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Public Works pays off R24m debt to BC



26 April 2004

THE national Department of Public Works has paid more than R24-million owed in rates and services to Buffalo City, the Daily Dispatch has reported.

"The promise to pay the R24,8-million debt owed to Buffalo City by the Department of Public Works has now been made good," the City's communications officer Darby Gounden told the newspaper.

The total, paid in two amounts over March and April, ended months of controversy surrounding the debt owed by the department, it was reported. The dispute occurred after Buffalo City demanded, in writing, that the department settle its accrued debt.

According to the newspaper, a war of words erupted in early March between City Manager Mxolisi Tsika and the department's spokesman Lucky Mochalibane over the debt, with Mochalibane challenging the municipality to open its books and publicly state which departments were in arrears and how much each building owed in rates and services.

Tsika told the Daily Dispatch there was still an outstanding balance of R2,8-million relating to current charges, which the department was in the process of paying.

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