Buffalo City has demanded in writing that Pretoria settle the national Department of Public Works' accrued services debts of R23-million, the city's chief financial officer said yesterday.

"We are sending a registered letter making it clear that payment must be made within seven days of receipt ... failing which Buffalo City will resort to legal action and disconnection of services," said Brian Sheppard, the city's chief financial officer, in an interview with the Daily Dispatch.

Shepherd told the newspaper that the Department of Public Works had asked for additional information from the municipality regarding the list of government properties that were in arrears, adding that the department was not accepting responsibility for some of the properties.

According to Shepherd the independent audit which substantiated the outstanding amount covered the period between June 1998 and October last year. The newspaper said that during the four months of the audit the department failed to service its current accounts and this added a further R3-million to the overall amount which now stood at R26-million plus.

Shepherd said the Department of Public Works had around 300 accounts with the municipality's treasury.

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