The Mpumalanga Economic Growth Agency, also known as Mega, has been ordered by a high court to pay over R231 million to the Tshwane metro within 10 days. The debt is related to water, sanitation, and electricity services provided to the Ekandustria industrial park. The amount has now increased to R461 million. If Mega fails to pay within the given timeframe, the city may take further steps to recover the debt, including targeting Mega's bank account through a court process.
According to Dr. Nasiphi Moya, the executive mayor of Tshwane, the city has been trying to recover the debt from Mega since 2021. Despite efforts to reach a friendly settlement, the amount remained unpaid, forcing the city to approach the court. Moya stated that the city's multi-party coalition government has prioritized the collection of outstanding debts since taking office in October 2024.
The city's efforts to recover outstanding municipal debt are not limited to residents and businesses but also include state departments and entities. Moya emphasized that the city's strenger debt collection measures will also apply to state institutions. The city has used Tshwane YaTima to take stronger action against defaulters, and Moya stressed that state entities and departments cannot be exempt from paying for services rendered.
Moya stated that the collection of outstanding debts is crucial to the city's ability to provide services. Every rand collected enables the city to invest in water, electricity, roads, and other basic services. The mayor emphasized that residents, businesses, state departments, and entities all have a responsibility to pay for services used or make arrangements if they are unable to do so.
The court's ruling comes as the city steps up its efforts to recover outstanding debts from various parties. Moya warned that the city will use every legal means to collect what is owed to Tshwane. The city's multi-party coalition government has made debt collection a priority, and Moya stated that they will not be selective in their approach.
Mega now has 10 days to comply with the court's order, after which the city may consider further enforcement measures. The city's efforts to recover outstanding debts are part of a broader strategy to improve service delivery and ensure that those who use services pay for them. Moya emphasized that the city's goal is to use collected funds to benefit residents and improve the city's infrastructure.
The debt collection efforts of the Tshwane metro are ongoing, with the city seeking to recover outstanding amounts from various parties. The court's ruling in favor of the city is a significant step in this process, and Mega must now pay the outstanding amount within the specified timeframe. The city's residents and businesses will be watching to see how the situation unfolds and how the collected funds will be used to improve services.
Key points
- The Mpumalanga Economic Growth Agency has been ordered to pay R231 million to the Tshwane metro within 10 days.
- The city's debt collection efforts are part of a broader strategy to improve service delivery and ensure that those who use services pay for them.
- The city's multi-party coalition government has prioritized the collection of outstanding debts since taking office in October 2024.
