Ricochet News

Nelson Mandela Bay’s current assets now at R3.2-billion

NOVEMBER 14, 2014
Nelson Mandela Bay’s current assets now at R3.2-billion

Nelson Mandela Bay’s current assets total R3.2 billion, of which R1.6 billion or 50.25% is cash and investments and nearly R1.1 billion or 32.74% consumer debtors. The investment portfolio has increased by R23.7 million (1.8%) since June 2013.

A report to the Budget and Treasury Committee, which meets next week, shows that other debtors contribute R438.5 million or 13.67% and inventory R107.2 million or 2.34%.

Nelson Mandela Bay’s current liabilities, according to the report, total R2.3 billion, of which trade and other payables contributes nearly R1.9 billion or 81.36%; provisions R121.1 million (9.27%); borrowing a fraction under R114 million (4.98%) and consumer deposits R110.3 million (4.39%).

The report from Chief Finance Officer Trevor Harper says that the Current Ratio, which assesses the metro’s ability to meet its short-term commitments, was at 1.40:1 as at June 30 this year against 1.14:1 at the same point in 2013.

The report shows that overdue consumer debt has increased by R382.1 million or 24% since June last year with the average debtors’ collection rate at 93.71% as at June 30 this year, compared to 92.60% at the same point in 2013 and a target of 94%.

The amount of overdue debt includes R144.2 million owed by a group of high-energy users who are in dispute with the municipality over electricity tariff increases.

Negotiations are currently underway to resolve the dispute that dates back to July 1 last year. - metrominutes