Durban - Transnet has committed to settling its alleged R14-million debt with the Msunduzi Municipality once the debt has been verified.
The state-owned entity said it remained committed to paying its rates and taxes.
“A meeting was held with Msunduzi Municipality to kick off discussions about Transnet’s accounts.
“The municipality has confirmed that Transnet will not be disconnected in the next seven days while the accounts are being verified. Transnet remains committed to paying its rates and taxes once verification has taken place,” the entity said.
As part of its drive to extract payment from defaulters, Msunduzi disconnected properties belonging or linked to Transnet last week, alleging the company owed the municipality R14m in consolidated debt.
“Transnet consolidated debt being in excess of over R14m, we are disconnecting all linked properties,” the municipality had said in a post on its Facebook page as it disconnected some of Transnet’s properties.
Transnet is among other government entities, departments, schools and businesses that have been targeted by the municipality in an aggressive collection campaign that has even named and shamed the defaulters.
In the first week of its campaign, the municipality had collected more than R50m and has disconnected more businesses this week.
It is aiming to recoup about R1.2 billion it is owed for rates and R5.5bn that is owed for services.
Ingonyama Trust, which allegedly owes millions in rates for land under its control, resorted to legal action to have its services reconnected.
Msunduzi mayor Mzimkhulu Thebolla said they were aware that there were other businesses that have been disconnected and were now contemplating legal action in an effort to have their services reconnected.