Msukaligwa not one of five municipalities considered to be placed under administration
Mr Mandla Zwane said Mr Mashilo made no mention on which of the five municipalities would be put under administration and that the MEC only mentioned that COGTA would be engaging and informing these five particular municipalities in due course.
At a South African Local Government Association (Salga) provincial members assembly that took place from 2 to 3 August, it was said that five Mpumalanga municipalities are under consideration to be placed under administration in terms of Section 139 (1) (b) of the Municipal Finance Management Act (MFMA) for gross financial mismanagement.
The Cooperative Governance and Traditional Affairs (COGTA) MEC, Mr Speedy Mashilo, and Parliament’s Standing Committee on Public Accounts (Scopa), revealed the five municipalities owe Eskom a combined total of R4,4 billion.
However, residents of Msukaligwa will be glad to know that the local municipality is not going under administration yet.
In his speech, Mr Mashilo emphasised Section 139(1) of the MFMA that reads:
“If a municipality, as a result of a crisis in its financial affairs, is in a serious or persistent material breach of its obligations to provide basic services or to meet its financial commitments, or admits that it is unable to meet its obligations or financial commitments, the provincial executive must promptly request the Municipal Financial Recovery Service.”
When the Highvelder enquired at the municipality whether it is one of the five municipalities on the list and if there is a possibility of it ever going under administration, the municipal spokesman, Mr Mandla Zwane, responded on behalf of the municipality and said Mr Mashilo made no mention of which of the five municipalities would be put under administration and that the MEC only mentioned that COGTA would be engaging and informing the five municipalities in due course.
“As of 13 August, the provincial executive has not issued a directive to the municipality as required before it can assume responsibility, describing the extent of the failure to fulfill its obligations and stating any steps required to meet its obligations,” Mr Zwane said.
If municipalities go under administration for various reasons with Eskom debt at the forefront, Msukaligwa has confirmed that their Eskom debt is currently being paid.
As reported in the Highvelder on 10 August, “Msukaligwa’s Eskom debt being paid”, the municipality is paying the power utility giant its monthly instalment.
According to the municipality, it owed Eskom an outstanding amount of R61 103 4448 million on 31 July.
Also read:
https://highvelder.co.za/63312/power-outages-can-be-avoided/
