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Phalaborwa, Kruger Park in talks over R44m municipal debt

The KNP’s Phalaborwa Gate had its water briefly cut over a R44m rates dispute, but talks with the municipality are now underway.

PHALABORWA – There is positive engagement between the Ba-Phalaborwa Municipality (BPM) and the South African National Parks (SANParks) after the Kruger National Park (KNP) Phalaborwa gate had its water supply shut down recently.

BPM cut water supply on December 9 last year, due to an alleged R44m in unpaid rates and taxes accumulated by KNP over several years.

The debt-collection company on behalf of the municipality told the Herald that there was a fruitful engagement virtually, attended by managing director of KNP, Oscar Mthimkhulu and other management representatives from the Phalaborwa gate, Sanparks head office and the municipality.

Sanparks head of communications JP Louw, in December, told the Herald that “following an engagement with the respective municipal manager Thabitha Mokobi, earlier on the same day (December 9), an agreement was reached to restore water supply to the park with immediate effect. This was subsequently done on the same day.”

Louw further said that a meeting with the municipality has been arranged to address this matter comprehensively and to work towards a constructive and sustainable solution.

Park questions calculation of owed amount

Among issues that require agreement with all parties is an agreed methodology on how property rates must be calculated, considering legislation that governs Sanparks and, by extension, KNP.

“Specifically on the matter with Ba-Phalaborwa, clarity will be sought on how calculations were made of the suggested owed amount. As is, there are no records on our part confirming that an amount of R44 million is legitimately owed to BPM,” he said.

He also stated that “whilst municipalities do provide some essential services to KNP, it must be noted that the park is largely self–sufficient”.

Louw also confirmed that a follow-up meeting will take place later this month (January) to discuss the way forward.

Muni continues broader debt collection campaign

The KNP is not the only defaulter. Other major debtors, according to the debt collecting company, include residents in estates, whose combined debt is estimated at between R2m and R3m.

Individual homeowners, schools, lodges, clinics, community property associations, and various other entities owe additional arrears.

Some cite financial difficulties, while others argue there is no justification for paying rates and taxes when the municipality allegedly fails to provide basic services.

Many point to ongoing issues such as inconsistent water supply, pothole-ridden roads, a deteriorating electricity network, frequent power outages, and widespread sewage spills affecting several parts of town and surrounding communities.

Municipality spokesperson Jonas Mahesu confirmed that they are continuing with the collecting campaign in January and more people can expect to have their services cut if they don’t meet their financial obligations due to the local governmental institution.

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Emelda Tintswalo Shipalana

Tintswalo Shipalana, a journalist for the Letaba Herald, has been in the media industry for over a decade. She started her journey in radio, but ended up in print which is her first love. She joined the Herald newspaper as a cadet in 2016, where she graduated with a journalism qualification from the Caxton Training Academy. She also has a qualification in Feature Writing from the University of Cape Town and a Media Management qualification from Wits University. She is completing her BA Communication Science degree with UNISA. She sleeps well at night knowing she is a voice to the voiceless and her work contributes to promoting local talent, businesses and service delivery. Her love for her community keeps her working hard every day.

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