TCLM: Provincial government is requested to intervene

The TCLM has been placed under administration twice in the past. In light of the recent evidence of this malfunctioning municipality, more pressure is being placed on the provincial government to intervene. In Labuschagne’s demand letter she requests that the province take over service delivery in TCLM and assist with the payment of R407 million in Eskom debt. The letter does not request for TCLM to be placed under administration at this point in time. This urgent intervention demand to the province is a direct result of the continuous maladministration issues evident at TCLM.

Also read: Police Station gets a facelift

On the Steelburger/ Lydenburg News front page last week, a comprehensive article was published stating: “The Supreme Court of Appeal dismissed two applications by Eskom against the TCLM on December 28. “The court’s deputy president, Xola Petse, wrote in a unanimous judgement by the full bench that the national and provincial governments need to intervene in the financial crises. “The court also stated that Eskom had attempted to coerce municipalities to pay when they were unable to do so.”

The Department of Cooperative Governance and Traditional Affairs (Cogta) provided an update of municipalities that are in the process of collapsing and are crippled by financial mismanagement. The reasons range from poor, sometimes unlawful, financial management; unspent funds and an inability to collect revenue; spiralling debt and collapsing infrastructure, to governance failures stemming from dysfunctional councils. Cogta and the Treasury are working together to establish a joint technical intervention team to address the issues.

Also read: Court dismisses Eskom appeal