The Portfolio Committee on Co-operative Governance and Traditional Affairs was held today (January 28).

Financial irregularities

The entire municipal management, including uThukela Mayor Inkosi NB Shabalala, were questioned about financial irregularities by the committee. The questions revolve around the employment of bodyguards, monies owed to RASP (a whopping R137 million) and the solvency of the municipality. According to uThukela Municipal Manager Mr LS Jili, the municipality owes a massive R800 million to creditors. Listed among their largest creditors is Umgeni Water, RASP and Alfred Duma Municipality.

Water issues

Questions were also raised by how RASP could be employed to fix the latest water issues at the Ezakheni Water Treatment Plant. uThukela responded that it was not them that hired RASP but Umgeni Water.

Shockingly, uThukela admitted that it would be unable to meet full solvency within the next three years. They are currently in discussions with National Treasury to find a way forward to assist.

Read the Ladysmith Gazette next week for the full story.