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Debt of R91 million for ‘holy’ marriage
What the executive mayor Kgotso Khumalo describes as ‘a holy marriage’ between Tlokwe and Ventersdorp will certainly not easily receive matrimonial blessings from opposition parties because of the calamitous financial implications Ventersdorp brings to the union.
What the executive mayor Kgotso Khumalo describes as ‘a holy marriage’ between Tlokwe and Ventersdorp will certainly not easily receive matrimonial blessings from opposition parties because of the calamitous financial implications Ventersdorp brings to the union.
In last Thursday’s day-long special council meeting, it was revealed that Ventersdorp municipality will be bringing with R91 million worth of current debt due to creditors. This includes the R49 million owing to the power utility, Eskom.
The DA caucus leader, Hans-Jurie Moolman says the executive mayor admitted that these estimates are fair. In addition, and based on an intended 100 per cent recovery of rates and taxes for a budget of 170 million, there is likely to be a deficit of almost R30 million for Ventersdorp.
According to Moolman, it also came to light that Treasury had only contributed R13 million to fund the amalgamation.
“When the mayor was confronted with these realities, he agreed to write to the national and provincial governments for additional funding. This admission is, in our view, a vindication of the fact that we repeatedly stated before the amalgamation that the decision to do so was for political expediency and that there is no justifiable rationale.
“In fact, it is now clear that no financial consideration was given to the decision to amalgamate. If the executive mayor fails to get the financial support to address the above-mentioned challenges, Tlokwe will be the only available sponsor,” Moolman said.
The mayoral spokesperson, Victor Boqo, confirmed that national treasury had offered R13 million as a transitional grant, but admitted that the mayor will be going back for more.
“The executive mayor is going to engage treasury for more money as the workload of the merged municipality is too big. All outstanding money owed by Ventersdorp municipality to other stakeholders will be part of the engagement the mayor is going to have with the national treasury.”
Khumalo has promised to deal with the problem. “Ventersdorp has serious problems. It was once under administration; we have to take the responsibility of dealing with that. The minister of Cooperative Governance and Traditional Affairs (Cogta) [then Pravin Gordhan] deemed it viable for the two municipalities to merge,” he said.
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