The Merafong Local Municipality is on the brink of collapse, and there are concerns that other smaller municipalities may follow, the Democratic Alliance in Gauteng said.
According to Solly Msimanga, a member of parliament and DA Gauteng Official Leader of the Opposition, “We have learnt the Merafong Local Municipality will not be able to pay May salaries without the assistance of the Gauteng Provincial Government (GPG)”.
He said the payment levels of Merafong have dropped to below 50 per cent, and Eskom and Rand Water were short-paid this month.
“Currently the Merafong Municipality is paying creditors in order of priority, and only when money is available. This municipality, like many others under the current government that have had unfunded budget, such as Emfuleni Local Municipality, Lesedi Local Municipality, Mogale City Local Municipality and Rand West City Local Municipality, are battling to pay for bulk services from Eskom and Rand Water.”
Msimanga added due to the Covid-19 pandemic the municipalities are struggling to collect revenue.
“This pandemic, which has seen the country on lockdown since 26 March, has led to some residents being forced to stay at home without earning a salary, which in turn means that they are unable to pay their municipal accounts. Furthermore, these municipalities were also battling to deliver basic services prior to the lockdown.
“We are deeply concerned that this pandemic will only put municipalities in a worse financial position as the residents continue to battle to pay for services. If these municipalities do not get financial assistance from GPG, they are at risk of being unable to pay salaries to councillors and staff, and this will also mean relief efforts and food support to the most vulnerable will fail.
“While the President announced that municipalities will receive financial assistance to ensure that they are able to provide basic services, we call on the Gauteng MEC for Cooperative Governance and Traditional Affairs to provide us with a detailed response plan on how the GPG will mitigate the revenue shortfall in rural Gauteng municipalities so that those societies are not left without governance and support.
“Furthermore, as a matter of urgency, the MEC must provide the amounts and time frames before the end of May on how the financial assistance will be allocated. Instead of focusing on Tshwane, the MEC should be focusing on these failing municipalities who are in dire need of urgent intervention.”
