MunicipalNews

Municipal debt a concern to many

Water supply challenges furthermore have been reported on extensively and the DA established in a response to questions put forward in the legislature that 16 municipalities owe Rand Water an amount of R363-million.

With the DA in Mpumalanga alarmed about the provincial outstanding debt to entities such as Eskom and Rand Water, the Lekwa Municipality’s debt once again is subject to scrutiny.

According to a DA press release, municipalities owe more than R1.3-billion despite National Treasury’s rule of settling accounts within 30 days.

The province’s government has resorted to handing over the role of municipalities distributing and selling electricity to Eskom due to low generation of revenue.

The DA alleges that the Municipal Finance Management Act (MFMA) and constitutional constraints which are placed on municipalities and public officials are overlooked.

The Standerton Advertiser reported early this year that Lekwa’s new repayment plan for the outstanding amount to Eskom was reviewed.

According to Eskom, Lekwa was in arrears of more than R206-million in March.

Eskom alerted the municipality in the past that the electricity supply will be cut off in peak hours, which to residents’ and businessmen’s collective relief did not happen.

The party also said that entering into and faulting on settlement agreements by municipalities has become the norm for the province since 2013.

Water supply challenges furthermore have been reported on extensively and the DA established in a response to questions put forward in the legislature that 16 municipalities owe Rand Water an amount of R363-million.

The party called on government to assist municipalities to establish a way to address non-payment of debt.

E-mails to Ms Thobeka Mtshiselwa, communications manager of the municipality, failed to reach the recipient and a letter was hand-delivered at the municipal offices on 29 September.

Confirmation of the outstanding debt was sought and if the repayment arrangements are adhered to as well as comment on the municipality’s plan of action to address the electricity and water issues.

No comment was received at the time of going to press.

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