MunicipalNews

Municipality’s debt rises to seven hundred million rand

At present the municipality owes various service providers and institutions more than R696,3 million.

The Govan Mbeki Municipality is facing a debt crisis of immense proportions.

At a public meeting, shocking figures were revealed, leaving many residents wondering if the municipality would be able to honour their debts.

At present the municipality owes various service providers and institutions more than R696,3 million.

This debt includes the R496,3 million owed to Eskom, more than R120 million owed to the provincial licensing and registration department, R71 million owed to Rand Water, R5,4 million which is owed to SARS and close to R3 million owed to the municipal pension fund.

Although the municipality has been contacted for comment on these matters a number of times, the comment received fails to address any concrete future repayment agreements, and instead focuses on blaming those residents who continue to steal electricity by way of illegal connections.

“Although these comments are applicable to the Eskom debt crisis, it is frustrating that no other plans seem to be implemented to fix the rest of the debt crisis,” explained one resident who wanted to remain anonymous.

Another contentious issue that has come to light is the fact that Ms Flora Maboa-Boltmann, Executive Mayor of Govan Mbeki Municipality, qualifies for a new car.

According to a member of the technical portfolio of the municipality, the purchase of a new vehicle for both the Mayor and the municipal Speaker was discussed at a recent meeting.

The Executive Mayor’s current vehicle, a Mercedes-Benz, now has about 150 000 km on the clock and therefore needs to be replaced, even though it has a clear service record and is in good working order.

It is estimated that a new vehicle will cost more than R1,5 million.

The fact that the municipality might also have to buy a new luxury vehicle for the Speaker, is highly irregular.

According to a SALGA circular dated 09/2017, the provision which allowed for a municipality to provide for an official vehicle for both the Executive Mayor and the Speaker, has now been changed, meaning that such vehicles can no longer be provided.

For this reason, Ms Mariaan Chamberlain, local DA councillor, handed in a letter of protest against the proposed vehicle purchases.

“The previous Speaker did not have a vehicle supplied to him, and with the current debt crisis I cannot see why the municipality should foot the bill for two brand new luxury vehicles.”

This matter will be discussed further at the council meeting scheduled for later in the month, but Ms Chamberlain wants to inform local residents of the situation while there is still time to raise complaints with their local councillors.

“We were in a similar situation at the beginning of the year, and due to pressure applied by the opposition, the Executive Mayor chose to forgo a new vehicle – let’s hope we achieve the same success this time round.”

 

 

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