SASOLBURG – The Metsimaholo Local Municipality wants to borrow R130m to acquire municipal vehicles and a fleet of vehicles to improve service delivery. The municipality spends millions annually on vehicle repairs, and there are also more electricians and plumbers than there are vehicles. The municipality intends to incur long-term debt to acquire a fleet and equipment through a lease-to-own tender for a period starting on July 1 this year until June 30, 2030. Thereafter, the vehicles will be fully paid for and transferred to the municipality via the lease-to-own option.

The municipality will launch an open tender process to obtain offers from institutions accredited in terms of the National Credit Regulator.

The proposed loan will be repaid over a period of 60 months.

Sixty installments of R2 826 515 are repayable, and the interest amounts to almost R40m.

The funds will reportedly be used to purchase, among other things, refuse trucks and construction vehicles.

According to a statement issued by the municipality, the purpose of incurring the long-term debt is to serve the community in a sustainable manner, promote a safe and healthy environment for residents, and deliver services efficiently and within acceptable service level standards.

The long-term debt will be repaid over a period that is in line with the municipality’s financial capacity and growth projections, to ensure that the long-term debt does not negatively impact the institution’s long-term financial stability. The municipality further invites the public, in terms of section 46(3) of the Municipal Finance Management Act, read with section 21A of the Municipal Systems Act, to submit written comments or submissions to the municipality regarding this loan application.

The closing date for written comments and/or submissions is April 4.

All comments and/or submissions should be addressed to the municipal manager, FJ Motloung, on 016 973 8311 or via email: cfosecretary@metsimaholo.gov.za; reference: Section 46 report.