TO rehabilitate the deteriorating South Coast roads, Hibiscus Coast Municipality council took a resolution to solicit a loan of R300-million at a council meeting held on Tuesday.
After numerous attempts to fix potholes, council has taken a decision that more funding is required for the rehabilitation of the municipality’s road infrastructure.
According to the Municipal Finance Management Act, a municipality may incur a long-term debt, if a resolution of the municipal council is signed by the mayor, and he or she has approved the debt agreement.
Furthermore, the law prescribes that the accounting officer should sign the agreement and other documents to acknowledge the debt.
A request has been sent to national treasury, provincial treasury and Co-operative Governance and Traditional Affairs (COGTA) and the municipality is currently awaiting a response and comments.
HCM has also partnered with SANCO Development Institute and the Road Accident Fund in fixing potholes. An amount of R10-million will be available to assist in the maintenance of the road infrastructure to ensure public safety.
This project will be run by cooperatives, who will receive constant training and support through the institute.
