The new integrated financial management system that the municipality implemented in July last year is the now labelled as the root of in the municipality’s financial problems.
“The main reason why the municipality became unable to pay the monthly electricity usage to Eskom from August 2017 onwards was because of the problems encountered with the new integrated financial management system which led to incomplete and incorrect accounts and which led to a decrease in payments from consumers,” is an extract from an affidavit from the acting municipal manager, Mr Sizwe Mayisela filed in opposition of the application by the Save Emalahleni Action Group to compel the provincial and national executives to intervene in the local municipality’s matters.
According to Mayisela the municipality was forced by National Treasury to implement the new financial management system from July last year. According to the municipality they are not to blame for the problem experienced with the system, which took until February 2018 to sort the system out. Yet residents’ dismay with faulty accounts suggests that the problem still exists.
“Mayisela’s aforementioned statement under oath is in stark contrast to several previous versions given under oath on behalf of the municipality on the root of their financial problems. Issues like the refusal by customers to pay, the effect of the Highveld and Vanchem closure, sales and distribution losses, the increase in the number of indigent households, illegal connections, by-passing of meters, lack of funds to install meters and unmetered households are now simply ignored,” local attorney Mr Johan Coetzee said.
Coetzee is heading the Save Emalahleni Action Group.
All the pleadings and court documents are available on the website of Johan Coetzee Incorporated: www.jcat.co.za.
WITBANK NEWS did not receive any response from Vesta in this regard.
“The billing system is not 100% perfect; however, the backlog on the billing period is being corrected. I can confidently say we are at 80% and it is an ongoing process,” said Mr Kingdom Mabuza, municipal spokesperson
