Municipal
MEC says Govan Mbeki Municipality must honor Eskom and Water Board payment plans so that things will improve.
Mr Msibi said the rising consumer debts in local government should spur public representatives at levels of government and non-governmental organisations into action to educate communities about the importance of paying for municipal services.
HIGHVELD – The financial status of Govan Mbeki Municipality is deteriorating monthly.
The municipality currently owes Eskom more than R2-billion and Rand Water more than R350-million. This resulted in Eskom throttling electricity supply to GMM after the municipality exceeded the agreed demand level as per the contract between the municipality and Eskom.
Rand Water began reducing water supply by 20 per cent since Monday, 9 November because of the municipality’s account that is in arrears.
The municipality acknowledged that its expenditure exceeds the income and that the Eskom debt is the highest contributor to the current financial status quo. In the recent council meeting Ms Elizabeth “Lizzy” Tshabalala, acting municipal manager, reported to council that more than R100-million was recently paid to Eskom.
Mr Mandla Msibi, MEC for CoGTA, announced in October that the municipality is on the verge of collapse and the only way to save GMM, is to place it under administration.
He said the Eskom debt is a clear indication that the municipality is not adhering to its payment arrangements with Eskom. He said this harms their financial viability and might further spark service delivery protests if Eskom cuts electricity supply within a municipality as part of their credit control measures.
He said the municipality must honor the Eskom and Water Board payment plans as agreed so that things would improve.
Mr Msibi is of the view that for the municipality to recover from this state, it must focus on revenue enhancement on debtors and creditors management capability.
He recommended the municipality must look at sourcing external financing where possible to bridge required capital finances to accelerate infrastructure and service delivery.
Mr Msibi said the rising consumer debts in local government should spur public representatives at levels of government and non-governmental organisations into action to educate communities about the importance of paying for municipal services.
Mr Msibi noted that until communities are educated, the inadequate revenue faced by municipalities will deteriorate.
“Through civic education, residents can change their mindset.
“Now is the time for public representatives at our provincial government and our municipalities to educate communities to pay for electricity, water and other services.”