Gariep municipality's debt settled

2012-11-05 19:59
(Supplied)

(Supplied)

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Johannesburg - The Eastern Cape government and the Joe Gqabi district municipality on Monday settled a debt of R2.7m owed by the Gariep local municipality.

The municipality recently lost a court case, which led to the Eastern Cape government attaching some municipal assets.

The Joe Gqabi district municipality is made up of the Senqu, Elundini, Gariep and Maletswai local municipalities.

Eastern Cape local government MEC Mlibo Qoboshiyane said: "The money has since been paid through the Joe Gqabi district municipality and all municipal assets attached must be returned to the municipality."

Qoboshiyane said a decision was made to pay the money in a bid to rescue the municipality from potential administrative and financial collapse.

"Together with the provincial Treasury, Local Government Association and the Joe Gqabi district municipality, we have decided to provide hands-on support to aid Gariep to better attend to their administrative and financial challenges," he said.

"Last year we had to pay an Eskom debt on behalf of Gariep and we are worried that this municipality always comes cap in hand, looking for emergency bailout."

Qoboshiyane said a number of factors that contributed to the administrative and financial problems were identified and some of these predated the merger of three local towns to form the Gariep municipality.

"Gariep is one of our municipalities with a low revenue base and this seriously affects their cash flow."

There were also serious administrative problems that exacerbated the financial situation in the municipality and the provincial government would attend to these.




- SAPA
Read more on:    johannesburg  |  local government  |  government spending
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