Members in arrears

2018-02-14 06:02
Mxolisi SiyonzanaPhoto: Dan Xangaza

Mxolisi SiyonzanaPhoto: Dan Xangaza

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Council members of the Mangaung Metro Municipality had by 30 June 2017 owed the municipality altogether R417 000 for services.

This is according to the annual report tabled during the council meeting on 31 January.

The law stipulates that a member of the council must not be in arrears on municipal accounts for longer than three months, otherwise the member must be expelled from the council.

Mxolisi Siyonzana, the speaker of the Mangaung Metro Council, owed R92 500 on his municipal account, while his salary is more than a million rand per year.

During the meeting, Siyonzana said that his debt was “already a lot less”.

The council’s outstanding debt was revealed by Hans Britz, DA council member. He presented his speech reacting to the Municipal Finance Management Act: budget and performance assessment report, section 72(1)(a), for the period ending on 31 December 2017.

Britz warned that the Mangaung Metro had by 30 June 2017 owed creditors more than R394 million, while government debt amounted to R709,8 million on 31 December 2017.

“This metro cannot manage their budgeted expenditure, outstanding debtors are increasing fast, we do not have much money in the bank and we cannot pay all our creditors on time. government and councillors should be an example for ratepayers,” said Britz.

He also strongly encouraged the speaker to pay his account.

Britz said residents of the Mangaung Metro’s debt had been R4,2 billion by December 2017 and had been R192 million more than November 2017.

“On average the outstanding debt balance increased with R55,6 million per month for the first six months of this financial year. If more people join the non-payers we will be in deep trouble very soon,” said Britz.

Britz said according to the report, the property rates income is R36,1 million (7%) more than budgeted and the sanitation revenue R17,3 million (6%) more.

“Both use a tariff applied to the valuation to calculate income. The metro has collected R54,4 million more than the budgeted amount for the first six months of the financial year,” he said.

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