Gariep municipality's debt settled

2012-11-05 19:59

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.

  • lsfreak - 2012-11-05 20:47

    We don't have any money... Where's my chair...Taken... Quickly pay dat account :/ Very unlikely... Prob Don't worry we will cover it this time... Eastern Cape in action :D

  • rob.bayliss.94 - 2012-11-05 21:43

    Great budget planning and implementation I don't think! It is surely not suprising that I am really pissed about my tax beening used to finance the bail-out?

  • hannah.p.mostert - 2012-11-05 22:00

    A lot of fancy words in this article to cover for theft of municipal funds, we can read between the lines

  • peter.j.cock - 2012-11-06 07:18

    Interesting statement "There were also serious administrative problems that exacerbated the financial situation" Does that mean theft from the local coffers - a self help scheme - is being covered up by politics?

  • jack.kukard - 2012-11-06 07:25

    They can't even run a bath of water........

  • maureen.walton1 - 2012-11-06 08:36

    On the Joe Gcabi's website it is noted that "Meanwhile, the AG said he is very proud of JGDM and he sees the District Municipality as a candidate in best practice in its audit report." "AG Nombembe, Municipal Manager Zolile Williams, Audit Committee Chairperson Zola Luswazi, MPAC Chairperson Themba Notyeke, Acting for Executive Mayor, Cllr Nomvuyo Mposelwa (Chief Whip Joe Gqabi DM) and Speaker Cllr Bongani Salman made a hand print commitment plaque for both clean audit and administration in the institution" What a waste of money. Maybe they should declare the costs of the plaque as more 'fruitless and wasteful expenditure'.

  • flysouth - 2012-11-06 14:25

    A low revenue base? Then surely that revenue base is composed of those people and businesses who need and will pay for electricity etc - or is it, as usual, a case where the payers are expected to subsidise by 100% all the non-payers, whilst the muncipality's collections department turns a blind eye if you are black or have an illegal connection?

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