Msunduzi cash ‘only tells half’

2015-11-26 10:38

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Pietermaritzburg - Just last week the Msunduzi Municipality said it had a “good story to tell” in that the city’s cash reserves were sitting at a positive balance, with three months’ supply available.

However, this was challenged by DA MP Mergan Chetty, who said yesterday that Msunduzi had told only half the story.

The good news was delivered by municipal manager Mxolisi Nkosi during last week’s executive committee meeting, and was followed by a press statement issued by the municipality this week, saying that the “wonderful news” was shared by Mayor Chris Ndlela and Nkosi and was “well received by all”.

“Indeed council does have a good story to tell under the leadership of Mayor Chris Ndlela and the Municipal Manager Mxolisi Nkosi,” read the statement from municipal spokesperson Nqobile Madonda.

However, Chetty said that a three-month cash reserve was nothing to boast about as this is the norm required by the National Treasury.

He said the bigger story, which the municipality failed to include, was that it was owed R1,8 billion in outstanding debt.

“When this council was placed under Section 139 (1) (b) administration, its outstanding debt was approximately R600 million, but currently it is R1,8 billion. Government debt is sitting at R134 million. Of serious concern is that 60% of this is over a year old. Is this a good story to tell?” asked Chetty.

He predicted that with the local government elections looming, council would write off a portion of its bad debt.


Read more on:    msunduzi municipality  |  pietermaritzburg

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