Govan Mbeki Municipality debt amounts to R746 million at the end of June

It is no secret that Govan Mbeki Municipality owes Eskom and others millions.

According to DA councillor Mr Tim Denny, the municipality currently owes Eskom R496.3 million, the Licence and Registration Office R120.2 million, Rand Water R71 million, SARS R5.4 million and the Municipal Pension Fund R2.9 million.

“Furthermore, the total amount overdue to creditors amounts to R746 million at the end of June,” said Mr Denny.

Following this, the DA is negotiating with Cogta and Eskom to reach an agreement for ring fencing to be implemented where residents can be assured money paid to the municipality for electricity will go to Eskom and will not disappear.

The DA will organise public participation meetings and petitions to support their proposal.

They sent a letter to the Minister of Cogta, calling on them to intervene as per Section 139 of the Constitution.

It requires that a financial recovery plan is imposed on the municipality and that where the Provincial Executive does not do so or does so inadequately, the onus is placed on the minister to act.

Mr Denny will table this motion at the next council meeting on 28 September.

This motion calls for immediate ring fencing and includes, but is not restricted to:

· Pre-paid payments.

· Direct payments via EFTs.

· All cash payments.

· All late payments.

· All royalty payments from shares in investments.

· All annual business payments.

· All and any other payments from electricity billing.

 

Read the complete article in the Echo newspaper.

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  AUTHOR
Jana Oosthuizen

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