GRAAFF-REINET NEWS — Finance Minister Nhlanhla Nene wants the Eastern Cape government to take over the running of 15 distressed municipalities. This includes the Dr Beyers Naudé Municipality based in Graaff-Reinet.
The other municipalities are Inxuba Yethemba in Cradock, Chris Hani, Great Kei in Kei Mouth, Makana in Grahamstown, Ndlambe, Kouga, Ngqushwa in Peddie, Enoch Mgijima, Emalahleni in Dordrecht, Intsika Yethu in Cala, the Amathole district municipality, Sakhisizwe in Khowa (Elliot), and Walter Sisulu municipality in Aliwal North.
Nene said that when matching "cash and cash equivalents" against "total creditors" for the period, "it showed that municipalities with unfunded budgets are unable to pay their creditors within the prescribed 30 days".
These details are contained in Nene's written response to parliamentary questions by DA Cooperative Governance and Traditional Affairs (Cogta) shadow minister Kevin Mileham.
Mileham said this meant the municipalities had insufficient resources to meet the service delivery needs of residents, as their income did not meet their forecast expenditure.
"It may also indicate that municipalities are not budgeting effectively, or are not adopting austerity measures to ensure that basic services are prioritised."
Nene stated that it was the responsibility of the municipality concerned to make financial recovery plans, but there is provision for the municipality to request support for the development of this from provinces and National Treasury. Addressing the media last week, Nene said: "It is not that they [the municipalities] do not have the money. It's because they plan to do things they don't have to do. So it's actually poor planning, poor budgeting."
He added: "We are working with Cogta, among the interventions. We are beefing up to see if those municipalities in distress cannot be put back on track."
The DA wants the minister to move with speed and intervene, with Mileham saying: "The DA cannot allow our local governments, which have a clear mandate of service delivery, to fail."
n When approached for comment, a spokesperson for the Dr Beyers Naudé Local Municipality stated that they would not be commenting on the matter.
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