Lifeline for strained North West municipalities

Sunday, June 4, 2017

Pretoria - The Department of Local Government and Human Settlements and  the Department of Finance, Economy and Enterprise Development in the North West have stepped in to assist at least three local municipalities in the province to generate revenue. 

Lekwa Teemane, Naledi and Mamusa local municipalities are set to benefit from the intervention. They will be assisted with the implementation of cost containment measures, as well as the implementation of the Back to Basics programme. 

“This intervention comes at the time when municipalities are busy with their annual budgets, which must be adopted by the councils. 

“Lekwa Teemane local municipality has been under financial strain for quite some time, struggling to honour payments to its creditors, [with] poor internal controls and lack of accountability on municipal assets. 

“Naledi local municipality also faces financial strain, [as it] is struggling to service its debts, which include servicing the monthly instalments of R9 million to Eskom. [It also has a] problem of a bloated municipal structure.

To date, its Chief Financial Officer has been placed on suspension for financial misconduct, pending the finalisation of a disciplinary hearing,” said the provincial government in a statement. 

The MEC for Local Government and Human Settlements, Galaletsang Gaolaolwe, and the MEC for Finance, Economy and Enterprise Development, Wendy Nelson, have issued clear instructions for these municipalities to set up meetings with creditors to discuss payment schedules, intensify revenue collection (including government debt), implement cost containment measures and the Auditor General’s audit action plan. –

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