Municipal manager Leibbrandt’s response

Drakenstein acknowledges that the municipality rely (sic) heavily on external borrowings to finance capital expenditure but the municipality has no other choice if the municipality wants to stimulate economic growth and development.

For the record, Drakenstein, as a secondary city, received a Municipal Infrastructure Grant (MIG) of R 33.5m from the National Fiscus financing only 4.6 percent of the municipality’s capital expenditure budget.

Drakenstein Municipality clearly do not get their fair share of MIG allocations and this forces the Municipality to fund projects that MIG funding should cover.