Bidvest slams brakes on bad payer Emfuleni
Eric Naki
The ANC-run Emfuleni Local Municipality in Gauteng has had its entire fleet of vehicles repossessed by a service provider, due to nonpayment.
The vehicles, including essential services vehicles from the traffic, water and electricity departments, and fire engines were repossessed by Bidvest. This is the latest in a string of troubles the municipality has faced this year.
Last month, Eskom issued a notice that it intended to start phasing in scheduled power interruptions, after Emfuleni failed to adhere to an agreement with the power utility regarding its repayment plan.
At the time, its monthly debt to Eskom had increased to R200 million and the situation prompted the utility to cut off the power supply from August 6, 2018.
According to DA Gauteng shadow MEC for finance Adriana Randall, Eskom had said that the province refused to accept the payment plan it proposed.
Due to its failures, Emfuleni was placed under partial administration, prompting mayor Jacob Khawe to resign in protest, after being in office for only six months.
Khawe was elected as Gauteng ANC secretary last month.
Emfuleni is comprised of the towns of Vereeniging and Vanderbijlpark.
Dr Makhosi Khoza, executive director on local governance at Outa, said repossessing of vehicles came as no surprise, saying her organisation believes that Emfuleni should now be dissolved.
Khoza said the municipality hadn’t adhered to National Treasury regulations which stipulate that service providers must be paid within 30 days of issuing an invoice. Emfuleni has also not honoured its financial obligations to Eskom, Rand Water and many other service providers.
“The councillors in Emfuleni municipality have failed to fulfil their electoral mandate. Allow communities and civil society to play a part in rescuing the collapsed Emfuleni municipality,” she said. “When all is said and done, it is the communities that suffer when municipal services are not delivered or fail.”
Emfuleni was recently placed under section 139 of the constitution that provided for the dissolution of a municipality.
Premier David Makhura said the province would take over the financial control of Emfuleni. He also announced a comprehensive intervention plan in line with section 139 so as to ensure minimum standards of service delivery and financial recovery plan.
Khoza urged Cooperative Goverance Minister Dr Zweli Mkhize to afford Outa an opportunity to meet with him to find sustainable municipal solutions.
“He [Mkhize] has repeatedly ignored the community and civil society in the resolution of municipal problems,” she said.
In June, Gauteng cooperative governance MEC Uhuru Moiloa revealed in legislature’s written questions from the DA that Emfuleni had wasted over R60 million buying dustbins, grass cutting, and on cleaning campaigns.
Randall said despite Emfuleni having recently been placed under administration, the section 139 intervention had come too late.
She said Gauteng finance MEC Barbara Creecy had informed her that a recovery plan had been formulated and was currently sitting with Treasury for approval. Creecy said the process could take up to six months. An Emfuleni spokesperson could not be reached for comment.