Business action saving grace where municipality fails – DA
DA caucus leader Chris de Wet said this week that if it had not been for the swift and decisive action taken by the business community of the Enoch Mgijima Local Municipality, local residents, businesses, schools, hospitals and old age homes would have had to endure electricity cuts from Eskom with a devastating impact.
In a statement this week, De Wet said at heart was the failure of the ANC-led local government to carry out proper and accountable municipal administration which had resulted in the financial collapse of the local authority.
“Consequently, the municipality defaulted to pay its Eskom account and is presently in arrears with
R147m. It also owes other creditors an additional
R100m-plus. This has led to the municipality being put under administration.”
The business community had, in the face of looming power cuts and the municipality’s failure to adhere to a payment plan with Eskom, issued legal proceedings and had secured a court order preventing Eskom from cutting the power.
The DA wants to express its appreciation to business and everyone involved in the court process, as the court application was the catalyst for Eskom and the municipality to sign a payment plan, thereby avoiding a crisis.”
He said the problem remained, however, that the municipality was still insolvent with an enormous amount of debt to be repaid.
“The only realistic option to bring the municipality back to solvency would be to get rid of the people responsible for the mess and also introduce a comprehensive financial recovery plan that is realistic, measurable, controllable and which will be agreed to by all stakeholders as to give it credibility.”
De Wet said EMLM residents were entitled to a viable, prosperous municipality where basic rights like electricity, water and refuse removal were rendered on a reliable and sustainable basis.
“The DA challenges the mayor [Sisisi Tolashe] and her mayoral committee to accept responsibility for the financial mess and to explain to the suffering residents as to how they intend to rectify the situation.”