The big switch-off
City acts against massive government debt
SENIOR officials from the Department of Public Works (PWD) sped into Richards Bay on Wednesday to resolve the R16-million rand government debt owed to the City of uMhlathuze.
Their visit was prompted by action taken by the municipality in cutting off electricity to the offices of the Department of Home Affairs in Richards Bay on Tuesday – the first of a number of planned disconnections to premises occupied by national government departments.
Home Affairs clients, already burdened for months by long queues and delayed service, found themselves in front of locked doors as staff were forced to close with no telephones, power or internet connections.
PWD, responsible for settling the lights, water and other municipal services accounts at all government instances, frantically communicated with city officials and ‘the big switch-off’ – which would have had a massive negative effect on the public - was halted.
Ironically, while this was happening, a meeting of the city’s Executive Committee (Exco) was taking place in council chambers, with most of the debate focused on the interim financial report which highlighted long-standing government debt to the municipality.
‘We have sent out the warning letters and have begun cutting off those government departments that are in arrears,’ Chief Financial Officer Mxolisi Kunene told the councillors present.
‘There has been plenty of communication and meetings with the Public Works Department and we only take such drastic action as a last resort.’
It is understood the city was implementing directives issued by national treasury.
It certainly had the desired effect, with PWD officials wasting no time in rushing to the Bay to find a way forward.
At the time of going to press no information had been received regarding the outcome of the discussions.
There are other debtors who also owe massive amounts to the city, chief among which is parastatal Foskor, which has a 59% IDC (Industrial Development Corporation) ownership and an unpaid bill of more than R60-million.