Fred Nel MPL
Spokesperson on Local Government
Randfontein Local Municipality is in serious financial trouble which requires immediate intervention by the Gauteng Local Government and Housing MEC Ntombi Mekgwe.
In reply to my question the MEC indicated that the municipality owed R30 million to creditors which it was unable to pay within the required 30 day period due to cash flow constraints.
This municipality, in the last financial year, was also only able to spend 54% of its capital budget and currently has municipal debt of about R229 million owed to it. These three indicators (ability to pay creditors, outstanding debtors and the ability to spend capital funding) are key to the success of any municipality. The fact that the Randfontein municipality fails on all three of these indicators is a clear sign that it lacks the skill and capacity to properly manage its finances.
The municipality is already failing to deliver on its capital programme and it is only a matter of time before the municipality grinds to a halt.
The DA calls on the MEC to utilise her powers in terms of Section 139 of the South African Constitution to immediately intervene in the Randfontein local municipality to prevent it from sliding further into the financial abyss.