5 Limpopo Municipalities heavily indebted to Eskom, have equitable share withheld

Langa Bodlani MPL

DA Limpopo Spokesperson on Treasury:

Yesterday, National Treasury withheld equitable share funding from five of Limpopo’s municipalities. These are municipalities which have failed to pay their indebtedness to Eskom.

 

Thabazimbi, Mookgophong, Makhado, Mopani and Ba-Phalaborwa now are at serious risk of service delivery shutdown.

 

The DA will urgently lodge questions in the Limpopo Legislature on the amounts owed to Eskom, and on negotiations with National Treasury to avoid this crisis.

 

The DA has been consistent in calling Provincial Treasury MEC Rudolph Phala, as the custodian of provincial coffers, to strengthen oversight on the finances of the municipalities. It appears that MEC Phala has neglected this crucial duty.

 

Unfortunately, it is the communities which will be the hardest hit. Equitable share funding is directly required for service delivery.

 

This withdrawal by National Treasury comes hot on the heels of over R500 million being unspent by Limpopo Human Settlements, and returned to National Treasury.

 

Clearly MEC Phala is failing the people of Limpopo.

 

The DA calls for an urgent joint committee meeting between the Limpopo Portfolio Committees on Treasury and COGHSTA to discuss effective means of ensuring proper oversight between the two provincial departments.