By Kingsol Chabalala MPL, DA Gauteng Constituency Head – Emfuleni:
Job creation and local economic development in Emfuleni are at a severe disadvantage as a written reply to DA questions revealed that the municipality owes R121 million in late payments to service providers.
Payments outstanding for longer than 30 days stand at R11,4 million and at R7,7 million over 60 days.
Reasons provided for delays in payments by the municipality were “cash constraints and low revenue collection.”
(Click here to view the reply)
Municipal finance legislation requires municipal managers to ensure that all money owing by the municipality be paid within 30 days of receiving the relevant invoice or statement – hopefully new mayor Mahole Mofokeng will ensure that this happens.
Late Payments hamper the delivery of critical services to residents of Emfuleni. In most cases these service providers are small to medium businesses who create many jobs for local residents.
If a municipality can’t pay its bills on time, it certainly cannot deliver good quality services to its residents. We remain cautiously optimistic that the new Mayor will clean up the mess created by his predecessor.
The DA will monitor the payments of service providers through submitting a series of questions to ensure all bills are paid on time and services are effectively delivered.