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Damning Finance MEC report shows gloomy picture for FS municipalities

───   LUCKY NKUYANE 10:51 Tue, 17 Sep 2019

Damning Finance MEC report shows gloomy picture for FS municipalities | News Article

A damning 68-page report by the MEC for Finance, Gadija Brown, has painted a gloomy picture of the ailing state of some of the Free State municipalities and government.


Gadija and her team on Tuesday read a 68-page report to members of the Provincial Legislature during a sitting by the National Council of Provinces (NCOP).

Brown says the report includes issues such as the failure by municipalities to adhere to some of the critical issues in order to deal with service delivery in the province and its failure to pay their debts, which runs into billions of rands and as a result often seeking national government's intervention.

The report found that the debt owed by some to the power utility Eskom remains a serious concern and poses a challenge to the provincial and national government, with municipalities' outstanding debt of R19,38 billion increasing monthly.

She and her team say this report looked into at least three of the worst municipalities that are regarded as distressed municipalities, including, amongst others, the Setsoto and Mantsopa Local Municipalities.

Money owed to creditors collectively (all the municipalities) has increased from over R10 billion to R15,2 billion.

On-site technical support from the provincial government has been provided to Phumelela, Thabo Mofutsanyana, Maluti-A-Phofung, Nala, Tokologo, Masilonyana, Ngwathe, Mafube, Fezile Dabi and Kopanong.

Brown's report says support has been provided to 22 municipalities as a part of the province’s strategy to address non-compliance. Mangaung and Matjhbaneg contribute most of the outstanding debtors amounting to R6.1 billion and R3.3 billion respectively.


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