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FS Cogta sets targets following damning report

───   KATLEHO MORAPELA 07:37 Thu, 30 Jul 2020

FS Cogta sets targets following damning report | News Article

The Free State Cooperative Governance and Traditional Affairs Department (Cogta) is attending to municipal financial irregularities raised by the Auditor-General.


This is according to MEC Sam Mashinini, who tabled the department's 2020/21 budget on behalf of Thembeni Nxangisa on Wednesday.

Presenting the department's R446.3 million budget, Mashinini said bringing stability to municipalities across the province and addressing their service delivery issues is a main priority.

He highlighted that their escalating debts to water boards and Eskom is a great concern, which they are attending to. Following the attachment of the Maluti-A-Phofung municipality’s bank accounts by Eskom last week, Mashinini assured members of the public that they are in talks with the power utility over the municipality's debt.

Whilst municipalities in the Free State are ranked amongst the worst defaulters, this municipality alone owes the power utility over R5.3 billion.

Eskom has in a statement confirmed that it agreed to release R90 million to allow the municipality to pay employees' salaries and to meet other running costs. The power utility, however, says the municipality has until August 7 to conclude a payment agreement for its debt.

"The account balance will remain attached until a repayment agreement that meets Eskom’s requirements has been concluded, or until the court orders otherwise. This step on the part of Eskom is a result of the repeated failures by the municipality to adhere to its payment obligations to Eskom for the bulk supply of electricity" said the power utility.

Meanwhile, Mashinini says electricity and water challenges experienced in Maluti-A-Phofung is receiving their utmost attention.

He alluded that they've noted the Auditor-General's recent report with concern as it "displayed a very worrying picture". Mashinini told members of the house the bulk of the department's budget will go towards enhancing capacity within the department, and assiting municipalities.

Kimi Makwetu is his report flagged the province for lack of accountability and high irregular expenditure with none of the municipalities having managed to obtain a clean audit.


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