The DA caucus leader in the council, Johannes le Grange, told OFM News that the city is hit by massive losses each day. 

He said "the Auditor-General (AG), Tsakani Maluleke, has indicated that the city is hit by water losses valued at R700 000 a day. The city runs at a 52% loss of water, while electricity losses are R322 million, which is 38%". 

Le Grange said in November 2022 the heavily indebted city contracted about 16 contractors or service providers but they could only work for a month because the municipality had run out of money to pay these service providers. The city had a loss of R621 million for the 2021/22 financial year despite a recovery plan by councillors.

"Part of the recovery plan is that if you can't raise your income, you have to lower your expenditure. So, one of the plans we put on the table was that the non-payers should start paying – even a flat rate. So we want everyone to start contributing. Another very important issue is that, at this point in time, our biggest income a year is R1.1 billion for electricity. But do you know what's happening now? The good payers are moving to solar. The towns are representing 90% of the total income of this institution, and this is your good payers who are moving to solar," Le Grange added.

The Klerksdorp-based city is faced with a road infrastructure headache as most of its local roads are in a dilapidated state. Most roads in and around towns, suburbs and townships are in a bad condition with potholes causing frustration for motorists.

Addressing this issue at the Mayoral Imbizo on Wednesday 8 March 2023, mayor James Tsolela said the municipality was busy patching and fixing most of the roads in the aforementioned areas across the city. Pictures and videos taken by OFM News around the area show how some of the roads have either collapsed or are not in a good condition.

These routes include many in Orkney, Kanana, Jouberton, Alabama, and Klerksdorp. However, despite the picture on the ground, Tsolela said the city is filling and patching these routes.

Tsolela said in his first two months in office he took on the project as a mayoral project, to fix the roads.

ALSO READ: Matlosana in spotlight over bad roads – VIDEOS, PHOTOS

OFM News previously reported that the municipality is one of the heavily indebted municipalities in the province, with some of its debt running into billions of rands.

The municipality, which was a massive financial contributor in the province with its gold and platinum mines around areas such as Orkney near Kanana and Stilfontein near Khuma, is struggling to keep up with arranged payments with its service providers.

The municipality owes a combined R2.6 billion to at least two service providers and still fails to keep up with the monthly instalments. Mayor Tsolela said the municipality owes Eskom R1.5 billion and the [Midvaal] Water Board or utility R1.1 billion. He, however, said the municipality has further entered into more revised payment arrangements with these two entities.

ALSO READ: North West's Matlosana Municipality owes billions

Eskom already has a court order against the municipality and it comes after the troubled municipality failed to settle its monthly debt repayment to Eskom, which now is R1.5 billion in the red.

ALSO READ: Eskom gets court order over Matlosana's R1.5 billion debt

Over the years, the municipality has failed to keep up with payment arrangements with Eskom, plunging the city into a debt crisis.

On Wednesday, Tsolela told residents, who gathered at the municipal hall in Klerksdorp for the Mayoral Imbizo, that despite challenging the court order, Eskom won in the end.

He said they have entered into a dialogue with Eskom to see how the municipality can settle the debt.

Tsolela said the municipality has since sought the intervention of the MEC of the Department of Cooperative Governance and Traditional Affairs (Cogta), Nono Maloyi.

He, at the time, said the power utility has not gained control of the city's account due to the engagement and intervention of Cogta, held in Mahikeng on Wednesday.

"We owe Eskom an amount of R1.5 billion, which we are trying to service. Our biggest problem is the collection rate at which our people are paying for services. We are unable to deal with the debt as well as the current account of Eskom.

"Most of the time we find ourselves having to underpay Eskom and that is not helping because it actually grows the debt we have with Eskom.

"We have engaged in a number of meetings with Eskom, trying to come to an arrangement, but a stumbling block is that we are unable to keep up the monthly account. It is always underpaid," said Tsolela.

OFM News