Local News
Millions spent on bailing out FS municipalities─── CATHY DLODLO 12:12 Sat, 25 Mar 2017
Sisi Ntombela
Bloemfontein - Bailing out cash-strapped Free State municipalities cost the provincial Department of Cooperative Governance and Traditional Affairs (Cogta) more than R57 million during the 2016/17 financial year.
| This is according to MEC Sisi Ntombela. She said during the tabling of her budget speech in the Free State Legislature as the oversight department they are obliged to assist struggling municipalities. She said the expense was accumulated by bailing out seven municipalities – Xhariep, Naledi, Masilonyana, Nala, Dihlabeng, Sesotho and Mafube. Municipalities were facing threats of power disconnections by the electricity giant, Eskom, because of their outstanding electricity debt. The crisis was averted when provincial government intervened and helped municipalities to make a sizeable downpayment and sign a payment agreement for the balance with Eskom. Ntombela says a reduced amount of just more than R20 million has been budgeted for the 2017/18 financial year for assisting municipalities in the province. She said the Masilonyana- and Mafube municipalities will, however, be on her department’s priority list because they are experiencing serious service delivery problems. OFM News |
