Note to Editors: Please find attached soundbites in English and Afrikaans by Cllr Johannes Le Grange.
The DA in Matlosana Local Municipality is not surprised that the High Court granted relief to Eskom to attach the municipality’s bank account in a bid to recover R1 billion in bulk electricity debt. It is now more than evident why a financial recovery plan must be implemented.
Yesterday, Council met to deliberate the implications of the court order on the ability of the municipality to ensure that it meets its service delivery obligations towards residents.
The DA has repeatedly warned the ANC government of Matlosana that the financial situation is dire and proposed an implementable, thorough financial recovery plan, but the ANC chose to disregard our constructive engagements.
Matlosana is a delinquent debt offender, having deliberately failed to honour its R400 million payment agreement with Eskom to reduce the debt burden two years ago, which now puts the delivery of services at risk.
The only way to stabilise Matlosana’s finances is to implement the DA’s financial recovery plan. It includes:
• Improve revenue collection. Approximately 80 000 accounts are not being serviced and debt recovery should be implemented and services should be suspended to delinquent account holders;
• The roll-out of prepaid electricity and water meters;
• Establishment of a special task team to drastically reduce electricity losses, illegal connections and investigate municipal employees implicated in meter tampering;
• An outreach program to identify and assist with the registration of indigent benefits;
• Stop outsourcing of security personnel, refuse removal contractors, landfill site contractors, electrical and mechanical contractors, vehicle leasing contractors, meter reading contractors and all unnecessary consultants with inflated costs;
• Conduct a qualifications and skills audit in the financial department to upgrade professional financial decision making, accounting, reporting and overall supply chain management;
• Minimise wasteful expenditure and act against corruption.
Despite the dire financial situation, leaving Matlosana on the verge of collapse, Mayor James Tsolela and Speaker Stella Mondlane have ensured that new luxury vehicles to the value of R1,4 million are bought for their benefit instead of allocating every available cent towards debt repayment and the improvement of service delivery.
It is clear that the ANC in Matlosana is only interested in extracting benefits and financial gain for themselves instead of putting people first.
The DA in Matlosana will do everything in its power to ensure that service delivery does not become a casualty because of the ANC’s financial mismanagement.