Mpumalanga municipalities drown in debt due to corruption and lack of skills

Mr James Masango (provincial leader: DA) at a recent event.

The Democratic Alliance (DA) in Mpumalanga recently said municipalities are drowning in debt due to corruption and lack of skills.

A press release also said these municipalities had a debt of R8,6-bil by 31 March of which R5-bil (85%) was contributed to households referring to the Section 71 report as required by the Municipal Finance Management Act (MFMA).

The failure to implement revenue improvement plans resulted in Lekwa and Dipaleseng Municipalities collecting less than 60% of the revenue needed to deliver service.

According to the statement, Lekwa collected 45% while Dipaleseng only collected 32% of its debt.

In addition, the failure to generate an income by municipalities resulted in R4-bil being owed to entities such as Eskom.

Altogether R2,1-bil was owed for bulk electricity purchases, while R9 900-mil was owed for bulk water purchases.

The Standerton Advertiser sent an e-mail to Ms Thobeka Mtshiselwa, communications manager of the Lekwa Municipality, on 16 August at 3.10pm and again on 17 August at 2.37pm.

Answers were sought on the above allegations, but no reply was forthcoming.

The Standerton Advertiser will keep readers updated.

  AUTHOR
Alida Lake

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