The lack of accountability and effective revenue collection strategy has resulted in debt to creditors in the City of Mbombela doubling within a space of 10 months.
According to the local municipality’s recent budget performance statement, between January 2018 and October 2018, the amount of money which was owed to creditors increased from R437 million in January 2018 to R829 million in October 2018.
The increase is concerning as its shows that the ANC-led municipality is not able to settle its accounts within the prescribed 30 day period as required by the Municipal Finance Management Act (MFMA).
The failure of the municipality to stick to contractual agreements and paying services providers on time has disastrous consequences on service delivery and often-times the municipality has found itself on Eskom’s and Rand Water’s disconnection list.
They currently owe Eskom and Rand Water R307 million and R68.6 million respectively.
Service delivery in the municipality is further crippled as many contractors have abandoned projects due to non-payment, and in January 2019 it took the threat of leaving animal carcasses at the municipal offices in order to enforce an agreement between the municipality and the Society for the Prevention of Cruelty to Animals (SPCA).
The struggles facing the municipality could be attributed to a number of reasons – one of which has to do with the amount of outstanding debtors and inaccurate billing systems: as at October 2018, consumers owed the municipality R377 as a result of failure to ensure revenue collection and improve the financial management.
The consumer payment rate in Mbombela is very low because the billing system that has for the past year caused nothing but havoc among residents.
Only a DA government can fix the neglect, financial mismanagement, and corruption which came with the ANC in municipalities.
Annual Auditor General (AG) reports have shown improved financial management and better service delivery since the DA took over governance of Midvaal, Thabazimbi, Kouga, Modimolle, City of Johannesburg and Tshwane.
The DA can do the same for the City of Mbombela municipality through stopping corruption, delivering better services and building One South Africa for All.