The Democratic Alliance in Mpumalanga (DA) wishes to express concern over the state of finances in eMalahleni local municipality. This is as the latest section 71 report reiterates an ever-increasing debt to Eskom, alongside an inability to draw an income.
It is extremely concerning that for the month ending June 2021, the municipality owed just over R5.5 billion to creditors, of which R5.1 billion was owed to Eskom alone. On this outstanding amount, the municipality was charged over R138 437 466 in interest.
With the above-mentioned interest charges of R138 437 466 alone, the municipality would have been able to build at-least 922 RDP houses (at R150 000 per house) in the month of June 2021.
Throughout the years, this municipality was plagued by an inherent failure to collect revenue from the sale of services such as water, electricity, refuse removal and the like. The DA thus finds it extremely concerning that despite numerous interventions which were aimed at improving revenue collection in this municipality, monies which were owed by debtors in this municipality increased to R5.7 billion as at the end of June 2021.
If the municipality was able to capitalize on monies owed to it, the municipality would have been able to settle the debt to Eskom and also improve the lives of the residents in this municipality.
Given the above, the DA will liaise with their counterparts at national requesting that the Minister of CoGTA, Nkosazana Dlamini Zuma intervenes and assist this municipality to be economically and financially viable so that they can be able to meet the service delivery priorities of their communities.
The DA understands the financial and governance challenges faced by eMalahleni local municipality – such as population growth, low infrastructure maintenance rates, low revenue collection. Hence, we ask the Minister to help them with strategies of improving their revenue collection, and to ensure that there is equitable share in revenue that will result in their long-term financial independence and viability.