Following a failed financial recovery approach, the DA in Mpumalanga has written to the MEC of CoGHSTA, Speedy Mashilo, requesting that both eMalahleni and Govan Mbeki local municipalities be placed under administration.
During 2018, Premier Refilwe Mtshweni Tsipane placed five municipalities under provincial intervention, these include eMalahleni, Govan Mbeki, Thaba Chweu, Lekwa and Msukaligwa.
Governed by section 139 (1) (a) of the MFMA, this approach required the drafting and implementation of financial recovery plans which sought to address revenue generation and the subsequent repayment of creditors like Eskom.
Over the past six-years, the province sent financial experts to these financially distressed municipalities, constituted task teams and drafted the integrated municipal support plan. In addition to the above, the MEC also worked with these municipalities, but this intervention was unsuccessful.
These initiatives fell flat in implementation due to a lack of political will and as a result, municipal debt to entities like Eskom, Rand Water and the Department of Water and Sanitation ballooned.
Using the debt to Eskom as an example, it is evident that this debt in eMalahleni and Govan Mbeki increased from R2 309 billion and R 1 050 billion to being just over R10 billion in eMalahleni and R5.4 billion in Govan Mbeki.
Likewise, these two municipalities are struggling to generate revenue from the sale of services. Presently eMalahleni and Govan Mbeki are owed R9 649 billion and R3 645 billion respectively.
Given the above, it is evident that these two municipalities are still in a financial spiral, and this is severely affecting the delivery of services to their residents. Because of which they must be placed under administration as per section 139 (1) (b) of the constitution.
The truth of the matter is that these municipalities are battling with providing basics for residents. Therefore, it is of importance for the Mpumalanga provincial government to urgently intervene, it is unacceptable for residents to be deprived of basic services because of incompetence.