Modimolle bailout

Mayor Marlene Van Staden this week disclosed that the Limpopo Provincial Government had decided to allocate R70-million in financial assistance to the Modimolle-Mookgophong Local Municipality.

The new development is a direct sequel to a series of threats by Eskom to withdraw power supplies from the municipality.

Earlier in the year the Limpopo Provincial Legislature placed the embattled municipality under administration, in terms of section 139 of the Constitution of the Republic of South Africa.

At the time it was reported that the municipality was “technically bankrupt” and that it owed the power utility upwards of R260-million.

The debt towards Magalies Water Board exceeded R12-million.

Van Staden said the provincial authorities were requested to pay the municipality’s creditors directly, among them Magalies Water, Eskom, the Sheriff, the South African Revenue Services, and
the Auditor-General.

The Modimolle-Mookgophong Local Municipality has been receiving assistance from the provincial government since the month of June, in terms of specifications of the Constitution.

The mayor said she had consistently maintained that the large amount of debt inherited from the two former municipalities had severely constrained the municipality’s ability to deliver quality
services.

“Although the much-needed financial assistance is no quick-fix for the municipality’s problems, it will go a long way towards alleviating the pressure from creditors, and will allow the
municipality to accelerate the delivery of quality services while implementing its financial recovery plan,” Van Staden said.

She said with the financial assistance and the right controls in place, Modimolle-Mookgophong had the potential to become a sustainable and thriving municipality.

— The BEAT