Ermelo in the sick bay
Economy of Ermelo set to take huge knock if Eskom follows through with intended power interruptions.
The Ermelo Business Association (EBA) held a meeting on Friday at which business owners were informed of the dire situation the Msukaligwa.
Municipality currently finds itself in.
This comes after Eskom recently announced that as from June this year, bulk power supply to defaulting municipalities will be cut by up to eight hours a day during peak times.
Mr Athol Stark, EBA president, said this was not an idle threat from Eskom..
“The R91 million owed to Eskom and R198 million owed to the Rand Water Board represent only part of the municipal challenges,” he said.
“The municipality has failed dismally to keep control of its finances as well as maintenance of the services infrastructure and has allowed the town to fall into a state of general disrepair.”
Coupled with the proposed Sanral bypass, this has the potential of plunging Ermelo into an economically bankrupt third-level town.
“Already big business franchises are looking to pull out of Ermelo and those thinking of investing in Ermelo are adopting a wait-and-see approach,” said Mr Stark.
He said the EBA had on occasion offered support to the municipality in the form of financial and equity expertise, but this was declined.
It is alleged that between 40 and 50 per cent of households in Ermelo do not pay for services.
This begs the question as to how the municipal salaries are paid. It is rumoured that the Municipal Infrastructure Grant (MIG), funded by central government and intended for maintenance of the infrastructure, is used to pay or augment the salaries of municipal officials.
“Government has now revoked this grant, which leaves the municipality with a very serious problem,” he said.
A public meeting will be called in the near future to find a way to address the problem and persuade the municipal hierarchy to get their house in order.
