Helm says the district municipality with a 2018/2019 budget of more than R1,8 billion owes creditors over a R1 billion.
Helm further said that a section 52(d) report for the first quarter ending September 30, 2018 shows that the budget for the 2018/19 financial year is R 1 803 391 581 and the outstanding creditors is stated as R 1 005 525 000. “The bigger part of the creditors is older than 120 days.
Bulk water alone stands at R 882 959 000 outstanding.
Outstanding debtors is R 479 524 000 with little attempt from MDM to recover the long outstanding debtors which is mostly local municipalities that didn’t pay their bulk water account. This alone is proof that the MDM is hopelessly insolvent,” said Helm. The report further reveals that the spending on repairs and maintenance is far less than the 25% budgeted for. “That means that the infrastructure is not maintained, that water purification plants and bulk water systems are not maintained.
“How long before raw sewage water reaches consumers when water purification plants failed due to lack of maintenance? “How long before more communities run out of water because maintenance is not being done?” asked Helm.
She further said that R 96 million was budgeted for the financial year and up to date only R 11 million was spent on repairs and maintenance.
Helm said it was not for the first time the municipality experienced financial difficulties.
The Final Management Report of the Auditor General for June 30, 2017 indicated that the municipality’s liabilities exceeded its total assets by R 886 339 820.
The HERALD had not received a comment from the Mopani District Municipality.
