This is according to multiple sources and a statement received by the Herald. However, Lovers Maenetja, spokesperson of the GLM denies this, saying that it is only rumours. A downgraded status has a significant impact and repercussions, a source told the Herald. It means lower salaries for directors, a freeze of vacant positions, no funding of own projects, a reduced Municipal Infrastructure Grant (MIG), and a reduced equitable share.
“This will have a direct negative impact on the rollout of much-needed services, especially to those who need them most as a result of a reduced budget,” the statement said. According to the statement, some of the causes of the downgrade are said to be poor or lower revenue collection, corruption, maladministration, failure to implement recommendations from the Auditor-General, a drop in population, and deployment of incompetent personnel into key and strategic positions.
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It is further alleged that the majority of highly paid staff at the municipality resides outside of the GLM in the Greater Tzaneen Municipality (GTM) area, including the mayor. “This is a typical example of how the municipality loses revenue. If the municipality cannot even attract its leadership to live there, who else can be attracted to stay in the Greater Letaba municipal area?
Modjadjiskloof has one of the oldest decaying infrastructures and looks like an abandoned ghost town without any prospect of new projects to attract new business to boost revenue.” It is alleged that most buildings and land are in the hands of one well-known and politically connected businessman who is an obstacle to much-needed development. “He has succeeded in blocking development with the help of comrades,” the statement read.
Maenetja insisted the GLM has not been downgraded. “The municipality has grade 3 category B status. The equitable shares, grants, and population remain the same. We dispute any allegations that are contrary to this information.” She said municipalities are graded according to their population and revenue income. “We have grade 1 metros, cities with a grade 2 status, and us with grade 3. Each grade has sub-categories.
Tzaneen is in grade 3 category A because they are a big municipality,” she said. She denied that the population has changed. “There is no information from Stats SA that our population has declined.” She said the mayor’s residence remains in Matshwi. “If you are employed as senior management at a municipality, you remain in your house as before your employment. Everyone has the right to stay in any place they feel fit to stay and not be discriminated against,” she added.
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The Freedom Front Plus provincial leader, Marcelle Maritz, said that they are concerned. “We will monitor the situation and assist channels such as COGHSTA and SALGA. The residents are the true losers as funding from the national treasury will be reduced,” she said. DA councillor in the GLM, Matome Serumula, called on the mayor and the speaker to urgently intervene.
“The municipality has in the past turned a blind eye to our suggestions. If incompetent employees are employed in strategic positions, how can quality services be expected?” he asked.