Broke West Rand municipality needs a bailout but can’t get it

Gauteng Cooperative Governance and Traditional Affairs (Cogta) MEC Dikgang Uhuru Moiloa has referred to the financially stressed West Rand District Municipality as “a disaster on its own”.

According to Moiloa, the municipality is so technically insolvent that it can neither pay employee salaries nor offer the much-needed services its residents require.

Moiloa conceded yesterday that the municipality, which has used up its entire budget, cannot be bailed out by the Gauteng government in terms of section 125 of the Municipal Systems Act.

“The law is clear on this,” said Moiloa.

“It means that the district municipality cannot expect the provincial government to bail it out. It has to fix its own financial situation.

“They [municipalities] are obligated to run their business accounts in terms of the amount of money they have received from Treasury.”

The district municipality, said Moiloa, received an equitable share of its budget from National Treasury to spend on planning and other functions.

“The provincial Cogta and Treasury have now utilised all reserves to alleviate finances in West Rand for what they have incurred and there is nothing more to be done.

“But we are on top of the situation and a team constituting Treasury, Cogta and the premier’s office will be in the West Rand on Monday morning to financially assess the situation.”

The only option left to save the embattled district municipality might be for the provincial government to invoke section 139 of the constitution to dissolve the municipal administration, appoint an administrator and take over executive powers of the district for a period of six months, until there is stability.

But that could be a long process, which may require an in-depth assessment and coming up with reports for recommendations.

– brians@citizen.co.za

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