Sixteen-year-old R14.6-million KwaDukuza Municipality debt raises concern in council
The debt is made up of a number of different historic disputes between two municipalities, mostly surrounding water and sewerage service supply.
A 16-year-old KwaDukuza Municipality (KDM) debt of R14.6-million drew bipartisan concern in KwaDukuza council last week.
The debt, owed to the iLembe District Municipality, has accumulated since 2007 and has steadily become untenable for KDM, one of four local municipalities that fall under the iLembe district.
It has come under increased scrutiny from iLembe recently as the municipality seeks to recover funds from its considerable list of debtors.
Originally raised in an executive committee meeting in June, the item drew questions from councillors on both sides of the aisle when presented by acting chief financial officer (CFO), Mthandeni Nene.
“If the debt was from 2007, why is it only being brought to council now? We can’t just note this item and move on,” said Democratic Alliance Ward 22 councillor, Privi Makhan.
Independent Alliance PR councillor, Ebrahim Kolia, called it a “serious mess”.
The R14.6-million is made up of a number of different historic disputes between the two municipalities, mostly surrounding water and sewerage service supply.
Firstly, a debt was incurred by KDM when managing the KwaDukuza Clinic, which has since been handed over to the KwaZulu-Natal Department of Health.
A dispute over who should settle the outstanding debt remains unresolved and the account has been collecting interest ever since.
The second debt concerns the KwaDukuza Civic building which accumulated as a result of a faulty water metre.
Both municipalities agreed to meet and resolve the issue in 2020, but key officials did not turn up and the account has been left unattended while accumulating interest.
“We have failed miserably to look after our creditors and debtors,” said African National Congress councillor and council speaker, Dolly Govender.
“What disappoints me is that the Municipal Finance Management Act provides clear guidelines on payment deadlines. This is just a copy paste item. Are we going to become a failed municipality?”
The final dispute surrounds the controversial Rocky Park Housing Project, long a sore subject for KDM.
The Rocky Park account was transferred to KDM in 2020 with an opening balance of just over R1.2-million.
It has since grown to more than R4.4-million, despite the municipality consistently saying that all residents of the project are living there illegally.
“They enjoy free water, sewer and electricity supply from installed municipal infrastructure, all at the expense of ratepayers’ monies,” said ActionSA PR councillor, Nel Sewraj.
“The water and sewer debt has surged by 350% in three years.”
Nene said the issue was raised at executive level of the municipality in 2021 but that no moves had seemingly been made to respond.
He said his office had since instituted a monthly repayment of R150 000 to service the debt.
“We believe that KDM should not settle this debt without first demanding a verification of debt from iLembe. This will ensure that the debt is accurate and properly belongs to KDM,” said Sewraj.
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