The DA in KZN has written to KZN COGTA MEC Nomusa Dube-Ncube requesting an urgent meeting with her to explain the sinking financial situation in Amajuba District.
The municipality includes Newcastle, Dannhauser, Hattingspruit and Utrecht.
“This Municipality is so bankrupt that it cannot even afford to pay its staff monthly salaries. During our investigation, we have found that the situation is so dire that salaries are now paid through conditional grants,” said DA provincial leader, Zwakele Mncwango
During this month ending October, the Municipality has R400 000 in its bank account while the monthly salary bill total to R7 million excluding 3rd party payments. I
“It is astonishing that the Municipality has had to use R12 million from different conditional grants to cover salaries for October 2015. The DA has also reliably learnt that if the equitable share of R40 million is not received before November 25, the municipality won’t able to pay November salaries.
“Because of this disastrous mismanagement of funds to the highest degree by year end, the municipality will have astounding deficit of R48 million.
“This revelation is true evidence of a failing government led by the ANC in this Municipality, the province and the country as a whole. The governing party has lost complete control of its municipalities. It shows a lack of leadership and blunt mismanagement of taxpayer’s funds. It is not fair for the people of Amajuba to be kept in the dark over their sinking municipality.
“I have asked MEC Dube-Ncube to intervene under section 139 of the Constitution to put Amajuba Municipality under administration.
“I have further requested that she provide me with two forensic reports; the Thabani Zulu (investigation of 2009-2011 status) report and Ernst and Young report (Investigation of 2014) which were strangely not tabled before a full council meeting.
“If the meeting between myself and the MEC does not take place soon, it will show reluctance from the MEC to work on solving the problem. The DA will make sure that the people of Amajuba are not deprived of an opportunity to know what is going on in their Municipality. ”
