West Rand District Municipality spends 70 per cent of gross income on salaries
• Dennis Pretorius, DA Spokesperson for Finance in the District Municipality writes:
The municipal manager at the West Rand District Municipality has allegedly committed the municipality to two loans without obtaining prior approval from the municipality.
The loans appear to be an attempt to bridge the municipality’s cash flow dilemma.
The Municipal Manager allegedly arranged bridging advances of R5 million and R7 million on the 10th and 24th of May 2017, respectively. This was done without obtaining council approval as is required by section 45(2) of the Local Government: Municipal Finance Management Act 56 of 2003.
The DA will request the Mayor to provide reasons why the Municipal Manager should not be suspended pending an investigation into these allegations.
The dire situation at the West Rand District Municipality is reflected in the annual financial statements of the municipality. The statements clearly indicate that the municipality is bordering on bankruptcy. The municipality has very few resources yet it spends nearly 70 per cent of its gross income on salaries.
The DA has warned the municipality that it is heading for a cash flow crisis amid poor financial management. The municipality has drained its accumulated resources over the last few years and is now scurrying to lend money.
It seems that the ANC cannot commit itself to spending money on services and governing well. The DA will continue to hold the ANC accountable as we are the only party that can take South Africa forward.
