Thabazimbi municipality needs R25m injection

THABAZIMBI – The Executive Council resolved that a transactional loan of R25 million be provided to assist Thabazimbi Local Municipality.

Provincial Government Spokesperson, Phuti Seloba, said the money will ensure that Thabazimbi Local Municipality is in a sound financial state.

He said the amount will be allocated to the municipality during the 2016/17 adjustment budget process to CoGHSTA for administration purposes.

“The Executive Council resolved that the current intervention in Thabazimbi in terms of Section 139(1) (b) of the constitution of the Republic of South Africa be extended for a further period ending in March 2017, and that the MEC for CoGHSTA, Makoma Makhurupetje, be delegated to communicate such decision to the Thabazimbi Council, and the Executive Council resolved that the Provincial Treasury, with the assistance of CoGHSTA, should make a thorough assessment on the financial viability of the identified Municipalities in the Province, and to develop a turnaround plan to improve their financial state.”

Limpopo DA leader, Jacques Smalle said it is clear that the administrator appointed by the MEC was not only inept at turning the finances of Thabazimbi around, but the dire situation regressed under his watch.

He said no effort was made to engage with service providers and creditors in a meaningful way to attempt to settle the municipality’s debt which was in excess of R250 million.

“The damages incurred in interest charged and legal fees could have been limited if the administrator and officials were proactive and responded honestly to the municipality’s financial woes,” he said. “The DA and its coalition partners in the Thabazimbi municipality are currently in negotiations with the execution creditors, to find workable solutions to settle the municipality’s debt. It is also clear from the financial records that MIG grants were utilised to pay salaries, instead of service providers and creditors, which is highly irregular and has a negative impact on service delivery,” he continued.

“It is unacceptable that the municipality’s financial statements were not submitted timeously and it seems that no action was taken by the MEC for COGHSTA or the MEC for Treasury to compel officials to comply.

During a council meeting on 1 September 2016, a resolution was taken to terminate the services of two senior officials responsible for the financial management, who now according to the MFMA and PFMA have between seven and 14 days to show cause as to why they should stay on in their positions,” he said.

“Our vision for South African is that government must always act honestly, transparently and in the best interest of the people by paying creditors timeously, collecting revenue and delivering quality services,” said Smalle.

crime@nmgroup.co.za