GMM moves from being dysfunctional to a low-risk municipality
“The municipality dysfunctionality existed for a couple of years until this financial year when the review was done, and we were moved to the ranks of a low-risk municipality.”
Govan Mbeki Municipality (GMM) Mayor Nhlakanipho Zuma said the municipality has moved from dysfunctional to low risk.
He presented the Co-operative Governance and Traditional Affairs (CoGTA) report on the status of the municipality at the council meeting held in council chambers on November 30.
Zuma said the municipality was placed under administration in 2019 because of its underperformance in financial recovery. He said it has since improved in other areas.
“The municipality dysfunctionality existed for a couple of years until this financial year when the review was done, and we were moved to the ranks of a low-risk municipality.
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“We were assessed on several points, including basic service delivery, sound financial management and local economic development.
“We acknowledge that progress was made, although more effort should be made to reach a dream status,” said Zuma.
The DA said the provincial government had moved all the dysfunctional municipalities to low-risk municipalities for election purposes.
“Nothing has changed in our municipality. Our communities still live without water and electricity for days.
“Our municipality is still bankrupt and unable to pay the Eskom and Rand Water accounts that balloon every month,” said James Masango, the DA councillor.
The EFF welcomed the report and valued the work of the opposition parties in holding the municipal executive accountable.
“This is because our municipality is a hung municipality without a party having a majority rule, and every decision needs us all,” said Wilson Chauke, the EFF councillor.
The African Residents Party (ARP) president, John Mahlangu, said his party does not take anything from Cogta seriously.
“The report on the improvement of our municipality from Cogta is not the true reflection of what is happening on the ground.
“The community still live with raw sewage, our roads are not in good condition, and the municipality is failing to complete projects,” said Mahlangu.
Early this year, Zuma told the council that the municipality was in distress, and said the municipal finances had not improved to the required standard. He said that when approving the budget, they were at an R2.9b deficit.
Zuma also said the Municipal Finance Management Act only allows a municipality to have an unfunded budget if that municipality has a budget plan. As the GMM’s budget plan only focuses on prioritised services, and they cannot do anything else.
Zuma said at the time that there was an improvement in their payments to Eskom and Rand Water, although it was insufficient.
He said the interest alone consumed whatever the municipality paid, including the R3.4b interest for Eskom debt per annum.
