Three Rivers’ inclusion in Midvaal is ‘daylight-robbery from ELM’
The demarcation matter is also likely to become a national issue and be taken up by the National and Provincial Government, especially the Cooperative Governance and Traditional Affairs (COGTA) departments, say political sources in Emfuleni.
Emfuleni Local Municipality (ELM) has appealed and objected to a decision by the Municipal Demarcation Board (MDB) to incorporate one of its most affluent revenue-generating areas, Three Rivers in Vereeniging, into the neighbouring Midvaal Local Municipality (MLM).
Three Rivers alone generates up to R42 million per month in revenue for the embattled ELM, in addition to boasting an almost perfect revenue collection rate of about 99 percent, according to municipal documents.
The Sedibeng District Municipality, of which Emfuleni is a part, is also set to object to the re-demarcation.
If upheld, the MDB decision earlier this year could deliver a financial death blow to ELM, which is already reeling from falling revenue collection rates, financial and budgetary burdens, and is entangled in revenue restructuring efforts with both Eskom and Rand Water.
“This would be blatant daylight robbery of ELM if this decision is allowed to go ahead,” said a source within the ELM administration.
The MDB decision to hive off Three Rivers to Midvaal has already been published in the Provincial Gazette, making it official. However, those with objections had a grace period of 30 days to appeal.
Complicating matters are issues of political power balance.
Three Rivers Ward One in Vereeniging is a stronghold of the Democratic Alliance (DA) and municipal infrastructure ownership challenges in an area with one of the highest revenue collection rates in Emfuleni, according to ELM.
Electricity infrastructure is particularly crucial, as electricity sales generate most of ELM’s income.
Much of Three Rivers’ dependable electricity revenue is generated by ELM’s revenue-spinning smart meter programme, and questions of ownership and management of the project are now also being raised.
ELM spokesperson Makhosonke Sangweni confirmed this week that ELM had objected to the MDB decision based on a vote by the ELM Council to do so. The MDB objection or appeal process closed on 8 February 2024.
“The objections received will then be assessed after the closing date,” said MDB
spokesperson Barileng Dichabe.
