Ward 97 councillor, André Beetge stated that startling facts regarding the city’s financial position was revealed during a sitting of the eThekwini Municipal Public Accounts Committee, recently.
Beetge said, “Financial statements reflect that the municipality’s cash on hand has, for the first time in history, dropped to an all-time low of merely 30 days. This means that should the collection rate not increase from the 83 per cent in May to at least 93 per cent in June, the city wouldn’t be unable to meet service delivery expectations and/ or salary obligations. The city effectively pays for bulk services that are in turn sold to users at an average of 10 per cent margin. This being billed and collections are subsequently done 60 to 90 days thereafter. April collections (March usage and thus prior lockdown) were R1 billion down on collections for the previous month, effectively indicating that even those who were of means to pay, took advantage of the (temporary) moratorium on disconnection announced in terms of Covid-19 regulations by not making payment.”
According to Beetge, although there was a slight improvement in collections for May, the situation remains as such that the city currently finds itself in a position where it has no option but to apply for increased overdraft to a staggering R1.5 billion.
ALSO READ: Municipality insures the safety of homeless
“While the city has admitted that it’s not business as usual and that certain adoptions would have to be made against the backdrop of lost jobs. It has, however, as yet not been interrogated and disconnections will be implemented from 1 July. Those who find themselves in a position where they are unable to pay, are urged to approach the municipality to enter into payment plans timely and not to wait until such time as it is disconnected. We further want to make an urgent appeal to all residents who are able to pay to make payments in an effort to ensure that services remain available to all,” he added.
DID YOU KNOW?
Click on the words highlighted in red to read more on this and related topics.
To receive news links via WhatsApp or Telegram, send an invite to 061 694 6047
The South Coast Sun is also on Facebook, Twitter, Instagram and Pinterest – why not join us there?
Do you have more information pertaining to this story?
Feel free to let us know by commenting on our Facebook page or you can contact our newsroom on 031 903 2341 and speak to a journalist.
To receive our free newsletter click here
(Comments posted on this issue may be used for publication in the Sun)
