THE IFP in KZN has called on Cogta MEC Nomusa Dube-Ncube to use her constitutional power to place the Newcastle Municipality under administration.
According to Ratings Afrika’s latest Municipal Financial Sustainability Index, the Newcastle Municipality is one of the worst performing municipalities in KwaZulu-Natal.
National IFP Chairperson Blessed Gwala said since the new council was inaugurated in 2016, the financial position has steadily worsened, with an increase in current liabilities of several hundred million rands, while the cash available remains low.
‘At the beginning of July, the outstanding account for Eskom was R194-million as it had not been paid for six months and the agreement with Eskom was not met.
‘Over and above that total creditors stand at R407-million.
‘For the financial years of 2016/17, 2017/18 and 2018/19 the first tranche of the equitable share was used to pay the creditors of the previous year. This indicated that the budget was unfunded.
‘In spite of this, council spent the approved budget as if this money was still available. It is high time for this council to be dissolved.
‘It is a well-known fact that if it was an IFP-led municipality, the MEC would have called for this municipality to be dissolved, but because it is an ANC-led municipality the MEC is hell-bent on protecting her comrades.’
Gwala said the municipality was in dire need of competent leadership.
‘It is becoming increasingly clear that the provincial government has no answer for the governance crisis in Newcastle. The IFP has submitted written questions to the MEC to ascertain what she has done about the dysfunctional municipality, but nothing has happened,’ said Gwala.
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