Bankrupt municipality’s R735-million electricity plan raises hopes and eyebrows
First published in
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Plans by the Little Karoo municipality of Kannaland to enter into a R735-million, 25-year electricity provision deal with a private company are being challenged in court. The bankrupt municipality has been under administration by the provincial government for four years.
ANC and Independent Civic Organisation of South Africa (Icosa) councillors in the municipality, which covers Ladismith, Zoar, Calitzdorp, and Van Wyksdorp, are fighting a financial recovery plan imposed by the Western Cape provincial government.
Among other things, they want to enter into a R735-million deal with private company Inovasure. But according to papers before the court, the municipality has debts of R91-million, of which 90% is overdue. The Kannaland municipality’s entire annual budget of R174-million is currently unfunded.