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Issues of instability in governance, finance and service delivery plague KZN municipalities
By Vernon Mchunu
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AT LEAST nine KwaZulu-Natal municipalities, were in distress with issues of governance and financial instability, Co-operative Governance and Traditional Affairs (Cogta) MEC Sipho Hlomuka has revealed.
This comes in the wake of an independent report that showed the financial state of the province’s local municipalities was on a downward spiral, over a five-year period.
With the added economic harm caused by Covid-19 expected to take its toll on municipal financial stability, the devastating impact of this downward trend on citizens is expected to be felt in about a year’s time, according to the latest Municipal Financial Sustainability Index (MFSI).
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The King Cetshwayo District municipality is among three in the province to have settled money owed to the power utility.
eDumbe Municipality paid its outstanding R6.2 million, and Abaqulusi R36.1 million.
KZN municipalities reduce Eskom debt thanks to CoGTA
Eskom says they now have a recipe that works
which will not only sustain, but also enable the economic growth of KZN and its municipalities.
The debt of KZN municipalities has been significantly reduced thanks to Eskom KZN and the support given by the KZN Department of Cooperative Governance and Traditional Affairs (CoGTA).
In a statement, Eskom acknowledged the significant role played by KZN CoGTA MEC, Sipho Hlomuka and his team after they released their substantial report on the progress that has been made.
Municipal debt took centre stage when efforts by Eskom to collect revenue from owing municipalities were met with several challenges and were generally unsuccessful. Negotiations for payment arrangements mostly faltered or if successful, they were not followed through. This put an immense burden on Eskom as its revenue was constrained.