The Democratic Alliance (DA) in the Merafong Local Municipality is deeply concerned about the alarming increase in Merafong’s debt to creditors. According to the municipality’s own Section 71 financial reports, the debts owed to creditors have surged to over R2 billion as of 30 June 2024, up from R1,3 billion as of 30 April 2024.
The amount owed to sundry creditors has also ballooned. Rand Water has seen a significant increase from R655 million in June 2023 to over R1 billion in June 2024. Similarly, the debt owed to Eskom has ballooned from R858 million in April 2024 to nearly R920 million in June 2024.
Despite numerous warnings and calls for intervention by stakeholders like the DA, the Merafong Ratepayers Association, and AfriForum, the Merafong Local Municipality has taken no substantive action to curb this escalating debt crisis. The residents of Merafong are paying the price for this negligence, facing the risk of interrupted water and electricity services, which are vital for daily living and economic activity.
The DA is committed to holding the current administration accountable for this gross mismanagement.
We demand the following immediate actions:
- Engage in immediate negotiations with key creditors such as Rand Water and Eskom to restructure the existing debt and establish more manageable repayment terms.
- Implement cost-cutting measures and enhanced financial management practices. Key actions include revamping debt collection methods, establishing effective communication channels between departments like Revenue and Energy to ensure efficient debt collection, and downsizing municipal resources, such as the workforce, while awarding more cost-effective contracts.
- Strengthen internal financial controls and establish a dedicated Section 79 oversight committee, chaired by a councillor from an opposition party, to regularly monitor financial activities and ensure compliance with budgetary guidelines.
- Offer regular, transparent updates to the residents of Merafong regarding the municipality’s financial status and the measures being taken to address the crisis. This should include regular public meetings by the municipality’s management.
The DA will not stand by while the current administration continues to neglect its responsibilities. We will be vigilant in monitoring the situation and will explore avenues to hold those in power accountable. The people of Merafong deserve better, and we are committed to ensuring that their needs are met and that their municipality is sustainably built up, not recklessly broken down.