In 2021, the Democratic Alliance (DA) in government in Mogale City made a bold move by settling a R100 million overdraft and capping it in 2022 at R70 million. This was done with the intention of reducing the facility further in subsequent years, to ensure Mogale City could move out of debt and only use the facility for contingency or emergencies.
However, in July 2024, the ANC/EFF/FF+/PAC/ATM/IFP parties reinstated the R100 million overdraft, citing service delivery as the motivation. Sadly, over R60 million has been spent, yet essential services continue to deteriorate.
Non-functional traffic lights and streetlights, the absence of road markings, a closed landfill site due to non-compliance, failing sewerage systems and old water infrastructure are but some of the issues the municipality now faces.
Yet, the municipality has been able to purchase two brand new BMW Sports Utility Vehicles (SUVs), at well over a million rand each, for the executive. Spending money on politicians’ luxury, while racking up R60-million in overdraft is inexcusable.
Previously, when the DA had the Mayorship, we demonstrated prudent financial management during our 16-month tenure, delivering services while also reducing overdraft debt and alleviating the burden on ratepayers. This, has now changed, to the detriment of Mogale City.
The municipality is indebted more than ever, and basic service provision has all but collapsed.
The Municipal Systems Act is quite clear on what a local government is supposed to do, yet Mogale City under the ANC-coalition is not doing this:
“Objects of local government
152(1)(b) The objects of local government are—
(a) to provide democratic and accountable government for local communities;
(b) to ensure the provision of services to communities in a sustainable manner;
(c) to promote social and economic development;
(d) to promote a safe and healthy environment; and
(e) to encourage the involvement of communities and community organisations in the matters of local government.
A municipality must strive, within its financial and administrative capacity, to achieve the objects set out in subsection (1)”
The DA remains committed to ensuring that the people of Mogale City receive service delivery, and we are examining all avenues to ensure that those responsible for the collapse, and mismanagement of funds are held to account.