The decision by the National Treasury (NT) to withhold a portion of the July equitable share from the Emfuleni Local Municipality (Evaton, Sebokeng, Vaal Oewer, Vanderbijlpark, Vereeniging) puts the Municipality under strict financial oversight.
If the Municipality fails to meet the stipulated conditions, more funds will be withheld. This will further erode service delivery and drive Emfuleni to the edge of utter financial ruin.
The Freedom Front Plus (VF Plus) repeatedly warned the Municipality that financial discipline should be restored, corruption eliminated and mismanagement urgently rooted out.
The NT made it clear that drastic steps are required to secure further state funding:
• Emfuleni must reduce its total irregular, unauthorised, fruitless and wasteful expenditure by at least 25% by 30 September this year.
• A functional disciplinary board has to be appointed to investigate financial misconduct. Accountable officials should be subjected to disciplinary action, and where necessary, civil recovery as well as criminal cases must be instituted.
• The Municipality is obliged to conclude binding repayment agreements with major creditors such as Eskom, Rand Water, SARS and pension funds. Emfuleni has repeatedly breached such agreements in the past, which only worsened its debt burden. All this while the Municipality’s bank account remains attached by Rand Water and may only be used for paying salaries and contractors.
• Mayor Hassan Mako must provide a written undertaking that Emfuleni will never again table or adopt an unfunded budget. This year, the Council adopted its seventh consecutive unfunded budget.
The Freedom Front Plus urged the Mayor to comply with the NT’s requirements. Emfuleni desperately needs these state funds to assist indigent families and deliver basic services.
It is time for a new government to assume power in the Emfuleni Municipality – a government free of corruption and maladministration that puts the interests of its residents first.
Vote for the Freedom Front Plus on 4 November to support the party that will strive to save Emfuleni from financial ruin.
