The Freedom Front Plus (VF Plus) has noted that the Mayor of the Emfuleni Local Municipality (Evaton, Sebokeng, Vaal Oewer, Vanderbijlpark, Vereeniging), Sipho Radebe, is seemingly overjoyed by the resolution of the deadlock between the Municipality and Rand Water over water debt.
In terms of the agreement, Emfuleni paid R660 million to Rand Water to lift the bulk water supplier’s attachment of the Municipality’s current account.
What the Mayor failed to disclose, though, is that the R660 million was taken from the Municipality’s grants for municipal infrastructure, water infrastructure and equitable share.
These grants are earmarked for, among other things, addressing backlogs in basic infrastructure in needy communities and providing free basic services to indigent residents.
Seeing as Emfuleni has now used these funds to appease Rand Water, the Municipality will have to find alternative ways to generate funds to meet its obligations to indigent communities.
Residents are already required to settle their water and electricity accounts directly with Rand Water and Eskom, so at the moment, the Municipality only generates revenue from refuse removal and property rates.
Emfuleni is bankrupt, owes billions and cannot pay its creditors. This agreement will not resolve its financial problems – it is merely a temporary reprieve until the next attachment of the Municipality’s current bank account.
Reaching the agreement is nothing but political theatrics in the run-up to next year’s local government elections.
Emfuleni’s only hope is to oust the ANC at the polls.
