Piet Liebenberg
Our Times, 11 November 2011
THE embattled Kouga local municipality is one of the top 20 debtors of the Nelson Mandela Metro with an outstanding debt amount of more than R22-million owing for water.
However this was only brought to the attention of the Metro’s council recently.
Kouga’s debt was controversially listed on the Metro’s green papers, thus considered to be confidential.
Now theMmetro councillors are asking why their residents should subsidise the Kouga while they are desperately short of funds themselves and are battling to meet service delivery challenges.
They are insisting the MEC for local government, Mlibo Qoboshiyane, urgently intervenes in the affairs of the Kouga.
A source within the Metro, who prefers to remain anonymous, says for a period of seven months they could not get the Kouga municipality to respond.
Various attempts to get Kouga officials around a table to discuss the mounting debt situation were ignored.
The source says Kouga’s debt is well documented and they are experiencing serious liquidity problems.
Meanwhile Kouga is said to be negotiating with all its creditors.
After discussions with the municipality’s chief financial officer and councillor Vernon Stuurman, who serves on the finance portfolio committee, Kouga promised to pay for any water delivered and an additional amount of R500 000 per month for outstanding debt.
It will thus take the Kouga nearly four years to repay the debt.
In his response to questions Kouga municipal spokesman Mfundo Sobelo said, “We do not have any arrears with Eskom and we are up to date with our account.
“We have an arrangement with the Metro for our water account.
“We have developed a very good relationship with both institutions [Eskom and the Metro] and there should be no reason for any worries in the foreseeable future.”
THE embattled Kouga local municipality is one of the top 20 debtors of the Nelson Mandela Metro with an outstanding debt amount of more than R22-million owing for water.
However this was only brought to the attention of the Metro’s council recently.
Kouga’s debt was controversially listed on the Metro’s green papers, thus considered to be confidential.
Now theMmetro councillors are asking why their residents should subsidise the Kouga while they are desperately short of funds themselves and are battling to meet service delivery challenges.
They are insisting the MEC for local government, Mlibo Qoboshiyane, urgently intervenes in the affairs of the Kouga.
A source within the Metro, who prefers to remain anonymous, says for a period of seven months they could not get the Kouga municipality to respond.
Various attempts to get Kouga officials around a table to discuss the mounting debt situation were ignored.
The source says Kouga’s debt is well documented and they are experiencing serious liquidity problems.
Meanwhile Kouga is said to be negotiating with all its creditors.
After discussions with the municipality’s chief financial officer and councillor Vernon Stuurman, who serves on the finance portfolio committee, Kouga promised to pay for any water delivered and an additional amount of R500 000 per month for outstanding debt.
It will thus take the Kouga nearly four years to repay the debt.
In his response to questions Kouga municipal spokesman Mfundo Sobelo said, “We do not have any arrears with Eskom and we are up to date with our account.
“We have an arrangement with the Metro for our water account.
“We have developed a very good relationship with both institutions [Eskom and the Metro] and there should be no reason for any worries in the foreseeable future.”
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