Place Victor Khanye Local Municipality under administration
Victor Khanye Municipality remains in a dire state as its joint debt for Eskom and Rand Water sits at R498 million as revealed in the Section 71 Report ending August 2020.
We, the undersigned residents calls Victor Khanye Local Municipality to be placed under full administration as the Municipality remains in a dire state as its joint debt for Eskom and Rand Water sits at R498 million as revealed in the Section 71 Report ending August 2020. Due to the ineffective billing system, the municipality is owed R813 million by residents for the distribution of services and this has resulted in the municipality being unable to collect sufficient revenue to pay off creditors. The Municipality is also having a hard time to pay creditors within the 30 day period as required by Section 65 (2) (e) of the Municipal Finance Management Act, and much of which has to do with an inability to draw an income. This is further exacerbated by the fact that for the month of August 2020, the Municipality projected to operate at a deficit of R59.7 million of the original budget. In addition to the massive debts owed to Eskom and Rand Water and budget shortfall, the Report also found the following:
- R29 million spent on sporting facility renovations;
- A 36-month security service contract worth R31.7 million from the Sakhile Ezweni Group;
- A 61% average in rate collection;
- Overspent by 105% on EPWP which amounts to R2.7 million; and
- Its organs of State owe R15.3 million.
16766 needed to reach 20000
We, the undersigned residents calls Victor Khanye Local Municipality to be placed under full administration as the Municipality remains in a dire state as its joint debt for Eskom and Rand Water sits at R498 million as revealed in the Section 71 Report ending August 2020. Due to the ineffective billing system, the municipality is owed R813 million by residents for the distribution of services and this has resulted in the municipality being unable to collect sufficient revenue to pay off creditors. The Municipality is also having a hard time to pay creditors within the 30 day period as required by Section 65 (2) (e) of the Municipal Finance Management Act, and much of which has to do with an inability to draw an income. This is further exacerbated by the fact that for the month of August 2020, the Municipality projected to operate at a deficit of R59.7 million of the original budget. In addition to the massive debts owed to Eskom and Rand Water and budget shortfall, the Report also found the following:
- R29 million spent on sporting facility renovations;
- A 36-month security service contract worth R31.7 million from the Sakhile Ezweni Group;
- A 61% average in rate collection;
- Overspent by 105% on EPWP which amounts to R2.7 million; and
- Its organs of State owe R15.3 million.