Ricochet News

'Morally bankrupt ANC destroying Enoch Mgijima Municipality with R1 billion write-off'

Mar 16, 2018
'Morally bankrupt ANC destroying Enoch Mgijima Municipality with R1 billion write-off'

The African National Congress (ANC) in the Enoch Mgijima Local Municipality has run the municipality into the ground and is now trying to write off a total of R1.2 billion, the Democratic Alliance (DA) has said.

"These proposed write-offs include R476 million in unauthorised expenditure, R445 million in irregular expenditure and R330 million in fruitless and wasteful expenditure," says Terri Stander MP - DA Eastern Cape Enoch Mgijima Constituency Leader.

"Also included in the write-off is R1,8 million that was paid to 8 ANC councillors in 2017. These councillors were illegally appointed in a full-time capacity.

"The finances of the municipality are in tatters and it had to apply for an overdraft of R40 million to pay salaries last month. It currently owes Eskom R60 million and also misappropriated R40 million of its Municipal Infrastructure Grant (MIG) to fund operating expenses."

Stander  said that her oversight visits have exposed "the devastating impact of these financial woes" on the public. She said:

• Creditors’ businesses risk closure, and they refuse to service Municipal vehicles and equipment. These now stand idle;
• Residents and businesses regularly suffer damaging water and electricity outages;
• Roads and drainage systems are crumbling; and
• Sewerage runs in the streets – once even near a school.

"When a Municipality is on the brink of bankruptcy and collapse, it is unconscionable that the ANC tries to write off the people’s money lost through maladministration, and stolen by ANC councillors," Stander added.

"The DA will not rest until the municipality recovers all unauthorised, irregular, and fruitless and wasteful expenditure in terms of section 32 of the MFMA and ensures that the 8 illegally appointed councillors pay back the money they received."

"I have written to Fikile Xasa, Eastern Cape MEC for Cooperative Governance and Traditional Affairs, requesting that the Enoch Mgijima Local Municipality be put under administration."

Click here to view the letter.