Ravi Pillay expressed concerns over Msunduzi Municipality's finances
Image: File
Five months after being appointed to lead a turnaround team for Msunduzi Municipality, former KwaZulu-Natal Finance MEC Ravi Pillay has described the city's current financial situation as a matter of concern.
Pillay was appointed by Premier Thami Ntuli to co-lead the Premier's Msunduzi Working Group (PMWG), which was established under Section 154 of the Constitution in February, to help with a strategy to turn around the municipality's collapsing service delivery and financial control systems.
'The current financial situation is of great concern and will require careful and intensive management,' said Pillay.
He said the employment of the new municipality manager (MM), Felani Mndebele, who started his duties on August 1, was encouraging as this would bring stability and facilitate the implementation of the recovery plan in the municipality.
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The MM position was left vacant after Lulamile Mapholoba was fired last year, leaving a turmoil situation and a visible lack of service delivery.
Pillay was appointed along with Dr Nonhlanhla Mkhize to co-lead the PMWG, but Mkhize is no longer involved since she left her government job as the director-general (DG).
Pillay said Mkhize has been replaced in the PMWG by provincial acting DG Dr Nkosenye Zulu.
The DA wants the municipality to be placed under financial administration as it says the debts were up to R2 billion, failed to spend R15 million in grants, R10 million that was taken from the water department and redirected to the building of community halls, and is losing 60% in water, which amounts to R70 million per annum.
DA Councillor Ross Strachan said water was wasted through leaking infrastructure, which was not maintained because of the absence of technical expertise, illegal connections, and non-functional water meters.
This was while Ntuli's office was expected to provide the city residents with an update on the PMWG's work, which was due to be completed at the end of the year.
Various government departments were estimated to owe the municipality over R200 million in unpaid services.
Pillay said there was a facilitation for the payment of R45 million in government debt to the municipality.
Businesses and households were previously reported to be owing the municipality billions of rand for rates and other services.
Pillay said the municipality's financial situation will be a priority issue in the recovery plan, 'which at the same time must be holistic, covering issues from all work streams'.
Pillay said PMWG was working hand-in-glove with municipality workers' labour unions, local and national business chambers, traditional leaders, ratepayers associations, community development structures, and the Office of the Auditor-General of South Africa, Tsakani Maluleke.
However, he declined to report on what the PMWG had achieved since it began its work, saying the progress report should come from Ntuli and Mayor Mzimkhulu Thebolla.
'The PMWG is accountable to the elected leadership of the province, led by the premier, and the municipality, led by the mayor.
'Public communication is, in the main, the domain of these two political offices,' he said.
He said the final Diagnostic Report and Recovery Plan will be concluded this month, and thereafter, there will be stakeholder engagement.
'These processes will be led by the elected leadership of the municipality. Key to the success of our efforts will be building a genuine consensus and partnership among all stakeholders,' he said.
Ntuli is yet to respond to questions sent to his spokesperson, Bongani Gina, on Wednesday.
However, Thebolla also distanced himself from talking about the work of PMWG, saying that it was only Ntuli's office that could assess its performance.
'I can assure you that we are working very well with them (PMWG),' said Thebolla.
He declined to respond to DA's allegations on the municipality's financial affairs, said he would first have to read the party's press statement, which this reporter forwarded to him.
Strachan, who is a member of the city's executive committee, wants the municipality's financial affairs to be handled by the Finance MEC Francois Rodgers, the DA provincial leader.
Strachan alleged that the political instability has rendered the municipality dysfunctional.
'The council is plagued by ANC infighting, failed oversight, and non-implementation of decisions.
'Leadership remains weak, with continuous disruptions and executive instability, resulting in a collapse of basic governance,' he said.
Thebolla, however, disputed Strachan's infighting and instability allegations, saying 'this is the most stable municipality' within the local government sphere.
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