The troubled Great Kei Municipality only has enough cash to run its business for this month.
This was confirmed by mayor Loyiso Tshetsha during an interview with the Daily Dispatch.
Documents seen by the Dispatch show that the municipality will receive a mere R38.1-million from national Treasury as its 2018-19 budget.
The municipality will also receive an additional R11-million municipal infrastructure grant, which cannot be used for salaries and administration purposes.
Tshetsha confirmed Treasury will on Monday pay the municipality its first tranche, expected to be about R16-million.
“We are going to struggle to survive on this budget. We start the financial year already on a deficit of nearly R10-million. With the remainder, which is something just close to R7-million, we will pay our debtors and see what we have for salaries again at the end of July. We will not have money for August until December when Treasury pay us our second tranche,” Tshetsha said.
“We have a salary bill of over R4.1-million every month, that is beside other municipal business.” Samwu Amathole regional secretary Luthando Juju said workers were only paid their May salaries on Tuesday and expected their June salary on Friday.
“We have been promised that we will be paid before [the] end of the week, but that hasn’t happened.
“This municipality requires more than R100-million for service delivery and paying its creditors, including staff and councillors’ salaries. The current equitable share will not make a difference in the situation we are in,” Juju said.He claimed that the municipality had a revenue collection problem where businesses and ratepayers were not billed properly.
“We feel that Cogta [cooperative governance and traditional affairs] is failing the people of Great Kei. How do you send an administrator to come rescue a municipality without giving him enough resources?”
Tshetsha confirmed the municipality had a revenue collection problem and that workers and councillors at the municipality had not been paid their June salaries.
Last month, Cogta MEC Fikile Xasa placed the municipality under administration after numerous community service delivery protests. The provincial ANC had to intervene in efforts to rescue the situation.
Tshetsha said his team of officials working with administrator Banzi Silinga were working to turn the situation around.
Tshetsha said they would be holding meetings with ratepayers to persuade them to pay for services.
“The situation is so bad in this municipality that Morgan’s Bay residents have decided to use a private contractor to remove their refuse. That is our service, but we can’t even do the basics,” Tshetsha said.
In May, a municipal building was set alight in the early hours of the morning – allegedly by protesting residents. However, residents denied responsibility.
Great Kei Development Forum secretary Nombulelo Bacela said problems started when the new council came in and instituted a forensic investigation. Tshetsha confirmed the municipality had requested Cogta to assist with a forensic investigation...