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Financial Crisis in Renosterberg cripples service delivery

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Financial Crisis in Renosterberg cripples service delivery

Image of Northern Cape Premier Dr Zamani Saul
Northern Cape Premier Dr Zamani Saul

29th March 2022

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/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

The Democratic Alliance (DA) is asking for an urgent meeting with the Premier, Dr Zamani Saul, and COGHSTA MEC, Bentley Vass, to discuss an intervention in the collapsed Renosterberg municipality.

This comes amidst the ongoing financial crisis within Renosterberg following the attachment of the municipality’s bank account in execution of judgment debt by Eskom, due to the municipality owing over R110 million to the power utility. This has in turn affected the ability of the municipality to pay the salaries of staff and councillors since November last year.

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While a commitment made by Saul at the beginning of March 2022, to transfer R3,2 million to the municipal account for the payment of salaries, provided intermittent relief, this has been fleeting. It saw basic salaries paid for December and January only, without pension contributions and garnishee orders of employees being honoured.

Meanwhile, salary payments for November, February and soon to be March, remain outstanding.

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Saul has clearly failed to resolve the bigger crisis, despite him publicly claiming to have reached an agreement with Eskom to stop the freezing of the Renosterberg municipal account for the purpose of the payment of salaries.

The Premier now urgently needs to come to the party with a plan B or else concede failure in his commitment to get Renosterberg up and running again.

Not only are staff and councillors understandably becoming increasingly desperate with the effects of this gross violation of labour law, but services have also come to a standstill.

In particular, a parallel water crisis is unfolding. Only one of the municipality’s four water pumps are operational. Petrusville goes without water for days on end and Vanderkloof and Keurtjiefontein are experiencing water distress. In addition, only one of the six sewerage pumps is still in working order. In effect, sewerage is spilling into the dam. Residents have even had to purchase purification chemicals at their own expense, to prolong access to drinking water.

The situation is unsustainable and the DA has written to Saul and Vass asking that the development of a recovery plan is implemented immediately to secure the municipality’s ability to meet its obligations, so that services and salaries can be restored.

Aside from addressing the immediate situation in Renosterberg, Saul also needs to attend to the province’s many other Eskom defaulters, before similar crises spill over into more Northern Cape municipalities.

 

Issued by Harold McGluwa MPL - DA Northern Cape Provincial Leader

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