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Municipal account ‘not frozen’ National intervention demanded Marti Will
council would want to use the section 19 of the Finance Act is therefore inappropriate. For that matter this section of the MFMA (Municipal Finance Management Act) does not deal with any form of intervention, rather it deals with capital projects,” he explains. Matjhabeng’s current account which was frozen by the Supreme Court is used by the municipality to pay its running costs and salaries. According to court records, the outstanding debt to Down Touch resulted from a court order instructing the payment of some R20 million which Down Touch obtained in the Supreme Court in August last year. The payment of this amount was in arrears. After the court order in August the money was repaid until the amount of R6,5 million was outstanding. “On Friday the Supreme Court ordered that the municipality’s account remains frozen until the R6,5 million was available to repay Down Touch through the Sheriff of the Court. “The municipality is committed to pay our debtors. In pursuit of our resolve to build the sustainable entity, we have reached a mutual agreement with Cogta (Cooperative Governance and Traditional Affairs), Salga (South African Local Government Association), AG (Auditor-General) and Provincial Treasury to deal with essential matters aimed at ameliorating our deplorable state of affairs,” Matutle says. According to him, the municipality is currently engaged in a clean-up of systems, processes and procedures which relate to creditors and debtors, as well as matters of good corporate governance. “This clean-up is subject to intense scrutiny to better our financial performance and viability. Added to this, the Back-to-Basics principle of doing the right things brings the issue of doing business in good faith into full view,” he says.
THE Matjhabeng Municipality’s current account was “frozen” for a few hours on Friday after a local businessman obtained a court order from the Supreme Court in Bloemfontein. According to the interdict the municipality owes Down Touch, owned by Welkom businessman Johan Cronje, R6,5 million. Spokesperson for the Matjhabeng Municipality, Kgojane Matutle, confirmed this, but says that the court was alerted to the fact that the Matjhabeng Municipality was not afforded the opportunity to defend the matter. “It is important to note that the court arrived at this conclusion without the municipality being given the opportunity to defend itself. “To this extent the municipality reserves the right to explore legal recourse on this matter. The municipality’s account is up and running,” Matutle says. Vista understands that the DA plans to apply to parliament for national intervention into Matjhabeng’s money affairs (in terms of section 19 of the Finance Act). If this is granted, Finance Minister Nhlanhla Nene will be instructed to intervene and take over certain aspects of the management of the finances of Matjhabeng, says a spokesperson for the DA in Welkom. Matutle, however, says that the call for national intervention is premature because the road map to be placed under administration runs through section 154 (1) of the Constitution. “The national government and provincial government, by legislative and other measures, must support and strengthen the capacity of municipalities to manage their own affairs, to exercise their powers and to perform their functions. “The reason why the opposition in
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TROUBLE is brewing at the M3 housing project in Meloding, Virginia. Subcontractors who were dismissed and allegedly replaced with people from outside the region, are up in arms about various issues. The project, which kickedoff in 2013, raised the expectations of the impoverished residents of Meloding. However, according to residents subcontractors from as far as Mozambique were appointed, while local men were mostly sidelined. Photo: Supplied
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