Bisho owes R71m to municipalities

BISHO – The Eastern Cape government owed almost R71-million to “cash-strapped” district municipalities throughout the province, the legislature heard yesterday.

This was contained in a report tabled by housing and local government standing committee chairman Gloria Barry on the committee’s recent visit to 45 local councils.

The report stated that non-payment of services rendered to provincial government departments by the councils impacted “negatively on the functioning of the district municipalities”. The department of public works owed R47-million to the council, while the health department owed R8-million.

Amounts owed by other departments to various councils ranged from R39000 to R7,4-million.

The committee recommended that Premier Makhenkesi Stofile facilitate a meeting with MECs to ensure proper systems for billing the provincial departments for services rendered by district municipalities were put in place. The report stated that there was a lack of financial support for district municipalities and that finances were not being managed properly.

“There is a general lack of capacity in both the councillors and the officials,” it said.

Local DP spokesman Bobby Stevenson said the committee report was a “damning indictment of the poor state of administration at local level in this province. Bold and ethical leadership is required at local government level.” – ECN