The Emfuleni Local Municipality (Evaton, Sebokeng, Vaal Oewer, Vanderbijlpark, Vereeniging) has sunk even deeper into the quagmire as the contractor BCX Solar, which manages the Municipality’s financial system, cancelled its services due to non-payment.
Emfuleni paid the R3,6 million licence fee, but failed to settle the system’s maintenance fees.
With the financial system down, no clearance certificates can be issued, residents cannot purchase prepaid electricity at the centre, and no arrangements can be made for the connection or disconnection of electricity and water services.
BCX Solar is just one of the many service providers that Emfuleni cannot pay due to Rand Water’s attachment of the Municipality’s current bank account. Emfuleni owes Rand Water R1,3 billion.
The customer service centre using the financial system, in Paul Kruger Street, Vanderbijlpark, was closed on 30 July due to outstanding rental fees. The centre has since reopened after Emfuleni settled a portion of the outstanding amount and reached a temporary agreement with the property owner.
Rand Water agreed to temporarily release Emfuleni’s bank account to allow partial payment of the outstanding rent and the licence fee to BCX.
The cancellation of the system and the closure of the centre follow closely on a report by the Gauteng Provincial Legislature’s Committee on Cooperative Governance and Traditional Affairs (COGTA), which recommended that Emfuleni be placed under full section 139 administration, with financial control transferred to the Provincial or National Treasury.
COGTA visited Emfuleni last week to engage with the Municipality; but whether the Municipality will be placed under administration has not yet been decided.
The Freedom Front Plus (VF Plus) does not expect to see any positive change if COGTA does decide to put Emfuleni under administration.
The Municipality was under partial administration from 2018 to 2022 and its debt to bulk service providers increased drastically during that time.
The only solution is to oust the ANC, under whose governance Emfuleni has fallen into a financial quagmire.
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