The DA has noted with concern that Mopani District Municipality is on the verge of collapse due to the continuous deteriorating financial calamity within the municipality.
According to the State of Local Government Finances and Financial Management report, the municipality has scored 16 points confirming the signs of financial distress and an urgent intervention is required with immediate effect to fix the crisis.
The municipality is still struggling to pay all service providers and creditors with outstanding bills to the value of R1 billion.
The DA is deeply concerned that service providers and creditors, such as Lepelle North Water and Telkom, might suspend all their services until the municipality settles their bills. This will cause a total shutdown of the Municipality and residents will suffer tremendously.
The financial turmoil in the Municipality will have a negative impact on service delivery as it is clear that the municipality is technically insolvent and cannot continue to provide services to the residents of the Municipality.
To add to this, there is also no consequence management being applied in this cash-strapped municipality which has received only adverse and disclaimer opinions from the Auditor General since 2014.
It is clear that the continued appointment of unqualified cadres and cronies by the ruling party is crippling this municipality.
The municipality is known for failing to fully utilise its Municipal Infrastructure Grant (MIG) funds whilst the residents are still without basic services, living in abject poverty and remaining unemployed.
The DA is deeply concerned that the failing ANC-governed municipality has abandoned various water projects and other projects which deny residents basic services that they are entitled to.
The DA believes that it is high time for the Municipality to be placed under administration. We furthermore demand that forensic investigations be conducted to probe the financial affairs of the Municipality and hold officials to account.
The Mopani residents deserve better than these shenanigans that halt services to our residents and put their livelihoods at stake.