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Msunduzi Municipality 'in dire financial position', may not pay creditors

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Councillors have alleged that the municipality has little to no reserves and they were informed by the council’s senior manager that there was a danger they might not be able to pay some of their creditors.

They said the municipality was struggling to undertake basic functions like fixing street lights or damaged transformers.

“We had a meeting with a senior official recently and he told us how bad the situation is, that we are in danger of not being able to pay creditors,” said ACDP councillor Rienus Niemand. Bongumusa Nhlabathi, a DA councillor who sits on the Municipal Public Accounts Committee, said while he was not present when the revelations about the city’s financial state were made, it was true the municipality had no money.

“For example, we have about four vehicles at waste collection that are working and more than 10 that are broken and waiting for repairs.“The municipality is living hand to mouth; we have to get payment from ratepayers before we are able to perform any of the city’s functions.

 

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