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Central SA

FS government debt to Metro under the loop

───   OLEBOGENG MOTSE 14:34 Fri, 28 Jun 2019

FS government debt to Metro under the loop | News Article

The Free State government’s outstanding municipal account at the cash-strapped Mangaung Metro is estimated at about half a billion rand and is expected to come under the spotlight today.


The council is expected to discuss a possible solution to settle the account. The municipality’s cash flow problems lead to Bloem Water Board reducing the pressure of its bulk water flow to Bloemfontein.  Documents seen by OFM suggests that the municipality intends on tabling a proposal for the settling of the provincial government’s debt. Opposition parties might object to this plan.

 Mangaung Metro is proposing that a portion of the Free State government’s outstanding debt be written off and that the remainder be settled immediately. Some of the municipal accounts have been disputed by the provincial department of public works and might be the ones earmarked to be written off. Councillors are expected to vote on this item during this afternoon’s sitting. 

OFM previously reported that the municipality’s electricity company – Centlec took drastic steps against defaulters and switched off the lights at the Southern Life building, that host the offices of the legislature, and Musicon that forms part of the Free State Department of Arts and Culture.  Councillors are expected to vote on this item during this afternoon’s sitting.

 

OFM News/Cathy Dlodlo and Olebogeng Motse

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