Central SA
Nxangisa weighs in on Mangaung woes─── DANE BEISHEIM 13:58 Mon, 02 Nov 2020
Free State Cooperative Governance and Traditional Affairs MEC, Thembeni Nxangisa, has expressed confidence at how Mangaung Metro Municipality is improving its performance, saying the Moody’s credit rating agency is reviewing the municipality better.
In an exclusive interview with OFM News regarding the state of municipalities in the province, Nxangisa has confirmed that although there are still major challenges, they continue intervening at local municipalities that are severely distressed, including at the Mangaung Metro.
His statement comes amidst growing concerns over the state of municipalities in the province with the National Council of Province’s (NCOP) having recently confirmed that they are still plagued by financial mismanagement and a lack of political leadership. This, coupled with their inability to collect revenue and provide adequate services to residents.
The NCOP, during its week-long visit to various provinces last week, expressed great concern over irregular expenditure incurred by Free State municipalities, as well as how Eskom and water board debt escalates.
The NCOP further raised concerns with how Free State municipalities collectively owe Eskom over R12 billion - making it the province with the highest debt. This, in addition to adverse audit reports released by the Auditor-General indicating that municipalities in the province are still battling to produce clean audits despite interventions by the provincial government.
The metro was placed under the provincial care last year December following national treasury's letter to Premier Sisi Ntombela, expressing concerns over its inability to generate revenue and provide services to residents.
This came after Moody’s credit rating agency downgraded the municipality twice, questioning its financial viability.
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