The ongoing provincial financial mismanagement in the Eastern Cape continues to have an adverse effect on the smooth running of municipalities. The provincial Education Department took nine months to pay an amount of R240 000 to the Baviaans Municipality. The Health Department took seven month to pay R112 000.
It’s time that this province pulls its socks up before it pulls down many municipalities instead.
This matter was brought to the attention of the DA in Bhisho and after letters, a question for oral reply and personal meetings with various MECs, the money has now been paid.
When the province withholds money due to municipalities, it has an extremely adverse effect on their financial viability. This sometimes results in cash strapped municipalities having to divert other resources to cover the shortfall caused by the province.
This is extremely frustrating when one has to spend hours of one’s time fighting the bureaucratic monster that Bhisho has become. It is detrimental to the morale and motivation of employees of municipalities who already have their backs to the wall when it comes to trying to improve service delivery.
For small municipalities amounts such as these are extremely important and without it they cannot function effectively. In the end, it is the people on the ground, who need service delivery, that are badly affected.
In the new financial year budget increases in the municipalities in the province in real terms are not going to amount to very much. This means cash flow management is going to take on even greater critical importance
For further information, please contact Bobby Stevenson, MPL on 082 775 3444.