The Democratic Alliance will today (Thursday, 25 April 2013) table a notice of motion in the Eastern Cape Provincial Legislature to dissolve the Kouga council to allow for the appointment of administrators to run the municipality. Kouga is unable to service its debts. For the notice of motion, click here.
Kouga owes the Nelson Mandela Bay Metro (NMBM) more than R25 million for water services.
The municipality has been unable to pay contributions to the pension funds of its workers and its debt to SARS and others creditors are in excess of R80 million.
The grim reality of the financial disaster in Kouga is reflected in the fact that requests for interventions has been made by both the DA and the ANC. This included a sitting of the Legislature in Humansdorp last year, meetings and letters to the MEC for Local Government, the Minister of Finance and the Auditor General. The DA fully supported NMBM ANC Mayor Xanoxolo Wayile earlier this year in approaching Finance Minister Pravin Gordhan and National Treasury for assistance.
The NMBM has its own financial difficulties and urgently needs this outstanding payment to be made. Service delivery to the people of Kouga is at an all-time low.
Financial support is only a short term solution to the real problem. It needs to be resolved in a responsible manner. The Kouga municipality and Council cannot manage their affairs at all. It would be wrong to call for just financial support when the evidence of financial mismanagement calls for this municipality to be run by administrators in terms of a Section 139-intervention by the Department of Local Government.