The Democratic Alliance (DA) has requested the Municipal Manager of Phokwane municipality to brief council on action to be taken to address debt recovery shortfalls as debt spikes, impacting on municipal cash flow.
Councillors, including the Phokwane mayor, collectively owe the municipality in excess of R1,4 million for outstanding current accounts. Six councillors owe amounts ranging between R100 000 and just over R200 000.
Government entities and private entities further owe the municipality over R21, 479 million. This includes debt owed by the Northern Cape Department of Roads and Public Works, totaling over R6,874 million, as well as the Frances Baard District municipality, which owes more than R2,397 million.
The municipality must urgently adopt a multi-pronged approach to improve its debt collection to safeguard dwindling cash flow and prevent a situation whereby it can no longer pay its creditors.
I have requested the municipal manager in writing, to formally notify councillors who are in arrears for a period longer than two months, and to facilitate account settlements or stop-order agreements, to ensure that the debt is urgently paid. I have also reminded the MM that councillors are considered to be in breach of the Councillor Code of Conduct when they are in arrears with their municipal account for longer than three months. The MM’s failure to properly address councillor debt, will also translate into a dereliction of duty on his part.
In addition, I have submitted a request for the MM to brief council on his plan to pursue defaulting clients more aggressively. Aside from implementing strategies such as the issuing of final notices and targeting chronic defaulters with disconnections, it must also entail the review and finalization of longstanding account disputes, to also allow debtors the opportunity to settle their accounts.
The more than 60 000 people living in Phokwane depend on the municipality to operate as a going concern by breaking the debt cycle and ensuring that it has the financial resources to sustain service delivery.