The DA is alarmed by the Ithala Development Finance Corporation’s failure to pay its municipal bills on time, resulting in its electricity being disconnected.
The provincial entity directly responsible for small business growth has failed to pay its eThekwini arrears of R431 000 and has a total bill of R977 678 for the Northmead Industrial Park in Redhill.
Compounding the situation is that this is not an isolated incident. The bustling industrial complex housing about 45 units has been left high and dry by Ithala before.
The late payment of municipal bills by provincial departments and entities is a perennial issue, costing eThekwini hundreds of millions of Rands in lost or late revenue annually.
The DA will be writing to Economic Development, Tourism and Environmental Affairs (EDTEA) MEC Siboniso Duma to establish the reasons behind the entity’s ongoing failures and to call for a probe into all Ithala industrial parks throughout the province. In many cases they remain at low occupancy levels or have become so dilapidated that they are beyond repair.
Small businesses and manufacturers in KZN have already suffered significant hardships brought about by load shedding, the July 2021 riots and a poor economic output. The non-payment of municipal bills must now be strongly condemned and those responsible disciplined.
Government must pay its bills or face disconnection if local government is to remain financially sustainable. However, the knock-on effect on business is debilitating and cannot be condoned.
South Africans will be afforded an opportunity in 2024 to install a responsive and caring provincial government – one which pays its bills on time and supports local jobs and the economy.