R7-billion in debt, Msunduzi must be put under full-scale National Treasury intervention

Issued by Councillor Ross Strachan – DA Msunduzi Caucus Leader
20 Nov 2024 in Press Statements

The DA in Msunduzi calls on the KwaZulu-Natal Cooperative Governance and Traditional Affairs MEC, Rev. Thulasizwe Buthelezi, to invoke Section 139 (5) of the Constitution and hand Msunduzi Municipality over to National Treasury for financial intervention.

Msunduzi is now a staggering R7-billion in debt, demanding immediate intervention from National Treasury. All other interventions to date have not worked.

The DA has consistently raised the fact that Msunduzi’s debtors’ book is not realistic or accurate because the Municipality’s billing system is still irregular and inconsistent.

The city has been running another Amnesty Campaign, scrapping 50% of customer debt accumulated – and alarmingly this has included businesses and consumers who have been stealing electricity.

Recovery of outstanding accounts keeps focusing on soft targets in communities or wards, that usually pay religiously.

The ratepaying communities are being abused by this municipality, as less than 40% of the population of Msunduzi are paying their bills.

The municipality must be placed under National Treasury intervention so that enforcement and collection can be properly capacitated, properly run, and can bring in what the municipality needs to be financially sustainable. Vacancies in the finance, billing, revenue and collections offices must be filled, and a recovery operation must begin.

While some have called for Msunduzi to be released from intervention, the DA will not support this. Now is not the time to lessen intervention it is time for full-scale National Treasury intervention, until the finances are completely sorted out.