DURING a meeting with the Office of the Premier on Monday evening, Let’s Talk Komani (LTK), refused the request of Eastern Cape Premier Oscar Mabuyane and his cabinet to drop its court case aimed at dissolving the current Enoch Mgijima Local Municipality (EMLM) council.
The meeting with LTK – the umbrella organisation representing members of Komani’s well-established civil associations – was chaired by the MEC of COGTA, Xolile Nqata, and the MEC for Finance, Mlungisi Mvoko.
Members of EMLM, as well as a representative from the national Treasury and SALGA also attended.
Mabuyane, who was supposed to lead the delegation, tendered his apologies.
EMLM’s billing has declined from 79% to approximately 50%, making the payment of municipal salaries, as well as Eskom accounts highly unlikely this month.
The municipal crisis has been outlined in its latest 2018/ 2019 audited annual financial statements which reveal unauthorised, irregular and wasteful expenditure amounting to a staggering R894 million.
While labour costs have increased to levels in excess of revenue collected, the debtors’ outstanding book has ballooned to R824 million and Eskom debt increased from R40 million to almost R350 million at its peak.
During the meeting, LTK argued that EMLM had failed to fulfil its constitutional mandate.
Instead of dissolving council through invoking Section 139 (1)(c) of the Constitution, the EC Cabinet, on Monday, indicated that they would opt to invoke Section 139 (1)(b), which would result in an administrator once again being appointed, but this time supported by a turnaround team. LTK reminded the delegation that the municipality is already under administration according to SALGA’s national office and that a court precedent already existed for a less serious application.
Monday evening’s meeting was the culmination of efforts of LTK members over a period of two-and-a-half years to engage The Office of the President, The Office of the Premier and SALGA, among others, to halt the collapse. During this time, two administrators had been appointed, but due to political interference neither were able to carry out their duty to implement a financial recovery plan.
Nqata conceded that there was common cause for the legal action, but reiterated the Eastern Cape provincial government’s belief that problems could be fixed in a “business as usual” approach with some assistance.
Ken Clark, chairperson of LTK, disagreed. “The people who got us into this mess are not going to be able to get us out of the mess for obvious reasons,” he said.
“In light of what transpired from the meeting, we have no option but to continue with the court action. We remain committed to working with all parties which have the genuine interest of all the citizens of EMLM at heart, and are prepared to take the difficult decisions required to restore this municipality to something residents from all four of its corners can be proud of,” Clark concluded.
