Besieged Enoch Mgijima Local Municipality (CHDM) faces a possibility of being hauled before the courts by three different organisations.
Border Kei Chamber of Business and Civic and Ratepayers Association of Enoch Mgijima released a joint statement and threatened legal action should their hand be forced.
“As a result, business and ratepayers will have no option but to seek intervention from the High Court. We will pursue the ring-fencing of all the revenue from electricity to be used to contribute to the settlement of the Eskom debt as well as much contribute to much needed repairs to the electrical infrastructure network, the ring-fencing of the equitable share to be received from National Treasury, to be used to contribute to the settlement of the Eskom debt; and the creation of a trust account for the receipt of all rates and tariffs due to the municipality,” the statement said.
In an unrelated matter, ISANCO secretary general Thando Sishuba wrote to Nqabisa threatening legal action after their two councillors were chased out of an October 31 council meeting.
“We view this behaviour as an infringement on our legitimate councillors to participate in the democratic discourse. Councillors Mncedisi Mbengo and Mthuthuzeli Qhamgana are the legitimate representatives of ISANCO in EMLM as sworn in,” Sishuba said.
“We shall not hesitate to institute a legal action (civil and criminal) against you and the security company as contracted by your council.”
Noluthando Nqabisa, council speaker, said the matter around ringfencing revenue for the payment of the Eskom debt was a discussion with the DBSA team. The municipality had not received financial assistance from the NCR.
“The equitable share is an operational budget that has commitment towards the day to day running of the municipality and the maintenance of our infrastructure and also payment of creditors, wage and salary as per the collective agreement,” she said.
Responding on the ISANCO letter, she said she had received letters from the organisation expelling the two councillors.
“We have now written to IEC to give us the names of the replacement of the councillors as its stands in their party list and what that party has communicated to IEC,” she said.
Talking on the municipal manager matter, she said the municipality used Section 54A(1)(b) to appoint the municipal manager.
She also said councils resolved to seek secondment when it could not appoint from its own pool of directors.
National Treasury said under the intervention, the powers of council were bound by the parameters of the financial recovery plan (FRP).
Concurrence for any decision that has an impact on the implementation of the FRP must be sought from the NCR and national government.
“This is not only limited to decisions relating to revenue and expenditure but extends to all other decisions that can hinder the effective implementation of the plan. The failure of council to support the FRP will provide grounds for its dissolution,” it said.
