The ANC have brought the Cederberg municipality to the edge of financial disaster. The continuous excessive financial maladministration and conspicuous spending by the ANC, since they gained power in the Local Government Elections in 2011, will soon prevent the municipality from delivering certain basic services.
In 2011, under the leadership of the DA, the municipality obtained a clean audit. The ANC took over after the local government elections and could possibly have obtained a disclaimer within the first month in charge. Rough numbers have shown that the ANC has managed to deplete the cash fund of the municipality and accumulate nearly R1 million in debt. In May 2011, there was still more than R4 million available in the cash fund. The Cash Resources needed by the Cederberg Municipality by June 2011 was almost R 18,5 million.
The Municipality is behind in payments to all its creditors including ASLA Civil Contractors and ESKOM. The Municipality owes R5,6 million to ASLA and R4,6million to ESKOM. To top that, the Municipality must still pay R1,8 million in salaries and another R2 million to other creditors. It seems that the Municipality does not currently have the funds available to make these payments. The Cederberg Municipality’s accounts show it has also depleted the Capital Replacement fund of R5 million. The Capital Replacement fund is a minimum amount required to be present in the municipality’s account at all times.
Not only has the Capital Replacement fund been depleted, but the Equity Fund as well. This account must maintain a balance of R 9 million. What raises more concern is the increasing overdraft this account has shown. In April 2012 the Equity Fund had an overdraft of R2 million and a R7 million overdraft in May 2012. This is a matter of grave concern. The Equity Fund exists to assist the poor. These funds play a very important role, especially in the winter. This follows after the Mayor used more than R 300 000, unbudgeted, for food parcels over Christmas, with the express order that it must be given only to ANC supporters.
The cherry on top of the ANC’s ludicrous spending behaviour in Cederberg, is the purchase of a second hand BMW for the Mayor, costing approximately R270 000. The Mayor already has a luxury car at his disposal! Why is he wasting an exuberant amount of money on buying another?
The clear maladministration of the Cederberg Municipality finances at the hands of the ANC, cannot be allowed to continue. I will ask SCOPA to look into the financial maladministration of the Cederberg Municipality. The mismanagement of funds by the ANC governed municipality presents a challenge to all living in the Cederberg area. Soon the municipality might not be able to pay its employees or provide water and sanitation services. The people who will be most affected are the poor. The actions of the ANC show they do not care about the poor. The ANC’s frivolous spending benefits no one. It only contributes to the ANC’s already corrupt reputation and proves that they are unfit to rule.
Statement issued by Bokkie Geyer, DA Western Cape, July 2 2012