City of Cape Town has lost R2.2bn in revenue during April and May
Bredell said: “The cumulative impact has been devastating on the revenue collection and financial sustainability of municipalities in this province with some municipalities, such as the City of Cape Town, suffering the loss of R1bn in April and R1.2bn in May.
“Mossel Bay lost R84.3 million up to the end of May and Knysna declared R30m in significant revenue losses."
Bredell was answering ANC local government spokesperson Danville Smith during a virtual sitting of the Legislature.
In a follow-up question, Smith asked: “What we want is for the MEC to tell us that he has been engaging with the Treasury and the premier to get more funds to support municipalities.
“How are our municipalities going to deal with this situation if they don’t receive the much-needed support from the province? How are they going to pay salaries and the other expenses such as the Eskom bill?”
Baca Juga
Bredell said: “The financial sustainability of municipalities is in all our best interests. Covid-19 has exposed the weaknesses in the system. It is not our role to dictate to municipalities, we are there to support and monitor them and those that work together with us are the successful ones.
“Yes, we will speak to Eskom etc, but Eskom must also pay their bills. It is important that we get financial discipline going right through the system. Where municipalities get income from selling electricity, they should and must pay Eskom and not use that money in other gaps.
“The municipalities have approached the MEC and the head of the department. propose practical and sustainable solutions.”
@MwangiGithahumwangi.githahu@inl.co.za
Cape Argus
Fri, 17 Jul 2020 09:25:00 GMTMwangi Githahu
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