ANC Infighting costs strained Kungwini R 22million

The Kungwini Municipal council (Bronhorstspruit) is about to make a decision that will cost this financially strained council at least R22million. What makes this decision controversial is the fact that sources have revealed that high ranking ANC office bearers in the council are struggling to obtain nominations for re-election to the newly enlarged Tshwane council. Sources in the know have told the DA that this is a mechanism for these office bearers to buy support from SAMWU to secure nominations.

The council intends approving a report at its council meeting on 20 January 2011 that will promote all employees by one post level.  This move will cost the Kungwini council R22 million once off and a further R2,8 million per month going forward. The Kungwini council is teetering on the brink of financial disaster and cannot afford this intended decision. It is therefore illegal in terms of the Municipal Finance Management Act (MFMA).

Apart from the political expediency driving the decision it will also saddle the new Tshwane council with a higher than intended salary bill when the municipalities are merged after the local government elections. In order to prevent this decision from being taken I wrote to the MEC for Local Government and Housing today to urge his urgent intervention. The council has benefited from ongoing financial and technical support from the Gauteng provincial government, yet it continues to make bad financial decisions. It is time the Kungwini municipality was placed under administration by the MEC. I also intend to write to Treasury to ensure that the MFMA is adhered to within the Kungwini municipality.

Statement issued by Fred Nel, MPL, DA Gauteng Spokesperson on Local Government, January 19 2011

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