PA Collapses Knysna
18 August 2023
The July 2023 Monthly Budget Statement published on the municipal website on 15 August 2023, reveals the devastating financial consequences of the PA collapsing the Knysna DA-led government in May 2022 by withdrawing from the coalition to join an ANC-coalition.
The Coalition of Corruption Executive Mayor, Aubrey Tsengwa, has reported that the Municipality is facing an unprecedented financial crisis. The Municipality has a shortfall of R37.3 million with cash commitments exceeding available cash by this amount. The Municipality is, therefore, commercially insolvent. This means that it does not collect enough money monthly to cover its monthly expenses.
The report further states that it is exceptionally concerning that the Municipality has irregularly utilised grant funding for operational expenses and now runs the risk of grant applications being rejected. Multiple creditors could not be paid at year end because of limited cash flow.
Had the PA not dishonoured the coalition agreement two months into entering the coalition, the DA-led government would have ensured the appointment of a competent municipal manager, chief financial officer and other directors to bring stability to our town. The current financial crisis lies squarely at the door of the fickle PA.