Musina Municipality Mayor Godfrey Mawela says the municipality is in talks with the National Treasury and Limpopo Treasury to negotiate the release of money that has been withheld for contravening the Municipal Finance Management Act.
Limpopo has five municipalities that have been flagged to have contravened the law by the Treasury, including Mopani District municipality, Thabazimbi, Modimolle-Mokgopong and Fetakgomo Tubatse out of the 69 nationwide.
WATCH | The National Treasury says consequence management is being implemented against non‑compliant municipalities, following the reduction of funding linked to expenditure issues. pic.twitter.com/at3PqSes7f
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Mawela says the main contributor to their contravention is that the municipality owes Eskom over R50 million.
“We have been engaging with both the National Treasury and the Provincial Treasury to secure the release of the withheld funds. We have since met with the National Treasury, and they have agreed to release 30% of the R96 million so that we can settle part of our debt with Eskom. Thereafter, we will provide proof of payment to demonstrate that the funds transferred to us were used to settle the debt. We currently owe Eskom approximately R52.1 million,” he adds.
VIDEO | R96 million withheld from Musina municipality:
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