Mamabolo allocates R77m to struggling Gauteng municipalities
Gauteng MEC for Cooperative Governance and Traditional Affairs, Jacob Mamabolo, on Wednesday said his department is working tirelessly to improve the state of municipalities.
During his budget vote in the Gauteng legislature, Mamabolo allocated R77 million for municipal support.
Last year, the State of Local Government Report by the Department of Cooperative Governance and Traditional Affairs indicated that there has been an increase in the number of dysfunctional municipalities.
In Gauteng, there have been significant service delivery challenges in the metros.
Mamabolo has vowed to provide comprehensive support to these municipalities.
"Support packages continue to be implemented to address financial management challenges in terms of Section 154 of the Constitution.
"The Gauteng Department of Cooperative Governance and Traditional Affairs, in conjunction with the Gauteng Provincial Treasury, continues to facilitate government debt processes as an intervention between organs of state, where payment of debt disputes is identified.
"In addition, Gauteng COGTA, together with GPT, continues to engage Eskom for amicable solutions in dealing with the overdue debt owed by designated Gauteng municipalities.
"Furthermore, both departments assist with the facilitation of the financial relief plans offered by Eskom to struggling municipalities," said Mamabolo.
He added that the department will conduct municipal viability assessments and strategy development for all Gauteng municipalities.
"The support initiative will focus on conducting due diligence assessments to determine the financial viability, institutional capacity, and development of municipalities and their impact on legislative and development mandates and obligations.
"Developing strategies based on the challenges highlighted in the assessment.
"The strategy will focus on the performance and capacity of the municipalities in the same areas as per the assessment," said Mamabolo.
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