Free State Finance MEC Gadija Brown says they are determined to reduce government debt for rates and taxes at various municipalities across the province.
This comes after the Mangaung Metro cut water supply at various government premises in Bloemfontein over unpaid services. The Mangaung Metro is owed almost R2 billion by government departments and entities.
The cash-strapped metro is playing hardball with defaulting government departments. Mangaung was placed under administration in December 2019 for failing to implement the financial recovery plan.
The powers that be at the politically unstable metro want the government to lead by example.
Brown says they have entered into a payment plan with Mangaung in a bid to reduce the debt.
Scores of government workers were warned not to report for duty on Friday by Free State Director-General, Kopung Ralikontsane.
This follows the drastic action by the Mangaung Metro to discontinue the water supply at government headquarters and various other premises in Bloemfontein. MEC Brown insists that government has been meeting its obligations towards the municipality.
“I believe that you know if we have entered into some sort of a conversation from a legal conversation… Free State provincial government is honouring the obligations in terms of what is required. And I believe that like I said in this new financial year we have budgeted appropriately so we hoping that would resolve the problem in this new financial year.”
In the related video below, a conversation on how local municipalities should handle municipal debt:
Meanwhile, political staff in the Mangaung Metro blockaded the main entrance to the municipal precinct in Bloemfontein over unpaid salaries.
They say they have not been paid since January. The few who were paid only received half of their salaries.
Workers allege that the newly-appointed acting municipal manager, Mzingisi Nkungwana, has refused to authorize their salaries.
Mangaung Metro municipality fails to honour payment arrangement with Bloem Water:
