From the Mayor’s Desk – 17 August 2017

Since taking over Kouga in August 2016, we have discovered that there are a number of financial claims and serious matters of non-compliance hanging over the municipality like a dark cloud.

1. Old debt to Department of Transport

The municipality failed to pay over drivers licence monies to the Department of Transport for several years under the two previous Councils. At the time of the 2016 election, the outstanding amount stood at about R11 million. We are paying this off in line with an arrangement made with the Department.

2. R46-million water bill from Nelson Mandela Bay Metro

Following the election, the new Council was shocked to find that the Nelson Mandela Bay Metro had issued Kouga with a water bill for R46 million. This was in addition to the monthly water bill. According to the Metro, Kouga had been under-billed for water usage between 2012 and 2016. The bill had been issued to Kouga in May 2016 but had not been disclosed by the previous Council. Negotiation with the Metro regarding the bill is ongoing.

3. Court case regarding the 2012 St Francis Bay canal fire

A court case that the municipality is defending could potentially cost the municipality between R30 million and R40 million. The claim arises from the 2012 fire that saw scores of houses being razed to the ground in the St Francis Bay canal area.

4. R13-million bill from the Department of Labour

In July 2017 the Council was confronted with another shock bill. Dating back 10 years and totalling R12,62 million, the bill was for Return of Earnings (RoEs), required for what is commonly known as “workmen’s compensation”.

The municipality hadn’t submitted RoEs from 2007 to 2016. This meant that municipal employees did not have proper cover for Injury on Duty claims for almost ten years.

The municipality has since come to an arrangement with the Department for workmen’s compensation to be reinstated and is negotiating paying off the outstanding amount.




3 Responses to “From the Mayor’s Desk – 17 August 2017”

  1. Mari Bothma Says:

    Dit is skokkend. Hoe kom n Munisipaliteit uit skuld soos hierdie ….. belastingbetalers wat weer gaan moet opdok????
    Wanneer gaan daar dan endag aan Paradysstrand se strate .. spesifiek Johan Muller wat n hoofstraat is in Paradysstraand is en besig is om in n grondstraat te verander, iets gedoen word?

  2. Barry Campbell Says:

    Hopefully investigations will reveal the councillors/ employees who were responsible for these derelictions. The resultant disciplinary and criminal charges should serve as a warning to others.

  3. Mel Says:

    Surely there should be repercussions to those who mismanaged these things. It seems so unfair that some government members can get paid a huge salary to mismanaged the tax payers money – there should be penalties.

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