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Kannaland debt-crisis: officials must get urgent support

14 September 2016

Release: immediate

The DA in the Western Cape remains concerned about the debt crisis at the Kannaland Municipality. As at the end of August 2016, the municipality owed debtors R37.6 million, in addition to having its primary bank account in overdraft to the tune of R1.82 million.

In my capacity as Chairperson of the Standing Committee on Local Government, I will request that the Western Cape Minister of Local Government, Anton Bredell, implements a recovery plan at the Kannaland Municipality. The Department of Local Government must capacitate accounting officials at the Kannaland Municipality to execute their role of financial management. This is in accordance with Sections 105 and 106 of the Municipal Finance Management Act (MFMA).The committee will monitor the implementation of Sections 105 and 106 of the MFMA in the Kannaland Municipality.

Following the current debt crisis in the Kannaland municipality, the Chief Financial Officer (CFO) has today tendered his resignation. This follows just after that of the Municipal Manager, who resigned a few days after the new Council took office. In recent weeks we have also seen the appointment of a Personal Assistant who reportedly earned a salary in excess of R100 000 per month. This is yet another indication that despite claims to the contrary, irregular activity remains rife at Kannaland.

The debt crisis and the aforementioned financial irregularity is a warning that the municipality is in serious need of support. The DA will continue to do all it can to ensure that the people of Kannaland receive the clean governance and service delivery to which they are entitled.

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