Spotlight on Tshwane's R1bn merger pain

05 September 2013 - 03:47 By OLEBOGENG MOLATLHWA
subscribe Just R20 for the first month. Support independent journalism by subscribing to our digital news package.
Subscribe now
Tshwane. File photo
Tshwane. File photo
Image: Gallo Images/Thinkstock

More than two years and R1-billion later, the Gauteng government will study the effect of the incorporation of Metsweding district municipality by Tshwane.

The provincial portfolio committee on cooperative governance and traditional affairs yesterday ordered the department to investigate the effect of the 2011 merging of Metsweding and its two local municipalities - Nokeng Tsa Taemane and Kungwini - and the capital city.

The merger has put considerable financial strain on Tshwane.

The Times reported yesterday that Tshwane was forced to write off R520.6-million in debt it inherited from the defunct municipalities - debt that city officials admit is irrecoverable.

The decision to launch the study was taken at a council meeting last week.

In its first report, covering the second quarter of the year, the department observed that "subsequent to the merger, the municipality [Tshwane] had challenges with reconciling the separate records from the different municipalities [Nokeng Tsa Taemane and Kungwini]".

"The merged municipalities had challenges in keeping reliable, accurate and complete records of the revenue billed and collected," the report said.

subscribe Just R20 for the first month. Support independent journalism by subscribing to our digital news package.
Subscribe now