A chief financial officer of a small municipality resigned on Wednesday in the midst of a debt crisis and news that a personal assistant was appointed at a salary of R100‚000 a month.
A “recovery plan” is urgently needed in the Kannaland Municipality‚ Masizole Mnqasela‚ chairperson of the Standing Committee on Local Government in the Western Cape Provincial Parliament‚ said in a statement.
He disclosed that as at the end of August 2016‚ the Kannaland 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‚” he said.
“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 Cape Times reported recently that the PA's salary was indicated as R100‚000 a month on the council's agenda - making her salary higher that the outgoing municipal manager‚ who received R1.1 million annually‚ equalling R91‚000 a month.
On its website‚ the Kannaland local government describes itself as “the municipality that works” and states the area is renowned for its cheese factories and the production of world famous dairy and wine products.
It is located within the Eden District Municipality in the Western Cape province and includes the towns of Ladismith and Calitzdorp.
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