'Little hope for cash-strapped Vaal municipality'

07 October 2015 - 02:03 By Olebogeng Molatlhwa

Emfuleni local municipality is broke. Things are so bad in the Vaal town council that very little of what the municipality bills consumers will ever be recouped.Emfuleni is to write off 91% of debt owed for services rendered in the 2013-2014 financial year alone. This figure is up by R556.8-million from R1.8-billion the financial year before.In a damning assessment of Emfuleni's financial sustainability, the auditor-general expressed little optimism of the municipality continuing to operate as a viable entity.This after it ran up a deficit, ending the financial year with liabilities exceeding assets."Emfuleni local municipality incurred a deficit of R192888377 during the year ended 30 June 2014 and, as of that date, the municipality's current liabilities exceeded its current assets by R160274523. These conditions indicate the existence of a material uncertainty that may cast significant doubt on the municipality's ability to operate as a going concern," the auditor-general said.The woeful state of the municipality's financial position is further exacerbated by escalating losses of potential electricity and water revenue, owing to faults in the distribution systems.The DA's Hendrik Schmidt said had the municipality been a private company, "it would in all probability have had to close its doors"...

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