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Amathole District Municipality’s debt elimination of over R1bn is questioned by Samwu – SABC News

Union of South African Municipal Workers, Samwu, at the cashless Amathole District Municipality questions timing of cancellation of over R1 billion in bad debt. The union believes the move is an attempt to buy public confidence as the council approved the re-appointment to a second term of fired city manager Thandekile Mnyimba.

The union is unhappy with his reappointment, citing poor performance and mismanagement of municipal funds.

Samwu says he is not satisfied with the state of affairs in Amathole district municipality as relations between the workers and the municipality leader, Thandekile, are paralysed.

Union shop steward in the community, Lorna Lubhedu, says the community has no cash reserves.

“We’ve had disclaimers since he came to the community to ask how possibly this person is going to make a change? He was on board and this institution gets disclaimers. What good does he bring this time if we give him a second term? It just means we applaud him for destroying the community.”

Best interest of Amathole District Municipality

The community’s chief financial officer, Lucky Mosala, has defended the decision to cancel the debt, saying it was in the community’s best interest.

“Of the R1.4 billion, you have deceased customers there. Of the R1.4 billion, you have clients in need, companies that have since been liquidated mainly due to COVID-19. Also, within the billion, you have accounts that are now mandatory under the National Credit Act, which gives confidence to the people who will receive the accounts.”

Provincial Ministry of Cooperative Management spokesman Mamnkeli Ngam says they are also keeping a close eye on the municipality’s finances.

“We receive monthly feedback reports on the progress of the community’s rehabilitation plan. It is our intention that Amathole becomes financially viable and stable in terms of its core functions.”

Mnyimba is expected to take office next month after his appointment was approved by the MEC for Cooperative Governance.

Amathole District Municipality’s debt elimination of over R1bn is questioned by Samwu – SABC News

Source link Amathole District Municipality’s debt elimination of over R1bn is questioned by Samwu – SABC News

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