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“Intervention Plan” for Lekwa Municipal Failure Coming This Week – Astral

Last week’s Cabinet approval of the government’s “intervention plan” to correct the inadequate service provided by the Lekwa municipality in Mpumalanga is to ensure that astral foods have regular access to clean water and electricity. Is one step closer to.

The move by the Cabinet came after the country’s largest poultry producer took the government to the Pretoria High Court and forced it to intervene in the matter.

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In April, owners of chicken brands such as Festive, Goldi and Country Fair won the proceedings. The proceedings alleged that both state and state governments could be held liable for the failure of local government services to serve in one of the largest, Standerton. The facility is.

Speak in groups on monday result According to a Pretoria High Court ruling, Frans van Heerden of Astral MD for Commercial, a six-month presentation through the end of March, says the state needs to take steps to remedy the power supply problem “with a sustainable plan.” Said there is. 6 months.

Not enough water

Astral was forced to address service delivery issues as it was unable to ensure clean water from the city of Lekwa.

In June 2019, we took unprecedented steps to warn shareholders that up to 40% of production is under threat due to water problems.

This was despite the availability of water from the nearby Vaal River.

The Standerton plant needs 5 megaliters of water per day to operate at full capacity, but suffers from regular supply interruptions, receiving only 1.8 megaliters per day at the time. did.

read: Malfunctioning municipality chokes Astral (June 2019)

According to Van Heerden, the group is taking steps to reduce its reliance on municipalities, including spending 50 million rants on a filtration infrastructure that allows 50% of the water in the plant to be reused.

The government is on that side

The details of the intervention plan still need to be elaborated, but Van Heerden believes things will move quickly.

“I hope to see more details about that intervention this week.”

Astral may be wrestling with local governments, but despite being brought to court, relations with the state are on a healthier foundation.

“But in that respect we can mention that there is an open communication line between us and the country.”

Astral is also actively participating in the Poultry Sector Master Plan, which is part of the government and industry’s commitment to sector growth.

So far, about 1 billion of the 1.7 billion Rants promised to expand by 2022 have already been invested, of which 710 million Rands have been invested by Astral. The plan is expected to create as many as 4,600 jobs.

Astral water issues have been addressed to some extent, but this is not the only issue facing local governments.

“Electricity remains a concern because the infrastructure is out of order,” says Van Heerden.

Infrastructure issues were also pointed out by the Audit President of the City Financial Management Act 2018-19 General Report.

“ As of June 30, 2019, the municipal infrastructure had a balance of R741 million, but management is spending nothing to maintain this infrastructure to maintain its ability to serve. It did not contribute to electricity and distribution losses of 112 million rants and 63 million rants, respectively. ”

Chronic disease

Almost naturally, the municipality is also competing with the utility Eskom. This is a debt of R $ 1.08 billion according to Eskom’s 2020 Annual Report.

Earlier this year, Escom was forced by the Johannesburg High Court to restore electricity supplies to adequate levels after utilities strangled their supplies.

Lekwa is one of the worst municipalities in the country, according to the Ratings Afrika Municipal Financial Sustainability Index for the fiscal year ending June 2020.

Cities are scored on a scale of 1 to 100, with the city closest to 100 being considered to perform better.

The Lekwa Municipality score is 13.

Listen to Nompu Siziba’s Interview with Gary Arnold, Astral, Maryland: Agriculture (or Read Transcript) Here):

“Intervention Plan” for Lekwa Municipal Failure Coming This Week – Astral

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