SC on Local Government

Media briefing

Following the current debt crisis relating to the R12.7 million which the Kannaland Municipality owes to Eskom, the municipality appeared before the Standing Committee on Local Government on Wednesday, 10 February 2016. At the briefing the municipality revealed that it was planning to obtain a loan amounting to R7.3 million in order to pay its arrears.

Section 46 of the Municipal Financial Management Act provides for municipalities to take up loans, and Kannaland Municipality is inconsistent with these provisions. The Standing Committee on Local Government will brief the media on its planned action in seeking a sound and lasting solution to the financial situation in the Kannaland municipal administration.