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MEC THULASIZWE BUTHELEZI CONDEMNS UMKHANYAKUDE DISTRICT MUNICIPALITY’S RECKLESS LENDING SPREE

ULUNDI, The KwaZulu-Natal MEC for Cooperative Governance and Traditional Affairs (KZNCOGTA), Thulasizwe Buthelezi, strongly condemns the uMkhanyakude District Municipality.

Decision to incur R15 million is reckless and reveals an astonishing disregard fiscal prudence

This financially unsound decision was detailed in a public notice under Section 46(3) of the Municipal Finance Management Act (MFMA).

The notice outlines the municipality’s intention to enter into a 36-month instalment sale agreement.

The total cost is R14,619,714.00 for five specialized water tankers. That is approximately R2.92 million per vehicle.

MEC Buthelezi views this proposed transaction as completely unnecessary and financially irresponsible. It is a direct threat to the financial stability of the municipality.

The district is already struggling under the weight of financial mismanagement and adverse audit outcomes.

“Just this week, KZNCOGTA dispatched 5 water tankers free of charge to uMkhanyakude,” stated MEC Buthelezi. “We covered Jozini, Big 5 Hlabisa, Umhlabuyalingana, and Mtubatuba. We did this precisely to alleviate the severe water crisis in the district without adding a single cent of debt to the community.”

KZNCOGTA will cover the day to day operational expenses of these 5 water tankers including diesel and drivers.

“This issue for equipment could be resolved through proper intergovernmental coordination.”

MEC Buthelezi calls on the Mayor of Umkhanyakude, Cllr Siphile Mdaka and the Executive Committee to cancel this ill-conceived transaction with immediate effect.

KZNCOGTA will continue to monitor the situation closely. The department will exercise its constitutional oversight powers to protect public resources and defend the interests of the residents of uMkhanyakude.

ENDS

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