One of the big stories in the last few months has been the shoddy state of the Emfuleni Municipality in the Vaal Triangle. The municipality was placed under administration in June because of gross financial mismanagement and issues of service delivery.
This prompted calls for the removal of the municipality's mayor, Jacob Khawe, who still remains in office.
Speaking to Thembekile Mrototo on The Xolani Gwala Show, Khawe explains the reasons for the poor financial state of the municipality.
One was the bad management of our finances which included wrong contract management and failure to manage procurement processes correctly.— Jacob Khawe, Emfuleni Municipality Mayor
The second objective we didn't have control over, was the ageing infrastructure, the declining of the economy and the steel industry in our area.— Jacob Khawe, Emfuleni Municipality Mayor
He adds, that these factors combined produced a municipality that had difficulting in managing its finances. However, Khawe claims this occurred a year ago. He says to date it has reduced the R900 million debt by R300 million and stabilised its finances.
The municipality recently released a report on wasteful expenditure, fruitless and unauthorised expenditure which would determine whether the municipality problems are systematic or due to corruption.
Khawe says the municipality was not placed under administration. It was placed under Section 139 A which helped provincial and national government to intervene and impose financial recovery in the municipality.
He says the municipality has made arrangements with various creditors to ensure that its debts are paid.
Listen below to the full interview: