By Lebone Rodah Mosima
KwaZulu-Natal Cooperative Governance and Traditional Affairs (Cogta) MEC Thulasizwe Buthelezi has lashed out at uMkhanyakude District Municipality’s proposed R14.6 million financing deal to acquire five specialised water tankers.
Buthelezi said on Wednesday that the deal was “reckless” and showed “an astonishing disregard fiscal prudence” at a municipality already facing financial pressures.
The “financially unsound decision” was detailed in a public notice issued in terms of Section 46(3) of the Municipal Finance Management Act (MFMA), which deals with the process municipalities must follow before taking on long-term debt, said Cogta.
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“The notice outlines the municipality’s intention to enter into a 36-month instalment sale agreement,” Buthelezi said.
“The total cost is R14,619,714.00 for five specialised water tankers. That is approximately R2.92 million per vehicle.”
Buthelezi said the district was already struggling with financial mismanagement
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