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This, according to the MMC of Finance, places the city in a precarious financial position, which could result in an inability to pay service providers and salaries, impacting the provision of service delivery.It further admitted the huge shortfall of non-payment by some households and businesses has taken a toll on service delivery and public infrastructure maintenance.
What the current 11 days cash in hand means that when those who owe money for municipal services and rates fail to pay or in a situation where there is not enough payment coming into the city's coffers from residents, the money available in the reserves is only enough to sustain the city for 11 days before it collapses or unable to pay service providers, staff, and render services to the public.
“While we continue to provide services, such as water, electricity, sanitation and waste collection, I must admit there are instances where we cannot fulfil the obligations on time. “Those contributions will help us pay service providers like Eskom and Rand Water on time to have enough electricity and water to distribute to all our customers.”The former finance MMC in Ekurhuleni, Fanyana Nkosi, who now serves as the DA spokesperson for finance in the city, also weighed in on the MMC's efforts to reinvigorate debt collection measures.
“It will, however, be pointless having these revenue collection measures if not implemented properly. He suggested the city also deals with officials and service providers allegedly engaging in shenanigans and malpractices, including colluding with non-payers and electricity thieves.Dlabathi said a team of officials and officers have been assigned to follow through and ensure that the efforts yield the intended results, protecting the city's revenue.
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