Indebted Kannaland Municipality in need of saving

The Kannaland municipality may be placed under mandatory intervention or administration.

South African money. Picture: Facebook.

CAPE TOWN - The Western Cape legislature's standing committee on local government says the Kannaland Municipality is in serious need of support.

The municipality currently owes R37.6 million.

Its primary bank account is in overdraft to the tune of R1.82 million.

Committee chairperson Masizole Mnqasela has called for a recovery plan to be implemented at the indebted Kannaland Municipality.

He says the provincial local government department must also capacitate accounting officials at the municipality, to execute their role of financial management.

"The only hope is by a provincial government coming in and providing that permanent presences and ongoing support at the municipality."

Mnqasela says they'll continue to monitor the implementation of sections of the Municipal Finance Management Act.

He says if the situation does not improve, the Kannaland Municipality may be placed under mandatory intervention or administration.

(Edited Neo Koza)