WC launches recovery plan for struggling municipalities

It was discovered that the Cederberg and Matzikama municipalities are struggling financially.

The South African rand. Picture: Craig Wynn/EWN.

CAPE TOWN - The Western Cape government has launched a process to ensure the sustainability of the Cederberg and Matzikama municipalities.

Local Government MEC Anton Bredell has sent officials to conduct assessments on the administrations' stability and relationship with newly elected councils.

Officials have found the leadership is effective, but they have also discovered that the municipalities are struggling financially.

The Matzikama Municipality currently owes R67 million, half of which was due 90 days ago.

Cederberg Municipality has been found to have serious cash flow challenges and is operating on a R6 million overdraft.

Although most councillors at the two municipalities are newcomers having been elected in August, officials believe the administrative leadership is stable.

The assessments were conducted to establish the depth of problems within the municipalities.

Council executives will now be required to respond to the findings and possible implementation of recovery plans.