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Implementation of Kannaland Municipality bailout approved

The Western Cape Legislature approved the plan for the municipality which owes R37 million and has a bank overdraft of R4 million.

Picture: EWN.

CAPE TOWN - The Western Cape Legislature has on Wednesday approved steps for the implementation of a support package for the Kannaland Municipality.

This decision follows a request by the recently elected Kannaland Municipal council, which is in a financial crisis.

The municipality owes R37 million and has a bank overdraft of R4 million.

The Kannaland Municipality has requested provincial intervention as well as a targeted support package to address immediate governance, operational and technical needs.

The request was formulated through a resolution adopted at a special council meeting earlier in December.

In terms of the decision taken by the Western Cape Legislature on Wednesday, the provincial Treasury has been requested to prepare a financial recovery plan for the indebted municipality.

The plan will be imposed once it has been finalised in accordance with the Municipal Finance Management Act.

(Edited by Winnie Theletsane)