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.
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)