File
Democratic Alliance Eastern Cape leader Nqaba Bhanga has warned that the financial crisis facing the Amathole District Municipality was just the tip of the iceberg.
He told a virtual media briefing on Thursday that they had identified 14 other municipalities in the Eastern Cape, which like Amathole, required urgent intervention.
In a recent circular to staff and councillors, ADM said it would not be able to pay salaries for four of the next five months. March salaries are expected to come out of the District Municipality's equitable share from the national government.
But, Bhanga said ADM's appeal for a R180 million bailout from national government would only be a temporary fix and would be used to pay its bloated salary bill while service delivery continues to falter.
He called for the Amathole District Municipality to be placed under immediate administration.
Bhanga also said that his provincial colleagues have written to Cogta MEC, Xolile Nqata, calling for a special task team to evaluate distressed municipalities in the province.
"This task team must re-evaluate the financial sustainability of all the municipalities in the province and carry out a complete re-estimation to establish which municipalities are in distress," he said.
Bhanga said Municipalities that are found to be in distress must either be placed under administration or dissolved completely in terms of section 139 of the Constitution.
