Tea and biscuits must replace gourmet catering, and the brakes are firmly on travel claims, as Makana Municipality struggles to pay more than R50 million it owes to service providers.
Tea and biscuits must replace gourmet catering, and the brakes are firmly on travel claims, as Makana Municipality struggles to pay more than R50 million it owes to service providers.
These are two of the cost-cutting measures announced recently by the city's finance boss.
A report from acting chief financial officer Marius Crouse tabled in the agenda of a special council meeting on Monday 13 January warns that cash flow is still a problem in Makana Municipality. Crouse says the directorates must adopt serious cost-cutting measures.
Among the dozens of service providers Makana hasn't paid is Eskom, which supplies the municipality with bulk electricity. According to the report, the City owes R51 953 638.18 to various businesses.
Cutting down on extravagant catering and curbing training and travelling expenses are among the measures Crouse suggested to get the City's finances back on an even keel.
This week acting municipal manager Mandisi Planga denied the municipality was in a state of collapse. However, he confirmed that there was still a cash crisis.
"We are meeting with the provincial treasury next week to see if they cannot assist us," said Planga.
"We are surviving as the municipality. We have cut costs on training and also catering, but service delivery and operational issues are not affected," Planga said.
Last November Mayor Zamuxolo Peter warned of serious cash-flow problems in the municipality.
"The point is that it is clear there is a serious challenge financially that has to be looked at," the Mayor said during an address to Council last year.
Municipal staff did not receive their salaries at the end of October. They were paid later after a substantial payment from Rhodes University.
