Nama Khoi Municipality celebrates Treasury’s debt relief recommendation

February 24, 2025

The Nama Khoi Local Municipality is pleased to announce that the National Treasury has approved the first phase of our debt relief program, effective from 1 July 2023. This significant achievement comes after Eskom confirmed that the portion of our debt included in the relief amounts to R209,717,044.30 as of 31 March 2023. In recognition of our substantial compliance—achieving 86% adherence to the conditions outlined by the National Treasury during the first cycle—the Treasury has instructed Eskom to write off one-third of our municipal debt. This equates to a relief of R69,905,681.43, which will be processed in Eskom’s financial system within the next 30 days.

Municipal Manager Mr. Jan Swartz attributes this milestone to the responsible and effective leadership demonstrated by Speaker Dr. Gustav Bock and Mayor Councillor Rodney Kritzinger during their shared terms as mayors. “This debt relief is a testament to our unwavering commitment to financial responsibility and the diligent efforts of our leadership team,” Mr. Swartz stated. “Their dedication to transparent governance and sustainable financial practices has been instrumental in achieving this success.”

The National Treasury has commended the municipality for enforcing best-practice financial management as envisaged in the Municipal Finance Management Act (MFMA) and the Municipal Systems Act. This positive behavioral change has been pivotal in realizing the first third of the debt relief benefit. As we progress, the municipality is fully committed to maintaining and enhancing adherence to the conditions of the debt relief approval over the remaining two years of the program.

We acknowledge that our electricity, refuse, water, and wastewater tariffs have not been cost-reflective. A thorough review will be conducted to align these tariffs appropriately, ensuring the sustainability of our services. A critical examination of our staff establishment will be undertaken to ensure it aligns with our financial capabilities and our constitutional mandate to deliver basic services effectively. We will strengthen our credit control policies and practices, including proper allocation of consumer payments and striving to achieve targeted collection rates across all services.

Immediate action will be taken to address the overstatement of property market values in our financial system and to ensure all properties are accurately included, guaranteeing legality and correctness in our billing processes. Additionally, we will enhance our reporting mechanisms, including timely submission of required documentation to the GoMuni portal, to maintain transparency and accountability.

The municipality extends its gratitude to the National Treasury, the Northern Cape Provincial Treasury, and the Provincial Department of Cooperative Governance, Human Settlements, and Traditional Affairs for their support and collaboration. We recognize the importance of these partnerships in successfully adhering to the program’s conditions and achieving financial sustainability.

Speaker Dr. Gustav Bock remarked, “Our commitment to the community drives us to uphold the highest standards of financial management. We are dedicated to making decisions that reflect transparency and accountability for the betterment of our municipality.” Mayor Councillor Rodney Kritzinger added, “This debt relief is not just a financial adjustment; it’s an opportunity to renew our focus on delivering quality services to our residents. We are steadfast in our mission to create a prosperous future for all.”

The Nama Khoi Local Municipality remains dedicated to serving our community with integrity and efficiency. Through strong leadership and collective effort, we believe we can overcome challenges and pave the way for sustained growth and development.

 

 

 

 

Last modified: February 24, 2025

One Response to " Nama Khoi Municipality celebrates Treasury’s debt relief recommendation "

  1. Loretta Bock says:

    Excellent work. Stay focus as leaders and don,t let any thing come in your way to perform better services to our residents in Namakwa. God will and shall walk the road with all of you, know Him in your dicesions. Blessings for the future.

Leave a Reply to Loretta Bock Cancel reply

Your email address will not be published. Required fields are marked *