Limpopo government provides loan to Thabazimbi municipality

African News Agency (ANA)

Limpopo government provides loan to Thabazimbi municipality
Thabazimbi Municipality. Image - thabazimbi.gov.za

The Limpopo provincial government on Thursday announced a R25 million loan to the cash-strapped Thabazimbi municipality.

Announcing the loan during a media briefing, provincial government spokesman Phuti Seloba said the decision to help the struggling municipality was taken by premier Stan Mathabatha and his executive council during a cabinet Lekgotla on Wednesday.

“The executive council resolved that a transactional loan amount of R25 million be provided. The money will ensure that the municipality is on a sound state,” said Seloba.

However, Seloba said the money would not be deposited into the municipality’s bank account because there was a high risk of it landing up in the hands of the sheriff.

The municipality owes creditors in excess of R400 million and has already had its furniture and several municipal vehicles attached because of failure to pay its bills. Municipal workers have had to sit on the floor in their offices.

Seloba said the R25 million loan would be allocated to the municipality during the 2016/17 adjustment budget process.

He said the municipality, now run by opposition parties following the August 3 municipal polls, was still struggling to operate and needed more resources.

“The municipality cannot meet their own financial obligations. What they are collecting is less than what they are spending,” said Seloba, adding that the municipality owed the Makgalies Water Board and Eskom millions of rand.

“They are unable to do they monthly commitment,” said Seloba

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SOURCE African News Agency (ANA)