Musina debt crisis deepens

10 March 2010 - 02:00
By Chester Makana

THE debts crisis of the Musina municipality is likely to derail its plans for service delivery for the next four months.

THE debts crisis of the Musina municipality is likely to derail its plans for service delivery for the next four months.

The municipality, which is financially in dire straits, has complained that its cash flow has been crippled by overpopulation.

In a desperate bid the municipality wrote to standing commitee on public accounts (Scopa), pleading with it to accept that the municipality had used its cash on programmes that were not funded.

Sowetan has been reliably informed that the municipality has received letters from the sheriff threatening to attach properties if it does not pay its dues from last year.

It also owes the department of road and transport R3million.

The municipality wanted an R18 million bail-out from the provincial treasury but the attempt failed and it has reportedly been seeking loans from service providers to pay workers.