eThekwini’s R7.2 Million Debt Forces Suspension of Essential Services

eThekwini’s R7.2 Million Debt Forces Suspension of Essential Services

  • eThekwini’s ability to carry out basic operations has come to a standstill after Konica Minolta pulled the plug on municipal printing services
  • The move follows the city’s failure to pay a R7.2 million bill, raising fresh concerns about financial mismanagement and service delivery in KZN’s only metro
  • Despite managing an annual budget of R60 billion, the eThekwini municipality has failed to settle its debt

PAY ATTENTION: You can now search for all your favourite news and topics on Briefly News.

eThekwini Municipality’s ability to carry out basic operations has been crippled after Konica Minolta suspended all printing services due to an unpaid debt of R7.2 million. The halt has exposed financial mismanagement in KwaZulu-Natal’s only metro, already marred by corruption scandals and poor administration.

Konica Minolta suspends services in eThekwini
Despite managing a R60 billion budget, eThekwini Municipality’s failure to pay a R7.2 million bill exposes deeper issues of financial mismanagement. Image: eThekwiniMILE/X
Source: Twitter

R60 billion annual budget

Despite overseeing an annual budget of around R60 billion, the municipality failed to settle its outstanding balance. This led to Konica Minolta suspending the account to force the municipality to pay the debt. The metro is currently governed by an ANC-EFF-IFP-NFP-run municipality.

Read also

Mavuso Msimang says ANC's image would be tainted if party ignores corruption, SA says it's too late

The suspension was confirmed in an internal memo from senior procurement manager Nicholas Mkhize, who called on all departments to urgently settle their debts to restore services.

PAY ATTENTION: Briefly News is now on YouTube! Check out our interviews on Briefly TV Life now!

Plan to resolve the debt

According to Sunday World, the memo was circulated to senior managers, heads of departments, deputy heads, and executive directors, urging them to resolve their respective debts with the city’s accounts payable office.

The municipality allegedly offered a R1 million partial payment to Konica Minolta in an attempt to resume services, but the offer was declined.

Financial mismanagement in eThekwini comes to light
Konica Minolta suspends services in eThekwini due to an unpaid R7.2 million debt. Image: buhlembhele_/X
Source: Twitter

What you need to know about the eThekwini Municipality

  • The eThekwini Municipality announced that it is cancelling the Expanded Public Works Programme. It said that it cannot afford the R278 million it needs to sustain the six-month contract programme, which employed thousands in the City.
  • The eThekwini municipality has kept an employee on suspension for over four years after failing to resolve a disciplinary issue. The employee has been sitting at home earning a full monthly salary while doing no work at all.
  • A raid was carried out on Umngeni Road in the heart of the city of Durban to focus on mechanics who didn't have licenses to work, as well as catching illegal foreigners lawfully.
  • eThekwini Municipality confirmed that it will assist with the burials of five people who were swept away during flooding, and also that people living in flood-prone areas around Ward 74 will be moved.
  • eThekwini Municipality will spend R4.4 million to erect a statue commemorating the arrival of indentured Indians in South Africa. The Indians, who are the ancestors of the current Indian community in the country, arrived in 1860 to work on a sugar cane plantation.

Read also

Shauwn "MaMkhize" Mkhize loses legal battle as Royal AM fails to overturn PSL's expulsion decision

eThekwini municipality introduces hemp and weed seed pilot programme

In another article, Briefly News reported that the eThekwini Municipality is launching a pilot programme for local farmers to cultivate hemp and weed seeds, aiming to unlock opportunities and jobs for AgriSMMEs.

This initiative is in line with the municipality's 10-year Agri-Business Masterplan, which adds weed as the fifth commodity. Mayor Mxolisi Kaunda anticipates that the programme will help pilot and develop the hemp sector, aligning with evolving South African legislation.

Source: Briefly News

Authors:
Justin Williams avatar

Justin Williams (Editorial Assistant) Justin Williams is a multimedia journalist who recently completed his Bachelor of Arts (BA) degree in Film & Multimedia Production and English Literary Studies from the University of Cape Town. He is a former writer and chief editor at Right for Education Africa: South African chapter. You can contact Justin at justin.williams@briefly.co.za

Page was generated in 4.4662408828735