Nelson Mandela Bay has the highest unemployment rate of any metropolitan municipality in South Africa, yet the ANC-led government seems hell-bent on destroying local businesses and the economy through its inability to pay creditors timeously.
Today, 10 August 2022, frustrated service providers protested yet again to demand that the Metro pay them for services rendered. This follows little more than a week after they were first protesting.
I have written to the Executive Mayor, ANC Cllr Eugene Johnson, Member of the Mayoral Committee (MMC) for Budget and Treasury and the City Manager requesting an urgent Joint Mayoral-Budget-Treasury meeting so that we can understand the root cause of the excessive delays in paying our creditors, as well as identifying solutions to the ongoing problem.
The non-payment of service providers within the mandatory stipulated 30-day period makes it very difficult for especially SMMEs to remain financially sustainable and has led to a number of contractors closing their doors. The mayor and the ANC are throttling the economy and killing small business and jobs.
The creditors’ re-payment rate is currently standing at 72 days as opposed to the mandatory 30 days. This is the worst performance by the Municipality in seven years.
It is time that the Municipality gets its financial house in order. Its collection rate has dropped to 75,67%, far below the national norm of 95%. We will only be able to get this Municipality back on track if it is financially well managed and sustainable.
Together we can get Nelson Mandela Bay working again.