Tebogo Msimanga |
The Democratic Alliance (DA) in Gauteng noted with concern that the Emfuleni Local Municipality’s bank account has been attached and blocked. Gauteng High Court ruled in favour of the BXCSA company.
The BXCSA has successfully attached the municipal bank account and secured R45 million. Due to insufficient funds in the Emfuleni Municipality’s bank account, the BXCSA has also blocked the account.
DA Member of Parliament Kingsol Chabalala said the legal battle between Emfuleni and the Chinese BXCSA company over the termination of the smart meter contract in the Vaal by Emfuleni has caused more losses to this cash-strapped municipality.
“Emfuleni will not be able to function properly without the attached and frozen bank account as this will have a huge negative impact on the payment of the employees and Councilors’ salaries as well as the payment to Eskom and Rand Water”.
Chabalala said this clearly indicates that the ANC’s Emfuleni Administrator is failing to rescue this municipality from its serious long-term cashflow problems.
“It is also alleged that Emfuleni has another bank account of which its creditors and councillors are unaware.”
The DA said they will continue to monitor the progress of this case and ensure that service delivery is not disrupted.