One of the country’s poorest municipalities is planning to outsource the provision of electricity and water services at a cost of R735m, the Western Cape government said on Monday.
However, the province is mounting a legal challenge to stop the Kannaland municipality in the central Karoo from “incurring massive liabilities that it simply cannot afford”, the provincial government said.
“There are ongoing efforts to push through a contract with a private entity for the provision of electricity and water services and infrastructure at a cost of hundreds of millions of rand that would bind the municipality for more than 25 years,” said Anton Bredell, Western Cape minister for local government, environmental affairs and development planning.
“This when the national and provincial treasuries have advised the municipality that they have not followed due process nor ensured the process followed was fair, transparent, competitive and cost-effective,” Bredell said.
“It appears the project will come at a cost of R735m, which is clearly not affordable when the municipality’s entire available operating budget for 2020/21 is R174m,” he said.
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Article source: https://www.sowetanlive.co.za/news/south-africa/2021-01-11-karoo-municipality-slammed-for-political-appointments-massive-service-contract/