R161m spent on new flats and free electricity charges

The residents complained about the poor quality of work during the building operations.

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NO charges for electricity! Free electricity! This is the message for the recipients of new flats in Tsalanang Flats in eMbalenhle.
The Bulletin has reported a number of times on the Department of Human Settlements’ project in eMbalenhle. R161m had been pumped into new flats between the old flats at Tsalanang. The residents complained about the poor quality of work during the building operations.
Residents were sometimes hard handed forced to move. Promises were made that the residents could move into the new flats if they could afford it, or receive an RDP house if they qualified and lastly if they didn’t qualify for any of the above they could receive a stand.
Govan Mbeki Housing Company administer the new flats, this is in contradiction of a council decision taken in 2012 not to use Govan Mbeki Housing Company for the administration of any of the municipality’s properties.
The Bulletin obtained a copy of a monthly account dated 1 February 2019. The Govan Mbeki Housing Company (GMHC) issued this account! An entity that should not be administering GMM properties. GMHC was previously run by Mhela Mahlangu, before being appointed as the Municipal Manager in GMM. (Govan Mbeki Municipality took a decision to sell municipal houses that were administered by GMHC and lost R10m by lowering the prices of the houses due to the poor maintenance by GMHC.)
The account from GMHC has no electricity charges! Free electricity. GMM is in dire need to earn revenue from their electricity sales and still residents receive free electricity. GMM owes Eskom more than a billion rand. Rand Water is owed more than R100m.
The inability of GMM to adhere to council decisions will, in the long run, only add to the demise of the municipality. The free electricity to municipal flats will also add to the financial woes of GMM.

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