Posts tagged with 'outstanding debt'

 

Cash-strapped Road Accident Fund struggles to pay billions in outstanding debt – This is just another SOE that is collapsing under ANC-regime’s rule

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As thousands of road accident victims are anxiously waiting to be compensated by the cash-strapped Road Accident Fund (RAF) following court orders in their favour, the Gauteng High Court, Pretoria, is expected to soon deal with the fund’s inability to pay up.

Hundreds of claimants recently turned to the court where they had obtained an urgent order to attach eight of the RAF’s Absa bank accounts. The bank was ordered to use the proceeds from the accounts to pay the 346 injured victims.

The RAF in turn headed to court last month, in which it wanted this order lifted, as it said it simply couldn’t afford to pay these claimants, as its outstanding debt was more than R17billion. The fund said it couldn’t operate without its bank accounts as it is was struggling to stay afloat.

This application was not entertained by the urgent court, which meant that the bank accounts remained attached. But it came to light that the RAF then instruct
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Soweto’s huge debt burden amounts to more than R17 billion, where illegal power connections are more the rule than the exception in residential areas

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Soweto has been identified as the great sinner when it comes to outstanding debt to Eskom. The latest figures show that Soweto’s debt to the power provider is over R17bn.

Last week, technicians threatened that they would no longer perform repairs in neighborhoods where their security is threatened, areas effected including  Soweto.

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Junk status winks for Mangaung Metro with liabilities exceeding assets; officials receive generous salaries and cellphone stipends, while levels of service delivery are non-existent

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The ANC-controlled Mangaung Metro faces junk status after Moody’s rating agency said further downgrading would be considered if the municipality do not urgently get its household in order.  

The Bloemfontein municipality is in truth already bankrupt with liabilities exceeding assets of nearly R1bn and with over R6bn of outstanding debt.  In fact, Moody’s indicated on their website that the metro was downgraded to Ba3 status on May 2, 2019.

In their response, the metro says a downgrade won’t affect service delivery and a financial recovery plan is in place. They argue that the weak economy, rising unemployment and increased water and electricity tariffs are the setback to their finances.

Meanwhile, it appears that the metro’s salary bill amounts to about R160 million a month, with a mobile phone stipend of R3’200 for about 70 councillors, each. In terms of debt, business enterprises owe the metro R1,6bn, residents
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