Mangaung Metro pays attention to adverse report as released by Moody’s

MEDIA ADVISORY: RE: Mangaung Metro pays attention to adverse report as released by Moody’s

The City has noted with concern the adverse report as issued by the credit rating agency, Moody’s last week. The report is receiving the utmost attention in the city since it does not only send a negative message to the public, but also causes a panic amongst potential investors in the Mangaung Metro. The Executive Mayor, Cllr Olly Mlamleli, will be convening an urgent meeting amongst senior officials in the city with the intention of interrogating the details of the report and the immediate steps that would be taken.

“I view this report in a serious light and as a collective in this institution, drastic measures have to be undertaken in order to us to restore the investor confidence and assure service delivery,” said the Executive Mayor.

In July 2018, with support from National Treasury, Mangaung Metro implemented its financial recovery plan aimed at improving the metro’s financial performance. It is Moody’s view that the financial recovery plan that the Metro developed with National Treasury did not so far improve the overall liquidity position of the city.

Part of the focal areas that will need the City’s immediate attention will be to relook at the financial recovery plan and assess the weaknesses; which have brought challenges in implementation. This will include looking at our revenue collection strategy and matters related to good governance. This is to ensure that as we go to the next assessment by Moody’s, the situation would have improved significantly.

The City acknowledges that while the credit profile of the metro is adverse and shows weakness, the situation is not dire as we are still able to attend to mandates and meet deadlines such as employee costs which consist of salaries and allowances, third party payments and SARS. We are also ensuring that despite the challenges, mandatory services such as water, electricity and refuse removal are provided to residents of Mangaung and that these are services we will not compromise.

Residents of Mangaung will be kept abreast of developments in this regard.

Ends.

Issued by: Call Centre: 0800 111 300
Qondile Khedama
GM: Communications
Mangaung Metro Municipality