Mangaung Moody's downgrade a devastating ANC-made situation

7 August 2019

The decision by Moody’s today to downgrade the credit rating of the Mangaung Metropolitan Muncipality (which includes Bloemfontein, Thaba Nchu, Botshabelo, DeWetsdorp, Wepener and Van Stadensrus) by 3 notches to B3 is a devastating blow to Mangaung through the reckless governance failures of the ANC in the Metro.

This downgrade is a sad testimony to the culture of maladministration and poor governance that has been the hallmark of the tenure of ANC mayor, Olly Mlamleli. It is extremely unusual for Moody's to issue such a severe downgrade, except in circumstances of great concern for the state of governance, which clearly the ANC has delivered.

Moody’s has stated that the B3 rating signifies a higher risk of “default”, greater risk to investors and that investment in the circumstances will be deemed to be “speculative” in nature “subject to high credit risk.”

The DA will address this worrying turn of events at an urgent press briefing tomorrow in Bloemfontein. We will announce action to be taken, in the face of ANC inaction.

The DA rejects the new normal in Mangaung, where residents go without water for days every month, with the bulk water supplier of the Metro, Bloemawter, restricting water supply to 30% due to non-payment by the Metro. The ANC government is effectively denying residents a constitutional right to water.

Maintenance of infrastructure like roads, street lighting and other basic services like refuse removal are taking place less and less frequently.

This credit rating downgrade will undoubtedly turn away what investment the Metro may have attracted, constricting the local economy and jobs.

The provincial and national government has over the last year taken a half-hearted approach to the failures of Mlamleli’s administration by introducing assistance-plans, rather than real interventions.

The DA in Council has warned since the beginning of 2017 that the decline in the financial and corporate governance in the Metro would end in a total collapse and has argued for certain basics like proper debt collection and payment of bulk services to be prioritised as the foundation for a turn-around.

This advice has been ignored.

We will outline further action for the residents of Mangaung, at tomorrow’s press briefing.

Issued by Hardie Viviers, Caucus Leader DA Mangaung, 7 August 2019