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Political interference, poor management: reasons for Moody’s downgrading

MOODYSR - Political interference, poor management: reasons for Moody’s downgrading

Political interference and poor management are some of the reasons businesses have cited for Moody’s downgrading Mangaung Metro’s credit rating.

The latest development has sparked economic uncertainty as the Metro now plans to intensify revenue collection.

It owed R4-billion.

36% of that debt comes from government departments, businesses and the municipality which is unable to meet its financial obligations.

An Economist from the Central University of Technology’s Bloemfontein campus Mgcinazwe Zwane says national treasury warned them of this back in 2017…

“Service delivery is very poor. There is poor governance. Where have you heard of a metro that tenders out rubbish collection? There are water cuts and we are told lies now and then that there are pipes being cleaned but we know very well that Mangaung owes Bloemwater millions of rands due to non-payment of water bills.”

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