The cash-strapped Newcastle Municipality is currently taking steps to secure yellow plant machinery through local service providers. This is set to enhance service delivery and strengthen the government entity’s financial standing.
Newcastle Municipality’s Executive Council member, Councillor Faizel Cassim, explained that the decision to secure the yellow plant was made at a council meeting on Wednesday, 31 July 2024.
“People usually think a yellow plant is linked to roads. But it also involves back actors, graders, trucks, water tankers and sewer tanks, which we are aiming to get,” said Cllr Cassim.
Following the approval to acquire these vehicles during a council meeting on Wednesday, Cllr Cassim noted that the Municipality initially struggled to secure the necessary funding from its banking facility due to its financial standing.
“Four service providers then got on board to procure the machinery for the Municipality, and we will be paying the service providers back. But after 36 months, the yellow plant will belong to the Newcastle Municipality,” explained Cllr Cassim, adding that the yellow plant would set the Municipality back by R84 600 000.
As the Newcastle Municipality prepares to acquire new machinery in the coming months, Cllr Cassim emphasised that the municipality deemed the equipment necessary due to the exorbitant monthly costs associated with the current machines.
“A normal bakkie alone costs the Municipality approximately R25 000 a month to hire, which means the Municipality will be saving a substantial amount of money a month, which can rather be used for service delivery,” emphasised Cllr Cassim.
Additionally, he mentioned that the acquisition of the yellow plant equipment would expand and enhance the Newcastle Municipality’s asset base.
Moreover, Cllr Cassim emphasised that collaborating with service providers to secure this equipment would benefit the Municipality by saving costs, expanding its assets, and allocating additional funds for service delivery. By owning its own yellow plant equipment, the Municipality would also improve its response time in addressing service delivery issues.
“At certain times, if a service provider has not been paid on time, it makes it difficult for us to carry out service delivery as the service providers refuse to send out their machines to the site and this in turn hampers service delivery. If we have our yellow plant, this will not be an issue and we can attend to a problem immediately,” explained Cllr Cassim.
As the Newcastle Municipality now works with four service providers to secure R84 600 000 for its yellow plant equipment, what are your thoughts on the above? Do you feel this is a good strategic move?
Share your views in the comment section below.
Comments 5
WHAT HAPPENED TO THE 5 TWIN CABS BOUGHT FOR SERVICE DELIVERY…………. WHY IS THIS MUNICIPALITY HIRING TRUCKS????????
I am also perplexed as to what type of work bakkie costs R25000 per month in rent, and why it was never bought…
If you purchase NORMAL single cab bakkies, you can purchase FOUR for R25000 per month.
Or is it another shady business deal, as is the norm?
Don’t forget to insure the equipment
Congratulations is in order maspala.
It’s good to learn about information like this which has good intentions. Service delivery and cost savings. I really hope that there is going to be a strict budget monitoring and indeed uncompromising service delivery. I am a migrant worker based in Johannesburg and my house is in Osizweni. It pains me to see piles of rubbish opposite my house and papers being blown by wind into my yard and flies and rats infesting themselves being accompanied by unbearable smell.