KZN social development bank cards blocked over unpaid debt
Amid fears that the government is fast running out of money, a bank has blocked the petrol cards of the KwaZulu-Natal Social Development Department after it failed to repay its millions of rands in debt.
According to sources in the department, the bank blocked the petrol cards after the department failed to pay the financial institution’s two invoices worth R7 million.
The department’s mandate includes rendering social services to vulnerable citizens across the KZN province.
A source who spoke to the publication said officials using the department’s vehicles were unable to access fuel.
We were told that if the vehicles run empty, we should rather park them than go to the petrol stations as the department’s petrol cards would be declined.
“We are extremely worried that the department will not be able to render the much-needed services to the poor, particularly at this critical moment when there are storms destroying people’s houses. It will be difficult for the department to reach the victims of the floods, most of whom will be in need of food, blankets and other items which the department is supposed to provide,” a department employee said.
However, the department’s spokesperson, Mhlabunzima Memela, denied that the department has run out of funds.
“What happened is that there was a technical glitch which resulted in [the department] not being able to pay the bank. As we speak, the matter is being addressed,” he said.
Mhlaba denied that the blocked petrol cards have affected service delivery. “
It’s not like this problem developed several days ago — it’s something which happened recently, and as I said earlier, it’s being addressed. As we speak, department vehicles are on the road, and service delivery is continuing as usual.
The bank blocked the department’s petrol cards on the back of a warning by Finance Minister Enoch Godongwana that the government will run out of money if it did not borrow funds.
Godongwana, who will deliver his medium-term budget policy statement (MTBPS) in the National Assembly this afternoon, had proposed that government departments and entities should start implementing austerity measures in response to the government’s dwindling resources.
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