RUSTENBURG – Rustenburg has not fully recovered from the 2014 protracted strike in the platinum mines, executive mayor Mpho Khunou said on Tuesday.

“Prior to the protracted strike, Rustenburg had the third fastest growing economy out of eight metropolitans in South Africa and in 2012 contributed 4.9% of the South African GDP [Gross domestic product ],” he said tabling the 2016/2017 budget.

He said during the 2012 and 2014 strikes in the platinum sector, the municipality reported a deficit of R423-million when most of the businesses were struggling financially.

“The payment ration has been under tremendous pressure from about 2012 when the mines started with retrenchments. The increase in provision for bad debts in 2013/14 due to the prolonged strike reduced the net debtors from R687-million in 2012/13 to R316-million. The non-payment of services for the five months starting at the end of 2013 meant that bad debt provision had to be increased.”

The Association of Mineworkers and Construction Union (Amcu) waged a protracted strike in January 2014 in the platinum mines in Rustenburg, North West and Northam in Limpopo.

On 23 January 2014, almost 70 000 platinum mine workers went on strike at Impala Platinum, Anglo American Platinum and Lonmin Platinum Mines demanding a minimum monthly salary of R12 500.

The strike ended in June when the union accepted an increase of R1 000 for the first two years of the three-year agreement. The increase for the third year was R950.

Prior to the 2014 strike, there were wildcat strikes in 2012. In August 2012, 44 people were killed during a violent wage strike at Lonmin in Marikana, 34 of the miners were killed on August 16, 2012 when the police opened fire. Ten other people, including two policemen and two Lonmin security guards, were killed in the preceding week.

Khunou said the inability of consumers to pay for services in 2014 was confirmed by the accounting deficit and cash operating deficit.

“The municipality had to pay for bulk electricity from Eskom and bulk water with minimal payment from residents for at least five months. This impact was felt further in 2015 and beyond as consumers had to make arrangements to start servicing their debt. The revenue for electricity sales had declined by R164-million during the strike.”

The opposition Democratic Alliance acknowledged that there were serious revenue collection issues in Rustenburg.

“We have serious revenue collection. Revenue is collected from your traditional Rustenburg [town], it will be better if revenue was also collected from rural areas,” said caucus leader Gert du Plessis.

The Freedom Front Plus said Khunou had tabled a fair budget.

“This is a fair budget taking the economic circumstances of Rustenburg…councillors must do their job and keep to this budget,” said De Wet Nel.

Khunou tabled a R3.886-billion budget for the 2016/17 financial year.