DA strongly disagrees with municipal budget
Despite the serious shortcomings and contradictions pointed out by the DA, the budget was approved.
During the special council meeting on Tuesday, 27 February, the ANC, with the help of the IFP, approved the 2017/ 2018 adjustment budget, despite the serious shortcomings and contradictions pointed out by the DA.
The DA spokesperson for finance, Jaco Holtzhausen, said the DA strongly opposes the approval of this budget as it doesn’t address the real needs of the community of Mogale City. “Money has simply been moved around to make the situation look better. Unfortunately there are no realistic or down to the core adjustments to remedy the municipality’s current financial situation,” he said.
The budget speaks of a saving of R8 million in bulk water purchases due to a decrease in water losses, but then speaks about ageing infrastructure that cannot be upgraded or maintained. The budget indicates a 32 per cent water loss although the DA has reliable information that water loss is more in the region of 50 per cent.
The budget shows an increase of R3,5 million in debtors interest earned from outstanding payments, but then speaks of an increase in collections from outstanding debtors, and an additional R21 million was budgeted for collection costs.
There is a decrease in employee costs, saving on overtime and staff benefits, but there is a 50 per cent vacancy rate in the infrastructure department. This is the very same department that needs to maintain and upgrade our ageing infrastructure to curb the excessive water losses.
The municipality approved a R16 million ex gratia bonus to its employees without a proper performance management system in place.
The budget allows for a new VoIP system costing R5,5 million to bring about a saving of R 3,1 million in telephone costs, but cellphone costs are increased by R2 million. The DA believes that Mogale City currently has a suitable telephone system which is just not managed correctly.
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