NELSPRUIT – Mbombela Municipality’s adjustment budget was tabled to council during its first ordinary meeting of the year last week.
When the mid-year budget report showed that the year’s budget was underspent in the first half of the financial year, the adjustment was recommended by the acting municipal manager, Mr Sello Ditshego.
In the report, it was recommended that austerity measures be implemented to effect a turnaround of the municipality’s financial situation, which had been exacerbated by forfeiting R127 million in unspent conditional grants.
Last week, National Treasury also notified the municipality that another R115 million due to Mbombela as part of its annual municipal infrastructure grant (MIG) will be withheld due to its underspending of the grant paid out for the year so far.
Mr Joseph Ngala explained this was not considered in adjusting the budget, because the matter had not been concluded.
“National Treasury has indicated clearly that the municipality still has to make representations on how this matter will be resolved. As we speak, our team is at treasury for that meeting and we are hoping for a positive resolution in the matter.”
Treasury noted that the proposed withheld funds would not affect the payment of Mbombela’s MIG in the next financial year. In the same meeting, a motion tabled by the DA to compel Cllr Cathy Dlamini, executive mayor, to request intervention into Mbombela’s affairs, was defeated when not one ANC councillor voted in its favour.
Ngala called it indicative of council not having any doubts about the capabilities and the leadership provided by the executive mayor in leading the municipality.
