KwaDukuza Municipality is facing a financial crisis due to escalating energy losses, prompting urgent calls for intervention.

The 2024/25 mid-year budget and performance assessment report, presented by Mayor Ali Ngidi, revealed alarming figures on electricity expenses and consumer debt.

By December 2024, the municipality had spent R640-million on electricity, an over-expenditure of R129-million. Energy losses surged to 28.43%, far exceeding the industry norm of 6-12%, marking a troubling rise from last year’s 26.47%. These losses were attributed to infrastructure issues and electricity theft.

Consumer debt also climbed to R390-million, with many residents struggling to pay due to high living costs and unemployment.

Municipal officials warned that debt recovery would remain difficult given ongoing economic uncertainty. To mitigate financial strain, the municipality plans stricter enforcement of payment regulations, increased inspections of faulty meters, and back-billing for electricity usage.

Despite financial difficulties, the municipality maintained a 98% revenue collection rate. However, ActionSA caucus leader Nel Sewraj dismissed this as misleading, saying robust revenue collection (including gains in refuse collection and an additional R13-million in property rates) masked deeper issues.

“Although robust revenue collection may keep the books looking solvent for now, mounting energy losses are set to push KwaDukuza into a deficit. The current financial strategy is unsustainable, and the cost will inevitably be passed on to residents. The current approach lacks both accountability and a commitment to genuine reform. Until significant reforms are implemented, ActionSA will not support any budget,” said Sewraj.

Democratic Alliance caucus leader Privi Makhan echoed these concerns, calling for an urgent review of security costs, which she argued should be redirected toward infrastructure protection instead of bodyguards for politicians.

“The electricity crisis has crippled the local economy. Despite a large budget for electricity capital projects, infrastructure keeps deteriorating. The municipality has lost R250-million in just six months, yet no officials have been held accountable. With only 26% of the Municipal Infrastructure Grant spent, project delays and potential rollovers are major concerns,” Makhan said, adding that she was concerned about the backlog on road and streetlight maintenance.

“Consequence management is nonexistent in KwaDukuza. Year after year, the same issues resurface with no action taken. Residents deserve better accountability,”
she added.

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