Opposition parties and civic groups have criticised the municipality’s adjustment budget for the 2025/26 financial year, saying residents will once again pay the price for poor financial management.

KwaDukuza mayor Siduduzo Gumede presented the revised budget at a council meeting last Thursday. It shows the municipality is facing an operating deficit of R219.6-million.

Gumede said the shortfall is mainly due to rising bulk electricity costs and high energy losses, which reached R242-million in the first half of the financial year.

To cover the gap, the municipality will use money from its cash reserves.

Spending on capital projects has increased from R230-million to R272-million, mainly because unspent disaster recovery grants have been carried over.

Gumede said higher committed and small changes in revenue led to the adjustment. Total operating expenditure is now R3.22-billion, while expected operating revenue is about R3.01-billion.

He said the municipality must urgently deal with electricity losses in order to reclaim its former glory.

A task team, led by the chief operating officer, has been set up to focus on energy losses and other revenue problems. Council will also hold an energy indaba to discuss solutions.

On a more positive note, Gumede said refuse revenue had increased by R8-million following desktop valuation exercises and Section 78 adjustments, which he said signalled improved billing efficiency.

The Democratic Alliance rejected the budget. Caucus leader Privi Makhan said it does not prioritise basic services such as fixing potholes, repairing streetlights and stabilising electricity supply.

She questioned a R12-million increase for security services: “We are unclear if this is to protect critical infrastructure, or to protect politicians?” she said.

The Inkatha Freedom Party also raised concerns, saying high electricity tariffs, damaged roads and poor cleanliness are hurting investment and job creation.

The Dolphin Coast Residents and Ratepayers Association said it was not surprised the municipality was using its cash reserves. Chairperson Deon Viljoen said this money should be used for maintenance and basic services, not to cover ongoing problems.

“We cannot fathom how council continues to tolerate (and reward, with bonuses) the leadership and management failures of the electricity business unit in dealing with energy losses. We are tired of hearing about plans, indabas and task teams when plans to deal with losses already exist but are not being implemented and executed,” he said.

ActionSA also criticised the budget. Caucus leader Nel Sewraj said the deficit affects every ratepayer and claimed residents’ money is being used to pay Eskom instead of improving services.

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