KDM under pressure as residents question finances and power losses at mayoral imbizo

Concerns over electricity tariffs and transparency dominated a mayoral imbizo in Umhlali, with residents pressing KDM for answers on finances and service delivery.

Last week’s meeting, held at Umhlali Preparatory School, was notably more cordial than previous editions in April and October last year. About 100 residents from Wards 6, 22 and 30 attended, but frustrations remained evident as key issues resurfaced.

A proposed electricity tariff increase of between 9% and 11% drew audible concern. Acting municipal manager Siyabonga Khanyile said KwaDukuza municipality (KDM) had absorbed rising costs over the past five years, adding that the latest cost-of-supply study indicated an increase closer to 25% was needed.

Residents raised numerous questions, particularly around the incomplete Dukuza substation and a perceived lack of transparency, concerns mayor Siduduzo Gumede conceded were largely unanswered.

KwaDukuza Residents Forum (KDRF) chairperson Warwick Chapman said electricity, despite being KDM’s largest revenue generator, was now costing more to supply than it earned. He attributed losses to issues within the electricity business unit, revenue protection unit and the Chief Financial Officer’s office, questioning how the municipality had shifted from a 30% profit to a loss over the past decade while bonuses continued.

Speaking on behalf of the KwaDukuza Organised Residents Alliance, Deon Viljoen highlighted the growing gap between expenditure and service delivery, while Dolphin Coast Residents and Ratepayers Association (Docrra) COO Mary Kassam called for greater transparency to justify anticipated rate increases. She also queried the denial of funding for phase two of the substation and repeated unanswered information requests.

Docrra vice-chairman Brian Pottinger criticised the 17 in-committee items before council, citing limited public oversight. He pointed to ongoing investigations by the Directorate for Priority Crime Investigation and the Special Investigating Unit into a R35-million cyber theft and alleged tender irregularities.

KDRF director Mark Whitehead described frequent power outages in Salt Rock as making the area “like a disco” and called for the suspension of the executive director of electrical engineering services.

In closing, Gumede acknowledged shortcomings, including unaddressed questions and poor management of energy losses. He said rebuilding trust would require action rather than promises.

“There seems to be a lack of trust because of how we behaved in the past,” he said.

Gumede committed to improving transparency, making substation information public and supporting ongoing investigations, while cautioning that not all challenges could be resolved by the current council.