The ongoing theft of electricity is crippling Endumeni Municipality in its attempts to balance the books.
Power valued at over R8,6-million was stolen in the first seven months of the current financial year that started on July 1 2015.
In her executive summary of the proposed 2016-2017 budget, Bonga Mkhize, chief financial officer, said Dundee (town) was responsible for 50% of the theft, Sibongile 23%, Glencoe 15% and Sithembile 10%.

The non-payment of rates and services has forced Council to make a bad debt reserve of over R6-million.

“The loss of revenue caused by theft of electricity cannot be over emphasized. Council has taken steps to curb the loss by hiring an auditing firm to check every meter in the municipal area. The cost of this is R2,5-million. While there have been positive results, there is as still a long way to go.
“The reality is that the theft of electricity will eventually cause a major cash flow crisis if not addressed.
“Councillors and members of ward committees have all been made aware of this crisis and community awareness initiatives implemented to drive the process.”
The non-payment of rates and services has forced Council to make a bad debt reserve of over R6-million.
This and a deterioration in the local and national economy has pressurised the municipality into making tariff increases that include a 8% hike in rates, 7,5% increase in the refuse removal tariff while electricity goes up 7,6%.
The operating budget is around R262-million and the capital budget R37-million of which R14,5-million is from the central Municipal Infrastructure Grant fund.
Mayor Thulani Mahaye commented that the draft budget had been ‘compiled with due consideration to the constrained fiscal environment‘.

“The Back to Basics programme launched in 2014 is aimed at improving service delivery. It involves monitoring of services and to make municipalities stronger and accountable. Meter-tampering needs to be seriously addressed … it is an unlawful practice.”
FC Bester, Endumeni Residents Association chairman, said the draft budget had left him ‘terribly unimpressed.’
“Clearly, more needs to be done to curb meter tampering. I was told that some months ago, a spot check was done on shops on Willson Street and 14 businesses were found to have ‘bridged’ their meter. One guy had even connected his fridges and other equipment to the nearby traffic light.”
Mr Bester called for offenders to be ‘named and shamed’ and said he wanted feedback and the municipal employee who was recently caught for tampering.
“The tariff increases are above inflation.
“With Council paying a suspended municipal manager over R80 000 for over two years, acting managers in all departments it is clear that the ANC-led Council – with the help of a single NFP Councillor – has left the Endumeni Council in tatters.
“And the state of the town and its finances proves it.”
He said he and his ‘committee will be seeking a one-on-one meeting with Councillors and officials to discuss the draft budget’.