The Endumeni Council has asked Provincial Treasury to meet with them after a letter was sent to Mayor Richard Mbatha, highlighting several concerns regarding the 2017/18 budget passed by Council on May 31.
The letter from KZN Finance MEC, Belinda Scott, says the Provincial Treasury had conducted a ‘high-level assessment of the approved Endumeni budget where concerns are expressed over the approved R90-million unfunded budget for capital projects’.
“Treasury recommendations are that the municipality should reduce non-essential expenditure and implement cost containment measures… the budget will not be sustainable as your municipality will be reporting expenditure against an unfunded budget… this will impact on the financial viability of the municipality as well as its ability to deliver services to the community.”
MEC Scott warns that should the ‘Council not take steps to react, she will have no choice but to escalate the matter to the National Treasury to recommend stopping the equitable share transfers to your municipality… the municipality is requested to table these comments at the next Council meeting and provide copies of resolutions taken at the meeting (that will deal with these concerns).’
However, Mayor Richard Mbatha, in a written response to the MEC, pointed out that the comments from Treasury were only received on May 31 – the date on which the budget was passed.

The matter has not been tabled at a Council meeting as the last two meetings have been abandoned – the first one on June 30 ended in chaos whilst the one last Wednesday failed to raise a quorum after the ANC Councillors did not turn up.

“As a result, there was insufficient time to revisit and revise the budget or even arrange for a budget steering committee meeting to discuss these comments by Provincial Treasury.”
Commenting on the R90-million ‘turn key operation’ referred to by MEC Scott, the Mayor confirmed that Chief Financial Officer, Bongani Mdletshe, has asked for a meeting with the Provincial Treasury ‘to clarify our intentions for outsourcing some municipal programmes by appointing a turnkey service provider and work with the municipality to accelerate service delivery.’
“This is in line with national government’s programme of radical economic transformation.”
The Mayor added that there was ‘no engagement meeting on the draft budget or the final budget with the Provincial Treasury whose representatives could not attend the budget steering committees… we request an engagement to clarify other matters raised… to rectify matters for disagreement prior to the report being submitted by Council.”
The matter has not been tabled at a Council meeting as the last two meetings have been abandoned – the first one on June 30 ended in chaos whilst the one last Wednesday failed to raise a quorum after the ANC Councillors did not turn up.
Asked to comment on the budget issue, FC Bester, of the Endumeni Residents Association, said he noted the MEC’s comments with ‘grave concern’.

More on the Endumeni budget:

A response to the Ward 7 draft budget meeting

Mayoral Iimbizo goes ahead as ‘per budget’

Endumeni Council passes budget but not without a hiccup or two .

“At the budget roadshows, there was no input regarding the intention to use a turnkey service provider and to have R90-million of unfunded expenditure. We would like a full explanation as we fear the intention is to raise huge loans against the assets of the municipality which do not belong to any official or Councillor but to the residents who pay service charges with their hard earned money.”
He said he would be writing ‘letters of concern to the MEC and Public Protector’.