Endumeni Mayor laments poor economic growth in run up to passing of new budget

Poor revenue collection due to a culture of non-payment, electricity theft, vandalism of infrastructure, high unemployment and mushrooming informal settlements is impacting on Endumeni’s ability to function.
This stark reality was highlighted at a draft budget proposal and Integrated Development Plan (IDP) ‘roadshow’ meeting in the Moth Hall last week.

Mayor Ndlovu was absent due to illness and the meeting started almost an hour later than advertised.
There was a smattering of people in the hall.
More arrived when officials sauntered in to take their seats.
Speaker Andile Nsibande and Ward 2 Councillor Ameena Sadeck addressed the meeting, assisted by Municipal Manager Sithembiso Ntombela.

Electricity theft continues to be one of Endumeni’s greatest bugbears, with the loss totalling R36,734,108 over the first eight months of the financial year from July 2023.
In Glencoe, the loss due to theft is at 35% and in Dundee 29%.
In a bid to cut the horrific theft of electricity, the municipality has introduced an electricity enhancement programme to monitor distributed power and monitor damaged/unsecured electrical kiosks, among other measures.

Ntombela said that smart metering technology will be introduced, while areas will be identified where there are high losses.

National Treasury is to be asked to fund the smart metering project.
“Further, all large power use meters and all business meters will be replaced with smart metering technology.”
Mayor laments poor economic growth
In his written report, Mayor Ndlovu lamented poor economic growth that is ‘increasing poverty in households and affecting residents to pay their service charges’.
The level of non-payment has forced Endumeni to set aside almost R18 million for the bad debt reserve in the 2024/25 budget.

He also expressed concern over the qualified audit report the municipality received, which ‘raises the red flag and requires us to see that we are not doing something right’.

He urged ‘all of us’ to stamp out illegal practices and reduce non-essential (municipal) spending.
The R472-million budget sees a 5.5% increase in rates, a 6% hike in refuse removal costs, and a 12.74% increase in the price of electricity.
The increases still have to be confirmed at a council meeting to be held by May 31.
According to the presentation, around 32% of the budget goes towards salaries, but critics say that the figure is much higher.

Repairs and maintenance only take up 3% of the budget, while legislation recommends around 7%.
The Government Municipal Infrastructure Grant of R17 million includes construction of gravel roads in Dlamini Village (R5.6 million), the second phase of the controversial Glencoe cemetery project (R5.3 million) and gravel road construction in Herodi (R3 million).

The refurbishment of Argyle Road (R3 million), Dean Mohammed Road (R1.8 million) and Nyembe Street (R1.5 million) have been listed under disaster recovery projects.

Argyle Road has been under fire from opposition parties, who say the road was only rehabilitated two years ago but has deteriorated, with the blame being put on shoddy workmanship.
Reading out a list of social development programmes, Ntombela said these total R4.4 million, of which R500,000 goes to the Dundee July, R350,000 for a Mayoral imbizo and R700,000 to individual ward allocation expenses.
The final budget proposal still has to be taken to the full council following the series of ‘roadshows’ held in all seven wards.

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