Endumeni’s unfunded budget grudgingly passed

Endumeni’s controversial unfunded R422-million budget was grudgingly approved at a recent marathon special council meeting which saw a vote of seven (for) and three (against) with two absentees.

The provincial and national treasuries had given a deadline of May 29 for the budget to be approved amid a myriad of queries.

The municipality is around R65-million in the negative which made the 2024/25 budget proposal unfunded which the treasuries want addressed.

Sithembiso Ntombela, municipal manager, told the meeting that a budget payment plan had been drawn up and sent to the provincial treasury. This is largely dependent on revenue collection. With rampant electricity theft and Endumeni defaulting on its payment arrangement to pay off its Eskom debt, there are doubts that the municipality will be able to meet the plan’s requirements.

Sources told the Courier that in one area in Sithembile, out of around 284 homes, only six legally buy power.

Attempts to cut out illegal power connections have been met with resistance.

Ntombela said Eskom had sent a notice to Endumeni noting the municipality’s payment default.

“We are lagging but have drawn up a new agreement that will ensure that we meet the requirements,” he said.

He added that the municipality ‘had challenges in the financial department following a court wrangle with a service provider’.

Mayor Ndlovu pointed out that to be compliant Endumeni had to pass the budget by the deadline or face losing out on the equitable share from the central government which provides millions of Rands of funding to all municipalities.

Cllrs Zulu and Kheswa (ANC) rejected the budget saying it was unfunded and that the budget and integrated development plan, IDP, and roadshows where communities could give input had not been properly finalised in wards 4 and 5.

“People in my ward and not happy with the projects on the IDP and this was supposed to be sorted out but it has not,” Cllr Kheswa said.

They were also concerned that Endumeni would be unable to pay its creditors because of the dire financial situation,

Cllr Phakathi (ABC) was also against the budget saying a previous meeting where it was resolved that allegations regarding the finance department would be addressed had never been carried through.

Mayor Ndlovu said the majority of wards accepted the budget and IDP which Cllrs Abdool (DA) and Kheswa disagreed with.

It was said there had been an intention to meet again with Ward 4 and 5 residents to address their concerns but ‘the letter from treasury asking that the Council met the May 29 deadline to pass the budget had made this difficult.’

Cllr Abdool said the DA said for the sake of making the compliance deadline and not to affect service delivery the party would accept the budget.

However, he slammed Mayor Nlovu for not arranging executive committee meetings ‘for months and months’ where the budget would have been discussed.

He also said he found fault on virtually every page of the budget and the IDP querying how an expected collection rate of 99.2% on electricity could be accepted.

“There are no cash flow ratios, no cost-cutting measures in place. We budgeted for a matric excellence awards that never happened and a Mayoral imbizo. That imbizo is going to be held days before the budget deadline.”
He said the Mayor and officials should call up another meeting within seven days to attend all the many issues with the budget and IDP.

There was confusion if the DA was supporting or rejecting the budget until Speaker Nzibande called for a vote with the DA and IFP supporting the motion and the ANC and ABC rejecting it.

Tariff increases

A property rates increase of 5,5% was approved

Refuse removal sees a 6% tariff hike while electricity will increase by 12,72% on July 1 depending on a decision from the electricity regulator, NERSA.

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