Today, July 31, is budget D-Day for Endumeni Municipality. After numerous deadlocks, KwaZulu-Natal Finance MEC Francois Rodgers extended the deadline to July 31, warning councillors that failure to pass a funded budget could result in the municipality being placed under administration.

Pressure mounts on council

The municipality has now failed to adopt its budget five times, most recently at a council meeting on July 13.

Rodgers has called for an urgent meeting with Endumeni Mayor Mcebo Mkhize to determine why the budget remains deadlocked and to help find a solution before the deadline expires.

Both ANC and DA councillors have continued to oppose the budget, arguing that it is unfunded, does not adequately address service delivery and has not been meaningfully amended since it was first tabled in May.

Endumeni Chamber of Business chairperson Alan Schonken has also rejected the budget, saying the municipality’s Eskom debt exceeds its projected revenue, making the financial plan unsustainable.

KwaZulu-Natal Treasury has reiterated its availability to assist the municipality in preparing a credible budget that complies with the Municipal Finance Management Act.

“The approval of a funded and legally compliant budget is critical to ensuring sound governance and sustainable service delivery,” Rodgers said.

It is understood that the DA has put forward several points to be considered before they would agree to passing the budget. The points include a ‘proper Eskom payment plan’ to pay off the half a billion Rands debt, to pressurize Government Departments into paying the municipal debt, said to total around R28-million, among other issues.

The ANC is meanwhile wanting to put forward a motion of no confidence in the Mayor.

If the budget is not passed by July 31, the provincial government has warned that it will invoke Section 139(4) of the Constitution, placing Endumeni under administration and assuming responsibility for the budget process and key aspects of municipal governance.

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