In the EXCO and full Council meeting held on Thursday, February 23, Councillor Abbas Warasally of the Inkatha Freedom Party (IFP) questioned Alfred Duma Local Municipality on the Adjustment Budget.
The IFP, as the majority opposition party – as well as other opposition parties – did not support the Adjustment Budget.
This is the financial situation at Alfred Duma Local Municipality with regards to the Adjustment Budget and these are the questions that were posed to the municipality by Cllr Warasally.
Budget item submitted on Tuesday (21/02/17) – this is in contravention of the 7 DAY Standing Rules of Council.
The municipality is now using its cash-backed reserves to fund the capital budget, which increased by R19 million to R108.9 million in one financial year. The municipality has over-committed funding which will burden the paying ratepayer.
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The municipality has a cash coverage ratio of 0.79 months and will soon be placed under administration. National Treasury prescribes that municipalities have cash coverage of three months (money in the bank).
Security Costs: R6 million spent in the first six months of the financial year. An extra top-up of R4.5 million now given in the Adjustment Budget. Please provide a breakdown of how these costs are spent.
Events in the Mayor’s Office have increased by R6.8 million. Please provide a breakdown of all events and amounts paid.
How much has been spent on the Munsoft financial system to date, and how much is owed to Munsoft? There are additional amounts of over R4 million allocated now to the capital budget.
How many consultants were appointed this financial year and at what cost?
How much on the Adjustment Budget has been allocated to the rate-paying areas within Alfred Duma Local Municipality?
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