Madam – Mayor exposes financial crises and Treasury refuses additional loans.
Unlike the previous Mayor who seemed to focus on his and his administration’s achievements the “record” budgets as well as creating an impression that the town’s (City) financial status was healthy, the present Mayor at the IDP meeting held in April 2017 spoke about the financial crises Newcastle finds itself in.
Newcastle’s reserves are now depleted. National Treasury has refused Newcastle additional loans because Newcastle is already “over borrowed” and Newcastle’s draft budget was not approved by Provincial government as it was unfunded.
Treasury: Read more
https://newcastleadvertiser.co.za/118297/newcastle-mayor-delivers-20172018-draft-budget/
The budget had to be “relooked at” and major cuts had to be made (budget cut to the bone) but despite this over R200 million deficit was budgeted for. It must be noted that the maintenance of infrastructure was reduced to less than one third of what government stipulates. The Mayor stated that this means that we would have to get used to things like more potholes and grass not being cut and that we would have to accept the fact that as equipment breaks down there may not be sufficient funds to repair them.
To improve the situation (and this is a directive from government) the payment factor will have to be improved by forcing those households who can afford it to pay for municipal services and those who fall under the minimum income to register as indigents so that they can be exempted from paying for their services. Even if this can be achieved it would take many years to get out of this situation.
Some people, who are obviously mis-informed, seem to be placing the blame of Newcastle’s financial crises on the new Mayor and asking for the previous Mayor to return, but the question should be asked, who got Newcastle into this situation. It was the previous Mayor and his administration.
We as the Newcastle residents should support the Mayor in his endeavour to turn the situation around. The Mayor must however, know that we will be watching him and his administration for anything untoward and that he does his share in curbing unnecessary expenditure such as overseas trips, lavish meals at functions, sponsorships where only select people would benefit financially, S&T, and road shows etc.
Peter Hair
