Editor – Not 24 hours after adopting Alfred Duma Local Municipality’s Second Adjustment Budget for the 2017/2018 financial year, with the Democratic Alliance councillors and other opposition parties in council voting against the motion, the majority party members went home to pack their bags for a two-night / three-day conference at a resort in the Drakensberg, costing the ratepayer some R350,000.
uThukela District Municipality and their councillors were no better, as they too passed uThukela District Municipality’s Second Adjustment Budget for the 2017/2018 financial year, restricting expenditure on “non-service delivery related expenditure be stopped with immediate effect”.
They too booked a two-day / one-night conference at a Drakensberg resort which set back their budget by R200,000 after being advised by the finance department that there were no monies available, suggesting that the conference be held at the council boardroom here in Ladysmith.
Both municipalities are sailing very close to the wind, as they do not have a cost average ratio of three months as required by National Treasury.
Our local municipality cost coverage ratio is 1.87, which places the municipality at risk of not being able to meet its current and future financial obligations. The district municipality is far worse off with regards to their cost coverage ratio.
Despite noting the negative financial implications that the local municipality does not have sufficient cash-backed reserves to fund the capital budget or the high value of depreciation of R175 million, and further noting that this would impact negatively on the availability of reserves to support future capital budgets and the day-to-day operations of the municipality, the council has purchased a new XL Mercedes for the mayor and two BMW X5s for the deputy mayor and speaker.
Click to receive news links via WhatsApp. Or for the latest news, visit our webpage or follow us on Facebook and Twitter. Join us there!
