The Democratic Alliance in JB Marks has reiterated its stance that the adoption unfunded budgets and mounting Eskom debt has pushed the municipality to the brink of total collapse.

This after National Treasury withheld funds to various municipalities across the country, which JB Marks Local Municipality, also falls under. This was implemented in terms of Section 216(2) of the Constitution and Section 38 of the MFMA.

According to DA Mayoral Candidate in JB Marks, Prof. Theo Venter, unfunded budgets severely compromise the ability of municipalities to deliver on key infrastructure and service delivery requirements.

“The municipality can’t fund all the programmes it budgeted for due to an over-estimation of revenue collection. The equitable share contributes approximately R795 million to the municipality’s annual budget, almost 30% of its total revenue,” explained Venter.

He also added that the temporary withholding of these funds should serve as a serious wake-up call for the current administration to urgently restore financial discipline and comply with the law.

“The DA also remains concerned that, despite the municipality’s deteriorating financial position, the ANC-led coalition steamrolled salary increases for senior management through Council despite the DA’s objections, while residents continue to experience declining service delivery and growing financial instability.”

Venter is also of the opinion that municipalities that repeatedly ignore the provisions of the MFMA and sound financial management practices place essential services, local businesses, creditors, and residents at risk.

“Sound financial management is not optional but the foundation of sustainable service delivery.”

Hans-Jurie Moolman, the DA Caucus leader in JB Marks had also written a letter to the National Energy Regulator of South Africa (NERSA) in November 2024 stating various concerns related to Eskom debt, which at that stage was at R 565 million. This has now climbed to over R 800 million.