The Govan Mbeki Municipality’s council has adopted the 2023/24 Integrated Development Plan and a budget of more than R3-billion for the coming financial year which will begin in July.
This budget and IDP council meeting was held on May 31 in the council chambers in Secunda. The DA voted against its adoption.
The DA said the municipality was presenting an unfunded budget, which is a repetition of their previous budget that contained unrealistic objectives.
When presenting the budget, the Executive Mayor Nhlakanipho Zuma, said they have based the R3b on the total income of the previous year.
“This R3b is inclusive of what we collect and the grants that we are receiving. We are anticipating a total expenditure of R3b.”
According to Zuma, this means anything extra in revenue collection will be a surplus in the municipal coffers, but it will not really reflect as a surplus because of Eskom and Rand Water debt. Zuma said the budget actually indicated a deficit of R3,7b.
“We are owing Eskom and Rand Water over R4b and what we are budgeting will be able to reduce that particular deficit.”
Zuma said the council cannot guarantee that the entire Eskom debt will be settled within the next financial year.
“That would simply be lying to residents. It is not possible to have a funded budget that is inclusive of debt, therefore, our budget is funded with the exception of the debt to Eskom and Rand Water,” said Zuma.
ALSO CHECK: Residents in Govan Mbeki Municipality see red at IDP meetings
The DA councillor, James Masango, said in a statement that despite the municipality’s financial mismanagement and service delivery shortcomings, the budget was passed.
“We reject this budget on the basis that the funding plan has not been modernised to address the challenges with which residents are faced.
“The truth is that the majority of our residents are struggling to make ends meet and the municipality’s economy is on a downward spiral. Charging ratepayers for services that are non-existence is a no-brainer.
“The municipality is losing 35% of its water and 75% of its electricity, yet, there is no plan in sight as to how these losses will be mitigated.
“We believe that the prices of services should be affordable and that the ward committees should engage and advice on the affordable rates for communities,” said Masango.
He added that it is concerning that the municipality is still struggling with the implementation of debtors and creditors policies to achieve a maximum revenue collection.
Zuma said the municipality should get part of the money owed by the consumers and said the municipality will apply for the Eskom debt write-offs for municipalities to the National Treasury.
Tariff increases for 2023
• Electricity: 15.01%.
• Water: 7.3%.
• Refuse removal: 5.3%.
• Sewerage: 7.3%
• Miscellaneous tariffs: 5.3%
• Property taxes: 5.3%.
