Following a recent interaction with the city’s financial management, ward 97, Councillor André Beetge, gave word of the municipal public accounts committee. According to Beetge, while corruption, wasteful and fruitless expenditure are indeed a reality, likewise the fact that should the municipality fail, the suffering will be felt by all, not only by some.
“It is already a well known fact that approximately 10 per cent of the population carry 100 per cent of the expenses, but with Covid-19 entering the picture in the first quarter of 2020, collections for services rendered in March of the same year plummeted to an all-time low. This rose in April with a marketable increase towards December, however, this reflects only a collection on what was billed in the previous user month, but excludes arrears.”
It would appear the municipality’s relief measures that included a stay on tariff increases, a moratorium on disconnection, concessions for certain sectors and refraining from raising interest on arrears, have been exploited by many.
“The reality check of this being that expenditure needs to be cut somewhere and matters have to be reprioritised by affordability. This has already led to outsourcing reduction in favour of attending compliance in-house. This however also not the ideal solution, given that the municipality is further forced to operate staff on a staggering roster due to Covid-19 regulations enforced under increased pressure from labour unions. The effects of this can be observed and felt by the man on the street.”
With cash on hand dropping to an all-time low of less the 30 days, all expenditure is done under the watchful eye and in conjunction with National Treasury.
“As much as there is an increased number of complaints of matters not being attended, or not attended quick enough in line with expectation, the reality remains that should collections not drastically increase by people paying their bills, the city could well find itself under administration, possibly sooner than later. “To encourage and better facilitate this, the city has extended an opportunity for those in arrears to agree to pay their arrears over 24 months, the detail of which can be found at the local Sizakala Centre (Gracedale road).”
ALSO READ: Ward 97 councillor, Andre Beetge urges residents to adhere to the level three restrictions.
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