Eskom was still a hot topic during the annual State of the Municipality Address (SOMA).
Executive Mayor, Cllr Linah Malatjie, could not avoid the Eskom-problem as it plays a huge role in the municipality’s financial make-up.
Cllr Malatjie described the financial state of the municipality well when she said; “If we are to be frank with the community of eMalahleni, the state of the municipal finances remains in the intensive care unit and can at best be described as in a critical but stable condition.”
She said that the municipality is administrating multi- pronged corrective and turn-around strategies anchored on their financial recovery plan as adopted by council to improve the financial position of the municipality.
Some of the key tenets of the financial recovery plan for the next financial year include; proper budget planning with realistic projections, fiscal discipline which must ensure that expenses do not exceed income and the filling of critical vacant posts are required by the auditor general.
However, it is impossible for the municipality to ensure that their expenses do not exceed their income in the coming year.
In 2019/2020, they expect revenue of R3.4 billion as approved by council.
This reflects an increase of R437.2 million when compared to the revenue adjustment budget for the 2018/19 financial year, which was at R2.9 billion.
However, the operational budget provides for a total operating expenditure of R3.9 billion for the 2019/20 financial year.
“That means we expect revenue of R3.4 billion and expenditure of R3.9 billion. Therefore, we will spend R495.2 million more than we earn,” she explained.
When you divide R495.2 million by 365 days, it means that the municipality will spend a surplus of roughly R1.4 million daily – money which they do not have.
This paragraph contradicts the financial recovery plan pillars.
“But there is a simple solution to ensure a steady income from residents. The municipality should take a closer look at the billing system that has failed them the past few years. Residents are entitled to accurate, timeous and understandable bills, which the municipality could not deliver so far. This resulted in residents failing to pay their service accounts as they do not receive accurate accounts,” said Mr John Cornish, a resident who has numerous problems with his service account.
There is, however, a bit of light at the end of the tunnel as the municipality is currently paying-off just over half of their creditors on time.
Cllr Malatjie is proud of the 55% of payments made for invoices paid within 30 days from date of receipt of the invoice.
The municipality is aiming to pay 80% of invoices within 30 days in the next financial year.
A sigh of relief came from municipal workers as their salaries were also paid within the prescribed period. That also includes all related third party payments.
“Although we got a qualified audit opinion, the findings are moderate in their tone compared to the previous financial year’s – giving us room for improvement. Our demand to the administration is nothing less than unqualified audit outcomes in the current financial year,” stressed Cllr Malatjie.
Service delivery also earned a spot in the mayor’s address.
“Given the magnitude of historical challenges we have inherited, it might appear that we are moving at a snail’s pace, but in truth, there are good examples of massive service delivery milestones. We are pulling out all the stops to build internal capacity to conduct effective planning, delivery, operations and management of municipal infrastructure for sustainable provisioning to at least a minimum level of basic services underpinned by the improvement of setting high standards over time.”
Water was next, and in response to the challenges of portable water – the mayor said they have embarked on various short-to-long term water augmentation interventions such as effective use of surface water.
Two mine water reclamation schemes have been commissioned with Anglo American Corporation scheme providing water in the greater Emalahleni, and Glencore scheme providing water in Phola and Ogies.
In respect of the Doornpoort water supply, Eskom has donated Doornpoort Dam to the municipality – this dam can safely produce 10 mega litres per day.
Developments are at an advanced stage in terms of finalising all the compliance and technical requirements.
The Highveld water supply scheme in the strategic development areas of Empumelelweni, Siyanqoba and Kwaguqa receive mainly a portable water supply, hence the consistent supply interruptions.
The solution is to construct a water purification plant in close proximity to Highveld Industrial Park, which will be beneficial to the above mentioned communities and businesses. Negotiations are underway with the management of Highveld Industrial Park.
Cllr Malatjie highlighted another initiative whereby high water users, such as industries, are being engaged to switch over from utilizing potable water for their processes.
This exercise is expected to provide a relief in unlocking more potable water to be redirected to residential development for consumption. Engagements in this regard are well on track.
The municipality has also applied for an increased raw water obstruction permit from the Witbank Dam to the Department of Water and Sanitation, to meet both current and future demand – but first the municipality needs to embark on an aggressive water distribution loss reduction program for the application to be considered.
There is no quick fix to save eMalahleni, however Cllr Malatjie is confident that the tide is turning and she predicts a turn-around in the near future.
NOTE 1:
Service delivery issues
32% community is worried about water.
21% of the community is not happy about the housing situation.
13% of the community complained about the roads.
9% of the community is unhappy with sanitation.
NOTE 2:
According to Statistics South Africa (SSA) the municipality had a population size of just over 455 thousand people in 2016, making it the third largest population in the province.
Unemployment is standing at 27.1%, compounded by population growth projections of 700 000 by 2030.
NOTE 4:
Research has shown that the SMME (small, medium and micro-enterprises) sector is the biggest employer in all countries with developing economies. Based on these research findings, the municipality have planned to develop a comprehensive support package for small and medium enterprises, and cooperatives with special focus on youth and women owned companies – including support for people living with disabilities.
NOTE 5:
The 2016 statistics already showed that in our municipality:
95.3% households have access to water
81.9% have proper dignified sanitation,
90.1% households are connected to the electricity grid,
63.7% had access to refuse removal services.
Between 2016 and now these figures could have improved greatly.
NOTE 6:
The municipality prides itself in investing R1.3 million in most prestigious institutions of higher learning to cover tuition fees, accommodation and basic necessities to 25 young people who are funded through the mayor’s bursary scheme.
NOTE 7:
To date, 2 951 domestic water meters have been installed, and 122 commercial and industrial bulk water meters installed in the budget year 2018/19.
NOTE 8:
Emalahleni Local Municipality has many more hills to climb with an estimated housing backlog of 51 256.
To date, 3 200 beneficiaries have received and are occupying their houses.
