City underspending hurts economy

THE Zululand business fraternity says the repeated underspending of municipal grant funding on capital projects is translating into thousands of lost job opportunities.

According to local business leaders the regional economy cannot afford such situations to repeat itself every year amid volatile economic times.

This comes as the Zululand Observer reported on Monday that disciplinary action would be instituted against a senior manager at the City of uMhlathuze for failure to spend the Municipal Infrastructure Grant (MIG) on pressing service delivery projects.

Concerned development professional Frans van der Walt said the repeated underspending of funds by municipalities had a direct impact on the local economy and job creation.

‘We are talking millions of rands per annum. This region continues to be a massive loser in attracting investment while the authorities are having legal disputes rather than working together to bring about positive change,’ added Van der Walt.

Local community leader Chris Mkhize said the Zululand Chamber of Commerce and Industry (ZCCI) was one of the most critical local organisations to help tackle municipal challenges.

‘The Chamber has the responsibility to ensure that investors are attracted to the area and not scared off by regular reports of mismanagement,’ Mkhize said.

‘As a solution, and without being labelled an interest group with a political motive, the Chamber needs to be supplied with a complete record of events that led to the reported matter at hand. This is in an attempt to provide some advice or lasting solution to the serious challenge our municipality currently faces and to avoid a recurrence of the anomalies,’ added Mkhize.

Appalled

ZCCI President Sizwe Khumalo said the Chamber was appalled by the reports of the City’s underspending and hoped that current processes would prevent a recurrence.

‘In recent months, Chamber held meetings with the City’s Municipal Manager to highlight business and societal issues and to set up formal dialogue and reporting mechanisms.

‘We are happy that these are progressing well and are certain it will help keep the business sector aware of municipal activities, including budgetary and spending patterns.’

The Zululand chapter of the Afrikaanse Handels Instituut (AHI) said they were willing to assist the municipality to address shortfalls and bring in expertise from diverse fields.

‘Business has the mandate from government to engage with local authorities and offer assistance and mentorship,’ said AHI Zululand Exco member, Desmond Hibbert.