Nongoma Municipality has recorded a positive turnaround in governance and financial management, according to Mayor Mbekezeli Zondo.

Addressing an executive committee meeting on Friday, Zondo revealed that the municipality’s revenue performance was 39% above the budgeted target at mid-year.

He attributed the improvement to several key factors, including the introduction of the sale of tender documents, interest earned from invested ring-fenced funds, and stronger revenue streams from municipal facilities.

Rental income exceeded projections by 42%, while improved billing on service charges performed 62% above budget.

Zondo, who has been in office for just six months, said the municipality’s mid-year financial position was reassuring and marked a significant shift in governance and financial discipline.

“For the first time in years, the municipality has recorded a stable financial position at mid-year, which reflects positively on the current administration,” he said.

The mayor added that the debt collection rate reached 75% in September and October, surpassing the target by 5%. Although it declined to 66% in December—largely due to reduced payments during the festive season—he expressed confidence that collections would recover to the 75% target in January and February.

Zondo acknowledged ongoing challenges with traffic fines, noting that the relevant portfolio committee has proposed engagements with the Traffic Unit to develop a concrete improvement plan. He added that traffic fines currently form part of the overall 66% revenue collection rate.

He further confirmed that the municipality has received all government grants in accordance with the approved payment schedule, ensuring the uninterrupted implementation of funded projects.

According to the Supply Chain Management report, 232 orders were issued during the quarter, amounting to just over R42 million.

While some deviations were reported—mainly related to fleet management—Zondo emphasised that no fruitless, wasteful or unauthorised expenditure had been recorded over the past two quarters.

On cost containment, Zondo said overtime and standby allowances remain a challenge, but the municipality has successfully curtailed expenditure on travel, accommodation and stationery.

“In terms of cash flow, we have maintained a healthy bank balance of R66 million as at 31 December 2025, inclusive of R11 million in Municipal Infrastructure Grant funding,” he said.

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