Polokwane passes R6 billion budget but ‘where is the money going’?

The Polokwane municipality in Limpopo has passed an annual budget of R6 billion for the 2024/ 25 financial year, but the business community in the province allege a huge chunk of that money will not go to improve municipal services.

Instead, they fear, it will go straight into the pockets of senior managers, directors and politicians through dubious tendering processes.

Polokwane budget passed

The council tabled the budget on Tuesday at the Jack Botes Hall in Polokwane.

The municipality has been rocked by water cuts almost every week due to illegal connections, burst water pipes, and poor workmanship, among many other problems.

This has irked many residents, resulting in community protests in and around the city.

The shortage of this basic human right has also raised questions as to whether or not the city will ever win its battle to turn Polokwane into a metro.

Polokwane is the economic and political hub of the province. The city’s population has grown steadily from 532 670 in 1996 as reported by Stats SA to 843 459 in 2022.

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During his State of the City address, Polokwane mayor Makoro John Mpe said his council had adopted a budget of R6 billion for the 2024/25 financial year, compared to the R5.3 billion in the previous financial year.

He said around R943 million of the 2024/25 financial year’s budget is earmarked for capital projects. 78% of this will be allocated to roads, water and sanitation, energy services and transportation services.

Mpe, who is also the ANC Peter Mokaba regional chair, said his council has allocated the total service delivery budget for capital projects for 2024/25 as follows:

• Water: R206.8 million,
• Roads and stormwater: R190.8 million,
• Electricity: R63.4 million,
• Sanitation:R150.2 million, and
• Refuse removal: R28.1 million.

Mpe said due to the global and domestic economic downturn, the municipality had to increase its tariffs on water, property rates and electricity. The increase is by a block percentage ranging from 6% to 9%, and 3% and 12.72%, respectively. All other services were increased by 6%.

“The rate of increase in electricity is in line with the National Energy Regulator of South Africa (Nersa) guidelines, which increased electricity tariffs by 12.72%. For water services, it is in line with the increase from the Lepelle Northern Water, which increased by 9%.”

The mayor said council would continue to assist poorer households.

“Our indigent support has increased from R272 million in the previous financial year to around R286 million in the current financial year.

“This subsidy includes a free 6Kl of water, 100kWh units of electricity, a 100% subsidy for refuse removal and sewerage charges.

“A 100% rebate on assessment rates will also be given to indigent households.

“In the past financial year, the municipality collected revenue amounting to R2.2 billion,” said the mayor.

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Mpe gave young graduates in Polokwane something to smile about.

He said for the 2024/2025 financial year, his council will take 100 interns on the municipality’s internship programme with a budget allocation of R6.5 million.

“Through LGSETA (the Local Government Sector Education and Training Authority), we are planning to create 50 learnerships to the tune of R2.6 million. We are also targeting 50 young people for exposure through the Work Integrated Learning programme.”

Concern about corruption

But some were not impressed with the mayor’s speech.

Provincial secretary for the Forum for the Limpopo Entrepreneurs (Fole), Siviko Mabunda, said the adoption of the budget was nothing but a “dubious scheme for the elites to amass wealth through corrupt means”.

“A huge chunk of that money is going straight into the pockets of managers, directors and senior politicians within the municipality. This is how they do it. They rope in foreign nationals and assist them in bidding for lucrative advertised tenders.

“They then award the tender to them and claim a huge cut of the payout and give them (foreigners) peanuts. Most of these guys in council are fronting and that is why they are filthy rich,” said Mabunda.

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He added: “As for the R200 million for water, they better spend it for what it is actually intended for. I am saying this because in the leafy suburb of Bendor and Serala View we spend weeks without any drop of water.”

Service delivery?

The Democratic Alliance (DA) was also critical of the budget speech.

“The mayor mentioned that 30 years ago we had residents in rural areas fetching water in wheelbarrows. We can confirm that 30 years after the dawn of democracy in South Africa we now have residents in Polokwane’s CBD fetching water in wheelbarrows.

“More and more residents in Polokwane are dependent on water tankers that are poorly monitored and controlled, leaving residents, including the elderly, to fend for themselves.

“While Mpe is trying to grow the city to get a metro status, it must be borne in mind that this development should stimulate the economy and improve lives. One wonders if Polokwane is anywhere near capable of supplying water to these developments,” said DA councillor in the municipality, Jacques Joubert.

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