Durban Chamber comments on City’s financial position
The Durban Chamber encourages the municipality to continue to enact its pre-defined austerity measures in a bid to contain costs.
FOLLOWING reports that eThekwini Municipality only has available funds for the next 27 days, Durban Chamber of Commerce and Industry’s CEO, Palesa Phili, has urged businesses to pay their dues for services rendered by the municipality.
Commenting on the City’s financial position, Phili said as organised business, the Chamber has noted the City’s low cash reserves, and is aware the Covid-19 pandemic has translated to huge losses for most businesses as well as public entities.
“This has impacted negatively on rates collections. We encourage businesses to please pay their dues for services rendered by eThekwini Municipality. Businesses that are facing financial hardships are encouraged to take up the City’s payment arrangement plans and stay consistent with the payment of bills,” she said.
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Phili said the Chamber believes the City leadership needs to work closely with the business community to develop sustainable solutions to improve the City’s collection of rates.
“The Durban Chamber encourages the municipality to continue to enact its pre-defined austerity measures in a bid to contain costs. We are appealing to the municipality and elected representatives to exercise fiscal discipline and ensure resources are prioritised effectively,” she said.
The municipality has stated it has suffered severe financial loss due to the decline in revenue collection after offering relief to ratepayers.
According to a recent budget statement, the City’s cash on hand to render basic services has declined over the past months and could only have enough to last for a month excluding cash on reserves.
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