#ReportBack: iLembe Municipality grapples with high losses
Debts reach R908 million, posing significant challenges to fiscal sustainability.
Although the iLembe District Municipality has received an unqualified report by the Auditor General for 2022/23, there remain areas of concern.
Water losses still remain high at R105-million, or 46%, which is higher than the national norm of around 40%.
Council has to do more in maintaining infrastructure, repairing water leaks timeously and dealing with illegal connections.
Provision of 4% on maintenance of property, plant and equipment against the norm of 8% is inadequate to upkeep the health of our infrastructure.
Irregular expenditure incurred is at R169-million, R6-million more than the previous year.
With due diligence it should decrease every year. This is a direct result of not following municipal procedures in securing goods and services.
It is shocking to note that doubtful debts is at R908-million, R171-million more than the previous financial year.
The current collection rate is 45% of average billing and if this trend continues the municipality will collapse.
An already high unemployment rate of 40% could get even worse.
The credit control department has to streamline it’s collection efforts while the poor are taken care of through the indigent policy.
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