In a turbulent night reminiscent of the preceding level four weather warning, KwaDukuza Municipality (KDM) faced a storm of public scrutiny during its Mayoral Imbizo at Umhlali Prep last Thursday.
The assembly brought together residents and ratepayers from wards 6, 22 and 30 who did not hold back, articulating their frustrations on various pivotal issues.
A key concern raised was the notable absence of the municipality’s anti-fraud and corruption unit, which had also missed a prior presentation at the imbizo held at the iLembe Chamber of Commerce earlier in the week.
Mayor Lindile Nhaca attributed this to the unit’s head being away on council business.
Acting municipal chief financial officer, Mthandeni Nene, started off proceedings with a presentation that attendees found confusing.
Nene said it appeared as though the municipality’s collection rate was positive in all respects, reporting it to be at 95%.
“This implies that processes and controls implemented are effective. Furthermore, the municipality can meet its long- and short-term commitments and settle our creditors,” said Nene.
But Dolphin Coast Residents and Ratepayers Association (Docrra) vice chairman, Deon Viljoen, challenged Nene’s assertion of financial stability.
“On the one hand you provide us with good news, but then employ scare tactics,” Viljoen said, referring to Nene’s later statement that the municipality only had “enough financial coverage for a month”.
Viljoen also queried the revenue collection rate.
“You talk about a collection rate of 95%. I would like to point out that this is based on actual invoices sent. What’s missing from that figure is approximately R25-million per month of electricity losses. This amounts to R300-million per year. Rates and taxes are your single biggest source of revenue, so it seems this is bridging the gap caused by the shortfall in electricity collection.”
Viljoen claimed the actual collection rate was only 80%.
He also mentioned that in terms of rates and taxes collected, one year saw close to a 100% collection rate, with the following year exceeding 100%.
“The reason the municipality collected more than 100% in some instances is because of the 4-6% income from new developments. If we incorporate that into the budget, we could reduce our rates by 5-6% and still maintain the same revenue,” said Viljoen.
Regarding the Dukuza substation, it was also revealed that Docrra’s Promotion of Access to Information Applications (PAIA) submitted in February, received no response.
Viljoen expressed concern about the imbizo being informed that the project’s value was R250-million.
“I attended a council meeting where electrical department director Sibusiso Jali applied for a further R120-million,” said Viljoen.
This was for specific equipment not covered by the grant allocated for the substation.
Municipal manager Nhlanhla Mdakane responded to the PAIA applications query, saying the matter had been referred to Eskom but no information had been received to date.
On security matters, the imbizo was informed that security upgrades at substations worth R5.4-million for wards 30 and 22 have been completed, although switchgear and transformer refurbishment efforts were still in progress.
Mark Whitehead of the KwaDukuza Residents Forum inquired about the delay in tarring Lorna Avenue in Ballito, which had been discussed seven months earlier at a budget meeting.
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