HIGHVELD – Ms Thandi Ngxonono, executive mayor of Govan Mbeki Municipality, tabled the annual budget and Integrated Development Plan (IDP) for the 2020/2021 financial year through a virtual council meeting on Thursday, 28 May.
The budget comprises an operating revenue of R2,4-billion, an operating expenditure of R2,4-billion and capital budget of R451-million.
Residents can expect increases on tariffs as follow:
• Refuse increases by 4.9 per cent
• Water increases by 6.6 per cent
• Sewerage increases by 6.6 per cent
• Electricity increases by 6.24 per cent
• Deposits increases by 6.6 per cent
• miscellaneous tariffs by 4.9 per cent
Ms Ngxonono said she is presenting this budget faced with serious challenges in the finances of the municipality which to a greater extent has been as a result of the culture of non-payment by consumers.
“We are facing this challenge of revenue generation mainly because a huge number of the residents, including businesses, in the Govan Mbeki Municipality are not paying for the services that the municipality is rendering to them.
“It is more dismaying that there are big companies that are not paying for the services, yet they run their businesses in our shores and in the process makes huge profits.
“We have subsequently established Operation Ruthula in order to implement a radical revenue generating plan which is currently yielding desired results albeit not as quickly as we pray it should.
“We are therefore calling on our people to join hands with us and begin to take the issue of paying for their services very seriously.
“We are implementing very drastic and radical measures against defaulters and those who steal electricity.
“We are currently in the process of naming and shaming all businesses that owe the municipality millions in unpaid bills.
“In the same vein, I want to inform this council meeting that we are doing everything practically possible to deal with the Eskom account.
“Progressive engagements are continually taking place with Eskom in order to arrive at a workable solution for this particular challenge.
“It is imperative that I should make a clarion call to all our people in this municipality to join hands with us and pay their outstanding accounts to the municipality.”
The Democratic Alliance has rejected the implementation of increasing tariffs.
The party proposed to both the Govan Mbeki and the Gert Sibande District councils that CoGTA, Eskom, NERSA and Rand Water are approached for the possibility to waive tariff increases for the first six months of the financial year until such time that the adjustment budget is considered due to the state of disaster.
The DA said that many residents in the municipality will not to be able generate an income and afford additional charges on their municipal accounts.
Ms Ciska Jordaan, DA caucus leader, said the argument of the ANC is that the municipality has no control over tariff increases and that the non-implementation thereof would spiral the municipality into financial ruin, not considering that an increase in tariffs might result in an increase of non-payment of accounts.
Also read: Bethal still go through dark days
“This is especially so if residents are not receiving the services they pay for.
“Bethal and eMzinoni have been without electricity for months while Embalenhle has also been suffering under forced load shedding for close to two years.
“Refuse removal continues to be inconsistent while illegal dumping has become the order of the day in some of our towns.
“The streets are ridden with raw sewerage in many areas, water distribution is dependent on reactive repair to infrastructure rather than proactive maintenance and the escalating debts towards Eskom and Rand Water make it impossible for residents to have confidence in a consistent supply of water and electricity.”
The DA said if there was truly a willingness to implement the myriad of turnaround strategies that had been compiled, the by-laws and policies that are guiding generation of revenue and the Financial Recovery Plan that was adopted by the council a year ago and to address water and electricity losses the municipality would not have any excuse not to compensate by other means for the financial loss that non-implementation of tariff increases would apparently result in.
“It is in fact perceived as insulting that besides several progressive inputs that were submitted by the DA to compensate for a possible financial blow, the powers that are designated to the Executive Mayor and the council during the state of disaster makes it legislatively very possible to provide relief to residents in this form, yet the ANC-led council has opted nonetheless to compensate for mismanagement and recover its financial ineptitude from the pockets of residents.
“We are satisfied that a commitment was made to draft policies regarding financial relief to residents and businesses who have been financially affected by Covid-19 and the lockdown, following a proposal that was submitted by the DA to the finance portfolio committee and positively responded to by the CFO, Mr B Sithole, and will continue to motivate for the implementation of this proposal.
“We also urged for the R10-million that has been set aside by the Govan Mbeki Municipality and R2-million by the Gert Sibande District Municipality in their budgets to address the electricity problem in Bethal/Emzinoni, as well as the delivery of the 20 MVA transformer from Eskom that is to be allocated to eMbalenhle to be finalised as a critical matter of urgency.”
Also read: Bethal and eMzinoni residents take legal action against Govan Mbeki Municipality
