Ugu District Municipality’s finances ‘improve’
Illegal water connections are a huge threat to Ugu's financial stability.
UGU’S financial situation is definitely improving, Mayor Ntombifikile Gumede was proud to announce at the state of the district address at Port Shepstone Civic Centre on Tuesday evening.
The event was attended by delegates from all six local municipalities under the Ugu district and some members of the community. It was a formal occasion and guests were treated to fine fare and entertainment.
“I can say to you today that the municipality has put measures in place which have improved Ugu’s financial situation,” said the mayor.
The municipality had improved its audit opinion from a ‘disclaimer’ in the 2012/13 financial year to a ‘qualified audit‘ opinion in the 2013/14 year. She added that the municipality currently had a healthy cash coverage and was able to meet its monthly fixed operating commitments from cash generated income.
“Our grants and budget are cash-backed, indicating that the municipality is in a healthy financial position to sustain itself and deliver on service delivery objectives for the next financial year.”
She did, however, admit that debt collection remained a challenge and was currently running at 87 percent.
“Council has adopted revenue enhancement and debt reduction strategies to reduce dependency on grants,” she said.
She said another notable threat to the municipality’s financial position was illegal water connections which were rife. “Council has granted amnesty on illegal connections where we call upon those people to come in and play the game,” she said.
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