The Democratic Alliance (DA) in Ekurhuleni is horrified with the poor financial planning process that was used to put together the Integrated Rapid Transport Network (IRTN) and Bus Rapid Transport Project (BRT) for the Ekurhuleni Metro.
Clr Bill Rundle, the DA Shadow MMC for Roads and Transport, says in terms of socio-economic development for the region, the project is very important as it will provide safe, affordable and manageable public transport to the community and is an initiative worthy of support by everyone.
“What is not supported is the end result of the haphazard financial planning by the metro through its residents, who will have to make good on operating cost shortfalls, which could be anything between R 150-million to R190-m per annum for the next twelve years,” says Rundle.
It is for this reason the DA Caucus in Ekurhuleni opposed the approval of the IRPTN and BRT Business Plan presented to council on April 30.
The item was, however, approved on a majority vote support by the ANC-led caucus.
Supported by three minority parties, the DA called for a roll call, which required each and every member of the council in sitting to cast their vote for or against the approval of the business plan.
This means that, should there be any legal actions against the metro resulting from the approval of the business plan, the opposing votes will be exempt from any legal action.
Members who supported the item may be held liable or sued in their personal capacities in the event of legal action.
“The business, revenue, jobs and taxes generated from this sector, a multi-billion rand industry of the economy, appears to be heading down hill very fast,” says Rundle.
“There are no clear sources, time frames, undertakings and avenues that have been identified by the metro to support this project financially.”
Springs ward councillor Dean Stone says the DA is concerned with the financial strain this particular proposal will put on the already overburdened ratepayers of Ekurhuleni Metro.
“I need to make it quite clear that the DA in Ekurhuleni is not against the metro rapid transport system,” he states, “but that we are concerned for the ratepayers.”
He says the social economics benefits of the system is certainly valuable to the metro, however, the way they are planning on funding this initiative is mind blowing.
“The metro wants to recoup these funds directly from the ratepayers, meaning there will be an overall interest of one and a half per cent on average on our property rates yearly, this is over and above the normal yearly increases on property rates.
“We voted against this item in council as we feel there are other ways to finance this transport system without putting such a heavy burden on our already over-taxed Ekhurhuleni residents.
“Let’s start by collecting the billions of outstanding revenue owed to this metro by dishonest ratepayers and government departments.”
