WITH a legacy of underspending for the past two financial years, the City of uMhlathuze is on track to meet its capital expenditure target by the end of the financial year.
This is the optimistic forecast from Chief Financial Officer, Mxolisi Kunene, adding that almost 66% of the Municipal Infrastructure Grant (MIG) funding had already been spent.
According to the mid-year budget review as at 31 December, capital expenditure stood at R173-million (45.16%) based on the revised adopted capital budget of R383-million.
In addition, R108-million had been placed for orders with payment only due to take place in the coming months.
Kunene told the Zululand Observer that the accelerated spending could be attributed to team work and in particular the projects spearheaded by the Department of Infrastructure and Technical Services.
Municipal Manager Dr NJ Sibeko said ‘underspending was certainly a thing of the past’.
‘We are very pleased and confident that our target will be met by the end of the financial year. While we battled with underspending during the past two years, this year’s capital spending is going very well,’ said Sibeko.
While Councillors lauded the administration for the increased pace of spending, concern was also raised about the number of debtors sitting in the over 90 day’s category, totalling more than R89-million.
More than R5-million was money owed by government, R35-million constituted business debt and R39-million – household debt.
Councillors were told that government debt would not be written off and that no interest had been charged to state debtors.
