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Mantsopa's Draft Budget: neglecting service delivery and financial stability


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Mantsopa's Draft Budget: neglecting service delivery and financial stability

Mantsopa's Draft Budget: neglecting service delivery and financial stability

22nd May 2023

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The Democratic Alliance (DA) has highlighted significant shortcomings in the Mantsopa Local Municipality's draft budget which poses a huge risk to financial stability and service delivery in the region.

It is evident that the draft budget fails to adequately address the deteriorating state of infrastructure and the persistent lack of service delivery. Insufficient funding has been allocated to crucial repairs and maintenance projects that are essential for improving service delivery to the community.

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The budget's revenue projection is particularly concerning, which relies on an optimistic 70% collection rate. However, in reality, the current collection rate falls well below 50%, far below the national norm of 95%. As a result, the municipality's employee-related costs have become unacceptably high. To address this issue, we urge the municipality to review its organisational structure, streamline its workforce, and cultivate a more productive environment. There is an urgent need to address the presence of unproductive employees within the MLM.

Enhancing the collection rate requires proactive measures such as ensuring accurate and timely billing and implementing the long-awaited deployment of prepaid water meters, which are already in possession of the municipality in Ladybrand. Furthermore, strict enforcement of the debt collection policy is essential.

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Another area of concern is the lack of oversight over income-generating assets owned by the municipality. Lease agreements for farmlands have not been audited for years, allowing individuals to occupy the land without paying rent to the municipality. This negligence has resulted in the loss of potential revenue. Additionally, the draft budget does not account for any income from licenses and fines, despite the operational traffic department that incurs costs for the municipality. Failing to enforce business licenses has also contributed to a loss of income.

These pressing issues can be rectified if the municipality takes responsibility and holds employees accountable. By addressing the shortcomings in the draft budget, the municipality can fulfil its mandate of providing effective service delivery to the communities it serves. The well-being and progress of the community depend on it.

Together, let us work towards a Mantsopa Local Municipality that prioritises service delivery and ensures financial stability for the betterment of all residents.

 

Issued by Dewald Hattingh - DA Councillor Mantsopa Local Municipality

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