The ANC in the JB Marks Local Municipality forced through the 2021/2022 budget with a steep increase of rates and taxes, whilst ignoring any calls to account for the previous years’ unauthorized, fruitless and wasteful expenditure that spans into billions.
This approval took place during an acrimonious debate where the ANC shouted down and even used foul language against councillors from opposition parties.
The R2.1 billion budget with a deficit of nearly R160 million will not bring significant improvement to the infrastructure and service delivery.
JB Marks consumers will be confronted by a general 6% increase to the rates and taxes, excluding electricity tariffs which will be increased by 14.59%.
The municipality’s decision to once again increase its electricity tariff to 14,59% has made JB Marks Municipality be one of the most expensive municipalities in South Africa. The exorbitant electricity tariffs contribute to the municipality being economically non-competitive resulting in the lack of new investments to the town and an increase in job losses.
The ANC is oblivious to the desperate need to upgrade and maintain the municipality’s infrastructure and decreased the capital budget by 35,43% to R213 million while simultaneously increasing the operational budget by R89,161 million.
The city is already struggling with basic maintenance service delivery issues and will therefore have to pay more for less.
The budget further does not address key issues highlighted by the Auditor-General in his latest report, which are:
1. the 74% increase in electricity distribution losses which stood at R73 124 300 on 30th June 2020. Main contributors to this loss include meter tampering and illegal connections.
2. Water losses contributed another R1,771million to losses incurred by the municipality.
3. The serious impairment of receivables and consumer debtors of R980 795 818, representing 78% of the total receivables of the Council.
In addition, there is no indication in the budget or the budget speech of the Executive Mayor that the annual repeated findings of the Auditor-General will be addressed and that the JB Marks Municipality will stop its serious contraventions of the Municipal Financial Management Act by taking reasonable steps to prevent and investigate the following:
• the unauthorized expenditure of 2020 which amounted to a total 2020 of R840 710 494;
• the irregular expenditure of 2020 which amounted to a total of R2 518 186 162 and
• the Fruitless and Wasteful expenditure (2020 Total R78 266 834).
The Executive Mayor’s silence on financial accountability can be regarded as a green light for the looting spree, which already saw the arrest of the former Executive Mayor, Cllr Kgotso Khumalo, and two officials as well as the suspension of the Municipal Manager and Chief Financial Officer, with others to follow.
The DA will continue to fulfil its obligation to the community to instil financial responsibility and accountability into the JB Marks Municipality and will continue to report incidents of theft, fraud and corruption to investigative authorities as and when evidence becomes available.