Matjhabeng has approved an unfunded budget for 2022-’23.
This contentious budget was discussed at a council meeting on Tuesday evening (31/05). Councillors Piet Botha and Maxie Badenhorst reiterated that the budget was unfunded and that the anticipated pay rate of 75% used by the finance department to calculate the revenue budget would never materialise.
Historically the collection rate was on average about 54%, which leaves a shortfall of 21% on the budgeted figure.
The DA also had a problem with the suggested tariff hikes on water at 11,75%, electricity 7,47%, rates 4%, sewerage 8% and refuse removal of 8%, and argued that tariffs should not be increased, as the residents are not getting sustainable service delivery. Matjhabeng also has the highest unemployment rate in the Free State, and with the mines closing down leading to lost job opportunities people cannot afford to pay for poor service delivery.
Included in the budget is a shortfall between water purchases and sales of about R336 million. This is as a direct result of water leaks and unallocated water usage. Most of the historic township users are not metered.
Badenhorst also pleaded with the council to have section 139 (5) of the Constitution invoked so that the National Treasury can take charge of the dire finances of the municipality. This was also shot down by the ANC and the mayor said the municipality did not need help from treasury.
This was done as Matjhabeng has been identified by Treasury as one of the 43 worst municipalities because of the outstanding debt to Eskom and Sedibeng Water, where an amount of almost R10 billion is owed.
The Section 139 Invocation is a national Treasury intervention, and this will assist with the curbing of corruption and the ensuring of basic service delivery.
During a meeting on Monday with the business fraternity, they unequivocally said that a tax revolt was on the cards if the budget is approved.
An informed source told Vista that the community of Matjhabeng deserves more than raw sewage running down the streets and water losses of more than 60%.
The ANC would not heed all the suggestions and warnings by organised business and used their majority to outvote the opposition parties 37 to 21.
This means that the budget for 2022-’23 is approved and will be implemented from 1 July 2022 to 30 June 2023.
“Due to only R305 million being allocated towards repairs and maintenance, the public should not hold their breath for improved service delivery,” the source said.
“A lack of maintenance will lead to a total collapse of water, sewage and electricity services in Matjhabeng. The network is older than 60 years. A total collapse can be as close as 36 months from today.”
The network is older than 60 years. A total collapse can be as close as 36 months from today.
