The ANC majority of the already mismanaged Matjhabeng Municipality has pushed through a rate increase of 15% for water and electricity for the new fiscal year.
This draconic decision was enforced by a one-sided vote taken during the council sitting on Tuesday (30/05). This, even after input from the opposition parties that there are material flaws in the budget. Vista understands that it is, in effect, an unfunded budget.
Cllr Piet Botha, caucus chair of the DA and finance portfolio member, highlighted these flaws and proposed an alternate budget but the call was not heeded.
Botha pointed out that the budget was indeed unfunded as was confirmed in a letter dated 25 May from the head of department (HOD) of the Provincial Treasury, Masechaba Sesing.
“It was also pointed out that the proposed tariffs were well above the consumer price index (CPIX) and that the residents of Matjhabeng cannot afford it,” says Botha.
The ANC proposed the increases as follows:
¦ Electricity by 15.1 %;
¦ water 15 %;
¦ rates by 6 %, of which 2 % is to also subsidise the water tariff
¦ sewerage 10 %; and
¦ refuse removal 10 %.
Councillor Botha proposed the following rates instead:
¦ Electricity 6 %;
¦ water 6 %;
¦ rates 6 %;
¦ sewerage 6 %; and
¦ refuse removal 6 %, which are all below the CPIX.
It was also suggested that the steep increase in the water tariff should be abandoned as it was outdated and stems from about 2002 when Matjhabeng had a water shortage, and it was introduced to curb high water usage.
During the meeting the following reasons were given as to why the tariff should not be increased:
¦ Matjhabeng has the highest unemployment rate in the country;
¦ water leaks are not repaired timeously and leads to water losses of about 56 %;
¦ out of the estimated 120 000 households, a total of 26 250 houses are not metered and thus not billed. This has a major effect on the income stream of the municipality;
¦ mines and businesses are closing and no new job opportunities are created;
¦ the budget presented was not credible and realistic; and
¦ Matjhabeng does not have proper service delivery as water shedding occurs daily and most areas only have water for roughly six hours a day. Refuse removal is done intermittently and raw sewage flows down the streets.
“It was abundantly clear that the ANC, Isanco, African Democratic Change (ADeC) does not have the best interests of the residents at heart as they all voted for the approval of the budget. The EFF once again abstained,” says Botha.
