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MEDIA STATEMENT

FOR IMMEDIATE RELEASE

30 MARCH 2023

MAKANA LOCAL MUNICIPALITY ADOPTS THE DRAFT ANNUAL BUDGET AND IDP FOR 2023/24 FINANCIAL YEAR

The Executive Mayor tabled the 2023/24 draft annual budget and IDP which was approved by Council based on the projected income and revenue within the Medium-Term Revenue and Expenditure Framework (MTREF) during a Special Council Meeting held on 30 March 2023. The draft budget was vigorously discussed and supported by all Councillors as it strongly leaned towards improving maintenance and repairs to address the municipality’s dilapidated infrastructure.

The draft annual budget projects a total operating expenditure for the 2023/24 financial year to the value of R673 million (2023/24) and R708 million (2024/25) and R761 million (2025/26) for the two outer years respectively. The expenditure framework is informed by the following:

• Improvement in the quality-of-service delivery across the board.
• Repairs and maintenance expenditure is still limited due to financial difficulties, however, amounts of R14, 6 million, R13, 7 million and R14, 2 million for the MTREF have been set aside for materials in respect of repairs and maintenance and additional amounts of R18, 4 million, R15, 8 million and R15, 6 for the MTREF has been budgeted for the replacement of our ageing fleet as well as for upgrading existing assets.
• The continued provision of basic services remains a high priority as well as the financial sustainability of services.

The repayment of long outstanding debts continues to weaken the financial capacity of the institution, especially the Eskom and Department of Water and Sanitation Bulk Accounts. Service delivery has previously been neglected due to the financial burden of payment plans which are in place for these accounts.

The capital budget for the MTREF amounts to R67, 4 million, R73, 7 million and R48, 6 million respectively. A major portion of the capital budget is mainly funded from government grants and subsidies as the municipality has limited financial resources to commit large amounts of its own funds to capital financing. Capital grants contributes 73% to the coming year’s budget.

Council also discussed and resolved on several important issues, which have a significant impact on the lives of the residents of the municipality.

A robust discussion regarding the municipality’s water situation, which came into sharp focus, because of the recent flooding of the James Kleynhans Water Treatment Works. A report was submitted to Council to explain what led to the plant shutting down. During the discussions councillors called for an investigation into the circumstances leading to the flooding, in order to clearly understand what happened. The Municipal Manager assured the meeting that action is being taken regarding the matter.

Incidents of individual councillors and/or members of the public visiting Water Treatment Plants were also the subject of heated discussion during the meeting. These unauthorised visits, according to Council, pose serious safety threats to members of the public and to councillors who are conducting unauthorised oversight visits. Addressing these issues, the Municipal Manager indicated that no community member or councillor is allowed to visit unaccompanied at strategic points, such as Substations, Water and Waste Water Treatment Works, without prior authorisation. The Municipal Manager told the meeting that oversight visits should be led by the Municipal Public Accounts Committee (MPAC) or be sanctioned by the Executive Mayor. The Speaker reiterated the Municipal Manager’s sentiments stating that there was nothing wrong with councillors conducting oversight, adding that, this should, however, be done in accordance with the proper protocols.

The Executive Mayor voiced concern over growing contestation from “retired experts” whenever water-related reports are issued by the municipality. The Executive Mayor called on experts or members of the public who want to volunteer their expertise on water-related matters to approach the Office of the Municipal Manager.

The Council also approved the advertisement of the position of the Director: Public Safety and Community Services. This comes because of the expiry of the employment contract of the incumbent director at the end of June 2023. The Council also approved the appointment of a panel chaired by the Municipal Manager to conduct the shortlisting, interviews, and report to council once the process is concluded. Other members of the panel must include the relevant Portfolio Committee Chairperson and an external local government expert.

Enquiries: Mr Anele Mjekula 083 768 0515 or amjekula@makana.gov.za

Issued by the Makana Communications Office.