Illegal Maluti-a-Phofung budget proof that ANC does not care

Issued by Leona Kleynhans MPL – DA Member of the Free State Legislature
18 Jun 2021 in Press Statements

Note to Editors: Please find the attached soundbites in English and Afrikaans by Leona Kleynhans MPL, DA Member of the Free State Legislature. Please also click here to view the letter to Tito Mboweni MP.

The Democratic Alliance (DA) has noted with great concern the new illegal budget adopted in the Maluti-a-Phofung municipality. This budget is confirmation that the municipality, which services areas such Harrismith, Kestell, Namahadi, Phuthaditjhaba and Monontsha amongst others, is alive in name only. The municipality is unable to deliver any kind of services and while the wage bill continues to increase the Speaker earns a R10 million salary.

The new budget proposes an income of R1.8 billion, and expenditure of R2.5 billion. The deficit of R703 million is totally understated because, using the current collection rate, the deficit will top R1,2 billion. Furthermore, no billing is taking place because the printing contract has expired. There is no Indigent Register as required by law. Neither the total debtors, the Eskom debt, a cash flow projection, a report on revenue collection in previous years, or liabilities for litigations are included in the budget and the impending Eskom agreement which will have massive implications for the budget is not even made mention of.

Due to the fact that this budget is grossly unfunded, and does not comply with section 17 of the Municipal Finance Management Act, or section 215(3) of the Constitution, the DA rejected the budget in council. The only party to do so.

The new tariffs in the budget also reflect a R3.9% average increase, while the electricity tariff increase is 14.59% as determined by Nersa, which will be implemented on 1 July this year.

The complete incompetence and mismanagement of the Maluti-a-Phofung municipality is reflected in the budget, which unfortunately translates into the massive service delivery failures experienced by residents.

The community have every right to be angry and frustrated, but the protests and anarchy currently experienced in the area will change nothing. In fact, it is clear that the current violent unrest has very little to do with service delivery and everything to do with desperate residents being misled by the so-called ‘demands’ from failed political leaders and opportunists intent on making the municipality ungovernable.

The DA have also laid criminal charges against these ‘revolutionaries’ who are holding the community of Harrismith hostage.

The DA has also written to the Minister of Finance, Tito Mboweni, to alert him to the huge discrepancies in the budget. National Treasury can, and have in the past, stopped payments and withheld funding to the municipality until the budget is rectified.