MyPE

Community Business Directory, Event Listings, News and Views from Gqeberha, Nelson Mandela Bay

Can you spend R1.2 billion in 45 Days?

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Dear MyPE

The ANC/EFF/UDM coalition of corruption has yet again proved that it is incapable of governing the Nelson Mandela Bay Metro, as it will not be able to spend its Capital Budget by the end of the 2018/19 financial year on 30 June 2019.

As of 15 May 2019, the ANC-led coalition of corruption had only spent 41,9% of its Capital Budget for the current financial year.

The latest available figures show that the municipality has spent just over than R892-million of its R2,1-billion Capital Budget, which means it has less than 45 days to spend more than R1,2 billion.

During the last administration the DA called for the support to the Municipality, in line with Section 154 of the Constitution of the Republic of South Africa.

I have now written to newly elected Premier, Oscar Mabuyane, requesting that the new administration urgently intervenes in Nelson Mandela Bay’s administration, by means of Section 154 support.

The Metro’s capital expenditure in the 2018/19 financial reads like a horror story:

  1. Budget and Treasury (5,24%)
  2. Chief Operating Officer (69,3%)
  3. Corporate Services (6,89%)
  4. Economic Development, Tourism and Agriculture (9,43%)
  5. Sports and Recreation (24,98%)
  6. Human Settlement (39,46%)
  7. Electricity and Energy (37,2%)
  8. Roads, Stormwater, Transportation and Fleet (44,58%)
  9. Water Services (45,5%)
  10. Sanitation Services (57,69%)
  11. Public Health (37,41%)
  12. Safety and Security (30,68%)
  13. Nelson Mandela Bay Stadium (10,69%)

A further cause for concern is that should the City fail to appoint a permanent Chief Financial Officer (CFO) before end of June, it is likely to forfeit all grant funding not yet committed.

The previous DA-led coalition government in Nelson Mandela Bay, through exceptional governance, raked in an additional R200 million for the Nelson Mandela Bay Municipality.

National Treasury recently confirmed that the City will receive this money due to the DA-led administration utilising 100% of its Urban Settlement Development Grant (USDG) in the 2017/18 financial year.

The DA-led government also spent 100% of its USDG funding in the 2016/17 financial year and was thereafter rewarded by National Treasury with R178 million additional funding.

It is now clear that the ruling ANC/EFF/UDM coalition of corruption will not be able to spend its Capital Budget and the latest additional R200 million received from National Treasury by the end of the financial year.

If the City does not utilise all of this additional funding by the end of June, it will be forfeited back to National Treasury.

The DA-led coalition government in Nelson Mandela Bay proved that where the DA governs, it governs well.

The DA is committed to fighting corruption, speeding up basic service delivery and building One South Africa for All.

Regards

Nqaba Bhanga
DA EC Provincial Leader

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This author is a 'catch-all' for occasional articles and letters written to MyPE. The Author of each article can be found in the signature at the bottom of each individual article.