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Proposed municipal rates and tariffs are immoral

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The residents of this metro are being taken for the ride of their lives!

They have the right to know why the proposed rates and tariff increases are unrealistically high and the answer lies in the fact that our honest ratepayers and citizens are being asked to fund the ongoing mismanagement of municipal financial and human resources.   With the exception of electricity, where the increase is 7% on average, the rise is to 13%, which is well above the official inflation rate of 5.6%.

The reasons for the high increase are simply because the ruling party is failing to effectively address the following major issues of concern:

  • All current Executive Directors are in “acting” positions and most have been vacant in excess of 9 months.
  • The Auditor General reported a water loss for the 2011/12 financial year of R127.2m.
  • Irregular, fruitless and wasteful expenditure amounted to R557.2m. Of this, R234m had its origins in the Supply Chain Management Office.
  • Electricity theft in this metro is currently estimated at R 288m per year.
  • Lawsuits against the municipality are estimated at R100m currently.
  • Overpayment of some senior officials is to the tune of R6m per year.
  • Excessive pay packages for political advisers to the Mayor and his deputy are to the tune of R1 263.17m and R1 186.07m, respectively.  Both these advisers earn more than their political principals.
  • The lack of productivity in the Traffic Department, with both law enforcement and licensing services leave a lot to be desired.
  • Overdue consumer debts increased by R288.7m from 1 July 2012 to 28 February 2013 and now stand at a staggering R1,54 billion. The current collection rate is 92.3% and the two most senior debt collectors at the municipality are being prevented from performing their duties due to a dispute that management is unable to resolve.

National Treasury is encouraging all municipalities to carefully consider affordability of tariff increases, especially as related to domestic consumers. They also demand, in the budget documentation, all the reasons for increases in excess of 6% and all stakeholders should do likewise.

The Democratic Alliance has, on an ongoing basis, highlighted spending on non-priorities such as excessive overtime, costs associated with longstanding staff suspensions, unnecessary travel, excessive catering, the use of consultants to perform routine tasks, sponsorship of sporting events and donations to cover funeral costs for those who were politically connected. National Treasury are now also calling for all these non priority items to be eliminated. They have highlighted the fact that some municipalities budget as much as R600 00,00 per annum to participate in the South African Municipal Sports and Recreation Association events. This metro spent a whopping R830 269,44 to send a delegation of officials and councillors to participate in the 2012 event.

The municipality has commenced a public participation programme on the proposed rates and tariff increases, so that all concerned stakeholders of this metro have an opportunity to raise their concerns and demand that major issues be rectified. These meetings will be held at various locations across the metro from 6 to 16 May 2013 and it should be noted that all objections must be submitted by 19 May 2013.

We cannot continue to fund the ongoing mismanagement of the Nelson Mandela Municipality. Council has a responsibility to ensure that the use of municipal resources are used in the best interests of the local community. It should be emphasized that this duty is extended to individual councillors through the Code of Conduct signed by all.

Service delivery in this metro will remain at an all-time-low until we employ competent senior directors and show the political will to eradicate fraud and corruption, mismanagement, irregular, unauthorized, fruitless and wasteful expenditure. That is the bottom line.

Leon de Villiers

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Port Elizabethan

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.