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We reject NMB’s unfunded adjustment budget

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Dear Editor

The Democratic Alliance (DA) has rejected Nelson Mandela Bay Municipality’s adjustment budget, that was approved in Council yesterday.

Despite the ANC-led coalition government’s attempt to present the budget as ‘breaking even,’ the budget is unfunded.

Furthermore, the government is writing off a staggering R16 billion in historical debt, with R2.2 billion of this amount that accumulated within the first six months of the current financial year.*

* CORRECTION – Not a R16 Billion write off: After chatting to Councilor Werner Senekal the figure of R16 Billion is NOT the write off figure but refers to the cities total debt owing by citizens. The amount of R2.2 Billion is the amount that is estimated that will be written off and the current thinking is that that debt write off will be determined by identifying all homes valued at less than R500 000 that will have their debt written off.

The adjustment budget is unrealistic, given the anticipated 5% drop in collection rates from 80.57% to 75%. This reduction is expected to result in an additional debt impairment of approximately R729 million, severely impacting service delivery in the Metro.

Furthermore, the budget reveals a decline of R998 million in surplus funding, exacerbating the financial challenges. Alarmingly, the budget prioritises the purchase of luxury vehicles for the Executive Mayor (R1 million) and Chief Whip (R800 000), while implementing budget cuts on critical infrastructural projects in the city.

The DA will not desert the people of the Metro and will keep advocating for good, clean governance.

The DA is in your corner, fighting for you. Together we can get Nelson Mandela Bay working again.

Regards

Cllr Rano Kayser
DA NMB Caucus Leader

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