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Daily Maverick
4 days ago
- Business
- Daily Maverick
Nelson Mandela Bay seesaws on rates as council battles to pass 2025/26 budget
The Nelson Mandela Bay Council will, again, try to pass the budget on Wednesday and while smaller increases in tariffs for water and sanitation were promised by mayor Babalwa Lobishe last Thursday, it wasn't included in the draft budget. However, by 5pm on Tuesday, a circular indicating that there were conditions to the reduced water and sanitation rates arrived with councillors. The Nelson Mandela Bay metro's council will again try on Wednesday to approve the budget for the 2025/26 financial year. Last Thursday, during the council meeting, Mayor Babalwa Lobishe promised a 0.5% reduction in the proposed increases for water and sewage. But in the draft budget received by councillors on Tuesday, it looked like the increase was again set at 5.5% and not at the promised 5%. But last Thursday night, a circular was signed by Nosipho Xhego, the executive director of corporate services in the metro, stating that the proposed reduced increase can only be put into operation if councillors agreed to scrap the city's scarce skills allowance and also agree to an overtime policy based on regulated thresholds. The circular states that the municipality currently does not have an overtime policy, and also pays more than the regulated thresholds, and implementing these could save R22-million in the current financial year. Other increases remain unchanged, including an increase in property rates by 5%. The proposed increase in electricity prices stands at 12.8%, which is 0.6% higher than the Eskom price. The electricity department is running at a loss of more than a billion and is spending more money on buying electricity than what it makes selling it – because of theft and meter tampering. Allowing this increase, however, is not a decision that can be taken by council though, as it falls within the mandate of the National Energy Regulator. In 2022, the Nelson Mandela Bay Business Chamber successfully applied for an order from the Eastern Cape Division of the High Court in Gqeberha, indicating that Nersa must link price increases to a cost of supply and also was not allowed to pass on municipal inefficiencies to the consumer. Werner Senekal from the Democratic Alliance, the official opposition in the metro, said the budget's projections were off and it was based on a 76% collection rate while the average collection rate is 72%. He added that the Integrated Development Plan, setting out ward-based priorities and the budget, also was not in lockstep. By law, the budget must be passed by 1 July, otherwise the metro's council can be dissolved. In the latest circular sent on Tuesday afternoon, officials admitted that there must be better planning and also mechanisms in place to include ward councillors in decision-making around ward budgets. The money allocated to ward budgets in the revised budget, in comparison to last week, has increased by just over R44-million and, in comparison to the first draft budget in April, has increased by R452-million. Ward 1 and 2 in the metro, both in need of critical electrical infrastructure work, both received R4.8-million and R2-million more in their capital budgets. Ward 16, which includes a large section of the metro's manufacturing industry, received a R14-million boost in the new budget.
The Citizen
12-06-2025
- Business
- The Citizen
MLM expands CCTV, upgrades infrastructure in new budget rollout
Midvaal Local Municipality (MLM) is among the few municipalities in Gauteng to adopt a fully funded budget. This is after the unanimous decision to approve the 2025/2026 Medium Term Revenue and Expenditure Framework (MTREF) and Integrated Development Plan. This means that MLM has enough capital to cover all planned expenditures, including operational and capital costs. According to MLM, the Draft Integrated Development Plan and MTREF came after months of consultations with various communities and stakeholders across the municipality. The Gauteng budget 2.0 for the 2025/26 financial year is R172.3b, an increase of some R886.6m from the budget tabled earlier this year. As Gauteng MEC for Finance and Economic Development, Lebogang Maile, tabled the Gauteng budget 2.0 for the 2025/26 financial year recently, he raised a serious concern that only four municipalities in Gauteng have tabled funded budgets while the rest remain unfunded. According to the municipality, the R2b 2025/2026 MTREF was drafted with careful consideration of the challenging economic climate facing the people of Midvaal, as well as the wider challenges faced by South Africa. This, MLM believes, showcases a government that prioritises the well-being and interests of its residents. The revenue budgeted for the year is R2.126b, an increase of 9.79% over the current year's budgeted revenue. Key service delivery projects included in this budget is R69m to replace old asbestos pipes using the Water Services Infrastructure Grant (WSIG). Phase 3 of the electrification of Sicelo in Ext 5 (Silahliwe) continues. In previous budgets, MLM allocated funding for Phases 1 and 2 in Kuvukiland and Stand 118. A total of R26m will be geared towards the construction of a substation in Savanna City, which will increase electricity capacity to support future housing developments. 'A total of R27m has been set aside in the 2024/25 budget from loan finance for road rehabilitation and the conversion of gravel roads to tar. A further R22m is allocated in the 2025/26 financial year to continue with rehabilitation and gravel-to-tar upgrades.' Furthermore, the MLM said it will give rebates of 25% and 50% on property rates. 'The threshold for qualification has been extended to five times the value of the SASSA Old Age Pension Grant, which equates to approximately R11 000.' MLM reveals that it has procured two high-speed vehicles for crime prevention purposes. 'We have made provision for the employment of law enforcement officers who will drive these high-speed vehicles, working alongside our CCTV cameras and other safety mechanisms to curb criminal activities in our municipality. The rollout of CCTV cameras in the Western and Northern regions has commenced, while a significant portion of the budget is being used to maintain existing cameras.' At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
Daily Maverick
11-06-2025
- Business
- Daily Maverick
Paying more, getting nothing — the Nelson Mandela Bay ward whose capital budget was slashed to zero
'I have been a ward councillor for 25 years and this has never happened to me,' said DA caucus chief whip Gustav Rautenbach. The capital budget for Lorraine and its surrounding suburbs — which makes up Ward 8 — has been slashed from R1.2-million to zero in the draft budget scheduled for discussion and a vote on Thursday. It is one of four DA-led wards in the metro that have been allocated no capital budget — and there is no mechanism for residents to appeal against the decision. The DA caucus chief whip, Gustav Rautenbach, said on Tuesday that there were rumours that the ward might still receive about R500,000 — but this had not been confirmed. Ratepayers are facing increases of 5% for property rates, 5.50% for water, 5.50% for sanitation and 6% for refuse collection, as well as a 12.8% increase in electricity prices if it is approved by the National Energy Regulator of SA. Last year, Ward 8 used its capital allocation to tar and repair part of Circular Drive, a major arterial road. But for the next year, Rautenbach said, there would be no capital allocation. 'It is very problematic,' he said, 'because this means that the Integrated Development Plan and the budget are not talking to each other. 'I think it is important to note that this doesn't mean that no potholes will be filled or no sewage spills will be fixed,' he said. 'That would come from the operational budget.' However, it does mean that no big new projects will be scheduled for the ward in 2025. 'We contribute millions to the municipal treasury,' said Rautenbach. 'Parts of this ward are old and must be replaced. How is that fair?' Lorraine has 122 townhouse complexes with around 3,000 houses, in addition to freestanding homes. 'I would say there are about 21,000 residents who live here,' said Rautenbach. Two of the main roads in the area, Dijon Road and Luneville Road, require major work. 'We don't even have an office,' said Rautenbach. 'We don't have a community hall, and we have no recreational facilities.' He said they had received only R100,000 for a humanitarian fund, like all other wards in the metro. Short-sighted 'This is very short-sighted from the municipality,' he said. 'Because it should be clear that the only direction in which Gqeberha can grow is in this westerly direction. 'I am very upset. Residents are making their contributions, and they are getting nothing.' Three other wards are facing the same outcome. However, Ward 41, represented by Luyanda Lawu, the mayoral committee member for safety and security, is set to receive about R48-million in the upcoming budget and R42-million and R37-million, respectively, for the next two financial years. The ward has several informal settlements that need major infrastructure projects. Last week, the budget was once again 'noted' in the council as Nelson Mandela Bay Executive Mayor Babalwa Lobishe said negotiations around ward allocations were ongoing. According to the budget document, the metro faces 'significant challenges' with the new budget, including: A declining collection rate; The poor financial performance of the electricity service, which now operates at a huge deficit; Escalating electricity and water losses that are at unacceptably high levels; Allocation of the required operating budget provision for newly created infrastructure and facilities, with a consequential impact on the level of property rates and tariff increases; Allocation of the required budget provision for the rehabilitation and maintenance of infrastructure; Underfunded mandates, such as the Library Services, negatively affect the municipality's budget; and Financial commitments emanating from previous council decisions, such as the insourcing of security guards, which become an ongoing cost on the municipality's payroll. DM
IOL News
06-06-2025
- Politics
- IOL News
Exploring the five critical issues in KwaZulu-Natal local government
The South African Local Government Association (SALGA) in KwaZulu-Natal identified five problems facing municipalities in the province. Image: Screengrab Political leadership is getting weaker, and at the next local government elections, there might be a huge turnover with many new councillors who will be part and parcel of governing municipalities without the requisite experience. This was the view of the South African Local Government Association (SALGA) in KwaZulu-Natal, which went on to identify the core problem that local government is inadequately equipped to fulfil its development agenda. SALGA made the remarks during the launch of the KZN Speaker's Forum and signing of a memorandum of understanding at the KZN Legislature on Friday. The forum is aimed at strengthening cooperation and coordination between the two institutions. This partnership is expected to enhance support to municipalities and strengthen legislative oversight programmes across the province. SALGA identified five problems in local government, which are: Poor political leadership capacity and weak administrative management. Inefficient and non-integrated local government delivery mechanisms, systems, and processes to enable service delivery. Ineffective utilisation of financial resources (poor financial administration), inability to collect revenue, and insufficient fiscus allocation Degenerating infrastructure and non-existent or poor services provided to local communities. Poor relationship with citizens leading to loss of confidence in local government. The KZN Speaker's Forum aims to empower speakers through the sharing of reports, develop strategic partnerships, and improve oversight programmes. Furthermore, this strategic collaboration will provide a structured platform for addressing service delivery challenges and promoting intergovernmental participation, particularly within Integrated Development Plan (IDP) processes. Nontembeko Boyce, speaker of the KZN Legislature, said no speaker should feel isolated, nor should the council have to navigate complex challenges alone. She stated that through this forum, they should support and learn from one another and stand together as leaders for the greater good of the province. 'Our communities do not care where a service comes from, they expect service delivery. They do not care who fixes the road, who installs the tap, or who makes sure the clinic is working, they just want it done. And they want us, as their leaders, to pull in the same direction. With all those expectations, the local government, as a sphere in which service delivery is the first point of call for our communities,' Boyce said. The forum's objectives are: To exchange knowledge, skills, and views on strategies to strengthen good governance and deepen democracy. Build a stronger link between councils and the provincial legislature. Share what works, and help each other through. Speak with one voice on issues that affect our communities. Sithole Mbanga, SALGA CEO, spoke about harnessing the power of political leadership to restore public trust and drive service delivery. Mbanga said the challenges they face are maintaining public trust from society and ensuring effective service delivery demands urgent attention. 'The government is under pressure to deliver, which is an important issue. We are not here to pay lip service, we want to form a relationship between the provincial and national governments. If you look at the surveys that one conducts and the perception that society has against local government, it is negative.' Mbanga expected new councillors to be part of governing municipalities after next year's elections. 'Without the requisite experience, it will be a problem for us. We will have to upskill those people who are going to become part and parcel of the leadership,' he said. SALGA's mandate is to transform local government to enable it to fulfil its development. Mbanga said SALGA is focused on four things: leadership, differentiation, data optimisation, and management and coordination. 'A mayor cannot run a municipality if there is no collaboration with others. Our mayors are saying help us to build that layer of leaders from the other spheres of government and other spheres of business and society," Mbanga said. [email protected]
IOL News
05-06-2025
- IOL News
City of Tshwane introduces WhatsApp channels for improved service delivery updates
The City of Tshwane has launched eight WhatsApp channels, marking a significant step towards enhancing communication with its residents. Image: Freepik The City of Tshwane has taken a significant step towards improving communication with its residents by launching of eight WhatsApp channels. The channels, which comprise seven regional channels and one city-wide broadcast channel, aim to provide residents with immediate access to service delivery information across all seven regions. Executive Mayor Nasiphi Moya said the launch marks a huge milestone in the administration's efforts to keep Tshwane residents informed about all service delivery matters. 'The City of Tshwane is the first municipality in South Africa to launch WhatsApp channels of this scale,' she said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading The channels will provide residents with updates on reported issues such as sewer spills, water or power outages, including progress on repairs and estimated restoration times. They will feature clear and easy-to-understand communication, with service alerts, public service announcements, and project and programme updates. Service alerts will include updates on water, electricity, and sewerage disruptions, road closures, ICT issues, and municipal service schedules. Public service announcements will cover information on policies, by-laws, public participation events, Integrated Development Plan meetings, imbizos, office closures, and warnings against unlawful activities. Residents are encouraged to join the channels specified for the areas they reside in, which will appear under the 'updates' tab once subscription is successfully completed. Moya emphasised that the channels are not intended for political messaging and are designed to supplement the core duties and responsibilities of local councillors. 'We expect that the addition of this virtual portal will serve as a useful tool, along with the city's social media platforms and website, to improve access to information,' she said. With the launch of these WhatsApp channels, the city believes it is set to revolutionise the way it communicates with its residents, providing them with timely and relevant information to enhance their lives.
