Billions of rands of under-collection projected for Nelson Mandela Bay: DA
Port Elizabeth - The Nelson Mandela Bay is on the verge of economic ruin, with a projected under-collection of R2,6 billion for the municipality in the 2020/21 financial year, according to the Democratic Alliance (DA).
"This came to light in the Metro’s Covid-19 response plan that was presented to government’s Cooperative Governance and Traditional Affairs (COGTA) Portfolio Committee," said DA Eastern Cape leader, Nqaba Bhanga.
"The City confirmed that under-collection is expected to reach R670 million for the 2019/2020 financial year.
"Adding to these woes is the fact that National Treasury appears to be withholding grant funding, to the tune of R750 million, due to the Municipality not adhering to directives that must be implemented before they release this funding."
Bhanga said that despite these significant blows to the City’s income streams, there seems to be no plan in place that speaks to how the effects will be mitigated!
"The DA is extremely concerned that, to date, there has been no Covid-19 expenditure report presented to the Nelson Mandela Bay council. It also appears if Supply Chain Management regulations are now regularly flouted under the guise of Covid-19 expenditure."
He said that he will be writing to the interim Mayor, councillor Tshonono Buyeye, to request the following:
- The City must engage National Treasury to discuss the payment of outstanding grants and the benchmarking of the budget. The Budget and Treasury committee resolved that any benchmarking interactions with National Treasury must take place in a multi-party format;
- The Metro’s Budget Monitoring Forum must meet on a monthly basis to evaluate expenditure reports;
- The Budget Steering Committee, consisting of representatives of all parties, must be re-established. This important committee has not met since the new administration took over the reins of government.
"During the DA and its coalition partners tenure in government the City was financially sound and boasted having a R2 billion surplus and receiving a AAA credit rating," Bhanga said.
"The DA will fight to ensure that the Metro does not fall into total financial ruin to the detriment of citizens that are already hard-hit due to the effects of the Covid-19 pandemic."
Follow more RNEWS articles, subscribe to our YouTube channel and for breaking news LIKE us on Facebook. For news on the Western Cape click here.
For great savings on life’s little pleasures visit Bargain Buys! Know somebody who is getting married, Wedding and Function can assist. Have kids, then you need to visit Kids Connection. Enjoy food and travel, then visit Home Food and Travel. Need assistance with an online presence, visit Agency One.
Related Stories
The Unemployment Insurance Fund (UIF) is committed to pay millions of workers their relief payments under the COVID-19 TERS until the end of June, 2020...
In its latest petrol price prediction for July 2020, the Automobile Association of South Africa (AA) on Monday said that there might...
The Kouga Local Municipality is doubling up its efforts to keep...
The Department of Basic Education says while the decision to...
SAPS Mount Road detectives are urgently trying to trace the next of kin of an unidentified man, whose body was found on Sunday, 21 June 2020...
On Friday, a cold front is expected to brush the coastline with isolated showers and rain along the coastal regions for the Eastern Cape, the Port Elizabeth office of SA Weather Service said...
A consignment of 50 000 face masks was delivered to the Sarah...
Thursday marked the start of the first-ever Virtual National Arts...
South Africans have been encouraged to save water, as water resources and dam levels across the country, with the exception of the Western Cape, continue to decline consistently week-on-week...
Metrorail operated commuter trains between East London and...