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'Nelson Mandela Bay Municipality struggling to spend 2019 budget': DA

Feb 12, 2019
'Nelson Mandela Bay Municipality struggling to spend 2019 budget': DA

The lack of capacity within the African National Congress (ANC)-led "coalition of corruption" is the root cause of the Nelson Mandela Bay Municipality only spending 27% of its Capital Budget in the first six months of the 2018/19 financial year, the Democratic Alliance (DA) said on Tuesday.

"For this reason, service delivery in the City has basically ground to a halt.

"The statistics for spending by 31 December 2018 in the various directorates makes for shocking reading," said DA Eastern Cape leader, Nqaba Bhanga.

"Safety and Security only spent 3% of its budget whilst only R62.5 million of the R284 million for Roads and Stormwater (22%) was spent.

"Budget and Treasury spent R784 000 of its R12 million (6.6%), Corporate Services R1.5 million of R42.1 million (4%) and the IPTS R26 million of its R199.9 million budget."

'Coalition of Corruption’s incapacity causes Nelson Mandela Bay spending crisis'

Bhanga said that in the previous financial year, the ousted DA-led coalition government spent 100% of its Urban Settlements Development Grant (USDG) funding received from National Treasury.

"Under the ANC-led coalition of corruption, Nelson Mandela Bay has only spent 16.9% (R153.4 million of R905.6 million) of its Urban Settlements Development Grant (USDG) for the current financial year," he said.

"Virtually no houses have been built in the first six months of the financial year. At the end of December 2018, only 4.18% (R112.3 million of R607.4 million) of the housing budget was spent."

Bhanga further said that the DA-led government made a huge difference in Nelson Mandela Bay in the 24 months it was in charge of the City and achieved the following financial successes:

  • The City was financially liquid with over R2 billion in the bank and received a AAA credit rating;
  • Achieved annual financial statements that indicate the administration has achieved record levels of spending in the financial year 2017/18;
  • Boasted one of the best Urban Settlements Development Grant (USDG) spending performances in the country at 100%; and
  • Tripled the number of annual jobs created by the EPWP (Expanded Public Works Program).

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