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DA claims ANC-led Nelson Mandela Bay unable to spend Capital Budget

May 23, 2019
DA claims ANC-led Nelson Mandela Bay unable to spend Capital Budget

DA has written to new Eastern Cape Premier, Oscar Mabuyane, to intervene

Port Elizabeth - The Democratic Alliance (DA) in the Eastern Cape on Thursday accused that African National Congress (ANC), the Economic Freedom Fighters (EFF) and United Democratic Movement (UDM) coalition in the Bay of "yet again [proving] that it is incapable of governing the Nelson Mandela Bay Metro."

According to the DA, the ANC-led coalition will not be able to spend its Capital Budget by the end of the 2018/19 financial year on 30 June 2019.

"As of 15 May 2019, the ANC-led coalition of corruption had only spent 41,9% of its Capital Budget for the current financial year," said DA Eastern Cape leaader, Nqaba Bhanga.

"The latest available figures show that the municipality has spent just over than R892-million of its R2,1-billion Capital Budget, which means it has less than 45 days to spend more than R1,2 billion.

"During the last administration the DA called for the support to the Municipality, in line with Section 154 of the Constitution of the Republic of South Africa."

Bhanga said that he has now written to newly elected Eastern Cape Premier, Oscar Mabuyane, requesting that his new administration urgently intervenes in Nelson Mandela Bay’s administration, by means of Section 154 support. Read the letter HERE.

"The Metro’s capital expenditure in the 2018/19 financial reads like a horror story," he added.

Here is the breakdown click HERE:

  • Budget and Treasury (5,24%)
  • Chief Operating Officer (69,3%)
  • Corporate Services (6,89%)
  • Economic Development, Tourism and Agriculture (9,43%)
  • Sports and Recreation (24,98%)
  • Human Settlement (39,46%)
  • Electricity and Energy (37,2%)
  • Roads, Stormwater, Transportation and Fleet (44,58%)
  • Water Services (45,5%)
  • Sanitation Services (57,69%)
  • Public Health (37,41%)
  • Safety and Security (30,68%)
  • Nelson Mandela Bay Stadium (10,69%)

'Nelson Mandela Bay Municipality operating without a permanent CFO'

"A further cause for concern is that should the City fail to appoint permanent Chief Financial Officer (CFO) before end of June, it is likely to forfeit all grant funding not yet committed," Bhanga said.

"The previous DA-led coalition government in Nelson Mandela Bay, through exceptional governance, raked in an additional R200 million for the Nelson Mandela Bay Municipality.

"National Treasury recently confirmed that the City will receive this money due to the DA-led administration utilising 100% of its Urban Settlement Development Grant (USDG) in the 2017/18 financial year.

"The DA-led government also spent 100% of its USDG funding in the 2016/17 financial year and was thereafter rewarded by National Treasury with R178 million additional funding."

He said that it is now clear that the ruling ANC/EFF/UDM coalition will not be able to spend its Capital Budget and the latest additional R200 million received from National Treasury by the end of the financial year.

"If the City does not utilise all of this additional funding by the end of June, it will be forfeited back to National Treasury."

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