Ricochet News

Administrative Stability Restored but Challenges Remain

JANUARY 21, 2015
Administrative Stability Restored but Challenges Remain

After a long period of instability in the administration of Nelson Mandela Bay “administrative leadership has been stabilised,” City Manager Mpilo Mbambisa states in his “overview” of the Annual Report 2013/14.

However, he states, there are a number of challenges facing the metro, including high water and electricity losses and a lack of resources for implementing the Infrastructure Master Plan.

In addition, Mbambisa says, the metro has limited water resources, a lack of funding for megaprojects, ongoing litigation and a qualified audit opinion from the Auditor-General.

Mbabmbisa says the “strengthened and stabilised” administration will allow the municipality to address these challenges.

With regard to the financial health of the municipality, the Annual Report states that the metro recorded an operating surplus of R98.9 million, this “indicates that the municipality has performed much better than anticipated in the 2013/14 Adjustments Budget”.

The Annual Report shows that revenue from the sale of electricity was R2.87 billion compared to the adjustments budgeted amount R2.96 billion, adding that this was due to “electricity consumption patterns being lower than anticipated”.

The reverse situation pertains, however with regard to water, where revenue raised was R505.4 million compared to R498.4 in the adjustments budget due to “water consumption patterns being higher than anticipated”.

Overall, the Report says that the metro's financial position has “improved 2 adding that this is in part due to the implementation of the Operational Efficiency Plan.

“This improvement could be jeopardised if potential financial risks are not mitigated, hence the emphasis being placed on the strengthening of the functional capacity of the Risk Management Unit.

The Annual Report also shows that a number of conditional grants remain unspent.

These include Post-Recovery Disaster Grant (R28.8 million), Public Transport Networks Operations Grant (R9.5 million; and Neighbourhood Partnership Grant (R7.1 million) as well as the Off-Grid Electrification Grant (22 million). - MetroMinutes.