EFF- ANC Budget: A Carbon Copy of the “Back to Basics Budget” tabled by the Multi-Party Coalition in March 2023

Joint Statement by Cllr. Fanyana Nkosi and Cllr. Alta de Beer — DA Spokesperson and Member of Finance Oversight Committee, Ekurhuleni

Date: 25 May 2023

Release: Immediate

Type: Media statement

The Democratic Alliance (DA) in Ekurhuleni welcomes the budget tabled by the MMC for Finance, Cllr. Nkululeko Dunga, today. The Medium-Term Revenue and Expenditure Framework (MTREF) (budget) for the 2023/24 to 2025/26 financial year is tabled in terms of Section 24 of the Municipal Finance Management Act and is a carbon copy of the original budget presented by the Multi-Party Coalition in March 2023.

The budget has gone through numerous public participation processes and has remained virtually unchanged by EFF-ANC Coalition. Residents can rest assured that the plans set out by the Multi-Party Coalition will be implemented as promised during our tenure in government. It is reason and many others, that the DA voted in support of this budget, as it was essentially our budget tabled in Council.

The key budgetary allocations made under the “Back to Basics Budget” which were included in this budget are:

• An allocation of R555 million for Capital Expenditure and R1 billion for Operating Expenditure to prioritise and stabilise the Energy Grid, including the funding of 10 of the 75 Independent Solar Power Producers to offset the impact of loadshedding on our residents.
• An allocation of R587 million to the Water and Sanitation Department to improve water infrastructure and reverse the backlog on infrastructure maintenance to ensure reliable, clean, running water in the City that is safe to drink and prepare food with.
• An allocation of R54 million to the Environmental and Waste Management Department of which R20 million will go into purchasing waste trucks to stabilise waste management in the City.
• An allocation of R256 million to the Roads and Stormwater Department for the upgrade of roads and repair of potholes.

These budgetary allocations will give expression to the needs of residents on the ground by ensuring that water and electricity infrastructure is maintained and repaired timeously, the waste backlog is reduced, roads are maintained, potholes are patched, streetlights are fixed, and the grass is cut and maintained in parks and cemeteries across the City.

With regards to the Tariffs, the following tariff increases have been proposed in the 2023/24 MTREF in line with the proposals of the Multi-Party Coalition:

• Property Rates — 4.4%
• Sanitation — 5.3%
• Refuse Removal — 5.3%
• Water — 12%
• Electricity — 15% /18.65%

The highest of these increases are on the water and electricity items which are determined and imposed by Rand Water and the National Energy Regulator of South Africa (NERSA). While the ANC and EFF called the DA anti-poor during our tenure, residents can recall that the former Executive Mayor, Alderman Tania Campbell opposed the exorbitant 18.65% increase which was proposed by NERSA in January of this year, in the wake of the country’s loadshedding and cost of living crisis. We warned NERSA that given the rate of unemployment and the rise in inflation, residents would not be able to afford these tariffs. The Multi-Party Coalition also introduced a number of debt rehabilitation and incentive programmes that are still available today, to assist residents who are in arrears, by writing off close to 50% of their debt. We also introduced a zero per cent increase in property rates in our first year of office following the irregularities and inconsistencies in the property valuation roll.

Like the rest of the country, we knew that our communities were facing the aftermath of the Covid-19 pandemic and have been subjected to the worsening load-shedding crisis that is destroying jobs, livelihoods, and causing an increase in crime. It was therefore incumbent on the Multi-Party Coalition to provide residents with some form of relief so that they would be able to recover financially and free themselves from the icy grips of debt, hunger and poverty. While the ANC national government continues to fail to address this crisis, the DA in Ekurhuleni is pushing forward to ensure that the IPPs introduced during tenure are implemented to reduce our reliance on Eskom.

Although the budget is 95% of what the Multi-Party Coalition tabled in March 2023, we have however identified a few budgetary items of concern:

• The ballooning of contracted services by R37 million and the subsequent movement of the Ekurhuleni Project Management Office (EPMO) under the MMC of Finance’s portfolio.
• The increase in the Real Estate Budget, more specifically, the R46 million allocation to the SAAME Building renovation project which is now 6 years behind schedule and over R200 million over budget.

While many parties may have retracted their position to stop corruption in the City, the DA in Ekurhuleni has always remained firm in its resolve, to close the taps of corruption by introducing measures to prevent the wastage of financial resources and curb maladministration and fraud. Whether in government or opposition, we are determined to see corrupt acts and their actors stopped in their tracks and prosecuted. Corruption cannot be swept under the carpet, and even our current position in Council will not stop us from continuing to close the taps of corruption. Left to their devices, the EFF and ANC will ensure the collapse of service delivery and of Ekurhuleni as a whole.

While we are looking forward to seeing significant improvements in service delivery following the budgetary allocations, the true value of the budget will, however, only be seen in its implementation. The MMC of Finance failed to provide a concrete plan on how the City will improve its revenue collection rate. An increase of revenue from an average of 86% to 90% is required to ensure that this “Back to Basics” budget is delivered. The formula is simple, a stable city with improved service delivery requires excellent revenue collection, consistent cash flow, and investments in current and new infrastructure, to meet our “Back to Basics” mandate.

While we cannot directly implement the important changes that we have made in the budget given our position in Council, we will ensure that the budget is spent accordingly by holding the EFF-led Coalition accountable for good governance and service delivery at Council, Oversight, and Ward levels. Moreover, we will not shrink our constitutional and legal obligations and allow corruption to take centre stage at the expense of delivery.

The DA remains committed to ensuring that all residents receive quality service delivery and will remain firm in its resolve to ensure a responsive, stable, and accountable government that delivers, whether it be in the ruling or opposition seats of the Council.

Cllr. Fanyana Nkosi

DA Spokesperson for Finance, Ekurhuleni

063 649 7044

Cllr. Alta de Beer

DA Member of Finance Oversight, Ekurhuleni

082 777 1406