The DA in Ekurhuleni urges Executive Mayor to place Service Delivery before Political Vanity

by Ald. Tania Campbell — DA Caucus Leader in Ekurhuleni

Date: 25 April 2023

Release: Immediate

Type: Media Statement

The Democratic Alliance (DA) in Ekurhuleni has decided not to attend the State of the City Address (SOCA) scheduled for Today, 25 April 2023, as a result of the costs associated with the event and the financially precarious position of the City.

It has always been the position/intention of the DA to have the SOCA and Budget Address incorporated into the ordinary proceedings of the Council as an annual report so that it does not result in unnecessary financial expenditure and fanfare. With consideration of the current financial state of the City, the DA has worked tirelessly during our tenure to close the taps of corrupt officials and politicians to state funds. The SOCA itself is not a legislative reporting requirement, but a political spectacle, with no bearing on the operational and financial performance of the City.

Ahead of the SOCA, the DA Caucus Leader, Ald. Tania Campbell forwarded a letter to the Executive Mayor, Cllr. Sivuyile Ngodwana, on the 21 April 2023, imploring the Executive Mayor to continue the trend of cost containment and expenditure control as instituted by the DA-led Multi-Party Coalition during its tenure and that all costs saved instead, should be re-directed towards service delivery given the state of the local economy and the current national cost-of-living crisis.

Mentioned in this letter, was the financial state of the City upon accession to office, which included:

• a collection rate of around 84%, compared to the budgeted 90%;
• cash on hand deteriorated to a 14-days reserve,
• a Moody’s downgrade at the end of November 2021, necessitating a R500m reduction in borrowing, thus impacting negatively on capital expenditure.

As well as an array of expenditure control, cost-containment measures, and revenue enhancement programmes that have been introduced by the former Executive Mayor, Ald. Campbell, to improve the financial status and operating performance of the City, and to prevent possible financial catastrophe.

This included amongst other things:

• The freezing of all vacant posts, including the shortlisting of already advertised positions.
• The introduction of pre-approvals by the Finance Department on all overtime work regardless of the threshold.
• Centralising of procurement of office furniture, and information and communication technology.
• Granting approvals on the procurement of critical or essential goods which is intended to improve service delivery, only.

As well as the suspension of:

• Branding of corporate gifts
• Conference fees
• Refreshments
• Travelling, except where fully funded
• Travel and subsistence claims including fully funded trips
• Catering for all administrative meetings
• Training except where sponsored
• Rental of venues for Council Events
• Attendance of workshops or forums where travelling expenses must be paid

In addition to these measures, the DA endeavoured to cut costs on all major events and vanity projects in the city including the 2022 State of the City Address and the Budget Address, where costs for each event were kept well below R1 million. Under the ANC-led administration, these events would exceed budgets of over R5 million, by employing the services of the politically connected.

It seems like the Executive Mayor did not heed the call of the DA, by choosing to continue with the SOCA in its current form. It is for this reason that the DA has requested to be excluded from the SOCA proceedings, opting instead to participate virtually alongside ordinary residents of Ekurhuleni.

The funds saved from this event could have been used to improve basic service delivery in the City. The country is currently grappling with an ongoing power crisis that has crippled the small business and township economy in the City. During our tenure, over R2 billion was lost to loadshedding, which meant that many basic service delivery projects had to be neglected to keep the lights on in the City. More stands to be lost with the implementation of stage 6 loadshedding, as such, every cent counts towards the improvement of service delivery. The money spent on the SOCA could have fixed potholes in our main roads, cleared illegal dumping hotspots, fixed sewage leaks in our township areas, or assisted in improving access of informal settlements to water and sanitation.

The DA has therefore decided not to attend this political spectacle as it is far removed from the daily realities and struggles that our residents face on the ground.

Ald. Tania Campbell

DA Caucus Leader, Ekurhuleni