DA slams BCM's "Disinvestment" Budget

The Democratic Alliance has rejected the R5.265 billion Buffalo City budget tabled in Council today. The municipality is budgeting Capital Expenditure of R751 million (most of which is grant funded) and Operating Expenditure of R4.2 billion.
 

The municipality has, for the 5th consecutive year, approved double-digit increases in rates and tariffs – more than double the upper limit set by National Treasury, and well above the inflation rate. This is despite the fact that the municipality underspends on its budget every year and has billions in cash investments.

The municipality is not encouraging investment and development in the city – it’s actively chasing it away!

Over the past 5 years, the rates and tariff increases amount to 111%.

The DA has, during last year’s budget debate, highlighted a number of areas requiring urgent attention. These included:

1.     A greater emphasis on revenue collection;

2.    The implementation of public-private partnerships to enhance service delivery and ease the burden on the municipality;

3.    The re-establishment of Tourism Buffalo City and the Buffalo City Development Agency as bona fide municipal entities as provided for in the MFMA;

4.    The immediate commencement of appointment processes for s56 officials – especially the Chief Financial Officer;

5.    An urgent review of the Supply Chain Management Unit and SCM processes to enhance efficiency; and

6.    Greater investment in basic infrastructure – electricity, roads, water and sanitation – through leveraged financing.

Of these, the only significant progress has been the appointment of the Chief Financial Officer.

The DA believes that the municipality had failed to properly consider the submissions of the community in its public participation process, and that the rebate structure for indigents and pensioners was an “all or nothing” approach. If your household income is one rand over the threshold, BCM will not give you any rebate.

The DA has proposed a stepped approach to rebates and indigent grants.

The DA lays the blame for the municipality’s continued underspending and poor service delivery squarely at the door of the ANC.

This is indicative of a government that doesn’t care and a government that believes it has a divine right to rule.