TWO WESTERN Cape municipalities have once again been thrust into the spotlight for allegations of underspending with a direct impact on service delivery in Saldanha and calls for the removal of the Knysna council leadership over alleged corruption findings.
Citing the annual budget 2024/25 Medium-term Expenditure Framework, Services to Our People’s Party’s (STOPP) Peter Plaatjies accused Saldanha Municipality of “consistent underspending” with a direct impact on the delivery of infrastructure projects and service delivery.
According to the report, the capital budget for 2021/22 was R225,556,182 while the actual spend was R137 972,846 or 61%. The capital budget for 2022/23 was R309 974,574 while the actual expenditure was 70% amounting to R216 818,464. For 2024/25 the estimated capital budget was R326 852,540 with an estimated spend of 80% amounting to R261 482,032.
“The report shows that capital spending has often been less than planned, between 61% and 95% in past years. The Capital Replacement Reserve which is supposed to fund critical infrastructure, is almost empty (over the 3-year MTRE F period).
“There has also been consistent underspending on projects that could improve the lives of residents. As a result, residents are paying the price. Electricity and water bills are going up, but services are not improving. Infrastructure projects are either delayed or abandoned, and support for poorer households is under threat because the municipality cannot manage its money properly,” said Plaatjies.
Saldanha Bay Municipality said to date, 61% of the tender value for the 2024/25 financial year has been allocated to 276 capital projects.
“Saldanha Bay Municipality spent R239 million and R217 million in the previous two financial years and is well on its way to exceed that expenditure this year. To date, 61% of the tender value for the 2024/25 financial year has been allocated. This allocation pertains to 276 capital projects that are underway, with spending on these projects constituting 31% of our capital budget. This is due to the supply chain process, which includes the advertising, evaluation, and adjudication of new projects in the first 6 months of the financial year. Spending on these and other projects will increase during the second 6 months of the financial year. The remainder of the projects, of which some are multi-year projects, are still in various stages within the procurement process,” Saldanha Municipality spokesperson, Ethne Lawrence said.
The main adjustment budget will be considered by Council in February 2025, according to Lawrence.
Meanwhile, pressure is mounting on the Knysna council leadership including mayor Aubrey Tsengwa, deputy mayor Alberto Marbi and speaker Mncedisi Skosana, to step down over alleged corruption.
Knysna United called for the implementation of a report’s findings from a committee appointed by Local Government MEC Anton Bredell.
The committee comprising of advocate Trisha Sarkas and Deirdré Viljoen was required to establish whether any councillors committed a breach of the Code of Conduct for Councillors in relation to a decision of the municipal Council on 16 September 2022 to create seven support staff positions in the offices of the mayor, the deputy mayor and the speaker and the decision to appoint the staff and pay them, among others.
The report found a failure of “proper assessment of the affordability of the additional positions was undertaken” and lack of “the necessary financial information” to assess the affordability of the additional positions, among others. It recommends fines of 25% from monthly allowances for three months, among others.
In light of the findings, Knysna United said: “We want answers on the millions that were wasted on Wheelie Bins, on Prepaid Water meters, on the security contracts, on water and refuse trucks, the Knysna Mall, to only mention a few. Knysna Unite calls (for the) implementation of the committee report and the removal of the Mayor, Deputy Mayor and Speaker.”
Knysna municipality spokesperson, Christopher Bezuidenhout said: “Councillors have been granted the opportunity to make representations to the MEC. As the process is still ongoing, we are unable to provide further comment at this time.”
Bredell’s office did not respond to requests for comment by deadline.
Cape Times