Nelson Mandela Bay Metro Council Passes Budget Amid Chaos and Pleas for Improved Governance

Strategic Insights -

The Nelson Mandela Bay metro council finally passed its budget on Wednesday, 18 June, despite trading insults and pleas for improved governance between councillors. The budget increases property rates by 5% for water, sewage services, and refuse services, but the council has yet to hear from the National Energy Regulator (Nersa) about whether it has approved the metro's request for a further 12.8% increase in electricity tariffs.

Key Takeaways:

  • The Nelson Mandela Bay metro council passed its budget on Wednesday, 18 June, with 64 yes votes to 56 no votes, but the count was disputed by several councillors due to three vacancies on the council.
  • The budget increases property rates by 5% for water, sewage services, and refuse services, but the council has yet to hear from Nersa about whether it has approved the metro's request for a further 12.8% increase in electricity tariffs.
  • ANC councillor Xolani Notshe said the budget was necessary to improve lives and allocate bigger budgets to wards without infrastructure, but also called for accountability in implementing the Municipal Public Accounts Committee's plan.
  • The ACDP's Lance Grootboom criticized the budget, saying it was "daylight robbery" and that residents were being forced to cover the "black hole" of the electricity department, which was running at a R1.8-billion deficit.
  • The DA voted against the budget, citing its regressive assessment by the provincial government and its assumption of a 76% collection rate despite only collecting 72% of rates.
  • The United Democratic Movement's Luxolo Namette said the budget was a "determined effort to turn the tide" but sounded the alarm on the deficit in the electricity department that currently stands at R1.3-billion.
  • Lawrence Troon from the Good party referred to a criminal case against senior officials on corruption and accused them of nepotism and laziness in the collections department.

Statistics:

  • The budget increases property rates by 5% for water, 5% for sewage services, and 5.5% for refuse services.
  • The council has yet to hear from Nersa about whether it has approved the metro's request for a further 12.8% increase in electricity tariffs.
  • The city's collection rate is currently 72%, short of the Treasury's ideal revenue collection rate of 95%.
  • The metro's deficit in the electricity department stands at R1.8-billion.
  • The deficit in the electricity department is currently at R1.3-billion.
  • The metro's collections department is accused of corruption and nepotism.

Sources:

  • [Councillors traded insults and pleas for improved governance while the Nelson Mandela Bay metro council finally passed its budget on Wednesday, 18 June. Nelson Mandela Bay ratepayers will, from July, pay more for property rates – 5% more for water, 5% more for sewage services and 5.5% more for refuse services.](https://www.iol.co.za/news/south-africa/eastern-cape/councillors-trade-insults-and-pleas-for-improved-governance-as-nelson-mandela-bay-budget-passed-76375018)
  • [Speaker Eugene Johnson first announced that the budget was passed by 64 yes votes to 56 no votes. But the leader of the Democratic Alliance (DA) in the metro, Rano Kayser, said the count was impossible as the council has three vacancies – meaning 120 sitting councillors were not present. The African Christian Democratic Party’s (ACDP) Lance Grootboom said there were indeed four vacancies, so a maximum of 116 councillors could vote.](https://www.iol.co.za/news/south-africa/eastern-cape/nelson-mandela-bay-metro-council-passes-budget-amid-chaos-76374491)
  • [Executive Mayor Babalwa Lobishe said the budget was structured in such a way to safeguard the metro’s reserve funds. “I have overemphasised already that we are going to deal with improving the metro’s revenue collection,” she said.](https://www.iol.co.za/news/south-africa/eastern-cape/nelson-mandela-bay-metro-council-passes-budget-amid-chaos-76374491)