3 February 2025
Stephanie Walker, Executive Officer, DOCRRA
064 737 2269
stephanie@docrra.co.za
www.docrra.co.za
DOCRRA Analysis of the Auditor General’s report for the KDM 23/24 financial year
DOCRRA welcomes the Auditor General’s clean report for the KwaDukuza Municipality’s 2023-24 finances and in particular the reduction in illegal and wasteful expenditure. The six-monthly budget overview also indicates the bottom line is positive.
But, once again there is questionable under-expenditure in both operational and capital budgets. Huge challenges lie ahead and the costs of this summer’s electricity crisis have still to be brought to book.
The failure of KDM to recover the costs of the electricity it buys from Eskom has reached alarming proportions with no clear indication of an effective programme to combat these losses. Provincial grant money to help, meanwhile, lies unspent.
Electricity provision is in crisis, yet the relevant department shows an underspend on capital projects, an alarming vacancy list, and insufficient money devoted to maintenance. We are now paying for this mismanagement.
There is a slew of other worrying details. There has been a decrease in basic service delivery efficiency by KDM’s own metrics. Good governance perception by the public had declined by 14 per cent in a year and this is even before the electricity crisis. Only 62 per cent of basic infrastructure targets were met in the 2023/24 year and 63 per cent of flood relief targets. This is simply not good enough.
The Auditor General has raised concerns about contract management by KDM and, separately, a Special Investigation Unit (SIU) probe has been announced. Last year there were 150 appeals against tender awards. What is happening?
As we do each year, the DOCRRA finance team will analyse the Annual Financial Statements for 2023/24 as well as the KDM Annual Report. A comprehensive list of questions will be prepared and submitted to the Municipal Public Accounts Committee (MPAC). This list will be made available to our members.
Now, more than ever, is the time for the residents and ratepayers of the Dolphin Coast to mobilize and demand their public representatives account for the mess they have created AND that the community is expected to pay to fix.
Join DOCRRA and help to make a difference: https://docrra.co.za/membership/
Ends.
For media inquiries:
Stephanie Walker, Executive Officer, DOCRRA
064 737 2269
stephanie@docrra.co.za
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