Looking Back to Move Ahead: Analysis of the KDM 2023 Annual Report

The DOCRRA Finance Subcommittee have just completed their analysis of the KDM 2023 Annual Report in preparation for the upcoming Municipal Public Accounts Committee (MPAC) meetings, where DOCRRA will be attending as a registered stakeholder and raising our concerns. 


Whilst our municipality remains financially sound and is ranked an impressive #7 nationwide, it’s extremely important to us to have a close look at the performance across various areas and assess what is being done well and where there is need for improvement. 


Regarding infrastructure and operations, KDM has been fortunate to enjoy access to significant disaster relief funding (outside of their own budget) to make repairs of damages incurred during the flooding and these repairs have largely been executed according to schedule and budget. 

Within the KDM budget, the overall maintenance spend remains below the national recommendation of 6-8% of the total sum despite having sufficient funds available to increase this amount. However, our largest concern remains continued electricity losses which have risen to 26%, amounting to a total of over R260 million for the year.


Despite a multi-layered approach to stem the losses, there has been exceptionally little progress and a lack of transparency as to the efficacy of the measures taken.  Furthermore, there has been no consequence management for those responsible.  These losses represent the largest threat to the revenue of the municipality, and we continue to push for accountability in this regard.


Although there has been some improvement in performance from the previous financial year (57%) to last year (77%), there are several human resource issues that need to be dealt with.  The critical post of Executive Director (ED) for civil engineering remains vacant, as does that of the Deputy Mayor after the untimely passing of TV Ntuli.  CFO Rajcoomar remains suspended (with pay) due to a frivolous case for a few thousand rands, whilst the ratepayers foot the legal bills for the same to the tune of several million rands.  Ironically, consequence management for actual non-performance, and the loss of hundreds of millions of rands, is nowhere to be seen, as highlighted above and noted by the Auditor General. 


Financially, KDM have no new loans, and their collection for rates and services sits at a healthy 95%.  What this figure fails to explain is that there are services being provided for which no bills are issued.  Similarly, the presence of a large operating surplus may seem like a positive sign but it further indicates under-resourcing of the maintenance budget, the internal audit, and human resources.  Many of the communities’ needs outlined in the IDP have not been granted funding due to lack of budget – but is this the true reality?


Our official submission on the report, presented to KDM on 20 February at the first MPAC meeting, will be available in due course.  DOCRRA members and Dolphin Coast residents can rest assured that we have their backs and are reading all the fine print from the report and making the appropriate queries. Have a listen to Chairman, Deon Viljoen’s interview on Radio Life & Style here and stay tuned for feedback on all of the MPAC meetings…and if you value the insight and information on all things related to the accountability of our municipality, please consider joining DOCRRA by clicking here.


If you would like to stay informed with regular updates, join our DOCRRA WhatsApp group with link here.

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