Report Back: Key Takeaways from the KDM Mid-Term Report

On Thursday, 26 January, the mid-term financial report was tabled before the KwaDukuza Council and subsequently analysed by DOCRRA Vice Chairman and Finance Subcommittee Chairman, Brian Botes. Unfortunately, the themes of electricity losses, budget underspend, and unfilled vacancies remain ongoing.  The result is an operating surplus of R63 million against a budgeted deficit of R4 million.

In light of these issues, DOCRRA have submitted comments and queries to KDM on the following:

• electricity losses continue and are increasing which will place undue burden on ratepayers to fund maintenance costs in the 2024 budget,
• underspending of both capital and salary expenditure (through unfilled vacancies) are having a negative impact on service delivery – DOCRRA have requested a schedule of all concluded tenders for capital expenditure as well as a status report on the flood damage repair spending,
• discrepancies in revenue collection for waste removal which leave services unpaid are also bound to affect ratepayers in the next budget,
• the order of a new fire fleet is welcomed after many years in the budget,
• repair budget is being spent but overall maintenance budget remains too small.

We look forward to feedback from the CFO and other executive directors on these issues as well as the opportunity to discuss them at length at our upcoming quarterly meeting later this month.