2013/2014 BUDGET SPEECH BY CHIEF ALBERT LUTHULI MUNICIPALITY EXECUTIVE MAYOR CLLR BP SHIBA.

The Honourable Speaker of Council, Councillor SM Nkosi

Chief Whip of Council, Councillor DP Nkosi

Members of the Mayoral Committee

Chairpersons of Section 79 Committees

Leaders of All Political Parties

Honourable Councillors

Traditional Leaders

The Municipal Manager, Mr VN Mpila

Directors and Officials

Citizens of Chief Albert Luthuli Municipality

Ladies and Gentlemen

Honourable Speaker, I profoundly thank you for this opportunity to address council and inform our 187010 citizens on the spending plan of our municipality for the financial year 2013/2014.

The German philosopher, Karl Marx, acutely cautioned in his eleventh thesis in 1845 “philosophers have only interpreted the world in various ways; the point is to change it!” In other words, we would have done our people a great disservice and dismally failed our fragile democracy if we only end after reflecting on the state of our society and the challenges it confronts.

That will only constitute half of the responsibility we are charged with. The other half is to put in place a set of interventions to change whatever needs to, in order to move closer to our goal which is a society free of poverty, unemployment and inequality. Which is generally referred to as, a better life for all!

The budget we are presenting here today is one of the most potent instruments and interventions at our disposal to change the lives of our people and respond to the prestigious call by Karl Marx of changing the world.

This people’s budget which is a product of extensive consultation with our community must go a long way in changing the path of history and registering our intolerance with the triple challenge of poverty, unemployment and inequality. If it does not do that it will go down in history like any other speech which had no meaningful impact in the lives of our people.

Honourable Speaker, when presenting this budget of our poverty muzzled municipality which is in the main about doing as much as possible with as little as possible, I cannot resist the temptation of remembering the Nigerian novelist Ben Okri in 1997 when he said:

“If we refuse to face any of our awkward and deepest truths, then sooner or later, we are going to have to become deaf and blind. And then, eventually, we are going to have to silence our dreams, and the dreams of others. In other words, we die. We die in life.”

In the midst of the challenge of high poverty levels and low revenue collection we must still choose to remain true to Ben Okri’s words, and not silence our dreams,choose life and not death and we must stand ready to face our awkward and deepest truths.

We must choose not be deaf to the voice of those suffering the pain of not receiving running water, electricity and sanitation. Despite the skills shortage in our municipality and at times limited capacity to deliver on our spending planwe must choose not to be blind to incompetent and greedy officials.

In the same spirit we must also choose not to be blind to service providers who live on the motto ‘it’s our turn to eat” and are seating in some corner with their calculators as we present this budget. Those who see a self-serving opportunity in the people’s budget, in his budget speech MEC Madala Masuku called them tough looking tsotsi’s who only want to plunder public resources.

Our response to the present crisis of extremely limited financial resources with such high levels of backlogs must be to face the challenge before us boldly and collectively as a council. We have to put self-interest aside, face each other honestly and openly and place the best interest of our people above all.

In framing the 2013/14 budget we were guided by the manifesto of the ruling party the African National Congress, 2014 millennium development goals, our IDP document and national and provincial priorities, which we summarised to be following 3 pillars:

  • Protecting the poor
  • Expediting the delivery of basic services like water, electricity, sanitation, etc
  • Sustaining financial viability and getting value for money

Review of performance:

As an institution we must at all times be able to account for how we used public resources and whether we were able to deliver on agreed development outcomes. Honourable Speaker, in the previous year we set ourselves to deal with the following to reverse the frontiers of poverty:

  • To increase the number of households receiving electricity. It is with glee that I report that we were able to electrify more than 800 households in this financial year, which resulted in the people of Omnia, Lustof, Mafufumbe and sections of Dundonald receiving electricity for the first time. We request the technical department and PMU to move at a faster pace in energising those houses which have been electrified but not energized.
  • We committed to assisting the fight against crime by increasing the number of high mast lights and streets lights. We have indeed remained true to our commitment and installed 16 high mast lights which must be energized so that our people can feel their impact and enhance the creation of a secure environment.
  • We committed to providing clean water to every citizen of Chief Albert Luthuli Municipality. Even though not at satisfactorily levels we are slowly moving in the correct directions. We are in the process of refurbishing water infrastructure in Methula, Ekulindeni and Lusushwane and were able to change pipes to improve our supply of clean water.
  • Restoring the dignity of our people by giving them decent structures to relieve themselves. We have successfully built 1070 VIP toilets in the current financial year and are in the process of building 183toilets top structures in Silobela. Honourable Chief Whip we assure you that the ANC government will not build open toilets for our people like others did in the Western Cape.
  • The improvement of our access roads remains a priority. It is indeed very sad that the Sowetan newspaper has been on the rampage to tarnish our image because of bridges and access roads. But refuses to acknowledge and report to our citizens that in the current financial year we were able to pave roads in Mayflower and are currently paving in Badplaas and Ekulindeni.Their journalists don’t go to Nhlaba and Robinsdale where we are rehabilitating bridges.
  • The issue of the capacity of the state to deliver is very important. In the current financial year we continuously trained officials to be able to deliver services better to our people and have increased the number of managers and Directors who have registered for the minimum competence certificate to comply with treasury regulations.

These are amongst the many achievements we were able to register in the current financial year ending on 30 June 2013. Honourable chief whip the above is sufficient testimony that can convince a blind man that the ANC government as led by President Jacob Zuma is delivering. Asimanga Siyasebenza!!!

Honourable Speaker, the 2013/14 budget as highlighted earlier demonstrates our commitment to increase the pace at which we deliver basic services to our people, increasing financial viability of our municipality and advancing social protection for the poor which are the most vulnerable in our society.

The total budgeted amount for the 2013/14 financial year is a small R394 781043, indeed not enough to meet our socio-economic needs as a municipality, but as I said earlier we ought to make as much as possible with as little as possible.

I think it is important for the benefit of both council and our community that I explain where this money comes from or what our finance officials refer to as source of income. In the 2013/14 financial year our equitable share allocation from treasury amounts to R171, 462 million and we expect our revenue collection to be 75% of our operating costs which are R280,976,317.02.

In this financial year we were able to obtain conditional grants in the form of Municipal Infrastructure Grant (MIG) to the amount of R77, 543 million and Integrated National Electrification Municipal Program grant to the value of R10, 5 million. I mention this because of our vision which commits to transparency and not for the benefit of the tough looking tsoti’s MEC Masuku spoke about. Ngisho laba abafuna ukuyisenga noma seyilele!

Priorities for 2013/14

Honourable speaker, protecting the poor and unemployed remains our priority and as result we have increased the indigent threshold to cover those with a combined income of R2300 from covering those with an income of R1800 in the 2012/13 financial year. Above these we have the following social packages to cushion the poor:

  • Free Basic Water – 6kl per month for every households
  • Free Basic Electricity - 50kWh per month for registered indigents
  • 50% Discount Sanitation Services for registered indigents
  • 50% Discount on Refuse Removal Services for registered indigents

The ANC government is indeed a caring government and will always side and protect the poor.

The provision of basic services like water, sanitation and electricity to our people remains a non-negotiable and we shall fight for it till the end of our term. We will do this because we know very well the pain of mother’s who have to walk kilometres with a bucket on their back get water or with wood on their heads to make fire to be able to cook.We dare not fail in this task because we would have failed to restore the dignity of our people which was taken away from them for than 300 years.

In the 2013/14 financial year we commit to spend R39 284 800 in upgrading our capacity to deliver clean and drinkable water.This will include upgrading of Eerstehoek , Lusushwane, Empuluzi and Carolina water schemes. This is consistent with the noble call by the Premier of Mpumalanga, that we must prioritize the provision of clean water.

In this financial year we will start a process of gradually phasing out the contracted water tankers and switch to drilling and equipping of electric boreholes in various wards that have a problem of water supply. This will enhance our capacity of supplying sustainable clean and drinkable water.

The provision of decent restrooms and improving our sanitation infrastructure remains a priority and we have in this financial year budgeted R13247000. We plan on totally eradicating the sanitation backlog in the next to financial years.

The people of Swallowestnest, Steynsdorp, Josephsdale, Leliefontein, Engelsdraai and surrounding areas will in this financial year take to the dustbin of history the life of collecting wood to make fire and buying candles for light, because we have budgeted R 24087568 for electrification of households in these areas. We thank the Integrated National Electrification Program by ESKOM.

INEP from the Department of Energy and own funds will be responsible for electrifying more than 808 households in various wards. This will go a long way in reducing our electricity backlog.

We have additionally budgeted an amount of R5265550 to increase public lighting in different wards that didn’t benefit in the last financial year. We remain committed to the creation of an environment where all citizens feel safe and secure.

We will in this financial year improve our road infrastructure to ensure a conducive environment for those commuting to work and school. We plan on paving roads totalling 15 kilometres in various wards. We have also requested different mining houses to assist us maintain and rehabilitate our aging road infrastructure, we anticipate a positive response.

The municipality welcomes interventions from the NCOP, Department of Culture Sports and Recreation and MIG in the construction of community assets in the current financial year. Recreational centres for the use by our youth, a taxi rank and a landfill site are amongst the projects in the community assets budget that will be amounting R15144 385. We request ourcommunities to jealousy safeguard and protect these assets because they belong to them.

Honourable Speaker, these are the planned major capital project for the financial year which we must strive by all means to ensure that every cent of it is felt by the intended beneficiaries which is the ordinary men on the street.

In this financial year all hands must be on the deck in trying to ensure that we realize the outcomes of operation clean audit.We must ensure that we spend every cent wisely and be able to account for it. Financial viability can only be realized if our community which are ratepayers also play their part in this drama of development and pay for services in time.

Employee related cost amount to R 89821 407.22, which makes it the biggest part of our operational budget. So it is inevitable that officials of council must also play their part in this drama of development and ensure that they give council and ratepayers value for money.

They must move away from the growing trend of coming to work as late as possible and leaving as early as possible because they are paid to be at work from 7:30 to 16:15. Those entrusted and paid allowance for being on stand-bye must at all material times be ready for duty whenever it calls, that is the value for money we want. It is our failures on these minor things that completely erode the confidence of our people in government institution.

I would not have concluded the discussion on value for money if I did not welcome the recommendations from the premier in his state of the province address on a price standardization committee. This is a discussion council must take further in trying to defeat these tough looking tsoti’s who when providing services to government collude for excessive price mark-ups. This day light robbery at times goes as far as selling a loaf of bread for R100.

Honourable Speaker, allow me to conclude by thanking the budget steering committee which worked around the clock and at times irregular hours to ensure that today becomes a resounding success. A profound thank you to the acting CFO Mr M. Nhlabathi and officials in his department.

I would also like to thank all councillors and officials as led by the municipal manger Mr VN Mpila for the progress we made in the financial year ending in 30 days time. I hope this year we will work harder than we did to take our municipality to greater heights.

No matter the difficulties and challenges we may confront, we must never give up. We must always cherish the truth that every champion was once a contender who never gave up. Chief Albert Luthuli Municipality will one day rise above poverty, unemployment and inequality.

I thank you!

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