GRAAFF-REINET NEWS - While the Dr Beyers Naudé municipal adjustment budget has been approved, Provincial Treasury promises to keep a close eye on the financial situation of the municipality.
Mayor Deon de Vos tabled the budget at a council meeting on 5 November. He told Council that Provincial Treasury will, for the interim, monitor the municipality's financial status.
As of 18 November, Chief Financial Officer Heleen Kok, councillors and other managers, must submit a weekly cash flow statement to Treasury. This must be accompanied by clear, concise medium-term plans to achieve and maintain a funded budget. Treasury also wants a submission of payment plan for all creditors.
National Treasury has indicated that, according to their assessment, the original budget of the council remains unfunded. In a letter dated 15 October, Provincial Treasury reacted to National Treasury, highlighting the main concerns of the unfunded budget.
De Vos said Kok and Municipal Manager Dr Eddie Rankwana, met with both National and Provincial Treasury on 23 October, to discuss the way forward.
Mayor Deon de Vos. Photos: Christo Vermaak
Good news
However, there is some good news. Eastern Cape Premier Oscar Mabuyane has allocated R4 million from his office to the municipality. A further infrastructure grant of R15 million has been allocated while the rollover of a drought relieve grant to the value of R24 million has been approved.
Initially, R30 million had been approved, and no explanation could be given as to why this amount is now R6 million less.
The adjustment budget states that revenue will increase with R56,5 million, of which R43,1 million is additional grant funding and R13 million additional revenue due to fund enhancement strategies.
These strategies include replacement of old electricity prepaid meters, electricity meter audits, implementation of a new valuation roll, and a debtors data cleansing project.
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