GRAAFF-REINET NEWS - In an attempt to rescue the Dr Beyers Naudé Local Municipality from financial ruin, Mayor Deon de Vos has tabled a second adjustment to the 2019/2020 budget on Thursday 27 February.
The adjusted budget must now be approved by the Eastern Cape Provincial Government.
De Vos pointed out worrying statistics, showing that in some areas the budget has already been spent.
Budgeted audit fees and money for security services and vehicle leases meant to carry the municipality until 1 July, have been exhausted.
Bulk purchases (Eskom) are at 65% of budget, with employee-related costs, especially overtime, on 90% of the budgeted amount. In addition, 73% of the legal fees budget has been spent.
DA caucus leader, Danie Bezuidenhout, voiced serious concern about the SARS debt of R9-million and the use of R13-million meant for employees' pension fund.
A wopping R139-million is outstanding for service delivery.
De Vos told Council that the municipality is in dire straits. "Our expenditure and income do not match up," De Vos said. He said it is extremely tough to keep to the budget, but that they are trying.
In the capital adjustment budget, an extra R6,4-million is going to the Department of Engineering and Planning, with R350 000 more for Financial Services.
The revenue budget shows an increase of R17 610 208 and the expenditure budget an increase of R8 348 080. The Department of Engineering and Planning will see the biggest increase, at R13 126 787, with financial services receiving an increase of R9 499 635.
Council only noted the adjustment budget, pending approval from Provincial Government.
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