Danny Jordaan to present his first budget

2015-06-18 08:48
Danny Jordaan. (File, Netwerk24)

Danny Jordaan. (File, Netwerk24)

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Port Elizabeth - Nelson Mandela Bay’s newly-elected mayor, Danny Jordaan, will face his first real test as mayor on Thursday as he presents the city’s amended budget for approval.

Nelson Mandela Bay’s budget for the 2015/2016 financial year was supposed to be adopted by the end of May. The first version of the budget, presented to council in April, was opposed as it had a deficit of R430m.

The acceptance of the budget was then delayed further when former mayor Benson Fihla resigned and Jordaan took over the reins of the city.

When Jordaan was elected as mayor, during a special sitting of council that had been convened to address the budget and integrated development plan, Jordaan told the council that he would not be presenting the budget.

The Municipal Finance Management Act stipulates council had to adopt the budget by the end of May, but it also states that if it’s not approved, council will have to sit every seven days until it is approved. The municipality then also had to file for an extension from the Eastern Cape Department of Local Government.


Subsequently Jordaan brought in former ANC councillor, Rory Riordan, to assist with the budget and the new budget being presented on Thursday is a much changed document, with a R42m surplus.

Drastic cuts have been made, including cuts to international travel, contract security, public holiday celebrations, conferences, travel and vehicle hire as well as funding to cover vacant posts and critical skills levies.

A significant cut in spending on infrastructure repairs and maintenance has also been proposed.

The budget also proposes harsh increases for residents, tabling increases 9.5% for property rates, 12.2% for electricity, 13% for water, 12% for sanitation and 11% for refuse removal.

The Democratic Alliance has already indicated that they will be opposing the budget, with the DA’s Mandela Bay Caucus spokesperson, Dean Biddulph, saying the budget “does not adequately address the demands of an opportunity city”.

Read more on:    da  |  anc  |  danny jordaan  |  port elizabeth  |  local government

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