Msunduzi’s underspent budget is ‘disappointing’

2016-01-21 11:30

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Pietermaritzburg - Opposition parties on Wednesday expressed their disappointment with Msunduzi’s use of the budget six months into the current financial year.

The mid-year budget review, discussed this week, revealed that most business units have underspent on their budgets.

DA councillor Dave Ryder said it was disappointing to see how far the municipality would have to go to acheive a “reasonable” expenditure at the end of the financial year.

“With this rate, will we even be able to implement the projects that we set out for this financial year?” he asked at a special full council meeting yesterday.

Echoing Ryder’s sentiments was IFP councillor Dennis Ntombela.

Msunduzi Municipality chief financial officer (CFO) Nelisiwe Ngcobo presented the 2015/2016 mid-year budget performance review to full council yesterday, saying she hoped for an improvement by the end of January. “With regards to the city finance department, we only make payments according to the work done. I am hoping there will be an improvement once invoices and reports are tallied at the end of this month,” said Ngcobo.

The main concern surrounding the report is that Infrastructure Services held the highest unspent balance — 74,91% — among all the units in the municipality.

The Infrastructure Services Portfolio, responsible for the day-to-day maintenance and development of the municipality, only spent around 25% of their R589 434 000 capital so far.

Ngcobo said she also hoped for an improvement in this unit next month.

“Most contractors shut down in December therefore invoices will only be given out in February which should show a difference,” said Ngcobo, adding the council still faced many challenges such as ageing infrastructure, performance of conditional grants expenditure, revenue collections in the financial year to date not being high enough and that debtors fluctuated month to month.

• kailene.pillay@witness.co.za

EXPENDITURE SUMMARY
PER BUSINESS UNIT

City Manager’s office: Spent 69,57% — Unspent 30,43%

City Finance: Spent 38,74% — Unspent 61,26%

Community Services and Social Equity: Spent 72,3% — Unspent 27,7%

Corporate Services: Spent 69,13% — Unspent 30,87%

Infrastructure Services: Spent 25,09% — Unspent 74,91%

Sustainable Development and City Enterprises: Spent 60,88% — Unspent 39,12%

Read more on:    msunduzi municipality  |  pietermaritzburg  |  budget

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