Low capital expenditure alarms opposition

2017-02-09 06:02

ALTHOUGH the capital expenditure for the 2016/2017 financial year is a mere 22.30% of the approved R63 million capital budget, the Kouga Municipality is confident that the bulk of the capital budget will be spent within the current financial year, ending on June 30, 2017.

“While we would like to see better planning to speed up implementation, it isn’t unusual for capital expenditure to be low during the first few months of a financial year,” says Kouga Executive Mayor, Elza van Lingen.

“This is when low-cost activities such as procurement or site establishments take place. The spending usually picks up once construction is underway or the assets - be they furniture, equipment or vehicles - have been purchased.”

According to Van Lingen, the spending pattern, therefore, is not affecting communities or services negatively at present.

Capital projects approved for the current financial year, include sewerage upgrades across Kouga, the upgrading of caravan parks and camping sites, libraries, transfer stations and fire hydrants; and the acquisition of fire fighting equipment.

It furthermore includes a new community hall for KwaNomzamo, the restoration of the stage at the Kruisfontein Civic Centre, and the fencing of community halls and sport fields.

However, Van Lingen warns that some changes are inevitable. “We are busy putting together the adjustment budget. This will see some changes to the capital budget that was approved by the previous Council.

“The 2016/2017 adjustment budget, with these amendments, will go to Council for approval during February.”

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