ANC government had poor financial record

HOT TOPIC: Criticism of rates increases

THE letter by councillor Rory Riordan, “Metro residents hit by a double increase in rates” (July 27), has reference.

The sanctimony of this ANC financial spin doctor is something to behold, especially as the electorate turned its back on his [party’s] profligate spending and woeful delivery record.

Like all of his colleagues he still wants to convince us to vote for a better yesterday, whereas the voters voted for change and a better tomorrow.

Now let us look at some of the facts, an inconvenient truth for some, if I dare say.

While preparing the budget for the 2017-18 financial year, we were mindful of the fact that Nelson Mandela Bay residents have been taxed to the hilt over recent years.

Over the past decade our tariff increases have often been double the annual inflation rate. Cognisant of this burden, council adopted a basket of tariff increases for the 2017-18 financial year that was the lowest of all metropolitan municipalities in the country.

That said, it is an unfortunate reality that we had no choice but to propose higher tariffs in our metro.

Let me be frank, our finances in Nelson Mandela Bay are far from being sound.

As I pen this letter, we are busy with financial forecasts for the city for the next five years.

Given the fact that we have a R21-billion backlog in infrastructure refurbishment to eradicate, the coming financial years are going to be extremely difficult for the metro.

We are convinced, however, that through continued financial prudence and operational efficiency, as well as the identification of new revenue streams in the very near future, we will be able to achieve our objectives.

While Riordan no doubt has a critical role to play in providing oversight over the budget and treasury directorate, the irony of his latest rant cannot be discounted.

I have highlighted below just a few of Riordan’s less than stellar achievements during the 2015-16 financial year:

The lowest collection rate ever to be recorded in the history of NMB.

A collection rate of just 91.4% against a targeted 94% meant an under-collection of some R140-million;

The worst spending record in the history of our metro.

Under his stewardship, grant funding was underspent to such an extent that National Treasury refused to roll over unspent grant funding in the amount of R64.7-million;

Irregular expenditure in the metro to the tune of R1.3-billion;

Fruitless and wasteful expenditure to the tune of R49.6-million;

Unauthorised expenditure to the tune of R521 056;

A fifth qualified audit opinion. In stark contrast to the aforesaid, the current administration has already increased the collection rate to 93.7%, and achieved record spending in respect of especially capex and grant funding.

In addition, my office oversees any matter which may lead to irregular expenditure and instances of the same are prevented at all cost.

We are currently in the process of preparing the annual financial statements for the institution and more information will be released in this regard over the coming weeks.

Riordan has much to offer the Nelson Mandela Bay council as an opposition councillor.

While I appreciate the art of opposition politics probably more than most people, he must remember that he has a responsibility to hold the administration to account, and not to mislead the public with alternative facts and mistruths.

Investigations in respect of the fruitless, wasteful and irregular expenditure incurred during the 2015-16 financial year are still on-going.

Retief Odendaal, member of the mayoral committee for budget and treasury, NMB