‘Budget shortfall of up to R180m’

THREE to five years – that is how long it will take him to return Oudtshoorn municipality to normality, the municipality’s administrator Kam Chetty said yesterday.

Following allegations of mismanagement and corruption, Chetty said there was a budget shortfall of between R150 million and R180m.

Oudtshoorn municipality has over the past few years experienced instability as the DA and the ANC continually tussled for control of the council. The national government intervened and Chetty was given executive powers on September 28 this year.

Local Government, Environmental Affairs and Development Planning MEC Anton Bredell said Chetty had found there were poor financial and budgetary controls, and cash flows remained under severe pressure.

Chetty said he would minimise all non-essential expenditure and ensure strict control. He had found that the Cango Caves had no operating budget, he said.

There had been a general deterioration of infrastructure, while some management inadequacies had been identified. An expenditure budget had been developed for an interim period and technical issues such as lighting and water were being addressed.

Chetty said a task team had been established to recommend an appropriate management model for the Cango Caves. He said the town faced a significant housing backlog.

There were some additional challenges like housing for disabled people and some existing housing units that had fallen into disrepair.

A forensic investigation had been instituted, municipal staff had been interviewed and data was being analysed, he said. A forensic report was expected by the end of January.

Bredell agreed the turnaround of Oudtshoorn would not happen overnight.

Bredell said debt exceeding R11m to housing agency Asla had been repaid and repayment of money owed to Eskom had commenced.

Roads throughout Oudtshoorn were in a poor condition and funds had been allocated for repairing potholes.

Work had already commenced.

“In order to empower the council, training and workshops for councillors have been held and relevant portfolio committees established.

“The issues with water are of growing concern. The region is one of the worst water affected areas in the province,” said Bredell.

A major problem was that the capacity of the treatment plant was inadequate and would have to be upgraded from six mega litres per day to 9.2 mega litres per day, and the indications were this would cost an estimated R4.8m, Bredell said. “The department has already reprioritised some Municipal Infrastructure Grant funding and this has made R2m available.

“Officials are still investigating ways to fund the remainder.

“I remain disappointed that the situation had to come to this. It bears reminding that various departments have been monitoring and trying to advise Oudtshoorn within the limits of existing legislation for years, but the council in charge at the time rather chose to counter co-operation with legal action on numerous occasions. This has delayed many of the actions we are now implementing.” sandiso.phaliso@inl.co.za

@PhalisoSandiso