Lukhanji underspends

LUKHANJI Municipality spent only 6% of its capital budget for the first quarter of the 2015-16 year, according to the mayor’s quarterly budget monitoring report presented at the council meeting on Friday.

Executive mayor Nozi Makanda said capital expenditure was 29% below the service delivery budget implementation plan (SDBIP) for the first quarter of 2015-16. “Grant spending on municipal infrastructure grant projects shows 11.2% expenditure (R4 163 691), while spending on own funded projects shows only 0.79% (R299 286).

There was R8.8-million under-collection of income from property rates. “While undercollection may be investigated, at this stage it can be attributed to the municipal accounts which are not delivered by the Post Office. Most ratepayers complained about not receiving their accounts. The municipal manager (Nolwandle Gqiba) and the revenue section are working on alternative means to have these accounts delivered to the account holders. (During the) same period last year, the municipality under-collected by R12.2-million.”

Bulk purchases remained the most significant expenditure, comprising 50% of operating expenditure by September 30. “Bulk purchases for the first quarter amount to R66-million while the operating expenditure amounts to R119.5-million.”

The municipality had spent 13% (R8.6-million) of its overall budget at the end of September last year, collecting 28% (R113.5-million) of its revenue and spending 24% (R92.6-million) of operating expenditure on a cash basis. The sport, recreation, arts and culture department owed R126 239, education R509 302, health R1 207 889 and public works R15 728. Agriculture owed R22 008 and social development R90 884.

DA caucus leader Chris de Wet said the party would not condone the expenditure.