Opposition political parties, as well as the agricultural sector, reacted strongly to the budget speech of the mayor of the Makhado Municipality.

Cllr Brian du Plooy from the Democratic Alliance says the budget is unrealistic. He also indicates that figures in the budget had changed twice since the last Council meeting and that proper consultation had not taken place before these changes were made. Of particular concern is the fact that various figures in the operational income and expenditure budget differ substantially.

Du Plooy also indicates that the municipality is extremely optimistic if it imagines that a collection rate of 90% on rates and taxes is feasible, as such a feat has never been achieved by this municipality. The collection rate, according to him, varies between 4% and 74%. He also indicates that restructuring needs to take place within the financial section of the municipality to improve service delivery to communities. The number of vacancies within the municipality is also a grave source for concern, especially in the IDP and LED departments. Added to this are the small budgets that have been allocated to the various departments.

Du Plooy bemoans the fact that, in view of the high inflation rate and the danger of rising interest rates, the proposal submitted by the DA to the effect that the ratio of cent to the rand regarding property rates be reduced was not supported, as this could have been in favour of all rate payers. He adds that the rate for agricultural and rural areas was approved without considering that the income from these areas will be less and that the figures concerned were not rectified.

He is of the opinion that the budget is proof of the ANC’s inability to present a balanced budget and adds that it will leave a shortfall of millions of rands. He also expresses the hope that, when the mid-year budget review comes, maintenance will not be penalized in favour of other expenses.

Du Plooy concludes by noting that, if the municipality’s debt collection measures are effective, the base for revenue collection will increase, which will lighten the load on existing rate payers.

In his reaction, the chairperson of TAU SA North, Mr Dries Joubert, expresses concern with the decision by the Makhado Municipal Council to approve the budget tabled during a meeting held on May 30. The meeting was supposed to start at 14:00, but could not because no quorum of councillors was present. It was verbally postponed to 17:30, but eventually started after 18:00, without any proof that a quorum was present. Mr Stephen Hoffman, Chairperson of the Soutpansberg District Agricultural Union (DAU) questions the fact that huge discrepancies exist between the budget presented at this meeting and the final budget approved by Council, which renders it unacceptable and not in accordance with the prescribed guidelines. The Minister of Provincial and Local Government will be asked to refer it back.

According to the TAU, the R10 million approved for bad debts is totally unrealistic. The real problem is a lot worse: debt outstanding in May at 30 days amounts to R9,6 million; up to 60 days at R3,6 million; op to 90 days at R3,8 million, up to 120 days at R2,8 million; up to 150 days at R2,4 million and for 150 to 180 days at R54,2 million. This shows that outstanding debt is a very old problem and very little is being done to rectify the situation. According to Hoffman, the debt increases by R1 million per month, with the biggest portion being owed for more than 150 days. The figure of R10 million is therefore ludicrous. According to the firm appointed to handle debt collection on the part of the municipality, "the total outstanding debt in arrears increased from R62 301 221 in March 2008 to R65 034 256 in April 2008; the high increase is due to a lot of incorrect billings that was mostly rectified by the municipality". This leaves serious questions about the municipality’s ability to run matters on a sound financial basis.

Hoffman indicates that the bulk of the debts come from the former R293 towns and suggests that councillors who represent areas with large outstanding debts be paid in accordance with the payment rate in their areas. The collection rate from these areas is only 4% and very little is being done to hold those users of municipal services accountable.

It is important to note that, at the end of April 2008, only 34% of the approved budget of 2007/2008 had been spent, amounting to a figure of R27 802 196. The funds allocated for maintenance is the same as for 2002/3, amounting to less than 9% of total operational estimates. In contrast, the increase in personnel estimates is huge, which means that more people are being paid to do less maintenance.

Hoffman states that if the assessment rates adopted by Council for 2008/9 are implemented from 1 February 2009, this will be illegal. He says that the Local Government Municipal Property Act, Act 6 of 2004, indicates that a rate becomes payable from the start of a financial year, which is in July. He urges residents to check their municipal accounts thoroughly to ensure the municipality does not overcharge taxpayers.

In conclusion, Hoffman indicates that the DAU will ask the relevant authority to investigate the municipality according to Section 106 of the Local Government Municipal Systems Act, Act 32 of 2000. He feels that squandering the tax payers’ money constitutes gross negligence. He states that the municipal council, once proudly independent financially, has been reduced to nothing more than a beggar and political slave to the ANC-controlled notional government which has no choice but to follow dictated policy. Councillors’ inability to curb spending money on themselves or to make sure that the available money is spent well defies the provisions of the Municipal Demarcation Act. He urged rate payers to join the Soutpansberg Ratepayers Association to hold the municipality accountable.