Madam Speaker, Honourable Mayor, Fellow Councillors, Citizens of Ndlambe,
It is with great sadness that we find ourselves a year down the line, and a year deeper in trouble. At last year’s budget vote, the Democratic Alliance highlighted the problem areas in the proposed budget, and yet, many of the same issues arise in this year’s document. There can be no doubt that Ndlambe municipality is on the verge of bankruptcy. The Oversight Report on the Annual Report presented to Council at the end of March painted a damning picture of municipal mismanagement, confirming exactly what the Democratic Alliance has been warning of for the past 4 years: a rapidly deteriorating financial crisis which the ANC leadership repeatedly denies exists.
Madam Speaker, during the budget votes last year and the year before that, I noted that the initial budget to be tabled in Council 90 days prior to the start of the new financial year should be substantially compliant with all requirements of the MFMA, and should be a realistic budget, capable of being seriously considered by Council for adoption at that point. In fact, regulation 14(1)b of General Notice 393 echoes this almost word for word. The draft budget tabled on at the end of March, failed substantially in this regard, in that it proposed a deficit of some R8 million.
On a similar note, last year I highlighted the shortcomings of the municipality in terms of legislative and regulatory compliance. This year, we have done little better. Specific issues of concern include:
- The absence of a funding and reserves policy, as required by regulation 8 of General Notice 393 of 2009.
- The failure of the municipality to ensure that all funds are fully cash backed, as required by regulation 12(1) of General Notice 393 of 2009.
- The failure of the municipality to prepare and report on the SDBIP, as required by s53 of the MFMA.
I am aware that the Director: Finance has undertaken to ensure that these issues are rectified during the forthcoming financial year. Frankly, Madam Speaker, I am appalled that they have not been rectified as part of this year’s budget process!
In the 2008/2009 budget, the rates increase was 12%. In 2009/2010, it was 11%. Admittedly, these increases were based on the old property valuations, but the revised valuations (despite a drop in the rate in the rand year on year) have resulted in an effective 38% cumulative increase in the amount residents actually pay in cold, hard cash, over a period of just 3 years! That means that, in just 3 years, the cost of living in Ndlambe (excluding service charge increases) under the ANC’s mismanagement has risen by 38%!
And what services do our residents and ratepayers receive for this? Sewerage flowing into our once pristine rivers; roads that are a danger to vehicles, drivers and pedestrians; refuse that isn’t collected and water that is undrinkable – amongst the worst in the country according to the Blue Drop report – when we have water at all! We have uncooperative staff, who appear to do very little for the fat salaries that they earn, and when we ask that they be disciplined, nothing is done, because “it is an internal matter”.
How much longer, Madam Speaker, can the ANC expect the goose that lays the golden egg to continue doing so, without that goose at least receiving some scraps from the table? How much longer can ratepayers be expected to continue forking out for lavish stays at the R13000 per night Sandton Sun, before they cry “Enough!” and move elsewhere? How much longer can the retired person, living on a fixed income, continue to pay the increases I have indicated? How much longer before the struggling businesses in Campbell Street pack up and relocate to a more conducive business environment, where costs are contained and services delivered?
Last year, the DA rejected the budget, and yet the ruling party saw fit to pass it. As an aside, Madam Speaker, I have to ask: “When is the “ruling” party planning on learning how to govern?” Leaders are servants, not rulers. Whatever happened to “the people shall govern”? Kings are rulers, dictators are rulers. Elected representatives and officials in the state apparatus in a democratic state are public servants, not rulers.
Turning to the budget in detail, Madam Speaker, a number of serious concerns have been identified. Some are noted in the budget document (page 19), through the process of public participation. Sadly, however, the concerns and criticisms noted therein have NOT been addressed.
The first point I must note is that although we spent a day workshopping the budget with the municipal officials – and I am very pleased to report that through the detailed analysis the Democratic Alliance provided, we managed to shave R 3.68 million off the expenditure – I still only received my final budget yesterday. Madam Speaker, that is insufficient time for anyone to properly review the material.
Secondly, we acknowledge that we have, at last, received the organograms depicting the organizational structure we have been requesting for some time. These do not, however, meet our requirements for budgetary purposes. We need to be able to clearly identify the positions that are vacant, and also those new positions proposed. We need to interrogate the cost implications of each and every position. This will enable Council to apply its mind as to the necessity of the positions.
Madam Speaker, we are in dire financial straits. According to table A1, the Employee Costs of the municipality have leapt from R59 million to R67 million – an increase of R8 million or 14.2%! The only reasons that our salaries bill comes in at 32.2% of the total operating budget, is the inclusion of the grant income and expenditure, and the exclusion of councillor allowances. Otherwise, it would be much higher! Madam Speaker, the time has come for the municipality to review its hiring practices, staff structures and operational practices and to determine whether it could be better served by entering into public-private partnerships with service providers to deliver the services we seem unable to do ourselves. A good starting point in this regard might be refuse collection. The City of Johannesburg has for a number of years utilized the services of Pikitup – a successful PPP – to render all of its refuse collection, waste management and street cleaning needs, and this model could easily be replicated locally.
There is a very valid and reasonable concern that Ndlambe’s senior officials and councillors are out of touch with the working class. One only has to look at the salaries and wages the S57 employees and the councillors are taking home to see this. Madam Speaker, one cannot contradict the fact that our directors are earning double the salaries of the next level post. This is an untenable situation! We question whether the citizens of Ndlambe are getting value for money from these overpaid and underperforming tenderpreneurs. Madam Speaker, the Democratic Alliance proposes that an across the board decrease of 10% be applied to the gross salaries of S57 employees and councillors, and that no increase be applied at the next salary determination. We further propose that no performance bonuses be awarded for this financial year.
Contrary to legislation, municipal by-laws and national treasury regulations, there is evidence that certain officials and their immediate families have participated by way of shareholdings and interests in companies and /or organisations supplying goods and services to the municipality. We are aware that a forensic audit, compiled by Price Waterhouse Coopers, covering many of these issues is already in the public domain, and, allegedly, it damns senior staff, councillors and municipal systems. We question when this document is going to be presented to Council?
Revenue collection remains a major problem, and has for the past nine years. Despite promises of action and solutions, year after year the problem persists. In fact, our problem has grown: National and Provincial Departments are consistently in arrears – at last check to the amount of some R2 million. Normal debtors – the residents and businesses of Ndlambe, on whom the municipality relies – stand at some R84 million, with over the majority being outstanding for over 30 days. Unless and until we regularly collect the full amount owed to us on a monthly basis, we are going backwards.
The problem is exacerbated by the fact that the mayor fails in his legally obligated duties to submit quarterly financial reports to the Council on the implementation of the budget and the financial state of affairs of the municipality. This is something I have personally requested on no fewer than 6 occasions in Council. Madam Speaker, I am tired of excuses. The citizens of Ndlambe are tired of excuses. When will the mayor report?
Although I could continue ad nauseam, I want to highlight one final item. It has come to our attention that senior officials of this municipality are abusing the municipal Travel and Subsistence Policy. This is in direct contravention of both Council resolution and an undertaking by the mayor that the municipality would be cutting back on extravagant expenditure. Madam Speaker, I refer specifically to Ms. Mali’s overnight stay at the Sandton Sun at a cost of some R13 000. How much longer are the ANC going to protect this woman? Madam Speaker, the Democratic Alliance proposes that an immediate moratorium on all travel and subsistence to workshops and conferences be put in place for the foreseeable future. We cannot continue jetsetting our way around the country, while Ndlambe suffers at home.
We must start cutting our coat according to our cloth. We propose that the budget starting point should not be expense-based, but rather revenue-based. In other words, determine how much income the municipality has available, and prioritise expenditure accordingly, rather than trying to increase revenue to make up for projected over expenditures. We submit that an increase of 7.5% would be far more acceptable than the 13% currently mooted, and that this would make a reasonable starting point from which an expenditure budget could be developed.
In conclusion, Madam Speaker, let me state categorically that the Democratic Alliance rejects this budget, not for the sake of being contrary, but for the good of all the people of Ndlambe.
The Democratic Alliance therefore proposes, as a substantive motion, the following:
- That the organogram provided be updated to show filled posts, vacant budgeted posts, vacant unbudgeted posts, proposed new posts and the total cost to company of each post
- That Council urgently consider the organogram to determine the necessity of these posts and whether retrenchment is an option.
- That the filling of all vacant posts be frozen for the forthcoming financial year, and that no new posts be created for and during the same time frame.
- The Price Waterhouse Coopers forensic audit be presented at a Special Council Meeting for consideration and action.
- That S57 employee salaries and executive committee allowances be cut by 10% of the gross cost to the municipality, and the allowances of ordinary councillors be cut by 5% of the gross cost to the municipality.
- That no performance bonuses be awarded this year.
- That the mayor provide a written explanation to Council, copied to the MEC for Local Government and Traditional Affairs and the National Treasury, as to why he has repeatedly failed to submit quarterly financial reports to Council as required by S52(d) of the MFMA despite repeated requests for this information from the DA.
- That all travel and subsistence to workshops and conferences be suspended for the forthcoming financial year.
- That SALGA be approached to differentiate between metro municipalities and other local municipalities when handling salary negotiations with municipal unions.
- That the rates increase be limited to no more than 7.5%, and that the budgeted expenditure be amended accordingly.
I AM THE GRANDSON OF amaNdlambe, the Ndlambe municipality is not existing at Ndlambe land, this need to be considered, ndlambe land is at Nxarhuni, close to east london.
By: Cebo Tabayi on November 10, 2010
at 11:44 am
The Municipality takes its name from Chief Ndlambe, the highest-ranking chief of the amaXhosa who historically inhabited the municipal area. As European travelers, explorers and farmers of Dutch descent (Boers) began to move into this region in the late 1700′s, he was the chief they had to deal with. By 1796, his Great Place was on the banks of the Bushman’s River, where many of the incoming visitors met with him.
For the first several decades of Dutch settlement in Ndlambe’s territory, his sovereignty remained unquestioned. However, as Boer settlement increased, their desire for political domination grew. In 1811, the Dutch-speaking farmers persuaded the British colonial government to use military force to clear the entire area between the Sundays and Fish Rivers of its African inhabitants. At that time, this area was known as the Zuurveld, after the sour grasses that dominate the terrain.
Ndlambe and his sub-chiefs tried to negotiate with the British military and civil officials. In one famous encounter between Ndlambe and Col John Graham, the commander of the British forces, Ndlambe shouted at him, shook his spear and shield, stamped his foot on the ground and said, “This land is mine!” The negotiations failed, because Ndlambe refused to agree to the voluntary removal of his people from their homes. War started and when it became evident that the British guns and horses gave them a huge advantage in the fighting, Ndlambe moved his people safely across the Fish River. Outsmarting his British adversaries, he led his people in a night-time evacuation. They used the horns of their cattle to carry bundles of household goods. Although the British tried to pursue them, they could not catch up.
After the evacuation, the British tried to clear the Zuurveld area of any remaining African inhabitants. They scoured the dense bush along all the river beds, under instructions to shoot anything that moved. To prevent people from returning to their homes, all villages were burnt, grain pits destroyed and ripened crops were trampled under foot by teams of oxen brought in especially for this task. Many stragglers lost their lives through this campaign and a few women and children were taken prisoner and forced to work as servants for the English.
Sporadic raiding and unrest continued in the Zuurveld area from 1812 to 1819, as Ndlambe’s followers attempted to regain control. The conflicts intensified, resulting in what is known as the “Brereton raid” in which Col Thomas Brereton led British forces in attacks on Ndlambe’s people in their new homes beyond the Fish River. When he took 20 000 head of cattle from them, they retaliated with intensified guerrilla warfare consisting of raids against Boer farms. By March of 1819, virtually all the Boer farmers had left the Zuurveld and the Governor declared a state of emergency. Ndlambe, under the advisement of his influential military and spiritual advisor, Makanda, persuaded the King of the amaXhosa, Hintsa, to call on warriors from as far away as beyond the Kei River to combine in a major attack on the British garrison at Grahamstown.
An estimated 10 000 Xhosa soldiers took part in the Battle of Grahamstown on 22 April 1819, under the leadership of Makanda and Dushani, Ndlambe’s eldest son. However, 2000 of them died in the face of British artillery fire and the British won the battle. Over the next six months, the British made an all-out effort to defeat Chief Ndlambe. They called up commondos from throughout the Western Cape and brought additional forces and technicians into the frontier zone. Ndlambe and Dushani escaped beyond the Kei River, while several of the sub-chiefs negotiated peace treaties. When Makanda surrendered himself, the British placed him on Robben Island. He died escaping one year later.
When the war concluded in October, 1820, Ndlambe’s followers agreed to settle beyond the Keiskamma River, leaving the territory up to the Fish River vacant. It became known as the “ceded territory”. However, within a few years, individual sub-chiefs got permission from the British to re-occupy the area, first for grazing and then for settlement.
When missionaries began moving into the areas between the Fish and Kei Rivers they found chief Ndlambe living in the area of Mount Coke, near King Williams Town today. In 1824, Ndlambe agreed to allow the missionaries to build a station near his Great Place, asking them to help in communications with the British government. In fact, they played a crucial role in building peaceful co-existence between the amaNdlambe and the Colony, mediating in agreements about land, cattle and trade, while offering Christianity and education.
Chief Ndlambe died in 1828, alleged to be over 90 years old. At the time he had 10 wives and the whole nation shaved its head in mourning. He has been called the “Father of African Nationalism” for this staunch insistence on the sovereignty of his people, despite the overwhelming power of British military forces.
By: Kevin Mileham on November 10, 2010
at 12:16 pm
commenting by using cut and paste is not sufficient, it is the accademic crime, it is called plagiarism. Therefore it is prohibited, do mot do that, rather than using your own ideas. from Cebo Tabayi.
By: cebo Tabayi on December 15, 2010
at 1:14 pm
Cebo,
As a councillor in Ndlambe, I have access to the raw information utilised in the communication presented by the municipality. In many respects, I represent the municipality.
This information was taken directly from the municipality’s website (www.ndlambe.gov.za), where you could have found it, had you looked. I doubt that anyone would regard my copying of the information in my original reply to you as “plagiarism” – I certainly never tried to pass it off as my own work.
Rather than debate this irrelevant side-issue, perhaps you would care to respond to the content? Do we have it wrong? If so, where and how?
By: Kevin Mileham on December 15, 2010
at 1:39 pm