Adjustment Budget Presentation for 2023/2024 delivered by mayor of KwaDukuza, Cllr. Lindile Nhaca, at a council meeting held at the Town Hall

Good morning ladies and gentlemen. 

We hold this important occasion during an interesting period in our democracy where the entire nation will be commemorating thirty years since a non-racial, non-sexist and democratic government was elected by the people in 1994.

 

The upcoming Freedom Day on Saturday, 27 April 2024, will be a significant moment for South Africa to reflect on her achievements and to be reminded of the atrocities of the erstwhile government which thrived through racial marginalisation, forced removals and displacement, Human Rights Violations, perpetuated inequalities and economic exploitation.

 

We are reminded that on this historical day in 1994, South Africans from all lengths and breaths lined the rows to usher in a new government that was to ensure that the lives of all citizens are fully improved with the guaranteed socio-economic reforms.

 

South Africans used this opportunity to indulge in universal suffrage as they wanted better and equal opportunities in the land of their own.

 

A total of 19,7 million voters stood shoulder to shoulder to remove the government that had been oppressing the liberation of the poor majority across margins of race. 

 

The 1994 polls gave birth to the Government of National Unity led by President Mandela which focused on governing by consensus and building peace, building unity whilst correcting the socio-economic injustices of apartheid.

 

We thank our forbearers who led the struggle to liberate the nation. Their legacy has continued since 1994 and continues to shine even today.

 

Thirty years on, let us therefore continue to deliver and celebrate the freedom and successes of our nation, a nation that has delivered much more than expected. A government that has forged unity amongst the people and has given us a reassurance that South Africa is indeed a better place than it was before 1994.

 

Madam Speaker, KwaDukuza Municipality as part of commemorating the breakthrough of 1994, we will be organising the 100% Homebrew Music Festival at eThembeni Sports Ground on 27 April at 12:00. Let us gather in our numbers to express our patriotism and reaffirm hope for a better future into the next thirty years.

 

Fellow members, the item before you makes reference to the third adjustment during the financial year, accordingly delivered in compliance with Section 28 (2) of the Municipal Finance Management Act.

This adjustment provides for revisions of the monthly and quarterly service delivery targets and performance indicators as recorded in the revised Service Delivery Budget and Implementation Plan adjustments which have been affected on the Capital Budget.

There may be material changes to the approved procurement plan as well as the approved organizational scorecard and IDP for the 2023/24 financial year.

This adjustment stems from the Government Gazette which was received by municipality in March 2024, on the adjustment of allocations to municipalities for the 2023/24 financial year.

The Gazette highlighted the stopping and re-allocation of conditional grants which is done in terms of the Division of Revenue Act No. 5 of 2023 (DoRA) as amended, against municipalities that reported significant underperformance as at midyear i.e. 31 December 2023, and non-compliance against conditional grant frameworks and the provisions of the Act against the 2023/24 allocations. The gazette also provides for additional funding to support fast moving projects to accelerate the implementation of those projects. 

 

Operational Adjustments

 

The following adjustments are therefore proposed for consideration to the conditional grants.

1.   The current grant allocation of Energy Efficiency and Demand Side Management Grant (EEDSM) is R5 million and the proposed adjustment is R2 million which totals to R7 million.

2.   The current grant allocation of Municipal Infrastructure Grant (MIG) is R57 million and the proposed adjustment is R16,6 million which totals to R40,640 million

Capital Adjustments

 

The following amendments have been made to the Capital Budget as a result of Government Gazette.

1.   Energy Efficient Retrofit Project (EEDSM funded) under the Electrical Business unit – additional R 1,7 million (excl. vat)

2.   MIG funded projects that have been affected under the Civil Business unit are as follows:

Sokesimbone Access road & Stormwater, Melville Community Hall, Charlottesdale Community Hall, Lindelani Creche, and the Nonoti Beach Access Road. The breakdown of the adjustment is on page two of the item.

 

Taking the above amendments into consideration, the capital budget has been adjusted to R1,122bn

Speaker, in the item served before Council, the recommendations are set out in the Adjustments Budget Item for further indulgence.

 

I herewith submit recommendations of the adjustment budget on page 3-5 of the Council Agenda for consideration and approval of the 2023/2024 third Adjustment Budget.

 

Thank you!