The fact that the Nelson Mandela Bay Metro Council (NMBM) still has not adopted its 2024/25 budget is a great cause for concern for the FF Plus. The date on which this budget is supposed to come into effect is just around the corner.
So far, the Office of the Mayor, Gary van Niekerk, has not put forward a budget and has also not provided the Council with an official reason for failing to do so.
According to the Municipal Financial Management Act, a budget must be tabled to the relevant council on or before 31 May.
The FF Plus suspects that the current draft budget is reflecting deficits, while the National Treasury (NT) requires a surplus budget.
If the budget is not adopted before the first day of the new financial year (1 July 2024), the provincial government must dissolve the Council. And then a new council will need to be elected.
In addition, a majority of councillors has to adopt the budget.
The expectation is that the ANC-, EFF-, PA- and NA-controlled Metro government will steamroller the budget through the Council and adopt it, despite a lower collection rate and possibly exorbitant tariff hikes.
Adopting a deficit budget for the upcoming financial year could have devastating consequences for service delivery, especially at a time when crumbling infrastructure and a lack of maintenance are already major problems.
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