The Freedom Front Plus (VF Plus) today voted against the Mogale City Local Municipality’s proposed R160 million budget adjustment for depreciation and asset impairment for the 2026/27 financial year, due to insufficient information to assess the necessity and extent of the adjustment.
Mogale City residents have the right to know how their tax money is managed and why such a significant adjustment is necessary.
Although depreciation and asset impairment are established accounting practices, major financial adjustments should only be approved once sufficient explanations and justifications have been provided to the Council.
During the discussion, several questions were raised about the composition of the proposed amount, the calculations on which it is based, and the circumstances that gave rise to the adjustment.
Clarity should be provided on what portion of the amount relates to depreciation, how much is attributable to asset impairment, and what portion relates to the impairment of debt. The reasons why the original budget did not make adequate provision for these expenses should also be provided.
Accountability and transparency ought to be the cornerstones of sound municipal governance. Decisions that have a direct impact on the Municipality’s financial position warrant careful consideration, and should always prioritise the interests of ratepayers and residents.
The Freedom Front Plus will keep asking hard questions whenever public funds are at stake. Effective oversight requires financial decisions and budget adjustments to be thoroughly scrutinised to ensure that public funds are managed responsibly and that the Municipality fulfils its core responsibilities towards residents.
Mogale City residents deserve a municipality that manages their money sensibly, protects its infrastructure and prioritises sustainable service delivery. They also deserve an administration that is willing to provide a full account of important financial decisions.
The Freedom Front Plus remains committed to exercising rigorous oversight, enforcing accountability and putting residents’ interests first.
Good governance, financial discipline and transparency are essential for restoring confidence in the Municipality and securing a better future for Mogale City.
