{"id":47153,"date":"2024-05-16T06:08:36","date_gmt":"2024-05-16T04:08:36","guid":{"rendered":"https:\/\/novanews.co.za\/noordkaapbulletin\/citys-decline-must-end-20240514-2\/"},"modified":"2025-03-21T16:28:34","modified_gmt":"2025-03-21T14:28:34","slug":"citys-decline-must-end-20240514-2","status":"publish","type":"post","link":"https:\/\/novanews.co.za\/noordkaapbulletin\/citys-decline-must-end-20240514-2\/","title":{"rendered":"\u2018City\u2019s decline must end\u2019"},"content":{"rendered":"\n<p>Officials of the Sol Plaatje Municipality in Kimberley must stop \u201ctalk, talk, talk, and rather do, do, do to turn around the municipality and the city\u201d. <\/p>\n\n\n\n<p>This was one of the requests from the Kimberley Large Business Forum (KLBF), which has requested the municipality to urgently amend its 2024-\u201925 to 2026-\u201927 draft annual budget to promote growth in the business sector and halt the noticeable and detrimental decline of the city.<\/p>\n\n\n\n<p>The KLBF comprises 12 large businesses and the Sol Plaatje University (SPU), and it confirmed its \u201cfirm support for the substantial proposals\u201d for the Integrated Development Plan (IDP), Strategic Economic Development Plan, Bulk Funding for Infrastructure, central business district clean-up and upgrades, parks clean-up and greening, as well as repairs and recommission of the Homevale and Greenpoint Wastewater Treatment Plants (WTP).<\/p>\n\n\n\n<p>However, the KLBF claims the proposed budget is \u201ca generic hand-me-down budget used for the past two decades\u201d. The KLBF requests mayor Kagisho Sonyoni to review the \u201cflawed and inappropriate\u201d budget before final approval. <\/p>\n\n\n\n<p>The KLBF claims municipal costs to the commercial and industrial sector has caused a steady decline in size and volume for 20 years and longer, resulting in decreased job opportunities and job losses. <\/p>\n\n\n\n<p>Primary reasons for the decline are high electricity tariffs, poor service maintenance and repairs to infrastructure (only 15% is spent on maintenance), employee and councillor related costs (35%), the municipality\u2019s intolerable debtors (accounts receivable) of R3,7 billion (which if not recovered will be a bad debt expense), and electricity and water losses of 40% to 60%.<\/p>\n\n\n\n<p>A major concern is the commercial and industrial electricity tariff with a markup of up to 300% on the rate the municipality purchases bulk electricity from Eskom for commercial industrial customers. It is the highest commercial industrial rates in South African against the average of 14 competitive industrialised cities. <\/p>\n\n\n\n<p>\u201cThe excessive effective rate of between R3,50 and R6,50 exclusive of VAT, per kWh is tantamount of being unconstitutional and unsustainable,\u201d the KLBF states. <\/p>\n\n\n\n<p>It suggests the implementation of a Kimberley Special Economic Zone with benefits and financial attractions to attract new businesses and promote existing business to grow bigger and to stay in Kimberley. The KLBF claims the high commercial and industrial electricity tariffs will be the death knell for Kimberley businesses. <\/p>\n\n\n\n<p>Ekapa Mining is the largest employer in the city. Its Kimberley mines will be worked out in 25 years, ending 180 years of continuous diamond mining. The remaining 25 years is enough time to allow for other businesses to grow and prosper to fill the void.<\/p>\n\n\n\n<p>The municipality is losing hundreds of millions of rands in income due to electricity losses of 40% through illegal connections or bypass cables. <\/p>\n\n\n\n<p>The debt to Eskom alone is R1 billion. The KLBF suggests that a dramatic debt collection programme be implemented to recover a mini\u00admum of 25% of the debt per year over a few years, and uncoverable debt written of. This income will \u201ceasily eradicate\u201d all the potholes and increase road paved area coverage in low-income areas.<\/p>\n\n\n\n<p>Salaries of R820 million are 33% of the total budget \u2013 considerably higher than the average of 25% of related municipalities. There are far too few visible traffic officers, result\u00ading in increasing traffic violations and danger to motorists, and a major shortage of skilled engineering and maintenance personnel. <\/p>\n\n\n\n<p>Also, the National Treasury, in its latest review report, stated the municipality\u2019s cash coverage is below the norm. <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Visit <span id=\"U10209340614803E\" style=\"font-family:'Utopia Std';font-weight:normal;font-style:italic;\">NoordkaapBulletin <\/span>on news24.com under \u201cPublications\u201d for the full story. <\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Officials of the Sol Plaatje Municipality in Kimberley must stop \u201ctalk, talk, talk, and rather do, do, do to turn around the municipality and the 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