THE DA in Nelson Mandela Bay Metro has formulated an economic relief proposal for residents and businesses in the metro that have been suffering under the nationwide lockdown as a result of the Covid-19 pandemic.
In a statement, the party proposed that the metro invokes Section 29(1) of the Municipal Finance Management Act.
This states that the mayor may, in the case of emergency or in exceptional circumstances, authorise unforeseeable and unavoidable expenditure for which no provision was made in an approved budget.
According to the statement, this strategy should be used to move money away from capital projects that won’t be finished before the end of the financial year due to the lockdown, provided such projects are not critical to basic services.
The party also suggested that provision be made for relief of rates and water and sanitation charges where a need for this exists.
“We do not believe that there should be blanket relief for all, as this will have a significant negative impact on the municipality’s cash flow.
“Our suggestion is that those who can show that their incomes have been adversely affected by the Covid-19 lockdown crisis should be able to apply for relief.”
The statement also read that only 22,89% of the metro’s capital budgets was spent by January 2020. Some of these funds could be re-prioritised from infrastructure projects that have been significantly delayed due to the lockdown period.
“Relief for rates and municipal services should be considered based on need, and means tests should help to identify those households, individuals and businesses whose circumstances have changed due to the coronavirus pandemic.
“These would include ATTP customers, residential property owners in distress and small and medium businesses.
“Before any proposals can be considered, the chief financial officer (CFO) needs to provide a detailed overview of the spending and financial position of the metro. We have reliable information that the current collection rate is 83% – which represents a R170 million shortfall. We also expect a shortfall in electricity revenue.”
The statement mentioned that the budget virement policy could be applied and funds could then be moved within the EDTA to assist SMMEs. It emphasised that the party would scrutinise any budget proposals to ensure that proposed tariff increases for the 2020/21 financial year are kept low, as they do not believe relief provided this year should be recouped next year.
“All parties should work together, put party politicking aside, embrace innovation and be prepared to make hard and important decisions for the sake of the metro and all its residents.”
MMC for budget and treasury in Nelson Mandela Bay, Mkhuseli Mtsila, said that the NMBM is seriously considering this proposal. “That is exactly what we are planning to do.
“We are considering letting businesses and residents that have been severely affected by the lockdown, apply for this,” he said.
Mtsila added that there were many things to take into account before the payment holiday, which would probably be for three months, could be approved.
“We will need to see bank statements that prove how residents and businesses have been affected by the lockdown.
“Currently, the municipality’s collection rate is also not very good and we don’t want to do anything that could jeopardise that any further.”
He said that if the payment holiday was not approved, residents should not worry about their accounts being blocked. The metro would then also consider giving long-time extension on payments due.
“The outcome of the proposal will be communicated in due time,” he said.
