DURBAN - THE embattled Msunduzi municipality plans to spend about R200 million more in the next six months on hiring external experts like consultants.
During a Finance meeting on Budget Adjustments, it revealed that another R182m must be budgeted for the next six months to fund contractual services.These include consultants and security services.
The municipality had initially budgeted about R475m to spend on contractual services for this financial year. This takes the total budget for this service from R475m to about R658m.
The increase irked some councillors who said the council should rather be focusing on hiring its own competent staff.
They equated such spending to denying the people of Pietermaritzburg desperately needed employment opportunities.
On the operational revenue side, there was an increase of R65,2m additional grant funding which has been received from the provincial government departments, Human Settlement, Economic Development, Tourism and Environmental Affairs, and Treasury.
The adjusted budget shows it will move for the R5.8 billion projected at the start of the financial year, to about R6bn.
DA councillor Sibongiseni Majola said the adjusted budget was a serious concern. It does not recognise the deep financial trouble the municipality is in.
“Nothing has changed from what we projected from the beginning of the year. The only thing new about the adjustment is that we have received grants of R62m.
“We are heading for deeper financial trouble. For instance, a few years ago we managed to collect about R17m of violation of by-laws, yet this financial year we are only budgeting to collect a lousy R1m.
“There are many transgressions that take place in this city, that includes traffic violations and illegal dumping. By setting our targets so low, we are encouraging these transgressions. This is a clear indication our budget is not aggressive enough when it comes to revenue collection,” he said.
“One of the concerning items is the line item which shows that there has been an increase in the expenditure of R5m on an item called ’other materials’. We do not know what that is. You cannot tell councillors about an increase of R5m but not explain what the money will be spent on,” he said .
Msunduzi mayor Mzimkhulu Thebolla said the adjusted budget was still going to be tabled and discussed by the executive committee.
“The issue of consultants is still concerning. It's one of our cost drivers and that is why we are busy hiring professional people in the different business units so they can do the work.
“We understand that we cannot completely eliminate the use of consultants as there are some areas where we cannot do without them,” he said.
The Mercury