uMngeni Municipality reveals that it “has money in the bank”

DURBAN - UMNGENI Municipality in the KwaZulu-Natal Midlands has turned the corner regarding its finances as the municipality has managed to collect millions in outstanding debt owed to it by consumers.

This was revealed by uMngeni mayor Chris Pappas as he tabled his budget for the 2022-2023 financial year earlier today.

The DA seized control of the council in Howick in the local government elections in November last year.

“To achieve all the plans in the IDP, we said that our first task would be to stabilise municipal finances. In November, we faced a bleak financial outlook. The municipality had been flagged as being at risk, and something drastic needed to happen before it was too late,” he said.

“It gives me great pleasure to say that we are no longer in crisis mode as the uMngeni Municipality and that the financial situation has improved significantly. Some highlights include:

R16 million collected from outstanding debtors

R5 million better month to month performance on revenue

No Eskom debt

Cash on hand has increased from R6 million to R9 million (0 months to 1.5 months)

We have grown the indigent register from 133 people to 1155 people

Grant funding has improved significantly, and most projects are now complete

Established an unauthorised, fruitless, and wasteful expenditure policy

Established a cost-containment policy.

“Today, we will be fully capacitating our Audit Committee as well as establishing a Municipal Financial Disciplinary Board. These structures aim to tackle past and future maladministration, corruption, and fraud,” said Pappas.

He said there were Special Investigating Unit cases, section 106 reports and other matters that they would be able to tackle through strengthening accountability mechanisms.

“We have and will continue to review our current contracts and ensure that the municipality is getting value for money and that no side deals are being made for the benefit of politicians or officials,” said Pappas.