“… those who pay for services, get … services. On the other hand, those who decided to withdraw their payment of services will be drawn to the discussion table to deal with this noble responsibility …”

This statement came from the mayor of the Makhado Municipality, Cllr David Mutavhatsindi, during his State-of-the-Municipality address a fortnight ago. The 2012/13 budget that the Council tabled held very few surprises, but there were glimpses that the municipality will take a stronger stance against non-payment for services and expect more accountability.

The tariff increases for the next financial year were, as expected, moderate, with only the electricity rates increasing by double digits with 11.03%. For the following year, a 16,93% rise in electricity tariffs is on the cards, while the price hike for 2014/15 is an alarming 22,23%. The charges for water, refuse removal, sewerage and sundries will rise by 5,9%.

The Council opted to allow a mere 5% increase in salaries, as guided by the National Treasury. This may be an opportunistic move, as the various labour unions are sure to put up a fight in this regard. As is, the salary bill amounts to almost R185 million, which includes new positions to be filled during the financial year. “The cost of overtime has been drastically reduced in order to redirect the funds to service delivery projects,” the mayor said.

In the past years, the Makhado Municipality became more reliant on grants and loans and this year is no exception. Apart from the municipal infrastructure grant (MIG) of R67,4 million, Council will also rely on a local government financial management grant (R1,5 million), an integrated national electrification programme grant (R7 million) and a municipal systems improvement grant (R800 000) to make ends meet. The equitable share grant amounts to R235,43 million, which brings the total grants budgeted for to just over R312 million.

Mayor Mutavhatsindi emphasized the necessity to upgrade and maintain the region’s electricity infrastructure. This ties in with other responsibilities such as the provision of clean water. “If [the electricity substations are] not upgraded, the completion of the Nandoni project cannot bring anyf relief as the pumping station will need more power, which is currently not there,” he said. To assist with the proposed projects, Council is in the process of applying for a R100 million loan from the Development Bank of SA.

During his budget speech, the mayor made it very clear that service delivery is not what it should be. He referred to a customer satisfaction study conducted by the Department of Cooperative Governance, Human Settlements and Traditional Affairs. This study revealed that 32% of respondents described the level of service provided by the Makhado Municipality as poor. A further 41,4% were neither satisfied nor totally disappointed with the service, with only 26,6% describing service delivery as good.

A clean audit seems to be an ideal which needs to be attained within the next two year. “The time for irregular, wasteful and fruitless expenditure must be history which should not repeat itself,” said Mayor Mutavhatsindi. He referred to the resolutions taken at a recent provincial lekgotla and said these guidelines would be used when filling the vacancies in top management and critical administrative posts. “We shall fill all posts with competent, skilled and qualified personnel to ensure improvement on service delivery initiatives and good financial management.”

In the previous financial year, the auditor general’s report showed up R821 257 as irregular expenditure, as well as a further R34 735 described as fruitless expenditure. The auditor general once again issued a disclaimer and had several questions regarding the accounts of the municipality.

During his address a fortnight ago, the mayor also took a swipe at irresponsible labour unions. He urged managers to treat workers with respect, but also warned that “Equally gone are those days where union leaders will dictate what should happen in the municipality.”

Infrastructure development and maintenance received a fair amount of the budget “cake”, with roads being at the front of the queue. A sum of R12 million has been set aside to rehabilitate the Eltivillas CBD, with a further R6 million earmarked for completing phase 2 of the street resurfacing project in Eltivillas Ext 1. Streets will also be tarred in Tshikota (R7 million) and Waterval (R6 million). Council plans to rehabilitate several access roads, such as the one to Mphaila (R5 million), the Piesanghoek to Khunda road (R6,6 million), the Sereni to Mashamba Post Office road (R3,5 million) and the Tshivulana to Tshilaphala Ring Road (R8 million).

Several projects within various villages also received the green light. In Tshakhuma, R4,5 million is budgeted for landscaping and a street-lights project. In Waterval and Dzanani, halls will be built at an estimated cost of R3 million each.

Electricity infrastructure will, as has become customary, claim a large part of the budget. Mayor Mutavhatsindi mentioned that Council had completed 1 882 household connections in 10 villages in the past year . This process will continue and a further R13,29 million will be invested in the electricity-supply programme. “Eskom has budgeted R24,3 million to connect households in 10 villages, which include Midoroni, Tshivhuyuni, Malonga Extension, Makhakhi, Shirley and Misevhe A and C,” said the mayor.

What came as a bit of a surprise for many was the attention that sport clubs and recreational facilities received in the budget. A sum of R4 million has been set aside to upgrade sports facilities. There was also a subtle message to sport clubs that do not encourage mass participation when the mayor announced that existing lease agreements for sporting facilities will be reviewed. “We are concerned that sports and community facilities continue to be under-utilised, vandalised and damaged by community members,” he said.

An additional R800 000 has been set aside to support tournaments and events. The sponsorship for the Kremetart Cycle Race has increased from R9 700 to R40 000 next year, whereas the Hanglip 54 golf tournament will receive R40 000 next year instead of R16 000. The Makhado Local Football Association will receive R60 000 (previously R18 500), the Land of Legend Marathon's organisers will get R30 000 and R100 000 will go towards the Mapungubwe Games. The organisers of this year’s indigenous games will receive R76 000.

The Makhado Municipality may well be on the road to a “greener” status. An additional R20 million has been budgeted by the Vhembe District Municipality for the completion of the Makhado Waste Water Treatment Works. A new landfill site will be developed in Makhado at a cost of around R5 million. “We shall be closing the existing landfill site in Makhado and an amount of R1,2 million has been budgeted [for this project],” the mayor said.

The mayor clearly had an axe to grind with people who demarcate sites without the involvement and approval of the municipality. “These tendencies must stop as they can lead to a banana municipality where everyone will do as he/she wishes,” he said. The mayor highlighted some of the demarcation projects currently underway and stressed that the municipality has a responsibility to ensure that effective spatial planning and development takes place.

The challenge of fighting poverty in all areas also received some attention during the mayor’s address. “Makhado Municipality has 123 837 poor households, of which 76 073 are receiving free basic services,” he said and added that 18 859 customers had submitted applications for the indigent support programme. In total, 15 529 customers are collecting free basic services tokens.

To enhance community participation, Council opted to support and capacitate the ward committees actively. An amount of R4,8 million has been budgeted to coordinate and support these committees in organising meetings.