eThekwini Municipality dispels bankruptcy claims, reassures residents of service delivery

The eThekwini Municipality has assured residents that it is not facing bankruptcy and continues to maintain sound financial health, even amid a challenging national economic climate. 

Services across various departments remain operational and are being delivered in alignment with the approved budget for the 2024/25 financial year.

The City has recently become aware of the circulation of false information on WhatsApp and other media platforms, alleging that several municipal departments are unable to provide services due to a so-called “bleak financial situation.” 

These claims have been dismissed by City Manager Musa Mbhele, who described them as a smear campaign intended to undermine the Municipality’s reputation.

Departments named in the allegations include Water and Sanitation, Parks, Recreation and Cemeteries, Electricity, and Cleansing and Solid Waste. Mbhele clarified that these baseless claims are not reflective of the Municipality's operations or financial standing.

Mbhele explained that the City is currently conducting its mid-term performance review as mandated by the Municipal Finance Management Act (MFMA). 

This review has highlighted certain expenditure spikes caused by unforeseen circumstances such as adverse weather conditions. 

For example, the recent heatwave affected numerous electricity substations, while persistent heavy rains have strained water infrastructure. 

These challenges necessitated additional resources to ensure continued service delivery.

The mid-term review will inform an adjustment budget to be presented at the February Council meeting. 

Mbhele emphasised that this is a routine process in municipal financial management and aligns with the provisions of the MFMA. 

The Municipality undertook a similar adjustment in the previous financial year to address operational complexities.

Contrary to claims of service delivery failures, the Municipality continues to perform essential functions.

The Water Network Branch remains active, deploying internal and contracted plumbers to promptly address burst pipes and leaks, thereby conserving water.

Grass-cutting services and verge maintenance are proceeding as per the annual grass-cutting cycle.

Mbhele also highlighted significant improvements in the City's planning processes during its Integrated Development Plan. 

These enhancements have ensured greater accuracy and realism in budgeting, reducing reliance on virements and adjustment budgets.

“It is important that the public is not misled into believing that the Municipality is bankrupt,” stated Mbhele. 

He further encouraged residents to report instances where service delivery falls short of expectations. 

IOL