The Kimberley Prospector

Kimberley

R275 Million Loss in Revenue: Plunging Service Delivery as Sol Plaatje Grapples with Financial Mismanagement

Editorial Staff

The Sol Plaatje Local Municipality’s (SPLM) annual performance report for 2023 exposes a year marked by stagnation and financial mismanagement, significantly hindering progress on critical service delivery challenges.

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Funds allocated to tackle these challenges have been misused to an extent where a portion must now be surrendered to the national coffers. Alarming warnings from the national Department of Mineral Resources & Energy in December 2023 highlight the municipality’s failure to spend allocated funds and implement proper project management processes. This not only compromises essential service improvements but also reflects a broader issue of financial irresponsibility.

The municipality, heavily reliant on grants, is failing to utilize funds meant to enhance services for residents. Equally distressing is the negligence in safeguarding revenue streams, as electricity losses soar to 29%, and water losses reach an alarming 64%, surpassing national benchmarks. The estimated loss of over R275.578 million in revenue further underscores the magnitude of the issue. The Auditor-General’s inability to verify the extent of losses and identification of unbilled debtor accounts for electricity and water sales add another layer of concern.

A concerning revelation emerges as the areas of qualification in the recent audit surge from 6 to 8, indicating pervasive mismanagement across all facets of municipal administration. Urgent steps are needed to address project management inefficiencies, with consequences for officials failing to fulfill their duties.

Despite efforts from the premier and the provincial Department of CoGHSTA, SPLM remains entrenched in its challenges. As residents grapple with the deteriorating situation, the only recourse to rescue Kimberley and restore its former vibrancy is for citizens to exercise their right to vote.

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