Newcastle Mayor annual report meeting, reflects on Municipality’s successes & challenges

On Wednesday morning, 9 June 2021, Newcastle Mayor Cllr Dr Ntuthuko Mahlaba presented the 2019/2020 annual report, addressing an array of topics. 

Acting Municipal Manager Vish Govender explained, the purpose of the day was for the Newcastle Municipality to create a culture where residents and business owners could interact with local government and contribute to the running of the town. It also created a platform for the municipality to keep Newcastillians updated on various projects’ progress.

Cllr Dr Mahlaba highlighted the significance of the community and government working together—stating this would contribute to the municipality accomplishing its mission of Newcastle, becoming a flourishing and resilient community by 2035.

However, he noted numerous issues needed to be resolved, with the municipality having to make difficult beneficial decisions. 

These decisions include cutting costs such as overtime and cellphone allowances, resulting in the municipality saving around R5 million.

Moreover, Govender explained, a reduction in the overall expenditure over the past three years had been achieved—decreasing by R26 081 709. However, he also pointed out, the 2% increase in revenue from 2019 to 2020 was below the inflation rate of 4.6% in South Africa. This, according to the Acting MM, indicates the municipality’s revenue performance was running at a level not adequate to cover the general increase in prices of goods and services, despite most tariffs being increased by 5% for rates and service charges.

Additionally, the Mayor added, “We have also committed ourselves to fighting corruption and have had some success.” He says this includes a municipal official facing charges after using the municipality to steal millions of Rands, of which R3 million has been recovered. Further stating, investigations are currently underway regarding other acts of corruption.

Cllr Dr Mahlaba notes that one of the biggest challenges currently faced is non-payment by numerous individuals. Adding to this, Govender says, there were numerous challenges such as the collection of debt in Newcastle East, a low payment factor due to key businesses closing down, and a low payment factor resulting from the pandemic’s impact on the economy. 

He also pointed out that another challenge was the cleansing of debtors and indigents as an ongoing process.

On a positive note, Govender explained that interventions were being implemented to address these challenges. These include the appointment of a debt collector, writing off the irrecoverable debt and reviewing the monthly earnings of indigent residents who, as he stated, decreased from 12 166 in the 2017/2018 year to 8 952 during the 2019/2020 year.

Furthermore, it was also noted with a sense of pride that Newcastle Municipality has paid R72 million to its Eskom debt, inherited from previous administrations. While municipal officials admitted that a lot more work was required to bring about positive change, the municipality felt it was taking steps in the right direction.

This can be seen through the 139 acting municipal appointments that were reviewed and are now being put to an end to save more costs and ensure the necessary departments are held accountable for their actions.

Additionally, Newcastle Municipality has the most improved Integrated Development Planning (IDP) in KZN for the 2020/2021 financial year.

What are your thoughts? Do you feel there is a glimmer of hope for the Newcastle Municipality?

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