File
The Democratic Alliance in Nelson Mandela Bay says the Municipality runs the risk of forfeiting hundreds of millions of rand to the National Treasury due to an inability to spend its budget.
The party's mayoral candidate in the Metro, Retief Odendaal says over the last two years, the Municipality was forced to surrender R500 million to National Treasury.
He says capital expenditure for the 2021/22 financial year stood at only 67%, as the Metro only managed to spend R1,046 billion of its R1,562 billion capital budget.
Odendaal says during the 2020/21 financial year, the Metro forfeited R319,6 million in grant funding and R188 million in the previous year.
He says poor project management, as well as poor financial controls, are to blame for the record-underspending during the past year.
Odendaal says adding to these financial woes, the collection rate has dropped to 75,67%, and if not addressed immediately, it may lead to cashflow problems in future financial years.
