The proposed Emfuleni recovery plan will not fix the municipality.
OUTA needs YOUR help to address the issue.
This is an opportunity for you to raise your voice to stop this flawed Financial Recovery Plan by completing the form below. (This form will submit your public comment directly to Treasury).
OUTA commented on the very flawed Financial Recovery Plan for Emfuleni (The plan that should fix the Municipality) and requested an extension of the time period for proper public comment that grants residents the opportunity to voice their concerns regarding the plan as to ensure that this plan will bring about the needed change in the municipality.
The closing date for comment is now 28 November 2018. Please see the form below to add your comment or to endorse OUTA’s input to the Emfuleni turnaround strategy.
OUTA regards the proposed Financial Recovery Plan as a document with a lot of information but no plan.
Emfuleni municipality needs a systematic project plan. This plan should have specific actions and milestones focussed on fixing the municipality and settling its debts. But there is no proper project management plan and apparently no project managers.
Please use this comment box below to submit your comments to Treasury before 28 November 2018! (see content below as an example for comments that OUTA lodges or click here to see OUTA’s submitted comments on behalf of its supporters)
- The plan proposes borrowing R900m but doesn’t provide a funding model or explain how this would be spent.
- It says municipal infrastructure is beyond restoration but does not provide a strategy for addressing this.
- It does not adequately address the municipality’s outstanding debts.
- It does not address the staffing costs and vacancy crisis.
- It does not address the inadequate collection rate and poor billing system.
- It was not based on audited financial statements.
- Compile a systematic project plan with clear deliverables and timelines.
- Dissolve the council and elect a new one, which should develop a new Integrated
- Development Plan and realistic budget.
- External funding from National Treasury is needed rather than more unaffordable loans.
- Non-essential assets should be sold to help pay debts.
- Emfuleni debts to Eskom and Rand Water which are older than 90 days should be written off.
- All consumers of Emfuleni services must have meters, the billing system must have integrity and all consumers should pay their current accounts within 15 days.
Staffing needs reassessing – particularly in the mayor’s office which has 60 staff – with a view to an affordable staff funded by reasonably projected revenue.
- Discharge all employees except those affordable in terms of reasonably projected revenues as set out in the approved financial recovery plan.
- Emfuleni must reduce costs;
- There is a massive deficit in the Emfuleni budget. The 54% debtors collection rate means that Emfuleni fails to collect R3bn of its R5.5bn budget.consider which debts are realistically collectable, look at how to collect on these and plan realistic collections on future billing. This collection issue goes back more than 10 years. The financial statements report a collection rate of 93% but they report on the collection of what they are billing per month but the danger exists that they are ignoring historical debt. If Emfuleni was really collecting the R5bn it has budgeted, it wouldn’t have any financial problems.
- Merely placing the municipality under administration won’t help as it will depend on the people who are the main cause of the problem to fix it.
- The plan is not sufficient as it does not have a clear execution strategy;
- A significant omission exists in the funding model which is essential in securing the required Funding and Strategy on obtaining the skills to fill the critical vacancies; There is no skilled project management planning and execution;
- The plan does not adequately address the municipality’s outstanding debt;
- The exorbitant salaries paid to current staff;
- The extent of the infrastructure backlog is not addressed;
- The incompleteness of the financial statements are not addressed;
- The mayoral office has allegedly 72 positions of which 60 are filled. There should not be more than 16 people, including the MMCs and their administrators;
OUTA is a proudly South African non-profit civil action organisation, comprising of and supported by individuals and businesses who are passionate about improving the prosperity of their community and our nation.
Join the OUTA Emfuleni branch today to support this and other actions to fix the municipality. SMS “Emfuleni” to 35005 to join the branch and OUTA will call you or click on here to sign up quickly.