18 Jul 2019

The Finance and general purpose committee chairperson in the North East District Council (NEDC) Mr Dumani Kelepi has pleaded with the council to consider using cheaper methods of payment to avoid high bank charges.

Presenting the 2020/21 budget estimates at a special full council meeting, Councillor Kelepi stated that usage of cheques contributed to high bank charges adding that current bank charges were budgeted for P960 000 which he said was huge.

The chairperson indicated that the proposed budget had increased from P165 million that was allocated in 2019/20 to P189 million.

He said the revenue support grant represented 96 per cent of the total estimated income while the  councils own source of revenue represented only four per cent.

Mr Kelepi revealed that overall projected income decreased from P8.8 million to P8. 2 million which reflected a five per cent decline.

This he said was due to the fact that council had not come up with any new source of revenue. He however stated that their intention was to develop the park during the year 2020/21 so that it could be budgeted as a new source during the year 2021/22.

Councillor Kelepi highlighted that maintenance of grounds and buildings was given priority in the coming financial year followed by maintenance of roads.

He further indicated that relief for destitute persons, food and accommodation and provision of school stationery and furniture would also be given priority.

Councillor Kelepi stated that the department of social and community development had the largest proposed budget of P34 million which translated to 18 per cent of the recurrent budget as opposed to 2019/20 budget of P28.5 million.

He said the budget increased by 18 per cent from previous budget mainly because of increase in the budget for food and accommodation as well as increase of beneficiaries under social welfare programme and VDC allowances.

The chairperson stated that the department of civil and mechanical the second largest proposed share of P32 million or 17 per cent which was an increase from P27.8 million.

This, he said covered improvement of roads, road markings, maintenance of potholes and road edges, installation of road signs and construction of culverts amongst others. Councillor Kelepi stated that education would receive the third largest share of P25.1 million or 13 per cent which was a 17.9 per cent increase mostly because of the opening of Moroka hostel.

He indicated that the fourth largest share would go to architecture and buildings at about P20 million which showed an increase of 23 per cent from the previous year.

The chairperson called on NEDC team to come up with stringent measures of monitoring expenditures in order to save funds.

He commended the transport committee that was instituted in January 2019 saying it had produced results in ensuring reduction in subsistence and fuel costs due to sharing of resources. Ends