Addressing a full council session on Monday Ramotswa District Council chairperson, Mr Matlhomola Motsage said the proposed formation of the Special Purpose Vehicle (SPV) was under the auspices of the council’s finance and investment committee.

He said the SPV was established under Section 11(4) of the Local Government Act 2012 which granted councils the authority to engage in transactions and undertake activities necessary for the proper discharge of their responsibilities under the act or any other relevant legislation.

“This new legal framework opens doors to strategic partnerships and asset acquisition, enabling us to develop investment frameworks that align with our governance objectives. By harnessing these powers, we can create business entities that widen our income sources and enhance our financial sustainability. However, as we embark on this journey, we must approach it with precaution and responsibility,” he said.

Councilor Motsage said while the creation of these SPV presented exciting opportunities, it was essential to establish appropriate regulations to safeguard economic integrity.

“We must further ensure that our ventures are not only profitable but also transparent to the communities we serve. The establishment of the SPV under the finance committee is an opportunity for us to innovate and expand our financial horizons. Let us embrace this initiative with a spirit of collaboration and a commitment to responsible governance,” he added.

Mr Motsage announced that the council’s mission to the renaming of Ramotswa District to Gamalete District had been officially approved by the Ministry of Local Government and Traditional Affairs.

He said it was a historic milestone that honoured heritage and identity while positioning the council for a renewed chapter of growth, inclusivity and unity.

“As you may be aware, this change will necessitate rebranding, which entails cost implications. Therefore, given our current financial circumstances, we will continue using our existing branding for the time being. The rebranding process will be implemented in phases as and when the council secures the necessary resources to fund the required materials,” he said.

Regarding the financial status, Mr Motsage said it was disturbing that the council continued to record underrated gains in revenue collection from its own sources of revenue.

He said out of the annual budget of over P11million of own sources of revenue, the council had planned to collect over P3 million to date but only managed P1.3 million which translated to 36 per cent of the source of revenue budget.

“This calls for a robust approach to our revenue collection because own source of revenue forms part of our overall budget, therefore inefficient revenue collection can lead to cash flow problems and eventually affect our service delivery. Let me urge you to play an advocacy role in encouraging the community to come forth and pay for all services requiring payments and arrears through the available public access platforms,” he said.

He explained that due to the declining fiscus, the council had received 75 per cent of the second quarter Revenue Support Grant (RSG) amounting to over P27 million instead of the expected P37 million which had impacted negatively on the day-to-day running of services since the council decided to prioritise procurement until the finances were stable.

He added that Ramotswa internal roads project remained a key priority for infrastructure development agenda.

Mr Motsage said funds for 2025/26 amounting to over P22 million had been approved and were meant for 87 labour-intensive works that had been ongoing since the beginning of the year as well as 14 minor construction and maintenance projects.

He explained the district quota for Ipelegeng beneficiaries had been reverted to 1 593 from the initial 2 163 being a reduction of 570 which had been an increase to mitigate the adverse effects of drought.

Despite the economic challenges government remaines resolute that the programme will continue to cushion vulnerable members of the community in Ga-Malete, Mr Matsage said. ENDS