Paying more, getting nothing — the Nelson Mandela Bay ward whose capital budget was slashed to zero

Daily Maverick

a day ago

'I have been a ward councillor for 25 years and this has never happened to me,' said DA caucus chief whip Gustav Rautenbach.
The capital budget for Lorraine and its surrounding suburbs — which makes up Ward 8 — has been slashed from R1.2-million to zero in the draft budget scheduled for discussion and a vote on Thursday.
It is one of four DA-led wards in the metro that have been allocated no capital budget — and there is no mechanism for residents to appeal against the decision. The DA caucus chief whip, Gustav Rautenbach, said on Tuesday that there were rumours that the ward might still receive about R500,000 — but this had not been confirmed.
Ratepayers are facing increases of 5% for property rates, 5.50% for water, 5.50% for sanitation and 6% for refuse collection, as well as a 12.8% increase in electricity prices if it is approved by the National Energy Regulator of SA.
Last year, Ward 8 used its capital allocation to tar and repair part of Circular Drive, a major arterial road.
But for the next year, Rautenbach said, there would be no capital allocation.
'It is very problematic,' he said, 'because this means that the Integrated Development Plan and the budget are not talking to each other.
'I think it is important to note that this doesn't mean that no potholes will be filled or no sewage spills will be fixed,' he said. 'That would come from the operational budget.'
However, it does mean that no big new projects will be scheduled for the ward in 2025.
'We contribute millions to the municipal treasury,' said Rautenbach. 'Parts of this ward are old and must be replaced. How is that fair?'
Lorraine has 122 townhouse complexes with around 3,000 houses, in addition to freestanding homes. 'I would say there are about 21,000 residents who live here,' said Rautenbach.
Two of the main roads in the area, Dijon Road and Luneville Road, require major work.
'We don't even have an office,' said Rautenbach. 'We don't have a community hall, and we have no recreational facilities.'
He said they had received only R100,000 for a humanitarian fund, like all other wards in the metro.
Short-sighted
'This is very short-sighted from the municipality,' he said. 'Because it should be clear that the only direction in which Gqeberha can grow is in this westerly direction.
'I am very upset. Residents are making their contributions, and they are getting nothing.'
Three other wards are facing the same outcome.
However, Ward 41, represented by Luyanda Lawu, the mayoral committee member for safety and security, is set to receive about R48-million in the upcoming budget and R42-million and R37-million, respectively, for the next two financial years.
The ward has several informal settlements that need major infrastructure projects.
Last week, the budget was once again 'noted' in the council as Nelson Mandela Bay Executive Mayor Babalwa Lobishe said negotiations around ward allocations were ongoing.
According to the budget document, the metro faces 'significant challenges' with the new budget, including:
A declining collection rate;
The poor financial performance of the electricity service, which now operates at a huge deficit;
Escalating electricity and water losses that are at unacceptably high levels;
Allocation of the required operating budget provision for newly created infrastructure and facilities, with a consequential impact on the level of property rates and tariff increases;
Allocation of the required budget provision for the rehabilitation and maintenance of infrastructure;
Underfunded mandates, such as the Library Services, negatively affect the municipality's budget; and
Financial commitments emanating from previous council decisions, such as the insourcing of security guards, which become an ongoing cost on the municipality's payroll. DM