The Executive Mayor Budget Speech - Moqhaka Local ...

The Executive Mayor Budget Speech
Honourable Speaker
The Council Whip
Leaders of political parties
Members of the Mayoral Committee
Honourable Members of this Council
The Acting Municipal Manager
Directors and Managers
Ladies and gentlemen
Madam speaker allow me to recognise the presence of
1…
Honourable Speaker, we have reached the third wave of covid19 pandemic, the Delta Variant
has been devastating. Speaker I would like to urge the residents of Moqhaka to be
responsible and adhere to the health protocol’s. Since the declaration of the state of disaster
by the President of South Africa in terms of the Disaster Management Act, much has been
done to flatten the curve of this pandemic. The country has started with Vaccinations and I
urge the residents Moqhaka to assist the elderly to register and to get them vaccinated. This
is a war that we can only win by working together and get as many vaccinated as soon as
possible. We take note of the fears of residence, we appreciate their concerns and we note
that there are many conspiracy theories around the vaccinations, Madam speaker you are
living testimony that indeed the vaccine is safe.
Our municipality has recorded 15 New positive cases as of 29th June 2021 with a total
number of 4796, Kroonstad sitting at 4182, Viljoenskroon 508, Steynsrus 106. it’s not all
doom and gloom our recovery rate at 89,9% our district Fezile Dabi has 15509 Positive cases
with 88,5% recoveries thus far.
We know and understand that the after effects of this pandemic will remain with us for
several years to come, we will emerge victorious.
Speaker, the pandemic has severely disrupted the normal functioning of the people across
the globe and communities around the world were forced to stay at home, women were and
are at heightened risk of domestic violence, intimate violence, child abuse and other forms
of sexual and gender based violence. Statistics show that almost every three hours a woman
is killed in South Africa. Half of all women murder victims are Killed by men with whom they
had a close relationship. On the 16 December 2020 we walked against gender based violence,
remembering Boipelo Sesele, Nonki Smous and many others. We need to work together to
curb this pandemic and call such men what they are cowards.

Madam speaker, there is another evil that has increased by leaps and bounds in places like
pubs and taverns where a big number of young people are freely using different types of
drugs, nowadays the youth is being exposed to drugs more freely and openly, at times our
young girls are being drugged and taken advantaged off. Drug addicts cannot do without
drugs for a long time and become immoral and commit crimes of various types in order to fix
their addictions, moral regeneration should be enforced and highlighted in order for our
youth to be made aware of the dangers of drug addiction. Rehabilitation centres should be
establish by NPOs to provide medical treatment for the addicts, we must not forget that drug
addicts need our sympathy and we must win them back and get them back on the right track
in society.
We hosted Free Health Services for the community of Moakeng last December, Patients were
assisted with a medical check-up and free medication, pregnant women got a free sonar by
gynaecologist Dr Mosebi. We intent to enhance this service and roll it out to all three towns,
our partnership with O Health and         B Kind Foundation will continue and we will urge
businesses in Moqhaka to join this initiative as we seek to have a balance healthy life for our
residents.
Honourable Speaker, the current term of administration that is about to come to an end has
been very devastating, more especially regarding the institutional memory loss. Honourable
Speaker we have so far lost five former Mayors during this term, we have lost Mr Jihad
Mohapi, Tony Khoury, Lucky Phooko, Justice Mareka and lately Ntate Solomon Lebona and
may their soul rest in eternal peace.
Honourable Speaker I stand before you just few weeks after the country has just
commemorated, the 45TH Anniversary of June 16, 1976 Soweto student uprising. When
young black people of this land protested against the imposition of Afrikaans as the only
medium of instruction by the Apartheid regime.
It is through the 1976 Youth struggle and many other liberation struggles fought by our
forebears, that South Africa ultimately attained political freedom. Speaker it is worth noting
that political freedom without economic freedom is incomplete, and we shall at all times
advance the economic emancipation.
Honourable Members allow me to table the draft IDP / Budget as required by section 23 (1),
26 and 34 of the municipal System Act for the financial year 2021/22. This draft strategic
plan supports the municipality’s ability to meet its constitutional obligation which provide
democratic and accountable government for communities, provision for basic services,
promoting socio-economic development, promoting a safe and healthy environment and
encouraging the involvement of communities in matters of local government. The draft
intergraded development plan provides an intergraded framework that ensures the
municipality’s resources are
    Utilised efficiently and effectively
    Alleviate poverty and inequality

 Provide basic services and
    Promote sustainable development
To achieve this, we had proposed to increase the tariffs as follows
Rates of water will increase by 6.3% this increase is mainly for consistent and efficient water
supply in areas like Steynsrus. The residents of Steynsrus and Matlwangtlwang can attest to
the fact that we are currently constructing an 1Ml and 2Ml water reservoirs and the business
plans for the construction of the water catchment dam (weir) are at the advanced stage. The
current weir is to small and this new catchment will assist greatly.
Honourable Speaker in our quest to resolve frequent water interruptions in Maokeng
especially on the high laying areas like Phomolong, LTA and other areas. We have started
with negotiations with the Department of Water Affairs and we are in advance stages to
secure grants for the 2022/23 financial year with two reservoirs’ at Seeisovile and between
Brentpark and Phomolong area respectively. This will ensure water pressure and constant
water supply.
We will also be doing replacement of a 4 km asbestos water pipe line with PVC pipes at 11th
avenue, residents of both Kgathliso, Brentpark and the Industrial areas will have
uninterrupted water supply.
Madam Speaker this increase will also address the water catchment in Viljoenskroon where
we intent to take the 5 strong boreholes in Phahameng and link them with a water pressure
tower to ensure capacity for the residents of Rammolutsi.
Honourable Council Whip we very excited about the assistance from the Provincial
Department of Human Settlement, what an achievement, they will be assisting us with bulk
infrastructure to ready the municipality to populate 5390 sites in Kroonstad with mix
development of RDP and Self-development for the middle class. This will assist the
municipality to focus on the 2006 RDP list. The Provincial Human Settlement is currently out
on tender process and the tender will close on the 5 July 2021. We would like to urge local
contractors to apply to render this service. Speaker, we believe the Department will appoint
a service provider as soon as possible.
Sanitation rates, honourable members, will increase with 6.6%. This increase is to tackle
dilapidated infrastructure at our plants where we need around the clock monitoring to
ensure that spillages don’t over flow in to our River, this should always be a priority
Electricity rates Cllr Nthlapo, we take note of your request and we will envisage to move this
council to be financially viable to grant such request. As things stand currently our Eskom
Debt will not allow us to add additional free units to the indigent households. Electricity is
regulated and the proposed 15,06% has been dropped to 14.59%. While the municipality has
to procure electricity at 17,08% increase granted to Eskom by NERSA, this results in an
outright loss of 3,21%. We can no longer tolerate electricity theft and bypassing, we need to
work around the clock to minimize internal usage and also seek alternative sources of energy.

The re-advertisement for the electricity generation tender should be concluded before the
end of October this year. This will assist the municipality to drop our current maximum
demand from ESKOM and also allow areas like Viljoenskroon to increase its capacity for
future development.
While we wait on that I have instructed the acting municipal manager and her team to
negotiate with Eskom in order to increase capacity in Viljoenskroon to assist Industrial
Development, Business like Alam Brothers should not wait to get the electricity supply they
need to grow their business.
Property rates, honourable members will increase with 6.7% however there will be discount
of R200 000 on property valuation, this is double from the R100 000 of the previous year, we
believe this will assist not just the indigent residents but all residents of Moqhaka against the
effects of Covid 19.
Madam speaker we are also envisaging the following developments with investors as we
have striven hard to market Moqhaka Local Municipality. We started with the beautification
project, we joined hands with Local Businesses that has seen the municipality being
recognised by Africa Day, Times live and other social mediums. I find it strange Madam
Speaker that today some political parties would want to claim that the municipality needs
saving, let me explain Honourable Speaker, the very political party has been struggling to get
the adopt an Island and Circle project implemented until my office go involved.
Madam Speaker allow me to recognize the partnership my office has with the Ignite and
Revive team led by Andre Van Pletzen, JP Botha and Pierre Kritzinger. Let me acknowledge
them for the amazing work they and many other business man and women have been doing
through this partnership. Speaker this partnership has seen Premier Milling investing
R300 000 on the beautification project it has also seen our involvement through our
partnership with the algurmation of Afrikaans High and Kroonstad High School now known
as the Trio. Honourable Members we are still busy engaging the Department of Education
with regards to the establishment of a Primary School at the current Afrikaans Secondary
School.
Speaker we have also seen the partnership brining a R2 000 000 investment into the
Morewag Swimming pool that will see Kroonstad hosting Provincial swimming galas.
Speaker it is important that we seek to assist our youth with education and developmental
programs, our partnership with Star Foundation will do just that. Our partnership with the
University of Free State Arts Department has seen us partnering with Mr Jerry Mofokeng and
his team form A Raisin in the Sun. they will be visiting the municipality in September 2021
and we belief they will inspire our Youth from Moqhaka Art Forum.
Honourable Members, it is our wish that the MEC Public Works grant us permission to show
the Department what we can do with the Voortrekker Hospital property. It is primary land
and I believe we can get fantastic investment for that property.

Honourable members we almost lost the Maokeng Mall investment due to election
shutdowns, investors don’t want such as we had seen with the withdrawn of the Spar
Development at the entrance of Kwe-Kwe Village. I would like to urge political parties to
always consider the loss of investment and loss of possible job creation that follows as a
result of election shutdowns.
Councils rezoning of Reitz street has brought us development of a Boutique Hotel by
Mafutha Properties. It has also sparked investment interest from Moja Cafe and the Loft the
rezoning joined with the beatification process has really enhanced the potential of Kroonstad
and its people.
We welcome the application of Tribal Fitness to build their own gym near Caltex Petrol
Station in North Road. Honourable Speaker seeing young people investing into our towns
economic growth is indeed a welcome relief. One should always strive to live a balance life
and with that in mind we will embark on the Development of Moakeng Stadium, we will
enhance development of sports infrastructure around the current astro soccer pitch.
Speaker the revival of our Agricultural Sector has always been key to our economy and our
approval for an Agricultural Solar Greenhouses Farm from Matli Holdings Group next to the
weigh bridge will create possible job creation of 250 to 300 jobs in the first phase of this
investment, this phase will be rolled out over a period of 15 months. This investment will also
be linked with the Farmers Support Unit by the Department of Agriculture, Rural
Development and Land Reform which is currently being rolled out on the Viljoenskroon road.
We are currently busy with an application to the Department of Trade and Industry to
enhance the infrastructure of our Industrial Park. We want to thank the businesses whom
have submitted their questionnaires in assisting the municipality to qualify for the Industrial
Grant.
MMC Ramathibe we are also at an advance stage to conclude road infrastructure project that
will cost more than R35 million in our joint efforts with business like Senwes and Premier
Milling to name a few. Soon we will be tabling a report to council with this regard.
Madam Speaker we have also seen the investment of construction of Orphan Street that’s at
the Petrol Depo and the Traffic Department.
Madam Speaker our partnership with Kroonstad Business Chamber has seen us starting with
the Community Safety Forum and we have seen the installation of surveillance cameras at
all entrances of Kroonstad and soon to be spread out to Viljoenskroon and Steynsrus.
Honourable members this will enhance not just community safety but also show the country
that Moqhaka takes safety of its residents seriously.
Honourable members we are currently facing a fleet problem, this council has appointed
Mponi Fleet to deliver Yellow and White Fleet, I have requested the Acting Municipal
Manager to instruct the service provider that all white fleet should be bought locally, local

businesses were willing to loan us vehicles during our December Traffic Program and it would
only be fair to support them in return.
Dr Viljoen, refuse removal will increase with 8.1% we have appointed a panel of service
providers to assist us with refuse removal trucks, this increase will assist us to clear illegal
dump sites, purchase our own refuse removal trucks in order for Moqhaka Local Municipality
to rendered this service again internally.
Madam Speaker allow me to once again apologize to the community of Moqhaka for the
inconvenience in refuse removal.
Honourable Speaker as you are aware that we have almost come to the end of this current
administration that was incepted in 2016 after the local government elections. Speaker let
me take this opportunity to highlight some of the achievements during this term of office.
   1. Bulk sewerage, Electrification and water infrastructure of 605 residential sites in
      Matwlangtlwang.
   2. Bulk sewerage of water installation of 4000 residential sites in Rammulotsi.
   3. Upgrading of Loubserpark Sports Facility.
   4. Bulk water and sewerage infrastructure installation for 256 residential sites in
      Maokeng.
   5. Construction of Access and Cross pump stations in Viljoenskroon.
   6. Construction of Storm water channel next to BP garage in Maokeng.
   7. We have so far allocated +/-1300 sites, 605 in Matlwangtlwang, 186 Maokeng and 509
      residential sites.
   8. We are currently constructing 5 roads in Moqhaka. Three in Maokeng and Two in
      Rammulotsi.
   9. In partnership with the Department of Sports, Arts and Culture and Recreation, we are
      currently constructing a Multipurpose Sports Centre in Maokeng ward 05.
In the new 2021/22 Financial Year will be constructing;
   1. 0.83Km Paved road and 0.33Km V-drain Storm water in Rammulotsi.
   2. 1km Storm water and channelling of Vlei area in Rammulotsi.
   3. 1.34Km Road and Storm water channel in Gelukwaarts, Maokeng.
   4. 2.5Km sewer pipeline in Gelukwaarts, Maokeng.
   5. We are anticipating to allocate 5390 residential sites in the 2021/22 Financial Year.
      This will assist in addressing the residential site backlog in Maokeng.
   6. There are 714 Title deeds that will be issued in the new financial year.

       398 in Constantia Park
       36 Phomolong
       91 Gelukwaarts
       105 Relebohile
       89 Seeisoville

Honourable Members the budget of the municipality was prepared taking into consideration
the Municipal Budget and Reporting regulations, the national Treasury Circulars (98 & 99)
and the inputs from the provincial treasury made during budget benchmarking sessions held.
The application of sound financial management principles for the compilation of the
municipality’s budget is essential and critical to ensure that the municipality remains
financially sound and that the municipality is able to provide services to all communities in a
sustainable manner.
Revenue collection is the lifeline of the municipality and as the municipality do not have
reliable sources of revenue, we are therefore dependent on electricity, traffic services,
assessment rates and grants from national treasury as the sources. We have anticipated on
implementing a variety of revenue collection strategies and want to encourage those whom
can afford to pay for their services. I want to thank councillors for paying their services and
we have seen a major drop in councillors debt. We will put system in place to ensure
municipal official whom owe the municipality for services pay their accounts. We cannot
expect community to pay if our own employees don’t pay.
The annual total Budget Revenue for the 2021/22 financial year amounts to R1.02 Billion,
with own revenue of R784 million and grants spending of R236 million there is an increase
as compared to the last year budget of R14 million
The annual operating expenditure for the 2021/22 amounts to R986 million. it has increased
with R10 million with most capital projects being single –year projects which run for a period
of one year but some MIG funded projects are multi –year projects.
Employee related cost is at R323 million this increase in terms of the employee cost is 6%
and 33% of the total expenditure budget. While councillors remuneration remains as
determined by the Minister of Cooperative Government and Traditional Affairs according
with the Remuneration of Public Office Bearers Act.
Repairs and Maintenance at R130million and is 13% of the total budget as prescribed
The provision of debt impairment was determined based on an annual collection rate of 85%
Madam Speaker it is therefore recommended that council approves the Annual Municipal
Budget for Moqhaka Local Municipality with its amended policies as tabled within this
agenda.
In conclusion Madam Speaker, let me take this opportunity to thank you and the members
of this council for the opportunity to table the 2021/22 IDP/Budget. We have had to work
around the clock to comply with Provincial and National Treasury and I would like to
appreciate the work done by the CFO and his team led by the MMC Finance. The African
National Congress for the trust bestowed upon me and my team. The patience my wife and
children had to endure during the drafting of this budget and all the other stakeholders and
community members whom participated during the public participation process.

Let me leave you with words from Oliver Tambo
“We have a vision of South Africa in which black and white shall live and work together as
equals in conditions of Peace and Prosperity”
Vind Vreede (find peace)