DA proposes alternative budget to address Maluti-a-Phofung’s financial woes

By Alicia Mmashakana

The Democratic Alliance in Maluti-a-Phofung has presented a simplified draft Adjustment Budget aimed at addressing the local municipality’s financial challenges and urging the political executive to adopt decisive action.

In a media statement on Thursday, DA councillor Alison Oates described the draft as a lifeline.

“We are proud to have crafted and published this alternative, to do everything we can to help rescue Maluti-a-Phofung’s finances,” said Oates.

For years, the municipality relied heavily on revenue from electricity sales to sustain its budgets.

However, Eskom now directly collects all electricity revenue, leaving the municipality dependent on an equitable share grant of R852 million from the national government, supplemented by income from rates, water sales, sewerage charges, and refuse removal.

Collection rates for these essential services are alarmingly low, ranging between 21% and 28%.

Additionally, the municipality faces a unique challenge as 21 wards in QwaQwa, governed under Tribal