Business Report

Ratepayers challenge eThekwini's budget reprioritisation: A call for transparency and accountability

Zainul Dawood|Published

The eThekwini Ratepayers Protest Movement (ERPM) and eThekwini Residents and Ratepayers Association (ERRA) claimed they were never consulted over the R874.9 million reprioritisation of capital budget for the 2025/26 financial year.

Image: Pixabay

eThekwini ratepayer bodies have lambasted the municipality for excluding them from the recent R874.9 million reprioritisation of the capital budget for the 2025/26 financial year.

The municipality stated that the adjustment is a proactive measure to address urgent and critical departmental priorities and accelerate service delivery.

However, both the eThekwini Ratepayers Protest Movement (ERPM) and eThekwini Residents and Ratepayers Association (ERRA) claimed they were never consulted.

The adjustments were reviewed by the executive management of all currently approved projects.

The municipality explained that this review meticulously assessed procurement status and project cash flows, leading to the identification of funds from projects experiencing implementation delays.

The council has resolved to reprioritise these available savings and unspent funds to ensure accelerated service delivery and achieve reasonable expenditure by the end of June 2026.

Reprioritisation of savings/project unspent funds:

  • R314 million - Water and Sanitation
  • R23 million - Cleaning and Solid Waste
  • R226 million - Electricity
  • R122 million - Community and Emergency Services
  • R62 million - Engineering
  • R60 million - Human Settlements
  • R16 million - Economic Development and Planning
  • R5 million - Finance
  • R45 million - Office of the City Manager

eThekwini Mayor, Councillor Cyril Xaba, had said the reprioritisation of funds did not mean projects would be abandoned.

He said the administration is proactively responding to the needs of residents through strategic budgeting

“This is not about cutting projects; it is about redirecting available resources toward areas of immediate and critical need to build resilient infrastructure, enhance service delivery, and improve the quality of life across the municipality. We are focused on ensuring every rand is spent responsibly and effectively to deliver tangible improvements for our communities before the end of the financial year,” said Xaba.

ERPM chairperson, Asad Gaffar, raised concerns about departmental allocations.

Specifically regarding the water and sanitation budget, Gaffar noted the recent division of the unit and its areas under the new management structure, making it unclear how much of the allocated funds would be dedicated to sanitation.

“Given the pressing needs in sanitation, particularly in informal settlements, it's essential to request a breakdown of the allocation to ensure that sanitation receives adequate funding,” he said.

Comparing the City Manager's Office allocation of R45 million to that of the Cleaning and Solid Waste (CSW) R23 million allocation, Gaffar said there was a refuse collection crisis in and around informal settlements.

“It's reasonable to question what critical functions the Office of the City Manager will undertake with this significant allocation, and how it will impact the delivery of essential services, particularly waste management,” he said.

Gaffar stated that the electricity unit received a substantial allocation, while the engineering unit received less.

“The community and emergency services allocation seems disproportionate to the pressing needs in sanitation and waste management. Also, given the housing needs in informal settlements, the R60 million allocation seems inadequate. Is the allocation of R16 million to the economic development and planning sufficient to drive economic growth and development in the city?” he asked.

“In the process of deciding to adjust the budgets, was there any thought applied to the cancellation of all the nice-to-have music festivals that have no material benefit to a collapsing city? “he said.

The ERPM intends to:

  1. Request a detailed breakdown of the water and sanitation allocation, specifying the portion earmarked for sanitation.
  2. Seek clarification on the Office of the City Manager's allocation, justifying the need for R45 million.
  3. Urge the city management to reconsider the allocation, prioritising essential services such as waste management and sanitation, particularly in informal settlements.
  4. Address the infrastructure collapse and the revenue department's issues as a top priority.
  5. Ensure that departmental allocations are aligned with the city's pressing needs and priorities.

ERRA's Ish Prahladh also called for transparency on the projects.

“Ratepayers and residents who cough out this money need to know actual expenditure and for what purpose. Infrastructure for water and electricity must be prioritised, especially around informal settlements. The R45 million allocated to the City Manager's Office should be used to clear some of the informal settlements,” he said.

zainul.dawood@inl.co.za