Creative accounting used in Kouga adjustment budget

The DA opposed the adoption of the Kouga Municipality adjustment budget at a special Council meeting last week due to some glaring
mistakes that were evident in the budget presented to Council.

Despite the fact that some of the DA Councillors only received their agenda’s an hour before the meeting, which gave them no time to
prepare, the DA noted that there were obvious flaws in documentation that was not even submitted to the Finance Portfolio before the Council meeting.

There was absolutely no provision for bad debt made in the adjustment budget.

“The Council made provision for bad debt of R 18, 6 million in the 2012/13 budget which was based on a collection rate of 96 %. Yet, our
collection rate is only 89 % which means that further provision for bad debt should have been made in the adjustment budget but instead
there is no provision at all”, said DA caucus leader Chimpie Cawood.

The DA is deeply concerned that R 2, 1 million was to be cut from an already lean Repairs and Maintenance budget for the 2012/13 financial

da in our future work
“Our roads are in a serious state of disrepair, there are regular water leaks, the sewage infrastructure is in danger of collapse and
more funds should have been allocated to the maintenance budget, not less”, added Cawood.

“The increase in employee costs from R 173 million to R 187 million could also not be supported. This R 13, 24 million increase will see
staff costs rise to 40 % of Kouga Municipality’s own income which is way too high”.

The DA proposed that the Adjustment Budget be referred back to the Finance Committee of Council but the ANC majority voted for the
adoption of the budget.
Funding from National Government for the upgrade of the Jeffreys Bay sewage works was also cut, which means the town’s sewage problems will continue unabated.

It is also unclear just how the Kouga Municipality plans to pay the outstanding water bill owed to the PE Metro. At the end of 2012, the
bill stood at R 25 million and the payments made by Kouga do not even cover the interest being charged by the Metro.

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One Response to “Creative accounting used in Kouga adjustment budget”

  1. Chimpie Cawood Says:

    Brenton Creative????????????????????????????? C

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