By Shakirah Thebus 
49m ago
Cape Town – Cape Chamber of Commerce & Industry president Jacques Moolman has criticised the City’s annual budget, referring to aspects of it as a cover-up.
The R56.6 billion budget was deliberated during a virtual City council meeting last week with over 200 councillors in attendance.
Moolman took a swipe at the City’s response from residents on the draft budget, bringing in fewer than 2 000 comments during a month-long public participation process.
“The reason may well be that ratepayers have grown tired of complaining. But it is more likely that council officials either love it being so, or think all is well because they are comfortably immune to economic realities,” said Moolman.
On Mayor Dan Plato’s announcement of a zero percent increase to City employees and councillors salary, Moolman said: “This statement is not what it might seem for it does not mention the ‘notch increases’ awarded automatically based on time served.
“Nor does it mention the wage demands of the various unions that all have a finger in the municipal pie and are demanding a lot more than 0%.”
Another concern Moolman raised was the expansion in staff numbers employed by the City.
“They seem to increase despite public statements of intent to reduce the salary bill that stands at about 30% of the total budget at the moment. That does not include consultants hired in addition, presumably to do the work the council staff is not able to perform.”
Moolman said the City council is run on an archaic system that needs to be investigated by an independent body from the private sector.
Mayco member for Finance Ian Neilson said the response to the budget was reasonable year-on-year, based on the data and context around public participation.
“The statutory 30-day comment process is not the only public process that informs the budget. The factors informing the budget happen 365 days a year through our engagements with residents and communities and our hands-on knowledge, experience and context of what is required in all aspects of the City.
“The City also has an active subcouncil and ward committee system that provides ongoing engagement,” said Neilson.
“The City has cut staff-related expenditure by more than R460 million and made no provision for cost of living increases in the 2021/22 financial year. To achieve this, the City petitioned the Local Government Bargaining Council not to award any salary increases for staff and councillors. Should the bargaining council bind us to making such increases, the City’s staff numbers will have to be decreased to achieve this commitment.”
The City announced a 4.5% average increase for rates, 5% increase for water and sanitation, and 3.5% for refuse removal. The electricity tariff will be increased by 13.48%.
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Cape Argus
Credit IOL