The Nelson Mandela Bay Municipality’s financial sustainability is under threat due to excessive water and electricity losses caused by an inept ANC/EFF coalition government, and as a result, the poor must now suffer.
This was the message from the failed ANC/EFF administration during a Budget and Treasury Standing Committee meeting today, when it proposed reducing the free basket of services poor residents receive under the Assistance to the Poor (ATTP) program.
In the 2023/24 financial year, unaccounted non-revenue water reached an all-time high of 48.66%, while the electricity department also experienced record electricity losses of 26.34%. This results in revenue losses close to R1.5 billion and will financially cripple the municipality if not addressed swiftly. Although this gross mismanagement was not caused by struggling residents, the ANC/EFF coalition government proposes that they must now bear the financial burden.
The DA will not only oppose the attempt at reducing the free basket of services to the poor, we will also table a motion at the next Council meeting to review the ATTP policy to make it more accessible to those in need.
In Nelson Mandela Bay, qualifying households under the ATTP receive a free allocation of 75 kWh of electricity, 8 Kl of water, and 11 Kl of sewerage. Should Council adopt the new proposal, poor households will receive a reduction in free services to 50 kWh of electricity, 6 Kl of water, while sanitation will remain the same.
The DA has consistently demanded that updated and costed Water and Electricity Services Master Plans be adopted, so that a comprehensive maintenance and repair program can be embarked upon. Furthermore, we have emphasised the need to employ skilled engineers and additional artisans to address our infrastructure challenges.
During the 2022/23 financial year, the DA-led coalition government also commissioned a Water Service Master Plan. Unfortunately, its implementation was halted after we were removed from government.
Providing free basic services to the poor, those households which earn less than the equivalent of two state pensions per month, is a Constitutional obligation. National government also funds those free services as it is offset against the equitable share paid to the metro.
Cutting essential services to residents is not a viable solution for restoring the municipality’s financial stability. Only by addressing rampant losses, corruption, and wasteful expenditure can the metro be placed on a path toward financial sustainability.
The DA is in your corner fighting for you. Together we can get Nelson Mandela Bay working again.