R28 million write-off takes second spot as donations policy comes under scrutiny
It was going to be interesting to watch the dynamics of the local council following the recent announcement of a national government of national unity. The 20-member Ndlambe council has – at least for the past two years – prided itself on being able to deal with even the most controversial issues in a largely cordial and mostly constructive manner. So, if there is any difference in how the local council interacts, now that at a national level, the majority ANC and DA are partners rather than opponents, so far, it’s behind the scenes.
Along with the three-member EFF caucus, the 6-seat DA caucus has over the past two years sought to establish itself in a watchdog role. So, when the donations policy of Ndlambe Municipality topped the 220-page agenda of a special council meeting on Friday June 28 it wasn’t a surprise that DA caucus leader Sikhumbuzo ‘Skura’ Venene raised concerns.
“It is problematic that the municipal manager has the discretion to give donations to individuals or entities,” Venene said. “These decisions should be made by the executive committee who can take a decision objectively, having looked thoroughly at what resources are available.”
Moreover, Venene said, there should be a report back to Council on every donation signed off on.
Speaker Andile Marasi countered that donations are the prerogative of the Executive Mayor and the Municipal Manager and are motivated by a letter from the municipality’s Special Projects Unit. He said he had spoken to the MM about the donations policy. The municipal manager had emphasised the ad hoc nature of requests for donations, some of which were for urgent emergency relief.
Acting municipal manager Michael Klaas added, “Although we agree with the principle of transparency, donations are operational matters and the [relatively low] frequency of exco meetings may hinder the provision of relief.
The word “haphazard” was used, but it was clear the intended meaning was “ad hoc”. Both Venene and Ward 6 councillor Edward Walker seized on the “urgency” aspect of the argument.
“There are provisions within the Municipal Finance Management Act,” Venene said. “We cannot be haphazard about this because it reflects poor planning.”
Donating based on “urgency” would expose poor planning in the institution.
“The Exco has been delegated the role of leadership and we are supposed to be taking these kinds of decisions on a day-to-day basis.
“A donation request should come as a formal application, even if it’s urgent,” Venene said. “People are asking me about things going on that I know nothing about. The MM cannot make decisions for the institution: his role is to monitor the implementation of decisions taken by this council: the council is the powerhouse for decision making.”
Ward 5 councillor Mzwandile Sweli supported the policy of collective decision making for the sake of transparency and to prevent the possible abuse of power by an individual.
Ward 6 councillor Edward Walker argued, “In the same way that special open council meetings can be called, there is no donation so urgent that a special (committee) meeting can’t be called.”
The donations policy was deferred pending further amendments that would be made following a workshop on the donations policy.
Those discussions took up most of the meeting, and so the writing off of a total of R28 million in fixed assets and debt went somewhat under the radar.
Councillors agreed that fixed assets amounting to R1.5 million from the fixed asset register; debt of R7.4 million from the accounts of deceased ratepayers; and indigent household debt amounting to R19 million should all be written off.
- This article was first published in Talk of the Town, July 4 2024. The newspaper serving the communities of Ndlambe and the Sunshine Coast, with a weekly wrap of Makhanda news, is available at stores from early on Thursdays.