Buffalo City Metro is facing yet another cash crunch — this time thanks to a massive overtime bill. In the understatement of the century, it has admitted that the past three-month’s cumulative overtime bill of R35m, has “affected its cash flow”.
And while it is forking out tens of millions of rand on overtime, its revenue collection rate sits at an underwhelming 62%.
The metro’s manager, Mxolisi Yawa, says they are looking to tighten controls and systems and reduce the BCM’s irregular expenditure.
But we have heard it all before.
A mere five months back, the council expressed horror at the R1.2m overtime clocked up by just the mayor and deputy mayor’s offices over April, May and June.
These two offices do not offer any essential services and it was not made clear what work required such a hefty overtime bill.
Mayor Princess Faku admitted in July that BCM’s expenditure by far outstripped its income and swore that they would present a financial recovery plan “to minimise spending”.
Until this metro makes good on its promises over many years to tighten up on its systems and controls, it will continue to haemorrhage money unnecessarily.
BCM remains the highest contributor to the Eastern Cape’s municipal irregular expenditure.
It accounted for R6.5bn [61%] of the R10.6bn irregular expenditure over the past financial year.
It is bizarre that this metro is unable to apply controls and ensure consequences for practices which fall outside of policy guidelines
The auditor-general’s office said it had again failed to properly investigate its irregular expenditure or take any action against responsible officials.
Residents can attest to the fact that the current massive overtime bill has not translated into better or quicker service delivery.
It is bizarre that with this metro’s top-heavy directorates it is unable to apply controls, demand accountability and ensure consequences for practices which fall outside of policy guidelines.
The metro is now promising to clamp down on its overtime bill just as tourism season is about to peak.
It is the one period where overtime could reasonably be expected to increase as visitors flood our coastal areas.
We have not yet even reached the halfway mark in the current municipal financial year. It seems a bit early to already be in crisis.
It is time that this metro cleans up its act and follows the AG’s repeated directives to strategically plan, budget, monitor and transparently account for what it spends.
And where it falls short, it needs to apply its much vaunted but underused policy of consequence management to those who are failing in their duties.
Until it does, BCM residents will continue to be shortchanged as they pay for mediocre services.
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