Once lambasted for a revenue collection rate of below 30% three years ago, the Amathole District Municipality says it has taken steps to enhance its revenue.
The prescribed norm is a 95% collection rate.
Delivering the state of the district address on Wednesday in Willowvale, mayor Anele Ntsangani gave an upbeat assessment of the municipality.
He said the district remained heavily dependent on grant funding as the main source of revenue.
“The leadership of the district is committed to devise revenue enhancement strategies and improve revenue collection.
“During the period under review, we have taken steps to enhance our own revenue.
“We have also diversified our payment methods by introducing an App called pay@, which allows our customers to pay at [retail shops].
“These services are designed to make it easy for customers to pay ADM accounts and thus enable us to increase revenue collection,” Ntsangani said.
Ntsangani said the municipality still grappled with the “bloated organogram”.
“We have approved a balanced budget of R2.6bn for the 2025/2026 financial year, which is not fully funded.
“We received a letter from the Amatola Water Board confirming a debt relief that will be phased in over a period of three years.
“This is a significant milestone as it will lead to achievement of a funded budget,” he said.
“Our indebtedness which is now under control will still soar or worsen if we lack control and monitoring.
“Coupled with our steadily increasing reserves will lead to a funded budget. That is why we will not allow the filling of posts willy-nilly.
“We have managed to some extent to turn the situation around pertaining to expenditure patterns, revenue collection and improved audit outcome.
“We have managed to build and keep reserves for the first time. I can safely say we have more than R100m in our reserves.
“However, with the reserves we have, coupled with our income, we are considering using our own revenue to build offices in Qumrha.
“We are advised by management to start this multiyear project before the end of the year.”
He said illegal connections to water and electricity infrastructure led to sewage spills, dark towns and dirty towns.
“If this continues unabated, it will have knock-on effects or rattle investor confidence.”
Four municipal officials —three councillors and acting fire and emergency services head Dumisani Mkhize— were gunned down between May 2024 and June 2025.
Ntsangani said the perpetual assassination of councillors and municipal staff remained a thorn in their side.
Despite poor economic conditions, the district had retained minimal tariff increases at 6% for water and sanitation.
During the past two years, the municipality had reflected on the challenge of not budgeting enough for repairs and maintenance.
“I am happy to report that this year we made good on our promise to budget for repairs and maintenance of our assets — an amount of R72m, 3% of the operating expenditure,” he said.
This financial year, a 4% increase had been gazetted for the municipal infrastructure grant allocation, amounting to R511.673m, of which R128m “has been designated as a grant in kind for the 2025/2026 financial year”.
Special programmes including GBV, the rapid response team and focus on youth, women, people with disabilities, District Aids Council and HIV Aids awareness programmes were allocated R1.2m.
Aspire, the municipality’s development agency, has been allocated R15m, an increase from R10m previously allocated.
Ntsangani said they had increased the allocation to the two kingdoms in the district from R200,000 to R400,000 for each kingdom.
GBV and children’s rights activist Petros Majola said he was happy with the address.
“We always have cases, and we don’t get a rapid response. We are happy there is a rapid response team and we will make use it.
“I will do follow-ups on how the allocated money is spent and be part of those programmes,” Majola said.
Co-operative governance and traditional affairs deputy minister Zolile Burns-Ncamashe said Ntsangani’s address was anchored on the lived experiences of the people of Amathole.
“A part of the basic challenges facing the communities is around water, roads infrastructure, as well as putting emphasis on the importance of their heritage.
“The budget allocation to the palaces is an [example] that can be emulated by all municipalities where you have kingships, including host municipalities, he said.
Daily Dispatch
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