Comms with Ndlambe Municipality

Request to meet with the Auditor General regarding Ndlambe’s financials

KOSRA has conducted an analysis of the Annual Financial Statements of Ndlambe for the years from 2019 to 2023 which has revealed that it is in financial difficulty and has consistently failed to exercise proper and strict management controls to eliminate fruitless & wasteful, unauthorised and irregular expenditure, as has been stated in the Audit Reports over this period.

Some of the findings include:

  • It has written off and / or condoned R1,175,704,431 in fruitless & wasteful, unauthorised and irregular expenditure since 2019. An horrific figure and clear evidence of the failure to manage expenditure.
  • It has lost some R331m in its segment businesses – being water, electricity, water & sanitation and waste removal – since 2021 to 2024 with seemingly little being done to arrest the slide to bankruptcy.

KOSRA has requested a meeting with the Auditor General’s Executive Director of Provincial Audit and/or its Eastern Cape executive(s) responsible for the audit to air our concerns and understand how the AG assesses Ndlambe and its management.

KOSRA well keep you updated on progress.

Ndlambe – Municipality Financial Sustainability Index

KOSRA paid Ratings Afrika to perform/produce the MFSI on Ndlambe.

Click here for the context of the index. It explains the index and paints the picture of the municipal sector and by looking at Ndlambe’s rating we can deduce that Ndlambe is not doing very well. These documents have been forwarded to the Municiple Manager of Ndlambe week of 2 September 2024.

Ratings Afrika is a well-known ratings entity and has been undertaking this index assessment / analysis since 2011.

So the MFSI is a well-known, independent, respected objective assessment of the financial health of municipalities.

The documents used by them to do the ratings of every municipality are publicly available documents, Ndlambe included.

Drought relief levy

Drought relief levy letter to Ndlambe.

We are receiving numerous complaints from ratepayers with regard to the drought relief levy that continues to appear on the monthly rates accounts of owners. Click here to read the letter that was sent to Ndlambe.

Reply from Ndlambe:

Good Afternoon Mr Huyssteen

I hereby acknowledge receipt of KOSRA communication on Drought tariff, the same issue was raised by PARRA, we have been in contact with the parties relevant to this matter for instance, the change to a drought tariff was informed by a decision to declare Ndlambe as part of the drought area. A change in the water levels does not give us authority to revert to the normal tariff without following a due process. We have contacted the relevant party and we are waiting for a response from them, we will do a follow up so that we can provide the required response.

Regards
M Klaas

Rates Billing Dispute – Valuation Changes SV 8

Response from Ndlambe following the recent valuation and rates meeting in the Kenton Town Hall.

Good day Sir/Madam,

Kindly except my apologies for the delay in sending the official correspondence regarding the matter as seen in the subject heading of this email.

The matter was deliberated on at the Rates and Valuation committee meeting that took place on the 10 August 2023 which resolved that the KOSRA rate payers affected by SV 8 valuation changes be rebated the amount equivalent to the escalation of the rates related to the SV 8 valuation changes for the period from inception of Supplementary valuation Roll 8 up to 30/06/2024 which is the end of the validity period of the current General Valuation Roll.

The Special Council meeting of today approved the minutes and resolutions of the Finance committee meeting held on the 10 August 2023.

Further kindly note the adjustment/credit journals for all affected properties for the period Jan 2023 to June 2023 has been passed as a single amount on each individual account and will reflect on the August 2023 statements. Rate payers of affected properties will note that a 2nd and 3rd Credit Journal has been passed for the July 2023 and August 2023 rebates.

Note that property valuations have not changed, and credit journals are being passed to reduces the current rates charged to the amount it should have been prior to the valuation change. Further notice the reduced billing amount for July 2023 and Aug 2023 will not be exactly the same as Nov 2022 as the yearly increase took place in July 2023.

The rebate credit journals will be passed every month going forward up to June 2024 whereafter the new General valuation roll property value and 2024/2025 rates tariff will be implemented.

Thanks
Diane

Survey results: Legal action against Ndlambe municipality

Analyses of the responses to the recent survey sent out regarding Ndlambe Services

Total number of respondents: 256

  • Respondents believe that they are not getting value for the rates and taxes that they pay. 98% 98%
  • Approve of KOSRA instituting legal action against Ndlambe. 91% 91%
  • Respondents have indicated that they are prepared to contribute toward funding legal expenses estimated at R2.5million. 77% 77%
  • Respondents have posted additional comments. 89% 89%

It is safe to say that an overwhelming majority of residents are not happy with the services provided by Ndlambe. 

Although most residents are in favour of litigation and a surprising number of respondents have indicated that they would contribute towards funding litigation, there is no indication of the actual amount of money they are prepared to contribute.

Many respondents are pessimistic about the outcome of litigation.

Feedback from Ndlambe municipal meeting held in Kenton on 14 August 2023

KOSRA attended the “Call for inspection Of General Valuation roll for 2024 and Lodging of Objections” meeting hosted by Ndlambe Municipality.

The meeting took place in the Kenton Town Hall at 12h00 on 14 August 2023.

In attendance from Ndlambe Municipality was Diane May (DM) and Jeanette Pienaar (JP). Mark Lindstrom (ML), municipal valuator.

Thank you to all rates payers who attended the meeting. There were about 80 in attendance.

The meeting was divided into two clear discussion points.

  1. The Valuation Roll and questions surrounding that topic. The municipal valuator Mark Lindstrom presented and explained the evaluation process.
    Please see attached slide presentation
  2. The actual rates tariff, how Ndlambe formulate the tariff and the way forward with regards to 2024 budgets.
  • The manner in which the factor is formulated was discussed and questioned. No clear answer provided.
  • Lack of services was raised. DM advised she is responsible for revenue collection and services falls under expenditure. These topics need to be raised over the budgetary period with the budget committee.
  • DM stated that KOSRA have been in extensive discussions with Ndlambe Municipality regarding rates concerns, amongst other areas. Outcome of these discussions between KOSRA and Ndlambe held on 27 July will be shared with KOSRA following the municipal meeting scheduled for 30 August.

Following the official meeting a spontaneous breakout session was led by Andre Shearer.

Some great ideas grew from this informal discussion. Key takeaways being:

  • Grow a database of existing skills amongst our community
  • Grow the list of willing “helpers”
  • We need to show a strong and serious front against Ndlambe and the way they mismanage the rate payers’ monies
  • Andre will link KOSRA with OUTA/Afriforum and expose KOSRA to his network that is involved with confronting local and central Government on issues related to mismanagement of tax payers/ratepayers funds.
  • Suggestion was made to have a KOSRA WhatsApp group. Trish Barwick pointed out that KOSRA already communicates across the following platforms. 365, KOSRA Facebook page and website as well as directly to our email database of 1575 subscribers. All of these platforms have the option/ability to post comments and suggestions.
  • It was agreed that all homeowners should contribute towards KOSRA. Currently we only have 30% paying members. Trish and Martin will drive a plan to grow the membership.
  • It was suggested that KOSRA be more transparent with communicating the “in progress” initiatives. This is noted and will be implemented.

SDF introduction

KOSRA plays a huge role in terms of representing the residents of Kenton on Sea and serves as a link between the residents of Kenton on Sea and the different sections of the Municipality, including the Town Planning Office.

In relation to the SDF (SPATIAL DESIGN FRAMEWORK) Project, the appointed Service Provider by Ndlambe (Tshani Consulting) managed to review, complete and addressed the comments received during the public participation period. Those who have commented on the SDF would have been provided with feedback.

The Municipality managed to table the SDF for consideration earlier this year and confirmed the adoption thereof on the 31st of May 2023. This will come into operation and effect from 1st July 2023.

With regards to the SDF for Kenton on Sea, the Municipality will have to look for other funding sources to fund the ‘Precinct Plan’ project from the Provincial Government. We will keep you posted.

Thank you,
Pollos Purdon.

Comms with Ndlambe – Waste and Recycling

Dear all

We would like to keep you updated on the regular communications we have with Ndlambe. Should we at any stage receive a reply we will share that too. In this case we are referring to the waste and recycling plant located in the Bushmans Industrial area and the approval of a new location site. 

Hi Debbie, Ndlambe Municipality

Please can you provide KOSRA with commitment from Ndlambe to reconvene the monthly Waste Management and Recycling meetings.

The last two meetings were both cancelled by Ndlambe. Ironically Ndlambe provided all the dates to KOSRA as these dates were suitable to Ndlambe’s representatives who needed to attend the meetings.

There are a number of important matters that are still under discussion and require urgent resolve. However, once again we have wasted two further months of opportunity to try and get the matters attended to.

To be frank with all at Ndlambe Municipality, the residents of Kenton and the surrounding area are fed up with the lack of service delivery. The disastrous state of the general infrastructure, (water, roads, waste management, vehicle logistics and sanitation) are inexcusable.

Worse so for KOSRA, there is no evidence or indication of a plan or strategy by the Council to remedy the situation.

The only evidence of any action by Ndlambe is reactive and then any action or remedy is temporary and poorly implemented. Nothing is repaired or maintained properly.

The Municipal “waste site” in the Bushman’s Industrial Area is an immediate example for this Waste and Recycling forum!

KOSRA and its Chairman are fast losing their patience with the inability and incapability of Ndlambe Municipality to carry out the day to day tasks accredited to and associated with the functions of a Municipality.

I would appreciate an urgent reply to this request for dates for these Waste and Recycling meetings. I look forward to hearing from you.

Regards

Steve Barwick
KOSRA

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