eThekwini Municipality’s R 70.9 billion proposed 2025/26 Medium Term Revenue and Expenditure Framework (MTREF) Budget has come under the scrutinizing analysis of concerned ratepayer associations. The proposed MTREF budget was approved by the Executive Committee (EXCO) last week Friday. Key adjustments for the 2025/26 financial year included:
- Assessment Rates: The increase was reduced from 6.5% to 5.9%
- Water Tariff: Residential increase reduced from 15% to 13%, and business from 16% to 14%.
- Sanitation Tariff: Residential increase reduced from 13% to 11%, and business from 14% to 12%.
- Refuse Tariff: Domestic increase reduced from 9.9% to 9%
- Electricity Tariff: Set at a 12.72% increase, as guided by the National Energy Regulator of South Africa (NERSA).
The R7.3 billion capital budget will be funded through a combination of grants (R3.24 billion), internal funding (R2.06 billion), and external borrowing (R2 billion).
The budget formulation process included comprehensive public hearings across all regions and engagement with various stakeholders, including business and traditional leaders, as well as opportunities for comment through multiple media platforms.
According to the Municipality the proposed budget is open to amendments from the public in terms of ratepayers and residents. The issue of borrowing as put forward by Mayor Cyril Xaba’s administration of R2 billion a cause for concern. The city and local region are focused on attracting investors. The reduction on tariffs by City Hall is reasonable. However, there is still more to be done in cooperation with the provincial level of administration in terms of improving eThekwini’s status. Durban is a strategic port and commercial hub on the Indian Ocean. The province of KwaZulu-Natal and the eThekwini region need to utilize the city’s potential to the advantage of residents. The concerns of ratepayers have to be taken into account and all rounds of consultation conducted fairly.
Meanwhile Durban Businessman and legal advocate Siyabonga Xulu is taking a hardline stance against the Municipality. The businessman is demanding payment of over R413 million due to his company Solbeth Security and Risk Management Services having trained security personal for the Municipality.
Xulu, the owner of the Makhathini Group, which oversees 21 companies, told the Daily News, he will not relent until the city settles what’s due to him, which includes over R62 million in interest. According to Xulu, his company was brought in during a period of heightened threats against municipal leadership. He alleged that the then city manager, Nzuza, personally appointed Solbeth to provide close protection and covert security operations for high-ranking officials. These services included sweeping and debugging of offices and homes, installing secret surveillance equipment, and monitoring movements of personnel through advanced systems. The original agreement was for eight months, with an option for renewal. Xulu claimed that even after the contract lapsed, Nzuza instructed him to continue the work, which he did, for years, believing the city would honor its financial obligations.
eThekwini council leadership has definitely found itself in a serious scandal. Xulu had provided municipal councillors and the mayor with state-of-the-art security and even went so far as to conserve their privacy. The allegations by Xulu that he was not paid for the services his Makhathini Group Corporation rendered to eThekwini’s local councillors could ruin the remaining ethical trust between residents and the Municipality. Mayor Xaba does not want this case of lapsed payments to drag out in court. He should do the right thing reach an out of court settlement with Xulu and pay him the money owed. However, Xulu for his part will have to provide evidence for the services his Solbeth Security and Risk Management provided for. Running a Municipality like eThekwini region is a complex task but they should always be ready to pay what they owe.
Article written by:
Yacoob Cassim
Journalist at Radio Al Ansaar
