eThekwini Diverts R470 Million From Normal Tender Process

The Democratic Alliance in eThekwini was shocked to learn in a Finance & Procurement Portfolio meeting today that the use of Section 36 awards amounted to R472,838,811.22 in the 3rd quarter of 2011. This period applies from July – September 2011.

The use of section 36 awards should only be used to by-pass normal tender processes in exceptional cases where it is impractical or impossible to follow official procurement processes. However it appears that certain departments have chosen to completely ignore tender processes in favour of section 36.

The DA has found that in the 3rd quarter, the housing department accounted for section 36 awards totalling R245,743,468.08 in 10 awards accounting for 52% of all section 36 awards. The DA believes that the use of section 36 is clearly being abused by certain departments and officials to by-pass proper procedure. Something is clearly wrong with the Housing Department if they were unable to properly tender for the 10 awards.

The DA has demanded that the housing department be called to account at the next Portfolio meeting and explain why there was a need to divert such a large amount of money through section 36. It has also been proposed that there should be a permanent cap of R1 million on section 36 awards. Should the contract exceed the cap then departments would have no alternative but to use normal tender processes.

The DA also sought to highlight that the same companies were being issued with section 36 contracts and this might be the reason that normal tender processes are being avoided. Section 36 has become an easy option for departments to award tenders and clearly accountability is being lost through this process.

In the end, it is once again the poor of eThekwini who suffer due to funds being award to friends and cronies through section 36 thus rendering service delivery useless to those that require it the most.

 Media Enquiries:

Cllr Dean Macpherson

DA eThekwini Spokesman for Finance & Procurement

083 776 0202

Councillor Condems Parks Office Attack

The Democratic Alliance Ward Councillor for Durban North has condemned an attack by strikers on the Durban North Parks and Recreation office in Durban North this morning.

The attack took place at around 10am when 100 strikers arrived in a bus with pangers and sticks. The strikers forced their way through the gate and violently attacked staff members who had reported to work.

It is reported that up to 5 staff members were seriously injured and had to be taken to hospital. Reports from the scene also indicate up to 10 staff were kidnapped from the offices and forced onto a bus which then sped away. At this time it is not known where the kidnapped staffed are or what condition they are in.

Barbaric violent acts of this nature should be condemned in the strongest possible terms as no striker has a right to assault or kidnap staff that choose to work.

Issued by:

Dean Macpherson

Ward Councillor: Durban North

Property Rates Amendment Bill To Cripple Ratepayers

The Democratic Alliance in eThekwini has expressed serious concern over the proposed Municipal Property Rates Amendment Bill currently open for comment.

The bill sets out a number of controversial and potentially damaging changes to property rates and could spell disaster for property owners and investors.

The amendment to the preamble set out in the act on page 7 states that income derived from property rates does not need to be linked to specific municipal service.

The DA rejects this in totality. It is irresponsible of the department that this amendment could be put on the table. This devoids any and all accountability from a municipality to provide services to ratepayers and would be found to be in contravention of the Consumer Protection Act as a service or good should not be rendered without payment.

The Democratic Alliance believes that the substitution for the definition of “residential property” on page 13 is extremely worrying. The new definition states that residential property is only the primary property. This means that any other properties an owner owns would be rated commercial, double that of residential rates. Should this happen it would spell the death of property investment in Durban and send the property market into freefall.

It would also appear that municipalities are being given new powers to impose a super tax on property investors as this amendment goes far beyond the reach of SARS through the Capital Gains Tax. Should this be the case, it would simply not be financially viable to own more than one property.

The Act looks to extend valuations from 5 to 7 years. This is extremely problematic during times like the current depressed property market as it gives an unfair time advantage to Local Authorities. This means that property market values go down and rates remain based on higher valuations from the last valuation done.

The current valuation system is a total disaster and doesn’t need amendments but a complete overhaul which the amendment act does not speak too.

The Democratic Alliance is extremely concerned about what the Act could mean for the future of Durban considering that Durban is a high investment area for holiday makers. Should the Act be implemented in its current form, it would only cripple an overburdened rates base.

The public have until the 22nd of July 2011 to make submissions on the amendment bill.

Media Enquiries:
Cllr. Dean Macpherson
DA eThekwini Caucus Chief Whip
DA eThekwini Spokesman for Finance

0837760202

RATEPAYERS LIKELY TO FEEL THE PINCH OF ETHEKWINI DEBT CRISIS

Given the revelations of alleged financial mismanagement to the tune of R532-m in irregular expenditure in the eThekwini Municipality, the question must be asked: To what extent will ratepayers be forced to carry the burden of a municipality in financial crisis?

The ANC-run eThekwini council will be considering the rate randage and service charges, as it does on an annual basis for the formation of the annual budget. The Democratic Alliance is concerned that given the financial predicament of the municipality, much of the debts owed to the eThekwini municipality will be passed onto the ratepayer with greater than inflations based increases.

eThekwini has developed a reputation for not collecting the debts owed to it and pursues with fervour projects that tend to require massive financial bailouts at the expense of ratepayers and service delivery alike.

· Provincial Government Departments owing R1-billion

· Unfunded mandates totalling R750-million

· uShaka bailouts to the tune of R450-million

· Moses Mabhida estimated at R1.2-billion to ratepayers (This information is still not produced following requests to the Municipal Manager)

· No recovery of R500-million bailout of Remnant Alton

· A debtor’s book standing at R4.3-billion at 90 days

Residents are currently paying rates on property values conducted during the height of the property market, despite the decline in property values. This factor, in conjunction with the seemingly ill-managed debts owed to the municipality would render an over inflation level based increase to the randage or service charges unjust.

Already eThekwini is the most expensive Metropolitan to live in South Africa, with the rates randage of cities like Johannesburg and the DA-run Cape Town just over half of what is paid by Durban residents for properties of equal value.

It appears that once again pensioners will be hard hit, as the threshold on rateable properties for pensioners will be decreased from R3-million to R2-million. It seems this ANC-lead council will stop at nothing to squeeze every last drop out of ratepayers to make up for the declining rates base, which issue the city management completely fails to address.

The ANC led council have done nothing to increase the shocking figure of a rates base of 8.5% of residents in eThekwini which only further serves to contribute to any rates increase in the future.

The Democratic Alliance has constantly called for a plan to be developed to increase the rates base but this has not happened under the watch of Krish Kumar. The Democratic Alliance believes that ratepayers deserve answers, and as such will ask that the City Manager, Dr Mike Sutcliffe, be brought before the Economic Portfolio Committee to explain how it is that the metro economy has degenerated to the extent that has now been revealed.

Media Enquiries:

DA Cllr Dean Macpherson Spokesperson on Economic Development 083 776 0202

Michael Beaumont Provincial Director 083 776 2760

Democratic Alliance calls for urgent investigation into bank tender

Statement by Cllr Dean Macpherson DA eThekwini Spokesperson on Economic Development

Democratic Alliance calls for urgent investigation into bank tender 08 February 2011

In today’s Executive Committee meeting, in response to a direct question from DA Caucus Leader, Councillor Tex Collins, it came to the attention of the Democratic Alliance that there may have been certain irregularities in the awarding of eThekwini’s banking accounts to Standard Bank in December 2010.

City Treasurer Krish Kumar confirmed that a R1million “sponsorship” had been paid by Standard Bank to uShaka Marine World, believed to be for the next 5 years. As a direct result, this has led the Democratic Alliance to question if the awarding of the account was subject to the sponsorship being confirmed by Standard Bank for the next 5 years, and who was responsible for negotiating the deal. If this is in fact the case, such a deal would be in contravention of the Municipal Finance Management Act (MFMA).

It would now appear that councillors were misled by city officials about the terms of the tender when it was put to the vote in a full council meeting in December 2010. If these facts had been made known, the Democratic Alliance would certainly have voted against such a request.

On inspection of the midterm financial report and business plan of uShaka, at no point is the R1 million “sponsorship” reflected in the accounting report, which leads the Democratic Alliance to question where the money is and what it has been used for.

The Democratic Alliance will be immediately referring this to the Municipal Public Accounts Committee (MPAC) for an urgent and detailed report for investigation. Should any official be found to have contravened the MFMA in the awarding of the Standard Bank contract, the Democratic Alliance will be calling for immediate dismissal and criminal charges to be brought against those officials.

Media Enquiries: DA Cllr Dean Macpherson DA eThekwini Spokesperson on Economic Development 083 776 0202 Carol Hall Deputy Provincial Director 082 563 6806

Dear Mike Sutcliffe. Thanks but no thanks!

Dear Mike

On behalf of the ratepayers of eThekwini, we would humbly like to turn down your offer to remain as the city manager in Durban for the next 5 years. I am sure that while you think you have done much for the city of Durban, the majority of ratepayers would strongly disagree. Under your watch, we have seen rates skyrocket which has led to Durban becoming the most expensive metro to live in. Added to this we have a declining rates base of around 8.5% out of 3.3 million people and no attempt what so ever has been made to increase this. We have seen a street renaming campaign that was completely flawed and divisive to say the least. In your wisdom you built a theme park (uShaka) that has nothing to do with service delivery and has now become a bottomless pit for ratepayers to bail out. Talking about wisdom, you didn’t see fit to consult with the Sharks before Moses Mahbidha was built and now we have a stadium that the Sharks wont move to, basically stands empty and will cost the ratepayers of Durban billions of Rands to fund in the future. Added to this, you oversaw the collapse of Durban Transport to the tune of R500 million to the cost of ratepayers of which a single cent has never been recovered and not one person has been criminally charged. Durban has now become the most unfriendly city to do business with. Economic development has all but come to a standstill, the point waterfront development being a great example. When you say that in next 5 years you want to sort out the development for the old Durban airport site, the truth is that you had 10 years to do this as city manager and the site should have had a plan for development before the airport moved to King Shaka, but this simply did not happen. Our city departments are chaotic at best as a result of staff shortages and unfilled posts in most departments which leads to massive backlogs intern affecting service delivery. Talking of service delivery, in 2010 we built just over 9500 houses instead of the promised 15000 so it looks like Durban is not doing so great in that department either. So in short, you can understand why as ratepayers we are less than enthusiastic on your dreams to remain as “the man in charge” of this once thriving jewel of South Africa. The truth is that Durban needs someone who is not blinded by communistic and autocratic tendencies but someone who is able to look past their masters wishes and work towards the wishes of the people. I know for you, it would be a big ask to do this and so would ask you to rather take up the job that had reportedly been offered to you in Perth, Australia as this would be a delayed and welcome Christmas gift to the hard working ratepayers of eThekwini.

Yours sincerely.

Dean Macpherson

Ward Councillor: Durban North

 

DA condemns wasteful expenditure of R970 000 by eThekwini

IMMEDIATE PRESS RELEASE:

The DA in eThekwini have condemned and voted against a recommendation to provide Ukhozi FM with R970 000 for the Summer Campaign “Nyus’ IVolume.”

The recommendation sought to provide the radio station with money to launch a campaign to host a festival, give the municipality airtime on the radio and a VIP party for 400 guests under a marquee.

In a speech to a full council meeting, Councillor Dean Macpherson and Economic Development Spokesman said that the recommendation was an abuse of ratepayer’s money to kick off the ANC’s election campaign and questioned what direct benefit the City of Durban receives from such expenditure. The councillor also pointed out that according to the information contained in a presentation to the Executive Committee the festival had begun on the 20^th of November and was to end on the 18^th of December which brought into question whether the council had in fact already made the money available to the station if the programme was drawing to an end in a weeks time.

The councillor also questioned why no report was available from the previous year that the festival was held as was required by EXCO. Macpherson felt the reason why no such report had been presented was due to the fact that no benefit to the council had been quantified but was an opportunity to spend ratepayer’s money to the advantage of the ANC. He also said that this sort of expenditure was out of step with local government’s mandate of service delivery but rather an opportunity for ANC politicians to profile themselves.

Commenting, Councillor Macpherson said, “This is wasteful expenditure at its very worst. The city stopped providing funding to the Mr. Price Pr which Ballito now hosts which had direct benefit for the city in terms of tourism yet we find money to fund festivals and VIP parties. Something is seriously wrong when we have no money to build houses and provide services yet we can waste money like this, it is simply a smack in the face of the poor.”

Macpherson will be writing to the chairman of the Municipal Public Accounts Committee (MPAC) and the Auditor General to request that an investigation is launched into the issue to ascertain whether there is a case of wasteful expenditure to be answered.

 

Issued by: Dean Macpherson

Ward Councillor: Durban North

Economic Development Spokesman

0837760202

DA CONCERNED ABOUT PORT DEFICIENCIES

IMMEDIATED PRESS RELEASE

The Democratic Alliance in eThekwini have noted with extreme concern the recent remarks by the chairman of Mediterranean Shipping Company, Captain Salvatore Sarno, in which he cited falling levels of efficiency in the operating of Durban Harbour and his condemnation of Transnet for what he called its ‘monopolistic attitude.’

Studies have show that the Durban port moves around 23 containers per hour which has led to the port becoming the most inefficient port in South Africa. High costs including being the most expensive port in terms of marine, infrastructure costs and the second most expensive port regarding cargo tariffs are negatively affecting the City of Durban. It is also noted that the port employs some 40 000 people which makes it one of the largest employers in the city of Durban.

Since the ANC-led Ethekwini Council agreed to a DA notice of motion in 2008 urging that a feasibility study be made of the establishment of a container dryport at Cato Ridge so that container traffic can be removed from the overloaded road network around the port and be transported by rail, the DA notes that there has been no progress on the agreed motion. In fact for the whole of 2009 and 2010 the item was listed merely as being “outstanding” on the agendas of the Metro’s Economic Development and Planning Committee.

Commenting on the serious problems, Councillor Duncan Du Bois and Economic Development Committee member said, “The DA fully endorses the criticisms levelled at Transnet by Capt Sarno in respect on congestion and bottlenecks around the port and the resulting poor turnaround time of container traffic. The solution to the back-of-port snarl-ups and mushrooming container sites lies away from Durban in the form of a dryport at Cato Ridge. Not only will a dry port improve the turnaround time of the loading and unloading of containers but it will also save the Metro millions in terms of maintenance to roads and road infrastructure which is being systematically destroyed by the burden of road-based container traffic.”

Councillor Dean Macpherson and Economic Development Spokesman said, “The failure of the port to meet its operational requirements have huge impacts for the city of Durban. Most of the cities trade is derived from the port. It is only logical that if our port became more efficient, we could boost trade in the city and create more jobs. The cities response to these findings needs to be more urgent and more proactive. Durban faces serious competition from Richard’s bay and Maputo, left unresolved Durban could find itself with a very small economy within the next 10 years. The DA calls on all levels of Government to seriously engage with each other and Transnet before it is too late.”

Both Councillors Du Bois and Macpherson agreed that the Ethekwini Municipality must engage in urgent negotiations with provincial and national tiers of government over this issue as a matter of urgency. This matter has dragged on for to long. The Ethekwini Council must now act on the warnings about deficiencies in the port of Durban. With 40,000 jobs directly linked to the functioning of the port Durban cannot afford to find itself losing out to competition from Maputo and Coega as regards container traffic.

Issued by COUNCILLOR DUNCAN DU BOIS – 0832914913

COUNCILLOR DEAN MACPHERSON – 0837760202

DEMOCRATIC ALLIANCE ECONOMIC DEVELOPMENT AND PLANNING COMMITTEE ETHEKWINI MUNICIPALITY

Two arrested in Durban North for graffiti

Immediate Press release

Two graffiti vandals were arrested in the Durban North suburb of Virginia over the weekend. The vandals were apprehended by private security guards and handed over to SAPS Durban North where they were charged with malicious damage to property. The two suspects both aged 19 have had their case remanded until 2 November 2010 for further investigation. eThekwini Council have made available a private investigating firm to assist detectives to possibly charge the two suspects with further charges relating to other graffiti in the area that has been documented by the municipality.

Commenting on the arrests, Ward Councillor Dean Macpherson said, “These guys are not kids, they are criminals. It is simply not acceptable to have these sorts of thugs roaming the streets defacing property. The council had sent a very strong message that this sort of behaviour will not be tolerated when Phillip Botha was sentenced, clearly a harsher sentence including jail time needs to be looked at for these two suspects.”

“I simply will not accept the argument that this is “art”. These guys operate in syndicates with the sole intent to damage municipal and private property, instead of trying to improve our community they are destroying it. The question we need to ask, do we want these thugs living amongst us?”

The case has drawn wide interest from the community of Durban North with residents praising the action of the private security guards and SAPS for their willingness to seek a prosecution. Residents from the Virginia Community Forum have actively taken part in cleaning and painting over walls once graffiti vandals have put their mark on property in the attempt to discourage them.

Community Forum chairman, Mike Varty said, “I would like to express my thanks to the security guard and all back up personnel involved in apprehending these two individuals who were caught defacing our neighborhood with their graffiti. As a community we try to maintain our area to a standard we find acceptable and wherever there has been defacing of property it has been speedily removed but this is now just getting out of hand and thanks to the commitment of the guard I believe this can be stamped out if the two face the full might of the law and nobody backs down. “

Issued by:

Dean Macpherson

0837760202

See News24 link: http://www.news24.com/SouthAfrica/News/Two-arrested-in-Durban-for-graffiti-20101014

 

Thoughts on the current state of the tripartate alliance. Will it last?

The clear tensions between the tripartite alliance are being played out across all sections of society in South Africa at present. The battle for “strategic control” of the ANC and the alliance is what seems to be up for grabs. On the one hand you have COSATU who “brings” the votes and on the other hand we have the ANC who “uses” the votes with SACP standing by not sure what it should be doing, except providing free red shirts. This notion has crippled the alliance with each partner seeming to think it is more important than the other. The recent public service strike has been a classic case to show these tensions. During the strike, the real needs of the workers seemed less at stake than that of who would come out victorious at the end of the day. The battle lines were drawn between all 3 players in the alliance with none seeming to come out victors in the end. This sort of paralysis’s in government could spell bad news in the future. It would seem once again the “soul” of the ANC is again up for grabs. The problem with having a trade federation and communist partner in an alliance is that their views are extremely narrowed and focused on what is best in their views, nobody else’s view really matter. You then have the ANC who have their created policies which don’t always fit the social agenda and it is against this back drop that the real cracks in the alliance are forming. Without the ability of COSATU and the SAPC to be shaping ANC policy, this puts them at odds with their membership and this has transcended into what was seen in the civil service strike which was more about control of the ANC than really advancing the rights of workers. Throughout history we have seen how alliance partners in governments have sought to advance specific agenda’s and while this may work for a limited period, that partner invariably believes they know what is best and can therefore do a better job at governing the country than the democratically elected party can. What this spells for South Africa is simple, in the next 2-4 years, one or both members will break away from the alliance to fight an election under a “workers rights” party that will advocate the rights of workers above all else. While this notion might be noble, one has to understand that without the flexibility of unions, the scope to create jobs is difficult at best. The SACP is not much of a player in the political landscape of South Africa and so should be viewed as a “junior” partner with roughly 50 000 member, this will hardly make a dent in the political reshuffle in years to come. The real test for South African politics will be the shape of the pie graph when the split comes. How loyal will ANC members affiliated with COSATU and vice a versa be when one has to put their X on a ballot paper? This remains to be seen but what South Africa can look forward to is episodes of drama not seen since the premier of hit TV show Lost. In my opinion this can only be a healthy dose of reality for South Africa in the realisation that the one party state under the banner of the ANC is not good for investment, job creation and building an open opportunity society. In my opinion, I think South Africa and the world will welcome such a split in the view that narrow agendas are not driving the politics of the day but are being debated and contested through elections and the ballot box.