GCC struggles with budget constraints
Tsaone Basimanebotlhe | Monday June 23, 2025 06:01
The city council also faces inadequate city lighting, storm water drainage issues and poor project implementation.
Addressing councillors on Wednesday, Deputy Mayor Mankie Sekete emphasised the importance of unity and collaboration in overcoming the challenges.
“We must continue to engage one another, share ideas, and work collectively towards solutions that benefit all residents of Gaborone,” she urged.
She highlighted the Council's current financial standing, stating, “It would be improper not to inform you about the council’s financial position.”
The 2025-2026 financial year budget stands at approximately P545.2 million, which includes a Revenue Support Grant (RSG) of about P375.2 million.
Despite this allocation, Sekete said cashflow challenges persist and as a result, she warned that spending cuts are inevitable.
“This therefore means a reduction in spending is imminent. We must also strengthen our cash flow monitoring and prioritise our activities accordingly,” the Deputy Mayor said.
Nonetheless, as of the end of May 2025, total expenditure stood at approximately P73.4 million, representing just 13.5% of the approved annual budget.
Sekete added that total collections—including the Revenue Support Grant—stood at approximately P117 million.
Despite this, she revealed that the Council is currently operating on an overdraft of P45 million, which remains insufficient to meet its financial obligations.
Worryingly, she cautioned that if the current trend continues, the council may end the financial year with a budget deficit, largely due to the high levels of debt it is carrying.
While on the issue of projects, the deputy mayor said it is indeed a concern that they find themselves still implementing projects from the previous financial year.
Notably, Sekete revealed that this does not only hamper progress but also affects the council's ability to respond effectively to the needs of the community.
“There is indeed a need to review our project management processes thoroughly focusing in all aspects including project teams to identify bottlenecks hindering implementation.
“This will help us streamline operations and establish workflows that are more efficient,” she added.
Moreover, she said it is disheartening that construction of two classroom blocks in Boikhutso, funded though backlog eradication programme in 2023-24 has not yet commenced due to some litigation.
She, however, expressed hope that the litigation will be resolved this year so that the classrooms can be built, thereby addressing issues of congestion in classrooms in the school.
Meanwhile, on Roads Fund Levy, she did not hesitate to express her displeasure that the 50% of the 2024/25 financial year which was allocated to greater Gaborone for upgrading and maintenance of roads including illumination has not been released to the district.
In addition, she said the status of roads infrastructure continues to deteriorate.
In that regard, she pleaded with interested private entities or potential investors to come forth and collaborate with the council in developing the city.
She also revealed that it has come to her attention that they have received funds amounting to P4.3 million from Roads Fund Levy for 2025-26 financial year.
She added that the fund will be used for cleaning and desilting of culverts for P700,000.00, maintenance of street lights P2 million and pothole patching for P160,000.00.
On the other hand, she said through their recurrent budget, they continue to do pothole patching across the city.
She said to date, 13,093 square metres have been covered at a cost of P3.7 million.
Moreover, she said they still need funds for maintenance of roads, 'as we all know that they are in an undesirable state.
“We will continue to advocate for more funding towards this aspect,' she said.
On other issues relating to debts, she said it is with genuine concern to inform the council about the significant debts that the council is facing, which have accumulated over the years since the inception of the Self Help Housing Agency (SHHA) programme.
She said numerous defaulters who have not fulfilled their obligations relating to building material loans, the turnkey scheme, state land purchase prices, and service levy fees have worsened the situation.
Alarmingly, the GCC is even struggling to collect a small monthly amount of P20.00 for service levies.
“To be precise, the loans are in amounts of P3, 923,041.58 for State land debtors; P6, 007,893.86 for service levy; (P9, 408,051.75) for building materials whilst turnkey stands at P9, 275,096.80. It is crucial to note that State land debts are expected to be settled within two years,” she revealed.
Additionally, she said the last plot allocations were made in 2021 at Block 10, which means the payment duration for all beneficiaries has long expired.
On issues of health where clinics were transferred to councils, the deputy mayor said it is very unfortunate that the relocation came at a time when councils are in a dire crisis of financial constraints and the clinics come with serious challenges some of which needs urgent attention.
She said they are informed that P13.2 million has been released to the council for primary health services expenses against a total planned budget of P28.4 million and this translate to a shortfall of P15.2 million.