The local authority was already faced with an over-expenditure of P6.629, 527 by the end of last year, meaning that it has to rely on alternative sources of funding to continue providing services to the community. SPTC chief finance and development planning officer Billyboy Siyabatho told Mmegi that the situation forced the council early this year to request for additional funding for utilities and staff salaries for February and March. They were granted P15 million, of which P10 million was spent on salaries for the two months.
He explained that they overspent on utility bills, fuel and lubricants, security services, staff travel, subsistence allowances as well as overtime. The council also saw under-collection of P4.5 million on rates and service levies.The fact that council did not make any interest on investment this year due to cash-flow problems also added to its serious financial woes. Siyabatho revealed that they had planned to generate revenue through licence fees, but the new policy does not allow for annual renewal of licences. This meant that they collected a much smaller amount than they had anticipated."I do not foresee the ministry bailing us out again. If we do not implement the privatisation masterplan, then we are headed for a disaster. Each employee must strive to reduce costs in his/her place of operation. If we do not change the mindset, then the council's financial situation is far from over," he warned.
