Addressing councillors during a full council meeting on Tuesday, Nkwane said the local authority’s financial position remains under immense pressure, a development that is now affecting the implementation of planned programmes and services. He explained that revenue inflows have fallen far below expectations, making it difficult for the council to operate smoothly and deliver projects on schedule. According to Nkwane, the council had collected only P122,401.36 by April 30, 2026, against an approved annual revenue target of P9.93 million. He said the figure represents a mere 1.2 percent of the annual target, highlighting the magnitude of the financial challenges facing the council. Furthermore, he warned councillors that the weak revenue performance could negatively affect service delivery if urgent interventions are not introduced to improve collections. The chairperson, therefore, called for collective efforts and stronger strategies to boost revenue generation and stabilise the council’s financial position before the situation worsens further.
“This low performance reflects a combination of factors, including the slow commencement of revenue mobilisation activities, weak compliance levels, limited enforcement capacity, and low uptake of some of our services,” he said. “Operational challenges affecting our internally generated income streams have also contributed to this outcome.” Moreover, he said their financial position has been further affected by uncertainty surrounding the disbursement of the Revenue Support Grant (RSG), which remains our primary source of operational financing. He also revealed that continued dependence on external funding exposes the Council to liquidity pressures whenever grant inflows are delayed.
