COVID-19

Issued on the 12 June 2020

THE BITOU MUNICIPAL MANAGER, ADVOCATE LONWABO NGOQO,’S COMMENTS ON THE PASSING OF THE BUDGET BY THE BITOU COUNCIL

Following months of consultation with stakeholders, the Budget for the 2020/2021 financial year was tabled before Council at a Special Council meeting on the 11 June 2020.  The Council managed to pass the budget successfully at this meeting.

As previously mentioned, National Treasury mandated all municipalities to ensure that the budgets are aligned to the ongoing efforts to deal with the Covid -19 pandemic. The Bitou Council was able to successfully align its budget to the pandemic. The budget also took into cognisance of the following factors;

1. The existing economic conditions which has been severely affected by the Covid -19 pandemic and is currently in a downward spiral;
2. The growing unemployment conditions in the country and in our town;
3. The National Treasury’s Cost Containment regulations and measures;
4. The reduction of revenue,  largely due to the Covid -19;
5. Increase in the cost of basic services
6. The credibility and level of funding of the budget;  as well as
7. The fact that the budget had to be aligned to the Integrated Plan of the municipality.

All these factors were duly considered when the budget was developed. Therefore, the Bitou Council approved a budget that comprehensively responded to the above factors and more. The budget that was approved is cash backed budget. The economic impact on the town by COVID is currently unknown but the budget was compiled on the basis of negative impact on the economy. The recovery of revenue generated remains a key tool to make the budget funded and efforts will be made to recover revenue.

As the budget was developed an emphasis was placed on improving the collection of revenue. The Council’s Credit Control Policy was reviewed and some amendments were made to it.  

The Communications and Public Participation units are tasked with communicating and creating awareness amongst residents on the amendments in the Credit Control Policy.  Further to this, the Municipality makes a call to all unemployed residents with no income to apply be registered as Indigent Consumers; this will enable them to benefit from the subsidy put in place for indigent consumers.

In addition, those that have been severely affected by the impact of Covid-19, although they are employed, might have seen their income reduced can apply to be considered for relief within the Indigent Consumer framework.  

Once more, the Bitou Municipality has delivered a budget that is pro –poor. The budget is funded, credible, and rooted on the principles of good corporate governance. The budget is in line with National and Provincial Treasury’s directives as laid down in the budgeting framework. The cherry on top, is that this budget responds directly to the challenges posed by the Novel Coronavirus, Covid-19.

Issued By: Andile Namntu on behalf of
Advocate Lonwabo Ngoqo
strong>Municipal Manager of the Bitou Local Municipality

Enquiries: BITOU COMMUNICATIONS AND CUSTOMER CARE SECTION. Tel: 044 501 3006, Mobile: 0767 348 483,
E-mail: anamntu@plett.gov.za; Communications, Department: Corporate Services, BITOU MUNICIPALITY