Tariff hikes in Free State municipalities demonstrate that ANC has lost touch with reality

15 June 2021

The tariff hikes in Free State municipalities demonstrate that the ANC has completely lost touch with the financial reality of the Free State province and its people.

The Free State is currently under immense economic pressure and unrealistic tariff hikes in municipalities will only increase the financial pressure on residents. It will also result in more defaulting, which will exacerbate municipalities’ already dire financial situations.

In some municipalities, service rates and taxes are increased with much more than the current inflation rate, while residents are getting very poor service delivery under ANC rule.

Municipalities should have taken the realities of the rising levels of unemployment and the prospects of poor economic growth into account when they compiled their budgets. Merely increasing rates and taxes will not ensure the financial sustainability of municipalities.

Economic growth is what is needed and it can only happen in a more favourable economic climate with affordable rates and taxes. Thus, municipal rates and taxes must instead be lowered to stimulate the local economy.

In the meantime, the budgets of local municipalities, like Nala (Bothaville, Wesselsbron) and Moqhaka (Kroonstad, Renovaal, Steynsrus, Vierfontein, Viljoenskroon), are obviously election-budgets aimed at ensuring that funds are spent in the towns with the most potential ANC voters.

The municipal roads in these agriculturally driven towns are in a terrible condition. But instead of repairing the roads to bring about economic recovery, the ANC has opted to build stadiums.

In larger municipalities, like Metsimaholo (Deneysville, Kragbron, Oranjeville, Sasolburg), sewage and sanitation services are inadequate but tariffs are increasing with 6%. And in Matjhabeng (Allanridge, Hennenman, Odendaalsrus, Ventersburg, Virginia, Welkom), water tariffs are also increasing with 6% even though many residents frequently do not have water for days on end due to poor maintenance and the ongoing outstanding debt to Sedibeng Water.

It is clear that the paying residents of Free State municipalities are being punished for the ANC's inability to properly manage municipalities.

In the upcoming local government elections, voters will have to opportunity to stand with the FF Plus and send a strong message: The decline in the Free State must come to an end.

Statement issued by Armand Cloete, FF Plus MPL: Free State, 15 June 2021