Kgatleng District council over-spends by P15m
Kgatleng District Council has experienced an over-expenditure of over P15 million by February this year.
Council Chairman Daniel Molokwe said as of February 29, 2024, their expenditure stood at P172, 586,288.51 against the projected 11-month expenditure target of P157, 153,953.08, resulting in an over-expenditure of P15, 332,335.43. He stated that the overspent votes can be attributed to several factors.
According to Molokwe, Personnel Emoluments saw overages due to the 5 percent salary increase, narrowing of the pay gap between the Deputy Chairperson and Councillors' salaries, and overtime allowances.
“Running Expenses exceeded budgets for utilities, vehicle repairs, fuel, and lubricants. Establishment Expenses were over-expended, particularly for staff travel, legal advice, members' travel, civic entertainment, and Village
Development Committee allowances. Special Expenditure votes like relief for destitute, workshops, seminars, security services, remote area projects, and refuse contracts also went over budget,” said Molokwe when addressing the Full Council meeting in Mochudi this week.
The council chairman explained that the root causes for the said expenditures included budget cuts, outstanding salary arrears, payment of prior years' overtime, unbudgeted activities like ministerial trips, and a shift from virtual to physical meetings without appropriate mileage budgeting.
He revealed that on the income side, as of February 29, 2024, “our collections amounted to P5,184,258.87 against the 11-month target of P8,603,485, representing an under-collection of P3,419,226.13.”
He told the full council meeting that while certain sources like insurance commissions, miscellaneous income, plan perusal fees, and fire services exceeded targets by P326, 364.76, areas like matimela fees saw no collections due to stalled processes. Molokwe indicated that plant hire income suffered from frequent equipment breakdowns, and interest on investments was impacted by fund unavailability for short-term placements.
He added: “ultimately, we are operating at a deficit of P15, 332,335.43 in over-expenditure, a situation likely to worsen as expenditures continue until the fiscal year ends in March 2024. As of March 4, 2024, our recurrent budget balance stands at P2, 323,689.39, It is evident that our persistent challenges lie in our inability to raise sufficient revenue.”
He told the councilors that in these fiscally constrained times, they must optimise resources, maintain vital services through cost-saving innovations, and remain steadfast in their commitment to achieving their intended goals for the community they serve. "In my last deliberation I have stated the importance of increasing our revenue source, and by also empowering our investment arm, the KDDF," he said.
He explained that the intensions of an independent investment arm and creation of the company was to create a large room for revenue increase of the council. He urged the councilors to not forget the purpose of the creation of the investment arm.
“We expect and want to see a notable shift in mindset and priorities within the District, both among public officers and the public at large. President, Mokgweetsi Masisi, has emphasised the need for a reset in priorities. This reset aims to break barriers, remove hurdles, and build momentum toward Botswana's goal of becoming a high-income country,” he said, adding that the focus is on people-centric outcomes, making citizens the primary beneficiaries of policy implementation, and immediate action is crucial.
He challenged the councilors to adopt a new mindset that seeks smarter ways of implementing plans on time and within budget, and delivering right services to the eligible individuals at the right time.
“In accordance with the vision of the government, we foresee that collectively, we will witness renewal at the local level in areas of public safety, poverty eradication, local economic development, housing, agricultural production, tourism, and the hospitality sector,” said Molokwe.