City loan to finance projects makes sense

The neglected state and lack of amenities and facilities within the City of uMhlathuze is a constant source of irritation for residents, who often voice their dissatisfaction via letters and articles in this newspaper and online.

For that reason, the recent report indicating the city’s intention to secure a R310-million loan for infrastructure development has been warmly welcomed.

At the outset, it should be understood that the matter of a municipality applying for cash loans is nothing out of the ordinary.

As with all businesses, cash flow is vital, and as projects lie in waiting subject to available budget funding, so the ultimate costs keep escalating.

Especially when designs are complete and tenders have been awarded, delays in implementation of projects serve no useful purpose, inhibit progress and frustrate residents and the business community.

There are numerous projects waiting in the wings and the city’s Chief Financial Officer included among them electricity installation, water and sanitation, road infrastructure, the Meerensee Steel Bridge, taxi ranks, municipal satellite offices and financial and assets systems.

Last week’s City of uMhlathuze Exco agendas were brimming with reports of infrastructure development and tender allocations, most of it linked to direct improvement of the quality of life of its inhabitants.

All this is against a backdrop of a general downturn in the country’s economy, and since one does not know how future Municipal Infrastructure Grants from government may be trimmed, full use must be made of every available avenue – such as the huge loan – to do now what must be done.

At the same time, the city is engaged in cost-cutting exercises that will also help to balance the books.
Wasteful expenditure becomes even more of a no-no in these tough times.