/ 26 May 2004

DA rejects new Cape Town budget

The Democratic Alliance on Wednesday rejected the City of Cape Town’s new budget, because it feels the Integrated Development Plan (IDP) process is flawed and many legal requirements have been ignored.

”There are huge legal questions around the budget,” said DA councillor Belinda Walker.

She said the African National Congress-New National Party alliance insisted on voting on the budget, which has 19 separate sections, as a whole.

Walker said there are ”huge chunks” the DA supports, but others it does not.

Earlier on Wednesday, the City of Cape Town unveiled details of its 2004/05 budget, hailed by some as a paradigm shift because of its alignment to the IDP.

The operating budget of R10,6-billion increased by 6% to R11,3-billion, while the capital budget remained at R1,5-billion.

”The breakthrough budget … is [one that is] balanced, that is sound and based on the principles of sustainability and investment in our medium-and long-term future,” said city Mayor Nomaindia Mfeketo at a media briefing.

Mfeketo said the budget reflects the city’s alignment to the IDP containing the city’s seven key strategies for responding to the socio-economic needs of its citizens.

The IDP’s strategies include shifting urban growth to the urban core, improving existing settlements, creating sustainable jobs, building strong communities and improving access and mobility.

In a statement issued by the DA’s city council caucus after the release of the new budget, the DA charged that during its reign, the IDP was developed within an ”open governance system with proper checks and balances”.

Now, however, this system has been replaced by a ”closed and centralised” ANC-led mayoral committee, meaning that the council and public have not seen the legally required performance review, comparing performance with targets last year.

”The new IDP is not based on this review as the law demands [and] statutory key performance indicators and performance targets are missing from this IDP,” read the statement.

The DA adds that the statutory annual audit report on the performance audit was also not tabled at council. — Sapa

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