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According to the municipal council, the capital investment framework which informs the
financial plan ofthe municipal area had been reviewed to determine whether the programmes
and projects were still relevant to address the community needs. The project budgets were
altered and aligned to present a more realistic service delivery framework. The Ulundi Local
Municipality (ULM) relies on external funding sources for 99% of its capital project
programmes. Since the beginning of2007 Financial Year, the municipal council has initiated
a campaign to sell its available residential and commercial plots to improve its cash flow
position. In order to avoid the cash flow crisis which the municipality experienced in 2005
budgetary process, drastic steps and measures to reduce its expenses and increase the income
flow were been taken.
Many factors emerged as undermining financial discipline in the Local Municipality. Among
them were corruption (two in five), mismanagement (just above one in five), poor planning
(just above one in five) unequal political representation (less than ten percent), lack of
transparency (less than five percent), unemployment (less than two percent) and non-payment
of services by residents (less than two percent). The question of the adequacy of
infrastructural facilities was also raised. About one in ten respondents affirmed an adequate
level of infrastructural facilities in ensuring sustainability. Meanwhile most responses (more
than two-thirds) saw the existing infrastructural facilities as inadequate in ensuring
sustainability. However, close to two in five felt that they had little or no insight into the
subject matter.
The Ulundi municipal management had a feeling that the ageing infrastructure leads to
diminished service delivery and may worsen in some years to come unless the trend of no
payment is reversed. The council has given serious consideration to the approval and
implementation of a proper debt collection and credit control policy in the 2007 Financial
Year. This tool is necessary to allow for the recovery of charges and fees levied against
consumers. The failure by the affluent of the community to pay for services is further
impacting negatively on the council's ability to implement free basic services and indigent
reliefto the poorest sector the community.
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