03/06/2026
*3 June 2026*
*15:40*
*Ugu District Municipality 2026/27 Budget*
Good afternoon residents,
Please take note below of correspondence regarding the Ugu District Municipality budget.
Regards
Cllr Dana Daniels
The Democratic Alliance (DA) in Ugu District strongly rejects the newly passed municipal budget, which fails to respond meaningfully to the financial and service delivery crisis facing the municipality.
The municipality’s finances are in crisis, while communities across the district continue to suffer the consequences of collapsing infrastructure. Residents are subjected to unresolved water leaks that leave clean drinking water flowing into the streets, prolonged water outages, and sewage spills contaminating roads and beaches.
This contributes to water losses that now stand at an alarming 37%, costing the municipality millions annually. Unpaid creditors have ballooned to more than R1 billion, whereas Treasury Regulations require all creditors to be paid within 30 days. Debtors, or uncollected debt, have increased to more than R2 billion. At a time when Ugu residents are battling collapsing infrastructure, water interruptions, sewage overflows, and growing financial instability, the Council should focus on restoring financial credibility and rebuilding public trust.
The DA maintains that:
- A tariff increase of 13.5% is totally unacceptable and unsustainable in this economic climate. Worse is the fact that basic charges on water and sanitation will also increase by 13.5%.
- If the thousands of illegally connected businesses and residents are legally connected, a much smaller tariff increase would be necessary, with no, or at most, an inflation related increase to basic charges.
- Public funds must be spent responsibly, transparently, and within cost-containment regulations.
- Infrastructure, service delivery, and financial recovery must take priority over political theatrics and unnecessary spending on outside entities. The South Coast Tourism and Investment Entity should be given back to the local municipalities or privatized, as their funding model is a serious drain on Ugu finances.
- Accountability and consequence management are essential if public confidence is to be restored.
- Alternate funding models must be prioritized, and public-private partnerships must be formalized where capacity is non-existent.
The people of Ugu deserve leadership that leads with discipline, integrity, and respect for every rand collected from customers.
The DA will continue to fight for responsible governance, transparent budgeting, and a municipality that works for all its residents.
Media Enquiries
Councillor George Henderson
DA Ugu District Caucus Leader 082 7714 276
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