The eThekwini Ratepayers Protest Movement (ERPM) has welcomed the municipality’s transparency in releasing figures concerning infrastructure surcharges collection totalling R669.5 million.

The municipality confirmed that the infrastructure surcharge will be extended into the 2025/2026 financial year at the current rate of R1.50 per kilolitre (excluding VAT) for water and sewage disposal.

In July 2022, the municipality added surcharges to every account for three financial years starting in 2022/2023.

On Monday, the municipality stated that it collected R623.9 million in Water and Sanitation Infrastructure Surcharge revenue between July 2022 and January 2025.

In response to eThekwini Ward 48 Councillor Michelle Lutchmen, the municipality stated it also collected an additional R45.6 million in interest earned, bringing the total funds available for infrastructure upgrades to R669.5 million.

The figures are:

-Water Infrastructure Surcharge: R387.7 million (2022/2023 & 2023/2024)

-Sanitation Infrastructure Surcharge: R236.2 million (2022/2023 & 2023/2024)

- Total Surcharge Revenue: R623.9 million (Water & Sanitation)

-Interest Earned: R45.6 million (July 2022 – January 2025)

Lutchmen said that the funds have not been allocated toward essential water and sanitation infrastructure upgrades across the city.

She said that the number of completed projects and their associated costs, as well as regional allocations (North, South, West, Central), are currently undergoing final audit verification.

The municipality stated that a detailed report will be made available to the public before the end of April.

“This will place an even heavier burden on the residents of eThekwini Municipality. The initial proposal was only intended for three financial years. Now the city has added an extra year for the surcharge, effectively turning it into a permanent revenue stream.

“This move is nothing more than a way to squeeze more money from already struggling citizens, all while failing to address the root cause of poor governance and financial mismanagement. Once again, the people of this city are being forced to pay for the municipality’s failures,” Lutchmen stated.

Asad Gaffar, ERPM chairperson, said the figure seemed low according to their calculations, adding that ratepayers would like to be informed as to how the money collected was spent.

He also lambasted councillors who could get access to the information for not taking up the ratepayers' plight.

Gaffar said the ERPM demanded accountability and oversight of infrastructure projects so that ratepayers get value for money.

“For now, we believe that they put out a figure to silence the public. We will look into the matter and possibly get the Auditor-General involved. We had sent a letter to the municipality requesting details on the surcharges previously but received no response. Councillors also need to ask pertinent questions.”

The municipality stated that the surcharge will ensure that the necessary funding for critical works is generated.

“Over and above the grant and internal funding sources, this surcharge will provide the unit with an additional funding source to facilitate the replacement of mechanical and electrical (M&E) assets, ensuring the sustainable provision of water and sanitation services,” the municipality stated.

Among the 27 projects listed are mobile and stationary alternators design/build/supply, wastewater pump stations, replacement of capital components of M&E equipment, Umlazi 2 reservoir, Hillcrest/Umbilo and Glenwood rehabilitation of flood-damaged infrastructure, and the Northern Wastewater Treatment Works rehabilitation.

The Bluff Ratepayers and Residents Association (BRRA) Vice Chairperson Allison Schoeman said residents are pointing out that they haven’t seen noticeable improvements on the ground.

“According to municipal reports, the plan was to accumulate roughly R1 billion over three years to jump-start upgrades. So far, the city has not spent the collected surcharge on any specific project – it remains in reserve. Why the wait? City officials claim they needed to build up enough funds to tackle big projects and also coordinate with other budget sources,” Schoeman said.

zainul.dawood@inl.co.za