The Nelson Mandela Bay municipality is once again considering insourcing contract workers, but this time it is has to do with meter readings.
The municipality has a contract with several companies, but this is due to expire at the end of the month.
A council decision to insource hundreds of security guards in 2017 backfired, costing millions of rand.
The cost of insourcing the security guards almost doubled and municipal properties were destroyed by vandals.
Insourcing is meant to save the municipality money but has had the opposite result.
The insourcing of the meter readers was debated at a budget and treasury committee on Thursday, but parties were divided on the issue, with the DA and ACDP vehemently opposing the move.
The ANC and EFF, however, said the proposal should instead be taken to the council.
While the proposal was shot down at the meeting, it will ultimately be up to the council to decide on the latest round of insourcing.
The city’s accountants have already warned that the cost of the insourcing would have to be covered by the ratepayer through an increase in their property rates.
The insourcing of meter readers was first mooted in 2018 by the EFF.
The party subsequently presented a motion of exigency, with the council agreeing to insource the meter reading function.
But it was only a year later that the item was brought back to the council for further deliberation.
The EFF called for the insourcing of meter readers working at the companies such as AS8/88, GG&G, Izizwe, Eyethu, Liyabona, Alex and Lelethu.
A report presented to the committee by finance head Selwyn Thys revealed that if the municipality went ahead and insourced meter readers, it would need nearly R30m in the next financial year.
The money would be used for the salaries of 84 meter readers, six drivers and administration staff.
Minibuses, office equipment and furniture would also need to be purchased.
Thys warned that the insourcing would jeopardise the municipality’s revenue stream.
“It is apparent that when the motion of exigency was tabled in the council meeting, the full scope of the meter reading value chain was not taken into account.
“There is currently insufficient budget to cater for the additional cost to insource meter reading.”
He said the council must consider the effect on property rates as any permanent expenditure must be properly budgeted for.
“Council must also consider the effect on the collection rate of the municipality which must always be greater than anticipated to keep the city’s financial position afloat,” Thys wrote.
This also warned that due to the high levels of crime in some Bay areas, the meter readers would have to be escorted by security personnel.
On Thursday, committee chair and DOP councillor Tukela Zumani said his view would be unpopular, but he was opposed to the insourcing.
“In 2018 a council decision was taken to insource the security guards, with good intentions. We can see now what that resolution has resulted in.”
He said the benefit of not insourcing meant companies managed their staff and ensured overtime was not abused.
“We are not going to employ people for the sake of employing them,” Zumani said.
DA councillor Malcolm Figg agreed with Zumani.
“The document is clear, the additional costs to the municipality are concerning because we already have constrained our wage bill.”
ACDP councillor Lance Grootboom said the move did not make sense as the city was already battling with inaccurate billing.
“This is a textbook exercise of what happened at safety and security when we insourced hundreds of people without any screening.
“We need to be very careful because we insourced people and we don’t even know if they have criminal records.
EFF councillor Pepsi James pushed for the insourcing to go ahead.
“I understand and it is clear we don’t have money, but this is about it our people.
“We also want stability as a municipality.
“Yes there are innovations out there, but I am begging this committee because if we want stability we need to insource the meter readers.”
ANC councillor Luzuko Peter suggested the report be presented to the council.
“I disagree with [Zumani]. The house is being too harsh on insourcing.
“If we judge it on the failures of 2018, that was the first stage of insourcing and mistakes were bound to be made.
“I think we must look at ways to correct these mistakes.”
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