South Africa: World Cup spending puts PE in red

A dire cash flow shortage in Nelson Mandela Bay, the sprawling municipality that includes Port Elizabeth, Despatch and Uitenhage, has resulted in an R800 million cut in spending on key service delivery projects in the municipality - including a project to put an end to the undignified bucket system. The council’s financial woes are mainly due to World Cup spending that was not recouped, and a drop in the revenue collection rate.