GPT urgently interacting with COGTA to assist struggling municipalities

Gauteng Treasury 2019/08/11 - 22:00



I​n the tabling of the 2019/20 Budget Vote of Gauteng, MEC for Finance and e-Government, Ms Nomantu Nkomo-Ralehoko highlighted the plans to improve local government finances.

To date, most of Gauteng municipalities are experiencing severe challenges and paramount to these trials include financial challenges. These hiccups are a result of low collection rate and inadequate financial management capacity.

MEC Nkomo-Ralehoko emphasised that Gauteng Provincial Treasury (GPT) is urgently interacting with the Department of Cooperative Governance and Traditional Affairs (COGTA) in the province to develop coordinated action plan and to implement Section 154 and Section 139 interventions to assist struggling municipalities.

"I have already met and discussed with the Mayors of Emfuleni Local Municipality and Rand West District Municipality to get an update on the progress made in respect of the financial recovery plans for both municipalities," she said.

MEC also added she would like to do a comprehensive review with cost benefit or results analysis of GPT's advisor programme, in that way GPT is extending to municipalities particularly those in distress and in financial difficulties.

As it stands, the advisor programme must have quantifiable and performance measurable deliverables in order to make progressive qualitative change in the assistance provided and management of municipalities debts to Eskom and Rand Water as the continue to keep lights on and water as well as sanitation running.

GPT and COGTA must work with municipalities to ensure that they meet their constitutional mandate and produce credible IDPs and their sustainable budgets, whose programmes and projects are funded, as well as aligned to strategic priorities and linking directly to service delivery to the people.

"We have allocated R72 million to Municipal Financial Governance to support all municipalities. This is in line with our objective to ensure that local government works better to provide quality services to communities," added MEC Nkomo-Ralehoko in her budget vote.


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