The national executive committee of the South African Local Government Association (SALGA) has expressed concern about weaknesses in municipal credit control and debt collection mechanisms in councils across the country.
The national executive committee of the South African Local Government Association (SALGA) has expressed concern about the inadequate municipal credit monitoring and debt collection systems of municipalities in the country.
The dissatisfaction follows the release of the Consolidated General Report 2020/21 on the results of the local government audit last week, which contained alarming revelations from Auditor General Tsakani Maluleke.
The SALGA NEC agreed to the terms last week at a meeting in Kimberley, Northern Cape.
The rally came after a series of interactions with provincial municipalities on June 21 and 22, 2022.
In light of the release of the AGSA’s report on the findings of municipal audits, the NEC met with mayors, chairmen, council whips, municipal managers and chief financial officers of municipalities across the province.
In a statement, SALGA said member municipalities across the province engaged with the NEC in a way that allowed for frank discussion and provided deep insight into the pressing challenges facing cities and their residents.
“As elsewhere in the country, the province continues to face difficulties in managing and maintaining the coalition government at the local government level. Twelve municipalities with multi-party governments were created following local elections in November 2021.
“SALGA, working closely with the Dullah Omar Institute, has drafted a Coalition Government Framework which provides practical guidance to political parties and councilors on forming and managing coalitions in local government” in response to the growing trend of coalition governments since the 2016 Local Government Elections.
Municipalities are encouraged to learn from the framework, which offers “practical guidance on how political parties can manage such coalitions in ways that ensure municipal sustainability and achieve the best outcomes for local communities,” even if he hasn’t been officially adopted, according to SALGA.
The group claimed that the financial stability of cities is severely affected by their inability to control their budgets and collect taxpayers’ money.
Tebogo Mosala, a spokesperson for SALGA, said it is concerning that only five municipalities in the Northern Cape have carried out clean audits while others have received unfavorable assessments.
“Some municipalities across the province are having difficulty submitting their financial statements on time, and this may just as well be a testament to the services these municipalities provide and their ability to earn the faith and trust of the public.
According to her, “The NEC has advised municipal officials across the province to reflect on the state of local financial performance, while addressing the root causes of chronic difficulties that require accountability and consequence management.
She said that SALGA would continue to provide vital interventions like the Municipal Audit Support Program (MASP) and the training and skill building programs for councilors with the aim of promoting financial management capacity building in the city. ‘industry.
separation of power and function
SALGA said Sol Plaatje Municipality’s decision to appoint its Chief Financial Officer (CFO) as interim City Manager emerged as a major issue during the interaction between NEC and Cape Town Municipal Leaders (MMs). North.
Under SALGA’s mandate, which is to provide advisory services to its member cities, the group wrote to the mayor of the municipality of Sol Plaatje and suggested that the appointment be revoked. It is impossible for the CFO and the City Manager to be the same person.
“In the interest of oversight, accountability and transparency, the Municipal Financial Management Act (MFMA) defines and separates the roles and responsibilities of mayors, council members and civil servants, and measures taken by the municipality were inconsistent with the financial policy principles of governance set out in the Act.