Latest news with #MFMA
The Citizen
13-06-2025
- Business
- The Citizen
ELM cuts wasteful spending, earns praise for financial reforms
Emfuleni Local Municipality (ELM) won a third-place runner-up award for managing to reduce the 2023/24 financial year's unauthorised, Irregular, Fruitless, and Wasteful Expenditure (UIFW) by 44%. The South African Local Government Association (SALGA) 3rd Annual Municipal Audit Awards were held in Johannesburg on May 30. The award signifies tireless work done by ELM towards attaining a clean audit by reducing financial transactions that violate the Municipal Finance Management Act (MFMA) and other procurement legislation. According to ELM spokesperson Makhosonke Sangweni, for the municipality, the award is not just an accolade, but an encouragement to improve financial management for progressive audit outcomes and service delivery. Reflecting on winning the award, Municipal Manager April Ntuli said ELM is proud to be considered part of municipalities that are committed to financial sustainability and the provision of improved services for consumers. 'I would like to thank the council and its committee for taking a bold decision to deal with all historical UIFW that was accumulating yearly and hampering service delivery for the people of Emfuleni. 'Notwithstanding the financial situation confronting the municipality regarding the high rate of unemployment and the impact it has on payment for services and the overall service delivery, ELM remains committed to being transparent and prudent on how it spends money meant for service delivery programs,' said Ntuli. In a statement, Sangweni said the municipality is aware that the community has lost trust in us and will only be happy when the award is supported by an improved commitment to service delivery. 'Part of the service delivery challenges we have is that of fleet; to mitigate this, the municipality has embarked on a project to improve fleet availability through leasing. This will assist with securing a significantly higher number of vehicles as opposed to outright purchasing,' he said. 'To ensure that the SALGA award is not in vain and that we perform better in the next financial year, the municipality is currently rolling out the installation of electricity meters and concluding the debt rehabilitation campaign in high hopes of improving revenue collection. The municipality is calling on all account holders to pay for services to improve the quality of life in Emfuleni,' he added. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
The Citizen
12-06-2025
- Business
- The Citizen
ELM bags third runner up from the SALGA AND CIGFARO municipal awards
ELM bags third runner up from the SALGA AND CIGFARO municipal awards VANDERBIJLPARK – Emfuleni Local Municipality (ELM) won a third-place runner-up award for managing to reduce the 2023/24 financial year's unauthorised, Irregular, Fruitless, and Wasteful Expenditure (UIFW) by 44%. The South African Local Government Association (SALGA) 3rd Annual Municipal Audit Awards were held in Johannesburg on May 30. The award signifies tireless work done by ELM towards attaining a clean audit by reducing financial transactions that violate the Municipal Finance Management Act (MFMA) and other procurement legislation. According to ELM spokesperson Makhosonke Sangweni, for the municipality, the award is not just an accolade, but an encouragement to improve financial management for progressive audit outcomes and service delivery. Reflecting on winning the award, Municipal Manager April Ntuli said ELM is proud to be considered part of municipalities that are committed to financial sustainability and the provision of improved services for consumers. 'I would like to thank the council and its committee for taking a bold decision to deal with all historical UIFW that was accumulating yearly and hampering service delivery for the people of Emfuleni. 'Notwithstanding the financial situation confronting the municipality regarding the high rate of unemployment and the impact it has on payment for services and the overall service delivery, ELM remains committed to being transparent and prudent on how it spends money meant for service delivery programs,' said Ntuli. In a statement, Sangweni said the municipality is aware that the community has lost trust in us and will only be happy when the award is supported by an improved commitment to service delivery. 'Part of the service delivery challenges we have is that of fleet; to mitigate this, the municipality has embarked on a project to improve fleet availability through leasing. This will assist with securing a significantly higher number of vehicles as opposed to outright purchasing,' he said. 'To ensure that the SALGA award is not in vain and that we perform better in the next financial year, the municipality is currently rolling out the installation of electricity meters and concluding the debt rehabilitation campaign in high hopes of improving revenue collection. The municipality is calling on all account holders to pay for services to improve the quality of life in Emfuleni,' he added. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
IOL News
04-06-2025
- Business
- IOL News
Midvaal Municipality shines at Salga audit awards with five prestigious accolades
Peter Teixeira, the mayor of the top performing local municipality, Midvaal. Image: Timothy Bernard / Independent Newspapers The Midvaal Local Municipality has won big at the SA Local Government Association (Salga) annual municipal audit awards for the Gauteng province. During the ceremony held over the weekend at the Premier Hotel near the OR Tambo International Airport, the association acknowledged municipalities demonstrating excellence in financial management. The municipality again emerged as a top performer and scooped five prestigious awards recognising its exemplary performance. According to Midvaal spokesperson Idah Satikhe, the event is held annually to recognise and celebrate municipalities for their exemplary financial management and adherence to the Municipal Finance Management Act (MFMA). Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ The municipality was honoured for ensuring that accountability, as well as swift consequences for transgressions and poor performance, were ensured for the 2023/24 financial year. Its second award was for submitting quality annual financial statements and annual performance report, with no corrections made during the audit in 2023/24. In addition, the municipality paid service providers within 30 days for the 2023/24 financial year, and in its municipal capital grants service delivery for local municipalities, it achieved a 99.2% spending rate. Midvaal also obtained a clean audit, which highlighted areas for improvement in 2023/24. 'These awards are a testament to Midvaal's commitment to good governance, transparency, accountability, and long-term financial sustainability,' Satikhe said. She added that the municipality will continue to shine as a beacon of hope, demonstrating that good governance is possible and exemplifying what a caring, compassionate and agile institution looks like. At the 2022/23 Salga municipal awards, Midvaal also won the best overall municipality in Gauteng for its performance. Midvaal also had zero debt for Eskom and Rand Water, which also awarded it the Blue Drop Award for 2024. The National Department of Water and Sanitation also honoured Midvaal with a Green Drop for Sanitation Wastewater Treatment, while the Chartered Institute of Government Finance Audit, and Risk Officers gave the municipality its Clean Administration Award for 2024. In July last year, Midvaal received the Best Overall Municipality award based on its incredible performance, which is based on its extensive key performance indicator assessment, which is audited quarterly. Midvaal has also achieved 12 consecutive clean audits from Auditor-General South Africa between the 2013 and 2024 financial years.
IOL News
02-06-2025
- Business
- IOL News
MEC Rodgers to implement Cash Management System (CMS) for municipal financial stability
KwaZulu-Natal Finance MEC Francois Rodgers. Image: KZN Treasury Facebook FINANCE MEC Francois Rodgers is o a campaign to ensure that municipalities in the province are financially stable and capable of delivering services to their communities. The Department pff Finance announced on Monday that starting in June until December 2025, MEC Rodgers will lead the implementation of a Cash Management System (CMS) at seven municipalities in KZN. One of the municipalities set to benefit from this initiative is the Impendle Local Municipality. It was revealed recently that the municipality failed to pay wages and benefits in full and on time. This situation has raised alarm among employees, who are concerned about the impact on their livelihoods and the municipality's ability to manage its financial obligations effectively. The CMS aims to resolve a myriad of financial management challenges at the local government level, including: Implementation of debt collection and credit control policies. Overspending. Management and utilisation of conditional grants. Ultimately, the department said, CMS aims to improve service delivery, ensure timely payments to service providers, and reduce budget deficits at the local government level, among other initiatives. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ It said this week, MEC Rodgers will convene a high-level gathering involving Mayors, Municipal Managers, Chief Financial Officers, and Project Champions. The targeted municipalities for the implementation of the CMS are: Ugu District. Richmond. uMngeni. Nkandla. iMpendle. uMfolozi. Ulundi. KZN Treasury is constitutionally mandated to monitor as well as support the financial functions at municipalities. The seven municipalities were identified as potential beneficiaries for the CMS after assessments by the KZN system may be extended to other municipalities based on assessments. MEC Rodgers stated: 'KZN Treasury is empowered by section 5 of the Municipal Finance Management Act (MFMA) to perform oversight, monitor the financial functions, as well as to provide technical support and guidance to assist municipalities by instilling effective financial management practices.' 'The team at KZN Treasury and I are determined to act in accordance with our constitutional obligations so that we may succeed in the mission to establish an ethical and capable state. Municipalities are the closest sphere of government to communities. KZN Treasury is determined to empower and create capacity at municipalities as part of its mandate,' he added. THE MERCURY
IOL News
17-05-2025
- Business
- IOL News
Serious irregularities found in Msunduzi Municipality's management
Msunduzi Local Municipality has come under the spotlight after the Auditor-General South Africa presented the local government audit outcomes of the Municipal Financial Management Act (MFMA) to the KZN Legislature-Standing Committee on Public Accounts (SCOPA) and the Portfolio Committee on Cooperative Governance and Traditional Affairs (Cogta). Image: Doctor Ngcobo Independent Newspapers The Auditor General of South Africa (AGSA) found several problems with projects in KwaZulu-Natal municipalities more especially the Msunduzi Municipality. The AGSA looked at 15 infrastructure projects in the eThekwini, Msunduzi, uMhlathuze, KwaDukuza, Okhahlamba and uMkhanyakude municipalities. The AGSA said there were five new projects and 10 projects where they did follow-ups on the prior year findings and continued auditing the project as part of its life cycle. Nomalungelo Mkhize, AGSA Business Unit Leader in KZN, presented the local government audit outcomes of the Municipal Financial Management Act (MFMA) to the KZN Legislature-Standing Committee on Public Accounts (SCOPA) and the Portfolio Committee on Cooperative Governance and Traditional Affairs (Cogta) on Tuesday. In the Msunduzi Municipality (MM), the AGSA found: Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ MM did not earn revenue from landfill sites because the weighbridge digitiser at the municipal landfill site had been out of order for six months in 2019-20. Vehicles entering the site were not weighed and, therefore, there was no record of tonnage deposited. MM made salary payments from December 2016 to July 2019 to an employee who never reported for duty from their appointment date. The AGSA stated that the municipality received no services in return for the payments made. MM did not take reasonable measures at the New England landfill site to prevent pollution or degradation of the environment from occurring, continuing or recurring. The MM was non- compliant with the National Environmental Management Act MM failed to implement credit control and debt collection policy by not disconnecting or restricting services, nor arranging debt recovery with consumer debtors. This led to significant unpaid debts, resulting in the write-off of some consumer debtors as bad debts in the 2020-21 financial year. In 2021-22, prepaid electricity consumers with prepaid meters did not purchase electricity, and management did not address this due to the lack of timely internal audits to identify tampered or bypassed meters. The AGSA stated that the non-compliance may have resulted in a financial loss for the MM MM awarded a contract for constructing the Copesville Reservoir in February 2020, set to finish in November 2021. Due to poor planning and project management, the project was delayed by 22 months, incurring extra costs without changing the scope of work. The AGSA stated that the project is still incomplete at 95%. the accounting officer paid scarce skills allowances to certain employees without evidence of eligibility or an approved policy. Despite a council resolution to stop these payments, they were reinstated in 2023/2024 without prior approval. The accounting officer has not facilitated recovery or approval processes for these allowances, nor approved the related policy. MM municipality failed to collect revenue that became due in December 2019 from a service provider for the disposal of timber in terms of the service level agreement. Anthony Waldhausen, chairperson of the Msunduzi Association of Residents,Ratepayers and Civics (MARRC) said they noted the AGSA report and they were aghast at the material irregularities at the revenue not billed at the landfill site. Waldhausen said many residents complained about the situation at the landfill site and how they experienced delays to enter the landfill site. He said most left their refuse outside the landfill site out of frustration. 'It is the norm at the municipality where most of the municipal equipment and vehicles are never repaired and maintained. This shows that the municipality is completely dysfunctional. The other irregularities reported was that of salary paid to a manager that never reported for duty for five years. This is a dereliction of duty by the municipal manager to not address irregularity in time. This is gross negligence and poor consequence management against the manager,' Waldhausen said. Waldhausen said every effort of intervention to improve the situation at the municipality is not working. 'Municipal staff are unprofessional and unethical and this behaviour needs to urgently be addressed by the current acting municipal manager. They should recover the money for the past five years even if it means attaching the manager's pension. We as residents cannot continue to pay for poor service delivery and unethical municipal staff,' Waldhausen said. Anthony Waldhausen is co-founder and chairperson for the Msunduzi Association of Residents, Ratepayers and Civics (MARRC). Image: Supplied
