on outcome of Colloquium / Round Table - to influence municipal finance
management
8 May 2006
"First of all, we would like to express our hearty appreciation the entire
Executive Mayors, Municipal Managers and Chief Financial Officers (CFOs) of
Municipalities in the North West for the keen interest and the seriousness,
which they attached to the two day Colloquium/ Round Table organised by the
Department of Finance last week," said MEC Modiselle.
"The importance of sound financial management and accountability are surely
the only means by which we can improve upon service delivery in the North West
province and, this will of course depend on the support you give to the full
implementation of the Municipal Finance Management Act (MFMA)," said MEC
Modiselle.
Our mandate as the Department of Finance is to effectively and efficiently
manage the North West Provincial Treasury, and also encourage the principle of
accountability, so that the public service and all state-owned entities employ
funds and resources allocated to them to the benefit of all the people in the
province.
Our major focus should therefore be the improvement of financial management
as well as quality spending of the scarce financial resources at the disposal
of Government.
To ensure there is sustainable socio-economic development in all our
communities, the local levels of spheres of Government should take charge and
implement all the principles, rules and regulations enshrined in the MFMA
during their terms of office. Prudent management of financial affairs is the
only remedy to poor service delivery.
To succeed in managing the financial affairs of municipalities, we need to
overcome the following challenges:
* First, the challenge from rebuilding and strengthening the management
capacity of all those involved in financial affairs in our municipalities;
measures ought to be taken to restore confidence in the viability and
sustainability of municipalities. Through the implementation of these measures,
we will inevitably prevent financial losses and improve service delivery.
* Second, the challenges from the adoption of best international practice for
the benefit of people in the North West province; for when a country plunges
into a serious financial crisis, which I may say in the case of South Africa,
there is bound to be macro-economic imbalance and a crisis of confidence in the
system.
* Third, the challenges from the race to catch up with new technological
frontiers of commerce and electronic trading and financial crisis management;
for one of the setbacks in economic and financial development is the lack of
capacity in the use of technology.
"I hope that at the end of the Colloquium/ Round Table, you will have been
left with some food for thought for further deliberation and discussion amongst
yourselves. May I also take the opportunity to thank the organisers of the
Colloquium," concluded MEC Modiselle.
Enquiries:
Eben Cobblah
Tel: (018) 387 3584
Issued by: Department of Finance, North West Provincial Government
8 May 2006
Source: North West Provincial Government (http://www.nwpg.gov.za)
