Programme Director
Members of the Executive Council
Executive Mayors and Mayors Chairperson of SALGA
Limpopo Speakers and Chief Whips present Director-General
HOD’s
The Office of the Auditor General Municipal Managers and CFOs
Ladies and gentlemen
We have converged here to reflect on the recently released Auditor General’s (AG) report on the financial status of our municipalities, and many other things concerning the status of local governance.
The Auditor General’s report has compelled us to convene this meeting so that together we can frankly and honestly discuss and reflect on what must be done to address all issues outlined in the report. The AG’s report paint a negative picture on the financial state of our municipalities and further calls for immediate improvement in order to avert collapse in certain respects.
There is no dispute that municipalities are best located to lead in delivering services to our communities. The provision of essential services falls within the sphere of local governments and therefore, strengthening municipalities is an administrative obligation that must be realised. The collapse of local government institutions will have dire consequences on the lives of many people.
It is worrying that some of the challenges highlighted in the report are not new. They have been raised in the previous audit reports, but nothing seem to have been done and therefore no improvement whatsoever. This cannot be accepted and therefore cannot be justified.
Program Director, most of our municipalities are still having the same challenges of inadequate skills on planning, budgeting, and monitoring of budget implementation.
Furthermore, there are also challenges in complying with relevant provisions in the areas of public finance management, municipal finance management, assets management and failure to spend, including spending on unfunded mandates. Contrary to our resolve that we should not have unnecessary expenditure, there is increase in unauthorised, fruitless and wasteful expenditure.
The inability to spend on Municipal Infrastructure Grant is another persistent challenge. Lack of forward planning and project management cause massive under-spending on infrastructure grant despite high levels of service delivery backlogs.
These are some of the issues that continue to undermine our efforts to build clean and accountable administrations.
Program Director, Waterberg Municipality continues to be a shining example and a living testimony of what compliance means. The municipality under the tutelage of Mayor: Councillor, Mogotlane, Members of the Mayoral Council and all Councillors has again acquired a clean audit report. This is a great achievement that must not only be acknowledged, but most importantly, celebrated for it gives us hope that the goal of clean audit is achievable.
We are very grateful to the Waterberg Municipal Manager, Chief Financial Officer, the executive management and the entire staff component of the municipality, for the good work done.
Program Director, The task of delivering services to our people require effective municipalities which are properly managed by qualified, accountable and committed personnel. Efficient and successful municipalities require dedicated and selfless political leadership that understand and appreciate the heaviness of the task at hand.
The provision of water, sanitation facilities, electricity and infrastructure development is at the centre of municipal mandates. As the African National Congress led government, we made a pledge to our people that clean running water will be provided to households. We also promised to build accountable and financial strong municipalities.
Our people also expect municipalities to play an important role in growing local economies in a manner that create job opportunities. Therefore, any failure of municipalities to deliver on their mandates undermines the entire system of government and creates a fertile ground for service delivery protests.
Although the size and location of some of our municipalities makes it difficult for them to attract skilled personnel, especially at the technical level, it is not a green light to perform badly. Every municipality must strive to observe all statutory regulations without any exception. Our understanding is that every municipality has a turnaround strategy which is meant to assist municipalities to deliver on their individual and collective mandates.
Each municipality was responsible to lead the process of drafting its turnaround strategy. Therefore, the turnaround strategies must be implemented without any excuse. Oversight and monitoring will be strengthened in order to assist municipalities to succeed in their responsibilities. We must build financially sound and technically strong municipalities in order to reduce the service delivery backlogs.
We have an obligation to capacitate our municipalities so that they can be relevant to our communities. We cannot over emphasise the importance of providing political leadership by Mayors and all councillors. You are required to provide strategic leadership to municipalities and our people expect you not to fail. You must never allow party political differences to disintegrate and degenerate your respective municipalities.
Municipal Managers are required by law to head municipal administrations. This means you are principal accounting officers. Therefore, we will not be wrong to conclude that you have a fair share in the current state of our municipalities, but together we must assist each other to correct the situation. If you have difficulties tell us, and we will make necessary interventions as provided for within the legal framework.
This meeting must be dominated by robust and honest discussions that will enable us to move together towards achieving our shared goals of bettering the living standard of our people. Let’s also be determined to fight corruption at all levels and offer our people a hope that together we can do more.
Thank you!
