16 August 2007
Prudent financial management and good governance are the main ingredients of
ensuring that all fourteen municipalities in Gauteng achieve clean audit
reports from the Audit General's (AG) by 2009.
This was a stern message by Gauteng Local Government MEC Qedani Dorothy
Mahlangu at the launch of the Municipal Public Accounts Committees (MPACs), the
equivalent of national and provincial Standing Committee on Public Accounts
(Scopa) at the Birchwood Conference Centre in Boksburg on Wednesday, 15 August
2007.
Speaking at the launch attended by among others, executive mayors, municipal
mangers, speakers and chief whips of various councils, Mahlangu said the MPAC's
members would examine the financial statements of municipalities and their
entities.
First of its kind in the whole SADEC region, country and province, the MPACs
will hold municipal authorities accountable on financial management and
expenditure matters on behalf of the council in which they will directly report
and also to ensure that they indicate when municipalities are either over
spending of under spending.
MPACs will also review public accounts and exercise thorough political
oversight and scrutinise financial statements of all executive organs of the
council.
These committees comprise different political parties within municipalities
with a blend of experienced councillors who served in the previous term and
those who are new but with knowledge on local government issues.
Mahlangu said it was important for the new committees to work closely with
AG's office to ensure greater accountability and learning from each other. She
promised that her department together with other entities involved will ensure
that members of MPACs are given full support in executing their duties.
"These are very important committees which will ensure greater
accountability and play an active political oversight role as far as municipal
finances are concerned. It is also pleasing that we are launching this MPACs
shortly after hosting the Summit on Municipal Finances that also looked at
devising new mechanisms of utilising municipal finances and resources
better."
"Municipal Public Accounts Committees will deal with issues raised by the
AG. They should not undermine political directives, government practices on
corruption and good governance. These committees should not be used as a
witch-hunt. They should ensure that proper procurement and supply chain
management are followed. We should not use them as witch hunts but as a
watchdog for councils and municipalities so that councils can spend public
funds correctly," said Mahlangu.
Mahlangu said the intervention made by the Department of Local Government in
partnership with the South African Institute of Chartered Accountants (Saica)
in municipalities was aimed at improving municipal finances in a bid to ensure
that municipalities achieve clean audit reports by 2009.
South African Local Government Association (Salga) Gauteng Deputy
Chairperson and Weston aria Mayor, Maserame Khumalo said MPACs would assist
municipalities in their oversight role in ensuring prudent financial management
and that budgets are aligned to Municipal Integrated Development Plans.
The Deputy Director-General in the Department of Local Government, Shan
Balton said that the launch of the MPACs was a step in the direction towards
achieving clean audit reports by 2009 in all Gauteng municipalities. He also
said that members of the MPACs will be given thorough training to ensure that
they execute their duties with no hassles going forward.
"MPACs will surely improve accountability by the executive to non-executive
and would ensure that A-Gs reports are thoroughly scrutinized interrogated and
act on the recommendations thereof."
"We have already started with training in other municipalities which is
aimed at fully capacitating MPAC members to execute their duties with diligent
and authority," he said.
Balton added that the establishment of MPACs, which are equivalent to the
Standing Committee on Public Accounts (Scopa) at local level, have been given
the thumbs-up by the Auditor-General and the Provincial Scopa and the
Association of Public Accounts in ensuring there's oversight and accountability
in municipalities.
For more information contact:
Themba Sepotokele
Tel: 011 355 5111
Cell: 082 490 9869
Daniel Ramarumo
Tel: 011 355 5701
Cell: 083 457 0317
Issued by: Department of Local Government, Gauteng Provincial
Government
16 August 2007
