Cash boost for Eastern Cape municipality

01 Feb 2016 | Admin Author

Local Government and Traditional Affairs MEC, Mlibo Qoboshiyane plans to transfer R200 million to the King Sabata Dalindyebo Municipality, to assist the administration in meeting its contractual obligations.

Notice of the transfer of the funds in terms of the Division of Revenue Act, has been published by the MEC in the Provincial Government Gazette.

Qoboshiyane says the money will be used to strengthen the capacity of the municipality in order to improve governance and administration.

It has to be refunded to the Provincial Revenue Fund over a period of three years.

Listing the measurable objectives, the MEC says they include the complete and accurate valuation of immovable and movable assets as well as “complete and accurate accounts”.

In addition, the municipality must put internal control systems in place and improve financial systems “including but not limited to the payroll system”.Further, the funds are to be used to implement a document management system; improve the oversight of council and other council structures; ensure the timely submission of “complete and accurate” monthly, quarterly, half yearly and annual financial reports and to achieve improved audit outcomes.

The MEC also wants to see the existence of administrative systems in place to improve governance and administrative processes, and capacity building and skills transfer programmes in place and implemented for the municipality’s Budget and Treasury Office.

The funds will only be transferred to the municipality once a business plan has been submitted and the conditions attached are accepted.

Qoboshiyane states that the reasons why the funds were not incorporated in the municipality’s equitable share of national revenue is to be found in Section 154(1) of the Constitution.

This requires that national and provincial governments must support and strengthen the capacity of municipalities to manage their own affairs and exercise their powers and functions.