Mpumalanga premier aims to support local municipalities
The sitting confirmed that 17 municipalities are in rural areas and are being allocated low budgets.
The Mpumalanga premier, Mandla Ndlovu, has taken action to address the financial struggles faced by municipalities in the province. This after the recent sitting of the Premier’s Co-ordinating Forum (PCF) at the Ehlanzeni District Municipality Council Chamber.
Members of the forum, including MECs, mayors and provincial department heads analysed the financial state of municipalities, revealing contributing issues that include loss of revenue due to water losses, high employee costs and revenue collection challenges. Municipalities are a vital cog in service delivery and the first point of contact for communities. Each municipality is allocated an annual budget to cover operational and capital costs in its jurisdiction.
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It was noted at the sitting that most of the 17 local municipalities in the province have low budget allocations and revenue bases, due to Mpumalanga being a rurally based province. According to the PCF, the matters that will be addressed in municipalities are the reduction of high employee costs, decreasing reliance on contractors, conducting value-added audits on contracts, and providing adequate provision for debt impairment.
The Mpumalanga Provincial Treasury and the Department of Co-operative Governance, Human Settlements and Traditional Affairs are expected to monitor the implementation of these resolutions, with progress reports to be submitted at the future PCF meeting. Ndlovu instructed executive mayors to submit written commitments by May 30 to engage communities in a drive to encourage payment for services.
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“Any commitment that we are making for the implementation of projects must be realistic. Any pronouncement with no budget allocation is akin to giving false hope to the communities. We discourage such at all costs,” he said. When queried if municipalities have submitted their commitments, the spokesperson of the office of the premier, George Mthethwa, said the process of submission was not optional but a directive from the premier.
