The KwaZulu-Natal Finance MEC Francois Rodgers has reinstated the financial support to Umkhanyakude District Municipality following the mending of relations between the two institutions.

The relationship between the two had soured, which resulted in the department withdrawing its financial assistance to the municipality due to lack of cooperation by the municipality’s management. The municipality, in the north-east of the province, had been angered by the provincial cabinet’s decision to place it under administration and openly challenged the decision. After a public war and a court battle, the provincial cabinet reversed its decision and removed the administrator Bamba Ndwandwe.

Under Section 139(b) the provincial government strips municipalities of some administrative and financial powers and delegates those to an administrator. Last week, the government moved the municipality from Section 139(b) to Section 154, which requires the provincial government to send financial and administrative teams to assist the municipality.

Rodgers and the district municipality mayor Siphile Mdaka met in Pietermaritzburg on Tuesday to discuss financial management issues in the district. After the meeting, which Rodgers described as positive, he announced the reinstatement of his department’s financial support to the district municipality.

In a statement issued by the department after the meeting, it said Rodgers hosted a positive meeting with Mdaka on financial management matters pertaining to the municipality.

The department added that the meeting was initiated by Rodgers following an engagement with the office of the Auditor General who had flagged several issues needing to be addressed by the municipality to achieve fiscal compliance. In the meeting, Rodgers had highlighted non-compliance with prescripts of the Municipal Finance Management Act (MFMA), overspending or incurring unauthorised expenditure and poor debt collection.

“As agreed by both institutions we look forward to clearly defined action plans and turnaround strategies with time frames. Our Treasury team is on hand to guide this process. As the political leaders of our institutions, it then becomes our mandate to monitor this process to ensure success” read the statement.

In response, Mdaka undertook that both the political and administrative leadership at the municipality would commit to turn around the situation and require the Treasury’s assistance on aspects related to financial management.

He further announced that the municipality had since appointed its own internal audit and risk committees, a function that was previously outsourced. Furthermore, the municipality welcomed the return of KZN Treasury’s support to its supply chain management function.

willem.phungula@inl.co.za

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