KZN Treasury, uMkhanyakude District Municipality resolve issues to enhance financial management
Finance MEC, Francois Rodgers hosted a meeting with the mayor of the uMkhanyakude District Municipality, Siphile Mdaka, on financial management matters.
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The KwaZulu-Natal provincial treasury and the uMkhanyakude District Municipality have ironed out their differences that led to the withdrawal of experts deployed by the Treasury to assist the municipality.
The experts will be deployed again to assist the municipality following a meeting between the leadership of the municipality and Finance MEC, Francois Rodgers.
The experts had been withdrawn after the MEC stated that the municipal officials were ignoring the experts and failing to attend scheduled meetings.
In a statement, the department said that Rodgers hosted a positive meeting with the mayor of the uMkhanyakude District Municipality, Siphile Mdaka, on financial management matters.
The meeting was initiated by Rodgers following an engagement with the office of the Auditor General, which had flagged several issues that the municipality needed to address to achieve fiscal compliance.
Issues highlighted include non-compliance with the prescripts of the Municipal Finance Management Act and poor debt collection.
“Mdaka undertook that both the political and administrative leadership at the municipality had committed to turning around the situation and required assistance from KZN Treasury on aspects related to financial management.
“The mayor announced that the municipality had since appointed its own internal audit and risk committee, a function that was previously outsourced. The municipality further welcomed the return of KZN Treasury’s support for its supply chain management function,” said the statement.
Rodgers said it was a step in the right direction that the municipality has its own own audit and risk committee.
“You must now make sure that their findings and recommendations are heeded, and corrective measures taken so the municipality achieves compliance with financial management laws and regulations.”
MEC Rodgers also appreciated an undertaking by Mayor Mdaka and uMkhanyakude senior officials to improve their implementation of consequence management processes against officials who are guilty of financial misconduct.
“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.”