Question NW389 to the Minister of Finance
08 August 2019 - NW389
Sarupen, Mr AN to ask the Minister of Finance
(1) Whether he has found that the West Rand District Municipality’s financial recovery plan will turn the municipality’s ailing finances around; if not, what is the position in this regard; if so, what are the relevant details; (2) what is the current status of the specified district municipality’s financial recovery plan?
Reply:
1. The financial recovery plan for the West Rand District Municipality was prepared by the Municipal Finance Recovery Service (MFRS) following a request from the Gauteng Provincial Government.
The MFRS has for purposes of the preparation of the financial recovery plan consulted with both the administrative and political leadership component of the municipality (Executive Mayor and Mayoral Committee; Accounting Officer and senior management); MEC’s for Finance and Local Government; Organised local government; Organised labour; and principal suppliers including creditors and the community.
The financial recovery plan is holistic focusing on financial management; organisational structure and institutional matters; human resource management; governance; and infrastructure and service delivery. Moreover, it addresses the municipality’s service delivery model, operations, structure, processes, policies, bylaws, budget, cash flow management, debt collection, expenditure and revenue-raising measures. These collectively will contribute to the turnaround if implemented accordingly. The turnaround of the West Rand District Municipality requires not only internal commitment from the Municipality but support from the Provincial Executive.
2. The financial recovery plan was submitted by the MFRS to the Gauteng MEC for Finance for further processing in terms of Section 143(2) of the Municipal Finance Management Act, 2003.