Question NW1507 to the Minister of Finance

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13 August 2020 - NW1507

Profile picture: Brink, Mr C

Brink, Mr C to ask the Minister of Finance

With reference to complaints of breaches of the provisions and/or regulations of the Local Government: Municipal Finance Management Act (MFMA), Act 56 of 2003, (MFMA) received by the National Treasury via the email address mfma@treasury.gov.za and other portals and/or means since 1 July 2016, what (a) total number of (i) complaints were received and (ii) (b) the received complaints were investigated and found to be justified and/or warranted, (b) three categories of complaints that were found to be justified and/or warranted were most common and (c) are the top 20 municipalities which were found to have most often breached the MFMA provisions and/or regulations?`

Reply:

(a) (i) Whilst some complaints have been received through the MFMA helpdesk with the email address MFMA@treasury.gov.za, the aim of this helpdesk is to receive queries and requests for comments regarding the implementation of the MFMA. Since July 2016, six reports of non-compliance with the MFMA were received.

(ii) Of the complaints received, the relevant Provincial Treasury was engaged on the very same matter and the relevant municipality has been engaged accordingly. The National Treasury is currently engaging one municipality to establish the facts of the matter. The remaining four complaints have been referred to the relevant stakeholders to take forward.

(b) The compliants received deal with an array of issues however there are no commonalities.

(c) The National Treasury does not maintain a ranking list for non-compliance. It is important for the Honourable Member to note that in terms of Chapter 15 of the MFMA read together with the Municipal Regulations on Financial Misconduct Procedures and Criminal Proceedings, it is the responsibility of the municipality to investigate acts of non-compliance by municipal officials and councilors and institute disciplinary actions accordingly. Each municipality must develop reporting procedures through which complaints and allegations must be reported.

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