Question NW2675 to the Minister of Cooperative Governance and Traditional Affairs
01 September 2023 - NW2675
Kruger, Mr HC to ask the Minister of Cooperative Governance and Traditional Affairs
Whether, with reference to the Auditor-General’s 2020/2021 report which stipulates that 84% of municipalities in the Republic failed to pay their creditors within the mandated 30-day period, her department has conducted a detailed quantitative and qualitative assessment of the resultant socio-economic ramifications, specifically the adverse impact on job losses and business viability for small companies, sole proprietors and cooperatives; if not, why not; if so, what are the relevant details of the (a) assessment and (b) strategic measures under consideration to rectify this systemic issue?
Reply:
Noting that, in accordance with Section 71 of the Municipal Finance Management Act (MFMA), municipalities submit Section 71 reports to National Treasury (NT) each month detailing their creditors, and NT assesses those reports. Given the foregoing context, this inquiry must be forwarded to the minister of finance so that National Treasury can react appropriately.
End.