Questions & Replies: Finance

The planning and implementation of the necessary Lease Management Function transformation will follow-on from the Lease Function Review.

The role of National Treasury is mainly in the functional review and stabilisation actions. DPW will take ownership of the transformation, although with Treasury support.

(2) Any actions arising from the review will be guided by the requirements and provisions of the Constitution and the laws of South Africa. As such, the outcomes of the lease review process will complement and not replace existing investigations and any resultant prosecutions that may follow the work of the Special Investigations Unit.

Reply received: April 2012

QUESTION NUMBER: 560 [NW725E]

DATE OF PUBLICATION: 09 MARCH 2012

Mr E H Eloff (DA) to ask the Minister of Finance:

(1) Whether the National Treasury has an internal audit unit; if not, why not; if so, (a) how many staff members are employed in the unit and (b) what (i) is the structure and (ii) are the functions of the unit;

(2) whether the audit committee considers the internal audit reports; if not, why not; if so, what are the relevant details;

(3) whether he holds meetings to discuss (a) the internal reports and (b) their findings with the audit committee; if not, why not, in each case; if so, (i) on what dates has each specified meeting taken place and (ii) what are the further relevant details?

NW725E

REPLY:

(1) Yes, the National Treasury has an Internal Audit Function.

(a) The National Treasury's Internal Audit Function has a total staff compliment of 20 employees.

(b) (i) Internal Audit Organisational Structure

(ii) Functions of National Treasury's Internal Audit Unit

• Roles and responsibilities of Internal Audit

Internal Audit assists the Director General of National Treasury, in achieving the objectives of NT, by evaluating and developing recommendations for the enhancement or improvement of internal controls, in line with the Treasury Regulations and the Public Finance Management Act of 1999 (PFMA).

• The Audits are performed in line with the standards of the Institute of Internal Auditors (IIA).

(2) Yes the Internal Audit Reports are tabled in the quarterly audit committee meetings. These reports highlight the internal control deficiencies noted during the review of processes and provide recommendations to management to address the deficiencies or improve the internal control environment.

(3) (a+b) Whilst no regular meetings with the Chair of the Audit Committee (AC) are held, the Minister has met with the Chair and intends to do so in the future. The Audit Committee (AC) uses its discretion to report exceptional matters to the Executive Authority (The Minister). This is because the Accounting Officer (Director-General), who is also the administrative head of the Department, is a permanent invitee to all AC meetings and deals with all issues of concern, raised by the AC.

Reply received: June 2012

QUESTION NUMBER: 535 [NW687E]

DATE OF PUBLICATION: 09 MARCH 2012

Mr N JJ van R Koornhof (Cope) to ask the Minister of Finance:

Whether the National Treasury provided the Gautrain project with a loan; if so, what (a) was the amount of the support given and (b) the repayment conditions?

NW687E

REPLY:

(a) The Gautrain Project is a Public-Private Partnership (PPP). In terms of the feasibility study and PPP agreement completed during 2005/06 and approved by Cabinet, the funding arrangements were made up of three elements; firstly, government (national and provincial) fiscal outlays; secondly, private capital investments; and thirdly, provincial borrowings. In 2008 the Gauteng Provincial Government applied for loan financing as provided for in the above-mentioned agreement. This was approved by Cabinet and ultimately Parliament as part of the 2009 Budget. Therefore, in terms of the schedule to the 2009 Appropriation Act (Act no. 16 of 2009), an amount of R4.2 billion was specifically and exclusively made available as a loan by national government to the Gauteng provincial government in respect of the Gautrain Rapid Rail Link Project. This was in addition to private party funding and the on-budget allocations by both the province and national government. It was also in line with the Borrowing Powers of Provincial Governments Act (Act no. 48 of 1996).

(b) A formal loan agreement was signed between national government (represented by the Minister of Finance) and the Premier of Gauteng Province. Within this agreement a repayment schedule was included. The interest on the loan was set equal to the mark to market yield of the R203 Government bond as set by the Bond Exchange of South Africa at close of business on the date of the loan transfer (09 April 2009). An applicable interest rate of 8.44% was thus levied and agreed to by the provincial government. The table below outlines the salient details of the amounts, the interest, and the repayment period:

Reply received: April 2012

QUESTION NUMBER: 522[NW673E]

DATE OF PUBLICATION: 09 MARCH 2012

Mr N Singh (IFP) to ask the Minister of Finance:

(1) (a) How many distressed farmers have received (i) financial assistance and (ii) other forms of assistance from the Land Bank (aa) in the 2010-2011 financial year and (bb) during the period 1 April 2011 to 31 December 2011 and (b) what form of assistance was received in each case;

(2) whether (a) financial viability and (b) medium to long-term sustainability studies have been conducted in this regard; if not, why not, in each case; if so, what are the relevant details in each case? NW673E

REPLY:

1. (a)(i)(aa) During the 2010/11 financial year, 122 beneficiaries were assisted.

1. (a) (i)(bb) During the current financial year,294 beneficiaries were assisted.

1. (b) The assistance which was provided included a combination of the following:

• Additional disbursements to clients;

• Reduction of interest rates;

• Ring-fencing of arrears, resulting in no interest being charged on the arrears;

• Debt write-offs;

• Lengthening the repayment profile of their loans; and or

§ Assisting distressed clients to forge partnerships with appropriate service providers who can provide them with technical assistance.

2 (a) As part of the restructuring process feasibility studies are conducted on all participating clients.

2. (b) These feasibility studies inform the restructuring approach and the medium to long - term sustainability.

Reply received: March 2012

QUESTION NUMBER: 521 [NW672E]

DATE OF PUBLICATION: 09 MARCH 2012

Mr N Singh (IFP) to ask the Minister of Finance:

Whether a comprehensive all-inclusive plan has been put in place to (a) monitor and (b) evaluate the use of conditional grants to (i) provinces and (ii) municipalities; if not, why not; if so, what measures have been put in place to ensure (aa) effective and (bb) efficient spending? NW672E

REPLY:

Yes.

(a) (b) The monitoring and evaluation of conditional grants is governed by the annual Division of Revenue Act ("the Act") and the associated frameworks for each conditional grant. Therefore, in compliance with the Act, the following processes and activities are undertaken:

Prior to the start of each financial year, national departments approve and submit to the National Treasury detailed business or project plans in respect of programmes funded by conditional grants. The most important aspect of these plans are the deliverables, key performance indicators and cash flow projections. The National Treasury has developed several business or delivery planning technical templates, which are utilized for this purpose where appropriate.

(i) (ii) During each financial year, national departments who are administering conditional grants submit quarterly performance reports to the National Treasury, outlining:

• how funds have been used by provinces and municipalities in the preceding quarter;

• whether the planned deliverables are being met;

• challenges to implementation and proposals to resolve them.

• After the end of each financial year, as required by the Act, provinces, municipalities and national departments must consolidate and submit annual evaluation reports in respect of each conditional grant. These reports, along with the quarterly reports, are also made available to the select committee on appropriations in the National Council of Provinces.

(aa) (bb) Finally, reporting on key deliverables in respect of conditional grants is also included in the annual reports of national departments, provincial departments and municipalities. These are, of course, available publicly and must be tabled before Parliament and provincial legislatures for interrogation and oversight. It is the prerogative of Parliament and the legislatures to hold the relevant departments to account for the manner in which they have utilized funds which were appropriated by Parliament.

Reply received: March 2012

QUESTION NUMBER: 473
DATE OF PUBLICATION: 2 March 2012

Dr D T George (DA) to ask the Minister of Finance:

Whether he met with the internal audit committee in the (a) 2010-11 and (b) 2011-12 financial years; if not, why not; if so, (i) on which dates did they meet and (ii) what are the further relevant details?

REPLY:

(a) The Minister of Finance did not meet with the National Treasury's Audit Committee during the 2010-11 financial year. The Audit Committee (AC) uses its discretion to report exceptional matters to the Executive Authority (The Minister) as the Accounting Officer (Director-General), who is also the administrative head of the Department, is a permanent invitee to all Audit Committee meetings and deals with all issues of concern, raised by the Audit Committee. There were no matters which the AC required to escalate to the Minister. (b) (i) The Minister of Finance met with the Chairperson of the National Treasury's AC during the 2011/12 financial year on 13 June 2011. (ii) The meeting was to discuss the Audit Committees concerns regarding the implementation of the Integrated Financial Management Systems (IFMS) as it relates to the National Treasury's responsibilities. The meeting also included the Director-General, the Deputy Minister of Finance and the Acting Chief Audit Executive. Discussions on the matter continue between the AC and all stakeholders as the IFMS project is being rolled out. The AC has been advised that the Minister and Deputy Minister will always be available to meet to discuss any matter(s) that the committee feels needs their attention.

Reply received: March 2012

QUESTION NUMBER: 459
DATE OF PUBLICATION: 02 MARCH 2012
Mr. T D Harris (DA) to ask the Minister of Finance:

(1) With reference to the creation of the chief procurement officer (CPO) position in the National Treasury, as announced by the Minister of Finance in his Budget speech on 22 February 2012, what is the official job description for this position; (2) who will (a) the CPO report to and (b) review the performance of the CPO; (3) (a) what (i) is the planned remuneration package of the CPO and (ii) criteria will be used to determine the appropriateness of candidates for this position and (b) when will this position be filled?

REPLY:

The Minister of Finance is currently in the process of finalising the job description of the Chief Procurement Officer with the Director-General of the National Treasury. Further announcements will be made as soon as the current work has been completed.

Reply received: April 2012

QUESTION NUMBER: 260 (NW141E)
DUE TO PARLIAMENT: 09 MARCH 2012
Mr G B D Mc Intosh (Cope) to ask the Minister of Finance:

Whether the National Treasury has taken any steps to (a) recover more than R50 billion owed to the SA Revenue Service by 9 300 very rich people countrywide and (b) register almost 7 000 of these people with a gross income of more than R7 million as taxpayers; if not, why not, in each case; if so, what are the relevant details of the (i) deadlines set to recover these moneys and (ii) penalties that have been put in place to deal with these tax evaders in particular? NW141E

REPLY:

(A) The amount of R50 billion reported in the media as being owed by High Net Worth Individuals (HNWI) was an estimate of gross income rather than tax and was based on statistical extrapolation of third party data. An accurate estimate of the potential tax liability of this group is not possible as each case is unique. For example, in some instances income may be held in trusts, companies or other structures while in other cases the income may have been derived from dividends or capital growth rather than remuneration and therefore qualify for a lower rate of taxation.

That being said, the South African Revenue Service is taking steps to improve compliance among HNWI including:

• SARS has established a dedicated unit to handle the tax affairs of the HNWI segment and, as announced in the 2012 Budget Review, improvements in compliance with the tax laws will be a focus area for SARS this year.

• SARS is using its own data and data from third parties to identify failure to register as a taxpayer, undeclared income and a variety of other forms of noncompliance.

• SARS has also commenced audits and investigations on a number of HNWIsand their associated entities such as trusts and companies. Given the complexity of tax affairs of many HNWIs, audits and investigations in this segment usually require a substantial and extended commitment of resources. One such case involving over R200 million in tax and over R400 million in additional tax has involved litigation in multiple jurisdictions and hasstretched for over a decade.

• HNWIs are often internationally mobile, with assets and activities in other jurisdictions, which demand a greater level of international cooperation. South Africa currently has 70 double taxation agreements and 5 tax information exchange agreements in force that provide for the exchange of informationwith other jurisdictions.

• SARS has also commenced joint audits with jurisdictions like Botswana, the United Kingdom and the United States of America with respect to HNWIs.

• The legislative framework has been modified to limit arbitrage opportunities and close loopholes. As examples, the higher CGT and dividend tax rates have helped narrow the arbitrage gaps between normal income and capital gains and between the income derived in an individual's hands and through a corporate entity.

(B) As noted earlier, the information reported on by the media was based on a statistical extrapolation which indicated that there could be up to 9300 individuals in South Africa who meet the SARS criteria for registration as a HNWI. This appears at odds with SARS's current registration of 2300 HNWI. SARS is conducting follow up research and risk assessment to identify actual cases of non-compliance including failure to register as a taxpayer along with other forms of non-compliance.

Where non-compliance is established, action is taken including registration of the individual, the imposition of any tax outstanding, additional tax (understatement penalties) of up to 200% and interest on outstanding amounts. Administrative penalties for failing to submit income tax returns may also be imposed. Collection efforts to recover the taxes payable, within the timeframes set by law, have begun on cases that have been finalised. Where appropriate, individuals could also face criminal charges.

Reply received: March 2012

QUESTION NUMBER: 152 [NW167E]
DATE OF PUBLICATION: 17 FEBRUARY 2012
Mr J F Smalle (DA) to ask the Minister of Finance:

(1) With respect to outstanding payments to service providers by the Limpopo Government (that resulted in interventions by National government), for each service provider to which money is owed, (a) what are the relevant details of this service provider, (b) what is the value of the outstanding amount and (c) for how long has these amounts been outstanding;

(2) whether any of the service providers have had to close down as a result of the specified non-payment; if so, (a) which service providers and (b) what steps does his department intend to take to remedy the situation in each case?

NW167E

REPLY:

(1) The intervention in Limpopo came was caused by cash crisis. The biggest short term impact of the crisis was the risk of inability to pay salaries. The Province was paying service providers 8 times in a month and the frequency of payments did not provide for an opportunity for proper verification, nor did it permit proper management of cash. Every effort is made to pay service providers within 30 days. However, payments to service providers must be substantiated with proper documentation as required in law. Therefore any service provider that claims to have delivered a service and is waiting for payment will be subjected to the appropriate verification processes as outlined both in the Treasury Regulations as well as the service agreement between the supplier and the provincial government. (a),(b) and (c) Given the fact that these processes are ongoing the list of outstanding payments is being continuously reduced.

(2) National Treasury is not aware of any service providers that may have closed down and the reasons (should there be any) might not be directly related to the section 100 processes.

Reply received: March 2012

QUESTION NUMBER 128
DATE OF PUBLICATION: 17 FEBRUARY 2012

MR N SINGH (IFP) TO ASK THE MINISTER OF FINANCE:

(1) Whether the National Treasury has any measures in place to ensure that correct (a) value added tax (VAT) and (b) income tax returns are being submitted to the SA Revenue Service (SARS) from the proliferation of China Town shops which refuses to supply customers with till slips and who fail to register sales on their tills; if not, why not, in each case; if so, what are the
relevant details, in each case; (2) what is the value of customs duty received on the importation of the goods sold in these complexes for the (a) 2009-10 and (b) 2010-11 financial years; (3) whether SARS identified any irregularities in (a) VAT, (b) income tax submissions and (c) custom duties by these shops; if not, why not; if so, what (i) measures have been put in place to ensure that these irregularities do not re-occur and (ii) are the further relevant details?

REPLY:

(1) The South African Revenue Service applies the law objectively and fairly to all taxpayers. In its efforts to address possible non-compliance wherever it may occur, SARS has initiated a multi-agency task team to combat illicit trade and non-compliance with tax and customs laws among small businesses and the informal sector. These interventions are carried out by members from SARS, the Department of Home Affairs immigration, the South African Police Service (SAPS) and the Department of Trade and Industry (DTI) in areas where there are a proliferation of small retailers and informal traders.

PARLIAMENTARY QUESTIONS

To date interventions have successfully taken place in the Free State, Eastern Cape, North West Province and Gauteng. The joint law enforcement agency task team established continues to operate applying an integrated approach to dealing with retailers trading in illicit goods and not complying with tax legislation. The mandate of SARS is to ensure compliance of all taxpayers. SARS is implementing various measures to ensure the registration of all businesses for tax purposes. In support of this process SARS has proactively started with taxpayer education and compliance programs to register all businesses. (2) In line with current legislation, Customs retains information supplied at the time of importation or exportation by importers and exporters who are not necessarily the final retailer. As such, information relating to Customs duties on goods sold at a specific complex, area or retailer is not available. (3) In terms of secrecy provisions in both tax and customs legislation, SARS is not at liberty to disclose details regarding the compliance of specific taxpayers. However, among the incidents of non-compliance identified during the interventions included failure to register with SARS, non-submission of returns, the presence of illicit goods and other contraventions of both tax and customs legislation. SARS employs a variety of measures to promote and enforce compliance among all taxpayers according to the SARS Compliance Model. Where noncompliance is as a result of ignorance or error, this compliance approach provides education and assistance to traders and taxpayers to inform them of their obligations and how to meet them. Where non-compliance is a result of deliberate evasion, the approach provides for a variety of enforcement actions including administrative penalties, additional tax and, where appropriate, criminal prosecution. Illicit goods or goods suspected for being illicit or not being compliant with customs legislation are confiscated.

Reply received: March 2012

QUESTION NUMBER PQ 127 (NW136E)
DATE OF PUBLICATION: 16 FEBRUARY 2012
Mr N Singh (IFP) to ask the Minister of Finance:

(1) Whether he has been informed that old-age pensioners who (a) receive social welfare grants and (b) utilise banks to receive these grants are required to complete tax return forms because they receive interest payments, albeit small amounts, from the banks; if not, why not, in each case; if so, what are the relevant details, in each case

(2) whether he intends eliminating the need for completion of tax returns by these bona fide recipients of social welfare; if not, why not; if so, what steps;

(3) Whether he will make a statement on the matter? NW136E

REPLY

(1) Yes, I have generally been made aware of complaints by pensioners about the fact that they are required to submit tax returns. A person's obligation to submit a tax return is, however, dependent on a number of factors such as whether the person's income exceeded the income tax threshold, the nature of the person's income and the investments of the person. These requirements are published annually in a Government Gazette that is issued by the Commissioner for SARS in terms of section 66 of the Income Tax Act

(2) However, an old age pensioner whose only income is that of a social welfare pension from the state and a negligible amount of interest on the account into which the pension is paid, is not required to submit an income tax return.

(3) No further statement will be made in this regard.

Reply received: March 2012

QUESTION NUMBER: 120 [NW129E]
DATE OF PUBLICATION: 24 FEBRUARY 2012
Mr N J J van R Koornhof (Cope) to ask the Minister of Finance:

Whether the National Treasury intends taking over the financial affairs of any other provinces in 2012 in terms of section 100 of the Constitution of the Republic of South Africa, 1996; if not, what is the position in this regard; if so, which provinces?

NW129E

REPLY:

Not at this stage. We are monitoring provincial financial performance closely and providing support where it is deemed necessary to avoid any takeover of financial affairs of other provinces.

Reply received: March 2012

QUESTION NUMBER: 109 [NW119E]
DATE OF PUBLICATION: 09 FEBRUARY 2012
Mrs J F Terblanche (DA) to ask the Minister of Finance:

(1) Whether any agreement has been signed between the Government and the World Bank which determines South Africa's status as a developing country and the conditions attached thereto; if not, what is the position in this regard; if so, (a) when was the agreement signed and (b) what are the further relevant details;

(2) whether a copy of the agreement is available to the public; if not, why not; if so, what are the relevant details?

NW119E

REPLY

(1) South Africa is classified by the World Bank as an upper middle income country using Gross National Income as a measure. The implications of the classification are that South Africa can access loans at market-related interest rates from the Bank, through the International Bank for Reconstruction and Development but not the International Development Association, which is the concessional window. As a founding member of the Bretton Woods Institutions since 1945, South Africa's relationship with the World Bank has evolved, and became pronounced in the post-1994 period following the implementation of the Country Partnership Strategy of 2008.

The Strategy at best, is a framework through which the World Bank identifies priority areas into which the World Bank intends to provide support using a number of instruments such as technical assistance, advisory assistance and loan financing. No agreements are signed in this regard with the World Bank. The Government of South Africa is not a counter-signatory to the Country Partnership Strategy. The Executive Board of the World Bank approved the strategy in January 2008. The Strategy will expire during the course of 2012, and a new document will be developed by the World Bank. Under the framework of the Country Partnership Strategy with the World Bank, Eskom succeeded in obtaining loan financing of $3.75 billion for Medupi and Kusile coal-fired power stations, and recently $250 million to finance 100 MW of wind and solar power plants respectively. These loans are guaranteed by the Government of South Africa. Of critical importance to note, however, is that the Country Partnership Strategy does not represent an agreement between the Government of South Africa and the World Bank, although various national stakeholders are consulted when it is developed.

(a) Not applicable

(b) Not applicable

(2) The copy of the current Country Partnership Strategy is publicly accessible

via the World Bank website.

Reply received: March 2012

QUESTION NUMBER: 107 (NW116E)

DUE TO PARLIAMENT: 09 MARCH 2012

107. Mr P van Dalen (DA) to ask the Minister of Finance: (Interdepartmental

transfer on 23 February 2012)

(1) What is the total (a) weight and (b) value of all (i) metal, (ii) copper, (iii) copper alloy and (iv) aluminium that was exported from all ports (aa) in the (aaa) 2006-07, (bbb) 2007-08, (ccc) 2008-09, (ddd) 2009-10 and (eee) 2010-11 financial years and (bb) during the period 1 April 2011 up to the latest specified date for which information is available;

(2) (a) what proportion was (i) newly mined and (ii) scrap metal and (b) to which specified countries were the metals exported in each case;

(3) whether any income in the form of export duties was derived from these exports; if not, why not; if so, what are the relevant details;

(4) whether (a) copper, (b) copper alloy and (c) aluminium are imported; if not, what is the position in each case; if so, in each case, (i) why and (ii) how much? NW116E

REPLY:

Check the following table: http://www.pmg.org.za/files/questions/RNW107-120507.pdf

Reply received: February 2012

QUESTION NUMBER: 1 [NW2E]
DATE OF PUBLICATION: 09 FEBRUARY 2012
Mr J J McGluwa (ID) to ask the Minister of Finance:

(1) Which 66 of the 278 municipalities are in financial distress;

(2) what are the relevant details of the reasons why each of the 66 municipalities is in its current predicament;

(3) whether this situation will affect the budget allocations for the new financial year. if not, what is the position in this regard; if so, (a) how and (b) what are the further relevant details;

(4) whether he has put corrective measures in place; if not, why not; if so, what are the relevant details? NW2E

REPLY:

(1) The 66 municipalities that fall within the "distress" category are listed as part of the released report. The Honourable member can access the copy from our website at following link:http://mfma.treasury.gov.za/Media_Releases/Pages/default.aspx

(2) There are specific criteria applied in determining "distressed municipalities': amongst others are:

a. Cash as a percentage of operating expenditure - very low levels of available cash may result in the municipality being unable to pay employees and suppliers

b. Persistence of negative cash balances - evidence that cash flow problems have persisted for a period of time

c. Over spending of original operating budgets – failure to compile a credible operating budget or to manage the implementation of the operating budget properly

d. Underspending of original capital budgets - failure to compile a credible capital budget or to manage the implementation of the capital budget properly

e. Debtors as a percentage of own revenue – high level of debtors reflects poor revenue management, and a failure on the part of the municipality to collect own revenues

f. Year-on-year growth in debtors – high growth suggests a recent breakdown in debtor management

g. Creditors as a percentage of cash and investments – high levels indicate that the municipality is not paying suppliers timeously, and is at risk of defaulting on payments

National Treasury uses these criteria mainly to target its intervention programme in municipalities.

(3) No. National Treasury and Provincial Treasuries will collaborate with municipalities to ensure that the 2012/13 budgets are sustainable and underpinned by credible assumptions. We expect that this assessment will assist municipalities to correct their future budgets accordingly. National Treasury is currently conducting mid-year assessments of all municipal budgets to determine the risks and recommend mitigation strategies. All municipal budgets (drafts to be presented by 31 March 2012 in respective Municipal Councils) will be assessed for their credibility in April/May. National Treasury expects that Municipal Councils will adjust their draft budgets accordingly to ensure their sustainability.

(4) Yes. Corrective measures have been put in place. The answer above, (3) partly articulates the strategy around budget preparation. However, the budget preparation, while it is a good start will not address the problem on its own.

National Treasury has established a Municipal Finances Monitoring Committee, consisting of officials from both the National Treasury and the provincial treasuries, that will be tasked with co-ordinating such investigations and then determining what specific support should be provided, or whether an intervention is required due to a crisis in the municipality's finances.

The aim of establishing the Committee is to ensure that the support that National Treasury is already providing to municipalities is better targeted to municipalities that really need it. Among the support initiatives already in place to address municipal issues with poor financial management are:

a. The Financial Management Grant that funds the appointment of recently graduated interns to the Budget and Treasury Offices of municipalities;

b. The Municipal Financial Improvement Programme (MFIP) that deploys experts to municipalities that require direct hands-on-support with financial management issues;

c. The MFMA Helpline – an email help facility that assists municipalities with any MFMA or financial management related queries;

d. The MFMA Learning portal – that provides an on-line training course for municipal finance officials;

e. Direct monitoring and feedback of municipalities' budgets and section 71 (in-year) reports;

f. Training workshops for municipal CFOs and officials on issues related to the MFMA and budgeting; and

g. Training workshops for Mayors and councillors (organised with SALGA) on financial management issues, particularly budgeting.

In addition, National Treasury is working with provincial treasuries to improve the capacity of their MFMA Units by providing funding for the appointment of five local government specialists in each treasury, and by providing extensive training related to the oversight of municipal budgets and municipal finances more generally. The aim is to strengthen the provincial treasuries' capacity to provide technical support to municipalities in financial distress.