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Mpumalanga Municipal Governance and Finance Indaba




Posted: 11 March 2020

The South African Local Government Association (SALGA) in Mpumalanga held the Municipal Governance and Finance Indaba on the 5th to the 6th of March 2020, at Graceland Hotel in eMbalenhle/Secunda.
As the Executive Mayor of Govan Mbeki Local Municipality Clr. T Ngxonono gave her welcoming address, she appreciated the support provided by SALGA in ensuring that municipalities enhance their performance.
The SALGA Mpumalanga Deputy Chairperson, Clr. Tiny Mthimunye, in her address highlighted that "the governance & financial management of municipalities remain at the core of the delivery of basic services to our people. For the 2018/19 audits, Nkangala and Gert Sibande district municipalities have achieved audit outcomes but the picture does not look good as most of our municipalities have regressed".
The Indaba aimed to tackle issues of the National Development Plan (NDP), to ensure that local government starts moving towards implementing the NDP and realising the ideals of a capable and developmental state. SALGA has adopted a multi-disciplinary approach that aims to curb working in silos and enhance the effectiveness of a consolidated hands-on support programme to member municipalities.

Three panel discussions were held discussing the following issues:

  1. Panel Discussion one (1): Consequence and Accountability a means towards improving Municipal Audit Outcomes;
  2. Panel Discussion two (2): Revenue Management and Enhancement; and
  3. Panel Discussion three (3): The intersection between Good Governance, Records Management, Impact on Service Delivery and Audit Outcomes.

Consequences and Accountability management is at the core of any democratic government which is committed to Good Governance and Improved Service Delivery. SALGA, with its members municipalities argued and confirmed that there is a need for the development of a Consequences and Accountability framework in its various National Members' Assemblies (NMA's) and other platforms. The development of the Consequences and Accountability Framework is aimed guiding municipalities in management and application of Consequences and Accountability.

On day two of the Indaba, presentations were received on the Overregulation of Local Government by LGSeta, Individual tax and Value added tax for municipalities by the South African Revenue Services, as well as a knowledge sharing and peer learning session by SALGA (SALGA Mobi app) and the Department of Cooperative Governance and Traditional Affairs (COGTA Govchat app).

The SALGA Mobile Application (Mobi App) is a Smart Mobile Application designed by SALGA with an objective to acquire and disseminate past performance, current and risk information about municipalities. The information, insight and intelligence is aimed to inform and enhance decision making processes on a range of issues affecting municipalities.

The way forward with regards to the Indaba topics were as follows:



Consequence and Accountability as means towards Improving Municipal Audit Outcomes

SALGA should consult relevant stakeholders on the possibility for the reviewal of the Municipal Systems Act and Municipal Structures Act.

SALGA should continue to address all the challenges that Municipalities have with Eskom through the new Inter-Ministerial Committee (IMC) on Service Delivery.

SALGA should assist District Municipalities to resuscitate their District Area Finance, Risk and Internal Audit Forums.

SALGA should continuously capacitate Councillors on all regulations governing Municipalities.

SALGA should engage the Auditor General on the alignment of Audit procedures for Municipalities.

Municipalities must appoint qualified, competent and relevant officials on key positions.

Municipalities should consider creating the position of Chief Audit Executive in their organogram.

SALGA should engage Nkangala District Municipality on the performance of the shared District Audit Committee.

Revenue Management and Enhancement

SALGA to engage Provincial Treasury on the audit of the Municipalities Indigent Registers.

SALGA should seek to finalise the Service Delivery Agreement (SDA) with Eskom to enable Municipalities to collect revenue in all Communities (where Eskom is licensed for reticulation).

Municipalities should determine a leverage to encourage Communities to pay for other services (e.g. Electricity).

Municipalities are encouraged to utilize smart meters for Electricity and Water

Municipalities (Councillors) to encourage communities to pay for their Municipal services through various platforms

SALGA to continuously engage National Treasury on the equitable share formula rationale.

Municipalities to create a conducive environment for economic development and employment creation. As part of creating a better revenue base.

The Intersection between Good Governance, Records management, Impact on Service Delivery and Audit Outcomes

Municipalities should appointment qualified, competent and relevant officials on records management.

Municipalities should establish Records Management Committee (consisting of Finance, Human Resources, ICT and Records Management) to work towards a centralized Records Management System.

Municipalities should have Disaster recovery Plans in place.


Municipalities should prioritize off-site storage.

Municipalities should perform daily back-ups.

SALGA and Municipalities should continuously train and develop Records Management staff.

Municipalities should design monitoring & evaluation mechanisms to assess actual performance against agreed objectives.

Municipalities should digitalize records management.

Work Skills Plans

Municipal Skills Development facilitators (SDFs)/training officers to prioritize and facilitate training ward committee councillors.

Municipalities must make LGSETA funding accessible for learnership for skills acquisition.

Municipalities must ensure that ward committee councillors attend LGSTA training programmes.

Municipalities must eliminate red tape preventing students from accessing Learnership programmes.

Enhance Public Participation, including the use of Technology in Promoting Inclusive Governance

SALGA to work with other stakeholders to have updated information for the Mobi APP (application).

Information on the Mobi APP to be updated on a regular basis for accurate reporting.

COGTA to conduct extensive awareness to the public on the Govchat platform.

Individual Tax / Value Added Tax (VAT) for Municipalities

Municipalities to ensure that SARS has updated contact details of CFOs, MMs all the time.
SALGA facilitate an engagement between SARS and municipalities regarding debt due.

Municipalities must always submit VAT returns and supporting.

Supply Chain Management officials must be given access to e-filling only for verification purposes.

SALGA to assist in the training of councillors on allowances, benefits etc., and taxation of such.

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