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Municipalities top priority for NC Finance MEC

───   CATHY DLODLO 16:44 Wed, 25 May 2016

Municipalities top priority for NC Finance MEC | News Article

Kimberley - Northern Cape Finance MEC, Mac Jack, says one of the key projects for his department this financial year is to help municipalities to increase their revenue collection.


He says municipalities in the province collected a total of R2.2 billion by the end of March this year. This, he said, is nine percent less than its total revenue base. Under-collection, combined with the non-payment of creditors such as Eskom and Water Boards, and massive outstanding debts are key to the financial strains of municipalities.

Jack said during an assessment of the finances of municipalities, his department found that municipal councils continue to approve budgets that are not funded. He said his department, in partnership with National Treasury, is going to launch revenue enhancement projects for all of its 32 municipalities.

The billing system of municipalities will be closely scrutinized as part of this project.

The second leg of the project is to assist municipalities in taking appropriate steps against government departments to settle their debts.

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