National Treasury tables proposed financial recovery plan to get KZN's capital city back on its feet

A team from the National Treasury made a presentation during Msunduzi Municipality’s executive committee meeting yesterday. They said abuse of overtime was one of the areas that needed to be addressed.

File Picture: Pietermaritzburg's City Hall. Picture: African News Agency (ANA) Archives

Published Jun 10, 2022

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Durban - The National Treasury has finally stepped in to assist the embattled Msunduzi Municipality to manage its finances.

A team from the National Treasury made a presentation before the executive committee meeting yesterday where they tabled the municipality’s proposed financial recovery plan.

Msunduzi mayor Mzimkhulu Thebolla was at pains to stress that the intervention by the National Treasury was not imposed but had been voluntary.

The presentation showed the intervention has been in the works.

There have been growing calls for the National Treasury to step in, with opposition parties calling for it to take over the municipal finances.

They said the municipality was failing to deliver services and manage its finances.

Msunduzi has been under administration for a few years, but a recent report tabled by the former administrator Scelo Duma painted a picture of a municipality that is failing to deliver on the most basic of services.

The report highlighted the poor state of infrastructure, which was prone to regular failures which left residents without water or electricity for extended periods.

“We called for the assistance of the National Treasury, they are here in an advisory capacity,” said Thebolla, adding that the municipality has been able to address many of the challenges that led to it being placed under administration.

“We are now going to be working with the National Treasury to bring financial stability to the municipality. They will be assisting us with a financial recovery plan that will help us increase revenue and decrease expenditure,” he said.

Thebolla said among the issues the National Treasury would assist with was revenue collections.

He said they had taken the important step voluntarily because their priority was to serve the residents of the municipality by being able to deliver the required services.

Thebolla said the intervention was the next step in helping the municipality emerge from its financial crisis.

“This intervention is not to say we did not appreciate the help from the provincial Department of Cogta, we appreciate that help and we believe that this will take us to the next level.”

In a presentation, the officials made an example of the abuse of overtime as one of the areas the municipality should address to manage expenditure.

The concern was that during working hours the workers do not do any work. Instead, they loiter around and only when the overtime starts do they work, doing tasks they should have done during their normal working hours.

Treasury officials also warned that for this “intervention” to be successful, all the municipal officials should play their part.

They warned that officials who failed to comply or impeded the implementation of the financial recovery plan should face consequences.

DA councillor Ross Strachan said they welcomed the intervention as they had been calling for it for some time. “We have been calling for this (National Treasury to take over) and we would like to thank the political leadership and the administration for finally agreeing to this.

“We believe that it is long overdue,” said Strachan.

“After many cries, requests and the handing over of the memorandum highlighting the DA’s pleas for

National Treasury to intervene with a financial recovery plan, (it) has finally been conceded by Msunduzi leadership.

“The current intervention has failed dismally, only taking this municipality on a downward spiral, especially with the political interference from the province.

“The DA welcomes this progressive and long overdue intervention that will surely make a positive impact on this crippled situation.

“The DA will ensure we work hard with the National Treasury and all parties willing to co-operate in terms of making the decisive unpopular decisions to turn this situation around.”

Deputy mayor Mxolisi Mkhize gave an assurance that they would work with relevant stakeholders to ensure that the intervention was successful, as it would help to restore the city to its former glory.