Rural KZN municipality considered one of South Africa’s shining examples for good financial management

South African Local Government Association (Salga) says Okhahlamba is one of the well-managed municipalities in the country

Okhahlamba Mayor Vikizitha Richard Mlotshwa. Picture: www.okhahlamba.gov.za

Published Jun 20, 2022

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Durban- Okhahlamba Local Municipality, in Bergville, is one of the shining examples of good governance, according to the South African Local Government Association (Salga).

Salga was reacting to a recent report by the office of the auditor-general that many municipalities across the country were not functioning at their best.

On Wednesday, 15 June, the Auditor-General of South Africa (AGSA) released the Municipal Financial Management Act (MFMA) General Report for 2020/21 which outlined the state of municipal financial health and accountability ecosystems over the five-year term of the previous local government administration.

“The pockets of excellence who have consistently – without fail – achieved clean audits since the 2016/17 financial year to date must be acknowledged for their exemplary work,” Salga said in a statement.

“These are the municipalities whose control systems must be studied and used to draw lessons for others to emulate,.”

It listed the Okhahlamba Local Municipality in KwaZulu-Natal among several municipalities that had performed well over the review period.

However, Salga said the 2020/2021 auditor-general report on local government painted a gloomy picture about lack of accountability in municipal finance management.

“This calls for a new approach to enforce accountability and consequence management. A carrot and a stick approach – where excellence is rewarded whilst mediocrity and maladministration is punished – is what is needed to turn local government around,” it said.

“The deteriorating quality of governance and accountability that is fuelled by lack of consequence management in municipalities is indeed a serious concern for Salga.”

While expressing disappointment over the AG’s findings, Salga said the report provides some key lessons on what works, identifies areas of improvement, and those municipalities that require serious and urgent intervention.

THE MERCURY