CAPE TOWN - The DA in the Western Cape has congratulated the Drakenstein municipality, who, for the second year in a row, has been named as the most financially healthy municipality in South Africa, according to the National Treasury "State of Local Government Finances and Financial Management Report" released this past week.
In 2018, Drakenstein shared this top position with the Umthlatuzi (Richards Bay) municipality in KwaZulu-Natal, DA Western Cape leader Bonginkosi Madikizela said on Sunday.
"Drakenstein municipality tops the list of 27 municipalities with the largest budgets and includes the towns of Paarl, Wellington, Mbekweni, Hermon, Saron, Gouda, and Simondium. According to the National Treasury report, the criteria used to measure the financial health of a municipality included eight key measures.
These were cash as a percentage of operating expenditure; persistence of negative cash balances; overspending of original operating budgets; underspending of original capital budgets; debtors as a percentage of own revenue; year-on-year growth in debtors; creditors as a percentage of cash and investments; and reliance on national and provincial government transfers.
"Despite the ongoing funding and revenue challenges faced by municipalities, the Drakenstein municipality has excelled in their financial management. The municipality continues to pay creditors within 30 days of receipt of invoices," Madikizela said.