Ekurhuleni Finance MMC given KPAs to work on

Executive Mayor of Ekurhuleni, Dr Nkosindiphile Xhakaza. Picture: Jonisayi Maromo/IOL

Executive Mayor of Ekurhuleni, Dr Nkosindiphile Xhakaza. Picture: Jonisayi Maromo/IOL

Published Jul 10, 2024


Ekurhuleni Executive Mayor Nkosindiphile Xhakaza has set priority areas for newly appointed Member of the Mayoral Committee(MMC) for Finance, Zongizizwe Dlabathi.

According to the Key Performance Areas (KPA) set out by Xhakaza, Dlabathi is expected to recover and rebuild a strong financial position by encouraging and fostering a culture of payment by every household that uses municipal services.

“The new MMC must come up with effective debt management measures underpinned by earning systems. Restoration of effective revenue enhancement programmes.

“Business and households incentives for sustainable payment and enabling private sector investment to expand the revenue base.

“Exploitation of municipal assets to generate revenue with a strong collaboration with the private sector. Once off conditional debt and interest relief to re-boot our debtors book,” the mayor added.

One of the area’s Dlabathi needed to pay attention to was to make sure it curtailed revenue leakages and losses and by also improving the accuracy of billing.

On supply chain management (SCM), the MMC is expected to curtail and prevent unnecessary occurrences of wasteful, fruitless and irregular expenditure.

“Economic use of municipal finances to tighten procuring for goods and services are primarily for providing essential services. Systematic and efficient payment system.”

During his first budget speech, Dlabathi said the 2024/25 budget was developed through extensive consultation with the multi-party caucus and rigorous planning in the municipal finance budget steering committee.

The MMC said the budget reflected the municipality’s commitment to promoting good governance and ensuring the financial sustainability of the city.

“As we navigate through challenging economic times, the economy continues to face several constraints, including slow growth, high unemployment, and fiscal pressures in the current post-Covid reality we find ourselves in.

“Municipalities across the country are not immune to these challenges. The financial situation of many towns and cities is strained due to declining revenue generation and increased service delivery expectations.

“This administration is committed to maintaining financial stability while addressing the needs of our residents and driving sustainable urban development,” added the MMC.

The total revenue for this fiscal year is projected to be R60.67 billion, with an increase from the revised budget of R55.56 billion for 2023/24.

Dlabathi said the budget’s growth was essential in supporting ambitious development plans and to ensure the delivery of quality services to residents.

The municipality had budgeted R60.07 billion for 2024/25, up from R55.08 billion in the revised budget for 2023/24.

“This includes significant investments in infrastructure, social services, and community development.

“Despite these substantial investments, we anticipate an operating surplus of R601.9 million for 2024/25. This surplus is projected to grow to R629.9 million in 2025/26 and R658.5 million in 2026/27, ensuring that we remain on a sound financial footing.”

During his media briefing on Wednesday, mayor Xhakaza revealed that the first task of his assignment was to stabilise governance in the city.

He detailed the six key pillars which would enable the city to move forward.

One of the key initiatives he focused on was the establishment of the “Service Delivery War Room” which was aimed at co-ordinating and tackling service delivery issues head-on.

Xhakaza highlighted the administration’s achievements and progress the city made in the 90 days since he was in office.

According to the mayor, in the 90 days since he assumed the mayoral position, his administration successfully completed and opened the Rietfontein Landfill Site, which he described as a critical step in improving the waste management infrastructure.

“We recently received the final delivery of 13 waste compactor trucks, completing our full order of 21 new trucks added to our fleet.

“This significant enhancement to our waste management infrastructure will greatly improve the efficiency and reliability of waste collection services across the city, leading to cleaner neighbourhoods and a healthier living environment for all residents,” Xhakaza added.

He said these achievements demonstrated the continued commitment of maintaining a clean and accountable institution, guided by the Municipal Finance Management Act (MFMA) and other legislation.

Despite, these achievements, Xhakaza said the partnership they have with other political parties had proven to be more challenging, but the government’s main priority was to provide services to the city’s residents.

“It has been challenging, however, through performance agreements, strategic planning, and open communication, we are fostering a cohesive and collaborative working environment,” he said.

The briefing comes after the ANC in Ekurhuleni appointed its former chief whip Jongizizwe Dlabathi as the Finance MMC in the city.

Dlabathi replaces the EFF’s provincial chairperson, Nkululeko Dunga, who was abruptly removed as the MMC.

The Star

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