POLITICS

DA welcomes probe of Gauteng municipal finances

Fred Nel says the situation is becoming critical

DA REQUESTS FULL PROBE INTO GAUTENG MUNICIPAL FINANCES

I welcome the intention by minister Shicelo Shiceka, Minister of Co-operative Governance and Traditional Affairs, to investigate municipal finances in the Gauteng Province, said Fred Nel, DA Gauteng spokesperson for Local Government. Municipal finances are one of the three key elements that need to be fixed to get service delivery back on track in Gauteng, and so such an investigation is crucial to find long term solutions to municipal financial woes (see Times report).

However, the investigation should not be a superficial listening exercise where the minister only consults with the MEC about the problem. I call on the minister to appoint a suitable panel of experts to conduct thorough investigations at municipalities in Gauteng to identify the root causes of  their dire financial positions, and these investigations should not be limited to the billing systems alone.

If municipal financial management in Gauteng is not strengthened very soon, major government bail-outs will become necessary to save local authorities from outright bankruptcy.

Statement issued by Fred Nel, MPL, DA Gauteng Spokesperson on Local Government, Januayr 25 2011

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