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MOU on Municipalities Under the Spotlight

August 25, 2020

National Treasury

An operational plan to implement the Memorandum of Understanding (MOU) between national treasury and the cooperative governance and traditional affairs department on municipalities must be drafted immediately.

Treasury highlighted this in a statement following a special Budget Forum meeting to discuss municipal sustainability amid the growing crisis in the local government sector.

The Budget Forum consists of MECs of finance and the South African Local Government Association.

Treasury added that the plan must be ready for endorsement by the September 2020 Budget Forum.

The MOU was signed in 2017.

“It was agreed that NT will lead on local government financial management matters and CoGTA will lead on governance and co-ordinate service delivery efforts. SALGA will continue with its efforts to empower municipal councillors.”

Other resolutions flowing from the meeting include a stronger focus on the adoption of funded municipal budgets, improved revenue management practices and improved audit outcomes with less reliance on service providers; clear distinction maintained between the roles of politicians and that of the administration to resolve governance challenges in municipalities and the enforcement of legislative measures to address consequence management and instil accountability, particularly in the case of poor service delivery, wastage of public funds and corruption, requires collective action to be effective.