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City ahead of other municipalities in terms of delivery, but challenges remain - Treasury
By BABALO NDENZE Metro Writer
THE National Treasury has sung the City of Cape Town's praises, saying it is well ahead of other municipalities in dealing with infrastructure backlogs and delivery of services.
However, the Treasury says the provision of housing and transport infrastructure remains a challenge. It also recommended that the city quickly remedied the problems arising from the "unwalled" toilets in Khayelitsha.
The Treasury's mid-year budget and performance assessment of the city, which was conducted in January by a delegation lead by the National Treasury, states that the city has for the sixth consecutive year received an unqualified audit opinion.
"This is an indication of adequate and robust financial systems. The spending levels as reflected in both the 2008/09 audit outcome and the 2009/10 mid-year assessment report are good. This is an indication of good planning and adequate capacity to spend by the city," read the report.
The Treasury said, however, that the city should address issues raised by the auditor-general (AG) and find common ground.
Some of the issues raised by the AG included the failure by the Cape Town International Convention Centre Company to put in place a fraud prevention plan as required by law. The city's forensic investigations into several possible fraudulent acts by officials and suppliers was also raised by the AG. The city spent a total of R14.2 million on its highest priority cases.
The report said that, despite the economic recession, the city was able to deliver 10 613 direct permanent jobs and 16 379 temporary jobs.
The report also lists other service delivery achieve- ments like:
# R1. billion in direct new investment.
# An increased number of toilets in informal settlements to 24 954.
# A 26.6 percent reduction in overall water demand.
Independent rating agency Moody's International has also confirmed the city's rating with a stable outlook in its annual rating review, "a further vote of confidence in the city's finances".
The purpose of the mid-year budget and performance assessment is to "institutionalise" the Municipal Finance Management Act and the Treasury's oversight responsibilities with regard to local government finances.
"In terms of section 72 of the Act, the accounting officer (municipal manager) must by January 25 each year assess the performance of the municipality for the first half of the financial year," it said.
And according to an independent Empowerment survey, the city was rated the top South African Metropolitan Municipality for service delivery.
"Although the city has done very well in the delivery of services to its residents and is well ahead of its peers in dealing with infrastructure backlogs, the provision of housing and transport infrastructure are still a challenge," it said.
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Published on the web by Cape Times on May 19, 2010. © Cape Times 2010. All rights reserved.
By BABALO NDENZE Metro Writer
THE National Treasury has sung the City of Cape Town's praises, saying it is well ahead of other municipalities in dealing with infrastructure backlogs and delivery of services.
However, the Treasury says the provision of housing and transport infrastructure remains a challenge. It also recommended that the city quickly remedied the problems arising from the "unwalled" toilets in Khayelitsha.
The Treasury's mid-year budget and performance assessment of the city, which was conducted in January by a delegation lead by the National Treasury, states that the city has for the sixth consecutive year received an unqualified audit opinion.
"This is an indication of adequate and robust financial systems. The spending levels as reflected in both the 2008/09 audit outcome and the 2009/10 mid-year assessment report are good. This is an indication of good planning and adequate capacity to spend by the city," read the report.
The Treasury said, however, that the city should address issues raised by the auditor-general (AG) and find common ground.
Some of the issues raised by the AG included the failure by the Cape Town International Convention Centre Company to put in place a fraud prevention plan as required by law. The city's forensic investigations into several possible fraudulent acts by officials and suppliers was also raised by the AG. The city spent a total of R14.2 million on its highest priority cases.
The report said that, despite the economic recession, the city was able to deliver 10 613 direct permanent jobs and 16 379 temporary jobs.
The report also lists other service delivery achieve- ments like:
# R1. billion in direct new investment.
# An increased number of toilets in informal settlements to 24 954.
# A 26.6 percent reduction in overall water demand.
Independent rating agency Moody's International has also confirmed the city's rating with a stable outlook in its annual rating review, "a further vote of confidence in the city's finances".
The purpose of the mid-year budget and performance assessment is to "institutionalise" the Municipal Finance Management Act and the Treasury's oversight responsibilities with regard to local government finances.
"In terms of section 72 of the Act, the accounting officer (municipal manager) must by January 25 each year assess the performance of the municipality for the first half of the financial year," it said.
And according to an independent Empowerment survey, the city was rated the top South African Metropolitan Municipality for service delivery.
"Although the city has done very well in the delivery of services to its residents and is well ahead of its peers in dealing with infrastructure backlogs, the provision of housing and transport infrastructure are still a challenge," it said.
[email protected]
Published on the web by Cape Times on May 19, 2010. © Cape Times 2010. All rights reserved.