Hemi300c
Honorary Master
The KwaZulu-Natal government has taken over the financial administration of the ANC-led Umzinyathi District Municipality after it spent millions it does not have.
The MEC for cooperative governance, Nomusa Dube, announced yesterday that from next week a team of financial experts appointed by the provincial government would run the municipality'sfinances until they improved.
Umzinyathi joins the Abaqulusi, Imbabazane, Ugu, Uthekela, Indaka and Mtubatuba municipalities, which are under administration.
The Umzinyathi municipality, in northern KwaZulu-Natal, has spent R303-million it does not have since 2010, in the hope that a R300-million loan it applied for from the Development Bank of Southern Africa would be approved. But the loan was delayed because of the municipality's unhealthy bank balance. The municipality has recorded a repeated deficit on its bank account. In 2010, it had a deficit of R80-million, in 2011 the deficit was R145-million, last year it was R126-million and in January it stood at R59-million.
Dube said her department's analysis had uncovered weak budgetary controls. The municipality budgeted R22000 in the 2011/2012 financial year for legal costs, but ended up spending R653 000.
"There has been a significant increase in employment of security guards at the municipality, particularly in the office of the mayor. For the 2011/2012 financial year the municipality incurred costs of R1.575-million (R131278 monthly) for four security guards."
An assessment by the provincial treasury found the municipality was technically insolvent.
The municipality also appointed a consultant as its chief financial officer for a-year-and-a-half at a salary of R114786 a month.
TIMES LIVE
Comment:-
The only thing the cANCer can run is anything into the ground.
The MEC for cooperative governance, Nomusa Dube, announced yesterday that from next week a team of financial experts appointed by the provincial government would run the municipality'sfinances until they improved.
Umzinyathi joins the Abaqulusi, Imbabazane, Ugu, Uthekela, Indaka and Mtubatuba municipalities, which are under administration.
The Umzinyathi municipality, in northern KwaZulu-Natal, has spent R303-million it does not have since 2010, in the hope that a R300-million loan it applied for from the Development Bank of Southern Africa would be approved. But the loan was delayed because of the municipality's unhealthy bank balance. The municipality has recorded a repeated deficit on its bank account. In 2010, it had a deficit of R80-million, in 2011 the deficit was R145-million, last year it was R126-million and in January it stood at R59-million.
Dube said her department's analysis had uncovered weak budgetary controls. The municipality budgeted R22000 in the 2011/2012 financial year for legal costs, but ended up spending R653 000.
"There has been a significant increase in employment of security guards at the municipality, particularly in the office of the mayor. For the 2011/2012 financial year the municipality incurred costs of R1.575-million (R131278 monthly) for four security guards."
An assessment by the provincial treasury found the municipality was technically insolvent.
The municipality also appointed a consultant as its chief financial officer for a-year-and-a-half at a salary of R114786 a month.
TIMES LIVE
Comment:-
The only thing the cANCer can run is anything into the ground.
