Category: Industry

A five-year assessment of provincial municipalities in the North West Province has revealed that 13 of the 22 municipalities are in financial dire straits, with service delivery on the brink of collapse.

The analysis of a five-year assessment (2015/2020) of provincial municipalities was presented by Finance MEC Motlalepula Rosho; Head of Department, Ndlela Kunene and Chief Director for the Municipal Support Programme, Linda Nengovhela, as the department kicked off a process of giving feedback to municipalities that are in financial distress.

The feedback analysis of three municipalities, including Dr Ruth Segomotsi Mompati, Naledi and Maquassi Hills, was done via virtual link and was in preparation towards the implementation of chapter 13 of the Municipal Finance Management Act (MFMA) to assist municipalities to resolve their financial problems.

Rosho said the municipal audit outcomes show that over half of municipalities’ financial systems and governance and financial information are deficient.

Rosho warned that these widespread weaknesses leave municipalities vulnerable to financial mismanagement, which subsequently turns into a crisis where there are no remedial actions put in place.

“Continued tolerance for chronic and serious financial problems undermines the confidence of the public and of investors alike. It also compromises the ability of the municipality to perform its basic functions and deliver services to residents and firms,” Rosho said.

The MEC acknowledged that despite Provincial Treasury doing its best to provide support to municipalities, the support did not yield the desired outcome.

The province has, however, recorded marginal improvement in the financial performance of the supported municipalities, Rosho said.

Bloated structure

Among the challenges besetting provincial municipalities include a bloated structure/organogram not being fit for purpose, the appointment of incompetent people; failure to raise and collect own revenue and the adoption of unfunded budgets.

Rosho said employing people who are not skilled and trainable has brought municipalities to untenable situations.

“Municipalities need to have competent and skilled managers, and people who are up to the task, particularly in the Budget and Treasury Office (BTO), which is the bedrock of municipal performance.”

Rosho said the technical team presented the feedback of the five-year financial assessment, noting that the picture presented in terms of Section 138 and 140 of the MFMA, leaves much to be desired.

“The culture of planning to spend more resources than available is wrong and cannot be changed by simply adding more resources. Instilling fiscal discipline and consequence management are critical to creating financially viable municipalities.

“This is one area that we have left unattended and we have relegated our responsibilities, and are scared to be unpopular as managers. When you lead, you need to take unpopular decisions as leaders,” said Rosho.

Hold failing managers accountable

The MEC condemned the culture of not holding managers, who are failing in their duties accountable.

Political and administrative leadership of municipalities, including South African Local Government Association (SALGA); Cooperative Governance, Human Settlement and Traditional affairs (CoGHSTA) and National Treasury attended the meeting. They made recommendations on what needs to happen going forward, in order to assist municipalities to perform their mandate to communities.

The mayors are expected to table the report to their respective councils within 30 days and provide provincial treasury with council resolution.

The department said the collective agreed that a Financial Recovery Plan needs to be implemented to improve the financial sustainability of distressed municipalities.

Source: South African Government News Agency

Police Minister, General Bheki Cele, will today, visit businesses and shopping complexes in Durban and Pietermaritzburg, affected by wide spread looting during last week’s campaign of violence in Gauteng and KwaZulu-Natal.

“The purpose of the visits is to assess law enforcement efforts to maintain law and order, and ensure that calm has been restored in the affected communities,” the South African Police Service (SAPS) said in a statement.

Cele will visit Liberty Mall in Pietermaritzburg, followed by Pavilion Mall in Westville and Gateway, which is also situated in Durban.

Source: South African Government News Agency

Acting Minister in the Presidency, Khumbudzo Ntshavheni, says all hands are on deck to restore normalcy in violence-struck areas in KwaZulu-National and Gauteng, with the major economic corridors and routes used to transport supplies from KZN having reopened.

The Minister on Friday afternoon confirmed that both the N2 and N3 highways have reopened.

“The transportation of key food stuffs, medical supplies and fuel to all parts of the country has commenced and therefore, the report of food shortages and fuel will abate.

“SANRAL [South African National Roads Agency] is repairing the damaged part of the highway in Mooi River and has removed barriers on the stretch of the N3, but the traffic is flowing along the N3,” Ntshavheni said.

The Minister said while the situation remains tense in some areas, normalcy is gradually returning in others, with Gauteng having no new incident reports overnight on Thursday.

Government has also engaged key role players in the Economic Cluster to find ways of rebuilding the economy, including the factories that have been damaged, reopening businesses and minimising the loss of jobs.

“We are working on the immediate plan for ensuring economic recovery and restoring the confidence of our people, our industries and our investors.

“The Department of Trade and Industry and Competition has set up an email address — [email protected] — where companies can report potential imminent and actual looting taking place in their areas or establishments, so that it can be rerouted to the NATJOINTS [National Joint Operational and Intelligence Structure] as soon as possible,” the Minister said.

Close eye on hotspots

Ntshavheni said while no new incidents were reported in Gauteng overnight, the number of incidents remained at 58 since the violence started.

“An additional six deaths were reported, and the cumulative deaths now stand at 32 in Gauteng. An additional 137 arrests were made, and the cumulative arrests are now 862 in Gauteng.

“The South African National Defence Force (SANDF) deployment, supporting the SAPS [South African Police Service] and Metro Police, remains in Gauteng at the potential hotspots.

“There are deployments across the country because we don’t want to find people, who have been instigating the violence, taking advantage of the other provinces,” Ntshavheni said.

Over 1 000 cases reported in KZN

In KwaZulu-Natal, the Minister said over 1 488 cases were reported in the province overnight, with nine additional deaths, bringing the total number of deaths to 180.

“An additional 214 arrests were made, which brings the cumulative arrests to 1 692. Law enforcement agencies continue to closely monitor the situation in that province, which is stable but fairly tense in some areas.

“Furthermore, community structures in the identified areas have been meeting with SAPS officials on a daily basis to assess the situation and go through plans for the day to protect communities,” she said.

Two arrested for possession of unlicensed firearm

The Minister said two suspects, aged 16 and 23 years, were arrested in Mobeni, KZN, on 14 July, after they were found in possession of an unlicensed firearm and 4 000 rounds of ammunition.

“The suspects were charged for possession of an illegal firearm, possession of rounds of ammunition and possession of suspected stolen material. On 15 July 2021, on Lester Road in Mobeni, 1 050 cartridge boxes were found abandoned. On the same day on Lester Road, 900 cartridge boxes were found abandoned.

“A number of people were also found trying to syphon fuel from underground tanks at the petroleum service station in Pinetown in Durban.

“Hazardous items that were targeted by looters have proved to be related to the high number of fatalities,” the Minister said

Attempts to recover stolen goods

Meanwhile, the Minister said recovery operations of stolen items are underway, as the police continue to receive tip-offs from concerned residents about those who were involved in the looting of shopping malls and stores.

Source: South African Government News Agency

Minister of Communications, Stella Ndabeni-Abrahams, and Eastern Cape Premier, Oscar Mabuyane, have met with the Eastern Cape SAPS Senior Management in Mthatha today.

Acting OR Tambo District Commissioner, Brigadier Vukile Ntandane welcomed the delegation and emphasised the police’s commitment to ensure safety and stability in the district.

He presented the multi-disciplinary operations that are taking place around OR Tambo in maintaining order in the vicinity, following the interventions made by both Justice Crime Prevention and Security (JCPS) and Economic Clusters.

The stakeholders are expected to lead a community awareness drive against looting and vandalism in the OR Tambo District.

“The drive is planned to take form of a motorcade compromising stakeholders from the security cluster, business, religious leaders and taxi industries,” the SAPS said in a statement.

Source: South African Government News Agency

President Cyril Ramaphosa has placed high on the agenda businesses crippled by looting and property damage in the wave of violent attacks in KwaZulu-Natal and parts of Gauteng.

In a national address on Friday evening, the President assured that every effort will be made to resurrect enterprises damaged in what he called a failed “attempted insurrection”.

“A team in the Presidency and National Treasury is hard at work to develop a comprehensive support package for Cabinet’s consideration,” the President said.

While the President said a further announcement in this regard will be made soon, he noted that progress is being made to secure logistics infrastructure, with the N3 highway between eThekwini and Gauteng being re-opened.

Security forces, the President said, are in place to keep vital supply routes open.

“The security forces are working with business to ensure the safe transport of fuel, food, oxygen, pharmaceuticals, chemicals and other critical supplies.”

Operations at the ports of Durban and Richards Bay are being restored to enable the resumption of exports and imports. Regulations have been issued, in terms of the Competition Act, to enable firms involved in the supply of essential goods to share information about the availability and demand for certain goods.

This, the President said, is to help prevent shortages of essential goods and promote the equitable distribution of scarce essential goods across the country.

“These measures will ensure that supply chains remain intact. I want to emphasise that there is no shortage of food or supplies in most parts of the country, and that panic buying will only worsen the situation.”

In a briefing earlier on Friday, Acting Minister in the Presidency, Khumbudzo Ntshavheni, said the Department of Trade and Industry and Competition has set up an email address — [email protected] — where companies can report potential imminent and actual looting taking place in their areas or establishments.

Cases will be rerouted to the National Joint Operational and Intelligence Structure for further urgent action.

Safeguarding key infrastructure

President Ramaphosa said in addition to supporting the police to maintain order, South African National Defence Force (SANDF) members have been deployed to protect key infrastructure and commercial sites that are vital to the functioning of the economy and the uninterrupted provision of services to citizens.

The President emphasised that specialised units of law enforcement agencies are working around the clock to locate and apprehend those responsible for planning and coordinating this violence.

“While our security forces are steadily establishing control on the ground, the effects of this violence will be felt by all South Africans in the days, weeks and months to come.

“The damage that has been done to vital economic infrastructure will take time to repair.

“This, in turn, will have an impact on the availability of food, fuel, medicine and other supplies not only in South Africa, but across the region.”

Economic impact and social relief

The President warned that as businesses were damaged at a critical time when the country was struggling to recover from the impact of the Coronavirus pandemic, further job losses can be expected.

“Ultimately, it will deepen poverty and cause even greater hardship for millions of South Africans.”

The widespread looting of the past week is likely to fuel a further increase of COVID-19 infections. The COVID-19 vaccination programme in KwaZulu-Natal and Gauteng has also been interrupted, along with other services that were impacted by the violence.

The President said now more than ever, households and businesses would need a helping hand.

“It is imperative that we take further steps to provide support to households and to help businesses to restock and rebuild.

“We are in the process of providing immediate food relief to households. We are targeting areas affected by the looting and where people have no access to food.”

Provincial Departments of Social Development and the South African Social Security Agency (SASSA) will use their remaining budget in the Social Relief of Distress programme to provide support in the form of food parcels, cash and food vouchers.

“We are working hard to bring all SASSA offices into operation. Cash pay points are expected to resume services from the 19th of July in all the areas that have been declared safe to operate,” President Ramaphosa said.

Solidarity Fund

To assist with the immediate needs of affected communities, the Solidarity Fund has established a Humanitarian Crisis Relief Fund to assist those in need.

The President called on all South Africans to support this fund.

“We appreciate the support of the many companies, organisations and faith-based groups that have already started providing support to families in distress.

“Social partners have been meeting to discuss a range of measures which can be implemented to provide immediate relief within our fiscal means. This includes the provision of emergency food relief and other assistance to those in greatest distress.

“We will also help our small businesses, including those in townships and rural areas, to heal from the damage they have suffered.

“Our business people provide important goods and services in our communities, and we will help them to rebuild their businesses.”

Source: South African Government News Agency

A man suspected to be dealing in drugs was arrested on the N3 freeway during a crime prevention roadblock on Thursday.

Members of the Welkom and Bethlehem K9 Unit stopped a White Polo Vivo near Harrismith, travelling from Johannesburg towards Durban.

According to police, upon searching the vehicle, two large bags containing 60 000 empty capsule containers were found. A further search led to the discovery of eight 1kg plastic bags containing heroine with an estimated street value of R3 000 000.

The 38-year-old suspect was arrested and is expected to appear before the Harrismith Magistrate’s court soon to face charges of drug dealing.

The case will be investigated further by the Hawks.

Free State Provincial Commissioner, Lieutenant General Baile, has commended the police officers on their meticulous work.

“These operations have been successful in curbing crimes such as peddling various types of drugs. My appreciation goes to members for their dedicated efforts,” Lieutenant General Baile Motswenyane said.

Source: South African Government News Agency