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UPDATE ON THE IMPLEMENTATION OF THE FINANCIAL RECOVERY PLAN

The Executive Council of Mpumalanga Provincial Government intervened at the Emalahleni Local Municipality, in terms of Section 139 (5)(a) of the Constitution read with Section 139 on the Municipal Financial Management Act. This intervention was informed by a court order which, among other things, required that a financial recovery plan must be formulated. It was detected that the municipality is facing financial crisis and numerous governance, service delivery and institutional challenges.

The process included consultation with amongst others Management and other staff of the municipality, Organised labour, municipality’s principal creditors, SALGA, Save Emalahleni Action Group, Nkangala District Municipality, relevant National and Provincial government departments(Provincial Treasury, Mpumalanga Co-operative Governance and Traditional Affairs, DCoG)

The Financial recovery plan was published on the 14 December 2018 for public comments and written inputs have been taken into consideration in the compilation of the financial recovery plan which holistic in nature. The after considerations the plan was approved by Provincial Government on the 22nd January 2019 and the implementation thereof is critical to ensure financial recovery and sustainable service delivery.

During the assessment of the municipality, there were critical challenges identified on:

* Governance

* Human Resource Management

* Enforcement of By-laws

* Systems of Delegations

* Committees of Council

* Infrastructure and service delivery and;

* Financial Management

In one of the immediate steps provided in the Financial Recovery Plan is the establishment of the Cash flow Management Committee of which the municipality has established with high level terms of reference of which amongst others is the development and implementation of the cash management plan.

The Financial Recovery Plan provides seven (7) strategies to address the identified critical challenges to be that relate to activities that must be institutionalised and performed by various municipal officials, as part of their routine duties, and who have been appointed to such positions and given specific roles, responsibilities and delegations.

The Financial Recovery Plan was presented and noted by Council for immediate implementation on Thursday, 28 February 2019.

As part of recommendations, the municipality must report monthly on the implementation of this Plan as required in terms of Section 146(1) (c) of the MFMA to the MEC Finance, including to the Provincial Executive, National and Provincial Treasury, DCoG and Mpumalanga CoGTA and monthly progress reports on the implementation of the Plan must be submitted by the Municipal Manager through the Executive Mayor to Council including the progress published on the municipal website.

The municipality is committed into the implementation of the Financial Recovery Plan and has an ongoing Revenue Enhancement Committee that meets weekly and supports the implementation thereof. We send a request to the community members and businesses for support and co-operation with the Financial Recovery Plan strategies in particular with the payment of services rendered by the municipality.

For more information on the Financial Recovery Plan please visit the municipal website on www.emalahleni.gov.za

 

Issued by Emalahleni Local Municipality Communications Unit

For more information please contact Mr Kingdom Mabuza on 0823507677