Latest news with #FrancoisRodgers
IOL News
2 days ago
- Business
- IOL News
KZN Finance MEC highlights says municipalities are paying the price for poor national decisions
KwaZulu-Natal Finance MEC Francois Rodgers and provincial treasury's municipal finance chief director Farhad Cassimjee addressing representative of municipalities in Pietermaritzburg on Wednesday. Image: Bongani Hans KwaZulu-Natal Finance MEC Francois Rodgers, who described himself as a straight talker when it comes to money matters, has blamed the national government's 'bad policy decisions' for the suffering of the municipalities and key provincial government departments. He was addressing mayors, municipal managers, and chief financial officers of seven municipalities who attended a workshop on the implementation of the Cash Management System (CMS) in Pietermaritzburg on Wednesday. The CMS is expected to help the municipalities monitor and control the movement of money in and out of their fiscal system. He said most municipalities were not interested in their financial flow until they ran out of money to deliver services, service debts, and pay salaries. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading He said the Government of Provincial Unity (GPU) inherited a process of budgeting that would 'never get us out of trouble.' He said the province was facing a huge crisis in the education, health and social development, and transport departments. 'Lots of what we are facing now is not out of our own making, [but] it is because post-COVID, and by some really bad policy decisions at the national level, like paying R600 million to state-owned entities when that money could have come to our provincial and local governments. 'We now have R5.7 trillion debt and we have to pay R1.2 billion interest on that debt,' said Rodgers. He said bad policy decisions led to the government failing to save money, but instead, inequitable shares had to be cut by R70 billion over four years. He addressed the municipalities a few hours after the provincial cabinet and Premier Thami Ntuli held a meeting about the state of local governments. 'One of the issues that the premier made clear is that both Cooperative Governance and Traditional Affairs, and Treasury, need to ensure that we get clean audits in the entire province,' he said. Rodgers said when it came to money matters, he makes sure that 'there has to be straight talk'. 'There is no grey area when it comes to money, and if you are gonna spend money and you put politics ahead of principles, you are gonna make the wrong decisions. 'But if you put principles ahead of politics, and you implement your Municipal Finance Management Act and Public Finance Management Act, and any other legislations, then you are deciding for the right reasons,' said the DA provincial leader. He said only political will would help the municipalities to transform their pattern of expenditure and patterns of poor fiscal control.
The Citizen
3 days ago
- Business
- The Citizen
3 KZN municipalities to begin system training for better service delivery
3 KZN municipalities to begin system training for better service delivery Three KZN municipalities — uMfolozi, Ulundi and Nkandla — will travel to Pietermaritzburg this Thursday to begin training on the Cash Management System (CMS), a move aimed at enhancing effective service delivery. The training forms part of a broader initiative by KZN Treasury to improve financial efficiency and curb overspending and wasteful expenditure at local government level. ALSO READ: KZN municipalities lauded for clean audits According to Finance MEC Francois Rodgers, the CMS will be rolled out in seven municipalities between now and December. The system is designed to: • Improve service delivery • Ensure timely payments to service providers • Reduce municipal budget deficits 'This CMS roll-out will help strengthen financial accountability at local government level,' said Rodgers. The high-level workshop will bring together mayors, municipal managers, chief financial officers and project champions, who are expected to sign a formal acknowledgement of understanding and commitment pledge. Read the full story in the ZO Weekender Don't have the ZO app? Download it to your Android or Apple device here: HAVE YOUR SAY Like our Facebook page and follow us on Twitter. For news straight to your phone invite us: WhatsApp – 060 784 2695 Instagram – zululand_observer At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
IOL News
29-05-2025
- Business
- IOL News
KwaZulu-Natal 2025 budget re-tabled with no changes despite VAT increase withdrawal: Here's why
KwaZulu-Natal's 2025/26 Provincial Budget was officially re-tabled on Thursday by MEC for Finance Francois Rodgers following a national fiscal disruption caused by the withdrawal of the proposed VAT increase. Despite this unexpected development at the national level, Rodgers confirmed that the province's fiscal framework remains entirely unchanged. In his address to the Provincial Legislature, Rodgers reaffirmed the sequence of events that led to the re-tabling. The budget had initially been tabled on March 25, 2025, within the stipulated two-week window following the national budget announcement on March 12, as per Section 27.2 of the Public Finance Management Act (PFMA). However, with the subsequent withdrawal of the Division of Revenue Bill and the Appropriation Bill on April 24, due to the removal of the VAT increase and a revised fiscal framework, Rodgers was compelled to withdraw the provincial budget and formally communicated this to the Legislature on May 7. Rodgers said, 'Fortunately, as confirmed in a formal allocation letter to the Province by National Treasury, the withdrawal of the proposed VAT increase has had no impact on the Provincial Budget.' He further highlighted that, 'There has been absolutely no change to the fiscal framework in the Province of KwaZulu-Natal because of the withdrawal of VAT. Our budget remains a total of R158.4 billion.'
The Herald
28-05-2025
- Business
- The Herald
KZN municipality to give poor 10,000 litres of free water a month
The budget is pro-poor, Shandu said, adding that most people there live below the poverty line. 'To provide relief for the indigent residents, the council has endorsed the provision of 10,000 l of free water to registered indigents. Our assumption is that a 2,500 l tank should be able provide a family of four with a week's supply of water, if used conventionally.' He called upon poor households to register to benefit for the programme. 'This programme is for those who are unemployed and who have a family income of R5,000 or less a month. 'We strongly believe that this budget reflects a strong commitment to pro-poor service delivery, infrastructure development and financial sustainability.' Shandu took a swipe at the DA for protesting after the council proposed a 13.5% water tariff hike. The DA, led by provincial leader Francois Rodgers, called for no increase. Rodgers said the municipality should not increase water tariffs while it fails to deliver services. TimesLIVE
IOL News
25-05-2025
- Business
- IOL News
New wealth fund proposed for KwaZulu-Natal to boost projects
KwaZulu-Natal Finance MEC, Francois Rodgers has said a new wealth fund will provide funding for those involved in projects that are public-private partnerships . Image: Supplied A new wealth fund has been proposed for KwaZulu-Natal, aimed at ensuring the availability of finance for key catalytic projects that have the capacity to create employment. The fund will primarily service projects that are partnerships between the government and the private sector and ensure they are completed on time and not hamstrung by financing. This wealth fund will provide those involved in the partnership with quicker funding and lower interest rates than those offered by commercial banks, potentially reducing the need to apply for project funding through the Development Bank of Southern Africa (DBSA). According to KZN Finance MEC Francois Rodgers, the wealth fund will not rely solely on government contributions as private entities will also contribute. He added that a bank has already committed to participating in the fund. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ The establishment of the fund is one of several resolutions taken during a meeting between the government and the business community last week. The meeting had been called to brief the business community on the new regulations on Private Public Partnerships (PPP) that are set to come into effect next month. Other resolutions include the creation of a single-purpose vehicle designed to fast-track project approvals and ensure timely completion. 'This initiative is a huge step in ensuring that we undertake key projects, create economic growth, and generate job opportunities to grow the economy of this province,' said MEC Rodgers. 'On Friday, officials from the national treasury came to brief the business community on these changes to public-private partnerships (PPP). We had expected about 50 business people to attend, but over 100 attended,' added the MEC. He explained that the purpose of the new regulations is to facilitate easier and quicker formation of PPPs to deliver projects that could benefit even municipalities. 'You know that a PPP, due to the current regulations, could take up to five years to establish.' He said the new PPP regulations will attract private capital to public projects, providing financial benefits for private investors, as the project will remain under government ownership once completed. 'The fund will ensure that projects undertaken under the PPP framework have access to capital, which will be provided more quickly and at lower interest rates than those offered by commercial banks. This will be for catalytic projects; you cannot simply apply to this fund for a fast-food restaurant,' said Rodgers. He noted that the fund will differ from the current KZN Growth Coalition, as it will involve external funding sources, not just government contributions. Additionally, he added, it was agreed to also establish a single-purpose vehicle, overseen by the provincial treasury, to ensure that projects are approved promptly and, most importantly, are not delayed. 'The priority here is to trigger projects that will stimulate investment, create jobs, and grow the economy of the province,' said the MEC. However, economic expert Dawie Roodt expressed concerns about the fund. He said the primary task for the government is to create an environment where businesses can thrive. 'The role of the state is to provide essential services, such as safety, infrastructure, healthcare, and education, not to initiate various new projects. The government should focus on creating a friendly environment and allowing the private sector to take the lead.' THE MERCURY
