Latest news with #FrancoisRodgers
IOL News
21 hours ago
- Business
- IOL News
KZN MEC considers drastic measures for municipalities facing financial mismanagement
KwaZulu-Natal Finance MEC Francois Rodgers. Image: KZN Treasury Facebook The KwaZulu-Natal Finance MEC Francois Rodgers is considering recommending to national Finance Minister Enoch Godongwana that Section 216(2) of the Constitution be invoked against some KZN municipalities for persistent failure to comply with financial management prescripts. This follows a letter from Rodgers to Godongwana on the state of municipalities in KZN. This process may result in the stoppage of financial transfers to identified municipalities pending the resolution of financial mismanagement matters. 'This is against the backdrop of the recently finalised fourth quarter review of the 2024/25 consolidated municipal budgets performance report. Municipalities are the closest sphere of government to citizens. They are key to service delivery. Failure to comply with financial management prescripts does not bode well for the agenda of developing an ethical and capable state,' Rodgers said. In the third quarter, debt owed to municipalities in KZN stood at R64.3 billion. This increased to R67.1 billion in the fourth quarter, a R2.8 billion increase, which is unsustainable. 'It is alarming that R56.6 billion in the total figure owed to municipalities is debt exceeding 90 days,' highlighted Rodgers. Over the same period, money owed by municipalities increased from R7.4 billion to R9.3 billion – an increase of 25.5%, which Rodgers said was a concern. He also noted with concern that R6 billion, or 64.3 % of the debt owed by municipalities, was outstanding for more than 30 days, in contravention of the Municipal Finance Management Act (MFMA). Furthermore, the number of municipalities with one or more serious financial management challenges increased from 17 in quarter three to 20 in quarter four. Rodgers said there were serious financial problems, as outlined in Sections 138 and 140 of the MFMA, including failure to comply with Supply Chain Management (SCM), debt collection, and credit management prescripts. Rodgers said that KZN Treasury provides technical guidance and support to municipalities in the implementation of their SCM policies as well as standard operating procedures. 'We also induct and train critical units like disciplinary boards. Unfortunately, in one municipality, it was difficult to secure cooperation from officials, and we have had to reallocate resources elsewhere.' Rodgers said that consequence management and accountability (CMA) is intended to support corrective action in respect of transgressions of the laws or rules applicable to municipalities and municipal entities.
IOL News
a day ago
- Business
- IOL News
Alarming R2bn rise in debt owed to KZN municipalities
Finance MEC Francois Rodgers concerned about the state of municipalities Image: Independent Media Archives Ratepayers in KwaZulu-Natal are struggling to pay their accounts, with their debt to municipalities having increased by more than R2 billion in just three months. At the same time, the municipalities also owe rising debt to service providers. This situation arises against the backdrop of the recently finalised fourth quarter review of the 2024/2025 Consolidated Municipal Budgets Performance Report. KwaZulu-Natal Finance MEC Francois Rodgers is concerned about the deepening debt crisis. He is further alarmed by the fact that the situation is worsened by financial mismanagement within municipalities. The MEC has found the persistent failure to comply with financial management prescriptions in municipalities to be so dire that he is considering writing to the national Treasury to request a halt to financial transfers to some municipalities. At least 20 municipalities in the province have been flagged for financial management concerns. The number increased by four between the third and fourth quarters of the 2024/2025 financial year. In a statement, Rodgers said: 'Municipalities are the closest sphere of government to citizens. They are key to service delivery. Failure to comply with financial management prescripts does not bode well for the agenda of developing an ethical and capable state.' In the third quarter, debt owed to municipalities in KZN stood at R64.3bn. This increased to R67.1bn in the fourth quarter, marking a R2.8bn increase, which the MEC said is unsustainable. 'It is alarming that R56.6bn of the total figure owed to municipalities is debt exceeding 90 days,' highlighted Rodgers. 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 Over the same period, he said, the money owed by municipalities increased from R7.4bn to R9.3bn – an increase of 25.5%, which is also worrisome. Rodgers also noted with concern that R6bn, or 64.3%, of the debt owed by municipalities was outstanding for more than 30 days, in contravention of Section 65(2)(e) of the Municipal Finance Management Act (MFMA). Furthermore, the number of municipalities with one or more serious financial management challenges increased from 17 in the third quarter to 20 in the fourth quarter. The department said that in a recent letter to Rodgers, Finance Minister Enoch Godongwana indicated his willingness to invoke section 216(2) of the Constitution and stop all financial transfers to municipalities who have failed to implement unauthorised, irregular, fruitless, and wasteful expenditure prevention and reduction strategies by 31 August. The department said Rodgers was strongly considering making a recommendation for Section 216(2) to be invoked against some municipalities in the province for their persistent failure to comply with financial management prescripts. 'Serious financial problems in terms of Sections 138 and 140 of the MFMA include failure to comply with Supply Chain Management (SCM), debt collection, and credit management prescripts. The KZN Treasury provides technical guidance and support to municipalities in the implementation of their SCM policies as well as standard operating procedures. 'Consequence Management and Accountability (CMA) is intended to support corrective action in respect of transgressions of the laws or rules applicable to municipalities and municipal entities. Municipal councils must display strong leadership in implementing CMA. We urge municipalities to demonstrate a keenness to deal with errant officials as part of efforts to improve service delivery,' Rodgers said in the statement. Chairperson of the Co-operative Governance Portfolio Committee in KZN, Marlaine Nair, said the issue of debt was very serious. 'The collection rate of municipalities and their payment to creditors is below expectations. People are not paying, but a lot of debt is from the government departmentS. The liquidity of municipalities is a serious issue for us, and we have said they should make concessions and offer discounts in order to collect some of the debt.' Lourens De Klerk, IFP MPL and member of the finance committee, speaking on the possible freezing of grants, said, 'If the municipality proves over and over again that they do not have the financial control in place, you have to do something to protect the integrity of the municipalities themselves. Local government is at the centre of service delivery yet it is also the most troubled of the government spheres.' THE MERCURY
The Citizen
24-07-2025
- Politics
- The Citizen
DA takes eThekwini Municipality to High Court over sewage crisis
PERSISTENT sewerage blockages that have plagued many communities in the south of Durban have not yet been addressed through legal action, until now. The Democratic Alliance (DA) is now taking eThekwini Municipality to court over the sewage crisis. Many communities on The Bluff, Wentworth, Merebank and Montclair have been complaining about unmaintained sewerage drains that result in sewage blockages. The DA approached the Pietermaritzburg High Court to compel the municipality to account for the state of the service delivery in the city. Also read: Bluff Residents and Ratepayers Association launch drive to beautify Bluff Showgrounds Today the DA is holding a protest outside court that is led by the Provincial Leader, Francois Rodgers MPL, provincial chairperson Dean Macpherson MP and DA eThekwini caucus leader and councillor Thabani Mthethwa. The matter will be heard in court for two days – today and tomorrow (July 24 and 25). Provincial communications co-ordinator Nqobile Nhleko said in a statement, 'Our case centers on the inability of the ANC-IFP-EFF run municipality to effectively and adequately implement a turnaround plan to fix the infrastructure of the municipality, ensure enough financial resources are allocated to it and adhere to environmental directives by both national and provincial government.' Nhleko said the residents and businesses have borne the brunt of this failure, while the DA has been the only party that has vigorously and enthusiastically driven this issue from day one. 'We have been on the ground with the people of the municipality to ensure victory is achieved on their behalf. 'When our arguments are presented to the court compared to other interested parties, there will be light and day between our well researched, fact-based litigation by our all-star legal team compared to other substandard legal teams who will attempt to put on a 'show' in the desperate need to be seen to be doing something,' Nhleko added. For more Southlands Sun news, follow us on Facebook, Twitter and Instagram. You can also check out our videos on our YouTube channel or follow us on TikTok. Subscribe to our free weekly newsletter and get news delivered straight to your inbox.
The Citizen
23-07-2025
- Politics
- The Citizen
DA takes eThekwini municipality to court over sewage crisis
The DA is taking eThekwini municipality to court over years of sewage spills, failed service delivery and crumbling coastal infrastructure. The case will be heard in the Pietermaritzburg High Court on Thursday and Friday, July 25 and 26, with a public protest planned outside the courthouse. A years-long sewage crisis has plagued communities, damaging tourism, the environment and public health. The DA, which is fully funding the civil suit, is urging residents to join the protest and demand accountability for environmental degradation and the collapse of public amenities. Provincial leader Francois Rodgers MPL, provincial chairperson Dean Macpherson MP, and DA eThekwini caucus leader councillor Thabani Mthethwa will lead the demonstration. 'This case centres on the inability of the ANC-IFP-EFF-run municipality to implement a turnaround plan to fix infrastructure issues and comply with environmental directives from both national and provincial government,' said Macpherson. 'We will hold the failed ANC-IFP-EFF-run eThekwini municipality accountable for the terrible state of service delivery in the city.' Communities such as Umdloti, Tongaat, La Mercy, Mount Moreland, and Westbrook have endured years of sewage spills and infrastructure neglect. Umdloti and Westbrook have suffered the worst effects, with unsafe beaches impacting tourism, the environment and public health. DA Ward 58 councillor Geoff Pullen highlighted the environmental and economic toll. 'We have a sewerage crisis in eThekwini,' Pullen told the Courier. 'We have lost all our Blue Flag beaches due to E. coli contamination from poorly maintained sewer works.' In 2020/21, 12 eThekwini beaches, including Westbrook Beach, Umdloti Tidal Pool and Umdloti Main Beach, held Blue Flag status. Today, none remain. Pullen emphasised the blow to tourism caused by pollution. READ MORE: Sewage spill nightmare in Tongaat | North Coast Courier 'Just think how many tourism jobs we are losing because our sea is polluted. The DA is keen to get our sewerage works functioning properly,' he said. The office of eThekwini Mayor Cyril Xaba could not be reached for comment. However, in a July 8 blog post on the eThekwini Municipality's website titled Enhancing Service Delivery Remains a Goal, Xaba acknowledged the issue. 'We are also responsible for reticulating sewage without spillage and for treating and discharging sewage at an acceptable quality,' wrote the mayor. READ MORE: Sewage spill in Umdloti blamed on sand infiltration and budget constraints | North Coast Courier Stay in the loop with The North Coast Courier on Facebook, X, Instagram & YouTube for the latest news. Mobile users can join our WhatsApp Broadcast Service here or if you're on desktop, scan the QR code below. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
IOL News
19-06-2025
- Business
- IOL News
KZN government to establish a beef production enterprise for King Misuzulu's financial needs
King Misuzulu kaZwelithini will get his own beef production company to fund his cultural events. Image: Independent Newspapers Archives KwaZulu-Natal Finance MEC Francois Rodgers is in the process of establishing a beef production enterprise which will help the Zulu royal family to be financially independent and save the province more than R60 million which is annually allocated to King Misizulu kaZwelithini and the family. This was revealed by the Democratic Alliance chief whip in the provincial legislature Dr Imran Keeka on Thursday. The party was reflecting on its first anniversary of the Government of Provincial Unity, particularly its role and achievements. The party said one of its achievements is that it has strengthened relations with the AmaZulu Royal Household and its Finance MEC is working on a beef production enterprise to ensure the monarchy's fiscal independence. 'The Treasury under Rodgers is working on establishing a beef production enterprise to ensure the monarchy's fiscal independence,' said Keeka. If Rogers succeeds, he will achieve what has been elusive since 1994. There had been talk of creating a Royal Household Trust which previous provincial government administrations had described as the vehicle that was going to sustain the Zulu royal family financially and end its financial dependence on taxpayers who fund the king and the royal family's financial needs. 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 ✕ Reacting to the announcement, the Zulu royal family's spokesperson Prince Thulani Zulu said the family will comment after the MEC has officially informed his Majesty, King Misuzulu kaZwelithini about the details of the enterprise. Another major achievement listed was Rogers' ability to devise a cost-cutting strategy which has reduced the provincial government's projected over-expenditure from R10 billion to R800 million. The plan is now being implemented. The party described its participation in the GPU as a year of positive change for the people of the province, 'who now have a government focused on placing their needs first and realising the province's true potential'. It said the move from a single majority party government to a partnership consisting of KZN's four leading political parties has not been without its challenges, however, there have been notable successes. The party said its participation in the GPU has allowed it to play a key part in critical decision-making that affects the people of the province. These roles include heading KZN Finance Rodgers, Public Works and Infrastructure which is under MEC Martin Meyer, deputy Speaker through Mmabatho Tembe as well as chairing important portfolio committees such as Health, Cooperative Governance and Traditional Affairs and provincial SCOPA( Standing Committee on Public Accounts).
