Latest news with #KZNTreasury
IOL News
3 days 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
18-06-2025
- Business
- IOL News
How KwaZulu-Natal's new electronic procurement system will ensure timely payments and combat corruption
KwaZulu-Natal Finance MEC Francois Rodgers believed that the province's new e-Procurement system would be a game changer when it comes to the quick payment of service providers, ensuring that government departments do not procure without having money. Image: KZN Treasury Facebook With the introduction of the new Electronic Procurement System (e-Procurement) in the KwaZulu-Natal government, service providers will be paid without delays, while corruption gaps will be sealed. This was revealed when the KZN Finance Department's information technology specialist, Bongani Shezi, explained the system at a media briefing in Pietermaritzburg on Tuesday. The National Treasury, which approved and adopted the system from the national Department of Forestry, Fisheries, and the Environment (DFFE), will not pay for using it, but will only spend between R3 million and R5 million for set-up costs. The system would be fully implemented in the province between January 2026 and April 2027 through selected departments. Currently, KwaZulu-Natal will be the only province in the country to use it. 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 ✕ In terms of operations, the system would kick in soon after a line manager identified the items needed by his or her team and got budget approval from the head of the department. The supply chain manager would then log into the system, which would automatically go to the central supplier database, which provides a list of companies that supply the required items. The system would ask the budget controller how much was available for the purchase, and it would do the quotation based on the available budget. 'The system would look at the commodity and select the suppliers, and if you want the item to be delivered in Mtubatuba (KwaZulu-Natal north coast), then it would pick suppliers around Mtubatuba,' said Shezi. He said the departments will use the system to appoint the bid evaluation committee members. 'When the documents are being evaluated, each one of them (members) would have to come into the system and do the scoring on the system, and based on the scoring, the system would then make a recommendation,' said Shezi. He said once the quotations come in, they get processed, and then the contract gets awarded automatically. 'The system would do your price because that's what comes in from quotation, depending on the service provider in terms of whether they are QSE (Qualifying Small Enterprise), rural, or township-based. 'It would then recommend the service provider, but if officials override the service provider and the system would ask, 'Why are you overriding this service provider that was recommended by the system?'' he said. Shezi said the signed contract with the start and end dates and contract amount, which would be compiled by the legal services, would be uploaded into the system. 'The end date is what the system uses to send emails to the supply chain managers to remind them that this contract is going to come to an end.' He said once the purchased items are delivered, the service provider submits an invoice, which will be captured by the system to track its movement from one person to another. He said the invoice would then go through the system to the responsible manager, who will authorise the payment. It would also go to the internal control manager, who must also check if the supporting documents are there, and then it goes to the supply chain manager, who would confirm that everything is captured correctly. Its last stop would be the finance for the release of the money to pay the service provider through the system. Shezi said someone would monitor the movement of the invoice because the government needed the invoices to be captured faster, since the system would also be used for payments. He said the provincial Treasury was looking at enhancing the system's network connectivity at all provincial offices, especially in rural areas. 'If a supplier does not have connectivity, the supplier will be able to go to a government office because the connectivity is going to be there in terms of uploading documents and checking what bids are available for quotations,' said Shezi.
Eyewitness News
08-06-2025
- Sport
- Eyewitness News
Over 400 police officers lace up running shoes for Comrades Marathon
JOHANNESBURG - More than 400 police officers have laced up their running shoes alongside thousands of athletes in 2025's Comrades Marathon. KwaZulu-Natal's police commissioner said they're not the only officers on the route, as hundreds more have been deployed to ensure safety and security. ALSO READ: - Police presence in KZN beefed up for Comrades Marathon - KZN Treasury banking on Comrades Marathon to give local tourism a boost The 98th edition of the ultra-marathon began at 06:45 on Sunday morning, marking the down run from Pietermaritzburg to Durban. The race in 2025 features over 22,000 runners - the largest number of participants in its history. Provincial police commissioner Nhlanhla Mkhwanazi has also urged racers to remain cautious. 'As you enjoy running, make sure you don't increase the number of casualties that end up in hospital because of negligence. We have medical facilities in the province, but we don't want to use them unnecessarily. We want runners to arrive safe.'
The Citizen
04-06-2025
- 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
02-06-2025
- Business
- IOL News
MEC Rodgers to implement Cash Management System (CMS) for municipal financial stability
KwaZulu-Natal Finance MEC Francois Rodgers. Image: KZN Treasury Facebook FINANCE MEC Francois Rodgers is o a campaign to ensure that municipalities in the province are financially stable and capable of delivering services to their communities. The Department pff Finance announced on Monday that starting in June until December 2025, MEC Rodgers will lead the implementation of a Cash Management System (CMS) at seven municipalities in KZN. One of the municipalities set to benefit from this initiative is the Impendle Local Municipality. It was revealed recently that the municipality failed to pay wages and benefits in full and on time. This situation has raised alarm among employees, who are concerned about the impact on their livelihoods and the municipality's ability to manage its financial obligations effectively. The CMS aims to resolve a myriad of financial management challenges at the local government level, including: Implementation of debt collection and credit control policies. Overspending. Management and utilisation of conditional grants. Ultimately, the department said, CMS aims to improve service delivery, ensure timely payments to service providers, and reduce budget deficits at the local government level, among other initiatives. 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 ✕ It said this week, MEC Rodgers will convene a high-level gathering involving Mayors, Municipal Managers, Chief Financial Officers, and Project Champions. The targeted municipalities for the implementation of the CMS are: Ugu District. Richmond. uMngeni. Nkandla. iMpendle. uMfolozi. Ulundi. KZN Treasury is constitutionally mandated to monitor as well as support the financial functions at municipalities. The seven municipalities were identified as potential beneficiaries for the CMS after assessments by the KZN system may be extended to other municipalities based on assessments. MEC Rodgers stated: 'KZN Treasury is empowered by section 5 of the Municipal Finance Management Act (MFMA) to perform oversight, monitor the financial functions, as well as to provide technical support and guidance to assist municipalities by instilling effective financial management practices.' 'The team at KZN Treasury and I are determined to act in accordance with our constitutional obligations so that we may succeed in the mission to establish an ethical and capable state. Municipalities are the closest sphere of government to communities. KZN Treasury is determined to empower and create capacity at municipalities as part of its mandate,' he added. THE MERCURY
