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IOL News
6 days ago
- 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
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
