Latest news with #Mavuso
The Citizen
4 days ago
- Business
- The Citizen
Decisive intervention needed for municipal performance — BLSA
The state of financial management in municipalities is mirrored in the level of basic service delivery all over the country. The Auditor General's report on municipalities shows that decisive intervention is needed to improve the performance of local government performance is needed. Busisiwe Mavuso, CEO of Business Leadership South Africa (BLSA), writes in her weekly newsletter that the financial state of our municipalities is shocking and a serious constraint on economic growth. 'Only one of the eight metros, Cape Town, received a clean audit, with Buffalo City, Tshwane, Mangaung and Nelson Mandela Bay getting qualified audits indicating material failures in their financial management. 'Johannesburg, eThekwini and Ekurhuleni received unqualified audits but with findings, indicating that the accounts are reliable but that some matters need attention. The worst opinion of an auditor, a disclaimer, means the auditor has not been able to form an opinion on the financial statements at all. Sixteen municipalities were seriously censure with a disclaimer.' ALSO READ: 'Same story year after year': MPs unhappy as Auditor-General reveals local government audit outcomes She says our metros are the economic hubs of our country, and it is completely unacceptable that most of them cannot get basic financial management right. 'They have budgets in the billions, such as Johannesburg, that will spend almost R90 billion this year but cannot manage that money adequately. Public must vote to make their voice hear about municipal performance 'If management in private companies is unable to produce reliable accounts that auditors are content to sign off, shareholders would revolt. In the case of our local government, the shareholders are the public who must exercise their votes.' Mavuso says what makes it even more galling is that the state of financial management mirrors the level of basic service delivery. She points out that Johannesburg, which most of our biggest companies call home, has been in a state of gradual decline for many years. 'Traffic lights seem to have been abandoned, local roads left to decay into unpassable tracks. President Cyril Ramaphosa, two months ago, decried the state of the city, which is meant to serve as host of the G20 later this year, promising an intervention from national government. 'Intervention is sorely needed. As the Auditor General makes clear in her report for the 2023/2024 year, the challenges are driven by a lack of financial management skills and vacancies. There simply are not enough qualified people working in local government to ensure the accounts are done properly, despite the billions at stake.' ALSO READ: Hlabisa questions abilities of local government leaders as AG report shows no improvement in municipalities There has been some improvement in municipal performance with less disclaimers Mavuso says there has been evidence of improvement in some areas. The number of municipalities getting a disclaimer has fallen to 14 from 28 in the 2020-21 year, when local government elections saw new councils elected. That improvement, the Auditor General says, can be attributed to good support from provincial treasuries to assist municipalities' financial function. However, she says that cannot be said of the metros, which the Auditor General says continued to regress since 2020-21, with three downgraded in the last year. She singled out Johannesburg and Tshwane for not budgeting adequately for infrastructure maintenance. She also bemoaned the culture of municipalities approving unfunded budgets, expenditures that cannot be covered out of the revenue the municipalities receive. Mavuso says it should concern all South Africans that elected councillors can willingly approve spending plans for which there simply is no money. 'That is not budgeting – it is reckless spending. 'Controls over expenditure are also problematic. Johannesburg tops the list in terms of unauthorised expenditure, with R2.76 billion. Tshwane is not far behind at R2.15 billion. Beyond the numbers, the Auditor General also reviews municipalities' performance reports, which municipalities are legally required to produce to show how they are doing against their own targets. 'She says there has been no improvement since 2020-21, with only 26% meeting the Auditor General's quality standards on submission. Thanks to corrections made after submission, 52% ended up meeting standards, but that means almost half still fail to.' ALSO READ: Questions about municipal manager's qualifications after R927 000 spent on 22 laptops – report Auditor General's report highlights failure in municipal performance The Auditor General's report is a very helpful spotlight on one of the drivers of service delivery failure in local government, Mavuso says. 'This is now a national priority and one of the biggest constraints on economic growth. Service delivery failure often means businesses cannot function. 'It has been given national prominence through Operation Vulindlela 2.0, the new phase of the successful unit led by the presidency that has been decisive in tackling the electricity crisis and the logistics crisis, among other reforms. 'The need for decisive intervention in municipal performance is very clear. We have to get people into municipalities who are capable of delivering on action plans that will improve the financial function.' The Auditor General also pointed out that weak information technology, again driven by a lack of skills and controls, is a key reason for the municipal crisis and helps paint the picture of what Operation Vulindlela must contend with. Mavuso says an army of highly capable finance professionals is going to be needed. 'There is also a much-needed review underway of the 1998 white paper on local government that has the potential to overhaul policy and find new ways of supporting local government, ensuring better coordination between local, provincial and national. 'The white paper should elevate the importance of consequence management, especially where there is a lack of performance and continuous service delivery issues.' ALSO READ: Ineffective governance at centre of municipal dysfunction – IoDSA Investec report shows what South Africa could have been Mavuso says she was also struck by a report from Investec last week showing how different the country would be today if we had stuck to the 4.5% growth rate we regularly achieved until 2008. 'In 2024, the economy would have been 40% bigger than it was. 'Government revenue would have been R800 billion higher than it is. Just think about that number and the huge arguments we just had about increasing VAT to raise R75 billion over the next three years. Had our economy maintained its trajectory, the government would have little debt, and there would be ample room to grow spending on public services. 'Unemployment would also be sharply lower, with a third fewer people out of work. It was a helpful reminder of how much we lost through poor policy and poor performance. Of course, there were other factors that played a role, including weaker commodity prices and Covid. 'But other countries managed to recover their growth rates with global growth averaging around 3%, while we have been stuck at 1% or less.' Mavuso says when we think of the cost of poor municipal performance and other structural constraints on our growth, it helps to imagine how different things could be. 'Our people are condemned to live poorer lives, with many more out of jobs. Reports like the Auditor General's show us what must be done. We must be serious about doing it.'
The Citizen
19-05-2025
- Business
- The Citizen
Budget 3.0: time to fix our economy
Investors will be watching Budget 3.0 closely on Wednesday afternoon to see if it includes measures that will benefit the economy. With Minister of Finance Enoch Godongwana trying this week for a third time to get Budget 3.0 passed, he has a good opportunity to introduce measures that will help to fix South Africa's economy. Busi Mavuso, CEO of Business Leadership South Africa, says in her weekly newsletter that it is critical that Budget 3.0 strikes the right balance of fiscal prudence. 'The growth outlook has deteriorated from February, when the budget was first tabled, meaning there will be less revenue in the form of tax collection and therefore a bigger headache on how to balance the books. 'At last week's business/government partnership meeting, held with the president, it was clear that we must speed up reform to drive economic growth. It is time for parliament and government to show that we are capable of rallying around a coherent budget that maintains fiscal consolidation.' ALSO READ: S&P Global keeps SA's credit rating on positive outlook S&P Global's rating reinforces what's at stake Mavuso says ratings agency S&P Global's recent decision to reaffirm its positive outlook for South Africa's credit rating reinforces what is at stake. 'S&P sees a potential upside that would lead it to increase our credit rating if an improving track record of effective reforms resulted in the strengthening of economic growth and reduced government debt and contingent liabilities. 'On the other hand, it notes the downside risk if ongoing economic and governance reforms do not progress, resulting in a deterioration in economic growth or a higher-than-expected fiscal deficit and interest burden.' She points out that investors will be watching closely how politicians react to the budget speech. 'National Treasury has stayed the course to ensure the budget does not worsen our debt position and I expect the budget tabled this week will maintain that. 'But in the absence of increased VAT, which has been abandoned from the first budget, we must see restraint on spending. I particularly want to see an honest reckoning with how productive distinct parts of government are, particularly outside of the main service delivery lines. 'We had a succession of administrations over the past 30 years and each one set up new public institutions and programmes. They do not all deliver value for money. As we must do in the private sector, when a budget is constrained, we must reduce spending in those areas that create the least value.' ALSO READ: Budget 3.0: Will it be third time lucky for Godongwana? Budget 3.0 will affect different stakeholders Mavuso says the problem facing our politicians is that it is very difficult to assess value for money in an objective way, given that there are different interest groups who will be affected. 'That is why our constitution protects the independence of several bodies, including the Financial and Fiscal Commission, Reserve Bank and National Treasury. 'The framers of our constitutional order recognised that the financial system is technical and requires institutions that are somewhat protected from short-term political expediency. For the budget, there is a technical question that must be answered: what expenditure cuts will have the least damage on growth or service delivery? 'We must identify those purely on the evidence and follow through to reduce expenditure. This is a task best done by technocrats and our National Treasury is the institution with the right capabilities to do it.' She says that she hopes Godongwana will be able to announce credible steps to reduce expenditure and that we quickly see the political support to do so because that is what will give comfort to investors that we are a country that can politically manage its finances appropriately. 'If we do that, we will maintain our trajectory of improving the confidence of lenders. Eventually, we will see a return to an investment-grade credit rating, which will reduce the cost of borrowing not only for the government, but the whole economy. And with lower costs of borrowing, we will get more investment and more economic growth.' ALSO READ: Economic activity slows in April as economy struggles Critical that budget increases SA's economic growth Mavuso notes that it is critical that South Africa increases its economic growth. 'This came across loud and clear at the business/government partnership meeting that we held with the president and several government ministers last week. 'It was abundantly clear to everyone how serious our growth outlook is. We have now agreed to accelerate reforms by introducing several 'sprint' approaches to getting things done. We also increased the frequency of future engagements for the partnership from quarterly to every six weeks. 'This shows the impressive level of determination and engagement from the president and his team. We recognised that several issues, ranging from the global trade situation to local politics, can distract the reform effort, but we must double down and remain focused. 'No matter what happens in the international arena, our structural reforms are critical to enabling our economy. Certain reform areas, such as logistics, are lagging the initial timelines, but the meeting was clear that this must be fixed. I appreciated the urgency of fixing our country and ensuring the right policies are in place.' Turning to last week's unemployment figures, Mavuso says it keeps increasing. 'Whether it is government trying to balance the books, or workers trying to secure a job, our economy is not delivering. We must fix it and I saw last week just how engaged and serious both government and business are about doing so. 'It gave me a new sense of optimism that South Africans are grasping the challenges and ready to implement the solutions. A finalised budget that hits the right balance of fiscal prudence will be a key enabler. Our politicians have the chance to make sure that is what we get over the next few weeks.'
The Citizen
08-05-2025
- Entertainment
- The Citizen
Langa Mavuso on holding the fort for R&B and being awarded for it
Mavuso was nominated for the Metro FM awards and the Urban Music Awards (UMAs) for Best R&B but only won the latter. Singer songwriter Langa Mavuso spoke to The Citizen about holding the flag high for the R&B genre. Picture: langamav/Instagram Being nominated at two different awards ceremonies for the same category is enough proof of an artist's relevance and place in the industry, especially in a genre considered dying in the country. 'It's always a good feeling when you are recognised and celebrated for your efforts. Music has been a great love of mine, and to be given the honour to say that I'm doing it well feels good,' R&B singer Langa Mavuso told The Citizen. Mavuso was nominated for the Metro FM awards and the Urban Music Awards (UMAs) but only won the latter. The UMAs, which celebrated South Africa's finest musical talents, were hosted at the Heartfelt Arena in Pretoria on Sunday evening. Some of the night's winners included Uncle Waffles, named the Best DJ, Dlala Thukzin, awarded the Best producer, and the spiritual ensemble Soweto Gospel Choir, named the Best Gospel Act. ALSO READ: K.O finally gets his Metro FM award in his home province Holding the fort for R&B Mavuso's name is among the first mentioned when South African R&B is discussed. 'It's been beautiful to watch the resurgence of the genre in South Africa,' said Mavuso. Mavuso's debut album Langa was released in 2020, and since then, he has grown in stature with every note he belts out. Before that, he released what could be described as a modern R&B classic in Sunday Blues in 2017. 'When I first came onto the scene about eight years ago, many questioned whether there was a market for R&B, and we've soldiered through the years,' he says. 'We've seen a beautiful newfound appreciation of this kind of music, and I'm grateful to be a part of it.' ALSO READ: South Africans make their presence felt at the Met Gala in New York Dabbling with Amapiano In the past few days, Mavuso has been teasing a collaboration with Amapiano producer and DJ Yumbs. The collaboration will see the crooner singing over Yumbs' Amapiano beats. 'Yumbs is an incredible producer and also an alum from my high school. So when he called for a collaboration, it peaked my interest a lot,' shares the Lost Love singer. Mavuso says he had fun creating the song Wena. Explaining the meaning of the song, Mavuso said it was about yearning. '[The] song expresses yearning and missing someone you love. We get to experience a live performance of that song released this Thursday on Yumbs' YouTube channel.' NOW READ: Katy Perry missed the Met Gala, but AI stole the spotlight!
