Latest news with #RaviPillay
IOL News
5 days ago
- Business
- IOL News
Ravi Pillay expressed concerns over Msunduzi Municipality's finances
Co-leader of the Premier's Msunduzi Working Group (PMWG), Ravi Pillay, said Msunduzi Municipality's current financial situation is of great concern and will require careful and intensive management. Image: File Five months after being appointed to lead a turnaround team for Msunduzi Municipality, former KwaZulu-Natal Finance MEC Ravi Pillay has described the city's current financial situation as a matter of concern. Pillay was appointed by Premier Thami Ntuli to co-lead the Premier's Msunduzi Working Group (PMWG), which was established under Section 154 of the Constitution in February, to help with a strategy to turn around the municipality's collapsing service delivery and financial control systems. 'The current financial situation is of great concern and will require careful and intensive management,' said Pillay. He said the employment of the new municipality manager (MM), Felani Mndebele, who started his duties on August 1, was encouraging as this would bring stability and facilitate the implementation of the recovery plan in the municipality. 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 The MM position was left vacant after Lulamile Mapholoba was fired last year, leaving a turmoil situation and a visible lack of service delivery. Pillay was appointed along with Dr Nonhlanhla Mkhize to co-lead the PMWG, but Mkhize is no longer involved since she left her government job as the director-general (DG). Pillay said Mkhize has been replaced in the PMWG by provincial acting DG Dr Nkosenye Zulu. The DA wants the municipality to be placed under financial administration as it says the debts were up to R2 billion, failed to spend R15 million in grants, R10 million that was taken from the water department and redirected to the building of community halls, and is losing 60% in water, which amounts to R70 million per annum. DA Councillor Ross Strachan said water was wasted through leaking infrastructure, which was not maintained because of the absence of technical expertise, illegal connections, and non-functional water meters. This was while Ntuli's office was expected to provide the city residents with an update on the PMWG's work, which was due to be completed at the end of the year. Various government departments were estimated to owe the municipality over R200 million in unpaid services. Pillay said there was a facilitation for the payment of R45 million in government debt to the municipality. Businesses and households were previously reported to be owing the municipality billions of rand for rates and other services. Pillay said the municipality's financial situation will be a priority issue in the recovery plan, 'which at the same time must be holistic, covering issues from all work streams'. Pillay said PMWG was working hand-in-glove with municipality workers' labour unions, local and national business chambers, traditional leaders, ratepayers associations, community development structures, and the Office of the Auditor-General of South Africa, Tsakani Maluleke. However, he declined to report on what the PMWG had achieved since it began its work, saying the progress report should come from Ntuli and Mayor Mzimkhulu Thebolla. 'The PMWG is accountable to the elected leadership of the province, led by the premier, and the municipality, led by the mayor. 'Public communication is, in the main, the domain of these two political offices,' he said. He said the final Diagnostic Report and Recovery Plan will be concluded this month, and thereafter, there will be stakeholder engagement. 'These processes will be led by the elected leadership of the municipality. Key to the success of our efforts will be building a genuine consensus and partnership among all stakeholders,' he said. Ntuli is yet to respond to questions sent to his spokesperson, Bongani Gina, on Wednesday. However, Thebolla also distanced himself from talking about the work of PMWG, saying that it was only Ntuli's office that could assess its performance. 'I can assure you that we are working very well with them (PMWG),' said Thebolla. He declined to respond to DA's allegations on the municipality's financial affairs, said he would first have to read the party's press statement, which this reporter forwarded to him. Strachan, who is a member of the city's executive committee, wants the municipality's financial affairs to be handled by the Finance MEC Francois Rodgers, the DA provincial leader. Strachan alleged that the political instability has rendered the municipality dysfunctional. 'The council is plagued by ANC infighting, failed oversight, and non-implementation of decisions. 'Leadership remains weak, with continuous disruptions and executive instability, resulting in a collapse of basic governance,' he said. Thebolla, however, disputed Strachan's infighting and instability allegations, saying 'this is the most stable municipality' within the local government sphere.
IOL News
23-04-2025
- Business
- IOL News
KwaZulu-Natal Premier's Working Group initiates financial sustainability efforts for Msunduzi Municipality
Msunduzi Municipality under Mayor Mzimkhulu Thebolla is under scrutiny by the provincial government. Image: Supplied. Despite Msunduzi Local Municipality's denial that it failed to meet the Auditor-General's deadline for submission of financial statements, the intervention team assigned by KwaZulu-Natal Premier Thamsanqa Ntuli to probe the collapse of governance in the embattled municipality wants clarity. The team, which is known as the Premier's Working Group (PMWG), is under the stewardship of former Finance MEC Ravi Pillay. The alleged breach by the municipality was raised by Umkhonto weSizwe Party (MKP) in a statement issued on Tuesday, where it called for urgent action and consequence management against the nine municipalities for the breach. Msunduzi was among the list released by the MKP. Reacting to the news, Pillay said despite the municipality disputing the MKP's statement, he will, however, meet the municipality and engage further on the matter. 'The PMWG will engage the municipality further and the matter will find expression in the financial sustainability work stream that will be set up soon,' said Pillay The municipality in Pietermaritzburg is currently under the spotlight of the provincial government which last month was forced to intervene and appointed a seven-member team led by the former Finance MEC Ravi Pillay to fix governance issues in the municipality. The municipality's spokesperson, Nontobeko Mkhize, denied that the municipality had outstanding financial statements, saying the delays were caused by an objection which was lodged by the municipality that has since been resolved, resulting in the tabling of the financial audit report in the council. The PMWG, similar to the eThekwini Presidential Group, was appointed in February as part of the new Section 154 intervention measures following a report by Cooperative Governance and Traditional Affairs (Cogta) MEC Reverend Thulasizwe Buthelezi in October last year which said the municipality's governance was deteriorating. The group is expected to present its first report on Friday. The municipality had been under administration for more than five years and to the surprise of the many people, including the opposition parties, it was lifted out of administration in April last year. In a statement the MKP called on both Cogta and the Standing Committee on Public Accounts to take decisive decisions against the nine municipalities which the party said failed to submit their financial statements for auditing. In the statement, the party said it was reacting to the Auditor-General Tsakani Maluleke whom the party said expressed concerns over the nine municipalities' failure to submit the outstanding annual financial statements for the 2023/24 audit cycle. The party said the delay by authorities in attending to this breach has resulted in an increase in poor service delivery in the poorest of communities. [email protected]
