Treasury gives BCMM a clean bill of financial health
Following last month’s application to the provincial Legislature to have Buffalo City Metropolitan Municipality (BCMM) placed under administration for failure to spend their budget timeously, National Treasury has rated BCMM high in budget expenditure.
These are outcomes of a report titled, ‘The State of Local Government Finances and Financial Management’ which confirmed an overall clean bill of financial health for the Metro, rating them high on most major indicators. “On capital spending, Buffalo City was rated first, confirming the fact that the municipality is creating social and economic infrastructure which is necessary to create a conducive life and leverage further development.”
“This means that our city has a sound financial strategy and that there are adequate project preparation and management practices,” enthused spokesperson for the Mayor, Luzuko Buku.
On cash coverage, which measures whether municipalities have cash availability to meet operating expenditure requirements, the municipality came first.
They are also said to have enough cash to pay creditors despite being owed millions in rates.
Reflecting on the report, the Executive Mayor of Buffalo City Metro, Councillor Xola Pakati remarked that, “This is a great encouragement for us to work even harder and diligently in delivering services to our people. This rating did not come overnight but it is a result of the tireless efforts of good women and men in our municipality who are determined to make our City an even better place to live, play and invest in”.
In the State of the City Address, the Mayor indicated that they will improve their expenditure towards ultimate perfection through the introduction of an enterprise resource planning system whose initial stages will focus on supply chain management, contracts and asset management.
The matter of whether they will be placed under administration is still under consideration, with Cogta MEC Xolile Nqata still complying with the 30-day directive to make a final decision.
This expires at the end of September, 2019.
ANC MPL Thando Matiwane had argued that BCMM was found to have a habit of not spending money timeously, but rather waits for the end of a financial year to spend in a rush.
The office of the Mayor does not agree that an administrator would be good for the Metro.