http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.35Change: 0.01
R/$ = 11.17Change: 0.00
Au 1222.86 $/ozChange: 1.43
Pt 1332.00 $/ozChange: 1.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Oct 08, 2012

Unqualified municipal officials face axe from Jan, Gordhan avers

Back
Resources|Systems|Institute Of Municipal Finance Officers|Mining|Municipal Accounting Officers|Municipal Finance Practitioners|Service|Services|Systems|Chris Nagooroo|Pravin Gordhan
Resources|Systems||Mining|Service|Services|Systems|
resources|systems-company|institute-of-municipal-finance-officers-facility|mining|municipal-accounting-officers|municipal-finance-practitioners|service|services|systems|chris-nagooroo|pravin-gordhan
© Reuse this



Finance Minister Pravin Gordhan warned municipal officials on Monday that government had no intention of extending the January 1, 2013, regulatory deadline for enforcing minimum competency levels for municipal accounting officers, saying that “officials may find themselves without a job, should they fail to comply”.

In a hard-hitting address to some 1 400 delegates attending the Institute of Municipal Finance Officers (IMFO) conference, in Ekurhuleni, Gordhan warned that the deadline, as outlined in regulations promulgated in 2007, were “not negotiable”.

Accounting officers, chief financial officers and senior managers would have to “meet those requirements, or walk out with your bag”. “Generally, municipalities wait until the eve of a deadline to react. This tardiness will not be tolerated,” he said, describing the lack of appropriate skills and experience as the root cause of poor decision-making and service delivery failures.

In his earlier address, outgoing IMFO president Chris Nagooroo said that, while progress had been made on meeting the minimum competence requirements, there were still a significant number of practitioners who still did not meet the criteria.

“The implications of this will certainly have to be considered by municipalities and by the National Treasury,” Nagooroo argued.

He added that it had become increasingly urgent to make it compulsory for municipal finance practitioners to become members of a professional institute that could monitor, develop and discipline the professional status of members. The IMFO was in the process of seeking formal recognition from the South African Qualifications Authority to be recognised as a professional institute.

But Gordhan expressed deep frustration with the fact that, instead of addressing the qualification shortfalls, some municipalities had exacerbated the problem by hiring additional unqualified or under-qualified individuals.

“When you have a nail in your foot, you must remove the nail, because you can’t walk properly. But what we do is put more nails in the foot. In other words, we know that hiring people without the right experience and skills is going to debilitate us, but we go ahead and hire more of those people, and debilitate ourselves further.”

There was no shortage of facilities to train people, but rather a “shortage of will to do the right thing”. “There is also a lack of understanding that experience doesn’t come because you receive a certificate. You have got to work hard both for the certificate and for the experience and you have to spend years getting the experience – you are not going to get it overnight,” the Finance Minister stressed.

Poor planning, poor leadership, poor implementation and a failure to hire the right people also lay at the heart of the rise in unauthorised, irregular, fruitless and wasteful expenditure; the failure to collect revenues; and the under-expenditure on capital budgets

During the 2011/12 financial period, fruitless expenditure increased from R4-billion to R15.5-billion, municipalities collectively failed to collect R77-billion owned for services and underspent their capital budgets by around R10-billion. “Surely, this in unacceptable. Surely, this means that all of you need to take a pretty hard look in the mirror,” Gordhan said.

Municipal politicians were also not spared, with Gordhan blaming them for interfering with tenders and failing to crack down on corruption and misdirected expenditure. Councillors could not plead ignorance, as they were governed by a code of conduct outlined in the Municipal Systems Act on which they had all received training in the past year.

Councillor and financial officers had a crucial role in ridding the local government sphere of “this cancer of corruption”.

There had also been too little progress in ensuring compliance with the 2003 Municipal Finance Management Act, which was leading to serious violation of supply-chain management regulations.

“When we look inside municipal finances, there are not enough controls. We pay twice, if not three times, the price, for certain things. We are paying for things that are not actually delivered in the right quantity or quality,” Gordhan lamented.

He said financial management was not only about filling in procurement forms, or “meeting in secret corners with the right people to get the right tenders”. “It’s about ensuring value for money, because the money we spend in municipalities, as in any other sphere of government, is not our money.”

Financial managers had to take responsibility for standing up even at the risk of their jobs to turn this situation around.

Gordhan also showed deep irritation with persistent arguments that more could be delivered if financial resources were increased. “Sometimes . . . it is because we over promise and under deliver and underspend and overspend all at the same time, in the wrong categories.”

He acknowledged that fast-growing cities faced complex and challenging managerial tasks to keep pace with the rising expectations of their expanding populations.

The recent mining strikes had highlighted that municipalities had fallen short in ensuring that workers lived decently. We must be energetic and creative to build the economic potential of municipalities, which should be key sites of investment and job creation.

Government, Gordhan said, was doing everything possible to restore stability and formulate initiatives supportive of a “new form of normality”.
 

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Economy News
President Jacob Zuma has appointed development economist Thomas Swabihi Moyane as a South African Revenue Services (Sars) commissioner, effective September 27. The Presidency said in a statement that Moyane would bring more than 30 years’ experience to the position,...
Sacci CEO Neren Rau
The South African Chamber of Commerce and Industry (Sacci) on Friday expressed concern about the marked increase in crimes against business, evident in the 2013/14 crime statistics released by the South African Police Service (SAPS). Sacci CEO Neren Rau said the 13%...
Contrary to some earlier projections, the world's population will soar through the end of the 21st century thanks largely to sub-Saharan Africa's higher-than-expected birth rates, United Nations and other population experts said on Thursday. There is an 80%...
More
 
 
Latest News
The Standard Bank Group has been named one of the world’s greenest banks by Bloomberg Markets, ranked eighteenth out of 20 global finance institutions recognised for their investments in green-energy projects and efforts to reduce their own waste and carbon...
The Department of Environmental Affairs (DEA) was considering establishing an air quality index, to make information on the quality of ambient air in South Africa more accessible, DEA national air quality officer Dr Thulie Mdluli said on Tuesday. She noted that the...
Patricia de Lille, PJ Rabie and Dominic Chennells
In a boost for renewable energy, the City of Cape Town has signed its first small-scale embedded electricity generation contract with Black River Park Investments, an office park in Observatory.  The 74 000 m2 office park uses large-scale solar power systems to...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
MANUFACTURING CAPABILITY Reliable Transformers designs and manufactures dry-type and oil-filled power and distribution transformers up to 3.5 MVA
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
GHAREEB SAAD Kaspersky Lab products contain strong heuristics engines that monitor suspicious file execution to detect attacks
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
MICHAEL FLETCHER Real-time information available to government when citizens use publicly funded Wi-Fi networks will enable it to communicate with citizens and provide services
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks