http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.89Change: 0.01
R/$ = 12.70Change: 0.04
Au 1088.45 $/ozChange: -1.41
Pt 989.00 $/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 Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Oct 08, 2012

Unqualified municipal officials face axe from Jan, Gordhan avers

Back
Mining|Resources|Systems|Training|Institute Of Municipal Finance Officers|Municipal Accounting Officers|Municipal Finance Practitioners|Service|Services|Systems|Chris Nagooroo|Pravin Gordhan
Mining|Resources|Systems|Training||Service|Services|Systems|
mining|resources|systems-company|training|institute-of-municipal-finance-officers-facility|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)
 
 
 
 
 
 
 
 
 
Latest News
Mark Cutifani
Updated 5 hours ago In a hard-hitting address, Anglo American CEO Mark Cutifani lamented the decline in the competitiveness of South Africa's mining industry and warned that the “trust deficit” between government, the industry and labour would need to be urgently overcome if the country...
Updated 7 hours ago British multinational banking and financial services firm Barclays has partnered with the Bureau for Economic Research (BER) at Stellenbosch University to sponsor the monthly manufacturing economic indicator, the Purchasing Managers’ Index (PMI). The index, now known...
Updated 7 hours ago Norwegian shipping liner Wallenius Wilhelmsen Logistics (WWL) has reached a settlement agreement with the Competition Commission for contravening the Competition Act, agreeing to pay an administrative penalty of R95.7-million. This settlement followed the...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Updated 40 minutes ago Daimler truck test engineer Dirk Stranz pushes one button, and then retracts his hands from the steering wheel of the Mercedes-Benz Future Truck 2025. “And now the truck is driving itself.”
Updated 40 minutes ago The statutory body responsible for skills development and support in the banking sector, BANKSETA, was investing R68-million in the capacity building project of the University of Venda (UniVen), announced Bankseta company secretary Caroline King at a media event in...
LIONEL MOYAL Cloud services providers must compete against other cloud services providers for business by providing up-to-date systems and services
Updated 40 minutes ago Legacy information technology (IT) systems are becoming increasingly obsolete because of the maturity, efficiencies and cost effectiveness of cloud-based IT services, says information and communication technology major T-Systems subsidiary Intervate head Lionel...
ARMANDÉ KRUGER Balancing the collection and processing of data must be aligned to strategy
Updated 40 minutes ago Many complementary services enable companies to derive broad value from data inside and outside them. The complexity of data management means that companies’ strategies determine the various data systems and functions they will use, says PBT Group regional sales...
Updated 40 minutes ago The South African Civil Aviation Authority (SACAA) has announced that it had awarded the country’s first remotely piloted aircraft systems (RPAS) pilot’s licence. It was issued on Friday, July 10, to SACAA employee and qualified commercial pilot Nicole Swart,...
 
 
 
 
 
 
 
 
 
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
Subscribe Now for $96 Close
Subscribe Now for $96