Johannesburg – Southern African Institute of Government Auditors (SAIGA) says that the Minister of Finance, Enoch Godongwana faces the challenge of presenting a clear strategy to revive South Africa’s torpid economy and return public finances to a sustainable path when he presents his first mid-term budget tomorrow.
SAIGA CEO, Russell Morena says the organisation believes that following the recent local elections, the minister needs to focus on the challenges of the local government. In fact, he says the minister will have to focus on the reallocation of funds towards local government in order to address these issues and gaps that have to do with capacity and skills.
Morena says it’s a well known fact by now that about 62% of previous local councilors had lacked basic computer skills to enable the passing of crucial municipal budgets. He also points out one other issue that is plaguing the local government sphere is poor financial management, with many municipalities being flagged by the Auditor-General.
Additionally, Morena says a report released by the South African Local Government Association (SALGA), found only seven municipalities were doing well, while 31% were dysfunctional, 30% were functional and 32% were in distress.
This, Morena says, is a clear indication that there are a number of challenges in local government that need the minister to ensure that there is sufficient funding allocated towards the development of local government. Therefore, as SAIGA we believe that the minister’s first mid-term budget should amongst other issues give priority to local government.
