Metro warned it could forfeit second tranche of equitable share

NOVEMBER 12, 2014

National Treasury has warned the Nelson Mandela Bay Metro and other municipalities that unless they comply with the provisions of the Municipal Finance Management Act that they risk forfeiting the second transfer of their 2014/15 equitable share of national revenue.

The warning is contained in a report to be submitted to Council tomorrow morning.

Treasury says municipalities must ensure that the budgets passed by council “perfectly reconciles” with the budget returns submitted to it.

Treasury says that municipalities that had not achieved 100% reconciliation by the end of September were “advised to submit an appendix indicating corrections at a Special Council meeting before November 15”.

This will be submitted to Council tomorrow by City Manager Mpilo Mbambisa.

National Treasury states that “non-adherence to these milestones...will inevitably result in National Treasury having no option but to withhold all equitable share transfers due by the end of November 2014”.

It adds that in terms of the Municipal Finance Management Act it “is mandated to monitor compliance by municipalities with this Act and to take appropriate steps if a municipality commits a breach of the Act, including the stopping of funds”.

In addition to rates and service charges, the metro relies on its equitable share of national revenue and conditional grants for its financial survival. - metrominutes