ETHEKWINI NEWSFLASH

12 February 2016

For Immediate Release

Finance and Procurement Committee

The Finance and Procurement Committee, led by Chairperson, Councillor Fawzia Peer, held the committee’s first monthly meeting yesterday, 11 February 2016, at the Durban City Hall. 

The following issues were deliberated on and provisionally approved, subject to final approval by the Executive Committee.

Review of Rates Clearance Certificate Fee 

The City is set to implement a 6 percent increase on the Rates Clearance Certificate Fee as of 1 July 2016. 

Processing electronic applications for properties below or equal to R185 000 will cost R124 while properties valued above R185 000 will cost R198.

Manual Applications for properties valued below or equal to R185000 will cost R247 while properties valued above R185 000 will cost R371. 

Deputy City Manager for Treasury Krish Kumar said: “We encourage all to utilise the electronic system to cease challenges of the manual process which include manual checking, additional administration and capturing of information.” 

EThekwini Municipality retains positive credit rating status 

The City has again been awarded a positive credit rating, despite the tough economic climate that South Africa is currently facing. The Municipality was awarded AA- for their Long Term Debt which means that it is of a very high credit quality and protection factors are strong. 

For Short Term Debt, the City was awarded A1+ which means that there is a very high certainty of timely payment, liquidity factors are excellent and supported by good fundamental protection factors. 

Deputy City Manager for Treasury Krish Kumar attributed this achievement to solid leadership and commitment from Councillors and employees and said that eThekwini Municipality is one of the top performing Metro’s in the country. 

“We thank employees and councillors as well as line departments for their leadership which has led to the credit rating agency confidence. We are very pleased with the credit ratings awarded,” said Kumar. 

Irregular Expenditure Report 

The Expenditure Unit tabled a report detailing the regularisation of Irregular Expenditure amounting to R113.2 million for consideration by the Committee as all the relevant goods and services were received.

It must be noted that the irregular expenditure does not mean fruitless or wasteful expenditure but rather the supply chain management processes were not completely adhered to as per the Municipal Financial Management Act and its accompanying regulations. 

The Committee discussed the issue of irregular expenditure and raised concerns about the regularisation process, including employees doing business with the City. 

Similo Mbongwe, Deputy Head of Internal Control said: “It is important that all legislation is adhered to. Investigations into employees doing business with the City are on-going and proper disciplinary measures will be taken if they are found guilty,” he said. 

The Municipal Public Accounts Committee also assists in investigating the matter. 

ENDS

Issued by eThekwini Municipality’s Communications Head, Tozi Mthethwa.

For more information members of the media can contact Gugu Sisilana on 031 311 4855 or email: gugu.mbonambi@durban.gov.za​ or Princess Nkabane on 031 311 4855 or email: princess.nkabane@durban.gov.za.



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