September 30, 2003

By Bongani Majola

JOHANNESBURG has recorded a 90 percent improvement in revenue collection from business, Gauteng MEC for Development Planning and Local Government, Trevor Fowler, said on Thursday.

Tabling the consolidated mid-term report of municipalities in the Gauteng province, Fowler said there was an overall improvement in municipal services, treasury and financial management across the province.

"The report reflects significant progress in developing the potential of municipalities as great engines of the economy for our country and the rest of Africa," said Fowler.

However, Fowler said, "we have realised that part of the problems around billing are as a result of poor communication and we therefore call on municipalities to establish proper communication systems and establish a common understanding regarding the billing process with the residents".

With this in mind the City of Johannesburg was to establish the Revenue Shared Services Centre to collect revenue for all the City's various departments.

"Municipalities have undertaken initiatives to improve on their internal financial systems, leading to improved debt collection as well as tighter credit control. Johannesburg's operating deficit, for instance, which had persisted since the apartheid era, had been eliminated and the City achieved a balanced budget for the 2000/2001 and 2002/2003 financial years," said Fowler.

Fowler applauded the City of Johannesburg's attempts at improving their audit systems. "Johannesburg has established a new audit committee with the majority of members being external members. Efforts demonstrated by Johannesburg and the other four municipalities are encouraging."

Procurement policies, Fowler continued, which included implementing preferential municipal procurements and efforts to promote Black Economic Empowerment (BEE) had opened opportunities and broadened participation in economic activities for black people and suppliers who previously did not get opportunities.

"One example is that of the City of Johannesburg, where the BEE strategy was actively implemented by the utilities, agencies and corporatised entities of the City," Fowler said.

The Johannesburg Development Agency spent 54 percent on procuring goods and services from BEEs, with the Johannesburg Fresh Produce Market procuring 55 percent of its supplies from empowerment firms, and City Power 60 percent.

Local government continued to make a difference in improving the lives of people in Gauteng, according to Fowler, and the achievements were the results of the combined efforts of councillors, ward committee members and municipality staff.

-Jonews

South African Cities Network: www.sacities.net