20 August 2007

PRUDENT financial management and good governance are the main ingredients of ensuring that all fourteen municipalities in Gauteng achieve clean audit reports from the Audit General's (AG) by 2009, says Local Government MEC Qedani Dorothy Mahlangu.

Mahlangu was speaking at the launch of the Municipal Public Accounts Committees (MPACs), which are equivalent to the Standing Committee on Public Accounts (Scopa) at local government level, in Boksburg on Wednesday, 15 August 2007.

The launch attended by among others, executive mayors, municipal mangers, speakers and chief whips of various councils, Mahlangu said the MPAC's members would examine the financial statements of municipalities and their entities.

As the first of its kind in the country and province, the MPAC's will hold municipal authorities accountable for financial management and expenditure matters on behalf of the council to which they will directly report. They will also keep an eye on municipal spending.

MPACs will also review public accounts and exercise thorough political oversight and scrutinize financial statements of all executive organs of municipalities.

These committees will comprise of different political parties within municipalities with a blend of experienced councillors who served in the previous term and those who are new but with knowledge on local government issues.

Mahlangu said it was important for the new committees to work closely with AG's office to ensure greater accountability and learning from each other. She promised that her department together with other entities involved will ensure that members of MPAC's are given full support in executing their duties.

"These are very important committees which will ensure greater accountability and play an active political oversight role as far as municipal finances are concerned. It is also pleasing that we are launching this MPAC's shortly after hosting the Summit on Municipal Finances that also looked at devicing new mechanisms of utilizing municipal finances and resources better.

"Municipal Public Accounts Committees will deal with issues raised by the AG. They should not undermine political directives, government practices on corruption and good governance. These committees should not be used as a witch hunt. They should ensure that proper procurement and supply chain management are followed. We should not use them as witch hunts but as a watchdog for councils and municipalities so that councils can spend public funds correctly," said Mahlangu.

Mahlangu said the intervention made by the Department of Provinces and Local Government (DPLG) in partnership with the South African Institute of Chartered Accountants in municipalities was aimed at improving municipal finances in a bid to ensure that municipalities achieve clean audit reports by 2009.

SA Local Government Association (Salga) Gauteng Deputy Chairperson and Westonaria Mayor, Maserame Khumalo said MPACs would assist municipalities in their oversight role in ensuring prudent financial management and that budgets are aligned to Integrated Development Plans.

The Deputy Director-General in the DPLG, Shan Balton said that the launch of the MPACs was a step in the direction towards achieving clean audit reports. He also said that members of the MPACs would be given thorough training to ensure that they execute their duties with no hassles going forward.

"MPACs will surely improve accountability by the executive to non-executive and would ensure that A-Gs reports are thoroughly scrutinized interrogated and act on the recommendations thereof.

"We have already started with training in other municipalities which is aimed at fully capacitating MPAC members to execute their duties with diligent and authority," he said.

Balton added that the establishment of MPACs have been given the thumbs-up by the Auditor-General and the Provincial Scopa and the Association of Public Accounts in ensuring there's oversight and accountability in municipalities.

Source: gpg.gov.za