How municipal-owned entities are failing local govt
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GUEST – Miyelani Holeni - Group Chief Advisor at Ntiyiso Consulting Group
A municipal finances expert has raised the alarm about the continued decline of municipal-owned entities in local government.
Organisations such as Johannesburg’s City Power and Rand Water are meant to not only provide services to residents but are also historically cash injectors in municipal coffers.
However, this has not been the case in recent years.
Ntiyiso consulting’s Miyelani Holeni said evidence was pointing to a worrying trend where internal inefficiencies among other challenges had led to weakened municipality-owned entities.
“If you were to track the income that they used to make and the surpluses that they used to make, there has been a decline in both. That means that they are not contributing as they should be to the municipal coffers and the reason why you would have municipal-owned entities, is you would like to make things a lot more efficient.”
Municipalities have been buckling under pressure with more and more South Africans unable to foot their service bills due to the continued decline of the economy.
A municipal finances expert has raised the alarm about the continued decline of municipal-owned entities in local government.
Organisations such as Johannesburg’s City Power and Rand Water are meant to not only provide services to residents but are also historically cash injectors in municipal coffers.
However, this has not been the case in recent years.
Ntiyiso consulting’s Miyelani Holeni said evidence was pointing to a worrying trend where internal inefficiencies among other challenges had led to weakened municipality-owned entities.
“If you were to track the income that they used to make and the surpluses that they used to make, there has been a decline in both. That means that they are not contributing as they should be to the municipal coffers and the reason why you would have municipal-owned entities, is you would like to make things a lot more efficient.”
Municipalities have been buckling under pressure with more and more South Africans unable to foot their service bills due to the continued decline of the economy.
