GKM named best municipality

2018-06-01 06:00

GREATER Kokstad Municipality (GKM) was named the best performing municipality in the province, according to Ratings Afrika.

The report evaluates the operating performance, liability management, budget practices and liquidity position of each municipality and then scores them out of 100.

The Greater Kokstad Municipality scored 76 out of 100 as the best performing municipality.

What was also mentioned in the survey is that a large portion of South African’s biggest municipalities are in serious financial trouble, to the extent that they would need a R22.4 billion Government bailout to become financially stable again.

“The problem started mainly with inadequate budget planning and lack of financial discipline that cause these municipalities expenses to exceed their income resulting in operating losses,” Ratings Afrika said.

These losses, coupled with low revenue collection ratios cause their current liabilities to exceed their current assets.

“Given that the financial sustainability of the key local municipalities in South Africa is weak, our expectation is that the quality of service delivery is likely to deteriorate over the short to medium term. The municipality sector is in a bad financial state. Correction will require decisive political leadership that looks after the interests of residents rather than its own” said Ratings Afrika.

Meanwhile, Greater Kokstad Municipality Mayor Bheki Mtolo was over the moon when delivered the news that the municipality was rated as the best.

Mtolo praised both councillors and municipal managers for their good work that has placed them as the top municipality in the province.

“As Greater Kokstad Municipality, in terms of financial sustainability we are much better [off] than the Metropolitan Municipalities and we were shocked to hear this news [of their financial trouble]. It means we are working hard to improve our institution. “Our secret is that we ensure that we comply with budget practices, focus on long-term planning and make sure that we don’t treat public funds as our money,” said the mayor.

Mtolo asked the communities of Kokstad to trust them and promised to run a clean Government institution.

“We are not focussing on service delivery and now we plan on improving infrastructure and reconstructing many roads in the town and townships.”

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