Volume 6, Issue 1, February 2004

The Municipal Finance Management Act gives provincial treasuries an important role in supervising municipalities. Whereas the provincial Departments of Local Government were responsible in the past for most aspects of local government, including monitoring municipalities financial well-being, provincial treasuries will now perform important functions with regard to monitoring of, and intervening in municipalities.

Following a national conference on ward committees in June 2003, the Department of Provincial and Local Government published its long awaited Draft Guidelinies for the Establishment and Operation of Municipal Ward Committees for comment. The Guidelines aim to streamline the process of establishing ward committees and their internal operations and are a product of comments and suggestions received at the conference.

In terms of section 82 of the Municipal Structures Act, not only a municipal council can appoint a municipal manager. Furthermore, section 30 (5) of the Structures Act states that, before a municipal council can decide on the appointment of a municipal manager or of the head of a municipal department, the executive mayor or the executive committee must submit a report and recommendation concerning the appointment and conditions of employment.

Municipalities and municipal entities will have to read carefully when acquiring goods or services or when disposing of goods when the Municipal Finance Management Act comes into operation.