The National Treasury says the responsibility of implementing consequence management against officials who fail to comply with the Municipal Finance Management Act (MFMA) lies with municipal councils.
It says disciplinary boards have a fiduciary duty to act in the best interests of their municipal councils.
National Treasury further says the boards must ensure that accountability processes are implemented where financial misconduct is identified.
This is after the equitable share of 69 municipalities was withheld by the National Treasury due to financial mismanagement.
Regulatory Oversight Director at National Treasury Khesani Makanete addressed the media in Pretoria.
“What is supposed to happen, for instance, when you talk about unauthorised, irregular, fruitless, and wasteful expenditure that stems from non-compliance with the MFMA, is that those matters are supposed to be referred to a body called a disciplinary board, where they will investigate whether someone acted intentionally or was negligent in breaching the law. Then, based on the recommendations and findings, consequence management is supposed to be implemented by the municipal council, following the recommendations of the disciplinary board by the municipal council based on the recommendation of the disciplinary board,” says Makanete.
VIDEO | National Treasury announces the freezing of funds for 69 municipalities:
VIDEO | The City of Johannesburg is one of the municipality whose equittable share was withheld by National Treasury:
About the Author
