Potchefstroom: MEC for Finance Kenetswe Mosenogi led discussions in which the North West Provincial Treasury and North-West University (NWU) forged a partnership to assess municipal Budget and Treasury Office capacity. The partnership is geared towards attaining capable local government.
MEC Kenetswe Mosenogi said the audit outcomes for municipalities across the province indicate that these institutions continue to record poor audit outcomes and this cannot be left unattended. Mosenogi exclaimed that the Provincial Treasury is adamant to assist municipalities to change their audit outcomes, hence the partnership to assist with the assessment that will outroot the cause.
The MEC explained that many rely heavily on consultants to prepare Annual Financial Statements and respond to audit findings. NWU attributes this to systemic capacity constraints within Budget and Treasury Offices (BTO), including high vacancy rates, staff turnover and a shortage of appropriately qualified finance officials.
Prof Joseph Sekhampu, Chief Director at the NWU Business School said the university welcomes the entreaty by the provincial government and indicated that the institution is more than ready to action the request. Prof Sekhampu said the university has proposed a comprehensive provincial assessment of BTO capacity, titled “Beyond Compliance: The BTO Capacity Diagnostic Blueprint – An Evidence-Based Strategy to Transition from Consultant Dependency to Resilient Municipal Capability.”
He said the assessment marks a shift from a compliance-driven approach, which addresses audit findings after they occur, to a capability-driven approach that identifies root causes. NWU will examine whether municipalities have the skills, capacity and organisational arrangements needed to sustain effective financial management over the long term.
The assessment will draw on more than 10 years of existing data, including reports from the Auditor-General, National Treasury’s mSCOA system, Statistics South Africa and the South African Local Government Association (SALGA). This evidence-based approach is intended to minimise disruption to municipalities while ensuring findings are verifiable.
MEC Mosenogi said over 15 months, NWU will deliver a provincial BTO capacity assessment, municipality-specific capacity profiles, an analysis of consultant utilisation and effectiveness, and a long-term roadmap for strengthening municipal financial management. Findings will be shared with Provincial Treasury on a quarterly basis, allowing corrective interventions to begin as they emerge.
“This partnership will help us move beyond compliance for its own sake, towards building lasting financial management capability within our municipalities,” said MEC for Finance Kenetswe Mosenogi.
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Issued by North West Provincial Treasury: For more information contact: Media Liaison Officer Lesedi Makhubela 062 103 2798/ Departmental Communications: Ms. Kesalopa Gill on 018-388 3584/ 3239/2319