Ditsobotla under mandatory Financial Recovery Plan (FRP)


By BAKANG MOKOTO

28 August 2024- The Phase Four implementation of the Re-loaded Thuntsha Lerole Accelerated Service Delivery Programme was launched in Ditsobotla Local Municipality ON 23 August 2024. As part of this intensive programme that is geared towards improving service delivery, North West MEC for Finance, Kenetswe Mosenogi, held a crucial session with officials from the municipality.

The interaction focused on exploring viable solutions to the ongoing challenges faced by the municipality, particularly in light of its current financial crisis. As part of the Provincial Treasury’s intervention, the municipality has been placed under a mandatory Financial Recovery Plan (FRP) by the National Treasury, highlighting the urgent need for immediate and sustainable financial reform.

Mosenogi emphasized the importance of good governance, proper financial management, and robust revenue collection in ensuring that Ditsobotla can effectively serve its residents. She said it is imperative that the municipality adheres to the principles of accountability and transparency in managing public resources.

“Only through consistent and responsible financial practices, we can ensure that the people of Ditsobotla receive the reliable, consistent services they deserve. The Financial Recovery Plan, developed by the National Treasury Municipal Financial Recovery Service, is a binding instrument designed to restore Ditsobotla’s financial stability and enable it to meet its obligations.

“This plan is not merely a guideline but a crucial framework that will determine the municipality’s capacity to deliver essential services. Revenue collection is a key indicator of a functional municipality,” said Mosenogi.

She further said without it, the municipality cannot sustain its operations or deliver services effectively. Mosenogi added that failure to implement this recovery plan, will directly impede their ability to collect revenue, which in turn will compromise the ability to serve the people.

“In the spirit of patriotism and a deep love for Ditsobotla and its people, it is essential that the municipality implements proper internal controls. These controls are not just administrative measures, but vital tools that protect public resources, ensure their efficient use and support effective revenue collection.

“We must do things right, not just because we are required to, but because it is our duty to the people we serve. North West Provincial Executive, in accordance with Section 139 (5) of the Constitution and Section 143 of the Municipal Finance Management Act (MFMA), has resolved to intervene in Ditsobotla Local Municipality,” she said.

Mosenogi said the intervention aims to address the financial crisis and put the municipality back on a path of sustainable governance. She said the Provincial Treasury is committed to supporting Ditsobotla in this endeavour as mandated by Section 154 of the Constitution, which requires national and provincial governments to strengthen municipal capacity.

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