Johannesburg - Poor financial management has reached
epidemic proportions among municipalities, according to a Sunday Times report.
Of the country's 278 municipalities, 66 are in financial
distress, while another 37 municipalities are heading in the same direction,
the Sunday Times reported, according to figures released by the National
Symptoms of poor financial management included cadre
deployment, crucial posts being left vacant, political interference and poor
Some municipalities struggled to pay employees and
contractors, risking service delivery. This also created an environment
conducive to corruption.
A significant number of municipalities underspent on capital
items and grants, and there was a trend to cut infrastructure maintenance
By the end of the financial year last June, 20
municipalities reported closing cash positions that exceeded one month's
operating expenditure requirements.
Fifty municipalities failed to report closing cash
positions, the paper reported.