SA has eight large metropolitan municipalities, half of which — Cape Town, Tshwane, Johannesburg and Nelson Mandela Bay — were downgraded by Moody’s Investors Service during the past month. The downgrades have also affected Ekurhuleni in Gauteng and the smaller uMhlathuze municipality in KwaZulu-Natal.
Tshwane’s huge costs include significant salary increases. The then DA-led Tshwane Council increased staff costs by 55% — from R6.9bn to more than R10.5bn — between 2016 and 2020. Civic action organisations such as Outa have argued that some of these increases, which were agreed to by DA politicians rather than the city manager — who is the accounting officer — are unlawful. It wasn’t clear then where the extra money for salaries would come from.
Tshwane, Cape Town, Johannesburg and Nelson Mandela Bay have something else in common too — ballooning irregular expenditure. Of the R32bn in irregular expenditure in local government reported by the auditor-general in 2019, Nelson Mandela Bay , Tshwane , Cape Town and Johannesburg accounted for more than 27% of the total.
Moody’s also warns that further downgrades are a risk for metros with high staff turnover or where the local government is unable to formulate or implement cohesive policy. However, “improvements in the capability to effectively formulate and implement policy may generally result in upward movement in ratings”, it says.
'The additional R1.4bn in staff costs enabled some, such as the husband of the DA’s Western Cape chief whip, to earn more than President Cyril Ramaphosa.'
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
SJN Hearings: Paul Adams says Mark Boucher, other Proteas teammates called him a ‘brown sh*t’ICYMI Former Proteas spinner Paul Adams has shared accounts of how he called 'brown shit' by his teammates, including current coach Mark Boucher. By shockerhess / IOLsport shockerhess sport How I do express myself I never believe I could make my first $20,000 with the help of larry__William I never expect this from him after been scammed by other trader I'm thankful larry__William for the support you gave me, may God bless you continually Amen.🙏🏻🙏🏻 shockerhess sport Oh dear here this little shit Paul Adams starts with a racist rant . Was he dropped from the team ? shockerhess sport Tears grips my heart knowing how hard I’ve struggled to find a legit trader. I never wanted to do this but I’ll be guilty if I don’t share this good news to people shantelll_142 is the best trader so far.Thanks for helping me and i will forever be grateful to you shantelll_142
Source: IOL - 🏆 46. / 51 Read more »
Metro K9 cops make heroin bust in BellvilleA routine stop by Cape Town’s metro police’s K9 unit in Bellville for a driver driving with his headlights off, uncovered a drugs bust. I will be forever grateful to you sharon_trad you are indeed a honest person. I won't have be very financial banlace if I didn't take the risk to trade with you. i will be greedy if I don’t share this good news to people contact sharon_trad for a successful trade
Source: IOL - 🏆 46. / 51 Read more »
Source: TheCitizen_News - 🏆 6. / 75 Read more »
Norway marks 10 years since Anders Breivik murdered 77 peopleBreivik detonated a car bomb outside the prime minister's office in Oslo, killing eight, before driving to Utoeya island and shooting 69 people at a Labour Party youth camp
Source: BDliveSA - 🏆 12. / 63 Read more »
Looted couches, cooler bags and wall clocks discovered in Joburg southFood, couches nappies and clothes are some of the looted goods that the Joburg Metro Police confiscated on Friday in some parts of Joburg south. Where is the Blue couch? 🤣🤣🤣🤣🤣🤣 What has been confiscated in many party of KwaZulu Natal and Phoenix up to so far, SAPoliceService, ThekwiniE eThekwiniM?
Source: IOL - 🏆 46. / 51 Read more »
Source: TheCitizen_News - 🏆 6. / 75 Read more »