Local government in South Africa is the primary vehicle for the delivery of basic services and socio-economic rights in terms of the Constitution and relevant legislation and policy since 1994. So far, notable progress has been made in delivering basics services such as housing, water, and sanitation to the population. Nevertheless, various studies show that financial management at all three levels of government—local, regional and national—is weak. This is especially true at local government level, leading to institutional inefficiencies that result in high levels of unauthorised and wasteful expenditure, therefore impacting negatively on the ability of municipalities to deliver on their constitutional and legislative mandates.
While South Africa’s National Treasury has taken steps to address this issue, Provincial Treasuries have limited capacity to adequately assist municipalities to better manage public funds. At the same time, there is insufficient community participation in setting or monitoring budgets and performances at local government level. In the circumstances, it is clear that much more needs to be done to improve public financial management in all three spheres of government to create safe, healthy and economically sustainable areas in order to achieve the Government's transformation agenda.
The goal of the program is to provide technical assistance that will contribute to the development of improved financial management through enhanced institutional, organisational, human capacity, and stakeholders' relationships.
DT Global will assist the Contracting Authority in achieving the overall objectives of the programme in an efficient and streamlined manner. Indicative activities will include:
Three Key Result Areas have been prioritized in the broad National Treasury Capacity Development Strategy.