How municipal-owned entities are failing local govt

GUEST – Miyelani Holeni - Group Chief Advisor at Ntiyiso Consulting Group<br /> <br /> A municipal finances expert has raised the alarm about the continued decline of municipal-owned entities in local government.<br /> <br /> Organisations such as Johannesburg’s City Power and Rand Water are meant to not only provide services to residents but are also historically cash injectors in municipal coffers.<br /> <br /> However, this has not been the case in recent years.<br /> <br /> Ntiyiso consulting’s Miyelani Holeni said evidence was pointing to a worrying trend where internal inefficiencies among other challenges had led to weakened municipality-owned entities.<br /> <br /> “If you were to track the income that they used to make and the surpluses that they used to make, there has been a decline in both. That means that they are not contributing as they should be to the municipal coffers and the reason why you would have municipal-owned entities, is you would like to make things a lot more efficient.”<br /> <br /> Municipalities have been buckling under pressure with more and more South Africans unable to foot their service bills due to the continued decline of the economy. <a href="http://www.kayafm.co.za/">Kaya FM </a>