Municipalities to get lifeline

Finance Minister Nhlanhla Nene said yesterday the government was committed to supporting the turnaround of municipalities that are in financial distress.

Speaking at the municipal innovative infrastructure financing conference, Nene said he hoped that government, the private sector and other stakeholders could work together to re-position municipalities as co-drivers of economic development and growth.

“The Minister of Cooperative Governance and Traditional Affairs (Cogta) recently announced that 87 municipalities were deemed dysfunctional. In collaboration with National Treasury, Cogta will support these municipalities to rebuild a foundation for sound financial management,” Nene said.