FINANCE DIRECTORATE,
SHAREHOLDING MANAGEMENT DEPARTMENT
MUNICIPAL ENTITY
QUARTERLY NEWSLETTER
Analyst
2009/2010 Quarter 2: 1 October 2009 – 31 December 2009, ISSUE NO. 11
As parent municipality to the municipal entities we aim to keep our municipal entity boards
of directors and staff abreast of all current news, legislation and policies directly affecting
the municipal entities. This will enable directors to be continuously informed as well as
ensuring that we meet the legislative requirement as parent municipality to ensure that
both the municipality and the municipal entity comply with the Municipal Systems Act, the
Local Government: Municipal Finance Management Act and any other applicable legislation.
The intent of this newsletter is to convey any new information relating to the Local
Government: Municipal Finance Management Act, Local Government: Systems Act,
Companies Act, Corporate Governance and any information relevant to municipal entities.
THE LOCAL GOVERNMENT LEGISLATION:
THE MUNICIPAL FINANCE MANAGEMENT ACT:
Exemption from the requirements of the new Budget and Reporting
Regulations
In Issue 9 of the Quarterly Newsletter, it was reported that the City had requested an
exemption for its municipal entities to comply with the new Budget and Reporting
Regulations. National Treasury has now confirmed that the City’s municipal entities do not
need to be consolidated with the City’s Budget information, although full compliance with
the MFMA budgetary requirements is still essential.
NEW LEGISLATION:
CONSUMER PROTECTION ACT, 2009
The Consumer Protection Act, 2009, was signed into law on 24 April 2009 and the majority
of the Act will come into effect on 24 October 2010. The Act will have far reaching
implications for suppliers of goods and services.
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GENERAL:
SPEECH BY DEPUTY FINANCE MINISTER NHLANHLA NENE:
Deputy Finance Minister Nene concluded his speech at the opening of the Cape Times KPMG
Business Personality of the Year award ceremony with the following statement:
“The most urgent task in South Africa is to create jobs. This is where business - big and
small, government, labour and civil society need to reach out and develop a partnership
that taps into the immense creativity and energy of this country. We have to do this, so that
millions of people will have hope that they will get a decent job on day, and not just be
dependant on a welfare system. Therein lies the future dignity and dynamism of South
Africa.”
The full speech is available at:
http://www.treasury.gov.za/comm_media/speeches/2009/2009111001.pdf
SPEECH BY EXECUTIVE MAYOR DAN PLATO
At the Council meeting of 28 October 2009, Alderman Plato expanded on the legacy of the
2010 Soccer World Cup:
“Speaker, because of the World Cup, Cape Town is receiving an injection of around R12
billion into its economic base for new upgraded infrastructure. This investment will make
Cape Town a better place to live for decades to come.
The key new infrastructure improvements are upgrades to the airport, the rail system,
several major road interchanges, the Grand Parade, and the Philippi and Athlone Stadiums
and the redevelopment of the Green Point Stadium as an urban park and sport precinct.
Cape Town needs all of this for 2011 and beyond, but its 2010 that has kick-started it into
actually happening.”
THANK YOU:
On behalf of the City, the Shareholding Management Department would like to thank the
board members and staff members of the City’s municipal entities for their contribution and
commitment during 2009. We trust you all had a good festive season and we look forward
to working with you in 2010.
Please contact Louise Muller (021 4003940) or Richard Wootton (021 4002701) if you have any
queries in respect of this newsletter.
Although every effort is made to check the accuracy and quality of the information supplied, The
City cannot be held responsible for any errors that may arise.
Copyright(c) City of Cape Town 2007. All rights reserved. No part of this newsletter may be reproduced or transmitted in any form
without written permission from the City of Cape Town, Finance Directorate, Shareholding Management Department.
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