FINANCE DIRECTORATE
SHAREHOLDING MANAGEMENT DEPARTMENT
MUNICIPAL ENTITY
QUARTERLY NEWSLETTER
Analyst
2010/2011 Quarter 2: 1 October 2010 – 31 December 2010, ISSUE NO. 15
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.
Contents
The newsletter’s intend to convey 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:
Supply Chain Management Regulations: Accepting Rewards and Gifts
(Regulation 47)
At the conclusion of each year it has become accepted practice for suppliers and service providers to
give gifts. In terms of the Supply Chain Regulations a provider of a service to a municipal entity may
not offer or grant any reward, gift, favour or hospitality to any official of a municipality entity unless
the gift is less than R350. If there is a contravention of Regulation 47, the accounting officer must
report it to National Treasury, who in turn must place the supplier on its national Black Listing Register.
In terms of Regulation 46 no official involved in the implementation of the Supply Chain Policy may
accept any reward, gift, favour, hospitality or any other benefit above a value of R 350. If a reward,
gift, etc is offered or granted then this must be declared to the accounting officer.
Municipal Budget Circular for 2011/2012 MTREF
National Treasury has issued MFMA Circular No 54 that deals with the reporting requirements for
2011/2012.
While the City of Cape Town Municipal Entities have been granted an exemption from reporting strictly
in accordance with the requirements contained in the Circular, there is some relevant information that
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may guide the budgeting process. The Circular also gives an indication of the revised budget timelines
due to the local government elections and the objectives that local government as a collective is
expected to achieve in the 2011/12 financial year.
The Circular may be accessed at:
http://mfma.treasury.gov.za/MFMA/Circulars/MFMA%20Circular%20No%2054%20%20MFMA%20Circular%202011_12%20MTREF_FINAL.pdf
NEW LEGISLATION:
Discussion Paper on Carbon Tax
National Treasury has issued a discussion paper on Carbon Tax with the aim of reducing green house
gas emissions. Comments on the carbon tax discussion paper should be submitted to Sharlin Hemraj
on email: sharlin.hemraj@treasury.gov.za by 28 February 2011
The discussion paper is available at:
http://www.treasury.gov.za/public%20comments/Discussion%20Paper%20Carbon%20Taxes%208121
0.pdf
Consumer Protection Act, 2008
The Minister of Trade and Industry has published draft regulation for comment at:
http://www.dti.gov.za/ccrd/cpa_regulations.htm
For a summary of the draft Regulations by Webber Wentzel Attorneys go to:
http://www.webberwentzel.com//wwb/action/media/downloadFile?media_fileid=6292
For a comprehensive review of the different aspects of the Act, the following web site
is helpful:
http://www.madeasy.co.za/
RICA Extension
The requirement for the registration of all active SIM cards has been extended to 30 June 2011.
Safety at Sports and Recreational Events Act, 2 of 2010
The Safety at Sports and Recreational Events Act came into effect on 2 August 2010. The owners and
organizers of events in excess of 2000 people are required to ensure compliance with the Act.
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Employment Law
The following link to a Cliffe Dekker Hofmeyr Attorneys Newsletter raises some important issues on
Director’s fiduciary duties as well as aspect of the new Companies Act.
http://www.cliffedekkerhofmeyr.com/news/files/CDH-Employment-Matters-Spring-2010.pdf
THANK YOU:
On behalf of the City, the Shareholding Management Department would like to thank all the staff and board
members of all the City’s municipal entities for their contribution and commitment during 2010. We look
forward to working with you in 2011.
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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