FINANCE DIRECTORATE
SHAREHOLDING MANAGEMENT DEPARTMENT
MUNICIPAL ENTITY
QUARTERLY NEWSLETTER
Analyst
2011/2012 Quarter 4: April 2012 – June 2012, ISSUE NO. 21
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
National Treasury MFMA Circular No 60: Minimum Competency Level
Regulations, Gazette 29967 of 15 June 2007
This circular provides an approach to managing the requirements of the above regulations towards the
remaining eight-month deadline. MFMA sections 83, 107 and 119 outline the competency levels of
financial officials for municipalities, municipal entities and the supply chain management staff of both
municipalities and municipal entities. The Municipal Regulations on Minimum Competency Levels
prescribe the required competency levels for uniform and consistent application of the Act.
MFMA Circular 60 is available at:
http://mfma.treasury.gov.za/Circulars/Documents/Circular%2060%20%20Minimum%20Competency%20Level%20Regulations%20and%20Annexure%20B%20–
%20Information%20for%20consideration%20of%20Special%20Merit%20Cases/Circular%20No%2060%20%20Municipal%20Minimum%20Competency%20Regulations.pdf
National Treasury MFMA Circular No 61: Banking, Overdraft and Investments
Municipalities and municipal entities are required through the normal operations of the MFMA to advise
the municipal council (or the parent municipality in a case of a municipal entity) as well as the National
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Treasury, the Provincial Treasury and the Auditor-General of any changes in banking, overdraft and
investment information.
MFMA Circular 61 is available at:
http://mfma.treasury.gov.za/Circulars/Documents/Circular%2061%20–
%20Banking,%20Overdraft%20and%20Investments%20–%2025%20April%202012/Circular%2061%20%20Banking%20Overdraft%20and%20Investments.pdf
Speech by the Director General of the National Treasury Lungisa Fuzile at the
REUTERS ECONOMIST OF THE YEAR BREAKFAST: 13 April 2012
This speech gives an indication of how National Treasury sees the economic outlook for the rest of
2012.
http://www.treasury.gov.za/comm_media/speeches/2012/2012041301.pdf
GENERAL:
PWC’s World Watch: Issue 1 2012
PWC produces a newsletter on “News and opinion on governance, reporting and assurance issues
affecting business today”.
In this issue there is an article on the role of internal audit as well as an article on “How integrated
is reporting?”, where studies in South Africa and Spain find company reporting to have lots of
disclosure but too little insight.
http://www.pwc.com/en_GX/gx/ifrs-reporting/pdf/world-watch-issue-1-2012-interactive.pdf
Ernst and Young article on “Rapid-growth markets soft power index”
“Everyone is familiar with the concept of hard power. Hard power is the military and economic might a
nation state uses to obtain what it wants from other political bodies.
However, countries can sometimes obtain the outcomes they want without tangible threats or payoffs.
This indirect method has sometimes been called “the second face of power” or soft power.”
The article discusses the how emerging markets use soft power.
The Ernst and Young article can be accessed at:
http://www.ey.com/GL/en/Issues/Driving-growth/Rapid-growth-markets-soft-power-index-Soft-power-defined
National Government: Media Statement on IMF Resources
The National Government has released a statement on its contribution to the IMF:
http://www.treasury.gov.za/comm_media/press/2012/2012061801.pdf
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Maximum cheque values cut
The Payments Association of South Africa (PASA) announced that the maximum value for which a
cheque can be written has been reduced from R5 million to R500 000.
The iol.co.za article can accessed at:
http://www.iol.co.za/business/business-news/maximum-cheque-values-cut-1.1326897
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: City of Cape Town 2012. 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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