FINANCE DIRECTORATE SHAREHOLDING MANAGEMENT DEPARTMENT
MUNICIPAL ENTITY QUARTERLY NEWSLETTER
2014/2015 Quarter 1: July 2014 – September 2014, ISSUE NO. 30
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,
Companies Act, Corporate Governance and any other applicable legislation as well as keeping the
entity informed of any relevant information.
2013/2014 Quarter 4: April 2014 – June 2014, ISSUE NO. 29
LOCAL GOVERNMENT LEGISLATION
MUNICIPAL FINANCE MANAGEMENT ACT
National Treasury Circular 73: System of Delegations
National Treasury issued Circular 73 on 13 May 2014. The purpose of the Circular is stated as:
"The implementation of various public sector reforms, across the three spheres of government, was
identified as part of the strategic priorities of government needing intervention. One of the many ways to
ensure this occurs involves organs of state developing and implementing measures for an effective
public service. The system of delegations was identified for analysis, review and improvements in order to
address challenges faced with service delivery, accountability and assignment of responsibilities."
Municipal entities are reminded that Circulars are not binding unless the parent municipality has adopted
them. The City of Cape Town has not adopted Circular 73.
GENERAL LEGISLATION
Cape Town International Convention Centre Company Act, 2000 (Act 8 of 2000): Designation
of Department
Notice has been given in Provincial Gazette P.N. 252/2014 that the provincial Cabinet has determined
that the Department of Economic Development and Tourism is the designated Department for the
purposes of the Cape Town International Convention Centre Company Act, 2000 (Act 8 of 2000).
TAX ADMINISTRATION ACT, 2011 (ACT NO. 28 OF 2011)
The Acting Commissioner for the South African Revenue Service has published rules in terms of section
255 of the Tax Administration Act, 2011.
The rules prescribe the manner in which electronic
communication with SARS is to be undertaken.
The Rules are available at:
www.sars.gov.za/AllDocs/LegalDoclib/SecLegis/LAPD-LSec-TAdm-PN-2014-06%20%20Notice%20644%20GG%2037940%2025%20August%202014.pdf
GENERAL
RETIREMENT REFORMS: SPEECH BY MINISTER OF FINANCE
The Minister of Finance recently made a speech in Parliament to allay fears about Governments plans to
reform the retirement industry. The speech is available at:
www.treasury.gov.za/comm_media/speeches/2014/2014090401%20Retirement%20Reforms%20Speech.pdf
PwC ARTICLE: Escaping the middle income trap – what’s holding back the Fragile Five?
John Hawksworth, Chief Economist, PwC UK has written an interesting article on what is holding back the
five emerging markets of India, Indonesia, Brazil, Turkey and South Africa in comparison to other large
emerging markets.
The article is available at:
http://pwc.blogs.com/ceoinsights/2014/08/escaping-the-middle-income-trap-whats-holding-back-thefragile-five.html
ERNST AND YOUNG ARTICLE: Placing trust in the future of co-creation
The introduction to an article in Performance, Volume 6, Issue 3, August 2014 reads:
”Consumers are an asset for innovation. Encouraging them to participate in co-creation has the
potential to deliver far better solutions than businesses can achieve on their own. They want to be
involved throughout the whole product life cycle: from inception to launch. And as they are your actual
or prospective customers, their views are important. This article examines the evolving co-creation trend
and provides some examples of companies that are leading the way.”
Read the full article at:
http://performance.ey.com/wp-content/uploads/downloads/2014/08/EY-Performance-Future-of-cocreation.pdf
2014/2015 Quarter 1:
Please contact Louise Muller (021 400 3940) or Richard Wootton
(021 400 2701) 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 2013. All rights r eserved. 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.