FINANCE DIRECTORATE SHAREHOLDING MANAGEMENT DEPARTMENT
MUNICIPAL ENTITY QUARTERLY NEWSLETTER
2014/2015 Quarter 2: October 2014 – December 2014, ISSUE NO. 31
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 74: Municipal Budget Circular for the 2015/16 MTREF
National Treasury issued Circular 74 on 12 December 2014. This circular provides further guidance to
municipalities and municipal entities for the preparation of their 2015/16 Budgets and Medium Term
Revenue and Expenditure Framework (MTREF). It must be read together with all previous MFMA Budget
Circulars.
The Circular is available at:
http://mfma.treasury.gov.za/Circulars/Documents/2015_16%20MFMA%20Budget%20Circular%20No%2074
%20-%2012%20Dec%202014.pdf.
Municipal Regulations on Standard Chart of Accounts
The attached link contains all the documentation pertaining to the SCOA Project.
http://mfma.treasury.gov.za/RegulationsandGazettes/MunicipalRegulationsOnAStandardChartOfAccou
ntsFinal/Pages/default.aspx
GENERAL LEGISLATION
COMMENCEMENT OF THE LABOUR RELATIONS AMENDMENT ACT, 2014
The President has determined 1 January 2015 as the date on which the Labour Relations Amendment
Act, 2014, (Act No. 6 of 2014) will come into operation.
Similarly, the Minister of Labour has determined 1 January 2015 as the date on which the new Regulations
will come into effect.
See www.labour.gov.za for copies of the Act and Regulations.
PUBLIC ADMINISTRATION MANAGEMENT ACT, 11 of 2014
The Public Administration Management Act has been promulgated and will take effect on a date to be
determined by the President. Different dates may be determined in respect of different provisions and
categories of institutions.
The Act inter alia provides for the transfer and secondment of employees in the public administration.
Public Administration is defined as to include National, Provincial and Local Government, but excludes
municipal entities. The Act also regulates the conducting of business with the State.
GENERAL
PwC ARTICLE: What motivates your CEO over the long term: Shareholder or social value?
Malcolm Preston asks: How can chief executives who want to create a socially valuable legacy do so
while balancing today’s seemingly more urgent requirements and meeting the demands of their
investors and shareholders?
The article is available at:
http://www.pwc.com/gx/en/governance-risk-compliance-consultingservices/resilience/publications/what-motivates-your-ceo-over-the-long-term-shareholder-or-socialvalue.jhtml?WT.mc_id=cs_gx-hero-home_Shareholder-social-value
ERNST AND YOUNG ARTICLE: Shareholder activism to continue to drive remuneration policy
Shareholders have become more active in the remuneration affairs of organisations, says EY’s 2014
Remuneration Governance Survey.
Read the article at:
http://www.ey.com/ZA/en/Newsroom/News-releases/News-EY-shareholder-activism-to-continue-todrive-remuneration-policy
THANK YOU:
On behalf of the City, the Shareholding Management Department would like to thank all the staff and
board members of the City’s municipal entity for their contribution and commitment during 2014. We look
forward to working with you in 2015.
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.