Hon House Chairperson and hon Minister, we all know that the unauthorised and irregular expenditures by fraud and corruption. The only way of dealing with deeply embedded corruption in municipalities is to have concerted investigations and prosecution rife which will show people that no one can steal and mess the public funds without the consequences.
What engagements is the Minister intending to do, particularly with the Hawks and the National Prosecuting Authority, NPA, in terms of supporting municipalities because they are answerable to the department?
What are the engagements between the two entities to show that the people are held accountable? Thank you very much.
The MINISTER OF CO-OPERATIVE GOVERNANCE AND TRADITIONAL
AFFAIRS: I think the Hawks and relevant authorities do investigate and it is up to them after finding whatever they find to prosecute. The Minister cannot say go and prosecute this one or that one, because they are the ones who do the investigation, they are the ones who know
whether there is a case to answer or not, they are the ones who issue arrests and then the courts then deal with the matter.
So, as far as we are concerned, the Hawks must do their work and all the authorities must do their work. We will not stand in their way, but we have no authority to instruct them what to do.
Question 313:
The MINISTER OF CO-OPERATIVE GOVERNANCE AND TRADITIONAL
AFFAIRS: Chairperson, on this question, I can say that it is desirable that the equitable share be revised, because we have found that the formula for equitable share is useful in so far as it represents a transparent and predictable budgeting and distribution framework in which all spheres of government can participate.
However, the formula, as it stands, does not take into account the real needs and developmental challenges confronting the various municipalities. The formula also makes an assumption that all municipalities can have equal capacity to generate revenue. However, we all know
that in certain municipalities, particularly those in small towns, rural areas, in townships, there is a challenge in terms of collecting revenue.
To address this, the Minister of Finance has proposed that a special budget forum lekgotla be held to discuss the design of the local government fiscal framework. To prepare for that lekgotla, the department will work with National Treasury, Salga, Statistics SA, and the Financial and Fiscal Commission, FFC, to improve the local government fiscal framework, including the local government equitable share formula.
So, we are awaiting that lekgotla and hopefully, at that lekgotla, it would be agreed to revise the equitable share. Thank you.