sustainable governance



sustainable governance
Welcoming Address
“Promoting sustainable and compliant governance”
Presented by: Alderman (Dr) Elna Von Schlicht
(Executive Mayor: Cape Winelands District Municipality)
A Unified Cape Winelands of Excellence!
Sustainable Governance
Sustainable Compliance
A Unified Cape Winelands of Excellence!
 Inadequate funding undoubtedly undermines the notion of
developmental local government.
 Western Cape municipalities experience challenges similar to
other municipalities in the country that are centred around
inadequate funding and limited budgets.
 However, municipalities must learn that through good governance
and excellent performance how to master balancing the needs of
the community and managing its limited financial resources.
 Long-term planning provides strategic direction and support the
objectives of municipalities. This planning includes a 10-year
viability forecast linked to business plans for delivery over the
medium term.
 This aims to realise revenue in order to accomplish budgeting in
a viable, sustainable and credible manner.
A Unified Cape Winelands of Excellence!
 The President of CIGFARO indicated that benchmarking with
other municipalities and ensuring value for money will be one
of his key focuses of his term as president.
 In addition, he indicated that CFOs have an important role to
play in driving and implementing value for money.
 Benchmarking will ensure greater transparency and
accountability to our ratepayers / stakeholders. This we owe to
 Effectiveness, Efficiency and Economy are the key elements
of value for money.
 Lastly, cost–benefit and return on investment are the principles
that underpin the concept of value for money – we must
ensure that our decisions are supported by these principles.
A Unified Cape Winelands of Excellence!
 What the District Municipalities in the Western Cape recently
learned through a District Funding Research Project is that we
must adopt a more pragmatic approach to ensure optimal
utilization of resources.
 Thus, in the absence of any source of own revenue, the only
tool available to districts is the ability to decide how to meet
the prescribed outcomes.
 Knowing what the revenue gap of your municipality is and how
to access more revenue is the core to a feasible revenue
 Key to revenue enhancement is to assess what opportunities
is available to your municipality to enable access to other
revenue sources.
A Unified Cape Winelands of Excellence!
 Good governance is build by promoting and enforcing
 King IV builds on King III and it has been revised to shift the
focus from profit to sustainability. The increased compliance
requirements as well as the new governance structures (e.g.
Social and Ethics Committee) will be the principles to
strengthen good governance in the near future.
 Never compromise your values and principles. Respect and
appreciate local government legislation that support the
principles of our Constitution as this will enable you to “walk
the talk”.
A Unified Cape Winelands of Excellence!
 With the 1 July implementation date of the mSCOA (Municipal
Standard Chart of Accounts) approaching fast, the successes
to date reflect what the CFOs in the Western Cape are made
 In the ever changing environment of implementing yet another
reform –
 Embrace change by bringing new ideas into your municipality
and grow your relational base;
 Regard risks as opportunities so that you not only manage and
mitigate it, but also finds the opportunities in it.
A Unified Cape Winelands of Excellence!
 As was stated by the former Minister of Finance that we as
public servants, serving South Africans from all sorts of
backgrounds with all sorts of needs, are very important
guardians of the future and the well-being of these South
 It is the responsibility of each of us how we spend our budgets
in an accountable manner; how we make our decisions; and
how we ensure the values in our Constitution are promoted.
 I bid you all a sincere welcome to this event, and specifically
to our wonderful and beautiful winelands region.
A Unified Cape Winelands of Excellence!
• Best wishes to all the presenters and
may this event really contribute to
better understanding and roll out of the
very scarce resource namely money!!
• I congratulate all municipalities who achieved clean
audit opinions and wish them well with the new
audit season.
A Unified Cape Winelands of Excellence!
A Unified Cape Winelands of Excellence!

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