MOSSEL BAY NEWS - Ratings Afrika, one of the most reputed rating agencies, has again rated Mossel Bay the most financially sustainable local government in South Africa.
This follows a similar rating last year.
The Western Cape province is again rated the best-performing provincial government.
Ratings Afrika has published its annual Municipal Financial Sustainability (MFSI TM) for the financial results of the 105 largest local governments plus the eight Metros in South Africa on Saturday, 17 April. The analyses are based on the fiscal year ending in June 2020.
Since Ratings Afrika published its first MFSI (TM) rating in 2011, Mossel Bay has consistently scored very high. On at least four occasions Mossel Bay scored tops. On one occasion, Mossel Bay shared the top spot with the Swartland Municipality.
The MSFI (TM) is a rating model that evaluates six components, namely
- the operating performance;
- liquidity management;
- debt governance;
- budget practices;
- affordability; and
- infrastructure development of a municipality and scores these components out of 100.
Mossel Bay's score of 74 places the town in the top position in the country. Four of the five top-scoring municipalities in South Africa are in the Western Cape. Besides Mossel Bay, Saldanha Bay, Swartland (Malmesbury), and Overstrand (Hermanus) also rank tops.
The highest scoring municipalities have well-entrenched financial policies and their budgets are based on sound long-term financial strategies. They adhere to good budgetary practices, strict financial control, and good revenue collection despite tough economic conditions, the report added.
Ratings Afrika defines financial stability for municipalities as: “The financial ability to deliver services and develop and maintain the infrastructure required by its residents without unplanned increases in rates and taxes or reduction in services.”
Clean audit
Mossel Bay Executive Mayor Alderman Harry Levendal lauded the Ratings Afrika report. "The rating follows Mossel Bay Municipality's recent clean audit result and is a clear indication of the dedication and hard work evident from all of the personnel. I specifically thank the personnel of the Finance department who have had to operate without a permanent Chief Financial Officer for quite a considerable time. I also recognise the valuable role of our directorate and especially of the Municipal Manager, Adv Thys Giliomee. The Municipal Manager's management style, by leading from the front and by not shying away from the day-to-day service delivery challenges, sets a worthy example to our personnel."
"The latest Ratings Afrika rating represents a considerable challenge for all of us at Mossel Bay Municipality to maintain our top spot as the best municipality in the country," Adv Giliomee said. He thanked all the Councillors for their political leadership and guidance.
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