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The 2022 Municipal Financial Sustainability Index (MFSI) by Ratings Afrika puts Midvaal in Gauteng and Saldanha Bay in the Western Cape as the two best-run municipalities in the country, with Cape Town yet again emerging as the best-run metro.
The survey ranks the 112 largest municipalities and eight metros, out of 257 municipalities in total.
There’s a huge gulf between the best and worst performers, with North West and Free State bringing up the rear.
Most are in dire financial straits and are unsustainable, demonstrating a lack of proper oversight by the Department of Cooperative Governance and Traditional Affairs (Cogta) and the respective provincial administrations.
Top score would be 100 …
The MFSI rates municipalities and metros on a scale of one to 100, based on six financial components: operating performance, liquidity management, debt governance, budget practices, affordability, and infrastructure development.
The worst performer of the lot is Naledi (Vryburg), with a score of just seven.
The best performing municipality in North West is JB Marks (Potchefstroom), with a score of 35.
The average score for the Free State and North West is 21.
“It is very clear that the majority of the municipalities in these provinces are in serious financial trouble and are probably facing collapse,” says senior Ratings Afrika analyst Leon Claassen. “The leaders of these provinces should be held accountable for this dismal performance.”
Top Ranking Municipalities
Read the full article on The Citizen here.