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Financial management and MFMA implementation

735 Financial management and MFMA implementation Introduction Sound Financial management practices are essential to the long-term sustainability of municipalities. They underpin the process of democratic accountability. Weak or opaque Financial management results in the misdirection of resources and increases the risk of corruption. The key objective of the Municipal Finance management Act (2003) (MFMA) is to modernise municipal Financial management in South Africa so as to lay a sound Financial base for the sustainable delivery of services.

White Paper on Local Government. The MFMA, together with the Municipal Structures Act (1998), the Municipal Systems Act (2000), the Municipal Property Rates Act (2004) and the Municipal Fiscal Powers and Functions Act (2007), sets out frameworks and key requirements for municipal operations, planning, budgeting, governance and accountability.

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