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that undermined the economic sustainability ofthe study area (D1adla, PeTS. Comm., Tuesday,
24-12-2007).
Table 6.29 shows the level ofefficiency in terms offinancial management in the Ulundi Local
Municipality. Generally, most respondents (58%) indicated that the study area faces poor
financial management. Approximately (17%) felt that the level of efficiency offinancial
Table 6.29: Financial management efficiency levels ofU1undi Local Municipality in
2007
Financial
management
Frequency
,
!
!
Percentage
Cumulative
percentage
Poor 14.5 58 58
Average 4.2 17 75
Good 2
i
!, 8 83
Very good .8 ! , 3 86
Excellent 3.2 i
I 13 99
N/A .3 i I , 100
Total 25 I 100 I 100
management was satisfactory. Meanwhile about 13% respondents saw excellence in the way
and manner finances were managed in the local municipality. Whilst about 8% accorded
financial management a good rating, about 3% of interviewees concluded that the financial
section ofthe local municipality was doing a very good job.
According to Mayor, L.D. Buthelezi, (Pers. Comm., Tuesday 10-01-2006a), the rates and
consumer debtors had continued to worsen in the Ulundi Municipality. In 2006, the rate of
service debt excluding water was 60%. The failure by the community of Ulundi to meet its
financial obligations to the municipality was having a negative financial effect to the extent
that statutory reserves were being utilised to fund debtors, with the result that little or no
funds were available for infrastructure expansion and or replacement. The lOP of Ulundi
Local Municipality is therefore restricted to projects funded by way of grants.
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