Spotlight falls on township economy

XOLA PAKATI
XOLA PAKATI
Normalising relationships between the political and administrative leaders in Buffalo City is key to its success.

That was the word from deputy mayor Xola Pakati at the end of the two-day Growth and Development Summit to plot a path for the city’s prosperity over the next 15 years.

The metro needed to get the basics right, including keeping the streets clean and lowering the costs of doing business – “and then do more” to address the need for economic growth, he added.

Pakati, whose portfolio includes responsibility for the metro’s economic policy, acknowledged the “truth” in comments by deputy finance minister Mcebisi Jonas at a summit dinner on Thursday on the metro’s “generally weak political-administrative interface” which has eroded citizen confidence in BCM. The same message came through just as strongly from other speakers in plenary sessions and delegates in various working groups at the summit.

East London industrial development zone chief executive Simpiwe Kondlo also touched on efficient municipal administration and “leadership cohesion” as investor requirements.

Currently, municipal manager Andile Fani is suspended and executive mayor Alfred Mtsi has also moved to suspend both his stand-in, chief financial officer Vincent Pillay, and acting head of housing Thabo Matiwane.

Jonas pointed to BCM’s poor performance among nine urban centres on a range of indicators including the time and cost of obtaining building permits and enforcing contracts.

Pakati told the Dispatch as the summit wrapped up: “We are committed to clean governance to ensure that taxpayers’ money is used for the benefit of the city. BCM exists to provide services to citizens and not as a self-serving vehicle for those in the municipality. The self-serving culture is one of the causes of instability in the metro.”

He said that while there was “relative stability” since he and Mtsi had moved into city hall, there was not “absolute” stability.

Various speakers at the summit highlighted the existing challenges facing the metro. The business sector has bemoaned the cost of doing business in BCM, including the costs occasioned by delays in getting municipal planning approvals.

Pakati said there had been a lack of economic co-ordination and leadership among business and public entities involved in the economy.

The metro could also play a role, together with provincial government, in holding national departments accountable for their statutory responsibilities and even the commitments ministers have made over the weekend.

He said BCM could realign its internal processes to be consistent with SMME development objectives.

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