MORE than 32000 Nkonkobe Municipality residents and clients will from this month use Absa banking to pay their bills with the municipality, Nkonkobe Municipality spokeswoman Siyasanga Hompashe said.
According to Absa Business Banking Africa head Roy Ross, the bank was last month appointed as the primary banker of Nkonkobe Municipality, the second-largest municipality in the Eastern Cape’s Amathole district.
Nkonkobe municipality spokeswoman Siyasanga Hompashe said the municipality changed its banker last month after its contract with FNB came to an end in June this year.
She added that the bank presented a compelling case topped with local economic development (Led) initiatives. “The municipality invited bids from all banks and further invited them to make a presentation where Absa, among other things, presented a user-friendly system designed to address challenges faced by many municipalities such as tracking and blocking deposits made into the bank account to avoid unallocated deposits,” Hompashe said.
“They also presented a system fully interfaced with the accounting system used by the municipality which will ‘smoothen’ the bank reconciliation process.”
Absa’s contract with the municipality is set for the next five years. Absa already banks a number of municipalities in Eastern Cape, including Buffalo City and Nelson Mandela Bay metros.
Ross said Nkonkobe municipality consolidates Absa’s position in the overall public sector market.
“We are pleased to play a role in assisting the municipality to achieve its priorities, reach its economic development goals and provide essential services for its consumers. “In addition, we are looking forward to growing this partnership and to strengthening our presence in the Eastern Cape province through the provision of innovative financial solutions.”
Absa’s business case was based on cash management solutions, online banking platforms, solutions-driven services and optimising business operations and costs, he said.
“Every new business relationship with the public sector is important to us because we are building partnerships with government institutions so that we become more than just a banker to them. We hope to play an important part in helping local government entities to fulfill their challenging mandate of delivering services to communities,” said Ross.
Nkonkobe acting chief financial officer Ntabethemba Nokwe said: “We welcome Absa as our new banking partner and we are excited about some of the innovative solutions that they are bringing on board. For us it is about the benefits to us and the residents of Nkonkobe that we believe Absa will bring.” — email@example.com
Article source: http://www.dispatch.co.za/14768/