The critical state of South African municipalities calls for the situation to be elevated to national crisis status. The utter incompetence of the ANC government to manage municipalities has lead to the collapse of local governments across the country and the decline is so extensive that the basic needs of many South Africans cannot even be met.
By 31 December 2017, the country’s municipalities owed Eskom and various water boards R16.2 billion and R7.3 billion respectively. Even though the medium-term budget, of which the division of fair share and income forms part, has certain measures in place to address the enormous debts of municipalities, it will all be to no avail if decisive action is not taken to enable municipalities to once again function as sustainable economic units.
According to a presentation on the new Division of Income Act (DORA) by the National Treasury for the next medium-term period up to 2021, municipal councils are still approving budgets without having the necessary funds to keep to the budget. Municipalities must be better trained and equipped in order to understand budgeting and financial planning processes. At present, financial decisions are made based on political majority and mandates and not in the best interest of every municipality’s community.
The cadre deployment and mass-appointments, currently taking place in municipalities, must stop.
According to the National Treasury, there are no funds for exorbitant salary increases that are much higher than the inflation rate. Municipalities spend too much money on salaries, which often make up the greatest part of their budget. The staff at municipalities must be streamlined with the appointment of expert and competent people in vital positions.
Staff must be held responsible and be called to account for their quality of work and must be equipped with the necessary training and resources to do their jobs properly.
The ANC government is supposed to ensure that the necessary steps are taken to turn the country’s municipalities around before it is too late, but instead they are distributing the national income under a smoke screen in such a way that the necessary funds that are supposed to be allocated to municipalities for infrastructure development are channelled to cover expenses like free tertiary education – which was an irrational promise made as part of their campaigning strategy for the 2019 elections.
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