Dlamini-Zuma says municipalities need more money

As many municipalities head towards a complete meltdown, the department of cooperative governance and traditional affairs, under Minister Dr Nkosazana Dlamini-Zuma, is hoping a local government summit will help turn things around.

With little improvement made in addressing transparency, accountability, performance and integrity, the Auditor-General (AG) Report for 2020-21 confirmed 28% of municipalities were in a dire state, with financial collapse imminent.

South Africa has 257 municipalities and in the latest audit outcomes for the year ending June 2021, the AG office found only 41 had registered clean audits, 100 had unqualified audits, 78 had qualified audits, four had adverse findings and there was one outstanding audit.

The first day of a two-day summit took place during a time when municipal finances were reported to be under severe pressure due to corruption, maladministration and fruitless and wasteful expenditure.

Dlamini-Zuma called for the funding model of municipalities to change. According to her, discussions were in progress for government to increase municipal budgets in order to improve service delivery, as most citizens depended on social grants and other low-income strategies for survival.

“Some of the municipalities are not able to raise their own revenue, but still have to provide services to communities,” she said.

“We hope [it] won’t take long to change the funding model so we can better address the aspirations and needs of the local people.”

More than 2 000 delegates attended the summit to address the challenges facing municipalities and brainstorming solutions.

On the matters of local economic development (LED), improving municipal growth on the local economy and support of emerging businesses, Black Business Council in business environment chief executive Gregory Mofokeng said doing away with criminal elements and implementing local business forums would bring about economic development.

Economic development would come from small, medium and micro enterprises and any development which happened, occurred from municipalities.

“There needs to be partnerships between government and businesses and what is critical is we need municipalities that can involve businesses in the implementation of those plans,” he said.

There was a strong move between local businesses, which formed local business forums and this was important, as this would advance the participation of local business.

However, he also noted there was no communication from municipalities which was quite necessary to create a conducive environment.

“When there is no social facilitation and when developments have to happen, we then have criminal elements coming in and hijacking those projects.

“This needs attention and it is important we bring along local business forums to participate meaningfully,” he said.

“Projects are being delayed and sabotaged.” There was no consistent effort from municipalities in driving projects, Mofokeng said.

“We also need competent people in LED offices. “Let it not be an office where comrades are dumped because there is nothing to do. That office is very difficult.

“Our youth is angry because we are not providing economic opportunities and they cannot do business with municipalities because of the procurement policies which exclude our youth.” President Cyril Ramaphosa is expected to address delegates at the summit today.

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– lungas@citizen.co.za