SA municipalities: Just 2% of budgets spent on repairs, 8% on maintenance

With local government polls likely to be delayed until early next year, political parties are faced with the challenge of deploying qualified candidates to head municipalities, with no service delivery, billions of rands siphoned through graft and noncompliance with governance in decades of ANC rule the order of the day.

Among the worst-performing municipalities are the Ngaka Modiri Molela district municipality in North West, Msinga municipality in KwaZulu-Natal, Emfuleni in Gauteng, Matjhabeng in the Free State, Modimole in Limpopo, Drakenstein in the Western Cape, Amahlathi in the Eastern Cape, Emalahleni in Mpumalanga and Gamagara in the Northern Cape.

Amid what Auditor-General Tsakani Maluleke has described as “chaos” at municipal level, there have been centres of excellence, which have included Senqu (Eastern Cape), Metsimaholo (Free State), Midvaal (Gauteng), KwaDukuza (KZN), Greater Tzaneen (Limpopo), Steve Tshwete (Mpumalanga), Sol Plaatje (Northern Cape), JB Marks (North West) and Swartland (Western Cape).

According to this week’s parliamentary presentation by the department of cooperative governance and traditional affairs (Cogta) deputy director-general Themba Fosi, the level of dysfunction at municipal level has worsened, with the underlying causes being political meddling, non-adherence to good governance, maladministration, financial mismanagement and lack of service delivery. Fosi has cited “inappropriate political interference”, infighting and factional leadership battles involving mayors and speakers as key contributors to the municipal collapse.

“There is lack of consequence management, with Section 139 not yielding results.

“Poor communication with communities by councillors is another factor.

“Battles are also characterised by motions of no confidence, dual administrations, infighting at times with tender gangsters or aggressive local business forums,” said Fosi.

Fosi singled out non-adherence to governance, including:

• Inadequate monitoring and oversight – leading to failure to identify administrative flaws;
• Poor control environment, noncompliance and lack of consequence management – leading to litigation;
• Dysfunctional oversight committees, poor audit outcomes, inability to pay salaries and failure to adopt budgets and [integrated development planning] on time; and
• Confirmed fraud, corruption, maladministration and limited-service delivery.

Cogta, said Fosi, found critical vacancies such as chief financial officers and engineers not filled.

“There is systematic maladministration, fraud, nepotism and corruption. There is failure to implement the Municipal Systems Act regulations, leading to irregular appointments,” said Fosi.

On financial mismanagement, Cogta found there were: Poor audit outcomes and irregular expenditure; and an average of 2% spent on repairs and 8% on maintenance.

Cogta has found there was no plan for procurement of goods and services, with 163 municipalities facing financial distress, which included 30 municipalities under administration.

On non-service delivery by local municipalities, the parliamentary chair of Cogta Faith Muthambi said: “Cogta is disappointed by the delay to table and process the Intergovernmental, Monitoring, Support and Intervention Bill, which has been highlighted by the department of cooperative governance as a remedy to many challenges experienced.

“The Bill is urgent, especially in light of Cabinet’s decision to intervene in 64 dysfunctional municipalities, with possible dissolution of some.”

– brians@citizen.co.za