The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

According to AfriForum, the National Treasury’s decision to temporarily withhold R13,5 billion in equitable share allocations from 69 municipalities for July serves as proof of the extent of financial mismanagement and non-compliance at local government level. AfriForum, however, warns that the government’s eventual corrective action against municipalities that repeatedly fail to meet their legal obligations will only be effective if accompanied by meaningful reform.

Morné Mostert, Manager for Local Government Affairs at AfriForum, says the Treasury’s actions demonstrate that the municipalities in question have failed to comply with fundamental financial management requirements. “Communities have been living with the consequences of these failures for years – manifesting in, among other things, deteriorating infrastructure, failing water and electricity services, sewage spills and poor refuse removal,” says Mostert.

He, however, emphasises that withholding the equitable share allocations amounts to a double punishment for residents who must first endure the burden of poor municipal service delivery and will now suffer further due to the withholding of those allocations. “While fiscal discipline is essential, communities should not bear the consequences of poor governance by municipal councils and officials,” he explains.

“The withholding of grants merely highlights the ‘symptoms’ of municipal failures, not the underlying disease. The real crisis lies in poor governance, weak oversight and a persistent lack of accountability. Unless these issues are addressed, municipalities will simply continue moving from one financial crisis to the next.”

AfriForum maintains that Treasury will not be able to restore municipalities on its own. The organisation, therefore, calls on the Department of Cooperative Governance and Traditional Affairs (Cogta) to utilise available constitutional intervention mechanisms – in collaboration with provincial governments – where municipalities repeatedly fail to meet their obligations. In cases where municipalities also fail to comply with recovery measures, stricter interventions should be implemented in terms of Section 139 of the Constitution.

Mostert also insists that senior municipal officials who repeatedly fail to fulfil their statutory duties, disregard the requirements of the Municipal Finance Management Act, or contribute to financial collapse should face disciplinary action or, if necessary, civil or criminal penalties.

“The era of consequence-free municipal failure must come to an end. Government has now acknowledged that a serious governance crisis is plaguing municipalities. Decisive action against those responsible must now follow, along with restoring municipalities to institutions capable of delivering basic services to the communities they are meant to serve. Communities deserve functional municipalities – not endless recovery plans that yield no meaningful change,” Mostert concludes.

Issued by: AfriForum