ahead
Barry Streek
The government is to press ahead with plans to outsource municipal services and negotiate partnerships with the private sector – despite opposition from public sector trade unions which fear this will result in job losses.
The government is convinced that adequate municipal services cannot be supplied to the majority of South Africans unless agreements are negotiated with the private sector and NGOs to provide these services. It says it will take at least 65 years to provide these services unless municipal service partnerships (MSPs) are signed by municipalities and the public sector, with the private sector as well as community- based organisations (CBOs) and NGOs.
The public sector trade unions and the South African Communist Party have rejected this policy and restructuring, arguing that this will result in significant jobs losses in the municipal and public sectors.
This approach has also led to disputes with municipal unions over the implementation of the Igoli 2002 strategy in Johannesburg.
The government, however, says in a white paper: “It is difficult to quantify the extent of the municipal infrastructure and service backlog.
“However, it is conservatively estimated that the total cumulative backlog is about R47-billion to R53-billion, with an average annual backlog of R10,6-billion.
“According to the analysis of the Medium Term Expenditure Framework prepared for 1998/1999, if these backlogs are addressed through public sector resources alone, many communities will receive adequate supplies only in the year 2065.”
Minister of Provincial and Local Government Sydney Mufamadi says in an introduction to a White Paper that South Africa is facing “daunting challenges for municipal service delivery”.
“If the Reconstruction and Development Programme objectives are to be achieved within a reasonable time frame, municipalities had to look at “innovative ways” of providing services.
“Improving and expanding the delivery of municipal services through MSPs is new ground for South Africa. Developing the partnership concept into a practical and beneficial method for providing quality and affordable services for all required government to review and consolidate its policies on these matters,” Mufamadi says.
The White Paper says municipal councils can “improve, expand and accelerate service delivery through partnership arrangements with public institutions, the private sector or CBOs/NGOs.
‘MSPs are not intended to be a substitute for traditional methods of direct service delivery. Nor should they be viewed as an alternative to ongoing efforts to improve the efficiency and accountability of service delivery by the council.”
Instead, MSPs are intended to provide municipal councils with greater flexibility in addressing service delivery needs.
“There remains some residual uncertainty within the community regarding the necessity or desirability of providing public services through partnership arrangements.”
The government, however, is committed to the use of MSP arrangements by municipalities.
“Partnership arrangements with CBOs and NGOs can promote economic development in communities, strengthen democracy and empower civil society at the local level. Experience in South Africa and other countries has shown that the direct involvement of communities can be positive and beneficial in the creation of accessible and sustainable services, especially in rural areas and low-income communities.
“However, it is also necessary to build the capacities of these institutions so that they can be vital and active participants in service delivery.”
The White Paper also says: “Bidders, community residents and other stakeholders must be informed regularly about the progress of MSP procurement activities. Transparency helps ensure that the municipal council, municipal officials and bidders follow the procedures mandated by law and by the council.”