Many municipalities are struggling to adjust to the new “developmental local government” approach to delivery of basic services and to socio-economic growth, says a report by the Centre for Development and Enterprise (CDE).
The report says the approach represents the third wave of change in less than 10 years.
“How municipalities will address the challenges of eliminating backlogs in minimal service delivery and the provision of new levels of services to significantly larger (and more diverse) populations within generally the same inadequate revenue and tax base is not clear at all,” the report says.
The report comes against the backdrop of ever-increasing municipal debt — almost R22,5-billion, with business and government departments responsible for about a third of this — and pending legislation to introduce a new financial regimen, including long-term budgetary planning and controls on spending and accountability.
The philosophy of “developmental local government” is the third major change since 1994, which saw the introduction of a transitional regime. In the run-up to the December 2000 municipal poll, boundaries were redrawn, leading to the reduction in the number of councils from 843 to 284.
But decision-makers had “radically underestimated” the scale of local government transformation, the report says.
It says small towns were particularly affected by loss of expertise, lack of funds and redrafted municipal boundaries, making some councils the size of Hungary, Belgium or the American state of Kansas.
For example, Northern Cape councils on average consist of three to four towns within a 150km radius; huge councils were created in the Free State, where the Kopanong municipality combines nine former administrations.
Until 2000 municipalities had provided a limited number of services and most only had three departments: administration, finance and technical, with most of the budget being spent on wages.
Yet municipalities now are designated as “the agents of delivery”. Under the new local government regimen, councils must submit integrated development plans.
The process has been beset by difficulties, from the rush to meet national government deadlines to the use of inappropriately skilled consultants and lack of consultation with communities. The plans were often little but unrealistic wish lists.
“For the model of developmental local government to be realised in practice, more funds as well as sustained institutional mentoring need to be provided,” the CDE says.