/ 26 April 2007

Manuel reads riot act to SA councillors

Politicians running local governments across the country have been read the riot act by Finance Minster Trevor Manuel, who says that the argument about capacity constraints 13 years into democracy in South Africa is wearing thin.

South Africa’s councillors have been urged to spend the available resources of local government — R128-billion — in 283 municipalities across the country wisely, but particularly in the interests of upliftment.

Failure to do so adequately is, in fact, undermining the constitutional obligations of elected leadership.

Manuel, speaking at the South African Local Government Association conference in Johannesburg on Wednesday night, urged councillors to put their council houses in order.

Noting that he was concerned that between 2003/04 and 2005/06 the number of qualified audits of municipalities had doubled, he said it is of crucial importance that municipalities did not heed the call that ”the bar be lowered” to meet the standards set by the Municipal Finance Management Act.

The government must lead by example, using training initiatives offered and adhering to the recently gazetted competency framework.

Noting that while political office bearers — such as councillors — are itinerant, officials ”who serve us” are not. It is critical to ensure that committed administrators are appointed.

Vacancy rates of between 30% and 70% in senior management, including chief financial officers (CFOs) and municipal managers, were noted.

It is also problematic that many CFOs are not appropriately qualified.

”The argument that we face profound capacity constraints holds substantially less water 13 years into democracy.

”The fact that some among us get very defensive when we receive adverse audits sends a wrong message to those who elected us into office. It says we do not want to be held accountable. Account, we must. We must also stop the habit of not paying the Auditor General’s audit fees. This is bad practice.”

He pleaded with councillors to adopt different approaches to planning. He said integrated development plans are not generating the outcomes that deal with the apartheid spatial settlement patterns.

”Many people still live … too far from their places of work. They [the plans] are not creating sufficiently inclusive communities.”

Manuel said it is also ”within both your capacity and mandate” to protect the poor from unscrupulous contractors who deliver poor quality houses and services to the people. ”To do this we need strong local government institutions.”

Local government should intervene by developing good local development plans that create economic opportunities.

”Not everyone can find a job in the big cities. So, you must intervene in ways that crowd in private sector investment in your areas so that job opportunities can be created.”

The finance minister noted that of available municipal revenue, R36,2-billion, or 28%, was made up of transfers from nationally raised revenues. ”Transfers to local government will grow at 19% per annum, a rate which is substantially faster than the growth of the total budget.

”An issue you might consider … is whether as elected local political leaders you have used the mandate you received from the electorate and the resources at your disposal to intervene sufficiently in ways that improve the quality of life of the poor,” urged Manuel. — I-Net Bridge