SA Local Government Association (Salga) president Bheki Stofile has called on labour to be more innovative in turning around the embattled local government sector, saying it needs to reimagine the way local councils are financed.
Speaking at a conference of the Independent Municipal and Allied Trade Union in Cape Town on Wednesday, Stofile said the role local government will play in shaping the future of SA society was “more critical than ever”.
The sector is dogged by malfeasance and fiscal challenges that have seen billions of rand wasted on fruitless, wasteful, unauthorised expenditure each year, affecting the delivery of basic services such as potable water, electricity, clinics, and refuse collection.
“We find ourselves at a threshold where the need to stare into the face of the reality of what our present local government systems are and have the courage both to question them and refashion them for the best has been very apparent,” Stofile said.
“Increasingly, it has been felt that our approach, attitude, and experience regarding local government would need to change. This means returning to a fresh look at the architecture and design of our local government systems; at the heart of such a revisit lies the imperative of revisiting the financial and fiscal framework guiding local government.”
The number of municipalities receiving clean audits has continued to dwindle while fruitless and wasteful expenditure surged to R7.4bn in 2022/23 from R4.8bn the previous year.
We believe local government is the legs upon which any government stands. It is at this level that the state actually meets its people, the juncture where the action of government, in itself, touches the life of a citizen...
Local government’s worsening state has spurred the government to focus the second phase of Operation Vulindlela on fixing councils. Vulindlela is a joint initiative of the Treasury and President Cyril Ramaphosa’s office created in 2020.
Tabling the consolidated general report on local government audit outcomes for 2022/23 in parliament in August, auditor-general (AG) Tsakani Maluleke said only 34 of the country’s 257 municipalities received a clean audit — down from 38 in 2021/22 — with the DA-run City of Cape Town the only one of the eight metros to achieve the feat.
“We believe local government is the legs upon which any government stands. It is at this level that the state actually meets its people, the juncture where the action of government, in itself, touches the life of a citizen. When these legs are weak, the entire system buckles under the weight of expectations,” Stofile said.
“It is thus so important that these legs be made much stronger in order for them to successfully carry the burden of the state and the expectations our people have placed upon the overall system. This, therefore, calls for a relook at the finance and fiscal systems relating to the function of local government.”
In most cases, Stofile said, it is clear that fiscal architecture often does not correspond to the increased responsibilities placed on municipalities. “Whereas municipalities are often required to deliver basic services, they are not necessarily provided with the financial resources to carry this out fully,” he said.
“Such an imbalance in terms of responsibility and capacity is clearly unsustainable and urgently needs attention in that direction. The call is a simple one: if we are to have an enthusiastic and resilient local government system, then we must evolve beyond these archaic approaches that no longer serve the communities effectively.”
The Salga president said it was time for bold, innovative thinking in the design and financing of local government. “This calls for the rejection of these rigid frameworks that tie the hands of local governments and the adoption of new, dynamic models to ensure municipalities are able to play their rightful roles as the first line of service delivery,” he said.
He called on unions and civil society to play a critical role in holding municipal leadership to account and ensure public resources were used for the benefit of the people.
Stofile said the attorney-general’s reports “give us a picture of municipal finances that leaves one cold. Indeed, the negative audit outcomes do appear to be repetitive, and it would seem very little is being done in bringing change to the management of our municipalities”.
He saw the reports as a “diagnostic tool, indicating precisely the areas which we must focus on if we are to drive meaningful change”.
“The time for grandstanding is over; it is now time to get down to the practical steps of how to better service delivery, attract investment, and ensure that our municipalities serve as engines of development and prosperity for our communities,” Stofile said.
“We will introduce performance appraisals, competition, and empower municipal employees to create a local government system capable of responding to the needs of our people.”
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