Finding Better Solutions for Municipalities to Function More Effectively

Cooperative Governance and Traditional Affairs (Cogta) Minister Velenkosi Hlabisa has attributed poor performance of many municipalities to their weak revenue collection systems.

Speaking at a national dialogue in Midrand, Johannesburg, Habisa addressed municipal councils and party representatives under the theme: “Every Municipality Must Work – A Call to Collective Action”.

The event forms part of a national review of the 1998 white paper. Its aim is to create a platform for dialogue among political parties on improving the local government systems. However Hlabisa emphasized that the dialogue is for engagement not decision making.

“As we embark on this critical process, we recognize the crucial role political parties play in shaping the future of our local government system,” said Hlabisa.

He acknowledged that all municipalities in the country are governed by political parties, making their inputs essential.

“Local government is where policies become services, promises become infrastructure, and governance become tangible,” he added.

Hlabisa stressed that local government is the first point of contact for citizens and therefore must be well-resourced, both financially and structurally, to deliver effective services.

He conceded public concerns about poor municipal perfomance are valid. While some municipalities function well, they are overshadowed by majority that underperform.

“Year after year audit outcomes show that few municipalities get a clean bill. There is a heavy reliance on consultance when it comes to the compilation of the annual financial statements, yet many municipalities end up with bad result on audit outcome to an extent of disclaimers and adverse outcomes,” said Hlabisa.

Challenges facing municipalities include outdated infrastructure, failure to spend grant allocations, financial mismanagement and corruption. Hlabisa noted that some municipalities are bankrupt and are unable to pay salaries, pension contributions or medical aid.

“Some challenges are historical, structural and systematic, that is why our engagement throughout the process of review, one-size-fits-all will not be a solution. A differentiated approach will have to be adopted when we explore the best way of making our municipalities to be functional and fit for purpose,” he said.

He proposed adopting a more business-like approach to managing municipalities, including bold changes to how councilors are funded and remunerated.

Auditor-General Tsakani Maluleke has supported the review of the 1998 White Paper on Local Government, but emphasized that real change would require bold leadership and commitment implementation.

“Implementing it as I see it, it’s going to take political parties genuinely thinking about who were deployed to take on the roles and responsibilities in the municipal space,” she said.

Maluleke also warned that mismanagement of landfills and water resources was causing serious harm to both communities and governance.

Political parties have until 30 June 2025 to make their submissions on the review.