Chairperson,
The ACDP has taken note of the report of the Committee on local government and traditional affairs.
Local government is instrumental in providing communities with essential services such as clean water, proper sanitation, reliable electricity, effective waste management, and well maintained roads and municipal infrastructure. Good governance is key to ensuring these services are provided effectively, yet many municipalities are dysfunctional, facing water and electricity crises.
It is against this background that the ACDP commends the department for finally achieving an unqualified audit opinion after nearly a decade of qualified audits and, at times, consecutive disclaimers. SALGA has received a twelfth consecutive clean audit. If SALGA can do it, it should be possible for all the member municipalities to follow suit.
Many municipalities are however financial bankrupt and unable to pay for much-needed services, such as electricity and water. According to the medium Term Budget Policy Statement, municipalities now owe creditors R116.5bn. In the last financial year, municipalities themselves were owed R339.8bn in debt, with households accounting for 73%of this deb and businesses making up the other 20%. Thus while much is said about poor performing municipalities, a contributing factor is that consumers are not paying for services rendered.
What is required is a long-term sustainability strategy for municipalities to raise payment rates and improve credit management.
Once these funds have been collected, municipalities must ensure that they are properly spent. In many cases this has not been the case, with the Auditor-General in her most recent report tabled in August 2024 finding that only 34 municipalities or 13% obtained clean audits, and with no meaningful improvement over the past two years.” While 45 municipalities have improved the audit outcomes since 2022/2, 36 had regressed. This is alarming.
There can be no doubt further that the local government funding model, which includes the equitable share, requires review. In addition, alternative municipal revenue streams need to be explored.
Lastly, the reported recognition of traditional leaders during the period under review is welcome. However, it is disturbing to note that there is no recognition of Khoi and San traditional leaders and communities in the next two years due to the legislative process that must first unfold.
In the meantime, Amakhosi are receiving government benefits, which are denied to the Khoi and San. The Report states that there seems to be no sense of urgency to correct this inequity. The ACDP agrees.
I thank you.
The ACDP welcomes the recommendations contained in this report.
