CoGTA deploys experts to dysfunctional municipalities amid debt, governance challenges

Although the country saw a slight increase in the number of dysfunctional municipalities in 2022, the number of those that are stable also increased to 30, compared to 16 in 2021.

Cooperative Governance and Traditional Affairs (CoGTA) Minister Thembi Nkadimeng made a presentation to the Parliament Portfolio Committee on Municipal Support and interventions on Wednesday morning.

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The presentation highlighted the challenges, ongoing support, work and interventions geared towards turning around municipalities and ensuring an effective and efficient functioning local government.

Challenges in municipalities

According to the department, failures in governance and political oversight were some of the causes of the increase in the number of dysfunctional municipalities.

Infighting in councils was among the causes.

Responding to questions from Members of Parliament (MPs) in the National Assembly in September, Deputy President Paul Mashatile said a framework for coalitions was in the works to address the instability at a local government level.

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“The national government in collaboration with provincial government will continue to strengthen the capabilities of municipalities in managing their own affairs because we don’t want to take over, we want to help carry out their functions,” he said at the time.

Municipalities were also battling with the huge year-on-year percentage increase in average outstanding debt per municipality owed to Eskom, DWS and water boards.

In his briefing in August, Electricity Minister Kgosientsho Ramokgopa said municipal debt stood at more than R63 billion, with the top 20 accounting for 77% of that amount.

There were also vacancies in key senior management positions and revenue challenges.

Interventions

The country is sitting with 66 dysfunctional municipalities, 107 medium risk, 54 low risk and 30 stable.

Of the 66 dysfunctional municipalities, 11 were in the Eastern Cape, 11 in Free State, two in Gauteng, 11 in KwaZulu-Natal, three in Limpopo, six in Mpumalanga, 10 in North West, nine in Northern Cape and two in Western Cape.

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26 of these have Financial Recovery Plans in place.

In a move to hold municipalities accountable, the department has established ward committees, which are functional in all municipalities except in Tshwane, Siyathemba and Kareeberg.

The department has also deployed 94 experts across all nine provinces, including project managers, civil engineers, electrical engineers and town planners.

In addition to the 94 experts, the department has deployed 323 “upcoming” experts across all nine provinces.

“This is intended to build a pipeline of young engineers, technicians and artisans who have experience in the municipal technical functions,” it said.

“These young experts will eventually find placements in some of these municipalities, thus plugging the gap that currently exists in municipalities in respect of the shortage of skilled technicians and artisans.”

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At least 103 technical professionals have been deployed to the different municipalities, with a budget of R200 million towards the eradication of basic services backlogs.

“Municipalities have not yet eradicated basic services backlogs because of a number of factors including lack of technical capacity. This is evident in unspent infrastructure grants and a lack of operations and maintenance of existing infrastructure,” said the department.

Dysfunctional municipalities have also filled senior management positions. 81% of the municipal manager positions were filled, compared to 70% for CFO and 74% for technical managers.

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