Municipal services being delivered at a huge financial cost to SA, says expert

While the results of the 2020 non-financial census of municipalities were horrific, experts say it did not come as a surprise following a warning from the auditor-general’s (AG) office which stated that more than a quarter of SA’s municipalities are on the brink of financial collapse.

SA had more than 3.6 million indigent households in 2020, a 6.4% increase over 2019, and an increase in the bucket toilet system in the Free State and Eastern Cape, according to statistician-general Risenga Maluleke.

“We all know that many local municipalities are in dire straits, which is impacting in the lack of service delivery, in a shocking state actually,” said former ANC MP and South African ambassador to Ireland Melanie Verwoerd.

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“I don’t think surprise is the right word, but I think we should be horrified that things are actually not improving, but getting worse and the impact it has on basic services to people.”

Delivering the census, Maluleke said the Eastern Cape’s economic hub, Nelson Mandela Bay, led the list of 10 municipalities where bucket toilets were most prevalent at 12.8%, followed by Free State local municipalities Ngwathe and Matjhabeng at 12.3% and 10.1% respectively.

The number of households using the system had been decreasing over the years. In 2016; 68,480 households were provided with bucket toilets.

This dropped to 60,557 in 2017 and 42,622 in 2018, but it increased to 47,130 in 2020 from 42,434 the year before.

The AG’s assessment revealed that municipalities with ongoing concerns included Eastern Cape: Amathole, King Sabata Dalindyebo, Kou Kamma, Makana, Raymond Mhlaba, Amahlati, Enoch Mgijima, Inxuba Yethemba and Dr Beyers Naudé; and Free State: Xhariep, Letsemeng, Mangaung, Tswelopele, Matjhabeng, Dihlabeng , Phumelela , Moqhaka, Ngwathe and Setsoto.

The AG’s office consolidated general report on local government audit outcomes 2020-21 noted the financial position of 28% municipalities meant there was “significant doubt” they would be able to continue operating as going concerns in the near future.

It also revealed that a number of these municipalities cannot continue operating and providing services if their financial health concerns remained poor.

However, political analyst Dr John Molepo said the increase in dependence and decrease in services revealed that people were receiving services, but at a huge financial cost to the country.

“Municipalities are finding themselves in a serious predicament with users not paying, which makes it difficult for them obviously to budget,” he said.

“And apart from mismanagement of funds, proper budgeting within the municipality was also a huge concern, together with rooted corruption within the system that it makes it difficult, as well.”

The FW de Klerk Foundation also released the human rights report card 2022 showing a general failure of governance as a threat and violation of human rights in 2021.

“The rights of South Africans – across the spectrum – and particularly human dignity, equality and socioeconomic rights – were negatively affected by South Africa’s very poor performance in a number of key areas,” the report said.

“The continuing deterioration of infrastructure and service delivery – Eskom, Prasa, municipalities, public healthcare, roads, sewage and water delivery systems.”

It also said the failure of service delivery at all levels of government, particularly with regard to education, health, housing and sanitation services, was a threat to human rights.

“For sanitation, according to the latest Stats SA General Household Survey, 64.9% of South African households had flush toilets in 2020, 18.3% made use of pit latrines with ventilation pipes and 14.1% used pit toilets without ventilation pipes,” the report added.

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