Bulletin Archives

A radical reconfiguration of the local government fiscal framework is required, not incremental tinkering

This article explores long-term trends in the South African municipal operating and financial environment which will have significant impacts on the appropriateness of the current local government fiscal framework, and which necessitate a fundamental review of its structure.

How adequate is the Local Government Equitable Share grant in the face of escalating costs of municipal service delivery?

This article explores the adequacy of the Local Government Equitable Share intergovernmental grant received annually by municipalities, in the main to fund the provision of basic services, as external cost pressures which lie outside the control of individual municipalities intensify, and revenue bases are eroded in the wake of the Covid-19 pandemic.

Streamlining the administrative burden in Western Cape Municipalities

The School for Public Leadership at Stellenbosch University in partnership with the Hanns Seidel Foundation conducted a research study on the impact of the Covid-19 pandemic on municipal fiscal sustainability in the Western Cape (WC) province, which was completed in April 2021.

The impact of the Covid-19 pandemic on district municipalities in the Western Cape

The School for Public Leadership at Stellenbosch University in partnership with the Hanns Seidel Foundation conducted a research study on the impact of the Covid-19 pandemic on municipal fiscal sustainability in the Western Cape (WC) province, which was completed in April 2021. The district municipalities (DMs) in the sample included Central Karoo, West Coast and Cape Winelands. This article aims to distil the key findings relating to DMs from that study. A previous Local Government Bulletin article dealt with sampled WC local municipalities.

The impact of the Covid-19 pandemic on local municipalities in the Western Cape

The School for Public Leadership at Stellenbosch University in partnership with the Hanns Seidel Foundation conducted a research study on the impact of the Covid-19 pandemic on municipal fiscal sustainability in the Western Cape (WC) province, which completed in April 2021. The local municipalities (LMs) in the sample included Stellenbosch, Drakenstein (large municipalities), Bergrivier, Hessequa (medium sized municipalities) and Swellendam, Kannaland and Laingsburg (small municipalities). This article aims to distil the key findings from that study.

Towards increased fiscal and operational sustainability in Western Cape Local Municipalities

The School for Public Leadership at Stellenbosch University in partnership with the Hanns Seidel Foundation conducted a research study on the impact of the Covid-19 pandemic on municipal fiscal sustainability in the Western Cape (WC) province, which was completed in April 2021. The local municipalities in the sample included Stellenbosch, Drakenstein (large municipalities), Bergrivier, Hessequa (medium-sized municipalities) and Swellendam, Kannaland and Laingsburg (small municipalities).

Court orders national government to leapfrog into Lekwa Local Municipality

Failed service delivery at municipal level is not a new phenomenon. In recent times, however, communities, non-governmental organisations and private companies alike are growing impatient and resorting to court action to “straighten” failing municipalities. Such is the case of Astral Operations Limited (“Astral”), the largest business and employer in Lekwa Local Municipality (Lekwa) in Mpumalanga.

The role of PPPs in addressing learners’ or graduates’ absorption into the local government labour market

Public-Private Partnerships (PPPs) have been identified by government as an important instrument in addressing service delivery and skills development needs of industry broadly and of government specifically.

Green manufacturing as a tool of addressing youth unemployment and promoting sustainable local economic development

This article identifies the possible role that municipalities can fulfil in the promotion of green manufacturing as a tool to advance local economic development (LED), on the one hand, and youth unemployment on the other. In doing so, this article will explore some of the examples in which local governments have successfully achieved this in practice.

Local government elections: to delay or not to delay?

The Independent Electoral Commission (IEC), finds itself in a conundrum. On the one hand, the terms of municipal councils are fixed to a five year term according to section 159(1) of the Constitution and section 24(1) of the Municipal Structures Act 117 of 1998, while section 159(2) of the Constitution requires that municipal elections must be held within 90 days from the day when the 5-year term ends.

What happens to interventions after the local government elections?

Too many municipalities are not functioning as they should. The Auditor General has repeatedly reported municipalities’ poor financial management (see 2019/2020 Report). When a municipality fails to provide basic services, the provincial government may, and sometimes must invoke section 139 of the Constitution to address municipal failures.

Why coalition agreements should be public

In the previous articles of the coalition series in the Local Government Bulletin, it was argued that the proportional representation (PR) electoral system of local government and the absence of electoral thresholds creates the possibility for hung councils to recur in municipalities, making the formation of coalition governments necessary.

Court stops reckless electricity outsourcing contract

Can a municipality under a section 139(5) intervention avoid or by-pass an Administrator, or adopt decisions, such as entering into contracts, that undermine a Financial Recovery Plan? According to the Western Cape High Court, in Executive Council of the Western Cape Province and Others v Kannaland Local Municipality and Others the answer is no. The Court stopped Kannaland Municipal Council from implementing a Public-Private Partnership (PPP) contract involving the outsourcing of electricity after the Municipality had acted unlawfully and at the detriment of its financial sustainability.

Recovering fruitless and wasteful expenditure: Nelson Mandela Bay v Lindele Antonio Petuna

Year after year, the Auditor General exposes how too many municipalities incur significant amounts of fruitless and wasteful expenditure. The Municipal Finance Management Act of 2003 (MFMA) defines fruitless and wasteful expenditure as ‘expenditure that was made in vain and would have been avoided had reasonable care been exercised’.

SCA tells Eskom to exhaust alternative dispute resolution before cutting electricity

Eskom is struggling to recover monies owed to it by municipalities for the supply of bulk electricity. Municipal debts to Eskom have ballooned to alarming proportions. To address this, Eskom introduced a debt recovery process that would see the supply of electricity to many indebted municipalities cut off, or limited. In Eskom Holdings SOC Ltd v Resilient Properties (Pty) Ltd and Others, the Supreme Court of Appeal ruled that Eskom‘s decision to cut off electricity to Emalahleni (ELM) and Thaba Chweu local municipalities (TCLM) was unconstitutional.

Stepping aside, But then What? How the ANC's Resolution affects councillors

The African National Congress (ANC) is implementing a resolution, which provides that members who face criminal charges for corruption, must ‘step aside’. It means, amongst other things, that these members may no longer represent the ANC on any public body. How does this affect ANC members who represent the party as councillors? And what does it mean for the municipality in which they serve?

The ‘download’ on personal information: The Protection of Personal Information Act and Municipalities

In an age of information warfare, identity theft and the mismanagement and commercialisation of personal information in the digital world, the right to privacy in the Constitution and the Protection of Personal Information Act 4 of 2013 (POPIA) are vital tools that must be used to mitigate the risks that ordinary citizens face when sharing personal information. This article reflects on the question of whether municipalities, which are often the primary interface between citizens and government, are ready to implement and fulfil the requirements of POPIA and more specifically, it examines the obligations which municipalities now bear to lawfully process personal information.

Why appeals against tender awards by the municipal manager are unlawful

Separating politics from administration is the cornerstone of the fight against corruption and maladministration in municipalities. When councillors meddle in the administration, and/or administrators interfere with politics, bad governance and, ultimately, service delivery failure is almost always the result.

Amending Municipal Governance Laws: New Rules, New Directions? A focus on the Municipal Systems Amendment Bill

On 29 October 2019, Parliament revived deliberations on the Municipal Systems Amendment Bill (Bill). The Bill had been undergoing stakeholder engagement before it lapsed under the previous Parliament. Its revival therefore meant that deliberations on the Bill would start again. After it was revived, the Bill was allocated to the National Assembly’s Portfolio Committee on Cooperative Governance and Traditional Affairs (COGTA) (Portfolio Committee) which was tasked with facilitating stakeholder engagement. As of 30 October 2020, deliberations on the Bill in the Committee had almost been concluded in readiness for its submission to the National Assembly for Second Reading.

An analysis of the competency levels for ward committee members

Ward committees are governance structures consisting of elected representatives from communities, serving as links between ward councillors, municipalities and residents and relaying concerns of the communities to the elected councillors. The councillors then relay the concerns to the relevant municipal departments and facilitate the implementation of a solution. Ward committee members and ward councillors are expected to act in the best interest of the communities they represent.

Check out our new Local Government Bulletin website

The Dullah Omar Institute is excited to announce the launch of a new website for the Local Government Bulletin. The Bulletin is produced by the Institute’s Multilevel Government Project and contains short, accessible articles on local government in South Africa and Africa.

Coalition governments: Guidelines for coalition agreements

At the time of writing the first article on coalitions (published in the Bulletin in September 2020), the local government (LG) elections were a year away. In only five or six months, 533 political parties and around 855 independent candidates will contest the LG elections across all municipalities in South Africa. The number of registered political parties and independent candidates have increased since the 2016 LG elections. The increasing number of political parties and independent candidates along with the absence of thresholds increases the likelihood that hung councils may recur in some municipalities. Threshold requirements aim to limit the number of parties that obtain seats in the council by reserving seats for parties who reach a minimum share of the votes in the local elections.

Developing cost-sharing models for provision of improved water in local communities

Water in South Africa is a basic human right. The Free Basic Water Policy states that every South African household is entitled to receive 6000 litres of free water per month. Many South Africans, however, still do not have access to piped water within 200 metres of their homes, particularly in rural areas. It is against this backdrop that this article explores existing water cost-sharing models in rural areas and proposes an alternative cost-sharing model for the South African rural context.

Gender sensitive planning and urban design for cities to respond to GBVF

The National Strategic Plan (NSP) to address Gender-based violence and femicide (GBVF) aims to create an enabling environment in which women can feel safe. Absent from the NSP is the role of city planning towards this goal. This article will illustrate how gender-sensitive planning and urban design (GSP&UD) together with the implementation of the development principle of ‘spatial justice’, in the Spatial Planning and Land Use Management Act 16 of 2013 (SPLUMA), may serve as a mechanism for the improved safety of women.

The financial impact of COVID-19 on district and local municipalities: A national perspective

On 29 March 2021, the Dullah Omar Institute convened a webinar on the financial impact of Covid-19 on district and local municipalities. The webinar was attended by close to 80 participants, drawn from government, civil society, the private sector and academia. The theme was unpacked with Prof Tania Ajam, professor in Public Policy, Economics and Finance at the Stellenbosch School of Public Leadership and Dr Mkhululi Ncube, Programme Manager of the Local Government Unit at the Financial and Fiscal Commission (FFC). The discussion was moderated by Prof Jaap de Visser, Director of the Dullah Omar Institute. What follows is an overview of Dr Ncube’s presentation to the webinar.

The financial impact of COVID-19 on district and local municipalities: A Western Cape perspective

On 29 March 2021, the Dullah Omar Institute convened a webinar on the financial impact of Covid-19 on district and local municipalities. The webinar was attended by close 80 participants, drawn from government, civil society, the private sector and academia. The theme was unpacked with Prof Tania Ajam, professor in Public Policy, Economics and Finance at the Stellenbosch School of Public Leadership and Dr Mkhululi Ncube, Programme Manager of the Local Government Unit at the Financial and Fiscal Commission. The discussion was moderated by Prof Jaap de Visser, Director of the Dullah Omar Institute. What follows is an overview of Prof Ajam’s presentation to the webinar.

Webinar report: Coalitions in Local Government

On 12 March 2021, the Dullah Omar Institute (DOI) convened a webinar on “Coalitions in Local Government”. Close to 100 participants attended, and the panel comprised Jaap de Visser (DOI), Wayne Sussman (election analyst), Jennica Beukes (doctoral researcher, DOI) and James Selfe (Member of Parliament for the Democratic Alliance (DA)). Michelle Maziwisa (post-doctoral researcher, DOI) was the moderator.