Three of nine provincial capitals are under central administration {writer: Staff reporter}

No less than three of South Africa’s provincial capitals are presently functioning under central administration, serving as a stark reminder of the strain under which local government in the country is functioning as the pressures of inadequate financial and skills resources are mounting.

Over the last 12 months, the government was forced to take over the administration of no less than 24 municipalities across the country, as one local government structure after the other buckled under the pressure.

According to the Department of Co-operative Governance and Traditional Affairs, only six municipalities received clean audit reports in 2008. This is a clear indication that it is not only the 24 municipalities under central administration which are in trouble.

Some estimates have it that almost one out of every 10 municipalities is battling to make the grade.

Particularly rural municipalities in Mpumalanga, the North West and the Free State are finding it difficult to cope; while the Western Cape, Limpopo and the Northern Cape seem to be relatively trouble free on the municipal front.

The problems of municipalities in many cases are exacerbated by the fact that they are battling to collect money owed to them. Often, substantial portions of outstanding money are owed by government departments.

In Gauteng, a dispute over bills forwarded to provincial departments delayed the payment of R41 million to municipalities.

The Gauteng Health department allegedly owes municipalities almost R58m for services delivered to public hospitals and clinics.

Municipalities’ problems are compounded by the fact that it is not that simple for them to institute legal action against government departments which owe them money.

According to Kevin Allan from Municipal IQ, the Constitution requires that court action must be the last resort when all avenues have been exhausted.

In many instances, government departments dispute bills forwarded to them, and municipalities have to ensure that their billing systems are in order and bills accurate.

According to the chief executive officer of the South African Local Government Association Xolile George, there is a skills shortage problem, but that is not the main cause of billing errors. It is usually the result of incorrect data due to system problems.

Professor Amanda Gouws of the Department of Political Science at Stellenbosch University recently told Rapport that the 24 municipalities presently under administration do not reflect the complete picture of the situation at municipal level of government.

She referred to the fact that only six municipalities received clean audit reports in 2008, and added that even if a municipality might not have been placed under central administration, it could be close to it – and even some of the provincial administrations might be shaky.

However, Prof. Deon Scott, an expert on municipal finance at the University of South Africa, is of the opinion that some of the accounting criteria for municipalities are unnecessarily critical and high, or even out of order.

“Many municipalities receive qualified audits, but most of the requirements are inconsequential to the financial system, and rural areas are battling,” he told Rapport.

“In the cities, there are at least consultants to be found who are again expensive, however.”

He is of the opinion that disorganised management systems are the real problem. A lack of knowledge, skills and experience is less of a problem and it is rather a lack of the right attitude that is amiss.

According to Prof. Scott, labour legislation also makes it difficult to deal with the problem. It is not easy for management to act against those who do not pull their weight.

Both he and Prof. Gouws agree that politics is playing a negative role.

Prof. Gouws is of the opinion that attention should be given to the problem that municipal managers are often effectively politicians. “We often experience situations where they are causing so much conflict that the municipality is paralysed.”

The image of local authorities, as not always being financially prudent, is often strengthened by revelations of bad judgment.

A prime recent example was when it came to light that the cash-strapped City of Johannesburg had splurged on at least R1m worth of World Cup match tickets for its councillors – defying a national directive not to waste money on merchandise for the soccer spectacular.

The City’s 217 councillors each received a pair of tickets for every one of the 15 games that will be played at the Ellis Park and Soccer City stadiums – from the opening match to the final itself on 11 July.

More than 6 500 World Cup match tickets were purchased by the City, less than a month after the special directive was issued by the National Treasury.

In what could be the worst of timing, the revelation about the tickets – some costing up to R6 300 – came during the same week that the City proposed increasing rates by 28% in the wake of the national petrol price increase of 59c and Eskom’s 24.8% hike in electricity tariffs.