1. The amalgamated municipalities were established post the 03 August 2016 local government elections. It is, therefore, premature to ascertain whether there are any positive or negative consequences in this regard as the assessment is still to be conducted at least two years after their establishment.
However, it can be stated that in some municipalities a reduction in costs have been realised in the following areas:
2. No.
The financial position of the amalgamated municipalities has not shown any sign of improvement as yet. However, it is anticipated that there will be an improvement once all systems, polices and strategies have been fully rationalised and implemented after the two year transition period.
(a) There have been historic debts in some of the former municipalities that have now been inherited by the newly amalgamated municipalities. In some instances, municipalities that were financially sound prior to the merger had to utilise their financial reserves to settle debts to creditors.
(b) The impact of the merger or disestablishment will be measured in the medium to longer term. It is envisaged that rationalisation processes will provide for economies of scale in the delivery of services, and it is anticipated to improve efficiency and financial performance, as mentioned above.
3. No legal challenges have emerged from the amalgamation of municipalities.