Support to Local Government: Project Consolidate, Initiatives to Improve Revenue Collection in Municipalities & Water Supply

PUBLIC SERVICE AND ADMINISTRATION PORTFOLIO COMMITTEE
6 September 2006
SUPPORT TO LOCAL GOVERNMENT: PROJECT CONSOLIDATE, INITIATIVES TO IMPROVE REVENUE COLLECTION IN MUNICIPALITIES; WATER SUPPLY

Chairperson: Mr M Baloyi (ANC)

Relevant Documents:
Initiatives to improve revenue collection in municipalities by DPLG
Implementation Plan for five year Local Government Strategic Agenda: Part1 & Part2
Department of Water Affairs and Forestry (DWAF) support to Local Government
Local Government: Municipal Performance Regulations - 1 August 2006
Project Consolidate

SUMMARY
The Committee was briefed on two key areas:
- Project Consolidate and its support for strengthening revenue generation within municipalities by the Department for Provincial and Local Government
- Water supply in municipalities by Department of Water Affairs and Forestry.

The two Departments emphasised that municipalities were crucial in service delivery, and provided the means for enabling the government to meet its targets. Therefore, strengthening their capacity is crucial. The Committee discussed and agreed that coordination of government departments at national, provincial and municipality level was imperative.

MINUTES
Initiatives to improve revenue collection in municipalities
Ms Lindiwe Msengana-Ndlela, Director General: Department for Provincial and Local Government (DPLG), outlined the five year strategic plan dealing with Key Performance Areas (KPAs) for Local Government. The revenue enhancement programme should be viewed within the context of the five year strategic plan. Twelve municipalities across nine provinces have been selected to develop a model for improved revenue generation in municipalities. She stressed the need to bridge the social distance between customers and municipalities, paying particular attention to issues that have irritated the public and eroded the confidence in the municipality. This meant improving operating and organisational systems, ensuring enhanced coordination of departments and improving the financial and economic viability of municipalities. The programme of action for each of the twelve municipalities was discussed (see documents).

Discussion
Mr M Baloyi (ANC) asked if the five year strategic plan would eliminate all the current local government problems, and if this was feasible.

Ms Ndlela and her team replied that Government had set its 2014 Targets. But the structure of poverty in South Africa was a challenge. The five year strategic plan and Project Consolidate were tools for Local Government transformation.

Mr I Julies (DA) queried whether the present laws governing Municipalities were enforced, and stated that structures within Municipalities were being abused.  

Mr Elroy Africa (Deputy Director General: Department of Local Government) responded that the Municipal Finance Management Act provided clarity on the code of conduct of councilors as political representatives and Municipal Officials as public servants. The South African Local Government Association is rolling out a comprehensive induction and progressive training programme for councilors.

Mr K Khumalo (ANC) asked the Department to re-cap the issues which were central to the success of Local Government reform.

Mr Africa highlighted them: to harmonise planning regimes; to clarify the two tier system of local government and the powers/functions of all three levels of Government and to ensure community participation in ward committees.

The Chair asked if donor funding would lead to dependency within municipalities and how they can raise loans. He also asked if a service payment was voluntary and sustainable. How were Service Delivery Facilitators different from Community Development Workers?

Mr Africa responded that the current levels and type of donor support should not warrant this concern about dependency. Municipalities were being encouraged to become pro-active in entering the borrowing market, but this had policy implications. Service Delivery Facilitators and Community Development Workers had different, but complementary roles. Mr Dan Manyindo (Special Advisor: Department of Local Government) added that service payments were not necessarily voluntary, but success was linked to public confidence in the quality of services.

Department of Water and Forestry Affairs presentation
Ms Thandeka Mbassa (Deputy Director General, Department of Water and Forestry Affairs) presented on the Department's enhanced capacity through Project Consolidate to achieve targets. She highlighted the need for an integrated approach to service delivery and increased capacity of municipalities (see document).

Discussion
Ms L Maloney (ANC) questioned if the two departments were sharing information systems, given that this was a very crucial area.

Ms Mbassa replied that data analysis was a challenge, and stressed the need for a coordinating unit and more linkages between the departments.

Mr B Mthembu (ANC) asked if the current targets for sanitation and clean water provision would be achieved. He also stressed the need to ensure that clusters were functioning effectively to ensure an integrated approach.

Ms Mbassa responded that it was imperative that these targets are met, but this also entailed increased capacity, creativity and political commitment. She agreed that coordination and communication between departments and with municipalities needed to be strengthened.

Mr M Mzondeki (ANC) questioned if issues of improved drinking water quality were being addressed adequately, and suggested the re-introduction of windmills.

Ms Mbassa replied that although municipalities had this responsibility, some were unable to gather and analyse data, as well as purchase water chemicals such as chlorine. She agreed with the suggestion to reintroduce windmills.

Ms Matsomela (ANC) asked if the water boards were weakening the municipalities. He also asked about the Department’s plans to recruit and retain young professionals.
 
Ms Mbassa replied that the water boards were an essential arm of the Department of Water Affairs and Forestry. Plans were underway to transform them into efficient service delivery agents. The Department was providing bursaries, youth learnership/internship programmes and it planned to set up a Centre of Excellence.

The meeting was adjourned.