Chair and hon members, no municipality can function effectively on state grants alone, without the additional revenue generated by payment for services. Government departments at both the national and provincial levels must be exemplary and pay for municipal services on time. They should not contribute to some municipalities' becoming nonviable or having difficulty in functioning. Their failure to pay for services does not promote the spirit of co-operative governance required by the Constitution. This is a point I emphasised in my meeting with mayors of all municipalities held in September 2009, at the start of my term as President of the Republic of South Africa.
The matter of nonpayment for municipal services by national and provincial departments has not been tabled for discussion by Cabinet and has not been raised as an issue at the PCC, which is attended by the premiers of the provinces and the leadership of the SA Local Government Association, Salga. As a result there is currently no comprehensive quantification of the extent of the problem on a national scale.
However, in the light of the concerns raised about nonpayment for services by national and provincial government departments, I have instructed the Department of Co-operative Governance and Traditional Affairs to investigate this matter further. I have also put the matter on the agenda of the next Presidential Co-ordinating Committee meeting, which will be held next month.
We are confident that all national and provincial departments fully understand and appreciate their civic duty to pay for services and that they are indeed paying for all municipal services rendered to them.