Central SA
Reduction in equitable share hurting FS municipalities─── OLEBOGENG MOTSE 17:37 Wed, 03 Jul 2019
The reduction in the equitable share allocation for municipalities, as well as low revenue collection, are said to be the main factors contributing to the current financial state of Free State municipalities.
This is according to Free State Director General, Kopung Ralikontsane, who says this is making it difficult for municipalities to render basic services. Ralikontsane provided an example of how irregular expenditure occurs in some of the poorest municipalities in the province.
“Quite a number of municipalities, especially those that have used money meant for infrastructure and used it to pay salaries, when they have to execute the projects then they are unable to complete a number of those projects,” reveals Ralikontsane. He says these municipalities then have to repay national treasury for those conditional grants. “If you can’t repay the money to National Treasury at the end of June, it’s basically accounted for as irregular,” says the DG.
He says they are working on plans to deal with the above-mentioned issues in distressed municipalities. In contrast, opposition parties in the province are of the view that these plans are not tangible. DA Member of the Provincial Legislature (MPL), Roy Jankielsohn, says the province needs investment urgently to expand the economy and reduce unemployment but stresses this cannot be done when a majority of the municipalities are on the brink of collapse.
The DA MPL says municipalities are where basic services take place “unless we fix our municipalities and have the political will and plans to fix our municipalities, there will not be an investment in the Free State and our young people will continue to be unemployed,” he warns. EFF chairperson in the province, Mandisa Makesini, echoed Jankielsohn’s sentiments, adding that the MEC of Cooperative Governance and Traditional Affairs (Cogta), Thembeni Ngcangisa, must provide the legislature with a report on the matter and ensure the management at municipalities are qualified.
Speaking on the “political will”, Jankielsohn spoke at length about the ruling party’s controversial decision to appoint former Mayor of Maluti-A-Phofung, Vusi Tshabalala, as the Chief Whip in the legislature and the Chairperson of the Public Accounts Committee (SCOPA) when he is viewed as the reason why Maluti is seen as “one of the worst performing municipalities in the country”, primarily due to its hefty Eskom debt, amongst other service delivery challenges.
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