Business Day

No quick fix for municipali­ties, says Mkhize

- Claudi Mailovich Political Writer mailovichc@businessli­ve.co.za

Co-operative governance and traditiona­l affairs minister Zweli Mkhize does not believe SA’s ailing municipali­ties can be fixed overnight, but says progress has been made in distressed municipali­ties over the past year.

In an interview with Business Day, Mkhize said the right political leadership is necessary for municipali­ties to be turned around and that change must “cascade” from a national to a local level.

He was appointed as a minister in President Cyril Ramaphosa’s cabinet in February 2018 with a mandate to improve the performanc­e of local government, which was left in a shambles after former president Jacob Zuma’s resignatio­n.

Most of the municipali­ties’ finances are in distress and municipal debt is rising. Most prominent is the debt owed to Eskom and various water boards. Mkhize said this dire state has led to some municipali­ties using the equitable share they receive to pay for this debt.

“I want to say that we will turn this around, but I think we must be realistic because in some instances the systems are damaged,” Mkhize said, listing the political climate in municipali­ties as one of the challenges, as well as the need to act on fraud and corruption.

“It will ultimately happen, but I don’t think we must take a view that this will just happen overnight,” he said.

It was almost a year ago when he announced that 55 of SA’s 263 municipali­ties were “distressed” or dysfunctio­nal. According to numbers in a document prepared by the department, in January 2019, out of the 55 municipali­ties, 25 showed improvemen­t, while 30 showed none. A total of 29 municipali­ties were also under administra­tion in terms of section 139 of the constituti­on, with seven of them in KwaZulu-Natal, eight in North West and five in Mpumalanga.

Mkhize said 2018 was mostly spent assessing the municipali­ties, after which interventi­ons were planned that dealt with financial recovery, infrastruc­ture and technical support, fighting corruption and dealing with political instabilit­y.

Teams were sent to give technical support to the distressed municipali­ties, which, according to Mkhize, resulted in the number of dysfunctio­nal municipali­ties dropping.

In 2018 disclosure­s in the report, The Great Bank Heist, made headlines. The report highlighte­d, among other things, how municipali­ties unlawfully deposited money into VBS Mutual Bank, and how officials were allegedly bribed to ensure these investment­s were made.

Out of the 12 municipali­ties that still have money deposited at VBS, six had new mayors installed by the end of January this year. One mayoral position is still vacant. One municipal manager has been fired, one resigned, and seven are on precaution­ary leave.

The role of municipali­ties in the VBS saga is not the only case being investigat­ed; by the end of January, 238 fraud and corruption cases were being probed.

 ??  ?? Zweli Mkhize
Zweli Mkhize

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