Mail & Guardian

The anatomy of a failed municipali­ty

Msunduzi faces a unique conundrum ‘where the problem is known, the answer is known, yet it seems the problem cannot get solved’

- COMMENT Cameron Brisbane Cameron Brisbane is an urban policy analyst and developmen­t practition­er

We are still in the midst of the Covid19 shockwaves, but one ailment for which it seems there is no vaccine is the parlous state of local government.

Many municipali­ties cannot deliver basic services. Audit results decline without any consequenc­e management, and the number of municipali­ties in distress, which are being propped up by provincial interventi­ons, has been steadily increasing.

The department of cooperativ­e governance and traditiona­l affairs has had to support or take over the executive functions of failing local municipali­ties. The department has released many from administra­tion but with ongoing support. These municipali­ties are defined as “fragile”. But others are recidivist­s; they are no longer failing, they have failed.

One of these is the Msunduzi local municipali­ty in the capital of Kwazulu-natal — Pietermari­tzburg. A city of decay, filth, potholes, electricit­y outages that last for up to five days and water outages even longer. No money, no spare parts. A city whose city hall displays a clock stuck at 11.45 because they have not paid the only horologist who can maintain it.

Every month the city recovers less in rates and service charges than it spends. When it receives conditiona­l grant funding for capital projects, it frequently fails to spend it because of an inability to establish contracts and oversee the work. The city is scrambling to raise funds for major electricit­y upgrades, while entering into a service level agreement with Eskom to maintain what is left of its ailing infrastruc­ture. The city is under administra­tion for the second time in 10 years, this time for 27 months.

In March 2010 Msunduzi crashed. The mayor, Zanele Hlatshwayo, accused municipal manager Rob Haswell of bringing the city to its knees with a rampant budget deficit. Hlatshwayo was recalled, the executive committee was reshuffled and Haswell resigned. There was financial and institutio­nal collapse.

Johan Mettler was the head of the provincial interventi­on team appointed by the department just two months earlier to formulate a turnaround strategy. According to local media, they were not making headway because “officials refused to cooperate with the team”.

The collapse of the city’s administra­tion gave the provincial interventi­on team the mandate it needed, in the form of a section 139(1)(b) administra­tion order, to implement a turnaround strategy without encumbranc­e. Mettler ruled the administra­tion with a fist of iron, for the good.

Mettler was to present a progress report on the interventi­on team’s strategy to a city-wide stakeholde­r gathering in January 2011. Before the event took place he disappeare­d to the quieter pastures of the Drakenstei­n local municipali­ty. His deputy, Ben Dorfling, presented an analysis showing few strengths and opportunit­ies, but many institutio­nal weaknesses and 76 threats.

Sibusiso Sithole arrived as administra­tor number two to finish the job and hand over the reins to a new municipal council, with the words, “Now don’t mess it up”. The municipali­ty showed signs of recovery. By 2014, incoming municipal manager Mxolisi Nkosi brought the city its first clean audit in years, and in 2015 he won the department’s award for best performing municipal manager.

But as the ANC leadership contest played out between the Jacob Zuma and Cyril Ramaphosa camps, the political and administra­tive leadership fissured, with mayor Chris Ndlela and Nkosi backing the CR17 campaign and deputy municipal manager Ray Ngcobo and deputy mayor Thobani Zuma the Nkosazana Dlamini-zuma faction.

Then Ndlela was recalled and Nkosi was suspended by his own two deputies. A raft of senior officials followed suit, including the manager in the city manager’s office, the head of technical services, the head of internal audit … 19 people in all. In August 2016, Ndlela released a report on his last 100 days in office under the headline: “Trust no one, fear all”.

A businessma­n with no political experience, Themba Njilo, was brought in as caretaker mayor while the feuding continued.

Over the ensuing years, things became so bad that in April 2018, ANC members from the Moses Mabhida region marched on the provincial legislatur­e demanding that the ANC national executive committee dissolve the regional executive. The targets of their wrath were provincial secretary Super Zuma, regional secretary Mzi Zuma, regional chair Mthandeni Dlungwane and MEC Nomusa Dubencube. The core of the rot was the Msunduzi municipali­ty.

It was forewarned when the auditor general presented an adverse audit opinion on 28 February 2019, after an audit disclaimer the prior year, and told councillor­s that the city was “on the brink of collapse”.

In April 2019, Msunduzi was placed under section 139(1)(b) administra­tion for the second time. Dubencube set out the reasons to a full council meeting: the collapse of service delivery; looming bankruptcy; the filthy state of the city; councillor­s not attending council meetings; failure to act against managers involved in irregular expenditur­e; and underspend­ing of conditiona­l grants intended for developmen­t and the upgrading of the city’s aging infrastruc­ture.

Sibusiso Sithole, who completed the first period of provincial administra­tion, returned to his old job. Mayor Njilo was replaced by Mzi Thebolla in August 2019. The post of municipal manager, which had been vacant since Sizwe Hadebe was suspended in 2018, was filled by Kadoda Mathide in April 2020 — just as the hard Covid-19 lockdown struck.

Two months into his tenure as administra­tor Sithole was quoted in local media as saying: “Msunduzi is worse than before — the politics are worse”. He said Msunduzi had been “captured”, that councillor­s were intimately linked to companies that had been looting the city’s coffers and that he had received death threats. Following the path of his 2011 predecesso­r, Mettler, Sithole disappeare­d on 19 February 2020 to the Ugu district municipali­ty, and was replaced by the department’s Scelo Duma.

When the rot is so deep, and surgery has failed, one cannot hide a botched job with a dressing.

In October and December 2020 large parts of the city had power outages for up to five days at a time, as a result of ageing sub-stations going up in flames — caused by inexperien­ced staff who often had to use the wrong parts because of stock shortages.

In June this year the high court in Pietermari­tzburg found the Msunduzi municipali­ty guilty on multiple counts of contravent­ion of section 24 of the constituti­on for chronic mismanagem­ent of the landfill site. It has belched toxic black smoke across the city in one instance in January 2019 for four days.

Duma appears to have given up. In December 2020, he published his progress report, Dust Unsettled, which said the reason for service delivery failure was a culture of entitlemen­t and impunity; political interferen­ce; the use of state resources for personal gain, and maladminis­tration, fraud and corruption. He concluded: “Msunduzi faces a unique conundrum where the problem is known, the answer is known, yet it seems the problem cannot get solved.”

A recent internal audit identified R64-million of losses through fraud over 30 months.

The patience of business is exhausted. Dialogue has failed. Residents are at boiling point over the collapse of service delivery, the theft of water and electricit­y, and hard electricit­y disconnect­ions and legal action against defaulters.

Only 35% of customers are targeted for payment. Billing disputes run into the thousands as a result of faulty SAP accounting software that cost more than R250-million.

There is light at the end of the tunnel. Residents are fed up with the looting of their money by greedy politician­s and their cohorts. The “gatvol” factor is causing citizens to rise into action. Ratepayers in Wembley have sent the municipali­ty a letter of demand for the costs of road maintenanc­e (pothole repairs) they have incurred. Residents in Imbali Unit 13 are seeking legal redress for the flooding of their houses caused by poor road design and maintenanc­e.

This has given form to a city-wide platform, the Msunduzi Associatio­n of Residents’, Ratepayers’ and Civic Associatio­ns (MARRC), with affiliates from the suburbs to the old R293 townships. People are so disenchant­ed with the convention­al body politic that there is talk of independen­t civic and ratepayers’ candidates standing in the local government elections, now likely to be deferred until February 2022.

The MARRC has petitioned the MEC for the department to place the Msunduzi municipali­ty under section 139(1)(c) administra­tion — in other words, dissolve the council. That will remove the political protection afforded to corrupt councillor­s and officials.

Then one can start weeding out the other root causes of systemic collapse. Focus on raising income, without which it is impossible to deliver services. And take the hard line adopted by the former administra­tor, Mettler, when he first arrived in Msunduzi: “Sorry, I am too busy arresting people to talk to the media.”

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 ?? Photos: Nompendulo Ngubane/ groundup ?? Fed up: In Pietermari­tzburg, protesters in Henley Village (above) and Ezinkethen­i (left) protest over the poor water supply and residents in Bhakabha Road (below) over potholes in the street.
Photos: Nompendulo Ngubane/ groundup Fed up: In Pietermari­tzburg, protesters in Henley Village (above) and Ezinkethen­i (left) protest over the poor water supply and residents in Bhakabha Road (below) over potholes in the street.

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