Both the Treasury and the private sector are highlighting the sever knock-on effects failing municipalities is having on South Africa.
Decisive action needs to be taken to bring municipalities in South Africa back to fighting weight.
Founder and executive chairman of Sygnia, Magda Wierzycka, said that failing municipalities affect everything in South Africa – from service delivery to the passing of budgets. These interventions, empowered by the Constitution, broadly require a provincial government to impose a recovery plan to secure the municipality’s ability to meet its obligation.
“Over the last 12 months, thirty-one special council induction sessions were conducted for the 43 municipalities identified as being in financial and service delivery crisis. We are not resting on our laurels. Our interventions are beginning to bear fruit,” he said. He said that his department would continue to track the performance of municipalities in order to provide the necessary support to ailing municipalities.“These grants must be used for infrastructure development such as the provision of water and sanitation, roads, and stormwater facilities. The usage of infrastructure grants for unintended purposes impacts negatively service delivery.
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