The Democratic Alliance (DA) in the Northern Cape understands that the National Treasury had to take decisive action to safeguard the public purse and, in so doing, strengthen service delivery.
Northern Cape provincial and local government must now account for continued fiscal chaos at municipal level, culminating in the National Treasury’s decision to withhold equitable share payments to eleven municipalities in the province.
It is not the first time that debt-ridden municipalities, defaulting on payments owed to service providers, face these fiscal consequences for persistent financial mismanagement. Last year, Thembelihle and Renosterberg informed staff that salary payments would be delayed as equitable share payments were not received and now the situation recurs.
It begs the question what, if anything, provincial government is doing to act on early warning systems that are put in place to monitor municipal management on an ongoing basis. Why does the Northern Cape Provincial Treasury have an entire programme dedicated to municipal finances if these fiscal challenges are never resolved, but continuously repeats?
It is ironic that the list of affected municipalities was published on the same day that the Provincial Treasury, Premier’s Office, and Roads Department tabled their budgets. Neither of the oversight bodies presented credible, innovative strategies to secure tangible improvements at municipal level. And the Member of the Executive Council for Roads and Public Works, Fufe Makatong, already admitted that the custodian of public infrastructure will be unable to pay municipal accounts on time and in full.
When bulk consumers of water and electricity, like provincial government departments, casually acknowledge that they have no intention of settling their municipal accounts, it worsens municipal revenue collection rates and makes it difficult for municipalities to meet their obligations.
Residents should not have to bear the brunt of municipal failures and provincial indifference.