Latest news with #WhitePaperonLocalGovernment
IOL News
24-06-2025
- Politics
- IOL News
Exploring the call for better salaries for municipal councillors in South Africa
Cooperative Governance and Traditional Affairs (Cogta) Minister Velenkosini Hlabisa says the remuneration of councillors was an issue that needed to be looked at in terms of the review of the White paper on local government. Image: Department of Cooperative Governance and Traditional Affairs / Facebook Cooperative Governance and Traditional Affairs (Cogta) Minister Velenkosini Hlabisa has suggested better pay for municipal councillors so they can focus on the jobs they were elected to do and not seek other income sources. He made the comment during a high-level dialogue held yesterday in Midrand, Johannesburg, with political parties as part of the ongoing review of the 1998 White Paper on Local Government. Hlabisa stated that the review aims to revive municipalities and ensure they are run like businesses. He said there is a need to consider better pay for councillors, senior managers, and municipal managers, especially to attract them to work in rural areas as part of the review. Hlabisa noted that many municipalities are in a dire state.'Local government is where policies become services and promises because infrastructure and governance become tangible. Local government must be capacitated and financially resourced. 'The state of our municipalities leaves much to be desired, and we know that the majority of our public holds the opinion that municipalities are not doing well. Year after year, the audit outcomes show that few municipalities receive a clean bill.' He explained that many municipalities face challenges, and the geographical locations and funding models of the municipalities are at the heart of these issues. 'We need to adopt a style where our municipalities are run like businesses. But to do so, we need to make a bold and new approach to structuring, funding, and remuneration of councillors.'If our councillors are paid peanuts, they will spend most of their time on other jobs and only pay lip service to service delivery. The issue of the remuneration of councillors should be a matter that must be engaged.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ 'The issue of the municipal manager and section 56 employees is critical. If you want to attract competent engineers, accountants, and municipal managers to deep rural municipalities, the remuneration must compensate those people so they will be eager to go and serve our rural municipalities.'When we review the white paper, these are the issues that we must engage with honestly and come up with recommendations,' the minister said. He also mentioned the importance of engaging traditional leaders to ensure their maximum participation in municipalities to advance democracy in the country. Hlabisa further warned that building local government is now a make-or-break moment. The call for better pay for councillors was met with mixed reviews, with a ratepayers group describing such a move as unwarranted. A councillor in a metro, such as the mayor or chairperson of the committee, could earn close to a million rand a year, while ordinary councillors in smaller municipalities could earn around R200 000 a year. Anthony Waldhausen of the Msunduzi Association of Residents, Ratepayers, and Civics in Pietermaritzburg stated that such a proposal would be unjust. 'We disagree completely, as they are being paid well and with other perks currently.'There should be a review of what councillors are being paid; for example, why ward councillors and PR councillors are paid the same. We don't know what roles and responsibilities the PR councillors have, and they should be paid less than the ward councillors.' A councillor in the Impendle Local Municipality in the KZN Midlands stated, 'Our municipality is very small; it does not have many of the things that generate money for municipalities, like water. So a councillor earns about R23 000 per month, and after deductions that include pension, tax, car allowance, and cell allowance, the councillor is left with about R14 000.' The Democratic Liberal Congress (DLC) leader Patrick Pillay in eThekwini Municipality said salaries were adequate.'Councillors are sufficiently remunerated and take our ratepayers for granted. They cannot be contacted nor are they available to attend to critical issues of the communities they represent.' Councillor Abbas Warasally in the Alfred Duma Local Municipality, however, said better pay could minimise corruption.'I personally believe that by doing so, it will cut down on corruption, and councillors will focus on service delivery as well as the needs of their communities. Presently, some councillors take on a second job to make ends meet, thus leaving communities unassisted. The only full-time councillors are those who are office bearers, whereas the rest are part-time contract workers.' Professor Pundy Pillay from the Wits School of Governance said while better pay for councillors may be a positive move, he questioned where the budget for this would come from. 'It might change the behaviour of councillors. The minister might have a point about the increase, but he should clarify where the money is going to come from.' He added that with the current funding model, money is predominantly spent on the national and provincial governments, leaving very little for local governments. Furthermore, he said while in theory municipalities can generate revenue, this was largely true for metros and not for the smaller, poorer municipalities.
IOL News
23-06-2025
- Politics
- IOL News
Municipal meltdown: Hlabisa blames debt crisis on failing revenue collection
Cooperative Governance and Traditional Affairs (Cogta) Minister Velenkosini Hlabisa many municipalities in South Africa are in severe financial distress largely due to ineffective revenue collection systems. Image: Department of Cooperative Governance and Traditional Affairs / Facebook Municipalities are drowning in debt largely because they cannot collect the money they are owed, according to Cooperative Governance and Traditional Affairs Minister Velenkosini Hlabisa. Hlabisa made the remarks Monday at a national dialogue in Midrand, north of Johannesburg, under the theme "Every Municipality Must Work – A Call to Collective Action." More than 300 representatives from political parties and municipal councils gathered to reflect on the relevance of the 1998 White Paper in the context of local government performance. Hlabisa emphasised that the gathering was intended to facilitate open dialogue rather than deliver firm decisions. 'As we embark on this critical process, we recognise the crucial role political parties play in shaping the future of our local government system,' Hlabisa said. 'Local government is where policies become services, promises become infrastructure, and governance becomes tangible.' He said that while some municipalities are performing well, most are underperforming, plagued by financial mismanagement, poor governance, and over-reliance on consultants. 'All 257 municipalities in South Africa are governed by political parties, either through majority or coalition governments,' he said. 'We therefore recognise the central role of political parties and value your input as we seek to improve the White Paper on Local Government.' Many municipalities in the country are facing tough times, with many re-dealing with financial pressure, outdated infrastructure, poor service delivery, and leadership challenges. These problems often come as a result of weak financial management, corruption, a shortage of skilled staff, and too much political interference. Hlabisa said the failure of municipalities to generate sustainable revenue, particularly in under-resourced or geographically disadvantaged areas, has left many unable to meet basic obligations like paying salaries or contributing to pension and medical aid schemes. 'A one-size-fits-all approach will not solve these issues,' he said. 'We need a differentiated strategy and must consider running municipalities like businesses - with appropriate funding, structures, and remuneration for councillors.' Meanwhile, Auditor-General Tsakani Maluleke has voiced support for the ongoing review of the 1998 White Paper on Local Government. 'I just want to put on the table that our reflection as an auditor office is that the 1998 White Paper was fantastic. 'It's good to review it…but that must be followed by a very bold and courageous assessment and recommitment to implementing it. And implementing it as I see it, it's going to take political parties genuinely thinking about who were deployed to take on the rule and responsibilities in the municipal space.' IOL News previously reported that Maluleke's 2023 and 2024 local government audit report, tabled in Parliament last week, echoed Hlabisa's concerns. Only 41 municipalities received clean audits. While 59 municipalities improved since the 2020 and 2021 financial years, 40 regressed. Maluleke said that 99 municipalities received unqualified audit opinions, meaning their financial statements were credible. However, many had significant compliance and performance reporting issues. Of these, 71 failed to submit quality financial statements and relied on auditors to correct errors. In total, 219 municipalities spent R1.47 billion on consultants for financial reporting, yet 130 still submitted flawed financials - which highlighted the ineffective spending.
IOL News
11-06-2025
- Politics
- IOL News
Why local government fiscal health must be climate-proofed
As South Africa reviews the 1998 White Paper on Local Government, we must confront a climate reality that our municipal systems were never designed to withstand. We are facing an increasing frequency and complexity of disasters, driven by climate change, urbanisation, and entrenched socio-economic vulnerabilities. These disasters are no longer isolated shocks; they are the new baseline. And they are cutting municipal budgets—often with irreversible consequences. Over the past two decades, South African municipalities have absorbed the cost of increasingly frequent and severe climate-related disasters. While the Disaster Management Act (DMA) provides a foundational legislative framework, recent events have exposed critical gaps in coordination, early warning systems, and institutional capacity at the local level. We need to capitalise local government for climate Action Municipalities financial strain is staggering. According to the Financial Protection Forum and the World Bank, annual disaster relief costs in South Africa cost an average of R3.7 billion per year, with uninsured losses accounting for 86% of the total, necessitating significant government support. The annual funding gap is projected to exceed R2.3 billion, compared to the current pre-arranged funding of R1.4 billion. Municipalities, especially those in vulnerable coastal regions, face a vicious cycle. Disasters destroy infrastructure, diminish the tax base, and force diversion of funds from planned development to emergency relief. Compounding the issue, critical infrastructure built to outdated standards is collapsing under the strain of today's climate. This is not just about emergency responses. These are structural fiscal threats that require structural governance reform. In addition, municipalities do not always have the resources to meet the need for infrastructure maintenance and climate-resilient development. The current review of the White Paper on Local Government is an opportunity to redefine the mandate and machinery of municipalities. It is time to embed climate resilience not as an add-on, but as a foundational pillar of local governance. From its work with municipalities and local governments, even cities and towns with strong climate change policies, are not streamlining these policies across departments within local government. Evidence shows that climate change training within cities is perfunctory and not integrated into planning, land-use management or even the development of human settlements. The Fiscal Framework for Local government needs a revamp Funding mechanisms for disasters are reactive and delayed, often reallocating municipal budgets with adverse effects. Capacity constraints include an aging workforce, lack of succession planning, and insufficient skilled personnel. To address these shortcomings, municipal budgeting processes must internalise climate risks. This includes mandatory climate impact assessments for capital projects, ring-fenced adaptation funding, and performance incentives tied to resilience-building. Secondly, the intergovernmental fiscal system needs a redesign. The Equitable Share formula and conditional grants must evolve to reflect disaster vulnerability and adaptation costs, not just population and service coverage. Fiscal equity in a country faced with increasing climate change disasters means prioritising the municipalities most at risk. Thirdly, smaller and rural municipalities need urgent support to build the technical and institutional capacity for adaptive planning. Without this, climate impacts will continue to widen the inequality gap between metros and outlying areas. Financing and investing in climate resilience The current White Paper was born in an era that did not yet grasp the scale of instability we now face. Today's municipalities must be more than service providers. They must become ecosystem stewards—local actors capable of managing risks that transcend administrative borders and temporal planning cycles. The Presidential Climate Commission (PCC) published recommendations on the Disaster Management System in South Africa following Extreme Climate-Related Weather Events, where it recommends strengthening institutional coordination and governance through enhanced multi-agency collaboration and intergovernmental cooperation. Establishing an independent, centralised coordination entity with authority to oversee disaster management at all levels is critical to reduce bureaucratic delays and political interference. The logic of an ambitious climate action and energy transition action plan is underpinned that while the issues we face are global, the most effective solutions are local. Cities are where policy meets reality. Across the country, communities are responding to the impacts of climate change. Yet, the public and private financial systems designed to support climate adaptation continue to overlook these same communities. Local actors are too often left on the sidelines of investment decisions that directly affect their futures – despite possessing deep knowledge of their ecosystems, vulnerabilities, and strengths. These challenges aren't one-off or new problems—but a deeper reflection in how adaptation finance is designed and delivered, from climate adaptation to equitable service delivery, the local government overall will ensure that the global urban agenda is meaningful for climate action. For those with deeper pockets - banks, insurers, investors, and development finance institutions, the challenge is to move beyond business-as-usual—to rethink how capital is deployed] and what resilience truly looks like. Zimasa Vazi, Senior Manager, Stakeholder Relations, presidential Climate Commission.
IOL News
11-06-2025
- Politics
- IOL News
Why local government fiscal health must be climate-proofed
As South Africa reviews the 1998 White Paper on Local Government, we must confront a climate reality that our municipal systems were never designed to withstand. We are facing an increasing frequency and complexity of disasters, driven by climate change, urbanisation, and entrenched socio-economic vulnerabilities. These disasters are no longer isolated shocks; they are the new baseline. And they are cutting municipal budgets—often with irreversible consequences. Over the past two decades, South African municipalities have absorbed the cost of increasingly frequent and severe climate-related disasters. While the Disaster Management Act (DMA) provides a foundational legislative framework, recent events have exposed critical gaps in coordination, early warning systems, and institutional capacity at the local level. We need to capitalise local government for climate Action Municipalities financial strain is staggering. According to the Financial Protection Forum and the World Bank, annual disaster relief costs in South Africa cost an average of R3.7 billion per year, with uninsured losses accounting for 86% of the total, necessitating significant government support. The annual funding gap is projected to exceed R2.3 billion, compared to the current pre-arranged funding of R1.4 billion. Municipalities, especially those in vulnerable coastal regions, face a vicious cycle. Disasters destroy infrastructure, diminish the tax base, and force diversion of funds from planned development to emergency relief. Compounding the issue, critical infrastructure built to outdated standards is collapsing under the strain of today's climate. This is not just about emergency responses. These are structural fiscal threats that require structural governance reform. In addition, municipalities do not always have the resources to meet the need for infrastructure maintenance and climate-resilient development. The current review of the White Paper on Local Government is an opportunity to redefine the mandate and machinery of municipalities. It is time to embed climate resilience not as an add-on, but as a foundational pillar of local governance. From its work with municipalities and local governments, even cities and towns with strong climate change policies, are not streamlining these policies across departments within local government. Evidence shows that climate change training within cities is perfunctory and not integrated into planning, land-use management or even the development of human settlements. The Fiscal Framework for Local government needs a revamp Funding mechanisms for disasters are reactive and delayed, often reallocating municipal budgets with adverse effects. Capacity constraints include an aging workforce, lack of succession planning, and insufficient skilled personnel. To address these shortcomings, municipal budgeting processes must internalise climate risks. This includes mandatory climate impact assessments for capital projects, ring-fenced adaptation funding, and performance incentives tied to resilience-building. Secondly, the intergovernmental fiscal system needs a redesign. The Equitable Share formula and conditional grants must evolve to reflect disaster vulnerability and adaptation costs, not just population and service coverage. Fiscal equity in a country faced with increasing climate change disasters means prioritising the municipalities most at risk. Thirdly, smaller and rural municipalities need urgent support to build the technical and institutional capacity for adaptive planning. Without this, climate impacts will continue to widen the inequality gap between metros and outlying areas. Financing and investing in climate resilience The current White Paper was born in an era that did not yet grasp the scale of instability we now face. Today's municipalities must be more than service providers. They must become ecosystem stewards—local actors capable of managing risks that transcend administrative borders and temporal planning cycles. The Presidential Climate Commission (PCC) published recommendations on the Disaster Management System in South Africa following Extreme Climate-Related Weather Events, where it recommends strengthening institutional coordination and governance through enhanced multi-agency collaboration and intergovernmental cooperation. Establishing an independent, centralised coordination entity with authority to oversee disaster management at all levels is critical to reduce bureaucratic delays and political interference. The logic of an ambitious climate action and energy transition action plan is underpinned that while the issues we face are global, the most effective solutions are local. Cities are where policy meets reality. Across the country, communities are responding to the impacts of climate change. Yet, the public and private financial systems designed to support climate adaptation continue to overlook these same communities. Local actors are too often left on the sidelines of investment decisions that directly affect their futures – despite possessing deep knowledge of their ecosystems, vulnerabilities, and strengths. These challenges aren't one-off or new problems—but a deeper reflection in how adaptation finance is designed and delivered, from climate adaptation to equitable service delivery, the local government overall will ensure that the global urban agenda is meaningful for climate action. For those with deeper pockets - banks, insurers, investors, and development finance institutions, the challenge is to move beyond business-as-usual—to rethink how capital is deployed] and what resilience truly looks like. Zimasa Vazi, Senior Manager, Stakeholder Relations, presidential Climate Commission.
IOL News
26-05-2025
- Politics
- IOL News
Fixing South Africa's ailing municipalities: White paper on local government under review
Cogta Minister Velenkosini Hlabisa said there was a need to reassess the funding model for municipalities. Image: File Picture Unethical practices, poor accountability, a broken social contract with communities and the weak integration of traditional governance systems are among the challenges facing South African municipalities. This is according to a discussion document released as part of the review of the White Paper on Local Government. The Department of Cooperative Governance has commenced the process of reviewing the White Paper on Local Government, which is expected to be completed next year. The review process will examine the funding model of municipalities and could lead to the closure of municipalities that are failing to provide services. The discussion document notes that there is reasonable concern and widespread doubt about the ability of most municipalities to perform their roles effectively. 'Manipulation and methods aimed at maintaining power and/or rapid enrichment have spread, resulting in corrupt, nepotistic, and unethical activities within municipalities. Many political leaders have continued to turn a blind eye to these practices, especially when municipal resources have been used and abused to fund party political operations and campaigns," it said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ The poor relationships with citizens are also a significant issue. 'There is a large divide between many municipalities and their communities, including residential, business, university, and institutional communities. The fact that, as of 2024, households owe municipalities a staggering R230.5 billion (74% of total municipal debt) is an indicator of the broken social contract,' said the discussion document. It further noted that there was weak integration of traditional governance systems which presents both challenges and opportunities for improving citizen service delivery and community development. 'Traditional leaders, who wield significant cultural legitimacy and grassroots influence, command respect from their communities and operate alongside constitutionally mandated municipal structures tasked with democratic governance and service provision. Traditional leaders potentially have an important role to play in nation-building, promoting social cohesion, contributing to municipal integrated development plans,' it said. Municipal budgets have also borne the brunt of climate-induced disasters, with extreme weather events between 1998 and 2025 increasing emergency expenditures by 320% across South African cities. 'Flooding in Durban during the 2022 rainy season required R780 million in unplanned drain clearance and road repairs, diverting funds from scheduled housing projects. The frequency of such events has necessitated permanent budget line items for disaster response,' it concluded. Cooperative Governance and Traditional Affairs (Cogta) Minister Velenkosini Hlabisa said there was a need to reassess the funding model for municipalities, pointing out that the current model—where municipalities collect 90% of revenue and other spheres of government contribute 10%—is not working. He added that the number of municipalities will also be revisited, and municipalities that are not delivering services may be dissolved. He stated, 'If a municipality is not fit to deliver services, why should we keep that municipality?' ActionSA member of Parliament Alan Beesley expressed deep concern over the worsening state of municipalities. He said poor service delivery by the municipalities not only negatively impacts the lived reality of many South Africans but also causes significant damage to the economy. 'As such, ActionSA welcomes the Review. It is important that in addressing the challenges faced by municipalities, the review does not become a waste of time and money but rather that the outcomes are pragmatic and implementable. Key challenges are the lack of governance, accountability, and consequence management. This will only change if the corrupt are put in jail and the incompetent are fired.' DA spokesperson on Cogta Marina Van Zyl stated that they welcomed the review but expressed concern that this process is yet another attempt to repackage systemic failures without a clear path to reform. 'Municipalities across the country are collapsing under the weight of poor governance, unfunded mandates, cadre deployment, and political interference. With only 13% of municipalities receiving clean audits and billions lost to fruitless and unauthorised expenditure, the rot is deep and structural. The DA believes that reform must begin with professionalised local government, strong consequence management, and electoral reform to stabilise fragile coalitions. The DA will engage with the review process constructively but firmly—advocating for reforms that give power back to communities, not to national bureaucrats,' she said. Local government expert Michael Sutcliffe said after 25 years, it was good that the white paper was being reviewed. 'We should be careful not to disrupt systems that are functioning well and should fix the things that need to be fixed.'
