A Grahamstown-based public service watchdog says a recent high court court judgment against a neighbouring municipality could set a precedent for future public actions against government entities.
A Grahamstown-based public service watchdog says a recent high court court judgment against a neighbouring municipality could set a precedent for future public actions against government entities.
The judgment red-flags contraventions of the Municipal Finances Management Act by Nelson Mandela Bay Metropolitan Municipality.
Five large Port Elizabeth-based corporations succeeded earlier this month in having a 2011 Council decision to adopt the budget for the 2011/12 financial year declared unlawful.The budget determines municipal rates, tariffs and surcharges.
The Judge ruled that the municipality had failed to comply with its statutory and constitutional obligationsand ordered that in future NMBMM must comply with theAct. They were ordered to pay costs.
The matter was heard in the high court in Port Elizabeth.
Director of Grahamstown-based Public Service Accountability Monitor, Jay Kruuse, said "While the applicants would not be very pleased with overall outcome of the judgement it certainly represents a significant ruling detailing what is expected of local government when preparing, consulting and finally approving a budget.
"The judgment will undoubtedly be used as precedent when assessing the extent of public participation required of municipalities," Kruuse wrote. "For instance The judgment could be used to support urgent interdicts brought in the future where municipalities and their council pay lip-service to constitutional and legislative requirements wrt meaningful public participation.
"The ruling also makes it clear that a higher standard/greater degree and more prescriptive level of public participation is required at local government, partly because the laws require this but also because it's most often the area where communities interact most often with government."
In his introduction to the June 4 judgment, Judge Goosen says, "This application raises important questions concerning local democracy. It concerns the nature and extent of the obligation upon a municipal council to ensure public participation in its decision-making processes, in particular the preparation and adoption of a municipal budget."
Kruuse said the implications of the ruling should be conveyed to all municipal councils and senior public servants so that these role players better recognise the importance of their obligations and the need to adhere to regulatory framework.
"A failure to do so will only lead towards greater distrust of local govt and increased service delivery protests as the primary means of engagement," Kruuse said.
"The ruling also equips the public with a greater understanding of what is required and how they can influence budgets and plans within their municipal community."
Download a PDF copy of the full judgement here.
