Improving Makana Municipality's revenue collection was at the top of the agenda at an intervention review workshop organised by administrator Pam Yako on Wednesday.
Improving Makana Municipality's revenue collection was at the top of the agenda at an intervention review workshop organised by administrator Pam Yako on Wednesday.
This was during a summit convened by Yako to map a way forward for the work streams established at the start of her term.
The meeting at the Graham Hotel was attended by politicians, Makana employees, councillors, Rhodes University leaders, local residents, business people and religious leaders.
Yako noted the collection rate as an area which hasn't been addressed properly during the intervention.
Speaking at the event she said improving revenue collection, which is currently sitting at 68%, was key because this is lower than the industry norm of 95 percent.
Democratic Alliance councillor Les Reynolds who has continuously raised concerns about the municipality's collection rate, was very vocal about the issue during the meeting.
Reynolds said the municipality needs to go to the community and tell them they need to pay for services.
He said there are too few economically active people in the municipality, while on the other hand the number of people who cannot afford to pay for services is increasing with new housing projects.
Reynolds said it was essential that the municipality increase the revenue collection rate. "We can't rely on schools and the university. Finances are not going to come right until we increase that rates base," he said. ANC chief whip Julie Wells, who has also been calling for the collection rate to be increased, was in agreement with Reynolds.
In her address at the meeting Yako conceded that apart from improving the collection rate, other issues that have yet to be achieved during the intervention are:
* Addressing litigation challenges and engaging creditors: in the absence of a significant improvement in revenue collection it was difficult to provide a credible payment plan and this remained the biggest challenge; *
Filling key positions (municipal manager, chief financial officer, technical services director).
This was a major risk for the long-term sustainability of the gains made. A functional leadership team was important to drive change,
Yako said. * Improving infrastructure expenditure, especially municipal infrastructure grant (MIG) projects; and * Instituting an organisation-wide change management process. Yako said the underlying philosophy behind the intervention approach was to instil a sense of inclusive governance as envisaged in Section 2 of the Municipal Systems Act.
This concept, as it has evolved, Yako said, includes the principles of active citizenry; participation in matters of governance (including marginalised groups); co-creation with citizens on important and strategic decisions and processes; a mutual sense of respect and accountability; partnership and unity of purpose.
Some of the challenges faced by the municipality leading to the intervention, according to Yako included institutional challenges such as vacancies in key positions and lack of capacity, including the finalisation of the organogram.
Financial challenges included the municipality's four consecutive audit disclaimers and creditors owed more than R100 million (including Eskom owed more than R65m and the auditor general R10m).
Governance challenges included the ability to exercise oversight and the effectiveness of Council structures, and the absence of an effective delegation system.
Yako also spoke about ongoing service delivery failures with water, electricity, sanitation, housing and waste management.
She said the municipality's relationship with communities was a serious challenge due to perceived corruption and maladministration. Central to this was the Kabuso report.
Yako listed the finalisation of the Kabuso report and presenting it to Council as one of the intervention's achievements. The development and finalisation of the Financial Recovery Plan was another. anele@grocotts.co.za
