‘This cannot continue’: Ramaphosa unveils a bold reset of South Africa’s failing municipalities

President Cyril Ramaphosa has launched the revised local government White Paper, admitting that too many municipalities are failing the people they serve.

He called it a “bold reset” of the system.

Water and electricity money will be ring-fenced for maintenance.

And every water and electricity provider will need a licence.

Ramaphosa launched the Revised White Paper on Local Government at the Birchwood Hotel and OR Tambo Conference Centre in Ekurhuleni on Thursday, 22 October.

“We must therefore acknowledge, without qualification, that too many of our municipalities are failing to meet the needs and expectations of the people they are meant to serve,” he said in his speech. “This cannot continue.”

WATER AND ELECTRICITY MONEY RING-FENCED

One of the biggest changes affects the money residents pay for water and electricity.

Ramaphosa said some municipalities have been using that money for other things.

“Revenues from the sale of electricity and water are diverted to other functions, instead of being reinvested in the infrastructure needed to deliver those services,” he said.

“Going forward, revenues from the sale of electricity and water will be ring-fenced and used to maintain infrastructure before anything else.”

“We cannot build our way out of failure if we do not maintain what we have already built.”

LICENCES FOR WATER AND ELECTRICITY PROVIDERS

The White Paper will also separate the role of service authority from service provider.

“We are separating the role of service authority and service provider, and introducing a compulsory licensing requirement for all water and electricity providers,” Ramaphosa said.

NOT EVERY MUNICIPALITY WILL DO EVERYTHING

The White Paper moves away from a one-size-fits-all model, and links municipalities’ powers and functions to their size, capability and performance.

“Where a municipality is unable to carry out a particular responsibility, that responsibility should be assigned elsewhere,” Ramaphosa said.

He said some services could be better provided at a regional level, or through partnerships and concession arrangements. Constitutional and legislative changes may be needed to make this happen.

MUNICIPALITIES OWE ESKOM MORE THAN R120 BILLION

The White Paper also aims to put municipalities on a sustainable financial footing.

“Municipalities owe Eskom more than R120 billion, and many are in arrears to water boards,” Ramaphosa said.

He said those who can afford to pay for services must contribute, but that government must “earn that contribution through reliable services, transparent decisions and responsible stewardship of public funds”.

‘TRUST WILL NOT BE RESTORED BY SPEECHES’

The White Paper recommends sweeping changes to professionalise municipalities, with officials appointed for their competence.

“There must be consequences when public resources are stolen, procurement is manipulated or public duties are neglected,” Ramaphosa said.

“Trust will not be restored by speeches. It will be restored when a reported fault is fixed promptly.”

A MESSAGE BEFORE THE ELECTIONS

The launch comes less than two weeks before the 4 November local government elections.

Ramaphosa warned that political instability must never stop services from being delivered.

“A disagreement in council must never become an excuse for an unapproved budget, an abandoned project or the collapse of an essential service,” he said.

“Our people must never be held hostage by political instability.”

WHEN WILL THE CHANGES HAPPEN?

Cabinet has endorsed a phased approach to implementation.

A time-bound Local Government Transition Management Body will be set up, with coordinated leadership from the Department of Cooperative Governance and Traditional Affairs (CoGTA), the Presidency and National Treasury.

A single Local Government Transition Plan will set out what will change, who’s responsible and how progress will be measured.

Some reforms will require new legislation, new financing arrangements and possibly constitutional amendments, so they’ll take time.

“But the work must begin now,” Ramaphosa said.

WHAT IT MEANS FOR RESIDENTS

The White Paper doesn’t change municipal services or bills immediately.

But over time, the government says residents should see more reliable water and electricity, better-maintained infrastructure and more accountable municipalities.

WHAT IS THE WHITE PAPER?

The White Paper is the government’s main policy framework for how municipalities should work.

The original version dates back to 1998, and Cabinet approved the revised version on 23 September.

Ramaphosa said the reforms build on the progress made since 1994.

More than 90% of households now have access to electricity, and more than 87% have access to piped water.

WHAT WOULD YOU MOST LIKE TO SEE IMPROVE IN YOUR MUNICIPALITY?