Bigger isn't always better

By Timothy Nast

The argument that fewer, larger local municipalities is the best way to address service-delivery problems is just another way in which the ANC is trying to hide its inefficiency to govern and deliver services.

Smaller municipalities are more in touch with their residents and can be held to account for their promises. They are also more hands-on with service-delivery problems and efficient financial management makes smaller municipalities more viable.

As the executive mayor for the Midvaal Local Municipality, when there is a problem in my community I am able to go out and respond to it immediately. I don’t believe that mayors of larger metro municipalities are able to have this kind of approach.

During the recent M&G debate that I took part in, Gauteng’s local government and housing minister Humphrey Mmemezi took an idealistic approach to dealing with ineffective, non-delivering local municipalities. In his view merging smaller municipalities into larger ones is the answer to failing, poorly run councils.

This absurd, fundamentally flawed notion highlights the ruling party’s way of dealing with real issues. When something goes wrong the ANC takes the easy way out by changing the structure and the Act and then simply moving on, rather than dealing with the root cause of the problem and removing the ineffective, corrupt officials, councillors and mayors. I believe that cadre deployment has been the direct cause of corruption and poor service delivery in the municipalities across the country.

The focus should rather be on ensuring you have the right people in critical positions, ensuring the efficient collection of monies owed to the municipality, enforcing the correct issuing of accounts and putting proper credit-control systems in place. Once municipalities get this right they must use money effectively to deliver services to all.

Mmemezi believes that larger municipalities will have bigger budgets and therefore could provide more services. In reality however the City of Johannesburg — a large ANC-run municipality — is clearly out of its depth. Johannesburg is billions of rand in debt, has a massive billing crisis and in some areas the bucket system is still in use. How can this be a best-practice model?

In sharp contrast is the Midvaal Local Municipality — a smaller municipality with an estimated population of 100 000 — a municipal area that covers 2 000 square kilometres in Southern Gauteng (geographically the largest municipality in the province) and an operating budget of R544 million in 2011/2012, with 600 employees. Midvaal is a small but effective local government with eight unqualified audit reports under its belt.

The key to our financial success has been our credit-control policy. We are extremely strict when it comes to non-payment and there are no exceptions when legal action has to be taken. Between 2001 and 2007 we achieved an average payment rate of over 100% and outstanding debt decreased from R100 million to R64 million.

In 2010/2011 we have seen a decrease in the payment rate due to the economic crisis. The current payment rate is now at 97% and outstanding debt is again R100 million, which is still the lowest in Gauteng. In Midvaal our politicians take a hands-on approach and constantly monitor how monies are spent.

With this strict financial discipline, numerous clean audit reports and a healthy bank balance, funds have been channelled into infrastructure upgrades. Rates increases are always kept to a minimum. Millions of rands have been spent on upgrading tarred and gravel roads and electricity infrastructure has been upgraded to reduce power failures. Municipal staff are appointed on merit and no “jobs for friends” are tolerated. Corrupt and inefficient employees are disciplined and where necessary, dismissed.

Ten years after its establishment Midvaal is not only widely recognised as the best municipality in Gauteng but the Gauteng government has confirmed that Midvaal offers the best quality of life of all municipalities in the province.

Midvaal is a prime example of where bigger is not always better.

Councillor Timothy Nast is the executive mayor of Midvaal Local Municipality