THE Select Committee on Cooperative Governance and Public Administration (Traditional Affairs, Human Settlements, and Water & Sanitation) has raised concerns about the collapse of the Thabazimbi Local Municipality.
On Wednesday, the multi-stakeholder committee visited the municipality following the decision by the Limpopo Department of Co-operative Governance, Human Settlements and Traditional Affairs (Coghsta) to disarm the Democratic Alliance-led coalition and strip of their power following years of internal litigation, which led to a “total collapse” of the municipality.
The committee said it was alarmed by the inclination of the various groupings within the municipality to use resources that could otherwise be used for service delivery to pay their legal fees.
The committee said it considered the municipality “dysfunctional” and “unable” to provide services to the residents.
“These legal actions do nothing to enhance the quality of lives of the people of Thabazimbi, and rob them of financial resources that should have been better invested in delivering quality service delivery,” the chair of the Select Committee on Cooperative Governance and Public Administration, Mxolisi Kaunda, said.
He further said: “What will be central to our deliberations and recommendation to the National Council of Provinces (NCOP), as per Section 139(3)(b), is to protect the interests of the residents of the municipality and ensure that quality service delivery is achieved.
“The committee’s preliminary assessment is that the municipality is dysfunctional, with parallel council and management structures that lead to governance and management challenges. These challenges affect the ability of the municipality to provide adequate service delivery to residents.
“The low staff morale in the municipality is also concerning, with the municipality withholding the salaries of some officials and preventing some from entering the municipal offices. The vacancy rate, especially within Section 57 of the Municipal Systems Act, is also concerning in the context of the central role those managers play in driving the municipality’s strategic objectives.
“Furthermore, the fact that the acting managers appointed on 25 May 2024 for a period not exceeding three months failed to meet the legislated prerequisites, as prescribed, belies the national government’s intention to professionalise and build a capable local sphere of government,” read the committee’s statement.
Among other concerns raised by parliament was the inability to adequately spend the Municipal Infrastructure Grant, which aims to eradicate municipal infrastructure backlogs in poor communities to ensure the provision of basic services such as water, sanitation, roads, and community lighting.
The committee said it was informed that the municipality had only spent 40% of its grant by the end of June 2024.
But Limpopo Coghsta MEC Basikopo Makamu previously told the Sunday Independent that the municipal spending on basic services was at 20%.
Kaunda said this was an indictment for the municipality in the light of dilapidated infrastructure, which was supposed to play an enabling role in economic development and job creation.
“The committee is also alarmed that there is no tangible plan to address the municipality’s escalating debt to Eskom and Magalies Water, as payment for services is the bedrock of continued provision of quality services.
“The committee heard that the municipality owes R304 million to Eskom and R198 million to Magalies Water. The municipality has proposed a payment arrangement with Magalies Water; however, the deal was deemed unacceptable as it does not address the critical issue of the escalation of debt.
“The committee is also concerned that despite the willingness of the local business forum to work with the municipality to enhance investment in the municipality, these positive advances have not been exploited by the municipality,” he said.
The committee felt that this cripples governance within the municipality, and critical committees such as the Municipal Public Accounts Committee (MPAC) were also not functional, which poses serious governance risks for the municipality.
Parliament applauded the support given to the municipality by the South African Local Government Association (SALGA) despite the municipality not paying its subscription fee to SALGA.
According to the report dated October 1, 2024, the finances of the municipality were in a dire state.
Records indicated that the municipality was financially bankrupt due to the significant debt owed for bulk purchases and creditors.
Among those owed by the municipality was Magalies Water Board with an amount of R198 million.
According to the committee, as of August 2024, the municipality proposed a payment arrangement with Magalies, however, the proposal was unacceptable as it did not address the critical issue of the escalation of debt.
It was also mentioned that the municipality adopted the 2024/25 budget without reaching the quorum.