MOSSEL BAY NEWS - Delegates attending the Local Government Week programme recommended the Tax Administration Act be amended to allow deductions of municipal debts before refunds are made by the South African Revenue Service (SARS).
Delegates emphasised the need to establish district debt collection agencies to aid municipalities in collecting debt.
Rising municipal debt was becoming a major stumbling block to municipal viability. Currently, municipalities are owed more than R138 billion by government departments, businesses and households.
Enforcement of a National Treasury directive instructing provincial and national departments to pay their debt was highlighted as critical to addressing the debt crisis.
Following the recent three-day Local Government Week programme, it was recommended that the culture of non-payment - especially non-payment by households that are able to pay - must be eradicated to ensure the viability of municipalities.
Early detection
Provinces must establish early detection systems for monitoring and timely intervention through section 139 and 154 of the Constitution in municipalities requiring assistance.
Interventions should be used as a last resort after facilitated assistance and remedial measures have been exhausted.
The South African Local Government Association (SALGA), Provincial Cooperative Governance departments and National and Provincial Treasuries should strengthen their support to improve municipalities’ financial viability.
The delegates agreed on the need to establish guidelines for implementing the write-off of municipal debt, as a means of protecting the indigent.
These guidelines will avoid the temptation of blanket write-off of debt, which would exacerbate the culture of non-payment.
Land use
Regarding land use, it was recommended that the Department of Rural Development and Land Reform, higher education institutions and the South African Council for Planners establish a collaborative relationship to build capacity within municipalities to acquire, manage and govern land use.
The general challenge identified was that planning for land use in municipalities was hindered by lack of skilled town planners, especially in rural municipalities.
Water use master plan
The urgent drafting and implementation of a water and sanitation master plan was necessary and must include establishing an independent regulator. SALGA, working with municipalities, must influence the functions and scope of work of the regulator.
Identification and roll-out of innovations in the water and sanitation sector was deemed necessary. Stakeholders, such as the Water Research Commission and higher education institutions, must be approached to share innovations aimed at dealing with the sanitation challenge in municipalities.
The Local Government Week proposed a range of recommendations considered essential to speed up delivery of services in the local government sphere for the benefit of all South Africans.
Article: Parliamentary Communication Services
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