Western Cape municipalities have again shown to be financially resilient and agile in the face of constraints brought about by the Covid-19 pandemic, as reflected in a study by the provincial Department of Local Government in collaboration with the Hanns Seidel Foundation, Stellenbosch University and the Civics Academy. The study demonstrates that local governments in the care of the DA embody good governance, which ensures stability and service delivery.
The Department is applauded for its forward thinking approach in support of Western Cape municipalities. By collaborating on this venture, the Western Cape Government has collected information and rigorous data that shows the true impact of the impact in the short term by taking into account the operational and financial sustainability of the municipalities, as well as their obligations, expenditure and debt. Additionally, it was also able to suggest what the long-term implications would be in a recovery period.
The following municipalities were interviewed: Stellenbosch, Drakenstein, Bergrivier, Hessequa, Swartland, Swellendam, Kannaland, Laingsburg, Central Karoo, West Coast, Cape Winelands and the City of Cape Town.
MPP America says: “After the interviews were concluded, it found that local governments which ensured long-term financial planning and invested in innovative administrative mechanisms were able to adapt to the changing circumstances in which they found themselves. Good relationships between the executive and the civil services, coupled with stable councils and prudent financial management were also deemed as crucial factors. For example, Stellenbosch was able to maintain a budget surplus between and increase revenue collection within the first three quarters of pandemic. This means our governments could continue serving residents with dignity.
However, municipalities controlled by the ANC had their already already-deteriorating conditions amplified. In Laingsburg, municipal cash flow was significantly hampered. As a result of constant financial and governance instability, Kannaland was adversely affected as well. This is also supported by the fact that the Provincial Executive has had to intervene in terms of Section 139 (5) of the Constitution, which ended in an independent administrator being elected to implement a Financial Recovery Programme.
The study also raises critical questions of the role national government should be playing in support of provinces and municipalities. For example, the unreliability of equitable shares and conditional grants from Pretoria jeopardises the long-term sustainability of municipal finances. On the other hand, the provincial Department’s foresight and proactiveness in this regard has culminated in the proposed Sustainable Infrastructure Development and Finance Facility (SIDAFF) programme. Owing to the importance of this initiative, I will be asking the Minister as to what the progress is with the development of this project.”
Despite all of the economic and pandemic pressures, the DA in the Western Cape has strived towards good governance. As our country approaches the local government elections in 48 days’ time, residents are given a clear choice: a path of continual decline or one of hope and prosperity.
