Honourable Speaker

It must be pointed out at the outset that many of the financial and management problems outlined in the MEC's report, have traceable political roots. The MEC for Local Government is known across the province's municipalities as someone who will intervene in their affairs in a jiffy or not at all - depending on their political affiliation.

Some IFP-run municipalities, like Abaqulusi, have seen ministerial interventions destabilise their capacity to get on with everyday duties.

By contrast, ANC-controlled councils, such as Msunduzi, have been allowed to disintegrate into bankruptcy without the MEC taking notice.

In order to illustrate further that the municipal problems, financial and otherwise, often filter down from top rather than originate in the municipalities, I will mention the latest circumstances of the South African Local Government Association (SALGA), which, in KwaZulu Natal, has been proudly controlled by the ANC since the last local government election.

SALGA, as we know, is mandated by our Constitution to assist in the wholesale transformation of local government in South Africa. Among other functions, SALGA is mandated to assist municipalities with their financial management. Its own finances, according to the Auditor-General, however, are in such a shambles that they cannot be accurately audited.

Despite having been given the worst possible audit evaluation for the third year in succession, SALGA's top three political leaders including its chairperson, Johannesburg Mayor Amos Masondo were re-elected last year for another five-year term.

To give you an overview of SALGA's sins - which are not unlike those committed by municipalities at large - the organisation has breached the Public Finance Management Act, the Public Audit Act, supply chain management regulations and treasury regulations. Similar to the municipalities it oversees, SALGA has a vacancy rate of about 20 percent and a high staff turnover.

All this will tell you that the system of local government squarely fails on an obvious lack of accountability. Failing leadership is routinely re-elected and oversight institutions, such as SALGA, have simply become agents for the implementation of ANC policies. As such, SALGA in particular, no longer critically represents municipalities and their interests.

On a more practical level, most municipalities that fail to deliver basic services do so on account of inadequate personnel. Replacing overpaid and underperforming municipal managers, to mention but one critical personnel category, with experienced officials would be the fairest and cheapest way to build the capacity that many of our municipalities lack so desperately.

Many municipal officials retrenched due to affirmative action because they were surplus to requirements would no doubt welcome the opportunity to come home and contribute to South Africa's development.

It is shocking that many municipal managers require a consultant to act as a mentor when they are paid, on average, R650 000 per year with some earning close to the million rand mark with performance bonuses. But it is also not surprising that many municipal managers struggle to perform.

 Random research has shown that many municipal managers were appointed with nothing more than a matric and a few diplomas on their CV. In some instances, such as at uMgungundlovu, even these qualifications have been fabricated.

We in the Official Opposition believe that the problems that prevail in local government today, and particularly in the "struggling" municipalities are inherent in the system, both of internal organisation and oversight, as it has been handed down from above. We in the IFP fear that the current political and policy bias is contributing to the problems of financial mismanagement and corruption, rather than helping to fight them.

I thank you.

Contact: Inkosi Nyanga Ngubane, 082 805 5709