3. Electronic Theses and Dissertations (ETDs) - All submissions
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Item Enhancing financial oversight of the Public Accounts Commitee in the Nelson Mandela Bay Metropolitan Municipality(2017) Motsilili, ChrisIn recent years, increased attention being given to accountability on public finances in South African municipalities saw an increase in the number of municipalities establishing Municipal Public Accounts Committees (MPACs) to address deficiencies and gaps in the local government accountability mechanisms and oversight. The purpose of the study was to establish the alignment between the recently established MPACs and the generally accepted public accounts committees with respect to the institutional design, practices and performance assessment. A qualitative case study of the Nelson Mandela Bay Metropolitan Municipality (NMBM) MPAC was followed where documents were analysed and semi-structured in-depth interviews with purposively selected participants were conducted. This research study revealed some gaps in the alignment of the NMBM MPAC to the generally accepted public accounts committees. The most crucial gap that emerged pertained to the mandate and powers of the NMBM MPAC. Recommendations for enhancing the financial oversight of the NMBM MPAC were made. The study also suggests further research on a larger number of municipalities.Item The effects of fiscal decentralization on the provision of basic services in Emalahleni local municipality(2016) April, Mvuyisi Sibongile MkhululiFiscal decentralization is defined as the degree of autonomy and responsibility given to subnational governments. Fiscal decentralization looks at the assignment of functions to different levels of government and the appropriate fiscal instruments for carrying out these functions. Fiscal decentralization implies a level of autonomy given to sub-national governments. Through decentralized budgeting, local governments are tasked with the responsibility of ensuring that service delivery to communities is effective and efficient. Unfortunately the subnational spheres of government are more dependent on the national allocations as a result of a more centralized revenue collection system. The national budget is then shared vertically across the three spheres of government using the equitable share formula. The Local Government Equitable Share (LGES) is mainly allocated for the provision of basic services to local communities. The equitable share is also complemented with various conditional grants aimed at the reduction of infrastructure backlogs and other national priorities like water and electricity. However, the outcomes have been uneven across municipalities with some seen as excellent and others as dysfunctional. The South African Twenty Year Review Report indicates that challenges with the quality and functionality of municipal services in municipalities have led to backlogs and unevenness in the quality of service delivery which has contributed to deep-seated dissatisfaction in some communities, as evidenced by the steep rise in service delivery protests. This is an indication of how municipalities are not able to match the revenue they receive from the National Treasury and from collections made through rates and taxes with the amount of services expected from them. In a decentralized model of governance where national and provincial government are able to assign and delegate their responsibilities to local government, funding must then follow these functions. In doing do this will ensure that the responsibilities municipalities are tasked with are backed up by the sufficient budgets and other necessary resources from national or provincial governments. Unfortunately this is not the case in South Africa as seen in the multiplicity of ‘unfunded and underfunded mandates.” This clearly shows that the local government sphere has not been receiving sufficient revenue from the Fiscus to deal with the growing demand for services propagated by increased populations. This is a direct result of the failures of the fiscal framework that governs the allocation of funds to local government resulting in the smaller and rural municipalities being unable to deliver services to their communities. The Local Government Equitable Share formula also does not ensure equity among the citizens, hence most rural communities are still without basic services, including lack of sanitation and refuse collection in all the villages of the country. Even if the LGES was sufficient to ensure that basic services are catered for other functions of local government would not be covered and therefore compromising the principle of horizontal equity among the citizens of South Africa who are entitled to equal benefits, privileges and rights within the boundaries of the republic.Item Financial analysis of the capital debt funding facilities available to municipalities in South Africa(2016) Sebapadi, Adelaide MaphuthiThe issue of service delivery in South Africa has been one of the main priorities for the post-apartheid government since 1994. Local government, through municipalities, has been tasked with the provision of services to citizens. In order to achieve this, the municipalities need to invest in massive infrastructure, both to address the infrastructure backlog inherited from under-investment in previously black communities as well as infrastructure to support economic growth and development across the full breath of the Republic. Based on the revenues available from own sources and intergovernmental transfers, municipalities are unable to meet their constitutional mandate and this creates an area of participation for the private sector. Access to capital markets becomes an important source of funding that municipalities, in addition to borrowing from financial institutions such as banks, should aggressively pursue. This is an area that the metropolitan municipalities in particular, should prioritise as they are in a better position to exploit, than the smaller and less-resources local municipalities. Government can then focus on finding innovative ways of reining in the local municipalities, in as far as accessing capital markets.