KZN municipalities overspend budgets but fail to achieve service delivery targets
Officials from the Office of the Auditor-General SA met with members of the Scopa committee at the KwaZulu-Natal legislature this week to give a detailed briefing on the state of municipalities.
Image: Independent Newspapers Archives
The Standing Committee on Public Accounts (Scopa) in KwaZulu-Natal is demanding answers on how municipalities are spending their budgets following concerns that the spending does not align with service delivery.
The spending habits of some municipalities were flagged recently by the Office of the Auditor-General of SA (AGSA) during its meeting with Scopa in the KZN legislature. The AGSA revealed that some municipalities are spending their way into ruin, indicating that some of them often allocate a portion of next year's budget in the current financial year.
Members of the committee stated they are waiting to receive a proper breakdown from the AGSA on how these municipalities are spending their budgets before addressing the matter with the municipalities.
Nomalungelo Mkhize of the AGSA office in KZN said, 'It is important that there is useful, reliable reporting and performance planning for municipalities because it shows that one knows where they are insofar as service delivery is concerned and what needs to be done going forward.'
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She noted that the AGSA found that in most municipalities, not all performance targets were met, even though the majority of the budget was spent. She stated that they found that 26% of municipalities had reported achievements that were not reliable, with indicators and targets that were not well-defined or measurable. Some excluded indicators that measure performance in their core mandated functions. The AGSA office found that it was only the Zululand District Municipality that had spent its budget and achieved 100% of its targets.
She said the reasons for the non-achievement of targets in municipalities include delays in the supply chain management process, poor performance from contractors, inadequate project management, weak financial controls, and insufficient resource planning.
Mkhize added that the budget is spent without correlation to the targets achieved. In one municipality, 100% of the budget was spent, but only 62% of the targets were achieved. In another municipality, they overspent on their budget and only achieved 20% of their core service delivery targets. 'Despite spending the majority of the budget, the key service delivery targets were not achieved,' said the AGSA official.
She said in one of the big municipalities in the province, an improvement has been noted in the percentage of targets achieved, increasing from 74.58% to 83.93% in the current performance period. 'However, the non-correlation of targets achieved and budget spent remains a concern, as fiscal pressures require a more efficient approach to service delivery.'
The non-achievement of key service delivery targets poses significant risks relating to insufficient access to water, sanitation, electricity, and waste management services, leading to deteriorating living conditions. Residents and communities may lose trust in local government, leading to protests, service delivery strikes, and civil unrest. Additionally, there is a lack of consequences for officials who fail to achieve key service delivery targets, the report by the AGSA added regarding this matter.
Tim Brauteseth, the chairperson of the Scopa committee, said they are concerned about the situation and will soon be demanding answers from municipalities. He said despite substantial budgets, key service delivery targets are not being met. This is particularly evident in infrastructure projects, where delays, cost overruns, and substandard work are common. 'A closer study of this situation reveals that in one district municipality, they spent 113% of (their) budget and achieved only 20% of (their) targets. Another spent 100% and only achieved 32%, while another overspent its budget by 120% and underachieved at 54%.'
He said as part of KwaZulu-Natal's (KZN's) Government of Provincial Unity (GPU), the DA will insist that municipal leadership prioritise effective budget management and ensure that funds are allocated and utilised efficiently. He added, 'There must be a stronger focus on planning, monitoring, and executing infrastructure projects to avoid delays and cost overruns. Additionally, maintenance budgets must be adequately funded to ensure the sustainability of existing infrastructure.
'We call on all stakeholders, including municipal leadership, the Auditor-General, and oversight bodies, to take immediate and decisive action to address these issues. 'There must be a culture of accountability and transparency within our municipalities to ensure that public funds are used effectively to improve service delivery and the quality of life for all our province's people,' he concluded.
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