THE ability of many municipalities to deliver services to taxpayers and maintain their infrastructure continues to fall.The latest municipal financial stability index (MFSI), compiled by Ratings Afrika, shows the average index score for the 100 largest local municipalities in terms of revenue dropped from 52 in 2008 to 45 last year.Ratings Afrika’s index measures the ability of municipalities to deliver services. A drop in the index shows a weakening of this ability.Leon Claassen of Ratings Afrika said there were several reasons for the fall in municipalities’ financial stability.“There are low collection rates, due to consumers who are under financial pressure and somewhat higher levels of commitments as municipalities develop infrastructure to expand services. But one of the major reasons remains the level of financial management and expertise, which are lacking or inadequate to apply the necessary financial discipline and principles,” he said.Skills and financial management at lo...
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