Struggling metros need a government bailout, says study
Ratings Afrika index warns of deteriorating service delivery if municipalities do not get help
The quality of service delivery in municipalities is deteriorating and the only way for local authorities to avoid collapsing is through a government bailout, says a study.
Municipalities are at the coalface of service delivery in SA and provide day-to-day services such as distributing water, electricity, refuse removal and fixing potholes. The state of these municipalities is, however, a major cause of concern. A lot of them are struggling to collect revenue for services rendered such as water and electricity and are having to depend on provincial governments to remain afloat. The department of co-operative governance and traditional affairs has worked on a turnaround plan for the most distressed municipalities. The Municipal Financial Sustainability Index (MSFI) for 2017/2018, compiled by agency Ratings Afrika, was released on Tuesday. The index evaluates operating performance, liabilities management, budget practices and liquidity position of a municipality and scor...
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