Redetermination of boundaries indicates fewer nonviable municipalities

Redetermination of boundaries indicates fewer nonviable municipalities

Minister of Cooperative Governance and Traditional Affairs (COGTA) Pravin Gordhan has welcomed the release of the redetermination of the municipal boundaries by the Municipal Demarcation Board (MDB) which he says indicates a possible reduction in the number of nonviable municipalities

Gordhan requested the MDB earlier this year to determine and re-determine the boundaries of various municipalities which have been found to be financially nonviable.

Last year‚ COGTA undertook an assessment of all municipalities across the country‚ the results of which indicated about a third of municipalities were dysfunctional while the other third was at risk.

The assessment also found that several municipalities were not financially viable due to their geographic location and on the concomitant tax or revenue base. Often‚ the financial viability in municipalities correlated with the inability of such municipalities to provide services to their communities and the right quality of standard in a consistent basis.

“We congratulate the MDB on the timely release of this report ahead of the 2016 local government elections. This report indicates a possible reduction in the number of nonviable municipalities‚” Gordhan said on Monday.

 He added that this was “the initial phase of dealing with municipalities that are nonviable‚ and that a further process to assess other municipalities will follow immediately after the 2016 local government elections”.

The determination and re-determination of municipal boundaries in various provinces will be published in their respective provincial gazettes for comment from interested parties.