Fin24

Adopt-a-council bailout proposed

2011-02-20 15:30

Johannesburg - A document with suggestions as to how large companies in the private sector could become involved in a bailout programme for struggling municipalities is currently with Cooperative Government & Traditional Affairs Minister Sicelo Shiceka.

The programme – by means of which the public and private sectors would adopt a municipality – is an initiative by Santam [JSE:SNT] and the Afrikaanse Handelsinstituut (AHI).

AHI chief executive Professor Stef Coetzee said a document containing the proposals had been presented to the minister, whose approval was required for the launch of the programme.

Coetzee said it was not the task of the private sector to step in to solve the problems of local authorities, but businesses could not function optimally if the system collapsed. This was particularly so in the country districts.

There are 283 municipalities in South Africa, 160 of which are in a crisis and delivering only 28 services of an acceptable standard.

Santam chief executive Ian Kirk said the plan was to place poorly managed municipalities under the wings of the better ones in an effort to develop skills.

Kirk said business can no longer remain uninvolved in the crisis at local authority level, as the risks are too high.
 
It was not about corporate social investment but about the survival of enterprises, he said.

But Coetzee said that it could take a long time before a response might be expected from the minister.

Comments
  • Jane - 2011-02-20 13:14

    How about NO, not until unqualified cadres who have no idea how to run municipalities are fired. In our ANC run municipality the people concerned are too busy giving tenders to family, and are overseas studying some useless project at our expense.

  • Liza - 2011-02-20 13:55

    Jane I agree. You've said it. How about the AHI and Santam do something more productive with their money and time.

  • HAB - 2011-02-20 13:55

    NOT with MY insurance money you dont !

  • Mudshark - 2011-02-20 14:01

    NO. Not until we have competent people running the municipalities, and only also when corruption is stopped. The Buffalo City Municipality cannot account for 2 Billion Rand, which is half their budget. Account for that first and I may start thinking about helping.

  • reality check - 2011-02-20 14:03

    - Never going to happen. The only way things will change is if there is a concerted rates boycott and the thieving, lazy, under- qualified are removed from their positions of corruption and greed. Of course voting the ANC out of power would be first prize.

  • Wiseman - 2011-02-20 16:53

    For us professional local governance practitioners it is heartbreaking to watch the municipal decay every day. Because we are professional and not cadres, we don't get the opportunity to actively assist with the turn-around-strategy - it is like doctors whose hand are tied and all they can do is to watch how their patients die

  • mike - 2011-02-21 07:05

    What is that now, about 300-400 years to build up and around 17 to break down. Must be a record of some sort. Even for Africa. Ok ok we will excluded Zim then.

  • Ratepayer - 2011-02-21 07:07

    We already contribute very generously to the municipal coffers through our rates. Wile these have increased faster than inflation, we get less and less for our money. There is no option but to pay rates and I certainly consider this proposal to be one of the dumbest that has been floated yet. To think that it came from the private sector too!!

  • LH - 2011-02-21 09:05

    In other words, the consumer will pay twice for their services, as businesses will need to recoup the lost money somehow.

  • Ric - 2011-02-21 09:48

    Simple...vote DA. Why must business support a failing ANC Govt and Municipalities. Even the DA, by Cape Town standards, don't have some of the brightest buttons on the shirt but a little better.

  • Huh? - 2011-02-21 11:43

    I can understand the lack of delivery by the ruling party, as they just do not have the ability. What I cannot understand is that the public CONTINUE to vote for them. Now THAT is just plain dumb.

  • BigD - 2011-05-25 07:07

    If I adopt a municipality will I have any power or only there for money. It is easy to fix these failing municipalities, just fire the people not doing their work. This never happens, they just get redeployed.

  • BigD - 2011-06-14 07:10

    I am willing to help or adopt a Municipality. But the question is, do they only want money or business expertise. Would I be able to hire and fire staff - if the answer is no, then what would be the point in adopting a Municipality.

  • pages:
  • 1