The Financial and Fiscal Commission says government needs to develop a common definition of what is meant by municipal functionality.
The Commission has tabled its report in parliament on the Division of Revenue for the 2020/2021 financial year in Cape Town.
It says the lack of a common definition is reflected in the number of interventions to help improve the functioning of municipalities that have so far not produced results.
Commission chairperson, Daniel Plaatjies, says a large number of municipalities as reflected in the various reports of the Auditor General are dysfunctional and on the verge of collapse.
“The problem is not about interventions per se. But if you haven’t got a common definition of what functionality is and what are the different capabilities to be checked in terms of the performance of a municipality, then it’s all different problem.”
He notes that a number of interventions has been made but “we don’t seem to make a turnaround.”
The Financial and Fiscal Commission argues that tighter credit control systems between Eskom and municipalities are needed.
It also recommended a memorandum of understanding between the power utility and municipalities.
Oversight should be given to Ministers of Finance and Co-operative Government, it adds.