Municipalities across the country have received their share of the R33.9 billion first tranche of the Local Government Equitable Share (LGES)

Local Government Equitable Share’s initial R33.9 billion tranche has been distributed to municipalities nationwide (LGES).

According to Lungi Mtshali, a spokesman for Cooperative Governance and Traditional Affairs, the tranche was deposited to the municipalities’ main bank accounts.

The current local government financial year, which starts in July, will see the transfer of the LGES allocation in three instalments, according to a statement from the ministry.

Section 216 of the Constitution forms the basis for the distribution of the LGES to all municipalities.

According to the yearly Division of Revenue Act (DORA), the clause allows the national government to distribute funds to local governments to help them carry out their duties.

According to Mtshali, the equitable share subsidizes administrative costs while funding towns to offer essential services to low-income households free of charge.

For those towns with the least ability to pay for these expenses out of their own income, it also covers other essential services.

The cost of delivering basic services to each of these low-income households will be subsidized by R488.42 per month in 2022–2023 under the LGES’ basic services component, according to Mtshali.

The subsidy covers the cost of providing:

– Free basic water (each disadvantaged household receives six kilos each month) (R168.22 per household below the affordability threshold).

– Electricity (50 kilowatt-hours monthly) (R107.04 per household below the affordability threshold).

– Sănătification (R115.95 per household below the affordability threshold).

– Removal of refuse (R97.20 per household below the affordability threshold).

“The funding for municipalities will help them, among other things, provide free essential services to low-income households through initiatives like indigent support programs.

According to Mtshali, “These programs ensure that qualifying households that have access to water, electricity, sanitation, and waste removal receive these services for free or at significantly reduced prices, which ensures that they are unable to pay for certain fundamental services.”

He said that Dr. Nkosazana Dlamini Zuma, the COGTA Minister, urged households that are unable to pay for essential services to get in touch with their local municipalities to find out if they are eligible to be recipients of their community’s indigent support program.

As required by the Municipal Structures Act, the Minister has additionally urged municipal councils to see to it that municipal public accounts committees (MPACs) are constituted and fully operational.

As this is a significant difficulty the industry is experiencing, Mtshali stated that the department will continue to coordinate federal, provincial, and local support for local towns to provide basic services and to set up better audit procedures.

Using the District Development Model (DDM) method, the department, he claimed, “is coordinating and collaborating with sector departments to support municipalities, as contemplated by Section 154 of the Constitution.”

“Revenue collection remains a key factor in determining the financial health of municipalities, despite the transfer of the LGES to municipalities

The cost of the services provided by municipalities must still be covered by the citizens.

“We urge citizens to pay for the services they receive so that municipalities can collect revenue and provide quality services to the communities,” he said.

“Municipalities need to have access to adequate sources of revenue to enable them to undertake the functional responsibilities assigned to them.