Key Takeaways
- The Mogalakwena Local Municipality in Limpopo, South Africa, has struggled with poor audit outcomes, corruption, and financial mismanagement for nearly a decade.
- A joint venture between the municipality and two mining companies, Valterra and Ivanplats, has helped improve the municipality’s audit outcomes and service delivery.
- The mining companies have invested in the municipality’s infrastructure, including a wastewater treatment plant and equipment for maintaining roads and clearing drains.
- The municipality has achieved back-to-back unqualified audit opinions from the Auditor-General of South Africa, indicating a significant improvement in its financial management.
- The partnership between the public and private sectors is seen as a model for improving service delivery and promoting accountability in local government.
Introduction to the Municipality’s Challenges
The Mogalakwena Local Municipality in the Waterberg region of Limpopo, South Africa, has been plagued by poor audit outcomes, financial embezzlement, and inadequate service delivery for nearly a decade. The municipality’s problems have been exacerbated by political infighting, which has even led to the assassination of some municipal employees. The situation has been further complicated by uncollected garbage, wasteful and irregular expenditures, and a lack of accountability. However, in recent years, the municipality has undergone a significant transformation, thanks in part to a joint venture with two mining companies, Valterra and Ivanplats.
The Partnership with Mining Companies
The partnership between the municipality and the mining companies began when the current political administration took office in November 2021. At the time, the municipality was in fiscal distress, with over R2 billion in unauthorised, irregular, and fruitless expenditure. The council’s operating budget was also being swallowed up by salaries, which accounted for over 60% of the budget. The municipality’s fleet of vehicles was in disrepair, and grant-funded projects had stalled due to mismanagement of funds. However, with the help of Valterra and Ivanplats, the municipality has been able to turn things around. The mining companies have invested in the municipality’s infrastructure, including a wastewater treatment plant and equipment for maintaining roads and clearing drains.
Improvements in Service Delivery
The partnership between the municipality and the mining companies has led to significant improvements in service delivery. For example, Ivanplats invested R250 million in the R180 million Masodi Wastewater Treatment Works, which had been stalled due to misappropriation of funds. The project has now been completed, and the plant is treating sewage for thousands of households. Valterra, meanwhile, has provided the municipality with a Jetpatcher, a specialised pothole-patching machine, and a vacuum jet for clearing drains and sewage spills. These machines have been instrumental in maintaining the town’s roads and preventing hazards. The municipality has also achieved back-to-back unqualified audit opinions from the Auditor-General of South Africa, indicating a significant improvement in its financial management.
Challenges Ahead
While the partnership between the municipality and the mining companies has been successful, there are still challenges ahead. The municipality’s water shortages persist, and the fleet is not yet complete. Additionally, the municipality must guard against complacency and ensure that the progress made is sustained. However, the mayor, Ngoako Thulani Taueatsoala, is optimistic about the future. He believes that the partnership between the public and private sectors can be a model for improving service delivery and promoting accountability in local government. The partnership has shown that when the public purse is guarded by a culture of accountability, and private enterprise aligns its social licence with the community’s real needs, significant progress can be made.
Conclusion
The transformation of the Mogalakwena Local Municipality is a testament to the power of partnerships between the public and private sectors. The joint venture between the municipality and the mining companies has helped to improve the municipality’s audit outcomes, service delivery, and financial management. While there are still challenges ahead, the progress made is significant, and the partnership has the potential to be a model for other municipalities in South Africa. The mayor’s commitment to accountability and transparency has been instrumental in turning the municipality around, and the investment by the mining companies has been crucial in improving the municipality’s infrastructure. As the municipality continues to move forward, it is essential that the progress made is sustained, and that the partnership between the public and private sectors continues to be a driving force for change.
