Proposed solution for service delivery issues
New administration to overhaul municipal services to improve service delivery
A report proposing a way to overhaul the service delivery of municipal entities has been approved by the Joburg Council.
The Executive Mayor, councillor Herman Mashaba believes that the reintegration of municipal-owned entities, such as City Power, Pikitup and Johannesburg Water into the City of Johannesburg (CoJ) is the solution to improve performance.
Mashaba said when residents voted during the municipal elections, they wanted change – especially relating to service delivery issues – and this process will give them that. “With the service delivery challenges we have inherited in our City, the governance structure of entities is cumbersome and inefficient,” he said.
The CoJ has a complicated structure of municipal-owned entities and an even more complicated relationship with the core of the city. Each entity has a board of directors to whom the managing directors (MDs) or chief executive officers (CEOs) report. This effectively means that the board directs the activities of the MDs or CEOs, and not the CoJ.
“The absurdity of this situation is that the city is the sole shareholder of these entities but they operate under the Company’s Act and are semi-autonomous of the city. How can we be responsible and accountable to residents for fast-tracking service delivery without having complete control over the entities that implement delivery?” asked Mashaba.
Mashaba said the board of directors tends to have all the power for directing service delivery, but accepts zero accountability to the residents.
The process of reintegration will take up to 18 months and will include the formation of administrative and political task teams, feasibility studies on the impact of reintegration, advice on the best way to ensure seamless transition as well as public participation. The existing companies will also be de-registered.
“We cannot afford to shock the system by being hasty, rash or ill-considered, because the residents of our City will suffer,” he said.
But not everyone is happy about the approval of this process and the South African Mine Workers Union (Samwu) has already voiced its displeasure.
Mashaba said he was surprised to hear the comments from the union, as they have always offered messages of support. “It seems their biggest concern is that there will be job losses, but I can assure everyone we will be handling this matter very sensitively. The existing workforce and management will be brought into the city structures,” said Mashaba.
According to him, only the non-executive members of the boards will see their tenures end after the completion of this process. “This will save the CoJ millions of rands that were paid to them in salaries. This money will be redirected to improve service delivery, improve economic growth and generate employment,” he said.
Mashaba said he believed this course of action will address and improve the sluggish and non-responsive nature of service delivery in the CoJ and concluded by saying, “It is a decision we are making in the best interests of our residents.”
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