Kouga Municipality - Conclusions

CONCLUSION

In conclusion and in sum, the following:

·         In terms of sections 40, 41, 43, 151, 205(1), 214(1), 215(2)(c), 238 and 239 of the Constitution, Kouga Municipality has to bring the decision-making processes closer to the local residents and ensure access to the process in order to provide a dedicated democratic and accountable local government to ensure service delivery in a safe and healthy environment with the involvement of community organisations. It is a factual question whether the Kouga Municipality complies with this general constitutional obligation and it is significant to investigate.

·         Apart from the above general constitutional duties, the Kouga Municipality is also constitutionally obligated in terms of section 153 of the Constitution to fulfil certain developmental duties, for instance, sustainable household infrastructure and services, integrated development planning, budgeting and performance monitoring and municipal performance management. Again, it is a factual question whether the Kouga Municipality complies with section 153 of the Constitution and it is significant to investigate.

·         Taking the de facto level of service delivery to the ratepayers in Oyster Bay into account, it is doubtful whether the Kouga Municipality complies with its duties as legally directed by sections 4, 5, 6, 51(a)-(m), 95(1)(a)-(i) and Chapter 4 of the Local Government: Municipal Systems Act, 32 of 2000 (see 4.1 to 4.6 above). A municipality’s responsibilities in the exercise of its executive or legislative authority to respect the rights of citizens and those of other persons that are protected by the Bill of Rights, have already been confirmed by the courts and ratepayers therefore had a sufficient interest in seeking to impugn those decisions of a municipality impacting on the utilization of ratepayers’ funds which they contended to be unlawful (see Fedsure Life Assurance Ltd v Greater Johannesburg Transitional Metropolitan Council 1999 (1) SA 374 (CC) and Kempton Park/Tembisa Metropolitan Substructure v Kelder 2000 (2) SA 980 (SCA)). The Supreme Court of Appeal also endorsed the principle that in a broad sense there is a fiduciary relationship between a local authority and its ratepayers.

·         From the de facto situation in Oyster Bay it is evident that the Kouga Municipality blatantly neglects to perform its functions and duties in terms of sections 152(2) and 153(a) of the Constitution in so far as there is no storm water management system in place, water and sanitation services are for all practical purposes non exciting, the beach facilities are neglected, no control and management of the local beach is exercised and the municipal roads are not maintained in Oyster Bay (see 5 above). The Oyster Bay Ratepayers Association, its members, the ratepayers and residents of Oyster Bay should consider it to approached national government in terms of section 44(2) of the Constitution in this regard.

·         It is also patently clear that the Kouga Municipality do not apply the compulsory principles laid down by section 152(1)(a)-(e) of the Constitution and sections 73(1)(a)-(e) and 74(2)(a)-(i) of the Local Government: Municipal Systems Act, 32 of 2000 in order to achieve optimal service delivery (see 6 above).

·         It is also significant to investigate whether the Kouga Municipality act consistently in accordance with the strict requirements of the Municipal Finance Management Act, 56 of 2003 as amplified in 7 above.

·         Regarding the resent flood damage in Oyster Bay and the Kouga Municipality’s omission to act, it is significant to investigate whether the Kouga Municipality complies with the following mandatory obligations, namely:

Ø      If a framework for disaster management, comprising of the necessary role players, in terms of section 42(1) of the Disaster Management Act, 57 of 2002, is appropriately established and implemented.

Ø      If the powers and duties of the disaster management centre for Kouga Municipality are adequately implemented in terms of section 44 read with sections 47 and 50 of the Disaster Management Act, 57 of 2002. It is also recommended to liaise with the head of the municipal disaster management centre, who should be appointed in terms of section 45 of the Disaster Management Act, 57 of 2002 and the municipal disaster management advisory forum, appointed in terms of section 51 of the Disaster Management Act, 57 of 2002.

Ø      If a municipal disaster management framework, within the scope of a disaster management plan, was prepared in terms of section 52 read with section 53 of the Disaster Management Act, 57 of 2002.

Ø      If the guiding principles in the event of a disaster as specified in terms of section 56 of the Disaster Management Act, 57 of 2002 had been adhere to.

Ø      What financial assistance is available vis-à-vis the availability and application of insurance payouts (and if not, the reasons for the absence of inadequacy of insurance cover), financial assistance available from community, public or other non-governmental support programmes, the financial capacity of the victims of the disaster and their accessibility to commercial insurance and in general the financial assistance provided for in terms of section 56 of the Disaster Management Act, 57 of 2002.

______________________

(Signed on 2012-08-13)

Compiled by Prof Dr DJ Lötz (BIur, LLB, LLM, LLD)

Brooklyn Court, Block A, 1^st floor, 361 Veale Street, Brooklyn

Borchardt & Hansen Inc

Kouga Municipality’s environmental and disaster management duties and obligations

8 What are Kouga Municipality’s environmental and disaster management duties and obligations?

In terms of section 42(1) of the Disaster Management Act, 57 of 2002, each district municipality must establish and implement a framework for disaster management in the municipality aimed at ensuring an integrated an uniform approach to disaster management in its area by, inter alia, including the following role players, namely:

• All statutory functionaries of the municipality;
• All municipal entities operating in its area;
• All non-governmental institutions involved in disaster; and
• The private sector.

Such disaster management framework must be consistent with the provisions of this Act, the national disaster management framework and the disaster management framework of the province concerned.

Section 42 of the Disaster Management Act, 57 of 2002 further demands that each district municipality must establish a disaster management centre for its municipal area. The powers and duties of such disaster management centre, inter alia, include the following (section 44 read with sections 47 and 50), specifically to:

• Promote an integrated and co-ordinated approach to disaster management in the municipal area, with special emphasis on prevention and mitigation;
• Act as a repository of, and conduit for, information concerning disasters, impending disasters and disaster management in the municipal area;
• Make recommendations regarding the funding of disaster management in the municipal area, and initiate and facilitate efforts to make such funding available;
• Promote the recruitment, training and participation of volunteers in disaster management in the municipal area;
• Promote disaster management capacity building, training and education, including in schools, in the municipal area;
• Promote research into all aspects of disaster management in the municipal area;
• Give advice and guidance by disseminating information regarding disaster management in the municipal area, especially to communities that are vulnerable to disasters;
•   Determining levels of risk;
•   Assessing the vulnerability of communities and households to disasters that may occur;
•   Increasing the capacity of communities and households to minimise the risk and impact of disasters that may occur;
•   Monitoring the likelihood of and the state of alertness to disasters that may occur;
•  The development and implementation of appropriate prevention and mitigation methodologies;
•  The integration of prevention and mitigation methodologies with development plans, programmes and initiatives;
•  Promote formal and informal initiatives that encourage risk-avoidance behaviour by organs of state, the private sector, non-governmental organisations, communities, households and individuals in the municipal area;
•  Submit a report annually to the municipal council on -

•  Its activities during this year;
•  The results of the centre’s monitoring of prevention and mitigation initiatives;
•  Disasters that occurred during the year in the area of the municipality;
•  The classifications, magnitude and severity of these disasters;
•  The effects they had;
•  Particular problems that were experienced in dealing with these disasters;
•  The way in which these problems were addressed and any recommendations the centre wishes to make in this regard.

Section 45 of the Disaster Management Act, 57 of 2002 also requires a municipal council to appoint a person as head of its municipal disaster management centre who is responsible for the exercise by the centre of its powers and the performance of its duties.

In terms of section 51 of the Disaster Management Act, 57 of 2002 Kouga Municipality may establish a municipal disaster management advisory forum consisting, inter alia, of:

• The head of the municipal disaster management centre;
• A senior representative of each department;
• Organised business;
• Relevant community-based organisations;
• The insurance industry in the municipality; and
• Representatives of the agriculture sector.

Furthermore, section 52 read with section 53 of the Disaster Management Act, 57 of 2002 requires that each municipal entity indicated in the national or the relevant provincial or municipal disaster management framework must prepare a disaster management plan setting out:

• The way in which the concept and principals of disaster management are to be applied in its functional area;
• Its role and responsibilities in terms of the national, provincial or municipal disaster management frameworks;
• Its role and responsibilities regarding emergency response and post-disaster recovery and rehabilitation;
• Its capacity to fulfil its role and responsibilities;
• Particulars of its disaster management strategies;
• Contingency strategies and emergency procedures in the event of a disaster, including measures to finance these strategies;
• Prepare a disaster management plan for its area according to the circumstances prevailing in the area;
• Co-ordinate and align the implementation of its plan with those of other organs of state and institutional role-players;
• Regularly review and update its plan; and
• Through appropriate mechanisms, processes and procedures established in terms of Chapter 4 of the Local Government: Municipal Systems Act, 2000 (Act No. 23 of 2000), consult the local community on the preparation or amendment of its plan.

A disaster management plan for a municipal area must:

• Form an integral part of the municipalities integrated development plan;
• Anticipate the types of disaster that are likely to occur in the municipal area and their possible effects;
• Place emphasis on measures that reduce the vulnerability of disaster-prone areas, communications and households;
• Seek to develop a system of incentives that will promote disaster management in the municipality;
• Identify the areas, communities or households at risk;
• Take into account indigenous knowledge relating to disaster management;
• Promote disaster management research;
• Identify and address weaknesses in capacity to deal with possible disasters;
• Provide for appropriate prevention and mitigation strategies;
• Facilitate maximum emergency preparedness; and
• Contain contingency plans and emergency procedures.

Section 56 of the Disaster Management Act, 57 of 2002 set down the following guiding principles when a disaster had occurred:

• National, provincial and local organs of state may financially contribute to response efforts and post-disaster recovery and rehabilitation; and
• The cost of repairing or replacing public sector infrastructure should be borne by the organ of state responsible for the maintenance of such infrastructure.

Any financial assistance provided by a national, provincial or municipal organ of state must be in accordance with the national disaster management framework and any applicable post-disaster recovery and rehabilitation policy of the relevant sphere of government, and may take into account:

• Whether any prevention and mitigation measures were taken, and if not, the reasons for the absence of such measures;
• Whether the disaster could have been avoided had prevention and mitigation measures been taken;
• Whether it is reasonable to expect that prevention and mitigation measures should have been taken in the circumstances;
• Whether the damage caused by the disaster is covered by adequate insurance, and if not, the reasons for the absence of inadequacy of insurance cover;
• The extent of financial assistance available from community, public or other non-governmental support programmes; and
• The magnitude and severity of the disaster, the financial capacity of the victims of the disaster and their accessibility to commercial insurance.

Given the above contexts, the Oyster Bay Ratepayers Association is advised to contact the head of the Kouga Municipality and or disaster management centre regarding the flood damage in Oyster Bay, vis-à-vis:

• The framework for disaster management in the municipality in terms of section 42(1) of the Disaster Management Act, 57 of 2002;
• The powers and duties ( see section 44 read with sections 47 and 50 above) of the disaster management centre of Kouga Municipality established in terms of section 42 of the Disaster Management Act, 57 of 2002;
• The municipal disaster management advisory forum, if established in terms in terms of section 51 of the Disaster Management Act, 57 of 2002;
• The disaster management plan in terms of section 52 read with section 53 of the Disaster Management Act, 57 of 2002;
• The guiding principles set out in section 56 of the Disaster Management Act, 57; and
• The financial assistance provided for in terms of section 56 of the Disaster Management Act, 57 of 2002, in particular –
 If prevention or mitigation measures were taken or should have been take; and
 Whether the damage caused by the disaster is covered by adequate insurance, and if not, the reasons for the absence of inadequacy of insurance cover.


Compiled by Prof Dr DJ Lötz (BIur, LLB, LLM, LLD)
Brooklyn Court, Block A, 1st floor, 361 Veale Street, Brooklyn
Borchardt & Hansen Inc

Kouga Municipality Financial reporting and auditing

7.4       Requirements regarding financial reporting and auditing:

The annual financial statement of a municipality must disclose information on:

·         Any allocations received by the municipality from -

Ø      an organ of state in the national or provincial sphere of government; or

Ø      a municipal entity or another municipality;

·         Any allocations made by the municipality to -

Ø      a municipal entity or another municipality; or

Ø      any other organ of state;

·         How any allocations were spent, per vote, excluding allocations received by the municipality as its portion of the equitable share or where prescribed otherwise because of the nature of the allocation;

·         Whether the municipality has complied with the conditions of -

Ø      any allocations made to the municipality in terms of section 214(1)(c) of the Constitution; and

Ø      any allocations made to the municipality other than by national organs of state.

The notes to the annual financial statements of a municipality must include particulars of:

·         The salaries, allowances and benefits of political office-bearers and councillors of the municipality, whether financial or in kind, including a statement by the accounting officer whether or not those salaries, allowances and benefits are within the upper limits of the framework envisaged in section 219 of the Constitution;

·         Any arrears owed by individual councillors to the municipality, or a municipal entity under its sole or shared control, for rates or services and which at any time during relevant financial year were outstanding for more than 90 days, including the names of those councillors; and

·         The salaries, allowances and benefits of the municipal manager, the chief financial officer, every senior manager and such categories of other officials as may be prescribed.

 Compiled by Prof Dr DJ Lötz (BIur, LLB, LLM, LLD)

Brooklyn Court, Block A, 1st floor, 361 Veale Street, Brooklyn

Borchardt & Hansen Inc

Responsibilities of municipal officials re finance and municipal fiscal management

7.2       Responsibilities of mayors under the Municipal Finance Management Act

The mayor must take all reasonable steps to ensure that the municipality performs its constitutional and statutory functions within the limits of the municipality’s approved budget and must, within 30 days of the end of each quarter, submit a report to the council on the implementation of the budget and the financial state of affairs of the municipality (see the section 52(a)-(e) of the Municipal Finance Management Act).

If the municipality faces any serious financial problems, the mayor must:

·         Promptly respond to and initiate any remedial or corrective steps proposed by the accounting officer to deal with such problems, which may include -

Ø      steps to reduce spending when revenue is anticipated to be less than projected in the municipality’s approved budget;

Ø      the tabling of an adjustments budget;

Ø      steps in terms of chapter 13 Municipal Finance Management Act;

·         Alert the council and the MEC for local government in the province to those problems.

The mayor must ensure that any revisions of the service delivery and budget implementation plan are made public promptly (see section 54(2) and (3) of the Municipal Finance Management Act).

7.3       General responsibilities of municipal officials re finance and municipal fiscal management

According to the Municipal Finance Management Act, the municipal manager of a municipality is the accounting officer of the municipality for the purposes of the Act and, as accounting officer, must exercise the functions and powers assigned to an accounting officer in terms of the Act and provide guidance and advice on compliance with the Act to:

·         The political structures, political office-bearers and officials of the municipality; and

·         Any municipal entity under the sole or shared control of the municipality.

The accounting officer of a municipality is obligated to comply with certain fiduciary responsibilities. In this regard the officer must:

·         Act with fidelity, honesty, integrity and in the best interests of the municipality in managing its financial affairs;

·         Disclose to the municipal council and the mayor all material facts which are available to the accounting officer or reasonably discoverable and which in any way might influence the decisions or actions of the council or the mayor; and

·         Seek, within the sphere of influence of the accounting officer, to prevent any prejudice to the financial interests of the municipality.

An accounting officer may not act in a way that is inconsistent with the duties assigned to accounting officers of municipalities in terms of the Municipal Finance Management Act or use the position or privileges of, or confidential information obtained as, accounting officer for personal gain or to improperly benefit another person (see section 61(2)(a-(b) of the Municipal Finance Management Act). The accounting officer of a municipality is further also responsible for managing the financial administration of the municipality and must, for this purpose; take all reasonable steps to ensure that:

·         The resources of the municipality are used effectively, efficiently and economically;

·         Full and proper records of the financial affairs of the municipality are kept in accordance with any prescribed norms and standards;

·         The municipality has and maintains effective, efficient and transparent systems -

Ø      of financial and risk management and internal control; and

Ø      of internal audit operating in accordance with any prescribed norms and standards;

·         Unauthorised, irregular or fruitless and wasteful expenditure and other losses are prevented;

·         Disciplinary or, when appropriate, criminal proceedings are instituted against any official of the municipality who has allegedly committed an act of financial misconduct or an offence in terms of chapter 15 of the Municipal Finance Management Act.

The accounting officer is responsible for and must account for all bank accounts.  The accounting officer of a municipality is responsible also for the management of the revenue of the municipality. The accounting officer of a municipality is also responsible for the management of the financial expenditure of the municipality.

The accounting officer of a municipality is obligated to inform the provincial treasury in writing of any failure by the council of the municipality to adopt or implement a budget-related policy or a supply chain management policy referred to in section 111 of the Municipal Finance Management Act or any non-compliance by a political structure or office-bearer of the municipality with any such policy (see section 73(a) and (b) Municipal Finance Management Act).

In order to facilitate accountability, openness and public participation, the Municipal Finance Management Act requires that various aspects of information should be placed on each municipal website. In this regard, the accounting officer of a municipality must place on the website referred to in section 21A of the Municipal Systems Act the following documents of the municipality:

·         The annual and adjustments budgets and all budget-related documents;

·         All budge-related policies;

·         The annual report;

·         All performance agreements required in terms of section 57(1)(b) of the Municipal Systems Act;

·         All service delivery agreements;

·         All long-term borrowing contracts;

·         All supply chain management contracts above a prescribed value;

·         An information statement containing a list of assets over a prescribed value that have been disposed of in terms of section 14(2) or (4) during the previous quarter;

·         Contracts to which subsection (1) of section 33 apply, subject to subsection (3) of that section;

·         Public-private partnership agreements referred to in section 120;

·         All quarterly reports tabled in the council in terms of section 52(d); and

·         Any other documents that must be placed on the website in terms of this act or any other applicable legislation, or as may be prescribed.

The budget of a municipal entity must conform to the following requirements (see section 87(5)(a) to (e) of the Municipal Finance Management Act):

·         Be balanced;

·         Be consistent with any service delivery agreement or other agreement between the entity and the entity’s parent municipality;

·         Be within any limits determined by the entity’s parent municipality, including any limits on tariffs, revenue, expenditure and borrowing;

·         Include a multi-year business plan for the entity that –

Ø      sets key financial an non-financial performance objectives and measurement criteria as agreed with the parent municipality;

Ø      is consistent with the budget and integrated development plan of the entity’s parent municipality;

Ø      is consistent with any service delivery agreement or other agreement between the entity and the entity’s parent municipality; and

Ø      reflects actual and potential liabilities and commitments, including particulars of any proposed borrowing of money during the period to which the plan relates; and

·         Otherwise comply with the requirements of section 17(1) and (2) of the Municipal Finance Management Act to the extent that such requirements can reasonably be applied to the entity.

 Compiled by Prof Dr DJ Lötz (BIur, LLB, LLM, LLD)

Brooklyn Court, Block A, 1st floor, 361 Veale Street, Brooklyn

Borchardt & Hansen Inc

Municipal Budgets

7.1       Municipal budgets:

Immediately after an annual budget is tabled in a municipal council, the accounting officer of the municipality must:

·         In accordance with chapter 4 of the Local Government: Municipal Systems Act –

Ø      make public the annual budget and the documents referred to in section 17(3); and

Ø      invite the local community to submit representations in connection with the budget; and

·         Submit the annual budget –

Ø      in both printed and electronic formats to the National Treasury and the relevant provincial treasury; and

Ø      in either format to any prescribed national or provincial organs of state and to other municipalities by the budget.

In an effort to further accountability and public participation, the Municipal Finance Management Act, 56 of 2003 requires that when the annual budget has been tabled, the municipal council must consider any views of:

·         The local community and

·         The National Treasury, the relevant provincial and any provincial or national organs of state or municipalities which made submissions on the budget.

After consideration all budget submissions, the council must give the mayor an opportunity:

·         To respond to the submissions; and

·         If necessary, to revise the budget and table amendments for consideration by the council.

Without limiting liability in terms of the common law or other legislation, the Municipal Finance Management Act specifically provides for personal accountability and liability over both political office bearers and officials of a municipality that work with financial matters. The Municipal Finance Management Act states that:

·         A political office-bearer of a municipality is liable for unauthorized expenditure if that office-bearer knowingly or after having been advised by the accounting officer of the municipality that the expenditure is likely to result in unauthorized expenditure, instructed an official of the municipality to incur the expenditure;

·         The accounting officer is liable for unauthorized expenditure deliberately or negligently incurred by the accounting officer;

·         Any political office-bearer or official of a municipality who deliberately or negligently committed, made or authorised an irregular expenditure is liable for that expenditure; or

·         Any political office-bearer or official of a municipality who deliberately or negligently made or authorised a fruitless and wasteful expenditure is liable for that expenditure.

A municipality must recover unauthorized, irregular or fruitless and wasteful expenditure from the person liable for that expenditure.

It should be noted that the writing off of any unauthorized, irregular or fruitless and wasteful expenditure as irrecoverable is no excuse in criminal or disciplinary proceedings against a person charged with the commission of an offence or a breach of the Municipal Finance Management Act relating to such unauthorised, irregular or fruitless and wasteful expenditure. The accounting officer is further obligated to report to the South African Police Service.

All contracts that impose a financial obligation on a municipality:

·         Must be made available in their entirety to the municipal council; and

·         May not be withheld from public scrutiny, except as provided for in terms of the Promotion of Access to Information Act 2 of 2000 read together with the MFMA section 33(3)-(4) of the Municipal Finance Management Act.

 Compiled by Prof Dr DJ Lötz (BIur, LLB, LLM, LLD)

Brooklyn Court, Block A, 1st floor, 361 Veale Street, Brooklyn

Borchardt & Hansen Inc

Basic function and activities of Kouga Municipality

6          What constitute municipal services and service delivery, including the basic function and activities of Kouga Municipality?

6.1       Basic principles and approaches on service delivery

In order to achieve optimal service delivery the Kouga Municipality have to apply the following compulsory principles:

·        Accessibility - all communities should have access to at least a minimum level of service. This is not a goal, but a constitutional obligation.

·         Affordability - in order to enhance quality of life, municipalities should strive to make services as affordable as possible.

·         Quality - services should be suitable for their purpose, should be timeously provided, should be safe and should be accessible on a continuous basis.

·         Accountability - local governments are founded, inter alia, on the values of a democratic government which includes principles of accountability and responsiveness (see section 1(d) of the Constitution).

·         Sustainability - the provision of services to local communities have to be in terms of section 152(1)(b) of the Constitution in a sustainable manner.

·         Promotion of the new constitutional values - it is not only a legal prerequisite for all municipalities to comply and adhere to the new constitutional values and requirements; it is also an essential recipe for all local governments to achieve optimal sufficiency and support.

·         Establishment of partnerships with community-base organisations and non-government organisations - partnerships with community-based organisations (CBOs), like the Oyster Bay Ratepayers Association and non-governmental organisations (NGOs) are inevitable to effective local community involvement in order to stimulate good local governance. Such organisations (like the Oyster Bay Ratepayers Association) have particular skills that could enhance and facilitate new development initiatives and set an effective intermediary in local initiatives.

6.2       Basic administrative capacities to enhance Kouga Municipality’s          development

In order to play and ensure a developmental role effectively and to improve performance in respect of service delivery, Kouga Municipality need to develop at least the following capacities:

·       Become more strategic in their orientation and be open and flexible to new or unforeseen demands.

·       Maximise integrated capacity

·      Become much more community orientated and develop mechanisms to interact with community groups to identify service needs and priorities. Without the capacity to strategise, integrate and to meet face to face with non-municipal groups, the Kouga Municipality is unlikely to be sustainable for the future.

6.3       Legislative requirements regarding municipal services and service provision

Section 152 (1) (a) to (e) of the Constitution states that the Kouga Municipality have to achieve the following objectives:

·       Democratic and accountable government;

·       Provision of services in a sustainable manner;

·       Social and economic development;

·       Safe and healthy environments;

·       Community involvement in local government matters.

Section 73(2)(a) to (e) of the Local Government: Municipal Systems Act, 32 of 2000 requires that Municipal services must be:

·     Equitable and accessible;

·     Provided in a manner that is conducive to prudent, economic, efficient and effective use of available resources and the improvement of standards of quality over time;

·     Financially sustainable;

·     Environmentally sustainable;

·     Regularly reviewed with a view to upgrading, extension and improvement.

Section 1 of the of the Local Government: Municipal Systems Act provides that ‘basic municipal services’ means a municipal service that is necessary to ensure an acceptable and real quality of life and that, if not provided, would endanger public health or safety or the environment.

Taking the level of service delivery to the residents of Oyster Bay into account, it is doubtful whether the Kouga Municipality complies with the above compulsory statutory provisions

Apart from the basic duties and requirements on local governments in respect of the municipal services, the Local Government: Municipal Systems Act further determines that all municipal councils must add or implement a tariff policy on the levying of fees for municipal services that are provided by the municipality. In terms of section 74(2)(a) to (i) of the Local Government: Municipal Systems Act such tariff policy has to comply with the following minimum requirements:

·         Users of municipal services should be treated equitably in the application of tariffs;

·         The amount individual users pay for services should generally be in proportion to their ability for that service;

·         Poor households must have access to at least basic services;

·         The tariff policy must reflect the costs reasonably associate with rendering the service, in providing capital, operating, maintenance, administration and replacement costs, and also in the charges;

·         Provision may be made in appropriate circumstances for a surcharge on the tariff for a particular service;

·         A tariff policy may lawfully differentiate between various category service users as long as such differentiation does not amount to unfair discrimination (see section 74(3) in terms of section 74(2)(a) to (i) Local Government: Municipal Systems Act).

Again it is doubtful whether the Kouga Municipality complies with the above statutory requirements.

Compiled by Prof Dr DJ Lötz (BIur, LLB, LLM, LLD)

Brooklyn Court, Block A, 1st floor, 361 Veale Street, Brooklyn

Borchardt & Hansen Inc