OUTA says local government reform must stop making residents pay for municipal failure

The Organisation Undoing Tax Abuse (OUTA) has submitted its final comments on governments Reviewed Draft White Paper on Local Government, warning that South Africa does not suffer from a shortage of plans to fix municipalities. It suffers from a shortage of accountability. 

While OUTA welcomes many of the reforms in the White Paper, it says the final version must focus less on diagnosing municipal failure and more on ensuring there are consequences for those who cause it.  

“South Africans are tired of paying more and receiving less,” says Julius Kleynhans, OUTA Executive Manager. “The real test of this White Paper is whether it makes municipal failure harder and municipal success easier.”

OUTA says many of the problems residents face every day, including water outages, electricity disruptions, collapsing roads, billing disputes, waste collection failures, and escalating tariffs, can often be traced back to poor leadership, political interference, weak oversight, and a lack of consequences for misconduct.

One of OUTA’s key recommendations is the introduction of a compulsory national councillor readiness programme before local government elections.

“Municipalities cannot afford five years of on-the-job learning at the public's expense,” says Kleynhans. “Councillors do not simply represent communities. They make decisions that directly affect service delivery, municipal finances, and residents’ quality of life.”

OUTA says stronger competency requirements should also apply to mayors, deputy mayors, speakers, chief whips, MMCs, Municipal Public Accounts (MPAC) chairs, and councillors serving in critical oversight positions. 

The organisation is equally concerned about what it describes as a serious accountability gap in local government.

Municipal managers often face legal, disciplinary, and even criminal consequences when things go wrong. At the same time, political office-bearers who interfere in appointments, procurement processes, investigations, or financial decisions frequently evade meaningful accountability.

“Political power must carry accountability,” says Kleynhans. “Those who interfere in municipal administration or contribute to financial collapse cannot simply walk away while officials carry the consequences.” 

OUTA is calling for stronger sanctions against political office bearers who abuse their authority, including removal from office, personal liability where their conduct causes financial losses, referral for criminal investigation where corruption is suspected, and public reporting on disciplinary outcomes. 

The organisation also argues that residents should not be expected to fund municipal inefficiency through ever-increasing tariffs and fixed charges.

Many municipalities continue to lose a significant amount of revenue through corruption, poor maintenance, water losses, electricity losses, and weak financial management. Yet the response is often to increase the burden on paying residents and businesses.

“Consumers should not be expected to absorb the cost of failure,” says Kleynhans. “Tariffs should reflect efficient service delivery, not corruption, waste, or mismanagement.” 

OUTA is also calling for greater procurement transparency, including the public disclosure or tender information, contract awards, contract performance, and beneficial ownership details through a centralised municipal procurement portal.

The organisation believes the White Paper presents one of the most significant opportunities in decades to reshape the future of local government. With local elections approaching and many municipalities facing deep governance, financial, and service delivery crises, South Africa cannot afford to get this reform process wrong.

OUTA says the White Paper is as important to the future of municipalities as the upcoming local government elections themselves. Elections determine who governs, but the White Paper will help determine the rules, accountability mechanisms, and standards under which they govern.

“A municipality cannot be fixed by leadership alone if the policy framework is weak, and strong policy means little without capable leadership,” says Kleynhans. “South Africa needs both.”

OUTA warns that a weak final White Paper could entrench many of the governance failures that have contributed to municipal decline, while a strong and enforceable framework could help create the conditions for better governance regardless of which political party assumes office after the elections.

“The next election will shape municipal leadership for the next five years,” says Kleynhans. “This White Paper will shape how local government functions for years beyond that. Getting the content right is therefore critical if South Africa is serious about rebuilding municipalities that are ethical, capable, financially sustainable, and worthy of public trust.”

Kleynhans also cautioned that implementation of the White Paper must not become trapped in lengthy reform processes while municipalities continue to deteriorate. Communities facing collapsing infrastructure, rising tariffs, and declining services need practical improvements, accountability, and measurable progress as a matter of urgency.​

Supporting Documents

• A soundclip from Julius Kleynhas, OUTA Executive Manager, is available here in English and here in Afrikaans. 
• Read our submission here