Evaluating the sustainability of a municipality's merger and its impact on sevice delivery.

Abstract

Purpose and Research Objectives: This study investigates the sustainability and service deliveryimpact of the Alfred Duma Municipality merger, a union of Indaka and Ladysmith municipalities.It explores post-merger organizational, financial, and service delivery dynamics, with specific emphasis on the Integrated Development Plan (IDP) and its revenue-generating projects. Methodology: Utilizing a qualitative approach, the research included in-depth interviews and a comprehensive review of Alfred Duma LM's census statistics, financial indicators, and service delivery records over five years. The study's approach enabled a detailed examination of the merger's outcomes. Key Findings: The research revealed mixed results post-merger, with slight population growth but persistent service delivery challenges. Although there was a growth in revenue, this did not directly translate to improved services. The financial health of Alfred Duma LM was closely scrutinized, revealing complexities in revenue management and challenges in maintaining financial stability. Analysis and Interpretation: Findings suggest that while the merger led to some financial improvements, these gains did not proportionately enhance service delivery. The study highlights the importance of efficient asset, revenue, liability, cash flow management, and maintaining a balance between profitability and liquidity. Contribution to Knowledge: This study adds to the understanding of municipal mergers in South Africa, particularly regarding financial sustainability and service delivery. It underscores the complexities of merging diverse municipalities and the pivotal role of strategic financial management in such unions. Critical Assessment: Limitations include the focus on a single municipality and a qualitative approach that may not fully capture the quantitative aspects of financial and service delivery performance. Recommendations and Future Research: Recommendations include enhanced strategic planning and financial management to improve service delivery. Future research could explore comparative studies across multiple merged municipalities for broader insights.