Evaluation of non-payment for municipal services at Magareng Municipality, Northern Cape.

Abstract

The fundamental objective of the public sector is rendering basic services to communities. Local government is key to delivery, having direct interactions with communities for effective and efficient service delivery. Municipalities have powers to charge customers for services rendered. Customers have a responsibility to pay for such services. Several sectors of consumers choose not to pay for municipal services. Magareng Municipality is no exception to this phenomenon. The study provides insight into why consumers in the selected Municipality are not paying for services. Results were categorised into four broad aspects, governance structures, emergence of Ratepayers‟ Associations, entrenched culture of non-payment, and level of indigents with billing-related challenges. The study theorised the Systems Theory, Contingency Theory of Leadership, and Social Contract Theory. Interviews were conducted qualitatively with selected municipal officials, consumers and other stakeholders through semi-structured questions. Reasons for non-payment included culture of entitlement, lack of trust in services rendered, lack of adequate processes to engage consumers on dissatisfaction about municipal services, absence of query resolution mechanisms, failure by the municipality to properly implement its credit policy and unaffordability. Issues of failure to collect meter readings resulted in use of estimates and unreliable billing systems. Affordability worsened during the COVID-19 pandemic, as most businesses closed, exacerbating unemployment levels. Perceived lack of engaging consumers was identified as one main cause of service delivery protests. The study could not provide much clarity on the effect of Ratepayers Associations. For Magareng Municipality to improve rates collection, it should appoint a task team to investigate and resolve all unallocated deposits, implement resolution mechanisms and processes to address credit control policy and increase accessibility. Communities need to be involved as participation is a critical process in local government. Such measures are likely to improve revenue collection and enhance service delivery, and hopefully minimise service delivery protests.