THE provincial and local government department has invested R252m in the current financial year to support the revenue collection enhancement programme for SA's municipalities.

The aim is to recoup the R24bn owed by defaulters as nonpayment of services puts a strain on municipal financial resources.

This has also led to difficulties in the provision of services and maintenance of infrastructure.

The department's directorgeneral, Lindiwe MsenganaNdlela, said yesterday that revenue enhancement would focus on debt collection and a support programme to ensure that municipalities had better treasury departments and reliable billing systems.

In an attempt to bolster municipal finances, government also introduced three-year fiscal allocations to bring stability into the system and would introduce property rates to make sure municipalities had a decent revenue base. Msengana-Ndlela said government was not intending to write off the R24bn debt, although municipalities could do so within certain circumstances.

The department would also table an Intergovernmental Relations Bill in Parliament before the end of this current financial year.

The bill is aimed at establishing more stable intergovernmental relations and dispute resolution mechanisms.

It would seek to eliminate unfunded mandates to municipalities and establish a clear framework for interaction.

Msengana-Ndlela said that the bill would also focus on provincial support and the role of premiers when it came to supporting local government.

"We need to confirm that provinces have a role to play (in light of recent debates as to whether SA needed them) in this system. At least, in the next 10 to 20 years," she said.

May 30 2003 07:21:06:000AM Xolani Xundu Business Day 1st Edition