Operation Vulindlela magic trick: Turning municipal debt into development?

1 min read
Operation Vulindlela ANC Parks Tau
Image Twitter/X/Parks Tau

The African National Congress (ANC) announced the next phase of Operation Vulindlela, focusing on addressing the mounting challenges faced by South African municipalities.

This development comes amid growing concerns over local government debt and service delivery issues. The details emerged following a three-day meeting of the ANC’s National Executive Committee.

Operation Vulindlela 2.0

Operation Vulindlela is that fancy initiative cooked up by President Ramaphosa’s office and the Treasury back in 2020, and is now set to pivot its attention to municipal affairs.

Its first round was all about ticking boxes digital spectrum auctions and private electricity generation. Phase two is now going municipal.

Parks Tau, head of the ANC‘s local government subcommittee, emphasised the urgency of the situation, stating, “We need an overarching solution to the debt crisis in our local government system.”

With municipalities owing Eskom a cool R82.3 billion – double what it was in 2021 – I’d say we need more than just an “overarching solution”. We need a miracle!

Repurposing grants and subsidiaries

The ANC’s strategy includes a plan to “repurpose” Treasury grants allocated to municipalities.

Tau elaborated, “We are going to look at all the grants and subsidiaries that go to municipalities and repurpose them to address service challenges.”

This approach aims to tackle the issue of underutilized funds, as Tau noted “a lot of money that goes to the local government goes back to the Treasury because of under-expenditure, but your services are challenged.”

Operation Vulindlela vs R21.3b debt

While the initiative shows promise, it faces significant hurdles. The scale of municipal debt in South Africa, including R21.3 billion owed to water boards, poses a daunting challenge.

Moreover, the success of this new phase will depend on effective implementation – a factor that has been problematic in previous local government reform efforts.

I’m all for trying to fix our municipal madness. But forgive me if I’m not jumping for joy just yet. After years of watching our towns and cities crumble faster than a stale koeksister, we definitely need… something.

As Operation Vulindlela enters this new phase, South Africans will be watching closely to see if it can deliver tangible improvements in municipal governance and service delivery.

The outcome of this initiative could have far-reaching implications for the quality of life in towns and cities across the nation.

author avatar
Isabella Duncan-Botha
Previous Story

AVs in SA? A glimpse into our e-hailing future from China’s present

Next Story

Construction mafia: How SA plans to demolish these concrete cowboys

Latest from SA News