Yesterday, the Portfolio Committee on Energy received presentations from the Department of Cooperative Governance and Traditional Affairs (COGTA) as well as the role of the Municipal Infrastructure Support Agent (MISA) in the provision of free basic electricity and alternative energy as well as energy infrastructure at municipal level.
Chairperson of the committee, Mr Sisa Njikelana welcomed the earnest and honest attempts from the stakeholders to remedy the numerous challenges facing Free Basic Services (FBS), especially free basic electricity. He stressed the importance of implementing FBS, which include both free basic electricity and free basic alternative energy, in order to improve the lives of the indigent.
According to COGTA, government announced a statement of intent in respect of the provision of Free Basic Services in 2000.The framework provides the foundation upon which municipalities can build their own indigent policies and by-laws in order to fulfil their responsibilities.
The indigency subsidy enables municipalities to provide basic services to poor households. The basic services component provides an allocation for every poor household in a municipality to cover the cost of providing a package of free basic water, sanitation, and energy and refuse removal.
Mr Chris Malehase from COGTA stressed that the indigent need to be brought back into mainstream economy and graduating out of indigent registers is the ultimate goal. Regarding achievements by COGTA, Mr Malehase highlighted the National Policy Framework for municipal indigent policy and a monitoring and reporting system for FBS as notable achievements in going forward with FBS.
Although many achievements were mentioned, various challenges facing FBS were also noted. The dilemma of defining who can be considered to be indigent is difficult with no agreed poverty line, the onus remains with the municipalities to define who is to be considered indigent.
Members of the committee questioned whether checks and balances were in place to ensure that those who find employment be erased from the list and do not continue to benefit illegally from FBS. Other challenges noted include monitoring delivery and the impact thereof, verification of beneficiary data and municipal cost limitations.
“It is commendable to see that COGTA has clearly been honestly grappling with the various challenges facing successful implementation of FBS, but we acknowledge that FBS is also work in progress,” said Mr Njikelana. Furthermore, he appreciated the need to address free basic electricity and alternative energy in the context of FBS.
According to COGTA, after restructuring in 2009, the FBS programme collapsed resulting in major delays and backdrop. Members then expressed concerns about the consequences to the indigent families affected due to such collapse. Mr Malehase said the consequences for the programme were immense, and this, coupled with poor FBS facilitation by provinces and municipalities were to blame for the poor outcomes of the programme.
He added that a number of municipalities did not recognise FBS and so, they more often than not, dealt with it as a last delivery issue. Responding to what happens to the equitable share if the programme has collapsed, and about municipalities diverting it to other projects or programmes, Mr Malehase said the utilisation of equitable share was solely dependent on the municipalities. He, however, highlighted a policy vacuum that needed to be addressed with regards to utilisation of equitable share by municipalities.
MISA shed some light on their key support programmes which aims to fulfil their mandate of rendering technical advice and support to municipalities and to build the capacity of municipalities in order to undertake effective planning, delivery and management.
One of the programmes mentioned include the Capacity Development Programme which is implemented through apprenticeships, young professionals, experiential learning and rotating key municipal officials to the private sector.
In conclusion, Mr Njikelana said: “While we wanted to look at free basic electricity and free basic alternative electricity, one thing we’ve learned is that an integrated approach is needed when it comes to the municipal level because there many players that get incorporated in the programme.”
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