Coalition effects on financial and service delivery performance in metropolitan municipalities in Gauteng

Abstract

Background: The South African electoral system does not favour a winner-takes-all situation. It is designed for a possible political coalition government on the basis of an electoral outcome below the 50+1 at the national, provincial and local government levels. Thus, the 2021 Local Government elections delivered nine hung municipal councils in Gauteng province. This implies that the sphere of local government has now entered an electoral epoch shaped by a multi-party system without an outright majority for a majority-led municipal council in at least 70 municipal councils throughout the country.

Aim: The objective of this study was to evaluate the financial and service delivery performance of the metropolitan municipalities of Gauteng province.

Methods: The study used a qualitative research approach in the form of secondary data analysis, in which documentary and literature reviews were conducted to answer the research question using financial ratio analysis to examine the financial performance of metropolitan municipalities governed by political coalitions.

Results: The study found that the revenue of these metropolitan areas under political coalitions is not sustainable. Additionally, the expenditure is not credible, and the budgets do not respond to the needs of the poor. Furthermore, budgets are not passed in time, which compromises and deteriorates service delivery.

Conclusion: Political parties that are involved in political coalitions in these metropolitan municipalities do not adhere to the political coalition agreements, and this leads to failing governance in these municipalities. The study makes a valuable contribution by suggesting an integrated approach to financial and service delivery performance.

Contribution: This study makes several salient contributions by suggesting an integrated approach of financial performance and service delivery in metropolitan municipalities arising from the advent of coalitions in these municipalities.