Vicki NottVicki Nott

Built Environment Support Built Environment Support GroupGroup

September 2007September 2007

‘SEEN BUT NOT HEARD‘SEEN BUT NOT HEARD ’’

A rapid assessment of the A rapid assessment of the Indigent Support Policy in Indigent Support Policy in

Msunduzi Municipality, Msunduzi Municipality, KwaZulu NatalKwaZulu Natal

Workshop AimWorkshop Aim

• A presentation of the results of a A presentation of the results of a research study done by BESG on research study done by BESG on Msunduzi Municipality’s Indigent Msunduzi Municipality’s Indigent Support Policy for rates and service Support Policy for rates and service charges reliefcharges relief

• Plenary session – discussion on Plenary session – discussion on research findingsresearch findings

FUNDERSFUNDERS

• This research was funded by the This research was funded by the Good Governance Learning Network Good Governance Learning Network (GGLN) and The Child Advocacy (GGLN) and The Child Advocacy Project (CAP)Project (CAP)

FUNDERSFUNDERS

• BESG acknowledges the generous support BESG acknowledges the generous support of the Ford Foundation in funding its of the Ford Foundation in funding its programme of promoting good programme of promoting good governance and deepening democracy, governance and deepening democracy, which inspired this research study. which inspired this research study.

• BESG thanks the Office of Strategic BESG thanks the Office of Strategic Analysis and Research of the Msunduzi Analysis and Research of the Msunduzi Municipality,Municipality, for hosting this presentation. for hosting this presentation.

Underlying PrinciplesUnderlying Principles

• The South African Government Communication The South African Government Communication and Information Services define indigent free and Information Services define indigent free basic services as: basic services as:

““Services provided by Government at no Services provided by Government at no charge to poor households. The services charge to poor households. The services include water, electricity, sanitation, and include water, electricity, sanitation, and waste removal. These services are provided waste removal. These services are provided by municipalities and include a minimum by municipalities and include a minimum amount of electricity, water and sanitation amount of electricity, water and sanitation that is sufficient to cater for the basic needs that is sufficient to cater for the basic needs of a poor household.”of a poor household.” (SA Government (SA Government Services, 2007).Services, 2007).

Underlying PrinciplesUnderlying Principles

• The right to access clean water and adequate sanitation was The right to access clean water and adequate sanitation was included in the new Constitution of South Africa in 1996.included in the new Constitution of South Africa in 1996.

• The provision of water and electricity services have The provision of water and electricity services have increasingly been devolved to local municipalities.increasingly been devolved to local municipalities.

• The term indigent, in the South African Context, refers to poor The term indigent, in the South African Context, refers to poor people who are entitled to municipal services support. people who are entitled to municipal services support.

• 2001 - The Department of Water Affairs and Forestry (DWAF) 2001 - The Department of Water Affairs and Forestry (DWAF) declared the right to a basic supply of free water. declared the right to a basic supply of free water.

• 2004 - Msunduzi Municipality formulated an indigent water 2004 - Msunduzi Municipality formulated an indigent water policy.policy.

• 2005 – Implementation of a pilot free electricity service.2005 – Implementation of a pilot free electricity service.• 2006 – Municipality introduced a moratorium on action for 2006 – Municipality introduced a moratorium on action for

rates debt for child headed households; and extended rebates rates debt for child headed households; and extended rebates to flat dwellers.to flat dwellers.

National policy guidelinesNational policy guidelines• Free Basic Water Free Basic Water • 6kl of free water per household/month or 200 litres per 6kl of free water per household/month or 200 litres per

household/dayhousehold/day• Based on World Health Organisation (WHO) guideline of 25 Based on World Health Organisation (WHO) guideline of 25

litres per person per day living in an eight-member litres per person per day living in an eight-member household.household.

• Free basic electricityFree basic electricity• Indigent households are entitled to free basic electricity of Indigent households are entitled to free basic electricity of 50 kilo-Watt hours (kWh)/month.50 kilo-Watt hours (kWh)/month.• Free basic Sanitation and Refuse Removal Free basic Sanitation and Refuse Removal • DWAF are currently developing a framework for the DWAF are currently developing a framework for the

provision of free basic sanitation.provision of free basic sanitation.• The Department of Environmental Affairs (DEAT) is in the The Department of Environmental Affairs (DEAT) is in the

process of developing a framework for the provision of free process of developing a framework for the provision of free basic refuse removal.basic refuse removal.

Msunduzi Municipality’s Indigent PolicyMsunduzi Municipality’s Indigent PolicyLevel 1Level 1

• Automatic qualification as an indigentAutomatic qualification as an indigent

• The criterion to qualify automatically for the support The criterion to qualify automatically for the support requires house and land value to be under R30 000.requires house and land value to be under R30 000.

• Automatic qualification entitles a beneficiary to receive a Automatic qualification entitles a beneficiary to receive a free 20 Amp electrical supply and 50kWh electricity free 20 Amp electrical supply and 50kWh electricity consumption per month; consumption per month;

• Free 6kl water, with the balance at normal tariff; Free 6kl water, with the balance at normal tariff; • Free sewerage; Free sewerage; • Free refuse;Free refuse;• Full exemption from ratesFull exemption from rates

Msunduzi Municipality’s Indigent Msunduzi Municipality’s Indigent PolicyPolicy

Level 2Level 2• On application – house and land value On application – house and land value

between R30001 and R40000 – between R30001 and R40000 – subject to a limit of 20 Amp and a subject to a limit of 20 Amp and a water restriction device.water restriction device.

• The package provides for a 20 Amp electricity supply at a The package provides for a 20 Amp electricity supply at a reduced rate; free 50kWh electricity with the balance at reduced rate; free 50kWh electricity with the balance at normal tariff; normal tariff;

• Free 6kl water the next 7-12 kl at reduced rate, and any Free 6kl water the next 7-12 kl at reduced rate, and any consumption in excess of 12 kl at the normal rate; consumption in excess of 12 kl at the normal rate;

• Reduced tariffs for sewerage and refuse; and Reduced tariffs for sewerage and refuse; and

• Full rates exemption.Full rates exemption.

Msunduzi Municipality’s Indigent PolicyMsunduzi Municipality’s Indigent PolicyLevel 3Level 3

• On Application as an indigent - house and On Application as an indigent - house and land value over R40 001– subject to a limit land value over R40 001– subject to a limit of 20 Amp and a water restriction device.”of 20 Amp and a water restriction device.”

• Subject to maximum income of R2136 per month.Subject to maximum income of R2136 per month.• Household entitled to 20 Amp electricity supply at reduced Household entitled to 20 Amp electricity supply at reduced

rate; free 50KWh electricity – balance at normal tariff.rate; free 50KWh electricity – balance at normal tariff.• Free 6kl water, the next 7-12 kl at reduced rate, thereafter Free 6kl water, the next 7-12 kl at reduced rate, thereafter

normal rate.normal rate.• Reduced tariffs for sewerage and refuseReduced tariffs for sewerage and refuse• A rebate of 40% rates if income less than R1740 or rebate A rebate of 40% rates if income less than R1740 or rebate

of 33.3% if monthly income between R1740-R2136. of 33.3% if monthly income between R1740-R2136.

STATEMENT OF THE PROBLEMSTATEMENT OF THE PROBLEM

• Accessibility and application of the Accessibility and application of the policy are problematic.policy are problematic.

• Investigation of Ward Councillors’ Investigation of Ward Councillors’ roles in disseminating the free basic roles in disseminating the free basic support policy.support policy.

• Appropriateness of defining indigent Appropriateness of defining indigent beneficiaries in relation to property beneficiaries in relation to property values.values.

Research AimResearch Aim• Who is indigent? The policy does not define the term, and is Who is indigent? The policy does not define the term, and is

implied in relation firstly to property value, and secondly to implied in relation firstly to property value, and secondly to household income.household income.

• How and where is the policy disseminated?How and where is the policy disseminated?

• How aware are Ward Councillors of the policy, and how How aware are Ward Councillors of the policy, and how effective are they in disseminating the policy and referring effective are they in disseminating the policy and referring qualifying applicants? qualifying applicants?

• What consumer education is provided on services, What consumer education is provided on services, consumption, and billing?consumption, and billing?

• How user-friendly is the sliding scale policy on rates How user-friendly is the sliding scale policy on rates concessions; and how will it be affected by the new concessions; and how will it be affected by the new Municipal Property Rates Act (Act 6 of 2004), which requires Municipal Property Rates Act (Act 6 of 2004), which requires individual, market-related property rates assessments?individual, market-related property rates assessments?

Methodology Methodology • A focus group discussion was held with three officials from A focus group discussion was held with three officials from

the Finance Department, and individual interviews were the Finance Department, and individual interviews were held with senior officials from the Water Department and held with senior officials from the Water Department and Electricity Department.Electricity Department.

• Five Ward Councillors, representing areas where there Five Ward Councillors, representing areas where there would be a high prevalence of indigent households. were would be a high prevalence of indigent households. were interviewed. interviewed.

• Physical inspections of municipal venues, deemed Physical inspections of municipal venues, deemed appropriate for disseminating indigent support information, appropriate for disseminating indigent support information, were conducted.were conducted.

• A quantitative survey was done in five low-income areas in A quantitative survey was done in five low-income areas in Msunduzi Municipality. The survey included 55 residents Msunduzi Municipality. The survey included 55 residents from Ashdown, Imbali Unit 13, Eastwood, France, and Oribi. from Ashdown, Imbali Unit 13, Eastwood, France, and Oribi.

Limitations to the studyLimitations to the study

• Funding and time constraints prevented a Funding and time constraints prevented a more comprehensive study in a broader more comprehensive study in a broader context.context.

• Difficulty in locating a municipal official Difficulty in locating a municipal official responsible for managing and supervising the responsible for managing and supervising the dissemination of the Indigent Support Policy.dissemination of the Indigent Support Policy.

• Ward Councillors’ lack of response (had to re-Ward Councillors’ lack of response (had to re-sample).sample).

• Reluctance from Eastwood residents to Reluctance from Eastwood residents to participate in the survey.participate in the survey.

Results of the interviews with Results of the interviews with Msunduzi Municipal OfficialsMsunduzi Municipal Officials

• Finance Department is custodian of the policy.Finance Department is custodian of the policy.

• Lack of inter-departmental co-operation and Lack of inter-departmental co-operation and communication.communication.

• No Consumer educational programmes in place.No Consumer educational programmes in place.

• Suspension of water services to households exceeding free Suspension of water services to households exceeding free allocation.allocation.

• Free basic electricity not reaching indigent people as Free basic electricity not reaching indigent people as intended.intended.

• Free basic electricity allocation too low.Free basic electricity allocation too low.

• Indigent support depends largely on Municipality's financial Indigent support depends largely on Municipality's financial status.status.

Recommendations Recommendations made by Municipal Officials and Ward made by Municipal Officials and Ward

Councillors on improving disseminationCouncillors on improving dissemination

• Significant barrier in communicating the policy.Significant barrier in communicating the policy.• Dissemination methods are through Area Based Dissemination methods are through Area Based

Management, Izimbizo, Umpithi News, pamphlets, and local Management, Izimbizo, Umpithi News, pamphlets, and local press: Gap between theory and actuality/ practice.press: Gap between theory and actuality/ practice.

• The Water and Electricity Departments suggested:The Water and Electricity Departments suggested:• Provision of an effective customer call centre system.Provision of an effective customer call centre system.• National, provincial and local media adverts and public National, provincial and local media adverts and public

awareness campaigns.awareness campaigns.• Ongoing workshops to equip Councillors.Ongoing workshops to equip Councillors.• Road shows to inform the public on policy conditions and Road shows to inform the public on policy conditions and

application procedures.application procedures.

Results of interviews with Ward Results of interviews with Ward CouncillorsCouncillors

• Some degree of inaccuracy in interpretation of the policy.Some degree of inaccuracy in interpretation of the policy.• Good understanding of application process.Good understanding of application process.• Improved training of Ward Councillors required. Improved training of Ward Councillors required. • Increase dissemination efforts necessaryIncrease dissemination efforts necessary• Suggestions by Ward CouncillorsSuggestions by Ward Councillors Regular workshops for communityRegular workshops for community Improve municipal officials levels of efficiency and Improve municipal officials levels of efficiency and

knowledgeknowledge Door-to-door awareness campaignsDoor-to-door awareness campaigns Educational campaigns through the mediaEducational campaigns through the media Poster displays in municipal buildingsPoster displays in municipal buildings• Policy adjustments needed to serve more poor people.Policy adjustments needed to serve more poor people.• Lack of cooperation and communication between Lack of cooperation and communication between

stakeholders.stakeholders.

Beneficiary survey resultsBeneficiary survey resultsSurvey AreaSurvey Area

AreaArea Assumed value4Assumed value4 nono PercenPercentt

Unit 1-3 PhasesUnit 1-3 Phases <R30000<R30000 77 13.513.5

AshdownAshdown >R40000>R40000 1111 21.221.2

EastwoodEastwood >R40000>R40000 33 5.85.8

Eastwood (CHH)+Eastwood (CHH)+ >R40000>R40000 11 1.91.9

FranceFrance <R30000<R30000 1414 26.926.9

Imbali Unit 13/formal(old stock)Imbali Unit 13/formal(old stock) >R40000>R40000 11 1.91.9

OribiOribi >R40000>R40000 1515 28.828.8

TotalTotal 5252 100100

Policy AwarenessPolicy Awareness

Not heardNot heard 3434 65.4%65.4%

RadioRadio 77 13.5%13.5%

Word of mouthWord of mouth 44 7.7%7.7%

CouncillorCouncillor 33 5.8%5.8%

Municipality +otherMunicipality +other 11 1.9%1.9%

PamphletPamphlet 11 1.9%1.9%

No responseNo response 22 3.8%3.8%

TotalTotal 5252 100%100%

Free basic support - QualificationFree basic support - QualificationAutomatic qualificationAutomatic qualification %%

YESYES 2525 48.1%48.1%

NONO 2626 50%50%

NO RESPONSENO RESPONSE 11 1.9%1.9%

TOTALTOTAL 5252 100%100%

Pay for waterPay for water %%

YESYES 99 17.317.3

NONO 4343 82.782.7

TOTALTOTAL 5252 100100

Pay for Pay for electricityelectricity

YESYES 3636 69.69.22

NONO 55 9.69.6

PREPAIDPREPAID 1111 21.21.22

TOTALTOTAL 5252 100100

Consumer complaintsConsumer complaints

• No or little information given to the public regarding free basic No or little information given to the public regarding free basic support.support.

• Councillor either not available, or people do not know where to find Councillor either not available, or people do not know where to find their Ward Councillor.their Ward Councillor.

• Need clarity on the application process.Need clarity on the application process.• Applied for free basic support but never heard from municipality.Applied for free basic support but never heard from municipality.• Complaints about the high cost of electricity and electrical black-Complaints about the high cost of electricity and electrical black-

outs.outs.• The need for reduced or free electricity.The need for reduced or free electricity.• Water services not responding to reported meter leaks.Water services not responding to reported meter leaks.• need for municipal or government support in acquiring their own need for municipal or government support in acquiring their own

homehome• High crime and unemploymentHigh crime and unemployment• requested assistance in paying rent and services.requested assistance in paying rent and services.

Observational Observational SiteSite Visits Visits

• No visual evidence of Indigent Support Policy at No visual evidence of Indigent Support Policy at Councillors’ Common Room at the City Hall.Councillors’ Common Room at the City Hall.

• Ward Councillor’s office in Eastwood revealed Ward Councillor’s office in Eastwood revealed visible information (pamphlets).visible information (pamphlets).

• Accurate communication of the policy and policy Accurate communication of the policy and policy procedures by the Eastwood Ward Councillor’s procedures by the Eastwood Ward Councillor’s personal assistant. personal assistant.

• No visual evidence of consumer information on No visual evidence of consumer information on the walls/behind counters at municipal offices of the walls/behind counters at municipal offices of Imbali and AS Chetty building. Imbali and AS Chetty building.

Is the term Indigent, as defined in the Is the term Indigent, as defined in the Policy, in terms oPolicy, in terms off qualification for free qualification for free

basic services, accurate and basic services, accurate and appropriate?appropriate?• The term “indigent” as applied in Msunduzi Municipality’s Indigent The term “indigent” as applied in Msunduzi Municipality’s Indigent

Support Policy is defined primarily in relation to the global Support Policy is defined primarily in relation to the global assumed value of properties in each distinct area in which people assumed value of properties in each distinct area in which people reside.reside.

The current definition of indigent tends to be confusing in theThe current definition of indigent tends to be confusing in thefollowing ways:following ways:• Free basic support not specific to the poorFree basic support not specific to the poor• Poor people living in areas valued over R30 000 need to go Poor people living in areas valued over R30 000 need to go

through a complicated annual application process.through a complicated annual application process.• The current system not conducive to establishing the extent to The current system not conducive to establishing the extent to

which the policy is reaching those that qualify through applicationwhich the policy is reaching those that qualify through application• Re-evaluation may effect those indigents that have improved their Re-evaluation may effect those indigents that have improved their

homes over time.homes over time.• The maximum income qualification criterion of R2136 may be The maximum income qualification criterion of R2136 may be

inappropriate (household size & composition, poverty datum line inappropriate (household size & composition, poverty datum line not factored).not factored).

• A standard, uncomplicated definition of indigent would benefit the A standard, uncomplicated definition of indigent would benefit the target population.target population.

Are current dissemination Are current dissemination methods effective?methods effective?

• The study results reflect poor dissemination of the Indigent Policy.The study results reflect poor dissemination of the Indigent Policy.

Factors contributing to inadequate dissemination are:Factors contributing to inadequate dissemination are:

• The lack of a dedicated municipal representative responsible for The lack of a dedicated municipal representative responsible for disseminating the policy.disseminating the policy.

• The lack of a comprehensive information dissemination strategy.The lack of a comprehensive information dissemination strategy.

• Automatic exemptions based on a property value less than Automatic exemptions based on a property value less than R30000 and no enforced water restrictions on exceeding R30000 and no enforced water restrictions on exceeding consumption, undermines the need for public awareness.consumption, undermines the need for public awareness.

• The Indigent Policy document is complex and difficult to interpret.The Indigent Policy document is complex and difficult to interpret.

• Reliance on the Mayoral gatherings (Izimbizo) for disseminating Reliance on the Mayoral gatherings (Izimbizo) for disseminating the policy is ineffective.the policy is ineffective.

• More effective and systematic dissemination is essential.More effective and systematic dissemination is essential.

RecommendationsRecommendationsThis study makes the following recommendations:This study makes the following recommendations:• The re-formulation of qualifying criteria based primarily on The re-formulation of qualifying criteria based primarily on

household income.household income.• Additional factors directly effecting consumption patterns should Additional factors directly effecting consumption patterns should

be considered.be considered.• Inter-departmental input, from all departments concerned with Inter-departmental input, from all departments concerned with

service delivery and finance, is vital to the successful service delivery and finance, is vital to the successful implementation of indigent services support.implementation of indigent services support.

• Systematic monitoring and evaluation of the application of Systematic monitoring and evaluation of the application of indigent policy is necessary.indigent policy is necessary.

• The indigent support policy must be designed in accordance with The indigent support policy must be designed in accordance with municipal affordability.municipal affordability.

• Current billing systems should be reviewed.Current billing systems should be reviewed.• Municipality’s responsibilities to ensure policy conditions and Municipality’s responsibilities to ensure policy conditions and

understanding of the policy reach the intended target.understanding of the policy reach the intended target.• Urgent need for an effective and ongoing information Urgent need for an effective and ongoing information

dissemination strategy. dissemination strategy.

ConclusionConclusion• The South African Government has dedicated the provision The South African Government has dedicated the provision

and access of affordable housing, sufficient water, and and access of affordable housing, sufficient water, and adequate sanitation as a basic human right to all citizens.adequate sanitation as a basic human right to all citizens.

• Msunduzi Municipality has devised a policy which is:Msunduzi Municipality has devised a policy which is:– Inclusive: Applies relief to all categories of rates and servicesInclusive: Applies relief to all categories of rates and services– Progressive: Provides for rebates on moderate consumption in Progressive: Provides for rebates on moderate consumption in

excess of the free basic allowances. excess of the free basic allowances.

• This study concludes that Msunduzi Municipality’s indigent This study concludes that Msunduzi Municipality’s indigent support policy falls short in the following aspects:support policy falls short in the following aspects:

DefinitionDefinition - A more appropriate policy definition based on - A more appropriate policy definition based on household income and composition, rather than property household income and composition, rather than property value, needs to be developed.value, needs to be developed.

StructureStructure - The nature and administration of the existing - The nature and administration of the existing policy is too complex and unwieldy.policy is too complex and unwieldy.

DisseminationDissemination – Dissemination methods need to be – Dissemination methods need to be urgently reviewed to ensure they reach the target groups.urgently reviewed to ensure they reach the target groups.

WE THANK YOU FOR YOUR TIMEWE THANK YOU FOR YOUR TIME