A Payment Culture Framework for Municipal Services in the North West Province

Abstract

Payment for municipal services in South Africa, especially in the North West province, has been a contentious issue as consumer debt keeps on escalating despite the managerial measures taken by municipal role-players to stop debt accruals. The purpose of this study was to identify the factors that could enhance payment compliance for municipal services, as well as to propose a payment culture framework for municipal services. Residents living within the municipal areas in the four district municipalities of the North West province, municipal role-players, councilors, as well as traditional leaders were involved in this study. Data were collected using a structured questionnaire and were analysed using SPSS. Findings obtained from the study indicate vast opportunities for municipalities to strategically enhance payment compliance. It was discovered that fiscal exchange is the most influential factor to induce residents’ inclination to pay for municipal services. Other factors identified to influence payment compliance include deterrence messages, social influence, payment education, budget transparency, service administration, traditional leadership, communication dynamics and adoption of emerging innovation options. Findings also indicate a lack of collaboration between municipal role-players and politicians resulting in administrative versus political dichotomy. The study recommended that municipalities should provide adequate services to residents and initiate payment enforcement measures, communication dynamics, emerging sustaining innovation options, effective collaborations, as well as encouraging traditional leadership to facilitate payment compliance for municipal services in the North West province.

Municipal Consumer Debt in South African Municipalities: Contexts, Causes, and Realities

“…There is an agreement by both residents and municipal workers that lack of payment enforcement, lack of implementation of credit policies, poor service provision and decision making issues do contribute to payment default by residents. Lack of enforcement capacity and the inability to apply municipal credit policies is among the major causes of payment default, Powell et al (2010) and Enwereji (2018) Poor service provision was also highlighted by participants of this study as a reason for payment default. In the study of Kanyane (2014), poor service provision has led to payment boycotts by several municipalities which erupted to service delivery protests resulting in damage to public properties.…”

“…It is, however, a considered critical factor for municipal workers to understand the relationship between the provision of municipal service and payment for such service. Most residents ascribe their non-payment attitude towards the inability of municipalities to provide equitable service while municipalities attribute their lapses in service provision to the inability of residents to pay for the services consumed (Enwereji, 2018). The existing rifts between the residents and municipalities have resulted in service provision protests which have claimed so many lives, burning and looting of public properties.…”