Analysis of municipal demarcation on financial non-viability of the Vhembe District Municipality

Abstract

This study investigates whether municipal demarcation addressed the challenge of financial non-viability in the Thulamela and Makhado local municipalities and the Vhembe District Municipality. The study also seeks to establish the main causes of demarcation disputes and whether the Municipal Demarcation Board (MDB) consulted the villagers in the Vuwani and Malamulele areas. The study examines whether financial viability is the sole or core factor in determining municipal boundaries. The study opted for a mixed-methods research approach using positivism and interpretivism research philosophies, including key informant interviews with municipal officials of Thulamela and Makhado local municipalities and the Vhembe District Municipality and a survey of households in the Vuwani area (previously under Makhado Local Municipality) and the Malamulele area (previously under Thulamela Local Municipality). The data were complemented by documentary analysis, including annual reports, financial statements, literature review, and legislation pertaining to financial management and local government. The study provides empirical insights into the relationship between municipal boundary demarcation and financial viability. It suggests that municipal boundary demarcation did not address the challenge of financial non-viability in the Vhembe District. The study also provides that the MDB did consult the villagers of the Vuwani area and that the main causes of demarcation disputes were the location of the newly established Collins Chabane Local Municipality. The study recommends that the South African government and the MDB should consider other factors provided for in the Local Government: Municipal Demarcation Act when demarcation decisions are made and that financial viability cannot be used to trump other factors in the restructuring of local government. The implications of this is that the government must address service delivery challenges in the Malamulele and Vuwani areas and that municipal demarcation cannot be used as a solution for financial challenges, especially in rural municipalities. The study includes implications that the MDB can explore other methods to foster stakeholder engagement and public participation. The study contributes to the body of knowledge within the sub-area of financial viability and public participation in the discipline of Public Administration and Management.