Institute of Municipal Finance Officers

IMPACT OF THE CPA

•How does the Consumer Protection Act affect Local Government?

Institute of Municipal Finance Officers

IMPACT OF THE CPA

• In a nutshell, its business as usual IF we have followed the Batho Pele principles and IF we have taken the King reports seriously.

Institute of Municipal Finance Officers

IMPACT OF THE CPA

• The CPA was enacted to protect consumers in SA.

• especially the poor, illiterate and vulnerable citizens against:Unjust, unreasonable, improper trade practices and Deceptive, misleading unfair or fraudulent conduct.

• TO PROMOTE FAIR BUSINESS PRACTICE

Institute of Municipal Finance Officers

IMPACT OF THE CPA

• Local Government has already been providing for the social needs of the community. The Local Government: Municipal Systems Act 32 of 2000Batho Pele PrinciplesKing ReportsPromotion of Access to Information Act 2 of 2000

Institute of Municipal Finance Officers

IMPACT OF THE CPA• Section 73(1) of the MSA

The Municipality must give priority to the basic needs of the local community…

Services must be equitable and accessible

• Section 95 of the MSACustomer care and management provides for the protection

and well-being of the consumer

Institute of Municipal Finance Officers

IMPACT OF THE CPA

• Batho Pele Principles Consultation Setting Service Standards Increasing access to services Courtesy Information Openness and Transparency Redress Value for Money

IMFO Members & Non-Members involved in Local Government Finances in South Africa

• Private sector institutions, service providers and students in all the provinces of South Africa

• Active members in Namibia, Swaziland & ZimbabweInstitute of Municipal Finance Officers

IMPACT OF THE CPA

• KING REPORTS Discipline Transparency Accountability Fairness Good Governance

Institute of Municipal Finance Officers

IMPACT OF THE CPA

• Discriminatory Marketting We can not exclude a particular community from the

supply of any goods or services on the basis of unfair discrimination.

But what about Fair Discrimination? Fair discrimination is allowed in the Constitution of RSA Free Basic Services for the disadvantaged Pensioner rebates …

Institute of Municipal Finance Officers

IMPACT OF THE CPA

• Right To PrivacyPreviously the Municipality used to sell consumer

informationWith the advent of the Promotion of Access to Information

Act, all consumer information is protected.

Institute of Municipal Finance Officers

IMPACT OF THE CPA

• Cancellations of advanced Bookings or reservationsCommunity Hall Bookings etc. Consumers have the right to cancel the reservationsThe Municipality may charge a reasonable cancellation

feeThe cancellation fee must be set in the TariffsProvision must also be made in the Policy

Institute of Municipal Finance Officers

IMPACT OF THE CPA

• Section 63 of the CPA – Pre-paid Certificates… Allows for the expiration of the pre-paid cards within 3 years

from date of issue OR When the pre-paid card has been fully used Which-ever is the earlier

• Policy must clearly set out : the use and termination of pre-paid cards The Municipalities right to refuse to sell pre-paid cards to a

consumer who is in arrears with other accounts/services The Municipalities right to allocate a portion of the pre-paid

amount towards arrears. Institute of Municipal Finance Officers

IMPACT OF THE CPA

• Communication with the Consumer

• Credit Control and Debt Collection Policy must clearly set the parameters by which credit control and debt collection is governed

• Credit Control Bylaws must be promulgated

Institute of Municipal Finance Officers

IMPACT OF THE CPA

• THANK YOU

Institute of Municipal Finance Officers