IMPACT OF THE CPA

1. Institute of Municipal Finance Officers

2. IMPACT OF THE CPA • How does the Consumer Protection Act affect Local Government? Institute of Municipal Finance Officers

3. 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

4. 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

5. 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 2000 • Batho Pele Principles • King Reports • Promotion of Access to Information Act 2 of 2000 Institute of Municipal Finance Officers

6. 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 MSA • Customer care and management provides for the protection and well-being of the consumer Institute of Municipal Finance Officers

7. 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 & Zimbabwe Institute of Municipal Finance Officers

8. IMPACT OF THE CPA • KING REPORTS • Discipline • Transparency • Accountability • Fairness • Good Governance Institute of Municipal Finance Officers

9. 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

10. IMPACT OF THE CPA • Right To Privacy • Previously the Municipality used to sell consumer information • With the advent of the Promotion of Access to Information Act, all consumer information is protected. Institute of Municipal Finance Officers

11. IMPACT OF THE CPA • Cancellations of advanced Bookings or reservations • Community Hall Bookings etc. • Consumers have the right to cancel the reservations • The Municipality may charge a reasonable cancellation fee • The cancellation fee must be set in the Tariffs • Provision must also be made in the Policy Institute of Municipal Finance Officers

12. 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

13. 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

14. IMPACT OF THE CPA • THANK YOU Institute of Municipal Finance Officers