privatizing revenue collection in local authorities (first copy)

8/21/2019 Privatizing Revenue Collection in Local Authorities (First Copy)

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AN ASSESMENT OF THE EFFECT OF PRIVATIZING REVENUE

COLLECTION IN LOCAL AUTHORITIES: A CASE OF JUBA CITY

COUNCIL.

By

Akech Jacq!"#e

A Re$ea%ch P%&'&$a! S()"**e+ "# Pa%*"a! F!,"!!)e#* &, Req"%e)e#* &, *he +e-%ee &,

I#*e%#a*"a! %e!a*"$ a#+ +"'!&)acy B.IR/0 &, Nk)(a U#"1e%$"*y

2345


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ABBREVIATIONS

CD - City Director

ERB - Economic Research Bureau

DPPSC - District Produce Purchase Supervision Committee

NU - Nkumba University

BIRD - Bachelor o international Relations and Diplomacy

!CC - !uba City Council

PSRC - Parastatal Sector Reorm Committee

S"E#s - State "$ned Enterprises

%C&' - %a((ar Ci(arette ) &obacco 'actory *td+

%"D - %ead o departments

,B - ,orld Bank

DRSD - Privati.ed Revenue Source onitorin( Department

I' - International monetary 'und

SSR/ - South Sudan Revenue /uthority

PRS - Private revenue resources

SSP - South Sudan Shillin(s

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ABSTRACT

&he adoption o decentralisation in South Sudan $as on the basis that the policy enhances

service delivery+ /s a result0 substantial po$ers0 unctions0 responsibilities and services $ere

devolved to local (overnments+ &o enable them achieve the intended ob1ective o eective

service delivery0 local (overnments $ere mandated to (enerate their o$n revenue rom local

ta2es to be supplemented $ith the central (overnment#s (rants+ Initial eorts to collect these

revenues ollo$ed traditional bureaucratic systems0 $here local (overnments directly collected

the ta2es throu(h local (overnment oicials+ &his system ho$ever0 $as associated $ith several

challen(es includin(3 hi(h administrative costs3 collection0 monitorin( and mana(ement

technical hitches+ &he system also proved detrimental because it promoted poor and unair ta2

assessments0 connivin( bet$een ta2payers and collectors or e2emption or less pay0 and it $ere

closely linked to corruption and all kinds o ne(li(ence at the collection points+

&he overall ob1ective o this study $as to assess the eect o privati.in( revenue collection in the

*ocal /uthorities0 takin( !uba City as a case+ Speciically the study aimed at identiyin( the

e2tent to $hich the council has achieved to collect revenue in time+ Secondly0 the study aimed at

assessin( the e2tent to $hich the collection o each privati.ed revenue sources has improved

ater privati.ation+ &hirdly0 to investi(ate the ma1or problems e2perienced in the revenue

collection process and su((est possible alternative solutions+ 'inally0 the study aimed at

recommendin( on other revenue sources that can be e2ploited throu(h a(encies+

&he study $ill involve our cate(ories o respondents0 namely3 &he !uba City council oicials0

Councilors0 /(encies and Revenue collectors+ &he study dre$ a sample o respondents rom

each cate(ory by usin( dierent samplin( methods0 such as purposeul samplin(0 simple random

samplin(0 and systematic samplin(+ / case study desi(n $ill be selected or this research in

order to avoid (oin( around to all other local authority $hich have privati.ed their revenue

sources+

&he study $ill be a case study0 and inormation $ill (athered by usin( personal intervie$s0

4uestionnaires0 and observation and documentary sources+ &he data collected $ill be analysed

statistically by usin( descriptive statistics method such as line (raph0 re4uency table and bar

(raphs+

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TABLE OF CONTENTS

CONTENTSABBREVIATIONS....................................................................................................................................2

ABSTRACT............................................................................................................................................... 6

TABLE OF CONTENTS..........................................................................................................................5

CONTENTS...............................................................................................................................................5

CHAPTER ONE........................................................................................................................................7

INTRO/UCTION AN/ BAC8GROUN/ OF THE STU/Y................................................................7

4.3. I#*%&+c*".................................................................................................................................... ....7

4.4. Back-%+ &, *he S*+y....................................................................................................................7

4.6.Re$ea%ch O(9ec*"1e$................................................................................................................... .......43

4.5. Re$ea%ch e$*"$..........................................................................................................................43

4.;. Ra*"a!e a#+ S"-#","ca#ce &, *he $*+y..........................................................................................44

4.< E*h"ca! C$"+e%a*"$................................................................................................................... ...45

CHAPTER T=O.....................................................................................................................................4;

LITERATURE REVIE=....................................................................................................................... 4;

2.3.I#*%&+c*".......................................................................................................................................4;

Re1e#e a#+ e>'e#+"*%e "# L&ca! G&1e%#)e#* A*h&%"*"e$ ..............................................................4a*" "# *he L&ca! A*h&%"*"e$ #+e%)"#e$ *he %&!e &, cc"!$ "#

,"#a#c"#- "*$ +e1e!&')e#* '%&9ec*$ a#+ "# a$$"$*"#- *he ce#*%a! G&1e%#)e#* *& ")'!e)e#* *he

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Ec&)"c Rec&1e%y P%&-%a))e. The #$*a(!e %e1e#e (a$e ha$ (ee# "+e#*","e+ a$ *he )a9&%

c$*%a"#* *& cc"!D$ ca'ac"*y *& +e1e!&'. Th$ *h"$ $"*a*" ha$ -e#e%a*e+ '(!"c +"$$a*"$,ac*"

a#+ c%"*"c"$) *he '&&% 'e%,&%)a#ce &, cc"!$ e$'ec"a!!y "# *he '%&1"$" &, $&c"a! $e%1"ce$ a#+

+e1e!&')e#* ac*"1"*"e$.............................................................................................................................2@

2.2. E)'"%"ca! L"*e%a*%e Re1"e....................................................................................................... ....2@

CHAPTER THREE.................................................................................................................................62

RESEARCH METO/OLOGY.............................................................................................................. 62

6.3. I#*%&+c*" ..................................................................................................................................... 62

6.4. Re$ea%ch /e$"-#.............................................................................................................................62

6.2. The S*+y P&'!a*" ...................................................................................................................... 66

6.7 Re!"a("!"*y a#+ Va!"+"*y &, *he /a*a..................................................................................................6

6. P%&'&$e+ /a*a A#a!y$"$ *ech#"qe$..................................................................................................6

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CHAPTER ONE

INTRO/UCTION AN/ BAC8GROUN/ OF THE STU/Y

4.3. I#*%&+c*"

&his chapter $ill present the back(round o the study0 study ob1ectives0 statement o the

problem0 research 4uestions0 rationale and si(niicant o the study0 the conceptual

rame$ork0 scope and limitation o the study0

4.4. Back-%+ &, *he S*+y

&his study $ill concerned $ith the eect o privati.in( revenue collection in *ocal

/uthorities+ &hou(h there are various revenue sources in the council0 speciically0 the

study $ill deal $ith privati.ed revenue sources only0 in !uba City Council+

*ocal 5overnment /uthorities 6Urban7 District8 $ere re-established in 9:;9+ Since then

their perormance in terms o revenue (eneration has been unsatisactory+ &his is so

despite the act that *ocal /uthorities have been (iven $ide po$ers to (enerate revenue

rom various sources in their area o 1urisdiction0 as laid do$n under the *ocal

5overnment 6'inance8 /ct No+ : o


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Section @6A8 o *ocal 5overnment 6Urban /uthorities8 /ct No+ o


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b+ &o promote social $elare and economic $ellbein( o all persons $ithin its area o

1urisdiction+

c+ Sub1ect to the National Policy and plans or rural and urban development0 to urther

the social and economic development in its area o 1urisdiction+

%o$ever0 section A? o *ocal 5overnment 6'inance8 /ct0 indicates that0 the spendin( po$ers

o !CC 6*ocal /uthority8 are limited to spendin( or those purposes or $hich it is

established+ &hat means0 !CC may actively en(a(e and take part in economic development

by usin( its po$ers and position to establish development pro1ects or the purpose o up-

litin( the economic development o the people and nation at lar(e

4.2. S*a*e)e#* &, *he P%&(!e)

&he current act o adoptin( o decentralisation in


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their council+ &his is done throu(h le(al sources o revenue collection in the *ocal

/uthorities+ !uba City Council0 as one o *ocal /uthority in South Sudan came into bein(

eectively in year


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4.6. Re$ea%ch O(9ec*"1e$

4.6.4 Ge#e%a! &(9ec*"1e

&o assess the eect o privati.in( revenue collection in the *ocal /uthorities0 takin( !uba

City Council as a case study+

4.6.2 S'ec","c &(9ec*"1e$

In order to meet the overall ob1ective speciically the study intended3

9+ &o identiy0 the e2tent to $hich the council has able to collect revenue in time


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4.;. Ra*"a!e a#+ S"-#","ca#ce &, *he $*+y

&he study $ill be done on privati.ation o revenue collection $hich is one o the policy

reorms operational in South Sudan0 thus0 the study $ill e2plored and $ill hi(hli(ht the

$eaknesses and stren(th o usin( private irms in collectin( revenues+ &he study indin(s

$ill contribute to theoretical debates on the sub1ect o privati.ation o revenue collection and

service delivery as $ell as a $ay or$ard to the improvement o the policy7reorm+

&he study $ill also beneit all stakeholders $ho include central (overnment0 local

(overnments0 private revenue collectin( irms and the (eneral public+ &his is done by

providin( them $ith insi(hts on ho$ to cooperate and improve eiciency and eectiveness

in revenue collection0 and ho$ to ensure eective accountability or the collected public

revenues+ ,hile or the academicians0 the indin(s o the study $ill be a point o reerence

and a basis or urther research in the same ield+

'urthermore the study $ill be conducted as a partial ulillment o the re4uirement o

attainin( a bachelor o international relation and diplomacy 6B+IRD8 4ualiication

4.7 Sc&'e &, *he $*+y

&he scope o the study $ill consists o the content scope0 (eo(raphical scope and time scope+

4.7.4 T")e Sc&'e

&he research $ill be carried out rom !an


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&he study $ill be carried out at !uba City0 in South Sudan+it is the capital and lar(est city o

the Republic o South Sudan+ It also serves as the capital o Central E4uatoria0 one o the ten

states o South Sudan+ &he city is situated on the ,hite Nile and in the middle o South

Sudan and about ;= km rom Girol ,est County o lakes state+ It also unctions as the seat

and metropolis o !uba County+

4.7.6 C*e#* Sc&'e

&he scope o the study $ill be limited to the eect o privati.in( revenue collection in !uba

City Council+

4. Cce'*a! ,%a)e&%k Cce'*a! )&+e!0

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I#+e'e#+e#* Va%"a(!e /e'e#+e#* Va%"a(!e

I#*e%1e#"#- &% E>*%a#e&$ Va%"a(!e$

S&%ce: /e1e!&'e+ (y *he %e$ea%che% ,&% *he '%'&$e &, *he %e$ea%ch

E>'!a#a*" &, cce'*a! ,%a)e&%k)&+e!

&he researcher $ill conducted this research on the ollo$in( measurable variables as depicted

on the model above 6sho$in( the relationship bet$een independent and dependents variables and

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PRIVATIZITING REVENUE

COLLECTION

-Private officials

-Policies

-Public Choice

-Individuals

LOCAL AUTHORITIES

-a!id "evelo!#ent

-$table %cono#ic &ro'th

-(etter service su!!l)

-*ccountabilit)

-+rans!arenc)

-+a, evasion

-Corru!tion

-%ducation


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ho$ they are aected by the Intervenin( or E2traneous Hariables8 $hich ultimately sho$s out

that Privati.in( o revenue collection in local (overnment has eects or not+

4.< E*h"ca! C$"+e%a*"$

/n introductory letter $ill be obtained rom Nkumba University to assist the researcher to (ain

acceptance rom prospective respondents o this research+

Conidentiality $ill be assured to all participants+ /ll transcripts0 notes0 documents and

audiotapes $ill be stored in a lockable cabinet at the researcher#s home+ Names o participants

$ill be dis(uised+

Consent $ill be obtained rom all participants in $ritin(+ Each participant $ill receive a letter

outlinin( the research and a consent orm or their records0 as $ell as the consent orm that the

researcher $ill keep+

4.@ L")"*a*"$ &, *he S*+y

In any study there must be limitations that $ill prohibit the researcherto conduct his7her study

eectively

C&$* Due to insuicient unds provided0 the researcher $ill not be able to conduct the study

eectively+

T")e ,ac*&%the duration provided to conduct the study is $ill be short+ In order to collect data

it needs enou(h time to collect all relevant inormation+

C,!"c*$:due to current prevailin( conlicts in south Soudan it mi(ht be hard or mi(ht aect the

chance o the researcher to collect data eectively hence renders the research inective+

/&c)e#* ost o the or(ani.ations do keep some o their documents as conidential+ So

researcher $ill not able to (et the necessary inormation+

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CHAPTER T=O

LITERATURE REVIE=

2.3. I#*%&+c*"

&his chapter $ill cover the conceptual deinitions0 theoretical bases o study0 empirical studybased on speciic ob1ectives o the study+

2.4. The&%e*"ca! L"*e%a*%e Re1"e

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U#+e%$*a#+"#- *he L&ca! G&1e%#)e#* A*h&%"*y.

*ocal 5overnment /uthority as ound in *ocal 5overnment *e(islation-


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i+ &he buildin(0 e4uippin( and lettin( o shops and d$ellin( houses both in the rural

and urban areas

ii+ &he establishment0 maintenance0 operation and control o draina(e and se$era(e

$orks3

iii+ Control and prescription o methods o husbandry on a(ricultural land3

iv+ /nd any other unctions and services $hich may be beneicial to the residents o

the respective area o 1urisdiction+

(0. O(!"-a*&%y F#c*"$

&hese are the basic unctions $hich each *ocal 5overnment /uthority is re4uired by la$

to dischar(e+ &o mention e$0 these are3

i+ &o maintain and acilitate the maintenance o peace0 order and (ood (overnment

$ithin its area o 1urisdiction

< *ocal 5overnment 6Urban /uthorities8 /ct No+ o


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%o$ever0 in the real situation0 it is not easy or all councils to perorm all mentioned

unctions in their areas o 1urisdiction+ But at least all councils should be able to perorm

the basic unctions3 these are obli(atory and permissive unctions

Re1e#e a#+ e>'e#+"*%e "# L&ca! G&1e%#)e#* A*h&%"*"e$

*ocal 5overnment /uthorities have been provided $ith *ocal 5overnment /ct No+ : o


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(+ /ll ees0 char(es0 due and rent recoverable by the council6e+(+ property ta28

h+ 'ines on violation o counts $ritten la$+

oreover0 the central (overnment also (ive (rants or provision o

a+ Public health service0 Education service0 Construction0 Reconstruction7maintenance

o roads0 se$a(e and a(ricultural e2tensions service+

b+ Reund o money spent on outbreak o inectious diseases

c+ Salaries or senior sta o the council capital $orks are 1ointly unded by the central

(overnment and the council+ /ll resident N5" and $ell-$ishers0 such as0 our sister

cities0 Rotary clubs0 etc+ normally (ive an appreciable helpin( hand

'urthermore0 accordin( to section A?698 o the *ocal 5overnment 6'inance8 /ct No+ : o


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diverse i+e+ China0 /l(eria0 alaysia0 &hailand0 >orea0 ala$i0 &an.ania+ /nd no$

South Sudan+

/&%a+& a#+ M&!? 4@@


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O%"-"# &, P%"1a*"?a*"

8)$$a 4@@70 pointed out that3 privati.ation has its ori(in rom the neo-classical

economists $ho desired less (overnment intervention in the economy and believed in

superior perormance o private sector+

Ma%$ha! a#+ M* 4@in(dom $here it spread rapidly to other industriali.ed countries like 'rance and

5ermany+ %o$ever0 the same scholar contends that *atin /merica has a lon(er history o

privati.ation+ 'urthermore0 cook ) >irkpatrick 69:8 pointed out that0 in /rica0 &o(o0

Ivory Cost0 >enya0 ali and Ni(er $ere the irst /rican countries to plan or sellin(

public sector enterprises+

%o$ever0 privati.ation $as developed $ithin the rame$ork o neo-classical economic

theory that advocates liberali.ation o state role in the Economy+ &his is due to the

reasons that0 in neo-classical economic theory0 5overnment Intervention in the economy

is considered unnecessary and harmul to the economy0 because it acts as brake on

economic pro(ress+ /lso neo-classical economists tend to ar(ue that0 a ree market

economy $ithout state intervention $ill lead to trickle-do$nJ to the poorest society

Ra*"a! &, P%"1a*"?a*"

A+a) e*. A!. 4@@20contends that0 privati.ation thus increases total actor productivity

in the economy+ /nd it#s real public inance impact arises out o the additional ta2

revenue0 (enerated rom the enhanced value o the assets reali.ed under private

o$nership

=a!!e 4@@20 ar(ue that0 private companies in competitive markets are likely to sell

(oods more cheaply than public monopolies0 leadin( to an increase in (eneral $elare+

&his is $hat is reerred to as a locative efficiency+ &he more privati.ation increases

competition0 the likelier is to result in (reater eiciency+ /lso privati.ation aims at

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increasin( economic eiciency by promotin( production eiciency (ains+ &his implies

usin( e$er reasons o input (iven the level o output+ In other $ords0 is the optimal use

o inputs $ithin the irm+

,alle continues to ar(ue that0 $ith various subsidy e2emptions and ta2 breaks0 (iven to

public enterprises0 their production processes do not ade4uately relect the scarcity value

o (oods and en(ender various kinds o ineiciency+ %e continues to ar(ue that3

privati.ation rees up the (overnment resources to ocus on the re(ulatory and social

unctions that should be its primary purpose+

'urthermore0 dierent motives $hich 1ustiy privati.ation e2ists in developed and

developin( countries+ It is evident rom the above discussion that various scholars (ive

dierent motives or privati.ation+ %o$ever0 or the purpose o this study0 basin( on the

above discussion0 it can be concluded that0 there are three ma1or motives or privati.ation0

these are3 to increase economic eiciency to stren(then the private sector0 and lastly is to

increase the role o private sector in the economy+

Rea$$ ,&% '%"1a*"?a*" "# S&*h S+a#.

&he (overnment o South Sudan0 throu(h the parastatal sector reorm commission

6PSRC80 made various reorms in the state o$ned enterprises 6S"E#s8+ ost o these

reorms $ere (eared at indin( solutions to socio-economic problems0 speciically on

policy issues+ &he reasons that necessitated privati.ation $ere as ollo$s+

a+ Privati.ation0 aimed at improvin( source allocation0 producin( (oods and services

more eiciently0 reducin( iscal deicits and minimi.in( politici.ation o

enterprises+

b+ &he burden o runnin( these public enterprises $as too heavy or 5overnment to

bear+ 5iven the economic conditions the state could no lon(er allo$ the (rantin(

o subsidies to loss makin( parastatals

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c+ /lso the need to trimmin( do$n the role o the state 6as one o its reorm

measure8 demanded the creatin( o an enablin( environment in terms o

productive employment and doin( a$ay $ith economic restrictions+

In that case0 it can be observed that0 the main reasons or privati.ation in South Sudan

$ere to (et rid-o loss makin( parastatals $hich increased a burden to the 5overnment in

runnin( them+ &he 5overnment bein( the sole o$ner o most parastatals $as orced to

(ive subsidies on these parastatals to enable them run their daily activities+ Based on the

PSRC reports it $as only %C&' only $hose perormance as (ood+ &he reason behind it

privati.ation bein( that its uture prospects $ere unreliable+

/ccordin( to 5hura 69::80 amon( the several reasons or the adoption o privatisation is

that State "$ned Enterprises 6S"Es8 have (enerally posted disappointin( perormances+

&he author notes that0 althou(h some o the unction $ell0 many others are notoriously

ineicient+ &hey mana(e to survive throu(h tari protection a(ainst competin( imports0

preerences in public procurement0 e2clusive ri(hts0 and preerential access to credit in

state-o$ned banks0 ta2 e2emptions0 and public subsidies+ &hus0 many State "$ned

Enterprises in act help stile the local private sector and oster economic sta(nation+ &he

contribution o the author $as ound relevant in line $ith the reasons behind the decline

in nationalisation or privatisation in $orld economies+

M&+a!"*"e$ &, P%"1a*"?a*"

/ccordin( to Savas 69::80 (overnment activities can be privati.ed throu(h three broad

alternatives+ 6PSRC 9::;8&hese orms rom Savas are described belo$ as ollo$s+

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a. /e!e-a*"

&he (overnment dele(ates to the private sector part or all o the activity o producin( (oods

or services but retains the responsibility to oversee the results

&his re4uires a conirmin( active role o the (overnment and savas adds that dele(ation is

carried out throu(h the ollo$in( main modalities3 contract0 ranchise 6concession8 and lease0

(rant and voucher+

6i8+ /e!e-a*" (y c*%ac*"#-- &his involves contractin( out an activity to the non-state

sector over a speciied period+

6ii8+ /e!e-a*" (y F%a#ch"$e- &his involves a$ardin( a private or(ani.ation an e2clusive

ri(ht to sell a service or (ood to the public over a speciied period and area in e2chan(eor a+ accordin( to Savas there are t$o variants o ranchise0 these are K Cce$$"

6Suitable or public domains such as air space or utilities8+ A#+ !ea$e 6rentin( a

(overnment- o$ned asset or use by the private sector+

6iii8+ /e!e-a*" (y -%a#*- &his involves providin( a subsidy to a private entity so that it can

deliver a service to the public

6iv8+ /e!e-a*" (y V&che%- this involves issuin( voucher 6e2chan(e instruments or a

speciic (ood or service8 to eli(ible beneiciaries o ormerly state- o$ned service0 no$

bein( produced by the private sector in the market place+

6b8+ /"1e$*)e#* /"1e$*"*%e0

&his orm o privati.ation involves transer o o$nership and control o state o$ned

enterprise to the private sector throu(h outri(ht sale 6by private placement0 public sale0

employee buy-out0 and to users or donation8+ &his is the narro$ concept o privati.ation

as championed by the prota(onists o the privati.ation movement includin( the

international aid a(encies+

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6c8+ /"$'!ace)e#*

Under this orm o privati.ation0 the (overnment is (radually displaced by the private

sector+ /ccordin( to Savas0 there are three types o Displacement+ &hese are

6i8+ /"$'!ace)e#* (y +e,a!*- this is $hen the (overnment service or (ood is

unintendedly inade4uate and the private sector ills the (ap+

6ii8+ /"$'!ace)e#* (y "*h+%aK this may occur in t$o $ays-

&he (overnment $ithdra$s deliberately rom production by li4uidation or

shuttin( do$n+

By invitin( the private sector into an activity $hile shrinkin( its stake 61ointventure8+

6iii8+ /"$'!ace)e#* (y +e%e-!a*"- this occurs $hen the (overnment removes

obstacles to entry into a ield o activity and enables the private sector to

challen(e a (overnment and eventually displace the (overnment+

%o$ever0 privati.ation alone is neither a panacea or 5overnments# ills nor suicient to

ensure economic pro(ress+ Privati.ation is most eective $hen it is part o a broader

pro(ramme o economic policy reorm and institutional development+ &he advanta(e o

privati.ation can be ma2imi.ed $hen 5overnment assures a competitive environment0

has ade4uate procedures or promotin( cost reduction and service 4uality0 and stron(ly

support small and medium scale enterprise and S"E#s+

&hereore0 the 5overnment must retain responsibility over the privati.ed irm to monitor

their perormance and the ulillment o the contractual obli(ations and commitments o

the ne$ o$ners0 and to protect consumers# and $orkers# ri(ht+

2.4.2. The Cce'* &, Ta> Ma#a-e)e#* a#+ I*$ P%"#c"'!e$.

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Ja)e$ 4@


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6iii8+ Ca## &, S")'!"c"*yK &a2 system should be simple0 ta2 orms or returns should be

simple0 rates should be precisely laid do$n+ Items o ta2ation should be easily

identiiable+ &a2 la$s should be clear and easily understandable to a common man+ &a2

e2emption should be easily identiiable+

6iv8+ Ca## &, /"1e%$"*y- &here should be a number o sources o ta2 revenue0 so that0 there

should be non-uncertainty about revenue collection+ I there is one place in ta2 revenue

$hose collection has ailed rom certain sources it should be automatically made (ood

rom certain other sources+

Sha,*& 4@@70ar(ues that0 any increase in ta2 must reduce net income and purchasin(

po$er o ta2payers+ &his means that the settin( o ta2 should also consider people#s

ability to pay ta2 as C!a%k a#+ M"chae!69:@8 recommended i+e+ ability to pay ta2

should be based on person#s ability to pay them as measured by income0 $ealth or some

similar actor+

%o$ever0 or the case o *ocal /uthorities0 revenue collection beneit received criteria

should be also be used+ &hat is the beneit that a ta2 payer derives rom the local

(overnment service rendered should be consummate0 thou(h not based on 4uid pro 4uo

basis+

The Cce'* &, *a>a*" a#+ /e1e!&')e#* "*h"# L&ca! A*h&%"*"e$

8"#e)& a#+ N-"!a#-a 4@@@0pointed out that0 the main purpose or $hich *ocal

/uthorities came into e2istence is to provide 4uality services to the public in its localities+

In particular0 the relie o poverty0 provision o public education0 provision o hospitals0

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construction o se$ers0 clean $ater0 hi(h$ay and public transport services+ &he

provision or such services absorbs most o the money paid to *ocal /uthorities0 rom

local ta2es and (overnment (rants+ &hey continue to ar(ue that0 *ocal /uthorities need to

plan and control their e2penditures0 increase revenue collection and institute strict

measures or ma2imum revenue reali.ation+ &hey pointed out that0 5overnment ta2

policy and administration is crucial or local authority development $ith minimal

political interorce+

S'a%ke 4@@58 ar(ues that0 *ocal /uthorities are concerned $ith the prosperity o their

areas and other thin(s involved in the development such as industry so as to create a

stron( ta2 base

8"#e)& a#+ N-"!a#-a 4@@70ar(ue too0 that0 sites should be made available0 but it

also means that0 the provision o (ood communication0 attractive to$ns0 cultural acilities

and modern acilities are a pre-condition or these authorities# development+ &his may

also involve $illin(ness to accept *ocal /uthority investin( on non-remunerative

pro1ects provided that beneits0 particularly in vie$ o improved local economy $ill

ultimately accrue+ %o$ever0 this $ill re4uire lon(-term inancin(+ 'urthermore0 they add

that or national economic mana(ement reasons0 public sector e2penditures0 includin(

local authority spendin( may be curtailed irrespective o the needs o individual local

authority+ /(ain an e2cessive level o local ta2ation can dama(e the economic and

political pressures+

&he t$o concluded by assertin( that0 any decision about the level o total ta2ation must

take into account the eect upon the services provided by local authorities as the eect

upon the ta2 payers0 (iven the poor economic base and hardships+

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%o$ever0 the current trend o ta2ation in the *ocal /uthorities undermines the role o

councils in inancin( its o$n development pro1ects0 and in assistin( the central

5overnment to implement the Economic Recovery Pro(ramme+ &he unstable revenue

base has been identiied as the ma1or constraint to council#s capacity to develop+ &hus0

this situation has (enerated public dissatisaction and criticism on the poor perormance

o councils especially in the provision o social services and development activities+

2.2. E)'"%"ca! L"*e%a*%e Re1"e

/ (reat number o research studies have been undertaken by dierent scholars in relation

to the issue o revenue collection in South Sudan *ocal /uthorities+ %o$ever0 it is

unortunate0 that the researcher ound none amon( the studies $hich is directly relatin( to

the sub1ect matter 6eect o privati.in( revenue collection in *ocal /uthorities8+ &he

ollo$in( is the brie revie$ on the indin(s ound in these studies+

8ee#9a 4@


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e+ In most local 5overnment /uthorities0 there have been cases o mis-mana(ement

o unds and even thets $hich have urther discoura(ed the people rom payin(

ta2es+

'urthermore0 >een1a Pointed out that0 *ocal /uthorities have been acin( serious

inancial problems and the central (overnment has not been able to meet its obli(ation as

laid do$n in local (overnment 6inance8 act No+ : o


31/43

N+a(a 4@


32/43

revenue sources to earn suicient revenues+ In turn several councils have tried to balance the

public-private sector relationship by privati.in( some o their revenue sources+ &hereore it is

the intention o this study to assess the eect o privati.in( revenue collection in *ocal

/uthorities+

CHAPTER THREE

RESEARCH METO/OLOGY

A+=+ I#*%&+c*"

&his chapter $ill comprise the $hole set o methodolo(y or this research0 items o

research desi(n0 units o in4uiry0 samplin( techni4ues0 data collection methods0 data

presentation methods and analysis+

6.4. Re$ea%ch /e$"-#

Research Desi(n $ill addresses the plannin( o scientiic in4uiry that is desi(nin( a

strate(y or indin( out somethin(+ Desi(nin( a research pro1ect involves collection o

data0 or(ani.in( and analy.in( data to ulill the purposes o research+

/ case study desi(n $ill be selected or this research in order to avoid (oin( around to all

other local authorities $hich have privati.ed their revenue sources+ &his $ill be done

purposely to cope $ith the time limit+ Since the method adopted is less e2pensive0 it $ill

enabled the researcher to overcome the inancial constraints+ Normally0 the case study

research desi(n creates a conducive environment or combinin( a variety o evidence

includin( intervie$s0 documents and observation to conduct in-depth in4uiry into a social

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phenomenon0 in $hich research interest $ill involve a ran(e o variables0 but al$ays

maintainin( the unitary nature o unit o in4uiry+ ,ith this research desi(n it $ill be

possible to study the eect o privati.in( revenue collection in *ocal /uthorities by

(atherin( inormation in !uba City Council

6.2. The S*+y P&'!a*"

'or purpose o achievin( the overall ob1ectives o the study0 !uba City Council $ill the

unit o analysis0 rom $hich the samples o respondents $ill be selected+ &he choice o

the ollo$in( units o in4uiry $ill be inluenced by their kno$led(e o council#s revenue

collection activities+ &he units o in4uiry $ill comprise o the ollo$in(

a+ City Director 6CD8

b+ embers o Parliament 6P#s8

c+ City &reasurer 6C&8

d+ Revenue /ccountant 6R/8

e+ E2penditure /ccountant 6E/8

+ 'inal /ccounts /ccountant 6'//8

(+ %eads o Departments 6%oD8

h+ Councilors

i+ /(encies

1+ /(encies# revenue Collectors+

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&he City Director Councilors ember o Parliament0 City &reasurer0 Revenue

/ccountant0 E2penditure /ccountant0 'inal /ccountants /ccountant and %ead o

Departments are the ones $ho $ill be involved much in plannin(0 implementin(0

correctin( and supervisin( no$ and then the modern $ays o e2ploitin( the council

revenue sources+

&hey are the ones $ho educate ta2 payers on the importance o payin( ta2+ /lso they

supervise council#s revenue collection and bud(et council#s e2penditure+ &a2payers $ere

the tar(et o the council in earnin( suicient revenue0 $hile the /(encies $ere the ones

$ho supervised and implemented the daily operations o revenue collection in the counci

6.6. Sa)'!"#- Tech#"qe$

Nichols 69::98 contend that0 once there is an idea o the si.e o the sample to be

aorded0 also there should be a think about the level o accuracy this sample $ill

(ive0 and i this is ade4uate or the purpose+ 'or e2ploratory on in-depth $ork0 the

aim is to (et a Meel# or a problem+ &here is no point o usin( a lar(e sample3 sample

si.es in the ran(e o A= to ?= are normally enou(h+ Such small0 inormal studies

should include unit rom all sub (roup o interest in the tar(et population+ 'or

e2ample in a study o latrine o$ners0 (roup containin( lo$0 middle0 upper income

o$ner can be chosen+ &he sample si.e need only be lar(e enou(h to include ten to

iteen members o all the sub-(roup o interest+

%e urther adds that0 or random samplin( method the decision on sample si.e

becomes a little more complicated+ Even so0 the choice o the sample si.e is more a

matter o 1ud(ment than calculation+ &he main actors are usually the need to look

separately at the results o dierent sub-(roup in the tar(et population+

&hereore0 or the purpose o havin( a comprehensive understandin( o pertinent

issue at stake0 the sample $ill be taken rom !CC only+ /lso in order to make sure

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that the chosen sample $ill be accurate0 complete and no duplications occur0 this

study employed dierent type o samplin( procedures dependin( on the (roup bein(

intervie$ed+

i8 P%'&$"1e $a)'!"#- method $ill be employed to determine the sample to

represent Councils oicials0 basin( on the position0 e2perience and kno$led(e o

the respondents+ &his $ill be due to the reasons that0 not all council#s oicial $ill

actively involve in revenue collection e2ercise+

ii8 S")'!e %a#+&) $a)'!"#-method $ill also be employed to determine the sample

to represent the councilor and a(encies+

iii8 Sy$*e)a*"c $a)'!"#- $ill also be employed or the revenue collectors+ &he

researcher $ill intervie$ every irst revenue collector $ho $ill be ound atrevenue collection center until the sample o eleven revenue collectors one rom

each a(ency $ill be achieved+

Basin( on the above idea0 the sample si.e o this study $ill comprise a total o A@

respondents key inormant in !CC+ &his sample $ill represent since both key inormants

in revenue mana(ement and payments $ere considered &he distribution o respondents in

each cate(ory $ill be as ollo$s- 6"ne8 City Director0 6t$o8 embers o parliament0

6one8 City &reasurer0 6one8 Revenue /ccountant 6"ne8 E2penditure /ccountant0 6"ne8

'inal /ccounts /ccountant 0 6&hree8 %oD0 6ten8 Councilors0 6si28 /(encies out o eleven0

and 6eleven8 revenue collector out o many0

6.5. /a*a C&!!ec*" Me*h&+$ a#+ A''%&ache$

&he researcher $ill combine both primary and secondary data in collectin( data+

a. P%")a%y /a*a

'or purposes o in-depth understandin( o the sub1ect o study0 the researcher $ill

employ the ollo$in( instruments to (ather inormation+

i+ Pe%$a! I#*e%1"e K / structured (uide o 4uestions $ill be used to (ather

inormation rom respondents $ho $ill be in no position to use sel-administered

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4uestionnaires+ &his method $ill be employed so as to e2plore detailed inormation

and allo$ le2ibility durin( the study+

ii+ e$*"#a"%e: "pen ended 4uestions $ill be used to sel-administered

4uestionnaires+ &his method $ill be employed in order to (ive more reedom to

respondents so that0 they can present their vie$s and opinions in relation to the

sub1ect o investi(ation+

(. Sec+a%y /a*a

/&c)e#*a*":ore inormation $ill be obtained by revie$in( various documents

relatin( to the area o study+ &hese documents $ill included council annual bud(et

reports0 council research reports0 councilors0 minutes and other relevant documents

$hich $ill be available+

6.; /a*a C&!!ec*" *&&!$

6.;.4 I#*e%1"e$ Sche+!e$

/n intervie$ schedule is intervie$ $ith pre-coded 4uestion to produce 4uick0 cheap

and easy 4uantitative data $hich is hi(h in reliability but lo$ in validity+ 6Silverman


37/43

6.;.2 e$*"#a"%e$

uestionnaires are instruments used or collectin( data in research+ &hey usually

include a set o standardi.ed 4uestions that e2plore a speciic topic and collect

inormation about demo(raphics0 opinions0 attitudes0 or behaviors+ &he 4uestion

(uide $ill include our 6F8 sections0 section one $ith the Bio-data $hile section t$o

$ith the irst ob1ective 4uestions0 Section three $ith the second ob1ective 4uestions

and Section our $ith the third ob1ective 4uestions about the topic study+ /lso the

4uestions $ill both close and open ended clear and unambi(uous to acilitate

collection o relevant data+

6.7 Re!"a("!"*y a#+ Va!"+"*y &, *he /a*a

&$o criteria $ere used to measure the 4uality o research desi(n+ &hese include

validity and reliability+

6.7.4 Re!"a("!"*y

Reliability reers to the e2tent to $hich a scale produces consistence results0 i

repeated measurements are made the measurin( instrument $hich $ill be used is

e2pected to provide consistent results+ &he result o the study $ill be measured by

independent and Dependent variables

6.7.2 Va!"+"*y

&he de(ree o accuracy7truthulness is e2pected because o the $ay the researcher

or(ani.ed the 4uestions0 and structure o the 4uestionnaire+ oreover the sample is

rom a true representative o the population+ &he sample si.e is lar(er enou(h to(uarantee validity+

6. P%&'&$e+ /a*a A#a!y$"$ *ech#"qe$

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&he collected data $ill be processed and appropriately analy.ed accordin(ly+ &he

collected data $ill be analy.ed by usin( both a!"*a*"1e and a#*"*a*"1e!y

methods0 but mostly the researcher $ill use 4uantitatively method to analy.e and

interpret data because the study $ill involve mostly the use o 4ualitative inormation

rather than 4uantitatively+

REFERENCES

/dam0 Cavendist ) inistry 69:: and ,alt0 5 6irkpatrick0 Colin 69::?8 Privati.ation Policy and Perormance0 9st ed+0

%arvester ,heatshea0 Ne$ Gork

Cook0 Paul and >irkpatrick0 Colin 69:8 Privati.ation in less Developed Countries0 9S&Ed+0

%arvester ,heatshea0 Ne$ Gork

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Dorado0 S+ and ol.0 R+ 69::8 Privati.ation the core theories and missin( middleJ

International Revie$ o /dministrative Science Hol;F No+ F3 December 9:: 6?A- ;=?8 S/5E

Publication0 *ondon+

'1eldstad "-%0 &un(odden B+ 6


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&he case Study o ,aste ana(ement at the City o Dar es salaam0J .umbe Published Report0

pp+ 9-@

Savas0 E+S 69:98 Intracity Competition bet$een Public and Private Sector service

DeliveryJ in Public /dministration Revie$ Hol+ A;0 No+ ; 6November7 December8 @9@ K @


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>inemo0 R+ and N(ilan($a0 N+ 69:::8 Research Report on problems o Development

*evy collection eorts in Irin(a District Council

Nsem$a0 ,+ 69::8 Eectiveness in Collectin( Revenue in *ocal /uthority0 / Case o

Produce cess in Ne$ala District Council3 B/ &hesis0 .umbe University

ACTS AN/ GOVERNMENT /OCUMENTS

&he 9:;9 *ocal 5overnment /ct

&he people#s *ocal 5overnment /ct o 9:@9

&he *ocal 5overnment 6'inance8 /ct No+ : o 9:

privatizing revenue collection in local authorities (first copy)

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