Assessing The Capacity Of Property Rating Institutions And The Potential Of Property Rates For Local Governance Financing In The Wa Municipality And Nadowli/Kaleo District

ABSTRACT

This study explored the capacity of property rate valuation institutions at the level of Metropolitan, Municipal and District Assemblies (MMDAs) and its effect on the potential of property rates for local governance finance in Wa Municipality and Nadowli Kaleo District. Methodologically, data was collected from the Municipal Valuation Office, Municipal Assembly, Nadowli-Kaleo District Assembly, Non-exempt Real Property Owners, and Rate Collectors. Intuitive method was relied upon for the sample size determination since records on the number of real property owners in the study areas were not available. Key informant interviews, surveys and focus group discussions were employed to collect the data. The findings included; a very low capacity of the rating institutions to execute their mandate when it comes to property valuations. Their incapacitation has been partly due to inadequate staffing and logistics. Political interference, lack of funds and non-cooperation from rate payers were also found to be challenges that confront the institutions. Couple with the low capacity and challenges of the mandated institutions, however, a high non-compliance rate were discovered to have downplayed the potential of property rates for local governance finance in the region. The high non-compliance rate or public disdain for property rates was attributed to lack of transparency and accountability, corruption, absence of basic infrastructure and services and non-enforcement of the Act 462 of 1993 against defaulters. The research found that these institutions could be effective and efficient in the execution of their mandate if more professional staff is employed and their logistics improved. Revenue generated through property rates should be used in visible projects and accounted for by officials of the assemblies in order to encourage future compliance.