IMPROVING LOCAL AUTHORITIES IN SABAH:
An Overview

 HILMI HAJI AB RAHMAN
WORRAN HAJI KABUL
MAT ZIN MAT KIB
Universiti Teknologi MARA
Cawangan Sabah Kampus Kota Kinabalu

INTRODUCTION 

This paper is neither exhaustive nor exclusive. Rather, the paper tries to shed some overviews on current position of local authorities and some means to improve it. To fulfill this, the paper is divided into three parts. The first part discusses the various background of local authority with references on local authorities in Sabah. Part two discusses the positions of local authority and the last part discusses some means how local authority improves it position and functions in strengthening its position as the “front office” of both governments, i.e. the federal and state governments. 

LOCAL AUTHORITIES IN SABAH 

In most countries, urbanisation rate correlates directly with economic growth (Rustam, 1995) pushing local authorities to play their role to the optimum. In a report by the Ministry of Housing and Local Government Malaysia in 1988, 68 per cent of the population in Malaysia live in local authority areas and make demands upon urban services (Ministry of Housing and Local Government, 1988). Similarly, in Sabah, population and economic activities are very much concentrated within the perimeters of a few towns and cities like Kota Kinabalu, Tawau and Sandakan, forcing new challenges onto LAs. This entails new demands in capacity and capability on LAs. As a result, as Davey (1993), opines the role of LAs in managing urban growth centres cannot be taken lightly in the context of prevailing situation. In fact, LAs must be prepared for modifications in meeting new challenges related to growing demands and developments.

The prevailing system of local authority in Malaysia in general and Sabah in particular are deeply British, either in objectives and style (Norris, 1978). Historically, Penang became the first local government in Malaysia (Phang, 1989). As the belief that British need to become closer to the colony, various attempts were made to make control more local in nature. One of such attempts was to spread the notions of local authority in other parts of Malaysia. Local councils were later created in Malacca including those in Sabah and Sarawak.  In the state of Sabah, the modern day local government grew out of the need of the former colonial power maintaining their control over the colony. In order to be more “public” in nature, the British has created a system known as native chiefs (Kitingan and William, 1989). The main aims were to maintain order and improve village administration.

In Sabah, there are twenty-two local authorities. There are three larger ones, namely Kota Kinabalu City Hall, Tawau Municipality Council and Sandakan Municipality Council. Besides them, there are 18 local authorities and one town board.  The creation of these local authorities was made possible as a result of Local Government Ordinance 1961 (Sabah No. 11 of 1961). Each of these local authorities has instruments and by-laws, e.g. Instrument and By-Laws of Sandakan Municipal Council & Instrument and By-Laws Beaufort District Council. A major departure from these instruments and by-laws, local authorities in peninsular, on the other hand, are governed by Local Government Act 1976 (Act 171). As far as Sabah is concerned, Kota Belud, is the oldest local authority where it was created in 1952 and followed, three years later by Sipitang. As a result, since 1961, all districts in Sabah have their own local authorities.

As opposed to the creation of federal and state governments, the creation of LAs, is solely based on ordinance and acts, making it “authority without authority”, as opined by some scholars, as for example Phang, (1989). This opinion is based on the means where the local authority is not selected through election but rather, through Section 2 (Establishment of Local Government Authorities), Item 3 Local Government Ordinance 1961 (Sabah No. 11 of 1961), which “subject to the provision of the Ordinance the Yang di-Pertua Negeri may by Instrument published in the Gazette establish such district councils, town boards, or municipal councils in any part of Sabah as he may think necessary or expedient for the purpose of local government”. This, however, does not diminish the capacity and capability of local government to exercise its power, especially in its control of rates collection and others. It is evident, especially Malaysian constitution accords local government as a level of government (Phang, 1989). Clarke (1969) reiterated that local government is a functionary of the government at work. As far as Sabah is concerned, the present ordinance mentioned above and as reflected by Phang (1989), local government is an entity created by a state.  

POSITION OF LOCAL GOVERNMENT IN ADMINISTRATION 

In Malaysian setting, similar to statements by Norris (1980), local authorities is the third level government. By definition, local authority is local. This definition entails a government which is strong and powerful due to its close proximity to its citizen or “rakyat”. The local authority is also the “front office” of both federal and state governments. Its duties largely centre around people’s daily concerns like flood negotiation, rubbish collection, roads and sewage maintenance. If the local authority could serve and overcome these concerns, elected members of government, either the state legislative or parliamentary members’ job are made easier. A case reflected by Langkawit in his usual cartoon strip appearing in one of leading newspapers could translate the reduced predicaments of these elected members of government (Daily Express 7 May 2006).

By and large elected members’ jobs are simplified and their future is very much dictated by local authority’s actions. Similarly, should local authorities fail to discharge their responsibilities, the burdens are shifted to elected representatives of either branches of governments, i.e. federal or state representatives.

In terms of local authority-state government relationship, its closeness is reflected by various complementing and supplementing actions by both parties. Enactment of by-laws by local authorities, for example, is activated by legislative decisions. Financially, local government gets provision from both levels of government, i.e. the federal and state governments.  In Sabah, all but one (Dewan Bandaraya Kota Kota Kinabalu) are under various jurisdictions of Ministry of Local Authority and Housing. To a larger extent, LAs are, indeed, the main machinery for realization of governments’ aspirations and inspirations.  In many cases, local authorities try to translate the governments’ initiatives, in the case of Sabah for example, certain local authorities organize “tamu”, entrepreneurial activities, such as “anjung selera”, anjung senja and “Persiaran Sidik” in Kudat. Besides these routine needs and demands, LAs are also facing new challenges and demands. The recent incidence of SARS, HFMD, drugs addiction, safe cities, delayed construction of houses, floods, extortion, social problems among youth are new areas the need to be considered by local authorities.

Besides evident urbanization taking shape in most town centres, notion of poverty within them (Economic Planning Unit and Department of Statistics, 2004), though not alarming provides added responsibilities to local governments. The rise of urban poor, for example needs a special policy to alleviate the problem. As opined by a report on Ninth Malaysia Plan, the number of urban poor household has risen by 6.4 per cent chiefly due to the rise of in urban poverty in the state of Sabah (Economic Planning Unit, 2006). As a result of expansion in urban-based economic activities, the rural-urban divides widens. Urban population has increased from 14.57 million or 62.0 per cent in 2000 to 16.85 million or 63 per cent in 2005 (Department of Statistics, 2006).  Efforts need to be put to ensure that urban dwellers enjoy a higher quality of life and urban centres are more habitable (Economic Planning Unit, 2006).

Though the rise of non-fixed citizens of the local authorities is not documented, the town and city dwellers provide new challenges to the current organizational setup of some local authorities. Though silent majority (non-joiners) are not interested (Kamarulddin, 2001),  as Phang and Nooi (1989) noted, four general features of participation of residents in relation to local government governance initiatives, such as consultation, direct involvement or power sharing, community action and community self-management. However, as opined by Kamaruldin (2001), participation is very much in the form of advocacy participation where the people involved are more interested about the end, but not the mean. As a result, where participation is hugely required, the power of law needs to be acquired. 

In the Malaysian Act on Local Government (Malaysian Government, 2002), participation is derived from the means of law in the form of “from amongst persons the majority of whom shall be persons ordinarily resident in the local authority area who, in the opinion of the State Authority, have wide experience in local government affairs or who have achieved distinction in any profession, commerce or industry, or are otherwise capable of representing the interests of their communities in the local authority area” (Malaysia 1976). Absence of participation is not only on the part of residents, officers of local government also at times reflect cautious and non-committal (Kamaruldin, 2001).  

TOWARDS IMPROVING THE EFFECTIVENESS OF LAS IN SABAH 

It is true as reenacted by the former premier of Malaysia in 1995, where he said, “we need to look into new ways and means to improve and enhance the capability of our public service” (Mahathir 1995). Change, is inevitable (Naisbett, 1982), however is not easy (Klein, 1985). Though, change may take place in several ways, such as “bottom-up”, “middle-outward” or “top-down” (Greiner, 1967).  For local governments to remain relevant, improvements are required in many areas. Understanding customers values (Fulmer, 2000) is an important aspect for local authority to consider. New thrusts especially thrust number five suggests that efforts need to be made to promote better governance of local governments (Economic Planning Unit, 2006). In this paper, some insights are needed to promote better governance in the authorities. Though the list is not conclusive, certain element of focus is certainly prudent. 

1                    Appointment of councilors. Appointment of councilors attracts people’s attention. On one hand, suggestions that councilors’ appointment should be generated from professionals and academics to improve public’s acceptance and respect. On the other hand, origins of candidates do not matter much as long as potential candidates are able execute duties and uphold responsibility in their best possible manner. 

2                    Personnel systems. Currently, employees are recruited internally, where major sources of recruitment are from within the system. On one hand, the system promotes internal promotion, clearer career path and maintenance of good employees. However, the system breeds conservatism and insularity. As noted by Phang (1989) open recruitment system could allay some shortcoming in its process. In relation to expanding expectation on roles, functions and tasks of local authorities, training and development of employees are therefore obligatory. 

3                    Promotion of employees’ image in terms of value and discipline. Recent reports on untoward behaviours and actions of certain employees tarnish the image of local authorities.  These actions and behaviour, to a certain extent, do not reflect the real image and competence of local authorities and the governments. These resultant effects will further erode trusts and confidence of the public on local authorities. 

4                    Improving public participation in the governing of local authorities. A very important aspect of local authority’s capacity is the capability of the local authority to attract public’s participation (Phang, 1989). Though, it is easier said than done, various aspects of public’s participation should be promoted and encouraged. The awareness of public’s participation could happen in many ways. In a majority of literature, public’s sphere of awareness could be developed through four scopes, such as consultation, direct involvement, community action and community self-management.  

Consultation for example, among other things, local authorities should identify and seek public response on many issues. Direct involvement (or power sharing) is a system where community assumes the full membership in decision making processes of local authorities. Community actions on the other hand, suggest that local authorities should promote various groups in the community to put forward demands and needs. Finally, community self management. In this respects community self-management is community empowerment where local authorities encourage communities to directly or indirectly own projects and activities. Realisation of Section 4 (Meetings and Proceedings of Authorities Meetings), Item 18 Local Government Ordinance 1961 (Sabah No. 11 of 1961) i.e. “every meeting of an Authority and of a divisional committee appointed established by an Authority under this Ordinance shall be open to the public and the press.  Provided that nothing in this section shall apply to any committee appointed by an Authority or to a committee of the whole Authority or to any sub-committee of an Authority” could be utilized to reflect further participation from wider perspectives. 

5                    Formulation of by-laws. It is a common knowledge among citizens, formulation of by-laws in local authorities tend to be “top-down”. This approach of decision making reduces ownership of by-lays where citizens do not “buy” the idea. As mentioned by Kamaruldin (2001), types of participation should be limited to only advocacy, but beyond. Towards this end, enactment of by-laws should be made more customer-based though in a different approach.

6                    Improved enforcement. This is an area which local authorities are lacking. As a nation, Malaysia has in fact many set of laws and by-laws to deal with different situations. The prevalence of law however is not properly filtered down in terms of implementation and enforcement. As mentioned by Lester and Stewart, (2000), implementation of policies is often left unattended. Though the formulation and passage of policy are hard, its implementation seems to be harder and predominantly absent in many instances. In line with emphasis on development of quick delivery of service, quality and quantity of employees, especially in local authorities enforcement unit needs to be taken seriously. Enforcement as noted in the report on the Ninth Malaysia Plan should be focused on preventing action, remedying any wrongs, punishing wrongdoers to deter others, effective action and cooperation among and between regulating agencies (Economic Planning Unit, 2006). 

7                    Definition and determination of roles and functions of  local authorities. According to Nalbandian (1999), present day local authorities have departed from their traditional roles and functions. Among other things as noted by Nalbandian city managers are entrusted to promote community building, facilitate participation, less adherence to the “one best form of government” and less administrative based local government. Local authorities are moving away from property based to human based where less importance being accorded on certain property construction (such as roads). Local authorities are giving more attention to other human aspects of development like fulfillment of needs for recreation, culture, housing, welfare, public safety, drug abuse and others. Throughout the years, community needs for improved standards, demand for new services in meeting the needs of community, increased assets’ refurbishment and impact of cost-shifting (see also Abdullah, 1980, Phang, 1989 Azhari, 1991 and Reid, 1999) has made local authorities to review some of traditional roles and functions. Even, emergence of new responsibilities given by other parts of government, enlarged standards, increased community expectation and policy choice on the part of local authorities have brought about greater challenges to traditional roles and functions of local authorities. The time has arrived for Sabah’s local authorities to ascertain their fundamental niche to fit the roles and functions entrusted on them. 

8                    Coordination among various governmental entities including local authorities is still at the lowest ebb. This is an area that need to be looked and considered. In public policy making, where formulators are different from the implementers, care need to be taken seriously (Lester and Stewart, 2000). Similarly, the belief that government sponsored initiatives seldom achieved their objectives (Derthick, 1970) should be given ample attention. The case will bore larger effect when it involves a bigger number of collaborators. 

9                    Emergence of new challenges, however does not disqualify local authorities in attending to their traditional roles and functions. Local authorities are not to abandon their roles in providing traditional services such as collection of garbage, cleanliness of public places, collection of taxes and rates, and maintenance of main roads. In some other situation, local authorities are required to look after water supply and maintenance of sewage (like Zahari, 1991). Demands on these traditional roles and functions have in fact increased throughout the years. City dwellers and other citizens of the cities are questioning benefits of certain public services (such the people of Perth City, in particular). Though some tasks could be transferred to some other entities, certain services have to be maintained by local authorities. Presence of “non-fixed” citizen has made local authorities tasks even harder. These group of residents or rather citizens, though not officially registered as city citizens have put tremendous pressures on local authorities in executing their duties. The groups like tourist (though short term in many ways), frequent visitors of cities and unregistered citizen have out-stepped predetermined goals and duties of local authorities significantly. To counter all these, local authorities are therefore required to measure existing needs and future demands to enable them meeting the actual needs and demands that are being put onto their shoulders, i.e improving traditional operation of local authorities and take on board various opportunities therein.  

10                In some cases privatisation entails nightmare to some local authorities. But in a larger perspective, privatization and corporatization of services reduces demand on employees and finance of local authorities. Benefits of privatization (Hossain  and Malbon, 2002) and costs of it (Ghosh, 2000) should be properly weigh in light of competing demands. 

11                Efficient expenditure of local government especially through the optimization of revenue collection. In some instances, some local authorities are spending exceeding their allocated budgets. For example in a report by Ketua Audit Negara on Financial statement of District council of Sipitang for the year ended 31 December 2003, the LAs has spent beyond its budget for more than RM69,588.00. In the case of revenue collection, major breakthroughs are needed. Revenues are needed to finance local authorities’ roles, activities and functions. In the last recorded reports of some local authorities, failure in revenue collection is very much inherent. The failure has basically reduced most of the revenue generated. In the last audited report by Auditor General on Financial reports as of 31 December 2003 of Sipitang Local Council, there are bad-debt of  RM149,844.00. In another report by the same Auditor General concluded that for Tawau as of 31 December 2002, there were RM8,843,474 uncollected. As for Penampang, the auditors’ report showed that there are RM4,864,591 uncollected. These accrued figures, when managed to be collected will help council considerably. 

12                Improve local authority’s “speed”, “efficiency” & “effectiveness” “delivery system” in terms of customers’ charter. In a study by Ministry of Housing and Local Government of Malaysia conducted in 2004 focusing on customer needs such as ratepayers, residents, investors, real estate developers, traders and non-governmental organizations, recommendation was given (Economic Planning Unit, 2006) made a conclusion that local authorities should also give focus on long-term solutions. It is suffice to say that, consumers should be properly ascertained in terms of their needs and wants. In the midst of these wants and needs there are also situations where some consumers are badly affected by certain action and some are only barely. 

CONCLUSION 

Roles, functions and responsibilities of LAs that are diverse due to existing provisions, increased expectation, devolution, rising demands, cost-shifting and policy choice. More so effects are different distributed especially in meeting the non-fixed “rakyat”. To harness the potentials of local authorities, reduction of overlapping and duplicating tasks, roles, duties, and others require earnest attention. To actual these, optimization of new opportunities and challenges in terms of management and administration are without alternative. As everybody knows there are no two local authorities in a location. The sum total of all these reflects heavily on the governments, either federal or state. In the era of globalization, the essence is basically ability to compete and survive.  Good corporate governance is a warranted necessity (Hilmi, 2004) and the capacity to compete is very much based capabilities to articulate (or circumvent) competitions (Drucker, 1986). Local authorities as stewards and guardians of  stakeholders’ interest are encouraged to adopt the following words of  YTL’s Managing Director, Tan Sri Francis Yeoh “we owe a great deal to our faith and this beautiful country and the leaders for allowing us this liberty. For any delivery systems to work, there must be commitment.  A system is only a framework for action. In [our company], we feel we hold the company on trust – for the next generation and the generations to come. There is for us all an even higher trust”.