WC Department of Local Government on Quarterly Reports & status of all Section 106 investigations at municipalities

Meeting report

Opening remarks by the Head of Department: WC Department of Local Government

Mr Graham Paulse, Head of Department: Western Cape Department of Local Government, said there is still the issue of ongoing drought, so the Department is assisting where it can. The Department supported the Northern Cape through a water augmentation initiative. The West Coast District municipality provided the water free of charge, and the Coca-Cola Company transports the water.

The Department plays a role in the ongoing response to COVID-19 at municipal level, and this is ongoing work. He also mentioned the recent fires and its impact on the Department’s work. Service delivery to municipalities must continue in the middle of all this. The Department received some complaints from citizens regarding service delivery.

There are governance as well as financial challenges, especially around COVID-19 initiatives.

The Department must shift its focus to the upcoming local elections and this is a difficult task.

There are more and more whistleblowers coming forward to the Minister, indicating alleged incidents of corruption and maladministration in municipalities. There is huge pressure to get the investigations done and completed. The Department works very closely with the Special Investigations Unit (SIU) and the HAWKS. There are preliminary discussions around the creation of a Municipal Court. With regards to cases under discussion, some are still sub judice, meaning these cases are still under investigation, so the Department cannot go into too much detail.

2nd and 3rd Quarter Performance: WC Department of Local Government

Mr Albert Dlwengu, Director: Policy and Strategic Support, Western Cape Department of Local Government, said the Department had a total of 60 indicators to report on. 14 of these are sector performance indicators, meaning it is determined at the national level. Two of the indicators are related to administration. The remaining 44 indicators are line functions. This is the actual work done by the Department.

Quarter Two Performance: July 2020 – September 2020

There are 21 indicators due for reporting in the second quarter. 18 of these were achieved. That amounts to an 85.71% achievement rate.

One indicator was partially achieved. This indicator was the sector performance indicator which speaks to the number of municipalities supported to maintain functional ward committees. The target was ten and the Department achieved four.

He said there were two indicators not achieved. The one indicator speaks to the number of training programmes to improve fire and life safety in the Province. The target was two, and none were achieved.

The second indicator spoke to the number of training programmes to improve emergency and special capacity capability in the Province. The target was one, and none were achieved.

Quarter Three Performance: October 2020 – December 2020

He said 20 indicators were due for reporting in the third quarter.

He said 18 of these indicators were achieved, amounting to 90%. One indicator was partially achieved. This indicator spoke to the number of services accessed through the Thusong Programme. The target was 250 000, and 117 732 was achieved.

One indicator was not achieved. This indicator spoke to the number of training programmes to improve emergency and special capability in the Province. The target was one, and none were achieved.

See attached presentation for the detailed quarterly performance per programme

Discussion

Mr A van der Westhuizen (DA) said he always finds the setting and reporting of targets an interesting exercise. He noted concern about the target-setting process. It seems the tasks appear to be an abuse of the budgeting process. Budgets are meant to be a guide. He wanted more information regarding the deviation of senior management assessments. He was under the impression this was a prescribed process, and in the past the Western Cape did extremely well in achieving this indicator. He asked what the Department’s plans to achieve the target are.  

He said 22 of the 24 municipalities were monitored according to the Municipal Infrastructure Grant (MIG) funding. He wanted to know about the impact of the move from MIG to the Integrated Urban Development Grant (UIDG), for Stellenbosch and Drakenstein. He said these municipalities share a similarity with rural municipalities, which have more than one town which needs to be serviced along great distances. Its infrastructure needs are more in line with rural municipalities than urban areas. He asked what it will mean for those local governments in the Western Cape, and if there is more funding for the two municipalities, regarding MIG funding.

Ms M Maseko (DA) wanted to know about Disaster Management, Readiness and Response. Some municipalities are saying the delay in implementation of the Disaster Readiness Plan is caused by Environmental Impact Assessments (EIAs). She said the Department of Human Settlements needs to implement de-densification, but this is delayed by the EIA. She asked if the Department engages with the Department of Environmental Affairs regarding EIAs, and to what extent the Department cut red tape when it comes to EIAs.

Ms N Makamba-Botya (EFF) asked about Service Delivery Integration. The initial target was one million, but this was reduced to 500 000 due to lockdown regulations. In the third quarter, the target was further reduced to 250 000, however, only 117 713 was achieved. She asked what the Department did to ensure the target is achieved; and asked which challenges led to the non-achievement of the target in the third quarter.

Regarding Municipal Performance Monitoring, Reporting, and Evaluation, she wanted to know why there was no target set for the indicator, related to the number of reports providing insight into municipal status and functioning in the third quarter.

The Chairperson commended the Department for assisting the Northern Cape with the water augmentation programme. He wanted to know if there were any financial implications for providing this kind of assistance. He also asked about Municipal Courts. He wanted to know how those courts will be enabled to deal with additional matters not currently in its mandate; and what kind of training was provided to Municipal Public Accounts Committees (MPAC). He said it would be useful for the Committee to receive an indication of the finances spent per Quarter, per Programme, and what is spent in relation to what was budgeted.

Mr van der Westhuizen wanted to know about the Municipal Courts. He asked the Department to tell the Committee about the impact of the proposed auto legislation on municipal courts. He said his impression was the courts spend too much time on traffic law enforcement. He wanted to know if it was true these enforcements will be removed from municipal courts.

Responses

Mr Dlwengu said the target related to the number of assessments on senior management is a cumulative target. This means the target will only be achieved at the end of the financial year.  There is no deviation because the target is achieved by the end of quarter four. The indicator is demand-driven. Based positions become available in the municipality. Targets are recorded as it is achieved, not when due. This is why the narrative is so big.

The Department has gone through a very thorough process, and in most cases, it is difficult to set targets for demand-driven indicators.

Mr Colin Deiner, Chief Director: Disaster Management and Fire Brigade Services, Western Cape Department of Local Government, said the Department developed a disaster risk profile for the entire Province. The Department works with municipalities so it works with the profile, and includes it in its Integrated Development Plans (IDPs). The Department ensures the risk-reduction measures in the IDPs are acted on. It follows up where necessary.

In many cases, EIAs are needed to achieve the risk-reduction measures. There are special circumstances where one can shorten the period for an EIA. He said some requirements would have to be met. He made the example of the recent flooding in the Montague area. The area was continuously flooding, and the river silted up. Disaster Services were expecting imminent flooding. The Department was able to get the EIA in two weeks instead of the usual 70 days. The Department of Environmental Affairs assisted.

De-densification was a challenge in informal settlements. The Department is currently dealing with the situation in Du-Noon. De-densification is done on a case-by-case basis. It cannot do it if it is not especially necessary.

Regarding the support provided to Barrydale, he said the Province supports all the district municipalities in cases of major forces. Every year, the Department contracts about 24 aircraft, including helicopters, and fixed-wing aircraft. It provides all the necessary resources to Barrydale. He mentioned the Jonkershoek fire, which was the biggest fire this year. It was a good example of how resources are deployed when dealing with a major fire. The helicopters were modified to ensure there is no contact between the pilot and the other occupants.

Ms Nozuko Zamxaka, Chief Director: Integrated Service Delivery, Western Cape Department of Local Government, addressed the question related to the Thusong Programme. She said in the beginning of the lockdown, the Thusong service centres were closed. Some service centres were used as shelters. When the country went to alert level three, the Department engaged with the centres to ensure it is safe to re-open it. The Department also ensured there was no additional damage to the centres which are used as shelters. The Department started with the safe re-opening of centres after June 2020.

The Thusong programme did not have any outreaches because there were concerns around social distancing at the events. The Department developed a Thusong Safety Protocol which would guide the safe re-opening of Thusong outreaches. This was discussed with the Department’s service partners and the various government departments involved in the programme. It was agreed the outreaches would be rolled out during alert level one. The outreaches were rolled out in quarter three. The Department had to stop outreaches in December 2020, due to concerns around COVID hotspots at the districts. Initially, the reduction from 1 million to 500 000 was a reaction to lockdown regulations.

The Department also had cancellations due to COVID hotspots and this affected the ability to achieve the set target. Some departments had challenges when it came to the Thusong Programme. This will be the first time in ten years the target of one million is not reached.

The Department produced Civic Education videos, assisting people to better understand what local government is, as well as what a responsive citizen is. The video also showed how people can participate in the municipal processes, explains what a municipality is, and what the role of a ward councillor is. The Department found this approach equipped people to engage with councillors.

Mr Marius Brand, Director: Municipal Infrastructure, Western Cape Department of Local Government, said Stellenbosch and Drakenstein are defined as secondary cities, or intermediary cities, and are supported by the IUDG and not by MIG. This is because of the proximity to the City of Cape Town. There is also the likely high growth in population as well as an increase in backlog of house provision. Under MIG, Drakenstein used to receive R30-35 million. This financial year, it will receive R75 million. In the next financial year, it will receive R90 million. Furthermore, under UIDG, municipalities report directly to the national Department of Co-Operative Governance and Traditional Affairs (COGTA). This removes the reporting associated with MIG. He said municipalities prefer to be under UIDG.

Mr Kamal Makan, Director: Municipal Governance, Western Cape Department of Local Government, answered the question related to senior management appointments. He said the target of 12 was reached by quarter three.

He said when it comes to the MPACs, the Department looks at the composition of the committees, the attendance of meetings, and if the Committee achieves quorum. The Department also notes if the MPAC fulfils its functions related to the Terms of Reference authorised by the Council. According to Section 52 of the Municipal Finances Management Act (MFMA) the focus of the MPACs focus is wasteful, irregular, and fruitless expenditure.

Knysna Municipality asked the Department to come in and conduct the training, together with the South African Local Government Association (SALGA). The training was done 5 August 2020. He said the Department monitors where there are capacity challenges, via assessment, and reaches out to the municipality, and helps.

Mr Brand said Stellenbosch and Drakenstein report directly to COGTA, but it does not mean the Department is not playing its role, and there is no oversight of provision of infrastructure and service delivery in those two municipalities.

The Department conducts assessments on a bi-annual basis and reports on the status of infrastructure and service delivery.

Mr Nabeel Rylands, Director: Municipal Performance Monitoring, Western Cape Department of Local Government, answered the question regarding reports which give insight into how municipalities function. Currently, the Department develops the reports on a bi-annual basis, using the Western Cape Monitoring and Evaluation System. This report informs the Department’s support initiatives and capacity-building efforts, and provides guidance as to where possible interventions are required. Due to the dynamic nature of the municipal space, the Department decided it will be developing the reports on an annual basis, going forward. This will be implemented in the new financial year.

Mr Paulse answered the question regarding the water augmentation initiative which assisted the Northern Cape. He said the initiative was done free of charge. The water was taken from Vredendaal.

The agreement was, the Municipal Manager would write off the cost of transporting the water. He said there were three tankers of 30 000 litres each, per day, over a period of a month and a half. If the Northern Cape wished to continue with the initiative, it would be at its own cost. He also said boreholes were refurbished.

With regards to municipal courts, the Department is currently in the process of formulating a document which will be sent to the Department of Justice. The document will entail how to expand the roles and responsibilities of municipal courts to deal with some local matters. He said this is still at the preliminary stage.

Ms Makamba-Botya wanted to know why there is no target related to municipal performance monitoring, in the third quarter. She asked the Department to provide the Committee with a report on the readiness of Thusong centres in all municipalities, so the Committee knows it is at least operational. She said the report is being requested even though the target will not be met this financial year.

Ms Maseko asked the Department to give the Committee the civic education videos broadcast at Thusong events.

The Chairperson said it requested the videos from the Department in the past, but never received it. He wanted to know what measures were put in place to monitor if municipalities rolled out the training to the various ward committees in its jurisdiction.

He wanted to know to what extent the Department capacitates or trains farm workers in firefighting capabilities, to act as additional first responders when fires break out in rural areas.

Mr Rylands said the Department currently reports on the Integrated Assessments on a bi-annual basis. The Assessments provide a status of municipalities, regarding governance and service delivery. These are provided in the second and fourth quarter, and not in the third quarter.

Ms Zamxaka said she has a soft copy of the video and will make this available to the Committee. She said the material was provided to municipalities, and the Department had conversations with municipalities about how it will be rolling it out. The videos are played during the Thusong outreaches, so the events are interactive. The state of readiness of the Thusong centres was sorted out in the month of May and June 2020. The only difference is some departments are not participating as fully as pre-lockdown. She said the centres are fully operational. The outreaches were cancelled when the country moved from alert level one to alert level three.

Mr Deiner said the Province has Fire Prevention Associations (FPAs) which are governed by the Veld and Forest Fires Act. The Act requires landowners to have the necessary fire protection within his/her land. These FPAs were established all over the Province. The Province also has the Western Cape Fire Protect Association, which manages all the groupings. These associations form part the Western Cape Integrated Wildfire Management System, which is co-ordinated by the Department. Part of the system includes training and preparation. Most of the FPAs are farms. He said most of the training happens at the FPA level. The formations are very strong, for example, the Garden Route FPA (Southern Cape FPA), which provides bursaries to one or two people to study forestry at Nelson Mandela Metro University.

S106 investigations

Mr Gary Birch, Director: Specialised Support, Western Cape Department of Local Government, said the Department receives numerous complaints and allegations of mismanagement, fraud, and corruption happening at municipalities.

He said it should be noted, the specific statutory provisions governing the duties and responsibilities of the Municipal Council, Speaker, Executive Mayor, and Municipal Administrators must be complied with irrespective of the submission of allegations to the provincial government.

Allegations are generally received from members of the public, aggrieved persons who tendered, and applicants for posts, councillors, and officials. A significant portion of the complaints and allegations relate to duties and functions which fall within the oversight of the municipality.

Regarding allegations received, the MEC for Local Government addresses correspondence to the Municipality, affording it an opportunity to reply to the allegations, as envisaged in Section 5 of the Western Cape Act.

He said it is important to note those dealing with allegations are not politically affiliated. As such, it is required for these persons to assess the allegations without fear, favour, or prejudice.

He gave an update on the current s106 investigations. In the Bitou municipality - the Municipality appointed an attorneys firm to develop the process, replying to the provincial investigation issued, and attending to the findings and recommendations contained in the report. He said a copy of the Section 106 report was given to the Hawks. A further progress report is expected shortly from the Municipality, on recent developments.

George Municipality received a s106 investigation, issued in Parts A, B, and C. The report was handed to the Municipality in early 2020. Council resolved to deal with the recommendations in the report. Copies of the s106 report were handed to the Hawks. He said several persons implicated in the investigation were summoned to appear in court on 9 October 2020 after the Hawks concluded the investigation, with the benefit of the s106 report. A further s106 report which started in 2020 is ongoing.

In the Central Karoo District Municipality, the s06 investigation was completed, with findings and recommendations handed to the Municipality. The Council considered the report together with the internally commissioned report on 12 November 2020, and resolved to adopt the findings and recommendations of both reports. It indicated the Acting Municipal Manager must deal with the latter. The Municipal Manager provided regular updates. A copy of the s106 investigation was handed to the HAWKS.

In September 2020, the s106 investigation began in the Matsikama Municipality. The Municipality refused to provide the independent investigators with documentation, or to allow officials to be interviewed. A criminal docket was opened resulting from the conduct. The Municipality sought an interim interdict suspending the investigation, pending a resolution of an intergovernmental dispute. The Provincial Minister brought a counter-application, requiring the Municipality and all those working under it, to comply with the investigation immediately.

The Municipality has since abandoned its initial relief sought, and now seeks to review and set aside the Provincial Minister’s decision to appoint the s106 independent investigators. The main and counter argument were heard on 1 March 2021, and judgment was reserved.

Discussion

Mr van der Westhuizen wanted to know what the complaint on each case was, or what the purpose of the investigation was. He requested Mr Birch to be more specific, because he said he was making general statements. He said the information, as is, is of no value.

Ms Maseko mentioned the idea of a debt certificate which would be attached to the responsible official, and thereby prevent people from resigning and grabbing the pension fund.

Ms Makamba-Botya wanted to know when allegations are deemed unsubstantiated, and the case is then not further investigated.

Mr Birch suggested sharing the s106 investigation so the details of the complaints can be seen by the Committee while protecting confidentiality. With regards to the general statements, he said the cases are public knowledge.

When a Council is unable to achieve quorum for a meeting, it is fair to make those statements regarding the specific circumstances. 

When the Department is unable to substantiate allegations, and indicate on what basis the investigation must happen, the investigation is suspended.

Mr van der Westhuizen said he was not happy with the response to his question. He wanted specifics. He said he struggled to understand why the Department was reluctant to share the information. The public has just as much right to the information.

Ms Maseko said it is important to co-operate. If there are cases which are sub judice, then this can be indicated. However, the information needs to be shared.

Mr Paulse said the Department is treading carefully because some of the matters are still in the courts, but it will engage with the Committee going forward.

Adoption of Committee Documents

The following Committee documents were considered and adopted:

• Committee Meeting Minutes: 2 February 2021.
• Committee Report: 12 February 2021 - Site Inspection

Resolutions

The Committee requested a copy of the civic education video. It also requested a full report from the Department reflecting all Thusong centres are operational at all municipalities.

It requested the Department provide a record of all the services offered by the Thusong programme.

The Committee requested legal advice regarding if the nature of the complaint should be withheld from the public.

The Chairperson thanked everyone.

The meeting was adjourned.