Chairperson, Deputy Minister, the Chief Whip of NCOP, provincial leaders and members, in the true spirit of the Freedom Charter, the ANC has introduced a system of local government as the antithesis to the previously racially fragmented local council. The 2000 municipal elections marked a fundamental transformation in municipal governance. The clause "The people shall govern" gained expression when this sphere was electively put in place for things to happen where we live.
The select committee, upon receiving the notices from the province of the Free State, immediately engaged in a trip to find out whether there was legislative and constitutional compliance in terms of the two municipalities. This was done to ensure that everyone is given a platform to express their views in terms of that section. On 24-25 February 2010, the delegation of the committee had this engagement. Amongst the other stakeholders that we met there were speakers, executive mayors, chief whips, administrators, ward committees, organised labour, community forums, Salga and business communities.
The main objective was the need to solicit an opinion and make to the House an informed recommendation for approval or disapproval of the interventions. Having evaluated and assessed various inputs as the committee, we therefore made recommendations to the House regarding municipal governance that has been found to be in shackles; service delivery that does not speak to the integrated development plans, which lack consultation and public participation and which do not address the needs of the people, and the national and millennium development targets which, we fear, might not be met in these two municipalities. It remains to be seen whether there will be an improvement or not in the local economic strategy of these municipalities.
Financial viability and management also constitute a challenge because they are punctuated by disclaimers of adverse audit opinions. The other issue that was looked into was the human resource management plans which we found were not in existence. The recruitment strategy was just haphazard and the issue of salaries were in disparity. There was a general lack of compliance in terms of those five key strategic local government agendas.
Therefore, the committee is of the opinion that, in terms of the recommendations to the Thabo Mofutsanyana District Municipality, Firstly, this Council should approve the intervention as issued by the provincial executive, as we found that it complies with the legislative and constitutional requirements.
Secondly, the administrator should fast-track the process of appointing section 57 managers as this is one element that will ensure that the municipality does return to normal.
Thirdly, the administrator should conduct a proper and thorough investigation and report to the MEC and the NCOP on the possible link between the resignation of the former municipal manager or any other form of misconduct that has since contributed to the current crisis in that municipality.
Fourthly, the administrator should also conduct a proper and meticulous reconciliation of payments on the litigation and legal costs of its debt collectors and attorneys so as to enable the municipality to avoid fruitless and wasteful expenditure.
Fifthly, the Free State MEC for Co-operative Governance and Traditional Affairs should table quarterly reports to the committee of the NCOP, in particular this committee.
Sixthly, the SA Local Government Association, in co-operation with the local government sector education and training authority, should facilitate training and capacity-building for municipal councillors to deepen their understanding of the oversight role, legal framework and financial issues.
Seventhly, the Select Committee on Co-operative Governance and Traditional Affairs, in co-operation with relevant portfolio committees in the Free State provincial legislature, should conduct a follow-up visit to this municipality within three months in order to monitor progress made in respect of the directives issued in terms of this intervention.
Chairperson, on the Nala local municipality: Firstly, the select committee recommends to the National Council of Provinces approval of the intervention as issued by the provincial executive council in terms of section 139(1) (b) of the Constitution, as we found that there is compliance in terms of the necessary procedures and constitutional requirements.
Secondly, the administrator should fast-track the process of appointing section 57 managers and assist the municipality in developing a labour retention strategy so as to ensure that social service delivery projects are not compromised.
Thirdly, the administrator should conduct a proper and thorough investigation and report to the Free State MEC and the NCOP on the alleged cases of misappropriation of funds in this municipality.
The MEC for Co-operative Governance and Traditional Affairs has to immediately reconsider the current appointment of the municipal manager, since the appointment is surrounded by and shrouded with allegations of corruption and maladministration. Let me just make a point: When the committee was busy conducting this engagement, the community nearly stormed the hall precisely because they did not want to see the municipal manager. We are not making an implication, but we are saying there are serious issues that need to be looked into around that position. The administration should ensure that individually reported cases to the SA Police Service are changed to municipal cases. There is evidence in this regard of forged cheques of about R650 000 with signatures of people that need to be investigated.
The Free State MEC for Co-operative Governance and Traditional Affairs should table a quarterly report to the NCOP and the Free State provincial legislature on the status of the intervention and the progress thus far. The SA Local Government Association, in co-operation with the local government sector education and training authority, should facilitate training and capacity-building for municipal councillors to deepen their understanding of the legislative environment. The SA Local Government Association should further facilitate executive training programmes for municipal officials.
The Minister for Co-operative Governance and Traditional Affairs should institute an independent forensic investigation into all the financial affairs of the Nala local municipality, including, amongst others, the companies that are alleged to be ghost companies, which means they are doing the work but they do not exist. The committee further proposed that there should be a mechanism in place that would assist to track the resolution and decisions taken and table them in the House within three months. This will ensure that things are done differently - faster, smarter and harder.
The approved report by the NCOP should be shared amongst both internal and external stakeholders as there is an outcry that Parliament does visits but there is no feedback. The Select Committee on Co-operative Governance and Traditional Affairs, in conjunction with relevant portfolio committees in the Free State provincial legislature, should conduct a follow-up visit within three months after interventions have ended.
The National Department of Co-operative Governance and Traditional Affairs should introduce legislation to regulate the implementation of section 139. Chairperson, the emphasis here is that there is no homogeneous application of this section. We find different applications of the same matter. Therefore, we sincerely motivate that legislation be put in place that would help to produce either a manual or guidelines to procedures.
In conclusion, Chairperson, let me take this opportunity to thank members of the House, hon members of the committee, the Chief Whips for their guidance, the leadership, the Chairperson and the Deputy Chairperson, and the support both directly and sympathetically from this House. I thank you.
Debate concluded.
Question put: That the Report on Oversight Visit to Nala Local Municipality in Free State be adopted.
IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Report on Oversight Visit to Nala Local Municipality in Free State accordingly adopted in accordance with section 65 of the Constitution.
Question put: That the Report on Oversight Visit to Thabo Mofutsanyana District Municipality be adopted.
IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limopo, Mpumalanga, Northern Cape, North West, Western Cape. Report on Oversight visit to Thabo Mofutsanyana District Municipality accordingly adopted in accordance with section 65 of the Constitution.