Thank you very much, once more hon Chair that I present this second report in terms of the oversight visit that we conducted in KwaZulu-Natal last week. The Select Committee on Co- Operative Governance and Traditional Affairs, CoGTA, having regard to the notice of intervention invoked in the Richmond Local
Municipality in KwaZulu-Natal Province in terms of section 139(1)(b) of the Constitution, embarked on an in loco inspection visit to the Richmond Local Municipality in KwaZulu-Natal on the 14 August 2019.
The multiparty delegation consisting of the ANC, the DA, the EFF and the IFP, interacted with the MEC responsible for CoGTA in the province and the different stakeholders who includes the labour, the business, the farmers, the traditional authorities in the province, as well as the administrator appointed by the department to speed up the implementation of the approved recovery plan and turnaround for the overall improvement of the state of governance in the Richmond Local Municipality.
The department as well as the representatives of the internal and external stakeholders within the jurisdiction of Richmond tabled and presented their views and opinions on the invocation of the intervention in the municipality. The MEC of CoGTA reflected on the current state of affairs in the municipality, in terms of good governance, service delivery, infrastructure development, financial crisis and all related challenges which are impediments to the functionality of the municipality.
In addition, the MEC presented the investigative work which was conducted by the department in terms of section 154 of the Constitution, in terms of giving support, monitoring the municipality and strengthening the capacity of the municipality. To that extend, they identified that the municipality was dysfunctional. There were divisions within the political leadership of the municipality which had trickling effects to the staff as well as the community of Richmond.
Equally, the MEC presented to us steps that the department undertook in terms of ensuring that they stabilise the situation. He also gave us the terms of reference of the administrator which primarily focused on improving the performance of the municipality and turn it around.
Our observations as the select committee, we noted that the municipality was not adhering to the procedural and constitutional matters as stipulated by the department and the necessary legal prescripts. We also noted the fact that, yes, the MEC and the provincial executive council accordingly notified the Minister of CoGTA within 14 days of the invocation of the intervention in the Richmond Local Municipality.
The Minister of CoGTA at national level approved the intervention within 28 days as prescribed by the Constitution. The Chairperson of the NCOP was accordingly notified of the intervention on the 29 March 2019. In terms of the back to basics programme, the municipalities is categorised as financially dysfunctional. It is thus one of the municipalities in the country that are struggling to deliver on their role and mandate as it is financially stressed.
The CoGTA MINMEC resolved to prioritise this municipality and other municipalities that are regarded as financially distressed and dysfunctional and identified practical and sustainable support and intervention measures. The select committee has further noted that the MEC of CoGTA in KwaZulu-Natal met with the municipal council on the 20 March 2019, to advise the municipal council of the decision of the provincial government to intervene in the municipality.
Furthermore, this select committee has observed that the MEC of CoGTA has appointed a ministerial representative who has prepared a recovery plan which was approved by the municipal council. This recovery plan focuses on the three critical areas namely; good governance and institutional development, financial recovery as well as service delivery matters. On the implementation matters, the select committee has noted that the Department of Cogta co-ordinates
monthly steering committee meetings to monitor the implementation of the resolutions of the government and to co-ordinate support to the municipality.
Members of the steering committee include representatives of the national Department of Cogta, provincial Treasury, SALGA as well as other sector departments. Despite the progress made in respect of the implementation of the intervention, the select committee has noted with concern, the allegation of corruption of fallout maladministration and misuse of municipal vehicle, slow pace in handling of disciplinary cases, misleading of council by senior officials, non-completion of infrastructure projects as well as non- implementation of municipal council resolutions.
Based on the above situations, we placed the following recommendations for consideration by council. The NCOP approves the intervention in Richmond Local Municipality in terms of section 139(1)(b) of the Constitution. The KwaZulu-Natal MEC for CoGTA should table the forensic investigation report in terms of section 106 of the Municipal System Act to the NCOP, after tabling it to the Richmond Municipal Council.
With regard to consequence management, all cases of unauthorised expenditure incurred by the municipality should be investigated to determine if any person is liable for the expenditure, as required by section 32(2)(b) of the Municipal Financial Management Act.
The KwaZulu-Natal MEC for CoGTA in collaboration with the national Minister of co-operative governance should provide continuous support in terms of section 154 of the Constitution.
The administrator should review the best municipal financial recovery plan and ensure that there is alignment of the findings and concerns raised by the Auditor General. The administrator should ensure the fast-tracking of the process of the disciplinary hearing of the suspended municipal manager on allegations of fraud and corruption.
The administrator should focus on the implementation of terms of reference and facilitate visits to performing municipalities in order to learn best practices and sharing of knowledge.
The administrator should provide quarterly reports to the select committee regarding progress made on the implementation of the intervention in the municipality. The Richmond Station Commander
should provide a list of all cases of fraud and corruption that opened by the municipality, as well as their status and their actions taken.
This select committee, in co-operation with the relevant portfolio committee in KwaZulu-Natal legislature, should in future conduct a follow- up oversight visit to the municipality of Richmond to evaluate the progress made in respect of the intervention in the municipality. That the political issues especially divisions and factions amongst councillors is a major concern and it must be attended to.
Lastly, that preference and special attention must be made to support the Richmond Local Municipality to address, specifically, the triple challenges of unemployment, poverty and inequality, especially in the light of the violence which was perpetuated in the area and the political killings thereof. On that basis, I submit the report. Thank you very much. [Applause.] [Time expired.]
Debate concluded.
Question put: That the Report be adopted.
IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Report accordingly adopted in accordance with section 65 of the Constitution.
The Council adjourned at 14:55. -----------------------