Chairperson and hon members, the Select Committee on Co- operative Governance and Traditional Affairs, having considered the request by the National Council of Provinces, NCOP, to consider a
report on the intervention notice invoked in Naledi Local Municipality in terms of section 137 of the Municipal Finance Management Act, the select committee reports as follows.
In terms of the NCOP Rule 101, the Office of the Chairperson of the NCOP referred the notice of intervention by the North West MEC for Co- operative Governance, Human Settlement and Traditional Affairs, Cogta, to the select committee for consideration and reporting. On 30 January 2019, the multiparty delegation of the select committee conducted a loco inspection in Naledi Local Municipality.
Chairperson, allow me take the observations of the committee. In terms of the constitutional and procedural matters, the select committee has observed that the national Minister for Cogta, the NCOP, the North West provincial legislature and the municipality were notified of the intervention about the substantive matters related to the invocation of section 137 of the Municipal Finance Management Act. The select committee has also noted that the planned protests at the Naledi Local Municipality and the change of venue have affected the participations of some of the stakeholders including organised labour, women and youth forums.
In accordance with the terms of references, the select committee has noted that the administrator has made progress in developing the municipal financial recovery plan and the plan was tabled and adopted by the Council. The select committee has also noted that the administrator has assigned the municipality to develop the implementation plan dash board to assess the seriousness of the financial problems and develop audit action plan to deal with matters raised by the Auditor-General.
With regard to the recommendations, the NCOP notes the intervention in Naledi Local Municipality in terms of section 137 of the Municipal Finance Management Act. The administrator should fast-track the process of implementing the municipal turnaround plan in accordance with the terms of reference assigned by the North West MEC for Cogta. The administrator should provide progress report on municipal plan to pay Eskom debt, the review of organisational structure and the resuscitation of local labour forum. The North West MEC for Cogta must conduct forensic investigation on supply chain management in the local municipality and tabled the report to the National Council of Provinces. The North West MEC for Cogta should table quarterly progress report to the NCOP on the status of the intervention in the municipality, including challenges encountered. The Select Committee on Co-operative Governance and Traditional Affairs, in co- operation with
the relevant portfolio committee in the North West Provincial Legislature, should in future conduct a follow-up oversight visit to the municipality in order to evaluate the progress made in respect of the intervention in the municipality.
Chairperson, allow me to move to the Ngaka Modiri Molema District Municipality. I will take the observations. In terms of the Constitution and procedural matters, the select committee acknowledged that the national Minister for Cogta, the NCOP, the North West provincial legislature and the municipality were notified of the intervention. The select committee further concurs that there are service delivery and financial management challenges relating to sanitation, water litigations, debt collection, contractors, property and valuation role, revenue collection, Eskom debt and billing system, data cleansing and money owed by government departments to the municipality.
Furthermore, the select committee has observed the inherent lack of institutional capability due to unfiled positions in key skills areas in the municipality.
The NCOP approved the intervention in Ngaka Modira Molema District Municipality in terms of section 137 of the Municipal Finance
Management Act subject to the administrator fast-tracking the process of implementing the municipal financial recovery plan in accordance with the terms of reference approved by the North West provincial executive council; the North West MEC for Cogta tabling quarterly progress report to the NCOP on the status of the intervention in the municipality including challenges encountered; and the Select Committee on Co-operative Governance and Traditional Affairs, in co- operation with the relevant portfolio committee in the North West Provincial Legislature, in future conducting a follow-up oversight visit to the municipality in order to evaluate the progress made in respect of the intervention in the municipality.
Chairperson, I table this reports to you. Thanks!
Debate concluded.
Report on Inspection in Loco on Notice of Intervention in Terms of Section 137 of the Municipal Finance Management Act, 2003 (Act No. 56 Of 2003) in Naledi Local Municipality noted.
Report on Inspection in Loco on Notice of Intervention in Terms of Section 137 of the Municipal Finance Management Act, 2003 in Ngaka Modiri Molema District Municipality noted.