Hon House Chairperson and hon members, as you indicated, I am going to present a consolidated report of the six municipalities in the North West province.
During the period of April 2019, the North West Provincial Executive Council resolved to invoke interventions measures in terms of section 139(1)(b) of the Constitution in Naledi, Tswaing, Madibeng, JB Marks, Ratlou, Mamusa and Lekwa Teemane local municipalities.
Subsequent to the tabling of notices of interventions by the MEC for Co- operative Governance and Traditional Affairs, Cogta, in the North West, the office of the Chairperson of the NCOP referred, in terms of Rule 101 of the NCOP, the notices of interventions to the select committee for consideration and reporting.
As part of the public participation process, the select committee conducted in loco inspections to the above mentioned municipalities from 27 to 29 August 2019.
The objective of the in loco inspections to all the respective municipalities was to interact with the internal and external stakeholders of the municipalities in order to solicit their opinions and views on the constitutional, procedural and substantive
matters related to the invocation of section 139(1)(b) of the Constitution in all these municipalities.
During the entire period of interaction with the various stakeholders as well as the local structures of political parties within the respective municipal areas, the decision to invoke section 139(1)(b) of the Constitution of the Republic was endorsed, with beneficiary local communities advocating for change and improvement in the manner in which municipal government and administration is being handled so as to enhance the institutional capacity of each municipality to execute its respective role and mandate in the delivery of services.
As a result of the highest number of municipalities falling under section 139(1)(b) of the Constitution in the North West province, a decision was taken to progressively address the endemic dysfunctions and challenges that impinge upon the ability of these institutions to perform and discharge their executive obligations in line with the Constitution as well as policy and legislative prescripts.
Hon House Chair, generally speaking, the collapse of service delivery, deficiencies and instability in good governance and administration, as well as distress in their financial management
capability has been noted with serious concern by the NCOP select committee.
The committee observed widespread political factionalism; ill- discipline amongst councillors; appointment of unqualified municipal officials; noncompliance with the existing legislation; and general lack of consequence management and capacity of municipal leadership to ensure smooth, efficient, effective and people-centred local government. All of these are the major causes for the collapse of the municipalities and their dysfunctionality, hence the invocation of section 139 of the Constitution.
Section 152(1)(b) of the Constitution provides that a municipality must ensure the provision of services to communities in a sustainable manner, and section 152(1)(d) of the Constitution provides that a municipality must promote a safe and healthy environment. Therefore, the select committee is of the opinion that the service delivery failures of the municipalities in the North West have triggered the invocation of section 139(1)(b) of the Constitution.
In general terms, the select committee is of the opinion that the instability related to good governance as captured in the notices
tabled to the NCOP, the Minister of Cogta and the presentation made by the MEC in all respects ...
Based on the above situation, we are briefly going to tackle each municipality with regards to the recommendations that we place before the House.
Having conducted the oversight visit to Naledi Local Municipality and interacted with everybody as I stipulated, we made the following recommendations: The select committee notes the intervention, in terms of section 139 of the Constitution, expired on 30 September 2019. Further notes that in terms of section 139(1)(b)(ii) of the Constitution, the intervention must end if the Council disapproves of it within a period of 180 days after the intervention began or by the end of that period, if the intervention has not been approved.
Based on the above, as the intervention has expired by operation of the law, if the North West Provincial Executive Council sees the need to intervene it should re-table the notice of intervention to the NCOP. In essence, we mean that we are not approving this intervention because of the reasons provided for.
In respect of Lekwa-Teemane Local Municipality the select committee recommends as follows: Having conducted the oversight visit to Lekwa- Teemane Local Municipality and interacted with everybody, we recommend that the NCOP approves the intervention in Lekwa-Teemane Local Municipality.
The administrator should develop measurable municipal turnaround strategy aligned with his terms of reference and provide the MEC for Local Government and Human Settlements and the municipal council with regular reports on the implementation of the intervention. The administrator must ensure investigation and implementation of consequence management.
The Department of Co-operative Governance and Traditional Affairs in the North West province must ensure security and safety of all appointed administrators in collaboration with the relevant state security agencies because the situation is cantankerous. The Administrator should ensure that the developed turn-around strategy, amongst others, focuses on plans to comply with the legislative requirements.
The North West MEC for Local Government and Human Settlements, in collaboration with the National Minister, should in terms of section
154 of the Constitution and other relevant legislative prescripts, provide continuous support and monitoring to the Municipality.
The MEC for Local Government must provide the NCOP and the North West provincial legislature with quarterly reports on the progress made in respect of the implementation of intervention.
With regard to Tswaing Local Municipality, the select committee found out that there is indeed a compelling case for the invocation of section 139 of the Constitution, and therefore places the following recommendations: The NCOP approves the intervention in Tswaing Local Municipality.
The administrator should implement consequence management with regard to the noncompliance of the requirements of the Preferential Procurement Policy Framework and its regulations. The administrator should develop and implement a post audit action plan to address previous audit queries and qualification.
There should be mechanisms and systems in place to strengthen internal control and implement revenue enhancement strategy for the municipality. That the MEC in respect of Tswaing as well, must provide support and strengthen capacity of the municipality in terms
of section 154 of the Constitution and other legislative prescripts. The MEC must in the same vein produce and submit quarterly reports to the NCOP as well as the relevant provincial legislature select committee. The MEC for local government should table the termination or exit report on the intervention in the municipality to the NCOP.
With regard to the JB Marks Local Municipality we must point out that there were no interactions with the external and internal stakeholders. There was a lot of confusion within the municipality with the municipality prevaricating on the need and the purpose of the visit of the NCOP. That in itself was demonstrable evidence that the municipality is unstable and warrants an intervention and the invocation of section 139 of the Constitution as it was invoked by the provincial government.
Having noted the above, we placed the following recommendations: The NCOP approves the intervention in the municipality in terms of section l39(1)(b) of the Constitution. The North West MEC for Local Government should, after the adoption of this report of the select committee, table quarterly progress reports on the implementation of the intervention.
The select committee, in co-operation with the relevant portfolio committee in the North West, should after termination of the intervention, conduct a follow-up oversight visit to the municipality in order to evaluate the impact of the intervention in accordance with the terms of reference of the administrator.
With regard to the Madibeng Local Municipality we place the following recommendations for consideration: The NCOP approves the intervention in Madibeng Local Municipality. The relevant MEC should table the departmental investigation report, implementation plan and the forensic investigation report in terms of section 106 of the Municipal System Act to the NCOP, after tabling it to the municipal council of the municipality.
The administrator should fast track the process of investigating the irregular appointment of contractors within the municipality, and table quarterly preliminary reports to the NCOP for our consideration.
The MEC for Local Government in the province should put in place monitoring mechanisms on forensic investigations and follow up all those recommendations by the administrator. This committee, together
with relevant portfolio committee, should also equally conduct a follow-up to ensure aftercare for whatever was done.
Lastly, having noted the situation in the Ratlou Local Municipality, the committee recommends as follows: The NCOP approves the intervention in Ratlou Local Municipality in terms of section l39(l)(b) of the Constitution.
The administrator should conduct an investigation on the unauthorised, irregular and fruitless and wasteful expenditures incurred in prior years, to determine if any person was liable for the expenditure as required by section 32(2)(a) and (b) of the Municipal Finance Management Act. The administrator should revise the draft turn-around strategy in order to also focus on consequence management, filling of critical vacant positions and the payment of third parties.
The North West provincial government its department, should, in collaboration with the Minister, provide support to the Ratlou Local Municipality in terms of section 154 of the Constitution and other legislative prescripts. The MEC should table quarterly reports to the NCOP in respect of this matter. The MEC should also table a
termination or exit report to the NCOP on the implementation of the intervention in the municipality.
This select committee in co-operation with the relevant portfolio committee in North West, should after termination of the intervention, conduct a follow-up oversight visit to the municipality in order to evaluate the impact of the intervention in accordance with the terms of reference of the administrator. That is a consolidated report that I place before this House for consideration. Thank you very much, hon House Chairperson. [Applause.]
Debate concluded.
Chairperson, on a point of order before I read the declaration. I haven't seen any speakers list with the name China on it. The member has just read a report without speakers list. Just a report in any case. Hon Chairperson ...
Hon Labuschagne, we do have the speakers list.
With his name?
Yes.
Okay.
Declaration of vote:
The Western Cape does not approve this intervention due to constitutional processes and procedures that were not followed for years.
Evidently to the records of provincial section 193 interventions, there is no legislation or institutional improvement in this action since there is no enforcement of the Municipal Finance Management Act, MFMA, section 32 transgressions or application of any form of consequential management.
In terms of section 152 of the Constitution, JB Marks Municipality did not comply with its constitutional obligations.
The North West Provincial Government and the Department of Co- operative Governance and Traditional Affairs did not comply with the constitutional section 154 in their failure by legislative and other matters in their oversight capacities to support this municipality.
Interventions within the political composition of a municipality will not ensure sound financial management.
The financial mismanagement, fraud and corrupt activities, cadre deployment of unskilled employees will remain the status quo of management causing collapse of municipalities. Therefore, the NCOP cannot be used to rubberstamp for the sake of compliance when there is an increase in irregular, unauthorised and wasteful expenditures of billions of rands. Therefore, the Western Cape will not support this intervention.
Before I can entertain any province, it will be in order to indicate that when we started, we started by voting by the motion that was presented by the Chief Whip of the NCOP. All provinces voted in favour. That motion was to allow us to have the Chairperson of the Select Committee on Co-operative Governance and Traditional Affairs, Water and Sanitation and Human Settlements, hon Dodovu, to present the report as agreed by the House in terms of our Rules. So, that was attended to accordingly in terms of our Rules.
Question put: That the Report be adopted.
In favour: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West.
Against: Western Cape.
Report accordingly adopted in accordance with section 65 of the Constitution.