[pic] Private Bag x802, PRETORIA, 0001 Tel: (+27 12) 334 0705 Fax: (+27 12) 326 4478 Private Bag x9123, CAPE TOWN, 8000 Tel: (+27 21) 462 1441 Fax: (+27 21) 461 0851 FOR WRITTEN REPLY NATIONAL COUNCIL OF PROVINCES PARLIAMENTARY QUESTION NO 355 Mr M H Mokgobi (ANC-Limpopo) to ask the Minister for Cooperative Governance and Traditional Affairs: 1) Whether his department and the SA Local Government Association are monitoring in accordance with their mandates the role of other organs of State that are working in the local government sector (details furnished); if not, why not; if so, what are the relevant details; 2) What are the department’s (a) short-term measures and (b) hands-on approach to assist municipalities that are currently under administration to return to functionality (details furnished)? REPLY: 1) Regarding the first part of Honourable Mokgobi’s question, the question may not directly apply to my department as this department does not necessarily play a monitoring role over other organs of State that are working in the local government sector, but works together with them to make it possible to achieve their mandates. However, the Department does monitor the provincial sphere of government in the performance of its support role in the municipalities as provided for in section 154(1) of the Constitution. The Department works together with provincial governments to see to the effective performance by municipalities of their functions, as per the provisions of section 155(7) of the Constitution. Also, in terms of section 47 of the Municipal Systems Act of 2000, the MEC for local government must annually compile and submit to the provincial legislature and to me (as the Minister) a consolidated report on the performance of municipalities in the province. This report, which must also be submitted to the NCOP, must identify municipalities that underperformed during the year, propose remedial action to be taken and be published in the Provincial Gazette. Furthermore, in terms of section 48 of the same Act, I (as the Minister) must, annually, compile and submit to Parliament and the MECs for local government a consolidated report of local government performance in terms of general performance indicators. The South African Local Government Association (SALGA), on its part, has, as one of its mandates or roles, a duty to develop capacity within municipalities. In its strategic plan for 2012 to 2017, SALGA has, among its goals, ‘the attainment of financially and organizationally capacitated municipalities, as well as ‘effective and efficient administration’ in municipalities. It also has to develop and maintain relationships with other organs of state whose functions impact on service delivery and municipal functioning. 2) In answering this question, it should be noted that, currently, there are ten municipalities that are under administration in terms of section 139(1)(b) of the Constitution, in which the provincial executives concerned have assumed responsibility for the relevant obligation or obligations that the municipalities failed to fulfill. They are Indaka, Mtubatuba, Imbabazane, Abaqulusi and Umvoti local municipalities (KwaZulu-Natal); Ditsobotla, Maquassi Hills and Matlosana local municipalities (North West); Emalahleni and Bushbuckridge local municipalities (Mpumalanga). In addition, there are three municipalities that are under discretionary financial interventions in terms of section 136 (2) of the Municipal Finance Management Act, read with section 139(1) of the Constitution. They are Umzinyathi, Uthukela and Ugu district municipalities in KwaZulu-Natal. This brings the total number of municipalities that are currently subjected to interventions to thirteen. There are three types of challenges that would ordinarily trigger interventions in municipalities as per section 139 of the Constitution. They are; the failure to fulfil an executive obligation, failure to approve a budget and the breach of obligations. These triggers are generally categorized under the governance, financial management and service delivery performance areas. (a) In regard to the short-term measures Honourable Mokgobi has referred to, all of the above municipalities, particularly those under section 139(1)(b), have provincial recovery plans in place, which targets the specific areas of underperformance. To obtain an immediate and full picture of the status of the municipality under intervention, the department liaises with the province concerned, assesses, reviews and undertakes site visits to ensure that progress is being made. The short-term measures that are applied will vary depending on the challenges faced by each municipality. (b) To facilitate hands-on support, a database, record of interventions and its causes is kept updated. A special inter-branch Coordinating Committee for section 139 interventions has been established, and this multi-disciplinary team directs the necessary support during interventions. The support is given in governance, financial management and service delivery matters. i. Governance Support in governance is often given through the provision of training and workshops to municipal personnel, especially the managers. Skilled personnel from the Department are, where necessary, seconded to municipalities to provide support in those areas in which the municipalities are found wanting. The broad approach of the Department, however, is to allow the provincial executive implement each intervention and provide support in line with the resolution it had adopted when it resolved to intervene in the municipality concerned. This is because provinces have a duty to support and strengthen the capacity of municipalities as provided for in section 154(1) of the Constitution. Furthermore, the MECs responsible for local government are required to submit regular progress reports on the interventions in order for the Minister and the Department to be kept informed of the developments that are taking place in the municipalities under administration and to provide assistance where necessary. ii. Financial Management We maintain a close relationship with National Treasury, which has financial oversight vis-a-vis the Municipal Finance Management Act, for the scrutiny of Section 71 Reports. The department also works continuously in supporting effective and functional Municipal Public Accounts Committees and programmes to exercise oversight on implementation of the recommendations of the Auditor-General. Monitoring is a continuous activity, and is currently particularly focused on the Municipal Systems Act Amendment Regulations regarding the appointment of properly qualified and skilled Section 57 Managers. The department’s Anti-Corruption unit also works closely with investigative agencies to seek to curb practices of maladministration in municipalities. iii. Service Delivery The Municipal Infrastructure Support Agent is a major support player in the deployment of technical skills support. Of the thirteen municipalities currently under intervention, Mtubatuba, Ugu, Umzinyathi, Uthukela and Bushbuckridge are receiving support from MISA. Regular reporting is also conducted by the department on the municipalities’ capacity to execute projects under the Municipal Infrastructure Grant, and to divert funds to MISA for additional project management support. The Department also facilitates requests for assistance from other organs of state to assist in specific areas. Examples of such requests are to institutions such as Eskom, Department of Water Affairs, National Treasury and the Development Bank of Southern Africa. In addition to these measures, targeted visits to municipalities that are under administration will determine what other measures, if any, should be developed or adopted in order to assist the municipalities to become fully functional again. The Department also assesses the close-out reports that provinces are required to submit to the Minister at the end of each intervention, in order to determine the extent of the recovery, and whether sustainability and viability have been restored.