MUNICIPAL SYSTEMS BILL - SOUTH AFRICAN NATIONAL CIVIC ORGANISATION (SANCO)

SUBMISSION TO THE PORTFOLIO ON LOCAL GOVERNMENT ON THE VIEWS OF THE SOUTH AFRICAN NATIONAL CIVIC ORGANISATION (SANCO) ON THE PROPOSED NATIONAL ASSEMBLY BILL ON THE MUNICIPAL SYSTEMS BILL

1. INTRODUCTION & BACKGROUND
Before our first democratic national elections in 1994, the South African National Civic Organisation introduced the term people-centred and people-driven development. This term was to gain prominence and popularity when it was concluded as a central concept in the Reconstruction and Development Programme (RDP). We must therefore commend the drafters of this proposed Bill on their attempt to ensure that local government embraces co-operative governance within government and with the public. We shall comment on the success of their attempt in this submission.

Nonetheless,we as SANCO, strongly maintain that we are faced with a militant reality that begs us not bury our head in the earth like an ostrich, but face this reality and accept it as a challenge. Firstly, let us realise that the developmental challenges facing our country are ones that demand us to redress decades (and in many cases centuries) of backlogs in the socio-economic development of the majority of our populace. We must further acknowledge that a fundamental backlog is the provision of basic municipal and essential services. Secondly, it is altogether important that we recognise that the people of our country expect that this backlog must be redressed by our democratically elected government as fast as possible, and where our government is not certain exactly how to redress then it must consult the beneficiaries in a meaningful manner, We believe that the Municipal Systems Bill can ensure that we face this militant reality and overcome it.

2. CO-OPERATIVE GOVERNMENT
The issue of co-operative government is a matter of principle, and it is a principle that can ensure that government is more focussed and efficient. It also ensures that the different parts and players within government do not compete with each other, particularly, on the finances awarded to the different parts. We therefore, recognise
attempts of the bill to ensure the lack of duplication, consultation, and joint planing between the other parts of government and Local Government. We would also hereby add that it would be appropriate that local government is involved in the national, budget process, so that it is not a passive beneficiary, and that the principle of co-operative governance is applied to all parts of government.

3. PUBLIC PARTICIPATION
As with the previous section of our submission it is SANCO's considered view that the issue of participation of the community, civil society organisations, and the public in general, is a principle that enhances our effectiveness as a government and in reaching our developmental priorities.

However, if his participation is regarded as cosmetic as opposed to meaningful, then the public will grow more cynical, and its opinion shall become easily exploitable from those cynical parts of our society. Meaningful participation can only be achieved if the community on one hand comes out of a consultation believing that they have learnt something, and on the other the community must believe that they have made a change. Furthermore, we must also recognise that the capacity of our municipalities and councils are deeply restricted moreso in rural and smaller councils, and therefore, it is exceptionally necessary that central government ensure that our local councils and municipalities have the resources to ensure that meaningful participation is implemented. Otherwise we run the risk of only adding another well-meaning intention and further burdening our local council and municipality with a function that it is unable to implement. And be assured that as SANCO we shall put pressure on our local councils and municipalities to ensure that there is meaningful participation.

Furthermore, there is a necessity to provide a section for community based organisations like SANCO, rather than house it under the definition of community. Since one also expects that the Bill provides for the actual community to be consulted that stall be affected, rather, that just an amorphous group of residents and ratepayers.

We must accept that for the Bill not to only be in the advantage of our elite within our society, it is of prime importance that we realise that it is more difficult to ensure the meaningful participation of disadvantaged communities,and therefore, we must provide capacity to these communities and their organisations so that they can engage on an equal footing.

We, as SANCO do understand that not all meetings can practically be open to the community, and therefore, we contend that, the issue of a bylaw to be passed for a meeting to be closed be scrapped, and we accept that a resolution of Council be the only means for a meeting to be closed, with the issue of an objection dealt in a manner as specified in the section. However, we must add that any decision made in a closed meeting is allowed to be placed under scrutiny after the closed meeting,

4. MUNICIPAL POWERS AND DUTIES
There are only two (2) parts in this section that needs to be expanded.

Firstly, we believe that it must be appropriate for the National Minister to consult national community organisations, when consulting if a municipality should be further empowered. The same should be done by the Provincial MEC.

Secondly, the bill does not provide for a manner in which residents or organisations can propose by-laws. The possibilities of such a procedure allows for much more interactive government than a single directional output.

5. INTEGRATED DEVELOPMENT PLANNING
Without doubt as SANCO we welcome this section. We firmly are of strong opinion that the budget and planning aspect of local government can be greatly enhanced if it becomes more integrated and collective than that being done at the present moment.

We as SANCO are not necessarily convinced that the process as outlined from section 25, ensures that the community is involved in a manner that adds value to the process. Such that, if the process outlined in section 25 (1)(b) is after the drawing of the plan, at the very beginning, or during the drawing of it. We believe that, whatsoever method is chosen the overriding principle is that which ensures that the developmental needs of the community is identified by the community and not by the council or municipality_,but for the council and municipality. For this express purpose we firmly propose that a committee representing stakeholders is formed so that the council and municipality can consult them. Furthermore in line with this proposal we further propose that the ad hoc committee formed by the Provincial MEC for Local Government also includes an organisation that is involved in local government, like SANCO. The central involvement of community and the local government in drawing up an integrated development plan is of more than prime importance since it is these entities that will have to live and implement this plan on a day to day basis, and both of them must feel like they co-own the plan so that they insure that it is implemented and updated so that the developmental objectives of the area are achieved.

6. MUNICIPAL SERVICES (Chapter Eight)
Both the provision of basic services and the tariff policy must be inherently development and transformative orientated, because we must recognise that our communities have been in the past deliberately developed in different ways by the apartheid government. This militant reality must be recognised.

We must therefore accept that we cannot regard all consumers as equal, but we must ensure that all people must have universal service to basic essential services,like sanitation, water and electricity. And therefore, it becomes appropriately possible for us as a government and a nation to accept that there is an umbilical link to between our health costs and mortality rates and the essential basic services. We must accept World Bank reports that conclude that means tests and so called lists of the poor just does not work, and there we must implement progressive block tariff systems that ensures a life-line and special tariffs. Furthermore, in as much as we must encourage investment by business, these incentives of special tariffs must not become the norm, and must not result in the ordinary consumer subsidising business. Furthermore, as in section 68(2)(i), the special tariff to business must also be fully disclosed. Moreover, we are also of strong and considered opinion that any service that is pre-paid should be charged at a much lower rate than that which is paid only after receiving the service. We all realise that in a capitalist system you pay more when you buy on credit then when you pay by cash.

As SANCO we recognise that the provision of basic essential services is a human right and therefore we must ensure that if our institutions cannot provide these services then institutions must be created that car provide these services. However, we are of firm contention that the municipality, and in this case as representative of the State, must not abrogate its responsibility through service delivery agreements with other entities. Whatsoever entity is chosen there is a responsibility on the municipality to ensure that the public, and in particular the disadvantaged are not seriously further disadvantaged. Moreover, the municipality must took at these service delivery agreements as a means to ensure that the municipality can utilise the community in providing its own services and therefore the municipality is able to assist in the provision of employment. We do not expect to have a situation of national business structures being created that shall start targeting bids on services. Moreover, as SANCO we maintain that the issue of fraud and corruption must not be minimised but should be eradicated. Furthermore, there is a lack of appropriate monitoring from either central, provincial, or a state institution to ensure that the process is not one without incidence of corruption or fraud. Further, there is no limit on the time that can be provided in the agreement, and therefore SANCO states that if there is an agreement it should be annual with a review in six months, so that if some or all performance indicators have not been complied with then the agreement can be scrapped because the entity is in breach.

7. CREDIT CONTROL AND DEBT COLLECTION (Chapter Nine)
We believe, as SANCO, that a municipality and council must ensure that it is dealt with fairly by its consumers. And in the same manner it must also deal fairly with its consumers. By that token we recognise that a municipality must implement debt collection and credit control on consumers that do not pay for services rendered.

However, we contend that debt collection and credit control depends on an effective policy for the indigent. At t he moment municipalities do not have effective and accurate economic surveys of its designated areas, particularly in erstwhile townships, making it quite impossible for the termination or the restriction of services. Only in the instances of business or middle class suburbs can the municipality with any certainty know that it is not restricting or cutting he services of an indigent family.

Therefore we propose that a progressive tariff pricing policy with a definite lifeline policy and special tariffs can be implemented without difficulty, and shall ensure that the services are sustainable. And we also reiterate that means tests and lists of the poor have not proven successful so that the municipality can identify its indigent.

8. GENERAL COMMENTS
By and large we recognise that the success of the implementation Bill shall be welcomed by all in South Africa. However, simultaneously we also recognise that the present weaknesses of municipalities, and therefore, the implementation of the Bill is wholly dependant on the administrative and financial capacity of different municipalities (of different and same categories) across the country.

Furthermore the Bill is quite silent on the empowerment of communities to be able to participate effectively. And therefore, there is the strong possibility that it shall only be the elite who shall benefit from the Bill.

Furthermore, on the Integrated Development Plan, we must observe that there does not seem to be any national guideline on who produces the Integrated Development Plan? Moreover, there does not seem to be any tangible differences IDPs for district councils and category b municipalities. We must also observe that the Bill is also quite silent on the issue of who will the evaluations and what exactly shall occur if the performance indicators are not achieved,

And finally we believe that the overall objective of Bill must be two fold. On the one hand we recognise that the Bill must assist our municipalities in becoming efficient and effective, particularly on the side of resources, However, on the other hand an equal objective of the Bill must be the increasing of the capacity of the of local government so as to provide services to all, so that local government can ensure that the transformation of local communities from townships into suburbs occurs;. Both these objectives are equal and they must receive equal and fair attention, and they should not cancel each other out.

I thank you for your patience, time, and thank you for listening.