Report of the Select Committee on Local Government and Administration on Study Tour of Municipalities in Northern Cape, dated 13 August 2003:



A. Introduction

The Select Committee on Local Government and Administration undertook a visit to the Northern Cape Municipalities in pursuant of a notice by the office of the MEC on problems experienced by the three municipalities that is Tsantsabane, Siyancuma and Ubuntu municipalities from 5 to 8 May 2003.

During the visits, the Committee sought to meet with the Office of the MEC, SALGA Northern Cape, Provincial Standing Committee on Local Government and Housing, Committee of Inquiry into the Affairs of each municipality and Mayor, council and senior management of each municipality.



Delegation

A multi party – party delegation consisted of:

Mr. B J Mkhaliphi ANC Mpumalanga – Chairperson

Kgoshi L M Mokoena ANC Limpompo

Mr. J Horne NNP Northern Cape

Mrs E Lubidla ANC Northern Cape

Mr. T Ralane ANC Free State

Mr. PND Maloyi ANC North West

Prince B Zulu ANC KwaZulu - Natal

Ms N Kondlo ANC Eastern Cape

Ms F P Sotenjwa Committee Secretary

Mr. C Sibanyoni Researcher



B. Terms of reference

In respect of the terms of reference the Select Committee would focus on a continuous bases on the following:



Establish problems experienced by the three municipalities.

Determine whether these municipalities are effectively and efficiently discharging their executive obligations in line with the Constitution of the Republic of South Africa, Act No. 108 of 1996, the Local Government Municipal Structures Act No 117 of 1998 and the Local Government Municipal Systems Act No. 32 of 2000.

Furthermore the visit to the three municipalities was inline in line with section 154(1) of the Constitution, which states that the "national and provincial governments, by legislation and other measures, must support and strengthen the capacity of municipalities to manage their own affairs, to exercise their powers and to perform their functions".



C. Background

The three municipalities were established in terms of section 12 of the Local Government Municipal Structures Act, No. 117 of 1998 (as amended).



Tsanstabane municipality consists of Olifantshoek and Postmasburg Transitional Councils.

Siyancuma municipality consists of former Douglas Transitional Councils

Ubuntu consists of the former Victoria West, Loxton and Richmond municipalities.

The MEC for Housing and Local Government established that there were political, administrative and financial problems in these municipalities. Consequently, he intervened in the three municipalities by appointing Committees of Enquiry into the affairs of these municipalities. This was done in terms of section 106(1)(b) of the Local Government Municipal Systems Act No. 32 of 2000 read with the Committees of Enquiry Ordinance No. 13 of 1978, and assigned to the Office of the Premier, Northern Cape Province under Proclamation No. 108 of 17 June 1994.

Monday 05 May 2003



D VISITS

South African Local Government Association (SALGA)



MONDAY, 05 MAY 2003 ; 10H00 – 12H30

Administrative and financial problems

1.1 According to SALGA, Northern Cape the three municipalities are affected by administrative and financial problems. The Council of Ubuntu Municipality was unaware that it had financial problems because it did not receive any information from its administration in this regard. The Council received the information that the municipality has financial problems from the Department of Housing and Local Government. SALGA further stated that the municipality has outstanding creditors and debtors. The Municipality also had a problem of mismanagement. The Councillors "become officials and officials become councillors".



1.2 With respect to the Siyancuma Municipality, it did not have a treasury. They had an Acting Municipal Treasury for quite some time.



1.3 With regard to the Tsantsabane Municipality, SALGA stated that there was a political problem between two political parties within the Council. The fight has been going on for many years. SALGA stated that "While these parties were fighting each other the municipality was going down" and this negatively affected the finances of the Municipality.



1.4 SALGA asserted that the municipalities have credit control policies, but its implementation is difficult because some residences and government departments cannot or do not pay and municipalities have no capacity to collect money owed to them. SALGA further stated that the government departments owing municipality include the Department of Education (Schools not paying rates). Smaller municipalities cannot compete with bigger municipalities in employing highly qualified chief financial officers to collect money owed to municipalities. In some cases, when the smaller municipalities hire someone who lacks experience, the person will work for a short period and then leave to the bigger municipalities. Most municipalities in the Northern Cape are struggling to attract and retain Senior Municipal Officials.



1.5 Moreover, while the Municipal Demarcation Board intended to ensure that municipalities are financially viable, Northern Cape has poor rural municipalities that have vast, low-density wards. For example, from one ward to another one can travel about 200 kilometres. Hence, the ability to collect money is limited because the municipalities are rural and have low density. Additionally, the grant that municipalities receive from the National Government with regard to indigents is not enough. In most cases, municipalities also do not have capital budgets for development in most cases.



1.6 SALGA recommended the following:

Even when the intervention is undertaken, municipalities need to disclose their political, financial and administrative problems. Some councillors transgress legislation intentionally and some unintentionally. Nevertheless, the national and provincial spheres cannot force the municipalities to disclose because local government is an independent sphere.

Local legislatures need to have committees where they share information with officials. Councillors are often not aware of what is going on with their finances because there is no reporting system.

Reporting systems should be established. Reporting has to be done monthly.

There is a need to capacitate municipalities to know local government legislation and be able to collect revenue owed to them.

There is a need for SALGA and the Department of Housing and Local Government to have a structured monthly meeting to inform each other properly. This will enable the Department of Housing and Local Government as well as SALGA to identify municipalities experiencing administrative and financial problems.



RECOMMENDATIONS

The Committee recommended that:



The provincial Department of Local Government and Housing must find a way to monitor the municipalities on regular basis in a focused manner e.g. site visits and interaction with the councils in addition to monthly written reports submitted.



The Department of Provincial and Local Government (DPLG), the Department of Housing and Local Government, SALGA and the Local Government, Water and Related Services Sector Education and Training Authority (LGWSETA) need to provide the necessary training to councillors and officials of these three municipalities. Effective capacity-building and training will ensure that these municipalities successfully implement the new system of local government and advances service delivery and development.



Tsantsabane Municipality : MONDAY 05 MAY 2003 : 14H00 – 18H00

1. Committee of Enquiry

The Committee of Enquiry in Tsantsabane Municipality was conducted on 10 October 2002.

The findings of the Committee of Inquiry include the following:



Conflict between Council members. This impacted negatively on the management of the Council.

Delays with the implementation of the approved staff structure and placement of staff.

Lack of delegated authorities to Council, its Committees, Municipal Manager and Heads of Departments.

Lack of municipal by-laws regulating key activities.

Lack of implementation of key policies.

Unconsolidated financial systems of the Council after demarcation due mainly to a severe backlog that existed in the previous Olifantshoek Transitional Council.

There was no dedicated credit control and debt collection department.

The administration of the Municipality was not functioning properly.



1.3 Hence, the Committee of Enquiry recommended that:

The completion and implementation of delegated authorities to Council, its Committees, Municipal Manager and Heads of Departments in accordance with laws and regulations.

Review and implementation of the draft policies and by-laws currently under consideration by Council.

Review of the feasibility of the current personnel structure proposed for the Council and the immediate implementation thereof starting with the appointment of a Municipal Manager and the respective Heads of Departments to drive the process of reform.

Support with updating all financial information for the previous Olifantshoek Transitional Council and consolidation of financial systems as soon as the updated information becomes available.

Preparation of a complete debtors management plan incorporating credit control and the indigent policy o f Council to improve collections in all areas.

Support with the maintenance of service delivery equipment to improve the level of service delivered to all communities.



Training of staff in the administrative department to relieve the capacity problems currently experienced.

The preparation of a new valuation roll and amendment of the current budget or incorporation in the budget for 2003/04 of the improved tax base afforded by taxation of all properties in the demarcated area.

Preparation of a complete debt management plan incorporating political intervention to afford a repayment plan of arrear debt to the water board.

Preparation of a long-term financial plan incorporating the debt management plan and cash based budgets for future financial years.



2. Political problems: Council

The Select Committee was informed that the political problems in Tsantsabane were caused by a split into two factions of a political party within the Council. The conflict, which was going on for many years, adversely affected the functioning of the municipality. The faction that split up obtained the mayoral seat when it formed an alliance with another political party within the Council. Some of the councillors attributed the conflict largely to the lack of political tolerance.



2.2 Councillors were also interfering with the administration of the municipality. A member of the Committee of Enquiry informed the Select Committee that councillors did not understand their role and functions within the council.



2.3 Some councillors asserted that the relations between councillors have improved because of the floor crossing, which changed the balance of power. However, one councillor indicated that the differences between political parties continue. The Council is still unable to appoint a Municipal Manager. Throughout the discussions, the Committee could detect that there are still problems in the Council, as there were sharp differences of opinion between councillors.



2.4 However, when the Select Committee asked the Council of Tsantsabane whether it has implemented the recommendations of the Committee of Enquiry, some of the councillors indicated that they implemented some of the recommendations. However, later when they were asked about the same report, they said that they did not receive the report. It is unclear whether the report was handed over to the Council or not. Since the Council indicated that it did not receive a copy of the recommendations a staff member from the Department of Housing and Local Government who was present at the meeting, gave the Mayor a copy of the report.



2.5 The Committee is of the view that:

Political parties have different beliefs. In any democratic system, there will always be a majority. The political party that has a political majority has a duty to lead the Council of Tsantsabane Municipality. However, the political parties should also ensure that they manage their relations effectively for the benefit of the residents.



Councillors should learn to rise above political differences and co-operate in order to ensure that services are delivered to the community.



The municipality should appoint a Municipal Manager as soon as possible. This is a crucial position in the management of the municipality. Unless a Municipal Manager is appointed, the Council will have staff that will be unable to implement Council’s policy decisions, since they will not be having any leadership at senior management level.



Progress with regard to the implementation of the recommendations set out by the Committee of Inquiry should be reported on and on monthly basis.



3. Administrative problems: Senior Management

3.1 It was reported that the conflict within the Council also spilt over to the administration of the municipality. It emerged during the discussions that there were also factions in the administration that were aligned with the factions within the Council.



3.2 Because of the disagreements between political parties with regard to the appointment of the Municipal Manager, the municipality has an acting Municipal Manager. The position of the Municipal Manager was advertised five times and no agreement was reached between the political parties regarding a suitable candidate.



3.3 The issue of the appointment of a Municipal Manager is also linked to the placement of staff. Delays with the implementation of the staff structure and placement were reported as a major cause of concern due to the uncertainty it is causing among staff, some of whom were neglecting their duties.



3.4 A problem with personnel shortage was also reported. In terms of the municipal organogram, the municipality needs more staff. The organogram was finalised in January 2003 with the help of a consultant appointed by the Department of Housing and Local Government. The appointment of the consultant was part of the Municipal Support Programme (MSP).



3.5 The acting Municipal Manager stated that the situation has improved. He asserted that he has a good cooperative relationship with the councillors, especially the Mayor.



4. Local government finances

4.1 The municipality has a credit control and debt collection policy. The problem is to implement it effectively. The municipality does not have a dedicated credit control and debt collection department. The staff complement currently allocated to this function is reported to be inadequate. According to the Council, some households are not paying for services. The percentages of payment are 53 per cent and 69 per cent respectively for Olifantshoek and Postmasburg service centres. The municipality has a debt of R5 million. If everybody could pay, it would still need R2,5 million. Even if a 100 per cent debtors payment rate is achieved, the interest accumulating on the arrears amount will still result in a net cash loss on the service. One of the factors that are contributing to the non-payment of services is leaking water pipes in Olifantshoek. The cost of leakage to the municipality is approximately R70 000 a month. Because of this, it is difficult for the municipality to convince residents to pay for water when there are leakages.



4.2 However, the Council has started implementing the credit and debt collection policy through assistance of community structures.



5. Delivery of services

5.1 The municipality stated that it does not have vehicles to deliver services. This issue, together with the s taff shortage, make it difficult for the municipality to deliver services to Communities.



6. Capacity-Building and training

6.1 The Department of Housing and Local Government appointed a consultant on behalf of the Tsantsabane Municipality as part of the Municipal Support Programme (MSP). The consultant was responsible for assisting the municipality with the development of an organogram, credit control policy, debt collection policy and standardising filing system.



6.2 The consultant has been with the municipality for about three years. This poses serious question regarding the transfer of skills to the staff of the municipality.



RECOMMENDATIONS

The Select Committee recommended to the council that the following matters receive urgent attention:

The acting Municipal Manager should ensure that staff do not neglect their duties.

The municipality should place staff as soon as possible in order to ensure that there is efficiency, effectiveness and accountability.

The municipality should do more to collect the arrears owed to it for service charges, particularly from those who can afford to pay.



The issue of leaking water pipes in Olifantshoek should be attended immediately.

The Department of Local Government and Housing and the Department of Provincial and Local Government assist the municipality in ensuring that they have the necessary vehicles for service delivery.

There should be a transfer of skills from and to the staff of the municipality. There must be strict conditions were the municipality is given assistance, such as Municipal Support Programme (MSP).



Siyancuma Municipality : TUESDAY 06 MAY 2003 ; 09H00 – 18H00

1. Committee of Enquiry

The Enquiry into Siyancuma Municipality was conducted from 6 to 7 February 2002.

The findings of the Committee of Enquiry include:

Lack of access control and security.

Weak financial systems



No reporting system between the senior management and the Council.

Maladministration, financial mismanagement and non-compliance with local government legislation.

Lack of development and implementation of key municipal policies.

Councillors’ lack of understanding of local government legislation.

The Committee of Enquiry recommended, among other things, that:

A help desk should be established in order to facilitate appointments to avoid a situation where people could come in and out without being checked.

Financial systems must be strengthened by appointing a relevant officers.



The Acting Municipal Manager should submit monthly reports to the Office of the MEC on executing his executive authority and other duties.

The council should attend to the alleged transgression by the former Mayor. It could not be established exactly what the transgression was.

All outstanding policy matters and the implementation thereof should come into effect urgently.

Councillors should familiarise themselves with local government legislation.



2 Political problems

2.1 A member of the Committee of Enquiry stated that the ex-mayor of the municipality was involving himself in the administration of the municipality.



2.2 According to a Councilor, another problem is that most of the Councillors were inexperienced. Hence there was also a lack of knowledge regarding the role of Councillors.



2.3 There are policies outstanding, for example, for housing.



2.4 The Council should learn to consult one another to ensure that whatever resolutions arrived at, involve the entire council including the opposition.



2.5 The ex-mayor was given responsibilities to implement political recommendations but he failed.



3. Administrative problems

The municipality had an administrative problem because of the conflict between the previous manager and executive mayor. According to some members of the Council, the problem started with the amalgamation process. The Municipal manager appointed was considered to be not capable in that he allergy promoted inconsequently inflated salaries of some employees without the approval of the council.

The council could not secure the services of a capable municipal Treasurer to administer the finances of the municipality.



The municipality also has experienced problems in dealing with placement process of staff. The municipality placed staff, but the South African Municipal Workers Union (SAMWU) declared a dispute against the municipality with regard to the proposed placements. In addition other staff members were not placed, while others were placed in positions in which the allergy could not perform. Consequently, the Municipal Manager could not hold anybody accountable since most officers placed were in inappropriate position.



The municipality also had problems with regard to staff discipline. According to one councillor, the senior management comes to work late. Some of the senior staff explained that they sometimes had to attend meetings in Kimberley in the morning before they come to work.

There is a communication problem between senior personnel and workers. However, the communication gap is closing.



The municipality had no by-laws in place, as required by legislation. The new mayor has committed himself in addressing this shortcoming.



The Municipal Manager alleged that councillors ignored the standard rules of order of Council. For example, resolutions were not proposed for adoption, councillors raised issues that were not on the agenda and minutes of the Council were not signed as a true reflection of the discussions.



4. Delegation of powers and functions

4.1 The Council did not delegate powers and functions to the Municipal Manager. Everything had to be approved by the Council.



5. Local government finances

5.1 The municipality has a credit control and debt collection policy.



5.2 The Siyancuma Council stated that it did not know what was the financial situation of the the municipality, because it did not receive financial statements for two years.



5.3 Some staff received salary increases without the input and approval of the Council.



5.4 The ex-mayor allergy took advances on his salary and misused the Mayoral vehicle, as well as interfered in the administration of the municipality. The matter regarding the money owed by the former mayor has been handed over to the Public Protector.



5.5 Employees also took advances and in some cases the advances were more than their salaries. They had to pay back over a period of time. The municipality has stopped this practice and employees must demonstrate the need for salary advances.



5.6 The municipality did not have a treasury and had an overdraft of

R300 000. Moreover, most consumers are employed and do not pay for municipal services.



5.7 About 54 percent (instead of the allowed 35 percent) of the municipal budget is spent on salaries. The revenue of the municipality is around R14 million and about R7 million goes to salaries.



5.8 However, the Council is now receiving financial statements monthly. It received its first financial report in March 2003. The municipality has turned the situation around. Currently the municipality has about R2 million in its bank account.



5.9 Due to poor payment of some residents, the council is going door to door to explain to them why they should pay for municipal services.



The Select Committee raised concerns that:

Despite the fact that the Council was meeting for two years it did not use its power to take action where necessary.



6 Integrated Development Planning

The Council is still in the process of compiling the Integrated Development Plan (IDP) for the municipality.

The councilors conceded that they were way behind the schedule with this process, will try and speed it up.



7. Provision of services

7.1 According to some members of the Council, the municipal tariffs were raised by 30 percent. The Council used the services of a consultation company to determine tariffs. The consulting firm was used because the municipality did not have a qualified person. As the results of the new tariff, charges for provision of water were doubled without any significant improvement in the quality of service.



8. Support from Provincial Government

8.1 The stakeholders within this municipality have acknowledged that the MEC has visited the municipality for more than one occasion in an effort to assist in solving the problems.



RECOMMENDATIONS

2.6 The Select Committee recommended that:

The Department of Provincial and Local Government, the provincial Department of Housing and Local Government, SALGA and Local Government Water Seta should do more in training councillors on their roles and responsibilities.



The Council should ensure that the new Mayor implements the political recommendations of the Committee of Enquiry and hold him accountable for those matters.



The new Mayor should report monthly to the Council regarding the implementation of the recommendations.



The council should reflect on what policies are outstanding, develop those policies and see to it that these policies are implemented.



Because some municipal managers have to attend to municipal business in Kimberley, a possibility exists that they may use this as an excuse even if they are late for work. There should be a reporting system that will ensure that senior staff report were they would be going.

.

There should be a mechanism that the municipality and SAMWU put in place to address the dispute of staff placement to ensure the smooth running of the municipality



100% increase in tariffs could be viewed as being insensitive and irresponsible especially on unemployed consumers. The Committee calls upon the council to exercise caution and sensitivity when determining tariffs.



It was noted with much appreciation, the support and guidance provided by the MEC for Local Government and Housing in the province. It will be necessary for the Standing committee on Local government and housing to strengthen the municipalities through effective oversight.



The grants from the National Fiscus (Equitable Share, conditional and indigents grants) should be strictly used for the purpose for which they are allocated. In composing its budget, the council should apply the correct ratios to the different programmes of its budget allocation so that service delivery and development do not suffer due to an over expenditure on personnel.



Councilors should focus on their responsibilities on a continuous basis. It is inconceivable how the council could sit around for two years (24 months) possibly 8 council meetings) without getting a report on their finance and a reflection on the crucial responsibility allocated to them by the electorate.



Council officials, especially senior managers have a responsibility, in this regard to bring to the attention of the council when such terrible state of affairs occurs.



Ubuntu Municipality : WEDNESDAY 07 MAY 2003 : 09H00 – 15H00

1. Committee of Enquiry

1.1 The Committee of Enquiry into Ubuntu Municipality was conducted from the 29th to the 31st January of 2003.



1.2 After hearing and deliberating on the problems facing Ubuntu Municipality the Committee of Enquiry recommended that:

Proper channels of communication between councillors and officials are established.

Appropriate powers are delegated to the Municipal Manager to enable him to function effectively.

Proper financial controls are implemented immediately. If necessary, a consultant should be appointed to assist the municipality in this regard.

Proper records are kept of all documentation, especially minutes of meetings.

The personnel situation is addressed immediately with reference to placement, evaluation, training and discipline amongst staff.

The Municipal Manager as accounting officer should be held accountable for the failure to pay deductions from salaries of officials to the relevant institutions.

Council should take appropriate action against Councillor P. Minnies for his failure to pay the purchase price of a dwelling bought from council.

The Municipal Manager should report in writing monthly to the MEC on the functioning of the council.

All amounts owed to the municipality by councillors and officials be recovered immediately or suitable arrangements be made to settle the outstanding amounts.



2. Political Problems

2.1 Before the Committee of Enquiry was established, there was conflict between the Municipal Manager and the Mayor. It seems that councillors misunderstood their role and their relationship with the administration. Hence, there was interference in the administration of the municipality.



The Committee of Enquiry also found that councillors from an opposition party did not accept a mayor from another party and there were no proper policies in place. Additionally, the implementation of Council resolutions was not monitored. Furthermore, councillors had no knowledge of the code of conduct for councillors as enshrined in Schedule 1 of the Systems Act. Moreover, there was political instability within the Council, because in two years it has appointed its fifth mayor.



3. Administration

3.1 The former Municipal Manager lost the confidence of Council and this adversely affected his performance. The former municipal manager and the heads of departments did not have formal employment contracts and performance agreements, as required by law. This was a critical breach, as there were no instruments to measure the performance of the officials. It emerged during the meeting with the municipality that the exact roles and responsibilities of heads of departments, apart from the financial manager, were unclear.



3.2 There is only sketchy information on how the former municipal manager was appointed. He was allegedly not interviewed, but only short-listed. The only person appointed correctly was the financial manager.



3.3 The acting Municipal Manager has been acting for two months on secondment from the District Council. (at the time of this meeting) The report of the Committee of Inquiry was possibly tabled in the Council before the acting Municipal Manager was appointed.



3.4 The municipality stated that the following recommendations have been implemented:

Interference from the Council has discontinued.

The organogram has also been finalised. It will be implemented in July 2003.



4. Finances of the council

4.1 The municipality was in serious financial difficulties. Since 2000, the Council has never received financial statements from the administration and was not aware of the position of the municipality. The Council received the information regarding the financial position of the municipality through the Department of Local Government and Housing.



The council was unable to pay its creditors and at some point, i.e. January 2003, the municipality was unable to pay the salaries of staff.



4.3 According to the manager, the credit control of this municipality was not good either. Since the Acting Municipal Manager was appointed, he has set up a unit of credit control to deal with the finances of the municipality and will also improve on the credit control measures of the municipality.



4.4 The municipality has three separate bank accounts, that is, in Richmond, Loxton as well as in Victoria West. Two of these accounts are held with FNB while one is held with ABSA.



4.5 According to Council cheques are signed by two people, one from the administration and one from the Council (There are four authorised signatories in the council’s cheque and they alternate in case one is not available).Council cheques are signed by the municipal manager and the mayor.



4.6 According to a member of the Committee of Enquiry, subsidies from national and provincial government towards the services of indigent municipal ratepayers were utilised to pay the salaries of officials.



4.7 Bad debt in respect of municipal services was written off instead of handing it over to attorneys for collection. The former mayor instructed a cashier in Loxton to write-off arrears worth R200 000 without a Council resolution.



4.8 Advances, subsistence and travelling costs have had an enormous impact on the cash-flow position of the municipality. However, according to the municipality such costs have now been reduced dramatically as individuals are only allowed to attend to matters outside of the municipality when necessary.



4.9 The Committee of Enquiry also found that the cash-flow problems of the municipality might be attributed to the services payment percentage of between 52% to 54% and the absence of a proper credit control system.



4.10 A councillor purchased a dwelling from Council that has not been paid for to date.



4.11 No accurate asset register is in existence at the municipality.



4.12 A member of the Committee of Enquiry stated that contributions of officials in respect of their medical-aid, pension benefits etc. were never paid over to the relevant institutions for a considerable time.



4.13 The Municipality has never submitted its annual report for the financial year 2000/01 and 2001/02 as required by section 46(1) of the Systems Act.



4.14 Nevertheless, the municipality is busy with credit control measures. The municipality is now in a position to pay salaries.



4.15 According to the municipality, costs associated with advances, subsistence and travelling have now been reduced dramatically as individuals are only allowed to attend to matters outside of the municipality when necessary.



5. Delegation of Powers and Functions

5.1 There was no system of delegation of powers and functions for its internal functionaries like ward committees, the municipal manager and financial manager in order to maximise administrative and operational efficiency as contemplated by section 32(1) and (2) of the Municipal Structures Act.



RECOMMENDATIONS

The Committee recommended that :



Acting Municipal Manager should have a copy of the report and should implement administrative recommendations.



Municipality must be encouraged to conclude performance contracts with the Municipal Manager and other senior managers. The performance contracts should be linked with the IDP of the municipality.

The Council should reconsider its resolution regarding its bankers in relation to the financial regulations.

It appears as though the Council will also need to reconsider the debts that were written off and effect the necessary corrections.



The Council and staff will have to work very hard to develop the council’s tax base and to manage the finances properly. The Select Committee welcomes the fact that the municipality is on its way towards sound financial management. However this does not exonerate staff to relax.



The monthly reports should indicate the progress achieved with the implementations of all the recommendations as well as compliance with statutory obligations.



APPRECIATION

The Select Committee would like to express its appreciation for the kind co-operation and assistance by councillors, municipal officials and the office of the MEC for Housing and Local Government in the Northern Cape.



Report to be considered.