DEPARTMENT OF PROVINCIAL AND LOCAL GOVERNMENT (dplg)

ANNUAL REPORT 2003/2004

OVERVIEW OF THE ACCOUNTING OFFICER

 

This Annual Report of the Department of Provincial and Local Government (dplg) for the 2003/2004 financial year, reflects the achievements and valuable experiences that our Department has gained as we pursued our mandate. These achievements are measured against strategic objectives, outputs and service delivery indicators. The Department has grown from a unit (Constitutional Development Service, 1991) that dealt with constitutional matters, to a fully fledged department whose mandate has evolved since 1994, to promote an integrated system between all three spheres of government. Central to this mandate was the need to promote systems and structures of developmental local government before and after the new system was inaugurated in 2000.

The 2003/04 financial period marks the third year of this new system of local government.

Financial Highlights

The Departmental budget in the year under review was R9.4 billion. This was an increase of 44% from the R6.5 billion that was allocated in the previous financial year. In this report we provide details of Financial Statements as required in terms of the Public Finance Management Act, (Act No.29 of 1999).

In order to perform our core mandate, we have continued to increase our capacity to manage these funds efficiently, effectively and economically. We are proud that dplg has once again received an unqualified report from the Auditor-General.

Legislation

One of the major achievements for the dplg this year was the passing of national legislation. With the leadership of the Portfolio Committee on Provincial and Local Government in the National Assembly (NA), chaired by Mr Yunus Carrim and the Select Committee on Local Government and Administration in the National Council Of Provinces (NCOP), chaired by Mr Bhuti Mkhaliphi, we now have the Traditional Leadership and Governance Framework Act, 2003 (No.41 of 2003) and the Municipal Property Rates Act, 2004 (Act No.6 of 2004). The Department also drafted amendments to the Local Government Systems Act, 2000 (No.32 of 2000) in order to reconcile this Act with the then proposed Municipal Finance Management Bill.

These pieces of legislation provide yet another important contribution towards defining the intent of national policy and mechanisms for development. The Department continued to oversee the implementation of all relevant legislation. This year also saw the inauguration of the Commission on the Promotion and Protection of the Rights of Cultural and Linguistic Communities in terms of Section 185 of the Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996).

With regard to the Disaster Management Act, 2002 (Act No.57 of 2002), which was promulgated in the 2002/2003 year, dplg has developed an intergovernmental support programme to enhance disaster preparedness and management capacity, at all spheres of government. We hope that these endeavours will go a long way towards improving human security and reducing the vulnerability of communities to natural and human made disasters.

Provincial Support Programme

The Department has been working with all nine Provinces to focus on the development of Provincial Growth and Development Strategies. In the last year, this work culminated in two important national working sessions held on 10 August 2003 in Mpumalanga and on 30 March 2004 in North West.

Recognising the renewed mandate received by the Government in the April 2004 National and Provincial elections, the dplg will provide additional support to Provinces as provincial strategies are refined. These strategies will seek to build synergies between the Integrated Development Plans (IDPs) of municipalities and the National Development Spatial Perspective (NDSP). To date, five provinces have completed the drafting of Provincial Development Strategies.

Local government support programme

In the year under review, the bulk (R6.3 billion) of the dplg budget was spent on basic service delivery such as water, electricity, refuse removal and sanitation. Working with all spheres of government, the dplg focused on accelerating the delivery of free basic services and the extension of these services to the poor, particularly at the local government sphere.

Public participation and community empowerment

The Department also made good progress in developing practical mechanisms for public participation. A major highlight in this regard was the National Conference on Ward Committees that was held in June 2003.

This was a national gathering of key stakeholders whose aim was to deliberate on strategies and actions that would improve the effectiveness of Ward Committees. The conference was enriched by the active participation of Members of Parliament, Members of Executive Councils (MECs), Members of Provincial Legislatures, Mayors, Speakers, Councillors, Ward Committee members, non-governmental organisations and officials from all three spheres of government.

The importance of this gathering was its success in confirming clear guidelines and operational standards for Ward Committees. This will assist in efforts towards an accountable system of local government.

Municipal Performance Excellence (Vuna) Awards

A major step was initiated by the dplg, to recognise the performance of municipalities who excel even under the difficult conditions that have been inherited from the past. In June 2003, local government practitioners and stakeholders witnessed the launch of the first Municipal Performance Excellence (Vuna) Awards. These Awards were facilitated in provinces and nationally through a partnership agreement between dplg, the South African Local Government Association (SALGA), the Development Bank of Southern Africa (DBSA) and the National Productivity Institute (NPI). The Provincial Awards were held during September and October and the National Awards were held in December 2003 50 as to coincide with the third anniversary of the new system of local government.

The Department has received positive feedback on the Vuna Awards Programme and intends strengthening the programme, as South African citizens are the major beneficiaries of improved municipal services. Currently, Provincial Departments of Local Government are preparing for the Provincial Award events, which will culminate in the announcement of National Award winners in December 2004.

Our internal value system and strategic direction

At dplg we are proud of the opportunity that has been provided to us, the opportunity to serve our people to the best of our abilities. Our value system is guided by the objectives of government and is informed by the Batho Pele (People First) principles of the Public Service. This approach is reflected in the dplg value chain which provides a summary of our value system, our strategic objectives, our organisational structure, the services we provide and the important interface with our citizens as we continue to put into practical effect the people's contract with government.

The dplg's Strategic Plan for 2004/05 to 2006/07 provides greater detail on the following key strategic objectives of our Department:

· Ensure stability, predictability and efficiency in the governance system;

· Strengthen provincial governance and accountability;

· Ensure effective functioning and stability of local government;

· Monitor performance and evaluate service delivery; and

· Strengthen the dplg corporate capability.

As we enter the Second Decade of Democracy our department and officials are poised to serve the South African public to the best of our abilities. The government's vision of a better life for all is clear.

The targets that we must all achieve, together with our social partners are also clear. The policies and legislative frameworks are in place.

All that is required is implementation and the active support of the national sphere of government to both the provincial and local spheres.

Director-General Lindiwe Msengana- NdleIa