PRESENTATION TO NCOP ELECTCOMMITTEE ON ADMINISTRATION ON THE IMPLEMENTATION
OF SECTION 139(b) IN MAFIKENG LOCAL MUNICIPALITY BY THE EXECUTIVE MAYOR CLLR NOMVULA HLANGWANA
27 OCTOBER 2004
TABLE OF CONTENTS
1. Background
- Introduction of Section 139(b)
- Reasons for intervention
- Maximization of the intervention
- Assumption of powers and functions of the Executive Mayor
2. Achievements
2.1. Without Section 139(b)
2.2. Through Section 139(b)
- Challenges
- Recommendations
BACKGROUND
1.1.
Introduction on Section 139 (1) (b)
- Introduced by the Provincial Government on 3rd September 2003.
1.2. Reasons for intervention
- Failure by the Municipality to fulfil its Constitutional obligations.
- Failure to address backlogs encountered by the municipality.
- Failure to raise enough revenue and maintain proper cash inflow.
The above situation arose as a result of:
- Failure to combat high level of non-payment and to make provision for non-payment of revenue billed to consumers.
- Inappropriate and expensive organizational structures and expenditure patterns.
- Unaccounted for water.
- Poor budgetary controls.
- Cash management.
- Lack of human capacity in Treasury Department.
- Mafikeng Local Municipality agreed to the intervention for the following reasons:
- That it will be based on co-operative governance.
- It will unlock finances desperately needed.
- It will empower the municipality.
MAXIMISATION OF THE INTERVENTION
- 10 March 2004, EXCO intensified the desired outcomes were not realised.
- EXCO undertook to find R30m to fund the intervention (only RI,9 has come through)
POWERS OF THE EXECUTIVE MAYOR
- The powers of the Executive Mayor as contained in Section 56 (1) of the Municipal Structures Act were taken by the MEC when the intervention was intensified.
- The MEC has delegated these powers to the Implementing Agent, who is also the Acting Municipal Manager.
Current Situation (Achievement without intervention)
On its own the council has achieved the ff.
- Managed to identify the source of unaccounted water. This will improve council financial situation by about R1 .4m
- Real movement in addressing the service delivery backlog. E.g.
- By the end financial year, 2033 households will be connected to receive piped clean water.
- 2325 subsidy linked houses will be built.
- Managed to repair street light (1 500).
- Resealing of roads.
- Electrifying or in the process of electrifying 1592 houses in eight villages.
- We have outsourced the Internal Audit function to the District (this is more cost effective).
- implemented the interests incentive scheme for consumers- this has improved debt collection.
- currently establishing customer care centre to deal with debt collection and consumer queries.
- 200314
Budget and IDP finalized ahead of schedule with greater internal and external participation.
Benefits from Section 139 (b) (Achievement brought by Section 139 (b)
- Grass cutting.
- Replacement of 36 street names.
- Repair of potholes.
- Formulation of indigent, controls policies debt collection and credit control policies.
- Formulation of implementing strategies and procedures.
- Conducting change management workshops
Challenges/ outstanding issues
- Completion of staff placement.
- Aligning the budget to IDP.
- Reducing the salary bill to be within the national norm of 33-35%. Currently stands at 48-50% of the budget.
- Signing of performance contracts.
- Conclusion of disciplinary cases.
- Broadening revenue base (getting back license to distribute electricity).
RECOMMENDATIONS
- That Section 139 (b) be lifted.
- That Government pay its debts regularly, and encourage the government employees and those of parastatals to sign the stop order to pay municipality for services.
- The Provincial Department R3Om they committed to assist the Municipality.
- That the Department of LG and Housing play a critical role in restoring the license to distribute electricity to Mafikeng Local Municipality.
- The powers of the Executive Mayor be restored.