The Chairpersons of the said working groups were appointed in terms of the SALGA Constitution. Moreover the criteria for the chairpersonship of working groups were also informed by the guidelines and principles for deployment as approved by the NEC. This was effected with the express aim of ensuring political accountability to the relevant governance structures of the organisation.

The deployment principles and guidelines assisted provinces in appointing their respective political representatives (with one alternate) on each of the six national working groups.

Meetings of the working groups are being successfully convened in accordance with the SALGA schedule of events. Thus far meetings of the working groups have been well attended with meaningful participation from all the provinces. Regular reports are submitted from the working groups to the NEC for consideration.

3.5 Working Group Clusters:

Working Group Clusters have been established by the NEC and they are to be chaired by the Deputy Chairpersons:

The primary objectives of Clusters are:

The only challenge that remains, for the clusters, is to convene as expected and the reason for this is that the Working Groups have yet to engage in strategic planning sessions with their respective Cluster Chairpersons in order to arrive at a structured but practical programme of action.

SALGA'S ROLE AND EFFECTIVENESS IN IGR STRUCTURES

National Conference, 2004, resolved that SAL GA must develop a set of principles that must inform and guide the development and implementation of legislation for and affecting local government. These principles should relate to all legislation, including legislation that at first glance does not appear to impact on local government.

In this regard SALGA participates, amongst others on the following IGR structures:

With the promulgation of the Intergovernmental Relations Framework Act, SALGA is entitled to participate in all National and Provincial IGR structures that we currently do not participate in.

To strengthen SALGA's technical capacity and for effective participation in IGR forums, Provincial Heads of Administrations have been encouraged to attend at the very least, the Local Government MINMEC and Technical MINMEC meetings. The NEC has also approved reporting guidelines for SALGA representatives attending IGR Forums. These reporting guidelines will improve SALGA's ability to communicate issues and decisions of the respective IGR structures.

The NEC adopted the following principles of deployment to IGR structures:

In certain instances external factors preclude or diminish our effective participation on IGR structures with the two main examples being the late receipt of notices of meetings and the postponement/ cancellation of meetings at the eleventh hour by national and provincial sector departments.


5 SALGA’S ROLE IN INTERNATIONAL RELATIONS

National Conference, 2004, resolved that SALGA actively participate in the governance and programmes of UCLGA and UCLG by providing political leadership and technical support wherever possible and actively seeking election to office.

5.1 The United Cities and Local Government of Africa (UCLGA)

SALGA and the City of Tshwane jointly hosted the UCLGA Founding Congress in May 2005 and I take this opportunity to congratulate The Honourable Executive Mayor of Tshwane Father Smangiliso Mkhatshwa for having been elected as the 1^st President of the United Cities and Local Governments of Africa. This feat was achieved as a result of South Africa being unanimously nominated for the Presidency of the Congress.

With this historic accomplishment SALGA will continue to play a critical role in ensuring that the UCLGA is nurtured into becoming the organisation as defined by the Founding Congress. The UCLGA aims to be the united voice and representative of local government in Africa; to contribute to the achievements of greater unity, to foster peace and solidarity amongst the peoples of Africa; to contribute to the political and socio-economic integration of the continent and to promote and defend common African positions on issues of interest to the continent and its peoples. Under the guidance of its President we have no doubts whatsoever that UCLGA will achieve its objectives.

In the run-up to the Founding Congress political tensions were evident especially with regard to the location of the UCLGA Headquarters, the role of municipalities, Municipal Development Programme and ensuring good attendance. SALGA played a pivotal role in ensuring that these tensions be politically managed. In this regard the NEC established two Political Task Teams namely the Lobbying and Substance Task Teams under the Chairpersonship of Mayors Masemola and Nkosi respectively. National Office deployed dedicated teams of officials to provinces to mobilise delegates to attend in large numbers.

The question of the location of the UCLGA Headquarters was satisfactorily resolved by the Congress adopting a resolution, mainly influenced by SALGA, that Rabat, Morocco not be the preferred African choice until it becomes a full member of the African Union. SALGA also contributed to the role of MDP being omitted from the UCLGA Consultation.

The UCLGA Steering Committee led by Mayors Masondo, Nkosi and Mkhatshwa, gave valuable strategic direction with regard to our political preparations for the event, whereas the Organising Committee comprising the SALGA CEO and City Managers of Joburg and Tshwane and Ekurhuleni contributed immeasurably to sound and hassle free logistical arrangements. By all accounts we had fulfilled our pre- Congress resolve in delivering a meaningful and successful congress on behalf of South Africa. I would therefore like to thank and congratulate all member municipalities, SALGA NEC, donors, sponsors, and officials for a job well done.

Our challenge on international matters must therefore be geared towards achieving active participation in the governance of UCLGA and UCLG. SALGA needs to ensure that we receive regular reports on the activities of these structures and that we proactively contribute to and influence the agendas of these organizations.

5.2 World Summit on Information Societies

SALGA through the Office of the CEO took advantage of the opportunity to participate in the preparatory processes towards the 2^nd World Summit of the Cities and Local Authorities on the information Society. The Summit will take place n Bilbao in Spain, in November this year. This summit will adopt a Declaration and a plan of action which will reflect the specific commitments adopted by world local governments and their partners to set in motion a fair and diverse information society which will facilitate new opportunities for development over the next ten years.

Honourable members will agree with me that the emerging challenge facing local government and society at large is the divide that is being created by the digital revolution. It is the communities within local governments that are affected by the digital divide, and the speed at which this gap is growing is cause for serious concern. Whilst, African Local governments have the burden and challenge of infrastructural backlogs and poverty, most of the communities that we serve are being further marginalised and left behind on the digital revolution.

It is therefore incumbent on the SALGA leadership to consult with the various critical role-players in the sector in order to convene a pre- summit workshop to arrive at a clear and consolidated South African local government position on this matter.

6 COUNCILLOR REMUNERATION

National Conference, 2004, resolved that SALGA actively pursue the review of the basis of remuneration of councillors with a view to achieving a consistent approach across all spheres of government.

At the meeting held on 28 July 2005, between the DPLG Ministry and SALGA National Office Bearers, we were pleased to acknowledge that much progress has been made to improve our remuneration for the current financial year. SALGA's view is on councillor remuneration were incorporated into the draft document.

It also emerged at our meeting with the DPLG Ministry that while SALGA and DPLG were working closely on this matter, there was an urgent need for National Treasury and the Presidency to forge a closer working relationship with us in order that a common government position is arrived at. To this end, Minister Mufamadi expressed the view that the four government role-players should meet.

It has further been acknowledged that under the current dispensation, municipal councillors are the first in line in so far as problems at the community level require to be addressed. Testimony to this acknowledgement is the recent spate of community protests pertaining to municipal service delivery issues.

The various and enormous pressures on councillors as the front line of government demands of us to address and respond to issues and the needs of communities proactively and timeously, making this a twenty four hour position, every day of the week, all year round. Therefore the need to increase the number of full-time councillors cannot be deferred any longer; otherwise service delivery problems will persist.

Other mitigating factors are:

A comprehensive report on this matter will be presented to the Assembly as a separate agenda item.

7 SALARY NEGOTIATIONS

The NEC has received regular reports and updates on the status of negotiations and has made every attempt to avoid labour action. To this end, the NEC, at a critical juncture, mandated the SALGA Chairperson to meet with the leadership of SAMWU and IMATU in an effort to resolve matters in the interest of labour harmony.

Of concern to SALGA is that the Unions also issued certain demands which fall outside of the ambit of the bargaining process. SALGA remains steadfastly committed to the negotiations process but notwithstanding our good faith, the unions opted to take to the streets.

Incidents of lawlessness, trashing and intimidation characterised the nature of the three day strike, making it patently clear that municipal unions lacks strong leadership. Our members are obliged to report all incidents of lawlessness to the law enforcement agencies.

Prior to the strike action, SALGA began a process of preparing municipalities to ensure the effective management of the strike by issuing information circulars and providing a range of other services as per SALGA's Strike Management Plan.

The financial' implications of the current offer translates to an average of 6,17%, 5,03% and 4.90% over the three year period compared to the unions 9% or R400 and a minimum wage increase of R3000, which translates to an unaffordable 11.77% in one year. The current municipal wage bill stands at 23.15 billion.

Why the Union demands are unreasonable:

8 ELECTIONS

SALGA National Conference, 2004, resolved that municipalities should budget for community awareness programmes and infrastructure support for the election process.

The successful delivery of free and fair elections forms the cornerstone of any constitutional democracy and we call on all municipalities to fulfill the SALGA 2004 National Conference mandate.

The constitutional rule of delivering elections is that of the IEC and Local Government is responsible for enhancing democracy and community participation, which includes participation in the electoral process. To ensure this happens, provincial election task teams have been established in most provinces.

Whilst the IEC remains responsible for delivering the elections, the role of member municipalities in the administration of elections is of critical importance. The majority of our municipal managers perform the function of municipal electoral officers for the IEC. Whist, this may be administratively and financially convenient, the question of the neutrality and political independence of municipal managers has been raised within some political circles. SALGA therefore needs to discuss the implications of municipal managers acting as electoral officers for the IEC.

Our country, with its various institutions of governance is seen as an exemplary model of democracy not only on the African Continent, but in the world at large. We cannot and will not compromise the political integrity of the entire elections process.

SALGA has agreed to establish Municipal Electoral Units as a result of an agreement which was negotiated between SALGA and the IEC regulating the transfer process of electoral project coordinators. However, this transfer process has been suspended pending the outcome of litigation launched by electoral project coordinators against the IEC.

Voter Registration day has been set for 3 September 2005 and all municipalities have been informed of this. Local Government has been encouraged (through SALGA’s provincial offices) to implement programmes through ward councillors and ward committees in particular to focus on the youth and those communities affected by the re- demarcation of wards.

After the elections we must be ever so mindful that there might be changes in the composition of SALGA's governing structures, necessitating the convening of the National Conference with the express aim of electing new leadership should the need for this arise, it will pose an unprecedented but not insurmountable constitutional challenge as the SALGA constitution stipulates that the National Conference be convened every thirty (30) months from the date of the last one.

In addition, SAGA is obliged to embark on comprehensive capacity building programmes for the new intake of councillors. Previous elections have clearly shown that subsequent to the electoral process, the make-up of organised local government is different. Therefore these new councillors would have to be prepared for their roles by way of induction and training programmes.

This issue and other matters on elections will de dealt with in more detail, when the IEC makes a presentation to this Assembly, today.

9 ELECTRICITY DISTRIBUTION INDUSTRY RESTRUCTURING

National Conference, 2004, resolved, that SALGA continues its support for, and commitment to, the EDI restructuring and must put mechanisms in place to ensure effective feedback to Provinces and Municipalities.

SALGA has been extensively involved at political and technical levels in addressing key issues pertaining to EDIR.

In the period since the last Members Assembly, SALGA has consulted with municipalities individually, and collectively through workshops in all provinces. The purpose of these workshops was to report back to municipalities on the conference resolutions, and to provide an update on the EDIR process.

SALGA has been instrumental in various processes leading to the adoption of agreements on certain fundamental principles, including:

The target of establishing the first RED by 1 July 2005 was met, and a signing ceremony was held on 4 July 2005

Whilst significant progress is being made in the restructuring process a number of fundamental issues remain unresolved and these include:

Communication with EDI Holdings and other key stakeholders involved in the process is ongoing. SALGA has new representatives who are active participants on the board of EDI Holdings with the CEO, Dr Makhosi Khoza and Mr Sandile Maphumulo, from eThekwini ~municipality.

SALGA's challenge on this matter is to ensure that the above issues are dealt with effectively, and to continue the interaction and coordination of activities with provinces and member municipalities.

10 OFFICE BEARERS HANDBOOK

The March 2005, Members Assembly resolved that an Office Bearers Handbook should be developed, using the Mayoral Handbook as a guide. The Handbook should incorporate all new legislation that have a bearing on the role and functions on office bearers.

A draft of the Municipal Office Bearers Handbook has been prepared and the project is viewed in such a serious light that a legal and technical task team has been established to review its content. This process was deemed necessary given the current review on role profiling of elected public office bearers in general which is being conducted by the Presidency. A second draft will then be tabled at the G&IGR Working Group at its August meeting, before being tabled at the NEC for final approval.

With the intention of creating a semblance of conformity in terms of the functioning of elected public representatives across the spheres we are of the firm view that serious attention be accorded in creating synergies between toe Office Bearers and Ministerial Handbooks.


11 FACILITATION OF SECTION 57 DISPUTES:

SALGA, at both national and provincial level, is dealing with disputes involving Section 57 employees and the following is a summary of the current situation:

There are sixteen (16) cases of suspensions with pay, six (6) suspensions resolved with settlements, one (1) suspension and disciplinary action, two (2) disciplinary actions without suspension and fourteen (14) Dismissals.

Whilst these current 39 cases may not seem considerable, these figures do not include the current vacant positions and new cases. The stability and efficient functioning of local government requires stable administrations. We cannot allow the developmental agendas at local level to be diluted by non- existent or weak administrative leadership. SALGA and specifically member municipalities need to ensure that we effectively manage the disruptions caused by political instability and disciplinary actions within our administrations.


12 PENSION FUND RESTRUCTURING

The Political Leadership of SALGA identified a need to be in charge of the entire Pension Fund restructuring project. In order to demystify the process thus far, the CEO has been tasked by the National Office Bearers to compile a comprehensive report indicating the challenges that are being encountered in the finalisation of the restructuring project.

13 MEETINGS WITH KEY STAKEHOLDERS

The Chairperson has attended the following meetings with SALGA’s key stakeholders in the past five months:

14 COMMUNITY PROTESTS

The NEC at its meeting on 3 June 2005, discussed the issue of community protesters and, through the contributions by all the provincial chairpersons, characterized the situation as follows:

Based on the above assessment the NEC resolved as follows:

15 PROJECT CONSOLIDATE:

Since the launch of Project Consolidate, SALGA has rallied behind and supported the visions of the project. In order to pave the way towards improved and accelerated service delivery, SALGA adopted the view that the local sphere must take responsibility for its own destiny and mobilize its own resources where possible. This is based on the fact that municipalities themselves are best placed to advise other municipalities on how to manage resources. SALGA therefore encourages the formation of the technical teams, consisting of qualified municipal officials, to participate in the implementation of this programme.

It is encouraging to note that in spite of a large proportion of our municipalities being part of Project Consolidate, many of them are excelling in different aspects of the Project. This has led to the creation of Management Support Teams, whose membership is mainly derived from municipalities with best practice.

SALGA, at a national level, has been providing strategic direction to our provinces who are working with provincial governments and municipalities to achieve the objectives of Project Consolidate. Provincial Offices have assisted member municipalities with the development of project plans for the implementation of programmes at municipal level.

All provinces both politically and administratively, actively participate in the respective Provincial Project Consolidate Steering Committees or Task Teams, which were established to manage, implement and monitor the programme.

The following challenges have been highlighted by the provinces:

It is quite apparent from be above that whilst an effort is being made by SALGA to support Project Consolidate a number of challenges still remain. Notwithstanding SALGA commits itself to continue supporting Project Consolidate and to proactively address the challenges faced by the provinces; specifically the lack of support and participation from the sector departments at a provincial level.


16 LOCAL GOVERNMENT SETA

On 3 March 2005 the Minister of Labour announced that the Local Government and Water SETA (LGWSETA) has been re-certificated as the Local Government SETA for the period April 2005 to March 2010 and that the Water Chamber was to be amalgamated into the Energy SBTA.

This situation led to a need for the LGWSETA to discuss and amend the constitution in order for it to reflect the new landscape and meet the current challenges Upon the re-certification of the LGSETA the Minister mandated the Chairpersons and Chief Executive Officers of the Energy SETA and the LGSETA to expedite the amalgamation process of the Water Chamber to Energy SETA and conclude this process by 1 April 2005.

However, the biggest challenge faced by the authority is the massive resistance by the South African Municipal Workers Union (SAMWU) and the Independent Municipal and Allied Trade Union (IMATU) who have refused to accept the Minister’s removal of the Water Chamber from the SETA, and have continually frustrated any progress on the new constitution of the LGSETA. This is further exacerbated by the fact that IMATU is currently chairing the LGSETA in line with the rotational system. It is further noted that when the unions are unable to influence the adoption of decisions to their advantage, they abuse the chairpersonship by deliberately violating the generally accepted decisions making procedures.

SALGA and DPLG have argued strongly against any defiance of, and refusal to comply with national government policies and directives and this matter has resulted into a standoff between SALGA and the unions on the LGSETA authority.

SALGA has arranged a meeting with the Minister of Labour in an attempt to resolve the impasse and to review the working arrangements of the LGSETA with special reference to the rotational Chairpersonship.


17 LOCAL GOVERNMENT SECTOR SUMMIT

The Local government Sector Summit, organised under the auspices of the South African Local Government Bargaining Council, was held in March 2003. The Sector Summit Accord and the general implications thereof for SALGA were presented to and noted by the SALGA National Executive Committee. The NEC has delegated its Working Groups to deliberate the resolutions of the Sector Summit that have implications for SALGA to thereafter advise accordingly.


18 PUBLIC SECTOR INTEGRATION

National Conference resolved that a consultative instrument should he established forthwith to include all the stakeholders affected by the process, to give effect to consultation on the matter.

The Integrated Public Sector is a programme led by national government aimed at changing the institutional paradigm of the state across all spheres of government to achieve the seamless delivery of services.

SALGA at a technical level, is a partner with key stakeholders, including the Presidency, DPSA, DPLG, National Treasury and other entities in the development of a conceptual policy and implementation framework to realise the objectives set by government. The initiative has embraced the programme driven by SALGA to restructure the human resource landscape in local government, as an important part of the work that needs to be done towards integrating the public sector.

The critical issues emerging relate to the possible alignment of this work with efforts that are being considered at a National level to review the orientation of the state. This alignment is intended to enhance the delivery capacity of local government.

The challenge for SALGA is therefore to start engaging at a political level with the blueprint or concept paper currently being developed under the leadership of the Department of Public Service and Administration so that a variety of policy questions and challenges that affect local government as a sphere of government are properly considered. To this end SALGA has submitted a proposal to the DPLG Minister to include this matter on the agenda of the next Local Government MINMEC meeting.


19 ASSOCIATE MEMBERSHIP

The SALGA constitution makes provision for associate membership in terms of a criteria adopted by its governing structures. The administration is in the process of developing criteria and principles that will inform this type of Membership.

20 CONCLUSION
At the end of our current term of office, i.e. in a few months time, when the new generation of councilors and officials cast their eyes back over this decade, they will definitely see that through our collective efforts and wisdom we have redefined ourselves into something other than a place of corruption and maladministration.

They should see the reality of a new system of Developmental Local Government, led by a new cadre: a new councillor who refused to be conditioned by circumstances imposed by the past racially segregated local authorities, a cadre who has succeeded to create a system of local governance that is capable of delivering quality services that are affordable and sustainable.

These are Councillors who have chosen to define themselves in action. They are indeed Champions of their own destiny.

Developmental system of Local Government is premised on creating partnerships with civil society and the private sector i.e. People's Contract and People’s Ownership of projects and Programmes, with Councillors accepting openly and unequivocally that they will play their part in ending poverty and bringing about sustainable development.

We are agreed honourable members that our work is to strengthen democracy at the local level, we must entrench a Batho Pele culture. We have to deal head-on with all manifestations that give rise to perceptions that corruption is synonymous with local government.

Perhaps above everything else we would need to instill in the new generation of councillors to be elected after the 2005/6 elections, the connection between good governance and service delivery. There is a need to improve the quality of training and professional development programmes. We need new ways of thinking and doing things, the desire to create and innovate, to solve problems, overcome hurdles and succeed in our endeavours whatever the odds.

This selfless devotion to social improvement must become part of the consciousness of our public representatives, as a realistic and attractive alternative to individual greed and self-aggrandizement pursued at the expense of the poor. This selfish approach to things is clearly contrary to our developmental objectives.

I thank you