Report of the Select Committee on Local Government and Administration on the oversight visit to Ditsobotla Local Municipality

 

 

1.         INTRODUCTION AND BACKGROUND

 

The fact finding visit by the Committee during the 28 and 29 October 2008 emanated from enforcement of Section 139 (1) (b) of the Constitution by the Provincial Executive Council (PEC). This was based on the alleged maladministration and financial mismanagement on the side of the Municipality, which consequently had a direct bearing on service delivery at Ditsobotla.

 

2.         OBJECTIVES

 

The objectives of the fact finding visit was for the Committee to assess the alleged problems and issues causing disfunctionality in the municipal administration; engage and interact with relevant stakeholders in order to solicit their opinions; and lastly to recommend to the National Council of Provinces (NCOP) for approval or disapproval of an intervention being applied to the Ditsobotla Local Municipality.

 

3.                   DELEGATION

 

The delegation of the Committee consisted of the following members and officials:

 

·         Hon B J Mkhaliphi – Chairperson                                     (Mpumalamga Province)

·         Hon M Mzizi                                                                  (Gauteng Province)

·         Hon Kgoshi M L Mokoena                                               (Limpopo Province)

·         Hon A Moseki                                                    (North West Province) 

·         Mr D Mokoena                                                   (Research Unit)

·         Mr M Manele                                                     (Committee Section)

 

4.                   DISCUSSION

     

Below is a précis on the key issues raised and discussed by various stakeholders.

 

4.1 The Provincial Department of Developmental Local Government and       Housing

 

The MEC of the Department indicated that the intervention was primarily based only on the aspects affecting administration. The Department briefed the delegation on the rationale and justification for invoking Section 139 of the Constitution. The presentation made focused on the following five key performance areas:

 

·         Transformation and organisational development;

·         Basic service delivery;

·         Local economic development;

·         Financial viability and management; and

·         Good governance and public participation.

 

Transformation and organisational development

 

The transformation and organisational development challenges that confronted the Ditsobotla Local Municipality included high vacancy rate of Section 57 Managers, lack of adopted policies including delegation of authority and lack of staff capacity to perform adequately in terms of municipal functions.      

 

Basic Service Delivery

 

The service delivery challenges included shortage of water in areas such as Itsoseng, Coligny and Biesiesvlei. There were delays on housing due to lack of bulk services, limited technical capacity in the technical department and lack of operations and maintenance of infrastructure.   

 

Local Economic Development

 

Lack of capacity in the LED Unit, non-functionality of Local Economic Development Forum and high unemployment levels especially among youth were all challenges identified with local economic development in the municipality.

 

Good Governance and Public Participation

 

Good governance and public participation challenges included lack of capacity for ward committees, resulting in poor functionality, conflicting roles of ward committees and Community Development Workers, Council meetings not regularly held and non-implementation of communication strategy.

 

4.2 Business Forum

 

The Business Forum of Ditsobotla supported the intervention to the municipality and raised serious concerns related to lack of control, management of income, discipline, problems of street repairs, lack of shelters in taxi ranks, water services. The Forum emphasized the need for the Ditsobotla Local Municipality to form partnership in developing business plans, promoting emerging small business and the need to appoint qualified Municipal Manager and Chief Financial Officer in the Ditsobotla Local Municipality.

 

 

Mayoral Committee

 

The Mayoral Committee composed of the Speaker, Chief Whip and the Mayor, submitted their opinions and concerns relating to the intervention in terms of Section 139. The Speaker acknowledged that there had been political and administrative problems that contributed to the intervention. He indicated that after consultation with their provincial department, the Municipal Council was finally convinced of the importance of the intervention.  The concerns  raised by the Speaker included financial mismanagement in the Finance Department, forging of Municipal Council’s resolution by the officials, external political interference in the administration and non submission of reports by some of the municipal wards.    

 

The Chief Whip acknowledged that the poor performance and management of the Ditsobotla Local Municipality had contributed to the issuing of the intervention. He indicated that due to lack of technical and funding support to the municipality, his  office, did not support the intervention.  

 

The Mayor raised concerns relating to administration and political unity within the Ditsobotla Local Municipality. Some of the concerns raised included nullification of the appointment of the Municipal Manager by Council, non-submission of financial statements by the Chief Financial Officer, administrative failures to pay third party, officials using RDP housing funds without the Municipal Council’s resolution and municipal officials insulting the Municipal Councillors.

 

One of the Executive Committee Members indicated that some of the Municipal Councillors were in support of the intervention issued in terms of Section 139. He acknowledged that the deployment of the Acting Municipal Manager had assisted the Ditsobotla Local Municipality to perform its functions. Some of the concerns raised by the Executive Committee Member in support of the intervention included vacant position of the Chief Financial Officer, lack of logistical, administrative and secretarial support to the Municipal Council, involvement of officials in politics and lack of professional service generally from the officials.

 

4.3 Organized Labour

 

The organized labour composed of South African Municipal Workers Union (SAMWU) and Independent Municipal and Allied Trade Union (IMATU), which submitted their concerns and opinions on the intervention issued in terms Section 139 of the Constitution. The SAMMU in support of the intervention raised concerns relating to lack of political leadership from the Mayor, lapsing of workers medical funds, managerial irregularities, municipal failure to pay third party funds, calling off of interviews by the Mayor, appointment of officials found guilty of corrupt practices and delays in the appointment of Section 57 Managers.    

 

Furthermore, the representatives from IMATU in support of the intervention raised concerns relating to the delays in the appointment of Section 57 Managers, and lack of access to audit reports.

 

4.4 Municipal Councillors

 

The Municipal Councillors indicated that they were all supporting the intervention invoked by the MEC. In support of the intervention, they raised political and administrative concerns relating to problems and challenges within the Ditsobotla Local Municipality. Some of the political concerns raised by the Municipal Councillors included failure of the Mayor to organize strategic planning workshops, non-participation of the Municipal Councillors in the appointment of Section 57 Managers and the conduct of the Mayor with regard to intimidation. The administrative concerns included overdraft and inability to manage funds, deterioration and lack of administration leadership, failure of the administration to provide adequate logistical, secretarial and logistical support, signing cheques without submission of supporting documents, non-implementation of Municipal Council’s resolution and non-submission of financial statements on municipal expenditure. During the visit, the Committee reprimanded an official of Ditsobotla Local Municipality due to his conduct.

 

4.5 South African Local Government Association (SALGA)

 

SALGA in support of the intervention raised apprehension with regard to the management of the municipality. The major apprehension raised by the Association included high vacancy rate at strategic level, delays in the recruitment and appointment of Municipal Manager, non-deployment of experts within the Ditsobotla Local Municipality and inconsistency on matters relating to intergovernmental relations. The Association emphasized the need to fast track the process of appointing Municipal Manager and the implementation of the turn-around strategy and the harmonization of labour related matters.

 

4.6 Ward Committees

 

The Ward Committee Members from municipal wards 7, 9 and 15 were in support of the intervention, and subsequently raised a number of concerns related to the management of the municipality. Key issues raised included garbage collection problem, lack of consultation on matters related to intervention, non-recognition of ward committee members, lack of funding for the operations of Ward Committee members and lack of policies governing the utilization of resources.

 

4.7 Community Development Workers (CDWs)

 

The CDW’s who were in support of the intervention raised concerns related to communication and programmes. The concern raised was with regard to lack of communication between Political Office and the Community Development Workers. The programme concerns related to the lack of capacity building of CDWs within the Ditsobotla Local Municipality.

 

4.8 Senior Management

 

The Senior Management of Ditsobotla Local Municipality in support of the intervention remarked on political management of the municipality. The major concerns being political interference in the administration, poor relationship between officials and councillors, utilization of old financial systems, non materialization of the meeting of council sub committees, lack of performance management system, lack of cash flow systems, organisational structure not aligned to integrated development planning, irregularities in supply chain management and, non filling of critical positions within the municipality.

 

4.9 Select Committee Observations

 

The delegation of the Committee had observed and noted the good progress made by the Department and cooperation demonstrated by the municipality. The intervention did not take executive obligation, and it did not involve the appointment of an Administrator. A Municipal Manager has been seconded and the intervention has only focused on key performance areas that are related to service delivery. Since the secondment of the Municipal Manager, Ditsobotla Local Municipality has made progress in terms of resuscitating the labour forums and proper financial management.

 

The general challenges within the Ditsobotla Local Municipality rest on the following salient areas which needs immediate address:

 

·         Municipal Finance Department;

·         Failure by the municipality to appoint the Municipal Manager and Chief Finance Officer;

·         Municipality’s absence of a personnel recruitment and retention strategy;

·         The council delays in taking resolutions impacted on the appointment of Section 57 Managers; and

·         Absence of good working relations between the Offices of the Mayor and the Speaker.

 

 

5.         RECOMMENDATION AND WAY FORWARD

           

Having visited Ditsobotla Local Municipality, the Select Committee on Local Government and Administration recommends that: 

 

·         The National Council of Provinces approves the interventions issued by the North-West MEC for Developmental Local Government and Housing.

 

·         The Provincial Department of Developmental Local Government and Housing facilitate the appointment of a forensic investigation on alleged financial irregularities and mismanagement in Ditsobotla Local Municipality.

 

·         Provincial Department of Developmental Local Government and Housing ensures the fast tracking of the appointment of Section 57 Managers and Municipal Manager.

 

·         Ditsobotla Local Municipality ensures the implementation of good labour practices between the municipal management and organised labour and the functioning of Labour Forum in the municipality.

 

·         Serious steps are taken by the Municipal Council to ensure that appropriate measures are undertaken in normalising the relationship between the Municipal Councillors and officials.

 

·         The Municipal Council ensures the functioning of the Municipal Committees.

 

·         Furthermore, the Ditsobotla Local Municipality should also facilitate the signing of performance management contract and assessment of Section 57 Managers and implementation of code of good conduct and working relationship among Councillors and officials.

 

·         The MEC’s office monitors the progress of Ditsobotla Local Municipality through the scrutinizing of periodic reports and a copy is forwarded to the NCOP.

 

·         The intervention be reviewed after a period of six months, which is by 30 April 2009.

 

Report to be considered.