REPORT OF THE SELECT COMMITTEE ON CO-OPERATIVE GOVERNANCE AND
TRADITIONAL AFFAIRS ON THE OVERSIGHT VISIT TO
1. Background and Overview
1.1 The Select Committee on Co-operative Governance and
Traditional Affairs, having considered the request by
the National Council of Provinces (NCOP) to consider and report on the
intervention notice invoked in Ngaka Modiri Molema District
Municipality in terms of section 139 (1)(b) of the Constitution, the Committee report as follows:
1.2 In
terms of section 139(1)(b), when a municipality cannot or does not fulfil an
executive obligation in terms of the Constitution or legislation, the relevant
provincial executive may intervene by taking any appropriate steps to ensure
the fulfilment of that obligation, including assuming responsibility for the
relevant obligation in that municipality.
1.3 In terms of NCOP rule 101, the Office of
the Chairperson of the NCOP referred the notice of intervention by the
North-West MEC for Developmental Local Government and Housing in the affairs of
2. Objective
of the Oversight Visit
2.1 The
main objectives of the oversight visit were to determine whether procedural
requirements have been met and also to
verify whether the provincial executive has used its discretion appropriately
before the Committee can approve/disapprove the intervention. Through the deliberations and interaction
with internal and external stakeholders, the Committee wanted to determine how
the provincial executive intends to restore the fulfilment of the relevant
obligations and ensure fulfilment in the long-term. The aim being to ensure
intergovernmental checks and balances aimed at guarding the integrity and
efficiency of the intervention process.
3. Composition of the Delegation
3.1 The Committee Delegation composed of the following Members of
Parliament and officials: Hon MH Mokgobi, Limpopo
(ANC); Hon AG Matila, Gauteng (ANC); Hon JM Bekker, Western Cape (DA); Mr TM Manele,
Committee Secretary (Committee Section); Mr N Mfuku,
Content Adviser (Committee Section); Mr L Ngqameni,
Intern (Committee Section) and Mr D Mokoena,
Committee Researcher (Research Unit).
4. Introduction
4.1 On 16 July 2009 the Provincial Executive
Council (PEC) in North-West Province resolved to invoked section 139 (1)(b) of
the Constitution in the Ngaka Modiri
Molema District Municipality. Subsequently the Office of the Chairperson of the NCOP was
informed of the PEC’s decision to intervene in the
affairs of the Municipality, by the North-West MEC for Developmental Local
Government and Housing.
5. Problems Identified at the Municipality
by the PEC
5.1 The main issues which led the PEC to invoke the provisions of
section 139(1)(b) of the Constitution and assuming the
executive responsibilities at Ngaka Modiri Molema District
Municipality, was a result of a thorough
eight months assessment of the situation by the provincial Department of
Local Government and Housing, as well as
the national Department of Co-operative Governance and Traditional Affairs.
During the assessment period, a ministerial task team led by
the Minister of Co-operative Governance and Traditional Affairs was established to identify areas and sources of conflict than impact
negatively on service delivery and governance in the Municipality.
5.2 The findings of the ministerial task team
relates to performance of functions by the Municipality beyond its
constitutional and legislative mandate; dysfunctional political governance structure; approval of
salary adjustment agreement was in breach of the main collective agreement;
non–compliance with the legislative provisioning governing local government
sphere; irregular, fruitless and wasteful expenditure; breakdown of service
delivery and instability caused by mismanagement of union strike; dismissal of
the Municipal Manager and allegation of fraud, corruption and mismanagement.
5.3 Subsequent to the ministerial task team
findings, the MEC responsible for Developmental Local Government and Housing
appointed an Administrator to execute all executive obligations and functions
of the Municipality, with effect from 1 July 2009.
6. Oversight Visit at
6.1 On the 13 November 2009,
the Delegation of the Committee had interactive and robust engagements with the
internal and external stakeholder of the
6.2 For the purpose of this
report, the submissions made by both internal and external stakeholders are
structured based on the five key performance areas of local government which
are: Municipal Transformation; Basic Service Delivery; Local Economic
Development; Municipal Financial Viability and Management as well as Good
Governance and Public Participation.
(A). Municipal Transformation
and Organisational Development
6.3 Municipal
Council: The submissions made by the Executive Mayor on behalf of the
Mayoral Committee indicated that the Municipality welcomed the intervention in
its affairs by the PEC of the
6.4 Some of the Municipal transformation and
organisational development challenges highlighted by the Municipal Council
included higher level of vacancies in critical positions; manifestation of
strikes; salary agreement which has not yet been finalised with organised
labour and the salary agreements reached outside the bargaining council entered
into by former Municipal Manager without Council approval.
6.5 Administrator:
The Administrator’s report to the Committee Delegation reflected inherent gaps
identified in areas of organogram; performance
management systems; pending labour related cases and lack of proper record
systems in the operation of the Municipality. However, since the intervention
there are regular engagements with the unions to resolve the labour disputes on
salaries. Furthermore, a performance management system has been put in place,
and was aligned to the strategic plan of the Municipality as well as the IDP.
6.6 Provincial Department: The Provincial
Department reported that Municipal Manager was dismissed
in January 2009. Since then there were labour unrests
due to salary adjustment and differences between employer and workers (SAMWU
workers embarked on a strike since May 2009 till August 2009). In addition, the
IDP processes not properly executed as well as the organizational policies of
Municipality were not implemented e.g. the appointment of personnel.
6.7 Organized
Labour: The organized labour, as led by the South African Municipal Workers
Union (SAMWU) submitted to the Committee Delegation that corruption has led to
the invoking of section 139 (1)(b) of the Constitution. Since the provisions
have been invoked in the Municipality, proper administrative systems should be
put in place. SAMWU identified that there was no clear and decisive political
leadership in the Municipality, as a result, many
Council resolutions were unlawful. That Management did subsequently advise the
Municipal Council on those resolutions, however the
Municipal Council implemented them irrespectively. That therefore, the
intervention process should be extended since there was much work that needs to
be addressed and cohesion amongst stakeholders within the municipality still
existed.
6.8 SALGA:
The provincial SALGA official, Advocate Yawa,
reported to the Committee Delegation that he assisted the Municipality during
the confusion by clarifying the roles and responsibilities of the appointed
Administrator, as well as the implication thereof during the intervention
process.
(B). Basic Service delivery
6.9 Municipal Council:
The key service delivery challenges
highlighted in the Mayoral Committee report related to water shortages and
reliance on underground supply of water and the lack of water to be provided to
the community.
6.10 Administrator:
The Administrator’s report indicated that water and sanitation provisions in
all local municipalities under the district (Ditsobotla,
Ramotshere Moila, Ratlou and Tswaing) were being
investigated and assisted on budget, planning as well as on maintenance issues.
6.11 Provincial
Department: Reported that there were huge water and sanitation backlogs
in the District, that there were also community protests over water provision
in Dinokana and acute water shortages in Tswaing and Ditsobotla.
Furthermore, there were also services delivery disruptions due to the strike
action by SAMWU workers, e.g. water tankering and
servicing of septic tanks in rural areas.
6.12 Community
Forums and Organised Labour: Some of the service delivery concerns raised
by the members of the community forums and representatives from organised
labour related to lack of water provision; lack of roads construction projects;
lack of refuse dumping sites; inaccessible roads and general lack of youth
facilities.
(C). Local Economic
Development (LED)
6.13 Administrator:
There were challenges with regard to the local economic development in the Municipality, this was observed through the haphazard
implementation of LED projects. The Administrator has since stopped all new LED
projects and investigated and evaluated existing projects. This exercise
involved local municipalities; the national Department of Rural Development and
the Department of Agriculture and Fisheries to try and salvage LED projects.
6.14 Community
Forums: The concerns raised by the stakeholders pertained to lack of
business opportunities, lack of job opportunities, lack of access to land, lack
of equity in the awarding of municipal tenders, and lack of economic financial
support to small businesses in the Municipality.
(D). Municipal Financial
Viability and Management
6.15 Municipal Council: The Municipal Council submitted to the
Committee Delegation that there were illegal virements
done by the Finance Department, non–adherence to supply chain management
regulations; wasteful expenditure on projects (Brazil Soccer Academy, Belgium
trip and goat and cattle projects); the Municipal oversight Portfolio Committee
on Finance failed to provide financial oversight; the municipal budget was not
aligned with Integrated Development Plan (IDP); withdrawal of Municipal
Infrastructure Grant (MIG) by the national Department of Co-operative
Governance and Traditional Affairs as well as the failure to provide allowances
to the traditional leaders during Council sitting. Despite the above-stated
challenges, the Municipal Council appreciated the support from the Development
Bank of Southern Africa (DBSA) with regards to financial management, as well as
the interns provided by the provincial Department of Local Government and
Housing.
6.16 Administrator: Reported on possible
fraud related to endowment policies; no adherence to supply chain management
regulation; payment of creditors as well as reporting as per regulations on
finances of Council. Since then, the Municipality has now developed an
investment register and investment policy. The Supply Chain Manager has been
suspended and all municipal purchases have since been audited. The DBSA was
currently assisting the Municipality in developing a reporting system, and Gobodo Auditors were reconciling the previous years’
balances.
6.17 Provincial Department: The Provincial
Department reported that the status of the Municipality prior to the
intervention reflected procurement processes in terms
of the requirement of the MFMA not being adhered to; financial management
practices of the Municipality were not sound and lastly, the service delivery
grants were used for other purposes (Disaster Management Grant was part of it).
(E). Good Governance and
Public Participation
6.18 Municipal
Council: Despite the allegations of political interference in the
administration and high political contestation in the municipality, the report
of the Mayoral Committee highlighted progress in respect of public
participation, convening of regular public meetings.
6.19 Provincial
Department: On good governance, the Provincial Department reported that
prior to the intervention, Municipal Council
meetings were not properly convened; the relations amongst the Municipal Councillors were not sound and lastly, the Municipal
Council prioritized non-core functions over basic service delivery.
6.20 Community Forums: Some of the good
governance and public participation concerns raised by the members of the
community forum and organized labour included lack of transparency in municipal
decision making processes, failure by the municipality to facilitate public
participation in 2009/2010
Integrated Development
Planning.
6.21 Traditional Leaders: The concerns raised
by the traditional leaders in respect of good governance related to lack of
communication and proper consultation by the Municipality on matters related to
service delivery.
7. Committee Observations
and Opinion
7.1
The
Committee Delegation expressed the opinion that the While Paper on Local
Government identified performance management as one of local government’s tools
for the implementation of its developmental mandate in terms of the
Constitution. Chapter 6 of the Local Government: Municipal Systems Act (Act No.
32 of 2000) provides the legal framework for performance management and linked
it squarely with the IDP. The Committee Delegation further expressed that the
drafting of the Municipal IDP should provide appropriate mechanisms; processes
and procedures; for consultation with and participation of local communities,
organs of state, traditional authorities and other stakeholders.
7.2 The Committee Delegation
is of the opinion that there is a need to pay greater attention on service
delivery issues, and the Municipality must be responsive and address the
problems raised by the community with the necessary speed. The Municipality
should treat every service delivery problem with the necessary seriousness it
deserves. That all stakeholders in the municipal jurisdiction
must assist the transformation process, within the framework of co-operative
government work.
7.3 The Committee Delegation
emphasized that one of the objects of local government in terms of section 152
(1)(e) of the Constitution was the need to encourage
the involvement of communities and community organizations in local government.
The Committee further expressed that the need for participation in the
Municipality should take place through the structures (ward committee)
established in terms of the Municipal Structures Act (Act No. 117 of 1998). It
must also take place through mechanisms, processes and procedures that exist in
terms of the Systems Act (Act No. 32 of 2000) that have been established by the
Municipal Council (section 17).
8.
Acknowledgement
8.1
The Committee Delegation
acknowledged the varied contributions of the parliamentary staff who
participated in the oversight visit in their various capacities.
9. Recommendations
9.1 Having conducted the
oversight visit to
9.1.1 National
Council of Provinces approves the intervention as issued by the Provincial
Executive Council of the North-West Province in terms of section 139 (1)(b) of
the Constitution.
9.1.2 That National Council of Provinces further
approves recommendations to the Provincial
Executive Council of the
9.1.3 The
Administrator should fast-tract the process of appointing and filling of
section 57 Managers and further assist the Municipality to ensure that the
Service Delivery and Budget Implementation Plan (SDBIP) and the IDP are aligned
with the Municipality budget, and has the support and confidence of the whole
community.
9.1.4 The
North-West MEC for Developmental Local Government and Housing to table
quarterly progress report to the National Council of Provinces on the status of
the intervention in the Municipality; including challenges encountered.
9.1.5 The
South African Local Government Association (SALGA) in co-operation with Local
Government Sector Education and Training Authority to facilitate training and
capacity building for Municipal Councillors; to further deepen their
understanding of their oversight role; legal framework and policies that govern
the activities of the Municipality.
9.1.6 The
Select Committee on Co-operative Governance and Traditional Affairs in
co-operation with the relevant North-West Portfolio Committee in the Provincial
Legislature, to conduct a follow-up oversight visit to the Municipality in
order to monitor and evaluate progress made in respect of the intervention in
the Municipality.
Report to be considered.