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 Mkhondo Local
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
Mpumalanga MEC for Co-operative Governance and Traditional Affairs 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 01 July 2009 the Provincial Executive
Council (PEC) in Mpumalanga resolved to invoked section 139 (1)(b) of the
Constitution in Mkhondo Local 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 MEC for Co-operative Governance and
Traditional Affairs in
5. Problems Identified at the Municipality
by the PEC
5.1 The key problems which led the PEC to invoke the provisions
of section 139(1)(b) of the Constitution and assuming the executive
responsibilities at Mkhondo Local Municipality
relates to systemic problems, whereby, the
Municipality as a whole has failed to effectively deliver on its constitutional
mandate. There was no alignment and integration of the IDP (Integrated
Development Plan) and SDBIP (Service Delivery and Budget Implementation Plan)
within the municipal system. The IDP and
its related SDBIP appeared to exist outside of the normal functioning of the
system and were not adhered for compliance, and not used as a management tool.
The performance management measures were largely activity centred, and not
linked to the actual delivery of services.
5.2 Furthermore, monitoring and evaluation
was not integrated throughout the Municipality. The service delivery system
problems often resulted in duplication and wasted effort, contributing to the
difficulties in coordination and management of large scale interdepartmental
programmes and projects. This
exacerbated the silo approach to delivery and the limited flexibility,
innovation and optimisation of resources, especially in the areas of effective
human resources deployment and overheads minimisation. This in turn resulted in
serious challenges around issues such as poor service delivery, loss of
governance control, poor management, anomalies in supply chain management,
corruption and internal squabble that undermined effective service delivery.
5.3 The MEC of Co-operative Governance and
Traditional Affairs appointed Mr Misabeni Khosa as an Administrator at Mkhondo
Local Municipality, to assume responsibility of the day-to-day operations and the maintenance of essential service
delivery standards. In addition, to plan and roll-out a structured turn-around
strategy that will create sustainable improvement of the ongoing management of
the Municipality. It was envisaged that the above process will take a minimum
period of six months full-time involvement of the Administrator and his team,
before they commence withdrawal. The work
of the Administrator commenced on 1 August 2009 and is anticipated to end on
January 2010.
6. Oversight Visit at
6.1 On the 12 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 Speaker and Mayor indicated and
reflected that the Municipality welcomed and acknowledged the intervention in
its affairs by the PEC of the
6.4 Administrator:
Some of the organisational development challenges indicated in the report
pertained to the lack of human resource capacity; fragmented and inadequate
fleet management policy; resignation of the Chief Financial Officer (CFO) and
Town Planner; filling of critical positions of section 57 Managers and lack of
approved human resource development policies. A total number of 14 officials
have been suspended and were currently undergoing disciplinary hearings.
6.5
Despite all the challenges
indicated, the Administrator reported to the Committee that progress has been
made in respect of developing 28 organizational policies which are aimed at strengthening and improving the technical
ability of the organization. The organizational structure has
been redesigned to fulfill public participation mandate and legislative roles
of Councilors, furthermore, those disciplinary hearings on
suspended officials will be finalized in December 2009. Since the clinic was burned down in the township, two
mobile clinics have been put in place to ensure health services are rendered to
the community.
(B). Basic Service delivery
6.6 Municipal Council:
The key service delivery challenges
highlighted in the Mayoral Committee report related to huge infrastructure
backlogs (ageing infrastructure, repairs, maintenance and rehabilitation);
withdrawal of the Development Bank of
South Africa (DBSA) technical support (Engineers and Young Professionals); lack
of proper and effective service delivery including service delivery projects
such as the main water pipeline on the Wakkerstroom
road; housing development in Eziphunzini; bus and
taxi route in Thandukukhanya and streets
rehabilitation not completed on time. Despite these challenges, the Mayoral
Committee reported that the intervention on July 2009 has taught the Municipal
Council the importance of consolidating the powers and responsibilities of the
Mayor and Municipal Manager in order to ensure implementation of decisions and
political oversight on service delivery matters.
6.7 Administrator:
Some of the service delivery challenges highlighted in the report of the
administrator related to lack of planning on service delivery projects across
all the 15 wards of the municipality, lack of efficient and effective
monitoring and evaluation systems and mechanisms, lack of funding for critical
infrastructure projects, projects were implemented and did not form part of the
IDP and community participation processes.
6.8 The Administrator reported to the Committee that progress has
been registered in some areas in speeding up service delivery. A number of
emergency water supply projects have been initiated in partnership with a
company called Mondi including the erection of JoJo tanks; supply of Lister Pumps and purifying systems;
repair of boreholes; connection of pipelines and taps; supply of bulk drinking
water reaching communities of
6.9 The Municipality is partnering with the
National Minister of Rural Development and Land Reform to launch a pilot
project in Donkerhoek and neighbouring farms, KwaNgema and Madlangempsi. This will supplement the Municipalities own
sustainable rural development programme. In addition, the Municipality in
conjunction with various government departments has embarked on the above
programme and is in the process of establishing a Local Poverty War Room. A door-to-door programme has been actioned for profiling household’s needs in order to ensure
that the poorest household members are captured on a database, in order to
provide shared intervention for co-ordinated assistance across departments
(Ward 2, 6 and 8 are the priority wards in the initial phase).
6.10 In addition, a project on electricity has been commissioned
in line with the supply chain management policy; fencing of schools in
accordance to rural development programme; assistance in the implementation of
rural development programme has been provide; engagement with the Department of
Energy on universal access in order to ensure implementation and community
benefits of electricity project has been secured; financial estimation of
possible service delivery projects has been designed and engagement with the Department of Co-operative Governance on the
Municipal Infrastructure Grants (MIG) are underway on matters related to
service delivery.
6.11 Ward Committees: Although there was much dissatisfaction on the snail pace of service
delivery in the municipal jurisdiction, however, there was acknowledgment on
the continuation of the electricity project especially in Ward 15.
(C). Local Economic
Development
6.12 Members of 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 and non-functionality of the Local Economic
Development Unit in the Municipality.
6.13 Administrator:
The Administrator reported that the Municipality has now partnered with Mondi in the training of at least 600 youth, unemployed and
women across all communities in the municipal area in woodwork, carpentry,
welding and painting. The
(D). Municipal Financial
Viability and Management
6.14 Municipal Council: The report presented
by the Mayoral Committee indicated that in terms of rural development, the
municipality is faced with the challenges of supplying new areas and households
with municipal services, and reliance on equitable share and conditional
grants. Despite these challenges, the Mayoral Committee expressed appreciation
of the assistance provided by the district, some Provincial and National
Government Departments on provision of boreholes, toilets, access roads,
schools and clinics in the community.
6.15 Administrator: A number of activities are taking
place on a continuous basis to “clean up” on anomalies in the short term. Some of the key activities include the use of
municipal credit cards has been stopped to avoid the continuance of abuse. A
number of anomalies have been identified such as the contract of R14, 7 million
rand for a roads project where only a letter of
appointment can be found and no formal contract. The entire municipal supply
chain management is under review and anomalies addressed appropriately. Some of the anomalies are under formal
investigation by the investigators.
6.16 The Administrator further reported that
the 2008/2009 financial year budget has not yet been closed due to a number of
anomalies discovered, including the fact that bank reconciliations
have not been properly completed since 2006, clearing of audit queries and
stock adjustment queries. This issue was
receiving priority attention. The Administrator will shortly be engaging a debt
collection agency to collect and reduce the current outstanding debt of R69
million. The costs of this are self
funding since the agencies fees are funded from a percentage of the debt that
they will recover. Lastly, the Administrator has signed a letter of engagement
with the Auditor-General to address audit queries of the Municipality.
(E). Good Governance and
Public Participation
6.17 Municipal
Council: Despite lack of regular communication feed back to the community
and stakeholders, the report of the Mayoral Committee acknowledged that the
intervention has revealed the importance of communication with the public.
6.18 Administrator: Some of the major
progress reported by the Administrator in respect of good governance and public
participation included clarification of the roles to the internal and external
stakeholders; clarification of the roles and responsibilities of the Mayoral
Committee and the office bearers; scheduling of the Council meetings; improving
communication system and co-ordinating the meeting of Ward Committees and
ensuring the consideration and approval of the IDP process plan by the Council.
Furthermore, the Administrator has had several
meetings with the members of the Community Concerned Group to update them on a
weekly basis on the affairs of the Municipality.
7. Committee Observations
and Opinion
7.1
The
Committee Delegation expressed 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.
7.2
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 Mpumalanga 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 Mpumalanga Province to extend the
intervention period by six months, in order to ensure that during the extended intervention
period, minimum standards of service delivery will be achieved in the
Municipality.
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
SDBIP and the IDP are aligned with the Municipality budget, and has the support
and confidence of the whole community.
9.1.4 The MEC
for Co-operative Governance and Traditional Affairs in
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 Portfolio Committee in Mpumalanga 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.