REPORT OF THE SELECT COMMITTEE ON
CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS ON OVERSIGHT VISIT TO
1. Background
and Overview
1.1 The
Select Committee on Co-operative Governance and Traditional Affairs having considered the request made by the National Council of
Provinces (NCOP) on the 10 March 2010, to consider and report on the intervention
notice invoked in terms of section 139 (1)(b) of the Constitution at Tswaing
Local Municipality by the North-West
Provincial Executive Council (PEC), reports as follows:
1.2 In terms of
section 139(1)(b) of the Constitution, 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 the responsibility
for the relevant obligation in that municipality.
1.3 In terms of the NCOP Rule 101, the Office of the Chairperson
of the NCOP referred the notice of intervention in the affairs of
2. Oversight Purpose and Objectives
2.1 The
objectives of the oversight visit was to determine whether procedural
requirements have been met and to
verify whether the PEC has used its discretion appropriately, before the
Committee can approve/disapprove the intervention. Through the deliberation and interaction with internal and external
stakeholders, the Committee wanted to determine how the PEC was intending to
restore the fulfilment of the relevant obligations and ensure fulfilment in the
long-term. The aim was 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 delegation of the Committee was composed
of the following Members of Parliament and Officials: Hon MH Mokgobi, Limpopo
(ANC); Hon AG Matila, Gauteng (ANC); Hon DV Bloem, Free State (COPE); Mr TM
Manele, Committee Secretary (Committee Section) and Mr V Mfuniselwa,
Administration Assistant (Committee Section).
4. Introduction
4.1 On 18 March
2010, the Premier of North-West Province tabled a notice of intervention in
5. Problems Identified by the PEC at the
Municipality
5.1 The main issues identified by the PEC for intervening in the
affairs of Tswaing Local Municipality related to the poor management of the
Municipality; poor water and sanitation provision; poor standard of internal
road infrastructure; uneven provision of services to the communities and
project delays owing to prolonged procurement processes; and possible fraud and corruption activities.
6. Oversight
Visit to
6.1 On 11 May 2010 the delegation of the
Committee had interactive and robust engagements with the internal and external
stakeholders 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 the 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 Mayor and the Speaker specified that the Municipal Council supported the
placing of the Municipality under section 139 (1)(b) of the Constitution, and
the subsequent appointment of the Administrator in fulfilling the executive
functions of the Municipality. The major progress reported by the Mayor prior to
the intervention and appointment of the Administrator included the development
of a draft Integrated Development Plan (IDP), budget and municipal turn- around
strategy to be considered and adopted by the Municipal Council.
6.4 SALGA: The major municipal
transformation and organisational development concerns raised by SALGA
affecting municipalities generally and specifically the Tswaing Local Municipality,
related to the lack of capacity in the North-West
Province to monitor and support municipalities in terms of personnel, funding,
institutional knowledge and expertise.
6.5 Administrator: The Administrator reported
on the absence of discipline among municipal officials; performance management system; lack of
staff supervision; bloated organisational structure, which was not aligned to the
IDP; irregular appointments of employees; problems with staff placements; 120
employees appointed within a period of six months, resulting in a higher salary
bill; poor record- management system; a high level of employee absenteeism and
lack of commitment from section 57 managers.
6.6 Municipal
Councillors: The concerns raised by some Municipal Councillors related to
low work ethics of the senior managers, including the Municipal Manager;
continual absence of the Municipal Manager from work; head-hunting of
unqualified senior managers by the Municipal Manager; and the non- functionality
of the Local Labour Forum (LLF).
6.7 Organized Labour: Some of the major
transformational and organisational concerns highlighted by the representatives
of South African Municipal Workers Union (SAMWU) related to the lack of skills
development programmes. SAMWU indicated that there is a need to address good
working relations among the Office of the Mayor, Speaker and the Chief Whip, in
order to ensure that effective and efficient municipal transformation and
organisational development.
6.8 Administrator:
Part of the turn-around plan reported by the Administrator in assisting the
Municipality to deal with the challenges included the reviewing of all the
existing policies, development of new policies, reviving and training of the LLF,
development of a disciplinary and grievance procedure, training of management
and staff, and improving staff morale and discipline by the end of September
2010.
(B). Basic
Service Delivery
6.9 Administrator:
The collapse of refuse collection, cleaning and rehabilitation of streets, and provision
of potable water and sanitation were the main basic service delivery problems
reported. The Administrator indicated that the turn-around plan would assist
the Municipality to effectively and efficiently deal with basic service
delivery challenges, including improving access to electricity and potable
water, maintenance and operation of infrastructure, ensuring solid waste
disposal and refuse removal, and resolving housing project challenges before
the end of September 2010.
6.10 Ward
Committees: Concerns raised by members of the Ward Committees were connected
to the Municipal Manager’s failure to deal with the service delivery problems,
political interference in administration, and the non-implementation of the IDP
review.
6.11 Traditional
Leaders: The challenges that needed to be addressed according to the Traditional
Leaders related to poor road infrastructure, lack of street lightning, delays
with regard to the completion of the RDP houses, land occupation, and the need
to ensure that the terms of reference of the Administrator and the application
of section 139 (1)(b) of the Constitution were clearly explained.
(C). Local
Economic Development (LED)
6.12 Administrator: The Administrator tabled a plan to assist
the Municipality in dealing with economic development challenges. This included
the revival of the LED Forum and the promotion of stakeholder engagement by the
end of September 2010.
6.13 Community-Based Organisation: The
Organization raised funding challenges which relate to youth developmental
programmes; community-based youth projects, including co-ordination of
leanership programmes; lack of an intergovernmental approach, especially with
regard to the placement of community members who had participated in the learnership
programmes.
(D). Municipal
Financial Viability and Management
6.14 Administrator: The major problems
reported by the Administrator included the salary bill of the Municipality
which exceeded the monthly income, general financial fraud and mismanagement,
non-payment of statutory deductions, poor management of municipal assets, the disappearance
of R90 000 without trace from the municipal primary bank account, and the
instituting of disciplinary measures.
6.15 The turn-around
plan was aimed at assisting the Municipality to deal with the problems related
to financial viability and management, development of a fraud prevention
strategy, robust engagement with the Ratepayers Association, improvement of
cash-flow management, promotion of compliance with the Municipal Finance Management
Act (MFMA) and the financial regulations, updating of asset register, and the completion
and adoption of the budget by the end of September 2010.
(E). Good
Governance and Public Participation
6.16 SALGA: The representative of SALGA, who
was also a Member of the Intergovernmental Relations Forum, registered his
dissatisfaction which related to the absence of sound relations within the Municipality.
It was pointed out that political infighting and divisions were rife within the
Municipal Council, and that there was also political–administrative conflict, as
well as failure to perform legislative functions. There was also political interference in the administration.
6.17 Municipal Council: The Speaker of the Municipality raised
concerns with regard to the lack of resources and stipends for Ward Committee Members
to facilitate public participation, on matters relating to governance.
6.18 Municipal Councillors: It was recorded
that political interference in administration; implementation of decisions by
the Mayor, without consultation with the Municipal Council, was a major
challenge in the Municipality. Furthermore, it was identified that there was political
infighting, non-tabling of reports, and the lack of accountability to the Municipal
Council by the Municipal Manager and Section 57 Managers. In addition, the Municipal
Manager failed to co-ordinate the meetings of the municipal portfolio
committees.
6.19 Administrator: The Administrator aims to
assist the Municipality to deal with the problems related to good governance
and public participation, including the revitalization of Ward Committees; the
improvement of communication with the community; the promoting of public
meetings; the reviewing of delegation of authority; the strengthening of political
oversight on all Municipal Council committees and administration; the creating of
stability within the Municipal Council; and the promoting of good intergovernmental
relations by the end of September 2010.
7. Committee Observations
and Opinion
7.1 The delegation of the Committee has
observed that, owing to the failure of the Municipality to perform legislative
and executive obligations, service delivery in the communities had been affected,
and this resulted in poor provision of water and sanitation services, poor
standard of internal road infrastructure, uneven provision of services to
communities; delays in the completion of LED projects, prolonged procurement
processes, and allegations of fraud and corruption.
7.2 Furthermore, the decision of the PEC to invoke
section 139 (1)(b) of the Constitution and the subsequent appointment of the
Administrator on 10 May 2010, has resulted in the development of a turn-around
plan. This was aimed at assisting the Municipality to deal with the challenges
and stakeholders’ concerns related to the IDP, budget formulation, organisational
development, financial management, good governance, public participation, LED
and service delivery.
7.3 In addition, the NCOP should note that
8. Acknowledgement
8.1 Having conducted the oversight visit to
the Municipality, the Committee delegation wishes to extend words of appreciation to all the internal and external
stakeholders of the Municipality for their robust engagements with the delegation
of the Committee on matters related to the placement of the Municipality under
section 139 (1)(b) of the Constitution and the appointment of the
Administrator.
9. Recommendations
9.1 Having conducted the oversight visit to
9.1.1 The NCOP approves the intervention as
issued by the North-West Provincial Executive Council in terms of section 139
(1)(b) of the Constitution.
9.1.2
The Administrator should fast-track
the process of reviewing and developing a database of qualifications of all
section 57 managers and table a report to the Provincial Executive Council.
9.1.3
The Minister for Co-operative Governance and Traditional Affairs should
approach the Hawks to pursue criminal investigation in all cases of financial
irregularities and fraud in
9.1.4 The Administrator should ensure the proper
functioning of the Local Labour Forum and the co-ordination of consultative
meetings between the offices of the Mayor, Speaker and the Chief Whip.
9.1.5 The Provincial Executive should provide
quarterly reports to the NCOP on the progress made in respect of service
delivery, financial viability and management, transformation and organisational
development, LED, and good governance and public participation as contained in the
turn-around strategy tabled during the oversight visit on 11 May 2010.
9.1.6 The Administrator should fast-track the
process of ensuring that all section 57 managers complete the signing of their performance
contracts, and further ensure that those contracts are aligned with the key
performance areas of the Municipality.
9.1.7 The MEC
for Developmental Local Government and Housing in
9.1.8 The South African Local Government
Association, in co-operation with the Local Government Sector Education and
Training Authority, should facilitate training and capacity building for
Municipal Councillors and officials, in order to further deepen their
understanding of the legal framework and policies that govern the activities of
the Municipality.
9.1.9
The South African Municipal Workers Union and the Independent Municipal
Allied Trade Union should work co-operatively with the Administrator in order
to strengthen personnel discipline that is aimed at promoting municipal
integrity.
9.1.10
The Provincial Executive should investigate and report to the NCOP, why
9.1.11
The Select Committee on Co-operative Governance and Traditional Affairs,
in co-operation with the relevant Portfolio Committee in the North-West
Provincial Legislature, would conduct a follow-up visit to the Municipality
three months after the intervention has ended, in order to monitor the progress
made in respect of the intervention in the Municipality.
Report to be considered.