Report of the Select Committee on Co-operative Governance and
Traditional Affairs on Consideration of the Termination of Interventions in
1. Background
and Overview
1.1 The
Select Committee on Co-operative Governance and Traditional Affairs, having considered the directive of the National Council of
Provinces (NCOP) to consider and report on the notice of termination of
interventions in Xhariep District and
1.2 On 06 June 2008, the Office of the Chairperson of NCOP
referred the notice of termination of interventions in both municipalities to
the Select Committee on Co-operative Governance and Traditional Affairs for
consideration and reporting in terms of NCOP Rule 101.
1.3 Based on the NCOP referral, the Committee undertook oversight
visits to
1.4 Since the Free State Provincial Executive Council was
satisfied that the Councils of both municipalities were ready and able to
perform their executive functions and obligations, the
Committee held a briefing session on 20 April 2010 with the Free State Department
of Co-operative Governance and Traditional Affairs. The main purpose of the
briefing was to consider the progress made in respect of the termination of
interventions in both municipalities.
2. Presentation on Interventions Progress
in
2.1 On 20 April 2010, the Free State MEC for the Department of Local Government and Housing briefed the
Committee on the progress made in the
2.2 The
MEC further informed the Committee that on 5 August 2009 the Free State
Executive Council resolved per Cabinet Minute 7.12 to terminate the
interventions in both municipalities with effect from 30 June 2009. The gist of the progress report on
3.
3.1 The major financial viability and management progress reported to the Committee
included the following:
3.1.1 Development of revised budget for 2007/08 and adjustment
budget for 2008/09 and budget related policies as well as internal control manuals.
3.1.2 Provision of general
financial management and the conclusion of the compilation of Annual Financial Statements
by the end of September 2008.
3.1.3 The review of financial
information for populating the new financial system and addressing Auditor- General
audit queries.
3.1.4 The addressing of all
matters related to allegation of unauthorised, irregular, fruitless and
wasteful expenditure, possible fraud, corruption, nepotism and
maladministration.
3.1.5 A Municipal Manager was
also appointed, and an internal control manual that outline procedures for
processing payment was developed.
4.
4.1 The financial management
and local economic development highlights of the progress made in
4.1.1 Completion
of the reservoir and water network project at
4.1.2 The
4.1.3 A site for the new library in
4.1.4 Installation
of new water pump at
4.1.5 Funds have been solicitated and the service
provider appointed for compiling the Implementation Readiness Study for bulk
water supply in Mohokare.
4.1.6 Efficient construction of housing projects was
facilitated.
4.1.7
Facilitation of promulgation of
by-laws on keeping of animals and policy on selling of sites.
4.1.8 Reviewal of supply chain management policy
and the introduction of the system of weekly programmes, reports and weekly
senior management meetings.
4.1.9 Public participation and engagements was
periodically undertaken.
5. Committee Observations and Opinion
5.1 The Committee has observed that,
although progress has been reported, the newly appointed Municipal Managers
will serve to ensure continuity in both municipalities, in order to deal with
all municipal matters after the termination of the interventions.
5.2 The Committee is of the opinion that,
for the termination of intervention in both municipalities to be efficient and
effective, there has to be a committed political and administrative leadership
with sound administrative and management processes in place.
5.3 Furthermore, national
and provincial government should exercise the power given to them in terms of
Sections 154(1) and 155(7) of the Constitution, to regulate and support the
executive authority of municipalities to ensure that municipalities perform
their functions effectively.
6. Recommendation
6.1 The
Select Committee on Co-operative Governance and Traditional Affairs, having
considered the request for termination of interventions in
Report to be considered.