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ATC211112: Report of the Select Committee on Cooperative Governance and Traditional Affairs, Water, Sanitation and Human Settlement on the Local Government: Municipal Systems Amendment Bill [B2B- 2019], (National Assembly – Sec 76), dated 12 November 2021

NCOP Cooperative Governance & Traditional Affairs, Water and Sanitation and Human Settlements

 

Report of the Select Committee on Cooperative Governance and Traditional Affairs, Water, Sanitation and Human Settlement on the Local Government: Municipal Systems Amendment Bill [B2B- 2019], (National Assembly – Sec 76), dated 12 November 2021

 

The Select Committee on Co-operative Governance and Traditional Affairs, Water, Sanitation and Human Settlement, having deliberated on and considered the subject of the Local Government: Municipal Systems Amendment Bill [B2B – 2019] (National Assembly – sec 76), referred to the Committee on 4 December 2020 and classified by the JTM as a section 76 Bill, reports that it has agreed to the Bill with amendments and reports as follows:

 

  1. Background

To amend the Local Government: Municipal Systems Act, 2000, so as to  insert and amend certain definitions; to make further provision for the appointment of municipal managers and managers directly accountable to municipal managers; to provide for procedures and competency criteria for such appointments, and for the consequences of appointments made otherwise than in accordance with such procedures and criteria; to determine timeframes within which performance agreements of municipal managers and managers directly accountable to municipal managers must be concluded; to make further provision for the evaluation of the performance of municipal managers and managers directly accountable to municipal managers; to require employment contracts and performance agreements of municipal managers and managers directly accountable to municipal managers to be consistent with the Act and any regulations made by the Minister; to require all staff systems and procedures of a municipality to be consistent with uniform standards determined by the Minister by regulation; to bar municipal managers and managers directly accountable to municipal managers from holding political office in political parties; to regulate the employment of municipal employees who have been dismissed; to provide for the Minister to make regulations relating to the duties, remuneration, benefits and other terms and conditions of employment of municipal managers and managers directly accountable to municipal managers; to provide for the approval of staff establishments of municipalities by the respective municipal councils; to prohibit the employment of a person in a municipality if the post to which he or she is appointed is not provided for in the staff establishment of that municipality; to enable the Minister to prescribe frameworks to regulate human resource management systems for local government and mandates for organised local government; to extend the Minister’s powers to make regulations relating to municipal staff matters; to make a consequential amendment to the Local Government: Municipal Structures Act, 1998, by deleting the provision dealing with the appointment of municipal managers; and to provide for matters connected therewith

 

2.   Public participation process on the Local Government: Municipal Systems

     Amendment Bill [B 2B – 2019] (National Assembly – sec 76)

 

  1. the Bill was presented to the Select Committee on Cooperative Governance and Traditional Affairs, Water, Sanitation and Human Settlement where after it was referred to the Provincial Legislatures for public hearings.

 

  1. The Select Committee requested the Department to continue to support the Permanent Delegates to consult the Bill in all provinces. The Department actively supported the Provincial Legislatures during the window period for public participation process.

 

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3.         Negotiating Mandates on the Objects of the Bill

 

3.1        The Select Committee received nine negotiating mandates in favour of the Bill with proposed amendments. The Select Committee, on 24 August 2021 held the Negotiating Mandate meeting with permanent delegates presenting their province’s position on the Bill.

 

3.2        The Select Committee received a briefing from the Department of Co-operative Governance and Traditional Affairs on its responses to the Negotiating Mandates. The Department responded to the proposed amendments by the provincial legislatures. The Department submitted amendments to the Bill.

 

4.         Consideration and Adoption of the C-List of amendments

 

4.1        The Select Committee met on 31 August 2021 and adopted the proposed C-List of Amendments. The proposed C-List, along with the relevant documentation were forwarded to the Provincial Legislatures for their conferral of a Final Mandate.

 

5.         Tabling of Final Mandates

 

5.1        The Select Committee received Final Mandates in support of the Bill. The Select Committee met on 12 November 2021 to consider the Final Mandates.

 

6.         Consideration of the Local Government: Municipal Systems Amendment Bill [B 2D-2019]

6.1         The Select Committee considered the amended clauses with the Department explaining the reason for each amendment. The Chairperson put the Bill for consideration: The Bill was supported by the Eastern Cape, Kwazulu-Natal, Free State, Gauteng, Limpopo, Mpumalanga, Northern Cape, North West provinces and, the Western Cape. There were no objections raised.

 

7.         Recommendation

 

7.1         The Select Committee on Cooperative Governance and Traditional Affairs, Water, Sanitation and Human Settlement, having considered the Local Government: Municipal Systems Amendment Bill [B 2D – 2019] (National Assembly – sec 76), referred to it on 4 December 2020 and classified by the JTM as a section 76 Bill, submits an amended Bill, namely the Local Government: Municipal Systems Amendment Bill [B 2D – 2019] (National Assembly – sec 76) for the Council’s consideration.  

 

Report to be considered.                                                                               

 Annexure A

 

PROPOSED AMENDMENTS BY SELECT COMMITTEE ON COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS, WATER AND SANITATION AND HUMAN SETTLEMENTS

_______________

LOCAL GOVERNMENT:  MUNICIPAL SYSTEMS AMENDMENT BILL

[B2B—2019]

_______________

 

CLAUSE 1

 

  1. On page 3, in line 19, to insert (c) “secondment’ means an employee who perform duties in terms of an agreement between their employer and the relevant official in organ of state receiving the employee:”

 

CLAUSE 2

 

  1. On page 4, in line 20, after “subsection” to delete “(7)(b)” and to substitute with “(8)”.

 

  1. On page 4, in line 21, to delete “senior manager” and to substitute with “municipal manager or acting municipal manager”.   

 

  1. On page 4, in line 22, to delete “municipality” and to substitute with “municipal council”.

 

  1. On page 4, in line 23, after “prescribed.” to delete the inverted comas and full stop.

 

CLAUSE 3

 

  1. On page 4, in line 52, after “(1)(a)” to insert “(i) or”.

 

  1. On page 5, in line 19, to omit “(4A)”, and to substitute with “(5)”.

 

  1. On page 5, in line 15, to omit “(5)”, and to substitute with “(6)”.

 

  1. On page 5, in line 21, to omit “(6)”, and to substitute with “(7)”.

 

  1. On page 5, in line 24, to omit “(7)”, and to substitute with “(8)”.

 

  1. On page 5, in line 27, to omit “(8)”, and to substitute with “(9)”.

 

  1. On page 5, in line 31, to omit “(9)”, and to substitute with “(10)”.

 

CLAUSE 4

 

  1. On page 5, from line 35, to delete clause 4 entirely.

 

CLAUSE 5

 

  1. On page 5, in line 41, to omit (1).

 

  1. On page 5, in line 44 to 46, to omit “after a person has been appointed as the municipal manager or as a manager directly accountable to the municipal manager” and to substitute with “after commencement of service”.

 

  1. On page 5, in line 48, to omit “municipality” and to substitute with “municipal council”.

 

  1. On page 6, in line 26 to 27, to delete “be signed within one month of his or her date of appointment and must”
  2. On page 6, in line 28, to insert “non-renewable” before “fixed term”.

 

  1. On page 6, in line 40 to 43, to substitute the subsection with “The contract of employment of a manager directly accountable to the municipal manager must be on a permanent basis.”

 

  1. On page 6, from line 44 to 47, to delete the subsection.

 

CLAUSE 6

 

1.       On page 7, in line 11, after “misconduct”, before the full stop, to insert “and who resigned prior to finalisation of the disciplinary proceedings”.

 

CLAUSE 10

 

  1. On page 8, in line 23, to omit the heading “Staff members prohibited from holding political office” and to substitute with “Limitation of political rights”.

CLAUSE 12

  1. On page 9, in line 19, after “amended” to delete “by the substitution for subsection (5) of the following subsection”.

 

  1. On page 9, in line 20, to insert “(a) by the insertion of the following subsection:”.

 

  1. On page 9, after the colon, to insert the following subsection:  

“(1A) The MEC must table a report detailing the outcome of the investigation in the relevant provincial legislature within 90 days from the date on which the MEC designated a person or persons to investigate the matter and must simultaneously send a copy of such report to the Minister, the Minister of Finance and the National Council of Provinces”.

 

  1. On page 9, in line 21, before subsection (5), to insert “(b) by the substitution for subsection (5) of the following subsection:”. 

 

  1. On page 9, in line 25, to omit the full stop and substitute with “; and”.

 

  1. On page 9, after line 25, to insert “(c) by the insertion of the following subsection:”

 

“(6) If an investigation warrants such a step, the municipality must institute disciplinary proceedings against the person or persons implicated in the report in accordance with the systems and procedures referred to in section 67, read with Schedule 2, and report the outcome to the MEC or the Minister, as the case may be, within 14 days of finalisation.”

 

CLAUSE 13

 

  1. On page 9, from line 28 to 30, to omit the paragraph and to substitute with:

 

“13. Section 120 of the principal Act is hereby amended by the substitution in subsection (1) for paragraph (a) of the following paragraph:

‘‘(a) the matters listed in sections 22, 37, 49, 57(3)(a)(ii), 54A(2), 54A(3)(a), 54A(4)(b), 54A(6), 54A(7)(a), 56(1)(b), 56(4A)(a), 57A(1), 57A(6), 57A(9)(b), 67(1), 71(1)(c), 72, 86A and 104;’’.”

 

CLAUSE 16

  1. On page 9, in line 43, to omit “Repeal of Act 7 of 2011” and to substitute with “Repeal of laws”.

 

  1. On page 9, in line 44, after “16.” to omit “Act No. 7 of 2011 is hereby repealed” and to substitute with:

 

“The following laws are hereby repealed:

(a)    Act No. 7 of 2011; and

(b)    section 82 of the Local Government:  Municipal Structures Act, 1998 (Act No. 117 of 1998).”

 

 

 

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