Purpose of Presentation Background Progress made on the Regulations Stakeholders consulted

2. Purpose of Presentation Background Progress made on the Regulations Stakeholders consulted 2

3. To brief the Portfolio Committee on progress made on the draft Regulations emanating from the Local Government: Municipal Systems Amendment Act No. 7 of 2011 (“the MSAA”); and • To outline processes aimed at finalising the drafting and promulgation of the Regulations.

4. The MSAA was assented to by the President on 5 July 2011. • The MSAA enjoins the Minister to make Regulations for setting of uniform standards for all municipal staff and duties, remuneration, benefits and other terms and conditions of employment of municipal managers and managers directly accountable to municipal managers. • Due to the enormous work and extensive consultations involved, a two-pronged approach to the development of regulations under the MSAA has been adopted namely, the development of: • Regulations for senior managers during the 2012/13 financial year; and • Regulations applicable to all other staff members during the 2013/14 financial year 4. These Draft Regulations aim to fulfil government’s resolve to professionalise local public administration to ensure fair, efficient, effective and transparent municipal administration.

5. Both organised local government (SALGA) and organised labour (IMATU and SAMWU) had raised some issues for consideration. • Further consultations have been held with SALGA, as reported hereinafter. • Steps are afoot to consult the draft Regulations with organised labour soon. • The provision is still a DRAFT, and will be finalised together with comments from organised labour (IMATU and SAMWU).

6. ENGAGEMENTS WITH SALGA: • Consensus has been reached with regards to the concerns raised by SALGA. • Bargaining Council Arrangements have been addressed through relocation; • “Over-regulation” on competency requirements to be discussed with the National Treasury • Remuneration Framework to be addressed through further engagement with key stakeholders (NT, FFC, DPSA, SALGA, etc • On the interpretation of the deletion of section 57(7) in the Municipal Systems Act, a clause has been included in the draft Regulations which provides for municipal councils to have a regulated discretion to appoint senior managers on permanent or on a fixed-term contract basis. The provision reads as follows:

7. 7 . Staff establishment • A municipal manager must develop the staff establishment of a municipality having regard to the functions and powers assigned to a municipality in terms of Chapter 5 of the Municipal Structures Act, and based on – (a) a municipality’s strategic objectives; (b) a municipality’s core and support functions; and (c) information flow and processes. • A municipal council must provide in its draft staff establishment for the appointment of managers directly accountable to the municipal manager, either on a permanent or a fixed term basis. • A municipal council must consider the draft staff establishment based on its integrated development plan, and have due regard to- (a) the financial implications to the municipality making such an appointment; (b) any existing contractual obligations of the incumbent manager and the financial implications thereof on the budget of the municipality; (c) the need of the municipality to retain institutional memory and scarce skills, and to promote stability and continuity within the municipality; and (d) the sustainability of the municipality.

8. 7. Staff establishment (continued) • A municipality must, within 14 days of the consideration of the draft staff establishment, submit the municipal council report and the draft staff establishment to the MEC for local government. • (a) The MEC for local government must, within 14 days of receipt of the draft staff establishment, submit comments to the municipal council, which must be formally considered by the municipal council before the staff establishment is approved. (b) If the MEC does not provide the comments within 14 days of receipt of the draft staff establishment, it is deemed that the MEC for local government is in agreement with the draft staff establishment. 6. If the municipal council substantially amends the approved staff establishment, the process outlined in sub-regulations (1) to (5) must be followed, prior to such amendments.

9. The draft Regulations have been consulted with the following key stakeholders: • IGR Structures: • Local Government MinMEC, • SALGA, • National Treasury, • Financial and Fiscal Commission (FFC); and • Local Government Sector Education and Training Authority (LGSETA).

10. The draft Regulations have been consulted with the following key stakeholders: • Professional bodies: • Engineering Council of South Africa (ECSA); • Association of Municipal Electricity Undertaking (AMEU); • South African Institute of Accountants (SAICA); • South African Institute for Civil Engineers (SAICE); • Institute for Local Government Managers (iLGM); and • Institute for Municipal Financial Managers (IMFO). •  Chief State Law Adviser. • Presented to the Portfolio Committee on 24 May 2012.

11. END THANK YOU!