Presentation to the Select Committee on Appropriations

1. Presentation to the Select Committee on Appropriations 15 July 2014 1

2. Presentation Outline • Legislative Context • SALGA mandate • SALGA Strategy 2011-2016 • Flagship projects 2014/15 • Outcomes of NCOP LG Week relevant to the Committee • Previous engagements • Appropriation matters to be brought to the attention of the Committee

3. Legislative Context • Sect 163 of the Constitution provides for: • Recognition of national and provincial organisations representing municipalities • Determine procedures whereby local government may- • Consult national and provincial government • Designate representatives to the NCOP • Participate in processes of the FFC • Organised Local Government Act, 1997 provides for the recognition of one national organisation representing the majority of the provincial organisations which in turn represent the majority of municipalities in the province in question • All the different categories of municipalities in the province are represented in the organisation. • The national organisation must designate not more than 10 persons to participate in the proceedings of the National Council of Provinces

4. Legislative Context (Cont.) • SALGA was established in 1996 and was recognised by the Minister as the body representing local government as from January 1997 (Government Notice No R 175, 30 Regulation Gazette no 6087, 30 January 1998) • SALGA is not a statutory body, but has official status through this executive act of recognition. • Sect 3 of the Local Government: Municipal Systems Act, 2000, provides that for the purpose of effective co-operative government, organised local government must seek to: • Develop common approaches for local government • Enhance co-operation, assistance and sharing of resources amongst municipalities • Find solutions for problems relating to local government generally • Facilitate compliance with the principles of co-operative governance & IGR

5. SALGA MANDATE The Voice of Local Government Lobby, Advocate & Represent Knowledge & Information Sharing SALGA Mandate Support & Advice Employer Body Strategic Profiling Capacity Building Transform local government to enable it to fulfil its developmental mandate. Act as an employer body representing all municipal members and, by agreement, associate members. Lobby, advocate, protect and represent the interest of local government at relevant structures and platforms. Support and advise our members on a range of issues to assist effective execution of their mandate. Build the capacity of the municipality as an institution as well as leadership and technical capacity of both Councillors and Officials. Serve as the main hub of local government knowledge and intelligence and to facilitate peer learning within the sector Build the profile and image of local government within South Africa as well as outside the country. The Voice of Local Government

6. SALGA MANDATES Representation Employer Body Capacity Building Support and Advisory Role Profiling Role LG Knowledge Hub SALGA 5 YEAR STRATEGIC PLAN 2012-2017 INTER / NATIONAL CONTEXT 1. MDGs & Global Commitments 2. National Dev Plan & other national plans/policies 3. MTSF 4. LGTAS 5. Electoral Mandate (2011) … … Org Capacity Risk APP 3 APEX PRIORITIES: Review of legislative & policy framework impacting negatively on LG. Review of LG fiscal & financial management framework. Improved municipal capacity. • 7 STRATEGIC GOALS • Accessible, equitable, sustainable services • Safe and healthy environment and communities • Coherent local planning & economic development • Effective, responsive and accountable local governance for communities • Human capital development in LG • Financially and organizationally capacitated municipalities • Effective and efficient SALGA administration. SALGA National SALGA Provinces Differentiated Approach to Managing / Supporting Local Government

7. Flagship projects 2014/15 • Phased implementation of the SALGA Centre for Leadership and governance • Initiation of an executive coaching programme for municipal leaders • Initiation of a multi-disciplinary advisory and hands-on support for improved municipal audits • Lead the review of legislation that impedes on LG and OLG (OLGA, Municipal Structures Act, Municipal Systems Act, Data Management • Implementation of an Anti-Corruption programme based on resolutions of the SALGA Anti-Corruption Summit • Initiation of a small town regeneration programme to unlock rural economies and manage the urban-rural interface / interdependencies • Support municipalities in the implementation of EPWP and CWP thereby promoting job creation by municipalities (Convene a LG job creation summit)

8. Flagship projects 2014/15 (Cont.) 8. Lead Knowledge Management in Local Government focusing on (Research, Sharing of Local Government best practice, Knowledge Hub, Municipal Barometer, HR Information Management System, Municipal Managers’ Forum 9. Profiling of local government service delivery successes & rebranding of SALGA 10. Initiate a quality management programme for Local Government and SALGA

9. Outcomes of NCOP LG Week relevant to the Committee The following key issues emanated from Local Government Week that should be taken up by the Select Committee on Finance and the Select Committee on Appropriations – • Creation of a Bulk Infrastructure Fund to fill the vertical fiscal gap relating to capital expenditure and rehabilitation • Need for a new funding model for Cities, as Equitable Share formula does not represent the most appropriate mechanism to do so • Mechanism to assist municipalities with revenue expenditure must be developed in cases of under-spending (instead of funds being returned to National Treasury). This mechanism should continuously monitor municipal expenditure, and should identify and capacitate those municipalities who do not spend their revenue effectively. • Section 139 to 148 of the MFMA should be considered during municipal interventions, and a procedural manual should be developed in terms of the application of these sections so that there is uniformity across the provinces.

10. Previous engagements Past interactions with the Select Committee on Appropriations and the Select Committee on Finance, August 2011 – March 2014: • Annual engagements on the Division of Revenue and the Medium Term Budget Policy Statement • Local Government Audit Outcomes • New Local Government Equitable Share Formula • Committee oversight visits / interactions with our member municipalities - Free State municipalities, Sept 2011 - North-West municipalities, November 2011 - Northern Cape municipalities, January 2012 - Gauteng municipalities, August 2012 • Support to LG and interventions by SALGA

11. Appropriation matters to be brought to the attention of the Committee Unfunded Mandates • Housing Function • Health Care Services • Libraries & Museums • Ambulance Services • Roads Regulatory Framework • Regulations: Standard Chart of Accounts • Regulations: Appointment & Conditions of Employment of Senior Managers • Spatial Planning and Land Use Management Act • Municipal Boundary Determinations • Public Administration Management Bill

12. Appropriation matters to be brought to the attention of the Committee SALGA continues to participate in the review of the LG Fiscal framework such as: • Local government infrastructure Grant Review • Review of Metropolitan municipalities‘ own revenue sources • Cost of providing free basic services

13. Thank you