PRESENTATION TO THE PORTFOLIO ON COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS

1. Briefing by the Department of Cooperative Governance on: Regulations for Appointment of Municipal Managers and section 56 Managers 24 April 2012 PRESENTATION TO THE PORTFOLIO ON COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS

2. OVERVIEW OF PRESENTATION CONTENT OF PRESENTATION • Purpose of Presentation • Background • Overview of the Regulations • Purpose of the Regulations • Progress on the Regulations • Planned processes for finalisation of Regulations • End 2

3. 1. PURPOSE OF PRESENTATION INTRODUCTION The purpose of this presentation is to: • Provide an overview of the Regulations • Brief the Portfolio Committee about progress on the Regulations • Outline the processes to finalise drafting and promulgation of the Regulations. 3

4. 2. BACKGROUND BACKGROUND • The Ministry for Cooperative Governance and Traditional Affairs (CoGTA) conducted an assessment on the “State of Local Government in South Africa” in 2009. • This assessment, inter alia, revealed capacity constraints and weaknesses in governance and institutional performance ranging from– • the burgeoning outstanding debt; • weak financial controls and negative audit outcomes; • under-expenditure on capital budgets; • high incidence of irregular and inappropriate appointments; • low human resource and financial capacity; • poor skills development programmes; • high turnover and vacancy rates; • ineffective leadership and institutional management; and • lack of effective performance management systems 4

5. 2. BACKGROUND (Cont.) BACKGROUND 1. In response to these, CoGTA adopted LG Turnaround Strategy in 2009, designed to restore confidence in municipalities, of which the Municipal Systems Amendment Bill (“the Bill”) was one. 2. The Bill – • came as a response to the practical insights and lessons learned since the inception of the new system in 2000 • was intended to – • curb the many challenges highlighted above; • building a committed workforce with the necessary intellectual capacity, competencies and experience to help deepen democracy and accountability as well as improve service delivery to communities; and • outlined government’s resolve to professionalise local public administration to ensure fair, efficient, effective and transparent municipal administration. • was consulted with NEDLAC before passing through the rigorous Parliamentary processes • was approved by Parliament on 12 April 2011 and assented to by the President on 5 July 2011 (hereinafter referred to as the Municipal Systems Amendment Act, 2011) (“the Amendment Act”). 5

6. 3. OVERVIEW OF THE REGULATIONS The draft Regulations cover the following areas: • Chapter 1: Interpretation (definitions) • Chapter 2: Establishment of municipal senior management service • Chapter 3: Staff establishment (HR planning, staff establishment and filling of posts • Chapter 4: Recruitment, selection and appointments • Chapter 5: Conditions of employment and remuneration of senior managers (leave, retirement/medical fund membership) • Chapter 6: Bargaining council arrangements • Chapter 7: Termination of service (retirement, incapacity due to ill-health injury, resignation and operational requirement) • Chapter 8: Oversight reporting • Chapter 9: General (transitional arrangements, repeal and short title)

7. 4. THE PURPOSE OF THE REGULATIONS • The Amendment Act provides enabling powers for the Minister to- • regulate a wide range of human resource matters, including the regulation of appointments, duties, remuneration, benefits and other terms and conditions of employment of municipal managers and section 56 managers. • regulate the setting uniform standards for municipal staff systems and procedures and matters that must be dealt with in such systems and procedures.

8. 4. THE PURPOSE OF THE REGULATIONS (Cont.) 2. The regulations intend to realise the spirit and intent of the Principal Act in actioning the following: • creating a career local public administration governed by the values and principles of public administration as enshrined in Chapter 10 of the Constitution, including a high standard of professionalism. • creating an enabling environment for increased staff mobility within government by standardising human resource practices. • improving the capacity of municipalities to perform their functions and improve service delivery by ensuring that municipalities recruit and retain suitably qualified persons, especially managers with scarce skills. • ensuring predictability and maximise administrative and operational efficiency across municipalities. • establishing a coherent HR governance regime that ensures adequate checks and balances.

9. 5. PROGRESS TO DATE BACKGROUND • In order to give effect to the Amendment Act, CoGTA - • in collaboration with SALGA has undertaken a considerable amount of work towards the development of draft regulations; • has completed almost 70% of work on the regulations; and • is currently finalising work relating to the competence model as well as a remuneration framework for municipal managers and section 56 managers. 2.The draft regulations have been consulted with trade unions (IMATU and , SAMWU), Local Government MinMEC, LGSETA, SALGA (also as co-drafters), Financial and Fiscal Commission, National Treasury, Professional bodies (i.e. 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) and some municipalities for implementation on 1 July 2012. 9

10. 6. PROCESSES TO FINALISE THE REGULATIONS PLANNED PROCESSES FOR FINALISATION OF REGULATIONS Upon finalisation of the competence model and remuneration framework the Regulations will be – • published for public comment by endApril 2012; • formally consulted with SALGA, DPSA, National Treasury, FFC, MECs responsible for local government in the provinces during the window period for public comments (s120(1) of the Act); • submitted to Parliament 30 days before gazetting (s120(7) of the Act); • published in the Government Gazette on 1 July 2012 for implementation; and • thereafter rolled-out and municipalities supported on implementation to ensure consistent interpretation and application. 10

11. END THANK YOU!!