PRESENTATION TO THE SELECT COMMITTEE ON APPROPRIATIONS SUPPORT PROVIDED TO MUNICIPALITIES

1. PRESENTATION TO THE SELECT COMMITTEE ON APPROPRIATIONS SUPPORT PROVIDED TO MUNICIPALITIES 28 January 2014 Parliament, RSA, Cape Town

2. PURPOSE: To brief the Select Committee on Appropriations on support provided to municipalities through – • The Local Government Turn Around Strategy (LGTAS) • Other interventions in support of the LGTAS and outcome 9

3. INTRODUCTION Since joining the Departments the Ministry has focused on: • An LGTAS report adopted by the G&A Cluster • Various engagements to ensure collaboration to address service delivery matters (such as sanitation through the extension of the inter-ministerial committee with DWA to DHS which has now allowed for NT to make necessary amendments to funding bulk infrastructure) • The resuscitation of the IGR structures The LGTAS and other support programmes, following, need further focus within the remaining six months

4. OUTLINE OF THE PRESENTATION 1. Local Government Turn Around Strategy (LGTAS) and Outcome 9 • Background • What has been achieved since 2009 • Challenges identified • Recommendations to improve the system of LG

5. OUTLINE OF THE PRESENTATION • Other interventions in support of the LGTAS and outcome 9 • National Capacity Building Strategy • Municipal Infrastructure Support Agent (MISA) Capacity Building c. Section 139 interventions d. National Disaster Management Centre support

6. 1. Local Government Turn Around Strategy (LGTAS)

7. a. Background: LGTAS • A national LGTAS Implementation team constituted of national, provincial, SALGA teams was established. • In December 2012, a process of assessing progress on the implementation of the LGTAS was initiated. Information was collected from municipalities and the provincial draft reports were developed. • This report is therefore, a culmination of a series of consultations embarked upon, through the Ministerial Local Governance forums (MECs, Mayors, Municipal Councillors and Traditional Leaders) held in all provinces to solicit inputs and validate information contained in the reports. Inputs received from the consultations resulted in the finalisation of the provincial specific reports (attached as Annexures). • The national composite report which details amongst others policy and legislative shifts, progress on the Key Performance Areas, challenges and proposals for the development of the Municipal Support and Intervention Plan (MSIP) 2014 – 2019 was developed. The MSIP will be aligned to the National Development Plan.

8. b. What has been achieved since 2009? (LGTAS) The State of Local government report, 2009, proposed a set of interventions that were meant to turn the situation of municipalities around. The high level analysis of the reports indicate pockets of progress in areas of policy shifts and legislative reviews as well as some aspects of the Key Performance Areas as follows: 3.1. Policy Shifts developments – Differentiation Framework that focuses on : • Planning: Customised IDP framework and Urban Development Framework; • Financing: Review of the Local Government Equitable Share (LGES) formula to recognise the different capacities and revenue raising context of smaller rural municipalities and to consider the impact of urbanisation on urban municipalities; and • Support: MISA establishment, sector departments and Business-Adopt-a-municipality). Community Works Programme to create work opportunities as well as assisting municipalities e.g. Clean Cities

9. What has been achieved since 2009? • Several pieces of legislation have also been reviewed and these are: • MSA Amendment Act, 2011, leading to the development of the LG Regulations on the Appointment and Conditions of Employment for Senior Manager; • The Municipal Property Rates Amendment Bill. • The Spatial Planning and Land Use Management (SPLUM) Act 16 of 2013 • Pending legislation includes the following: • The Draft Intergovernmental Monitoring, Support and Intervention Bill (IMSI); • Review of the Intergovernmental Relations Framework Act (2005); • Review of the Fire Brigade Services Act, 1987 and the development of a National Fire Services Framework; and • Amendment of the Disaster Management Act, 2002.

10. What has been achieved since 2009? Highlights on the Key Priority Areas (KPAs): KPA 1: Accelerating Access to Basic Services • Census 2011, data indicates a significant increase in the provision of basic services in all provinces. • Some of the support provided by national sector departments includes: • Dept of Energy providing more funding to reduce electricity backlogs in Gauteng, KZN and Eastern Cape and solar system connections to households. • Dept of Human Settlements accrediting metros for the provision/acceleration of formal dwellings. • Dept of Water Affairs with the building of dams for the provision of water e.g. De Hoop dam in Limpopo and capacitating municipalities on water security and harvesting. • Dept of Environmental Affairs in partnership with COGTA on the “Clean Cities and Towns” campaign.

11. What has been achieved since 2009? Highlights: KPA 2: Promoting good governance • There is a general improvement in the filling of the Top Six Senior managers positions with Manager Positions at 86% and CFOs at 78% 217/278). The lowest being Development planners at 48%. The average vacancy rate for all positions is 28%. Efforts are made to ensure compliance with the Minimum Competency requirements. • Significant progress is realised in the establishment, induction and development of Ward Level Operational plans through the support provided by COGTA and provinces. • Municipal IQ has recorded a total number of 624 Community protests occurring between 2004-2012. Some of the reasons cited by communities range from poor service delivery, inadequate interaction and feedback from political leaders on progress made, dissatisfaction on the deployment of politicians, alleged corruption and nepotism. This indicates that not all community protests are service delivery related.

12. What has been achieved since 2009? Highlights KPA 3: Enhancing sound financial management • Audit outcomes for the past 4 years indicates a slow uptake from 1 to 9 (3%) out of 278 municipalities receiving Clean Audit outcome for 2008/09 and 2011/12 financial year, respectively. A total of 61 (22%) municipalities have consistently received unqualified audit outcomes over the past 4 years (50% WC, 45% KZN and 41% Gauteng). • There is a significant reduction in the number of municipalities receiving disclaimers from 113 to 76 between 2008/09 and 2011/12 financial years.

13. MIG support initiatives

14. DCoG Support Programmes in Local Economic Development

15. What has been achieved since 2009? Highlights: KPA 4: Fostering Sustainable Infrastructure Development and maintenance • Support to municipalities through MISA indicates that by end of March 2013 a total of 66 municipalities were supported for facilitating basic services infrastructure projects as well as in financial and administrative areas. • Community Works Programme (CWP) – by End of March 2013 the programme has managed to create a total of 186 363 work opportunities. Of these 58% are women and 54% are young people. KPA 5: Intensifying the fight against corruption • Anti-corruption measures and training has been provided to both councillors and officials in municipalities across all provinces. • Partnerships have been entered into between COGTA, the HAWKS and SIU to form a Multi-Agency Working Group to focus mainly on local government investigations.

16. c. Challenges identified Some of the challenges identified include the following: • Municipalities perceived the LGTAS as an unfunded mandate rather than a vehicle to assist them to preform better. As a result of this the MTASs were attached as annexures to the IDPs with no budgets; • Multiple reporting on the Service Delivery Budget and Implementation Plan (SDBIP), LGTAS, Outcome 9 and other sector specific reporting requirements. • Weak political and administrative oversight and monitoring and evaluating of the performance of municipalities; • Weak intergovernmental relations system resulting in uncoordinated support and to local government. • Lack of a central clearing house (single window of coordination) on the impact of sector legislation and policy development which leads to implementation challenges (inadequate resource allocation).

17. d. Recommendations to improve the system of LG • Improving the current system of development and implementation of policy and legislation for local government. For example the creation of a Regulatory Impact Assessment which will assess the impact of any devolution process assigned to local government by sector legislation. This mean that the Single Window of coordination and principles of co-operative governance should be revisited; • Strengthen the current support provided to local government by across the three spheres of government, SALGA and other key stakeholders; • Strengthen the capacity and capability of the three spheres of government for a more coordinated planning, especially for the implementation of the Spatial Planning and Land-Use Management Act, 2013; • Provinces have strongly recommended that the SDBIP be used to report annual targets are reported quarterly. This will reduce the quadruple reporting currently taking place;

18. Recommendations to improve the system of LG • A strong need to review, produce and embrace a county-wide municipal performance reporting framework. The framework should provide a holistic picture of both financial and non-financial performance that is focused towards moving to the attainment of the outcomes of a developmental local government. This should be based on the established models, without unnecessarily increasing the reporting burden on local government; • Reorganising the national, provincial departments responsible for local government to monitor, report and evaluate the performance of municipalities. This should lead to the development of an effective monitoring, reporting and evaluation system that will produce credible, quality and accurate reports that will be used to identify inefficiencies in municipalities; and • Provide support to municipalities to enforce and institutionalise compliance for the submission of section 46,47 and 48 of the annual municipal performance reports by municipalities, provinces (MEC to national Minister) and national Minister to Parliament.

19. 2. Support provided beyond the LGTAS

20. b. NCB Strategy for Local Government • The following areas of the NB Strategy for Local Government, based on baseline skills audit findings per province, in district and local municipalities, are currently being implemented across all provinces: • SUPPORT through provincially-based workshops and guidelines: • HR Practitioners • Implementing SALGA’s HRM and D Strategy using the Regulations as basis and developing and implementing Recruitment and Retention Strategies based on the toolkit developed and workshopped in 2012 / 2013 • IDP Practitioners • Assisting practitioners with long term planning using the IDP Framework while the Department of Social Development provides workshops on the use of population statistics in planning

21. NCB Strategy for Local Government • NATIONAL TRAINING PROGRAMMES for local government will be developed and implemented, after verification of relevant Competence Profiles that will be used as basis for: • Induction Programme • Management Programme • Legal Services Programme • Administrative Services Programme

22. c. MISA Capacity Building Division Functional Objectives • Develop sector wide Technical capacity building for local government. • Provide funding for the development of municipal Built environment Technical skills • Professionalize the local government officials in compliance with statutory provisions for Technical professions • Facilitate lasting partnerships on Technical capacity building with public and private sector entities

23. Core Focus Areas • Water • Sanitation • Electricity (Energy) • Engineering (Electrical, Civil) • Construction • Roads • Town Planning • Waste Management • Mentoring & Professionalization of Technical Officials

24. Consolidated Current & Planned Deployments 2013/2014 FY New deployments currently under way

25. d. SECTION 139 INTERVENTIONS: TYPES In terms of section 139 (1) of the Constitution the provincial executive has the power to intervene into the local government affairs when a municipality cannot or does not fulfil an executive obligation in terms of the Constitution or legislation. The provincial executive may intervene by taking appropriate steps to ensure fulfilment of the obligation by doing the following: • Section 139(1) provides for general intervention in instances where a municipality fails to fulfil an executive obligation (this is a provincial discretionary intervention); • Section 139(4) provides for instances where a municipality fails to approve a budget or any revenue raising mechanism as required by legislation (a mandatory obligation); and • Section 139(5) provides for intervention in instances where a municipality, due to its financial affairs, is unable to deliver services or meet its obligation (a mandatory obligation).

26. CURRENT S 139 INTERVENTIONS Currently there are 13 municipalities in 4 provinces under administration in terms of S139 (10) and of S136 (3) (MFMA).

27. NDMC support initiatives

28. Emergency Relief Summary • Municipal Disaster Grant ( MDG) Limpopo = R 87,661 million KwaZulu- Natal = R 34,124 million • Provincial Disaster Grant (PDG) North West = R 43,630 million

29. Post Disaster Reconstruction and Rehabilitation Summary 1. Municipal Disaster Recovery Grant Western Cape, Eastern Cape and Limpopo = R 118,340 million 2. Sector Grants 2010/2011 Disaster = R 1,124,600 billion 2011/12 &12/13 Disasters = R103,191 million

30. In Conclusion The DCoG and other key stakeholders are involved in many focused efforts in ensuring the improved coordination of support to local government and through an improved monitoring and evaluation system are making the necessary changes to processes that seem not to have the desired effect currently

31. THANK YOU.