Sustaining Service Delivery Amidst Economic Challenges

1. CIGFARO Theme: Sustaining service delivery amidst the challenging economic climate 10 October 2017 Presenter: Ngoako Malatji Capacity Building: National Treasury | ngoako.malatji@treasury.gov.za Maggie.Thinyane@treasury.gov.za

2. INDEX • Economic Climate • Sustainable Service Delivery • Challenges in Local Government • How to Address the Challenges • MFMIP Background • MFMIP • Minimum Competency Levels

3. Economic Climate • The South African economy, which grew by an estimated 0.5 % in 2016, is expected to grow by 1.3 % in 2017 and 2 % in 2018 as economic conditions strengthen. • The global economic growth outlook has improved, but is clouded by policy uncertainty as the world trading system comes under mounting pressure. • Government continues to work with business and labour to rebuild confidence, promote investment and improve prospects for more inclusive growth. • South Africa needs broad-based economic transformation that created jobs and business opportunities for black South Africans , reduces inequality and boosts income growth for all citizens.

4. Sustainable service delivery What is sustainable service delivery? • Good delivery of excellent services to the people, • Uninterrupted, seamless provision of quality services to the people, • Services that are forever improving, • Actual service and regulation: Service delivery by the state involves delivery of tangible services such water and electricity, • Services that eventually lead to people relying less on the state and being autonomous in terms of meeting their own basic needs.

5. Challenges in Local Government • Lack of oversight by councillors, • Poor planning by Management , • Intervention and interference by leadership, • Corruption and nepotism • Poor workmanship on project • Award of contracts to fly-by-Nights • Lack of patriotism (serving communities with pride) • Lack of skilled professionals in local government and staff turnover • Angry communities destroys available infrastructure.

6. How to address the challenges • Strengthening procurement processes in municipalities. • Managing budgeting and implementing MSCOA, • Providing leadership that is based on stewardship • Refrain from trying to provide justification for wrongdoing. • Take actions against wrong doing (consequence management) • Creation or strengthening of a culture of performance excellence amongst employees, • Leadership qualities that lead to service delivery,

7. …continued • The contribution of internal systems(policy, procedure, budget, IDP) to intergovernmental relations and infrastructure development, • The need for continuous monitoring to maintain and enhance the quality of service delivery. • The importance of human capital, good governance, environmental stability and economic growth for achieving realistic service delivery goals,

8. MFMIP Background • The National Treasury is probably one of the sector departments that has achieved the massification of this graduate internship programme within the local government sector. • This effort has not only managed to mitigate the high unemployment rate that currently stands at over 27 per cent (Stats SA ), but also contributed to the creation of employment opportunities and supported presidential Outcomes.

9. MFMIP • Flagship programme that provides the required municipal talent pipeline; • Funded from the DoRA FMG Framework and own municipalities MTREF budget; • Targeted at minimum of 5 unemployed graduates in Accounting, Economics, Finance, Internal Auditing and Risk Management, among others; • Based on a structured 24 – 36 month work rotation plan leading to absorption into current structures with the BTO; • Supported by a mandatory formal training under the minimum competency levels (MFMP); • May only be achieved if the programme is institutionalised within municipalities HR processes.

10. MFMIP continued… • Interns must not be used for daily routine responsibilities where permanent officials are needed; • Interns must be paid stipends and not salaries. Stipends capped at R100K if funded solely from the FMG and municipalities may pay more if provided for in the relevant MTREF budget; • Municipality may consider appointing interns permanently at the onset and allow them to migrate into identified positions of entry, e.g. Assistant Accountant position over 24 to 36 months; • BTO Organogrammes change to accommodate this requirement must be table to Municipal Council for approval; • This may assist in providing surety and continuity to trainees whilst building municipal capacity in a sustainable manner; • Proper mentorship, coaching and on-going assessment at the core of the success of this model;

11. MFMIP continued…

12. MFMIP 2017

13. Minimum competency levels

14. Conclusion • There could be no sustainable service delivery without good governance. • Ensuring political and financial stability • Advancing accountable, pro-poor service delivery models • Improve local investment. • Improving local revenue collection models. • Retain intern • Achieving the requirements of Minimum Competency Regulations (HEQ, Experience, Performance agreement and FM & SCM). • Programme director, it is also proper to encourage our Students to play their role in transforming the landscape of our country. This begins with embracing this support of workplace learning. It remains your responsibility to go beyond the call of duty to do your research own learning and taking initiative.

15. END • Thank you • Dankie