PRESENTATION TO THE PORTFOLIO COMMITTEE ON PROVINCIAL AND LOCAL GOVERNMENT BUDGET REVIEW

1. PRESENTATION TO THE PORTFOLIO COMMITTEE ON PROVINCIAL AND LOCAL GOVERNMENT BUDGET REVIEW PROGRAMME 4 BRANCH: SYSTEMS AND CAPACITY BUILDING Ms Shiva Makotoko Acting Deputy Director-General 13 March 2007

2. dplg 2 INTRODUCTION • Purpose of Programme and Core Functions • 2006/07 High Level Achievements • Budget Review • 2007/10 SCB Strategic Priorities

3. dplg 3 1. PURPOSE OF PROGRAMME AND CORE FUNCTIONS Provides support to Local Government to build institutional and administrative systems within the following areas: • Intergovernmental Fiscal Relations • Local Government Institutional Development and Administrative Systems • Local Government Anti-Corruption • Performance Management and Support • Municipal Leadership Development Programme • Local Government Equity and Development.

4. dplg 4 HIGH LEVEL ACHIEVEMENTS-ENE 2006/07 • Management and administration of LGES & MSIG • Property Rates Act implementation- Regulations gazzetted for implementation-1st set • Publish key administrative Regulations- Performance Management Regulations • Legislation on unified conditions- Contribution to the DPSA Single Public Service Project • Performance Management- A PM audit was undertaken and the Framework has been developed. The Financial Early Warning System is being piloted in 12 municipalities. Performance Excellence was awarded • LOGOLA- Municipal Leadership Development Programme will be launched and rolled out in March • Anti- Corruption – The LGAC strategy was developed, launched and targeted implementation in 33 PC municipalities • Equity and Development – Draft Gender policy currently being aligned to the LG 5 year plan, HIV Framework not finalised pending consultations.

5. HIGH LEVEL ACHIEVEMENTS

6. HIGH LEVEL ACHIEVEMENTS

7. PORTFOLIO COMMITTEE ON PROVINCIAL AND LOCAL GOVERNMENT BUDGET REVIEW the dplg

8. dplg 8 STRATEGIC PRIORITIES (2007/10)

9. (a) Finalise legislation and policy refinements to existing LG laws dplg 9 • Process LG Laws Amendments Bill through Parliament during 2007/08. • Municipal Property Rates Act Regulations - Gazette second set of regulations for public comment. • Develop and roll out a framework to entrench Batho Pele principles in local government.

10. dplg 10 (b) Regulate LG Administrative and HR Systems … • Improve the regulatory environment by issuing regulations on: • Dispute Resolutions and management of suspensions in LG • Remuneration Framework for Section 57 Employees in LG • Other HR Systems – 2008/10

11. dplg 11 (c)Implementation of municipal performance management system • Consolidate and Gazette Norms and Standards for each of the 5 KPAs on LG performance • Implement the Performance Management Strategy and pilot in selected PC municipalities • Host Performance Excellence Ceremony – VUNA Awards

12. dplg 12 (d)National Monitoring System on LG Performance fully Developed • Publish the Annual Performance Report on LG • Extend the Pilot Programme on the LG Financial Early Warning System. • Monitor the implementation of Municipal Performance Regulations; • Monitor the implementation of the LG Anti-Corruption Strategy

13. dplg 13 (e) Improved skills and effectiveness of local Government leadership • Fast-tracking and finalizing work on the Local Government skills audit • Strengthen local government leadership by implementing the Municipal Leadership Development Programme – increase the targeted number of municipalities • Targeted Development Programme for women in LG. • Continue to provide targeted financial management hands-on support-Project Consolidate Municipalities.

14. dplg 14 (f)Local Government Anti-Corruption Strategy roll-out Improve the capacity to account for public resources and support all programmes that are designed to improve governance and fight corruption: • Increase the number of PC municipalities implementing the LG Anti-Corruption Strategy. • Review Legislation to clearly define roles and responsibilities of different spheres of government and organs of state.

15. dplg 15 (g) Support National Treasury on work towards finalising the LG Fiscal Framework • Further refinement that should lead to finalisation and stabilisation of the local government fiscal system that should focus on • (a) Improving efficiencies based on the revenue raising capacity; and- Activation of the Development component; • (b) Bias Intergovernmental Transfers towards municipalities with low fiscal capacity and a inadequate revenue base. • Implement key local government finance legislation and strengthen financial management support and oversight at the national and provincial levels – MFMA, MSA, MPRA.

16. dplg 16 2007/08 STRATEGIC PRIORITIES • Build capacity in respect of performance management systems for municipalities • Implement mechanisms that regulates HR policies and practices within municipalities; • Mainstreaming equity and development within municipalities; • Support municipalities to improve their capacity to account for public resources; • Support and monitor the implementation of the Municipal Property Rates; • Develop framework to determine and improve the financial viability of municipalities • Develop mechanisms for municipalities with a good credit rating to borrow Continue to focus on Performance Management and improving institutional development and stabilizing administrative systems, including addressing Equity, anti-corruption and financial viability. Thank you!