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INTENDED/UNINTENDED CONSEQUENCES OF M.S.A. AMENDMENT

INTENDED/UNINTENDED CONSEQUENCES OF M.S.A. AMENDMENT. MUNICIPAL SYSTEMS ACT WAS AMENDED ON THE 18/5/2011. KEY FEATURES OF THESE AMENDMENTS ARE THE FOLLOWING: SECTION 57(1) – STATING THE FOLLOWING:

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INTENDED/UNINTENDED CONSEQUENCES OF M.S.A. AMENDMENT

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  1. INTENDED/UNINTENDED CONSEQUENCES OF M.S.A. AMENDMENT • MUNICIPAL SYSTEMS ACT WAS AMENDED ON THE 18/5/2011. • KEY FEATURES OF THESE AMENDMENTS ARE THE FOLLOWING: • SECTION 57(1) – STATING THE FOLLOWING: A PERSON TO BE APPOINTED AS A MUNICIPAL MANAGER OF A MUNICIPALITY, AND A PERSON TO BE APPOINTED AS A MANAGER DIRECTLY ACCOUNTING TO THE MUNICIPAL MANAGER, MAY BE APPOINTED TO THE POSITION ONLY =

  2. IN TERMS OF A WRITTEN CONTRACT WITH THE MUNICIPALITY COMPLYING WITH THE PROVISIONS OF THIS SECTION: AND • SUBJECT TO A SEPARATE PERFORMANCE AGREEMENT CONCLUDED ANNUALLY AS PROVIDED IN SUBSECTION (2)(a) (c) SUBSECTION 2(a)(1) BE CONCLUDED WITHIN 60 DAYS AFTER THE PERSON HAS BEEN APPOINTED AS A MUNICIPAL MANAGER OR THE MANAGER DIRECTLY ACCOUNTING TO THE MUNICIPAL MANAGER, FAILING WHICH THE APPOINTMENT LAPSES: PROVIDED THAT ON GOOD CAUSE SHOWN BY THE PERSON TO THE SATISFACTION OF THE MUNICIPALITY, THE APPOINTMENT SHALL NOT LAPSE.

  3. (b) TO BE CONCLUDED ANNUALLY, THEREAFTER WITHIN ONE MONTH AFTER THE BEGINNING OF EACH FINANCIAL YEAR OF THE MUNICIPALITY. SECTION 57 (6) STATES THAT, THE EMPLOYMENT CONTRACT FOR THE MUNICIPAL MANAGER MUST: (a) FOR A FIXED TERM EMPLOYMENT UP TO A MAXIMUM OF FIVE YEARS, NOT EXCEEDING A PERIOD OF ONE YEAR AFTER THE ELECTION OF THE NEXT COUNCIL OF THE MUNICIPALITY.

  4. KEY ISSUES FROM AMENDMENTS • STATUS OF EXISTING MUNICIPAL MANAGERS EMPLOYMENT CONTRACTS THAT ON PROMULGATION OF AMENDMENTS EXCEEDING THE PRESCRIBED ONE YEAR PERIOD. • THE CIRCULAR FROM SALGA ADVISING MUNICIPALITIES IN LINE WITH THE AMENDMENTS, TO EITHER ENSURE THAT EMPLOYMENT CONTRACTS ARE EXTENDED BEFORE EXPIRY OR IF EXCEEDING THE ONE YEAR PERIOD WOULD BE NULL AND VOID.

  5. KEY ISSUES FROM AMENDMENTS • IF CONTRACTS WERE NOT EXTENDED, THE RECRUITMENT PROCESSES ACTIVATED TO FILL THE VACANT POST OF A MUNICIPAL MANAGER, THE INCUMBENT IN THE POSITION GIVEN EXTENSION OF THREE MONTHS, THE CONCLUSION OF PERFORMANCE AGREEMENT WOULD THEN BE A CHALLENGE. • ASSUMING THAT THE FIRST THREE MONTHS EXPIRES AND RECRUITMENT PROCESS IS INCOMPLETE, COUNCIL APPLIES TO M.E.C. FOR THREE MORE MPNTHS EXTENSION, STILL THE CONCLUSION OF THE PERFORMANCE AGREEMENT BECOMES A CHALLENGE.

  6. KEY ISSUES FROM AMENDMENTS • THE LAST SCENARIO ASSUME THAT AFTER SIX MONTHS EXTENSION, THE COUNCIL DECIDES TO APPOINT THE INCUMBENT WHO HAS BEEN ACTING FOR THE PAST SIX MONTHS WITHOUT SIGNED PERFORMANCE AGREEMENT, CAN HE THEN SIGN PERFORMANCE AGREEMENT FOR THE LAST SIX MONTHS OF THE FINANCIAL YEAR?

  7. KEY ISSUES FROM AMENDMENTS • THE AMENDED SYSTEMS ACT SECTION 57 (2) (a) (1) RAISES THE MATTER OF CONCLUSION OF PERFORMANCE AGREEMENT ANNUALLY AND THERE AFTER WITHIN ONE MONTH AFTER THE BEGINNING OF EACH FINANCIAL YEAR OF THE MUNICIPALITY. • THE QUESTION IS WITH SIX MONTHS ACTING STATUS OF A MUNICIPAL MANAGER COMBINED WITH LAST SIX MONTHS OF THE YEAR, CAN A MUNICIPAL MANAGER SIGN A PERFORMANCE AGREEMENT, REFER THIS TO FINANCIAL YEAR 2012/13.

  8. KEY ISSUES FROM AMENDMENTS • THE OTHER MATTER TO BE CONSIDERED IS THAT DURING THESE BREAKAWAY PERIODS, THE MUNICIPAL MANAGER IS EXPECTED TO PERFORM INTERMS OF THE ORGANISATIONAL SCORE CARD WITHOUT THE AGREEMENT. • WHAT IS STATUS OF THIS PERFORMANCE? • IN TERMS OF THE AMENDMENT, THE FAILURE TO CONCLUDE THE PERFORMANCE AGREEMENTS DURING THE BREAKAWAY PERIODS, AMOUNT TO NULLIFICATION OF THESE MUNICIPAL MANAGERS’EMPLOYMENT CONTRACTS?

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