National Council of Provinces - 11 May 2010
TUESDAY, 11 MAY 2010 __
PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES
______
The Council met at 10:31.
The Deputy Chairperson took the Chair and requested members to observe a moment of silence for prayers or meditation.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000
NOTICES OF MOTION
Mnr W F FABER: Voorsitter, by die volgende sitting van die Raad sal ek voorstel:
Dat die Raad —
1) kennis neem dat die De Beersgroep 40% van sy werkers te Finsch-
myn in die Noord-Kaap gaan afdank weens finansiële verliese en
die swak ekonomiese klimaat;
2) verder kennis neem dat ongeveer 350 werkers hierdeur beïnvloed
gaan word;
3) toegee dat, met die geweldige hoë werkloosheidsyfer in die Noord-
Kaap, dit rede tot kommer is; en
4) ’n beroep sal doen op Minister Shabangu, Minister van Mynwese,
om te bepaal of die 40% besnoeiing op werknemers geregverdig is
deur die redes verstrek deur De Beers.
Dankie. (Translation of Afrikaans notice of motion follows.)
[Mr W F FABER: Chairperson, at the next sitting of the Council, I shall move:
That the Council –
1) notes that the De Beers group is going to dismiss 40% of its workers at the Finsch mine in the Northern Cape due to financial losses in the poor economic climate;
2) further notes that approximately 350 workers will be affected by this, which, with the extremely high unemployment rate in the Northern Cape, is a reason for concern; and
3) appeals to Minister Shabangu, the Minister of Mineral Resources, to
establish whether the 40% cut in workers can be justified by the
reason furnished by De Beers.
Thank you.]
Mr T D HARRIS: Chair, I hereby give notice that, at the next sitting of the Council, I shall move:
That the Council –
1) acknowledges the comments made by political analyst Justice Malala
who said on national television this week, and I quote:
“Politicians can talk until the cows come home but if they do not
create an environment for jobs then they have failed.
It was therefore with approval that we heard this week that the
Western Cape is creating jobs despite the 1% rise in unemployment
nationally.
Figures from Stats SA show that unemployment in the DA-run province
has dropped by 1,2% between the last quarter of 2009 and the first
quarter of this year.
This means that jobs are on the increase in the Western Cape, while
across the other eight provinces the average unemployment rate is
26%.
The Western Cape did particularly well when one considers that in
the Eastern Cape 60 000 jobs have been lost, in Gauteng 81 000 more
people are unemployed and in Mpumalanga 34 000 have lost jobs.
What is the Western Cape doing that other provinces are failing to
do?
Perhaps the President should ask the premiers of these provinces to
visit the Western Cape and learn a few things from there.”
Ms M G BOROTO: Chair, I hereby move without notice that the Council notes that …
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon member, can you hold that thought? Can you hold on?
Ms M G BOROTO: All right.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Thank you. Hon Freddie, please proceed.
Mr F ADAMS: Chair, I hereby give notice that, at the next sitting of the Council, I shall move:
That the Council –
1) notes with utter dismay new reports of manipulated and erroneous
margins that determine property rates in the DA-led City of Cape
Town;
2) further notes that this rates fiasco will leave thousands of
homeowners paying exorbitant rates while thousands of others would
score, paying low rates and costing the city hundreds of millions
of rand; and
3) acknowledges that the rates fiasco is one of the many scandals of
poor governance by the DA and will cost the people of the Western
Cape millions of rand, after the inflated costs of the Cape Town
Stadium and the BRT system, which together have cost the province
billions of rand that could have been used to complete the toilets
they built without structures in Khayelitsha and ensure that
communities in the townships get better services such as roads,
refuse removal and water and sanitation.
Mnr H B GROENEWALD: Voorsitter, by die volgende sitting van die Huis sal ek voorstel:
Dat die Huis kennis neem dat die DA wil ernstig met President Zuma simpatiseer, wat dit na ’n jaar nie reggekry het om sy eie party se leierseienskapstoetse te slaag nie, maar verlam is deur sy eie populisme, swak morele leierskap en die aanstel van bondgenote in kern magsposisies sodat hulle en ook hyself ryk kan word en beskerming kan geniet.
Dankie. (Translation of Afrikaans notice of motion follows.)
[Mr H B GROENEWALD: Chairperson, I give notice that at the next sitting of the Council I shall move:
That the Council notes that the DA sympathises with President Zuma, who after one year has failed to pass his own party’s tests on leadership quality characteristics, but who has been paralysed by his own populism, poor moral leadership and the appointment of allies in core positions of power, so that they as well as he himself can be enriched and enjoy protection.
Thank you.]
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon Groenewald, was that a motion or a notice?
Mr H B GROENEWALD: Chair, it is a motion.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): What kind of a motion? Can you unpack it? Mr H B GROENEWALD: Chair, sorry, it is notice of a motion.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): It’s a notice? Thank you.
Mr M J R DE VILLIERS: Chair, I hereby give notice that on the next sitting day of the Council I shall move:
That the Council –
1) notes that the Transvaal Agricultural Union, TAU and the National
Water Forum, NWF, laid criminal charges against Ministers Buyelwa
Sonjica, Minister of Water and Environmental Affairs, Tina Joemat-
Pettersson, Minister of Agriculture, Forestry and Fisheries and
Susan Shabangu, Minister of Mineral Resources, for alleged failure
to protect South Africa’s rivers from pollution;
2) notes that these two organisations said that they wrote numerous
letters and requests to the three Ministers without any productive
responses to alleviate or address the problem;
3) further notes that if this is true, then it is unacceptable that
these three Ministers act in such a manner because they are the
public servants and have the powers to address the problem;
4) acknowledges that they are also responsible for the wast of
taxpayers’ money if the court case occurs against government; and
5) requests the three Ministers to set up a consultative meeting with
the two organisations to address the problems and to stop the legal
actions taken by them.
PASSING AWAY OF MRS SHEENA DUNCAN
(Draft Resolution)
Ms M G BOROTO: Chairperson, I move without notice:
That the Council -
1) notes with a great sense of loss the death of veteran human rights
activist and anti-apartheid campaigner, Mrs Sheena Duncan, who
sadly passed away on 4 May 2010 at the age of 78 years after a long
illness;
2) further notes that Sheena Duncan was a distinguished South African
and an unrelenting activist who fought for justice and the pursuit
of human rights for all in South Africa; and
3) takes this opportunity to pass its profound heartfelt condolences
to the Duncan family, especially her sister Her Excellency Sheila
Camerer, who is South Africa’s Ambassador to Bulgaria, as well as
relatives and friends, and hopes that they find solace in the
contribution which she has made in the struggle for a nonsexist,
just and democratic South Africa.
May her soul rest in peace!
Motion agreed to in accordance with section 65 of the Constitution. 2010 FIFA SOCCER WORLD CUP
(Draft Resolution)
Ms M W MAKGATE: Deputy Chairperson, I move without notice:
That the Council -
1) notes that today marks 30 days before the official kick off of
the 2010 Fifa Soccer World Cup;
2) expresses its audible sense of pride and humility that the people
of the world are visiting the shores of our beautiful land;
3) acknowledges that this important milestone will not, by any
means, deter those who continue to peddle a sense of global fear,
citing fears of crime, insecurity and an uncertain political
climate;
4) takes this opportunity to say to the world, we are ready to show
you that we are a nation filled with pride, hope, aspiration and
determination;
5) calls on South Africans to blow their vuvuzelas and fly our
national flag to rally behind our national team Bafana Bafana and
to display our great spirit of ubuntu and humility, as we host
our national guests; and
6) expresses its profound appreciation to our outstanding
compatriots who continue to spend sleepless nights and work
tirelessly to make sure that this remains the best ever soccer
World Cup.
Motion agreed to in accordance with section 65 of the Constitution.
SUPER 14 INTERNATIONAL RUGBY SERIES
(Draft Resolution)
Mr A WATSON: Deputy Chairperson, I move without notice:
That the Council - 1) notes the success of this season’s Super 14 International Rugby Series, now rapidly heading to an end and congratulates the teams at the head of the log;
2) furthermore congratulates the mighty Bulls team, in particular, for
being so far ahead of the other teams that they have already
secured a home semi-final;
3) furthermore, more importantly notes that they have chosen the
Orlando Stadium in Soweto for the first semi-final and trusts that
the outcome will be such that also the final will be played in
Soweto; and
4) acknowledges that this will not only be a welcome addition to the
forthcoming soccer world series, but will add immensely to the
image of our rainbow nation and the place of the game of rugby in
it.
Motion agreed to in accordance with section 65 of the Constitution.
WISHING MR L P M NZIMANDE A SPEEDY RECOVERY
(Draft Resolution)
Mr D D GAMEDE: Deputy Chairperson, I move without notice:
That the Council -
1) notes that the hon Mr L P M Nzimande, MP, has been hospitalised
since Friday; and
2) takes this opportunity to wish him a speedy recovery and good
health.
Motion agreed to in accordance with section 65 of the Constitution.
CONGRATULATING AMAZULU SOCCER TEAM AND SHARKS RUBGY TEAM ON THEIR FINE PERFORMANCES
(Draft Resolution)
Mr R A LEES: Deputy Chairperson, I move without notice:
That the Council -
1) notes the well-deserved 2-1 quarter-final win of the AmaZulu soccer
team over Pretoria University at the Harry Gwala stadium on
Saturday, 9 May 2010;
2) therefore congratulates AmaZulu on their fine performance and
wishes them well for the Nedbank Cup semi-finals;
3) further notes the excellent play of the Sharks rugby team on
Saturday, 9 May 2010, when they trounced the Stormers 20-14 at
Kings Park; and
4) congratulates John Smit and his team on an outstanding performance
despite having already been knocked out of the Super 14 tournament.
Motion agreed to in accordance with section 65 of the Constitution.
SITUATION ON N1 AND N14 HIGHWAYS IN PRETORIA AREA
(Draft Resolution)
Mr H B GROENEWALD: Deputy Chairperson, I move without notice:
That the Council -
1) notes with concern the ongoing situation on the N1 and N14 highways
in the Pretoria, Midrand area;
2) notes that criminals are throwing stones from bridges onto
bypassing cars on the highway, where innocent people have been
seriously injured and their lives taken; and
3) calls for an immediate investigation into this ongoing matter.
Motion agreed to in accordance with section 65 of the Constitution.
BEHAVIOUR OF COPE MEMBERS AT PROVINCIAL CONGRESS
(Draft Resolution)
Ms B P MABE: Deputy Chairperson, I move without notice:
That the Council –
1) notes the callous and blatant acts of public violence displayed by
disgruntled members of the flagging Congress of the People as they
threw chairs and exchanged blows after a lengthy disagreement over
the credentials during the party’s Gauteng provincial congress in
Vereeniging;
2) further notes that five people sustained various degrees of
injuries and senior party members were forced to flee through the
windows of the Assemblies of God hall, as party members engaged in
a rat-chasing exercise of the current party leader Mbhazima Shilowa
who was booed off the podium when he tried to address delegates;
and
3) acknowledges that these are some of the last kicks of the party, as
it battles rowdy and disgruntled political cowboys that left the
ANC for selfish political gain.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): The motion is agreed to … Just hold on. Hon Harris?
Mr T D HARRIS: Madam Deputy Chair, my hand was up.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon Harris …
Mr T D HARRIS: Madam Deputy Chair, my hand was up when you asked for an objection.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Yes. Hon Harris, what is it?
Mr T D HARRIS: Chair, you asked whether there were any objections, and I believe you did not see that my hand was up.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Well, I’ve just given you a chance to voice your objection.
Mr T D HARRIS: Thank you for that chance, Chair.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Order! In light of the objection, the motion may not be proceeded with. The motion without notice will now become a notice of motion.
FARMER JAILED FOR MURDER AND INDECENT ASSAULT
(Draft Resolution)
Ms B V MNCUBE: Madam Deputy Chair, I move without notice:
That the Council -
1) notes that a Leeu Gamka farmer, Piet Botes, was jailed for 35 years
on 7 May 2010 and ordered to undergo a programme for sexual
offenders while in prison for murdering his farmworker’s 13-year-
old daughter and indecently assaulting two teenage girls in 2006;
and
2) acknowledges that this case sends a clear and unequivocal message
to farmers who continue to treat women and girl-children as part of
their properties that those days are over and all South Africans,
regardless of their economic status, also have rights that are
protected by the Constitution of the Republic of South Africa.
Motion agreed to in accordance with section 65 of the Constitution. WOMAN RAPED AND MURDERED IN NORTH WEST PROVINCE
(Draft Resolution)
Ms M W MAKGATE: Madam Deputy Chair, I move without notice:
That the Council -
1) notes that on Saturday, 1 May 2010, Fiona Rollien Ephraims, aged
25, was raped and murdered and her body was found on Sunday morning
at Extension 1, Blydeville, Lichtenburg, North West province;
2) also notes that she was naked and had sustained head injuries;
3) further notes that she worked for the community and volunteered at
the Afrisam project at the stadium;
4) confirms that she is survived by her daughter, mother, three
sisters and three brothers;
5) calls upon the community to assist the South African Police with
information which could lead to the arrest of the perpetrators who
committed this heinous crime; and
6) takes this opportunity to extend its condolences to the family.
May her soul rest in peace!
Motion agreed to in accordance with section 65 of the Constitution.
BRETT GOLDIN BURSARY AWARD WINNERS
(Draft Resolution)
Mr M J R DE VILLIERS: Madam Deputy Chair, I hereby move without notice:
That the Council -
1) notes the wonderful achievement of two promising actors, Josette
Eales, 26, from Johannesburg and Thato Moraka, 25, originally from
Mafikeng, who were announced as winners of the Brett Goldin Bursary
award this year;
2) further notes that they will go to the home of the Royal
Shakespeare Company in Stratford-upon-Avon from June 18 to July 19
to get training and skills development in different acting skills
to better their acting; and
3) acknowledges that this is a useful and important achievement and
bursary for these two young actors and wishes them good luck and
success with their training and conveys its good wishes to them.
Motion agreed to in accordance with section 65 of the Constitution.
APPROPRIATION BILL
(Policy debate)
Vote No 2 – Parliament:
The CHAIRPERSON OF THE NCOP: Deputy Chairperson, hon delegates, representatives of nongovernmental organisations, NGOs, civil society in the gallery, and fellow South Africans, I want to thank you for coming today to listen to Budget Vote 2: Parliament being debated.
We have come … not as pretenders to greatness but as a particle of a people whom we know to be noble and heroic, enduring, multiplying, permanent, rejoicing in the expectation and knowledge that their humanity will be reaffirmed and enlarged by open and unfettered communion with the nations of the world.
These were the words of Nelson Mandela in his address to the Joint Session of the United States Congress, a few months after his release from jail. Twenty years later, our country is on the eve of hosting the biggest soccer spectacle in the world - the Fifa Soccer World Cup. Indeed, our humanity is being reaffirmed by the nations of the world.
As you know, ladies and gentlemen, the theme of Parliament this year is: Celebrate the legacy of Mandela – Contribute to nation-building. Mandela’s legacy is legendary. It is about the embodiment of our struggle for freedom. It is about constitutionalism. It is about nation-building. It is about great love for humanity.
Towards advancing the project of reaffirming our humanity, resources have been made available to support the work of Parliament. In the previous financial year, 2009-10, Parliament was initially allocated a budget of R1,35 billion. Three hundred and seventy-seven million of this was a direct charge against national revenue for members’ remuneration. Nine hundred and seventy-four million was appropriated through a Budget Vote to fund the five main programmes of Parliament.
In addition to the R1,35 billion, an additional allocation of R133,9 million was received for unavoidable costs. This resulted in a total allocation of about R1,5 billion. The unavoidable costs were, for example, as a result of expenses for information and communication technology, ICT, equipment for the fourth Parliament, which cost us R14,1 million; participation in various international forums, which cost us R31,1 million; and adjustments to members benefits, which cost us R13,2 million.
In this regard, funded programmes, which are provided for in the new budget, are the following. The first programme is Administration. The programme is intended to provide strategic leadership, institutional policy, administration and corporate services to support Members of Parliament. The initial allocation for the previous year was R247 million, and the new allocation is R317 million.
The second programme is Legislation and Oversight. This programme is intended to enable Parliament to pass legislation and oversee executive action. The initial allocation for the previous year was R187 million. The new allocation is R282 million.
The third programme is Public and International Participation. This programme allows Parliament to carry out public participation projects and participate in international relations activities. The initial allocation for the previous year was R67 million. The new allocation is R87 million.
The fourth programme is Members’ Facilities. This programme is intended to provide travel, information and communication services and other facilities for the Members of Parliament in both Houses of Parliament. The initial allocation for the previous year was R212 million. The new allocation is R211 million.
The fifth programme is Associated Services. This programme is intended to provide financial support to political parties represented in Parliament. It is divided into political party support, constituency support and party leadership support. Can the party secretariat and media take note of this? It’s very important. The initial allocation for the previous year was R258 million. The new allocation is R282 million.
When reflecting on the actual expenditure budget of the 2009-10 financial year, Parliament spent 94% of its total budget allocation. One of the contributing factors to the underspending emanates from the mismatch between the swearing-in of the members of the Fourth Parliament and the beginning of the 2009-10 financial year. As we all know, the 2009-10 financial year began on 1 April 2009, whereas members of the Fourth Parliament were only sworn in on 6 May 2009. Effectively, the Fourth Parliament began to operate in June 2009 after the induction of new members. What is important is what we want to do with the new budget I have just outlined.
Let us first look at the strategic framework. Both the National Assembly and the National Council of Provinces, NCOP, contributed to the development of the strategic framework for Parliament which was approved by the Parliamentary Oversight Authority in March this year. The framework, which contains our policy imperatives, proposes the following strategic objectives for this term. The first one is strengthening the oversight function and establishing a strong culture of overseeing executive action. In this regard, we would like to improve Parliament’s capacity to exercise its constitutional oversight role by developing protocols for assessing the performance of all organs of state and providing them with sufficient resources to effectively carry out their role. In order to ensure outcomes- based oversight, Parliament needs to ensure dedicated support for committees, development of members’ capacity, and improved institutional management.
Oversight that focuses on outcomes will assist in the process of reaffirming our humanity as the citizens of a democratic country. The implementation of the oversight and accountability model is key to improving our approach to add co-ordination of oversight work. Towards this, an implementation team comprising officials and jointly chaired by House Chairpersons of the two Houses responsible for oversight was established.
The recommendations of the model were reviewed and systematically divided into the following work areas: parliamentary planning, institutional mechanisms, human resource capacity, facilities, technology and systems, new mechanisms, public participation, and the Money Bills Amendment Procedure and Related Matters Bill, which is now, of course, an Act. We are in the process of considering these recommendations for implementation.
As this House, we have agreed on the priorities for oversight during the period of the Fourth Parliament. They are agriculture, economic development, health and social development, human settlements, police, rural development, and land reform. We need to pay attention to these areas at committee and institutional levels in our effort to contribute to the work of Parliament.
The second strategic plan that we are looking at is increasing public involvement and participation in building a responsive people’s Parliament. Our democracy is both representative and participatory. The Constitution provides for public involvement in the processes of Parliament. With regard to the NCOP’s contribution in this regard, I am happy to report that the implementation of the new approach to the Taking Parliament to the People programme is delivering the impact we have always wanted it to deliver. For example, in the case of Limpopo, some of the mining houses are already implementing the commitments they made towards social investment.
To further strengthen public participation, we are developing a public participation model for Parliament. The Joint Rules Committee has agreed that the Third Parliament’s Joint Task Team on the Legislative Process in Parliament be revived to link its work with the issues relating to public participation. The task team is expected to report to the Joint Rules Committee within six months after re-establishment.
The third point is strengthening co-operative government and fostering improved co-operation and relations. Many of the aspects of the Constitution relating to Parliament’s role in promoting co-operative government and intergovernmental relations require the development of processes and practice. Many areas have seen advancements, including the greater role of this House in interventions and in the area of intergovernmental fiscal relations.
However, we need to do more. We need to review the functioning of present arrangements as embodied in legislation. We appreciate the work done by this House in processing interventions. I think the committee is doing a great job in that line in terms of the number of interventions that we see coming to the NCOP. Our role is to ensure that these interventions are not arbitrary. With the increase in the number of notices with regard to interventions in municipalities, we appreciate that a lot of work still needs to be done to improve governance in the local government sphere.
We are in the process of reconfiguring the portfolios of our two House Chairpersons in the NCOP so as to provide for a new portfolio on intergovernmental relations and co-operative government. The intention is to improve our performance in this area.
On the issue of nation-building, Parliament aims to embark on a project to increase its contribution to nation-building through enhancing unity and democracy in South Africa. The envisaged “Project Democracy” is to be used as a platform for robust and active involvement of Members of Parliament, as well as extensive public engagement. We will elaborate on this bold initiative after we have properly conceptualised it.
Strategic plan number four is to improve and widen the role of Parliament in international co-operation and participation. In the period under review, we participated in various regional, continental and international forums to promote the African agenda and the role South Africa plays in this regard. It is important to note that Parliament finds itself in a fast- changing global domain.
Going forward, we need to pay particular attention to the increasing role of Parliament in international relations. But the immediate task is to transform the nature of support given to MPs from being mainly logistics to being content-oriented, especially when it comes to international participation. In order to elevate Parliament’s role in international relations, we must start by improving our support capacity in research and policy areas because those are the areas that I think are lacking in supporting the members. If we don’t provide the members with good research and assist them in terms of the policy that we are applying as our policy for international co-operation, then we are denying them the right of having the knowledge that they have to use when they interact with other political multilateral bodies. This is especially so in the context of the 2011 deadline to transform the Pan-African Parliament into a legislative body.
The last strategic plan is building an effective and efficient institution. In order to achieve all the above, it is important that we pay particular attention to the task of building an effective and efficient Parliament. Towards this, we need to continue to improve our human resource capacity, including a reorientation towards entrenching a culture of service delivery. As we roll out the new system and more modern technology, it is important for us to realise that a modern Parliament like ours will function better if we all improve our ICT skills. I know we still have a great shortage of those.
Can we all use our computers? [Interjections.] Surely? Am I the only one who can’t? [Interjections.] Oh, all right. I will check that very soon because I’ll be visiting your offices checking how many of us can communicate with their constituencies whilst in Cape Town doing their job. I will also be checking how many of you can communicate with the continent and the international world whilst you are here in Parliament doing your job. I will check that. I will visit anyone unannounced and ask him or her to teach me how it is done.
We are reviewing the support structure in the NCOP to respond to the need to follow up and assess our work. In line with the recommendations of the study we have conducted on Taking Parliament to the People, I have appointed a special adviser on intergovernmental matters in my office. Building an effective and efficient Parliament will require that we provide adequate space for members to do their work. Work is being done in this regard as part of the space utilisation project, and more information will be made available. The strategic plan for the Fourth Parliament, to be brought before this House as soon as possible, will give more detail with regard to these strategic objectives. Unfortunately, the document has been delayed because of political party processes.
In conclusion, in 1995, before the Rugby World Cup Nelson Mandela, who spoke of us as a particle of the people and the servants of the newly enfranchised, gave the captain of the Springboks a poem entitled Invictus with the following words:
I am the master of my fate: I am the captain of my soul.
The project of reaffirming our humanity is in our hands. Collectively, we are its masters and captains; nobody else but all of us as we are sitting here.
At this point, let me congratulate our parliamentary rugby team for their success during a visit to the United Kingdom and Ireland in November last year. They brought the trophy back to Parliament. I am doing this because I have realised that hon members today have shown their support to different sports clubs. I heard that Mr Lees supports AmaZulu. I also heard that Mr Watson supports the Bulls, and so on. So, we all have our favourites.
On behalf of the millions of South Africans whom you have the privilege to represent, I commend Budget Vote No 2: Parliament, totalling R1,571 billion, inclusive of the direct charge. I do so in the hope that you will continue to support the project of reaffirming our people. I do so in the hope that you will support the work of this Parliament in giving a voice to the voiceless and holding the government to account. I thank you and the officials for making it possible to elaborate on an important project for our nation.
I want to thank the Secretary to Parliament and the staff. I also want to thank our staff in the NCOP, the Secretary to the NCOP, and other staff members. I want to thank you also, hon members, for the active role that you are playing in your work, exactly one year after having started in this House. It is now time for implementation, not time to play. Thank you very much. [Applause.]
Mr A WATSON: Deputy Chairperson, Chairperson of the NCOP, hon fellow delegates, this will be the seventh opportunity for me to participate in a debate on the Budget Vote for Parliament. I must say that, especially in regard to the NCOP, much has been achieved over the years. In saying that, one cannot but acknowledge the tremendous role played by our Chairperson, hon M J Mahlangu, in building on the image of the institution whilst, at all times, considering the interests and the needs of the delegates.
During the past six years and seven Budget Vote debates, I have stood here drawing attention to many shortcomings in our operation, whilst offering suggestions to improve and acknowledging the positive. To me, possibly the worst nightmares emanated over the years from being steered and bulldozed by the administration and staff of the institution, rather than by the presidium and the members. Speaking on behalf of my party, the DA, I have always maintained that we are called Members of Parliament because Parliament is our institution and should, as such, be governed by us.
I am happy to acknowledge that that has now come to an end. Whilst planning and decision-making is now firmly in the hands of those elected to govern the NCOP, serious thought must be given to getting more input from the ordinary delegates to establish their views and needs, especially when it comes to major events and excursions like Taking Parliament to the People, workshops and conferences. Questions to the executive remain one of the most important tools in our oversight function. However, I am afraid it has steadily become a source of great frustration to the delegates. We are aware of the fact that the Chairperson is attending to the problem of written questions from the NCOP not being answered in good time, and we thank him for that. But this perceived disregard of the NCOP is also reflected in the attendance by Ministers at question sessions in the NCOP. Then I ask: Why is the National Assembly, NA, favoured by having questions posed to and answered by both the President and the Deputy President, whilst in the NCOP we only have the privilege of questions to the Deputy President? Is that not just another contributing factor to the attitude of some individuals of treating the NCOP as inferior?
The update of the Rules of the NCOP and their application in the House is also a matter that has been uppermost in our minds over many years. I am happy to report that we, as the subcommittee, have gone a long way in considering amendments. We look forward to the finalisation of the Rules by the Rules Committee at the meeting scheduled by the Chairperson to start on 4 June, so that we can have a fresh set of Rules to work with when we come back from the Fifa extravaganza.
Having up-to-date Rules is, however, by no means enough. We need to embark on a programme of empowering ourselves as delegates with regard to the how and when of those Rules, particularly to protect each other and ourselves. I am not propagating a stiff, militarised assembly where no one dares to be out of step at any time. On the contrary, legislatures all over the world have been known for spontaneous wit and humour, and that must be preserved at all costs.
However, when rising on serious points of order, points of clarity or requests to address the Chair, actions should be in accordance with the prescribed Rules. We must be serious and act accordingly. It also follows logically, and even more importantly, that decisions and rulings from the Chair should, likewise, be professional interpretations of the Rules and should add to the decorum of the House rather than break it down.
As in previous years, I have said nothing about the actual finances of Parliament because my party’s Chief Whip and Deputy Chief Whip will again attend to that when addressing the National Assembly later today. I will, therefore, remain focused on the NCOP as such, and end with my favourite topic, namely the place and stature of the NCOP in society.
The sad fact is that we are still, and remain, an unknown entity in the world out there, a poor replacement for the once illustrious Senate of the Republic of South Africa. Now, much has been said about the problem and many recommendations have been made. Chairperson, you would recall that we even devoted part of our 10-year celebrations to discussing this matter. I will never forget the professor of constitutional affairs who stood up and said that he has taught 600 students, and if he doesn’t know what the NCOP does, then how could we expect him to teach 600 students to know what we were doing.
But I have a solution. Let us make and implement one small change to the Constitution and rename this House the National Senate of Provinces. It won’t be long before we will simply be referred to as the Senate and we, the delegates, will be senators once again. Think about it. I thank you.
Mr S H PLAATJIE: Chairperson, because I only have about four minutes, I will try to be fast. Parliament is the grand institution of the nation. Our Parliament should be perceived as such by the people of the country. Perception in politics is everything. Ivor Chipkin says that our politics appeal to the wrong essentialism. They appeal to the essentialism of race and culture, instead of to the essentials of the Constitution.
As the principle of responsible government prevails in South Africa, the executive has to be fully accountable to the parliamentarians. Unfortunately, those who have most cause to raise the most issues are afforded the least time. Conversely, those who have the least questions are given too much time. Such an apportionment of time, as occurs in Parliament, fits very poorly with the principle of responsible government and contributes to the worst problem in government. Is Parliament really holding the government accountable? To answer this question, the Chairperson should produce a balance sheet. The facts must speak for themselves. This refers to answering of question by Ministers.
To us in Cope, it seems as though the parliamentarian majority only serves to democratically trump Parliament’s constitutional obligations. Therefore, where electorates give a political party maximum support, they get minimum results. This irony is not lost on the people. South Africans are more likely to trust our courts than Parliament because Parliament does not give clear judgments on issues and is perceived to be hedging on challenges.
I now come to the question of the media. The media coverage of politics is about political conduct because Parliament offers no real debate on policies or current issues. The debilitation of Parliament is as a result of what we have made our Parliament to be.
In conclusion, if the role of Parliament in the public’s mind is minimised and it can no longer serve as the grand institution, the people, to whom Parliament belongs, will increasingly reject Parliament. It is in our interests and the interests of the nation to revitalise Parliament. I thank you. [Applause.]
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Chairperson, delegates, our guests in the gallery, I rise to support the budget of Parliament as presented by the Chairperson of the National Council of Provinces. It is now a year since this House was established in May 2009. This gives us an opportunity to reflect on the road we have travelled since then.
I would like to start by emphasising that the process of contributing to the development of the budget before us does not start and end with this debate. Parliament has a governance structure for considering issues throughout the year.
Our governance model provides for a Parliamentary Oversight Authority, which is co-chaired by the Speaker of the National Assembly and the Chairperson of the National Council of Provinces. The Parliamentary Oversight Authority is responsible for formulating policy directives in respect of the various services and facilities of Parliament.
Its mandate is to ensure an effective and efficient Parliament by putting in place an appropriate system of governance by means of which Parliament is managed and controlled in support and furtherance of its strategies and policies. The Parliamentary Oversight Authority is accountable directly to the two Houses of Parliament.
Members of Parliament make inputs to Parliament’s budget via two primary structures. These are the Quarterly Consultative Forum and the Parliamentary Budget Forum. The Quarterly Consultative Forum is a forum that facilitates the input of Members of Parliament on matters related to members’ facilities. The Parliamentary Budget Forum is the forum that prepares the parliamentary budget and reports on it. The composition of these structures is explained in the governance model document.
House Chairperson, one of the important tasks of the Fourth Parliament is the implementation of the oversight and accountability model. The impact of the model on the parliamentary programme is significant. For example, a complete oversight process would require additional time for constituency work to ensure sharper focus on oversight matters, greater public participation in parliamentary activities and the consideration of reports of committees, as well as private members’ business. The programme framework to be proposed to the Joint Rules Committee, the Joint Programming Committee and the Programming Committees of both Houses must take into account these requirements.
The model identified potential mechanisms that could further strengthen oversight and accountability. Therefore, the Rules had to be reviewed to provide for regulatory frameworks in respect of the following: the processing of reports from sectoral parliaments; oversight of international agreements; executive compliance; joint reporting by committees; and referral of matters arising from reports of international bodies. The model recommends, among other things, the establishment and/or development of sufficient human resource capacity to enable committees to conduct effective oversight. We are responding to this by increasing support capacity in areas such as research and content analysis.
Also under consideration is the joint parliamentary oversight and assurance committee. This committee is proposed for the purposes of governing the work and function of committees in Parliament.
On the other hand, the implementation of the new Money Bills Amendment Procedure and Related Matters Act, Act 9 of 2009, presents new challenges for Parliament. The Act provides Parliament with a procedure to amend money Bills, as well as norms and standards for amending money Bills before provincial legislatures and related matters.
While much progress has been made to facilitate the implementation of this Act, such as the establishment of the Finance and Appropriations committees in each House, a lot still needs to be done. This includes, for example, processing and adoption of the Division of Revenue Bill. The provisions of the Act were implemented to process the Division of Revenue Bill. However, the time allocated for this process is too limited to invoke the provisions of the Mandating Procedures of Provinces Act to allow the provinces adequate time to process the Bill and provide mandates to their delegates in this House. With regard to the establishment of the parliamentary budget office, it is under consideration. We need to find a common and shared view of how this office should operate. A number of issues have still to be ironed out regarding, among others, the accounting responsibilities of the director and the roles of other structures within Parliament.
On legislative work, our focus has been the review of the legislation that has been passed and rectifying areas of weakness through amendments. However, there is a need for Parliament to ascertain the impact of the laws we pass. Through its committees, this House can start by focusing on section 76 legislation.
Hon members, we are aware of the expressed need to capacitate our committees. As I have indicated, work is being done to ensure that committees have the necessary capacity to carry out their responsibilities. This must include the capacity to ensure value for money and proper spending.
As you are aware, our financial environment is now regulated by the Financial Management of Parliament Act. The Act, which came into operation in April last year in accordance with the transitional arrangements as set out in Schedule 4, will help to ensure transparency, accountability and sound management of the revenue, expenditure, assets and liabilities of Parliament. It reinforces the constitutional status of Parliament in that it ensures a consultative relationship between Parliament and the National Treasury.
It is worth noting that the role of Parliament and the provincial legislatures is located within the broader scope of the legislative sector in South Africa. Through the Speakers’ Forum, we continue to oversee the management and co-ordination of the legislative sector programmes as determined by the South African Legislative Sector Policy and Strategic Framework. This is important because we have one government, which is unitary but with regional features.
House Chairperson, I started by making reference to the work we do through the provincial week, because it is important that we maintain the link with provinces. At this point, I am reminded of what former Indian Prime Minister Indira Gandhi once said:
My grandfather once told me that there were two kinds of people: those who do the work and those who take the credit. He told me to try to be in the first group; there was much less competition there.
Let us be part of the first group of people who do the work. Twelve months after the establishment of this House, allow me to raise certain questions to establish whether we have done what we were supposed to do.
The questions are as follows: What have we done to advance the mandate of this House? What have we done to respond to the priorities we set ourselves in August last year, which are contained in the NCOP Strategic Framework Plan? What have we done to promote intergovernmental relations and co- operative government in the conduct of our business? How have we followed up on service delivery matters that were the subject of consideration by this House? I would like the chairpersons of the committees and the Whippery to consider and respond to these questions before recess. Their responses will give us an opportunity to do an analysis in order to develop our first report, which should be ready after the 2010 Fifa Soccer World Cup.
The legacy of Mandela requires that we work hard to uplift our people and to destroy the remains of the legacy of apartheid. With these words, I would like to thank the officials for the support they continue to give us under the leadership of the Secretary to Parliament. Their role is indispensable, as Members of Parliament rely on technical support to be able to do their work. Thank you. [Applause.]
Mr J J GUNDA: House Chair, and all protocol observed, allow me to congratulate the hon Deputy Chair on the questions she has just asked. We should all ask ourselves those questions. We should take this House very seriously. Today I am going to speak from my heart and forget about the speech that is in front of me. The first thing that you should really know is that this is a serious budget. Since we are claiming that this is the people’s Parliament, as members, we should ask ourselves if we are serving the people who voted for us, doing justice to the provinces, and are delivering the service to them. I believe that the increment of this budget is not much. Our important role is to provide oversight so that people can know the meaning and understand the purpose of the NCOP.
Through the media, we should go out there and make South Africans understand what the NCOP stands for. Fighting amongst ourselves when our people out there are suffering is not going to help us. As the NCOP, we should be hands-on concerning our oversight role and service delivery in the provinces.
The ID does not believe that allowing Ministers to devise their own ministerial handbook will achieve anything in terms of cutting down on expenses. Instead, the ID believes that an ad hoc committee consisting of all parties from both Houses should revise that ministerial handbook in order to bring it in line with the slogan, “Working together we can do more for our people”. If we are serious, we will use that slogan to implement that and to see to it that people on the ground are getting the service. I believe that this House can do anything. There is nothing that is impossible for this House.
I believe that the NCOP has the capacity. When I listened to the people who debated in this House today, they all had the capacity. They had everything inside them to see to it that the Rules in this House are implemented in each and every province, so that the people can understand what the NCOP does in this country. I thank you. [Applause.]
UMntwana M M M ZULU: Sihlalo, ungixolele ngoba eNgilandi ngeke ngiye ngiseAfrika. Sihlalo womhlangano namalungu ahloniphekile ale Ndlu, kanye nezivakashi zethu ezikhona. Nami ngithi angizojoyina bonke abaningi asebekhulumile ngendaba yePhalamende kulo nyaka.
Bese sifisela impumelelo bonke abakhona abalisebenzelayo kulonyaka noma ungakapheli. Sihlalo, ngithi kuleminyaka eyishumi nesithupha eyedlule sakwazi ukuthi sithole intando yeningi sibe nomthethosisekelo wethu okuyiwona laba abafundile abathi yi “Supreme law of our land”.
Ngithi ke kufuneka sibone ukuthi sihlukanise phakathi kwesikuzuzile nesingakuzuzanga ngoba njengabantu kufuneka sikwazi ukubheka ukuthi yikuphi esikuzuzile futhi yikuphi esingakuzuzanga. Lapho kufuneka singamalungu ePhalamende noma amalungu eSishayamthetho Sikazwelonke, namalungu eNdlu Yomkhandlu Kazwelonke Wezifundazwe siyohlala phansi sibheke ukuthi yikuphi esingakuzuzanga. Singenzenjani ukuze sikuzuze ukuze kusizakale abantu bakithi.
Bakithi, uma sibheka kulokhu kubhekwa kweMinyango kahulumeni lokhu abafundile abathi yi “oversight” ngithi kuwumsebenzi obaluleke kakhulu Sihlalo wale Ndlu ukuthi lomsebenzi wenzeke ngoba isibopho sokuchaza ngokwenzekayo yinto edingekayo kunoma yimuphi omunye umuntu kuleli lizwe. Ngoba uma ungenaso isibopho sokuchaza ngokwenzekayo kusho ukuthi usebenza nje, uyadunguza nje, nokugxekwa kufuneka ukuba ugxeke ngokwakhayo ukuze bakwazi nabantu ukuthi izinto zihamba kanjani.
Ngithi alukho nolulodwa usuku lapho kufuneka siziqhenye singabantu abamnyama baseNingizimu Afrika, noma njengabantu baseNingizimu Afrika, abahluphekayo bonke ukuba sikwazi ukuthi siphucule izimpilo zabantu bakithi bonke bakwazi ukuphumelela.
Bakithi lokho okuzuziwe obabamkhulu, abakuzuzanga baze bahamba belwela leli lizwe kuwo wonke amagumbi e-Afrika ngoba yonke indoda emnyama kuleli lizwe iyazi ukuthi amadoda amnyama alwa kanjani, elwa kukubi kungemnandi. Ubabomkhulu akaguqanga ngamadolo ephezu kogogo nje, waye la eSt Helena, eNorthern Cape, kwesakho De Beer ehlezi khona iminyaka. Akaze aguqa. Ngithi kulokho ke Sihlalo ngicela ukuthi njengeqembu leNkatha siyasesekela iSabiwomali ukuba sisetshenziswe kahle sikwazi ukusiza izidingo zabantu abampisholo kulelizwe. Ngiyabonga. (Translation of isiZulu speech follows.)
[Prince M M M ZULU: Chairperson, you will pardon me because I will not speak English while I am in Africa. Chairperson of the Council, hon members of this House, as well as our guests who are present, I just want to join all those who have spoken before me about the performance of Parliament this year.
We also wish all those who work for Parliament success this year, although the year has not yet ended. In the past 16 years we managed to bring about democracy and have our Constitution which is referred to by academics as the supreme law of our land.
I want say that we must separate what we have achieved from what we have not because as people we must be able to recognise what we have achieved and what we have not. What is expected of us as Members of Parliament or as members of the National Assembly, and as members of the National Council of Provinces, is to sit down and check what we did not achieve. What can we do to achieve it in order to assist our people?
Hon members, if we look at our monitoring function with regard to the government departments, which our academics refer to as oversight, I want to say that it is very important, Chairperson of this House, that this job should be done thoroughly because it is the responsibility of every person in this country to account about what is happening. If you do not have the responsibility to explain what is happening it means that you are not doing your best, that you have no direction and that you must be criticised constructively so that our people are informed of what is going on. There should not be a single day when we are proud as black people of South Africa, or as South Africans who are destitute. We must be able to make the lives of all our people better in order for them to succeed in life.
Hon members, what has been achieved by our grandfathers? They did not achieve anything; they died fighting for this country in Africa because every black man in this country knows that men fight under difficult circumstances. My grandfather did not consummate his relationship because he was imprisoned here in St Helena, in the Western Cape, where you reside, Mr De Beer. He lived there for a number of years. He never surrendered. In that context, as the IFP, we support the budget and it should be utilised effectively so that it could cater for the needs of black people in this country. Thank you.]
The HOUSE CHAIRPERSON (Mr R J Tau): Chairperson, we have noted the importance of this particular debate, and maybe before I deal with some issues, there is something I find very interesting that we need to reflect on. It comes from the DA and Cope.
The DA, for a very long time, has very consistently defended the Constitution of the Republic of South Africa. All of us agree that it is a very important document that we need to pride ourselves on. The formation of Cope was based on the defence of the Constitution of the Republic of South Africa. They have also been very consistent in bringing this to the attention of the South African populace, raising false alarms about how the ANC under the leadership of our President, Jacob Zuma, is going to undermine and amend the Constitution.
But I find it quite interesting that in this very important debate today, the DA and Cope are proposing amendments to the Constitution – very selective amendments to the Constitution, for that matter. And we find it very interesting that the DA, in particular, is giving leadership in that regard, that where there are shortcomings, we need to look at the amendment of the Constitution to go forward. And maybe one of the key things that we need to look at is the property clause, because it is through that that we will be able to fight poverty, we will be able to fight the inequality that exists within our society that is created by the very same problems that this Constitution addresses here. [Applause.]
Since 1955, at the gathering of our people in Kliptown, at the Congress of the People, we have been very clear. Here, the people of South Africa declared that South Africa belongs to all those who live in it. It was at that particular gathering that we brought up the concept of a people’s assembly, of a people’s Parliament again. And that concept at that gathering has guided the ANC, throughout the processes of the bannings and even after our liberation. We continued to say, ours will be to build a people’s Parliament in which all those who live in South Africa shall be part and parcel of it and will participate actively in deciding the path that our country is supposed to take. [Applause.]
It is not loose. That concept is not loose. It has a particular history as well, because that history is informed by the ANC’s adoption of a concept referred to as the national democratic revolution. It was explained as follows – that our main mission is the creation of a South Africa that is nonracist, nonsexist and democratic, which will allow all our people to participate actively in the processes of our advancement.
Therefore, as we speak today we are not losing sight of those historical imperatives. Hence today, as the ANC, we can stand up proudly and say that ours is about the development and the strengthening of an activist parliament, because an activist parliament is that parliament that will take into account all the very same aspects that members have been raising. These are strengthening the capacity of Parliament to do oversight and to be accountable, strengthening the capacity of Parliament or the legislatures to have that kind of relationship with the executive.
Our understanding of the separation of powers and the capacity of Parliament is not based on the liberal conceptualisation of oversight, because that conceptualisation sees Parliament as being a watchdog and an institution with the sole responsibility being to criticise, criticise, criticise. Ours is about a relationship, an understanding that there is a separation of powers, and each and every arm has a particular role to play and, by doing that, we complement one another. We do not just shout from the rooftops about how government or the executive is useless and is not doing their work without providing alternatives that seek to enhance the work of the executive. It is that particular role that we will be playing.
I think one of the things that is very important and unique, in actual fact
- and I find it quite strange that it is raised by the DA again - is with the conceptualisation of the National Council of Provinces vis-à-vis how the Senate works. The basis of the establishment of the National Council of Provinces was, in actual fact, to ensure that we build on the capacity of local, provincial and national government in order to be able to work together, hence the intergovernmental relations. It is, therefore, important.
It would have been quite wise and very progressive, for instance, for the DA to have raised a question concerning the role of the SA Local Government Association, Salga. How, then, do we, as the National Council of Provinces, begin to look at the capacity and active role of Salga in the NCOP? I think it is a matter with regard to which we, as the ANC, say we are lacking in that particular area.
Therefore, we need to look at how best we can ensure that Salga plays the strategic role that it is supposed to play – by ensuring that they are actively involved, not only in plenaries in this particular House, but also even at the committee level. The question should probably be: Does Salga have that capacity? And what, therefore, becomes our role as the NCOP in terms of our budget and programme to capacitate and enable Salga to play an active role in the NCOP? I think that is a very important matter that we need to look at.
There is another thing that we, as the ANC, are raising, because we have made a very important observation on oversight and the role that committees are supposed to play vis-à-vis the leadership that must be provided to committees in order for them to do effective oversight. You would find that the Chairperson raises the question on strengthening the capacity of chairpersons of committees with content advisers, secretaries, and researchers. But the question we are raising is the disjuncture that you find that exists between the chair and the secretary of the committee in terms of their reporting mechanism. You would find that the chairperson has no role, no say over his or her own support mechanism. The secretary to the committee reports somewhere, the researcher reports somewhere else, and even, sometimes, the content advisers report somewhere else. [Applause.] That causes a serious disjuncture in terms of the functionality of committees.
Beyond that, maybe there is another question we need to ask ourselves, as Parliament, in terms of our budget. Are we really doing them justice in terms of support to committees, particularly committees of the National Council of Provinces, where you find clustered committees that must do oversight over three departments? Just one department can come and make a presentation to a committee of the NCOP, and it comes with two legal advisers, two researchers and the director-general. The department is heavily resourced, and now they sit here with these members whose capacity cannot match the capacity of the department. I think that is another matter that we really need to look at when we speak about this, especially when it comes to committees of the National Council of Provinces, namely whether really, we need to give the necessary and effective assistance.
Coupled to that, there is a particular wave that we see introduced. As much as the others, for instance Helen Zille, went out to say that this government or this executive has achieved zero under the leadership of President Zuma, there is a particular wave in the country, something new that is being introduced that seeks to revolutionise the functionality of the executive in terms of accountability to the President and accountability to the South African public through the signing of performance-based agreements.
The question that we need to ask ourselves as legislators now is how we position ourselves not to be left behind by the speed at which the executive is moving. If we do not do that, we may find ourselves lagging behind and chasing after the executive, where the executive is running at 340km per hour, while we are still at 60km per hour in terms of doing our oversight work, and so forth.
It is quite important that, as a legislative body, we need to reflect and ponder on some of these questions. What are the implications of these performance agreements between the President and the Ministers and the role of Parliament and its committees to do oversight?
Perhaps this is also important, Chair. In 2004-05 there was a concept that was introduced by the NCOP, and it gained momentum up to a point but we ran just short of implementing it - strengthening our oversight mechanism. One of the things that we were saying was about doing 70% oversight and being in the constituencies, and being in Parliament 30% of the time. That was informed, of course, by the fact that, since 1994 and up until that particular time, we had dealt a lot, and sufficiently so, with legislation.
Is it not possible to really revisit that particular concept and its relevance in strengthening our way of doing oversight? That means we would spend 70% of our time with the people that elected us, with the people that gave us a mandate. For the remaining 30% of the time, we would be here doing our legislative work and other things that are relevant to Parliament.
The last thing I thought would be quite important for us to look at closely is the question of the notion of taking Parliament to the people. Is it effective? Is it working for us? What are the gaps? What are the areas that we need to look at? For instance, an issue that we can begin to grapple with is the following: When we leave a place, how do we consistently keep that link with the people that we visited in order to ensure that by the time something happens in those areas, people are able to carry on and say, “If it were not because of the National Council of Provinces, this particular thing would not have happened”? This is an option, as opposed to merely going in and getting out without really ensuring that together we work with our people to find solutions to their problems.
I think it is quite important that as the NCOP we need to have a mechanism that will ensure that as and when we take Parliament to the people, whether it is the National Assembly through the People’s Assembly, and so forth, we are still able to keep in touch and keep track of the issues that were raised by our people to ensure that they are not left behind.
Let me conclude by saying that a very important commitment was made. That commitment was based on the fact that, as Parliament, we passed legislation and we passed a Budget. That commitment also went to the construction workers, in that they were committed to constructing the stadiums, and so forth. As we speak today, the Local Organising Committee has lived up to that particular commitment, but only as far as the construction workers are concerned. We want to know what is going to happen to the Members of Parliament who passed the budget to ensure that those things do happen. On that note, thank you very much, Chairperson. [Applause.]
The CHAIRPERSON OF THE NCOP: Chairperson, hon Tau, I am not a member of the Local Organising Committee. I am the Chairperson of the NCOP. I am not sure whether you will get the tickets or not, but keep on trying your luck.
Let me start with you and reply to just one thing. I cannot reply to everyone. One of the two things that you have raised that is very important to me is the participation of Salga. That discussion has to continue in the Fourth Parliament and must take place. You are aware that I have said many times in this House that Salga has not taken its full place in the NCOP. I would like you, particularly as the House Chair, to assist me to take that discussion on. We cannot leave it like that because they have a role to play, and I believe, in terms of co-operative government and delivery of services on the ground by the local municipalities, Salga can play a very important role.
On the second thing you have raised, and I have heard it before, I want to say that I find it very strange that a report of a committee can be tabled in this House without a chairperson having gone through that report. I find it strange that the committee secretary just finalises the report, and then the report comes to the House. I don’t know whether I heard you well. That report is the chairperson’s and the committee’s report. It cannot be the secretary’s report.
It is like the Bill. When the Bill is before the committee, it is your Bill. You have to deal with it if there are amendments. I have said it many times. An example of this was the Children’s Bill, as you will remember. It cannot be correct that you make some amendments to the Bill and when the Bill comes to the House to be passed, there are other amendments that you don’t know about. Then you stand in the House and you say that you support the Bill but you don’t know that somebody has added some amendments that you have not seen and discussed. The final piece of legislation that comes to the House should have been passed by the committee, and you should have agreed to those amendments.
The same applies to the report of the committee. The chairperson is the owner of that report. What is it then that you are debating about? Is it the report that you haven’t seen and discussed? How do you defend it? I just want to support you with that one. I think secretaries to the committees must be very careful. Let them give support to the chairpersons, but don’t let them take over from the chairpersons. That is their job. They should not take over. They must give support to the chairpersons. Everything has to be checked by the chairperson before it comes to the House. The last important thing which you have mentioned is the question of follow- ups on our public participation. It doesn’t matter whether it is Taking Parliament to the People, public participation on policy issues or any matter that the committee has undertaken. What is of importance is those regular follow-ups in order for us to get in touch, either with those communities or the leadership around there, to ensure that things are happening the way we want them to happen. That is the capacity –and- I agree with you - that we need to build. Committees should actually build them into their programmes when they carry out their oversight function.
You’ve already said to me that we went to Limpopo and that we should go back. I am going back with a small team in May. I will take one or two of you people. We are going to do some work with the leadership there to check what they have done up to now, because it is leading up to the new local government budget which will be in July. Before they finalise their budget we would like to know what they have done about the issues that have been raised by the people there. We would like to know what the province has done because provinces have their entire budget to apply already to those particular municipalities in order to address some of the issues there. We will do that. [Interjections.] I said I will take a few people with. You must leave it to the chairperson. I will take a few people. I will definitely not go alone.
I have listened to Prince Zulu, Mr Gunda and Mr Plaatjie. All members, including Mr Tau, have emphasised the oversight function. I realise how important this aspect of work is to us as members. I am very happy about that. Without us doing that type of work, it will be as if we are glued to our chairs. It will be as if we do not see what is happening out there. That is the most important work that Members of Parliament have to do, because we represent the people on the ground. We are their mouths, their voices and everything. We have the power, and we are their saviour. If we don’t do that, we will not achieve anything. I am very glad that members have a full grasp of that. Maybe it is of importance that more capacity is built around the Members of Parliament in order to do all those things. I must thank you.
Prince Zulu, for the past three years Parliament has never had qualifications from the Auditor-General. [Applause.] We are managing our money very well. Nobody can say that there is anything wrong with our budget. It has taken us five to six years to remove that. When we took over as presiding officers, we found qualifications that were nearing disclaimers, unfortunately. We, together with the Secretary to Parliament, have overturned that to make our budget more effectively managed. With the Bill that we have passed now, the Financial Management of Parliament Bill, we will do much better in managing our finances in Parliament.
Mr Watson, on your comment on the involvement of the members of the NCOP, I can guarantee that we are involved. We are so small in the NCOP in terms of size. I don’t know what we will do if we are not involving each other. Democracy is about involving other people. I want to repeat it. It is important that everybody is involved, whether you agree on a thing or not. I have said to you many times in this House that involvement does not mean that we will agree all the time on the issues on the table. It does not mean that. We will disagree and sometimes agree. We will find each other where we can find each other. That is an important thing.
Dialogue is very important because one will hear all the sides of the people in this institution. We will keep doing that, and I believe in it. Openness and transparency are very good principles of democracy. We will discuss with the people who are in the institution and take decisions together. You will have a very peaceful institution. You will have an institution that achieves things, rather than having a setback with the things that we are doing in this House.
I am very happy about the way we are functioning, and some of us might be staying a little behind and we are saying: Die agteros kom ook in die kraal [Even those who progress slowly eventually reach their destinations].
We will not leave you behind. We will take you with us. That is important. Let’s assist each other.
In terms of the questions, you are correct. I have made it my job to check, every quarter at least, how many questions have not been answered by the executive so that I can respond on behalf of the members of this House. I have done that again this quarter because we are just finishing our first quarter.
I have already written a letter to the Deputy President. It is here in front of me. If you want a copy of it, you can just ask me. There is a total of 38 written questions from members to which there has been no response. I am not taking this very kindly, because I think 38 questions not responded to are many questions. I have already written to the Deputy President, and I have asked him to intervene as a matter of urgency. It is mostly on the written questions. On oral questions, Ministers come here and they respond to the questions, but the problem comes in with written questions. I have done a check again. From 19 March until 16 April, these questions have not been responded to. I have taken the matter up already with the Deputy President.
In terms of the Rules, I should commend you. Mr Jacobs, the chairperson of the subcommittee on review of Council Rules, and you, as members, have done a wonderful job. I have never seen people working at the speed that you have done. I thought that it would take us another year to review those Rules. You would remember that in the Third Parliament you and I discussed that we should revisit our Rules. The Programming Committee agreed that we should revisit all our Rules because they were drafted in 1994 when we came here. We have completed the review of our Rules. Is the workshop for the Programming Committee or for all of us? The workshop is for the Rules Committee on 4 June.
In terms of points of order, I heard that you have raised it and the presiding officers will meet soon. We will look at ourselves in terms of how we are dealing with those issues concerning the Rules. I want to introduce something in this House. When you stand up on a point of order, can you carry your book with you? Can you tell the Chairperson that you are standing up on a point of order in terms of Rule 106? I want to teach you that.
People just stand up on a point of order, even if it is not a point of order. That wastes the time of the House and interrupts the business of the House. That, at the same time, will teach you how to use the Rules. You are assisting me, as the Chair. You will know if the member is correct or wrong, in terms of Rule 106. You will know if the member could not have raised a point of order, in terms of Rule 106. If we carry our books, even though we memorise the Rule, we can just refer to the Rule. I will then check the Rules while I am sitting here. It also teaches me because I forget some of the Rules. All of us will learn the Rules by doing this. Mr Watson, the other point that you have raised was actually raised by Mr Bloem. I have advised that you should write to the Constitutional Review Committee to look at whether we can deal with that and other discussions can take place. Thank you. [Applause.]
Debate concluded.
ALLEGED INSULT TO PREMIER OF WESTERN CAPE
(Ruling)
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon members, before we part, I have responses for the two points of order that were raised on 5 May 2010. I will then start with hon van Lingen. I would like to make a ruling on a point of order raised by hon van Lingen. The hon member raised a point of order that hon Ntwanambi insulted the Premier of the Western Cape, hon Helen Zille, during her debate. I requested hon van Lingen to indicate to me what it was that was found to be insulting in hon Ntwanambi’s speech.
Hon van Lingen said that it was with reference to the fact that the Western Cape had built toilets without walls and that the premier was not empowering women in the province.
Before I make a ruling, I would like to appeal to members that points of order should not be used either to interrupt the speaker at the podium or as a form of response to a member’s speech. If members disagree with the speaker, they should rather raise such matters during their debates. I therefore rule that there is nothing insulting in the statement made by hon Ntwanambi. But instead, there are political statements and any member who disagrees should rather engage during debates. Thank you.
ALLEGED CONTRAVENTION OF RULE 46
(Ruling)
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): The second ruling is directed to hon Harris. Hon member, I would like to make a ruling on a point of order raised by you during our plenary on Wednesday, 5 May 2010. The hon member has raised a point of order with regard to the statement made by hon Ntwanambi, when she said that the services had been cut off, on the grounds that such a statement is in violation of Rule 46 of the Council Rules. Rule 46 provides that no member may deliberately make a statement in the Council which the member knows is false.
The question that I have to consider is whether the statement made by hon Ntwanambi was false and, if so, whether such a statement was deliberately made, because as presiding officers we are not always privy to the statements that members make in the House. However, on this matter it was reported in the media that certain services were cut off in some areas in the Western Cape.
I therefore rule that it cannot be said that the statement is false. Thank you, members.
The Council adjourned at 12:09. ____
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS
FRIDAY, 7 MAY 2010
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
- Referral of Bill to National House of Traditional Leaders
The Secretary to Parliament has, in accordance with section 18(1) of
the Traditional Leadership and Governance Framework Act, 2003 (Act No.
41 of 2003), referred the Black Authorities Act Repeal Bill [B 9 –
2010] (National Assembly – sec 76) to the National House of Traditional
Leaders, which must, within 30 days from the date of the referral (7
June 2010), make any comments it wishes to make.
National Council of Provinces
The Chairperson
- Referral to Committees of papers tabled
1) Correction: The following entry replaces item (4) published under
Referral to Committees of papers tabled in the Announcements,
Tablings and Committee Reports of 6 May 2010, on page 1301.
(4) The following papers are referred to the Select Committee
on Cooperative Governance and Traditional Affairs for
consideration:
(a) Medium-Term Strategic Plan of the Public Service
Commission (PSC) for 2010-11 to 2012-13.
(b) Strategic Plan of the Department of Public Service and
Administration for 2010-14.
(c) Strategic Plan of the Public Administration Leadership and
Management Academy (Palama) for 2010-11 to 2012-13.
2) Correction: The following entry replaces item (11) published under
Referral to Committees of papers tabled in the Announcements,
Tablings and Committee Reports of 6 May 2010, on page 1303.
(11) The following papers are referred to the Select Committee
on Trade and International Relations for consideration and
report:
(a) Agreement on Mutual Acceptance of Oenological Practices by
the World Wine Trade Group (WWTG), tabled in terms of
section 231(2) of the Constitution, 1996.
(b) Explanatory Memorandum to the Agreement on Mutual
Acceptance of Oenological Practices by the World Wine Trade
Group (WWTG).
(c) Agreement on Requirements for Wine Labelling of the World
Wine Trade Group (WWTG), tabled in terms of section 231(2)
of the Constitution, 1996.
(d) Explanatory Memorandum to the Agreement on Requirements
for Wine Labelling of the World Wine Trade Group (WWTG).
(3) The following paper is referred to the Select Committee on
Security and Constitutional Development for consideration and
report:
(a) Report on the provisional suspension of a magistrate: Mr D
Jacobs, a magistrate at Clocolan in terms of section 13(3)(c)
of the Magistrates Act, 1993 (Act No 90 of 1993). TABLINGS
National Council of Provinces
- The Chairperson
(a) Notice of intervention issued in terms of section 139(1)(b) of
the Constitution, 1996 to Thembisile Hani Municipality, Mpumalanga.
Referred to the Select Committee on Cooperative Governance and
Traditional Affairs for consideration and report.
(b) Statement issued in terms of section 106(1)(b) of the Local
Government: Municipal Systems Act, 2000 (Act No 32 of 2000), on
allegations of maladministration, fraud and corrupt practices
within Emadlangeni Municipality, Kwazulu-Natal.
Referred to the Select Committee on Cooperative Governance and
Traditional Affairs for consideration.
(c) Statement issued in terms of section 106(1)(b) of the Local
Government: Municipal Systems Act, 2000 (Act No 32 of 2000), on
allegations of maladministration, serious malpractice, fraud and
corruption within Umhlathuze Municipality, Kwazulu-Natal.
Referred to the Select Committee on Cooperative Governance and
Traditional Affairs for consideration. COMMITTEE REPORTS
National Council of Provinces
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Report of the Select Committee on Education and Recreation on the oversight visit to Nondzame Primary School, Groot Drakenstein, Paarl on 14 October 2009, dated 17 February 2010
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Introduction The Select Committee on Education and Recreation undertook an oversight visit to Nondzame Primary School in Paarl on Wednesday, 14 October 2009. The visit was in response to correspondence received from the governing body of the school. The visit also aimed to contribute to the Committee’s mandate of ensuring that provincial interests are taken into account in the national sphere of government.
1.1 Delegation The committee consisted of a multiparty delegation led by the Chairperson, Ms M W Makgate (ANC - North West), Ms R N Rasmeni (ANC - North West), Mr J R de Villiers (DA - Western Cape), Ms M L Moshodi (ANC - Free State), Mr S H Plaatjie (Cope - North West), Mr T A Mashamaite (ANC - Limpopo).
The following persons were present:
Ms N May, Principal: Nondzame Primary School;, Ms N Mthwa, Educator: Nondzame Primary School; Ms V Kasibe, Educator: Nondzame Primary School; Mr B Phekula, Educator: Nondzame Primary School; Ms N Ngcikwe, Educator: Nondzame Primary School; Ms N Malangeni, School Clerk: Nondzame Primary School; Mr A Ndlazi, Chairperson: School Governing Body (SGB); Ms N Lufele, SGB member; Ms N Mzimba, SGB member; Mr E Tshitshiba, SGB member; Ms C Gcasamba, Parliamentary Officer Office of the Director General for Basic Education, Mr M Dlanga, Committee Secretary, Mr K Gorata, Language Practitioner, Mr E Lourens, Committee Assistant.
- Activities and Proceedings
The Committee interacted with the school governing body (SGB), as well as educators and was briefed on the challenges facing the school ever since there was talk of a possible merger of the school. The main issues of the meeting were the challenges on how to proceed with the proposed merger and terms and conditions in the event that such a merger did take place. Relocation of the school from Groot Drankenstein to Stellenbosch was also another bone of contention. It transpired during the meeting that the Provincial Department of Education has been offered a piece of land to where the school could be relocated, but due to a misunderstanding between the officials representing the department and the SGB of the school that plan did not materialise. The oversight visit to the school provided the delegation with an in-depth understanding of the situation at Nondzame Primary School.
- Findings
The following formed part of the key findings:
▪ The school is situated on privately-owned land and is the only school in the area using isiXhosa as a medium of instruction.
▪ After a visit by the MEC for Education, a proposal to merge the school with another school offering Afrikaans as a medium of instruction was made.
▪ It appears that there were no clear terms and conditions for the proposed merger, which has led to the conflict.
▪ The Provincial Department of Education did not handle the matter with the sensitivity that it deserved.
▪ The possible closure and merger of the school has led to the school losing a number of teachers due to uncertainty about the future of the school.
▪ The department has been keeping the school in the dark about the processes involved with the proposed merger.
▪ Communication channels between the SGB and the department is almost non- existent, as most of the time the department has been giving instructions to the school.
• The provincial department has at one stage unilaterally appointed a person who referred to himself as a doctor to make an assessment and report back to the provincial department. The doctor reported that for environmental reasons it is not advisable for the school to remain in Groot Drankestein.
• The report by the doctor that the environment in the area was not conducive for human beings and students was disputed by the school management and governing body.
• The name of the doctor sent to do the assessment is not known to the school.
• The school together with the governing body is not opposed to the idea of a proposed merger or relocation.
• The general view is that before the school can consider the proposed merger and possible relocation, terms and conditions need to be clarified.
• Some learners are using bicycles donated to the school as a mode of transport to and from school.
• The school is far from the residential area, and this is one of the reasons why the school is not opposed to the idea of relocating to a place closer to the community.
• The councilor could have a played a major role in this regard, but failed to do so.
• The relations between the councilor and the school are almost non- existent as he is alleged to have failed to act and intervene where his intervention was most needed.
• The regional director did not assist the school to address the issue of the possible relocation and merger.
- Departmental representative Mr Samaal, Circuit Manager
The circuit manager arrived late for the meeting as he was visiting a neighbouring school at the time. Mr Samaal could not respond to any of the questions posed by the delegation since he was not briefed. He reported that he was not directly involved in the matter and was not in a position to respond.
- Challenges
The following formed part of the key challenges that were highlighted:
▪ Lack of library facilities, computers and sports grounds.
▪ Limited number of classrooms resulting in overcrowding.
▪ Lack of security which leads to vandalism.
▪ Insufficient number of teachers which leads to some teachers teaching more than one learning area.
▪ Insufficient school furniture.
▪ Teachers leaving the school for greener pastures. This was also triggered by the possibility of the merger and relocation of the school to Pniel.
▪ Learners walk long distances to and from school as the school does not benefit from the scholar transport grant. Some learners only reach the school by midday due to long distances they have to walk.
▪ Parents are unemployed and it becomes difficult to pay for learners to get to school. This leads to late learners arriving late for school.
- Conclusion
The visit has provided the Committee with a general overview of the challenges faced by the school. The visit also provided the Committee with clear evidence of the situation and the manner in which this whole issue was handled. In essence, the school is faced with a common challenge of poor quality of physical infrastructure and a general lack of resources.
The Committee resolved that the Department of Education in the Province would be summoned to appear before the Select Committee to explain the status of the Nondzame Primary School specifically with regard to the proposed merger and relocation.
- Recommendations
The Committee recommends that:
▪ The Provincial Department of Education should clarify the terms and conditions of the merger and proposed relocation.
▪ The Provincial Department of Education should ensure that in the event that the two schools are merged, the legacy of the two schools is not compromised.
▪ The School Governing Body as well as the management of the school must not be excluded from taking part in the above process.
▪ The challenge at Nondzame Primary is very sensitive and the department has a moral obligation to treat this matter with the urgency it deserves.
▪ Mechanisms should be developed to improve relations between the school governing body and the councillor of the area.
▪ The Department and the school must find an amicable solution without compromising the learner’s constitutional right to education.
▪ Communication channels between the department and the school should be improved.
▪ Communities must begin to treat the school as community centres; they should feel that they own the school, and this will also ensure that no vandalism takes place in the school.
▪ The merger should be done in a way that does not lead to the learners being deprived of their constitutional right of being taught in the language of their choice.
▪ The Department of Education both at district and provincial level must explore ways of developing retention strategies to prevent poaching of teachers by urban schools.
▪ The Department of Education must ensure that Nondazme Primary has a proper infrastructure such as sport facilities, libraries and computer laboratories.
▪ The Department of Education should ensure that scholar transport is provided as a matter of priority.
▪ The Provincial Department must ensure that security is provided to the schools as a matter of urgency.
▪ The Provincial Department of Education must ensure that the school is fenced to prevent vandalism.
▪ That the matter of Nondzame Primary School could have been better handled by the Provincial Department.
▪ The regional and provincial Department of Education must develop mechanisms to provide incentives for teachers in the rural and farm schools such as Nondzame.
Report to be considered
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REPORT OF THE SELECT COMMITTEE ON CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS ON OVERSIGHT VISIT TO UMHLABUYALINGANA LOCAL MUNICIPALITY – DATED 06th APRIL 2010
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Background and Overview 1.1 The Select Committee on Co-operative Governance and Traditional Affairs, having considered the request by the National Council of Provinces (NCOP) on the 06th December 2009, to consider and report on the intervention notice invoked in terms of section 139 (1)(b) of the Constitution at Umhlabuyalingana Local Municipality, reports as follows:
1.2 In terms of section 139(1)(b), when a municipality cannot or does not fulfil an executive obligation in terms of the Constitution or legislation, the relevant provincial executive may intervene by taking any appropriate steps to ensure the fulfilment of that obligation, including assuming the responsibility for the relevant obligation in that municipality.
1.3 In terms of NCOP rule 101, the Office of the Chairperson of the NCOP referred the notice of intervention in the affairs of Umhlabuyalingana Local Municipality to the Select Committee on Co-operative Governance and Traditional Affairs for consideration and reporting. On the 19th February 2010, the Select Committee took a decision during its meeting to conduct an oversight visit to the above-mentioned Municipality on the 17th March 2010.
-
Purpose and Objectives 2.1 The objectives of the oversight visit was to determine whether procedural requirements have been met and to verify whether the Provincial Executive has used its discretion appropriately before the Committee can approve/disapprove the intervention. Through the deliberations and interaction with internal and external stakeholders, the Committee wanted to determine how the Provincial Executive was intending to restore the fulfilment of the relevant obligations and ensure fulfilment in the long-term. The aim being to ensure that intergovernmental checks and balances aimed at guarding the integrity and efficiency of the intervention process.
-
Delegation 3.1 The Delegation of the Committee was composed of the following Members of Parliament and Officials: Hon MH Mokgobi, Limpopo (ANC); Hon AG Matila, Gauteng (ANC); Hon DV Bloem, Free State (COPE); Mr TM Manele, Committee Secretary (Committee Section); Mr N Mfuku, Content Adviser (Committee Section); Mr V Mfuniselwa, Administration Assistant (Committee Section).
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Introduction 4.1 On the 24th December 2009 the KwaZulu-Natal MEC for Co-operative Governance and Traditional Affairs tabled a notice of intervention on Umhlabuyalingana Local Municipality to the Office of the Chairperson of the NCOP. Subsequent to the tabling, a notice of intervention was referred to the Select Committee on Co-operative Governance and Traditional Affairs for consideration and reporting in terms of Council Rule 101. In compliance with the Council referral, the Select Committee resolved to undertake a fact-finding visit to the Municipality on the 17th March 2010. In terms of section 139 (2)(b)(ii) of the Constitution, the intervention must end if the NCOP does not positively approve the intervention within 180 days, in this case before the end of the 24th May 2010, since the intervention has began.
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Problems Identified by the Provincial Executive Council (PEC) 5.1 The main issues identified by the Provincial Executive to intervene in the affairs of Umhlabuyalingana Local Municipality related to the breach of legislation, lack of accountability, none availability of section 57 managers, allegations of maladministration, fraud and corruption, irregular, fruitless and wasteful expenditure, unauthorized expenditure, cash flow problems and late payments of salaries and creditors.
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Appointment and Functions of the Administrator 6.1 The Administrator was appointed on the 24th November 2009 to undertake the functions as contained in terms of Section 51 of the Municipal System Act, including the development of a turn–around strategy, rectification of all the decisions made by the Municipal Council prior to implementation, rectification of all decisions taken by the Municipal Manager and section 57 managers in terms of delegated or original authority, ensuring the implementation of Council resolutions, implement a system to control and approve all expenditure, implementation of governance procedures and systems, implementation of financial systems, procedures and policies, implementation of the Municipal Property Rates Act, preparation of the adjustment budget for the 2009/10 financial year, and reviewing the organisational structure of the Municipality.
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Oversight Visit to Umhlabuyalingana Local Municipality 7.1 On the 17th March 2010 the Delegation of the Committee had interactive and robust engagements with the internal and external stakeholders of the Umhlabuyalingana Local Municipality. The main internal stakeholders the Delegation interacted with in the Municipality included the Speaker, Mayor, Chief Whip, Ward Committee Members, Councillors and the Administrator. The main external stakeholders the Delegation interacted with included members of the community and business forums and non-governmental organizations.
7.2 For the purpose of this report, the submissions made by both internal and external stakeholders are structured based on the five key performance areas of the local government which are: Municipal Transformation; Basic Service Delivery; Local Economic Development; Municipal Financial Viability and Management as well as Good Governance and Public Participation.
(A). Municipal Transformation and Organisational Development
7.3 Administrator: The Administrator indicated that on the 14th April 2009 the MEC of the then Local Government and Traditional Affairs gave notice to Umhlabuyalingana Municipal Council of his intervention in terms of section 136 and137 of the Municipal Finance Management Act (MFMA) and section 139 of the Constitution, which raised matters related to the municipal inability to meet all its current creditors commitment and payments, irregular expenditure, utilization of conditional capital grant funding is utilized for operating expenditure, and gross mismanagement of cash resources. 7.4 Members of the Community Forums: The major concerns raised by the Members of the Community Forums in respect to transformation and organisational development related to the failure of the Mayor to implement Council resolutions, more especially with regard to the suspension of the Chief Financial Officer and the Municipal Manager, as well as instituting of a forensic investigation on misappropriation of municipal funds.
(B). Basic Service Delivery
7.5 Administrator: The Administrator indicated that some of the challenges faced by the Municipality were the wrong use of the Municipal Infrastructure Grant (MIG) funds on Council activities, at the expense of service delivery. However, the major progress reported thus far by the Administrator was the co-operative initiatives of the Municipality to involve non-governmental organisations and community members in the municipal planning and development processes.
(C). Local Economic Development (LED)
7.6 Ward Committees: In terms of this key performance area, the concerns registered by Ward Committees with regard to LED related to lack of land use management system, lack of spatial development and proper Integrated Development Planning (IDP).
(D). Municipal Financial Viability and Management
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Administrator: The major challenges reported by the Administrator in respect of financial management related to lack of financial recovery plan and spending of funds on operational matters rather than on service delivery matters. Some of the major municipal financial viability and management progress reported by the Administrator included successful stabilization of municipal finances with a cash- flow, the development of a stringent cash-flow management plan and the development of financial-recovery plan through the co-operation of the Municipal Councilors.
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Ward Committees: The major progress reported by the Ward Committee Members as the result of the appointment of the Administrator and the placement of the municipality under section 139 (1)(b) of the Constitution related to the development of Municipal Turn-Around Strategy to manage municipal finances efficiently.
(E). Good Governance and Public Participation
7.9 Administrator: The Administrator indicated that the Municipality had involved members of the public to be part of the consultation process related to service delivery and municipal planning. He further acknowledged the support received from the Municipal Council.
7.10 Ward Committees: Members of the Ward Committees in respect of good governance and public participation, acknowledged the initiatives developed by Administrator in consulting with the Councillors, non- governmental organisations and Members of the Ward Committees in developing the municipal turn around strategy, financial recovery plan and the medium-term budget review.
- Committee Observations
8.1 The Delegation of the Committee has observed that the since the placing of the Municipality under section 139 (1)(b) of the Constitution and the appointment of the Administrator, the Municipality has made progress in respect of developing a turn-around strategy, development of medium-term budget review and municipal financial recovery plan.
8.2 Furthermore, it was observed that in all the intervention visits undertaken by the Committee so far, Umhlabuyalingana Local Municipality reflected a significant level of political unity and co- operative governance in addressing the municipal challenges.
- Acknowledgement
9.1 The Committee Delegation acknowledged the varied contributions of the parliamentary staff who participated in the oversight visit in their various capacities. A word of appreciation is also extended to all the internal and external stakeholders of the municipality who interacted and had robust engagements with the Delegation of the Committee on matters related to the placement of the Municipality under section 139 (1) (b) of the Constitution.
- Recommendations
10.1 Having conducted the oversight visit to Umhlabuyalingana Local Municipality and interacted with internal and external stakeholders, the Select Committee on Co-operative Governance and Traditional Affairs recommends as follows:
10.1.1 The National Council of Provinces approves the
intervention as issued by the Provincial Executive Council in
terms of section 139 (1)(b) of the Constitution.
10.1.2 The Administrator should fast-tract the process of
appointing Section 57 Managers and assist the Municipality in
developing a labour-retention strategy, in order to ensure that
future service delivery projects have the support of the
community and are aligned with the IDP.
10.1.3 The KwaZulu-Natal MEC for Co-operative Governance and
Traditional Affairs should table quarterly progress reports to
the NCOP and the Provincial Legislature on the status of
intervention in the Municipality, including challenges
encountered.
10.1.4 The South African Local Government Association in co-
operation with Local Government Sector Education and Training
Authority should facilitate the training and capacity building
for Municipal Councillors; to further deepen their understanding
of the oversight role; legal framework and policies that govern
the activities of the Municipality.
10.1.5 The South African Local Government Association should also
facilitate Executive Training Programme for the municipal
officials.
10.1.6 The approved report by the NCOP should be shared with all
the internal and external stakeholders of Umhlabuyalingana Local
Municipality whom the Committee Delegation interacted with
during the oversight visit.
7. The Select Committee on Co-operative Governance and Traditional
Affairs, in co-operation with the relevant Portfolio Committee
in KwaZulu-Natal Provincial Legislature would conduct a follow-
up visit to the Municipality, three months after the
intervention has ended in order to monitor through interaction
with internal and external stakeholders, progress made in
respect of the intervention in the Municipality.
Report to be considered.
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REPORT OF THE SELECT COMMITTEE ON CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS ON OVERSIGHT VISIT TO INDAKA LOCAL MUNICIPALITY – DATED 06th APRIL 2010
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Background and Overview 1.1 The Select Committee on Co-operative Governance and Traditional Affairs, having considered the request by the National Council of Provinces (NCOP) on the 06th December 2009, to consider and report on the intervention notice invoked in terms of section 139 (1)(b) of the Constitution at Indaka Local Municipality, reports as follows:
1.2 In terms of section 139(1)(b), when a municipality cannot or does not fulfil an executive obligation in terms of the Constitution or legislation, the relevant provincial executive may intervene by taking any appropriate steps to ensure the fulfilment of that obligation, including assuming the responsibility for the relevant obligation in that municipality.
1.3 Section 139 (2) of the Constitution requires that the provincial executive to notify the NCOP within 14 days when it intervenes in a municipality, and the NCOP may disapprove/approve the intervention within 180 days after the intervention has begin.
1.4 In terms of NCOP rule 101, the Office of the Chairperson of the NCOP referred the notice of intervention in the affairs of Indaka Local Municipality to the Select Committee on Co-operative Governance and Traditional Affairs for consideration and reporting. On the 19th February 2010, the Select Committee took a decision during its meeting to conduct an oversight visit to the above-mentioned Municipality on the 18th March 2010.
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Purpose and Objectives 2.1 The objectives of the oversight visit was to determine whether procedural requirements have been met and to verify whether the Provincial Executive has used its discretion appropriately before the Committee can approve/disapprove the intervention. Through the deliberations and interaction with internal and external stakeholders, the Committee wanted to determine how the Provincial Executive was intending to restore the fulfilment of the relevant obligations and ensure fulfilment in the long-term. The aim being to ensure that intergovernmental checks and balances aimed at guarding the integrity and efficiency of the intervention process.
-
Delegation 3.1 The Delegation of the Committee was composed of the following Members of Parliament and Officials: Hon MH Mokgobi, Limpopo (ANC); Hon AG Matila, Gauteng (ANC); Hon DV Bloem, Free State (COPE); Mr TM Manele, Committee Secretary (Committee Section); Mr N Mfuku, Content Adviser (Committee Section); Mr V Mfuniselwa, Administration Assistant (Committee Section).
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Introduction 4.1 On the 24th November 2009 the KwaZulu-Natal MEC for Co-operative Governance and Traditional Affairs tabled a notice of intervention on Indaka Local Municipality to the Office of the Chairperson of the NCOP. Subsequent to the tabling, a notice of intervention was referred to the Select Committee on Co-operative Governance and Traditional Affairs for consideration and reporting in terms of Council Rule 101.
4.2 In compliance with the Council referral, the Select Committee resolved to undertake a fact-finding visit to the Municipality on the 18th March 2010. In terms of section 139 (2)(b)(ii) of the Constitution, the intervention must end if the NCOP does not positively approve the intervention within 180 days, in this case before the end of the 24th May 2010 since the intervention began.
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The Reason for Intervention in Indaka Local Municipality 5.1 The main issues identified by the Provincial Executive to intervene in the affairs of Indaka Local Municipality related to the lack of capacity in the Municipal Council to exercise an oversight role and implement municipal reforms, non-submission of the 2008/09 annual financial statements, non-compliance with section 121 of the Municipal Finance Management Act (MFMA), serious deficiencies in management systems and other accounting and financial controls.
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Appointment and Functions of the Administrator 6.1 The Administrator was appointed on the 24th November 2009 to undertake the functions as contained in terms of Section 51 of the Municipal System Act, including the development of a turn–around strategy, rectification of all the decisions made by the Municipal Council prior implementation, rectification of all decisions taken by the Municipal Manager and section 57 managers in terms of delegated or original authority, ensuring the implementation of Council resolutions, implementation of a system to control and approve all expenditure, implementation of governance procedures and systems, implementation of financial systems, procedures and policies, implementation of the Municipal Property Rates Act, preparation of the adjustment budget for the 2009/10 financial year, and reviewing the organisational structure of the Municipality.
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Oversight Visit to Indaka Local Municipality 7.1 On the 18th March 2010 the Delegation of the Committee had interactive and robust engagements with the internal and external stakeholders of the Indaka Local Municipality. The main internal stakeholders the Delegation interacted with in the Municipality included the Speaker, Mayor, Chief Whip, Ward Committee Members, Councillors and the Administrator. The main external stakeholders the Delegation interacted with included members of the community and business forums and non-governmental organizations.
7.2 For the purpose of this report, the submissions made by both internal and external stakeholders are structured based on the five key performance areas of the local government which are: Municipal Transformation; Basic Service Delivery; Local Economic Development; Municipal Financial Viability and Management as well as Good Governance and Public Participation.
(A). Municipal Transformation and Organisational Development
7.3 Administrator: The municipal transformation and organisational development issues reported by the Administrator included the finalization of a disciplinary action against the suspended Municipal Manager and the stabilization of the municipal administration. Furthermore, the Manager in the Mayor’s Office salary was cut-off because of his long absence from work, and his disciplinary hearing was schedule for the 19th March 2010.
- Organised Labour: the major transformation and organisational development progress reported by the representatives of IMATU and SAMMU related to the open door policy approach adopted by the Administrator in dealing with matters related to the labour forum, and problems pertaining to job evaluation system. Furthermore, a concern was raised with regard to the wage-gap between different occupational levels which requires urgent attention.
(B). Basic Service Delivery
7.5 Administrator: The major basic service delivery priorities reported by the Administrator as the result of the developed turn-around strategy included the review and evaluation of allocated powers and functions, identification of core powers and functions to ensure provision of basis services and identification of functions that could be provided collectively with other municipalities within the district.
7.6 Ward Committees: The major basic service delivery concerns raised by the Ward Committee Members related to lack of development, lack of drinking water and poor road infrastructure. In addition, the Ward Committee Members raised a concern pertaining to the provision of electricity, since there was still no electricity reticulated in areas like Stanford and Dikishoba.
- Traditional Leaders: The major concerns raised by the local traditional leaders in respect of basic service delivery related to the lack of decent roads and lack of access to drinking water.
(C). Local Economic Development (LED)
7.8 Ward Committees: The LED concerns raised by the members of the Ward Committees related to the lack of economic development and job creation opportunities, lack of agricultural projects and the lack of industrial development in the municipal jurisdiction.
(D). Municipal Financial Viability and Management
7.9 Administrator: Some of the major priorities in terms of the municipal turn-around strategy reported by the Administrator included the updating of financial systems, finalization and adoption of adjustments budget, development of a list of outstanding creditors and payment plan, recovery of the withheld local government equitable share, resolution of audit findings, drafting of a credible 2010/11 Integrated Development Plan (IDP) and budget as the reconstitution of all matters related to supply chain management.
7.10 The Administrator further reported that the deficit for the 2007/08 stood a R8, 5 million, in 2008/09 it was reduced to R5 million and in 2009/10 it was expected to be reduced to R1 million. He further indicated that the Municipal Council has made bad decisions in the past that has led to the current predicament facing the Municipality.
(E). Good Governance and Public Participation
7.11 Administrator: Some of major good governance and public participation priorities reported by the Administrator in terms of the developed turn-around strategic plan related to raising an awareness on local government legislative environment, ensuring compliance in order to ensure a well functioning and developmental Municipality, consideration and adoption of Standing Rules and Orders, reconstituting the Ward Committees and ensuring municipal accountability and oversight.
7.12 Ward Committees: Members of the Ward Committees raised concerns ranging from non-functioning of Ward Committees, lack of human and financial resources for the Ward Committees, inadequate capacity building programmes for Members of the Ward Committees and lack of consultation and communication with local farmers.
- Committee Observations and Opinion
8.1 The Delegation of the Committee has observed that since the placing of the Municipality under section 139 (1)(b) of the Constitution and the appointment of the Administrator, the Municipality has made significant progress in respect of the development of turn-around strategy, drafting of 2010/11 IDP and reconstitution of all matters related to supply chain management.
8.2 The Delegation is of the opinion that the current Acting Municipal Manager should work closely with Administrator for skills transfer. This will facilitate capacity building and administration stability when the intervention expires.
8.3 In addition, the Delegation is also of the opinion that the district and the local municipality should speedily work together in addressing water-shortages, as well as powers and functions.
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Acknowledgement 9.1 The Committee Delegation acknowledged the varied contributions of the parliamentary staff who participated in the oversight visit in their various capacities. A word of appreciation is also extended to all the internal and external stakeholders of the municipality who interacted and had robust engagements with the delegation of the committee on matters related to the placement of the municipality under section 139 (1) (b) of the Constitution.
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Recommendations
10.1 Having conducted the oversight visit to Indaka Local Municipality and interacted with internal and external stakeholders, the Select Committee on Co-operative Governance and Traditional Affairs recommends as follows:
10.1.1 The National Council of Provinces approves the
intervention as issued by the Provincial Executive Council in
terms of section 139 (1)(b) of the Constitution.
10.1.2 The Administrator should fast-tract the process of
appointing Section 57 Managers and assist the Municipality in
developing a labour retention strategy, in order to ensure that
future service delivery projects have the support of the
community and are aligned with the IDP.
10.1.3 The KwaZulu-Natal MEC for Co-operative Governance and
Traditional Affairs should table quarterly progress reports to
the NCOP and the Provincial Legislature on the status of
intervention in the Municipality, including challenges
encountered.
10.1.4 The South African Local Government Association in co-
operation with Local Government Sector Education and Training
Authority should facilitate the training and capacity building
for Municipal Councillors; to further deepen their understanding
of the oversight role; legal framework and policies that govern
the activities of the Municipality.
10.1.5 The South African Local Government Association should also
facilitate Executive Training Programme for the municipal
officials.
6. The approved report by the NCOP should be shared with all the
internal and external stakeholders of Indaka Local Municipality
whom the Committee Delegation interacted with during the
oversight visit.
7. The Select Committee on Co-operative Governance and Traditional
Affairs, in co-operation with the relevant Portfolio Committee
in KwaZulu-Natal Provincial Legislature would conduct a follow-
up visit to the Municipality, three months after the
intervention has ended in order to monitor through interaction
with internal and external stakeholders, progress made in
respect of the intervention in the Municipality.
Report to be considered.
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REPORT OF THE SELECT COMMITTEE ON CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS ON OVERSIGHT VISIT TO OKHAHLAMBA LOCAL MUNICIPALITY – DATED 06th APRIL 2010
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Background and Overview 1.1 The Select Committee on Co-operative Governance and Traditional Affairs, having considered the request by the National Council of Provinces (NCOP) on the 12th January 2010, to consider and report on the intervention notice invoked in terms of section 139 (1)(b) of the Constitution at Okhahlamba Local Municipality, reports as follows:
1.2 In terms of section 139(1)(b), when a municipality cannot or does not fulfil an executive obligation in terms of the Constitution or legislation, the relevant provincial executive may intervene by taking any appropriate steps to ensure the fulfilment of that obligation, including assuming the responsibility for the relevant obligation in that municipality.
1.3 In terms of NCOP Rule 101, the Office of the Chairperson of the NCOP referred the notice of intervention in the affairs of Okhahlamba Local Municipality to the Select Committee of Co-operative Governance and Traditional Affairs for consideration and reporting. On the 19th February 2010, the Select Committee took a decision during its meeting to conduct an oversight visit to the above-mentioned Municipality on the 19th March 2010.
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Purpose and Objectives 2.1 The main objectives of the oversight visit was to determine whether procedural requirements have been met and to verify whether the Provincial Executive has used its discretion appropriately before the Committee can approve/disapprove the intervention. Through the deliberations and interaction with internal and external stakeholders, the Committee wanted to determine how the Provincial Executive was intending to restore the fulfilment of the relevant obligations and ensure fulfilment in the long-term. The aim being to ensure that intergovernmental checks and balances aimed at guarding the integrity and efficiency of the intervention process.
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Delegation 3.1 The Delegation of the Committee was composed of the following Members of Parliament and Officials: Hon MH Mokgobi, Limpopo (ANC); Hon AG Matila, Gauteng (ANC); Hon DV Bloem, Free State (COPE); Mr TM Manele, Committee Secretary (Committee Section); Mr N Mfuku, Content Adviser (Committee Section); Mr V Mfuniselwa, Administration Assistant (Committee Section).
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Introduction
4.1 On the 24th November 2009 the KwaZulu-Natal MEC for Co-operative Governance and Traditional Affairs tabled a notice of intervention on Okhahlamba Local Municipality to the Office of the Chairperson of the NCOP. Subsequent to the tabling, a notice of intervention was referred to the Select Committee on Co-operative Governance and Traditional Affairs for consideration and reporting in terms of Council Rule 101. In compliance with the Council referral, the Select Committee resolved to undertake a fact-finding visit to the Municipality on the 19th March 2010.
4.2 In terms of section 139 (2)(b)(ii) of the Constitution, the intervention must end if the NCOP does not approve the intervention within 180 days, in this case before the end of the 24th May 2010 since the intervention began.
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Reasons for Intervening in Okhahlamba Local Municipality 5.1 The main issues identified by the Provincial Executive to intervene in the affairs of Okhahlamba Local Municipality related to persistent or material breach of legislation; lack of financial and management accountability; serious allegations of maladministration, fraud and corruption; irregular fruitless and wasteful expenditure; unauthorized expenditures; cash flow problems and late payments of salaries. Furthermore, there was a complete disdain for the views of the opposition and the ignoring of appeals to desist from misusing political majority, by subjecting to a vote matters that had serious financial and legal consequences.
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Appointment and Functions of the Administrator
6.1 The Administrator was appointed on the 24th November 2009 to undertake the functions in terms of Section 51 of the Municipal System Act; including development of turn–around strategy; rectification of all decisions of the Municipal Council prior to implementation; rectification of all decisions taken by Municipal Manager and section 57 managers in terms of the delegated or original authority; ensuring the implementation of Council resolution; implementation of a system to control and approve all expenditure; implementation of governance procedures and systems; implementation of financial systems, procedures and policies; implementation of Municipal Property Rates Act (MPRA), preparation of the adjustment budget for the 2009/10 financial year, and the reviewing of the municipal organisational structure.
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Oversight Visit to Okhahlamba Local Municipality
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On the 19th March 2010 the Delegation of the Committee had interactive and robust engagements with the internal and external stakeholders of the Municipality. The main internal stakeholders the Delegation interacted with in the Municipality included the Speaker, Mayor, Chief Whip, Ward Committee Members, Councillors and the Administrator. The main external stakeholders the Delegation interacted with included members of the community and business forums and non-governmental organizations.
7.2 For the purpose of this report, the submissions made by both internal and external stakeholders are structured on the basis of the five strategic key performance areas of the local government agenda which are: Municipal Transformation; Basic Service Delivery; Local Economic Development; Municipal Financial Viability and Management as well as Good Governance and Public Participation.
(A). Municipal Transformation and Organisational Development
7.3 Administrator: The transformation and organisational development crisis reported by the Administrator involved the appointment of personnel without relevant qualifications and experience, high-turn over of Municipal Managers and Chief Financial Officers; staff employment driven by narrow political considerations; wrong application of staff placement policy resulting in wholesale promotions of staff at various levels and thinness in terms of skills and competency at managerial and supervisory levels.
7.4 Organised Labour: The municipal transformation and organisational development challenges raised by the South African Municipal Workers Union (SAMWU) representative related to the non-functionality of the labour forum and the non-implementation of labour related decisions.
(B). Basic Service Delivery
7.5 Administrator: Some of the service delivery crisis reported by the Administrator related to the huge backlogs identified in water and sanitation; stalling of housing projects; lack of clarity on how the list of beneficiaries of free basic services for electricity was compiled; poor maintenance of infrastructure and municipal buildings.
7.6 Rate Payers Association: The Rate Payers Association raised concerns related to the lack of service delivery and shortage of running water in the municipal jurisdiction, especially in areas like Tsakani. Equally, they emphasized the importance of rendering services efficiently by the Municipality.
(C). Local Economic Development (LED)
7.7 Bergville Chamber of Business: The Chamber reported that the Municipal Council did not recognized business as an important stakeholder for LED and job creation. It was indicated that political interference was highly prevalent in the supply chain management of the Municipality. Furthermore, they also divulged that the developmental approach of the Municipal Council lacked a vision, and did not have budget commitments.
(D). Municipal Financial Viability and Management
7.8 Administrator: The Administrator reported that there was serious challenges since expenditure was not backed by authentic supporting documents; there was a lot of disappearance of supporting documents; misstatements in Annual Financial Statements (AFS); lack of supporting documents on investments recorded in the AFS and Conditional Grants have been utilised for purposes other than those for which they were intended.
7.9 Administrator: The other financial viability and management crisis reported by the Administrator related to asset register which was not updated and assets not physically verifiable; individual members of staff often by-passed supply chain management processes without censure; over-expenditure on votes; blurring of segregation of roles and duties and ineffective Internal Audit and Audit Committee.
7.10 Administrator: In order to deal with the above-mentioned crisis, the Administrator reported that the turn- around strategic plan has been developed to focus on the preparation of the Annual Report in terms of section 121 of the Municipal Finance Management Act (MFMA); submission of the Mid-Year Budget and Performance Assessment by the 25th January 2010 in terms of section 72 of the Act; preparation of Budget Adjustment and identification and resolving of all obstacles to the implementation of the MPRA.
7.11 Organized Labour: In order to deal with municipal financial viability and management, the representative of SAMMU appealed to the Provincial Department to provide the Municipality with the financial assistance and the rate payers to pay for the services due.
(E). Good Governance and Public Participation
7.12 Administrator: Some of the governance related concerns reported by the Administrator included the ineffective Ward Committees and Community Development Workers (CDWs). It was also indicated that the Integrated Development Plan (IDP) of Okhahlamba Local Municipality has been ranked as falling amongst the worst IDPs of all municipalities in KwaZulu-Natal Province. There are indications that the same IDP has been submitted twice without review, the only change being the year of submission. Similarly, the input of the Provincial Departments and other Agencies were evidently absent - a signal of poor participation of Departments in the IDP process.
7.13 Administrator: The other governance crisis reported by the Administrator related to the non-clarification of the different roles of functionaries and officials; Intra-party and inter-party contradictions had manifested through the attempts to unseat both the Mayor and the Speaker; non-functioning of internal audit, non- functioning of the Shared Services Model with the District and the poor working relations by the Municipality with the District.
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Ward Committees: Some of the governance and public participation concerns raised by Ward Committees Members related to the non–functioning of Ward Committees; lack of consultation between Councillors and Ward Committee Members; Councillors appointing people not elected by the respective communities; lack of co-operation between the Councillors and Traditional Leaders.
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Organized Labour: Some of the governance concerns raised by the representatives of SAMMU related to the disfunctionality of the labour forum, as well as the implementation of its decisions.
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Philakahle Working Centre: This non-governmental organisation indicated that public consultation did not exist in the Municipality, especially on consultative issues like the IDP. They recommended that the Municipal Council to immediately implement government programmes.
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Committee Observations and Opinion
8.1 The Delegation of the Committee has observed that since the placement of the Municipality under section 139 (1)(b) of the Constitution significant progress has been made in respect of the development of a turn- around strategy; development of financial recovery plan and development of rate payers policy.
8.2 The Municipality has through the appointment of the Administrator developed a best diagnostic analytical tool focusing on the strategy; governance; finance; service delivery; human resources and capacity development support analysis.
8.3 The Municipality has put in place a plan to address irregularities related to the forensic audit investigation, criminal investigations pursued by the Hawks; disciplinary actions against the Tourism Manager, Cashier Supervisor; suspension of Director: Corporate Services; consideration of legal options to review the 99 Year Lease Agreement and the recovery of R600 000 paid as a deposit for the cemetery land.
- Acknowledgement
9.1 The Committee Delegation acknowledged the varied contributions of the parliamentary staff who participated in the oversight visit in their various capacities. A word of appreciation is also extended to all the internal and external stakeholders of the municipality who interacted and had robust engagements with the delegation of the committee on matters related to the placement of the municipality under section 139 (1) (b) of the Constitution.
- Recommendations
10.1 Having conducted the oversight visit to Okhahlamba Local Municipality and interacted with internal and external stakeholders, the Select Committee on Co-operative Governance and Traditional Affairs recommends as follows:
10.1.1 The National Council of Provinces approves the
intervention as issued by the Provincial Executive Council in
terms of section 139 (1)(b) of the Constitution.
10.1.2 The Administrator should fast-tract the process of
appointing Section 57 Managers, the implementation of the
financial recovery plan and the municipal turn-around strategy.
10.1.3 The Administrator should resolve the problems related to
the non-functionality of the Ward Committees and ensure that
Local Economic Development takes place through community
consultation and participation.
10.1.4 The Administrator should assist the Municipality and the
District in strengthening the District Inter-Governmental
Relation Forum (IGR), in order to achieve co-operative
governance.
10.1.5 The KwaZulu-Natal MEC for Co-operative Governance and
Traditional Affairs should table quarterly progress reports to
the NCOP and the Provincial Legislature on the status of the
intervention in the Municipality, including challenges
encountered.
10.1.6 The South African Local Government Association in co-
operation with Local Government Sector Education and Training
Authority should facilitate the training and capacity building
for Municipal Councillors; to further deepen their understanding
of the oversight role; legal framework and policies that govern
the activities of the Municipality.
10.1.7 The South African Local Government Association should also
facilitate an Executive Training Programme for the municipal
officials.
8. The approved report by the NCOP should be shared with all the
internal and external stakeholders of Okhahlamba Local
Municipality whom the Committee Delegation interacted with
during the oversight visit.
9. The Select Committee on Co-operative Governance and Traditional
Affairs in co-operation with the relevant Portfolio Committee in
KwaZulu-Natal Provincial Legislature would conduct a follow-up
visit to the Municipality, three months after the intervention
has ended in order to monitor through interaction with internal
and external stakeholders, progress made in respect of the
intervention in the Municipality.
Report to be considered.
MONDAY, 10 MAY 2010
COMMITTEE REPORTS
National Council of Provinces
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The Report of the Select Committee on Finance on the oversight visit to Northern Cape’s Municipalities from 02-04 March 2010, dated 07 May 2010
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Introduction
The Select Committee on Finance (SCoF) was established in terms of section 4(1) of the Money Bills Amendment Procedure and Related Matters Act, No. 9 of 2009. In terms of section 4(2) of this Act, the SCoF has the powers and functions conferred to it by Constitution, legislation, the standing rules or resolution of a House, including considering and reporting on: a) the national macro-economic and fiscal policy; b) amendment to the fiscal framework, revised fiscal framework and revenue proposals and Bills; c) actual revenue published by the National Treasury; and d) any other related matter set out in this Act.
On the other hand, the Select Committee on Appropriations (SCoA) was established in terms of section 4(3) of the Money Bills Amendment Procedure and Related Matters Act, No 9 of 2009. In terms of section 4(4) of this Act, the SCoA has the powers and functions conferred to it by the Constitution, legislation, the standing rules or a resolution of a House, including considering and reporting on: a) spending issues; b) amendments to the Division of Revenue Bill, the Appropriation Bill, Supplementary Appropriations Bill and Adjustment Appropriations Bill; c) recommendations of the Financial and Fiscal Commission, including those referred to in the Intergovernmental Fiscal Relations Act, No. 97 of 1997; d) reports on actual expenditure published by the National Treasury; and e) Any other related matter set out in this Act.
Furthermore, the mandate of the Select Committee on Appropriations and the Select Committee on Finance (henceforth referred to as the Committees) encompasses the Committees’ functions to legislate, conduct oversight of the Executive; promote public participation, facilitate international agreements and review matters of public interest in relation to National Treasury and its entities, and the South African Reserve Bank.
1.1 Delegation The oversight visit took place from 02 to 04 March 2010. Meetings were held at Kimberly (Protea Hotel) and Upington (Protea Hotel) in Northern Cape.
The delegation consisted of: • Hon. CJ de Beer (ANC) (Chairperson of SCoF); • Hon. TA Chaane (ANC); (Chairperson of SCoA) • Hon. SD Montsitsi (ANC); • Hon. BL Mashile (ANC); • Hon. JJ Gunda (ID); • Hon. Lees (DA); and • Hon. TD Harris (DA).
Northern Cape’s Provincial Legislature Members • Hon. D. P. Dikgetsi; • Hon. S Lubbe; • Hon. D Stubbe; and • Hon A.J Beukes.
The parliamentary officials that accompanied the delegation are: Mr. L Nodada (Committee Secretary), Mr. M Mkhize (Content Advisor), Mr. M Tau (Researcher), and Mr. V Makubalo (Committee Assistant).
1.2 Terms of reference The visit formed part of the Committee’s ongoing interaction with municipalities to monitor collaboration and coordination pertaining to the provision of municipal services and support given to municipalities by provincial and national departments. The municipalities in Northern Cape that were identified for the visit are: Sol Plaatje Municipality, Renosterberg Municipality; Siyancuma District Municipality; Thembelihle Municipality; Kgatelopele Municipality; Dikgatlong Municipality; Siyathemba Municipality; Phokwane Municipality; Emthanjeni Municipality; Richtersveld Municipality, Kamiesberg Municipality; Karoo Hoogland Municipality, Siyanda Municipality and Mier Municipality. The Renosterberg Local Municipality could not attend the oversight meeting and no apology nor reasons for inability to attend were provided to Parliament.
The stakeholders (including national and provincial departments) that accompanied the Committee on this visit are: National Department of Cooperative Governance and Traditional Affairs, Northern Cape’s Provincial Treasury, South African Local Government Association, Provincial Department of Energy, Financial and Fiscal Commission, Provincial Department of Cooperative Governance, Human Settlements and Traditional Affairs, National Department of Water and Environmental Affairs, National Treasury, Auditor General, Development Bank of Southern Africa, and ESKOM.
1.3 Purpose of the Visit The purpose of the oversight visit was to engage with the above-mentioned municipalities along with national and provincial departments on the following areas: • Development and implementation of municipal budgets; • Municipalities’ compliance with the Municipal Finance Management Act, Number 56 of 2003; • The spending and performance of the municipalities with regards to conditional grants; • The municipalities’ relations and collaboration with various national and provincial departments and entities; • Capacity constraints of the municipalities (if any); • The extent to which municipal services are provided; and • The alignment of municipalities’ Integrated Development Programmes with the Provincial Growth and Development Strategy.
- Auditor General’s overall presentation on identified Municipalities
The Office of the Auditor General (AG) briefed the Committee on the 2008-09 audit outcomes of the selected municipalities in Northern Cape. The AG reported that the audit opinions of 11 municipalities, who received a disclaimer in the previous financial year, did not change. These municipalities include: Sol Plaatje Municipality; Siyancuma Municipality; Thembelihle Municipality; Kgatelopele Municipality; Dikgatlong Municipality; Siyathemba Municipality; Emthanjeni Municipality; Kamiesberg Municipality; Karoo Hoogland Municipality, Siyanda Municipality and Mier Municipality.
The AG informed the Committees that municipalities were expected to submit their financial statements on 31 March 2010. However, the AG informed the Committees that Phokwane and Renosterberg Local Municipalities did not submit their financial statements. In the prior year, Phokwane Local Municipality also submitted their financial statement after the legislated deadline. The late submission of Phokwane’s audit financial statement (AFS) was due to the absence of the CFO without the acting chief financial officers (CFO), accounting difficulties were experienced and the late appointment of a consultant to compile the financial statement further contributed to late submission of financial statements.
The AG informed the Committees that, in July 2008, Renosterberg Local Municipality changed to a new financial accounting system called the General Recognized Accounting Practices (GRAP). However, due to unforeseen reasons, the implementation of GRAP was not completed by 30 June 2009 –that is a year later. The AG further informed the Committees that by the end of November 2009, the municipality, through a third party, was still expected to perform the following activities: balancing of cashbook, bank reconciliation, debtors’ reconciliation and clearing of suspense accounts.
The Committees were told by AG that from the 11 municipalities that received disclaimers it is evident that chief financial officers (CFOs) have not implemented basic accounting practices. AG explained that disclaimer of opinions are expressed when the effect of the limitation is pervasive to the financial statements as a whole. The AG added that this implies that the majority of financial statement items did not pass the test. The AG informed the Committee that only 1 municipality, Richtersveld Municipality, from those visited, had a financially unqualified audit opinion due to the effective use of consultants, and no municipality attained a clean audit opinion.
The AG outlined the following as the main contributing factors to the negative audit outcomes: • Failure by the CFOs to ensure adherence to basic accounting disciplines at most municipalities; • Lack of Proper Document Management Systems resulting in municipalities not being able to provide documents to support transactions processed in their accounting record; • Ineffective utilization and management of consultants. 11 of the 11 municipalities with disclaimer of opinion used consultants during 2008/09 for day to day accounting functions and/or to compile annual financial statements; • Lack of effective monitoring of the implementation of action plans to address prior year findings. This is largely due to municipalities not having effective internal audit and audit committee structures capable of monitoring management’s (Municipal Managers, CFOs and Financial Managers) implementation of action plans and reporting to those charged with governance (Mayors and Councils) progress, highlighting red flags where necessary; and • There was a lack of technical support from Provincial Treasury and the Department of Cooperative Governance and Traditional Affairs (COGTA) due to capacity constraints and skills shortage.
The Auditor-General reported that the drivers to improve audit outcomes are leadership monitoring and oversight, financial management, and effective governance structure. With respect to monitoring and oversight, the Committees were told by the AG that adequate leadership involvement and oversight must set the right tone from the top and create an environment conducive to good financial management and service delivery.
On financial management, the AG proposed that the leadership should consider applying section 171 of the Municipal Financial Management Act, Number 56 of 2003 (MFMA). This section provides disciplinary proceedings in case of financial misconduct by municipal officials. The AG stated that the CFOs need to ensure that basic accounting principles are implemented at each municipality in order to mitigate the high incidence of disclaimer of opinion and qualified opinions and improve basic financial management within municipalities. The AG highlighted a critical process of preparing monthly trial balances and validating the information included in the trial balance to supporting documentation and supporting schedules. The AG argued that this monthly process must be supported by the daily and weekly review processes inclusive of confirming the correct application of the relevant accounting policies. The AG explained that performing and reviewing the required reconciliations (such as bank, debtors, asset and creditors reconciliations) and relating this information to the capital and current budget as approved by council is crucial. The AG reported to the Committees that decisive leadership intervention is required to ensure proper record keeping and records management, namely: the documents that are supporting the financial statements must be properly filed and easily retrievable –that is perpetuating the culture of accountability.
With respect to the effectiveness of governance structure, namely: internal audit and audit committees, the AG reported that seven of the eleven municipalities did not have an audit committee in operation throughout the year and six of the eleven municipalities did not have an internal audit function throughout the year. Six audit committees did not operate in terms of written terms of reference and eleven audit committees did not substantially fulfill their responsibilities as provided in section 166 of the MFMA. Six internal audit units did not operate in accordance with an approved internal audit plan and ten internal audit units did not substantially fulfill their responsibilities as per section 166 of the MFMA. The AG stated that the effectiveness of internal audit was negatively affected by capacity constraints and inadequate scope of work. Moreover, the AG proposed that risk assessments should be conducted and fraud prevention plans or plans mitigating risks should be designed, implemented and monitored on an ongoing basis. The AG advised that internal audit should include responsibilities to assist with providing assurance in the financial statement and other reporting processes to those charged with governance.
The AG reported to the Committees that all municipalities have been engaged including Phokwane Municipality, and Renosterberg Municipality. The AG commented that Phokwane Municipality does not have a CFO and relied on consultants to do day to day financial management. The AG reported that, Renosterberg Municipality has changed its accounting system and has a CFO but basic financial management systems are not adhered to. Both municipalities have been sensitized by their lack of adherence to section 126 and section 136 of the MFMA. The Committees were told by the AG that small municipalities rely on consultants. Furthermore, the AG added that it depends on the degree of the use of consultants but in most cases the municipalities that use consultants at a lesser extent are the ones that show some signs of improvements.
The AG reported that there is lack of cooperation between Provincial Treasury, Standing Committee on Public Accounts, Department of Cooperative Governance and Traditional Affairs, and Auditor General to assist municipalities as a result there is an element of overlapping on services provided to municipalities.
- Municipal Performances and Analysis
- The Sol Plaatje Local Municipality The Sol Plaatje Local Municipality (SPLM) reported that it has received funding from National and Provincial governments as well as from the Frances Baard District Municipality. Most of these receipts are conditional as indicated in Division of Revenue Act (DoRA) and the provincial and district grants are project-proposal-based. The SPLM informed the Committees that the bulk of the grant received from the district municipality was set aside for the rehabilitation of the wastewater treatment works. Other projects that the SPLM reported on involved streetlights and high mast lights installation; sanitation reticulation infrastructure, and paving of streets.
The SPLM presented that the mid-year adjustments were confirmed in January 2010 which the SPLM will spend by June 2010. The SPLM said that the available funds would be spent on upgrading of streets; revamping of business centers and maintenance of parks in Galeshewe. The SPLM added that feasibility studies have been completed. For example, more than 21 feasible projects have been identified. But no funds for these projects have been transferred to the SPLM.
With respect to intergovernmental relations and collaboration, the SPLM informed the Committees that it is part of Frances Baard Intergovernmental Forum. Furthermore, the SPLM reported that the Executive Mayor and Municipal Manager attended Integrated Development Plan (IDP) District Steering Committee which is comprised of 4 local municipalities and Provincial IDP Coordinator. The Steering Committee meet once per quarter to align processes and plans. The SPLM informed the Committees that it is part of the annual IDP engagement event with provincial sector departments which will be in April/May in 2010.
However, the SPLM said that challenges in IDP alignment and collaboration still exist but this issue is being addressed. On their side, the Mayor and Municipal Manager attended the 5-year Provincial Strategic Planning Forum and the Premier’s Inter-Governmental Relations Forum which meets every quarter. The SPM reported that there is little direct participation by sector departments in IDP. The Committees were told that, after the IDP Engagement event, there is little follow-up until the next event except when Members of Executive Council (MECs) comment on draft IDP on the ccommitments made by Provincial Sector Departments (namely, Department of Tourism, Department of Water and Environment Affairs, and Department of Cooperative Government and Traditional Affairs). The SPM said that there is sufficient participation by public entities and others on an ad-hoc basis in terms of IDP.
The SPLM reported that a lot of issues are being addressed in the so-called Municipal Turnaround Strategy. These include: stabilising the finances and administration of the SPM; producing a ‘credible’ IDP informing the budget; signing of performance agreements by the Municipal Manager and other section 57 (of the Local Government: Municipal Systems Act) managers; implementing Operation Clean Audit Report (OPCAR) which will include a detailed action plan to address AG’s queries; and development of a Municipal Infrastructure Investment Framework. According to the SPLM, Municipal Infrastructure Investment Framework includes infrastructure-led growth, bulk infrastructure capacity replace, refurbish and maintain ageing infrastructure, and municipal fleet enhancement). Furthermore, the SPLM reported that it aspires to enhance service delivery through the improvement of public consultation process by providing free basic services and better indigent management.
The SPLM added that the issues that are being addressed in the Municipal Turnaround Strategy include: accreditation of housing delivery agent; draft Integrated Human Settlement Plan to guide housing delivery; building a strong well-managed and performance-oriented institution; and integrated communication strategy which will strengthen internal and external communication channels, public participation and ward/community-based planning, development and monitoring system.
The Sol Plaatje Local Municipality reported that it is a high capacity municipality and is expected to comply with both Municipal Finance Management Act (MFMA) and Accounting Reporting Standards. Within the SPLM, an MFMA Implementation Plan has been developed and this plan focuses both on compliance issues and directorates with an aim to ensure that respective directorates take responsibility and accountability in as far as compliance is concerned. The SPLM added that asset management regulations have been presented to management and steering committees as required.
The SPLM acknowledged that it is struggling to meet deadlines with regards to annual report submissions. The SPLM revealed that it is struggling to comply with included certain reporting requirements in terms of MFMA including compliance with supply chain regulations and policy, General Recognized Accounting Practices (GRAP) compliance, GRAP 16 Investment Property, GRAP 17, Property Plant and Equipment (PPE), GRAP 102 Intangible Assets, and International Accounting Standard 19 (IAS 19) Employee Benefits. However, the SPLM reported that corrective actions have been put in place and are being monitored on a monthly basis.
The SPLM reported that supply chain management policies have been reviewed and procedure manuals were developed to give guidance in terms of implementation and execution of these policies. In addition, an organizational structure for the supply chain management unit has been reviewed to further support the implementation of the policies and procedures -ensuring compliance with policies. Furthermore, it was reported to the Committees that supply chain management procurement function has been centralized –as the decentralized approach did not produce the intended results. The SPLM added that the training of all supply chain management personnel will be facilitated by the Northern Cape’s Provincial Treasury and the Development Bank of Southern Africa (DBSA). These trainers shall capacitate municipal bid committees as well. The SPLM explained that this is aimed at improving the functionality of both staff and committees, and improve reliability by both internal and external stakeholders. The SPLM added that the terms of reference for each committee will be drafted and the SPLM will encourage continuous training and development of personnel in the supply chain management units and others.
The Sol Plaatje Local Municipality reported that it submits its section 71 (of MFMA) reports to National Treasury Database (called lgdatabase) by the tenth of each month. But problems are experienced whereby reports are uploaded onto the database and confirmation reports are received, but the system shows that reports are outstanding. The SPLM said the same reports submitted are forwarded to the Northern Cape’s Provincial Treasury, MFMA Compliance Directorate and Frances Baard District Municipality.
The SPLM reported that the internal audit committee was established in 1999 prior to the promulgation of the MFMA. The reporting is done directly to the Municipal Manager and to the Audit Committee. Audits are done in accordance with a risk-based plan approved by the Audit Committee. The SPLM said that the internal audit reports to the Audit Committee on a quarterly basis and internal audit committee assists management with the facilitation of risk assessments.
The Committees were told by the Sol Plaatje Local Municipality that, in May 2008, the SPLM’s Council appointed an audit committee which comprises of three qualified and experienced independent members. The SPLM said that the audit committee performs its duties in line with the approved auditing charter. The audit committee’s meetings are held on a quarterly basis and, if necessary, on special requests. The audit committee reports to the Council on a quarterly basis. The SPLM reported that the annual report for 2009 has been tabled to their Council. Auditor-General has commented on the standard of the financial statements and the audit report is included in the annual report. The SPLM added that the process of Oversight Committee on Annual Report has started and recommendations to Council by this committee are expected to take place by no later than 31 March 2010.
With respect to the performance in service delivery, the SPLM reported that the Council resolved that one standard of service (full services) will be provided to all residents. This intends to address the present backlogs (households) in basic services such as water (estimated at 1 215 formal households and 8 400 informal households); sanitation (estimated at 5 645 formal households and 8 400 informal households); electricity (estimated at 7 686 households); and housing (estimated at 13 908 households). The SPLM reported that serious financial constraints exist with regard to the provision of bulk infrastructure (mainly sewer outfall works), replace, refurbish and maintaining ageing infrastructure and to create productive new infrastructure.
The Sol Plaatje Local Municipality (SPLM) informed the Committees that it has a process of identifying qualifying indigents. The SPLM reported that verified indigents are subsidized for free basic services such as water (that is 12 kilolitres per month); electricity (that is 50 kilowatts); refuse removal once a week; and sanitation. The SPLM further reported that a budget of R20 million was set aside for 2009/2010 for free basic services and R7 million was spent as at 31 January 2010. A total of 8 900 indigents were verified versus a target of 16 000 in the 2010/11 financial year. Furthermore, the SPLM reported that the indigent policy is being reviewed. However, a new approach to identify indigents is being implemented which is similar to ‘best practice’ investigation by other municipalities.
The SPLM reported that it has some financial constraints caused partly by its revenue-generating activities. For example, there are low payments for services rendered to government departments, and there are high levels of poverty. Other areas of concerns are cost and management accounting, financial accounting, bid committees, performance measures, project management, and resource management to ensure efficiency. The SPLM added that there is an increasing demand for infrastructure maintenance (due to ageing infrastructure) and maintenance costs are escalating. The SPLM reported that skills shortage is prominent mainly in scarce skills like engineering and artisans. The Sol Plaatje Local Municipality (SPLM) reported that it practices multi- year budgeting including capital budgets. The budget process is aimed at involving the Councillors and the community at early stages of both budget and IDP processes. Budget and IDP timetables are tabled to the Council by August each year and performance is reviewed monthly to monitor progress and compliance. The SPLM added that the 2008/2009 financial year was a challenging period for most municipalities in South Africa due to the economic recession which led to job cuts and other difficulties. The SPLM informed the Committees that it was affected by this economic meltdown whereby their debt collection rate were declining, reserves were diminishing and cash-flow was tremendously under pressure to a point where re-prioritization of payments inevitable. However, the SPLM reported that they maintained their bills payment within 30 days as per policy.
The Committees were told by the SPLM that employee-related costs are 35.74 per cent of the total operating budget, maintenance is 5.46 per cent of the total operating budget. The SPLM reported that the capital programme is financed as follows: own funds amount to 11.22 per cent; borrowed funds amount to 7.89 per cent and grants amounts to 80.89 per cent.
3.2 The Siyancuma Local Municipality The Siyancuma Local Municipality (SLM) reported that it did not have a Chief Financial Officer (CFO) and they rely on the accountant to deal with the day-to-day issues in financial management. The SLM said that the absence of the CFO has negatively affected them. The SLM further reported that the CFO will be appointed in the near future. At the SLM, salaries amount to 46 per cent of the total operating costs but when the Council’s salaries are added, this figure goes up to 56 per cent of the total operating costs.
The SLM reported that it received an equitable share (ES) of R20 million and currently it is owed R23 million by sector departments and the community for services rendered. Capital grant is the major source of income for the SLM. The Committees were informed that the revenue collection is a challenge for the SLM because people do not afford to pay for the services that the SLM has rendered. The SLM added that its fleet of vehicles is old and they have two tractors only. The SLM is struggling in terms of administrative issues and the asset registers, and the Municipal Manager is attending to these issues.
With respect to intergovernmental relations, the SLM reported that participation by stakeholders in Integrated Development Plans (IDPs) is at an acceptable level. The IDP monitoring unit of the Department of Cooperative Governance and Traditional Affairs (COGTA) participates and advises on the IDP. Inputs are made by all other sector departments who are involved in the IDP process but there are some challenges with respect to the attendance of meetings and submission of inputs. The SLM said that other participants include Eskom, South African Local Government Association, provincial departments and community members.
The SLM reported that it is trying its best to deliver services to the people including building houses which is one of the key functions of the province. The SLM reported that Eskom has electrified all the houses. Under the Expanded Public Works Programme, two access roads were targeted for upgrading.
The SLM informed the Committees that Development Bank of Southern Africa has deployed a technical expect to assist within the municipality under the Siyenza Manje programme and, other programmes within the municipality are benefiting.
It was reported to the Committees that the IDP of the SLM is currently under review and all efforts will be made to align it to the Provincial Growth Development Strategy (PGDS). Furthermore, the SLM reported that it intends to convene a strategic management session in order to discuss strategic issues. The SLM said that it has started with a process of developing a municipal turnaround strategy. The first thing targeted in the turnaround strategy is the sound financial management within the SLM. Towards this sound financial management, the SLM reported that an effective system of expenditure control has been implemented.
The SLM assured the Committees that it strives to abide by the MFMA and comply with procurement procedures. The SLM told the Committees that a request was made to the Northern Cape’s Provincial Treasury to train management on financial management issues which included establishing financial management unit, asset management, and accounting systems. In addition, the SLM and its Council held workshops with the Auditor-General on how to manage financial resources.
The SLM reported that it tries hard to comply with all the existing legislations. In compliance with the MFMA, the SLM said that the drafting of the supply chain management policy is underway. The SLM reported that it has an adjudication committee which enforces and advises on procurement procedures and awarding of contracts by the SLM. The SLM informed the Committees that a bid committee has been established and it comprises of senior municipal officials. The SLM reported that the budget and treasury office (BTO) and budget committee do not exist and, instead, the CFO is responsible for the budgetary and treasury function. The SLM said it utilizes municipal shared services in the district municipality.
The SLM reported that an internal audit and audit committee are yet to be established. The Committees were informed that, for functions of internal audit and audit committee, the SLM makes use of municipal share services’ internal audit and the district municipality assist on a quarterly basis. The SLM reported that, although is does not have an AC, it shares such function with the district municipality and intends to establish one in the near future.
The Siyancuma Local Municipality reported that annual financial statements were submitted on time to the AG’s office. The SLM reported that it has just started presenting an annual report to its Council. The SLM said that submissions of section 71 (of MFMA) reports are done in time. The SLM informed the Committees that the annual report was compiled and tabled before the Council on 23 February 2010 and its Council has adopted it.
With respect to service delivery and capacity constraints, the SLM reported that the process of providing services (such as water, electrification, sanitation, development of infrastructure and so forth) to the people is on track. The SLM said that it does not have adequate fleet to deliver services faster. However, the SLM said that it is maintaining an acceptable service level. The SLM reported that the government subsidy is spent on addressing some of the electricity challenges. The SLM said that the subsidy is not enough to provide electrification costs per connection and the SLM partly pays for electrification costs. The SLM added that it still has some electricity backlogs, a total of 2 220 households need to be electrified. The SLM relies on Eskom for electrification.
The SLM said that it has budgeted for replacing its ageing infrastructure. Municipal Infrastructure Grant (MIG) funding will be utilized to address this challenge. The SLM reported that MIG funding is R10 million but it requested R44.7 million for 2010/11 financial year. Therefore, this means that it is going to delay some of its old infrastructure replacements.
The SLM reported that its roads are mostly gravel because the SLM is vastly rural. The upgrading of access roads which was done in 2009 covered 800 kilometers at an estimated cost of R4.3 million. The SLM informed the Committees that it is struggling to finance new projects in road infrastructure.
With respect to housing, the SLM reported that a sum of R2.4 million has been allocated for town planning and a process of building 100 houses has started in Smithdrift.
3.3 Thembelihle Local Municipality The Thembelihle Local Municipality (TLM) reported that most of its targets have been reached and that the number indigents is high and it is putting pressure on the Local Government Equitable Share.
The Committees were told that participation by sector departments in the IDP processes remains a challenge. The TLM reported that sector departments usually do not attend IDP Representative Forums or, if they attend, they send junior officials who are unable to make valuable contributions. The Committees were informed that commitments to IDP are often received late and does not compliment smooth planning processes. The TLM added that it has good relationships with both DBSA and ESKOM and that Eskom’s Service Level Agreement will be reviewed to address revenue enhancement strategy.
The Committees were told that the IDP of the Thembelihle Local Municipality is aligned to PGDS. The Provincial Departments of Safety and Liaison and Environmental Affairs are honouring their commitments to the IDP.
The TLM reported that the Council adopted the supply chain management policy on 11 May 2007. The TLM assured the Committees that all bid committees are in place and active. The TLM added that a training programme is being developed for all relevant staff members. The SCM unit of Northern Cape’s Provincial Treasury is currently working on a training programme.
The TLM reported that a full compliment of staff is needed for the budget and treasury office (BTO) but as of now it is not met. Although the work is being done, the lack of capacity and skill is evident. The BTO is headed by a CFO, who was appointed on 01 January 2008. The TLM told the Committees that, in February 2009, the Accountant went on pension and the Budget and Expenditure Officer is an acting Accountant. The TLM added that there are three interns of which one resigned after just two months of internship. Therefore, there is severe pressure on the few staff in the Finance Directorate who is expected to perform at their peak as well as trying to comply with MFMA regulations.
The Committees were told by the TLM that the annual financial statements for 2008/09 financial year have been submitted one month late due to the late submission of quotations by service providers. The lack of staff had hampered the possibilities of the CFO compiling the audited financial statement on time. The TLM reported that all section 71 (of the MFMA) reports get submitted on a monthly basis to the relevant treasury offices. The TLM told the Committees that it makes use of the Shared Services Unit of the district municipality for both the internal audit as well as the audit committee. The TLM emphasised that both of these committees are active and functional. The TLM reported that its Council adopted the annual report for the 2008/9 financial year on Thursday, 28 January 2010. The annual report gives a broad overview of the functionality and performances of the municipality over the previous year. It covers the financial, corporate service, technical services as well as executive administration of the TLM.
With respect to service delivery and capacity constraints, the TLM reported that the Star station, which provides electricity, needs to be upgraded at a cost of R20 million. This urgent upgrading is needed to improve capacity from 1.8 Mva to 3 Mva since the current station is running at over- capacity. The TLM added that its network is in a fair condition after some refurbishments, although it needs full upgrading due to the age of the network.
The TLM told the Committees that it took a R3.6 million loan from Development Bank of Southern Africa (DBSA) to finance strategic projects of the TLM. Furthermore, the TLM reported that it needs to secure R 1.5 million surety with Eskom.
The TLM reported that the capacity of water treatment plant is small to purify enough water for the growing community. Currently, the plant is over- utilised. A municipal infrastructure grant (MIG) application was submitted to National Treasury for an amount of R12 million for the supply of bulk water to Steynville area including a bulk line, lifted water tower, reservoir and reticulation system. Another application for R2 million was made for the River pump station upgrading. The TLM reported that it extracts polluted water where the pumps are situated, and that increases its running costs of purification. The TLM reported that the water treatment system’s upgrading was registered under the Pixley ka Seme Bulk Water Scheme (scheme 5). The TLM added that the Implementation Readiness Plan was registered and approved by the Department of Water and Environmental Affairs (DoWEA) for R37 million. The Committees were told that the reticulation networks are dating back to 1950’s and is of poor condition. Water pipes made of asbestos burst daily, and it is a costly exercise since asbestos is no longer available on the market. The TLM said that Strydenburg has a big water problem due to the Abattoir in that area and that boreholes are being explored as one of the solutions to water challenges. The TLM added that Strydenburg is included in the Bulk Water Supply Scheme to get water via a pipeline from Hopetown to town.
The TLM reported that it is currently constructing a 7 pond oxidation system, to provide needy communities with sanitation. The TLM further reported that the dam is being built at a cost of R11 million with MIG funds and the old dams are overflowing, but precaution measures are in place to prevent water wastage. The TLM expects the water project to be completed by June 2010. The Strydenburg area has a 5 pond system in place for 2 years and is in a good condition.
The TLM reported that VIP toilets and septic tanks are a big challenge because they are not maintained by the owner. It was reported to the Committees that a new Solid Waste Site was established at the end of 2009 and that the old site will be closed down and rehabilitated. The TLM told the Committees that Strydenburg needs to upgrade its waste site in accordance with the IDP.
The TLM reported that their roads are in a bad state as a result of poor funding. Although an MIG application was tabled by the TLM, MIG funds do not fund the upgrading of infrastructure. Business plans were presented to the Department of Roads, but only money for the previous disadvantaged area was allocated. Business plans will be presented to the Expanded Public Works Programme as well. The TLM added that its motor vehicles are in a bad shape. The Municipality added that a loan of R1.8 million was taken from DBSA to replace critical vehicles. Most needed vehicles are trucks, tractors and graders. Currently, the TLM cannot afford to buy them due to budget constraints.
The TLM reported that growth in the budget is influenced by the yearly increases in the normal tariffs, such as services (sewerage, refuse, etc.) as well as water supply. Electricity tariff increases is normally determined by the Nersa and communicated to the municipality by National Treasury.
The TLM reported that salaries, on average, amount to R812 749 per month, excluding the bonus month of December. This equals to 4.77 per cent of total expenditure (including capital expenditure financed through conditional grants). In comparison with own revenue of R5 765 340, the percentage of personnel expenditure is 84.58 per cent.
3.4 Kgatelopele Local Municipality The Kgatelopele Local Municipality (KLM) reported that the following projects have been completed during the previous financial years: valuation roll, training of Councillors’ and officials, appointment of interns to assist the finance department, and conversion from Institute of Municipal Finance Officers (IMFO) to Generally Recognised Accounting Principles systems. Through Municipal Systems Improvement Grant (MSIG), the KLM reported that it implemented a new financial system, new pre-paid system, leave system and an archive system.
The KLM reported that there is a good relationship with Eskom as regular meetings and visit takes place between Eskom and the KLM. The KLM further reported that regular meetings are also held with DBSA who issued a R1.8 million loan to the KLM to acquire new vehicles. The KLM reported that DBSA has seconded an expert to the KLM to assist with financial matters regarding the MFMA. Currently, the seconded official assists the KLM three days per week.
The KLM reported that regular meetings take place with the local SAPS and the Council is represented in the forum. The Department of Health, through the local clinic, does participate on the IDPs. The KLM added that the Department of Social Services has a local office and regular communications between the office and the Council takes place. The KLM reported that it hold quarterly meetings together with the Department of Cooperative Governance and Traditional Affairs regarding the housing projects and the future development of erven. The KLM added that the Department of Environment and Tourism assists within various issues like the National Water Week, Earth-Hour and Climate change. On the other hand, the Department of Justice has just built a new court for Danielskuil. Furthermore, the KLM reported that the Department of Sports, Arts and Culture has started with the first phase of extension of library. However, the KLM added that sector departments are invited to the IDP meetings but not all of them attend, some send junior officials who can not take serious decisions. Participation of sector departments takes place once a year when the IDPs of municipalities are assessed by sector departments. The KLM reported that, to give effect to the development vision and development objectives, its IDP is aligned to the Provincial Growth and Development Strategy (PGDS) which is derived from the millennium development goals.
The KLM reported that the supply chain policy has been approved by the Council and it complies with National Treasury regulations. The KLM added that the financial policies will be reviewed after the approval of the annual budget. The KLM told the Committees that there was no functional supply chain management unit in the KLM until January 2010. The KLM further reported that a supply chain official has been appointed and training of this official has been facilitated by one of the mining houses in Kgatelopele. The KLM assured the Committees that a bid committee has been established and is functional.
The Kgatelopele Local Municipality reported to the Committees that it does not have a budget and treasury office (BTO). However, an advertisement has been placed in the newspapers for a BTO’s official. The additional cost to appoint the BTO’s official has been approved by the Council. The KLM added that it has appointed an internal auditor. However, this official is inexperienced and needs training. The KLM told the Committees that skilled audit committee members were head-hunted from the mining companies in KLM’s municipal area and the first audit committee meeting was held on the 4 February 2010.
The KLM told the Committees that it has submitted the financial statements to the AG on time. The KLM added that all the section 71 (of MFMA) reports have been submitted to Provincial and National Treasury. The KLM said that provincial treasury plays an important role in helping the Kgatelopele Local Municipality to complete section 71 of (MFMA) reports. The KLM added that it submitted its annual report to the Council on time and that the oversight committee will consider the annual report. At the end of March 2010, the oversight committee will make recommendations to the Council to approve or not to approve the annual report. The KLM further reported that an action plan to address the audit findings is included in the annual report.
With respect to service delivery and capacity constraints, the KLM reported that 11 566 households in the KLM have access to electricity; and 120 erven of the 287 erven developed received electricity in the 2009/10 financial year. The KLM added that the Council is experiencing high losses on water due to water pipes that burst because the network is old and has passed its life span. The KLM said that the Council cannot afford the high expenditure on repair and maintenance of these pipes and the projected cost to replace the water network will be R22 million.
The KLM informed the Committees that the Council experiences high expenditure on the maintenance of sewage pumps and that the oxidation ponds need to be upgraded. The KLM reported that the gravel roads in the residential areas are in a bad condition and the Council does not have the necessary equipment to maintain these roads. The KLM reported that the business plan for the EPWP fund was approved and will be implemented, starting from March 2010.
3.5 Dikgatlong Local Municipality The Dikgtlong Local Municipality (DLM) reported that, through a MIG, it has constructed roads and upgraded storm water in Windsorton and Proteahof, and water reticulation in Rooirand. The DLM added that it upgraded bulk water in Barkly West. The DLM further reported that it had prepared annual financial statements without using consultants for past four years. The DLM added that property valuations roll was completed and implemented. The DLM reported that a strategic planning and implementation session is done continuously. The DLM further reported that the FMG was utilised to train interns and other personnel on pre-paid electricity system and information technology upgrading to reduce expenses and cost.
The DLM reported that it has good relations with the Department of Water and Environmental Affairs and Sedibeng water. The DLM further reported that approximately R28 million for water is owed by the DLM and a meeting was held with the Department of Water and Environmental Affairs in Pretoria to address the payments terms. Furthermore, the DLM reported that it had owed Eskom a certain amount of money which was fully paid in January 2010. The DLM reported that it has raised the following three loans from the DBSA: an amount of R1 million for the upgrading of Electricity Network I; an amount of R2.1 million for the upgrading of Electricity Network II; and an amount of R2.6 million for the financing of vehicle fleet.
The DLM reported that its public participation is limited to local offices but regular meetings and information sessions are held at the provincial level. The DLM informed the Committees that Eskom and DBSA are always absent during the IDP process. The Committees were informed by the DLM that sector departments have implemented some projects in the local communities. These include still water reticulation; the establishment of a taxi rank; the pavement of sidewalks through the EPWP; the establishment of a new library in Barkly West by the Department of Arts and Culture; and the construction of a new hospital in Barkly West by the Department of Health.
The DLM assured the Committees that its IDP is aligned to the PGDS. To ensure compliance with the MFMA, the DLM reported that a supply chain management policy was approved by the Council as per SCM regulations. The DLM reported that a bid committee is in place and it is periodically evaluated by provincial treasury’s SCM unit. The DLM reported that it does not have a budget and treasury office and BTO’s functions are performed by its Chief Financial Officer. The DLM does not have an internal audit and audit committee and it uses shared services function with the district municipality.
The Dikgatlong Local Municipality (DLM) reported that its annual report for 2008/2009 was approved and submitted to AG, Francis Baard District Municipality and the National Department of Cooperative Governance and Traditional Affairs. The DLM reported that, for the previous three years, it had submitted its annual financial statements to AG on time. The DLM reported that it has not submitted its section 71 (of MFMA) reports since July 2009. Furthermore, the Dikgatlong Local Municipality reported that it has implemented a new E-Venus system to facilitate processing of its backlog in transaction execution.
The DLM reported that it has an inadequate and ageing fleet and that the high level of debt limits the ability of the DLM to acquire new vehicles or maintain existing ones. The Committees were told that new residential development put pressure on the current fleet and that hampers service delivery drastically. The DLM added that cash flow constraints hinder the application for loans to renew/expand the fleet. The DLM informed the Committees that three main towns and various rural areas (namely: Longlands, Gong-Gong, Smitsmine, Stillwater, Pniel, Holpan and Koopmansfontein) require many vehicles per area due to a larger distance amongst households.
With respect to the infrastructure, the Dikgatlong Local Municipality reported that the main road in Barkly West carry heavy traffic, Afrisam products are transported through this road and that damages this road. The DLM further reported that roads are deteriorating and streets in and around towns and rural townships are in a poor condition. Furthermore, the DLM reported that its tarred roads because there are no funds to reseal them. The DLM expressed their concerns that capital projects are introduced without a budget for repairs and maintenance costs. The DLM informed the Committees that there is lack of proper equipment to maintain infrastructure and that the DLM is under-staffed in the infrastructure department.
The DLM reported that many factors have negatively affected its budget. For example, capital projects are mostly in indigent areas and the income base is minimal; and salary increases negotiated by bargaining council and job evaluation implementation constituted a large percentage of its budget. The DLM reported that its ageing infrastructure, equipment and fleet are expensive to maintain. The recession and inflation resulted in higher maintenance of these capital projects. The Dikgatlong Local Municipality reported that incorrect allocation of the equitable share due to outdated population figures hampers the development of rural areas and indigent communities like Holpan, Stillwater and Longlands.
The Dikgatlong Local Municipality (DLM) added that, although it has a small budget, there are capital projects that it had managed to implement in the past and these projects include: the construction of streets and storm water in Proteahof (its second phase); the upgrading of roads and storm water at Windsorton; water reticulation network (in 228 sites) at Rooirand; the upgrading of bulk water supply at Barkly West; the landfill sites feasibility studies for Holpan, Longlands and Stillwater were conducted; the water reticulation (in 50 sites) at Barkly West Town; and electrification of the Spitskopsweg Housing Project and Longlands.
The DLM reported that its budget expenditure is as follow: operational grant dependency is 43 per cent; capital grant dependency is 100 per cent; debt collection as at 30 June 2009 is 49 per cent; and salaries as a percentage of the total operating budget is 41 per cent (including 3 per cent attributable to the Councillors).
3.6 Siyathemba Local Municipality
The Siyathemba Local Municipality (STLM) reported that ESKOM supplies electricity in Prieska, Marydale and Niekershoop areas and that electricity accounts are paid on a monthly basis. The STLM reported that the DBSA gave them a R3.5 million loan and it was repay in full. The STLM reported that it has good relations with the Department of Public Works regarding the construction of access roads. The STLM reported that the Department of Water and Environmental Affairs assisted it with the maintenance of water systems.
The Siyathemba Local Municipality added that cooperation from sector departments in the IDP process could be enhanced because there is no full involvement and/or commitment from certain sector departments. The STLM reported that, to ensure that its IDP is aligned to the PGDS, it uses the button–up consultation approach. The STLM added that the formulation of the objectives of the IDP is based on the priorities of the national government.
In compliance with the MFMA, the STLM reported that it has a fully functioning supply chain management unit with a sound supply chain policy which was approved by the Council. In addition, the STLM reported that it has three bid committees, namely: the Specification Committee, the Evaluation Committee and the Adjudication Committee. The STLM reported that a budget and treasury office (BTO) was established in October 2008 and the BTO office is functional.
The Committees were informed that the annual financial statements are submitted on time to AG for audit purposes. However, the STLM has received a disclaimer audit opinion for the 2008/09 financial year. The STLM said that it has received a disclaimer audit opinion as a result of the conversion from IMFO to GRAP.
With respect to the establishment and functionality of internal audits and audit committee, the STLM reported that it uses a shared services function of Pixley Ka Seme District Municipality for internal audit since only an audit committee was established. The STLM informed the Committees that the annual report was approved by the Council.
The STLM reported that there are service delivery and capacity constraints. For example, water management and maintenance is a challenge since there is no knowledge of water pipe system in Marydale. The STLM further reported that the pipe system, bore holes and reservoirs are in a poor state and, in Prieska, there are no yard connections because it is an informal settlement. Furthermore, the STLM reported that, in Marydale, 20 VIP toilets structures collapsed due to soil erosion, and regrettably 85 formal and 35 informal households are still using the bucket systems.
The Committees were told by the STLM that it requires 6 high mast lights and it needs to upgrade two areas in order to supply them with electricity. The STLM reported that it is struggling to conduct refuse removal and solid waste disposal although it purchased a compactor machine and appointed a contractor to do the earth works. Furthermore, the STLM reported that they have two access and maintenance of roads projects. In addition, the STLM reported that formalization of informal settlements in Marydale is on track but only 19 of 43 (44 per cent of) houses are incomplete.
The Siyathemba Local Municipality reported that a total number of 2 075 indigents have been registered in Prieska (with 1 508 individuals); in Marydale (with 339 individuals); and Niekerkshoop (with 228 individuals) and are being subsidized as follows: R40.00 per month for electricity; R60.80 per month for water; R80.95 per month for sanitation; R57.25 per month for suigtenk; R22.80 per month for VIP and so forth.
The STLM reported that its budget performance has been affected by the increase in the Eskom tariff which has led to an increase in sales of electricity. The STLM further reported that water sales were increased and that other sales for services provided have increased as well. The STLM informed the Committees that their capital budget amounts to R6.3 million of which R4.3 million will be spent on road; and the remainder of R2 million will be spent on high mask lighting. The STLM explained that capital expenditure is funded by the MIG. The STLM reported that the operational grant dependency is 27.63 per cent, capital grants dependency is 100 per cent, and salaries as a percentage of the total operating budget is 42 per cent. Furthermore, the STLM reported that repair and maintenance expenditure budget amounted to R2.6 million.
3.7 Phokwane Local Municipality The Phokwane Local Municipality (PLM) reported that it has insufficient number of machinery and equipments; its bulk infrastructure is ageing; it finds it difficult to retain and attract skilled technical and financial personnel; its road infrastructure requires maintenance and development; the provision of services to rural farm dwellers is challenging; the provision of recreational facilities is a challenge due to lack of funds; there is slow delivery of houses due to insufficient funding. The PLM reported that, due to policy contradictions, it is difficult to electrify all households and that Eskom electrification approach and local economic development is an ongoing challenge due to lack of sustainable employment.
The Committees were of the view that the PLM’s presentation was poor and inadequate. The PLM was advised by the Committees to rework their presentation and reappear before the Committees in Parliament in the near future.
3.8 Emthanjeni Local Municipality The Emthanjeni Local Municipality (ELM) reported that its action plan has been drafted and tabled before the Council, but the action plan was not adopted because the Council felt that it lacked certain specifications.
The Emthanjeni Local Municipality informed the Committees that many households owe it money for services provided and it is difficult to collect revenue from these households. The ELM reported that it has insufficient funds to spend on new projects.
The Emthanjeni Local Municipality (ELM) admitted that its Integrated Development Plan (IDP) was not credible owing to insufficient public participation hence the Council did not approve it. In order to address that challenge, the ELM said that it captured all the outstanding information but the plan is yet to be considered by the Council. Furthermore, the ELM reported that it did not have sufficient funds to provide water to all households.
The ELM admitted that the annual report has not been submitted to the AG. The ELM said that the Generally Recognized Accounting Practice (GRAP) has certain basic accounting principles that should be adhered to and the ELM is of the opinion that best way is to start working on GRAP’s principles is at the beginning of the financial year. On behalf of the ELM, the Chief Financial Officer reported that the financial statement will be converted to the GRAP system and that is in accordance with the direction that low- capacity municipalities should, at least, convert from IMFO to GRAP in the 2010/11 financial year.
The Emthanjeni Local Municipality reported that it has a R50 million which was written off and this was approved by the Council. The ELM informed the Committees that the South African Lotto company will give them R9 million and the ELM plans to use this donation for improving services to local communities. The ELM admitted that it has huge service delivery backlogs; some of which were inherited from the past. The ELM reported that the donation from the South African Lotto company will be used to address some of these backlogs since some households do not have water and electricity and it was difficult for the ELM to address these challenges due to insufficient funds.
The ELM reported that the sector departments that owe it money for services rendered on them include the Department of Public Works, the Department of Education and the Department of Health. The ELM further reported that these sector departments do not pay for municipal services on time. The ELM disclosed that 32 per cent of its total operating budget is for salaries, the share of the repair and maintenance costs is 6 per cent of the total operating budget. The ELM reported that debtors, who are on arrears, are allowed to pay the outstanding amount without an interest charge and this provision aims to encourage people to settle their overdue accounts.
The ELM reported that its proposed action plan aims to conduct verification of assets that could not be verified in the past, which is one of the priorities of the ELM. The ELM committed itself to the proper management of asset register, and proper management of supporting documents for internal use and audit purposes. The ELM acknowledged that it has failed to fully provide the above-mentioned activities in the past.
The ELM acknowledged that its annual report was submitted late to the AG. The ELM argued that poor bank reconciliations led to the delay of submission of the annual report to the AG. The ELM reported that it is working hard to improve on procurement processes. The ELM admitted that it is faced with a major challenge of attracting and, mainly retaining scarce skills personnel for sections like finance. The ELM reported that the Finance department has serious capacity constraints and this hampers service delivery.
Nevertheless, the ELM reported that it appreciates the initiative by the DBSA, through the Siyenza Manje programme, to supply them with experts in the field of finance and other technical areas. The ELM added that there are challenges with training sessions since they do not appear to be effective.
3.9 Richtersveld Local Municipality The Richtersveld Local Municipality (RLM) reported to the Committees that it received three grants from National Government, namely: Municipal Finance Management Grant (MFMG), Municipal Systems Improvement Grant (MSIG) and Municipal Infrastructure Grant (MIG) -including the MSIG roll-over amount of R142 685.
With respect to intergovernmental relations and relations with other institutions / entities such as Eskom and DBSA, the RLM reported that it regularly hold meetings with Eskom. The RLM reported that the DBSA, through the Siyenza Manje programme, has seconded the experts to the RLM to assist with infrastructure and/or technical services. The RLM further reported that it has employed a young professional in the finance department on two- year contract.
The Richtersveld Local Municipality reported that there are factors that had an effect on its economy. These are downscaling of mines leading to job losses. For example, De Beers company retrenched 300 workers last year.
The RLM reported that sector departments are involved in the IDP process. To support this claim, the RLM reported that a quarterly stakeholder meeting is held with sector departments, non-government organizations (NGOs), mine houses, ward committees and community development workers and that these are stakeholders that participate in the IDP review as well as budget processes. However, the RLM argued that it is of the view that the commitment that is shown by sector departments is inadequate and this challenge needs to be addressed.
The Richtersveld Local Municipality (RLM) reported that its IDP is aligned to the Provincial Growth and Development Strategy (PGDS). The RLM added that the Mari-Culture Park development is one of the projects that came from the PGDS. However, the RLM informed the Committees that this project is delayed by the fact that the RLM is awaiting additional funding from the national and provincial governments.
In compliance with the MFMA, the RLM reported that it does have a supply chain management policy which was implemented in April 2009. The RLM further reported that it has a credible asset register which was started in 2007 and completed in 2009. Furthermore, the RLM reported that it has a bid committee but establishing other committees is a challenge. The Richtersveld Local Municipality added that a budget and treasury office has been established but the CFO position is vacant. The RLM argued that, due to the resignation of the Chief Financial Officer, the 2008/09 financial statements was not submitted two months after the closing date. But, the section 71 (of the MFMA) reports were submitted to the Mayor, the Provincial and National Treasury. The RLM further reported that the annual report was approved by the Council.
With respect to the subject of establishment of the functional internal audit and audit committee, the RLM reported that it advertised for the establishment of an internal audit committee but without any success. The District Area Finance Forum (DAFF) is currently in the process of setting up terms of reference for a shared service Audit Committee in the Namakwa District Municipality.
With respect to the service delivery and capacity constraints, the RLM reported that the rural towns of the Richtersveld Local Municipality are supplied with electricity directly by Eskom. However, the RLM reported that the Eksteenfontein area is constantly experiencing electricity outages, even though the electricity station is upgraded. The RLM added that, in the Port Nolloth area, the electricity is supplied in bulk by Eskom to the town and directly to the Sizamile area, whose residents make use of prepaid meters. The RLM reported that, In the Port Nolloth area, there is low tension network and it needs upgrading or to be replaced.
The Richsterveld Local Municipality reported that refuse and/or waste in the Port Nolloth area is collected once a week using a compactor truck. The RLM argued that this truck is old and needs to be upgraded. In the rural towns, waste is collected in open trucks except for the Lekkersing area which has a roof-covered truck. The RLM informed the Committees that there are recycling operators operating from the Port Nolloth dumpsite. Furthermore, the RLM said that a waste management system has been set up for it in accordance with the white paper on Integrated Pollution and Waste Management for South Africa. The RLM added that an application has been made through the De Beers Social and Labour Plan for such a system to be put in place and for the improvement of the landfill site infrastructure.
The RLM reported that the road from Alexander Bay to Kuboes and Sanddrift, which is in a poor condition, is the main route to the Richtersveld National Park and that Trans Hex vehicles utilize it daily. The RLM argued that the tarring of the afore-mentioned road would be strategic for its road users. The RLM reported that, due to heavy rainfalls, the roads to Eksteenfontein, Lekkersing and Kuboes are in a poor condition in such the way that they are not usable. The RLM further reported that potholes in the Port Nolloth area are a huge challenge and roads have to be maintained on a regular basis but procuring tar from the company called Road Mix in Gauteng and that working with a company from Gauteng is very expensive. The Richtersveld Local Municipality further argued that the Pretoria Portland Cement (PPC) trucks which carry heavy loads to and from the neighbouring mines; and the Burger and Slabbert trucks that are transporting scrap materials from Oranjemund, damage the roads severely.
Regarding the budget performance, the RLM reported that the capital grants dependency is 100 per cent; the operation grant dependency is 22 per cent; revenue collection for rates and debtors is 76 per cent; salaries as a percentage of the total operating budget is 34 per cent; and repairs and maintenance costs is R720.508 out of a budget of R2.2 million. The Richsterveld Local Municipality reported that there are 1 045 indigent households registered in the the Richtersveld municipal area.
3.10 Kamiesberg Local Municipality The Kamiesberg Local Municipality (KLM) reported that the total amount of grants (namely, Financial Management Grant, Municipal Systems Improvement Grant and Municipal Infrastructure Grant) allocated to it as per Division of Revenue Act (DoRA) is R7.7 million and R4.2 million of this total amount has been received and the expenditure as at 04 March 2010 is R2.4 million. The KLM explained that the reason for variance on MIG is owing to administrative delays. The KLM promised to address this discrepancy by loading the information onto the system at Namaqua District Municipality.
The KLM reported that its achievements include the construction of the Multi-Purpose Resource Centre for Lepelsfontein which is more than 60 per cent complete. The KLM further reported that the buildings for new desalination plants are already built and equipped. On the FMG, the KLM reported that it has spent FMG on five interns who underwent training on regular basis. Out of the MSIG, the KLM said that it paid service providers for financial statements and for its recovery plan.
The Kamiesberg Local Municipality reported that the intergovernmental relations and relations with other institutions like public entities such as Eskom and DBSA are at an acceptable level. However, participation in the IDP process by sector departments, mainly the Department of Health and the Department of Education, is minimal. The Kamiesberg Local Municipality reported that the afore-mentioned sector departments are reluctant to participate in the IDP processes. The KLM reported that the DBSA provides it with a technical expert as well as a financial expert on an ad hoc basis. However, the KLM said that it would like to appoint permanent finance officials in the near future. The KLM reported that the DBSA has assured it that it will contribute 60 per cent of the total cost for the conversion from the IMFO to the GRAP reporting systems.
The KLM informed the Committees that the Department of Health has built a clinic in Hondeklipbaai and the Department of Agriculture, Forestry and Fisheries has implemented land-care projects. The KLM further reported that the Department of Public Works committed itself to re-gravel 56 kilometers of roads in the Kamiesberg Local Municipality.
The Kamiesberg Local Municipality reported to the Committees that commitments which were made by sector departments and other entities were implemented. These included the support that the KLM is getting from the Provincial Treasury as a result of the resignation of the CFO. The KLM further reported that the Department of Energy indicated that it will make available an amount of R1.7 million which is reflected in the draft Division of Revenue Bill (DoRB) instead of R2.3 million which was previously agreed on. Therefore, the KLM said that it would not be able to complete the electrification of the Lepelsfontein area with only R1.7 million. The KLM assured the Committees that its IDP is aligned to the PGDS.
With respect to compliance with the MFMA, the KLM reported that both the supply chain management policy and bid committee are in place, but there is no budget and treasury office (BTO) and the functions of the BTO are performed by the finance unit. The Kamiesberg Local Municipality assured the Committees that the BTO will be established after the Chief Financial Officer and the Head of Treasury Office are appointed. The KLM reported that both internal audit and audit committee are not in place, but negotiations about shared services with the district municipality are ongoing.
The KLM informed the Committees that its annual financial statements (AFS) are always submitted on time and the current one will be submitted on 31 August 2010. The KLM added that its section 71 reports are submitted every month to National Treasury. The KLM reported that its annual report was adopted by the Council and it has since been submitted to the Provincial and National Treasuries, the Auditor General and the MEC for Local Government in the Province and the Provincial Legislator.
With regard to service delivery and capacity constraints, the Kamiesberg Local Municipality reported that all households in their municipal area have access to electricity with the exception of those residing in the Lepelsfontein area. The KLM further reported that households highly depend on bore-hole water and 90 per cent of households have access to water. Furthermore, the KLM reported that households have 100 per cent access to sanitation. The KLM further reported that all households in its municipal area have access to refuse removal and solid waste disposal, but dumping sites in the Hondeklipbaai, Lepelsfontein and Garies areas are not registered. The KLM reported that its roads are in a poor condition because there is no budget for maintenance and/or upgrading of roads. However, the KLM has applied for MIG funding to address roads infrastructure. The KLM reported that is has a total number of 1 469 registered indigents.
The Kamiesberg Local Municipality reported that the growth in the total budget over the 2008/9 to 2009/10 period is 6 per cent and factors contributing to this growth in the total budget are due to new appointments and inflation.
3.11 Karoo Hoogland Local Municipality The Karoo Hoogland Local Municipality (KHLM) reported that part of the FMG will be utilised for GAMAP/GRAP conversion and that the conversion tender to the value of R875 000 was awarded to Mubesko Africa company in December
- The KHLM added that the rest of the FMG grant will be utilised for the upgrading of the communication network and the electronic linking of the satellite offices with an aim to integrate the financial management system. Tenders inviting potential service providers have been sent out and the awarding of tender shall take place in March 2010. The KHLM highlighted that both projects have been identified as focal areas in the municipal turnaround strategy.
The KHLM said that the balance of the MSIG grant has been reserved for the revision of the new valuation roll which was implemented in July 2009. The KHLM reported that all claims of the contractors and consulting engineers have been paid using the MIG. However, the KHLM reported that the project has been delayed due to a rock formation which was found while it was excavating the soil. The consulting engineering company, called KV 3, has indicated that the project will be delayed for a long period.
The KHLM committed that, by the end of 2009/10 financial year, it will be GAMAP/GRAP compliant and that the previous non-compliance was the main reason for the disclaimer opinion that was given by the AG for the 2008/09 financial year. The KHLM reported that the wide area network (WAN) which will be in place by the end of the 2010/11 financial year will enhance service delivery and financial management.
The KHLM reported that it has good and active intergovernmental relations with specifically the departments of COGTA, National Treasury, Water and Environmental Affairs, and Economic Affairs and Tourism. The KHLM said that COGTA and Provincial Treasury were directly involved with interventions and corrective measures which were put in place in 2008 when the KHLM was experiencing service delivery challenges. The KHLM added that it has a good and direct working relationship with the DBSA which seconded a financial expert to the KHLM since February 2008.
The KHLM reported that it does not have direct relation problems with Eskom; but the KHLM argued that it is being prejudiced by the fact that Eskom is the sole electricity provider to approximately 40 per cent of consumers in municipal area. The KHLM said that it does not receive any share in the income that Eskom generates from their municipal area. The KHLM added that it competes with Eskom with regard to tariff structures. Furthermore, the KHLM said that it does not benefit from subsidies that Eskom receives from government for capital projects and developments.
The KHLM reported that sector departments who operate in its area of jurisdiction were actively involved in the IDP processes. Through their engagement in the IDP processes, they committed themselves to specific projects. The KHLM reported that the following commitments were made: COGTA committed to support the KHLM with compilation and implementation of IDP, the compilation of Housing Sector Plan and the training of staff on MIG and MIS programme; the Department of Economic Affairs & Tourism and the Northern Cape Tourism Authority will be involved in drafting Local Economic Development (LED) Strategy, and the revision of Tourism Plan; the Department of Health will construct a new Community Health Centre; the Department of Road & Public Works is implementing the EPWP Projects; and the Department of Social Services and Population Development will establish offices to enhance service delivery at local level. The KHLM said that it will host an IDP Indaba with all sector departments and other stakeholders to strengthen relations and to enhance development in the KLM.
The KHLM reported that, during the process of compiling a new IDP for 2008/09 financial year, special endeavours were made to ensure the alignment of the IDP to the Provincial Growth and Development Strategy.
With respect to the compliance with MFMA, the KHLM told the Committees that supply chain management policy is in place and that this policy provides for the establishment of a bid committee. The KHLM reported that it does not have a budget and treasury office (BTO); as a result, it does not comply with the provisions of section 80 of the MFMA. The KHLM argued that, due to limited staff and budget constraints in the past, a budget and treasury office could not be established and the Chief Financial Officer could not be appointed. However, the KHLM said that its position has improved and the appointment of a CFO has been identified as a priority in their municipal turnaround strategy.
The KHLM reported that the 2008/09 annual financial statement was submitted to the AG, and section 71 (of the MFMA) reports are submitted timeously on a monthly basis. The Karoo Hoogland Municipality reported that it does not have an internal audit and audit committee, and therefore it does not comply with section 165 of the MFMA. The KHLM added that an endeavour to establish a district unit was undertaken some years ago, but did not materialise. However, the KHLM reported that the KHLM and Hantam Municipality have recently agreed to establish and co-own a unit in the near future and these afore-mentioned municipalities have had discussions with potential service providers. The KHLM further reported that its annual reports were submitted in terms of legislative requirements for the 2007/08 and 2008/09 financial years.
With regard to service delivery, the KHLM reported that although all households have access to electricity, the Fraserburg reticulation network is outdated and has deteriorated to such an extent that it poses a serious danger risk. The KHLM said that it is struggling to obtain funds to fix the reticulation network. The KHLM reported that all households have access to sanitation and the bucket system has been eradicated. The KHLM added that Fraserburg’s and Williston’s oxidation ponds have been upgraded with MIG funding and Sutherland’s oxidation ponds are being upgraded with MIG funds.
With respect to access to water, the KHLM said that all households have direct access to water connections and bulk storage capacity in Williston and Fraserburg. The Karoo Hoogland Local Municipality said that the upgrading of the bulk storage capacity in Sutherland has been identified as a future MIG project. Furthermore, the KHLM reported that the upgrading of internal reticulation networks in all three towns under its jurisdiction has been identified as future MIG projects. The KHLM reported that proper services for refuse removal are rendered in all three towns and that the upgrading of the refuse dump sites in Williston and Sutherland has been identified as future projects.
The KHLM reported that the upgrading of roads and storm water networks have been registered as MIG projects. The KHLM reported that gravel roads that link the three towns needs to be upgraded for tourists’ attraction. The KHLM said that it services 3 036 households including 1 211 registered indigents. The KHLM reported that it does not have any backlogs in terms of the provision of basic services.
The KHLM reported that its audit tariffs increased by 35 per cent and the South African Local Government Association (SALGA) membership fees increased by almost 300 per cent. The KHLM added that electricity purchases increased by 20 per cent although the increase in sales does not correspond as the seasonal tariffs charged by Eskom which are higher during the winter months.
The KHLM reported that it is 100 per cent dependant on external funding for its capital budget and it relies mainly from the MIG and the DBSA’s funding. The KHLM added that 39 per cent of its operating budget goes to salary; repairs & maintenance expenditure is 10 per cent of total operating expenditure. The KHLM said that emphasis has now changed from emergency repairs to scheduled maintenance. The KHLM claimed that the vehicle fleet is old and, repairs and maintenance requirements are extremely high and this has a detrimental effect on service delivery.
3.12 Siyanda District Municipality The Siyanda District Municipality (SDM) reported that, through the financial management grant (FMG), it has appointed 4 interns; and that, with the MIG funding, the SDM has tarred streets and constructed phases 1 and 2 of the sports fields at Riemvasmaak; and that, with the MSIG funding, the SDM has conducted property valuations.
The SDM reported that a housing project commenced in January 2010 and it is at foundation phase. The SDM added that, in 2009, the Council received 3 awards for the best performance in the categories of operation and maintenance unit, alternative energy to households, and enhancing housing delivery. The SDM gladly reported that that it is mentoring the Cacadu District Municipality in the areas of operations and maintenance. The SDM told the Committees that the Council decided to render municipal health services in Kai Garib area as from 01 July 2010.
With respect to intergovernmental relations, the SDM said that participation of sector departments in IDP process is poor and only the Department of Safety & Security and Social Services attend regularly.
In terms of the integrated development policy (IDP), the SDM reported that the Council approved the Siyanda Growth and Development Strategy in 2007, and that this document is aligned with the Provincial Growth and Development Strategy.
The Siyanda District Municipality (SDM) reported that a supply chain management policy is fully implemented and it is reviewed on yearly basis. The SDM reported that the bid committee is comprised of directors only as prescript by legislation. The SDM told the Committees that budget and treasury office (BTO) was established in October 2009. The SDM said that, due to the importance of and willingness to comply with all legislative frameworks, a position of Deputy Chief Financial Officer (CFO) was created. The SDM said that the BTO is fully staffed, and compilation and submission of financial reports is its responsibility. The SDM reported that section 71 (of the MFMA) reports are submitted timeously to Provincial Treasury and the new format of reporting is adhered to. The SDM added that, for three consecutive years, annual financial statements were submitted timeously. Furthermore, the SDM reported that section 21 of Municipal Systems Act, Number 32 of 2000 and section 127(5) of MFMA, Number 56 of 2003 are adhered to. The SDM reported that the 2008/09 annual report is currently available on its website and hard copies are kept in its offices for public ‘consumption’; and that the final approval of the 2009/10 annual report will be on 25 March 2010.
When reporting on internal audit and audit committee, the SDM said that its audit committee exists and it has 3 members but the internal audit unit is not fully functioning due to the lack of expert officials since there is 1 internal auditor and 3 interns in the SDM.
With respect to service delivery, the SDM reported that it takes part in energy forum which is convened by the Department of Energy. In addition, the Council approved the supply of solar power in 26 houses and provided solar powered streetlights around Swartkopdam.
With respect to water, the SDM reported that, in the Kenhardt area, the water pipeline is under construction; in the Riemvasmaak mission, 33- kilometer water pipeline project at a cost of R71 million is to commence and the funding agreement with the Department of Rural Development and Land Reform is to be signed; a feasibility for extension of Kalahari East water pipeline is currently updated; and a Swartkopdam settlement is at the stage of registration with MIG water project and this will provide 26 houses with gutters and tanks for rain water.
With respect to sanitation, the SDM reported that Kai Garib, Kheis, and Tsantsabane areas have post-1994 backlog needs and there are projects that will be implemented. The Siyanda District Municipality added that the refuse removal services are rendered to all areas within the jurisdiction of the SDM. The SDM said that there are no real challenges experienced because the District Waste Management Plan and guidelines are in place.
The SDM reported that maintenance of gravel roads is a challenge for municipalities. The SDM further reported that its gravel roads are in a poor condition and were damaged by recent floods. However, the SDM reported that it is expecting to receive R5 million to be spent on re-gravelling two major roads, one in North-Eastern Kalahari and another one in Olifantshoek.
The SDM reported that 252 households have water problems during the summer seasons but the SDM transports water to these households with the assistance from the Department of Water and Environmental Affairs. The SDM reported that over 106 households have no toilet facilities. The SDM concluded that it needs to gather information on service delivery backlogs from communities living on farm lands.
The SDM reported that there are consumer debtors for 315 households in Riemvasmaak & Swartkopdam and 260 households are classified as indigent. The SDM reported that the overall outstanding debt is R266 553. The SDM further reported that sundry debtors amount to the value of R6 792 022. Furthermore, the SDM reported that the sector departments owe the SDM R5 365 714. In addition, the SDM reported that it has an outstanding debt for 3 years to the value of R6 247 369 and this debt is irrecoverable.
The SDM reported that the municipal property rates is R1 003 271 is levied; 2 468 rate payers were billed; 1 311 accounts were posted out to farmers; 1 157 accounts are without valid addresses; and there is a dispute between the Siyanda District Municipality and the farmer unions over tariffs. The Siyanda District Municipality reported that salaries amounted to 33 per cent of the operating budget, and repairs and maintenance cost are 2.7 per cent of the total operating budget.
3.13 Mier Local Municipality The Mier Local Municipality (MLM) reported that there is a successful upgrading of water network from Hakskeenpan to Klein-en Groot Mier; that the supply chain management’s process is slow; and that the Municipal Systems Infrastructure Grant was used to draft by-laws and conversion of accounting systems to GRAP and drafting of the IDP. The MLM reported that valuation roll is complete. The MLM further reported that the financial management grant was used for the training of interns, the upgrading of financial system, and the capacity building program for financial personnel.
The MLM reported that it received additional funding from the provincial departments after the approval of the budget, and the DBSA subsidized the MLM with R303 200. The MLM further reported that its capital budget is R8 318 000 and the total operating budget is R11 960 547. Furthermore, the MLM reported that capital grant dependency is 90 per cent and the operating grant dependency is 62 per cent.
The MLM reported that the income generated from levies is 60.15 per cent (including subsidies) of the total income earned by the MLM. Furthermore, the MLM reported that its salary as a percentage of its total operating budget is 41.48 per cent, and that repairs and maintenance component amounts to 0.04 per cent of the total operating budget.
With respect to the intergovernmental relations, the MLM reported that either there is poor attendance by sector departments and other stakeholders during the IDP’s meetings or junior officials are sent to the IDP forum and they can not make authoritative decisions. The MLM reported that, in most cases, sector departments submit their plans after the municipal planning process is complete. The MLM informed the Committees that the IDP is aligned with the Provincial Growth and Development Strategy and the draft IDP will be tabled to the Council before 31 March 2010.
In compliance with the MFMA, the Mier Local Municipality reported that a supply chain management (SCM) policy was adopted by the Council and it has established the SCM unit. The MLM reported that the budget and treasury office (BTO) will be established before 31 July 2010. The MLM reported that the annual financial statement was submitted in time to the AG and other relevant departments; and that section 71 (of the MFMA) reports are submitted on monthly basis to Provincial Treasury and the Mayor. The MLM reported that an internal auditor is acting as chief financial officer (CFO) and no audit committee is in place. The MLM added that the annual report was tabled to the Council on 1 February 2010 and a publication is sent to the newspapers inviting public comments.
With respect to service delivery, the MLM reported that Eskom is the sole service provider for electricity in the Mier area. The MLM further reported that, out of 1 900 total households, 1 350 households have metered water and 550 households do not metered water. Furthermore, the MLM reported that there is a problem of old and ageing bulk water infrastructure and water quality is not satisfactory; that 1900 households have access to sanitation; that there is no oxidation ponds in towns except in Rietfontein; that there is only one sanitation truck for whole area (approximately 2 000 kilometers) of the MLM. The MLM further reported that it has sub-contracted the refuse removal in three townships; that it is responsible to ensure that services are delivered to the community; and it has an informal dumping site.
The Mier Local Municipality (MLM) reported that its roads are mostly gravel roads and there are informal streets in towns. The MLM informed the Committees that the Siyanda District Municipality (mentioned in sub-section 3.12 above) is maintaining the gravel roads in Mier area.
The Mier Local Municipality (MLM) reported that there are 300 indigent households that are receiving subsidies and that the indigent register is updated in March every year. The MLM revealed that it offers free basic service such as 6 kilolitres of water; electricity to the amount of 50 kilowatts; sanitation to the value of R60.58; and refuse removal to the value of R85.83.
Due to the capacity constraints, the MLM said that it has identified training needs on the following areas: Generally Accepted Municipal Accounting Practice or Generally Recognised Accounting Practice, South African Municipal Resource Administration Systems, human resource management, administration, supply chain management, project management, and water quality management. The MLM explained that project management and water quality management was identified as training needs in order to address water and sanitation service delivery backlogs.
- Comments by Stakeholders 4.1 South African Local Government Association The South African Local Government Association (SALGA) reported that the formula used to allocate the equitable share to municipalities has flaws. The SALGA proposed that National Treasury should refrain from holding money from the under-spending municipalities but, instead, give the struggling municipalities targeted assistance in order to achieve improved service delivery.
With respect to the issue of poorly performing municipalities, the SALGA reported that Provincial Departments of Cooperative Governance should play an active role with bias towards struggling municipalities before these struggling municipalities reach a service delivery crisis level. The SALGA recommended that section 139 of the Municipal Finance Management Act should be used as a last resort. The SALGA raised its concern about municipalities that are under-spending MIG when the municipal infrastructure is in despair.
4.2 National and Provincial Treasury The National Treasury told the Committees that some municipalities were not taking the Auditor-General’s (AG) reports seriously and that is why these municipalities keet on receiving adverse audit opinions. The National Treasury is of the view that these municipalities have a challenge when it comes to financial management hence the annual reports are not complying with the MFMA. The National Treasury reported that most municipalities do not spend their conditional grants on the programmes they are meant for. Furthermore, the National Treasury reported that the municipalities are owed by certain sector departments. The National Treasury further reported that another challenge for municipalities is the quality of their reports. However, the National Treasury assured the Committees that skilled officials will be seconded to the municipalities.
The National Treasury reported that Municipal System Infrastructure Grant is available to municipalities but this grant is seriously under-spent because some municipalities failed to recruit ‘trainable’ interns. The National Treasury informed the Committees that Provincial Treasury and AG are available to provide financial skills to municipalities but in most cases, the municipalities are not requesting help and help can not be forced to them.
4.3 Eskom Eskom reported that they do participate directly in the IDPs of all municipalities due to other responsibilities that Eskom must play including the provision of municipal electrification needs. Eskom further reported that it is currently upgrading power stations so that they can be able to provide additional engineering capacity and supply electricity to many areas and this programme is estimated to cost R18.5 million. Eskom expressed their dissatisfaction to the Committees that although it is working hard to reduce the electrification backlog, informal settlement is being constructed everyday and anywhere in the country. Eskom further informed the Committees that municipalities are encouraged to save electricity.
4.4 National and Provincial COGTA The Department of Cooperative Governance and Traditional Affairs (DoCGTA) reported that it had identified poor-performing municipalities in the Northern Cape and financial expects have been seconded to these municipalities. The DoCGTA informed the Committees that a total of 62 municipal finance officials are currently being trained by the DBSA. The DoCGTA reported that officials from regional offices will be seconded to struggling municipalities. But, the DoCGTA expressed their dissatisfaction with the municipalities that are retaining in positions financial managers who are failing to pull their municipalities out of adverse auditor’s opinion. The DoCGTA proposed that punitive measures should be considered.
Furthermore, the DoCGTA reported that R12 million was spent by the municipalities on consultants preparing annual financial statements and the value-for-money is non-existent. The DoCGTA reported that, out of 36 municipalities in the Province of the Northern Cape, only 6 of them received unqualified audit opinions. The DoCGTA added that a municipal turnaround-strategy to address all challenges in the municipalities was being developed.
The DoCGTA informed the Committees that it is about to embark in strategy which seeks to assist municipalities. The DoCGTA said that it is going to visit all municipalities preparing for the 2009/10 annual reports.
The DoCGTA added that it, together with the South African Local Government Association, are looking at how people at municipal level can be trained on oversight. The DoCGTA added that this training will capacitate people who sit in audit committees and the Councilors to learn how to conduct an effective oversight.
The DoCGTA reported that the Phokwane Local Municipality (PLM) was doing everything by hand because they lost their automated systems and documentation when their buildings were on fire. The Development Bank of Southern Africa (DBSA) is assisting the PLM to ensure that all transactions are captured in a computerized system.
The DoCGTA highlighted that the issue of ensuring that each municipality has a budget and treasury office (BTO) is a challenge because low-capacity municipalities are struggling to establish them. The DoCGTA advised the Committees that, if low-capacity municipalities are forced to establish BTO, they will overspend. The National Treasury reported that 60 specialists will be made available to assist all municipalities across the country.
4.5 Department of Energy The Department of Energy (DoE) informed the Committees that electrification is the responsibility of Eskom. The DoE explained that it is through legislation that this responsibility is drawn from. However, the DoE reported that it allocates funds for each municipality as per their needs. The DoE explained this by saying that if there is an ongoing electrification programme in one municipality, the DoE does not allocate funds until the project is finished. The DoE reported that municipalities are invited to attend the Energy forum but municipalities are reluctant to attend. The DoE stressed that Municipal Managers and Technical Managers are expected to attend the Energy forum. Furthermore, the DoE reported that it is struggling to get monthly reports from some municipalities.
4.6 The Development Bank of Southern Africa By way of assisting the municipalities, the Development Bank of South Africa (DBSA), through the Siyenza Manje programme, have seconded its experts to municipalities. Because municipalities are struggling to attract and retain skilled CFOs, the DBSA reported that it has seconded 11 financial expects and 5 young professionals to work within municipalities. The DBSA further reported that 7 technical expects and 2 young professionals are assisting municipalities with technological issues.
4.7 Fiscal and Financial Commission The Financial and Fiscal Commission (FFC) commented that there seems to be a challenge on how funds are spent on capacity building programmes because the effectiveness of these training programmes is questionable. The FFC further reported that there are more reasons for National and Provincial Treasuries to support the municipalities that are experiencing challenges. Furthermore, the FFC reported that the National Treasury and Provincial Treasury need not duplicate but provide coordinated services to municipalities.
- Key Findings The Committees have identified that smaller municipalities seriously lack capacity which makes them rely on the use of consultants. Although these smaller municipalities make use of the consultants, there is no evidence that the audit opinion of municipalities that use consultants is improving. Therefore, the Committees are of the view that consultants do not transfer skills to the municipalities that they are assisting. Municipalities, mainly those in rural areas, are experiencing skills flight and shortage, especially in the fields of finance, engineering and similar fields. The Development Bank of Southern Africa is assisting these struggling municipalities but it is too much of a task to be carried out by a single entity and the Committees advise that all sector departments should commit themselves towards assisting these municipalities in carrying out their municipal turnaround strategies.
The Committees are of the view that most municipalities are spending more funds on salaries rather than on operational programmes. The Committees has realized that there is a correlation between lack of service delivery, which results in community service delivery protests, and the high percentage of municipal funds that go to remuneration packages. The Committees noted that municipalities appoint people into positions without relevant skills.
The oversight visit to the Province of the Northern Cape, similar to the oversight visit to the Province of Mpumalanga that has been conducted by the Committees in 2009, has revealed that many national and provincial departments owe money to municipalities for services rendered by these municipalities on behalf of the provincial and national departments. The challenge is that provincial and national departments are providing all sorts of excuses for their failure to pay municipalities. These unfortunate situations have left municipalities with insufficient funds to finance other municipal services. In turn, service delivery is grossly compromised. The Committees advises all provincial and national departments who owe money to municipalities to effect these payments with immediate effect without any further excuses for their inability to pay them.
Some municipalities reported that sector departments do participate in their integrated development plans (IDP), while other municipalities report that sector departments do not attend their IDP meetings. However, the sad fact is that, most of the sector departments, who attend IDP meetings do not make adequate contributions to these meetings. Alternatively, they send junior officials who can commit their departments to any function nor take authoritative decision to assist municipalities. Put differently, most sector departments who attend IDP meetings do so in order to appear as if they participate in these IDP meetings. Even worse, some of the sector departments who participate in IDP do not honour their commitments. Only few municipalities are happy with the participation of sector departments in their IDP forums. The Committees encourage sector departments to participate in IDP discussions because most of service delivery of any sector/ public entity happens in municipalities. The Committees are of the view that the Ministry in the Presidency for Performance Monitoring and Evaluation and the provincial and National Departments of Cooperative Governance and Traditional Affairs are key partners to facilitate the provision of assistance by sector departments to municipalities including participation in the IDP and municipal turnaround Strategies.
Most municipalities, especially the low-capacity municipalities, are struggling to convert from the Institute of Municipal Finance Officers to the Generally Recognised Accounting Practice reporting systems due to both financial and human resources capacity constraints. These capacity constraints have led to many of these municipalities to be given a disclaimer audit opinions by the Office of the Auditor-General. Therefore, with the assistance from the National Treasury and the Department of Cooperative Governance and Traditional Affairs, these municipalities should be encouraged to include solutions to these financial reporting challenges in their municipal turnaround strategies for the Operation Clean Audit Report (OPCAR) campaign.
Almost all water systems/ facilities are out-dated and water is being lost due to daily water pipes leakages. Unauthorised sources claim that 40 per cent of South African water (a scarce resource) is being lost through water pipes leakages. The unfortunate fact is that it is either that municipalities do not have money to repair water pipes or that municipalities do not have human resources that understand water structures/systems that are buried underground. Costs to repair and maintain these water pipes are escalated by the fact that the majority of these water pipes are made of asbestos and asbestos water pipes are no loner available in the market and these water pipes have to be replaced with plastic water pipes. This poses a serious challenge to most municipalities since the budget for water repairs and maintenance is a low as a percentage of the total operating budget. The Committees are of the view that funds should be made available and ring-fenced for the replacement of existing water pipes with plastic water pipes. A form of a conditional grant may be created for this purpose. It is needless to state that this is critical for a water-scarce country like South Africa.
Most municipalities do not have either an internal audit, audit committee and/or budget and treasury office. Even worrying, most of the municipalities who have any of the afore-mentioned committees or offices are not functional. The Committees are of the view that these municipalities are in gross violation of the Municipal Finance Management Act (MFMA). The Committees advise these municipalities to include, in their municipal turnaround strategies, plans to establish the afore-mentioned committees or offices as per the MFMA.
The salaries of municipal officials as a percentage of the total operating budget for almost all municipalities visited are within 40-50 per cent of the total operating budget. The Committees are of the view that this percentage is high since municipalities are expected to pay for other operating activities as well. The Committees advise that the salaries of municipal officials should be reviewed in order to ensure that municipal officials are paid appropriately and there is no over-staffing which unnecessarily increases the total amount paid in salaries. Over-staffing in some divisions may result in under-staffing in other important divisions, usually finance and technical divisions.
- Recommendations The Select Committee on Appropriations and the Select Committee on Finance, after careful consideration of the service delivery and financial performance of the above-selected municipalities in the Northern Cape, recommends that the National Council of Provinces considers the following: • That the National Department of Cooperative Governance and Traditional Affairs, the National Treasury, and the National Department of Labour should monitor and evaluate the skills of people employed at municipalities in order to ensure that people with relevant skills are employed in key positions in the areas of finance, engineering and other technical fields; • That the National Department of Cooperative Governance and Traditional Affairs and the National Treasury should contribute to the Municipal Turnaround Strategy by developing tools that are going to assist municipalities to comply with all provisions of the Municipal Finance Management Act; • That the National Department of Cooperative Governance and Traditional Affairs and the Presidency should develop rules and procedures on how the provincial and national departments must fully and actively participate in the Integrated Development Plans (IDPs) of the municipalities and ensure that IDPs are aligned to the Provincial Growth and Development Strategy (PGDS); • That the National Treasury and the National Department of Cooperative Governance and Traditional Affairs should develop programmes aimed at assisting municipalities (especially low-capacity municipalities) with the conversion from the Institute of Municipal Finance Officers to the Generally Recognised Accounting Practice reporting systems; • That the National Department of Cooperative Governance and Traditional Affairs and the National Department of Public Service and Administration should ensure that municipal and other government’s officials are banned from doing business with any municipality in the country; • That the National Treasury and the National Department of Cooperative Governance and Traditional Affairs should contemplate creating a conditional grant aimed at providing municipalities with funds to acquire skills and finance water pipes replacement projects; • That the National Department of Cooperative Governance and Traditional Affairs and the National Department of Labour should review the use of consultants by municipalities with an aim of finding a solutions to capacity constraints of municipalities; • That the National Department of Cooperative Governance and Traditional Affairs and the National Treasury should ensure that the plans to establish internal audits, audit committees, and budget and treasury offices are included by municipalities in their municipal turnaround strategies; and • That the National Department of Cooperative Governance and Traditional Affairs, in consultation with relevant stakeholders, should review salaries, qualifications and experiences, and the number of employees in scarce skills areas and other areas with an aim to determine if the appropriate number and skills of officials are employed at municipalities. A special focus should be dedicated to low-capacity municipalities.
Report to be considered.
- Report of the Select Committee on Trade and International Relations on the Agreement between the European Community and its Member States, of one part, and the Government of the Republic of South Africa, of the other part, Amending the Agreement on Trade, Development and Cooperation (TDCA), dated 05 May 2010:
The Select Committee on Trade and International Relations, having considered the request for approval by Parliament of the Agreement between the European Community and its Member States, of one part, and the Government of the Republic of South Africa, of the other part, Amending the Agreement on Trade, Development and Cooperation (TDCA), referred to it, recommends that the House, in terms of section 231(2) of the Constitution, approve the said Agreement.
Report to be considered.[pic][pic][pic]