Presentation

NEDLAC

28 September 2015

“BUILDING A RESPONSIVE, EFFECTIVE,

ACCOUNTABLE AND EFFICIENT

DEVELOPMENTAL LOCAL GOVERNMENT

1

INTRODUCTION – LOCAL GOVERNMENT : 15 YEARS

The transformation of local government took almost a decade to complete (1993 – 2000). The overall objectives were:

• Abolishing local governance based on race;• Integrating previously divided communities under one municipal

authority and tax base;• Establishing democratically elected local government throughout the

country; and• Extending service delivery to the majority of the population and the poor

in particular who had been deprived of access to services andinfrastructure under apartheid.

Post-apartheid local government functions with a radical new mandate. TheConstitution gave local government a new development mandate, namely:

• A municipality must “structure and manage its administration;budgeting and planning processes to give priority to the basic needs ofthe community and to promote the social and economic development ofthe community”.2

HISTORY OF LOCAL GOVERNMENT’S TRANSFORMATION

Negotiations between statutory &

Non-statutory sides to form pre -interim

councils

Elections – Transitional Framework

Policy development culminating in

Local Governm ent White Paper in M arch 1998

Testing of v iability of transitional structures

New local government legislation

Passed on local government re -demarcated

Establishment phase: Inauguration of

New system of LG – Elections held in

Terms of legislation

Consolidation phase: full implementation

of developmental local government

systems and practices

Sustainability phase: further support to

Ensure continued stabilisation and

improvement in local government

1994

1995-6

1995-6

1998-9

1997-8

2000-2

2002-5

2005-15

PRE-INTERIMPHASE

INTERIMPHASE

FINALPHASE

3

CONSTITUTIONAL FOUNDATIONS

1. Chapter 3 {section 40 (1)} of the Constitution constitutes

government as National, Provincial and Local spheres, which

are distinctive, inter-dependent and interrelated;

2. Section 40 (2) enjoins all spheres of government to observe

and adhere to the principles of cooperative government and

intergovernmental relations set out in section 41;

3. Chapter 7 {section 151(1)} of the Constitution states that local

sphere of government consist of municipalities, which must be

established for whole of territory of the Republic;

4. Section 154 (1) of the Constitution obliges National and

Provincial government to support and strengthen capacity of

municipalities to manage their own affairs, to exercise their

powers and perform their functions”

4

LOCAL GOVERNMENT

MANDATESection 152 of the Constitution sets out the objects of Local

Government. An ideal municipality should;

Provide democratic and accountable government for local

communities

Be responsive to the needs of the local community

Ensure the provision of services to communities in a

sustainable manner

Promote social and economic development

Promote a safe and healthy environment

Encourage the involvement of communities and

community organisations in matters of local government

Facilitate a culture of public service and accountability

among its staff5

SERVICES DELIVERED WITHIN MUNICIPAL BOUNDARIES - HOUSING

South Africa has progressively accommodated an additional 4.1million households in formal dwellings, an upward growth from74.4% in 2003 to 79.4% in 2014. The government subsidy housingprogramme country-wide contributed some 1 367 870 formal housesbetween 2004 and 2014.

The number of households in traditional structures has declinedfrom 10.3% to 6.8% over roughly a similar period.

Whilst informal dwellings as a proportion of total households havedecreased, there has been an absolute increase in the number of

households living in informal settlements.

There has been steady progress in broadening access to basicservices. Government’s success in service delivery over the last 20years was premised on a commitment to massively increase thestock of public and municipal infrastructure.

6

SERVICES DELIVERED WITHIN MUNICIPAL BOUNDARIES - POTABLE WATER

According to Stats SA 12.1 million consumer units had access towater in 2014. Of this number, 8.3 million have access to waterinside the yard, while 2.6 million had water within 200m from yard.800 000 had access to water more than 200m from their yard.

Two examples of increased number of consumer units receivingbasic water is that of Moses Kotane Local Municipality (10 84),specifically in the areas of Mogwase and Madikwe and NelsonMandela Bay Metro (10 558), where services were provided to theareas of Greenfield and Rosedale extension.

In terms of the highest number of consumer units receiving water,the following metropolitan municipalities are leading in thecountry:

1) Johannesburg (986 411) 2) Ethekwini (896 112)

3) Tshwane (793 997) 4) Cape Town (784 413)

5) Ekurhuleni (717 100)7

ACCESS TO POTABLE WATER – CONSUMER UNITS

8

In terms of the highest number of consumer units receivingelectricity, the following metropolitan municipalities are leadingin the country:

1) Cape Town (823 520) 2) Johannesburg (764 844)

3) Tshwane (744 261) 4) Ethekwini (694 625)

5) Ekurhuleni (540 872)

In the other six provinces, the following municipalities have thehighest number of consumer units receiving electricity: EasternCape, Nelson Mandela Bay MM (314 398), Free State, MangaungMM (194 410), Limpopo, Polokwane LM (158 073), North West,City of Matlosana LM (160 890), Mpumalanga, Mbombela LM(117 48) and Northern Cape, Sol Plaatje LM (64 297).

SERVICES DELIVERED WITHIN MUNICIPAL BOUNDARIES -ELECTRICITY

9

ELECTRICITY

SERVICES DELIVERED WITHIN MUNICIPAL BOUNDARIES

10

In terms of the highest number of consumer units receiving sewerageand sanitation, the following metropolitan municipalities are leading inthe country:

1) Johannesburg (895 727) 2) Ethekwini (782 798)

3) Ekurhuleni (717 000) 4) Cape Town (667 240)

5) Tshwane (571 293)

In the other six provinces, the following municipalities have the highestnumber of consumer units receiving sewerage and sanitation: EasternCape, Nelson Mandela Bay MM (334 070), Free State, Mangaung MM(195 602), Limpopo, Polokwane LM (189 930), Mpumalanga,Mbombela LM (175 089), North West, City of Matlosana LM (164 109)and Northern Cape, Sol Plaatje LM (61 112).

From 2010 to 2011 there was a decrease in bucket toilets of 1511, whilethere was an increase from 2011 to 2012 (22 332) and 2012 to 2013 (10867). In 2014 there was a decrease of 16 553, bringing the total numberof buckets in the country to 84 065.

SERVICES DELIVERY WITHIN MUNICIPAL BOUNDARIES - SEWERAGE AND SANITATION

11

SEWERAGE AND SANITATION

SERVICES DELIVERED WITHIN MUNICIPAL BOUNDARIES

12

In terms of the highest number of consumer units receiving solid wastemanagement, the following metropolitan municipalities are leading in thecountry:

1) Ekurhuleni (1 007 880)

2) Johannesburg (992 613)

3) Ethekwini (945 910)

4) Cape Town (772 518)

5) Tshwane (559 396)

In the other six provinces, the following municipalities have the highestnumber of consumer units receiving electricity: Eastern Cape, NelsonMandela Bay MM (314 398), Free State, Mangaung MM (194 410),Limpopo, Polokwane LM (158 073), North West, City of Matlosana LM(160 890), Mpumalanga, Mbombela LM (117 48) and Northern Cape, SolPlaatje LM (64 297).

SERVICES DELIVERY WITHIN MUNICIPAL BOUNDARIES - SOLID WASTE MANAGEMENT SERVICES

13

INDIGENT HOUSEHOLDS

SERVICES DELIVERY WITHIN MUNICIPAL BOUNDARIES

14

Services delivery within municipal boundaries

Indigent households in each province and services they receive: 2014

15

WHERE ARE WE IN 2015?

A number of systemic service delivery and governance problems

remain consistently at the forefront of government’s

developmental challenges. These priority areas include:

Service delivery and backlog challenges, e.g. housing,

water and sanitation;

Poor communication and accountability relationships with

communities;

Problems with the political administrative interface;

Corruption and fraud;

Poor financial management, e.g. negative audit opinions;

Number of (violent) protests & Weak civil society

formations;

Intra - and inter-political party issues negatively affecting

governance and delivery; and

Insufficient municipal capacity due to lack of scarce skills.16

Remaining

Challenges

Insufficient

institutional

capacity

Low rate of

revenue

collection

Unskilled or

incorrect

personnel

Slow

service

delivery

Inadequate

public

participation

Ward

councillors &

committees

Social

distance of

officials

17

METROPOLITAN MUNICIPALITIES X 8

Characteristics:

These municipalities are key drivers of economic growth andeconomic activity.

Metropolitan cities and large towns produce 80% of thecountry's GVA and are home to 69% of the population, yetthey have some of the lowest densities in the world.

They have huge budgets and capacity - more thanProvincial and to some extent National departments.

Key challenges:

Increasing inward migration / urbanization,

urban sprawl and growing informal settlements

lack of spatial integration and transformation,

high unemployment, and poverty

infrastructure pressures and,

Challenges with Billing systems, etc.18

DISTRICT MUNICIPALITIES X 44

Characteristics:

There are Districts with huge potential for economic growth, e.g. Waterberg, Bojanala;

Some Districts are very weak and poor, with little or no revenue base and economic opportunities, e.g. Mutale, Gariep;

Districts designed to be Water Service Authorities to provide bulk water infrastructure to local municipalities;

Key Challenges:

Location of powers and functions between District and Locals;

Lack of ability to attract critical technical skills, resulting in failure to plan for and spend Infrastructure Grants, including the MIG;

24 out 44 Districts account for the highest number of basic service delivery backlogs;

19

Local Municipalities X 226Characteristics:

There is unevenness in capacity;

some have huge potential and strong economic base, e.g. Richards Bay, Rustenburg, Mbombela, Polokwane, George, Stellenbosch,, etc. (secondary cities),

Strong Locals which performs some functions on behalf of weak Districts, Steve Tshwete, Msunduzi, Plattenburg Bay, Sol Plaatje;

Other Locals are weak with no capacity, economic base and revenue base, e.g. Moretele, Mier, Fetakgomo, etc.

These weak and poor locals are heavily reliant on grants and equitable share: 95 of them are currently in financial distress;

Key challenges;

122 Locals located in the 27 Districts account for the highest number of basic service delivery backlogs;

Lack of ability to attract critical technical skills, resulting in failure to plan for and spend Infrastructure Grants, including the MIG;

Location of powers and functions between Locals and Districts;20

BACK TO BASICS ASSESSMENT The assessment was conducted using the following

functional factors:

─ Political stability

─ Governance

─ Service delivery

─ Financial Management

─ Institutional management and

─ Community satisfaction

Three Categories of Municipalities

─ Doing well

─ Potential to do well

─ Not doing well/ Dysfunctional

21

Number of municipalities per category per Province

Province Doing Well Potential to do

well

Not doing

well

Total

Eastern

Cape

18 13 14 45

Free State 8 7 9 24

Gauteng 10 2 0 12

KZN 35 18 8 61

Limpopo 6 8 16 30

Mpumalanga 7 7 7 21

Northern

Cape

11 6 15 32

North West 4 4 15 23

Western

Cape

20 8 2 30

Total 119 73 86 278

22

WHAT DOES “GETTING THE BASICS RIGHT”

MEAN? 1

Putting

people first:

let’s listen

and

communicate

Adequate

and

community

-oriented

service

provision

Good

governanc

e and

transparen

t

administrat

ion

Robust

institutions

with skilled

and

capable

staff

Sound

financial

managem

ent &

accounting

1 2 3 4 5

23

FUNCTIONAL MUNICIPALITY

Political and Administrative stability

All committees of council/management meet regularly,

good political admin. interface;

Alignment of spending & IDP, CAPEX spent, 7%, budget

on maintenaince;

Financial Management: Clean/ Unqualified audits;

Institutional management: clear policy and delegation

frameworks;

Community satisfaction: measurable annually

24

POOR FUNCTIONAL

MUNICIPALITY

Political and administrative instability, factionalism

Council committee’s don’t meet, fraud and corruption,

suspensions and vacancies;

Low service delivery, outages, asset theft, poor

maintenance;

Qualified/Disclaimers, non submittal of audits;

Institutional management: blatant disregard of policies,

flouting of regulation and no delegations;

Community satisfaction: high number of protests

25

B2B SUPPORT & INTERVENTIONS

Section 139 intervention under way in 2015

Madibeng - NW

Ngaka Modiri Molema - NW

Ventersdorp - NW

Tswaing - NW

Makana – EC

Oudtshoorn - WC

Continue to support in ensuring sustainability of

the interventions.

Mogalakwena

Nelson Mandela Bay Metro

Buffalo City and others 6

B2B: THE FIRST YEAR OF

IMPLEMENTATION

Whilst the first year’s interventions are still being

analysed

Firstly, overall compliance has improved in terms of

municipalities complying with the legislative

requirements

Secondly, over 80 specific interventions in

municipalities deemed to be dysfuncyional have now

been conducted and some progress is being made.

Thirdly, there is a far greater degree of

intergovernmental coordination through these focussed

approaches

The next few slides provide some general observations

from the specific interventions made27

Dysfunctional municipalities are not always those that

are financially distressed

0

20

40

60

80

100

120

Dysfunctional At risk Doing well

Financially distressed Not distressed

14% of

Municipalities

who are doing

well are in

Financial

distress

43% of

Dysfunctional

Municipalities

are in

Financial

Distress

28

Generally speaking dysfunctional

municipalities have fewer ward

committee meetings

-

 2

 4

 6

 8

 10

 12

 14

 16

Dysfunctional At risk Doing well

Average number of ward

committee meetings per

municipality

0

5

10

15

20

25

EC FS GT KZN LIM MP NC NW WC SAAve

Average number of ward committee meetings per

municipality per province

Gauteng have twice the

number of report backs

than the national

average

Free State have half the

number of ward

committee meetings

than the national

average

29

PUTTING PEOPLE FIRST

Progress is generally good on this pillar

Ward committee functionality has increased.

Many municipalities have appointed Batho Pele

champions

Most municipalities have Complaints systems in place

although many have not put in place a follow up

process.

Ward operational plans are being developed (although

it should be noted that in some instances those

developed with the assistance of CoGTA have been

rejected by the wards)

30

SERVICE DELIVERY

Service delivery progress varies between

municipalities. Many report regular refuse collection,

increase in resealing of roads etc, however some

municipalities have noted a regression in service

delivery standards, often due to cash flow issues;

Many of the rural municipalities are struggling to meet

required standards within their current budgets;

31

GOOD GOVERNANCE

A number of policies have been developed or

reviewed, and approved by councils e.g. anti-

corruption, public participation, financial policies etc.

In some municipalities, though, there is a lack of

cooperation with senior management with regard to

reporting on what is being done on the Back to

Basics programmes, making it difficult to assess

progress

32

FINANCIAL MANAGEMENT

There has been some progress in improving financial

systems although audit results are generally not

substantially improved and some have regressed

Many municipalities are failing to implement audit

follow up’s

Under expenditure on the capital budget remains a

challenges

Cash flow remains a challenge in many municipalities,

with a number unable to pay creditors within 30 days.

Billing systems need to be addressed, as does debt

collection.

Challenges with supply chain management are also

noted by a number of municipalities33

INSTITUTIONAL CAPACITY

Progress is generally good on this pillar

Council committees and regularity of meetings

appears to have improved

A number of municipalities have placed a

moratorium on the filling of vacancies.

However, quite a few municipalities still have

critical vacancies (MM, CFO etc)

34

Municipal staff vacancies

35

FOCUS AREAS OF THE NEXT

PHASE OF B2B

• Support the outcomes of the municipal amalgamation

after announcement by the MDB;

• Accelerate integrated planning and delivery of basic

services;

• Establish programmes to address generic systemic

problems – e.g. weaknesses in human resource

management, supply chain management, infrastructure

procurement and financial management

Strengthen community participation and local

government accountability to citizens - mechanisms for

enabling citizen complaints and engagements between

citizens and municipalities not effective.36

FOCUS AREAS OF NEXT PHASE OF

B2B

• Ensuring accelerated delivery of basic services re water,

sanitation, electricity, roads and storm-water and waste

removal.

• Tackling corruption

• Tackling “dysfunctional” municipalities, moving “at risk”

municipalities to “doing well” and preventing any

municipalities from regressing – special focus for

dysfunctional municipalities.

• Mobilise multi-departmental teams to tackle

dysfunctional municipalities (mobilise national and

provincial resources)

• Improving support and intervention to address

weaknesses in support programme and interventions

being designed and implemented.37

ROLE OF TRADITIONAL LEADERS IN

B2B

Critical stakeholder in the developmental

discourse, particularly as it relate:

‒ Access and release of land for development

‒ Mining activities in traditional communities

‒ Spatial development and municipal planning

processes

‒ Municipal revenue generation in communal land

owned areas

‒ Partnership and stimulation of local economies in

rural areas

38

MUNICIPAL BOUNDARY CHANGES WITH EFFECT FROM THE 2016 LOCAL GOVERNMENT ELECTIONS

39

BACKGROUND (2015)

• Between February and April 2015, the Minister requested the MDB, in

terms of section 22(2) of the Demarcation Act to determine or

redetermine the boundaries of various municipalities.

• In total, 34 requests were made to the MDB by the Minister, as follows:

PROVINCE NO. PROVINCE NO.

KZN 11 LIM 5

EC 5 MP 5

FS 2 NW 4

GP 1 NC 1

• 90 municipalities were affected through the above request.

• Of the 34 cases,

• 13 were not considered after the section 26 process;

• 20 cases were subjected to public hearings and meetings; and

• The MDB decided not to consider the amalgamation of Dipaleseng

(which includes Balfour) and Lekwa, but to conduct a more detailed

investigation into the reconfiguration of the municipal boundaries of

the affected municipalities after the 2016 local government elections.40

BACKGROUND (2015)

• On 2 July 2015, the MDB advised that 12 cases will be

considered through the section 21 process, as set-out below:

• On 25 August 2015, the MDB published its final decisions

in Provincial Gazettes. It had:

• Confirmed 9 cases; and

• Varied 3 cases (2 in Limpopo, and 1 in Eastern Cape).

• On 26 August 2015 the MDB informed that it has

amalgamated the Baviaans, Camdeboo and Ikwezi Local

Municipalities, and will be publishing a section 21 Notice

inviting representations from interested parties.

PROVINCE NO. PROVINCE NO.

KZN 1 LIM 4

EC 3 MP 1

FS 1 NW 1

GP - NC 1

41

• With effect from the 2016 local government

elections, the country will have 259 (or 257)

municipalities (from 278).

SUMMARY:

42

TIMELINE / PROCESSES TOWARDS THE 2016 LGE

ACTIVITY RESPONSIBILITY TIMEFRAME

1. Final determination of outer boundaries MDB August 2015

2.Handover of first batch of ward boundaries

to the IECMDB August 2015

3.IEC divides voter’s roll into municipal

segments for “new” municipalitiesIEC August 2015

4. MECs to determine number of councillors Provinces August 2015

5. Prepare draft wards; public engagements MDBAugust /

September 2015

6.Consider submissions; finalise ward

boundariesMDB October 2015

7.Handover of second set of ward boundaries

to the IECMDB

October /

November 2015

8. IEC prepares for elections IECFrom November

2015

9. Support provided to municipalities

DCoG; NT;

Provinces; SALGA;

IEC; MDB

From July 201543

AREAS OF COLLABORATION BETWEEN COGTA

AND NEDLAC

CoGTA recognises the important role of social partners in Nedlac

to develop effective policies to promote the urgently needed

economic growth, increased participation in economic decision

making and social equity in South Africa.

Possible areas for further research by Nedlac or joint projects

with CoGTA include:

Renewable energy at local level;

Roll-out of special economic zones;

The implementation of the urbanisation agenda (IUDF);

The Expanded Public Works Programmes is currently on the

research agenda of the Development Chamber of NEDLAC,

and the Community Work Programme at local government

level could also be considered;

Support aging infrastructure initiatives

Partnership with Business, Labour and Community sector in

implementation of the Back to Basics programme.44

Thank you

45