LEGISLATIVE & POLICY AGENDA FOR THE 4TH TERM OF LOCAL GOVERNMENT - - PowerPoint PPT Presentation

12th NATIONAL MUNICIPAL MANAGERS FORUM 21 FEBRUARY 2018

LEGISLATIVE & POLICY AGENDA FOR THE 4TH TERM OF LOCAL GOVERNMENT

OUTLINE OF PRESENTATION

• 1. Background
• 2. Legislative and policy agenda

q Proposed amendments: § High-level overview of proposals to the structures and demarcation acts;

• 3. Update on progress and issues raised on regulations for

senior managers (upper limits)

• 4. Management of competency assessment for senior

managers

• 5. Support provided to amalgamated municipalities
• 6. Recommendations

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1.

BACKGROUND

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BACKGROUND

q Initially, amendments to the Local Government: Municipal Structures Act, 1998 (“MSA”) mostly related to proposals received from the IEC. q These proposals were informed by challenges that were experienced by the IEC during the administration and management of municipal elections. q Apart from the four general LGEs that were held, there have also been many by-elections during the terms, as follows:

• 2000 -

60 by-elections;

• 2006 -

54 by-elections;

• 2011 -

741 by-elections; and

• 2016 - 114 by-elections.

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BACKGROUND

q The “INITIAL” Bill (prior to publication for comments): § OCSLA provided pre-certification on 10 January 2016; § DPME provided pre-certification on 20 January 2016; § Presented to the G&A Cabinet Committee on 16 March 2016 seeking approval for submission to Parliament / publication for Comments; § Published for comments on 25 May 2016 in Government Gazette No. 40017 - § Comments received from:

• SALGA, IEC, MDB;
• Mpumalanga and Western Cape CoGTAs;
• City of Cape Town, Ethekwini; Richtersveld; and
• OUTA, University of Western Cape.

§ Workshop held with stakeholders on 24 June 2016 – need to expand the amendments to the MSA; and § Workshop held with stakeholders on 9 November 2016 to discuss further / expanded amendments to the MSA.

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BACKGROUND

q The “FINAL” Bill (after receiving comments / engagement with stakeholders): § Meeting of Legislative Forum on 15 December 2016. § A 2-day Technical Legislative Review Workshop was held on 2 and 3 March 2017:

• Attended by DTA, NHTL, DRDLR, NT, DHA, DWS, DoJCD, OCSLA,

DPME, IEC, MDB, SALGA, All Provinces, SAPS, SACN, StatsSA, DoT, DoTourism; and

• 120 participants over the 2 days.

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OCSLA Pre-certification 30 June 2017 OCSLA Final Certification 12 July 2017 Presented to LG MinMEC 11 August 2017 DPME (SEIAS Certification for processing to Clusters) 22 August 2017 Presented to the G&A Working Session 21 September 2017 Presented to the G&A Cluster 5 October 2017 DPME (Final SEIAS) 13 October 2017

2.

LEGISLATIVE AND POLICY AGENDA

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PROPOSED AMENDMENTS: HIGH-LEVEL OVERVIEW (H-LO)

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PROPOSED AMENDMENTS TO THE MSA: H-LO

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1. ELECTORAL MATTERS § 14 day period to inform of vacancy § Definition of “declared elected” § Allocation of excessive seats § Party lists – timeframes 2. GOVERNANCE MATTERS § Abolition of plenary-type municipality § Use of geographical size to determine number of cllrs § Functions of Speakers § Office of the Whip; § MPACs § Quorums and decisions

3. OTHER MATTERS § Removal of reference to District Management Areas § Migrate Section 85(4) of the Structures Act § Migrate Items 2 to 5 of the Structures Act § Migrate Schedule 1 of the Systems Act to the MSA

PROPOSED AMENDMENTS TO THE MSA: H-LO

q Electoral-related amendments to Sections 1, 22, 25, Schedule 1 – Items 16, 17, 18, 20, Schedule 2 – Item 10. q Governance-related amendments:

• Abolition of the Plenary-type municipality;
• Deviate by more than 20% for determining number of Cllrs in

municipalities greater than 20 000 square kilometres; and

• Minimum of 15 Cllrs in a municipality (local).

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PROVISION PROPOSED AMENDMENTS Amend Section: 20 D e t e r m i n a t i o n o f number of councillors § Section 20 is amended by inserting a new 4A, as follows: “A deviation in terms of subsection (3) may be no more than 20% if the geographical size of the municipality is greater than 20 000 square kilometres, if less than 35 councillors have been determined for the municipality in terms of the formula.” § Northern Cape has requested that there be a minimum of 15 councillors in a municipality. COMMENTS § The main aim of this amendment is to deepen democracy by: (i) Addressing the geographical spatial patterns in a municipality by prescribing a minimum number of councillors, which will also result in municipalities have a minimum of 8 wards; (ii) deepen democracy in instances where fewer councillors have been determined in large municipalities – see next slide for affected municipalities (9); and (iii) See slides-after-next that indicate the 40 municipalities that will be affected by the minimum of 15 councillors in a municipality; and (iv) ensuring that in large areas, an MEC may deviate by 20% of the number of councillors determined by formulae that the Minister prescribes, after taking into account the budget and the category of a municipality (note the financial implications).

PROPOSED AMENDMENT TO SECTION 20

NO. LOCAL MUNICIPALITY AREA (SQ. KM)

• NO. OF

VOTERS CLLRS (WARDS) “NEW” CLLRS (WARDS)

• 1. Dawid Kruiper (NC)

44,610.77 55,259 31 (16) 37 (19)

• 2. Hantam (NC)

39,493.63 12,986 9 (0) *10 (8)

• 3. Karoo Hoogland (NC)

30,445.55 6,981 7 (0) *8 (8)

• 4. Dr Beyers Naude (EC)

28,684.39 39,319 27 (14) 32 (16)

• 5. Kai !Garib (NC)

26,626.20 29,489 19 (10) 22 (11)

• 6. Kagisano/Molopo (NW)

23,871.47 51,273 29 (15) 34 (17)

• 7. Beaufort West (WC)

21,988.08 25,159 13 (7) 15 (8)

• 8. Ubuntu (NC)

20,447.32 9,356 7 (0) *8 (8)

• 9. Joe Morolong (NC)

20,246.34 50,926 29 (15) 34 (17) * Minimum of 15 Cllrs will apply

• City of Johannesburg: 1,644 sq. km
• Gauteng Province: 18,176 sq. km

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PROPOSED AMENDMENT TO SECTION 20

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# LOCAL MUNICIPALITY

• SQ. KM
• REG. VOTERS NO. OF

CLLRS

• NO. OF

WARDS

• 1. Karoo Hoogland

30,445.55 6,981 7 4

• 2. Ubuntu

20,447.32 9,356 7 4

• 3. Kareeberg

17,783.04 7,241 7 4

• 4. Khai-Ma

15,922.38 7,071 7 4

• 5. Kamiesberg

14,454.84 7,054 7 4

• 6. !Kheis

11,173.93 9,279 7 4

• 7. Richtersveld

9,826.29 7,219 7 4

• 8. Laingsburg

8,846.60 4,299 7 4

• 9. Prince Albert

8,188.31 6,877 7 4

• 10. Thembelihle

8,036.23 8,633 7 4 11 Renosterberg 5,533.13 6,075 7 4

• 12. Kannaland

4,794.42 13,667 7 4

• 13. Kgatelopele

2,483.16 9,136 7 4

• 14. Impendle

1,611.08 15,742 7 4

• 15. Tokologo

9,324.53 13,442 8 4

• 16. Hantam

39,493.63 12,986 9 5

• 17. Siyathemba

14,783.16 11,689 9 5

• 18. Mpofana

1,758.97 15,357 9 5

• 19. Magareng

1,546.96 11,923 9 5

• 20. Blue Crane Route

11,066.08 17,851 11 6

• 21. Letsemeng

9,829.88 18,973 11 6

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• 23. Cederberg

8,116.37 23,268 11 6

• 24. Umsobomvu

6,813.92 14,434 11 6

• 25. Swellendam

3,866.14 17,124 11 6

• 26. Kou-Kamma

3,645.62 19,533 11 6

• 27. Emadlangeni

3,545.91 13,221 11 6

• 28. Cape Agulhas

3,502.81 18,672 11 6

• 29. Dipaleseng

2,644.45 20,917 12 6

• 30. Beaufort West

21,988.08 25,159 13 7

• 31. Tsantsabane

18,362.78 17,539 13 7

• 32. Siyancuma

16,793.08 19,086 13 7

• 33. Dikgatlong

7,323.77 22,344 13 7

• 34. Bergrivier

4,470.18 24,948 13 7

• 35. Gamagara

2,656.02 20,390 13 7

• 36. Great Kei

1,698.91 17,224 13 7

• 37. Endumeni

1,613.13 27,072 13 7

• 38. Bitou

993.76 25,873 13 7

• 39. Richmond

1,233.44 30,813 14 7

• 40. Mkhambathini

870.30 27,851 14 7

• 41. Kopanong

15,640.00 25,636 15 8

• 42. Emthanjeni

13,492.24 22,468 15 8

• 43. Matzikama

13,182.89 28,100 15 8

• 44. Phumelela

8,199.31 25,356 15 8

• 45. Tswelopele

6,520.73 25,045 15 8

• 46. Emakhazeni

4,743.27 26,529 15 8

• 47. Kgetlengrivier

3,969.96 21,015 15 8

PROPOSED AMENDMENTS TO THE MSA: H-LO

q Governance-related amendments:

• When a Cllr is removed from office by an MEC, such Cllr may
• nly be eligible to stand as a candidate after two years;
• A person designated by the MEC must call a meeting when the

Speaker / Acting Speaker refuses to do so;

• Confirmation of Quorums;
• Casting vote of a Presiding Cllr;
• Strengthening the role of the Speaker;
• Establishment of the Office of the Whip; and
• Establishment of Oversight Committee (MPAC).

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PROVISION PROPOSED AMENDMENTS Section 30: Quorums and decisions § The proposed amendment confirms that the number to be considered to determine the quorum in a meeting must be the number of councillors as determined by the MEC in terms of section 12 of the Structures Act (the Section 12 Notice). § Reading-in of the words “…other than a matter mentioned in section 160(2) of the Constitution,” in section 30(4) of MSA. COMMENTS This amendment is aimed at: § Confirming the number to be considered to determine the quorum and that the number must be the number of councillors as determined by the MEC when the municipality was established (in terms of section 12 of the MSA); § Further, in the matter before the Constitutional Court between the MEC for LG from the Western Cape Province (applicant) and the Minister (as one of four respondents), the Court confirmed on 18 August 2015 that the councillor presiding at a meeting may not have a casting vote when considering matters mentioned in section 160(2) of the Constitution. These matters are the: (a) Passing of by-laws; (b) Approval of budgets; (c) Imposition of rates and

• ther taxes, levies and duties; and (d) Raising of loans.

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PROPOSED AMENDMENTS TO THE MSA: H-LO

q Governance-related amendments (continued):

• Strengthening the Composition of EXCOs:

§ Council to “determine” the number of Cllrs, in terms of a prescribed formula; § Political Parties must nominate their representatives to occupy EXCO seats;

• Strengthening the Functions and Powers of EXCOs (… only reports

from Section 80 Committees may be submitted to EXCO);

• Strengthening the Functions and Powers of EMs (… only receive

reports from Section 80 Committees); and

• Municipalities must establish ward committees within 120 days;

q Other:

• Refinement of Sections 12 and 16;
• Migration of provisions from the MSA to the Demarcation Act:

§ Section 85(4) – Capacity Assessments; § Items 2 to 5 in Schedule 1; and

• Migration of Schedule 1 of the MSystA to the MSA (Code of Conduct

for Cllrs).

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PROVISION PROPOSED AMENDMENTS Section 79: Establishment § A new Section 79A be inserted to provide as follows: “79A Establishment of oversight committee (a) A municipality must establish a committee called the Municipal Public Accounts Committee; (b) The Speaker, Mayor, Deputy Mayor, other members of the Executive Committee, and municipal officials are not allowed to be members of such committee; (c) The municipal council must determine the functions of the committee, which must include the following— (i) Ensure that the municipal resources are used effectively and efficiently and that deviations are reported to the council; (ii) Review the A-G reports together with comments from Management and the municipal Audit and make recommendations to council; (iii) Review Internal Audit reports together with comments from Management and Audit Committee and to make recommendations to the municipal council; (iv) Initiate and develop the Oversight report as part of the Annual report as required in terms Section 129 of the Local Government: Municipal Finance Management Act No. 56 of 2003; (v) Attend and make recommendations to the municipal council on any relevant matter referred to it by the municipal council, executive committee, a Portfolio Committee, a member of this committee, a councillor and the Municipal Manager; and (vi) On its own initiative, investigate and report to the municipal council on any relevant matter affecting the municipality. (d) Reports of the Committee must be submitted to the Speaker who must table such reports in the next meeting of the municipal council.”

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COMMENTS (SECTION 79: ESTABLISHMENT OF MPACS) § The proposed amendment is to strengthen oversight and promote governance in municipalities; § The amendment will indicate which councillors may be members, and will provide for their roles and responsibilities; and § Importantly, reports of the MPAC must be submitted to the Speaker who must table such reports in the next meeting of the municipal council.

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UP UPDATE: : MStrA

§ All compliance requirements processed and finalised. § Bill introduced into Parliament. § A briefing session will be held with the Portfolio Committee

• n 13 March 2018.

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TIMEFRAMES FOR PROCESSING THE MUNICIPAL STRUCTURES BILL

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q The table below indicates the proposed timeframes for processing the Bills:

NAME OF THE BILL STATUS OF OR DATE FOR OBTAINING LEGAL OPINION SEAIS STATUS OR DATE FOR SEIAS PROCESS DATE FOR FOSAD CLUSTER CONSULTATION FOR FURTHER PROCESSING BY CABINET DATE FOR TABLING THE BILL BEFORE CABINET INTRO TO PARLIAMENT Public consultation

• Intro. to

Parliament Public consultation

• Intro. to

Parliament Local Government: Municipal Structures Amendment Bill § Previous Bill was certified by the OCSLA on 10 Apr 2016. § F u r t h e r a m e n d m e n t s being proposed to the Structures Act. § Revised Bill to be submitted to the OCSLA by Mar 2017. § Final Impact Assessment

• btained on

20 Jan 2016 § R e v i s e d SEIAS to be

• b t a i n e d

(during Apr/ May 2017) Jun 2017 Oct 2017 July 2017 Nov 2017 Nov / Dec 2017

PROPOSED AMENDMENTS TO THE MUNICIPAL DEMARCATION ACT: HIGH-LEVEL OVERVIEW (H-LO)

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PROPOSED AMENDMENTS TO THE MDA: H-LO

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1. MDB § Establishment, functions and general powers of Board § Membership of Board § Operating procedures

• f Board

ADMINISTRATIVE AND OTHER MATTERS § Administration § Finances of Board § Miscellaneous matters 2. DEMARCATION § Determination of boundaries § Work programme § When boundary determination takes effect § Demarcation objectives § Factors to be taken into account § Public notification of determinations § Consideration by Board § Public meetings § Formal investigations § Powers of investigating committees § Demarcation affecting existing municipalities

• 3. OTHER

Migration of demarcation-related provisions from the Structures Act to the Demarcation Act (Section 85(3); Schedule 1, Items 2 to 5)

PROPOSED AMENDMENTS TO THE MDA: H-LO

q The amendments to the Demarcation Act are based on proposals submitted to the DCoG by the Municipal Demarcation Board. These proposals are informed by the following: q Inputs from the previous Boards; q Demarcation Process Review Task Team Report; q Lessons learnt by the current Board from previous re-determinations; q Litigations; q Legislative gaps; q Inputs from stakeholders; q Case law applicable to MDB; q State law advisor’s opinion on the independence of the MDB; q Inputs from the conference on Demarcation and Spatial Transformation; and q Local Government Technical Legislative Review Workshop. q An analysis of each section of the Demarcation Act was undertaken. q The proposals are intended to ensure greater participation by citizens, as well as define the roles of various stakeholders. q Due to the many amendments that are being proposed, the Act will be repealed and replaced.

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PROPOSED AMENDMENTS TO THE MDA: H-LO

q DEFINITIONS § To provide for the differentiation of the Board and the organisation itself (including employees) as is not clearly defined in the current existing legislative provision. q MUNICIPAL DEMARCATION BOARD § Part 1: Establishment, functions and general powers of Board

• Expanding the advisory role of the MDB to make recommendations to Parliament
• n provincial boundaries.
• Enabling the Board to source additional funding for specific projects.

§ Part 2: Membership of the Board of Directors:

• Members must have a qualification or relevant experience / knowledge in IT.
• Increasing the term of office to from 5 to 7 years and limit the term to a

maximum of two.

• Board members to be part-time with the exception of the Chairperson and the

Deputy Chairperson.

• Provide for deciding / casting vote by the Board Chairperson when a simple

majority is not achieved.

• A Board’s selection panel to also include a representative of the National House
• f Traditional Leaders designated by the Chairperson of the National House of

Traditional Leaders.

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PROPOSED AMENDMENTS TO THE MDA: H-LO

§ Part 3: Administration and staff matters:

• Responsibilities of CEO to be aligned to responsibilities of the Accounting Officer as

per the PFMA. § Part 4: Finances

• These sections deal with funding of the board; accountability and auditing of the

board’s funds. q DEMARCATION § Part 1: Demarcation Criteria:

• Add 24(e) stating that when the Board determines a municipal boundary its objective

must be to establish an area that would have the capacity to execute any other function in line with Minister’s and the MEC of local government’s allocated powers and functions in accordance with the Local Government: Municipal Structures Act, 1998.

• The following factors must be added to section 25 when demarcating municipal

boundaries: ü (m) common geo-statistical building blocks, which facilitates and supports a standard geographical hierarchy; ü (n) relevant national development policies and plans which might impact on the nature of local government and its boundaries; ü (o) relevant policies and legislation relating to the institutional or functional reorganisation of local government; and ü (p) natural endowments, resources, assets, business investments and other drivers of economic growth must be taken into account when determining municipal boundaries.

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PROPOSED AMENDMENTS TO THE MDA: H-LO

§ Part 2: Municipal boundary determination:

• New section aimed at entrenching and strengthening public consultation and

participation in the municipal demarcation processes has been inserted. The purpose is to minimise costly litigations arising from dissatisfaction with municipal boundaries determinations. § Part 3: Municipal Ward Delimitation:

• Aimed at migrating these matters from MSA into MDA.

§ Part 4: Demarcation Appeals Authority:

• Provide for the establishment and constitution of the Demarcation Appeals
• Authority. The purpose is to provide an alternative institution for the

communities to approach if they are dissatisfied with the MDB’s municipal boundaries determinations rather than resorting to costly litigation processes. q MUNICIPAL CAPACITY ASSESSMENTS

• This is aimed at being more specific on how the Board should conduct section

85 (4) assessment in terms of MSA and migrate to the MDA as it forms the core function of the Board. q MISCELLANEOUS § Provision is made for the Minister to make regulations or issue guidelines not inconsistent with the Act.

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UP UPDATE: : MDB

§ DPME provided SEIAS pre-certification of the Bill on 19 July 2017. § Bill obtained from Legal Services on 3 August 2017. § Final input on Memorandum on the Objects of the Bill (MOOB) received from the Municipal Demarcation Board on 1 September 2017. § Bill presented to the LG MinMEC on 8 August 2017.

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UP UPDATE: : MDB

§ MOOB is being finalised, whereafter it will be submitted to Legal Services for incorporation of further inputs, and

• nward submission to the OCSLA for pre-certification.

§ Bill will be submitted to the G&A Working Session after it is received from the OCSLA. § Then (for approval for publication for public comments) –

• G&A Directors-General Cluster.
• G&A Cabinet Committee.

§ Some of the proposed amendments have an impact on preparations for the LGE 2021 (which preparations commence in 2018 – i.e. ward delimitation)

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PROPOSED REVISED TIMEFRAMES FOR PROCESSING THE DEMARCATION BILL

30

q The he table ble belo below indica indicates es the he pr propos

• posed

ed revis ised ed timef imeframes ames for

• r pr

proces

• cessing

ing the he MDB: :

NAME OF THE BILL STATUS OF / OR DATE FOR OBTAINING LEGAL OPINION SEAIS STATUS OR DATE FOR SEIAS PROCESS DATE FOR FOSAD CLUSTER CONSULTATION FOR FURTHER PROCESSING BY CABINET DATE FOR TABLING THE BILL BEFORE CABINET INTRO TO PARLIAMENT Public consultation

• Intro. to

Parliament Public consultation

• Intro. to

Parliament

• 2. Local

Government: Municipal Demarcation Amendment Bill § To be submitted to the OCSLA by October 2017 (for public comments) § To be submitted to the OCSLA by April / May 2018 (for introduction into Parliament) § Pre- certification

• btained on

19 July 2017 § Final certification to be obtained April 2018 June 2018 September 2018 November 2018 December 2018

3.

UPDATE ON PROGRESS AND ISSUES RAISED ON REGULATIONS FOR SENIOR MANAGERS (UPPER LIMITS)

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Update on progress of the review of Notice on upper limits for senior managers

• The Department is currently reviewing 2017/18 Notice on upper

limits of total remuneration packages payable to senior managers anticipating to publish Notice on or before 31 March 2018.

• During the CoGTA MinMEC held on 20 April 2017, it was

resolved that the DCoG must initiate a process to review the remuneration and conditions of employment of senior managers to enable municipalities to attract and retain suitably qualified and competent senior managers.

• The Department is in the process of appointing remuneration

experts/ service providers for the determination of market related salaries for municipal managers and managers directly to municipal managers.

• The findings of the study will be implemented during 2019/20

financial year Notice.

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Update on progress of the review of Notice on upper limits for senior managers

• In order to provide sufficient tools to enable remote municipalities

to attract and retain persons with professional and technical skills, the Department is reviewing list of municipalities submitted by the MEC, if they are eligible for payment of remote allowance. Payment of remote allowance is reviewed.

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4.

Management of competency assessment for senior managers

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COMPETENCY ASSESSMENT

q Circular 24 of 2017 - Multi-year transversal term contract for establishment of provincial panels of service providers to provide competency assessment services q Circular issues to all municipal managers – § To apprise them about progress on the establishment of a multi-year transversal term contract § To obtain written consent from municipalities to participate in the transversal contract § To provide transitional measures for the implementation of the competency-based assessments for senior managers

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COMPETENCY ASSESSMENT

q PROCUREMENT OF EXPERT SERVICES Due to the complex and technical nature of competency assessments and in order to ensure compliance with the legal imperatives as set out in in sections 54A and 56 of the Systems Act, especially the need to ensure that the competency requirements are uniformly enforced, the Department trained and accredited four service providers q NEED FOR A TRANSVERSAL TERM CONTRACT Participation in a contract arranged by national government in terms of section 32 of the Municipal Supply Chain Management Regulations, 2005 Department working in collaboration with the Chief Directorate: Strategic Procurement in the Office of the Chief Procurement Officer (National Treasury) has identified a need for a transversal term contract.

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COMPETENCY ASSESSMENT

q NEED FOR A TRANSVERSAL TERM CONTRACT National Treasury will advertise the bid in the National Tender Bulletin and facilitate a transversal term contract for establishment of Provincial Panels of Competency Assessors. This process will be trailed by the training and accreditation of competency assessors, which are registered in the Central Supplier Database (CSD) maintained by the National Treasury to avoid an influx of ill-qualified service providers from gaining access to the sector. The Department will not award contracts on behalf of municipalities but will prequalify the service providers. Every municipality and where applicable, municipal entities, will on an “as and when” basis embark on bid processes to appoint a competency assessor or multiple competency assessors from the relevant pool of pre-qualified provincial panel of competency assessors.

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COMPETENCY ASSESSMENT

q NEED FOR A TRANSVERSAL TERM CONTRACT The purpose of the bid is to provide municipalities with standardised competency assessment tools that conform to the prescribed competency requirements. The strategic sourcing process requires that written prior consent be obtained from municipalities to participate in the multi-year transversal contract.

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5.

SUPPORT TO AMALGAMATED MUNICIPALITIES

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SUPPORT TO AMALGAMATED MUNICIPALITIES

q To financially support the newly amalgamated municipalities in the various transition processes, the NT established the MDTG in 2015/2016 for the Medium Term Expenditure Framework (MTEF) of three years ending in the 2017/2018 FY. q The purpose of the grant is to assist municipalities whose boundaries were redetermined by the Municipal Demarcation Board (MDB) during 2013 and 2015 with the additional institutional and administrative costs arising from the major boundary changes that came into effect after the 2016 local government elections. q For the 2016 / 2017 and 2017 / 2018 FY, an amount of R409, 278 million was appropriated for the MDTG. It replaced the R139 million that was identified in the previous FY where major redeterminations finalised by the MDB during 2013 and 2015. q In terms of the Division of Revenue Act, 2016 (“the DoRA”) the amount

• f R297, 422 million was set aside for the 2016 / 2017 FY, and the

remaining balance of R111, 856 million for the 2017/2018 FY. q The entire allocation amounting to R297, 422 million that was set aside for the 2016 / 2017 FY was transferred in tranches to the recipient pre- election municipalities during July 2016 and to the post-election municipalities during December 2016 and March 2017.

40

SUPPORT TO AMALGAMATED MUNICIPALITIES

q In terms of the DoRA, as the MDTG ends in 2017/18, the DCoG is required to prepare a phase-out report on the grant and submit it to Parliament. q In terms of the DoRA, municipalities must also report to the DCoG and the relevant provincial department on a monthly basis

• n financial performance and on a quarterly basis against the

performance targets set out in the business plans. q However, the DCoG has been experiencing challenges in receiving the reports from the affected municipalities and also noted with concern the lack of spending and non-reporting by most of these amalgamated municipalities. q In preparation for developing the close-out report to Parliament and to improve reporting in ensuring compliance by provinces and municipalities, the DCoG will continue to engage the affected provinces and municipalities to ensure that expenditure is incurred within the framework that has been developed, and reporting is done fully in compliance with the DoRA.

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TABLE 1: NATIONAL OVERVIEW OF MDTG ANNUAL EXPENDITURE PER PROVINCE 2016 / 2017 FINANCIAL YEAR

PROVINCE ENTIRE ALLOCATION (2016/2017 FY) EXPENDITURE Q1 EXPENDITURE Q2 EXPENDITURE Q3 EXPENDITURE Q4 OVERALL EXPENDITURE %age EXPENDITU RE

GP (1)

9 714 000 221429 25 22 387 19 011 520 3 333 029 47 788 365 49%

FS (1)

13 428 000 282 736 624 913 330 825

• 1 238 474

9,2%

MP(1)

13 428 000 55 541 1 015 279 2 250 211 4 659 314 7 980 345 59,43%

NW (1)

13 428 000 861 602 3 868 918 262 469

• 4 992 989

37,18%

NC (1)

13 429 000

• 108 211

1 231 457 1339668 9,98%

EC (4)

67 142 000 2884147 777842 4 496 358 3 563 556 11721903 17,46%

KZN (7)

72 856 000 9 026 129 7 170 972 993 994 6 760 679 23 951 774 32,88%

LIM (9)

93 987 000 2 433 638 7 688 470 13 571 343 10 171 551 33 865 002 36,03%

TOTAL

297 412 000 15765222 23 668 781 41 024 931 16 932 230 93 068 520 31,29%

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SUPPORT TO AMALGAMATED MUNICIPALITIES

q The DCoG is monitoring the finalisation transitional processes through Transition Monitoring Schedule (TMS) that was developed by the DCoG. q The TMS schedule addresses the following areas:

43

SUPPORT TO AMALGAMATED MUNICIPALITIES q Provinces were requested to ensure that municipalities submit the TMS schedules on a quarterly basis and reports in compliance with the DoRA requirements. q Provinces were further requested to provide the DCoG with the schedules of meetings planned with the municipalities to address these matters. q Provinces have not taken-up the support that was to be provided by the DCoG.

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6.

RECOMMENDATIONS

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RECOMMENDATIONS It is recommended that the 12th National Municipal Managers Forum: q Notes the amendments that are being proposed to the LG: Municipal Structures Act and the LG: Municipal Demarcation Acts; q Notes the poor reporting on the MDTG; and q Relevant Municipal Managers ensure that the Monthly and Quarterly reports are timeously submitted in the prescribed format to the DCoG.

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Thank You!

You Thank Angithi- Ke