Minister's briefing on Department's Objectives and Strategy for 2001/2
Cooperative Governance and Traditional Affairs
08 May 2001
Meeting Summary
A summary of this committee meeting is not yet available.
Meeting report
PROVINCIAL AND LOCAL GOVERNMENT PORTFOLIO COMMITTEE; LOCAL GOVERNMENT AND ADMINISTRATION SELECT COMMITTEE: JOINT MEETING
8 May 2001
BUDGET REVIEW BY MINISTRY AND DEPARTMENT
Chairperson: Mr Y I Carrim
Relevant Documents
2001 Estimates of Budget Expenditure
Budget Review - Chapter Seven: Provincial and Local Government
Department’s Report on Activities for the 2001/2 Financial Year (see Appendix)
SUMMARY
The Minister of Provincial and Local Government addressed the Committees on the development objectives for the forthcoming financial year. Key issues addressed by the Minister were the future of traditional leaders as well as the future of the provinces after comments made in the press that provinces might be restructured. The Department of Provincial and Local Government briefed the Portfolio and Select Committee on its financial strategy for the forthcoming financial year. The main issues raised by members were the progress that the department had made in ensuring co-operative governance, the distribution of the Equitable Share as well as the identification of households in need of basic services.
MINUTES
The Chairperson welcomed the Minister of Provincial and Local Government, Mr S Mufamadi, the Director General, Mr Z Titus, as well as other members of the Department.
Minister’s Address
Mr Mufamadi, Minister of Local and Provincial Government, presented development objectives for the forthcoming financial year.
The Minister stated that the Ministries programmes aimed to address five main development objectives - stabilising and consolidating systems of Local Government; the integration of municipal systems under the Municipal Systems Act, support for newly established Local Government structures; strengthening of inter-governmental relations and the implementation of government strategies for urban renewal and integrated rural strategies.
Mr Mufamadi re-iterated the policy thrusts arising from the State President's State of the Nation address, namely development, establishing an economic growth path and urban renewal and rural development. He said that Local government was vital for these objectives and that the Portfolio Committee had played a vital role in this in helping the ministry thus far. He also said that the Department is indebted to other agencies such as the South African Local Government Association (SALGA), the Independent Electoral Commission, other national ministries, Municipal Demarcations Board, Independent Development Trust as well as the provinces. He said that it was the most recent SALGA conference that signposted the direction for Local Government transformation.
Mr Mufamadi said that a sphere of Local Government had been created that has its own functional integrity, rather than limited to an administrative role.
Mr Mufamadi said that the discussion of the day was likely to have an enduring affect on the shape of government. He said that the Department is structured to deal with the conditions and challenges facing the country and seek to work with the Portfolio Committee in achieving its objectives.
Discussion
Mr P Smith (IFP) said that there is a need to consolidate and stabilise Local Government. He asked if the Minister sees a solution to the crisis between traditional authority and government structures.
Mrs G Borman (DP) asked how the minister sees the future of the provinces in the light of recent comments made by Premier Stofile of the Eastern Cape.
Mr M Bhabha (ANC) (Mpumalanga) reminded the minister that this was a joint meeting and that the Select Committee was present.
Mr B Solo (ANC) asked if the minister could enlighten the committee further on the vision and strategy planning for the Urban Renewal Strategy (URS) and the Integrated Rural Development Strategy (IRDS) and asked what budgetary provisions are being made to ensure the success of these programmes.
The Chair said that this was an important question and constitutes the theme for the next few days.
An NP member asked about the progress on the redrawing boundaries for B and C category municipalities.
The Chair said that this question could be put to the Demarcation Board when they address the Committee next week.
The Minister, in response to perceived tensions between traditional leaders and government said that he does not believe that there is a crisis. After meetings last year with the select committee and the portfolio committee, Cabinet established a cabinet Committee to address this matter. Once the Cabinet Committee had presented a draft bill to Cabinet, the Cabinet decided to consult stakeholders including a delegation of Traditional Leaders, National Land Commission, Commission for Gender Equality, Cosatu and Sanco. He said while not all stakeholders were completely happy about the bill, encouraging feedback was received from the stakeholders and that the draft bill will be refined in cabinet, taking all stakeholders into account.
The Minister added that this is a democratising society and that traditional leaders are by definition conservative as they are the custodians of tradition and culture. He said that they therefore have the potential to fetter democracy and that their authority would have to be transformed in order for democratisation to take place. This transformation is the collective responsibility of the executive and legislature, rather than just between the executive and traditional leadership.
He said that the matter was an important one in that it goes to the heart of democratising the country. He re-iterated however, that there is no crisis. He said that is it certainly not his wish for a crisis.
On the future of the provinces in the system of government, the minister said that he would be surprised if one sphere of government was chosen. He said that a multi-faceted system of government was chosen in keeping with global trends.He said that it was felt by some at CODESA that provinces were unnecessary. The old provinces were political boundaries, whereas the new provinces are developmental boundaries. He said that developmental considerations are asking us to rethink our boundaries as it is something of an anomaly that some Local Government boundaries straddle provincial boundaries. He said that this anomaly will be addressed. He added that while some may feel that the existing provincial boundaries are inimical for development, the idea of provincial sphere of government it self was not the issue. He added further that provincial as well as municipal boundaries were not cast in stone.
In response to Mr Bhabha, the minister said that he was mindful of the jointness of the meeting.
Mr P Smith (IFP) responded to the urging of the Minister that there was no crisis, saying that he was rather intrigued by the minister's comments. He said that promises made to traditional leaders had not been fulfilled. He quoted the statement of traditional leaders during the stakeholder consultaions mentioned by the minister that said that traditional leaders "reject this bill and are at the end of their tether". He said that the minister should be aware that this could lead municipal governemt to grind to a halt in some of the provinces. He added that if the Minister does not think that this precipitated a crisis, he would be fascinated to know what the Minster thinks is a crisis.
Mr C Ackerman (NNP) (Western Cape) said that the issue of boundaries is a highly political one and it was therefore necessary that all parties and stakeholders should be informed what decisions were being made in this regard.
An ANC member said that she does not see the matter as a crisis. She asked about the audit of Traditional Leaders as part of the perceived crisis is that we don't know who are traditional leaders and who are not.
Ms G Borman (DP) asked if the traditional leadership sructure will be completely re-worked.
Mr Mufamadi said that he is intrigued by the alarmism demonstrated by Mr Smith and repeated that there is no crisis. He said that while there is not agreement between traditional leaders on all issues, there is now a bill that seeks to address the role of traditional leaders while continuing with the process of formulating policy.
In respones to Mr Ackerman's comments on provincial and municipal boundaries, the Minister said that the matter is political, but the so is everything discussed here. He said that the government is doing work on the issue of the provinces and that he assumes that Mr Ackerman's party is also doing work on this. He said that other parties should not be waiting for government.
Mr Ackerman replied that he was asking for information, that is all.
The Chair ended the discussion by saying that the separation of powers needs to be enforced as well as constituencies. He thanked the Minister and suggested that Mr Bhabha (Chair of Select Committee) chair the second half of the meeting as he felt that it would be more productive for the two committees to work jointly. Mr Bhaba said that this would be inappropriate as the Constitution did not allow for Select Committee Chairs to chair joint meetings.
Budget presentation
The Director General of the Department of Provincial and Local Government, Mr Z Titus introduced representatives of the Department:
Deputy Director General- Mr E Africa (Governance and Development)
Deputy Director General- Ms J Manche (Institutional Reform and Support)
Deputy Director General- Mr G Mokate (Support Services)
Chief Director of Finance- Mr C Clerihew
Director of Intergovernmental Relations: Co-ordination and Implementation- Mr D Powell
Director of Intergovernmental Relations: Research- Dr A Botha
Director of Infrastructure Implementation- Mr R Kruger
Director of Development planning and Local Economic Development- Ms S Magwaza
Mr Titus said that the key issue being addressed was what it means to cut the budget. He said that it is not just about figures, but implementation of policy, government strategy plus a myriad of other issues. He handed over to Mr C Clerihew to take the committee through Budget vote 5.
Mr Clerihew went through the document (Report on Activities to Portfolio Committee for the 2000/01 financial year) explaining the budgetary strategy of the Department. (see appendix for document)
Discussion
Ms G Borman (DP) thanked the Department for the amount of work put into the presentation. She said that the way that she understands equitable share is that it is designed to assist communities who cannot afford to pay for basic services. She asked if the equitable share figures were costed or if they were ad hoc figures.
An ANC member asked how far the Department was in restructuring. She said that the all in the Committee were aware of the challenges of restructuring. She asked if the department could give the Committee an assessment of the Department. She also asked what the policy of gender equality was in the Department given that out of ten Department representatives introduced today only two were women.
An NP member asked why so much money was being given to Public Works.
An ANC member asked the progress of the Local Economic Development fund and asked what municipalities must do in order to access these funds.
Ms Manche, one of the Deputy Director Generals said that the current estimates for the equitable share are in a draft form. She said that the department had arrived at a figure off R86.00 per household.
The Chair asked if the Department could tell the committee on the progress of providing free electricity.
Mr Titus replied that as south Africa is a large country, pilot areas will be identified first to receive free electricity. He said that this issue resides in the Mineral and Energy affairs portfolio who had given the Department their workplan, indicating that everything is on course. He added that some municipalities have started already.
The Chair asked how many municipalities were to receive free basic services. He asked if it was just the poor who were entitled to the delivery of basic services or if everyone was. He also asked what the restructuring of Eskom meant for delivery.
Ms Borman (DP) asked if the department was in a position to know exactly which households were entitled to the R86.00.
Mr A Lyle (ANC) asked if the benefits to the poor were accumulative.
An ANC member said that development is only seen to be occurring in established or in other words, white areas. When people see an RDP house, they feel that development is being achieved even though it is not comparable to the development of white areas.
In response to Ms Borman's question, Ms Manche said that pilot areas had not been identified yet. She said that the delivery of water was more advanced than electricity at this stage. She said that it will be a staggered exercise and that capacity will be built in the weaker areas.
In response to the restructuring of the Department, Mr Titus said that the Department will release a document the following day to show how the Department is restructuring. He said that the Department is aware of the imbalances and that a clear policy framework had been developed to address this. He said however, that it is a simple fact that imbalance exists. He said that the issue should be deferred until tomorrow when the document is distributed.
In response to the money being spent on Public Works, Mr Clerihew said that a community-based Public Works programme will provide community based job creation and poverty alleviation. Mr Africa added that a Public Works programme is established and that the national Treasury makes the final decision in this regard. He said that new programmes are being monitored before they are fully implemented.
Mr M Bhabha (ANC) said that he feels that it is logical that municipal workers be brought into the public service sector and asked what developments were taking place in this regard. He also asked if there was any way of monitoring the manner in which grants are being spent.
Mr Titus said that there had been some debate over who should benefit from free basic services and whether well-off people should be brought into the net. He said that he was uncertain whether the debate had been finalised.
In response to municipal workers being brought under the umbrella of the Public Service Act, Mr Titus said that the issue had been misreported in the press. He said that the Cabinet had said that the pros and cons of putting municipal workers under the act should be investigated and suggested that members raise the issue with Cabinet.
Mr J Kgarimetsa (ANC) asked for clarity over municipalities applying for funds and asked what role the department plays in ensuring that a particular municipality gets help. He also asked the extent of the role that the Department plays in ensuring co-operative governance.
The Chair said that Mr Kgarimetsa's second question was particularly important and a question that vitally needs to be addressed. He said that a key question was the degree of progress that the department had made in securing co-operative government. The Chair also asked how the Public Finance Management Act had affected the department. The Chair added that this parliament was becoming one of the most user-friendly in the world thanks to the Treasury's guidelines on how budgets are presents to Committees.
An ANC member noted that there had been a reduction in funds for disaster management by 200%. He asked how the Department decided that disasters had become more manageable.
Ms Borman commented that attempting to locate the poor in every area would be a costly exercise and that it would be cheaper to provide water across the board.
Ms J Manche that the equitable share is monitored by the Department and that each provincial department has to report what it is used for. She said that each municipality is assessed by its population and a measurement of poverty, which is presently based on income per household, but may change to expenditure. At the moment hose-hols that earn less than R800 per month are defined as poor. Ms Manche said that it cost-effective to target municipal areas rather than individual households.
With regards to ensuring co-operative governance and municipalities applying for funds, Ms Manche said that sometimes municipalities do not respond which indicates capacity problems She said that the Department has however been able to identify such municipalities and put support programmes in place in over 170 municipalities.
The Chair said that there must be other ways of steering money into the right areas and that something needs to be done in this regard.
Mr Manche said that the Department is in the process of finalising guidelines for the delivery of the three basic services to be distributed to municipalities that will help them to formulate their budgets.
Mr Africa said that the problems in ensuring co-operative governance are in three broad areas. The first is in the area of policy and legislation. He said that the Department is looking at constitutional guidelines and reviewing legislation. The second problem is that there are different structures in government and it not always certain which structure is in the charge of which department. The third problem is in the area of identifying key delivery areas and programmes as some are duplicated.
Mr Titus added that the solution to co-operative governance is not in the constitution but rather in legislation such as the Systems Act. He added however that the Budget Review Document is a fantastic example of co-operative governance. With regards to disaster management, he said that the Department has been discouraged form budgeting for disasters, but that a framework document was being prepared to address this problem.
The Chair thanked the Department and adjourned the meeting.
Appendix:
DEPARTMENT OF PROVINCIAL AND LOCAL GOVERNMENT
REPORT ON ACTIVITIES TO PORTFOLIO COMMITTEE FOR THE 2000/01 FINANCIAL YEAR
1. UNAUDITED BUDGET OUTTURN
1.1 Expenditure by Programme
| Original Budget | Adjust-ments Budget | Total Budget | Expen-diture | Variation |
| R'000 | R'000 | R'000 | R'000 | R'000 |
| 23 477 | 3 075 | 26 552 | 23 159 | 3 393 |
· Governance and Development | 18 035 | 3 845 | 21 880 | 11 919 | 9 961 |
· Institutional Reform and Support | 3 496 413 | 168 825 | 3 665 238 | 3 579 433 | 85 805 |
· Auxiliary and Associated Services | 95 648 | 3 373 | 99 021 | 98 367 | 654 |
TOTAL | 3 633 573 | 179 118 | 3 812 691 | 3 712 878 | 99 813 |
1.2 Expenditure by Standard Item
Personnel | 35 389 | 3 889 | 39 278 | 30 976 | 8 302 |
Administrative | 15 635 | 11 685 | 27 320 | 15 717 | 11 603 |
Inventories | 5 515 | 1 626 | 7 141 | 4 799 | 2 342 |
Equipment | 3 432 | 2 407 | 5 839 | 5 614 | 225 |
Professional and Special Services | 41 248 | 26 335 | 67 583 | 46 718 | 20 865 |
Transfer payments | 3 531 875 | 133 176 | 3 665 051 | 3 608 790 | 56 261 |
Miscellaneous | 479 | - | 479 | 264 | 215 |
TOTAL | 3 633 573 | 179 118 | 3 812 691 | 3 712 878 | 99 813 |
1.3 Expenditure by Economic Classification
Current | 99 181 | 43 535 | 142 716 | 99 688 | 43 028 |
Capital | 2 517 | 2 407 | 4 924 | 4 400 | 524 |
Transfer Current | 2 648 775 | 133 176 | 2 781 951 | 2 757 690 | 24 261 |
Transfer capital | 883 100 |
| 883 100 | 851 100 | 32 000 |
TOTAL | 3 633 573 | 179 118 | 3 812 691 | 3 712 878 | 99 813 |
2. EXPLANATION OF MAIN VARIANCES
2.1 Programme 1 – Administration
The current variance of R3,393 million is mainly due to:
Saving on personnel expenditure of R1 million due to vacant posts.
The anticipated level of travelling by the Ministry and Management was not realised and the moratorium on the filling of vacant posts due to the restructuring of the Department resulted in reduced activities. (R1 246 714)
The non-utilisation of funds provided for professional services to implement the new Public Service Regulations
2.2 Programme 2 – Governance and Development
The current variance of R9,961 million is mainly due to:
Saving on personnel expenditure of R1 million due to vacant posts.
A saving of R3,72 million on the provision for the White Paper on Traditional Leadership which was expected to be completed by March, but is now estimated to be November 2001.
No expenditure required in respect of boundary disputes (R264,000).
General reduction in the amounts utilised for administrative expenditure of R1,73 million through vacancies and delays in programmes.
The amounts expected to be required for professional services did not realise and a number of projects are being carried forward in the next financial year (R2,6 million).
The expected printing of reports and legislation did not materialise (R729,000).
2.3 Programme 3 – Institutional Reform and Support
The current variance of R85,805 million is mainly due to:
Saving on personnel expenditure of R5,2 million due to vacant posts.
The delays in LED Fund projects at municipalities occasioned mainly by the elections and the need for financial discipline (R23,576 million).
The transfers in respect of training initiatives reflect a R1,4 million saving.
The saving of R689,000 in respect of Y2K remediation.
The actual cost of consultancy services on Project Viability reflects a R2,47 million saving.
General reduction in the amounts required for administrative expenditure (R773,000).
The current saving is R15,839 million, however, there are a number of known commitments which still have to be brought to account. The original cessation date for the Centre was 31 March 2001, but due to a variety of reasons, this was not possible. A full report is to be submitted with a request to roll-over funds.
An amount of R31,9 million of the CMIP allocation was not spent by the Gauteng Province due to the fact that funds were committed to slow moving projects and the claims were not received on time from the implementing agents.
The project management costs of the CMIP project were very closely controlled which has resulted in a saving of R3,56 million.
2.4 Programme 4 – Auxiliary and Associated Services
The saving on Communication of R1,0 million is to be utilised in part to cover the additional requirement for the Municipal Demarcation Board.
The saving on the Section 185 Commission of R3,2 million due to the delay in the promulgation of required legislation, is to be utilised for the additional requirement of the Municipal Demarcation Board.
The shortfall in the Municipal Demarcation Board of R4,4 million is as a result of unfunded mandates, unforeseen litigation and publications in Gazettes.
The saving of R648,000 at the National House of Traditional Leaders is due to fewer meetings and the expected research was not realised.
3. ACHIEVEMENTS BY KEY FOCUS AREAS
3.1 Consolidate, Develop and Sustain an Integrated System of Intergovernmental Relations.
3.1.1 Financial Outturn by Component
| Total Budget | Expenditure | Variance |
| R'000 | R'000 | R'000 |
Prog. 2 : Management | 711 | 519 | 192 |
Prog 2 : Co-operative Governance | 10 124 | 4 989 | 5 135 |
Prog. 3: Local Government Finance | 4 927 | 3 112 | 1 815 |
TOTAL | 15 762 | 8 620 | 7 142 |
3.1.2 Level of Achievement of Main Outputs
OUTPUTS | LEVEL OF ACHIEVEMENT |
Policy and legislation on intergovernmental relations | During 2000, the Ministry and Department strategically re-evaluated its position on omnibus policy and legislation as part of the overall restructuring process. This legislation is not desirable during the current phase as the existing ad hoc legal measures do serve the purpose. Instead of free-standing omnibus legislation, the current strategy is to examine intergovernmental relations in the context of core government service-delivery priorities, such as the Integrated Sustainable Rural Development Strategy. |
Discussion document on intergovernmental relations | A discussion document was produced. In line with the Minister’s and the Department’s strategic re-evaluation of its intergovern-mental role, and the emphasis on stabilising local government, however, the discussion document will now inform a practical manual on intergovernmental relations aimed at local government councillors and officials for the 2001 financial year. |
National framework for monitoring, support and supervision | This is an inter-directorate project. Substantial progress was made in that a national and provincial study for a monitoring framework has now been completed. The framework seeks to enhance service delivery through improving inter-governmental rela-tions and channels of accountability. This process further informs the necessary sup-port measures that the different spheres need. |
Section 100 and 139 legislation | Draft legislation was produced, but as a basis for consultation with stakeholders. Any legislation will eventually form part of the Monitoring Framework. |
Develop specific strategies to support intergovernmental and interdepartmental processes | Substantial progress on the government planning cycle was made in collaboration with the Department of Public Service and Administration and the Presidency, including developing priorities and a work plan for the Governance and Administration Cluster and reconfiguring the agenda of the President’s Co-ordinating Council to ensure greater integration with government priorities. |
OUTPUTS | LEVEL OF ACHIEVEMENT | |
A manual on intergovernmental relations | The manual is to be produced during the 2001/2002 financial year as part of the Department’s capacity-building strategy for local government. A manual on section 189 was however produced. | |
Intergovernmental Planning Cycle | This project is driven by the Presidency. The Department serves on a cabinet approved task team with the Presidency, Treasury and GCIS. Substantial progress has been made towards finalising the planning cycle before the July 2001 Cabinet lekgotla. | |
Policy on intergovernmental disputes | The Intergovernmental Relations Audit Report had as one of its tasks the question whether this policy was required. The Report concluded that this policy was not needed in the short term, given that the intergovernmental system is evolving. | |
National intergovernmental data-centre | The Department supported the establishment of the PAIR centre at the University of Pretoria, which is now operational. | |
Audit on Provincial Institutional Capacity Needs | Substantial progress was made in that workshops in the areas of concurrent competency between national and provincial government departments determining institutional capacity needs were concluded by the end of March 2001. The draft report containing findings of the project is now being finalised and will be submitted to the Department at the end of May 2001. | |
MUNICIPAL FINANCE POLICY | Draft Bill published in August 2000. | |
| Bill to be tabled in Parliament in August 2001. | |
National Municipal Tariff Policy Statement and Guidelines | Final drafts on National Municipal Tariff Policy statement and guidelines to be published and distributed to all the councils before July 2001. The policy statement and guidelines are 90% complete. | |
Fiscal Reform Project | Reference group had met for the fifth time on 29 March 2001. | |
Establishment of a fiscal database for modelling finances and informing decision makers of options | First draft on fiscal database completed in November 2000. A presentation on fiscal database to take place end of April 2001. Final Draft to be completed before end of May 2001, and presented in the June 2001 workshop. | |
Analysis of the vertical split (quantum) of Equitable Share for Local Government and the determination of an overall performance criteria for the Equitable Shares system | Draft Policy framework on the options for closing the fiscal gap between expenditures and revenues of local government finances was presented to the reference group in November 2000. Draft Policy framework on the options for closing the gap between expenditures and revenues of local government finances must be completed before the end of May, and presented in the June 2001 workshop. | |
Determining the Fiscal Powers and Functions of Category B and C Municipalities | The first draft of the policy framework for the division of fiscal powers and functions for category B and C municipalities was presented to the reference group in October 2000. The draft policy framework for the division of fiscal powers and functions for category B and C municipalities was presented on 29 March 2001. Final Draft to be completed by May 2001, and presented in the June workshop. | |
3.2 Consolidate and Sustain an Integrated System of Planning and Delivery.
3.2.1 Financial outturn by component.
| Total Budget | Expenditure | Variance |
| R'000 | R'000 | R'000 |
Programme 3 |
|
|
|
Infrastructure and Planning | 5 980 | 5 133 | 847 |
Municipal Services Partnerships | 8 000 | 7 450 | 550 |
Consolidated Municipal Infrastructure Programme | 891 722 | 856 281 | 35 441 |
Social Plan Measures | 2 978 | 3 003 | (25) |
Local Economic Development Fund | 104 257 | 80 480 | 23 777 |
Equitable Share to Local Government | 1 867 000 | 1 867 000 | - |
Local Government Support | 150 000 | 150 000 | - |
R293 Towns | 463 000 | 462 997 | 3 |
Local Government Transition Fund | 100 000 | 100 000 | - |
TOTAL | 3 592 937 | 3 532 344 | 60 593 |
3.2.2 Level of Achievement of Main Outputs
Outputs | Level of Achievements |
DECENTRALISED DEVELOPMENT PLANNING PROGRAMME |
|
OUTPUTS | LEVEL OF ACHIEVEMENT | |
Develop a single regulatory framework for development planning by 2001. | A draft discussion policy paper on integrated development planning has been completed. Consultations with major stakeholders were held and the policy will be finalised and launched in July 2001. | |
Facilitate the use of IDP approach across all spheres of government over a five year period. | The above paper on integrated development planning incorporates issues on IGR planning approach across all spheres. | |
Monitor implementation of the regulatory framework on an annual basis. | The draft IDP monitoring system has been developed to ensure that the IDP process is monitored on an annual basis. | |
Develop and promote a common understanding of the outcomes of development planning and infrastructure delivery, i.e. community empowerment, integrated and sustainable environments, local economic development, meeting basic needs and infrastructure needs through workshops, information dissemination and various other training initiatives on an ongoing basis. | IDP process has been successfully linked to local economic development and infrastructure as delivery instruments in order to create sustainable communities and ensure implementation of plans, through CMIP and the LED Fund. | |
Develop a national planning implementation and management support system (PIMS) for provincial and municipal integrated development planning by December 2000 | Established, equipped and trained staff for 12 Planning and Implementation Management Support Centres (PIMS – Centres) at district level to fulfil the municipal developmental function. | |
Seek greater alignment between the financial/budgetary planning cycles of all three spheres of government by December 2000. | The initial step was to ensure that the planning cycle /budgetary processes of local government are linked to the IDP process. The second phase was to develop the planning cycle for government processes and the process is now led by the Presidency. | |
Establish and manage a data and information system to support the preparation of provincial and municipal integrated development plans by July 2000. | The IT and monitoring system has been designed and it will finalised in July 2001. | |
Align the Provincial Development plans with national priorities through the Presidential Co-ordinating Council on an annual basis | The President, Minister for Provincial and Local Government and Provincial Premiers meet in the PCC to discuss governance and development issues that affect the three spheres of government on a regular basis. | |
Monitor and evaluate the performance of the IDP programme to ensure that the developmental outcome of government is addressed on a regular basis. | The monitoring system will be utilised to collect and analyse data on IDP progress. The findings will be used to feedback into the annual planning process. | |
Outputs | Level of Achievements |
Capacity building programme to support provincial government during the implementation of the system | A capacity building programme has been designed for both provincial and local government stakeholders that have a role to play in the IDP process. The tender amounting to R 10 million was advertised in November and service providers will be appointed soon. |
LOCAL ECONOMIC DEVELOPMENT PROGRAMME | |
Manage LED Fund and undertake all actions necessary that will ensure effective, efficient and unsustainable project delivery on an continuous basis. | Effectively managed the LED fund resulting in the creation of both part- and full-time jobs, transference of facilities and assets to local communities and municipalities and ensured |
Ensure that provinces and municipalities have crafted strategic economic regeneration programmes and strategies to address economic decline in their areas of jurisdiction by July 2001 | Out of 51 municipalities who qualified for the Social Plan Fund, 36 have completed their regeneration studies detailing strategies/projects to address economic decline in their areas of jurisdiction. |
Develop and position the LED component appropriately in the national sphere of government in order to play an effective role within the overall system of co-operative government. | A fully functional LED component within the Department was established and maintained. Discussions are continuing on the need to establish an interdepartmental structure comprised of national departments implementing poverty alleviation programmes. A proposal has been made to MEC's for local government to establish LED units in provinces and municipalities (some have these in place already) |
Produce an enabling national policy framework for LED to support the mandate of provincial and local government. | Completed a draft policy framework for LED to support the mandate of provincial and local government has been completed and consulted on during November/December 2000. |
Engage in a range of targeted capacity building and support initiatives aimed at provincial and local government. | Designed a training programme for both provinces and municipalities. This will be rolled out in June/July 2001. The manuals and information booklets are at a printing stage. |
Outputs | Level of Achievements | |
Infrastructure Implementation. | | |
Manage strategic delivery programmes and undertake all actions necessary that will ensure effective, efficient and sustainable project delivery. | Effective, efficient and sustainable project delivery have been achieved through the requirement that operation and maintenance plans (O&M) must be approved by municipal councils and provided for in project business plans. The training and capacity building of municipal officials further enhances this process. | |
Monitor and evaluate the performance of strategic delivery programmes to ensure that the developmental outcome of government is addressed. | CMIP is being monitored and evaluated on a monthly, quarterly and biannual basis to ensure that the developmental outcomes of government are adhered to. | |
Implementing the changes to CMIP as approved in the Cabinet Memorandum on 1 December 1999 in respect of rural infrastructure, capacity building, internal services and community facilities. | All changes to CMIP as approved in the Cabinet Memorandum dated 1 December 1999 in respect of rural infrastructure, capacity building, internal services and community facilities, have been implemented. | |
Upgrading the management system of CMIP. This included ensuring that provinces have the necessary capacity to implement the new changes to CMIP. | The upgrading of the management system of CMIP receives constant attention and regular workshops are held with provinces to ensure that they have the necessary capacity to implement changes. | |
Finalising the review of the Municipal Infrastructure Investment Framework (MIIF). This will provide the latest overview of municipal infrastructure backlogs in the country and recommend a financial, planning, delivery and institutional framework to address these backlogs. | The Municipal Infrastructure Investment Framework (MIIF) is in the process of being submitted to Cabinet. This framework document was finalised in January 2001. | |
Outputs | Level of Achievements | |
Establishment of an enabling policy and regulatory framework for various forms of municipal service delivery. | 1. Cabinet approved a Draft White Paper on Municipal Service Partnerships (MSPs) for further consultation and input from stakeholders. This policy framework is due for a second presentation to Cabinet for final endorsement as a series of consultative workshops have already been convened with a wide spectrum of stakeholder. | |
Institutionalisation of Municipal Service Partnerships Capacity Building Programme. | 1. This is on track and at an advance stage as the Department has entered into a Memorandum of Understanding (MOU) with the two universities that have been identified to pilot this idea namely the Free State and Western Cape. Already Training of Trainers (TOT) drawn from 10 universities, 6 NGOs and 9 Provincial Programme Managers for MSPs has been conducted. Since this is a process other stages would be completed in September 2001. | |
Design and implement municipal community partnerships (MCPs) | A business plan on MCPs has been designed. The Department is embarking on the implementation phase and the process of identifying pilot projects is underway. | |
Review the mandate of the Municipal Infrastructure Investment Unit (MIU) | A Directorate for municipal policy is created. | |
SOCIAL PLAN MEASURES | Guidelines on how to undertake regeneration studies were developed and distributed to all municipalities. | |
Policy implementation and Training Guidelines by December 2000. | Initiation workshops were held in municipalities that qualified for Social Plan Fund and guidelines were provided. | |
Monitoring and evaluation strategy by December 2000. | Monitoring study was commissioned to analyse submitted regeneration studies and assess their quality. The findings of the study were used to propose a structure and content of the regeneration study. Regular reports are also received from municipalities presenting performance on the expected outputs. Provincial Co-ordinating Committee (comprised of national, provinces and municipalities) meetings are held regularly to assess progress and deal with problems. | |
Outputs | Level of Achievements | |
EQUITABLE SHARE FOR LOCAL GOVERNMENT | | |
Preparation and release of an annual report on the equitable share for local government, which includes a review of the impact of the equitable share on the various types of municipalities on an annual basis | Annual report on the equitable share for local government for the 1999/2000 was published and distributed to all CEOs/Town Clerks and Mayors early in May 2000. The allocations to individual municipalities for the 2000/01 municipal financial year formed part of the report. | |
Converting current municipal allocations to the new municipal boundaries resultant from the demarcation process | Joint process was established with the National Treasury and STATS SA to, amongst others: | |
Equitable share payments to those municipalities which are primarily responsible for the provision of services and with sufficient treasury capabilities to receive such transfers | Equitable share payments to municipalities (approximately 550) and organised local government for the 2000/01 financial year were effected quarterly within the first month of these quarters. | |
Updating database on municipalities as required (addresses, names of CEOs/town clerks, banking details) | The Finance Section is informed of any changes to banking details of municipalities in order to ensure that payments are made to the right banking account – continuous activity. | |
Quarterly reconciliation to ensure actual and accurate transfers to municipalities | Equitable share payments for the 2000/01 financial year were reconciled with the payment schedule approved by the Director-General. | |
Outputs | Level of Achievements |
Devising implementation strategy for incorporating DWAF operating subsidies into the equitable share | Meetings are held every fourth Thursday of every month between the Department, DWAF, National Treasury and SALGA to develop an appropriate strategy for incorporating DWAF operating subsidies into the equitable share. |
Review of the appropriateness of the equitable share formula after demarcation process of municipalities | Issues impacting on the formula as a result of the demarcation were identified during August 2000. Simulations will be done during end 2000/early 2001 to determine most appropriate alternatives. Longer-term reforms to the equitable share formula will only start in 2001 (also refer to Local Government Finance Reform Project). |
Monitoring municipalities with a view to detect mismanagement or financial misconduct | Withholding of equitable share payments to selective municipalities were investigated due to possible financial misconduct at these municipalities. It was, however, identified that corrective steps are being taken by these municipalities and payments were accordingly effected. |
Monitoring other operating transfers administered by other national government departments for possible transfer to this department in future years | Departmental activity through MTEF processes. |
Dealing with enquiries from municipalities regarding the equitable share | Telephonic inquiries are dealt with immediately (approximately 60 to 90 telephonic queries per month). |
R293 TOWNS PERSONNEL GRANT | |
Outputs | Level of Achievements |
Transfer of R293 town personnel grant to provinces and municipalities on a monthly basis | R293 personnel transfers were made to six provinces and fifty-four municipalities on a monthly basis for the 2000/01 financial year. |
Continued assistance to provinces and municipalities to assist them in the transfer of R293 staff before the stipulated deadline | A workshop was held with all provinces during beginning July 2000 to assist them in resolving issues hampering the transfer of R293 staff to municipalities. |
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Obtain monthly reports from provinces in respect of R293 town staff | The necessary follow-up was done to obtain outstanding expenditure reports from provinces for the 2000/01 financial year. On average, provincial compliance was unsatisfactory and numerous follow-ups were required. |
From monthly reports obtained from provinces, compile consolidated quarterly reports to the DG of Finance | The monthly information as stipulated in the Division of Revenue Act, 2000 provided by provinces was used by the Department to prepare a consolidated quarterly expenditure reports for the 2000/01 financial year – July 2000, October 2000 and December 2000 respectively. |
Other R293 town related issues: | Various responses were prepared on legal documentation in the legal case instituted by the East London TLC against various parties, including the Department. |
Outputs | Level of Achievements |
TRANSITION GRANT FOR LOCAL GOVERNMENT |
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Possible establishment of a transitional fund for local government for the 2001/02 and 2002/03 financial years | A survey of the once-off and incidental costs related to the restructuring process and the proposed size of the transitional fund was completed in August 2000. |
| An amount of R100 million was allocated on the Adjustments Budget for the 2000/01 financial year to cater for the costs related to the demarcation process. |
| |
3.2.3 Other activities Accomplished
Outputs | Level of Achievements |
Consolidation of Interim IDPs for newly established municipalities. | Stemming out of the demarcation process municipalities were requested to prepare interim IDPs and link these plans to their 2001/2002 budgeting process. More than 80% municipalities have completed their interim IDPs with the rest due by the end of April 2001. |
Sharing of information and best practices | Distributed best practise newsletters to all relevant stakeholders with the view to share lessons learned during the implementation phase of the LED programme. |
Showcasing LED projects | Hosted a successful Trade Fair to showcase 32 completed LED projects. |
Improvements on the LEDF for better planning outputs and maximum impact. | The LED Fund is now located within MTEF enable municipalities to effect multi-year planning. The increase in the LED Fund allocation is a positive step towards addressing poverty and job creation. |
CMIP STATISTICS
The amounts allocated per province on rural and urban projects are as follows:
PROVINCE | RURAL PROJECTS (R’000) | URBAN PROJECTS(R’000) |
Eastern Cape | 282 | 1 |
Free State | 37 | 35 |
Gauteng | 8 | 226 |
KwaZulu-Natal | 222 | 108 |
Mpumalanga | 71 | 15 |
Northern Cape | 30 | 8 |
Northern Province | 122 | 34 |
North West | 43 | 68 |
Western Cape | 21 | 32 |
Outputs for the 2000/01 financial year | Level of Achievements |
Projects approved | 646 |
Projects in design and tender phase | 64 |
Projects in construction phase | 181 |
Projects completed | 345 |
Beneficiaries | 2 461 467 |
Women and youth employed (person days) | 3 025 910 |
Training provided (training days) | 304 507 |
SMME’s used on projects | 621 |
Outputs since inception of programme | |
Projects approved | 2 040 |
Projects in design and tender phase | 284 |
Projects in construction phase | 516 |
Projects completed | 1 087 |
Beneficiaries | 10 605 672 |
Women and youth employed (person days) | 3 067 163 |
Training provided (training days) | 318 555 |
SMME’s used on projects | 672 |
3.3 Support Provincial and Local Government as well as Institutions of Traditional Leadership in Order to Facilitate Delivery.
3.3.1 Financial outturn by component
| Total Budget | Expenditure | Variance |
| R'000 | R'000 | R'000 |
Prog 2: Traditional Affairs | 11 045 | 6 411 | 4 634 |
Prog 3: Management | 847 | 403 | 444 |
Prog 3: Development and Support (Portion) | 3 061 | 2 144 | 917 |
Prog 4: National House of Traditional Leaders | 3 506 | 2 901 | 605 |
Prog 4: Khoisan Communities | 661 | 348 | 313 |
TOTAL | 19 120 | 12 207 | 6 913 |
3.3.2 Level of Achievement of Main Outputs
Outputs | Level of Achievements |
TRADITIONAL LEADERSHIP AND INSTITUTIONS | |
Develop a Green Paper and White Paper on Traditional Leadership and Institutions | Chapters of the Green Paper have been completed and three are outstanding. It is expected that the Green Paper will be finalised by June/July 2001. |
Review of existing legislation and drafting new legislation. | Review and rationalisation of all existing legislation pertaining to traditional leadership has been finalised. A skeletal framework for National legislation has also been drafted. The final version will be completed after completion of the White Paper. |
Establishment of an Independent Commission on Disputes and Claims on traditional leadership | The necessary preparatory work has been done. A proposal has been submitted to form part of the Green Paper. Implementation will take place after the completion of the White Paper. |
Outputs | Level of Achievements |
Conduct research on historical and anthropological dimensions of the Khoisan communities | A report with recommendations has been finalised and submitted to form part of the Green Paper. This will be finalised simultaneously with the White Paper. |
Develop and maintain capacity building programmes for traditional leaders and institutions | A paper on capacity building was commissioned to lay a foundation for the development of an effective programme. |
Render support to the National House of Traditional Leaders | A Code of Ethics was formulated for the National House. The appointment of two additional officials for the National House has been approved. |
Attend to ad hoc traditional leadership disputes and claims | Disputes and claims that do not require the attention of the Commission have been handled on a continuous basis. |
ADMINISTRATIVE SYSTEMS | · Determined formulae for the number of councillors for each municipality, in terms of section 20 of the MSA. |
Outputs | Level of Achievements |
Re-assess capacity of all newly elected councils with a view to finalise the division of Powers and Functions between category B and C municipalities. | · Provide inputs at fora represented by the National Departments of Finance, Water Affairs and Forestry, Mineral and Energy Affairs, Health, and the Municipal Demarcation Board. |
The Implementation of the Municipal Systems Act. | · After consulting the relevant line managers, ensured that the legal requirements for the implementation of the Act were in place. |
Administer the Remuneration of Public Office Bearers Act. | · Consulted with MECs, and the Commission for the Remuneration of Public Office Bearers on determining upper limits for salaries and allowances for councillors and traditional leaders. |
Provide support to municipalities and provinces. |
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3.4 Development and Implement Targeted Capacity Building Programmes.
3.4.1 Financial outturn by component
| Total Budget | Expenditure | Variance |
| R'000 | R'000 | R'000 |
Prog 3: Development and Support (Portion) | 4 726 | 3 241 | 1 485 |
Prog 3: Project Viability | 16 400 | 13 933 | 2 467 |
3.4.2 Level of Achievement of Main Outputs
Outputs | Level of Achievements |
Develop a system to address capacity needs assessment. |
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| Methodology designed and agreed to for usage. |
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· Develop an institutional capacity building strategy | A 1st Draft Local Government Capacity Building Strategy done and completed for discussion purposes with stakeholders. |
· Assess the performance of provincial institutions in terms of their functions and in supporting local government. | · Process to start in May 2001. |
· Identify and document "best practices" and new methods within provinces. | · A system is being developed to document best practices and will be in place by September 2001. |
| · Process to start once the capacity building strategy is being implemented by October 2001. |
Develop and implement targeted Capacity Building programmes |
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| · A draft development Programme is included in the Draft Strategy document. |
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· Develop and implement capacity building programmes on an ongoing basis (in line with our programmes) | · A targeted Training Programme for Councillors was developed, implemented and completed at the end of March 2001. |
· Evaluate the effectiveness, efficiency, responsiveness and impact of the capacity building programmes | · |
· Normalisation/stabilisation of municipal finances | · |
PROJECT VIABILITY: |
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CONDUCT A QUARTERLY SURVEY ON THE STATUS OF MUNICIPALITIES AND MAINTAIN THE PROJECT VIABILITY DATABASE: | |
Publish at least one status report on municipalities each year | Due to the delay in the submissions of the reports to MINMEC, no reports have been published, however, reports have been made available electronically on request. |
Information on the status of municipalities to be published on the website | All reports approved by MINMEC were forwarded for publication on the website. |
Ensure that each province can utilise the database | A pilot project was undertaken where one province was trained on the database. Due to the lack of interest this process was terminated. Provinces were supplied with the relevant data applicable to their province through the quarterly reports. |
Refine the early warning system to timeously identify municipalities heading towards a financial crisis | The early warning system was enhanced to include financial as well as administrative factors that could indicate the possibility of a municipality facing a financial crisis |
Develop and implement a strategic plan for the collection of data at provincial level in order for provinces to meet the requirement stipulated in Section 155(6)(a) of the Constitution | A process has been identified and will be introduced once monitoring of the newly established municipalities takes place. |
ENSURE THE EFFECTIVE PROVISION OF TECHNICAL SUPPORT TO MUNICIPALITIES TO ASSIST THEM IN IMPROVING FINANCIAL MANAGEMENT AND IMPLEMENT STRUCTURAL ADJUSTMENT PROGRAMMES THROUGH THE MANAGEMENT SUPPORT PROGRAMME: | |
Monitor the technical support provided through quarterly meetings with the Steering Committee and Provincial Programme Managers in order to ensure that the objectives of the programme are met | Regular quarterly meetings were held during the year. |
Develop a strategy for the implementation of the structural adjustment programmes developed through the Management Support Programme | Funding was provided to over 125 municipalities for the implementation or various projects that would have a positive impact on the cash flow of the municipality. R60 million was provided for this purpose. Requests were received for over R300 million worth of projects. |
Through technical support and liaison with Section 14(5) committees, ensure that municipalities are adjusted to take the development envisaged within the new boundaries, as determined through the demarcation process, into account. | Regular communication was established at provincial level with Section 14(5) or transitional committees. The work of the management support teams was adjusted to take into consideration the new municipal boundaries. |
Provide progress reports to MINMEC and make Cabinet submissions as required | Regular reports were provided to MINMEC, input was provided to joint submissions to Cabinet on municipal and related matters. |
PROMOTE THE IMPLEMENTATION AND MAINTENANCE OF SOUND FINANCIAL MANAGEMENT PRACTICES AT MUNICIPAL LEVEL: | |
Develop a mentoring programme for implementation through the Management Support Teams for financial council officials in liaison with the SETA dealing with Project Viability Training | A mentoring programme was designed but not implemented by the Training Board (now dissolved and replaced by the Local Government SETA). Management Support Teams were instructed to provide mentoring to municipal officials as they assisted the municipalities involved in the management support programme. |
3.5 Disaster Management
3.5.1 Financial outturn by component
| Total Budget | Expenditure | Variance |
| R'000 | R'000 | R'000 |
Prog 3 Disaster Management | 40 130 | 22 658 | 17 472 |
3.5.2 Level of Achievement of Main Outputs
Outputs | Level of Achievements |
Developing a new regulatory framework | · The revised Disaster Management Bill was distributed to all Cabinet Ministers, Premiers and Directors-General of the National Departments and the Provinces. |
| · Unfortunately the meeting had to be cancelled due to a lack of attendance. |
| · The Minister indicated that he will submit the Bill to Cabinet as soon as possible. |
| · |
Developing a national disaster management policy. | A draft Disaster Management Manual has been completed. The Department has decided that the Disaster Management Manual will not be finalised before the Disaster Management Act has been promulgated. |
Promoting the establishment of a functional institutional framework. |
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Training and Capacity Building. | The Norwegian Government donated R706 000-00 for an informal training programme for disaster management. The Chief Directorate: Disaster Management has appointed the ML Sultan Technikon in Durban to undertake such a programme in the four provinces where the need for training is the greatest, namely, Mpumalanga the Northern Province, Eastern Cape and KwaZulu-Natal. The ML Sultan Technikon has finalised and submitted their proposed workplan, strategy, timeframes, needs analysis budget, etc. The programme will also be monitored by a representative of the Norwegian Government. |
Implementation of Strategies to establish and maintain an integrated Information Management System for Disaster Management. | As far as the development of an IT database is concerned, the following can be reported: |
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Developing a monitoring and evaluation system to measure the overall impact of the implementation of disaster management. | The development of such a system is closely linked to the implementation of the strategies and activities mentioned under 5 supra, |
Alleged collapse and deterioration of emergency services (fire brigade and ambulance services). | Based on the report by SAIA in this regard, a technical task team was established to address the issues of uniform norms and standards for fire brigade services and the effective funding thereof. |
3.5.3 Other Activities Accomplished.
Establishment of a SADC Disaster Management Unit
At a meeting of the SADC Council of Ministers during August 2000 it was resolved that the SADC Disaster Management Working Group (chaired by Mr LJ Buys) be disbanded and a SADC Disaster Management Committee be established. The first meeting of the SADC Disaster Management Committee and Technical Planning Seminar was held in Harare on 6 – 9 December 2000 where Mr Buys reported on the work done by the SADC Disaster Management Working Group and in terms of protocol formally handed over the chairpersonship to Namibia.
3.6 Develop and Implement a Performance Management System Appropriate to Provincial and Local Government.
3.6.1 Financial outturn by component.
| Total Budget | Expenditure | Variance |
| R'000 | R'000 | R'000 |
Prog 3: Development and Support (Portion) | 2 210 | 1 598 | 612 |
3.6.2 Level of Achievement of Main Outputs
Outputs | Level of Achievements |
PERFORMANCE MANAGEMENT | |
A written policy framework on PMS | A manual that defines the policy and legislative framework and explains core components of the system as articulated in the MSA has been developed. The manual is 80% complete |
Host a conference to receive input on the policy framework | The conference will convened in early June 2001 to launch PMS support framework (manuals/guidelines, national KPIs and PMS training programme |
A set of regulation \ guidelines on implementing the PMS | Draft regulations on PMS have been developed, and a workshop convened with stakeholders to discuss the regulations. They are currently being revised and are almost 75 % complete. |
A set of National KPIs for municipalities | As reported earlier, a report on the National Key Performance Indicators Framework and proposed set of national KPIs has been developed and is 80% complete |
A number of training guides/ management guides developed on PMS | As reported earlier the first manual - that defines the policy and legislative framework and explains core components of the system as articulated in the MSA has been developed. The manual is 80% complete |
Developed training curricula and training materials for PMS training | The Directorate has advertised a tender to procure the services of service- providers to develop and deliver PMS training programme to municipalities. It is planned that the programme will be ready by the end of May. |
Running PMS Pilot training programme | The Directorate has advertised a tender to procure the services of service- providers to develop and deliver PMS training programme to municipalities. It is planned that the PMS training programme will be delivered from July 2001. |
An established research Agency on PMS | A PMS comes in operation from 1 July 2001 and the research agency could be established then to monitor how municipalities are establishing their PMS, develop best-practice reports and facilitate shared learning among municipalities. |
Established PMS Technical Support Team for PMS Pilot | The Directorate has advertised a tender to procure the services of PMS / monitoring and evaluation experts to provide technical support on various aspects of PMS to DPLG and pilot municipalities. |
INTERNATIONAL RELATIONS | |
SADC Local Government Forum | The Directorate in consultation with Mozambique, Zambia and Zimbabwe successfully lobbied, for the acceptance and recognition of SADC Local Government Forum within SADC structures. The Local Government is now represented within the newly restructured SADC. This is a major achievement by the Department and South Africa in general. |
Africities 2000 Summit | The Directorate successfully co-ordinated the attendance of the Minister, several members of the Executive Committee responsible for Local Government, Mayors, Councillors and officials to the Africities 2000 Summit held in Namibia during May 2000. The Minister chaired an important meeting, which adopted several resolutions. The officials compiled an informative report, which was distributed to Provinces, Municipalities and National departments. |
SADC Heads of State/Government Summit | The |
Forum meetings of the SADC Local Government Forum and Task Teams | The Directorate successfully organised, co-ordinated and supported meetings of the SADC Technical and Ministerial Task Teams held on 24 March 2000 and 10 July 2000 in Pretoria |
MIR Co-ordination Group | The Directorate co-ordinated and supported several meetings of the MIR co-ordination Group. Ongoing advice was given to municipalities on their twinning proposals |
Database on twinning arrangements by municipalities | The Directorate developed a draft manual database on twinning arrangements by South African municipalities. The foundation for expansion of this project has been laid. |
3.6.3 Other Activities Accomplished.
At a 'Post-Demarcation Challenges' conference in October 2000 the Minister alluded to the urgent need of developing a monitoring instrument for the interim IDP and the establishment processes for the new local government system. Subsequently, at a meeting between the Minister and the PMS directorate the need for such a monitoring instrument was re-confirmed.
The Directorate duly developed a concept paper on monitoring the implementation of the new system of local government. The primary objectives of the monitoring instrument are:
Monitor progress of the establishment/change process;
Keep the Minister/ MECs/Departments updated on developments;
Pick early warning signals for support and interventions; and
Develop a database.
High level indicators on the focus areas namely - financial issues, human resources, institutional, strategic and administrative infrastructure were developed as articulated in the Guidelines for transformation of local government. An accompanying reporting format was developed. Provinces duly submitted composite provincial status quo reports, which were analysed and developed into a National Status Quo Report on the new system of Local Government. The report has been forwarded to senior management and the Minister. A second report is being developed.
3.7 Support Services
3.7.1 Financial outturn by component
| Total Budget | Expenditure | Variance |
| R'000 | R'000 | R'000 |
Prog 1: Minister | 518 | 598 | (80) |
Prog 1: Management | 2 265 | 1 619 | 646 |
Prog 1: Corporate Services | 23 769 | 20 942 | 2 827 |
Prog 4: Communication Services | 8 486 | 7 664 | 822 |
Prog 4: Government Motor Transport | 101 | - | 101 |
Prog 4: PSETA | 42 | 42 | - |
TOTAL | 35 181 | 30 865 | 4 316 |
3.7.2 Level of Achievement of Main Outputs
Outputs | Level of Achievements |
Maintenance of standard of reporting in terms of the PFMA and Division of Revenue Act. | All reports were submitted timeously and resulted in no over-expenditure and the effective movement of funds in the Adjustment Estimate. |
Consolidation and presentation of budget inputs. | Budget inputs were submitted timeously to the National Treasury and the results from the Medium Term Expenditure Committee were satisfactory. |
Review of current system of financial administration. | A new system of expenditure commitment and budget control at programme manager level introduced. |
Improvement in the administration of the system of procurement of supplies and services. | The application of the tendering procedures was reviewed which led to a reduction in lead times and improvement in tender adjudication. |
Provision of a media liaison service for the Ministry and the Department. | All media requirements of the Minister and the Director-General were met. A revised communication strategy has been prepared. |
Co-ordination of public relation campaigns. | There have been a number of very successful campaigns, such as local government transformation, local economic development, disaster relief and the anti cholera campaign. |
Preparation of departmental legislation. | All legislation prepared timeously and amendments brought about by Portfolio Committee incorporated immediately. In some very urgent cases the assistance of a consultant is acknowledged. |
Administration of court cases. | All court cases threatening the local government elections were resolved before the elections. Further developments in respect of these court cases depends on political interaction. |
Restructure the Department in line with its new focus and objectives. | Successfully completed the restructuring processes in the Department in co-operation with a task team appointed for this purpose. |
Render human resource management and development services. | Continue to successfully administer human resource management and development processes in the Department. |
| Effected the appointment of personnel for the Command Centre: Emergency Reconstruction and administered the relevant staff's salaries etc. |
| Implemented the new all-inclusive remuneration system for senior managers in the Department. |
4. PROGRESS WITH THE RESTRUCTURING OF THE DEPARTMENT
4.1 Summary of the Process
4.1.1 As the Portfolio Committee is aware, the Department embarked on a major restructuring exercise in order to align the Department’s organisation and post structure with its new focus and objectives. This project, which has recently been finalised, was dealt with on the following basis:
Pursuant to strategic planning and the finalisation of a strategic plan, the revised organisation and post structure on senior management level was finalised as a first step.
After wide consultation with the employee unions and serving staff, agreement was reached with the said stake holders on the principles and criteria to be applied for purposes of the absorption of serving staff in the revised post structure.
Based on the outcome of a further business planning exercise, the revised post structure below senior management level was finalised during October 2000.
Serving senior managers were absorbed in the revised post structure on senior management level with effect from 22 November 2000.
The absorption of serving Deputy Directors and lower ranks in the revised post structure below senior management level was finalised at the end of February 2001 and came into effect on 1 April 2001. All serving staff on these levels have been absorbed in the revised structure.
4.1.2 As far as the filling of the remaining vacant posts are concerned, attention is invited to the following:
Vacant posts on senior management level were subjected to job evaluation and advertised. The three vacant Deputy Director-General posts have already been filled. The selection processes in respect of the other advertised senior management posts are presently receiving priority attention.
Other vacant posts will be subjected to job evaluation, where appropriate, and advertised as soon as possible. This process will be dealt with in phases and on a priority basis.
4.2 FINAL RESULT AFTER ABSORPTION OF STAFF – 31 MARCH 2001
| Approved Establishment | Posts filled | Posts vacant | |||
Female | Male | |||||
Black | White | Black | White | |||
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| 26 | 10 | 0 | 6 | 0 | 10 |
| 32 | 3 | 0 | 10 | 0 | 19 |
| 12 | 5 | 0 | 7 | 0 | 0 |
| 13 | 6 | 3 | 4 | 0 | 0 |
| 13 | 4 | 6 | 2 | 0 | 1 |
| 22 | 7 | 4 | 4 | 1 | 6 |
| 18 | 5 | 8 | 2 | 1 | 2 |
| 19 | 3 | 0 | 3 | 2 | 11 |
| 15 | 1 | 5 | 6 | 3 | 0 |
| 21 | 2 | 0 | 7 | 1 | 11 |
| 17 | 3 | 6 | 4 | 3 | 1 |
Total Other posts | 208 | 49(33%) | 32(22%) | 55(38%) | 11(7%) | 61(29%) |
| 24 | 1 | 0 | 5 | 9 | 9 |
| 8 | 1 | 0 | 1 | 2 | 4 |
| 3 | 0 | 0 | 0 | 0 | 3 |
| 1 | 0 | 0 | 1 | 0 | 0 |
Total SMS | 36 | 2(10%) | 0 | 7(35%) | 11(55%) | 16(44%) |
Total | 244 | 51(31%) | 32(19%) | 62(37%) | 22(13%) | 77(32%) |
Note: Senior Management Service (SMS) is reflected in post levels 13 – 16.
Middle management is reflected in post levels 9-12.
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