Committee Report on OR Tambo District Municipality referral

NCOP Appropriations

28 June 2017
Chairperson: Mr C De Beer (ANC, Northern Cape) (Acting)
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Meeting Summary

The draft report on the OR Tambo district municipality referral was read through by the Chairperson.

The Acting Chairperson highlighted that the National and Provincial Treasuries; the Eastern Cape Cooperative Governance and Traditional Affairs, and the Department of Cooperative Governance, had waited too long to intervene to support and strengthen the capacity of the district municipality, as envisaged in section 154 of the Constitution. He suggested that a new recommendation be inserted to the report to state that there be reporting on a quarterly basis to the Eastern Cape Provincial Legislature on a quarterly basis on the actual spending on the MIG to date.

Approval of the report was deferred, until after a visit to the municipality.

Members were informed that the proposed study tour – scheduled for July - to Malaysia had been approved.

Meeting report

Committee Report on OR Tambo District Municipality referral
The Acting Chairperson read through the draft report with Members.

In the course of that, he commented that the capacity of the municipality was a huge challenge. With regard to the decision by the National Treasury to reduce the Municipal Infrastructure Grant to the municipality in the 2016/17 financial year, he commented that the National and Provincial Treasuries; the Eastern Cape Cooperative Governance and Traditional Affairs, and the Department of Cooperative Governance, had waited too long to intervene to support and strengthen the capacity of the district municipality, as envisaged in section 154 of the Constitution. A section 71 report had to be submitted to the National Treasury every 30 days. Challenges had to be picked up early in the financial year. It was an intergovernmental relations issue. The NCOP had to provide answers. The implications of stopping funds for service delivery had to be considered. Future clauses regarding the stopping of funds had to be strengthened by requiring the approval of Parliament. He suggested that a sentence be added to paragraph 4.2, under recommendations, that there be reporting on a quarterly basis to the Eastern Cape Provincial Legislature on a quarterly basis on the actual spending on the MIG to date.
The Acting Chairperson put the draft report up for adoption. It was seconded, but the Chairperson stated that actual adoption could only take place after a visit to OR Tambo Municipality. He asked the Committee Whip about a date for such a visit.

Ms T Motara (ANC, Gauteng) replied that the district had to adhere to MSMA reporting timeframes, and not to additional timeframes not legislated for. A date for the visit could be inserted into the Committee oversight programme.

Adoption of minutes
Minutes of 20 June were adopted without amendment.

Study Tour
Members were informed by the Committee section that political and financial applications for a visit to Malaysia were approved. The visit would encompass one week in July. The Economic Development Portfolio Committee would also be in Malaysia, and the Select Committee could team up with the Portfolio Committee. The Malaysian High Commission in South Africa would render assistance. Cost implications of the use of venues in Malaysia were still being looked at.

The Chairperson adjourned the meeting.

 

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