North West Intervention: Feedback session with community forum & departments; COGTA on state of Municipalities in North West

Meeting report

Chairperson Dodovu convened the virtual meeting and welcomed Members and the delegations in attendance. He noted an apology from Mr Y Carrim (ANC, KwaZulu-Natal)

The purpose of the meeting was for the Committee to receive a briefing from the Office of the Premier, the Ratlou Local Municipality and the North-West Provincial Department of Cooperative Governance and Traditional Affairs (COGTA) with regards to the issues raised by the Madibogo Pan Community Forum during the Committee’s oversight visit. Another item on the agenda was for the Committee to be briefed by the provincial Department of COGTA on the state of municipalities in the North-West province.

The delegation from the Executive Council of the North-West province consisted of:

Prof Job Mokgoro, Premier of the North-West Province,

Mr Oagile Molapisi, Member of the Executive Council (MEC) for Public Works and Roads,

Mr Sello Lehari, MEC for Community Safety and Transport Management,

Mr Madoda Sambatha, MEC for Health,

Mr Mmoloki Cwaile, MEC for Cooperative Governance and Traditional Affairs,

Ms Boitumelo Moiloa, MEC for Social Development,

Ms Motlalepula Rosho, MEC for Finance,

Ms Wendy Matsemela, MEC for Education, and

Ms Kenetswe Mosenogi, MEC for Economic Development, Environmental Affairs and Tourism.

In addition, the delegation included:

Mr Thupi Mokhatla, Head of the Provincial Department of Agriculture and Rural Development,

Ms Stephinah Semaswe, Head of the Provincial Department of Education,

Mr Obakeng Mongale, Head of the Provincial Department of Health,

Mr Lufuno Tshikovhi, Head of the Provincial Department of Economic Development, Environmental Affairs, and Tourism,

Ms Linda Nengovhela , Chief Director: Municipal Finance Management at the Provincial Treasury,

Mr Sibusiso Mpanza, Director-General (DG) for the Office of the Premier,

Mr Jimmy Mawelela, Deputy Director-General (DDG) for the Office of the Premier, and

Mr James Mashigo, Chief Director: Local Governance at the Provincial Department of Local Government and Human Settlements.

The delegation from the Ratlou Municipality consisted of:

Cllr Segametsi Ntladi, Executive Mayor,

Mr Tebogo Chanda, Municipal Manager, and

Cllr Agisanang Ramosidi, Councillor for Ward 6.

Chairperson's opening remarks

The Chairperson said that the invocation of Section 100 of the Constitution in the North-West province led to the establishment of the Ad Hoc Committee during the previous administration that had gone on an oversight visit to the province to deal with the issues raised during its meetings, including problems with corruption and service delivery issues. The current Committee had developed a specific approach in respect of the oversight visits and decided to revisit all the institutions that were visited in 2018 with the goal of ensuring that recommendations made were implemented and that wrongdoing was rectified.

While Members were conducting the oversight visit, they had been approached by members of the community who felt that their concerns were not being addressed. Specific issues were brought to the attention of the Provincial Government of the North-West, and the Committee had made a commitment that those issues would be followed-up on and addressed. The issues relating to the Provincial departments placed under administration were seen as severe and had negative implications on the state of the municipalities in the province, necessitating the Committee to engaged with the Provincial Department of COGTA. The situation was quite serious, and feedback was required as to how the Provincial Government would address the issues raised during the course of the Committee’s work.

The community of Madibogo Pan was involved in protests, as there had been service delivery issues since 2018. There were disruptions and burning of schools, other community facilities and other events in the province of the North-West, which had led to the collapse of the previous (fifth) administration. This had led to the intervention that was currently in the North-West after the National Government invoked Section 100 of the Constitution because of that situation, including in Madibogo Pan. The Committee had met with the community leaders who had arrived in the middle of a meeting during the Committee’s oversight visit to the province and asked for its intervention. That was the reason for the current meeting of the Committee -- if it had not been for that incident, this meeting would not have happened.

The Committee had identified the issue of Madibogo Pan as a microcosm of a bigger problem pertaining to how issues of the community were being responded to. It gave a clear sense of what was happening in the province -- whether communication between the people and government was effective or not; whether the government was responsive to the needs of the people or not; and whether issues raised by communities were addressed and attended to with the necessary pace, speed and tempo that was desirable. It was important that the Committee engaged with the issues.

There were differences between what the government was saying and what the community were saying. It was problematic, as there had to be good interaction, facilitation of issues, and the community needed to know what was happening and what the government was doing to attend to their issues. This was a typical case, showing that there was a need to respond in a way that inspired confidence. Madibogo Pan was one area where an example had to be made of how the relationship between the government and community was fostered.

The Section 100 intervention was because of community protests, and if the Committee failed to act decisively, there was a likelihood that this problem would arise again in the future. The goal was to ensure that the North-West was a province that had no disruption but was stable in a sense that it was capable of fulfilling its executive obligations. At the end of the day, the Committee must enforce accountability, and there had to be consequence management for those who were not doing what they were supposed to do. There must be constant interaction with the communities on issues they raise.

Feedback on Madibogo Pan Community Forum issues

The first item on the agenda was for the Committee to receive a briefing from the Office of the Premier, the Ratlou Local Municipality, and the North-West Provincial Department of COGTA, on the issues raised by the Madibogo Pan Community Forum during the Committee’s oversight visit.

Premier's opening remarks

Premier Mokgoro expressed appreciation of the exercise that the Provincial Government was embarking on with the Committee, and urged for some commitment from the government on addressing community issues. He said the understanding was that the essence of this meeting was about accountability and giving feedback. When people cried out about service delivery matters -- about water, housing, roads and so on -- they were feeling the pain, and the Provincial Government should not wait until its order of priorities allowed it to respond, and only respond at that moment. The Provincial Government should respond in a way that the convenience of the citizen was the issue that was prioritised.

He said that the meeting was a wonderful opportunity for the Provincial Government to demonstrate its care for communities. When the people of South Africa cried out about housing and other basic necessities, adequate and timeous responses were required. It was important that those in management and in power put themselves in the position of those people who were living without water so they could unlock the problem and start implementing solutions. This was the reason why there was local government in the first place -- so that the needs of the community could be addressed. The gaps must be filled in areas that needed the attention of local government so that the trust deficit with the community could be narrowed.

Background and breakdown issues raised

The briefing included the responses on the issues from the Provincial Departments of Public Works and Roads, Community Safety and Transport, and Education relating to the concerns raised by the Madibogo Pan Community Forum during the oversight visit. Mr Sibusiso Mpanza, DG. Office of the Premier, presented the briefing to Members.

The Committee raised issues relating to service delivery in a number of Provincial Departments, and requested the Provincial Government to respond to them. The issues pertained to the Department of Public Works and Roads, Department of Community Safety and Transport, and the Provincial Department of Education. The issues were broken down as follows:

The first issue was the request by the Community Forum to receive feedback from the Provincial Department of Public Works and Roads on the progress that had been made in terms of the Z482-road. It was reported that the road was located in the Ratlou Local Municipality and connected the villages of Madibogo and Madibogo Pan. The project would be implemented in the 2021/22 financial year. All the planning works had been finalised, and a tender was supposed to be advertised in the coming week.

The next issue was that the community had problems with the high levels of crime in the area, and the nearest police station was situated far away from the village. This issue was related to the Provincial Department of Community Safety and Transport management, which had been mandated to monitor and provide support to the South African Police Service (SAPS). However, the competence of establishing a satellite police station rested with the SAPS. As an oversight body, the Provincial Department of Community Safety and Transport Management would do an assessment of the Madibogo police station, as it was the one currently providing services. The assessment would include the police station’s resources and its capacity to provide services to its entire policing precinct, including Madibogo Pan. The assessment would also include police visibility, response time to complaints, crime patterns, and providing any other policing needs. Once the assessment was finalised, the findings and recommendations would be shared with the SAPS. Remedial action would be developed for implementation by the SAPS and monitored by the Provincial Department of Community Safety and Transport Management. A report with remedial action from the SAPS would be shared with the Provincial Legislature and the Committee through the Office of the Premier. This would be done and finalised within the next 14 days.

Regarding the Provincial Department of Education, an issue was raised by the Community Forum that with the community growing, an additional primary school was needed. A needs assessment and feasibility study would be conducted regarding the need for the primary school.

The Ratlou Local Municipality had been asked for an update into the R4 million that was earmarked for classrooms to address the issue of overcrowding. The Community Forum had highlighted that of the funding that was set aside, only the painting was done, and the contractor had converted the existing classrooms into an administrative block. According to the report from the school in 2013, Batsogile Middle School had received an allocation of R2.3 million for the renovations, which included roofing of the whole school, flooring, and paving for two blocks of the school. It was reported that no classrooms had been converted into an administration block, and all the funds were reported to have been paid to the contractor upon the completion of the project in 2014.

The Community Forum had requested that it received an update into the investigation of the sports facility that was budgeted for, but remained incomplete. The Provincial Department of Education had reported that the facility belonged to the Ratlou Local Municipality, and a written response would be provided.

The Provincial Department of Local Government and Human Settlements reported on the Madibogo Pan Housing Project. It reported that the contractor appointed for the project was Mmopa Civils -- for 100 units in Dikgatlhong, a sub-village of Madibogo which covered the area of Mareetsane. The contractor was appointed in 2019, and the project had moved extremely slowly. To date, 12 foundations and six wall plates had been built on site. The challenges included that the approved drawings dictated that the contractor excavate half a meter of the topsoil and import G5 material to be compacted, requiring a tipper truck that the contractor claimed was not available to be hired locally. It was reported that the contractor had been granted a geotechnical allowance with his contract, which covers any Geotech challenges, including excavations. The contractor had claimed the geotechnical allowances that he had submitted, but had yet to apply them to the houses that were being constructed. Should there be a need for additional funding, he and his engineer would have to make a case to the Provincial Department of Local Government and Human Settlements, which would then be evaluated to determine if there was a need. There was currently no need, and the contractor was simply not performing on the contract and should be put on terms, or the contract should be terminated.

Regarding the water scarcity, it was claimed that it remained a challenge, and that the water they had to purchase was expensive from the local supplier. While water was scarce in the area, it remained the contractors’ obligation to make their own arrangements. Some contractors had put in Jojo tanks or dug boreholes to ensure that they could continue with their contractual obligations. The contractor got allowances, and these should be used for the project. If he chose to buy water locally, the Provincial Department of Local Government and Human Settlements could not be expected to carry the cost on behalf of the contractor.

There was also a claim that there had been a delay in payment from the Provincial Department of Local Government and Human Settlements that had resulted in the stopping of operations for four months in 2021. According to the contractor, this had affected the projected cash flow, rending them unable to be active on site. The government’s records indicated that appropriate payments were made on 21 January (R48 164.62), 3 February (R104 280.30 and R36 123.47), and on 19 March (R139 040.40, R92 693.60 and R139 040.40, as per the contractual arrangements. The newest challenge cited by the contractor was the increased cost of materials during the COVID-19 pandemic. The price escalations had been noted, and the National Government was dealing with the matter. However, until the quantum was adjusted by the National Department of Local Government and Human Settlements, contractors were expected to work within the current quantum that had been allocated.

In conclusion, the Provincial Government had received reports which appeared to be from other site visits done at different intervals, with the latest being on 6 June 2021. The issues raised in the reports would be consulted on further, and written responses would be sent to the Committee in a timeframe agreed upon.

Remarks by Provincial departments

Adv Neo Sephoti, Head of the Provincial Department of Tourism, referred to the Madibogo housing project as set out in the briefing, and said that it was a project undertaken by the Provincial Government. In 2019, Mmopa Civils had been appointed to construct 270 houses in the different villages. The performance of the contractor had been unsatisfactory, and it was understandable that the communities had concerns. Every contractor had been given a geotechnical allowance in the area in which they operated. She confirmed that while water was scarce in the area, it remained the contractors’ obligation to make their own arrangements. Some contractors had put in Jojo tanks or dug boreholes to ensure that they could continue with their contractual obligations. The contractor received allowances, and they should be used for the project. The quantum could be adjusted only by the National Department of Local Government and Human Settlements, not by the Provincial Government.

Mr Molapsi, MEC for Public Works and Roads, responded that the budget allocation had been made to construct the road in the current financial year. The management had gone to the community to view the road in question and had confirmed the budget allocation. The project had been advertised, but the Provincial Department of Public Works and Roads could not yet confirm the appointment of a contractor.

Mr Molate Moremi, Administrator: Provincial Department of Public Works and Roads, confirmed that the budget allocation had been made to construct the road in the current financial year. The multi-year project would also be started in the current financial year and was at the tender stage. The project would be implemented as indicated. The Provincial Department of Public Works and Roads had already consulted with the communities, and there were no foreseen challenges or further delays in the project.

Mr Lehari , MEC for Community Safety and Transport Management, confirmed that an assessment of the capacity and resources of the Madibogo police station was being conducted to assess its ability to carry out the basic services required by law, including patrolling, combating crime and attending to the issues of the community. A report would be finalised to highlight the findings of the assessment and to outline the challenges that were faced by the police station and the general security sector. The capacity of the SAPS had to be strengthened. The report would be finalised within 14 days and submitted to the Committee.

Ms Semaswe, Head of the Provincial Department of Education, referred to the request raised by the Community Forum that because of the community's growth, an additional primary school was needed. She said that a needs assessment and feasibility study would be conducted regarding the need for the primary school. Regarding the funding for the classrooms, the issue of the R4 million referred to issues like the replacement of the roofing and the tiling at the existing school in the area. The funds had been paid to the contractor upon the completion of the project.

Cllr Ntladi, Executive Mayor of the Ratlou Local Municipality, spoke about the issue of the water challenges in the area. She said the Ngaka Modiri Molema District Municipality had been declared a Water Service Authority (WSA) in terms of Section 84 of the Municipal Structures Act and Water Services Act 108 of 1997, and was 100% responsible for theprovision of water services in the whole of the Ratlou Local Municipality. The Ngaka Modiri Molema District Municipality had appointed Sedibeng Water as the Water Service Provider (WSP) for the entire Ratlou Local Municipality area, and this had caused significant confusion in terms of who was responsible for the water service provision. Furthermore, there was a service-level agreement signed between Ngaka Modiri Molema District Municipality and Sedibeng Water for the implementation of a ground water source development project.

The Ratlou Local Municipality was currently assisting with its limited capacity in augmenting the provision of water services functions out of its good will, because of the fact that the community complaints were directed to its doorstep, and there was no clearly defined water services provision model or operations procedures from the Ngaka Modiri Molema District Municipality to respond effectively to the needs of the community.

There were major projects that had been initiated to address the water provision challenges, which unfortunately had not been completed, and this had exacerbated the emotive issue which was a basic right enshrined in the Constitution. This included the Ratlou-Setlagole Bulk Water Supply -- a project initiated five years ago, marred by contractual challenges and had not been completed -- and the Madibogo Bulk Water Supply project, which had been in the planning phases for some time but had not been started yet. The Ratlou-Setlagole Bulk Water Supply project cost over R94.96 million, with a budget for the 2021/22 financial year of R10.5 million, and the Madibogo bulk Water Supply project cost over R43.26 million, with a budget for the 2021/22 financial year of R10 million.

The interim measures included water tankering to augment and mitigate the water supply challenges. The Ratlou Local Municipality had procured two mobile water tankers and was awaiting their delivery to augment water supply in its villages. A service provider had also been appointed for the drilling of boreholes as and when required, especially in hot spot areas, with the current focus on facilities. It was recommended that the Ngaka Modiri Molema District Municipality should fast-track the completion of their water supply capital to ensure reliable water supply was rendered to the community. In addition, a masterplan should be conducted of the underground hydraulic  water catchment, in order to ascertain the capacity of the underground water. The Ratlou Local Municipality would continue to assist with this function, irrespective of the function residing with the district.

The Chairperson proposed that in the interest of time, the delegations should touch on the issues pertaining to those raised in the memorandum provided to the Committee by the community. He asked that the focus be directed at how the Provincial Government would solve the water challenges of Madibogo Pan.

Cllr Ntladi commented that she had not seen the memorandum provided to the Committee by the community, and asked that the community members elaborate more on the issues.

The Chairperson asked Cllr Ntladi to tell the Committee what she knew about the water shortages in the Madibogo Pan area, and what was being done to solve the problems.

Cllr Ntladi responded that there were water shortages in Madibogo Pan, and in the wider Madibogo area. Water tanks had been arranged and were currently used by the communities in Madibogo Pan. Another contractor had to be appointed as soon as possible in this regard.

The Chairperson said that the Committee would come back to the issue, as there was a lot of gaps resulting from Cllr Ntladi not being familiar with the contents of the community’s memorandum. He invited the leaders of the community to state their cases before Members, and to indicated their satisfaction with the responses given by the Provincial Government and the municipalities in the North-West province.

Inputs and comments by Madibogo community leaders

Mr N Soka and Mr N Reoagile, Madibogo community leaders, thanked the Committee for the opportunity. They reported that there had been an outcry from the community in general, and disappointment in the responses given by the Provincial Government. The Community Forum had been established since 2017 to put forward the issues of the general Madibogo community regarding the challenges in service delivery. The Ratlou Local Municipality was mandated to cater for the needs of the community, and to assist the community leaders in attending this meeting, yet no help had been received. It was clear that the municipalities were unable to deal with the issues that were directly within their responsibilities.

The memorandum had been received by the Ratlou Local Municipality in 2017, and it was unacceptable for the mayor to indicate that she was not familiar with the issues raised. The community was losing confidence in the municipality and the local government, since the same issues had been raised repeatedly with the municipality. Regarding the issues relating to the Provincial Department of Education, the renovation in 2013 and its presentation had been skewed and did not represent the real situation on the ground. The accommodation of learners because of rationalisation had been promised, but there had been no delivery on the promise. The unfinished houses remained an issue, and the memorandum touched on the extent of the issue. The Community Forum was requesting the Provincial Government to do a thorough investigation as to why the houses had not yet been built, and to give feedback on the municipality’s failure to deliver as a direct service provider. Proper responses and a plan were required on the way forward, since very little action had been taken to resolve the issues. The projects dated back as far as 2011, and yet no progress had been made. It was crucial that specifications were given to the Community Forum regarding the issues that had been put forward.

The Chairperson thanked the community leaders for their input. He said it was in the best interests of the Committee that the issues that had been raised be addressed, as they were at the centre of the community protests and disruptions in 2018. This had led to the collapse of the Provincial Government in the North-West province, necessitating the invocation of Section 100 of the Constitution through intervention.

Discussion

Mr S Du Toit (FF+, North-West) suggested that the delegations be allowed to respond to the allegations and issues raised by the community leaders, because this would determine the questions posed by Members. The allegations that needed attention pertained to that the money was not spent on the correct projects.

The Chairperson responded that in the interests of time, Members should ask their questions as they understood the subject matter of the briefing and the discussions.

Mr Du Toit said that Members would be wasting their time asking questions about a school that was not built. He asked for clarity on whether the school had been closed down and whether the learners would be merged into another school. It was his understanding that there were two schools as part of the rationalisation process of the Provincial Department of Education. One school had been closed, and then all the learners were transferred to the new school where renovations were made. He asked that the situation be clarified so Members could have the correct facts and information while posing questions.

Ms Matsemela, MEC for Education, responded that after the rationalisation the school was not in a good state, and had been renovated. Learners were then taken to the renovated school. The community had wanted the learners to remain at the first school, and the funds were used to renovate the second school. She asked that the community leaders provide more information relating to the R4 million so that the Provincial Department of Education could take the appropriate steps to launch an investigation.

Mr Du Toit thanked the MEC for Education for the clarity provided.

Referring to the contractor that was appointed to build the houses in the Madibogo housing project, he said that based on his calculations, funds that were paid to the contractor to date amounted to R 559 000, with the last payment being made in May 2020. He asked whether the Provincial Department of Local Government and Human Settlements conducted a vetting processes before awarding contracts to service providers, and whether there were departmental officials who conducted site inspections to ensure that the work done was according to plan. He also asked whether the Department ensured that there were penalty clauses in contracts before being awarded to the service providers. He expressed concern that the funds were paid to the contractor with the project remaining incomplete because the contractor claimed to be unable to hire certain machines and equipment locally. Would the Department put the contractor on terms or terminate the contract? The delegation had indicated that this would happen, while another official had indicated that the task had been advertised again. It seemed as if there was a miscommunication within the offices of the Provincial Departments. 

Mr I Sileku (DA, Western Cape) said it was worrisome that the issues raised in previous and current engagements with the Provincial Departments and municipalities were selectively addressed, and that insufficient responses were given. Clear and honest responses were required from the Provincial Departments and municipalities to ensure that the appropriate course of action was taken in addressing the community’s challenges within the North-West province. There was a lot of confusion surrounding the issues raised in the memorandum from 2017. He asked for clarity on the status of projects that were implemented by the Ratlou Local Municipality in the Madibogo Pan area, and whether these projects were monitored by the municipality and the Provincial Government. He expressed concern about the inadequate responses from the Provincial departments and the state of preparedness by the Municipal Mayor. The continued slow progress was unacceptable. It was problematic that the mayor had not seen the memorandum, and it was useless to have her attending the meeting if she did not know about the issues that she was expected to respond to.

Ms M Gillion (ANC, Western Cape) agreed with Mr Sileku’s comments regarding the inadequate responses from the Provincial departments and the state of preparedness of the Municipal Mayor. However, the mayor had been supposed to receive a report from the previous administration to be able to continue the work on the issues raised in the memorandum, showing a miscommunication from the previous administration. The next step that should be followed was to take the reports from the community and the Provincial Departments regarding what had been done and what had not been done. The Committee needed to be cognisant of the unrest and unhappiness in the communities of the North-West province, which could partly be attributed to the lack of communication between the community, the local government and the Provincial Government.

Ms C Visser (DA, North-West) said that the collapse of government and the current state of affairs in the North-West province was a serious concern. The Committee was concerned after seeing the conditions of the school infrastructure around the Madibogo Pan area and had become concerned about the rest of the schools in the North-West province. She emphasised that most communities and school governing bodies were also concerned about the level of infrastructure vandalism, lack of security, and maintenance issues at the schools. The Committee was of the view that more schools in the area should be visited in the near future, especially schools in the rural areas. The schools were in a terrible state of dilapidation. It was clear that the Madibogo community was unhappy about the conditions of their schools, including scholar transport and water-related issues.

Ms Z Ncitha (ANC, Eastern Cape) agreed with Members regarding the lack of adequate communication between the Provincial Departments and the communities. The issue of the high crime rate remained a problem, and further responses from the Provincial Departments were required.

Mr S Zandamela (EFF, Mpumalanga) commented that the progress made on the issues reflected on the government. The implementation of Section 100 could comfortably raise a view that there had been tremendous progress that must be appreciated. The Committee must be cognisant of all the progress that had been reported during the scope of its work. The presentation had also illustrated that more had to be done in terms of holding the service provider accountable, especially when the contractors find themselves on the wrong side in terms of timelines, when the agreed-upon penalties had to be imposed. The rationalisation of schools was a national issue, and the Provincial Department of Education, as a policy matter, had invoked the mechanism of rationalisation. It was important to address the issues relating to the relocation of pupils. In addition, concerns had been raised about the 30% fee for government contracts being demanded by contractors, and the impact this had on the government’s ability to complete projects.

The Chairperson stated that the community of Madibogo Pan had been involved in service delivery protests since 2018. There had been disruptions and burning of schools and other community facilities, and other events in the province which had led to the collapse of the previous administration. It had led to the intervention that was currently in the North-West after the National Government invoked Section 100 of the Constitution because of that situation, including in Madibogo Pan. If the Committee failed to act decisively, there was a likelihood that this problem would arise again in the future. The goal was to ensure that the North-West was a province that had no disruptions and was stable in a sense that it was capable of fulfilling its executive obligations. At the end of the day, the Committee must enforce accountability, and there must be consequence management for those who were not doing what they were supposed to do. There must be constant interaction with the communities on issues they had raised.

Premier's response

Premier Mokgoro said that the Provincial Government were leaders, and the Committee could not be sitting here and saying things that would give justification for members of the community to get incited and bring about instability in the province. He regarded the Section 100 intervention as the most unfair oversight he had ever experienced. The Committee’s approach to oversight needed to be discussed very thoroughly, as it left much to be desired. He said that before judgment was passed on the Provincial Government, the Provincial Departments must see the memorandum.

He asked that communities should not be incited, and said the Chairperson's comments were tantamount to incitement. When the Executive Council of the North-West province was invited to this meeting, they had not been informed that there would be some sector of the community leadership present. He called for the verification of the community leaders, to check if they would indeed be recognised by the community as their leaders. In all decency and in the interests of transparent governance, the Executive Council should have been informed that the community leaders and representatives of the Community Forum would be present.

Discussion

The Chairperson responded that the Committee had met with the community members through extensive engagements, and had been provided with the memorandum. These issues had to be addressed as a matter of urgency. The Committee’s work continued from that of the previous administration. The objectives of the multi-party Committee were to bring stability to the province. He advised the Premier to reduce his concerns to writing so that they could receive proper attention and be addressed accordingly.

Ms Gillion said that she was disturbed that this was not the first time that serious allegations had been made by the leadership in the North-West province while the Committee had been conducting its work and exercising its oversight. It was unfortunate that the Chairperson was originally from the North-West province, because if he had been from another province then the Premier’s outrage would not have been directed against him. The work of the Committee was a collaborative effort of all political parties with the goal of bringing stability to the province.

State of municipalities in North-West province

The second item on the agenda was a briefing by the Provincial Department of COGTA on the state of municipalities in the North-West province. The briefing included a review of organisational structures, an update on the status quo regarding the appointment of senior managers for the province, the Bojanala District, the Ngaka Modiri Molema District, the Dr RS Mompati District, and the Dr Kenneth Kaunda District. In addition, it also included an overview of the governance structures relating to the municipal audit outcomes, unauthorised, irregular, and fruitless and wasteful expenditure, political stability, financial management and viability, an overview of financially distressed municipalities, and an analysis of the municipal debtor’s age. The Committee was also presented with an overview of the turnaround strategies and interventions.

Mr Mashigo, Chief Director: Local Governance, Provincial Department of Local Government and Human Settlements, North-West province, presented the briefing to the Committee.

Background and introduction

The purpose of the briefing was to update the Committee regarding the state of municipalities in the North-West province. Section 152(1) of the Constitution stipulated that the mandate of local government was to provide democratic and accountable government for local communities; to ensure provision of services to the communities in a sustainable manner; to promote social and economic development; to promote a safe and healthy environment; and to encourage the involvement of communities and community organisations in the matters of local government. These constitutional mandates remained the foundation of the Provincial Department of COGTA to put necessary systems and controls in place to change the phase of local government in the North-West province.

Section 152(2) of the Constitution stipulated that a municipality must strive, within its financial and administrative capacity, to achieve the mandate as set out in Section 152(1). Section 153 of the Constitution stipulated that a municipality must structure and manage its administration and budgeting and planning processes to give priority to the basic needs of the community and to promote the social and economic development of the community. The National and Provincial Government in terms of Section 154 of the Constitution must by legislative and other measures support and strengthen the capacity of municipalities to manage their own affairs, to exercise their powers and to perform their functions.

It was reported that municipalities in the North-West province faced the following challenges:

• the failure and collapse of governance and administrative systems in municipalities;
• the flouting of legislative provisions and prescripts for supply-chain management procedures;
• the worsening audit outcomes with increasing trends in unauthorised, irregular, fruitless and wasteful (UIFW) expenditure;
• the non-compliance with the Local Government Municipal Finance Act 56 of 2003 and other legislative conditions that led to withholding of equitable shares and conditional grants over the years;
• the inability to provide sustainable, uninterrupted, and quality services; and
• weak public participation and accountability systems.

It was reported that many municipalities did not comply with their legislative and regulatory mandate to review their organisational structures as prescribed.

Appointment of senior managers:

It was reported that the posts at municipalities had been filled as follow:

19 out of 22 municipal manager posts filled, with one female incumbent),

18 out of 22 posts filled for chief financial officers, with three female incumbents),

15 out of 21 posts filled for directors of engineering, with two female incumbents,

17 out of 22 posts filled for directors of Corporate Services, with 11 female incumbents, and

15 out of 20 posts for senior managers filled, with five female incumbents.

In total, there were 35 vacant posts out of 144 posts, and out of the 109 posts that were filled, 33 were filled by female incumbents. The Committee was provided with a breakdown of the appointment of senior managers for each municipal district (see the attached presentation).

Municipal Public Accounts Committees and audit outcomes

The main purpose of the Municipal Public Accounts Committees (the MPACs) was to exercise oversight over the executive functionaries of council and to ensure good governance in the municipality. This would include oversight over municipal entities.

The root causes for the non-effectiveness of the MPACs included the lack of political and administrative will to support the MPACs, the lack of commitment by members, the lack of leadership by the chairpersons of the MPACs, the failure to take decisive disciplinary action against non-committed members, the frequent reshuffling of MPAC members, and that MPACs were not provided with the tools of trade and office space to perform their work. In addition, the MPACs were not provided with appropriately qualified support staff, meetings were not held, or a quorum was not established when meetings were called. There was instability within the MPACs, and non-investigation of UIFW expenditure.

The audit outcomes of the municipalities were outlined to the Committee. The root causes for poor performance included:

• the lack of financial records, which emanated from inadequate and poor records management capacity,
• the non-compliance with supply chain management (SCM) legislation, which had an impact on the increase in UIFW expenditure,
• an increase in UIFW not being investigated as required by Section 32 of Local Government: Municipal Finance Act,
• the non-review of annual financial statements prior to submission to the Auditor-General of South Africa (AGSA),
• the lack of requisite capacity, consequence management, and political oversight, and the absence of senior managers during the audit period.

Serious concerns of political instability in the North-West province’s municipalities had been observed, characterised amongst councillors. This had led to the removal of mayors and speakers, weak oversight and leadership, the submission of motions of no confidence in mayors, community protests, labour instability, and the resistance to provincial interventions. The approaches taken had included the establishment of a working team led by the MECs, where speedy resolutions to community and municipal service delivery were being attended to for resolution, the red tape of government processes being addressed, and the establishment of a rapid response task team to deal with community protests.

Financial management and infrastructure development:

Municipalities in the North-West province had serious financial challenges which threatened their sustainability and service delivery. Most of the key challenges were part of the game changers as identified by the National Treasury (see the attached presentation). Generally, the municipalities were unable to collect revenue due to the following reasons:

• municipalities did not conduct meter readings, and in some instances, there were no meters, or they had been vandalised,
• some properties were not billed, or there was in-accurate billing due to the valuation roll not being reconciled to the billing system,
• no follow up on customer complaints, and as a result consumers refused to pay,
• some municipalities were not issuing statements of account to the consumers,
• municipalities were not implementing credit control measures where outstanding accounts were not settled,
• infrastructure such as water and electricity meters were damaged or in some instances there were illegal connections.

In addition, the inefficiencies of municipalities had resulted in the drastic decline in collections of billed revenue. These low levels of revenue collection threatened municipalities’ sustainability as going concerns, as well as the ability to deliver key critical services to the communities.

Municipalities in the North-West province had been experiencing challenges in particular in respect of providing uninterrupted and sustainable services to its communities. The performance analysis reflected that the province was still faced with challenges relating to the provision of uninterrupted, quality and sustainable water services, the poor functionality of water and waste water treatment plans, spillages of sewage affecting the health of households and businesses, poor roads and storm water drainage systems, old infrastructure and poor maintenance.

Turnaround strategy and recommendations

The province had developed a turnaround strategy focusing on the short term, medium term and long-term activities to bring change to the municipalities. The strategy provided for a change in the orientation of the municipalities. It required bold leadership with a political will which appreciated the need to improve the political management of municipalities, and who were responsive to the needs and aspirations of local communities. In order to achieve this, the following were required:

• Mayors and Municipal Mayoral Committees with a vision to change, and the calibre of leadership to drive the change process and the developmental agenda,
• speakers of councils who were able to effectively manage the business of the council and lead it in its engagement and outreach programmes to earn back the trust of our communities,
• councillors that would inspire and organise for the common purpose of serving their communities, and creating a dynamic link with their constituencies,
• municipal managers and senior managers that understand the core mandate and orientation, and their specific role in delivering the local government vision as envisaged in the White Paper, and act in a manner that ensures that local government primarily serves its people by delivering basic services.

The province had taken a resolution to deploy a multi-skilled intervention teams compromised of senior management service (SMS) personnel to assist municipalities with the challenges experienced currently. Provincial departments had already submitted the names of the SMS members for deployment to municipalities. The framework for the intervention approach had been compiled. The terms of reference specific for each municipality were being finalised. It was recommended that the Committee noted the information presented.

Discussion

Mr Du Toit was concerned about the political infighting in different municipalities, which hindered service delivery to the people, including the fact that administrators were being redeployed from one municipality to another without achieving good results. He asked for clarity on this issue.

Ms Visser agreed with the concerns of Mr Du Toit. The issue had the consequence of the public wanting to withhold payments from the municipality. Her concerns included that municipalities were held being hostage by communities because of their inability to deliver services, and yet rates were being paid and no statements of accounts were received by the communities. How would the municipalities be resuscitated? She was concerned about the political infighting in different municipalities, and clarity was needed on how this would be resolved.

Ms Gillion said there seemed to be a breakdown in the communication between the people of the North-West province, the local government, and the Provincial Government. This was demonstrated by the concerns that had been raised by the Community Forum in response to the feedback presentation made by the Office of the Premier and its Executive Council. Regarding the intervention plans, she asked for a breakdown of the timeframes for the interventions planned so that the Committee could monitor their impact.

Mr Sileku asked whether it was the right time to implement Section 139(c) of the Constitution, given that local government elections were fast approaching this year. Had there been any consequence management and recovery of money relating to the UIFW expenditure? He cautioned the Provincial Government that the issues raised by the public should be attended to and resolved with speed, so that the stability of the North-West province could be established and maintained.

COGTA's response

Mr Mashigo responded that the fixing of municipalities had nothing to do with the elections, and added that even the AGSA could not form an opinion regarding some municipalities, as there were no records. He mentioned that some municipalities were unable to implement court orders, and this became a contempt of court order. Some municipalities had even interdicted the national intervention. He pointed out that the National Government was currently busy with enabling legislation to guide the interventions for both Sections 100 and 139 of the Constitution.

The Chairperson thanked the delegations in attendance for the information presented to the Committee, and thanked Members for the concerns raised and inputs made.

The meeting was adjourned.