DCoG, DTA, MISA 2023/24 Annual Performance Plans; with Ministry

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Meeting Summary

Cooperative Governance 

Traditional Affairs

Strategic Plan  

Municipal Infrastructure Support Agent

In an in-person meeting, the Committee received a briefing from the Departments of Cooperative Governance and Traditional Affairs on the Revised Strategic Plan 2020-2025 and the 2023/2024 Annual Performance Plan, as well as the Annual Performance Plan for the Municipal Infrastructure Support Agent 2023/2024 and the Revised Strategic Plan 2020-2025.

The Department of Cooperative Governance consists of five programmes with 21 outputs and 34 output indicators, highlighting that R23.4 million is allocated towards capital expenditure.

The total budget for 2023/2024 for the Department of Traditional Affairs is R193 million, which will increase to R209 million in the outer year.

Over R47 million of the 2023/2024 budget is allocated to the transfers and subsides, which is further allocated to the CRL Rights Commission and the Commission on Khoi-San matters which accounts for about 46% of the budget.

MISA’s Annual Performance Plan consists of three programmes, Administration, Technical Support Services and Infrastructure Delivery Management Support with a total of 22 output indicators that are linked to the medium-term strategic framework outcomes. Majority of the budget is allocated to the paying of technical support staff.

Members asked about the 22 dysfunctional municipalities, the illegal initiation schools where there have been reports of abductions and some cases amputations; the recognition and legalisation of the traditional Khoi-San council, and the non-existence of traditional leaders recognised by law in the Western Cape. They raised concerns about the capacitation of municipal officials to maintain infrastructure.

Meeting report

Opening Remarks by the Chairperson

The Chairperson opened the in-person meeting by welcoming everyone. He further emphasised the importance of the Department of Cooperative Governance and Traditional Affairs (COGTA), stating that it is the most important department in the country, as it deals with intergovernmental affairs and cooperative governance within the country. The Department also provides basic services to the people. The Chairperson added that the Department deals with a critical component of traditional affairs because South Africa is a country rooted in traditional leadership, governance and authority.

Department of Cooperative Governance Revised Strategic Plan 2020-2025 and 2023/2024 Annual Performance Plan

The delegation consisted of:

Mr Mbulelo Tshangana, newly-appointed Director-General of COGTA

Ms Thembi Nkadimeng, Minister of Cooperative Governance and Traditional Affairs

Mr Zolile Burns-Ncamashe, Deputy Minister of Cooperative Governance and Traditional Affairs

Dr Kevin Naidoo, Deputy Director-General: Policy, Governance and Administration

Dr Elias Sithole, Deputy Director-General: Head of National Disaster Management Centre

Mr Mpho Mogale, Deputy Director General: Head of National Disaster Management Centre

Ms Funani Matlatsi, Chief Financial Officer.

2020-2025 Revised Strategic Plan

There are six Department of Cooperative Governance (DCoG) outcomes:

- Function inter-governmental governance systems

- Financially viable municipalities

- To sustain good municipal governance

- Citizens engaged and participating in government

- Basic services delivered to all citizens in an effective and efficient manner

- Effective and efficient internal corporate governance systems.

2023/2024 Annual Performance Plan

The DCOG consists of five programmes, with a total of 21 outputs and 34 output indicators:

- Administration

- Local Governance Operations and Support

- Policy Governance and Administration

- National Disaster Management Centre

- Community Works Programme (CWP).

Budget Allocation:

- R315.3 million was allocated to the administration programme.

- R9.2 million was allocated to the Local Governance Operations and Support programme.

- R96.9 was allocated to the Intergovernmental Policy Governance and Administration programme.

- R932.2 million was allocated to the National Disaster Management Centre programme.

- R4.3 billion was allocated to the Community Works Programme.

- R34.7 million was allocated to the compensation of employees.

- R4.7 billion was allocated to goods and services.

- R116.6 billion was allocated to subsidies.

- R23.4 million was allocated towards capital expenditure.

See attached for full presentation


Mr C Smit (DA, Limpopo) asked how the Department would plan on reducing the number of non-financially viable municipalities. An example can be made with the Mookgophong Municipality and Modimolle Municipality, which were both financially non-viable municipalities that were combined to form one municipality, the Modimolle-Mookgophong municipality. In its current state, the unified municipality is less non-financially viable.

Mogalakwena Local Municipality in Limpopo has a budget of R1.6 billion, with R1.3 billion being operational and R300 million being capital budget. Previously, the budget was a 50/50 split. If the issue is due to those who were illegally appointed in the municipality, will these people be addressed, as this has a negative impact on the municipalities’ capabilities to deliver services to the people of the community?

He highlighted that according to the National Veld and Forest Fire Amendment Bill, municipalities located in an area within a Fire Protection Association of South Africa must join any fire protection associations registered in that area. In the case of Mogalakwena Municipality – the municipality is not registered with any fire protection association and is thus not contributing financially to an association. Mr Smith will submit a written question to the Department, requesting the list of municipalities not registered to the association and in the designated area.

What role does the Department play in the decision-making on the demarcation of that board, as it has implications on the financial viability of municipalities?

Regarding the communal and tribal land, does the Department plan to include them in contributing towards rates and taxes in municipalities, as there are people who build expensive homes, who could contribute towards the rates and taxes and thus the overall operation of municipalities?

What will the Department do to prevent the abuse of interventions for political and factional battles in municipalities, as the municipality often still comes out of the situation worse off than before? What are the clear criteria that determine whether interventions should take place or not?

He asked why the Department is preventing municipalities from using a portion of the conditional grants to maintain and upgrade existing infrastructure in towns. He noted that, according to municipal officials, municipalities cannot allocate grant funds to upkeep and upgrade infrastructure in towns. This prevents municipalities from using a portion of the conditional grant for upgrading existing infrastructure in towns, specifically in the case of small towns. He asked if there is a study or report on the infrastructure in municipalities that need to be upgraded.

Mr R Badenhorst (DA, Western Cape) asked for clarity on the section that highlights the vision and speaks on district development model one plan (DDM), more specifically, details on what the plans entail. How many dysfunctional municipalities were there in the previous financial year? What is the Department doing to ensure municipalities adhere to the grant specifications?

The presentation highlighted that there are priority disaster areas. Which are these areas? Which are the 40 municipalities being targeted to prevent, prepare and mitigate disaster risks? What are the strategies?

What was the budget for the Community Work Programme (CWP) in the financial year 2022/2023? What is the value of the irregular expenditure highlighted? How did the irregular expenditure occur? What is the Department doing to recover the funds, and how will it prevent this from happening in the future?

Mr K Motsamai (EFF, Gauteng) raised concern about the annual target dates on the administration programmes being set for the same date being 31 March 2024. What are the cost delays for tabling the intervention and monitoring bill?

How has the Department supported Emfuleni Local Municipality utilising the Municipal Infrastructure Grant (MIG) funds?

He asked which 66 municipalities under programme three will be supported by the Department to ensure the appointment of qualified senior officials. What are the 14 municipalities under programme four that will be supported in implementing the disaster management strategy? He was concerned that the presentation lacked detailed information on which municipalities will be assisted per province.

Ms A Maleka (ANC, Mpumalanga) asked the Department about monitoring MIG allocation procedures, especially to the dysfunctional municipalities.

Under programme four, which are the ten municipalities implementing the fire safety and prevention strategy? Are the 220 000 people participating in the CWP – is it specific to all provinces or specific district municipalities?

Ms S Shaikh (ANC, Limpopo) stated that the District Development Model and the Intergovernmental Relations Framework Act should be fast-tracked, as the Department should consider the key and timely steps within the approval process concerning the National Assembly and the National Council of Provinces. They would prefer that the legislation is approved during their term of Parliament.

There are three pilot projects in the DDM. However, there is no legislative framework to guide these projects. She asked the Department if there are lessons learnt from the 15 municipalities that can be implemented in the three pilot project to meet the target set out by the Department.

Which district municipalities are being targeted for assistance, and which district municipalities have no project in relation to the DDM?

With regards to the 22 dysfunctional municipalities, how are these municipalities being identified? Does it include municipalities with unfunded budgets? She requested detail on the location and names of the identified municipalities.

She requested a detailed breakdown of the 30 municipalities with the Spatial Planning and Land Use Management Act (SPLUMA) complaint spatial development framework. She further asked how matters relating to SPLUMA implementation and traditional leaders are being addressed.

Mr Smit suggested to the Minister that when a bill is introduced, it be first introduced to the National Council of Provinces before the National Assembly, so that the internal processes are dealt with before it is presented to the National Assembly.

He raised concerns about the function of local municipalities. He stated that the purpose of district municipalities was to provide expertise to the municipalities, but this has not been occurring as of late. How does the Department plan to address the matter?

The Chairperson stated that the Department had identified 66 municipalities as dysfunctional two years ago. However, the Chairperson is concerned about the little improvement within these municipalities. The Chairperson asked whether or not the Department is satisfied with its efforts to support and uplift these municipalities from their dysfunction, and for the reasons as to why the municipalities are not improving.

At present, the metro municipalities across the country are in a state of crisis. Three trips to Gauteng were postponed by the Member of the Executive Council (MEC). The Chairperson stated that the MEC would have to be summoned to appear before the Committee. The Western Cape, specifically Cape Town, is not spending the budget of the municipal infrastructure, which is evident in the problems presented in the townships.

The Chairperson stated that a special focus needs to be placed on the performance of metros, as the metros carry the biggest budget in the country yet when they are in distress, people living in those metropolitan areas suffer. Is there a specific approach developed by the Department to target these metros? MECs must be present to answer so that the Committee can be informed of the magnitude of issue at hand.

The Chairperson highlighted his concern on the monitoring support intervention legislation and the slow progress of the Bill, as well as the inconsistency on how interventions are made. The Chairperson stated that even when prevention measures take place, there are issues raised in the intervention processes and procedures.


Minister Nkadimeng provided clarity on the assessment tool used to classify dysfunctional municipalities. The assessment tool with five indicators relating to stability in governance, service delivery, financial management, unfunded or funded budget, and administration within the municipality. If the municipality ticks all five indicators, it is classified as dysfunctional. 22 of the 66 municipalities tick all five indicators for a dysfunctional municipality. However, some municipalities do not fit all five indicators but are still considered dysfunctional.

The Minister stated that there are difficulties when placing municipalities under intervention, whether it be at a provincial or national administrative level. For example, in the case of Mangaung and Enoch Mgijima, the national administration does not have the power by law to dissolve the council when they disapprove of national intervention measures. Municipalities can decide not to receive the members of the Department to assist. Oftentimes, contestations, as well as political interference, occur within municipal offices.

The Minister further highlighted that intervention by the Department is not a permanent procedure; it is only to assist municipalities. There is the issue of high turnovers within municipalities regarding appointments and resignations causing a negative impact on the intervention process.

The Department will provide a written response to the council regarding a detailed report on dysfunctional municipalities, issues with SPLUMA and the ten municipalities, and the progress on the monitoring bill.

Department of Traditional Affairs 2023/2024 Annual Performance Plan

The plan was presented by Mr Mashwahle Diphofa, Director-General, Department of Traditional Affairs (DTA).

Mr Diphofa said the Department works with the Institution of Traditional and Khoi-San Leadership to ensure the institution is oriented towards community development.

The Department has compiled a report known as the Organisational Performance Information Compliance Management Plan (OPIM) and the Corporate Financial Information Management Plan (CFM). It highlights the organisational performance in relation to HR, handling of grievances and compliance issues.

One of the priorities of the Department is to support the legal constitution of the Khoi-San Leadership Council, as referenced in section 63(4)(c) of the Traditional Khoi-San Leadership Act. Another priority is ensuring that the four Local houses of Traditional and Khoi-San Leadership actively participate in Eastern Seaboard initiative, as most of the development will occur on communal land. The Department is focused on reducing the number of illegal initiation schools with an annual target of 20% reduction. There is no recognised traditional leadership in the Western Cape under the law.

Budget Allocations over the Medium-Term Period

The total budget for 2023/2024 is R193 million, which will increase to R209 million in the outer year. Over R47 million of the 2023/2024 budget is allocated to transfers and subsidies. Allocations to the CRL Rights Commission and the Commission on Khoi-San Matters account for about 46% of the budget.

See attached for full presentation


Ms Shaikh asked the Department to elaborate on the challenges faced around implementing the Traditional and Khoi-San Leadership Act and the challenges and concerns related to establishing Khoi-San leadership. She stated that the council would like to see the establishment of Khoi-San in the Western Cape before the end of their term.

The Department stated a 20% reduction in terms of the Customary Initiation Act. She asked for clarity on what the 20% reduction implies with regard to the safe initiation schools.

What is the location of the ten traditional mining communities the Department is assessing under the social labour plan?

Mr Badenhorst raised concern about the 50% allocation of the budget towards salaries which is said to be quite high.

He stated that initiation takes place during the summer months of the year. The initiation schools take place in areas protected by the Fire Protection Act, which states that fires cannot be made at a certain time of the year. However, during the initiation process, fires are made. How does the Department assist municipalities in mitigating this issue?

Mr Smit raised the issue of the conflict amongst traditional leaders regarding appointing the rightful leader in terms of royalty. He highlighted that, at times, the matter of leadership is politically driven. What frameworks are in place to ensure there is no political inference in appointing traditional leaders, and how will the Department see that a line of succession is established to assist in the future?

He raised concerns about the selling of land by tribal leaders. He asked the Department whether or not there are systems in place to audit the selling of the land. How does the Department ensure accountability in regulating the funds, so that the money benefits the entire municipality and not just the individuals?

There exists conflict between the tribal leaders and local municipalities when it comes to establishing new residential areas. How will the Department mitigate the conflict to ensure that basic services and infrastructure such as water, electricity, street lights and roads are provided to these communities?

The Chairperson highlighted that a summit was held in March with the President and traditional leaders, which seven Members of the Committee attended to understand the issues faced by traditional leaders and affairs. The annual plan presented by the Department does not cover important topics mentioned in the summit – for example, the issue of tools of trade for Khoi-San leaders was raised in the summit yet not addressed in the Department’s presentation.

The Chairperson stated that two research reports have identified the gaps in existing policies. He asked how the Department plans on addressing this matter.

The Customary Initiation Law only speaks on the illegal schools operating but does not touch on the injuries, kidnappings, and abductions that occur in the schools and amputations. The Chairperson mentioned that traditional leaders at the summit raised another key issue: some councils, such as the anti-corruption council, inhibit their participation, as mandated by section 81 of the Municipal Structures Act.

Mr Smit indicated that the royal house in Mpumalanga lodged a dispute with the MEC in MP. He asked the Committee to comment on the matter and provide an indication of whether the dispute had been resolved.

The Chairperson raised the issue of religious ‘fly-by night’ churches which, in many instances, take advantage of people and create a business from it. The Chairperson asked the Committee if there is a possible solution and measures to regulate these churches, as some border on criminality and extreme immorality.


Mr Diphofa stated that, according to the law, the senior traditional leadership in MP is dealt with at a provincial level, so the Department will collect the information and provide a report on the matter to the Committee.

Regarding the issue of the land and constitutional traditional councils, majority of the traditional councils are not recognised in terms of the law even though the senior traditional leader is recognised by law municipalities, which raises issues on the selling and occupying of the land. An issue raised by traditional leaders is that SPLUMA does recognise their existence and does not apply to traditional and communal land. He stated that the inter-ministerial committee is working together to address the issues raised by the traditional leaders. However, it is still under consideration by the Presidency.

Mr Smit asked for clarity on whether or not the selling of the land is illegal.

The Chairperson suggested that the Department submit a written formal response detailing the legality of the selling and ownership of traditional and communal land.

Municipal Infrastructure Support Agent Annual Performance Plan 2023/24 & Revised Strategic Plan 2020-25

The presentation was done by Ms Mapatane “Pati” Kgomo, acting Chief Executive Officer, Municipal Infrastructure Support Agent (MISA).

MISA Mandate:

- To render technical support to municipalities by undertaking broad functions, including effective infrastructure planning to achieve sustainable service delivery

- To support municipalities in the implementation of infrastructure projects

- To assist municipalities with the operation and maintenance of municipal infrastructure, as many municipalities are suffering due to neglect

- To assist municipalities in building capacity to undertake effective planning, delivery, operations and management of municipal infrastructure.

Revised Strategic Plan 2020-2025:

Changes were made to the revised Strategic Plan 2020-2025 in alignment with the revised MTSF 2019-2024, and the Department of Planning, Monitoring and Evaluation (DPME) recommendations. Two new outcomes and three new outcome indicators were added to the strategic plan:

-outcome: A capable and ethical government

-outcome: Quality and quantum of infrastructure investment to support growth and job creation

-outcome indicator: improved compliance on infrastructure procurement-related legislation

-outcome indicator: number of district and metro spaces with identified infrastructure-related interventions implemented

-outcome indicator: number of municipalities supported to access funding for infrastructure investment through leveraging existing national transfers and other innovative mechanisms.

Annual Performance Plan 2023/2024:

The Annual Performance Plan consists of three programmes, Administration, Technical Support Services and Infrastructure Delivery Management Support, with a total of 22 output indicators that are linked to the MTFS outcomes.

-Programme one (Administration) consists of three sub-programmes. The programme ensures effective leadership, strategic management and administrative support to MISA. The programme has a current budget of R112 million, with majority of the budget being allocated to the compensation of employees.

-Programme two (Technical Support Services) consists of three sub-programmes. The purpose of the programme is to enhance the capabilities of municipalities for improved municipal infrastructure planning, delivery, operations and maintenance. The programme aims at reducing the non-revenue water (technical losses) 22 municipalities by an average of 5%. MISA is targeting 25 municipalities to achieve their infrastructure job opportunities. MISA is looking to assist municipalities with utilising at least 10% of their MIG budget for municipal infrastructure repairs and maintenance. Programme two has a 2023/2024 budget of R220 million, with a large portion allocated to the compensation of employees.

-Programme three (Infrastructure Delivery Management Support) aims to support municipalities on efficient delivery of municipal infrastructure programmes and projects and infrastructure procurement and financing. The programme is looking at targeting four plans towards spatial transformation in the Eastern Seaboard Region.

See attached for full presentation


Mr Badenhorst asked how MISA ensures that municipalities have adequately qualified staff and are capacitated to maintain infrastructure once MISA leaves.

Ms Shaikh asked if MISA has had challenges concerning capacity and the required personnel and budget to assist municipalities.

The Chairperson asked if MISA experiences resistance when assisting municipalities. Are there any reports on the state of infrastructure in the assisted municipalities?

With regards to assisting municipalities, how many people are employed and are women present in the engineering team?

Mr Badenhorst asked how MISA determines the priorities for interventions when deciding to assist municipalities.


Ms Kgomo stated that, regarding the capacitation of senior managers in municipalities, the expectation from municipalities is oftentimes that the MISA employees will do all the work and the municipal officers sit back – which is a problem that they have been facing. MISA is looking at establishing capacity programmes that increase the capacity pool in local municipalities by bringing in young graduates and training municipal officers to maintain the infrastructure.

She stated the MISA is faced with a capacity challenge as the technical resources are insufficient to meet the demand of the 257 municipalities across the country, with an estimated MISA technical officers to assist. MISA does need more engineers and planners, but the budget is also a constraint.

Changes in priority projects and the implementation of projects in MIG. Municipalities have budget constraints in implementing programmes.

MISA will provide written responses on the infrastructure analysis they have done in municipalities, as well as demographics and number of technical support staff.

Priorities identification: MISA identifies the weakest municipalities in reference to service delivery hotspots. It also identifies municipalities that do not spend their infrastructure grant, that face service delivery protests, and municipalities that are extremely under-resourced.

Follow-Up Discussion

Mr Smit raised concern to the Minister on the existence of MISA as an organisation that assists municipalities, stating that the appointed municipal officials should perform the work and capacity MISA provides to municipalities. One organisation cannot be expected to do the job of all district municipalities.

The Chairperson asked Mr Smit if the question directed to the Minister was fair.

Mr Smit felt the question is fair as there is budget allocated to the funding of MISA from the Department. Therefore, their responsibilities and tasks need to be questioned.

Minister Nkadimeng responded that section 1.5.4 of the Constitution allows provincial and national government entities to facilitate, assist and provide support to municipalities. This can be done by hiring external consultants or internally. However, the same budget will be spent as allocated to MISA. She also stated that some municipalities do not attract qualified engineers.

MISA will provide a report on the work they have engaged in over the past ten years and the impact made in supporting municipalities.

Dr Naidoo stated that data management and records management dealing with this will assist in ensuring financial viability of municipalities.

To ensure the accountability of councils, the Department published regulations that state that councils must declare gifts received over a certain value.

The code of conduct states that if a councillor votes for something that is against the law, that councillor can be removed by the MEC as it is a breach of the code of conduct.

Regarding the demarcation board, legislation guides its work and section 21 & 22 of the Act states how decisions are made within the board, and the Department does not interfere with it. The Department introduced the Demarcation Authority Bill, which will repeal Act 27 of 1998 and address the challenges evident in the existing legislation.

He stated that the Inter-governmental Monitoring Support Intervention Bill is at the last committee, the Governance and State Capacity and Institution Development Cabinet Committee. Once the Committee and Cabinet approve the Bill, it will be submitted to Parliament.

The Chairperson stated that section 48 of the Municipal Systems Act requires the Department to present the state of municipalities annually to the National Council of Provinces and the National Assembly. The Chairperson requested the Department to provide the report within three to six months to present before the Committee.

The meeting was adjourned.

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