Briefing by Department and Ministry: Programme for the year

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Cooperative Governance and Traditional Affairs

10 February 1998
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Meeting report

10 february 1998

Vote 9: Constitutional Development (Appendix 1)
(this is an outline of proposed programmes and activities for 1998 by the Department)
1998 Legislation Programme (Appendix 2)

The new Parliamentary officer for Constitutional Development and Provincial Affairs is Derek Powell. A new office had opened that would serve a liaison and advice function between the department, ministry and parliament to ensure a smooth legislative process. It would deal with questions from parliament and work closely with the Director- General and the Minister.

In presentations by different sections of the Department, the following points were made:
- Business plan compilation by all directorates falling under the department is proposed.
- Planning for the year ahead will happen on 17 February.
- Target date for White Paper on the transition process of Local Government is 4 March.
- String of legislation to be implemented after 4 March:
Local government demarcation legislation: target date - 9 November
Electoral system legislation
Administration legislation
(about twelve bills to be debated in the coming year).
- Local government: A board is to be established for local government training. There is to be skills training for both the public and private sector. The training programme will be tendered out to institutions such as technicons, universities, NGOs etc.
- Finance: there will be a programme of intervention to provide monitoring and support with regard to the
finances of municipalities.
- Municipal infrastructure - the Department is undertaking further policy work on the financial framework for municipal infrastructure investment.
- Implementation of guidelines for development planning by municipalities in a number of pilot projects.
Disaster management - centre for disaster management to be established this year.

Mr R Sizani, the Deputy Director-General, discussed the implementation of Chapter 3 of the Constitution (Cooperative Government.). Constitutional Development is divided into 3 sub-programmes: Constitutional Affairs, Co-operative Governance and Provincial Affairs and Traditional Affairs. An outreach programme to educate the public on the Constitution is to be launched.

The Minister, Mr Valli Moosa, referred to the Local Government demarcation legislation which is to be discussed by the Portfolio Committee. The determination of outer boundaries will be made by the IEC and the boundaries of wards by the Department. Attention will also be focused on inter-governmental relations between the three spheres of government.


(Website viewers: Please note all references to budget have been edited out as this has not yet been approved)

The vote of the Department is broken down into the following programmes:

· Administration
Constitutional Development
· Local Government
· Auxiliary and Associated Services


This programme is divided into three main subprogrammes, namely Constitutional Affairs, Cooperative governance and Provincial Affairs and Traditional Affairs, which represent the line function activities and it is envisaged that these will remain for the period of the medium term expenditure framework.

The following policy initiatives were launched during 1997/98 and will be continued during this budgetary cycle.

Green Paper and White Paper on Traditional Leadership

The need for a comprehensive policy document on traditional leadership and institutions was highlighted on various occasions during 1997/98. Such a document will urgently be drafted to conceptualise and crystallise the position, function, role and responsibilities of these leaders and institutions within the present constitutional dispensation.

Remuneration of Traditional leaders (Kings, Paramount Chiefs and Chiefs) from national level

During 1997/98 a policy decision was made to remunerate traditional leaders from the national government. Fundamental preparations and research in this regard was conducted during 1997/98. In 1998/1999 effect will be given to the goal of parity and uniformity regarding the remuneration of traditional leaders by transferring the remuneration function, on an agency basis, from the provinces to the national government. At this stage the appropriation of the required funds will remain on provincial budgets.

Capacity Building of Traditional Leaders and Traditional Institutions

The need for capacity building for traditional leaders and institutions is a sine qua non for their accommodation in a democratic dispensation. Non-financial assistance will be given to the respective provincial administrations in their programmes to give effect to the policy objective to build the capacity and participation of traditional leaders and their institutions in aspects such as community empowerment, development, the administration of land and participation in local government.

Dispute Resolution

Re-evaluation, in co-operation with the provinces, regarding succession criteria as well as recognition of new traditional leadership positions and communities to ensure uniformity was identified and will be given content via research, co-operation with the relevant provinces and communities in the forthcoming years.

Constitutional Education

With the adoption of the 1996 Constitution, South Africa moved from a parliamentary form of state to a fully-fledged constitutional state. This move to a form of state based on the supremacy of the Constitution has fundamental implications for the daily existence of South African citizens. There is consequently a need for all South Africans to be educated and informed about these changes, hence an outreach programme is to be launched and copies of the Constitution will be printed and distributed.

Constitutional Implementation, Research and Advice

The overall objective of the implementation process is to ensure that the Constitution and its goals are successfully given effect to by the various role players through proper management and planning and by means of effective co-ordination, facilitation and integration.

Facilitation and Co-ordination of Provincial Development Planning

The Department is inter alia responsible for evaluating the status, and rendering advice on the facilitation and co-ordination, of provincial development planning. Provincial Growth and Development Strategies (PGDSs) were analysed and evaluated, and the Working Group compiled a report on investment planning which was submitted to the Intergovernmental Forum on 17 November 1997. A beginning was made to study and evaluate development strategies, focusing not only on financial, physical and spatial aspects but also taking into account needs in respect of, and effects on, social and administrative aspects.

Border Disputes

During the past financial year the Department has dealt with several disputes involving different provinces over the changes/amendment of provincial boundaries, such as Bushbuckridge, Marble Hall/Groblersdal, Balfour and Umzimkulu. An annual budget provision has been retained to cover the costs of such dispute settlement.

Intergovernmental Relations

A discussion document on co-operative government setting out the main strategic issues affecting all three spheres of government is to be released early in 1998 and will serve as the base document for consultations in the process to prepare a Green Paper by the end of 1998 and a White Paper in 1999. The process is being coordinated by two committees at both official and political level with representatives from the National as well as Provincial Governments.


Local government in South Africa has been given a distinctive status and role in building democracy and promoting socio-economic development by the Constitution, and the key role of this programme is to give effect to this new vision for local government. This is translated into the following key programmes:

overseeing the completion of the local government transition as established by the Local Government Transition Act, and in particular finalising policy for the final phase of the transition through the White Paper on Local Government;
drafting and administering legislation in order to give effect to key constitutional provisions, e.g. the Organised Local Government Act;
co-ordination of training and capacity building programmes for local government;
monitoring financial problems of municipalities and co-ordinating a national programme of intervention in order to stabilise municipal finances; co-ordinating the Masakhane campaign;
developing policy regarding ways to improve municipal revenues, including tariff structuring, credit control, property taxation, rationalising intergovernmental grants, and new revenue sources;
improving access for all South Africans to essential municipal services through a co-ordinated programme of public and private investment in municipal infrastructure - this includes a major programme of capital investment and grants managed in partnership with provinces and municipalities, and innovative forms of public/private partnerships to leverage private investment;
programmes to promote integrated development planning and local economic development by municipalities;
co-ordination of disaster management policies and programmes; and co-ordination of municipal data collection and reporting.

The following are the main policy initiatives and functions undertaken in 1997/98 and to be continued through this budgetary cycle.

Local Government transition

The Constitution of South Africa sets a framework in terms of which a new policy must be formulated for local government and such policy had to be developed with the full participation of key role-players and the public at large. A three-phase approach was embarked upon under the guidance of a White Paper Political Committee and a Working Committee.

The first phase of consultations resulted in a Discussion Document published in April 1997, containing the initial strategic questions to be addressed in the White Paper. The second phase, which consisted of extensive research processes (both primary and secondary research), provincial and local workshops and other consultation mechanisms, resulted in the Green Paper on Local government, which was released for public comment in October 1997.

The third phase, consisting of Portfolio Committee hearings, public submissions and consultative conferences, resulted in the White Paper on Local Government, which addresses the following matters:

the current system of local government, including the existing settlement patterns and trends;
the implications of local government as a sphere of government in its own right, the co-ordination of national departmental programmes which impact on local government, and the role of organised local government and horizontal relations between municipalities;
working with local communities on sustainable strategies to meet their needs, and approaches which can assist Municipalities to become more developmental;
institutional systems, including the different categories of local government, the relationship between traditional leadership and local government, and the establishment of a Demarcation Board;
the political structures and electoral systems of future local government;
organisational transformation, service delivery, capacity building and human resource development and the labour relations system;
a framework for a new municipal financial system; and the transformation process and programme.

Key legislation which will follow is the Demarcation Bill, the Local Government Elections Bill and legislation dealing with political systems, powers and functions, local government administration, and regulation of Schedule 4B and 5B matters. The establishment of the Demarcation Board, and supporting the process of redemarcation, will be major areas of work during 1998, and serve as key mechanisms for implementing the White Paper recommendations.

Other legislation (1997/98)

The organised Local Government Act, 1997 was promulgated on 12 November 1997 and provides, for the first time, that local government can participate in the law making process at national level through the NCOP and in the process of determining the equitable share of revenues through the FFC.

Regulations concerning by-elections and voters' rolls were issued in terms of the Local Government Transition Act, 1993 and municipal demarcation boards were reestablished in the provinces and regulations defining their operation issued. The Transfer of staff to Municipalities Bill has been finalised after extensive consultation within government, and tabled to parliament for consideration.

Local Government training

The current system of local government training is not effective and a new system has to be developed to capacitate municipal administration.

Training programmes need to be more co-ordinated and efficient, and responsive to the new training needs of local government. As an alternative to the current arrangements the following measures are being considered for early implementation:

Tendering out training in order to achieve competitiveness amongst providers;
Appointment of a smaller interim Training Board with skilled members; and
Shifting the focus of training to key national priorities.

The long term training system will be in line with the skills Development Bill to be tabled during 1998, and transitional arrangements for local government will be included in this Bill.

A major capacity building programme for local government will be launched during 1998 in collaboration with provincial and local government, and a transitional fund will be established to support the transformation process.

Municipal International Relations

The Policy Framework on Municipal International Relations is expected to be in force from 1 April 1998. It is also foreseen that a Local Government Desk with SADC will be established in 1998.

Project Viability

Project Viability was established by a joint resolution of local government and finance MECs and Ministers in order to deal with the financial problems faced by municipalities. It consists of the following elements:

a national monitoring programme: Questionnaires are sent to every municipality on a quarterly basis. Replies to these questionnaires have established that approximately 260 municipalities seem to be experiencing financial difficulties (September 1997);
management audits: Provincial Task Teams have been formed in all the provinces to perform management audits in those municipalities seemingly in financial difficulties. The target set for 1997 was to perform 100 audits and to date a total of 202 audits have been completed; and
management support programmes: It was estimated that 40 municipalities will need intervention in terms of Section 10 G(2) (m) of the LGTA. The completed management audits revealed that approximately 91 municipalities need help in the form of financial management support and mentoring.

The expected expenditure on this project in 1997/98 is R5,3 million. The emphasis during 1998 will be to provide a countrywide programme of intervention and support concentrating on management support and continual monitoring. In addition legislation on monitoring, oversight and intervention in municipalities will be prepared.

Masakhane Campaign

In the past year the Masakhane Campaign made significant strides on several fronts. These advances were made within the context of a revitalised campaign predicated on mass mobilisation, capacity building, showcasing delivery, forging partnerships and rewarding communities and councils that are implementing changes in their areas.

In the new budget cycle the challenge is to consolidate and advance the campaign. A programme of action resting on four pillars has been developed -good local governance, facilitating the provision of services, stimulating local economic development and strengthening feelings of a common citizenship.

The programme will start with a national summit of women on Masakhane, a youth
mobilisation programme and the staging of the national events on the awards. The campaign will include sectoral events to involve Departments and stakeholders, and will reach a climax with the four week in September 1998.

Municipal Revenues and Financial Management

If local government is to perform the functions assigned to it and reduce its reliance on intergovernmental transfers, it needs access to adequate sources of revenue. There are already in existence a wide variety of revenue options available to local government, but local government has to put in place mechanisms to fully exploit these revenue sources.

During 1998 the Department will establish the mechanisms and support systems for administering the equitable share of revenue for local government, including funding for SALGA.

The Department has embarked on a policy process which will address the issues of property taxation, tariff structuring, the pricing of municipal services and reform of RSC/JSB levies.

Guidelines have been developed on credit control and mechanisms to deal with the indigent and these will be monitored as part of Project Viability.

The Department commissioned a study into municipal accounting and financial reporting in 1997 in order to recommend areas of reform that will result in a transparent and uniform system of municipal accounting and financial reporting. The Department of Finance has been charged with testing these recommendations against the South African context, further refine the recommendations, and establish an implementation process.

The Joint Committee on Municipal Finance (JCMF), representative of all relevant role-players, was established during 1997 to discuss and make recommendations regarding local government financial matters. The purpose of the JCMF is to serve as a discussion forum where the local government sphere, the provincial government, the national government and relevant professional bodies can consider financial matters in the local government context and formulate recommendations in this regard.

Public/Private Partnerships

The Department has sought to extend the delivery of basic services by finding ways of leveraging private sector finance for infrastructure projects. One of the ways to do this has been through setting up business partnerships between municipalities and private companies in order to finance, extend, operate and/or manage infrastructure services. A total of 18 pilot projects have been established in urban and rural areas country-wide, including water, sanitation, refuse collection and transport projects. (edit)

In addition a capacity building unit, known as the Municipal Infrastructure Investment Unit, has been set up under an advisory board. The MIIU will advise municipalities on innovative ways to maximise private sector funding of projects, and it will provide grants to municipalities to enable them to hire professional advisors to put together financing deals.

On the basis of the above experiences with PPPs the Department will finalise a clear regulatory framework for private sector participation in municipal service delivery. The framework will address issues such as tendering and procurement by municipalities, monitoring compliance with contracts, and resolving disputes relating to PPPS.

Municipal Infrastructure Programme

The Municipal Infrastructure Programme (MIP) was launched in the 1994/1995 financial year. The specific purpose was to provide some of the basic short-term needs (services and sanitation) to communities as outlined in the Reconstruction and Development Programme (RDP). In the 1995/96 financial year the extension of this programme was approved known as the eMIP programme. Amounts of R850 million for the MIP and R650 million for the eMIP were originally made available to the Department. The programmes reached their peak during the 1997/98 financial year and an amount of R816 million was spent to finalise the MIP and eMIP programmes during this financial year which provided both internal and bulk infrastructure to communities.

There were in total 1058 projects supported by the programmes, including water, sanitation, roads, refuse, electricity and community health care facilities.

A total of 242 520 people have been employed on projects through the programme.
Accredited training was provided to 78 870 people and non-accredited training to 270 982 people. A total number of 1569 Small, Medium and Micro Enterprises (SMME's) were utilised over the duration of the programme.

New or rehabilitated infrastructure services were provided to approximately 12 million beneficiaries.

Based on the principles of the Municipal Infrastructure Investment Framework Programme, the Consolidated Municipal Infrastructure Programme (CMIP) has been introduced with the aim of consolidating the municipal infrastructure programmes of Government into one coherent process. This programme is designed to further the aims of the RDP and is intended to:

provide internal bulk and connector infrastructure in support of the housing programme to needy South Africans in a way that enhances the integration of previously divided areas. This is applicable to 65% new projects, 25% rehabilitation/upgrading projects, and 10% special cases; and

enhance the developmental impact of the delivery process by focusing on the transfer of skills and promotion of Small, Medium, and Micro Enterprises (SMMEs), using labour intensive construction processes and maximising job creation opportunities.

During the 1997/98 financial year a lot of attention was paid to introducing the CMIP programme to all the municipalities and other stakeholders, the prioritisation of business plans1 setting up a programme management system and starting a number of pilot projects. Implementation of projects will commence in earnest during the 1998/99 financial year.

Municipal Infrastructure In vestment Frame work

The Department has also commissioned the DBSA to undertake further policy work on the financial framework for municipal infrastructure investment. The objectives of the study are inter alia to:

provide a basis to address the most pressing short term financial and fiscal issues facing local government;
refine the basic policy and to design institutional and financial mechanisms for a reformed local government fiscal and financial system which accord with domestic realities and which are able to ensure delivery envisaged by the Reconstruction and Development Programme; and.
develop a coherent and generally accepted approach to municipal infrastructure investment, investment assessment and business planning practices to support municipal infrastructure investment.
This work will also be concluded by the end of the 1997/98 financial year.

To ensure sustainable service delivery the Department commissioned a capacity audit that will ultimately lead to a national capacity building programme on municipal infrastructure.

Integrated Development Planning and Local Economic Development

Integrated development planning by municipalities is key to the realisation of their developmental potential, and linking poverty alleviation to local economic development. The Department has worked with municipalities to produce policy and guidelines on these matters, and is implementing these in a number of pilot projects across the country.

The Decentralised Development Planning Programme is aimed at supporting local authorities to plan, and set poverty eradication targets through an Integrated Development Plan. This programme will benefit up to 30 municipalities over a 3 year period. A poverty assessment will form an integral part of a municipality's plan.

Additional activities to support integrated development planning are:

finalisation of the Planning Support Kit developed in conjunction with CSIR;
review of the legislation for integrated development planning.
Establishment of a Training and Capacity Development Module for implementation of IDPs.

A specific programme focusing on local economic development has been established. It focuses on supporting 10 local authorities in designing specific poverty alleviation strategies by using the local economy as a starting point. (edit). A full scale implementation of this programme will benefit up to 20 local councils in South Africa.

In addition a national LED practitioners conference will be held, and a training programme on LED launched.

Disaster Management

Over the past few years disaster management in South Africa has undergone a shift from the traditional re-active approach towards a pro-active and preventive approach. During 1997 Cabinet decided that:

A Green Paper on Disaster Management should be compiled before the end of 1997 which would culminate in a White Paper and relevant legislation;
An Inter-Ministerial Committee for Disaster Management be established; and
A National Disaster Management Centre should be established to co-ordinate all disaster-related activities.

The Green Paper on Disaster Management was approved by Cabinet on 3 December 1997 and will be distributed early in 1998. It is anticipated that the subsequent White Paper and legislation will be finalised during 1998, and that a Disaster Management Centre will be established.


The main sub-programmes are the following:

Training Fund for Local Government Affairs

In terms of the Local Government Training Act, 1995, the Department makes an annual transfer to a fund established in terms of the Act. In 1997/98 the transfer was R8 million. These funds together with the levies collected from municipalities fund the operation of a Board and fifteen local government training centres.

Volkstaat Council

An amount will be provided in 1998/99 and no further provision is made as it is anticipated that the Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities will be functional by that stage.

Council for Traditional Leaders

Although the Council was launched on 18 April 1997 it will begin to function effectively during the 1998/99 budget year. Support staff to the Council will be appointed in the 1998/1999 financial year (edit). The Council will research and advise on all critical issues relating to traditional leadership and institutions and will also give guidance and directives to the various provincial Houses of Traditional Leaders.

Vulnerable Indigenous Communities

Preliminary research pertaining to the constitutional accommodation of these communities (e.g. Griqua, Nama and Khoi) was started during 1997/98 and will be fundamentally investigated during the forthcoming budgetary year.

Contribution to the Represented Political Parties Fund

The fund has been established in terms of legislation promulgated in 1997 and provision has been made to transfer the required amounts from 1998/1999. Draft regulations have been prepared for presentation to Parliament.

Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities

Regarding the activities relating to constitutional implementation specific focus will be placed on research regarding the establishment of the Commission as provided for in section 185 of the Constitution. The establishment of this Commission will have financial implications which will be determined once a political decision on when to establish the Commission has been taken.


Copies of the programme are attached.


Responsible persons: Advocate Gerrit Grove' and Professor Christina Murray.

Time frame: Bill to be discussed at MINMEC - 3 February 1998.

Publication of the Bill and - 13 February 1998.
consultation with the various
MEC's for local government

Return date for submissions - 13 March 1998.

Submission of Bill to the Cabinet - 25 March 1998.

Approval by Cabinet - 1 April 1998.

Submission to State Law - 3 April 1998.


Responsible persons: Advocate Paddy Roome.

NOTE: Advocate Roome's term of appointment expires at the end of March 1998.

Time frame: First draft - 16 February 1998.

Meetings with legal team to - l8 Februaryl998.

Finalisation of Bill - 16 March 1998.

Publication of the Bill and - 20 March 1998.
consultation with the various
MEC's for local government

Return date for submissions - 20 April 1998.

Submission of Bill to the Cabinet - 6 May1998.

Approval by Cabinet - 13 May1998.

Submission to State Law - 15 May1998.


Responsible persons: Dr Petra Bouwer and Mr Anton Venter.

Time frame: First draft - 16 February 1998.

Meetings with legal team to - 18 February 1998.

Finalisation of Bill - 16 March 1998.

Publication of the Bill and - 20 March 1998.
consultation with the various
MEC's for local government

Return date for submissions - 20 April 1998.

Submission of Bill to the Cabinet - 6 May1998.

Approval by Cabinet - 13 May1998.

Submission to State Law Advisors - 15 May1998.


Responsible persons: Dr Petra Bouwer and Mr Andrew Gray.

Time frame. First draft - 1 June1998.

Meetings with legal team - 3 June1998.
to commence

Finalisation of Bill - 22 June1998.

Publication of the Bill and - 26 June 1998.
consultation with the various
MEC's for local government

Return date for submissions - 27 July 1998.

Submission of Bill to the Cabinet - 19 August 1998.

Approval by Cabinet - 26 August1998.

Submission to State Law - 28 August 1998.


Responsible persons: Dr Petra Bouwer and Anton Venter.

Time frame: Planning meeting between - 16 July 1998.
legal services and line

First draft - 31 August 1998.

Finalisation of Bill - 30 September 1998.

Publication of the Bill and - 2 October 1998.
consultation with the various
MEC's for local government

Return date for submissions - 2 November 1998.

Submission of Bill to the - 25 November 1998.
Cabinet Committee

Approval by Cabinet - 2 December 1998.

Submission to State Law - 4 December 1998.

NOTE: Indications are that the DFID funds of R280, 000 will not be sufficient to finance the legal team assisting the Department with the drafting of local government legislation.


Responsible persons: Mr Anton Venter.

Time frame: Submission to State Law - 3 December 1997.

Introduction into Parliament - 30 January 1998.


Responsible persons: Messrs Fanie Louw and Anton Venter.

Time frame: Submission to State Law - 27 November 1997.

Introduction into Parliament - 30 January1998.


Responsible persons: Dr Petra Bouwer and Mr Andrew Gray.

Time frame: First draft for submission to - 16 February 1998.

Submission of Bill to the Cabinet - 25 February 1998.

Approval by Cabinet - 4 March 1998.

Publication of the Bill and - 13 March1998.
consultation with the various
MEC's for local government

Return date for submissions - 14 April1998.

Submission to State Law - 16 April 1998.


Responsible persons: Dr Petra Bouwer and Mr Andrew Gray.

Time frame: First draft for submission to - . 16 February 1998

Submission of Bill to the Cabinet - 25 February 1998.

Approval by Cabinet - 4 March 1998.

Publication of the Bill and - 13 March 1998
consultation with the various
MEC's for local government

Return date for submissions - 14 April1998.

Submission to State Law - 16 April 1998.

NOTE: The finalisation of this Bill will depend on the outcome of the two legal opinions which are being awaited from the State Law Advisors.



Responsible persons: Messrs Fanie Louw and Anton Venter.

A court case is presently pending which directly relates to the proposed amendment. The Durban Metropolitan Substructure and the Transvaal Municipal Pension Fund are presently negotiating a settlement on the basis that the Act be amended.

Once the aforementioned parties reach an agreement, the Bill will be submitted to the Minister for his concurrence.

The Bill has already been drafted.


Responsible persons: Dr Petra Bouwer and Mr Peet Stopforth.

Time frame: Finalisation of the White Paper - 22 June 1998.
on Disaster Management

Draft Bill to be submitted to - 3 August1998.

Publication of Bill - 14 August 1998.

Return date for submissions - 14 September 1998.

Cabinet Committee - 14 October 1998.

Approval by Cabinet - 21 October 1998

Submission to State Law Advisors - 23 October 1998


Responsible persons: Dr Petra Bouwer.

Time frame: Bill to be submitted to the Minister. - 13 February 1998

NOTE: Other time frames in respect of this Bill will depend on a decision by the Minister as to whether he approves the draft Bill.


Responsible persons: Dr Petra Bouwer and Mr Johan Beukman.

NOTE: The finalisation of this Bill depends on a political decision regarding the urgency thereof as well as the availability of funds.


Responsible persons: Dr Petra Bouwer and Mr Robert Willemse.

NOTE: Proposals for the repeal of this Act and the inclusion of transitional provisions in the Skills Development Bill have been approved by the Minister and submitted to the Department of Labour.


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