Budget Review: briefing

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Cooperative Governance and Traditional Affairs

18 May 1998
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Meeting report

CONSTITUTIONAL AFFAIRS PORTFOLIO COMMITTEE
19 May 1998
BUDGET REVIEW: BRIEFING


Documents handed out:
Programmes for 1998/99 (Appendix 1)
Budget vote presentation: 19 May 1998 (Appendix 2)

SUMMARY
During this meeting senior civil servants from the Department of Constitutional Development had to report back to the Portfolio Committee of Constitutional Affairs about the budget, thus enabling the committee members to question the members of the Department.

The meeting was divided in three parts:
Constitutional Development Programme
Local Government Programme
Auxiliary and Associated Services

Briefly the lack of funding for constitutional education was seen as an issue as well as the incorrect funding of the Constitutional Review Committee by the executive and not Parliament. The Council for Traditional Leaders was receiving its first funding. Local government transition and reorganisation of its finances are currently of crucial importance.

The other item on the agenda was the Remuneration of Public Office Bearers Bill [B 16F-98]. There was no discussion on the amendments to the Bill.


DETAILED MINUTES
Constitutional Development Programme
Mr. Sizani, Deputy Director-General, gave a brief overview of the responsibilities of the Department. He then focused on the Council for Traditional Leaders. He stated that this year was the first year where funding was given to the Council and this is its first real budget. He also stated that the exact funding and responsibilities of the Council was a political decision, and these decisions cannot be taken by the Department itself.

Mr. Sizani spoke of Constitutional education, and how there were few resources to fund the program. The committee members wanted to know where such funding to enable the program to work was to be found. The importance of Parliament’s control over the Constitutional Review Committee was stressed. It is funded by the executive, but it should be funded by Parliament, and one must be careful so that the executive does not take control. The chairperson, Mr. Carrim, said that the committee agrees with the department on this issue. Prof. du Toit (ANC) urged for a discussion paper on constitutional education. He also mentioned the importance of the Constitutional Museum being integrated in such constitutional education. Melanie Verwoerd (ANC) mentioned the occurrence of lengthy court cases. She stressed the need for pressure on private legal firms to work within a reasonable timeframe.

The issue of election funding to political parties was raised. Mr. Titus from the Department, stated that this should be spelled out in the election bill, but the fact is that it is not to be found there. Mr. Titus had spoken to Home Affairs about this issue, and stated that this committee should also raise the issue with the Portfolio Committee of Home Affairs.

Peter Smith (IFP) asked whether the Department has worked out what responsibilities the national level has over the provincial level of government. Mr. Sizani stated that this issue has to be clarified, and it must be ensured that the Department plays the role it should be according to the Constitution regarding provinces. An committee member asked whether or not the boundaries of the provinces as they are now will continue to be in place, or if they will change. Mr. Sizani stated that there will be no change in the provincial boundaries in the foreseeable future.

The issue of traditional leaders was also discussed. Mr. Smith (IFP) wondered how well the Council works if the subcommittees only have time to meet twice a year. He also wondered about the timeframes for the Green and White Papers. The reply from the Department was that the council has little funding, but that its needs have been analysed. Wehle Khuzwayo from the Department stated that a full report from the Council will be ready in September of this year. And that deadlines for Green and White Papers are a political decision. Carrim stated that there is a need for the Committee to see progress and results soon, thus it must be possible to set deadlines in the near future (Sept. 98).

2. Local Government Programme
Dr. C. Olver, Deputy Director-General, stated that the Local Government branch of the department is trying to oversee the local government transition. Politically what has to happen is:
National legislation establishes a demarcation board, and criteria.
National legislation establishes criteria for categories and number of types.
Provincial legislation establishes types of municipalities for each province.

Administratively what needs to happen is:
Demarcation board determines municipal boundaries.
Provincial MEC establishes names, size of councils etc.
Electoral commissions administers local elections.

There will be a focus on developmental local government, and there will be major movements in reorganisation of local government finances.
Ms. Jackie Manchie from the Department gave a presentation on local government finances. The whole structure of these finances is designed to promote efficiency in municipal financial administration, and to allow for a development of a sustainable system. She stated that the state of municipalities is not good, and they will not be able to meet their creditors if they keep up their current level of expenditures. Ms. Manchie spoke also of "Project Viability". She spoke of intergovernmental transfers. These transfers are not to be used for salaries, but since it is an intergovernmental transfer, it is not possible to instruct the municipalities in the use of these transfers.

Mr. Robert Williams gave a presentation saying that through pilot projects, it has been shown that the backlogs from the apartheid era are larger than expected. Expectations do not correspond well with reality. The presentation showed clearly the underfunding in municipalities.

Mr. Ando Dankers gave a presentation on local government development and support. He outlined the local government issues that need more attention, what preparations need to be made for the elections, transformation issues, and the need for capacity building. He also mentioned that there will shortly be a website set up in order to heighten the level of local government information, and the accessibility of such information.

During the round of questions afterwards, it was mentioned the need for positive focus and a need to hear the success stories relating to "Project Viability", because the project has been given much negative coverage in the media.

Auxiliary and Associated Services
Mr. Seth Mogapi from the Local Government Education And Training Board, encouraged development in this area, and showed that there has been progress. There has been an heightening in the levels of awareness and appreciation of change, and there are more funds for the training (as opposed to administrative costs). Mr. Sedick Jappie also from Local Government Education And Training Board, argued for more capacity-building equipment to the municipalities.

Appendix 1: Programmes for 1998/99

PROGRAMMES FOR 1998/99 FINANCIAL YEAR

VOTE 9: CONSTITUTIONAL DEVELOPMENT

The budget of the Department of Constitutional Development for 1997/98 was R682,6 million. However, an additional appropriation of R473,5 million is covered in this year's Adjustments Estimate.

The amount rolled over from the 1996/97 financial year and included in the Adjustments Estimate contains, inter alia, expenditure on the municipal infrastructure programme of R444,1 million, the infrastructure investment framework of R1,4 million, project viability of R7,6 million, Presidential awards for community service of R11,3 million, the preparation of the White Paper on Local Government of R1,9 million and the training of rural councillors and municipal officials of R7 million.

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

· Administration

· Constitutional Development

· Local Government

· Auxiliary and Associated Services

ADMINISTRATION

The provision for this programme will increase in 1998/99 and will remain virtually static for the outer two years with provision only being made for inflation and the improvement of conditions of service. The anticipated actual expenditure for 1997/98 is R24,1 million which includes expenditure for the Volkstaat Council and Council for Traditional Leaders which are now provided for under the programme, Auxiliary and Associated Services.

CONSTITUTIONAL DEVELOPMENT

This programme is divided into three main subprogrammes, namely Constitutional Affairs, Co-operative 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 budgetary provision will be increased from R10,7 million in 1997/98. The anticipated expenditure in 1997198 is R11,9 million.

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 (PCDSs) 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 co-ordinated by two committees at both official and political level with representatives from the National as well as Provincial Governments.

LOCAL GOVERNMENT

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 1997/95 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 48 and 58 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 re-established 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 1 998 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. A total amount of R20 million will be spent on these projects during the 1997/98 financial year, while the total capital invested. by the private sector is anticipated to be over R1 billion.

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 plans, 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 Investment Framework

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 lDP's.

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. The programme is supported by official development aid and R 1 million has been committed to this programme. 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.

AUXILIARY AND ASSOCIATED SERVICES

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 and this fact is reflected in the increase budgeted for. 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.

1998 LEGISLATION PROGRAMME

Copies of the programme are attached.

A. SECTION 155(3) (DEMARCATION LEGISLATION)

Responsible persons: Advocate Gerrit Grove and Professor Christina Murray.

Bill to be discussed at MINMEC - 3 February 1998.

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

Return date for submissions - 13 March 1998.

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

Approval by Cabinet - 1 April 1998.

Submission to State Law Advisors - 3 April 1998.

B. SECTION 157, 158 AND 159 (ELECTION LEGISLATION)

Responsible persons: Advocate Paddy Roome.

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

First draft - 16 February 1998.

Meetings with legal team to commence - 18 February 1998.

Finalisation of Bill - 16 March 1998.

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

Return date for submissions - 20 April 1998.

Submission of Bill to the Cabinet Committee - 6 May 1998.

Approval by Cabinet - 13 May 1998.

Submission to State Law Advisors - 15 May 1998.

C. SECTION 155(2) AND 155(3)(c) LEGISLATION (POLITICAL SYSTEMS, TYPES, POWERS AND FUNCTIONS)

Responsible persons: Dr Petra Bouwer and Mr Anton Venter.

First draft - 16 February 1998.

Meetings with legal team to commence - 1 8 February 1998.

Finalisation of Bill - 16 March 1998.

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

Return date for submissions - 20 April 1998.

Submission of Bill to the Cabinet Committee - 6 May 1998.

Approval by Cabinet - 13 May 1998.

Submission to State Law Advisors - 15 May 1998

D. SECTION 153 READ WITH SECTION 155(7) (ADMINISTRATION LEGISLATION)

Responsible persons. Dr Petra Bouwer and Mr Andrew Gray.

First draft - 1 June 1998.

Meetings with legal team to commence - 3 June 1998.

 

Finalisation of Bill - 22 June 1998.

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

Return date for submissions - 27 July 1998.

Submission of Bill to the Cabinet Committee - 19 August 1998.

Approval by Cabinet - 26 August 1998.

Submission to State Law Advisors - 28 August 1998.

E. SCHEDULE 4 AND 5 MATTERS (MINIMUM STANDARDS LEGISLATION)

Responsible persons: Dr Petra Bouwer and Anton Venter.

Planning meeting between legal services and line functionaries - 16 July 1998.

First draft - 31 August 1998.

Finalisation of Bill - 30 September 1998.

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

Return date for submissions - 2 November 1998.

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

Approval by Cabinet - 2 December 1998

Submission to State Law Advisors - 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.

F. REMUNERATION OF PUBLIC OFFICE BEARERS BILL (SECTION 219)

Responsible persons. Mr Anton Venter.

Submission to State Law Advisors - 3 December 1997

Introduction into Parliament - 30 January 1998

G. TRANSFER OF STAFF TO MUNICIPALITIES BILL

Responsible persons: Messrs Fanie Louw and Anton Venter.

Submission to State Law Advisors - 27 November 1997.

Introduction into Parliament - 30 January 1998.

H. CONSTITUTION OF THE REPUBLIC OF SOUTH AFRICA AMENDMENT BILL (HUMAN RIGHTS COMMISSION/ALTERNATE MEMBERS OF JUDICIAL SERVICE COMMISSION AND SECTION 192)

Responsible persons: Dr Petra Bouwer and Mr Andrew Gray.

First draft for submission to Minister - 16 February 1998.

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

Approval by Cabinet - 4 March 1998.

Publication of the Bill and consultation with the various MECs for local government - 13 March 1998.

Return date for submissions - 14 April 1998.

Submission to State Law Advisors - 16 April 1998.

I. CONSTITUTION OF THE REPUBLIC OF SOUTH AFRICA SECOND AMENDMENT BILL (CROSS BORDER MUNICIPALITIES AND ASSIGNMENT OF LAWS)

Responsible persons. Dr Petra Bouwer and Mr Andrew Gray.

First draft for submission to Minister- 16 February 1998

 

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

Approval by Cabinet - 4 March 1998

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

Return date for submissions - 14 April 1998.

Submission to State Law Advisors - 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.

J. PENSION BENEFITS FOR COUNCILLORS OF LOCAL AUTHORITIES AMENDMENT BILL

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.

K DISASTER MANAGEMENT BILL

Responsible persons: Dr Petra Bouwer and Mr Peet Stopforth.

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

Draft Bill to be submitted to Minister - 3 August 1998.

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

L. DETERMINATION OF DELEGATES (NATIONAL COUNCIL OF PROVINCES) BILL

Responsible persons: Dr Petra Bouwer

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.

M. COMMISSION FOR THE PROMOTION AND PROTECTION OF THE RIGHTS OF CULTURAL, RELIGIOUS AND LINGUISTIC COMMUNITIES 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.

N. REPEAL OF THE LOCAL GOVERNMENT TRAINING ACT

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.


Appendix 2: Budget vote presentation: 19 May 1998

ANALYSIS OF VOTE NO. 9

The main programmes, which have been added to the department's vote, are the following:

· Local government administration in the amount of R951 million being the transfer of funds to those provinces which administer the so-called R293 towns.

· Local government transition support in the amount of R181 million being the transfer of funds to provinces to financially support municipalities, which are affected by the introduction of the new formula based distribution of the equitable share.

· Local government equitable share in the amount of R1 024 million for transfer directly to municipalities.

· Local Government Demarcation Board in the amount of R15 million.

· Contribution to the Represented Political Parties Fund in the amount of R53 million.

The basic programme structure has remained the same as for the previous financial year, namely

· Administration with a growth of 6,3%

· Constitutional Development with a growth of 29,0%

· Local Government with a growth of 73,6%

· Auxiliary Services with a growth of 83,7%

If one looks at the standard items it will be seen that the main year or year changes are:

Personnel expenditure, an increase of 7%

Administrative expenditure, an increase of 43%

Stores, an increase of 74%

Professional services, a decrease of 30%

Transfer payments, an increase of 75%

Council of Traditional Leaders: 97/98 and 98/99 Budget

COUNCIL OF TRADITIONAL LEADERS

1997/98

Budget - Actual

Personnel expenditure: 200 000 - 247

Administrative expenditure: 987 000 - 672 841

Stores and livestock : 73 000 - 8 229

Equipment: - - 840

Professional and special

Services:160 000 - 11 056

Transfer payments -

Miscellaneous: 3 000 -10 000

Total:1 423 000 - 703 214

1998/99

Personnel expenditure: 340 00

Administrative expenditure: 1 400 000

Stores and livestock : 400 000

Equipment: -

Professional and special

Services: 1 110 000

Transfer payments -

Miscellaneous: -

Total: 3 250 000

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