REPORT OF THE SELECT COMMITTEE ON COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS, ON THE OVERSIGHT VISIT TO IMBABAZANE LOCAL MUNICIPALITY, DATED 11 NOVEMBER 2014

1.         Background

 

1.1        On the 23rd January 2013, the Provincial Executive Council resolved to intervene at Imbabazane Local Municipality in terms of section 139(1)(b) of the Constitution, and assumed the functions specified in terms of section 51 of the Local Government: Municipality System Act (Act 32 of 2000). The Executive Council further resolved on the 06th March 2013, to extend the scope of the intervention by assuming the executive functions of the council in terms of section 54A and 56 of the Municipal Systems Act.   Based on the current challenges, which had the potential of causing instability within council, then on the 10th September 2014, the Executive Council resolved to extend the intervention in at the Municipality from 30 September 2014 to 31 March 2015.

 

1.2        The KwaZulu-Natal MEC for Cooperative Governance and Traditional Affairs, on the 19th September 2014, tabled to the Office of the Chairperson of the National Council of Provinces (NCOP), a notice of the request for extension of intervention in terms of section 139(1)(b) of the Constitution at Imbabazane Local Municipality. Subsequent to the tabling, the Chairperson of the NCOP referred the notice of intervention in terms of Rule 101 to the Select Committee on Cooperative Governance and Traditional Affairs, for consideration and report.

 

1.3        On the 22nd October 2014, a multiparty delegation of the Committee conducted an oversight visit to the Imbabazane Local Municipality.         

 

2.         Objective of the Oversight Visit

 

2.1        The objective of conducting the oversight visit was to consult and interact with the internal and external stakeholders of the Municipality, in order to solicit their opinion with regard to the request for the extension of intervention in the Municipality in terms of section 139(1)(b) of the Constitution, and also to report back to the NCOP in terms of Rule 101.      

 

 

3.         Overview of the Oversight Visit to Imbabazane Local Municipality 

 

3.1       The delegation of the Select Committee on Cooperative Governance and Traditional Affairs had interaction and consultative meeting with the internal and external stakeholders of the Municipality, during 22nd October 2014. The stakeholders the delegation interacted with included the Mayor, Speaker, Chief Whip, the senior official of the Provincial Department of Cooperative Governance and Traditional Affairs, the Ministerial Representative and representatives of the Organised Labour and Ward Committee members and members of municipal political parties.

 

4.         Presentation on the Request of Extension of Intervention in Imbabazane Local Municipality  

 

4.1       The Department of Cooperative Governance and Traditional Affairs briefed the members of the Select Committee on the background of the constitutional intervention and the resolution of the KwaZulu-Natal Provincial Executive council, dated 10 September 2014, to extend the intervention in terms of section 139(1)(b) of the Constitution.

 

4.2       The Departmental presentation focused on the background, reason for the intervention and the terms of reference of the Ministerial Representative in Imbabazane Local Municipality. 

 

5.       Context           

 

5.1        On the 23rd January 2013, the Provincial Executive Council resolved to intervene at Imbabazane Local Municipality in terms of section 139(1)(b) of the Constitution, and assumed the functions specified in terms of section 51 of the Local Government: Municipality System Act (Act 32 of 2000). The Executive Council further resolved on the 06th March 2013, to extend the scope of the intervention by assuming the executive functions of the council in terms of section 54A and 56 of the Municipal Systems Act.  

 

5.2        Based on the current challenges, which had the potential of causing instability within council, then on the 10th September 2014, the Executive Council resolved to extend the intervention in at the Municipality from 30 September 2014 to 31 March 2015.

 

6.         Reasons for the Intervention 

 

6.1        Since the election of the new council, there were numerous challenges at the Municipality, particularly with councillors staging walk-outs at council meetings based on various disagreements. The municipal council had also failed to have a meeting for at least two consecutive quarters. Disagreements amongst councillors and political indifferences had caused critical issues to be neglected such as the annual report 2010/11.

 

6.2        Following the resistance to deal with the Municipal Manager’s contract, an unlawful meeting was also held on the 20th June 2012 by certain councillors at which the Mayor and Speaker were purportedly removed from office and new office bearers were elected.

 

6.3        This meeting also purported to appoint the Municipal Manager as well. The MEC instituted High Court litigation to restore the state of legality. Judgment was delivered granting the MEC relief, declaring the contract of the former Municipal Manager void and all resolutions passed by the council from the 20th June 2012 to the date of the order null and invalid. The delay in respect of the High Court matter resulted in the perpetuation of unlawfulness and instability, which was contrary to the constitutional imperatives of a democratic and accountable government.

 

6.4       Subsequent to the meeting held on the 20th June 2012, the Department was informed that the NFP and IFP led council were refusing or neglecting to notify other councillors, particularly the ANC, of council meetings that were due to be held, being of the view that their numbers were sufficient to constitute a quorum. That only changed when the ANC councillors were notified of meetings in August 2012. It was clear that service delivery and functionality were being seriously compromised, as a result of the instability and dysfunctionality of the council. The unlawful meetings were also indicative of the failure of council to fulfill its executive obligation to govern lawfully.

 

 

7.         Terms of Reference of the Ministerial Representative at Imbabazane Municipality   

 

7.1        The terms of reference for the Ministerial Representative were as follows:

 

·                To ensure that the municipal council meets regularly and in line with section 18(2) of the Local Government: Structures Act (Act 117 of 1998), or as often as was necessary to conduct council business, in keeping with council’s Standing Rules and Orders and all applicable legislation, particularly, the Local Government: Municipal Structures Act.

 

·                Revise council’s Standing Rules and Orders and Roles and Responsibilities of office bearers, the Municipal Manager and any other senior official, to ensure good governance and legality at all council meetings.

 

·                Monitor and assess the adherence to policy, principles and frameworks applicable to council and the administration.

 

·                Address challenges in respect of adherence to such policy, principles and frameworks by reviewing, amending and ensuring adoption and implementation thereof.

 

·                Ratify all decisions of the municipal council and its committees, prior to implementation; ratify all decisions taken by the Municipal Manager and managers directly accountable to the Municipal Manager in terms of the delegated or original authority.

·                Review any decision of the municipal council, its committees and that of the Municipal Manager or managers directly accountable to the municipal manager for the purposes of ensuring legality.

 

·                Devise a turn-around strategy for the Municipality including a strategy to promote good governance.

 

·                Ensure implementation of council resolutions by the administration, a system to control and approve all expenditure, all governance systems and procedures including appropriate councillor oversight mechanisms.

 

·                Ensure implementation of financial systems, policies and procedures, review the organizational structure of the Municipality, and undertake all steps of section 54A and section 56 of the Systems Act.

 

8.         Presentation on Municipal Recovery Plan of Imbabazane Local Municipality

                 

8.1       The Ministerial Representative briefed the delegation of the Committee on the municipal recovery plan. The presentation focused on the five key performance areas of the five-year Local Government Strategic Agenda, namely, institutional development and municipal transformation; financial viability and management; good governance and public participation, basic service delivery and local economic development.          

 

9.         Financial Viability and Management     

 

9.1       The Municipality has reviewed and implemented credit and debt management policy adopted by the council in May 2014. Bills of the municipality are sent to consumers on a monthly basis, and the Revenue Unit has managed to increase the collection rate. The deviation register and report have been tabled periodically to the council for condonation.

            The municipal procurement plan has been developed, and all supply chain management decisions has been reviewed. Section 71 reports have been tabled as required by the Municipal Finance Management Act (Act 56 of 2003), and all creditors were paid within 30 days. Lastly, the audit committee meetings have been convened periodically and all expenditure were properly authorized and monitored within the budget allocation.      

 

10.      Good Governance and Public Participation  

 

10.1      The Municipality has developed a system of reporting for portfolio committees, municipal public accounts committees, executive council and the council. It has also developed and reviewed a system of delegation in terms of section 59 and framework of roles and responsibilities in term of section 53 of the MFMA. The Ministerial Representative has also considered all decisions of the management committee, portfolio committees and the council for ratification.

 

11.      Institutional Development and Municipal Transformation  

 

11.1      The Municipality has appointed the municipal management with effect from 1st February 2014. It has also reviewed appointments of managers directly accountable to the Municipal Manager and appointed General Manager of Corporate Services with effect from 1st September 2014. Reviewed all Human Resource appointments and finalised placement of employees into new municipal structure or organogram. Lastly, it has finalised the appointment of acting Chief Finance Officer and acting General Manager responsible for Technical and Infrastructure Development.  

 

12.      Local Economic Development  

 

12.1      The Municipality has reviewed the Integrated Development Plan (IDP) and aligned the key performance indicators to organisational performance scorecard. In addition, it has developed and implemented the reporting mechanisms of the performance information. 

 

13.     Opinion of the Member of Democratic Alliance (Party Whip)

 

13.1      The member of Democratic Alliance raised concerns with regard to the manner in which the intervention was issued. Some of the major concerns raised related to the non- implementation of projects during the period of intervention and the municipal requirement for the current councillors to repay monies committed by the previous councillors. 

 

14.     Opinion of the Member Inkatha Freedom Party (Party Whip)

 

14.1      The Inkatha Freedom Party member raised concerns with regard to the justification of the intervention and extension. The major concerns raised related to the manner in which section 56 managers have been recruited and appointed, municipal requirement for current  councillors to repay debts committed by previous Councillors and the dismissal of municipal employees.    

 

15.        Opinion of the Member of National Freedom Party (Party Whip)

 

15.1      The member of the National Freedom Party raised concerns with regard to the intervention. The major concerns raised related to the report of the Ministerial Representative on projects implemented by the Councillors and implementation of decisions by the Ministerial Representative.

 

16.      Opinion of the Member of African National Congress (Party Whip)    

 

16.1      The African National Congress member expressed support and welcomed the progress made in the Municipality in terms of section 139(1)(b) of the Constitution. The major progress reported included improvement of political relations among councillors, reconciliation during the strategic planning workshop held in February 2014 and the restoration of political stability and governance.   

 

 

17.      Opinion of the Representative of South African Local Government Association        

 

17.1      The senior official of the South African Local Government Association tabled on behalf of office bearers, support of the request to extend the intervention. The Association welcomed the progress made by the Ministerial Representative, more especially with regard to governance, municipal administrative and political stability and the processes around restructuring and municipal amalgamation.  

  

18.      Opinion of Organised Labour    

 

18.1      The representative of the organised labour submitted a joint opinion of the IMATU and SAMWU supporting and welcoming the progress made since the intervention began. The progress welcomed by the organised labour included the development of human resource policies; filling of critical municipal positions and the alignment of key performance indicators of the integrated development plan with service delivery budget implementation plan.           

 

19.      Committee General Observations and Opinion

 

19.1      The Committee has observed and noted that the KwaZulu-Natal Provincial Department of Cooperative Governance and Traditional Affairs has failed to comply with the resolution passed by the NCOP during the Fourth-Parliament, which required the Department to table quarterly progress reports in respect of the intervention issued in terms of section 139(1)(b) of the Constitution in Imbabazane Local Municipality.   

 

19.2      The Committee has also noted that on 20 March 2013, the Provincial Executive Council resolved to intervene at Imbabazane Local Municipality in terms of section 139(1)(b) of the Constitution and assumed the functions specified in terms of section 51, 54A and 56 of the System Act.

 

19.3      On the 04th December 2013, the Provincial Executive Council noted progress and the challenges which remained. On that basis, it resolved to extend the intervention in terms of section 139(1)(b) of the Constitution at the Municipality, until 30th September 2014. The intervention was further extended on 10th September 2014 until 31st March 2015 due to outstanding key intervention priority areas.   

 

19.4      The Committee has observed and noted that the intervention priority areas which becomes justification for the request of the extension of intervention until March 2015 related to the strategic objectives of local government namely, institutional development and municipal transformation, financial viability, good governance and public participation, local economic development.

        

19.5      Despite the progress made in respect of financial viability, good governance and public participation, the Committee has further observed crossed-cutting challenges facing the Municipality within the period of the extension of intervention.             

 

19.6      These cross-cutting challenges include appointment of the general staff members; ward committee support; community safety survey; scamming of service providers; concerns raised by the Auditor-General on the performance of the Municipality; availability of traditional leaders in council meetings; observations of rules and orders; poor planning and forecasting by the Municipality; looming tension between the political and administrative structures and the institutional capacity due to challenges faced by the Municipality on filling of critical positions.           

 

19.7      Furthermore, the Committee has observed and noted the action plan developed by the Municipality in order to deal effectively and sufficiently with general challenges and outstanding intervention challenges.    

 

19.8      The Committee therefore, welcomed the municipal action plan focus on aligning the strategic interventions to performance agreements and hold the leadership and local government practitioners accountable, for implementing the strategic interventions 

 

20.      Committee Recommendations to the National Council of Provinces

 

20.1      Having conducted the oversight visit to Imbabazane Local Municipality in response to the request of the extension of intervention terms of section 139(1)(b) of the Constitution, the Select Committee recommends to the Council as follows:       

 

20.1.1   The NCOP approves the notice of request of the extension of intervention in terms of section 139(1)(b) of the Constitution, until March 2015.  

 

20.1.2 The Ministerial Representative should fast-track the implementation of the municipal action plan in order to deal with the cross cutting challenges faced by the Municipality.  

 

20.1.3 The KwaZulu-Natal Provincial Department of Cooperative Governance and Traditional Affairs should table an exit report on the intervention in Imbabazane Local Municipality to the NCOP by April 2015.

 

20.1.4 On cross-cutting issues with regards to women and youth that were raised during the oversight visit, to be referred to the Department of Women in The Presidency and the National Youth Development Agency (NYDA). 

 

Report to be considered.