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.