ATC140711: Report of the Portfolio Committee on Cooperative Governance and Traditional Affairs on the Annual Performance Plan and Budget Vote 3 of the Department of Cooperative Governance and Traditional Affairs, dated 10 July 2014
THE PORTFOLIO COMMITTEE ON COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS ON
THE ANNUAL PERFORMANCE PLAN AND BUDGET VOTE 3 OF THE DEPARTMENT OF COOPERATIVE
GOVERNANCE AND TRADITIONAL AFFAIRS, DATED 10 JULY 2014
The Portfolio Committee on Cooperative Governance and
Traditional Affairs (the Committee), having met with the Department of
Cooperative Governance (DCoG) and the Department of Traditional Affairs (DTA)
on their Annual Performance Plans (APPs) and Budget for 2014/15 financial year,
reports as follows:
The Committee has a mandate to conduct oversight over
the Departments of Cooperative Governance and Traditional Affairs (CoGTA) and
its entities, namely, the South African Local Government Association (SALGA),
the Municipal Demarcation Board (MDB), the Commission for the Promotion and
Protection of the Rights of Cultural, Religious and Linguistic Communities (CRL
Rights Commission), the South African Cities Network (SACN) and the National
House of Traditional Leaders (NHTL). The Committee met with the Departments of
(CoGTA) on 8 July 2014 to receive a briefing on their APPs and Budget.
During the briefing, it was indicated that
allocations were made to the entities. However, the Programme of Parliament did
not afford the Committee sufficient time to invite entities to present their
APPs and Budgets prior to the budget vote debate. In due time, entities will be
invited to brief the Committee fully on their 2014/15 Budget and Annual
2. Briefing by the Departments of
Cooperative Governance and Traditional Affairs on the Annual Performance Plans
The mandates of the
are derived from the Constitutions of the Republic of South Africa,
and various legislations and international agreements. The primary mandate of
DCoG is to develop and monitor the implementation of national policy and
legislation seeking to transform and strengthen key institutions and mechanisms
of governance to fulfil their development role.
2.1. Vision of Department of Cooperative
Governance and Traditional Affairs
The Department facilitates cooperative governance in
all spheres of government in order to build a capable state that fulfils its
developmental role and supports all spheres of government, including the
institution of traditional leadership and associated institutions, through
of appropriate policies, integrated programmes and regulatory mechanisms;
of service delivery support through enabling mechanisms and intergovernmental
of social cohesion through the creation of enabling mechanisms for communities
to participate in governance.
and evaluation of the implementation of cooperative governance policies and
of traditional affairs activities across government through the development of
appropriate policies, norms and standards, systems and regulatory framework
governing traditional affairs;
provision of support to traditional affairs;
the information and knowledge management on traditional affairs; and
of culture, heritage and social cohesion.
2.2. Budget of the Department
Budget Vote 3 is aimed at improving cooperative
governance across the three spheres of government in partnership with
institutions of traditional leadership, to ensure that provinces and
municipalities carry out their service delivery and development functions
indicated in Table 1 below, there are 7 budget programmes that fall under this
: Overall Budget
Research and Knowledge Management
Governance and Intergovernmental Relations
and Municipal Government Systems
and Economic Development
The total allocation for this Vote in 2014/15 is R63.2
billion, which, when taking into account inflation, represents a real increase
of 3.69 per cent from R57.4 billion during 2013/14. As seen in the graph below,
spending is concentrated on three Programmes: Government and Intergovernmental
Relations (Programme 3), Infrastructure and Economic Development (Programme 6),
and to a lesser extent Disaster Response Management (Programme 4). These
Programmes host sub-programmes on Local Government Equitable Share, the
Municipal Infrastructure Grant (MIG) and Disaster Relief Transfers
As indicated above, all three sub-programmes receive
very large amounts of funds. As a result the problem of under-spending tends to
be more pronounced in these areas. In 2013/14 the Minister of Finance noted
that the, the withholding of local equitable share funds to municipalities
where conditional allocations from previous years have not been fully spent,
unspent disaster relief grants, delays in the Community Work Programme (CWP),
and slower than anticipated spending on school infrastructure backlogs are the
main areas of spending underperformance.
2.3. Programmes of the Department of Cooperative
Governance and Traditional Affairs
Programme 1: Administration
This Programme provides
management, leadership and administrative services to the Department of CoGTA.
In 2013/14 the overall
budget allocated to this Programme showed a real increase of 5 per cent. In
2014/15 there is a real decrease of -5.8 per cent. This is largely an effect of
the radical real decrease of almost 20 per cent in the
sub-programme where the bulk of the Programme
budget is concentrated. This sub-programme has been showing substantial
fluctuations. Its allocations in 2013/14 were increased substantially,
amounting to a 22 per cent real increase. The fluctuations have been attributed
to the personnel changes caused by the departmental restructuring in 2009 and
the security personnel whose contracts ended in March 2014
Programme 2: Policy, Research and Knowledge Management
The Programme provides
specialised support services to the Department in the areas of research and
knowledge management, policy formulation, monitoring and evaluation, and
information, communication and business technologies. In 2013/14 this was the
smallest Programme in the Department with 4 sub-programmes and a total budget
of R49.5 million in 2013/14. In 2014/15 the Programme has diminished further,
with only 3 sub-programmes and a total budget of R21.1 million.
The sub-programme on
Information, Communication and Business Technology,
allocation amounted to R29.8 million in 2013/14, contained the bulk of the
Programmes budget allocation. This sub-programme does not feature in 2014/15,
which explains the overall reduction in programme size and budget.
Programme 3: Governance and Intergovernmental
This Programme is meant
to improve the vertical and horizontal coordination and alignment between the
three spheres of government. It also promotes public participation in
governance through regulatory mechanisms as well as provides oversight,
intervention and support programmes to provinces, municipalities and associated
institutions. The Programme constitutes 70.5 per cent of the Departments total
allocation for 2014/15 and this is perhaps where Parliament should be vigilant,
especially in terms of oversight.
sub-programme shows substantial variance. The estimated
allocation for the sub-programme for 2013/14 was R16.2 million. This
appropriation was later adjusted to R8.9 million for reasons that are not
immediately clear. In 2014/15 the allocation has once again increased to R16.5
There is also a substantial variance in the allocation
Intergovernmental Fiscal Relations
sub-programme, which decreases by -54 per cent in real terms. The variance has
been attributed to a budget augmentation in the 2013 adjustment process for a
once-off payment to non-returning councillors whose term ended after the May
2011 Local Government Elections. The sub-programme also showed radical
variance during the previous financial years, from a total budget allocation of
R142.8 million in 2012/13 to R13.5 million in 2013/14. A roll-over allocation
in 2012/13 for once-off gratuity payments to 3 456 non-returning councillors
was also cited as a reason for this variance.
Under-spending in this sub-programme
remains a challenge. The Department has attributed this under-spending to the
delays with the start of some planned projects as a result of consultations
with different stakeholders and the offsetting of the Local Government
Equitable Share in terms of Section 21(4) of DoRA in respect of some
municipalities in consultation with National Treasury ... Under-spending
amounted to R713.7 million for the financial year ending on 31 March 2013.
Programme 4: Disaster Response Management
This Programme gives
effect to the Departments strategic goal of strengthening, coordinating and
supporting effective integrated disaster management and fire services. In this
vein, it seeks to promote an integrated and coordinated system of disaster risk
management that places special emphasis on prevention, mitigation and
preparedness on the part of national, provincial and municipal organs of state,
statutory functionaries and other role players involved in disaster risk
In 2014/15, a new sub-programme is introduced the
Municipal Disaster Recovery Grant
which is a conditional grant aimed at repairing infrastructure damaged by
disasters that occurred in 2009 and 2010 in Limpopo, KwaZulu-Natal and the
Western Cape. This sub-programme is largely responsible for the decrease of -13
per cent in the overall programme budget allocation for 2014/15. The grant was
introduced in the 2013 Division of Revenue Bill and amounted to R118.3 million.
In 2014/15 the grant allocation is indicated as R37.3 million. The reasons for
this variance are not immediately clear.
Programme 5: Provincial and Municipal Governance
The Programme provides
oversight, supports programmes and evidence-based regulatory mechanisms for
provincial and municipal government and associated institutions, and
facilitates effective service delivery.
There is a substantial
decrease (-41.41 per cent) in allocation with respect to the
which is responsible for the development of the Integrated Urban Development
Framework (IUDF). The decrease may be related to the fact that the bulk of
activities on the IUDF such as commissioning research papers, compiling a
discussion document and hosting a consultative conference were undertaken in
Programme 6: Infrastructure and Economic Development
This is one of the most
critical programmes in terms of governments broader policy priorities around
promoting economic support and development, investing in infrastructure, creating
jobs and enhancing local government capacity.
In 2014/15 the MIG allocation decreases by -3.8 percent
in real terms. In 2013/14 this allocation also showed a -2 per cent decrease.
The reduction, as the Minister of Finance noted in the 2013 Medium Term Budget
Policy Statement (MTBPS), supports reprioritisation towards bulk water
projects. However, under-spending on the MIG remains a concern.
There is a substantial real increase of 22.8 per cent
in the Community Work Programme. This relates to funds that were rolled-over
from the previous financial year. This sub-programme also incurred an irregular
expenditure of R276 million in relations to the awarding of contracts. The
Programme also sees the introduction of the Municipal Infrastructure Support Agency
(MISA), which was proclaimed as a government component in 2013. It replaces the
Special Purpose Vehicle sub-programme.
7: Traditional Affairs
This Programme will soon be a separate stand-alone
Vote, with effect from 2015/16. The overall allocation to this programme has
increased by 0.16 per cent in real terms, which is an improvement from the real
decrease of almost 3 per cent seen in 2013/14. This is mainly the effect of the
notable increase (24.2 per cent) in the allocation to the National House of
2.4. The Departments Contribution to the
National Development Plan (NDP)
The NDP recognizes the importance of
a responsive, accountable and efficient local government system, as a building
block towards the realization of a capable and developmental state.
proposes measures to move intergovernmental relations forward through improving
clarity in a differentiated system - regionalising services where there are
capacity constraints. A more coherent set of powers for metropolitan
municipalities should be provided. The role of provinces should be more focused
and a proactive approach must be sought to identifying and resolving
2.5. The Departments Contribution to the
Medium Term Strategic Framework (MTSF) 2014 - 2019
The Medium Term Strategic
Framework (MTSF) outlines work that will be done to implement the NDP over a
five year period. The sub-outcomes spread across the different chapters of the
National Development Plan that are particularly important towards improving
local government performance, ensuring quality service delivery and ultimately
putting the local government sector on a positive path to achieving the vision
are as follows:
Members of society have
sustainable and reliable access to basic services.
and democratic governance arrangements for a functional system of cooperative
governance are strengthened.
Sound financial and administrative
Promotion of social and economic
public employment programmes expanded through the CWP.
2.6. Key elements for the Department from
State of the Nation Address
The key directives from the State of
the Nation Address in June 2014 include the following:
Government will revitalize
local government through a plan of action to provide support to several
(municipalities are to provide and maintain adequate core set of basic
Job creation (CWP to provide 1
million work opportunities by 2019).
Addressing corruption and
Managing urban development.
2.7. The Departments Priorities and
Commitments for 2014 - 15
reliability and availability to support the strategic goals of the Department.
Roll-out and monitor the implementation of the local government performance
Management System. Develop and implement an integrated monitoring and evaluation
system for provincial departments of local government and municipalities.
Competitive, Inclusive and Sustainable Local Economies.
Review and develop policy and
assess impact of internal legislation and sector legislation on Provincial and
Local Government legislation
regulatory, institutional and support framework for LG across provinces and
Implement initiatives to
improve financial sustainability, revenue management and audit outcomes in
Local Government. Manage the implementation of the Municipal Property Rates Act
(MPRA) by implementing the regulatory framework, monitoring and supporting
municipalities regarding compliance with the MPRA.
Strengthen the capacity of
municipalities to deliver sustainable infrastructure and increase access to
basic services, including provision of free basic services to the poor.
Effectively manage the MIG Programme.
Department envisages a Back to basics on service delivery approach where
support will be provided to all municipalities that spent less that 80% of the
MIG in the previous financial year. The Department will also support forty
municipalities on mechanisms to provide Free Basic Services (FSB). It will also
develop an MIG performance and monitoring reporting system and align MIG
projects and water infrastructure backlogs.
Coordination of effective fire
services by enhancing the legislative framework for fire services to respond to
changing conditions. Promote a culture of disaster risk reduction to build
community resilience. This involve the development of a Disaster Management and
Fire Services Monitoring and Evaluation System to ensure improved disaster
management and fire services coordination.
the professionalization and performance of local government.
Effective and efficient
management and administration of CWP.
Provide and maintain 1 million work
opportunities in all municipalities. Establish and maintain partnerships to create
sustainable job opportunities for CWP participants.
strategy for the promotion of culture and heritage within traditional affairs
will be developed
the implementation of 5 existing active partnerships and collaborate with other
stakeholders for economic development in traditional communities.
Information on Proclamations establishing jurisdictional areas of
traditional councils will be gathered in 5 provinces. Reports on the
implementation of the Framework for the participation of traditional leaders in
municipal councils in 8 provinces will be provided.
Intervene and act
on critical failures.
2.8. The Departments achievements during
the period 2013 2014
Over the 2013 MTEF the spending focus of the Department
of CoGTA was on facilitating infrastructure delivery programmes and job
creation, providing operational support to municipalities, strengthening
technical and institutional capacity in local government, responding to
disasters, and providing targeted and specialised support to traditional
Specifically, the Department sought to:
Facilitate the implementation of a
policy framework that provides for a differentiated approach to municipal financing,
planning and support:
provincial workshops and 23 district workshops were conducted to improve
development planning capacity in municipalities outside metros and secondary
cities. The result of these workshops was that municipal officials have an
improved understanding of Development Planning processes.
Facilitate improved access to
basic services and sustainable infrastructure development:
supported 3 municipalities with the development of integrated waste
management plans. MISA
has been supporting more than
18 identified municipalities with acceleration of Grant Funded Projects (MIG,
MWIG and RBIG) in areas of water and sanitation, roads and storm water,
electricity, solid waste, housing, planning, community projects.
Chief Albert Luthuli LM, Alfred
Nzo DM and Amathole DM were supported to address water quality.
Vhembe District Municipality was supported with the
deployment of 54 artisans that focus on water process controllers, waste
process controllers and artisans to undertake operations and maintenance of
water and sanitation infrastructure. MISA was appointed by the Department of
Human Settlements as an implementing agent for the Bucket Eradication Programme
in the Northern Cape. To date, out of a total of 5500 buckets planned for
eradication, 1200 have been eradicated.
currently has 61 technical (engineering and planning) professionals deployed to
support a total of 121 municipalities throughout the country.
implementation of the CWP and sustainable economic development at local level
Against the target of 171 500, the Department created
and maintained 205 494
opportunities through the CWP.
Strengthening the effectiveness of
cooperative governance through the development and roll-out of policies and
The Department developed and submitted the
Intergovernmental Monitoring, Support and Intervention (IMSI) Bill to the
The Bill will be
processed through the parliamentary processes in 2014/15.
measures to fight corruption and unethical conduct:
finalized and promulgated the
Regulations governing the appointment and the appointment criteria of Municipal
Managers and managers directly accountable to municipal managers. It has also created
a database of municipal staff members dismissed for misconduct or resigned
prior to the finalisation of disciplinary proceedings in all nine 9 provinces.
The figure at the end of the financial year stood at 36 officials.
coordinate and support effective integrated disaster management and fire
the Disaster Management Amendment Bill, completed the consultation processes
directed by Cabinet and submitted the Bill to Cabinet for processing. In
implementing the existing legislation, the Department declared disasters in the
following provinces, namely, KwaZulu-Natal, North West, Northern Cape, Limpopo
and Western Cape, affected by floods and drought and supported them with
securing funds for immediate disaster relief.
participatory democracy through a refined committee ward model:
Against a target of 2000, the Department increased the
development and implementation of ward level operational plans in 2059
municipal wards out of the 4277.
Enhance the administrative and
financial capabilities of municipalities:
the target of 30, the Department assessed the credit control and debt
collection policies of 30 municipalities, identified and communicated to
relevant municipalities policy gaps requiring corrective action. Against the
target of 120 municipalities the Department supported
128 municipalities to implement the infrastructure projects funded
Against the target of 30, the
Department assessed the rating practices of 30 identified municipalities and
monitored their compliance with their rating practices on Regulations on rate
ratios promulgated under the Municipal Property Rates Act.
3. Key Challenges facing the Department
Despite the departmental efforts on monitoring and supporting
municipalities to fill critical posts with suitably qualified and competent
persons, some municipalities have continued to fill such posts without due
regard to the regulations on minimum competency requirements. The Systems Act
requires the MEC to take appropriate steps to enforce compliance which may
include an application to court for a declaratory order on the validity of the
If the MEC fails to do
this, the Minister may take the same steps.
The intermittent departmental
restructuring processes have resulted in the loss of critical skills and the
shrinking of the staff establishment, thereby rendering the department unable
to deliver on its mandate. The Department is engaging with the DPSA and the
National Treasury to review DCoGs organisational structure and the financial
requirements to address the above.
There are limited human and
financial resources to develop and maintain systems and processes necessary for
the enhancement of CoGTAs ability to fulfill its role as a champion of
4. Committee observations
Information presented by the
Department was appreciated and interrogated by Members of the Committee.
Members indicated that additional engagement is needed as soon as possible with
the Department of Cooperative Governance, the Department of Traditional Affairs
The Committee commended the
Department for spending on its budget.
The Committee noted that the
Department has reported that 21 initiates have died in the Eastern Cape,
Mpumalanga and the Western Cape Provinces. The Committee noted that addressing
this problem should also be the responsibility of the community, including the
parents of the initiates.
The Committee noted with concern
that the amount of buckets eradicated in previous financial year was very low
and in this regard, more should be done as to preserve human dignity. However
the Committee noted that this was a complex problem and an important component
to resolving it is linked to functional water and sanitation systems.
The Committee noted that
municipalities with non-functional Project Management Units (PMUs) MIG funds
are not spent. The Committee noted the Departments envisaged initiative to
strengthen the capacity of municipalities including providing support to all
municipalities that spent less than 80 per cent of the MIG in the previous
The Committee expressed concern on
whether the 61 technical support experts deployed by the MISA will be
sufficient to support all municipalities throughout the country.
Finally, the Committee noted with
concern cases of municipalities that still use their MIG allocation to finance
operational expenses. How the department was addressing this challenge needed
There should be closer
cooperation between the Departments of Traditional Affairs and Health with
regard to the problem of medical male circumcision. Measures should be put in
place to ensure zero fatalities. Government, the institution of traditional
leadership, and communities should work collaboratively in this regard.
The Department should report to
the Committee on a quarterly basis on their monitoring and evaluation of
municipalities so that the Committee can address these challenges proactively.
The Department should present a
plan to assist those municipalities that do not have functional Project
Management Units (PMUs) as well as a plan to address the use of conditional
grant funding for non-approved purposes. In this regard, the Department should
also possibly consider special funding for municipalities with no revenue base.
Based on the engagements between the Portfolio
Committee on Cooperative Governance and Traditional Affairs and Department of
Cooperative Governance and Traditional Affairs on 08 July 2014,
the Committee accepts the 2014/15 Budget and Annual Performance Plan of
the Department of the Cooperative Governance and Traditional Affairs.
Report to be considered.
 National Treasury (2013).
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