ATC190219: Report of the Select Committee on Cooperative Governance and Traditional Affairs Inspection Loco on Notice of Intervention issued in Terms of Section 139 (1) (b) of the Constitution in Kgetleng River Local Municipality, dated 19 February 2019

NCOP Security and Justice

Report of the Select Committee on Cooperative Governance and Traditional Affairs Inspection Loco on Notice of Intervention issued in Terms of Section 139 (1) (b) of the Constitution in Kgetleng River Local Municipality, dated 19 February 2019
 

1.         Background and Overview

1.1        The Select Committee on Co-operative Governance and Traditional Affairs, having considered the request by the National Council of Provinces (NCOP), to consider and report on the intervention notice invoked in Kgetleng River Local Municipality in terms of section 139(1)(b) of the Constitution, the Select Committee reports as follows:

 

1.2        In terms of NCOP Rule 101, the Office of the Chairperson of the NCOP referred the notice of intervention by the North West MEC for Cooperative Governance, Human Settlement and Traditional Affairs (CoGTA), to the Select Committee for consideration and reporting. On 1 February 2019, the delegation of the Select Committee conducted inspection loco in Kgetleng River Local Municipality.

           

2.         Objective of the Inspection Loco in Kgetleng River Local Municipality

 

2.1        The main objective was to interact with the internal and external stakeholders of the Municipality in order to solicit their opinions on the constitutional, procedural and substantive matters related to the invocation of section 139(1)(b) of the Constitution.

 

3.         Composition of the Delegation

 

3.1        The Select Committee delegation was composed of the following Members of Parliament and officials: (ANC); Hon T Wana, Eastern Cape (ANC); (ANC); Hon G Oliphant, Northern Cape (ANC); Hon D Ximbi, Western Cape (ANC); Hon H E Mateme Limpopo (ANC); Mr TM Manele, Committee Secretary (Committee Section), Mr B Mahlangeni, Researcher (Research Unit) and Mr N Mfuku, Content Advisor (Committee Section), Mr P Bongco, Committee Assistant (Committee Section) and Mr M Mbebe, Procedural Officer, NCOP 

 

4.         General Overview of the Inspection Loco at Kgetleng River Local Municipality

 

4.1        On 1 February 2019, the delegation of the Select Committee interacted with senior officials of the Department of CoGTA, representatives of the African National Congress (ANC), Democratic Alliance (DA), economic freedom fighters, representative of the South African Local Government Association and forums representing youth and women in construction

 

4.2.       The Departmental official made a presentation on the constitutional, procedural and substantive reasons for the intervention. The representatives of the political parties and Organised Labour, shared their opinions with regard to the intervention as tabled by the MEC for CoGTA.

 

5.         Presentation by Department of CoGTA

 

5.1.    The Head of the Department of Cooperative Governance, Human Settlement and Traditional Affairs briefed the delegation of the select committee on constitutional, procedural and substantive matters related to the intervention.  The presentation on the focused on service delivery, governance and financial management

 

6.          Service delivery 

 

6.1.       Service delivery affected by lack of operation and maintenance of water treatment plant.

6.2.       Service delivery adversely impacted by not renovating the Koster water treatment plan

6.3.       Service delivery affected by inadequacy of capacity in water treatment plant facilities 

 

 

 

 

7.          Governance

 

7.1.       The municipality experiencing weak oversight characterised by backlog of oversight report

7.2.       The municipality encountering violent service delivery protests characterised by burning of the properties of the mayor

 

7.2.       The service delivery protests adversely affected the rendering of services which led to sewer spillage and interrupted supply of water and collection of refuse.          

 

8.         Finance management

 

8.1.       The municipality had a trend of expenditure of municipal grant for past three years which resulted to the loss of 7 million

 

8.2.       The municipality lost a case against rates payers association on the rates and taxes compliance issue of the municipal property rates act. The lost affected the cash flow and finances of the municipality    

 

8.3.       The municipality has an Eskom debt of which has a potential to grow due to poor management of payment agreements.  

 

9.     Progress Report on the Status of the Intervention in the Local Municipality  

 

9.1.    The municipal has made progress with regard to the recruitment process to fill vacant posts, submitted the procurement plan, developed communication strategy, developed monitoring and evaluation tool and submitted training needs 

 

9.2.    On matters related to financial management, the administrator reported that the municipality has developed stringent cash flow plan, all payment processed and approved on time, restructured Eskom debts, cancelled all old contracts, paid creditors within 30 days.

 

9.3.  With regard to building capable institution, the administrator reported that the municipality has adopted policies in August 2018, implemented the change management plan, conducted employee satisfaction survey, took all municipal employee for medical check-up,

 

9.4.    On matters related to service delivery, the administrator reported that the municipality has procured households refuse bins, procured Compactor truck, installed skip beans in strategic areas, cleaned all illegal dumping around the community  

 

10.       Opinions of Political Parties and Stakeholders of the Municipality  

 

10.1      During loco-inspection, the Select Committee interacted and solicited opinions of the political parties, internal and external stakeholders of the Municipality. Their opinions are tabled below:   

 

11.        Opinion of the African National Congress (ANC)

 

11.1      The representative of the ANC indicated that the municipal council has acknowledged the PEC’s decision to invoke section 139 (1) (b) of the constitution. However, the member of the ANC raised concerns with regard to lack of support in terms of section 154 of the constitution, lack of support on matter related to water provision, and the withholding of water and relief grants.

 

12.        Opinion of the Democratic Alliance (DA)

 

12.1      The representative of the DA tabled an opinion that supported the intervention. However, concerns were raised with regard to progress made by the administrator, lack of service delivery more especially the provision of water, load-shading and, financial capability of the municipality.  

 

13.     Opinion of the Freedom Front  

 

13.1      The representative of the Freedom Front tabled an opinion that supported the intervention, and further raised concerns that the municipality has inherited administrative and financial problems caused by the previous councillors. The representative then emphasised the need for national and provincial governments to support the municipality

 

 

14.      Opinion of South African Local Government Association

 

14.1.  The representative of the South African Local Government Association tabled opinion that welcomed and supported the invocation of section 13 (1) (b) of the constitution. The representative emphasized with the framework of intergovernmental relation the need to ensure that at both political and technical level, there is a platform for common understanding and approach to the issuing of interventions in the municipalities.

 

15.        Opinion of Organised Labour 

 

15.1.     The representative of South African Municipal Workers Union tabled opinion that welcomed and supported the issuing of intervention in terms of section 139 (1) (b) of the Constitution. The representative, however, raised concerns with regard to non-payment of employee benefits. 

 

15.2.     The representative of the IMATU tabled the opinion that support the invocation of section 139 (1) (b) of the Constitution. However, concerns were raised with regard to payments of medical funds, third party and low staff moral               

 

16.        Opinion External Stakeholder

 

16. 1     The representative of Business Forum tabled the opinion that support the invocation of section 139 (1) (b) of the Constitution. However, the representative of Business Forum raised concerns with regard to municipal Eskom debts   

 

 

17.        Select Committee Observations and Opinion

 

17.1      In terms of the constitutional and procedural matters, the Select Committee has observed that the National Minister for CoGTA, the NCOP, the North West Provincial Legislature and the Municipality were notified of the intervention about the substantive matters related to the invocation of section 139 (1) (b) of the Constitution.

 

17.2      The Select Committee has also noted the concerns raised by both the internal and external stakeholders more especially with regard to low staff morale, non-payment of employee benefits and Eskom debts, 

 

17.3.     The Select Committee is of the view that the initial ground of stakeholders’ engagement will influence the focus of strategic planning and any other planning and intervention initiatives within the municipality.

 

18.        Recommendations of the Select Committee

           

18.1.     Having conducted the oversight visit to Kgetleng Local Municipality and interacted with members of African National Congress, the Democratic Alliance and representatives of, the Select Committee on Co-operative Governance and Traditional Affairs recommends as follows:   

 

18.1.1   The NCOP approves the intervention in Kgetleng Local Municipality in terms of section 139 (1) (b) of the Constitution  

 

18.1.2   The Administrator should fast-tract the process of implementing the municipal turn-around plan, in accordance with the terms of reference assigned by the North West MEC for CoGTA.

 

18.1.3 The Administrator should provide progress reports on payment of employees benefits and Eskom payment plan

  

18.1.4. The North West MEC for CoGTA should conduct forensic investigation on supply chain management in the municipality and table the report to the National Council of Provinces  

 

18.1.5.  The North West MEC for CoGTA should table quarterly progress report to the NCOP on the status of the intervention in the Municipality; including challenges encountered.

 

18.1.5   The Select Committee on Co-operative Governance and Traditional Affairs, in co-operation with the relevant Portfolio Committee in North West State Provincial Legislature, should in future conduct a follow-up oversight visit to the Municipality in order to evaluate the progress made in respect of the intervention in the Municipality.