ATC200318: Report of the Select Committee on Co-operative Governance and Traditional Affairs Inspection in Loco on Notice of Dissolution issued in terms of section 139(1)(c) of the Constitution (1996), in City of Tshwane Metropolitan Municipality, dated 18 March 2020
Report of the Select Committee on Co-operative Governance and Traditional Affairs Inspection in Loco on Notice of Dissolution issued in terms of section 139(1)(c) of the Constitution (1996), in City of Tshwane Metropolitan Municipality, dated 18 March 2020
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 the City of Tshwane Metropolitan Municipality in terms of section 139(1)(c) of the Constitution, reports as follows:
1.2 In terms of NCOP Rule 101, the Office of the Chairperson of the NCOP referred the notice of dissolution by the Premier of Gauteng Province to the Select Committee for consideration and reporting. On 17 and 18 March 2020, the Select Committee conducted a loco inspection in the City of Tshwane MetropolitanMunicipality.
2. Objective of the Loco Inspection inthe City of Tshwane Metropolitan 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)(c) of the Constitution.
3. Composition of the Delegation
3.1 The Select Committee delegation was composed of the following Members of Parliament: Hon A Gxoyiya (ANC) Northern Cape; Hon ZV Ncitha (ANC) Eastern Cape; Hon IM Sileku (DA) Western Cape; Hon SE Mfayela (IFP) KwaZulu-Natal; Hon EM Mthethwa (ANC) KwaZulu-Natal; Hon M Dangor (ANC) Gauteng; Hon K Motsamai (EFF) Gauteng; Hon C Visser (DA) North West; Hon S Zandamela (EFF) Mpumalanga; Hon MPMmola (ANC) Mpumalanga; Hon S Shaikh (ANC) Limpopo andHon TSC Dodovu (ANC) North West.
3.2 Parliamentary Officials: Mr TM Manele (Committee Secretary: Committee Section); Mr N Mfuku (Content Adviser: Committee Section); Mr L Ben (Committee Assistant);Mr M Mbebe (Procedural Officer: NCOP).
4. Outline of Stakeholders of the Loco Inspection atCity of Tshwane Metropolitan Municipality
4.1 On 17 and 18 March 2020, the delegation of the Select Committee interacted with senior officials of the Department of CoGTA (led by the MEC), representatives of the African National Congress (ANC),Democratic Alliance (DA), Economic Freedom Fighters (EFF),Freedom Front Plus (FF+), African Christian Democratic Party (ACDP), Congress of the People (COPE), theSouth African Municipal Workers Union (SAMWU), Tshwane Progressive Professional Forum, Youth Formation, Women’s Forum, Business Forum, Traditional Leaders, South African National Civic Organization (SANCO) and the South African Local Government Association (SALGA).
5. Constitutional and Procedural Matters Related to the Intervention and Progress Report
5.1 Letters of concurrence were written on the 06 March 2020 to the Minister of Cooperative Governance and Traditional Affairs, the Chairperson of the NCOP, the Speaker of Gauteng Provincial Legislature and the Speaker of the City of Tshwane Metropolitan Municipality. The Minister approved the intervention on 9 March 2020.
5.2 The dissolution takes effect 14 days from the date of receipt of the notice by the NCOP, unless set aside by the Minister or the NCOP before the expiry of those days. Currently, the Minister has concurred with the decision of the Gauteng Provincial Executive Council (PEC) to dissolve the City.
6. Presentation by the MEC for Human Settlements, Urban Planning, Cooperative Governance and Traditional Affairs
6.1 On 17 March 2020, the MEC briefed the delegation of Select Committee with a report on the State of Affairs in the City of Tshwane Metropolitan Municipality with reference to the financial management; Service Delivery; Governance (including issues of corruption and maladministration); and Institutional Capability (Administration). The presentation also provided progress report to date, since the resolution of EXCO meeting held on 04 March 2020.
6.2 The MEC for Human Settlements, Urban Planning, Cooperative Governance and Traditional Affairs made a presentation on the constitutional, procedural and substantive reasons for the invocation of section 139(1)(c) of the Constitution in the Municipality, while the representatives of the political parties and OrganisedLabour, and external stakeholders of the Municipality shared their opinions with regard to the intervention.
6.3 Since 2016 post local government elections, the City of Tshwane has experience serious governance challenges, ranging from the appointment of the City Manager, allegations of widespread corruption and an account of unacceptable, unjustifiable and unreasonable walkouts and disruptions by councillors during council meetings.
6.4 The former MEC for CoGTA and Human Settlements, Mr Paul Mashatile, wrote a letter in terms of Section 54A(7)(a) of the Local Government: Municipal Systems Act, as amended (Act No. 32 of 2000) to the then Executive Mayor, regarding the appointment of the City Manager, DrMosoloa on 22 February 2017.
6.5 The MEC of Human Settlements, Urban Planning, Cooperative Governance and Traditional Affairs met with the Senior Managers of Tshwane on 07 March 2020. A Planning Workshop with OTP, CoGTA and Tshwane to develop the Programme of Action for the 90-days was held on 11-12 March 2020. Engagements with the communities of Tshwane were done by EXCO on 11 March 2020. A Legal Strategy was drafted in consultation with the Counsel. The MEC will be meeting with the CEO of the Independent Electoral Commission (IEC) on 18 March 2020, regarding the bi-elections at Tshwane.
6.6 Subsequent to the Executive Council meeting held in 05 December 2019 and the resolution to apply section 139(1)(a) and 154 of the Constitution at the City of Tshwane.The Executive Authority took a number of steps to bring about political stability in the Municipality, some of which wereissuing of directives on 14 January 2020; Establishing a section 154 technical support team in January 2020; Convene a meeting with the Speaker with a view to discuss the collapse of a number of council sittings. The Speaker failed, neglected and ignored the invitation. The MEC convened a meeting of the Whips of political parties in council on the conduct of councillors on 27 January 2020.
6.7 The City has been achieving unqualified audit opinion for the last three consecutive years, with findings identified on leadership, expenditure management, compliance with legislation and internal controls, etc. There have been a number of motions of no confidence against the former Mayor SollyMsimang, former Mayor Mokgalapa, the current Speaker councillor Mathebe and a motion to suspend the former City Manager. These took during the following dates: 27 September 2018, 25 April 2019, 25 July 2019, 29 August 2019, 28 November 2019, 5 December 2019, 16 January 2020, 30 January 2020, and 27 & 28 February 2020.
7. Critical issues affecting the City of Tshwane Metropolitan Municipality based on the Back to Basic Approach
7.1 The MEC briefed the delegation of the Select Committee and the municipal stakeholders on critical issues affecting the City of Tshwane Metropolitan Municipality based on the Back to Basic Approach. The presentation focused on financial management;Service Delivery;Governance (including issues of corruption and maladministration); and Institutional Capability (Administration).
8. Functionality of Ward Committees and Back to Basic Approach
8.1 There is a fundamental disconnect between the Executive and ward councillors and this undermines participatory democracy, as provided in the local government legislative frameworks. Since the inception of the municipal council in August 2016, not a single Ward Committee has been established. It is now towards the end of the term and still Ward Committees are not in place. Thisis non-compliance and contravention of the law.
9. Service Delivery and Back to Basic Approach
9.1 The City of Tshwane has been affected by the serious service delivery challenges, particularly in Regions 5 and 7. The most affected areas are those that were historically part of the North West and Mpumalanga Provinces. In the 2018/19 financial year, the City did not achieve the set annual targets for provision of water to formal households, provision of sanitation to formal and informal households. The City missed the targets by far below the annual targets.
9.2The City of Tshwane also has serious challenges of water quality, as well as reliability of water provision. This is evident in the Hammanskraal and surrounding areas where the quality of water was found to be unsuitable for human consumption as tested by CSIR and the South African Human Rights Commission.
9.3 The water shortage is a high risk for the municipality as it posed health hazard in communities, schools and health care facilities (especially Jubilee Hospital), which had to close and transfer patients to other areas. It is an issue that has high potential to lead to unrest within the affected areas.
9.4 Notwithstanding adverse reports by SAHRC and DWS that the quality of water in Hammanskraal is not fit and suitable for human consumption, the City of Tshwane has not yet resolved the challenges of water security and quality.
10. Good Governance and Back to Basic Approach
10.1 It is evident through the collapse of council meetings wherein the municipal council could not complete the business of council, that there are serious leadership challenges in the Municipality. There is total disrespect of the Rules and Orders of Council by those that are supposed to protect and preside over the same Rules and Orders. Often, Rules and Orders are used and interpreted to pursue certain political interest as opposed to facilitating the smooth-running of council.
10.2 Overall, the totality of the above issues has created institutional instability in the City of Tshwane. Irregularity in appointment of staff, for example the appointment of the Head of Emergency Services.
10.3 Unlawful awarding of tender to engineering company Glad Africa, which has also been identified by the Auditor-General as such. Alleged irregular appointment of Aurecon to dispose of the municipal property. Alleged loss of R1.6billion to PEU Contract after same was reappointed in 2018.
10.4 There is general instability of the governing coalition in the Municipality since the 2016 local government elections. One of the underlying causes of the problem is the lack of formal coalition regulatory instruments (coalition agreements).
11. Unauthorized Irregular, Fruitless and Wasteful Expenditure
11.1 The irregular expenditure accounts for 73% of the total UIFW expenditure, followed by an unauthorized expenditure of 25% and lastly, fruitless and wasteful expenditure at 2%.The MPAC reported indicated that the City investigated at least R1.7 billion of the total R6.9 billion UIFW expenditure. However, the report does not indicate if any monies were recovered thus far.There is also slow progress in investigation of UIFW expenditures, although an engagement was made with the City and assurance was provided that some cases have been referred to SAPS.
12. Financial Management and Back to Basic Approach
12.1 The overall performance of the City of Tshwane on USDG as at 31 January 2020 was at 23%. The USDG (R541million) second tranche has been withheld due to low expenditure on the projects. The NDPG (R4.5million) tranche has been withheld due to non-submission of new projects for approval by the National Treasury. In terms of the Human Settlements Development Grant, the City failed to spend its allocation as at 31 December 2019.
13. Institutional and Administrative Capability and Back to Basic Approach
13.1 The suspension of the Senior Managers in service delivery cluster, namely, Head of Department of Human Settlements and Roads and Transport, respectively, is amongst others the cause of institutional instability.The City Manager position is vacant as a result of unjustifiable separation settlement. Unprecedented labour unrests in the Municipality (The City lost over R400 million during this period).
14. Opinions of Political Parties and Stakeholders of the Municipality
14.1 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:
15. Opinion of the African National Congress (ANC)
15.1 The representative of the ANC tabled submission that support the invocation of section 139(1)(c) of the Constitution in the Municipality. He indicated that some of the substantive matters supporting the invocation of the dissolution included the absence of the Mayor; of the City Manager; MMCs, adjustment budget and non-spending of CAPEX. The representative raised concerns that the failure of the municipality to establish functional Ward Committees has violated section 52(e) of the Constitution, which requires the Ward Committees to be established within 90 days.
15.2 The representative indicated that the City of Tshwane has also serious challenges of water quality, as well as reliability of water provision. This is evident in the Hammanskraal and surrounding areas where the quality of water was found to be unsuitable for human consumption as tested by the CSIR and the South African Human Rights Commission.
15.3 The representative further indicated that in 2018, there was an investigation around the appointment of unqualified people. Some of the major concerns raised by the representative included unauthorized, wasteful and fruitless expenditure raised by the audit outcomes of the Auditor-General. The representative alluded that support has been provided to the Municipality in terms of section 139(1)(a) of the Constitution.
16. Opinion of the Democratic Alliance (DA)
16.1 The DA tabled a submission that did not support the invocation of section 139(1)(c) of the Constitution. The representative informed the delegation that the City is in a stable financial position as indicated by its credit rating upgrade,and the improvement in its core financial ratios along with managing its relationship with its creditors. Example was provided that cash and cost coverage was initially 15 days and currently 53 days.
16.2 The representative informed the delegation that the city has continually received unqualified audit reports, indicating that the Auditor-General was satisfied with the City finances. The representative indicated that SCM policy has been reviewed, in order to tighten up spending and prevent any unnecessary wasteful or irregular expenditure. The representative urged that the Municipality has successfully challenged and corrected issues regarding problematic tenders such as PEU smart meters’ contract, set aside and terminated the Glad Africa contract.
16.3 On service delivery the representative indicated that the municipality has run with the provision of water, electricity and waste removal. The issues pertaining onRooival Waste Water Treatment Plant have been addressed, and that a R250 million tender has been awarded to refurbish the plant.
16.4 While acknowledging that the Municipality does not have an Executive Mayor and aCity Manager, the reason behind the vacancies is because of a failure of the ANC and EFF councillors who have continually collapsed or purely not attending the meetings of the council since December 2019.
16.5 The representative indicated that the DA on the invocation of section 139(1)(c), they have approached the high court to have the matter stopped as they believe the reasons that have been provided by the Provincial Department of CoGTA forming the basis for the intervention, are frivolous and without any basis or clear understanding of the facts pertaining to service delivery in the City.
16.6 The representative argued the decision to dissolve the council of Tshwane has no basis in law, and has no facts supporting its justification because it is being done purely for political reasons.
16.7 The representative further argued the implication of having citywide by-election in90 days subsequent to the dissolution, would place an immense strain on the IEC so close to a municipal election year and that, with the current corona virus outbreak, such a decision could pose severe health risks to the lives of Tshwane residence.
17. Opinion of Economic Freedom Fighters (EFF)
17.1 The representative of the EFF tabled a submission that supported the invocation of section 139(1)(c) of the Constitution in the Municipality. The representative raised concerns that the Municipality, under the leadership of the DA, has failed to deal with dumping sites and cable theft in the township and underspending of budget. The representative further raised concerns about the non-suspension of the Speaker, for suppressing democratic practices in the council and the use of private companies’ security.
18. Opinion of Freedom Front Plus (FF+)
18.1 The representative of the FF Plus tabled the submission that did not support the invocation of section 139(1)(c) of the Constitution. They raised concerns that when the former Executive Mayor instituted investigation on allegations of illegal and improper management practices by the former City Manager that could lead to suspension, the EFF and the ANC voted against the suspension and possible appointment of a City Manager that would ensure effective administration of the City.
18.2 The representative indicated that the former City Manager implemented the Glad Africa contract, which hampered progress and service delivery in the City.
18.3 It was indicated that governance was hampered by the collapsing of council meetings since December 2019, and the failure of the ANC and EFF to pass a vote of no confidence against the Executive Mayor.
18.4 The representative indicated that the people of Hammanskral have been provided with clean water suitable for human consumption. The representative expressed disappointment about the invocation of section 139(1)(c) of the Constitution. He indicated that invocation came after political parties in the Municipality agreed to have a meeting, under the leadership of the Deputy Speaker, were the agenda was to table a motion of no confidence against the Mayor and the Speaker, including the election of a Mayor, appointment of the City Manager and the approval of the adjustment budget.
19. Opinion of Congress of the People (COPE)
19.1 The representative of COPE tabled a submission that did not support the invocation of section 139(1)(c) of the Constitution. He argued that there were no compelling reasons for the dissolution of the municipal council. It was indicated that there were walkouts in council meetings and lack of consequence management.
20. Opinion of African Christian Democratic Party (ACDP)
20.1 The representative of the ACDP did support the invocation of section 139(1)(c) of the Constitution in the Municipality. Concerns were raised on the awarding of tenders since 2016, and lack of consequence management and the use of insourcing of the private security.
21. South African Municipal Worker Union (SAMWU)
21.1 The representative of the Union supported the invocation of section 139(1)(c) of the Constitution in the Municipality. The Union representative indicated that it has been engaging councillors on the collapsing of council meeting since 2019. On 05 February 2020, the Union marched to the office of the Executive Mayor and City Manager, demanding that councillors process reports on 27 February 2020.
21.2The representative raised concerns that the City does not have an Executive Mayor and Mayoral Committee and this has impact on municipal governance on matters related to evaluation of credit control, revenue, debt collection, enhancement of partnership, Ward Committees and setting of section 79 committees.
21.3 On impact on administration, the Union representative raised concerns about the non-approval of adjusted budget, departmental overspending, incurring of unauthorized expenditure, the possibility of the City not to pay overtime, salaries and benchmarking pays scheduled for July 2020.
21.4 The Union indicated that the absence of the City Manager has an impact on fiduciary duties like managing bank account; signing letters on grant utilization and approval of tenders.
22. Opinion of SALGA
22.1 The MEC for CoGTA in Gauteng, announced on 23 Jan 2020 the suspension of two Councillors, Speaker of Tshwane and the former Speaker of the City of Johannesburg; upon being alerted to the suspension, SALGA initiated an engagement to obtain factual information regarding the suspension of the Councillors. During such engagement and upon assessment, it became evident to the Association that the allegation levelled against the MEC were not substantiated with demonstrable evidence when considering the inherent dysfunctions endemic in the Municipality.
22.2 SALGA has made several attempts to meet with the City of Tshwane leadership but to no avail. In order to meet the objectives of local government, SALGA recommended the following basic actions:- Election of Executive Mayor; Appointment of Members of Mayoral Committee; Appointment of City Manager; Establishment of Ward Committees; formalisation of execution of Executive and Legislative function of Council.
22.3 However, the Association argues that the in order to meet the objectives of local government, the dissolution of the Metropolitan Council must meet the following basic functions: Development of a clear and concise Intervention Execution Plan with clear outputs, targets and timeframes; Clear and elaborate Terms of Reference for the appointment of the Administrator together with Team of Experts – very important that a team is deployed; Team to be appointed to possess necessary expertise, experience and qualifications; Regular and Structured Reports on Implementation of the Intervention Execution Plan; Convening peaceful by-elections and reconstitution of new municipal council.
22.4 SALGA raised a concern of a possibility that the by-election as a result of the dissolution of the municipal council, may not result in an outright majority in the council.
23. Opinion of DA Youth Formation
23.1 The representatives of this forum tabled a submission that did not support the dissolution of the Tshwane City Metropolitan Council, instead indicating that the City of Tshwane Metropolitan Council has a track record of achievement on its mandate.
24. Opinion of DA Women Forum
24.1 The DA Women’s Forum re-iterated the view of its sister formation, the DA Youth Formation, and thus does not support the dissolution of the Metropolitan Council. They argued that there was no crisis in the Municipality. The City has made progress in respect scheduling a Youth Summit and hosting Young Chief Executive Officers, including Jacaranda Service Festival and Taking the Girl Child to School.
25. Opinion of Amakhosi
25.1 The Amakhosi tabled the submission that did support the invocation of section 139(1)(c) of the Constitution. However, raised concerns with regard to the little support they were receiving, which limits the responsibility to provide social cohesion. The last support was provided in 2019. They have raised matter with the Speaker of the Municipality and the MEC for CoGTA.
26. Mamelodi Youth Forum
26.1 The Mamelodi Youth Forum tabled its presentation advocating for non-dissolution of the Tshwane City Metropolitan Council. They argued that the Municipality has provided the involvement of the youth and access to the municipal tendering processes. There has been progress by the Municipality on the Extended Public Works Programme.
27. Opinion of Progressive Women Forum
27.1 The Progressive Women’s Forum tabled a request that supports the dissolution of the Metropolitan Council. Since 2016, the Municipality has not implemented the poor of the poor policy. The Municipality is no longer providing dignitary sanitary pads. There is non-implementation of R1000 voucher for early childhood development. The drug rehabilitation programmes implemented.
28. South African Civic Association
28.1 The South African Civic National Association (SANCO) equally tabled a presentation in support of the dissolution of the Metropolitan Council. They argued that there is generally lack of administrative capacity in the Municipality. Further, there is non-maintain ace of township parks. Challenges on the municipal billing system were also highlighted.
29. Progressive Professional Forum
29.1 Similarly, the Progressive Professionals Forum tabled a presentation in support of the dissolution of the Metropolitan Council. Raised concerns on the lack of professionalism in the Municipality. There was lack of service delivery for the past three years, Tshwane Rapit Transport System, traffic congestion. The Customer Care of the Municipality is not serving value to the community. Lastly, farms were converted to game farms and with land overly priced.
30. Tshwane ANC Youth League
30.1 The ANC Youth League tabled a presentation in full support of the dissolution of the Metropolitan Council, citing a series of municipal dysfunctions and inability to deliver basic services like clean water supply, a human rights need, refuse removal, dysfunctional street lighting, potholes and general lack of cleanliness, a requirement necessary to comply with the Constitution regarding providing and maintaining a clean and safe municipal environment.
31. Tshwane Concerned Residence
31.1 The Tshwane Concerned Residence supports the dissolution of the Metropolitan Council. They raised concerns on the high rate of crime, non-implementation of by-laws, closure of business like Edgars (where 500 people lost jobs), non-supply of water tankers and running water to schools.
32. Inner City Rejuvenation Forum
32.1 The Inner City Rejuvenation Forum tabled a presentation in support of the dissolution of the Metropolitan Council. They were concern about the governance of the Municipality, corruption, deterioration of services, refuse removal, crime, business closures due to high commercial rent.
33. Chamber of Commerce and Business Forum
33.1 The Tshwane Chamber of Commerce and Business Forum equally made a presentation in support of the dissolution of the Metropolitan Council, asserting an urgent need for metropolitan community to be given an opportunity to give new councillors a fresh mandate in view of the inherent dysfunctions in the Municipality.
34. Observations and Opinion of the Select Committee
34.1 The Select Committee has observed and noted that the notice of intervention in terms of section 139(1)(c) of the Constitution in the City of Tshwane Metropolitan council has complied with the constitutional requirements of notifying for concurrence the Minister of CoGTA, the Chairperson of the NCOP, the Speaker of Gauteng Provincial Legislature and the Speaker of the City of Tshwane Metropolitan council.
34.2 The MEC of Human Settlements, Urban Planning, Cooperative Governance and Traditional Affairs, in trying to provide support to the City, has initiated directives in terms of section 139(1)(a) and 154 of the Constitution. However, the municipal council did not cooperate.
34.3 The Select Committee has noted that the Ministerial approval of the invocation of section 139(1)(c) in the City of Tshwane Metropolitan council has four conditions:
34.3.1 Firstly, that the Administrator be appointed by an identified team of experts with clear terms of reference that will deal with the challenges experienced by the Municipality and Municipal council, including service delivery mandates, financial management and audit issues, corporate and financial transgression, and the institutional and administrative challenges.
34.3.2 Secondly, that the Administrator and the intervention team should work closely with Back to Basic Coordinators of the Provincial Department of CoGTA.
34.3.3 Thirdly, that the MEC of Human Settlements, Urban Planning, Cooperative and Traditional Affairs, should regularly inform the Minister of CoGTA on any further developments on the intervention, and provide monthly progress reports and close-out report upon revocation of intervention.
34.3.4 Fourthly, that the MEC of Human Settlements, Urban Planning, Cooperative Governance and Traditional Affairs through the Administrator, liaise with the IEC to ensure the arrangement for conducting and undertaking by-election processes.
35.1 The Select Committee notes with great concerns the general attitude and conduct of the Speaker of the Municipality, who assumed the powers and functions of the council, without authorisation nor delegation to the extent of eventual stalling of council meetings.
35.2 The Select Committee is of the opinion that governance problems related to political instability in the City, has resulted in incidences of council’s inability to perform as required by legislation, including passing of an adjustment budget and sitting of council, which are executive obligations.
35.3 Sections 152 and 153 of the Constitution clearly set out the service delivery obligations of municipalities. In the City of Tshwane, the Municipality has failed to ensure the provision of services to communities in a sustainable manner, including waste removal and water reticulation.
35.4 The Municipality has failed to promote safe and healthy environment. There is little or no focus on repairs and maintenance resulting in distribution losses or services not rendered, particularly in respect to pollutedHammanskraal drinking water crisis. It is national minimum standards on potable water supply in terms of the Water Services Act (Act 108 of 1997), clearly a failure to meet its executive obligations.
35.5 The Municipality has also failed to encourage the involvement of communities and community organizations in the matters of the City of Tshwane. The Select Committee has noted that stakeholders concurred that the Municipality is in a state of paralysis, was ungovernable has no community structures in place, including ward committees.
35.6 The City of Tshwane is the single-largest metropolitan Municipality in the country. Pretoria is the capital of South Africa. It has the second-largest number of embassies in the world after Washington DC. Many embassies thus call this City their home. The dissolution of a Metropolitan Municipality is the first during the democratic South Africa Government since 1994. The inability of a capital City not to have City Manager is a very serious challenge.
35.7 The Select Committee has noted that the Premier of Gauteng Provincial Government has made an assessment on service delivery, financial management, organisational development, good governance challenges faced by the Municipality, which provided rational and justification for the invocation of section 139(1)(c) of the Constitution.
35.8 The Select Committee has noted with concerns that the Municipality has in terms of municipal audit outcomes failed to put in place an effective system of internal control for consumer debtors and revenue as required by section 64(2)(f) of the MFMA. Furthermore, the Select Committee noted that some of the fruitless and wasteful expenditure incurred by the Municipality were not investigated timeously, to determine if any person is liable for the expenditure, as required by section 32(2)(b) of the MFMA.
35.9 Measures to combat the abuse of the SCM system were not implemented as per the requirements of SCM regulation 38(1), because some of the contracts were awarded to providers who during the last five years, failed to perform satisfactorily on a previous contract with the other organ of state.
35.10 An effective system of internal control of assets, including and adequate asset register was not in place, as there was insufficient accounting over new and completed assets, as required by section 63(2)(c) of the MFMA.
35.11 Appointments were made in posts which were not provided for in the approved staff establishment, as required by section 66(3) of the Municipal Systems Act.
35.12 The existence of special circumstances is a prerequisite to the exercise of the power to dissolve a municipal council. Dissolution should be an appropriate step to remedy the situation, if exceptional circumstances exist, and such intervention was due to the unwillingness of the municipal council to resolve the problems concerned.
35.13 Given the collapse of council meetings, leadership challenges, vacant position of City Manager, EXCO, water challenges, non-establishment of Ward Committees amongst others, paralysed the administrative and political capacity of the Municipality to manage its affairs and to deliver basic services to its residents, and provide accountable government for the people of Tshwane. It is submitted that the decision to intervene in terms of section 139(1)(c) of the Constitution under these circumstances, is justified and warranted that exceptional cases existed, since all forms of support in terms of other interventions were exhausted.
35.14 The Select Committee has noted during its deliberations on the matter, the majority of political parties in the Committee supported the intervention on the basis of the substantive, procedural and constitutional matters in the Municipality. The Democratic Alliance (DA) stated that its rejection of the report, together with its recommendations, be noted.
36.1 Having conducted the oversight visit to the City of Tshwane Metropolitan counciland interacted with internal and external stakeholders, acknowledging the statement made by the President of the Republic of South Africaon measures to combat COVID-19, the Select Committee on Co-operative Governance and Traditional Affair (Water, Sanitation and Human Settlements),recommends as follows:
36.1.1 The NCOP approves the intervention in the City of Tshwane Metropolitan Municipalityin terms of section 139(1)(c) of the Constitution.
36.1.2 The Administrator should fast-tract the process of appointing and filling of the position of City Manager.
36.1.3 A seasoned, competent and capable administratorshould be appointed in the City of Tshwane, and supported by a team of experts, with clear Terms of Reference.
36.1.4 The MEC of Human Settlements, Urban Planning, Cooperative Governance and Traditional Affairs should institute a forensic investigation in term of section 106 of Local Government: Municipal Systems Act (Act 32 of 2000),on all allegations of corruption and financial mismanagement, and table a report to the NCOP and the Gauteng Provincial Legislature.
36.1.5 The MEC of Human Settlements, Urban Planning, Cooperative Governance and Traditional Affairs quarterly report to the NCOP on the status of theintervention in the Municipality, including the termination report.
36.1.6 The Select Committee on Co-operative Governance and Traditional Affairs (Water, Sanitation and Human Settlements) should,inco-operation with the relevant Portfolio Committee in Gauteng Provincial Legislature, conduct a follow-up oversight visitafter the by-election to the Municipality, in order to evaluatethe progress made in respect of the intervention in the Municipality.
36.1.7 The Independent Electoral Commission (IEC), should develop an implementation plan on by-election, taking into account the Presidential Statement made on 15 March 2020, on measures to combat COVID-19, in order for the IEC to facilitate free and fair elections.
Report to be considered.
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