ATC120516: Report on The 2012/13 Annual Performance Plans & Budget Vote of the Department of Co-Operative Governance (Dcog) & The Department of Traditional Affairs (Dta) – 16 May 2012

NCOP Economic and Business Development

APPLICATION FOR DAILY ALLOWANCE

REPORT OF THE SELECT COMMITTEE ON CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS ON THE 2012/13 ANNUAL PERFORMANCE PLANS AND BUDGET VOTE OF THE DEPARTMENT OF CO-OPERATIVE GOVERNANCE (DCoG) AND THE DEPARTMENT OF TRADITIONAL AFFAIRS (DTA) – 16 MAY 2012

 

Having considered the Annual performance Plans and Budget Vote of DCoG and the DTA, the Committee reports as follows:

 

1. Introduction

 

1.1 On the 24 April 2012, the Committee met with both Departments to consider briefings on their annual performance plans and budget vote for the 2012/13 financial year. This was done as part of the Committee’s role in conducting parliamentary oversight and ensuring executive accountability, especially with regards to annual performance plans, policy priorities and budget allocations to departmental programmes and public entities.

 

2. Background

 

2.1 Those that appeared before the Committee for the briefing included Mr Sigidi Muthotho (Acting Director-General), Ms Keneilwe Sebego (Chief Operations Officer), Mr Mawethu Mtyhuda (Chief Financial Officer) and Ms Reshoketswe (Senior Manager in the Office of the Acting Director-General).

 

3. Government’s Outcomes-Based Performance Outlook

 

3.1 The mandate of the DCoG is to improve coordination across the three spheres of Government and to make sure that provinces and municipalities carry out their service delivery and development functions effectively in support of the developmental state. The annual performance plans and budget vote of the Ministry are submitted and tabled by the Committee, in order to ensure that its organisational design and resources are aligned, for it to be strategically positioned, given the dynamic environment. In terms of the government’s outcomes based performance monitoring system, the Department is responsible for achieving a responsive, accountable, effective and efficient local government system (outcome 9).

 

4. Presentation on the Annual Performance Plans and Budget Vote of CoGTA & DTA

 

4.1 The Chief Operation Officer presented the Departmental Annual Performance Plans and Budget Vote. The presentation focused on the strategic direction and approach; departmental goals and strategic objectives; overview of financial allocation; DCoG and DTA specific activities in terms of their programmes.

 

5. Strategic Direction and Approach

 

5.1 The Department reported firstly that for the period of 2012/13 resources will be allocated towards fast-tracking the implementation of the collective decision to enhance the functioning of municipalities and to locate the role of traditional institutions within the broader agenda of Government. Secondly, the Department reported that it will provide a much focused support to 105 municipalities which are within the 23 district municipalities, indentified by the Cabinet as well as their corresponding traditional communities.

 

6. Strategic Goals and Related Objectives (DCoG)

 

6.1 The Department tabled a number of strategic goals and related strategic objectives. The first strategic goal, deals with a policy platform that provides a differentiated approach to municipal financial planning. The related strategic objectives will include improvement of the system of disaster risk management; ensure the availability of the policy framework for differentiation; facilitate the development of credible and simplified IDPs (Integrated Development Plans), and the inculcation of the culture of disaster risk reduction and resilience.

 

6.2 The second strategic goal deals with improved access to basic services . The related strategic objectives includes ensuring increased access to basic electricity, refuse removal, water and sanitation, establishment of partnership and mechanisms to improve services, and supporting sector departments and municipalities to improve access to basic services.

 

6.3 The third strategic goal is about the implementation of the community work programme . The related strategic objective comprise of ensuring the creation of 332 500 work opportunities by 2014.

 

6.4 The fourth strategic goal deals with local democracy through a refined ward committee model . The related strategic objective will contain the review and strengthening of a legislative framework for ward committees and community participation.

 

6.5 The fifth strategic goal promotes the enhancement of administrative and financial capabilities of municipalities . The related strategic objectives comprise the strengthening of anti-corruption capabilities of municipalities; implementing initiatives to improve financial management and expenditure; improving the audit outcomes of municipalities and provinces; and reviewing and amending municipal policy and legislation to improve institutional and administrative systems.

 

6.6 The sixth strategic goal is about strengthening cooperative governance and providing oversight and support to provincial and local government . The related strategic objectives will include the implementation of the new policy and legislation to strengthen cooperative governance; review local government policy and legislation; establish an integrated information and communication management system; coordination of capacity building; ensure integrated planning and reporting.

 

6.7 The seventh strategic goal deals with improving the coordination of interventions impacting on local government. The related strategic objectives will include the provision of focused support to municipalities; building clean, effective, responsive and accountable local government; promote sustainable development principles and practices in local government.

 

6.8 The eighth strategic goal is on facilitation of economic development at local level . The related strategic objective will include supporting job creation at local level through a system supportive of private sector sustainable employment creation.

 

7. Departmental Programme Specific Activities

 

7.1 The Department tabled programme specific activities to the Committee. These included activities of administration; policy, research and knowledge management; governance and intergovernmental relations; national disaster management centre; provincial and municipal government support and infrastructure and economic development.

 

7.2 Administration

7.2.1 The major goals under this programme are to strengthen the capacity of the Department to deliver on its mandate, as well as to improve the coordination of interventions impacting on local government. The main activities presented in relation to Administration included achieving clean audit opinion; implementing the HR plan; establishing functional financial governance structure; supporting provinces and municipalities with communication and monitoring and evaluation plans; and establishing a solid platform that will enable focused ICT support to municipalities.

 

7.3 Policy, Research and Knowledge Management

7.3.1 The goal of this programme is to strengthen the capacity and capability of the Department to deliver on its mandate. The main activities presented in relation to the above-mentioned programme includes supporting ICT development at municipal level; developing knowledge management strategy and developing policy papers in support of branch commissioned research.

 

7.4 Governance and Intergovernmental Relations

7.4.1 Under this programme, the Department intends to have a policy platform that provides for a differentiated approach to municipal financing, planning and support to be implemented. The main activities presented in relation to the above-mentioned programme includes developing a white paper on cooperative governance; implementing the Intergovernmental Relations Framework Act (Act 13 of 2005); drafting a bill on national monitoring, support and intervention in provinces and municipalities; drafting a bill on the refined legislative framework for ward committees and community participation.

 

7.5 National Disaster Management Centre

7.5.1 The aim under this programme is to implement a differentiated approach to municipal financing, planning and support in order to improve cooperative governance across the three spheres of government. The main activities presented in relation to this programme includes amending the Disaster Management Act (Act 57 of 2002); revising the fire services legislation; developing an Integrated National Disaster Risk Management Education and Training Framework; and developing a Macro National Indicative Risk and Vulnerability Profile for floods, fires, drought and seismic activity .

 

 

 

7.6 Provincial Municipal Government Support

7.6.1 This programme aims to improve the coordination of interventions impacting on local government, as well as ensuring administrative and financial capabilities of municipalities are enhanced. The main activities presented includes an assessment report on the performance of departmental public entities; implementing training programmes for councillor development; monitoring the filling of vacancies in municipalities; supporting municipalities to develop technical skills; supporting municipalities to develop and implement recruitment and retention strategies and developing regulations setting uniform standards for all municipal employees.

 

7.7 Infrastructure and Economic Development

7.7.1 The goal is to facilitate economic development and job creation at local level, and improve access to basic services. The main activities presented in relation to the above-mentioned programme include creating work opportunities through the community works programme; forming strategic partnership to support the development of cooperatives; supporting business development forums in district municipalities; implementing and monitoring the number of signed memorandums of understanding and supporting the district rural municipalities to improve their Municipal Infrastructure Grant (MIG) non-financial performance.

 

8. Strategic Goals and Objectives of the DTA

 

8.1 The Chief Operation Officer presented the strategic goals, objectives and programme activities of the DTA.

 

9. Strategic Goals and Related Objectives

 

9.1 The main strategic goals of the DTA centres around the empowerment of traditional communities; effective governance systems for traditional affairs; sustainable partnerships and collaboration for service delivery; an effective Department and the transformation of traditional authorities.

 

9.2 The related strategic objectives presented included reviewing and developing the national support programme for traditional communities; promoting the role of traditional affairs and the institution of traditional leadership including the Khoi-San leadership; supporting entities to ensure that they play a central role towards development and service delivery; enhancing alignment and standardization in the regulatory framework for traditional affairs across provinces and municipalities and enhancing knowledge management with the traditional affairs.

 

10. Departmental Programme Activities

 

10.1 In support of the strategic goals and objectives, specific activities per departmental programmes were presented. These included activities related to programmes such as research, policy and legislation; institutional support and coordination and transforming the traditional authorities.

 

10.2 Research, Policy and Legislation

 

10.2.1 The main activities presented in relation to the above-mentioned programme included gazetting on the formula and roles of Kinship/Queenship Councils; approving the policy on male initiation; developing a number of socio-economic provincial profiles on Traditional Affairs; developing a compliance report on the implementation of the Traditional Leadership Governance Framework Act (Act 41 of 2003) and the publication of the National Traditional Affairs Bill.

 

10.3 Institutional Support and Coordination

 

10.3.1 The main activities presented in relation to the above-mentioned programme included implementation of capacity building plan; reporting on the implementation of assessment findings; developing and implementing traditional affairs sector strategy

 

10.4 Transforming Traditional Authorities

 

10.4.1 The main activities presented in relation to the above-mentioned programme included the restoration of the dignity of the traditional and Khoisan leaders and communities; improving governance capacity and capabilities. A breakdown on the budget’s economic classification with respect to the departmental programmes is listed below:

 

11. Budget and Expenditure Trends Analysis

 

11.1 The Department’s budget increased from R33.4 billion in 2008/09 to R48.2 billion in 2011/12, at an average annual rate of 13 per cent, mainly due to increased expenditure in the Governance and Intergovernmental Relations and Infrastructure and Economic Development programmes. Spending in the Governance and Intergovernmental Relations programme, which transfer the local government equitable share, increased from R25.7 billion in 2008/09 to R34.5 billion in 2011/12, at an average annual rate of 10.4 per cent. The increase is due to the additional allocation for the equitable share of R6.7 billion in 2010/11.

 

11.2 The spending focus over the medium term will be on making transfers through the local government equitable share to supplement municipal revenue for funding the institutional capacity of weaker municipalities and transferring the municipal infrastructure grant, which is meant for the eradication of backlogs in basic services infrastructure within municipalities, with the strategic objective to eradicate backlogs in basic services, supplement revenue and support weaker municipalities.(See table below for full allocations and total budget for the 2012 MTEF).

 

Cooperative Governance and Traditional Affairs
Programme	Audited outcome			Adjusted appropriation	Revised estimate	Medium-term expenditure estimate
R thousand	2008/09	2009/10	2010/11	2011/12		2012/13	2013/14	2014/15
Administration	143,271	179,330	169,532	205,369	205,369	201,402	212,791	225,483
Policy, Research and Knowledge Management	40,851	44,949	35,433	41,506	41,506	46,071	48,748	51,981
Governance and Intergovernmental Relations	25,656,860	23,936,814	30,663,678	34,476,567	33,244,205	37,981,926	40,694,559	43,757,950
Disaster Response Management	82,075	122,981	283,092	816,232	41,232	555,225	586,927	622,073
Provincial and Municipal Government Systems	226,441	209,569	244,499	249,861	249,861	284,726	297,815	314,693
Infrastructure and Economic Development	7,180,194	9,111,748	10,363,377	12,331,358	12,311,358	15,544,190	16,858,113	18,737,285
Traditional Affairs	56,293	56,243	61,817	83,769	83,769	102,050	105,106	112,419
Total	33,385,985	33,661,634	41,821,428	48,204,662	46,177,300	54,715,590	58,804,059	63,821,884
Change to 2011 Budget estimate				271,082	(1,756,280)	872,760	1,683,240	3,273,816

(Source: National Treasury Estimates of National Expenditure 2012)

 

12. Committee Observation and Concerns

 

12.1 The Committee suggested to the Department on the possibility of providing guidelines with regard to the establishment and maintenance of credible indigent registers by municipalities, using useful lessons observed from Amahlathi Local Municipality in the Eastern Cape Province .

 

12.2 The continued to use of consultants in the Department, and more specifically in the Community Works Programme remains a concern for the Committee.

 

12.3 The Committee was concerned about the plight of the Khoisan people, and their struggle to achieve recognition as traditional leaders and communities. They asked for details of legislative plans to address this challenge.

 

12.4 The Committee expressed concerns on the Department’s performance in the field of disaster management, particularly in respect of indigent communities who settled in flood plains and were vulnerable to seasonal rainfall. There is a need for close liaison with municipalities so that early warning systems were put in place.

 

12.5 The Committee noted that the Department has failed to implement the previous recommendations, more especially with regard to tabling of quarterly reports in respect to departmental strategic objectives and priorities as requested.

 

12.6 The Committee further observed that the Department in its presentation of its strategic goals, related objectives and programme activities did not included and indicated performance indicators, measurable outcomes and target dates in their annual performance plan.

 

 

13. Recommendations

 

 

13.1 In the interest of co-operative governance, the Committee recommends that the Minister of Co-operative Governance and Traditional Affairs should ensure that the Department of Co-operative Governance and Traditional Affairs should :

 

13.1.1 provide a report on the consultation process with regard to the restoration of the dignity of the traditional and Khoisan leaders and communities;

13.1.2 revitalise the Disaster Management Unit to focus on risk management and the prevention of natural disasters proactively; and

13.1.3 table quarterly reports to the National Council of Provinces on the implementation of the Department’s strategic policy priority areas, as well as challenges encountered.

 

13.2 The Committee further recommends that the NCOP should approve Budget Vote 3 of the Department of Co-operative Governance and Traditional Affairs.

 

Report to be considered.