ATC130507: Report of the Select Committee on Cooperative Governance and Traditional Affairs on the Oversight visit to Imbabazane Local Municipality – dated 7 May 2013
REPORT OF THE SELECT COMMITTEE ON COOPERATIVE
GOVERNANCE AND TRADITIONAL AFFAIRS ON THE OVERSIGHT VISIT TO
February 2013, the MEC for Cooperative Governance and
Traditional Affairs in
12 February 2013, the Committee resolved to conduct an oversight visit to
Local Municipality on the 8 March 2013.The main 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 placement of the Municipality in terms of section 139(1
b) of the Constitution.
of the Oversight Visit to
March 2013, the delegation of the Committee had interaction and
consultative meeting with the internal and external stakeholders of the Municipality.
The stakeholders the delegation interacted with included the Mayor, Speaker,
Chief Whip, Administrator and representatives of the Business Sector, Organised
Labour and Ward Committee members.
Department of Cooperative Governance and Traditional Affairs
On the 23
January 2013, the Executive Council resolved to intervene in terms of section
b) of the Constitution in
On 14 June
2012, a request for a meeting was submitted by the National Freedom Party (NFP)
Freedom Party (IFP), together with a
motion of no confidence against the Mayor and the Speaker. The Speaker and the Municipal
Manager could not agree on the order of the items on the agenda, hence the
notice of meeting was not signed by the Speaker.
Manager proceeded to sign the notice calling for the meeting to be convened on the
20 June 2012, and circulated such notice to the councillors. This happened despite
the advice of the Provincial Department. However, certain councillors proceeded
with the meeting. The Department instituted an urgent High Court proceeding for
orders declaring that the Municipal Manager contract had terminated, that his
continued employment was null and void, and further declaring the resolution
taken on 20 June 2012 to be invalid.
Representative (Administrator) was appointed and introduced to the Council on the
31 January 2013. The appointed Ministerial Representative, in undertaking the
functions assumed by the Provincial Executive Council must, inter alia:
the municipal council
meets regularly and in line with section 18(2) of the Local Government:
Municipal Structures Act (Act 117 of 1998) or as often as it is necessary to
conduct council business in keeping with councils standing Rules and Orders
and all applicable legislation, particularly this Act.
Councils standing rules, orders, roles and responsibility of Office
Bearers, Municipal Manager and any other senior officials in order to ensure
good governance and legality at all council meetings.
and assess the adherence to policy, principles and frameworks applicable to
council and the administration.
challenges in respect of adherence to such policy,
principles and frameworks by reviewing; amending and ensuring adoption and
all decisions of the municipal council and its committees
prior to implementation.
all decisions taken by Municipal Manager and managers directly
accountable to the Municipal Manager in terms of the delegated or original
any decision of the municipal council, its committees and that of the Municipal
Manager or managers directly accountable to the Municipal Manager for the
purpose of ensuring legality.
implementation of council resolution by the administration and
implement a system to control and approve all expenditure.
all governance systems and procedures including
appropriate councillor and oversight mechanisms.
the organisational structure and implement financial systems, policies
turn-around strategy for the Municipality including a strategy to promote good
Municipal Turn-Around Strategy
Administer had developed a municipal turn-around strategy in order to stabilize
the municipality. The strategy focused on key performance areas such as
financial viability and management; good governance and public participation;
institutional development and transformation and; local economic development
and development planning
Briefing by the Provincial Department of Cooperative Governance and
April 2013, the Provincial Department briefed the Committee on
the justification for intervention and the progress made since the appointment
of the Ministerial Representative with regard to the implementation of
municipal recovery plan and turn-around strategy. The progress report focused
on key performance areas and measurable outcomes related to financial
viability; supply chain management; financial reporting; expenditure
management; planning and budgeting; financial control; governance and
Currently there is a review on the
Municipality financial viability, in order to implement credit control policy.
Monthly billing as per government property rates which is in line with policy
was being implemented.
Supply Chain Management
The Supply Chain Management policy (SCM) of
the Municipality was reviewed, and will be adopted by the Council. The development
of SCM performance Management template was in progress. Consolidated deviations
register has been developed and will be tabled in the next Council meeting for
adoption. The development of procurement plan was in progress.
On financial reporting,
all SCM decisions were in a process of review and in progress, the list of all
tenders awarded has been compiled. Preparation and distribution/submission of
section 71 reports have been compiled and submitted as required in terms of the
Municipal Finance Management Act (MFMA), Act 56 of 2003,
and will be tabled in next Council meeting.
Lastly, the development and monitoring of cash flow projection are due to take
Expenditure Management and Financial Control
The adjustment budget has
been prepared and adopted by the Council. Equally, the development and
implementation of the financial controls matrix, the tracking tool developed by
Provincial Treasury has been customised and adapted to the Municipality.
Planning and Budgeting
The annual budget for the 2013/14 financial
year was prepared and tabled at the Council meeting held on the 29 March 2013.
The budget process is at the public participation stage.
The Audit Committee has been established
and held its first meeting on the 09 April 2013.
A system of reporting from MANCO, Portfolio
Committees, EXCO and Council was established. The system is to have strategic
objective and PMS to facilitate the oversight role of the Council. The dates
for Portfolio Committees have been set.
The developing of the system of
delegations in terms of section 59 of the Municipal Systems Act has not started
yet. In terms of reviewing the framework of roles and responsibilities in terms
of section 53 of the Act, it was not started.
The register of all decisions taken between 20 June 2012 and February
2013 has been compiled for reviewing of any decisions of the municipal council,
its committees and that of the Municipal Manager or managers directly
accountable to Municipal Manager for the purpose of ensuring legality.
The appointment of the Municipal Manager
was declared unlawful and has since vacated the position. The expenditure on
the municipal managers salary was irregular and will be recovered from all
those who caused it. The Council was not cooperative hence a requests was
granted to extend the scope of the intervention to include functions listed
under section 54A and 56 of the Municipal Systems Act. The Acting Municipal Manager
was appointed on the 12 April 2013.
All section 56 managers appointed in the
period between 20 June 2012 and January 2013 were placed on special unpaid
leave to avoid the perpetuation of illegality. They have since been informed of
their unlawful appointments and vacated their positions. Twenty five (25)
employees who were appointed by the Municipal Manager, operating illegally have
been informed of their unlawful appointments and have since vacated their
positions. They have referred the matter to the Bargaining Council for
The conciliation was due to take place on the
April 2013. The Acting CFO and Director: Corporate Services
have been appointed on a three months contract. The Council was informed of the
appointments at the meeting held on 22 April 2013 and that the positions
including that of the Director: Technical Services will be advertised. The
draft organogram has been developed. Consultation with the unions will commence
prior to the adoption by the Council together with the annual budget for
2013/14 by the end of May 2013.
Development and Development Planning
The development of the Local Economic
Development Strategy has not started, including the reviewing of the IDP key
performance indicators. The alignment of
Organisational Performance scorecard has not started, including the development
and implementing the reporting mechanisms of the performance information.
Municipal and Allied Trade Union (IMATU)
business sector raised concerns with regard to the lack of consultation on
matters related to the IDP, budget and local economic development. The sector
further raised concerns with regard to service delivery challenges facing the Municipality.
observations and Committee Opinion
has observed that the placing of the Municipality under section 139(1
b) of the Constitution, and the appointment of the Ministerial
Representative has been a good
corrective measure to assist the Municipality in dealing with the service
delivery and administrative challenges facing the Municipality.
Committee has further observed the progress made by the Ministerial
Representative with regard to the development of the municipal turn-around
strategy, that paid particular focus on key performance areas on supply chain
management; financial reporting; expenditure management; planning and
budgeting; financial control; governance and institutional development.
is of the opinion that political parties within the Municipality need to put
aside their political differences, so as to ensure stability within the Municipality
and the implementation of the municipal turn-around strategy developed by the Ministerial
Representative under the leadership of the Provincial Department of Cooperative
Governance and Traditional Affairs.
conducted the oversight visit to the Municipality and interacted with the
internal and external stakeholders, the Committee recommends as follows:
approves the intervention in terms of section 139(1
of the Constitution in
18.1.2 The Provincial Department of the Cooperative
Governance and Traditional Affairs should submit quarterly progress reports to
the Provincial Legislature and the NCOP.
18.1.3 The Provincial Department of Cooperative
Governance and Traditional Affairs to conduct capacity building programme
focusing on responsibilities, roles and functions of the politicians and
officials within the Municipality.
Report to be considered.
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