ATC130910: Report of the Select Committee on Cooperative Governance and Traditional Affairs on the Oversight visit to Emalahleni Local Municipality – dated 10 September 2013

REPORT OF THE SELECT COMMITTEE ON COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS ON THE OVERSIGHT VISIT TO EMALAHLENI LOCAL MUNICIPALITY – DATED 10 SEPTEMBER 2013

1. Background

1.1 On the 26 ^th April 2013, the MEC for Cooperative Governance and Traditional Affairs in Mpumalanga Province, tabled to the Office of the Chairperson of the National Council of Provinces (NCOP), a notice of intervention in Emalahleni Local Municipality in terms of section 139(1 )( b) of the Constitution.

1.2 Subsequent to the tabling, the Chairperson of the National Council of Provinces referred the notice of intervention in terms of Rule 101 to the Select Committee on Cooperative Governance and Traditional Affairs for consideration and report. On the 14 ^th August 2013, the Committee conducted an oversight visit to the Emalahleni Local Municipality.

2. Purpose and Objectives of the Oversight Visit

2.1 The purpose and objectives 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 intervention in terms of section 139(1 )( b) of the Constitution.

3. Composition of the Delegation

3.1 The delegation of the Committee was composed of the following Members of Parliament and Officials: Hon MH Mokgobi , Limpopo (ANC); Hon AG Matila , Gauteng (ANC); Hon LPM Nzimande, KwaZulu-Natal (ANC); Hon B Nesi , Eastern Cape (ANC); Hon TMH Mofokeng , Free State (ANC); Hon MV Manzini , Mpumalanga (DA); Hon J Bekker, Western Cape (DA); Hon MW Makhubela, Limpopo (COPE); Hon JJ Gunda, Northern Cape (ID); Hon MMM Zulu, KwaZulu-Natal (IFP); Mr NA Mfuku , Content Adviser (Committee Section); Mr MT Manele , Committee Secretary (Committee Section); Mr BM Mahlangeni , Committee Researcher (Research Unit); Mr MC Mbebe , Procedural Officer (NCOP) and Mr N Mangweni , Administration Assistant (Committee Section).

4. General Overview of Oversight Visit to Emalahleni Local Municipality

4.1 On the 14 ^th August 2013, the delegation of the Select Committee on Cooperative Governance and Traditional Affairs, had interaction and a consultative meeting with the internal and external stakeholders of the municipality. The stakeholders the delegation interacted with included the Mayor; Speaker, the Chief Whip, the Administrator and representatives of the Business Sector, Organised Labour and Ward Committee Members.

5. Progress Report on the Turn-Around Strategy in Emalahleni Local Municipality

5.1 The Administrator, appointed by the Provincial Department of Cooperative Governance and Traditional Affairs, briefed the delegation of the Committee on the Turn-around Strategy developed for the Municipality as a result of the intervention.

5.2 The Administrator was appointed on 23 ^rd April 2013, to assume administrative functions on behalf of the Provincial Executive Council (PEC) which includes all functions of the Municipal Manager as stipulated in section 55 of the Local Government: Municipal Systems Act, 2000 (Act No 32 of 2000), and functions of the Executive Mayor as contained in section 56(2) of the Local Government: Municipal Structures Act, 1998 (Act No.117 of 1998).

5.3 The major municipal functions assigned to the Administrators included the assessment of the municipal financial and service delivery state; introduction of prudent financial management system; preparing a recovery plan; recommending appropriate changes to the municipal’s budget and revenues and assessing all contractual obligations of the Municipality by negotiating contractual payments, scope and agreed schedule with service providers.

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5.4 The presentation on the progress in respect of the Turn-around Strategy focused on stabilizing the Municipality; restoring relations with communities; improved service delivery and asset maintenance; establishing financial stability and establishing political stability.

6. Stabilizing the Municipality

6.1 The Municipality has made progress in establishing Local Labour Forum; initiating investigations into allegations of corruption; signing agreements with workers of Extended Public Works Programme; developing performance management systems; launching the head of department forum; establishing section 80 committees and reviewing policies and procedures.

7. Restoring Relations with Communities

7.1 The Municipality conducted public hearing as a form of administrative consultation with the communities; it renewed its relationship with the press; published municipal challenges and programmes to the community; engaged communities groups (on planning forum, mining sector and informal settlement).

8. Improved Service Delivery and Asset Maintenance

8.1 The Municipality has made progress in stabilizing and maintaining the provision of potable water; developing sanitation strategy; resolving waste removal problems; repairing street lights; developing electricity improvement plans; changing the management of vehicle fleet and developing the Municipal Clean-up Programme in collaboration and participation with the members of the communities.

9. Financial Stability

9.1 The Municipality has made progress in adopting a Financial Turn-around Strategy; developing audit plan; strengthening financial controls over supply chain; improving cash flows and debtors management; signing agreements with Eskom; employing financial experts; addressing illegal connections of electricity and approving new tariff structure.

10. Political Stability

10.1 The Municipality has facilitated and completed the processes of establishing section 80 committees; ensuring that the Mayor performs mayoral duties and; utilizing current structures and strengthening ownership of interventions as well as maintaining working relationship between administration and the Council.

11. Opinions of the Municipal Internal and External Stakeholders on the Intervention

11.1 During the period of the oversight visit, the delegation of the Committee interacted and solicited opinions of the internal and external stakeholders of the Municipality on the intervention. The stakeholders included the South African Local Government Association; Ward Committee Members; Organized Labour and the representative of the Business Sector.

12. Opinion of the South African Local Government Association

12.1 The representative of the South African Local Government Association submitted their support for intervening in the Municipality. The Association further welcomed the progress made in respect of the development of the Municipal Turn-around Strategy.

13. Opinion of the Ward Committee Members

13.1 Members of the Ward Committees generally welcomed the intervention in the Municipality, and the progress made in terms of the development of the Turn-around Strategy. They further raised concerns related to the short period of the intervention.

14. Opinion of Organised labour

14.1 The representations of South African Municipal Workers Union (SAMWU) and Independent Municipal and Allied Trade Union (IMATU) expressed their support for the intervention and the progress made since the appointment of the Administrator.

14.2 Some of the concerns raised by the representatives of both Unions, which in their opinion would require the assistance of the Department of Cooperative Governance and Traditional Affairs, related to the short period of intervention. They requested the period of intervention to be extended.

15. General Observations and Committee Opinion

15.1 The Committee has observed that the intervention of the Department of Cooperative Governance and Traditional Affairs, in the affairs of the Municipality has brought about political and administrative stability.

15.2 The Committee has further observed that, the appointment of the Administrator in the Municipality has also contributed to significant progress, more especially with regard to the development and implementation of the Municipal Turn- around Strategy.

15.3 The Committee has through interaction with both the internal and external stakeholders noted the progress made by the Municipality more especially on stabilizing the Municipality; restoring relations with communities; improving service delivery and asset maintenance; establishing financial stability and restoring political stability.

15.4 The Committee welcomed the progress made by the Municipality in conducting on supply chain management, developing manuals on supply chain management, expenditure, internal controls and procedures.

15.5 Furthermore, the Committee also welcomed the progress made by the Municipality in facilitating and completing the processes of adopting the Turn-around Strategy with the support of all political parties; establishing section 80 committees; ensuring that the Mayor performs mayoral duties and utilizing current structures and strengthening ownership of interventions, as well as maintaining working relationship between administration and the Council.

16. Committee Recommendations

16.1 Having conducted oversight visits to Emalahleni Local Municipality in terms of Section 139 (1) (b) of the 1996 Constitution, the Committee recommends to the House for approval as follows:

16.1.1 The House approves the intervention in Emalahleni Local Municipality in terms of section 139(1 )( b) of the Constitution, for a period of six months after the adoption of this report.

16.1.2 The Administrator, in collaboration with the Provincial Department of Cooperative Governance and Traditional Affairs and the South African Local Government Association, should provide proper training to Ward Committee Members and Councillors, in accordance with the Local Government: Municipal Structures Act, Municipal System Act and the Municipal Finance Management Act.

16.1.3 The Provincial Department of Cooperative Governance and Traditional Affairs should fast track all matters related to the forensic investigation on corruption and misuse of municipal cars and table the findings to the NCOP and the Mpumalanga Provincial Legislature.

16.1.4 The Administrator should fast track the process of appointing the Municipal Manager.

16.1.5 The Speaker and the Mayor should perform their duties in accordance to the provisions of the Local Government: Municipal Systems Act, 2000 (Act No 32 of 2000) and the Local Government: Municipal Structures Act, 1998 (Act No. 117 of 1998).

16.1.6 The Leadership of the Municipal Organized Labour (S outh African Municipal Workers Union and the Independent Municipal and Allied Trade Union) should encourage and promote discipline within their members in terms of the municipal code of conduct and existing policies.

Report to be considered.