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

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

1. Background

1.1 On the 8 ^th April 2013, the MEC of KwaZulu-Natal Province tabled to the Office of the Chairperson of the National Council of Provinces (NCOP), a notice of intervention in Abaqulusi Local Municipality in terms of section 139(1 )( b) of the Constitution. Subsequent to the tabling, the Chairperson of the NCOP referred the notice of intervention in terms of Rule 101, to the Select Committee on Cooperative Governance and Traditional Affairs, for consideration and reporting. On the 16 ^th August 2013, the Committee then conducted an oversight visit to the Abaqulusi Local Municipality.

2. Purpose and Objectives of the Oversight Visit

2.1 The purpose and 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 opinions with regard to the intervention in the Municipality 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 Abaqulusi Local Municipality

4.1 On the 16 ^th August 2013, the delegation of the Select Committee on Cooperative Governance and Traditional Affairs had interaction and consultative meeting with the internal and external stakeholders of the Municipality. The stakeholders the delegation interacted with included the Mayor; the Speaker, the Chief Whip, the Administrator and representatives of the Business Sector and Organised Labour and Ward Committee members.

5. Progress Report on the Turn-Around Strategy of Abaqulusi Local Municipality

5.1 The Administrator, as 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 in terms of section 139(1 )( b) of the Constitution.

5.2 The presentation focused on the Institutional Development and Organisational Development; Municipal Financial Viability and Management; Local Economic Development; Good Governance and Public Participation and Spatial Development Planning.

6. Organisational Development and Transformation

6.1 The Municipality has adopted a new organogram, facilitated in terms of the intervention. The process was currently underway in order to conclude the placement of employees in the current structure. It has surfaced that when the Municipality last placed employees in 2010, the process was never concluded. All positions of section 56 Managers have since been advertised.

7. Municipal Financial Viability and Management

7.1 The Municipality has improved in ensuring the decrease of unauthorised, irregular and wasteful expenditures. This process started with increasing capacity in supply chain management. Through the intervention, the Municipality has requested support in drafting the processes and procedures for approving expenditure. Through this approach, it envisaged in putting to rest the negligence in the expenditure .

7.2 The Municipality has put in place financial planning processes in order to ensure that quality financial statements are produced and submitted to the Internal Audit Committee, Municipal Public Accounts Committee (MPAC) and the Council before final submission to the Auditor-General by 31 ^st August 2013.

8. Local Economic Development (LED)

8.1 Through the intervention, the Municipality has requested support in drafting the LED Plan which would contain both the urban and rural economic development strategies. Secondly, the Municipality has drafted a funding proposal for a feasibility study on establishing a special purpose vehicle whose responsibility would be to implement the LED Plan.

9. Good Governance and Public Participation

9.1 The Municipality has made progress in drafting a calendar for functional Portfolio Committees; Executive Council and MPAC. The primary of objectives of drafting such a calendar, has been to strengthen the oversight role of Council over administration, to ensure that Portfolio Committees receive monthly performance reports to be recommended to the Council .

9.2 The Municipality has written requests for the development of Ward Committees, particularly in community based planning and performance monitoring. The Municipality has also made progress in establishing its Public Participation Charter, which would be integrated with broader marketing communication strategy to be funded by the Department of Cooperative Governance and Traditional Affairs.

10. Spatial Development Planning

10.1 The Municipality has received funding from the Department of Cooperative Governance and Traditional Affairs to develop and implement its spatial development planning. A business plan for funding has also been completed and submitted to the Department.

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 South African Local Government Association; Ward Committee Members; Organized Labour and the representative of Business Sector.

12. Opinion of the South African Local Government Association

12.1 The representative of the SALGA submitted their support for intervening in the Municipality in terms of section 139(1 )( b) of the Constitution. The Association further welcomed the progress made in respect of the development of Municipal Turn-around Strategy. The Association further expressed concerned about the lack of local economic development within the community, and the requirement for community members to pay an amount of R120 for death certificates.

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 and Recovery Plan. They further raised concerns related to political manipulation in some of the wards; non–support of the Department of Health on the projects within the wards and the lack of capacity building for Ward Committee Members.

14. Opinion of Organised labour

14.1 The representations of South African Municipal Workers Union (SAMWU) and the Independent Municipal and Allied Trade Union (IMATU) expressed their support for the intervention and the progress made since the appointment of the administrator, more especially with regard to Municipal Turn-around Strategy.

14.2 Some of the concerns raised by the representatives of both Unions, which in their opinion would require the assistance of the Administrator, included the low staff morale; political interference in the administration; non-functioning of the Local Labour Forum; non-filling of vacant posts and the non-invitation and participation in panels for short-listing of candidates for internal recruitment and appointments.

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 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 Municipal Turn-around Strategy and Recovery Plan.

15.3 The Committee, through interaction with both the internal and external stakeholders, has noted the progress made by the Municipality more especially on the institutional development and organisational transformation; municipal financial viability and management; local economic development; good governance and public participation and spatial development planning.

15.4 The Committee is of the opinion that the implementation of the Turn-around Strategy and Recovery Plan would contribute to the proper functioning of the Council, Portfolio Committees, MPAC, Local Labour Forum and ultimately result to political and administrative stability.

16. Committee Recommendations

16.1 Having conducted the oversight visit to Abaqulusi Local Municipality in terms of section 139(1 )( b) of the Constitution, the Committee recommends to the House as follows:

16.1.1 That the House approves the intervention in terms of section 139(1 )( b) in Abaqulusi Local Municipality, 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 SALGA, should provide proper training to Ward Committee Members and Councillors in accordance with the Local Government: Municipal Structures Act, Municipal Systems 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 in the Municipality, and table the findings to the NCOP and the KwaZulu-Natal Provincial Legislature.

Report to be considered.