Your partner in service delivery and development

1. PRESENTATION TO THE SELECT COMMITTEE ON COGTA LOCAL GOVERNMENT: MUNICIPAL SYSTEMS AMENDMENT BILL, 2010 13 April 2011 Your partner in service delivery and development

2. Background Challenges Objects of the Bill End 1. OVERVIEW Your partner in service delivery and development

3. 2. BACKGROUND The Constitution The Constitution places an obligation on the national government and provincial government – by legislative and other measures, to support and strengthen the capacity of municipalities (s154(1); and to see to the effective performance of municipalities of their functions section 155(7). Your partner in service delivery and development

4. 2. BACKGROUND (Cont) The Municipal Systems Act – provides a legal framework for local public administration (Chapter 7) enjoins the Minister to regulate uniform standards for municipal staff systems and procedures (s72) Your partner in service delivery and development

5. 2. BACKGROUND (Cont) local public administration must be governed by the following democratic values and principles (s50): A high standard of professional ethics Efficient, economic and effective use of resources People’s needs must be responded to Public administration must be accountable Transparency must be fostered Your partner in service delivery and development

6. 3. CHALLENGES All 283 municipalities develop their own systems and procedures for municipal managers and managers directly accountable to municipal managers that are incoherent These systems and procedures – have induced disparate HR practices (e.g. remuneration, conditions of service, other macro benefits, etc.) that – are not consistent with the values and principles governing local public administration are inconsistent and hinder the mobility of staff within the sector Your partner in service delivery and development

7. 3. CHALLENGES (Cont) undermine the ability of municipalities to organise their administration and employ personnel necessary for the effective performance of their functions opened floodgates for the appointment of ill-qualified personnel in leadership positions gave rise to a number of poorly governed and dysfunctional municipalities led to the collapse of the rule of law in some municipalities due to corruption, patronage, etc.) undermine efforts to entrench a culture of improved performance and accountability Your partner in service delivery and development

8. 3. CHALLENGES (Cont.) blurs political/ administrative career paths with political/ administrative infighting coming in the way of service delivery have a created a situation where convicted fraudsters and municipal staff dismissed for corruption and financial mismanagement freely enter and exit local government at ease attracted legal disputes from some municipalities with money intended for service delivery spent on defending labour disputes Your partner in service delivery and development

9. 4. MAIN OBJECTS OF THE BILL To address all these challenges, the Municipal Systems Amendment Bill (the Bill) was developed and introduced into Parliament in July 2010. The main objects of the Bill are to - Clause 2&3 (s54A&56): Appointment of municipal managers and managers directly accountable to municipal managers professionalise local government to ensure that municipal administrations are staffed by appropriately qualified and competent persons by providing for – Your partner in service delivery and development

10. 4. MAIN OBJECTS OF THE BILL (Cont.) provide appointment procedures and competency criteria for the appointment of municipal managers and managers directly accountable to municipal managers enforce the appointment requirements by fostering mandatory oversight reporting to the MEC/Minister provide for the consequences/ annulment of appointments made in contravention of this Act determine timeframes within which performance agreements must be signed municipal managers and managers directly accountable to them Your partner in service delivery and development

11. 4. MAIN OBJECTS OF THE BILL (Cont.) Clause 5 (s56A): Political rights of municipal managers and managers directly accountable to municipal managers prohibit municipal managers and managers reporting to them from holding political office in a political party managers Your partner in service delivery and development

12. 4. MAIN OBJECTS OF THE BILL (Cont.) Clause 6 (s57): Employment contracts/performance agreements of municipal managers and managers directly accountable to municipal managers force municipal managers and managers reporting to them to – sign employment contract before they commence duty with the municipality conclude performance agreements within stipulated timeframes (i.e. 60/30) and the consequences thereof Your partner in service delivery and development

13. 4. MAIN OBJECTS OF THE BILL (Cont.) delete the discretionary power of municipal councils to appoint managers directly accountable to municipal managers on a fixed term contracts (s57(7) Clause 7 (s57A): Employment of dismissed staff enable the Minister to regulate the re-employment of municipal staff who have been dismissed for misconduct (categorisation) require that a staff member dismissed for serious misconduct may not be re-employed in a any municipality for a period of ten (10) years Your partner in service delivery and development

14. 4. MAIN OBJECTS OF THE BILL (Cont.) Clause 7 (s57A): Employment of dismissed staff mandate municipalities to maintain a record of dismissed staff mandate the Minister to maintain a record of staff members – who were dismissed for misconduct; and who resigned before finalisation of disciplinary proceedings Your partner in service delivery and development

15. 4. MAIN OBJECTS OF THE BILL (Cont.) Clause 8 (s66): Staff establishment provide for the approval of municipal staff establishment by the respective municipal councils prohibit the bloating of municipal administration in areas other than the core business of a municipality or the appointment of person/s against posts not provided for in the approved structure Your partner in service delivery and development

16. 4. MAIN OBJECTS OF THE BILL (Cont.) Clause 9&11 (s67 &s72): Systems and procedures requires that systems and procedures adopted by municipalities must be consistent with national standards set by the Minister extend the Minister’s regulatory power to make regulations relating to macro benefits such as medical aid and pension benefits after consultation with the Minister of Health and Minister of Finance Your partner in service delivery and development

17. 4. MAIN OBJECTS OF THE BILL (Cont.) Clause 10 (s71): Bargaining council agreements make it mandatory for organised local government to consult the FFC, Minister and any other partiesas may be prescribed require organised local government to take into account the budgets, fiscal capacity and efficiency of municipalities and national economic policies in concluding any collective agreement Your partner in service delivery and development

18. 4. MAIN OBJECTS OF THE BILL (Cont.) Clause 12 (s106): Voting in meeting stop the flagrant disregard of the law by amending the Code of Conduct for Councillors to make it a breach of conduct to vote or agree to any resolution before council or committee of council which is in conflict with any legislation applicable to local government Your partner in service delivery and development

19. END KE A LEBOGA DANKIE THANK YOU Your partner in service delivery and development