APP 2014/15 Presentation to the Portfolio Committee on COGTA

1. APP 2014/15Presentation to the Portfolio Committee on COGTA 29 July 2014 1

2. Content Content: • Legislative Context • SALGA Constitution • SALGA mandate • SALGA Strategy 2012-2017 • Flagship projects 2014/15 • 2014/15 APP • Ongoing engagements with COGTA • Collaboration with COGTA • NDP priorities of SALGA • MTSF aspects as identified by COGTA

3. Legislative Context • Sect 163 of the Constitution provides for: • Recognition of national and provincial organisations representing municipalities • Determine procedures whereby local government may- • Consult national and provincial government • Designate representatives to the NCOP • Participate in processes of the FFC • Organised Local Government Act, 1997 provides for the recognition of one national organisation representing the majority of the provincial organisations which in turn represent the majority of municipalities in the province in question • All the different categories of municipalities in the province are represented in the organisation. • The national organisation must designate not more than 10 persons to participate in the proceedings of the National Council of Provinces.

4. Legislative Context (Cont.) • SALGA was established in 1996 and recognised in terms of Government Notice No R 175, 30 Regulation Gazette no 6087on 30 January 1998 • Section 3 of the Local Government: Municipal Systems Act, 2000, provides that for the purpose of effective co-operative government, organised local government must seek to: • Develop common approaches for local government • Enhance co-operation, assistance and sharing of resources amongst municipalities • Find solutions for problems relating to local government generally • Facilitate compliance with the principles of co-operative governance & IGR

5. SALGA Constitution • The SALGA Constitution defines SALGA as a unitary structure • The Governance structures at National Level are as follows: • National Conference, held every 5 years • National Members ‘ Assembly, held mid-term between Conferences • National Executive Committee • National Office Bearers • 9 National Working Groups • The Governance structures at provincial level are as follows: • Provincial Conference • Provincial Members Assembly • Provincial Executive Committee • Provincial Office Bearers • Provincial Working Groups

6. 1. Economic Development and Planning; 2. Climate Change, Environmental affairs and Sustainability; 3. Municipal Finance; 4. Community Development; 5. Municipal Trading Services; 6. Municipal Infrastructure Planning; 7. Human Resource Development and Collective Bargaining; 8. Governance and Intergovernmental Relations; and 9. Councillor Welfare and Support (only at national level). • National Roles and Responsibilities: • Advocate, lobby and represent at national IGR fora • Develop position papers, guidelines and frameworks for LG • Support provinces with implementation and interface with municipalities Municipal Infrastructure Services Community Development Economic Development & Planning Governance, IGR & IR Municipal Institutional Development Municipal Finance Governance and Administration NEC Working Groups PEC Working Groups Municipal Infrastructure Services Community Development Economic Development & Planning Governance, IGR & IR Municipal Institutional Development Municipal Finance Governance and Administration 1. Economic Development and Planning; 2. Climate Change, Environmental affairs and Sustainability; 3. Municipal Finance; 4. Community Development; 5. Municipal Trading Services; 6. Municipal Infrastructure Planning; 7. Human Resource Development and Collective Bargaining; 8. Governance and Intergovernmental Relations; and • Provincial Roles and Responsibilities: • Advocate, lobby and represent at provincial IGR fora • Liaise and consult municipalities on position papers, guidelines and framework development • Build the capacity of member municipalities and provide hands-on support

7. SALGA MANDATE The Voice of Local Government Lobby, Advocate & Represent Knowledge & Information Sharing SALGA Mandate Support & Advice Employer Body Strategic Profiling Capacity Building Transform local government to enable it to fulfil its developmental mandate. Act as an employer body representing all municipal members and, by agreement, associate members. Lobby, advocate, protect and represent the interest of local government at relevant structures and platforms. Support and advise our members on a range of issues to assist effective execution of their mandate. Build the capacity of the municipality as an institution as well as leadership and technical capacity of both Councillors and Officials. Serve as the main hub of local government knowledge and intelligence and to facilitate peer learning within the sector Build the profile and image of local government within South Africa as well as outside the country. The Voice of Local Government

8. SALGA MANDATES Representation Employer Body Capacity Building Support and Advisory Role Profiling Role LG Knowledge Hub SALGA 5 YEAR STRATEGIC PLAN 2012-2017 INTER / NATIONAL CONTEXT 1. MDGs & Global Commitments 2. National Dev Plan & other national plans/policies 3. MTSF 4. LGTAS 5. Electoral Mandate (2011) … … Org Capacity Risk APP 3 APEX PRIORITIES: Review of legislative & policy framework impacting negatively on LG. Review of LG fiscal & financial management framework. Improved municipal capacity. • 7 STRATEGIC GOALS • Accessible, equitable, sustainable services • Safe and healthy environment and communities • Coherent local planning & economic development • Effective, responsive and accountable local governance for communities • Human capital development in LG • Financially and organizationally capacitated municipalities • Effective and efficient SALGA administration. SALGA National SALGA Provinces Differentiated Approach to Managing / Supporting Local Government

9. Municipalities can celebrate the provision of basic services to millions of their residents, however some challenges still remain, particularly in terms of access, development and maintenance of infrastructure and the ability to provide these services in an affordable and sustainable manner. • This goal covers the policies, processes, operations and capacity that ensures that local government is able to provide a comprehensive range of municipal services (legislated and value adding) to communities, organisations and people and a manner that makes its accessible, equitable and sustainable. • Facilitate universal access to sustainable municipal infrastructure and services through: • Facilitate access to bulk infrastructure fund for priority projects • Facilitate the establishment of sustainable institutions to manage bulk infrastructure • Sustainable pricing and funding of services facilitated • Institutional arrangements to render sustainable services facilitated (municipal and social services) • Active citizenry for a cleaner environment (waste management promoted) • Refurbishment of municipal infrastructure services facilitated • Regulatory environment towards sustainable service provision Goal Execution Goal Definition Problem Statement

10. A remnant of South Africa’s past is high levels of disparity and inequity, in particular, disadvantaged communities have been subject to poor conditions in terms of health, housing, social and economic development. Given this the key priority for local government is the development of sustainable human settlements where social, health, economic and environmental factors are addressed in an integrated manner. This goal encapsulates the various social, health, economic and environment interventions that are implemented to build safe communities (crime and disaster), healthy communities (health status, socio-psychological wellbeing, functional communities), and environmentally aware and active communities (improved environment management). It also incorporates a specific focus on eradicating poverty, inequality, marginalisation and xenophobia at a municipal level. • Facilitate coherent and effective environmental management through: • Facilitated municipal development management that responds to climate change • including mitigation and adaptation • Integrated Environmental management facilitated • Improved & coherent municipal planning for disaster management and risk reduction • Facilitate safer communities through: • Adequately capacitated and funded role for Local Government on Migration and related Public Safety • Facilitate healthier communities through: • Well defined and funded Local Government role in District Health System (DHS) • Model for the development of sustainable community services, facilities and healthy lifestyles developed and implemented Goal Execution Goal Definition Problem Statement

11. The history of municipal planning in South Africa has contributed to inappropriate and undesirable patterns of development in municipalities characterised inefficiency, inequality and segregation. Planning under a democratic dispensation has not significantly challenged or re-moulded these patterns. There is an urgency to address planning and economic development at a local level as it will serve as a critical foundation for the development and viability of municipalities. This goal encapsulates the various planning and economic development initiatives that are implemented to build safer communities (crime and disaster), healthier communities (health status, socio-psychological wellbeing, functional communities), and environmentally aware and active communities (improved environment management at a local). It also incorporates a specific focus on eradicating poverty and inequality at a municipal level. • Lead the fight against poverty, poverty, inequality and marginalization through: • Improved municipal capacity towards LED for the creation of new and better jobs • Improved access of Local Government to knowledge and information on transversal issues and poverty eradication • Engage with national policy, industry or ICT agency structures to better enhance a local government ICT position. • Promote Local Government as a centre of Development and Planning through: • Represent the interest of LG in the review of national and provincial policies to improve the ability of municipalities to manage development planning • Support Municipalities to reverse the apartheid spatial planning and development patterns • Support municipalities to increase to the number of those producing credible IDP’s • Lobby for support of municipalities in rural development and agriculture by National Depts Goal Execution Goal Definition Problem Statement

12. The country, in its ambitious agenda to establish a developmental state and developmental local government has implemented a range of legislation, policy and institutional arrangements to deliver democratic governance to its people. The current legislation, policy and intergovernmental structures and practices do not always work in the interest of local government and in some instances, they work against it. Of particular concern are instances where the constitutional status of local government as an independent sphere of government has been negatively impacted. This goal encapsulates the various governance and intergovernmental issues from legislation and policy, to funding and institutional arrangements. It covers issue across all spheres of government and specific issues in relation to the local sphere of government. • Effective IGR Support and International Relations through: • Structured engagements between LG and executive at provincial and national level • Sustainable & self-sufficient municipalities - able to deliver effective and accountable governance • Effective participation of SALGA in National and Provincial legislatures • Cultivate good corporate governance and leadership • Good governance in municipalities through effective internal governance structures and systems • Improved and uniform system of support for public office bearers • Strengthened community participation in municipal governance through: • Innovative and Effective Public Participation in municipalities • Functional municipal boundaries and ward delimitation • Support Local Government to lead the fight against corruption • A well coordinated Local Government fight against corruption • Facilitate an enabling environment for the functioning of developmental local government • Comprehensive review of legislation and policy framework impacting on municipalities Goal Definition Problem Statement Goal Execution

13. While the relevant local government legislation and policy addresses issues relating to HRM&D there is no comprehensive and coherent dispensation for the sector as a whole which causes challenges in terms of implementing effective HRM&D policies and strategies. This scenario makes it difficult for SALGA to effectively perform its mandate as the employer representative for local government. The above scenario is further exacerbated by the challenging labour relations environment. Addressing the HRM&D and labour relations challenges is therefore critical in building stability in the sector and ensuring that the sector is appropriately resourced and capacitated to fulfill its mandate.   This goal encapsulates the various policy, strategy and support initiatives that are required to establish a comprehensive HRM&D dispensation for LG. It also focuses specifically on labour relations as a key factor of productivity and service delivery. The goal places particular emphasis on achieving HRM&D stability and growth in sector and supporting skills development and optimal human resourcing for local government. • Facilitate sound and stable labour relations through: • A mutual gains approach to collective bargaining facilitated • Review of existing collective agreements framework • SALGA position on amendments to the LRA incorporated in the Amendment Act • Represent the interest of Local Government at NEDLAC and ILO • Facilitate empowered leadership and workforce through : • Implementation Framework for professionalization of LG HR developed and implemented • Systems, structures and partnerships for enhanced capacity building programmes established • Enhanced peer learning and knowledge sharing within and between municipalities • Facilitate improved Human Management through: • Local Government Human Resource Policy and Strategy developed and rolled out Goal Execution Goal Definition Problem Statement

14. This goal encapsulates the various policy, strategy and support initiatives that are required to build and enabling fiscal framework and adequate local government capacity to deal with financial management. The ultimate focus of this goal is build long term financial viability and broader sustainability of municipalities. The financial challenges faced by municipalities have been well documented, with some municipalities demonstrating a lack of financial viability. This has an obvious impact on the ability of municipalities to be fully functional and perform on its mandate. This is firstly due the challenges in the current fiscal framework and the processes associated with fiscal transfers and the equitable share model. It is also linked to a broader policy that does not differentiate in the definition or categorisation of municipalities. The reality is that many municipalities face significant challenges in financial and organisational viability. This problem has persisted since the establishment of democratic local government. Hence there is a need to address some the fundamental difficulties associated with the fiscal framework for local government. • Efficient and effective municipal finance management and an Equitable intergovernmental fiscal system through: • Lobby National Treasury, Parliament and other stakeholders for an equitable intergovernmental fiscal system • Review Legislations and policy framework for efficient budgeting, revenue and expenditure management in LG • Improved financial governance and audit outcomes • Recognition of a differentiated financial support for municipalities Goal Execution Goal Definition Problem Statement

15. This goal encapsulates the various interventions that SALGA will implement to ensure that its administration functions effectively and efficiently. These interventions will cover areas of governance, products and services, performance management, people development and marketing and communication. In particular the goal will also focus on consolidating SALGA as a unitary structure with national footprint. Part of the process of consolidation will include a bolstering of SALGA’s financial and organisation viability. Through its recent history SALGA as organisation have implemented various initiatives to position the organisation to effective deliver on its mandate. These initiative broadly have sought to ensure that strategy, structure, systems, processes, staff and style of organisation are aligned and functional. Given the significant pressure that will be placed on SALGA to deliver is strategy, it is critical that it has an effective and efficient administration. • Develop SALGA as a centre of excellence • Operational excellence model developed and implemented • Improved stakeholder relations and cooperation • Marketing and communication plan implemented • Good Business Governance and knowledge management • Financial management and sustainability • Human resources management and building capacity building • Compliance with legislative environment Goal Execution Goal Definition Problem Statement

16. Flagship projects 2014/15 • Phased implementation of the SALGA Centre for Leadership and governance • Initiation of an executive coaching programme for municipal leaders • Initiation of a multi-disciplinary advisory and hands-on support for improved municipal audits • Lead the review of legislation that impedes on LG and OLG (OLGA, Municipal Structures Act, Municipal Systems Act, Data Management • Implementation of an Anti-Corruption programme based on resolutions of the SALGA Anti-Corruption Summit • Initiation of a small town regeneration programme to unlock rural economies and manage the urban-rural interface / interdependencies • Support municipalities in the implementation of EPWP and CWP thereby promoting job creation by municipalities (Convene a LG job creation summit) • Lead Knowledge Management in Local Government focusing on (Research, Sharing of Local Government best practice, Knowledge Hub, Municipal Barometer, HR Information Management System, Municipal Managers’ Forum • Profiling of local government service delivery successes & rebranding of SALGA • Initiate a quality management programme for Local Government and SALGA

17. SALGA ANNUAL PERFORMANCE PLAN 2014/15 (CURRENT YEAR)

18. SALGA PERFORMANCE PLANNING AND REPORTING FRAMEWORK Year 1 Year 2 Year 3 Year 4 Year 5 Strategic Plan 5-Years Annual Performance Plan STRATEGIC GOALS AND PRIORITIES2012 - 2017 Quarterly Reporting Year 1 2012/13 Year 4 Year 5 Year 2 2013/14 2014/15 Annual Report Q1 + Q2 + Q3 + Q4 =

19. SALGA PERFORMANCE PLANNING AND REPORTING FRAMEWORK The SALGA APP 2014/15 which represents year three (3) of the SALGA Strategic Plan: 2012-17 now consists of: • 3 Apex Priorities • 7 Strategic Goals, • 63 Targets/Deliverables • 72 Key Performance Indicators • 10 Flagship Projects (2014/15) Organisational performance reporting to CoGTA shall be based on the 63 targets and 72 KPIs and similarly be audited by AG   Continuous efforts to streamline the plan towards greater performance and reporting efficiencies

20. IGR LP NC WC FS KZN MP NW N EC GP • Quarterly Report and Annual Report • 7 Goals • 3 APEX Priorities 2012-2017 • 6 SALGA Mandates • 63 Targets/Deliverables • 72 KPIs • 10 Flagship • Per Directorate /Province MID LP NC WC EC FS GP KZN MP NW N LP NC WC EC FS GP KZN MP NW N EDP IN-YEAR REPORTING LP NC WC N EC FS GP KZN MP NW MF 63 LP NC WC EC FS GP KZN MP NW N MIS LP NC WC N EC FS GP KZN MP NW CD LP NC WC FS KZN MP NW N EC GP FCS OCEO LP NC WC FS KZN MP NW N EC GP NEC/PEC/ CEO

21. DELIVERABLES PER STRATEGIC GOAL 2014/15

29. MATTERS FOR ON-GOING ENGAGEMENTS WITH COGTA

30. Interventions and Interventions Bill • Unfunded / Underfunded Mandates • Determination of upper limits for salaries of senior managers in local government • COGTA Local Government Institute • Draft regulations on conditions of service for bargaining council employees • Consequences and accountability framework • Review of Organised Local Government ( Work in progress, Bill being drafted)

31. Devolution of the Housing Function • Reform of the electricity industry • The determination of the upper limits of the salaries of municipal councillors • SALGA’s Anti-Corruption Commitment • Theft of electricity cables • Municipal Property Rates Amendment Act (Although passed by Parliament, SALGA requested the President not to assent to the Act but to refer it back for further consultation.) • Public Administration Management Act (Although passed by Parliament, SALGA requested the President not to assent to the Act but to refer it back for further consultation.)

32. MATTERS FOR ON-GOING COLLABORATION WITH COGTA

33. Finalisation and implementation of the IUDF • Legislation impeding service delivery • Special Presidential Package on the Revitalisation of Mining Towns • Professionalisation of local government • Review of the LG Anti-corruption Strategy • Participation of Traditional Leaders in municipal processes and council meetings and related matters • Responses to municipal audit outcomes

34. SALGA responses to the National Development Plan • Transitioning a low carbon economy • SALGA established a Climate Change, Environmental Affairs and Sustainability Working group • Specific focus areas under goal 1 and goal 2 • Inclusive rural economy • Economic Development and Planning working group • Specific focus areas under goal 3 • Currently small town regeneration project • Human settlements • Specific focus area under goal 1 • Assisting metros with Assignment of function

35. SALGA responses to the National Development Plan (Cont.) • Promoting health • Specific focus areas under Goal 2 • Social protection • Specific focus areas under goal 2 • Building safer communities • Specific focus areas under goal 2 • Building a capable state • Specific focus areas under goal 4, 5 & 6 • Specific focus on effective IGR • Enabling environment for the functioning of developmental local government • Good governance • Professionalisation of local government

36. SALGA responses to the National Development Plan (Cont.) • Promoting accountability and fighting corruption • Specific focus areas under Goal 4 • Effective accountability and oversight in municipalities • Support municipalities to implement practical measures against corruption • Local government leading the fight against corruption and mal-administration • Transforming society and uniting the country - active citizenry • Specific focus areas under Goal 4 • Innovative and effective public participation mechanisms • Partnerships with civil society

37. SALGA response to the MTSF The key features of the MTSF relating to COGTA and as highlighted by the Ministry to the Portfolio Committee includes the following: • Members of society have sustainable and reliable access to basic services. • Municipalities supported on institutional arrangements for sustainable service provision • Research into cost of provision • OLG position on funding options for infrastructure renewal • Intergovernmental and democratic governance arrangements for a functional system of cooperative governance strengthened. • SALGA proposal on the refined model for coherent support to municipalities • Sound financial and administrative management. • Municipalities supported to deliver effective and accountable governance

38. SALGA response to the MTSF (Cont.) • Promotion of social and economic development. • Improved capacity in local government to deal with migration • Model for improved community facilities in municipalities piloted • Support to municipalities in the development of LED Strategies • Implementation of a capacity building programme for municipal dsupport on Rural Development and Agriculture • Local public employment programmes expanded through the Community Work Programme (CWP). • Improved profiling, monitoring and evaluation and capacity building in relation to poverty eradication approaches

39. Previous engagements with the Portfolio Committee Since their election in 2011, the current SALGA leadership had engaged with the Portfolio committee on a number of occasions, focussing on the following: • 5-year Strategic Plan & APP • Annual report • Local Government Budgets and Expenditure Review • Challenges relating to payment of government property rates (Partly resolved) • Progress in the establishment of MPACs; Establishment and Functionality of Local Labour Forums; Assistance provided by SALGA to municipalities in the roll-out of basic services; Outcomes of Councillor Induction Programme; Plan of Action for the resolutions of SALGA National Conference • Draft regulations on appointment and conditions of service of senior management • SALGA relations with LG SETA and SETA’s involvement in Cllr capacity building • Municipal Property Rates Amendment Bill ( This matter remains a challenge)

40. Appropriation matters to be brought to the attention of the Committee SALGA will raise the following matters as critical at the 2014 Budget forum: Unfunded / Underfunded Mandates Housing Function Health Care Services Libraries & Museums Ambulance Services Roads Regulatory Framework Regulations: Standard Chart of Accounts Regulations: Appointment & Conditions of Employment of Senior Managers Spatial Planning and Land Use Management Act Municipal Boundary Determinations Public Administration Management Bill

41. Appropriation matters to be brought to the attention of the Committee (Cont.) SALGA continues to participate in the review of the LG Fiscal framework such as: • Local government infrastructure Grant Review • Review of Metropolitan municipalities‘ own revenue sources • Cost of providing free basic services

42. Municipal Audit Outcomes SALGA Approach • After consultation with the A-G, National Treasury, COGTA and other role players, SALGA developed its own Municipal Audit Support Programme (MASP) • It will focus on municipalities not submitting financial statements as well as the 67 municipalities with the worst audit outcomes • MASP will follow a multi-disciplinary approach and will focus on aspects not addressed by other institutions. • Aspects to be addressed will include financial management, leadership, capacity building, governance, record management etc. • MASP to be launched soon • SALGA would like to dedicate a session with the Committee to share its approach in detail

43. NCOP Local Government Week • In 2011 and 2012 the NCOP in partnership with SALGA, has hosted the NCOP LG Week. • The week focuses all discussions during that week on matters relevant to Local Government • The objectives of the Local Government Week are to: • Showcase successes and challenges confronting municipalities in the execution of the developmental mandate; • Assess the adequacy of the support framework from national and provincial government, as envisaged by the Constitution; • Explore means of enforcing the constitutional support framework; and • Facilitate dialogue on local government issues and foster a common understanding on the challenges at hand, as well as to propose short-term, medium term and long-term solutions. • The NCOP chair committed to host a LG Week in 2014 and the Portfolio Committee will be invited to participate

44. SALGA IS MATURING • Strong winds set deep roots … • We have taken our time to establish our roots in order to anchor a mighty tree • Collective effort towards Building SALGA as a centre of Corporate Excellence are beginning to yield the necessary fruits. ”Day by day nothing changes … but one day when you look back everything is different” 44

45. Maturing Phase Sustainability Phase 2013/14Unqualified Audit Opinion with no findings Clean 2010/11UnqualifiedAudit Opinion 2012/13Unqualified Audit Opinion with no findings Clean 2011/12 Unqualified Audit Opinion 2009/10 Unqualified Audit Opinion

46. Thank you