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LOCAL GOVERNMENT INPUT TO AD-HOC COMMITTEE ON SERVICE DELIVERY OVERSIGHT. CURRENT STATE OF LOCAL GOVERNMENT AND SERVICE DELIVERY CHALLENGES 3 FEBRUARY 2010. Outline of Presentation. 1. Current State of Local Government - Powers and Functions; - Institutional Systems
CURRENT STATE OF LOCAL GOVERNMENT AND SERVICE DELIVERY CHALLENGES
3 FEBRUARY 2010
1. Current State of Local Government
- Powers and Functions;
- Institutional Systems
- Political Systems;
- Administrative Systems;
- Capacity Constraints;
- Municipal Finance
2. Cross Cutting Issues Impacting on Local Government
- Transformation and Restructuring Initiatives;
- Governance Challenges
- Local Government Resources
- Councillor Support
CURRENT STATE OF LOCAL GOVERNMENT
In considering the current state of local government and the challenges municipalities face, it is absolutely necessary to reflect against what was envisaged by the White Paper on Local Government. In doing this the following critical areas have been identified for consideration:-
Clearly defined functional areas that are the responsibility of local government.
legislative and executive powers to administer and fulfill these functions.
Assignment and delegation of other (provincial and national) functions.
disjuncture between functions in the constitution and the developmental role of local government.
current local government functions do not enable local government to make the maximum social and economic impact envisaged.
uncertain which sphere is accountable for a function or service while other functions are better performed by another sphere than the one allocated the responsibility.
Uncertainty undermines accountability and hampers service delivery and causes tensionsPowers & Functions
three types of municipalities identified in the Constitution (Category A, B & C)
Districts were envisaged to fulfil the following key roles:
district-wide integrated development planning,
infrastructure development (particularly bulk),
capacity building to local municipalities and
direct service delivery on areas of inadequate administrative capacity of locals.
strong district local government has not come to pass and local municipalities remain dominant
Water supply and sanitation functions have been assigned to LMs in 22 districts.
LMs are electricity authority with DMs nominally being authority for areas where Eskom is service provider.
Misalignment between category B and C Municipalities in the IDP.
Insufficient understanding of respective roles, functions and responsibilities.
DMs are caught up in squabbles over powers and functions & plagued by uncertainty regarding their funding.Institutional Systems
3. In the medium to long term, emphasis should be placed on increasing the capacity of category B municipalities so that they could perform those functions.
4. Instil sufficient understanding (in both district and local municipalities), of their respective roles, functions and responsibilities.
directly elected municipal councils, comprising Ward and PR councillors.
Unlike at national and provincial level, the council holds both legislative and executive powers.
three modes of executive governance, namely inclusive executive committees; strong executive mayors and plenary councils.
defined roles and areas of responsibility of each political structure and political office bearer.
various systems of delegation from the elected council.
continued uncertainty around the role of councillors (PR vs constituency)
Lack of clarity around roles and responsibilities giving rise to conflict between mayors and speakers, speakers and chief whips, etc;
failure to comply with the policy and legislative provisions,
operational problems and blockages due to direct inability on the part of political decision-makers & officials to agree on the role to be played by each governance structure and political office bearer;
Failure to implement appropriate systems of delegation;Political Systems
New approaches building on existing capacity, corporatisation, public-public partnerships, partnerships with CBOs and NGOs, etc.
capacity requirements for developmental local government: strategic capacity, integrating capacity and community orientation.
local government training system highlighting the need for a regulator (LGSETA), purchasers and providers.
Labour relations, in particular the role of SALGBC and SALGA.
Roles of other spheres of government in terms of building administrative systems (capacity building).
Municipalities have not taken up new approaches to service delivery, challenge with Section 78 and MFMA Processes;
Whilst good progress has been made largely through 5 YLGSA, capacity constraints have crippled developmental local government.Administrative Systems
42% of MM’s have been in their current positions for less than 1 year
63% of MMs have been in their current positions for less than 2 years
Only 37% of current MMs have been in their current positions for more than 2 years
36% of CFO’s have been in their current positions for less than 1 year
50% of CFOs have been in their current positions for less than 2 years
44% of CFOs have been in their current positions for more than 2 years
Formal urban households
SALGA notes that whilst the financial position as at 30 June 2008 is strong, it appears that there has been a deterioration in the year 30 June 2009 (NT quarterly press statements). Debtors’ collections in particular have declined which will weaken the financial position set out above.
SALGA recognises the need to encourage and support members to improve FM practices
KEY ISSUES IMPACTING ON LOCAL GOVERNMENT
1. RED 1 Establishment
Establishment of RED 1 as a municipal entity
2. Sept 2005 / Oct 2006 Cabinet Decisions
Movement from 6+1 REDs as Municipal Entities (Sept ‘05) to 6 Wall-to-Wall REDs as Public Entities (Oct ’06)
Municipalities resolve on matters of Electricity Distribution in context of 2004 National Conference Resolutions
4. Local Gov Laws Amendment Bill 2007
Exemptions to be granted to municipalities in respect of chapter 8 and 8A of the Municipal Systems Act.
5. Asset Transfer Framework
To facilitate the transfer of electricity distribution assets from municipalities to the REDs as public entities.
6. REDS Establishment Bill
Central to the enablers that will expedite and remove a large percentage of the restraints
7. National Electricity Emergency
Wave of electricity load shedding
8. Proposed Constitutional Amendment
Considerations to Amend the Constitution to ensure successful implementation of restructuring
Endorse and support 25 Oct ‘06 Cabinet Decision;
Ensure that municipalities are not worse off on revenue with the establishment of REDs;
Fully participate and play a leading role in the establishment of REDs’ Regional Engagements Forums;
Encourage all municipalities to commence with the preparatory steps towards the establishment of the REDs;
Pursue DME and ESKOM to conduct an audit on electricity backlogs
Engage DME in upgrading existing energy generation and distribution infrastructure in terms of 2010.
In excess of 140 municipalities signed the Accession Agreements;
13 municipalities 100% complete with Ring Fencing Process & 20 ongoing;
18 municipalities completed Section 78 process, with others still in the process with funding now available on application from EDI Holdings;
Municipalities continuously encouraged to conduct Due Diligence Process;
All Regional Engagement Forums established;
Through NEDLAC Summit EDIH mandated to conduct audit on maintenance & backlogs, SALGA to supportSALGA Resolutions & Progress
CRITICAL AREAS OF CONCERN TO LG
Option to allow national government to limit municipalities’ legislative and executive authority in certain circumstances;
Circumstances would include, for example, where a municipal function or service can be provided to communities more effectively, efficiently and sustainably on a regional basis than on a local basis.
if this option is successfully pursued, it will mean that the current constraints preventing national government from effecting EDI restructuring will be overcome.
Various other interventions are required and should be explored, including:-
REDs participation must be incentivised
outstanding policy issues (the “Deal” incl. shareholding, governance arrangements for REDs, compensation) must be addressed;
Eskom (like municipalities) must transfer its distribution division to REDs;
Enablers - EDI restructuring legislation and if necessary regulations must be promulgated to fully implement the restructuring.Considerations to Amend the Constitution
With the two-term limit applicable to Mayors, local government faces
prospect of losing critical political leadership;
Evidence of imminent loss of key skills and experience:
Mayors serving first terms: 222
Mayors serving second terms: 61
of local government
INCORPORATION OF METRO POLICE INTO SAPS