2018/19 ANNUAL PERFORMANCE PLAN MEDIUM TERM …
Transcript of 2018/19 ANNUAL PERFORMANCE PLAN MEDIUM TERM …
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www.salga.org.za
2018/19
ANNUAL PERFORMANCE
PLAN
MEDIUM TERM
EXPENDITURE FRAMEWORK
PORTFOLIO COMMITTEE ON COGTA17 APRIL 2018
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www.salga.org.za
PRESENTATION OUTLINE
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1. Background
2. Update on matters arising from previous engagements
3. 2017/18 Performance per Mandate
4. 2018/19 Deliverables
5. Financing the Plan
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BACKGROUND
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Embarking on the Task of Transforming Local Government
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Objects of Local Government
1. Provide democratic and accountable government for local
communities;
2. Ensure the provision of services to communities in a sustainable
manner;
3. Promote social and economic development;
4. Promote a safe and healthy environment; and
5. Encourage involvement of communities & community
organisations in matters of LG
A key mission was to build a system of developmental
local government that is:
Caring
Accountable
Responsive
Innovative
Participatory
Capable
Resilient
Viable
Development oriented
Service delivery oriented
SALGA is expected to play a leading supportive
role in the wholesale transformation of local
government to be developmentally oriented
(White Paper on LG 1998)
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Embarking on the Task of Transforming Local Government
SALGA is expected to play a leading
role in the transformation of LG to be
developmentally oriented
SALGA has potential to make a strong
contribution to the development of
munic in the country, through eg:
• Provision of specialised services
to strengthen capacity of LG
• Research and information
dissemination;
• Facilitate shared learning
between municipalities;
• Human resource development;
and Cllr training [Leadership
Development]
For the purposes of effective cooperative
government, OLG must:
• develop common approaches for LG as a
distinct sphere of govt;
• enhance co-operation, mutual assistance
and sharing of resources among
municipalities;
• find solutions for problems relating to LG
generally; and
• facilitate co-operative govt. & IGR.
Further expansion of SALGA’s obligations
through other legislation
• IGRF Act, Water Act, Demarcation Act, etc
Objects of Local Government
1. to provide democratic and accountable government for local communities;
2. to ensure the provision of services to communities in a sustainable manner;
3. to promote social and economic development;
4. to promote a safe and healthy environment; and
5. to encourage the involvement of communities and community organisations in the matters of local govt.
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MATTERS ARISING FROM
PREVIOUS DISCUSSIONS
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www.salga.org.za
ISSUES FROM THE PREVIOUS SESSION
CAPACITY BUILDING PRODUCTS AND SERVICES?
The LGSETA is the primary Seta for the sector and SALGA has 5 representatives on the LGSETA board. SALGA’s programmes as per the Local Government Capacity Building Funding Plan 2017-2022 and in line with the SALGA overall Strategy for the period 2017-2022.
PROGRAMME
NAME
PROGRAMME DESCRIPTION FUNDING ALLOCATION
FROM LGSETA
STATUS UPDATE
ICIP (generic CIP) ICIP is a sector accredited programme coordinated by SALGA and
delivered in collaboration with COGTA; National Treasury, the National
School of Government, LGSETA and a range of stakeholders within and
outside of government. ICIP is anchored on the 5 pillars of the Back to
Basics approach, multi‐disciplinary in its implementation approach,
aspires to respond to the National Capacity Building Framework (NCBF)
imperatives and represents the foundational learning layer of a Macro
Leadership Learning Pathway for Cllr capacity building that is set out for
the full duration of the term of Municipal Councils (2016‐2021).
R10 mil A total of 8174 councillors
and 243 traditional
leaders were trained
during Phase One of
Generic CIP;
A total of 8078
certificates of
attendance were issued.
Portfolio based
inductions - A total of
2779 councillors have
been trained nationally
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www.salga.org.za
CAPACITY BUILDING PRODUCTS AND SERVICES
PROGRAMME
NAME
PROGRAMME DESCRIPTION FUNDING ALLOCATION
FROM LGSETA
STATUS UPDATE
Leadership in
Municipal
Governance
Programme
(LMGP)
The Leadership in Municipal Governance Programme is a unique
‘professional training and development programme’ established
in response to the articulated and inherent needs of local
government political leaders who exercise ‘executive’ and
‘oversight’ responsibilities in the development of their localities.
The initiative is structured a s a formalised Certified Programme,
but delivered as a ‘support intervention’ that facilitates the
transfer of knowledge and theory into active practices within the
structures of local municipal institutions.
R7 695 000.00 A total of 130 out 270
delegates have been
trained to date
nationally. Training is still
in progress
Municipal Leaders
Media and
Stakeholder
Engagement
Programme
(MSEP)
The objective of the Media and Stakeholder Engagement
Programme for Leaders Programme is to ensure that Elected
Leaders and Municipal Officials perform their roles of external
relations, community and stakeholder engagement optimally. The
programme also aims to use critical communications and media
management tools to enhance and promote public
participation.
R 6 650 000.00 A total of 412 out 1400 delegates have been trained. This project is work in progress
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www.salga.org.za
PROGRAMME
NAME
PROGRAMMEDESCRIPTION FUNDING
ALLOCATIO
N FROM
LGSETA
STATUS UPDATE
LocalLinks
Leadership
(Seminar
Styled)
Conversations
(LLLC)
The LocalLinksLeadership
Conversationscreates
decentralized, small group
learning conversations
between Executive Leaders
with aim of promoting peer
learning and exchange.These
leadershipconversationswill
be provincially based and will
take the form of facilitated
communities of practice.
R604 800
.00
The conceptual
frameworkof this
programme is being re-
examinedto create an
alignment betweenthe
SALGAStrategicGoal
Areas, the delivery
methodology aswellas
securing th i rd party
collaborationand
delivery partners.
Municipal
Leadership
Competency
Assessment
Centre
(MLCAC)
The MLCAC is a tailored
competency assessment
centre platform established
by SALGA with the financial
support of the LGSETA.The
MLCAC provides
competencyassessment
servicesto municipal
executives and political
heads.
R5m The centre has already
beenestablishedand
100candidatesfor
Senior Managers
positions havebenefited.
Based on our
monitoring mechanism,
327 Senior Managers
vacancieshave been
advertisedby
municipalitiessince March
2017 –to date.
PROGRAMME NAME PROGRAMME DESCRIPTION FUNDING
ALLOCATION FROM
LGSETA
STATUS UPDATE
Local Links Leadership
(Seminar Styled)
Conversations (LLLC)
The Local Links Leadership Conversations
creates decentralized, small group learning
conversations between Executive Leaders
with aim of promoting peer learning and
exchange. These leadership conversations
will be provincially based and will take the
form of facilitated communities of practice.
R604 800 .00 The conceptual framework of this
programme is being re-examined to
create an alignment between the
SALGA Strategic Goal Areas, the
delivery methodology as well as
securing third party collaboration
and delivery partners.
Municipal Leadership
Competency Assessment
Centre (MLCAC)
The MLCAC is a tailored competency
assessment centre platform established by
SALGA with the financial support of the
LGSETA. The MLCAC provides competency
assessment services to municipal executives
and political heads.
R5m A separate feedback will be
provided on this project
CAPACITY BUILDING PRODUCTS AND SERVICES
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www.salga.org.za
PLATFORMS WHERE SALGA LEADERSHIP PARTICIPATE?
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24
21
0
5
10
15
20
25
30
SALGA governancestructures
SALGA otherengagements
UCLG engagements
• One of SALGA’s role is to lobby,
advocate and represent
municipalities.
• SALGA’s Leadership represented
SALGA on various platforms where
SALGA was lobbying on behalf of
municipalities.
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www.salga.org.za
SALGA’S APPEARANCE IN PARLIAMENT
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5
2
0
2
4
6
8
10
12
14
16
PortfolioCommittees
SelectCommittees
StandingCommittees
• SALGA participated in joint sittings
of Parliaments where the SALGA
President addressed the house.
• SALGA through various NEC
members participated in the budget
policy speeches
• The President attended Joint
Programming Committee Meetings
• SALGA participated in NCOP major
activities like plenary debates,
annual review sessions etc.
• Attended ADHOC Committees and
responded to Bills
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PERFORMANCE PER
MANDATE
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Lobby, Advocate & Represent
Employer Body
Capacity Building
Support & Advice
Strategic Profiling
Knowledge & Information
Sharing
SALGA identified the regulations for small scale
embedded generation as well as it licensing as policies
that are an impediment to the service delivery of Electricity
and Energy. Through SALGA lobbying and advocating, the
new licensing regulations which allow small scale of
renewable energy for municipalities were approved.
SALGA hosted a Summit to have a wider conversation
around the policies impeding the operations of
municipalities in the energy space. Recommendations
were made around the institutional reforms that will be
followed through as part of the summit declaration and the
plan of action.
The National Department of Human Settlements initiated a
process of amending the Prevention of Illegal Eviction
from and Unlawful Occupation of Land Amendment (PIE)
Act, 1998.
SALGA consulted municipalities and lobby NDHS to
amend the Act and the draft Amendment Bill
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Lobby, Advocate & Represent
Employer Body
Capacity Building
Support & Advice
Strategic Profiling
Knowledge &
Information Sharing
The national legislative, policy and fiscal regime does not treat
environmental management as a municipal service and as such,
municipalities are unable to appropriately budget for and measure
performance of the functions.
Developed a position paper on the Legislative Framework for
Environmental Management, which will assist LG to clarify the
responsibilities with regards to environment function. In addition,
SALGA developed a policy position paper on Funding requirements
for Environmental Performance, with the aim of influencing the fiscal
regime to make provision for funding instruments for environmental
performance areas.
Municipal debt was profiled and proposals on how to deal with the
historical debt owed to municipalities was presented and lobbied for in
Parliament to the Select Committee, Presidential Coordinating
Committee and various SALGA Governance platforms.
SALGA continued its lobbying and participation in the National
Intergovernmental Task Team sessions to address challenges faced
by organs of state including sector departments, national and
provincial, in settling their debts owed to municipalities. Budgetary
constraints as well as procedural aspects seen as challenges were
discussed.
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Lobby, Advocate & Represent
Employer Body
Capacity Building
Support & Advice
Strategic Profiling
Knowledge & Information
Sharing
The 2017/18 financial year saw the
development and approval of the
SALGA Collective Bargaining Strategy
for 2018/19 and Beyond for negotiations
at the South African Local Government
Bargaining Council (SALGBC).
Representations provided to member
municipalities across provinces on
labour related matters as follows:
107 disciplinary hearings,
82 conciliations and
183 arbitrations.
Pension Fund Restructuring Collective
Agreement Negotiated at SALGBC.
Awareness creation on the Local
Government Service Charter facilitated
in municipalities across provinces.
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Lobby, Advocate & Represent
Employer Body
Capacity Building
Support & Advice
Strategic Profiling
Knowledge &
Information Sharing
Through the SALGA Centre for Leadership and
Governance (SCLG) 4743 councilors and senior
municipal officials benefited in the training programmes
as follows:
• 164 beneficiaries in the Senior Managers Induction
Programme (SMIP),
• 131 beneficiaries in the Leadership in Municipal
Governance (LMG) Programme,
• 480 beneficiaries in the Municipal Leaders Media
and Stakeholder Engagement Programme
(MSEP),
• 2933 beneficiaries in the Portfolio Based
Councilor Induction Programme
• 279 beneficiaries in the Councilor Induction
Programme (CIP)
• 190 beneficiaries in the ICIP Accredited Facilitator
Programme.
• 277 beneficiaries in the Annual Local Government
Performance Management Seminar and
• 273 in the Annual Local Government Labour Law
Seminar
• 16 beneficiaries in the Accredited Performance
Management Support Programme.
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Lobby, Advocate & Represent
Employer Body
Capacity Building Support &
Advice
Strategic Profiling
Knowledge & Information
Sharing
1. SALGA conducted a review of the register published by the
Minister of Labour in accordance with section 41 of the EEA,
in order to ascertain the level of compliance by member
municipalities. 208 (81%) municipalities have reported.
2. Competency assessments of 309 candidates (senior
managers in municipalities) assessed through the Municipal
Leadership Competency Assessment Centre (MLCAC) in the
period under review.
3. Thirty Six (36) municipalities were provided with customised
support to institutionalise and cascade performance
management system.
4. Support was provided to 43 municipalities on MASP during the
2017/18 financial year. Of the 43 municipalities supported 18
were in the red zone. 7 municipalities supported progressed in
terms of their audit outcomes. The 7 municipalities that
progressed were:
Inxuba Yethemba (EC),
Sundays River Valley (EC),
Emalahleni (MP),
Ga-Segonyane (NC),
Mafikeng (NW),
Mpofna (KZN), and
Prince Albert (WC).
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Lobby, Advocate
& Represent
Employer Body
Capacity Building
Support & Advice
Strategic Profiling
Knowledge &
Information Sharing
1. During the year under review, over 50 media
releases and media advisories developed
and disseminated to the media. These
generated media coverage, increasing
visibility for SALGA and the sector2. A 22nd edition of the Voice was published 3. SALGA specific coverage generated 289
media mentions. This was broken down into
(Print: 116; Broadcast: 26; Online: 147). 4. Convened 9 PMAs in all provinces where the
2016 Annual Report, 2018/19 Annual Performance Plan and Budget were presented and approved
5. SALGA specific coverage generated 212
media mentions in March 2018. This was
broken down into (Print: 62; Broadcast: 30; Online: 120).
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www.salga.org.za
ORGANISATIONAL STRESS PENDULUM
(2007 – 2017)
2015/16
Clean Audit
Opinion
2005/06Disclaimer of Audit
Opinion
2006/07Disclaimer of Audit
Opinion
2007/08Qualified Audit
Opinion
2008/09Disclaimer of Audit
Opinion
2009/10Unqualified Audit Opinion
2014/15Clean Audit
Opinion
2010/11Unqualified Audit Opinion
2011/12Unqualified Audit Opinion
The last five years
have seen SALGA
grow into a well
governed,
accountable, high
performance
organisation
2016/17
Clean Audit
Opinion
2013/14Clean Audit
Opinion
2012/13Clean Audit
Opinion
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2017-2018
DELIVERABLES
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www.salga.org.za
• Since establishment in 1996, SALGA has transformed through a series of milestones (Journey of a thousand hills)
• Based on OLGA, OLG was established as nine different provincial structures
• From establishment SALGA began participating on adhoc basis in development of LG policy & regulatory framework
• The period up to 2007 was highlighted by coordinating the fragmented voice of LG into one voice
• 2007 to 2012 saw the consolidation of the organisation as a unitary structure that plans, operates and reports as one
• 2012 to 2017 saw the organisation grow into a high performance organisation & consistently achieving clean audits
• 2017 to 2022 must translate this high performance and good governance into meaningful impact in the sector
1996
SALGA Established
2000
Birth of Democratic Local Government
2012 - 2017
High performance and well governed
1996 - 2000
Base law and policy for developmental LG
2007 - 2012
Consolidation to a well oiled machine
• Better outcomes in munics
• High performing munics
• Restored image & credibility
• Confidence of communities
Caring
Accountable
Responsive
Innovative
Participatory
Capable
Resilient
Viable
Development oriented
Service delivery oriented
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SALGA National
SALGAProvinces
STRATEGIC GOALS
1) Sustainable, Inclusive
Economic Growth
Underpinned by
Spatial Transformation
2) Good Governance &
Resilient Municipal
Institutions
3) Financial Sustainability
of Local Government &
Greater Fiscal Equity ANNUAL REPORT
O-PMS (APP
BudgetI-PMS
Risk
Capacity Building
INSPIRING SERVICE DELIVERY
…
…
SALGA MANDATES
1. Representation
2. Employer Body
3. Capacity Building
4. Support and Advisory Role
5. Profiling Role
6. LG Knowledge Hub
SALGA 5 YEAR STRATEGIC PLAN
2017-2022
INTERNATIONAL CONTEXT
1. SDGs
2. New Urban Agenda
3. Framework for Disaster Risk
Management
4. Accord for Climate Change
5. Accord for Infrastructure Finance
STRATEGIC ENABLERS
1) Information and
Communication Technology
2) Data Intelligence
3) Innovation
4) Research and Knowledge
Management
5) Effective and Efficient
Administration
6) Marketing and
Communication
7) Strategic Partnerships
Dynamic ExcellenceResponsive Innovative
NATIONAL CONTEXT
1. NDP
2. MTSF
3. B2B Approach & IUDF
4. Electoral Mandate (2016)
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GOAL 1:
Sustainable Inclusive Economic Growth underpinned by Spatial Transformation
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www.salga.org.za 24
STRATEGIC GOAL 1:Sustainable, Inclusive Economic Growth underpinned by Spatial Transformation
To implement a sustainable
Urban Development Programme
To support regional
economic strategies and effective Land
Use Management approaches as
drivers of economies of
scale and social cohesion
To promote high quality and reliable
service provision and infrastructure
investment
To strengthen the role of
local government
in community development
and social cohesion
Objective 2Objective 1 Objective 3 Objective 4
Context
The main thrust
is to foster
integrated and
sustainable
urban
development
and
management,
regional
economic
growth inclusive
of rural
development
and bring about
social cohesion
Linkages to
Global and national
• National
Development
Plan
• Integrated
Urban
Development
Framework
• Sustainable
Development
Goals
• AMICAAL
Africa goals
• CEDAW
• SADC Protocol
on Gender and
Development
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www.salga.org.za
FLAGSHIP PROJECTS
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Goal 1:
Sustainable Inclusive Economic Growth
underpinned by Spatial Transformation
Facilitate effective
management of
space through: • SPLUMA Support,
• Initiation of New
Generation LUMS,
• Research and
support for Urban
land release
• Rural densification
• Development of a
Spatial
transformation
index
Support the
regeneration of
small towns and
other vulnerable
economies through
regional
development
approach
Facilitate and
guide social
cohesion
programmes
in
municipalities
Lobby for
broadband to
become a fifth
utility
Drive a
campaign on
clean cities and
villages through
internal and
external options
for waste
management
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www.salga.org.za
INCOME INEQUALITY VS SPATIAL INEQUALITY
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• Eighteen years after the establishment of “Wall-to-Wall” democratic local government our municipal spaces remain
"Two-worlds" municipalities and societies. This is despite sterling progress made by municipalities in providing access
to basic services to those who were previously unserved
• This situation is not sustainable - neither for the "world" that is wealthy, prosperous, well-resourced and
internationally connected; nor for the one that is overtly asset-poor, grossly under- resourced and under-developed
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www.salga.org.za 27
Outputs
1. New generation land use
management framework
developed by 31 March 2019
2. Land release framework for
cities and towns developed by
31 March 2019
3. Framework to facilitate rural
densification developed by 31
March 2019
4. SPLUMA capacity building
programmes implemented by 31
March 2019.
Activities
1. Conduct a study on new generation land use management
2. Develop a framework on new generation land use management
3. Assist municipalities in adopting the new generation land use
management framework
Activities
1. Conduct research on land release
2. Develop proposals to lobby relevant stakeholder on land release
3. Develop the land release framework for cities and towns
Activities
1. Develop rural densification framework
2. Consultation with relevant stakeholders on rural densification
3. Pilot municipalities on rural densification
Activities
1. Identify gaps on the implementation of SPLUMA
2. Develop capacity building programmes to address the identified gaps
3. Roll out of the programme to support municipalities to implement
SPLUMA
IF WE UNDERTAKE THESE ACTIVITIES…. WE WILL PRODUCE THESE
OUTPUTS….
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www.salga.org.za
REGIONAL APPROACH TO SMALL TOWN REGENERATION
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Population and socio-
economic
development
manifests differently in
various regions across
the country
The regions disregard
admin boundaries &
often include multiple
municipalities
Note the
manifestation of
vulnerabilities in the
different regions
Population Size & Growth
Unemployment & Dependency Social Vulnerability
Population Profile
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www.salga.org.za
REGIONAL DEVELOPMENT
29
Socio-economic development,
linkages and mobility often
disregard administrative
boundaries and requires us to
consider regional approaches to
development
Karoo Region covers four
provinces: WC, NC, EC, FS
Gauteng City Region covers 3
metros and 2 district
municipalities. Initial boundary
extended into FS and NW
Agricultural Regions
Karoo Region
Mining Region Tourism Region
Gauteng City Region
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Outputs
1. Framework for the
categorisation of
regional economies
developed by 31
March 2019
Activities
1.Conduct research on mapping and
categorisation of regional economies
2.Facilitated stakeholder engagements
3.Develop framework for the categorisation of
the regional economies
4.Implement the SALGA small town
regeneration programmes including Karoo
STR initiative
IF WE UNDERTAKE THESE ACTIVITIES…. WE WILL PRODUCE THESE
OUTPUTS….
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Disruptive technologies are
disrupting everything we know
Connecting the state (through
inter and intra state linkages and
connecting the state to citizens
bears huge opportunities to
overhaul service delivery models
for better performance
Failure to embrace and ready
ourselves the 4th Industrial
Revolution risks poor
performance in the long run
The SA Telecommunications
market is worth over R300-billion
& expected to grow exponentially
in the next 5yrs. LG is currently
not participating in this economy
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Outputs
1. SALGA strategy to
lobby for broadband to
become the 5th utility
developed by 31
March 2019
Activities
1.Develop a framework for municipal broadband
delivery
2.Develop lobby strategy on broadband
3.Engage relevant stakeholders for broadband
to become 5th utility
IF WE UNDERTAKE THESE ACTIVITIES…. WE WILL PRODUCE THESE
OUTPUTS….
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PROBLEM STATEMENTSouth Africa is generating approximately 54 million tones of general/household waste and less that 20% is being
diverted from going to landfill sites into recycling and other initiatives. The remainder goes to the landfill sites and
illegal dumping.
.
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Outputs
1. Research on internal
and external options
for waste
management by 31
March 2019
Activities
1.Commission research on the appropriate options
(internal/external) for the delivery of waste
management service
IF WE UNDERTAKE THESE ACTIVITIES…. WE WILL PRODUCE THESE
OUTPUTS….
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43 Councillors killed
between 2011 & 17 alone
Poor Human Development
Indicators including Life
Expectancy, Literacy, Quality
of Life, Purchasing Power
Parity, Inequality results in
various forms of discord
often ending in violence.
A lot of discord happens at
a localized level including at
the household level but
increasingly escalates &
aggregates at a societal
(community / municipal/
national) level resulting in
extensive loss of life, and
property
Domestic violence & child
abuse affects children
Protest for better access to
education
Protest for improved income
and purchasing power
Frustration led responses to
inadequate quality of life
1034 2 322710711182
173155191
164137152
2004 2006 2008 2010 2012 2014 2016
Violent Protest trend
(2004-2017)
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www.salga.org.za 36
Outputs
1. Social Cohesion /
Community
Development
Indicators published
by 31 March 2019
Activities
1.Develop social cohesion index (Indicators)
2.Establish and support strategic partnerships
to implement social cohesion programmes
3.Implement programmes that promote
knowledge sharing on social cohesion
IF WE UNDERTAKE THESE ACTIVITIES…. WE WILL PRODUCE THESE
OUTPUTS….
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2018/19 GOAL 1 : OTHER DELIVERABLES
1. Benchmarking on water and other municipal services;
2. Identification and promotion of municipal trade and investment opportunities for local economic
development;
3. Enabling policy and legislative framework for infrastructure service provision;
4. Optimal institutional arrangements for sustainable infrastructure services;
5. Enabling fiscal framework for Capex and Opex of municipal infrastructure services;
6. Funding model for municipal health services;
7. Local Government response report to HIV and AIDS,TB and STI;
8. Status report on the implementation of White Papers relating to Public safety and security in LG;
9. SALGA proposals on access and inclusion of vulnerable/designated groups; and
10.SALGA proposals on Sports, Recreation, Arts, Culture and Heritage.
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GOAL 2Good Governance and Resilient Municipal Institutions
38
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STRATEGIC GOAL 2Good Governance & Resilient Municipal Institutions
To strengthen oversight and accountability
and transparent leadership practices
To Modernise governance systems and
processes through the use
of digital technology and exploration of new models of interface with communities
To foster sound and productive
labour relations
To Professionalise
Local Government
Objective 2Objective 1 Objective 3 Objective 4
Context Linkages to
Global and national
Investing in
good
governance and
modernisation
of government
approaches,
strengthening
community
interface
mechanisms,
sound labour
relations and
Professionalisati
on
• National
Development
Plan
• Back to Basics
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FLAGSHIP PROJECTS
40
Goal 2:
Good Governance and Resilient Municipal Institutions
SALGA Leadership
empowered to lobby
more effectively
Engage media and
other public platforms
as part of the SALGA
lobbying and
advocacy strategy
Establish a Local
Government risk
management
system
Establish & support
implementation of an
accountability and
consequences
framework for Local
Government E.g. Establish accountability
indicators
Equitable & fair
institutional
performance based
remunerative regime for
Councillors & managers
Implementation
of a peer review
mechanism in
local
government
Implement
service
charter in
municipalities
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Lack of easily accessible, accurate and timely local governance and development data make it
difficult to anticipate challenges and intervene proactively.
Recent risks that could be anticipated better include: drought, financial distress, community
protest, labour unrest etc
Violent protest Incidents: 2000-2018
LIMITED CAPACITY TO ANTICIPATE RISK
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Outputs
1. Integrated data
management capacity to
enable risk detection in
LG by 31 March 2019
Activities
1. Repositioning of the Municipal Barometer
2. Establish LG risk monitoring system
IF WE UNDERTAKE THESE ACTIVITIES…. WE WILL PRODUCE THESE
OUTPUTS….
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33 municipalities mostly in the
red zone were supported on
various audit issues including
document management, Asset
registers, establishment and
operationalisation of Audit
Committees & Internal Audit
units, Risk Management etc.
Overall the results showed a
slight regression.
Amalgamated municipalities
fared poorly with majority of
them getting adverse or
disclaimer opinions
MSCOA remains a major
threat of regression to future
audit outcomes.
MUNICIPAL AUDIT OUTCOMES
2016/17 2015/16 2014/15 2013/14 2012/13 2011/12
Unqualified with no findings 15% 20% 22% 14% 8% 3%
Unqualified with findings 45% 44% 38% 39% 35% 38%
Qualified 23% 22% 23% 26% 30% 24%
Adverse 1% 1% 1% 1% 3% 1%
Disclaimer 9% 8% 10% 20% 24% 32%
Audit Not yet finalised 7% 0% 0% 0% 0% 0%
New Municipality 0 6% 6% 0% 0% 0%
7%0% 0%
0% 0% 0%
9% 8% 10% 20% 24%32%1% 1%
1%1%
3%
1%23%
22%23%
26%
30%24%
45%44% 38%
39%
35%38%
15%20% 22%
14%8%
3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
MUNICIPAL AUDIT OUTCOMES % (2012-2017)
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RED ZONE MUNICIPALITIES
44
Western
Cape
Mpumalanga Kwa-Zulu
Natal
Gauteng Eastern
Cape
Limpopo North West Free State Northern
Cape
Beaufort
West
Thaba
Chweu
Inkosi
Langalibalele
Dr Beyers
Naude
Ba-
Phalaborwa
Bojanala
District Letsemeng Phokwane
City of Cape
Town Msunduzi Mnquma Mogalakwena Ditsobotla Mohokane Joe Morolong
Knysna
Enoch
Mgijima
Mopani
District Madibeng Masilonyana Renosterberg
Kannaland
Walter
Sisulu Greater Giyani
Ngaka Modiri
Molema DM Ngwathe Siyathemba
Thabazimbi
Lekwa
Teemane
Maluti-A-
Phofung Kai Garib
Vhembe
District Mamusa Tokologo Ubuntu
Modimolle-
Mookgophong
Moses
Kotane Nketoana Kgatelopele
NW405 Mafube Tsantsabane
The number of RED Zone
municipalities has increased
slightly from 38 in 2015/16 to
42 in 2016/17 for various
reasons.
Generally, municipalities in the
RED Zone are facing
challenges relating to Annual
Financial Statements,
Procurement, Internal Control
deficiencies and mSCOA.
Additional challenges
including those that
municipalities did not have
much control over include:
Knysna Fires which contributed
to the AGSA audit not being
finalised timeously.
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33 municipalities mostly in the red
zone were supported on various audit
issues including document
management, Asset registers,
establishment and operationalisation
of Audit Committees & Internal
Audit units, Risk Management etc.
Overall the results showed a slight
regression.
Amalgamated municipalities fared
poorly with majority of them getting
adverse or disclaimer opinions
MSCOA poses a major threat of
regression to future audit outcomes.
MOVEMENT IN MUNICIPAL AUDIT OUTCOMES
Municipal Audit Outcome 2015/16 2016/17 Change Movement
Audit Not yet finalised 15 18 -3 Regressed
Disclaimer 25 24 1 Improved
Adverse 4 4 0 No Change
Qualified 63 65 -2 Regressed
Unqualified with findings 122 112 -10 Regressed
Unqualified with no findings 49 34 -15 Regressed
278 257
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Outputs
1. Accountability and
consequences
framework for LG
developed by 31
March 2019
Activities
1. Accountability and consequence management
framework for LG developed
2. Accountability index / barometer for LG developed
3. Monitor the impact of MPACs
4. Develop concept paper on performance based
incentives for POB and officials
IF WE UNDERTAKE THESE ACTIVITIES…. WE WILL PRODUCE THESE
OUTPUTS….
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Implementati
on of a peer
review
mechanism in
local
government
PROBLEM STATEMENT
Lack of a peer review mechanism (self appraisal mechanism) to enhance
knowledge sharing and peer learning and information exchange amongst and
in between municipalities in South Africa.
Need for municipalities to self appraise and cross reference amongst peers
Need for municipalities to share knowledge and experience amongst one
another.
Peer learning between municipalities will save a lot of resources in municipalities.
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www.salga.org.za 48
Outputs
1. Peer review
annual report
developed by
31 March 2019
Activities
1. Develop a peer review mechanism in local
government
2. Make a call for municipal voluntary participation on
the peer review
3. Support municipalities to implement the peer review
plan
4. Compile a peer review report
IF WE UNDERTAKE THESE ACTIVITIES…. WE WILL PRODUCE THESE
OUTPUTS….
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Facilitate effective
cooperative
management
system Engage media and
other public
platforms as part of
the SALGA lobbying
and advocacy
strategy
SALGA Leadership
empowered to
lobby more
effectively
PROBLEM STATEMENT
The role and profile of local government and its leadership is often misunderstood by the
public including the media. SALGA has paid too much attention in finding relevance with
its members (municipalities) and profile the role of SALGA in its intergovernmental
processes without advancing profiling what is the context of local government leadership
and the element of such a sphere of government in the country.
As a result SALGA is perceived as an association of unions without understanding that
SALGA is membership centric association established to:
Lobby, advocate and represent the interest of its members;
Build capacity to the local government leadership as well as its technical capacity;
Support and advice its members on a range of issues to assist them to execute their
mandate;
Build the profile the image of local government within South Africa and
international, and;
Serve as the custodian of local government intelligence and knowledge hub
As a result we have done very little to strategically profile the image of local
government within South Africa.
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Outputs
1. Annual impact
assessment report on
the level of SALGA’s
influence in IGR
processes by 31
March 2019
2. Reforms for
councillor support
and welfare to ensure
equity by 31 March
2019
Activities
1. SALGA to better influence the agenda of IGR Policy and legislative
platforms
2. Develop and implement training programmes to empower SALGA
leadership
3. Facilitate SALGA’s participation at relevant IGR structures
4. Facilitate SALGA’s participation in national & provincial legislature
5. Engage media and other public platforms as part of the SALGA
lobbying and advocacy strategy
Activities
1. Facilitate engagements with COGTA to review policy and legislative
provision that limit the introduction of reforms for equitable councillor
support
IF WE UNDERTAKE THESE ACTIVITIES…. WE WILL PRODUCE THESE
OUTPUTS….
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In 2012 a SALGA HR practitioners conference
unanimously resolved that professionalism in the
sector is inadequate. Lack of professionalism has
direct impact on municipal performance. The
following are some of the challenges highlighted:
• Service delivery and other forms of protest;
• Low staff morale,
• Low productivity levels,
• High staff turnover,
• Adverse financial audit results.
• General instability within municipalities
In December 2016, SALGA and organised labour
signed a service charter, however many
municipalities have not begun implementing it.
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Outputs
1. Framework /
Policy on the
Service and
Behaviours
Charter
implemented in
municipalities by
31 March 2019
Activities
1. Develop and implement a framework on service and
behaviours charter for municipalities
2. Quarterly monitoring of compliance with service
charter and all other SALGBC Collective
Agreements
IF WE UNDERTAKE THESE ACTIVITIES…. WE WILL PRODUCE THESE
OUTPUTS….
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2018/19 GOAL 2 : OTHER DELIVERABLES
1. Determine and promote alternative innovative mechanisms to enhance inclusive governance & public
participation;
2. Lobby for the devolution of powers and functions;
3. Implementation of a Municipal Audit Support Program;
4. Apply the SALGA “Municipal Support and Interventions framework”, to provide for coherent and integrated
support to municipalities;
5. Conclude a multi-year salary & wage collective agreement in Local government;
6. To professionalise Local Government;
7. Strategic municipal human capital management;
8. Capacity building of councillors and officials; and
9. Leverage on selected municipal excellence (Good practices) to champion specified policy agenda.
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GOAL 3:
Financial Sustainability of Local Government and Greater Fiscal Equity
54
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STRATEGIC GOAL 3Financial Sustainability of Local Government and Greater
Fiscal Equity
To develop and support the
implementation of financial strategies for the long-term sustainability and viability of local
government
To support innovative revenue
enhancement strategies for local
government
To strengthen financial
management systems and
controls
Objective 2Objective 1 Objective 3
Context Linkages to
Global and national
Improvement of
financial health
of municipalities
through:
• A revised local
government
fiscal
framework
• Effective
revenue
management
and
enhancement
• Sound
financial
management
• National
Development
Plan
• Integrated Urban
Development
Framework
• Back to Basics
• Sustainable
Development
Goals
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FLAGSHIP PROJECTS
56
Goal 3:
Financial Sustainability of Local Government and
Greater Fiscal Equity
Lead a multi-
partner
process to
eradicate
municipal debt
(owed to and
by
municipalities)
Lobby for the
establishment
of a revenue
collection
agency
Lobby for an
equitable fiscal
system for
Local
Government
Lobby for the review of preferential
procurement framework to include
• A clause that prohibits
municipalities not to do business
with service providers that are in
arrears with their utility bill
• Provisions in the Executive Ethics
Code & PFMA financial
management of legislatures to
prohibit public representatives
management from owing
municipalities over three months
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DIVISION OF REVENUE: INCLUDING DEBT SERVICE COSTS
• We spend more on
interest on borrowing
than we transfer to local
government
• Debt service costs are
the fastest growing
portion of the budget
(growth of 10.5% per
annum vs. 9.1% for local
government).
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KEY CONDITIONAL GRANT EXPENDITURE (2011 - 2016)(S.71 CONSOLIDATION)
58
Grant name Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 June -17
Expenditure as a % of allocation
Municipal Infrastructure
Grant78 84 85 95 92 93 92
Public Transport
Infrastructure Grant56 49 82 84 85 N/A 88
Integrated National
Electrification Grant88 93 81 81 105 90 99
Neighbourhood
development partnership
grant
49 95 92 88 72 72 69
Municipal Systems
Improvement Grant93 101 58 98 95 92 -
Financial Management
Grant104 99.8 96 98 94 94 94
In 2016/17 Municipalities reported expenditure
of R26 billion (86.7 per cent) against
the total conditional grant allocation
of R30 billion as at 30 June 2017.
Aggregated year-to-date total
expenditure for Metros amounts to
R212.8 billion of the adjusted
expenditure budget of R233 billion.
Consumer debt amounted to R128.4
billion as compared to the R128.3
billion reported in the previous
quarter.
The overall expenditure reported by
municipalities as at the end of the
2016/17 financial year is 87.5 per
cent against the R29.8 billion
transferred to municipalities.
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MUNICIPAL DEBT
Municipal debt – which
includes both non-current
and current liabilities
currently sits at R128
billion.
With total assets worth
R737 billion, that translates
to a debt ratio of 29%.
In other words, 29 cents of
every rand used to finance
municipal operations was in
the form of debt.
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OPERATING REVENUE AND EXPENDITURE GROWTH
Expenditure growing faster than the ability to generate revenue
Operating revenue grew by 4.3% while
Operating expenditure grew by 4.6%
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CHALLENGES IN MUNICIPAL REVENUE COLLECTION
Municipalities are
unable to exercise
credit control in
Eskom ‘supply
areas’ which has a
negative impact on
municipal revenue
generation and
sustainability
Collection rates in
municipal supply
areas are in
general much
higher than in
‘Eskom supply
areas’ as
illustrated in the
example of
Overstrand
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Outputs
1. Reviewed fiscal
reforms by 31
March 2019
2. Alternative
revenue
generation
streams by 31
March 2019
Activities
1. Conduct research on fiscal reforms as introduced by national
government
2. Develop SALGA proposals for the review of the fiscal architecture
for local government
3. Lobby relevant stakeholders (including consultation with member
municipalities) such as BF, NCOP, SCOA for the review of fiscal
reforms
Activities
1.Identify alternative ICT and innovative revenue streams for
municipalities
2.Support municipalities to implement alternative revenue streams
3.Develop a tariff model benchmark linked to different service
standards for municipalities
IF WE UNDERTAKE THESE ACTIVITIES…. WE WILL PRODUCE THESE
OUTPUTS….
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Outputs
1. Municipalities
supported to
manage debt
owed to and by
municipalities
by 31 March
2019
Activities
1. Gather information on the debts owed to municipalities;
2. Classification of debts (business, residential, government & staff)
3. Identify relevant stakeholders (multi-partnership approach) to
eradicate debt to municipalities
4. Together with stakeholders, develop strategies for differentiated
support for municipalities on debt management
5. Establish a revenue collection agency
6. Develop a position on the amendment of relevant legislation
relating to debt management and revenue collection
o (compel all state employees, entities, all public office bearers,
etc not to be in arrears on their municipal bills
o SCM regulation and PPF to include a clause that prohibits
municipalities not to do business with service providers that
are in arrears
IF WE UNDERTAKE THESE ACTIVITIES…. WE WILL PRODUCE THESE
OUTPUTS….
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FINANCING THE PLAN
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www.salga.org.zawww.salga.org.za
BUDGET PARAMETERS
• Medium term budget for 2018/19 – 2021
• Aligned to CPI as projected to National Treasury
• Operating Expenditure for year 1 = R637 Mill
• Membership levies for Year 1 = R560 Mill
• The formula remains the same as in prior years
R thousand
Budget Parameters 2018/19 2019/20 2020/21
Administrative Costs Growth Rate - Projected Consumer Price Index (CPI) 6.2% 5.9% 5.6%
Employee Costs Growth Rate - Projected Consumer Price Index (CPI plus 100 basis points) 7.2% 6.9% 6.6%
Operating Expenditure R 636 973 R 674 554 R 712 329
Total Revenue (incl. Interest received) R 647 602 R 674 057 R 716 146
Early Settlement Discount - Estimation based on prior year take up R 9 000 R 9 000 R 9 000
Net Membership Levies R 560 672 R 597 703 R 636 296
Government Grant - Executive Authority R 33 100 R 34 954 R 38 449
Medium Term Estimates
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www.salga.org.za
THANK YOU
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