Report to the Select Report to the Select Committee on FinanceCommittee on Finance24 October 2008

BackgroundBackground15 – 17 July 2008 meeting with

SCOF, sector departments and 12 municipalities

Chairperson ruled:◦H&LG will be the lead department

with Provincial Treasury as co-chair to:

◦Convene other stakeholders e.g. dplg, National Treasury, DBSA, DME, Eskom and Districts

◦Draft comprehensive action plan◦To meet on 6 August 2008 at 09:00

Report backReport backH&LG met with Eskom on 6

August 2008Issues discussed were:

◦Khai Ma municipality (Witbank community) Eskom promised electricity supply – to date nothing in place

◦Different regional offices that service the Northern Cape and the difficulties that creates

◦Reporting template for municipalities

Report backReport backMeeting held on 11 August 2008 Attended by:

◦DBSA◦H&LG◦The dplg◦Provincial Treasury◦DWAF◦Pixley Ka Seme DM◦Frances Baard DM

DME was invited, but did not attend

Report backReport backOBJECTIVE OF THE MEETINGTo develop a comprehensive

action plan by way of clustering issues

4 issues identified◦Financial ◦Institutional◦Powers and functions◦Intergovernmental

FinancialFinancial Issues raised

◦ Audit outcomes◦ Financial systems◦ Budget formats◦ Credibility of budgets – revenue sources

Response to the above issues◦ DBSA to assist with financial systems and

training of personnel◦ Provincial Treasury (PT) to assist with budget

formats◦ PT to do analysis of budgets – desktop study –

thereafter to visit and engage municipalities on their budgets

◦ H&LG to give hands-on support to municipalities re the audit outcomes

InstitutionalInstitutional Issues raised:

◦ Difficulty in attracting people to the NC and specific certain smaller municipalities

◦ Financial packages offered by the municipalities – cannot afford high packages

Response:◦ Retention policies to be developed◦ Marketing of the province – to attract more people,

e.g. to get away from the rat race – move to NC – quite, safe, etc.

◦ Approach mining houses to assist in skills transfer◦ SALGA to assist w.r.t. political interference◦ Analysis of organisational structures, personnel

budgets, availability of skills, statutory requirements, what positions municipalities must have

◦ Shared services should be considered

Powers and functionsPowers and functionsIssues raised

◦Accreditation for housing◦Functions done by municipalities

without receiving the funds (unfunded mandates) Roads Environmental health

Response◦H&LG will take the lead to establish the

power and functions of municipalities◦PT will look at the funding w.r.t. roads

and health

IntergovernmentalIntergovernmentalIssues raised

◦Planning – IDP rep forums not attended by sector departments

◦Alignment of IDP, PGDS, NSDP, DGDS, etc.

Response◦H&LG to take the issue up at the HOD

Forum to re-iterate the importance of sector departments’ attendance and participation in the IDP Rep Fora

◦Alignment being addressed by the IDP engagement process

Follow up meeting held 7 Follow up meeting held 7 October 2008October 2008Present

◦dplg◦H&LG◦Provincial Treasury◦DWAF

Purpose of the meeting◦To report on progress on the action

plan and to schedule activities

Karoo Hoogland LMKaroo Hoogland LMVisited by PT and H&LGNeed a lot of supportH&LG deploying IDP people 1 week

per month to assistPT assisted LM to compile their budgetDBSA deployed financial expert,

assisted with 2 computers as well as training

MM & CFO posts still vacantDWAF assisted through their water

services capacity building programme

Karoo Hoogland LMKaroo Hoogland LMResolved that:

◦PT to send official to assist this municipality

◦H&LG to continue with support re IDP

Kamiesberg LMKamiesberg LMDWAF has done feasibility study on

drinking water quality, report will be forwarded to H&LG

LM not yet visited by IDP team, will happen by mid Nov

MEC LG wants to establish team to investigate institutional arrangements in LM

DBSA deployees struggling with LM as they are not co-operative

Kamiesberg LMKamiesberg LMResolved that:

◦A meeting be scheduled between senior officials of H&LG, PT, DM and LM by mid November 2008 to resolve issues raised

Nama Khoi LMNama Khoi LMH&LG and PT visited this LMPT looked at the disjucture between

salary bill and service delivery Following aspects were questioned

◦The use of 35% as the benchmark◦The credibility of the budget◦The deviation from objectives

LM needs to increase its revenue to balance the relationship between salaries and service delivery

Nama Khoi LMNama Khoi LMJob creation programmes to

improve the livelihoods of its communities and in such enable them to pay their municipal bills

Namakwa Water Board problematic◦DWAF ordered an investigation, awaiting the outcome thereof

◦R 70 – 90 m needed for the upgrading of pipeline

Khara Hais LMKhara Hais LMResolved that:

◦A meeting to be convened by mid November to engage Province and the Municipality at senior level at the credibility and sustainability of the budget, organisational structure and service delivery

Kgatelopele LMKgatelopele LMStill awaiting approval of social

labour plans from DMEResolved that:

◦H&LG to follow up with DME on the above issue

Siyancuma LMSiyancuma LMMeeting was held with water

association and agreed that the tarrif raise will be phased in over 5 years

Lot of support provided by H&LG as well as PT in terms of the implementation and enforcement of policies

Investigation needed on the tarring of the road between Douglas and Hopetown as this might have huge inpact on the local economy

Siyancuma LMSiyancuma LMResolved that:

◦PT to contact TRPW to establish the possibility of tarring of the road and if Pixley Ka Seme Dm has listed the road as a priority

◦TEAM to visit LM by mid November

Mier LMMier LMH&LG's IDP unit visited LM to assist

in the improvement of the IDPResolved that:

◦PT to visit LM by mid November to look at credibility of budget and optimising assets and potential – this will coincide with visit to Khara Hais LM

◦DWAF to meet MM to discuss water issues

Frances Baard DMFrances Baard DMConcern was the R57 m reserve of

this DMPT investigated the fund, will give

breakdown thereof once clarity is provided by DM re the clearing of books

Credibility of budget was also investigated

Phokwane LMPhokwane LMLM intents to take over the water

functions from Sedibeng Water Services

Progress with regards to the SLA on the provision of services to Pampierstad is not certain – H&LG to investigate matter

LM did not submit Sec 71 reports – PT need firm commitment from LM to provide information required

Magareng LMMagareng LMNo co-operation from LM with

regards to intergovernmental relations

Lot of resources allocated to this LM, still not substantial improvement

Resolved that:◦TEAM need to set up meeting with

CFO to discuss the mentioned issues

Dikgatlong LMDikgatlong LMOutsourcing of SCM still a concernResolved that:

◦PT to visit this LM by mid November

Sol Plaatje LMSol Plaatje LMNT visited LM to engage on the

audit outcomesResolves that:

◦TEAM to visit municipality with NT with regards to the remedial plan of the audit report

◦TEAM to convene meeting to discuss the plan, credibility of budget, loan of R35 m and the overpayment of councillors

Resolutions affecting all Resolutions affecting all municipalitiesmunicipalitiesH&LG to follow up on the progress of

appointment of MM s and CFOs at all municipalities where there are vacancies

By the 2nd of November 2008, the TEAM will look at issues at the municipalities, credibility, organisational structure link to service delivery output

The DPLG is to provide support;The dates of the visits is to be made

available well in advance

Resolutions affecting all Resolutions affecting all municipalitiesmunicipalitiesSince the provincial capacity is

limited, the TEAM will explore possibilities to bring another institution on board and look at the organisational structures of the 12 municipalities

TEAM to look at the grants FMG, MIG, MSIG and why municipalities are not spending and understand why they don’t spend this money

Resolutions affecting all Resolutions affecting all municipalitiesmunicipalitiesDWAF to continue its support The Provincial Capacity Building

Steering Committee to be co-opted on the team with the view to focus on capacity building

To hold a two day workshop to discuss the grants with municipalities

To hold a workshop in each district for councillors to equip themselves for their oversight role

Thank youThank you