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5 June 2008

The dplg’s Policy Review Process

The policy review of the system of provincial and local government is arguably one of the most significant reviews that government has undertaken. Many lessons have been learnt with respect to the functionality of the system of provincial and local government during the last thirteen years of practice. These lessons have demonstrated the complexity of the cooperative governance system and its impact on the ability of the three spheres to achieve their developmental mandate. This policy process has generated discussions and received inputs from various sectors of society.

The Ministry and Department of Provincial and Local Government have tabled in Parliament a formal report on the implementation of the Intergovernmental Relations Framework Act since its inauguration in 2005. This report will contribute to the review process and it outlines, amongst other things:

* the general conduct of intergovernmental relations in the Republic
* the incidence and relevance of intergovernmental disputes and
* emerging practices and remaining challenges.

General conduct
All intergovernmental forums have now been established in districts, municipalities, provinces and in relevant national government department in order to enable co-ordination across government. It is clear that the strengthening of oversight and support by provinces can help to mediate intergovernmental tensions. Oversight, monitoring and early warning systems play a critical role in helping to make co-operative governance work more effectively.

Some challenges
The concurrency of functions makes the alignment of policy, implementation and financing complicated. At the heart of the inter-governmental system, and from where tensions may also arise, is the inter-governmental fiscal system. But there is evidence too in the report that the strengthening of the fiscal reporting and regulatory environment over the last decade has resulted in improved predictability and stability in the field of intergovernmental fiscal relations and budgeting. The revenue sharing model (effected by DORA), and the provisions of the Public Finance Management Act (PFMA), Municipal Finance Management Act (MFMA) and the Municipal Systems Act, were all introduced to provide the necessary financial interfaces with other spheres. Alignment between policy and planning to be implemented at local level cannot be achieved without intergovernmental budgetary co-ordination.

Furthermore, enhanced national oversight of the spending of conditional grants at provincial or metro level is a necessary and positive factor in promoting correct fiscal and intergovernmental procedure.

Managing disputes
As the section on intergovernmental disputes indicates, there are clear legislative and policy directives for the management of intergovernmental disputes, largely focusing on avoiding litigation, negotiating a settlement and seeking assistance at a political level. There are also supporting mechanisms to pre-empt the declaration of an intervention, such as deployment of expertise in municipalities that have been identified in the Project Consolidate initiative.

Performance indicators
The dplg will, from 2008/09 onwards be working with all three spheres to progressively institutionalise qualitative monitoring and measurement of the conduct and practice of Intergovernmental Relations (IGR). A set of IGR indicators have been developed for this purpose.

Parallel to this practical work, more substantive policy questions will be addressed in the proposed White Paper on Provincial and Local Government. We intend to publish a draft paper after consultation with Cabinet in July 2008.

Policy on Traditional Leadership and Traditional Communities
Previously, we also indicated the need for increased support to the Institution of Traditional Leadership and the work that is currently being undertaken to support traditional communities. The key bodies involved are the following:

* The Commission on Traditional Leadership Disputes and Claims
* The National House of Traditional Leaders
* The Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities.

Regarding the work of the Commission on Traditional Disputes and Claims, the completion of a report on the first phase of this exercise was publicly announced by Minister Mufamadi and the commission last month. In this financial year, we will continue to support this commission and attend to the implications of the report. Furthermore, we will also be introducing legislative amendments to the Traditional Leadership and Governance Framework Act in order to address the legislative matters with regard to Kingships and respective councils, amongst other issues. Also, we have proposed some amendments to the National House of Traditional Leaders Act, in order to bring in line the work of the National House with Provincial houses and clarify the powers, functions and duties of the National House, amongst other things. Cabinet has approved these proposals for publication on 28 May 2008 and we will initiate a public call for comments from Monday, 9 June until Friday, 4 July 2008.

At provincial level all the affected provinces have now been able to develop provincial-specific legislation that is informed by national legislation. This legislative framework and the programme of support seek to provide a sound basis for restoring and recognising the role of this institution in our society. We have also finalised the policy on Khoi-san communities and traditional leadership. This work was undertaken with the relevant stakeholders. Recently, our ministry and department held final consultations with the National Khoi-san Council and we will be presenting the final document to Cabinet in this financial year.

Local Government Strategic Agenda

The ‘Project Consolidate’ initiative (2004 to 2006) has enabled the three spheres of government to gain a better understanding of the challenges that face local government. As a result, the dplg has been able to work with other stakeholders and mobilise for higher levels of hands-on support to municipalities. We have mainstreamed this hands-on approach throughout the different spheres of government and in a common strategic agenda for the current term of local government that will end in 2011.

Monitoring, Evaluation and Capacity Building in Municipalities
Three years after the first deployment of technical expertise to municipalities, we have gone back to the outcomes of the aforementioned audit, and are pleased to account that this intervention, and its approach, has indeed made a difference.

National sector departments, namely the Department for Provincial and Local Government (dplg), the National Treasury, the Department of Water Affairs and Forestry (DWAF), and the Department of Environmental Affairs and Tourism (DEAT), collectively have mobilised 626 technical experts in support of municipalities. Perhaps most notable are the 503 Financial Management Interns supported by the National Treasury through the Financial Management Grant, who have been exposed to the municipal environment and are continuously being absorbed by the local government sector. The Department of Water Affairs and Forestry has also dedicated 51 technical experts to focus on water related services, particularly in the Free State province, assisting municipalities and the province to address their unique challenges.

Donor agencies, professional associations and the private sector have collectively deployed 494 technical experts, including 133 young professionals, deployed through the Siyenza Manje Programme. These young professionals, with engineering qualifications, but limited experience, have been gathering the relevant experience that will allow them to be continuous contributors to the effort to eradicate infrastructure backlogs in municipalities.

In combination, a total of 1 120 deployments have been made. The mobilisation of this magnitude, over a three period, has not been a menial task, and we thank all the respondents to this call to national service, for their responsiveness and contribution.

The evidence of this progress can be seen in the changing profile of low capacity municipalities that we identified in 2004. At the time of the launch of this intervention, and with regard to the Key Performance Area (KPA) of basic services, the following facts were the basis of our call for an increased appreciation of the capacity challenges in municipalities and the need for hands-on support:

* In 116 of the 283 municipalities, 60 percent or more of the households did not have access to formal housing. Three years later, that number has been reduced to 87, (a 33 percent reduction in the number of municipalities).
* In 155 of the 283 municipalities, 60 percent or more of the households did not have access to water in their yards or in their dwelling. Three years later, that number has been reduced to 115, (a 35 percent reduction in the number of municipalities).
* In 122 of the 283 municipalities, 60 percent or more of the households did not have access to electricity, at least for the purpose of lighting. Three years later, that number has been reduced to 45, (a 71 percent reduction in the number of municipalities).
* In 203 of the 283 municipalities, 60 percent or more of the households did not have access to sanitation at the standard of a flush toilet, a septic tank sanitation system or a chemical toilet. Three years later, this number has been reduced to 150, (a 35% reduction in the number of municipalities).
* In 182 of the 283 municipalities, 60 percent or more of the households did not have access to refuse removal at least once a week. Three years later, this number has been reduced to 159, (a 14% reduction in the number of municipalities).

By initiating a structured monitoring and evaluation system, we are now in a better position to report to Parliament on municipal performance. In addition to the normal Annual Reports of the dplg, we have now been able to submit to Parliament a Municipal Performance Report according to the provisions of the Local Government: Municipal Systems Act, 2000.

Development Planning and Institutional Development

Efforts are being made towards improving the alignment of planning across the three spheres of government. Some municipalities were not able to adopt their Independent Development Plans (IDPs) by the start of the municipal financial year in the past years. This situation has, to some extent, now improved as a result of direct hands-on support programmes to municipalities.

Support has been directed at improving the quality of these plans based on indicators and criteria that are reflected in the IDP Credibility Evaluation Framework. These criteria include the existence of mechanisms for community participation, budget commitments and expected outcomes over the five year period.

A Winter School will be open to planners from municipalities that have poor IDPs and will be held in July 2008 at the University of Pretoria. Furthermore, we have initiated a partnership with the South African Planning Institute (SAPI) on a mentoring programme for municipal planners on Development Administration.

The adoption rate of IDPs for the 2008/09 financial year will only be known in July 2008. The findings of the 2008/09 provincial IDP analysis sessions will form the core of the Sector Master Plans. These will be work-shopped with the various sectors from July to September 2008.

The dplg has introduced initiatives to enhance performance management systems within municipalities. Following the publication of the Performance Management Regulations in 2006, the vacancy rates at management level are starting to decrease. For example, the vacancy rate of municipal managers has decreased from 22% as at the end of September 2007 to 12% by 31 March 2008.

Financial Management and Viability
Good financial management remains a key challenge at a municipal level. Last year and in recent months, we have been working with the Office of the Auditor-General, National Treasury, provinces and municipalities, to address these challenges in the context of the Local Government Strategic Agenda. There are positive trends but a lot of attention by municipalities is required in this area. For example, the timeous submission of Annual Financial Statements (AFS) by municipalities improved from 69% to 81% as compared to the previous financial year. The establishment of Internal Audit Committees has marginally improved from 72% to 74%. In the previous municipal financial year 2005/06, two out of six metros received adverse audit opinions and in the following year 2006/07, no metro has received such an opinion.

Also, according to the analytical report by the Auditor-General of 179 municipalities, the number of municipalities that have received disclaimed audit opinions have reduced from 67 to 56. Also the number of municipalities receiving unqualified audit opinions has increased from 44 to 54. These trends point to the need for us to continue with our approach of targeted hands-on support and extraordinary efforts focused on financial management in municipalities. This requires high levels of commitment and accountability at both managerial and political levels in local government.

Disaster Management and attacks against foreign nationals
As you may be aware, our national disaster management centre is working together with other provincial centres in order to co-ordinate the government’s programme on the recent attacks on foreign nationals and incidents of violence. These incidents are a serious indictment on our newly found constitutional democracy and must be condemned in the strongest possible terms. At the same time, it is clear that we need to address the nature of this problem and its symptoms within society as a whole and within government structures. We have identified the need to engage local communities, build social cohesion, civil consciousness and peaceful co-existence as idealised in our Constitution and the Bill of Rights. The Gauteng and Western Cape provinces last week have declared these areas as disaster areas according to the provisions of the Disaster Management Act of 2002.

At the same time it is important to improve our disaster management capabilities. This is one of the topics that is currently being deliberated upon in the Capacity Building Conference underway from today until Friday, 6 June 2008.

Our preparations for the FIFA 2010 Soccer World Cup are at an advanced stage. We have established a 2010 National Disaster Management Steering Committee and adopted a 2010 Disaster Management Policy document. To date, disaster management centres have been established in five of the nine host cities and disaster management host city plans are in place in seven of the host cities. We aim to support the remaining host cities to establish these centres.

All these initiatives have been presented in a formal Report on Disaster Management has been tabled in Parliament.

Public Participation
The thrust of the dplg’s support effort in respect of public participation has focused on improving the involvement of communities in local decision-making, and in the implementation of development programmes. Some municipalities have managed to institutionalise public participation and communication systems in their daily operations.

Support to the ward committee system has seen a greater focus on community-driven development with many municipalities committing resources to ward functioning and ward/community based planning. Accredited training material was developed and launched to assist in the ward committee capacity building process.

In the conference that is underway, we are presenting the following important documents:

The Guidelines on Multilingualism in Local Government
The Funding Model for Ward Committees
The National Capacity Building Framework (NCBF)

These are all important actions to deepen public participation and empowerment processes in local communities.

Issued by: Department of Provincial and Local Government
5 June 2008
Source: Department of Provincial and Local Government (http://www.dplg.gov.za/)