MEC Nomtsama Miga: North West Cooperative Governance, Human Settlements and Traditional Affairs Prov Budget Vote 2022/23

MEC of Cooperative Governance, Human Settlements and Traditional Affairs Hon. Nomtsama Lenah Miga, Member of the Provincial Legislature North West Province, Cooperative Governance Vote 9

Speaker of the Provincial Legislature, Basetsana Dantjie
Deputy Speaker, Ntsetsao Motsumi
Honourable Members of the Provincial Legislature
Premier, Bushy Maape
Members of the Executive Council
Executive Mayors and Mayors
Chairperson of SALGA-NW, Cllr Khumalo Molefe
Chairperson of the House of Traditional Leaders, Kgosi Moshe Mabe
Dikgosi tsa rona tse di tlotlegang
Acting Heads of Department of Cogta and Human Settlements
Our deployees in municipalities
Distinguished guests
Members of the Press
Baagi ba North West, dumelang!

Madam Speaker, this policy statement takes place whilst the Province and the country is still dealing with the aftermath of the recent disaster which hit few parts of the country. For example Deelpan in Tswaing Local Municipality, areas in KwaZulu-Natal, the Eastern Cape Province and Postmasburg in the Northern Cape were affected. 

As the Province, we could not just stand and watch when the people of KwaZulu-Natal lost their family members, loved ones and belongings as a result of the floods. Mabogo dinku a thebana….  KwaZuluNatal was declared a Provincial State of Disaster by the National Disaster Management Centre in line with Sections 23 and 41 of the Disaster Management Act 2002 (Act No. 57 of 2002). 

In our response to the disaster, Honourable Members, the Provincial Executive Committee (EXCO) resolved to dispatch a team of fire fighters and engineers who have been trained in urban search and rescue to join the mission to recover the bodies of people who had been washed away during this calamity brought on by floods.

On behalf of the Province, Honourable Premier, I want to take this opportunity to extend our heartfelt appreciation to the team under the stewardship of Mr Daniel Montshusi Mutloane from the Department of Cooperative Governance and Traditional Affairs.

Madam Speaker, our Province was not spared from the disaster caused by the floods as we also experienced heavy rains towards the end of last year until recently which left most areas affected and submerged in water.

The villages of Deelpan, Witpan, Brooksby, Kaalpan and Lombaardslagte in the Tswaing Local Municipality were the worst affected. In Deelpan more than a thousand people were displaced at the height of the floods and had to be evacuated and accommodated in various places, while most have returned home due to water which has now subsided. Forty two (42) are still in temporary shelters. 

We are mostly grateful for the contribution made by our social partners, i.e. the Gift of the Givers, Shoprite and many more other donors for holding our hand and ensuring that the affected communities are able to continue with their lives.

The Department continues to provide Section 154 support to municipalities.  In Ditsobotla, Maquassi Hills and Mamusa Local Municipalities Section 139(1)(b) and (c) interventions were succeeded by a comprehensive support package to enable these municipalities to discharge their mandate of providing quality services to communities within their area of jurisdiction.

Intervention in municipalities

Mmusakgotla, the Department of Cooperative Governance and Traditional Affairs has a Constitutional responsibility of ensuring that municipalities are able to manage their own affairs and provide basic services to communities. 

During 2021/2022 (financial year), the following municipalities were placed under Section 139 (1)(b) intervention : Madibeng Local Municipality, Ramotshere Moilwa Local Municipality, JB Marks, Ratlou and Tswaing. In spite of this there was resistance in some municipalities.

Mmusakgotlha, the decision to put the Tswaing municipality under Section 139 (1)(c) just before the November 1 local government elections was I believe, a decisive one.  It had to happen although it might have seemed unpalatable to some, it was very necessary.

The intervention in municipalities came to an end after the local government elections and expectation is that the current councils will implement the recommendations on the close out reports.

Moses Kotane, Ditsobotla, Mamusa and Maquassi Hills and recently Kagisano Molopo Local Municipalities attracted a lot of media attention due to instability in Council and disruption of service delivery, irregular appointment of senior managers.

The Premier appointed a team comprising of three MECs, i.e. Provincial Treasury, Community Safety and Transport Management (COSTMA) and lastly the MEC for Cooperative Governance, Human Settlements and Traditional Affairs to intervene decisively in the five (5) municipalities to bring the situation under control. 

Engagement sessions have been held with both political and administration leaders of these municipalities and the Mayors have been furnished with reports on issues which they must attend to and they must provide progress reports to the MEC for Cooperative Governance, Human Settlements, Human Settlements and Traditional Affairs on regular basis.

Madam Speaker, I am pleased to announce to this house that following the intervention, these municipalities are relatively stable.  An Acting Municipal Manager has been deployed to Maquassi Hills whilst the recruitment process of a substantive Municipal Manager is underway. 

We also deployed an Acting Municipal Manager in Mamusa whose contract will come to an end at the end of June 2022.The Department is engaging Ditsobotla LM on solutions regarding filling of posts and service delivery.

Furthermore our team continues to give support in Tswaing which now has an Acting MM, and various functional experts to turn the situation around under the leadership of a Provincial Executive Representative, Mr Moatlhodi Dilotsotlhe .  We are currently monitoring the implementation of the court order to restore the appointed Speaker and Mayor in KagisanoMolopo.

Appointment of senior managers in municipalities

Most of the contracts of the Municipal Managers will come to an end this year owing to the start of the 5th term of office of new council after the local government elections on 01 November 2021. We implore on the current leadership in Councils, to appoint people with the necessary qualifications, skills and expertise.

In responding to Priority no 1 of the National Development Plan 2030 of creating “a capable, ethical and developmental state”, we will work with municipalities to ensure that suitably qualified personnel are appointed especially at senior management level. We will not hesitate to approach all the necessary institution, including our courts to have any irregular appointments challenged.

CAPACITY BUILDING FOR MUNICIPALITIES

The 5th Local Government elections ushered in the new term of office of councillors.  In partnership with the South African Local Government Association (SALGA), we rolled out an induction programme for the new councillors to prepare them for their new roles and responsibilities and to empower them on post-election obligations which include: (1) Integrated Councillor Induction Programme (ICIP) jointly with SALGA; (2) guidance on establishment of ward committee; (3) induction of ward established committees and (4) the roll-out of 2021 Municipal Staff Regulations.

All Ward Committees have been established and trained. We are committed to continue with the induction of outstanding Ward Committees in an effort to strengthen their functionality so that they serve our communities diligently.  We will continue to monitor and support Ward Committees working through the Speakers of various Councils.

In strengthening the functionality of Ward Committees, we commit to facilitate the establishment of District Ward Committee Functionality Support Forums (DWCFSF) to give impetus to the District Development Model (DDM). In addition, to support communication of the citizens with all Organs of State, we will roll-out and mainstream the implementation of GOVCHAT software in municipalities.

Financial Management/Municipal Public Accounts Committee (MPAC)

The new members of the Municipal Public Accounts Committee (MPAC) have been trained on their new roles and responsibilities, following the induction programme of all Councils coordinated by the South African Local Government Association (SALGA). Our expectation is that the MPACs must exercise their oversight over the Executive functionaries of Councils and ensure good governance in our municipalities.

For the 2022/23 financial year, a specific focus will be given to the newly established MPACs and their support staff by capacitating them on their oversight roles and responsibilities. This will include the appointment of 1 researcher per district, which will run as a pilot for a year. Over and above this, having signed out the determination of upper limits municipalities shall be required to provide tools of trade to empower MPACs to conduct effective oversight over Executive actions and Annual Reports and the assessments of Unauthorised, Irregular, Fruitless and Wasteful (UIF&W) expenditure.

Audit outcomes of municipalities

Madam Speaker, the municipal audit outcomes for 2019/2020 painted a bleak picture about our Province. A total neglect of internal controls and discipline has been cited as the reason for financial and operational collapse and weakened governance processes which led to lack of accountability.

Out of 22 municipalities in the Province, only three (3) received an unqualified audit opinion and they are: (Moretele and Matlosana local municipalities and Dr KK District municipality). Only two (2) new improved from qualified to unqualified during the 2020/21 financial year.

A further three (3) municipalities moved from disclaimer to qualified audit opinion, i.e. Dr Ruth Segomotsi Mompati District Municipality and Lekwa-Teemane and Rustenburg local municipalities. We must move to a situation where all municipalities receive clean audit opinions.

A concern must be registered on the continuous adverse audit opinion by Ngaka Modiri District Municipality. We commit to initiate a separate programme that shall help this municipality to improve its performance.

Honourable Members, it cannot be business as usual that across the length and breadth of the Province funds get spent and there is no accountability, and no consequence management whatsoever. Ka Setswana re ka re ga se kwa ga-mmapereko….  We will work closely with the Department of Finance, the Auditor General to turn the situation around.

The Department will continue to conduct detailed assessments as per requirement of Municipal Financial Management Act (MFMA) section 131 and provide feedback to municipalities on corrective measures to be taken.  We are concerned,  Honourable Members, about the non-implementation of the Post Audit Action Plans (PAAP) by municipalities which results in poor audit outcomes.

We will therefore, have to monitor the implementation of PAAP through a number of structures such as the Internal Audit, Audit Committees and MPACs and follow up on the implementation of recommendations management in order to address audit. This shall also be monitored at MUNIMEC level and on a quarterly basis reports of progress will have to be tabled at Councils.

Revenue management and enhancement

Municipalities are still faced with a challenge of poor revenue collection which has a direct impact of their ability to provide services to communities. Honourable Members, we are worried about the non-payment of municipal services (rates and taxes) by debtors especially government departments, this category of debtors are really not supposed to owe municipalities.

We have been engaging with government departments to facilitate the payment of outstanding debt and have raised the matter sharply with departments and there are those that committed to start servicing their debts.

The National Department of Cooperative Governance and Traditional Affairs (Cogta) is working with the National Department of Public Works and Infrastructure to facilitate payments of rates and services.

The department will enlist the services of an expert to assist five (5) municipalities: namely; Kgetlengrivier, Ditsobotla, Mamusa, Maquassi Hills and Tswaing local municipalities with data cleansing exercise. The project is aimed at assisting municipalities to have accurate, complete and reliable data to ensure billing integrity.

Honourable Members, municipalities generate revenue through rates and taxes and I would like to take this opportunity to appeal to everyone who resides within the boundaries of a municipality, to do the right thing by paying their municipal accounts or to at least enter into a payment arrangement with their local municipalities.

We have already assisted Mamusa and Naledi local municipalities with the reconciliation of the valuation with the financial management system in order to facilitate a complete interface between the financial system and the valuation roll.

Source: Government of South Africa