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Presentation to Select Committee on Upliftment of section 139 1(b) of the constitution in Ngaka Modiri Molema District Municipality, North West Province.

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Presentation on theme: "Presentation to Select Committee on Upliftment of section 139 1(b) of the constitution in Ngaka Modiri Molema District Municipality, North West Province."— Presentation transcript:

1 Presentation to Select Committee on Upliftment of section 139 1(b) of the constitution in Ngaka Modiri Molema District Municipality, North West Province Presenter: Hon. MEC P Sebegoe Date : 09 February 2011 Venue : Parliament Committee Room - Cape Town

2 Presentation outline 1.Purpose 2. Background 3. Terms of Reference 4.Achievements 5. Challenges 6.Section 154(1) intervention 7.Recommendations 2

3 Purpose The purpose of this report is to inform select committe on Cooperative Governance and Traditional Affairs that section 139(1)(b) has been uplifted by National and Provincial Government and section 154(1) of the Constitution of the Republic of South Africa, 1996; No. 108 of1996 is being implemented. 3

4 Background A section 139 (b) notice was served on the District Municipality on the 1 July 2009 by the North West Provincial Executive Council, declaring an intervention in the affairs of the municipality for a period of six months. An Administrator was appointed from the 1 August 2009 for a period of six months. The administrator appointed a Project Manager and a secretary to assist with the administration of the intervention. The intervention period was extended for one month to the end of January 2010 and then again for a further period of six months, to the end of July

5 Terms of Reference of the Administrator Normalisation of all labour related matters of the District Municipality. Implementation of the Auditors General’s report on the Brazil soccer project. Water and Sanitation provision in all Local Municipalities under the district Report on the validity and legitimacy of all recently awarded contracts. Report on possible fraud, related to endowment policies. Advertise and facilitate the appointment of a Municipal Manager and resolve all outstanding matters pertaining to previous Municipal Managers. 5

6 Achievements of the intervention Normalisation of all labour related matters LLF functions as an important link between labour and management. A new organogram was developed and approved together with the officials and the union, in line with the strategic plan adopted during August 2009 The SDBIP’s developed and performance agreements of the section 56 managers are signed and a new automated performance management system is up and running. 6

7 Achievements of the intervention cont.... Achievements of the intervention cont.... Disciplinary Hearings and Policies The CFO has decided to resign and the other disciplinary hearings of senior personnel are still continuing An investigation into the finance department has revealed a number of irregularities and 5 officials were charged and disciplinary hearings are continuing. Most of the policies of council was outdated and not implemented. Policies are reviewed and implemented on an ongoing basis. 7

8 Achievements of the intervention cont.... Achievements of the intervention cont.... Advertise & facilitate the appointment of MM & resolve all outstanding matters pertaining to previous MM’s The appointment of a Municipal Manager was not successful due to the period of appointment as stated in the advert The decision for a substantive MM to be appointed was left to the incoming new administration of municipal elections. Council resolved to appoint Mr Uys, the project manager as an acting Municipal Manager replacing Me Mbali as acting Municipal Manager. Cases against Mr Ramphele and Mose are still pending, all other outstanding matters concerning previous municipal managers were resolved. 04/02/2010 8

9 Achievements of the intervention cont.... Achievements of the intervention cont.... Implementation of the Auditors General’s report on the Brazil soccer project. The children were successfully returned and integrated into normal life. The officials, except for one whose case is still pending, involved in the agreement were successfully disciplined. Outstanding matters in respect of creditors were also resolved. A Report was submitted by the District to the Provincial public accounts committee as a respond to a number of questions raised by the chairperson. The District also engaged the chairperson of local government and traditional affairs portfolio committee on the matter. 9

10 Achievements of the intervention cont.... Achievements of the intervention cont.... Water and Sanitation provision in all Local Municipalities under the district A total number of 15 capital projects were successfully implemented and more capital projects are planned to be implemented during the 2010/2011 financial year. The Administrator also engaged in negotiations to obtain a loan from DBSA to enhance the capital budget to be able to move certain projects forward in an effort to expedite service delivery. Maintenance on sewerage works were extended to local Municipalities. Service providers were appointed to manage and maintain WWTW and to assist in desludging septic tanks. A number of Local Municipalities were assisted by making available vehicle and equipment to clean certain areas. 10

11 Achievements of the intervention cont.... Achievements of the intervention cont.... Report on possible fraud, related to endowment policies. No wrongdoings were found in these investigations and it was also confirmed by the police who investigated the case. Report on the validity and legitimacy of all recently awarded contracts. The process of investigating the awarding of the contracts is complete and District Municipality have instructed their lawyers to act on anomalies that were uncovered. The process is still continuing 11

12 Challenges identified by the District Administration The administrative function of council was once again compromised by strikes and an attitude of less is best. Section 56 managers are meeting regularly with their sections and the reports indicate that managers are still challenging the authority of Section 56 managers. Managers are representing junior staff and the line between management and union affairs are not always clear to managers. Guidance and training/advice are given to both Section 56 managers and other managers as an effort to solve their problems. Disciplinary action will have to be taken to ensure that officials understand that it is not business as usual. 12

13 Challenges identified by the District cont... Finance Department The finance department is still under capacitated. The acting CFO is doing her level best but she does not get support on senior level. Municipal Health The district municipality is responsible for the municipal heath services in the district. Progress on implementation is very slow but the appointment of a section 56 manager and the release of the manager responsible for health from that position should assist in expediting the matter. Finances to implement health services on an expectable level are however not available 13

14 Challenges identified by the District cont... Basic Service Delivery: Water Provision There is no accurate baseline information. District has to conduct services backlog study using the CDW. Lack of operations and maintenance Insufficient maintenance budget. This lack of operational funding result in the “knock effect”. The district relies on conditional grant funding such as MIG for capital infrastructure. Fragmented development due to poor planning. Due to the arid nature of the district some of the water schemes are currently failing to meet the demand, this challenge is exacerbated by growing demands in other areas. Lack of provision of a higher level of service for settlements that can afford paying for services. 14

15 Challenges identified by the District cont... Basic Service Delivery: Waste Water Treatment Works Consultants were appointed consultants to conduct assessments study and implement plans on managing the WWTW’s. The sustainability of this project is dependent on the assistance from locals and there are serious doubts if they will be able to manage the WWTW after the consultants have left. Sannieshof has provided the District Municipality with an alternative method of dealing with waste water that can benefit the community and job creation. The cost involved is very high and investigations into the feasibility of the project will start soon. 15

16 Challenges identified by the District cont... General Basic Service Delivery Challenges Lack of proper institutional arrangements in delivery of service. Outstanding business plans from local municipalities (WSP) as per the Interim Service Level Agreements Inadequate staff capacity (Geohydrologist, plant operators), the service delivery department is not staffed in line with the functions currently performed. Lack of a district shared staff retention and resource sharing strategy. Lack of policies and by-laws. No tariff structure. No proper asset management and maintenance plan. 16

17 Section 154 intervention Based on the above achievements of section 139(1)(b) by the administrator, Ngaka Modiri Molema District Municipality is well on its way to recovery. Most of the current problems experienced by the District Municipality are common to local government. But also acknowledging that the administration is, however, still very fragile and need guidance. Immediate uplifting of the intervention could result in eroding the gains that have been made so far. The Provincial Government intervened in terms of Section 154(1) of the constitution which gives National and Provincial Government the opportunity to assist local government in the spirit of Co operative governance, a chance to support and guide council without really intervening in its day to day operation. 17

18 Section 154 intervention cont... Council therefore appointed the current administrator in the position of acting municipal manager in August 2010 for a period of six months with instruction to assist council amongst other with the following:  Strengthen administration / management by specific training and workshops.  Implement policies and audit results regularly.  Institute disciplinary actions as a corrective measure.  Iinvestigate options for financing infrastructure development and where feasible Grant Funding. The contract of the Acting Municipal Manager expired on the 4 February 2011 and a new acting Municipal Manager is appointed 18

19 Recommendations It is recommended that: Select committee notes the upliftment of the intervention in terms of Section 139 1(b) of the Constitution of the Republic of South Africa. Select Committee notes the progress made and outstanding challenges Select Committee notes the Provincial Exco’s. commitment to support and assist the council in performing its constitutional obligation in terms of section 154(1) of the constitution of the Republic of South Africa. Section 154(1) intervention progress(close-out) report to be submitted to select committee in due course 19

20 THANK YOU 20


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