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MADIBENG LOCAL MUNICIPALITY Status Report on the interventions to the NCOP Select Committee on Cooperative Governance and Traditional Affairs 15 July 2014.

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Presentation on theme: "MADIBENG LOCAL MUNICIPALITY Status Report on the interventions to the NCOP Select Committee on Cooperative Governance and Traditional Affairs 15 July 2014."— Presentation transcript:

1 MADIBENG LOCAL MUNICIPALITY Status Report on the interventions to the NCOP Select Committee on Cooperative Governance and Traditional Affairs 15 July

2 Overview of the Presentation 2 1.Background on Madibeng LM previous interventions; 2.Ministerial Task Team Report 3.Section139 intervention in Progress report on section 154 support to the municipality

3 Background to Interventions in Madibeng LM: First section 139 intervention in Madibeng Local Municipality 3 (a) Since 2009, and even before, Madibeng Local Municipality has been under severe financial and governance challenges; (b)The challenges faced by the municipality were due, in part, to poor decision making resulting in a high degree of non-compliance with the regulatory environment governing the municipality’s operations. Thus the municipality was unable to fulfill its constitutional and legislative obligations; (c)Service delivery protests were common and some residents ended up establishing the Concerned Residents Ratepayers Association, which withheld payment of services and instead opened a separate trust account; (d)As a result of serious allegations of corruption involving, among others, very senior managers, the municipality was one of the municipalities that were listed in a proclamation (Proclamation No: R72 of 2009) signed by the President for the Special Investigating Unit to probe;

4 Background to Interventions in Madibeng LM: First section 139 intervention in Madibeng Local Municipality 4 (e)In view of these challenges, the North West Provincial Executive Council took a decision in March 2010 to invoke section 139(1)(b) of the Constitution, thereby intervening in the municipality and taking over all its executive powers; (f)The intervention lapsed with the Local Government Elections on 18 May 2011; (g)Even after the intervention lapsed after the 18 May 2011 Local Government Elections, the LM continued to experience a variety of problems, some of which were similar to those which had led to the 2010 intervention, while others emanated from events which occurred during the period of the intervention; (h)The North West Provincial Executive (PEC) resolved to effect another intervention in the municipality towards the end of 2012;

5 Background to Interventions in Madibeng LM: 2012 section 139 intervention 5 (i)The administration of the municipality felt aggrieved by the intended intervention, arguing that it was unfair, premature and malicious given that the administration was new from the 18 May 2011 elections, and the Municipal Council went as far as wanting to challenge the intervention in court; (j)The former Minister, in consultation with the PEC, appointed the Ministerial Task Team (MTT) to investigate if the intervention was necessary. Upon concluding its investigation at the beginning of 2013, the MTT found that the invocation of this section was unwarranted, and went further to recommend the following:  That there must be a section 154(1) support that should be of a collaborative nature between the three spheres of government;  Disciplinary action must be taken against the Municipal Manager, the Acting Chief Operations Officer, the Acting Head of Corporate Services and the Speaker;  Opening of criminal cases against the MM, the Acting CFO, the Acting Head of Corporate Services and the Speaker;  Suspension or placing on special leave of the first three officials pending the finalization of their disciplinary or criminal cases;

6 Ministerial Task Team Report on feasibility of invoking section 139 of the Constitution: (h)The 2012 section 139 of the Constitution invocation was not approved and a Ministerial Support Team (MST) comprising of Mr Tebogo Motlashuping, Mr Pascal Moloi and Mr Boysie Phehlukwayo was established to effect the recommendations of the MTT; The following were the Terms of Reference or the mandate given to the abovementioned officials (MST):  Improvement of service delivery, prioritising water and sanitation services;  Improve the financial controls, expenditure management, procurement processes, revenue enhancement and debt collection, as well as addressing the Auditor General’s reports;  Analysis and the implementation of past and current investigations, commissions of enquiry and forensic audits;  Attending to labour matters (outstanding disciplinary cases, labour disputes and functionality of LLF) and instil the culture of work and discipline among workers;  Facilitate the improvement of governance within council;  Conclude the disciplinary cases of the previously suspended and re- instated managers (develop charges and commence with disciplinary processes); and  Investigate all recently awarded contracts to establish the validity and legitimacy thereof and terminate those that were not legitimate.

7 2014 Application of section 139 of the Constitution 7 (a)In February 2014, the Department received a representation from the MEC responsible for cooperative governance, which served as a notice to the Minister on the Provincial Executive Council’s resolution to intervene in municipality in terms of section 139(1)(b) of the Constitution; (b)The Provincial Executive Council provided the following detailed motivation for the Provincial Executive’s intervention in the municipality:  Evident signs of poor administration and governance which had affected the financial status of the municipality as well as service delivery, resulting in the unfortunate death of four members on the community during a service delivery protest;  Failure by the Municipal Council to implement the recommendations of the MTT appointed by then former Minister, which included taking disciplinary action against councillors and officials implicated in a number of administrative and financial irregularities; and  The current Executive Mayor, Speaker and Council Whip (who had replaced the previous office bearers in January 2014) had failed to make an undertaking to implement the recommendations of the MTT. 

8 2014 Application of section 139 of the Constitution 8 (a)The Minister did not approve this 2014 intervention due to following reasons:  The challenges could still be addressed by providing support to the municipality in terms of section 154(1) of the Constitution instead of the invocation of a section 139(1)(b) intervention;  The municipality had started to implement the MTT Report, starting with the institution of disciplinary proceedings against the MM, the COO and the Acting Corporate Services Manager, and these officials had already been placed on precautionary suspension;  The municipality had developed a plan with the Department of Water Affairs and the Rand Water to address the water crisis in Madibeng;  The Department had begun providing the municipality with the Ministerial Support Team (MST) which had already resumed its work by March 2014; and  Mr Tebogo Motlashuping, who is from the Department, had been appointed as the Acting Municipal Manager to monitor, supervise and implement the recommendations of the MTT Report.

9 2014 Progress on the Ministerial Support Team 9 (a)The thematic areas that MST progressed on included the following: (i)Infrastructure and technical services: The focus was on the provision of water and sanitation functions in the whole of the Madibeng Local Municipality areas; also that included matters connected with electricity supply to the municipality; (ii)IDP: The Municipality Council has adopted IDP Review process plan 2014/15 on August 2013 and consultative processes were conducted through ward public participation; (iii)Community services: Construction of a Library has been finished and furniture as well as library books procured; (iv)Budget and Treasury Office: There is an approved SCM Policy and procedures that need to be followed for all procurement transactions; Municipal Council approved the action plan to address 2012/13 audit queries;

10 2014 Progress on the Ministerial Support Team 10 (v)Human Settlement and Planning: (v)Human Settlement and Planning: Township establishment projects; formalizing certain rural areas; building of a mall and handing over of RDP houses have been undertaken; (vi)Corporate Support Services : (vi)Corporate Support Services : to implement MTT recommendations, the municipality placed the MM, the COO and Acting Director: Corporate Support Services on precautionary suspension pending finalization of investigation and or possible disciplinary enquiry and other disciplinary proceedings have been instituted against a number of municipal employees; Economic Development Tourism and Agriculture: The municipality dealt with these in terms of (vii) Economic Development Tourism and Agriculture: The municipality dealt with these in terms of Entrepreneurial Starter- up Program; ) LED awareness campaigns; and SMME’s programmes, amongst others; (viii)Public Safety, Fleet and Facility Management: The LM dealt with these in terms of (viii)Public Safety, Fleet and Facility Management: The LM dealt with these in terms of Traffics and security, Fleet, Fire & disaster management which are still lacking in their functionary.

11 Thank you 11


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