Portfolio Committee On Sports and Recreation 7 November 2017 Sport and Recreation infrastructure in terms of the Municipal Infrastructure Grant.

BACKGROUND All parties agree that Schedule 5 Part B of the Constitution of the Republic of South Africa clearly stipulates that local sport facilities are a Local Government mandate and as such municipalities should receive funding for these facilities. In 2013, a holistic review of the municipal infrastructure grant system was initiated by the Local Government Budget Forum. On the 15th of October 2015 SRSA, CoGTA and National Treasury met without Local Government and agreed on reforms to improve the delivery of sport infrastructure through the MIG. The above resulted in the 2016/17 financial year of 300 million of MIG funds being allocated outside the MIG formula (being ring fenced for sport and a list of Municipal beneficiaries identified by SRSA alone. The challenges faced by this pilot project of 300 million are captured well in the joint presentation agreed upon by all (i.e. SALGA, MISA, CoGTA, NT and SRSA.

SALGA perspective We acknowledge and support the content of the joint presentation on the Status Quo of Sports and Recreation Facilities We appreciate the work to provide all the critical data and information necessary to chart the way forward In addition to the key challenges and remedial action identified by all stakeholders, SALGA included, we would like to highlight a local government perspective to ensure that service delivery in the intended sports facilities remain a reality. Our inputs today is in line with our SALGA mandate: to act as the representative and the sole voice of our 257 members.

SALGA perspective SALGA is concerned that the executive authority of municipalities for local sport facilities is not being fully recognised in the three year R300-million ring-fenced sports pilot project. We are also concerned about the support provided to our member municipalities. We would therefore like to share the following with the PC on Sports and Recreation: To reiterate and demonstrate what the Constitution and related legislation says about our member’s executive authority. How the pilot project may be undermining this authority What needs to be done to put this right

Accountability triangle Executive authority, good governance and accountability Thus undermines executive authority of the Municipal Council (elected Cllrs) SRSA Council Municipality Bypasses the authority Accountability for services through IDP process Accountability infrastructure/ service delivery 2 Accountability triangle Citizens voice, needs, legal rights 5 Service oversight and regulation 6 1 3 Infrastructure/ services provision Citizens /consumer Payment for services (or subsidised by MIG / Equitable Share ) Service Provider 4

Support to Municipalities We are concerned that the support provided by SRSA as part of the pilot is not strengthening the capacity of municipalities Departments have an obligation in terms of section 154 (1) or the Constitution and in terms of the MIG framework to support and strengthen the capacity in municipalities This support to municipalities should include at the minimum the following Identifying local support facility needs through IDP processes How to undertake feasibility studies and develop project plans for sports facilities in compliance with norms and standards How to contract implementing agents and service providers and monitoring thereof Developing capacity to cost sports facilities in terms of both capital and operating costs Developing capacity to maintain and sustain of sports facilities SRSA should not simply be taking over these responsibilities

In conclusion It is indefensible for SRSA to continue managing MIG funds so inefficiently especially when they are intended to benefit the poorest of the poor It is constitutionally indefensible for SRSA to take decisions that a municipality should take as the executive authority for local sports facilities It is administratively indefensible to not adhere to both MIG and National Treasury conditions for the Grant We would like to work together to address these problems

Our proposal SRSA must immediately develop a plan of action to be presented to the next Portfolio Committee outlining how they will address and correct: all the key challenges raised by all stakeholders and as outlined in the joint presentation all the concerns raised in the joint presentation including our additional ones in this presentation. In particular we request that SRSA to outline how they will factor into the programme, the executive authority of municipalities in relation to integrated development planning (and all related decisions) by ensuring that pilot results address appropriate and sustainable local sports facilities

Our proposal SRSA in consultation with all relevant stakeholders must develop a Local Government Support Strategy which outlines: The capacity gaps within municipalities to address local sports facilities including the authority function and the maintenance thereof (status quo of current capacity) The future desired capacity to ensure sustainable local sports facilities, including capacity to fulfil the executive authority for this function (bylaws, planning, financing, service provider arrangements, local regulation) Actions that need to be taken to move from the current status quo to fully capacitated municipalities in terms of the local sports facilities function The roles and responsibilities of different stakeholders in identifying and addressing current capacity gaps The leadership role of SRSA in terms of capacity building objectives and targets for the sector

Thank you