1. PRESENTATION PORTFOLIO AND SELECT COMMITTEES ON CoGTA
PrEPARATIONS AND READINESS FOR THE 2016 LOCAL GOVERNMENT ELECTIONS Tuesday, 12 April 2016, Parliament,

2. OUTLINE Role of the Minister
Determine a formula for the number of councillors
Call and set a date for the elections
Oversee preparations for the elections
Major Boundary Redeterminations Confirmed by the MDB (2013 and 2015)
Role of the Provinces
Matters to be Managed During the Transition
Municipal Demarcation Transition Committee (MDTC)
Overview of progress reports / inputs:
Provinces
National Treasury
Organised labour
Assignment of Addresses
7. Recommendations

3. 1.
ROLE OF THE MINISTER

4. ROLE OF THE MINISTER (DETERMINE FORMULA FOR THE NO. OF CLLRS)
Section 20 of the Structures Act - number of councillors finalised in accordance with a formula determined by the Minister by Notice in the Government Gazette, based on the number of registered voters.
Revised formulae for A, B and C (from previous terms).
Formulae were published on 9 September 2014.
CATEGORY
FORMULA
METROPOLITAN MUNICIPALITIES:
Y = X /
LOCAL MUNICIPALITIES:
BELOW 7501 VOTERS
Y = 5
BETWEEN 7500 AND VOTERS
Y = X /
MORE THAN VOTERS
Y = X /
DISTRICT MUNICIPALITIES:
BELOW VOTERS
Y = X/
MORE THAN
Y = X/
Pursuant to the Minister publishing the formulae in the Government Gazette, all MECs subsequently determined the number of councillors for each municipality within their area of jurisdiction in the respective Provincial Gazettes, during September and October 2014.
This enabled the Demarcation Board to begin the process of determining the number of wards for each local and metropolitan municipality, and to begin the process of delimitation.

5. ROLE OF THE MINISTER (CALL AND SET A DATE FOR ELECTIONS)
Section 24 of the Structures Act - the Minister, after consulting the Electoral Commission, must, by Notice in the Government Gazette, call and set a date for an election of all municipal councils within 90 days of the expiry of the term of municipal councils.
On 6 April 2016 the President announced that the LGE will be held on 3 August 2016.

6. ROLE OF THE MINISTER (OVERSEE PREPARATIONS FOR THE ELECTIONS)
In line with past practice, Cabinet approved that the Inter-Ministerial Task Team on Municipal Elections (“the IMTToME”), and the Technical Task Team on Municipal Elections (“the TTToME”) be established.
The main objective of the Task Teams is to coordinate all government activities in preparation of the LGEs.
The IMTToME will be convened by the Minister and will consist of the following Ministries:
Ministry of Justice;
Ministry of Home Affairs;
Ministry of Police;
Ministry of State Security; and
Ministry of Communications.
The Chairperson of the IEC, the SALGA and the MDB will also form part of the IMTToME.
The first meeting of the IMTToME was held on 25 February 2016; Special IMTToME held on 9 March 2016; 1 April 2016 (GCIS, Tlokwe Matter, Assignment of Addresses).

7. ROLE OF THE MINISTER (OVERSEE PREPARATIONS FOR THE ELECTIONS)
The TTToME, is chaired by the Director-General: DCoG, and consists of the following Departments:
Department of Justice;
Department of Home Affairs;
Department of Police;
Department of State Security; and
Department of Communications.
The CEOs of the IEC, the SALGA and the MDB also form part of the TTToME.
The TTToME met on 12 June 2015; 22 January and 9 March 2016.

8. 2.
MAJOR BOUNDARY REDETERMINATIONS CONFIRMED BY THE MUNICIPAL DEMARCATION BOARD
The following slides deal with the major boundary determinations that were confirmed by the MDB during 2013 and, more recently, during the latter part of 2015.

9. MAJOR BOUNDARY REDETERMINATIONS (2013)
During 2013, the MDB confirmed the outer boundaries of municipalities.
In respect of Gauteng:
Westonaria and Randfontein Local Municipalities will be amalgamated into a single local municipality (reduction of 1 municipality).
In respect of KwaZulu-Natal:
The following municipalities have been amalgamated (reduction of 7 municipalities):
Vulamehlo and Umdoni;
Hlabisa and The Big 5 False Bay;
Umtshezi and Imbabazane;
Ezinqoleni and Hibiscus Coast;
Emnambithi/Ladysmith and Indaka;
Kwa Sani and Ingwe; and
Ntambanana/ Mthonjaneni /Umhlathuze.
This process in 2013 led to a decrease of 8 local municipalities.
This redetermination by the MDB during 2013 already saw a reduction of 7 local municipalities with effect from the next term of local government.

10. MAJOR BOUNDARY REDETERMINATIONS (2015)
Between February and April 2015, the Minister requested the MDB, in terms of section 22(2) of the Demarcation Act, to determine or redetermine the boundaries of various municipalities with the view to optimise their financial viability.
In total, after consultation with the MECs for local government, 34 requests were made to the MDB by the Minister, as follows:
PROVINCE
NO.
KZN 11
LIM 5 EC MP FS 2 NW 4 GP 1 NC
90 municipalities were affected through the above request.

11. MAJOR BOUNDARY REDETERMINATIONS (2015)
On 27 and 28 August 2015 the MDB confirmed decisions in respect of 12 cases.
On 21 October 2015 the MDB confirmed the redetermination of Ikwezi/Baviaans/Camdeboo.
MDB Confirmed 10 cases;
MDB Varied 3 cases (2 in Limpopo, and 1 in Eastern Cape); and
Resulted in a reduction of 13 municipalities (21 in total).
PROVINCE
NO.
KZN 1
LIM 4 EC MP FS NW GP - NC

12. TOTAL NUMBER OF MUNICIPALITES WITH EFFECT FROM THE 2016 LG ELECTIONS
PROVINCE
CAT A
CAT B
CAT C
TOTAL EC 2
31 (-6) 6 39 FS 1
18 (-1) 4 23 GT 3
6 (-1) 11
KZN
43 (-7) 10 54
LIM
22 (-3) 5 27 MP
17 (-1) 20 NC
26 (-1) 31 NW 22 WC 24 30 8
205 (-21) 44
257 (-21)

14. 3.
ROLE OF THE PROVINCES

15. ROLE OF THE PROVINCES (OVERSEE PREPARATIONS FOR THE ELECTIONS)
Section 12 of the Structures Act:
MECs to establish municipalities
The MEC for local government in a province must establish a municipality in each municipal area which the MDB demarcates in the province (by Notice in the Provincial Gazette).
Section 14(5) of the Structures Act:
Regulation of effects of establishment of municipality on existing municipalities:
The MEC for local government in a province may make provision for transitional measures to facilitate the disestablishment of an existing municipality and the establishment of a new municipality. The MEC must consult the existing municipality before publishing the notice.
All provinces have published section 14(5) Notices.
Provides for various transformation structures to process issues:
Municipal Technical Change Management Committee
Municipal Political Change Management Committee
Provincial Transformation Committee

16. MATTERS TO BE MANAGED DURING THE TRANSITION4.
MATTERS TO BE MANAGED DURING THE TRANSITION

17. MATTERS TO BE MANAGED DURING THE TRANSITION
Identified the following SEVEN key focus areas to manage during the transition process:
(i) Legal:
Rationalisation of by-laws
Promulgation of revised by-laws
Rationalisation of policies
Transfer of archive system to new municipality
Archiving of files
Contractual obligations
(ii) Human Resources:
Development of new organogram
Workstudy processes
Job evaluation
Determining placement costs
Placement policy
Relocation costs of staff
Retrenchment costs

18. MATTERS TO BE MANAGED DURING THE TRANSITION
(iii) Finance:
Supplementary / new valuation roll
Rationalisation of billing, financial and IT systems
Asset register to be updated in terms of GRAP
Grants received
Rates income
Tariffs restructuring
Implementation of mSCOA
Consolidation of AFS
Identification of primary banker and signatories
Financial commitments towards contracts

19. MATTERS TO BE MANAGED DURING THE TRANSITION
(iv) Communications:
Development of communication strategy
Undertake roadshows
New branding, logo’s, etc..
Participation of Amakhosi
Advertising (radio, television, newspapers)
(v) IDP:
New process plans to be adopted by councils
Adoption of revised IDPs
(vi) Institutional matters:
Determination of head office and satellite office/s
Naming of new municipality
Council chambers
(viii) Drafting of Section 12 Notices

20. MUNICIPAL DEMARCATION TRANSITION COMMITTEE (MDTC)5.
MUNICIPAL DEMARCATION TRANSITION COMMITTEE (MDTC)

21. MUNICIPAL DEMARCATION TRANSITION COMMITTEE (MDTC)
The MDTC, Chaired by the Director-General: DCoG, met on 29 October 2015 and 21 January 2016.
The MDTC is comprised of the following Departments / Organisations:
Provinces;
National Treasury;
Other sector departments;
SALGA;
MDB;
IEC; and
Labour (IMATU, SAMWU).
Progress reports are submitted by all provinces, sector departments, SALGA, MDB and IEC.

22. MDTC: GENERAL OBSERVATIONS FROM PROVINCES
Steady progress made in all areas relating to the transition;
Sector departments were not attending meetings;
Some activities are at a more advanced stage over others;
Attendance at meetings need to improve, with greater participation needed from traditional leaders;
Section 12 Notices are being updated and refined –
Category and the type of municipality;
Boundaries of the municipal area;
Name of the municipality;
Number of wards and number of councillors; and
Councillors who have been designated as full-time;
Funding remains a challenge;
There is commitment to ensure that all deliverables are timeously finalised.

23. MDTC: KWAZULU-NATAL
Published revised Section 14(5) Notice on 29 February 2016;
Provincial Business Units guide the under-performing Task Teams;
By-laws and policies have been rationalised and awaiting approval from the CMCs;
Archiving of documents finalised by 31 March 2016;
Engaging with National Treasury to determine mSCOA compliance with IT systems;
Rationalisation of valuation rolls, and financial systems, have been commenced-with;
Asset registers being compiled in terms of GRAP requirements;
Organograms for the new municipalities being finalised; and
Job descriptions were being drafted for the posts on the proposed organograms.

24. MDTC: EASTERN CAPE
Section 14(5) Notice published, and CMCs have been established;
CMCs are not meeting as often as they should;
Several engagements held at political level;
By-laws and policies have been documented – in the process of rationalisation;
Valuation rolls are being consolidated;
Communication strategy has been developed;
The Baviaans, Camdeboo and Ikwezi merger was behind schedule – the Mayor of Baviaans has not been participating in any of the CMCs;
Some funding (R2 million) has been availed by the province; and
“Seats” and names of municipalities are being considered.

25. Regular meetings of the Technical CMCs;
MDTC: MPUMALANGA
Regular meetings of the Technical CMCs;
By-laws and policies are presently being rationalised;
Systems are in place to transfer archives;
The DCoG has facilitated support from GIZ to assist in the development of the organogram – to be finalised by 31 March 2016;
An IT transition plan has been developed, which caters for all IT related matters;
The updated asset register will be completed by 30 June 2016; and
Participation from sector departments must be improved.

26. Regular meetings of the CMCs – meets every second Wednesday;
MDTC: NORTH WEST
Regular meetings of the CMCs – meets every second Wednesday;
All the local government KPAs and B2B Pillars are addressed by the workstreams;
The Political CMC meets monthly - is convened and chaired by the MEC for CoGTA, and co-chaired by the Executive Mayor of the Dr Kenneth Kaunda District Municipality;
Valuation rolls are valid until 2017;
Asset registers are GRAP compliant; and
Both municipalities do not have any long term service contracts.

27. MDTC: LIMPOPO
Organised labour only participating at district / local level, and not at provincial level;
Greater progress has been noted in Waterberg and Sekhukhune districts, over the Capricorn and Vhembe districts;
Using the opportunity to migrate manual records management to electronic;
Support needed to rationalize by-laws and policies;
Some challenges were being experienced in the “New” municipality, which was also being affected by litigation instituted by the Masia Traditional Council;
The Provincial Executive Council was attending to challenges being experienced in the Malamulele area; and
There is consistent participation by SALGA in transition engagements.

28. MDTC: FREE STATE
By-laws and policies of both municipalities have been documented, and is on-track to being rationalised;
Record management systems of both municipalities are being integrated;
Naledi’s asset register is not fully compliant with GRAP standards;
All existing contracts of both municipalities are being documented, including all existing civil and labour cases;
Organogram for the new municipality is being developed - costs related to relocation; salary after placement; leave payment; and other related human resources costs are being determined;
Financial management and billing systems of both municipalities are being rationalised; and
Asset registers of both municipalities are being updated.

29. Will have a Head Office with two satellite offices;
MDTC: NORTHERN CAPE
Will have a Head Office with two satellite offices;
By-laws and policies of the affected municipalities will be rationalised by March The revised by-laws will be published post the LGE;
The process to transfer assets and records will be finalised in March 2016;
Existing contracts of the affected municipalities have been documented;
Valuation rolls are valid until 2018;
Khara Hais is a mSCOA pilot site, and National Treasury is being engaged with to the new financial system that will be in place; and
Organogram for the new municipality is being developed.

30. MDTC: GAUTENG
Certain processes were held in abeyance due to the pending litigation with regards to the Sedibeng area;
Revised section 14(5) Notice published on 29 February 2016;
Identified those by-laws that will be prioritised for submission to the new council;
Reviewing Rules of Order and system of delegations;
Conducted job evaluation, and developing organogram;
Valuation rolls will be in force until 30 June 2018;
Asset registers are being compiled;
Determination of the “seat” for the Head Office and name of the municipality being considered;
Existing by-laws and policies of both municipalities have been documented, and is in the process of being rationalised; and
Existing contracts of the two municipalities are being documented.

31. MDTC: NATIONAL TREASURY
The NT has revised the budget allocations of the affected municipalities;
The LGES formula has been updated and allocations recalculated to take into account the new municipalities;
Municipalities are guaranteed to still receive at least 95% of their indicative allocations for 2016/17; and
A MDTG of R408 million was made available for the 2016/17 and 2017/18 financial years (R297 million and R111 million, respectively).

32. MDTC: ORGANISED LABOUR
SAMWU:
The transition process must be properly managed, or else, it could pose challenges in municipalities.
Collective agreements must be adhered-to.
Undertook to encourage its municipal and provincial structures to attend and participate in the transition processes.
IMATU:
Indicated that its focus will be on HR matters, and more so, on placement and migration.
SALGA:
SALGA continues to support all the affected municipalities in their transition processes.

33. ASSIGNMENT OF ADDRESSES6.
ASSIGNMENT OF ADDRESSES

34. THE ASSIGNMENT OF ADDRESSES
In light of the Electoral Court decision of 23 February 2016, on 25 February 2016 the IMTToME established a Sub-committee (of the TTToME) to explore options and develop proposals to assign addresses to households without formal addresses.
The Sub-committee that was established consists of the following Departments / Institutions to develop proposals with the assignment of addresses:
Telecommunications and Postal Services, Human Settlements, Home Affairs, Public Service and Administration, Science and Technology, Water and Sanitation, Rural Development and Land Reform, Social Development; and
IEC, ESKOM, SALGA, STATSSA, South African Post Office (SAPO), TELKOM.
The Sub-Committee is led by STATS SA and SAPO – work in this regard has commenced.
Noting the limitations of available data, STATS SA has proposed assigning geo-coded identifiers by using segmentation by place name using the Dwelling Frame to assign addresses to households.
It must be further noted that the assignment of addresses does not fall within the mandate of the IEC.

35. LOCAL GOVERNMENT ELECTIONS
102
DAYS
TO THE
LOCAL GOVERNMENT ELECTIONS

36. 7.
RECOMMENDATIONS

37. It is recommended that the Committees:
RECOMMENDATIONS
It is recommended that the Committees:
Note the contents of the presentation; and
Support the various processes in preparation for the 2016 local government elections.