1. By the Director-General of the Department of Provincial and Local Government (the dplg), Ms Lindiwe Msengana-Ndlela Monday, 7 May 2007 Presentation to the Select Committee on Local Government and Administration By the Director-General of the Department of Provincial and Local Government (the dplg), Ms Lindiwe Msengana-Ndlela Monday, 7 May 2007

2. Contents 1.Context 2.Role of the dplg 3.Strategic Priorities for 2007 ~ 2012 4.Budget 2007/08 ~ 2009/10 5.Conclusion dplg 7 May 20072

3. 1. Context Term 1Term 2 199420042014 Policy, Practice and LessonsAcceleration & Sustainability SONA Mid-Term Review 2007 20092012 dplg 7 May 20073

4. 2. Role of the dplg Influence Organizer Principal player Facilitator Integrator dplg 7 May 20074

5. 3. Areas of Strategic Emphasis 1. Policy 2. Provincial government 3. Service delivery and Development targets 4. Capacity Building and Hands-on Support dplg 7 May 20075

6. Areas of Strategic Emphasis … 5. Public Participation 6. Stakeholder Mobilization 7. Monitoring, Reporting & Evaluating 8. Knowledge Management and Innovation dplg 7 May 20076

7. GovernanceTraditional Leadership Capacity & System Monitoring, Evaluation & Communication dplg’s Organizational Capability STRATEGIC OBJECTIVES Governance Traditional Leadership Capacity & Systems dplg’s organizational capability

8. Strategic Objectives i. To build and enhance the governance system in order to enable sustainable development and service delivery. ii. To oversee the implementation of the intergovernmental programme of support to the institutions of traditional leadership to perform their constitutional mandate. iii. To build and strengthen the capability and accountability of Provinces and Municipalities to implement their constitutional mandate. iv. To monitor, evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance, accountability and public confidence. v. To strengthen the dplg’s organizational capability and performance to deliver on its mandate. dplg 7 May 20078

9. 4. Budget 2007/08 ~ 2009/10 In terms of the Estimate of National Expenditure for Vote 5, dplg has been voted an amount of R100.5 billion over the next three years. This amount comprises of seven budget programmes: –Administration; –Governance, Policy and Research; –Urban and Rural Development; –Systems and Capacity Building; –Free Basic Services and Infrastructure; –Provincial and Local Government Transfers; and –Fiscal Transfers. dplg 7 May 20079

10. Budget 2007/08 … Local Government Equitable Share (LGES) R73.9 billion over MTEF:  Revised formula for the Local Government Equitable Share (LGES) to be fully implemented in 2007/08.  LGES to boost the ability of municipalities to fund the provision of free basic services to poor households. Equitable Share to continue to grow over the MTEF period at an average annual rate of 17.7% (R5 billion over the three years). Additional R400 million has been provided in 2007/08 to facilitate the eradication of the bucket system for sanitation. dplg 7 May 200710

11. Budget 2007/08 … Municipal Infrastructure Grant (MIG) R24.7 billion for municipal infrastructure over the next three years:  Conditional grant to augment municipal own resources to better provide infrastructure for rolling out of basic services, alleviate poverty, address backlogs and regional disparities in municipal infrastructure. The Municipal Infrastructure Grant grows in 2007/08 to R7.5 billion, R8.1 billion in 2008/09 and R9.1 billion in 2009/10. dplg 7 May 200711

12. Budget 2007/08 … Municipal Systems Improvement Grant (MSIG) Municipalities to receive R600 million over the next three years for capacity building. Key areas of support:  The implementation of Performance Management Systems in local government;  Improvements in the quality of Integrated Development Plans;  Strengthen financial management, billing systems and specific revenue enhancement initiatives;  The development and implementation of property rates policies in terms of the Local Government: Municipal Property Rates Act (No. 6 of 2004); and  Support to ensure the functionality of Ward Committees to enhance public participation in local government. dplg 7 May 200712

13. 5.Conclusion Strategic Approach Advance; Acceleration, rapid; Significant, cumulative change; Measurable, rigour; Realistic targets; and Sustainability over the long term. Thank you dplg 7 May 200713