Financial health and sustainability remain one of the foundation blocks for functioning municipalities. Without good financial management, municipalities are unable to fulfil their mandates and deliver uninterrupted services.
Municipal administration (senior management, HR, delegations)
The self-review of procurement decisions by governmental institutions, such as municipalities, has again come under the spotlight in a recent Constitutional Court ruling involving the Greater Tzaneen Municipality.
Municipal managers are appointed by the municipal council under section 54A of the Local Government: Municipal Systems Act 32 of 2000 (Systems Act). They act as the link between the council and the administration.
The Local Government Sector Education and Training Authority (LGSETA) commissioned the University of the Free State (2024) to assess the applicability of evidenced based human resource development (HRD) practices for local government. The study concluded that HRD is not being effectively measured and managed despite the 26-year-old enabling HRD legislative framework comprising of the Skills Development Act of 1998 and the Employment Equity Act of 1998.
The professionalisation of local government has been high on the government’s agenda for over two decades. This is against the background that political interference in municipal decision-making processes destabilises municipalities, and undermines efficient and effective service delivery.
The case of Imvusa Trading 1581 BK v Oudtshoorn Municipality is about a monetary claim arising from a contract between the Oudtshoorn Local Municipality and Imvusa Trading 1581 (Imvusa). The Municipality contracted Imvusa to repair potholes on its behalf without following the requirements set out in the Constitution and the Municipal Finance Management Act of 2003 (MFMA). The Court held that concluding procurement contracts by deviating from legislated procurement requirements renders such contracts unlawful and therefore invalid.
In Nelson Mandela Bay Metropolitan Municipality v Erastyle (Pty) Ltd, the Court had to decide whether Erastyle (Pty) Ltd (Erastyle, the first defendant of eight defendants) was lawfully appointed to provide a service to Nelson Mandela Bay Metropolitan Municipality (the Metro). Secondly, whether the payments received by Erastyle from the Metro amount to irregular expenditure in terms of section 32 of the Local Government: Municipal Finance Management Act (MFMA).
This article explores the law on councillor candidacy, particularly as it relates to municipal, provincial and national employees. Officials employed by the government may stand as councillor candidates, in the fifth democratic local government elections, to be held on 1 November 2021. However, there are certain rules that apply.
Public-Private Partnerships (PPPs) have been identified by government as an important instrument in addressing service delivery and skills development needs of industry broadly and of government specifically.
Year after year, the Auditor General exposes how too many municipalities incur significant amounts of fruitless and wasteful expenditure. The Municipal Finance Management Act of 2003 (MFMA) defines fruitless and wasteful expenditure as ‘expenditure that was made in vain and would have been avoided had reasonable care been exercised’.
Separating politics from administration is the cornerstone of the fight against corruption and maladministration in municipalities. When councillors meddle in the administration, and/or administrators interfere with politics, bad governance and, ultimately, service delivery failure is almost always the result.
On 29 October 2019, Parliament revived deliberations on the Municipal Systems Amendment Bill (Bill). The Bill had been undergoing stakeholder engagement before it lapsed under the previous Parliament. Its revival therefore meant that deliberations on the Bill would start again. After it was revived, the Bill was allocated to the National Assembly’s Portfolio Committee on Cooperative Governance and Traditional Affairs (COGTA) (Portfolio Committee) which was tasked with facilitating stakeholder engagement. As of 30 October 2020, deliberations on the Bill in the Committee had almost been concluded in readiness for its submission to the National Assembly for Second Reading.
How can we improve the quality of governance in municipalities? What do we need to do in local government to promote stability, allow development to take place and create sustainable communities? A recent research report by the Local Government Sector Education and Training Authority (LGSETA) examined these issues.
Good governance and administrative excellence in local government must ensure effective service delivery to communities. This requires capable, knowledgeable and expert senior municipal managers. This article reports the findings of an empirical survey commissioned by the Local Government Sector Education and Training Authority (LGSETA) to establish support required by senior municipal managers. Such support is especially essential for those managers who do not comply with the minimum competency regulations. The survey also intended to assess current levels of compliance with Municipal Regulations on minimum competency levels and to enhance integrated development planning (IDP) capacity in the local government sector.
In South Africa, with many government-supported growth initiatives prioritising the creation of low-skill jobs and the development of high-level skills, a 2020 research study by the Local Government Sector Education and Training Authority (LGSETA) has examined the effect of the skills mismatch. This study of local government established that South Africa is faced with a prevalence of under-qualified staff and mirrors a 2019 Department of Higher Education (DHET) study of South Africa as a whole showing that almost one-third of workers are mismatched by their field of study. This mismatch can be addressed through on-the-job training, retraining, and new-skill acquisition.
Legal Briefs.
Does the municipal council have a say in the appointments of administrative staff by the municipal manager?
Tying Municipal Manager's Pay to Performance.
Municipal managers are well paid-too well, it has sometimes been argued. Many wonder why the head public servants of local government should earn more than mayors, or in some cases even the President. The remuneration of managers became a hot issue in the run-up to the recent local government elections. the Department of Provincial and Government recently gazetted new regulations on the performance and remuneration of municipal managers.
From the Courts: Extending Municipal Managers Contracts
The Change of government in the City of Cape Town Metropolitan Council has also seen a change in the office of the municipal manager. Although the decision of the Cape High Court in Mgoqi v City of Cape Town dealt with a number of issues, at the core of the dispute was whether the the outgoing mayor could have extended the contract of the then municipal manager, Wallace Mgoqi.
Salaries Scale Upwards For Mayors, Managers and Councillors.
National government recently gazetted new and bigger remuneration packages for municipal councillors. The proposal sees a big jump in salaries for all office-bearers, especially part-time councillors. However, some dangers lurk in the changes for rural councils and voters in poorer communities.
State of the Municipalities: More Money, More Skills
In his 2006 State of the Nation Address on 3 February , President Thabo Mbeki focused on the troubles and goals of local government. While he noted that three quarters of South Africans approve of the government's service delivery efforts, only 45% believe that local government is performing well. The President then set out his plan to rescue local government.
Communities Providing Services.
The Constitution mandates local government to ensure the provision of services to communities in a sustainable manner and to encourage the involvement of communities and community organisations in the matters of local government.
Service Delivery Agreements: Who Reads Them?
Who can own up to having read a standard service delivery agreement from start to finish and having understood it all? Very few people, i imagine. In the main, service delivery agreements are notoriously long, complex and wordy and are usually filled with legalese. They make little attempt to help the reader gain a meaningful understanding of the basic terms governing the contracting parties relationship. In short, they are inaccessible to the ordinary reader.
Johannesburg's Special Cases Policy: A New Start For the Indigent.
On 4 May 2005 the City of Johannesburg started registering beneficiaries under the Special Cases Policy of 2004. The main purpose of the policy is to write off municipal services debts owed by indigent people and to provide subsidisation of basic services for identified classes of people.
Outsourcing Municipal Services and Skills Transfer.
The Local Government Project conducted a survey of a wide range of current South African service delivery contracts to see how their actual contract terms assist in achieving the outsourcing objectives and how they provide for the common dangers. The objective was to get a general idea of the these service delivery contracts entail. This article focuses on what they contain on the issue of skills transfer,.
Securing Woman's Participation in Local Government
Local Government is the sphere of government that is regarded as being closest to the people. Municipalities are instrumental in providing basic services to communities. Woman are often the main consumers of these services due to the caregiver role they play and are thus likely to feel the impact of local government the most.
From the Courts: Is There a Right to View?
Though there is no common law right to a view, the case of Paolo v Jeeva N.O and Others 2004 (1) SA 396 SCA has led to the perception among the public that certain laws do protect an existing view. As a result of media coverage, it is widely believed that section 7 of the National Buildings Regulations and Building Standards Act obliges a municipality to refuse any building plan for a building that will interfere with the view of an adjoining property.
Local Government is in Good Health.
The core principles, values and features of the new local government system are sound. This is the conclusion of the national Portfolio Committee on Local Government after a major study tour of the municipalities at the beginning of 2003.
From the Courts: A Right to Affirmative Action & Disconnecting Basic Municipal Services.
Harmse v City of Cape Town (2003) JOL 11047 (LC)
The Delegation System: Who Does What?
All municipalities must develop a system of delegation in terms of the Municipal Systems Act. A delegation is when a person or structure delegates functions that originally vested in it to another person or structure to do.
Municipal Finance Management Bill under Scrutiny
During February and March 2002, the National Assembly's Portfolio Committee on Finance received submissions on the Municipal Finance Management Bill. This article summarises concerns about the Bill which were raised by the Community Law Centre.
Local Government Bargaining Council: Towards a Uniform Approach to Labour Matters?
The South African Local Government Bargaining Council was registered on 1 March 2001 after an agreement signed on 2 September 1997 between the South African Local Government Association and two Unions, the South African Municipal Workers Union and the Independent Municipal Allied Trade Union.
From the Courts: Time Limit on Suing the Municipality.
Moise v Transitional Local Council of Greater Germiston (2001) JOL 8446 (W)
Legal Briefs: Municipal Staff Member on a Ward Committee?
With the enactment and implementation of the Municipal Demarcation Act, Municipal Structures Act and Municipal Systems Act, the new dispensation for local government has firmly taken root. Are old order ordinances still applicable?
Walking the Tightrope: Roles and Responsibilities of the Municipal Manager
The administrative head of the municipality is not escaping the current wave of transformation, restructuring and renaming of local government structures.
Implications of Non-Compliance With Treasuries Competency Requirements.
In 2007, in response to the capacity constraints bedevilling local government, the National Treasury issued regulations setting out minimum competency requirements which all municipal financial and supply chain management officials have to meet. The regulations took effect on 1 January 2008, but gave a fiveyear period of grace within which all financial and supply chain management officials throughout the country were required to attain the minimum competency levels. For these officials, the countdown reaches zero on 1 January 2013.
From the Courts: The end of administrative autonomy over individual staff appointments.
Manana v King Sabata Dalindyebo Municipality (345/09) [2010] ZASCA 144 (25 November 2010).
Should All Municipal Managers Get The Boot?
With the election of new councils on 18 May, many municipal managers are likely to lose their jobs. The same applies to the managers reporting to the municipal managers.
Professional Administration Crucial For Service Delivery.
Municipalities cannot deliver on their developmental mandate without suitably qualified and professional staff. However, evidence shows that the lack of good governance of staff matters in many municipalities results in service delivery failures. Local government needs to professionalise and be professionalised – and there are three aspects to this which this article discusses.
Leadership Matters: Professionalising Political Leadership.
Moves are afoot to professionalise the administrative arm of local government. First, the National Treasury has prescribed a competency framework for municipal officials at senior and middle management levels. All senior and middle managers must have acquired the prescribed competencies by 1 January 2013, after which no candidate without the requisite competencies can be appointed. These regulations also make it necessary for current employees to attain these competencies by 31 December 2012.
Woman's Employment Equity in Local Government.
Gender equity is a key objective of government policy, as seen in national government’s target of 50:50 gender representation in senior management by March 2009. However, recent research shows that this target is far from being met.
Towards a Professionalised Management at Local Government
The Department of Cooperative Governance and Traditional Affairs (CoGTA) has published proposed amendments to the Municipal Systems Act which will do much to promote a more professional administration by way of better-qualified senior management, more impartiality and greater efficiency.
Resolution of SAMWU Strike by SALGA Commendable.
The recent strike by the SA Municipal Workers’ Union (SAMWU) centred on two key issues: inequity in wage curves (the income bands according to which workers are categorised) and the disciplinary bargaining collective agreement which governs the union.
Different Hats Worn by the Municipal Manager in the Tender/Bid Process.
In a recent Supreme Court of Appeal decision, CC Groenewald v M5 Developments, the court held that the unsuccessful bidders had a right, under section 62 of the Municipal Systems Act, to appeal against the municipality’s decision to award a tender. The court cautioned, however, that even though an appeal under this provision was a ‘wide appeal’, involving a rehearing of the issues, it did not allow the appeal authority to revisit all tenders and to award the tender to a bidder who had not appealed or, as in this case, whose appeal was out of time.
Separating Party Politics From Governance.
The report by COGTA on the state of South African local government clearly identifies interference by political parties as a cause of the ‘dysfunctionality’ and ‘instability’ of municipalities. As the Local Government Turnaround Strategy states, political parties are ‘undermining the integrity and functioning of municipal councils through .... inappropriate interference in councils and administration.
Legal Briefs.
Can an employment contract be valid if a performance agreement has not been concluded?
Implications For Local Government of a Single Public Service: Great White Hope Or Disaster in the Making?
The Department of Public Service and administration has published for comment a draft Public Administration Management Bill aimed at creating a single public service. The long-waited Bill is being promoted as the magic bullet for addressing capacity shortages and streaming service delivery. The intention is that the Bill will be submitted to Parliament in June and passed this year. We outline key aspects of the Bill and raise a number of concerns.
From the Courts:
Does a Town Clerk have the Authority to Institute Legal Proceedings on Behalf of the Municipality?
Employment Equity Act
There are those who say that the old South Africa is alive and well in the workplace. The upper levels of many organisations remain white and male dominated. Left to market forces, transformation proceeds at a snails pace.
Municipal Systems Bill: Erecting the Third Pillar
On 6 August 1999, Minister Mufamadi published the Local Government: Municipal Systems Bill, 1999 for public comment. The Bill. after due consideration of any comments, should enter the parliamentary process by the end of October 1999 at which stage the public will be given a further opportunity, in the form of public hearings, to make representations.