REPORT ON THE PRESIDENTIAL LOCAL GOVERNMENT SUMMIT Held on 18 September 2014 Gallagher Convention Centre, Midrand, INDEX

Page 1. Introduction

Opening and Welcome 2.

3. The Opening Address by President Zuma

5. Back to Basics: Serving Our Communities Better! 9. Learning from practice

Interactive Panel Discussion: Collaborative 13. Governance, Planning and Delivery

17. Working Groups debate the Back to Basics Agenda

19. Statement Of Intent and Conclusion 20. Appendix A: Aspects emanating from the Working Groups

23. Appendix B: Attendees to the Presidential Local Government Summit: 18 September 2014 1. Introduction

n 18 September 2014 President to improve the performance of local government. The Oconvened the second Presidential Local Minister has emphasised that such an undertaking Government Summit at the Gallagher Convention demands intergovernmental commitment and Centre, Midrand, Johannesburg. The theme of ownership across each sphere. the Summit was “Back to Basics – Serving Our Communities Better”. The core document ‘Back to Basics: Serving Our Communities Better’ was distributed to all The Summit was convened to provide an delegates at the Summit. This paper acknowledges intergovernmental platform for the Minister of Cooperative Governance and Traditional Affairs, Mr remaining challenges, and proceeds to outline P Gordhan (the Minister), to introduce government the Back to Basics Programme for Change. Key and stakeholders to the ‘Back to Basics’ approach performance standards are also introduced, as well for Local Government. as an articulation of the roles and responsibilities of each sphere of government and the Traditional Delegates at the Summit included National Ministers, Leaders in the implementation of the programme. Deputy Ministers, Premiers of the provinces, the Chairperson of the National Council of Provinces, The Back to Basics document also contains an the Deputy Speaker of the National Assembly, Appendix with proposed Municipal reporting Members of the Executive Councils (MECs) for Local activities by Mayors, their councils, and the Government, the Deputy Chairperson of the NCOP, Municipal administration, which are for immediate Chairpersons of Parliamentary Committees, the implementation. It is thus a framework programme Chairpersons of the National House of Traditional for our collective action. Leaders and of the South African Local Government Association (SALGA) respectively, Mayors, members of Traditional Councils, Municipal Managers,

Stakeholders included the business sector, organised labour, many professional and research bodies, the donor community and the media (see Appendix B for the list of delegates that attended the Summit).

The impetus for the Summit was the imperative

of municipalities to better serve communities by getting the basics right. In this respect, government President Zuma, Mr , Minister of Cooperative Governance must have a common understanding of where we and Traditional Affairs and Mr , Deputy Minister of Traditional Affairs. are, where we could be, and what needs to be done

1 Report On The Presidential Local Government Summit Held On 18 September 2014 At Gallagher Convention Centre, Midrand, Johannesburg 2. Opening and Welcome

municipalities to perform their roles, within a larger Mr Andries Nel, Deputy Minister of Cooperative framework of interrelated oversight and support as Governance (CoGTA) formally declared the provided for in the Constitution’. Summit open and welcomed the executive leadership of the country consisting of HE President Zuma, Coming to the importance of learning from previous Ministers, Premiers, MECs, parliamentarians, Mayors endeavors, Mr Nel pointed out that ‘at this point and Executive Mayors, the senior leadership of our in time, we are harnessing the learning of the administrations, as well as many key stakeholders past 14 years of local government, and from our who continue to support our endeavors in freedom and democracy of the past 20 years - and government to bring about a better life for all. asking the national, provincial and local executives and stakeholders to join with us in this critical Deputy Minister Nel extended a special word of endeavor to get back to basics and better serve our welcome to the Ministers present that are to be communities’. represented in the new Inter-Ministerial Committee for Service Delivery, and stated that the Ministry In view of the above, Deputy Minister Nel emphasized and department are looking forward to building a that the remainder of the day would be utilized to strong and collaborative relationship going forward explore how we may advance the objectives of as we strive towards better serviced communities. the ‘Back to Basics’ Approach themed “Serving Our Communities Better”. He stated that to this intergovernmental meeting of our leadership. effect the Summit Programme is intended to open both dialogue and action for both government and Mr Nel emphasized that we all know that much stakeholders. has been collectively achieved in building local government since 1995. Under the auspices of our The Deputy Minister then called for delegates to system of cooperative governance, he said, we have created our unitary state composed of ‘distinctive, interdependent and interrelated’ spheres of our three spheres of government and wished all a government. Further, he stated, ‘we have backed fruitful and engaging day as they deliberate upon this up with a suite of local government legislation these matters. and policy that is world class, thereby enabling

President Zuma, Minister Gordhan and Mr Andries Nel, Deputy Minister of Cooperative Governance.

2 Report On The Presidential Local Government Summit Held On 18 September 2014 At Gallagher Convention Centre, Midrand, Johannesburg 3. The Opening Address by President Zuma

President Zuma delivering the opening address.

n his opening address, President Jacob Zuma municipalities, and that the release of the 2011 Ihighlighted the great strides that have been made in delivering basic services to South African have been made in providing all South Africans communities over the past 14 years since the with access to basic services. This upward trend inception of a democratic local government in 2000. the Non-Financial Census of Municipalities which He reiterated that it was a priority for the 5th was released on 2 September 2014. This Report democratic administration that the basic services also substantiated that the services rendered by and needs of South Africans at local level are met, and emphasised that government will continue to poverty reduction. work hard to achieve radical and meaningful change in the performance of local government. The President declared that as enters the second phase of its transition from apartheid The President outlined the goal of the Summit as to a national democratic society, government must follows: “Out of this Summit must emerge a focused embark on a programme of radical socio-economic action plan to strengthen local government by transformation to push back the triple challenges of getting the basics right, and local government, poverty, inequality and unemployment. But, stated together with other spheres of government, must the President, change will not come about without some far-reaching interventions, and a programme and in a caring manner.” of action based on the National Development Plan.

He said South Africa’s Constitution enshrines socio- He referred to his 2014 State of the Nation Address, economic rights, including the rights to dignity, in which he expressed the principle that South water, sanitation and housing, amongst other basic African’s experience of local government must be a needs. The realisation of the socio-economic rights positive one, and local government must be at the outlined in the Constitution is central to government’s forefront of improving people’s lives and creating aspirations as a democratic South Africa. conditions for inclusive economic growth and job creation. President Zuma highlighted that there has been great progress in basic service delivery in many

3 Report On The Presidential Local Government Summit Held On 18 September 2014 At Gallagher Convention Centre, Midrand, Johannesburg President Zuma stated that a well-functioning local not improve despite support, government would government sector is of the utmost importance to have “no alternative but to use all constitutional create an enabling environment for the business powers and legislative opportunities in the quest to ensure that our communities are served better”. job creation. The President concluded by challenging delegates He added: “We encourage more businesses to to the Summit to agree on an action plan which will identify municipalities to support. This will help pave the way for serving South Africans better by business to contribute to enhancing service getting the basics right. According to the President, delivery in the local government sphere and in delegates’ mutual recommitment to their the cities and towns”. improvement of the lives of ordinary people.

In respect to compliance and adherence to the law, President Zuma declared that local government existed to serve the people: “That is the bottom line.” In light of this pronouncement, President Zuma asserted that, should the struggling municipalities

4 Report On The Presidential Local Government Summit Held On 18 September 2014 At Gallagher Convention Centre, Midrand, Johannesburg 4. Back to Basics: Serving Our Communities Better!

Mr. Pravin Gordhan, the Minister for Cooperative 3. Be well governed and demonstrate Governance and Traditional Affairs (CoGTA) then governance and administration – cut wastage, delivered the presentation which focused on the spend public funds prudently, hire competent Back to Basics approach and Programme of Action. staff, ensure transparence and accountability.

The key priority, the Minister emphasized, was the 4. importance of “Getting the Basics Right”. He then accounting, and prudently manage resources so as to sustainably deliver services and bring approach, which are the principles for action, as development to communities. depicted below. 5. Build and maintain sound institutional and administrative capabilities, administered and managed by dedicated and skilled personnel at all levels.

Minister Gordhan said too many municipalities failed to “do the basics for their communities”, and that the Summit was all about going back to basics and serving communities better. The Minister urged municipalities to only hire engineers and other technicians who will construct the best infrastructure developments that will last more than 20 years.

Figure 1: The five (5) pillars of Back to Basics In sharing the ’Back to Basics’ Programme of Action to revitalise local government Minister Minister Gordhan thereafter elaborated upon these Gordhan stated:“ We have performed a review of all our municipalities over the past 6 – 8 weeks. We to take local government forward to ensure an acceptable level of performance by municipalities: they work within legislative processes as well as their ability to roll out projects and to address 1. capacity constraints. We have also looked at how constant contact with communities through they respond to service delivery protests. There effective public participation platforms. have been many successes in many municipalities. 2. Create conditions for decent living by However we face a number of challenges”. consistently delivering municipal services to the right quality and standard. This includes Minister Gordhan subsequently shared some of planning for and delivery of infrastructure and the highlights of the review as well as conclusions amenities, maintenance and upkeep, including regarding factors of what constitutes a good as well the budgeting to do this. Ensure no failures in as a poorly functioning municipality. services and where there are, restore services with urgency. During his presentation, Minister Gordhan indicated that the recent assessment of the performance

5

Report On The Presidential Local Government Summit Held On 18 September 2014 At Gallagher Convention Centre, Midrand, Johannesburg of all 278 municipalities in the country, informed others, endemic corruption, dysfunctional the introduction of the Back to Basics approach councils, no structured community engagement according to which municipalities were grouped into the following three categories: management leading to continuous negative audit outcomes. They have a poor record 1. The top group comprises of municipalities, of service delivery and service management which, in most cases, have the basics right and performing their functions adequately, even though they still have much to do to improve. etc. While most of the necessary resources to Within this group, there is a small group of top render the functions or maintain the systems performers that are doing extremely well. In these are available, the basics are not in place. It is municipalities the basics are in place, and there in these municipalities that municipalities are are innovative practices to ensure sustainability failing the people of South Africa, and there is a and resilience. need to intervene urgently in order to correct the decay in the system. 2. The middle group comprises of municipalities that are fairly functional, and overall performance Minister Gordhan also recognized the following is average. While the basics are mostly in achievements by local government during the past place, and the municipalities can deliver on the 14 years of democratic local government: traditional functions of local government, there are worrying signs of degeneration and decline 1. Wall to wall democratic municipalities; in these municipalities. 2. 3. Improved integrated transport; and 3. The bottom third group is made up of 4. Innovative practices in many municipalities municipalities that are dysfunctional, and face ensuring sustainability and resilience. serious challenges in meeting their constitutional obligations. These municipalities require urgent Municipalities also face many challenges that intervention and support to enable them to get the basics right. The review found amongst capacity, the low rate of revenue collection, unskilled

Figure 2: CoGTA’s assessment of the performance of Municipalities

6

Report On The Presidential Local Government Summit Held On 18 September 2014 At Gallagher Convention Centre, Midrand, Johannesburg or incorrect personnel which was also raised by the Priority 1: For those municipalities in a President, slow service delivery, inadequate public dysfunctional state the objective is to get them to perform at the very least the basic functions of local government. This will be achieved through Minister Gordhan furthermore emphasized the the enforcement of current policies and legislation, need to set a collective target for local government the systematically managing of their performance performance whereby top performing municipalities and accountability, and ensuring that there are should become role models for other municipalities consequences for underperformance. Minimum and take on more complex challenges of spatial performance requirements include ensuring the integration and economic development within proper functioning of council structures and council their municipalities. The middle group must aspire processes, the provision of basic services, and the towards ensuring that the basics are performed and appointment of competent staff – these are non- ensure an acceptable level of service delivery whilst negotiable; the bottom group should aim to reach acceptable levels of performance with regard to service delivery Priority 2: For those municipalities who are and community engagement practices. functional but are not doing enough in critical areas of service, a support programme will be developed Towards responding to “Getting the Basics Rights” to progress to a higher path. Here the focus will be and recognizing that there are varying levels on building strong municipal administrative systems of performance amongst different categories and processes, and to ensure that administrative of municipalities for example with regard to service delivery, public participation processes, people whose performance is closely monitored. The oversight system for local government will be technical capacity, the need exists to prioritise the improved through creating real-time monitoring following standards towards improving municipal systems. Measures will be taken to ensure performance: that municipalities engage properly with their communities;

Figure 3: Categories resulting from CoGTA’s assessment of the performance of Municipalities

7

Report On The Presidential Local Government Summit Held On 18 September 2014 At Gallagher Convention Centre, Midrand, Johannesburg Priority 3: Municipalities that are performing well Recognising the need for inter-sphere collaboration, and control over their resources and grants. They assigned through the back-to-basics approach to will be encouraged to move beyond the basics, the spheres. In addition existing intergovernmental as they have the potential to transform the local platforms like MINMECs will be used to monitor and space economy and integrate and densify their review progress. communities towards a more advanced and sustainable development path; and A key intergovernmental development that will support the ‘Back to Basics’ Approach is the Inter- Priority 4: There will be a targeted and vigorous Ministerial Committee on Service Delivery (IMC). response to corruption and fraud, and a zero The IMC was established by the President and tolerance approach to ensure that these practices announced during the June 2014 SONA address to are rooted out. Supply chain management practices Parliament. Through this Committee, the selected in municipalities will be closely scrutinized. Where national departments will coordinate their approach corruption and mismanagement have been to fast-track local government service delivery, and increase their level of oversight of the proper these are decisively dealt with through provisions performance of service delivery functions. such as asset forfeiture and civil claims. CoGTA and its stakeholder partners will also work to change Drawing towards the conclusion of his address and practices in the private sector and enlist the support presentation, Mr Gordhan further indicated that of civil society to change the national morality. traditional leaders also have an important role to play in society and leadership of their communities. One key objective, he said, will be to build harmonious However Minister Gordhan also said …“we need relationships between traditional leadership and to change the perception that we are all corrupt local government. and fraudulent and demonstrate the political, administrative and legal will that we are determined In conclusion, Minister Gordhan reiterated that to act against those that do engage in corruption the “Back to Basics’ Approach is about how and fraud”. municipalities will elevate their performance to a new level of competence and performance. Municipalities, With regard to the highly intergovernmental nature he reiterated, must show compassion for the of the Back to Basics approach, the Minister emphasized that it was clear that all three (3) and the imperative is to create a climate where all spheres of government have an important role to sectors of society must work together to create a play in ensuring well-functioning municipalities. better life for all.

Figure 4: Priorities of the Back-to Basics Approach

8

Report On The Presidential Local Government Summit Held On 18 September 2014 At Gallagher Convention Centre, Midrand, Johannesburg 5. Learning from practice Steve Tshwete Local Municipality

Mr Mike Masina, Mayor of Steve Tshwete Municipality.

Mr Mike Masina, Mayor of Steve Tshwete municipality, Council. A Mayor’s Coordinating Forum was also shared with delegates some of the initiatives by the introduced to deal with pressing issues in the municipality that have helped them to perform well. municipality and ward councilors and Community Mayor Masina indicated that the municipality had Development Workers are invited to attend these developed a clear communication strategy which meetings when matters pertaining to their wards are inter alia comprises six mayoral outreaches held discussed. annually, annual satisfaction surveys and an SMS system to inform residents timeously of any service This presentation demonstrated the value of putting disruptions that may occur. into action real and meaningful communications with communities, and of building positive relationships The Mayor indicated that the municipality has a with local stakeholders. The focus on regular good working relationship with local print and meetings focused on giving immediate direction for electronic media. ‘I have a column in one of the local needed interventions for service delivery problems newspapers, where I inform the community about is an excellent good practice to be recommended. our plans, on a weekly basis, and the municipality also has a radio slot where executives speak about programmes and challenges of the municipality, and Presentation by Sarah Baartman receive feedback from residents. District Municipality

According to Mayor Masina, the municipality There followed a presentation made by Ms K E also held regular mayoral meetings where each Kekana, Executive Mayor of the Sarah Baartman department under it reported on successes and District Municipality (formerly known as Cacadu challenges they experienced, “… so that we can District Municipality) which highlighted some of the easily identify issues that need intervention”. following critical success factors achieved by the municipality: With regard to governance issues, Mayor Masina commented that an oversight committee consisting • of non-executive Councillors has been established from 2006/2007 – 2012/2013; for each of the portfolios of the six mayoral committee • The example displayed by leadership of the members, which meets on a monthly basis, where- district and disciplined execution of all council after their recommendations are submitted to resolutions;

9

Report On The Presidential Local Government Summit Held On 18 September 2014 At Gallagher Convention Centre, Midrand, Johannesburg • The sense of urgency inspired by management for the execution of certain functions, enables of the district which led to focused attention coherent service delivery to communities. Positive to the eliminating of irregular expenditure intergovernmental negotiation can reduce by introducing effective internal controls, appointment of highly skilled and experienced municipalities in the more advanced interests of building a better quality of life for their communities. and effective governance structures which are fully functional. Further, unearthing and disseminating more widely the examples of good practices being undertaken by local and district municipalities across the country would be an important contribution to the implementation of the back to basics approach.

Business and Local Government

Following these examples of good practices, the Chairperson Mr Bapela, Deputy Minister o f Traditional Affairs invited the business secto r to share their and challenges experiences in working with municipalities.

Business Unity South Africa

The President of Business Unity South Africa (BUSA), Mr. Jabu Mabuza raised a number of points in his address, with an emphasis on improved implementation of existing policies and programmes. He noted that one area in which there could be more progress was improved processes with regard Ms K E Kekana, Executive Mayor of Sarah Baartman District Municipality. planning issues such that would stimulate economic Mayor Kekana furthermore emphasized that a development as opposed to ‘frustrating’ investors. collaborative relationship exists between the Related to this matter, the business community Sarah Baartman district municipality and its local believed it could make a contribution in the local municipalities which is regulated through service government space, for example through the level agreements. She referred to examples where Business Adopt a Municipality Programme. the local municipality acts as ‘agents’ with regard

This presentation demonstrated how strong district governance can make a performance. The creation of shared services, service level agreements, and agency agreements

Mr Jabu Mabuza, President of BUSA. 10

Report On The Presidential Local Government Summit Held On 18 September 2014 At Gallagher Convention Centre, Midrand, Johannesburg He called for business to behave in an ethical way and stated that business is prepared to name, shame and isolate those that engage in corrupt practices. Mr Mabuza highlighted that the role of small business chambers in towns is very important, and the agreement between CoGTA, BUSA and SALGA has inspired many local chambers to start interacting with various municipalities.

For BUSA one area where municipalities could assist business more, was by reducing the cost Mr Sullivan O’Caroll, Chairperson of Nestle South Africa. of doing business e.g. through administered cost prices such as electricity. Mr Mabuza’s key proposal Mr. O’Carroll also informed the Summit that Nestlé was that business and government should consider SA supports 2 000 plus farmers in South Africa alone, an ‘intelligent system’ where district municipalities as they depended on farm products to produce their should identify opportunities for business growth and own products, and that the company spends about employment creation and that local chambers must R4 billion every year on procurement. He also stated be the lead agencies and catalyst in this endeavour. that the company managed to open two factories in the country, in partnership with local government Nestlé South Africa and other stakeholders, but that Nestlé SA “needs to strengthen our relationship with municipalities” in Opening his presentation, Mr. Sullivan O’Carroll, order to remain competitive. Chairperson and Managing Director of Nestlé South Africa, highlighted the importance of positive relationships between businesses and municipalities. Mr O’Carroll concluded by recommending the way Focusing on some characteristics of Nestlé, he forward as follows: indicated that the company employs more than 3 500 people in the country (South Africa), and 95% of • Collaborative engagement between Nestlé SA, their products are produced locally. Globally, Nestlé municipalities and other key stakeholders on key have about 500 factories world-wide and these rely issues; immensely on an uninterrupted supply of electricity • Improved and more frequent engagement and in order to manage their business competitively. communication; • Alignment on future business and community He added that power outages cost the company a lot developments; and of money as they resulted in a setback on production • Preventative measures and ongoing maintenance and compromises the quality of the products that of infrastructure. they produce. This reference reiterated the above speaker’s point, that reliable and well managed provision of electricity is a key concern for business considering its investment locations.

11

Report On The Presidential Local Government Summit Held On 18 September 2014 At Gallagher Convention Centre, Midrand, Johannesburg Sappi

Mr Thiel indicated that there are huge potential indicated that sappi is a global company exporting for exploring further areas of collaboration with approximately 1 million tons of pulp to BRICS municipalities, but that the collaboration should trading partners, and has a footprint in all provinces involve all relevant stakeholders, in order to in the country. Sappi is also one of the largest implement the ‘Back to Basics’ Approach. forest owners in the country and is in the process of planting trees with the assistance of private growers These three presentations from the business for commercial purposes in order to develop community highlighted the interest business small / private enterprises to make a difference in has in working more closely with local communities that are located away from economic government in the interests of partnerships for hubs. economic growth. However it is important to note that investment choices depend on the availability of Mr Thiel referred to the Mandeni municipality enabling infrastructure, and therefore, going forward, as being an example of a success story of a expanding business opportunities demands a partnership relationship between government and willingness from municipalities to recognize this business. He indicated that sappi operates a mill in potential and act upon it in the spirit of collaboration. the Mandeni municipality and that in terms of the partnership relationship sappi provides bulk water and supplies waste services for the municipality. In contrast, KwaDukuza municipality was cited as an example of where there is an ‘indifferent relationship’ between government and business, and that a major challenge experienced relates to the quality of electricity supply from the municipality.

Mr Alex Thiel, CEO of Sappi.

12

Report On The Presidential Local Government Summit Held On 18 September 2014 At Gallagher Convention Centre, Midrand, Johannesburg 6. Interactive Panel Discussion: Collaborative Governance, Planning and Delivery

The interactive panel discussion was facilitated by a collection of federal states – as we are a unitary Ms N Mokonyane, Minister for Water and Sanitation. Minister Mokonyane welcomed and introduced the and roles of each sphere of government within a following members who participated in the panel coherent overall system. discussions: Minister Mokonyane emphasized that in view of Ms Zoliswa Kota-Fredericks, Deputy Minister of the above, the panel discussion session gathered Human Settlements, Mr , Premier of KZN, Mr David Makhura, Premier of , of the three spheres of government and the Mr Mcebisi Jonas, Deputy Minister of Finance, Mr Chairperson of SALGA, to open a dialogue on the , Mayor of Johannesburg, Ms Patricia De Back to Basics approach, and how this will impact Lille, Mayor of the City of Cape Town, Mr Thabo upon their respective intergovernmental leadership Manyoni, the Chairperson of SALGA and Nkosi roles and responsibilities. Ngubane. She invited panel members to comment on Minister Mokonyane indicated as a point of what needs to be done differently to achieve departure for the discussion, the need to remind in practice the objectives of co-operative ourselves that whilst each sphere may be distinctive, governance, having due regard to the Constitutional with its own constitutional powers, the principle of principles of distinctiveness, interrelatedness and interdependence which binds all three spheres of and intervention powers set within regulatory and government. oversight frameworks. Without a certain hierarchy of powers within our government system, we would be

Ms N Mokonyane, Minister for Water and Sanitation.

13

Report On The Presidential Local Government Summit Held On 18 September 2014 At Gallagher Convention Centre, Midrand, Johannesburg Deputy Minister Z Kota-Fredericks emphasized functions which are failing to be implemented the importance of integrated development planning effectively; e.g. in municipalities that have low between the three spheres of government with capacity, and then concomitantly strengthening regard to the provision of human settlements. The of the role of districts as regional planning and Deputy Minister also elaborated that the role of ward implementation centres where such capacity committees are important with regard to housing exists. Mr Jonas emphasized that a different development processes and the development of mindset is required whereby municipalities should clear plans that speaks directly to the needs of begin to look at regional economies, as opposed to communities. local economies, in order to stimulate development.

Mr Senzo Mchunu, Premier of KwaZulu-Natal Responding to comments on how best to indicated that the key objects/principles of local coordinate sectoral responsibilities to ensure government as pronounced in the Constitution transformation in municipal spaces, the South should be internalized by all councilors in a manner African Local Government Association Chairperson, that seeks to facilitate the implementation of Cllr. Thabo Manyoni, said municipalities’ integrated development plans (IDPs) should become a strategic principles. ‘base-document’ to facilitate cooperation between the three spheres of government.

could be performing during the interactive panel The facilitator then requested Mr Parks Tau, Mayor discussion, Gauteng Premier, Mr. David Makhura of Johannesburg to give his views on the subject highlighted the importance of strengthening and of collaborative planning. Mayor Tau echoed the building institutions of cooperative governance views of the Deputy Minister of Human Settlements especially with regard to ‘game-changers’ such as and the Chairperson of SALGA with regard to the Municipal Infrastructure Grant (MIG) interventions. importance of better institutionalising the integrated development planning (IDP) system in the decision- Mr Mcebisi Jonas, Deputy Minister of Finance making processes of both national and provincial indicated that a challenge going forward will be government. how to turn metropolitan municipalities around to be engines of growth that drives development Access to, and the better utilisation of state-owned in the South African economy. Linked to this, he land to advance spatial transformation and land said, is the need to ‘recentralize’ certain municipal development in municipalities was also emphasized.

Mr Parks Tau, Mayor of Johannesburg.

14

Report On The Presidential Local Government Summit Held On 18 September 2014 At Gallagher Convention Centre, Midrand, Johannesburg Ms , Mayor of Cape Town.

Mayor Tau further explained the importance (PCC), the Presidential Infrastructure Coordinating of enhancing the use of spatial development Committee (PICC), Cabinet Makgotla, the Inter- instruments, in order to ensure the primacy of Ministerial Committee on Service Delivery and the municipal planning. Planning, he said, should not be MinMecs, to improve collaboration between the driven by the applicant, but by the plan, which can three spheres of government for improved service direct the involvement of all participates in the IDP delivery. and spatial development planning processes. Thereafter Nkosi Ngubane commented on the role In her contribution to the panel discussion , of traditional leaders as outlined in the Constitution. Cllr. Patricia de Lille, Mayor of Cape Town also He urged that all spheres of government must endorsed the importance of the ‘Back to Basics’ engage traditional leadership on its role in relation Approach, and her proposals included : to municipal governance. O ne of the key challenges raised by him was that memoranda of understanding • Formal consultative processes involving all three between traditional leaders/authorities with certain spheres of government are essential when new government departments were still not in place. infrastructure investments are planned e.g. schools and hospitals; In respect to land administration, Nkosi Ngubane • Municipalities must be afforded an opportunity noted that the introduction of the Spatial Land Use to make real contributions towards the design Management Act (SPLUMA) provides authority for local government on land administration, but some Division of Revenue Act which should not just concerns were raised by him about the implications be a one way grant stream coming from national for the payment of rates and taxes in traditional government; areas. • A cyclical review of local government legislation must be undertaken to understand blockages After these inputs, the facilitator, Ms Mokonyane arising from legislation and regulations; and requested panel members to highlight two issues • Urbanisation should be embraced and the in terms of their respective backgrounds that would opportunities and challenges in this regard make a difference in terms of the Back to Basics should be addressed collectively by all three approach. spheres of government. Responding to what would make a difference in terms of the “Back to Basics” Approach, Deputy Minister The facilitator, Ms Mokonyane emphasized the Z Kota-Fredericks indicated that the Department important role of intergovernmental structures of Human Settlements was currently working on a such as the Presidential Coordinating Committee Human Settlements Act. This Act, she said, is aimed

15

Report On The Presidential Local Government Summit Held On 18 September 2014 At Gallagher Convention Centre, Midrand, Johannesburg at addressing issues of cooperative governance The Mayor of Cape Town, Ms Patricia De Lille in human settlements development, issues of emphasised the need for improved communication coordinated integration, as well as proposing more between levels of leadership through enhancing centralized planning where applicable. inclusivity in existing intergovernmental structures by inviting metropolitan Mayors to participate in Mr Senzo Mchunu, Premier of KwaZulu-Natal Cabinet Makgotlas and MinMecs. Secondly, she emphasized the need for more direct interaction and urged that customer satisfaction surveys needs to be communication with communities and the need for conducted continuously, and an appeal was made increased effort to encourage business to invest in that the Programme of Action for “Back to Basics” municipalities. should ensure that all spheres of government, and especially local government, become more Deputy Finance Minister, Mr. Mcebis i Jonas said the responsive to the needs of communities. introduction of the Rapid Response System, or War Room, by CoGTA to facilitate rapid responsiveness Nkosi Ngubane called for increased efforts to to service delivery failures by national government harmonise the relationship at local government through to ward level will make a huge difference level between local government and the traditional authorities. He also urged the importance of communities and business. recognizing the potential of land for food security.

The Chairperson of SALGA, Mr Thabo Manyoni, During her concluding remarks of the panel indicated that the ‘Back to Basics’ Approach must discussion, Minister Mokonyane proposed that the be translated into a concrete programme with comments and inputs made by panelists be captured as part of the outcomes of the Summit to inform resources towards implementation thereof. Mr the ‘Back to Basics’ Approach going forward. She Manyoni also emphasised the need for metropolitan municipalities to develop longer term economic would be inspired and committed to putting people strategies beyond the IDPs, as metros face the to be transparent in their conduct towards servicing urban economy. the basic needs of communities.

The Premier of Gauteng, Mr David Makhura This panel discussion illustrated the importance suggested there should be no more legislation for all of the participants placed on strengthened local government, but rather more focus on the intergovernmental collaboration for planning and implementation of existing legislation, and secondly, spatial transformation of both urban and rural made emphasis on the need for political parties to spaces. The need to elevate the role of spatially appoint effective leadership for municipalities. informed development planning as an instrument to effect inclusive growth and development was The Mayor of Johannesburg, Mr Parks Tau, re-stated made clear, as was the importance of including the need for effective integrated planning from spatial, communities in local area planning and decision- budgeting, infrastructure, human settlements, and making. transport perspectives. Strengthened integrated planning would ensure the optimal functioning of There was also a clear sense of discomfort with the cities, and the IDP must be used as a key instrument matter of land access, which is a key lever needed to to facilitate this integrated planning. The Mayor advance the cause of spatial transformation. Greater control over access and use of land should lead to the development of an active and engaged citizenry higher levels of social and economic integration, in municipalities, so that residents cease to be passive recipients of local government services. for the convergence of the necessary sectoral investments within targeted spaces.

16

Report On The Presidential Local Government Summit Held On 18 September 2014 At Gallagher Convention Centre, Midrand, Johannesburg 7. Working Groups debate the Back to Basics Agenda

This section of the report provides a high level educational, empowerment and liaison activities with groups, and the role they played in advancing the their communities regarding their own development. understanding of delegates of the priorities and new thinking required for the range of Back to Basic Another recurring theme was the importance Commitments. of functional and honest councils, with much more effort to be made to work within appropriate boundaries regarding the political/ administrative interface. Part of this element Working Group 1: Mayors and Traditional Leaders is greater role clarity for the troikas, and more Working Group 2: Chief Whips and Speakers effort to be put into building democratic cohesion Working Group 3: Technical Directors and discipline across party, civic, stakeholder and Working Group 4: Municipal Managers business lines.

Much cross-cutting emphasis was placed on the Each working group had the same purpose: to urgency of building and maintaining essential provide a platform for discussion as to how each infrastructure for growth and far better levels group of leaders, politically and administratively, of integration for service delivery. Key to this would be driving the agenda for change within is stability in appointments and the right skilled people for the job as well as far greater emphasis government, the priority is to properly implement its on value for money and tight monitoring of the work governing legislation and carry out its Constitutional of contractors. This is a major area for creating mandate. decent living conditions and a clean and functional space to live and work and play for all communities. Back to Basics roles and responsibilities for Commitment to greater inter-sectoral collaboration municipalities means, therefore, that active and enlisting the support of professional bodies is commitments must be made to actively implement also a priority to advance municipalities out of level three dysfunctionality status. that underpin fully functional municipalities. Key questions were formulated for each group to assist Similarly, in the discussions, the scope of which was wide- ranging and intended to underpin the reform process governance practices will require continued close ‘to do things differently’ going forward. working relations between CoGTA and departments such as the National Treasury and the Auditor- A key theme that emerged amongst all groups was the urgency of engaging with communities responsibilities in support and monitoring, also of – leaders (Mayors and Councillors) are the catalyst disciplining rogue elements within government. A for change and must drive the agenda to ‘put urgent, or municipalities will not advance beyond needs and transparent and meaningful participation level three, dysfunctional, or stabilize to reach in local planning and budgeting decision-making beyond level two. processes. This role also applies to the traditional

17

Report On The Presidential Local Government Summit Held On 18 September 2014 At Gallagher Convention Centre, Midrand, Johannesburg An aspect that was raised in more than one working In conclusion, the varied and robust debates within group was that the role of Provincial and National Government to support local government sense of unity of purpose for the reform agenda for needs to be enhanced. local government. The joint commitments made by each sphere, as articulated in the Statement of Intent Thus a key challenge for local government overall will, going forward, assist greatly in the development is ensuring that political, administrative, technical of the Back to Basics Programme of Action. the many ‘road-blocks’ experienced at local level, Full reports of the outcomes of the working groups and ensure these matters are properly escalated are available on the CoGTA website, and detailed to provincial and national government through highlights are attached in Appendix A. appropriate IGR channels, and especially to the IMC on Service Delivery. Concomitantly, each sphere must be proactive, responsive and alert to the fact that local government cannot work alone to uplift municipal standards, and collective effort is required to build transformed municipal spaces.

18

Report On The Presidential Local Government Summit Held On 18 September 2014 At Gallagher Convention Centre, Midrand, Johannesburg 8. Statement of Intent and Conclusion

The Back to Basics Summit was a great success due to the enthusiastic participation of the country’s leadership, political and administrative, as well as that of many of our key stakeholders. The Summit concluded in a positive endorsement of the back to basics change agenda through the delegates’ adoption of the Statement of Intent, the importance of leadership, accountability and reconnecting with communities as key ingredients to the implementation of the back to basics.

Delegates also committed to the forthcoming Programme of Action. The key issues emerging from the discussions, as outlined in this Report, will form the basis for inclusion in the forthcoming Programme of Action. This Action Plan will be used as an instrument to practically direct the implementation of reforms by municipalities. The Action Plan will also clarify the assignment of responsibilities per sphere and create a platform for action priorities that will build our responsive, caring and accountable local government going forward.

In conclusion, the delegates at the Summit fully endorsed that:

‘We embrace the back to basics approach in addressing the challenges facing Local Government and declare to strengthen local government in order to move our country forward’.

19

Report On The Presidential Local Government Summit Held On 18 September 2014 At Gallagher Convention Centre, Midrand, Johannesburg Appendix A: Aspects emanating from the Working Groups

Key specific aspects emanating from the different Finally, Mayors must lead in building relationships working groups, in addition to the crosscutting with other key role players, in particular Traditional aspects described above, include the following: Leaders, and ensure that the participation of Traditional Leaders in core municipal processes is With regard, to the Working Group on Mayors and strengthened. Traditional Leaders ,to lead in the implementation of Back to Basics requires of Mayors to become chief It was highlighted that it is the responsibility of both coordinators and facilitators in ensuring that all from the Mayors and Traditional Leaders to ensure ward level understand the approach. harmonization of relations between Councilors and Traditional leaders. Traditional Leaders have a key They need to engage directly with communities and role to play in development planning, in particular, ensure implementation through the offices of the the spatial planning of land that fall within their Municipal Managers. With regards to development jurisdiction. They have to work with all institutions planning, Mayors must play a leading role to ensure and assist in the planning and determination of that the IDPs are informed by the needs of wards where projects would be implemented. communities and that municipal budgets are aligned accordingly. Mayors must set the tone for Traditional Leaders should attend Council meetings good governance by leading the fight against as required and participate in structures that have corruption and maladministration through the been established to promote local participatory development and enforcement of consequence democracy, i.e. Ward Committees. With regards to management measures. the implementation of government programmes, The effective implementation of core municipal Traditional leaders must take the lead in the processes require of Mayors to play an oversight establishment of initiation schools; play a lead role in role in ensuring that the municipal administration is the implementation of moral regeneration depoliticized and that government is insulated programmes as well as awareness creation and against undue party political influence in civic education on HIV/AIDS issues. As part of determining development priorities and access to enhancing performance, CoGTA must facilitate the services. Part of this must be done through the development and implementation of norms and appointment of competent personnel, in particular standards that will assist in the regulation of support Municipal Managers, Chief Financial Officers as well measures for Traditional Leaders, i.e. as Technical Directors. Standardization of the payment of allowances.

Mayors must lead in all endeavors geared towards The Working Group consisting of Speakers and the enforcement of legislative compliance, Council Whips proposed that CoGTA develop i.e.implementation of regular community guidelines on the roles and responsibilities of engagement and feedback mechanisms, Council Whips, and give consideration to regulating strengthening of the intergovernmental structures, their roles. With respect to meetings of the Troika it etc. Further, to ensure transparency with regards to was agreed that the mechanism of coordination the required performance standards, Mayors must between the Troika offices needs to be clarified. ensure that their Performance Agreements are cascaded to all Councillors, so that they obtain an Whips have a joint responsibility with Speakers to understanding of what is required of their deal with matters of discipline amongst councilors. performance and how it will be measured. Council Whips and Speakers must ensure that capacity is built amongst councilors.

20 Report On The Presidential Local Government Summit Held On 18 September 2014 At Gallagher Convention Centre, Midrand, Johannesburg Both Speakers and Counc il Whip s complained v. Procurement of Services: there is currently more that their offices are not well resourced financially focus on competing prices of service providers than and with personnel. Speakers need to strengthen on the quality of services to be provided when their political oversight responsibilities over the making procurement decisions. There is poor executive through section 79 committees. Where monitoring of the work of contractors which the Back to Basics programme is premised on an compromises value for money. active role of government in facilitating ward based participation processes, the feasibility of having a vi. Review of policies and legislation: the MIG special ward-based budget dedicated for projects funding model is not aligned to the performance of identified by communities need to be considered. municipalities, the Supply Chain Management policy as outlined in the MFMA is not practicable and there Ward committees are crucial to this process, and is a discrepancy between the budget size and need to play an active role. It was argued that ward financial delegations to Technical Directors. councillors’ roles and responsibilities are full time in nature as they work on day to day community The Working Group of Municipal Managers issues. The matter of full time councilors will need a identified three key high level issues that need to be thorough consideration because it has huge considered which are: financial implications and also it depends on the size and type of municipality. i. Political interference, e.g. the appointment of unqualified people by Council and to be protected The issues raised in the Working Group of to say ‘No’ to political leaders not following the rule Technical Directors included the following: of law.

i. Functionality of Technical Services Units: the ii. Review the funding model, e.g. a rural municipality current status is fragmented technical units or without revenue needs support to deal with issues functions in some municipalities, the lack of of operations and maintenance. There are appropriate skills and equipment in municipalities municipalities that cannot generate which negatively affects the quality of series and revenue on their own – a funding model needs to be poor contract management practices. developed for those municipalities.

ii. institutional development in Technical Services: iii. Over-regulation of the LG sector needs to be there is a serious mismatch of the staff complement reduced. There are many regulations that Local in municipalities, e.g. there is more support towards Government is faced with; National departments the recruitment of staff in Supply Chain continue to regulate municipalities without Management, Human Resources, etc. compared to regulatory impact studies - which impacts on their the Technical Unit dealing with engineering services, ability to implement the policies effectively. National water and sanitation, electricity, waste management departments must consult with CoGTA before they which is critical to municipalities’ capacity to deliver impose regulations on municipalities. on their core mandate. Other key areas raised in the Working Group iii. Infrastructure Planning: planning often only starts included: after the funding is transferred which is too late as plans often cannot be implemented the same year i. That economic development should feature as a they are developed. There is also non-integrated priority part of the back to basics approach. planning, e.g. for housing development and provision of water and sanitation services. Also the ii. The need of the national and provincial failure of national sector departments to consult governmental spheres to support local government, municipalities on development-related matters, e.g. e.g. the roles and responsibilities of these spheres the Department of Mineral Resources not consulting to support Local Government with regard to Back to municipalities before issuing mining rights. Basics need to be enhanced and the participation of sector departments in the IDP also needs to be iv. Infrastructure Maintenance: there is a lack of increased. scheduled maintenance and no funding earmarked for refurbishing of infrastructure.

21 Report On The Presidential Local Government Summit Held On 18 September 2014 At Gallagher Convention Centre, Midrand, Johannesburg iii. Municipal performance is also influenced by iii. Regular financial recording and reconciliation many external environmental factors: e.g. whether activities performed, e.g. “perform monthly electricity is provided by the municipality or Eskom creditors reconciliation, review age analysis and impacts on the ability of the municipality to collect report on payment of creditors within 30 days”; revenue; households that are served by Eskom do not pay for other services and this impact on the iv. Accurate, reliable and credible financial financial viability of municipalities; urbanisation is management and reporting, e.g. “prepare cash also impacting on service delivery, e.g. many backed budgets”; townships are not formalized; the causes of service delivery protests need to be more carefully analysed v. Assurance provided by Internal Audit and Audit - e.g. are the protests driven more by anger and Committee, e.g. “an established and functional frustration over high unemployment than lack of audit committee that monitors the implementation access to services? of the internal audit plan”;

iv. With reference to skills retention and attraction, vi. Good financial governance and oversight, e.g. competent and qualified personnel must be “Quarterly reports need to be submitted to Council employed, specifically regarding CFOs and MMs, on Grant Funding received, committed, invested but the current Regulations are posingchallenges in and spent, and budget performance variances”; terms of salaries. With regard to the filling of the 6 top posts by competent personnel, it was stated vii. Management of maladministration, fraud and that it takes time to apply performance corruption, e.g. to have a Fraud and Corruption management requirements with personnel that are Strategy in place. already in the system. Support required by CFOs to implement the Back to v. There is a need to agree on indicators regarding Basics approach was also identified. Key points the performance management system where included that CFOs should not be victimized for information in terms of agreed on indicators will be reporting fraud, and that the maintenance of viewed as reliable by the Auditor-General. municipal infrastructure must be planned and budgeted for before the infrastructure is vi. Concerning the relationship with Organised constructed. Labour, IMATU indicated that MMs need to set up regular meetings with Labour.

The Working Group of Chief Financial Officers (CFOs) identified the range of tasks that need to be undertaken as part of an action plan to implement the Back to Basics approach by CFOs.

The areas identified and examples of tasks include: i. A healthy financial position, e.g. “Review and Implement the revenue raising and collection strategy”;

ii. Expenditure in accordance with budget and service delivery priorities (IDP), e.g. Capital expenditure and implementation of Capital Projects must be effectively monitored and reported on to the Infrastructure Portfolio Committee (MFMA Circular 71);

22 Report On The Presidential Local Government Summit Held On 18 September 2014 At Gallagher Convention Centre, Midrand, Johannesburg Appendix B Attendees to the Presidential Local Government Summit: 18 September 2014

The following delegates attended the Summit:

• National Ministers • Deputy Ministers • Premiers of the provinces • Chairperson of the National Council of Provinces • Deputy Speaker of the National Assembly • Members of the Executive Councils (MECs) for local government • Deputy Chairperson of the NCOP • Chairpersons of Parliamentary Committees • Chairperson of the National House of Traditional Leaders • Mayors • Municipal Speakers • Council Whips • Chairperson of the South African Local Government Association (SALGA) • Members of Traditional Councils • Municipal Managers • Municipal CFOs • Members of Civil Society Organisations • Business Sector Leaders • Representatives of municipal Organised Labour • Representatives of Professional Bodies • Members of the donor community.

In terms of statistics regarding municipal representation at the Summit it was noted that 236 Mayors, 102 Municipal Speakers, 165 Council Whips, 233 Municipal Managers, 151 Chief Financial attended the Summit.

23

Report On The Presidential Local Government Summit Held On 18 September 2014 At Gallagher Convention Centre, Midrand, Johannesburg