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Research on Exploring Factors Affecting Governance in Local Government Institutions

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Research on Exploring Factors Affecting Governance in Local Government Institutions Final report: Factors affecting local governance RESEARCH ON EXPLORING FACTORS AFFECTING GOVERNANCE IN LOCAL GOVERNMENT INSTITUTIONS FINAL REPORT March 2020 Local Government Sector Education and Training Authority (LGSETA) LGSETA/GOVERNANCE/10/0028 Contact Details Web www.cityinsight.co.za Michael Sutcliffe [email protected] Tel: +27 82 440 5203 Sue Bannister [email protected] Tel: +27 82 854 6845 March 2020 1 Final report: Factors affecting local governance Table of Contents TABLE OF CONTENTS .................................................................................................................... 2 EXECUTIVE SUMMARY ................................................................................................................. 8 1. INTRODUCTION ................................................................................................................... 13 1.1 METHODOLOGY .................................................................................................................... 14 2. GOOD LOCAL GOVERNANCE ................................................................................................ 17 3. LOCAL GOVERNANCE: THE SOUTH AFRICAN LEGISLATIVE AND POLICY CONTEXT................... 28 3.1 A REPRESENTATIVE SYSTEM OF LOCAL DEMOCRACY ........................................................................ 30 MUNICIPAL ELECTORAL SYSTEM: STRICTLY PROPORTIONAL REPRESENTATION ....................................................... 30 3.2 COMMUNITY ACCOUNTABILITY AND PARTICIPATION ....................................................................... 33 COMMUNITY INVOLVEMENT A PREREQUISITE ................................................................................................. 33 MUNICIPAL DEMARCATION ......................................................................................................................... 33 PARTICIPATION IN PLANNING ....................................................................................................................... 34 ESTABLISHMENT OF WARD COMMITTEES ....................................................................................................... 34 COMMUNITY DEVELOPMENT WORKERS ........................................................................................................ 34 3.3 ETHICAL CONDUCT ................................................................................................................. 35 ETHICAL VALUES ENTRENCHED IN CONSTITUTION ............................................................................................ 35 LOCAL GOVERNMENT INTEGRITY MANAGEMENT FRAMEWORK ......................................................................... 35 3.4 GOOD PLANNING PROCESSES .................................................................................................... 36 PLANNING AND RELATED FRAMEWORKS ........................................................................................................ 36 3.5 COMPETENT ADMINISTRATIONS ................................................................................................ 36 NATIONAL DEVELOPMENT PLAN .................................................................................................................. 36 MUNICIPAL RESPONSIBILITIES ...................................................................................................................... 37 ADMINISTRATIVE GUIDELINES ...................................................................................................................... 37 THE RIGHT TO KNOW MUNICIPAL DECISIONS ................................................................................................... 37 LOCAL GOVERNMENT MANAGEMENT IMPROVEMENT MODEL .......................................................................... 38 3.6 SOUND FINANCIAL MANAGEMENT ............................................................................................. 38 MUNICIPAL FINANCE MANAGEMENT ACT ...................................................................................................... 38 MUNICIPAL STANDARD CHART OF ACCOUNTS ................................................................................................ 40 INFORMATION PROVISION ........................................................................................................................... 41 3.7 DEVELOPMENTAL AND SUSTAINABLE SERVICE DELIVERY ................................................................... 41 CONSULTATION ......................................................................................................................................... 41 DEVELOPMENTAL RIGHTS............................................................................................................................ 42 SERVICE DELIVERY AND BUDGET IMPLEMENTATION PLAN................................................................................. 42 FREE BASIC SERVICES ................................................................................................................................. 42 NATIONAL STRATEGIC FRAMEWORK FOR COMPREHENSIVE MUNICIPAL INFRASTRUCTURE MANAGEMENT ................ 43 MUNICIPAL INFRASTRUCTURE GRANT ........................................................................................................... 43 3.8 CONCLUDING COMMENTS ........................................................................................................ 44 4. LOCAL GOVERNANCE PROGRESS AND CHALLENGES IN SOUTH AFRICA.................................. 45 4.1 INTRODUCTION ..................................................................................................................... 45 4.2 A REPRESENTATIVE SYSTEM OF LOCAL DEMOCRACY ........................................................................ 46 PARTY REPRESENTATION ............................................................................................................................. 46 CANDIDATES CONTESTING ELECTIONS ............................................................................................................ 47 NUMBER OF VOTERS REGISTERING FOR ELECTIONS .......................................................................................... 47 March 2020 2 Final report: Factors affecting local governance NUMBER OF BALLOTS CAST IN 2016 ELECTION ............................................................................................... 48 4.3 COMMUNITY ACCOUNTABILITY AND PARTICIPATION ....................................................................... 52 INCREASE IN PROTESTS ............................................................................................................................... 52 4.4 ETHICAL CONDUCT ................................................................................................................. 55 4.5 GOOD PLANNING PROCESSES .................................................................................................... 57 4.6 COMPETENT ADMINISTRATIONS ................................................................................................ 57 MUNICIPAL COMPETENCY LEVELS ................................................................................................................. 58 MUNICIPAL SECTION 139 INTERVENTIONS ..................................................................................................... 59 4.7 SOUND FINANCIAL MANAGEMENT ............................................................................................. 60 SCALE OF MUNICIPAL BUDGETS .................................................................................................................... 61 GRANT FUNDING ....................................................................................................................................... 62 MUNICIPAL INFRASTRUCTURE GRANT (MIG) ................................................................................................. 63 AUDITS .................................................................................................................................................... 65 TRIGGERS FOR FINANCIAL INTERVENTION ....................................................................................................... 65 FINANCIAL COMPETENCE ............................................................................................................................. 67 OTHER FINANCIAL CHALLENGES .................................................................................................................... 68 4.8 DEVELOPMENTAL AND SUSTAINABLE SERVICE DELIVERY ................................................................... 68 5. CONSTRAINING FACTORS AFFECTING LOCAL GOVERNANCE ................................................. 73 5.1 INTRODUCTION ..................................................................................................................... 73 5.2 INEQUALITY, POVERTY AND UNEMPLOYMENT ............................................................................... 73 POVERTY LEVELS ........................................................................................................................................ 73 INEQUALITY .............................................................................................................................................. 75 WEALTH: INCOME TAX BASES ...................................................................................................................... 76 BUILDING A DEVELOPMENTAL STATE ............................................................................................................
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