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cooperative governanceDepartment:Cooperative GovernanceREPUBLIC OF SOUTH AFRICA

ANNUAL PERFORMANCE PLAN2018/19

12018/19 - Annual Performance Plan

cooperative governanceDepartment:Cooperative GovernanceREPUBLIC OF SOUTH AFRICA

DCOGANNUAL PERFORMANCE PLAN

2018/19

2 Department of Cooperative Governance3

It gives me great pleasure to present the Annual Performance Plan (APP) of the Department of Cooperative Governance for 2018/19. This year marks the 100th anniversary of the birth of democratic South Africa’s first president, Nelson Rolihlahla Mandela. What better way to honour him than by ensuring that we do indeed create a better life for all South Africans. We work towards building a future where all citizens have equal access to services, and one in which all citizens have a share in our country’s wealth.

We are relentless in our pursuit of the goals of the National Development Plan. Outcome 9 has had a number of notable successes. The Community Works (CWP) Programme has gone a long way towards ensuring social and economic inclusion. We aim to increase the effectiveness of the CWP through the development of partnerships to enhance training and skills development.

To further ensure that we execute our mandate of radical economic transformation, we have added the pillar of Local Economic Development to the Back-to-Basics programme. During the forthcoming year the Local Economic Development (LED) focus will be on Regional Economic Development Planning to improve integrated planning in secondary cities and mining towns. The potential of cities is maximised when there is alignment and integration in investments in transportation, human settlements, resilient infrastructure networks, and

land governance, which are the main vehicles of urban development. Investments in people, the economy and the environment can work together to transform the quality of life in communities. During this period, the Integrated Urban Development Framework (IUDF) will also be rolled out in identified secondary cities.

I have pleasure in recommending the 2018/19 Annual Performance Plan. As we work towards the end of this term of administration, the APP sets the Department of Cooperative Governance on a higher service delivery trajectory. It keeps faith with the ethos of a new dawn that is upon us. We believe our efforts will accelerate progress towards a more prosperous, equitable and just South Africa.

Dr Zwelini L Mkhize, MP

Executive Authority

Dr Zwelini L Mkhize, MP

Minister’s Foreword


The National Development Plan (NDP) sets out the long-term vision this government has for South Africa. The Medium Term Strategic Framework (MTSF) 2014–2019 is the first full five-year programme of implementation towards the realisation of the goals of the NDP. The Department of Cooperative Governance’s role is encapsulated in Outcome 9, which calls for a ‘responsive, accountable, effective and efficient developmental local government system.’

As we head towards the end of this term of administration, the 2018/19 Annual Performance Plan adds new impetus towards the realisation of this goal. The Department of Cooperative Governance as the custodian of local government is entrusted with the transformation and development of the local government sphere.

The Department has overseen the successful hosting of the 2016 local government elections and its aftermath. It has taken steps to create an environment in which radical economic transformation can flourish. A key element of this is the adoption of Local Economic Development as the sixth pillar of the Back-to-Basics programme. This will ensure that each and every municipality considers LED as part and parcel of its everyday functions.

The past year has seen the Integrated Urban Development Framework (IUDF) unit being capacitated to achieve its objectives of creating prosperous towns

and cities by restructuring the space economy. Towards this end, the IUDF will provide support to four identified secondary cities.

The Back-to-Basics programme forms a cornerstone of the Department’s approach to supporting local government. Municipalities will be monitored on their progress towards achieving their stated objectives.

Support measures in furtherance of institutional development include the implementation of municipal specific revenue plans and the establishment of functional ward committees, in selected municipalities.

It would be amiss not to mention our plans for disaster management. The past year has seen the Department deal with everything from a crippling drought to runaway fires, which have caused billions of rands in damage and destruction. Among the steps to be taken will be the assessment of municipalities on their capacity to implement the National Fire Safety and Prevention Strategy.

We will continue to provide leadership towards the rollout of the Community Work Programme. This will include the provision of training, the formation of partnerships and an increase in the provision of work opportunities, according to available funds.

I look forward to providing the requisite leadership to ensure the effective implementation of the 2018/19 Annual Performance Plan.

Mr DMG Mashitisho

DIRECTOR-GENERAL

Mr DMG Mashitisho

Director-General


Official Sign-offIt is hereby certified that:

The 2018/19 Annual Performance Plan was developed by the management of the Department of Cooperative Governance under the guidance of the Honorable Minister of Cooperative Governance and Traditional Affairs, Dr Zwelini L Mkhize, and prepared in line with the 2015-2020 revised Strategic Plan and 2014-2019 Medium Terms Strategic Framework (MTSF). This document accurately reflects the performance targets of the Department, given the resources made available in the budget for 2018/19.

Ms D Snyman

Chief Financial Officer

Mr T Faba

Head Official: Planning

Mr DMG Mashitisho

Director-General: DCoG

Mr A Nel, MP

Deputy Minister

Approved by:Dr Zwelini L. Mkhize, MP

Executive Authority


TABLE OF CONTENTSMinister’s Foreword ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 2

Official Sign-off ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 4

Table of Contents ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 5

Acronyms. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 6

PART A: Strategic Overview1. Vision .. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 8

2. Mission ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 8

3. Values.. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 8

4. Strategic Outcome-Orientated Goals ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 8

5. Alignment of Strategy with National Priorities . ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 9

6. Legislative and other Mandates ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... . 12

7. Updated Situational Analysis ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... . 14

7.1. External environment .. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 14

7.2. Internal environment ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 19

7.3. Description of the strategic planning process.. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 20

Overview of the Departmental Budget and MTEF Estimates ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... . 22

PART B: Programme and Sub-Programme Performance Plans

Programme 1: Administration ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... . 24

Programme 2: Regional and Urban Development and Legislative Support.. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... . 27

Programme 3: Institutional Development ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... . 33

Programme 4: National Disaster Management Centre .. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... . 44

Programme 5: Local Government Support and Interventions Management ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... . 50

Programme 6: Community Work Programme. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... . 56

Part C- Link to Other Plans68. Links to long-term infrastructure grants and other capital plans ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... . 63

9. Conditional grants. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... . 63

Public entities reporting to the Minister .. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... . 65

PART D: Annexures: to the Annual Performance Plan8010. ANNEXURE A: Technical Indicator Descriptions per Programme.. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... . 68

11. ANNEXURE B: Changes to the 2015-2020 Strategic Plan ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... . 81


Acronyms

AG Auditor-General

AGSA Auditor-General South Africa

APP Annual Performance Plan

B2B Back-to-Basics

CoGTA Cooperative Governance and Traditional Affairs

CWP Community Work Programme

DBSA Development Bank of Southern Africa

DG Director-General

DoRA Division of Revenues Act

DPME Department of Planning, Monitoring and Evaluation

ENE Estimates of National Expenditure

HOD Head of Department

HRM Human Resource Management

IGR Inter-governmental Relations

IUDF Integrated Urban Development Framework

KPA Key Performance Area

KPI Key Performance Indicator

LED Local Economic Development

LGES Local Government Equitable Shares

MDB Municipal Demarcation Board

M&E Monitoring and Evaluation

MEC Members of Executive Council

MIG Municipal Infrastructure Grant

MINEXCO Minister and Executive Committee

MIS Management Information System

MISA Municipal Infrastructure Support Agent

MoU/MoA Memorandum of understanding/Memorandum of Agreement

MPAC Municipal Public Accounts Committee

MPAT Management Performance Assessment Tool

MPRA Municipal Property Rates Act

MSA Municipal Systems Act

MSIG Municipal Systems Improvement Grant

MTEF Medium-Term Expenditure Framework

MTSF Medium-Term Strategic Framework

NDMC National Disaster Management Centre

NDP National Development Plan

NPO Non-Profit Organisation

NT National Treasury

PMU Project Management Unit

SACN South African Cities Network

SALGA South African Local Government Association

SAQA South African Qualifications Authority

SCM Supply Chain Management

SLA Service Level Agreement

StatsSA Statistics South Africa

TID Technical Indicator Description

TMC Top Management Committee

PART A: Strategic Overview


PART A: Strategic Overview1. Vision

A functional and developmental local government system that delivers its constitutional and legislative mandates within a system of cooperative governance.

2. Mission

Our mission is to ensure that all municipalities perform their basic responsibilities and functions without compromise by:

• Putting people and their concerns first

• Supporting the delivery of municipal services to the right quality and standard

• Promoting good governance, transparency and accountability

• Ensuring sound financial management and accounting

• Building institutional resilience and administrative capability.

3. Values

Guided by the spirit of Batho Pele (People First), our values are:

• Commitment to public service

• Integrity and dedication to fighting corruption

• Hands-on approach to dealing with local challenges

• Public-participation and people-centred approach

• Professionalism and goal orientation

• Passion to serve

• Excellence and accountability.

4. Strategic Outcome-Orientated Goals

The priorities of the Department are aligned with the broad policy priorities of the country, as outlined in the 2014-2019 Medium-Term Strategic Framework (MTSF). The Department drives the implementation of MTSF by coordinating Outcome 9 (through the Technical Implementation Forum and the Ministerial Implementation Forum) with the support of sector Departments and provinces to realise the MTSF vision, Back-to-Basics (B2B) programme and strategic outcome-orientated goals through the implementation of strategic outcome-orientated goals and programme-strategic objectives over the Medium-Term Expenditure Framework (MTEF). The Department aims to realise the following strategic outcome-orientated goals through the rollout of the following related programme strategic objectives:

Table 1: Linking strategic outcome-orientated goals with Programme strategic objectives

Strategic outcome-orientated goal (s) Related strategic objective (s)

Effective and efficient internal corporate governance processes and systems (SOG 1)

Improve DCoG governance process and systems by March 2020 (SO 1.1)


Strategic outcome-orientated goal (s) Related strategic objective (s)

Lead and support the creation of prosperous cities and towns by restructuring the space economy (SOG 2)

Facilitate the restructuring of municipal space economy through integrated development planning and spatial targeting by March 2020 (SO2.1)

Support the creation of an enabling environment for municipalities to achieve inclusive economic development through the implementation of initiatives of the National Framework for LED by March 2020 (SO 2.2)

Foster the creation of a functional local government system through enhanced accountability and transparency (SG 3)

Deepen the relationship between citizens and local government through improved citizen engagement mechanisms by March 2020 (SO 3.1)

Improve accountability in the local government system by coordinating reporting on municipal performance by March 2020. (SO 3.2)

Build institutional resilience and initiate the next phase of institution building (SG 4)

Strengthen the functionality of municipalities through the implementation of administrative and institutional systems by March 2020 (SO 4.1)

Implement initiatives to improve financial sustainability and revenue management in local government by March 2020 (SO 4.2)

Entrench a culture of good governance and instil a new morality of service and integrity in Local Government (SG 5)

Promote good governance through strengthening anti-corruption measures in local government by March 2020 (SO 5.1)

Coordinate effective integrated disaster management and fire services (SG 6)

Improve the system of disaster management and fire services across government by March 2020 by (SO 6.1):

• Developing, strengthening, and managing of regulatory frameworks and institutional arrangements

• Promoting capacity building through awareness, education, training and research

• Promoting Disaster Risk Reduction through a well-coordinated and integrated planning process, with specific focus on mitigation, preparedness, response and recovery

• Guiding the development of a comprehensive information management and communication system and establish integrated communication links with relevant role players

Ensure significant improvements in service delivery through sound infrastructure management (SG 7)

Coordinate and facilitate sector collaboration for infrastructure development at municipal level to extend services to unserved communities by March 2020 (SO7.1)

Local public employment programmes expanded through the Community Work Programme (SG 8)

Provide one million work opportunities through effective and efficient programme management and strategic partnerships by March 2020 (SO 8.1)

5. Alignment of Strategy with National Priorities

The Department contributes to the achievement of national priorities as outlined in Government’s five-year strategy: the 2014-2019 MTSF, specifically Outcome 9: A responsive, accountable, effective and efficient developmental local government system.


The Department contributes towards the following MTSF: Outcome 9 sub-outcomes:

• Sub-outcome 1: Members of society have sustainable and reliable access to basic services.

• Sub-outcome 2: Strengthened intergovernmental arrangements for a functional system of cooperative governance for local government.

• Sub-outcome 3: Democratic, well-governed and effective municipal institutions capable of carrying out their developmental mandate according to the Constitution.

• Sub-outcome 4: Sound financial management.

• Sub-outcome 5: Local public employment programmes expanded through the Community Work Programme.

MTSF Outcome 9:

Sub-outcomes

Related Strategic Outcome-Oriented

Goal (s)

Related Strategic Objective (s)

Related Key Performance indicators

Sub-outcome 1: Members of society have sustainable and reliable access to basic services.

Ensure significant improvements in service delivery through sound infrastructure management

(SG 7)

Coordinate and facilitate sector collaboration for infrastructure development at municipal level to extend services to unserved communities by March 2020 (SO7.1)

Number of targeted MIG receiving municipalities monitored for compliance with DoRA

Sub-outcome 2: Strengthened Intergovernmental arrangements for a functional system of cooperative governance for local government;

Foster the creation of a functional local government system through enhanced accountability and transparency (SG 3)

Deepen the relationship between citizens and local government through improved citizen engagement mechanisms by March 2020 (SO 3.1)

Improve accountability in the local government system by coordinating reporting on municipal performance by March 2020. (SO 3.2)

Number of municipalities with functional ward committees

Number of municipalities supported to institutionalise community complaints management processes

Annual Report on municipal performance progress based on the monthly B2B questionnaire developed

Sub-outcome 3: Democratic, well-governed and effective municipal institutions capable of carrying out their developmental mandate according to the Constitution.


Strengthen the functionality of municipalities through the implementation of administrative and institutional systems by March 2020 (SO 4.1)

Number of reports on the appointment of senior managers concluded in line with the MSA regulations.

Number of reports on corrective action taken to enforce compliance by municipalities with the prescribed competency requirements


MTSF Outcome 9:

Sub-outcomes

Related Strategic Outcome-Oriented

Goal (s)

Related Strategic Objective (s)

Related Key Performance indicators

Sub-outcome 4: Sound financial management


Implement initiatives to improve financial sustainability and revenue management in local government by March 2020. (SO4.2)

A municipal-specific revenue plan implemented in selected municipalities.

Number of municipalities assessed in terms of compliance with the rating aspects of the MPRA

Sub-outcome 5: Local public employment programmes expanded through the Community Work Programme.

Local public employment programmes expanded through the Community Work Programme (SG 8)

Provide one million work opportunities through effective and efficient Programme management and strategic partnerships by March 2020. (SO8.1)

Number of work opportunities provided

Number of CWP participants trained

Number of CWP partnerships established

The B2B programme approach adopted by the Department is aligned with the priorities outlined in MTSF: Outcome 9.

The Department also contributes to other MTSF outcomes, specifically Outcome 7 and Outcome 14, as indicated below:

Table 2: DCoG contribution to other Government Outcomes

Other MTSF Outcomes DCoG Role

Outcome 7: Vibrant, equitable, sustainable rural communities contributing towards food security for all

Sub-outcome 1: Improved land administration and spatial planning for integrated development in rural areas

Through facilitating the rollout of the IUDF Implementation Plan

Outcome 7: Sub-outcome 3: Improved food security The Community Work Programme administered by DCoG contributes towards this sub-outcome through the support to agriculture cooperatives in the creation of food gardens

Outcome 14: Nation building and social cohesion. All municipalities have recorded processes that demonstrate inclusion of the poor in budgeting processes and a direct link to MTSF: Outcome 9, sub-outcome 3, outlined above

Through the implementation of the Indigent Policy, we ensure that municipal plans focus on poor and vulnerable groups, as indicate in MTSF: Outcome 9, sub-outcome 1, above

The Ward Committee System, Ward Councillors and Ward Committees report at ward meetings about broad budget plans and consult residents about programmes and projects that will affect them

Outcome 14: Sub-outcome 3: Greening of public spaces and Cleaning of Cities

Through the CWP partnerships, some projects focus on the greening of public spaces and cleaning of cities


6. Legislative and other Mandates

6.1. Constitutional Mandate

The mandate of the Department of Cooperative Governance (DCoG) is derived primarily from Chapters 3, 5, 6, 7 and 9 of the Constitution of the Republic of South Africa, 1996, hereinafter referred to as the Constitution.

Chapter 3 - Deals with cooperative government and intergovernmental relations. The Department observes and adheres to the principles and conduct set out in this chapter.

Chapter 5 - Deals with national intervention in provincial administration when a province cannot or does not fulfil an executive obligation in terms of the Constitution or legislation.

Chapter 6 - Deals with provincial intervention in local government, specifically when municipalities are unable to fulfil their executive obligations or when a municipality, due to a financial crisis, breaches the imperative to provide basic services to meet its financial obligations.

Chapter 7 - Deals with, inter alia, municipalities in cooperative governance. The Department is legislated to support and strengthen the capacity of municipalities to manage their own affairs, exercise their powers and perform their functions.

Chapter 9 - Deals with institutions whose role involves strengthening the constitutional democracy of the country. The DCoG has to conform to the rules set down by institutions such as the Auditor-General and Public Protector to comply with the legislative frameworks in this chapter.

6.2. Legislative Mandate

As a national department, our function is to develop national policies and legislation for local government and, inter alia, monitor the implementation of the following:

Table 3: Legislative mandates of the Department

Name of Legislation Mandate

Municipal Property Rates Act, 2004 (Act No. 6 of 2004)

• Regulate the power of a municipality to impose property rates

• Exclude certain properties from rating in the national interest

• Enable municipalities to implement a transparent and fair system of exemptions, reductions and rebates through their rating policies

• Enable fair and equitable valuation methods of properties

• Enable an objection and appeal process

Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)

• Secure sound and sustainable management of the financial affairs of municipalities and other institutions in local government

• Establish treasury norms and standards for local government

• Provide for matters connected therewith

Disaster Management Act, 2002 (Act No. 57 of 2002)

• Develop an integrated and coordinated disaster management policy with a focus on disaster prevention/risk reduction, severity mitigation, emergency preparedness, rapid and effective response and post-disaster recovery

• Establish national, provincial and municipal disaster management centres

• Source disaster management volunteers

• Provide for matters incidental thereto



Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000)

• Provide municipalities with the core principles, mechanisms and processes necessary to move progressively towards the social and economic upliftment of local communities

• Ensure universal access to essential affordable services, affordable to all

• Define the legal nature of a municipality as that of including the local community within the municipal area to work in partnership with the municipality’s political and administrative structures

• Define the manner in which municipal powers and functions are exercised and performed

• Enable community participation

• Establish a simple and enabling framework for the core planning, performance management, resource mobilisation and organisational change processes that underpin the notion of developmental local government

• Provide a framework for local public administration and human resource development

• Empower the poor and ensure that municipalities establish service tariffs and credit control policies that take their needs into account in a framework that provides services, service delivery agreements and municipal service districts

• Enable credit control and debt collection

• Establish a framework that supports, monitors and sets standards for other spheres of government to progressively build local government into an efficient frontline development agency that integrates all governmental activities involved in socially and economically uplifting communities in harmony with their natural, local environment

Local Government: Municipal Structures Act,1998 (Act No. 117 of 1998)

• Establish municipalities according to the requirements of municipal types and categories

• Establish criteria to determine area-specific municipal categories

• Define types of municipality relevant within each category

• Appropriately divide functions and powers between municipal categories

• Regulate the internal systems, structures and office-bearers of municipalities

• Provide appropriate electoral systems

• Provide for matters in connection therewith

The Intergovernmental Relations Framework Act, 2005 (Act No. 13, of 2005)

The objective of this Act is to facilitate coordination between the three spheres of government to implement policy and legislation. As a Framework Act, it allows flexibility between governmental spheres to:

• Meet the challenges within the conduct and practice of cooperative government

• Provide the basic architecture of intergovernmental structures and processes to guide the settlement of intergovernmental disputes

Local Government: Municipal Demarcation Act, 1998 (Act No. 27 of 1998)

• Provide criteria and procedures for an independent authority to determine municipal boundaries

• Provide for matters connected thereto



Organised Local Government Act, 1997 (Act No. 52 of 1997)

• Recognise national and provincial organisations representing the different categories of municipalities

• Determine procedures for local government to designate representatives to participate in the National Council of Provinces

• Determine procedures for local government to consult national and provincial government

• Determine procedures for local government to nominate persons to the Financial and Fiscal Commission


Fire Brigade Services Act, 1987 (Act No. 99 of 1987)

• Enable the establishment, maintenance, employment, coordination and standardisation of Fire Brigade Services


Remuneration of Public Bearer’s Act, 1998 (Act No. 20 of 1998)

• Provide a framework that determine salaries and allowances of the President, National Assembly members, permanent delegates to the National Council of Provinces, Deputy President, ministers, deputy ministers, traditional leaders and members of the provincial Houses of Traditional Leaders and Council of Traditional Leaders

• Provide a framework that determines the upper limit of salaries and allowances of Premiers, Executive Council members and members of provincial legislatures and municipal councils

• Provide a framework that determines the pension and medical aid benefits of office bearers

• Enable the repeal of certain laws


Local Government: Cross-Boundary Municipal Act, 2000 (Act No. 29 of 2000)

• Give effect to Section 155(6A) of the Constitution by authorising the provincial executives affected to establish cross-boundary municipalities

• Enable the re-determination of the boundaries of such municipalities under certain circumstances


7. Updated Situational Analysis

7.1. External environment

The Department of Cooperative Governance, in fulfilling its mandate as the custodian of the local government sphere, has been facilitating and coordinating a process of transformation and development within the municipal space since the municipal system was established in 2000 in terms of Chapter 7 of the Constitution, and through the Local Government: Municipal Systems and Structure Acts.

Post 2016 Local Government Elections

The outcome of the 2016 local government elections presented a “new era of coalitions” in the history of local government elections in South Africa. Though the process of forming coalitions is engaged in the spirit of democracy, it is vital that the Department monitors the situation as this may bring with it a number of implications that has a direct effect on service delivery due to political ideologies that may lead to conflict between parties in a coalition government. The local government elections have produced 27 municipalities without an outright majority. This list


includes some of the largest municipalities in the country, such as Johannesburg, Tshwane, Ekurhuleni, Nelson Mandela Bay and Rustenburg. There are also some of the smaller municipalities such as Modimolle, Laingsburg, Mtubatuba and Thabazimbi where no party won outright. As is already noticed, coalitions of all kinds, but particularly those combining various smaller parties, are prone to inherent instability as a desertion by any one of them results in a vote of no confidence.

To ensure a process of smooth governance in the 2018/19 financial year and beyond, the Department of Cooperative Governance must play a prominent role in the establishment and working of councils, especially the “hung councils.”

Socio-economic challenges

The National Development Plan indicates that the country’s economy needs to grow at a much faster rate, 6% at least, to begin to address its socioeconomic challenges, high unemployment, inequality and poverty. The current growth trajectory, measuring 2-3% over the past 20 years is inadequate and will not deliver inclusive growth to address the challenges. Unfortunately, SA’s economy officially entered a technical recession – with gross domestic product (GDP) contracting by 0.7% in the first quarter of 2017 from a 0.3% contraction in the previous quarter. Underscoring this is that consumer and business confidence fell in the second quarter of 2017, with business confidence falling to the worst level since the 2009 recession, according to a Rand Merchant Bank (RMB)/Bureau for Economic Research survey.

Unemployment has been rising consistently, and income inequality has worsened despite a plethora of policy documents, the most recent being the National Development Plan. Historical evidence clearly show that as long as economic growth remains below 3%, South Africa runs the risk of unemployment persisting. Sadly, South Africa’s unemployment rate rose to 27.7% for the first quarter of 2017, according to Statistics South Africa figures. This state of affairs has a direct impact on the poor and vulnerable who rely on the provision of free basic services and the well-functioning municipalities. DCoG has a major role to play in ensuring that there is uninterrupted provision of services to the South African community.

Radical economic transformation

The main pillars for achieving radical economic transformation through rapid and inclusive growth in the 2014-2019 Medium-Term include the following:

• Productive investment crowded in through the infrastructure built programme

• Competitiveness enhancement in productive sectors of the economy

• Addressing spatial imbalances in economic opportunities

• Elimination of unnecessary regulatory burdens

• Workers’ education and skills development to meet economic needs

• A macroeconomic and financial framework to support employment-creating growth

• Workplace conflict reduction and improved cooperation between government, organised business and organised labour

• Expanded opportunities for historically excluded and vulnerable groups, small businesses and cooperatives

• Public employment schemes to provide relief for the unemployed and build community solidarity.

LED is intended to maximise the economic potential of municipal localities and enhance the resilience of macro-economic growth through increased local economic growth, employment creation and development initiatives within the context of sustainable development.


It is found however, that municipalities experience challenges in defining their role in local economic development which has resulted in the lack of clear LED policy direction at municipal level, worsened by a chronic shortage of skills, understaffing, political administration dichotomies, poor planning, inadequate support to small, medium and micro enterprises (SMMEs) or informal business, failure to understand LED processes, lack of project management and poor community involvement in planning and implementation.

The following principles could guide Local Economic Development going forward:

• Collaborative Partnerships

• Integrated Place development

• Pro-poor development

• Youth and Women development

• Sustainable development

• Leadership and governance

• State-led, private sector driven, community-based development.

Implementing the IUDF

South Africa is experiencing continuing urbanisation. The urban centres continue to dominate the country’s economy. Four city-regions dominate the economy, accounting for more than half the national gross value added (GVA). When other cities and large towns are included, the share rises to 81.4% of the country’s GVA, up from 79.4% in 19961, whereas the GVA (and population) of other urban centres are growing at below South Africa’s average growth rates. Nationally, a growing alignment is appearing between economic opportunity and population concentration, and thus of improved access to services

The government’s Integrated Urban Development Framework makes a cogent argument for paying attention to cities. It offers a vision of livable, safe, resource efficient cities in the future, and it includes a package of strategies and actions for urban planning, transport, infrastructure, land development, active communities, urban governance and city finances.

South Africa will need to adopt a much more progressive migration policy in relation to skilled as well as unskilled migrants, and should better plan for rapid urbanisation.

A key feature of a developmental state, like South Africa, lies on the level at which its citizens have access to basic services such as housing, water, lights and sanitation. The latest General Household Survey released by the Statistics South Africa in 2016 show that of the 56 million people living in the country, over 85% are connected to the national electricity supply, about 90% have access to clean water, over 80% have access to sanitation services, while about 64% have access to refuse removal.

Notwithstanding the fact that high percentages of our citizens have access to electricity, water, sanitation and refuse removal, there is clear evidence that the system of local government is indeed in distress, and that this state of affairs has become deeply-rooted within our system of governance. With regard to the levels of service delivery, systemic failures ranging from gaps in critical technical and management skills, neglect of operation and maintenance, poor revenue management and under-spending on capital budgets at municipal government level have been identified as major challenges in the local government sector.

Inadequate care of infrastructure can undermine service delivery and increase backlogs. It is estimated that about 35% of water supplied is non-revenue water (or volume of water which is lost and for which no income is received by the water services provider). Poor maintenance, inaccurate or incomplete billing and water theft are seen as the main

1 NPC (National Planning Commission). 2012. National Development Plan 2030: Our future – make it work. Pretoria.


causes of water losses which lead to non-revenue water.

Therefore, underpinning the Department of Cooperative Governance’s performance plan are some key questions, such as how deep-rooted is the state of distress in our local municipalities, what are the causes, and through what measures do we address these fault-lines in our governance arrangements.

Disaster Coordination and Response

Sustainability is a key aspect of development, as this ensures that development today does not hinder future development. With regard to planning for disasters such as the recent drought, some of the challenges that have been identified include:

• The lack of integrated and well-coordinated planning

• The lack of institutional capacity and capability i.e. non-functional disaster management centres without relevant personnel and focal points within sectors

• Failure to properly expend and account for funds

• Lack of municipal risk profiles to know our areas and their exposure and vulnerability to hazards.

Going forward, continued coordination of drought interventions in collaboration with relevant role players through the national Joint Drought Coordination Committee will remain key to consolidate intervention measures and ensure speedy drought response within the affected communities.

The Municipal Demarcation Board (MDB), Department of Planning, Monitoring and Evaluation (DPME) and the Auditor-General South Africa (AGSA) have raised concerns in their recent local government reports regarding the performance of national and provincial departments with regard to their supervisory and regulatory responsibilities over municipalities. Gaps that have been identified include: lack of regulatory norms and standards, processes for monitoring and supervision, the collection of regular performance information and either recognising good performance or supporting and intervening with regard to inadequate performance.

Despite some successes, there are still areas that require attention to improve the functionality of the intergovernmental system and clarify the roles and functions of the different spheres of government. South Africa’s Intergovernmental Relations (IGR) System is still fraught with institutional and design issues hampering the effectiveness of the three sphere system. There is for example a proliferation of IGR coordination structures and a plethora of plans that can create a state of paralysis, in spite of all the efforts aimed at coordination and collaboration within and across spheres of government.

Some of the challenges are related to how the system has evolved over time and others are related to the economic constraints under which the system operates. Importantly, many of the issues relate to the shortcomings in the ‘human agency’ to drive coordination, lack of senior level capacity and skills in IGR units and secretariats, and uneven leadership and reporting through the IGR system. These pressures and weaknesses have hampered the effective discharge of core mandates and must be addressed. The lack of a centrally co-ordinated capability for municipal information gathering and analysing, support and monitoring and evaluation has been identified as undermining the capacity of the state to support and build strong municipalities.

During the 2016/17 financial year, the Department undertook a study on “An Improved Governance Framework for Powers and Functions.” The study was informed by fieldwork and interviews in approximately 25 urban municipalities, on the local levels of challenges experienced, which resulted in an emerging consensus on key interventions/reforms required for improved urban governance. The recommendations of the study will inform aspects of the IUDF and Back-to-Basics implementation in the next MTEF period leading up to 2019. These include possible legislative reform, sectoral grant consolidation to improve coordination of infrastructure investments, a revised intergovernmental planning framework to better manage integrated spatial planning for coordinated investments in a municipal space,


and more focus on how decentralisation should enable local government to meet a general mandate to provide for the welfare and development needs of their constituencies. In this regard, the Ministry has proposed a CoGTA wide Bosberaad to be held early in 2018 as part of having a broad discussion on the Constitutional and Legislative Mandate.

Audit outcomes

The 2014/15 general report on the audit opinions by the AGSA highlighted the significant progress made since 2010/11 in improving the audit outcomes in local government, but the rate of improvement was very marginal and limited in 2015/16.

The audit outcomes of municipalities in the Eastern Cape, Limpopo and Mpumalanga showed momentum in the right direction, with the Eastern Cape showing the greatest improvement. The improvements in the Eastern Cape can be attributed to: improved record keeping; the support provided by the provincial treasury and the provincial department responsible for cooperative governance (provincial CoGTA); the leadership attending to audit recommendations; the implementation of the minimum competency levels; and the use of consultants. The outcomes in three of the main areas that AGSA audited are as follows:

• The audit opinions on the financial statements only slightly improved from 60% to 62% unqualified opinions, while disclaimed and adverse opinions decreased from 13% to 10%. The revised Medium-Term Strategic Framework (MTSF) targets of 65% unqualified opinions, 20% qualified opinions and a maximum of 15% disclaimed or adverse opinions by 2018/19 can therefore be achieved.

• The audit area that showed the greatest improvement was the quality of performance reports, with the number of municipalities with no material findings in this regard increasing from 38% to 47%. Only 31% of municipalities would have had this positive outcome had the AGSA not identified the material misstatements and allowed them to make corrections.

• There was a slight regression in the compliance with key legislation, with the number of municipalities with no material findings decreasing from 20% to 18%. The lapse in oversight and controls in the area of compliance was evident in a number of areas, including Supply Chain Management (SCM) and consequence management, leading to increased irregular expenditure. Irregular expenditure had increased by just over 50% since the previous year to R16.81 billion – the highest since the AGSA started tracking the values.

• The main root causes of municipalities’ continuing inability to improve internal controls e.g. management (accounting officers and senior management), the political leadership (mayors and councils) and oversight structures (MPACs and portfolio committees) did not respond with the required urgency to the AGSA’s messages about addressing risks and improving internal controls. The Department will, as part of the strategic objectives of Programme 3 (implement initiatives to improve financial sustainability and financial viability in local government and strengthening the functionality of municipalities through implementing administrative functions), linked to the Back-to-Basics programme, address the AGSA’s urging of local government leadership. The focus will be on municipalities that did not achieve the desired audit results, to address the root causes of the aforementioned weaknesses in financial and performance management.

The B2B programme was launched towards the end of the 3rd term of Local Government, and only the 1st cycle of B2B’s implementation could be completed. Although a marked improvement in the five performance pillars across categories can be shown, the performances are uneven. Likewise, the capacity and performances of provincial CoGTAs is uneven. The 3rd Presidential Local Government Summit held in 2017, outlined a municipal developmental trajectory that is aligned to the NDP 2030 vision:

• Confirming the focus of Back-to-Basics priorities

• Articulating a need for an intergovernmental paradigm shift in planning within and across spheres

• Encouraging forward planning and sticking to the plan (remove short-termism in planning)


• Improved alignment of spatial plans and budgets based on medium- and long-term developmental plans at municipal level

• Mobilising Intergovernmental efforts towards alignment of spatial plans of National and Provincial Spheres with Integrated Development Plans (IDP’s) of municipalities

• Implementing of the IUDF (spatial transformation of spaces).

7.2. Internal environment

With the current Medium-Term Strategic Framework (MTSF) coming to an end, the Department is in a process of assessing the progress made in achieving the current strategy and finding mechanisms to maximise the limited resources for the coming financial year in addressing critical issues that need to be addressed in the upcoming 2018/19 financial year.

The Department has undergone an “as is” analysis of its current business processes by undertaking an Enterprise Architecture (EA) review. This will be beneficial in ensuring that the organisation identifies and addresses gaps in its business operations, and gears itself up to support the five-year strategy of government.

Over the next MTEF, the operations of the Department will be enhanced through various administration support mechanisms that will seek to improve governance processes and systems. These will be geared towards capacitating the Department to realise its Mandate and are the following:

• Providing support to the Community Work Programme through the Management Information System (MIS) system, integration of Information, Communication and Technology (ICT) services and automation of contract management

• Providing strategic government communications and media engagement support to executive management and political principals

• Enhancing knowledge sharing on international relations and improved monitoring of international Memoranda of Understanding (MoUs)

• Addressing recurring audit findings and findings impacting on the audit report of the AGSA and Internal Audit

• Empowering staff on SCM and financial legislation and delegations to curb irregular and unauthorised expenditure

• Fast tracking the filling of critical posts, enhance management of staff in line with the Departmental performance management policy and institutionalising the MTEF aligned skills audit

• Provide support through improved risk management processes at the planning stage and throughout project lifecycle

• Providing consulting and proactive assurance through the Internal Audit function.

Internally, the Department is organised into six budget programmes to execute its mandate and support the achievement of the strategic outcome-orientated goals. Additionally, the Department implements key policy priorities such as the Back-to-Basics programme and the Integrated Urban Development Framework. The Department executes its legislative and policy mandates through the following budget programme structure:

Programme 1: Administration

Purpose: Provide strategic leadership, management and support services to the Department. The programme includes the Office of the Director-General (DG) and Financial and Corporate Management Services.

Programme 2: Regional and Urban Development and Legislative Support


Purpose: Provide policy analyses and development to transform local government and improve corporative governance.

Programme 3: Institutional Development

Purpose: Build institutional resilience in the local government system by supporting system development, governance, capacity building and revenue management.

Programme 4: National Disaster Management Centre

Purpose: Promote an integrated and coordinated system of disaster prevention, mitigation and risk management.

Programme 5: Local Government Support and Interventions Management

Purpose: Conduct performance monitoring, support and interventions in municipalities and provincial CoGTA to drive B2B activities.

Programme 6: Community Work Programme

Purpose: Create income security and work experience for participants in areas and promote social and economic inclusion by targeting areas of high unemployment.

• In addition to the internal budget programme structure, the Department has four public institutions that report to the Minister and support the implementation of policy priorities. These are the: South African Local Government Association (SALGA)

• South African Cities Network (SACN)

• Municipal Demarcation Board (MDB)

• Municipal Infrastructure Support Agent (MISA).

7.3. Description of the strategic planning process

This 2018/19 Annual Performance Plan of the Department of Cooperative Governance was developed through the guidance of the Top Management of the Department, in consultation with members of the Senior Management Service representing the various Branches and project managers that will be responsible for the implementation of the 2018/19 APP of the Department.

The Department submitted the first and second drafts of the 2018/19 APP to the Department of Planning, Monitoring and Evaluation on 31 August 2018 and 30 November 2018 respectively. In the development of these drafts, the 2018/19 APP of the Department was consulted with all Branches through focused engagements and a Departmental Strategic Planning Meeting with all members of the Senior Management Service. The Department adopted the following six strategic priorities that were consulted and agreed with the National Treasury during the 2017 MTEF period, to inform the budget priorities of the Department over the next MTEF, leading up to the end of the current MTSF period:

• Priority 1: Implement initiatives to improve financial stability and revenue management of municipalities.

• Priority 2: 2016 Local Government post-election Programme.

• Priority 3: Implement the Integrated Urban Development Framework.

• Priority 4: Eradication of municipal infrastructure backlogs.

• Priority 5: Implement an integrated and coordinated system for the management of all common disasters, such as drought, floods and fires across all spheres of government.

• Priority 6: Implement the Community Work Programme.


An exercise was also undertaken to align the first draft 2018 Estimates of National Expenditure (ENE) with the second draft 2018/19 APP to ensure that the performance information aspect of the ENE is aligned to that of the second draft APP. Externally, the Department engaged on a process to finalise the customisation of the CoGTA sector performance indicators that support the implementation of the 2014-2019 MTSF (Outcome 9) in collaboration with provincial CoGTA Departments. Provinces were also supported through their strategic planning processes by the national CoGTA to synergise sector planning within the national department and provincial counterparts.

The Department developed and submitted the third draft 2018/19 APP, which was submitted to the AGSA for interim audit on 31 January 2018. The outcome/findings of the AGSA review together with the DPME analysis feedback on the second draft APP were considered and incorporated into the final draft 2018/19 APP. The Department convened a final Strategic Planning Meeting on 15 February 2018, to finalise the 2018/19 APP prior to approval by the Minister of Cooperative Governance and Traditional Affairs, whose approval was granted in March 2018 for tabling in Parliament.


Ove

rvie

w o

f the

Dep

artm

enta

l Bud

get

and

MT

EF E

stim

ates

Tabl

e 4:

Ove

rvie

w o

f the

Dep

artm

enta

l bud

get

and

MT

EF e

stim

ates

Coo

pera

tive

Gov

erna

nce

2

014/

15

201

5/16

2

016/

17

201

7/18

2

018/

19

201

9/20

2

020/

21

Ran

d th

ousa

ndA

udit

ed o

utco

me

Bud

get

Med

ium

-ter

m e

stim

ates

Adm

inis

trat

ion

236

429

236

494

267

266

244

296

258

556

275

708

293

969

Reg

iona

l and

Urb

an D

evel

opm

ent

and

Legi

slat

ive

Supp

ort

80

338

92

995

389

308

2

48 5

5310

3 47

5 10

9 70

4 11

6 25

9

Inst

itutio

nal D

evel

opm

ent

42

040

196

49

818

592

50

931

034

57

373

121

63

111

536

69

376

402

76

110

838

Nat

iona

l Dis

aste

r M

anag

emen

t C

entr

e 3

85 9

05

258

158

2

95 2

82

548

051

5

92 2

45

570

278

6

02 6

27

Loca

l Gov

ernm

ent

Supp

ort

and

Inte

rven

tion

Man

agem

ent

15

084

951

15

317

068

15

598

244

16

409

803

15

716

173

16

181

048

17

072

302

Com

mun

ity W

ork

Prog

ram

me

1 5

58 7

29

2 3

74 2

30

2 3

71 0

96

3 6

40 0

66 3

869

903

4

084

119

4

311

600

TO

TAL

59

386

548

68

097

537

69

852

230

78

463

890

83

651

888

90

597

259

98 5

07 5

95

Cur

rent

pay

men

ts 1

975

327

2

759

622

2

815

713

4

275

554

3 5

38 1

34

3 5

95 5

23

3 6

62 0

03

Com

pens

atio

n of

em

ploy

ees

234

442

2

58 3

35

272

404

3

07 6

22

339

475

3

65 3

54

392

754

Goo

ds a

nd s

ervi

ces

1 7

40 8

85

2 5

01 2

87

2 5

43 3

09

3 9

67 9

32

3 1

92 8

78 3

224

035

3 2

69 2

49

Tran

sfer

s an

d su

bsid

ies

57

393

046

65

290

923

67

027

032

74

180

734

80

111

778

86

999

693

94

836

965

Paym

ents

for

capi

tal a

sset

s 1

7 91

2 4

6 07

8 9

312

7

502

7 7

57

8 1

77

8 6

27

Paym

ents

for

finan

cial

ass

ets

263

9

14

173

10

0 -

-

-

Tota

l eco

nom

ic c

lass

ifica

tion

59

386

548

68

097

537

69

852

230

78

463

890

83

651

888

90

597

259

98 5

07 5

95

PART B: Programme andSub-Programme Performance Plans


PAR

T B

: Pro

gram

me

and

Sub-

Pro

gram

me

Perf

orm

ance

Pla

ns

Prog

ram

me

1: A

dmin

istr

atio

n

Purp

ose:

Pro

vide

str

ateg

ic le

ader

ship

, man

agem

ent

and

supp

ort

serv

ices

to

the

Dep

artm

ent.

Stra

tegi

c G

oal 1

: Effe

ctiv

e an

d ef

ficie

nt in

tern

al c

orpo

rate

gov

erna

nce

proc

esse

s an

d sy

stem

s

Stra

tegi

c O

bjec

tive

1.1

: Im

prov

e D

CoG

gov

erna

nce

proc

esse

s an

d sy

stem

s by

Mar

ch 2

020

Tabl

e 5:

Pro

gram

me

1 St

rate

gic

obje

ctiv

e an

nual

tar

gets

for

2018

/19-

2020

/21

Obj

ecti

veSt

rate

gic

targ

et

Aud

ited

/Act

ual P

erfo

rman

ceEs

tim

ated

Pe

rfor

man

ceM

ediu

m-T

erm

Tar

gets

2014

/15

2015

/16

2016

/17

2017

/18

2018

/19

2019

/20

2020

/21

SO1.

1: Im

prov

e D

CoG

go

vern

ance

pr

oces

ses

and

syst

ems

by

Mar

ch 2

020

Fina

l MPA

T s

core

m

aint

aine

d at

3

in M

arch

202

1

--

New

indi

cato

r Fi

nal a

vera

ge

MPA

T s

core

im

prov

ed fr

om

2.7

in 2

015

to 3

in

201

8

Fina

l ave

rage

M

PAT

sco

re

mai

ntai

ned

at 3

in

201

9

Fina

l ave

rage

M

PAT

sco

re

mai

ntai

ned

at 3

in

202

0

Fina

l ave

rage

M

PAT

sco

re

mai

ntai

ned

at 3

in

202

1

Tabl

e 5.

1: P

rogr

amm

e 1

Prog

ram

me

perf

orm

ance

indi

cato

rs a

nd a

nnua

l tar

gets

for

2018

/19

finan

cial

yea

r

Out

put

Perf

orm

ance

In

dica

tor

Aud

ited

Per

form

ance

Es

tim

ated

Pe

rfor

man

ceM

TEF

Tar

gets

2014

/15

2015

/16

2016

/17

2017

/18

2018

/19

2019

/20

2020

/21

Stra

tegi

c O

bjec

tive

1.1

: Im

prov

e D

CoG

gov

erna

nce

proc

esse

s an

d sy

stem

s by

Mar

ch 2

020

Dep

artm

enta

l M

anag

emen

t Pe

rfor

man

ce

Ass

essm

ent T

ool

(MPA

T)

scor

e

Impr

ovem

ent

in

Dep

artm

enta

l M

PAT

ave

rage

sc

ore

--

New

indi

cato

rFi

nal a

vera

ge

MPA

T s

core

im

prov

ed fr

om

2.7

in 2

015

to 3

in

201

8

Fina

l ave

rage

M

PAT

sco

re

mai

ntai

ned

at

3 by

31

Mar

ch

2019

Fina

l ave

rage

M

PAT

sco

re

mai

ntai

ned

at

3 by

31

Mar

ch

2020

Fina

l ave

rage

M

PAT

sco

re

mai

ntai

ned

at

3 by

31

Mar

ch

2021


Tabl

e 5.

2: P

rogr

amm

e 1

Qua

rter

ly t

arge

ts 2

018/

19

Perf

orm

ance

In

dica

tor

Rep

orti

ng

Freq

uenc

y A

nnua

l Tar

get

2018

/19

Qua

rter

ly T

arge

ts

Qua

rter

1Q

uart

er 2

Qua

rter

3Q

uart

er 4

Impr

ovem

ent

in

Dep

artm

enta

l M

PAT

ave

rage

sc

ore

Qua

rter

lyFi

nal a

vera

ge M

PAT

sc

ore

mai

ntai

ned

at

3 in

201

9

No

targ

et

Dep

artm

enta

l MPA

T K

PS

self-

asse

ssm

ent

scor

es

for

2017

sub

mitt

ed t

o D

PME

by 3

0 Se

ptem

ber

2018

Inte

grat

ed M

anag

emen

t To

ol t

o ad

dres

s M

PAT,

A

GSA

and

Inte

rnal

A

udit

findi

ngs

deve

lope

d an

d ap

prov

ed b

y To

p M

anag

emen

t C

omm

ittee

by

30

Nov

embe

r 20

18

(Bas

ed o

n 20

17 fi

ndin

gs)

Fina

l 201

6 M

PAT

ave

rage

sc

ores

impr

oved

and

m

aint

aine

d at

3 fr

om

2017

/18

finan

cial

yea

r by

31

Mar

ch 2

019

Tabl

e 5.

3: S

trat

egic

Ris

ks fo

r 20

18/1

8 fin

anci

al y

ear:

Adm

inis

trat

ion

Stra

tegi

c ob

ject

ive

Rel

ated

ris

k M

itig

atin

g m

easu

res

Impr

ove

DC

oG g

over

nanc

e pr

oces

ses

and

syst

ems

by M

arch

202

0N

on-c

ompl

ianc

e w

ith p

olic

ies,

proc

edur

es, d

eleg

atio

ns o

f aut

hori

ty

Inef

fect

ive

inte

rnal

con

trol

env

iron

men

t

Reg

ular

ove

rsig

ht b

y th

e In

tern

al C

ontr

ol C

omm

ittee

and

the

DG

on

the

impl

emen

tatio

n of

pol

icie

s, pr

oced

ures

and

impl

emen

tatio

n of

con

sequ

ence

m

anag

emen

t w

here

the

re a

re t

rans

gres

sion

s/no

n-co

mpl

ianc

es

Dev

elop

and

impl

emen

t th

e M

PAT

impr

ovem

ent

plan

Rev

iew

and

str

engt

hen

man

agem

ent

actio

ns id

entifi

ed t

o ad

dres

s ro

ot c

ause

s of

au

dit

findi

ngs

Impr

ove

the

over

all M

PAT

sco

re t

o 3

Con

duct

aw

aren

ess/

trai

ning

ses

sion

s on

pol

icie

s an

d de

lega

tions

of a

utho

rity


Tabl

e 5.

4: A

dmin

istr

atio

n -

Rec

onci

ling

Perf

orm

ance

Tar

gets

wit

h th

e B

udge

t an

d M

TEF

Adm

inis

trat

ion

201

4/15

2

015/

16

201

6/17

2

017/

18

201

8/19

2

019/

20

202

0/21

Aud

ited

out

com

eB

udge

tM

ediu

m-t

erm

est

imat

es

Min

istr

y 3

2 91

3 2

7 75

2 3

2 08

6 2

6 71

0 2

9 44

0 3

1 50

5 3

3 68

5

Man

agem

ent

16

532

20

062

14

399

18

270

18

447

19

775

21

186

Cor

pora

te S

ervi

ces

109

801

1

11 2

42

139

846

1

04 8

84

113

456

1

21 0

95

129

334

Fin

anci

al S

ervi

ces

25

276

29

983

27

159

36

374

40

569

43

347

46

294

Inte

rnal

Aud

it an

d R

isk

Man

agem

ent

8 6

00

11

857

7 4

35

16

477

13

622

14

555

15

540

Offi

ce A

ccom

mod

atio

n 4

3 30

7 3

5 59

8 4

6 34

1 4

1 58

1 4

3 02

2 4

5 43

1 4

7 93

0

Tota

l 2

36 4

29

236

494

2

67 2

66

244

296

2

58 5

56

275

708

2

93 9

69

Cur

rent

pay

men

ts 2

24 2

35

225

637

2

60 2

94

238

972

2

53 1

92

270

058

2

88 0

08

Com

pens

atio

n of

em

ploy

ees

110

287

1

09 1

13

121

844

1

25 1

63

141

475

1

52 2

00

163

610

Goo

ds a

nd s

ervi

ces

113

948

1

16 5

24

138

450

1

13 8

09

111

717

1

17 8

58

124

398

Tran

sfer

s an

d su

bsid

ies

999

4

48

185

1

50

106

1

12

118

Paym

ents

for

capi

tal a

sset

s 1

0 93

2 9

495

6

614

5

074

5

258

5

538

5

843

Paym

ents

for

finan

cial

ass

ets

263

9

14

173

1

00

-

-

-

Tota

l eco

nom

ic c

lass

ifica

tion

236

429

2

36 4

94

267

266

2

44 2

96

258

556

2

75 7

08

293

969


Programme 2: Regional and Urban Development and Legislative Support

Purpose: Provide policy analysis and development to transform local government and improve corporate governance.

The Programme’s strategic objectives are linked to the B2B programme.

Strategic Goal 2: Lead and support the creation of prosperous cities and towns by restructuring the space economy

Strategic objective 2.1: Facilitate the restructuring of municipal space economy through integrated development planning and spatial targeting by 31 March 2020

Strategic objective 2.2: Support the creation of an enabling environment for municipalities to achieve inclusive economic development through the implementation of initiatives of the National Framework for LED by March 2020

The Programme is structured into the following five sub-programmes to support the Department in achieving the objectives of its strategic outcome-orientated goals:

Management: Regional, Urban Development and Legislative Support provides strategic leadership to the Programme to comply with and achieve Departmental targets aligned with the B2B approach.

Local Government Legislative Support and Institutional Establishment drafts and amends primary and secondary legislation administered by the Department and provides our stakeholders with legal opinions on the interpretation of legislation and matters that impact our mandate. The sub-programme also provides technical support and advice on the determination and redetermination of municipal boundaries, provincial boundary issues and local government election.

Urban Development Planning facilitates and monitors the implementation of the IUDF policy and local economic development plans. The sub-programme also supports municipalities to implement various tools that facilitate integrated urban development and spatial contracts in key restructuring zones.

Spatial Planning Districts and Regions facilitates the implementation of planning frameworks to promote integrated development across Government and builds Geographic Information System (GIS) capacity in district and local municipalities to enhance evidence-based decision-making. The sub-programme also facilitates sustainable economic activities in the districts and lagging regions.

Intergovernmental Policy and Practice reviews, clarifies and strengthens the policy and institutional environment for the assignment of powers and functions, as well as management of their powers and functions. The sub-programme is also responsible for strengthening collaborative intergovernmental management and practice between sectors, provinces and local government.


Tabl

e 6:

Pro

gram

me

2 St

rate

gic

obje

ctiv

e an

nual

tar

gets

for

2018

/19-

2020

/21

Stra

tegi

c ta

rget

St

rate

gic

targ

et

Aud

ited

/Act

ual P

erfo

rman

ceEs

tim

ated

Pe

rfor

man

ceM

ediu

m-T

erm

Tar

gets

2014

/15

2015

/16

2016

/17

2017

/18

2018

/19

2019

/20

2020

/21

SO 2

.1: F

acili

tate

th

e re

stru

ctur

ing

of m

unic

ipal

sp

ace

econ

omy

thro

ugh

inte

grat

ed

deve

lopm

ent

plan

ning

and

sp

atia

l tar

getin

g by

31

Mar

ch

2020

Supp

ort

prog

ram

mes

im

plem

ente

d in

12

iden

tified

in

term

edia

te

citie

s by

Mar

ch

2021

IUD

F im

plem

enta

tion

plan

fina

lised

Com

preh

ensi

ve

supp

ort

prog

ram

me

for

inte

rmed

iate

ci

ties

final

ised

1 su

ppor

t pr

ogra

mm

e de

velo

ped

in a

ta

rget

ed p

ilot

mun

icip

ality

-

Polo

kwan

e LM

-

to im

prov

e sp

atia

l, ec

onom

ic

plan

ning

and

im

plem

enta

tion

in li

ne w

ith

IUD

F-id

entifi

ed

prio

ritie

s by

31

Mar

ch 2

018

Supp

ort

prog

ram

me

impl

emen

ted

in 4

iden

tified

in

term

edia

te

citie

s by

31

Mar

ch 2

019

Supp

ort

prog

ram

me

impl

emen

ted

in 4

iden

tified

in

term

edia

te

citie

s by

31

Mar

ch

2020

Supp

ort

prog

ram

me

impl

emen

ted

in 4

iden

tified

se

cond

ary

citie

s by

31

Mar

ch 2

020

Supp

ort

prog

ram

me

impl

emen

ted

in 4

iden

tified

in

term

edia

te

citie

s by

31

Mar

ch 2

021


Tabl

e 6.

1: P

rogr

amm

e 2

Prog

ram

me

perf

orm

ance

indi

cato

rs a

nd a

nnua

l tar

gets

for

the

2018

/19

finan

cial

yea

r

Out

put

Perf

orm

ance

In

dica

tor

Aud

ited

/Act

ual P

erfo

rman

ceEs

tim

ated

Pe

rfor

man

ceM

ediu

m-T

erm

Tar

gets

2014

/15

2015

/16

2016

/17

2017

/18

2018

/19

2019

/20

2020

/21

Stra

tegi

c O

bjec

tive

2.1

: Fac

ilita

te t

he r

estr

uctu

ring

of m

unic

ipal

spa

ce e

cono

my

thro

ugh

inte

grat

ed d

evel

opm

ent

plan

ning

and

spa

tial

tar

geti

ng b

y 31

Mar

ch

2020

Spat

ial a

nd

econ

omic

pl

anni

ng

impl

emen

ted

Supp

ort

prog

ram

mes

im

plem

ente

d in

sel

ecte

d in

term

edia

te

citie

s

IUD

F im

plem

enta

tion

plan

fina

lised

Com

preh

ensi

ve

supp

ort

prog

ram

me

for

inte

rmed

iate

ci

ties

final

ised

1 su

ppor

t pr

ogra

mm

e de

velo

ped

in a

ta

rget

ed p

ilot

mun

icip

ality

-

Polo

kwan

e LM

- t

o im

prov

e sp

atia

l, ec

onom

ic p

lann

ing

and

impl

emen

tatio

n in

line

with

IUD

F-id

entifi

ed p

rior

ities

by

31

Mar

ch 2

018

Supp

ort

prog

ram

me

impl

emen

ted

in 4

iden

tified

in

term

edia

te

citie

s by

31

Mar

ch 2

019

Supp

ort

prog

ram

me

impl

emen

ted

in 4

iden

tified

in

term

edia

te

citie

s by

31

Mar

ch 2

020

Supp

ort

prog

ram

me

impl

emen

ted

in 4

iden

tified

in

term

edia

te

citie

s by

31

Mar

ch 2

021

Stra

tegi

c ob

ject

ive

2.2:

Sup

port

the

cre

atio

n of

an

enab

ling

envi

ronm

ent

for

mun

icip

alit

ies

to a

chie

ve in

clus

ive

econ

omic

dev

elop

men

t th

roug

h th

e im

plem

enta

tion

of i

niti

ativ

es o

f the

Nat

iona

l Fra

mew

ork

for

LED

by

Mar

ch 2

020

Reg

iona

l Ec

onom

ic

Dev

elop

men

t Pl

anni

ng

Fram

ewor

k on

reg

iona

l ec

onom

ic

deve

lopm

ent

plan

ning

ado

pted

by

the

Min

iste

r

New

indi

cato

r Fr

amew

ork

on r

egio

nal

econ

omic

de

velo

pmen

t pl

anni

ng

appr

oved

by

the

Min

iste

r by

31

Mar

ch 2

019

Reg

iona

l ec

onom

ic

deve

lopm

ent

plan

s fo

r pi

lot

regi

ons

deve

lope

d by

31

Mar

ch 2

020

Reg

iona

l ec

onom

ic

deve

lopm

ent

plan

s im

plem

ente

d in

se

lect

ed r

egio

ns

by 3

1 M

arch

20

21


Tabl

e 6.

2: P

rogr

amm

e 2

Qua

rter

ly t

arge

ts fo

r 20

18/1

9

Perf

orm

ance

Indi

cato

rR

epor

ting

Fr

eque

ncy

Ann

ual T

arge

t 20

18/1

9Q

uart

erly

Tar

gets

Qua

rter

1Q

uart

er 2

Qua

rter

3Q

uart

er 4

Supp

ort

prog

ram

mes

im

plem

ente

d in

sel

ecte

d in

term

edia

te c

ities

Qua

rter

lySu

ppor

t pr

ogra

mm

e im

plem

ente

d in

4

iden

tified

inte

rmed

iate

ci

ties

by 3

1 M

arch

201

9

Supp

ort

prog

ram

me

impl

emen

ted

in 1

id

entifi

ed in

term

edia

te

city

by

30 Ju

ne 2

018

Supp

ort

prog

ram

me

impl

emen

ted

in 1

id

entifi

ed in

term

edia

te

city

by

30 S

epte

mbe

r 20

18

Supp

ort

prog

ram

me

impl

emen

ted

in 1

id

entifi

ed in

term

edia

te

city

by

31 D

ecem

ber

2018

Supp

ort

prog

ram

me

impl

emen

ted

in 1

id

entifi

ed in

term

edia

te

city

by

31 M

arch

201

9

Fram

ewor

k on

reg

iona

l ec

onom

ic d

evel

opm

ent

adop

ted

by t

he M

inis

ter

Qua

rterly

Fram

ewor

k on

reg

iona

l ec

onom

ic d

evel

opm

ent

adop

ted

by t

he

Min

iste

r by

31

Mar

ch

2019

No

targ

et

Res

earc

h R

epor

t on

re

gion

s an

d re

gion

al

econ

omic

dev

elop

men

t by

30

Sept

embe

r 20

18

Dis

cuss

ion

docu

men

t on

con

sulta

tions

on

fram

ewor

k on

reg

iona

l ec

onom

ic d

evel

opm

ent

plan

ning

dev

elop

ed b

y 31

Dec

embe

r 20

18

Fram

ewor

k on

reg

iona

l ec

onom

ic d

evel

opm

ent

adop

ted

by t

he

Min

iste

r by

31

Mar

ch

2019

Tabl

e 6.

3: S

trat

egic

Ris

ks fo

r 20

18/1

8 fin

anci

al y

ear:

Reg

iona

l and

Urb

an D

evel

opm

ent

and

Legi

slat

ive

Supp

ort

Stra

tegi

c ob

ject

ive

Rel

ated

ris

k M

itig

atin

g m

easu

res

Faci

litat

e th

e re

stru

ctur

ing

of m

unic

ipal

spa

ce e

cono

my

thro

ugh

inte

grat

ed d

evel

opm

ent

plan

ning

and

spa

tial

targ

etin

g by

Mar

ch 2

020

Gov

ernm

ent

infr

astr

uctu

re p

rogr

amm

es im

plem

ente

d in

an

unco

ordi

nate

d m

anne

r th

ereb

y lim

iting

impa

ct

Del

ays

in t

he im

plem

enta

tion

of t

he IU

DF

Dev

elop

, im

plem

ent

and

mon

itor

the

inte

grat

ed

stra

tegy

Esta

blis

h a

Foru

m t

o en

gage

the

diff

eren

t ro

le p

laye

rs

Supp

ort

4 In

term

edia

te C

ities

to

impl

emen

t th

e IU

DF

Soug

ht C

ounc

il re

solu

tions

to

prov

ide

supp

ort

on t

he

iden

tified

Mun

icip

aliti

es


Stra

tegi

c ob

ject

ive

Rel

ated

ris

k M

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