presentation to the portfolio committee on co-operative governance and traditional affairs

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PRESENTATION TO THE PORTFOLIO COMMITTEE ON CO-OPERATIVE

GOVERNANCE AND TRADITIONAL AFFAIRS

BRIEFING ON THE ANNUAL REPORT 2008-2009

Venue: M201, Second Floor, Marks Building, Parliament

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Mission statement

Our mission is to provide professional and technical support to government by:– Developing appropriate policies and legislation to promote

integration in government’s developmental programmes and service delivery;

– Providing strategic interventions, support and partnerships to facilitate policy implementation by the Provinces and Local Government; and

– Creating enabling mechanisms for communities to participate in governance.

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Programme Performance 2008/09

Achievement of outputs

1. Outputs achieved 68%2. Outputs partially achieved 24%3. Outputs not achieved 8%

Total number of outputs 99

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Programme 1: Administration - Corporate Services

1. Communication framework for the 5-year LG Strategic Agenda updated and shared with provinces for implementation.

2. High level overview findings on perceptions of Local Government was attained for the sector.

3. HRM&D service base line established the base on the DPSA benchmarks was published.

4. The 2007/08 Annual Financial Statements were approved by 31 May 2008. An unqualified audit report was achieved for 2007/08 financial year. However, a qualified audit was received for 2008/09.

5. MTEF submission completed and submitted to National Treasury by 31 August 2008

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Programme 1: Monitoring and Evaluation

1. National analytical report on the 5-year LG Strategic Agenda compiled and presented to July 2008 and January 2009 Cabinet Makgotla .

2. The implementation of the national Performance Management Support Strategy has resulted in an increase in the number of municipalities implementing PMS from 153 to 223 by 31 March 2009.

3. Annual report on municipal performance compiled by 31 March 2009.

4. Needs assessment conducted and hands-on support provided to selected 5 District Municipalities in Performance Management systems (PMS).

5. Draft guidelines for municipal reporting and alignment of the MSA and MFMA developed for consultation with National Treasury, Auditor-General and provinces agreed to in September 2008 in order to streamline and standardise municipal reporting.

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Programme 2: Governance, Policy and Research

1. Policy Review on Provincial and Local Government was submitted to Cabinet Lekgotla by 31 January 2009

2. IGR Report submitted to Parliament by 30 June 20083. Communications strategy management plan developed on the

decentralization of organic law in DRC4. The Policy Framework on Khoi-San was approved in March 2009 by

Cabinet 5. The strategic plan 2009-2012, the organizational structure and post

establishment for the new Department of Traditional Leadership was approved by the Minister for Prov and Local Government on the 2nd December 2008.

6. 150 officials trained in LED and Local Business Environment 7. IDP credibility improved from 79% to 79,5% with improvement in the

medium category

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Programme 3: Urban and Rural Development

1. A verification of the strategic LED projects reflected in the IDP’s of the nodes was done for Bridge City project (Ethekwini), Pan Africa Shopping Centre (Alexandra), Monwabisi resort (Cape Town)

2. The Spatial Development Framework Assessment study of the Bushbuckridge Local Municipality was completed

3. Nodal economic profiles launched. Provided planning and implementation support to the Alfred Nzo, Umzinyathi, Ukhahlamba, Kgalagadi, Zululand and Central Karoo rural nodes during the Growth and Development Summits

4. Khulis'mnotho: The District-wide opportunity assessments have been completed.

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Programme 4 : Systems and capacity building

1. National Capacity Building Framework (NCBF) launched nationally 2. NCBF roll-out commenced in all provinces by 31 March 2009 and 3

provinces with municipal capacity building strategies informed by the strategy

3. Financial performance report focusing on Fixed Asset Registers, AFSs, and Internal Audit Committees developed and support provided to 160 municipalities, with 45 receiving on going hands-on support.

4. 165 municipalities were supported to develop Anti-Corruption Strategies / Fraud Prevention Plans

5. Support provided to 16% (47) of Municipalities to implement the HIV and AIDS Framework

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Programme 4 : Systems and capacity building (Cont)

6. Support provided to 15 District municipalities - trained to roll out the Disability Framework

7. National and Provincial Vuna Awards successfully held8. MIG finance to the value of R177m was mobilised for bulk

water/sanitation and drought/flood relief.9. Skills audit conducted in 15 municipalities10. The NDMC has supported the functionality of the 9 Provincial

Disaster Management Centres11. 7 Provinces have established their Disaster Management

Centres 12. 2010 DM Master plan developed for host cities to develop their

contingency plans

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Programme 4: Systems and Capacity Building (Cont)

13. Municipal Property Rates Act Gazetted for implementation on 27 March 2009 together with the related Notice in terms of the Municipal Finance Management Act

14. Nineteen (19) municipalities supported in the areas of rates policy development, by-laws and rating aspects in the budget by March 2009 with DBSA technical assistance

15. Support was provided for the implementation of the Municipal Finance Management Act (MFMA) and roll-out of the Annual Financial Statements project to 120 municipalities.

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16. Knowledge-sharing workshop was organized to facilitate learning from the German experience on all aspects of hosting the World Cup

17. Technical support was provided to the Host Cities with regard to Programme Management and the development of operational plans

18. A communication protocol was adopted to better coordinate and clarify roles and responsibilities across government with regard to the FIFA 2010 World Cup preparations

19. Support was provided to various sector departments and Host Cities guided by the Implementation Plan

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20. A multi-disciplinary team of key government departments was established to trouble shoot and support host cities

21. A resource pool of Service Delivery Facilitators (SDF’s) has been established and is operational in priority municipalities.

22. Key partners that were successfully mobilised include DBSA, Ilima Trust, GTZ, USAID and the Old Mutual Property Group and resulted in a total of 1283 technical experts that have been mobilised to date benefiting 268 municipalities

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Programme 5: Free Basic Services and Infrastructure

1. 75% indigent households received Free Basic Water2. 58% indigent households received Free Basic Electricity3. 39 Municipalities in 5 Provinces assisted with assessment of indigent

policies and development of improvement plans 4. The national framework based on the Funding Model was approved

by Cabinet on 4 February 2009 to be published for public comments5. A study report detailing indigent selection criteria, conditions for FBS

support and options for implementation was completed6. Support interventions undertaken in all municipalities to prepare for MIG implementation in 2009/10 financial year. 29 district /metro CIPs were completed by 31 March 2009.7. Database and profile of Ward Committees in 6 provinces completed

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1. Minister Sicelo Shiceka launched “Operation Clean Audit by 2014” on July 16 2009 to address challenges faced by both municipalities and provincial government departments with regards to audit management, audit findings and queries from the Auditor-General, and to help achieve clean audits by 2014.

2. A comprehensive assessment of the state of local governance and service delivery in our municipalities in close cooperation with both provincial and local government. Task teams have been established in all provinces. The outcomes of the assessments will culminate in the development of a national Local Government Turn Around Strategy (2009-2011).

3. The Minister has embarked on a national communications strategy addressing the spate of “service delivery” protests through various media platforms.

1st Quarter Programme Performance 2009/10

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4. Disruptions by striking municipal workers: the Department has established a multi-stakeholder Ministerial Team with municipal unions and the employer body, SALGA, in an effort to improve relations between the two.

5. The Department further had consultations with the communities of Moutse and Matatiele to assist government in determining which province they would like to belong to. The Moutse referendum was held 28 Sep – 2 Oct 09 and Matatiele 28-30 Oct 09.


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6. The department plays a key role in the preparations for the 2010 FIFA World Cup. The Host City Forum has been restructured to now include Premiers, MECs responsible for the Co-ordination of the 2010 World Cup, and Mayors / Executive Mayors from the nine Host Cities.

7. Also the department has increased the members of the Host City Forum by including: The Chairperson of the National House of Traditional Leaders; Mayors and executive mayors of the Host Cities, and the relevant mayoral or executive committee member that is responsible for the co-ordination of the event; and Premiers and the relevant MEC responsible for the event in the Province.

8. A project-based and activist approach has been adopted to deal with many long-outstanding matters affecting Host Cities, so as to ensure seamless delivery of the FIFA events.

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9. Completed the process of reviewing its strategy and developing its Strategic Plan for the period 2009-2014 in line with its new expanded mandate and the Medium Term Strategic Framework (MTSF) as well as Programme of Action (PoA) projects

10. The performance reporting tool was reviewed to enable the provision of better quality of information from provinces and relevant sector departments.

11. The finalisation of the Performance Management Implementation Support Strategy, identification of 4 selected municipalities Free State (Xhariep DM), Limpopo (Capricorn DM), Northern Cape (Namakwa DM) and North West (Ngaka Modiri Molema DM) to be provided with PMS technical hands-on support

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12. Finalizing the set of performance indicators and in the process of developing a toolkit that could be used by the provinces and municipalities to implement performance management systems.

13. Draft guidelines finalised to assist the process of compilation of Section 46, 47 and 48 reports in collaboration with stakeholders.

14. The Municipal Property Rates Amendment Bill, which provides for the extension of the old order valuation rolls for a further two years, was approved by Cabinet on 13 August 2009.

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STRUCTURE OF THE DPLG BUDGETAllocations per programme 2007/08

(R’000)

2008/09

(R’000)

Programme 1 – Administration 142 900 165 228

Programme 2 – Governance, Policy and Research

39 839 41 672

Programme 3 – Urban and Rural Development

9 827 11 844

Programme 4 – Systems and Capacity Building

92 450 97 588

Programme 5 – Free Basic Services and Infrastructure

37 170 38 316

Programme 6 – Provincial and Local Government Transfers

29 629 760 35 185 631

Programme 7 – Fiscal Transfers 84 805 98 728

TOTAL: 30 036 751 35 639 007

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EXPENDITURE AGAINST SAVING

Year Expenditure

R’000

Saving % Saving

R’000

2002/03 6 579 638 0.35 22 878

2003/04 9 466 231 0.26 24 957

2004/05 13 121 077 0.12 16 304

2005/06 15 957 562 0.02 2 865

2006/07 24 573 267 3.33 817 739

2007/08 30 029 716 0.02 7 035

2008/09 35 348 095 0.82 290 912

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• The 2008/09 budget reflects a total expenditure (excluding local and foreign aid assistance) of R35 348 092 000. This represents 99.9% of the total appropriation.

• In 2001/02 financial year, total transfers to local government amounted to only R4,7 billion. In the 2007/08 financial year, the annual transfers amounted to R30,047 billion and in the 2008/09 financial year, to R34,2 billion.

• Transfers to local government are expected to increase to approximately R41 billion by the 2009/10 financial year.

FINANCIAL HIGHLIGHTS

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Thank You

presentation to the portfolio committee on co-operative governance and traditional affairs

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