www.salga.org.za
IMFO:
WESTERN CAPE
Role of Organised LG to
meet LG Objectives
5 June 2012
Reuben Baatjies (Gov & IGR)
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www.salga.org.za
OUTLINE
1.
Introduction
2.
Role of SALGA
– Legislation
– SALGA Constitution
– Activities
3.
The Next Phase 2012-17
4.
Key IGR Processes
5.
SALGA in Fiscal IGR Process
6.
Conclusion – meeting the objective of Dev. LG
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www.salga.org.za
1. Introduction
• In order for LG to participate effectively in intergovernmental
relations, it needs to act as a collective, through an organised LG
structure.
• S163 of the Constitution, recognises OLG as the legitimate voice
for LG and affords it representation in key national institutions.
• The section further provides that an Act of Parliament must cater
for the recognition of nat and prov organisations representing
municipalities, and determine procedures by which LG may
consult the nat and prov govt, designate representatives to
participate in the NCOP and nominate persons to the FFC.
• SALGA is not a statutory body, but has official status through the
executive act of recognition.
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Vision of role of OLG
1998 White Paper on LG
• SALGA’s key role is the effective representation of LG in the
legislative and IGR processes of govt, and in executive processes.
• SALGA also has potential to make a strong contribution to the
development of municipalities throughout the country, through, for
example:
– Provision of specialised services to supplement and strengthen the
capacity of municipalities.
– Research and information dissemination.
– Facilitating shared learning between municipalities.
– Human resource development.
– Councillor training.
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2. Role of SALGA
• The IGR Framework Act makes specific provision for OLG’s participation
in both national and provincial IGR structures, enabling SALGA to
influence nat & provincial legislation and to gauge the impact of such
legislation on LG.
• Section 3 of the Municipal Systems Act builds on the role of OLG and
provides that for the purpose of effective co-operative government, OLG
must seek to(a) develop common approaches for LG as a distinct sphere of government;
(b) enhance co-operation, mutual assistance and sharing of resources
among municipalities;
(c) find solutions for problems relating to LG generally; and
(d) facilitate compliance with the principles of co-operative government and
intergovernmental relations.
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Role of SALGA
Outlined in SALGA Constitution as including:
– Represent, promote and protect interests of LG;
– Represent municipalities in key IGR structures at both provincial and
national level;
– Position LG at the centre of cooperative governance and
development;
– Deepen democracy and accountability at the local level;
– Optimise the governance system within municipalities;
– Enhance Role and Status of Municipalities; and
– Contribute to transformation of LG to be developmental.
• Thus, the dynamic external context within which SALGA operates,
and its own internal manifestations, has largely shaped the
organisation’s strategic direction.
www.salga.org.za
SALGA MANDATE
SALGA
Mandate
Transform local
government to
enable it to fulfil
its
developmental
mandate.
Lobby,
Advocate &
Represent
Lobby, advocate,
protect and
represent the
interest of local
government at
relevant
structures and
platforms.
Employer
Body
Act as an
employer body
representing all
municipal
members and, by
agreement,
associate
members.
Support &
Advice
Capacity
Building
Build the capacity
of the municipality
as an institution as
well as leadership
and technical
capacity of both
Councillors and
Officials.
Support and
advise our
members on a
range of issues
to assist
effective
execution of
their mandate.
The Voice of Local Government
Strategic
Profiling
Build the profile
and image of
local government
within South
Africa as well as
outside the
country.
The Voice of Local Government
Knowledge &
Information
Sharing
Serve as the
custodian of local
government
intelligence and
the knowledge hub
and centre of local
government
intelligence for the
sector.
www.salga.org.za
Overview of
Activities of SALGA
Undertaking internal
governance activities to
manage and provide
oversight over the activities
of SALGA
Participating in mandatory
inter-governmental
structures and undertaking
legislated responsibilities
Providing services to
members, including
research and advocacy on
key local government issues,
and other direct support to
municipalities
Supporting the
transformation and
restructuring of the local
government sector,
including research and
advocacy on key local
government issues
www.salga.org.za
Challenges in SALGA’s
Role
• SALGA has experienced no. of constraints in fulfilling its role in IGR
in an effective and meaningful manner due to the following:
– Representatives (while deployed to represent the interests of
organised local government) often advance individual municipal
interests;
– Political deployment challenges due to part-time nature of cllrs;
– Policy issues other than high profile ones do not receive political
attention;
– Absence of effective and speedy mandating processes;
– Inadequate feedback to members; and
– General lack of understanding and appreciation by both internal
and external stakeholders of the SALGA mandating process.
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3. The Next Phase
SALGA 2012 – 2017
5-YEAR KPI:
STRATEGIC
OBJECTIVES:
Means through which
SALGA contributes to
the attainment of the
STRATEGIC GOALS: developmental
APEX PRIORITIES:
outcomes of the
Key programmes which, if
Development
Sector
achieved will fundamentally
outcomes
that
SALGA
transform Local Government
seeks to assist the
towards better delivery on all
KPA’s:
sector to achieve
its developmental
Key areas of
mandates
performance towards
the achievement of
the desired outcomes
Result indicator
demonstrating
performance
against 5 year
targets
1-YEAR KPI:
Result indicator
demonstrating
performance
against annual
targets
ANNUAL
TARGETS:
Progressive input
indicators, which
culminate in the
achievement of
the KPIs
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Strategic Goals and Apex
Priorities
2012 - 2017
GOALS
1. Local Government delivers equitable and sustainable services
2. Safe and healthy environment and communities
3. Coherent Planning and Socio-economic development at the local level
4. Effective and responsive Local Govt that is accountable to communities
5. Human Capital development in local government
6. Financial and organisationally capacitated municipalities
7. An effective and efficient administration
APEX PRIORITIES
1. Fiscal and Financial Management
2. Legislative and Policy Review
3. Municipal Capacity Building
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APEX PRIORITIES
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APEX PRIORITY 1

REVIEW OF THE LEGISLATIVE AND POLICY FRAMEWORK
Comprehensive review of legislation and policy framework impacting on municipalities





SALGA to participate more effectively in national and provincial legislatures
Review regulatory environment towards sustainable service provision
Represent the interest of local government in the review of national and provincial policy to improve the
ability of municipalities to manage development planning
Review legislation and policy framework for efficient budgeting, revenue and expenditure management
in local government
Lobby for well defined powers and functions for local government
APEX PRIORITY 2

REVIEW OF LG FISCAL AND FINANCIAL MANAGEMENT FRAMEWORK
Lobby NT, Parliament & other stakeholder for equitable intergovernmental fiscal system
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Recognition of differentiated approach to financial support to municipalities
Facilitated access to Bulk Infrastructure Fund for priority projects
Lobby and support municipalities for a sustainable Pricing and funding of services facilitated
Lobby for a well defined and funded local government role in District Health System
APEX PRIORITY 3

IMPROVED MUNICIPAL CAPACITY
Local government human resources policy and strategy developed and rolled out



Advocate institutional arrangements to render sustainable services facilitated
Adequately capacitated and funded role for local government on migration and related public safety
Systems, structures and partnerships for enhanced
capacity building programmes established
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GOAL 3
5
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GOAL
PLANNING AND
ECONOMIC
DEVELOPMENT
ATMUNICIPAL
A LOCAL
ACCESSIBLE,
AND
SUSTAINABLE
FINANCIALLYEQUITABLE
AND ORGANISATIONALLY
CAPACITATED
SAFE AND
HEALTHY
ENVIRONMENT
AND COMMUNITIES
HUMAN
CAPITAL
DEVELOPMENT
IN LOCAL
GOVERNMENT
LEVEL
SERVICES DELIVERED
BY LOCAL GOVERNMENT
MUNICIPALITIES
The financial challenges faced by municipalities have been well documented, with some
municipalities demonstrating a lack of financial viability. This has an obvious impact on the ability of
municipalities to be fully functional and perform on its mandate. This is firstly due the challenges in
the current fiscal framework and the processes associated with fiscal transfers and the equitable
Problem share model. It is also linked to a broader policy that does not differentiate in the definition or
Statement categorisation of municipalities. The reality is that many municipalities face significant challenges in
financial and organisational viability. This problem has persisted since the establishment of
democratic local government. Hence there is a need to address some the fundamental difficulties
associated with the fiscal framework for local government.
Goal
Definition
Goal
Execution
This goal encapsulates the various policy, strategy and support initiatives that are required to build
and enabling fiscal framework and adequate local government capacity to deal with financial
management. The ultimate focus of this goal is build long term financial viability and broader
sustainability of municipalities.
Efficient and effective municipal finance management and an Equitable intergovernmental
fiscal system through:
• Lobby National Treasury, Parliament and other stakeholders for an equitable intergovernmental
fiscal system
• Review Legislation and policy framework for efficient budgeting, revenue and expenditure
management in LG
• Improved financial governance and audit outcomes
• Recognition of a differentiated financial support for municipalities
www.salga.org.za
4. Key IGR
Processes
• Legislative process
– The OLG Act allows SALGA to designate up to 10 part-time
representatives to the NCOP in Parliament, as non-voting members.
– LG Week 2012 and beyond
• Budgetary process
– LG Budget Forum
– The Financial and Fiscal Commission.
• Executive Governance Processes
– Cabinet Makgotla; President’s Coordinating Council
– MinMECs; Premier’s Intergovernmental Forums, MuniMECs, MinMay
– Technical IGR Forums
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5. SALGA in Fiscal IGR
• In this process of systematically developing its analysis and
advocacy capacity regarding IGFR and municipal fin, SALGA
pursues the objective of a financially capacitated LG sphere to
carry out its constitutional mandate.
• IGFR and mun finance is naturally at the heart of SALGA’s IGR
engagement strategy with national govt.
• Considerable progress has been made in the past years in terms
of SALGA’s capacity to represent LG in crucial negotiation fora,
such as the Budget Forum, where SALGA has made substantial
inputs through submissions of key policy positions.
• Budget Forum = Minister of Fin, MECs for Fin and OLG.
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Fiscal IGR – Budget
Forum
• Since 2006, SALGA has consistently raised issues around; (i) support for
smaller municipalities; (ii) repairs and maintenance; (ii) increases in LG
Equitable Share transfers; and (iv) unfunded mandates.
• In 2009 key insights presented from an analysis of the annual fin
statements of muns which illustrate the varying service delivery contexts /
fin management capacity of different types of muns.
• In 2010, 3 papers were submitted for discussion, i.e. (i) the nature and
extent of outstanding municipal debtors together with recommendations; (ii)
review of the LG fiscal framework; & (iii) progress on application for a local
business tax.
• In 2011 a submission on a number of factors that constrain revenue
management and financial sustainability of municipalities, such as AARTO;
non-alignment of NERSA’s tariff determination process with the municipal
budget process; and the possible impact of the Consumer Protection Act. 16
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Other Fin Support
Initiatives
• SALGA developed a Brochure on the 2011/12 Division of Revenue
Act = easy reference for municipalities to all the allocations they receive
from nat and prov govt and also a view of the allocations that other
municipalities in the province receive.
• SALGA developed an induction programme for all councillors
following the 2011 elections – some 8 600+ cllrs were inducted.
• SALGA has entered into a partnership with the INCA Capacity Building
Fund (ICBF) to roll out a practical capacity building programme on
financial management for municipal cllrs. The programme will be
rolled out during the 2012/13 financial year.
• SALGA and IMFO has entered into a formal MOU - many of these issues
are identified, deliberated on and solutions developed together with
IMFO through its various forums.
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6. Meeting the Obj. of
Developmental LG
• The fundamental principles of developmental LG articulated in the
White Paper remain our collective vision and thus the key
objective for the sector.
• 12 years have passed since democratic LG dispensation in South
Africa was established - while significant successes have been
achieved in expanding democratic participation and the provision
of services to a majority of our people, we are still confronted with
significant obstacles to meeting our constitutional obligations to
citizens.
• We firmly believe that if the 3 Apex Priorities as identified are
addressed, we would have gone some way to meeting the
expectations of our members and the objectives of LG.
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In conclusion
• SALGA thus has a clear strategic role to play in representing the
interests of LG within the system of govt as a whole and within
IGR structures in particular, as well as playing a more direct
hands-on support role to our members.
• The new 2012-17 Strategy and its accompanying structured
engagement and support initiatives gives SALGA an opportunity
to strengthen our relationship with existing stakeholders (such as
IMFO) as well as to build new ones to play our role effectively.
• The next 5 years will be critical to securing the long-term
sustainability and credibility of LG – SALGA must lead in
realising the constitutional imperative of developmental LG.
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