Presentation to Select Committee on Upliftment of
section 139 1(b) of the constitution in Ngaka Modiri
Molema District Municipality, North West Province
Presenter: Hon. MEC P Sebegoe
Date : 09 February 2011
Venue : Parliament Committee Room - Cape Town
Presentation outline
1. Purpose
2. Background
3. Terms of Reference
4. Achievements
5. Challenges
6. Section 154(1) intervention
7. Recommendations
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Purpose
The purpose of this report is to inform select committe on
Cooperative Governance and Traditional Affairs that
section 139(1)(b) has been uplifted by National and Provincial
Government and section 154(1) of the Constitution of the
Republic of South Africa, 1996; No. 108 of1996 is being
implemented.
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Background
• A section 139 (b) notice was served on the District Municipality
on the 1 July 2009 by the North West Provincial Executive
Council, declaring an intervention in the affairs of the
municipality for a period of six months.
• An Administrator was appointed from the 1 August 2009 for a
period of six months.
• The administrator appointed a Project Manager and a secretary
to assist with the administration of the intervention.
• The intervention period was extended for one month to the end
of January 2010 and then again for a further period of six
months, to the end of July 2010.
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Terms of Reference of the Administrator
• Normalisation of all labour related matters of the District
Municipality.
• Implementation of the Auditors General’s report on the Brazil
soccer project.
• Water and Sanitation provision in all Local Municipalities under
the district
• Report on the validity and legitimacy of all recently awarded
contracts.
• Report on possible fraud, related to endowment policies.
• Advertise and facilitate the appointment of a Municipal Manager
and resolve all outstanding matters pertaining to previous
Municipal Managers.
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Achievements of the intervention
Normalisation of all labour related matters
• LLF functions as an important link between labour and
management.
• A new organogram was developed and approved together with
the officials and the union, in line with the strategic plan
adopted during August 2009
• The SDBIP’s developed and performance agreements of the
section 56 managers are signed and a new automated
performance management system is up and running.
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Achievements of the intervention cont....
Disciplinary Hearings and Policies
• The CFO has decided to resign and the other disciplinary
hearings of senior personnel are still continuing
• An investigation into the finance department has revealed a
number of irregularities and 5 officials were charged and
disciplinary hearings are continuing.
• Most of the policies of council was outdated and not
implemented . Policies are reviewed and implemented on an
ongoing basis.
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Achievements of the intervention cont....
Advertise & facilitate the appointment of MM & resolve all
outstanding matters pertaining to previous MM’s
• The appointment of a Municipal Manager was not successful due to
the period of appointment as stated in the advert
• The decision for a substantive MM to be appointed was left to the
incoming new administration of municipal elections.
• Council resolved to appoint Mr Uys, the project manager as an
acting Municipal Manager replacing Me Mbali as acting Municipal
Manager.
• Cases against Mr Ramphele and Mose are still pending, all other
outstanding matters concerning previous municipal managers were
resolved.
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Achievements of the intervention cont....
Implementation of the Auditors General’s report on the Brazil
soccer project.
• The children were successfully returned and integrated into
normal life. The officials, except for one whose case is still
pending, involved in the agreement were successfully disciplined.
•
Outstanding matters in respect of creditors were also resolved.
•
A Report was submitted by the District to the Provincial public
accounts committee as a respond to a number of questions raised
by the chairperson.
•
The District also engaged the chairperson of local government and
traditional affairs portfolio committee on the matter.
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Achievements of the intervention cont....
Water and Sanitation provision in all Local Municipalities
under the district
• A total number of 15 capital projects were successfully
implemented and more capital projects are planned to be
implemented during the 2010/2011 financial year. The
Administrator also engaged in negotiations to obtain a loan from
DBSA to enhance the capital budget to be able to move certain
projects forward in an effort to expedite service delivery.
• Maintenance on sewerage works were extended to local
Municipalities. Service providers were appointed to manage and
maintain WWTW and to assist in desludging septic tanks.
• A number of Local Municipalities were assisted by making available
vehicle and equipment to clean certain areas.
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Achievements of the intervention cont....
Report on possible fraud, related to endowment policies.
• No wrongdoings were found in these investigations and it was
also confirmed by the police who investigated the case.
Report on the validity and legitimacy of all recently
awarded contracts.
• The process of investigating the awarding of the contracts is
complete and District Municipality have instructed their lawyers
to act on anomalies that were uncovered. The process is still
continuing
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Challenges identified by the District
Administration
• The administrative function of council was once again
compromised by strikes and an attitude of less is best.
• Section 56 managers are meeting regularly with their sections and
the reports indicate that managers are still challenging the
authority of Section 56 managers.
• Managers are representing junior staff and the line between
management and union affairs are not always clear to managers.
Guidance and training/advice are given to both Section 56
managers and other managers as an effort to solve their problems.
• Disciplinary action will have to be taken to ensure that officials
understand that it is not business as usual.
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Challenges identified by the District cont...
Finance Department
• The finance department is still under capacitated. The acting CFO
is doing her level best but she does not get support on senior
level.
Municipal Health
• The district municipality is responsible for the municipal heath
services in the district. Progress on implementation is very slow
but the appointment of a section 56 manager and the release of
the manager responsible for health from that position should assist
in expediting the matter.
• Finances to implement health services on an expectable level are
however not available
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Challenges identified by the District cont...
Basic Service Delivery: Water Provision
• There is no accurate baseline information.
• District has to conduct services backlog study using the CDW.
• Lack of operations and maintenance
• Insufficient maintenance budget. This lack of operational funding
result in the “knock effect”. The district relies on conditional grant
funding such as MIG for capital infrastructure.
• Fragmented development due to poor planning.
• Due to the arid nature of the district some of the water schemes
are currently failing to meet the demand, this challenge is
exacerbated by growing demands in other areas.
• Lack of provision of a higher level of service for settlements that
can afford paying for services.
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Challenges identified by the District cont...
Basic Service Delivery: Waste Water Treatment Works
• Consultants were appointed consultants to conduct assessments
study and implement plans on managing the WWTW’s. The
sustainability of this project is dependent on the assistance from
locals and there are serious doubts if they will be able to manage
the WWTW after the consultants have left.
• Sannieshof has provided the District Municipality with an
alternative method of dealing with waste water that can benefit
the community and job creation. The cost involved is very high
and investigations into the feasibility of the project will start soon.
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Challenges identified by the District cont...
General Basic Service Delivery Challenges
• Lack of proper institutional arrangements in delivery of service.
• Outstanding business plans from local municipalities (WSP) as per
the Interim Service Level Agreements
• Inadequate staff capacity (Geohydrologist, plant operators), the
service delivery department is not staffed in line with the functions
currently performed.
• Lack of a district shared staff retention and resource sharing
strategy.
• Lack of policies and by-laws.
• No tariff structure.
• No proper asset management and maintenance plan.
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Section 154 intervention
• Based on the above achievements of section 139(1)(b) by the
administrator, Ngaka Modiri Molema District Municipality is well on
its way to recovery. Most of the current problems experienced by
the District Municipality are common to local government.
• But also acknowledging that the administration is, however, still
very fragile and need guidance. Immediate uplifting of the
intervention could result in eroding the gains that have been made
so far.
• The Provincial Government intervened in terms of Section 154(1)
of the constitution which gives National and Provincial Government
the opportunity to assist local government in the spirit of Co
operative governance , a chance to support and guide council
without really intervening in its day to day operation.
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Section 154 intervention cont...
• Council therefore appointed the current administrator in the
position of acting municipal manager in August 2010 for a period
of six months with instruction to assist council amongst other with
the following:
 Strengthen administration / management by specific training and
workshops.
 Implement policies and audit results regularly.
 Institute disciplinary actions as a corrective measure.
 Iinvestigate options for financing infrastructure development and
where feasible Grant Funding.
• The contract of the Acting Municipal Manager expired on the 4
February 2011 and a new acting Municipal Manager is appointed
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Recommendations
It is recommended that:
• Select committee notes the upliftment of the
intervention in terms of Section 139 1(b) of the
Constitution of the Republic of South Africa.
• Select Committee notes the progress made and
outstanding challenges
• Select Committee notes the Provincial Exco’s.
commitment to support and assist the council in
performing its constitutional obligation in terms of
section 154(1) of the constitution of the Republic of
South Africa.
• Section 154(1) intervention progress(close-out)
report to be submitted to select committee in due
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course
THANK YOU
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