LOCAL GOVERNMENT TURNAROUND STRATEGY

1. LOCAL GOVERNMENT TURNAROUND STRATEGY IMASA Conference, 08-10 September 2010 Sun City By: Vusi Mtshengu

2. Structure of Presentation Purpose Background Overview on SALGA Mandate Key Considerations on LGTAS LGTAS interface with Outcomes based Approach Role of SALGA & other key stakeholders in the process Way Forward & Recommendations

3. Purpose To advance a perspective on the LGTAS & outcomes based approach To articulate the Role of SALGA and other key stakeholders in the implementation process To escalate recommendations on how SALGA is going to do things differently in enhancing the performance of municipalities to deliver services

4. Background Assessments made of all 283 municipalities in 2009 Meeting between President and Mayors on 20 October 2009 Local Government Indaba 21-22 October 2009 Declaration at Local Government Indaba: Accept LGTAS, but to be discussed further before finalization SALGA participated in IGWG and provided input Cabinet approved LGTAS on 2 December 2009 All municipalities to have own MTAS by end of March 2010 (date extended to end of April 2010)

5. The new policy landscape: implications of the January 2010 Cabinet Lekgotla

6. Background�

7. Background.. Outcomes based approach, Performance Agreements & Delivery Agreements January 2010 Cabinet Lekgotla approved an outcomes based approach to improve service delivery July 2010 Cabinet Lekgotla re-emphasized the practicalization of this approach through the signing and implementation of Performance Agreements and Service Delivery Agreements All the outcomes are inter-departmental and/or intergovernmental in nature and require agreement between stakeholders and partners to work together The delivery agreement must essentially clarify the problem, identify what needs to be done to address it and identify the resources needed for the problem to be addressed

8. Background� President�s view and SALGA strongly supports: that the delivery agreements will only add value if: They do not become an add-on activity which is seen as a �compliance� driven burden They are found to be useful mechanisms for meeting the Constitutional obligations for departments and spheres of government to work together to achieve common objectives Departments take advantage of the fact that the outcomes and delivery agreements will be the strategic focus of Cabinet to raise the profile of key issues Departments find the rigorous application of the outcomes logic improves performance Once the delivery agreements are in place, we need to institutionalize strong monitoring of their implementation and regular reporting to coordinating structures be emphasized We need to change old things that do not assist to improve service delivery � less lamentations and propose solutions to speed up service delivery

9. WHO AND WHAT IS SALGA? Local government, as a sphere of government, consists of 283 municipalities Effective participation in the system of IGR requires that local government acts as a Collective (with a common vision) Local government can only act collectively through organized local government This imperative is recognized and entrenched in the Constitution and legislation (i.e. Organized Local Government Act, Systems Act, etc)

10. WHO AND WHAT IS SALGA? (cont.) Constitutional Imperatives Section 163 of the Constitution requires an Act of Parliament must provide for the recognition of a national and provincial organisations representing municipalities and to determine procedures by which:- local government may consult with the national or provincial government; designate representatives to participate in the National Council of Provinces (NCOP); and nominate persons to the Financial and Fiscal Commission (FFC).

11. WHO AND WHAT IS SALGA? (cont.) Legislative Imperatives ORGANISED LOCAL GOVERNMENT ACT 1997 The Minister (cogta) may recognise:- The national organisation representing the majority of provincial associations; and With the concurrence of the relevant MEC (LG) the provincial association representing the majority of municipalities in their province.

12. SALGA Background SALGA was established in 1996 and recognised by the Minister in January 1997; SALGA�s official status stems from its recognition by the Minister. SALGA does not have statutory executive authority over its members; SALGA�s power over its members stems from its Constitution. SALGA is a Schedule 3A Public Entity (PFMA), and as such reports to the Minister of CoGTA; SALGA has demonstrated a political preference for a unitary structure for organised local government, i.e. one structure that is governed through a constitution as one unit. 12

13. MANDATE OF SALGA Represent, promote and protect the interests of local government; Act as an employer body representing all municipal members; Affiliate and participate in the affairs of regional, continental and international organisations, that will serve the best interest of its members; Lobby and advocate for and on behalf of member municipalities; Act as resource for knowledge and information to municipalities.

14. POWERS OF SALGA Represent municipalities in IGR structures at both provincial and national level; The right to consult with national and provincial governments with regard to matters affecting local government; and Has no legislative or executive powers

19. LGTAS LGTAS General Principles

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21. Outcome Outputs& Programmes The Ministry of CoGTA has developed 7 outputs as they have agreed upon between the Minister and President, these are: Implementation of the differentiated approach to municipal financing, planning and support Improving access to basic services Implementation of the Community Work Programme Action supportive to Human Settlements outcomes Deepen democracy through a refined Ward Committee model Administrative and financial capability Single window of coordination

22. Outcome Outputs& Programmes� The Minister�s Performance Agreement commits him to achieve the following: The delivery of basic services which include water, sanitation, electricity and waste management Creation of several hundred thousand job opportunities by 2014 through the Community Work Programme, as part of the 4.5 million job opportunities to be created through the EPWP Transformation of administrative and financial systems of local government, which includes Supply Chain Management The filling of six critical senior municipal posts namely: MM, CFO, Town Planner, Town Engineer, HR Manager & Communications Manager That all municipalities in the country achieve clean audits by 2014 Building municipal capacity to enable municipalities to collect 90% of their revenues

23. LGTAS Differentiated approach The LGTAS acknowledged that the various municipalities have different capacities and are faced with different social and economic challenges. Depending on the challenges, it will be necessary for municipalities to focus on those responsibilities that they are able to deliver on. In addition to the legislative categorization of municipalities, the LGTAS further classifies municipalities into four classes, according to their vulnerability . The classification will guide the kinds and levels of support and interventions developed for the LGTAS. The approach to understanding municipal differences is intended to assist municipalities to reflect on their strengths and weaknesses.

24. LGTAS LGTAS Priorities Short term (up to March 2011): Address immediate financial and administrative problems in municipalities; Regulations to stem the indiscriminate hiring and firing; Ensure and implement a transparent municipal supply chain management system; Strengthen the capacity of ward committees and implement a new ward committee governance model; National and provincial commitments in the IDP; Differentiated responsibilities and simplified IDPs; Funding and capacity strategy for municipal infrastructure;

25. LGTAS LGTAS Priorities Short term (up to March 2011) (Cont.): Intergovernmental agreements with Metros on the upgrading of informal settlements, and the alignment of MIG funding and Housing subsidy programmes; Review and re-arrange capacity grants and programmes; Up-scale Community Works Programmes to ensure ward based programmes; Implement the revenue enhancement � Public Mobilisation campaign; Launch a Good Citizen campaign; Preparations for the next term of local government.

26. LGTAS LGTAS Priorities Medium term (March 2011- 2014): A single election for national, provincial and local government All citizens have access to affordable basic services; Eradication of informal settlements; Clean cities, through the management of waste in such a way that it creates employment and wealth; Infrastructure backlogs should be reduced significantly; All schools, clinics, hospitals and other public facilities have access to water, sanitation and electricity; Each of the wards have at least one sporting facility;

27. LGTAS LGTAS Priorities Medium term (March 2011- 2014) (Cont.): Each municipality has the necessary ICT infrastructure and connectivity; All provinces and municipalities have clean audits; Violent service delivery protests are eliminated; Municipal debt is reduced by half Empowered and capacitated organs of people�s power; Trained and competent councillors, traditional leaders, officials, ward committee members, CDWs and community activists.

28. LGTAS Role players in the LGTAS National Government; Provincial Government; Each of the 283 municipalities; Political parties; Other stakeholders.

29. LGTAS Role players in the LGTAS National Government: National Government undertook to better organise itself in relation to Local Government. COGTA is the implementing department with other sector departments also involved COGTA put in place structures for the implementation of the LGTAS Pilot project of two municipalities per province with hands-on support, thereafter it will be rolled out to other municipalities

30. LGTAS Role players in the LGTAS: COGTA COGTA functions: Establish Institutional Structures Mobilize resources and Stakeholders Implement and support LGLGTAS priorities Monitor, report and learn Structures of COGTA: The Ministerial Advisory Committee The National Coordinating Unit (NCU) � the Command Centre The NCU is ultimately responsible for the achievement of the five key strategic objectives of the LGTAS.

31. LGTAS Role players in the LGTAS: COGTA The Organisational structure of the NCU The NCU will function as a �Command Centre� and have the following components: Rapid Response Unit (Emergency, short-term interventions): The component will assist municipalities in current or potential �flashpoint� areas to address community concerns through immediate, emergency-based technical or political interventions. Structural Reform Units (Capacity building and delivery facilitation, medium term interventions): The component will provide administrative, management, financial and engineering skills to identified municipalities in consultation with the relevant province. Intelligence Unit (Communications, Stakeholder and Knowledge Management): The component will provide knowledge management, analytic and communications support to the NCU and other components. �

32. LGTAS Role players in the LGTAS: National Departments The following key activities have been agreed to: �National Departments to appoint a LGTAS �point-person� who will liaise with their sector and organise intergovernmental support, e.g. DWA working with their Regional Offices, Provinces, municipalities and WSAs re water access and management for the LGTAS National Sector Departments have to identify at least three (3) priority interventions to improve service delivery at municipal level (See Annexure A for policy and intervention maps). National Sector Departments have to work with Provincial Sector Departments and municipalities to instigate and monitor the interventions agreed upon. National and Provincial Sector departments will report on the commitments made in the IDPs towards the LGTAS, and these commitments will be monitored in the NCU. It therefore means identifying and collating the information and evidence required to substantiate / verify progress reports.

33. LGTAS Role players in the LGTAS: Provinces Develop a province specific implementation plan; Establish Provincial LGTAS TASK TEAMS, consisting of COGTA, provincial sector department and SALGA representatives; Work closely with the provincially based Technical Support Units; Provincial sector departments have to identify at least three (3) priority interventions to ensure better State cohesion and improved service delivery at municipal level; A key role of the provinces in the implementation of the LGTAS will be support, monitoring, and reporting on provincial sector performance.

34. LGTAS Role players in the LGTAS: Provinces Support, monitoring, and reporting will include: Alignment with the National Government approach and similarly undertake the applicable actions at a provincial level; Allocation of more resources towards the Local Government function: Better spending and outcomes, Alignment and resource commitments in IDPs; Improvement of performance and accountability including better communication and involvement of municipalities and communities in planning and execution of provincial functions: Municipal and public participation in provincial sector programmes, Improved oversight of municipalities; Monitoring and reporting on the implementation of the LGTAS (provincial interventions by provincial sector departments as well as municipal turnaround strategies).

35. LGTAS Role players in the LGTAS: Municipalities Municipalities reflect on their own performance and identify their own tailor-made turnaround strategies; To support the Municipal LGTAS and IDP the following process has been established, which is detailed in the Implementation Guidelines: �Development of a preparatory toolkit, including : COGTA / Provincial Assessment Reports Implementation Plan Implementation Guidelines Implementing of a four phase LGTAS approach to 2011 The establishment of LG Support Teams Facilitation of necessary skills and support Roll-out of support programmes to develop the Municipal LGTAS Templates and reporting guide

36. Key Findings & Identified Interventions- LGTAS Establishment of internal audit and risk management units Renew shared audit service and solicit buy-in from local municipalities Review of the delegation of authority Enforce compliance to leave and overtime policy and management Council and management to instill work ethics and management practices / strengthen management Review and conclude the organogram in relation to the existing budget. Ensure the alignment of the Performance Agreements to the SDBIP. �

37. Key Findings & Identified Interventions- LGTAS� Resuscitate the functionality of the LLF and develop the organisational rights procedures, Workshop them at LLF and solicit the buy-in from the unions but also adopt them for enforcement. Strengthen oversight role of council by defining roles and responsibilities of the Portfolio Committees Development of Communication strategy Council must play an active role in revenue enhancement and debt collection The ward councillors must improvise avenues to provide feedback to the communities especially communities residing in remote areas of their wards.

38. Key Findings & Identified Interventions- LGTAS� The council must develop, adopt and implement anti-corruption strategy to address all forms of corruption, perceived or real. The council must review the recruitment and selection policy in consultation with and consider the inputs of the unions. Depoliticise the ward Committees and apply PMS in respect of monitoring the functionality of ward committees. Signing of MoU between Council and Traditional Authorities to ensure that there are developments in their respective areas

39. Key Findings & Identified Interventions- LGTAS� Develop, adopt and implement a criteria for out of pocket expense in line with the Municipal Structures Act as Amended to reimburse the traditional leaders. Review Service Level Agreement with WSA and WSP Engage Dept. of Human Settlements on poor quality, non occupation and incomplete houses Strengthening participation in Energy forum and engage ESKOM on poor O&M, delayed responses to queries, electrification and upgrading of supply in all areas Prioritizing, energizing of high-mast lights Development and implementation of an O&M plan (especially roads, boreholes maintenance), Water Conservation and Demand Management Plans, Fleet management

40. Key Findings & Identified Interventions- LGTAS� Ring-fence O&M budget by Council Resolution Development and finalization of the roads and storm water, housing, water and sanitation and electricity master plans Undertake capacity assessment of Municipalities to deliver waste management service and service delivery options available Resuscitate the structure to ensure full participation by senior manager from sector departments Maximised participation and contribution of municipal departments, District Municipalities and government departments in the municipal planning structures and processes

41. Key Findings & Identified Interventions- LGTAS� Conversion of Town Planning Scheme to LUMS. To review Town Planning Scheme to be aligned to existing SDF (and update current SDF) To adopt the reviewed Organograms of the IDP & LED Units. To review LED Strategies and Plans and review the existence of the LED Agency Establishment and resuscitation of LED Intergovernmental Structures Municipalities to make meaningful contribution (10%) of its budget towards LED

42. Observations and Challenges All 24 municipalities have developed own MTAS Insufficient preparation by municipalities and their over reliance on the Provincial Support Team Sector Departments involvement not optimum SoEs and Local Government stakeholders involvement not optimum Lack of skills in Provincial Support Team especially on municipal finances Meaningful community involvement Resources

43. LGTAS Role players in the LGTAS: Political parties Political parties should promote and enhance the institutional integrity of municipalities.

44. LGTAS Role players in the LGTAS: Other stakeholders Other stakeholders include: Business; Donors/ development partners; Professional bodies; Civic formations; Religious bodies; Traditional leaders. A Civil Society Reference Group (CSRG) should be established early in 2010 to assist with monitoring of implementation of the LGTAS. COGTA plans the launch of a Good Citizenship campaign.

45. LGTAS The following principles should be considered in the implementation of the LGTAS: The Municipal TAS should respond to the municipal differentiated and specific priority focal areas: - Service Delivery, Spatial Conditions, Governance, LED, Labour Relations and Financial Management. Each municipality must identify at least three key levers that will drive their turnaround plan. These must be prioritized in the IDP, SDBIP and budget. Civil Society and community members that were consulted during the Local Government Assessment must be consulted before finalization of the Municipal Turn Around Action Plan and IDP. The support team should ensure that the municipality owns the LGTAS and assists in the development thereof. The LGTAS action plan should direct sector support, inputs, and commitments to the IDP

46. LGTAS Monitoring, Reporting and Learning Whilst implementation continues, COGTA will prepare for monitoring and the annual municipal assessment process, geared towards performance of the LGTAS. M&E system should probably include three core components: Component 1: Monitoring the trends of output localized indicators related to LGTAS targets and trend analysis � i.e. increased service delivery; Component 2: Monitoring the implementation of Policies, Programmes and Projects (PPP�s) that contribute to the achievement of LGTAS targets and explaining the gaps (e.g. contribution of progress with the reform of the Intergovernmental fiscal system to improved municipal financial viability); Component 3: Assessing the impact of selected policies, programmes and projects on LGTAS target indicators (e.g. Impact of Revenue enhancement � Public mobilization campaign implemented by 2011 on reduced debt or improved revenue collection in municipalities.)

47. LGTAS SALGA�s role in the LGTAS SALGA represented in the LGTAS IGWG of COGTA; SALGA is represented in the Provincial LG Task Teams by the Programme Managers: Governance and IGR ; SALGA prepared a draft SALGA LGTAS Implementation Guide for municipalities, submitted to provinces as a draft document to assist the PCU; SALGA provided a list of governance aspects that may be considered in the LGTAS SALGA participates in the pilot projects via the Programme Managers: Governance and IGR ; Further support provided to the majority of municipalities to finalize own Municipal LGTAS Hands-on support to municipalities by provincial offices.

48. SALGA Municipal Support Plan Key Deliverables Development of Recruitment, selection and suspension policies and procedures Capacitation of Local Labour Forums Clarification of Roles and Responsibilities : Office Bearers & Administration (Troika + 1) Promotion of Good Governance & Ethics Powers and Functions � Delegations Framework

49. Way Forward & Recommendations That municipalities monitor & measure their own performance against the general criteria of problems identified in the State of Local Government in South Africa, as well as the five strategic objectives of the LGTAS and its five key interventions in order to prepare and implement own MTAS. That municipalities be provided with all necessary support in the realization of the key objectives of the LGTAS That SALGA � as the Voice of Local Government emphatically re-affirms its commitment, meaningful participation and support towards the finalization of the process and the realization of the key objectives, outcomes and priorities of the LGTAS and Government�s Outcome-based Approach. That SALGA throws its full weight behind the successful implementation of the Provincial Integrated Service Delivery Plan That professional bodies e.g. IMASA, IMFO etc. with resident capacity be brought on board in partnering with other key role-players in building capacity of municipalities to discharge on their Constitutional mandate

50. CONSOLIDATION & SUSTAINABILITY PHASE

51. �The Dawn of A New Era for Local Government� I Thank You