BUDGETARY REVIEW AND RECOMMENDATION REPORT OF THE
PORTFOLIO COMMITTEE ON CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS, DATED
28OCTOBER 2014
The Portfolio Committee on Cooperative Governance and Traditional
Affairs, having considered the performance and submission ofthe
Departments of Cooperative Governance and Traditional Affairsto
National Treasury for the medium term period, reports as follows:
1. Introduction
1.1.
Mandate of
Committee
As a
Committee of the National Assembly, as provided in Chapter 4 of the
Constitution of South Africa, and in accordance with the Rules of the National
Assembly, the Committee is mandated to:
·
Consider, amend, approve or reject
legislation;
·
Consider and approve budgets and monitor
expenditure of the Department and entities reporting to it;
·
Consider progress reports from line-function
departments, and provincial and local government authorities and entities on
their respective mandates;
·
Ensure that all appropriate executive organs
of state are held accountable for their actions; and
·
Conduct oversight over the national executive
authority and any other organ of state.
1.2.
Description
of core functions of the Department.
The aim of
the Department of Cooperative Governance and Traditional Affairs is to improve
cooperative governance across the three spheres of government in partnership
with institutions of traditional leadership to ensure that provinces and
municipalities carry out their service delivery and development functions
effectively.
In
accordance with the Intergovernmental Relations Framework Act (2005), the
Municipal Property Rates Act (2004), the Municipal Systems Act (2000) and the
Municipal Structures Act (1998), the Department is mandated to:
·
Develop, monitor and support the
implementation of national policy and legislation, seeking to transform and
strengthen key institutions and
mechanisms of governance to fulfil their development role;
·
Develop, promote and monitor mechanisms,
systems and structures to enable integrated service delivery and implementation
within government; and
·
Promote sustainable development by providing
support to and exercising oversight over provincial and local government.
The
Department’s aim and mandates underpins its three strategic priorities over the
medium term, which are to:
·
Strengthen accountability, governance and
oversight of provincial and local government;
·
Facilitate local economic development and
improve access to basic services; and
·
Develop a policy platform for a differential
approach to municipalities.
The
Department also oversees the following entities:
·
The
Commission for the Promotion and Protection of the Rights of Cultural,
Religious and Linguistic Communities, which promotes and protects cultural,
religious and linguistic rights.
·
The Municipal
Demarcation Board, an independent authority responsible for determining
municipal boundaries and also mandated to declare district management areas,
delimit wards for local elections, and assess the capacity of municipalities to
perform their functions.
·
The South
African Local Government Association, which is mandated by the Constitution
to assist in the comprehensive transformation of local government
·
The Municipal
Infrastructure Support Agent, which is mandated to render technical advice
and support to municipalities, as well as strengthen their capacity to provide
access to basic services. However, during the financial year under review, the
Department still accounted for MISA.
1.3.
Purpose of
the BRR Report
The
Money Bills Procedures and Related Matters Amendment Act (Act 9 of 2009) sets
out the process that allows Parliament to make recommendations to the Minister
of Finance to amend the budget of a national department. In
October of each year, portfolio committees must compile Budgetary Review and
Recommendation Reports (BRRR) that assess service delivery performance given
available resources; evaluate the effective and efficient use and forward
allocation of resources; and may make recommendations on forward use of
resources. The BRRR are also source documents for the Standing/Select
Committees on Appropriations/Finance when they make recommendations to the
Houses of Parliament on the Medium-Term Budget Policy Statement (MTBPS). The
comprehensive review and analysis of the previous financial year’s performance,
as well as performance to date, form part of this process.
1.4.
Method
This
Report assesses the service delivery and financial performance of the
Department of Cooperative Governance and Traditional Affairs and its entities
for the 2013/14 and 2014/15 (until October 2014) financial years. This
assessment is informed by committee briefings and other sources of information.
1.5.
Outline of
the contents of the Report
The rest
of the Report proceeds as follows: section 2 provides an overview of key policy
focus areas on cooperative governance and traditional affairs during the period
under review; a summary of previous key financial and performance
recommendations of the Portfolio Committee on COGTA is presented in section 3;
section 4 providesan overview and assessment of reportedfinancial and service delivery performance for
2013/14 and 2014/15; Section 5presents the Portfolio Committee’s observations
and responses on COGTA’s technical, governance, service delivery and financial
performance issues; a summary of additional reporting requests by the Portfolio
Committee is tabulated in section 6; and recommendations in section 7 conclude
the Report.
2. Overview of the key
relevant policy focus areas
Government’s
medium term strategic framework (MTSF)for the period
2014 – 2019 sets down the priorities for structural reform over this period. As
recently articulated in the 2014 Medium Term Budget Policy Statement (MTBPS), these
include:
·
Building the capacity of the public sector,
particularly at local government level, through the ‘back to basics’ approach,
focused on improving service delivery, accountability and financial management;
and
·
Reshaping South Africa’surban
environment through integrated spatial planning and expansion of the municipal
debt market
The MTSF
priorities give expression to the key priorities of the National Development
Plan, whose achievement depends on an economy that is growing rapidly over an extended
period of time. Public spending is the necessary foundation for this growth,
and in this regard government is focusing on several policy goals. These
include creating dynamic cities by fostering well-planned and well-managed
urbanisation and reforming the structure and conditions of infrastructure
grants to local government. Government is providing support to enable cities to
promote growth and urban transformation by means of:
·
A project preparation facility that helps
municipalities prepare plans that are ready for implementation;
·
An infrastructure delivery mechanism that is
being expanded from provinces to large cities; and
·
Technical assistance that will support the
review of municipal borrowing strategies.
Over the
next three years, R560 billion (inclusive of the local government equitable
share) has been made available for service delivery and municipal
infrastructure development, among other things. Strong spending growth is also
envisaged for the Community Work Programme (CWP), which will be rolled out to
every municipality by 2017. All these policy thrusts are fundamental to, and
impact directly on, the mandates of the Department of Cooperative Governance,
the South African Local Government Association, and the Municipal Demarcation
Board.
3.
Summary of previous key financial and performance recommendations of
Committee
3.1.
2012/13 BRRR
recommendations and responses by the Department
With respect to the 2012/13 BRRR recommendations, the Portfolio
Committee only received the following report from the Department:
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3.2.
Evaluation of response by Department |
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As the Table on sub-section 3.1 indicates, the Department had only three
responses out of the nine directly relevant matters raised in the previous
year’s BRR Report. The last two of these response were
not part of the Committee’s Recommendations.
4. Overview and
assessment of financial performance
4.1.
Financial and
service delivery performance 2013/14
For
the 2013/14 period the Department of Cooperative Governance and Traditional
Affairs had an available appropriation of R58.5 billion. 96 per cent of this
allocation or R56 billion consisted of transfers and subsidies to provinces,
municipalities and departmental entities. The Department had an available
budget of R2.5 billion for operations. The lion’s share of operational
expenditure consisted of payments for participants in the Community Work
Programme.[1]
The Department spent 96.5 per cent of its total appropriation, thus incurring
under-expenditure to the value of R2 057 335 000 billion. This
is a substantial increase from the R1 412 259 billion
under-expenditure reported in 2012/13 and represents the highest figure
compared to all other financial years, beginning from 2007/08. The under-expenditure largely reflects Local
Government Equitable Share allocations (relating mostly to the Municipal
Infrastructure Grant) that were withheld from municipalities that did not
return unspent funds.
4.1.1.
Quarterly spending trends
The total expenditure of the Department amounted to R39.743 billion at
the end of December 2013, which represented a 68.0 per cent spending rate of
the total appropriation of the 2013/14 financial year.
Programme 1:
Administration
Expenditure trends: The Programme
reflected a 71.7 per cent spending rate at the end of December 2013. The key cost drivers within the Programme
were external audits, operating leases, and property payments.Of
the nine sub-programmes that make up the Administration Programme, Financial Services is the only
sub-programme that showed a variance between the final appropriation and actual
expenditure by the end of the financial year. R27 030 million was spent
against a final appropriation of R27 412 million, leaving a balance of
R382 000 in under-expenditure. This was the opposite case in the previous
financial year where Management was
the only sub-programme that showed no variance between appropriated funds and
actual expenditure. Overall programme under-expenditure was R22 213
million during this period.
Planned targets: The Programme
achieved almost all the targets set for the year under review. Only one project
was deferred for finalisation during the 2014/15 financial year and this was a
monitoring and reporting system for local government, which was to be developed
by 31 March 2014.
Irregularities and
allegations of financial mismanagement: The Department reported
that there were irregularities in the Information Technology Infrastructure at
the National Disaster Management Centre, and that the Internal Audit assisted
with finalising an investigation while the Department is in the process of
implementing appropriate disciplinary action. It was also reported that the
Special Investigating Unit (SIU) received a proclamation on 23 January 2014 to
conduct an investigation into allegations of mismanagement of departmental
funds by the South African National Cooperative Limited (SANACO).
Programme 2: Policy,
Research and Knowledge Management (PRKM)
PRKM demonstrated a 61.3 per cent spending rate at the end of December
2013. The low spending was attributed to the delays with the migration from
Novell to Microsoft and the renewal of SITA license that are paid in February
each year. By 31 March 2014, the Programme recorded under-expenditure to the
value of R730 000 due to vacancies not filled on time. The bulk of this
under-expenditure fell under the Knowledge
and Information Management sub-programme. This is slightly less than the
under-expenditure of R1 852 million incurred in 2012/13.
Programme 3: Governance & Intergovernmental Relations
Expenditure trends: The Programme
reflected a 70.3 per cent spending rate at the end of December 2013. The low
spending was attributed to delays with the start of some planned projects as a
result of consultations with different stakeholders.The
available amount of R12 billion at the end of December 2013 related to the
Local Government Equitable Share for payment to the municipalities in line with
the Division of Revenue Act, 2013 (Act 2 of 2013) (DORA) requirements. The low
spending was attributed to:
·
Delays with the start of
some planned projects as a result of consultations with different stakeholders;
and
·
The offsetting of the Local
Government Equitable Share in terms of Section 21(4) of DORA in respect of some
municipalities in consultation with the National Treasury, which may result in
a saving on transfer payments funds allocated to this Programme.
By
the end of the 2013/14 financial year, the Programme incurred a total
under-expenditure of R1 645 285 billion, most of which relates to the
withholding of equitable share funds in respect of some municipalities, which
did not perform according to the requirements of the Division of Revenue Act.
This is a significant increase compared to the R743 948 million incurred
in 2012/13. The Intergovernmental Fiscal
Relations sub-programme also showed substantial variance, with R11 274
million unspent in 2013/14 compared to R1 852 million in 2012/13.
Interestingly, the sub-programme had a much bigger amount to spend (a final
appropriation of R142 805 million) during the latter period compared to
R26 903 million in 2013/14. The transfer to the South African Cities
Network showed a substantial increase, amounting to R11 786 million in
2013/14 compared to R5 540 million in 2012/13.
Ward Committees: Deepening participatory democracy through a
refined Ward Committee model is one of the Department’s strategic goals towards
realising the vision of an integrated, responsive and highly effective
governance system. The Governance and Intergovernmental Relations Programme,
which seeks to strengthen the functionality of Ward Committees (among other
objectives), gives effect to this strategic goal. The Department reported that
as at 31 March 2014, a total of 2 059 ward level operational plans had
been developed and were being implemented in 125 local municipalities.
Government’s Twenty Year Review has
noted that ward committees have not worked as intended, as characterised by the
often formulaic and symbolic interactions that ‘have generally not helped to
strengthen links between communities and councillors.’[2]
Programme 4: National
Disaster Management Centre (NDMC)
The Programme had a final appropriation of R694 439 million in
2013/14. It reflected a 26.9 per cent spending rate at the end of December
2013. R488 million (94.6 per cent) of the available amount of R516 million at
the end of December 2013 related to the Disaster Relief and the Municipal
Disaster Recovery Grants.The low spending was attributed to:
•
The
finalisation of the movement to the new premises and the effect thereof on
related services; and
•
The
uncertain nature of disasters
At the end of the financial
year there was a balance of R270 580 million in unspent funds, most of
which related to the Disaster Relief
sub-programme. R252 870 million of the unspent funds relates to the
Provincial Disaster Grant and R17 386 million to the Municipal Disaster
Grant. The under-expenditure was not unusual as disaster relief funds are only
spent when disasters occur.
Programme 5: Provincial & Municipal
Government Systems (PMGS)
The Programme indicated a 96.7 per cent spending rate at the end of
December 2013. By the end of the financial year there was no reported variance
between the Programme’s final appropriation and actual performance in terms of
expenditure. This trend was almost similar to the previous financial year,
except that the Management: Provincial
and Local Government Support sub-programme reportedly incurred under
expenditure to the amount of R139 000 in 2012/13.
Programme 6: Infrastructure and Economic
Development (IED)
The Programme reflected a 63.5 per cent spending rate at the end of
December 2013. R5 287 billion (88.8 per cent) of the
available amount of R5 971 billion at the end of December 2013 related to the
Municipal Infrastructure Grant. By the end of the financial year, all
the sub-programmes under Infrastructure and Economic Development showed a
variance between the final appropriation and the actual performance in terms of
expenditure. Consequently, the Programme underspent its allocation by
R140 358 million, which is slightly less compared to R209 902 million
in 2012/13. The bulk of the unspent funds related to the Municipal
Infrastructure Grant (R130 084 million) and the Community Work Programme
(R9 619 million).The MIG fund was stopped for those municipalities that
reported an expenditure of 30 per cent and below of their 2013/14 MIG
allocation as at end January 2014.The under expenditure on the MIG was an
increase from the R2 471 million recorded in 2012/13, while that of the
CWP showed a decrease from R158 955 million in 2012/13.
Programme 6.1: Community Work Programme
(CWP)
Expenditure trends: The Community
Work Programme reflected a 67 per cent spending rate at the end of December
2013. The sub-programme received roll-over funds which were planned to be spent
in February and March 2014. The key cost drivers within CWP were wage costs,
material costs, project management and material costs. The low spending was
attributed to municipal sites that were established later in the 2013/14
financial year. While noting improvements in the internal controls of the
Department during the financial year under review, the Audit Committee has
raised concerns regarding the monitoring and evaluation of the CWP
sub-programme. An independent consulting firm also conducted a forensic
investigation, based on a number of allegations and complaints regarding the
implementation of the CWP. This related to procurement and irregularities in
the awarding of the tender to lead agents as well as the validity of participants.These irregularities amounted to R356 703
million. In 2012/13 an amount of R418 600 million relating to a CWP
contract was detailed as an irregular expenditure not recoverable (not
condoned). With the approval of National Treasury, R804 617 million in
irregular expenditure had to be written off as no official was found liable for
this expenditure.
Programme 6.2: Municipal Infrastructure
Support Agency (MISA)
59.8 per cent of the available budget of R262 040
million was paid to and in respect of MISA up to the end of December 2013.The
slow spending was attributed to the progressive operationalization
of MISA to function independently as a government component.During the financial year under
review, the MISA, previously a sub-programme under the Infrastructure and
Economic Development Programme, became an independent entity with effect from
May 2013. The Audit Committee has also raised concerns regarding the
functionality and legal status of the entity.The
sub-programme also incurred fruitless and wasteful expenditure amounting to
R328 000.
Programme 7: Traditional Affairs (DTA)
The total DTA expenditure amounted to R111 702 million for the
period under review. DTA reflects a 76.2 per cent spending rate at the end of
December 2013.There was no reported variance between actual expenditure and the
final appropriation.The DTA has attained most of the
targets it had set out achieve in the 2013/14 Annual Performance Plan. However
there is still much room for improvement in relation to the National
Traditional Affairs Amendment Bill.
Conditions
of Service for Traditional Leaders: In 2013/14 the
Department had undertaken to engage in ‘consultation on norms and standards for
tools of trade for the institution of traditional leadership to address
inconsistencies across provinces.’[3] The
inequities in ‘tools of trade’ had also been a major area of contention when
the Portfolio Committee on Cooperative Governance and Traditional Leadership
met with traditional leaders in King Sabatha Dalindyebo Municipality in the Eastern Cape towards the end
of the 4th term of Parliament. Both the Annual Report and the DTA’s
Strategic Plan 2014 – 2019 made reference to the ‘development and adoption by
all stakeholdersof the Framework for tools of trade
for traditional leaders’[4] in
2013/14. Parliament appears not to have been involved in the development and
adoption of the Framework for Tools of Trade for Traditional Leaders.
4.1.2.
Auditor-General Reports
For the period under review, the Department received an unqualified
audit opinion with findings on the usefulness and reliability of performance
information and non-compliance with certain laws and regulations. In
particular, the
Report of the Auditor-General noted that the Department did not have adequate
monitoring systems in place to ensure that all supporting records of attendance
registers, registration forms and contracts for the Community Work Programme are
maintained. Consequently performance data on the CWP could not be verified.
For the second year in
succession, SALGA achieved a ‘clean audit’, which is a welcome departure from
the era of disclaimers in 2004/05, 2005/06 and 2006/07.The MDB has
received an unqualified audit opinion for the period under review, which is
short of the clean audit it had targeted, because the Auditor-General raised
emphasis of matter relating to incidences of irregular expenditure.[5]The CRL
Commission has also received an unqualified audit opinion.
4.2.
Financial
performance 2014/15
·
Quarterly spending trends
Between
April and September 2014, the Department of Cooperative Governance and
Traditional Affairs had spent R23.4 billion (or 36.5 per cent) of its R63.4
billon allocation for the 2014/15 financial year.
·
Reported spending pressures.
a)
Effective and efficient management and administration
of the CWP, including providing and maintaining 1 million work opportunities in
all municipalities.
b)
Strengthening the capacity of municipalities to
deliver sustainable infrastructure and increase access to basic services
through the ‘back to basics’ approach, including provision of free basic
services to the poor.
4.2.1.
Key reported achievements
·
Department of Cooperative Governance and
Traditional Affairs
The period
under review marks twenty years of democratic government in South Africa, which
has seen an impressive record of expansion of service delivery. As some
academics have noted ‘basic service delivery has been extended to the
marginalised to a degree that is unprecedented in South Africa’s history, at a
pace that is noted and commended internationally.’[6]
A ‘close of term report presented to Cabinet reveals that households with
access to water now stands at 95 per cent, up from 92 per cent in 2009.’[7]
86 per cent of households now have access to electricity, though this remains
short of the targeted 92 per cent by the end of 2014. By September 2013, 86 per
cent of households had access to sanitation – an increase from 81 per cent in
2009 – while households with access to refuse removal increased to 72 per cent.[8]
·
South African Local Government Association
Assignment of housing
function to six metropolitan municipalities: During the year under
review, SALGA successfully lobbied and advocated for the assignment of the
housing function to Cape Town, Nelson Mandela Bay, Johannesburg,
Tshwane, Ekurhuleni and EThekwini metropolitan municipalities. Consequent from SALGA’s submission to the
Local Government Budget Forum in October 2013, a new conditional grant (the
municipal human settlements capacity grant) for the six metros was introduced
into the 2014/15 budget.
Clean audits: SALGA’s
achievement of clean audits in 2012/13 and 2013/14 marked it as a credible
voice in campaigning for clean audits in the local government sector.
4.2.2.
Key reported challenges
·
Despite departmental efforts at monitoring and
supporting municipalities to fill critical posts with suitably qualified and
competent persons, some municipalities have continued to fill such posts
without due regard to the regulations on minimum competency requirements. The Systems
Act requires the MEC to take appropriate steps to enforce compliance which may
include an application to court for a declaratory order on the validity of the
appointment. If the MEC fails to do this
the Minister may take the same steps.
·
The intermittent departmental restructuring processes
have resulted in the loss of critical skills and the shrinking of the staff
establishment, thereby rendering the department unable to deliver on its
mandate. The Department is engaging with the Department of Public Service and Administration
(DPSA) and the National Treasury to review DCoG’s organizational
structure and the financial requirements to address the above.
·
There are limited human and financial resources to
develop and maintain systems and processes necessary for the enhancement of
COGTA’s ability to fulfill its role as a champion of cooperative governance.
·
All the entities reporting to the Department
of Cooperative Governance and Traditional Affairs reported that they were not
adequately funded, which hindered their ability to fulfil mandates.
5. key committee
observations
·
Governance and operational issues
‘Back-to-basics’
approach: During the period under review the Minister of
Cooperative Governance and Traditional Affairs introduced the ‘back to basics’
concept. This is aimed at getting the basics right in municipalities, guided by
five basic principles:
a) Putting
people first by listening and communication;
b) Adequate
and community-oriented service provision;
c) Good
governance and transparent administration;
d) Sound
financial management and accounting; and
e) Robust
institutions with skilled and capable staff.
The Committee welcomes the ‘back to basics’
initiative and envisages that this will contribute to building the capacity of
the public sector in general, and local government in particular, in relation
to issues of service delivery, accountability and financial management.
However, the Committee has noted that provincial government, a key sphere that
also faces problems, has been somewhat left out. The Committee hopes that the
much needed focus on local government would not be at the expense of
overlooking the building of capacity in provinces.
·
Service delivery performance
Traditional Affairs: While
impressed with the achievements of the Department of Traditional Affairs during
the year under review, the Committee felt that these tended to be high level
achievements whose impact did not seem to cascade down to traditional
communities.
Death of initiates: The
Committee noted with concern the recurring death of initiates in the Eastern
Cape, Mpumalanga and the Western Cape. It noted that addressing this problem
required not only collaboration between the relevant parliamentary committees
and traditional leaders but also the involvement of the community, including
the parents of the initiates.
Bucket system eradication: The
Committee noted with concern that the amount of buckets eradicated in previous
financial year was very low and that more should be done to address this
problem. However the Committee noted that this was a complex problem and an
important component to resolving it is linked to functional water and
sanitation systems.
Non-financial survey of municipalities: The
Committee noted the findings of the non-financial survey of municipalities,
released by Statistics South Africa in August 2014, for the financial year
ending in June 2013. In particular it noted the reported increased access to
municipal water, electricity, sewerage and sanitation, and solid waste
management services.
Municipal Infrastructure Grant: The
Committee noted that in municipalities with non-functional Project Management
Units (PMUs) MIG funds tend not to be spent. The Committee noted the
Department’s envisaged initiative to strengthen the capacity ofmunicipalities including providing support to all
municipalities that spent less than 80 per cent of the MIG in the previous
financial year. The Committee also noted with concern cases of municipalities
that still use their MIG allocation to finance operational expenses. The
Committee welcomed the announcement that it will soon be permissible to use 7%
percent of the MIG for infrastructure maintenance.
·
Financial performance including funding
proposals
Review of the Municipal Infrastructure Grant: The
Committee has expressed some concerns regarding Municipal Infrastructure Grant
(MIG) expenditure. It had previously recommended that the Department
provides a roll out plan on steps to improve MIG spending in those
municipalities not covered by the MISA programme. In this regard, the Committee
welcomes the review of the MIG currently underway and hopes that reforms to
grants will improve the uptake of available resources for social
infrastructure.
Funding for South African Local Government
Association: The Committee has noted that SALGA’s allocation from
the national fiscus will decrease to R9 255 000 million in 2015/16 and
subsequently be discontinued from 2016/17. This a consequence of government’s
fiscal package to reinforce sustainability, including reducing growth in
spending, which will result in, among other things, reduced rates of growth in
transfers to public entities, particularly those with cash reserves. While
concerned about this development, the Committee also recognised that SALGA had
operating surpluses of R35.8 million and R31.3 million in 2012/13 and 2013/14
respectively, which are above the entity’s allocation from the national fiscus.
The Committee also expressed a concern about the unsustainable remuneration
levels of the senior management echelon of the organisation, as well as the
inequitable remuneration gap between the higher and lower salary bands.
Funding for the Commission for the Promotion
and Protection of the Rights of Cultural, Religious and Linguistic Communities: The
Commission requested an additional R29 million to augment its current
allocation in order expand the reach of its work. The Commission has received
R34.9 million for the current financial year. The requested additional funding
would almost double the Commission’s current allocation. However, the Committee
felt that the request for additional funds needs to be adequately
substantiated.
6. table of committee’s
reporting requests
Reporting matter |
Action required |
Timeframe |
Suspension
of the MDB CEO |
Report
to be provided to the Committee on progress
in resolving the matter |
Before
Parliament rises |
Monitoring
and evaluation of municipalities |
The Department
should report to the Committee on a quarterly basis on their monitoring and
evaluation of municipalities so that the Committee can address these
challenges proactively. |
Quarterly |
Project
Management Units |
The Department
should present a plan to assist those municipalities that do not have
functional Project Management Units (PMUs) as well as a plan to address the
use of conditional grant funding for non-approved purposes. |
March
2015 |
Forensic
reports |
The Department should
provide the Committee access to all the forensic reports received from
municipalities |
March
2015 |
MISA |
The Department
should report to the Committee on its plan to ensure that MISA is properly
constituted |
March
2015 |
7. Recommendations
7.1.
Financial
performance including forward funding recommendations
·
Local government funding model: The local government
funding model, and in particular the equitable share allocations, should be
reviewed.
7.2.
Performance
related recommendations
·
Monitoring expenditure of MIG:An
instrument to monitor expenditure on the MIG should be developed and a report on
this should be provided to the Committee on a quarterly basis.
·
SMART principle:More effort
should be put on ensuring that the performance indicators implemented by the
Department and its entities are Specific, Measurable, Achievable, Reliable and
Time-bound.
8. Appreciation
For
fruitful, cordial and constructive engagements the Committee thanks the
Departments of Cooperative Governance and Traditional Affairs, SALGA, the
Municipal Demarcation Board, the CRL Rights Commission, the Office of the Auditor-General,
and National Treasury, among others. The contributions of Committee Members, as
well as Committee Staff, are also gratefully acknowledged.
Report to
be considered.
references
Department of Cooperative
Governance and Traditional Affairs. (2014). Annual Report 2013/14.
COGTA. Pretoria.
Department of Traditional Affairs. (2013).
Presentation on 2013/14 Annual Performance Plan (including progress made on
targets set in the 2012/13 Annual Performance Plan). Parliament.
Cape Town. 16 April 2013.
De Visser, J. (2009). ‘Developmental Local
Government in South Africa: Institutional Fault Lines.’ Commonwealth Journal of Local Governance.
Vol.2
Municipal Demarcation Board. (2014). Annual Report 2013/14. MDB.
Pretoria.
National Treasury. (2014). Standing Committee
on Appropriations: 4th Quarter Expenditure Report, 2013/14 Financial
Year. Treasury. Pretoria.
National Treasury. (2014).
Medium Term Budget Policy Statement. Treasury.
Pretoria.
The Presidency.
(2014). Twenty Year Review South Africa:
1994 – 2014. Presidency. Pretoria.