PRESENTATION TO THE PORTFOLIO COMMITTEE ON PROVINCIAL AND LOCAL GOVERNMENT

BUDGET REVIEWPROGRAMME 4

BRANCH: SYSTEMS AND CAPACITY BUILDING

Ms Shiva MakotokoActing Deputy Director-General

13 March 2007

INTRODUCTION

1. Purpose of Programme and Core Functions

2. 2006/07 High Level Achievements

3. Budget Review

4. 2007/10 SCB Strategic Priorities

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1. PURPOSE OF PROGRAMME AND CORE FUNCTIONS

Provides support to Local Government to build institutional and administrative systems within the following areas:

1. Intergovernmental Fiscal Relations

2. Local Government Institutional Development and Administrative Systems

3. Local Government Anti-Corruption

4. Performance Management and Support

5. Municipal Leadership Development Programme

6. Local Government Equity and Development.

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HIGH LEVEL ACHIEVEMENTS-ENE 2006/07

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1. Management and administration of LGES & MSIG

2. Property Rates Act implementation- Regulations gazzetted for implementation-1st set

3. Publish key administrative Regulations- Performance Management Regulations

4. Legislation on unified conditions- Contribution to the DPSA Single Public Service Project

5. Performance Management- A PM audit was undertaken and the Framework has been developed. The Financial Early Warning System is being piloted in 12 municipalities. Performance Excellence was awarded

6. LOGOLA- Municipal Leadership Development Programme will be launched and rolled out in March

7. Anti- Corruption – The LGAC strategy was developed, launched and targeted implementation in 33 PC municipalities

8. Equity and Development – Draft Gender policy currently being aligned to the LG 5 year plan, HIV Framework not finalised pending consultations.

HIGH LEVEL ACHIEVEMENTSCHIEF DIRECTORATE

ACHIEVEMENTS

Intergovernmental Fiscal Relations

•Municipal Property Rates Regulations Gazetted•Support Programme for the implementation developed and approved•Proposal on activating the Development component submitted to NT

Performance Management Systems

•Successful Vuna Awards held •Performance Management Audit conducted and a Draft Implementation Strategy developed; •GRAP/GAMAP conversion tool implemented in 15 municipalities; additional 42 municipalities were supported. •Hands on financial management support provided to 75 municipalities on annual financial statements• For the first time in the history of the MSIG, expenditure trends are improving. increasing from 17% in 2005 to 34% as at January 2007, improved compliance with DORA achieved.

Municipal Leadership Development Programme

•NQF Level 4 Modules approved;•Learning material processed for piloting;•Launch the MLDP Pilot-March•Competency Guidelines for Section 57 employees published for implementation

HIGH LEVEL ACHIEVEMENTSCHIEF DIRECTORATE

ACHIEVEMENTS

Local Government Anti-Corruption

•Developed and Launched the Local Government Anti Corruption Strategy and implementation Plan;•Implementation started in 30 municipalities to develop policies and procedures

Local Government Administrative Systems

•Performance Management Regulations Gazetted for Implementation; Workshops convened in all 9 provinces and selected Districts to communicate the Regs. and implementation guidelines and Manuals. Support provided to individual municipalities •Two versions of the Councilor Remuneration Framework Gazetted for implementation;•Local Government Laws Amendment Bill drafted and approved for submission to Cabinet.•Input on the Single Public Service Draft legislation

Local Government Equity and Development

•LG HIV/AIDS Policy framework-further consultations undertaken.•LG Gender policy framework is being aligned to the strategic agenda;•Convened a Women in Local Government Conference. •Supported DM as the new convener in coordinating 16 Days of Activism Campaign•Developed a Concept paper for Youth Development & Framework for NYS

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Systems and Capacity Building  2006/07 2007/08 2008/09 2009/10

  Adjusted Medium-term estimates

  appro- MTEF Baseline

  priation    

Management 835 746 741 810

Intergovernmental Fiscal Relations 5,991 6,494 6,845 7,050

LG Institutional and Admin. Systems 8,222 5,639 5,944 6,122

Capacity Building Systems - - 39,045 40,219

Disaster Management 37,056 47,010 54,009 65,179

Municipal Performance Mon. & Support 11,643 18,273 19,260 19,838

Municipal Leadership Dev. Prog. 6,179 2,440 2,572 2,646

Anti-Corruption 2,424 2,900 3,057 3,148

LG Equity and Development 5,430 5,627 5,932 6,109

Project Consolidate 29,521 37,047 - -

Total of subprogrammes 107,301 126,176 137405 151,121

PORTFOLIO COMMITTEE ON PROVINCIAL AND LOCAL GOVERNMENT

BUDGET REVIEW

3. STRATEGIC PRIORITIES (2007/10)

a. Implement legislative and policy refinements to existing LG laws arising from lessons on PC.

b. Regulate LG Administrative and HR Systems in line with the Systems Act, 2000

c. Implementation of municipal performance management system

d. National monitoring system on performance management fully developed

e. Improved skills and effectiveness of local Government leadership

f. Local Government Anti-Corruption strategy rolled-out

g. LG Gender Policy developed with focused Training and Development on Women in LG

h. Implement the LG HIV/AIDS Framework, and establish LG Youth Development Strategy

i. Support National Treasury on work towards finalising the LG Fiscal Framework

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• Process LG Laws Amendments Bill through Parliament during

2007/08.

• Municipal Property Rates Act Regulations - Gazette second set

of regulations for public comment.

• Develop and roll out a framework to entrench Batho Pele principles in local government.

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(a) Finalise legislation and policy refinements to existing LG laws

• Improve the regulatory environment by issuing regulations on:

• Dispute Resolutions and management of suspensions in LG

• Remuneration Framework for Section 57 Employees in LG

• Other HR Systems – 2008/10

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(b) Regulate LG Administrative and HR Systems …

(c) Implementation of municipal performance management system

• Consolidate and Gazette Norms and Standards for each of the 5 KPAs on LG performance

• Implement the Performance Management Strategy and pilot in selected PC municipalities

• Host Performance Excellence Ceremony – VUNA Awards

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(d) National Monitoring System on LG Performance fully Developed

• Publish the Annual Performance Report on LG

• Extend the Pilot Programme on the LG Financial Early Warning System.

• Monitor the implementation of Municipal Performance Regulations;

• Monitor the implementation of the LG Anti-Corruption Strategy

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(e) Improved skills and effectiveness

of local Government leadership • Fast-tracking and finalizing work on the Local

Government skills audit

• Strengthen local government leadership by implementing

the Municipal Leadership Development Programme –

increase the targeted number of municipalities

• Targeted Development Programme for women in LG.

• Continue to provide targeted financial management hands-on support-Project Consolidate Municipalities.

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(f) Local Government Anti-Corruption Strategy roll-out

Improve the capacity to account for public resources and support all programmes that are designed to improve governance and fight corruption:

• Increase the number of PC municipalities implementing the LG Anti-Corruption Strategy.

• Review Legislation to clearly define roles and responsibilities of different spheres of government and organs of state.

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(g) Support National Treasury on work towards finalising the LG Fiscal Framework

• Further refinement that should lead to finalisation and stabilisation of the local government fiscal system that should focus on

• (a) Improving efficiencies based on the revenue raising capacity; and- Activation of the Development component;

• (b) Bias Intergovernmental Transfers towards municipalities with low fiscal

capacity and a inadequate revenue base.

• Implement key local government finance legislation and strengthen financial management support and oversight at the national and provincial levels – MFMA, MSA, MPRA.

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2007/08 STRATEGIC PRIORITIES1. Build capacity in respect of performance management systems for municipalities

2. Implement mechanisms that regulates HR policies and practices within

municipalities;

3. Mainstreaming equity and development within municipalities;

4. Support municipalities to improve their capacity to account for public resources;

5. Support and monitor the implementation of the Municipal Property Rates;

6. Develop framework to determine and improve the financial viability of

municipalities

7. Develop mechanisms for municipalities with a good credit rating to borrow

Continue to focus on Performance Management and improving institutional development and stabilizing administrative systems, including addressing Equity, anti-corruption and financial viability.

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Thank you!