MUNICIPAL LEGISLATION - THE NEWLY PROMULGATED MUNICIPAL SYSTEMS AMENDMENT ACT

Hon. Minister: Dr Nkosazana Dlamini Zuma

On Friday 19 August 2022,

President Cyril Ramaphosa signed into law the Local Government: Municipal Systems Amendment Bill of 2022, as part of building the capacity of the state at the level of government that has the most immediate impact on the way communities live.

The law should go a long way towards improving the way local government is organised and administered as

a professional and capable tier of government – something that many had been waiting for.

The new amended law was therefore widely welcomed by organisations and leaders, including Cooperative Governance and Traditional Affairs (CoGTA) Minister, Dr Nkosazana Dlamini Zuma. It is seen as part of a suite of legislation that is designed to ensure effective and efficient functioning municipalities, and a professional local-level public administration.

So, what changes under the new law? Before unpacking it, let’s briefly look back at the original legislation regulating local government and municipal systems. The Constitution of South Africa always envisaged a dynamic local government system that would provide democratic and accountable government for local communities as well as the provision of services to communities in a sustainable manner. Key elements would be the promotion of social and economic development, a safe and healthy living

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environment, and the active involvement of communities and community organisations in matters of local government.

Part of a series of municipal laws

The 2022 amended law is based on and amends in certain parts the original Local Government: Municipal Systems Act 32 of 2000. This Act formed part of a series of legislation that aimed to empower local government to fulfil its constitutional objectives and obligations. In 1998 the government issued a Local Government White Paper, which outlined a policy framework for local government. Later that year government passed the Municipal Demarcation Act, which enabled the re-demarcation of municipal boundaries; and the Municipal Structures Act, which defined the structures of local government.

The Municipal Systems Act was passed in 2000 to complement these pieces of legislation. It sought to regulate key municipal organisational, planning, participatory and service delivery systems. The Municipal Financial Management Bill, which regulates municipal financial matters, completed the suite of laws in the local government sphere. Together, they provided a framework for a democratic, accountable and developmental local government system, as envisaged by the Constitution. Over the years various amendments were made to the Municipal Systems Act 32 of 2000 and concurrent legislation, but none arguably as important as the latest amendments.

In a statement issued by The Presidency, President Ramaphosa said the legal provisions of the new law were directed at improving the capacity and ethical standards of local government through, among others, the way senior appointments are made and by preventing high-ranking officials from holding political office in political parties. The law also enables municipalities to conduct recruitment searches nationally, to widen the pool of talent they can attract.

The President views this as part of building the capacity of the state at the level of government that has the most immediate

impact on the way communities live. According to the statement, the new legislation is an important element of turning around the performance of local government, preventing the abuse of public resources and stamping out the sheltering of officials who move from municipality to municipality following wrongdoing.

Far-reaching interventions

Among its far-reaching interventions, the new legislation provides for the Minister of Cooperative Governance and Traditional Affairs to make regulations relating to the duties, remuneration, benefits and other terms and conditions of employment of municipal managers and managers directly accountable to municipal managers. The law requires that a vacant post of municipal manager be advertised nationally to attract as wide as possible a pool of candidates. A person may be selected for appointment as municipal manager only from this pool of candidates.

If the pool of candidates is insufficient, the municipal council may re-advertise the post. Provision is, however, made for the Minister to exempt a municipal council from these strict appointment requirements if the municipal council is unable to attract a suitable candidate, which may happen especially in the rural areas.

The legislative amendments bar municipal managers and managers directly accountable to municipal managers from holding political office in political parties. Political office refers to the position of chairperson, deputy chairperson, secretary, deputy secretary or treasurer of a political party nationally or in any province, region or other area in which the party operates. Other political rights of senior managers are unaffected by the amendment, and they remain entitled to enjoy and exercise these rights freely.

The law now also directs that any staff member of any municipality who has been dismissed for misconduct may only be re-employed in any municipality after the expiry of a prescribed period. A staff member dismissed for financial misconduct contemplated in the

Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003), which includes corruption or fraud, may not be re-employed for a period of five years.

Municipalities are now required to maintain a record regarding the disciplinary proceedings of staff members dismissed for misconduct and forward it to the provincial Member of the Executive Council for Local Government, who must forward it to the Minister to keep and make available to municipalities as prescribed.

President Cyril Ramaphosa

In The Presidency’s statement, President Ramaphosa expressed his appreciation to the significant numbers of stakeholders, including individuals, who participated in the public consultation process on this legislation.

The President said: “The amendments passed by Parliament show that the concerns of communities have been heard and been acted upon. A capable, ethical state requires a strong foundation at local level, and the new law will go a long way to building communities’ confidence in local government and enabling stronger partnerships and cooperation between municipalities and the communities they serve.”

In welcoming the enactment of the new law, Minister Dlamini-Zuma called on all stakeholders to support municipalities and ensure that the Act is implemented fully. •