18 minute read
Overview of Local Government in South Africa
South Africa is a constitutional democracy with a threetier system of government and an independent judiciary. The powers of the lawmakers (legislative authorities), government (executive authorities) and courts (judicial authorities) are separate from one another.
Government consists of national, provincial and local spheres. The national, provincial and local levels of government all have legislative and executive authority in their own spheres. It is a stated intention in the Constitution that the country should be run on a system of cooperative governance. The three spheres of government are defined in the Constitution as ‘distinctive, interdependent and interrelated’.
In terms of Chapter 7 of the Constitution of South Africa, the local sphere of government is made up of municipalities, which form the lowest formal level of democratically elected government in South Africa. A municipality has the right to govern, on its own initiative, the local government affairs of its community, subject to national and provincial legislation. The executive and legislative authority of a municipality is vested in its Municipal Council.
The objects of local government are to: • provide democratic and accountable government for local communities •ensure the provision of services to communities in a sustainable manner • promote social and economic development • promote a safe and healthy environment • encourage the involvement of communities and community organisations in matters of local government.
While Chapter 7 of the Constitution provides the foundation for the establishment of municipalities, various Acts of Parliament have further defined these municipal structures since the inception of the current constitution, the most important of these being the: • Intergovernmental Relations Framework Act •Local Government: Municipal Demarcation Act •Local Government: Municipal Electoral Act •Local Government: Municipal Finance Management Act •Local Government: Municipal Property Rates Act •Local Government: Municipal Structures Act •Local Government: Municipal Systems Act • Municipal Fiscal Powers and Functions Act.
There are three kinds of municipalities in South Africa, metropolitan, local and district municipalities (also known as Category A, B and C municipalities).
Metropolitan municipalities have been established to administer South Africa’s most urbanised areas. Metropolitan municipalities have exclusive municipal executive and legislative authority in their respective areas. There are eight metropolitan municipalities in South Africa: • Buffalo City Metropolitan Municipality •City of Cape Town Metropolitan Municipality •City of Ekurhuleni Metropolitan Municipality •City of Johannesburg Metropolitan Municipality •City of Tshwane Metropolitan Municipality • eThekwini Metropolitan Municipality • Mangaung Metropolitan Municipality •Nelson Mandela Bay Metropolitan Municipality.
The remainder of South Africa’s territory is administered by 44 district municipalities (also known as Category C municipalities). Each district municipality is further subdivided into various smaller local municipalities (also known as Category B municipalities). As an example, the territory administered by the Sedibeng District Municipality encompasses the Emfuleni, Lesedi and Midvaal Local Municipalities. District and local municipalities share legislative and executive authority in respect of their commonly administered areas. District councils are primarily responsible for capacity building and district-wide planning.
There are a total of 257 municipalities in South Africa, comprising eight metropolitan, 44 district and 205 local municipalities. A number of significant demarcation changes became effective after the 2016 local government elections. The demarcation changes reduced the number of local municipalities from 226 to 205 and the total number of municipalities in South Africa from 278 to 257.
The political management of municipalities is made up of an elected Municipal Council. The term of a Municipal Council may not be more than five years. The Municipal Council makes decisions on exercising its powers and performing its functions, including electing its office bearers, as well as appointing its executive and other committees. The Municipal Council employs the executive management and personnel that are necessary for the effective performance of its functions.
LOCAL GOVERNMENT ELECTIONS
Local government elections are held once every five years. The most recent municipal elections were held on 1 November 2021. All South African citizens over the age of 18 are eligible to vote. The Constitution places all elections and referendums in the country in all three spheres of government under the control of the Independent Electoral Commission (IEC), established in terms of the Electoral Commission Act.
The obligations of the IEC are to: •manage elections of national, provincial and municipal legislative bodies •ensure that those elections are free and fair • declare the results of those elections • compile and maintain a voters’ roll.
The duties of the IEC are to: • compile and maintain a register of parties • undertake and promote research into electoral matters •develop and promote the development of electoral expertise and technology in all spheres of government • continuously review electoral laws and proposed electoral laws, and make recommendations • promote voter education
Nelson Mandela Bridge at night with Johannesburg city skyline, in Gauteng, South Africa
Photo credit: Arnold.Petersen/Shutterstock.com
• declare the results of elections for national, provincial and municipal legislative bodies within seven days • appoint appropriate public administrations in any sphere of government to conduct elections.
The Department of Cooperative Governance and Traditional Affairs is responsible for facilitating cooperative governance, to support all spheres of government and to assist the institution of traditional leadership to transform itself into a strategic partner of government in the development of communities.
CoGTA oversees the implementation of the following legislation applicable to local government.
The Local Government: Municipal Property Rates Act regulates the power of a municipality to impose property rates, excludes certain properties from rating in the national interest, provides fair and equitable valuation methods of properties, and for municipalities to implement a transparent and fair system of exemptions, reductions and rebates through their rating policies.
The Local Government: Municipal Finance Management Act is aimed at modernising municipal budgeting and fi nancial management. It also introduces a governance framework for separate entities created by municipalities. The Act is a critical element in the overall transformation of local government in South Africa. It fosters transparency through budget and reporting requirements.
The Local Government: Municipal Systems Act establishes a framework for planning, performance-management systems, effective use of resources, and organisational change in a business context. The Act also establishes a system for municipalities to report on their performance, and provides residents with an opportunity to compare this performance with that of other municipalities. It also regulates public-private partnerships. The Act allows municipalities signifi cant power to corporatise their services, to establish utilities for service delivery, or to enter into partnerships with other service providers. The Act provides for the adoption of a credit-control policy for municipalities, which will provide for the termination of services in the event of non-payment. Municipalities have the power to pass by-laws to implement the policy.
The Local Government: Municipal Systems Amendment Act is aimed at professionalising local government for improved service delivery and performance management, while also instilling a people-centred local government mindset in municipalities. A key objective of the Act is to progressively align the systems of municipal administration and human resource management with those of the Public Service in national and provincial government.
The aim of the Act, among other things, is to: • professionalise local government by ensuring that the administrative apparatus of municipalities is staffed by appropriately qualifi ed and competent persons to improve service delivery • require that employment contracts and performance agreements of municipal managers (and managers directly accountable to municipal managers) are consistent with the uniform systems and procedures set nationally • extend the Minister’s regulatory power to make regulations relating to macro-benefi ts such as medical aid and pension benefi ts after consultation with the ministers of health and fi nance.
The Local Government: Municipal Structures Act provides for ward committees whose tasks, among other things, are to: • prepare, implement and review integrated development plans (IDPs) • establish, implement and review municipalities’ performance- management systems • monitor and review municipalities’ performances • prepare municipalities’ budgets • participate in decisions about the provision of municipal services • communicate and disseminate information on governance matters. In fulfi lling its role with regards to local government, CoGTA is pursuing the following strategic programmes:
THE INTEGRATED URBAN DEVELOPMENT FRAMEWORK (IUDF) The IUDF seeks to foster a shared understanding across government and society about how best to manage urbanisation and achieve the goals of economic development, job creation and improved living conditions.
The IUDF is a policy framework on how the South African urban system can be reorganised so that cities and towns become more inclusive, resource effi cient, and good places to live, work, shop and play in, as per the vision outlined in the National Development Plan.
(Continued on page 19)
African woman cooking mielie pap maize porridge on a side street in urban Soweto
Photo credit: Sunshine Seeds/Shutterstock.com
(Continued from page 17) DISTRICT DEVELOPMENT MODEL (DDM) The DDM was adopted by Cabinet in August 2019. The DDM is an operational model for improving cooperative governance aimed at building a capable, ethical developmental State. It embodies an approach by which the three spheres of government and state entities work in unison in an impact-oriented way, and where there is higher performance and accountability for coherent service delivery and development outcomes. It is a method of government operating in unison focusing on the municipal district and metropolitan spaces as the impact areas of joint planning, budgeting, and implementation.
Informed by the National Development Plan and the IUDF, and other government policies, legislations, and previous similar programmes, the DDM seeks to ensure maximum coordination and cooperation among all three spheres of government. The DDM will be implemented through a collaborative process to develop one plan for all district and metropolitan municipalities, which will be further synchronized with the Integrated Development Plans (IDPs) of municipalities. The DDM has been piloted in several district and metropolitan municipalities.
INTEGRATED DEVELOPMENT PLANS (IDP) In terms of the Local Government: Municipal Systems Act, all municipalities are required to prepare and formally adopt IDPs. Integrated development planning is a process by which municipalities prepare fi ve-year strategic plans that are reviewed annually in consultation with communities and other stakeholders. The aim is to achieve service delivery and development goals in municipal areas in an effective and sustainable way.
IDPs must, among other things, include: • the municipal council’s vision for the long-term development of the municipality • an assessment of the existing level of development in the municipality and an identifi cation of communities which do not have access to basic municipal services • the council’s development priorities and objectives, including its local economic development aims and its internal transformation needs • the council’s development strategies, which must be aligned with any national or provincial sectoral plans and planning requirements • a spatial development framework • the council’s operational strategies • applicable disaster management plans • a fi nancial plan and budget projection for the next three years • key performance indicators and performance targets.
LOCAL ECONOMIC DEVELOPMENT (LED) LED is an approach towards economic development that allows and encourages local people to work together to achieve sustainable economic growth and development, thereby bringing economic benefi ts and improved quality of life for all residents in a local municipal area.
LED is intended to maximise the economic potential of municipal localities and enhance the resilience of macro-economic growth through increased local economic growth, employment creation and development initiatives within the context of sustainable development. The ‘local’ in economic development points to the fact that the political jurisdiction at local level is often the most appropriate place for economic intervention, as it carries alongside it the accountability and legitimacy of a democratically elected body.
LED programmes provide support in the following areas: • developing and reviewing national policy, strategy and guidelines on LED • providing direct and hands-on support to provincial and local government • managing the LED Fund • managing and providing technical support to Nodal Economic Development Planning • facilitating, coordinating and monitoring donor programmes • assisting LED capacity-building processes.
Through these interventions and resources, local role-players and interest groups are mobilised for the sake of achieving economic growth, and with the aim of creating jobs to reduce poverty.
COMMUNITY WORK PROGRAMME (CWP) The CWP aims to provide a job safety net for unemployed people of working age. It provides a bridging opportunity for unemployed youth and others who are actively looking for employment opportunities.
(Continued on page 21)
(Continued from page 19)
Programme participants do community work, thereby contributing to improvements that benefit all community members.
The purpose of the CWP is to: • provide an employment safety net – the CWP recognises that sustainable employment solutions will take time, particularly in reaching marginal economic areas • contribute to the development of public assets and services in poor communities • strengthen community development approaches • strengthen the economic ‘agency’ of people in poor areas, providing work experience, enhancing dignity and promoting social and economic inclusion.
MUNICIPAL INFRASTRUCTURE GRANT (MIG) The Municipal Infrastructure Grant is aimed at eradicating municipal infrastructure backlogs in poor communities to ensure the provision of basic services such as water, sanitation, roads and community lighting. CoGTA is responsible for managing and transferring the MIG and provides support to provinces and municipalities on implementing MIG projects.
MUNICIPAL SUPPORT AGENT (MISA) MISA is a national government component constituted in terms of the Public Service Act, accountable to the Minister of Cooperative Governance and Traditional Affairs. It is an integral part of CoGTA’s programme towards improving municipal infrastructure provisioning and maintenance for accelerated service delivery.
MISA is mandated to: • support municipalities to conduct effective infrastructure planning to achieve sustainable service delivery • support and assist municipalities with the implementation of infrastructure projects as determined by their municipal
Integrated Development Plans (IDPs) • support and assist municipalities with the operation and maintenance of municipal infrastructure •build the capacity of municipalities to undertake effective planning, delivery, operations and management of municipal infrastructure.
MISA interventions are executed through the provision of technical capacity deployments (engineers, town planners, project managers, and other built environment fields) in various municipalities. The support is managed at provincial level with the assistance of provincial programme managers, who are also responsible for stakeholder management and coordination. In future, the deployment of support will be managed at district-level, to ensure that the Cabinet resolution to prioritise struggling districts is implemented.
NATIONAL AND PROVINCIAL TREASURIES
The National Treasury is comprised of the Minister of Finance, together with the national department or departments responsible for financial and fiscal matters. The Minister is the head of the National Treasury.
The Constitution confers extensive powers on national government to determine the financial management framework of all organs of state, in all spheres of government. National government must, through national legislation, determine uniform treasury norms and standards. The National Treasury is further expected to monitor and enforce these norms. The National Treasury, therefore, not only implements the budget of the national government, but also plays a financial oversight role over other organs of state in all spheres of government. The National Treasury, together with the provincial treasuries, are responsible for administering the Municipal Finance Management Act (the MFMA), which is the central piece of legislation regulating all financial matters of municipalities.
MUNICIPAL FINANCE MANAGEMENT ACT (MFMA)
The Municipal Finance Management Act aims to modernise budget and financial management practices in municipalities in order to maximise the capacity of the municipalities to deliver services to all their residents, customers and users. It also gives effect to the principle of transparency as required by sections 215 and 216 of the Constitution. The MFMA must be read together with three other critical pieces of legislation: the Municipal Structures Act, the Municipal Systems Act and the Municipal Property Rates Act.
The object of the MFMA is to secure sound and sustainable management of the fiscal and financial affairs of municipalities and municipal entities by establishing norms and standards and other requirements for: • ensuring transparency, accountability and appropriate lines of responsibility •the management of revenues, expenditures, assets and liabilities • budgetary and financial planning processes • borrowing • the handling of financial problems in municipalities •supply chain management •other financial matters.
In terms of the MFMA, the National Treasury may, in respect of any municipality or municipal entity: • monitor their budgets and the implementation of their budgets, including their expenditure, revenue collection and borrowing • investigate any system of financial management and internal control and recommend improvements •take appropriate steps if a municipality or municipal entity commits a breach of the PGMA, including the stopping of funds to a municipality if it commits a serious or persistent material breach of applicable legislation and regulations •take any other appropriate steps necessary to perform its functions effectively.
The Provincial Treasuries are tasked with: • monitoring compliance with the MFMA, the preparation of budgets, the monthly outcome of those budgets and the submission of reports • assisting municipalities in the preparation of their budgets • exercising any powers and performing any duties delegated by the National Treasury •taking appropriate steps if a municipality or municipal entity commits a breach of the MFMA.
FUNDING AND DIVISION OF REVENUE
Local government plays a critical and complementary role in eliminating poverty and reducing inequality. Municipalities deliver basic services such as water, electricity, sanitation and solid waste removal. Municipalities also manage extensive public road networks, and support or provide public transport services. They also directly manage aspects of planning and regulatory systems that control land use, influence infrastructure roll-out and facilitate economic activity.
The Constitution requires a division of nationally raised resources between national, provincial and local government. This is done through the Division of Revenue Bill, which is tabled with the national budget.
Constitutional Court of South Africa on Constitution Hill in Johannesburg, Gauteng
Photo credit: Cezary Wojtkowski/Shutterstock.com
(Continued from page 21)
Transfers to local government are made through the equitable share and conditional grants. The equitable shares are determined by formulas that take into account demographic and developmental factors. Conditional grants are designed to achieve specifi c objectives, and municipalities must fulfi l certain conditions to receive them.
Local government raises revenue mainly from user charges, rates and taxes. Only a quarter of its overall spending is fi nanced from the National Revenue Fund through the division of revenue. However, poor and rural municipalities rely heavily on national transfers because they have much lower tax bases than large cities. Consequently, government directs higher per capita transfers to poor and rural municipalities, while working with urban municipalities to leverage their own resources to increase investment in infrastructure.
In terms of the National Treasury’s Budget Review 2021, transfers to municipalities will account for 8.8% (or R138.5 billion) of nationally raised revenue for the 2020/21 budget year.
AUDITOR-GENERAL SOUTH AFRICA (AGSA)
The Auditor-General of South Africa is the supreme audit institution of South Africa. It is the only institution that, by law, has to audit and report on how the government is spending the South African taxpayers’ money.
Although AGSA audits the public sector, it is not part of it. AGSA is a ‘Chapter 9’ institution, meaning its mandate is outlined in Chapter 9 of the Constitution. This ensures its independence. It is also not bound by any public service rules and regulations.
AGSA annually produces audit reports on all government departments, public entities, municipalities and public institutions. Over and above these entity-specifi c reports, the audit outcomes are analysed in general reports that cover both the Public Finance Management Act and MFMA cycles. In addition, reports on discretionary audits, performance audits, and other special audits are also produced.
MUNICIPAL DEMARCATION BOARD
The Municipal Demarcation Board is an independent authority responsible for the determination of municipal boundaries. The Board’s status as an independent authority is also protected by the Local Government: Municipal Demarcation Act and various judgements by the Constitutional Court. In addition to the determinations and redeterminations of municipal boundaries, the Board is also mandated by legislation to declare the district management areas, to delimit wards for local elections, and to assess the capacity of municipalities to perform their functions.
Salga is a listed public entity, established in terms of Section 21 of the Companies Act, 1973 and recognised by the Minister of Cooperative Governance and Traditional Affairs in terms of the Organised Local Government Act. Salga represents local government on numerous intergovernmental forums such as the PCC, Minister and MECs Forum, the Budget Forum, the NCOP, and the Financial and Fiscal Commission.
Salga aims, among other things, to: • transform local government to enable it to fulfi l its developmental role • enhance the role of provincial local government associations as provincial representatives and consultative bodies on local government • raise the profi le of local government • ensure full participation of women • act as the national employers’ organisation for municipal and provincial member employers • provide legal assistance to its members.
Salga is funded through a combination of sources, including a national government grant, membership fees from provincial and local government associations that are voluntary members, and donations from the donor community for specifi c projects.
Sources: South Africa Yearbook, published annually by the Department: Government Communication and Information System (GCIS), available at gcis.gov.za Budget Review, published annually by the National Treasury, available at treasury.gov.za agsa.co.za cogta.gov.za elections.org.za
