2018/19 ANNUAL PERFORMANCE PLAN MEDIUM TERM …

www.salga.org.za

2018/19

ANNUAL PERFORMANCE

PLAN

MEDIUM TERM

EXPENDITURE FRAMEWORK

PORTFOLIO COMMITTEE ON COGTA17 APRIL 2018

www.salga.org.za

PRESENTATION OUTLINE

2

1. Background

2. Update on matters arising from previous engagements

3. 2017/18 Performance per Mandate

4. 2018/19 Deliverables

5. Financing the Plan

3

BACKGROUND

3

Embarking on the Task of Transforming Local Government

4

Objects of Local Government

1. Provide democratic and accountable government for local

communities;

2. Ensure the provision of services to communities in a sustainable

manner;

3. Promote social and economic development;

4. Promote a safe and healthy environment; and

5. Encourage involvement of communities & community

organisations in matters of LG

A key mission was to build a system of developmental

local government that is:

Caring

Accountable

Responsive

Innovative

Participatory

Capable

Resilient

Viable

Development oriented

Service delivery oriented

SALGA is expected to play a leading supportive

role in the wholesale transformation of local

government to be developmentally oriented

(White Paper on LG 1998)

5

Embarking on the Task of Transforming Local Government

SALGA is expected to play a leading

role in the transformation of LG to be

developmentally oriented

SALGA has potential to make a strong

contribution to the development of

munic in the country, through eg:

• Provision of specialised services

to strengthen capacity of LG

• Research and information

dissemination;

• Facilitate shared learning

between municipalities;

• Human resource development;

and Cllr training [Leadership

Development]

For the purposes of effective cooperative

government, OLG must:

• develop common approaches for LG as a

distinct sphere of govt;

• enhance co-operation, mutual assistance

and sharing of resources among

municipalities;

• find solutions for problems relating to LG

generally; and

• facilitate co-operative govt. & IGR.

Further expansion of SALGA’s obligations

through other legislation

• IGRF Act, Water Act, Demarcation Act, etc

Objects of Local Government

1. to provide democratic and accountable government for local communities;

2. to ensure the provision of services to communities in a sustainable manner;

3. to promote social and economic development;

4. to promote a safe and healthy environment; and

5. to encourage the involvement of communities and community organisations in the matters of local govt.

6

MATTERS ARISING FROM

PREVIOUS DISCUSSIONS

6

www.salga.org.za

ISSUES FROM THE PREVIOUS SESSION

CAPACITY BUILDING PRODUCTS AND SERVICES?

The LGSETA is the primary Seta for the sector and SALGA has 5 representatives on the LGSETA board. SALGA’s programmes as per the Local Government Capacity Building Funding Plan 2017-2022 and in line with the SALGA overall Strategy for the period 2017-2022.

PROGRAMME

NAME

PROGRAMME DESCRIPTION FUNDING ALLOCATION

FROM LGSETA

STATUS UPDATE

ICIP (generic CIP) ICIP is a sector accredited programme coordinated by SALGA and

delivered in collaboration with COGTA; National Treasury, the National

School of Government, LGSETA and a range of stakeholders within and

outside of government. ICIP is anchored on the 5 pillars of the Back to

Basics approach, multi‐disciplinary in its implementation approach,

aspires to respond to the National Capacity Building Framework (NCBF)

imperatives and represents the foundational learning layer of a Macro

Leadership Learning Pathway for Cllr capacity building that is set out for

the full duration of the term of Municipal Councils (2016‐2021).

R10 mil A total of 8174 councillors

and 243 traditional

leaders were trained

during Phase One of

Generic CIP;

A total of 8078

certificates of

attendance were issued.

Portfolio based

inductions - A total of

2779 councillors have

been trained nationally

www.salga.org.za

CAPACITY BUILDING PRODUCTS AND SERVICES

PROGRAMME

NAME

PROGRAMME DESCRIPTION FUNDING ALLOCATION

FROM LGSETA

STATUS UPDATE

Leadership in

Municipal

Governance

Programme

(LMGP)

The Leadership in Municipal Governance Programme is a unique

‘professional training and development programme’ established

in response to the articulated and inherent needs of local

government political leaders who exercise ‘executive’ and

‘oversight’ responsibilities in the development of their localities.

The initiative is structured a s a formalised Certified Programme,

but delivered as a ‘support intervention’ that facilitates the

transfer of knowledge and theory into active practices within the

structures of local municipal institutions.

R7 695 000.00 A total of 130 out 270

delegates have been

trained to date

nationally. Training is still

in progress

Municipal Leaders

Media and

Stakeholder

Engagement

Programme

(MSEP)

The objective of the Media and Stakeholder Engagement

Programme for Leaders Programme is to ensure that Elected

Leaders and Municipal Officials perform their roles of external

relations, community and stakeholder engagement optimally. The

programme also aims to use critical communications and media

management tools to enhance and promote public

participation.

R 6 650 000.00 A total of 412 out 1400 delegates have been trained. This project is work in progress

www.salga.org.za

PROGRAMME

NAME

PROGRAMMEDESCRIPTION FUNDING

ALLOCATIO

N FROM

LGSETA

STATUS UPDATE

LocalLinks

Leadership

(Seminar

Styled)

Conversations

(LLLC)

The LocalLinksLeadership

Conversationscreates

decentralized, small group

learning conversations

between Executive Leaders

with aim of promoting peer

learning and exchange.These

leadershipconversationswill

be provincially based and will

take the form of facilitated

communities of practice.

R604 800

.00

The conceptual

frameworkof this

programme is being re-

examinedto create an

alignment betweenthe

SALGAStrategicGoal

Areas, the delivery

methodology aswellas

securing th i rd party

collaborationand

delivery partners.

Municipal

Leadership

Competency

Assessment

Centre

(MLCAC)

The MLCAC is a tailored

competency assessment

centre platform established

by SALGA with the financial

support of the LGSETA.The

MLCAC provides

competencyassessment

servicesto municipal

executives and political

heads.

R5m The centre has already

beenestablishedand

100candidatesfor

Senior Managers

positions havebenefited.

Based on our

monitoring mechanism,

327 Senior Managers

vacancieshave been

advertisedby

municipalitiessince March

2017 –to date.

PROGRAMME NAME PROGRAMME DESCRIPTION FUNDING

ALLOCATION FROM

LGSETA

STATUS UPDATE

Local Links Leadership

(Seminar Styled)

Conversations (LLLC)

The Local Links Leadership Conversations

creates decentralized, small group learning

conversations between Executive Leaders

with aim of promoting peer learning and

exchange. These leadership conversations

will be provincially based and will take the

form of facilitated communities of practice.

R604 800 .00 The conceptual framework of this

programme is being re-examined to

create an alignment between the

SALGA Strategic Goal Areas, the

delivery methodology as well as

securing third party collaboration

and delivery partners.

Municipal Leadership

Competency Assessment

Centre (MLCAC)

The MLCAC is a tailored competency

assessment centre platform established by

SALGA with the financial support of the

LGSETA. The MLCAC provides competency

assessment services to municipal executives

and political heads.

R5m A separate feedback will be

provided on this project

CAPACITY BUILDING PRODUCTS AND SERVICES

www.salga.org.za

PLATFORMS WHERE SALGA LEADERSHIP PARTICIPATE?

7

24

21

0

5

10

15

20

25

30

SALGA governancestructures

SALGA otherengagements

UCLG engagements

• One of SALGA’s role is to lobby,

advocate and represent

municipalities.

• SALGA’s Leadership represented

SALGA on various platforms where

SALGA was lobbying on behalf of

municipalities.

www.salga.org.za

SALGA’S APPEARANCE IN PARLIAMENT

15

5

2

0

2

4

6

8

10

12

14

16

PortfolioCommittees

SelectCommittees

StandingCommittees

• SALGA participated in joint sittings

of Parliaments where the SALGA

President addressed the house.

• SALGA through various NEC

members participated in the budget

policy speeches

• The President attended Joint

Programming Committee Meetings

• SALGA participated in NCOP major

activities like plenary debates,

annual review sessions etc.

• Attended ADHOC Committees and

responded to Bills

12

PERFORMANCE PER

MANDATE

12

13

Lobby, Advocate & Represent

Employer Body

Capacity Building

Support & Advice

Strategic Profiling

Knowledge & Information

Sharing

SALGA identified the regulations for small scale

embedded generation as well as it licensing as policies

that are an impediment to the service delivery of Electricity

and Energy. Through SALGA lobbying and advocating, the

new licensing regulations which allow small scale of

renewable energy for municipalities were approved.

SALGA hosted a Summit to have a wider conversation

around the policies impeding the operations of

municipalities in the energy space. Recommendations

were made around the institutional reforms that will be

followed through as part of the summit declaration and the

plan of action.

The National Department of Human Settlements initiated a

process of amending the Prevention of Illegal Eviction

from and Unlawful Occupation of Land Amendment (PIE)

Act, 1998.

SALGA consulted municipalities and lobby NDHS to

amend the Act and the draft Amendment Bill

14


Employer Body

Capacity Building

Support & Advice

Strategic Profiling

Knowledge &

Information Sharing

The national legislative, policy and fiscal regime does not treat

environmental management as a municipal service and as such,

municipalities are unable to appropriately budget for and measure

performance of the functions.

Developed a position paper on the Legislative Framework for

Environmental Management, which will assist LG to clarify the

responsibilities with regards to environment function. In addition,

SALGA developed a policy position paper on Funding requirements

for Environmental Performance, with the aim of influencing the fiscal

regime to make provision for funding instruments for environmental

performance areas.

Municipal debt was profiled and proposals on how to deal with the

historical debt owed to municipalities was presented and lobbied for in

Parliament to the Select Committee, Presidential Coordinating

Committee and various SALGA Governance platforms.

SALGA continued its lobbying and participation in the National

Intergovernmental Task Team sessions to address challenges faced

by organs of state including sector departments, national and

provincial, in settling their debts owed to municipalities. Budgetary

constraints as well as procedural aspects seen as challenges were

discussed.

15


Employer Body

Capacity Building

Support & Advice

Strategic Profiling


Sharing

The 2017/18 financial year saw the

development and approval of the

SALGA Collective Bargaining Strategy

for 2018/19 and Beyond for negotiations

at the South African Local Government

Bargaining Council (SALGBC).

Representations provided to member

municipalities across provinces on

labour related matters as follows:

107 disciplinary hearings,

82 conciliations and

183 arbitrations.

Pension Fund Restructuring Collective

Agreement Negotiated at SALGBC.

Awareness creation on the Local

Government Service Charter facilitated

in municipalities across provinces.

16


Employer Body

Capacity Building

Support & Advice

Strategic Profiling

Knowledge &

Information Sharing

Through the SALGA Centre for Leadership and

Governance (SCLG) 4743 councilors and senior

municipal officials benefited in the training programmes

as follows:

• 164 beneficiaries in the Senior Managers Induction

Programme (SMIP),

• 131 beneficiaries in the Leadership in Municipal

Governance (LMG) Programme,

• 480 beneficiaries in the Municipal Leaders Media

and Stakeholder Engagement Programme

(MSEP),

• 2933 beneficiaries in the Portfolio Based

Councilor Induction Programme

• 279 beneficiaries in the Councilor Induction

Programme (CIP)

• 190 beneficiaries in the ICIP Accredited Facilitator

Programme.

• 277 beneficiaries in the Annual Local Government

Performance Management Seminar and

• 273 in the Annual Local Government Labour Law

Seminar

• 16 beneficiaries in the Accredited Performance

Management Support Programme.

17


Employer Body

Capacity Building Support &

Advice

Strategic Profiling


Sharing

1. SALGA conducted a review of the register published by the

Minister of Labour in accordance with section 41 of the EEA,

in order to ascertain the level of compliance by member

municipalities. 208 (81%) municipalities have reported.

2. Competency assessments of 309 candidates (senior

managers in municipalities) assessed through the Municipal

Leadership Competency Assessment Centre (MLCAC) in the

period under review.

3. Thirty Six (36) municipalities were provided with customised

support to institutionalise and cascade performance

management system.

4. Support was provided to 43 municipalities on MASP during the

2017/18 financial year. Of the 43 municipalities supported 18

were in the red zone. 7 municipalities supported progressed in

terms of their audit outcomes. The 7 municipalities that

progressed were:

Inxuba Yethemba (EC),

Sundays River Valley (EC),

Emalahleni (MP),

Ga-Segonyane (NC),

Mafikeng (NW),

Mpofna (KZN), and

Prince Albert (WC).

18

Lobby, Advocate

& Represent

Employer Body

Capacity Building

Support & Advice

Strategic Profiling

Knowledge &

Information Sharing

1. During the year under review, over 50 media

releases and media advisories developed

and disseminated to the media. These

generated media coverage, increasing

visibility for SALGA and the sector2. A 22nd edition of the Voice was published 3. SALGA specific coverage generated 289

media mentions. This was broken down into

(Print: 116; Broadcast: 26; Online: 147). 4. Convened 9 PMAs in all provinces where the

2016 Annual Report, 2018/19 Annual Performance Plan and Budget were presented and approved

5. SALGA specific coverage generated 212

media mentions in March 2018. This was

broken down into (Print: 62; Broadcast: 30; Online: 120).

www.salga.org.za

ORGANISATIONAL STRESS PENDULUM

(2007 – 2017)

2015/16

Clean Audit

Opinion

2005/06Disclaimer of Audit

Opinion


Opinion

2007/08Qualified Audit

Opinion


Opinion

2009/10Unqualified Audit Opinion

2014/15Clean Audit

Opinion



The last five years

have seen SALGA

grow into a well

governed,

accountable, high

performance

organisation

2016/17

Clean Audit

Opinion

2013/14Clean Audit

Opinion

2012/13Clean Audit

Opinion

20

2017-2018

DELIVERABLES

20

www.salga.org.za

• Since establishment in 1996, SALGA has transformed through a series of milestones (Journey of a thousand hills)

• Based on OLGA, OLG was established as nine different provincial structures

• From establishment SALGA began participating on adhoc basis in development of LG policy & regulatory framework

• The period up to 2007 was highlighted by coordinating the fragmented voice of LG into one voice

• 2007 to 2012 saw the consolidation of the organisation as a unitary structure that plans, operates and reports as one

• 2012 to 2017 saw the organisation grow into a high performance organisation & consistently achieving clean audits

• 2017 to 2022 must translate this high performance and good governance into meaningful impact in the sector

1996

SALGA Established

2000

Birth of Democratic Local Government

2012 - 2017

High performance and well governed

1996 - 2000

Base law and policy for developmental LG

2007 - 2012

Consolidation to a well oiled machine

• Better outcomes in munics

• High performing munics

• Restored image & credibility

• Confidence of communities

Caring

Accountable

Responsive

Innovative

Participatory

Capable

Resilient

Viable

Development oriented

Service delivery oriented

SALGA National

SALGAProvinces

STRATEGIC GOALS

1) Sustainable, Inclusive

Economic Growth

Underpinned by

Spatial Transformation

2) Good Governance &

Resilient Municipal

Institutions

3) Financial Sustainability

of Local Government &

Greater Fiscal Equity ANNUAL REPORT

O-PMS (APP

BudgetI-PMS

Risk

Capacity Building

INSPIRING SERVICE DELIVERY

…

…

SALGA MANDATES

1. Representation

2. Employer Body

3. Capacity Building

4. Support and Advisory Role

5. Profiling Role

6. LG Knowledge Hub

SALGA 5 YEAR STRATEGIC PLAN

2017-2022

INTERNATIONAL CONTEXT

1. SDGs

2. New Urban Agenda

3. Framework for Disaster Risk

Management

4. Accord for Climate Change

5. Accord for Infrastructure Finance

STRATEGIC ENABLERS

1) Information and

Communication Technology

2) Data Intelligence

3) Innovation

4) Research and Knowledge

Management

5) Effective and Efficient

Administration

6) Marketing and

Communication

7) Strategic Partnerships

Dynamic ExcellenceResponsive Innovative

NATIONAL CONTEXT

1. NDP

2. MTSF

3. B2B Approach & IUDF

4. Electoral Mandate (2016)

23

GOAL 1:

Sustainable Inclusive Economic Growth underpinned by Spatial Transformation

23

www.salga.org.za 24

STRATEGIC GOAL 1:Sustainable, Inclusive Economic Growth underpinned by Spatial Transformation

To implement a sustainable

Urban Development Programme

To support regional

economic strategies and effective Land

Use Management approaches as

drivers of economies of

scale and social cohesion

To promote high quality and reliable

service provision and infrastructure

investment

To strengthen the role of

local government

in community development

and social cohesion

Objective 2Objective 1 Objective 3 Objective 4

Context

The main thrust

is to foster

integrated and

sustainable

urban

development

and

management,

regional

economic

growth inclusive

of rural

development

and bring about

social cohesion

Linkages to

Global and national

• National

Development

Plan

• Integrated

Urban

Development

Framework

• Sustainable

Development

Goals

• AMICAAL

Africa goals

• CEDAW

• SADC Protocol

on Gender and

Development

www.salga.org.za

FLAGSHIP PROJECTS

25

Goal 1:

Sustainable Inclusive Economic Growth

underpinned by Spatial Transformation

Facilitate effective

management of

space through: • SPLUMA Support,

• Initiation of New

Generation LUMS,

• Research and

support for Urban

land release

• Rural densification

• Development of a

Spatial

transformation

index

Support the

regeneration of

small towns and

other vulnerable

economies through

regional

development

approach

Facilitate and

guide social

cohesion

programmes

in

municipalities

Lobby for

broadband to

become a fifth

utility

Drive a

campaign on

clean cities and

villages through

internal and

external options

for waste

management

www.salga.org.za

INCOME INEQUALITY VS SPATIAL INEQUALITY

26

• Eighteen years after the establishment of “Wall-to-Wall” democratic local government our municipal spaces remain

"Two-worlds" municipalities and societies. This is despite sterling progress made by municipalities in providing access

to basic services to those who were previously unserved

• This situation is not sustainable - neither for the "world" that is wealthy, prosperous, well-resourced and

internationally connected; nor for the one that is overtly asset-poor, grossly under- resourced and under-developed

www.salga.org.za 27

Outputs

1. New generation land use

management framework

developed by 31 March 2019

2. Land release framework for

cities and towns developed by

31 March 2019

3. Framework to facilitate rural

densification developed by 31

March 2019

4. SPLUMA capacity building

programmes implemented by 31

March 2019.

Activities

1. Conduct a study on new generation land use management

2. Develop a framework on new generation land use management

3. Assist municipalities in adopting the new generation land use

management framework

Activities

1. Conduct research on land release

2. Develop proposals to lobby relevant stakeholder on land release

3. Develop the land release framework for cities and towns

Activities

1. Develop rural densification framework

2. Consultation with relevant stakeholders on rural densification

3. Pilot municipalities on rural densification

Activities

1. Identify gaps on the implementation of SPLUMA

2. Develop capacity building programmes to address the identified gaps

3. Roll out of the programme to support municipalities to implement

SPLUMA

IF WE UNDERTAKE THESE ACTIVITIES…. WE WILL PRODUCE THESE

OUTPUTS….

www.salga.org.za

REGIONAL APPROACH TO SMALL TOWN REGENERATION

28

Population and socio-

economic

development

manifests differently in

various regions across

the country

The regions disregard

admin boundaries &

often include multiple

municipalities

Note the

manifestation of

vulnerabilities in the

different regions

Population Size & Growth

Unemployment & Dependency Social Vulnerability

Population Profile

www.salga.org.za

REGIONAL DEVELOPMENT

29

Socio-economic development,

linkages and mobility often

disregard administrative

boundaries and requires us to

consider regional approaches to

development

Karoo Region covers four

provinces: WC, NC, EC, FS

Gauteng City Region covers 3

metros and 2 district

municipalities. Initial boundary

extended into FS and NW

Agricultural Regions

Karoo Region

Mining Region Tourism Region

Gauteng City Region

www.salga.org.za 30

Outputs

1. Framework for the

categorisation of

regional economies

developed by 31

March 2019

Activities

1.Conduct research on mapping and

categorisation of regional economies

2.Facilitated stakeholder engagements

3.Develop framework for the categorisation of

the regional economies

4.Implement the SALGA small town

regeneration programmes including Karoo

STR initiative


OUTPUTS….

www.salga.org.za 31

Disruptive technologies are

disrupting everything we know

Connecting the state (through

inter and intra state linkages and

connecting the state to citizens

bears huge opportunities to

overhaul service delivery models

for better performance

Failure to embrace and ready

ourselves the 4th Industrial

Revolution risks poor

performance in the long run

The SA Telecommunications

market is worth over R300-billion

& expected to grow exponentially

in the next 5yrs. LG is currently

not participating in this economy

www.salga.org.za 32

Outputs

1. SALGA strategy to

lobby for broadband to

become the 5th utility

developed by 31

March 2019

Activities

1.Develop a framework for municipal broadband

delivery

2.Develop lobby strategy on broadband

3.Engage relevant stakeholders for broadband

to become 5th utility


OUTPUTS….

www.salga.org.za 33

PROBLEM STATEMENTSouth Africa is generating approximately 54 million tones of general/household waste and less that 20% is being

diverted from going to landfill sites into recycling and other initiatives. The remainder goes to the landfill sites and

illegal dumping.

.

http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=iZVNGaHwubHdzM&tbnid=AnllWVYwECUgNM:&ved=0CAUQjRw&url=http://www.intlswa.com/&ei=NN-wU4n2EonE0QXvg4H4Cw&bvm=bv.69837884,d.ZWU&psig=AFQjCNFWR5YwYbFwQTgXPaFqC1OBoZ9WSg&ust=1404186726369959

www.salga.org.za 34

Outputs

1. Research on internal

and external options

for waste

management by 31

March 2019

Activities

1.Commission research on the appropriate options

(internal/external) for the delivery of waste

management service


OUTPUTS….

www.salga.org.za 35

43 Councillors killed

between 2011 & 17 alone

Poor Human Development

Indicators including Life

Expectancy, Literacy, Quality

of Life, Purchasing Power

Parity, Inequality results in

various forms of discord

often ending in violence.

A lot of discord happens at

a localized level including at

the household level but

increasingly escalates &

aggregates at a societal

(community / municipal/

national) level resulting in

extensive loss of life, and

property

Domestic violence & child

abuse affects children

Protest for better access to

education

Protest for improved income

and purchasing power

Frustration led responses to

inadequate quality of life

1034 2 322710711182

173155191

164137152

2004 2006 2008 2010 2012 2014 2016

Violent Protest trend

(2004-2017)

www.salga.org.za 36

Outputs

1. Social Cohesion /

Community

Development

Indicators published

by 31 March 2019

Activities

1.Develop social cohesion index (Indicators)

2.Establish and support strategic partnerships

to implement social cohesion programmes

3.Implement programmes that promote

knowledge sharing on social cohesion


OUTPUTS….

www.salga.org.za 37

2018/19 GOAL 1 : OTHER DELIVERABLES

1. Benchmarking on water and other municipal services;

2. Identification and promotion of municipal trade and investment opportunities for local economic

development;

3. Enabling policy and legislative framework for infrastructure service provision;

4. Optimal institutional arrangements for sustainable infrastructure services;

5. Enabling fiscal framework for Capex and Opex of municipal infrastructure services;

6. Funding model for municipal health services;

7. Local Government response report to HIV and AIDS,TB and STI;

8. Status report on the implementation of White Papers relating to Public safety and security in LG;

9. SALGA proposals on access and inclusion of vulnerable/designated groups; and

10.SALGA proposals on Sports, Recreation, Arts, Culture and Heritage.

38

GOAL 2Good Governance and Resilient Municipal Institutions

38

www.salga.org.za 39

STRATEGIC GOAL 2Good Governance & Resilient Municipal Institutions

To strengthen oversight and accountability

and transparent leadership practices

To Modernise governance systems and

processes through the use

of digital technology and exploration of new models of interface with communities

To foster sound and productive

labour relations

To Professionalise

Local Government

Objective 2Objective 1 Objective 3 Objective 4

Context Linkages to

Global and national

Investing in

good

governance and

modernisation

of government

approaches,

strengthening

community

interface

mechanisms,

sound labour

relations and

Professionalisati

on

• National

Development

Plan

• Back to Basics

www.salga.org.za

FLAGSHIP PROJECTS

40

Goal 2:

Good Governance and Resilient Municipal Institutions

SALGA Leadership

empowered to lobby

more effectively

Engage media and

other public platforms

as part of the SALGA

lobbying and

advocacy strategy

Establish a Local

Government risk

management

system

Establish & support

implementation of an

accountability and

consequences

framework for Local

Government E.g. Establish accountability

indicators

Equitable & fair

institutional

performance based

remunerative regime for

Councillors & managers

Implementation

of a peer review

mechanism in

local

government

Implement

service

charter in

municipalities

www.salga.org.za 41

Lack of easily accessible, accurate and timely local governance and development data make it

difficult to anticipate challenges and intervene proactively.

Recent risks that could be anticipated better include: drought, financial distress, community

protest, labour unrest etc

Violent protest Incidents: 2000-2018

LIMITED CAPACITY TO ANTICIPATE RISK

www.salga.org.za 42

Outputs

1. Integrated data

management capacity to

enable risk detection in

LG by 31 March 2019

Activities

1. Repositioning of the Municipal Barometer

2. Establish LG risk monitoring system


OUTPUTS….

www.salga.org.za 43

33 municipalities mostly in the

red zone were supported on

various audit issues including

document management, Asset

registers, establishment and

operationalisation of Audit

Committees & Internal Audit

units, Risk Management etc.

Overall the results showed a

slight regression.

Amalgamated municipalities

fared poorly with majority of

them getting adverse or

disclaimer opinions

MSCOA remains a major

threat of regression to future

audit outcomes.

MUNICIPAL AUDIT OUTCOMES

2016/17 2015/16 2014/15 2013/14 2012/13 2011/12

Unqualified with no findings 15% 20% 22% 14% 8% 3%

Unqualified with findings 45% 44% 38% 39% 35% 38%

Qualified 23% 22% 23% 26% 30% 24%

Adverse 1% 1% 1% 1% 3% 1%

Disclaimer 9% 8% 10% 20% 24% 32%

Audit Not yet finalised 7% 0% 0% 0% 0% 0%

New Municipality 0 6% 6% 0% 0% 0%

7%0% 0%

0% 0% 0%

9% 8% 10% 20% 24%32%1% 1%

1%1%

3%

1%23%

22%23%

26%

30%24%

45%44% 38%

39%

35%38%

15%20% 22%

14%8%

3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

MUNICIPAL AUDIT OUTCOMES % (2012-2017)

www.salga.org.za

RED ZONE MUNICIPALITIES

44

Western

Cape

Mpumalanga Kwa-Zulu

Natal

Gauteng Eastern

Cape

Limpopo North West Free State Northern

Cape

Beaufort

West

Thaba

Chweu

Inkosi

Langalibalele

Dr Beyers

Naude

Ba-

Phalaborwa

Bojanala

District Letsemeng Phokwane

City of Cape

Town Msunduzi Mnquma Mogalakwena Ditsobotla Mohokane Joe Morolong

Knysna

Enoch

Mgijima

Mopani

District Madibeng Masilonyana Renosterberg

Kannaland

Walter

Sisulu Greater Giyani

Ngaka Modiri

Molema DM Ngwathe Siyathemba

Thabazimbi

Lekwa

Teemane

Maluti-A-

Phofung Kai Garib

Vhembe

District Mamusa Tokologo Ubuntu

Modimolle-

Mookgophong

Moses

Kotane Nketoana Kgatelopele

NW405 Mafube Tsantsabane

The number of RED Zone

municipalities has increased

slightly from 38 in 2015/16 to

42 in 2016/17 for various

reasons.

Generally, municipalities in the

RED Zone are facing

challenges relating to Annual

Financial Statements,

Procurement, Internal Control

deficiencies and mSCOA.

Additional challenges

including those that

municipalities did not have

much control over include:

Knysna Fires which contributed

to the AGSA audit not being

finalised timeously.

www.salga.org.za 45

33 municipalities mostly in the red

zone were supported on various audit

issues including document

management, Asset registers,

establishment and operationalisation

of Audit Committees & Internal

Audit units, Risk Management etc.

Overall the results showed a slight

regression.

Amalgamated municipalities fared

poorly with majority of them getting

adverse or disclaimer opinions

MSCOA poses a major threat of

regression to future audit outcomes.

MOVEMENT IN MUNICIPAL AUDIT OUTCOMES

Municipal Audit Outcome 2015/16 2016/17 Change Movement

Audit Not yet finalised 15 18 -3 Regressed

Disclaimer 25 24 1 Improved

Adverse 4 4 0 No Change

Qualified 63 65 -2 Regressed

Unqualified with findings 122 112 -10 Regressed

Unqualified with no findings 49 34 -15 Regressed

278 257

www.salga.org.za 46

Outputs

1. Accountability and

consequences

framework for LG

developed by 31

March 2019

Activities

1. Accountability and consequence management

framework for LG developed

2. Accountability index / barometer for LG developed

3. Monitor the impact of MPACs

4. Develop concept paper on performance based

incentives for POB and officials


OUTPUTS….

www.salga.org.za 47

Implementati

on of a peer

review

mechanism in

local

government

PROBLEM STATEMENT

Lack of a peer review mechanism (self appraisal mechanism) to enhance

knowledge sharing and peer learning and information exchange amongst and

in between municipalities in South Africa.

Need for municipalities to self appraise and cross reference amongst peers

Need for municipalities to share knowledge and experience amongst one

another.

Peer learning between municipalities will save a lot of resources in municipalities.

www.salga.org.za 48

Outputs

1. Peer review

annual report

developed by

31 March 2019

Activities

1. Develop a peer review mechanism in local

government

2. Make a call for municipal voluntary participation on

the peer review

3. Support municipalities to implement the peer review

plan

4. Compile a peer review report


OUTPUTS….

www.salga.org.za 49

Facilitate effective

cooperative

management

system Engage media and

other public

platforms as part of

the SALGA lobbying

and advocacy

strategy

SALGA Leadership

empowered to

lobby more

effectively

PROBLEM STATEMENT

The role and profile of local government and its leadership is often misunderstood by the

public including the media. SALGA has paid too much attention in finding relevance with

its members (municipalities) and profile the role of SALGA in its intergovernmental

processes without advancing profiling what is the context of local government leadership

and the element of such a sphere of government in the country.

As a result SALGA is perceived as an association of unions without understanding that

SALGA is membership centric association established to:

Lobby, advocate and represent the interest of its members;

Build capacity to the local government leadership as well as its technical capacity;

Support and advice its members on a range of issues to assist them to execute their

mandate;

Build the profile the image of local government within South Africa and

international, and;

Serve as the custodian of local government intelligence and knowledge hub

As a result we have done very little to strategically profile the image of local

government within South Africa.

www.salga.org.za 50

Outputs

1. Annual impact

assessment report on

the level of SALGA’s

influence in IGR

processes by 31

March 2019

2. Reforms for

councillor support

and welfare to ensure

equity by 31 March

2019

Activities

1. SALGA to better influence the agenda of IGR Policy and legislative

platforms

2. Develop and implement training programmes to empower SALGA

leadership

3. Facilitate SALGA’s participation at relevant IGR structures

4. Facilitate SALGA’s participation in national & provincial legislature

5. Engage media and other public platforms as part of the SALGA

lobbying and advocacy strategy

Activities

1. Facilitate engagements with COGTA to review policy and legislative

provision that limit the introduction of reforms for equitable councillor

support


OUTPUTS….

www.salga.org.za 51

In 2012 a SALGA HR practitioners conference

unanimously resolved that professionalism in the

sector is inadequate. Lack of professionalism has

direct impact on municipal performance. The

following are some of the challenges highlighted:

• Service delivery and other forms of protest;

• Low staff morale,

• Low productivity levels,

• High staff turnover,

• Adverse financial audit results.

• General instability within municipalities

In December 2016, SALGA and organised labour

signed a service charter, however many

municipalities have not begun implementing it.

www.salga.org.za 52

Outputs

1. Framework /

Policy on the

Service and

Behaviours

Charter

implemented in

municipalities by

31 March 2019

Activities

1. Develop and implement a framework on service and

behaviours charter for municipalities

2. Quarterly monitoring of compliance with service

charter and all other SALGBC Collective

Agreements


OUTPUTS….

www.salga.org.za 53

2018/19 GOAL 2 : OTHER DELIVERABLES

1. Determine and promote alternative innovative mechanisms to enhance inclusive governance & public

participation;

2. Lobby for the devolution of powers and functions;

3. Implementation of a Municipal Audit Support Program;

4. Apply the SALGA “Municipal Support and Interventions framework”, to provide for coherent and integrated

support to municipalities;

5. Conclude a multi-year salary & wage collective agreement in Local government;

6. To professionalise Local Government;

7. Strategic municipal human capital management;

8. Capacity building of councillors and officials; and

9. Leverage on selected municipal excellence (Good practices) to champion specified policy agenda.

54

GOAL 3:

Financial Sustainability of Local Government and Greater Fiscal Equity

54

www.salga.org.za 55

STRATEGIC GOAL 3Financial Sustainability of Local Government and Greater

Fiscal Equity

To develop and support the

implementation of financial strategies for the long-term sustainability and viability of local

government

To support innovative revenue

enhancement strategies for local

government

To strengthen financial

management systems and

controls

Objective 2Objective 1 Objective 3

Context Linkages to

Global and national

Improvement of

financial health

of municipalities

through:

• A revised local

government

fiscal

framework

• Effective

revenue

management

and

enhancement

• Sound

financial

management

• National

Development

Plan

• Integrated Urban

Development

Framework

• Back to Basics

• Sustainable

Development

Goals

www.salga.org.za

FLAGSHIP PROJECTS

56

Goal 3:

Financial Sustainability of Local Government and

Greater Fiscal Equity

Lead a multi-

partner

process to

eradicate

municipal debt

(owed to and

by

municipalities)

Lobby for the

establishment

of a revenue

collection

agency

Lobby for an

equitable fiscal

system for

Local

Government

Lobby for the review of preferential

procurement framework to include

• A clause that prohibits

municipalities not to do business

with service providers that are in

arrears with their utility bill

• Provisions in the Executive Ethics

Code & PFMA financial

management of legislatures to

prohibit public representatives

management from owing

municipalities over three months

www.salga.org.za 57

DIVISION OF REVENUE: INCLUDING DEBT SERVICE COSTS

• We spend more on

interest on borrowing

than we transfer to local

government

• Debt service costs are

the fastest growing

portion of the budget

(growth of 10.5% per

annum vs. 9.1% for local

government).

www.salga.org.za

KEY CONDITIONAL GRANT EXPENDITURE (2011 - 2016)(S.71 CONSOLIDATION)

58

Grant name Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 June -17

Expenditure as a % of allocation

Municipal Infrastructure

Grant78 84 85 95 92 93 92

Public Transport

Infrastructure Grant56 49 82 84 85 N/A 88

Integrated National

Electrification Grant88 93 81 81 105 90 99

Neighbourhood

development partnership

grant

49 95 92 88 72 72 69

Municipal Systems

Improvement Grant93 101 58 98 95 92 -

Financial Management

Grant104 99.8 96 98 94 94 94

In 2016/17 Municipalities reported expenditure

of R26 billion (86.7 per cent) against

the total conditional grant allocation

of R30 billion as at 30 June 2017.

Aggregated year-to-date total

expenditure for Metros amounts to

R212.8 billion of the adjusted

expenditure budget of R233 billion.

Consumer debt amounted to R128.4

billion as compared to the R128.3

billion reported in the previous

quarter.

The overall expenditure reported by

municipalities as at the end of the

2016/17 financial year is 87.5 per

cent against the R29.8 billion

transferred to municipalities.

www.salga.org.za 59

MUNICIPAL DEBT

Municipal debt – which

includes both non-current

and current liabilities

currently sits at R128

billion.

With total assets worth

R737 billion, that translates

to a debt ratio of 29%.

In other words, 29 cents of

every rand used to finance

municipal operations was in

the form of debt.

www.salga.org.za

OPERATING REVENUE AND EXPENDITURE GROWTH

Expenditure growing faster than the ability to generate revenue

Operating revenue grew by 4.3% while

Operating expenditure grew by 4.6%

www.salga.org.za 61

CHALLENGES IN MUNICIPAL REVENUE COLLECTION

Municipalities are

unable to exercise

credit control in

Eskom ‘supply

areas’ which has a

negative impact on

municipal revenue

generation and

sustainability

Collection rates in

municipal supply

areas are in

general much

higher than in

‘Eskom supply

areas’ as

illustrated in the

example of

Overstrand

www.salga.org.za 62

Outputs

1. Reviewed fiscal

reforms by 31

March 2019

2. Alternative

revenue

generation

streams by 31

March 2019

Activities

1. Conduct research on fiscal reforms as introduced by national

government

2. Develop SALGA proposals for the review of the fiscal architecture

for local government

3. Lobby relevant stakeholders (including consultation with member

municipalities) such as BF, NCOP, SCOA for the review of fiscal

reforms

Activities

1.Identify alternative ICT and innovative revenue streams for

municipalities

2.Support municipalities to implement alternative revenue streams

3.Develop a tariff model benchmark linked to different service

standards for municipalities


OUTPUTS….

www.salga.org.za 63

Outputs

1. Municipalities

supported to

manage debt

owed to and by

municipalities

by 31 March

2019

Activities

1. Gather information on the debts owed to municipalities;

2. Classification of debts (business, residential, government & staff)

3. Identify relevant stakeholders (multi-partnership approach) to

eradicate debt to municipalities

4. Together with stakeholders, develop strategies for differentiated

support for municipalities on debt management

5. Establish a revenue collection agency

6. Develop a position on the amendment of relevant legislation

relating to debt management and revenue collection

o (compel all state employees, entities, all public office bearers,

etc not to be in arrears on their municipal bills

o SCM regulation and PPF to include a clause that prohibits

municipalities not to do business with service providers that

are in arrears


OUTPUTS….

64

FINANCING THE PLAN

64

www.salga.org.zawww.salga.org.za

BUDGET PARAMETERS

• Medium term budget for 2018/19 – 2021

• Aligned to CPI as projected to National Treasury

• Operating Expenditure for year 1 = R637 Mill

• Membership levies for Year 1 = R560 Mill

• The formula remains the same as in prior years

R thousand

Budget Parameters 2018/19 2019/20 2020/21

Administrative Costs Growth Rate - Projected Consumer Price Index (CPI) 6.2% 5.9% 5.6%

Employee Costs Growth Rate - Projected Consumer Price Index (CPI plus 100 basis points) 7.2% 6.9% 6.6%

Operating Expenditure R 636 973 R 674 554 R 712 329

Total Revenue (incl. Interest received) R 647 602 R 674 057 R 716 146

Early Settlement Discount - Estimation based on prior year take up R 9 000 R 9 000 R 9 000

Net Membership Levies R 560 672 R 597 703 R 636 296

Government Grant - Executive Authority R 33 100 R 34 954 R 38 449

Medium Term Estimates

www.salga.org.za

THANK YOU

66

Documents

2018/19 ANNUAL PERFORMANCE PLAN MEDIUM TERM …