1 Wednesday, 18 March 2020] No 34—2020] SECOND SESSION, SIXTH PARLIAMENT

PARLIAMENT

OF THE

REPUBLIC OF SOUTH AFRICA

_____________________

ANNOUNCEMENTS, TABLINGS AND

COMMITTEE REPORTS _____________________

WEDNESDAY, 18 MARCH 2020

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TABLE OF CONTENTS

ANNOUNCEMENTS National Assembly and National Council of Provinces 1.   Draft Bills submitted – Joint Rule 159 ............................................................................. 2 National Assembly 1.   Appointment of whip ........................................................................................................ 2 National Council of Provinces 1.   Transmission of Bills for concurrence ............................................................................. 3 TABLINGS National Assembly and National Council of Provinces 1.   Minister of Basic Education ............................................................................................ 3

2 2.   Minister of Defence and Military Veterans ...................................................................... 3 3.   Minister of Employment and Labour .............................................................................. 3 4.   Minister of Finance ........................................................................................................... 3 5.   Minister of Human Settlements, Water and Sanitation .................................................... 5 6.   Minister of International Relations and Cooperation ....................................................... 5 7.   Minister of Social Development ....................................................................................... 5 8.   Minister of Transport ........................................................................................................ 6 9.   Minister in The Presidency .............................................................................................. 6 10.   Minister of Tourism ......................................................................................................... 6 COMMITTEE REPORTS National Assembly 1.   Social Development .......................................................................................................... 7 National Council of Provinces 1.   Cooperative Governance and Traditional Affairs ............................................................ 9

ANNOUNCEMENTS

National Assembly and National Council of Provinces The Speaker and the Chairperson 1.   Draft Bills submitted in terms of Joint Rule 159

(1)   Employment Equity Amendment Bill, submitted by the Minister of Employment and Labour.

Referred to the Portfolio Committee on Employment and Labour and the Select Committee on Trade and Industry, Economic Development, Small Business Development, Tourism, Employment and Labour.

National Assembly The Speaker 1.   Appointment of whip

(a)   The following member has been appointed as a whip of the Economic Freedom

Fighters in the National Assembly with effect from 1 March 2020:

Maotwe, O M C

National Council of Provinces

3 The Chairperson 1.   Bills passed by Assembly and transmitted to Council for concurrence

(1)   Bills passed by National Assembly and transmitted for concurrence on 18 March

2020:

(a)   Division of Revenue Bill [B 3 - 2020] (National Assembly – sec 76). The Bill has been referred to the Select Committee on Appropriations of

the National Council of Provinces.

(b)   Judicial Matters Amendment Bill [B 13B - 2019] (National Assembly – sec 75).

The Bill has been referred to the Select Committee on Security and Justice

of the National Council of Provinces.

TABLINGS

National Assembly and National Council of Provinces 1. The Minister of Basic Education

(a) Strategic Plan of the Department of Basic Education for 2020-2024. (b) Annual Performance of the Department of Basic Education for 2020/21.

2.   The Minister of Defence and Military Veterans

(a)   Strategic Plan of the Department of Military Veterans for 2020-2025.

(b) Annual Performance Plan of the Department of Military Veterans for 2020/21.

3.   The Minister of Employment and Labour

(a) Strategic Plan of the Compensation Fund for 2020/21 – 2024/25.

(b) Annual Performance Plan of the Compensation Fund for 2020/21.

4.   The Minister of Finance

(a)   Strategic Plan of National Treasury for 2020/25.

(b)   Annual Performance Plan of National Treasury for 2020/21.

(c)   Strategic Plan of the Accounting Standards Board for 2020/25.

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(d)   Annual Performance Plan of the Accounting Standards Board for 2020 – 2021.

(e)   Strategic Plan of the Co-operative Banks Development Agency for 2020 – 2025.

(f)   Annual Performance Plan of the Co-operative Banks Development Agency for 2020/2021.

(g)   Strategic Plan of the Financial Services Providers (FAIS Ombud) for 2020 – 2025.

(h)   Annual Performance Plan of the Financial Services Providers (FAIS Ombud) for

2020/21.

(i)   Strategic Plan of the Independent Regulatory Board for Auditors for 2021 – 2025.

(j)   Annual Performance Plan of the Independent Regulatory Board for Auditors for 2020/2021.

(k)   Strategic Plan of the Office of the Tax Ombud for 2020 – 2025.

(l)   Annual Performance Plan of the Office of the Tax Ombud for 2020/21.

(m)   Strategic Plan of the Pension Funds Adjudicator for 2020 – 2025.

(n)   Annual Performance Plan of the Pension Funds Adjudicator for 2020/21.

(o)   Strategic Plan for 2020/21 – 2024/25 and Annual Performance Plan of the Financial

Intelligence Centre for 2020/21.

(p)   Strategic Plan of the Financial Sector Conduct Authority for 2020 – 2025.

(q)   Annual Performance Plan of the Financial Sector Conduct Authority for 2020/21.

(r)   Strategic Plan of the Government Pensions Administration Agency for 2020/21 – 2024/2025.

(s)   Annual Performance Plan of the Government Pensions Administration Agency for

2020 – 2021.

(t)   Strategic (Corporate) Plan of the Development Bank of Southern Africa for 2020 – 2023.

(u)   Strategic Plan of the South African Revenue Service for 2020/21 – 2024/2025.

(v)   Annual Performance Plan of the South African Revenue Service for 2020/21.

(w)   Strategic (Corporate) Plan of the Public Investment Corporation for 2020/21 –

2020/21.

(x)   Strategic Plan of the Government Technical Advisory Centre for 2020/25.

(y)   Annual Performance Plan of the Government Technical Advisory Centre for 2020/21.

5 5.   The Minister of Human Settlements, Water and Sanitation

(a)   Strategic Plan of the Department of Human Settlements for 2020 - 2025.

(b)   Annual Performance Plan of the Department of Human Settlements for 2020/ 2021.

(c)   Strategic Corporate Plan of the National Home Builders Registration Council

(NHBRC) for 2020-2025.

(d)   Annual Performance Plan of the National Home Builders Registration Council (NHBRC) for 2020-2021.

(e)   Strategic Plan of the Housing Development Agency for 2020/2021-

2024/2025.

(f)   Strategic Plan of the Housing Development Agency for 2020-2021.

(g)   Strategic Plan of the Social Housing Regulatory Authority (SHRA) for 2020/21- 2024/25.

(h)   Annual Performance Plan of the Social Housing Regulatory Authority

(SHRA) for 2020/21.

(i)   Strategic Plan of the Community Schemes Ombud Service for 2020 - 2025.

(j)   Annual Performance Plan of the Community Schemes Ombud Service for 2020/21 – 2022/23.

6. The Minister of International Relations and Cooperation

(a)   Treaty of Amity and Cooperation (TAC) in South East Asia, tabled in terms of

section 231(2) of the Constitution, 1996.

(b)   Explanatory Memorandum to the Treaty of Amity and Cooperation (TAC) in South East Asia.

7. The Minister of Social Development

(a) Strategic Pan of the Department of Social Development for 2020/21 – 2024/25. (b) Annual Performance Plan of the Department of Social Development for 2020/21. (c) Strategic Plan of the South African Social Security Agency for 2020/21 – 2024/25. (d)   Annual Performance Plan of the South African Social Security Agency for 2020/21. (e) Strategic Plan of the National Development Agency for 2020/21 – 2024/25. (f)   Annual Performance Plan of the National Development Agency for 2020/2021.

6 8.   The Minister of Transport

(a) Strategic Plan of the Driving Licence Card Account for 2020/21 – 2024/25. (b) Annual Performance Plan of the Driving Licence Card Account for 2020/21. (c) Strategic Plan of the Ports Regulator of South Africa for 2020/21 to 2024/25. (d) Annual Performance Plan of the Ports Regulator of South Africa for 2020/2021.

9. The Minister in The Presidency

(a)   Annual Performance Plan of the Media Development and Diversity Agency (MDDA) for 2020/21.

(b)   Strategic Plan of the Media Development and Diversity Agency (MDDA) for 2020/2021- 2024/2025.

(c)   Strategic Plan of the Government Communication and Information System (GCIS) for 2020/21–2024/25.

(d)   Annual Performance Plan of the Government Communication and Information

System (GCIS) for 2019/20 – 2021/22.

(e) Strategic Plan of Brand South Africa for 2020/2021–2024/2025. (f) Annual Performance Plan of Brand South Africa for 2020-21.

10. The Minister of Tourism (a)   Strategic Plan of South African Tourism for 2020/21-2024/25.

(b)   Annual Performance Plan of South African Tourism for 2020/21.

COMMITTEE REPORTS National Assembly

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1. Report of the Portfolio Committee on Social Development on the Social

Assistance Amendment Bill [B 8 – 2018] (National Assembly – sec 76)],

dated 17 March 2020

The Portfolio Committee on Social Development, having considered the subject of the

Social Assistance Amendment Bill [B 8 – 2018] (National Assembly – sec 76)], referred to

it and classified by the Joint Tagging Mechanism as a section 76 Bill, reports the Bill with

amendments. The Committee wishes to report as follows:

On 07 November 2019, the Social Assistance Amendment Bill, [B8 – 2018] was introduced

and referred to the Committee in the Announcement, Tablings and Committee Reports

(ATC) for consideration and report. On 13 November 2019, the Committee was briefed by

the Department of Social Development on the contents of the Bill. The Committee

resolved to place an advertisement requesting the public to submit written submissions and

also to indicate their interest to make oral submissions on the Bill. An advertisement was

placed from 15 November to 13 December 2019. This was in adherence to the

Constitutional mandate to involve public in Parliament’s legislative processes.

In response to a call for public comments the Committee received a total of six (6)

submissions from various stakeholders who expressed their interest in making oral

submissions. The stakeholders were as follows:

•   Black Sash Trust,

•   Children’s Institute,

•   Centre for Child Law,

•   Catholic Parliamentary Liaison Office,

•   Children in Distress Network,

•   and Ms Nomhle Nkwanyana.

The Committee conducted public hearings on 26 February 2020, and all the above

mentioned interested stakeholders made their oral submissions before the committee. The

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Committee after public hearings invited the Department of Social Development to respond

to issues raised on submissions by the public. The Committee proceeded to the formal stage

of the Bill (clause by clause).

The Committee proposed the following amendment:

Clause 7

1.   On page 4, in line 4, after “must”, to insert “, after consultation with Parliament,”.

Clause 11

2.   On page 5, in line 31, to omit 2018 and to substitute 2020 Act.

Clause 12

3.   On page 5, in line 48, to omit “2018” and substitute “2020”.

The Committee unanimously agreed to the Bill with amendments.

Report to be considered.

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National Council of Provinces

1. Report of the Select Committee on Co-operative Governance and

Traditional Affairs Inspection in Loco on Notice of Dissolution issued in terms

of section 139(1)(c) of the Constitution (1996), in City of Tshwane

Metropolitan Municipality, dated 18 March 2020

1. Background and Overview

1.1 The Select Committee on Co-operative Governance and Traditional Affairs, having

considered the request by the National Council of Provinces (NCOP), to consider and

report on the intervention notice invoked in the City of Tshwane Metropolitan

Municipality in terms of section 139(1)(c) of the Constitution, reports as follows:

1.2 In terms of NCOP Rule 101, the Office of the Chairperson of the NCOP referred the

notice of dissolution by the Premier of Gauteng Province to the Select Committee for

consideration and reporting. On 17 and 18 March 2020, the Select Committee conducted

a loco inspection in the City of Tshwane Metropolitan Municipality.

2. Objective of the Loco Inspection in the City of Tshwane Metropolitan Municipality

2.1 The main objective was to interact with the internal and external stakeholders of the

Municipality in order to solicit their opinions on the constitutional, procedural and

substantive matters related to the invocation of section 139(1)(c) of the Constitution.

3. Composition of the Delegation

3.1 The Select Committee delegation was composed of the following Members of

Parliament: Hon A Gxoyiya (ANC) Northern Cape; Hon ZV Ncitha (ANC) Eastern

Cape; Hon IM Sileku (DA) Western Cape; Hon SE Mfayela (IFP) KwaZulu-Natal; Hon

EM Mthethwa (ANC) KwaZulu-Natal; Hon M Dangor (ANC) Gauteng; Hon K

Motsamai (EFF) Gauteng; Hon C Visser (DA) North West; Hon S Zandamela (EFF)

 

 

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Mpumalanga; Hon MP Mmola (ANC) Mpumalanga; Hon S Shaikh (ANC) Limpopo and

Hon TSC Dodovu (ANC) North West.

3.2 Parliamentary Officials: Mr TM Manele (Committee Secretary: Committee Section); Mr

N Mfuku (Content Adviser: Committee Section); Mr L Ben (Committee Assistant); Mr

M Mbebe (Procedural Officer: NCOP).

4. Outline of Stakeholders of the Loco Inspection at City of Tshwane Metropolitan

Municipality

4.1 On 17 and 18 March 2020, the delegation of the Select Committee interacted with senior

officials of the Department of CoGTA (led by the MEC), representatives of the African

National Congress (ANC), Democratic Alliance (DA), Economic Freedom Fighters

(EFF), Freedom Front Plus (FF+), African Christian Democratic Party (ACDP),

Congress of the People (COPE), the South African Municipal Workers Union

(SAMWU), Tshwane Progressive Professional Forum, Youth Formation, Women’s

Forum, Business Forum, Traditional Leaders, South African National Civic

Organization (SANCO) and the South African Local Government Association

(SALGA).

5. Constitutional and Procedural Matters Related to the Intervention and Progress

Report

5.1 Letters of concurrence were written on the 06 March 2020 to the Minister of Cooperative

Governance and Traditional Affairs, the Chairperson of the NCOP, the Speaker of

Gauteng Provincial Legislature and the Speaker of the City of Tshwane Metropolitan

Municipality. The Minister approved the intervention on 9 March 2020.

5.2 The dissolution takes effect 14 days from the date of receipt of the notice by the NCOP,

unless set aside by the Minister or the NCOP before the expiry of those days. Currently,

the Minister has concurred with the decision of the Gauteng Provincial Executive

Council (PEC) to dissolve the City.

6. Presentation by the MEC for Human Settlements, Urban Planning, Cooperative

Governance and Traditional Affairs

 

 

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6.1 On 17 March 2020, the MEC briefed the delegation of Select Committee with a report on

the State of Affairs in the City of Tshwane Metropolitan Municipality with reference to the

financial management; Service Delivery; Governance (including issues of corruption and

maladministration); and Institutional Capability (Administration). The presentation also

provided progress report to date, since the resolution of EXCO meeting held on 04 March

2020.

6.2 The MEC for Human Settlements, Urban Planning, Cooperative Governance and Traditional

Affairs made a presentation on the constitutional, procedural and substantive reasons for the

invocation of section 139(1)(c) of the Constitution in the Municipality, while the

representatives of the political parties and Organised Labour, and external stakeholders of the

Municipality shared their opinions with regard to the intervention.

6.3 Since 2016 post local government elections, the City of Tshwane has experience serious

governance challenges, ranging from the appointment of the City Manager, allegations of

widespread corruption and an account of unacceptable, unjustifiable and unreasonable

walkouts and disruptions by councillors during council meetings.

6.4 The former MEC for CoGTA and Human Settlements, Mr Paul Mashatile, wrote a letter in

terms of Section 54A(7)(a) of the Local Government: Municipal Systems Act, as amended

(Act No. 32 of 2000) to the then Executive Mayor, regarding the appointment of the City

Manager, Dr Mosoloa on 22 February 2017.

6.5 The MEC of Human Settlements, Urban Planning, Cooperative Governance and Traditional

Affairs met with the Senior Managers of Tshwane on 07 March 2020. A Planning Workshop

with OTP, CoGTA and Tshwane to develop the Programme of Action for the 90-days was

held on 11-12 March 2020. Engagements with the communities of Tshwane were done by

EXCO on 11 March 2020. A Legal Strategy was drafted in consultation with the Counsel.

The MEC will be meeting with the CEO of the Independent Electoral Commission (IEC) on

18 March 2020, regarding the bi-elections at Tshwane.

6.6 Subsequent to the Executive Council meeting held in 05 December 2019 and the

resolution to apply section 139(1)(a) and 154 of the Constitution at the City of Tshwane.

 

 

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The Executive Authority took a number of steps to bring about political stability in the

Municipality, some of which were issuing of directives on 14 January 2020; Establishing a

section 154 technical support team in January 2020; Convene a meeting with the Speaker with

a view to discuss the collapse of a number of council sittings. The Speaker failed, neglected

and ignored the invitation. The MEC convened a meeting of the Whips of political parties in

council on the conduct of councillors on 27 January 2020.

6.7 The City has been achieving unqualified audit opinion for the last three consecutive years,

with findings identified on leadership, expenditure management, compliance with legislation

and internal controls, etc. There have been a number of motions of no confidence against the

former Mayor Solly Msimang, former Mayor Mokgalapa, the current Speaker councillor

Mathebe and a motion to suspend the former City Manager. These took during the following

dates: 27 September 2018, 25 April 2019, 25 July 2019, 29 August 2019, 28 November 2019,

5 December 2019, 16 January 2020, 30 January 2020, and 27 & 28 February 2020.

7. Critical issues affecting the City of Tshwane Metropolitan Municipality based on the

Back to Basic Approach

7.1 The MEC briefed the delegation of the Select Committee and the municipal stakeholders on

critical issues affecting the City of Tshwane Metropolitan Municipality based on the Back to

Basic Approach. The presentation focused on financial management; Service Delivery;

Governance (including issues of corruption and maladministration); and Institutional

Capability (Administration).

8. Functionality of Ward Committees and Back to Basic Approach

8.1 There is a fundamental disconnect between the Executive and ward councillors and this

undermines participatory democracy, as provided in the local government legislative

frameworks. Since the inception of the municipal council in August 2016, not a single Ward

Committee has been established. It is now towards the end of the term and still Ward

Committees are not in place. This is non-compliance and contravention of the law.

9. Service Delivery and Back to Basic Approach

 

 

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9.1 The City of Tshwane has been affected by the serious service delivery challenges,

particularly in Regions 5 and 7. The most affected areas are those that were historically

part of the North West and Mpumalanga Provinces. In the 2018/19 financial year, the City

did not achieve the set annual targets for provision of water to formal households,

provision of sanitation to formal and informal households. The City missed the targets by

far below the annual targets.

9.2 The City of Tshwane also has serious challenges of water quality, as well as reliability of

water provision. This is evident in the Hammanskraal and surrounding areas where the

quality of water was found to be unsuitable for human consumption as tested by CSIR and

the South African Human Rights Commission.

9.3 The water shortage is a high risk for the municipality as it posed health hazard in

communities, schools and health care facilities (especially Jubilee Hospital), which had

to close and transfer patients to other areas. It is an issue that has high potential to lead to

unrest within the affected areas.

9.4 Notwithstanding adverse reports by SAHRC and DWS that the quality of water in

Hammanskraal is not fit and suitable for human consumption, the City of Tshwane has not

yet resolved the challenges of water security and quality.

10. Good Governance and Back to Basic Approach 10.1 It is evident through the collapse of council meetings wherein the municipal council could not

complete the business of council, that there are serious leadership challenges in the

Municipality. There is total disrespect of the Rules and Orders of Council by those that are

supposed to protect and preside over the same Rules and Orders. Often, Rules and Orders are

used and interpreted to pursue certain political interest as opposed to facilitating the smooth-

running of council.

10.2 Overall, the totality of the above issues has created institutional instability in the City of

Tshwane. Irregularity in appointment of staff, for example the appointment of the Head of

Emergency Services.

 

 

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10.3 Unlawful awarding of tender to engineering company Glad Africa, which has also been

identified by the Auditor-General as such. Alleged irregular appointment of Aurecon to dispose

of the municipal property. Alleged loss of R1.6 billion to PEU Contract after same was

reappointed in 2018.

10.4 There is general instability of the governing coalition in the Municipality since the 2016 local

government elections. One of the underlying causes of the problem is the lack of formal

coalition regulatory instruments (coalition agreements).

11. Unauthorized Irregular, Fruitless and Wasteful Expenditure

 11.1 The irregular expenditure accounts for 73% of the total UIFW expenditure, followed by an

unauthorized expenditure of 25% and lastly, fruitless and wasteful expenditure at 2%. The

MPAC reported indicated that the City investigated at least R1.7 billion of the total R6.9 billion

UIFW expenditure. However, the report does not indicate if any monies were recovered thus

far. There is also slow progress in investigation of UIFW expenditures, although an engagement

was made with the City and assurance was provided that some cases have been referred to

SAPS.

12. Financial Management and Back to Basic Approach

12.1 The overall performance of the City of Tshwane on USDG as at 31 January 2020 was at 23%.

The USDG (R541 million) second tranche has been withheld due to low expenditure on the

projects. The NDPG (R4.5 million) tranche has been withheld due to non-submission of new

projects for approval by the National Treasury. In terms of the Human Settlements Development

Grant, the City failed to spend its allocation as at 31 December 2019.

13. Institutional and Administrative Capability and Back to Basic Approach

13.1 The suspension of the Senior Managers in service delivery cluster, namely, Head of Department

of Human Settlements and Roads and Transport, respectively, is amongst others the cause of

institutional instability. The City Manager position is vacant as a result of unjustifiable

separation settlement. Unprecedented labour unrests in the Municipality (The City lost over

R400 million during this period).

 

 

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14. Opinions of Political Parties and Stakeholders of the Municipality

14.1 During loco-inspection, the Select Committee interacted and solicited opinions of the

political parties, internal and external stakeholders of the Municipality. Their opinions are

tabled below:

15. Opinion of the African National Congress (ANC)

15.1 The representative of the ANC tabled submission that support the invocation of section

139(1)(c) of the Constitution in the Municipality. He indicated that some of the

substantive matters supporting the invocation of the dissolution included the absence of

the Mayor; of the City Manager; MMCs, adjustment budget and non-spending of

CAPEX. The representative raised concerns that the failure of the municipality to

establish functional Ward Committees has violated section 52(e) of the Constitution,

which requires the Ward Committees to be established within 90 days.

15.2 The representative indicated that the City of Tshwane has also serious challenges of

water quality, as well as reliability of water provision. This is evident in the

Hammanskraal and surrounding areas where the quality of water was found to be

unsuitable for human consumption as tested by the CSIR and the South African Human

Rights Commission.

15.3 The representative further indicated that in 2018, there was an investigation around the

appointment of unqualified people. Some of the major concerns raised by the

representative included unauthorized, wasteful and fruitless expenditure raised by the

audit outcomes of the Auditor-General. The representative alluded that support has been

provided to the Municipality in terms of section 139(1)(a) of the Constitution.

16. Opinion of the Democratic Alliance (DA)

16.1 The DA tabled a submission that did not support the invocation of section 139(1)(c) of

the Constitution. The representative informed the delegation that the City is in a stable

financial position as indicated by its credit rating upgrade, and the improvement in its

 

 

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core financial ratios along with managing its relationship with its creditors. Example

was provided that cash and cost coverage was initially 15 days and currently 53 days.

16.2 The representative informed the delegation that the city has continually received

unqualified audit reports, indicating that the Auditor-General was satisfied with the City

finances. The representative indicated that SCM policy has been reviewed, in order to

tighten up spending and prevent any unnecessary wasteful or irregular expenditure. The

representative urged that the Municipality has successfully challenged and corrected

issues regarding problematic tenders such as PEU smart meters’ contract, set aside and

terminated the Glad Africa contract.

16.3 On service delivery the representative indicated that the municipality has run with the

provision of water, electricity and waste removal. The issues pertaining on Rooival

Waste Water Treatment Plant have been addressed, and that a R250 million tender has

been awarded to refurbish the plant.

16.4 While acknowledging that the Municipality does not have an Executive Mayor and a City

Manager, the reason behind the vacancies is because of a failure of the ANC and EFF

councillors who have continually collapsed or purely not attending the meetings of the

council since December 2019.

16.5 The representative indicated that the DA on the invocation of section 139(1)(c), they

have approached the high court to have the matter stopped as they believe the reasons

that have been provided by the Provincial Department of CoGTA forming the basis for

the intervention, are frivolous and without any basis or clear understanding of the facts

pertaining to service delivery in the City.

16.6 The representative argued the decision to dissolve the council of Tshwane has no basis

in law, and has no facts supporting its justification because it is being done purely for

political reasons.

16.7 The representative further argued the implication of having citywide by-election in 90

days subsequent to the dissolution, would place an immense strain on the IEC so close

 

 

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to a municipal election year and that, with the current corona virus outbreak, such a

decision could pose severe health risks to the lives of Tshwane residence.

17. Opinion of Economic Freedom Fighters (EFF)

17.1 The representative of the EFF tabled a submission that supported the invocation of

section 139(1)(c) of the Constitution in the Municipality. The representative raised

concerns that the Municipality, under the leadership of the DA, has failed to deal with

dumping sites and cable theft in the township and underspending of budget. The

representative further raised concerns about the non-suspension of the Speaker, for

suppressing democratic practices in the council and the use of private companies’

security.

18. Opinion of Freedom Front Plus (FF+)

18.1 The representative of the FF Plus tabled the submission that did not support the

invocation of section 139(1)(c) of the Constitution. They raised concerns that when the

former Executive Mayor instituted investigation on allegations of illegal and improper

management practices by the former City Manager that could lead to suspension, the

EFF and the ANC voted against the suspension and possible appointment of a City

Manager that would ensure effective administration of the City.

18.2 The representative indicated that the former City Manager implemented the Glad Africa

contract, which hampered progress and service delivery in the City.

18.3 It was indicated that governance was hampered by the collapsing of council meetings

since December 2019, and the failure of the ANC and EFF to pass a vote of no

confidence against the Executive Mayor.

18.4 The representative indicated that the people of Hammanskral have been provided with

clean water suitable for human consumption. The representative expressed

disappointment about the invocation of section 139(1)(c) of the Constitution. He

indicated that invocation came after political parties in the Municipality agreed to have

a meeting, under the leadership of the Deputy Speaker, were the agenda was to table a

 

 

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motion of no confidence against the Mayor and the Speaker, including the election of a

Mayor, appointment of the City Manager and the approval of the adjustment budget.

19. Opinion of Congress of the People (COPE)

19.1 The representative of COPE tabled a submission that did not support the invocation of

section 139(1)(c) of the Constitution. He argued that there were no compelling reasons

for the dissolution of the municipal council. It was indicated that there were walkouts in

council meetings and lack of consequence management.

20. Opinion of African Christian Democratic Party (ACDP)

20.1 The representative of the ACDP did support the invocation of section 139(1)(c) of the

Constitution in the Municipality. Concerns were raised on the awarding of tenders since

2016, and lack of consequence management and the use of insourcing of the private

security.

21. South African Municipal Worker Union (SAMWU)

21.1 The representative of the Union supported the invocation of section 139(1)(c) of the

Constitution in the Municipality. The Union representative indicated that it has been

engaging councillors on the collapsing of council meeting since 2019. On 05 February

2020, the Union marched to the office of the Executive Mayor and City Manager,

demanding that councillors process reports on 27 February 2020.

21.2 The representative raised concerns that the City does not have an Executive Mayor and

Mayoral Committee and this has impact on municipal governance on matters related to

evaluation of credit control, revenue, debt collection, enhancement of partnership, Ward

Committees and setting of section 79 committees.

21.3 On impact on administration, the Union representative raised concerns about the non-

approval of adjusted budget, departmental overspending, incurring of unauthorized

expenditure, the possibility of the City not to pay overtime, salaries and benchmarking

pays scheduled for July 2020.

 

 

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21.4 The Union indicated that the absence of the City Manager has an impact on fiduciary

duties like managing bank account; signing letters on grant utilization and approval of

tenders.

22. Opinion of SALGA

22.1 The MEC for CoGTA in Gauteng, announced on 23 Jan 2020 the suspension of two

Councillors, Speaker of Tshwane and the former Speaker of the City of Johannesburg;

upon being alerted to the suspension, SALGA initiated an engagement to obtain factual

information regarding the suspension of the Councillors. During such engagement and

upon assessment, it became evident to the Association that the allegation levelled against

the MEC were not substantiated with demonstrable evidence when considering the

inherent dysfunctions endemic in the Municipality.

22.2 SALGA has made several attempts to meet with the City of Tshwane leadership but to

no avail. In order to meet the objectives of local government, SALGA recommended

the following basic actions:- Election of Executive Mayor; Appointment of Members of

Mayoral Committee; Appointment of City Manager; Establishment of Ward

Committees; formalisation of execution of Executive and Legislative function of

Council.

22.3 However, the Association argues that the in order to meet the objectives of local

government, the dissolution of the Metropolitan Council must meet the following basic

functions: Development of a clear and concise Intervention Execution Plan with clear

outputs, targets and timeframes; Clear and elaborate Terms of Reference for the

appointment of the Administrator together with Team of Experts – very important that a

team is deployed; Team to be appointed to possess necessary expertise, experience and

qualifications; Regular and Structured Reports on Implementation of the Intervention

Execution Plan; Convening peaceful by-elections and reconstitution of new municipal

council.

22.4 SALGA raised a concern of a possibility that the by-election as a result of the dissolution

of the municipal council, may not result in an outright majority in the council.

 

 

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23. Opinion of DA Youth Formation

23.1 The representatives of this forum tabled a submission that did not support the dissolution

of the Tshwane City Metropolitan Council, instead indicating that the City of Tshwane

Metropolitan Council has a track record of achievement on its mandate.

24. Opinion of DA Women Forum

24.1 The DA Women’s Forum re-iterated the view of its sister formation, the DA Youth

Formation, and thus does not support the dissolution of the Metropolitan Council. They

argued that there was no crisis in the Municipality. The City has made progress in respect

scheduling a Youth Summit and hosting Young Chief Executive Officers, including

Jacaranda Service Festival and Taking the Girl Child to School.

25. Opinion of Amakhosi

25.1 The Amakhosi tabled the submission that did support the invocation of section 139(1)(c)

of the Constitution. However, raised concerns with regard to the little support they were

receiving, which limits the responsibility to provide social cohesion. The last support

was provided in 2019. They have raised matter with the Speaker of the Municipality and

the MEC for CoGTA.

26. Mamelodi Youth Forum

26.1 The Mamelodi Youth Forum tabled its presentation advocating for non-dissolution of

the Tshwane City Metropolitan Council. They argued that the Municipality has provided

the involvement of the youth and access to the municipal tendering processes. There has

been progress by the Municipality on the Extended Public Works Programme.

27. Opinion of Progressive Women Forum

27.1 The Progressive Women’s Forum tabled a request that supports the dissolution of the

Metropolitan Council. Since 2016, the Municipality has not implemented the poor of the

poor policy. The Municipality is no longer providing dignitary sanitary pads. There is

 

 

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non-implementation of R1000 voucher for early childhood development. The drug

rehabilitation programmes implemented.

28. South African Civic Association

28.1 The South African Civic National Association (SANCO) equally tabled a presentation

in support of the dissolution of the Metropolitan Council. They argued that there is

generally lack of administrative capacity in the Municipality. Further, there is non-

maintain ace of township parks. Challenges on the municipal billing system were also

highlighted.

29. Progressive Professional Forum

29.1 Similarly, the Progressive Professionals Forum tabled a presentation in support of the

dissolution of the Metropolitan Council. Raised concerns on the lack of professionalism

in the Municipality. There was lack of service delivery for the past three years, Tshwane

Rapit Transport System, traffic congestion. The Customer Care of the Municipality is

not serving value to the community. Lastly, farms were converted to game farms and

with land overly priced.

30. Tshwane ANC Youth League

30.1 The ANC Youth League tabled a presentation in full support of the dissolution of the

Metropolitan Council, citing a series of municipal dysfunctions and inability to deliver

basic services like clean water supply, a human rights need, refuse removal,

dysfunctional street lighting, potholes and general lack of cleanliness, a requirement

necessary to comply with the Constitution regarding providing and maintaining a clean

and safe municipal environment.

31. Tshwane Concerned Residence

31.1 The Tshwane Concerned Residence supports the dissolution of the Metropolitan

Council. They raised concerns on the high rate of crime, non-implementation of by-laws,

 

 

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closure of business like Edgars (where 500 people lost jobs), non-supply of water tankers

and running water to schools.

32. Inner City Rejuvenation Forum

32.1 The Inner City Rejuvenation Forum tabled a presentation in support of the dissolution

of the Metropolitan Council. They were concern about the governance of the

Municipality, corruption, deterioration of services, refuse removal, crime, business

closures due to high commercial rent.

33. Chamber of Commerce and Business Forum

33.1 The Tshwane Chamber of Commerce and Business Forum equally made a presentation

in support of the dissolution of the Metropolitan Council, asserting an urgent need for

metropolitan community to be given an opportunity to give new councillors a fresh

mandate in view of the inherent dysfunctions in the Municipality.

34. Observations and Opinion of the Select Committee

34.1 The Select Committee has observed and noted that the notice of intervention in terms of

section 139(1)(c) of the Constitution in the City of Tshwane Metropolitan council has

complied with the constitutional requirements of notifying for concurrence the Minister of

CoGTA, the Chairperson of the NCOP, the Speaker of Gauteng Provincial Legislature and the

Speaker of the City of Tshwane Metropolitan council.

34.2 The MEC of Human Settlements, Urban Planning, Cooperative Governance and Traditional

Affairs, in trying to provide support to the City, has initiated directives in terms of section

139(1)(a) and 154 of the Constitution. However, the municipal council did not cooperate.

34.3 The Select Committee has noted that the Ministerial approval of the invocation of section

139(1)(c) in the City of Tshwane Metropolitan council has four conditions:

34.3.1 Firstly, that the Administrator be appointed by an identified team of experts with clear

terms of reference that will deal with the challenges experienced by the Municipality

 

 

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and Municipal council, including service delivery mandates, financial management

and audit issues, corporate and financial transgression, and the institutional and

administrative challenges.

34.3.2 Secondly, that the Administrator and the intervention team should work closely with

Back to Basic Coordinators of the Provincial Department of CoGTA.

34.3.3 Thirdly, that the MEC of Human Settlements, Urban Planning, Cooperative and

Traditional Affairs, should regularly inform the Minister of CoGTA on any further

developments on the intervention, and provide monthly progress reports and close-out

report upon revocation of intervention.

34.3.4 Fourthly, that the MEC of Human Settlements, Urban Planning, Cooperative

Governance and Traditional Affairs through the Administrator, liaise with the IEC to

ensure the arrangement for conducting and undertaking by-election processes.

35.1 The Select Committee notes with great concerns the general attitude and conduct of the

Speaker of the Municipality, who assumed the powers and functions of the council, without

authorisation nor delegation to the extent of eventual stalling of council meetings.

35.2 The Select Committee is of the opinion that governance problems related to political

instability in the City, has resulted in incidences of council’s inability to perform as required

by legislation, including passing of an adjustment budget and sitting of council, which are

executive obligations.

35.3 Sections 152 and 153 of the Constitution clearly set out the service delivery obligations of

municipalities. In the City of Tshwane, the Municipality has failed to ensure the provision of

services to communities in a sustainable manner, including waste removal and water

reticulation.

35.4 The Municipality has failed to promote safe and healthy environment. There is little or no

focus on repairs and maintenance resulting in distribution losses or services not rendered,

particularly in respect to polluted Hammanskraal drinking water crisis. It is national minimum

 

 

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standards on potable water supply in terms of the Water Services Act (Act 108 of 1997),

clearly a failure to meet its executive obligations.

35.5 The Municipality has also failed to encourage the involvement of communities and

community organizations in the matters of the City of Tshwane. The Select Committee has

noted that stakeholders concurred that the Municipality is in a state of paralysis, was

ungovernable has no community structures in place, including ward committees.

35.6 The City of Tshwane is the single-largest metropolitan Municipality in the country. Pretoria

is the capital of South Africa. It has the second-largest number of embassies in the world after

Washington DC. Many embassies thus call this City their home. The dissolution of a

Metropolitan Municipality is the first during the democratic South Africa Government since

1994. The inability of a capital City not to have City Manager is a very serious challenge.

35.7 The Select Committee has noted that the Premier of Gauteng Provincial Government has

made an assessment on service delivery, financial management, organisational

development, good governance challenges faced by the Municipality, which provided

rational and justification for the invocation of section 139(1)(c) of the Constitution.

35.8 The Select Committee has noted with concerns that the Municipality has in terms of municipal

audit outcomes failed to put in place an effective system of internal control for consumer

debtors and revenue as required by section 64(2)(f) of the MFMA. Furthermore, the Select

Committee noted that some of the fruitless and wasteful expenditure incurred by the

Municipality were not investigated timeously, to determine if any person is liable for the

expenditure, as required by section 32(2)(b) of the MFMA.

 35.9 Measures to combat the abuse of the SCM system were not implemented as per the

requirements of SCM regulation 38(1), because some of the contracts were awarded to

providers who during the last five years, failed to perform satisfactorily on a previous contract

with the other organ of state.

35.10 An effective system of internal control of assets, including and adequate asset register was not

in place, as there was insufficient accounting over new and completed assets, as required by

section 63(2)(c) of the MFMA.

35.11 Appointments were made in posts which were not provided for in the approved staff

establishment, as required by section 66(3) of the Municipal Systems Act.

 

 

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35.12 The existence of special circumstances is a prerequisite to the exercise of the power to dissolve

a municipal council. Dissolution should be an appropriate step to remedy the situation, if

exceptional circumstances exist, and such intervention was due to the unwillingness of the

municipal council to resolve the problems concerned.

35.13 Given the collapse of council meetings, leadership challenges, vacant position of City

Manager, EXCO, water challenges, non-establishment of Ward Committees amongst others,

paralysed the administrative and political capacity of the Municipality to manage its affairs

and to deliver basic services to its residents, and provide accountable government for the

people of Tshwane. It is submitted that the decision to intervene in terms of section 139(1)(c)

of the Constitution under these circumstances, is justified and warranted that exceptional cases

existed, since all forms of support in terms of other interventions were exhausted.

35.14 The Select Committee has noted during its deliberations on the matter, the majority of political

parties in the Committee supported the intervention on the basis of the substantive, procedural

and constitutional matters in the Municipality. The Democratic Alliance (DA) stated that its

rejection of the report, together with its recommendations, be noted.

36. Recommendations

36.1 Having conducted the oversight visit to the City of Tshwane Metropolitan council and

interacted with internal and external stakeholders, acknowledging the statement made

by the President of the Republic of South Africa on measures to combat COVID-19, the

Select Committee on Co-operative Governance and Traditional Affair (Water, Sanitation

and Human Settlements), recommends as follows:

36.1.1 The NCOP approves the intervention in the City of Tshwane Metropolitan

Municipality in terms of section 139(1)(c) of the Constitution.

36.1.2 The Administrator should fast-tract the process of appointing and filling of the

position of City Manager.

36.1.3 A seasoned, competent and capable administrator should be appointed in the City

of Tshwane, and supported by a team of experts, with clear Terms of Reference.

 

 

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36.1.4 The MEC of Human Settlements, Urban Planning, Cooperative Governance and

Traditional Affairs should institute a forensic investigation in term of section 106

of Local Government: Municipal Systems Act (Act 32 of 2000), on all allegations

of corruption and financial mismanagement, and table a report to the NCOP and

the Gauteng Provincial Legislature.

36.1.5 The MEC of Human Settlements, Urban Planning, Cooperative Governance and

Traditional Affairs quarterly report to the NCOP on the status of the intervention

in the Municipality, including the termination report.

36.1.6 The Select Committee on Co-operative Governance and Traditional Affairs

(Water, Sanitation and Human Settlements) should, in co-operation with the

relevant Portfolio Committee in Gauteng Provincial Legislature, conduct a

follow-up oversight visit after the by-election to the Municipality, in order to

evaluate the progress made in respect of the intervention in the Municipality.

36.1.7 The Independent Electoral Commission (IEC), should develop an implementation

plan on by-election, taking into account the Presidential Statement made on 15

March 2020, on measures to combat COVID-19, in order for the IEC to facilitate

free and fair elections.

Report to be considered.