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SALGA Constitutional Amendments 2012

Special National Conference

10-11 September 2012

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Presentation Outline

1) Introduction and Background – Process & Consultation– Historical Context of SALGA

2) Overview of Current Constitution, Rationale for Amendments and Key Proposed Areas for Amendment

3) Consideration of Proposed Amendments

Part (i): Relationship between SALGA & its members

Part (ii): Governance Structures

Part (iii): Transitional Arrangements & Rules of Procedure

4) Recommendation

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1.Introduction: Process and Historical Context

of SALGA (informing Constitutional

Amendments)

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1. Introduction

• In order for LG to participate effectively in IGR system, it needs to act as a collective, through an organised LG structure.

• S163 of the Constitution, recognises OLG as the legitimate voice for LG and affords it representation in key national institutions & structures.

• This mandate defines SALGA as the voice and sole representative of the sphere of LG, including lobbying and advocacy on behalf of LG in relation to national policies and legislation.

• SALGA was established in 1996 and was recognised by the Minister as the national organisation representing LG from January 1997. • Minister recognised national and provincial associations.

• SALGA is a voluntary body representing all 9 provincial LG associations. – SALGA’s official status stems from its recognition by the Minister.

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1.1 Background (Process)

• The current Constitution of SALGA regulating its governance affairs was last amended and adopted by the National Conference held in 2007.

• In order to optimise organised LG’s participation in key nat and prov structures, NEC of SALGA established a Political Steering Committee in 2009, which was tasked with considering, inter alia, issues pertaining to OLG requiring review.

• Thereafter, the 2009 NMA discussed the key issues pertaining to OLG requiring review and resolved that provinces must make inputs on the following recommendations: – Affirmation of SALGA as a unitary structure; – Organised Local Government Act to reflect that unitary structure; and– Idea of full-time leadership at both national and provincial levels for OLG.

• The NMA also resolved that a study be undertaken on how best to create a pool of experienced cllrs for deployment to assist LG and organised LG. 5

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Background (Process)

• The 2010 NMA (in Commission 6) the review of OLG and preliminary proposals in this regard.

• In particular, it focused on an assessment of SALGA’s gov structures, the findings thereof & initial proposals for restructuring OLG, as well as the proposed revenue enhancement model for SALGA.

• The NMA accordingly resolved to:– Note the findings of the assessment of SALGA’s governance

structures; and– Note the proposals on Review of OLG & amendment of the SALGA

Constitution for final resolution at the 2011 National Conference.– Flowing from the findings and recommendations of the governance

assessment and Provincial Conferences, the following is a consolidated position of the proposals for constitutional amendment .

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Background (Process)

• NEC Political Steering Committee comprised of Office Bearers and Provincial Chairpersons to oversee the amendments process leading up to the National Conference (originally to be dealt with in 2011).

• Constitutional amendment proposals (with explanatory document) was circulated to Provinces for the consideration of Prov Conferences.

• Provincial Positions (as adopted by the Provincial Conference) were submitted to the Political Steering Committee for consideration.

• Process of consolidating the inputs received culminates in the following proposals which received sufficient consensus for inclusion in this set of Proposals for consideration by Special Conference. – Where 1 or 2 provinces were in favour and the rest rejected a proposed

amendment, for example, it is not included. • NB: This does not mean these proposals necessarily meet the criteria

(principles) informing amendments (set out below), but merely means that it met sufficient consensus for inclusion. The thinking may have shifted.

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1.2 SALGA Historical Context

• As far back as 1999, SALGA has demonstrated a political preference for a unitary structure for OLG, i.e. one structure that is governed through a single Constitution.

• The thinking and deliberation within SALGA has been that for OLG to be representative of LG, it needs to speak with one voice.

• SALGA National Conference held from 4 to 7 April 2001 resolved, inter alia, to realign the priorities and structures of OLG to reflect the day-to-day challenges of its member municipalities and to develop OLG’s capacity to intervene and capacitate its membership.

• PFMA Background– Listing of SALGA as a Schedule 3A public entity – NEC role (as accounting authority of the entity) defined by the imperatives of

the PFMA corporate governance model 8

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Kwanaloga Re-integration to SALGA

• SALGA NEC took decision on 15 February 2008 that “SALGA KZN be allowed to function politically in terms of the Kwanaloga constitution until the end of the current term of office of local government”.

• 2011 KZN Provincial Conference held on 2-5 August at Olive Convention Centre in Durban, adopted a resolution to migrate back to SALGA and rescind the Kwanaloga Constitution with immediate effect – association is henceforth SALGA KZN. – The new PEC was elected in terms of the current SALGA Constitution

(1 Chair, 3 Deputy chairpersons and 6 additional members). • Provincial Conference resolved that all governance and migration issues

(integration of administration, staff, assets etc) be finalised by negotiation and agreement between Salga National and Salga KZN.

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Prio

r to

2000

2000

2004

2007

2011

•The SALGA constitution was amended to give effect to the unitary org.

•The following categories of members were included:

•1)Municipality est. ito Structures Act;

•2) Provincial Assoc’s

•3) Associate members

•Definition of NOB narrowed down to Chair and 2 Deputy Chairs

•The amendments pertained to the functioning of SALGA’s structures and did not alter provisions regarding membership to SALGA

•Definition of NOB expanded to include 3 Deputy Chairpersons

•The proposed amendments pertain to the functioning of SALGA’s structures and do not alter provisions regarding membership to SALGA

•Significant changes on the composition, size & power distribution between various SALGA governing structures

Constitutional Trajectory & Evolution of SALGA

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2. Overview of Current Constitution, Rationale for

Amendments & Key Proposed Areas for Amendment

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2. Overview of Current Constitution (2007)

• The Constitution of SALGA assumes that the political leadership (National Conference, National Members Assembly, National Executive Committee and National Office Bearers) is responsible for policy matters and outcomes (including approval of budgets and business plans of the organisation)– While the administration (under the leadership of the Chief

Executive Office as the head) is responsible for outputs and implementation of inter alia the approved budget and business plan of the organisation.

• Key areas governed in Constitution, including the composition, status and meeting intervals of all governance structures, is highlighted here.

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Governance Structures of SALGA

(i) National • National Conference • National Members Assembly • National Executive Committee

(ii) Provincial • Provincial Conference • Provincial Members Assembly • Provincial Executive Committees

(iii) Decision-making within SALGA Governance Structures

(iv) Provisions applicable in case of Amendment of Constitution 13

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(i) National Conference

• Highest decision making authority of SALGA. • Must meet within 90 days after general LG election. • NC must:

– Elect members of the NEC; – Establish and review SALGA’s oversight bodies as required by

law; – Consider audited financial statements, – approve SALGA’s programme of action, business plan and budget;

and – review SALGA’s financial performance.

• All member municipalities have 1 vote. 14

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National Members Assembly

• NMA is 2nd highest decision making authority (after Nat Conference), exercising authority of SALGA between National Conferences.

• Is called annually, except in year of National Conference. – Special NMA must also be called upon request of NEC or majority of

members.

• NMA must: – Give effect to decisions of National Conference; – Consider audited financial statements;– Adopt programme of action, business plan and budget; – Review SALGA’s financial performance; and– Consider reports of working groups and oversight bodies.

• All member municipalities have 1 vote. 15

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National Executive Committee

• NEC exercises authority of SALGA between National Conferences and National Members Assemblies.

• It is comprised of: – Chairperson of SALGA; 3 deputy chairpersons;

– 6 additional members elected directly by the National Conference.

– It also consists of the Provincial Chairpersons of SALGA, who are ex officio members of the NEC, the CEO (ex officio) and any co-opted members (up to a maximum of three).

• NEC shall: – Meet at least once every two months;

– Exercise day-to-day executive authority;

– Give effect to directions/ decisions of the National Conference and/ or National Members Assembly;

– Submit reports of its activities to the National Conference or National Members Assembly; and

– develop, review and adopt SALGA’s administrative policies.

• The powers given by the Constitution to the SALGA NEC give effect to the PFMA. 16

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(ii) Provincial Conference

• Highest decision making authority of provincial member of SALGA. • Must meet within 60 days after general LG election, but at least 30

days before National Conference. • Prov Conference must:

– Elect members of the PEC; – Approve the provincial programme of action, business plan and

budget; and– Establish and review oversight bodies (where applicable) as may

required by law. • All member municipalities have 1 vote.

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Provincial Members Assembly

• PMA is 2nd highest decision making authority of provincial member association (after Provincial Conference), exercising authority of the provincial member association between Provincial Conferences.

• Is called annually, except in year of Provincial Conference. – Special PMA must also be called upon request of PEC or majority of

members. • NMA must:

– Give effect to decisions of Provincial Conference; – Adopt provincial programme of action, business plan and budget; – Consider reports of provincial working groups and oversight bodies; – And deal with any other issues emanating from the Constitution.

• All member municipalities have 1 vote. 18

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Provincial Executive Committee

• PEC exercises authority of provincial member association between Provincial Conferences & Provincial Members Assemblies.

• It is comprised of: – Provincial Chairperson; 3 deputy chairpersons;– 6 additional members elected directly by the Provincial Conference; and– any co-opted members.

• PEC shall: – Meet at least once every two months; – Exercise day-to-day executive authority of the provincial member association; – Table reports of its activities to the NEC quarterly. – Give effect to directions/ decisions of the Provincial Conference and/ or Provincial

Members Assembly; – Submit reports of its activities to the Provincial Conference or Provincial Members

Assembly; and– Where applicable, develop, review & adopt provincial association’s administrative

policies. 19

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(iii) Decision-making within SALGA Governance

Structures • Notwithstanding the provision made for voting in SALGA

Governance Structures in the various clauses of the Constitution, in particular the Annexures on proceedings…

• Decision-making within SALGA Governance Structures have always been underpinned by the principle of seeking and achieving CONSENSUS

• Notwithstanding that, the Constitution must provide clear principles for decision-making in the event that consensus cannot be reached. 20

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(iv) Provisions applicable to Constitutional Amendments

• In terms of clause 19 of the current SALGA Constitution, only the National Conference, duly convened, has the status and authority to amend the Constitution.

• In so doing, clause 19 states that the Constitution may only be amended by giving 21 days written notice of the proposed amendments to members and any amendment must be approved by two-thirds of delegates entitled to vote at the National Conference.

• Clause 19(2) provides that no amendment to the SALGA Constitution shall be of any force or effect until certified in terms of subsection (3) of section 101 of the Labour Relations Act 66 of 1995, as amended. 21

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2.2 Why Amendments

– Rationale • SALGA is expected to be active in various IGR forums, to provide

policy direction & substantive positions on numerous issues, and to articulate & defend all LG interests.

• Effective participation in the IGR system requires substantial & representative political leadership if SALGA is to assert itself as voice of LG.

• In last decade, numerous additional lGR forums/ structures have emerged.

• The legitimacy of SALGA as the sole representative voice of LG, and all its categories, has sometimes been called into question.

• In particular, the challenges of effective participation in the NCOP require special attention.

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Rationale for Amendments

• In order to fulfil its constitutional mandate, amendments to the Constitution of SALGA is critical at this juncture of its journey.

• A strong, representative association being widely representative of the interests of its members is an absolute necessity to provide the necessary leadership and support to municipalities.

• Indeed, if all the dynamics, developments and challenges facing LG are to be negotiated it is critical for SALGA to have a strong Constitution and governance architecture in place; one that is geared towards ensuring that it is able to represent, promote and protect the interests of LG.

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Rationale for Amendments

• Consequently, maximising our participation in the NCOP and ensuring effective representation in our governance structures is of paramount importance if the we is to respond to diverse challenges facing the various categories / types of municipalities.

• In the main, the proposed amendments are focused on: – enhancing the inclusivity and legitimacy of decision-making; – Improving Parliamentary representation of OLG; and– Improving the governance arrangements of SALGA.

• Ultimate aim is to improve the representivity, legitimacy, discipline and rules of procedure of SALGA.

• All proposed amendments which follow should meet these principles.

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2.3 Key proposals for Amendment

(i) SALGA’s relationship with its members • Role and Mandate (revised)• Members’ Compact (new)• Code of Conduct (revised) • Membership Fees and Levies• Participation and voting (revised article - combined)

(ii) Governance Structures • National Members Assembly• National Executive Committee • Provincial Executive Committees • Working Groups (new)

(iii) Transitional arrangements and Rules of Procedure • Transitional Arrangements (new)• Rules of Procedure (revised)

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3. CONSIDERATION OF PROPOSED CONSTITUTIONAL

AMENDMENTS

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3.1 Consideration of Amendments

Part (i): SALGA’s relationship with its members

This section deals with the following proposed amendments:

• Role and Mandate (revised)• Members’ Compact (new)• Code of Conduct (revised) • Membership Fees and Levies• Participation and voting (revised article - combined)

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Role and Mandate

• The current clause 4 lists the objectives of the organisation. • Proposal to rename the section and include the ff objectives as the Role &

Mandate article (in addition to the objectives already listed in the current Constitution):

– Develop common approaches for LG as a distinct sphere of govt;– Enhance cooperation, mutual assistance and sharing of resources among

municipalities;– Find solutions for problems relating to LG generally;– To increase knowledge sharing and improve the communications capacity as

well as vertical and horizontal connectivity of OLG and municipalities; – To ensure that South African LG plays a critical role in furthering Africa’s

development at regional, continental and international levels;– Ensure the full participation of women in OLG, including striving for parity

(50%) of representation in its governance structures.

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CURRENT PROVISION

• Objectives (Clause 4) - Represent, promote and protect, the interests of LG;- Transform LG to enable it to fulfil developmental role;- Enhance the role and status of its members...;- Enhance the role and status of municipalities;- Be recognised by national and prov govts (remove):- Be the National Employers’ Association representing all municipal members and...associate members;- Regulate the relationship between its members and their employees...;- Encourage the settlement of disputes among its members and between them and their employees or trade unions...;- Affiliate with and participate in the affairs of any international organisation...;- Do such lawful things as may appear to be in the interest of the organisation and its members...; and- Borrow, invest, lend, subscribe or donate money for the furtherance of the objectives of the organisation.

PROPOSED AMENDMENT

• Role and Mandate (Article 3) Proposal to include the following objectives in the Role & Mandate article (in addition to the objectives already listed in the current Constitution):

- Represent, promote and protect, the interests of LG in the IGR system;- Develop common approaches for LG as a distinct sphere of government;- Enhance cooperation, mutual assistance and sharing of resources among municipalities;- Find solutions for problems relating to LG generally;- To increase knowledge sharing and improve the communications capacity as well as vertical and horizontal connectivity of organised local government and municipalities; - To ensure that South African local government plays a critical role in furthering Africa’s development at regional, continental and international levels;- Ensure the full participation of women in OLG, including striving for parity of representation…

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Members’ Compact

Problem Statement: • There is currently no provision in Constitution dealing with rights and obligations of

members. • There is a need to spell out clearly the rights & obligations of members (rationale).

New article (5) is proposed as follows: • Members shall, subject to this Constitution, be entitled to:

– Participate in the various activities and programmes of SALGA; – Have equal access to information, data and documentation on LG matters; – Have equal access to the activities and decisions of SALGA.

• Members shall abide by the Constitution and resolutions of its constitutional decision-making structures, and shall comply with membership commitments in terms hereof.

• Disputes between SALGA and any member or members must be declared in writing and set out the grounds of the dispute and proposed resolutions.

• Dispute resolution procedures are provided for in the Rules of Procedure annexed to this Constitution.

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Code of Conduct

Problem Statement: • The current provisions on discipline regulate in the main the expulsion or suspension

of members if “it fails to pay membership fees, fines or levies and remains in arrears for a period of 30 days from the date of demand in writing by the head of the administration”. – These extreme measures (suspension or expulsion) are not likely to be invoked.

• The effect is that members who are currently not in good standing have full participation rights in SALGA structures and events. It cannot be the case that members who refuse or are long in arrears with their membership levies, for example, receive the same benefits as members who are in good standing.

• Also, in light of the insertion of an article on Members’ Compact, it is here proposed that some provision is made for non-fulfillment of member obligations and adherence to the Constitution, which is necessary to maintain discipline and ensure the long-term sustainability and effectiveness of the Association.

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Code of Conduct

Rationale for Amendment: • There is a need for comprehensive approach to dealing with

discipline in the organisation, incl. defining what constitutes breaches or offences.

Proposed that the Constitution provides for: • The Code of Conduct shall be applicable to all members. • A separate Code of Ethics shall apply to elected NEC and PEC

members as set out in Annexure… • The NEC or a PEC shall establish ad hoc Disciplinary

Committees, as and when the need arises, for the purpose of enforcing the Code of Conduct and disciplining members.

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CURRENT PROVISION

• Discipline (Clause 6) - The current provisions on discipline regulate in the main the expulsion or suspension of members if “it fails to pay membership fees, fines or levies and remains in arrears for a period of 30 days from the date of demand in writing by the head of the administration”.

- These extreme measures (suspension or expulsion) are not likely to be invoked.

PROPOSED AMENDMENT

• Code of Conduct (Article 6) - This Code of shall be applicable to all members. - The NEC or a PEC shall establish ad hoc Disciplinary Committees, as and when the need arises, for the purpose of enforcing the Code of Conduct and disciplining members. - The decisions of such Disciplinary Committees shall be appealable to the NEC or PEC, as the case may be, whose decision is final except for suspension and expulsion. - NEC itself may also instigate disciplinary proceedings.- Disciplinary proceedings against a member shall be confined to violations of the SALGA Constitution or Code of Conduct, or commission of offences.  - All disciplinary proceedings shall be conducted in accordance with Annexure … (Disciplinary Procedures)

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Membership Fees and Levies

Problem Statement: • Current Constitution provides for payment of levies by members, as determined by National

Conference from time to time – no clarity or guiding principles which inform such a determination. • 5 Year interval between Conferences also renders any changes in the intervening period impossible.

Therefore proposed to amend the existing provisions as follows: • The NEC shall, in consultation with PECs, formulate a policy to regulate the determination of

membership fees. • The NEC shall further determine the fees due by each category of member on a multi-year

basis, which shall be reviewed annually.• The formula in terms of which such levies are calculated shall be circulated to all members by

no later than the last day of December of the year prior to which the new or reviewed levies will be applicable.

• Membership fees and levies determined be due and payable by members on 1 April to 31 July and shall be payable to SALGA at its national office.

• A member who fails to pay levies shall remain a member with lesser rights, surrender voting rights and right to election to executive posts, until all due membership levies have been paid.

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CURRENT PROVISION

• Membership Fees and Levies (Clause 8) - Each member, except a provincial association, shall be liable to pay membership fee and/or levies. - Membership fees and levies determined in terms of clause 7.1 above shall be due and payable by members on 1 April but before 31 June of that calendar year and shall be payable to SALGA at its national office. - Any levy payments not received within this period will be subject to interest in terms of the relevant legislation. - In addition to membership fee or levy payable in terms of clause 7.1 above, a member shall also be liable for the payment of such other fees as may be prescribed in terms of the rules governing any fund.- All money received by SALGA from membership fees, levies and other sources shall be used in pursuance of its objectives as set out in article 3 above.

PROPOSED AMENDMENT

• Membership Fees and Levies (Article 7) Two new sub-articles were proposed as follows:

- The NEC shall, in consultation with PECs, formulate a policy to regulate the determination of membership fees. - The NEC shall further determine the fees due by each category of member on a multi-year basis, which shall be reviewed annually.- The formula in terms of which such levies are calculated shall be circulated to all members by no later than the last day of December of the year prior to which the new or reviewed levies will be applicable.

Amend existing provisions as follows: -Membership levies determined shall be due and payable by members on 1 April to 31 July...- A member who fails to pay levies shall remain a member with lesser rights, surrender voting rights and right to election to executive posts, until all due membership levies have been paid.

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Participation and Voting

Problem Statement: • The current article 10 entitled ‘votes of members’ deals in a minimalist

fashion with voting and to an even lesser extent with participation.

Rationale for Amendment: • Participation and voting must be collapsed into one article to deal

comprehensively with participation in governance structures and voting therein.

• Different categories of municipality, and their contribution to SALGA, renders the one-vote principle ‘unfair’.

• Need a formula that ensures proportionality and acknowledges the diversity and representivity of the organisation’s members.

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CURRENT PROVISION

• Votes of members (Clause 10)

- Each municipal and provincial member shall have 1 (one) vote at the National Conference or NMA;

- Each member shall be entitled through its representatives to participate in sessions of the National Conference or NMA by speaking, expressing its opinions and submitting proposals;

- Associate members shall enjoy no voting rights in the National Conference and NMA.

PROPOSED AMENDMENT

• Participation and Voting (Article 8)

- Each member shall be entitled to vote in decision making structures of SALGA according to a formula to be adopted by the NEC; - Notwithstanding that, each member shall be entitled to at least one vote in decision making structures of SALGA;- Each member shall be represented in the NC or NMA by a number of delegates who will be entitled to vote in accordance with the formula determined by the NEC, and who shall present their credentials as such to the Secretariat at the commencement of the session, including identifying the head of delegation who shall exercise the right to vote; and - A member may send such additional delegates, up to a maximum prescribed by the NEC, who may attend the NC or NMA, but may not vote.

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3.2 Consideration of Amendments

Part (ii): Governance Structures of SALGA

• National Members Assembly

• National Executive Committee

• National Working Committee (Sub-structure of NEC)

• Provincial Executive Committees

• Working Groups (Advisory)

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3.2.1 National Members Assembly

Problem Statement: • The NMA is convened to review SALGA’s financial performance and

adopt SALGA’s programme of action, business plan and budget. • Currently it meets annually and much of the energy of the

organisation is spent on preparation for NMAs and Conferences, with little if any time for implementation of decisions adopted by these governance structures.

• The cycle is such that once an NMA or Conference is over, six months later planning for the next NMA or Conference takes priority.

• The result is that the organisation is constantly reporting on work in progress or begun and not executed decisions... because it has had no time to implement decisions. 39

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National Members Assembly

Rationale for and proposed Amendments: • Bearing in mind the extended NEC meeting, a NMA annually is not

necessary or feasible. • Given the PEC representation of members and annual PMAs, regular

mandates and review by members is critical at provincial level.• Risk that SALGA could continue on inappropriate path for up to 3 yrs is

also mitigated by annual PMAs and provision for an extended NEC in the intervening years.

• It is proposed that: – SALGA shall, at least once in between National Conferences, but

no later than 30 months after the last National Conference, hold a NMA.

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National Members Assembly

Proposed Amendments cont.: • Proposed further that the current article, which provides that the Chairperson

shall call an NMA if there are special circumstances, be amended to provide: that the NEC shall call a National Members Assembly:

• at the written request of the majority of provincial associations containing the reasons for such a request and setting out the matters to be discussed at the proposed meeting; or

• if it resolves that there shall be special circumstances which require an NMA.

• Moreover, the following provision is to be inserted to give greater meaning and value to the NMA: – Adopt positions on key policy & legislative matters impacting on LG, for

action by NEC. 41

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CURRENT PROVISION

• National Members Assembly (Clause 9.2) 9.2.1 – SALGA shall at least annually, save for the year in which the National Conference is due, hold an NMA.

9.2.3 The NMA shall- Act in accordance with directions of the NC; - Consider audited financial statements; - Adopt the SALGA programme of action, business plan and budget as approved by the NEC; - Review SALGA’s financial performance; - Consider reports from WG’s and oversight bodies; - Deal with any other issues arising from the Constitution.

9.2.4 – Notwithstanding anything contained in clause 9.2.1 above, the Chairperson shall call a [special] NMA...in 3 instances as set out.

PROPOSED AMENDMENT

• National Members Assembly (Article 11) It is proposed that: - SALGA shall, at least once in between National Conferences, but no later than 30 months after the last National Conference, hold an NMA.

- Moreover, the following provision is to be added to give greater meaning and value to the NMA:

• Adopt positions on key policy & legislative matters impacting on LG, for action by NEC.

Amendment proposed to provide that the NEC shall call a [special] NMA in only 2 instances: - at the written request of the majority of provincial associations containing the reasons for such a request and setting out the matters to be discussed at the proposed meeting; or - if it resolves that there shall be special circumstances which require an NMA.

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3.2.2 National Executive Committee

Problem Statement/ Rationale for Amendment: • OLG has also not been able to participate effectively in the NCOP (the primary

IGR platform) mainly due to the status and availability of NEC members.

• The recent LG Week debate was in fact the first time in the 15-yr history of SALGA and the NCOP that all 10 OLG seats were filled (and that was due entirely to our presence at the LG Week).

• The commitment of NCOP that the LG Week will be annual and the outcomes thereof will be driven through Select Committees, presents a major opportunity for LG in the oversight process and requires SALGA’s full participation.

• To ensure the optimisation of the participation of OLG in IGR structures and Parliament and indeed confirm SALGA as the sole representative and leader of LG, there is a need for additional NEC members whose sole purpose will be representation in the NCOP and provincial legislatures.

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Designation of Head and Office Bearers

President and Presidency • SALGA has 10 Chairpersons – one national and nine provincial chairs – they

have, for eg., been referred to interchangeably (incorrectly citing the provincial Chair as Chair of SALGA).

• The stature of SALGA as a unitary and national representative body of municipalities requires that we clearly distinguish the provincial chairpersons and office bearers from the national head and office bearers.

• Proposed that the national Chairperson be designated as President; Deputy Chairs as Deputy Presidents; and the Office Bearers collectively as The Presidency.

• Would elevate the stature of SALGA and bring our designation in line with the recognised national, regional and international designation – SALGA as party to continental and global bodies such as UCLGA, UCLG and CLGF would favour such a designation.

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NEC Composition

The NEC is proposed to be comprised of: – The President; – 3 Deputy Presidents; – 6 additional members (directly elected);– 9 additional members, who shall have no vote and shall be appointed

by the NEC in accordance with the Organised LG Act for purposes of Organised LG’s representation in the NCOP (Annex C sets out nomination procedures);

– 9 provincial chairpersons, who are ex officio; – The Head of Administration (ex officio), who shall have no vote; and – Co-opted members (maximum of 3).

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CURRENT PROVISION

• National Executive Committee (Clause 9.3.2)

The NEC shall consist of:

-The Chairperson of SALGA; - 3 Deputy Chairpersons; - 6 additional members; - Provincial Chairpersons of SALGA who shall be ex officio members of the NEC; and - The Head of Administration (CEO)

- The NEC may co-opt no more than 3 (three) additional members.

PROPOSED AMENDMENT

• National Executive Committee (Article 12.3)

The NEC is proposed to be comprised of:

- President - 3 Deputy Presidents - 6 additional members (directly elected)- 9 additional members (one per province), who shall have no vote and be nominated by the PECs in accordance with the Organised LG Act for purposes of OLG’s representation in the NCOP. - Provincial Chairpersons of SALGA who shall be ex officio members of the NEC; and - The Head of Administration (CEO)

- No more than 3 (three) additional members.

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Secretary-General and Treasurer-General?

Role of political Secretary-General and Treasurer General? • In 2001 to 2004, SALGA had these two political portfolios. With advent of PFMA, it

was discontinued and deemed inappropriate in law to have a Treasurer General and Secretary since the Accounting Officer (CEO) is responsible for the administration, preparing reports for the NEC etc. Also has a CFO reporting to Accounting Officer.

• The NEC is the accounting authority of SALGA, it cannot ito the PFMA designate the tasks of the accounting officer (CEO) to itself in form of Treasurer General and Secretary = duplication.

• The PFMA also requires that there must be an audit committee independent of the NEC.

• In other organisations, the Secretary-General is appointed official or is a political person responsible for the administrative affairs of the organisation because it does not have an accounting officer or head of administration.

• It may thus pose serious challenges (apart from the inherent conflict) for SALGA to return to that scenario given the legislative imperatives and practice. 47

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Presidency (Office Bearers)

Rationale and Proposed Amendment: • As a principle, the office bearers must reflect the diversity of

membership of the Association. • It is proposed that the following be inserted in a revision of the current

articles: – There shall be a President and three Deputy Presidents; – Collectively they constitute the Presidency; – The three Deputy Presidents must be comprised of a representative

from each category of municipality, and – The Presidency collectively must be from different provinces to

ensure representivity. In other words, no two members of the Presidency may be from the same province.

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Role of Presidency (Office Bearers)

Presidency collectively shall be responsible for the execution of the ff. functions: - Oversee the implementation of decisions of the NC, NMA and the NEC by all SALGA

governance structures and functionaries; - Present reports on the state and performance of the governance structures of the organisation;- Ensure the implementation and management of the Members’ Compact as provided in this

Constitution; - Present reports on enforcement of the Code of Conduct by relevant SALGA structures; - Ensure effective relationship building with members & resolution of disputes between SALGA

and members; - Politically responsible for the deployment of SALGA representatives to IGR and other

structures, as may be prescribed in the Governance Framework; - Politically oversee the development & execution of the SALGA Strategic Plan for term of NEC; - Politically responsible for communication between the organisation, its members and

stakeholders;- Be politically responsible for overseeing fundraising/ sponsorship plans for SALGA events; and- Perform such other functions as delegated by NEC in accordance with delegations framework.

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NEC Quorum & meeting intervals

Frequency of NEC Meetings:

• Meeting Requirements: – The NEC shall meet at least once every three (3) months.

• An extended NEC, comprising of all NEC and PEC members, shall be convened annually, except in the year that the National Conference or National Members Assembly is scheduled.

Quorum – NEC Meetings: • Meeting threshold:

– 50% + 1.

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NEC Term of Office

Problem Statement: • Lack of certainty regarding status of SALGA representatives post elections and when

leaving LG in transitional periods.

Proposed Amendment: • The NEC members shall serve until the election of the ensuing NEC at the National

Conference, irrespective of whether or not members are re-elected as cllrs. • Before a general LG election, an NEC member will lose his or her position ipso facto if he

or she ceases to be a councillor. • In the case of the 9 additional (Parliamentary) representatives on the NEC, the relevant

PEC must convene a special PEC within 30 days of the vacancy arising, to elect a replacement for such member, and must inform the NEC of the newly elected member within 14 days.

• Any vacancy arising from among directly elected NEC members, other than the provincial representatives, must be filled by the NEC.

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3.2.3 National Working Committee

Problem Statement: • The NEC, given its role as the accounting authority of the entity and reporting

requirements of the PFMA, has often not been able to deal with key policy and strategic matters affecting the sector and requiring its leadership.

• This is largely due to its agenda being consumed by day-day operational and administrative issues, such as the business plan, budget, audit reports etc.

Rationale for Proposed Amendment: • It would be strategic to have a sub-committee, called a National Working

Committee, to assist the NEC to deal with the day-to-day operational and administrative issues.

• This will allow the NEC, when it meets, to focus on the key policy and strategic issues emerging from its National and Provincial Committees and Working Groups, and provide leadership in those areas.

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National Working Committee

Proposed Amendments: • It is proposed that a National Working Committee (NWC) be

established as follows:

– There shall be a NWC comprising of the President, 3 Deputy Presidents and the additional (6) NEC members.

– The NWC shall exercise such powers as may be delegated to them generally or specifically by the National Executive Committee, in accordance with the delegations framework of the organisation.

– The Chairperson of the NWC shall table a report of the Committee’s activities at each National Executive Committee meeting.

– The NWC shall meet once every two (2) months.

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Powers of Prov. Executive Committees

The PECs shall have the power to: • Exercise oversight of the provincial administration, including human

resource management, supply chain management, business planning and the provincial budget, to the extent set out in the delegations framework of the organisation.;

• Determine representation of SALGA in all provincial intergovernmental structures and other provincial forums– Such representatives shall table reports to the Provincial Executive

Committee in accordance with the Governance Framework; • Make representations to provincial government;• Appoint the Chairpersons of Provincial Working Groups from amongst

additional or co-opted members;54

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Powers of PECs Cont.

• PECs may also create such other sub-committees and as may be necessary to assist it in the execution of its duties, as outlined in this Constitution, Delegations Framework and Governance Framework of SALGA;

• Each PEC may establish a Provincial Working Committee comprising of its office bearers and such other PEC members, up to a maximum of three (3); and

• The PEC may also, from time to time, entrust to and confer upon the PWC such of the powers vested in it by this Constitution and in accordance with the delegations framework of the organisation.

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PEC Term of Office

Rationale for Amendment • To provide certainty on term of office and circumstances of loss of

membership of PEC members.

Proposed Amendment: • The PEC members shall serve as such until the election of the ensuing

Provincial Executive Committee at the Provincial Conference, irrespective of whether or not members are re-elected as cllrs.

• Before a general LG election, a PEC member will lose his or her position ipso facto if he or she ceases to be a councillor.

• Any vacancy, which occurs in the office of any of the office bearers and/or additional members, shall be filled by the PEC.

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3.2.5 Working Groups

Problem Statement:• Although not governed in the Constitution, one of the most important governance

structures for consultation in the decision-making process of SALGA is the Working Groups.

• As such, it is proposed that the composition, purpose and objectives of working groups be governed by the Constitution, with the Governance Framework then providing for its procedures and technical processes.

Proposals for Amendment: • It is proposed that a new article be inserted, entitled “Working Groups”. • In recognition of the important role these structures will play in influencing SALGA’s

strategic and policy agenda, it is proposed that definition of a working group be amended to read as follows: – “Working Groups means the governance structures established to make

strategic and policy recommendations to the NEC or PEC as the case may be.”

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Working Groups Cont.

Purpose and objectives of working groups: – facilitate coordination, consultation and inclusive decision-making between SALGA and

its provincial and municipal members; – serve as a forum through which OLG members can consult with one another, at a

political level, to contribute in so far as providing recommendations, ideas, advice, political insight and support on the assigned areas of focus to SALGA‘s political governance structures, namely the NEC and PEC.

Functions of the Working Groups: – discuss and develop policies, strategies and programmes to address critical LG issues; – monitor the process of LG policy conceptualisation, design and implementation; – effect meaningful participation of Working Group members in political and

intergovernmental structures as mandated by SALGA; – within the Strategy of SALGA, facilitate the determination of OLG priorities, which

should be pursued in the short, medium and long term; and – make strategic and policy recommendations to the NEC or PEC, as the case may be.

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Working Groups Cont.

Composition:– The WGs (nat and prov) are established by national and provincial Executive

Committees respectively, with the chairpersons of the WGs appointed from amongst the NEC and PEC members, as the case may be.

– In determining the number of WGs, the NEC shall have due regard to the role and mandate of SALGA.

– The National WGs shall comprise of the Chairperson and all nine provincial working group chairpersons of that portfolio.

– Each provincial member shall be entitled to representation on the Provincial Working Groups.

– Members of provincial working groups should, as far as is possible and practical, serve in the portfolio of the municipality that mirrors the Working Group title.

– Since WGs are advisory structures to the decision-making structures of SALGA, a lesser quorum (35%) shall apply in WG meetings.

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3.3 Consideration of Amendments

Part (iii): Transitional Arrangements and Rules of Procedure

• Transitional Arrangements

• Certification of Amendment

• Rules of Procedure (Annexes)

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Transitional Arrangements & Certification

Problem Statement: • Currently, Constitution makes no provision for transitional arrangements in event

of amendments to Constitution and governance structures. It was PROPOSED that the following be inserted to make provision fortransitional arrangements:

– During the year of a NC when the Constitution is eligible for review and the Constitution of SALGA is amended, and such amendment has an impact on the structures or composition of the governance structures at provincial or national level, the NEC must adopt transitional arrangements aimed at giving effect to the approved amendments.

– The business of a National and Provincial Conference in such case shall be conducted in accordance with the provisions of the Constitution in effect at the time of the National or Provincial Conference.

• Clause 19(2) provides that no amendment to the SALGA Constitution shall be of any force or effect until certified in terms of section 101 (3) of the LRA, as amended.

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General Rules of Procedure

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Rules of Procedure

Annexure B: Conduct of elections to SALGA Governance Structures

The process includes the following principles:

• National Conference voting delegates will vote only for the directly elected NEC members, being 4 (four) candidates for the Presidency, including the President and Deputy Presidents, and the six (6) additional members.

• All categories of municipality must be represented among the Presidency. • Deputy Presidents must include a metro, district and local representative.• All four (4) members of the Presidency must be from different provinces. • In the event that a provincial chairperson is elected at the Nat Conference to

be national President, (s)he shall automatically relinquish chairpersonship of the Province.

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Rules of Procedure

• Each province shall nominate no less than three (3) persons (as per OLG Act) for designation as representatives to participate in the NCOP, from among whom the NEC will designate 9 members (1 per province) as OLG representatives to the NCOP and to participate in prov legislatures.

• In nominating the additional three (3) provincial representatives, all categories of municipality prevalent in the province should be represented.

• But for Provincial Chairpersons who are ex officio, no member of a PEC may hold dual portfolio’s ie. be a provincial and national Executive Committee member at the same time. – If a PEC member is directly elected as a national member of the NEC, such

member shall relinquish (automatically) his or her provincial position. – A special PEC meeting must be convened within 30 days of the vacancy

arising (in this case, of the NC), to elect another PEC member to fill any vacancies.

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Rules of Procedure

Annexure E: Code of Ethics for elected NEC and PEC members

• This Annex sets out Code of Ethics for elected NEC and PEC members and procedures for breaches of the same Code of Ethics.

• Premised on the oath of office that such elected members take upon election by the National and Provincial Conferences respectively.

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Rules of Procedure

Annexure F: Dispute Resolution between SALGA and its members

• This Annex sets out an internal dispute resolution procedure to resolve disputes between SALGA and its members regarding their “rights, duties or liabilities” in terms of this Constitution.

• This procedure is an “internal” dispute resolution mechanism and must be distinguished from “alternative” dispute resolution.

• Its purpose is to provide a mechanism for members to resolve disputes with the Association, and does not apply to disputes between members, save as provided in the Annex.

• The procedure may be invoked by a provincial member or any individual municipal member with either its provincial association or the national association directly.

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Rules of Procedure

Annexure G: Disciplinary Procedures• This Annex sets out disciplinary procedures for breaches of the

Code of Conduct articulated in Article 6. • Sets out the process to be followed when disciplinary proceedings

are instituted against members. • Also provides for procedures in event of suspension or

expulsion of members and appeals. • Disciplinary proceedings cannot be instituted against a member

who has lodged a formal dispute with the Association, until such time as the dispute has been resolved in accordance with the dispute resolution mechanisms set out in Annexure... 67

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4. Recommendation

The National Conference is invited to:

– Discuss the proposals for amendment of the SALGA Constitution and application of the current Constitution in the Special Conference, including transitional arrangements.