Minister Des Van Rooyen: Third Presidential Local Government Summit

Address by the Minister of Cooperative Governance and Traditional Affairs, Minister Des Van Rooyen, on “Building on back to basics: Towards developmental local government,” at the Gallagher Convention Centre, Midrand

His Excellency, President Jacob Zuma,
Speaker and Deputy Speaker of the National Assembly,
Chairperson and Deputy Chairperson of the National Council of Provinces,
All Ministers present,
Premiers, Deputy Ministers, members of Parliament and MECs,
Chairpersons of the CoGTA Portfolio and Select Committees;
Traditional Leaders present;
Leadership of SALGA, South African Cities Network and Municipal Demarcation Board
All mayors, Municipal Speakers and Chief whips,
Municipal Managers, CFOs and Technical Directors present,
Directors-General present,
Head of Departments for provincial CoGTAs,
Members of the National Planning Commission,
Municipal unions: SAMWU and IMATU,
Leadership of the South African Planning Institute, Institute of Municipal Financial Officers; Integrated Urban Development Framework and the South African Institution of Civil Engineering;
Distinguished guests,
Ladies and Gentlemen,
Fellow South Africans,

Good Morning and a warm welcome to all of you.

This year marks the centenary of the birth of President Oliver Reginald Tambo, one of the most outstanding leaders to be produced by our country and continent. In his honour 2017 has been declared the Year of Oliver Reginald Tambo. It is the year of unity in action by all South Africans as we move South Africa forward.

President Tambo was a solutions-oriented leader who always sought to move forward on the basis of building consensus among all forces. He was greatly admired among his contemporaries for his ability to bring together people with different views on both strategic and tactical questions. One of the things that set him above many was his spirit of self-sacrifice. As we recall the wisdom of this unifier and giant leader of our liberation struggle, we can state that he represents the calibre of leadership we need on all levels of society and spheres of government.

Speaking at Georgetown University, Washington DC on 27 January 1987, President Tambo said: “We seek to create a united Democratic and non-racial society. We have a vision of South Africa in which black and white shall live and work together as equals in conditions of peace and prosperity. Using the power you derive from the discovery of the truth about racism in South Africa, you will help us to remake our part of the world into a corner of the globe on which all – of which all of humanity can be proud."

We can today look back with pride at the road we have travelled over the past 30 years, in our fight for democracy, equality and non-racialism.

A large percentage of the invited participants here today are newly elected or returning councillors.

You are thus the living proof that South Africa's transition from apartheid to a democratic local government has been a success.

Another section of those of us gathered here today are directly representing local government administrations, and can testify to the fact that, by-and-large South Africa has indeed built its range of democratic institutions, transformed the public service, and  extended basic services.

Notwithstanding significant progress, our country remains divided, with opportunities still shaped by the legacy of apartheid. Too many people are trapped in poverty and South Africa is, and remains, a highly unequal society. In particular, many young people and several women are denied the opportunities to lead the lives that they desire.

Legacy

Apartheid policies resulted in the underdevelopment of black communities and settlements. As a result, we face a huge backlog in all areas of infrastructure.

Changing this legacy will take a long time.

The statistics don’t lie – South Africa is undoubtedly a world away from the place it was 23 years ago when the ANC took power in the first democratic elections. Millions of people who were shut out of the government system now have access to basic services and the state machinery.

Our Constitution obliges all of us to partake in providing basic services to vulnerable communities

Alongside the South African Constitution, the policy framework for Developmental Local Government remains one of the best in the world. The driving vision of building developmental and responsive municipalities through active collaboration between the state, civil society, business and ordinary residents, remains as radical as ever.

This policy vision makes municipalities the places where a just and more equitable South Africa must be shaped and take root.

Municipalities are where apartheid’s settlement geography must be confronted, where the trade-offs involved in addressing poverty and investing in growth must be made, where a new and more cohesive society must be borne.

This Summit’s overarching theme of: “Transforming Municipal Spaces for Radical Social and Economic Development” captures the objectives of Government’s Back-to-Basics approach in one sentence.

Local Government is the sphere of government where concrete expression is given to our constitutional democracy, where social justice and the protection of human rights are protected.

Critical to local government’s mandate is the requirement that they work to improve the lives of all the citizens in their municipality.

The improvement of the peoples’ lives can be achieved through the provision of basic services, development and growth of the economy, recognising and harnessing the skills potential of people living in the municipality, job creation, and mobilising the people to make their own contribution to improve their living conditions.

Before I present to you my views on the progress achieved in phase 1 of the B2B programme, let us briefly consider how the Constitution defines an ideal municipality.

An ideal municipality should:

  • Provide democratic and accountable government for local communities;
  • Be responsive to the needs of the local community;
  • Ensure the provision of services to communities in a sustainable manner;
  • Promote social and economic development;
  • Promote a safe and healthy environment;
  • Encourage the involvement of communities in the matters of governance;
  • Facilitate a culture of public service and accountability amongst its staff; and
  • Assign clear responsibilities to the municipal management, and ensure the coordination of administrative units and mechanisms.

Given this Constitutional and legislative mandate, what makes a municipality to be a good municipality?

A good municipality has:

  • Political and administrative stability;
  • Functional council and council structures and healthy political and administrative relations and interfaces;
  • An alignment of budget allocations with the Integrated Development Plans, such as through grant and Capex expenditure: and ensures that 7% of the budget is allocated for maintenance;
  • Sound financial management: clean/unqualified audits; effective internal controls, prudent spending, as well as revenue generation measures;
  • Consistency in the delivery of services, and will continuously make sure that there is an ongoing  improvement of quality of services; 
  • Sound institutional management: clear policy and delegations frameworks, capable staff, transparency, accountability and consequence management, and have a total intolerance to corruption; and
  • Make certain that there is consistent community involvement and that the community is satisfied with the municipality’s actions.

Ladies and Gentlemen,

While we live in a constitutional democracy, we also reside in a country that recognises the value that traditional leaders bring to the smooth functioning of this democracy.

Over the past year, Government has worked closely with traditional authorities on a number of development related issues.

Traditional leaders in rural communities have a significant level of trust placed on them by their people. They have the ability to direct behaviour and decisions, and exercise their influence by engaging in activities such as solving disputes and managing resources.

Traditional leadership has a crucial role to play in the extension of democracy and accountability to our traditional communities. It is of critical importance for municipalities to make appropriate space for traditional leaders in matters of governance that affect them.

These leader’s and authorities are essential political, social and economic structures for maintaining the socio-political order that is a prerequisite for rural development. Any endeavour to create a full democratic society in South Africa must utilise the intrinsic strengths of traditional leaders.

Constructively, Traditional Leaders have, in keeping with the times, embraced the mantle of development. There are a multitude of success stories in different provinces that tell of development championed by traditional leaders to improve the lives of their communities

We further commend and recognise the good work that traditional leaders are doing, on a day to day basis, to advance socio-economic development in their communities. There are a number of far-sighted traditional leaders who use land for advancing economic development within their communities.

The Back-to-Basics campaign therefore calls for municipalities and traditional leaders to work in partnerships to address issues of development related to land use management, release of land for development, and overall development of rural traditional communities.

The involvement of traditional leaders in the Councillor Induction Programme has added a new dimension to the effectiveness of traditional leaders in the interactions at local government level. I believe that further participation and clarification of the roles of traditional leaders in the local government sphere will ensure greater accountability to citizens.

Back-to-Basic: Its foundations

On 17 June 2014, President Zuma declared in his State of the Nation Address that Government would like our people’s experience of local government to be a pleasant one.

He underlined the fact that although our municipalities are built on a firm foundation, there are certain municipalities who are not performing optimally, and that Government has heard the complaints and proposals of South Africans relating to the performance of municipalities.

On 18 September 2014 at the 2nd Presidential Local Government Summit, the Back-to-Basics programme was launched to promote good governance and effective administration.

The B2B approach recognises the tremendous progress that Local Government has made in the delivery of basic services - water, sanitation, electricity, and refuse removal. It acknowledges that between 2000 and 2017 these services have been progressively extended to more citizens than ever before, but commits the totality of Government to do more to improve the performance of municipalities.

Despite our delivery achievements, municipalities have been confronted by a series of problems. Institutional incapacity and widespread poverty have undermined the sustainability of the local government project, leading in some instances to a catastrophic breakdown in services.

The viability of certain municipalities is also a key concern. The low rate of collection of revenue, due to a number of challenges - including a low rates base, services debts and high levels of poor and indigent populations - continues to undermine the ability of municipalities to deliver services to communities.

Our municipalities also need to be managed by appropriately skilled personnel and their correct placement.

Slow or inadequate responses to service delivery challenges are in turn linked to the breakdown of trust in the institutions and in councillors, by some of our communities.

The so-called ‘service delivery protests’ may be said to be a reflection of community frustration with several of these failures, and have generated a negative narrative on municipal leadership and governance in our municipalities.

Slow or inadequate responses to service delivery challenges are in turn linked to the breakdown of trust by some communities in their local institutions and their councillors.

Social distance by our public representatives has been a major cause for concern. This reflects inadequate public participation platforms and questions on the functionality of ward councillors and ward committees.

Our municipalities also need to be managed by appropriately skilled personnel who are placed in the right positions and at the right level.

Too often we forget that most citizens’ experience of government occurs at the local government level.

The first phase of the Back-to-Basics programme was based on a foundation of doing the basics right: putting people first by engaging with communities; effective delivery of services; good governance; sound financial management; and building institutional capabilities to ensure the living conditions of communities are improved.

When the traffic lights are working, the garbage is collected and clean water comes out of an open tap, that’s when our citizens know that government is working for them.

We can say however, with confidence, that the Back-to-Basics programme has been our response to meeting these challenges, and intensifying our efforts to improve the lives of all citizens.

Local government should thus now be in a stronger position to respond or coordinate responses to service delivery problems, and other concerns, as raised.  This requires effective intergovernmental relations and also speedy intervention from the provincial and national spheres too, on matters concerning their respective mandates, such as in water, electricity, housing, transport and roads.

The Inter-Ministerial Committee on Service Delivery has met regularly over the last year or so, in order to assess progress in sector specific support for local government, and to deliberate the intergovernmental management of national and external challenges, such as the prolonged drought, risk reduction measures, social protection measures, and so forth. This kind of intergovernmental commitment makes a difference to local government – and we need to maintain this commitment going forward.  ‘Local Government is Everybody’s Business.’

On the ground, progress has been identified through municipal reporting, and has been evident in a number of areas. For example, better audit results, better and more prudent spending of public funds, the hiring of competent staff, faster response times to community problems, and progress in local engagement with communities and stakeholders.

B2B is now well known across government and by the people: it has obtained traction within and outside of government. Many businesses have joined us in this Government-wide programme of support for local government. We have travelled far, built wide-ranging support, and gained many insights.

Some of these insights include the following:

  1. Political stability and strong leadership make a great difference to municipal performance
  2. Positive lessons were realised from the various Section 154 support packages and the Section 139 interventions;
  3. Direct ‘hands on support’ yields improved performance;
  4. Citizen engagements are generally weakest in those municipalities previously categorised as dysfunctional and at risk, and need focused support;
  5. Municipalities with weaknesses in governance and corporate management functions also tend to experience difficulties in service delivery, and will continue to be supported to build stronger foundations in these areas;
  6. Intergovernmental focus is needed to build technical capacity in planning, project management, and the design and procurement of infrastructure in municipalities;
  7. Citizen Satisfaction Surveys should be more widely utilised by municipalities to gauge community perceptions and to facilitate stronger engagement with communities.
  8. We need to monitor much more closely, the problem of ageing infrastructure across provinces, as ‘breakdowns’ are exacerbating challenges for service delivery
  9. We must continue to work on the basics in the field of technical capacity within municipalities; – knowing and administering our local government legislation, correct Supply Chain Management procedures, service delivery costing and delivery modalities – all such matters will remain of a core focus of B2B as we move forward.

Ladies and Gentlemen,

I would ask you to carefully read the Content Note document that you have been given as part of the documentation for this conference. This Note provides an excellent review of progress since 2015 in implementing B2B, our achievements and challenges, and our objectives going forward into phase 2.

Today, in the light of all the lessons we have learned and continue to learn, I have the privilege to now highlight for you, the goals and objectives of the next phase of the B2B programme.

We will, going forward, meet more business stakeholders to determine what role they can play in further developing our municipalities, through the B2B programme.

Distinguished Participants,

The B2B programme entered its second phase this year.

The first phase of the B2B focused on laying the foundation for a developmental local government by doing the basics right. This means that the pillars of the first phase of Back to Basics will now become the foundation on which we need to build further. The B2B ten-point plan should guide the continued implementation.

Focus areas of next phase of B2B

The next phase of the Back-to-Basic approach will include a concerted initiative to identify the root causes of problems in each municipality.

The focus will also be on the identification of what needs to be done differently by all stakeholders to address the root causes and bring about the desired changes in municipalities.

The implementation of the prioritised actions in municipalities should have the maximum measurable results in functionality, service delivery and citizen experience.

In the next phase of B2B we will be more precise and practical regarding the actions which will be effective in changing the way municipalities are working.

There must be measurable improvements in citizens’ experience of local government.

B2B: 10 Point Plan

We believe the newly developed 10 Point Plan will vastly improve the state of local government. The ten point plan highlights the following priorities:

  1. Positive Community Experiences;
  2. Municipalities Consistently Receiving Disclaimer Audit Opinions;
  3. Revenue Enhancement Programme;
  4. Appointment of Senior Managers in Municipalities;
  5. Services and Infrastructure;
  6. Implementation of Forensic Reports;
  7. Metropolitan B2B Programme;
  8. Strengthening Roles of District Municipalities;
  9. Spatial Regional Integration Zones/Spatial Contracts;
  10. Strengthen Capacity and Role of Provincial CoGTA Departments.

The second phase however, requires a government-wide paradigm shift in perceptions of the role of Local Government, and will require a reorientation of the approach to implementation of the Back to Basics Programme.

Municipalities that are not achieving the basics yet, will still need to first concentrate on getting the foundational pillars right.

Distinguished Participants,

The second phase requires moving beyond the basics, interpreting developmental local government and placing a focus on issues such as:

  • Municipalities must lead the creation of cohesive, integrated and sustainable human settlements in their local areas.
  • A much stronger focus on the importance of integrated spatial planning for a region, municipal space or metro; this means harnessing the plans and ideas of a wide range of stakeholders that must ultimately converge as targeted and well-coordinated investments in a given area. This will require high levels of negotiation and a solid understanding of what is required for the holistic development of an area.
  • Good planning should also be an enabler for local economic development (LED); stimulating local economies means getting the municipality’s basics right first: consistent water, electricity, good roads, good transport, and an awareness amongst role-players of the profile of the municipality – its opportunities, natural and comparative advantages, and so forth, so that targeted investments for job creation converge with its overall development profile.
  • The Integrated Urban Development Framework (IUDF) is a framework that guides and provides for action across all typologies in South Africa: every local space has features of urbanisation, and every space needs economic connectedness and an integrated, inclusive living experience. 
  • A stronger leadership role is required from our districts in the fields of coordinating and integrating planning in order to augment regional economic development, regional infrastructure planning and service delivery, as well as leading on the spatial transformation agenda.

Back-to-Basics is thus not an event, but a process; it is a process that that entails examining the opportunities for radical socio-economic development; it means studying the NDP and the IUDF, and translating their substantive recommendations into action within a local space. A new paradigm is indeed needed in these areas.

The NDP makes the commitment that by 2030 South Africa should have meaningful and measurable progress in reviving rural areas, and in creating more functionally integrated, balanced and vibrant urban settlements.

The IUDF sets out principles, policies and programmes to achieve the NDP’s goal of transforming the national space economy.

The IUDF’s overall outcome – spatial transformation – marks a New Deal for South African cities and towns, by steering urban growth towards a sustainable growth model of compact, connected and coordinated cities and towns.

Informed by this outcome and the NDP’s vision for urban South Africa, the IUDF aims to guide the development of inclusive, resilient and liveable urban settlements, while directly addressing the unique conditions and challenges facing South Africa’s cities and towns.

Going forward: The establishment of a Developmental State

Going forward, therefore, we need to consolidate on the gains made and also rigorously apply the lessons learnt thus far.

We should be under no illusions that the economic climate, which we are facing currently, is going to provide even steeper challenges for municipalities in the period ahead.

The constraints in the economic environment have serious implications for local government.

We shall have to make a concerted effort to ensure that resources allocated to local government are put to their best possible use.

In going forward today, to examine our own roles in advancing the goals of radical socio-economic transformation across the state, we hereby reconfirm our commitment to the vision of developmental local government, as part of our overall strategy in advancing our developmental state.

Lastly, ladies and gentlemen, let me emphasise that Local Government is recognised as central to the reconstruction and development effort of our country.

A responsive, accountable and efficient local government system forms the backbone, the spine, of our thriving democracy; local government now needs to fully embrace the challenges ahead in redressing apartheid spatial injustices; we must move forward together to forge social and economic inclusivity in each and every one of our metros, towns and small villages.

Radical Economic Transformation

Central to our vision of the developmental state is the realisation of radical economic and social transformation.

What exactly do we mean by this?

Local government has many opportunities to effect this transformation through a number of means at their disposal.

The leadership has the capacity to intervene strategically in pursuit of development programmes that are aimed at creating an environment for stimulating economic development, job creation, attracting investments and encouraging small business through procurement processes in order to uplift the social and economic conditions in communities.

Cogta has already embarked on this process of transformation. Working with National Treasury, the National School of Government and SALGA we have successfully facilitated the rollout of the Integrated Councillor Induction Programme to all newly elected councillors. The training focused on among others, leadership and municipal governance, public participation and accountability, councillor oversight, municipal planning with a view to transform municipal space, local economic development, financial management. To this end, more than 9000 councillors, including for the first time Traditional Leadership, have been. A further specific Portfolio-Based capacity building programme for councillors is underway where councillors will exit with a fully accredited qualification certificates. We believe this will further empower our leadership at local government level to transform municipal spaces.

To further enhance these measures, we are indeed striving towards the professionalisation of local government and making it a career of choice. The department promulgated the Regulations for Senior Managers with uniform norms and standards on the appointment of senior managers in municipalities. These regulations are aimed at ensuring that senior managers with requisite skills and qualifications are employed in municipalities. Furthermore, to advance the transformation agenda in municipalities and to create uniform norms and standards across the different levels in the staff establishment, the department is currently finalising the Municipal Staff Regulations, which will soon be presented to parliament for adoption.

The Department of Cooperative Governance has also initiated Business Development Forum (BDFs) programme to improve local economies in municipalities. The programme involves the identification, planning, and implementation of Catalytic Business Ventures (CBVs). To date, 11 BDFs have been established, with 108 catalytic commercially viable projects identified, planned and implemented. These CBVs are at different levels of development in each municipality. There has been a growing and robust relationship between the public and the private sector. A number of CBVs are owned by a majority of youth, women and members of the community. The private sector is taking the lead in identifying CBVs that will benefit the municipality while attracting investment and creating a number of sustainable job opportunities. We believe these joint ventures will further promote the economic transformation of our communities. I urge you to engage with us further on how we can implement these measures in your municipalities. The department is currently in a process to conduct induction sessions of the newly elected councillors of all the affected municipalities on the BDF programme. The purpose of the induction sessions is to solicit political championship as a strong centre to facilitate dialog between the municipality and the business sector to implement the identified CBVs.

The Municipal Infrastructure Grant (MIG) also promotes transformation, if used correctly. The recent gazetting of procurement regulations requiring large construction companies to sub-contract at least 30% of business to black-owned enterprises, as pronounced in the 2017 SONA by the Honourable President, has opened a window of opportunity for local government to effectively contribute to radical socio-economic transformation. One way of make such contribution is to leverage on the Municipal Infrastructure Grant (MIG) spending for the development of basic services infrastructure. CoGTA is charged with the responsibility of managing and overseeing the spending of the total MIG allocation for municipalities standing at R14.9 billion for the 2016/17 financial year.

The MIG supports the development of new and the upgrading of infrastructure to provide basic services (water, sanitation, refuse), roads and social infrastructure for poor households in all non-metropolitan municipalities. It also allows for the renewal of infrastructure servicing the poor and also the maintenance of roads servicing the poor as identified through the Rural Roads Access Management System (RRAMS).

The MIG annual allocations over the 2017 MTEF includes an amount of R900 million, which is allocated outside of the grant formula and earmarked for specific sport infrastructure projects identified by Sport and Recreation South Africa.

In addition to the above, municipalities are required to spend 4.5 percent on sport and recreation infrastructure identified in their own integrated development plans. Municipalities are also encouraged to increase their investment in other community infrastructure, including cemeteries, community centres, taxi ranks and marketplaces.

The Community Work Programme (CWP) represents an opportunity for municipalities to ramp up their youth and women development efforts, especially in poor and rural communities where poverty and unemployment affect mainly young people. Furthermore, the CWP provides participants with relevant training to improve their skills, thereby enhancing their chances of entering the mainstream labour market or becoming self-employed. Currently, 42% of CWP participants are youth and as this programme is scaled up to create a million work opportunities, it means more young people from poor communities will benefit.

Other steps that can be taken to promote youth development in furtherance of our transformation goals, include establishing youth desks in every municipality in partnership with the NYDA and establishing a database of unemployed graduates, youth SMEs and Cooperatives and providing them with support.

The Municipal Infrastructure Support Agent (MISA) supports transformation by developing much-needed skills, especially among the youth. MISA has a Capacity Building programme to provide opportunities to young people that qualified from TVETs, Technical Colleges and Universities with a civil, electrical, town planning or other related studies / fields required for infrastructure development and maintenance in municipalities. MISA has facilitated experiential learning and provided bursaries to students.

Over the last three years MISA’s skills development programme has brought about the following achievements:

  • Qualification of 78 artisans since 2015;
  • Training of 2590 municipal officials through various technical short courses since 2014;
  • Awarding of bursary to 246 pursuing studies in technical disciplines from 2013 to date; and
  • Training of 87 water and waste water process controllers up to NQF Level 2 over the 2015/16 financial year

Ladies and Gentlemen,

As the President has referred to earlier, the most important part of our Summit begins just after lunch when we divide into three interactive panel discussions.

The panel deliberations will focus on:

Panel 1: Intergovernmental and stakeholder roles and responsibilities towards radical social and economic transformation at local level.

Panel 2: Intergovernmental and Stakeholder cooperation and collaboration to ensure resilient municipalities thorough focused Disaster Risk Reduction strategies.

Panel 3: Transforming the economy of space: intergovernmental commitments towards radical socio-economic transformation.

Distinguished Participants,

I totally believe that the Second Phase of the B2B approach is a timely intervention, a rallying cry to support our powerful transformation agenda. It will empower us all to make South Africa a better place for all who live in it.

I trust that our deliberations over the next day and a half will be fruitful, robust and enlightening. I look forward with great interest to the outcomes of this important intergovernmental and stakeholder dialogue on radical socio-economic transformation.

Ladies and Gentlemen,

In a speech explaining his understanding of a viable democracy in South Africa at a meeting organised by the South African Congress of Democrats in Johannesburg 1958 Albert Luthuli indirectly challenged us not to side step our efforts to create a suitable democracy in South Africa. I believe his words of then, should inspire our deliberations at this Summit:

“I believe that here in South Africa, with all our diversities of colour and race; we will show the world a new pattern for democracy. There is a challenge for us to set a new example for all. Let us not side step this task.”

I thank you

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