Minister Thembi Nkadimeng: Chartered Institute Of Governance Finance, Audit & Risk Officers Annual Conference

Programme Director
Mayor of the City of Cape Town
The President, office bearers as well as members of the Chartered Institute of Government Finance, Audit & Risk Officers (CIGFARO)
Sponsor organizations
Ladies and gentlemen

Good Day

I would like to express my gratitude for the kind invitation to participate in this Chartered Institute of Government Finance, Audit & Risk Officers (CIGFARO) annual conference. Regrettably, I find myself unable to join you in person, due to prior commitments to my schedule. It is, therefore, with a sense of missed opportunity that I convey my sincere wish to be present among you, engaging in meaningful discussions under the conference theme, “Iron Sharpens Iron: Learning from best practices.”

This engagement comes at a time when the department has taken a strategic decision to partner with key stakeholders as moves on this journey to improve the state of local government within South Africa. One such key stakeholder is CIGFARO and hence the department concluded a Memorandum of Understanding with CIGFARO on 30 June 2023 to strengthen our collaboration in supporting municipalities. I am confident that this partnership will contribute tremendously to improving performance within our municipalities.

Today, we have gathered to address a topic that is important to the future of our beloved nation, South Africa. This topic centers on coalition governance, a concept that possesses the potential to mold the trajectory of our democracy in profound and transformative ways.

 In a diverse and dynamic country like ours, the underlying principles of a multi-party system are of utmost importance in ensuring that the ideals of true democracy are not just safeguarded but are also actively nurtured.

We understand that South Africa’s democratic journey has been marked by remarkable progress and moments of profound change. Nevertheless, it would be unwise to assume that our work in this regard is finished.

I am certain that you will all agree with me that democracy is not a static destination but an ongoing, evolving process—a journey towards a fairer and more inclusive society. Coalition governance emerges as a crucial vehicle in this journey, allowing disparate political entities to collaborate in search of common ground and the betterment of the people.

A central value that we must uphold within a multi-party system is inclusivity. South Africa is a mosaic of cultures, languages, and perspectives, and it thrives on this diversity—a concept beautifully encapsulated by the late Archbishop Desmond Tutu as the “Rainbow Nation.” Within coalition governance, we could celebrate this diversity, ensuring that all voices are heard, irrespective of party affiliations or ideological distinctions. In doing so, we uphold the tenets of true democracy, where the collective will of the people takes precedence.

Another fundamental aspect of coalition governance is the act of learning from one another. In a multi-party system, we have the unique chance to garner insights from the diverse experiences and perspectives that each party brings to the table. No single party holds a monopoly on wisdom or solutions.

By engaging across party lines, we can tap into the collective intelligence of our political landscape, enriching our decision-making processes and policies with a more comprehensive perspective. We can harness the strengths of each party while mitigating their weaknesses, thus forging a more robust and resilient government.

Furthermore, coalition governance compels parties to shift their focus from ideological divides to common issues and goals. In doing so, we break down the rigid barriers that have sometimes hindered progress in our democracy. The citizens we serve expect their leaders to prioritize their well-being, and coalition governance forces parties to come together and deliver results that transcend partisan interests.

The instability caused by the change in executives due to coalition dynamics over the past year has underscored the fact that political parties in South Africa are clearly struggling to cope with the delicate demands and dilemmas of coalition politics, hence the many challenges they continue to face, which includes, but not limited to the following.

• Unscrupulous manipulation by smaller parties to have governance by a small unrepresentative group of individuals;
• Coalitions incentivized by promises of senior positions or outright bribes with little thought on the impact of the same on the municipality and its ability to deliver services;
• In-fighting in councils characterized by walkouts resulting in inquorate councils failing to execute their legislated mandates;
• The inability to adopt budgets results in an administration that cannot spend its budget to address service delivery backlogs; and
• Lack of due diligence when making key appointments which results in compromised individuals appointed in critical positions.

All these challenges that are due to the coalitions have a direct impact on service delivery, making it difficult for municipalities to do what they are supposed to do as directed by our Constitution in section 152. For instance, a number of municipal councils under coalitions are unable to fulfill their obligations as enshrined in the Constitution. In addition, section 160(2) of the Constitution is specific in that the passing of bylaws; approval of budgets; the imposing of rates and other taxes, levies, and duties; and the raising of loans may not be delegated by the municipal council.

The rationality of having these functions exclusively performed by councils is based on their importance as far as service delivery to communities is concerned. It has been observed that most of the municipalities in coalitions have been battling to perform these critical functions, for instance, the passing of budgets. As you may be aware, municipalities cannot spend on budgets unless approved by the municipal councils. So, it is safe to say that service delivery will be significantly affected unless the budget is approved.

Therefore, unstable coalitions impact negatively on service delivery. The communities suffer and cannot be blamed if they protest as they do not benefit from the municipalities due to coalition governments, not being focused on service delivery but on political expediency.

While it’s true that coalition governance comes with its set of challenges, it remains a potent tool for fostering unity and inclusivity in a diverse society such as ours. It reminds us that democracy is not about winning or losing but about serving the common good.

This is important because coalition instability can ultimately undermine the municipal administration’s ability to deliver essential services to local communities. It places a strain on the planning and predictability of council decisions.

Despite being a relatively common occurrence in our country, coalition governments have not been institutionalized, meaning there are no clear rules or guidelines for their formation and functioning. Recognizing the challenges faced by councils with coalitions that hinder their effective functioning, the Department of Cooperative Governance is actively working with all stakeholders to bring about legislative reforms.

Since the proliferation of coalitions following the 2021 local government elections, many ideas emerged on how the coalition governments can be managed for the benefit of our communities, who are, by the way, the rightful beneficiaries of the services that should be provided by municipalities. Amongst the popular ideas are the following:

1. The Proportional Representation System is being replaced by the “first past the post model” which enables the party with the most votes to govern alone.
2. Imposing an electoral threshold, whereby a political party will be required to secure a pre-determined percentage of the overall vote to qualify for seats in a council.
3. The utilization of Section 12 of the Municipal Structures Act (which deals with the establishment of municipalities) ensures that municipalities governed through coalitions adopt the collective executive type of system. This will bring about inclusive decision-making within the coalition.
4. Enacting amendments to the Local Government: Municipal Structures Act, 1998 to ensure stability in local government and specifically within coalitions.
5. Signing of legally binding coalition agreements which must be enforced by the courts of law and made in public for civil accountability purposes.
6. Regulating the frequency in which motions of no confidence against municipal office bearers can be brought and extend the time permitted to form a government as opposed to the currently legislated period of 14 days.

In as much as the above-mentioned ideas might be valid, we need an inclusive approach that will involve various stakeholders like the South African Local Government Association (SALGA), provincial Departments responsible for local government, etc. To this effect, we are currently developing a coalition framework and a draft Bill amending the Local Government: Municipal Structures Act, 1998. This amendment will introduce, amongst others, that:

1. Political parties contesting an election in a municipal council must obtain a minimum of 1% of the valid votes cast in order to qualify for the awarding of a seat on the council – thus minimizing the number of parties in a municipal council;
2. A motion of no confidence in either the speaker or the mayor will only be permitted after 2 years since the council was last elected and by adopting a resolution to this effect with a supporting vote of at least two-thirds of the councillors – thus reducing the prevalence of disruptions in as far as office bearers are concerned;
3. Regulating the conclusion of the coalition agreement, including considering options to make it legally enforceable; and
4. Regulations be developed to govern arrangements in municipalities where coalitions are in place between political parties, or with independent candidates.

We understand that it is not possible to legislate political behavior or compel parties into stable coalitions. However, what we can do is provide a legal framework or other mechanisms within which political behavior operates or legislate factors that contribute to instability within coalitions.

In this regard, Deputy President Paul Mashatile has spearheaded a national coalition dialogue, and the participants have reached a consensus on the need for further engagement to address issues where political parties have differing opinions, such as the refinement of thresholds. Generally, there is agreement on the concept of a national framework for coalitions, and the focus is now on developing and refining the implementation of this framework.

We acknowledge that the changes resulting from this framework may not instantaneously alter the dynamics of coalitions within municipalities. Nevertheless, it aims to level the playing field and bring about stability in the way coalitions function.

In conclusion, coalition governance offers South Africa a promising future where the values of inclusivity and the exchange of knowledge among diverse parties shine brightly. It is a path that not only safeguards but strengthens the fundamental principles of true democracy. As we navigate the intricate landscape of South African politics, we call on all stakeholders to remember the promise of our Rainbow Nation and work collaboratively towards a brighter, more united future.

I strongly believe that this conference will add and provide much-needed advice and guidance to the possible solutions to addressing the challenges facing municipalities because of amongst others, coalitions. It will also contribute tremendously to the policy and legislative reform needed to provide the “rules of the game” so to say to assist parties in coalitions.

We commit to working together with all stakeholders to address the challenges faced by local government and support it to deliver on its constitutional mandate bearing in mind that municipalities have a vital role to play in the development of communities and ensuring that the development is democratized.

I thank you.