Minister Velenkosini Hlabisa briefs Portfolio Committee

The Minister of Cooperative Governance and Traditional Affairs (CoGTA), Mr Velenkosini Hlabisa together with Deputy Ministers, Dr Namane Masemola and Prince Burns-Ncamashe earlier today provided a comprehensive account to the Parliamentary Portfolio Committee on Cooperative Governance and Traditional Affairs on the following imperatives: 

• The implementation of the Municipal Performance Turnaround Strategy targeting distressed municipalities as well as the introduction of policy and legislative support measures to strengthen local government;
• Progress on the establishment of the Kings Forum and the pending launch of the Queens Forum; and 
• An update on the processing of the Traditional and Khoi-San Leadership Bill.

Providing an aggregated national overview of Local Government perfomance assessment against Governance; Service Delivery and Financial indicators, Director-General Mbulelo Tshangana of the Department of Cooperative Governance (DCoG) reflected on the notable increment of STABLE municipalities from 30(12%) in 2022 to 61(24%)in 2023, an increase of 13%. Equally, the number of municipalities in DISTRESS has reduced from (66) 25% in 2022 to (35) 13% and in 2023, a decrease of 12%. There is an overall reduction of municipalities at risk in 2022 and 2023 at (161) 63%, albeit this improved performance has not translated into Service Delivery and Governance improvement.

This enhanced performance is attributed to the synchronized intergovernmental support packages led by Sector Departments, Provincial chapters and SALGA through the implementation of Municipal Improvement and Financial Recovery Plans, including the appointment of technical experts, monitoring and reports as well as hands-on individual municipal support.

The results can be witnessed in improved audit outcomes; stability in governance structures; functional ward committees, and efficient spending on the Municipal Infrastructure Grant (MIG) as well as the approval of funded budgets by municipalities.

The Department of Cooperative Governance through its entity the Municipal Infrastructure Support Agent (MISA), has evoked the provisions of Schedule 6B of the Division of Revenue Act to address the effectiveness of MIG, currently being implemented in the uThukela District and Emfuleni Local Municipalities to valueof R88.3 million.

MISA further conducted the preliminary analysis and recommended for 6B conversion of R494 million by National Treasury earmarked for the 21 municipalities mostly affected by Department of Water and Sanitation charges in the Vaal River basin, as part of the first phase subject to Capacity Building Plans, Municipal Consultations and the Submission of Agreements.

Additionally, in respect of Electricity and Energy Support, deliberate focus is being directed at the review of high tariffs to promote affordability; consistent application of Free Basic Electricity (FBE), the reduction of theft and vandalism as well as ghost vending, coupled with the replacement of old meters through the token identification (TID) program and responsive restoration of power during outages, consistent with regulations, to cite but a few.

Central to the municipal turnaround plan is a dedicated focus on the viability and sustainability of Water and Sanitation utilities, anchored on graduating them into ring-fenced legal entities, that have have the capacity to raise investment capital to address all capital and operational management of the service including addressing household affordability as well as expansion of the services to under-serviced communities.

Subsequent to the presentation of the municipal audit outcomes for 2022/2023 by the Auditor-General of South Africa on 21 August 2024, a tactical post audit action plan is afoot to address local government underperformance focused on some of the following priority areas:

• Professionalisation of local government;
• Accountability, oversight, and consequence management;
• Financial management and improved audit outcomes;
• Modernisation of the local government business processes and improvement of the municipal ITC and control environment; etc.

The Department is further undertaking extensive policy and legislative refinements to augment the functionality and effectiveness of local government through good governance, operational efficiency and improved service delivery in municipalities as well as seamless intergovernmental coordination and cooperation of structures – (Legislation/Policy: Structures Act of 1998; Municipal Systems Act of 2000; Municipal Property Rates Act of 2004; Intergovernmental Monitoring, Support and Interventions Bill; Intergovernmental Relations Framework Amendment Bill of 2024; White Paper on Local Government).

Furthermore, the Independent Municipal Demarcation Authority Bill will establish the Demarcation and Appeals Authority functions, as well as the criteria and procedures for determination or redetermination of municipal boundaries, the delimitation of wards by enhanced public participation; and the settling of disputes; and other matters incidental thereto.

The Traditional and Khoi-San Leadership Act (Act No. 3 of 2019) (TKLA), was passed by Parliament in 2019 and commenced on 01 April 2021, however the Constitutional court judgement of 30 May 2023 ordered that Parliament failed to comply with its constitutional obligation to facilitate public involvement before passing the Act, and as such the Bill was declared unconstitutional and invalid.

In contributing to the process of Parliament to rectify its public participation process and re-enact the Act in a manner that is consistent with the Constitution, a s154(2) Notice was published in Government Gazette No. 51807 on 29 November 2024, with an initial closing date of 29 December 2024. However, due to requests for an extension of the closing date by members of the public, another notice with a closing date of 28 February 2025 was published on 20 December 2024 in Government Gazette No. 51807. Therefore  the initial closing date for public comments was extended by 2 months. A timebound action plan is under implementation to track progress in the processing of the Traditional and Khoi-San Leadership Bill 2024.

Ruminating on the report back from the Eastern Cape Provincial Initiation Coordinating Committee on the 2024 summer initiation season, as it pertains to the tragic deaths and amputations of initiates, Minister Hlabisa indicated that following meaningful engagements with critical stakeholders the aim is to have “Zero Illegal Customary Initiation Schools” premised on health screening and parental consent as well as resource mobilisation coupled with societal advocacy for cultural modernisation.

In conclusion, the Minister enthusiastically expressed optimism on the upcoming National Convention of Khoi-San Leaders scheduled from 14 to 16 February 2025.

For media enquiries, contact:

Ms. Pearl Maseko-Binqose
Media Liaison Officer for the Minister of CoGTA
Cell: +27 (82) 772 1709

Mr. Legadima Leso
COGTA Head of Communications
Cell: +27 (66) 479 9904

#EveryMunicipalityMustWork #SaferInitiation #ZeroDeath #ZeroIllegalInitiationSchools

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