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Each district municipality is further subdivided into various smaller local municipalities also known as Category B municipalities. District and local municipalities share legislative and executive authority in respect of their commonly administered areas. District councils are primarily responsible for capacity building and district-wide planning. There are a total of municipalities in South Africa, comprising eight metropolitan, 44 district and local municipalities.
A number of significant demarcation changes became effective after the local government elections. The demarcation changes reduced the number of local municipalities from to and the total number of municipalities in South Africa from to The political management of municipalities is made up of an elected Municipal Council.
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The term of a Municipal Council may not be more than five years. The Municipal Council makes decisions on exercising its powers and performing its functions, including electing its office bearers, as well as appointing its executive and other committees. The Municipal Council employs the executive management and personnel that are necessary for the effective performance of its functions. There are three kinds of municipalities in South Africa, metropolitan, local and district municipalities also known as Category A, B and C municipalities.
Metropolitan municipalities have exclusive municipal executive and legislative authority in their respective areas. Local government elections are held once every five years. The next municipal elections are due to be held in All South African citizens over the age of 18 are eligible to vote. The Constitution places all elections and referendums in the country in all three spheres of government under the control of the Independent Electoral Commission IEC , established in terms of the Electoral Commission Act.
The Local Government: Municipal Systems Amendment Act is aimed at professionalising local government for improved service delivery and performance management, while also instilling a people-centred local government mindset in municipalities. A key objective of the Act is to progressively align the systems of municipal administration and human resource management with those of the Public Service in national and provincial government. CoGTA oversees the implementation of the following legislation applicable to local government. The Local Government: Municipal Property Rates Act regulates the power of a municipality to impose property rates, excludes certain properties from rating in the national interest, provides fair and equitable valuation methods of properties, and for municipalities to implement a transparent and fair system of exemptions, reductions and rebates through their rating policies.
In , an assessment of the state of local government found that problems in municipalities included poor governance and accountability, weak financial management, and a high vacancy rate in critical senior management posts. The findings further indicated an inability in some municipalities to deliver on the core set of critical municipal services. The findings pointed to a need to do things differently and respond directly to the findings of those assessments.
In reaction, the Local Government Turnaround Strategy was introduced as a government programme of action and a blueprint for better service delivery aimed at responsive, accountable, effective and efficient local government. The Local Government: Municipal Systems Act establishes a framework for planning, performance-management systems, effective use of resources, and organisational change in a business context. The Act also establishes a system for municipalities to report on their performance, and provides residents with an opportunity to compare this performance with that of other municipalities.
It also regulates publicprivate partnerships. The Act allows municipalities significant power to corporatise their services, to establish utilities for service delivery, or to enter into partnerships with other service providers. The Act provides for the adoption of a credit-control policy for municipalities, which will provide for the termination of services in the event of non-payment.
Municipalities have the power to pass by-laws to implement the policy. The Local Government: Municipal Finance Management Act is aimed at modernising municipal budgeting and financial management. It also introduces a governance framework for separate entities created by municipalities. The Act is a critical element in the overall transformation of local government in South Africa. It fosters transparency through budget and reporting requirements. Five focus areas, aimed at fast-tracking implementation of the strategy, have been identified.
The department aims to review all pieces of legislation that impede service delivery. In this regard, more than sections of legislation that fall under this category have been identified and reviews undertaken. The purpose of MISA is to be an institutional mechanism to manage and coordinate hands-on, targeted infrastructure development and technical capacity support without eroding the constitutional powers and functions of municipalities and other spheres of government.
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Integrated development planning is a process by which municipalities prepare five-year strategic plans that are reviewed annually in consultation with communities and other stakeholders. The aim is to achieve service delivery and development goals in municipal areas in an effective and sustainable way. LED is intended to maximise the economic potential of municipal localities and enhance the resilience of macro-economic growth through increased local economic growth, employment creation and development initiatives within the context of sustainable development. Through these interventions and resources, local role-players and interest groups are mobilised for the sake of achieving economic growth, and with the aim of creating jobs to reduce poverty.
The Minister is the head of the National Treasury. The Constitution confers extensive powers on national government to determine the financial management framework of all organs of state, in all spheres of government.
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National government must, through national legislation, determine uniform treasury norms and standards. The National Treasury is further expected to monitor and enforce these norms.
The National Treasury, therefore, not only implements the budget of the national government, but also plays a financial oversight role over other organs of state in all spheres of government. The National Treasury, together with the provincial treasuries, are responsible for administering the Municipal Finance Management Act the MFMA , which is the central piece of legislation regulating all financial matters of municipalities.
The Municipal Finance Management Act aims to modernise budget and financial management practices in municipalities in order to maximise the capacity of the municipalities to deliver services to all their residents, customers and users. It also gives effect to the principle of transparency as required by sections and of the Constitution.
Municipalities deliver basic services such as water, electricity, sanitation and solid waste removal. Municipalities also manage extensive public road networks, and support or provide public transport services.
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They also directly manage aspects of planning and regulatory systems that control land use, influence infrastructure roll-out and facilitate economic activity. The Constitution requires a division of nationally raised resources between national, provincial and local government. This is done through the Division of Revenue Bill, which is tabled with the national budget. Transfers to local government are made through the equitable share and conditional grants. The equitable shares are determined by formulas that take into account demographic and developmental factors.
Conditional grants are designed to achieve specific objectives, and municipalities must fulfil certain conditions to receive them. Local government raises revenue mainly from user charges, rates and taxes. Only a quarter of its overall spending is financed from the National Revenue Fund through the division of revenue.
However, poor and rural municipalities rely heavily on national transfers because they have much lower tax bases than large cities. Consequently, government directs higher per capita transfers to poor and rural municipalities, while working with urban municipalities to leverage their own resources to increase investment in infrastructure. Although AGSA audits the public sector, it is not part of it. This ensures its independence.
It is also not bound by any public service rules and regulations. AGSA annually produces audit reports on all government departments, public entities, municipalities and public institutions. Over and above these entity-specific reports, the audit outcomes are analysed in general reports that cover both the Public Finance Management Act and MFMA cycles. In addition, reports on discretionary audits, performance audits, and other special audits are also produced.
In addition to the determinations and redeterminations of municipal boundaries, the Board is also mandated by legislation to declare the. Salga is a listed public entity, established in terms of Section 21 of the Companies Act, and recognised by the Minister of Cooperative Governance and Traditional Affairs in terms of the Organised Local Government Act.
Salga is funded through a combination of sources, including a national government grant, membership fees from provincial and local government associations that are voluntary members, and donations from the donor community for specific projects. This list reflects all municipalities before the demarcation changes that took effect on 3 August Audit results are not available for new municipalities established on 3 August Their training is LG Seta Accredited.
Monthly VAT return support Training and other technical support. Email: info tneadvisory. The above figures are aggregated totals for Unauthorised, Irregular, Fruitless and Wasteful Expenditure. While the figures are aggregated for the purpose of this table, each type of expenditure is distinctly different in nature.
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