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MUNICIPAL CAPACITY ASSESSMENT
2018
Inkosi Langalibalele
KZN237
ii
iii
NOTE:
In this report, data from a wide variety of sources were used.
Municipalities were requested to provide information on broad aspects of
governance, capacity and the performance of functions. Stats SA data
from the population census and municipal censuses (Non-Financial and
Financial) were used to determine population size, number of
households and service backlogs. Other data were sourced from
National Treasury, LGSETA, SARS, CoGTA, SAPS, MDB, etc. for this
assessment of capacity. However, given that many municipalities did not
provide all the information requested of them, these additional data
sources were combined with their own data. All municipalities were also
provided with the information contained herein and requested to verify all
information in these capacity assessments, and to provide additional
information where necessary. Therefore, the MDB takes no
responsibility for any inaccurate information and the interpretation
thereof.
Contents
1. Introduction..........................................................................................................1
1.1 Methodology..................................................................................................3
1.2 Additional data sources..................................................................................4
1.3 Comparative analysis.....................................................................................4
1.4 The municipal report......................................................................................5
1.5 Overview of municipality................................................................................5
2. Environmental situation........................................................................................7
2.1 Demographics..............................................................................................10
2.1.1 Population.............................................................................................10
2.1.2 Age structure.........................................................................................11
2.1.3 Households and density........................................................................12
2.1.4 Income, tax and employment................................................................14
2.2 Land and Human Settlements......................................................................18
2.2.1 Land claims...........................................................................................18
2.2.2 Traditional communities.........................................................................19
2.2.3 Access to housing.................................................................................20
2.2.4 Types of housing...................................................................................21
2.2.5 Land use................................................................................................22
2.3 Infrastructure and Service Provision............................................................23
2.3.1 Movement and Transport services........................................................26
2.3.2 Education services................................................................................26
2.3.3 Health services......................................................................................29
2.3.4 Safety and security................................................................................30
2.4 Economic development................................................................................30
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2.4.1 Mining....................................................................................................30
2.4.2 Tourism.................................................................................................31
2.4.3 Telecommunication infrastructure.........................................................32
2.5 Other government services infrastructure....................................................33
2.6 Environment, Natural Features and Endowments.......................................34
3. Governance assessment...................................................................................36
3.1 Financial overview.......................................................................................36
3.2 Voter turnout................................................................................................39
3.3 Municipal staffing.........................................................................................40
4. Municipal Overview of Capacity.........................................................................41
4.1 Staffing information......................................................................................41
4.2 Management overview.................................................................................44
4.3 Financial information....................................................................................45
4.4 Governance.................................................................................................48
4.5 Departmental assessment...........................................................................50
5. Assessment of capacity to perform functions.....................................................52
5.1 Development and town planning services....................................................53
5.2 Technical services.......................................................................................61
5.3 Community services.....................................................................................66
6. Conclusion and recommendations.....................................................................73
6.1.1 Updating of information on Powers and Functions................................73
6.1.2 Identification of capacity requirements to exercise particular powers and
functions.............................................................................................................73
6.1.3 MECs could identify areas in which they need to rationalise the division
of powers and functions.....................................................................................74
Appendix 1: Definitions............................................................................................75
Appendix 2: Inkosi Langalibalele Amalgamation Process........................................88
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Provincial context..................................................................................................88
Municipal Context..................................................................................................90
Municipality Settlement Reality..............................................................................91
New Governance Arrangements...........................................................................93
Changed Economic Bases....................................................................................94
Personal Income Tax Bases..................................................................................96
Merging Infrastructure Realities.............................................................................98
Merging Municipal Financial Realities...................................................................98
Mergers and Audits.............................................................................................100
Changing Senior Management Capacities..........................................................103
Summary Issues..................................................................................................104
vi
List of figures
Figure 1: Municipal context........................................................................................6
Figure 2: Demographic overview..............................................................................11
Figure 3: Racial breakdown.....................................................................................11
Figure 4: Age breakdown..........................................................................................12
Figure 5: Number of households and municipal area................................................12
Figure 6: Household size.........................................................................................13
Figure 7: Percentage population by density.............................................................14
Figure 8: Percentage municipal area by density......................................................14
Figure 9: Household income....................................................................................15
Figure 10: Tax base.................................................................................................16
Figure 11: Employment............................................................................................17
Figure 12: Percentage total employment by sector..................................................17
Figure 13: Dependency and inequality.....................................................................18
Figure 14: Land area containing traditional authorities and which were part of
homelands.................................................................................................................19
Figure 15: Percentage of population living in informal settlements..........................20
Figure 16: Density of formal and informal areas......................................................20
Figure 17: Percentage of households by tenure......................................................21
Figure 18: Dwelling type...........................................................................................22
Figure 19: Land cover..............................................................................................23
Figure 20: Access to services..................................................................................25
Figure 21: Number of consumers billed...................................................................25
Figure 22: Road length by road type and surface....................................................26
Figure 23: Educational infrastructure per 10 000 population....................................27
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Figure 24: Matric pass rate and percentage of youth in school................................27
Figure 25: Percentage population by level of education..........................................28
Figure 26: Crime levels............................................................................................30
Figure 27: Active mines and mining licences...........................................................31
Figure 28: % of land with natural heritage assets....................................................31
Figure 29: Access to telecommunications................................................................32
Figure 30: General infrastructure.............................................................................33
Figure 31: Audit outcomes.......................................................................................37
Figure 32: Financial indicators.................................................................................38
Figure 33: Further measures of financial performance............................................39
Figure 34: Voter turnout and registered voters.........................................................39
Figure 35: Municipal councillors and employees......................................................40
Figure 36: KwaZulu-Natal changes in municipal boundaries...................................89
List of tables
Table 1: Land claims................................................................................................19
Table 2: Schools and learners.................................................................................28
Table 3: Key health statistics...................................................................................29
Table 4: Potential impacts of climate change...........................................................34
Table 5: Staffing levels.............................................................................................41
Table 6: General qualifications.................................................................................41
Table 7: MFMA competency....................................................................................42
Table 8: Total days worked......................................................................................43
Table 9: Staff turnover..............................................................................................44viii
Table 10: Senior management.................................................................................44
Table 11: Qualifications of professionals..................................................................44
Table 12: Expenditure..............................................................................................45
Table 13: Income.....................................................................................................46
Table 14: Creditors...................................................................................................46
Table 15: Analysis of rates collected........................................................................47
Table 16: Free basic services..................................................................................48
Table 17: Meetings held...........................................................................................49
Table 18: Protests and petitions...............................................................................50
Table 19: Departments.............................................................................................51
Table 20: Grouping of functions...............................................................................52
Table 21: Performance of functions (Development and town planning services).....53
Table 22: Financial overview (Development and town planning services)...............55
Table 23: Staffing overview (Development and town planning services).................57
Table 24: Backlog and service delivery (Development and town planning services)
..................................................................................................................................59
Table 25: Performance of function (Technical services)..........................................61
Table 26: Financial overview (Technical services)...................................................63
Table 27: Staffing overview (Technical services).....................................................64
Table 28: Backlog and service delivery (Technical services)...................................65
Table 29: Performance of function (Community services).......................................66
Table 30: Financial overview (Community services)...............................................68
Table 31: Staffing overview (Community services).................................................69
Table 32: Backlog and service delivery (Community services)...............................71
Table 33: Changes to Category B Municipalities.....................................................89
Table 34: Summary of merger and incorporation.....................................................91
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Table 35: Population density....................................................................................93
Table 36: Voters and councillors..............................................................................94
Table 37: Employment and economic growth..........................................................96
Table 38: Rates and staffing....................................................................................97
Table 39: Infrastructure............................................................................................98
Table 40: Financial distress...................................................................................100
Table 41: Audit outcomes......................................................................................102
Table 42: Municipal Managers...............................................................................103
Table 43: Chief Financial Officers..........................................................................104
Table 44: MM and CFO vacancies.........................................................................104
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Acronyms
AG Auditor-General
Capex Capital Expenditure
CEO Chief Executive Officer
CFO Chief Financial Officer
CoGTA Department of Cooperative Governance and Traditional Affairs
CSP Cities Support Programme
DBSA Development Bank of Southern Africa
DCOG Department of Cooperative Governance
DHS Department of Human Settlements
DPME Department of Monitoring and Evaluation
DRDLR Department of Rural Development and Land Reform
DTI Department of Trade and Industry
DWS Department of Water and Sanitation
EC Eastern Cape
FBS Free Basic Services
FET Further Education and Training
FS Free State
GAU Gauteng
GDP Gross Domestic Product
HoD Head of Department
HIV Human Immunodeficiency Virus
ICT Information and Communication Technology
IDC Industrial Development Corporation
IDP Integrated Development Plan
ILO International Labour Organisation
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IUDF Integrated Urban Development Framework
KZN KwaZulu-Natal
LGSETA Local Government Sector Education Training Authority
LIM Limpopo
MDB Municipal Demarcation Board
MEC Member of the Executive Committee
MFIP Municipal Finance Improvement Programme
MFMA Municipal Finance Management Act
MIIF Municipal Infrastructure Investment Framework
MISA Municipal Infrastructure Support Agent
MM Municipal Manager
MPAC Municipal Performance Audit Committee
mSCOA Municipal Standard Chart of Accounts
MP Mpumalanga
NC Northern Cape
NDP National Development Plan
NEMA National Environmental Management Act
NT National Treasury
NUSP National Upgrading Support Programme
NW North West
OECD Organisation for Economic Cooperation and Development
Opex Operating Expenditure
PGDP Provincial Growth and Development Plan
PIT Personal Income Tax
ppsk persons per square kilometre
RDLR Rural Development and Land Reform
RSA Republic of South Africa
xii
SALGA South African Local Government Association
SANBI South African National Biodiversity Institute
SAPS South African Police Service
SARS South Africa Revenue Service
SDBIP Service Delivery and Budget Implementation Plan
SDF Spatial Development Framework
SEZ Special Economic Zone
SIP Strategic Infrastructure Project
SPLUMA Spatial Planning and Land Use Management Act
Stats SA Statistics South Africa
TB Tuberculosis
TVET Technical and Vocational Education and Training
WC Western Cape
WSDP Water Service Development Plan
WWTW Wastewater Treatment Works
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1. Introduction
Governance is affected by the management and technical experience available in an
organisation. In South Africa, there is ‘unevenness in capacity that leads to uneven
performance in local, provincial and national government. This is caused by a
complex set of factors, including tensions in the political-administrative interface,
instability of the administrative leadership, skills deficits, the erosion of accountability
and authority, poor organisational design and low staff morale’1.
The Local Government: Municipal Structures Act makes provision in Section 85 for
the Municipal Demarcation Board (MDB) to assess the capacity of municipalities and
through that provide advice to MECs when they consider changes to the existing
division of powers and functions across district and local municipalities. The
capacity of municipalities to perform functions is also to be considered by the MDB
when redetermining municipal boundaries.
The MDB has prepared numerous capacity assessments over the past decade, in
fulfilling its mandate to assess municipal capacity and make recommendations
where requested. More recently, these assessments have also included external
environmental or socio-economic drivers of capacity.
This project therefore aims to collect and analyse data and information on municipal
capacity to perform all municipal powers and functions as set out in Schedules 4 Part
B and 5 Part B of the Constitution of the Republic of South Africa. In addition, the
project addresses the MDB’s expanded scope of the municipal capacity
assessments to include an assessment of the governance and
resource/environmental situation in each municipality.
Specifically, the project aims to:
Allow the MDB to take informed decision when determining and re-
determining municipal boundaries.
1 2030 National Development Plan1
Assess the capacity of municipalities to perform all municipal powers and
functions as espoused in Schedule 4B and 5B of the Constitution and Section
84 of the Local Government: Municipal Structures Act.
Collect and provide data and information to be utilised for the determination
and redetermination of municipal boundaries.
Provide information which will allow for the MDB to provide advice to MECs
for them to adjust powers and functions between Category B and C
municipalities in terms of Section 85 of the Municipal Structures Act.
The overall aim is to provide a national overview of the distribution of powers and
functions at a non-metropolitan level, including here an assessment of existing
capacity to execute these functions. This data provides a benchmark to better
inform particularly MECs on the overall shape of powers and functions across South
Africa so that if and when they request the MDB to provide advice on the possible
division of powers and functions they can do so informed by the division of functions
across South Africa as a whole and within their province in particular.
In order to do this, the project has gathered as much information as possible to
examine the capacity of municipalities to perform their powers and functions, within
the environmental (economic, social, spatial, etc.) conditions in which they find
themselves. This includes information on:
1. Planning capacity, and particularly the role of district municipalities in terms of
the legal framework
2. Financial capacity: Evaluation of factors used and sources of revenue,
including challenges
3. Delivery capacity: Evaluating the division of powers and delivery of functions
relative to backlogs,
4. Administrative capacity, including ICT and human resource profiles
5. Geographical challenges.
The objectives of the municipal reports are to provide an overview of the
environmental situation of the municipality, and then to provide a summary of
capacity information as provided by each municipality.
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1.1 Methodology
In June 2018, municipalities were asked to participate in this project. Information
was requested on the degree to which they are both performing their legislated
and/or assigned powers and functions, and the existing capacity and competencies
in each municipality. Provinces were also requested to assist in this process.
The questionnaire covered three areas:
1. General information about the municipality: This includes contact details,
its leadership, budget, services, administration and governance;
2. Senior management details: This section requests information on each of
the senior managers;
3. Powers and functions: Information on which powers and functions are
being performed by the municipality, and the capacity to do so.
Once the questionnaire was completed, the municipal manager submitted this to the
service provider. Data was checked, and queries were addressed with municipalities
where necessary. Information pertaining to the environmental situation of each
municipality was sourced from relevant government departments or national
organisations, such as Stats SA, National Treasury, CoGTA etc.
It was expected that the data could be collected over a six-week period, but,
unfortunately, many municipalities have failed to complete this, in spite of extensive
communications with municipalities: over 7000 calls received and calls made to
municipalities across South Africa encouraging them and assisting where necessary,
with almost 2000 emails being sent to municipalities. In addition, all Municipal
Managers, Mayors and their offices were contacted to improve response rates.
MINMEC had also resolved that COGTA departments should ensure responses
were completed by mid-October 2018. In terms of this, on a weekly basis HoDs of
COGTA in each province have been contacted providing them with updates and in
3
some cases, this has assisted in improving response rates. Whilst some
municipalities provided all the information required, around 20% did not.
1.2 Additional data sources
A wide variety of municipal information was also sourced from organisations such as
Stats SA, SARS, LGSETA, National Treasury and the like. Some of these data were
used to prepopulate the questionnaire allowing municipalities to both verify the
information and/or update it. This data is also presented below in providing a
situational overview of each municipality.
1.3 Comparative analysis
Municipalities in South Africa are categorised as being either Category A
(Metropolitan Areas) or Category B (Local) within Category C (District) municipalities.
Further classifications have been provided such as the Municipal Infrastructure
Investment Framework (MIIF) classification. This divides Category B municipalities
into four groups made up of the larger ones that exercise more powers to smaller
ones, with fewer resources and exercising relatively few powers (B1 through B4).
Category C municipalities are divided into two groups based on those which are
water authorities and those which are not. Specifically, the MIIF classification for
local and district municipalities is as follows2:
B1: Secondary cities: the 21 local municipalities with the largest budgets.
B2: Municipalities with a large town as core.
B3: Municipalities with relatively small populations and a significant proportion
of urban population but with no large town as core.
B4: Municipalities which are mainly rural with, at most, one or two small towns
in their area.
2 DBSA, MIIF 74
C1: District municipalities that are not water services providers and generally
have few service delivery functions.
C2: District municipalities that are water services providers and often have
substantial obligations.
For purposes of benchmarking of the municipalities in the following sections, the
MIIF classification provides a useful means of measuring the municipality’s
characteristics against other Category B/C municipalities. In all of the sections and
subsections below, the information is also compared with benchmarks: District to
District, Category B to Category B, etc.
1.4 The municipal report
The objectives of the municipal reports are to provide an informational overview of
the environmental situation of the municipality, reviewing the demographic and social
context, the economic context, land and human settlements, movement and
transport, infrastructure and service provision, and the environment. The municipal
reports then provide a review of the governance situation in each municipality, and a
high-level review of municipal capacity, looking at general staffing, management,
financial and governance information as well as details on capacity by function.
1.5 Overview of municipality
Inkosi Langalibalele Local Municipality was established by the amalgamation of
Imbabazane Local Municipality and uMtshezi Local Municipality on 3 August 2016
(https://municipalities.co.za/overview/1237/inkosi-langalibalele-local-municipality).
Further information on this amalgamation is contained in Appendix 2, at the end of this report.
5
A detailed map of the municipality is contained below, highlighting major roads,
relevant areas of interest such as airports and ports, as well as areas of significant
population density.
Figure 1: Municipal context
6
2. Environmental situation
This section of the report focuses on the broader demographic/social and economic
context, physical environment and infrastructural base, employment dynamics etc. of
the municipality. Through tables and figures, benchmarks are provided to indicate
the challenges and opportunities facing the municipality.
The information is drawn from the following sources, where available:
o The National Development Plan
o Provincial Growth and Development Plans
o Municipal IDPs and SDFs.
o Stats SA:
o Census 2001 and 2011
o Non-Financial Census, 2016 and 2017
o Community and Household Surveys
o Financial Census, 2016 and 2017
o Other data such as National and Provincial GDPs etc., as indicated
below
o SARS:
o Personal tax data at a municipal level
o COGTA:
o Senior management
o Amalgamations
o IUDF
o National Treasury:
o S41 reports
o Mid-year and budget assessments where reports have been completed
o Financial Distress information
o State of Local government reports
o Infrastructure data
7
o Department of Environment:
o SANBI database on municipal environmental information
o Hazard and other Physical environmental databases
o Other information of a geographic character, such as climate, types of
vegetation, soil conditions, rainfall patterns, air quality, river systems,
etc.,
o Department of Water and Sanitation
o Blue Drop and Green Drop status where available
o Water and sanitation services (Access levels, backlogs, projects
underway, plans for the future by all spheres of government, and water
catchment areas etc)
o Water and sanitation infrastructure
o Department of Agriculture and Forestry Affairs
o Land use evaluations
o Types of farming e.g. Forestry, fishing and crop, livestock etc. (include
the levels and extent of each or their contribution to the economy in the
area.
o Existing and future government planned agricultural projects.
o Predominant agricultural products or activities.
o Human Settlements
o Housing projects underway
o Building plans passed
o Access to housing (backlogs, number of people with access to
housing)
o Planned housing projects
o Land use patterns and plans
o Justice and correctional services, Safety and Security
o SAPS crime statistics
o Police stations including satellite stations (including policing districts)
o Magisterial districts (including offices)
o Courts (including location)
8
o Correctional centres
o Transport
o Roads and all transport Infrastructure (e.g. Airports, harbours etc.)
o Commuting (Subsidised bus transport and routes thereof, formal taxi
ranks and train services)
o freight services
o Transport plans by all spheres of government
o Department of Basic Education and Dept of Higher Education:
o Matric results
o Examination centres
o Schools
o Learners and educators
o Universities and TVET colleges
o Graduates
o Education districts
o Local Government Sector Education Training Authority
o Skills profiles for municipalities
o Department of Rural Development and Land Reform and Department of
Traditional Affairs:
o Land claims
o Traditional communities
o DTI and IDC:
o SIPs
o SEZs
o Plans passed
o Types of industry and the predominant manufacturing products
o Department of Tourism
o Tourism products/tourist attractions
o Contribution to the economy of the municipal area
o Department of Minerals:
o Mining licences9
o Operational mines and employment levels
o Eskom
o Access to electricity
o Backlogs and plans for the future
o Electricity infrastructure (location of Power stations, power lines, etc.
o Telkom and other telecommunication companies
o Access to services
o Infrastructure roll out
o Plans for the future
o Department of Health
o Health districts (spatial coverage per municipality)
o Hospitals
o Clinics or health centers
o Plans for the future
o Other sectoral surveys
In the subsections which follow, indicators developed from data provided in these
reports is used to describe the broader municipal area.
2.1 Demographics
2.1.1 Population
The figure below contains details of population dynamics within the municipality.
This includes the total population and growth rate, the gender breakdown of this
population and total number of households. It provides information on the following3:
Population: The total number of people living within a specified area of
jurisdiction;
Population growth rate: The overall growth rate in population between the
2001 and 2011 censuses;
3 Stats SA: Census10
Sex Ratio: The sex ratio provides an indication of the gender breakdown in an
area, and it is suggestive of the composition of the labour force. Sex ratios
will be affected by sex-selective out-migration such as men migrating.
Migrant labour-receiving areas usually have higher sex ratio figures (i.e. more
males to females) as the migrants are usually male. South Africa’s average
sex ratio is around 0,95, that is 95 men to 100 women. Lower sex ratios are
found in areas with a higher number of female-headed households, where
household sizes are generally larger, with higher dependency levels4.
Figure 2: Demographic overview
The following figure further breaks down the broad population by race. It indicates
the proportion of people of African origin, as well as other black South Africans
(people designated previously as Coloured and Indian) as well as people previously
designated as white. Given the history of apartheid, places with generally higher
proportions of minorities (such as whites) have been massively advantaged in
economic and other terms.
Figure 3: Racial breakdown
4 Demographics and Social; Stats SA: Census11
2.1.2 Age structure
The distribution of the population by age is also provided in the figure below with age
groups including those younger than school-going age (0-4 years), school going (5-
19 years), youth (20-29), general working age (30-64) and elderly (over 65 years of
age).
Figure 4: Age breakdown
2.1.3 Households and density
In examining the distribution of households, it is important to consider the definition
of households by Statistics SA. A household is seen as a group of persons who live
together and provide themselves jointly with food or other essentials for living, or a
single person who lives alone. Live-in domestic workers and live-in employees are
regarded as separate households. This is important in that when one examines
consumer units provided by municipalities in the sections below, such units could
consist of more than one household.
The following figure indicates the overall number of households in the municipality
compared with its area.
Figure 5: Number of households and municipal area
12
Importantly, though, the relative size of households and the density of population are
more useful indicators of human settlements and the extent to which municipalities
need to respond to challenges. This is particularly the case for relatively small
households (1-2 persons) and large (over 5 persons) households. Both provide
challenges for municipal planning and service delivery: small households hold out
the possibility, if linked to chain migration, that larger households will come into the
municipalities once a person’s employment becomes more stable, and larger
households often place an additional strain on the delivery of basic network services.
In other words, these data indicate the degree to which there could be migrancy
operating, particularly in the larger urban areas where one could find a higher
proportion of 1-2 persons households than in other areas. Likewise, larger
households could also indicate a degree of mutual aid existing not just for familial
reasons, but to cope with the effects of apartheid and unemployment.
The following figure provides information on:
The proportion of households consisting of one or two persons; and
The proportion of households consisting of over five persons.
Figure 6: Household size
The figure below highlights population density within the municipality. Population
density is a measurement of the number of people living within a physical area.
Examining changes to populations living in different densities gives a sense of the
change in the municipality in terms of settlement patterns. The OECD has argued
that a broad norm on what is rural would be persons living in areas with density
below 150 persons per square kilometre (ppsk). For purposes of this analysis, three
different density groups have been defined:13
Those less than 500 ppsk (low density and rural),
500-1000 ppsk (medium density); and
Over 1000 (very high) density.
The following two figures then shows both the area occupied by each of these
density groups and the percentage of people living in each of the density groups.
Figure 7: Percentage population by density
Figure 8: Percentage municipal area by density
2.1.4 Income, tax and employment
Income levels in the municipality are detailed in the figure below. Whilst this is
normally achieved by breaking the population up into quintiles of 20% of the
population, given the unequal distribution income in South Africa the use of quintiles
will not show the real gap between high and low earners. As a result, a wider range
of income distributions is used. The figure examines income distribution across the
14
municipality, through a number of categories of individual income being provided,
such as those households with5:
No income;
R1-R19600 income per annum;
R19601-R153800 income per annum;
R153801-R614000 income per annum;
> R614000 income per annum.
Figure 9: Household income
The personal tax base of the municipality is also a key economic indicator. This
indicator shows the average amount of Personal Income Tax (PIT) paid within each
municipal area. PIT is a tax levied on the taxable income (gross income less
exemptions and allowable deductions) of individuals and trusts. Most individuals
receive their income as salaries or wages, pension or annuity payments and
investment income (interest and dividends). Some individuals, such as sole
proprietors and partners, may also have business income which is taxable as
personal income. PIT is South Africa’s largest source of tax revenue and
contributed 35.9% of total tax revenue collections in 2014/15. It contributed 34.5% in
2013/146. For the 2016 year of assessment the following tax thresholds (i.e. the
amount above which income tax becomes payable) existed:
Younger than 65 years – threshold = R73 650 per annum;
65 years of age or older – threshold = R114 800;
For taxpayers aged 75 years and older, this threshold was R128 500.
5 Stats SA6 Tax Statistics 2015
15
By 31 March 2014, the Personal Income Tax register had grown 8.8%, compared
with the previous year, to more than 16.8 million individuals. Ideally, it should be read
also with business tax records, but these are not available.
In the following figure, the total amount of personal income tax generated and paid
by individuals within the municipality is detailed. In addition, data on the proportion
of taxpayers to the total population is provided. An indicator showing the number of
taxpayers, based on the above definition, per 100 persons living in the municipality is
also included.
Figure 10: Tax base
The form of employment is also an important indicator. Informal employment
identifies persons who are in precarious employment situations irrespective of
whether or not the entity for which they work is in the formal or informal sector.
Persons in informal employment therefore comprise all persons in the informal
sector, employees in the formal sector, and persons working in private households
who do not get basic benefits such as pension or medical aid contributions from their
employer, and who do not have a written contract of employment7.
The youth unemployment rate refers to unemployed youth, i.e. individuals aged 15 –
24 who are without work, actively seeking work in a recent past period (past four
weeks), and currently available for work. Discouraged workers or hidden
unemployed are not counted as unemployed or as part of the labour force. Not
actively seeking work refers to people who have not taken active steps to seek work
(i.e. job searches, interviews, informational meetings etc.) during a specified recent
period (usually the past four weeks).
Lastly, here, the unemployment rate is provided showing the number of unemployed
persons as a proportion of the number of persons currently active in the labour force.
7 Stats SA16
Unemployment refers to individuals without work, who are actively seeking work in a
recent past period (past four weeks), and are currently available for work. Persons
who did not look for work but have a future labour market stake (arrangements for a
future job start) are counted as unemployed8.
The following figure provides information on formal to informal employment, the
municipality’s unemployment rate, as well as the youth unemployment rate.
Figure 11: Employment
The next figure looks at employment by sector of the economy. The indicator shows
the percentage of people employed in the various sectors of the economy. The
sectors are an aggregation of the Standard Industrial Classification (SIC) sectors9.
The aggregated sectors are:
Agriculture, forestry and fishing
Community and social services
Construction
Electricity, gas and water
Financial and insurance activities
Manufacturing, mining and quarrying and other industrial activities
Mining and quarrying
Other service activities
Private households
Transport
8 International Labour Organization9 Refer to Stats SA, SIC 7th Classification, October 2012
17
Wholesale and retail trade, transportation and storage, accommodation and
food service activities
Figure 12: Percentage total employment by sector
Two indicators of income inequality have been included in this analysis: the
municipality’s dependency ratio and the Gini coefficient. The dependency ratio is an
age-population ratio of those not in the work force (the dependent part) and those
who are working (the productive part). It is used to measure the pressure on the
productive population. The Gini coefficient, on the other hand, measures the degree
of inequality in a set of data and is frequently used as a method of measuring
inequalities in income distribution in a population. The Gini coefficient ranges from 0
(everyone has the same income) to 1 (one person has all the income).
Figure 13: Dependency and inequality
2.2 Land and Human Settlements
18
2.2.1 Land claims
A land claim is a request for the restoration of a right in land, lodged with the
Commission on Restitution of Land Rights. Anyone who was dispossessed of a right
in land after 19 June 1913 as a result of past racially discriminatory laws or practices,
and who did not receive just and equitable compensation at the time of
dispossession, can lodge a claim for the restoration of such a right, or equitable
redress10.
The table below highlights the total area of the municipality under a land claim
process.
Table 1: Land claims
Sum of Land Claims
KZN237 933,779
KZN total 4846,889
SA total 20617,156
2.2.2 Traditional communities
It is important to recognise that the effects of apartheid remain writ large through our
country. Historically, traditional authority areas and areas in which homelands were
designated were particularly underdeveloped. The following figure indicates a few
measures of this underdevelopment through showing:
The percentage of wards in which there are traditional authorities;
The percentage of land coverage of the municipality in which traditional
authorities are found; and
The percentage of land in the municipality which was previously part of a
homeland.
Figure 14: Land area containing traditional authorities and which were part of homelands
10 http://www.ruraldevelopment.gov.za/component/content/article/347-land-claim/re-opening/771-
faq#.W2AQ_NIzY2w19
Further information on the details of traditional leaders can be obtained from the
National House of Traditional Leaders (www.cogta.gov.za).
2.2.3 Access to housing
One of the most important indicators of backlogs in service delivery is provided
through examining the number of people living in informal settlements. Stats SA
defines an informal settlement as an unplanned settlement on land that has not been
surveyed or proclaimed as residential, with housing that consists mainly of informal
dwellings. This is particularly the case in more urban municipalities and the figure
below compares the numbers and area occupied by people living in formal and
informal human settlements.
Figure 15: Percentage of population living in informal settlements
The following figure then examines population density in formal and informal areas.
Figure 16: Density of formal and informal areas
Secure tenure refers to the right of all individuals and groups to effective protection
against forced evictions and is the arrangement under which a household occupies 20
its dwelling. People have secure tenure when there is evidence of documentation
that can be used as proof of secure tenure status or when there is either de facto or
perceived protection against forced evictions.
The figure below examines security of tenure through an assessment of tenure by
ownership type:
Occupied rent free
Owned (not yet paid off and mortgaged)
Paid off
Rented
Figure 17: Percentage of households by tenure
2.2.4 Types of housing
The figure below looks at the percentage of households by dwelling type. This
indicates the type of dwelling that residents live in (except for those living in
collective living quarters and other institutions). Dwelling types are classified by
Stats SA as follows:
1. Formal Dwellings
a. House or brick/concrete block structure on a separate stand or yard or
on a farm
b. Flat or apartment in a block of flats
c. Cluster house in complex
d. Townhouse (semi-detached house in a complex)
21
e. Semi-detached house
f. House/flat/room in backyard
g. Room/flatlet on a property or larger dwelling/servants quarters/granny
flat
2. Traditional Dwelling
a. Traditional dwelling/hut/structure made of traditional materials
3. Informal Dwelling
a. Informal dwelling (shack, in backyard)
b. Informal dwelling (shack, not in backyard, e.g. in an informal/squatter
settlement or on a farm)
4. Other
a. Caravan/tent
b. Other and unspecified
Figure 18: Dwelling type
2.2.5 Land use
Land capability is a broad system of categorising land based on issues such as soils,
climate, erosion hazard and slope. It considers the risks of land damage from
erosion and other causes; and the difficulties in owning land owing to physical land
characteristics. Land capability classes are interpretive groupings of land units with
22
similar potentials and continuing limitations or hazards. Land coverage, on the other
hand, is the degree to which particular uses dominate the landscape.
The following figure provides a summary of the degree to which the area of the
municipality is/has:
Plantations
Water bodies
Mines
Degraded
Cultivated
Built up
Natural
Figure 19: Land cover
2.3 Infrastructure and Service Provision
Municipalities are often measured by the degree to which they deliver on a set of
basic network services: water, sanitation, energy, transport/roads and solid
23
waste/cleansing. This section reviews the degree of access to these areas,
including the number of consumer units billed by municipalities.
Service provision
The percentage of households with access to potable water is contained below. In
addition, information around access to an improved water source, and the number of
domestic and non-domestic users receiving water from the municipality is provided.
Potable water refers to water that is treated or confirmed safe for human
consumption. A potable water supply service refers to a service that delivers potable
water through a pipe or similar duct that is connected to a network, the supply of
which is relatively continuous given that it includes a deposit built for its storage. If a
house or group of houses has a ‘mother’ pipe connected either provisionally or
permanently; it shall be considered to have access to potable water. “A house shall
not be considered to have access to potable water when an individual house or
group is served by a conduit system built with for example wood, bamboo, or rubber
hose, connected directly to a river, well, or to another house”11.
Access is usually considered to be within 200m of the house, although in the figure
below the proportion of households getting access to potable water in their house or
ward is measured. The percentage of the population with sustainable access to an
improved water source represents the percentage of the population with reasonable
access to an adequate supply of safe water in their dwelling or within a convenient
distance of their dwelling. Reasonable access to water is defined as the availability
of at least 20 litres of water per person a day from a source within one kilometre of
the dwelling.
In terms of sanitation, the indicator used by Stats SA refers to the collection, removal
or disposal of human excreta and household waste water. Stats SA defines
waterborne sanitation as a:
Flush toilet connected to a sewerage system;
Flush or pour-flush to piped sewer system, septic tank or pit latrine;
11 StatsSA24
Ventilated improved pit latrine;
Pit latrine with slab.
Again, a measure is provided of wastewater provision to both domestic (households)
and non-domestic users i.e. commercial, industrial and other facilities.
A high-level overview of access to electricity in the municipality is contained in the
figure below i.e. the percentage of households with connections to the electricity.
This measure provides information on the level of electricity provision to residents
within a municipal area of jurisdiction. This includes the number of domestic and
non-domestic users receiving electricity from the municipality.
Regular solid waste collection is defined as having the solid waste picked up from a
household, transported and taken to a proper treatment facility (recycling or landfill
sites) on at least a weekly basis. Solid waste collection by an entity that is not legally
constituted is not included in this definition. The indicator measures solid waste
provision to both domestic (households) and non-domestic users, i.e. commercial,
industrial and other facilities.
Figure 20: Access to services
Figure 21: Number of consumers billed
25
Information on the municipality’s current and future infrastructure plans can be
obtained from their Integrated Development Plans and Spatial Development
Frameworks, available at www.kznonline.gov.za/index.php/inkosi-langalibalele-local-
municipality.
2.3.1 Movement and Transport services
Transport infrastructure
Measuring the various types of transportation infrastructure provides information on
travel behaviour through the use of cars as a travel mode providing access to work,
shopping, school and other community services. This measure can also inform the
need for further transport facilities. Unfortunately, detailed information on commuter
flows, modal split and the like is not available in a standardised format from which
municipalities can be benchmarked. However, the figure below provides information
on the extent of road infrastructure, including major roads, the kilometres of road by
surface type, and the length of national and provincial roads12.
Figure 22: Road length by road type and surface
2.3.2 Education services
12 Department of Transport26
This section looks at education levels in the municipality. This includes a measure of
the level of education, the matric pass rate, and the percentage of the population in
the school-aged cohort, that are enrolled in some form of education.
Educational infrastructure (schools and tertiary institutions)
It is also important to reflect on the degree to which municipalities have the same
levels of educational infrastructure. Educational infrastructure examines information
such as the number of educational facilities in the area. The figure below provides
such information including:
Number of primary schools per 10 000 people13
Number of high schools per 10 000 people
Number of tertiary institutions per 10 000 people
Figure 23: Educational infrastructure per 10 000 population
Matric results and learners in school
The figure below details the overall results of the final examination for Grade 12
learners in a school, which is to some degree indicative of the quality of education
within different institutions14. It also indicates the percentage of the population in the
school aged cohort (between and including ages 5 – 18) who are currently enrolled
in education.
Figure 24: Matric pass rate and percentage of youth in school
13 Department of Basic Education14 Department of Basic Education
27
The following table indicates the number of schools and learners registered in the
municipality in 2017.
Table 2: Schools and learners
Schools Educators Learners
KZN237 127 2233 56319
KwaZulu-Natal 5950 105763 2586752
South Africa 24813 462306 11496699
Level of education
The figure below provides a measure of the level of education described as a
percentage, for each education level including:
No schooling
Some schooling
Complete primary
Some secondary
Matric
Higher education
Figure 25: Percentage population by level of education
28
2.3.3 Health services
An analysis of information at a district level on some aspects of the state of health in
the area has also been completed15. The following variables are included:
PHC expenditure per capita: Provincial expenditure on sub-programmes of
DHS plus net local government expenditure on PHC per uninsured
population;
Children under 5 who died of diarrhoea: This is the proportion of children
under 5 years admitted to medical centres with diarrhoea who died;
Children under 5 dying from severe malnutrition: Proportion of children under
5 years admitted with severe acute malnutrition who died
TB deaths: The percentage of TB clients (all types of TB registered in
ETR.net) who died.
The HIV positive rate: The percentage of clients (including ANC first and re-
test clients) who tested positive for HIV; and
Medical aid schemes coverage: Percentage of population who have medical
scheme insurance.
The following figure provides a summary of how the municipality compares against
the province and nationally on these indicators.
Table 3: Key health statistics
DM CODE
PHC Exp pc 2016
<5 yrs deaths Diarrohea
<5 yrs deaths Sev
TB deaths 2015
HIV pos 15+ 2016
Med Scheme
15 Naomi Massyn, Ashnie Padarath, Nazia Peer and Candy Day, 2016/17 District Health Barometer, Health Systems Trust
29
2016 Mal 2016 cov 2016
DC23 1150,89359
967751
2,4 14,2180094
78673
6,29689174
705252
11,9096140
014385
7,06746253
477033
KwaZ
ulu-
Natal
1237,44795
001428
1,98767093
170821
7,43282059
097045
6,66223337
819696
9,80422120
028522
8,62825633
23537
Grand Total
1093,38924982994
2,18458895611585
7,26992129624842
7,73058723917573
7,44779736130905
12,8609337977168
2.3.4 Safety and security
Crime statistics
The following figure details crime levels in the municipality. This includes:
Murders and culpable homicides per 100 000: Murder is defined as the
unlawful death inflicted upon a person with the intent to cause death or
serious injury. This is apportioned as a rate per 100 000 population16;
Crimes against property per 100 000: This indicator highlights the crimes
committed against all types of property in a particular area of jurisdiction for a
relevant calendar year. This is apportioned per 100 000 population;
Violent crime per 100 000: The number of violent crimes is an indicator of the
amount of serious criminal offences in an area and a lead indicator of feelings
of personal safety. The number of violent crimes in an area is considered a
benchmark measure of the overall level of safety in the area.
In this municipality, crime levels are as follows:
Figure 26: Crime levels
16 SAPS30
2.4 Economic development
2.4.1 Mining
The following figure indicates the proportion of wards in the municipality that have
active mines in them, as well as the proportion of the area of the municipality which
has potential licences for prospecting.
Figure 27: Active mines and mining licences
2.4.2 Tourism
Tourist attractions and/products
Another area in which municipalities often focus their attention is the tourism sector.
The following figure indicates, for example, the proportion of area of the municipality
which consists of various categories of land usage which assist in enhancing the
tourism potential. These include:
Percentage local reserves
Percentage conservation areas, coastal catchments and protected areas
Percentage forests
Percentage game reserves
Percentage national Parks
Figure 28: % of land with natural heritage assets
31
2.4.3 Telecommunication infrastructure
ICT access to fixed and unfixed lines
Importantly, is the degree to which a municipality’s population is linked into ICT, with
the importance reflecting the degree to which a municipality is able to respond to the
opportunities of the fourth industrial revolution.
The following figure looks at access to telecommunications. This includes:
The number of people in the country who have access to land line telephone
communication
The number of people who have access to mobile phone communication. This
is different from landline connections in that mobile phones offer other
features and modes of communicating, for example, texting. It also allows
people to use the phone for access to the internet and provides users with
access freely, i.e. without being bound by the location of the
telecommunication facility.
The level of internet penetration in the country per jurisdiction.
Figure 29: Access to telecommunications
32
2.5 Other government services infrastructure
Some of the social, economic and governmental infrastructure available in the
municipality is also highlighted here. The following figure indicates, for example,
comparative data on some aspects of the infrastructure found in the municipality,
such as:
Private Hospitals per 100 000 people
State Hospitals per 100 000 people
Clinics per 100 000 people
Police stations per 100 000 people
Rail length in kms per 100 000 people
Airports (local and provincial) per 100 000 people
Figure 30: General infrastructure
Military installations
Information on the location and contact details of military installations in each
municipality can be found at the following website:
http://www.army.mil.za/contactus.htm33
Ports of entry
Information on the location and contact details of military installations in each
municipality can be found at the following website:
http://www.dha.gov.za/index.php/immigration-services/south-african-ports-of-entry
Home affairs and South African Security Services
Information on the location and contact details of Home Affairs offices in each
municipality can be found at the following website:
http://www.dha.gov.za/index.php/contact-us
2.6 Environment, Natural Features and Endowments
Climate change will have an impact on water, agriculture and many other human
activities. Some 39 key impacts have been identified. The next table provides a
summary of the key issues noted by municipalities in the district when analysing the
impacts of climate change17. These 39 potential impacts and the degree to which
they could affect specific districts is recorded. The first column of the table below
shows how many of the 44 districts indicated whether the impact needs to be
planned for, with the second column showing the percentage of districts so affected.
The third column indicates for this district whether or not it rated it as a critical issue
for consideration:
Table 4: Potential impacts of climate change
Climate Change Impact
# Districts %Districts DC23
5 Loss of High
Priority Biomes
26 59,1 Yes
6 Increased isolation 24 54,5 Yes17 Department of Environmental Affairs 2018. Local Government Climate Change Support Program (LGCCSP) District Municipality Priority Climate Change Indicators.
34
of rural communities
3 Less water
available for
irrigation and
drinking
28 63,6 Yes
17 Change in other
crop production
areas (e.g.
vegetables, nuts,
etc.)
13 29,5 Yes
1 Increased risks to
livestock
28 63,6 Yes
12 Increased
impacts on
environment due to
land-use change
17 38,6 Yes
14 Increased heat
stress
15 34,1 Yes
15 Increased risk of
wildfires
14 31,8 Yes
27 Change in fruit
production
7 15,9 Yes
24 Increased
exposure to pests
such as eldana,
chilo and codling
moth
8 18,2 Yes
19 Health impacts
from increased
storm events
13 29,5 Yes
35
3. Governance assessment
While the first part of each municipal profile contained an overview of the general
environmental situation in each municipality (demographic and social context, the
economic context, land and human settlements, movement and transport,
infrastructure and service provision, and the environment), it is relevant also to
assess the municipality’s general governance, through findings such as their audit
scores and other financial indicators, voter turnout and municipal staffing information.
3.1 Financial overview
Local government audit outcomes are detailed below and are indicated by the
following:
Unqualified with no findings – The municipality was able to produce financial
statements free of material misstatements (material misstatements mean
errors or omissions that are so significant that they affect the credibility and
reliability of the financial statements); measure and report on their
performance in accordance with the predetermined objectives in their IDPs
and/or SDBIPs in a manner that is useful and reliable; and comply with key
legislation (Score 5 in analysis below).
Unqualified with findings – The municipality has been able to produce
financial statements without material misstatements, but has struggled to align
their performance reports to the predetermined objectives to which they had
committed in their IDPs and/or SDBIPs; set clear performance indicators and
targets to measure their performance against their predetermined objectives;
report reliably on whether they had achieved their performance targets; and
determine which legislation they should comply with, and implement the
required policies, procedures and controls to ensure that they comply (Score
4 in analysis below).
36
Qualified with findings – These municipalities face the same challenges as
those that were financially unqualified with findings in the areas of reporting
on performance and compliance with key legislation. In addition, they were
unable to produce credible and reliable financial statements. Their financial
statements contain misstatements which they could not correct before the
financial statements were published (Score 3 in analysis below).
Adverse with findings - The financial statements of these municipalities have
so many material misstatements that the Auditor-General (AG) disagrees with
virtually all the amounts and disclosures in the financial statements (Score 1
in analysis below).
Disclaimed with findings - Those municipalities could not provide evidence for
most of the amounts and disclosures in the financial statements. The AG was
unable to conclude or express an opinion on the credibility of their financial
statements (Score 1 in analysis below).
Audit not finalised at legislated date (Not considered in averages).
New auditee (Not considered in averages).
The figure below provides the audit results for the municipality for the past three
financial years: 2014/15, 2015/16 and 2016/17. As indicated above, scores close to
1 indicate findings which are Adverse/Disclaimers, scores around 3 are Qualified and
scores close to 5 are Unqualified with no findings.
Figure 31: Audit outcomes
Measures of municipal finances look at financial distress information from National
Treasury, covering eight specific areas from the MFMA, with scores attributed to the
following eight variables:
37
Cash Coverage: this measures the amount of cash on hand a municipality
has to meet its monthly payments as and when they fall due. National
Treasury suggest that municipalities should have three months of average
operational expenditure available at any time.
Cash Balance: Identifies whether cash shortages / bank overdrafts pose a
‘chronic’ problem for the municipality.
Reliance on capital transfers: This determines the levels at which
municipalities are able to generate own funds to finance revenue generating
assets to enhance and sustain revenue generating streams
Overspending: This measures the overspending of operational budgets and
tests the effectiveness of municipal spending in accordance with resource es
available to them, what is the credibility of the budget and are municipalities
able to adjust expenditure should planned revenue not materialise.
Underspending of capital budgets: This shows the effectiveness of municipal
spending – but also provides an indication of whether municipalities are
compromising on capital programmes to resolve cash flow challenges, or
whether there are planning deficiencies which are impacting on service
delivery.
Debtors growth – this shows the year on year growth in debtors and provides
information on whether the municipality is exercising fiscal effort in collecting
outstanding debt. It demonstrates the extent to which financial distress is the
result of poor debtor management.
Debtors as a percentage of own revenue: this shows the revenue
management capabilities of municipalities.
Creditors as a percentage of cash: whether the municipality is able to meet its
monthly commitments.
Scores of 1, 2 or 3 are assigned to each municipality in terms of how they score on
each variable, with 3 being that they score poorly. These scores are added up and
those municipalities scoring between 17 and 24 are deemed to be financially
distressed.
Figure 32: Financial indicators
38
In addition, measures are also provided which detail aspects such as:
Whether or not a municipality is in financial distress based on these
indicators;
The degree to which a municipality (over the past three years) has underspent
its CAPEX;
Whether or not a municipality is subject to a Section 139 intervention;
Whether or not the Municipal Finance Improvement Programme operates in
the municipality; and
The total years in which a municipality has been in financial distress.
Figure 33: Further measures of financial performance
3.2 Voter turnout
In terms of governance, the first indicator represents the degree to which voters
participate in local elections. This is provided in the following figure, together with an
indicator showing the turnout of voters who have registered to vote as a percentage
of the voting population (age 19 and above).
Figure 34: Voter turnout and registered voters
39
3.3 Municipal staffing
The final set of data related to governance in the municipality examines the numbers
of municipal councillors and employees, including a focus on gender representation:
Number of elected councillors
Women as a percentage of total elected municipal councillors
Number of municipal officials per 100 000 population
Percentage of women employed in the municipal workforce
Figure 35: Municipal councillors and employees
40
4. Municipal Overview of Capacity
4.1 Staffing information
The table below provides an overview of staffing levels in the municipality, including
total staff currently employed, approved positions and funded vacancies. The table
below provides an overview of staffing levels in the municipality, including total staff
currently employed, approved positions and funded vacancies. For example, in this
municipality, 100% of staff are permanent employees. There is a vacancy rate of
1675,76%.
Table 5: Staffing levels
KZN237
Total municipal staff currently employed 520
Total permanent currently employed 520
Total temporary staff currently employed 0
Total approved positions 33
Total funded vacancies 553
Percentage of funded vacancies 1675,76
The qualifications of staff (from technical to postgraduate) are detailed below. 0% of
staff have some form of tertiary qualification.
Table 6: General qualifications
KZN237
Number of staff with postgraduate degrees 0
Percentage of staff with postgraduate
degrees
0
Number of staff with Bachelors degrees
Percentage of staff with Bachelors
degrees
0
Number of staff with technical
41
qualifications
Percentage of staff with technical
qualifications
0
In 2007, National Treasury introduced minimum competencies for municipal officials
responsible for financial and supply chain management. This was done in order to
modernise and professionalise financial management in municipalities, in keeping
with the principles of accountability, transparency, effective and efficient utilisation of
public resources.
The regulations cover the following aspects for the relevant financial and supply
chain management positions: minimum higher education qualifications; work related
experience, core managerial and occupational competencies and the financial and
financial and supply chain management competencies that the relevant municipal
officials should have to enable them to discharge their responsibilities under the
MFMA and the related reforms.
A structured training programme was introduced in support of the minimum
competency requirements for existing and new incumbents in the municipal sector. A
graduate internship programme was also introduced and additional financial
resources were made available to municipalities in the form of Financial
Management Grant over the medium term. This was augmented by additional
funding from the donor community, LGSETA and municipal own resources18.
The table below indicates the number of people in the municipality that have
completed MFMA competency courses.
Table 7: MFMA competency
KZN237
Number of municipal officials that have
completed the MFMA Competency 1:
Budgetting
Number of municipal officials that have
18 National Treasury and CoGTA, Minimum competency levels for municipal officials effective from
October 2015, 30 September 201542
completed the MFMA Competency 2:
Costing
Number of municipal officials that have
completed the MFMA Competency 3:
Income expenditure
Number of municipal officials that have
completed the MFMA Competency 4:
Ethics
Number of municipal officials that have
completed the MFMA Competency 5:
IG Fiscal relations
Number of municipal officials that have
completed the MFMA Competency 6:
Auditing planning implementation
Number of municipal officials that have
completed the MFMA Competency 7:
Performance management
Number of municipal officials that have
completed the MFMA Competency 8:
Internal control
Number of municipal officials that have
completed the MFMA Competency 9:
Risk management
Number of municipal officials that have
completed the MFMA Competency 10:
ICT and finance
The total number of days worked in the municipality is indicated in the table below,
as well as details on the total sick days taken in 2016/17.
Table 8: Total days worked
KZN237
43
Total number of days worked by staff
as a whole in 2016/17
Total sick days as a whole in 2016/17
Staff turnover, and specifically the total number of resignations and dismissals in
2016/17, are detailed below.
Table 9: Staff turnover
KZN237
Total resignations / contract endings in
2016/17
Total dismissals in 2016/17
4.2 Management overview
The table below provides an overview of senior management in the municipality,
including total number of Section 56 positions, as well as the percentage of
vacancies in 2016/17 and 2017/18. In this municipality, 42,86% of Section 56
positions were vacant in 2016/17, while 0% were vacant in 2017/18.
Table 10: Senior management
KZN237
Total Section 56 positions in the
municipality
7
Percentage of Section 56 positions
vacant for more than three months in
2016/17
42,86
Percentage of Section 56 positions
vacant for more than three months in
2017/18
0
44
The following table provides information on the number of qualified engineers,
planners, accountants and environmental officers.
Table 11: Qualifications of professionals
KZN237
Qualified engineers and engineering
technologists
0
Qualified planners and planning
technicians
0
Qualified accountants
Environmental officers 0
4.3 Financial information
Municipalities were asked to provide information on their finances, including
expenditure, income, creditors etc.
In this municipality, there has been:
A 2,06% decrease in operating expenditure, A 13,68% decrease in capital budgets, and A 5,92% increase in staffing budgets.
The municipal budget per household decreased from R10660,6 in 2016/17 to
R10441,32 in 2017/18.
Table 12: Expenditure
KZN237
Total estimated operating budget
2017/2018
490230626
Actual operating budget 2016/2017 500526000
Total estimated capital budget
2017/2018
53876000
Total actual capital budget 2016/2017 62414000
Total estimated staff budget 2017/2018 129226494
45
Total actual staff budget 2016/2017 122004000
% of the budget in 2016/17 that was
used for IDP projects
% of the budget in 2017/18 that is
being used for SDBIP projects
The table below highlights municipal income in 2016/17 and 2017/18. The following
is noted:
There has been a 12,94% increase in rates income between 2016/17 and
2017/18.
Grants income in 2017/18 makes up 38,56% of the municipality’s total
income.
There is an average of R 2016,86 rates income per household in 2017/18, an
increase from R 1785,84 in 2016/17.
Service charges in 2017/18 make up 44,48% of municipal income.
Table 13: Income
KZN237
Estimated rates income for 2017/2018 94693447
Actual rates income collected for
2016/2017
83847000
Estimated grant income for 2017/2018 215288000
Estimated grant income for 2016/2017 205433000
Total estimated income for service
charges for 2017/2018
248308498
Total actual income collected from
service charges for 2016/2017
222492000
Municipal creditors are detailed in the table below. There has been a:
307,41% increase in the amount owed to Eskom between 2016/17 and
2017/18
46
66,67% increase in the amount owed to water boards between 2016/17 and
2017/18
90,85% decrease in the amount owed for audit fees between 2016/17 and
2017/18
Table 14: Creditors
KZN237
Amount owed at year-end to Water
Boards for 2016/17 financial year
2400000
Estimated amount owed to Water
Boards currently for 2017/18 financial
year
4000000
Amount owed at year-end to ESKOM
for 2016/17 financial year
27000000
Estimated amount owed currently to
ESKOM for 2017/18 financial year
110000000
Amount owed at year-end for Audit
fees for 2016/17 financial year
4000000
Estimated amount owed currently for
Audit fees for 2017/18 year
366000
An analysis of rates shows the following:
Table 15: Analysis of rates collected
KZN237
Rates collected from residential
properties (including Sectional Title) in
2016/17
Rates collected from non-residential
Properties
(Business/Commercial/Industrial) in
47
2016/17
Rates collected from state-owned
properties (other than municipal) in
2016/17
Rates collected from
farming/agriculture properties in
2016/17
Rates collected from other properties
in 2016/17
In terms of national policy, municipalities should provide Free Basic Services to their
communities. The table below indicates whether free basic water and electricity is
provided, the quantity thereof, and the number of households benefitting from this
policy.
Free basic electricity makes up approximately 0% of the total operating expenditure,
and benefits 12,02% of households in the municipality.
Table 16: Free basic services
KZN237
Free Basic Services policy (water) No
Quantity of free basic water ND
Cost to municipality for free basic
water
Number of households benefitting from
free basic water
0
Free Basic Services policy (electricity) Yes
Quantity of free basic electricity Over 50KwH
Cost to municipality for free basic
electricity
Number of households benefitting from 5644
48
free basic electricity
4.4 Governance
Governance is defined as the exercise of political, economic and administrative
authority in the management of a country’s (municipality’s) affairs at all levels. It
comprises the mechanisms, processes and institutions through which citizens and
groups articulate their interests, exercise their legal rights, meet their obligations and
mediate their differences.19
As one indication of governance levels in the municipalities, the following information
was requested:
Number of municipal council meetings
Number of MPAC meetings
Number of EXCO/Mayoral Committee meetings
Number of audit/risk committee meetings
Number of ward committee meetings
In terms of the Municipal Structures Act, 117 of 1998, Section 18(2), a municipal
council must meet at least quarterly. A municipal Council may also establish one or
more committees necessary for the effective and efficient performance of any of its
functions or the exercise of any of its powers (Municipal Structures Act, 117 of 1998,
Section 79). The table below provides an overview of the number of meetings held
in 2016/17 and 2017/18.
Table 17: Meetings held
KZN237 2016/17 2017/18Council meetings 20 19
MPAC meetings 2 9
Exco/Mayco meetings 10 15
19 UNDP Governance for Sustainable Human Development, New York, 1997, pp. 2-3. See also the draft Working Consensus Definition of
Governance presented to the U.N. Consultative Committee on Programme and Operational Questions ACC/ 2000/POQ/ CRP.20 of 14
September 2000).49
Audit and risk meetings
Ward committee meetings
The number of protests and petitions received by the municipality is detailed below.
In this municipality there has been a 0% change in protests and petitions received by
the municipality between 2016/17 and 2017/18.
Table 18: Protests and petitions
KZN237 2016/17 2017/18
Number of protests and petitions
received
4.5 Departmental assessment
Total budget and staffing information for the three groups of functions (Development
and town planning services; Technical services; Community services) are provided
in the table below. This is followed by a detailed assessment by function in the
following section.
An analysis of data for each department finds the following:
Development and Planning
o 0% increase in operating budget between 2016/17 and 2017/18
o 0% increase in capital budget between 2016/17 and 2017/18
o A vacancy rate of 23,81%
Technical services
o 100% increase in operating budget between 2016/17 and 2017/18
o Increase in capital budget between 2016/17 and 2017/18
o A vacancy rate of 5,5%
Community services
50
o 141,01% increase in operating budget between 2016/17 and 2017/18
o Increase in capital budget between 2016/17 and 2017/18
o A vacancy rate of 22,16%
Department Budget Staffing
2016/17 Operati
ng expendi
ture
2017/18 Operating budget
2016/17 Capital budget
2017/18 Capital Budget
Total staff
Total vacancies
Staff with undergraduate degrees or
above
Staff with technical
qualification
Development
and Planning
0 0 0 0 21 5 3 4
Technical
services
700000
0
14000000 0 10000000 218 12 3 6
Community
services
700000
0
16871000 0 10000000 334 74 3 8
Table 19: Departments
51
5. Assessment of capacity to perform functions
One of the key objectives of these municipal reports is to provide information on the
capacity of municipalities to exercise each of their core functions. Information in this
section was provided by municipalities and verified by Municipal Managers.
Functions have been grouped into three main areas:
Development and town planning services
Technical services
Community services
Table 20: Grouping of functions
Development and town planning services
Technical services Community services
• Air pollution
• Building regulations
• Local tourism
• Municipal Airports
• Municipal Planning
• Pontoons, ferries, jetties,
piers, harbours
• Trading regulations
• Beaches and Amusement
Facilities
• Billboards and Public
Advertisements
• Control of public
nuisances
• Control of public liquor
trading
• Facilities for care, burial
• Electricity reticulation
• Municipal Public
Transport
• Storm Water
Management Systems
• Potable Water Supply
Systems
• Sanitation
• Cleansing
• Municipal roads
• Refuse removal, refuse
dumps and solid waste
disposal
• Street lighting
• Traffic and parking
• Housing
• Municipal Public Works
• Childcare facilities
• Firefighting services
• Municipal health
services
• Cemeteries, funeral
parlours, crematoria
• Local amenities
• Local sport facilities
• Markets
• Municipal parks and
recreation
• Public places
• Agriculture
• Disaster Management
• Libraries
• Traditional Authorities
52
of animals, pounds
• Fencing and fences
• Licensing of dogs
• Licensing of public food
trading
• Municipal abattoirs
• Noise pollution
• Pounds
• Street trading
• Environment and Nature
Conservation
• Vehicle licensing
• Economic Development
• Welfare
• Ambulance services
• Museums other than
national museums
• Municipal police and
security guards
• Other Health
Programmes
(HIV/AIDS, etc.)
According to Section 156(1) of the Constitution and Section 84(1) and (2) of the
Municipal Structures Act, many of these functions are local municipality functions.
However, Section 85(1) of the Municipal Structures Act stipulates that the MEC for
local government in a province may, subject to the provisions of this section, adjust
the division of functions and powers between a district and a local municipality as set
out in Section 84(1) or (2) by allocating, within a prescribed policy framework, any of
those functions or powers vested –
(a) in the local municipality, to the district municipality; or
(b) in the district municipality (excluding a function or power referred to in Section
84(1)(a), (b), (c), (d) (i), (o) or (p)) to the local municipality.
5.1 Development and town planning services
Table 21: Performance of functions (Development and town planning services)
53
Authority for
function
Provided by
PMS in place
By laws in place
Where is service
rendered
Equipment and
infrastructure available for
function
Air pollution Local External
Provider
No No Entire
Area
No
Building
regulations
Local Local Yes No Urban
Only
Yes
Local tourism Local District Yes Yes Entire
Area
Yes
Municipal
Airports
Local Local No No Entire
Area
Yes
Municipal
Planning
Local Local Yes Yes Entire
Area
No
Pontoons,
ferries, jetties,
piers, harbours
Local External
Provider
No No Entire
Area
No
Trading
regulations
Local Local No Yes Entire
Area
Yes
Beaches and
Amusement
Facilities
Local External
Provider
No No Entire
Area
No
Billboards and
Public
Advertisements
Control of
public
nuisances
Local External
Provider
No No Entire
Area
No
Control of
public liquor
trading
Local District No No Entire
Area
No
Facilities for
care, burial of
animals,
pounds
Local External
Provider
No No Entire
Area
No
Fencing and
fences
Local District No No Entire
Area
No
54
Authority for
function
Provided by
PMS in place
By laws in place
Where is service
rendered
Equipment and
infrastructure available for
function
Licensing of
dogs
Local External
Provider
No No Entire
Area
No
Licensing of
public food
trading
Local External
Provider
No No Entire
Area
No
Municipal
abattoirs
Local External
Provider
No No Entire
Area
No
Noise pollution Local External
Provider
No No Entire
Area
No
Pounds
Street trading Local Local No Yes Entire
Area
Not Required
Environment
and Nature
Conservation
Local External
Provider
No No Entire
Area
No
Vehicle
licensing
Economic
Development
Local Local Yes Yes Entire
Area
No
The table below provides an overview of budgets for the development and town
planning functions.
Table 22: Financial overview (Development and town planning services)
2016/17 2017/18
Operating expenditur
e
Income Capital expenditure
Operating budget
Estimated income
Estimated capital budget
Air pollution
Building
regulations
Local tourism 0 0 0 0 0 0
55
2016/17 2017/18
Operating expenditur
e
Income Capital expenditure
Operating budget
Estimated income
Estimated capital budget
Municipal
Airports
Municipal
Planning
Pontoons,
ferries, jetties,
piers, harbours
0 0 0 0 0 0
Trading
regulations
0 0 0 0 0 0
Beaches and
Amusement
Facilities
0 0 0 0 0 0
Billboards and
Public
Advertisements
Control of
public
nuisances
0 0 0 0 0 0
Control of
public liquor
trading
0 0 0 0 0 0
Facilities for
care, burial of
animals,
pounds
0 0 0 0 0 0
Fencing and
fences
0 0 0 0 0 0
Licensing of
dogs
0 0 0 0 0 0
Licensing of
public food
trading
0 0 0 0 0 0
Municipal
abattoirs
0 0 0 0 0 0
56
2016/17 2017/18
Operating expenditur
e
Income Capital expenditure
Operating budget
Estimated income
Estimated capital budget
Noise pollution 0 0 0 0 0 0
Pounds
Street trading 0 0 0 0 0 0
Environment
and Nature
Conservation
0 0 0 0 0 0
Vehicle
licensing
Economic
Development
0 0 0 0 0 0
Staffing for the development and town planning functions are detailed in the table
below.
Table 23: Staffing overview (Development and town planning services)
Staffing Qualifications (no. of staff) Staff vacancie
sTotal staff employed
Full-time Part-time
Bachelors degree and above
Technical qualifications directly related to function
Air
pollution
0
Building
regulatio
ns
2 2 0 1 2 4
Local
tourism
2 2 0 2 2 1
Municipal
Airports
6 6 0 0 0 0
Municipal
Planning
1 1 0 0
Pontoons
, ferries,
jetties,
piers,
0 0 0 0 0 0
57
Staffing Qualifications (no. of staff) Staff vacancie
sTotal staff employed
Full-time Part-time
Bachelors degree and above
Technical qualifications directly related to function
harbours
Trading
regulatio
ns
1 1 0 0 0 0
Beaches
and
Amusem
ent
Facilities
0 0 0 0 0 0
Billboard
s and
Public
Advertise
ments
0
Control
of public
nuisance
s
0 0 0 0 0 0
Control
of public
liquor
trading
0 0 0 0 0 0
Facilities
for care,
burial of
animals,
pounds
0 0 0 0 0 0
Fencing
and
fences
0 0 0 0 0 0
Licensing
of dogs
0 0 0 0 0 0
Licensing
of public
food
0 0 0 0 0 0
58
Staffing Qualifications (no. of staff) Staff vacancie
sTotal staff employed
Full-time Part-time
Bachelors degree and above
Technical qualifications directly related to function
trading
Municipal
abattoirs
0 0 0 0 0 0
Noise
pollution
0 0 0 0 0 0
Pounds 0
Street
trading
1 1 0 0 0 0
Environm
ent and
Nature
Conserv
ation
0 0 0 0 0
Vehicle
licensing
0
Economi
c
Develop
ment
8 8 0 0
Municipalities were also requested to indicate whether there is a backlog for each
function, and if so, the extent thereof. This, together with their own assessment of
service delivery and the levels of community satisfaction (f available), are detailed
below.
Table 24: Backlog and service delivery (Development and town planning services)
Backlog Delivery of function
Yes / No Extent of backlog Timeframe to address
Ranked assessment of service delivery from 1 (poor) to 10 (excellent)
Community satisfaction
Air pollution
Building Yes Completion 1 year None
59
Backlog Delivery of function
Yes / No Extent of backlog Timeframe to address
Ranked assessment of service delivery from 1 (poor) to 10 (excellent)
Community satisfaction
regulations Certificate,
Building
Inspections and
contravention
notice
Local tourism Yes BUDGET
CONSTRAINT
more than
5 years
1 SURVEYS CARRIED
OUT BY CTO
Municipal
Airports
Yes Safety and keeping
up to Aviation
Standards
more than
5 years
3 Aviation Audit and License
Municipal
Planning
Yes TOWN PLANNING
APPLICATIONS
1 year 4 None
Pontoons,
ferries, jetties,
piers, harbours
No 0 1 year 0 0
Trading
regulations
Yes insufficient
equipment to issue
licensing
more than
5 years
3 None
Beaches and
Amusement
Facilities
No 0 1 year 0 0
Billboards and
Public
Advertisements
Control of
public
nuisances
No 0 1 year 0 0
Control of
public liquor
trading
No 0 1 year 0 0
Facilities for
care, burial of
No 0 1 year 0 0
60
Backlog Delivery of function
Yes / No Extent of backlog Timeframe to address
Ranked assessment of service delivery from 1 (poor) to 10 (excellent)
Community satisfaction
animals,
pounds
Fencing and
fences
No 0 1 year 0 0
Licensing of
dogs
No 0 1 year 0 0
Licensing of
public food
trading
No 0 1 year 0 0
Municipal
abattoirs
No 0 1 year 0 0
Noise pollution No 0 1 year 0 0
Pounds
Street trading Yes insufficient
equipment to issue
licensing
more than
5 years
5 Insufficient space
allocated for the growing
number of traders, the
current allocated spot is
not big enough to house
traders, whilst other
traders do not have
shelter
Environment
and Nature
Conservation
No 0 1 year 0 0
Vehicle
licensing
Economic
Development
Yes Insufficient Budget
and equipment
more than
5 years
7 na
61
5.2 Technical services
Table 25: Performance of function (Technical services)
Authority for
function
Provided by
PMS in place
By laws in place
Where is service
rendered
Equipment and
infrastructure available for
function
Electricity
reticulation
Local Local Yes Yes Entire
Area
Yes
Municipal
Public
Transport
Storm Water
Management
Systems
Potable
Water
Supply
Systems
District District No No Entire
Area
No
Sanitation District District No No Entire
Area
No
Cleansing
Municipal
roads
Local Local Yes Yes Entire
Area
Yes
Refuse
removal,
refuse
dumps and
solid waste
disposal
Local Local Yes Yes
Street
lighting
Traffic and
parking
Yes
Housing Local External Yes No Entire No
62
Authority for
function
Provided by
PMS in place
By laws in place
Where is service
rendered
Equipment and
infrastructure available for
function
Provider Area
Municipal
Public Works
The table below provides an overview of budgets for the technical services functions.
Some observations include:
The electricity reticulation function has seen an increase of 100% in operating
expenditure between 2016/17 and 2017/18. Capital expenditure has
increased between the two financial years. Income for this function has
decreased by 0,42% between 2016/17 and 2017/18.
Table 26: Financial overview (Technical services)
2016/17 2017/18
Operating expenditure
Income Capital expenditure
Operating budget
Estimated income
Estimated capital budget
Electricity
reticulation
7000000 251059797 0 14000000 250000000 10000000
Municipal
Public
Transport
Storm Water
Management
Systems
Potable
Water
Supply
Systems
0 0 0 0 0 0
Sanitation 0 0 0 0 0 0
Cleansing
Municipal
63
2016/17 2017/18
Operating expenditure
Income Capital expenditure
Operating budget
Estimated income
Estimated capital budget
roads
Refuse
removal,
refuse
dumps and
solid waste
disposal
Street
lighting
Traffic and
parking
Housing 0 0 0 0 0 0
Municipal
Public Works
The table below details staffing information for the technical services functions,
including total staff employed, qualifications and vacancies.
Table 27: Staffing overview (Technical services)
Staffing Qualifications (no. of staff) Staff vacanciesTotal staff
employedFull-time
Part-time Bachelors degree and
above
Technical qualifications directly
related to function
Electricity
reticulation
42 42 0 0 2 6
Municipal
Public
Transport
0
Storm Water
Management
Systems
Potable
Water
0 0 0 0 0
64
Staffing Qualifications (no. of staff) Staff vacanciesTotal staff
employedFull-time
Part-time Bachelors degree and
above
Technical qualifications directly
related to function
Supply
Systems
Sanitation 0 0 0 0 0 0
Cleansing 0
Municipal
roads
172 0 0
Refuse
removal,
refuse
dumps and
solid waste
disposal
150 0 0 0
Street
lighting
0
Traffic and
parking
0
Housing 5 5 0 0 0 1
Municipal
Public Works
0
Municipalities were also requested to indicate whether there is a backlog for each
function, and if so, the extent thereof. This, together with their own assessment of
service delivery and the levels of community satisfaction (if available), are detailed
below.
Table 28: Backlog and service delivery (Technical services)
Backlog Delivery of function
Yes / No Extent of backlog Timeframe to address
Ranked assessment of service delivery from 1 (poor) to 10 (excellent)
Community satisfaction
65
Electricity
reticulation
Yes Access to
Electricity in Eskom
Area, Upgrading of
Subs, no SCADA
5 year 7 None
Municipal
Public
Transport
Storm Water
Management
Systems
Potable
Water
Supply
Systems
No 0 1 year 0 0
Sanitation No 0 1 year 0 0
Cleansing
Municipal
roads
Yes Number of roads
has potholes and
major deformation
3 year 5 None
Refuse
removal,
refuse
dumps and
solid waste
disposal
Street
lighting
Traffic and
parking
Housing Yes We have been
unable to provide
housing facilities in
certain areas which
have land legal and
bulk services
challenges.
1 year 8 None
Municipal
Public Works
66
5.3 Community services
Table 29: Performance of function (Community services)
Authority for
function
Provided by
PMS in place
By laws in place
Where is service
rendered
Equipment and
infrastructure available for
function
Childcare
facilities
Firefighting
services
Municipal
health
services
Local External
Provider
No No Entire
Area
No
Cemeteries,
funeral
parlours,
crematoria
Local Local Yes Yes Entire
Area
Yes
Local
amenities
Local Local Yes No Entire
Area
Yes
Local sport
facilities
Local Local No No Entire
Area
No
Markets
Municipal
parks and
recreation
Local Local No Yes Entire
Area
No
Public places
Agriculture Local Local Yes No Entire
Area
No
Disaster
Management
Libraries Local Local Yes Yes Entire
Area
Yes
Traditional
67
Authority for
function
Provided by
PMS in place
By laws in place
Where is service
rendered
Equipment and
infrastructure available for
function
Authorities
Welfare
Ambulance
services
Local External
Provider
No No Entire
Area
No
Museums
other than
national
museums
Local Local No No Entire
Area
No
Municipal
police and
security
guards
Other Health
Programmes
(HIV/AIDS,
etc.)
Local External
Provider
No No Entire
Area
No
The table below provides an overview of budgets for the community services
functions.
Table 30: Financial overview (Community services)
2016/17 2017/18
Operating expenditure
Income Capital expenditure
Operating budget
Estimated income
Estimated capital budget
Childcare
facilities
Firefighting
services
Municipal
health
services
0 0 0 0 0 0
68
2016/17 2017/18
Operating expenditure
Income Capital expenditure
Operating budget
Estimated income
Estimated capital budget
Cemeteries,
funeral
parlours,
crematoria
Local
amenities
Local sport
facilities
Markets
Municipal
parks and
recreation
Public
places
Agriculture 0 0 0 0 0 0
Disaster
Management
Libraries 2871000
Traditional
Authorities
Welfare
Ambulance
services
0 0 0 0 0 0
Museums
other than
national
museums
0 0 0 0 0 0
Municipal
police and
security
guards
Other Health
Programmes
(HIV/AIDS,
69
2016/17 2017/18
Operating expenditure
Income Capital expenditure
Operating budget
Estimated income
Estimated capital budget
etc.)
The table below details staffing information for the community services functions,
including total staff employed, qualifications and vacancies.
Table 31: Staffing overview (Community services)
Staffing Qualifications (no. of staff) Staff vacanciesTotal staff
employedFull-time
Part-time
Bachelors degree and
above
Technical qualifications directly related to
function
Childcare
facilities
0
Firefighting
services
0
Municipal
health
services
0 10 0 0 0 2
Cemeteries,
funeral
parlours,
crematoria
12 12 4 0 0 10
Local
amenities
26 26 0 0 0
Local sport
facilities
25 25 14 0 0 15
Markets 0
Municipal
parks and
recreation
30 30 6 0 0 20
Public
places
0
Agriculture 1 1 0 0 0 1
Disaster 0
70
Staffing Qualifications (no. of staff) Staff vacanciesTotal staff
employedFull-time
Part-time
Bachelors degree and
above
Technical qualifications directly related to
function
Management
Libraries 19 19 0 0 1 11
Traditional
Authorities
0
Welfare 0
Ambulance
services
0 0 0 0 0 0
Museums
other than
national
museums
3 3 0 0 1 3
Municipal
police and
security
guards
0
Other Health
Programmes
(HIV/AIDS,
etc.)
0
Municipalities were also requested to indicate whether there is a backlog for each
function, and if so, the extent thereof. This, together with their own assessment of
service delivery and the levels of community satisfaction (f available), are detailed
below.
Table 32: Backlog and service delivery (Community services)
71
Backlog Delivery of function
Yes / No Extent of backlog Timeframe to address
Ranked assessment of service delivery from 1 (poor) to 10 (excellent)
Community satisfaction
Childcare
facilities
Firefighting
services
Municipal
health
services
No 0 1 year 0 0
Cemeteries,
funeral
parlours,
crematoria
Yes Procuring Land &
EIA Reports
3 year 4 Local newspapers
Local
amenities
Yes Equipment more than
5 years
4 public participation
Local sport
facilities
Yes Upgrading of
facilities & plant &
equipment
more than
5 years
3 Local Newspapers
Markets
Municipal
parks and
recreation
Yes plant & equipment
& operators
more than
5 years
3 Local Newspapers
Public
places
Agriculture Yes Insufficient Budget
for implementation
of projects
more than
5 years
3 Not Applicable
Disaster
Management
Libraries Yes more libraries
required
more than
5 years
6 Monthly Stats
Traditional
Authorities
72
Backlog Delivery of function
Yes / No Extent of backlog Timeframe to address
Ranked assessment of service delivery from 1 (poor) to 10 (excellent)
Community satisfaction
Welfare
Ambulance
services
No 0 1 year 0 0
Museums
other than
national
museums
Yes Insufficient Budget more than
5 years
5 visitor registers sent on
monthly basis to
arts&culture
Municipal
police and
security
guards
Other Health
Programmes
(HIV/AIDS,
etc.)
6. Conclusion and recommendations
This report serves to provide an overview of both the environmental situation, and
documented capacity, of the municipality under review. This has been extracted
from information provided by the municipality in the form of responses to
questionnaires, as well as additionally sourced information from National Treasury,
Stats SA, CoGTA etc., where municipalities did not provide sufficient information.
More detailed capacity conclusions, by municipality and function, are contained in
the provincial reports.
Listed below are generic recommendations emerging from the study.
73
6.1.1 Updating of information on Powers and Functions
Creation of database of all Gazetted MEC determinations in terms of Division
of Powers and Functions
Creation of database of all assignments and documentation
Review of all SLAs particularly with ESKOM
Annual update on what functions are being performed where
o Linked to this, focus on improving the understanding of powers and
functions across municipalities. It is clear from the municipal
submissions, and lack of budget and staffing data, that there is often a
limited understanding of powers and functions. This therefore impacts
the MDB’s ability to have an accurate and comprehensive assessment
of capacity.
6.1.2 Identification of capacity requirements to exercise particular powers and
functions
The study has indicated that many municipalities are unaware of how different
powers and functions are exercised in each municipalities. Given that there
are clear variations across provinces both in terms of the location of Powers
and Functions (District/Local/Both) and how each function is exercised,
working in consultation with municipalities, Provincial COGTAs could define
more clearly what it means to exercise each Power and Function so as to be
better prepared to engage with provincial and national treasuries around the
formulae used for the equitable share and other grants/transfers.
6.1.3 MECs could identify areas in which they need to rationalise the division of
powers and functions
74
This study has provided a baseline of what functions are being exercised
where at a category B and C level across South Africa.
As indicated above, given that the information is largely based on what
municipalities have provided, provinces need to engage in a process to
confirm these divisions of powers and functions, editing where needed and
could initiate further legislative provisions where needed, including making
formal requests to the MDB if necessary.
75
Appendix 1: Definitions
Function Definition Comment
Air pollution “Air pollution” means any change in the composition of the air by smoke,
soot, dust (including fly ash), cinders, solid particles kind, gases, fumes,
aerosols and odorous.
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the air pollution function is a local
municipality function. However, as indicated the air pollution function
may, subject to the provisions stated above, be adjusted by the MEC for
local government.
beaches and
amusement
facilities
“Beaches” means the area for recreational opportunities and facilities along
the sea shore available for public use and any other aspect in this regard
which falls outside the competence of the national and provincial
government.
“Amusement facilities” means a public place for entertainment.
In relation to the local municipality:
The establishment, operation, management, control and regulation of
amusement facilities and beach facilities.
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the beaches and amusement facilities
function is a local municipality function. However, as indicated the
beaches and amusement facilities function may, subject to the provisions
stated above, be adjusted by the MEC for local government.
Billboards and
the display of
advertisements
in public places
“Billboards and the display of advertisements in public places” means:
The display, regulation and control of written or visual descriptive material,
any sign or symbol or light that is not intended solely for illumination or as a
warning against danger which promotes the sale and / or encourages the
use of goods and services found in:
• Streets
• Roads
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the billboards and public advertisements
function is a local municipality function. However, as indicated the
billboards and public advertisements function may, subject to the
provisions stated above, be adjusted by the MEC for local government.
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Function Definition Comment
• Thoroughfares
• Sanitary passages
• Squares or open spaces and or
• Private property.
The above definition excludes any aspect that may be covered by
provincial or national legislation.
Building
regulations
“Building regulations” means the regulation, through by-laws, and legislated
building regulations, of any temporary or permanent structure attached to,
or to be attached to, the soil within the area of jurisdiction of a municipality,
which must at least provide for:
• Approval of building plans,
• Building inspections,
• Issue of completion certificates, and
Control of operations and enforcement of contraventions of building
regulations if not already provided for in national and provincial legislation.
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the building regulations function is a local
municipality function. However, as indicated the building regulations
function may, subject to the provisions stated above, be adjusted by the
MEC for local government.
Cemeteries,
funeral parlours
and crematoria
“Cemeteries, funeral parlours and crematoria” means:
The establishment, conduct and control of facilities for the purpose of
disposing of human and animal remains.
In addition, in relation to the district municipality, it means the
establishment, conduct and control of cemeteries and crematoria serving
the area of a major proportion of municipalities in the district.
And in relation to the local municipality, it means the establishment,
conduct and control of cemeteries and crematoria serving the area of the
local municipality only.
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the cemeteries, funeral parlours and
crematoria function is a shared municipal function, with district and
functions as stipulated above. However, as indicated the cemeteries,
funeral parlours and crematoria function may, subject to the provisions
stated above, be adjusted by the MEC for local government.
Child care
facilities
“Child care facilities” means ensuring a safe and healthy environment within
facilities pertaining to child care. The function is in respect of regulation of
Section 297 of the Children’s Bill 70 of 2003 makes provision for
inspection by municipal officials of child and youth care centres, partial
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Function Definition Comment
the facilities. care facilities, shelters and drop-in centres to determine compliance to
any structural, safety, health and other requirements of the municipality.
The bill defines child and youth care centres, partial care facilities,
shelters and drop-in centres.
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the child care facilities function is a local
municipality function. However, as indicated the child care facilities
function may, subject to the provisions stated above, be adjusted by the
MEC for local government.
Cleansing “Cleansing” means the cleaning of public streets, roads and other public
spaces, either manually or mechanically.
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the cleansing function is a local
municipality function. However, as indicated the cleansing function may,
subject to the provisions stated above, be adjusted by the MEC for local
government.
Control of public
nuisance
“Control of public nuisance” means the regulation, control and monitoring of
any activity, condition or thing interferes with the rights of the community by
causing damage, annoyance or inconvenience to a person or a community.
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the control of public nuisance function is
a local municipality function. However, as indicated the control of public
nuisance function may, subject to the provisions stated above, be
adjusted by the MEC for local government.
Control of
undertakings
that sell liquor to
the public
“Control of undertakings that sell liquor to the public” means the control of
undertakings that sell liquor to the public that is permitted to do so in terms
of provincial legislation, regulation and licenses, and includes an inspection
service to monitor liquor outlets for compliance to license requirements in
as far as such control and regulation are not covered by provincial
legislation.
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the "Control of undertakings that sell
liquor to the public" function is a local municipality function. However, as
indicated the "Control of undertakings that sell liquor to the public"
function may, subject to the provisions stated above, be adjusted by the
MEC for local government.
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Function Definition Comment
Domestic waste-
water and
sewage disposal
systems
“Domestic waste-water and sewage disposal systems” means:
The establishment or procurement, where appropriate, provision, operation,
management, maintenance and regulation of a system, including
infrastructure, for the collection, removal, disposal and/or purification of
human excreta and domestic waste-water to ensure minimum standard of
services necessary for safe and hygienic households.
According to Section 156(1) of the Constitution and Section 84(1)
Municipal Structures Act, the water and sanitation services function is a
district municipality function. However, as indicated the water and
sanitation services function may, subject to the provisions stated above,
be adjusted by the MEC for local government.
The functions and powers referred to in subsection (1) include (b) potable
water supply systems and (d) domestic waste-water and sewage disposal
systems.
Electricity
reticulation
“Electricity reticulation” means bulk supply of electricity, which includes for
the purposes of such supply, the transmission, distribution and, where
applicable, the generation of electricity, and also the regulation, control and
maintenance of the electricity reticulation network, tariff policies, monitoring
of the operation of the facilities for adherence to standards and registration
requirements, and any other matter pertaining to the provision of electricity
in the municipal areas.
According to Section 156(1) of the Constitution and Section 84(1) Municipal
Structures Act, the electricity reticulation function is a district municipality
function.
However, Section 84(3)(a) of the Municipal Structures Act stipulates that
the Minister may, by notice in the Government Gazette and, after
consultation with the Cabinet member responsible for the functional area in
question, the MEC for local government in the province and, if applicable,
subject to national legislation, authorize a local municipality to perform a
function or exercise a power mentioned in subsection (1)(b), (c), (d) or (i) in
its area or any aspect of such function or power.
According to Section 156(1) of the Constitution and Section 84(1)
Municipal Structures Act, the electricity reticulation function is a district
municipality function. However, as indicated the electricity reticulation
function may, subject to the provisions stated above, be adjusted by the
MEC for local government.
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Function Definition Comment
The functions and powers referred to in subsection (1) include (c) the
provision of electricity.
Facilities for the
accommodation,
care and burial
of animals
“Facilities for the accommodation, care and burial of animals” means the
provision of and/or the regulation, control and monitoring of facilities which
provide accommodation and care for well or sick animals and the burial or
cremation of animals, including monitoring of adherence to any standards
and registration requirements outlined in legislation.
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the facilities for the accommodation care
and burial of animals function is a local municipality function. However,
as indicated the facilities for the accommodation care and burial of
animals function may, subject to the provisions stated above, be adjusted
by the MEC for local government.
Fencing and
fences
“Fencing and fences” means ensuring the provision and maintenance
and/or regulation of any boundary or deterrents to animals and pedestrians
along streets or roads.
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the fencing and fences function is a local
municipality function. However, as indicated the fencing and fences
function may, subject to the provisions stated above, be adjusted by the
MEC for local government.
Fire fighting In relation to the district municipality, “fire fighting” means fire brigade
services serving the area of the district municipality as a whole intended to
be employed for preventing the outbreak or spread of a fire, and includes-
(i) planning, co-ordination and regulation of fire services;
(ii) specialised fire fighting services such as mountain, veld and chemical
fire services;
(iii) co-ordination of the standardisation of infrastructure, vehicles,
equipment and procedures;
(iv) training of fire officers.
In relation to the local municipality, “fire fighting” means any function not
included in the definition applicable to a district municipality, including
fighting and extinguishing of all fires; the rescue and protection of any
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the fire fighting function is a shared
municipal function, with district and functions as stipulated above.
However, as indicated the fire fighting function may, subject to the
provisions stated above, be adjusted by the MEC for local government.
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Function Definition Comment
person, animal or property in emergency situations not covered by other
legislation or powers and functions.
Licensing and
control of
undertakings
that sell food to
the public
“Licensing and control of undertakings that sell food to the public” means:
Ensuring the quality and the maintenance of food safety and hygiene
related environmental health standards through regulation, a issuance of a
certificate of acceptability and monitoring of any place that renders in the
course of any commercial transaction the supply/handling of food intended
for human consumption. Implement policy and regulations 'as provided for
and prescribed in terms of the Foodstuffs, Cosmetics and Disinfectants Act,
1972 (Act 54 of 1972) and the National Health Act, (Act 61 of 2003),
including the relevant regulations published under the mentioned Acts.
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the licensing and control of undertakings
that sell food to the public function is a local municipality function.
However, as indicated the licensing and control of undertakings that sell
food to the public function may, subject to the provisions stated above, be
adjusted by the MEC for local government.
Licensing of
dogs
“Licensing of dogs” means the control over the number and health status of
dogs through a licensing mechanism.
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the licensing of dogs function is a local
municipality function. However, as indicated the licensing of dogs
function may, subject to the provisions stated above, be adjusted by the
MEC for local government.
Local amenities “Local amenities” means:
The provision, management, preservation and maintenance of any
municipal place, land, and building reserved for the protection of places or
objects of scenic, natural, historical and cultural value or interest and the
provision and control of any such or other facility for public use but
excludes such places, land or buildings falling within competencies of
national and provincial governments.
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the local amenities function is a local
municipality function. However, as indicated the local amenities function
may, subject to the provisions stated above, be adjusted by the MEC for
local government.
Local tourism In relation to the district municipality, “local tourism” means the promotion of
local tourism for the area of the district municipality.
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the local tourism function is a shared
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Function Definition Comment
In relation to the local municipality, “local tourism” means the promotion,
marketing and, if applicable, the development, of any tourist attraction
within the area of the municipality with a view to attract tourists; to ensure
access, and municipal services to such attractions, and to regulate,
structure and control the tourism industry in the municipal area subject to
any provincial and national legislation, and without affecting the
competencies of national/provincial government pertaining to “nature
conservation”, “museums”, “libraries” and “provincial cultural matters”.
municipal function, with district and functions as stipulated above.
However, as indicated the local tourism function may, subject to the
provisions stated above, be adjusted by the MEC for local government.
Markets “Fresh Produce Markets” means:
The establishment, operation, management, conduct, regulation and
control of markets restricted to the selling of fresh products, vegetables,
fruit, flowers, fish and meat.
“Markets” means:
The establishment, operation, management, conduct, regulation and/or
control of markets other than fresh produce markets including market
permits, location, times, conduct etc.
In relation to a District Municipality it also means:
The establishment, conduct and control of fresh produce markets
serving the area of a major proportion of the municipalities in the
district
In relation to a Local Municipality it also means:
The establishment, conduct and control of fresh produce markets serving
the local municipality area only
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the markets function is a shared
municipal function, with district and functions as stipulated above.
However, as indicated the markets function may, subject to the provisions
stated above, be adjusted by the MEC for local government.
Municipal
abattoirs
“Municipal abattoirs” means
The establishment, conduct and/or control of facilities for the slaughtering
of livestock and poultry
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the municipal abattoirs function is a
shared municipal function, with district and functions as stipulated above.
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Function Definition Comment
In relation to a District Municipality it also means:
The establishment, conduct and control of abattoirs serving the
area of a major proportion of the municipalities in the district
In relation to a Local Municipality it also means:
The establishment, conduct and control of abattoirs serving the local
municipality area only.
However, as indicated the municipal abattoirs function may, subject to the
provisions stated above, be adjusted by the MEC for local government.
Municipal
Airport
“Municipal Airport” means a demarcated area on land or water or a building
which is used or intended to be used, either wholly or in part, for the arrival
or departure of aircraft which includes the establishment and maintenance
of such facility including all infrastructure and services associated with an
airport, and the regulation and control of the facility, but excludes airports
falling within the competence of national and provincial governments.
Additionally, in relation to the district it is a “municipal airport” serving the
area of the district municipality as a whole.
In relation to the local municipality it is a “municipal airport” serving the area
of the local municipality only.
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the municipal airports function is a shared
municipal function, with district and functions as stipulated above.
However, as indicated the municipal airports function may, subject to the
provisions stated above, be adjusted by the MEC for local government.
Municipal health
services
The National Health Act 61 of 2003 defines ‘municipal health services’ as:
a) water quality monitoring;
b) food control;
c) waste management;
d) control of premises;
e) communicable disease control;
f) vector control;
g) environmental pollution control;
h) disposal of the dead; and
i) chemical safety,
According to Section 156(1) of the Constitution and Section 84(1)
Municipal Structures Act, the municipal health services function is a
district municipality function. However, as indicated the municipal health
services function may, subject to the provisions stated above, be adjusted
by the MEC for local government.
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Function Definition Comment
but excludes port health, malaria control and control of hazardous
substances.
Municipal parks
and recreation
“Municipal parks and recreation” means
The provision, management, control and maintenance of any land, gardens
or facility set aside for recreation, sightseeing and/or tourism and includes
playgrounds but excludes sport facilities.
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the municipal parks and recreation
function is a local municipality function. However, as indicated the
municipal parks and recreation function may, subject to the provisions
stated above, be adjusted by the MEC for local government.
Municipal
planning
“Municipal planning” means the compilation and implementation of an
integrated development plan in terms of Chapter 5 of the Municipal
Systems Act 32 of 2000 and the regulations to this act, particularly the
regulations published under government notice R796 in 2001: Local
Government: Municipal Planning and Performance Management
Regulations. Municipal Planning includes the preparation of spatial
development frameworks, as a sectoral plan forming part of integrated
development plan.
Additionally, in relation to the district municipality “municipal planning”
means:
• Integrated development planning for the district as a whole,
including a framework for integrated development plans of all
municipalities in the area of the district municipality.
Additionally, in relation to the local municipality “municipal planning” means:
• Integrated development planning for the local municipality in
accordance with the framework for integrated development plans
prepared by the district municipality
Development and implementation of a town planning scheme or land use
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the municipal planning function is a
shared municipal function, with district and functions as stipulated above.
However, as indicated the municipal planning function may, subject to the
provisions stated above, be adjusted by the MEC for local government.
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Function Definition Comment
management scheme for the municipality including administration of land
use development applications in the form of special consents, rezonings
and departures.
Municipal public
transport
“Municipal public transport” means:
In relation to the local municipality the regulation and control, and where
applicable, the provision of:
• Services for the carriage of passengers, whether scheduled or
unscheduled, operated on demand along a specific route or routes
or, where applicable, within a particular area
• Scheduled services for the carriage of passengers, owned and
operated by the municipality, on specific routes
In relation to the district:
The regulation of passenger transport services.
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the Municipal Public Transport function is
a shared municipal function, with district and functions as stipulated
above. However, as indicated the municipal public transport function
may, subject to the provisions stated above, be adjusted by the MEC for
local government.
Municipal roads “Municipal roads” means:
The construction, maintenance, and control of a road which the public has
the right to and includes, in addition to the roadway the land of which the
road consists or over which the road extends and anything on that land
forming part of, connected with, or belonging to the road.
In relation to a district municipality it also means:
Municipal roads which form an integral part of a road transport
system for the area of the district municipality as a whole.
In relation to a local municipality it also means:
A street in a built-up area.
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the municipal roads function is a shared
municipal function, with district and functions as stipulated above.
However, as indicated the municipal road function may, subject to the
provisions stated above, be adjusted by the MEC for local government.
Noise pollution “Noise pollution” means the control and monitoring of any noise that
adversely affects human health or well-being or the ecosystems useful to
mankind, now or in the future.
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the noise pollution function is a local
municipality function. However, as indicated the noise pollution function
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Function Definition Comment
may, subject to the provisions stated above, be adjusted by the MEC for
local government.
Pontoons,
ferries, jetties,
piers and
harbours
“Pontoons, ferries, jetties, piers and harbours” means the regulation of
pontoons, ferries, jetties, piers and harbours, excluding the regulation of
international and national shipping and matters related thereto, and matters
falling within the competence of national and provincial governments.
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the pontoons, ferries, jetties, piers and
harbours function is a local municipality function. However, as indicated
the pontoons, ferries, jetties, piers and harbours function may, subject to
the provisions stated above, be adjusted by the MEC for local
government.
Potable water
supply systems
“Potable water supply systems” means:
The establishment or procurement, where appropriate, operation,
management and regulation of a potable water supply system, including the
services and infrastructure required for the regulation of water
conservation, purification, reticulation and distribution; bulk supply to local
supply points, metering, tariffs setting and debt collection; and provision of
appropriate education so as to ensure reliable supply of a sufficient quantity
and quality of water and effective water use amongst end-users, including
informal households, to support life and personal hygiene.
According to Section 156(1) of the Constitution and Section 84(1)
Municipal Structures Act, the water and sanitation services function is a
district municipality function. However, as indicated the water and
sanitation services function may, subject to the provisions stated above,
be adjusted by the MEC for local government.
The functions and powers referred to in subsection (1) include (b) potable
water supply systems and (d) domestic waste-water and sewage disposal
systems.
Pounds “Pounds” means the provision, management, maintenance and control of
any area or facility set aside by the municipality for the securing of any
animal or object confiscated by the municipality in terms of its by laws.
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the pounds function is a local municipality
function. However, as indicated the pounds function may, subject to the
provisions stated above, be adjusted by the MEC for local government.
Public places “Public places” means the management, maintenance and control of any
land or facility owned by the municipality for public use.
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the public places function is a local
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Function Definition Comment
municipality function. However, as indicated the public places function
may, subject to the provisions stated above, be adjusted by the MEC for
local government.
Refuse removal,
refuse dumps
and solid waste
disposal
“Refuse removal, refuse dumps and solid waste disposal” means the
removal of any household or other waste and the disposal of such waste in
an area, space or facility established for such purpose, and includes the
provision, maintenance and control of any infrastructure or facility to ensure
a clean and healthy environment for the inhabitants of a municipality
In relation to the District Municipality it means:
Solid waste disposal sites, in so far as it relates to-
i. the determination of a waste disposal strategy for the district as a
whole;
ii. the regulation of waste disposal strategy for the district as a whole;
iii. the establishment, operation and control of waste disposal sites,
bulk waste transfer facilities and waste disposal facilities for more
than one local municipality in the district.
In relation to the Local Municipality it means:
i. The determination of a waste disposal strategy for the local
municipality only
ii. The regulation of local waste disposal for the local municipality
only
iii. The collection and removal of waste and transporting to a local
waste disposal site, bulk transfer facility and district waste disposal
site
The establishment, operation and control of waste disposal sites, bulk
waste transfer facilities and waste disposal facilities for the local
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the refuse removal, refuse dumps and
solid waste disposal function is a shared municipal function, with district
and functions as stipulated above. However, as indicated the refuse
removal, refuse dumps and solid waste disposal function may, subject to
the provisions stated above, be adjusted by the MEC for local
government.
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Function Definition Comment
municipality only
Storm water
management
systems
“Storm water management systems in built-up areas” means the
management of systems to deal with storm water in built-up areas.
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the storm water management systems
function is a local municipality function. However, as indicated the storm
water management systems function may, subject to the provisions
stated above, be adjusted by the MEC for local government.
Street lighting “Street lighting” means the provision and maintenance of lighting for the
illuminating of streets.
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the street lighting function is a local
municipality function. However, as indicated the street lighting function
may, subject to the provisions stated above, be adjusted by the MEC for
local government.
Street trading “Street trading” means the control, regulation and monitoring of the selling
of goods and services along a public pavement, road reserve and other
public places but excluding fresh produces markets as defined above.
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the street trading function is a local
municipality function. However, as indicated the street trading function
may, subject to the provisions stated above, be adjusted by the MEC for
local government.
Trading
regulations
“Trading regulations” means the regulation of any area facility and/or
activity related to the trading of goods and services within the municipal
area not already being regulated by national and provincial legislation.
According to Section 156(1) of the Constitution and Section 84(1) and (2)
of the Municipal Structures Act, the trading regulations function is a local
municipality function. However, as indicated the trading regulations
function may, subject to the provisions stated above, be adjusted by the
MEC for local government.
Traffic and “Traffic and parking” means the management and regulation of traffic and According to Section 156(1) of the Constitution and Section 84(1) and (2)
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Function Definition Comment
parking parking within the area of the municipality including but not limited to, the
control over operating speed of vehicles on municipal roads but excluding
any provincial competences as specified in legislation.
of the Municipal Structures Act, the traffic and parking function is a local
municipality function. However, as indicated the traffic and parking
function may, subject to the provisions stated above, be adjusted by the
MEC for local government.
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Appendix 2: Inkosi Langalibalele Amalgamation Process
Provincial context
The municipal boundary redetermination process is not static. In the most recent
period of boundary redetermination, from 2011 culminating in the 2016 local
government elections, the overall number of municipalities was reduced from 278 to
257 municipalities, but with significant changes made to many boundaries. In broad
terms, the boundary changes in this period can be classified as:
No changes: Municipalities where there were no changes to municipal
boundaries;
Slight changes: where the boundary change was not considered
significant; and
New or merged: where either a new municipality was created or two or
more municipalities or major parts of a municipality were merged.
The 257 municipalities consist of eight Category A, 205 Category B and 44 Category
C municipalities. Some 22 of these new municipalities which came into effect after
the August 2016 elections, were newly merged municipalities, and another 74
municipalities had slight changes to the boundaries of the municipalities.
The significant reduction in the number of municipalities between 2011 and 2016
resulted from two processes:
Just under half of these mergers resulted from processes prior to 2013
where often MECs requested the MDB to consider creating more viable
municipalities and then
In 2015 the remainder arose from the Minister of COGTA conducted an
assessment across the whole country on the functionality and viability of
municipalities. After receiving suggestions for redemarcation from MECs
he invoked Section 22(2) of the Demarcation Act for a redetermination of
certain municipalities in the country.90
In terms of the 2011 municipal boundaries, only 112 out of the 226 Category B
municipalities (the 2011 municipal boundaries) did not have their boundaries
changed. This meant that of the 114 municipalities that did change, some 72 had
relatively small changes made and the remaining 42 municipalities were reduced to
only 21 municipalities, through mergers or the disestablishment of an existing
municipality and its area partitioned off to other existing municipalities.
There was an overall reduction of 21 Category B municipalities. Some had a slight
change in boundary while others had a major change such as the amalgamation of
two or even three municipalities. The change in boundaries differed significantly
across provinces, with Gauteng and the Western Cape having no really significant
changes in municipal boundaries, compared to the North West, Limpopo, KwaZulu-
Natal and Eastern Cape provinces which had more significant changes.
Table 33: Changes to Category B Municipalities
Category by
Province
New Merged % Slight % None % Grand Total
EC 4 12,9 11 35,5 16 51,6 31
FS 0,0 5 27,8 13 72,2 18
GT 1 16,7 0,0 5 83,3 6
KZN 6 14,0 20 46,5 17 39,5 43
LIM 7 31,8 7 31,8 8 36,4 22
MP 1 5,9 3 17,6 13 76,5 17
NC 1 3,8 6 23,1 19 73,1 26
NW 1 5,6 13 72,2 4 22,2 18
WC 0,0 7 29,2 17 70,8 24
Grand Total 21 10,2 72 35,1 112 54,6 205
The following map indicates, in general, where the changes in municipal boundaries
were in the province of KwaZulu-Natal.
Figure 36: KwaZulu-Natal changes in municipal boundaries
91
Inkosi Langalibalele resulted from the merger of two or more Category B
municipalities.
Municipal Context
At the outset it should be indicated that in all of the redemarcations the MDB
considers a complex set of factors and so there is not one or a few reasons for each
amalgamation. In many of the cases, it is clear that there were serious problems in
at least one of the affected municipalities in terms of overall governance, service
delivery and/or lack of an economic base. Very rarely were issues such as political
representation suggested as reasons for mergers even though in almost all mergers,
where a large municipality merged with a small one, the latter ended up having fewer
councillors than before.
It must be emphasised, though, that the MDB by law goes through a process of
investigation and must also consider each of the Section 24 Objectives and Section
25 Criteria for demarcation before finalising their recommendation. It should also be
recognised that the MDB has also rejected some of the proposed mergers.
92
Clearly, merging municipalities or incorporating major parts of one municipality into
another leads to potentially quite significant changes to the population and area to be
administered by the new municipality. Thirdly, a number of the municipalities are
also losing population, possibly due to migration and/or increasing urbanisation.
This has meant that many smaller municipalities, and particularly those without a
rates base, have become even more financially unviable. Finally, in some cases,
more urbanised municipalities have been merged.
The following table indicates the change in population and area in the merger which
led to the formation of this municipality:
Table 34: Summary of merger and incorporation
# CURRENT PREVIOUSCat
CurrentMunicipality Name
2016 Code
Pop’n.20
Area (2016)
Municipality Name
Earlier Code
Land Area
Pop’n.
Growth 2001-2011
# CURRENT PREVIOUS10
B Inkosi Langalibalele
KZN237
196195
3398 Umtshezi KZN234 1972
83153 38,39
Imbabazane KZN236 1426
113073
-6,26
What does appear to be quite common is that mergers have occurred between, on
the one hand, quite small and sparsely populated municipalities, but which on the
other hand are contiguous to a larger, usually better resourced municipality. This
situation gets exacerbated with increasing urbanisation and de-population of some
rural areas. It should be noted, though, that there are no doubt other contextual
issues which have influenced such redemarcations, and in sub-sections below one
finds poor governance and service delivery being found in at least one of each of the
merged municipalities. This undoubtedly influences the MDB in its decision-making
process.
Municipality Settlement Reality
20 Population based on 2011 Census93
A second set of observations can be drawn through analysing the broad settlement
patterns contained in each of the municipalities involved in mergers. The following
table provides such information and it provides for this redemarcation:
The degree of urbanisation: measured either in percentage terms (as built-
up area) or the area of high density (including average density in such
areas greater than 500 persons per square kilometre);
The size of each municipal population as well as its population growth
between censuses.
Whilst each of the mergers had its own specific contexts to be dealt with by the
MDB, some of the general points to be drawn from this are as follows:
The degree of urbanisation varied significantly between and within
municipalities being merged. For example, in the case of Maletswai and
Gariep, both were highly urbanised, whilst in the case of Fetakgomo and
Greater Tubatse both former municipalities were not urbanised at all.
However these differ with the cases of the highly urbanised eThekwini and
the less urbanised Umdoni taking over separate parts of the former very
rural Vulamehlo.
The degree of urbanisation masks the fact that even in non-urbanised
areas, people live in relatively high densities. For example, the area (in
square kilometres) containing over 500 persons per square kilometre
varies markedly from The Big Five False Bay (0,11 sq. kms) and KwaSani
(1,42 sq. kms) having small areas of high densities compared with
eThekwini having over 1160 square kilometres at such higher densities.
The densities within such areas of high density also vary markedly across
all municipalities. Often such settlements are informal settlements in
which the demands for urban services end up being greater than in more
settled areas.
These data again reinforce the fact that there was significant differentiation across
municipalities being merged. In many of the demarcations, surrounding
municipalities which are functionally linked to a larger more urbanised municipality
have been incorporated or merged into the larger municipality. As is indicated 94
below, these larger municipalities often have a greater economic base than the
smaller municipality.
Table 35: Population density
Mun Code DEM#
% Urbanization
Area >500 pp/km2
Ave density >500pp/km2
Density
Umtshezi KZN234
10 49% 30,33 1495 42,17
Imbabazane KZN236
10 7% 85,87 783 79,29
Average B’s 52% 61,20
New Governance Arrangements
The mergers and/or incorporations finalised by the MDB have had an impact on
governance, particularly on the number of municipal council seats and the ratio of
registered voters to councillors. In order to analyse this, comparisons were made
between the 2011 and 2016 elections in terms of voters per councillor in the
municipalities which then merged.
Some of the trends are:
Generally speaking, the number of registered voters per councillor
increased over the five year period for all municipalities.
In the case of Category A mergers/incorporations, the differential between
the old voter/councillor ratio was greatest. For example, in Mangaung,
before Naledi merged with Mangaung, there were 1677 voters per
councillor but after the merger, the voter to councillor ratio changed to
4252, an increase of 250%. Similarly, in the case of eThekwini one finds
Vulamehlo having just over 2000 voters per councillor but with part of it
being incorporated into eThekwini this ratio shifted fourfold to over 8000
voters per councillor. Yet, the other section of Vulamehlo which was
incorporated into Umdoni found its voter to councillor ratio going down
slightly, from 2043 to 1943 voters to councillor.
95
In some cases, there was significant variation amongst merging
municipalities which meant that some municipalities that merged had a
significant increase in the number of voters per councillor. For example,
KwaSani had only 957 voters per councillor compared with Ingwe’s 2197
voters per councillor pre-merger. Once they merged, the voters per
councillor doubled in the case of KwaSani to almost 2000 voters per
councillor. Similar cases are found in the mergers of Mier/Khara Heis and
Baviaans/Camdeboo/Ikwezi.
On the whole, though, most of the mergers were of Category B
municipalities with roughly similar proportions of voters to councillors.
Finally, it should be noted, though, that changing ratios of voters to councillors does
not mean automatically that participatory democracy suffers, but rather that elected
councillors have larger areas to serve. Those elected do get increased remuneration
and particularly in category A municipalities are better resourced with access to
higher ratios of staff to population being served. On the other hand, such a situation
probably leads to greater contestation amongst potential councillors.
Table 36: Voters and councillors
Municipality
2011 CODE
# Reg Voters 2011
Voters per cllr 2011
2016 CODE
Registered
2016
Councillors
DEM
Voters per cllr 2016
Umtshezi KZN234
10 39559 2198 KZN237
97033 46 10 2109
Imbabazane
KZN236
10 50592 1946
Changed Economic Bases
Possibly the greatest differentiator between and within the merged municipalities
revolves around the economic bases of these municipalities. Whilst this is a reality
of apartheid spatial disparities, the point becomes very clear when examining the
economic bases of merged municipalities.
An analysis was undertaken of the economic bases of municipalities which merged
or were incorporated between 2011 and 2016. Firstly, levels of unemployment in
96
some of the mergers are far higher than the national average. This was true in the
cases of municipalities with high unemployment levels such as Fetakgomo (59%)
and Greater Tubatse (50%). In other mergers there were also significant disaprities
in unemployment levels between municipalities being merged. For example, Indaka
has an unemployment level of 57% compared with Emnambithi/Ladysmith of 34%,
and Ntambanana with levels of unemployment of 49% compared with Mhlathuze at
31%.
Secondly, in areas with high levels of unemployment one also expects there to be
higher than average levels of people finding sustenance from the informal sector.
Limpopo and Eastern Cape municipalities have particularly high levels of
involvement in the informal sector. For example, Thulamela, Mutale, Aganang,
Blouberg, Molemole and Makhado have very high levels of employment in the
informal sector.
Thirdly, there is great variation within and across merged municipalities in terms of
the proportion of their households that are of higher household income levels. It is
here where municipalities which have been merged have probably the greatest
differentiation. In the merger of Tsolwana/Inkwanca/Lukhanji, for example, Tsolwana
has only 8% of its households classified as higher income whilst in the case of
Lukhanji some 18% of the households are so classified. Indaka has only 6% of its
households higher income compared with eMnambithi/Ladysmith having 19% higher
income households.
Fourth, these disparities are also found if one examines the tax bases of
municipalities. For example, SARS publish the total personal tax assessments by
municipality and one finds significant differences in total taxable income across the
merged groups and within the merged municipalities. As one expects the total
personal taxable income is much greater in Category A municipalities than in the
Category B municipalities, but there are significant differences also within Category
B municipalities and particularly in each of the merger groups. In most of these
mergers, one (and in some cases two) municipality stands out as having a very
much higher total personal taxable income than the other municipalities being
merged. Clearly part of the merger process is to reduce disparities through such
mergers.
97
Finally, what is also noticeable is that in some of the mergers, one or more of the
municipalities being merged has an economic growth rate below that of the other
municipalities being merged. For example, Maletswai has a negative growth rate
compared with Gariep which had a positive growth rate. Most of the merged
municipalities in the Eastern Cape and KwaZulu-Natal had average economic growth
rates well below the average for other Category B municipalities.
It is clear from this data that merged municipalities have often been the result of one
or more municipalities having poor and limited economic bases compared with their
neighbouring municipality. Whilst again a reflection of the distorted apartheid spatial
patterns, demarcation often becomes a means through which the limited economic
bases of merging municipalities can be combined with the intention that through
reduced fixed costs of municipalities (single management structures etc) and merged
economic bases, there would be overall improvement in the living conditions of
people in such areas.
This is a very important point and reflects the spatial injustice described in the NDP.
Clearly, with limited redistribution occurring to reduce such spatial inequalities, there
will be increasing demands for communities on the edge of better resourced areas to
see demarcation as the means through which their economic potential and
opportunity will be increased.
Table 37: Employment and economic growth
Mun Code
DEM#
%Unemp
%Informal sector
% of High Income
Personal tax assessed (Million)
%Economic growth: 2013
Umtshezi
KZN234
10 37% 19% 19% 907,89 0,0037
Imbabazane
KZN236
10 49% 23% 8% 102,42 -0,0012
Personal Income Tax Bases
Merging municipalities are not only about striving to improve settlement patterns,
leadership and economic bases, but they are also about creating more financially
viable municipalities. This is not easy, because as was indicated above, the spatial
disparities in South Africa are significant. In a situation where Category A
98
municipalities have just over 30% of the population but they generate over 60% of
the GDP, and where significant portions of the land surface are not economically
viable, ways must be found to improve the revenue generation of municipalities and
through that make funds available to municipalities. If a municipality generates a
greater portion of the GDP than its share of the population, it is more likely to have
far greater access to human, financial and technical resources to better the lives of
its residents.
The merged municipalities were compared on a number of financial indicators
showing important differences within and between the merged municipalities. Firstly,
if one considers existing rates generation as an important indicator of revenue
generation (and which can pay for a number of key powers and functions of
municipalities) one finds significant differences across the municipalities in terms of
rates generation. uMhlathuze, for example, generates over R330 million in rates
compared with Ntambanana generating just more than R1 million. This means that
the rates per households differ widely across municipalities. Places like Hlabisa, for
example, generate only R77 in rates per household compared with the municipality it
merged with, the Big Five False Bay municipality which generates R1328 per
household.
Municipal expenditure per household also varies across municipalities, but
disparities are not always as wide. In part this is due to the fact that fewer
municipalities have the ability to generate rates, particularly from business, and
many are almost completely reliant on grants for income. But there are differences
and KwaSani spends over R4000 per household compared with Ingwe with which it
merged spending just over R1000 per household.
Finally, and linked to the above, the number of municipal staff serving municipalities
also varies significantly. Using an index of the total number of staff per household,
one finds that in each of the mergers at least one municipality has proportionately far
lower numbers of municipal staff serving the population. This clearly impacts on
service delivery and the ability of a municipality to perform its municipal powers and
functions.
Table 38: Rates and staffing
99
Municipality Code DEM#
Total rates (000s)
Rates phh
Mun Exp phh
Municipal Staff phh
Umtshezi KZN234
10 62923 3269 3895 0,026
Imbabazane KZN236
10 7711 345 1204 0,005
Merging Infrastructure Realities
Municipal redemarcations are as much about improving the capability of
municipalities to deliver services as they are about other factors and criteria.
Municipalities were compared in terms of the degree to which their households had
access to basic network services. Overall, what one finds is that in most of the
merged municipalities, high degrees of formalised areas were found, with generally
good access to water, but levels of sanitation differed across and within the mergers.
As expected, the degree to which traditional rural communities were found in the
merged municipalities also differs significantly. The degree to which a municipality
has large portions of its area including high proportions of people living in traditional
rural communities is also an indicator of some of the most underserviced areas in
South Africa. Vulamehlo and Ntambanana municipalities have higher than average
proportions of people living in traditional areas and both were disestablished with
another area of such high proportions of traditional authorities, Ingwe, being merged
with KwaSani. Levels of CAPEX, too, ranged significantly from places such as
Aganang (disestablished) with the lowest, to Category A municipalities like
eThekwini at almost R5000 per household and then to smaller places like Baviaans
and Naledi which also had high levels of CAPEX per household. These high levels
could, however, be due to small populations.
Table 39: Infrastructure
Mun Code DEM#
1016 HH
%Formal
%Traditional
%Water
%Sanitation
Capex phh
Umtshezi KZN234
10 23577 75,33 18,55 75,67 62,31 2374,53
Imbabazane
KZN236
10 23376 75,21 21,44 44,97 19,18 1128,06
100
Merging Municipal Financial Realities
Having merged the municipalities, the question could be posed: what impact do such
mergers have on municipal financial management? National Treasury has
developed a system of monitoring financial distress across municipalities. On an
annual basis, they provide measures of eight variables which are ranked between 1
(performing well) and 3 (performing poorly). These variables are:
Cash Coverage: this measures the amount of cash on hand a municipality
has to meet its monthly payments as and when they fall due. Treasury
suggest that municipalities should have three months of average operational
expenditure available at any time.
Cash Balance: Identifies whether cash shortages / bank overdrafts pose a
“chronic” problem for the municipality.
Reliance on capital transfers: Determine the levels at which municipalities
are able to generate own funds to finance revenue generating assets to
enhance and sustain revenue generating streams
Overspending: This measures the over-spending of operational budgets and
tests the effectiveness of municipal spending in accordance with resources
available to them, what is the credibility of the budget and are municipalities
able to adjust expenditure should planned revenue not materialize.
Underspending of capital budgets: This shows the effectiveness of
municipal spending – but also provides an indication of whether municipalities
are compromising on capital programmes to resolve cash flow challenges, are
there planning deficiencies which are impacting on service delivery.
Debtors growth – this shows the year on year growth in debtors and
provides information on whether the municipality is exercising fiscal effort in
collecting outstanding debt. It demonstrates the extent to which financial
distress is the result of poor debtor management.
101
Debtors as a percentage of own revenue: this shows the revenue
management capabilities of municipalities.
Creditors as a percentage of cash: Shows whether the municipality is able
to meet its monthly commitments.
When totalled, the scores range between 8 (performs excellently on all variables)
and 24 (performs poorly on all variables). Municipalities which receive a total score
of greater than or equal to 16 are deemed to be in financial distress.
The financial distress scores were examined for the 2015/16 and 2016/17 years
given that 2016/17 (at least from August 2016) was the year in which most of the
new demarcations came into existence.
The financial distress scores for the 2015/16 and 2016/17 years were examined
looking at how the before and after merger situation had changed. What one finds is
that:
20 municipalities had no change in their status before and after the formal
mergers occurred and these were evenly split with 10 merged municipalities
staying the same and not being in financial distress and 10 merged
municipalities staying the same and being in financial distress;
Two municipalities got worse and have been classified for 2016/17 as being in
financial distress; and
Four municipalities indicated progress from being in financial distress to not
being in financial distress in 2016/17.
These are useful results in that they do show some evidence that financial
management systems have stayed in place in the transition with some slight
evidence of matters improving.
Table 40: Financial distress
Pre-2016 Municipality Name
Muni Code
New Municipality Name
New Muni Code
DEM #
Financial Distress 2015/16
Financial Distress 2016/17
Umtshezi KZN234 Inkosi Langalibalele KZN237 10 YES YESImbabazane KZN236 -
102
Mergers and Audits
Given this indicative evidence that financial management seems to be largely in
place after the mergers, it was decided that audits also be investigated to see if they
have also largely remained without much change. In any merger it would be
expected that it would take some time for audits to stabilise given that systems may
not be synchronised, there is a need to rationalise and appoint new staff into an
integrated organogram, etc. The comparisons before and after the mergers indicate:
City of Tshwane: Same Unqualified with Findings
Kagisano-Molopo: Improved to Qualified
Enoch Mgijima: Same Disclaimer
Walter Sisulu: Worsened to Disclaimer
Mangaung: Worsened to Qualified
Rand West City: Same Unqualified with Findings
eThekwini: Same Unqualified with Findings
Umdoni: Same Unqualified with Findings
Ray Nkonyeni: Improve to Unqualified with no findings (Clean)
Raymond Mhlaba: Improve Unqualified with Findings
Inkosi Langalibalele: Not finalised
Alfred Duma: Worsened from Unqualified with Findings to Qualified
The New Big 5 False Bay: Improved to Unqualified with Findings
Dr Nkosazana Dlamini Zuma: Same Unqualified with Findings
Blouberg: Same Qualified
Molemole: Same Unqualified with Findings
Polokwane: Worsened from Unqualified with Findings to Qualified
Dawid Kruiper: Improved to Unqualified with Findings
Tlokwe-Ventersdorp: Worsened to Disclaimer103
Modimolle-Mookgopong: Not finalised
Tubatse Fetakgomo: Same Qualified
City of Mbombela: Same Unqualified with Findings
Collins Chabane: First audit Qualified
Makhado: Worsened Qualified to Adverse
Musina: Same Unqualified with Findings
Thulamela: Same Unqualified with Findings
Dr Beyers Naude: Worsened to Disclaimer
uMhlathuze: Same Unqualified with no findings (Clean)
Overall, one finds that
5 municipalities improved their audits
12 municipalities stayed the same
7 municipalities had worse audit results and
2 audits were not complete and one audit was new.
Importantly these results are far better than one would expect given that they show
there is no generalised immediate and negative impact on audit outcomes. Indeed,
with mergers you would expect audit results of merged municipalities to be worse
given that financial systems, policies and procedures have to be integrated, staff
need to be amalgamated and change management is the order of the day. In
addition, given that overall municipal audit results in South Africa worsened from
2015/16 to 2016/17, one would have expected merged municipalities to have
followed the same trend. There is no substantive evidence of this having happened.
Overall, one could argue these audit results are generally quite good given that 2016
was an election year with newly contracted persons being put in place and other staff
members having contracts come to an end. When coupled with the political
processes around elections one always expects results to be worse during that
period.
Table 41: Audit outcomes
104
Category
Municipality Name
Muni Code
Municipality Name
Muni Code
# 2015-16 Audit Outcome 2016/17
B2 Umtshezi KZN234
Inkosi Langalibalele
KZN237
10
Adverse/Disclaimer
Audit not finalised at legislated date
B2 Imbabazane KZN236
Unqualified with findings
Changing Senior Management Capacities
As indicated above, mergers come into effect on election dates and such dates also
bring with them the potential for significant changes in senior management and
instability due to electioneering and the like. It becomes useful then to measure the
degree to which the merged municipalities had less or more stability before or after
the elections. To analyse this the two most senior administrative positions were
examined to see how they would have changed between 2015/16 and 2016/17.
In the case of the Municipal Managers (MMs), one finds that:
Prior to the mergers there were 11 Acting MMs and after the mergers eight of
these 11 positions had become Permanent;
Prior to the mergers there were 18 Permanent MMs on contract, and of these
some 12 of these positions remain as permanent with four having acting
positions.
Overall, while the mergers may not have been responsible for improving the stability
of senior management in local governance, there is a good start on which to build
the merged municipalities.
Table 42: Municipal Managers
MM Acting 16/17 Permanent 16/17 Total
Acting 15/16 3 8 11
Permanent 15/16 4 12 16
Total 7 20 27105
MM Acting 16/17 Permanent 16/17 Total
In the case of the Chief Financial Officers (CFOs), one finds that:
Prior to the mergers there were 12 acting CFOs and after the mergers four of
these 12 positions had become permanent;
Prior to the mergers there were 15 permanent CFOs on contract, and of these
some 10 of these positions remain as permanent with five having acting
positions.
The situation here is not as good as that of the MMs and it would be important to
ensure that in all merged municipalities all positions should become permanent as
soon as is possible.
Table 43: Chief Financial Officers
CFO Acting 16/17 Permanent 16/17
Grand Total
Acting 15/16 8 4 12
Permanent
15/16
5 10 15
Grand Total 13 14 27
Finally, it should also be noted that only one of the 49 municipalities involved in the
2011-2016 mergers has been under a Section 139 intervention prior to the merger.
This municipality was Ventersdorp, but it should be stated that none of the merged
municipalities has been placed under Section 139 intervention.
Table 44: MM and CFO vacancies
Municipality Name
Muni Code
Municipality Name
Muni Code
# MM vacancy 15/16
MM vacancy 16/17
CFO vacancy 15/16
CFO vacancy 16/17
Umtshezi KZN234
Inkosi Langalibalele
KZN237
10
Acting Acting Permanent Permanent
Imbabazane
KZN236
Acting Acting
106
Summary Issues
The overall analysis of the MDB Capacity Assessment study reinforces that most of
the mergers/incorporations have been primarily where urban areas are being
merged with mainly rural areas. The areas of these municipalities have become very
large, and average population densities are becoming much lower by far. Council
representation and the number of wards generally reduces. Most incorporated areas
have a history of having been poorly governed.
In all such cases a wide variety of areas are impacted upon through such
mergers or consolidations. These include21:
Infrastructure
o Integrating and consolidating programmes
o Upgrading of data services
o Repair and maintenance
o Eliminating backlogs
Administrations
o Rationalisation of services
o Change management costs
o Acquisition of new technology for human resources, financial and
payroll systems
o Harmonisation of systems
o Rationalisation of administrative policies
o Rationalisation of fees and tax rates
21 The Impact of Demarcations on the Financial Performance and Sustainability of Municipalities, Mkhululi Ncube and Nomfundo Vacu
107
o Harmonisation of asset registers
o Rationalisation of voters roll
o Merger management, coordination and communication costs
Human Resources
o Harmonisation of wages, salaries and allowance (wages are often
set at the highest level paid by separate municipalities)
o Harmonisation of human resources policies
o Harmonisation of councillor allowances
o Costs associated with retraining and retooling of workers
o Costs associated with staff redeployment
o Retrenchment or staff layoff costs
Debt
o Debt servicing costs
o Liabilities
o Irrecoverable consumer debt
Revenues and Expenditures
o Increase in expenditures due to wage and services rationalisation
o Tariffs
o Tariffs may increase for some consumers in previously low tariff
municipalities
Perverse Incentives
o Amalgamation offers municipalities an incentive to accumulate debt
so as to download this to a new municipality
o Last minute spending that result in budget overruns
Competition
108
o Diminished competition results in poor services
Overall, though, all the mergers to date reinforce the high levels of apartheid
differentiation where South Africa’s racial and spatial inequalities remain stark and
redemarcation is often seen as the best means of achieving redistribution.
109