MUNICIPAL PUBLIC ACCOUNTS COMMITTEES (MPACS)

CONFERENCE ON LOCAL GOVERNMENT LAWNELSON MANDELA METROPLOLITAN UNIVERSITY19 – 20 NOVEMBER 20102

SERAJ JOHAAR

INTRODUCTION

• NT GUIDELINE in August 2011 encouraging municipalities to establish MPAC’s

• MPAC must exercise oversight over the executive obligations of municipalities

• Promote accountable, transparent, democratic local government and efficient use of resources

• Seen as an intervention to achieve Operation Clean Audit 2014

• LG characterized by weak oversight. Critical question: Is MPAC different from other interventions since 2000?

NT TREASURY GUIDELINES

• Ss129(4) read 168(1) MFMA empowers Minister to issue guidelines on how councils consider annual reports and the composition of public accounts / oversight committees

• Guidelines are non-binding – Section 129(5)

• No legal obligation to establish MPACS

• No legal obligation to appoint chairperson from opposition party

• Not practical to have councillors exclusively dedicated to MPAC duties

Accountability / Oversight Chain

MUNICIPAL COUNCIL

MM&

S56 MANAGERS

VOTERSEXEC

MAYOR& MMC’S

Adapted from Murray & Nijzink, 2002

MPAC

CHALLENGES

• The accountability relationship is made possible because of the clear separation between the executive and the legislative authority – a core feature of democratic systems of government (Hedger & Blick, 2008:2)

• No separation at local level but the accountability / oversight relationship critical (Structural). Relationship between Speaker and Mayor

• How do we ensure that we develop from opposition politics to institutional (Council) oversight?

• How does the administration assist Council to effectively exercise oversight over themselves?

• Resources

WHAT DID THE MUNICIPALITIES SAY

MUNICIPAL

CONCERNSX A Guideline is not

Obligatory

X We are doing what must

be done

X Increase Costs

X Duplication

X What about small Councils

X Admin Capacity

X Capacity of Councillors

PROVINCIAL

RESPONSE Oversight is of critical

importance

Change name of Oversight Com/

Amend TOR

If more meetings costs

insignificant

We continue doing what we

doing

Each council decides

If have IA it should be their job

All role-players to assist

Status at 7 August 2012

• 32 / 82% municipalities established MPACS

• 100 % in North-West, Limpopo, Eastern Cape, Gauteng, KZN & Mpumalanga

• Free State no MPACS but committed to establish all by end September 2012

• Western Cape 12/30 MPACS as at end September 2012

Responsibilities of MPAC

Financial Other Criticcal Oversight Roles

Unforeseen and unavoidable expenditure

Appointments & Disciplinary Matters

Unauthorised, irregular or fruitless expenditure

Performance Reports

Recovery and writing off of expenditure

Human Resource

Monthly budget statements Use of Resources / Value for Money

Implementation Budget / SDBIP

Annual Report / Oversight report

Audit Committee AG Findings

DELEGATIONS

• Consider and make recommendations on all Financial, Performance, Audit, information and Reports

• Request any information / documents from the Executive and Administration. Chairpersons requests the information from the Municipal Manager

• Request any member of the executive and administration to appear before the committee

• Authority to obtain expert legal / technical advice

• Separate budget to the Committee

REPORTING

• S56(1) Structures Act Abused

• Mayors not entitled to all reports (Oversight, Disciplinary Committee)

Interpretation of s56(1) should be based on whether powers are delegatable or not.

S56(1) Structures ActAn Executive Mayor is entitled to receive reports from committees of the municipal council and to forward these reports together with a recommendation to the council when the matter cannot be disposed of by the executive mayor in terms of the executive mayor’s delegated powers.

CONCLUSIONS

• MPAC has the potential to improve oversight but even a bigger potential to be a failure

• SALGA Training and APAC Training very good but not nearly enough. Practical oversight experience and handholding required.

• Municipal Managers, Provincial Governments, SALGA, Auditor- General, National & Provincial Members, all have critical roles to play in assisting MPACS

Thank you