presentation local government: municipal systems amendment...

1Your partner in service delivery and development

PRESENTATION

LOCAL GOVERNMENT:MUNICIPAL SYSTEMS AMENDMENT BILL,

2010

JOINT MEETING OF THE PORTFOLIO AND SELECT COMMITTEES ON COOPERATIVE

GOVERNANCE AND TRADITIONAL AFFIARS

18 August 2010


Legal ContextChallengesPolicy ResponseObjectivesProposed AmendmentsEnd

1. OVERVIEW

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2. LEGAL CONTEXT

□

The Municipal Systems Act (MSA) –

o provides a legal framework for local public administration and HR

o empowers municipalities to adopt appropriate systems and procedures to ensure fair, efficient, effective and transparent personnel administration

o empowers the Minister to regulate the setting of uniform standards for municipal systems and procedures

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3. CHALLENGES□

The absence of uniform standards has had some unintended consequences. This, inter alia -

o induced municipalities to adopt disparate HR systems and practices (including remuneration and conditions of service)

o encouraged municipalities to appoint inadequately qualified persons in leadership positions (3 years

average experience/ lack of competencies)

o impacts negatively on the ability of municipalities to build the skills base/capacity to perform their

functions


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3. CHALLENGES (Cont.)

o blurred the lines between political/ administrative career path with negative consequences on the effectiveness of municipalitiesomakes it difficult to entrench a culture of increased performance and accountability through enforcement of EC and PA (79% mm and 76% s56 mgrs- March 2010)o creates a laizez fair situation where dismissed employees (especially for serious cases) freely enter and exit municipal employment o makes it cumbersome for the MCoGTA and other

statutory bodies to monitor and support municipalities


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3. CHALLENGES (Cont.)□

The implementation of the MPR, 2006 attracted legal disputes from some municipalities with major financial consequences

□

A study on the SLGSA conducted in 2009, also revealed that –

o there are serious leadership and governance challenges in municipalities

o a number of municipalities are poorly governed or dysfunctional due to inability to recruit and retain

skilled personnel (grading and remuneration systems)o accountable local government and the rule of law

have collapsed in some municipalities due to corruption, patronage, etc).Your partner in service delivery and development

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4. POLICY RESPONSE □

Cabinet approved the LGTAS in December 2009 unveiling several proposals to turnaround LG, including the review of legislation that impacts on service delivery

□

The MSA was identified as one such legislation - impeding municipalities from building the necessary capacity to perform their constitutional functions

□

The Bill enables the Minister to set uniform standards for municipal staff systems and procedures and is aimed at circumventing the shortcomings highlighted above- by plugging the legislative gaps


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5. OBJECTIVES The setting of uniform staff systems and procedures for municipalities (snr managers & staff below) will –

□

create a career local public administration that allows for increased mobility of staff across the sector (uniform systems and procedures)

□

ensure consistency between the systems and procedures adopted by municipalities and standards set by the MCoGTA

□

assist municipalities to build the skills base necessary to exercise their powers and perform their functions by appointing suitably qualified people


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5. OBJECTIVES

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set the scene for professionalisation of local public administration and HR

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entrench a culture of improved performance and service delivery by tightening the timeframes for concluding ECs and PAs

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enables the Minister and other statutory bodies to monitor and support municipalities


6. PROPOSED AMENDMENTS


Section 1(a):

Definition of “municipal manager”

Definition of” political office”

Proposed amendment

□

Section 1 of the Municipal Systems Act (principal Act) is amended to insert and amend the following definitions:

o “municipal manager” means a person appointed in terms of s54A;

o “political office” irt political party or structure thereof means –the position of chairperson, deputy chairperson, secretary, deputy secretary or treasurer of the party nationally or in any province, region or other area in which the party operate; or



Section 1(b):

Definition of” political office”

Proposed amendment

any position in the party equivalent to a position referred to above – irrespective of the title designated to that position



Section 2:

Insertion of section 54A in Act 32 of 2000:

Appointment of municipal managers and acting municipal managers

Proposed amendment

□

The insertion of section 54A in the principal Act to provide –o for the appointment of mms or acting municipal

managerofor procedures and competency criteria for such appointments (skills, expertise, competencies and qualifications) for mms or acting mmsothat a contract of employment between the municipality and a person appointed as an mm or acting mm is void ab initio if –

the person appointed does not meet prescribed skill/ competencies, orthe appointment otherwise made in contravention of this Act



Section 2:



Proposed amendment

o the consequences of appointments or contracts made or concluded in contravention of this section

o the advertisement of vacant mm posts nationally- on emphasis on selection on merit

o the secondment of suitably qualified persons by

the MEC if a municipality struggles to attract suitably qualified candidates within a stipulated period

Minister if the MEC fails to second a suitably qualified person within the stipulated period



Section 2:



Proposed amendment

o an obligation on municipalities to report recruitment and selection outcomes to the MEC/ Minister

o the MEC to enforce compliance with appointment requirements as set out in this Bill (i.e. IGR dispute resolution mechanisms or

declaratory order)o intervention by the Minister if the MEC fails

to take appropriate steps within stipulated periodo a municipality to apply for a waiver of the

appointment requirements under special circumstances and on good cause shown



Proposed amendmentSection 3:

Amendment of s56:Appointment of managers directly accountable to municipal managers

□

Amendment of section 56 of the principal Act to –

o make provision for the substitution of ss(1) and (2) of the Act with similar/corresponding requirements for the appointment of municipal managers (competency criteria, conditions for acting appointments, reporting requirements)




Insertion of s56A:

Limitation of political rights of municipal managers and managers directly accountable to municipal managers

□

The Bill inserts a new s56A in the principal Act to bar mms and managers directly accountable

to mms from holding political office in a political party, whether in a permanent, temporary or acting capacity

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This limitation of political rights –

o does not take away the constitutional right of managers to join political parties of choice

o shall not apply retrospectively



Proposed amendmentSection 5: Amendment of s57:

Employment contracts/ performance agreements of municipal managers and managers directly accountable to municipal managers

□

Section 57 of the Act is amended to –

odetermine timeframes within which PAs of mms and managers directly accountable to mms must be concluded (i.e. 60/30)

omake provision for nullification of the contract of employment if a manager does not sign the PA within stipulated timeframes

omake standards set by the MCoGTA to form part and parcel of the PA




Amendment of s57:

Employment contracts of municipal managers and managers directly accountable to municipal managers

o require that the EC be signed by both parties before the mm/ manager directly accountable to the mm

commences service

o require the EC and PA of mms and managers directly accountable to municipal managers to be consistent

with the Act and any regulations made by the Minister

o deletion of s57(7) of the principal Act giving discretionary powers to municipalities to extend fixed term contracts of mms to managers directly accountable to mms

Note: The repeal of s57(7) does not affect the validity of existing employment contracts of s56

managers




Insertion of section 57A:

Employment of dismissed municipal employees by other municipalities

□

The Bill inserts a new section 57A in the principal Act to –

o regulate the employment of municipal employees who have been dismissed o provide that a municipality may only re-appoint an

employee who has been dismissed for misconduct after the expiry of a prescribed period

o categorise cooling-off periods for different types of misconduct

e.g Fraud/ offering or receipt of undue gratification – 5 yrs

Sexual harassment/ discrimination – 4 yrsCriminal conviction – 3 yrs




Regulation of duties, remuneration, benefits and other conditions of employment of municipal managers and managers directly accountable to municipal managers

□

The Bill inserts a new section 59A in the principal Act to provide for the Minister to –

o make regulations relating to the remuneration, benefits and conditions of employment of mms and managers directly accountable to mms

Rationale: improve staff mobility and stabilise municipal administrations by rationalising the municipal grading system, remuneration and conditions of service




Amendment of s66:

Functions and powers of the municipal manager irt staff establishment

□

Section 66 of the principal Act is amended to –

o provide for approval of staff establishment of a municipality by the respective municipal councils

o prohibit–bloating of municipal administrations in areas other

than those focusing on the core business of a municipality

the appointment of persons in posts that are not approved by council nor budgeted for

o enforce compliance by introducing a liability clause for anyone derogating from the provisions of the Act




Amendment of s67:

Human resource development

□

Section 67 of the principal Act is amended to –o require that all systems and procedures adopted by

a municipalities ito of s67(1) must be consistent with uniform standards determined by the Minister (e.g . recruitment and selection, appointment, promotion, transfer, etc.)

o ensure that systems and procedures adopted ito of s67 of the Act apply to mms and managers directly accountable to mms

□

This amendment will minimise protracted IGR/labour disputes and litigation cases



Proposed amendmentProblem Area 10:

Mandating processes for organised local government

□

The Bill inserts a new section 71B in the Act to enable the Minister to –

o regulate mandating processes for organised local government

o delegate the powers to deal with human resource management matters to organised local government




Amendment of s72:

Powers of the Minister to regulate uniform systems and procedures for municipal staff

□

Section 72 of the principal Act is amended to –o harmonise the powers assigned to the Minister to

those assigned to municipal councils (s67)o extend the Minister’s powers to make regulations

relating to the following HR matters –prohibit municipal staff from performing other

remunerative work outside the municipality prior approval by council

make it compulsory for all municipal staff to contribute to pension/ retirement fund

accreditation of pension funds/ medical aid schemesrationalise contributions towards medical aid and pension

funds




Amendment of s106:

Non performance and maladministration

□

Section 106 of the principal Act is amended to enable the Minister –

o to conduct an investigation into non-performance and maladministration in a municipality, if the MEC for local government fails to conduct such an investigation within a specified period (90 days)




Amendment of Schedule 1 of the Code of Conduct for Councillors:

Liability clause

□

Schedule of the Code of Conduct for Councillors is amended to –

o provide that a councillor who knowingly votes in favour of a resolution of council/committee of council is guilty of breaching a code of conduct for councillors




Transitional arrangements

□

Any employment contract concluded before the commencement of this Act continues until terminated or lapsed

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THANK YOU


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