PRESENTATION OUTLINE

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PRESENTATION OUTLINE1. PURPOSE2. BACKGROUND AND CONTEXT3. INTERVENTIONS SINCE SCOF’S VISIT OF 24 – 27 JANUARY 2012 3.1 Filling of Municipal Managers and CFOs Posts 3.2 Development and Implementation of Municipal Budgets as well as Spending and Performance on Conditional Grants by Municipalities 3.3 Compliance with Municipal Finance Management Act 3.4 Relations/Collaboration between Municipalities and Sector Departments (including Parastatals) 3.5 Service Delivery and Capacity Constraints 3.6 Alignment of Municipal Integrated Development Plans with Provincial Growth and Development Strategy 3.7 Response to SCOF Recommendations 4. CHALLENGES FACING NORTHERN CAPE MUNICIPALITIES5. CONCLUSION

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1. PURPOSE

• To brief the NCOP’s Select Committee on Finance on progress made regarding 14 Municipalities that were visited on 24 – 27 January 2012

• Focus of presentation to be on: - Development and Implementation of Municipal Budgets - Compliance with Municipal Finance Management Act - Spending and Performance on Conditional Grants - Relations/Collaborations between Municipalities and National and Provincial Sector Departments; - Service Delivery and Capacity Constraints and - Response to SCOF recommendations.

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2.1 Categorisation of Northern Cape Municipalities: 5 District Municipalities and 27 Local Municipalities:

Category B1 Local Municipalities with large budgets and secondary cities

Sol Plaatje (Kimberley)

Category B2 Local Municipalities with a large town as a core

//Khara Hais (Upington)

Category B3 Local Municipalities with small towns, with relatively small population and significant proportion of urban population but with no large town as a core

24 other Local Municipalities i.e. Magareng, Phokwane, Dikgatlong, !Kheis, Kai! Garib, Kgatelopele, Tsantsabane, Mier, Ga-Segonyana, Gamagara, Emthanjeni, Kareeberg, Umsobomvu, Siyancuma, Thembelihle, Siyathemba, Ubuntu, Renosterberg, Nama Khoi, Richtersveld, Kamiesberg, Karoo Hoogland, Hantam and Khai-Ma

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2. BACKGROUND AND CONTEXT

Category B4 Local Municipalities which are mainly rural

with communal tenure and with, at most, one

or two small towns in their area

Joe Morolong

Category C1 District Municipalities which are not water

service authorities

*Francis Baard *Pixley ka Seme

*Namakwa *John Taolo Gaetsewe

*Siyanda

2.2 Municipalities Identified for Targeted Support

13 Local Municipalities are receiving targeted support from Northern Cape

Department of COGHSTA and National DCOG through Local Government

Turn-Around Strategy (LGTAS), and 7 of these same municipalities are also

receiving support from the Municipal Infrastructure Support Agency

(MISA):

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Siyathemba Tsantsabane Magareng (MISA)

Gamagara (MISA)

Richtersveld !Kheis Renosterberg (MISA)

Ga-Segonyana (MISA)

Kamiesberg Kgatelopele Khai-Ma (MISA)

Joe Morolong (MISA)

Mier (MISA)

John Taolo Gaetsewe District Municipality identified by National Cabinet as one of the 23 Rural Districts requiring support

Six (6) Northern Cape Municipalities benefitting from the Municipal Finance Improvement Programme: Finance experts deployed by National Treasury to the following Municipalities:

•Umsobomvu•Renosterberg•Siyancuma•Kamiesberg•Kgatelopele•Thembelihle

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2.3 Municipalities Visited By SCOF

The following 14 municipalities were visited on 24 – 27 January 2012:

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Karoo Hoogland LM

Renosterberg LM

Sol Plaatje LM Dikgatlong LM

Kgatelopele LM

Siyancuma LM Siyathemba LM Phokwane LM

Emthanjeni LM

Thembelihle LM

Mier LM Siyanda DM

Richtersveld LM

Kamiesberg LM

3. INTERVENTIONS BY PROVINCIAL GOVERNMENT SINCE SCOF VISIT ON 24 – 27 JANUARY 2012

3.1 Status of Municipal Managers and CFOs Posts: •Karoo Hoogland LM (MM : Filled ; CFO : Filled)•Renosterberg LM (MM : Vacant ; CFO : Vacant)•Sol Plaatje LM (MM : Filled ; CFO : Filled)•Dikgatlong LM (MM : Filled ; CFO : Vacant)•Kgatelopele LM (MM : Vacant ; CFO : Vacant)•Siyancuma LM (MM : Vacant ; CFO : Filled)•Siyathemba LM (MM : Vacant ; CFO : Filled) •Phokwane LM (MM : Filled ; CFO : Filled)•Emthanjeni LM (MM : Vacant ; CFO : Vacant)•Thembelihle LM (MM : Filled ; CFO : Filled)•Mier LM (MM : Vacant ; CFO Vacant)•Siyanda DM (MM : Filled ; CFO : Filled)•Richtersveld LM (MM : Vacant ; CFO : Filled)•Kamiesberg LM (MM : Vacant ; CFO : Filled) 8

COGHSTA, Provincial Treasury and SALGA Northern Cape are part of short-listings and interview panels:

• Renosterberg LM (MM interviews were held on 13/11/2012 and the CFO post will be advertised after MM appointment)

• Dikgatlong LM (CFO post to be re-advertised soon)• Kgatelopele LM (MM and CFO posts short-listings and interviews soon, awaiting

municipal council to confirm dates)• Siyancuma LM (MM interviews on 13/11/2012 and CFO post will be advertised

after MM appointment)• Siyathemba LM (MM interviews on 13/11/2012 and CFO post will be advertised

after MM appointment)• Richtersveld LM (MM post to be filled on 1/12/2012)• Kamiesberg LM (MM post to be filled on 1/12/2012)• Mier LM (Interviews for MM took place, Council to make an appointment soon)• Emthanjeni LM (MM interviews scheduled for 13/11/2012 and the CFO post will

be advertised after MM appointment)

All MM posts to be filled by 31 December 2012 & CFO posts by end of February 20139

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3.2 Development and Implementation of Municipal BudgetsMunicipality Date Tabled Complied

Karoo Hoogland 29 March 2012 On time

Renosterberg 2 April 2012 Late

Sol Plaatje 27 March 2012 On time

Dikgatlong 10 April 2012 Late

Kgatelopele 30 March 2012 On time

Siyancuma 29 March 2012 On time

Siyathemba 20 April 2012 Late

Phokwane 29 March 2012 On time

Emthanjeni 29 March 2012 On time

Thembelihle 13 April 2012 Late

Mier 30 March 2012 On time

Siyanda 30 March 2012 On time

Richtersveld 30 March 2012 On time

Kamiesberg 29 May 2012 Very late

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Funding of Municipal Budgets

Municipality Funded

Karoo Hoogland No

Renosterberg No

Sol Plaatje Yes

Dikgatlong No

Kgatelopele No

Siyancuma No

Siyathemba No

Phokwane No

Emthanjeni Yes

Thembelihle No

Mier No

Siyanda Yes

Ricthersveld Yes

Kamiesberg No

Budget Actual Performance & Spending and Performance of Conditional Grants

1. Karoo Hoogland Local Municipality1.1. Budget Performance as at 30 September 2012

Budget Actual Performance % Performance

Operating Revenue 46 131 15 157 33%

Operating Expenditure 61 442 7 487 12%

Capital revenue 15 381 4 333 28%

Capital Expenditure 15 381 4 691 30%1.2 Conditional Grant Spending

Grant Budget Actual Performance % Performance

FMG 1 500 278 18,5%

MSIG 800 - 0%

INEP 4 00 2 208 55,2%

MIG 11 381 140 1,2%

TOTAL 17 681 2 626 14,9%

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2. Renosterberg Local Municipality2.1. Budget Performance as at 30 September 2012


Operating Revenue 32 302 13 688 42%

Operating Expenditure 49 538 5 579 11%

Capital revenue 9 911 - 0%

Capital Expenditure 9 911 808 8,2%

2.2 Conditional Grant Spending


FMG 1 500 - 0%

MSIG 800 35 4,4%

INEP 1 000 - 0%

MIG 9 911 - 0%

TOTAL 13 211 35 0,26%

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3. Sol Plaatje Local Municipality3.1. Budget Performance as at 30 September 2012


Operating Revenue 1 386 704 481 556 34,7%

Operating Expenditure 1 371 847 385 965 28,1%

Capital revenue 285 010 19 639 6,9%

Capital Expenditure 285 010 19 639 6,9%



FMG 1 500 443 29,5%

NDP 2 000 - 0%

MSIG 800 255 31,9%

EPWP Integrated Grant 7659 1 850 24,2%

INEP 28 000 1 792 6,4%

EDSM 6 000 - 0%

MIG 55 028 5 549 10,1%

TOTAL 100 987 9 889 9,8%

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4. Dikgatlong Local Municipality4.1. Budget Performance as at 30 September 2012


Operating Revenue 112 665 33 116 29,4%

Operating Expenditure 81 381 26 026 32,0%





FMG 1 500 647 43,1%

MSIG 800 297 37,1%

INEP 2 000 - 0%

MIG 25 617 4 051 15,8%

TOTAL 29 917 4 995 16,7%

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5. Kgatelopele Local Municipality5.1. Budget Performance as at 30 September 2012




Capital revenue 10 003 951 9,5%




FMG 1 500 518 34,5%

MSIG 800 84 10,5%

EPWP 1 000 83 8,3%

MIG 9 373 679 7,2%

TOTAL 12 673 1 364 10,8%

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6. Siyancuma Local Municipality6.1. Budget Performance as at 30 September 2012


Operating Revenue 66 40 695 6154,1%



Capital Expenditure 27 199 - 0%



FMG 1 500 196 13,1%

MSIG 800 54 6,7%

INEP 600 - 0%

MIG 20 513 - 0%

TOTAL 23 413 250 1,1%

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7. Siyathemba Local Municipality7.1. Budget Performance as at 30 September 2012


Operating Revenue 69 256 - 0%

Operating Expenditure 83 276 - 0%


Capital Expenditure 15 378 - 0%



FMG 1 500 - 0%

MSIG 800 404 50,5%

INEP 1 200 - 0%

MIG 12 429 2 578 20,7%

TOTAL 15 929 2 982 18,7%

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8. Phokwane Local Municipality8.1. Budget Performance as at 30 September 2012








FMG 1 500 223 14,9%

MSIG 800 102 12,8%

EPWP 1 000 - 0%

INEP 1 200 114 9,5%

WSO & TS 16 357 - 0%

MIG 26 366 5 003 19,0%

TOTAL 47 223 5 442 11,5%

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9. Emthanjeni Local Municipality9.1. Budget Performance as at 30 September 2012








FMG 1 500 190 12,7%

MSIG 800 236 29,5%

EPWP 1 000 - 0%

MIG 16 141 1 911 11,8%

TOTAL 19 441 2 337 12,0%

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10. Thembilihle Local Municipality10.1. Budget Performance as at 30 September 2012








FMG 1 500 364 24,3%

MSIG 800 1 0,2%

EPWP 1 000 - 0%

INEP 3 000 - 0%

MIG 13 569 3 951 29,1%

TOTAL 19 869 4 316 21,7%

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11. Mier Local Municipality11.1. Budget Performance as at 30 September 2012








FMG 1 500 78 5,2%

MSIG 800 103 12,8%

MIG 11 384 1 825 16,0%

TOTAL 13 684 2 006 14,7%

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12. Siyanda District Municipality12.1. Budget Performance as at 30 September 2012








FMG 1 250 106 8,5%

MSIG 1 000 - 0%

EPWP 1 000 - 0%

TOTAL 3 250 106 3,3%

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13. Richtersveld Local Municipality13.1. Budget Performance as at 30 September 2012




Capital revenue 9 513 20 0,2%

Capital Expenditure 9 513 20 0,2%



FMG 1 500 63 4,2%

MSIG 800 52 6,5%

INEP 1 200 - 0%

MIG 8 628 778 9,0%

TOTAL 12 128 893 7,4%

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14. Kamiesberg Local Municipality14.1. Budget Performance as at 30 September 2012








FMG 1 500 326 21,7%

MSIG 800 - 0%

INEP 1 500 500 33,3%

MIG 11 686 1 755 15,0%

TOTAL 15 486 2 581 16,7%

3.3 Compliance with MFMA Summary Municipal Total Average level of Compliance: In terms of 30 MFMA monitoring indicators:1.Emthanjeni LM : Improvement 2.Siyanda DM : Regression3.Richtersveld LM : Improvement4.Karoo Hoogland LM : Regression5.Siyathemba LM : Improvement6.Kgatelopele LM : Regression7.Phokwane LM : Improvement8.Renosterberg : Regression9.Dikgatlong : Improvement10.Siyancuma LM : Regression11.Mier LM : Regression12.Thembelihle LM : Regression13.Kamiesberg LM: Regression

Copies of Comprehensive report to be distributed to members during the presentation

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Provincial Government Intervention: Compliance with MFMA

• COGHSTA appointed a consultant to assist municipalities with GRAP training: To ensure full compliance with GRAP when finalising 2011/12 AFS

• Provincial Government, through COGHSTA and Provincial Treasury appointed Consultants for Mier, Kamiesberg and Renosterberg to prepare their 2011/12 annual financial statements as they are struggling financially

• COGHSTA Municipal Finance unit together with Provincial Treasury visited municipalities to assess progress on the implementation of their audit action plans

• Due to provincial government interventions, 8 out of the 14 municipalities submitted their 2011/12 AFS timeously: Sol Plaatje, Siyacuma, Siyathemba, Phokwane, Emthanjeni, Thembelihle, Siyanda and Richtersveld. 4 municipalities’ AFS are still outstanding: Karoo Hoogland, Renosterberg, Kamiesberg and Mier. 2 municipalities submitted late: Dikgatlong (30 August 2012) and Kgatelopele (02 November 2012). 27

• Most municipalities were qualified on non-compliance with Supply Chain Management processes;

• During the monitoring of Audit Action Plans, municipalities were advised on how to deal with SCM transactions to avoid irregular and unauthorised expenditures

• Provincial Treasury: Supply Chain Management is providing hands on support to municipalities

• COGHSTA and Provincial Treasury in the process of finalising Provincial Debt Collection Committee to assist municipalities to collect debt owed to them by government departments:

e.g.: Targeted support was provided to Sol Plaatje Municipality who then successfully collected R54m outstanding monies from government departments

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Functionality of Audit Committees and Internal Audits, and MPACs establishments

No Municipality AUDIT COMMITTEE FUNCTIONAL INTERNAL AUDIT

FUNCTIONAL MPAC

1 Karoo Hoogland Yes No Yes Yes Yes2 Renosterberg Yes No Yes No Yes3 Sol Plaatje Yes Yes Yes Yes Yes4 Dikgatlong No N/A No N/A Yes5 Kgatelopele Yes No Yes No Yes6 Siyancuma Yes No Yes No Yes7 Siyathemba Yes No Yes No Yes8 Phokwane Yes No Yes No Yes9 Emthanjeni Yes No Yes No Yes

10 Thembelihle Yes No Yes No Yes11 Mier Yes No Yes No Yes12 Siyanda district Yes Yes Yes Yes Yes13 Richtersveld No N/A No N/A Yes14 Kamiesberg No N/A No N/A Yes29

•MPACs have been in place for a short period, therefore their functionality will be assessed on the 2011/12 audit outcomes for their effectiveness

•The Association of Public Accounts Committees (APAC), together with its strategic partners: Auditor General South Africa (AGSA), National Treasury (NT), Department of Cooperative Governance (DCoG) and SALGA with the Provincial Legislature, conducted training for all MPAC members on 16 – 18 April 2012 and 24 - 26 April 2012 respectively

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3.4 Relations/Collaboration between Municipalities and National and Provincial Sector Departments (including Parastatals)

• District Inter-Governmental Forum (Quarterly Meetings): Chaired by the Executive Mayors of District Municipalities: Mayors of Local Municipalities, Municipal Managers of those Local Municipalities, Regional Managers of Provincial Sector Departments as well as representatives from National Sector Departments attend

• MUN-MEC Meetings (Quarterly Meetings): Convened and chaired by MEC for Cooperative Governance, Human Settlements and Traditional Affairs: Attended by Executive Mayors, Mayors, Chairperson of SALGA NC, Municipal Managers, CFOs of Municipalities, DG in the Office of the Premier, Head of Provincial Treasury, Representatives from National and Provincial Sector Departments and A-G’s Office

• Premier’s Inter-Governmental Forum (Quarterly Meetings): Chaired by Premier and MEC for COGHSTA as co-Chairperson, All MECs, DG and Provincial Heads of Departments, Chairperson of SALGA, Municipal Managers, CEOs of Parastatals, Regional Heads of National Sector Departments in the Province 31

3.5 Service Delivery and capacity Constraints of Municipalities

MUNICIPALITY HH with access to basic water

HH with access to basic sanitation

HH with access to basic electricity

HH with access to basic refuse removal

HH with access to Free Basic Water

HH with access to Free Basic sanitation

Karoo Hoogland

2982 2982 2098 4610 2982 900

Sol Plaatje 52122 47721 44396 8093 9865 9865Emthanjeni 9487 8621 7854 2396 3672 1231Dikgatlong 9173 8555 7149 8250 6484 6484Renosterberg 2350 1709 2179 7148 808 808Thembelihle 2641 2641 3371 986 1200 1200Siyathemba 2959 2804 3670 7773 2114 2114Siyancuma 8604 7300 6263 19154 3392 3392Kgatelopele 5251 4838 3482 4069 2606 2606Phokwane 19152 15180 13143 4989 2546 2546Mier 1388 735 970 2871 552 552Richtersveld 3893 3747 2449 5106 809 809Kamiesberg 3730 3649 2457 3092 962 962Siyanda

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Service Delivery Capacity Constraints:

• Lack of capacity in municipalities poses serious challenges in project initiatives, planning and implementation which ultimately results in poor service delivery and protests

• Most of bulk infrastructure operate beyond capacities and the RBIG Funding is not enough to fund all demands

• Reduction in MIG allocation will impact negatively on the upgrading of Bulk Infrastructure

• Calculations of allocations based on head count rather than the demand on the ground: The furthest the demand is in terms of distance, the higher the cost of service therefore the head count formula base is not doing justice to Northern Cape Province as a whole due to the vastness of the area and poverty

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Dealing with Capacity Constraints: Municipal Infrastructure Support Agency

• 7 municipalities in the Province identified for MISA support: Renosterberg and Mier part of MISA

• DCOG deployed 3 Engineers and 1 Planner to assist municipalities to deal with Planning and Technical challenges

• There is also Senior Manager from DCOG as part of National’s Technical Support Unit deployed to the Province

• COGHSTA in partnership with MISA has scheduled site visits intervention that will commence from the week of 12 November 2012 to various municipalities in the province preferably the 14 identified municipalities

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3.6 Alignment of Municipal IDPs with Provincial Growth and Development Strategy

• Draft IDPs were assessed at the Annual Provincial IDP Analysis and Engagement on 28 – 31 May 2012 by COGHSTA and sector departments

• Municipalities submitted their respective adopted 2012/13 draft IDPs to COGHSTA, except Kamiesberg and Renosterberg

• The final IDP of Karoo Hoogland could not be adopted due to political and administrative instability

• Municipal IDPs, Budgets and SDBIPs have been integrated• Implementation of the IDPs went hand-in-hand with ‘hands on

support and Rapid Response’ support processes and leveraging of stakeholder support and reporting and monitoring

Comprehensive report to be handed to members during the

presentation 35

3.7 Response to Recommendations of the Select Committee on Finance

1. Provincial Treasury has strengthened its support programme to municipalities by: regular visit to municipalities, assistance on request from municipalities in compliance with Section 34 of the MFMA, discuss relevant topics at Provincial CFO Forum, Workshops and Circulars to assist municipalities to comply;

2. Mier Local Municipality: The province appointed Altimax as service provider to assist municipality with AFS and compilation of GRAP compliant asset register with Provincial Treasury monitoring the process. Municipality visited for benchmark of their budget, as had a balanced budget and training on revised PPPFA provided

3. Kamiesberg Local Municipality: The province appointed Altimax as service provider to assist municipality with AFS and compilation of GRAP compliant asset register with Provincial Treasury monitoring the process: PT visited municipality and held open discussion with the MM, CFO and Head: SCM. Challenges on Audit Reports were discussed. Because of these challenges, an intervention plan was compiled. COGHSTA seconded an acting Municipal Manager to assist the municipality and training provided on capturing of statistics (R100 000)

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Response to Recommendations of the Select Committee on Finance

4. Emthanjeni Local Municipality: PT visited municipality and held open discussion with the MM, CFO and Head: SCM. Challenges on Audit Reports were discussed. Because of these challenges, an intervention plan was compiled. PT provided formal training and PT then provided mentorship assistance, physical assistance with compiling a database for prospective suppliers; invitation of quotations; compiling bid documents, specification, advertisement of bids; bid closing; evaluation of bids; writing of submissions to the committees

5. COGHSTA and Provincial Treasury coordinate assistance to municipalities and all other provincial sector departments are part of Local Government Turn-Around Strategy

6. The contract between COGHSTA Human Settlements unit and municipalities is clear: Municipalities must review the contract of contractors and ensure that all houses built conform with national norms and standards. Municipalities are not reporting to the department and no action was taken against the municipalities for non-compliance.

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7. Assistance provided to Municipalities

Karoo Hoogland Local Municipality

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* PT visited municipality for mid-year budget and performance assessment• Undertook municipal benchmarking exercise on their 2012/13 budget

Renosterberg Local Municipality• COGHSTA seconded Municipal Manager and Provincial Treasury CFO• Appointed consultants to assist with compilation of AFS for 2010/11 and

2011/12• Undertook municipal benchmarking exercise

Dikgatlong Local Municipality• Provided assistance with pre-evaluation of bids• Training on revised PPPFA regulations and CIDB• Visited municipality for mid-year budget and performance assessment

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Kgatelopele Local Municipality

• Assisted with pre-evaluation and evaluation of bids

• PT attended Bid Evaluation meeting

• Assisted with compilation of tenders for Security, Land fill and Tracker system

• Assisted CFO with participation process in RT contracts

• Assisted municipality with converting draft budget to regulated format

Siyancuma Local Municipality

• PT provided training on overview on SCM and Bid Committees

• PT provided physical assistance with compiling a database for prospective suppliers; invitation of quotations; compiling bid documents, specification, advertisement of bids; bid closing; evaluation of bids; writing of submissions to the committees

• PT visited municipality and held open discussion with the MM, CFO and Head: SCM. Challenges on Audit Reports were discussed. Because of these challenges, an intervention plan was compiled.

• Assisted municipality with compiling Final Budget Documents according to the Municipal Budget and Reporting Regulations, Schedule A format

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Siyathemba Local Municipality

• Undertook municipal benchmarking exercise

Phokwane Local Municipality• Training provided on capturing statistics (R100 000)• Provided assistance with pre-evaluation of the banking tender• Provided support on the revised PPPFA regulations and • Provided CIDB training• Undertook municipal benchmarking exercise• Mediate on municipal debt to Sedibeng Water Board

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Emthanjeni Local Municipality• PT visited municipality and held open discussion with the MM, CFO and Head: SCM. Challenges on Audit Reports were discussed. Because of these challenges, an intervention plan was compiled.• PT provided formal training • PT then provided mentorship assistance, physical assistance with compiling a database for prospective suppliers; invitation of quotations; compiling bid documents, specification, advertisement of bids; bid closing; evaluation of bids; writing of submissions to the committees

Thembelihle Local Municipality

• PT visited municipality and held open discussion with the MM, CFO and Head: SCM. Challenges on Audit Reports were discussed. Because of these challenges, an intervention plan was compiled.•PT then provided mentorship assistance, physical assistance with compiling a database for prospective suppliers; invitation of quotations; compiling bid documents, specification, advertisement of bids; bid closing; evaluation of bids; writing of submissions to the committees •No benchmarking exercise could be undertaken because municipality’s 2012/13 budget was not available

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•Mier Local Municipality•The province appointed Altimax as service provider to assist municipality with AFS and compilation of GRAP compliant asset register with Provincial Treasury monitoring the process•Municipality visited for benchmark of their budget, as had a balanced budget• Training on revised PPPFA provided

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Siyanda District Municipality

• PT conducted mentorship and assisted the municipality with evaluation of bids

• Training provided on the revised PPPFA regulations

Richtersveld Local Municipality

• Just normal oversight visits

Kamiesberg Local Municipality

• The province appointed Altimax as service provider to assist municipality with AFS and compilation of GRAP compliant asset register with Provincial Treasury monitoring the process

• PT visited municipality and held open discussion with the MM, CFO and Head: SCM. Challenges on Audit Reports were discussed. Because of these challenges, an intervention plan was compiled.

• COGHSTA seconded an acting Municipal Manager to assist the municipality

• Training provided on capturing of statistics (R100 000)

Sol Plaatje Municipality

• Not a delegated municipality, reporting directly to National Treasury

8. Since 1999 the Provincial Government never invoked section 139 interventions. The approach adopted by the province thereafter was to provide support to the municipalities in their respective challenges they are encountering

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4. CHALLENGES FACING NORTHERN CAPE MUNICIPALITIES

• Northern Cape municipalities are struggling to recruit suitable senior management personnel to work in municipal spaces due to spatial realities of the Province;

• Municipalities consistently experience brain drain because they are not attractive as areas to stay and work, they are not able to offer competitive remuneration to skilled personnel;

• The equitable share allocated local government is inadequate to deal with the challenges faced by municipalities;

• COGHSTA is constantly deploying its own personnel to fill vacancies as those of Municipal Managers in several municipalities; 45

CHALLENGES:

• The department has limited budget to sustain interventions implemented in municipalities

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