THE STATE OF SALGA - Municipal Institute of Learning Lekgotla 2020/Day 2.1,Ses… · THE STATE OF SALGA EMT Lekgotla 04 February 2020. ... • Part 4 –SALGA Strategic Plan: Planning,

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THE STATE OF

SALGA

EMT Lekgotla

04 February 2020

www.salga.org.za

PRESENTATION OUTLINE

• Part 1 - Background: Background to Organised Local Government, the establishment ofSALGA, it’s role, mandate, functions, legislative framework and constitutional development.

• Part 2 – SALGA’s Evolution

• Part 3 – Leadership: The role of political and administrative leadership as well asprovinces and national

• Part 4 – SALGA Strategic Plan: Planning, budgeting and Reporting: Overview of theSALGA planning, budgeting, reporting Cycle and 5 Year Strategy.

• Part 5 – Progress against Strategy: Overview of the organisational performance in linewith the SALGA Conference resolution and strategic plan.

• Part 6 – SALGA Risks and Problem Statements:

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PART 1

BACKGROUND

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National – SALGA;

Regional – Southern Africa

Regional Office (SARO)

Continental – United Cities

and Local Governments of

Africa (UCLGA); and

Global – United Cities and

Local Governments (UCLG).

Local Government is brought together at national, regional, continental and global

level under a number of banners which are, within the South African context, as

follows:-

BACKGROUND

www.salga.org.za

BACKGROUND TO ORGANISED LOCAL

GOVERNMENT / LOCAL

GOVERNMENT ASSOCIATIONS (LGAs)

• LGAs are traditionally established to enable LG in a specific country to come

together to be a single voice and participate in the IGR space on behalf of LG.

• LGAs are normally membership organizations, providing a number of services

to their members.

• In order to play the role as a representative organization, LGAs are run on a

non-party political basis.

• In many cases LGAs develop ways of representing the diverse needs of different

types of councils within their governance structures so that they can be as

inclusive as possible.

• It is also important that LGAs look to maintain a level of independence from

central government so that they can discharge their lobbying and advocacy

role effectively.

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GOVERNMENT IN RSA

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Mpumalanga: 20

Free State: 23

Northern Cape : 31

Limpopo: 27

WALL TO WALL MUNICIPALITIES (257)

Western Cape: 30

Eastern Cape: 39

KwaZulu-Natal: 54

Gauteng: 11

8 Metros 44 District Municipalities 205 Local Municipalities

North West : 22

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BACKGROUND: LEGISLATIVE FRAMEWORK

FOR ORGANISED LOCAL GOVERNMENT (OLG)

The Constitution of RSA, 1996

Provides that OLG will have a

national organisation as well as

provincial organisations to:

1. Consult with the national or a

provincial government;

2. Designate 10 representatives

to participate in the NCOP;

3. Nominate 2 persons to the

Financial and Fiscal

Commission (FFC).

Organised Local Government Act,

1997 - Provides for the:-

1. Criteria for recognition of a national

association and provincial

associations;

2. Procedure for designation of NCOP

Representatives;

3. Procedure to consult with national

and provincial government;

4. Procedure to nominate

representatives to the FFC.

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Provincial

Associations

Voluntary Members

of the LGA

Individual

Municipalities

NationalAssociation

1. All Categories of

Municipalities

2. Majority of Municipalities

in Province

Majority of Provinces

SALGA GAUTENG (GALA)

SALGA FREE STATE (FRELOGA)

SALGA KZN (KWANALOGA)

SALGA EASTERN CAPE (EC LOGA)

SALGA WESTERN CAPE (WECLOGA)

SA

LG

A N

OR

TH

WE

ST

(N

W L

OG

A)

SALGA MPUMALANGA (LGAMPU)

SALGA LIMPOPO (NProv LOGA)

SA

LG

A N

OR

TH

ER

N C

AP

E (N

CL

OG

A)



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White Paper on Local Government, 1998

SALGA is expected to play a leading role in:-

1. Effective representation of LG in legislative &

intergovernmental Executive Processes;

2. Being an employer’s organization;

3. Development of municipalities, through eg:

• Specialised services to supplement & strengthen the

capacity of municipalities;

• Research and information dissemination;

• Facilitating shared learning between municipalities;

• Human resource development; and Councillor Training

Municipal Systems Act, 2000

SALGA is given a general mandate

including:-

1. the development of common

approaches for local government,

2. finding solutions for problems that

relate to local government generally,

3. enhancing co-operation between

municipalities, and

4. generally playing a meaningful role in

intergovernmental relations.

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IGR Framework Act envisages that in respect of:

• Issues and/or forums related to national

government, OLG will be represented by the

National Body (PCC, MinMEC, etc);

• Issues and/or forums related to Provincial

government, OLG will be represented by the

provincial organisation (PCF,

MuniMEC/MayMEC);

• Issues or forums within the district realm,

municipalities will represent themselves.

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BACKGROUND TO SALGA ESTABLISHMENT

• SALGA was established in 1996 and recognised by the Minister in January

1997;

• SALGA’s official status stems from its recognition by the Minister;

• SALGA does not have statutory executive authority over its members;

• SALGA’s power over its members stems from its Constitution;

• SALGA is a Schedule 3A Public Entity (PFMA), and as such reports to the

Minister of COGTA;

• SALGA has demonstrated a political preference for a unitary structure for

organised local government, i.e. one structure that is governed through a

constitution as one unit:-

– Executive Authority - Minister of COGTA;

– Accounting Authority – National Executive Committee; and

– Accounting Officer – Chief Executive Officer.

www.salga.org.za

MEMBERSHIP

In terms of the SALGA Constitution as adopted at the National Conference, it

shall have the following categories of members:

1. Municipalities;

2. Provincial Association of organised local government; and

3. Associate members.

* Developed a Criteria for Associate members in 2008/09.

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VISION, MISSION & VALUES

Vision

To be an Association of municipalities that is at the cutting-edge of quality and sustainable services.

Mission

To be consultative, informed, mandated, credible, accountable and provide value for money to its highly

appreciated, valued and respected membership.

Values and principles

Responsive: Being quick and flexible in responding to member needs

Innovative: Exploring new ways of doing things and providing members with fresh and unconventional

services

Dynamic: Being flexible and adapting to change to service members effectively and efficiently

Excellence: Serving members with pride and excellence.

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BACKGROUND: SALGA’S MANDATE

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KEY STAKEHOLDERS

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PART 2

SALGA’s EVOLUTION

www.salga.org.za• 18

The SALGA ORGANISATIONAL EVOLUTION

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2017 - 2022

2012 - 2017

2007 - 2012

2000 - 2007

1996 - 2000

Relevance & Meaningful ImpactHigh performance & good governance

translate into meaningful impact

Well Governed High performing organisation, consistently receiving

clean audits

Consolidation

Consolidation as unitary structure that plans, operates an

reports as one.

Coordination of Democratic Local GovernmentCoordinating the voice of a fragmented local government

SALGA Established & LG Law and Policy Development

Start of journey with 9 different provincial structures, and participation

in LG policy and regulation

SALGA’s focus and mission has and remains to be about building municipalities that should be:

Caring I Accountable I Responsive I Innovative I Participatory I Capable I Resilient I Viable I

Development Oriented I Service Delivery Oriented

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PART 3

POLITICAL AND ADMINISTRATIVE

LEADERSHIP

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NATIONAL GOVERNANCE STRUCTURES

NATIONAL

CONFERENCE

NATIONAL

MEMBERS

ASSEMBLY

NATIONAL

EXECUTIVE

COMMITTEE

NATIONAL

WORKING

GROUPS

• Highest Decision-Making Structure;

• Meets every 5 Years after Elections

• Ultimate Authority in between National

Conferences;

• Meets at least twice in between

National Conferences

• Exercise day-to-day executive

authority;

• Meet at least once every 3 months

• Processes the detail and make

recommendations to the NEC;

• Meets Quarterly

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PROVINCIAL GOVERNANCE STRUCTURES

PROVINCIAL

CONFERENCE

PROVINCIAL

MEMBERS

ASSEMBLY

PROVINCIAL

EXECUTIVE

COMMITTEE

PROVINCIAL

WORKING

GROUPS

• Highest Decision-Making Structure;

• Meets every 5 Years after Elections

• Ultimate Authority in between

Provincial Conferences;

• Meets annually between Provincial

Conferences

• Exercise day-to-day executive

authority;

• Meet at least once every 3 months

• Processes the detail and make

recommendations to the PEC;

• Meets Quarterly

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SALGA NCOP DELEGATION

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PROVINCE REPRESENTATIVE

1. Eastern Cape Cllr Zibonele Dumzela

2. Free State Cllr Mxolisi Siyonzana

3. Gauteng Cllr Kgosi Maepa

4. Kwazulu-Natal Cllr William Mapena

5. Limpopo Cllr Mafemani Hlongwani

6. Mpumalanga Cllr Mavis Thusile Charles

7. Northern Cape Cllr Nyameka Shushu

8. North West Cllr Stella Mondlane

9. Western Cape Vacant

10 NEC Representative Cllr Thembisile Nkadimeng

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Operations Finance & SCM

Accounting Officer

HIGH LEVEL ADMINISTRATIVE

DESIGN AND STRUCTURE

Corporate Services &

Human Capital

Management

NEC

IGR

&

STRATEGIC RELATIONS

OPERATIONS ORGANISATIONAL EFFECTIVENESSBUILT ENVIRONMENT & SOCIO-ECONOMIC

DEVELOPMENTMUNICIPAL RESILLIENCE &

CAPACITY

IGR & Parliamentary

Affairs

International & S/H

Relations

• Human Capital

Management

• Secretariat Services

•

• Corporate

Administration

• Corporate Legal &

Contracts

Management

• Provincial Offices

• Programme

Management &

Specialised Services

• Strategic Planning &

Reporting

• Marketing &

Communications

Municipal Capabilities &

Governance

• SCLG

• Business Information

Management,

Innovation & ICT

• (Centre of Excellence)

• Organisational Design,

HR & Management

Systems

• Collective Bargaining &

Labour Relations

• Municipal Governance

• Councilor Welfare &

Pens funds

• Capacity Building

Infrastructure Delivery,

Spatial Transformation

Services & Sustainability

Municipal Finances, Fiscal

Policy and Economic

Growth

• Municipal Finance &

Revenue Advisory

Management

• Economic

Development &

Investment

• MOE Advisory Services

• Municipal Trading

Services

• Built Environment

Inclusive Communities

• Infrastructure Delivery

• Land Use Planning &

Management

• Financial Management

• Supply Chain

Management

• Revenue Management

• Value-added

specialised services

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PART 4

STRATEGY AND PLANNING

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Planning, budgeting and

reporting Cycle

Policy Development /

Environmental Analysis

Strategic Planning/

Annual Performance Plan

SALGA

Planning,

budgeting and

reporting Implementation and

in-year reporting

End-year reportingPerformance planning

and budgeting

Identify desired impacts

Specify performance indicators

Set targets and allocate resources

Monitor and take corrective action

Assess and adjust

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IMPACTS

OUTCOMES

OUTPUTS

INPUTS

ACTIVITIES

The developmental results of achieving

specific outcomes

The medium-term results for specific

beneficiaries that are the consequence

of achieving specific outputs

The final products, or goods and

services produced for delivery

The processes or actions that use a

range of inputs to produce the desired

outputs and ultimately outcomes

The resources that contribute to

the production and delivery of

outputs

What we use to do the work?

What we do?

What we produce or deliver?

What we wish to achieve?

What we aim to change?

Plan, budget,

implement and

monitor

Manage towards

achieving these

results

IMPACTS

OUTCOMES

OUTPUTS

INPUTS

ACTIVITIES

The developmental results of achieving

specific outcomes

The medium-term results for specific

beneficiaries that are the consequence

of achieving specific outputs

The final products, or goods and

services produced for delivery

The processes or actions that use a

range of inputs to produce the desired

outputs and ultimately outcomes

The resources that contribute to

the production and delivery of

outputs

What we use to do the work?

What we do?

What we produce or deliver?

What we wish to achieve?

What we aim to change?

Plan, budget,

implement and

monitor

Manage towards

achieving these

results

Local Government Sector Goals –

long term impact level results

SALGA results that contribute to

sector goals - strategic objectives

and priority programmes

Plan budget, implement and

monitor (delivery of

mandate)

LOGIC FRAMEWORK20

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SALGA’S ROLE IN INSPIRING

CONTINUITY AND CHANGE

• Focus on SALGA’s role as PROTECTOR to enforce

rights of LG robustly

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• Constructively DISRUPT (in positive sense) where

the existing overall system (legislative, fiscal, policy,

institutional) makes it impossible for LG to deliver on

its mandate

• Emerged out of the 2016 national conference with 102 resolutions

DISRUPTOR

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Goal 01

Sustainable, Inclusive

Economic Growth

underpinned by

Spatial

Transformation

Goal 02

Good Governance &

Resilient Municipal

Institutions

Goal 03

Financial

Sustainability of

Local Government

and Fiscal Equity

GOALS22

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OUTCOME 2

Good Governance &

Resilient Municipal

Institutions

OUTCOME 1

Sustainable, Inclusive

Economic Growth and

Spatial Transformation

OUTCOME 3Financial Sustainability of LG

and Fiscal Equity

To support Regional

Economic Strategies

and effective Land Use

Management

approaches for

economies of scale and

social cohesion

To promote high

quality and reliable

Service Provision

and Infrastructure

Investment

To modernise

governance

systems and

processes

To strengthen

oversight and

accountability

To implement a

sustainable

Urban

Development

Programme

To promote

sound and

productive

labour relation

To

professionalise

Local

Government

To strengthen financial

management systems and

controls

To strengthen LG’s

role in Community

Development and

Social Cohesion

To support

innovative

revenue

enhancements

strategies for

local government

To develop and

support the

implementation of

financial strategies for

long term

sustainability and

viability of local

government

SALGA STRATEGY (2017 – 2022) 22

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PART 5

STRATEGY IMPLEMENTATION: WHERE ARE

WE?

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ORGANISATIONAL PERFORMANCE (2007 – 2018)

2015/16

Clean Audit

Opinion

2007/08Qualified Audit

Opinion

2008/09Disclaimer of Audit

Opinion

2009/10Unqualified Audit Opinion

2014/15Clean Audit

Opinion



The last seven (7) years have seen SALGA

grow into a well governed, accountable,

high performance organisation 2016/17

Clean Audit

Opinion

2017/18

Clean Audit

Opinion

2013/14Clean Audit

Opinion 2012/13Clean Audit

Opinion

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2018/19

Clean Audit

Opinion

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75

80

85

90

95

100

2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019

84

9698

100 100

93

98

84

9698

100 100

93

98

Performance over the last six years

SALGA's Quality Assured Annual Performance Percentage (%)

AGSA Audited Annual Performance Percentage (%)

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PERFORMANCE AGAINST CONFERENCE RESOLUTIONS

37

13

44

8

LaggingBehind

Workin Progress

OnTrack

Achieved

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3

0

2

0

3

0 0

5

24

3

1

3

1

3

10

10

7

3

10

2 2

6

8

6

00

5

10

15

20

25

Progress made against Conference Resolutions At Mid-Term

LaggingBehind

Workin Progress

OnTrack

Achieved

COMMISSION 1: SMART, RESILIENT, &

SUSTAINABLE CITIES/URBAN DEVELOPMENT

COMMISSION 2 TRANSFORMING SPACE AND

TACKLING INEQUALITY THROUGH AN

EFFECTIVE NATIONAL AND INTERNATIONAL

AGENDA

COMMISSION 3 REVENUE ENHANCEMENT,

DIVERSIFICATION AND SOUND FISCAL

POLICY

COMMISSION 4 PROMOTING GOOD

GOVERNANCE, ETHICAL LEADERSHIP

COMMISSION 5 EQUITABLE SOCIAL AND

ECONOMIC TRANSFORMATION

COMMISSION 6 BROADBAND AND DIGITAL

CONNECTIVITY

COMMISSION 7 PROFESSIONALISATION AND

REVITALIZING TECHNICAL SKILLS AND

EXPERIENCE IN THE SECTOR

COMMISSION 8 GENDER EQUALITY

COMMISSION 9 YOUTH EQUALITY AND

SKILLS DEVELOPMENT

2016 CONFERENCE

RESOLUTIONS

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GOAL 1: SUSTAINABLE, INCLUSIVE ECONOMIC

GROWTH AND SPATIAL TRANSFORMATION

2017/18 2018/19

Strategic Objective 1.1

To promote high quality and reliable Service

Provision and Infrastructure Investment.

1

2

3

4


To support Regional Economic Strategies and

effective Land Use Management approaches for

economies of scale and social cohesion


To implement a sustainable Urban

Development Programme


To strengthen LG’s role in Community

Development and Social Cohesion

.

2019/20 2020/21

?

?

?

?

2021/22

?

?

? ?

? ?

X

X

?

?

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GOAL 2: GOOD GOVERNANCE & RESILIENT

MUNICIPAL INSTITUTIONS

2017/18 2018/19


To strengthen oversight and accountability1

2

3

4


To modernise governance systems and

processes


To promote sound and productive labour

relation


To professionalise Local Government

2019/20 2020/21

?

?

?

?

2021/22

?

?

? ?

? ?

X ?

?

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X

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GOAL 3: FINANCIAL SUSTAINABILITY OF LG AND

FISCAL EQUITY

2017/18 2018/19


To develop and support the implementation of

financial strategies for long term sustainability and

viability of local government .

1

2

3


To support innovative revenue enhancements

strategies for local government

2019/20 2020/21

?

2021/22

??


To strengthen financial management systems and

controls

? ? ?

? ? ?

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STRATEGIC ENABLERS

2017/18 2018/19

Enabler 1

Efficient and Effective Administration 1

2

3

Enabler 2

Solicit strategic partnerships for local

government

2019/20 2020/21

?

2021/22

??

Enabler 3

Intelligence, research, knowledge

management and innovation

? ? ?

? ? ?

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PART 6

SALGA RISKS AND PROBLEM STATEMENTS

www.salga.org.za

Source: National Treasury Treasury’s State of Local Government Report

Impact of Local Government

Financial Health on SALGA

Financial Health Indicator -

Audit Outcome - 30 June 2014







6 4 7 9

96 92 99 98

27 32 28 39

20 11 12 8

126 123 103 96

3 16 8 7

278 278 257 257

Bankrupt

Insolvent

Solvent - Unable to Pay Creditors

Constraint Liquidity Ratio

Short To Medium Term Viability

Insufficient Reporting

SUMMARY

Increased number of municipalities regarding the following;

• Municipalities in financial distress from 128 (of the 278) in 2015/16 to 146 (57% of the 257),

• Negative cash positions from 40 in 2017/18 to 45 (of the 257),

• Adopting unfunded budgets (i.e. revenue projections are not credible and do not match planned expenditure) increased from 83 in

2017/18 to 113 in 2018/19.

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COMPLIANCE RISKS

• The highly regulated environment causes delay to implement key deliverables.

• No official currently responsible for compliance in SALGA thus there may be

instances where SALGA is not in compliance with the various acts.

• Lack of adequate policies and SOPs causes ambiguity and opens up doors to

non-compliance, use of discretion and inconsistencies in applying the policies.

• Unable to partner with private sector without a prolonged process and creates

delay with implementation to assist municipalities

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OPERATIONAL RISKS

• Organisational structure finalised and placements of staff before the approval of the operating model.

• Reduction in productivity levels as staff are demotivated due to the Organisational redesign.

• Lack of an appropriate retention policy leading to SALGA losing valuable staff members.

• Lack of planning results in things rushed and not done efficiently and cost effectively leading to more ad hoc work being carried out.

• Calibre/ capabilities of SALGA staff providing assistance to municipalities may not be adequate.

• Lack of structured operations to support intergovernmental engagements and lobby platforms.

• Lack of consistent functions and tasks to measure performance and track relevance and impact of execution and value to SALGA and municipalities.

• No organisational system to track all work carried out by staff which in-turn unable to display services rendered to municipalities nor value for money cannot be displayed at any given time.

• Lack of communication to municipalities periodically to build an understanding of what SALGA do and can do for them.

• Lack of understanding by municipalities of SALGA Mandate. Growing expectation by our members to fulfil non-core mandate of SALGA.

• Unclear instructions may result in duplication of efforts or incorrect outcomes.

• Added responsibility of projects/tasks to only certain employees to achieve outputs may create burn-out (over worked) which could result in poor quality and/or poor performance.

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REPUTATIONAL RISKS

• Lack consequence management for wrong doing creates a culture that is prone to fraud and corruption and things done without proper direction or purpose. Lack of policy to deal with NEC members accused of/ committing fraud.

• Lack of accountability by executive management especially regarding the organisational re-design and new operating model hence it’s difficult to get employee buy in to the process.

• SALGA perception by the public and stakeholders seen as extravagant as the costs vs benefits of doing things in a certain way is not understood by all (i.e. the use of a shuttle vs own car or Uber).

• NEC members (politicians) technical capacity is sometimes low and they cannot give appropriate advice to SALGA or lobby on behalf of SALGA when requested to do so. There is no criteria for selecting the political office bearers.

www.salga.org.za

Problem Statements

• Increased Membership Expectations – the ability of SALGA to provide directsupport to members with positive results has increased membershipexpectations;

• Over-reliance on Membership levies – exacerbated by increased inability ofmunicipalities to collect their own revenue and as a consequence service theirdebt and commitments;

• Decrease in Donor Funding – general decrease in donor funded support toSouth Africa due to its improved status as a democracy;

• Limited funding from Government – despite legislated obligations notappropriately funded by Government;

• Threat of Membership withdrawals – though threats at this stage, somemembers intend withdrawing from SALGA;

• Legislative Limitations – due to legislative provisions not allowed to provideservices for a fee.

www.salga.org.za

Thank You

Documents

THE STATE OF SALGA - Municipal Institute of Learning Lekgotla 2020/Day 2.1,Ses… · THE STATE OF SALGA EMT Lekgotla 04 February 2020. ... • Part 4 –SALGA Strategic Plan: Planning,