Programme Director: SALGA Deputy President, CLLR Pakati
Premier, Dr Phophi Ramathuba
Speaker of Legislature, Me Makoma Makhurupetsa
MEC of CoGHSTA, Mr Makamu
Former: Executive Mayor, President of SALGA , UCLGA and UCLG
President of SALGA, Cllr Stofile
Executive Mayor John Mpe
Executive Mayor Mamedupi Teffo
Mayors and Speakers
Auditor General of South Africa: Tsakani Maluleke
Chairperson of the MDB Mr Manyoni and Former Executive Mayor Mangaung
CEO of SALGA
DGs/HoDs/MMs
Senior Government Officials
Members of the Media
Ladies and Gentlemen
Fellow South Africans

Good Morning

Let me first appreciate the opportunity to have gathered here with you for this important meeting of local government leadership – Joint Councils of Mayors and Speakers.

My being here this morning, brings to me joy and good memories of the 16 years I have spent in the NEC of SALGA.

I dedicate this moment to President former Collins Matjila, President Father Smangaliso Mkhatswa, and President Amos Masondo, whom I had an opportunity to serve under their leadership together with other colleagues and comrades.

To you President Stofile, we always wish you well as you lead this important body of municipalities in the country.

I appreciate this opportunity afforded to me to share insights into the key topic: –

“The Role of Executive Mayors, Mayors, and Speakers to enhance good governance and sustainability”.

I am doing so, on behalf of my Minister Hon Hlabisa: – Bulawayo, who is attending a Cabinet meeting today.

As such I am representing the National Executive and our Department in particular.

The event of today has great significance in the history of local government, given its composition as the meeting of leaders who provide leadership at an important sphere of our government for the growth and development of the country.

The 7th Administration and Local Government

We are meeting here today for the first time after the national and provincial elections, where voters have decided to give us the electoral outcomes that led to the formation of the Government of National Unity because there is no political party that got the majority.

Obviously, in your terrain by now, some of you are familiar with coalitions and you have navigated this reality, and what matters is the evidence of your experiences in managing that and progress thus far in serving the people.

Hence the a need for policy and legislation to address the difficulties related thereto.

This matter will be addressed through the legislative amendments that are underway.

I am bringing to you firstly, a message that the formation of GNU was a major milestone in the history of our country as we pursue the democratic project, of deepening democracy and advancing non-racialism, and non-sexism towards a prosperous society.

The foundation we have laid since 1994 for the democratic social order, certainly would require thoroughgoing consensus to uphold ideas of popular democracy, as an essential element of leading and serving the people based on our Constitutional democracy.

In this regard, we have chosen to collaborate as political parties to create a stable government that would tackle the challenges our nation faces.

We have done so under the circumstances because we understand the grandeur, diversity, and complexities of our country.

That it needs leadership well-grounded in dialectical reasoning and analytic approach to matters of nation-building.

Who fully appreciate the primacy of the Constitution and the fact that the established institutions are there to serve the people.

To contribute towards the socio-economic development of this great nation.

We fully appreciate the imponderable and tragic alternatives we could have imagined including their magnitude and impact on the lives of South Africans.

Undoubtedly, a profound understanding of the current terrain resulted in the correct tactical considerations in the interests of the people and that resulted in the election of the President by Parliament.

Secondly, the country is safe under the leadership of His Excellency President Matamela Cyril Ramaphosa.

The center of gravity holds. He occupies a strategic confluence of political developments and events in the context of GNU for coherence and functional systems in government.

In this regard the underlying principle is to serve the people based on Batho Pele principles to better their living conditions.

Hence, we urge all South Africans to unite in building an effective, efficient and community-focused local government that meets the needs and aspirations of the people.

And appreciate the national moment, that it requires concerted efforts to navigate our country through the current phenomenon.

I am confident that we will succeed because success is a choice we made.

This would require leaders who appreciate the current moment and continue to become and remain, true representatives of the people and intensify participatory democracy and involvement of the people in decision making processes.

We fully recognize and believe that for every municipality to function effectively, good governance is essential and non-negotiable in this regard.

After the formation of GNU, the President in his State of the Nation Address raised seven fundamental issues that remain and continue to be programme areas around local government transformation.

He said the following:   that we must bring stability to governance in metros and cities, restore the delivery of services, strengthen the ability of national government to intervene in municipalities which fail to meet minimum norms and standards.

Fast track the development and maintenance of water treatment and distribution infrastructure and wastewater treatment systems.
Strengthen the regulation of municipal water functions and separate water services authorities from water services providers to enable improved oversight and greater efficiency guided by performance.
Standardize and professionalize the appointment of municipal managers and CFO’s, and ensure independent regulation and oversight of the appointment process.

Implement the reforms of the local government system to improve governance and achieve financial sustainability.
Collaborate with traditional and Khoi-San leadership on local development and land management.
We are expected to make sure that Political Office Bearers of municipalities have good relationships with traditional leaders.

Implement financing incentives to support reform and access to funding for investment in urban trading services.
Foremost to the above-mentioned areas of local government, the national government has articulated three fundamental priorities that would pre-occupy us for social production and progress: –

Drive inclusive economic growth and job creation:

We have interests as leaders of the sectors, to take this mandate with zeal and contribute to this agenda of national importance of building our economy for the benefit of the people.

Reduce poverty and tackle the high cost of living:

As leaders of the sector, we should be involved in many projects that would create spaces of success in many ways, working together with communities to have activities of economic value of whatever kind that would bring food to the table.

Build a capable, ethical and developmental state:

As leaders of the sector, we should seriously make contributions in the creation of functional and productive institutions of the people. Ethical leadership is an ingredient so much required for the success of municipalities and there winning the trust and confidence if the people.

Guided by this policy pronouncement on matters of our sector, we come together today with a shared objective: – to improve the lives of all South Africans and make our municipal areas, spaces of activism in societal development.

In this context, the 1998 White Paper on Local Government remains a defining policy document, that offers insights into political intentions and thinking about developmental local government.

This policy framework describes local government as a sphere intended to serve the citizens and work with them, together with other social forces in society to find solutions and meet their social, economic, and material needs and improve the quality of their lives.

As such the political leadership of municipalities should: Continue to provide community-wide leadership and vision,

Constantly builds its capacity to make policy decisions and correct judgments ensure accountability and transparency
ensure social and economic development of their areas represent diverse interests and democratize approaches.

The President has instructed us to roll out Operation Vulindlela focusing on municipalities. As such we will be focusing on metros to address their challenges working with their leaders and not only limited to that but also pay attention to Cities, Small towns, and municipalities in rural areas.

Development of rural areas is essential for the livelihood of the people staying there.

The killing of Councillors and Traditional leaders is a major concern to the national government and our department. We will continue to work with the Police Ministry on this matter.

Leaders without followers are simply a man taking a walk:” as John Boerhner once said”

We understand the intersectionality of race, class, and gender and their impact on political power, economy, and socio-cultural relations. Compounded by the intractable factors of poverty, unemployment and inequality. They make the lives of nations including ours unpleasant.

Because of structural inequalities that are disproportionate to the soil resources and minerals straddling our landscape.Understandably these remain fault lines in the life of the nation that need a strong government with appropriate instruments to grow the economy. For it is the base responsible for all the difficulties we are experiencing.

Local government leaders are expected to rise to the occasion as part of the leadership of the country, to grapple with the implementation of these key priorities. Create investor-friendly conditions and facilitate catalytic projects of great impact that would benefit the people you are leading.

So that people can have services, food, and development.

Under the circumstances, our approach to matters of societal development should be broader than we could think, and we need to become very creative given the competitive advantages of your areas.

Understanding good governance

The local government transformation has been an enormous medium to long-term undertaking and by no means a short-term project.

Similarly improving municipal performance is a dynamic process that requires leadership to realize its set objectives and goals.

It is of note that this transformation was directed at removing the racial basis of government, integrating society, and redistributing municipal services.

This process occurred in three phases: -Pre Interim, Interim, and Final Phase.

As mentioned, I have been invited to speak at this forum on enhancing good governance and sustainability.

Each year, the Auditor General releases municipal audit outcomes, and one of the recurring findings in those reports is the presence of weak or poor governance among municipalities.

This concern has been consistently highlighted by the Auditor-General and numerous other institutions within the government.

A good starting point is to ask ourselves: what do we mean by good governance?  With 21 years of experience in democratic local government, it’s important to focus on the lived experience of good governance.

Good governance involves evaluating how public institutions conduct public affairs, manage public resources, and uphold human rights while remaining free from abuse and corruption, all in accordance with the rule of law.

Good governance must be rooted in a strong foundation, characterized by a well-functioning municipality with stable council and administrative leadership supported by effective oversight committees.

This also requires a leadership culture that fosters zero tolerance for misconduct and enforces consequence management when necessary.

That is, malfeasance and malversation cannot become permanent features of the systems of government.

Therefore, the socio-economic and political ecosystem of government would be incomplete without strong and functional municipalities.

Continue to work hard to make your municipalities centres of excellence and those who are challenged, should improve their performance and institutional capacities.

Over the past 24 years, various policy, legislative, regulatory and support program measures have been brought to stabilize local government and to give it its impetus to operate optimally.

Amongst these support measures have been various interventions which all seem not to have yielded the intended results, e.g., Municipal Support Program, Project Viability, Project Consolidate, and Local Government Turnaround Strategy, Siyenza Manje and current Back to Basics.

It is evident that in dealing with the current state of local government and challenges related thereto, consideration should be given to political, administrative, institutional and financial matters.

The success or failure of everything organisation or institution is the function of leadership.

In this regard, the Ministry believes very strongly that working together with you as Mayors and Speakers nothing is impossible.

Therefore amongst other tasks, we are going to support the challenged municipalities, while we are strengthening and assisting those who are doing well.

I would like to encourage all of us to envision local governments that effectively serve the people.

It is crucial to make sustained efforts aimed at changing, the course of events in our favor and achieving decisive superiority for both posture and strength and practical application.

And position all the municipalities for high performance.

This demand of us, profound mutation in this process of local government transformation.

Therefore, we should remain faithful to the principles, the people and the fundamental cause of the transformation agenda long articulated in the 1998 White Paper on Local Government.

The State of Local Government Report is a continued reminder of the urgent need to address our municipalities. The report gives us the actual state of the municipalities you are leading, and you know exactly your different circumstances. It is our collective responsibilities and mandate to make those institutions functional and achieve their primary purpose, being to serve the people of South Africa, our beautiful land.

While we have seen an improvement from 66 municipalities facing challenges to 34 requiring attention, we must not overlook the other municipalities that also need our support, as mandated by Section 154 of the Constitution.

This report shows the gradual progress we are making in positioning municipalities as actual institutions at the service of the people.

Role of mayors and speakers

Ladies and gentlemen, those of us gathered here today, particularly mayors and speakers, hold a crucial position within the governance framework of local government.

You serve as representatives of the people, entrusted with the vital responsibility of addressing the needs and aspirations of your communities.

You are poised at the coalface of service delivery and are expected to exhibit composure and self-assuredness, as you perform your duties.

By encouraging democratic participation, you empower citizens to have a say in decision-making processes, fostering transparency, inclusivity, and accountability.

Mayors and speakers are at the forefront of delivering essential services that directly affect the daily lives of residents.

These services encompass water, sewerage, sanitation, roads, healthcare, education, infrastructure provision, disaster management, electricity, safety etc.

In two years, we will be going for the 2026 Municipal elections and hopefully, as you would like to continue serving the people, you should ensure that they do get these services.

In fact, you are expected to provide a basket of services.

Additionally, you play a pivotal role in promoting sustainable development within your municipalities and pursue the set development trajectory guided by the National Development Plan, and of course your Integrated Development Plans.

You are responsible for implementing policies and initiatives that support environmental protection, economic growth, social equity, and resilience against climate change.

By advocating for sustainable practices and investments, you contribute to creating a livable and prosperous future for both current and future generations.

Financial Management

Mayors have significant financial responsibilities under the Municipal Finance Management Act (MFMA). It is crucial for them to manage finances effectively, especially with ongoing budget cuts, reduced revenue, and unpaid municipal services.

Mayors and Speakers need to ensure that budget plans are aligned with available funds to avoid unfunded budgets. They should actively participate in budgetary processes, revenue generation, expenditure control, and accountability mechanisms, ensuring responsible and transparent management of public funds.

Maintaining high standards of financial management is essential for the financial stability and sustainability of municipalities, enabling efficient service delivery and future planning.

During financial crises, mayors and speakers play a vital role in leading recovery efforts. Through strategic planning, fiscal discipline, and stakeholder engagement, they can overcome challenges and establish a foundation for long-term prosperity.

It is important for the entire leadership to focus on enhancing the financial sustainability of municipalities. Prioritizing revenue management, expenditure control, financial planning, debt management, and capacity building can significantly impact the fiscal health of municipalities.

Additionally, robust stakeholder engagement, regulatory compliance, strategic infrastructure investment, and innovative financing solutions are crucial for financial improvement.

To support these efforts, the Department of Cooperative Governance and Traditional Affairs (CoGTA) has been actively engaging with various departments and key stakeholders to ensure that municipalities are well-prepared for financial recovery and performance.

A critical part of this initiative is the implementation of financial recovery plans, requiring commitment to the Financial Recovery Plan (FRP) and the Eskom Debt Relief Programme, as well as addressing Municipal-Waterboard debts.

There is a need to address existing debts for improving the fiscal health of municipalities, and also explore ways to handle municipal-consumer debts.

Strong leadership is necessary to approve policies aligning with recovery objectives, establish effective oversight mechanisms, and create an environment conducive to capacity building.

The objective of the Municipal Finance Management Act (Act No. 56 of 2003) is to ensure sound and sustainable management of the fiscal and financial affairs of municipalities.

Similarly, the Municipal Structures Act (Act No. 117 of 1998) requires the development of municipal strategies, programs, and services to address priority needs through integrated development planning and consider applicable national and provincial development plans.

COGTA work in promoting good governance

We are currently working to address challenges in our municipalities. To support municipalities in need, we are implementing interventions outlined in sections 139(1)(b), 139(5), and 139(7) of the Constitution, in collaboration with provinces and the national government.

To guide the development, implementation, and monitoring of Municipal Support and Intervention Plans (MSIPs), we have collaborated with the provinces, SALGA, and NT to develop a framework.

We have also created the Intergovernmental Monitoring, Support and Interventions (IMSI) Bill to regulate the implementation of sections 100(3) and 139(8) of the Constitution.

We are committed to supporting municipalities under section 154 of the Constitution, which obliges the department to provide support.

We have observed ineffective governance structures, lack of accountability, and poor management of finances. To address this, we are taking steps to ensure the effective functioning of Municipal Public Accounts Committees (MPACs) and providing training and workshops to provinces and municipalities.

MPACs now have an expanded role, including reviewing Internal Audit reports, scrutinizing Auditor-General reports, and making informed recommendations to the Council. Additionally, a new provision in the Municipal Structures Amendment Act of 2021 mandates that all municipalities establish MPACs.

Municipalities are actively implementing recommendations from various investigations, demonstrating our commitment to accountability and governance improvement.

To improve financial management, we are providing technical assistance to selected municipalities, focusing on records management, data handling, and accuracy of auditing.

All these efforts aim to enhance governance and financial management within municipalities.

District Development Mode

L (DDM)

We therefore must institutionalize the District Development Model. The approved DDM One Plans will now be implemented across 52 Districts and Metros, to ensure integration and collaborative efforts in planning and implementation.

Through the DDM we have an opportunity to improve Cooperative Governance aimed at building a capable, ethical and developmental state, including improving and enhancing the state of Local Government.

In this regard, Mayors have a critical oversight role to play through the DDM political committees together with the national and provincial DDM political champions, to ensure effective institutionalization of the DDM.

In addition, Mayors should also as part of the DDM political leadership collective in the respective district and metro spaces, find innovative ways of social compacting by involving local traditional leadership, civil society and private sector organizations to ensure that the DDM is implemented as both an all-of-government and an all-of society approach.

In the province we are in today – Limpopo – we are seeing how working together with all stakeholders through the DDM is creating an enabling environment for partnerships for service delivery with the private sector, which will ensure that challenges in municipalities are addressed.

Anti-corruption support

Ladies and Gentlemen, we can all agree that corruption undermines the constitutional values and principles of good governance and thus poses a serious challenge towards the attainment of the objectives we set ourselves.

Although a number of interventions are being implemented by role-players aimed at enhancing the fight against corruption across the three spheres, especially in municipalities, it is evident that more is still required.

It is in this context that the National Anti-Corruption Strategy calls for “a whole of society approach” when it comes to fighting corruption and the promotion of ethics and integrity.

The strategy covers elements of prevention, detection, investigation and resolution and also highlights the critical role that our communities play when it comes to fighting corruption.

As such, the Local Government Anti-Corruption Forum (LGACF) was established to foster collaboration amongst the stakeholders at the local government level in order to effectively prevent corruption and coordinate efforts amongst all the key stakeholders.

Ethics

Ethical leadership remains one of the key challenges across our municipalities, hence continued collaboration with The Ethics Institute (TEI), the South African Local Government Association (SALGA), and the Moral Regeneration Movement (MRM).

Through this partnership, we will soon launch the Code for Ethical Leadership in Local Government.

This Code is aimed at promoting good ethical leadership in local government and incorporates a governance Code that sets out the principles and practices for ethical governance and ethical leadership in local government.

We should therefore not tire, but collectively ensure that heightened anti-corruption including preventative and enforcement initiatives are continuously undertaken.

Professionalisation

The Constitution requires municipalities to structure and manage their administration, budgeting and planning processes so as to give priority to the basic needs of municipalities and to promote the social and economic development of their local communities.

This obligation was founded on a framework of efficient, effective and transparent local public administration, and human resources that conforms to constitutional principles where municipal councils have the authority to employ personnel necessary for the effective performance of their functions.

The law now prescribe that persons appointed as senior managers in municipalities must have the relevant skills, expertise, competencies and qualifications, and requires that candidates for senior managers positions to undergo a competency-based assessment before they are appointed by municipal councils.

Furthermore, the Systems Act provides a caveat that a decision to appoint a senior manager and any contract concluded between the municipal council and that person in consequence of the decision is null and void if the person so appointed does not meet the prescribed skills, expertise, competencies or qualifications.

The implementation of these legislative reforms, particularly the Competency Framework for Senior Managers (the Competency Framework) contributed immensely to government’ resolve to build a capable State.

The introduction of competency assessments laid a foundation and built confidence in recruitment and selection processes resulting in high calibre candidates appointed as senior managers by municipal councils post the 2016 LGE.

The Local Government: Competency Framework for Occupational Streams was introduced in November 2022 aimed at building a professional and ethical local public administration.

The main objective of this Framework is to ensure that senior managers are appointed on merit while at the same time insulating municipal administration from undue interference, by amongst critical factors ensure formalisation of integrity assessments as mandatory throughout local government.

It is against this backdrop that the Department of Cooperative Governance is reviewing the current competency framework for senior managers.

The Department has now embarked on preparations to pilot the competency assessment batteries across different categories of municipalities.

Legislation

Let me now address our key legislative initiatives which are critical to enhancing our local government framework and to enhance good governance and sustainability.

We are in this regard supporting Parliament in processing these legislations, knowing the positive impact it will have on communities and our governance system.

A comprehensive review of legislation, to consolidate good practices and address challenges holistically, led to the development of the Local Government: General Laws Amendment Bill which amends the Local Government: Municipal Systems Act, 2000; the Local Government: Municipal Structures Act, 1998; and the Local Government: Municipal Property Rates Act, 2004. Approved by Cabinet on 27 March, the Bill was published for public comments, with the deadline extended to 31 July.

The Independent Municipal Demarcation Authority Bill, which amends the Local Government: Municipal Demarcation Act, 1998, has been introduced. This Bill was deferred to the 7th Administration, and we will now ensure that it is finalized.

In response to calls for structured guidelines and legislation for coalition governance, the Department has introduced the Local Government: Municipal Structures Amendment Bill, 2024. Approved by Cabinet on 27 March, the Bill was published for public comments, with submissions extended to 31 July.

In compliance with Sections 100(3) and 139(8) of the Constitution, the Intergovernmental Monitoring, Support, and Interventions Bill was developed to guide interventions in provinces and municipalities. The Bill has undergone constitutional compliance testing by the Office of the Chief State Law Advisor and a Socio-Economic Impact Assessment by the Presidency. Gazetted in July last year, the Bill was presented to the Cabinet Committee in March and was subsequently approved by the Cabinet.

We have also initiated a review of the 1998 White Paper on Local Government which is a landmark document guiding democratic local government since 2000.

The review aims to identify shortcomings in policy and implementation, proposing recommendations and further developing legislation to improve local government.

There are assumptions that were made since then which need review.

The President has called for the review of Local Government Finance. We should work together with SALGA to attend to this assignment and make proposals on the new municipal funding model.

Conclusion

In conclusion, the roles of Mayors and Speakers in the 7th administration under the GNU in South Africa remain key to the success of our municipalities and the well-being of our communities.

Your leadership, dedication, and commitment to serving the needs of our people is essential for building a prosperous and inclusive future.

As we move forward, let us embrace the principles of transparency, accountability, and good governance.

Let us work together to address the challenges we face and seize the opportunities before us.

By fulfilling our roles with integrity and purpose, we can make a lasting difference in the lives of our citizens and create a brighter future for all.

Our mission is clear: Every Municipality Must Work. This is not just a slogan, but a commitment to our citizens, a pledge to transform challenges into opportunities, and a call to action for every leader within local government.

I thank you.