Municipal Demarcation Board: Presentation to the Finance Portfolio Committee

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Municipal Demarcation Board Presentation to the
Finance Portfolio Committee

• 19 February 2002

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CONTEXTUALISING FINANCIAL AND ADMINISTRATIVE
CAPACITY IN MUNICIPALITIES

• The demarcation process has created a more
  functional and rational system of municipalities
  with some 284 municipalities
• The 6 metropolitan areas all have significant
  human, financial and technical resources.
• There are significant differences between the
  Category B (Local) municipalities

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Racial breakdown
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Financial Breakdown
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Capacity
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LIMITATIONS ON MUNICIPAL FINANCE MANAGEMENT BILL

• Details are provided in the Boards written
  submission
• Does not adequately appreciate the difference
  between the 3 spheres with special reference to
  the relative financial independence of
  municipalities requiring a different form of
  treasury control and intervention
• Does not appreciate the need for legislative and
  other measures to support and build the capacity
  of municipalities
• Does not understand that political supervision
  must include financial supervision taking
  financial supervision/intervention away from
  political structures may lead to the collapse of
  the political system. Who will respect a
  political structure that has no financial power?
• Bill has not ensured that it prevents overlap or
  duplication.
• Bill does not appreciate what it is requiring of
  municipalities.

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WHAT THE MUNICIPAL DEMARCATION BOARD WOULD LIKE
TO SEE IN THE BILL

• Must give effect to the Constitution
• Must fit into the scheme of three spheres of
  government which are distinctive, interdependent
  and interrelated.
• Must enhances co-operative governance
• Must respects the constitutional status,
  institutions, powers and functions of government
  in the other spheres.
• Must provides for powers and functions in a
  manner that does not encroach on the
  geographical, functional or institutional
  integrity of government in another sphere
• Must foster co-operation between the 3 spheres in
  mutual trust and good faith.
• Must allow for consultation, co-ordination,
  assistance and support between the three spheres.
• Must provide for mechanisms and procedures to
  settle intergovernmental disputes before
  interventions are considered.
• Must form part of the regime of local government
  legislation without overriding or duplicating
  existing legal provisions