7. Ms D M Baartman to ask Mr A W Bredell, Minister of Local Government, Environmental Affairs and Development Planning
With regard to the poor audit reports that the Laingsburg Municipality has received since 2018:
Whether he and his Department have any plans to assist the Municipality with a diagnostic analysis of the Municipality; if so, (a) what would the scope of such a diagnostic analysis of the Municipality entail and (b) what process is followed when prima facie irregularities, fraud or corruption are identified?
The Department has scheduled a diagnostic analysis / assessment with the Municipality. On request of the Municipality, to assist it in managing current operational pressures; such as the finalization of the 2021/22 Budget, IDP and related provincial processes, the Department has delayed the commencement date of the assessment with two weeks.
However, it should be noted that a provincial support plan has been in place for the Laingsburg Municipality since September 2018. This includes requisite progress monitoring of the projects contained in the support plan by a Municipal Support Committee; composed of provincial and municipal officials under the leadership of the Municipal Manager. Monitoring is conducted on a quarterly basis, to ensure that all provincial support mutually agreed to is adhered to and finalised.
(a) A multi-disciplinary team of senior officials from the Departments of Local Government, Environmental Affairs and Development Planning, Human Settlements and Provincial Treasury, conducts the diagnostic assessment with the Municipal Manager and senior managers in the different business units in the Municipality.
In terms of the practical arrangements, the diagnostic assessment takes place in the form of virtual interviews, given the current COVID-19 lock-down arrangements, and is supplemented with the collection of specific information, policies and other documents.
The product of the assessment is a comprehensive support package aimed at addressing all challenges found at the conclusion of the assessment. A Municipal Support Committee; composed of provincial and municipal officials under the leadership of the Municipal Manager, monitors progress made in addressing projects contained in the support package. Support plans are monitored monthly or quarterly, depending on the severity of the challenges found in a municipality.
(b) It should be noted that the intention behind a diagnostic analysis / assessment is not to investigate whether there are identified irregularities, fraud or corruption occurring within the Municipality.
Nevertheless, section 106 of the Municipal Systems Act, 2000 (“the Systems Act”) requires me, as the Provincial Minister responsible for Local Government, to initiate a provincial investigation in respect of a municipality in the Western Cape where (i) I have reason to believe that that municipality cannot or does not fulfil a statutory obligation binding on that municipality or that maladministration, fraud, corruption or any other serious malpractice has occurred or is occurring in that municipality; and (ii) I consider such an investigation necessary.
A provincial investigation in terms of section 106 of the Systems Act must be preceded by a pre-investigation assessment, as required in terms of section 5 of the Western Cape Monitoring and Support of Municipalities Act, 2014 (“the Western Cape Act”). As part of the pre-investigation assessment, I am required, amongst other things, to provide the municipality in question with an opportunity to provide written representations on any allegations that are being considered for a possible investigation in terms of section 106 of the Systems Act and to then objectively assess all available information before taking a decision on the necessity for a provincial investigation.
