Chair: Albert van Zyl
This is the letter sent to the Mpumalanga MEC for Finance regarding the Mbombela budget:
PO Box 904
White River
1240
Tel: 083 282 2230
Fax: 086 531 5656
E-mail: asvdm@internetix.co.za
22 May 2009
Mrs Pinky Phosa
MEC Finance
Private Bag X 11205
Nelspruit
1200
Also per fax: (013) 766 4621
CC: Mr JH Hatting
Chief Director: Local Government Budget Analysis
National Treasury
Private Bag X115
Pretoria
0001
Also per fax: (012) 395 6553
CC: Mr FS Siboza
Acting Municipal Manager
PO Box 45
Nelspruit
1200
Also per fax: (013) 759 2274
Dear Madam
MBOMBELA LOCAL MUNICIPALITY – 2009/10 BUDGET NOT PUBLISHED AND CONSULTATIVE MEETINGS CANCELLED
Chapter 4 of the Local Government: Municipal Systems Act, Act 32 of 2000 clearly provides for, and stipulates the responsibility of the municipality in terms of Public Participation and specifically refers to the involvement of the community in the preparation of its budget.
On 14 March 2009, the attached letter was delivered to the office of the Acting Municipal Manager, Mr FS Siboza and received by Mr Jasper Ngobeni (please see annexure A). The Consultative Meetings arranged with members of the public, as per their own published public notices/invitations were cancelled, without proper notice or following proper procedures.
The 2009/10 Mbombela Local Municipal Budget which must be approved by the municipal council at least 30 days before the start of the budget year, has not been published or made available for public comment. Your immediate intervention is requested and we therefore wish to also bring your attention to the following:
1. The initial invitation for public comments requested comments / representations on the draft 2009/10 Municipal Budget on or before 25 May 2009. Hereto attached for your information as Annexure B.
2. Note that consultative meetings with members of the public for purposes of public participation were scheduled from 10-14 May 2009.
3. The draft 2009/10 Municipal Budget has not been made available to date for purposes of meaningful public participation as per our request.
4. According a public notice published in the Lowvelder, 19 May 2009 consultative meetings have been scheduled 23 – 26 May 2009 to discuss not only the budget but also the IDP (Integrated Development Plan). This public notice is hereto attached for ease of reference as annexure C.
5. According to the latest notice, copies of the draft 2009/10 Municipal Budget will be made available from 22 May 2009.
6. As per the public notice comments / representations should reach the office of the Acting Municipal Manager on/before 26 May 2009.
It should be noted that the Mbombela Local Municipality has now extended the date for comments /representation on the budget with one (1) day. If the budget was published and available as per their respective initial public notices, communities would have had 14 working days (excluding 5 May 2009) to prepare and submit comments.
The Mbombela Local Municipality is now planning to make the budget available on 22 May 2009 and comments/representations are due 26 May 2009. The implication is that if the budget is indeed made available for comment on 22 May 2009, the community is afforded only 2 working days to provide the Acting Municipal Manager with comments/representation. As mentioned above Chapter 4 of the Local Government: Municipal Systems Act, Act 32 of 2000 clearly provides for the involvement of the community in the preparation of its budget.
16. Development of culture of community participation
(1) A municipality must develop a culture of municipal governance that complements formal representative government with a system of participatory governance, and must for this purpose-
(a) encourage, and create conditions for, the local community to participate in the affairs of the municipality, including in-
(iv) the preparation of its budget;
It is our submission that the Mbombela Local Municipality is definitely not encouraging and creating conditions for the local community to participate in their affairs with specific reference to the preparation of its budget. It is likely that the Mbombela Local Municipality will not be able to approve their 2009/10 budget before the next financial year without contravening the following legislation.
Chapter 4 of Municipal Systems Act, 32 of 2000
Chapter 4 of Municipal Finance Management Act, 56 of 2003
Municipal Property Rates Act, 6 of 2004 in general
Your immediate intervention is thus herewith requested.
Yours sincerely
Adv. A Smit van der Merwe
On behalf of the respective branches of the
MBOMBELA RATEPAYERS ASSOCIATION
Mnr. Hennie de Lange
CHAIRPERSON
NELSPRUIT RATEPAYERS ASSOCIATION
Mnr. Albert v Zyl
CHAIRPERSON
WHITE RIVER RATEPAYERS ASSOCIATION
Mr FS Siboza
Acting Municipal Manager
PO Box 45
Nelspruit
1200
CC: Chief Financial Officer Ms NT Mthembu
CC: Senior Manager: Office of the Speaker – Public Participation Mr MJ Maseko
PER HAND
Dear Sir
PUBLIC NOTICE: 2009/10 BUDGET CONSULTATIVE MEETINGS
Thank you for informing the public that community consultative meetings have been arranged as per the Public Notice on page 52 of Friday’s edition of the Lowvelder, 08 May 2009, for the purpose of affording the community the opportunity to submit representations / comments with regard to the Draft 2009/10-2011/12 Medium Term Revenue and Expenditure Framework (BUDGET). Copy of advert hereto attached for ease of reference – Annexure A.
In the advert, it is clearly stated that “copies of the draft budget will be made available for inspection in the Office of the Chief Financial Officer, Nelspruit Civic Centre, Room G45, as well as in the various service centres … and will also be displayed on the municipality’s official website (www.mbombela.gov.za) in terms of section 21A of the said Municipal Systems Act”.
Efforts to obtain a copy of the said BUDGET were unsuccessful to date.
1. Copy of the Draft 2009/10-2011/12 Medium Term Revenue and Expenditure Framework (BUDGET) is not displayed on the municipality’s official website.
2. Neither Ms Norah Mthembu nor Mr MJ Maseko could not be reached (at the contact numbers as published in the Public Notice) to obtain a copy of the budget.
3. On Tuesday morning, 12 May 2009 I called your office to assist me in obtaining a copy of the BUDGET. Although I was referred to Ms Norah Mthembu, it was also indicated that she was involved in a meeting. I telephonically raised my frustrations and left a message for Ms Norah Mthembu to contact me.
4. On Wednesday morning, 13 May 2009 I requested Mr Mark Cresswell to visit the Office of the Chief Financial Officer, (Room G45, Nelspruit Civic Centre) to obtain a copy of the BUDGET and it was indicated that a copy is not available, due to the fact that it is not complete.
The legislative provisions (as per your own public notice) are herewith high lighted, as well as the implications of contravention.
Sections 21A and 21B of the said Municipal Systems Act, 2000 provides for the following:
21A. Documents to be made public
(1) All documents that must be made public by a municipality in terms of a requirement of this Act, the Municipal Finance Management Act or other applicable legislation, must be conveyed to the local community -
(a) by displaying the documents at the municipality’s head and satellite offices and libraries;
(b) by displaying the documents on the municipality’s official website, if the municipality has a website as envisaged by section 21B; and
(c) by notifying the local community, in accordance with section 21, of the place, including the website address, where detailed particulars concerning the documents can be obtained.
(2) If appropriate, any notification in terms of subsection (1) (c) must invite the local community to submit written comments or representations to the municipality in respect of the relevant documents.
As indicated above, the documents could neither be obtained from your office, nor downloaded form the official website (www.mbombela.gov.za). It is noted that although the Municipality has an official website, there seems to be non-compliance in terms the provisions of subsections 21B(1)(b) and 21B(3).
21B. Official website
(1) Each municipality must-
(b) place on that official website information required to be made public in terms of this Act and the Municipal Finance Management Act.
(3) The municipal manager must maintain and regularly update the municipality’s official website, if in existence, or provide the relevant information as required by subsection (2).
Your attention is also herewith drawn to Chapter 4 of the Local Government: Municipal Finance Management Act, 2003 (as mentioned in your public notice) which provides for a specific process to be followed in “Municipal Budgets”. Various sections are high lighted below as well as the implications of non-compliance with the provisions of this Chapter.
Publication of annual budgets
22. Immediately after an annual budget is tabled in a municipal council, the
accounting officer of the municipality must-
(a) in accordance with Chapter 4 of the Municipal Systems Act- (see above non-compliance)
(i) make public the annual budget and the documents referred to in section 17(3); and
(ii) invite the local community to submit representations in connection with
the budget.
Consultations on tabled budgets
23. (1) When the annual budget has been tabled, the municipal council must consider any views of
(a) the local community.
Your attention is specifically also drawn to the fact that the local community is unable to submit and provide you with any representations / comments as requested in the public notice because the subject document has not been made available.
The implications of non-compliance with provisions of this Chapter are as follows:
Non-compliance with provisions of this Chapter
27. (1) The mayor of a municipality must, upon becoming aware of any impending*
non-compliance by the municipality of any provisions of this Act or any other legislation
pertaining to the tabling or approval of an annual budget or compulsory consultation
processes, inform the MEC for finance in the province, in writing, of such impending*
non-compliance.
(*impending – [synonyms for impending = looming, in the near future, awaiting, coming)
(3) The mayor of a municipality must, upon becoming aware of any actual
non-compliance by the municipality of a provision of this Chapter, inform the council,
the MEC for finance and the National Treasury, in writing. of-
(a) such non-compliance; and
(b) any remedial or corrective measures the municipality intends to implement to avoid a recurrence.
Chapter 4 of the Local Government: Municipal Systems Act, Act 32 of 2000 clearly provides for, and stipulates the responsibility of the municipality in terms of Public Participation and specifically refers to the involvement of the community in the preparation of its budget.
16. Development of culture of community participation
(1) A municipality must develop a culture of municipal governance that complements formal representative government with a system of participatory governance, and must for this purpose-
(a) encourage, and create conditions for, the local community to participate in the affairs of the municipality, including in-
(iv) the preparation of its budget;
Two branches of the Mbombela Ratepayers Association has been established in terms of subsection 17(2)(d) of the Local Government: Municipal Systems Act, Act 32 of 2000 for purposes of ensuring meaningful public participation as per our vision and mission.
17. Mechanisms, processes and procedures for community participation
(2) A municipality must establish appropriate mechanisms, processes and procedures to enable the local community to participate in the affairs of the municipality, and must for this purpose provide for-
(d) consultative sessions with locally recognised community organisations
As you are aware, the public has the right to be admitted to Council Meetings as per the below provision of the Local Government: Municipal Systems Act, Act 32 of 2000.
20. Admission of public to meetings
(2) A municipal council, or a committee of the council, may not exclude the public, including the media, when considering or voting on any of the following matters:
(a) A draft by-law tabled in the council;
(b) a budget tabled in the council;
You are thus herewith requested to provide space for our representatives (members of the respective Executive Councils as well as any other members of the association who is co-opted for a specific purpose or to fill a vacancy on the Executive Councils) has per the below subsection 20(4)(a)
(4) A municipal council-
(a) within the financial and administrative capacity of the municipality, must provide space for the public in the chambers and places where the council and its committees meet.
In view of the fact that consultative meetings have been arranged as per your public notice: “2009/2010 Budget Consultative Meetings”, without making the budget available, your attention is also brought to the following provisions of the Local Government: Municipal Finance Management Act, 2003.
Failure to approve budget before start of budget year
25. ( 1 ) If a municipal council fails to approve an annual budget, including, revenue-raising measures necessary to give effect to the budget, the council must reconsider the
budget and again vote on the budget, or on an amended version thereof, within seven
days of the council meeting that failed to approve the budget.
(2) The process provided for in subsection (1) must be repeated until a budget,
including revenue-raising measures necessary to give effect to the budget, is approved.
(3) If a municipality has not approved an annual budget, including revenue-raising
measures necessary to give effect to the budget, by the first day of the budget year. The
mayor must immediately comply with section 55.
Section 55 clearly stipulates that if a municipality has not approved an annual budget by the first day of the budget year, the mayor of the municipality must immediately report the matter to the MEC for local government in the province and may recommend to the MEC an appropriate provincial intervention in terms of section 139 of the Constitution.
The consequences of failure to approve a budget before the start of the budget year will result in intervention by the provincial government as provided for in terms of Section 26.
Consequences of failure to approve budget before start of budget year
26. (1) If by the start of the budget year a municipal council has not approved an
annual budget or any revenue-raising measures necessary to give effect to the budget,
the provincial executive of the relevant province must intervene in the municipality in
terms of section 139(4) of the Constitution by taking any appropriate steps to ensure that
the budget or those revenue-raising measures are approved, including dissolving the
council and-
(a) appointing an administrator until a newly elected council has been declared
elected; and
(b) approving a temporary budget or revenue-raising measures to provide for the
continued functioning of the municipality.
The following provision in terms of subsection 26(4) is also highlighted without going into the detailed provisions.
(4) Until a budget for the municipality is approved in terms of subsection (1), funds
for the requirements of the municipality may, with the approval of the MEC for finance
in the province, be withdrawn from the municipality’s bank accounts in accordance with
sub-section (5).
In conclusion, you are herewith requested to provide the respective branches of the Mbombela Ratepayers Association with copies of the following documents/submissions on or before Monday, 18 May 2009 which documents will be collected from your office before 16:00 on Monday, 18 May 2009 for purposes of providing you with our comments as per your public notice.
1. Written documentary proof of the fact that the council, the MEC for finance and the National Treasury have been informed of non-compliance; and any remedial or corrective measures the municipality intends to implement to avoid a recurrence as per Chapter 4 of the Local Government: Municipal Systems Act, Act 32 of 2000.
2. A copy of the Draft 2009/10-2011/12 Medium Term Revenue and Expenditure Framework (BUDGET) in the prescribed format as per Section 17 of the Local Government: Municipal Finance Management Act, 2003 with the following supporting documents:
(a) Draft resolutions-
(i) approving the budget of the municipality;
(ii) imposing any municipal tax and setting any municipal tariffs as may be required for the budget year; and
(iii) approving any other matter that may be prescribed;
(b) measurable performance objectives for revenue from each source and for each vote in the budget, taking into account the municipality’s integrated
development plan;
(c) a projection of cash flow for the budget year by revenue source. broken down per month;
(d) any proposed amendments to the municipality’s integrated development plan
following the annual review of the integrated development plan in terms of
section 34 of the Municipal Systems Act;
(e) any proposed amendments to the budget-related policies of the municipality:
(f) particulars of the municipality’s investments;
(g) any prescribed budget information on municipal entities under the sole or shared control of the municipality;
(h) particulars of all proposed new municipal entities which the municipality
intends to establish or in which the municipality intends to participate:
(i) particulars of any proposed service delivery agreements. including material
amendments to existing service delivery agreements;
( j ) particulars of any proposed allocations or grants by the municipality to-
(i) other municipalities;
(ii) any municipal entities and other external mechanisms assisting the
Municipality in the exercise of its functions or powers:
(iii) any other organs of state;
(iv) any organisations or bodies referred to in section 67( 1 ) :
(k) the proposed cost to the municipality for the budget year of the salary,
allowances and benefits of-
(i) each political office-bearer of the municipality;
(ii) councillors of the municipality; and
(iii) the municipal manager, the chief financial officer, each senior manager
of the municipality and any other official of the municipality having a
remuneration package greater than or equal to that of a senior manager;
( l ) the proposed cost for the budget year to a municipal entity under the sole or
shared control of the municipality of the salary, allowances and benefits of-
(i) each member of the entity’s board of directors: and
(ii) the chief executive officer and each senior manager of the entity; and
(m) any other supporting documentation as may be prescribed.
3. Proof of compliance with MFMA Circular No. 48 and Annexure to MFMA Circular no. 48 as issued by National Treasury and hereto attached for ease of reference as Annexure B.
4. Most resent Annual Financial Report reflecting expenditure and general financial management by the Mbombela Local Municipality.
Yours sincerely
Adv. A Smit van der Merwe
On behalf of the respective branches of the
MBOMBELA RATEPAYERS ASSOCIATION
Hennie de Lange
CHAIRPERSON
NELSPRUIT RATEPAYERS ASSOCIATION
Albert v Zyl
CHAIRPERSON
WHITE RIVER RATEPAYERS ASSOCIATION