Local Government: Municipal Systems Act, 2000

Act 32 of 2000

Local Government: Municipal Systems Act, 2000

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Act 32 of 2000

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English

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Local Government: Municipal Systems Act, 2000

Act 32 of 2000

Published in Government Gazette 21776 on 20 November 2000
Assented to on 14 November 2000
There are multiple commencements

Provisions	Status
Chapter 1 (section 1); Chapter 2 (section 2–7); Chapter 3 (section 8–15); Chapter 4 (section 16–22); Chapter 7 (section 50–72); Chapter 8 (section 73–94); Chapter 9 (section 95–104); Chapter 10 (section 105–108); Chapter 11 (section 109–118); Chapter 12 (section 119–124)	commenced on 1 March 2001 by Proclamation R18 of 2001.
Chapter 5 (section 23–37); Chapter 6 (section 38–49)	commenced on 1 July 2001 by Proclamation R18 of 2001.
Chapter 7, Part 3, section 59(4), section 62(6); Chapter 8, Part 1, section 75A; Part 2, section 77(a)(i)–(iii), (b)(i)–(iii); Chapter 11, section 109A, section 118(1A), (4)–(5)	commenced on 5 December 2002.
Chapter 3, section 9(1)(a)(i)–(iii), (1)(b)(i)–(viii), (2)(a)(i)–(iii), (2)(b)(i)–(viii), (3)(a)(i)–(iv), section 10(a)–(c), section 10A; Chapter 4, section 21A–21B; Chapter 7, Part 2, section 57(4A)–(4B); Chapter 8, Part 2, section 78(3)(c), (6), section 80(1)(aA), (3), section 81(2)(bA); Part 4A (section 86A); Chapter 8A (section 86B–94)	commenced on 1 August 2004.
Chapter 7, Part 4, section 71A; Part 5, section 72(1)(c)–(l); Chapter 8A, Part 3, section 86H(3); Chapter 9, section 102(3); Chapter 10, Part 1, section 106(3)(a)–(b)	commenced on 13 October 2008.
Chapter 7, Part 2, section 54A, section 56(1)–(9), section 56A, section 57(2)(a)(i)–(ii), (3)(a)–(b), (4C), section 57A; Part 4, section 66(3)–(5), section 71(1)–(3); Part 5, section 72(1)(c)(ii)(aa)–(bb), (1)(gA)–(gC), (2)(c); Chapter 10, Part 1, section 106(5)	commenced on 5 July 2011.
Chapter 7, Part 2, section 54(1)–(13), section 54A(13), section 56(5)(a)–(b), (10); Part 4, section 71B; Chapter 10, Part 1, section 106(1A), (6)	commenced on 1 November 2022.

[This is the version of this document from 1 November 2022.]

[Amended by Institution of Legal Proceedings against certain Organs of State Act, 2002 (Act 40 of 2002) on 28 November 2002]
[Amended by Local Government Laws Amendment Act, 2002 (Act 51 of 2002) on 5 December 2002]
[Amended by Local Government: Municipal Systems Amendment Act, 2003 (Act 44 of 2003) on 1 August 2004]
[Amended by Local Government: Municipal Systems Amendment Act, 2003 (Act 44 of 2003) on 1 December 2004]
[Amended by Local Government: Municipal Property Rates Act, 2004 (Act 6 of 2004) on 2 July 2005]
[Amended by Municipal Fiscal Powers and Functions Act, 2007 (Act 12 of 2007) on 7 September 2007]
[Amended by Local Government Laws Amendment Act, 2008 (Act 19 of 2008) on 13 October 2008]
[Amended by Local Government: Municipal Systems Amendment Act, 2011 (Act 7 of 2011) on 5 July 2011]
[Amended by Local Government: Municipal Structures Amendment Act, 2021 (Act 3 of 2021) on 1 November 2021]
[Amended by Local Government: Municipal Systems Amendment Act, 2022 (Act 3 of 2022) on 1 November 2022]

(English text signed by the Acting President.)ACTTo provide for the core principles, mechanisms and processes that are necessary to enable municipalities to move progressively towards the social and economic upliftment of local communities, and ensure universal access to essential services that are affordable to all; to define the legal nature of a municipality as including the local community within the municipal area, working in partnership with the municipality’s political and administrative structures; to provide for the manner in which municipal powers and functions are exercised and performed; to provide for community participation; to establish a simple and enabling framework for the core processes of planning, performance management, resource mobilisation and organisational change which underpin the notion of developmental local government; to provide a framework for local public administration and human resource development; to empower the poor and ensure that municipalities put in place service tariffs and credit control policies that take their needs into account by providing a framework for the provision of services, service delivery agreements and municipal service districts; to provide for credit control and debt collection; to establish a framework for support,, monitoring and standard setting by other spheres of government in order to progressively build local government into an efficient, frontline development agency capable of integrating the activities of all spheres of government for the overall social and economic upliftment of communities in harmony with their local natural environment; to provide for legal matters pertaining to local government; and to provide for matters incidental thereto.

Whereas the system of local government under apartheid failed dismally to meet the basic needs of the majority of South Africans;Whereas the Constitution of our non-racial democracy enjoins local government not just to seek to provide services to all our people but to be fundamentally developmental in orientation;Whereas there is a need to set out the core principles, mechanisms and processes that give meaning to developmental local government and to empower municipalities to move progressively towards the social and economic upliftment of communities and the provision of basic services to all our people, and specifically the poor and the disadvantaged;Whereas a fundamental aspect of the new local government system is the active engagement of communities in the affairs of municipalities of which they are an integral part, and in particular in planning, service delivery and performance management;Whereas the new system of local government requires an efficient, effective and transparent local public administration that conforms to constitutional principles;Whereas there is a need to ensure financially and economically viable municipalities;Whereas there is a need to create a more harmonious relationship between municipal councils, municipal administrations and the local communities through the acknowledgement of reciprocal rights and duties;Whereas there is a need to develop a strong system of local government capable of exercising the functions and powers assigned to it; andWhereas this Act is an integral part of a suite of legislation that gives effect to the new system of local government;BE IT THEREFORE ENACTED by the Parliament of the Republic of South Africa, as follows:—

Chapter 1
Interpretation

1. Legal nature

In this Act, unless inconsistent with the context—"basic municipal services" means a municipal service that is necessary to ensure an acceptable and reasonable quality of life and, if not provided, would endanger public health or safety or the environment;"board of directors", in relation to a municipal entity, means the board of directors of the entity;[definition of "board of directors" inserted by section 1(a) of Act 44 of 2003]"by-law" means legislation passed by the council of a municipality binding in the municipality on the persons to whom it applies;"category", in relation to municipalities, means a category A, B or C municipality envisaged in section 155(1) of the Constitution;"citizen" means a citizen of the Republic as envisaged in section 3 of the Constitution;"Code of Conduct", in relation to—(a)a councillor, means the Code of Conduct set out in Schedule 1; and(b)a staff member of a municipality, means the Code of Conduct set out in Schedule 2;"councillor" means a member of a municipal council;"delegating authority"—(a)in relation to a delegation of a power or duty by a municipal council, means the municipal council; or(b)in relation to a subdelegation of a power or duty by another political structure, or by a political office bearer, councillor or staff member of a municipality, means that political structure, political office bearer, councillor or staff member;"delegation", in relation to a duty, includes an instruction to perform the duty, and "delegate" has a corresponding meaning;"development" means sustainable development, and includes integrated social, economic, environmental, spatial, infrastructural, institutional, organisational and human resources upliftment of a community aimed at—(a)improving the quality of life of its members with specific reference to the poor and other disadvantaged sections of the community; and(b)ensuring that development serves present and future generations;"district municipality" means a category C municipality envisaged in section 155(1)(c) of the Constitution;"effective control", in relation to a private company, means the power which a shareholder in the private company may have—(a)to appoint or remove at least the majority of the board of directors of the private company; or(b)to control at least the majority of the voting rights at a general meeting of the private company;[definition of "effective control" inserted by section 1(b) of Act 44 of 2003]"environmentally sustainable", in relation to the provision of a municipal service, means the provision of a municipal service in a manner aimed at ensuring that—(a)the risk of harm to the environment and to human health and safety is minimised to the extent reasonably possible under the circumstances;(b)the potential benefits to the environment and to human health and safety are maximised to the extent reasonably possible under the circumstances: and(c)legislation intended to protect the environment and human health and safety is complied with;"executive authority", in relation to a municipality, means the municipality’s executive authority envisaged in section 156 of the Constitution, read with section 11 of this Act;"external service provider" means an external mechanism referred to in section 76(b) which provides a municipal service for a municipality;[definition of "external service provider" inserted by section 1(c) of Act 44 of 2003]"financially sustainable", in relation to the provision of a municipal service, means the provision of a municipal service in a manner aimed at ensuring that the financing of that service from internal and external sources, including budgeted income, grants and subsidies for the service, is sufficient to cover the costs of—(a)the initial capital expenditure required for the service;(b)operating the service; and(c)maintaining, repairing and replacing the physical assets used in the provision of the service;"integrated development plan" means a plan envisaged in section 25;"labour legislation" includes collective agreements in terms of the Labour Relations Act, 1995 (Act No. 66 of 1995);"local community" or "community", in relation to a municipality, means that body of persons comprising—(a)the residents of the municipality;(b)the ratepayers of the municipality;(c)any civic organisations and non-governmental, private sector or labour organisations or bodies which are involved in local affairs within the municipality; and(d)visitors and other people residing outside the municipality who, because of their presence in the municipality, make use of services or facilities provided by the municipality,and includes, more specifically, the poor and other disadvantaged sections of such body of persons;"local municipality’" means a category B municipality envisaged in section 155(1)(b) of the Constitution;"MEC" means a member of a provincial Executive Council;"MEC for local government" means the MEC responsible for local government in a province;"Minister" means the national Minister responsible for local government;"multi-jurisdictional service utility" means a body established in terms of section 87;[definition of "multi-jurisdictional service utility" inserted by section 1(d) of Act 44 of 2003]"municipal council" or "council" means a municipal council referred to in section 157(1) of the Constitution;"municipal entity" means—(a)a private company referred to in section 86B(1)(a);(b)a service utility; or(c)a multi-jurisdictional service utility;[definition of "municipal entity" substituted by section 1(e) of Act 44 of 2003]"Municipal Finance Management Act" means the Local Government: Municipal Finance Management Act, 2003, and any regulations made under that Act;[definition of "Municipal Finance Management Act" inserted by section 1(f) of Act 44 of 2003]"municipality", when referred to as—(a)an entity, means a municipality as described in section 2; and(b)a geographic area, means a municipal area determined in terms of the Local Government: Municipal Demarcation Act, 1998 (Act No. 27 of 1998);"municipal manager" means a person appointed in terms of section 54A;[definition of "municipal manager" substituted by section 1(a) of Act 7 of 2011 and by section 1(a) of Act 3 of 2022]"municipal service" means a service that a municipality in terms of its powers and functions provides or may provide to or for the benefit of the local community irrespective of whether—(a)such a service is provided, or to be provided, by the municipality through an internal mechanism contemplated in section 76 or by engaging an external mechanism contemplated in section 76; and(b)fees, charges or tariffs are levied in respect of such a service or not;[definition of "municipal service" inserted by section 35(a) of Act 51 of 2002]"Municipal Structures Act" means the Local Government: Municipal Structures Act, 1998 (Act No. 117 of 1998);"national organ of state" means an organ of state functioning within the national sphere of government;"National Treasury" means the National Treasury established by section 5 of the Public Finance Management Act, 1999 (Act No. 1 of 1999);[definition of "National Treasury" inserted by section 1(g) of Act 44 of 2003]"organised local government" means an organisation recognised in terms of section 2 (1) of the Organised Local Government Act, 1997 (Act No. 52 of 1997), to represent local government nationally or provincially;"organ of state" means an organ of state as defined in section 239 of the Constitution;"parent municipality"—(a)in relation to a municipal entity which is a private company in respect of which effective control vests in a single municipality, means that municipality;(b)in relation to a municipal entity which is a private company in respect of which effective control vests in two or more municipalities collectively, means each of those municipalities;(c)in relation to a municipal entity which is a service utility, means the municipality which established the entity; or(d)in relation to a municipal entity which is a multi-jurisdictional service utility, means each municipality which is a party to the agreement establishing the service utility;[definition of "parent municipality" inserted by section 1(h) of Act 44 of 2003]"political office", in relation to a political party or structure thereof, means—(a)the position of chairperson, deputy chairperson, secretary, deputy secretary, treasurer or an elected or appointed decision-making position of a political party nationally or in any province, region or other area in which the party operates; or(b)any position in the party equivalent to a position referred to in paragraph (a), irrespective of the title designated to the position;[definition of "political office" inserted by section 1(b) of Act 7 of 2011 and substituted by section 1(b) of Act 3 of 2022]"ownership control" [definition of "ownership control" deleted by section 1(i) of Act 44 of 2003]"political office bearer" means the speaker, executive mayor, deputy executive mayor, mayor, deputy mayor or a member of the executive committee as referred to in the Municipal Structures Act;[definition of "political office bearer" substituted by section 11 of Act 19 of 2008]"political structure", in relation to a municipality, means the council of the municipality or any committee or other collective structure of a municipality elected, designated or appointed in terms of a specific provision of the Municipal Structures Act;"prescribe" means prescribe by regulation or guidelines in terms of section 120, and "prescribed" has a corresponding meaning;"private company" means a company referred to in sections 19 and 20 of the Companies Act, 1973 (Act No. 61 of 1973); and[definition of "private company" inserted by section 1(j) of Act 44 of 2003]"property" means—(a)immovable property registered in the name of a person, and includes a unit as defined in section 1 of the Sectional Titles Act, 1986 (Act No. 95 of 1986); or(b)a right registered against immovable property in the name of a person; and[definition of "property" inserted by section 35(b) of Act 51 of 2002]"Provincial Gazette" means the official gazette of the province concerned;"provincial organ of state" means an organ of state functioning within the provincial sphere of government;"ratepayer", in relation to a municipality, means a person who is liable to the municipality for the payment of—(a)rates on property in the municipality;(b)any other tax, duty or levy imposed by the municipality; or(c)fees for services provided either by the municipality or in terms of a service delivery agreement;"registrar of deeds" means a registrar as defined in section 102 of the Deeds Registries Act, 1937 (Act No. 47 of 1937);[definition of "registrar of deeds" inserted by section 35(c) of Act 51 of 2002]"resident", in relation to a municipality, means a person who is ordinarily resident in the municipality;"secondment" means an employee who perform duties in terms of an agreement between their employer and the relevant official in organ of state receiving the employee;[definition of "secondment" inserted by section 1(c) of Act 3 of 2022]"service authority" means the power of a municipality to regulate the provision of a municipal service by a service provider;"service delivery agreement" means an agreement between a municipality and an institution or person mentioned in section 76(b) in terms of which a municipal service is provided by that institution or person, either for its own account or on behalf of the municipality;"service provider" means a person or institution or any combination of persons and institutions which provide a municipal service;"service utility" means a body established in terms of section 86H;[definition of "service utility" substituted by section 1(k) of Act 44 of 2003]"staff", in relation to a municipality, means the employees of the municipality, including the municipal manager;"this Act" includes any regulations made in terms of section 120;"type", in relation to municipalities, means a type of municipality envisaged in section 155(2) of the Constitution, and defined in Part 2 of Chapter 1 of the Municipal Structures Act.

Chapter 2
Legal nature and rights and duties of municipalities

2. Legal nature

A municipality—

(a)is an organ of state within the local sphere of government exercising legislative and executive authority within an area determined in terms of the Local Government: Municipal Demarcation Act, 1998;

(b)consists of—

(i)the political structures and administration of the municipality; and

(ii)the community of the municipality;

(c)functions in its area in accordance with the political, statutory and other relationships between its political structures, political office bearers and administration and its community; and

(d)has a separate legal personality which excludes liability on the part of its community for the actions of the municipality.

3. Co-operative government

(1)Municipalities must exercise their executive and legislative authority within the constitutional system of co-operative government envisaged in section 41 of the Constitution.

(2)The national and provincial spheres of government must, within the constitutional system of co-operative government envisaged in section 41 of the Constitution, exercise their executive and legislative authority in a manner that does not compromise or impede a municipality’s ability or right to exercise its executive and legislative authority.

(3)For the purpose of effective co-operative government, organised local government must seek to—

(a)develop common approaches for local government as a distinct sphere of government;

(b)enhance co-operation, mutual assistance and sharing of resources among municipalities;

(c)find solutions for problems relating to local government generally; and

(d)facilitate compliance with the principles of co-operative government and intergovernmental relations.

4. Rights and duties of municipal councils

(1)The council of a municipality has the right to—

(a)govern on its own initiative the local government affairs of the local community;

(b)exercise the municipality’s executive and legislative authority, and to do so without improper interference; and

(c)finance the affairs of the municipality by—

(i)charging fees for services; and

(ii)imposing surcharges on fees, rates on property and, to the extent authorised by national legislation, other taxes, levies and duties.

(2)The council of a municipality, within the municipality’s financial and administrative capacity and having regard to practical considerations, has the duty to—

(a)exercise the municipality’s executive and legislative authority and use the resources of the municipality in the best interests of the local community;

(b)provide, without favour or prejudice, democratic and accountable government;

(c)encourage the involvement of the local community;

(d)strive to ensure that municipal services are provided to the local community in a financially and environmentally sustainable manner;

(e)consult the local community about—

(i)the level, quality, range and impact of municipal services provided by the municipality, either directly or through another service provider; and

(ii)the available options for service delivery;

(f)give members of the local community equitable access to the municipal services to which they are entitled;

(g)promote and undertake development in the municipality;

(h)promote gender equity in the exercise of the municipality’s executive and legislative authority;

(i)promote a safe and healthy environment in the municipality; and

(j)contribute, together with other organs of state, to the progressive realisation of the fundamental rights contained in sections 24, 25, 26, 27 and 29 of the Constitution.

(3)A municipality must in the exercise of its executive and legislative authority respect the rights of citizens and those of other persons protected by the Bill of Rights.

5. Rights and duties of members of local community

(1)Members of the local community have the right—

(a)through mechanisms and in accordance with processes and procedures provided for in terms of this Act or other applicable legislation to—

(i)contribute to the decision-making processes of the municipality; and

(ii)submit written or oral recommendations, representations and complaints to the municipal council or to another political structure or a political office bearer or the administration of the municipality;

(b)to prompt responses to their written or oral communications, including complaints, to the municipal council or to another political structure or a political office bearer or the administration of the municipality;

(c)to be informed of decisions of the municipal council, or another political structure or any political office bearer of the municipality, affecting their rights, property and reasonable expectations;

(d)to regular disclosure of the state of affairs of the municipality, including its finances;

(e)to demand that the proceedings of the municipal council and those of its committees must be—

(i)open to the public, subject to section 20;

(ii)conducted impartially and without prejudice; and

(iii)untainted by personal self-interest;

(f)to the use and enjoyment of public facilities; and

(g)to have access to municipal services which the municipality provides, provided the duties set out in subsection (2)(b) are complied with.

(2)Members of the local community have the duty—

(a)when exercising their rights, to observe the mechanisms, processes and procedures of the municipality;

(b)where applicable, and subject to section 97(1)(c), to pay promptly service fees, surcharges on fees, rates on property and other taxes, levies and duties imposed by the municipality;

(c)to respect the municipal rights of other members of the local community;

(d)to allow municipal officials reasonable access to their property for the performance of municipal functions; and

(e)to comply with by-laws of the municipality applicable to them.

6. Duties of municipal administrations

(1)A municipality’s administration is governed by the democratic values and principles embodied in section 195(1) of the Constitution.

(2)The administration of a municipality must—

(a)be responsive to the needs of the local community;

(b)facilitate a culture of public service and accountability amongst staff;

(c)take measures to prevent corruption;

(d)establish clear relationships, and facilitate co-operation and communication, between it and the local community;

(e)give members of the local community full and accurate information about the level and standard of municipal services they are entitled to receive; and

(f)inform the local community how the municipality is managed, of the costs involved and the persons in charge.

7. Exercise of rights and performance of duties

The rights and duties of municipal councils and of the members of the local community, and the duties of the administrations of municipalities, as set out in sections 4, 5 and 6, are subject to the Constitution, the other provisions of this Act and other applicable legislation.

Chapter 3
Municipal functions and powers

8. General empowerment

(1)A municipality has all the functions and powers conferred by or assigned to it in terms of the Constitution, and must exercise them subject to Chapter 5 of the Municipal Structures Act.

(2)A municipality has the right to do anything reasonably necessary for, or incidental to, the effective performance of its functions and the exercise of its powers.

9. Assignment of functions or powers to municipalities generally by Acts of Parliament or provisional Acts

(1)A Cabinet member or Deputy Minister seeking to initiate the assignment of a function or power by way of an Act of Parliament to municipalities in general, or any category of municipalities, must within a reasonable time before the draft Act providing for the assignment is introduced in Parliament—

(a)request the Financial and Fiscal Commission to assess the financial and fiscal implications of the legislation, after informing the Financial and Fiscal Commission of the possible impact of such assignment on—

(i)the future division of revenue between the spheres of government in terms of section 214 of the Constitution;

(ii)the fiscal power, fiscal capacity and efficiency of municipalities or any category of municipalities; and

(iii)the transfer, if any, of employees, assets and liabilities; and

(b)consult the Minister, the Minister of Finance and organised local government representing local government nationally with regard to—

(i)the assessment by the Financial and Fiscal Commission contemplated in paragraph (a);

(ii)the policy goals to be achieved by the assignment and the reasons for utilising assignment as the preferred option;

(iii)the financial implications of the assignment projected over at least three years;

(iv)any possible financial liabilities or risks after the three-year period referred to in subparagraph (iii);

(v)the manner in which additional expenditure by municipalities as a result of the assignment will be funded;

(vi)the implications of the assignment for the capacity of municipalities;

(vii)the assistance and support that will be provided to municipalities in respect of the assignment; and

(viii)any other matter that may be prescribed.

(2)An MEC seeking to initiate the assignment of a function or power by way of a provincial Act to municipalities, or any category of municipalities, in the province must, within a reasonable time before the draft provincial Act providing for the assignment is introduced in the relevant provincial legislature—

(i)the future division of revenue between the spheres of government in terms of section 214 of the Constitution;

(ii)the fiscal power, fiscal capacity and efficiency of municipalities or any category of municipalities; and

(iii)the transfer, if any, of employees, assets and liabilities; and

(b)consult the MEC for local government, the MEC responsible for finance, and organised local government representing local government in the province, with regard to—

(i)the assessment by the Financial and Fiscal Commission contemplated in paragraph (a);

(ii)the policy goals to be achieved by the assignment and the reasons for utilising assignment as the preferred option;

(iii)the financial implications of the assignment projected over at least three years;

(iv)any possible financial liabilities or risks after the three-year period referred to in subparagraph (iii);

(v)the manner in which additional expenditure by municipalities as a result of the assignment will be funded;

(vi)the implications of the assignment for the capacity of municipalities;

(vii)the assistance and support that will be provided to municipalities in respect of the assignment; and

(viii)any other matter that may be prescribed.

(3)When draft legislation referred to in subsection (1) or (2) is introduced in Parliament or a provincial legislature, the legislation must be accompanied by—

(a)a memorandum—

(i)giving at least a three-year projection of the financial and fiscal implications of the assignment of that function or power for those municipalities;

(ii)disclosing any possible financial liabilities or risks after the three-year period;

(iii)indicating how any additional expenditure by those municipalities will be funded; and

(iv)indicating the implications of the assignment for the capacity of those municipalities; and

(b)the assessment of the Financial and Fiscal Commission referred to in subsection (1)(a) or (2)(a), as the case may be;

[section 9 substituted by section 2 of Act 44 of 2003]

10. Assignment of functions or powers to specific municipalities by acts of executive or by agreement

If a function or power is assigned to any specific municipality in terms of a power contained in an Act of Parliament or a provincial Act, or by agreement in terms of section 99 or 126 of the Constitution, the organ of state assigning the function or power must, before assigning the function or power, submit to the Minister and the National Treasury a memorandum—

(a)giving at least a three-year projection of the financial implications of that function or power for the municipality; and

(b)disclosing any possible financial liabilities or risks after the three-year period; and

(c)indicating how any additional expenditure by the municipality will be funded.

[section 10 substituted by section 3 of Act 44 of 2003]

10A. Funding and capacity building

The Cabinet member, MEC or other organ of state initiating an assignment of a function or power to a municipality in terms of section 9 or 10, must take appropriate steps to ensure sufficient funding, and such capacity-building initiatives as may be needed, for the performance of the assigned function or power by the municipality if—

(a)the assignment of the function or power imposes a duty on the municipality;

(b)that duty falls outside the functional areas listed in Part B of Schedule 4 or Part B of Schedule 5 to the Constitution or is not incidental to any of those functional areas; and

(c)the performance of that duty has financial implications for the municipality.

[section 10A inserted by section 4 of Act 44 of 2003]

11. Executive and legislative authority

(1)The executive and legislative authority of a municipality is exercised by the council of the municipality, and the council takes all the decisions of the municipality subject to section 59.

(2)A municipality may exercise executive and legislative authority within its boundaries only, but may, by written agreement with another municipality and subject to Chapter 5 of the Municipal Structures Act and other applicable national legislation, exercise executive authority in the area of that other municipality.

(3)A municipality exercises its legislative or executive authority by—

(a)developing and adopting policies, plans, strategies and programmes, including setting targets for delivery;

(b)promoting and undertaking development;

(c)establishing and maintaining an administration;

(d)administering and regulating its internal affairs and the local government affairs of the local community;

(e)implementing applicable national and provincial legislation and its by-laws;

(f)providing municipal services to the local community, or appointing appropriate service providers in accordance with the criteria and process set out in section 78;

(g)monitoring and, where appropriate, regulating municipal services where those services are provided by service providers other than the municipality;

(h)preparing, approving and implementing its budgets;

(i)imposing and recovering rates, taxes, levies, duties, service fees and surcharges on fees, including setting and implementing tariff, rates and tax and debt collection policies;

(j)monitoring the impact and effectiveness of any services, policies, programmes or plans;

(k)establishing and implementing performance management systems;

(l)promoting a safe and healthy environment;

(m)passing by-laws and taking decisions on any of the above-mentioned matters; and

(n)doing anything else within its legislative and executive competence.

(4)A decision taken by a municipal council or any other political structure of the municipality must be recorded in writing.

12. Legislative procedures

(1)Only a member or committee of a municipal council may introduce a draft by-law in the council.

(2)A by-law must be made by a decision taken by a municipal council—

(a)in accordance with the rules and orders of the council; and

(b)with a supporting vote of a majority of its members.

(3)No by-law may be passed by a municipal council unless—

(a)all the members of the council have been given reasonable notice; and

(b)the proposed by-law has been published for public comment in a manner that allows the public an opportunity to make representations with regard to the proposed by-law.

(4)Subsections (1) to (3) also apply when a municipal council incorporates by reference, as by-laws, provisions of—

(a)legislation passed by another legislative organ of state; or

(b)standard draft by-laws made in terms of section 14.

13. Publication of by-laws

A by-law passed by a municipal council—

(a)must be published promptly in the Provincial Gazette, and, when feasible, also in a local newspaper or in any other practical way to bring the contents of the by-law to the attention of the local community; and

(b)takes effect when published or on a future date determined in or in terms of the by-law.

14. Standard draft by-laws

(1)

(a)The Minister, at the request of organised local government representing local government nationally, or after consulting the MECs for local government and organised local government, may by notice in the Gazette—

(i)make standard draft by-laws concerning any matter, including standard draft rules and orders referred to in section 160(6) of the Constitution, for which municipal councils may make by-laws; and

(ii)amend any standard draft by-laws made in terms of subparagraph (i).

(b)Before making any standard draft by-laws or amendment in terms of paragraph (a), the Minister must—

(i)publish the proposed standard draft by-laws or amendment in the Gazette for public comment; and

(ii)consult the Cabinet member concerned if those standard draft by-laws or amendment affect that Cabinet member’s area of responsibility.

(2)

(a)An MEC for local government, on request by organised local government representing local government in the province, or after consulting the Minister and organised local government, may by notice in the Provincial Gazette—

(i)make standard draft by-laws concerning any matter for which municipal councils in the province may make by-laws; and

(ii)amend any standard draft by-laws made in terms of subparagraph (i).

(b)Before making any standard draft by-laws or amendment in terms of paragraph (a), the MEC must—

(i)publish the proposed standard draft by-laws or amendment in the Provincial Gazette for public comment; and

(ii)consult the MEC concerned if those standard draft by-laws or amendment affect that MEC’s area of responsibility.

(3)

(a)A standard draft by-law or an amendment of a standard draft by-law is applicable in a municipality only if, and to the extent and subject to any modifications and qualifications, adopted by the council of that municipality.

(b)The repeal of a standard draft by-law after it has been adopted by a municipality does not affect the continuation of that by-law in that municipality.

(4)If a municipal council intends to adopt a standard draft by-law with or without any modifications or qualifications, it must follow the procedure set out in section 12 (3) and, after adoption, publish the by-law in accordance with section 13.

15. Municipal code

(1)A municipality must compile and maintain in bound or loose-leaf form, and when feasible also in electronic format, a compilation of all its by-laws, including any provisions incorporated by reference as by-laws of the municipality.

(2)This compilation, to be known as the municipal code, must be—

(a)constantly updated and annotated; and

(b)kept at the municipality’s head office as the municipality’s official record of all applicable by-laws.

(3)The municipality, at the request of a member of the public, must provide that person with a copy of or an extract from its municipal code against payment of a reasonable fee determined by the municipal council.

Chapter 4
Community participation

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—

(i)the preparation, implementation and review of its integrated development plan in terms of Chapter 5;

(ii)the establishment, implementation and review of its performance management system in terms of Chapter 6;

(iii)the monitoring and review of its performance, including the outcomes and impact of such performance;

(iv)the preparation of its budget; and

(v)strategic decisions relating to the provision of municipal services in terms of Chapter 8;

(b)contribute to building the capacity of—

(i)the local community to enable it to participate in the affairs of the municipality; and

(ii)councillors and staff to foster community participation; and

(c)use its resources, and annually allocate funds in its budget, as may be appropriate for the purpose of implementing paragraphs (a) and (b).

(2)Subsection (1) must not be interpreted as permitting interference with a municipal council’s right to govern and to exercise the executive and legislative authority of the municipality.

17. Mechanisms, processes and procedures for community participation

(1)Participation by the local community in the affairs of the municipality must take place through—

(a)political structures for participation in terms of the Municipal Structures Act;

(b)the mechanisms, processes and procedures for participation in municipal governance established in terms of this Act;

(c)other appropriate mechanisms, processes and procedures established by the municipality;

(d)councillors; and

(e)generally applying the provisions for participation as provided for in this Act.

(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—

(a)the receipt, processing and consideration of petitions and complaints lodged by members of the local community;

(b)notification and public comment procedures, when appropriate;

(c)public meetings and hearings by the municipal council and other political structures and political office bearers of the municipality, when appropriate;

(d)consultative sessions with locally recognised community organisations and, where appropriate, traditional authorities; and

(e)report-back to the local community.

(3)When establishing mechanisms, processes and procedures in terms of subsection (2) the municipality must take into account the special needs of—

(a)people who cannot read or write;

(b)people with disabilities;

(c)women; and

(d)other disadvantaged groups.

(4)A municipal council may establish one or more advisory committees consisting of persons who are not councillors to advise the council on any matter within the council’s competence. When appointing the members of such a committee, gender representivity must be taken into account.

18. Communication of information concerning community participation

(1)A municipality must communicate to its community information concerning—

(a)the available mechanisms, processes and procedures to encourage and facilitate community participation;

(b)the matters with regard to which community participation is encouraged;

(c)the rights and duties of members of the local community; and

(d)municipal governance, management and development.

(2)When communicating the information mentioned in subsection (1), a municipality must take into account—

(a)language preferences and usage in the municipality; and

(b)the special needs of people who cannot read or write.

19. ***

[section 19 repealed by section 37 of Act 3 of 2021]

20. Admission of public to meetings

(1)Meetings of a municipal council and those of its committees are open to the public, including the media, and the council or such committee may not exclude the public, including the media, from a meeting, except when—

(a)it is reasonable to do so having regard to the nature of the business being transacted; and

(b)a by-law or a resolution of the council specifying the circumstances in which the council or such committee may close a meeting and which complies with paragraph (a), authorises the council or such committee to close the meeting to the public.

(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;

(c)the municipality’s draft integrated development plan, or any amendment of the plan, tabled in the council;

(d)the municipality’s draft performance management system, or any amendment of the system, tabled in the council;

(e)the decision to enter into a service delivery agreement referred to in section 16(b); or

(f)any other matter prescribed by regulation.

(3)An executive committee mentioned in section 42 of the Municipal Structures Act and a mayoral committee mentioned in section 60 of that Act may, subject to subsection (1)(a), close any or all of its meetings to the public, including the media.

(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; and

(b)may take reasonable steps to regulate public access to, and public conduct at, meetings of the council and its committees.

21. Communications to local community

(1)When anything must be notified by a municipality through the media to the local community in terms of this Act or any other applicable legislation, it must be done—

(a)in the local newspaper or newspapers of its area;

(b)in a newspaper or newspapers circulating in its area and determined by the council as a newspaper of record; or

(c)by means of radio broadcasts covering the area of the municipality.

(2)Any such notification must be in the official languages determined by the council, having regard to language preferences and usage within its area.

(3)A copy of every notice that must be published in the Provincial Gazette or the media in terms of this Act or any other applicable legislation, must be displayed at the municipal offices.

(4)When the municipality invites the local community to submit written comments or representations on any matter before the council, it must be stated in the invitation that any person who cannot write may come during office hours to a place where a staff member of the municipality named in the invitation, will assist that person to transcribe that person’s comments or representations.

(5)

(a)When a municipality requires a form to be completed by a member of the local community, a staff member of the municipality must give reasonable assistance to persons who cannot read or write, to enable such persons to understand and complete the form.

(b)If the form relates to the payment of money to the municipality or to the provision of any service, the assistance must include an explanation of its terms and conditions.

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.

[section 21A inserted by section 5 of Act 44 of 2003]

21B. Official website

(1)Each municipality must—

(a)establish its own official website if the municipality decides that it is affordable; and

(b)place on that official website information required to be made public in terms of this Act and the Municipal Finance Management Act.

(2)If a municipality decides that it is not affordable for it to establish its own official website, it must provide the information in terms of legislation referred to in subsection (1)(b) for display on an organised local government website sponsored or facilitated by the National Treasury.

(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).

[section 21B inserted by section 5 of Act 44 of 2003]

22. Regulations and guidelines

(1)The Minister may in terms of section 120 make regulations or issue guidelines concerning—

(a)minimum standards for municipalities, including minimum standards relating to funding, when implementing the provisions of this Chapter; and

(b)any matter that may facilitate—

(i)the participation of the local community in the affairs of the municipality; or

(ii)the application of this Chapter.

(2)When making regulations or issuing guidelines in terms of section 120 to provide for or to regulate the matters mentioned in subsection (1) of this section, the Minister must—

(a)take into account the capacity of municipalities to comply with those matters; and

(b)differentiate between different kinds of municipalities according to their respective capacities.

(3)The Minister, by notice in the Gazette, may phase in the application of the provisions of this Chapter which place a financial or administrative burden on municipalities.

(4)A notice in terms of subsection (3) may—

(a)determine different dates on which different provisions of this Chapter become applicable to municipalities;

(b)apply to all municipalities generally;

(c)differentiate between different kinds of municipalities which may for the purpose of the phasing in of the relevant provisions, be defined in the notice in relation to categories or types of municipalities or in any other way; or

(d)apply to a specific kind of municipality only, as defined in the notice.

Chapter 5
Integrated development planning

Part 1 – General

23. Municipal planning to be developmentally oriented

(1)A municipality must undertake developmentally-oriented planning so as to ensure that it—

(a)strives to achieve the objects of local government set out in section 152 of the Constitution;

(b)gives effect to its developmental duties as required by section 153 of the Constitution; and

(c)together with other organs of state contribute to the progressive realisation the fundamental rights contained in sections 24, 25, 26, 27 and 29 of the Constitution.

(2)Subsection (1) must be read with Chapter 1 of the Development Facilitation Act, 1995 (Act No. 67 of 1995).

24. Municipal planning in co-operative government

(1)The planning undertaken by a municipality must be aligned with, and complement, the development plans and strategies of other affected municipalities and other organs of state so as to give effect to the principles of co-operative government contained in section 41 of the Constitution.

(2)Municipalities must participate in national and provincial development programmes as required in section 153(b) of the Constitution.

(3)If municipalities are required to comply with planning requirements in terms of national or provincial legislation, the responsible organs of state must—

(a)align the implementation of that legislation with the provisions of this Chapter; and

(b)in such implementation—

(i)consult with the affected municipality; and

(ii)take reasonable steps to assist the municipality to meet the time limit mentioned in section 25 and the other requirements of this Chapter applicable to its integrated development plan.

(4)An organ of state initiating national or provincial legislation requiring municipalities to comply with planning requirements, must consult with organised local government before the legislation is introduced in Parliament or a provincial legislature, or, in the case of subordinate legislation, before that legislation is enacted.

25. Adoption of integrated development plans

(1)Each municipal council must, within a prescribed period after the start of its elected term, adopt a single, inclusive and strategic plan for the development of the municipality which—

(a)links, integrates and co-ordinates plans and takes into account proposals for the development of the municipality;

(b)aligns the resources and capacity of the municipality with the implementation of the plan;

(c)forms the policy framework and general basis on which annual budgets must be based;

(d)complies with the provisions of this Chapter; and

(e)is compatible with national and provincial development plans and planning requirements binding on the municipality in terms of legislation.

(2)An integrated development plan adopted by a municipal council in terms of subsection (1) may be amended in terms of section 34 and remain in force until an integrated development plan is adopted by the next elected council.

(3)

(a)A newly elected municipal council may, within the prescribed period referred to in subsection (1), adopt the integrated development plan of its predecessor, but before taking a decision it must comply with section 29(1)(b)(i), (c) and (d).

(b)A newly elected municipal council that adopts the integrated development plan of its predecessor with amendments, must effect the amendments in accordance with the process referred to in section 34(b).

(4)A municipality must, within 14 days of the adoption of its integrated development plan in terms of subsection (1) or (3)—

(a)give notice to the public—

(i)of the adoption of the plan; and

(ii)that copies of or extracts from the plan are available for public inspection at specified places; and

(b)publicise a summary of the plan.

Part 2 – Contents of integrated development plans

26. Core components of integrated development plans

An integrated development plan must reflect—

(a)the municipal council’s vision for the long term development of the municipality with special emphasis on the municipality’s most critical development and internal transformation needs;

(b)an assessment of the existing level of development in the municipality, which must include an identification of communities which do not have access to basic municipal services;

(c)the council’s development priorities and objectives for its elected term, including its local economic development aims and its internal transformation needs;

(d)the council’s development strategies which must be aligned with any national or provincial sectoral plans and planning requirements binding on the municipality in terms of legislation;

(e)a spatial development framework which must include the provision of basic guidelines for a land use management system for the municipality;

(f)the council’s operational strategies;

(g)applicable disaster management plans;

(h)a financial plan, which must include a budget projection for at least the next three years; and

(i)the key performance indicators and performance targets determined in terms of section 41.

Part 3 – Process for planning, drafting, adopting and review of integrated development plans

27. Framework for integrated development planning

(1)Each district municipality, within a prescribed period after the start of its elected term and after following a consultative process with the local municipalities within its area, must adopt a framework for integrated development planning in the area as a whole.

(2)A framework referred to in subsection (1) binds both the district municipality and the local municipalities in the area of the district municipality, and must at least—

(a)identify the plans and planning requirements binding in terms of national and provincial legislation on the district municipality and the local municipalities or on any specific municipality;

(b)identify the matters to be included in the integrated development plans of the district municipality and the local municipalities that require alignment;

(c)specify the principles to be applied and co-ordinate the approach to be adopted in respect of those matters; and

(d)determine procedures—

(i)for consultation between the district municipality and the local municipalities during the process of drafting their respective integrated development plans; and

(ii)to effect essential amendments to the framework.

28. Adoption of process

(1)Each municipal council, within a prescribed period after the start of its elected term, must adopt a process set out in writing to guide the planning, drafting, adoption and review of its integrated development plan.

(2)The municipality must through appropriate mechanisms, processes and procedures established in terms of Chapter 4, consult the local community before adopting the process.

(3)A municipality must give notice to the local community of particulars of the process it intends to follow.

29. Process to be followed

(1)The process followed by a municipality to draft its integrated development plan, including its consideration and adoption of the draft plan, must—

(a)be in accordance with a predetermined programme specifying timeframes for the different steps;

(b)through appropriate mechanisms, processes and procedures established in terms of Chapter 4, allow for—

(i)the local community to be consulted on its development needs and priorities;

(ii)the local community to participate in the drafting of the integrated development plan; and

(iii)organs of state, including traditional authorities, and other role players to be identified and consulted on the drafting of the integrated development plan;

(c)provide for the identification of all plans and planning requirements binding on the municipality in terms of national and provincial legislation; and

(d)be consistent with any other matters that may be prescribed by regulation.

(2)A district municipality must—

(a)plan integrated development for the area of the district municipality as a whole but in close consultation with the local municipalities in that area;

(b)align its integrated development plan with the framework adopted in terms of section 27; and

(c)draft its integrated development plan, taking into account the integrated development processes of, and proposals submitted to it by the local municipalities in that area.

(3)A local municipality must—

(a)align its integrated development plan with the framework adopted in terms of section 27; and

(b)draft its integrated development plan, taking into account the integrated development processes of, and proposals submitted to it by the district municipality.

30. Management of drafting process

The executive committee or executive mayor of a municipality or, if the municipality does not have an executive committee or executive mayor, a committee of councillors appointed by the municipal council, must, in accordance with section 29—

(a)manage the drafting of the municipality’s integrated development plan;

(b)assign responsibilities in this regard to the municipal manager; and

(c)submit the draft plan to the municipal council for adoption by the council.

31. Provincial monitoring and support

The MEC for local government in the province may, subject to any other law regulating provincial supervision of local government—

(a)monitor the process followed by a municipality in terms of section 29;

(b)assist a municipality with the planning, drafting, adoption and review of its integrated development plan;

(c)facilitate the co-ordination and alignment of—

(i)integrated development plans of different municipalities, including those of a district municipality and the local municipalities within its area; and

(ii)the integrated development plan of a municipality with the plans, strategies and programmes of national and provincial organs of state;

(d)take any appropriate steps to resolve disputes or differences in connection with the planning, drafting, adoption or review of an integrated development plan between—

(i)a municipality and the local community; and

(ii)different municipalities.

32. Copy of integrated development plan to be submitted to MEC for local government

(1)

(a)The municipal manager of a municipality must submit a copy of the integrated development plan as adopted by the council of the municipality, and any subsequent amendment to the plan, to the MEC for local government in the province within 10 days of the adoption or amendment of the plan.

(b)The copy of the integrated development plan to be submitted in terms of paragraph (a) must be accompanied by—

(i)a summary of the process referred to in section 29(1);

(ii)a statement that the process has been complied with, together with any explanations that may be necessary to amplify the statement; and

(iii)in the case of a district and a local municipality, a copy of the framework adopted in terms of section 27.

(2)The MEC for local government in the province may, within 30 days of receiving a copy of an integrated development plan or an amendment to the plan, or within such reasonable longer period as may be approved by the Minister, request the relevant municipal council—

(a)to adjust the plan or the amendment in accordance with the MEC’s proposals, if the plan or amendment—

(i)does not comply with a requirement of this Act; or

(ii)is in conflict with or is not aligned with or negates any of the development plans and strategies of other affected municipalities or organs of state; or

(b)to comply with the process referred to in section 29, or with a specific provision of this Act relating to the process of drafting or amending integrated development plans if the municipality has failed to comply with that process or provision, and to adjust the plan or the amendment if that becomes necessary after such compliance.

(3)A municipal council must consider the MEC's proposals, and within 30 days of receiving the MEC’S request must—

(a)if it agrees with those proposals, adjust its integrated development plan or amendment in accordance with the MEC's request; or

(b)if it disagrees with the proposals, object to the MEC's request and furnish the MEC with reasons in writing why it disagrees.

(4)On receipt of an objection in terms of subsection (3)(b) the MEC may refer the municipality’s objection to an ad hoc committee referred to in section 33 for decision by the committee. If the MEC decides to refer an objection to an ad hoc committee, the objection must be referred within 21 days of receipt of the objection.

33. Ad hoc committees

(1)Whenever necessary, the MEC for local government in a province must appoint an ad hoc committee consisting of members representing local government, the provincial government and the national government to decide on an objection by a municipality in terms of section 32(3)(b).

(2)The MEC appoints the members of an ad hoc committee representing—

(a)local government, with the concurrence of the municipality which lodged the objection and any other municipality involved in the dispute;

(b)the provincial government, with the concurrence of the provincial organ or organs of state involved in the dispute or in whose functional area the dispute is located; and

(c)the national government, with the concurrence of the national organ or organs of state involved in the dispute or in whose functional area the dispute is located.

(3)An objection referred to an ad hoc committee must be dealt with in accordance with procedures prescribed by regulation.

(4)A matter before an ad hoc committee is decided if at least two spheres of government agree on the matter.

(5)If the ad hoc committee rejects the municipality’s objection, the municipality must, within 30 days of the date on which the committee has taken the decision and informed the municipality, comply with the MEC’s request.

34. Annual review and amendment of integrated development plan

A municipal council—

(a)must review its integrated development plan—

(i)annually in accordance with an assessment of its performance measurements in terms of section 41; and

(ii)to the extent that changing circumstances so demand; and

(b)may amend its integrated development plan in accordance with a prescribed process.

Part 4 – Miscellaneous

35. Status of integrated development plan

(1)An integrated development plan adopted by the council of a municipality—

(a)is the principal strategic planning instrument which guides and informs all planning and development, and all decisions with regard to planning, management and development, in the municipality;

(b)binds the municipality in the exercise of its executive authority, except to the extent of any inconsistency between a municipality’s integrated development plan and national or provincial legislation, in which case such legislation prevails; and

(c)binds all other persons to the extent that those parts of the integrated development plan that impose duties or affect the rights of those persons have been passed as a by-law.

(2)A spatial development framework contained in an integrated development plan prevails over a plan as defined in section 1 of the Physical Planning Act, 1991 (Act No. 125 of 1991).

36. Municipality to give effect to integrated development plan

A municipality must give effect to its integrated development plan and conduct its affairs in a manner which is consistent with its integrated development plan.

37. Regulations and guidelines

(1)The Minister may for the purposes of this Chapter make regulations or issue guidelines in terms of section 120 to provide for or to regulate the following matters;

(a)incentives to ensure that municipalities adopt their integrated development plans within the applicable prescribed period, and comply with the provisions of this Act concerning the planning, drafting, adoption and review of those plans;

(b)the detail of integrated development plans taking into account the requirements of other applicable national legislation;

(c)criteria municipalities must take into account when planning, drafting, adopting or reviewing their integrated development plans;

(d)the detail of the process for the planning, drafting, adoption and review of integrated development plans;

(e)a process for the amendment of integrated development plans;

(f)the manner in which an objection must be referred to an ad hoc committee envisaged in section 33;

(g)the manner in which written evidence or documents must be submitted to an ad hoc committee;

(h)the proceedings of an ad hoc committee; and

(i)any other matter that may facilitate—

(i)integrated development planning and the drafting of integrated development plans; or

(ii)the application of this Chapter.

(2)When making regulations or issuing guidelines in terms of section 120 to provide for or to regulate the matters mentioned in subsection (1)(b), (c), (d) and (e) of this section, the Minister must—

(a)take into account the capacity of municipalities to comply with those matters; and

(b)differentiate between different kinds of municipalities according to their respective capacities.

(3)The Minister, by notice in the Gazette, may phase in the application of the provisions of this Chapter which place a financial or administrative burden on municipalities.

(4)A notice in terms of subsection (3) may—

(a)determine different dates on which different provisions of this Chapter becomes applicable to municipalities;

(b)apply to all municipalities generally;

(c)differentiate between different kinds of municipalities which may, for the purpose of the phasing in of the relevant provisions, be defined in the notice in relation to categories or types of municipalities or in any other way; or

(d)apply to a specific kind of municipality only, as defined in the notice.

Chapter 6
Performance management

38. Establishment of performance management system

A municipality must—

(a)establish a performance management system that is—

(i)commensurate with its resources;

(ii)best suited to its circumstances; and

(iii)in line with the priorities, objectives, indicators and targets contained in its integrated development plan;

(b)promote a culture of performance management among its political structures, political office bearers and councillors and in its administration; and

(c)administer its affairs in an economical, effective, efficient and accountable manner.

39. Development of performance management system

(a)manage the development of the municipality’s performance management system;

(b)assign responsibilities in this regard to the municipal manager; and

(c)submit the proposed system to the municipal council for adoption.

40. Monitoring and review of performance management system

A municipality must establish mechanisms to monitor and review its performance management system.

41. Core components

(1)A municipality must in terms of its performance management system and in accordance with any regulations and guidelines that may be prescribed—

(a)set appropriate key performance indicators as a yardstick for measuring performance, including outcomes and impact, with regard to the municipality’s development priorities and objectives set out in its integrated development plan;

(b)set measurable performance targets with regard to each of those development priorities and objectives;

(c)with regard to each of those development priorities and objectives and against the key performance indicators and targets set in terms of paragraphs (a) and (b)—

(i)monitor performance; and

(ii)measure and review performance at least once per year;

(d)take steps to improve performance with regard to those development priorities and objectives where performance targets are not met; and

(e)establish a process of regular reporting to—

(i)the council, other political structures, political office bearers and staff of the municipality; and

(ii)the public and appropriate organs of state.

(2)The system applied by a municipality in compliance with subsection (1)(c) must be devised in such a way that it may serve as an early warning indicator of under-performance.

42. Community involvement

A municipality, through appropriate mechanisms, processes and procedures established in terms of Chapter 4, must involve the local community in the development, implementation and review of the municipality’s performance, management system, and, in particular, allow the community to participate in the setting of appropriate key performance indicators and performance targets for the municipality.

43. General key performance indicators

(1)The Minister, after consultation with the MECs for local government and organised local government representing local government nationally, may—

(a)by regulation prescribe general key performance indicators that are appropriate and that can be applied to local government generally; and

(b)when necessary, review and adjust those general key performance indicators.

(2)Key performance indicators set by a municipality must include any general key performance indicators prescribed in terms of subsection (1), to the extent that these indicators are applicable to the municipality concerned.

44. Notification of key performance indicators and performance targets

A municipality, in a manner determined by its council, must make known, both internally and to the general public, the key performance indicators and performance targets set by it for purposes of its performance management system.

45. Audit of performance measurements

The results of performance measurements in terms of section 41(1)(c), this must be audited—

(a)as part of the municipality's internal auditing processes; and

(b)annually by the Auditor-General.

46. Annual performance reports

(1)Amunicipality must prepare for each financial year a performance report reflecting—

(a)the performance of the municipality and of each external service provider during that financial year;

(b)a comparison of the performances referred to in paragraph (a) with targets set for and performances in the previous financial year; and

(c)measures taken to improve performance.

(2)An annual performance report must form part of the municipality’s annual report in terms of Chapter 12 of the Municipal Finance Management Act.

[section 46 substituted by section 6 of Act 44 of 2003]

47. Reports by MEC

(1)The MEC for local government must annually compile and submit to the provincial legislatures and the Minister a consolidated report on the performance of municipalities in the province.

(2)The report must—

(a)identify municipalities that under-performed during the year;

(b)propose remedial action to be taken; and

(c)be published in the Provincial Gazette.

(3)The MEC for local government must submit a copy of the report to the National Council of Provinces.

48. Reports by Minister

(1)The Minister must annually compile and submit to Parliament and the MECS for local government a consolidated report of local government performance in terms of general key performance indicators.

(2)The report must be published in the Gazette.

49. Regulations and guidelines

(1)The Minister may for the purposes of this Chapter make regulations or issue guidelines in terms of section 120 to provide for or regulate—

(a)incentives to ensure that municipalities establish their performance management systems within the applicable prescribed period, and comply with the provisions of this Act concerning performance management systems;

(b)the setting of key performance indicators by a municipality with regard to its development objectives;

(c)the identification of appropriate general key performance indicators that can be applied to municipalities generally and that reflect the object and intent of section 23;

(d)the regular review by a municipality of its key performance indicators;

(e)the setting of a framework for performance targets by municipalities consistent with their development priorities, objectives and strategies set out in their integrated development plans;

(f)mechanisms, systems and processes for the monitoring and measurement of performance by a municipality with regard to its development objectives;

(g)the internal auditing of performance measurements;

(h)the assessment of those performance measurements by a municipality;

(i)the assessment of progress by a municipality with the implementation of its integrated development plan;

(j)the improvement of performance;

(k)any other matter that may facilitate—

(i)the implementation by municipalities of an efficient and effective system of performance management; or

(ii)the application of this Chapter.

(2)When making regulations or issuing guidelines in terms of section 120 to provide for or to regulate the matters mentioned in subsection (1) of this section, the Minister must—

(a)take into account the capacity of municipalities to comply with those matters; and

(b)differentiate between different kinds of municipalities according to their respective capacities.

(3)The Minister, by notice in the Gazette, may phase in the application of the provisions of this Chapter which place a financial or administrative burden on municipalities.

(4)A notice in terms of subsection (3) may—

(a)determine different dates on which different provisions of this Chapter becomes applicable to municipalities;

(b)apply to all municipalities generally;

(d)apply to a specific kind of municipality only, as defined in the notice.

Chapter 7
Local public administration and human resources

Part 1 – Basic principles

50. Basic values and principles governing local public administration

(1)Local public administration is governed by the democratic values and principles embodied in section 195(1) of the Constitution.

(2)In administering its affairs, a municipality must strive to achieve the objects of local government set out in section 152(1) of the Constitution, and comply with the duties set out in sections 4(2) and 6.

51. Organisation of administration

A municipality must within its administrative and financial capacity establish and organise its administration in a manner that would enable the municipality to—

(a)be responsive to the needs of the local community;

(b)facilitate a culture of public service and accountability amongst its staff;

(c)be performance orientated and focussed on the objects of local government set out in section 152 of the Constitution and its developmental duties as required by section 153 of the Constitution;

(d)ensure that its political structures, political office bearers and managers and other staff members align their roles and responsibilities with the priorities and objectives set out in the municipality’s integrated development plan;

(e)establish clear relationships, and facilitate co-operation, co-ordination and communication, between—

(i)its political structures and political office bearers and its administration;

(ii)its political structures, political office bearers and administration and the local community;

(f)organise its political structures, political office bearers and administration in a flexible way in order to respond to changing priorities and circumstances;

(g)perform its functions—

(i)through operationally effective and appropriate administrative units and mechanisms, including departments and other functional or business units; and

(ii)when necessary, on a decentralised basis;

(h)assign clear responsibilities for the management and co-ordination of these administrative units and mechanisms;

(i)hold the municipal manager accountable for the overall performance of the administration;

(j)maximise efficiency of communication and decision-making within the administration;

(k)delegate responsibility to the most effective level within the administration:

(l)involve staff in management decisions as far as is practicable; and

(m)provide an equitable, fair, open and non-discriminatory working environment.

52. Inconsistency with applicable labour legislation

In the event of any inconsistency between a provision of this Chapter, including the Code of Conduct referred to in section 69, or a regulation made for the purposes of this Chapter, and any applicable labour legislation, the labour legislation prevails.

Part 2 – Political structures, political office bearers and roles

53. Roles and responsibilities

(1)A municipality must, within the framework of and in accordance with relevant provisions of the Municipal Structures Act, this Act and other applicable legislation, define the specific role and area of responsibility of each political structure and political office bearer of the municipality and of the municipal manager.

(2)The respective roles and areas of responsibility of each political structure and political office bearer and of the municipal manager must—

(a)be defined in precise terms by way of separate terms of reference, in writing, for each political structure or political office bearer and the municipal manager; and

(b)be acknowledged and given effect to in the rules, procedures, instructions, policy statements and other written instruments of the municipality.

(3)instruments defining, acknowledging or giving effect to the roles and areas of responsibility of these political structures and political office bearers and the municipal manager must be appropriate to the category and type in which the municipality falls.

(4)Terms of reference mentioned in subsection (2)(a) may include the delegation of powers and duties to the relevant political structure or political office bearer or the municipal manager in terms of section 59.

(5)When defining the respective roles and areas of responsibility of each political structure and political office bearer and of the municipal manager, the municipality must determine—

(a)the relationships among those political structures and political office bearers and the municipal manager, and the manner in which they must interact;

(b)appropriate lines of accountability and reporting for those political structures and political office bearers and the municipal manager;

(c)mechanisms, processes and procedures for minimising cross-referrals and unnecessary overlapping of responsibilities between those political structures and political office bearers and the municipal manager;

(d)mechanisms, processes and procedures for resolving disputes between those political structures and political office bearers and the municipal manager; and

(e)mechanisms, processes and procedures for interaction, between—

(i)those political structures and political office bearers and the municipal manager and other staff members of the municipality; and

(ii)councillors and the municipal manager and other staff members of the municipality.

(6)If a municipality has a decentralised regional administration in any part of its area, the municipality must determine mechanisms, processes and procedures for interaction between the regional management of the municipality and—

(a)the ward councillor or other councillor responsible for that part of the municipality’s area;

(b)any subcouncil or ward committee, where applicable, in that part of the municipality’s area; and

(c)the local community in that part of the municipality’s area.

54. Appointment of municipal managers and acting municipal managers

(1)The municipal council must appoint—

(a)a municipal manager as head of the administration of the municipal council; or

(b)an acting municipal manager under circumstances and for a period as prescribed.

(2)A person appointed as municipal manager or acting municipal manager in terms of subsection (1) must at least have the skills, expertise, competencies and qualifications as prescribed.

(2A)

(a)A person appointed in terms of subsection (1)(b) may not be appointed to act for a period that exceeds three months.

(b)A municipal council may, in special circumstances and on good cause shown, apply in writing to the MEC for local government to extend the period of appointment contemplated in paragraph (a), for a further period that does not exceed three months.

(3)A decision to appoint a person as municipal manager, and any contract concluded between the municipal council and that person in consequence of the decision, is null and void if—

(a)the person appointed does not have the prescribed skills, expertise, competencies or qualifications; or

(b)the appointment was otherwise made in contravention of this Act.

(4)If the post of municipal manager becomes vacant, the municipal council must—

(a)advertise the post nationally to attract a pool of candidates nationwide; and

(b)select from the pool of candidates a suitable person who complies with the prescribed requirements for appointment to the post.

(5)The municipal council must re-advertise the post if there is no suitable candidate who complies with the prescribed requirements.

(6)

(a)The municipal council may request the MEC for local government to second a suitable person, on such conditions as prescribed, to act in the advertised position until such time as a suitable candidate has been appointed.

(b)If the MEC for local government has not seconded a suitable person within a period of 60 days after receipt of the request referred to in paragraph (a), the municipal council may request the Minister to second a suitable person, on such conditions as prescribed, until such time as a suitable candidate has been appointed.

(7)

(a)The municipal council must, within 14 days, inform the MEC for local government of the appointment process and outcome, as may be prescribed.

(b)The MEC for local government must, within 14 days of receipt of the information referred to in paragraph (a), submit a copy thereof to the Minister.

(8)If a person is appointed as municipal manager in contravention of this section, the MEC for local government must, within 14 days of receiving the information provided for in subsection (7), take appropriate steps to enforce compliance by the municipal council with this section, which may include an application to a court for a declaratory order on the validity of the appointment, or any other legal action against the municipal council.

(9)Where an MEC for local government fails to take appropriate steps referred to in subsection (8), the Minister may take the steps contemplated in that subsection.

(10)If the MEC for local government fails to respond to the appointment process and outcome within the timeframes, as contemplated in subsection (8), or the Minister fails to respond as contemplated in subsection (9), the appointment of the municipal manager or acting municipal manager will be deemed to be in compliance with this Act: Provided the municipal council submitted all relevant documents, as prescribed.

(11)A municipal council may, in special circumstances and on good cause shown, apply in writing to the Minister to waive any of the requirements listed in subsection (2) if it is unable to attract suitable candidates.

(12)A person who has been appointed as acting municipal manager before this section took effect, must be regarded as having been appointed in accordance with this section for the period of the acting appointment.

(13)Any pending legal or disciplinary action in connection with an appointment made before this section took effect, will not be affected by this section after it took effect.

[section 54 repealed by section 37 of Act 3 of 2021 and substituted by section 2 of Act 3 of 2022]

54A. Appointment of municipal managers and acting municipal managers