Minister Marius Fransman - The Recovery Plan to be Implemented by the Kannaland Municipality

My department and I compiled a comprehensive Recovery Plan for the Kannaland Municipality with due regard to the findings and recommendations of the Report of the Investigating Committee and other available information such as audits. This Recovery Plan will ensure that the Kannaland Municipality is on the road to immediate recovery in order to secure its administrative and financial well being. There is a need for an immediate intervention strategy that will ensure that services to the poor are delivered

As part of immediate intervention I have conveyed my written instructions to all members of the Kannaland Municipality in terms of appropriate legislation. Last week, I also had discussions with the Eden Municipality regarding the provision of administrative and technical assistance to the Kannaland Municipality during the recovery process.

I instructed the Speaker of the Municipality to convene a special Council meeting yesterday. I welcome the decision taken by the Council to accept my instructions including the Recovery Plan.

The Recovery Plan has the following points:

• The Speaker of the Council must investigate allegations contained in the Report against the mayor, Deputy Mayor and one of the councilors.
• All the members must until further notice execute the powers and functions of Council jointly. To attain this all delegations to the Executive Mayor as well as delegations to the Executive Mayor acting with the Mayoral Committee must be withdrawn. The buy-in and co-operation of every member of Council in the implementation of the Recovery Plan is essential in the recovery process
• The Council in its capacity, as the employer must, with due cognisance of applicable labour legislation and sound labour practices, institute disciplinary action against five senior officials indicated in the Report. WECLOGO as the employer organisation, must be requested to assist the municipality in this matter.
• Council must mandate the current management support service provider, Zader Municipal Services, to implement the actions plans with specific reference to structures and systems. My Department secured funding to the amount of R3, 367m through the conditional Local Government Capacity Building Grant to implement the recovery plan.
• Where funds have been misappropriated, it must be recovered. A forensic audit has to be conducted to address those areas where mismanagement of funds occurred and the extent of such mismanagement is to be determined.
• The attention of Council has been withdrawn to the provision of the Protected Disclosures Act, 2 000 (Act 26 of 2 000) with regard to the necessary protection of employees who made a disclosure during the public hearings before the Investigating Committee. Any such employee may not in any way be prejudiced or subjected to any occupational detriment by the Council or any official of the Municipality.
• All my instructions are accompanied by due dates for finalisation. It furthermore deals with structures and systems, the streamlining of the staff structure, the compilation and implementation of policies, procedures and by-laws on a range of subjects. Matters such as proper cash management and budgetary control are also included. The objective of the instructions being put to the Municipality on the road to recovery and secure its administrative and financial well being
• A Steering Committee must be appointed by Council to oversee and strictly monitor the Recovery Process. Amongst others, my Department and Provincial Treasury will serve on the committee which will meet at least monthly

The Kannaland Municipality has been embroiled in arguments and actions that have been detrimental to service delivery to the poor. We have seen serious management and systematic problems in the Kannaland Municipality which have contributed to poor service delivery to the poor people of that area. This municipality, like all our municipalities in the Western Cape, has the responsibility to those in greatest need to ensure they have access to the social safety net. This include access to water, sanitation, solid waste management, affordable and safe energy, transport, education, health services and shelter as well as effective disaster management which act together in strengthening the ability of the poor to manager shocks and stresses and to gain access to a better life.

To ensure an effective service delivery to our people there is a need for sound co-operative governance between all spheres of government. I have committed myself to capacitate weak municipalities by providing training to senior and middle management to develop leadership in governance in this province. Kannaland Municpality is one of eight in this province to which my department will provide Management Support Programmes this financial year.

I call on the Steering Committee to look at the socio-economic conditions of Kannaland and to come up with for an economic revival of the area. I also call on the community of Kannaland and other stakeholders associated with this Municipality to support my instructions, as this will be in the best interest of all particularly good governance and service delivery to the poor.

The Report of the Investigating Committee is available on the Cape Gateway website at www.westerncape.gov.za/eng/publications/reports_research/S/75485 (English version) and
www.westerncape.gov.za/afr/publications/reports_research/A/75485 (Afrikaans version)

Enquiries: Eric