1. MUNICIPAL PUBLIC ACCOUNTS COMMITTEES (MPACS) CONFERENCE ON LOCAL GOVERNMENT LAW NELSON MANDELA METROPLOLITAN UNIVERSITY 19 – 20 NOVEMBER 20102 SERAJ JOHAAR

2. INTRODUCTION NT GUIDELINE in August 2011 encouraging municipalities to establish MPAC’s MPAC must exercise oversight over the executive obligations of municipalities Promote accountable, transparent, democratic local government and efficient use of resources Seen as an intervention to achieve Operation Clean Audit 2014 LG characterized by weak oversight. Critical question: Is MPAC different from other interventions since 2000?

3. NT TREASURY GUIDELINES Ss129(4) read 168(1) MFMA empowers Minister to issue guidelines on how councils consider annual reports and the composition of public accounts / oversight committees Guidelines are non-binding – Section 129(5) No legal obligation to establish MPACS No legal obligation to appoint chairperson from opposition party Not practical to have councillors exclusively dedicated to MPAC duties

4. Accountability / Oversight Chain MUNICIPAL COUNCIL MM & S56 MANAGERS VOTERS EXEC MAYOR & MMC’S EXEC MAYOR & MMC’S Adapted from Murray & Nijzink, 2002 MPAC

5. CHALLENGES The accountability relationship is made possible because of the clear separation between the executive and the legislative authority – a core feature of democratic systems of government (Hedger & Blick, 2008:2) No separation at local level but the accountability / oversight relationship critical (Structural). Relationship between Speaker and Mayor How do we ensure that we develop from opposition politics to institutional (Council) oversight? How does the administration assist Council to effectively exercise oversight over themselves? Resources

6. WHAT DID THE MUNICIPALITIES SAY MUNICIPAL CONCERNS X A Guideline is not Obligatory X We are doing what must be done X Increase Costs X Duplication X What about small Councils X Admin Capacity X Capacity of Councillors PROVINCIAL RESPONSE Oversight is of critical importance Change name of Oversight Com/ Amend TOR If more meetings costs insignificant We continue doing what we doing Each council decides If have IA it should be their job All role-players to assist

7. Status at 7 August 2012 32 / 82% municipalities established MPACS 100 % in North-West, Limpopo, Eastern Cape, Gauteng, KZN & Mpumalanga Free State no MPACS but committed to establish all by end September 2012 Western Cape 12/30 MPACS as at end September 2012

8. Responsibilities of MPAC FinancialOther Criticcal Oversight Roles Unforeseen and unavoidable expenditure Appointments & Disciplinary Matters Unauthorised, irregular or fruitless expenditure Performance Reports Recovery and writing off of expenditure Human Resource Monthly budget statementsUse of Resources / Value for Money Implementation Budget / SDBIP Annual Report / Oversight report Audit Committee AG Findings

9. DELEGATIONS Consider and make recommendations on all Financial, Performance, Audit, information and Reports Request any information / documents from the Executive and Administration. Chairpersons requests the information from the Municipal Manager Request any member of the executive and administration to appear before the committee Authority to obtain expert legal / technical advice Separate budget to the Committee

10. REPORTING S56(1) Structures Act Abused Mayors not entitled to all reports (Oversight, Disciplinary Committee) Interpretation of s56(1) should be based on whether powers are delegatable or not. S56(1) Structures Act An Executive Mayor is entitled to receive reports from committees of the municipal council and to forward these reports together with a recommendation to the council when the matter cannot be disposed of by the executive mayor in terms of the executive mayor’s delegated powers.

11. CONCLUSIONS MPAC has the potential to improve oversight but even a bigger potential to be a failure SALGA Training and APAC Training very good but not nearly enough. Practical oversight experience and handholding required. Municipal Managers, Provincial Governments, SALGA, Auditor- General, National & Provincial Members, all have critical roles to play in assisting MPACS

12. Thank you