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1 Practitioner s Guide toIntergovernmental Relations in South AfricaPractitioner s Guide toIntergovernmental Relations in South AfricaPractitioner s Guide toIntergovernmental Relations in South AfricaAcknowledgementsCo-operative government and intergovernmental relations are laden concepts that may be explained within a particu-lar governance system of a country. Within the South African context, the Constitution provides a framework within which cooperative government and intergovernmental relations are outlined. The publication is not a legal instrument but a document towards consolidating the concept of intergovernmental system as experienced in the South African governance context. This project was made possible by the funding of the Consolidation of Municipal Transformation Programme (CMTP) supported by the Department for International Development (UK-DFID). The Department of Provincial and Local Government (dplg) would like to thank:The Honourable minister for Provincial and Local Government, Mr Sydney Mufamadi and Dr.

2 Jaap de VisserEditing: EISAL ayout and Design: : Global Print PRACTITIONER S GUIDE TO THE INTERGOVERNMENTAL RELATIONS SYSTEM IN SOUTH AFRICAF oreword by the MinisterGovernment in a democratic South Africa exists to serve the citizens of South Africa. And since effective delivery of service requires effective government, the workings of the three spheres of government in South Africa national, provincial and local government is vital to government s success or failure. The integrated system of operation between national, provincial and local government is referred to as intergovernmental relations (IGR), and it is the practical functioning of IGR that forms the subject of this governments are created by the people, for the people, through democratic and universal suffrage, the people need to understand the challenges and the opportunities that government faces. This is to encourage constructive debate and support the levels of meaningful public par-ticipation at every level that is at the centre of a successful democracy.

3 And since IGR practitio-ners are not drawn from special elites, but from the ordinary citizens of this country, they must have a clear and concise understanding of how IGR works in South Africa on a practical basis in an accessible, understandable is both the spirit and the intention of this Practitioners Guide to Intergovernmental Rela-tions in South Africa. This publication is a service to all practitioners in government, academia and the civil society regardless of their experience or newness to the field. In order to understand and appreciate how the IGR system works in South Africa, it is thus also intended for all those interested in this subject, as an induction or basic guide. It is dedicated to the achievement of the highest ideals of government in South Africa, by the Department of Provincial and Local Government (the dplg) and our donor on this project, the United Kingdom s Department for International S MufamadiMinister for Provincial and Local Government PRACTITIONER S GUIDE TO THE INTERGOVERNMENTAL RELATIONS SYSTEM IN SOUTH AFRICA PRACTITIONER S GUIDE TO THE INTERGOVERNMENTAL RELATIONS SYSTEM IN SOUTH AFRICAHow to use this guideThe system of Intergovernmental Relations (IGR) in South Africa is a revolutionary break with our divided past and one of the most interesting tasks in government for the IGR practitioner.

4 Embed-ded in the IGR system is an impetus towards development rather than bureaucracy, a dedication to efficiency and performance monitoring rather than just following the rules, and a system of government that is unique in its comprehensive pursuit of a better life for all .The South African IGR system is based on the Constitution of 1996 and differs so much from the norm, that it is attracting worldwide attention as an example to be emulated. The IGR system is a living, flexible and vital agent of delivery of services to the population . Local government is treated as a distinct and respected sphere of government in its own right, instead of merely being an administrative arm of national government. This means that anyone who wants to understand democratic South Africa has to understand how IGR works and to grasp the ideals and vision that guides it. The Practitioners Guide should provide Ministers, Members of Executive Committees, Mayors, Councillors, officials at all three spheres of government, communities and other stakeholders with a first point of reference in familiarising themselves with their responsibilities and roles in the IGR Practitioners Guide provides a practical guide that highlights the main elements of IGR as it is practiced in South Africa.

5 Because the IGR system in South Africa is flexible and still a work in progress , new programmes, policies and institutions are constantly emerging. In this publication, we have provided a snapshot of IGR as it appears now, in 2007. It will continue to be updated as the IGR system Practitioner s Guide provides readers with a thorough understanding of the intent of the intergovernmental relations legislation, its working, policies, practices and the cross cutting im-plications of the Practitioners Guide does not provide chapter and verse on every legal detail of IGR. For more detailed information, Practitioners will have to consult more detailed specialised texts. Internationally, IGR is a flourishing field of study, and within South Africa a rapidly growing lit-erature is emerging on all aspects of the topic. In the text of the Practitioner s Guide, suggestions regarding useful web-based resources are provided. vPRACTITIONER S GUIDE TO THE INTERGOVERNMENTAL RELATIONS SYSTEM IN SOUTH AFRICA List of abbreviationsCMIP Consolidated Municipal Infrastructure ProgrammeDG Director-GeneralDIF District Intergovernmental Forumdplg Department of Provincial and Local GovernmentEPWP Expanded Public Works ProgrammeFFC Financial and Fiscal CommissionFOSAD Forum of South African Directors-GeneralGDP Gross Domestic ProductIDP Integrated Development PlanningIEC Independent Electoral CommissionIGR Intergovernmental RelationsIRFA Intergovernmental Relations Framework ActISRDP Integrated Sustainable Rural Development ProgrammeIYM In-year Monitoring KPI Key Performance IndicatorLEDF Local Economic Development Fund MEC Member of Provincial Executive CouncilMFMA Municipal Finance Management ActMIG Municipal Infrastructure GrantMinmec A standing IGR body of a minister and MECsMTBPS Medium Term Budget Policy Statement (MTBS)

6 MTEF Medium-Term Expenditure FrameworkMTSF Medium-Term Strategy Framework NCOP National Council of ProvincesNGO Non-governmental OrganisationNSDP National Spatial Development ProgrammePCC President s Coordinating CouncilPGDS Provincial Growth and Development StrategyPIF Provincial Intergovernmental ForumPoA Plan of ActionSALGA South African Local Government AuthoritySDBIP Service Delivery and Budget Implementation PlanURP Urban Renewal ProgrammeWSCF Water Service Capital Fund vPRACTITIONER S GUIDE TO THE INTERGOVERNMENTAL RELATIONS SYSTEM IN SOUTH AFRICAC ontentsForeword by the minister ..iHow to use this guide ..iiiList of abbreviations ..ivChapter 1: Intergovernmental Relations in South Africa: An introduction .. Introduction .. Background to IGR .. Developmental state .. The three spheres in brief .. National government .. Provincial government .. Local government .. Three central themes: Distinctive, interdependent and interrelated .. Distinctive.

7 Interrelated .. Interdependent .. The actors in IGR .. Key IGR institutions ..7 Chapter 2: Distinctiveness - the autonomy of the three spheres ..11 Introduction .. Powers are never unfettered .. Powers and functions of the three spheres .. Authority of national Authority of provincial governments .. Authority of local Division of powers between district and local municipalities .. Dealing with overlap and concurrency of powers .. Both national and provincial governments have authority over Schedule 4 matters: how are conflicts resolved? ..21 v PRACTITIONER S GUIDE TO THE INTERGOVERNMENTAL RELATIONS SYSTEM IN SOUTH Schedule 5 matters are exclusive provincial matters but sometimes national government may make law on those matters: when is this permitted? .. National, provincial and local governments all three have authority over Schedule 4B matters: who is responsible for what? .. Both provincial and local governments have authority over Schedule 5B matters: who is responsible for what?

8 23 The terms used in Schedules 4 and 5 often do not give clarity or cause confusion: how to resolve this confusion?.. Transferring powers and functions to provinces and local governments .. Introduction .. Difference between delegation and Who can assign? .. Financial implications of assignments to local government .. Assignment powers of legislatures .. Assignment of powers of the executives .. Subsidiarity ..31 Chapter 3: Interrelatedness - Supervision over provincial and local government ..333. Introduction: monitoring, support and intervention .. Monitoring .. Support .. Intervention .. Monitoring of local government .. Monitoring in terms of the Municipal Systems Act .. Monitoring in terms of the Municipal Finance Management Act .. Monitoring in terms of sector Support .. Support programmes for local government .. Intervention .. Introduction .. Regular interventions into local government.

9 Financial interventions into local government ..44 v PRACTITIONER S GUIDE TO THE INTERGOVERNMENTAL RELATIONS SYSTEM IN SOUTH General financial problems .. Inability to approve a budget .. Intervening in a municipality due to a crisis in financial affairs .. National intervention into local government .. Conclusion ..49 Chapter 4: Interdependent - Co-operation between spheres of government .. Introduction .. Intergovernmental Relations Framework Act: an introduction .. Intergovernmental planning and budgeting .. Provincial Growth and Development Strategy (PGDS).. Integrated Development Plans (IDPs): .. National Spatial Development Perspective (NSDP) .. Cluster system at national and provincial government .. Budget cycle .. Intergovernmental Forums .. Introduction .. Role of the IRFA .. Internal rules for IGR President s Co-ordinating Council (PCC) .. MinMECs .. Budget Council .. Local Government Budget Forum .. Premiers Intergovernmental Forums (PIF).

10 District Intergovernmental Forums .. Overview of key IGR structures in terms of IRFA .. Technical support structures .. Implementation protocols .. Introduction: why implementation protocols?.. Object .. Scenarios where a protocol must be considered .. Preparing and initiating ..73 v PRACTITIONER S GUIDE TO THE INTERGOVERNMENTAL RELATIONS SYSTEM IN SOUTH Minimum content .. IGR Disputes .. Introduction .. What is an IGR conflict? .. Dispute settlement ..78 Chapter 5: Intergovernmental Finances .. Introduction .. Own revenue .. Intergovernmental allocations .. Provincial Government .. Own revenue .. Allocations to provincial government .. Local government .. Own revenue .. Allocations to local government .. Borrowing .. Agency payments ..95 List of cases referred to ..96 CHAPTER 1 INTERGOVERNMENTAL RELATIONS IN SOUTH AFRICA: AN INTRODUCTIONPRACTITIONER S GUIDE TO THE INTERGOVERNMENTAL RELATIONS SYSTEM IN SOUTH AFRICAI ntergovernmental Relations in South Africa: An IntroductionIntergovernmental Relations is about relations between different governments or between organs of state from different governments about the conduct of their its most basic level, intergovernmental relations is about the relationships between the three spheres of government national, provincial and local government and how these can be made to work together for the good of the country as a whole.