Municipal Peformance Management System a tool for good governance

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Municipal Peformance Management System a tool
for good governance 11-13 August 2005, BFN
Senior Management Conference
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Outline of the Presentation

• Background
• Legislative and Policy Framework
• PMS as a tool for good governance
• Challenges in implementing PMS and
• Way Forward.

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Background

• Government reform initiatives in the past two
  decades to enhance capacity to provide efficient
  and effective services to communities- PMS at the
  centre of these initiatives
• PMS is a process whereby municipalities
  continously seek to improve their functioning and
  accountability. It is a tool that empowers local
  government to realise development goals and
  thereby meet the basic needs of citizens and
  promote socio-economic development

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Background cont

• Inherited a fragmented system of local government
  organised along racial lines skewed
  distribution of resources, inequitable service,
  massive infrastructural service backlogs
• Civic protest and collapse of Black Local
  Authorities.
• Establishment of Local Government Negotiating
  Forum for negotiating the dissolution of
  Apartheid local government structures
• Three phased local government transformation
  process mapped out pre interim, interim and
  final phase

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Background cont

• Pre-interim phase establishment of negotiation
  forums and interims structures formalised by LGTA
  (1993)
• Interim- phase testing the effectiveness of
  elected transitional councils, passage of new
  policy framework on local government White
  Paper, Municipal Structures Act (98)
• Final phase- ushered by December, 5 local
  government election expectations attainment of
  developmental mandates, providing services,
  socio-economic development

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Background cont

• Establishment / stabilisation phase - Dec 2000
  Dec 2002 establishment of interim and long-term
  frameworks, structures, systems in terms of
  applicable legislation
• Consolidation Phase 2002 2005 implementing
  new systems of local government - planning, PMS,
  sound administration, effective service delivery
  strategies
• Sustainability phase 2005 onwards that place
  emphases on supporting municipalities

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Legislative and Policy Framework

• The Constitution of the Republic-1996 provide
  democratic and accountable government for local
  communities
• Batho Pele White Paper (1997) articulate eight
  Batho Pele principles
• White Paper on Local Government outlines a
  developmental local government vision and
  identifies three tools viz IDPs, PMS and
  community involvement
• Municipal Demarcation Act- re-demarcates
  municipal boundaries and rationalise 843
  municipalities into 284 larger and possibly
  economically viable entities

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Legislative and Policy Framework..cont

• Municipal Structures Act defines powers and
  function for local government and obligate
  municipalities in performing their duties to
• develop criteria in term of which progress in the
  implementation of strategies can be evaluated
• Review the performance of the municipality in
  order to improve the economy, efficiency and
  effectiveness of the municipality
• Municipal Systems Act deals with internal
  working of the municipality, the way they plan
  and utilise resources, monitor and measure their
  performance, deliver services and manage their
  finances and revenue

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Legislative and Policy Framework..cont

• Municipal Finance Management Act evolve a sound
  and sustainable management of financial affairs
  of municipalities and entities.It introduces
  reporting regimen that contribute toward PM
• A monthly budget statement prepared by the
  Accounting Office reflecting the state of the
  municipal budget
• Mid-year budget and performance assessment report
  ( looking at set delivery targets and performance
  indicators, and
• Obligate municipalities to place information on
  their websites- budget related docs, annual
  report, all performance agreements, all long term
  borrowing contracts, all supply chain management
  contracts
• This takes the quest for transparent and
  accountable local government to the next level

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PMS a tool for good governance and accountability

• Central to any PMS is the development of
  performance indicators and measurable targets for
  developmental projects
• Communities with published information on
  performance indicators and measurable targets
  will enable them to know and compare set targets
  against performance reported
• Information from national and provincial PMS
  reports will enable communities to compare
  performance of their munis against others. If
  performance is not satisfactory they will exert
  pressure on their municipalities to improve

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PMS a tool for good governance and
accountability.cont

• Establishment of Ward Committees as an
  institutional mechanisms to involve communities
  in municipal affairs as provided for in the
  Municipal Structures Act
• Mentioned national and provincial PMS reports
  will document best practices that cover municipal
  core processes including good governance and
  accountability processes
• Pressure exerted by communities will compel
  municipalities to review and improve their
  internal systems for improving performance- Other
  service delivery options will be explored,
  municipal to municipal partnership
• Review of service delivery will generate
  information that would provide a case on the
  effectiveness and ineffectiveness of the current
  service delivery mechanisms

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PMS a tool for good governance and
accountability.cont

• PMS obligates municipalities to work with
  communities and involve them in planning, setting
  KPIs and targets, measuring, reviewing and
  reporting on performance. This will enable
  communities to hold municipalities accountable
• Planning processes, development priorities and
  objectives set by municipalities would be
  subjected to public scrutiny

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Challenges

• Instilling Performance Management Culture is a
  complex and arduous process
• Lack of dedicated and knowledgeable personnel
  to co-ordinate the implementation of PMS
• Outdated planning information
• Dedicated support from provincial and national
  government department

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Way Forward

• Visionary leadership (a champion) articulate the
  purpose of the organisation, reward and reinforce
  appropriate behaviour
• A unit assigned the responsibility of
  co-ordinating the implementation of PMS
• Openness and commitment for critical reflection,
  learning from experience and continuous
  improvement
• Build internal capacity and support for PMS
• Create a work environment that provide pressure
  and incentive for PMS
• Partnering with STATSSA in ensuring availability
  of updated planning information

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Way Forwardcont

• Community involvement is absolutely critical
• Implementation of PLMS require time, efforts and
  resources but is a worthy investment

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Thank YouDankieKe a leboha