The execution of the Social Compacts, which will also ensure good local administration and the implementation of regional initiatives targeted at developing townships and rural economies, has been authorized by the KwaZulu-Natal Provincial Executive Council.
Following the ordinary meeting of the Provincial Executive Council, KwaZulu-Natal Premier Sihle Zikalala briefed the media and announced that the Social Compacts would now be implemented in all of KwaZulu-districts Natal’s as a result of work done by the Department of Cooperative Governance and Traditional Leaders and the KZN Economic Council.
According to Zikalala, the Social Compacts are made to bring partners and stakeholders together to develop innovative, worker-friendly solutions that would assist the province’s economy recover after the floods and COVID-19 pandemic.
“The Social Compacts are designed to foster an atmosphere where business, labor, and civil society can build the economy and create jobs.
The implementation of the Social Compact in districts will result in firm promises from business, the government, and stakeholders regarding the attraction of investment and the creation of jobs at the local level, according to Zikalala.
Extended definition of Social Cohesion and Moral Regeneration
The appointment of SCMRC Champions and the extension of the Social Cohesion and Moral Regeneration Council (SCMRC) of KwaZulu-term Natal’s have also received approval from the Executive Council.
In order to strengthen social cohesion, moral regeneration, and nation building in KwaZulu-Natal, the SCMR was established to provide coordination, alignment, consultation, and information sharing mechanisms.
All of the Provincial Executive Council members, metro and district mayors, labor, business, and women’s representatives, as well as representatives of the Faith-Based Community (FBO), are all included on the Council as equal partners within the framework of good and participatory governance principles.
According to Zikalala, the current membership’s three-year term with the Premier and a member of civil society serving as co-chairpersons ended in July 2021.
Increased Mkhanyakude District Municipality intervention
As a result of the municipality’s ongoing problems, the Executive Council has decided to increase the involvement in uMkhanyakude District.
According to Zikalala, the Provincial Executive Council has received reports on the situation in the uMkhanyakude District Municipality, the most recent of which noted that the municipality’s 2022–2023 budget and Integrated Development Plan were not approved (IDP).
He emphasized that, in accordance with section 139(4)(b) of the Constitution, failure to adopt the budget necessitates an obligatory provincial intervention.
“The Executive Council believes that the repercussions of failing to accept the budget are severe and may compromise the community’s well-being by causing the municipality’s financial collapse.
Due to the disruption of council meetings, council has been unable to carry out important executive duties.
“In order to restore stability and good governance to uMkhanyakude District Municipality, the Provincial Executive Council has resolved to augment the terms of reference of the Ministerial Representative and added more powers, which will now be assumed by the Provincial Executive Council,” Zikalala said.
According to section 139(4)(b) of the Constitution, the Executive Council has granted the Finance MEC authority to adopt the interim budget and any related revenue-raising initiatives.
“The Executive Council approves that the MEC for Finance delegate to the current Ministerial Representative under the existing Section 139(1)(b) intervention the responsibility to approve funds for the requirements of the municipality to be withdrawn from the municipality’s bank accounts until such time as the municipal budget for the 2022/2023 financial year is approved in accordance with section 24 of the MFMA.
As stated in Section 82 of the Municipal Structures Act, “this includes powers to appoint the municipal manager, including the acting municipal manager, and senior managers (including acting senior managers) reporting directly to the municipal manager as stated in the Municipal Systems Act or any other legal framework.”
The IDP for 2022/2023, the budget for the fiscal year 2022/2023 beginning on July 1, and the failure to take into account investigations relating to unauthorized, irregular, fruitless, and wasteful expenditure in accordance with Section 32 of the Municipal Finance Management Act are the main reasons for the intervention (MFMA).
Additionally, the district did not name top management, the Audit Committee, or the Disciplinary Board.