In this Act, unless inconsistent with the context-

"basic municipal services" means a municipal service that is necessary m ensure an acceptable and reasonable quality of life and, if not provided, would endanger public health or safety or the environment;

"by-law" means legislation passed by the council of a municipality binding in the municipality on the persons to whom it applies;

"category" in relation to municipalities, means a category A, B or C municipality envisaged in section 155(1) of the Constitution;

"citizen" means a citizen of the Republic as envisaged in section 3 of the Constitution;

"Code of Conduct" in relation to-

1. a councillor, means the Code of Conduct set out in Schedule 1; and
2. a staff member of a municipality, means the Code of Conduct set out in Schedule 2;

"councillor" means a member of a municipal council;

"delegating authority"-

1. in relation to a delegation of a power or duty by a municipal council, means the municipal council;or
2. in relation to a subdelegation of a power or duty by another political structure, or by a political office bearer, councillor or staff member of a municipality, means that political structure, political office bearer, councillor or staff member;

"delegation" n relation to a duty, includes an instruction to perform the duty and
"delegate" has a corresponding meaning;

"development" means sustainable development. and includes integrated social, economic, environmental, spatial, infrastructural, institutional, organisational and human resources upliftment of a community aimed at-

1. improving the quality of life of its members with specific reference to the poor and other disadvantaged sections of the community; and
2. ensuring that development serves present and future generations;

"district municipality" means a category C municipality envisaged in section 155(1)(c) of the Constitution;

"environmentally sustainable" in relation to the provision of a municipal service, means the provision of a municipal service in a manner aimed at ensuring that-

1. the risk of harm to the environment and to human health and safety is minimised to the extent reasonably possible under the circumstances;
2. the potential benefits to the environment and to human health and safety are maximised to the extent reasonably possible under the circumstances; and
3. legislation intended to protect the environment and human health and safety is complied with;

"executive authority" in relation to a municipality, means the municipality's executive authority envisaged in section 156 of the Constitution. read with section 11 of this Act;

"financially sustainable" in relation to the provision of a municipal service, means the provision of a municipal service in a manner aimed at ensuring that the financing of that service from internal and external sources, including budgeted income, grants and subsidies for the service, is sufficient [o cover the costs of-

1. the initial capital expenditure required for the service;
2. operating the service; and
3. maintaining, repairing and replacing the physical assets used in the provision of the service;

"integrated development plan" means a plan envisaged in section 25;

"labour legislation" includes collective agreements in terms of the Labour Relations Act. 1995 (Act No. 66 of 1995);

"local community" or "community" in relation to a municipality. means that body of persons comprising-

1. the residents of the municipality;
2. the ratepayers of the municipality;
3. any civic organisations and non-governmental, private sector or labour organisations or bodies which are involved in local affairs within the municipality; and
4. visitors and other people residing outside the municipality who, because of their presence in the municipality. make use of services or facilities provided by the municipality, and includes, more specifically, the poor and other disadvantaged sections of such body of persons;

"local municipality" means a category B municipality envisaged in section 155(1)(h) of the Constitution;

"MEC" means a member of a provincial Executive Council;

"MEC for local government" means the MEC responsible for local government in a province;

"Minister" means the national Minister responsible for local government;

"municipal council" or council" means a municipal council referred to in section 157(1) of the Constitution;

"municipal entity"

1. a company, co-operative trust, fund or any other corporate entity established in terms of any applicable national or provincial legislation and which operates under the ownership control of one or more municipalities, and includes, in the case of a company under such ownership control, any subsidiary of that company; or
2. a service utility

"municipality" when referred to as-

1. an entity, means a municipality as described in section 2; and
2. a geographic area. means a municipal area determined in terms of the Local Government: Municipal Demarcation Act, 1998 (Act No. 27 of 1998);

"municipal manager" means a person appointed in terms of section 82 of the Municipal Structures Act;

"Municipal Structures Act" means the Local Government: Municipal Structures Act, 1998 (Act No. 117 of 1998);

"national organ of state" means an organ of state functioning within the national sphere of government;

"organised local government" means an organisation recognised in terms of section 2 (1) of the Organised Local Government Act, 1997 (Act No. 52 of 1997), to represent local government nationally or provincially;

"organ of state" means an organ of state as defined in section 239 of the Constitution;

"ownership control" in relation to a company. co-operative, trust, fund or any other corporate entity established in terms of any applicable national or provincial legislation, means the ability to exercise any of the following powers to govern the financial and operating policies of the entity in order to obtain benefits from its activities;

1. To appoint or remove at least the majority of the board of directors or equivalent governing body;
2. to appoint or remove that entity’s chief executive officer;
3. to cast at least the majority of the votes at meetings of the board of directors or equivalent governing body: or
4. to control at least the majority of the voting rights at a general meeting in the case of a company, co-operative or other body having members;

"political office bearer" means the speaker. executive mayor, mayor, deputy mayor or a member of the executive committee as referred to in the Municipal Structures Act;

"political structure" in relation to a municipality means the council of the municipality or any committee or other collective structure of a municipality elected, designated or appointed in terms of a specific provision of the Municipal Structures Act;

"prescribe" means prescribe by regulation or guidelines in terms of section 120, and "prescribed" has a corresponding meaning;

"Provincial Gazette" means the official gazette of the province concerned;

"provincial organ of state" means an organ of state functioning within the provincial sphere of government;

"ratepayer" in relation to a municipality. means a person who is liable to the municipality for the payment of-

1. rates on property in the municipality;
2. any other tax, duty or levy imposed by the municipality; or
3. fees for services provided either by the municipality or in terms of a service delivery agreement;

"resident" in relation to a municipality, means a person who is ordinarily resident in the municipality;

"service authority" means the power of a municipality to regulate the provision of a municipal service by a service provider;

"service delivery agreement" means an agreement between a municipality and an institution or person mentioned in section 76(b) in terms of which a municipal service is provided by that institution or person, either for its own account or on behalf of the municipality;

"service provider" means a person or institution or any combination of persons and institutions which provide a municipal service;

"service utility" means a municipal entity established in terms of section 82(1)(c);

"staff" in relation to a municipality, means the employees of the municipality, including the municipal manager;

"this Act" includes any regulations made in terms of section 120;

"type" in relation to municipalities, means a type of municipality envisaged in section 155(2) of the Constitution, and defined in Part 2 of Chapter 1 of the Municipal Structures Act.

A municipality-

1. is an organ of state within the local sphere of government exercising legislative and executive authority within an area determined in terms of the Local Government: Municipal Demarcation Act, 1998;
2. consists of-
   
   1. the political structures and administration of the municipality; and
   2. the community of the municipality;
3. functions in its area in accordance with the political, statutory and other relationships between its political structures, political office bearers and administration and its community; and
4. has a separate legal personality which excludes liability on the part of its community for the actions of the municipality.

1. Municipalities must exercise their executive and legislative authority within the constitutional system of co-operative government envisaged in section 41 of the Constitution.
2. The national and provincial spheres of government must, within the constitutional system of co-operative government envisaged in section 41 of the Constitution, exercise their executive and legislative authority in a manner that does not compromise or impede a municipality's ability or right to exercise its executive and legislative authority.
3. For the purpose of effective co-operative government, organised local government must seek to-
   
   1. develop common approaches for local government as a distinct sphere of government;
   2. enhance co-operation. mutual assistance and sharing of resources among municipalities;
   3. find solutions for problems relating to local government generally; and
   4. facilitate compliance with the principles of co-operative government and intergovernmental relations.

1. The council of a municipality has the right to-
   
   1. govern on its own initiative the local government affairs of the local community;
   2. exercise the municipality's executive and legislative authority, and to do so without improper interference; and
   3. finance the affairs of the municipality by-
      
      1. charging fees for services; and
      2. imposing surcharges on fees, rates on property and, to the extent authorised by national legislation. other taxes, levies and duties.
2. The council of a municipality, within the municipality's financial and administrative capacity and having regard to practical considerations, has the duty to-
   
   1. exercise the municipality's executive and legislative authority and use the resources of the municipality in the best interests of the local community;
   2. provide, without favour or prejudice, democratic and accountable government;
   3. encourage the involvement of the local community;
   4. strive to ensure that municipal services are provided to the local community in a financially and environmentally sustainable manner;
   5. consult the local community about-
      
      1. the level, quality, range and impact of municipal services provided by the municipality, either directly or through another service provider; and
      2. the available options for service delivery;
   6. give members of the local community equitable access to the municipal services to which they are entitled;
   7. promote and undertake development in the municipality;
   8. promote gender equity in the exercise of the municipality's executive and legislative authority;
   9. promote a safe and healthy environment in the municipality; and
   10. contribute, together with other organs of state, to the progressive realisation of the fundamental rights contained in sections 24, 25, 26, 27 and 29 of the Constitution.
3. A municipality must in the exercise of its executive and legislative authority respect the rights of citizens and those of other persons protected by the Bill of Rights.

1. Members of the local community have the right-
   
   1. through mechanisms and in accordance with processes and procedures provided for in terms of this Act or other applicable legislation to-
      
      1. contribute to the decision-making processes of the municipality; and
      2. submit written or oral recommendations, representations and complaints to the municipal council or to another political structure or a political office bearer or the administration of the municipality;
   2. to prompt responses to their written or oral communications, including complaints, to the municipal council or to another political structure or a political office bearer or the administration of the municipality;
   3. to be informed of decisions of the municipal council, or another political structure or any political office bearer of the municipality, affecting their rights, property and reasonable expectations;
   4. to regular disclosure of the state of affairs of the municipality, including its finances;
   5. to demand that the proceedings of the municipal council and those of its committees must be-
      
      1. open to the public, subject to section 20;
      2. conducted impartially and without prejudice; and
      3. untainted by personal self-interest;
   6. to the use and enjoyment of public facilities; and
   7. to have access to municipal services which the municipality provides, provided the duties set out in subsection (2)(b) are complied with.
2. Members of the local community have the duty-
   
   1. when exercising their rights, to observe the mechanisms, processes and procedures of the municipality;
   2. where applicable, and subject to section 97(1)(c), to pay promptly service fees, surcharges on fees, rates on property and other taxes, levies and duties imposed by the municipality;
   3. to respect the municipal rights of other members of the local community;
   4. to allow municipal officials reasonable access to their property for the performance of municipal functions; and
   5. to comply with by-laws of the municipality applicable to them.

1. A municipality's administration is governed by the democratic values and principles embodied in section 195(1) of the Constitution.
2. The administration of a municipality must-
   
   1. be responsive to the needs of the local community;
   2. facilitate a culture of public service and accountability amongst staff;
   3. take measures to prevent corruption;
   4. establish clear relationships, and facilitate co-operation and communication between it and the local community;
   5. give members of the local community full and accurate information about the level and standard of municipal services they are entitled to receive; and
   6. inform the local community how the municipality is managed, of the costs involved and the persons in charge.

The rights and duties of municipal councils and of the members of the local community, and the duties of the administrations of municipalities, as set out in sections 4, 5 and 6, are subject to the Constitution, the other provisions of this Act and other applicable legislation.

1. A municipality has all the functions and powers conferred by or assigned to it in terms of the Constitution, and must exercise them subject to Chapter 5 of the Municipal Structures Act.
2. A municipality has the right to do anything reasonably necessary for, or incidental to, the effective performance of its functions and the exercise of its powers.

1. A Cabinet member or Deputy Minister initiating the assignment of a function or a power by way of national legislation to municipalities generally must, before the draft legislation providing for [he assignment is introduced in Parliament-
   
   1. consult the Minister, the national Minister of Finance and organised local government representing local government nationally;
   2. consider any assessment by the Financial and Fiscal Commission in terms of subsection (4); and
   3. publish the draft legislation in terms of section 154 (2) of the Constitution.
2. An MEC initiating the assignment of a function or a power by way of provincial legislation to municipalities in the province generally must, before the draft legislation providing for the assignment is introduced in the relevant provincial legislature-
   
   1. consult the MEC responsible for finance in the province, the MEC for local government in the province and organised local government representing local government in the province;
   2. consider any assessment by the Financial and Fiscal Commission in terms of subsection (4); and
   3. publish the draft legislation in terms of section 154 (2) of the Constitution.
3. The Cabinet member, Deputy Minister or MEC initiating the national or provincial legislation referred to in subsections (1) and (2), must take appropriate steps to ensure sufficient funding, and capacity building initiatives as may be needed, for the performance of the assigned function or power by the municipalities concerned if-
   
   1. the assignment imposes a duty on the municipalities concerned;
   2. that duty falls outside the functional areas listed in Part B of Schedule 4 or Part B of Schedule 5 to the Constitution or is not incidental to any of those functional areas; and
   3. the performance of that duty has financial implications for the municipalities concerned.
4. The Cabinet member, Deputy Minister or MEC initiating the national or provincial legislation referred to in subsections (1) and (2), must request the Financial and Fiscal Commission to make an assessment of the financial implications of the legislation.

1. A Cabinet member initiating the assignment of a function or a power to any specific municipality-
   
   1. by way of national legislation, must consult the Minister before the draft legislation providing for the assignment is introduced in Parliament; or
   2. by way of an agreement in terms of section 99 of the Constitution, must consult the Minister before the agreement is concluded.
2. An MEC initiating the assignment of a function or a power to any specific municipality-
   
   1. by way of provincial legislation, must consult the MEC for local government in the province before the draft legislation providing for the assignment is introduced in the relevant provincial legislature; or
   2. by way of an agreement in terms of section 126 of the Constitution, must consult the Minister before the agreement is concluded.
3. The Cabinet member or MEC initiating the legislation or agreement referred to in subsections (1) and (2), respectively, must take appropriate steps to ensure sufficient funding, and capacity building initiatives as may be needed, for the performance of the assigned function or power by the municipality concerned if-
   
   1. the assignment of the function or power imposes a duty on the municipality concerned;
   2. that duty falls outside the functional areas listed in Part B of Schedule 4 or Part B of Schedule 5 to the Constitution or is not incidental to any of those functional areas; and
   3. the performance of that duty has financial implications for the municipality concerned.

1. The executive and legislative authority of a municipality is exercised by the council of the municipality, and the council takes all the decisions of the municipality subject to section 59.
2. A municipality may exercise executive and legislative authority within its boundaries only, but may, by written agreement with another municipality and subject to Chapter 5 of the Municipal Structures Act and other applicable national legislation, exercise executive authority in the area of that other municipality.
3. A municipality exercises its legislative or executive authority by-
   
   1. developing and adopting policies, plans, strategies and programmed, including setting targets for delivery;
   2. promoting and undertaking development;
   3. establishing and maintaining an administration;
   4. administering and regulating its internal affairs and the local government affairs of the local community;
   5. implementing applicable national and provincial legislation and its by-laws;
   6. providing municipal services to the local community. or appointing appropriate service providers in accordance with the criteria and process set out in section 78;
   7. monitoring and, where appropriate, regulating municipal services where those services are provided by service providers other than the municipality;
   8. preparing, approving and implementing its budgets;
   9. imposing and recovering rates, taxes, levies, duties, service fees and surcharges on fees, including setting and implementing tariff, rates and tax and debt collection policies;
   10. monitoring the impact and effectiveness of any services, policies, programmed or plans;
   11. establishing and implementing performance management systems;
   12. promoting a safe and healthy environment;
   13. passing by-laws and taking decisions on any of the above-mentioned matters; and
   14. doing anything else within its legislative and executive competence.
4. A decision taken by a municipal council or any other political structure of the municipality must be recorded in writing.

1. Only a member or committee of a municipal council may introduce a draft by-law in the council.
2. A by-law must be made by a decision taken by a municipal council-
   
   1. in accordance with the rules and orders of the council; and
   2. with a supporting vote of a majority of its members.
3. No by-law may be passed by a municipal council unless-
   
   1. all the members of the council have been given reasonable notice; and
   2. the proposed by-law has been published for public comment in a manner that allows the public an opportunity to make representations with regard to the proposed by-law.
4. Subsections (1) to (3) also apply when a municipal council incorporates by reference, as by-laws, provisions of-
   
   1. legislation passed by another legislative organ of state: or
   2. standard draft by-laws made in terms of section 14.

A by-law passed by a municipal council-

1. must be published promptly in the Provincial Gazette, and, when feasible, also in a local newspaper or in any other practical way to bring the contents of the by-law to the attention of the local community; and
2. takes effect when published or on a future date determined in or in terms of the by-law.

1. 1. The Minister, at the request of organised local government representing local government nationally, or after consulting the MECS for local government and organised local government, may by notice in the Gazette-
      
      1. make standard draft by-laws concerning any matter, including standard draft rules and orders referred to in section 160(6) of the Constitution, for which municipal councils may make by-laws; and
      2. amend any standard draft by-laws made in terms of subparagraph (i).
   2. Before making any standard draft by-laws or amendment in terms of paragraph the Minister must-
      
      1. publish the proposed standard draft by-laws or amendment in the Gazette for public comment; and
      2. consult the Cabinet member concerned if those standard draft by-laws or amendment affect that Cabinet member's area of responsibility.
2. 1. An MEC for local government, on request by organised local government representing local government in the province, or after consulting the Minister and organised local government, may by notice in the Provincial Gazette-
      
      1. make standard draft by-laws concerning any matter for which municipal councils in the province may make by-laws; and
      2. amend any standard draft by-laws made in terms of subparagraph (i)
   2. Before making any standard draft by-laws or amendment in terms of paragraph (a), the MEC must-
      
      1. publish the proposed standard draft by-laws or amendment in the Provincial Gazette for public comment; and
      2. consult the MEC concerned if those standard draft by-laws or amendment affect that MEC'S area of responsibility.
3. 1. A standard draft by-law or an amendment of a standard draft by-law is applicable in a municipality only if, and to the extent and subject to any modifications and qualifications, adopted by the council of that municipality.
   2. The repeal of a standard draft by-law after it has been adopted by a municipality does not affect the continuation of that by-law in that municipality.
4. If a municipal council intends to adopt a standard draft by-law with or without any modifications or qualifications, it must follow the procedure set out in section 12 (3) end, after adoption, publish the by-law in accordance with section 13.

1. A municipality must compile and maintain in bound or loose-leaf form, and when feasible also in electronic format, a compilation of all its by-laws, including any provisions incorporated by reference as by-laws of the municipality.
2. This compilation, to be known as the municipal code, must be-
   
   1. constantly updated and annotated; and
   2. kept at the municipality's head office as the municipality's official record of all applicable by-laws.
3. The municipality, at the request of a member of the public, must provide that person with a copy of or an extract from its municipal code against payment of a reasonable fee determined by the municipal council.

1. A municipality must develop a culture of municipal governance that complements formal representative government with a system of participatory governance, and must for this purpose-
   
   1. encourage, and create conditions for, the local community to participate in the affairs of the municipality, including in-
      
      1. the preparation. implementation and review of its integrated development plan in terms of Chapter 5;
      2. the establishment, implementation and review of its performance management system in terms of Chapter 6;
      3. the monitoring and review of its performance, including the outcomes and impact of such performance;
      4. the preparation of its budget; and
      5. strategic decisions relating to the provision of municipal services in terms of Chapter 8;
   2. contribute to building the capacity of-
      
      1. the local community to enable it to participate in the affairs of the municipality; and
      2. councillors and staff to foster community participation; and
   3. use its resources, and annually allocate funds in its budget, as may be appropriate for the purpose of implementing paragraphs (a) and (b).
2. Subsection (1) must not be interpreted as permitting interference with a municipal council’s right to govern and to exercise the executive and legislative authority of the municipality.

1. Participation by the local community in the affairs of the municipality must take place through-
   
   1. political structures for participation in terms of the Municipal Structures Act;
   2. the mechanisms, processes and procedures for participation in municipal governance established in terms of this Act;
   3. other appropriate mechanisms, processes and procedures established by the municipality;
   4. councillors; and
   5. generally applying the provisions for participation as provided for in this Act.
2. A municipality must establish appropriate mechanisms, processes and procedures to enable the local community to participate in the affairs of the municipality, and must for this purpose provide for-
   
   1. the receipt, processing and consideration of petitions and complaints lodged by members of the local community;
   2. notification and public comment procedures, when appropriate;
   3. public meetings and hearings by the municipal council and other political structures and political office bearers of the municipality, when appropriate;
   4. consultative sessions with locally recognised community organisations and, where appropriate, traditional authorities; and
   5. report-back to the local community.
3. When establishing mechanisms, processes and procedures in terms of subsection the municipality must take into account the special needs of-
   
   1. people who cannot reed or write;
   2. people with disabilities;
   3. women; and
   4. other disadvantaged groups.
4. A municipal council may establish one or more advisory committees consisting of persons who are not councillors to advise the council on any matter within the council's competence. When appointing the members of such a committee, gender representivity on must be taken into account.

1. A municipality must communicate to its community information concerning-
   
   1. the available mechanisms, processes and procedures to encourage and facilitate community participation;
   2. the matters with regard to which community participation is encouraged;
   3. the rights and duties of members of the local community; and
   4. municipal governance, management and development.
2. When communicating the information mentioned in subsection (1), a municipality must take into account-
   
   1. language preferences and usage in the municipality; and
   2. the special needs of people who cannot read or write.

The municipal manager of a municipality must give notice to the public, in a manner determined by the municipal council, of the time, date and venue of every-

1. ordinary meeting of the council; and
2. special or urgent meeting of the council, except when time constraints make this impossible.

1. Meetings of a municipal council and those of its committees are open to the public, including the media, and the council or such committee may not exclude the public, including the media, from a meeting, except when-
   
   1. it is reasonable to do so having regard to the nature of the business being transacted; and
   2. a by-law or a resolution of the council specifying the circumstances in which the council or such committee may close a meeting and which complies with paragraph (a), authorises the council or such committee to close the meeting to the public.
2. A municipal council, or a committee of the council, may not exclude the public including the media, when considering or voting on any of the following matters:
   
   1. A draft by-law tabled in the council;
   2. a budget tabled in the council;
   3. the municipality's draft integrated development plan, or any amendment of the plan, tabled in the council;
   4. the municipality's draft performance management system, or any amendment of the system, tabled in the council;
   5. the decision to enter into a service delivery agreement referred to in section 76(b); or
   6. any other matter prescribed by regulation.
3. An executive committee mentioned in section 42 of the Municipal Structures Act and a mayoral committee mentioned in section 60 of that Act may, subject to subsection (1)(a), close any or all of its meetings to the public, including the media.
4. A municipal council-
   
   1. within the financial and administrative capacity of the municipality, must provide space for the public in the chambers and places where the council and its committees meet: and
   2. may take reasonable steps to regulate public access to, and public conduct at meetings of the council and its committees.

1. When anything must be notified by a municipality through the media to the local community in terms of this Act or any other applicable legislation, it must be done-
   
   1. in the local newspaper or newspapers of its area;
   2. in a newspaper or newspapers circulating in its area and determined by the council as a newspaper of record; or
   3. by means of radio broadcasts covering the area of the municipality.
2. Any such notification must be in the official languages determined by the council, having regard to language preferences and usage within its area.
3. A copy of every notice that must be published in the Provincial Gazette or the media in terns of this Act or any other applicable legislation, must be displayed at the municipal offices.
4. When the municipality invites the local community to submit written comments or representations on any matter before the council, it must be stated in the invitation that any person who cannot write may come during office hours to a place where a staff member of the municipality named in the invitation, will assist that person to transcribe that person's comments or representations.
5. 1. When a municipality requires a form to be completed by a member of the local community, a staff member of the municipality must give reasonable assistance to persons who cannot read or write, to enable such persons to understand and complete the form;
   2. If the form relates to the payment of money to the municipality or to the provision of any service, the assistance must include an explanation of its terms and conditions.

1. The Minister may in terms of section 120 make regulations or issue guidelines concerning-
   
   1. minimum standards for municipalities, including minimum standards relating to funding, when implementing the provisions of this Chapter; and
   2. any matter that may facilitate-
      
      1. the participation of the local community in the affairs of the municipality; or
      2. the application of this Chapter.
2. When making regulations or issuing guidelines in terms of section 120 to provide for or to regulate the matters mentioned in subsection (1) of this section, the Minister must-
   
   1. take into account the capacity of municipalities to comply with those matters; and
   2. differentiate between different kinds of municipalities according to their respective capacities.
3. The Minister, by notice in the Gazette, may phase in the application of the provisions of this Chapter which place a financial or administrative burden on municipalities.
4. A notice in terms of subsection (3) may-
   
   1. determine different dates on which different provisions of this Chapter become applicable to municipalities;
   2. apply to all municipalities generally;
   3. differentiate between different kinds of municipalities which may. for the purpose of the phasing in of the relevant provisions, be defined in the notice in relation to categories or types of municipalities or in any other way; or
   4. apply to a specific kind of municipality only, as defined in the notice.

A municipality must -

1. establish a performance management system that is -
1. commensurate with its resources;
2. best suited to its circumstances; and
3. in line with the priorities, objectives, indicators and targets contained in its integrated development plan;
2. promote a culture of performance management among its political structures, political office bearers and councillors and in its administration; and
3. administer its affairs in an economical, effective, efficient and accountable manner.

The executive committee or executive mayor of a municipality or, if the municipality does not have an executive committee or executive mayor, a committee of councillors appointed by the municipal council must -

1. manage the development of the municipality's performance management system;
2. assign responsibilities in this regard to the municipal manager;
3. and submit the proposed system to the municipal council for adoption.

A municipality must establish mechanisms to monitor and review its performance management system.

1. A municipality must in terms of its performance management system and in accordance with any regulations and guidelines that may be prescribed -
1. set appropriate key performance indicators as a yardstick for measuring performance, including outcomes and impact. with regard to the municipality’s development priorities and objectives set out in its integrated development plan;
2. set measurable performance targets with regard to each of those development priorities and objectives;
3. with regard to each of those development priorities and objectives and against the key performance indicators and targets set in terms of paragraphs (a) and (b) -
1. monitor performance; and
2. measure and review performance at least once per year;
4. take steps to improve performance with regard to those development priorities and objectives where performance targets are not met; and
5. establish a process of regular reporting to -
1. the council, other political structures, political office bearers and staff of the municipality; and
2. the public and appropriate organs of state.
2. The system applied by a municipality in compliance with subsection (1)(c) must be devised in such a way that it may serve as an early warning indicator of under-performance.

A municipality, through appropriate mechanisms, processes and procedures established in terms of Chapter4, must involve the local community in the development, implementation and review of the municipality's performance, management system, and, in particular, allow the community to participate in the setting of appropriate key performance indicators and performance targets for the municipality.

1. The Minister, after consultation with the MECS for local government and organised local government representing local government nationally, may -
1. by regulation prescribe general key performance indicators that are appropriate and that can be applied to local government generally; and
2. when necessary, review and adjust those general key performance indicators.
2. Key performance indicators set by a municipality must include any general key performance indicators prescribed in terms of subsection (1), to the extent that these indicators are applicable to the municipality concerned.

A municipality, in a manner determined by its council, must make known both internally and to the general public, the key performance indicators and performance targets set by it for purposes of its performance management system.

The results of performance measurements in terms of section 41(1)(c) must be audited -

1. as part of the municipality's internal auditing processes; and
2. annually by the Auditor-General.

1. A municipality must prepare for each financial year an annual report consisting of -
   
   1. a performance report reflecting -
      
      1. the municipality's, and any service provider's, performance during that financial year, also in comparison with targets of and with performance in the previous financial year;
      2. the development and service delivery priorities and the performance targets set by the municipality for the following financial year; and
      3. measures that were or are to be taken to improve performance;
   2. the financial statements for that financial year prepared in accordance with the standards of generally recognised accounting practise referred to in section 89 of the Public Finance Management Act, 1999 (Act No. 1 of 1999);
   3. an audit report on the financial statements and the report on the audit performed in terms of section 45(b); and
   4. any other reporting requirements in terms of other applicable legislation.
2. A municipality must table its annual report within one month of receiving the audit report referred to in subsection (1)(c).
3. ...
   
   1. The municipal manager must -
      
      1. by prior notice in the media, inform the local community of the meeting or meetings of the council at which the municipality's annual report is tabled or discussed, which meetings must be open to the public;
      2. give written notice of such meetings to the Auditor-General and the MEC for local government in the province;
      3. submit copies of the minutes of those meetings to the Auditor-General and the MEC for local government in the province;
   2. Representatives of the Auditor-General and the MEC for local government in the province are entitled to attend and to speak at such meetings, and the municipal manager must be available to respond to questions related to the annual report.
4. The municipality must adopt its annual report, and within 14 days -
   
   1. make copies of the report accessible to the public, interested organisations and the media, free of charge or at a reasonable price; and
   2. submit a copy of the report to -
      
      1. the MEC for local government in the province;
      2. the Auditor-General; and
      3. such other institutions as may be prescribed by regulation,

1. The MEC for local government must annually compile and submit to the provincial legislatures and the Minister a consolidated report on the performance of municipalities in the province.
2. The report must -
1. identify municipalities that under-performed during the year;
2. propose remedial action to be taken; and
3. be published in the Provincial Gazette.
3. The MEC for local government must submit a copy of the report to the National Council of Provinces.

1. The Minister must annually compile and submit to Parliament and the MECS for local government a consolidated report of local government performance in terms of general key performance indicators.
2. The report must be published in the Gazette.

1. The Minister may for the purposes of this Chapter make regulations or issue guidelines in terms of section 120 to provide for or regulate -
   
   1. incentives to ensure that municipalities establish their performance management systems within the applicable prescribed period, and comply with the provisions of this Act concerning performance management systems;
   2. the setting of key performance indicators by a municipality with regard to its development objectives;
   3. the identification of appropriate general key performance indicators that can be applied to municipalities generally and that reflect the object and intent of section 23;
   4. the regular review by a municipality of its key performance indicators;
   5. the setting of' a framework for performance targets by municipalities consistent with their development priorities, objectives and strategies set out in their integrated development plans;
   6. mechanisms, systems and processes for the monitoring and measurement of performance by a municipality with regard to its development objectives;
   7. the internal auditing of performance measurements;
   8. the assessment of those performance measurements by a municipality;
   9. the assessment of progress by a municipality with the implementation of its integrated development plan;
   10. the improvement of performance;
   11. any other matter that may facilitate
       
       1. the implementation by municipalities of an effective system of performance management; or
       2. the application of this Chapter.
2. When making regulations or issuing guidelines in terms of section 120 to provide for or to regulate the matters mentioned in subsection (1) of this section, the Minister must -
   
   1. take into account the capacity of municipalities to comply with those matters; and
   2. differentiate between different kinds of municipalities according to their respective capacities.
3. The Minister, by notice in the Gazette, may phase in the application of the provisions of this Chapter which place a financial or administrative burden on municipalities.
4. A notice in terms of subsection (3) may -
   
   1. determine different dates on which different provisions of this Chapter becomes applicable to municipalities;
   2. apply to all municipalities generally;
   3. differentiate between different kinds of municipalities which may, for the purpose of the phasing in of the relevant provisions, be defined in the notice in relation to categories or types of municipalities or in any other way; or
   4. apply to a specific kind of municipality only. as defined in the notice.

1. A municipality must give effect to the provisions of the Constitution and-
   
   1. give priority to the basic needs of the local community;
   2. promote the development of the local community; and
   3. ensure that all members of the local community have access to at least the minimum level of basic municipal services.
2. Municipal services must-
   
   1. be equitable and accessible;
   2. be provided in a manner that is conducive to-
      
      1. the prudent, economic, efficient and effective use of available resources; and
      2. the improvement of standards of quality over time;
   3. be financially sustainable;
   4. be environmentally sustainable; and
   5. be regularly reviewed with a view to upgrading, extension and improvement.

In relation to the levying of rates and other taxes by a municipality and the charging of fees for municipal services, a municipality must, within its financial and administrative capacity -

1. establish a sound customer management system that aims to create a positive and reciprocal relationship between persons liable for these payments and the municipality, and where applicable, a service provider;
2. establish mechanisms for users of services and ratepayers to give feedback to the municipality or other service provider regarding the quality of the services and the performance of the service provider;
3. take reasonable steps to ensure that users of services are informed of the costs involved in service provision. the reasons for the payment of service fees, and the manner in which monies raised from the service are utilized;
4. where the consumption of services has to be measured, take reasonable steps to ensure that the consumption by individual users of services is measured through accurate and verifiable metering systems;
5. ensure that persons liable for payments, receive regular and accurate accounts that indicate the basis for calculating the amounts due;
6. provide accessible mechanisms for those persons to query or verify accounts and metered consumption, and appeal procedures which allow such persons to receive prompt redress for inaccurate accounts;
7. provide accessible mechanisms for dealing with complaints from such persons, together with prompt replies and corrective action by the municipality;
8. provide mechanisms to monitor the response time and efficiency in complying with paragraph (g); and
9. provide accessible pay points and other mechanisms for settling accounts or for making pre-payments for services.

A municipality -

1. must collect all money that is due and payable to it, subject to this Act and any other applicable legislation; and
2. for this purpose, must adopt, maintain and implement a credit control and debt collection policy which is consistent with its rates and tariff policies and complies with the provisions of this Act.

1. A credit control and debt collection policy must provide for -
   
   1. credit control procedures and mechanisms;
   2. debt collection procedures and mechanisms;
   3. provision for indigent debtors that is consistent with its rates and tariff policies and any national policy on indigents;
   4. realistic targets consistent with -
      
      1. general recognised accounting practices and collection ratios; and
      2. the estimates of income set in the budget less an acceptable provision for bad debts;
   5. interest on arrears, where appropriate;
   6. extensions of time for payment of accounts;
   7. termination of services or the restriction of the provision of services when payments are in arrears;
   8. matters relating to unauthorised consumption of services, theft and damages; and
   9. any other matters that may be prescribed by regulation in terms of section 104.
2. A credit control and debt collection policy may differentiate between different categories of ratepayers, users of services, debtors, taxes, services, service standards and other matters as long as the differentiation does not amount to unfair discrimination.

1. A municipal council must adopt by-laws to give effect to the municipality's credit control and debt collection policy, its implementation and enforcement.
2. By-laws in terms of subsection (1) may differentiate between different categories of ratepayers, users of services, debtors, taxes, services, service standards and other matters as long as the differentiation does not amount to unfair discrimination.

A municipality's executive committee or executive mayor or, if a municipality does not have an executive committee or executive mayor, the municipal council itself or a committee appointed by it, as the supervisory authority must -

1. oversee and monitor -
   
   1. the implementation and enforcement of the municipality's credit control and debt collection policy and any by-laws enacted in terms of section 98; and
   2. the performance of the municipal manager in implementing the policy and any by-laws;
2. when necessary, evaluate or review the policy and any by-laws, or the implementation of the policy and any such by-laws, in order to improve efficiency of its credit control and debt collection mechanisms, processes and procedures; and
3. at such intervals as may be determined by the council report to a meeting of the council, except when the council itself performs the duties mentioned in paragraphs (a) and (b).

The municipal manager or service provider must -

1. implement and enforce the municipality's credit control and debt collection policy and any by-laws enacted in terms of section 98;
2. in accordance with the credit control and debt collection policy and any such by-laws, establish effective administrative mechanisms, processes and procedures to collect money that is due and payable to the municipality; and
3. at such intervals as may be determined by the council report the prescribed particulars to a meeting of the supervisory authority referred to in section 99.

The occupier of premises in a municipality must give an authorized representative of the municipality or of a service provider access at all reasonable hours to the premises in order to read, inspect, install or repair any meter or service connection for reticulation, or to disconnect, stop or restrict the provision of any service.

1. A municipality may -
   
   1. consolidate any separate accounts of persons liable for payments to the municipality;
   2. credit a payment by such a person against any account of that person; and
   3. implement any of the debt collection and credit control measures provided for in this Chapter in relation to any arrears on any of the accounts of such a person.
2. Subsection (1) does not apply where there is a dispute between the municipality and a person referred to in that subsection concerning any specific amount claimed by the municipality from that person.

A municipality may -

1. with the consent of a person liable to the municipality for the payment of rates or other taxes, or fees for municipal services, enter into an agreement with that person's employer to deduct from the salary or wages of that person -
   
   1. any outstanding amounts due by that person to the municipality; or
   2. such regular monthly amounts as may be agreed; and
2. provide special incentives for -
   
   1. employers to enter into such agreements; and
   2. employees to consent to such agreements.

1. The Minister may for the purposes of this Chapter make regulations or issue guidelines in accordance with section 120 to provide for or regulate the following matters:
   
   1. the particulars that must be contained in the municipal manager's report in terms of section 100(c);
   2. the identification of municipal services provided by the municipality or other service providers to users of services where the use of the service by the user can reasonably be determined, measured or estimated per quantity used or per frequency of such use;
   3. the determination, measurement or estimate of the use by each user of each service so identified;
   4. user agreements, and deposits and bank guarantees for the provision of municipal services;
   5. the rendering of accounts to ratepayers and users and the particulars to be contained in the accounts;
   6. the action that may be taken by municipalities and service providers to secure payment of accounts that are in arrear, including -
      
      1. the termination of municipal services or the restriction of the provision of services;
      2. the seizure of property;
      3. the attachment of rent payable on a property; and
      4. the extension of liability to a director, a trustee or a member if the debtor is a company, a trust or a close corporation;
   7. appeals against the accuracy of accounts for municipal taxes or services;
   8. the manner in and time within which such appeals must be lodged and determined and the consequences of successful and unsuccessful appeals;
   9. extensions for the payment of smears and interest payable in respect of such arrears;
   10. service connections and disconnections, and the resumption of discontinued services;
   11. the combating of unauthorised consumption, connection and reconnection and theft of municipal services;
   12. the development and implementation of an indigent policy;
   13. the tampering with or theft of meters, service supply equipment and reticulation network and any other fraudulent activity in connection with the provision of municipal services; and
   14. any other matter that may facilitate -
       
       1. effective and efficient systems of credit control and debt collection by municipalities; or
       2. the application of this Chapter.
2. When making regulations or issuing guidelines in terms of section 120 to provide for or to must -
   
   1. regulate the matters mentioned in subsection (1) of this section, the Minister take into account the capacity of municipalities to comply with those matters; and
   2. differentiate between different kinds of municipalities according to their respective capacities.

1. A municipality is a local authority for purposes of the Limitation of Legal Proceedings (Provincial and Local Authorities) Act, 1970 (Act No. 94 of 1970).
2. A municipality may compromise or compound any action, claim or proceedings, and may submit to arbitration any matter other than a matter involving a decision on its status, powers, duties or the validity of its actions or by-laws.

In legal proceedings against a municipality, a certificate which purports to be signed by a staff member of the municipality and which claims that the municipality used the best known, or the only, or the most practicable and available methods in exercising any of its powers or performing any of its functions, must on its mere production by any person be accepted by the court as evidence of that fact.

A copy of the Provincial Gazette in which a by-law was published, may on its mere production in a court by any person, be used as evidence that that by-law was passed by a municipality concerned.

A staff member of a municipality authorised in terms of section 22(8)(6) of the National Prosecuting Authority Act, 1998 (Act No. 32 of 1998), to conduct prosecutions, may institute criminal proceedings and conduct the prosecution in respect of a contravention of or failure to comply with a provision of-

1. a by-law or regulation of the municipality;
2. other legislation administered by the municipality; or
3. other legislation as the National Director of Public Prosecutions may determine in terms of section 22(8)(b) of the National Prosecuting Authority Act, 1998.

Fines and estreated bails recovered in respect of offences or alleged offences referred to in item 2 of Schedule 4 to the Public Finance Management Act, 1999 (Act No 1 of 1999), must be paid into the revenue fund of the municipality.

Normal or extended office hours is the only time-

1. a payment may be made at a municipality, except when payment is made by electronic transfer or at agency pay-points; or
2. any notice or other document may be served on the municipality, including on its council, or other structure or functionary or a staff member in an official capacity, except when the matter in connection with which a summons is served is an urgent matter.

1. Any notice or other document that is seined on a person in terms of this Act, is regarded as having been served-
   
   1. when it has been delivered to that person personally;
   2. when it has been left at that person's place of residence or business in the Republic with a person apparently over the age of sixteen years;
   3. when it has been posted by registered or certified mail to that person's last known residential or business address in the Republic and an acknowledgement of the posting thereof from the postal service is obtained;
   4. if that person's address in the Republic is unknown, when it has been served on that person's agent or representative in the Republic in the manner provided by paragraphs (a), (b) or (c); or
   5. if that person's address and agent or representative in the Republic is unknown, when it has been posted in a conspicuous place on the property or premises, if any, to which it relates.
2. When any notice or other document must be authorised or served on the owner, occupier or holder of any property or right in any property, it is sufficient if that person is described in the notice or other document as the owner, occupier or holder of the property or right in question, and it is not necessary to name that person.
3. Any legal process is effectively and sufficiently served on a municipality when it is delivered to the municipal manager or a person in attendance at the municipal manager's office.

Public servitudes in favour of a municipality are under the control of the municipality which must protect and enforce the rights of the local community arising from those servitudes.

Except where otherwise provided, all records and documents of a municipality are in the custody of the municipal manager.

1. A registrar of deeds or other registration officer of immovable property may not register the transfer of property except on production to that registration officer of a prescribed certificate-
   
   1. issued by the municipality in which that property is situated; and
   2. which certifies that all amounts due in connection with that property for municipal service fees, surcharges on fees, property rates and other municipal taxes, levies and duties during the two years preceding the date of application for the certificate have been fully paid.
2. In the case of the transfer of immovable property by a trustee of an insolvent estate, the provisions of this section are subject to section 89 of the Insolvency Act, 1936 (Act No. 24 of 1936).
3. An amount due for municipal service fees, surcharges on fees, property rates and other municipal taxes, levies and duties is a charge upon the property in connection with which the amount is owing and enjoys preference over any mortgage bond registered against the property.

1. A councillor who attempts to influence the municipal manager or any other staff member or an agent of a municipality not to enforce an obligation in terms of this Act, any other applicable legislation or any by-law or a decision of the council of the municipality, is guilty of an offence and on conviction liable to a tine or to imprisonment for a period not exceeding two years.
2. A municipal manager or other staff member of a municipality who accedes to an attempt mentioned in subsection (1), is guilty of an offence and on conviction liable to a fine or to imprisonment for a period not exceeding two years.
3. A person who contravenes section 101 is guilty of an offence and liable on conviction to a fine or to imprisonment for a period not exceeding one year.
4. A person convicted of an offence and sentenced to more than 12 month’s imprisonment without the option of a fine, is disqualified to remain a councillor of the municipality concerned and to become a councillor of any municipality during a period of five years as from the conviction.

1. The Minister may, by notice in the Gazette and after consultation with organised local government representing local government nationally, make regulations or issue guidelines not inconsistent with this Act concerning-
   
   1. the matters listed in sections 22, 37, 49, 72, 94 and 104;
   2. any matter that may be prescribed in terms of this Act; and
   3. any matter that may facilitate the application of this Act.
2. Regulations and guidelines made or issued in terms of subsection (1) may differentiate between-
   
   1. different kinds of municipalities which may, for the purposes of the regulations, be defined in the regulations either in relation to categories or types of municipalities or in any other way;
   2. different categories of municipal services;
   3. different categories of service providers;
   4. ratepayers, users of services, debtors and other categories of persons; or
   5. different categories of ratepayers, users of services or debtors as long as the differentiation does not amount to unfair discrimination.
3. Regulations in terms of subsection (1) may prescribe penalties for the contravention of or non-compliance with any specific provisions of the regulations, which may include an appropriate fine and imprisonment not exceeding six months.
4. Draft regulations and guidelines must be published in the Gazette for public comment before their enactment in terms of subsection (1).
5. The absence of a regulation or guideline that maybe prescribed in terms of this Act does not prevent-
   
   1. the application of a provision of this Act in connection with which the regulation or guideline may be prescribed; or
   2. the performance of a function or the exercise of a power assigned in such a provision.
6. 1. Guidelines issued in terms of subsection (1) are not binding;
   2. Compliance with guidelines issued in terms of subsection (1) may be taken into account in the determination of inter-governmental financial policies and arrangements.
7. Regulations made in terms of this section-
   
   1. must be submitted to Parliament at least 30 days before their publication in the Gazette; and
   2. take effect on a date determined in the regulations, which must be the date of publication or a date after such publication.

The legislation mentioned in Schedule 3 is hereby amended to the extent set out in that Schedule.

1. Any written agreement referred to in section 11(2) which existed immediately before this Act took effect, must be regarded as having been concluded in terms of that section.
2. The Minister must-
   
   1. initiate steps for the rationalisation of existing national and provincial planning legislation applicable to municipalities in order to facilitate local development planning as an integrated concept within the constitutional system of co-operative government envisaged in section 41 of the Constitution; and
   2. establish mechanisms for facilitating co-ordination between sectoral regulation with respect to local government matters.

1. The Minister, by notice in the Gazette, may phase in the application of the provisions of this Act which place a financial or administrative burden on municipalities.
2. A notice in terms of subsection (1) may-
   
   1. determine different dates on which different provisions of this Act become applicable to municipalities;
   2. apply to all municipalities generally;
   3. differentiate between different kinds of municipalities which may, for the purpose of the phasing in of the relevant provisions, be defined in the notice in relation to categories or types of municipalities or in any other way; or
   4. apply to a specific kind of municipality only, as defined in the notice.

This Act is called the Local Government: Municipal Systems Act, 2000, and takes effect on a date determined by the President by proclamation in the Gazette.

Councillors are elected to represent local communities on municipal councils, to ensure that municipalities have structured mechanisms of accountability to local communities, and to meet the priority needs of communities by providing services equitably, effectively and sustainably within the means of the municipality. In fulfilling this role councillors must be accountable to local communities and report back at least quarterly to constituencies cm council matters, including the performance of the municipality in terms of established indicators. In order to ensure that councillors fulfill their obligations to their communities, and support the achievement by the municipality of its objectives set out in section 19 of the Municipal Structures Act, the following Code of Conduct is established.

In this Schedule 'partner' means a person who permanently lives with another person in a manner as if married.

A councillor must-

1. perform the functions of office in good faith, honestly and a transparent manner; and
2. at all times act in the best interest of the municipality and in such a way that the credibility and integrity of the municipality are not compromised.

A councillor must attend each meeting of the municipal council and of a committee of which that councillor is a member, except when-

1. leave of absence is granted in terms of an applicable law or as determined by the rules and orders of the council; or
2. that councillor is required in terms of this Code to withdraw from the meeting.

1. A municipal council may impose a fine as determined by the standing rules and orders of the municipal council on a councillor for:
   
   1. not attending a meeting which that councillor is required to attend in terms of item 3; or
   2. failing to remain in attendance at such a meeting.
2. A councillor who is absent from three or more consecutive meetings of a municipal council, or from three or more consecutive meetings of a committee, which that councillor is required to attend in terms of item 3, must be removed from office as a councilor.
3. Proceedings for the imposition of a tine or the removal of a councillor must be conducted in accordance with a uniform standing procedure which each municipal council must adopt for the purposes of this item. The uniform standing procedure must comply with the rules of natural justice.

1. A councillor must-
   
   1. disclose to the municipal council, or to any committee of which that councillor is a member, any direct or indirect personal or private business interest that that councillor, or any spouse, partner or business associate of that councilor may have in any matter before the council or the committee; and
   2. withdraw from the proceedings of the council or committee when that matter is considered by the council or committee, unless the council or committee decides that the councillor's direct or indirect interest in the titter is trivial or irrelevant.
2. A councillor who, or whose spouse, partner. business associate or close family member, acquired or stands to acquire any direct benefit from a contract concluded with the municipality, must disclose full particulars of the benefit of which the councillor is aware at the first meeting of the municipal council at which it is possible for the councillor to make the disclosure.
3. This section does not apply to an interest or benefit which a council or, or a spouse, partner, business associate or close family member, has or acquires in common with other residents of the municipality.

1. A councillor may not use the position or privileges of a councillor, or confidential information obtained as a councillor, for private gain or to improperly benefit another person.
2. Except with the prior consent of the municipal council, a councillor may not-
   
   1. be a party to or beneficiary under a contract for-
      
      1. the provision of goods or services to the municipality; or
      2. the performance of any work otherwise than as a councillor for the municipality;
   2. obtain a financial interest in any business of the municipality; or
   3. for a fee or other consideration appear on behalf of any other person before the council or a committee.
3. If more than one quarter of the councillors object to consent being given to a councillor in terms of subitem (2), such consent may only be given to the councillor with the approval of the MEC for local government in the province.

1. When elected or appointed, a councillor must within 60 days declare in writing to the municipal manager the following financial interests held by that councilor;
   
   1. shares and securities in any company;
   2. membership of any close corporation;
   3. interest in any trust;
   4. directorships;
   5. partnerships;
   6. other financial interests in any business undertaking;
   7. employment and remuneration;
   8. interest in property;
   9. pension; and
   10. subsidies, grants and sponsorships by any organisation.
2. Any change in the nature or detail of the financial interests of a councillor must be declared in writing to the municipal manager annually.
3. Gifts received by a councillor above a prescribed amount must also be declared in accordance with subitem (1).
4. The municipal council must determine which of the financial interests referred in subitem (1) must be made public having regard to the need for confidentiality and the public interest for disclosure.

A councillor who is a full-time councillor may not undertake any other paid work, except with the consent of municipal council which consent shall not unreasonably be withheld.

A councillor may not request, solicitor accept any reward, gift or favour for-

1. voting or not voting in a particular manner on any matter before the municipal council or before a committee of which that councillor is a member;
2. persuading the council or any committee in regard to the exercise of any power, function or duty;
3. making a representation to the council or any committee of the council; or
4. disclosing privileged or confidential information.

1. A councillor may not without the permission of the municipal council or a committee disclose any privileged or confidential information of the council or committee to any unauthorised person.
2. For the purpose of this item 'privileged or confidential information' includes any information-
   
   1. determined by the municipal council or committee to be privileged or confidential;
   2. discussed in closed session by the council or committee;
   3. disclosure of which would violate a person's right to privacy; or
   4. declared to be privileged, confidential or secret in terms of law.
3. This item does not derogate from the right of any person to access to information in terms of national legislation.

A councillor may not, except as provided by law-

1. interfere in the management or administration of any department of the municipal council unless mandated by council;
2. give or purport to give any instruction to any employee of the council except when authorised to do so;
3. obstruct or attempt to obstruct the implementation of any decision of the council or a committee by an employee of the council; or
4. encourage or participate in any conduct which would cause or contribute to mal-administration in the council.

A councillor may not use, take, acquire or benefit from any property or asset owned, controlled or managed by the municipality to which that councillor has no right.

1. If the chairperson of a municipal council, on reasonable suspicion, is of the opinion that a provision of this Code has been breached, the chairperson must-
   
   1. authorise an investigation of the facts and circumstances of the alleged breach;
   2. give the councillor a reasonable opportunity to reply in writing regarding the alleged breach; and
   3. report the matter to a meeting of the municipal council after paragraphs (a) and (b) have been complied with.
2. A report in terms of subitem (1) (c) is open to the public.
3. The chairperson must report the outcome of the investigation to the MEC for local government in the province concerned.
4. The chairperson must ensure that each councillor when taking office is given a copy of this Code and that a copy of the Code is available in every room or place where the council meets.

1. A municipal council may-
   
   1. investigate and make a finding on any alleged breach of a provision of this Code; or
   2. establish a special committee-
      
      1. to investigate and make a finding on any alleged breach of this Code; and
      2. to make appropriate recommendations to the council.
2. If the council or a special committee finds that a councillor has breached a provision of this Code, the council may-
   
   1. issue a formal warning to the councilor;
   2. reprimand the councillor;
   3. request the MEC for local government in the province to suspend the councillor for a period;
   4. fine the councillor; and
   5. request the MEC to remove the councillor from office.
3. 1. Any councillor who has been warned, reprimanded or fined in terms of paragraph (a), (b) or (d) of subitem (2) may within 14 days of having been notified of the decision of council appeal to the MEC for local government in writing setting out the reasons on which the appeal is based.
   2. A copy of the appeal must be provided to the council;
   3. The council may within 14 days of receipt of the appeal referred to in paragraph (b) make any representation pertaining to the appeal to the MEC for local government in writing;
   4. The MEC for local government may, after having considered the appeal, confirm, set aside or vary the decision of the council and inform the councillor and the council of the outcome of the appeal.
4. The MEC for local government may appoint a person or a committee to investigate any alleged breach of a provision of this Code and to make a recommendation on whether the councillor should be suspended or removed from office.
5. The Commissions Act, 1947 (Act 8 of 1947). may be applied to an investigation in terms of subitem (3).
6. If the MEC is of the opinion that the councillor has breached a provision of this Code, and that such contravention warrants a suspension or removal from office, the MEC may-
   
   1. suspend the councillor for a period and on conditions determined by the MEC; or
   2. remove the councillor from office.
7. Any investigation in terms of this item must be in accordance with the rules of natural justice.

1. Items 1, 2, 5, 6, 9(b) to (d), 10, 11, 12, 13 and 14(1) apply to a traditional leader who participates or has participated in the proceedings of a municipal council in terms of section 81 of the Municipal Structures Act.
2. These items must be applied to the traditional leader in the same way they apply to councillors.
3. If a municipal council or a special committee in terms of item 14 (1) finds that a traditional leader has breached a provision of this Code, the council may-
   
   1. issue a formal warning to the traditional leader; or
   2. request the MEC for local government in the province to suspend or cancel the traditional leader's right to participate in the proceedings of the council.
4. The MEC for local government may appoint a person or a committee to investigate any alleged breach of a provision of this Code and to make a recommendation on whether the right of the traditional leader to participate in the proceedings of the municipal council should be suspended or cancelled.
5. The Commissions Act, 1947, may be applied to an investigation in terms of subitem (4).
6. If the MEC is of the opinion that the traditional leader has breached a provision of this Code, and that such breach warrants a suspension or cancellation of the traditional leader’s right to participate in the council’s proceedings, the MEC may-
   
   1. suspend that right for a period and on conditions determined by the MEC; or
   2. cancel that right.
7. Any investigation in terms of this item must be in accordance with the rules of natural justice.
8. The suspension or cancellation of a traditional leader's right to participate in the proceedings of a council does not affect that traditional leader's right to address the council in terms of section 81 (3) of the Municipal Structures Act.

In this Schedule "partner" means a person who permanently lives with another person in a manner as if married.

A staff member of a municipality must at all times-

1. loyally execute the Iawful policies of the municipal council;
2. perform the functions of office in good faith, diligently, honestly and in a transparent manner;
3. act in such a way that the spirit, purport and objects of section 50 are promoted;
4. act in the best interest of the municipality and in such a way that the credibility and integrity of the municipality are not compromised; and
5. act impartially and treat all people, including other staff members, equally without favour or prejudice.

A staff member of a municipality is a public servant in a developmental local system, and must accordingly-

1. implement the provisions of section 50(2);
2. foster a culture of commitment to serving the public and a collective sense of responsibility for performance in terms of standards and targets;
3. promote and seek to implement the basic values and principles of public administration described in section 195 (1) of the Constitution;
4. obtain copies of or information about the municipality’s integrated development plan, and as far as possible within the ambit of the staff member’s job description, seek to implement the objectives set out in the integrated development plan, and achieve the performance targets set for each performance indicator;
5. participate in the overall performance management system for the municipality, as well as the staff member’s individual performance appraisal and reward system, if such exists, in order to maximise the ability of the municipality as a whole to achieve its objectives and improve the quality of life of its residents.

1. A staff member of a municipality may not-
   
   1. use the position or privileges of a staff member, or confidential information obtained as a staff member, for private gain or to improperly benefit another person; or
   2. take a decision on behalf of the municipality concerning a matter in which that staff member, or that staff member's spouse, partner or business associate, has a direct or indirect personal or private business interest.
2. Except with the prior consent of the council of a municipality a staff member of the municipality may not-
   
   1. be a party to a contract for-
      
      1. the provision of goods or services to the municipality; or
      2. the performance of any work for the municipality otherwise than as a staff member;
   2. obtain a financial interest in any business of the municipality; or
   3. be engaged in any business, trade or profession other than the work of the municipality.

1. A staff member of a municipality who, or whose spouse, partner, business associate or close family member, acquired or stands to acquire any direct benefit from a contract concluded with the municipality, must disclose in writing full particulars of the benefit to the council.
2. This item does not apply to a benefit which a staff member, or a spouse, partner, business associate or close family member, has or acquires in common with all other residents of the municipality.

1. A staff member of a municipality may not without permission disclose any privileged or confidential information obtained as a staff member of the municipality to an unauthorised person.
2. For the purpose of this item "privileged or confidential information" includes any information-
   
   1. determined by the municipal council or any structure or functionary of the municipality to be privileged or confidential;
   2. discussed in closed session by the council or a committee of the council;
   3. disclosure of which would violate a person's right to privacy; or
   4. declared to be privileged, confidential or secret In terms of any law.
3. This item does not derogate from a person's right of access to information in terms of national legislation.

A staff member of a municipality may not-

1. unduly influence or attempt to influence the council of the municipality, or a structure or functionary of the council, or a council or, with a view to obtaining any appointment, promotion, privilege, advantage or benefit. or for a family member, friend or associate;
2. mislead or attempt to mislead the council, or a structure or functionary of the council, in its consideration of any mutter; or
3. be involved in a business venture with a councilor without the prior written consent of the council of the municipality.

1. A staff member of a municipality may not request, solicit or accept any reward, gift or favour for-
   
   1. persuading the council of the municipality, or any structure or functionary of the council, with regard to the exercise of any power or the performance of any duty;
   2. making a representation to the council, or any structure or functionary of the council;
   3. disclosing any privileged or confidential information; or
   4. doing or not doing anything within that staff member's powers or duties
2. A staff member must without delay report to a superior official or to the speaker of the council any offer which, if accepted by the staff member, would constitute a breach of subitem (1).

A staff member of a municipality may not use, take, acquire, or benefit from any property or asset owned, controlled or managed by the municipality to which that staff member has no right.

A staff member of a municipality may not be in arrears to the municipality for rates and service charges for a period longer than 3 months, and a municipality may deduct any outstanding amounts from a staff member's salary after this period.

A staff member of a municipality may not participate in m election of the council of the municipality, other than in an official capacity or pursuant to any constitutional right.

A staff member of a municipality may not embark on any action amounting to sexual harassment.

Whenever a staff member of a municipality has reasonable grounds for believing that there has been a breach of this Code, the staff member must without delay report the matter to a superior officer or to the speaker of the council.

Breaches of this Code must be dealt with in terms of the disciplinary procedures of the municipality envisaged in section 67(1)(h) of this Act.