1. Local public administration is governed by the democratic values and principles embodied in section 195 (1) of the Constitution.
2. In administering its affairs, a municipality must strive to achieve the objects of local government set out in section 152 (1) of the Constitution, and comply with the duties set out in sections 4 (2) and 6.

A municipality must within its administrative and financial capacity establish and organise its administration in a manner that would enable the municipality to-

1. be responsive to the needs of the local community;
2. facilitate a culture of public service and accountability amongst its staff;
3. be performance orientated and focused on the objects of local government set out in section 152 of the Constitution and its developmental duties as required by section 153 of the Constitution;
4. ensure that its political structures, political office bearers and managers and other staff members align their roles and responsibilities with the priorities and objectives set out in the municipality’s integrated development plan;
5. establish clear relationships, and facilitate co-operation, co-ordination and communication, between-
   
   1. its political structures and political office bearers and its administration;
   2. its political structures, political office bearers and administration and the local community;
6. organise its political structures, political office bearers and administration in a flexible way in order to respond to changing priorities and circumstances;
7. perform its functions-
   
   1. through operationally effective and appropriate administrative units and mechanisms. including departments and other functional or business units; and
   2. when necessary, on a decentralised basis;
8. assign clear responsibilities for the management and co-ordination of these administrative units and mechanisms;
9. hold the municipal manager accountable for the overall performance of the administration;
10. maximise efficiency of communication and decision-making within the administration;
11. delegate responsibility to the most effective level within the administration;
12. involve staff in management decisions as far as is practicable; and
13. provide an equitable, fair, open and non-discriminatory working environment.

In the event of any inconsistency between a provision of this Chapter, including the Code of Conduct referred to in section 69, or a regulation made for the purposes of this Chapter, and any applicable Iabour legislation, the labour legislation prevails.

1. A municipality must, within the framework of and in accordance with relevant provisions of the Municipal Structures Act, this Act and other applicable legislation, define the specific role and area of responsibility of each political structure and political office bearer of the municipality and of the municipal manager.
2. The respective roles and areas of responsibility of each political structure and political office bearer and of the municipal manager must-
   
   1. be defined in precise terms by way of separate terms of reference, in writing, for each political structure or political office bearer and the municipal manager; and
   2. be acknowledged and given effect to in the rules, procedures, instructions, policy statements and other written instruments of the municipality.
3. instruments defining, acknowledging or giving effect to the roles and areas of responsibility of these political structures and political office bearers and the municipal manager must be appropriate to the category and type in which the municipality falls.
4. Terms of reference mentioned in subsection (2)(a) may include the delegation of powers and duties to the relevant political structure or political office bearer or the municipal manager in terms of section 59.
5. When defining the respective roles and areas of responsibility of each political structure and political office bearer and of the municipal manager, the municipality must determine-
   
   1. the relationships among those political structures and political office bearers and the municipal manager, and the manner in which they must interact;
   2. appropriate lines of accountability and reporting for those political structures and political office bearers and the municipal manager;
   3. mechanisms, processes and procedures for minimising cross-referrals and unnecessary overlapping of responsibilities between those political structures and political office bearers and the municipal manager;
   4. mechanisms, processes and procedures for resolving disputes between those political structures and political office hewers and the municipal manager; and
   5. mechanisms, processes and procedures for interaction, between-
      
      1. those political structures and political office bearers and the municipal manager and other staff members of the municipality; and
      2. councillors and the municipal manager and other staff members of the municipality.
6. If a municipality has a decentralised regional administration in any part of its area, the municipality must determine mechanisms, processes and procedures for interaction between the regional management of the municipality and-
   
   1. the ward councillor or other councillor responsible for that part of the municipality's area;
   2. any subcouncil or ward committee, where applicable, in that part of the municipality's area; and
   3. the local community in that part of the municipality's area.

The Code of Conduct contained in Schedule 1 applies to every member of a municipal council.

1. As head of administration the municipal manager of a municipality is, subject to the policy directions of the municipal council, responsible and accountable for-
   
   1. the formation and development of an economical. effective, efficient and accountable administration-
      
      1. equipped to carry out the task of implementing the municipality's integrated development plan in accordance with Chapter 5;
      2. operating in accordance with the municipality's performance management system in accordance with Chapter 6; and
      3. responsive to the needs of the local community to participate in the affairs of the municipality;
   2. the management of the municipality's administration in accordance with this Act and other legislation applicable to the municipality;
   3. the implementation of the municipality's integrated development plan, and the monitoring of progress with implementation of the plan;
   4. the management of the provision of services to the local community in a sustainable and equitable manner;
   5. the appointment of staff other than those referred to in section 56(a), subject to the Employment Equity Act, 1998 (Act No. 55 of 1998);
   6. the management, effective utilisation and training of staff;
   7. the maintenance of discipline of staff;
   8. the promotion of sound labour relations and compliance by the municipality with applicable labour legislation;
   9. advising the political structures and political office bearers of the municipality;
   10. managing communications between the municipality's administration and its political structures and political office bearers;
   11. carrying out the decisions of the political structures and political office bearers of the municipality;
   12. the administration and implementation of the municipality's by-laws and other legislation;
   13. the exercise of any powers and the performance of any duties delegated by the municipal council, or sub-delegated by other delegating authorities of the municipality, to the municipal manager in terms of section 59;
   14. facilitating participation by the local community in the affairs of the municipality;
   15. developing and maintaining a system whereby community satisfaction with municipal services is assessed;
   16. the implementation of national and provincial legislation applicable to the municipality; and
   17. the performance of any other function that may be assigned by the municipal council.
2. As accounting officer of the municipality the municipal manager is responsible and accountable for-
   
   1. all income and expenditure of the municipality;
   2. all assets and the discharge of all liabilities of the municipality; and
   3. proper and diligent compliance with applicable municipal finance management legislation.

1. A municipal council, after consultation with the municipal manager, appoints a manager directly accountable to the municipal manager.
2. A person appointed as a manager in terms of paragraph (a), must have the relevant skills and expertise to perform the duties associated with the post in question, taking into account the protection or advancement of persons or categories of persons disadvantaged by unfair discrimination.

1. A person to be appointed as the municipal manager of a municipality, and a person to be appointed as a manager directly accountable to the municipal manager, may be appointed to that position only-
   
   1. in terms of a written employment contract with the municipality complying with the provisions of this section; and
   2. subject to a separate performance agreement concluded annually as provided for in subsection (2).
2. The performance agreement referred to in subsection (1) (b) must-
   
   1. be concluded within a reasonable time after a person has been appointed as the municipal manager or as a manager directly accountable to the municipal manager, and thereafter, within one month after the beginning of the financial year of the municipality;
   2. in the case of the municipal manager, be entered into with the municipality as represented by the mayor or executive mayor, as the case may be; and
   3. in the case of a manager directly accountable to the municipal manager, be entered into with the municipal manager.
3. The employment contract referred to in subsection (1)(a) must include, subject to applicable labour legislation, details of duties, remuneration, benefits and other terms and conditions of employment.
4. The performance agreement referred to in subsection (1)(b) must include-
   
   1. performance objectives and targets that must be met, and the time frames within which those performance objectives and targets must be met;
   2. standards and procedures for evaluating performance and intervals for evaluation; and
   3. the consequences of substandard performance.
5. The performance objectives and targets referred to in subsection (4)(a) must be practical, measurable and based on the key performance indicators set out from time to time in the municipality's integrated development plan.
6. The employment contract for a municipal manager must-
   
   1. be for a fixed term of employment not exceeding a period ending two years after the election of the next council of the municipality;
   2. include a provision for cancellation of the contract. in the case of non-compliance with the employment contract or, where applicable, the performance agreement;
   3. stipulate the terms of the renewal of the employment contract, but only by agreement between the parties; and
   4. reflect the values and principles referred to in section 50, the Code of Conduct set out in Schedule 2, and the management standards and practices contained in section 51.
7. A municipality may extend the application of subsection (6) to any manager directly accountable to the municipal manager.

A municipality must, on or before 31 October of each year, publish in the media the salary scales and benefits applicable to posts of the municipal manager and every manager that is directly accountable to the municipal manager.

1. A municipal council must develop a system of delegation that will maximize administrative and operational efficiency and provide for adequate checks and balances, and, in accordance with that system, may-
   
   1. delegate appropriate powers, excluding a power mentioned in section 160(2) of the Constitution and the power to set tariffs, to decide to enter into a service delivery agreement in terms of section 76(b) and to approve or amend the municipality's integrated development plan, to any of the municipality's other political structures, political office bearers, councillors, or staff members;
   2. instruct any such political structure, political office bearer, councillor, or staff member to perform any of the municipality’s duties; and
   3. withdraw any delegation or instruction.
2. A delegation or instruction in terms of subsection (1)-
   
   1. must not conflict with the Constitution, this Act or the Municipal Structures Act;
   2. must be in writing;
   3. is subject to any limitations. conditions and directions the municipal council may impose;
   4. may include the power to sub-delegate a delegated power;
   5. does not divest the council of the responsibility concerning the exercise of the power or the performance of the duty; and
   6. must be reviewed when a new council is elected or, if it is a district council, elected and appointed.
3. The municipal council-
   
   1. in accordance with procedures in its rules and orders, may, or at the request in writing of at least one quarter of the councillors. must, review any decision taken by such a political structure, political office bearer, councillor or staff member in consequence of a delegation or instruction, and either confirm, vary or revoke the decision subject to any rights that may have accrued to a person; and
   2. may require its executive committee or executive mayor to review any decision taken by such a political structure, political office bearer, councilor or staff member in consequence of a delegation or instruction.

1. The following powers may, within a policy framework determined by the municipal council, be delegated to an executive committee or executive mayor only:
   
   1. decisions to expropriate immovable property or rights in or to immovable property; and
   2. the determination or alteration of the remuneration, benefits or other conditions of service of the municipal manager or managers directly responsible to the municipal manager.
2. The council may only delegate to an executive committee or executive mayor or chief financial officer decisions to make investments on behalf of the municipality within a policy framework determined by the Minister of Finance.

A political structure, political office bearer, councillor or staff member of a municipality to whom a delegating authority has delegated or sub-delegated a power to dispose of matters falling within the area of responsibility of that political structure, political office bearer, councillor or staff member may, or must if instructed to do so by the relevant delegating authority, refer a matter before the political structure, political office bearer, councillor or staff member to the relevant delegating authority for a decision.

1. A person whose rights are affected by a decision taken by a political structure, political office bearer, councillor or staff member of a municipality in terms of a power or duty delegated or sub-delegated by a delegating authority to the political structure, political office bearer, councillor or staff member, may appeal against that decision by giving written notice of the appeal and reasons to the municipal manager within 21 days of the date of the notification of the decision.
2. The municipal manager must promptly submit the appeal to the appropriate appeal authority mentioned in subsection (4).
3. The appeal authority must consider the appeal, and confirm, vary or revoke the decision, but no such variation or revocation of a decision may detract from any rights that may have accrued as a result of the decision.
4. When the appeal is against a decision taken by-
   
   1. a staff member other than the municipal manager, the municipal manager is the appeal authority;
   2. the municipal manager, the executive committee or executive mayor is the appeal authority, or, if the municipality does not have an executive committee or executive mayor, the council of the municipality is the appeal authority; or
   3. a politics structure or political office bearer, or a councillor-
      
      1. the municipal council is the appeal authority where the council comprises less than 15 councillors; or
      2. a committee of councillors who were not involved in the decision and appointed by the municipal council for this purpose is the appeal authority where the council comprises more than 14 Councillors.
5. An appeal authority must commence with an appeal within six weeks and decide the appeal within a reasonable period.

A political structure, political office bearer, councillor or staff member of a municipality to whom a delegating authority has delegated or sub-delegated a power or duty, must report to the delegating authority at such intervals as the delegating authority may require, on decisions taken in terms of that delegated or sub-delegated power or duty since the last report.

The withdrawal, amendment or lapsing of a delegation or subdelegation does not invalidate anything done as a consequence of a decision taken in terms of that delegation or sub-delegation.

1. Whenever it becomes necessary in terms of section 59(2)(f) to review a municipality's delegations, the municipal manager must submit to the council-
   
   1. a report on the existing delegations issued in terms of section 59 by the council and other delegating authorities of the municipality; and
   2. recommendations on tiny changes to the existing delegations which the municipal manager may consider necessary.
2. If the municipality has an executive committee or executive mayor, the municipal manager must submit the report and any recommendations to the municipal council through the executive committee or executive mayor.

1. A municipal manager, within a policy framework determined by the municipal council and subject to any applicable legislation, must-
   
   1. approve a staff establishment for the municipality;
   2. provide a job description for each post on the staff establishment;
   3. attach to those posts the remuneration and other conditions of service as may be determined in accordance with any applicable labour legislation; and
   4. establish a processor mechanism to regularly evaluate the staff establishment and, if necessary, review the staff establishment and the remuneration and conditions of service.
2. Subsection (1)(c) and (d) do not apply to remuneration and conditions of service regulated by employment contracts referred to in section 57.

1. A municipality, in accordance with the Employment Equity Act, 1998, must develop and adopt appropriate systems and procedures to ensure fair, efficient, effective and transparent personnel administration, including-
   
   1. the recruitment, selection and appointment of persons as staff members;
   2. service conditions of staff;
   3. the supervision and management of staff;
   4. the monitoring, measuring and evaluating of performance of staff;
   5. the promotion and demotion of staff;
   6. the transfer of staff;
   7. grievance procedures;
   8. disciplinary procedures;
   9. the Investigation of allegations of misconduct and complaints against staff;
   10. the dismissal and retrenchment of staff; and
   11. any other matter prescribed by regulation in terms of section 72.
2. Systems and procedures adopted in terms of subsection (1), to the extent that they deal with matters falling under applicable labour legislation and affecting the rights and interests of staff members, must be consistent with such legislation.
3. Systems and procedures adopted in terms of subsection (1), apply to a person referred to in section 57 except to the extent that they are inconsistent with that person's employment contract.
4. The municipal manager must-
   
   1. ensure that every staff member and every relevant representative trade union has easy access to a copy of these staff systems and procedures, including any amendments;
   2. on written request by a staff member, make a copy of or extract from these staff systems and procedures, including any amendments, available to that staff member; and
   3. ensure that the purpose, contents and consequences of these staff systems and procedures are explained to staff members who cannot read.

1. A municipality must develop its human resource capacity to a level that enables it to perform its functions and exercise its powers in an economical, effective, efficient and accountable way, and for this purpose must comply with the Skills Development Act, 1998 (Act No. 81 of 1998), and the Skills Development Levies Act, 20 1999 (Act No. 28 of 1999).
2. A municipality may in addition to any provision for a training levy in terms of the Skills Development Levies Act, 1999, make provision in its budget for the development and implementation of training programmed.
3. A municipality which does not have the financial means to provide funds for training programmed in addition to the levy payable in terms of the Skills Development Levies Act, 1999, may apply to the Sector Education and Training Authority for local government established in terms of the Skills Development Act, 1998, for such funds.

The Code of Conduct contained in Schedule 2 applies to every staff member of a municipality.

1. The municipal manager of a municipality must-
   
   1. provide a copy of the Code of Conduct to every member of the staff of the municipality; and
   2. provide every staff member with any amendment of the Code of Conduct.
2. The municipal manager must-
   
   1. ensure that the purpose, contents and consequences of the Code of Conduct are explained to staff members who cannot read; and
   2. communicate sections of the Code of Conduct that affect the public to the local community.

Municipalities must comply with any collective agreements concluded by organised local government within its mandate on behalf of local government in the bargaining council established for municipalities.

1. The Minister may be subject to applicable labour legislation and after consultation with the bargaining council established for municipalities for the purposes of this Chapter-
   
   1. make regulations to regulate the following matters;
      
      1. the procedure to be followed in appealing against decisions taken in terms of delegated powers and the disposal of such appeals;
      2. the suspension of decisions on appeal;
      3. the setting of uniform standards for-
         

         aa)	municipal staff establishments;
         bb)	municipal staff systems and procedures and the matters that must be dealt with in such systems and procedures; and
         cc)	any other matter concerning municipal personnel administration;

      4. capacity building within municipal administrations;
      5. training of staff members of municipalities, including in-house training, subject to the requirements of the Skills Development Act, 1998 (Act No. 81 of 1998), and the Skills Development Levies Act, 1999 (Act No. 28 of 1999); and
      6. any other matter that may facilitate the application of this Chapter; or
   2. issue guidelines to provide for the following matters;
      
      1. the establishment of job evaluation systems;
      2. the regulation of remuneration and other conditions of’ service of staff members of municipalities, subject to applicable Iabour legislation;
      3. the measuring and evaluation of staff performance;
      4. the development of remuneration grading and incentive frameworks for staff members of municipalities;
      5. corrective steps in the case of substandard performance by staff members of municipalities;
      6. any other matter that may facilitate the implementation by a municipality of an efficient and effective system of personnel administration.
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.