DCoG, National Treasury, and SALGA Issue Transition Framework for Municipal Councils

Posted 07 November 2026 Written by Acts Online
Category Local Government

Brought to you by SAnews: The Department of Cooperative Governance (DCoG), National Treasury, and the South African Local Government Association (SALGA) have issued joint guidelines outlining statutory compliance obligations, administrative handover requirements, and governance rules for incoming municipal councils.

In terms of section 29(2) of the Local Government: Municipal Structures Act, No. 117 of 1998, the municipal manager—or an official designated by the provincial MEC responsible for local government—must convene the first meeting of a newly elected council within 14 days after election results are declared. District municipalities are required to hold their inaugural council meetings within 14 days after all local council representatives have been appointed. Local councils must finalise the appointment of their district representatives within 14 days of declaration.

Statutory Timelines and Institutional Reviews

The joint guidelines set specific regulatory milestones for newly constituted councils across several local government statutes:

  • Executive and Committee Elections: Inaugural meetings must conduct the election of the Speaker, Executive Mayor, Mayor, or Deputy Mayor, and determine the composition of Executive Committees or Mayoral Committees under the uniform representation formula prescribed by the Local Government: Municipal Structures Act, No. 117 of 1998.
  • System of Delegations: Under the Local Government: Municipal Systems Act, No. 32 of 2000, newly elected councils must review the municipal system of delegations within one year of taking office. Existing delegations remain legally operative until revoked or amended.
  • Ward Committees: Pursuant to the Local Government: Municipal Structures Amendment Act, No. 3 of 2021, metropolitan and local municipalities must establish ward committees within 120 days of the elections and inaugural council meetings.
  • Staff Establishments: Municipalities must review staff establishments within 12 months in accordance with the Municipal Staff Regulations, 2021, ensuring alignment with funded budgets and approved Integrated Development Plans (IDPs).

Handover Reports and Financial Accountability

Outgoing municipal leadership must submit two separate handover dossiers to provincial cooperative governance departments, National Treasury, DCoG, and SALGA prior to the first council meeting. The Political Handover Report covers outgoing governance performance and coalition risk assessments. The Administrative Handover Report, compiled by the Accounting Officer and Chief Financial Officer, must detail the municipal financial position, three-year audit outcomes, creditor commitments (specifically Eskom and water boards), and the status of consequence management under section 32 of the Local Government: Municipal Finance Management Act, No. 56 of 2003 (MFMA) regarding unauthorised, irregular, fruitless, and wasteful expenditure.

The guidelines explicitly confirm that political coalition agreements cannot supersede the Constitution, the MFMA, the Municipal Structures Act, or the Municipal Systems Act. Municipal funds, personnel, and assets may not be utilised for coalition negotiations or political caucus activities. Accounting officers and officials who authorise expenditure in violation of these prohibitions face financial misconduct proceedings and personal statutory liability under the MFMA.

What this means for you, your business, or your clients

  • For yourself: Legal, compliance, and governance professionals must track the strict 14-day and 120-day statutory windows to advise clients on the procedural validity of inaugural council resolutions and committee appointments.
  • For your business: Professional service firms, auditors, and municipal advisory practices must prepare for administrative scrutiny, as outgoing administrations must disclose all active advisory mandates, procurement contracts, and section 32 MFMA non-compliance registers during the transition.
  • For your clients: Contractors and municipal vendors must anticipate cash-flow prioritization shifts, as incoming councils are bound by National Treasury directives to prioritize funded budget balances and settle Eskom and water board arrears before processing disputed or irregular creditor claims.

Originally published at https://www.sanews.gov.za/south-africa/new-municipal-councils-face-governance-and-service-delivery-priorities

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