Municipalities that fail to submit acceptable development plans could see the national government forcing its hand into their affairs, essentially wiping out their right to govern independently.

This comes as Cooperative Governance and Traditional Affairs (Cogta) Minister Thembi Nkadimeng gazetted new regulations to frame the "institutionalisation" of the District Development Model (DDM) – an approach where national, provincial and local government work together to plan, budget and implement development goals. 

According to the new regulations, the national government can decide how municipalities spend their budgets, which the opposition has flagged as unlawful. 

President Cyril Ramaphosa and Nkadimeng have championed the DDM as a tool to fix ailing municipalities across the country. 

The new regulations would mean that, by law, municipalities must submit their turnaround plans to the national government for approval.

While the regulations are only in draft format, the Democratic Alliance (DA) has already objected to the proposals.

In her written submission, DA MP Eleanore Bouw-Spies said section 151 of the Constitution gives municipalities the right to govern subject to national and provincial legislation.

"The DDM regulations, however, appear to ignore this provision by mandating that One Plans become the primary instrument to influence the reprioritisation of budgets across the three spheres of government.

"This creates significant financial and compliance risks for municipalities. The Municipal Finance Management Act [MFMA] requires that municipalities formulate and implement budget spending priorities in line with their integrated development plans. As such, prescribing that municipalities deviate from the provisions of the MFMA as part of implementing the DDM, and reprioritise their budgets, is unlawful," Bouw-Spies said.

The regulations have been drafted in terms of section 47 of the Intergovernmental Relations Framework Act.

The draft says that institutional arrangements for the DDM must be aimed at sustaining a programmatic approach to cooperative governance and intergovernmental relations centred on One Plans.

The president is the overall "champion" of the DDM and may appoint ministers or deputy ministers as national DDM political champions for each district and metropolitan municipality.

The draft also says the Cogta minister is responsible for the institutionalisation and implementation of the DDM.

The Department of Planning, Monitoring and Evaluation (DPME) is responsible for the country’s planning system, policies and legislation.

"The DPME will provide strategic leadership and technical support in the localisation of national and sectoral plans within identified district and metropolitan One Plans and spaces," the regulations read.

Furthermore, a One Plan must be developed for each district and metropolitan municipality as a long-term intergovernmental implementation protocol.

This plan should outline key intergovernmental catalytic programmes and projects, and a strategic framework to guide government and private sector investment.

"A One Plan may not replace national and provincial development plans, sectoral plans or any legally prescribed development and strategic plan; or a departmental or entity annual performance plan in operation at any of the three spheres of government but need to be aligned with each other," the draft reads.

How will it work?

It is envisaged that each provincial government; metropolitan, district and local municipal council will recommend the One Plan for approval in writing to the minister. If there are any objections to the One Plan, the reasons for objecting to the plan must be submitted in writing to the minister. The minister must submit the approved One Plan to Cabinet for adoption.

The lofty plan to fix South Africa's broken municipalities has cost taxpayers just over R100-million, with the programme earmarked to be in its "institutionalisation phase" until March 2025.

In 2019, the Cabinet approved the DDM approach and agreed that it should be piloted in three places – eThekwini Metropolitan Municipality in KwaZulu-Natal, OR Tambo District Municipality in the Eastern Cape and Waterberg District Municipality in Limpopo.

Under the DDM, all three spheres of government coordinate and integrate development plans and budgets, and mobilise government and civil society's capacity and resources, including business, labour and the community in pursuit of inclusive growth and job creation.