PARLIAMENT OF LESOTHO

LOCAL GOVERNMENT 1 2016

STA’TEMENT OF OBJECTS AND REASONS

(Circulated by the Authority of the Minister of Local Government and Chieftainship Honourable Dr. Pontöo Sekatle)

Local Government Act was promulgated in 1997 to provide the legal basis for the establishment and functioning of local councils. It established local government structures at municipal, urban, district and community level. The structures created. enabled-.-the – country’ elected Local Councils in April, 2005. The second democratic local councils were elected in Octobel, 2011 and their term will expire in October, 2016. ‘lhs Act only provided for the establishment of local government structures with non-executive powers, whereby implementation of decisions and resolutions made by these structures would be left for officials to implement without supervision and guidance of any political head.

The current Act does not clearly separate legislative fimctions of the Council from administrative fimctions. Presently, Councillors and officers do not have clearly defined adminisfrative functions as Councillors exercise administrative powers as well. Furthermore, the relationships between Council Secretaries are not legally clarified and the law does not state whether or not the District Council Secretary is senior to other Council Secretaries. They are legally regarded as chief executive officers, which creates the impression that they are of equal status. The current structure of local government is not consistent with the National Decentralisation Policy. The Policy emphasises the need to separate the executive, administrative and legislative powers.

The Local Government Act has to date been amended a number of times and this makes it difficult to read and cross reference in the absence of the amending Acts.

The Local Government Bill 2016 seeks to repeal the existing Local Govemment Act, 1997 with its amendments and consolidate them into one Act to xnake it easier to use. The Bill further provides for the establishment of local governments with autonomy and executive powers as espoused in the National Decentralisation Policy adopted by Cabinet in 2014 to advance the principle of devolution as the main model of decenfralisation. The Bill seeks to restructure local councils, enhance local governance, guide and facilitate the progressive

realisation of the objectives of and the principles that underlie the decentralisation policy in Lesotho.

The proposed Bill seeks to ensure that loca.l governments have autonomy and executive powers as follows –

Office of the Executive Mayor: This office will be headed by a councilor elected from amongst the councilors in their first sitting following local govemment elections. It is at the level of a District Councils, Municipal Council and City Council.

(b) Office of the Deputy Executive Mayor: There will be two Deputy Executive Mayors who will assist the Mayor in discharging his/her duties; one for economie-affairs while the-other-will be for social- affairs of a council. These two deputies will also be drawn from amongst the councilors in [heir first silting following local government elections.

In the Bill in order to ensure that administrative functions are separated from legislative finctions the Bill sets out the following functions —

Office of the Clerk: The Clerk shall be the chief accounting officer of the District Assembly, Municipal Assembly or City Assembly;
Office of the District Executive Secretary, City Manager and Municipal Manager: The District Executive Secretary, City Manager or Municipal Manager is the chief administrative and accounting officer of the District Council, City Council or Municipal Council. Executive Secretaries or Toym Clerks at the Community Councils or Urban Councils shall be answerable to District Executive Secretaries.

The Bill further proposes the establishment of a District Assembly, City Assembly, Municipal Assembly, Community Assembly and an Urban Assembly.

The Bill provides for overall structure of decenfralisation at the level of a district, municipal and city, that will enable deployment of staff following functions decentralised to local governments. It also endeavors to establish District Councils with overall responsibility over community and urban councils found within their jurisdiction. Community and Urban Councils shall be subordinate and perförm functions delegated to them by the District Council.

LOCAL GOVERNMENT BILL, 2016

ARRANGEMENT OF SECTIONS

Sections

PART 1 – PRELIMINARY

Short title and commencement
Interpretati on

PART 11 – COUNCILS

Categories of Councils
Establishment of a-Council

Status of a Council
Council Office

Functions of Councils

PART 111 – LOCAL ASSEMBLIES

Establishment of Local Assemblies
Composition of Local Assemblies
Electoral Divisions
Preliminary arrangements for the constitution of Local Assemblies
Election of Councillors
Commencement of term of office of a Local Assembly
Term of office of Councillors
Refusal or resignation from office
Recall or removal of a Councillor from a District Assembly
Filling of casual vacancies
Firsl meeting of Local Assembly
Election of the Speaker, Deputy Speaker, Chairperson and Vice

• Chairperson

Oath of office of Councillors
Term of office of the Speaker, Deputy Speaker, Chairperson and ViceChairperson
Removal of Speaker, Deputy Speaker, Chairperson or Vice-Chailperson from officc
Meetings
Speaker or Chairperson to preside at Meetings
Quorum and Resolutions
Minutes

PART IV – COMMITTEES AND PLANNING UNITS

Establishment of committees
Standing committees 29.
Joint Committees
Meetings
Functions of a standing committee of finance
Functions of a standing committee on planning
Planning Units
Composition of Plan_ning Units
Functions of the Planning Units
Development planning

PART V – EXECUTIVE AUTHORITY

Exccutivc committees
Composition of executive committees
Powers and duties of executive committees and Mayors
Election and appointment of members of executive committees
Procedure for election of the Executive Mayor
Oath of office of Executive Mayor and Deputy Executive Mayors

PART VI – SENIOR ADMINISTRATLVE OFFICERS

Term of office of the Executive Mayor and Deputy Mayors
Vacancy of office of the Deputy Executive Mayor
District Executive Secretary, City Manager or Municipal Manager to exercise powers of Executive Mayor and Deputy Executive Mayors in certain cases
Appointment of Municipal Manager, City Manager, District Executive Secretary, and the Clerk

Term of office of Municip-al -Managers, City Managers, District Executive Secretaries, and Clerks
Executive Secretary And Town Clerk
Delegation of powers of Town Clerk or Executive Secretary
Conflict of interest

PART Vil – BY-LAWS

Power of Local Assembly to make by-laws
Power to compound offences
Approval and publication of by-laws

PART vill – FUND

Council fund and its constituents
Moneys received by the Council to be lodged with the Bank
Application of the Fund
Order,•cheques for payment out of the fund
Statements of receipts, disbursements on account of the Fund
Power of Councils to borrow on the security of rates and taxes
Form of security
Lilnitation of borrowing powers
Grants
Power to impose and levy rates
Power to impose taxes
Recovery of rates and taxes
Annual accounts
Budget

69. Supplementary budget

Publication and submission of the budget
Financial Statements
Tender Panel
Audit
Inquiry
Suspension or dissolution of a Local Assembly and appointment of Local Government Administrator

PART IX – BOUNDARIES COMMISSION

Establishment of Boundaries Commission
Functions of the Commission

PART X – MISCELLANEOUS PROVISIONS

Regulations
Repeal
A Council Lo be successors of Councils
Saving for existing securities and discharge of debts
Saving for pending actions and contracts
Officers and servants

Rates and assessment
Adjustment of questions not provided for
Power to exclude application of specifled provisions of this Act within specified Limits
This Act to prevail over other laws

Schedule 1

LOCAL GOVERNMENT BILL, 2016

A Bill for

An Act to repeal and replace the Local Government Act, 1997 ¹, to restructure councils; enhance local governance; provide for financial management; guide and facililale [he progressive realisation of decentralisation in Lesotho; and provide for other related matters.

Enacted by the Parliament of Lesotho.

PART 1 – PRELMIIVARY—

Short title and commencement

1. This Act may be cited as the Local Government Act, 2016, and shall come into operation on the date of its publication in the Gazette.

Interpretation

2. In this Act, unless the context otherwise requires-

“Boundaries Commission” means the Boundaries Commission appointed in terms of section 76;

“Chairperson” means a councillor elected in terms of section 18(5) as the presiding officer of a Community Assembly or an Urban Assembly;

“city” means an area declared within the boundaries of a City Council by the Minister in terms of section 4;

“City Council” means a Council established in terms of section 4 for the purpose of local governance in a city;

“City Manager” means a person appointed in terms of section 49 as the head of the administration of a City Council or acting in that capacity;

“Clerk” means a person appointed in terms of section 51 as a secretary to the District Assembly, City Assembly, or Municipal Assembly;

“community area” means an area declared within the boundaries of a

Community Council by the Minister in terms of section 4;

“Community Council” means a Council established in terms of section

4 for the purpose of local governance in a community area;

“CounciE” means a Community Council, District Council, Urban Council, City Council or Municipal Council;

“Councillor” means a member of a Community Assembly, a District Assembly, an Urban Assembly, a City Assembly or a Municipal Assembly, elected in tenns of section 12 or appointed in terms of section 9.

“development plan” means a plan adopted by a Community Assembly or_ ag_ Urban Assembly in terms of section 33(4) and proposed for inclusion in the relevant District Integrated-Deve opment Plan;

“Director of Elections” means a person appointed as such under section

144 of the National Assembly Election Act 2011 ;

“district” means any one of the adminisfrative districts into which Lesotho is divided;

“District Council” means a Council established in terms of section 4 for the purpose of local govemance in a district;

“District Executive Secretary” means a person appointed by the Minister in terms of section 50 as the head of the administration of District Council or acting in that capacity;

“Executive Mayor” means the Executive Mayor of a Municipal Council, District Council, or City Council, and elected in accordance with section 41;

“Executive Secretary” means the officer appointed in terms of the Local Government Service Act, 2008 as the head of the administration of a Community Council;

“financial year” means the period of 12 months beginning on the 1 ^stday of April of each calendar year and ending on the 31 ^stday of March of the following calendar year;

“Fund” in relation to a Council means a Fund established by a Local Assembly under section 54;

‘implementation plan” means a plan which sets out the implementation of the Integrated Development Plan for the relevant financial year adopted by the Executive Committee of the District Council, City Council, or Municipal Council under section 40(2 );

“Integrated deveiopment plan” means the principal strategic planning document for the district, city, or municipality, adopted by the District Assembly, City Assembly, or Municipal Assembly in terms of section

“Local Assembky” means a Community Assembly, Urban Assembly, District. Assembly, City Assembly, or Municipal Assembly, established in terms of section 8;

“Local Government Service Commission” means the Local

Government Service Commission established in terms of the Local Government Service Act, 2008,

“Minister” means the Minister responsible for local government;

“municipality” means an area declared as the boundaries of a Municipal Council by the Minister in terms of section 4;

“Municipal Councik” means a Council established in terms of section 4 for the purpose of local govemance in a municipality;

Municipal Manager” means a person appomted by the Minister in terms of section 48 as the head of the administration of a Municipal Council or acting in that capacity;

‘prescribed” means a term made by regulations;

‘property” means a house, building or other erection as well as fixtures to a house a.nd improvements to, in, over or under land which is held by an owner or any other person holding for the owner and includes the legal interest of that owner in the land;

“Regulations” means the Local Government Regulations made pursuant to this Act;

“rule” means a rule made by the Minister under section 77;

“Speaker” means the Councillor elected in ten-ns of section 18(5) as the presiding officer of a District Assembly, a City Assembly or a Municipal Assembly ; and

“Town Clerk” means an officer appointed in tcrms of the Local

Govemment Service Act, 2008 as the head of the administration of an Urban Council or acting in that capacity;

“urban area” means an area declared within the boundaries of an Urban Council by the Minister in terms of section 4;

“Urban Councik” means a Council established in terms of section 4 for the purpose of local governance in an urban area.

PART 11 – COUNCILS

Categories of Councils

For the purpose of local governance, Councils in Lesotho shall, in accordance with the criteria prescribed in the regulations made by the Minister, be categorised as follows-
- Municipal Councils;
- City Councils;
- District Councils;
- Urban Councils; and

(e) Community Councils.

Establishment of a Council

(1) The Minister shall, by notice published in the Gazette, establish a Council in each area demarcated for that purpose in accordance with section 76.
- The notice establishing the Council shall declare
  - the category of a Council that is established;
  - the boundaries of the Council;
  - the name of the Council; and
  - the number of Councillors as determined in terms of section 9 that will serve on the Asselllbly of the council.
- A Council may be established by the Minister pursuant to subsection (1) in respect of two or •more areas jointly, notwithstanding that such areas are not contiguous and the areas in respect of which a Council is established shall accordingly be deemed to jointly constitute one single Council fbr all purposes ofthis Act.

Status cf a Council

(1) A Council established under this Act —
- shall be a body corporate with pelpetual succession and a common seal;
- shall have the power, subject to this Act, to acquire, hold or sell property; and

lilay sue and be sued by the name assigned to it under this Act.

(2) The common• seal of a Council shall remain in the custody of the District Executive Secretary, City Manager, or Municipal Manger and shall not be affixed to any contract or other instrument on behalf of the Council, except in the presence of the District Executive Secretary, City Manager, or Municipal Manager who shall sign names to such contracts or other instruments in token of their presence.

Council Office

A Council shall establish and maintain an office for the transaction of business.

Functions of Councils

(1) The Minister shall –
- define the filnctions and responsibilities of Councils including the resources to be fransferred to Councils in consultation with the relevant Line Ministries; and
- cause a list of the functions, responsibilities, and resources, as defined, to be published in the Gazette.
- A Council shall, after the transfer of responsibilities and resources contemplated in subsection (l), be the authority within its jurisdiction charged with the regulation, control and administration of all matters related to the relevant ftnctions as defined in terms of subsection (1).

PART LOCAL ASSEMBLIES

Establishment of Local Assemblies

A Council shall have a Loca.l Assernbly.

Composition of Local Assemblies

(1) A Community Assembly shall consist of not less than 7 or more than 20 elected members.
- An Urban Assembly shall consist of not less than 7 or more than 9 elected members.

• A MuhiciÉaFAsSembly shall consist of not less than 7 or more than 13 elected members.
- A City Assembly shall consist of not less than 7 or more than 13

elected members.

A District Assembly shall consist of such number of members as the Minister may, by notice published in the Gazette, determine, representing Community Assemblies and Urban Assemblies within the boundaries of the District Council and such members shall include at least —
- the Chairperson of each Community Assembly and Urban Assembly; and
- a member of each Community Assembly and Urban Assembly elected by the Councillors from amongst themselves.
- Notwithstanding this Act, there shall be one third special seats for women candidates drawn from a party list, which shall be additional to the seats determined from the electoral divisions in a Local Assembly.
- Notwithstanding subsection (1), the composition of a Local Assembly shall also include gazetted chiefs as follows
  - a Community Assembly and an Urban Assembly shall have not more than 2 gazetted chiefs who shall be nominated by other chiefs within the boundaries of the Community Council or Urban Council;
  - a City Assembly shall have not more than 3 gazctted chiefs who shall be nominated by other chiefs within the boundaries of the City Council’,
  - a Municipal Assembly shall have not more than 2 gazetted chiefs who shall be nominated by other chiefs within the boundaries of the Municipal Council;
  - a District Assembly shall have 2 gazetted chiefs who shall be nominated by other chiefs representing all Community Assemblies and Urban Assemblies within the boundaries of the Dist-ict Council.

Electoral Divisions

The boundaries of a Council demarcated in terrns of this Act shall bc divided by the Independent Electoral Commission, by notice published in the Gazette, into the following electoral divisions —
1. a Community Council shall consist of not less than 7 or not more than 20 electoral divisions;
1. an Urban Council shall consist of not less than 7 or not more than 9 electoral divisions;
1. a City Council shall consist of not less than 7 or not more than 13 electoral divisions;
1. a Municipal Council shall consist of not less than 7 or not more than 13 electoral divisions.

Preliminary arrangements for the constitution of Local Assemblies

1 1 . The Minister may, by notice published in the Gazette, issue directives as may be necessary for the purpose of the preliminary arrangements in connection with the constitution of any Local Assembly established in terms of this Act.

Ebection of Councillors

. Where a Local Assembly is to be constituted for any Council under this Act, an election in accordance with the provisions of written law shall be held for the purpose of electing the Councillors of that Local Assembly.

Commencement of term of office of a Local Assembly

(I) The term of office of a Local Assembly shall commence on such a date as the Minister may, by notice published in the Gazette, appoint.
1. The commencement date refelted to in subsection (1) shall not be later than 28 days from the date of declaration of the results of the general election.

Term of office of Councillors

. (1) The term of office of a Councillor elected at a general election shall continue for5 years from the. commencement of the term of office o a Local Assembly.
1. Notwithstanding subsection (1), in the case of a by-election, the member elected shall serve for the period remaining up to the end of the term of office of a Local Assembly.
1. The term of office of a Councillor who was nominated by other

Chiefs shall continue for 5 years from the commencement of the term of office of a Local Assembly and in the case of.a chief who is nominated as Councillor between regular elections he shall serve for the period remaining up to the end of the term.of office of Local Assembly.

Notwithstanding subsection (l) and (3), a Councillor shall remain oxxlce un,ll xe proclamation of the next ordinary elections.

Refusal or resignation from office

(1) Where a person elected or nominated as a Councillor decides for any reason not to serve as a Councillor, he may tender-

(a) a written communication of his refusal to serve in the office of the councillor addressed to the Director of Elections at any time before the date fixed for the first meeting of the Local Assembly to be held after the general election; or

(b) a vvritten communication of his resignation from office addressed directly to the Speåker or Chairperson at any time after such meeting.

A refusal to serve in or resignation Clie office of the Councillor provided for in subsection (1) shall have no effect until such refusal or resignation has been accepted by the Director of Elections or the Speaker or Chairperson, v,’ho shall refuse Co accept such resignation, if there is any enquiry or investigation pending against such Councillor.

(3) Where the Director of Elections or the Speaker or Chairperson accepts the refusal or resignation under [his seclion he •shall send a written communication to that effect to the Clerk, Town Clerk or the Executive Secretary.

(4) A person who became a Councillor by virtue of a party list prepared under section 9(6) shall lose a seat in the Local Assembly when the person céases to be a member of the party that submitted the list from -whic that person was appointed.

Recakl or removal of a Councillor from a District Assembly

(I) A member of a Community Assembly, or Urban Assembly nominated to a District Assembly may be removed from the District Assembly if found guilty of breaching a provision of the Code of Conduct made by the Minister under the Local Government Regulations or failing to perform the duties of a District Councillor.
1. The removal of the nominated member referred to in subsection (I) shall be made in terms of the Local Government Regulations to be made by the Minister.
1. A member of a Community Assembly, or Urban Assembly nominated to a District Assembly may be recalled from the District Assembly by a Community Assembly, or Urban Assembly that nominated him, or chiefs who nominated him.
1. A resolution of the Community Assembly or Urban Assembly to recall a Councillor from a District Assembly shall be supported by two-thirds of all the Councillors in that Community Assembly or Urban Assembly.
1. The decision to remove or recall a Councillor from a District Assembly shall be communicated in writing to the Speaker, who shall also be notified of the successor of such the Councillor.

Filking of casuar vacaucies

(1) Where an elected councillor-
1. refuses, resigns, dies or vacates from his office as .provided for under section 16;
1. ceases to be a councillor; or
1. if a casual vacancy occurs in any other manner in such office,

tiLe Speaker or the uhanperson, Shall send or cause to we sent a written communication to the Director of Elections for the relevant Local Assembly.

The Director of Flections shall, upon receipt of such communication, cause a by-election in accordance with the provisions of written law to be held for the purpose of filling such vacancy.
- If a vacancy occurs in -respect of special seats for women candidates, the Director of Elections shall appoint the next person on the list in order of preference.
- If the next person on the list is not willing or able to be appointed to the seat, the Director of Elections shall appoint the next person on the list after that person in order of preference.
- if there is no person willing or able to be appointed from the list, the seat shall remain vacant until the next election.
- If a casual vacancy occurs in respect of a seat held by a nominated Councillor, the chiefs within the boundaries of the relevant Council shall nominate another person to occupy that seat.

First meeting of Local Assembiy

(I) The Minister shall, after the •holding of a general election, cause the first meeting of the Local Assembly to be convened by notice.
1. The notice referred to under subsection (1) shall, at least 5 days before the date. fixed fbr the meeting, be dispatched. by registered post or delivered to each Councillor.
1. A notice of the first meeting of the Local Assembly shall specify the date, time, and place of the meeting and the date specified shall be within a period of one month after the holding of a general election.
1. Where för any reason the first meeting is not held within the period of one month prescribed in subsection (3), the Minister may, by such further notice, cause to be convened the first meeting on any other date, but such other

prescribed in subsection (3).

At the first meeting of the Local Assembly, the Councillors shall in the case of Municipal Assembly, City Assembly, or District Assembly elect one ox their memuers to be the Speaker and another member to be the Deputy Speaker, and in •the case of a Community Assembly and an Urban Assembly, ouncillors•shal-l- elect one of their members to be the Chairperson and another member to be the Vice —Chairperson.
- The Clerk, Town Clerk, or Executive Secretary, as the case may be, shall preside over the election of the Speaker or Chairperson.
- Whenever the office of the Speaker, Deputy Speaker, Chairperson or Vice-Chairperson falls vacant in any manner other than by removal of the Speaker, Deputy Speaker, Chairperson or Vice-Chairperson under section 21, information of the occurrence of the vacancy shall, forthwith, be given in writing to the Councillors by the Clerk in the case of a Municipal Assembly, City Assembly or District Assembly and the Town Clerk or Executive Secretary in the case of an Urban Assembly or Community Assembly who, after receipt of such information, shall, within fourteen days, proceed to fill the vacancy in the manner prescribed under section 19.

Election of the Speaker, Deputy Speaker, Chairperson and Vice Chairperson

.19. (1) An elected Councillor may, with h1S consent, be proposed and seconded for election as the Speaker, Deputy Speaker, Chairperson or ViceChairperson and the Councillors present shall elect, in accordance with the provisions of subsection (3), a Speaker, Deputy Speaker, Chairperson or ViceChairperson from amongst the Councillors proposed and seconded for election as the Speaker, Deputy Speaker, Chairperson or Vice- Chairperson.

Where only one candidate is proposed and seconded as the Speaker, Deputy Speaker, Chairperson or Vice-Chairperson, the officer presiding at the mecting shall without question declare that candidate to be elected as the Speaker, Deputy Speaker, Chairperson or Vice-Chailvetson.
- Where 2 or more candidates are proposed and seconded for election as the Speaker, Deputy Speaker, Chairperson or Vice-Chairperson, the mode of election shall be by secret ballot and the outcome shall be determined by a simple majority.

Oath of office of Counc.iklors, Speaker, Chairperson, Deputy Speaker, and Vice Chairperson

(1) A Councillor shall, before assuming office, take and subscribe to the oath for the due execution of his duties as a Councillor, which is set out in Schedule 1.

(2) A Councillor may, before taking and subscribing to an oath referred to in subsection (l), take part in the election of the Speaker and Deputy Speaker or in the election of the Chairperson and Vice Chairperson.

A person elected as the Speaker, Deputy Speaker, Chairperson or Vice Chairperson shall, if he has not already taken and subscribed to the oath of a Councillor, take and subscribe to that oath and the oath for the faithful exercise of his official duties, which is set out in Schedule 1 before entering upon the duties of his office.

In the event of a by-election the Councillor so elected shall take the oath within 30 days after the declaration of the by-election results.

I Lie oatms referred to in subsections (1), and (4) shall be administered by-

the Clerk in the case of a Municipal Assembly, City

Assembly, or District Assembly;

the Town Clerk in the case of an Urban Assembly; and
- the Executive Secretary in the case of a Community Assembly.

Term of office of the Speaker, Deputy Speaker, Chairperson and Vic.eChairperson

(1) Thc Spcakcr, Deputy Spea.ker, Q.hailpe.rson or Vice, Chairperson shall vacate his office-
- within 2 days after he has resigned from office in terms of subsection
- if he ceases to be a Councillor; or

if he is removed from office by resolution of the Local Assembly supported by Ovo-thirds of all the Councillors in that Local Assembly.

Business shall not be transacted in the Local Assembly (other than the election of a Speaker, Deputy Speaker, Chairperson or Vice Chairperson) at any time when the office of the Speaker, Deputy Speaker, Chairperson or Vice Chairperson is vacant.
- In the exercise, performance and discharge of the powers, duties or functions conferred or imposed or assigned to him under this Act the Speaker, Deputy Speaker, Chairperson or Vice-Chairperson shall be subject to the general directions of the Local Assembly.
- The Speaker, Deputy Speaker, Chairperson or Vice Chairperson may, at any time without vacating his office as Councillor, resign from the office of the Speaker, Deputy Speaker, Chairperson, or Vice Chairperson in writing to the Clerk, Town Clerk or Executive Secretary and copied to the Minister.

Removal of Speaker, Deputy Speaker, Chairperson or Vice-Chairperson from office

(l) Thc Speaker, Deputy Speaker, Chairperson, Vice-Chairpersofl illay be removed from office by the relevant Assembly on any of the following grounds-

abuse of power;
- corruption; (c) incomp•etence;
- misconduct;

I-ailure or refusal without reasonable justification 10 implement lawful Council rules; and

(f) in the case of the Speaker or Chairperson, failure to call a Local Assembly meeting for tnore than [hree months without reasona.ble cause.

(2) For the purpose of removing the Speaker, Deputy Speaker, Chairperson or Vice Chan-person from office under subsection (l), a written notice signed by not less than half of all members of the Local Assembly shall be submitted to the Clerk, Town Clerk or Executive Secretary—

stating their intention to pass a resolution of the Local Assembly to remove the Speaker, Deputy Speaker,

Chairperson from office on any or all grounds set out in subsection (1);

setting out the grounds for removal, supported by necessary documents, where applicable, on which it is claimed that the Speaker, Deputy Speaker, Chairperson or Vice Chairperson be removed from office.
- The Clerk, Town Clerk or Executive Secretary, shall, within 14 days, acknowledge receipt of the notice and make arrangements for the meeting in which the Local Assembly intends to remove the Speaker, Deputy Speaker, Chairperson or Vice Chairperson from office.
- The Clerk, Town Clerk or Executive Secretary, shall preside at the meetmg for the removal of a Speaker, Deputy Speaker Chairperson or Vice Chairperson.
- The Speaker, Deputy Speaker, Chairperson or Vice Chairperson who is the subject of removal shall be given an opportunity to defend himself against the accusations before a vote is taken on the resolution by the Local Assembly.
- If a resolution is passed, the Clerk, Town Clerk or Executive Secretary, shall, after ascertaining that the provisions of this section and section 21 have been complied with, declare the office of the Speaker, Deputy Speaker, Chairperson or Vice Chairperson, which the person removed was occupying, to be vacant.
- Where the office of the Speaker, Deputy Speaker, Chairperson or Vice-Chairperson is declared vacant under subsection (6), the Councillors present at the meeting shall proceed to the election of, and shall elect one of the elected Councillors to be the Speaker, Deputy Speaker, Chairperson or Vice Chairperson in accordance with section 19.

Meetings

(l) An ordinary’ meeting of the Local Assembly shall be held for the transaction of business once a month.
- The Speaker or Chairperson may convene a special meeting of the Local Assembly on a time and at a place as determined by the Speaker or Chairperson.
- The Speaker or Chairperson shall, whenever requested in writing by the Councillors not less than the quorum prescribed for ordinary meetings of the-LocaLAssembly to-convene a. special meeting for-any purpose specified in such request, convene a special meeting for that purpose by giving a notice of 2 days o any meeting which shall be left at the residence of each Councillor.
- No more than 2 special meetings may be held in one month.
- The procedure for the conduct of an ordinary or special meeting of the Local Assembly shall be set out in the regulations.

Speaker or Chairperson to preside at meetings

(I) The Speaker or Chairperson shall preside at all meetings of the Local Assembly, except when a motion for the removal of the Speaker or Chairperson is under consideration.
- In the absence of the Speaker or the Chairperson, the Deputy Speaker or Vice-Chairperson shall preside at such meetings except, when a motion for the removal of Deputy Speaker or the Vice-Chairperson is under consideration.
- In the absence of the Speaker and Deputy Speaker, or Chairperson and Vice Chairperson, the Local Assembly meeting shall be chaired by such an elected Councillor as the Local Assembly may elect to chair at that specific meeting.

Quorum and resolutions

(1) All matters or questions authorised by this Act or by any. other written law to be decided by a Local Assembly shall, unless the relevant specific provisions expressly state otherwise, be decided by the majority of the Councillors present and voting at any ordinary or special meeting.
- No business shall be transacted at any meeting of the Local Assembly unless it is attended by more than half of the total number of Councillors.
- Where the votes of Councillors present at any meeting are equally divided in regard to a particular proposal, the person presiding over such meeting shall, in addition to his vote as a member, have a casting vote.

Minutes

(1) All acts perfonned, decisions made and orders issued at all meetings:of-aLoZaLAssembly shall- be-entere&in-a book of minutes to be kept for that purpose and shall be signed after eac.h meeting by a person presiding at such lueeting.

The minutes shall be confirmed, with such amendments as may be necessary at the next ordinary meeting of the Local Assembly, and a copy or extracts of the minutes certified by the Speaker or Chairperson as a true copy may be made accessible to the public.

PART IV – COMMITTEES AND PLANNING UNITS

Establishment of committees

A Local Assembly shall establish committees including a standing committee on finance and a standing committee on planning, other standing committees, special committees and joint committees, with such membership, terms of reference, powers, duties, and functions as may be delegated or otherwise conferred, or imposed on it by the Local Assembly under this Act.

Standing committees

(1) A standing committee shall consist of at least three Councillors.
- The term of office of every standing committee shall be of such period as may be determined by the Local Assembly, but not less than half of the term of that Local Assembly and not longer than the term of office of that Local Assembly.
- If during the year any vacancy occurs in the standing committee, the Local Assembly shall at an ordinary or special meeting elect any Councillor to fill that vacancy.
- if the tenn of office of a standing committcc cxpircs 3 or more months prior to the holding of a general election, a new standing committee shall, within one month after the expiration of the standing committee, be elected at an ordinary or special meeting of the Local Assembly.
- The Executive Mayor shall preside over the meetings of both the standing committee on finance and the standing committee on planning and he or she shall be entitled to vote at such meetings and may be present and vote at any meetings of any other standing committee.

(5) A standing committee, other than the standing committee on and the standing committee on annmg • shall elect a cnairperson by ballot at its first meeting.

In the absence of the Executive Mayor from nny meeting of tho standing committee on finance or the standing committee on planning or from any joint meeting of that committee and any other standing committee, and in the absence from such other committee of the chairperson elected under subsection (7), the members of the committee or committees concerned shall elect a chairperson for the meeting from amongst themselves.

The quorum for any meeting of a standing committee shall be 3 members.

The quorum for any joint meeting of 2 or more standing committees shall be one-third of the total number of the members of such standing committees; but at least one member of each standing committee shall be present.

Special committees

(1) The Local Assembly may constitute a special committee for the purpose of inquiring into and reporting, within such period as the Local Assembly may determine, upon any matter relevant to the affäirs of the Local Assembly.
- -The Local Assembly shall appoint the members to a special cornrniLLee conleinplaled in subsection (1) from amongst the Councillors or partly from amongst the Councillors and partly from other persons.
- At the time of constituting a special committee, the Local Assembly shall nominate the chairperson and determine the number of members to form the quorum.
- A special committee shall continue to function until it has reported to the Local Assembly on any matter refe1Ted to such committee under subsection (l) and such report has been finally considered by thc Local Assembly.

Joint committees

(I) Where the mandate of any Council overlaps with the mandate of any other Council, it may make arrangements, by mutual consent, with such other Council for [he constitution of a joint committee consisting of any number of Councillors as may be determined by the relevant Local Assemblies.
- At the time of constituting a.joint committee, the Local Assemblies -involved shall determime_the period. in which such _joint . committee shall continue to filnction, nominate the chairperson, determine the quorum for the meetings of a joint committee, and rnay delegate any of [heir powers or duties, other than the power to raise any loan, to levy any rate or impose any tax to such joint committee.

Meetings

(l) Meetings of the committees shall be held at the office of the Local Assembly or one of the Local Assemblies, as the case may be, or at such other place as the committee may direct and any such committee shall at any such meeting have access to the books, deeds, contracts, accounts, vouchers and other documents and papers of the Local Assembly or Local Assemblies.

Functions of a standing committee on finance

(l) A standing committee on finance shall have the following powers and functions-
- to consider the estimates of income and expenditures required to carry out the mandates of a Council;
- to consider the financial implications of proposals from the standing committee on planning and other committees of the Local Assembly and communicate its findings to the appropriate committees;

to consider the financial implications of implementation plans prepared by the Executive Committee and communicate its findingé to the Executive Committee;

(d) to review the annual income and funds available to a Council;

to make recommendations to the Local Assembly regarding the Committee’s findings with respect to anv matters that fall within its mandates; and

(f) to undertake such other functions or duties as may be delegated to it by the Local Assembly.

Functions of a standing committee on planning

(1) A standing committee on planning under a Community Assembly or Urban Assembly shall have the following powers and duties-

(a) to consider development projects proposed by the Councillors;

to-ensure-that full-earikiilt.atiöfi täkes pla-e,e. With” all-the “local stakeholders including village committees where they exist and any other interested authorities within the jurisdiction of the Local Assembly;

to seek and receive reports concerning the location of the proposed projects and any other relevant information from any individual or a group of individuals;

(d) to seek and receive assistance from technical deparånents regarding the formulation of development proposals;

to prepare development proposals together with estimates of the capital and recurrent costs of proposed plans and a phased programme of the required capital expenditure and submit them to the standing committee on finance for consideration of their financial implications;

(f) to submit draft development plans to the appropriate Urban Assembly or Community Assembly for consideration;

to recommend to the appropriate Urban Assembly or Community Assembly any changes, additions and modifications to the draft development plans; and

(h) to undertake such other fimctions as may from time to time be required by the Local Assembly.

A standing committee on planning under a District Assembly, City Assembly, or Municipal Assembly shall have the following powers and duties –
- to seek and receive. draft integrated development plan from the respective District, City, and Municipal Planning Units;
  - to consider the aforesaid draft and to ensure that full consultation takes place with all t.he stakeholders;
  - to seek and receive assistance from technical deparfinents regarding the proposed integrated development plan;

to submit the proposed integrated development plan together with any additions, changes and modifications to the -stan mg committee “öfl flha-néé^W“foi• -cönSidefation- -of – ifs financial implications;

to finalise the drafting of the proposed integrated development plan and submit it to the respective District Assembly, City Assembly, or Municipal Assembly for approval;
- to recommend to the appropriate District Assembly, City Assembly, or Municipal Assembly any changes, additions and modifications to the integrated development plan; and

to undertake such other ftnctions as may be required by the Local Assembly.

A District Assembly, City Assembly, and Municipal Assembly shall, within a time period prescribed by the Minister, adopt an integrated development plan.
- A Community Assembly and each Urban Assembly shall, within a time period prescribed by the Minister, adopt a development plan for consideration by the District Planning Unit and the District Assembly.

When adopting the Integrated Development Plan, the Disfrict Assembly shall consider the development plans, as proposed by the Community Assemblies and Urban Assemblies within its jurisdiction and consolidated and reviewed by the District Planning Unit.
- The Local Assembly, standing committee on planning and the Planning Unit may follow the principles stated in section 37 when formulating a development plan or integrated development plan.

Planning units

There is established a District Planning Unit for each district, a City Planning Unit for each city, and a Municipal Planning Unit for each municipality.

Composition of planning units

(l) The Minister shall-
- determine the composition of a District, City, and Municipal Planning-Unifä-s=m-äy- be necess&y; äi•id
- cause. such determination to be published in the Gazette,
- In the exercise of powers conferred on him in subsection (1), the Minister shall —
  - take into consideration the principles of development planning set out in section 37(1);
  - take into consideration the functions of planning units set out in section 36;
  - consult with Line Ministries and other stakeholders;
  - consider the progress made in respect of decentralisation; and
  - take into account the need to ensure that marginalised groups are enabled to make representations.

Functions of the planning units

(1) A District Planning Unit shall have the following functions-
- to examine and consolidate development plans proposed by the Community Assemblies and/or Urban Assemblies;
- to consult with Line Ministries and other stakeholders before and after drafting an integrated development plan;
- ‘co draft an integrated development plan for the district;
- to ensure that a draft integrated development plan is reasonably consistent with the national development plan;

to submit a draft integrated development plan to the District Assembly’s standing committee on planning for consideration; and

(f) to undertake such other functions as may from time to time be required by the District Assembly.

A City or Municipal Planning Unit shall have the following functions –

(a) to -draft än fritz-gfätöd- devélöPffiéEit- plan-for the •city ormunicipality, as the case may be;

to ensure that a draft integrated development plan is reasonably consistent with the national development plan;
- to ensure that full consultation takes place with all the stakeholders;
- to submit a draft integrated development plan to the City or Municipal Assembly’s standing committee on planning for consideration; and
- to undertake such other fimctions as may from time to time be required by the City Assemblv or Municinal Assemblv.

Development planning

(1) The following principles shall guide the Local Assembly, standing committee on planning and the Planning Unit in the performance of their duties in terms of sections 7, 33 and 36-
- development planning at the district, city, or mumcipal level shall be integrated, participatory, evidence-based and resultsfocused;
- development planning shall be focused on addressing the priority needs of citizens, taking into consideration the national strategic development priorities and the specific needs and priorities of the people living in the Council area;
- innovative area-based planning shall be accorded special consideration during prioritisation;
- local and national planning shall be coordinated in order to utilise the scarce resources efficiently;

special needs of marginalised groups shall be accorded special consideration during prioritisation.

The authorities involved in planning shall ensure that the principles of development planning set out in subsection (1) are observed.
- The integrated development_plm guides decision making by the relevant
  - District Council and other councils within the district; (b) City Council; or

The integrated development plan may be amended by the relevant District Assembly, City Assembly, or Municipal Assembly.
- The development plan and the integrated development plan shall at

least include —

an assessment of existing levels of development in the Counclx area;
- the Local Assembly’s vision for the long term development of the Council area;
- the development priorities for its elected term;
- thc Local Assembly’s development strategies;

key performance indicators and targets for each of the strategies referred to under paragraph (d); and

(f) a financial plan, which shall include a budget projection for at least the next 3 years.

PART V EXECUTIVE AUTHORITY

Executive committees

The executive authority of a District Council, City Council, or Municipal Council shall vest in the Executive Committee.

Composition of Executive Committees

The Executive Committee shall consist of the following members(a) the Executive Mayor who shall be the Chailperson;
- the Deputy Executive Mayor who shall .be in charge of economic development affairs; and

another Deputy Executive Mayor who shall be in charge of social development affairs.

Powers and duties of executive committees and Executive Mayors

(1) The Executive Committee is the principal committee of the District Assembly, City Assembly, or Municipal Assembly and as such it shall exercise general direction and control over the administrative arm of the District Council, City Council, or Municipal Council.

\Vithout limiting the generality of subsection (1), the Executive Committee shall, in addition to powers and functions specifically provided in this Act, have the following powers and fimctions –
- to formulate implementation plans on the basis of an integrated development plan;
- to develop a set of criteria for evaluating progress in the execution of implementation plans;

to monitor and evaluate progress against the set criteria in terms of paragaph (b);

(d) to call for, receive and consider reports from the District Executive Secretary, City Manager, or Municipal Manager; to report to the District Assembly, City Assembly, or Municipal Assembly on all decisions taken by the Executive Committee; and

District Assemblv, City Assembly, or Municipal Assembly may delegate to it in accordance with the provisions of this

Act.

The Executive Mayor shall perform the following finctions(a) preside at meetings of the Executive Committee;

(b) assign specific duties to Deputy Executive Mayors in relation to the fiznctions of the Executive Committee;

(c) give general directives to the District Executive Secretary, City Manager, or Municipal Monoger regarding the administration of the Council;

(d) perform ceremonial fiinetions ähd exercise powers delegated to the Executive Mayor by the District Assembly, City AsseLnbly, or Municipal Assembly or the Executive Committee.

A Deputy Executive Mayor shall exercise the powers and perforn•l the duties of the Executive Mayor if the Executive Mayor is absent or not available or if the office of the Executive Mayor is vacant.
- The Executive Mayor may delegate duties to the Deputy Executive Mayor.

Election and appointment of members of executive committees

(1) At the first meeting of the District Assembly, City Assembly, or Municipal Assembly and after the election of the Speaker and Deputy Speaker, elected Councillors shall elect from among themselves the Executive Mayor.
- The Executive Mayor shall appoint the Deputy Executive Mayor responsible for economic development affairs and Deputy Executive Mayor responsible for social development affairs.
- Members of executive committees shall, unless removed from office in accordance with the provisions of this Act, vacate their respective offices if they cease to be District Councillors, City Councillors, or Municipal Councillors.

Procedure for election of the Executive Mayor

(l) Any clcctcd Councillor may, with his consent, be proposed and seconded for the election as Executive Mayor and the Councillors present shall thereupon elect in accordance with the provisions of subsection (2), the Executive Mayor from amongst the Councillors proposed and seconded for election as Executive Mayor.

(2) Where only one candidate is proposed and seconded as Executive Mayor, the officer presiding at the meeting shall without question declare that candidate to be elected as Executive Mayor.

Where 2 or more candidates are proposed and seconded for election as Executive Mayor, the mode of election shall be by secret.ballot and be detennined -by a

Oath of office of Executive Mayor and Dcputy Executive Mayors

(1) A pers•on elected as Executive Mayor or appointed as Deputy Executive Mayor shall, if he or she has not already taken and subscribed to the oath of a Councillor, take and subscribe to that oath and then take and subscribe to the oath for the faithful exercise of his official duties, which is prescribed in Schedule I before entering upon the duties of his office.
- The oaths referred to in subsection (1) shall be administered by the Clerk.

Term of office of the Executive Mayor and Deputy Mayors

(1) The Executive Mayor shall vacate his office —

when he or she resigns from office in terms of subsection (3) or section 46(7);

if he or she ceases to be a Councillor otherwise than by the proclamation of the next ordinary elections;
- when a District Assembly, Municipal Assembly, or City

Asscrnbly first meet after the ordinauy elections, or

if he or she is removed from office by resolution of the Local Assembly supported by simple majority of all the Councillors in that Local Assembly in accordance with the nrocedure prescribed by the Minister.
- No business shall be transacted in the Local Assembly (other than the election of Executive Ma.yor) at any time when the office of the Executive Mayor is vacant.
- The Executive Mayor may, at any time without vacating his office as Councillor, resign from the office of Executive Mayor by written communication to the Speaker and copied to the Minister.

Vacancy of office of the Deputy Executive Mayor

Th@öffice bf the Deputy Executive-Mt-yor-shali become-vacant —

if he ceases to be a Councillor otherwise than by the proclamation of the next ordinary elections;

when a District Assembly, Municipal Assembly, or City

Assembly first meet after the ordinary elections;

if the Executive Mayor removes him from office with or without justification;
- if the Executive Mayor resigns or is removed from office; or

on the appoinfrnent of any other Councillor to the office of the Executive Mayor.

District Executive Secretary, City Manager or Municipal Manager to exercise powers of Executive Mayor and Deputy Executive Mayors in certain cases

Where a Council is unable to discharge its functions by reason of the Executive Mayor and Deputy Executive Mayors ceasing to hold office, the Disfrict Executive Secretary, City Manager, or Municipal Manager, shall, during any period that elapses between the occurrence of the vacancies in respect of those offices and the filling of [hose vacancies in accordance with the provisions of this Act, exercise, perform and discharge all the rights, privileges, powers, duties and finctions vested in, or conferred or imposed on; the Executive Committee by this Act or by any other written law.

PART – SENfOR ADMINISTRATIVE OFFICERS

Appointment of Municipal Manager, City Manager, District Executive Secretary, and the Clerk

(1) The Minister shall, in consultation with the Prime Minister, appoint a Municipal Manager, City Manager, District Executive Secretary, or Clerk.

Term of office of Municipal Managers, City Managers, District Executive Secretaries, and Clerks

(1) All appointments made in terms of section 47 shall be on fixed-term contracts and the Minister shall prescribe the duration of such appointments in the Regulations.
- A Municipal Manager, City Manager, District Executive Manager, or Clerk may resign his position by letter addressed to the Minister.
- The Minister may, terminate the appointment of a Municipal Manager, City Manager, District Executive Secretary, or Clerk on the following grounds —
  - serious misconduct;
  - ill health;
  - incompetence; or
  - operational requirements
- The Minister shall prescribe the procedure for termination of appointments.

Executive Secretary and Town Clerk

(1) There shall be an Executive Secretary for the Community Assembly and Town Clerk for the Urban Assembly who shall-
- be in charge of the administrative arm of the Urban Assembly or Community Assembly;
- provide clerical support to Urban Assembly and its committees or Community Assembly and its committees;
- be an “officer” in terms of the Local Government Service Act, 2008.
- The Town Clerk or Executive Secretary shall be responsible to the District Executive Secretary for the administrative affairs of the Urban Council or Community Council.
- The Town Clerk or Executive Secretary shall be responsible to the Chailperson for the maintenance of records, files, registers, and accounts of the Urban Assembly or Community Assembly.

Without limiting the generality of subsection (l), the Town Clerk and Executive Secretary shall have the following functions –

to advise the Chairperson and Councillors on rules, practices, and procedures of the Local Assembly;
- to administer the oath or affirmation of office of the Chairperson and the Councillor;
- to keep and circulate the minutes of the meetings of the Urban Assembly or Community Assembly;
- to maintain records, a record of votes, by-laws, and other documents of the Urban Assembly or Community Assembly; and
- to perform such other functions as are prescribed in this Act or the directives of the District Executive Secretary or the Chairperson.

Dekegation of powers of Town Clerk or Executive Secretary

(1) A Town Clerk or the Executive Secretary may, by general or special order or in writing, delegate to any of his immediate subordinates any of the powers, duties or ftmctions conferred upon, or vested in him as Town Clerk or Executive Secretary, by this Act or any other written law and such delegation shall be communicated to the Chairperson and District Executive Secretary.
- Copies of orders made under this section shall be kept at the office of the Council to which they relate and shall be open for inspection and available for sale to the public.
- The exercise, discharge or performance by any such officer of any power, function or duty delegated to him by the Town Clerk or the Executive Secretary, shall be subject to such conditions and restrictions, and limited to such purpose, or purposes, as may be specified in the order, and any such delegation tna.y al any time be varied or revoked by order of the Town Clerk or the Executive Secretary.

Conflict of interest

(l) A Councillor, officer or servant of any Council shall disclose any private interest, whether such interest be direct or indirect, which he has in any process or decision of the council.
- A Councillor, officer or servant who fails to comply with the provisions of commits—on offence and – shall be liable on

conviction to a fine not exceeding M 5000, 00 and shall be disqualified from sitting as a member of the Local Assembly or from holding any office or employment under the Council.

A Councillor, officer or servant shall not, whether directly or indirectly, have private interest in any process or decision of the Council.
- Where a Councillor, officer or servant of the Council has any private interest in any contract or work made with or for the Council, and took part in such contract or work, he commits an offence and is liable on conviction to a fine not exceeding M 5,000.00 and he shall be disqualified from sitting as a member of the Local Assembly or from holding any office or employment under the Council.
- Notwithstanding subsection (2), a person being a minority shareholder of any incorporated company shall not be liable to such fine or disqualification by reason only of any contract between such company and the Council or of any work executed by such company for the Council.

PART Vll – BY-LAWS

Power of Local Assem biy to make by-laws

(1) A Local Assembly shall have the power, subject to national legislation, to make, adopt, amend, vary, or rescind by-laws necessary for the purpose of the exercise of its powers and discharge of its duties under this Act.
- Nofivithstonding the generality of the provisions ill subsection (1), the Local Assembly may make by-laws in respect of all or any of the following mat-ters-
  - lat Ed and [y, iuc,tuding the regulation and management of places for public recreation;
  - public health, environment, and sanitation;
  - itinerant vendors, including supervision of licences, regulation or prohibition of the sale of any article in any specified place;
  - thoroughfares including the cleaning, watering and lighting the traffic—instreets and thoroughfares including the weight and the speed of vehicles and prevention or restriction of the use, of vehicles upon any bridge, road or street or in any place where such use may be attended with danger to the public, or may be likely to damage such bridge, road or street;
  - the prevention, abatement, supervision and regulation of obstructions, encroachment, projections and other interference;
  - the abatement of nuisance, including the regulation and control of the operation of loud speakers, amplifiers and other Instruments automatically or mechanically producing or reproducing sound; and
  - burial grounds.
- A by-law made by a Local Assembly may provide for such penalty by way of a fine or imprisonment for its contravention in the following manner
  - a fine not exceeding M 1000.00 or imprisonment for a period not exceeding 6 months, in the case of an individual; and
  - a fine not exceeding M 5000.00 in the case of a corporate body, for any act or omission constituting such contravention;
  - in the case of a continuing contravention an additional fine not exceeding M 1000.00 in the case of an individual; and

not exceeding MI 000.00 in the case of a corporate body, for everyday, during which the contravention continues after a conviction by a court of competent jurisdiction or after service of a written notice from the Executive Mayor or Chairperson or other authorised officer directing attention to such contravention.

Power to compound offences

( n When a person contravenes any by-law made under section 50 and where such a person has not been previously convicted, the District Executive Secretary, City Manager, Municipal Manager, TöVVif¯

Clerk shall compound such offence, if there is admission of guilt, for a sum of money equal to one-föurth ofthe maximum fine imposable för such offence.

Any sum of money received by the Council under subsection (1) shall be credited to the Fund of the Council.

Approval and publication of by-laws

(1) A by-law, amendment, variation or rescission of any by-law under this Act shall have no effect until –
- the Minister has certified that it does not conflict with any national law; and
- the certification is published in the Gazette.
- A by-law made under this Act shall be published in the Gazette with the certification required under subsection (1) (a) and it shall take effect upon such publication.

PART – FUND

Council fund and its constituents

(1) A Council, for its general financial purpose, shall establish a District Council Fund, City Council Fund, Municipal Council Fund, Urban Council Fund, or Community Council Fund (in this Act referred to as “the Fund”).
- There shall be payable into the Fund-
  - the fines and penalties imposed under this Act;
  - subject to any special appropriation made by the Minister, all grants alloca.ted to the Council by the Minister;
  - all rates, taxes, duties, fees and other charges levied under the authority of this Act;
  - all sums realised by sales, leases or other transactions of the Council;

all revenue derived by the Council from any property vested in the Council, or by the administration of any utility services;

(f) all sums derived from any source of revenue made over to any Council to which the Council is the successor in pursuance or in supposed pursuance of any repealed enacünenL•,

all sums and sources of revenue from time to time appropriated or made over to the Council by the Minister;

(h) all donations, gifts, grants or other sums otherwise accruing to the Council in the course of the exercise of its powers, duties and functions;

all sums and sources of revenue, from time to time, appropriated or made by order to the Council by the National Assembly, whether by resolution or otherwise.

Moneys received by the Council to be lodged with the Bank

(I) In this section “approved bank” means a bank specified by the Minister, by notice published in the Gazette, as a bank in which the moneys of a Council, may be deposited.
- All Moneys received by a Council and payable into the Fund shall be lodged with an approved bank, and shall be credited to an account entitled “the Fund”.

A.ppiica.tian of the Fu.nd

There shall be paid out the established

all sums incun•ed by the Council in the exercise of its powers and tho discharge of its filLIC.Lions and duties under this Act, or any other enactment or any regulation, rule or by —law made in this Act;

all sums which the Council is authorised or required to refund by or under this Act or any written law;
- all expenses incurred by the Council in the establishment and maintenance’ of utility services;
- all expenses incurred by the Council, the Executive Mayor, Deputy Executive May_or, Chairperson, Viéé^ZCfiüPöfiöi1, Town Clerk, Executive Secretary, or any officer of a Council in the exercise of its or his powers and the discharge of its or his functions and duties under this Act, or any other written law or any regulation, rule or by-law made under this Act;

all salaries, wages and allowances of officers, servants and Councillors of the Council.

The Minister shall determine the allowances payable to the Councillors.

Order, cheques for payment out of the fund

All orders or cheques for the payment of money out of the Fund shall be signed by the City Manager, Municipal Manager, or Disfricf Executive Secretary, as the case may be, and by any of the two officers specially authorised by the Local Assembly for that purpose, and the bank in which the fund is established may pay orders or cheques against the said Fund which are so signed.

Statements of receipts, disbursements on account of the Fund

At each meeting of a Local Assembly, the Executive Mayor or Chairperson, as the case may be, shall cause a statement of receipts and disbursements on account of the Fund from close of the previous term up to the close of the month preceding that in which the meeting takes place to be submitted to the Local Assembly and the statement, together with the minutes of the proceedings of the meeting, shall be forwarded to the Minister.

Power of CouneiEs to b0E’h^tcw security of rates [axes

(1) The Council may subject to the limits as may be prescribed by the Minister borrow from the Govemment or any person or body of persons, whether incorporated or not, such sums of money as may be necessary for any of the purposes of the Council-

(a) where the approval of the Minister shall not be necessary for borrowing any such sums if the amount outstanding in respect of all loans already raised by such Council does not exceed the total income received by such Council during the 2 years immediately preceding the year in which the •sum is to be borrowed.

(2) A loan raised by the eounci+sha-H-be subject to suchxatewofhterestand such conditions for the repayment thereof as may be specified by the Minister by regulations, but in the case where the illLe1esl tales ate higher than those prescribed by the Minister, such loan may not be raised except with the approval of the Minister.

(3) For the purpose of securing the repayment of the amount borrowed by a Council and in the interest accruing the Local Assembly may, with the approval of the Standing Committee on Finance, mortgage and assign to the lender or lenders, by whom or on whose behalf such sum or any part of the sum may be lent, the proceeds of any rate or tax levied or imposed under this Act or any portion of the tax, or any property belonging to the Council, or any other source of income accruing to the Council.

Ok security

The form and manner of execution of any security given for the purpose of any loan, given under this Part, the mode and order of repayment of any sums borrowed, and the arrangement from the liquidation of any loans shall be such as may be prescribed, by rules or by-laws made under this Act.

Limitation of borrowing powers

The amount at any time outstanding in respect of all loans due from any Council, whether raised under the authority of this Act or any other enactment, shall not exceed in the aggregate five times the fair average annual income received by the Council from all rates, taxes, property and other sources of income for 2 years, or in the case of the Council which has not been in existence for 2 years, five times its income for one year as appraised by the Council, subject to the approval of the Minister.

Grants

(l) A Council may, in order to implement its development programme, make a written application to the Minister for the allocation of a grant.
- An application under sub-section (1) shall be submitted in such fon•n as may be prescribed by the Minister, containing such particulars, together with such documents as the Minister may determine.
- The Minister shall evaluate the merits of such application having regard to the development priorities of that Council, and recommend such application to the Minister responsible for finance.
- Where the Minister of Finance considers such application and allocates a sum of monies by way oEgrant-in-respect of– an-.applicetion-made under sub-section (1), such monies shall be credited to the Fund of the Council.

Power-to impose and levy rates

(1) A Council may, subject to limitations, qualifications and conditions as may be prescribed by the Minister, impose and levy a rate on any property situated within its jurisdiction.
- Where a Council is empowered to make, impose, or levy a rate or rates on any property in any area, the Minister may, by an order published in the Gazette, declare that the provisions of the Valuation and Rating Act, 1980²shall apply for the making, imposition, levy and payment of the rate or rates which may be made or levied by that Council for that area in respect of such year as shall be specified in such order, and of every subsequent year.
- Where the provisions of the Valuation and Rating Act, 1980 have, by an order under sub-section (2) been made applicable to any Council for any area, that Council and that area shall be a rating authority and a designated area respectively, for the purpose of the Valuation and Rating Act, 1980.
- Where any limitation, qualification or condition is prescribed by the Minister under sub-section (1) in relation to the power of a Council to make and levy a rate, nothing in the Valuation and Rating Act, shall be deemed to modify or affect the limitation, qualification or condition so imposed;

Power to impose taxes

(1) The Minister shall publish in the Gazette a list of items that are subject to any tax, levy or service charge that a Council may impose and levy within its jurisdiction and specify the maximum amount that may be taxed, levied or charged in respect of such items.
- The Council may, subject to such limitations as nnay be prescribed by thc Ministcr, imposc a tax, levy or service charge in respect of items published under subsection (1).

Recovery of rates and taxes

(l) Any rate, tax or service charge due and payable under this Act, is a debt due to the Council and is payable to the Council by the person liable for such rate, tax or service charge.
- 1 lie Council may make such arrangements as It considers appropriate to facilitate the collection of such rate, tax or service gharge.„

Annual accounts

A Council shall cause to be prepared, annually and in writing, a true account of all the moneys received and paid by virtue of this Act during the financial year.

Budget

(1) A Local Assembly shall annually adopt a budget, in such format and within the timeframes as may be prescribed by the Minister.
- The budget shall contain-
  - details of the proposed expenditure set out in items under appropriate heads; and
  - realistically anticipated income, distinguishing between property rates and other sources of income.
- The Local Assembly shall not budget for a deficit.
- Together with adopting the budget, the Local Assenlbly shall adopt the rate • or rates necessary for the purpose of providing for the proposed expenditure.

Supplementary budget

(1) A Local Assembly may, in such format and within the timeframes as may be Prescribed by the Minister, adopt a supplementary budget when it becomes necessary to

(a) address the consequences of material under-collection of revenue during the cun•ent year;

appropriate additional revenues that hove become available over and above those anticipated in the budget;

authorise unforeseen and unavoidable expenditure;
- authorise the utilisation of projected savings under one head towards spending under another head; and correct any errors in the budget.
- . Rates and tariffs mentioned under section 66 (1) m.y_ not be

•increased during a financial year.

Publication and submission of thc budget

(1) A copy of every annual or supplementary budget of the Council shall be kept in the office of the council for inspection by the public.
- A copy of the annual or supplementary budget, within 14 days after adoption shall be submitted to the Minister.

Financial statements

(1) A District Executive Secretary, City Manager, or Municipal Manager shall —
- submit on a monthly basis, an income and expenditure statement to the Local Assembly;
- at the end of each year, submit to the Local Assembly, a detailed financial statement reflecting the financial status of the Council.

Tender Panel

72. (1) There shall be a tender panel in each district, city, or municipality which shall provide tender services to the Council.

(2) A Tender Panel shall

consist of at least 6 members who shall be appointed by the District Executive Secretary, City Manager, or Municipal

Manager at least one of whom shall be designated as a

Chaizperson by the District Executive Secretary, City Manager, or Municipal Manager;

be a procurement unit in terms of the Public Procurement Regulations 2007³and its operations shall be regulated by the Public Procurement Regulations 2007.

Audit

73. (1) The accounts of a council shall be audited once in each financial year by the Auditor-General or such other professionally qualified auditor as may be appointed by the Auditor-General.

For the purpose of any audit and examination of accounts under this Act, the auditor may, by notice in writing, re uire the roduction before

him bf any book, deed, contract, account, voucher, and any other document and paper which he may consider necessary, and may require any person holding or accountable for any such book, deed, contract, account, voucher, document, or paper to appear before him at the audit and examination or adjournment and to make and sign a declaration in respect of the book, deed, contract, account, voucher, document, and paper.

A person who neglects or refuses to produce a book, deed, contract, account, voucher, document or paper, or to make or sign any declaration when required to do so under subsection (2), commits an offence and is on conviction liable to a fine not exceeding M 1000.00, and a further fine not exceeding M 500.00 for each day during which the commission of the offence is continued after he has been convicted of such offence.
The Minister may, at any time, cause to be examined or audited, the accounts or records of the Council or any part thereof, but this shall not affect the holding of the annual audit as provided for in this section.

Inquiry

74. Where the Minister has reason to believe that maladministration, fraud, corruption or any other serious malpractice has occurred or is occurring in a Council, the Minister may institute a deparfrnental inquiry into the matter.

Suspension or dissolution of a Local Assembly and appointment of Local Government Administrator

75 . (1) Whenever by reason of the refusal, failure or inability of a Local Assembly to adequately discharge all or any of its functions, the Minister considers it necessary or expedient in the interest 01 local administration to do so, he may, by order published in the Gazette^w

appoint an. officer from the Local Government Service or from the public service to be the Local Government Administrator for that Local Assembly; and
- notwithstanding this Act —

suspend all Councillors of the Local Assembly from performing all of their finctions as Councillors and empower the Local Government Administrator to discharge all the finctions of the Local Assembly; and

(ii) after an inquiry held under section 74 and with the approval of the Prime Minister—dissolve them Local Assembly and direct the holding of elections within ninety days or such other period as may be determined by the Minister with the concurrence of the Prime Minister from the date of the dissolution.

A function of the Local Assembly discharged by a Local Govem-ment Administrator under subsection (l) shall be deemed to have been discharged by the Local Assembly in accordance with this Act.
The Local Government Administrator shall relinquish office upon the lifting of the suspension or the election of a new Local Assembly.

PART IX – BOUNDARIES COMMISSION

Estabfishment of Boundaries Commission

(1) The Minister may, where he considers it necessary to do so, establish, by a notice published in the Gazette, a Boundaries Commission (in this Act referred to as “the Commission”).
- The Commission shall consist of a Chairperson and 4 other members who shall be appointed by the Minister from among persons who are suitably qualified for such appointment.
- A Commissioner shall hold office for a period not exceeding 5 years.
- If a C01Q111issioner vacates his office prior to the expiration of his tern-I of office, his successor shall hold office only for the unexpired portion of the term.

‘lhe Minister Illa•y a Couuuiss•iouer from office if sufficient reasons exist for his removal.

A Commissioner may resign from his office by letter addressed to the Minister.
- The Chairperson shall preside at a meeting of the Cotntnission and in the absence of the Chairperson from the meeting the members present at the meetino shall elect another member to preside at the meetings

(8)” -Every question that comes up for consideration-shall-be-determinedby the majority of the members of the Commission present at the meeting.

The quorum for any meeting of the Commission shall be 3 members.
- The Commission may regulate its own procedure.
- There shall be paid to a Commissioner such remunerations as the Minister may, with the concurrence of the Minister of Finance, determine.

Functions of the Commission

(I) The Commission shall submit to the Minister recommendations for the demarcation or re-demarcation of the boundaries of the Council, taking into

consideration —

the need to increase access to public services and democratic participation;
- national strategic development priorities; (c) patterns of human settlement and migration;

(d) commuting and dominant transport movements; (e) other institutional, functional, or sectoral boundaries;

administrative capacity at Council level; and
- administrative consequences of new boundaries.
- In performing its functions under subsection (l), the Commission may
  - regularly review existing boundaries of Councils;
  - receive and consider proposals from the public for the revision of Council boundaries; and
  - summon any person to attend any meeting of the Commission or produce any documents in his possession and to procure and receive all such evidence written or oral, and to examine himas a witness as the Commission may think it necessary or uesnⁿable to procure or examme;
- The Minister shall lay before the Cabinet¯any proposals or recommendations made by the Commission and approved by him, for the revision of any Council boundaries.
- The expenses of the Commission including the remuneration of the Commissioners and all other expenses incurred by them in the performance of their duties under this Act shall be defrayed out of moneys appropriated by the National Assembly for the purpose.

PART X – MISCELLANEOUS PROVISIONS

Regulations

.71 N The Minister may make regulations for the purpose of giving effect to this Act, and in respect of all matters required or stated to be prescribed or in respect of which regulations are required or authorised to be made.
- Without prejudice to the generality of the provisions of subsection

(1), the Minister may make regulations —

for the procedure for the conduct of business of Local Assemblies;
- for the accounting and financial procedures of Councils; and
- for the functions of and matters to be dealt with or by a

Council.

The Minister may make regulations or rules applicable to all Councils or any class of Council or to one or more specified Council or Councils.

Repeal

(1) The Local Government Act of 1997 is repealed.
- Notwithstanding the repeal of the Local Government Act, 1997, all rules, regulations, orders or proclamations which are in force at the time of the commencement of this Act, and made under the repealed Act shall continue in force as if they have been made under the provisions of this Act, and all such rules, regulations, orders, proclamations may be varied, amended or replaced by a provision of this Act.

A Council to be successors of Councils

(1) With effect from the date of the establishment of a new Council under this Act, the new Council shall be the successor of any existing Council to the extent that the existing Council is responsible for any area incorporated in the area of the new Council.
- With effect from the date of the establishment of a new Council, there shall be deemed to be transferred to that Council-
  - all such property of the existing Council, as may be situated within its jurisdiction;
  - the whole of the funds of the existing Council or where the new Council comprises a part only of the jurisdiction of the existing Council, such part of the funds as the Minister may determine; and
  - all the rights, powers, duties, debts, liabilities and obligations of the existing Council in so far as they relate to the area incorporated into the new Council.
- Except in so far as provision is otherwise made by this Act, all references in any enacfrnent, or in any order, rule, regulation or by-law made under it, or in any document or insfrument executed or issued pursuant to it, to any class of Council, or to any particular Council, shall be construed as though !hey were references to the Council constituted under this Act, or in the case of a reference to any particular Council, to the Council which is the successor to

such Council for the puposes of the matter in question as from the date of the establishment of any such Council or Councils.

For the pulposes of this section and sections 81, 82 83. and 84 the expression Council means Municipal C,’ouncil, Urban C.ouncil, District Council, and Community Council established under [he Local Govemment Act, 1997.

Saving for existing securities and discharge of debts

(l) Nothing in this Act shall prejudicially affect any loans raised by a (P,ouncil on the security of any rate or tax or of any property by this Act transferred to any Council; and all debts so secured, as well as all unsecured debts, liabilities and obligations incurred by any Council in the exercise of any of the powers in relation to any property fransferred from such Council to a new Council by or-under this Acf, shall be discharged, paid and satisfied-by—sueh Council.
- It shall be the duty of every Council whose powers, duties and liabilities are to be transferred to any Council by this Act to liquidate so far as practicable, before the date of such transfer, all current debts and liabilities incurred by such Council.

Saving for pending actions and contracts

(I) All suits, prosecutions, appeals or other legal proceedings, civil and criminal, instituted, or which might have been instituted, by or against a Council at the date of commencement of this Act may, subject to the provisions of this Act and any other written law, be continued or instituted by or against a Council established under this Act.
- All contracts, deeds, bonds, agreements, notices or other instruments entered into, issued, or made by any Council and subsisting at the time of the constitution of a new Council under this Act for the administrative area of such Council, and affecting any such powers, duties, liabilities, obligations, or property as are by this Act transferred to such Council, shall be of full force and effect against. or in favour of that Council, and may be enforced or acted upon as fully and effectually as if the said Council had been a party to or had made or issued such contracts, deeds, bonds, agreements, notices or other instruments.

Officers and servants

(I) Subject to the Local Government Service Act, 2008, the officers and servants of every Council to which a Council established under this Act is the successor shall, upon the constitution of the Council become officers and servants of the Council, and shall hold their offices under terms and conditions as set out by the Local Government Service Commission or by any Council.

(2) The Council may distribute the business to be performed by any officers or servants referred to in subsection (i ) in such manner as the Council may deem just. and every such officer or servant shall perform such duties in relation to that business as may be directed by the Council.

Rates and assessment

(1) All rates and taxes imposed by a Council to which any Council is the successor as may be due at the date of the constitution of the Council may be enforced and recovered in the same manner as the rates and taxes imposéd by the Council.

„•-All-assessments made or adopted by the Council for the pytpose of any rate referred to in subsection (1) shall continue in force until revised by the Council in a manner provided by this Act.

Adjustment of questions not provided for

In connection with the preliminary arrangements necessary for bringing this Act into operation, and for such other period as the Minister may consider necessary, either generally or with reference to any special matter or matters either throughout Lesotho or in any specified place or area, the Minister, by notice published in the Gazette, may issue all such directives as he may consider necessary with a view to providing for any unforeseen or special circumstances, or to determining or adjusting any question or matter for the determination or adjusting of which no provision or no effective provision is made by this Act.

Power to exclude application of specified provisions of this Act within specified Limits

The Minister may, by notice published in the Gazette, declare that any specified provision of this Act shall not apply, either in whole or in part, within the adminisfrative limits of any area for which a Council is established under this Act.., or within any specified area comprised in such adminisfrative limits.

This Act to prevail over other kaws

The provisions of this Act shall, subject to the Constitution of Lesotho, have effect notwithstanding anything contained in any other law and accordingly in the event of any conflict or inconsistency between the provisions of such other law and this Act, the lfrovisions of this Act shall prevail over such other law.

SCHEDULE

(section 20 and 43)

Oath of Executive Mayor, De^tuk€-v Executive Mayor, ChairpersoEE or Vice Chairperson

. …..do swear/solemnly affirm that I shall faithfully exercise the functions of the Executive Mayor, Deputy Executive Mayor, Chairperson or Vice Chairperson of . Municipal, City, District, Urban or Community Council and shall uphold, preserve, protect and defend the Constitution and observe the laws of Lesotho and that I shall promote the welfare of the people of this Municipal, City, District, Urban or Community Council. (So help me God)

Oath (if Speaker, Deputy Speaker, Executive Mayor, Deputy Executive—Mayor, Chairperson, or Vice Chairperson

. . . . . . . Do swear/solemnly affirm that I shall faithfully exercise the functions of the Speaker, Deputy Speaker, Executive Mayor, Deputy Executive Mayor, Chairperson, or Vice Chairperson.

Local Government Bill, 2016

PART 1 – PRELMIIVARY—

Interpretation

PART 11 – COUNCILS

PART Vll – BY-LAWS

PART – FUND

Grants

Tender Panel

Audit

Inquiry

SCHEDULE

NOTE

About US

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