Municipal entities are mechanisms used by the City of Tshwane to deliver services to Tshwane community. Each of these entities is regarded as an “organ of state” and must comply with a legislative framework to ensure accountability, transparency and consultative processes, similar to the requirements that apply to the City of Tshwane in its own right.
The City of Tshwane’s municipal entities are accountable to the City of Tshwane, which established these entities. The entities must perform according to a service delivery agreement and performance objectives set by the City of Tshwane.
A new legislative framework for municipal entities came into effect through amendments to the Municipal Systems Act (MSA) and the passing of the Municipal Finance Management Act (MFMA). The new provisions of the MSA, including Chapter 8A, came into effect on 1 August 2004. The bulk of the provisions of the MFMA took effect on 1 July 2004 with some transitional provisions based on municipal capacity. (???unclear how this relates to the rest of the sentence – maybe changing it into a new sentence (adding a verb) will make it clear.)
The MSA defines three types of entities that may be established by a municipality with effect from 1 August 2004, namely private company, service utility or multi-jurisdictional service utility. Before the MSA and MFMA requirements took effect, municipalities used various arrangements to deliver services and manage functions. These included trusts, section 21 companies and private companies. In view of the legislative framework, municipalities are required to review these structures and either convert them to an entity or disestablish them if they are no longer required. A review would cover such things as the appropriateness of governance structures to provide effective municipal oversight, accountability and transparency.
City of Tshwane Municipal Entities
The following are City of Tshwane municipal entities:
1. Tshwane Housing Company