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[F.A.Q.]
Vanuatu Consolidated Legislation - 2006 |
LAWS
OF THE REPUBLIC OF
VANUATU
CONSOLIDATED EDITION
2006
Commencement: 11 July 1994
![Vanuatu%20-%20Decentralization%20Act%20[Cap%20230]00.png](Vanuatu%20-%20Decentralization%20Act%20[Cap%20230]00.png)
CHAPTER 230
Act
1 of 1994ARRANGEMENT OF SECTIONS
PART 1 –
DEFINITIONS
1. Definitions
2. (Repealed)
PART
2 – CREATION OF LOCAL GOVERNMENT REGIONS
3. Establishment of
Local Government Regions
4. Establishment of Local Government
Councils
4A. Division of Local Government Region into Area Council
Divisions
4B. Local Government Councils to be bodies
corporate
4C. Seal
PART 3 –
COMPOSITION, NAME AND DUTIES OF LOCAL GOVERNMENT
COUNCILS
5. Composition of Local Government
Councils
6. (Repealed)
7. Appointment
of Members of Local Government Councils
8. Conduct of
business
9. Procedure for enacting by-laws
10. Standing
orders
11. Setting up of a committee
12. Voting and quorum
13. New
election, dissolution of Local Government Council and delegation of
responsibility
14. Dissolution of Local Government Council and election of
new Council
15. Approved by-laws
16. Publication and commencement of
by-laws
17. Supreme Court to assess the legality of by-laws
18. Procedure
on receipt of by-laws by the
Minister
PART 3A – TERM OF OFFICE
OF MEMBERS OF LOCAL GOVERNMENT COUNCILS
18A. Term of office of members
of Local Government Councils and elections thereto
18AB. Constituencies and
number of elected councillors
18AC. Election
deposits
18B. Disqualification for election or appointment as member of Local
Government Council
18C. Vacation of office
18D. Filling of
vacancies
PART 3B – OFFICERS AND
STAFF
18E. Secretary to Local Government Council
18F. Accountant to
Local Government Councils
18G. Treasurer and other officers
18H. Power to
engage staff
18I. Staff
regulations
PART 3C – POWERS AND
DUTIES OF COUNCILS
18J. General powers and duties of
Councils
18K. Contracts
PART 3D
– INQUIRIES AND SUSPENSIONS
18L. Inquiries and
suspensions
18M. Reductions or refund of
grants
PART 4 –
(Repealed)
PART
5 – POWERS OF LOCAL GOVERNMENT COUNCILS TO MAKE
BY-LAWS
20. Power to make by-laws
21. Power to make by-laws fixing
rates and taxes for issue of licences
22. Power to make by-laws specifying
rates and taxes for local purposes
PART
6 – ALLOWANCES
23. Allowances to members
24. Payment of
gratuities
PART 7 – FUNDING OF
LOCAL GOVERNMENT
COUNCILS
25. (Repealed)
26. Determination
of administration subsidy
27. Grants for material supplies
27A. Financial
year
27B. Local Government Fund
27C. Particulars of the
Fund
27D. Expenditure
27E. Power to raise loans
27F. Trust
Fund
27G. Bank account
27H. Imprest account
27I. Estimate of
expenditure
27J. Failure to approve estimate of
expenditure
27K. Advances
28. (Repealed)
PART
7A – ACCOUNTS AND AUDIT
28A. Accounts
28B. Transfer from
general fund to meet deficiencies
28C. Audit
28D. Powers of auditor to
require production of documents
28E. Auditor to report errors and
deficiencies
28F. Matters required to be mentioned in report
28G. Auditor
may take legal advice
28H. Destruction of any books, etc.
28I. Annual
statement
PART 8 – LOCAL
GOVERNMENT COUNCIL BUDGET
29. Preparation and approval of
budget
30. Council to approve true balanced budget
31. Failure to approve
budget
PART 8A – DECENTRALIZATION
REVIEW COMMISSION
31A. Establishment of Commission
31B. Functions
of the Commission
31C. Powers of the Commission
31D. Work
program
31E. Consultation
31F. Advisory
Committees
31G. Secretariat
31H. Reporting requirements
31I. Government
response
31J. Protection from civil
actions
PART 9 – MISCELLANEOUS
AND TRANSITIONAL PROVISIONS
32. Election and appointment of
members
33. Department of Local Government to assist and advise the
Minister
34. Provisions not to be applicable within Municipalities and their
boundaries
35. Regulations made by the Minister
36. Repeal and
savings
DECENTRALIZATION
An Act to make
provisions for the decentralization and establishment of Local Government
Regions and for matters connected
therewith.
PART 1 –
DEFINITIONS
1. Definitions
In
this Act, unless the context otherwise requires:
"accountant" means the
Public Servant seconded to a Local Government Council under section
18F;
"administration subsidy" means a subsidy provided by the Executive
to a Local Government Council for administration purposes such
as salaries,
accounting and office systems and office equipment;
"by-law" means a
by-law made by each Local Government Council under the provisions of this
Act;
"equipment grant" means a grant by the Executive to a Local
Government Council for development purposes such as agricultural, construction
and maritime projects;
"Executive" means the Executive under Article
39(1) of the Constitution;
"Local Government Council" means a Council
established under section 4 comprising representatives of each local government
region;
"Local Government Region" means a region declared under section
3(1)(a);
"Local Government Region Executive Officer" means an officer
appointed under section 19 of this Act;
"Minister" means the Minister for
the time being responsible for local government or any Minister acting on his
behalf;
"Secretary" means the public servant seconded to a Local
Government Council under section
18E.
2. (Repealed)
PART
2 – CREATION OF LOCAL GOVERNMENT
REGIONS
3. Establishment of
Local Government Regions
(1) The Prime Minister may by
Order:
(a) declare a Local Government Region;
(b) give a name to a Local Government Region;
(c) define the boundaries of a Local Government Region and alter them.
(2) The number of Local Government
Regions to be so declared under subsection (1) shall not be less than 4 and not
more than 6.
4. Establishment of Local
Government Councils
When the Prime Minister declares a Local
Government Region under section 3(1), he shall in the Order establish a Local
Government
Council for that
Region.
4A. Division of Local
Government Region into Area Council Divisions
The Minister on the
advice of each Local Government Council shall by order divide a local government
region into area council divisions
or districts and may alter those divisions or
districts.
4B. Local Government
Councils to be bodies corporate
A Local Government Council shall
be a body corporate with perpetual succession and power to:
(a) sue and be sued in its corporate name; and
(b) purchase, acquire, hold, manage and dispose of movable and immovable property.
4C. Seal
Each
Local Government Council shall have a seal of a design approved by such Local
Government Council which shall be kept in the custody
of the Secretary to the
Local Government Council.
PART 3
– COMPOSITION, NAME AND DUTIES OF LOCAL GOVERNMENT
COUNCILS
5. Composition of Local
Government Councils
Each Local Government Council shall be
composed of elected members and appointed
members.
6. (Repealed)
7. Appointment
of members of Local Government Councils
(1) The Minister may by
Order provide for appointed members of each Local Government Council in respect
of its Local Government Region
and such members shall consist of:
(a) chiefs appointed by the Minister from among persons nominated by representative bodies of chiefs;
(b) women appointed by the Minister from among persons nominated by representative bodies of women;
(c) youth representatives appointed by the Minister from among persons nominated by representative bodies of youth;
(d) church representatives appointed by the Minister from among persons nominated by representative bodies of churches.
(2) The appointed members
–
(a) shall hold office for a period of four years and shall be eligible for reappointment; and
(b) shall be consulted on any matter, question or issue coming before the Local Government Council for its decision.
(3) The
appointed members shall not be entitled to vote at the meetings of the Local
Government Councils.
(4) The appointed members shall not be more than
half the number of elected
members.
8. Conduct of
business
(1) The Local Government Council shall hold its meetings
in public at the Headquarters of the Local Government Region. The Headquarters
shall be designated through an order to be issued by the Minister upon the
recommendation of the Local Government Council.
(2) The Local Government
Council shall hold two ordinary meetings during one calendar year. The first
ordinary meting, being the budgetary
meeting, shall commence on the first
working day in the month of November and may last for a period not exceeding
twenty-one days.
(3) The second ordinary meeting, being the
administrative meeting, shall commence on the first working day in the month of
May and
may last for a period not exceeding twenty-one days.
(4) Apart
from such meetings, the Local Government Council may hold extraordinary meetings
at the request of the Minister or if more
than half of the elected members so
request.
(5) The duration of an extraordinary session shall not exceed
three days.
(6) The Local Government Council shall meet by right on the
first Thursday following the publication of the official results of the
Local
Government Council election. Members of the Local Government Council shall
appoint among themselves a Chairman and no more
than three deputy chairmen. They
shall be appointed by a majority voting. The voting shall be done by secret
ballot.
(7) The Chairman and deputy chairmen shall hold office for a term
of two
years.
(8) (Repealed)
(9) The
Chairman shall preside at all meetings in compliance with the provisions of the
Standing Orders of the Council. Upon evidence
of his absence or incapacity, one
of the deputy chairmen shall, in the order of their appointments, replace him.
The Chairman or
the deputy chairman substituting for him may, if he deems
necessary, request the assistance of any Police Officer to restore order
in the
meeting chamber.
(10) Members of Parliament elected within the Local
Government Region may at the request of the Local Government Council of that
region
attend and address any meeting of that Council on any specific matter or
issue.
9. Procedure for enacting
by-laws
(1) The Local Government Council shall deal with draft
by-laws tabled by any member of the Local Government Council with the Chairman
of the Council.
(2) Draft by-laws and proposals shall be voted on by the
Council after having heard the opinion of the appointed
members.
10. Standing
orders
(1) Each Local Government Council shall make its own
standing orders.
(2) The Local Government Council shall vote on the
approval of the standing orders of the Council after having heard the views of
the appointed members. The Chairman shall draw up the Order of
Business.
11. Setting up of a
committee
A Local Government Council may, from time to time, from
among its members, appoint and dissolve a committee responsible for matters
relating to draft by-laws or for any general or specific purposes which in the
opinion of the Local Government Council would be better
regulated and managed by
a committee. The composition of such a committee shall be proportional to the
various opinions held within
the
Council.
12. Voting and
quorum
(1) All decisions shall be determined by a majority of the
votes of the elected members present. Each elected member present shall
have the
right to cast only one vote.
(2) The quorum required for meetings of the
Council shall be more than half of the total number of elected
members.
(3) In case of a tie vote, the Chairman shall have a casting
vote.
13. New election, dissolution of
Local Government Council and delegation of responsibility
(1) If
for any reason half of the seats of a Local Government Council become vacant, a
new election shall be called within the two
months following the date the latest
seat became vacant.
(2) If this latest vacancy occurs in the last six
months of the normal term of the Council, the Prime Minister shall, upon the
recommendation
of the Minister, issue an order to dissolve the Local Government
Council.
(3) Day-to-day on-going business shall then be attended to by
the Minister or he may delegate this responsibility to a public
servant.
14. Dissolution of Local
Government Council and election of new Council
(1) Should the
normal running of a Local Government Council be impeded, such as being unable to
sit for three consecutive sittings
for lack of a quorum, the Prime Minister
shall, upon recommendation from the Minister, issue an order to dissolve the
Council for
cause.
(2) Elections for a new Council shall be held not
later than six months following the date on which the order was published in the
Official Gazette. During this period, the day-to-day on-going business shall be
attended to by the Minister or he may delegate this
responsibility to a public
servant.
(3) No dissolution shall be made within the next twelve months
following the election of a new Local Government Council which is taking
over
from the one dissolved. However, if during this period the running of the
Council is again impeded on similar grounds as those
in subsection (1) of this
section, the Prime Minister may, upon recommendation of the Minister, issue an
order to temporarily suspend
the Council for a period not exceeding six months.
During this period of suspension the day-to-day on-going business shall be
attended
to by the Minister or he may delegate this responsibility to a public
servant.
15. Approved
by-laws
(1) The Chairman of the Local Government Council shall
submit at the earliest opportunity a copy of all approved by-laws to the Local
Government Region Executive Officer and shall have a copy displayed on the Local
Government Region headquarters notice board.
(2) During fifteen days
following the display of the by-law on the notice board, the population of the
Local Government Region concerned
and the Local Government Region Executive
Officer may submit their complaints on the legality or relevancy of the said
by-law to
the Chairman of the Local Government Council.
(3) At the end of
this fifteen-day period the Chairman of the Local Government Council may then
either:
(a) submit the by-law to the Minister for publication in the Official Gazette if no compliant has been received;
(b) if a complaint is received in that period –
(i) and he thinks that the complaints made may be justified, convene a meeting of the Council to debate the issue;
(ii) but if he thinks that the complaint is not justified or is substantially similar to matters already considered, he shall notify the complainant in writing and may then submit the by-law to the Minister as in paragraph (a) at the expiry of 15 days from such notification.
16. Publication
and commencement of by-laws
(1) Subject to the provisions of
section 18 upon receiving the by-law submitted to him under section 15(3)(a),
the Minister shall
ensure its publication in the Official Gazette. This by-law
shall come into force as from the date of its publication in the Official
Gazette.
(2) Within the fifteen days following the commencement date of
the by-law, if a person feels that the by-law was unfair to him or
if he feels
that the content of the said by-law contradicts the essence of the Constitution
or existing laws, he may request an enquiry
to be conducted on the legality of
the said by-law by a competent court.
(3) The filing of such a request
shall not prevent the by-law from being
implemented.
17. Supreme Court to
assess the legality of by-laws
The Supreme Court shall be the
competent judicial body to assess the legality of by-laws enacted by Local
Government Councils.
18. Procedure on
receipt of by-laws by the Minister
(1) Where the Minister receives
a by-law under the provisions of section 15(3) above, he may either:
(a) proceed with the publication of the said by-law according to the conditions and with the consequences provided for under section 16 above; or
(b) request the Supreme Court to assess its legality. In this case he shall not proceed with the publication of the by-law and shall immediately inform the Chairman of the Local Government Council which enacted the by-law in question.
(2) The Supreme Court may
either:
(a) rule out the whole text or part thereof; or
(b) confirm the legality of the said by-law. In the latter case the Minister shall therefore ensure the official publication of the by-law within eight days following the date of the Supreme Court’s decision. The by-law shall henceforth be enforced according to the conditions specified under section 16, and no other request for assessment of the legality of the said regulation shall be received by the Supreme Court from any persons or body corporate.
PART
3A – TERM OF OFFICE OF MEMBERS OF LOCAL GOVERNMENT
COUNCILS
18A. Term of office of
members of Local Government Councils and elections
thereto
(1) Members of Local Government Councils shall be elected
or appointed as the case may be for a period of 4 years and together with
any
councillor elected or appointed to fill a vacancy shall retire together at the
end of that
period
(2) (Repealed)
(3) (Repealed)
(4) Subject
to the provisions of the Constitution and this Act, the Electoral Commission may
by Order provide for the regulation and
conduct of elections to be held under
the provisions of this Act and, without prejudice to the generality of the
foregoing, may provide
for the regulation and conduct of elections to be held
under the provisions of Act and, without prejudice to the generality of the
foregoing, may provide for –
(a) the date for election of elected members of a Local Government Council. If the Electoral Commission fails to fix such date the election shall take place on a date that is 1 calendar month before the end of the term of office of the members presently in office. If the date is a Saturday, Sunday or public holiday the election shall take place on the next preceding day that is not one of those days;
(b) the qualifications and disqualifications of electors;
(c) the registration of electors in any local government region or in any area council division;
(d) the ascertainment of the qualifications and disqualifications of candidates for election as members of Local Government Councils;
(e) the method of making and disposing of claims or objections in connection with the registration of electors;
(f) the procedure for the nomination of candidates for election as members of Local Government Councils;
(g) the method of election in any local government region;
(h) the determination of any question which may arise whether any person has been elected as a member of a Local Government Council;
(i) the nature of corrupt and illegal practices in connection with elections and penalties in relation thereto:
Provided that no penalty prescribed by any Order made under this paragraph shall exceed imprisonment for a period of 5 years or a fine of VT 100,000 or, both such imprisonment and fine;
(j) such forms as the Commission may consider necessary to be used in connection with elections.
(5) Election of members of Local Government Councils under this Act shall be on the bases of direct universal franchise which shall include an element of proportional representation.
18AB. Constituencies
and number of elected councillors
(1) The Minister may by Order in
writing divide each Local Government Region into several constituencies for the
purposes of a Local
Government Council election.
(2) Subject to
subsection (3), the Minister may by Order in writing prescribe the number of
elected members for each Local Government
Region on the basis that each member
for each constituency must represent at least 1,500 people in that
constituency.
(3) If the Minister is satisfied that the rule in
subsection (2) cannot be complied with for one or more constituencies in a Local
Government Region, the Minister may by Order in writing prescribe the number of
members for that constituency based on each island
or island group in that
region being fairly represented in the Local Government
Council.
18AC. Election
deposits
(1) Subject to subsection (2), the Minister may by Order
in writing prescribe an amount to be deposited by each candidate in a Local
Government Council election.
(2) The amount prescribed cannot exceed VT
20,000.
18B. Disqualification for
election or appointment as member of Local Government
Council
(1) The following persons shall not be qualified for
election or appointment as members of Local Government Councils –
(a) the President;
(b) Judges and Magistrates;
(c) members of Parliament;
(d) members of the police force;
(e) members of the National Council of Chiefs;
(f) public servants;
(g) members of the teaching service;
(h) a person who is in the service of the Local Government Council; and
(i) a municipal councillor.
(2) Any member of
the district council of chiefs, island council of chiefs and area council of
chiefs who holds the position of chairman,
vice-chairman, secretary or
treasurer, shall not be qualified for election as a member of a Local Government
Council.
(3) A Council member shall vacate his seat if any circumstances
arise that, if he were not a member of the Council would cause him
to be
disqualified from election or appointment as
such.
18C. Vacation of
office
If any member of a Local Government Council –
(a) is found to have been unqualified or disqualified for election or appointment to a Local Government Council;
(b) does, or permits or suffers any act, matter or thing which would, under the provisions of section 18B disqualify him for appointment or election;
(c) resigns from the Local Government Council;
(d) fails to attend 3 consecutive meetings of the Local Government Council or of any committee of the Local Government Council of which he is a member, unless he has obtained the prior permission of the Local Government Council to absent himself throughout such period,
he shall cease
to hold office.
18D. Filling of
vacancies
(1) Whenever a vacancy occurs in the office of an
elected member of a Council such vacancy shall be filled in accordance with
Orders
made under the provisions of section 18A.
(2) Notwithstanding the
provisions of subsection (1), if –
(a) a vacancy occurs in the office of a councillor within 6 months preceding the date on which such councillor would ordinarily retire;
(b) the total of unfilled vacancies does not exceed a third of the total number of councillors; and
(c) no local council division will thereby be unrepresented;
such vacancy shall not be
filled under the provisions of this section and such vacancy shall remain
unfilled until the time of the
next ordinary election.
(3) A person
elected under the provisions of this section to fill a vacancy shall hold office
until the date upon which the person
in whose place he is elected would
ordinarily have retired, and he shall then retire.
(4) Whenever there is
a vacancy in the office of an appointed member of a Local Government Council the
Minister shall appoint another
person to fill that vacancy in accordance with
subsection (3).
PART 3B –
OFFICERS AND
STAFF
18E. Secretary to Local
Government Council
(1) The Public Service Commission shall appoint
a fit person, who is a public servant, to be Secretary for each Local Government
Council.
(2) The Secretary shall be the Chief Executive Officer of the
Local Government Council for which he is appointed and shall have the
charge and
custody of and be responsible for all books, records and other documents of the
Local Government Council.
(3) For the avoidance of doubt, no Local
Government Council shall have power to suspend or dismiss the
Secretary.
18F. Accountant to Local
Government Council
(1) The Public Service Commission shall appoint
a fit person, who is a public servant, to be accountant for each Local
Government
Council.
(2) For the avoidance of doubt, no Local Government
Council shall have power to suspend or dismiss the
accountant.
18G. Treasurer and other
officers
(1) Subject to subsection (3), a Local Government Council
shall appoint a treasurer.
(2) A Local Government Council may appoint
such other officers, as it may consider necessary for the proper performance of
its functions,
upon such terms and conditions as it may determine and may define
the powers and duties of such officers.
(3) Until such time as the
Minister is satisfied that suitable persons are otherwise available the
treasurer and such other officers
as he may consider necessary shall be seconded
to a Local Government Council from the public
service.
18H. Power to engage
staff
Subject to section 18G(3), a Local Government Council may
from time to time employ, on such terms and conditions as it may determine,
such
agents, servants and workmen as may be necessary for the proper performance of
its functions.
18I. Staff
regulations
(1) A Local Government Council shall make staff
regulations, which, subject to the provisions of this Act, may make provision
for
all or any of the following matters relating to persons in the service of
the Council other than persons seconded to it –
(a) grades and salary scales;
(b) appointments, promotions, leave, termination of appointments and dismissals;
(c) maintenance of discipline;
(d) disciplinary offences;
(e) interdiction and payment of salary or wages during any period of interdiction;
(f) punishments in respect of disciplinary offences including the withholding or deferment of increments, fines, reductions in rank or salary and deductions from salary in respect of damage to property of the Local Government Council by reason of misconduct or breach of duty by an officer, servant or employee;
(g) training;
(h) payment of allowances; and
(i) terms and conditions of service generally including matters relating to procedures and the duties and responsibilities of officers, servants and employees.
(2) Staff regulations made under
the provisions of subsection (1) shall be published in the
Gazette.
PART 3C – POWERS AND
DUTIES OF
COUNCILS
18J. General
powers and duties of Councils
(1) Every Local Government Council
shall be generally responsible for the good government of its Local Government
Region and shall
do all such things as it lawfully may and as it considers
expedient to promote the health and welfare of the people
therein.
(2) The provisions of this Act relating to the powers and duties
of Local Government Councils are in addition to, and not in derogation
of, the
provisions of any other written law relating to such powers and duties and in
the exercise of their powers and the performance
of their duties in relation to
any matter for which provision is made by other law, a Local Government Council
shall act in conformity
therewith.
18K. Contracts
(1) Subject to the provisions of subsection (2), to any order
made under section 35 and to any conditions or limitations imposed by
its
Standing Orders, a Local Government Council may enter into contracts for the
purpose of any works, services or other matters
which it is required or
empowered to undertake, carry out and manage.
(2) Except as may be
permitted by its Standing Orders, a Local Government Council shall not enter
into any contract –
(a) for the supply of goods or materials; or
(b) for the execution of any works or provision of any services, other than professional services to or for the Local Government Council;
except after publicly calling for tenders for the same.
(3) A contract purporting to be made by
a Local Government Council which is –
(a) sealed with the seal of a local government;
(b) signed by an officer of the Local Government Council duty authorized in that behalf by any resolution or standing order of the Local Government Council,
shall not be invalid by reason only of any failure to observe any Standing Order made under the provisions of this Act.
PART 3D –
INQUIRIES AND
SUSPENSIONS
18L. Inquiries
and suspension
(1) If the Minister –
(a) has cause to suspect that a Local Government Council has failed to observe and perform any of the duties and powers conferred or imposed upon it by the provisions o this Act or any other law; or
(b) has cause to suspect that a Local Government Council has done or performed any act, matter, or thing without due authority; or
(c) is otherwise of the opinion that an investigation should be made into the affairs of a Local Government Council;
he may in his discretion, appoint a person or persons to inquire into such matter.
(2) If upon an inquiry under this
section the Minister is satisfied that the Local Government Council has done or
suffered any of
the act, matter or thing contained in paragraphs (a) and (b) of
subsection (1), he may by directive in writing require the Council
to remedy the
same within such time as he may appoint.
(3) If a Local Government
Council fails to comply with the terms of a directive of the Minister made under
subsection (2) or if the
Minister, having appointed a person or persons to make
an inquiry under subsection (1) considers it expedient so to do, the Minister
may in addition to any other powers conferred upon him by the provisions of this
Act –
(a) suspend the exercise by the Council of any of the powers conferred upon it by this or any other Act for such period as he may think fit; or
(b) dissolve the Council and, in his discretion, appoint or direct the election of new councillors;
and during such period,
or, as the case may be, pending the appointment or election of new councillors,
confer upon a public servant
the exercise of any powers so suspended or of the
powers of the Council so dissolved.
(4) The expenses incidental to
–
(a) any inquiry under this section; or
(b) the exercise of any of the powers of the Council under this section;
shall be a debt due by the Local
Government Council to the Government and shall be paid and discharged out of the
funds or revenues
of the Council in such manner as the Minister shall direct.
Any such direction may include a direction that the expenses shall be
deducted
from any grant payable by the Government to the Local Government
Council.
18M. Reduction
or refund of grants
(1) If on receipt of the report of an auditor,
or of an inspector appointed under the provisions of section 18L(1) the Minister
is
satisfied that any duty or power of a Local Government Council is being
exercised in an improper or inefficient manner the Minister
may in respect of
any such duty or power reduce or withhold any further grants to such Council or
any part of such grants until he
is satisfied that the duty or power will be
exercised in a proper manner.
(2) In any case where the Minister has
reduced or withheld a further grant or part of such grant under the provisions
of subsection
(1) it shall be in the Minister’s discretion at the time he
restores the grant whether he restores any part of the grant that
was reduced or
withheld.
(3) The Minister before reducing or withholding a grant under
subsection (1) shall give the Local Government Council an opportunity
of making
representations to him why such grant should not be reduced or
withheld.
PART 4 –
(Repealed)
PART
5 – POWERS OF LOCAL GOVERNMENT COUNCILS TO MAKE
BY-LAWS
20. Power to make
by-laws
As from the dates they are established, Local Government
Councils are empowered to make by-laws, on the matters listed
below:
(1) Choose the location and be responsible for constructing,
maintaining and managing public facilities such as: primary schools,
health
facilities, bridges and roads (except road network under the responsibility of
the national government), water supply, wharves
and jetties, commercial centres,
libraries, museums and cultural centres;
(2) Management and control of
public market places;
(3) Rules and regulations governing matters
relating to hygiene and public heath in compliance with the general conditions
set out
under the law;
(4) Rules and regulations governing professional
activities relating to the issuing of licences payable to Local Government
Councils;
(5) Rules and regulations governing fishing and conditions
relating to the issuing of fishing licences covering six nautical miles
as from
the low tide foreshore of all islands making up the Local Government
Region;
(6) Set out conditions of the issuing of licences for operating
cinemas, commercial businesses, individual or group land or sea transport
services within the Local Government
Region;
(7) (Repealed)
(8) Clearly
set out the economic development policies and plans of the Local Government
Region;
(9) Outline, create and draw up regulations governing the
environmental protection zones (natural parks, natural reserves or
tourist-attraction
areas) subject to any legislation creating environmental
protected areas in the national interest;
(10) Decide on penalties to be
imposed on persons involved in breaking the by-laws approved by the Local
Government Council. The maximum
amount for such penalties shall not exceed VT
50,000 for each conviction.
21. Power
to make by-laws fixing rates and taxes for issue of
licences
(1) The Local Government Councils shall have the power to
make by-laws fixing:
(a) rates and taxes payable for the issue of licences for professional activities as stated in section 20(5) and (6); and
(b) rates and taxes payable for the landing and take-off of aircraft, landing of ships and boats.
Revenue from these rates and
taxes shall be paid directly to the Local Government Councils.
(2) Where
the Government rates and taxes exist regarding international connections, the
Local Government Councils shall have the power
to make by-laws for additional
amounts which may not exceed 10% of the existing tax. These by-laws must be
specifically endorsed
by the Minister after consultation with the Minister of
Finance.
22. Power to make by-laws
specifying rates and taxes for local purposes
Local Government
Councils shall have the power to make by-laws specifying rates and taxes for
local purposes on the people, properties
and services within their area of
jurisdiction.
PART 6 –
ALLOWANCES
23. Allowances to
members
(1) Members of Local Government Councils and the members
of any committees set up by the Local Government Councils are entitled to
an
allowance the amount of which shall be determined by the Council but shall not
exceed the maximum amount of VT 5,000 per day’s
sitting.
(2) Members of Local Government Councils and the members of any
committees set up by the Local Government Councils are entitled to
a refund of
their travelling and accommodation expenses when travelling to attend Council or
committee meetings as the case may be.
Reimbursement shall not be paid unless
proof of payment is provided. Procedures for reimbursement and calculation of
attendance shall
be specified in the Council’s standing
orders.
(3) (a) There shall be paid to elected and appointed members of
the Local Government Councils, a monthly allowance not exceeding VT
30,000.
(b) The Chairman of each Local Government Council shall be paid in addition to the allowance specified in paragraph (a) a monthly allowance of VT 20,000.
24. Payment
of gratuities
(1) Elected and appointed members of Local
Government Councils shall receive, at the end of their term of office, a payment
of gratuity
and the rate of that gratuity shall be determined by the by-laws
made by the Local Government Councils.
(2) The gratuity payable to each
elected and appointed member under subsection (1) shall not exceed an amount
equal to 15 per cent
of all monthly allowances received by such member during
his term in office.
PART 7–
FUNDING OF LOCAL GOVERNMENT
COUNCILS
25. (Repealed)
26. Determination
of administration subsidy
(1) The amount of the administration
subsidy shall be determined by the Executive, after consultation with the
Minister, each year
during the budget session.
(2) The Minister may, by
written instrument, stipulate the amount of the subsidy to be allocated to each
local government region and
when and to where the funds are to be distributed in
accordance with substantiated accounts provided by the Local Government
Council.
27. Grants for material
supplies
(1) The amount of the equipment grant shall be determined
by the Executive, after consultation with the Minister, each year during
the
budget session.
(2) The Minister may, by written instrument, stipulate
the amount of the grant to be allocated to each local government region and
when
and to where the funds are to be distributed, provided however such sums may
only be distributed to projects previously approved
by the Minister and in
accordance with substantiated accounts provided by the Local Government
Council.
27A. Financial
year
The financial year of a Local Government Council shall be a
period of 12 calendar months commencing on 1
January.
27B. Local Government
Fund
There shall be for every Local Government Council a fund to
be called the "Local Government
Fund".
27C. Particulars
of the Fund
The fund of a Local Government Council shall consist
of –
(a) all local taxes lawfully levied by the Local Government Council;
(b) fees and charges payable in respect of licences and permits which have been lawfully issued or authorized for issue by the Local Government Council, whether under this or any other Act;
(c) all other fees, charges, rents and dues payable to or recoverable by the Local Government Council or to which the Local Government Council is entitled under the provisions of this or any other law;
(d) all fines, penalties and forfeitures recovered by the Council under the provisions of this Act or any other written law or declared to form part of the revenues of or directed to be paid to the Council by the provisions of any written law;
(e) all charges or profits arising from any trade, service or undertaking carried on by the Local Government Council in exercise of the powers vested in it;
(f) interest on moneys invested by the Local Government Council, except where other provision is made in respect thereof under the provisions of this or any other law;
(g) grants paid by the Government under sections 26 and 27;
(h) all rents from lands leased by the Local Government Council;
(i) such other revenues as the Minister responsible for finance may declare in writing to be revenues for the purposes of this section;
(j) all moneys received by way of a duly authorized loan;
(k) gifts and legacies;
(l) proceeds from the sale of Local Government Council property;
(m) any other unusual or temporary income.
27D. Expenditure
A
Local Government Council may, subject to the provisions of this or any other
law, expend moneys in the proper exercise of its duties
and powers and in the
proper performance of matters necessarily incidental thereto or arising there
from, and for the purpose of
meeting its lawful debts and
obligations.
27E. Power
to raise loans
(1) A Local Government Council may from time to
time, –
(a) with the consent of the Minister responsible for finance;
(b) and with the approval of the Head of the Department of Finance, which approval may only be made on the Head being satisfied that a study has shown that the project for which the loan is being sought is viable,
raise loans by way of mortgage, issue
of stock, or any other method, in such amounts not exceeding VT 100,000,000 (one
hundred million)
and on such conditions as the Minister responsible for finance
in each case, may approve and all such loans shall be charged upon
the revenues
and assets of the Local Government Council and shall rank equally without
priority.
(2) Any financial liability to the Government lawfully incurred
by a Local Government Council for the purpose of acquiring any interest
in land
or any works, schemes, undertakings or assets from the Government, and not
discharged by immediate payment, shall be deemed
to be a loan granted by the
Government.
27F. Trust
Fund
(1) There is hereby established a fund to be known as the
"Trust Fund" for each Local Government Council.
(2) Not less than 5% of
the National Government grant to each Local Government Council each year shall
be deposited in the Trust Fund.
(3) The purpose of the Trust Fund is to
provide guarantee for loans provided for under section 27E.
(4) Interest
accumulating from the Trust Fund shall be taken to be part of the Fund and shall
not be used in any way
whatsoever.
27G. Bank
account
(1) All moneys belonging to a Council shall be paid into
such bank as the Council may from time to time appoint.
(2) Subject to
the provisions of section 27H, all moneys paid by a Council shall be drawn from
the Council’s bank by cheque
signed by –
(a) the Chairman; or
(b) the deputy chairman; or
(c) one councillor authorized in that behalf by the Council,
and countersigned by the Secretary.
27H. Imprest
account
(1) A Council may by resolution establish an imprest
account which shall be kept at the bank at which the Local Government Fund
account
is kept.
(2) The imprest account shall be held jointly in the
names of, and operated by, the Secretary and the treasurer.
(3) The
Council shall from time to time fix the maximum amount that may be held at any
time in an imprest account.
(4) Moneys in the imprest account shall be
available only for the payment of casual wages and for emergency
expenditure.
(5) A statement of all payments made from the imprest
account shall be submitted to the Council at its first ordinary meeting after
such payments have been
made.
27I. Estimate of
expenditure
(1) Every Local Government Council shall on or before
the annual meeting to be held during the month of November in every year,
prepare
and approve an estimate of the income and expenditure of the Council for
the next succeeding year. Such estimate must comprise a
balanced
budget.
(2) Every Local Government Council may at any time during the
year for which an estimate has been made cause a revised or supplementary
estimate to be prepared and, where appropriate submitted for
approval.
(3) Re-appropriation of funds referred to in an estimate may be
made from time to time with the approval of the Council.
(4) No
expenditure of local government funds shall be incurred except by or under a
law.
27J. Failure to approve estimate
of expenditure
Where a Local Government Council’s estimate
of expenditure for its succeeding financial year remains not approved by 31
December
the Minister with the approval of the Minister of Finance shall by
order issue the draft estimate as the approved estimates of the
Local Government
Council for its ensuing
year.
27K. Advances
(1) The
Secretary may by warrant under his hand authorize disbursement of monies forming
part of the Local Government Fund for the
purpose of making advances to officers
of the Local Government Council for such purposes and under such terms and
conditions as may
be prescribed in by-laws from time to time.
(2) No
advances whatsoever shall be made by or to councillors of a Local Government
Council from the Local Government Fund or other
funds.
28. (Repealed)
PART
7A – ACCOUNTS AND
AUDIT
28A. Accounts
Every
Local Government Council shall –
(a) cause proper books and accounts to be kept and true regular records entered therein of all financial transactions of the Local Government Council;
(b) have a general account which shall be kept and credited with all moneys not required by this Act or otherwise to be carried to any other account and debited with expenditure in payment of the general debts and liabilities of the Council which are not included in any special appropriation and of the general expenses incident to the administration of this Act and the affairs of the Local Government Council;
(c) have separate accounts which shall be kept of all moneys raised or levied for or appropriated or allocated to or held in trust for any special purpose.
28B. Transfer
from general fund to meet deficiencies
If the balance in any of
the separate accounts referred to in paragraph (c) of section 28A is at any time
insufficient to meet the
lawful charges thereon, the Council may, subject to the
approval of the Minister, transfer such sums as are necessary from the general
account to meet such charges and may at any time repay such advances out of any
excess in the receipts over the liabilities of any
such account, but no transfer
shall be made from any one to any other of such separate
accounts.
28C. Audit
(1)
A Local Government Council may subject to the approval of the Auditor-General
appoint a fit and proper person to be the auditor
of the Local Government
Council at such rate of remuneration as the Local Government Council may
determine for the purpose of auditing
and reporting on the accounts of the Local
Government Council.
(2) If the Auditor-General so directs, a Local
Government Council shall reimburse to the Government such sum in respect of the
Auditor-General’s
expenses as the Minister may fix.
(3) A Local
Government Council shall –
(a) produce to the auditor within 3 months of the conclusion of the year to which they relate all the books and accounts of the Local Government Council together with all deeds, contracts, documents, receipts and vouchers relating thereto;
(b) permit the auditor to inspect all stores and other assets of the Local Government Council as he may require; and
(c) give to the auditor such information, explanation and facilities as he may require to be given to enable him to perform the duties of an auditor.
(4) It shall be the duty of the
auditor to report to a Local Government Council not less than once in each year
separately in respect
of each of the following matters, that is to say, whether
or not –
(a) he has obtained all such information, explanation and facilities as he may have required to be given to enable him to perform the duties of an auditor;
(b) the accounts of the Local Government Council are in order and present a true view of the financial position of the Local Government Council;
(c) separate accounts of all undertakings and other accounts required to be kept by the provisions of this Act have been kept;
(d) due provision has been made for redemption and repayment of all moneys borrowed by the Local Government Council;
(e) due provision has been made for depreciation or renewal of the assets of the Local Government Council.
(5) In addition to
the report required under subsection (4) the auditor shall report to the
Minister and to the Local Government Council
any matter or thing which is
discovered during the course of the audit and which appears to have been done or
performed without due
authority.
(6) The Secretary shall –
(a) within 30 days of the receipt of the auditor’s report on the accounts of the Local Government Council for any year submit the accounts together with such report to the Minister; and
(b) lay the accounts of the Local Government Council for each year together with the auditor’s report thereon before the Local Government Council within 30 days of the receipt of such report or if the Council is not sitting, at its next meeting.
28D. Powers
of auditor to require production of documents
(1) For the purpose
of any audit, an auditor may by notice in writing require any person holding or
accountable for any books, records,
accounts, vouchers, deeds, contracts or
other documents which he may require for the purpose of such audit or
examination to appeal
before him at the time and place specified in the notice
and to produce any such document as aforesaid for his inspection.
(2) Any
such person who fails without reasonable cause to appear and produce any such
documents when required so to do shall be guilty
of an offence and shall be
liable on conviction to a fine not exceeding VT
50,000.
28E. Auditor to report errors
and deficiencies
If the auditor finds the account or statement
submitted for audit to be erroneous or deficient in any particular, he shall
–
(a) report thereon, and forward a copy of his report and findings, to the Minister; and
(b) forward a copy of his report by registered post to the Secretary.
28F. Matters
required to be mentioned in report
The auditor shall, in respect
of the accounts for the full financial year, satisfy himself –
(a) whether or not in his opinion –
(i) due provision has been made for the repayment of loans;
(ii) the value of assets has, so far as the auditor can judge, been in all cases fairly stated;
(iii) due diligence and care has been shown in the collection and banking of income;
(iv) the expenditure incurred has been duly authorized, vouchered and supervised;
(v) any of the moneys or others properties of the Council have been misappropriated or improperly or irregularly dealt with; and
(b) as to any other matters which in his judgment call for special notice or are prescribed.
28G. Auditor
may take legal advice
The auditor may at the expense of the
Council obtain and act upon legal opinion on a question arising in the course of
an audit.
28H. Destruction of any
books, etc.
A Local Government Council may, with approval of the
auditor, destroy used or obsolete receipt books, bank pass books or statements,
cheque books, registers, cash books and documents relating to the accounts of
the Council if they have not been in use for more than
six
years.
28I. Annual
statement
An annual statement showing the financial position as
regards the general and special accounts of the local government fund in a form
approved by the Minister shall be prepared by each Council on or before the 31st
day of May in every year showing the assets and
liabilities of the Council on
the 31st day of December immediately preceding and the income from all sources
and expenditure during
the immediately preceding year. This statement shall be
audited and if found correct shall be certified by the auditor as correct
and a
copy thereof shall be displayed at the Local Government Council
office.
PART 8 – LOCAL GOVERNMENT
COUNCIL BUDGET
29. Preparation
and approval of budget
The Local Government Councils shall approve
their own budget in the form of an order. The draft budget, as has been prepared
by the
Chairman, shall be tabled with the Local Government Council not later
than 1st October of each
year.
30. Council to approve true
balanced budget
The Council shall approve a true balanced budget.
No additional expenditure shall be allowed unless it is offset by new revenue or
an equivalent cut in the approved
budget.
31. Failure to approve
budget
(1) If the Local Government Council fails to approve the
budget during its budgetary meeting or, at the latest, by midnight on 31st
December, the Minister shall issue an order duly countersigned by the Minister
responsible for Finance to release the draft budget.
(2) The ministerial
order shall come into force on the date of its publication in the Official
Gazette.
PART 8A –
DECENTRALIZATION REVIEW
COMMISSION
31A. Establishment of
Commission
(1) The Minister is, by Order in writing, to establish
a Decentralization Review Commission consisting of 3 members.
(2) The
Minister is to appoint a person to the Commission only if he or she:
(a) has the capacity to contribute to reform in the area of local governance, service delivery or public sector reform; and
(b) has relevant experience and/or qualifications; and
(c) is politically independent and impartial.
(3) At least one member of the Commission
must be a woman.
(4) The Commission ceases to exist when its final report
is provided to the Minister under section 31H(2).
31B. Functions of the Commission
The functions of the Commission are:
(a) to review decentralization policies, structures, functions and service delivery relating to all areas of decentralized governance; and
(b) such other functions as expressly provided for in the Commission’s terms of reference as approved by the Council of Ministers.
31C. Powers
of the Commission
The Commission has power to do everything
necessary or convenient to be done for, or in connection with, the performance
of its functions.
31D. Work
program
The Minister is to determine in writing the work program
for the Commission.
31E. Consultation
In
exercising its powers and performing its functions, the Commission must:
(a) consult widely; and
(b) have regard to the traditional systems of governance, in particular the role of chiefs; and
(c) have regard to promoting the role of women in governance and decision making; and
(d) have regard to ensuring a voice for youth in governance.
31F. Advisory
committees
The Commission may establish one or more advisory
committees composed of a broad cross section of the community to assist in the
performance
of its
functions.
31G. Secretariat
The Commission is to be supported by a secretariat.
31H. Reporting
requirements
(1) The Commission is to provide quarterly oral and
written briefings to the Minister.
(2) The Commission must provide to the
Minister on or before 1 July 2001 a written final report on its
review.
(3) The Minister must table a copy of the report in the
Parliament within 5 sitting days of the ordinary session after receiving the
report.
31I. Government
response
(1) The Government must prepare its response to the
Commission’s final report within 6 months after receiving the
report.
(2) The Minister must table a copy of the Government’s
response in the Parliament within 5 sitting days of the ordinary session
after
preparing its response.
31J. Protection
from civil actions
Civil proceedings cannot be brought
against:
(a) a member of the Commission; or
(b) a person acting under the direction or authority of such a member;
in relation to loss, damage or injury of any kind suffered by a person in the course of the proper performance or exercise of the Commission's functions or powers.
PART
9– MISCELLANEOUS AND TRANSITIONAL
PROVISIONS
32. Election and
appointment of members
(1) Elections for Local Government Councils
shall be held during 1994.
(2) Appointment of members of the Local
Government Councils shall be made within 3 weeks following the date of the
election under
subsection (1).
(3) The Prime Minister may in order to
provide for election for the Local Government Councils under this Act, dissolve
any Local Government
Council which continues to be in existence after the
commencement of this Act, in pursuance of section 36 of this Act.
(4) The
date for the elections of the Local Government Councils shall be established by
the Electoral Commission in consultation with
the
Minister.
33. Department of Local
Government to assist and advise the Minister
The Department of
Local Government shall be responsible for assisting the Minister and advising
Local Government Councils on matters
relating to this
Act.
34. Provisions not to be
applicable within Municipalities and their boundaries
(1) The
provisions of this Act shall not apply within Municipality boundaries and
Municipalities are deemed not to be included in
any Local Government
Region.
(2) In subsection (1) "Municipality" means a municipality
established under the Municipalities Act [Cap.
126].
35. Regulations made by the
Minister
The Minister may make regulations not inconsistent with
this Act, for and in respect of matters necessary for the better carrying
out of
the provision of this Act.
36. Repeal
and savings
(1) The Decentralization Act [Cap. 127] is hereby
repealed.
(2) Notwithstanding the repeal of the Decentralization Act
[Cap. 127]:
(a) Local Government Councils established under that Act shall continue to be in existence and the members of those Councils shall continue to remain in office until those Councils are dissolved by the Prime Minister under section 32(3) of this Act;
(b) All regional laws and any statutory orders made under the Decentralization Act [Cap. 127] and in force immediately prior to the coming into operation of this Act, shall so far as they are not inconsistent with the provisions of this Act, continue in force until amended or replaced by by-laws or statutory orders, as the case may be, made under this Act.
Table
of Amendments
Title of Act
Substituted by Act 13 of
1997
1 Substituted by Act 13 of
1997;
amended by Act 17 of
1998
2 Repealed by Act 13 of
1997
4A, 4B, 4C Inserted by Act 13
of 1997
6 Repealed by Act 13 of
1997
8(2), (3) Amended by Act 13
of 1997
8(8) Repealed by Act 13 of
1997
14 Amended by Act 13 of
1997
18A-18M Inserted by Act 13 of
1997
18A(2),(3) Repealed by Act 41
of 2000
18AB, 18AC Inserted by Act
41 of 2000
19 Repealed by Act 13
of 1997
20(7) Repealed by Act 13
of
1997
23(1),(3)(i),(3)(ii) Amended
by Act 13 of 1997
25 Repealed by
Act 13 of 1997
26 Substituted by
Act 17 of 1998
27 Substituted by
Act 17 of 1998
27A-27K Inserted by
Act 13 of 1997
28 Repealed by Act
13 of 1997
28A-28I Inserted by Act
13 of 1997
31A-31J Inserted by Act
17 of 2000
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