Section 78 assessment advisory services: We provide specialist legal guidance to South African municipalities, organs of state, and private sector partners on the complex statutory requirements of the section 78 assessment under the local government: municipal systems act, 32 of 2000.
Our services ensure your decisions on municipal service delivery mechanisms (SDMS)—whether internal provision or external outsourcing/PPP—are legally sound, transparent, and defensible against legal challenge.
Our legal advisory focus
The section 78 process is critical and highly litigious. Our firm offers targeted legal support throughout the mandatory two-phase assessment:
|
Phase of assessment |
Legal advisory service |
Value to client |
|---|---|---|
|
Phase 1: internal assessment (s. 78(1)) |
Legal review of the mandatory internal assessment report criteria (costs, capacity, impact, labour views). |
Ensures the council’s initial decision to explore internal or external options is legally compliant and informed. |
|
Phase 2: external assessment (s. 78(3)) |
Legal design and oversight of the required feasibility study, focusing on compliance with MFMA and municipal PPP regulations where applicable. |
Guarantees the external options (including service delivery agreements) are assessed against all required statutory criteria (value for money, community views, capacity of providers). |
|
Stakeholder & public engagement |
Drafting of legally required public notices, management of consultation processes (community and organised labour), and ensuring proper recording of views. |
Mitigates the risk of judicial review based on procedural irregularity or failure to consult. |
|
Decision & implementation |
Drafting the final council resolution to approve the SDM and contract, ensuring compliance with both the MSA and the municipal finance management act (MFMA). |
Creates a robust, legally defensible framework for the final service delivery decision and subsequent contract signing. |
Why specialist legal input is crucial
Decisions based on a flawed section 78 assessment often result in costly litigation, project delays, and financial waste. Our expertise ensures that:
- Compliance is guaranteed: we navigate the ambiguities in the MSA and related legislation, protecting the municipality from legal challenges by dissatisfied bidders or labour unions.
- Decisions are defensible: we ensure all statutory criteria and procedural steps are meticulously documented, making your council’s final decision legally sound.
- Risk is mitigated: we identify and resolve issues early, particularly the overlap between section 78 and the requirements for public-private partnerships (PPPS).