| (1) | A municipality must in terms of its performance management system and in accordance with any regulations and guidelines that may be prescribed— |
| (a) | set appropriate key performance indicators as a yardstick for measuring performance, including outcomes and impact, with regard to the municipality's development priorities and objectives set out in its integrated development plan; |
| (b) | set measurable performance targets with regard to each of those development priorities and objectives; |
| (c) | with regard to each of those development priorities and objectives and against the key performance indicators and targets set in terms of paragraphs (a) and (b)— |
| (i) | monitor performance; and |
| (ii) | measure and review performance at least once per year; |
| (d) | take steps to improve performance with regard to those development priorities and objectives where performance targets are not met; and |
| (e) | establish a process of regular reporting to— |
| (ii) | the public and appropriate organs of state. |
| (2) | The system applied by a municipality in compliance with subsection (1)(c) must be devised in such a way that it may serve as an early warning indicator of under-performance. |
[Commencement date of section 41: 1 July 2001]
