NOTIFICATION 7th August, 2002. No. Legis:l(18)/70-IX-6057-62.—The following Ordinance by the Governor of the North-West Frontier Province is hereby published for general information:-
THE NORTH-WEST FRONTIER PROVINCE LOCAL GOVERNMENT (FOURTH AMENDMEND) ORDINANCE, 2002. N.-W.F.P. ORDINANCE NO. XXVI OF 2002. AN ORDINANCE further to amend the North-West Frontier Province Local Government Ordinance, 2001. WHEREAS it is expedient further to amend the North-West Frontier Province Local Government Ordinance, 2001 (N.-W.F.P. Ord. No. XIV of 2001), for the purposes hereinafter appearing; AND WHEREAS the Governor of the North-West Frontier Province is satisfied that circumstances exist which render it necessary to take immediate action; NOW, THEREFORE, in pursuance of the Proclamation of Emergency of the fourteenth day of October, 1999, as amended uptodate, and the Provisional Constitution Order No. 1 of 1999, read with Article 4 of the Provisional Constitution (Amendment) Order No. 9 of 1999, and in exercise of all powers enabling him in that behalf, the Governor of the North-West Frontier Province is pleased to make and promulgate the following Ordinance: 1. Short title and commencement.—(1) This Ordinance may be called the North-West Frontier Province Local Government (Fourth Amendment) Ordinance, 2002.(2) It shall come into force at once. 2. Amendment of section 1 of N.-W.F.P. Ord. No. XIV of 2001.— In the North-West Frontier Province Local Government Ordinance, 2001 (N.-W.F.P. Ord. No. XIV of 2001), hereinafter referred to as the said Ordinance, in section 1, for sub section (3), the following shall be substituted, namely: "(3) It shall come into force as under:
3. Amendment of section 2 of N.-W.F.P. Ord. No. XIV of 2001.— In the said Ordinance, in section 2,-
"(xvii) 'mal-administration' means and includes- (a) an act of omission or commission, a decision, process or recommendation, which- (i) is contrary to the law, rules, or regulations or is a departure from established practice or procedure; or (ii) is arbitrary, biased, discriminatory, oppressive, perverse, unjust or unreasonable; or (iii) is based on irrelevant grounds; or (iv) involves the exercise of powers or the failure or refusal to do so, for corrupt or improper motives, such as administrative excess, bribery, favouritism, jobbery and nepotism;
(d) after clause (xxvii), the following new clauses shall be inserted, namely: "(xxviia) ‘Provincial Allocable Amount’ means the amount allocated to the local governments from the Provincial Consolidated Fund; (xxviib) ‘Provincial Consolidated Fund’ means the Fund referred in Article 118 of the Constitution of the Islamic Republic of Pakistan; (xxviic) ‘Provincial Retained Amount’ means the balance amount of the Provincial Consolidated Fund after subtraction of the Provincial Allocable Amount from it."; and (e) in clause (xxx), after the word "land', the words and comma "or use of any machinery, equipment or vehicle" shall be added.
(a) for clause (1), the following shall be substituted, namely: "(1) propose taxes, cesses, user fees, rates, rents, tolls, charges, surcharges, levies, fines and penalties under Part III of the Second Schedule for approval of the Tehsil Council and notify the same after such approval;"; (b) in clause (r), the words "and Tehsil Council", appearing at the end, shall be deleted. 7. Insertion of section 54A to N.-W.F.P. Ord. No. XIV of 2001.— In the said Ordinance, after section 54, the following new section shall be inserted, namely; "54A. Functions and powers of the Town Municipal Administration.— The functions and powers of the Town Municipal Administration shall be to-
(h) maintain, with the assistance of the City District Government, Union Councils, Village Councils and Neighbourhood Councils, and comprehensive data base and information system for Town Municipal Administration and provide public access to it on nominal charges; (i) propose taxes, cesses, user fees, rates, rents, tolls, charges, levies, fines and penalties under Part-IV of the Second Schedule for approval of the Town Council and notify the same after such approval; (j) collect taxes, cesses, user fees, rates, rents, tools, charges, fines and penalties; (k) organize local sports, cultural and recreational events, fair and shows; (1) organize cattle fairs and cattle markets; (m) regulate markets and services and issue licences, permits, grant permissions and impose penalties for violations thereof as and where applicable; (n) manage properties, assets and funds' vested in the Town Municipal Administration; (o) develop and manage schemes, including site development in collaboration with City District Government and Union Administration; (p) provide, manage, operate, maintain and improve the municipal infrastructure and services, including- (i) water supply distribution other than integrated systems maintained by or on behalf of the City District; (ii) sewerage system other than an integrated systems maintained by or on behalf of City District excluding sewerage treatment and disposal;
(iii) solid waste collection and conveyance to transfer stations designated by the Town but excluding treatment and disposal of waste; (iv) street lighting;(v) fire fighting; (vi) parks, playgrounds, open spaces and arboriculture, other than major facility maintained by the City District; and (vii) slaughter houses; (q) authorize an officer or officers to issue notice to a person committing any municipal offence and initiate legal proceedings for continuance of commission of such offence or for failure to comply with the directions contained in such notice; (r) prosecute, sue and follow criminal, civil and recovery proceedings against violations of municipal laws; (s) maintain town municipal records and archives; and (t) prepare financial statements and present them for internal and external audit in the manner as may be prescribed.". 8. Insertion of section 58A to N.-W.F.P. Ord. No. XIV of 2001.— In the said Ordinance, after section 58, the following new section shall be inserted, namely: "58A. Town Officers or Tehsil Officer.—The functions and powers of the Town Officer or Tehsil Officer of the Town Municipal Administration or Tehsil Municipal Administration shall be to-
(f) prepare development plans and propose budgetary allocations for their executions; (g) implement approved plans and policies; (h) authorize disbursement of performance bonuses to the employees; (i) prepare proposals for expenditure necessary for the proper conduct of programmes, projects, services, and other activities; (j) propose relevant bye laws on service delivery to the Town or Tehsil Municipal Officer; and (k) act as Departmental Accounting Officer for his respective office and be responsible to the Accounts Committee of the Town or Tehsil Council.".
"67A. Functions and powers of the Town Council.— The functions and powers of the Town Council shall be to- (a) approve taxes, cesses, rates, rents, fees, user charges, tolls, levies, fines and penalties proposed by Town Municipal Administration specified in Part-IV of the Second Schedule; (b) approve annual budget and appropriation for the Town Municipal Administration;
(f) ensure that monitoring committees perform their functions in a non-intrusive manner without interfering in the day to day working of the relevant offices of the Town Municipal Administration and do not assume a command and control role; (g) review the reports of the monitoring committees and make appropriate recommendations to the Town Nazim; (h) elect Code of Conduct Committee which shall be responsible for enforcing the code of conduct for regulating the conduct of the members of the Town Council; (i) elect an Insaaf Committee for interacting with the Insaaf Committee of the Zilla Council; (j) elect Town Accounts Committee to review the audit reports of the accounts of Town Municipal Administration; (k) review the performance of Town Municipal Administration presented by the Town Nazim; (1) recommend by resolution to City District Government to undertake measures for improving delivery of municipal services to the towns; (m) to approve bye-laws for delivery of municipal services; (n) to approve land use, zoning and master plan of the town development and maintenance programmes or projects proposed by the Town Municipal Administration; (o) to require by resolution, the Town Municipal Administration to undertake measures for improvement in the delivery of municipal service.". 11. Amendment of section 75 of N.-W.F.P. Ord. No. XIV of 2001.— In the said Ordinance, in section 75, after sub-section 3), the following new sub-section shall be added, namely: "(4) The Union Nazim may declare one of the secretaries of the Union Administration to act as the Principal Accounting Officer of the Union Administration.".
"98. Composition of Citizen Community Board.— (1) In every local area, groups of non elected citizens may, through voluntary, proactive and self help initiatives, set up any number of Citizen Community Boards. (2) Such Citizen Community Boards shall be set up for the purposes of, inter alia,—
(f) establishment of farming, marketing and consumers cooperatives; provided that grants will be available subject to section 119 of this Ordinance, and reinforcing the capacity of a special Monitoring Committee at the behest of the concerned Council. (3) Notwithstanding anything to the contrary contained in sub section (1), no person shall be eligible to set up a Citizen Community Board or become its member or hold the office of the Chairman or Secretary of the Citizen Community Board, if such person:
14. Amendment of section 99 of N.-W.F.P. Ord. No. XIV of 2001.— In the said Ordinance, in section 99, for sub-section (6), the following shall be substituted, namely: "(6) The Secretary shall present the annual statement of accounts in the annual meeting of the Citizen Community Board and, after its approval, the statement shall be submitted to the registration authority, or such other authority as may be prescribed, within thirty days or such other time period specified in this behalf.". 15. Substitution of section 101 of N.-W.F.P. Ord. No. XIV of 2001.— In the said Ordinance, for section 101, the following shall be substituted, namely: "101. Citizen Community Board to be non-profit organizations: (1) A Citizen Community Board shall be a non-profit organization and its income and assets shall be used solely for the attainment of its objectives. (2) The properties and income of a Citizen Community Board shall vest, and be held, in the name of its Executive Committee. It shall sue and be sued in the name of its Executive Committee. No portion of its income shall be paid by way of salary, dividend, profit or bonuses or otherwise distributed to any of its members or contributors, whether past or present.
16. Amendment of Chapter XII of N.-W.F.P. Ord. No. XIV of 2001.— In the said Ordinance, for Chapter XII, the following Chapter shall be substituted, namely: "CHAPTER XIILOCAL GOVERNMENT FINANCE 107. Establishment of Funds and Public Accounts.— There shall be established a District Fund, a Tehsil Fund, a Town Fund and a Union Fund, as the case may be, for each respective Local Government. (2) All revenues received by a Local Government shall form part of the respective Local Government Fund including:
(f) gifts, grants or contributions to a Local Government by individuals or institutions;
(g) income accruing from markets or fairs regulated by a Local Government; (h) fines paid with respect to offences under this Ordinance or bylaws or under any other law for the time being in force in which provision is made for the fines to be credited to the Funds established under this Ordinance; (i) proceeds from other sources of income which are placed at the disposal of a Local Government under directions of the Government; and (j) all monies transferred to a Local Government by the Government. (3) All other moneys including-
Provided that the schedule of establishment shall be maintained by the Local Governments as may be prescribed. (5) The development budget shall be prioritized in accordance with the bottom up planning system as laid down in section 119: Provided that not less than twenty five percent of the development budget shall be set apart for utilization in accordance with the provisions of section 119.
110. Charged Expenditure.—The following expenditure shall be treated as charged expenditure: (a) in relating to District Fund: (i) the budget of the Zilla Council; (ii) any sum to satisfy any judgment, decree or award against a Local Government by any Court or Tribunal; (iii) all sums to be paid in connection with the administration of the functions of the Zilla Mohtasib; and (iv) interest payments. (b) In relation to Tehsil or Town or Union Fund: (i) the budget of the Tehsil or Town Council the case may be, the Union Council; (ii) any sum to satisfy any judgment, decree or award against a Local Government by any Court or Tribunal; and (iii) interest payments; Provided any other expenditure may be declared as charged expenditure as prescribed. 111. Budget Preparation.—(1) The annual budget for each Local Government shall contain estimates of: (a) grants-in-aid from the Government;
Provided that at the end of a financial year a full statement of all re-appropriations made shall be submitted to the Council.
112. Approval of Budget.—(1) Following the presentation of the Provincial budget but, before the commencement of the next financial year, each Nazim shall, present the budget for approval by the respective Council before the beginning of such financial year: Provided that the charged expenditure may be discussed but shall not be voted upon by the Councils.
(8) The Nazim shall authenticate by his signature a Schedule specifying the:
(2) The following procedure shall be followed unless changed by the Government through a notification; (a) The District Accounts Officer (or a Treasury Officer where a District Administration Officer does not exist) shall maintain the accounts of each District Government for each stream of revenue inflows to a District separately: Provide in City Districts the District Accounts Officer shall also maintain the accounts of each Town for each stream of revenue inflows to a Town separately;
(4) The Auditor General shall have the authority:
115-A Internal Audit.—(1) Nazim of each District Government and Tehsil Municipal Administration or Town Municipal Administration shall appoint an Internal Auditor.
116. Taxes to be Levied.—(1) A Council may levy taxes, cesses, fees, rates, rents, tolls, charge, surcharges and levies specified in the Second Schedule and as prescribed by notification in the Official Gazette.
117. Rating Areas and Property Tax.—(1) On commencement of this Ordinance, every Tehsil and Town shall be rating areas within the meaning of the North-West Frontier Province Urban Immovable Property Tax Act (W.P. Act V of 1958), 1958. (2) The Tehsil Council or Town Council shall determine the rate of property tax in an area within the Tehsil or, as the case may be, Town and forward it to the Government for approval. The Government shall cause the approved rates to be communicated to the Excise and Taxation Department of the concerned District Government for collection: Provided that in the areas within a Tehsil or Town where rate has not been determined, the rate shall remain as zero: Provided further that the Provincial Government shall retain ten percent of the proceeds as collection charges. (3) Unless varied under sub-section (2) above, the existing rates in the areas within a Tehsil and Town shall remain in force. Explanation.—For the purpose of this section the "rate" shall mean the tax leviable under the North-West Frontier Province Urban Immovable Property Tax Act (W.P. Act V of 1958), 1958. 118. Collection of Taxes.—(1) All taxes, levied under this Ordinance shall be assessed, regulated and collected as prescribed. (2) Failure to pay any tax and other money claimable under this Ordinance shall be an offence and the arrears shall be recovered as arrears of land revenue. 119. Bottom up Planning ad the Ownership Incentive System.—(1) Before the beginning of the financial year the respective Local Government shall lay down and announce the classification of development schemes to be undertaken exclusively under the provisions of this section. (2) A Local Government may grant to the Citizen Community Boards within its local areas, upto eighty percent of an approved development scheme in the manner prescribed: Provided that a scheme shall be deemed to be an approved scheme if:
120. Local Governments not to Incur Debt.—(1) No Local Government shall incur any debt. (2) No monies of the Local Government shall be invested in securities other than those floated or approved by the Federal Government or Provincial Government. 17. Amendment of section 121 of N.-W.F.P. Ord. No. XIV of 2001.—In the said Ordinance, in section 121, after sub-section (3), the following new sub-section (4) shall be added, namely: "(4) The Government shall not, except with the prior consent of the local government concerned, reallocate or in any other manner divest title of properties vested in that local government under this Ordinance.". 18. Amendment of section 180 of N.-W.F.P. Ord. No. XIV of 2001.—In the said Ordinance in section 180,—
"(2) The funds of Metropolitan Corporation, Municipal Committee, Town Committee and Union Council shall be transferred to Local Government as its successor under sub-section (1).". 19. Insertion of section 193A to N.-W.F.P. Ord. No. XIV of 2001.—In the said Ordinance, after section 193, the following new section 193A shall be inserted, namely: “193A. Delegation of powers.—A Nazim may delegate any of his powers, including financial powers, under this Ordinance or the rules or bye-laws to any of its officer fully or partly and subject to such restrictions or conditions as he may deem fit, after approval by the Council.”.
"(2) Save as otherwise specifically provided, nothing in the Ordinance, or any repeal effected thereby shall affect or be deemed to affect anything done, action taken investigation or proceedings commenced, order, rule, regulation, appointment, conveyance, mortgage, deed, document or agreement made, fee levied, resolution passed, direction given, proceedings taken or instrument executed or issued, under or in pursuance of any law repealed or amended by this Ordinance and any such thing, action, investigation, proceedings, order, rule, regulation, appointment, conveyance, mortgage, deed, document, agreement, fee, resolution, direction, proceedings or instrument shall, if in force at the commencement of this Ordinance and not inconsistent with any of the provisions of this Ordinance, continue to be in force, and have effect as if it were respectively done, taken, commenced, made, directed, passed, given, executed or issued under this Ordinance or the law, as amended by this Ordinance:
Provided that, until otherwise decided by the Government, the Local Government Boards established under the N.-W.F.P. Local Government Ordinance, 1979 (N.-W.F.P. Ord. No. VI of 1979), for the administration of officers and officials of the Local Council Service or Local Council Unified Grade Service shall continue to function.". 22. Submission of the Second Schedule to N.-W.F.P. Ord. No. XIV of 2001.—In the said Ordinance, for the Second Schedule, the following Schedule shall be substituted, namely: "SECOND SCHEDULE [See Sections 39(b), 54(1), 54-A, 67(i), 67A & 88(b)] Part-I 1. Zilla Council
Part-II11. City District Council
Part-III III. Tehsil Council
Part-IV IV. Town Council
Part-VV. Union Council.
23. Amendment in Fifth Schedule to N.-W.F.P. Ord. XIV of 2001—In the said Ordinance, in the Fifth Schedule, in Part-I (Rules), the existing item 18 shall be renumbered as item 21, and before item 21, as so renumbered, the following new items shall be inserted, namely: "18. Local Government (Citizen Community Board);
"SEVENTH SCHEDULE [See Chapter XIIA] 24. Insertion of Seventh Schedule to N.-W.F.P. Ord. XIV of 2001.—In the saidOrdinance, after Sixth Schedule, the following new Schedule shall be added,namely: Terms of Office of the Professional Members of the Finance Commission.