377. The scheme of deconcentration is complemented by the devolution of powers to local authorities. For this purpose, the Constitution empowers the government to designate municipalities (for towns) and administrative posts (for settlements) as local authorities that shall have assemblies with decision-making powers and executives accountable to their elected assembly. The Constitution stipulates that local authorities shall have their own revenue sources (property and tax assignments) and staff, 23 and shall enjoy decisional autonomy subject to the administrative supervision of the state. Law No. 3/94, which set up municipal districts, provided for elected municipal assemblies and was meant to apply nationwide, adopting existing administrative districts as units of the new municipalities. 378. Instead, a new law (Law No. 2/1997) split local authorities into municipalities and settlements, each to be established by a specific legal instrument and existing alongside the District Administrations’ structures of deconcentration. The new law gave the government control over when, where and which type of local authorities were established. Eventually, 33 local authorities were established in 23 cities and only ten towns out of 60. In 2008, with the establishment of another ten local authorities, the number rose to 43. 379. Local governments have very little autonomy in practice and are totally dependent on the central government for most of their funds. Not only are transfers inadequate, but they are often delayed by bureaucratic processes. The poor state of the infrastructure also plays a part in weakening local administration. Only 48 out of 128 districts have a commercial bank, while the lack of electricity supply has prevented many of them from linking up to their provincial headquarters and centre by ICT. Traditional Rulers 380. The CRM met with several traditional rulers in all the provinces where validation workshops were held. Until the GPA, traditional rulers were categorised together with the colonial government as representing the “ancient regime” that had to give way to the “new” Mozambique. Their rehabilitation came when the GPA guaranteed that the government would “respect and not antagonise the traditional structures and authorities where they [were] currently de facto exercising such authority, and to allow them to be replaced only in those cases where that is called for by the procedures of local tradition themselves”. 24 However, it was not until 2004 that traditional authority received constitutional recognition with the provision that “the state shall recognise and esteem traditional authority that is legitimate according to the people and to 23 Article 279. 24 Protocol V, III (e). 136 A P R M COU N T RY R EV IEW R EP ORT NO. 11