EASTERN CAPE REPORT TO SELECT COMMITTEE ON APPROPRIATIONS MEC M. Qoboshiyane 06 June 2012

EASTERN CAPE REPORT TO SELECT COMMITTEE

ON APPROPRIATIONS

MEC M. Qoboshiyane

06 June 2012

Introduction

IDP as a central planning tool in government

Progress on the implementation of Select Committee resolutions

IGR as a lever for accelerated delivery

Support provided by DLGTA to the 12 municipalities

Road map ahead

TABLE OF CONTENTS

INTRODUCTION

THE POWER OF MEASURING RESULTS• DLGTA is turning the corner in strengthening the province’s local

government system and transforming traditional leadership institutions to

become vital cogs in the wheel of service delivery.

• In line with our service delivery model, we are reconfiguring the department

to ensure that it is poised to provide effective hands-on support at the District

level. This is based on the premise that district coordination is a critical

success factor for the sustainable delivery of services to the people.

• This presentation seeks to outline progress made towards the

implementation of the Select Committee’s findings of the 2010/11 financial

year.

INTRODUCTION

4

IDP AS A CENTRAL PLANNING TOOL IN GOVERNMENT

INTER-SPHERE PLANNING

MTSF – 10 National Priorities12 NATIONAL OUTCOMES

PSF- 8 PRIORITIES

IDP ( MANIFESTO, MTSF, PSF, OUTCOMES)

5 MANIFESTO PRIORITIES

2030

VISION

PGDP

6

ALIGNMENT OF IDP TO PGDS• According to the April 2012 IDP Assessment, all the twelve (12) IDPs were found to be

aligned with the PGDS. The alignment is ensured in the KPA 1 (Spatial Development Planning). The following are 4-year comparative results:

Name of Municipality Score Rating 2009/10

Score Rating 2010/11



Changes in Rating compare to previous year

Mbhashe LM 2.5 Medium High High Consistent

Ngqushwa LM 2 Medium Medium High Improvement

Nkonkobe LM 1 Medium High High Consistent

Nxuba LM 2.5 Low High High Consistent

Makana 3.5 Medium High High Consistent

CHRIS HANI DM 3.5 High High High Consistent

Emalahleni 1 Low High High Consistent

Engcobo 1 Medium High High Consistent

Inkwanca 1 Low Medium High Improvement

Ingquza Hill 3 High High High Consistent

JOE GQABI DM 5 High High High Consistent

Maletswai 4 High High High Consistent

7

TAKING IDP TO A HIGHER LEVEL

• Guidance provided to municipalities on the importance of developing Spatial

Development Framework with demographics.

• Working together with the Office of the Premier, two (2) sets of District-Wide

IDP engagements were held. Furthermore, the Outcomes Based Approach

was introduced to align national, provincial and local priorities.

• DLGTA participated in Provincial MTEC Hearings.

8

PROGRESS ON THE IMPLEMENTATION OF SELECT

COMMITTEE RESOLUTIONS

MALETSWAI LOCAL MUNICIPALITYFINDINGS RECOMMENDATIONS RESPONSE The Maletswai Local Municipality

does not have a Budget and Treasury Office and therefore it is in violating of Section 10 of the Municipal Management Act No. 56 of 2003.

The MLM should establish the Budget and Treasury Office as a matter of urgency.

The municipality has since established the Budget and Treasury office and the CFO is the head of the BTO.

The MLM is not GRAP compliant hence they received a disclaimer audit opinion of the Auditor General.

The MLM should ensure that it complies with General Recognized Accounting Practices in the 2011/2012 financial year.

In the 2010/11 financial year, partial compliance with GRAP was achieved hence the municipality has improved from disclaimer to a qualified audit opinion.

The figures presented by the MLM were not reliable since they did not tally with those in possession of National Treasury.

The figures submitted by the MLM to the Provincial and National Treasury should at all times, be verified and accurate.

• The municipality’s reporting has improved according to Provincial Treasury .

10

MALETSWAI LOCAL MUNICIPALITYFINDINGS RECOMMENDATIONS RESPONSE

There are regular sewer spillages into the Orange River due to ageing infrastructure

The Department of Water and Environmental Affairs should monitor and put stricter measures that seek to avoid water contamination

Provincial Water Forum is currently attending to the water challenges facing the province.

DLGTA is championing a political intervention for the Orange River Water challenges to reduce the on-going water shortages in the surrounding communities.

Although the municipality claims to have eradicated the bucket system in 2007, the people of Jamestown are still using the bucket system as a sanitary relief

The MLM should ensure that the bucket system is eradicated and a better sanitation system should be put in place

The Department is utilising the MuniMEC meetings to address service delivery bottlenecks and to accelerate the programme of eradication of backlogs. Engagements with Human Settlements will ensue in this regard.

11

MALETSWAI LOCAL MUNICIPALITYFINDINGS RECOMMENDATIONS RESPONSE There is huge housing backlog

and basic services that should be provided to the indigents

As a matter of urgency, the MLM should strive to address the housing backlog and provide basic service to poor

•The municipality has improved in the provision of Free Basic Services to the poor. An indigent policy and an updated indigent register are in place. There is a dedicated FBS coordinator for monitoring the implementation of Free Basic Services. The impact is as follows: 4 132 - indigent households have access to Free Basic Energy. 100 - indigent households are provided Free Basic Alternative Energy in a form of Gel. 5 609 - indigent households have access to Free Basic Refuse Removal. 4 470 - indigent households have access to Free Basic Water. 5 169 - indigent households have access to Free Basic Sanitation.

12

INKWANCA LOCAL MUNICIPALITYFINDINGS RECOMMENDATIONS RESPONSE

The ILM is unable to produce financial statements and, as a result, it relies on consultants.

The ILM should utilize the FMG to train the current CFO and all officials in the BTO as they cannot produce financial statements. Furthermore, the ILM should refrain from utilizing consultants because they add no value as the municipality continues to receive negative audit opinion

The municipality is small and rural with a low revenue base. It is struggling to attract competent financial personnel . Currently there are financial interns paid out of Finance Management Grant.

The ILM compensation of employee’s budget is 49 percent of the total operating budget. This amount is high.

The ILM should comply with the acceptable salary percentage guidelines as stipulated in MFMA.

The department in collaboration with Provincial Treasury will advise the municipality to consider right sizing the organisation

13

NKONKOBE LOCAL MUNICIPALITYFINDINGS RECOMMENDATIONS RESPONSE

Even though the NLM has an adopted Supply Chain Management Policy, it is not fully implemented due to staff shortage which results in poor functioning of the bid committee.

The municipality should submit to Provincial Department of Cooperative Governance and Traditional Affairs a turn around strategy within three months after the adoption of this report by the House.

The municipality has employed two SCM officers and two SCM interns and is currently in the selection process for an SCM Manager.

The NLM is affected by poor financial management and violation of legislations, and as a result reports are not submitted on time.

The Provincial Government, working together with South African Local Government Association, should intervene by seconding highly skilled officials to this municipality.

The department deployed Financial and SCM specialists to support and assist the municipality in financial management. The municipality has since improved from disclaimer to qualified audit opinion in the 2010/11 financial year.

14

MBHASHE LOCAL MUNICIPALITYFINDINGS RECOMMENDATIONS RESPONSE

The Committee observed that government departments (Public Works; Department of Justice and Constitutional Development; and Department of Basic Education) owe the MBLM payments for rates.

The Department of Public Works, Justice and Constitutional Development, and Basic Education and other government departments should make every effort to ensure that they pay all monies due to all municipalities, starting with the Mbhashe Local Municipality within two months after the adoption of this report by the house.

• A partnership between DLGTA and PT has resulted in the recovery of R9,6m owed by government departments to the municipality as at end March 2012. Resultantly most accounts are up to date.

The Mbhashe Local Municipality received a disclaimer opinion due to the fact that financial records were not in place.

The MLM should develop and implement a plan to improve its audit outcomes and comply with the MFMA. A turn around strategy should be compiled and submitted in parliament within two months after the adoption of this report by the house.

Through the Operation Clean Audit support, the municipality has improved from disclaimer to a qualified audit opinion in the 2010/11 financial year.

15

JOE GQABI DISTRICT MUNICIPALITYFINDINGS RECOMMENDATIONS RESPONSE Reports that are required in

terms of the MFMA were submitted later than the prescribed time.

The JGDM should refrain from violating the MFMA and submit reports on time. The JGDM should submit to the Provincial Department of Cooperative Governance a turn around strategy that seeks to improve its audit outcomes within three months after the adoption of this report by the House.

The municipality has since improved in the timeous submission of the financial reports in particular Section 71 reports.

Even though the internal audit functions of the municipality were performed by a service provider, the audit outcomes have not improved.

The JGDM should utilise the Municipal Systems Improvement Grant and capacitate its own employees in the internal audit unit and refrain from out sourcing that function because doing so does not improve the audit outcomes.

The municipality obtained an unqualified audit opinion during the 2010/11 financial year.

During the audit process senior managers do not make themselves available to provide information to Auditor-General staff as a result the JGDM has been receiving negative audit opinions for the past two years.

The Council should ensure managers are always available during the auditing process.

Managers have since availed themselves during the audit. As a result an unqualified audit opinion was obtained in the 2010/11 financial year.

16

JOE GQABI DISTRICT MUNICIPALITYFINDINGS RECOMMENDATIONS RESPONSE The JGDM performs functions

that are meant for provincial sphere of governance, like procurement of mobile clinics

The JGDM should only perform functions meant for the local sphere of government unless a service level agreement is in place with a provincial or national government

Provincial IGR structures will deal with this matter.

17

INGQUZA HILL LOCAL MUNICIPALITYFINDINGS RECOMMENDATIONS RESPONSE

The IHLM’s budget for the compensation of employees was 42 percent which was high.

The IHLM should prioritize its operational capital budget because the poor are being compromised at the expense of compensation of employees.

The municipality intends to improve revenue collection in order to drop down the current percentage of personnel costs.

The IHLM is not GRAP compliant.

The DBSA, National Treasury, and Provincial Treasury should speed-up support to IHLM until such time the IHLM can be able to implement GRAP.

During the 2009/10 & 2010/11 financial years the department deployed specialists to assist the municipality to improve audit outcomes through OCA Programme. The municipality has since obtained an unqualified audit opinion during 2010/11 financial year.

18

ENGCOBO LOCAL MUNICIPALITYFINDINGS RECOMMENDATIONS RESPONSE The Committee

recommends that grant spending is reported to be 100% spend and at the same time huge backlogs were reported. The Committee noted this discrepancy.

The ELM should try to address the highlighted backlog and further strengthen its public participation strategy.

• MIG expenditure as at end April 2012, stood at 82%.

• Public participation has been strengthened through: The establishment of ward

committees in all the wards, Deployment of 18 CDWs and

signing of an MOU to guide the operations of CDWs.

The ELM is not GRAP compliance and that is a violation of the MFMA. Moreover, the BTO is not functional.

The committee recommends that ELM should ensure that it is GRAP compliant as a matter of urgency and further capacitates the BTO.

The municipality has begun with the unbundling of assets in order to comply with GRAP.

The municipality is currently finalising the appointment of the CFO.

19

ENGCOBO LOCAL MUNICIPALITYFINDINGS RECOMMENDATIONS RESPONSE

• The Departments of Public Works and Agriculture and other departments should pay in full all monies that they owe to all municipalities for rates and services rendered. These departments should pay these accounts in full within two months after the adoption of this report by the House.

• As at end March 2012, R755 554 had been paid by government departments to the municipality.

• Departments are fairly up to date with their accounts

20

MAKANA LOCAL MUNICIPALITYFINDINGS RECOMMENDATIONS RESPONSE

The MALM does not have qualified personnel in the electricity department.

• The MALM should ensure that professional electricians are employed as a matter of urgency.

The municipality currently has 4 unqualified electricians as they are still to undergo trade tests. In the organisational structure, there are 7 vacant posts of electricians which have already been advertised.

• Even though the MALM claimed that it has eradicated the bucket system, this only refers to urban areas and rural areas are neglected.

• The MALM should strive to provide services to people who are either in rural communities and farming lands.

Waterless toilets have been erected in three settlements namely Seven Fountains, Conningham and some parts of Riebeck East.

Water is ferried through municipal trucks at varied intervals in most of the rural areas except for Seven Fountains where there is a windmill.

21

EMALAHLENI LOCAL MUNICIPALITYFINDINGS RECOMMENDATIONS RESPONSE• The EMLM provides

refuse collection in urban areas only and this forces rural communities to use illegal way of disposing. This may expose people to health risk factors.

• The EMLM should refrain from providing services to selected areas under its jurisdiction. Services should be provided to all people regardless of where they reside including those living in rural areas.

• The finding is acknowledged and the department will utilise intergovernmental structures in dealing with this problem.

• Free Basic Services is also provided to indigent households that are residing in rural areas as well.

22

NXUBA LOCAL MUNICIPALITYFINDINGS RECOMMENDATIONS RESPONSE

The Committee find that most farmers do not pay property rates.

The NXLM should ensure that it collects revenue for property rates from all those that are suppose to. Legal action should be undertaken where there is resistance.

The problem was resolved and as a result farmers are now paying for property rates.

23

CHRIS HANI DISTRICT MUNICIPALITYFINDINGS RECOMMENDATIONS RESPONSE

• The CHDM has invested R150mil which should have been used to address backlogs.

• The CHDM should redirect all invested funds towards addressing service delivery backlogs

The R150mil was a short term investment based on the cash flow taking to account the time the money would be paid for projects implemented. The investment was not meant to negate service delivery.

The CHDM is not GRAP compliant and as a result it has been receiving disclaimers for three consecutive years.

The Municipality, as a matter of urgency, should ensure that it is GRAP compliant. This is crucial for a district municipality because local municipalities stand to benefit through their best practices.

The municipality has since completed the unbundling of assets in order to comply with GRAP.

The department is rendering support through OCA to improve the audit outcome of the municipality.

24

NGQUSHWA LOCAL MUNICIPALITYFINDINGS RECOMMENDATIONS RESPONSE Evaluation of assets is the

most contributing factor for the NGLM to not comply with GRAP. Inability to evaluate assets is the major cause for the NGLM to be not GRAP compliant.

The NGLM should put more effort on asset evaluation; this after all will ensure that it is GRAP compliant.

The municipality has set aside a sum of R650 000 to complete the processes of valuation and componentisation of infrastructure assets. This is scheduled to be completed by June 2012.

25

COMMENTS BY STAKEHOLDERSFINDINGS RECOMMENDATIONS RESPONSE

Fiscal and Financial Commission (FFC)

Municipalities are owed monies for property rates by government departments. The biggest monies are owed by Provincial Department of Public Works;

The National and Provincial departments, especially the National and Provincial Departments of Public Works, that owe municipalities property rate fees should ensure that they pay them accordingly; and report to the House that they have paid all outstanding amounts and this report should be submitted to the House within three months after the adoption of this report by the House.

The Department and Provincial Treasury are continuously supporting and assisting municipalities to recover outstanding monies from government departments.

As at end March 2012, R51,6m has been paid by government to the 12 municipalities.

The payment of debt by government department is a standing agenda item in all IGR forums.

26

COMMENTS BY STAKEHOLDERS..FINDINGS RECOMMENDATIONS RESPONSE


The Audit Committee of all municipalities had not addressed the Councils

The councils should strengthen their oversight roles.

The department has conducted leadership empowerment sessions for Speakers, Mayors, Chief Whips and managers to strengthen the oversight capacity.

MEC further convened a session for all Mayors, Chairpersons of Audit Committees and Chief Audit Executives to improve governance and oversight function.

All the 12 municipalities have established the MPACs and training on the functioning of MPACs has been conducted.

27

ATTENDANCE TO LEADERSHIP EMPOWERMENT

TOLEADERSHIEMPOWERMENTSTRAININGMUNICIPALITY MAYOR SPEAKER CHIEF WHIP S.56 MANAGERS

Mbashe LM X 5

Ngqushwa LM X X 1

Nkonkobe LM X 1

Nxuba LM X - 1

Chris Hani DM X X 6

Emalahleni LM X 4

Engcobo LM X 0

Inkwanca LM - 0

Joe Gqabi DM 7

Maletswai LM - X 3

Makana LM X 3

Ingquza Hill LM X X 2

SUPPORT ON FINANCIAL POLICIES • The department provided the thirteen municipalities with financial policies:

Credit control and debt collection policies and corresponding by-law

Tariff policy and corresponding by-law

Revenue management and corresponding by-law

Asset management

The department is in the processes are underway of workshoping

municipalities on the four policies and by-laws.

29

STATUS ON THE ESTABLISHMENT OF BTOMUNICIPALITY ESTABLISHMENT OFFICIALS AT

FINANCE DEPT.STATUS OF CFO

MBASHE ESTABLISHED 14 Selection process underway

NKONKOBE ESTABLISHED 13 Post filled

NXUBA ESTABLISHED 16 On suspension

NGQUSHWA ESTABLISHED 10 Post filled

INGQUZA HILL ESTABLISHED 13 Post filled

JOE GQABI ESTABLISHED 22 Post filled

MALETSWAI ESTABLISHED 24 Post filled

CHRIS HANI ESTABLISHED 23 On suspension

ENGCOBO ESTABLISHED 19 Selection process underway

EMALAHLENI ESTABLISHED 12 Post filled

INKWANCA ESTABLISHED 10 Vacant

MAKANA ESTABLISHED 57 Selection process underway30

STATUS 0N ESTABLISHMENT OF AUDIT COMMITTEES

MUNICIPALITY HAS AUDIT COMMITTEE BEEN ESTABLISHED

OWN AUDIT COMMITTEE

SHARED SERVCE

MBASHE YES OWN

NKONKOBE YES OWN

NXUBA YES OWN

NGQUSHWA YES OWN

INGQUZA HILL YES OWN

JOE GQABI YES OWN

MALETSWAI YES OWN

CHRIS HANI YES Shared

ENGCOBO YES Shared

EMALAHLENI YES Shared

INKWANCA YES Shared

MAKANA YES OWN31

STATUS 0N ESTABLISHMENT OF INTERNAL AUDIT UNITS

MUNICIPALTY HAS AUDIT UNIT BEEN ESTABLISHED?

OWN AUDIT UNIT

CO-SOURCED AUDIT UNIT

OUTSOURCED

MBASHE YES OWN

NKONKOBE YES OWN

NXUBA YES Co-sourced

NGQUSHWA YES OWN

INGQUZA HILL YES OWN

JOE GQABI YES Co-sourced

MALETSWAI YES OWN Out-sourced

CHRIS HANI YES OWN

ENGCOBO YES OWN

EMALAHLENI YES Co-sourced

INKWANCA YES OWN

MAKANA YES Out-sourced 32

TIMELY SUBMISSION OF AFS AND AUDIT OPINIONS

MUNICIPALITY 2009/10 2010/11 2009/10 AUDIT OPINION

2010/11 AUDIT OPINION

MBASHE 31-08-2010 31-08-2011 Disclaimer Qualified

NKONKOBE 31-08-2010 31-08-2011 Disclaimer Qualified

NXUBA Nov-2010 31-08-2011 Disclaimer Disclaimer

NGQUSHWA 31-08-2010 31-08-2011 Qualified Disclaimer

INGQUZA HILL 31-08-2010 29-08-2011 Qualified Unqualified

JOE GQABI 31-08-2010 31-08-2011 Qualified Unqualified

MALETSWAI 31-08-2010 31-08-2011 Disclaimer Qualified

CHRIS HANI 02-09-2010 31-08-2011 Disclaimer Disclaimer

ENGCOBO 31-08-2010 30-08-2011 Disclaimer Disclaimer

EMALAHLENI 31-08-2010 31-08-2011 Disclaimer Disclaimer

INKWANCA 31-08-2010 31-08-2011 Adverse Disclaimer

MAKANA 31-08-2010 20-09-2012 Disclaimer Disclaimer33

COMMENTS BY STAKEHOLDERS....FINDINGS RECOMMENDATIONS RESPONSE


The majority of municipalities are not General Recognized Accounting Practices (GRAP) compliant and record keeping is very poor. Non-compliance with GRAP is the main cause of the negative audit opinions that were received by municipalities. The evaluation of assets is the most contributing factor for municipalities not to comply with GRAP

The National Treasury and the National Department of Cooperative Governance and Traditional Affairs should develop programmes aimed at assisting municipalities (especially low-capacity municipalities) with the conversion from the Institute of Municipal Finance Officers to the Generally Recognized Accounting Principles reporting systems. This process should be fast-tracked so as to realize the 2014 Operation Clean Audit target

Municipalities are in the process of finalising the valuation of infrastructure including unbundling and componentisation of infrastructure assets.

The department has deployed specialists in municipalities with disclaimers and adverse audit opinions to improve audit outcomes and to realise the 2014 Operation Clean Audit target.

34

STATUS ON THE UNBUNDLING OF ASSETSMUNICIPALITY STATUS ON THE

UNBUNDLING OF ASSETSENVISAGE DATE OF COMPLETION

MBASHE In progress 30 -06-2012

NKONKOBE In progress 15-08-2012

NXUBA Completed

NGQUSHWA In progress 30-06-2012

INGQUZA HILL Completed

JOE GQABI Completed

MALETSWAI Completed

CHRIS HANI Completed

ENGCOBO Completed

EMALAHLENI In progress 30 -06-2012

INKWANCA In progress 30 -06-2012

MAKANA Completed35

COMMENTS BY STAKEHOLDERS Cont....FINDINGS RECOMMENDATIONS RESPONSE


Even though municipalities have established BTOs, they are not effective and/or adding value due to the capacity constraints;

The National Treasury and the Development Bank of Southern Africa through its Siyenza Manje Programme should monitor the establishment of the Budget and Treasury Offices, internal audits, and audit committees in all municipalities and further capacitate officials employed by these municipalities.

National and Provincial Treasuries are in the process of ensuring that municipal officials within BTO go through an accredited training programme that will ensure that they achieve minimum competency level in financial management by 2013.

43 municipalities have established audit committees and the remaining two are in the process of selecting members of the committee after their term have recently expired (O.R. Tambo & Kouga).

44 municipalities have established internal audit units (Kouga LM has not yet established it).

36



Some municipalities are investing their equitable share, whilst this money accumulates interest, the poor are deprived of service that were promised by the leadership of the country.

The National Treasury and Provincial Treasury should monitor how municipalities spend the accumulated interests from the municipal investments;

Provincial Treasury has advised that municipalities should desist from investing equitable share whilst service delivery is compromised.

Appropriate controls are in place to ensure that unused and uncommitted conditional grants are returned to National Treasury or offset from the municipality’s equitable share.

37



The financial figures presented do not match those submitted to National and Provincial Treasuries

The National and Provincial Department of Cooperative Governance, Auditor General, Provincial and National Treasury should contribute to the Municipal Turnaround Strategy by developing tools that are going to assist municipalities to comply with all provisions of the Municipal Finance Management Act

At the end of each quarter National and Provincial Treasury require municipalities to authenticate figures in the Section 71 reports submitted to National Treasury and Provincial Treasury before the figures are published.

38

INTERGOVERNMENTAL RELATIONS AS A LEVER FOR ACCELERATED

DELIVERY

INTERGOVERNMENTAL RELATIONS MUNICIPALITY LEVEL OF

FUNCTIONALITY

STATUS QUO

Amathole District Municipality Functional • Convenes Technical & Political DIMAFO meetings quarterly

• Discussion issues are informed by Local Municipality Service

Delivery Priorities

• Decisions taken are implemented and reported accordingly.

• Strategic Service Delivery Issues of common interest are also

elevated to the Provincial MuniMEC and the PCF.

Cacadu District Municipality Functional

Joe Gqabi District Municipality Functional

Chris Hani District Municipality Functional

Alfred Nzo District Municipality Still being established • Terms of Reference (ToR) have been developed and its

functioning on an ad-hoc basis.

OR. Tambo District Municipality Still being established • Draft IGR Framework to be launched in June 2012

Nelson Mandela Bay Metro Still being established • ToR have been developed

Buffalo City Metro Still being established • ToR have been developed

• Provincial MuniMECs (Technical and Political) are fully functional and are taking a

provincial character wherein attendance by Municipalities, National and Provincial

government departments as well as other relevant stakeholders is exceptional.

• Strategic Agenda issues that are discussed at these sessions are mostly informed by

inputs from DIMAFOs and other stakeholders, while resolutions are implemented and

progress reported accordingly to the Provincial MuniMEC meeting.

• There is cross-pollination on service delivery issues emanating from the DIMAFOs to

the Provincial MuniMECs en route to the Premier’s Coordinating Forum and vice

versa.

INTERGOVERNMENTAL RELATIONS

• An IGR Provincial Strategy as well as a Handbook tailor made to address Province-

related IGR challenges has been developed to practicalise IGR within the Provincial

and Local Government Spheres.

• The Provincial MuniMEC has grown to be a flagship of functional IGR systems to be

emulated by other Provinces. Minister R. Baloyi said in his Budget Vote Speech

dated 09th May 2012 “To this end, the Eastern Cape Government is providing a lead

through their MuniMEC arrangements and support machinery from the Sector

Departments and State Owned Entities”.

• The KSD Presidential Intervention, which is championed and driven by DLGTA has

adopted a whole-of government-approach and is proving to be a best practice of IGR

in action. The President in his State of the Nation Address dated 09th February 2012

said “The implementation of the Mthatha Revitalisation Project, which is a

Presidential Special Project, is proceeding well”.

INTERGOVERNMENTAL RELATIONS

43

MIG EXPENDITURE FOR 2010/11 F/Y

Municipality 2010/11

Allocations

Expenditure as at 06/2011

2011/12 Allocations

Expenditure as at 04/2012

Exp (000) % Exp Exp (000) % Exp

Joe Gqabi R 119 694 R 119 694 100% 143 957 138 803 96%

Maletswai R 10 487 R 10 487 100% 12 614 12 521 99%

Chris Hani R 236 636 R 236 636 100% 284 604 284 603 100%

Emalahleni R 15 978 R 15 978 100% 19 217 17 330 90%

Engcobo R 17 977 R 17 833 99% 21 621 17 660 82%

Inkwanca R 6 848 R 6 848 100% 8 236 6 380 77%

Mbhashe R 27 280 R 27 279 100% 32 809 32 809 100%Nkonkobe R 18 037 R 18 037 100% 21 693 15 117 70%

Nxuba R 8 039 R 8 039 100% 9 669 6 682 69%Ngqushwa R 14 349 R 14 349 100% 17 257 10 448 61%

Ingquza HillR 26 226 R 26 226 100% 31 543 24 688 78%

Makana R 20 213 R 20 213 100% 24 312 13 811 57%

SUPPORT PROVIDED BY DLGTA TO THE TWELVE (12) MUNICIPALITIES

SUPPORT RENDERED BY THE DEPT FOR 2010/11 F/Y

MUNICIPALITY AMOUNT (R000)

PURPOSE OF TRANSFER

Joe Gqabi 350 Appointment of an LED expert to supplement capacity

Maletswai 53350

Appointment of an LED expert to supplement capacitySupport Local Government Elections

Chris Hani 671 Appointment of an LED expert to supplement capacity

Emalahleni 1 200 Supported Local Government Elections

Engcobo 53 110

1 200345445

Appointment of an LED expert to supplement capacityTo compile socio-economic profile for Revitalisation of 2nd EconomySupported Local Government ElectionsTo revise existing Spatial Development Framework and is in placeIDP

Inkwanca 53100150280

Appointment of an LED expert to supplement capacityLocal Government ElectionsSupported Land use valuationsTo revise existing Spatial Development Framework and is in place

45

SUPPORT RENDERED BY THE DEPT FOR 2010/11 F/Y

MUNICIPALITY AMOUNT (R000) PURPOSE OF TRANSFER

Mbhashe 65

53110700

1 0002 000

To assist in paying salary difference to a seconded official of the Department acting as MMAppointment of an LED expert to supplement capacityRevitalisation of 2nd economyFinancial ManagementStrengthening admin capacitySupported Local Government Elections

Nkonkobe 53800345445

Appointment of an LED expert to supplement capacityAssisted Local Government ElectionsTo revise existing Spatial Development Framework and is in placeSupport to develop IDP

Nxuba 53250

Appointment of an LED expert to supplement capacityLocal Government Elections

Ngqushwa 350110900

Appointment of an LED expert to supplement capacityRevitalisation of 2nd economyAssisted Local Government Elections

Ingquza Hill 1001 050

445

Fifa world cup eventAssisted Local Government ElectionsTo support the development of IDP

Makana 100150

Fifa world cup eventAssisted Local Government Elections46

OTHER SUPPORT RENDERED BY THE DEPT FOR 2011/12 F/Y• Appointment of an LED expert to supplement capacity

Emalahleni - R67 175Chris Hani - R380 000Maletswai - R67 180 Joe Gqabi - R371 245

• Revitalisation of Small Towns & Villages• The following municipalities have been assisted in the revitalisation of small towns and villages for

stakeholder mobilisation viz. Mbashe, (Dutywa) - R116 677 (Feasibility study undertaken) Ngqushwa (Hamburg) - R116 677 (Master Plan has been developed)Engcobo - R116 677 (Feasibility study for a taxi rank undertaken)

• Disaster Management ServicesA sum of R5 886 661 is utilised for the construction of 5 fire stations at EngcoboSupported the Chris Hani DM in the functionality and viability of Disaster Management CentreAssist Chris Hani and Cacadu DMs in the review of the District Disaster Management PlanA sum of R 861 825 for operational costs to promote effective Disaster Management Systems for

Chris Hani DM

47

OTHER SUPPORT RENDERED BY THE DEPT FOR 2011/12 F/Y

• HR Training

Provided Technical Training for 33 officials from Joe Gqabi and CH DM focusing on

storm-water drainage

• Bail out

A sum of R1 500 000 and R1 000 000 to Nxuba municipality during January and March

2011 respectively to pay Eskom account

• Secondment of Senior Officials to municipalities

Acting Municipal Manager at Mbashe LM

Acting Municipal Manager at Ngqushwa LM

Acting Municipal Manager at Nxuba LM

Acting CFO at Makana LM

48

ROAD MAP AHEAD

• Political and administrative stability in municipalities for improved local government performance

• Strengthening District Co-ordination to become a tool for accelerated delivery of services

• Fast-tracking participation of Traditional Leaders in local governance

• Uprooting fraud and corruption in local government• Sound financial management in the department and municipalities

for improved audit outcomes• Monitoring implementation of delivery agreements

ROAD MAP AHEAD

THANK YOU!

ENKOSI

Documents

EASTERN CAPE REPORT TO SELECT COMMITTEE ON APPROPRIATIONS MEC M. Qoboshiyane 06 June 2012