FINAL DRAFT OVERSIGHT REPORT 17 March 2014nelsonmandelabay.gov.za/datarepository/documents/elH98...Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report 2

OVERSIGHT REPORT

ON 2012/13 ANNUAL REPORT

MARCH 2014

________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report

MUNICIPAL PUBLIC ACCOUNTS COMMITTEE MEMBERS:

Councillor V J Tutu (Chairperson)

Councillor D N Biddulph

Councillor X C Bisset

Councillor N R Captain

Councillor A P Dashwood

Councillor T Gana

Councillor M E G Harning

Councillor B N Mafaya

Councillor J N Mapu

Councillor H Müller

Councillor T S Noqoli

Councillor K G Ntshanyana

Councillor R Odendaal


TABLE OF CONTENTS

FOREWORD BY THE CHAIRPERSON ..................... ................................ 1

1. BACKGROUND ...................................... .............................................. 3

2. PROCESS FOLLOWED BY COUNCIL ..................... .......................... 4

3. CONCLUSIONS AND RECOMMENDATIONS ................. ................... 5

4. COUNCIL RESOLUTIONS ............................. ..................................... 22

ANNEXURES

Annexure “A” : Minutes of Municipal Public Accounts Committee

meetings

Annexure “B” : Advertisements/Invitations to the pu blic to comment/

participate in the scheduled public participation

meetings

Annexure “C” : Minutes of public participation meet ings


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FOREWORD BY THE CHAIRPERSON

The Council of Nelson Mandela Bay has the responsibility to oversee the

performance of the Municipality, as required by the Constitution, the Municipal

Finance Management Act (MFMA) and the Municipal Systems Act (MSA). On

24 January 2014, Council considered the Draft 2012/13 Annual Report of

Nelson Mandela Bay Municipality and referred the Report to the Municipal

Public Accounts Committee for review and the drafting of this Oversight

Report.

The Oversight Report is the final major step in the annual reporting process of

a municipality. Section 129 of the MFMA requires the Council to consider the

Annual Report and to adopt an Oversight Report containing the Council’s

comments on the Annual Report. The Oversight Report is therefore clearly

distinguished from the Annual Report. The Oversight Report is a report of the

Municipal Council and follows consideration and consultation on the Annual

Report by the Council itself.

The Municipal Public Accounts Committee of the Nelson Mandela Bay

Municipality fulfils the oversight role of Council. The mandate of the Municipal

Public Accounts Committee includes an analysis of the institution’s Annual

Report and the development of appropriate recommendations to Council.

The meetings of the Municipal Public Accounts Committee on the 2012/13

Annual Report, as reflected below, were open to the public and media to

ensure a transparent and credible oversight process:

• 4 February 2014

• 13 February 2014



• 6 March 2014

• 13 March 2014


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Furthermore, the 2012/13 Annual Report was subjected to a public

participation process during 24 February to 6 March 2014, during which

members of the Municipal Public Accounts Committee and the political

leadership of Nelson Mandela Bay engaged with the communities of the

various Wards. In addition, copies of the Draft 2012/13 Annual Report were

made available for inspection at all municipal libraries and customer care

centres and also on the municipal website.

The Municipal Public Accounts Committee noted both improvements in

certain performance areas, as reflected in the 2012/13 Annual Report, but

also unsatisfactory performance in some areas. As reflected in this Oversight

Report, the Municipal Public Accounts Committee has also raised concerns

on a number of issues requiring immediate intervention.

It is noted with concern that, despite the fact that Council has twice resolved

that the Municipal Public Accounts Committee become a stand alone

Committee, no effect has been given to this resolution. Together with my

fellow MPAC members, I hereby appeal that this resolution be implemented

as a matter of urgency, in the interest of strengthening the oversight process

and good governance in the institution.

Finally, I would like to commend my fellow Municipal Public Accounts

Committee members for their hard work and commitment. I would also like to

thank the Speaker and the Officials for their support in the Oversight process,

especially the City Manager, Acting Chief Operating Officer and the Acting

Chief Financial Officer, who provided strategic support in this process. A

word of thanks must also be given to the Office of the Auditor-General and the

Audit Committee for their input in the Annual Report and oversight processes.

COUNCILLOR V J TUTU

CHAIRPERSON


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1. BACKGROUND

Each municipality and each municipal entity must prepare an annual report for

each financial year in accordance with the Municipal Systems Act (MSA)

(Section 46) and the Municipal Finance Management Act (MFMA) (Section

121). In addition, Circulars 11 and 63, issued by National Treasury (NT), and

the Annual Report Customised Template and Guidelines provided by the

Provincial Department of Local Government and Traditional Affairs provide

guidance to municipalities on compliance with the above legislation.

A municipal annual report includes the following key elements:

• Annual performance report, evaluating the year’s performance against

the performance objectives established in the IDP, Budget and Service

Delivery and Budget Implementation Plans (SDBIPs);

• Annual financial statements (AFS), Auditor-General’s (AG) Audit Report

on the AFS and management’s responses to address the AG’s audit

findings;

• Other disclosures, as required by the MFMA in Sections 121, 123, 124

and 125 (e.g. Councillor and top management compensation, grants,

bank accounts and investment information).

The MFMA directs the annual report to be completed and tabled in Council by

31 January, for the financial year ended the previous 30 June. Council must

then review the annual report and adopt an oversight report containing its

comments within 60 days.

The MFMA (Section 129 (1)) and National Treasury’s (NT) Circular 32 direct

and guide the oversight process and the preparation of the oversight report.

Circular 32 recommends that Council establish an Oversight Committee to

prepare an oversight report, in order that all Councillors be provided with a

more detailed and comprehensive analysis of the Annual Report than would


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have been practical otherwise. This assists Council in providing better

oversight over municipal performance.

The 2012/13 Annual Report was tabled in Council on 24 January 2014, on

schedule.

2. PROCESS FOLLOWED BY COUNCIL

On 24 January 2014, Council referred the 2012/13 Annual Report to the

Municipal Public Accounts Committee (MPAC), which performs the function of

an Oversight Committee. The MPAC consists of members from the ANC, DA

and a minority party. The Committee is made up as follows:

• African National Congress – 7 members

• Democratic Alliance – 5 members

• Minority parties (represented by Congress of the People) – 1 member

Other Councillors who were not members of the Municipal Public Accounts

Committee attended its meetings from time to time, as did members of the

public and the media.

The Committee based its work on the following documents:

• 2012/13 Annual Report

• 2012/13 Service Delivery and Budget Implementation Plan (SDBIP),

incorporated in the Annual Report

• 2011/12 Oversight Report

• MFMA

• NT’s Circular 32 – The Oversight Report

• NT’s Circulars 11 and 63 – The Annual Report


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The Municipal Public Accounts Committee values community participation in

the oversight process. In this regard, the following initiatives were made:

• An invitation to the public to submit comments on the Annual Report

was advertised in the local printed media on 29 January 2014 and

7, 13 & 19 February 2014 (The Herald, Die Burger, the Daily Sun, the

UD News and the PE Express) and posted on the municipal website.

• A schedule of the 2012/13 Annual Report Public Participation meetings

that took place from 24 February to 6 March 2014 was advertised in

the local printed media between 20 and 24 February 2014 (The Herald,

Die Burger, The Weekend Post, the PE Express and the UD News)

and posted on the municipal website.

• The Office of the Auditor-General and the Audit Committee were

invited to participate in all Municipal Public Accounts Committee

meetings.

• The meetings of the Municipal Public Accounts Committee were open

to the public and the media.

3. CONCLUSIONS AND RECOMMENDATIONS

The conclusions and recommendations of the Municipal Public Accounts

Committee are presented in two sections, as reflected below:

• Compliance issues – This section contains the Committee’s

comments on whether the 2012/13 Annual Report included the items

required by the MFMA and followed the guidance provided by NT

Circular 32.

• Other Annual Report issues – This section contains the Committee’s

substantive comments on the Annual Report and other issues raised

by the Committee.


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3.1 Compliance Issues

As documented below, the Annual Report complied with the requirements of

the Municipal Systems Act and the Municipal Finance Management Act

(MFMA), National Treasury guidance on the content of annual reports, as well

as the Customised Template and Guidelines for Annual Reports provided by

the Provincial Government.

3.1.1 MFMA requirements included in tabled Annual R eport

• Headings and content recommended in National Treasury Circulars and

Guidelines.

• Annual Financial Statements.

• Auditor-General’s Audit Report.

• Performance report – Performance statistics and narratives are included,

as required.

• Report of the Audit Committee.

• Conditional grants and assessment of compliance.

• Allocations to other organisations.

• Total payments for audit fees, taxes, levies, duties, pension and medical

aid contributions, and if any amounts are outstanding at year-end.

• Each bank account (name, type, balances).

• Summary of all investments.

• Information on backlogs.

• Material irregular, fruitless or wasteful expenditure and whether

recoverable.

• Salaries, allowances and benefits for each political office-bearer and top

management official.

• Arrears owed by each NMBM Councillor.

• Comparative performance information – Actual performance compared to

the 2012/13 performance objectives, as well as performance information

from the previous year.


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• Analysis of arrears.

• Auditor-General’s Report on Performance Management System.

• Entity reports, for each entity.

3.2 Matters of concern noted by the Municipal Publi c Accounts

Committee

3.2.1 Audit Report by Auditor-General

The Municipal Public Accounts Committee records its concern at the second

qualified audit opinion received from the Auditor-General and the matters of

emphasis expressed in the Audit Report. These matters include:

3.2.1.1 Restatement of comparative figures

As disclosed in notes 40 to the consolidated and separate financial

statements, the comparative figures for 30 June 2012 have been

restated as a result of a change in accounting policy and errors that

were corrected only during the financial year ended 30 June 2013, but

that existed in the consolidated and separate financial statements of

the Municipality at, and for the year ended, 30 June 2012.

3.2.1.2 Unauthorised, irregular and fruitless and wasteful expenditure

As disclosed in note 44 to the consolidated and separate financial

statements, R471,6 million of unauthorised, irregular and fruitless and

wasteful expenditure was incurred during the financial year. This

includes unauthorised expenditure amounting to R270,7 million,

which was incurred due to overspending in respect of a number of

votes within the approved municipal expenditure budget.


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3.2.1.3 Material losses and impairments


statements, the impairment of receivables amounted to

R409,8 million for the year.

As disclosed in note 35.9 to the consolidated and separate financial

statements, water losses amounting to R208,4 million were incurred

during the financial year.

3.2.1.4 Material underspending of the Capital Budget


statements, the Municipality underspent by R184,5 million on its

roads and stormwater infrastructure budget.

3.2.2 Other matters

The Municipal Public Accounts Committee expressed the following additional

concerns:

3.2.2.1 45% of key performance indicators and targets were not met.

3.2.2.2 The Municipality did not have adequate systems in place to identify

and disclose all the irregular expenditure during the year, as required

by the MFMA.

3.2.2.3 Long delay in filling the more than 80% of senior management

vacancies that existed during the 2012/13 financial year.

3.2.2.4 Underexpenditure on IPTS funding.

3.2.2.5 High level of electricity theft.

3.2.2.6 Projects listed in the Integrated Development Plan for several years

remained unimplemented, while other, new projects receive

budgetary preference.


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3.2.2.7 Small budgetary allocations made to some Wards, despite priorities

being submitted by the Ward Councillors.

3.2.2.8 Approval of Budget without simultaneous approval of Ward-based

Plans.

3.2.2.9 Lack of market related rentals and lack of lease agreements in

respect of municipal facilities/properties impacted on income of the

Municipality.

3.2.2.10 Risk to the financial sustainability of the institution posed by the

underachievement of debt collection.

3.2.2.11 Backlog in repairing and maintaining infrastructure, due to financial

constraints.

3.2.2.12 Only two of the seven municipal water treatment works have been

awarded Blue Drop status.

3.2.2.13 The process to fill vacancies sometimes took nine to ten months to

finalise, not only in respect of critical or senior appointments, but

also in the case of appointments at lower levels.

3.2.2.14 Large number of claims arising from damages/injuries due to

potholes.

3.2.2.15 Failure to implement the resolution taken at two NMBM Council

meetings that the Municipal Public Accounts Committee become a

stand alone Committee.

3.3 Areas of amendment to the 2012/13 Annual Report

Wording in the 2012/13 Annual Report must be amended as follows:

(a) Deleting the word “vibrant” on page 12 in respect of the IDP and

Budget public participation programme.

(b) Inserting a challenge on page 13 under the heading: “Further

challenges experienced…”:

• Problems were experienced around the implementation of

the IPTS.

(c) Removing “fast-tracking of the Municipality’s Illegal Dumping Strategy”

as a highlight in paragraph (d) on page 12, and inserting it as a


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challenge on page 13, under the heading: “Further challenges

experienced…”.

(d) Inserting a statement in the Annual Report to reflect the possibility of

more job creation through accessing the considerable funding available

for EPWP projects.

(e) Correcting the statement on page 359, which reads that a permanent

Chief Financial Officer has been appointed.

(f) Deleting the reference to the Municipality setting an example to

residents regarding the conservation of resources from the second

paragraph on page 16.

(g) Rewording the third paragraph on page 16 of the Executive Summary

in the Annual Report to reflect that the Operational Efficiency Plan has

not entirely succeeded in curtailing unnecessary spending on, for

example, telephone usage, and that some outstanding issues still

needed to be addressed.

(h) Rewording paragraph 4 on page 16 to clarify the exact meaning it

intended to impart to readers.

(i) Inserting additional information about the negative impact of electricity

theft on income on page 28, also stating the estimated annual amount

being lost, and the potential annual income that could have been

gained if effective controls were in place.

(j) Deleting the word “fully” on page 44 from the sentence “The Council is

fully functional….”.

(k) Amending paragraph on page 44 concerning the number of meetings

held by Council to reflect a split between ordinary meetings and special

meetings and a correction in the number of meetings held, to 6 Special

Council meetings held and 8 Council meetings held.

(l) Inserting statistics on the actual number of meetings held by the

Mayoral Committee and the Whippery, as opposed to how many

meetings should have been held.

(m) Inserting MPAC’s functional challenges, i.e. Absence of Acting

Municipal Manager and Acting Executive Directors at meetings and

non-submission of outstanding reports, in paragraph 2.1.4 on page 47.


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(n) Amending the statement in the paragraph under the heading “Public

meetings” on page 59 of the Annual Report that “the Municipality has a

broad spectrum of consultative and participatory public programmes in

place to ensure community participation in municipal planning and

decision-making processes” to include the fact that the turn-out at such

meetings are often poor, but that ways will be explored to improve it.

(o) Inserting a reference to the fact that the various offices in the

Municipality created to manage the structures/forums listed on pages

53 and 54 were not functional.

(p) Inserting the comment that Internal Audit’s work was at times

hampered by various factors (such as political interference; non-

release of reports from the Office of the Municipal Manager;

uncooperative stance of certain municipal officials in providing required

information, creating the impression of the possibility that they may be

protecting some individuals; and the role played by the unions in this

regard) in the first paragraph under the heading “Overview of corporate

governance” on page 62.

(q) Inserting the following statements in Paragraph 2.8 under the heading

“Supply Chain Management” on page 65 of the Annual Report:

(i) that non-compliance with the MFMA in the Supply Chain

Management Division was the reason for the qualified audit

opinion in 2012/13; and

(ii) that it was of concern to MPAC that there was no functioning

system in place for officials to declare their business interests on

an annual basis.

(r) Amending the report on pages 138 to 140, which sets out the positive

side of local economic development in Nelson Mandela Bay, by

acknowledging that substantial job losses occurred and that

disadvantaging problems were experienced by local commerce and

industry in the year under review (in this regard, the high energy users

were forced to shed approximately 1 000 jobs).

(s) Amending the statement in the first paragraph under the heading

“Introduction to Financial Services” on page 218 of the Annual Report,

that the Budget Performance Monitoring Task Team meets “every


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second month” which was incorrect, to reflect the actual number of

meetings held, as well as the number of meetings that should have

been held.

(t) Amending the section on cost coverage reflected on page 321 of the

Annual Report to indicate clearly if such cost coverage was effected

with unconditional grants, or without unconditional grants.

(u) Correcting the status in respect of all Councillors, except the Speaker

of Council, the Chief Whip and the Mayoral Committee, who are

erroneously indicated in the Appendix as Full-time (FT) Councillors,

and who must be indicated as Part-time (PT) Councillors.

(v) Correcting the Councillor’s name, which was incorrectly reflected on

page 547 as Councillor E Williams, to that of Cllr E Tshazibani

(Williams was Councillor Tshazibani’s maiden name).

(w) Inserting more detailed information on water and electricity losses,

reflecting quantities, comparisons with previous years, monetary value

and mitigation measures, in the Annual Report.

3.4 Recommendations

3.4.1 Oversight Report

The Municipal Public Accounts Committee recommends that the City

Manager submits quarterly reports on the progress made with the

implementation of the Oversight Report recommendations to the Municipal

Public Accounts Committee.

3.4.2 Irregular, Fruitless and Wasteful Expenditure

(a) The Municipal Public Accounts Committee recommends that the

City Manager obtain guidance from National Treasury on how the

Council should address irregular, fruitless and wasteful expenditure

and submit an action plan reflecting remedial action to address the

qualified audit opinion and matters of emphasis raised by the Auditor-

General, as well as the matters of concern expressed by MPAC, as


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set out in points 3.2.1 and 3.2.2 in this Oversight Report to the

Mayoral Committee, MPAC, Council and other Council structures, and

report progress being made on the implementation of the action plan

on a quarterly basis.

(b) The Municipal Public Accounts Committee recommends that, due to

the fact that there are currently very few or no consequences for

officials who incur irregular, fruitless and wasteful expenditure, and as

a measure to curb same, Council adopt the stance that some form of

action be taken against officials involved in such action, unless it can

be proved that such expenditure was incurred because of

circumstances beyond the control of the person(s) involved.

(c) The Municipal Public Accounts Committee recommends that the City

Manager and the Director: Internal Audit and Risk Assurance submit

quarterly reports on the progress made with investigations of alleged

fraud and corruption cases within the institution for possible

intervention by the Committee, if necessary.

(d) The Municipal Public Accounts Committee recommends that the City

Manager and the Chief Financial Officer ensure compliance with

Section 32 of the Municipal Finance Management Act and Regulation

74 of the Municipal Budget and Reporting Regulation in respect of

unauthorized, irregular, fruitless and wasteful expenditure.

3.4.3 Deviations


Manager draw up an Action Plan of measures that can be put in place to

reduce the unacceptable number of deviations, which the Committee deems

to stem from a lack of proper planning.


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3.4.4 Institutional Transformation and Organisatio nal Development

3.4.4.1 Performance Management

The Municipal Public Accounts Committee recommends that in order to

improve the percentage of targets achieved during every financial year, the

City Manager ensures that quarterly performance sessions be held by the

Executive Management Committee to examine progress reports/scorecards in

respect of work done relating to targets, and identify and correct problems in

time before the end of the financial year.

3.4.4.2 IDP, Budget, SDBIP and Ward-based Plans


Manager ensures that the Integrated Development Plan (IDP), Budget,

Service Delivery and Budget Implementation Plan (SDBIP) and Ward-based

Plans be approved at the same time by Council.

3.4.4.3 Vacancies

(a) The Municipal Public Accounts Committee recommends that the City

Manager ensures that the remaining vacant Executive Directors’

positions be filled by not later than 30 June 2014.

(b) The Municipal Public Accounts Committee recommends that the City

Manager ensures the filling of critical vacancies in the Supply Chain

Management Sub-directorate by not later than 30 June 2014.

(c) The Municipal Public Accounts Committee recommends that the City

Manager ensures that urgent attention be given to the speedy filling of

vacancies in the Revenue-generating directorates of the Municipality,

such as Safety and Security and Budget and Treasury.


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(d) The Municipal Public Accounts Committee recommends that all

vacancies in the Internal Audit and Risk Assurance Sub-directorate be

filled as soon as possible with suitably qualified people, to reinforce the

Sub-directorate and enable it to function optimally.

(e) The Municipal Public Accounts Committee recommends that all

vacancies in the Risk Management Sub-directorate be filled as soon as

possible with suitably qualified people, to reinforce the Sub-directorate

and enable it to function optimally.

(f) The Municipal Public Accounts Committee recommends that the

vacancy in the position of Director: Legal Services be filled as a matter

of urgency by the appointment of a legal practitioner with relevant

experience of working in the legal fraternity for several years.

(g) The Municipal Public Accounts Committee recommends that critical

artisan vacancies (plumbers) in the Infrastructure and Engineering

Directorate be filled, employing previously trained plumbers to address

persistent water losses experienced in Nelson Mandela Bay.

3.4.4.4 Succession planning – Budget and Treasury


Manager and the Chief Financial Officer ensure the development of a

succession plan, so that, for the purpose of Council’s annual Audit Process,

expertise is transferred among officials in the Budget and Treasury

Directorate and that officials are capacitated to provide the required

information, technical advice and support to the Office of the Auditor-General,

such plan to take into account the issue of employment equity.


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3.4.5 Basic Service Delivery and Infrastructure De velopment

3.4.5.1 Waste Management


Manager and the Executive Director: Public Health develop practical

strategies for the visible implementation of the Illegal Dumping Strategy

throughout Nelson Mandela Bay, that more funding be provided for the

project, and that the challenge be approached as an institutional

problem.

(b) The Municipal Public Accounts Committee recommends that the

identification of more funding be prioritised to ensure the roll-out of

weekly refuse collection services throughout Nelson Mandela Bay.

3.4.5.2 Bucket system

The Municipal Public Accounts Committee recommends that the project to

eradicate the bucket system, to be implemented by the Executive Director:

Infrastructure and Engineering in the 2013/14 financial year, be monitored and

tested, based on investigations and pilot projects undertaken by that

Directorate, and that it be emphasised that RDP housing delivery, which

includes waterborne sanitation, remain vital for the eradication of the bucket

system.

3.4.5.3 Integrated Public Transport System (IPTS)


Manager and the Executive Director: Infrastructure and Engineering submit

quarterly reports on the progress made with the utilisation of the IPTS

Conditional Grant Funding to the Municipal Public Accounts Committee.


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3.4.5.4 Backlog in repairs and maintenance


Manager and the relevant Executive Directors develop alternative strategies

or funding mechanisms to ensure an adequate level of repairs and

maintenance of municipal infrastructure.

3.4.5.5 Water losses

(a) The Municipal Public Accounts Committee recommends that, in order

to address the high level of water losses experienced in Nelson

Mandela Bay, all Councillors become more active in reporting water

leaks and follow up reported cases until the problem is fixed.

(b) The Municipal Public Accounts Committee recommends that a

communication/media campaign be launched to educate residents

where and how they can report water leaks in their community.

(c) The Municipal Public Accounts Committee recommends that an

independent service provider be hired to assess all aspects of the

municipal water services system, including the billing system, and the

fact that the aging infrastructure is contributing to leakages, with a view

to developing a sustainable solution.

3.4.5.6 Joint Operations Centre (JOC)

(a) The Municipal Public Accounts Committee recommends that the Joint

Operations Centre be re-inforced and be populated with officials from

all directorates to ensure that service delivery complaints reported to

the Centre will be addressed more effectively and efficiently.

(b) The Municipal Public Accounts Committee recommends that an

intensive media campaign be undertaken to make the public aware of

the 0800 20 50 50 number (Call Centre) for reporting all service

delivery related complaints and enquiries.


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(c) The Municipal Public Accounts Committee recommends that the

0800 20 50 50 number be monitored to ensure that calls from township

areas are handled on an equal footing with calls from other residential

areas.

(d) The Municipal Public Accounts Committee recommends that a

quarterly JOC Performance Report be tabled at MPAC.

(e) The Municipal Public Accounts Committee recommends that effective

communication be established between the 0800 20 50 50 Call Centre

and the relevant depots so that callers are promptly advised when

repairs have been effected.

3.4.5.7 Potholes

(a) The Municipal Public Accounts Committee recommends that the

Executive Director: Infrastructure and Engineering undertake a desktop

study to establish best practices in other countries regarding the issue

of potholes.

(b) The Municipal Public Accounts Committee recommends that an

appropriate Potholes Strategy be implemented, based on the outcome

of (a) above.

3.4.5.8 Electricity

(a) The Municipal Public Accounts Committee recommends that concerted

efforts be made to ensure that the Electricity and Energy Directorate

receives its full budget allocation in future financial years to enable it to

provide new state subsidised and informal houses with proper

electricity connections.

(b) The Municipal Public Accounts Committee recommends that, in the

development of the 2014/15 Budget, the Executive Director: Electricity

and Energy, in consultation with the Chief Financial Officer, gives

priority to addressing the lack of adequate lighting throughout Nelson

Mandela Bay, especially in township and informal settlement areas.


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(c) The Municipal Public Accounts Committee recommends that all

components for street lights be sourced locally within South Africa from

reliable, sustainable service providers.

3.4.5.9 Safety and Security


Manager and the Executive Director: Safety and Security ensure that an all-

encompassing strategic plan to address the following issues in the Safety and

Security Directorate be developed and submitted to Council by 30 June 2014:

(i) Traffic Department – covering all operational aspects, including, but not

limited to the services rendered at traffic and licencing centres, with the

emphasis on improvement in productivity, efficiency and service levels,

staffing, the current lack of a 24-hour traffic service, union interference,

acceptable income and revenue collection from fines;

(ii) Fire Department – insufficient budget and understaffing.

3.4.6 Local Economic Development


Manager and the Executive Director: Economic Development, Tourism and

Agriculture submit a progress report incorporating an implementation plan to

the Municipal Public Accounts Committee and Council by 30 June 2014

regarding the establishment of a one-stop shop for small businesses.

3.4.7 Assistance to the Poor (ATTP)


Manager and the Chief Financial Officer ensure that the processing of

applications received in terms of the Assistance to the Poor Scheme be fast-

tracked and that regular progress reports in this regard be submitted to the

Municipal Public Accounts Committee.


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3.4.8 Sports, Recreation, Arts and Culture – Beache s


Manager and the Executive Director: Sports, Recreation, Arts and

Culture ensure the development of a Seasonal Peak Days Plan to

uphold good standards on all municipal beaches and beachfront areas,

and Blue Flag beaches in particular, on peak days when high visiting

numbers are experienced.

(b) The Municipal Public Accounts Committee recommends that

consideration be given to the possibility of accessing additional EPWP

funding to make provision for the day-to-day maintenance of

beachfront infrastructure.

3.4.9 Municipal Financial Viability and Management

3.4.9.1 Supply Chain Management – Declaration of Interest


Manager, the Chief Financial Officer and the Executive Director: Corporate

Services ensure that a proper system be developed by requiring all officials in

the service of the Nelson Mandela Bay Municipality to make a yearly

declaration, disclosing whether or not they or any of their close family

members have business relations with the Municipality or any other state

organisation, and that any misrepresentation by officials in respect of such

declaration be punishable by disciplinary action to be taken by the

Municipality against such officials.


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3.4.10 Good Governance and Public Participation

3.4.10.1 Internal Audit Charter


Manager ensures that all staff and directorates respect and adhere to the

Internal Audit Charter, which allows the Internal Audit and Risk Assurance

Sub-directorate unrestricted access to all documents, personnel, property and

information pertaining to an official audit or investigation and that any

instances of resistance in that regard experienced by the Sub-directorate be

reported to MPAC.

3.4.10.2 Public Participation

The Municipal Public Accounts Committee recommends that public

participation processes, particularly on the IDP and Budget, be made more

effective by making the meetings as accessible as possible to the public in

terms of communication, transport and choice of venues, in order to achieve

improved public attendance and input.

3.4.10.3 By-law enforcement


Manager ensures that all municipal by-laws be strictly enforced, including by-

laws regulating dogs, as dogs that are not kept on leashes on beaches and

other public spaces, pose a health and safety risk to the public.

3.4.10.4 Intergovernmental Relations (IGR) Forum

The Municipal Public Accounts Committee recommends that the

Intergovernmental Relations Forum interact with the Provincial Department of

Education regarding the repair of water leaks at schools, to address the high

level of water losses experienced in Nelson Mandela Bay.


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4. COUNCIL RESOLUTIONS

4.1 Council, having fully considered the NMBM’s 2012/13 Annual Report,

resolves that:

• the Oversight Report be adopted;

• the Annual Report be approved with the reservations, comments and

recommendations included in the Oversight Report;

• the recommendations of the Municipal Public Accounts Committee

reflected in Section 3.4 be adopted and that the implementation

progress be reported on;

• the Annual Report be amended, as reflected in Section 3.3 of the

Oversight Report.

4.2 Council, having fully considered the MBDA’s Annual Report included in

the NMBM’s 2012/13 Annual Report, resolves that:

• the MBDA Annual Report be approved.


23

ANNEXURES

ANNEXURE “A”:

MINUTES OF EACH MUNICIPAL PUBLIC ACCOUNTS COMMITTEE MEETING

(Meeting held on 4 February 2014)

PRESENT: Councillor V J Tutu (Chairperson)









ALSO PRESENT: Councillor M Bobani

Councillor A C G Mfunda

Councillor B Wright

City Manager (Mr M Mbambisa)

Acting Chief Operating Officer (Dr M Chabula-Nxiweni)

Acting Chief Financial Officer (Ms B A de Scande)

Acting Executive Director: Human Settlements (Mr L Petuna)

Acting Executive Director: Electricity and Energy (Mr P Neilson)

Acting Executive Director: EDTA (Ms L Mxenge)

Acting Executive Director: Public Health (Mr A Tolom)

Acting Executive Director: Sport, Recreation, Arts and Culture

(Ms C Williams)

Acting Executive Director : Special Programmes Directorate

(Mr N Dunjana)

Acting Executive Director: Safety and Security (Mr S Brown)


24

Director: Water and Sanitation (Mr B J Martin)

Director: Corporate Services (Mr N Mqulwana)

Director: Internal Audit and Risk Assurance (Ms B Chan)

Acting Director: Labour Relations (Corporate Services)

(Mr H J Viviers)

Assistant Director: Performance Management (Office of the COO)

(Ms A Dowd-Krause)

Assistant Director: Supply Chain Management (Mr N Mantyontya)

Acting Assistant Director: Legal Services (Mr M Ganyaza)

Support Services Officer (Public Health) (Ms U Smith)

Administrative Officer (Office of the COO) (Mr J Wait)

Representative of the Office of the COO (Ms M Nel)

Budget Assistant (Public Health) (S C Mbande)

Committee Administrator (Ms A Craighead)

Committee Secretary (Ms S Joubert)

Committee Secretary (Ms V Heera)

Manager : Office of the Auditor-General (Mr R van Bruggen)

Manager : Office of the Auditor-General (Ms N Lee)

ABSENT WITHOUT

LEAVE: Councillor T Gana

Councillor J N Mapu

STATEMENTS BY CHAIRPERSON

The Chairperson opened the meeting and welcomed two Managers in the Office of the

Auditor-General, Ms N Lee and Mr R van Bruggen, at this very important MPAC meeting

where the Committee would consider the Auditor-General’s 2012/13 Report as well as

the Municipality’s 2012/13 Annual Report.

The Chairperson also stated that a workshop for all Councillors to familiarise them with

the 2012/13 Annual Report would possibly be held.

NOTED


25

APOLOGIES

An apology was submitted on behalf of Councillor T S Noqoli, who was unable to attend.

There were also apologies from the Acting Executive Director: Infrastructure and

Engineering, Mr W Shaidi, who was represented at the meeting by Mr B Martin, and

from the Director: Communications, Mr R Williams, who was attending a meeting of the

Bid Adjudication Committee.

NOTED

APPLICATIONS FOR LEAVE OF ABSENCE IN TERMS OF PARAG RAPH 3 OF THE

CODE OF CONDUCT

Councillor M E G Harning had been granted leave of absence by the Speaker.

RESOLVED:

That leave of absence from this meeting of the Committee be granted to Councillor M E

G Harning.

DISCLOSURE OF INTERESTS BY COUNCILLORS IN TERMS OF PARAGRAPH 5

OF THE CODE OF CONDUCT (SCHEDULE 1 OF THE SYSTEMS ACT NO. 32 OF

2000)

There were no disclosures.

DISCLOSURE OF INTERESTS BY OFFICIALS



26

REPORT BY EXECUTIVE DIRECTOR: CORPORATE SERVICES

19. 2012/13 ANNUAL REPORT : MEETINGS OF THE MUNICIPAL P UBLIC

ACCOUNTS COMMITTEE (3/2/9/1) (Item 1, Agenda p. 3)

NOTED

20. 2013/14 ANNUAL REPORT OF THE NELSON MANDELA BAY MUNICIPALITY

(10/1/1/1) (Item 2, Agenda p. 3)

NOTED

21. AUDITOR-GENERAL’S REPORT FOR 2012/13 – PRESENTA TION,

QUESTIONS AND ANSWERS (5/20/2/6/1) (3/2/9/3) (Item 3, Agenda p. 3)

21.1 Presentation by Auditor-General representative

Mr R van Bruggen, Manager in the Office of the Auditor-General, gave a brief

presentation on the Auditor-General’s Report on the Financial Statements: Year 0

(2012/13) as set out in Section 6.2.1 on pages 346 to 354 of the 2012/13 Annual Report.

NOTED

21.2 Discussion and questions in respect of Auditor -General’s Report

21.2.1 Question re Councillors on Supply Chain (Bid ) Committees (Paragraph. 35,

7th bullet point, p. 351): Sufficient evidence not supplied that councillors of the

municipality did not serve in bid committees

In response to a query by Councillor Captain about this point, it was explained that

because of incorrectly maintained supply chain management files, with attendance

registers missing from some of the samples taken, the Auditor-General could not

establish beyond doubt that Councillors were not members of committees dealing with

the supply chain process. (See also Min. No. 21.2.4 below).


27

NOTED

21.2.2 Question re irregular expenditure opening ba lance (Paragraph 6, p. 347):

Irregular expenditure - Opening balance for 2011/12 understated by R710 million

In response to concern expressed by Councillor Bobani about this matter, it was

explained that during the 2011/12 audit process, files in respect of expenditure of R710

m relating to supply chain matters could not be provided. These files were supplied for

the 2012/13 audit process for re-auditing, but certain information was still lacking, and

re-auditing would be necessary.

NOTED

21.2.3 Questions re targets not achieved – Need for quarterly reports and quarterly

performance assessment sessions (Paragraph 21, p. 3 49): Only 45% of 112

planned targets achieved in 2012/13

The Auditor-General’s representatives at the meeting emphasised that targets should be

realistic. Setting a target amounted to a commitment by management to achieve that

target. The auditors stated that during the auditing process, it was found that the

numbers provided in the Annual Performance Report were reliable, but the problem was

that many targets were not achieved, and that persons were not held accountable for

failing to achieve the targets and to manage the budgeting process.

The issue of the achievement of targets was again raised later during the meeting. In

response to a question how it could be ensured that the failure in achieving targets was

not repeated, the City Manager stated, and it was agreed, that it would be crucial to

have Quarterly Performance Sessions where management could examine progress

reports/scorecards in respect of set targets. Problems could then be identified and action

taken timeously.

During the course of the meeting, several MPAC members also emphasised the need

for quarterly progress reports to be submitted to MPAC for it to assess progress and

identify problems in time. It was stated that MPAC could not function properly without


28

such a mechanism. Councillor Biddulph also suggested that MPAC identify separate

Quarterly MPAC Meetings on its calendar of meetings for considering quarterly reports

and focusing exclusively on making progress in terms of the Oversight Report.

RESOLVED:

(a) That in order to improve the percentage of targets achieved during every financial

year, Quarterly Performance Sessions be held by management to examine

progress reports/scorecards in respect of work done in respect of targets and

identify problems and correct them in time before the end of the financial year.

(b) That MPAC consider identifying separate Quarterly MPAC Meetings on its

calendar of meetings to consider quarterly reports and focus on progress in terms

of the Oversight Report.

21.2.4 Systems to disclose Irregular Expenditure an d new SCM Systems

(Paragraph 6, p. 347): Irregular expenditure the basis for qualified audit opinion

Councillor Odendaal pointed out that the basis for the qualified audit opinion was the fact

that the Municipality did not have adequate systems in place to identify and disclose all

the irregular expenditure incurred during the 2012/13 financial year, as required by the

MFMA.

He referred to the Municipality’s comments on the Audit Report (paragraph 6, p. 355)

that it would implement the necessary systems to identify and disclose irregular

expenditure relating to tenders awarded. He said that MPAC would have to ensure that

the Municipality implemented the remedial processes to eliminate the shortcomings that

had resulted in the qualified audit opinion.

He furthermore referred to the section under the heading: “Component A: Auditor-

General’s opinion of Financial Statements (Year -1, namely 2011/12) (p. 343) and asked

whether the Auditor-General was satisfied with the remedial action that had been

implemented, and what the major shortcomings in respect of the supply chain

management process were.


29

In response, Ms N Lee, Manager in the Office of the Auditor-General, pointed out that

the steps set out under the heading “Remedial Action Taken” in the second column of

the table (p. 343) were not proposals by the Auditor-General, but by management. She

said that the auditors were awaiting a detailed Action Plan from Internal Audit.

Ms Lee stated that management had made great efforts during the 2012/13 audit to

provide the auditors with the required files relating to the R710 m in irregular expenditure

that was carried over from the 2011/12 financial year. However, a large share of the

expenditure incurred in the 2012/13 audit year related to tenders that were issued some

years ago, at which stage there was not a centralised filing system, as files were kept in

the various Directorates. It was therefore found that a lot of documentation was missing

from the files, and for that reason, the auditors could not confirm that there had been

compliance with all relevant laws and regulations. She said that the issue of

documentation management related mostly to the “older” tenders, and that the auditors

had met with the City Manager and the Acting Chief Financial Officer about an Action

Plan for filing to be implemented in the 2013/14 financial year.

Regarding the way forward, she stated that the irregular expenditure had to be

considered by Council’s Subcommittee on Unauthorised, Irregular and Fruitless and

Wasteful Expenditure and fully investigated and resolved, as required by the MFMA. It

was also emphasised that action by leadership would be required to resolve this matter.

The Assistant Director: Contracts (Supply Chain Management), Mr N Mantyontya,

reported as follows on remedial action taken in respect of the supply chain management

process:

• A Contracts Register was developed which tracked tenders through all the

processes, from the specification committee stage to the awarding and

management of contracts.

• From 1 October 2013 an online system was introduced in respect of informal

tenders, designed to rule out opportunities for tampering.


30

• Calculations regarding formal tenders were done in terms of an electronic

BBBEE- based pricing system, which replaced the preference points scoring

system.

• A new filing system was introduced with an index indicating every document

that had to be in every file.

• In response to a question whether the system was regularly tested, and

whether pages of documents were numbered, so that it could be spotted

whether a page had been removed, Mr Mantyontya stated that the online

system was reviewed every six months and that the pages of all documents in

the files were stamped and numbered.

• The splitting of tenders, which was done in order to avoid complying with SCM

Regulations, was ruled out by new control measures.

The Committee expressed concerns about the instances of poor management in the

past, such as the inadequate record-keeping, the way in which the IPTS grant was spent

and the splitting of tenders, and felt that those responsible should be brought to book.

Councillor Odendaal said that it was particularly disturbing that senior officials in charge

of the supply chain management process had not been aware of the change in

legislation when National Treasury in December 2011 implemented the BBBEE-based

pricing of tenders, replacing the preference points scoring system.

However, he believed that the new measures introduced by the Municipality from the

2013/14 financial year would bring about a greatly improved Supply Chain Management

system. It was agreed that a written report on the new systems and processes in the

Supply Chain Management Sub-directorate be submitted to MPAC.

Councillor Ntshanyana stated that the new supply chain management system seemed

capable of eliminating the weaknesses of the past, and he appealed to the City Manager

to ensure that there would in future be serious consequences for those responsible for

infringements.


31

Councillor Bobani requested that full reports be submitted to MPAC on the following

matters listed as non-compliance issues, namely:

(i) the utilisation of parts of the IPTS grant for purposes other than stipulated in the

grant framework, as required by Section 15(1) of the Division of Revenue Act;

and

(ii) the splitting of the procurement of goods and services into parts or items of

smaller value to avoid complying with the requirements of SCM Regulations 19(a)

and 36(1).

More details in respect of the improved Supply Chain Management system were

provided by the Acting Chief Financial Officer during the discussion of the need for

adequate systems to identify and disclose all irregular expenditure incurred.

Details were also requested concerning the Municipality’s response (in paragraph 6, p.

355) that the necessary systems would be implemented to identify and disclose irregular

expenditure relating to tenders awarded, and that management would institute the

necessary action to ensure an appropriate management system.

The Acting Chief Financial Officer (Ms B de Scande) gave the following brief

presentation:

At the beginning of the audit process, the auditors requested a sample of files. If there

were, for example, 300 files, the auditors were given a sample of 50 files. Going through

the files, they looked for various documents such as attendance registers, tax

certificates, contracts, service level agreements, etc. A list of about 20 to 25 different

documents were required to be present in the file in terms of the Auditor-General’s very

strict criteria for a supply chain file. Some of the documents had to be originals, or

certified copies.

If the required information was not available in a supply chain file, the auditors

considered the value of the tenders awarded or the payments made. If it was found that

the sample of 50 files represented, for example, R50 million’s worth of incorrect or


32

missing information, the total worth of incorrect or missing information for the total 300

files is calculated on that basis.

It was explained that even if one document was missing from a file, for example, an

attendance register, the whole tender would be deemed irregular. It did not necessarily

mean that fraud and corruption had been committed in that instance in the Municipality;

it meant that the Municipality was non-compliant with the MFMA, and the definition of

irregular expenditure was non-compliance with any clause or section of the MFMA.

Ms De Scande said that if the Municipality, in preparing its Financial Statements, could

have determined beforehand what it perceived to be irregular expenditure in respect of

the supply chain files and had declared that in the Financial Statements, it would not

have resulted in a qualified audit opinion (although still not a clean audit).

She stated that the process that had been undertaken in the Supply Chain Management

Sub-directorate to address the situation was first to develop a Contracts Register.

Working with the active tenders, any payment taking place was recorded as an active

contract, and in that way it was ensured that every file was listed. It was now also

understood what information was required, and the next step was to find that

information. Supply Chain Management was currently engaged in that process. From 1

July 2013, a template was put in place and a list made of all the information required,

and confirmed with the Auditor-General. For every file created in Supply Chain

Management, the required information must be found and ticked off from a data-list.

Once that was completed, the same process would be undertaken in respect of past

tenders.

Ms De Scande stated that she worked closely with Internal Audit, who would undertake

an interim random check of the new system to make sure that the required information

was in the files. She added that she was confident that the new system would resolve

the auditing problems experienced in the past in respect of supply chain files.

In response to a query, Ms De Scande stated that there was a very clear distinction

between the irregular expenditure referred to in paragraph 6, p. 347, which arose from

the fact that supply chain management files were not in place. However, the

investigations into allegations of fraud mentioned in paragraph 48, p. 354 specifically


33

referred to alleged fraudulent actions. Some examples of fraudulent actions were

tampering with documents, or deliberately influencing a service provider to change a

quote. A file could therefore have all the required documents in place and would not give

rise to irregular expenditure from a supply chain filing point of view, but it could be under

investigation due to an allegation of fraud. The Director : Internal Audit added that the

legal definition of fraud was “an act that is unlawful, intentional and a misrepresentation

through which a third party is prejudiced” (in this case the Municipality). She also pointed

out that the 20 cases currently being investigated by Internal Audit were all based on

allegations which had not yet been proved.

The Committee thanked the Acting Chief Financial Officer for her verbal report, and it

was requested that the information provided on the management of supply chain files

also be provided in writing to MPAC.

The Director: Internal Audit stated that during the past three years Internal Audit had

undertaken audits of supply chain management issues, and had brought the findings to

the attention of management. She said that Internal Audit would continue to audit the

new systems in the Supply Chain Management Sub-directorate, and would, with the

permission of the City Manager, submit such reports to MPAC.

NOTED AND RESOLVED:

(a) That the new systems introduced in the Supply Chain Management Sub-

directorate to improve tender processes and eliminate irregular practices, as

described to the MPAC meeting on 4 February 2014 by the Assistant Director:

Contracts in the SCM Sub-directorate, Mr N Mantyontya, be submitted in writing

to the Committee

(b) That the verbal report provided by the Acting Chief Financial Officer (Ms B de

Scande) on the new management system for supply chain files and

documentation to ensure compliance with the MFMA, be submitted in writing to

MPAC.


34

(c) That the Project Leader of the Integrated Public Transport System submit a full

report on the utilisation of parts of the IPTS grant during the 2011/12 financial

year for purposes other than stipulated in the grant framework, as required by

Section 15(1) of the Division of Revenue Act, to MPAC via the Office of the City

Manager, also stating the circumstances and the persons involved in such

expenditure,

(d) That the Director: Supply Chain Management submit a full report on the splitting

of the procurement of goods and services during the 2011/12 financial year into

parts or items of smaller value to avoid complying with the requirements of SCM

Regulations 19(a) and 36(1), to MPAC via the Office of the City Manager.

21.2.5 Unauthorised expenditure (Paragraph 10, p. 3 48) Overspending in respect of a

number of votes within approved budget a major concern

Councillor Odendaal referred to paragraph 10 (p. 348) of the Auditor-General’s Report

on the Financial Statements and stated that the unauthorised expenditure amounting to

R270,7 m incurred due to overspending in respect of a number of votes on the approved

budget was a major concern. He also found the Municipality’s response that

unauthorised expenditure was investigated and steps taken to recover it (paragraph 10,

p. 356), unsatisfactory in view of the problems experienced by MPAC and its

Subcommittee on Unauthorised, Irregular or Fruitless and Wasteful Expenditure in

respect of investigating or recovering such expenditure.

The Acting Chief Financial Officer stated that it was slightly more difficult to eliminate

unauthorised expenditure than was the case with irregular expenditure. Unauthorised

expenditure came about in matters such as the budgeting for retirement provision. At the

end of June every year, an actuarial valuation was done, and because of unforeseen

market fluctuations between the time of preparing the budget and the actuarial

evaluation, it could turn out that the retirement provision had been under-budgeted.

Another instance was the depreciation of assets, where an asset was fully depreciated,

but still had a useful life. The asset then had to be re-stated for the auditing process and

the depreciation process re-started, which could result in an increase in the depreciation

value, because of the asset’s useful life.


35

The Acting Chief Financial Officer said that the Budget and Treasury Directorate would

strategise to find more accurate methods to counter unauthorised expenditure.

Discrepancies giving rise to unauthorised expenditure could also be identified and

reported to Council throughout the year, so that it could be ratified or condoned. In that

way, it would not be identified as an unaddressed issue during the auditing process.

NOTED

21.2.6 Annual Financial Statements – Questions re a nnual financial statements,

misstatements (Paragraphs 25 - 26, p. 350) Financial statements not prepared

in all material respects according to MFMA requirements, and material

misstatements of revenue and expenditure identified by auditors

Councillor Bobani and Councillor Mafaya expressed concern about the reference to

“material misstatements” of revenue and expenditure identified by the auditors in the

submitted financial statements (paragraph 26, p. 350).

The Acting Chief Financial Officer (Ms B de Scande) said that these misstatements were

not the reason for the qualified audit opinion, as the only reason for that was the

inadequate state of the supply chain files and documentation. The misstatements were

administrative issues, resulting from different interpretations of the GRAP standards or

financial policies in the preparation of the financial statements, so that the Auditor-

General was not necessarily in agreement with the way in which the Municipality had

accounted for its transactions.

She said that during the audit, the Auditor-General picked up discrepancies in the

financial statements and gave the Municipality the opportunity to debate, discuss and

correct them. During the 2012/13 audit, most of the discrepancies were corrected. The

only matter that could not be corrected, was the inadequate state of the supply chain

files, because there was not enough time to determine what information was missing

and, based on that, determine and declare a realistic value of irregular expenditure.

Ms De Scande stated that misstatements were not acceptable, but the Budget and

Treasury Directorate would try to expand its capacity in order to check financial

statements for correctness before they were submitted to the Auditor-General, and to


36

complete the preparation of the financial statements earlier to allow time for an

independent assessment to pick up and correct administrative errors before the auditing

process.

Ms Lee, Manager in the Auditor-General’s Office, confirmed that all the material errors

were corrected by management, except in the case of the supply chain files, because of

the restricted time, as explained above. She suggested that in order to ensure greater

accuracy in the first place, financial statements could be closed off earlier, in order to

allow more time for checking for accuracy.

NOTED

21.2.7 Questions re functioning of MPAC and Interna l Audit

Councillor Dashwood asked whether the Auditor-General was aware of the following two

“major issues”:

(i) That the Municipal Public Accounts Committee was not functioning

properly; and

(ii) That the Internal Audit Sub-directorate was being hampered in its work by

outside interference and political interference.

Ms N Lee, Manager in the Auditor-General’s Office, responded by referring to

paragraphs 40 to 47 (pp. 352 and 353) in the Audit Report dealing with Internal Control,

Leadership, Financial and performance management and Governance, which, she said,

contained the “root causes” of the audit findings. She referred in particular to paragraph

47 of the Audit Report (p. 353), in which it was stated that the recommendations made

by Internal Audit and the Audit Committee were not adequately implemented. She stated

that Internal Audit was functioning, but that senior management was not actively

responding to Internal Audit’s suggestions and recommendations, and were not held

responsible and accountable for the issues identified.

Councillor Bisset referred to the statement in the Audit Report (paragraph 48, p. 354)

that at the time of the report, 20 investigations were being conducted relating to

allegations of fraud, corruption and failure to comply with SCM requirements. He stated


37

that MPAC also needed an overview of these cases, as the Committee required such

information as a first step to working towards a clean audit.

Councillor Wright posed the question whether MPAC could be guaranteed that Internal

Audit had unhampered access to investigate any irregularities in, for instance, Supply

Chain Management matters.

The Director: Internal Audit replied that in terms of the Internal Audit Charter and a

Charter that was signed by the previous City Manager, Dr Lindiwe Msengana-Ndlela,

Internal Audit shall have unrestricted access to all documents, personnel, property and

information, etc. pertaining to the audit or the investigation concerned. She added that

Internal Audit experienced resistance “from time to time, almost on a regular basis”, from

certain officials who refused to co-operate in giving Internal Audit information.

Sometimes interference was also experienced from unions when Internal Audit tried

merely to ask for information about processes and persons.

Councillor Wright said that the situation sketched above could be a huge stumbling-

block to ever achieving a clean audit.

Later during the meeting, Councillor Dashwood referred to paragraph 27 (p. 350) in

which the Auditor-General stated that “reasonable steps were not taken to prevent

unauthorised, irregular and fruitless and wasteful expenditure”. He stated that until

Internal Audit and MPAC could function without interference, nothing would be achieved,

and he called upon the City Manager for his commitment and full support to eliminate

such interference.

Councillor Ntshanyana requested the City Manager to ensure that the aforementioned

Charter signed by the previous City Manager, as referred to above by the Director:

Internal Audit, would be respected and followed to the letter, and that Internal Audit’s

investigations would be reported to MPAC, as well as any instances of resistance

experienced by Internal Audit in the course of its work. He emphasised that MPAC and

Internal Audit should work hand in hand.


38

RESOLVED:

(a) That the City Manager ensure that all individuals and organisations within the

Nelson Mandela Bay Municipality respect and adhere to the terms of the Internal

Audit Charter and the Charter signed by the previous City Manager, Dr Lindiwe

Msengana-Ndlela, which agreements grant the Internal Audit and Risk

Management Sub-directorate unrestricted access to all documents, personnel,

property and information, etc. pertaining to an audit or an investigation

undertaken by the aforesaid Sub-directorate in the course of its duties.

(b) That any instances of resistance experienced by the Internal Audit and Risk

Management Sub-directorate in the course of seeking information relevant to an

audit or investigation undertaken in the course of its duties, be reported to MPAC.

21.2.8 Under-spending on roads and storm-water infr astructure budget by

R184,5 m (Paragraph 13, p. 348)

In response to a question concerning the above, the Director: Water and Sanitation

stated that the reported under-spending related to two matters:

(i) Funding from the conditional grant for the IPTS Project had to be carried

over, but although it was recorded as under-expenditure, the money was

not lost to the Municipality, and much of it was already being processed for

payment as a result of a commitment from National Treasury finalised

during the previous week on 27 and 28 January 2014.

(ii) A R10 m grant from European Union funding had to be carried over, as it

could not be spent in the previous financial year, because an appropriate

Council meeting was not held before the end of the 2012/13 financial year

so that the money could be included on the budget.

In response to a further question regarding the roll-over of the IPTS funding and whether

there was enough time for its utilisation before the end of the 2013/14 financial year, it

was confirmed that the roll-over had taken place and that contractors had started

working on the project.


39

During further discussion, Councillor Captain proposed, and it was agreed, that quarterly

reports on progress made with the utilisation of the IPTS conditional grant funding be

submitted to MPAC.

NOTED AND RESOLVED:

That quarterly reports on progress made with the utilisation of the IPTS conditional grant

funding be submitted to MPAC.

21.2.9 Material losses and impairments – water loss es amounting to R208,4 m

(Paragraph 12, p. 348)

The Director: Water and Sanitation reported that regular reports on actions taken to

reduce water losses and non-revenue water were submitted to the Infrastructure and

Engineering Committee. A big challenge was that the Directorate did not have sufficient

funding to deal with non-revenue water in a holistic manner. Submissions that were

made to the Department of Water Affairs were unsuccessful. However, it was foreseen

that more success in obtaining assistance from National Government would be possible

in future.

It was pointed out that there were a number of causes of water losses, and the Water

and Sanitation Sub-directorate recently discovered that an external housing

development of about 2 000 houses was constructed within the Municipal area and the

houses connected to the water supply without an official water meter in place. That

matter was addressed, and good progress had also been made in working together with

the Human Settlements Directorate to ensure that the water consumption in new

housing developments was accounted for in the Municipal billing system.

The Director: Water and Sanitation stated in response to a question that there was a

downward trend in the extent of non-revenue water. He added that the Municipality

presented information on its actions taken and progress made at quarterly meetings of

the Department of Water Affairs, and the Department was satisfied regarding water

losses with the Municipality’s efforts.


40

NOTED

21.2.10 No mention made of electricity theft in Aud itor-General’s Report

In reply to a question about the serious matter of electricity theft not being referred to in

the Auditor-General’s Report, Ms Lee stated that compared to the “materiality figure” for

the loss caused by theft of electricity, the losses were, in auditing terms, immaterial, and

therefore not mentioned in the Auditor-General’s Report.

NOTED

(The meeting was adjourned for lunch at this stage, the time being 13:05, and it

resumed at 13:30.)

21.2.11 Questions re allegations of financial misco nduct against senior managers

not always tabled before Council; and independent i nvestigator not

appointed to investigate allegations of misconduct (Paragraphs 32 and 33,

pp. 350 and 351)

In response to questions by Councillor Bobani why the above matters had not been

attended to, as required by law, the City Manager stated that they were supposed to

have been dealt with, but that it did not happen at the time (which was before his term of

office started).

He stated that these issues would now be attended to as part of the Action Plan that was

being put in place. The details of each of the allegations would be investigated, and with

the advice of Legal Services, it would be decided how to proceed in respect of every

case.

Councillor Odendaal asked the Director: Internal Audit for an opinion on when such

allegations should be tabled before Council, or whether the onus was on the accounting

officer to first investigate the allegations before they were brought to Council’s attention

to take appropriate action.


41

The Director: Internal Audit stated that every investigation conducted by Internal Audit

could lead to disciplinary action, if there was evidence, and/or there could also be

criminal action. While these processes were still in progress, the implicated parties had

the right to present their account of the matter at a disciplinary hearing. She said that it

would not be advisable to report the details of cases to MPAC or Council before those

processes had been finalised. However, Internal Audit could provide details of, for

instance, a tender irregularity, but without disclosing the name of the supplier or the

person or persons implicated. If more details were reported, the information could be

leaked to the press and the investigation compromised. It would therefore not be

beneficial to divulge cases to Council before they were finalised, as Council’s meetings

were open to the public and the press.

She added that Internal Audit was busy with plans to establish an Anti-fraud and Anti-

corruption Co-ordination Committee, which would have access to the information that

had to be reviewed by Internal Audit, and would also decide, via consensus, what

information could be disclosed.

NOTED

21.2.12 Human resources management (Paragraph 34, p . 351)

With reference to the response by the Municipality (p. 359, paragraph 34) that the Acting

Chief Financial Officer who was appointed for a period of more than six months was the

only official with the required qualifications, it was stated that a different solution should

have been found, as the appointment for more than six months remained a

transgression of the Municipal Systems Act.

It was also pointed out, and RESOLVED that the statement on p. 359 that a permanent

Chief Financial Officer has since been appointed, should be corrected to reflect the fact

that that appointment had been declared invalid.


42

21.2.13 Non-compliance re business dealings – award s made to service providers

in service of municipality, other state institution s – failure to declare

private or business interests in municipal contract s, etc. (Paragraphs 36 to

39, p. 352)

Councillor Odendaal stated that the responses by the Municipality (p. 360) to the effect

that circulars would be issued to municipal employees to request them to disclose

particulars of awards made to them or to their close family members, were unlikely to be

effective, as it was naïve to expect that employees would voluntarily make such

disclosures. A proper system to regulate how employees disclose their business

dealings with state organisations had to be implemented.

The Director: Internal Audit elaborated as follows on the issues raised in paragraphs 36,

37, 38 and 39 (p. 352):

In terms of Council’s Code of Conduct, no official may conduct private business without

the permission of the Municipality, but Council could grant permission to officials to

conduct a second business outside of Municipal business hours.

However, the Supply Chain Management Policy stated clearly that no official of the

state, which included Municipal officials, may do business with the state. The Auditor-

General conducted audits of all state organisations throughout the country and had

access to information relating to all state officials. By using a system to match the ID

numbers of all state officials and the ID numbers embedded in the Municipal Supply

Chain Creditor’s system, information was obtained about Municipal officials who were

non-compliant in respect of business dealings with the state. The auditors then asked

the Budget and Treasury Directorate for a list of all payments made to specific suppliers,

and those payments came up as the total payment made to related parties within the

Municipality.

The Director: Internal Audit concluded by pointing out that within the Municipality there

was currently no regulated system for the declaration of business dealings by officials.

She said that recommendations had been made over the years that Human Resources

should implement a system to obtain an annual declaration from every official, as it was


43

a transgression if an official was partaking in another business without the permission of

the Municipality, but it was a further transgression if an official was doing business with

the Municipality.

Councillor Odendaal then moved, and it was agreed, that MPAC submit the formal

recommendation as set out below.

RESOLVED TO RECOMMEND:

That all officials in the service of the Nelson Mandela Bay Municipality be required to

make a yearly declaration disclosing whether or not they or any of their close family

members have business relations with the Municipality or any other state organisation,

and that any misrepresentation in respect of such declaration will result in disciplinary

action by the Municipality against the officials concerned.

22. 2012/13 ANNUAL REPORT : PUBLIC PARTICIPATION PR OCESS (3/2/9/1)

(Item 4, Agenda p. 4)

NOTED

23. 2012/13 FINANCIAL YEAR : UNAUTHORISED EXPENDITU RE (5/1/2) (5/1/3/R)

(Item 5, Agenda p. 5)

This item was deferred to the next meeting of the Committee

The meeting terminated at 14:20.

COUNCILLOR V J TUTU

C H A I R P E R S O N


44







Councillor T Gana


Councillor J N Mapu





ALSO PRESENT: Councillor N S Soul (12:25)

Acting City Manager (Dr M Chabula-Nxiweni)


Executive Director : Corporate Services


Acting Executive Director: Infrastructure and Engineering

(Mr B Huttoni)




(Ms C Williams)


Assistant Director: Human Settlements (Mr Z Nkayitshana)

Director: Corporate Services (Mr S Javu)





45


Performance Management Practitioner (Office of the COO)

(Mr W Obeng)





The Chairperson stated that it was noted with concern that the City Manager was not

available to provide direction and guidance during the consideration by the Committee of

the Annual Report, and that the Acting City Manager, Dr M Chabula-Nxiweni, was also

engaged in other Council business and could not join the meeting at 09:00.

NOTED

APOLOGIES

Councillor Odendaal requested the Chairperson’s permission for all the Democratic

Alliance members of MPAC to leave the meeting at 13:45 in order to attend a meeting

with members from their party’s provincial Head Office, and it was agreed that the

Committee’s meeting would terminate at that time.

NOTED


CODE OF CONDUCT

Councillor M E G Harning had been granted leave of absence by the Speaker.

RESOLVED:

That leave of absence from this meeting of the Committee be granted to Councillor M E

G Harning.


46



2000)




REPORT BY EXECUTIVE DIRECTOR : CORPORATE SERVICES

24. AUDITOR-GENERAL’S 2012/13 REPORT (CONTINUED)

Page 353, Paragraph 42 - Vacant senior management p ositions – Also page 353

and page 354, Paragraphs 47 and 48

Great concern was expressed at the long delay in filling the more than 80% of senior

management vacancies during the 2012/13 year. It was pointed out that Council had

earlier indicated that all senior management vacancies would be filled by the end of

February 2014. It was proposed that if that target was not met, MPAC would request a

progress report regarding the senior appointments, and raise the matter as an issue of

concern in the Oversight Report. Regarding the vacancies in the Internal Audit Sub-

directorate, it was:


(That all vacancies in the Internal Audit and Risk Management Sub-directorate be filled

as soon as possible with competent persons to reinforce the Sub-directorate and enable

it to function optimally.

(See also Min. No. 25.7/2014 below regarding the fi lling of senior vacancies.)


47

25. 2012/13 ANNUAL PERFORMANCE REPORT OF THE NELSON MAN DELA

BAY MUNICIPALITY – CHAPTER 1: EXECUTIVE MAYOR’S FOR EWORD

(3/2/9/1) (Annual Report p. 11)

25.1 Page 12 – Public Participation

The Committee agreed that in view of the very small turn-out at the meetings of the IDP

and Budget public participation programme, the programme could not be described as

“vibrant”. Councillor Biddulph said that there would be more meaningful input at these

meetings if venues were chosen that were closer to where communities lived. That

would mean more meetings, but a better attendance. Councillor Bisset stated that

proposed improvements to secure a better attendance, such as transport arrangements

to venues, and making use of the social media networks, were discussed at the last

Council meeting.

RESOLVED:

That the word “vibrant” be taken out of the first sentence of the second paragraph on

page 12 of the Foreword in the Annual Report, making the sentence to read: “An IDP

and Budget public participation programme was undertaken, which saw the leadership

address and interact with local communities.”

25.2 Page 12, Paragraph (b) - Launch of Integrated Public Transport System

Councillor Odendaal considered it inaccurate to describe the IPTS as a highlight at this

stage, as it was not yet functional. However, Councillor Ntshanyana stated that the

launch in itself was indeed a positive event, but that the problems experienced in

implementing the project should be listed as a challenge under the heading “Further

challenges” on page 13.


48

RESOLVED:

(a) That, whilst it was valid to describe the launch of the IPTS as a highlight, it be

admitted in the report that there were problems in the 2012/13 around the

implementation of the project, and that the latter point be listed as one of the

challenges experienced during the 2012/13 financial year.

(b) That the problems experienced regarding the implementation of the IPTS project

be added as one of the challenges listed on page 13 of the Annual Report.

25.3 Page 12, Paragraph (d) – Fast-tracking Illegal Dumping Strategy

Councillor Dashwood described the statement that the strategy against illegal dumping

had been “fast-tracked” as inaccurate, in view of the persistent illegal dumping still being

observed. Councillor Ntshanyana agreed, saying that Nelson Mandela Bay was dirty,

and that the writers of the report should rather have stated that the strategy had not yet

been implemented effectively, and that that was a challenge.

RESOLVED:

That it be listed as one of the challenges experienced in the 2012/13 financial year that

the fast-tracking of the Illegal Dumping Strategy has not yet been implemented

effectively, and that paragraph (d) on page 12 be amended accordingly.

25.4 Page 12, Paragraph (f) – EPWP initiatives

Councillor Biddulph said that there was a vast pool of funding available for EPWP

projects, and that the NMBM should tap into those (as other big centres in the country

have done) in order to employ people to do maintenance work, e.g. tidying the

beachfront, cutting the grass on public open spaces and picking up litter.

Councillor Bisset stated that a meeting about the EPWP would be held the next day at

the City Hall, where Councillor Biddulph’s proposals could be discussed. He also


49

confirmed that there were systems in place to access the funding available for EPWP

projects.

RESOLVED:

That mention be made in the Annual Report of the possibility of even more job creation

through accessing the considerable funding available for EPWP projects.

25.5 Page 13 – Bucket system

It was stated that in view of the large numbers of people still having to use the bucket

system, it was “mischievous” to report on page 13 that the institution was committed to

the eradication of the bucket system.

Mr B Hutton, Director: Infrastructure and Engineering, stated the report was correct in

respect of the situation in 2012/13. The delay had been caused by the fact that

Councillors had asked the Infrastructure and Engineering Directorate to investigate

alternative methods of sanitation. A visit to Durban was undertaken to study alternative

sanitation systems in that city. The Directorate implemented and evaluated pilot projects

in the NMBM, e.g. in Schauderville, and based on that, tenders would now be invited. Mr

Hutton confirmed that in the new financial year (2013/14) an amount of R1,5 million was

about to be spent on alternative sanitation, and it was planned to spend a further R9 m

before the end of 2013/14.

NOTED

25.6 Page 13 – Receipt of qualified audits

Councillor Odendaal stated that whilst important changes had been made to improve

supply chain management systems, there were still many unaddressed shortcomings

that were standing in the way of obtaining a clean audit opinion in 2014.

Councillor Mapu pointed out that it had to be acknowledged that progress had been

made since the period covered by the 2012/13 report. The Municipality now had a


50

permanently appointed accounting officer, and other senior positions were about to be

filled.

NOTED

25.7 Page 13 – High senior management vacancy rate

The Executive Director: Corporate Services reported that apart from the fact that a

permanent City Manager and Executive Director: Corporate Services had now been

appointed, interviews for the appointment of Executive Director: Infrastructure and

Energy; Executive Director: Electricity and Energy; and Executive Director: Human

Settlements had been completed. Short-listing would start the next day (14 February

2014) for the appointment of Chief Operating Officer and Executive Director: Economic

Development. By end February 2014, most of the work concerning the appointments

would be done, and progress reports in that regard would be tabled at the Council

meeting on 27 February 2014.

NOTED

At the end of consideration of the Executive Mayor’s Foreword and Executive Summary,

the Committee agreed to highlight the following recommendations:


(a) That the public participation process, particularly in respect of the IDP and

Budget, be made more effective by making the meetings as accessible as

possible to the public in terms of communication, transport and choice of venues,

in order to achieve improved public attendance and input.

(b) That practical strategies be developed for the visible implementation of the Illegal

Dumping Strategy throughout the Metropolitan area, and that more funding be

provided for the project, which should be approached as an institutional problem,

and not the responsibility of only the Public Health Directorate.


51

(c) That the project to eradicate the Bucket System to be implemented by the

Infrastructure and Engineering Directorate in 2013/14, based on investigations

and pilot projects undertaken by that Directorate, be monitored and tested, and

that it be emphasised that RDP housing delivery, which includes waterborne

sanitation, remains vital for the eradication of the bucket system.

(d) That regular Quarterly Reports on progress made with the implementation of the

Oversight Report recommendations be submitted to MPAC by the Office of the

City Manager.

(e) That an extensive report on the implementation of the IPTS and the expenditure

of the conditional grant for the project be submitted to MPAC.

(f) That the following two points be added under the paragraph “Further challenges

experienced during the 2012/13 financial year” on page 13 of the Foreword:

• Problems with the implementation of the Integrated Public Transport

System.

• Problems with full implementation of the Illegal Dumping Strategy.

26. CHAPTER 1: EXECUTIVE SUMMARY (3/2/9/1) (Annual Report p. 15)

26.1 Page 15 – Comments on IDP as “key strategic plannin g tool”

Councillor Odendaal stated that the IDP was not always aligned to the Budget, and that

during the past 6 years, 99% of the projects on the IDP had not been implemented. He

said it was taken into consideration that the institution faced financial problems, but the

IDP had to be used as a tool that was in line with the Budget.

Councillors Captain and Bisset stated that in their view, the IDP was functioning

effectively. Councillor Odendaal said that it was a concern that projects were not

implemented even after being on the IDP for several years, while other, new projects

received budget preference. Councillor Biddulph stated that all Ward Councillors

submitted plans for their wards to be included on the IDP, but if a ward received a tiny


52

annual budget of, for instance, R700 000, it was considered that there was a problem

with the system.

The Chairperson stated that a major problem was that the Budget was passed, but

without the Ward-based Plan being approved simultaneously, and that had to be

corrected. The Budget/ IDP/ SDBIP and the Ward-based Plan had to be approved at the

same time.


That in order to improve the implementation of ward projects submitted for inclusion on

the IDP, every effort be made to ensure that the Budget/ IDP/ SDBIP and the Ward-

based Plan be approved at the same time by Council.

26.2 Page 16 – Claim that Municipality sets example in conservation of

resources

Councillor Müller stated that the second paragraph had to be revised, as the

Municipality, through its frequent delays in repairing water leaks that were reported, was

not consistently setting an example concerning water conservation.

RESOLVED:

That the reference to the Municipality setting an example to residents regarding the

conservation of resources be deleted from the second paragraph on page 16 of the

Executive Summary in the Annual Report.

26.3 Page 16 – Operational Efficiency Plan

Councillor Odendaal stated that it was misleading to say, in the third paragraph on page

16, that the insitution’s Operational Efficiency Plan had achieved a significant curtailment

regarding expenditure on travel, accommodation, catering and telephone usage. He said

that there was no control system for telephone usage in place to curb abuse of the

telephone service, and that catering at meetings of Council and MPAC was contrary to a

resolution of Council. The Chairperson stated that it had since been agreed that


53

because meetings of Council and MPAC were often very long, it was in order that

catering be provided.

Councillor Captain and Councillor Ntshanyana stated that a report on the Operational

Efficiency Plan should be submitted to MPAC for the Committee to assess it and

recommend how it could be improved.

RESOLVED:

(a) That the third paragraph on page 16 of the Executive Summary in the Annual

Report be reworded to reflect that the Operational Efficiency Plan had not entirely

succeeded in curtailing unnecessary spending on, e.g. telephone usage, and that

there were outstanding issues that still needed to be addressed.

(b) That the Office of the Chief Financial Officer submit a report on the Operational

Efficiency Plan to MPAC, explaining the mechanisms and rules applied in the

Plan to curtail expenditure, in order for MPAC to assess the Plan and make

recommendations on addressing possible gaps and weaknesses.

26.4 Co-operatives providing services for the Munic ipality

In respect of paragraph 4 on page 16 it was stated that the content thereof was

ambiguous and this made it difficult to understand what the City Manager was trying to

say.

At the request of Councillor Captain, reports per (b) below were requested.

RESOLVED:

(a) That paragraph 4 on page 16 be re-written to clarify the exact meaning it intended

to impart to the readers.

(b) That the Office of the Chief Operating Officer submit a detailed report on co-

operatives to MPAC, providing the following breakdown:


54

• Which co-operatives are functioning successfully?

• Which co-operatives are not functioning successfully?

• What kind of assistance is needed by those who do not function successfully?

• How many are employed by the Expanded Public Works Programme?

27. MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENT AL OVERVIEW

(Annual Report p. 17)

27.1 Assistance to the poor (ATTP) (p. 23)

It was NOTED that the Budget and Treasury Directorate had made great strides with the

implementation of the Assistance to the Poor project. In response to a question about a

backlog in handling applications, the Acting Chief Financial Officer said that in recent

months the Revenue Staff had eliminated the backlog, and that currently only the

January and February 2014 applications were outstanding.

27.2 Water and sanitation (Paragraph 1.3.3, p. 25)

The accuracy of the statement that 100% of households had access to potable water

within a 200 m radius was questioned. It was stated that recently a number of

households in Missionvale experienced problems with the water supply and had to fetch

water from a distance of one to two kilometres away.

RESOLVED:

That the information in the table in paragraph 1.3.3 on page 25 of the Annual Report be

qualified by mentioning that not all households had access to potable water within a

200 m radius at all times.

27.3 Refuse removal (Paragraph 1.3.4, p. 25)

With reference to the table in paragraph 1.3.4 on page 25, it was stated that the target

for refuse removal within the urban edge could not be set at 100%, as every household

did not yet have a weekly refuse removal service. A number of communities received a


55

refuse removal service only every second week, and that was currently a major cause of

illegal dumping.

It was agreed that the target should be changed to 99.99% to accommodate that fact. It

was also stated that the intention was to ultimately provide every household with a

weekly refuse removal service, and this had already been extended to Helenvale, but

funding for full implementation was currently not available.

Councillor Gana stated that the Public Health Committee was undertaking various

actions to discourage illegal dumping in terms of training programmes, EPWP projects

and community education as part of the Go Green programme. He added that the Public

Health Committee was also planning to develop one action plan to work against illegal

dumping in conjunction with all other Directorates.

Councillor Tutu urged Ward Councillors to discuss the need to have a clean environment

with communities, and to come up with plans to clean up littered spaces, which could

serve as areas of recreation.

Councillor Captain requested that a detailed report with a breakdown of efforts to

counter illegal dumping and the challenges experienced in that regard, be submitted to

MPAC in writing.

RESOLVED:

That the Acting Executive Director: Public Health, submit a detailed report on processes

currently being undertaken to eradicate illegal dumping, and the challenges experienced

in that regard, to MPAC, setting out the initiatives planned to educate communities in

terms of the Go Green initiative and the proposed action plan involving all Directorates.


56

27.4 Proportion of households with access to basic services (Paragraph 1.3.5,

p. 26)

Councillor Dashwood referred to the graph indicating that 92% of households had

access to basic sanitation, and stated that that percentage had to be lowered to a more

factual and accurate figure. He stated that based on research that was done, the bucket

sanitation system was in use by more households than indicated in the graph.

RESOLVED:

That the table on page 26 of the Annual Report be amended to reflect a lower

percentage of households with access to basic sanitation than the 92% indicated in the

table, in view of the many more sanitation buckets believed to be in use than was

formally reported.

27.5 Electricity revenue (p. 28)

Councillor Dashwood pointed out that in the very brief overview in the report on

electricity revenue, no figure was mentioned regarding the theft of electricity, which had

a significant impact on income. He said that that information had to be included in the

report, and that the amount that was being lost had to be stated, as well as the potential

income that could have been realised if there had been effective controls against theft in

place.

RESOLVED:

That the report on electricity revenue on page 28 of the Annual Report be expanded to

include factual information about the negative impact of the theft of electricity on income,

and also state the estimated annual amount being lost, and the potential annual income

which could have been gained if effective controls were in place.


57

27.6 Rental of facilities and equipment (p. 28)

Councillor Dashwood stated that to date the Municipality had lost an enormous amount

of income because it was not charging market related rentals. There were no

agreements in place, and the rental being paid was historic and had not changed in a

number of years. It was stated that these matters were not adequately addressed in the

report.

NOTED

27.7 Fines (p. 29)

Councillor Dashwood pointed out that every year there was a gross under-achievement

in respect of the collection of fines. He said that it was known that there was a resource

problem, but the report before the Committee was not comprehensive. It was believed

that a plan had been proposed to address with the matter, which was said to have been

submitted to the City Manager.

Councillor Biddulph referred to the current situation with the contracted summons

service, which had a very material impact on how much fines revenue was collected.

The Acting Executive Director: Safety and Security stated that the matter was currently

sub judice.

The Acting Executive Director: Safety and Security pointed out that there seemed to be

a misprint in the report on page 29 where it was stated that “the revenue collected for

the 2012/13 financial year (R28.70 million) was even lower than the amount of

R23.41 million collected in the 2009/10 financial year” – as R28.70 million is more than

R23.41 million.

RESOLVED:

That the apparent misprint on page 29 of the Annual Report, as described in the note

above, be corrected.


58

27.8 Public Transport Infrastructure Grant (p. 29); Expanded Public Works

Programme; Infrastructure Skills Development Grant; EU Funding (p. 30)

It was commented that the unspent amounts in respect of the above-mentioned grants

was a poor reflection on Council, and that the problem would probably only be

addressed once permanent senior managers had been appointed and officials held

accountable.

NOTED

27.9 Consumer Debtors (p. 32) and Total outstanding Service Debtors (p.36)

RESOLVED:

That the following be recorded as one of MPAC’s grave concerns, i.e. the risk to the

financial sustainability of the Municipality posed by the under-achievement in respect of

debt collection, and its appeal for urgent attention to be given to addressing the matter.

27.10 Employee related funds (p. 31)


That urgent attention be given to the speedy filling of vacant staff positions in the

revenue-generating Directorates of the Municipality, e.g. Safety and Security and Budget

and Treasury, and that same be prioritised.

FURTHER RESOLVED:

That a report on the implementation of the TASK be submitted to MPAC for information

by the Executive Director : Corporate Services.

(Mr Ndoyana left the meeting and Mr Javu arrived at 11:55.)


59

(The Acting Chief Operating Officer, Dr M Chabula-Nxiweni, entered the meeting at

12:00.)

27.11 Repairs and maintenance backlog (p. 37)


That the backlog in repairing and maintaining infrastructure because of financial

constraints be recorded as one of MPAC’s matters of concern, and that alternative

strategies or funding mechanisms be developed to ensure an adequate level of repairs

and maintenance.

27.12 Reports to be submitted to MPAC arising from Chapter 1 of the Annual

Report

RESOLVED:

That written reports on the following matters be submitted to MPAC:

(a) A report on the various types of traffic fines, and the value of each fine in rands,

issued by the Safety and Security Directorate, as well as the number of fines

issued in the 2012/13 financial year.

(b) Details of all the applicants who benefit from the Assistance to the Poor (ATTP)

Scheme that were approved in the 2012/13 financial year, and all the applications

that were not approved.

(c) A written report on the reasons for the under-spending reported in the Annual

Report on the following grants:

(i) Public Transport Infrastructure Grant (R46,11 m not spent)

(ii) Expanded Public Works Programme (R7 m not spent)

(iii) Infrastructure Skills Development Grant (R3.5 m not spent)

(iv) EU Funding (R7.39 m not spent)


60

28. CHAPTER 2: GOVERNANCE (Annual Report p. 43)

28.1 Council – Meetings held and statistics request ed re other governance

structures (pp. 44 to 48)

It was requested that the word “fully” be removed from the sentence starting: “The

Council is fully functional…” so that the sentence starts as follows: “The Council is

functional …”. It was also pointed out that the number of Council meetings held was not

accurate.

A breakdown of details were also requested to be provided in the Annual Report

regarding meetings held in the year under review by the Mayoral Committee, the

Whippery and the IGR Forum.

In respect of paragraph 2.1.4 MPAC it was stated that the Committee’s functional

challenges had to be highlighted in the report, e.g. Acting Municipal Managers, absence

of Executive Directors at meetings and outstanding reports.

RESOLVED:

(a) That the paragraph on page 44 concerning the number of meetings held by

Council in the year under review be corrected to reflect that eight (8) ordinary

meetings and six (6) special meetings were held.

(b) That the word “fully” be removed from the sentence starting: “The Council is fully

functional…” so that the sentence starts as follows: “The Council is functional…”

(c) That statistics be included in the report on the number of meetings held in the

year under review by the Mayoral Committee and the Whippery.

(d) That statistics be provided of the number of meetings held by the IGR Forum, as

well as a concise summary of the work done in the year under review by the

Forum.


61

(e) That paragraph 2.1.4 on page 47 be amended to include MPAC’s functional

challenges, i.e. Acting Municipal Managers, absence of Executive Directors at

meetings and non submission of outstanding reports.

28.2 Public meetings (Paragraph 2.4, p. 59)

RESOLVED:

That the statement in the paragraph under the heading “Public meetings” on page 59 of

the Annual Report that “the Municipality has a broad spectrum of consultative and

participatory public programmes in place to ensure community participation in

municipal planning and decision-making processes” should be qualified to include the

fact that the turn-out at such meetings are poor, but that ways will be explored to

improve it.

28.3 Public accountability and participation – Conc ern re structures listed (pp.

53 and 54)

Concern was expressed at the fact that on page 53 of the Annual Report it was indicated

that the various structures/ forums were functioning well, while their offices in the

Municipality were not functional.

RESOLVED:

That the introduction to the “Overview of public accountability and participation” on page

53 include a reference to the fact that the various offices in the Municipality which were

created to manage the structures/ forums listed on pages 53 and 54 were currently not

functional.


62

28.4 Ward Committees (p. 60)

RESOLVED:

That a detailed written report be submitted to MPAC by the Office of the Speaker on

progress made in the new financial year (2013/14) with the re-introduction of functioning

Ward Committees.

28.5 Overview of corporate governance (p. 62)

RESOLVED:

That the first paragraph in the under the heading “Overview of corporate governance” on

page 62, in which reference is made to the Internal Audit and Risk Assurance Division,

be qualified by adding that Internal Audit’s work was hampered by political interference.

28.6 Supply Chain Management (Paragraph 2.8, p. 65)

It was commented that towards the end of 2013, progress was made in addressing legal

challenges when the new Supply Chain Management Policy was implemented, but that

it should be stated in the 2012/13 Annual Report that non-compliance with the MFMA in

the Supply Chain Management Division was the reason for the qualified audit opinion in

2012/13. It was also a concern that there was no functioning system in place for officials

to declare their business interests on an annual basis.

RESOLVED:

That the following statements be included in Paragraph 2.8 under the heading “Supply

Chain Management” on page 65 of the Annual Report:

(i) that non-compliance with the MFMA in the Supply Chain Management

Division was the reason for the qualified audit opinion in 2012/13; and


63

(ii) that it was of concern to MPAC that there was no functioning system in

place for officials to declare their business interests on an annual basis.

(Note: See also MPAC Min. No. 21.2.13/2014 dated 4 F ebruary 2014 re (ii) above.)

28.7 Public satisfaction with municipal services – War Room on Service Delivery

(Paragraph 2.11, p. 67)

The following observations were made about the War Room:

The view was expressed that the percentage of people surveyed who indicated that they

believed that the War Room’s performance was satisfactory, was still low, and that more

work needed to be done in that regard.

It was stated that the communication between those taking the details of complaints that

were reported, and those responsible for attending to the complaints, was not

satisfactory, as the complainants were not always promptly advised that their complaints

had been addressed.

The question was also raised whether the persons who took part in the survey were a

representative and proportionate sample of all the Nelson Mandela Bay communities.

NOTED

29. CHAPTER 3 : SERVICE DELIVERY PERFORMANCE (p. 68 )

29.1 Water provision – Blue Drop status (p. 71)

It was stated and

RESOLVED:

That it be registered as one of MPAC’s concerns that only two, and not more of the

seven municipal water treatment works had been awarded Blue Drop status,


64

29.2 Bucket eradication (p. 79)

Councillor Dashwood stated that he was convinced that there were more sanitation

buckets in use than the 23 000 mentioned in the report on page 79 of the Annual Report.

He asked that this issue be further investigated.

RESOLVED:

That the number of 23 000 sanitation buckets in use, as referred to on page 79 of the

Annual Report be investigated in the interest of greater accuracy, and the statement be

corrected if found to be incorrect.

29.3 Nooitgedagt Low Level Scheme (p. 78)

It was reported that the Infrastructure and Engineering Directorate’s application for

additional funding for the Nooitgedagt Low Level Scheme had not been granted in 2013,

but that a new application was made in 2014.

In response to a question about water losses, and the need for a strategy in that regard,

it was pointed out that reports in that regard were submitted to the Infrastructure and

Engineering and Energy Committee, and that a workshop on the matter would be

presented by the Infrastructure and Engineering Directorate in the week of 17 to 21

February 2014. (See also MPAC Min. No. 21.2.9/2014 dated 4 Februar y 2014.)

NOTED

29.4 Local Economic Development : Promoting investm ent, tourism and

economic growth (pp. 138 - 140)

Councillor Dashwood referred to the second and the last paragraphs on page 138 and

the second paragraph on page 139 of the Annual Report, and stated that an official

representative of local high-end electricity users had indicated to him that the statements

in the report that the Municipality was “committed” to transforming Nelson Mandela Bay


65

into a “globally competitive and preferred destination for investors and tourists” lacked

credibility.

Councillor Dashwood stated that it was not acceptable to “tell only the good things” in

the Annual Report. He agreed that new jobs had been created in some sectors, but said

that the report should then also be honest and mention the fact that the high-end

electricity users had been forced to shed 1 000 jobs during the same period.

RESOLVED:

That the report on pages 138 to 140 which sets out the positive side of local economic

development in Nelson Mandela Bay be balanced by acknowledging also the job losses

that occurred and the policies that were experienced as disadvantaging by local

commerce and industry in the year under review.

29.5 Traffic and Licensing Services (Paragraph 3.20 .2, p. 191)

It was stated that the statement in the first paragraph on page 191 of the Annual Report

about the image of the Traffic and Licensing Services was not fully explanatory and “did

not give the total picture”.

NOTED

29.6 Service statistics for Traffic and Licensing ( p. 195)

RESOLVED:

That in respect of the last row of the table of Traffic and Licensing Services data on page

195 of the Annual Report, brief notes be provided stating where (i.e. in which areas)

were the 75 traffic officers on duty on an average day during the 2012/13 financial year.


66

29.7 Comment on performance of Traffic and Licensin g (p. 198)

In respect of the statement on page 198 of the Annual Report, that the Municipality was

severely affected by a shortage of Traffic and Licensing law enforcement staff, it was

confirmed in response to a question that the vacancies concerned were unfunded

vacancies. The meeting was directed to p. 10 of the Performance Scorecard which

further explained the matter.

NOTED

29.8 Comment on the performance of the Executive an d Council (Second

paragraph, p. 218)

It was again pointed out that the reference to 17 Council meetings held in the review

period needed to be corrected to state that 14 meetings were held. (See Min. No.

28.1(a)/2014 above).

NOTED

29.9 Financial services (Paragraph 3.25, p. 218)

It was pointed out that the statement, in the first paragraph under the heading

“Introduction to Financial Services” on page 218 of the Annual Report, that the Budget

Performance Monitoring Task Team met “every second month” was incorrect and should

be corrected.

RESOLVED:

That the statement, in the first paragraph under the heading “Introduction to Financial

Services” on page 218 of the Annual Report, that the Budget Performance Monitoring

Task Team met “every second month” was incorrect and should be corrected.


67

29.10 Legal Services and Risk Management (Paragraph 3.28, p.235)

It was emphasised that it was of great importance that the vacant position of Director:

Legal Services be filled appointing a suitable incumbent as soon as possible. It was

stated that an experienced legal practitioner was needed to assist the well qualified, but

inexperienced staff in making Council’s Legal Services Unit fully functional.


That the vacancy of the position of Director: Legal Services be filled as a matter of

urgency by the appointment of a legal practitioner with relevant experience of working in

the legal fraternity for several years.

29.10 Annual Performance Scorecard Report for 2012/ 13 financial year (p. 239)

It was NOTED that the timeframe for achievement of the targets that were not met in the

2012/13 financial year was 30 June 2014.

30. CHAPTER 4 : ORGANISATIONAL DEVELOPMENT PERFORMA NCE (p. 279)

30.1 Employee totals, turnover and vacancies (parag raph 4.1, p. 279)

It was stated that it was a concern that the process to fill vacancies sometimes took up

to nine to ten months to finalise, not only in respect of critical or senior appointments, but

also in the case of appointments at lower levels.

It was confirmed that the finalising of appointments within three months had now been

established as a key performance indicator.

NOTED


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30.2 Disclosures of financial interests (p. 296)

It was stated that a more effective system of disclosure of business interests by

employees was required than the system referred to on page 296 or the Annual Report.

NOTED

Note: This matter was also considered at the MPAC meeting on the Annual Report held

on 4 February 2014, and the proceedings are minuted in Min. No. 21.2.13/2014.

31. CHAPTER 5 : FINANCIAL PERFORMANCE (p. 297)

31.1 Conclusion : Operational Efficiency Plan and N MBM’s financial position

(p. 301)

There was a view that it was not so much the Operational Efficiency Plan that had

helped to improve the NMBM’s financial position, but rather the fact that there had been

under-expenditure on budget items. However, it was said that MPAC would not request

that the statement on p. 301 be amended.

NOTED

31.2 Cost coverage reporting (p. 321)

Councillor Dashwood pointed out that in reporting on cost coverage, it had to be made

quite clear whether the cost coverage had been effected with unconditional grants, or

without unconditional grants.

RESOLVED:

That in the report on cost coverage on page 321 of the Annual Report, it be clearly

indicated whether such cost coverage was effected with unconditional grants, or without

unconditional grants.


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32. OTHER

32.1 Revenue management (Paragraph 29, p. 350)

Councillor Dashwood referred to paragraph 29, under “Revenue Management” in the

Auditor-General Report on the Financial Statements : Year 0” which states: “An effective

system of internal control for debtors and revenue was not in place, as required by

section 64(2)(f) of the MFMA. He stated that in his opinion there were “one or two” other

reasons as well, which should have been included in the report.

NOTED

32.2 Appendix A – Councillors, committee allocation and Council attendance

(pp. 362 to 366)

RESOLVED:

That corrections be made in respect of all Councillors, except the Speaker of Council,

the Chief Whip and the Mayoral Committee, who are erroneously indicated in the

Appendix as Full Time (FT) Councillors, and who must be indicated as Part Time (PT)

Councillors.


COUNCILLOR V J TUTU



70







Councillor T Gana






ALSO PRESENT: Acting Chief Operating Officer (Dr M Chabula-Nxiweni)



(Mr W Shaidi)


Acting Executive Director : Human Settlements (Mr L Petuna)




Director : Water and Sanitation (Mr B Martin)

Director: Human Resources Management (Mr C Jamda)

Director: MURP (Mr N Dunjana)

Director : Corporate Services (Mr N Mqulwana)

Assistant Director: Human Settlements (Mr Z Nkayitshana)

Assistant Director : Corporate Services (Mr J Sigonyela)


Acting Assistant Director : (Office of the COO (Ms Z Mhuluhulu)

Finance Manager : IPTS (M P Skade)


71





The Chairperson stated that the City Manager had informed him the previous night that

he would not be able to be at the MPAC meeting, as he had to attend interviews for the

appointment of a Chief Operating Officer on this day. The Acting Chief Operating Officer

would stand in for him, and would join the meeting as soon as she was released from

another Council related meeting.

NOTED

APOLOGIES

Apologies were received from Councillor K G Ntshanyana, who had to attend to an

emergency situation, and from Councillor J N Mapu, who had earlier advised the

Secretariat that she was out of town and was unsure whether she would be back in time

for the meeting.

Apologies were also submitted for the Executive Director : Corporate Services, who was

attending interviews for the position of Chief Operating Officer and was represented at

the meeting by the Director : Human Resources Management, Mr Jamda, and for the

Acting Executive Director : Economic Development, Ms L Mxenge, who had to attend a

meeting with the MEC for Agriculture.

NOTED AND RESOLVED:

That Councillors J N Mapu and K G Ntshanyana be granted leave from this meeting of

the Committee.


72


CODE OF CONDUCT

No applications were received.



2000)

Councillor H Müller stated that he was a consultant at the legal practice that had

assisted in respect of some of the legal matters referred to on page 558 of the Annual

Report, and would recuse himself if those matters were discussed at the meeting.

NOTED



REPORT BY EXECUTIVE DIRECTOR: CORPORATE SERVICES

33. 2012/13 FINANCIAL YEAR : UNAUTHORISED EXPENDITU RE (5/1/2) (5/1/3/R)

(Item 2, page 4 – MPAC agenda dated 13 February)

(This item was not considered at the previous MPAC meeting held on 13 February

2014.)

The Acting Chief Financial Officer stated in response to a query by Councillor Odendaal

about the procedure in dealing with the unauthorised expenditure set out in this item,

that a Section 32 Report in terms of the MFMA would be drafted in order to have the

expenditure condoned.


73

RESOLVED:

That in respect of the unauthorised expenditure incurred during the 2012/13 financial

year and which was authorised by Council on 24 January 2014, the Acting Chief

Financial Officer also draft a Section 32 Report in terms of the MFMA in order for the

expenditure to be condoned.

34. 2012/13 ANNUAL REPORT

34.1 Appendix N : Capital Programme by project : Ye ar 0 (p. 454)

Councillor Odendaal expressed concern in respect of big capital projects that were not

completed, citing the example of the Kelvin Jones Waste Water Treatment Works

Upgrade.

The meeting requested clarity about the way in which the Capital Programme was set

out in the document. The Acting Chief Financial Officer stated that it was a fixed

template received from National Treasury on which the Municipality was required to

enter information.

An explanation of the mathematical formula used was given by the Acting Executive

Director: Infrastructure and Engineering (Mr Shaidi), using the example of the item on

the Cable Replacement 6.6kV Capital Project (p. 458, 5th row from bottom). He stated in

response to a question how the 100% had been arrived at in the last two columns, with

“3” (R3 million) in the Actual column, but nothing under Original Budget nor Adjustments

Budget, that the following formula was applied:

Actual Budget minus Original Budget = x

x divided by x =1

1 x 100 = 100%

Therefore 3 (actual) – 0 = 3

3 ÷ 3 = 1

1 x 100 = 100%


74

Councillor Dashwood requested that the explanation of the mathematical formula used

to calculate the percentages be given in a brief paragraph to be added at the end of

Appendix “N” for the information of readers who found the tables user-unfriendly.

NOTED AND RESOLVED:

That the explanation given the Acting Executive Director: Infrastructure and Engineering

of how the 100% had been calculated in the example in the preamble above, be set out

in a brief paragraph at the end of Appendix “N” on page 465 of the Annual Report.

34.2 Provision for Performance Bonuses (p. 505)

There was a query about the statement in the report that: “If on assessment of the

respective S57 employees it is decided that a bonus will be paid out, the S57 employee

is entitled to receive this bonus, irrespective of whether they are still in the service of the

entity”.

The Acting Chief Financial Officer explained that the Performance Bonus was based on

the year under review, and that in respect of an employee who was in Council’s service

for that year, a performance assessment was done for that employee, and he/she would

be entitled to a bonus to be paid out retrospectively for the year that he/she was in the

service of the Municipality.

NOTED

35. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE

2013

35.1 Remuneration of Councillors : In-kind benefits : Sponsored vehicle and 3G

allowances (Note 27, p. 544)

Councillor Odendaal referred to Note 27 to the financial statements and put the following

questions about the vehicle used by the Executive Mayor:


75

Does the Deputy Executive Mayor also use the vehicle – the same one used by the

Executive Mayor? If so, should it not have been disclosed in the financial statements?

And is it in line with Council’s Policy that the Deputy Executive Mayor also uses the

vehicle?

Councillor Odendaal also referred to the 3G cards used by Councillors, and said since

about eighteen months ago until three to four months ago, Councillors received an

additional R300 to their salaries for 3G cards, while their 3G cards were also being paid

for by Council. He asked whether it should not have been disclosed that Councillors had

been paid more than they were entitled to, and, how this matter would be resolved.

Councillor Captain asked whether the Municipality also hired vehicles for use by the

Executive Mayor and his Deputy, and if so, what the implications were in view of the fact

that a vehicle was also being sponsored by VWSA.

The Director: Human Resources Management Services (Mr C Jamda) who represented

the Executive Director: Corporate Services at the meeting, undertook to supply the

requested information at a later stage.

RESOLVED:

That the Executive Director: Corporate Services submit a report in response to the

following questions arising from Note no. 27 to the Financial Statements (2012/13

Annual Report, p. 544) to MPAC:

(i) Does the Deputy Executive Mayor use the same official vehicle as the one used

by the Executive Mayor?

(ii) If so, should it not have been disclosed in the financial statements?

(iii) Is it in line with Council’s Policy that the Deputy Executive Mayor also uses the

vehicle?


76

(iv) Does the Municipality also hire vehicles for the use of the Executive Mayor and

the Deputy Executive Mayor, apart from the Council-owned vehicle and the

vehicle sponsored by VWSA?

(v) Regarding the overpayment of R300 a month made to Councillors for 3G cards,

should that expenditure not have been disclosed in the financial statements?

(vi) How will the situation re the overpayment referred to in (v) above be resolved?

35.2 Councillors’ arrear consumer accounts outstand ing for more than 90 days

(Note 36, p. 547)

It was pointed out that in the list of names of Councillors on page 547 of Annual Report,

it was unknown who Councillor E Williams was, as no Councillor by that name could be

recalled.

In response to a question as to when the Municipality started deducting the monies due

from Councillors’ salaries, the Director: Corporate Services (Mr N Mqulwana) stated that

Councillors were not permitted to be in arrears for longer than 90 days. He said that

there used to be a system where Councillors with arrear accounts would be summoned

by the Speaker to discuss payment arrangements, and that that system should probably

be brought back.

Note: It was requested and agreed that the small print used on pp. 527 to 598 was very

difficult to read, and that in future, a larger print should be used.

NOTED AND RESOLVED:

That the matter of the unknown E Williams, listed as a Councillor on page 547 of the

Annual Report, be investigated and resolved by the Acting Chief Financial Officer and

reported to MPAC for information.


77

35.3 Contingent liabilities (Note 45(a), p. 559)

The Committee expressed concern at the large number of claims arising from

damages/injuries due to potholes, and whether these claims were investigated and/or

challenged before being settled. Another challenge was the risk of injury, and resultant

claims, caused by missing manhole covers and uneven sidewalks.

Councillor Harning raised the following points about what was being done by the

Municipality and what more could be done to reduce damage and injury and thereby

also the number of claims against the institution:

(i) Theft of manhole covers: Intensive efforts were being made by the Safety and

Security Directorate to find out who the buyers of stolen manhole covers were.

(ii) By-laws re dogs: The By-laws for the control of dogs should be strictly enforced

to prevent dogs being walked without a leash on the beach and other public

spaces.

(iii) Potholes: The repairing of the potholes in the Northern Areas and the townships,

where there are many huge potholes that could cause serious damage, should

be prioritised.

(iv) Media campaign needed: An intensive media campaign must be undertaken to

make the public aware of the 0800 20 50 50 telephone number for reporting of

stray dogs, potholes and burst water pipes, etc.

The Acting Executive Director : Infrastructure and Engineering (Mr W Shaidi) agreed that

the issue of potholes, particularly in the townships, was a serious problem. He said that

the Directorate had been on track with efforts to address the problem, but that the

shortage of bitumen, which was since resolved, had caused a setback. He added that

budgetary constraints and the vacancies in the Infrastructure and Engineering

Directorate that were not being filled, while the infrastructure on the ground expanded

and demands grew, were major challenges.


78

He reported on the following actions to manage the challenges:

• The public should keep using the 0800 20 50 50 telephone number to report

complaints. It assisted the Directorate in tracking problems and monitoring its own

turnaround time.

• No more budget cuts should be made in respect of the vacancies in the

Infrastructure and Engineering Directorate, which needed the staff capacity to

deal with the growing demands because of the expanding infrastructure in the

NMBM area.

• With the co-operation of Directorates and senior managers, a system was

developed to facilitate the supply of stock items from the Stores in the Supply

Chain Management Sub-directorate.

The Acting Assistant Director: Legal Services (Mr M Ganyaza), in response to an earlier

question, stated that claims instituted against the Municipality are directed to the

relevant Directorate for input. The claim is then assessed and either challenged or

settled, depending on the merits of the case.

Councillor Odendaal proposed the reinstatement of the Municipality’s Joint Operations

Centre (JOC). He said that JOC had earlier been a very effective initiative, until most of

the officials attached to it were removed and its capacity was seriously weakened.

However, with the support of the various Directorates, and restored to its former

capacity, the JOC would assist hugely in improving service delivery, particularly in

respect of dealing with potholes, missing manhole covers, burst pipes and similar

infrastructure matters. He moved formally that it be a recommendation of MPAC in its

Oversight Report that the Joint Operations Centre be reinstated.

With reference to Councillor Harning’s earlier proposal that an intensive public

communications campaign be initiated, Councillor Odendaal said that such a campaign

would be very useful if JOC was reinstated.

Councillor Biddulph supported the proposal for a reinstated JOC, that was adequately

staffed and run efficiently.


79


That the Municipality restore its Joint Operations Centre (JOC) to its former capacity by

providing it with adequate staff and efficient management to assist in improving service

delivery, particularly in dealing with complaints from the public about potholes, missing

manhole covers, burst pipes and similar infrastructural matters.

35.4 Audit Committee Report for Year ended 30 June 2013 (p. 609

Councillor Dashwood pointed to the reference made by the Chairperson of the Audit

Committee in the report on page 609 of the Annual Report to, inter alia, ”persistent

interference by politicians in the administration of the municipality” and the need to

attract investment in order to stimulate job creation.

In respect of job creation, Councillor Dashwood stated that jobs in Nelson Mandela Bay

were lost due to the high running costs of companies in some sectors. He repeated his

earlier statement that it was announced in the Annual Report that 500 new jobs were

created in the year under review, but that nothing was said about the approximately 1

000 jobs that were lost because of high running costs. He emphasised that these points

were critical, and required urgent attention, particularly the high electricity costs.

Councillor Dashwood stated that there were high-end electricity users who were still

waiting for a written response from the Municipality on closure to the question of whether

or not the institution would grant their companies an electricity rebate or similar deal. He

made an appeal to the Acting Executive Director: Electricity and Energy to react

positively and address the critical issue of the high-end electricity users without delay.

Councillor Harning referred to the statement in the report about political interference,

and said that it was the task of the ruling party to implement its policies. Councillor

Mafaya noted that there was a thin line between interference and intervention.

Councillor Captain proposed that a meeting between the Audit Committee and the

Executive Mayor be arranged for a discussion on issues raised, including what was

regarded as political interference by the Audit Committee.


80

Councillor Odendaal said that the ruling party obviously had to create and drive policy,

but that there was a distinction between taking decisions in Council and implementing

policy on the one hand, and political leaders giving instructions from outside of Council

on the other hand. The latter was not allowed and was interference.

He proposed that instead of referring the Audit Committee’s report to the Executive

Mayor, MPAC note it and have an informal discussion with the Chairperson of the Audit

Committee, and moreover strive not to repeat the issues that were raised as challenges

in the current report of the Audit Committee.

Councillor Captain proposed that MPAC accept the proposal made by Councillor

Odendaal. It was also agreed that a Risk Management Committee should be established

as a matter of urgency, as currently the Audit Committee was acting as a Risk

Management Committee, and it was considered that the two should be separated.

In response to a proposal that maladministration in the Supply Chain Management Sub-

directorate be investigated by Internal Audit, the Director: Internal Audit stated that over

the past three years, her Sub-directorate had conducted in-depth audits within the

Supply Chain Management Sub-directorate and that the same deficiencies identified by

the Auditor-General had been reported to management on a regular basis.


(a) That the Acting Executive Director : Electricity and Energy address without delay

a definitive written response to the business sector in Nelson Mandela Bay

constituting the high-end electricity users on the issue of whether or not an

electricity rebate or similar deal would be granted to their companies.

(b) That a Risk Management Committee be established to function separately from

the Audit Committee.


81

FURTHER RESOLVED:

(c) That MPAC note the issues raised as challenges facing the institution as set out

in the report by the Chairperson of the Audit Committee, and liaise informally with

the said Chairperson on those matters.

36. REPORT ON MUNICIPAL ENTITY : MANDELA BAY DEVELO PMENT

AGENCY

The Committee commended the good work done by the Mandela Bay Development

Agency, particularly in respect of urban renewal projects in Helenvale and the

townships.

Councillor Harning suggested that the membership of the MBDA Board be reviewed to

ensure that it was more demographically representative, but it was agreed that the

Board was an independent body of experts who were operating highly successfully.

Councillor Dashwood stated that any changes should be made “in the spirit of having the

correctly qualified person for the job”.

NOTED

37. OTHER

37.1 KPA and KPE report to be considered in depth

The Acting Chief Operating Officer/ Acting City Manager (Dr Chabula-Nxiweni)

proposed, and it was

RESOLVED:

That in the next meeting of the Committee on the Annual Report, the section on the Key

Performance Areas and Key Performance Elements be considered in depth in order to

identify administrative challenges and formulate recommendations in respect thereof to

Council.


82

37.2 Reports requested by MPAC

In response to a query about the submission of reports requested by MPAC in the

course of its meetings on the Annual Report, the Chairperson stated that at this stage

the task of MPAC was to assess the Annual Report in order to provide input for the

Oversight Report.

The reports requested would be considered by MPAC when it resumed its ordinary

meetings.

NOTED

37.3 Next meeting

The Chairperson stated that at the next meeting on 25 February 2014, Chapter 3 of the

Annual Report, the KPA and KPE Report and the report on Outstanding Matters from

the 2011/12 Oversight Report (Circular No. 10/2014 dated 31 January 2014) would be

considered.

NOTED


COUNCILLOR V J TUTU



83






Councillor T Gana

Councillor M Harning


Councillor J N Mapu (10:10)





ALSO PRESENT: Councillor A C G Mfunda (10:50)

City Manager (Mr M Mbambisa)

Acting Chief Operating Officer (Dr M Chabula-Nxiweni)





(Mr W Shaidi)


Acting Executive Director: Public Health (Mr J Mkosana)


(Ms C Williams)

Acting Executive Director : Special Programmes Directorate

(Mr N Dunjana)

Acting Executive Director: Safety and Security (Mr M H Totoyi)

Director: Corporate Services (Mr N Mqulwana)


84

Strategic Manager: Corporate Services (Ms N Makapela)




Administrative Support Officer: Infrastructure and Engineering

(Mr Z Qenqwa)

Acting Assistant Director (Office of the COO) (Ms Z Mhuluhulu)


Representative of the Office of the COO (Ms M Nel)




CODE OF CONDUCT

An application for leave of absence was submitted by Councillor D Biddulph who had to

attend to Electoral College duties.

RESOLVED:

That leave of absence from this meeting of the Committee be granted to Councillor

D Biddulph.



2000)





85


38. ANNUAL REPORT 2012/13 : ANNUAL PERFORMANCE SCOR ECARD : KEY

PERFORMANCE AREAS (KPAs) AND KEY PERFORMANCE ELEMEN TS

(KPEs)

The KPA and KPE Scorecard spreadsheet, of which colour copies were distributed at

the meeting, was discussed at this stage.

38.1 Page 3 of spreadsheet, point 1.1:

Number of households relocated from stressed infor mal settlements and

other servitudes to Greenfield development areas : Target not achieved

In response to a question whether the construction of the infrastructure that had been

delayed, had been completed by August 2013, as stated in the notes in point 1.1, p. 3,

the Acting Executive Director: Infrastructure and Engineering confirmed that the

provision of services in Motherwell NU 29 and Wells Estate had since been completed,

and that work had started in NU 30.

NOTED


% of households within urban edge provided with ac cess to basic potable

water supply within a 200 m radius: Query re achiev ement of 100% target

The Acting Executive Director: Infrastructure and Engineering explained that potable

water was provided to all households within a 200 m radius, but when families or groups

settled outside that radius but within the municipal area, the Directorate made

arrangements to provide potable water for their use.

NOTED


86


% reduction in water losses in line with the Inter national Water Association

(IWA) Audit Standards (variance between the total s ystem input and

authorised consumption) : Target not achieved

It was stated that some of the “leaks” reported were actually ponding caused by rising

ground water, and the Acting Executive Director: Infrastructure and Engineering

undertook to instruct his Water Division to reassess the situation at those sites.


That the following steps be implemented to address the persistent water losses

experienced in the Municipal area:

(i) filling critical artisan vacancies (Plumbers) in the Infrastructure and Engineering

Directorate;

(ii) employing previously trained plumbers;

(iii) monitoring the 0800 20 50 50 number and ensuring that calls from townships

were handled on an equal footing with calls from other residential areas;

(iv) ensuring effective communication between the depot and the 0800 20 50 50 call

centre so that callers were promptly advised of repairs carried out;

(v) urging all Councillors to be more active in reporting water leaks, and following up

reported cases until problems were fixed;

(vi) using the Intergovernmental Relations Forum (IGF) to interact with the Provincial

Department of Education about the repairing of water leaks at schools; and

(vii) hiring an independent service provider to assess all aspects of the municipal

water service system, including the billing system, and the fact that the age of the


87

infrastructure contributed to frequent leaks, with a view to a sustainable solution

to this challenge being developed.


Number of new erven connected to electricity (stat e subsidised and

informal houses) : Target not achieved

It was pointed out that because of the shortfall in the budget allocation to the Electricity

and Energy Directorate in the 2012/13 year, the target for new electricity connections to

all state subsidised and informal houses requiring the service was not reached, and that

this could also have contributed to losses suffered through illegal connections.


That concerted efforts be made to ensure that the Electricity and Energy Directorate

receive its full budget allocation in future financial years to enable it to provide new state

subsidised and informal houses with proper electricity connections, thereby also

eliminating the need for illegal connections.


Number of households within the urban edge changed from a fortnightly to

a weekly waste collection service : Target not achi eved

It was confirmed that of the five refuse compactors that could not be delivered in the

2012/13 financial year due to a shortage in market supply, two were received in

February 2014, and the other three would be delivered in April and June 2014.

Community-based projects would also be finalised in the coming weeks to assist in

extending the weekly waste removal service.

NOTED


88


Average traffic fines issued by a Traffic Officer per day : Target not

achieved

It was commented that apart from not issuing enough traffic fines, the revenue from the

fines that were issued was also not collected effectively, because the summons system

was not in place, which made persons ignore the fines issued to them.

NOTED

39. PROGRESS REPORT ON MATTERS EMANATING FROM THE 2 011/12

OVERSIGHT REPORT (CIRCULAR NO. 10/2014)

It was pointed out that due to the very late delivery of the agenda for the present

meeting, the above-mentioned report could not be perused properly by most members.

RESOLVED:

(i) That in order to allow members more time to study the abovementioned report, it

be considered at the next meeting of the Committee scheduled for 6 March 2014.

(ii) That the Office of the Chief Operating Officer submit a Draft Oversight Report to

at the Committee at its meeting on 6 March 2014.

At this stage Councillor Odendaal stated that in his opinion there were still a number of

items in the KPA Report that required discussion and recommendations by MPAC. He

said that it was unfortunate that the debate on the KPA Report had been curtailed after

Councillor Captain had stated that what he was saying were repetitions of what had

been stated in previous meetings. Councillor Odendaal stated that documents before the

Committee had to be thoroughly interrogated and discussed, even if there were

occasional repetitions. Councillor Captain indicated that the meeting was not in need of

repetitions to understand matters, at which point Councillor Odendaal and the other DA

Councillors left the meeting.


89


COUNCILLOR V J TUTU



90

(Meeting held on 6 March 2014)





Councillor T Gana






ALSO PRESENT: Speaker of Council (Councillor M E Hermans) (11:20)

Councillor A C G Mfunda (11:35)

Councillor B C Wright

Acting City Manager (Dr M Chabula-Nxiweni)

Executive Director: Corporate Services (Mr M Ndoyana)




(Ms C Williams)

Acting Executive Director: Safety and Security (Mr A de Ridder)

Director: Water and Sanitation (Mr B J Martin)


Acting Director: Waste Management (Public Health) (Ms A Dyakala)

Acting Director: Policy, Strategy and Research (Office of the COO)

(Ms S Claasen)

Assistant Director : Corporate Services (Mr J Sigonyela)


Administrative Manager: EDTA (Mr E Noack)



91


Administrative Support Officer (Office of the COO) (Ms M Nel)





CODE OF CONDUCT

No applications were received.

APOLOGIES

Apologies were submitted on behalf of Councillor J N Mapu, who was out of town on

business, and Councillor N R Captain, who was in Gothenburg, Sweden, on Council

business.

Apologies were also reported in respect of the City Manager and the Acting Executive

Director: Electricity and Energy (Mr P Neilson), both of whom were in Gothenburg,

Sweden, on Council business.

The Acting Executive Director: Infrastructure and Engineering (Mr W Shaidi) was absent

because of an urgent doctor’s appointment, the Acting Executive Director: Public Health

(Mr A Tolom) had to attend to a family responsibility matter, and the Acting Executive

Director: Safety and Security (Mr S Brown) was engaged in preparations to leave for the

2014 FIFA World Cup in Brazil.

RESOLVED:

That leave of absence from this meeting of the Committee be granted to Councillors

N R Captain and J N Mapu.


92



2000)




CONFIRMATION OF MINUTES – MEETING HELD ON 13 FEBRUA RY 2014

It was pointed that the reference to “high-end electricity” users in Min. No. 29.4 and 35.4

had to be replaced by “high energy” users.

RESOLVED:

That subject to the amendment set out in the preamble above, the minutes of

proceedings of the Committee at its meeting held on 13 February 2014, as circulated, be

hereby confirmed.


It was pointed that the reference to “high-end electricity” users in Min. No. 35.4 had to be

replaced by “high energy” users.

RESOLVED:

That subject to the amendment set out in the preamble above, the minutes of

proceedings of the Committee at its meeting held on 18 February 2014, as circulated, be

hereby confirmed.


93


RESOLVED:

That the minutes of proceedings of the Committee at its meeting held on 18 February

2014, as circulated, be hereby confirmed.

LEAVE GRANTED TO COUNCILLOR HARNING : MINUTES OF ME ETING HELD ON

4 FEBRUARY 2014

Councillor Harning referred to the copy of the minutes dated 4 February 2014, which

was included in the agenda of 6 March 2014 as an attachment to the Draft Oversight

Report. She pointed out that in that copy (agenda p. 60) it was incorrectly stated that she

was absent from the meeting on 4 February 2014 without having been granted leave.

She requested that the error be corrected, as she had indeed been granted leave of

absence by the Speaker for the period of 3 February 2014 to 14 February 2014.

Note by Secretariat: Councillor Harning was contacted by the Secretariat after the

meeting and it was explained that it had been established that the copy of the minutes of

4 February 2014 that was included in the agenda dated 6 March 2013 as an attachment

to the Draft Oversight Report, was a first draft, and that the final draft of the minutes of

4 February 2014 that was submitted for confirmation to the Committee on 25 February

2014, and was confirmed on that date, contained the correct information, namely that

leave of absence from the meeting held on 4 February 2014 had been granted to

Councillor Harning by the Speaker.

NOTED


94

OPENING STATEMENTS

The Chairperson congratulated Councillor R Odendaal on having been appointed leader

of the Democratic Alliance caucus in the NMBM Council after the retirement of

Councillor L J de Villiers.

Councillor Harning also congratulated Councillor Odendaal on behalf of the African

National Congress.

Councillor Harning then pointed out that the position of MPAC Chairperson, currently

being occupied by Councillor V J Tutu, had been granted the status of full-time

Councillor. She congratulated Councillor Tutu, and said that he was strict and

disciplined, and committed to clean governance.

Councillor Odendaal congratulated Councillor Tutu on behalf of the Democratic Alliance,

and stated that it was just unfortunate that MPAC had not been granted the status of a

dedicated, stand-alone committee, with additional administrative support.

NOTED


40. CIRCULAR NO 10/2014 : OUTSTANDING MATTERS FROM 2011/12

OVERSIGHT REPORT ADOPTED BY COUNCIL ON 28 MARCH 201 3

40.1 Critical vacancies – Executive Directors (Para graph 1.1.1, Agenda p. 4)

In response to a question as to what progress had been made to date with the

appointment of senior managers and when such appointments would be finalised, it was

reported by the Executive Director: Corporate Services that apart from the appointment

of the City Manager, Executive Director: Corporate Services and Chief Financial Officer,

the following appointments had also been made:


95

Executive Director: Infrastructure and Engineering; and

Executive Director: Electricity and Energy.

Reports on the latter two appointments would be tabled at the next Council meeting.

Interviews had been completed for the positions of:

Chief Operating Officer;

Executive Director: Economic Development;

Executive Director: Safety and Security; and

Executive Director: Human Settlements.

Reports would also be submitted to Council regarding the aforementioned four

appointments.

Interviews for the following positions would be held within two weeks:

Executive Director: Sport, Recreation, Arts and Culture (on Monday, 10 March 2014);

and

Executive Director: Public Health (in the week of 17 to 21 March 2014).

NOTED

40.2 Critical vacancies in Supply Chain Management Sub-directorate to be

addressed (Paragraph 1.1.2, Agenda p. 4)

In reply to a question about the cause of the long delay in finalising appointments, it was

stated that the main challenge was capacity issues in the Human Resources Sub-

directorate in terms of capturing the long-lists from which short-lists could be compiled.

The Acting Chief Financial Officer reported that an addition R1 m had been sourced for

the current financial year (2013/14) to fill Supply Chain Management vacancies, which

would be advertised shortly. Furthermore, funds had been provided on the 2014/15

budget to fill all the critical vacancies in the Supply Chain Management Sub-directorate.


96

NOTED

40.3 Infrastructure & Engineering and Electricity & Energy : Scarce skilled

positions (Paragraph 1.1.3, Agenda p. 5)

It was enquired how many artisans had been trained in terms of the LGSETA Artisan

Development Programme, and how many persons had qualified as engineers and as

technicians respectively.

RESOLVED:

That the Executive Director: Infrastructure and Engineering provide the following

information to the Committee:

(i) How many artisans have to date completed the LGSETA Artisan Development

Programme and were subsequently employed in the Infrastructure and

Engineering Directorate;

(ii) How many have to date qualified as engineers;

(iii) How many have to date qualified as technicians.

40.4 Succession planning : Budget and Treasury (Par agraph 1.2, Agenda p. 7)

It was confirmed that the official organogram had to be in place before appointments

could be made to address the staff capacity challenge in the Financial Statements and

Audit Matters Section in the Budget and Treasury Directorate, and thereby enable the

Directorate to undertake a succession planning initiative.

It was agreed that this matter had to be raised with the City Manager.

RESOLVED:

That in respect of the matter of succession planning in the Budget and Treasury

Directorate the City Manager be requested to indicate when the official organogram


97

would be put in place, which would enable the aforesaid Directorate to appoint additional

staff and undertake a succession planning initiative.

40.5 Maintenance of infrastructure : Water, Sanitat ion and Roads (Paragraph

2.1.1, Agenda p. 8)

Councillor Odendaal said that in view of the underspending on the 2011/12 Capital

Budget, it was not clear how it could be stated that the non-availability of funding

(agenda p. 9) was a root cause of the backlogs in the maintenance of infrastructure.

The Director: Water and Sanitation stated that the underspending did not happen in the

Water and Sanitation Sub-directorate, in other sections of the Directorate. Over the past

three to four years, the spending of the Water and Sanitation budget was consistently

between 98% and 100%. A portion of 30% to 40% of that budget was also focused on

the rejuvenation of assets.

NOTED

40.6 Street lighting (Paragraph 2.2, Agenda p.10)

Councillor Odendaal enquired about progress made regarding street lighting, particularly

in respect of high-mast lighting in the townships and informal settlements.

RESOLVED:

That the Acting Executive Director : Electricity and Energy report to MPAC at its next

ordinary meeting what progress has been made regarding street lighting, particularly in

respect of high-mast lighting in the townships and informal settlements.


98

40.7 Bucket system (Paragraph 2.3, Agenda p. 14) an d Bucket eradication

programme Agenda p. 14)

Councillor Dashwood questioned the figures quoted in the Conclusion (agenda p. 17)

about progress made in eliminating the bucket sanitation system. He said that there

were many more buckets in use that were not recorded and not serviced, and an

estimated number in respect of those buckets should at least also be reflected.

The Director: Water and Sanitation stated that the numbers quoted in the report

corresponded with the number of buckets collected and cleared every week by

municipal staff. He said that the number of buckets also decreased as new houses were

built on serviced sites where households had previously lived in backyard shacks and

used bucket sanitation. Once the new houses were completed and functional, the

buckets were removed, and figures in that regard were verified by the Water and

Sanitation Sub-directorate towards the end of 2013. In addition, a number of defective

toilets at new houses would be repaired within the next two months, after which the

buckets still in use at those houses would also be eliminated.

It was furthermore pointed out that informal settlements were very densely populated,

and in some instances households shared buckets, which explained why the official

number of households was higher than the number of buckets in use.

Councillor Odendaal asked whether it was taken into account that new families moved

into the informal settlement areas. The Director: Water and Sanitation said that the

Human Settlements Directorate kept track of the population count as far as possible,

and also tried to control the spreading of informal settlements. Furthermore, the new

communal toilet blocks to be built in the informal settlement areas would prevent the

perpetuation of the use of buckets.

He also pointed out that often groups of households moved from one informal settlement

to another area within the municipal area. This did not necessarily mean an increase in

the buckets to be serviced. The Sub-directorate worked, as far as possible, in co-

ordination with the Relocation Programme of the Human Settlements Directorate in

trying to prevent people from moving to areas where there were no services.


99

Councillor Dashwood said that in disputing the figures about the decreasing number of

buckets, he did not intend to be contentious. However, his statements were based on

the results of a study conducted by the Democratic Alliance Councillors fifteen months

ago, which showed a “much higher” number of buckets in use than the number reported.

The Director: Water and Sanitation stated in response to a question that the communal

container toilet block system would be implemented in three months’ time.

NOTED

40.8 Waste management : Transfer stations (Paragrap h 2.4, Agenda p. 18)

Concern was expressed at the long time it was taking to implement the upgrading of the

Kragga Kamma Waste Transfer Station.

The Acting City Manager stated that the tender for the work had been awarded at the

end of 2013, but that the letter of award had not yet been issued to the successful

tenderer. The Acting Director: Waste Management (Ms Dyakala) said that the Supply

Chain Management Unit had reported to her that the signing of the service level

agreement had been delayed because of legal issues.

The Acting Chief Financial Officer stated that the matter had not yet been brought to her

attention, and the Acting City Manager undertook to follow it up with Legal Services.

RESOLVED:

That the Acting City Manager, (Dr M Chabula-Nxiweni, follow up the reasons for the

delay in the finalising the awarding of the tender for the upgrading of the Kragga Kamma

Waste Transfer Station with Legal Services, and report on the matter to MPAC.


100

40.9 Beaches : Seasonal peak days; day-to-day maint enance (Paragraph 3.2,

Agenda p. 23)

Councillor Biddulph stated that regarding the Blue Flag beaches in particular, and the

beachfront in general, attention had to be given to developing an adequate plan for

coping with peak seasonal days. He said that currently good standards were not upheld

on those days on Blue Flag beaches or on the beachfront in general.

There was also a serious concern about law enforcement and by-law enforcement on

the beachfront currently, and about maintenance of infrastructure on the beachfront.

He requested that consideration be given to the possibility of accessing additional

EPWP funding to make provision for day-to-day maintenance of beachfront

infrastructure, and added that the latter would also be a source of job-creation.


(a) That a Seasonal Peak Days Plan be developed to ensure that good standards

are upheld on Blue Flag beaches in particular and the beachfront in general on

peak days when the public visit beaches in large numbers.

(b) That action be taken to improve law enforcement and by-law enforcement on the

beachfront.

(c) That consideration be given to the possibility of accessing additional EPWP

funding to make provision for the day-to-day maintenance of beachfront

infrastructure.

40.10 Supply Chain Management (Paragraph 4.1, Agend a p. 24)

In response to a question as to how well the new document management system in the

Supply Chain Management Unit was functioning, the Acting Chief Financial Officer

stated that there were still some challenges in respect of receiving information from the

Corporate Services Directorate, i.e. attendance registers and minutes of meetings.


101

However, good progress was being made towards ensuring sound document

management, and a report in that regard would be submitted to MPAC.

NOTED

40.11 Recommendations : Supply Chain Management (Pa ragraph 4.1(b)(ii),

Agenda p. 26)

Concern was again expressed that no progress appeared to have been made in respect

of recording Disclosure of Interests by Officials. The statement was made that the

disclosure was completely voluntary and relied upon integrity of staff. After further

discussion about whether disclosure was legally enforceable, it was

RESOLVED:

That the Acting Chief Operating Officer and Director : Internal Audit and Risk Assurance

draft a proposal on a suitable procedure for Disclosure of Interests by Officials and

submit it to the City Manager for consideration in the first instance.

40.12 Ward Committees (Paragraph 5.1, Agenda p. 27 and p. 64)

Councillor Odendaal stated that the report on Ward Committees (agenda p. 64) was

one-sided. He also reported that because of the “bungle” during the first Ward

Committee elections in 2011, the Democratic Alliance had launched an Application for

Review which was due in the High Court very soon, and which would bring the whole

current process (of electing Ward Committees) to a stop and prevent Ward Committees

from being implemented.

He added that it was the direct result of the refusal by the institution to “take the DA on

board” regarding the Ward Committee election process.

The Acting City Manager and the Acting Assistant Director: Legal Services stated that

they had no knowledge of such a legal process.


102

Councillor Harning stated that the African National Congress members were bitterly

disappointed that the Democratic Alliance had resorted to “this kind of tactic”. She

pointed out that currently, Ward Committee elections were under way and going

smoothly.

Councillor Odendaal stated that there were vast discrepancies in the process that had

been followed, and a decision by the court was needed. Councillor Biddulph pointed out

that at the time, the matter was submitted to Council, where it was resolved that the

whole process be withdrawn and started again. That did not happen, and the Council

decision was rescinded at a later stage, hence the DA’s decision to seek relief through

the court.

NOTED

41. DRAFT OVERSIGHT REPORT ON 2012/13 ANNUAL REPORT : REVIEW

41.1 Areas of amendment to the Annual Report (Parag raph 3.3, Agenda p. 49)

RESOLVED:

That the following amendments/corrections be made to the Draft Oversight Report on

the 2012/13 Annual Report that was tabled at the MPAC meeting held on 6 March 2014

(changes in bold) :

(a) Adding the name of Councillor T S Noqoli to the list of MPAC members (agenda

p. 39)

(b) Changing the number of Democratic Alliance members serving on MPAC to 5

(agenda p. 44)

(c) Deleting paragraph (i), agenda p. 50.

The deletion of paragraph (i) was due to the response by the Director: Water and

Sanitation who stated that in the year under review, all residents had access to

potable water within 200 m, and that the only time that persons within the


103

municipal area were more than 200 m from potable water, was for instance when

houses were built to replace informal housing and people had to be temporarily

moved because of the construction work, in which case measures were taken to

provide them with potable water. However, this had not happened during the year

under review.

(d) Amending paragraph (l) (agenda p. 50) by correcting the number of meetings

held to eight (8) ordinary Council meetings and six (6) special Council meetings.

(e) Adding at the end of paragraph (m), agenda p. 50, after the word “Whippery”, the

following: “, as opposed to how many meetings should have been held”.

(f) By amending paragraph (n), agenda p. 50, to read as follows (changes in bold):

“Inserting MPAC’s functional challenges, i.e. the absence of Acting Municipal

Managers and Acting Executive Directors at meetings and non-submission of

outstanding reports in paragraph 2.1.4 on page 47”.

(g) By adding in paragraph (q), (agenda p. 51) details about the factors that affected

the work of Internal Audit, namely political interference; delays in the release of

reports from the Office of the City Manager; and reluctance of some officials and

union members to provide information required in the course of investigations.

(h) By making reference in paragraph (s), (agenda p. 51) to the 1 000 jobs that high

energy users were forced to shed in the year under review.

(i) By amending paragraph (t) (agenda p. 51) as follows after the words “every

second month”: “which was incorrect, to reflect the actual number of meetings

held, as well as the number of meetings that should have been held.

(j) By correcting the Councillor’s name in paragraph (w) (agenda p. 52) to that of

Councillor E Tshazibani (Williams was Councillor Ts hazibani’s maiden

name).


104

(k) By adding the following additional paragraph (x): Inserting more detailed

information on water and electricity losses, reflec ting quantities, monetary

value and mitigation measures, in the Annual Report .

41.2 Recommendations (Paragraph 3.4, Agenda p. 52)

RESOLVED:

That the following amendments/corrections be made to the Draft Oversight Report on

the 2012/13 Annual Report that was tabled at the MPAC meeting held on 6 March 2014

(changes in bold) :

(a) By inserting the following recommendation 3.4.2 (a) (b) and (c) and the following

recommendation 3.4.3 after paragraph 3.4.1 (agenda p. 52), and by adjusting the

numbers of subsequent paragraphs accordingly:

3.4.2 Irregular, Fruitless and Wasteful Expenditur e

(a) The Municipal Public Accounts recommends that t he City Manager

obtains guidance from National Treasury on how the Council should

address irregular, fruitless and wasteful expenditu re and submit an

action plan reflecting remedial action to address t he qualified audit

opinion and matters of emphasis raised by the Audit or-General, as

well as the matters of concern expressed by MPAC, a s set out in

points 3.2.1 and 3.2.2 in this Oversight Report to the Mayoral

Committee, MPAC, Council and other Council structur es, and report

progress being made on the implementation of the ac tion plan on a

quarterly basis.

(b) The Municipal Public Accounts Committee recomme nds that, due to

the fact that there are currently very few or no co nsequences for

officials who incur irregular, fruitless and wastef ul expenditure, and

as a measure to curb same, Council adopt the stance that some form

of action be taken against officials involved in su ch action, unless it


105

can be proved that such expenditure was incurred be cause of

circumstances beyond the control of the person(s) i nvolved.

(c) The Municipal Public Accounts Committee recomme nds that the City

Manager and the Chief Financial Officer ensure comp liance with

Section 32 of the Municipal Finance Management Act and Regulation

74 of the Municipal Budget and Reporting Regulation in respect of

unauthorized, irregular, fruitless and wasteful exp enditure.

3.4.3 Deviations


Manager draw up an Action Plan of measures that can be put in place to

reduce the unacceptable number of deviations, which the Committee deems

to stem from a lack of proper planning or political pressure.

(b) By replacing the word “competent” in paragraph 3.4.2.3 (b) and (c) (to be

renumbered 3.4.4.3) (agenda p. 53) with the words “suitably qualified”.

(c) By numbering the current recommendation in paragraph 3.4.3.1 (agenda p. 53)

(to be renumbered 3.4.5.1) as recommendation (a) and adding the following

recommendation (b):

(b) The Municipal Public Accounts Committee recomme nds that the

identification of more funding be prioritised to en sure the roll-out of

weekly refuse collection services throughout the Mu nicipal area.

(d) By inserting the following recommendation (b) in paragraph 3.4.3.5 (agenda p.

54) (to be renumbered 3.4.5.5) and by renumbering paragraph (b) (agenda p. 55)

as recommendation (c):

(b) The Municipal Public Accounts Committee recomme nds that a

communication/media campaign be launched to educate residents

where and how they can report water leaks in their community.


106

(e) By inserting the following recommendation (d) in paragraph 3.4.3.6 (agenda p.

55) (to be renumbered 3.4.5.6) and renumbering the current recommendation

(d) as (e):

(d) The Municipal Public Accounts Committee recomme nds that a

quarterly JOC Performance Report be tabled at MPAC.

(f) By adding the following recommendations (b) in paragraph 3.4.3.7 (agenda p. 55)

(to be renumbered 3.4.5.7:

(b) The Municipal Public Accounts Committee recomme nds that an

appropriate Potholes Strategy be implemented, based on the

outcome of (a) above.

(g) By replacing the word “Municipality” in the second line of recommendation (a) in

paragraph 3.4.3.8 (agenda p. 56) (to be renumbered 3.4.5.8) with the words

“Electricity and Energy Directorate”.

(h) By adding the following recommendations (b) and (c) in paragraph 3.4.3.8

(agenda p. 56) (to be renumbered 3.4.5.8):

(b) The Municipal Public Accounts Committee recomme nds that, in the

development of the 2014/15 Budget, the Executive Di rector:

Electricity and Energy, in consultation with the Ch ief Financial

Officer, gives priority to addressing the lack of a dequate lighting

throughout Nelson Mandela Bay, especially in townsh ip and informal

settlement areas.

(c) The Municipal Public Accounts Committee recomme nds that all

components for street lights be sourced locally wit hin South Africa

from reliable, sustainable service providers.

(i) By amending the word “meeting” in paragraph 3.4.4.2 (agenda p. 57) (to be

renumbered 3.4.7.2) to “meetings” .


107

(j) By amending the wording of paragraph 3.4.4.2 (agenda p. 57) (to be renumbered

3.4.7.3) as follows (changes in bold):

The Municipal Public Accounts Committee recommends that the City Manager

ensures that all municipal by-laws be strictly enforced, including by-laws

regulating dogs , as dogs that are not kept on leashes on beaches and other

public spaces, pose a health and safety risk to the public.

(k) By amending the word “higher” in the last line of paragraph 3.4.4.4 (agenda p. 57)

(to be renumbered 3.4.7.4) to “high” .


COUNCILLOR V J TUTU



108

(Meeting held on 13 March 2014)






Councillor B N Mafaya (9:30)




ALSO PRESENT: Acting Chief Operating Officer (Ms N Mzinzi)

Executive Director: Corporate Services

Acting Chief Financial Officer (Mr A Ferreira)


(Ms C Williams)



Director: Support Services (Infrastructure and Engineering)

(Mr B Hutton)

Acting Director: Office of the Chief Financial Officer (Mr R Verson)

Acting Director: Policy, Strategy and Research (Office of the COO)

(Ms S Claasen)

Acting Director: Public Health (Mr R le Roux)

Assistant Director: Corporate Services (Mr J Sigonyela)


Administrative Manager: EDTA (Mr E Noack)



Administrative Support Officer (Office of the COO) (Ms M Nel)



109



ABSENT WITHOUT

LEAVE: Councillor T Gana



CODE OF CONDUCT / APOLOGIES

It was reported that leave of absence had been granted to Councillor J N Mapu until the

end of March 2014.

An apology was submitted on behalf of Councillor N R Captain, who could not attend

because of illness.

RESOLVED:

That leave of absence from this meeting of the Committee be granted to Councillors

J N Mapu and N R Captain.

APOLOGIES:

Apologies were submitted on behalf of the City Manager, who was attending a Provincial

MINMEC meeting; the Acting Chief Operating Officer (Dr M Chabula-Nxiweni) who was

out of town on Council business, but was represented by Ms N Mzinzi who was acting in

her place; the Acting Chief Financial Officer (Ms B de Scande) who could not attend

because of a family bereavement and was represented by Mr A Ferreira; the Executive

Director: Infrastructure and Engineering (Mr W Shaidi) who was represented by Mr B

Hutton; the Acting Executive Director: Public Health (Mr A Tolom) who was on paternity

leave and was represented by Mr R le Roux; and the Acting Executive Director:

Recreation and Culture (Ms L Mxenge) who had a doctor’s appointment that could not

be changed, and was represented by Mr E Noack.

NOTED


110



2000)





42. DRAFT OVERSIGHT REPORT ON THE 2012/13 ANNUAL RE PORT –

FURTHER AMENDMENTS

42.1 Further areas of amendment to the 2012/13 Annu al Report (changes in bold)

RESOLVED:

That the following further amendments/corrections be made to the Draft Oversight

Report on the 2012/13 Annual Report attached as Annexure “A” to the agenda for the

MPAC meeting held on 13 March 2014 (changes in bold):

(a) Inserting the following paragraph before the last paragraph of the Foreword by

the Chairperson (agenda p. 22).

It is noted with concern that, despite the fact th at Council has twice

resolved that the Municipal Public Accounts Committ ee become a stand

alone Committee, no effect has been given to this r esolution. Together with

my fellow MPAC members, I hereby appeal that this r esolution be

implemented as a matter of urgency, in the interest of strengthening the

oversight process and good governance in the instit ution.


111

The Committee emphasised that Council had twice already resolved that MPAC be

made a dedicated, stand alone Committee, but that its resolution had not yet been

implemented. It was strongly felt that implementation now had to follow.

(b) Inserting the words “the Speaker and ” between the words “thank” and “officials”

in the third line of the last paragraph of the Foreword by the Chairperson (agenda

p. 22).

(c) Amending paragraph (s), which was renumbered paragraph (r) in the 13 March

2014 version of the Oversight Report after the deletion of paragraph (i) in the 6

March 2014 version, to read as follows:

(r) Amending the report on pages 138 to 140, which sets out the positive side

of local economic development in Nelson Mandela Bay, by acknowledging

that substantial job losses occurred and that disadvantaging problems

were experienced by local commerce and industry in the year under review

(in this regard, the high energy users were forced to shed approximately

1 000 jobs).

(d) Inserting the words “comparisons with previous years ” between the words

“quantities,” and the words “monetary value” in paragraph (x) (agenda p. 32).

It was stated that comparisons would provide a benchmark to assess the situation

regarding water and electricity losses.

42.2 Further amendments to recommendations (Agenda p. 32)

RESOLVED:

That the following further amendments/corrections/additions be made to the Oversight

Report on the 2012/13 Annual Report that was tabled at the MPAC meeting held on 13

March 2014 (changes in bold) :


112

(a) Inserting the following additional recommendation (c) under paragraph 3.4.2

(agenda p. 33) and renumbering the existing recommendation (c) as

recommendations (d):

(c) The Municipal Public Accounts Committee recomm ends that the City

Manager and the Director: Internal Audit and Risk A ssurance submit

quarterly reports on the progress made with investi gations of alleged

fraud and corruption cases within the institution f or possible

intervention by the Committee, if necessary.

The Committee wished to indicate that forensic investigations should be finalised as

speedily as possible, and a time-line of two years was suggested. However, the Director:

Internal Audit explained that it would be difficult to set a time-frame on forensic

investigations, in view of the many challenges posed by such investigations.

(b) Inserting the following new recommendations (a) and (b) to replace the existing

recommendations (a) and (b) in paragraph 3.4.4.3 (agenda p. 34) and

renumbering the existing recommendations (a), (b), (c), (d) and (e) as

recommendations (c), (d), (e), (f) and (g) respectively:

(a) The Municipal Public Accounts Committee recomme nds that the City

Manager ensures that the remaining vacant Executive Directors’

positions be filled by not later than 30 June 2014.

(b) The Municipal Public Accounts Committee recomme nds that the City

Manager ensures the filling of critical vacancies i n the Supply Chain

Management Sub-directorate by not later than 30 Jun e 2014.

(c) Adding the following paragraph 3.4.4.4 under the heading reflected below after

paragraph 3.4.4.3 (agenda p. 35):

3.4.4.4 Succession planning – Budget and Treasury


Manager and the Chief Financial Officer ensure the development of a


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succession plan, so that, for the purpose of Counci l’s annual Audit

Process, expertise is transferred among officials i n the Budget and

Treasury Directorate and that officials are capacit ated to provide the

required information, technical advice and support to the Office of the

Auditor-General, such plan to take into account the issue of employment

equity.

(d) Changing the words “(JOC Centre)” in brackets in the third line of

recommendation (b) in paragraph 3.4.5.6 (agenda p. 37) to (Call Centre) in

brackets.

The Executive Director: Safety and Security stated that the Executive Mayor recently

called for the Joint Operations Centre – also called the Service Delivery Centre - to be

made fully operational once again, and for the establishment of an Operations Centre in

the Port Elizabeth area and one in the Uitenhage area. (He explained that the Call

Centre and the Operations Centre worked hand in hand, as the former received calls

and the latter ensured that the required work on the ground was done.) He was

preparing a report with costing in respect of the project which would be submitted to the

Executive Management Committee. A Process Plan was also being prepared for

submission to the Executive Management Committee and to MPAC.

(e) Adding the following paragraph 3.4.5.9 under the heading reflected below after

paragraph 3.4.5.8 (agenda p. 38):

3.4.5.9 Safety and Security


Manager and the Executive Director: Safety and Secu rity ensure that an all-

encompassing strategic plan to address the followin g issues in the Safety

and Security Directorate be developed and submitted to Council by 30 June

2014:

(i) Traffic Department – covering all operational a spects, including, but

not limited to the services rendered at traffic and licensing centres,

with the emphasis on improvement in productivity, e fficiency and


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service levels, staffing, the current lack of a 24- hour traffic service,

union interference, acceptable income and revenue c ollection from

fines;

(ii) Fire Department – insufficient budget and unde rstaffing.

(f) Adding the following paragraph 3.4.6 under the heading reflected below after

paragraph 3.4.5.9:

3.4.6 Local Economic Development


Manager and the Executive Director: Economic Develo pment, Tourism and

Agriculture submit a progress report and Implementa tion Plan to the

Municipal Public Accounts Committee and Council by 30 June 2014

regarding the establishment of a one-stop shop for small businesses.

(g) Adding the following paragraph 3.4.7 under the heading reflected below after

additional paragraph 3.4.3:

3.4.7 Assistance to the Poor (ATTP)


Manager and the Chief Financial Officer ensure that the processing of

applications received in terms of the Assistance to the Poor Scheme be

fast-tracked and that regular progress reports in t his regard be submitted to

the Municipal Public Accounts Committee.

It was reported that at many of the recent public participation meetings, members of the

communities complained that they did not receive feedback from the Municipality in

response to their applications for benefits in terms of the Assistance to the Poor

Scheme.

(h) Adding the following paragraph 3.4.6 under the heading reflected below after

additional paragraph 3.4.7:


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3.4.8 Sports, Recreation, Arts and Culture – Beache s

(a) The Municipal Public Accounts Committee recomme nds that the City

Manager and the Executive Director: Sports, Recreat ion, Arts and

Culture ensure the development of a Seasonal Peak D ays Plan to

uphold good standards on all municipal beaches and beachfront

areas, and Blue Flag beaches in particular, on peak days when high

visiting numbers are experienced.

(b) That consideration be given to the possibility of accessing additional

EPWP funding to make provision for the day-to-day m aintenance of

beachfront infrastructure.

CONCLUSION

RESOLVED:

(a) That copies of all the minutes of proceedings of the public participation meetings

held in respect of the 2012/13 Annual Report/Budget/IDP and SDBIP be attached

to the final copy of the 2012/13 Oversight Report on the Annual Report.

(b) That a copy of the final draft of the 2012/13 Oversight Report on the Annual

Report be circulated electronically to all MPAC members for perusal, and that if

amendments are deemed necessary by a member or members, a further brief

meeting of the Committee be held to finalise the document.


COUNCILLOR V J TUTU



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ANNEXURE “B” : ADVERTISEMENTS/INVITATIONS TO

THE PUBLIC TO PARTICIPATE


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ANNEXURE “C” : MINUTES OF PUBLIC PARTICIPATION MEET INGS ON THE

2014/15 IDP AND BUDGET PROCESS AND THE 2012/13 ANNU AL REPORT HELD

DURING 24 FEBRUARY TO 6 MARCH 2013

MOLLY BLACKBURN CLUSTER

(WARDS 3, 4 AND 5)

(Minutes of meeting held on Monday, 24 February 201 4 at Walmer High School, at

18:00)

PRESENT: Councillor B Naran (Chairperson)

Councillor J Tutu

Councillor N Benya

Councillor M Harning

Councillor M Steyn

Councillor D Hayselden

INPUT BY THE PUBLIC

• General lack of facilities and programmes for the youth and the current Multi-Purpose

Centre not being utilised at all.

• Absence of traffic lights at busy intersections.

• High-mast lights to be repaired.

• Illegal electricity connections posed a danger to children.

• Electricity to be installed in informal areas.

• Tar roads not being maintained.

• General lack of maintenance in the Walmer Township area.


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• Lack of consultation with community structures in respect of projects in the area.

• The Annual Report and IDP should be Ward-based.

• The IDP should reflect the issue of integration of communities and what was planned

for Walmer.

• Removal of household refuse to be done more frequently.

• The introduction of sustainable economic development initiatives in the Walmer area

to be prioritised.

• The benefits of the EPWP to be extended to also include Walmer.

• General lack of sports facilities and no future plan indicated in this regard.

• The MBDA should introduce projects in the Walmer area as well.



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LILLIAN DIEDERICKS CLUSTER

(WARD 41)

(Notes of meeting held on Monday, 24 February 2014 at Joe Slovo Community

Hall, at 18:00)

PRESENT: Cllr J Seale (Chairperson) Cllr M Bungane Officials Members of the public Concerns raised by the community members include:

• The community, together with the Councillor, raised concerns around the size of

the venue. It was mentioned that public meetings in that area were usually

arranged in a tent or a marquee large enough to accommodate all residents and

not in the small community hall used as venue for this meeting.

• On two occasions, protest actions and memorandums had been handed over at

the City Hall, with a list of concerns from the community; no acknowledgment or

response had been received in that regard. The community requested the

Municipality to first address the issues raised in the memorandums prior to holding

public meetings in their area.

• The concern was expressed that officials did not respond or attend to community

matters and complaints, but knew the way to Joe Slovo very well when a public

participation exercise had to be conducted.

It was resolved by the leadership present, that the meeting be postponed and that

another one be arranged in a tent and with all the various stakeholders engaged and

informed in time to avoid unsuccessful meetings.



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(WARDS 6, 7, 8, 9, portion of 12, AND 39)

(Minutes of meeting held on Monday, 25 February 201 4 at Newton Park Library, at

18:00)

PRESENT: Councillor R Odendaal (Chairperson)

Councillor B Naran

Councillor N S Soul

Councillor B A Matthee

Councillor M J De Andrade

Councillor S L Sauls

Councillor H Muller

Councillor M C C Roberts

Councillor G Rautenbach

Councillor G V Valeyden

Councillor L N Mettavainio

1. OPENING AND WELCOME

Councillor R Odendaal welcomed all present at the meeting.

2. 2012/13 ANNUAL REPORT AND 2014/15 IDP AND BUDGET REVIEW

Summaries of the above documents were presented by Councillors R Odendaal and

B Naran, whereafter the community members present were granted an opportunity to

raise any concerns/input in that regard.


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3. INPUTS RAISED BY THE PUBLIC

The following concerns/questions were raised by the members of the public:

• Ward 39 – General lack of infrastructure and development in the Grogro informal

settlement, Sherwood area over the last 20 years. A request for a proper water

supply to be provided to the area was also raised.

• Ward 39 – No assistance given to the Greenfield Community with regard to the

rectification of defective houses and other infrastructure.

• Lack of training for SMMEs, cooperatives and informal traders and no

assistance/guidance in acquiring contracts.

• Ward 7 – Failure to replace faulty water and electricity meters.

• Ward 7 – Local entrepreneurs not being trained and no contracts being awarded to

them.

• Ward 7 – No provision in the Budget to assist and train the cooperatives and NGOs.

• Unoccupied house in Schauderville/Holland Park, used by criminals and vagrants for

criminal activities.

• Durban Road in need of upgrading.

• The Annual Report should indicate which wards had benefitted from EPWP and

SMMEs programmes. Friction between communities and EPWP workers was also

on the increase, as the latter were not taken from people residing in the ward which

they work in.


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• Ward 12 and Malabar Ext. 6 – RDP houses were built on slabs, causing water to

seep in through the floor and walls. A number of these defective houses should be

rectified as the walls and floors were cracked.

• Ward 12 and Malabar Ext. 6 – New sports field required in the area, as the one in

Malabar was in a poor state of repair.

• Ward 12 and Malabar Ext. 6 – Clinic closed since 2007. Due to staff shortages and

other resources, the Clinic was in operation for only three hours per week.

• Concern was expressed, as Ward Councillors and the communities were not being

made aware of when to register with the Municipality’s Human Resources

Transformation Services Section to participate in the Unemployed Graduates

Programme as well as other Learnership Programmes for the employed and

unemployed.

• Ward 12 – The Municipality should consider alternative methods of informing the

communities of vacancies within the institution, as a large section of the communities

could not afford to purchase local newspapers.

• Residents of Parsonsvlei were living in appalling conditions. Community members

were informed that they would have to relocate to another area; however, they had

not been provided with new building materials. Concern was also expressed that

members had not been informed to which area they would have to relocate, and no

response had been received from the Municipality as to what would happen to the

graves of deceased relatives buried on the land they currently occupied.

A need also existed for a stated-owned school in the area, as the tuition fees of the

Model C School was considered too expensive. Lack of basic services to those

residing in Parsonsvlei was also a main concern.

A concern was also raised regarding the lack of roads in the area, especially in view

of the fact that emergency vehicles could not access the area.


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• Malabar and Ward 10 – A concern was raised about the lack of proper housing and

that no clinic services were being provided to these communities.

• Damaged corrugated roofs of houses in Kensington, Schauderville and Holland Park

required urgent intervention.

• The low collection rate in respect of traffic fines was a matter of general concern and

it was pointed out that an improvement in the collection rate would result in better

service delivery for all residents of the Metro.

• Illegal electricity connections should be attended to by the Municipality as a matter of

urgency, as a number of people suffered horrific injuries due to unprotected cabling,

with some even losing their lives.

• Although the establishment of a Municipal Police Force was welcomed, concern was

expressed that no provision for such a service had been made on the Budget.

• Water leaks were reported to the Municipality, but were not being repaired in good

time.

• Lack of programmes for the youth resulted in them participating in criminal activities.



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ZOLA NQINI CLUSTER

(WARDS 52 AND PORTION OF 53)

(Minutes of meeting held on Tuesday, 25 February 20 14 at Khayamnandi

Community Hall, Despatch, at 18:00)

Present

Portfolio Committees Chairpersons

Municipal Public Accounts Committee (MPAC) (Cllr Tutu) (Chairing)

Safety & Security (Cllr Mafana)

Corporate Services (Cllr Jikeka)

Officials

Members of the Public

1. OPENING

A member of the community opened the meeting with a prayer, whereafter the

Chairperson welcomed all present and declared the meeting officially opened.

In his opening remarks, the Chairperson outlined the procedure for the session.

2. DISCUSSIONS

2.1 2012/13 Annual Report

The MPAC Chairperson presented some background information, to the report, stating

that it was a mechanism that allowed the Municipality to account to communities about

the achievements and the implementation of the needs that were identified at the

previous interaction.


126

Although the community welcomed the report, enquiries were made in respect of the

following:

Regarding the Expanded Public Works Programme, the Chairperson explained that the

initiative was designed to provide short-term jobs for those participating.

With regard to the training for plumbers, discussions centred around the level of

qualifications that the programme was producing. The members of the community

proposed that the training of plumbers should be structured in such a manner that the

people who go through it are properly qualified as apprentices and artisans.

The Director: Water and Sanitation, Mr Barry Martin, reported that the Sector Education

and Training Authority (SETA) reintroduced the apprenticeship programme.

A request was made for the Municipality to allocate people to the area who were familiar

with it, because on many occasions people sent in to prepare water leaks spent

considerable time trying to locate the place that required attention.

Allegations were made that the people expected to fix the water leaks did not attend to

the complaints, on many occasions spending the time in local shebeens. At this

juncture, the meeting agreed that, in such instances, the people should take photos and

the registration numbers of vehicles being used and must report them to the municipal

0800 toll free number.

The Director: Water and Sanitation, Mr Barry Martin, explained that the water leaks of

Assistance To The Poor (ATTP) beneficiaries would be attended to when the

programme resumed in April 2014 to repair same.

With regard to Despatch municipal buildings and offices, a concern was also expressed

that not all the people working there were not from Despatch.

With respect to Ward Councillor community meetings, it was alleged that the Ward 52

Councillor was not convening any community meetings, a matter that was disputed by

the relevant Ward Councillor, Cllr Greyling.


127

2.2 IDP and Budget Review

Cllr Jikeka outlined what was contained in the IDP and Budget review, explaining that

the Constitution directed the Municipality to interact with communities in order to account

about what the expectations were.

3. INTERACTIVE SESSION

Responding to the matter of senior offices being located in Port Elizabeth and not

accessible to the Despatch residents, Cllr Jikeka explained that former Councillor

Thobile Lawu had been appointed to man the satellite office of the Executive Mayor in

Despatch. He urged members of the community to make use of that office.

A request was made for the Municipality to consider the matter of a sub-council for the

Despatch area. Opposing views were expressed in this regard.

Enquiries were also made about the sidewalks promised previously. In response, the

Executive Director: Infrastructure and Engineering, Mr Walter Shaidi, explained that the

delays were as result of no planning and drawing being prepared for the side walks.

He confirmed that the sidewalks were covered in the budget and will be implemented

during the current financial year.

Community members enquired about the Ward Discretionary Fund, which they alleged

was being used by the Ward Councillor to support the Soup Kitchen only.

Also of concern to residents was the fact that youth from the Despatch area was not

being employed.

There was a request for Library Services in Despatch and concerns about municipal

building and offices that were underutilised or not used at all.

Also of concern was the high unemployment rate amongst the youth. Also in Area 6, big

holes had been dug and left open for many months.


128

Complaints were raised that beneficiaries were not receiving their houses and that many

houses were occupied by people not known in the area.

A request was made also for Ward 52 Offices to be established.

With regard to illegal dumping, it was suggested that the collection should be done on a

weekly basis in order to minimise illegal dumping.

Members of the community requested that Despatch also be incorporated as an Urban

Renewal node, because there was no effort to improve the quality of lives of residents.

With regard to the demarcation of Ward boundaries, it was alleged that Ward 41 was

benefiting in terms of housing development, at the expense of Despatch residents,

because of the demarcations.

According to the residents, the fewer than 3000 houses were required in Despatch. In

this regard, a request was made for the Human Settlements and Infrastructure and

Engineering Directorates to avail themselves to visit the area in order to take residents

into confidence about the projects proposed for the Despatch area.

A request was also made for the provision of a clinic and a satelite station for South

African Police Services.

Concerns were raised about the delays in obtaining approval for the ATTP applications.

With regard to burial sites, it was suggested that there should be a set standard for the

entire Metro.




129

ALEX MATIKINCA CLUSTER

(WARDS 54, 55, AND 57)

(Minutes of meeting held on Wednesday, 26 February 2014 at NU 30 Community

Hall, at 18:00)

1. OPENING AND WELCOMING

Councillor Nyilikana welcomed everyone present and thanked them for their attendance;

he then formally introduced the deployed Councillors and gave a brief background of the

meeting and its objectives.

Members of the community were informed on the purpose of the meeting and given brief

explanation on the reasons for taking the Budget and IDP process to the people.

2. PRESENTATION OF 2012/13 ANNUAL REPORT

Councillor B Naran (Budget and Treasury) explained the purpose of IDP and the role it

played to both the community and the municipality. He further explained the priorities in

the IDP and how they were being determined. He also mentioned that the purpose of

the IDP Office was to listen to the concerns and proposals of the Community and to take

them back to the Council for consideration.

Councillor Nyilikana elaborated on the Ward-based plan, which leads to the IDP and

then to budget.

The following were noted as the key areas of review:

(a) Assistance to the Poor (ATTP).

(b) Training of SMMEs.

(c) Provision of basic services (water and sanitation).

(d) Tarring of gravel roads.


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(e) Acceleration of effective and efficient service delivery.

(f) Improvement of parks, playgrounds and cemeteries.

(g) Facilities like sports and libraries.

3. PRESENTATION OF IDP AND BUDGET REVIEW

Councillor B Naran briefly explained the role of MPAC (Municipal Public Accounts

Committee) in municipal processes and made a presentation on budget matters. He

clarified the difference between the Operating and the Capital Budgets. He further

explained a number of challenges on budget spending patterns, most pertaining to

Integrated Public Transport System (IPTS):

• Underspending

• Wasteful and irregular expenditure

• Unauthorised expenditure

Research had been undertaken to resolve the above challenges as well as staff

shortages and audit queries, which had been identified as the key reasons for them.

Councillor Naran further mentioned that an application for the roll-over of funds had

been submitted to the National Treasury. He provided clarity on remaining services that

were still in the process of being finalized and gave reasons for such delays; backlog on

rectification of houses, SMME training, tarring of gravel roads, illegal dumping of refuse

waste. Further, he informed the community about ATTP (assistance to the poor)

functions, and how much had been spent to date.

Councillor Magopeni translated into isiXhosa, adding that the review processes allowed

the communities to make changes in the IDP and Budget, as their needs and priorities

change over time.


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Ward 54

o Concerns were raised about the sports club being assisted with funding that was

not meant for that purpose.

o A particular ATTP official had an unpleasant attitude when assisting the residents.

o That co-operatives be formulated for the refuse waste picking.

o Formation of Ward Committees.

o Streets, clinics and schools with feeding schemes and transport at NU29.

o SETA skills for youth.

o Job creation to prevent the need for ATTP.

o Need technical skills for youth employment.

o 40-55 years retirement plans.

o Renovation of old RDP houses.

o Refusal cans instead of wheel bins.

o Technical College in NU12.

Wards 55 and 57

o Concern raised about Eastern Cape matters always taking too long to be

improved.

o FET Colleges for youth to promote job creation.

o NU29 houses being given to people from outside of Motherwell.

o Water leaks taking too long to be repaired by the Municipality.

o Provision of schools and clinics during relocation to new areas.

o Increase in the number of waste collectors.

o Renovation of old RDP houses.

o Floors around Nkune street (stormwater drainage).

o Bricks being stolen at stadiums.

o Bursaries for Grade 12 passed students.


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5. RESPONSES FROM COUNCILLORS

Councillors Magopeni and Nyilikana responded by acknowledging that they had taken

note of all the complaints and compliments that were tabled. They undertook that when

they returned with the Second Draft IDP/Budget, they would also present action plans

for the complaints raised.

6. VOTE OF THANKS

Councillor Nyilikana thanked the communities for their participation.

7. CLOSURE

The meeting was declared closed at 20:30.



133

GOVAN MBEKI CLUSTER

(WARDS 20, 21, 22 AND 24)

(Minutes of meeting held on Wednesday, 26 February 2014 at Daku Hall, at 18:00)

PRESENT: Councillor S Jodwana (Chairperson)

Councillor B Lobishe (Portfolio Councillor : Economic Development,

Tourism and Agriculture)

Councillor P Ndlovu (Portfolio Councillor : Public Health)

Councillor N Belu

Councillor M Feni

Councillor B Nombiba

± 130 members of the public

ALSO PRESENT: Acting Executive Director : Human Settlements (Mr L Petuna)

Budget and Treasury (Ms N B Lamani)

Budget and Treasury (Ms M P Mpandle)

Budget and Treasury (J Tabata)

Budget and Treasury (Mr A Hili)

Communications Office (Mr M Mniki)

Communications Office (Mr T Mkutu)

IDP Office (Ms Makwakwa)

IDP Office (Ms L Shosha)

IDP Office (Mr M Mlele)

Constituency Office (Ms P Mtati)

Constituency Office (Mr N Batyi)

Constituency Office (Mr S Maqina)

Economic Development, Tourism and Agriculture (Ms N Mkhabela)

Human Settlements (Ms X Zandi)

Human Settlements (Mr M Bisiwe)

Infrastructure and Engineering (Mr S Majali)

Infrastructure and Engineering (Mr M Febana)

Infrastructure and Engineering (Mr S K Mnqamisa)

Infrastructure and Engineering (Mr K Mtywaru)


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Infrastructure and Engineering (Mr L Ntshebe)

Electricity and Energy (Mr V Twani)

Safety and Security (Mr M Mabuza)

Safety and Security (Mr O T Mnqayi)

Safety and Security (Mr T G Baba)

Safety and Security (M R Nokoyo)

Safety and Security (Mr L S Nyiki)

Safety and Security (Mr N Mgooqi)

Senior Committee Secretary (Mr D Hlebani)


The Chairperson, Councillor Jodwana, opened the meeting with a prayer, whereupon he

declared the meeting duly open and welcomed all those present. He then explained the

purpose of the meeting, namely that it was to give feedback on the IDP/Budget 2012/13

performance of the Municipality with regard to issues of service delivery which

communities had suggested to be put therein. The Chairperson requested the full

participation of members of the public from the four (4) wards invited to attend this

meeting, namely Wards 20 to 24. He stated that many service delivery protests were

occasioned by a lack of communication with communities.

Before calling Councillor Lobishe to come forward to deliver the report, the Chairperson

took the opportunity to introduce the municipal officials present at this meeting,

whereafter Councillor Lobishe took the stage, first reading out the service delivery

successes of the municipality as contained in the 2012/13 Annual Report, in the form of

an executive summary. However, she also stated that there were some challenges, in

particular in the collection of traffic fines, which could not be implemented to the

satisfaction of the Municipality. Copies of the Executive Summary of the Draft Annual

Report were distributed to members of the public at this meeting.

In conclusion, Councillor Lobishe called upon residents present at this meeting to make

comments/inputs, ask questions and/or clarities flowing from the report. The following

are some of the concerns/inputs made:


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Skills Development

The municipality was requested to partner with the private sector in respect of the

above. The municipality should implement and monitor business programmes.

Silvertown

No electricity had been installed, despite the promises made since 2013.

Ward 21

A resident of the above Ward congratulated the Municipality with its housing provision

programme. He then requested that the institution intervene in the selling of employment

to penniless job/work seekers.

Korsten Restitution Land Claims

It was requested that the Municipality follow up on this matter.

Wards 24 – Khiwane

A resident made a passionate plea to the municipal Councillors to find her a home, as

she had been living in a shack since 1977. Another request was made on behalf of an

elderly lady to get a prepaid electricity box from the municipality (the lady was too sick to

come to this meeting).

Volunteer

A volunteer requested to be provided with a broom, rake and overall to do a better job of

the cleaning duties he had volunteered to perform in his area.


136

Solomon Mahlangu/Railway Reserves

The residents living in the abovementioned area requested that the Municipality assist

them with the rectification work to their extended RDP houses, which had not yet been

done.

Some of the residents complained that the contractor, who they alleged was employed

by the Municipality, had carried out the rectification work on their extended RDP houses

but left without finishing the job.

Councillor Ndlovu replied that the Railway Reserve matter was in the Office of the

Deputy Executive Mayor and was handled by Mr Mgwanza.

Ward 22

A member of the public staying in Ward 22 appealed to the Municipality that, when

relocated from her shack, she be moved into a house.

Ward 19

The Library operating at Enkulhazweni had been closed, without any reasons being

provided for the closure.

Lodgers/Backyard Dwellers

It was stated by a resident that a promise had been made at one of the Public

Participation meetings that lodgers would be relocated to houses, but that nothing had

been said about the matter at this meeting.

The following were some of the responses given to the above questions/inputs and/or

comments:


137

Khiwane and Backyard Dwellers expressed satisfaction with service delivery by

the Municipality, notwithstanding the challenges they experienced in their

respective areas, stated the Acting Executive Director : Human Settlements.

He informed the meeting that the Municipality had a seven-year programme in

terms of which areas for housing erection were identified as well as those areas

that were unsuitable for human settlement. The Acting Executive Director

declared that housing projects in respect of Ward 24 would commence in the

2014/15 financial year. He advised that, prior to the implementation of the

projects, a process had to be followed to obtain approval from the Department of

Environmental Affairs, called Environmental Impact Assessment (EIA). Once EIA

approval had been received, the erection of houses would commence on the land

identified.

With regard to RDP houses to which extensions had been added by their owners,

he said that such houses would not qualify for rectification in terms of the National

Human Settlements Policy in this regard.

Regarding the Korsten land claims, it was explained that once the verification

process of beneficiaries had been completed by the Province, the Municipality

would report thereon, probably at the second round of Public Participation

meetings to be held in April 2014.

The Acting Executive Director : Human Settlements further informed backyard

dwellers in particular that the municipality had a programme in place, aimed at

addressing the issue of the said inhabitants.

The Portfolio Councillor B Lobishe, responded to the complaint regarding the

closure of the Enkuthazweni Library, Kwazakhele, apologising for the fact that the

affected communities were not aware of the reasons which led to the closure.

She disclosed to the meeting that the Municipality was renting the building. When

the owner was informed of the burglary and theft taking place in and around the

building, he refused to strengthen security measures to curb the burglaries. The

Councillor stated that the security staff of the Municipality was stretched to the


138

limit to provide security services at the said building. However, a container would

be made available for use as a library at the Wolfson Stadium.

Regarding the request made by the volunteer, Cllr Lobishe applauded the man

and undertook to ensure that he received the required cleaning equipment such

as broom, rake and overall. She also stated that a photograph of him would be

taken whilst doing the volunteer work and be published in a municipal newsletter

to encourage other members of the community to do likewise in their

neighbourhood.

Responding to the allegation that certain municipal officials are selling municipal

work, she replied that a security member would be put in contact with the whistle-

blower so that tangible evidence could be obtained.

On the issue of learnerships, Cllr Lobishe confirmed that the money would be

increased and that the Municipality would partner with the private sector on skills

development.

With respect to the non-connection of electricity, in particular in areas declared

not suitable for human habitation, she appealed to affected residents to move out

of danger areas when requested to do so by the Municipality.

The above statement was echoed by the Chairperson at this meeting, who

emphasised that no responsible leadership in government would allow citizens to

build houses in areas/land declared to be inhabitable.

The Chairperson, Councillor Jodwana, further touched on the vandalism of parks,

appealing to the community to protect their property, as the parks were built for

them.

Lillian Ngoyi Sport Centre

It was raised as a concern that fees for the hiring of municipal halls were too high,

making it impossible for the members of the community to make use thereof. The

Councillors present at this meeting were requested to intervene in this regard.


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Day Hospital

In respect of the request for the upgrading of the Day Hospital, it was explained

that all municipal clinics had been provincialised, and they were the competency

of the Provincial Government, the Municipality had no control over such buildings,

but the matter would be taken up with the MEC for Health in the Province.

KwaZakhele Cemeteries

It was explained that technicalities had delayed the process re the upgrading

thereof.

Residents of Qolweni, Kwazakhele needed houses, as some had been staying in

their shacks since 1990.

Residents who were still using the bucket system were given the Municipal Call

Centre number 0800205050, of which they could report when buckets were not

removed/emptied on the routine day.

In respect of Ward 20, in particular Matthew Goniwe, it was confirmed that the

housing rectification in the area would be undertaken in the 2014/15 financial

year.

Regarding the issue of illegal dumping, it was explained that Peace Officers

would monitor this bad practice and that culprits would be issued with fines

payable to the Municipality.

The Chairperson thanked all present for their valued participation at this meeting and

wished them a safe journey back to their homes.




140

CHAMPION GALELA CLUSTER

(WARDS 30, 33 AND 36)

(Minutes of meeting held on Thursday, 27 February 2 014 at Henry Fazzie

Community Hall, at 18:00)

(Meeting held 27 February 2014)


Councillor M Tofile explained the proceedings and requested Councillor N Mhlobiso to

welcome all present.

2. INTRODUCTION OF COUNCILLORS

Councillor D Bruintjies introduced all Councillors and officials present.

3. ANNUAL REPORT 2012/13 PRESENTATION

Councillor V J Tutu (MPAC Chairperson) presented the 2012/13 Annual Report,

highlighting the success, challenges and a way forward in terms of the report.

4. COMMENTS/INPUTS PER WARD AND RESPONSES

The following issues were raised:

Ward 30

• Veeplaas (Nkanini Area) residents were told it was a flood plain area, but they did not

want to move.

• Sewer pipe leaking in Veeplaas Community Hall and the adjacent big tree: criminals

hide behind it and take drugs.

• No follow-up on projects.

• Water leaking in Ben Street.


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• Lady from Cnr Ben and Hambakahle Streets complained that all other houses had

been built in their area but not hers.

• Need a dumping site in Veeplaas.

Ward 33

• Area K still without water, after 11 years.

• Contractors dumped heaps of soil at the school and the area was becoming a crime

hotspot.

• Huge water account bills after three days of being connected.

• Water account billing while not connected.

• Water losses reported, but the Call Centre officials took days to send assistance or

did not respond at all.

• Skills training programme was terminated halfway without consultation.

• Upgrading of sports field.

Wards 36

• No previous report on budgeted projects for 2012/13.

• Westville informal settlements area is without electrical connections.

• What happened to the R41 million that was set aside in 2012/13 for building and

rectification of houses?

• Kwa-Dwesi extension storm water drainage and clinic needed.

• Open space opposite Mnqabane Street, Kwa-Dwesi needs to be maintained.

• Backyard dwellers issues need to be addressed.

• Stopping preferential treatment when awarding tenders.

• Jobs for unemployed qualified youth.

• Councillors Bhungane and Mhlobiso are working against each other.

• Dumping in Mkaza Street, causing a problem with rat infestation.

5. RESPONSES

Councillor Lobishe indicated that Council was aware of the housing applications from

Wards 33 and 36 and that the matter was still with Provincial Housing. She further

assured the Wards 33 and 36 residents that the R41 Million that was budgeted for

building of houses and rectification was still available the beneficiaries needed to be


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relocated to a surveyed land, but some were refusing. She referred the matter of

incorrect water billing to the Ward Councillor and the Budget and Treasury officials.

Councillor Mfunda reported that Westville was under a private developer, reporting

directly to Province. He further indicated that they were planning to install electrical

communal poles and connect 10 houses per pole. Councillor Mfunda promised to visit

Kleinskool on 4 March 2014, with the Executive Mayor, Ward Councillor and

Infrastructure and Engineering officials.

6. VOTE OF THANKS

Councillor B Lobishe thanked the community for their participation in the meeting and

indicated that they would be back in April to present the Draft 2014/15 IDP and Budget.

The community was requested to complete the return slips at the back of the Executive

Summaries and return them to the Ward Councillor’s office.




143

CHAMPION GALELA CLUSTER

(WARDS 25, 26, 27 AND 28)

(Notes of meeting held on Thursday, 27 February 201 4 at Soweto Community Hall,

at 18:00)

PRESENT: Cllr F Desi (Chairperson)

Cllr S Hodi

Cllr M Vena

Cllr X Bisset

Cllr B Mafaya

Officials

Members of the public

The following challenges / issues were raised by th e various wards in attendance:

WARD 25

• Rectification of pre-1994 RDP houses.

• Future plans around Gap taps.

• Housing provision and relocation of backyard dwellers.

• Employment opportunities and training not just for the youth, but also people

between the ages of 35-40 years.

• Zwide Rent Office – to be converted into a proper multi-purpose community

centre (MPCC).

• Tarring and expansion of streets.

• SMME development and financial support.


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WARD 26

• Cluster approach towards public participation does not allow for all ward matters

to be addressed.

• Housing provision and relocation of backyard dwellers and people of flood-plains.

• Construction of Councillor's office on the identified piece of land.

• Housing rectification as a result of shabby workmanship and installation of

geysers not done on certain houses (claim that the project was phased out with

an erstwhile Mayor).

• Sewerage (burst pipes) and water leakages remain a challenge in the area.

Ward 27

• Resolution of Soweto housing challenges (title deeds).

• Provision of clinics with staff and medication for all kinds of diagnosis and

community health related issues.

• Completion and attachment/connection of toilets on recently rectified houses.

• SMME training and support (not merely the 30% allocation for local business on

big projects, as that was not helping communities.

• Provision of security for the MPCC.

• Illegal dumping (especially on the open space next to Chatty River - health

hazard).

• Alignment of IDP and Budget and the monitoring thereof.

• Repairing of potholes.

Ward 28

• Burst underground pipes and drain leakages.

• Provision of water in the Veeplaas area.

• Youth Information Centre: Library services/Internet Centre.

• EPWP Programme to address unemployment challenges in the area, especially

for the youth.

• Street lights in eNdulwini and Jijana areas.

• High crime rate and the unsustainable job provisions within the Metro was not

helping to reduce crime.


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• Leaking geysers

• Tarring of streets (Lumanyanweni streets had been left incomplete).

• Fencing of cemeteries and the allocation of caretakers.

• Relocation of communities from eNdulwini to sustainable human settlement

(habitable) areas.

Recommendations and way forward

• The Infrastructure and Engineering Directorate clearly stated that the gap taps

and narrow streets are an inheritance of the apartheid planning and not much

could be done in those areas, as the current roads made provision for servitudes

and not further expansion.

• The Municipality has a long-term SMME development programme aimed at

addressing the cited challenges.

• Sustainable jobs were needed in the area, as opposed to short-term jobs that

drove people to resort to crime once their income source has been interrupted.

• The tarring of roads and pothole repairs was something that the Municipality was

looking at and planned to address.

• The Municipality encouraged community members to report drainage issues and

leakages to the Councillor whilst the Municipality was addressing drainage

systems and the cleaning of canals.



146


(WARDS 23, 56, 58, 59 AND 60)

(Minutes of meeting held on Monday, 3 March 2014 at Raymond Mhlaba Sports

Centre, at 18:00)


Councillor V J Tutu welcomed and informed residents of the purpose of the meeting and

its objective.

Councillor A Mama then formally introduced deployed Councillors and welcomed all

officials and members of the community present.

2. PRESENTATION OF 2012/13 ANNUAL REPORT

Councillor VJ Tutu (Municipal Public Accounts Committee) briefly explained that the

Municipality, in terms of its governance function, was required to interact with local

communities when planning the IDP and Budget. The review processes therefore allow

the communities to make changes in the IDP and Budget, as their needs and priorities

change over time.

The following were noted as the key areas of review:

(a) Formation of Ward Committees.

(b) Rectification of old RDP houses.

(c) Provision of basic services (water and sanitation).

(d) Tarring of gravel roads.

(e) Acceleration of effective and efficient service delivery.

(f) Alignment of stakeholders’ priorities.

(g) Detection of water leaks.

(h) Elimination of illegal electricity connections.

(i) Improvement of parks, playgrounds and cemeteries.

(j) Filming and video youth cooperation.


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(k) Motherwell Urban Renewal Project (MURP).

(l) Assistance to the poor (ATTP).

(m) Integrated Public Transport System (IPTS)

3. PRESENTATION OF IDP AND BUDGET REVIEW

Councillor B Lobishe (Economic Development, Tourism and Agriculture) explained that

the principle of public participation was to listen to the concerns and proposals of the

Community and to take them back to the Council for consideration. She further

explained the purpose of IDP and the role it played in both the community and the

Municipality. She further explained the priorities in the IDP and how they were being

determined. She elaborated on the Ward-based plans, which leads to IDP and then to

Budget.


At this stage, Councillor F Frans invited questions from the audience on the Draft IDP,

Annual Report and Budget Review.

Comments and questions were as follows:

Ward 56

o Residents required relocation from informal settlements.

o Some houses with fractured walls and defective roofs and no geysers installed to

date.

Ward 58

o Concerns were raised about the bad taste of the water supplied to Motherwell.

o FET Colleges to be established for youth to promote job creation.

o HR transformation was not meeting its target.

o Illegal garbage dumping on footpaths.

o Water leaks taking too long to be repaired by the Municipality.

o Provision of schools and clinics following relocation to new areas.


148

o Monitoring of construction companies regarding completion of work.

o Clearing of bushes, to curb crime.

o Consideration of early pension fund.

o Increase in the number of waste collectors.

o Training Centre needed in area between Sports Centre and Shopping Centre.

Ward 59

o Required Budget to be more specific.

o An emerging golf club was requiring a golf course.

o 40-55 years retirement plans.

5. RESPONSE BY OFFICIALS

Officials from the Human Settlements and Infrastructure and Engineering Directorates

responded by confirming that they had taken note of all the complaints and compliments

that were tabled. They promised that when they returned to the community with the

Second Draft IDP/Budget, they would also present action plans to address the

complaints raised.

6. VOTE OF THANKS

Councillor F Frans thanked the communities for their participation.

7. CLOSURE

The meeting was closed at 20:30.



149

ZOLA NQINI CLUSTER

(WARDS 42, 43 AND 44)

(Notes of meeting held on Monday, 3 March 2014 at J eff Masemola Hall, at 18:00)

PRESENT: Cllr M Soul (Chairperson)

Cllr N M Booi

Officials


The following challenges / issues were raised by th e various ward community

members in attendance:

Ward 42

• Need for a Multi-purpose Community Centre (MPCC)

• Tarring of roads (47 streets)

• Sidewalks

• Provision of houses

• Rectification of defective houses

• Cleaning of dumping sites

• Correction of wrongly allocated sites

Ward 43

• Promotion of arts, culture and heritage

• Addressing high crime rate

• Relocation of service delivery offices to Uitenhage

• Rectification of houses

• Maintenance of existing infrastructure

• NYDA and Msobomvu must open satellite offices in Uitenhage


150

Ward 44

• Provision of houses

• Illegal dumping

• Clearing of dumping sites

It was recommended that all Ward Councillors be present at sessions to which their

wards had been invited.



151

ZOLA NQINI CLUSTER

(WARDS 45, 46 AND 47)

(Notes of meeting held on Monday, 3 March 2014 at B abs Madlakane Hall, at 18:00)

PRESENT: Cllr W Jikeka (Chairperson)

Cllr L Stemele

Cllr M Vaaltyn

Officials


The following challenges / issues were raised by th e various ward community

members in attendance:

WARD 45

• As ratepayers were expected to contribute towards the Operating and Capital

Budgets of the Municipality, the question was raised what the Municipality (in

monetary values) was giving back to communities.

• Aerial lighting/street lights are still needed within certain areas in the ward,

especially within the recently built housing area.

• Housing provision and relocation of backyard dwellers.

• Small farmers in the area were not receiving support and training from the

Municipality and infrastructure (roads and lighting) is a challenge within those

areas.

• There is dam in the area that floods when it rains, is dirty and a health hazard for

the community. What plans does the municipality have for those area.

• Tarring and expansion of streets.

• Mayoral member and Councillors were very silent on the Capital Budget plans for

the area (compared to the Minister of Finance, who stated that R3 trillion had been

reserved for a dam project in the North West, a bridge construction in Umlazi, etc).


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WARD 46

• People in the area were struggling with approvals and confirmations on the ATTP

Programme.

• Housing provision and relocation of backyard dwellers and people of flood plains.

• The IDP and annual report were very silent on sport, arts and cultural development.

A fully equipped, functional Multi-purpose or indoor sports centre was requested for

the area.

• The community raised concerns as to why their Ward Councillor (Ward 46) was not

in attendance at the meeting, regardless of whatever previous commitment, this

was a ward-based process that needed all relevant Councillors in attendance, as

important decisions and discussions on their area were being made.

• Sewerage (burst pipes) and water leakages remained a challenge in the area.

• A door-door housing compilation exercise was being undertaken and people were

told that in the absence of land for housing in the Uitenhage Kwanobuhle area, no

projects could be undertaken for people in those areas.

WARD 47

• Long overdue housing rectification programme in the area.

• Farmers in the Kruis River area needed assistance in terms of training and support

as well as roads leading to the area; when it rained, people struggled to access the

area.

• Community was not assisted at the local customer care centre (Labour Offices).

Staff was generally very rude and did not help or explain municipal processes to

communities, hence the community was not even able to access the ATTP relief

programme.

• Refuse was not being collected; and there were no roads or water and sewer

connections in the Show area; the government was doing nothing to assist that

area.


153

Recommendations and way forward:

• Residents not receiving help from local customer care centres regarding

accessing the ATTP should, through their Ward Councillor, write a letter to the

Budget and Treasury Directorate requesting intervention, speedy processing of

applications and educating communities on the ATTP programme.

• The Local Customer Care Centre (Labour offices in KwaNobuhle) needed urgent

intervention as the staff there offered no assistance to the community and the fact

that some matters were being referred to Port Elizabeth caused responses to be

delayed.

• The challenges around provision, budgeting and sponsorship for all sports (indoor

sports, dance and board games) were Metro-wide challenges that needed urgent

intervention.

• The tarring of roads had been prioritised by the Municipality. A number of

kilometres of road had been tarred last year and plans existed for this financial

year to be done in all three wards.

• The Municipality encouraged community members to report problems with

drainage and leakages to the Councillor, whilst the Municipality was finalising its

internal procurement processes for material to address leakages and training for

10 people per ward to fix leakages, drains and sewer problems in terms of the

EPWP Programme.



154


(WARDS 10, 11, 12, 13, 31 AND 32)

(Minutes of meeting held on Tuesday, 4 March 2014 a t Gelvandale Community

Hall, at 18:00)

PRESENT: Councillor B Naran (Convenor)

Councillor T Mafana

Councillor S Sauls

Councillor M von Buchenroder

Councillor P Naidoo

Councillor J Lawack

Councillor N du Plessis

Councillor M Fillis

INPUT BY THE PUBLIC

• Ward 13 – 7de Laan – The backyard dwellers had been issued with pink cards and

were enquiring when they would be allocated RDP houses.

• Little assistance for SMMEs to get contracts – a paving contract to the value of

R500 000 had been awarded, but contractor was still owed R250 000.

• Meeting venues must be closer to where people reside.

• Mr S Davids (Ward 13) enquired how the R100 000 discretionary fund of the Ward

Councillor had been spent.

• The MBDA was not assisting the Helenvale community, as only a small group was

benefiting from projects.

• The old block RDP houses were very small and not very practical.


155

• RDP houses in Ward 31 must be rectified.

• The Annual Report was not relevant any more, and the IDP and Budget to be made

available at Ward Councillor office beforehand so that residents could peruse it.

• Houses in Helenvale, Extension 5 to be rectified or rebuilt.

• The IDP should be approved and implemented sooner.

• Some old age persons earning marginally more than the maximum monthly income

should qualify for ATTP and should the Municipality should investigate if they could

be assisted.



156


(PORTION OF WARD 53)

(Minutes of meeting held on Wednesday, 5 March 2014 at Colchester Community

Hall, at 18:00)

PRESENT: Councillor B Lobishe (Convenor)

INPUT BY THE PUBLIC

• No stormwater drainage in streets, leading to flooding and potholes.

• Colchester area was being neglected in general and no real progress was made in

improving the area.

• Residents of the township were not allowed to utilise the public open spaces next to

the river or to fish in the river.

• The modular library and clinic were not open.

• No action or commitment to tar roads in the area.

• RDP houses to be rectified – two years of no action.

• Poor living conditions of some residents – need to assist them.

• General lack of infrastructure in the area.



157


(WARD 29, 34, 35, 37 AND 38)

(Notes of meeting held on Wednesday, 5 March 2014 a t George Botha Sport

Centre, at 18:00)

PRESENT: Cllr V J Tutu (Chairperson)

Cllr S Marlow

Cllr S Smith

Cllr L Troon

Cllr J Arends

Cllr H Van Staaden

Officials


Opening and introduction

Cllr Marlow opened and welcome everyone present in the meeting; no apologies had

been reported.

Cllr J. Tutu highlighted the purpose and the objectives of the meeting and further

explained the process to be followed.

Cllr J. Tutu presented the 2012/13 Annual Report. He discussed the progress and

challenges around the issue of housing, explaining that the Municipality was applying for

Level 3 accreditation and that the budget for building houses would be coming from

National government, and no longer Province once Level 3 accreditation was received.

Officials and Councillors responded to the various issues and concerns expressed by

the community members.


158

The following challenges/issues were raised by the community members from

various wards:

Ward 37

• Illegal dumping

• Rectification of houses

• Relocation

Ward 38

• Clinic

• Drainage

• Repair of electricity boxes

• Crime

Communities also reported issues such as the rubble left by building contractors in an

open field, the need for timeous notices on electricity interruption, the monitoring of

projects in the Ward, and the construction of houses in Timothy Valley.

Cllr Tutu indicated that members of the community could write down their priorities and

submit them to the office of their Councillor, who would then submit the identified Ward

priorities to the IDP Office.



159


(WARD 40)

(Notes of meeting held on Thursday, 6 March 2014 at Kuyga Community Hall, at

12:00)

PRESENT: Cllr V J Tutu (Chairperson)

Officials


The following challenges/issues were raised by the various wards in attendance:

• Illegal dumping remained a challenge.

• Most people in informal settlements were without electricity, hence the number of

illegal electricity connections.

• Many people in the area were skilled, with a Matric qualification but still could not

find/access jobs.

• Housing remained an issue in the area.

• High unemployment rate prevailed (especially among youth).

• This was a highly densified informal settlement area, and land had been identified

for relocation, but residents had not yet moved to serviced sites.

• Poorly built and defected houses in the area were not being repaired, as

promised by several officials and even Ministers that had visited the area.

• Land needed to be identified for cemeteries.

• No sport development was occurring in the area; teams that needed to train had

no facilities and had to pay for using sport facilities in the area.

• High crime rate.

• The question was raised by people’s water and electricity was still being

disconnected despite the existence of the ATTP.

• Housing rectification was needed in the Ndlovini area.

• Bursaries for young people in the area were never announced to the people of

Kuyga.


160

• There was a library in the area, but it has not yet been opened; the community

was in high need of a library.

• EPWP was not covering Kuyga.

• Youth training on agriculture was needed in the area, as there was plenty of land

for farming.

• Tarring of roads in Rocklands area and overflowing sewage remained problems

in the area.

• A Youth Information Centre should be established to service Kuyga.

Recommendations and way forward:

• It is important that Councillors attend public meetings and also take responsibility

for submitting the challenges and programmes needed for the development of

their communities in assisting the Municipality in ensuring that communities are

serviced and their concerns and complaints are fast-tracked.

• The Chairperson will invite EPWP unit to visit the area and ensure that a

programme is rolled out in the Kuyga area.

• The housing rectification and delivery units must visit the area to present the

programmes they have, such as the Backyarders Dwellers programme that will

employ people from the area, as well as the plans for Kuyga and Rocklands and

any other challenges that they might have.

• The challenges around the provision of and budgeting and sponsorship for all

sports (indoor sports, dance and board games) are Metro-wide challenges that

need urgent intervention.

• The tarring of roads has been prioritised by the Municipality.

• A youth information centre and a presentation by the Corporate Services

Directorate on the learnerships and bursaries offered by the Municipality are

needed in the area. This will assist in providing training and first-hand information

to the community.



161


(WARDS 1 AND 2)

(Minutes of meeting held on Thursday, 6 March 2014 at Walmer Town Hall

Community Hall, at 18:00)

PRESENT: Councillor T Ngcolomba (Deputy Executive Mayor)

Councillor D Biddulph

Councillor A Dashwood


Councillor A B Gibbon

Councillor D A Hayselden

Councillor M Steyn


Councillor M Harning welcomed all present at the meeting.

2. 2012/13 ANNUAL REPORT AND 2014/15 IDP AND BUDGET REVIEW

Summaries of the above documents were circulated to the meeting and the community

was requested to raise any concerns/inputs in this regard.

3. CONCERNS/INPUTS RAISED BY COMMUNITY

The following concerns/questions/points of clarity were raised by various members of

the community:

- A lane provided in Circular Drive between Carrington Road and Willow Road has

since been closed, because it was said that the road was not designed for heavy-

duty vehicles such as trucks; the request was that the lane be reopened.


162

- The process followed to prioritise the budget claims submitted by various wards.

- Ward 1 submitted a budget request for the provision of speed humps without

attaching a figure thereto. It was expected that the Directorate: Infrastructure and

Engineering would submit the required costs. This request is not reflected in the

Budget.

- A representative from Ward 1 requested that consideration be given to building

cycle tracks for cyclists, based on the fact that the area was frequently utilised by

cyclists particularly during the Iron Man Competition. Road usage by cyclists had

a negative impact on both the traffic as well as residents.

- A representative from an organ of civil society raised the following: (i) A request

was made for businesses to align their programmes to the IDP; (ii) In respect of

the Annual Report, clarity was requested on the figures depicted in the ‘actual’

and ‘target’ columns (iii) Concern was expressed in respect of the qualified audit

opinion and an explanation regarding same was requested.

- A Ward 3 resident requested that specific details be included in reports to enable

members of the communities to assist in terms of accountability. How many

traffic officials were allocated to a specific area was cited as an example in this

regard. In respect of the report that appeared in the media regarding car hire, an

explanation was requested on who authorised such expenditure. Concern was

expressed that in spite of the shortage of funds for various service delivery

matters, expenditure on car hire was exorbitant.

- Concern was expressed about the state of the Metro particularly in terms of

cleanliness, illegal dumping and the recycling of waste.

- It was stated that the water drainage systems were poor particularly during rainy

periods. A request was made to rectify same.

- Concern was expressed about safety and the high rate of road accidents on

Villiers Road. It was stated that, on average, five children (pedestrians) were

involved in accidents per month.


163

- Residents from Laubscher Park expressed their concern in respect of the

reckless and inconsiderate manner that taxis operated in Walmer Main Road (in

the vicinity of Walmer Park shopping Centre) and requested that traffic officials be

assigned to monitor same.

- Concern was expressed in respect of the budget being amended after it was

approved, simply to accommodate unbudgeted for items, at the expense of

service delivery.

- A general concern was expressed about the fact that English was the medium in

which public participation meetings were conducted as well as the absence of the

Councillor who was to have presented the Annual Report. A request was made

that there should be consequences for said Councillor, as well as consequences

for other non-compliance matters.

The Deputy Executive Mayor, with the assistance of various officials and Councillors,

responded to the above concerns/questions. He further advised that follow-up reports

and/or queries would and should be tabled at meetings convened by Councillors in their

respective wards.



Documents

FINAL DRAFT OVERSIGHT REPORT 17 March 2014nelsonmandelabay.gov.za/datarepository/documents/elH98...Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report 2