PRESENTATION TO SELECT COMMITTEE ON PUBLIC SERVICES HON.NM MOKOENA MEC OF COGTA 26 MAY 2010

PRESENTATION TO SELECT COMMITTEE ON PUBLIC SERVICES

HON.NM MOKOENAMEC OF COGTA

26 MAY 2010

MINISTERIAL TASK TEAM REPORT

Minister of COGTA conducted an assessment on the state of municipalities in the country.

All 18 Local municipalities and the three districts municipalities in the Province participated in the assessment

This assessment followed concerns such as:• Protests and on-going negative reports on local governments• Concerns by Parliament on state of local governments• Grievances raised by communities• Allegations of fraud and corruption• Slow progress on service delivery

Assessments were basically on the following key areas:• Governance• Financial Management• Service Delivery and Infrastructure• Local Economic Development and spatial patterns

MAKING LOCAL GOVERNMENT EVERYBODY’S BUSINESS 2

Governance • Ineffective public participation and communication, through ward committees and community

development workers (CDW’s);• Lack and poor implementation of Performance Management Systems;• The lack of monitoring systems for implementation of council resolutions has impacted

negatively on good governance and the relationship between the council and community;• Council is not able to produce the oversight reports and Section 46 reports;• Dysfunctional municipal IGR structures;• High vacancy rate in most municipality Financial Management• The Supply Chain Management regulations and policies are not adhered;• Limited revenue base, non implementation of revenue enhancement initiatives contributes

towards poor financial viability resulting in grant reliance;• Incorrect data in the billing system contributes to the increasing consumer debt and the inability

to collect revenue;• Internal Audit and Risk Management structures are not functional and in others not in existence;• Inefficient and outdated financial management systems;• Municipalities are facing challenges with the implementation of the Municipal Property Rates Act;• Institutionalised irregularities and corruption;

FINDINGS


FINDINGS cont…

Service Delivery and Infrastructure • Insufficient funds to eradicate infrastructure backlogs,• Incomplete infrastructure projects e.g. houses, roads, electricity and water;• Poor workmanship and material utilised by the contractors affects sustainability of

qualitative services;• The non-availability of land for township development especially for evicted farm dwellers

is impacting negatively on service delivery, Dipaleseng, Govan Mbeki,• Poor Spatial Planning and population growth result in overload of basic services eg water,

electricity; • Lack of alignment between expenditure on MIG funds against actual implementation of

projects;

Local Economic Development • Participation and involvement of key stakeholders in LED initiatives is not embraced by

municipalities, for example, Organised business, Traditional Authorities and CBO’s;• LED strategies and implementation plans have not been formulated and in municipalities

where it exists it is not implemented;• The development and implementation of strategic plans by the three spheres of

government aimed at stimulating economic development are not coordinated;• Though LED units exists in some municipalities, they are not functional due to lack

capacity and resources;


STATUS OF MUNICIPALITIES


VACANCY RATE WITHIN MUNICIPALITIES

Municipality

Number of Section 57 Managers:

Posts FilledSuspended

% Filled

Performance

Agreements signed

Gender

Male Female

Ehlanzeni District Municipality 7 7 100% 7 5 2

Mbombela 6 5 83% 5 4 1

Thaba Chweu 4 3 75% 4 3 1

Nkomazi 6 5 83% 5 3 2

Umjindi 6 4 67% 4 2 2

Bushbuckridge 7 7 100% 7 5 2

ADEQUATE CAPACITY TO DELIVER SERVICES


ADEQUATE CAPACITY TO DELIVER SERVICES


FUNCTIONALITY OF WARD COMMITTEES

MUNICIPALITY WARD FUNCTIONALITY NON FUNCTIONAL WARDS

EHLANZENI DISTRICT

Bushbuckridge 34 33 01 ( 20)

Mbombela 36 23 13 (1,2,4,5,6,8,10,15, 16, 17,21,22 & 29)

Nkomazi 30 30 00

TOTAL 119 93 14

TRAINING

MUNICIPALITY

Capacity Development (Training Provided)

Change management

ELDP

Training on IDP for

Municipal Planners

SCM (Cllrs)

MFMA(Cllrs)

MLDP

EHLANZENI DISTRICT

4 0 3 5 1 4

MBOMBELA 1 8 2 4 11 7

NKOMAZI 0 7 3 4 12 5


MUNICIPAL FINANCIAL VIABILITY AND MANAGEMENT

1. Grant Dependency

2. Municipal Systems Improvement Grant (MSIG)

3. Audit Outcomes

4. Outstanding Debtors


GRANT DEPENDENCY

2007-2008 2008-2009MUNICIPALITY Government

Grants and Subsidies

Actual Revenue collection

Total Revenue

Government Grants and Subsidies

Own revenue Total Revenue

EHLANZENI DC R 112,757,373 R 22,346,916 R 135,104,289 R 134,200,323 R 20,811,702 R 155,012,025 83% 17% 100% 87% 13% 100%

Mbombela R 489,632,674 R 513,372,275 R 1,003,004,949 R 771,364,226 R 624,636,451 R 1,396,000,677 49% 51% 100% 55% 45% 100%

Nkomazi R 197,306,257 R 54,985,840 R 252,292,097 R 260,779,731 R 70,904,390 R 331,684,121 78% 22% 100% 79% 21% 100%


MUNICIPAL SYSTEMS IMPROVEMENT GRANT

MUNICIPALITYALLOCATION 09/10 EXPENDITURE BALANCE %

EHLANZENI DISTRICT R 735,000 R 76,000 R 659,000 10.34%

MBOMBELA R 1,300,000 R 63,960 R 1,236,040 5%

NKOMAZI R 735,000 R 0 R 735,000 0%

AFS – AUDIT OUTCOMES

MUNICIPALITY AUDIT OUTCOME 06/07

AUDIT OUTCOME 07/08

AUDIT OUTCOME 08/09

Mbombela Disclaimer Qualified Qualified

Nkomazi Qualified Disclaimer Qualified

Ehlanzeni Qualified Unqualified Unqualified

Umjindi Unqualified Unqualified Qualified

Bushbuckridge Qualified Qualified Unqualified


Outstanding DEBT

AS AT 31 DECEMBER 2009MUNICIPALITIES DebtorsEhlanzeni DCMbombela 354,330,483 Nkomazi 30,905,419 UmjindiBushbuckridgeThaba Chweu 180, 000, 000

BASIC SERVICES AND INFRASTRUCTURE

1. IDP

2. LED

3. Municipal Infrastructure Grant (MIG)

4. Free Basic Services

5. Backlogs per municipality priority services


LED STATUS IN MUNICIPALITIES EHLANZENI DISTRICT

Municipality LED Strategy

LED Staff LED Plans/Projects Stakeholder Involvement/structures

Ehlanzeni DM Adopted 2009

Full LED Directorate

1. Bushbuckridge information center

2. Grading of formal accommodation

3. Tonga pre-cast4. Malelane Kruger Junction

LED Advisoury Council

Mbombela LM Adopted 2007


1. 2010 Mbombela staduim2. Ilanga mall3. Tourism Routes

Development

LED forum

Nkomazi LM Currently reviewing


1. Mangweni cultural village2. Masibekela Dam3. Nkomazi Poultry4. Lusito Bakery5. Mangweni Manufacturing

LED Forum



INTEGRATED DEVELOPMENT PLANNING

Municipality Status of 2010/11 review Date of adoption Resolution no

Ehlanzeni District Draft IDP tabled in Council 30 June 2010

Nkomazi Draft IDP tabled in Council 24 May 2010

Mbombela Draft IDP tabled in Council 08 June 2010

Municipality

Original Allocation

(R'000)

Roll- Overs

(Stopped Funds) (R'000)

Adjusted Allocation (R'000)

Transferred To Date (R'000)

% Transferred To Date

Actual Expenditure To Date (R'000)

% Expenditure From The Transferred

Amount

% Expenditure From The

Total Allocation

Amount Not Yet Spent (R'000)

Mbombela 108.68 27.41 136.09 136.09 100% 37.55 28% 28% 98.54Nkomazi 78.28 0.00 78.28 78.23 100% 60.14 77% 77% 18.14Ehlanzeni 4.82 0.00 4.82 4.82 100% 4.82 100% 100% 0.00


MIG EXPENDITURE UP TO MARCH 2010

BACKLOGS PER MUNICIPALITY PRIORITY SERVICES

MunicipalityTotal

Households

Households without access to Households in informal

dwellingsWater SanitationElectricity for Heating

Refuse Removal

% % % % %

Mbombela 137 353 5.6% 51.5% 27.5% 70.8% 9.8%

Nkomazi 78 254 6.8% 54.8% 53.4% 68.5% 1.4%


Local Government Summit was convened during February 2010

Developed and Adopted turn around strategy in line with Local

Government 10 point plan.

Assisted municipalities to develop Municipal specific turn around

strategy

Strategies adopted and approved by Councils for implementation

Main areas of focus:

•Governance

•Financial Management

•Service Delivery and Infrastructure

•Public Participation and Community development

•LED, IDP’s and Spatial development.

MUNICIPAL TURN AROUND STRATEGY

LOCAL GOVERNMENT TEN POINT PLAN

1. Improve the quantity and quality of municipal basic services to the people in the areas of access to water, sanitation, electricity, waste management, roads and disaster management.

2. Enhance municipal contribution to job creation and sustainable livelihoods through local economic development( LED).

3. Ensure the development and adoption of reliable and credible IDPs4. Deepen democracy through a refined ward committee model5. Build and strengthen the administrative, institutional and financial

capabilities of municipalities. 6. Create a single window of coordination for support, monitoring and

intervention in municipalities. 7. Uproot fraud, corruption, nepotism and all forms of maladministration

affecting local government.8. Develop a coherent and cohesive system of governance and a more

equitable intergovernmental fiscal system9. Develop and strengthen a politically and administratively stable system

of municipalities.10. Restore the institutional integrity of municipalities.


INSTITUTIONAL ARRANGEMENTS

• During the LG Summit, clear responsibilities were

agreed upon between municipalities and

relevant sector departments to ensure smooth

implementation

• Regular reports will be submitted on progress to

IGR structures and Cabinet


SUPPORT PROVIDED NKOMAZI

• In July 2009, an amount of R776 922.67 was allocated to drill and rehabilitate boreholes in Nkomazi and Umjindi municipalities.

• In Nkomazi municipality, the following milestones have been achieved:• At Shiyalongubo, a new electrical pump has been installed as a long term

solution to the challenge of the area. The project is 95% complete and it is benefiting 20 households and a population of around 200 people.

• At KaMashayani, a new electrical pump has been erected and a water tank and stand installed as a long term solution to the water challenge of that area. The project is 95% complete and stands to benefit 15 households or about 100 people. Eskom electrical connection is still outstanding.

• At Louieville 1, an old electrical pump has been refurbished and a new water tank and stand erected as a long term solution to the water challenge in that area. Water samples have been submitted to the laboratory and the quality has been declared fit for human consumption. The project is 100% complete and it is benefitting 50 households and ready for transfer to the municipality.

• At Louieville 2, an old electrical pump and pipe work to fill water tankers has been concluded. The project is providing a long term solution to the beneficiaries and is 100% complete.


CHOLERA INTERVENTION

The following interventions was done under the cholera intervention programme budget by Department of Water Affairs

Description Quantity

• Rainwater harvesting tanks 300 Jojo tanks

•Boreholes 20

•Package plants

• 2x Louisville each plant with a capacity of 0.5Ml/d

• 1x Ntunda / Skhwahlane capacity 2Ml/d

•The boreholes and rain water harvesting tanks were installed in various areas within Nkomazi L.M.

•There is still another package plant to be installed at Block B with a capacity of 2Ml/d.


HUMAN SETTLEMENTS - NKOMAZI

Area Ward Units Subsidy type

2010/2011

2011/2012

2012/2013

2013/2014

2014/2015

Komatipoort and farms

Ward 06

250 Individual and Project Linked

150 - 100 - -

Malelane & nearby farms

Ward 30

250 Project Linked

- 150 - 100 -

Tonga and Kazibokwane

Ward 02

250 Individual 250 - - - -

Mgobodzi part of Magudu

Ward 15

350 Rural - - 200 150 -

Middelplaas & Schulzendal

Ward 25

250 Rural 100 150 - - -

Madadeni & Sibange

Ward 16

250 Rural and Individual

- 150 100 - -

Mbuzini Ward 13

250 PHP and Rural

- - - 100 150


HUMAN SETTLEMENTS - NKOMAZI

Area Ward Units Subsidy type

2010/2011

2011/2012

2012/2013

2013/2014

2014/2015

Mbangwane, Mananga

Ward 12

250 PHP, Rural and Individual

- - 150 100 -

Part Mangweni & Esibayeni

Ward 05

150 Rural 150 - - - -

Masibekela, Mthatha & Vukuzenzele

Ward 14

150 PHP and Rural

150 - - - -

Magogeni & Gomora

Ward 22

250 PHP and Rural

- 250 - - -

Ntunda, part Mzinti & Skhwahlane

Ward 17

250 Rural - - - 100 150

Total 2,900 800 700 550 500 300


2010 READINESS

• Progress report on 24 ProjectsStatus Quo 24.05.2010


1. Stadium

2. Stadium precinct & sub-projects

3. Transport infrastructure

4. Training Venues & Sub-projects

5. Fan Parks & public viewing areas

6. Supporting infrastructure & utilities

7. Telecommunication & broadcast infrastructure and IBC

8. Accommodation

9. Tourism

10. Marketing, communication, signage & sub-projects

11. City beautification

12. Public Health & sub-projects

13. Disaster management & sub-projects

14. FIFA events, match planning & sub-projects

15. Safety, Security, Justice, municipal by-laws

16. Volunteers (City & LOC hired)

17. Environmental Rehabilitation

18. Waste management

19. Business closure during event

20. Protocol & port of entry matters

21. Government Communication, hosting strategy, legacy & cultural activities

22. Project support (Procurement, ..)

23. Overall coordination & reporting

24. 2010 FIFA World Cup Finance


PROGRESS TO DATE

• Stadium - All infrastructure is complete and two test events successfully held. Stadium to be handed over to FIFA on 26 May, 2010.

• Roads – All major road infrastructure now complete and tested.

• Transport – Park and Rides tested during “dry run” events. All plans submitted and approved by NDOT.

• Fan Park – All infrastructure complete and operator in place.

• Training Venues – Two training venues have been identified and refurbished for legacy purposes. Pitches at both venue being nurtured to ensure compliance with FIFA specifications.

• Public Viewing Areas – There will be three Government sponsored PVA’s - one in each District and there will be three commercial PVA’s (two by Boxer and one by Xstrata Mine). Additional commercial PVA’s are being explored.

• Team Basecamp – The Chilean Team will be based in the Province and their facilities are being readied to FIFA requirements. An additional field has been renovated at Province’s expense, which will also provide legacy post the 2010 event.


PROGRESS TO DATE CONT…

• Marketing/Branding/City Beautification – The Host City has been branded. Football Friday and Fly the Flag campaigns are continuing throughout the Province. Road markings being re-done and flora areas spruced up.

• Health – Renovations for 2010 have been completed and systems have been tested.

• Disaster Management – The Disaster Management Centre has been complete and handed over to the Host City. The Centre was operational for the two test events.

• Safety and Security – The Provincial Joint Operations Centre (JOC) is fully operational and functional. Simulation exercises have been held and the JOC was operational in the test events.

• Volunteers – All volunteers selected and trained.

• International Relations – Province is establishing fan embassies for visiting countries that will be playing at the Mbombela Stadium.


WAY FORWARD

• Establish a rapid response unit at the Provincial and District level- create a hands on support (planning, infrastructure, risk management, stakeholder management and financial/ technical management)

• Mbombela and Nkomazi to be recipients of the Provincial Financial Turnaround intervention in areas of assets management, SCM review, financial systems, debt collection and revenue enhancement.

• Ensuring the implementation of the Water Summit resolutions with respect to water security, infrastructure development and management, quick-wins with respect to drilling and equipping boreholes and implementation of rainwater harvesting measures and curbing water loss.

• Support rural economic development through bankable LED projects and resuscitating defunct LED projects including industrial parks


THANK YOU


Documents

PRESENTATION TO SELECT COMMITTEE ON PUBLIC SERVICES HON.NM MOKOENA MEC OF COGTA 26 MAY 2010