STATE OF THE MUNICIPALITY ADDRESS€¦ · State of the Municipality Address as delivered by the Executive ... The Honourable Speaker; ... oath of office following the local government

STATE OF THE MUNICIPAL ADDRESS 2017 Page 1

MNQUMA LOCAL MUNICIPALITY

STATE OF THE MUNICIPALITY ADDRESS

23rd MAY 2017


State of the Municipality Address as delivered by the Executive Mayor

of Mnquma Local Municipality, Councillor Thobeka Bikitsha at the

Msobomvu Community Hall on the 23rd May 2017 for the adoption of

the 2017-2022 Integrated Development Plan (IDP) and 2017-2020

Medium Term Revenue Expenditure Framework (MTREF).

The Honourable Speaker;

His Royal Majesty King Zwelonke Sigcau.

The Chief Whip;

Members of the Mayoral Committee;

Councillors;

Traditional leaders;

The Acting Municipal Manager;

Directors;

Guests;

Delegates from Sector Departments;

The Business Community;

Leaders of Political Parties;

Ward Committee Members;

Community Development Workers;

Members from Cultural groups;

Members of the public;

and Members of the media present.

All protocol observed.

Good morning Ladies and Gentlemen

Honourable Speaker; allow me to table 2017-2022 Integrated Development Plan (IDP) and the 2017-

2020 Medium Term Revenue Expenditure Framework (MTREF), on behalf of the Mnquma Council.

Honourable Speaker and fellow councilors, you will recall that it is just over nine months since we took the

oath of office following the local government elections in August last year. You will all recall that we took

the oath of office guided by the Ruling Party’s Manifesto.


Amongst other commitments, the Ruling Party has made the following pledges:

- “Expanding the electrification program to the remaining areas and rolling out solar energy in

certain areas.

- Enhancing the capacity of municipalities to accelerate the upgrading and integration of informal

settlements.

- Ensuring that tarred roads are maintained and gravel roads are graded.

- Intensifying cleaning campaigns in towns and cities and increasing the number of households

with access to refuse collection.

- Strengthening public participation to ensure that all communities are part of municipal programs

and activities.

- Strengthening local partnerships with the private sector, trade unions and community-based

organizations to enhance service delivery.

- Upscaling Co-operatives to mainstream economic development.

- Requiring municipalities to approve developments that integrate communities and bring

developmental facilities to these communities.”

As our term of office began in August 2016, it is critical to take a few steps back to allow ourselves to

reflect and measure progress against the promises that we made as guided by ruling party’s manifesto.

Honourable Speaker; while the ruling party’s manifesto guides us to strengthen public participation as

part of the agenda for this term of office, we have held consultations with communities through the

Mayoral Imbizos, Community Outreach Programs, IDP/PMS and Budget Representative Forums, MPAC

Roadshows, IDP/PMS and Budget Roadshows. This is all part of advancing people’s power to determine

their own destinies and to meet their expectations.

Some of the societal challenges raised by communities are:

- Roads Infrastructure

- Water and Sanitation

- Electricity

- Health Services

- Support of Small, Medium and Macro Enterprises (SMME’s)

- The high rate of unemployment which contributes to high levels of poverty


Honourable Speaker, we are committed to respond to these challenges working hand in glove with the

various sector departments, the Amathole District Municipality and parastatals.

After all, history will judge us for what we are going to do in the next five years.

Our commitment is informed by the 2016 Ruling Party’s Local Government Elections Manifesto, the South

African blueprint for development which is the Vision 2030 National Development Plan, the 2017 State of

the Nation Address which was delivered by the ANC and South African president, Comrade JACOB

ZUMA, the 2017 State of the Provincial Address by Eastern Cape Premier PHUMULO Masualle and the

Mnquma Municipality’s Vision of being a developmental municipality that is self-sustainable to empower

it’s citizens socially, economically and legislatively to ensure sustainable livelihoods.

In his 2017 State of the Nation Address, the President of the Republic of South Africa, His Excellency

Jacob Zuma indicated key focus areas of the country such as industrialisation, mining and beneficiation,

agriculture and agro-processing, renewable energy, small medium and micro enterprises (SMMEs),

managing workplace conflict, attracting investment and growing the oceans economy and tourism

development.

Mnquma Local Municipality is further committed towards implementing Masiphathisane, which is

commonly known as the War Rooms and is a new flagship model of integrating service delivery in the

Eastern Cape, which was launched by our Eastern Cape Premier PHUMULO Masualle.

SIMANXADA-NXADA!

The Masiphathisane model aims to achieve the following:

• Integrate all government field workers;

• Establish a centralized point of contact in each ward;

• Improve responsiveness to the needs of people on the ground;

• Broaden community participation and ensure that people become active participants in

matters of their own development;

• Help communities identify their own resources which could be leveraged in speeding up

service delivery, that is the A B C D approach;

• Facilitate communication, co-ordination, integration, joint planning and implementation

and;

• Involve various stakeholders within the wards, including sector departments to enhance

co-ordination, co-operation and inter-dependence.


Somlomo weBhunga, kule ntetho yekhansile yokuqala yobume bukaMasipala, andifuni

kugxininisa nje kwi Manifesto, kodwa ndiquka nombono ka-Masipala othi:

“UMasipala wophuhliso oluzinzileyo, oxhobisa abantu ngokwasekuhlaleni, kuqoqosho nango

kwasemthetweni ukuze kuqinisekiswe impiliswano entle”.

Ndifuna ukugxininisa kwiinjongo eziphambili zikamasipala, iinjongo zokwakha uMasipala we

Demokrasi, okhuthaza abantu bathabathe inxaxheba kuphuhliso lwabo, ozisa iinkonzo

ezingundoqo eluntwini.

Yiyo lonto ndiza kudandalazisa ingxelo malunga nomsebenzi owenziwe yikansile ukusukela

kwinyanga yeThupha (August) 2016, kunye nesicwangciso-nkqubo seminyaka emihlanu, nohlahlo

lwabiwo-mali lweminyaka emithathu. (2017/2022 IDP and 2017/2020 MTREF).

Distinguished guests, the council inherited a total budget of R337 million which was approved by the

previous council in May 2016 before the voters voted for a change in political leadership.

Somlomo Webhunga, ndivumele ndidandalazise ingxelo ukusukela ngenyanga yeThupha (August)

2016 apho siqale ukusebenzisa uhlahlo lwabiwo mali ka 2016/2017, unyaka wokuqala weli bhunga

ndili khokheleyo.

Imali ezizigidi ezingamashumi amahlanu anesithoba namakhulu asixhenxe amawaka (R59.7

million) yabekelwa bucala ukwakha iindlela ezibizwa njenge access roads, ibala lezemidlalo, iholo

loluntu kwakunye neTaxi Rank kwidolophu yaku Centane.

Ngovuyo kwakunye nochulumanco, ndivumele Somlomo weBhunga obekekileyo ndixelele le

nginginya ilapha ukuba le migaqo ilandelayo, kunye neholo, zigqityiwe:

Mazizini to Ngozana Access Road in Ward 9

Roma to Sijila Access Road in Ward 15

and the Mpukane Community Hall in Ward 22

In total, we have constructed 17 km of roads, re-gravelled 25 Km and bladed 392 Km of access roads.


The following 20 Km of access roads, a Sports field and the Taxi Rank are under construction:

Mazizini to Mthawelanga Access Road in Ward 21

Mtsotsweni Access Road in Ward 31

Phase 2 of Street Surfacing in Ward 30 ku Centane

Mahlubini Access Road in Ward 11

Mthwaku to Nyumaka Access Road in Ward 29

Centane Taxi Rank in Ward 30

Teko- Kona Sport Field in Ward 23

In an endeavour to keep infrastructure operational and deliver services to our people, the Department of

Public Works has also maintained 4 130 KM of proclaimed roads in the following areas:

Ward 18, Ward 17, Ward 20, Ward 13, Ward 14, Ward 11, Ward 23, Ward 28, and Ward 24

which are in the following areas:

Centuli, Ngcizela, Centane to Willowvale, Mnyameni, Esinqumeni, Thafalofefe, Butterworth to

Centane, Centane to Monya, Bawa and Ndabakazi to Tsomo.

Working together, the National Department of Public Works and the South African National Defence

Force have also invested in building our infrastructure and improving the safety of our people through the

construction of Bailey Bridges in Bawa, in Zazulwana and Mazizini Villages.

As the Executive Mayor of Mnquma Local Municipality, I recently hosted a delegation led by our new

national minister of Public Works, Comrade Nkosinathi Nhleko who officially unveiled a memorial stone

which was erected in honour of the 10 Bawa residents who tragically lost their lives after drowning when

their car attempted to cross a flooded bridge near Bawa in 1993.

The elevated Bailey bridges, built by our soldiers in the SANDF, will be officially handed over to the

communities by president Zuma at a date yet to be announced.

The state-of-the-art Butterworth Swimming Pool is 99% complete with only final touches being made. This

modern day recreational facility will be handed over to community members in a very short time to come.

Somlomo weBhunga, izigidi ezintlanu (R5M) ebezibekelwe bucala kunyaka mali ka 2016/2017;

zisetyensiswe ukuze kuxhamle imizi engamakhulu amabini (200 huseholds) ekufumaneni umbane.

Le nkonzo yokusa umbane eluntwini siyenza sibambisene no Eskom osele efakele umbane

kwimizi engamawaka amabini, makhulu amabini aneshumi elinesibhozo (2280), ukusukela

ngenyanga kaTshazimpunzi kulo nyaka uphelileyo (2016).


In an effort to promote and achieve spatial and social integration, Council has approved the Land Use

Management By-Law to regulate all land use applications. Furthermore, Council has also approved the

sub-division of ERF NO 4934 in Ibika Township for residential use.

Honourable Speaker; it is important to reflect on the achievements on Human Settlements such as:

- The construction of 282 units in Butterworth Extension 14 and the construction of 376 units at

Siyanda New Rest.

These housing units will be handed over to the beneficiaries very soon.

The National Development Plan (NDP) is a blue-print for all developmental initiatives that we must follow

towards 2030. Using the NDP as a guiding tool, our government wants to create 11 million jobs by 2030

through:

- Creating an environment for sustainable employment opportunities and inclusive economic

growth and

- Promoting employment in labour-absorbing industries

Honourable Speaker,

I wish to place on record that working with sector departments Mnquma Local Municipality has created

2 499 job opportunities (amathuba emisebenzi) through implementation of the following programmes:

- 80 job opportunities created through the Expanded Public Works Program (EPWP) in Solid

Waste Management

- 28 job opportunities created through the EPWP for Storm Water Drainage and Cleaning

- 1068 job opportunities created through Community Works Program

- 1 200 job opportunities created through Working for Water, that is the Removal of Alien Species

- 28 jobs created through Working for the Coast program; the Coastal Cleaning and Rehabilitation

programme.

- 78 Jobs created through Solid Waste Co-operatives which are funded by Mnquma Local

Municipality.

- 17 Jobs created for Road Rangers.

Working together, indeed we can do more.


Mnquma Local Municipality in partnerships with the Department of Social Development, the Department

of Rural Development and Agrarian Reform have offered funding to youth, women-led co-operatives,

projects fighting against alcohol and substance abuse, Old Age Homes, organizations that protect women

and children, HIV/AIDS and community development projects. This is part of ensuring better life for all.

We strongly condemn the brutal killings of women and children which have sent shockwaves throughout

the country over the past few days.

Honourable Speaker; the 2017/2022 Integrated Development Plan and 2017/2020 Medium Term

Revenue Expenditure Framework is a culmination of people’s needs, aspirations and desires. We want to

further re-affirm our commitment to reform and re-engineer our budget in an effort to speed up change.

We will do this guided by the National Development Plan, the legislative requirements of local

government, the ruling party’s manifesto and the municipal vision, which clearly states that we are: “A

developmental municipality that is self-sustainable to empower its citizens socially, economically

and legislatively to ensure sustainable livelihood”.

Sustainable livelihood to us means “community empowerment and making better decisions on issues that

affect people’s lives”.

The IDP presented today is a 5-year plan intended to improve the quality of life.

Honourable Speaker; allow me to present a 2017/2020 Medium Term Revenue Expenditure Framework,

as informed by community needs.

Through Equitable share; the Municipal Infrastructure Grant and the Integrated National Electrification

Programme, we have allocated resources to invest in infrastructure.

To this end, Mnquma Local Municipality has allocated a total budget of R35 Million to construct 50 Km of

access roads during the 2017/2018 financial year.


The following roads will be constructed:

- Dyam-Dyam Access Road in Ward 14

- Gubevu to Sawutana Access Road in Ward 19

- Ngxalathi Access Road in Ward 7

- Ncerana Access Road in Ward 28

- Blue Sky Access Road in Ward 23

- Ngqwarha to Manyube Access Road in Ward 27

- Macibe Access Road in Ward 26

- Mpahleni Access Road in Ward 18

- Lusuthu to Masele Access Road in Ward 20

- Litchi to Qolweni Access Road in Ward 27

A total budget of R5 million has been set aside to connect 200 households to the power grid while

Eskom plans to further electrify 5 721 households.

The Kotana Sport Field in Ward 19, Diya Community Hall in Ward 11 and Ngqamakhwe Taxi Rank in

Ward 18 are among the projects to be undertaken during the 2017/2018 financial year.

A total Capital budget of R69 million for the 2017/2018 financial year has been secured from the

following sources:

a) R61 million from the Municipal Infrastructure Grant (MIG)

b) R5 million from the Integrated National Electrification Program

c) R3 million from Equitable Share

Kuhlahlo- lwabiwo mali lo nyaka ka 2017/2018, sibekele bucala isigidi esinamakhulu amahlanu

amawaka (R1.5 million) ukucoca izitalato, ukuqokelela inkunkuma sincedisana no Kopolotyeni

abathathu.

Land Use Planning remains part of building spatially integrated communities. As such, a total budget of

R500 000 has been set aside for development of the Land Use Management Scheme, a comprehensive

survey and formalization of eight ervens.

The South African Constitution Act 108 of 1996 gives a mandate to local government to promote a safe

and healthy environment for its people. We will continue to maintain our public amenities and further


maintain our coastal areas while embarking on public awareness campaigns to educate our communities

about our environmental programmes.

A total budget of R1.6 million has been set aside for the maintenance of public amenities and

environmental awareness programmes.

Honourable Speaker, as I have indicated before, the budget of the municipality is informed by the ruling

party’s manifesto, the State of the Nation Address, State of the Eastern Cape Provincial Address and the

aspirations of our people.

President Zuma and Premier Masualle have committed themselves in building a South Africa and an

Eastern where poverty, inequality and unemployment are eradicated.

Mnquma Local Municipality has limited employment opportunities and this has huge implications on the

ever-increasing need for welfare and indigent support. It is for this reason that this Council has placed a

strong emphasis on social development and economic development programmes and initiatives.

As such, we will continue to provide alternative energy to communities that are still without access to

electricity.

A total budget of R9 million has been set aside for Indigent Support.

The backbone of the municipality’s economy is heritage; tourism and eco-tourism; agriculture;

manufacturing and trade. This is the reason why Local Economic Development finds specific expression

in the 2017/2022 IDP priorities.

We have therefore set aside a total budget of R860 000 for Local Economic Development for

implementing the following programs:

The Development of SMME’s/Co-operatives to become sustainable businesses that contribute to local

economic development, maintenance of heritage sites, establishment of co-operative development centre

and the promotion of sustainable development initiatives.

We will continue to promote the municipality’s business efficiency and competitiveness through the

revitalization of Butterworth Industries and the Gcuwa Dam Development.


Ukuveza amathuba emisebenzi lolunye uxanduva esijongene nalo; kungoko ke sibekele bucala ezi

zabelo zilandelayo:

- Izigidi ezibini ezinamakhulu amathathu amawaka (R2.3 million) ukudala amathuba

emisebenzi ethutyana has also Expanded Public Works Programme kunyaka mali ka

2017/2018.

Somlomo WeBhunga isahluko sesine soMthetho kaRhulumente weNqila wonyaka ka 2000

(Chapter 4 of the Local Government: Municipal Systems Act 32 of 2000) ugunyazisa uMasipala

ukuba aqinisekise intanto-nxaxheba yoluntu kwizicwangciso zikaMasipala, imicimbi edibene

nohlalo lwabiwo mali, ingxelo ngokusetyenziswa kwemali, ukuqinisekisa ukusebenza kwee policy

zika masipala.

Honourable Speaker, for the municipality to be able to achieve public participation and accountability,

Chapter 4 of the Local Government: Municipal Systems Act, the White paper of Local Government and

the mandate of the Constitution of the Republic of South Africa, Act 108 of 1996, which proclaims:

“Encourage involvement of communities and community organizations on matters of local government”.

We have set aside R2. 4 million for the following:

- Community Outreach Programmes

- Communication and Advocacy

- Capacity-building programmes

- Special Programs with a particular focus on uplifting the lives of designated groups.

Honourable Speaker, one of the Key Performance Areas of Local Government that the municipality

should focus on is “Good Governance and Public Participation”. The question, therefore, becomes: How

do we strengthen and improve good governance and accountability as a mandate of the local government

and a pillar of the Back to Basics Programme?

Somlomo weBhunga, ukuze uMasipala aqinisekise uLawulo ngendlela elungileyo umisele ezi

zigaba zilandelayo waze wabekela bucala imali engange zigidi esizibhozo ezinamakhulu

amathandathu amawaka (R8.6 million) ukuze kufezekiswe ulawulo olusulungekileyo kwezi zigaba

zilandelayo:

- Ingalo yoMthetho (Legal Services);

- Unxulumaniso, ulawulo lweziganeko, (Communication, Marketing and Events

Management);

- Uphicotho Lwencwadi (Internal Audit and Auditor General);


- Ukuphicothwa kwee policy zikamasipala kunye nemigomo yolawulo-nemithethwano

kamasipala

(Policy and By-Laws Reviews)

- Ukulawula indllela yokuzibeka esichengeni (Risk Management);

- Ubuhlobo phakathi kweminyango kaRhulumente namaziko apahakamileyo eMfundo afana

neWalter Sisulu University, King Hintsa TVET College, University of Fort Hare, Nelson

Mandela University kunye neFort Cox;

- Ulawulo lwendlela yokusebenza (Performance Management System); kunye

- Nesigcwangciso-nkqubo esikhokhela uphuhliso (Integrated Development Plan).

Honourable Speaker, the final 2017/2020 Medium Term Revenue Expenditure Framework is funded as

follows:

GRANT 2017-2018

Equitable Share R 227 million

Finance Management Grant R 1.7 million

Municipal Infrastructure Grant R 64 million

Expanded Public Works Programme R 2.3 million

Integrated National Electrification Programme R 5 million

TOTAL R 299 million


2017/2018 PROPOSED BUDGET

OWN REVENUE PROPERTY RATES R19 million

SERVICE CHARGES R4 million

SERVICE CHARGES-REFUSE R4 million

RENTAL OF FACILITIES AND EQUIPMENT R3.2 million

INTEREST EARNED-EXTERNAL INVESTMENTS R5.6 million

INTEREST EARNED-OUTSTANDING DEBTORS R5.3 million

FINES R9 million

AGENCY SERVICES R3.9 million

TRAFFIC SERVICES R1 million

OTHER REVENUE R1.2 million

GAINS ON DISPOSAL OF PPE R1 million

TOTAL DIRECT REVENUE R54 million


MEDIUM TERM REVENUE AND EXPENDITURE FRAMEWORK FOR 2017 – 2020

R thousand Budget Year 2017/18

Revenue By Source

Property rates R19 million

Service charges - refuse revenue R4.1 million

Rental of facilities and equipment R3.2 million

Interest earned - external investments R5.6 million

Interest earned - outstanding debtors R5.3 million

Fines, penalties and forfeits R9 million

Licences and permits R1 million

Agency services R3.9 million

Transfers and subsidies R231 million

Other revenue R1.2 million

Gains on disposal of PPE R1.1 million

Total Revenue (excluding capital transfers and contributions) R285 million

Expenditure By Type

Employee related costs R175 million

Remuneration of councilors R26 million

Debt impairment R11.8 million

Depreciation & asset impairment R113 million

Finance charges R900 thousand

Bulk purchases R9 million

Other materials R6.3 million

Contracted services R10.8 million

Other expenditure R44 million

Loss on disposal of PPE

Total Expenditure R398 million

Surplus/(Deficit) (R113 million)

Transfers and subsidies - capital (monetary allocations) (National / Provincial and District) R68.7 million

Surplus/(Deficit) after capital transfers & contributions

R44 million


Honourable Speaker; with regard to the revenue and expenditure of the tabled budget; I would like to

make the following remarks:

1. Operating income budget has increased from R 264 098 000 to R 285 147 000

2. Operating Expenditure budget has increased from R 393 904 000 to R 398 231 000

3. Capital Budget has decreased from to R 72 225 000 to R 68 776 000

4. Operating budget has a deficit of R 113 084 000 which is made by non-cash item (Depreciation).

In conclusion; Honourable Speaker, I hereby convey my humble gratitude to Councilors and Traditional

Leaders who sit in Council for the work done in 2016/2017 financial year and for putting together

2017/2022 IDP and 2017/2020 MTERF Budget.


SCM8/17/006.1.1 STRATEGIC MANAGEMENT

DIRECTORATE

Honorable Speaker, I hereby submit the:

(i) 2017/2022 Integrated Development Plan for approval

(ii) 2017/2018 Service Delivery and Budget Implementation Plan for noting

SCM8/17/006.1.2 BUDGET AND TREASURY OFFICE

(BTO)

(a) Honorable Speaker, the Council is hereby requested to approve Final MTREF Budget for

2017/2020

(b) It is further recommended that the following resolutions be taken by council:

1. That in terms of circular 66 A1 Schedule Version 2.8 with the Audited figures for 2013-2016

and approved budget figures be noted by council for submission to Treasury.

2. That in terms of section 24 of the MFMA Act 56 of 2003, the Final annual budget of the

municipality for 2017-2020 and Capital appropriations are approved as set out in the

following tables:

2.1 Budgeted Financial Performance by standard classification of revenue of

R 282 831 000 and Expenditure of R 398 231 000 (A2).

2.2 Budgeted Financial Performance by vote of revenue of R 285 147 000 and Expenditure

of R 398 231 000 (A3).

2.3 Budgeted Financial Performance of revenue by source of R 285 147 000 and

Expenditure of R 398 231 000 (A4).

3. That the Financial Position, Cash flow and Service delivery targets are approved in the

following tables:


3.1 Capital Expenditure of R 68 776 000 (A5)

3.2 Budgeted Financial Position (A6)

3.3 Budgeted Cash flows (A7)

3.4 Cash backed and accumulated surplus reconciliation (A8)

3.5 Asset management (A9)

3.6 Basic service delivery measures (A10)

4. That in terms of S24(2)(c)(i) of the MFMA Act 56 of 2003 and Section 74 and 75 of the

Municipal Systems Act of 2000 as amended; the tariffs of rates and services that were

used to prepare the estimates of revenue by source are approved with effect from 1 July

2017.

5. That in terms of section 24(2)(c)(iii) of the MFMA Act 56 of 2003, the measurable

performance objectives for draft operating and capital budget by vote for each year of the

MTREF as set out in supporting tables are approved.

6. That free basic package as set out in the budget is approved.

7. That in terms of S24(c) (v) of the Municipal Finance Management Act 56 of 2003; the

following policies are part of the budget process and were used in the preparation of the

budget and were approved by Council:

7.1 Budget Policy

7.2 Indigent Policy

7.3 Property Rates Policy

7.4 Tariff Policy

7.5 Borrowing Policy

7.6 Supply Chain Management Policy

7.7 Asset Management Policy

7.8 Credit Control and Debt Management Policy

7.9 Funds and Reserves Policy

7.10 Cash Management Policy

7.11 Investment Policy


I THANK YOU

Documents

STATE OF THE MUNICIPALITY ADDRESS€¦ · State of the Municipality Address as delivered by the Executive ... The Honourable Speaker; ... oath of office following the local government