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Local Government Sector Local Government Sector Education Training Education Training AuthorityAuthority

PORTFOLIO COMMITTEE ON HIGHER PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING (PCHET)EDUCATION AND TRAINING (PCHET)

PRESENTATION ON THE LGSETA PRESENTATION ON THE LGSETA ANNUAL REPORT 2011/12ANNUAL REPORT 2011/12

27 FEBRUARY 201327 FEBRUARY 2013

Background context & state of the LGSETA

o Submitted 2011/12 annual report in September 2012o Engaged with DHET formally in November 2012o on the areas of the LGSETA’s underperformanceo Outcome of the engagement were formal

representations to the Minister for a section 14 (a) intervention to be approved by the Minister as a basis for turning around the performance of the LGSETA

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Background context & state of the LGSETA (continued)

o Currently the LGSETA is interacting with Minister on :

o A revised 2012/13 and 2013/14 strategic plans that must be in accordance with the requirements as communicated to the SETA

o This presentation to PCHET is made against the above mentioned context and specific organisational matters that emanate from the annual report 2011/12 read together with the audited financial statements of the same period.

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Governance Matters

o The meetings of the Board and its structures has been held as per the constitution

o Majority of Board members were appointed in September 2011

o Late submission of Annual Report one of the main challenges

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High level summary of the 2011/12 Annual report

Contributed to the delivery of Government Outcomes 5, 9, NSDSIII and National Skills Accord.

Councillor Induction after Local Government election in 2011, almost eight thousand councillors (8000) inducted

Officials trained on minimum competency requirement, and on scarce and critical skills (Finance)

Registered 552 Artisan learners Assist municipalities in achieving blue and green drop

status by training 1795 Water Process Controllers in Municipalities

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High level summary of the 2011/12 Annual report (continued)

Provided 181 Bursaries on various critical skill areas including Ichthyology with Rhodes Universities which also contributes to Rural Development.

Supported 86 Interns in Horticulture and Nature Conservation

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Scarce and critical skills

OFO Code

Occupation Intervention Location

111301 Councillor 7 498 inducted in a programme implemented through a partnership (LGSETA/ SALGA)

National project

111403 Local authority Manager/ Finance

MFMA National Treasury competencies – various universities

National Project

224502 Valuer SA Council for Property Valuers- 27 interns & 11 Bursaries

National Project

221204 Internal Audit 220 learnerships40 interns

National Project

232601 Urban & Regional Planners

20 bursaries5 interns

National Project

Scarce and critical skills (continued)

OFO Code Occupation Intervention Location

233202/2333202

engineers/ technologists 11 interns25 bursaries(4 GCC )

National

334100 Artisans – electrical, plumbing, fitters

DBSA/ MISA partnership -230 artisansMunicipal partnerships - 332

National

551101 Accounts clerks Local Government Accounting Certificate1000 learnerships

National

712909 Water plant operator 1100 learnerships400 skills programmes

National Dept of water Affairs & EWSETA collaboration –

821101 Builders workers( road construction)

500 learnerships & skills programmes

National

821102 Drainage, sewerage & stormwater

300 learnerships & skills programmes

National

Strategic Focus Areas(Rural Development )

o Discretionary grant focuses on 108 rural and vulnerable municipalities as identified by DCoG, plus 23 vulnerable districts ( SIPS 6) with particular emphasis on water and waste water treatment operations (learnerships & skills programmes)

o Marine resource management training for municipal officials, subsistence fishermen & traditional leaders – OR Tambo, Port St Johns, Port Nolloth/ Richtersveld, Eden, Saldanha ( skills programmes – Rhodes university Dept of Icthyology)

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Strategic Focus Area(Higher Education Institution Agreements):

o University of Pretoria: Municipal Finance: R4,5mo North West : Municipal Finance: R2,7mo Stellenbosch: Municipal finance: R2,7mo Ft Hare: Municipal Finance: R 2,7mo NMMU: Municipal Finance : R2,7mo Rhodes : Marine resources: R980 000

Historical Audit Reports

2011/12 - Disclaimer 2010/11 - Unqualified 2009/10 - Unqualified 2008/09 – Unqualified

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Administrative Interventions

CFO appointed for 6 months HR & Corporate Manager appointed for 6

months 18 additional staff employed on temporary basis Organisational redesign completed awaiting

Board approval Delegations revised awaiting Board approval All HR & SCM Policies revised

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Administrative Interventions (continued)

Working closely with the AG to avoid another disclaimer.

Meeting with National Treasury to finalise condonation of irregular expenditure on 28 February 2013.

A detailed action plan has been compiled and is attached to deal with the following:

* Audit Findings on Supply Chain Management

* Audit Findings on Human Resource matters

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LGSETA Turnaround Plan of Action

Board’s preliminary assessment of the LGSETA challenges: Non-compliance to statutory obligations and

underperformance Board members not functioning as cohesive unit Management underperformance Non-compliance with auditing requirements

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LGSETA Turnaround Plan of Action (continued)

Key Actions indentified by the Board: Appointment of turnaround specialist Institutionalise organisational calendar Institutionalise Board Quarterly Performance review sessions Establish formal bi-annual Board dialogues with Minister Review of delegations Finalise organisational redesign Dedicated attention to DHET compliance matters Submit to Minister Board representation on LGSETA constitution Monitoring of turnaround Submit progress to DHET Interim chairperson

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STRATEGIC FOCUS AREA(FET Partnership)

o To link FET’s with municipalities for training in Rural areas.o Signed provincial MOUs with FETs in KZN, Western Cape and

Mpumalanga. o Individual MOUs o To establish offices and collaborate with FETs.

• Limpopo, Mopani offices confirmed to be opened in March 2013. (Office identified and agreed with management)

• Northern Cape Urban FET and Mpumalanga (Gert Sibande) by June 2013

• MOUs to be finalised by 28 February with Esayidi, Umfolozi Mopani South, Sekhukhune.

• End of March Sekhukhune, Uitenhage, Northern Cape Urban FET. • Taletso in Mafikeng has been identified for Artisan training.

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STRATEGIC FOCUS AREA (Collaboration with FETs)

o Bursarieso Environmental Practice trainingo Disaster managemento Civil Educationo Rural Development Fisheries project. o Training of traditional leaderso WIL placement with municipalitieso Water process controller qualifications

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Conclusion

o Turnaround actions have been successfully implemented and we are expecting an unqualified report in 2012/13

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THANK YOU

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