FINAL DRAFT OVERSIGHT REPORT 17 March...
Transcript of FINAL DRAFT OVERSIGHT REPORT 17 March...
________________________________________________________________________________ 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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
1
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
• 18 February 2014
• 25 February 2014
• 6 March 2014
• 13 March 2014
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
2
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
3
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
4
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
5
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
6
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
7
• 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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
8
3.2.1.3 Material losses and impairments
As disclosed in note 28 to the consolidated and separate financial
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
As disclosed in note 54 to the consolidated and separate financial
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
9
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
10
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
11
(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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
12
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
13
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
The Municipal Public Accounts Committee recommends that the City
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
14
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
The Municipal Public Accounts Committee recommends that the City
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
15
(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
The Municipal Public Accounts Committee recommends that the City
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
16
3.4.5 Basic Service Delivery and Infrastructure De velopment
3.4.5.1 Waste Management
(a) The Municipal Public Accounts Committee recommends that the City
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)
The Municipal Public Accounts Committee recommends that the City
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
17
3.4.5.4 Backlog in repairs and maintenance
The Municipal Public Accounts Committee recommends that the City
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
18
(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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
19
(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
The Municipal Public Accounts Committee recommends that the City
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
The Municipal Public Accounts Committee recommends that the City
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)
The Municipal Public Accounts Committee recommends that the City
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
20
3.4.8 Sports, Recreation, Arts and Culture – Beache s
(a) The Municipal Public Accounts Committee recommends that the City
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
The Municipal Public Accounts Committee recommends that the City
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
21
3.4.10 Good Governance and Public Participation
3.4.10.1 Internal Audit Charter
The Municipal Public Accounts Committee recommends that the City
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
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.
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
22
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
23
ANNEXURES
ANNEXURE “A”:
MINUTES OF EACH MUNICIPAL PUBLIC ACCOUNTS COMMITTEE MEETING
(Meeting held on 4 February 2014)
PRESENT: Councillor V J Tutu (Chairperson)
Councillor D N Biddulph
Councillor X C Bisset
Councillor N R Captain
Councillor A P Dashwood
Councillor B N Mafaya
Councillor H Müller
Councillor K G Ntshanyana
Councillor R Odendaal
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)
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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
There were no disclosures.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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).
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
44
(Meeting held on 13 February 2014)
PRESENT: 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 B N Mafaya
Councillor J N Mapu
Councillor H Müller
Councillor T S Noqoli
Councillor K G Ntshanyana
Councillor R Odendaal
ALSO PRESENT: Councillor N S Soul (12:25)
Acting City Manager (Dr M Chabula-Nxiweni)
Acting Chief Financial Officer (Ms B A de Scande)
Executive Director : Corporate Services
Acting Executive Director: Electricity and Energy (Mr P Neilson)
Acting Executive Director: Infrastructure and Engineering
(Mr B Huttoni)
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: Safety and Security (Mr S Brown)
Assistant Director: Human Settlements (Mr Z Nkayitshana)
Director: Corporate Services (Mr S Javu)
Director: Internal Audit and Risk Assurance (Ms B Chan)
Acting Assistant Director: Legal Services (Mr M Ganyaza)
Support Services Officer (Public Health) (Ms U Smith)
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
45
Administrative Officer (Office of the COO) (Mr J Wait)
Performance Management Practitioner (Office of the COO)
(Mr W Obeng)
Committee Administrator (Ms A Craighead)
Committee Secretary (Ms S Joubert)
Committee Secretary (Ms V Heera)
STATEMENTS BY CHAIRPERSON
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
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
46
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
There were no disclosures.
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:
RESOLVED TO RECOMMEND:
(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.)
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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:
RESOLVED TO RECOMMEND:
(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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
RESOLVED TO RECOMMEND:
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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:
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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)
RESOLVED TO RECOMMEND:
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.)
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
59
(The Acting Chief Operating Officer, Dr M Chabula-Nxiweni, entered the meeting at
12:00.)
27.11 Repairs and maintenance backlog (p. 37)
RESOLVED TO RECOMMEND:
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)
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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,
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
RESOLVED TO RECOMMEND:
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
68
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
69
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.
The meeting terminated at 13:20.
COUNCILLOR V J TUTU
C H A I R P E R S O N
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
70
(Meeting held on 18 February 2014)
PRESENT: 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 H Müller
Councillor T S Noqoli
Councillor R Odendaal
ALSO PRESENT: Acting Chief Operating Officer (Dr M Chabula-Nxiweni)
Acting Chief Financial Officer (Ms B A de Scande)
Acting Executive Director: Infrastructure and Engineering
(Mr W Shaidi)
Acting Executive Director: Electricity and Energy (Mr P Neilson)
Acting Executive Director : Human Settlements (Mr L Petuna)
Acting Executive Director: Safety and Security (Mr S Brown)
Acting Executive Director: Public Health (Mr A Tolom)
Director: Internal Audit and Risk Assurance (Ms B Chan)
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: Legal Services (Mr M Ganyaza)
Acting Assistant Director : (Office of the COO (Ms Z Mhuluhulu)
Finance Manager : IPTS (M P Skade)
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
71
Administrative Officer (Office of the COO) (Mr J Wait)
Committee Secretary (Ms S Joubert)
Committee Secretary (Ms V Heera)
STATEMENTS BY CHAIRPERSON
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
72
APPLICATIONS FOR LEAVE OF ABSENCE IN TERMS OF PARAG RAPH 3 OF THE
CODE OF CONDUCT
No applications were received.
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)
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
DISCLOSURE OF INTERESTS BY OFFICIALS
There were no disclosures.
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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%
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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:
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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?
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
79
RESOLVED TO RECOMMEND:
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
RESOLVED TO RECOMMEND:
(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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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
The meeting terminated at 11:30.
COUNCILLOR V J TUTU
C H A I R P E R S O N
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
83
(Meeting held on 25 February 2014)
PRESENT: Councillor V J Tutu (Chairperson)
Councillor X C Bisset
Councillor N R Captain
Councillor A P Dashwood
Councillor T Gana
Councillor M Harning
Councillor B N Mafaya
Councillor J N Mapu (10:10)
Councillor H Müller
Councillor T S Noqoli
Councillor K G Ntshanyana
Councillor R Odendaal
ALSO PRESENT: Councillor A C G Mfunda (10:50)
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: Infrastructure and Engineering
(Mr W Shaidi)
Acting Executive Director: EDTA (Ms L Mxenge)
Acting Executive Director: Public Health (Mr J Mkosana)
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 M H Totoyi)
Director: Corporate Services (Mr N Mqulwana)
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
84
Strategic Manager: Corporate Services (Ms N Makapela)
Director: Internal Audit and Risk Assurance (Ms B Chan)
Acting Assistant Director: Legal Services (Mr M Ganyaza)
Support Services Officer (Public Health) (Ms U Smith)
Administrative Support Officer: Infrastructure and Engineering
(Mr Z Qenqwa)
Acting Assistant Director (Office of the COO) (Ms Z Mhuluhulu)
Administrative Officer (Office of the COO) (Mr J Wait)
Representative of the Office of the COO (Ms M Nel)
Committee Administrator (Ms A Craighead)
Committee Secretary (Ms S Joubert)
APPLICATIONS FOR LEAVE OF ABSENCE IN TERMS OF PARAG RAPH 3 OF THE
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.
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
There were no disclosures.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
85
REPORT BY EXECUTIVE DIRECTOR : CORPORATE SERVICES
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
38.2 Page 4 of spreadsheet, point 1.2:
% 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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
86
38.3 Page 5 of spreadsheet, point 1.2:
% 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.
RESOLVED TO RECOMMEND:
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
87
infrastructure contributed to frequent leaks, with a view to a sustainable solution
to this challenge being developed.
38.4 Page 7 of spreadsheet, point 1.6:
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.
RESOLVED TO RECOMMEND:
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.
38.5 Page 8 of spreadsheet, point 1.7:
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
88
38.6 Page 10 of spreadsheet, point 1.9:
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
89
The meeting terminated at 11:20.
COUNCILLOR V J TUTU
C H A I R P E R S O N
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
90
(Meeting held on 6 March 2014)
PRESENT: Councillor V J Tutu (Chairperson)
Councillor D N Biddulph
Councillor X C Bisset
Councillor A P Dashwood
Councillor T Gana
Councillor M E G Harning
Councillor B N Mafaya
Councillor H Müller
Councillor T S Noqoli
Councillor R Odendaal
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)
Acting Chief Financial Officer (Ms B A de Scande)
Acting Executive Director: Human Settlements (Mr L Petuna)
Acting Executive Director: Sport, Recreation, Arts and Culture
(Ms C Williams)
Acting Executive Director: Safety and Security (Mr A de Ridder)
Director: Water and Sanitation (Mr B J Martin)
Director: Internal Audit and Risk Assurance (Ms B Chan)
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)
Acting Assistant Director: Legal Services (Mr M Ganyaza)
Administrative Manager: EDTA (Mr E Noack)
Support Services Officer (Public Health) (Ms U Smith)
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
91
Administrative Officer (Office of the COO) (Mr J Wait)
Administrative Support Officer (Office of the COO) (Ms M Nel)
Committee Administrator (Ms A Craighead)
Committee Secretary (Ms S Joubert)
Committee Secretary (Ms V Heera)
APPLICATIONS FOR LEAVE OF ABSENCE IN TERMS OF PARAG RAPH 3 OF THE
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
92
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
There were no disclosures.
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.
CONFIRMATION OF MINUTES – MEETING HELD ON 18 FEBRUA RY 2014
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
93
CONFIRMATION OF MINUTES – MEETING HELD ON 25 FEBRUA RY 2014
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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
REPORT BY EXECUTIVE DIRECTOR : CORPORATE SERVICES
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:
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
RESOLVED TO RECOMMEND:
(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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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).
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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
The Municipal Public Accounts Committee recommends that the City
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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” .
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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” .
The meeting terminated at 12:00.
COUNCILLOR V J TUTU
C H A I R P E R S O N
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
108
(Meeting held on 13 March 2014)
PRESENT: Councillor V J Tutu (Chairperson)
Councillor D N Biddulph
Councillor X C Bisset
Councillor A P Dashwood
Councillor M E G Harning
Councillor B N Mafaya (9:30)
Councillor H Müller
Councillor T S Noqoli
Councillor R Odendaal
ALSO PRESENT: Acting Chief Operating Officer (Ms N Mzinzi)
Executive Director: Corporate Services
Acting Chief Financial Officer (Mr A Ferreira)
Acting Executive Director: Sport, Recreation, Arts and Culture
(Ms C Williams)
Acting Executive Director: Safety and Security (Mr S Brown)
Director: Internal Audit and Risk Assurance (Ms B Chan)
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)
Acting Assistant Director: Legal Services (Mr M Ganyaza)
Administrative Manager: EDTA (Mr E Noack)
Support Services Officer (Public Health) (Ms U Smith)
Administrative Officer (Office of the COO) (Mr J Wait)
Administrative Support Officer (Office of the COO) (Ms M Nel)
Committee Administrator (Ms A Craighead)
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
109
Committee Secretary (Ms S Joubert)
Committee Secretary (Ms V Heera)
ABSENT WITHOUT
LEAVE: Councillor T Gana
Councillor K G Ntshanyana
APPLICATIONS FOR LEAVE OF ABSENCE IN TERMS OF PARAG RAPH 3 OF THE
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
110
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
There were no disclosures.
REPORT BY EXECUTIVE DIRECTOR : CORPORATE SERVICES
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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) :
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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
The Municipal Public Accounts Committee recommends that the City
Manager and the Chief Financial Officer ensure the development of a
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
113
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
The Municipal Public Accounts Committee recommends that the City
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
114
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
The Municipal Public Accounts Committee recommends that the City
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)
The Municipal Public Accounts Committee recommends that the City
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:
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
115
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.
The meeting terminated at 10:15.
COUNCILLOR V J TUTU
C H A I R P E R S O N
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
116
ANNEXURE “B” : ADVERTISEMENTS/INVITATIONS TO
THE PUBLIC TO PARTICIPATE
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
117
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
118
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
119
• 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.
C H A I R P E R S O N
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
120
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.
C H A I R P E R S O N
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
121
MOLLY BLACKBURN CLUSTER
(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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
122
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
123
• 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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
124
• 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.
C H A I R P E R S O N
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
125
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
The meeting terminated at 20:40.
C H A I R P E R S O N
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
130
(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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
131
4. INTERACTIVE SESSION
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
132
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.
C H A I R P E R S O N
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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)
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
134
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)
1. OPENING AND WELCOME
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:
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
135
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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:
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
139
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.
The meeting terminated at 21:00.
C H A I R P E R S O N
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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)
1. OPENING AND WELCOMING
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
141
• 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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
142
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.
The meeting terminated at 20:40.
C H A I R P E R S O N
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
144
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
145
• 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.
C H A I R P E R S O N
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
146
ALEX MATIKINCA CLUSTER
(WARDS 23, 56, 58, 59 AND 60)
(Minutes of meeting held on Monday, 3 March 2014 at Raymond Mhlaba Sports
Centre, at 18:00)
1. OPENING AND WELCOMING
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
147
(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.
4. INTERACTIVE SESSION
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
C H A I R P E R S O N
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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
Members of the Public
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
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
C H A I R P E R S O N
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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
Members of the Public
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).
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
152
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
C H A I R P E R S O N
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
154
LILLIAN DIEDERICKS CLUSTER
(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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
C H A I R P E R S O N
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
156
ALEX MATIKINCA CLUSTER
(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.
C H A I R P E R S O N
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
157
LILLIAN DIEDERICKS CLUSTER
(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
Members of the Public
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
C H A I R P E R S O N
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
159
MOLLY BLACKBURN CLUSTER
(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
Members of the Public
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
C H A I R P E R S O N
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
161
MOLLY BLACKBURN CLUSTER
(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 M E G Harning
Councillor A B Gibbon
Councillor D A Hayselden
Councillor M Steyn
1. OPENING AND WELCOME
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
________________________________________________________________________________ Municipal Public Accounts Committee : Oversight Report on 2012/13 Annual Report
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.
The meeting terminated at 20:15.
C H A I R P E R S O N