O.R. TAMBO DISTRICT MUNICIPALITY

PROFILE

1

TABLE OF CONTENTS

2

EXECUTIVE SUMMARY 31. INTRODUCTION 41.1 Overview 41.2 Municipalities within the District 51.3 Political and Administrative Leadership and Seat of District 61.4 Political Representation 62. SERVICE DELIVERY 72.1 Household Infrastructure 72.2 Sanitation 72.3 Water 72.4 Electricity 82.5 Refuse Removal 82.6 Service Provider 83. AUDIT OPINIONS 84. STATE OF LOCAL GOVERNMENT ASSESSMENT 94.1 Overview of findings on assessment in the Municipality 94.1.1 Governance 94.1.2 Financial Management and Viability 94.1.3 Service Delivery 95. INFRASTRUCTURE PRIORITIES IN TERMS OF THE MUNICIPAL

TURN-AROUND STRATEGY10

6. MIG PROJECTS 117. VULNERABILITY CLASSIFICATION 12

EXECUTIVE SUMMARY

3

O.R. Tambo District Municipality is a predominantly rural district in the Eastern Cape, with low levels of education and high out-migration by men. The agricultural potential of the region remains largely untapped, with government as the most important contributor to the local economy and the biggest employer. There are seven local municipalities within the district. Most of the existing water and sanitation infrastructure is not functioning properly and refurbishment and maintenance is a priority.

The district has the lowest access to infrastructure in the Eastern Cape, with levels of 14% in 1996 which improved to 36% in 2008. This was mainly driven by an increase in access to electricity, a function that is not performed by the District Municipality. More than half of the population does not have access to potable water, and 35% of households are without toilets.

The audit opinions for the District Municipality and most of the local municipalities remain poor, although two local municipalities have achieved financially unqualified opinions with findings in 2009/10. The State of Local Government Assessment found governance challenges on section 57 manager level in the district. In terms of service delivery it was found that several water sources within the district are drying up and this increases the number of households that lack access to water. Maintenance issues included water stoppages due to repeated electricity outages and frequent sewerage leakages.

In terms of its Municipal Turn-Around Strategy the District identified challenges within the local municipalities which include the need to strengthen technical services, the improvement of refuse removal functions, the poor IGR relations between the district and some of the locals, as well as the need to review the allocation of powers and functions between the District and the locals.

Six of the seven local municipalities in the O.R. Tambo District have been classified as in the category of most vulnerable by DCoG in terms of functionality, socio-economic profile and backlog status.

This profile confirms that infrastructure prioritisation in O.R. Tambo District should focus on access to clean water and sanitation. Operations and maintenance is a critical area that should be attended to, while the division of powers and functions between the district and locals, especially in terms of the provision of water and sanitation may require review.

1. INTRODUCTION

4

1.1 Overview1

O.R. Tambo District Municipality (ORTDM) lies in the east of the Eastern Cape and consists of seven local municipalities. O.R. Tambo District is characterised by rolling hills, broken by rivers, stretching from the mountains in the north to the coast in the south. The Wild Coast is notable for its marine bio-diversity and has been recognised as one of the WWF’s global eco-regions.

The N2 runs through the district from Mthatha to Cape Town and Durban. The R61 runs parallel to the coast, providing access to Buffalo City and Kokstad. Generally, the road network is in a poor condition. The rail link between Mthatha and East London is to be upgraded and extended to Langeni to facilitate the export of timber from the region. Unemployment is high, as are dependency ratios; and many households are dependent on state pensions.

The O.R. Tambo District is predominantly rural, with most of the population concentrated in the west, around Mthatha, the main town and administrative centre. Homesteads are dispersed along ridges and in the valleys on flat land. Migration has contributed to the growth of Mthatha and the main service centres of Bizana, Lusikisiki and Port St Johns. Most industrial and commercial activity is located in Mthatha in Vulindlela and Zamukulungisa. The Walter Sisulu University is situated at Mthatha, and there is also an FET college. However, educational levels are low, with a high level of illiteracy.

The largest contributor to the local economy, and the biggest employer, is government and the provision of community services. Trade, finance and agriculture also make significant contributions. Transport, mining and construction have been showing some growth, while manufacturing is stagnating. Only the agriculture and forestry sector has shown a sustained growth in employment. The Department of Agriculture, Forestry and Fishery (DAFF) manages most of the indigenous forests. Most commercial forests are on state owned land. Those managed by Singisi Forests Products are subject to a land claim. There is some sand mining and quarrying.

Men leave the district in search of work, resulting in female headed households. Almost half the population is younger than 15, which creates a need for educational facilities and skills development. More people are finding employment in the informal sector.

The agricultural potential of ORTDM remains largely untapped. Agricultural activity is predominantly subsistence farming on communal land. There is potential for commercial-scale, irrigated agricultural projects. The system of communal tenure presents management challenges.

Tourism has been identified as a growth sector. The district is committed to addressing bottlenecks to tourism development such as branding, infrastructure and institutional capacity. The Wild Coast also presents opportunities for the local people in marine and

1 Source: Gaffney’s, November 2009: Local Government in South Africa 2009 – 2011, Official Yearbook: p 557 - 561.

5

aquaculture. The unspoilt natural beauty along the Wild Coast, as well as the cultural and historical heritage can all be exploited.

The district realises that land and spatial planning must be improved if the full potential in forestry and agriculture is to be realised, if housing is to be provided, and if social cohesion is to be achieved. Critical issues include the resolution of land claims, improvement in land use planning, ensuring security of land tenure and making land available for development

Although the rivers carry fresh water down to the sea, over half of the population do not have access to potable water. Most of the existing water and sanitation infrastructure is not functioning properly and refurbishment and maintenance is a priority.

1.2 Municipalities within the O. R. Tambo District

The main towns and service centres are Mthatha, Bizana, Lusikisiki and Port St Johns. The details of the seven local municipalities within the District is tabled below:

Table 1: Statistics of the OR Tambo District and Local Municipalities

Municipalities within the District

Area (km2)

in 2009

Area (km2) after 2011 Local Govt Elections & %

change

Population No. ofHouseholds

PovertyRate

OR Tambo District Municipality

13,491.11 15,897.18 17.83% 1,819,596 347,932 75.16%

Ingquza Hill Local Municipality

2476.83 2,476.83 - 273,387 47,587 76.99%

King Sabata Dalindyebo Local Municipality

3,027.37 3,027.37 - 434,651 91,245 63.83%

Mbizana Local Municipality

2,416.72 2,416.72 - 273,333 47,299 79.75%

Mhlontlo Local Municipality

2,826.09 2,826.09 - 231,708 48,719 73.39%

Ntabankulu Local Municipality

1,455.72 1,384.96 -4.86% 138,126 27,292 80.08%

Nyandeni Local Municipality

2,474.01 2,474.01 - 307,083 55,550 75.59%

Port St Johns Local Municipality

1,291.20 1,291.20 - 161,308 30,241 76.49%

1.3 Political and Administrative Leadership and Seat of District2

2 Source: OR Tambo DM; August 2011

6

Political Leadership: Executive Mayor: Mr J D MyolwaAdministrative Leadership: Acting Municipal Manager: Mr TT Nogaga 

The head office of the District is located in Mthatha.

1.4 Political representation3

Table 2: Local Government Election 2006 / Provincial & National Elections 2009 comparison:

Leading Parties in the Elections

Local Government Elections 2006 Provincial Elections 2009 National Elections 2009Party

Party Votes and % Ward Votes and % Councillor Seats Party Votes and % Party Votes and %Party Seats %

1st ANC 335,930 87.0% 318,385 83,7% ANC 51 87.9% ANC 395,853 77.8% ANC 412,540 78.6%2nd UDM 39,328 10.2% 36,778 9,7% UDM 5 8.6% COPE 50,336 9.9% COPE 51,123 9.7%3rd IFP 4,776 1.2% 3,868 1,0% ID 1 1.7% UDM 49,032 9.6% UDM 47,902 9.1%4th PAC 4,028 1.0% 3,685 1,0% APC 1 1.7% DA 2,057 0.4% DA 2,551 0.5%

Other

2,227 0.6% 17,850 4,7% OTHER Other 11,357 2.2% Other 10,588 2.0%

Totals 386,289 100% 380,566 100% 58 100% 508,635 100% 524,704 100%

Figure 1: 2011 Local Government Election results and seat allocations:

The ANC is the leading party in terms of proportional DC40 Seats in OR Tambo, with 20 of 24 seats.

2. SERVICE DELIVERY4

3 UPDATE Aug’09: DC40 seats - ANC (88%) 21 seats, UDM (8%) 2 seats, ID (4%) 1 seat, Total 24 DC40 seats.

7

2.1 O.R. Tambo District Municipality Household Infrastructure

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 20080.000.100.200.300.400.500.600.700.800.90

Household Infrastructure OverviewEC - DC15 O.R.Tambo District Municipal-

ity

EC - DC15 O.R.Tam...

Inde

x

Source: IHS Global Insight Regional eXplorer version 474

O.R Tambo has the lowest access to infrastructure amongst districts in the province. An overview of household access to infrastructure in the district shows an improvement from a low level of 14% in 1996 to 36% in 2008. The main contributor to the increase in access is electricity infrastructure.

2.2 Sanitation

With regard to access to sanitation, the district municipality’s household access to hygienic toilets has gone up from 11% in 1996 to 27% in 2001. The improvement in access to sanitation in general in the Municipality is mainly due to the increase in the use of pit latrines with ventilation which was at 17% by 2008. About 35% of the households are still without toilets.

2.3 Water

There are low levels of access to clean water in the district. Access to piped water above RDP level increased from a low level of only 15% to 29% from 1996 to 2008. Similarly, there has been an increase as well in access to piped water below RDP level and about 15% of households are now getting this service. More than half the households do not have access to clean water.

2.4 Electricity

4 Sources: IHS Global Insight Regional eXplorer version 459; CoGTA, 2009: Basic Services Publication, Comparative Information on Basic Services, 2009 and Municipal Demarcation Board, 2008: National Report on Local Government Capacity, District and Local Municipalities, MDB Capacity Assessment, 2007/2008.

8

The increase in electricity connections is the biggest infrastructure achievement in the municipality. In 1996, household access to electricity connections was at a low level of 9%. Access has, however, increased over the years reaching 48% by 2008.

2.5 Refuse removal

There has been a slight increase in access to formal refuse removal service from 1996 to 2008 in the Municipality. Access has gone up from 6% in 1996 to 7% in 2008. Personal refuse removal also went up over the years from 60% in 1996 to 70% in 2008. The increase in personal removal increased the number of households without this service.

2.6 Service provider

O.R. Tambo district does not have authority and does not perform the electricity reticulation function. The district, however, has authority and performs potable water and sanitation functions. The district has no authority but is also performing the refuse removal, refuse dumps and solid waste disposal function and has some capacity to do so.

3. AUDIT OPINIONS

Table 3: Audit Opinions of the District and Local Municipalities

Municipality AuditOpinion2005/6

Audit Opinion2006/7

Audit Opinion2007/8

Audit Opinion 2008/9

Audit Opinion2009/10

O.R. Tambo District

Disclaimer Disclaimer Disclaimer Qualified Qualified

KingSabata Dalindyebo LM

Disclaimer Disclaimer Disclaimer Qualified Disclaimer

Mbizana LM Disclaimer Disclaimer Disclaimer Disclaimer DisclaimerMhlontlo LM Disclaimer Disclaimer Disclaimer Disclaimer DisclaimerNtabankulu LM

Disclaimer Disclaimer Disclaimer Disclaimer Adverse

Nyandeni LM Disclaimer Disclaimer Qualification Qualified Financially unqualified with findings

Port St Johns LM

Approval for contracting out obtained on 29 February 2008

Disclaimer Qualified Qualified Financially unqualified with findings

Qaukeni LM Disclaimer Disclaimer Audit outstanding

Adverse Qualified

Source: Auditor-General 2009 and 2011, see www.agsa.co.za

9

In 2009/10 only Nyandeni and Port St Johns local municipalities obtained financially unqualified audit opinions. In Mbizana and Mhlontlo local municipalities from 2005/6 to 2009/10 audit outcomes have not improved beyond disclaimers.

4. STATE OF LOCAL GOVERNMENT ASSESSMENT

4.1 Overview of findings on assessment in the municipality

4.1.1 Governance

Section 57 managers of this district require training in some areas. Serious challenges were observed on the areas of people management and in the monitoring of performance. The district’s communication strategy is not effective thus there are no proper channels of engaging with communities. The participation of traditional leadership in municipal council is limited for the reason that the process of promulgating legislation is not yet completed. The district needs to develop practical tools and systems to strengthen the area of monitoring and evaluation. The municipality has realized a need to develop awareness campaigns so as to curb service delivery protests. Since CDWs exist at Ward level and account at provincial level no communication or reporting is done at the district level this nonetheless is problematic as most government programmes fall through in terms of publicity because of this gap. It is therefore necessary to redefine CDW’s reporting and accountability channels so as to enhance community participation and awareness of government programmes.

A challenge of staff shortage believed to lead to the missing of targets was observed in this district however the recruitment process is currently underway to address this situation. The district requires assistance regarding intergovernmental relations (IGR). Councillors received training on Project Management, Computer programmes, oversight role and other developmental programmes. Nevertheless they still need to be exposed and trained to enhance their oversight capacity.

4.1.2 Financial Management and Viability

The district has for a number of years received qualified audit opinions and disclaimers. A financial management action plan to turn around institutional finances so as to receive positive audit opinions is in place. Various strategies such as debt collection strategy, revenue raising plan, and supply chain management policy are in place. The asset register still needs to be finalised. As a result of non appearance of some consumers names on the data base hence not billed, the district missed its target for revenue collection for financial year 2008/09. Payment of creditors has improved as service providers now receive their payments within 30 days. An Audit Committee was established by the district.

4.1.3 Service Delivery

Provision of water is still a challenge in the district however an effort was made by the municipality to intensify the supply of water through the development of a Rapid Response Strategy. Several water sources within the district are drying up and this

10

increases the number of households that lack access to water. Sanitation is another challenge facing the district. Sanitation backlog in this municipality is 262 450 and the reality is the district will not meet 2010 national target nor the 2014 universal target. Water stoppages are always experienced and they result from repeated electricity outages. Frequent sewerage leakages have been experienced and are a consequence of lack of maintenance.

The district has not fully aligned its IDP with the budget however some improvements have been realized in this area. Various stakeholders partake in the IDP review process but most local municipalities do not participate. The level of participation by sector departments is still a concern as few do participate while other departments send low ranking officials that would not add value to the process. In an attempt to ensure optimal participation of sector departments in the IDP review process the provincial Department of Local Government and Traditional Affairs (DLGTA) in collaboration with OTP and Provincial Treasury established an IGR Provincial Sector coordination forum.

5. INFRASTRUCTURE PRIORITIES OF THE MUNICIPAL TURN-AROUND STRATEGY

The O.R. Tambo District Municipality identified a number of challenges for infrastructure delivery per municipality in the Municipal Turn-Around Strategy and sessions with local municipalities.

Table 4: Infrastructure delivery in terms of the MTAS

Mbizana LM Ntabankulu LM

Ingquza Hill LM

King Sabata Dalindyebo LM

Mhlonto LM

Challenges Lack of a waste management plan

Shortage of personnel at Technical Services

Roads infrastructure

Electrification programme

Refuse removal

Uncertainty about responsibility on water provision

Electrification programme needs to be demarcated

The municipality has no statistics on how electricity is distributed

The refuse removal and disposal sites function needs to be revised

Landfill sites are unlicensed

DWAF, Province and the

No formal IGR structure between the Local Municipality and the District

The refuse removal unit is understaffed

There are no by-laws on solid waste

There is no good working relationship between Mhlontlo and OR Tambo District Municipality

The Municipality is not satisfied with the services being rendered by OR Tambo DM

The powers and functions allocated to OR Tambo

11

Department of Environmental Affairs need to speed up the process

An awareness campaign regarding the enforcement of by-laws is needed

There is no updated indigent register

should be reallocated to Mhlontlo Local Municipality

Equitable Share should shift from using an equity formula to take into account the real needs/backlogs of the municipalityThe Department of Local Government & Traditional Affairs and Department of Environmental Affairs prolongs the implementation of projects

6. MIG PROJECTS

Table 5: MIG projects

Municipality Project name Registered MIG funds

Total expenditure in the 2010/11 financial year on MIG funds

Project status (Registered/design/tender/construction)

Project category (e.g. water, sanitation, PMU)

Mbizana LM PMU R 36,778.70 No status PMUNtshamathe A/R R 608,427.50 R 554,317.12 Design & Tender Roads & s/waterGcinisizwe A/R R 3,786,250.00 R 1,910,155.60 Design & Tender Roads & s/waterMbabazo A/R R 314,525.00 R 228,188.58 Design & Tender Roads & s/waterKhananda A/R R 308,295.00 R 135,099.69 Design & Tender Roads & s/waterLuthulini A/R R 576,405.00 R 543,728.42 Design & Tender Roads & s/waterNkantolo A/R R 1,260,050.00 R 1,250,265.15 Design & Tender Roads & s/waterMajazi A/R R 437,850.00 R 112,611.89 Design & Tender Roads & s/waterNtinga A/R R 5,130,000.00 R 4,171,006.68 Design & Tender Roads & s/waterDotye A/R R 2,997,655.00 R 1,651,780.61 Design & Tender Roads & s/waterMgwede A/R R 5,130,000.00 R 1,453,294.61 Design & Tender Roads & s/waterNomlacu A/R R 218,925.00 R 208,963.71 Design & Tender Roads & s/water

Ward 11 C/H R 3,306,250.00 R 1,203,615.27 Design & TenderMulti purpose community halls

Ward 23 C/H R 3,306,250.00 R 616,276.11 Design & TenderMulti purpose community halls

12

Bizana Alphalt R 1,948,625.00 R 250,374.82 Design & Tender Roads & s/waterMpunzi Drift A/R R 2,450,550.04 R 912,058.20 Construction Roads & s/waterBholorhweni A/R R 1,601,047.58 R 284,288.88 Completed Roads & s/waterNtamonde A/R R 1,675,748.95 R 103,910.17 Completed Roads & s/waterCabane to Crestu A/R R 720,055.85 R 430,992.23 Design & Tender Roads & s/waterLucwaba A/R R 1,696,072.08 R 987,823.36 Construction Roads & s/waterTsawane A/R R 2,750,000.00 R 878,105.47 Completed Roads & s/waterSwana A/R R 3,088,568.00 R 112,807.67 Completed Roads & s/waterSidanga A/R R 5,500,920.00 R 1,603,220.53 Construction Roads & s/waterDidi A/R R 3,015,515.00 R 0.00 Completed Roads & s/waterCosta to Khathula R 1,247,010.55 R 0.00 Completed Roads & s/water Mahaha A/R R 2,750,000.00 R 159,997.36 Construction Roads & s/waterBaleni Phase 2 R 500,000.00 R 412,898.90 Completed Roads & s/water

Meje C. Hall   R 1,358,091.53 No statusMulti purpose community halls

Mbuthweni C.H   R 958,928.10 No status

Multi purpose community halls

Ntabankulu LM

Clean & Green Phase 2 R 3,000,000.00 R 962,385.09 registered Clean & Green

Ntabankulu Streetlighting R 1,443,000.00 R 763,196.15 registered

street / community lighting

Ntabankulu Streetlighting R 1,443,000.00 R 763,196.15 registered

street / community lighting

Ntabankulu Streetlighting R 1,443,000.00 R 763,196.15 Construction

street / community lighting

Construction of Ibisa-Fort donald Access Road R 3,737,785.00 R 871,143.24 Construction Roads & s/water

Source: All MIG projects, 2011 June

Both Mbizana and Ntabankulu submitted their June 2011 monthly reports on MIG projects. These reports have not been signed by the accounting officer as required by legislation. The three MIG projects – Project Management Unit, Meje C. Hall and Mbuthweni C. H. – in Mbizana were not reported on in June 2011. In Mbizana most projects are about roads and water and most of the projects are still to be designed and tendered. Of the five projects in Ntabankulu three are about street lighting and only one is about roads and water.

7. VULNERABILITY CLASSIFICATION

The DCoG Municipal Spatial Classification System was designed to develop municipal profiles according to spatial location, based upon results from indicator sets on functionality, socio-economic profile and backlog status. Its purpose is to inform a differentiated approach to municipalities.

The four municipal classifications developed by DCoG are:Class 1: Most vulnerable (57 local municipalities)Class 2: Second most vulnerable (58 local municipalities)Class 3: Second highest performing (58 local municipalities)

13

Class 4: Highest performing (58 local municipalities)

The seven local municipalities in the O.R. Tambo District can be classified as follow:

Table 6: Vulnerability Classification

Local Municipality ClassificationIngquza Hill ( Qaukeni)

Most vulnerable

King Sabata Dalindyebo

Second most vulnerable

Mbizana Most vulnerableMhlonto Most vulnerableNtabankulu Most vulnerableNyandeni Most vulnerablePort St Johns Most vulnerable

From this table it is evident that six of the seven local municipalities in the O.R. Tambo District fall into the most vulnerable category.

14