SUPPLEMENTARY TO FOCUSED PRESENTATION TO THE SELECT COMMITTEE ON APPROPRIATIONS SUPPORT PROVIDED TO...

SUPPLEMENTARY TO FOCUSEDSUPPLEMENTARY TO FOCUSEDPRESENTATION TO THE PRESENTATION TO THE SELECT COMMITTEE ON SELECT COMMITTEE ON

APPROPRIATIONSAPPROPRIATIONS

SUPPORT PROVIDED TO MUNICIPALITIES AND SUPPORT PROVIDED TO MUNICIPALITIES AND MUNICIPALITIES PLACED UNDER ADMINISTRATION MUNICIPALITIES PLACED UNDER ADMINISTRATION UNDER SECTION 139 OF THE CONSTITUTION, 1996UNDER SECTION 139 OF THE CONSTITUTION, 1996

28 January 2014Parliament, RSA, Cape Town

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OUTLINE OF THE SUPPLEMENTARY PRESENTATION

To provide additional information on the following:

1.MIG Support Initiatives

2.Operation Clean Audit

3.Section 139 Interventions

4.Local Economic Development

5.MISA Support2

1. MIG support initiativesChallenge Initiative

Underspending on the MIG programme primarily as a result of lack of adequate planning or planning related challenges. In certain instances lack of filling of Municipal Manager and critical section 56 manager posts as well as lack of timely communication and follow-up between municipalities and sector departments regarding submitted technical reports where there are issues that require compounded the planning challenge.

In Mpumalanga: The DCoG in partnership with the Mpumalanga Department of Local Government, MISA , DWA and Department of Public Works held intensive focussed advisory support sessions with each of the following municipalities to which solutions to the challenges were provided:

• Mbombela Local Municipality• Dr JS Moroka Local Municipality• Bushbuckridge Local Municipality• Dipaleseng Local Municipality• Mkhondo Local Municipality• Lekwa Local Municipality• Thaba Chweu Local Municipality

MIG support initiativesChallenge Initiative


In Limpopo: The DCoG in partnership with the Limpopo Department of Cooperative Governance, Human Settlements and Traditional Affairs (COGHSA), Provincial Treasury, MISA and DWA held intensive focussed advisory support sessions with each of the following municipalities to which solutions to the challenges were provided:

• Capricorn District Municipality• Polokwane Local Municipality• Sekhukhune District Municipality• Mogalakwena Local Municipality• Lephalale Local Municipality• Greater Giyani Local Municipality• Mopani District Municipality• Greater Tzaneen Local Municipality

MIG support initiativesChallenge Initiative


In Northern Cape: The DCoG in partnership with the Northern Cape Department of Cooperative Governance, Human Settlements and Traditional Affairs (COGHSTA) , the Northern Cape Provincial Treasury, Namakwa District Municipality, Pixley Regional Office COGHSTA, Frances Baard Regional Office COGHSTA, DWA and the South African Local Government Association (SALGA) held intensive focussed advisory support sessions with each of the following municipalities to which solutions to the challenges were provided:

•Karoo Hoogland Local Municipality•Hantam Local Municipality•Richtersveld Local Municipality•Khai Ma Local Municipality•!Kheis Local Municipality•Mier Local Municipality•Kamiesberg Local Municipality•Kareeberg Local Municipality•Siyathemba Local Municipality•Emthanjeni Local Municipality•Umsobomvu Local Municipality•Thembelihle Local Municipality•Joe Morolong Local Municipality•Gamagara Local Municipality•Magareng Local Municipality•Kai-Garib Local MunicIpality

1. Background2. Milestones3. Status of outcomes4. Support Initiatives5. Key challenges affecting Municipal Financial

Management and audit outcomes6. Capacity of provinces to support

municipalities

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2. Operation Clean Audit

Operation Clean Audit

Background

Operation Clean Audit 2014; was launched in 2009 as a specific response programme within the Local Government Turnaround strategy.

At the time 86 of the municipalities audited obtained disclaimers for the 2007/8 financial year and another nine municipalities adverse audit opinions.

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Operation Clean Audit milestones

The guiding vision for Operation Clean Audit is that by 2014 all municipalities will achieve unqualified audit opinions in their Annual Financial Statements. The programme milestones to realise the 2014 vision for municipalities were fixed as follows:

– Between 2010 and 2011, no municipality and municipal entity will obtain adverse and disclaimer audit opinions.

– At least 60% of municipalities and municipal entities will achieve unqualified audit opinions by 2012.

– There will be an increase in municipalities and municipal entities achieving unqualified audit opinions to at least 75% by 2013.

– 100% of municipalities and municipal entities will achieve unqualified audit opinions by 2014. 8

Current status of audit outcomes• The latest audit outcomes for Local Government that have been

released by the Auditor General (AG) pertain to the 2011/12 financial year. The AG is finalising the 2012/13 outcomes for release later this year.

• The 2011/12 outcomes reflect that 48% of municipalities and municipal entities achieved unqualified opinions against the 75% target of 2013 . In addition; the adverse audit opinions and disclaimers have not been eliminated. These were set to be eliminated by 2011.

• Only 3 provinces have managed to reach the 75% target for 2013 ; these are Gauteng, KwaZulu Natal and Western Cape at 84%, 77% and 85% respectively.

• The tables in the next 2 slides illustrate the status.

Current status of audit outcomes

AUDIT OPINION 2013 MILESTONE 2013 STATUS 3013

VARIENCEUnqualified Audit opinions

Minimum 75% 48% 27% Below target

Qualified Audit opinions and outstanding audits

Maximum 25% 52% 27% Below target

The Qualified Audit opinions & outstanding audits represent the following: Qualified Audit opinions

Maximum 25% 21% n/a

Disclaimers 0 24% Should be nilAdverse Opinions 0 1% Should be nilOutstanding Audits

0 6% Should be nil

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Status of audit outcomes per province

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PROVINCE Unqualified Audit opinions Qualified Audit opinions and outstanding audits

2013 MILESTONE

2013 STATUS 3013

VARIENCE

2013

MILESTONE

2013

STATUSEastern Cape Minimum 75% 31% 44% below

targetMaximum 25% 69%

Free State Minimum 75% 30% 45% below target

Maximum 25% 70%

Gauteng Minimum 75% 84% 9% ahead Maximum 25% 16%

KwaZulu Natal Minimum 75% 77% 2% ahead Maximum 25% 23%

Limpopo Minimum 75% 6% 69% below target

Maximum 25% 94%

Mpumalanga Minimum 75% 34% 41% below target

Maximum 25% 66%

Northern Cape Minimum 75% 22% 53% below target

Maximum 25% 78%

North West Minimum 75% 34% 41% below target

Maximum 25% 66%

Western Cape Minimum 75% 85% 10% ahead Maximum 25% 15%

Operation Clean Audit Support

• On an annual basis after the release of the Local Government audit outcomes by the Auditor General; the Department co-ordinates the development of a standard integrated support plan for Operation Clean Audit. (OPCA)

• The OPCA plan is developed after the analysis of the annual financial statements and audit outcomes of municipalities; in response to Section 131 of the MFMA.

• Accordingly; the attached 2013/14 plan (see ANNEXURE A) has been developed and approved by the CoGTA MINMEC for implementation in response to the 2012/13 Local Government Audit outcomes.

• The provinces share municipal finance support responsibilities which include the activities in the OPCA plan between the Provincial Treasuries and Provincial CoGTA’s

• The reporting on the implementation of the plan is quarterly to the Premier Co-ordination Forums / Committees; the Provincial MUNIMEC’s as well as a consolidated report to the CoGTA MINMEC.

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Operation Clean Audit SupportThe key areas of focus in the attached 2013/14 OPCA plan are the following:• Actions to ensure that quality Annual Financial Statements (AFS) submitted timeously.• Actions to ensure that key controls are in place and that corrective measures are

implemented to address key control deficiencies.• Actions to improve the efficient use of service providers• Actions to ensure the development and implementation of audit remedial plans• Actions to improve leadership involvement in guiding and directing the

implementation of OPCA initiatives• Actions to create a platform for consequence management, politically and

administratively.• Actions to improve performance reports• Actions to improve asset management, Records management, Supply Chain

Management, Unauthorised, irregular, fruitless and wasteful expenditure.• Actions to improve Information Technology Controls,• Actions to ensure improved HR practises• Actions to improve the capacity of DCoG and Provinces to support municipalities.• Actions to ensure effective governance - Audit and Public Account Committees

Key challenges affecting Municipal Financial Management and audit outcomes

Although progress has been made within the municipal finance arena, municipalities face a number of historical challenges. These include:

• A history of receiving qualifications and inability to turn them around due to unresolved historical transactions (legacy issues) that affect the opening balances.

• The instability within the municipality, both at a political level as well as administratively.

• The high vacancy rate of CFO’s and other key personnel due to the suspensions and resignations.

• Lack of funds for asset management to facilitate a complete disclosure of infrastructure assets.

• Non functional MPACs as well as MPAC chairpersons being changed regularly which affect the committee’s stability and progress.

• Lack of capacity in Internal Audit units and inadequate functionality of Audit Committees.

• Inadequate information communication technology (ICT) systems to support financial management.

Capacity of provinces to support municipalities

• The capacity of certain provinces to support municipalities is of great concern.

• There seems to be a direct correlation between the provinces with substantive support programmes, dedicated personnel to support municipalities as well as funds for support interventions and the level of improvement in the audit outcomes over the OPCA period.

• Gauteng, Western Cape and KwaZulu Natal clearly demonstrate this correlation; of the 9 provinces whose support plans were analysed; they have the most comprehensive provincial CoGTA support programs for OPCA.

• These are also the provinces who currently meet the 2013 OPCA target of 75% unqualified audit opinions.

1. Nature of the Challenges2. Support Initiatives3. Detailed and other S139 initiatives4. Development of Intergovernmental Support

and Monitoring Bill (IMSI).

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3. Section 139 interventions

PROVINCE: KZN

DATE OF INVOCATION

DATE OF TERMINATION

REASONS

Indaka Local Municipality

March 2010 Renewed – Still in progress

Governance: Lack of institutional leadership amounting to poor performance;Weaknesses in performance reporting directly affecting the oversight role of council over the executive and management.

Financial: Continuous financial irregularities resulting in the municipality receiving an audit disclaimer;Continuous failure to respond to audit findings and implement audit recommendations.

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S 139 - Nature of the Challenges

PROVINCE: KZN

DATE OF INVOCATION

DATE OF TERMINATION

REASONS

Umvoti Local Municipality

July 2013 Still in progress Governance: Continuous struggle and instability due to political differences of elected councillors which also permeated to staff members; Unlawful removal of elected office bearers and unlawful election of new office bearers, including the Speaker; Disruption of council meetings, including the passing of the budget, rendering the meetings in-quorate as a result of walkouts;State of dysfunctionality had forced the presence of members of the SAPS at council meetings and the closure of the municipal offices.

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PROVINCE: KZN

DATE OF INVOCATION

DATE OF TERMINATION

REASONS

Imbabazane Local Municipality

January 2013 Still in progress Governance: Political instability impacting on various aspects of administration and resulting in unstable governance;Tensions and disagreements in council resulting in various walkouts by political parties; Irregular decisions by council, such as continuing employing the Municipal Manager although his contract had terminated by operation of law ;Non adherence to policy, principles and frameworks applicable to council and the administration, such as instances where not all councillors were notified of meetings.

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PROVINCE: KZN

DATE OF INVOCATION

DATE OF TERMINATION

REASONS

Abaqulusi Local Municipality

March 2013 Still in progress Governance: Municipality was without a municipal manager from 31 January to 05 March 2013 and other senior positions remained vacant;Council was failing to fulfil its executive obligations;Council failed to accept an offer of support from the provincial government.

Financial: Municipality received a disclaimer audit opinion for the 2011/12 financial year for various reasons, such as high levels of unauthorised expenditure;Municipality’s annual report not compliant with section 121 of the MFMA.

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PROVINCE: KZN

DATE OF INVOCATION

DATE OF TERMINATION

REASONS

Umzinyathi District Municipality(MFMA S136)

April 2013 Still in progress Governance: Appointment of staff was not conducted in line with the recruitment policy, resulting in non-suitably qualified staff being employed and the appointment of a consultant as CFO ;Failure to comply with the section 139(1)(a) directive issued by the Provincial Executive in relation to the municipality’s obligations to Uthukela Water.

Financial: Lack of budgetary control which was evident from the income and expenditure statement for the 2011/12 financial year , reflecting over-expenditure;Material discrepancies between section 71 reported figures for the 2011/12 financial year and figures in the financial statements;Non-payment for services rendered by Uthukela Water.

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PROVINCE: KZN

DATE OF INVOCATION

DATE OF TERMINATION

REASONS

Uthukela District Municipality(S136)

May 2013 Still in progress Financial: Disclaimer audit opinion in the 2011/12 financial year which highlighted significant deficiencies in financial management including insufficient cash to cover operations, under-budgeting, discrepancies between section 71 reported figures and figures in the financial statements; unspent conditional grants of R126,3 million, irregular expenditure amounting to R14, 6 million and weak budgetary control which resulted in unauthorized expenditure of R62,147 million;Disaster Relief Fund of R4 million not spent for the purpose; inability of the municipality to pay its creditors.

Governance: Failure to ensure that the municipality was structured and organised in a manner suitable to undertake its constitutional obligations. 22

PROVINCE: KZN

DATE OF INVOCATION

DATE OF TERMINATION

REASONS

Ugu District Municipality(MFMA S136)

May 2013 Still in progress Financial: The Auditor General’s report for the 2011/2012 financial year highlighted that the municipality regressed from an unqualified audit opinion to a qualified audit opinion; Unauthorised expenditure of R45, 4 mil, an irregular expenditure of R18, 4 mil, current liabilities exceeded current assets and conditional grants were not cash-backed.134 cases of deviations of the SCM regulations, high salary and overtime costs; the ratio of current assets to current liabilities was below the norm of 2:1; failure to pay creditors within 30 days, and loans totalling an amount of R285, 5 mil.

Governance: Numerous changes in top management with middle managers acting in critical posts. 23

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PROVINCE: NW

DATE OF INVOCATION

DATE OF TERMINATION

REASONS

Maquassi Hills Local Municipality

April 2013 Still in progress Governance:Poor governance and management of council matters by council;Infighting in council, which grossly affects administration and service delivery (Poor relationship between Mayor and Speaker);Poor leadership and oversight by Council;Breach of code of conduct by Councillors;Poor relations between council and the administration;Deterioration of service delivery resulting in sporadic service delivery protests;Poor administrative leadership and lack of capacity.

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PROVINCE: NW

DATE OF INVOCATION

DATE OF TERMINATION

REASONS

Ditsobotla Local Municipality

April 2013 Still in progress Governance: Poor governance and management of council matters by council (Infighting and divisions in council);Poor leadership and oversight by council (Appointment of the Municipal Manager was highly irregular);Breach of Code of Conduct by Councillors;Poor relations between council and the administration (Poor relationship between Mayor and Municipal Manager);Deterioration of service delivery;Poor administrative leadership and lack of capacity.

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PROVINCE: NW

DATE OF INVOCATION

DATE OF TERMINATION

REASONS

Matlosana Local Municipality

April 2013 The council of Matlosana on 22 November 2013 accepted S139 intervention due to financial distress. At a meeting between the MEC and mayoral committee on 17 Dec 2013 it was resolved that the intervention team should immediately conduct an assessment on the financial status of the municipality to ascertain the areas of focus during the intervention. The report of the assessment will be presented to the MEC on the 17th January 2014, thereafter to the mayoral committee. Awaiting the response of the NCOP select committee on the letter from Province.

Financial: Financial crisis which had resulted in municipality not honouring its statutory obligations during the 2012/13 financial year;Non-payment of the bulk electricity and the bulk water accounts to Eskom and Midvaal Water Board;Failure to collect municipal rates resulting in the debtors book standing at about R960 million;Use of revenue from sale of electricity to subsidise other services for which the consumers were not paying;Poor administrative leadership and lack of capacity.Governance: Non-enforcement of debt collection and credit control policies; Lack of management and leadership capacity.

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PROVINCE: MPUMALA-NGA

DATE OF INVOCATION

DATE OF TERMINATION

REASONS PROGRESS

Emalahleni Local Municipality

April 2013

Still in progress Four main findings- Infrastructure and service

delivery collapsed; Municipal capacity to

function disintegrated; Financially at the point of

collapse; Break down in trust

between communities and government.

Governance: Rrelationship between the

Mayor and Municipal Manager had deteriorated to such an extent that it had paralysed the functioning of the municipality;

LLF not functional; Interference of unions in

administrative functions; Deterioration of audit

outcome (Disclaimer).

Labour stabilised, agreements with unions and staff consultation process, LLF established.

Investigation into allegations of corruption, fraud and collusion initiated.

Performance management system being developed- aim to change culture to being performance orientated.

HOD forum launched. Members of mayoral committee

with directors pulled in as part of turnaround team.

Shift system reviewed and agreement signed.

Section 80 committees established.

Staff capacity strengthened. Audit Remedial Action Plan

Reviewed.

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DATE OF INVOCATION

DATE OF TERMINATION

REASONS PROGRESS


April 2013

Still in progress Restoring relations with communities :Series of public meetings. Programme from administration to visit wards to discuss issues.Open door to delegations from communities.Relationship with local press renewed, using news papers to convey messages.Social media employed as instrument to get immediate feed back and to give real time information. Extremely positive response.Weekly discussions by directors on issues on Emalahleni FM.Publishing challenges and programmes to communitiesIn process of developing new call centre to promote efficient communication. Funding from donors committed for this purpose.Engagement with key community groups on issues e.g. Planning forum to mobilise expertise. Mining sector/ organised business. Informal settlements – responded to

demands within time lines and agreed on a joint working committee.

Ensuring that personal attention to reported problems are provided and that teams respond immediately to service delivery reports.

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DATE OF INVOCATION

DATE OF TERMINATION

REASONS PROGRESS


April 2013

Still in progress

Service Delivery• Waste management sporadic and

severely impaired – only one truck out of 15 operating.

• Water provision poor and quality shocking – interruptions 3 out of every 7 days, at least 30% shortfall, water bursts daily.

• Road infrastructure disintegrating – not a street without potholes or with working robots.

• Electricity supply interrupted – every second day, 20% overload.

• Sanitation problematic –pollution levels high and sewage spillages daily.

• No law enforcement - Illegal activities escalating.

• Housing backlog – 27 informal areas.

• Maintenance of assets non existent.• No capacity for growth or for even

to service current population

The immediate provision of potable water has been stabilised through better system management.

Problems on network addressed with short turnaround times. Total wastage of water reduced with 60%.

Sanitation remains an issue and strategy has been in the short term to ensure quicker responses to problems. Turn around improved and long outstanding issues being addressed.

Waste removal back on track as the main problem of vehicles have been resolved.

Roads – pothole programme developed and own budget supplemented by Provincial Department of Public Works.

Electricity plans for improvements being made. Immediate focus on immediate problem solving as problems occur

Vehicle fleet management changed and fleet getting in shape. However, still a challenge.

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DATE OF INVOCAT-ION

DATE OF TERMINATION

REASONS PROGRESS


April 2013 Still in progress

Financial: Financial instability – Disclaimer:•Creditor payments – R346 million outstanding.•Debtors’ at 79%. Total outstanding R981 million.•Cash-flow estimated to be negative R93,7 million.•Total net negative R439,8 million.•Supply chain management waste full and severe issue.Income unsatisfactory:• Nearly R40 million under

recovery on water and electricity.

• 37 000 households not metered for water, 13 000 electricity not metered.

• Large scale illegal water and electricity connections.

•Expenditure out of control• Over utilisation of

contractors.• Overtime abused• Purchases inflated

Financial turn around strategy adopted. Audit plan developed and issues being

addressed. Aim at addressing all issues which led to a disclaimed audit.

Financial controls over supply chain strengthened.

Cash flow projections done daily. Cash flow still negative but improving. Debtor management improved. Clean up creditors, e.g. agreement with

Eskom. Over R20 million in long outstanding debt

paid to creditors. 60% of creditors paid within prescribed

dates to date. Additional financial expertise employed. Programme launched to ensure all are

metered. Need to replace and install 37 000 water meters and 13 000 electricity meters.

Addressing illegal connections. New tariff structure approved. Indigent

population’s plight relieved. Fines being imposed and enforced . More

than R1 million already levied. With above initiatives aims at improving

revenue stream with R25 million per month and reduce expenditure with R5 million per month.

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DATE OF INVOCATION

DATE OF TERMIN-ATION

REASONS PROGRESS

Bushbuck-ridge Local Municipality

April 2013 Still in progress

Governance: •Critical vacancies in municipality•Disclaimer Audit OutcomeFinancial: •Inability of the municipality to honour its financial commitments to the Bushbuckridge Water Board, resulting in the latter cutting off its water supply. • The outstanding debtors was an

amount of R993mil and the outstanding creditors amounts to R351mil. The R351mil is unconfirmed and might increase.

• The Municipality billed consumers up to March 2013 a accumulative amount of R298mil and only collected an amount of R50,6 mil for the same period. The MIG allocation for the year was R286mil of which all was transferred to the municipality. Only R93mil spent.

• The balance of R192 mil was not cash backed.

• SCM unit not functional.

Technical Director Appointed

Audit Remedial Action Plan Developed

National, Prov. Treasury and COGTA developed financial turn around strategy

Tariff structure reviewed Data Cleansing exercise in

process IT environment audited

and support provided to link cash offices electronically

SCM units established and trained

MIG projects prioritised and service providers appointed

Systems developed and implemented.

The Municipality’s financial position is steadily improving.

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DATE OF INVOCATION

DATE OF TERMINATION

REASONS PROGRESS


April 2013

Still in progress

Service Delivery:•municipality was unable to discharge its responsibility of providing its communities with constant water, refuse removal and electricity.•The failure to provide water to its communities has been the low point in terms of its financial capability.•Failure to provide water is as a result of a crisis in its financial affairs; it is in serious or persistent material breach of its obligations to provide basic services and is unable to meet its financial commitments.•Bushbuckridge Water Board cut water supply to the municipality as from the 23 November 2012 due to municipality admitting to be unable to honour its commitments.•After several meetings the water supply has been restored for few days with no end in sight.

The Minister and the Premier have intervened in accelerating the implementation of the water reticulation programme by engaging Rand Water to become an implementing agent.

The tri-partite agreement is about to be signed, but Rand Water has already begun with the construction process.

The Acornhoek bulk line has been completed

The rest of the water bulk infrastructure will be completed this financial year

Dedicated maintenance teams are being set up. The existing municipal water tankers fleet is being overhauled and about 4 new trucks will be procured the next two month.

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DATE OF INVOCATION

DATE OF TERMINATION

REASONS PROGRESS


April 2013

Still in progress As far as Bushbuckridge Water Board is concerned, the Municipality is concluding a negotiated process to repay BWB over a period of time in such a way that the cash flow situation of BBR does not deteriorate further, and the debt does not escalate at the same time.

PROVINCE: WESTERN CAPE

DATE OF INVOCATION

DATE OF TERMINATION

REASONS

Oudsthoorn Local Municipality

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Challenge Initiative

S 139: Access to provincial data and information (e.g. Administrator reports, close-out reports, correspondence and performance data)

The Joint support initiative; deepen institutional systems and processes to manage monitoring and reporting on S139 interventions at national level

Enhance Financial and Governance Competences

Consolidate the provision of initiatives by provinces, National Treasury, Auditor-General, LGSETA, IMFO and determine areas not yet being addressed / the reason why impact is not yet requisite and put a inter-sectoral plan in place to address challenges.

DETAILED S139 INITIATIVES


Imbabazane DM, Umvoti LM, Ditsobotla LM, Maquassi Hills LM, Mquma LM and Emalahleni LM: Challenges with council; political differences of the elected councillors which also permeated to staff members; unlawful election of office bearers, including the Speaker; disruption of meetings as a result of walkouts and poor governance and management of Council matters; poor leadership and oversight by council; breach of code of conduct by councillors; poor relations between council and the administration; deterioration of service delivery.

Two factions, one led by the Executive Mayor and the other led by the Speaker and the Chief Whip, were running two parallel administrations; contraventions of the provisions of the Local Government Municipal Structures Act of 1998 and the Council Rules of Order, respectively.

Governance: Develop comprehensive Councillor Handbook in collaboration with SALGA and Provinces. Conduct workshops to implement Councillor Handbook in collaboration with stakeholders Monitor implementation.

Mobilise political intervention where necessary.

OTHER S 139 SUPPORT INITIATIVES


Ugu DM and Uthukela DM:Majority of staff have inadequate skills

SD: Governance:Mobilise support from LGSETA to determine whether municipal workplace skills plan is addressing the requisite skills gap. Mobilise additional financial resources to fast track skilling for critical posts.

Uthukela DM

IDP not credible and failure to approve the annual budget and the IDP for 2013, respectively.

Send a team to facilitate the address of IDP and SDBIP challenges.

Uthukela DM: Excessive amounts .spent on overtime

Using SALGA HR Policy Handbook and in collaboration with SALGA assist the municipality to develop an Overtime Policy that addresses the challenges they face. Monitor approval and implementation of the Policy.

OTHER S139 SUPPORT INITIATIVES

OTHER S 139 SUPPORT INITIATIVES


Umzinyathi DM, Matlosana LM, Indaka LM, Emalahleni LM and Bushbuckridge LM:

Staff not having access to accounting systems and lack of monitoring of work as service providers get paid without having done the work and financial crisis resulting in municipality not honouring its statutory obligations;

Non-payment of bulk electricity and bulk water accounts to Eskom and Midvaal Water Board; failure to collect municipal rates resulting in the debtors book standing at about R960 million; use of revenue from sale of electricity to subsidise other services for which consumers were not paying; poor administrative leadership and lack of capacity; non-enforcement of debt collection and credit control policies, respectively.

Finance and Governance: Mobilise support from National Treasury and LGSETA to address capacity constraints.

Mobilise political intervention where necessary.

S 139 – Development of the Intergovernmental Monitoring, Support and Interventions Bill (IMSI):

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Objectives of the Bill:To provide for support and intervention measures to strengthen the

capacity of each sphere to fulfil its executive obligations in respect to oversight and support of municipalities

Stabilise the interventions environment through:

a) Clearer procedures and processes for undertaking both S100 and S139 interventions;

b)To establish, together with DPME, a range of sector norms and standards for service delivery to better define executive obligations;

c)To ensure that interventions are used as a ‘last resort’ and prevent ‘conflictual interventions’ through providing pre-intervention measures for provision of support.

d)Providing for a consistent and uniform approach to the application of an intervention at both provincial and local level (and rationalising procedurally, re both S139 and S 100)

e) Section 139 (8) legislation would complement the provisions of the Municipal Finance Management Act, which provides a detailed framework for section 139 (4) and (5) ‘financial’ interventions.

An integral part of COGTA’s efforts to realise the objectives of LGTAS.

1.Accelerating service delivery 2.Enhancing Good Governance 3.Promoting sound financial management 4.Fighting corruption 5.Facilitating sustainable infrastructure development.

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4. MISA Strategic Focus

Local Government Skills Challenges Findings from Empirical Studies

• Migration of older experienced Built Environment professionals out of local govt

• Replacement by younger relatively inexperienced officials (3 -5 years minimum average experience)

• Majority unregistered with statutory professional Body (unregulated)• High Vacancy Rates(35 -50%)• Increased Technical workloads & falling staffing levels • Municipal Technical departments unable to spend MIG allocations• Frequent budgetary rollovers of MIG • General inability to cope with the demands of municipal operations

and maintenance,• Frequent sewage spills, water quality problems and refuse non-

removal• Inability to cope with services for developments/ large housing

projects due to a lack of bulk services and support bylaws• High water / electricity losses• Poor Metering management• Poor revenue income streams and collection rates (growing indigents)• Increased service delivery protests

Designated Technical Profession/ Trade

Professional Registration Body

Engineers (Civil, Electrical, Mechanical, Electromechanical)

Engineering Council of South Africa (ECSA)

Quantity Surveyors SA Council for the Quantity Surveying Profession (SACQSP)

Construction Project Managers SA Council for the Construction Project Management and Construction Management Professions (SACPCMP)

Town and Regional Planners SA Council for Planners (SACPLAN)Water and Wastewater Practitioners

Department of Water Affairs (DWA) Water Institute of Southern Africa (WISA)

Artisans National Artisans Moderating Body (NAMB)Property Valuers SA Council for Property Valuers Professions (SACPVP)Natural Scientists SA Council for the Natural Scientific Professions

(SACNASP)

Key Technical Professions Targetted

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Sub-Programme ObjectivesTo create a pool of Artisans for efficient operations and maintenance of

infrastructure in local government

Current Support Deployed – Total x231 Apprentices deployed (FET graduates)

+ New Deployments - Total x58 Apprentices deployed (graduates)

Total Deployments x289 Apprentices deployed

Municipal Officials Under Apprenticeship – x87 municipal officials

Current Skills SetsElectriciansBricklayers & PlumbersMotor and Diesel Mechanics Fitters & Turners

New Skills SetWater Process Controllers – (Water & Wastewater)Landfill Site operators

Artisans Development Programme

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APPRENTICE DEPLOYMENTS TRADE

ProvinceDistrict Municipality

Local Municipality Electrician Plumber

Motor Mechanic

Diesel Mechanic

Bricklayers Fitter

Fitter and

turner Total

Limpopo Capricorn Blouberg 6 6

Capricorn Modimolle 3 3

Capricorn Polokwane 10 9 19

Vhembe Mutale 3 3

Vhembe Thulamela 3 3

TOTALS 19 15 0 0 0 0 0 34

Eastern Cape Joe Gqabi Maletswai 0

Joe Gqabi Senqu 3 1 4

King Sabata Dalindyebo OR Tambo 5 3 8

Amathole Mnquma 0

TOTALS 8 0 0 0 4 0 0 12


ProvinceDistrict Municipality Local Municipality

Electrician

Plumber

Motor Mechan

ic

Diesel Mechan

icBricklay

ers Fitter

Fitter and

turner Total

Northern Cape Francis Baard Sol Plaatjie 4 4

Namakwa Kamiesberg 1 1

Pixley Ka Seme Karreberg 1 1

Siyanda Kai Garib 5 1 3 2 11

TOTALS 11 1 0 3 0 0 2 17Western Cape Stellenbosch 0

Kannaland 0

Hessequa 0

TOTALS 0 0 0 0 0 0 0 0North West Rusternburg 1 1

Madibeng 1 1 2

Moretele 2 2


Province District MunicipalityLocal Municipality Electrician Plumber

Motor Mechanic

Diesel Mechanic Bricklayers Fitter

Fitter and

turner Total

KZN Mgungundlovu Msunduzi 25 2 0 0 0 0 0 27

Mpofana 1 1

Mandeni 4 4

New Castle 17 1 4 22

Illembe 6 6

Kwadukuza 22 2 24

TOTALS 69 9 0 2 4 0 0 84Mpumalanga Albert Luthuli 9 1 10

Emalahleni 1 1 Lekwa 10 5 4 19

Thaba Chweu 14 14

Umjindi 4 4 Bushbuckridge 6 6

Nkomazi 2 2

GRAND TOTALS 167 41 0 11 8 0 3 230

Technical Bursary Programme

• Established by Cogta in 2010• Transferred to MISA in 2012

• Bursary to fund undergraduate studies - National Diploma/ Bachelors degree studies in Civil, Electrical Engineering, Town Planning & Geographical Information Systems (GIS) disciplines.

• Historically disadvantaged candidates from poor background • Eligibility: Matriculants meeting minimum university entrance

requirements • Total graduates currently funded - x91 graduates

Graduating bursary holders contracted to municipal Technical departments for service delivery and skills pipeline

Technical Training Programmes

Core Technical Modules•Construction Management•Asset and Maintenance Management •Supply Chain Management •Road Traffic Engineering and Management•Water Resources Engineering and Management•Solid Waste Management•Environmental Management•Town and Regional Planning

Core Management ModuleStrategic Management and Leadership

Electives for Technical Managers (1 Module)Fleet Control and Management Infrastructure Strategic Project ManagementProject Quality and Risk Management

Certificate Programme in Infrastructure ManagementPost Grad Diploma / Certificate Level

To assist Technical Directors /junior/ middle managers without minimum academic qualifications

Programme to be delivered with full academic credits by all x7

Universities of Technology with common curriculum, full academic credits nationally, subsidized by

MISA

Technical Training short courses , subsidized by MISA, about to start in January 2014

x12 municipal officials trained in Japan through MISA-JICA partnership

Young Professionals (YP) & Experiential Learning Programmes

YP Programme

•3 year structured work-based internship development programme leading to professional registration•Focused on Civil Engineering & Town Planning graduates from Universities/ University of Technology with 1 year or more working experience•Professional registration + absorption for building municipal internal capacity.

•x40 graduates underway to register as Technician professionals with statutory professional bodies ECSA, SACPLAN

Experiential Learning Programme

•18 months structured work-based internship development programme for new built environment graduates•Focused on Civil Engineering, Electrical Engineering, Waste Management, Construction & Town Planning graduates from Universities/ University of Technology with less than 1 year work experience•Exposure for employability + absorption for building municipal internal capacity.•x151 graduates currently being deployed nationally

Mentoring Towards Registration

Providing mentoring support to municipal officials to ensure the professional registration with professional registering bodies(ECSA; SACPLAN; SACPCMP). MISA Investment-Direct Mentoring CostTechnical Training RequiredSecondment WorkplaceMunicipal InvestmentS & T Accommodation during Secondment

1. Minimum academic qualifications in line with statutory requirements (National Diploma/ B. degree) 1. Five years or more relevant working experience 2. Eligibility for registration as Candidate 3. Existing professional registration (candidacy) with relevant statutory body

will be preferred.

Province YP’s Mentoring Towards Professional Registration

Experiential Learning

Civil Planning Civil Electrical Construction Planning Civil Waste Management

Electric Planning

Gauteng 2 3 2 7

Limpopo 2 2 5 4 2 12 2 2

Mpumalanga 2 4 11 3 10 11 2 2 7

Kwazulu Natal 2 6 10 7 7 13 19 3 9 7

Free State 2 2 7 2 2 7 2 6

Eastern Cape 3 9 12 3 6 8

Northern Cape 3 4 1 2

North West 2 6 3 4 6 8 7

Western Cape 2 1 1

Total 20 20 48 13 16 30 74 10 29 38

Planned Deployments 2013/2014 FY

Local Economic Development

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a) The role of local government in promoting economic development is derived in the Constitution (Sec 152c and 153a): local government must promote social and economic development; it must structure and manage its administration, and budgeting and planning processes to give priority to the basic needs of the community and to promote the social and economic development of the community.

b) The role is refined in the 1998 White Paper on Local Government. It is stated that the powers and functions of local government should be exercised in a way that has a maximum impact on, among other things, the growth of the local economy.

c) This responsibility is discharged through the Local Economic Development (LED) function of municipalities, and is a key component of the municipality’s Integrated Development Plan (IDP).

d) Although the White Paper states local government is not directly responsible for creating jobs, this sphere is still responsible for taking active steps to ensure that the overall economic and social conditions of the locality are conducive to the creation of employment opportunities.

e) The role of DCoG is to support municipalities in the design and implementation of their local economic development function and strategies.

DCoG Support Programmes in Local Economic Development

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Programme Progress

Business Adopt A Municipality

A total of 12 municipalities have been supported by the private sector. SANTAM has assisted municipalities in disaster management (fire). Fire-fighting implements were procured and delivered to the municipalities, and training was conducted, following an extensive needs assessment. SAB Miller and the Rand Water Foundation have provided training in the area of waste water treatment works and water infrastructure management. Mercedez Benz has provided technical advice on ICT systems, using their own model, and Buffalo City is currently testing the implementation of the recommendations. Eskom has identified 18 municipalities to be supported together with MISA. Eskom has selected 27 municipalities to be supported mainly in, among other areas, maintenance and rehabilitation of existing infrastructure; revenue management and tariff setting and skills development.

Red Tape Reduction (with the dti & SALGA)

Municipalities have undergone red tape accredited training to build skills and capacity around identifying and dealing with Red. 10 of the 12 municipalities selected have developed red tape action plans following an extensive identification of Red Tape issues. Identified red tape issue include poor communication of information; lengthy decision making timeframes; Supply chain Management (e.g. lack of local procurement). National Guidelines for Red Tape Reduction were produced using the pilot study in 12 municipalities. A national roll-out programme led by provinces is currently underway.

Business Development Forums

Forums were supported in the West Coast DM, Sedibeng DM, Cacadu DM and Steve Tshwete DM. All the forums are at differing levels of functionality. Support provided entails facilitating the formation of the structure or facilitating ongoing engagement. Through engagement, the WC DM has identified three catalytic interventions (Skills Development and Agriculture). In Sedibeng, lack of waste water treatment has been identified by the forum as an impediment to business development. Cacadu DM will launch its forum in February 2014

Capacity Building (funded by the dti)

LED Assessments were done in 7 municipalities to determine their level of LED functionality. Two municipalities were assisted with economic profiling. 5 municipalities were assisted with leadership training and mentorship.

NDMC support initiativesNDMC support initiatives

54

Approved Limpopo MDG

Municipality Amount (Rm)

Vhembe District Municipality R 41 501 200

Mutale Local Municipality R 24 700 000

Thulamela Local MunicipalityR 20 000 000

Makhado Local Municipality R 1 460 000

Total R 87 661 200

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Approved KZN MDG

Municipality Amount Ugu District Municipality Allocation R 9 177 230Vulamehlo Local Municipality R 2 900 000Umdoni Local Municipality R 2 000 000 Umzumbe Local Municipality R 8 200 000Emnambithi /Ladysmith Municipality R 8 486 000Okhahlamba Local Municipality R 1 860 800Ethekwini Metropolitan Municipality R 1 500 000Total R 34 124

030.00

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Approved North West PDG

Items Amount Fodder R 35 000 000Water Reticulation Infrastructure R 8 630 000

R 43 630

000.00

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MDRG

2013/14 (R’000)

Eastern Cape municipalities 111 350 Nelson Mandela Bay 71 961 Ndlambe 15 353 Kouga 4 477

Koukama 8 439

Makana 8 724

Sundays River Valley 2 396

Western Cape municipalities 6 688

Langeberg 104

Eden District 6 584

Limpopo municipality 264

Maruleng 264

KwaZulu-Natal municipality 38

Umvoti 38

Total 118 340

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Sector Grants 2010/11

2013/14(R’000)

Comprehensive agricultural support programme grant 296 085

Northern Cape 264 000

North West 4 500

Limpopo 15 000

Free State 9 000

Eastern Cape 1 500

Gauteng 2 085

Education infrastructure grant 159 412

North West 4 208

Limpopo 20 405

Mpumalanga 1 945

Kwa Zulu-Natal 15 941

Free State 6 121

Eastern Cape 110 791

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Sector Grants 2010/11

2013/14(R’000)

Provincial Roads Maintenance 369 103


North West 8 120

Limpopo 61 382

Kwa Zulu-Natal 45 732

Free State 33 478

Eastern Cape 125 199

Gauteng R 1 439

Human Settlements Development Grant 300 000


North West 26 400

Limpopo R35 790

Mpumalanga R 600

KwaZulu-Natal 51 900

Free State 73 500

Eastern Cape 94 500

Gauteng 60

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Sector Grants 2011/12 & 2012/13 2013/14(R’000)

Comprehensive agricultural support programme grant 4 295Limpopo 2 475Mpumalanga 303Western Cape 1 517

Education infrastructure grant 12 603KwaZulu-Natal 7 574Mpumalanga 4 866Limpopo 163

Health facility revitalisation 274KwaZulu-Natal 62Mpumalanga 212

Provincial roads maintenance 41 565KwaZulu-Natal 1 615Limpopo 4 462Mpumalanga 18 315Western Cape 17 173

Human settlements development grant 44 454KwaZulu-Natal 40 156

Limpopo 1 368

Mpumalanga 1 764

Western Cape 1 166

Total 103 191

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THANK YOU.THANK YOU.

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