DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS MSA … · department of local government &...

MSA SEC 47 REPORT 2014/ 15 CONSOLIDATED PERFORMANCE REPORT OF MUNICIPALITIES

DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS

MSA SEC 47 REPORT 2015/ 2016CONSOLIDATED PERFORMANCE REPORT OF MUNICIPALITIES

Contents

1. SECTION 1: INTRODUCTION ................................................................................................................ 4

1.1 Foreword by the MEC ................................................................................................................................ 4

�� ...................................................................................... 7

�� !��"�#��$�� ............................................................................................................................ 10

��%��&��$��$�� ............................................................................................................................ 13

��'�($��$��$��$� .............................................................................................................................. 14

��)��$� ��$��!��$�� ........................................................................................................... 14

��*��+�$��,��!�� $��-�/�� 2�) ............................................................................. 15

SECTION 2: MUNICIPAL PERFORMANCE REPORT ........................................................................................18

��689�:"� ��(��!��;�� !$�� .................................................................... 18

��(��!��9� ��! ............................................................................................................. 18

��,;=�� ................................................................................................................................. 20

��!!�/��!!�� $�� .......................................................................................................... 25

��%�?��$��,��!�� ........................................................................................................ 27

��'�;��$� ......................................................................................................................................... 28

�� ........................................................30

��@� $��,�� ........................................................................................................... 30

��(��$�� !��9�$� .................................................................................................................. 32

��?��$��,��!�� ........................................................................................................ 33

��%�;��$� ......................................................................................................................................... 33

��!� ��" �� #!"�$ .........................................................................................34

%��(�� $��(�� ............................................................................................... 34

%��A��$��&$� ��$�� !��$&�� B,;=D ....................................... 38

%��?��$��,��!�� ........................................................................................................ 38

%�%�;��$� ....................................................................................................................................... 39

%�� &�� '��(��)��*�� ........................................................................41

'��,��!�8�$��@�� 9� .............................................................................................................. 41

'��/��!�H�� .................................................................................................................................... 48

'��/��!�� ............................................................................................................................. 50

'�%��@�� .............................................................................................................................. 52

'�'�� ........................................................................................................................ 54

'�)��$� ................................................................................................................................................ 57

'�*�=$�� .............................................................................................................................. 59

'�I�/��$� .............................................................................................................................................. 60

'�K�� L$�� #$� ................................................................................................................ 62

'��2�� L$�N��"$�� ................................................................................................... 63

'��/� ��H!$+........................................................................................................................................... 65

'��?��$��,��!�� ...................................................................................................... 68

'��@��8�$�� .................................................................................................. 68

'��%�,��!� ��$��$�� B�(/�9D ................................................................................ 69

'��'�/$� $!��,H,9�(��$��@��$�� .......................................................................................... 70

1


+��%�,��,�� (�� ................................................................................89

)��;��!$��!��B;�8D�� .................................................................................. 89

)��/$��!!$� ��/$��!�,�� 9O�� .................................................................................... 91

)��,89/��$��!�� .............................................................................................................................. 92

)�%�L��!��(�� $��L�� @��$�� ................................................................................ 93

)�'�N��/$��O�� ................................................................................................................................ 94

)�)�H��$��!�+��$��O�� ............................................................................................................... 95

)�*�9��-/$��$� ................................................................................................................................... 98

)�I�?��$��,��!�� ...................................................................................................... 102

)�K�;��!�9��9��/$��O�� ................................................................................................. 103

-�� *�� .......................................................................................................109

*��,��!�� $�� ,��/�� B(��$��%'�$��,�9�D ............................... 110

*�� !� ��$��,��!�� ,��9�� $��H$�� ............................................... 111

*��,��!�� P�� ..................................................................................... 112

*�%�8�!��9��$��9+�� /�� ..................................................................................... 122

*�'��!�� :�/!� �Q��P�� B(��$��%2��%��$��,�9�D ........................... 123

*�)�(��$�� $�� .................................................................................................... 124

/�5��6��*�� ...........................................................................................126

2


A AFS AGSA APP AR ARTG B BAS BTO BOC BBBEE BBPCC C CFO CLGF CWP CATA COGTA D DBSA DDG DCOG (TSU) DGDS Dlg&hs DM DMC DoL DORA DPC DPSA DPW DPWRT DrKK DRRSMDM

Acronyms Annual Financial Statements Auditor General of South Africa Annual Performance Plan Annual Report Analytical Reporting Template Basic Accounting System Budget and Treasury Office Budget Oversight Committee Broad Based Black Economic Empowerment Bokone Bophirima Provincial Coordinating Committee Chief Financial Officer Common Wealth Local Government Forum Community Works Programme Culture Arts and Traditional Affairs Corporate Governance and Traditional Affairs Development Bank of Southern Africa Deputy Director General Department of Cooperate Governance (Technical Support Unit) District Growth and Development Strategy Department of Local Government and Human Settlement District Municipality Departmental Management Committee Department of Labour Division of Revenue Act Departmental Procurement Committee Department of Public Service and Administration Department of Public Works. Department of Public Works, Roads and Transport Dr Kenneth Kaunda Dr Ruth Segomotsi Mompati District

O OD OHASA OHS OOP I ICT IDP IGR IMI IMMIS IT IWMP IA K KPA KPI KRA L LED LG LGNET LG SETA LGTAS LM LUMB LUS LGAS LTT S SALGA SCM SDA SDBIP

Organizational Development Occupational Health and Safety Act. Occupational Health and Safety Office of the Premier Information Communication Technology Integrated Development Planning Inter-Governmental Relations Integrated Municipal Infrastructure Integrated Municipal Management Information System. Information Technology Integrated Waste Management plans Internal Audit Key Performance Areas Key Performance Indicator Key Result Area Local Economic Development Local Government Local Government Network Local Government Sectoral Education and Training Authority Local Government Turn –Around Strategy Local Municipality Land Use Management Bill Land Use Scheme Local Government Anti Corruption Strategy Local Government Task Team South African Local Government Association Supply Chain Management Skills Development Act Service Delivery and Budget Implementation Plan.

3


SECTION 1: INTRODUCTION

1.1 Foreword by the MEC

MEC FENNY GAOLAOLWE

The National Development Plan (NDP) envisions that by 2030 South Africa will have a state that is capable of playing a developmental and transformative role. In broad terms such a state intervenes to support and guide development in such a way that benefits accrue across society (especially the poor). Drawing from the NDP chapter on a Capable and Developmental State, by 2030 we will have a developmental local state that is accountable, focused on citizen’s priorities and capable of delivering high-quality services consistently and sustainably through cooperative governance and participatory democracy.

The fifth Administration in the Bokone Bophirima Province adopted the 5 concretes towards the realization of the National Development Plan Vision by 2030. The Province of Bokone Bophirima continue to pride itself with the realization of improvements in our communities through the implementation of Setsokotsanane programme. The Department of Local Government and Human Settlements remains at the centre of Rebranding, Repositioning and Renewing (RRR) the image of our province as pronounced by the fifth administration.

The Department’s priority is to achieve the targets and priorities set out by the Local Government’s Back to Basics Programme and that the Department as well as Municipalities must strive towards obtaining unqualified audit opinions.

For the year under review, the Department has also registered significant progress in terms of implementation of outcome 9 and Back to Basics establishment phase, the highlights are summarized as follows:

4


Back to Basics Pillar 1: Public Participation: Putting People First

The Department believes that the people centered-approach to governance and development is a core part of building developmental state. On average, 68% ward committees in the province are functional . Moretele Local Municipality (LM), Ratlou LM and Kagisano-Molopo LM have high percentage of ward committee’s functionality.

Community Works Programme is implemented in 17 Municipalities and it created 16500 work opportunities for the year under review.

Back to Basics Pillar 2: Creating conditions for decent living

81% of households have access to a basic level of water, 63%of households have access to a basic level of electricity while access to basic level sanitation is at 63%.

Back to Basics Pillar 3: Good Governance

All the Municipalities submitted their Integrated development plan (IDP) during the year under Review. Fourteen (14) Municipalities tabled the Oversight Report on Annual Report for the 2015/16 Financial Year

Back to Basics Pillar 4: Sound Financial Management

4 out of 23 Municipalities received a financially unqualified audit outcomes with matters of emphasis viz Kgetleng Rivier LM, Dr. Ruth Segomotsi Mompati District Municipality (DM), Naledi LM, Kagisano-Molopo LM.

12 Municipalities received financially qualified audit outcomes and 7 Municipalities received disclaimer Audit outcome.

The Department will continuously support and monitor Municipalities with the process of the development and implementation of AG’s action plan, implementation of revenue enhancement strategies, assist struggling Municipalities with development of financial recovery plans and implementation thereof and provide support to Municipalities with regard to MPRA issues.

Back to Basics Pillar 5: Building Capable Institutions and Administrations

Overall vacancy rate within the Municipalities is 28%, Ngaka Modiri Molema DM and City of Matlosana LM are the highest in the Province with high senior management turnover rate. This suggests that there is generally no administrative capacity and capability to assist Councils to deliver on their constitutional obligation of delivering services.

87% of Municipalities are compliant with filling of Municipal Manager and Senior Managerposts with Minimum Competency levels.

5


Although Tswaing Local Municipality tabled and submitted incomplete annual reports I wish to thank all twenty three (23) Municipalities submitted the MFMA section 121 annual reports to the Department. Due to their submission efforts the Department is able to identify the support needed and undertake the necessary remedial action.

6


1.2 Executive summary by the Head Of Department

The report presents an analysis conducted and a comparison of past and current progress on municipal performance. This is followed by a brief assessment summary Analysis of Performance and best-Practices Identified.

PERFORMANCE HIGHLIGHTS

This Annual Performance Report for 2015/16 financial year is in compliance with section 47 of the Local Government Municipal Systems Act. (Act No. 32 of 2000). The report measures the progress made by the Local Government Provincially in meeting its constitutional mandate to, namely:

(a) To provide a democratic and accountable government for local communities; (b) Ensure that services are provided to the community in a sustainable manner; (c) Promote social and economic development; (d) Promote safe and healthy environment; and (e) Encourage the involvement of communities and community organizations in the

matters of Local Government [section 152 (1) RSA Constitution 1996] The approach adopted in reporting the municipal performance for the period under review is based on the Analytical Reporting Template and Guide (“ARTG”) and Support Monitoring and Intervention Plan (“SMIP”). A limited number of key indicators have been selected from the ARTG, which allow for a high level overview of the status of performance and resilience of Municipalities in a Province, and for interprovincial comparison. The majority of these indicators are measured annually. The base-line year is equivalent to year 1 of the reporting cycle. Recording three years of indicators allow for municipal performance trend analysis, Municipal bench- marking and an assessment of whether government-wide support, monitoring and intervention within Municipalities is effective or not. The analysis provided in this guide should draw from key themes and findings as reported in the

7


Analytical Reports compiled per Municipality, and may reflect on the same considerations for analysis as are provided for in corresponding sections of the ARTG.

SERVICE DELIVERY

Municipal Infrastructure Grant (MIG) Expenditure: The total budget for all 23 Municipalities in the province for 2015/16 amounts to R 1, 556, 296, 000.00 and total spending of MIG amounts to R 1, 396, 068, 458.31 (90%) and which increased as compared to 14/15 which was 88%. MIG Expenditure per district ranges from average 70%-99%.

COMMUNITY ENGAGEMENTS

Ward committees’ functionality decreased as compared to the prior years, 68% during the year under review 14/15 at 70%, 13/14 at 74%. 1 ward in Rustenburg LM (ward 38) remains to be not formalised due to the ward been won by an independent individual. Number of CWP work opportunities created in the province by Municipalities are 16500 as compares to financial year 14/15 at 15448.

FINANCIAL MANAGEMENT

Debtors Total outstanding debtors in the Bojanala District amounted to R5 billion, of which R4,2 billion or 83 per cent is owed for more than 90 days. The overall increase indicates that Municipalities in the district are not implementing their credit control and debt collection policies effectively. The most contributing Municipalities to the outstanding debt are Rustenburg LM and Madibeng LM.

Total debtors outstanding in the Ngaka Modiri Molema LM district amounted to R 1,5 billion, of which R1,4 billion or 93 percent is owed for more than 90 days. Mafikeng Municipality amounted to R840 million or 55 percent which is the highest Municipality owed in the District. Total debtors outstanding in the Dr Ruth Segomotsi Mompati District amounted to R 917 million, of which R 838 million or 91 percent is owed for more than 90 days. Lekwa-Teemane LM Municipality remains the most owed Municipality in the district. They currently have outstanding debtors amounting to R407 million or 44percent, The second highest owed Municipality is Naledi with total outstanding amount of R267 million or 29 percent. Outstanding debtors amounted to R2,2 billion for the Dr Kenneth Kaunda District, of which R1,9 billion or 85 percent is owed for more than 90 days. The City of Matlosana is the

8


Municipality with the highest debt outstanding at R1, 4 billion or 64 percent when compared to other Municipalities in the district. Maquassi Hills has recorded the second highest amount of outstanding debtors in the district at R589 million or 26 percent. Audit Outcomes: None of the Municipalities achieved clean audit.

GOVERNANCE

IDP: all Municipalities submitted their Integrated Development plan (IDP)

9


1.3 Legislative Background

Legislation Objective Key provisions relevant to the report

The Constitution of 1996 and its amendment

This Constitution is the supreme law of the Republic; law or conduct inconsistent with it is invalid, and the obligations imposed by it must be fulfilled

Chapter 7, Objects of local government 152. (1) The objects of local

government are— (a) to provide democratic and

accountable government for local communities;

(b) to ensure the provision of services to communities in a sustainable manner;

(c) to promote social and economic development;

(d) to promote a safe and healthy environment; and

(e) to encourage the involvement of communities and community organizations in the matters of local government.

(2) A Municipality must strive, within its financial and administrative capacity, to achieve the objects set out in subsection (1).

White Paper on Local Government of 1998

It flashes out more clearly the developmental role of local government finding sustainable ways to meet community needs (social, economic and material) and improve the quality of their lives.

Characteristics of the developmental local government

� Maximizing social development and economic growth;

� Integrating and coordinating development;

� Democratizing development, empowering and redistribution of resources; and Leading and learning

Municipal structure act of 1998 and its amendment

To provide for the establishment of Municipalities in accordance with the requirements relating to categories and types of Municipality, provide appropriate division of

19 Municipal objectives (1) A municipal council must strive within its capacity to achieve the objectives set out in section 152 of the Constitution. (2) A municipal council must annually review- (a) the needs of the community;

10



functions and powers between categories of Municipality; to regulate the internal systems, structures and office-bearers of Municipalities;

(b) its priorities to meet those needs; (c) its processes for involving the community; (d) its organizational and delivery mechanisms for meeting the needs of the community; and (e) Its overall performance in achieving the objectives referred to in subsection (1)……

Municipal systems act of 2000 and its amendment

To provide for the core principles, mechanisms and processes that are necessary to enable Municipalities to move progressively towards the social and economic upliftment of local communities,; to establish a simple and enabling framework for the core processes of planning, performance management, resource mobilization and organizational change

Chapter 6 Reports by MEC 47. (1) The MEC for local government must annually compile and submit to the provincial legislatures and the Minister a consolidated report on the performance of Municipalities in the province. (2) The report must— (a) identify Municipalities that under-performed during the year; (b) propose remedial action to be taken; and (c) be published in the Provincial Gazette. (3) The MEC for local government must submit a copy of the report to the National Council of Provinces.

Municipal Finance Management Act of 2003

To secure sound and sustainable management of the financial affairs of Municipalities and other institutions in the local sphere of government; to establish treasury norms and standards for the local sphere of government; and to provide for matters connected therewith.

Chapter 12 Preparation and adoption of annual reports 121. (1) Every Municipality and every municipal entity must for each financial year prepare an annual report … (2) The purpose of an annual report is— (a) to provide a record of the activities of the Municipality or municipal entity during the financial year to which the report relates; (b) to provide a report on performance against the budget of the Municipality or

11



municipal entity for that financial year; and (c) to promote accountability to the local community for the decisions made throughout the year by the Municipality or municipal entity.

Disaster management act of 2002 and its amendments

An integrated and co-ordinated disaster management policy that focuses on preventing or reducing the risk of disasters, mitigating the severity of disasters, emergency preparedness, rapid and effective response to disasters and post-disaster recovery; the establishment of national, provincial and municipal disaster management centres; Senior Manager disaster management volunteers; and matters incidental thereto.

Annual Reports (Section 50)

All district disaster management centres have produced annual reports and this forms part of the Municipality’s annual reports. The Provincial Disaster Management Centre supported Municipalities to develop disaster management annual reports as per legislative requirements

Municipal Property Rates Act of 2004

To regulate the power of a Municipality to impose rates on property; reductions and rebates through their rating policies; to make provision for fair and equitable valuation methods of properties; to make provision for an objections and appeals process

Sec 81(1c) A Municipality must submit to the MEC for local government such information, reports, documents, explanations and motivations as may be required by the MEC.

12


1.4 Objective of the report

Section 47 of the Municipal Systems Act, 32 of 2000 says that: (1) The MEC for local government must annually compile and submit to the Provincial

Legislatures and the Minister a consolidated report on the performance of Municipalities in the province.

(2) The report must:

a) identify Municipalities that under-performed during the year;

b) propose remedial action to be taken; and

c) be published in the Provincial Gazette.

(3) The MEC for local government must submit a copy of the report to the National Council of Provinces.

Usage of the report

The main purpose of this report is to account to Provincial legislature, NCOP, Minister of Cooperative Governance and Traditional Affairs and to the citizens of South Africa on progress made by Municipalities towards achieving the overall goal of “a better life for all”. Furthermore, it is a key performance report to the communities and other stakeholders in keeping with the principles of transparency and accountability of government to the citizens.

It subscribes to the South African developmental nature of participatory democracy and cooperative governance and responds to the principles of the Constitution, Batho Pele, and White Paper on Local Government, MSA and the MFMA.

13


1.5 Source of information

Primary sources used: The primary source of data for compilation of this report is information provided in the annual reports of individual Municipalities in terms of MFMA section 121, which includes MSA sec 46 report, AFS, audit reports, etc. Not all the Municipalities have provided sufficient information that could allow the province to assess the performance of each. The following documents were also used by the Department to assess Municipalities.

Secondary sources used: 2015/16 MFMA s71 reports, and Departmental in-year monitoring and support reports, and any additional information requested from Municipalities.

1.6 Limitations in provincial reporting

National Treasury issued MFMA circular 63 (September 2012): Annual Report Guidelines: This circular was aimed to capacitate Municipalities to compile the annual report.

Despite MFMA circular 63 clear guidelines, workshops and continuous support to Municipalities, they still lack the capacity to compile quality reports and account on objects of local government as enjoined by section 152 of the RSA Constitution. Most of reports contained irrelevant information which limits the Department to evaluate the performance of Municipalities on the delivered mandate.

It should clearly be noted that the credibility and accuracy of the information cannot be confirmed and remains the responsibility of the Municipal Councils as the custodians of municipal performance management and the Municipal Manager as the accounting officer and head of municipal administration.

14


MSA

SEC

47

REPO

RT 2

014/

15

CON

SOLI

DAT

ED P

ERFO

RMAN

CE R

EPO

RT O

F M

UN

ICIP

ALIT

IES

1.7

Ove

rvie

w o

f M

un

icip

ali

tie

s i

n p

rovin

ce

- C

en

su

s 2

01

6

15


M

SA S

EC 4

7 RE

PORT

201

4/ 1

5

16


North West Economy

http://nwdc.co.za/wp-content/uploads/2017/10/NWP-Economy-2016-sector-split-vs-SA1.png

17


SECTION 2: MUNICIPAL PERFORMANCE REPORT

2 KPA :Basic Service Delivery and Infrastructure Development

2.1 Service Delivery Access Levels Service Delivery Levels

Municipalities Water Sanitation Electricity Solid

Waste

Average

Ngaka Modiri Molema DM Tswaing LM 78% 43% 39% 45% 51% Ratlou LM 60% 30% 83% 0% 43% Mahikeng LM 77% 51% 74% 24% 57% Ramotshere Moiloa LM 34% 1% 0% 45% 20% Ditsobotla LM 83% 59% 31% 25% 50% Dr Kenneth Kaunda DM Maquassi-Hills LM 80% 62% 92% 43% 69% City of Matlosana LM 99.5% 98.6% 98% 97.8% 98% Ventersdorp LM 95% 67% 7.60% 82% 63% Tlokwe City Council LM 100% 100% 100% 100% 100% Dr Ruth Segomotsi Mompati DM Kagisano Molopo LM 75% 72% 75% 1% 56% Lekwa-Teemane LM 75% 63% 90% 40% 67% Greater Taung LM 46% 64% 46.5% 10.5% 42% Mamusa LM 97% 99.7% 96.1% 90% 96% Naledi LM 85% 69% 87% 73% 79% Bojanala Platinum DM Rustenburng LM 95% 94% 90% 90% 92% Kgetleng Rivier LM 96% 57% 1% 32% 47% Moses Kotane LM 82% 24% 88% 96% 73% Madibeng LM 80% 44% 62% 46% 58% Moretele LM 96% 96% 96% 96% 96% Overall Average 81% 63% 66% 55% 66%

Overall Provincial Performance

Indicators 14/15 15/16

% of households with access to a basic level of water 76% 81% % of households with access to a basic level of sanitation 54% 63% % of households with access to a basic level of electricity 76% 66%

18


Kilometres Stormwater Infrastructure

Municipalities Total

Stormwater

measures

New

stormwater

measures

Stormwater

measures

upgraded

Stormwater

measures

maintained

Ratlou LM 33 4.9 4.9 4.9 Mahikeng LM 166 0 0 17 Ditsobotla LM 165 4 4 10 Maquassi-Hills LM 112 0 0 2 Tlokwe City Council LM 51 0 0 55 City of Matlosana LM No Info No Info 5 0 Lekwa-Teemane LM 37 0 0 0

Absence of other Municipalities indicates that there was no information in their annual reports

Kilometres Tarred Road Infrastructure

Municipalities Total

tarred roads

New tar

roads

Existing tar

roads re-tarred

Existing

tar roads re-sheeted

Tar roads

maintained

Ratlou LM 0 16.2 0 0 0 Mahikeng LM 295 0 2.8 0 25 Ditsobotla LM 55 10 5 4 55 Maquassi-Hills LM 114 0 0 0 2 City of Matlosana LM 809 0 3 0 134 Dr Ruth Segomotsi Mompati DM 322 N/A 1 N/A N/A Lekwa-Teemane LM 51.9 0 0 0 0 Moses Kotane LM 100 18.9 0 3 No Info


In the year 2015/16, along the R510, the Rustenburg LM completed 5 kilometres of dedicated bus ways, together with 3 bridges, one of which crosses over the railway line which has for many years been a growing concern for Rustenburg motorists. A total of R97 million was spent on key capital road projects within the Rustenburg LM. A total of 527km of the Kgetleng Rivier LM road network consists of gravel roads and a 328km of paved roads and a total of 14km of the total network is classified as poor or very poor.

Kilometres Gravel Road Infrastructure

Total gravel

roads

New gravel

roads constructed

Gravel roads

upgraded to tar

Gravel roads

graded/maintained

Ratlou LM 601.5 0 16.2 4.9 Mahikeng LM 553 0 0 0 Ramotshere Moiloa LM No Info 99.5 No Info No Info Ditsobotla LM 135 10 10 35 Maquassi-Hills LM 114 0 3.2 2 City of Matlosana LM 411 0 0 311 Lekwa-Teemane LM 75.8 0 8.9 (Upgraded to

paving) 75.8

Mamusa LM 166 25 14 140 Absence of other Municipalities indicates that there was no information in their annual reports

19


2.2 MIG Expenditure BOJANALA DM

NGAKA MODIRI MOLEMA DM

Moretele LM R102,404,000.00 R102,404,000.00 R102,404,000.00 100% R0.00Madibeng LM R254,461,000.00 R -20,000,000.00 R234,461,000.00 R234,461,000.00 100% R0.00Rustenburg LM R202,743,000.00 R202,743,000.00 R202,743,000.00 100% R0.00Kgetleng River LM R23,318,000.00 R -3,000,000.00 R20,318,000.00 R20,318,000.00 100% R0.00Moses Kotane LM R135,375,000.00 R135,375,000.00 R126,098,127.32 93% R9,276,872.68TOTAL BOJANALA R718,301,000.00 -R23,000,000.00 R695,301,000.00 R686,024,127.32 99% R9,276,872.68

15/16 BALANCE

MIG expenditure until the end of June 2016

MUNICIPALITYMAIN

ALLOCATION 2015/16

2015/2016 EXPENDITURE

2015/16 ADJUSTED

ALLOCATION

2015/16 ADJUSTMENTS

% OF 15/16 (AFTER ADJUSTMENTS)

Ratlou LM R28,511,000.00 R28,511,000.00 R28,511,000.00 100% R0.00Tswaing LM R28,390,000.00 -R5,000,000.00 R23,390,000.00 R16,938,230.11 72% R6,451,769.89Mahikeng LM R59,184,000.00 R59,184,000.00 R59,184,000.00 100% R0.00Ditsobotla LM R35,392,000.00 R35,392,000.00 R23,199,325.03 66% R12,192,674.97Ramotshere Moiloa LM R35,982,000.00 -R7,800,000.00 R28,182,000.00 R28,182,000.00 100% R0.00Ngaka Modiri Molema D R294,295,000.00 -R113,135,000.00 R181,160,000.00 R91,722,218.51 51% R89,437,781.49TOTAL NMMDM R481,754,000.00 -R125,935,000.00 R355,819,000.00 R247,736,773.65 70% R108,082,226.35

15/16 BALANCE


MUNICIPALITYMAIN

ALLOCATION 2015/16


2015/16 ADJUSTED

ALLOCATION

2015/16 ADJUSTMENTS


20


DR RUTH SEGOMOTSI MOMPATI DM

DR KENNETH KAUNDA DM

Municipalities whose MIG transfers were withheld and reinstated and reasons thereof

Specifically with regard to expenditure, section 18 stipulates that: “a transferring national officer may withhold the transfer of schedule 4,5 or 6 allocation or any portion of such allocation for a period not exceeding 30 days, if roll-over of conditional allocation approved by National Treasury in accordance with section 21 have not been spent; or if expenditure on previous transfers during the financial year reflects significant under-spending, for which no satisfactory explanation is given, The following 13 Municipalities were affected by

DR RUTH SEGOMOTSI MOMPATI DM

Naledi LM R16,544,000.00 R29,300,000.00 R45,844,000.00 R36,970,800.53 81% R8,873,199.47Mamusa LM R15,306,000.00 R15,306,000.00 R15,306,000.00 100% R0.00Greater Taung LM R46,052,000.00 -R15,000,000.00 R31,052,000.00 R31,052,000.00 100% R0.00Lekwa Teemane LM R14,437,000.00 R14,437,000.00 R14,437,000.00 100% R0.00Kagisano/Molopo LM R29,154,000.00 R29,154,000.00 R29,154,000.00 100% R0.00Dr Segomotsi Ruth Mom R136,575,000.00 R136,575,000.00 R136,575,000.00 100% R0.00I RUTH MOMPATI DM R258,068,000.00 R14,300,000.00 R272,368,000.00 R263,494,800.53 97% R8,873,199.47

15/16 BALANCE


MUNICIPALITYMAIN

ALLOCATION 2015/16


2015/16 ADJUSTED

ALLOCATION

2015/16 ADJUSTMENTS


Ventersdorp LM R22,420,000.00 -R8,500,000.00 R13,920,000.00 R13,920,000.00 100% R0.00Tlokwe LM R47,028,000.00 R30,000,000.00 R77,028,000.00 R66,754,941.20 87% R10,273,058.80City of Matlosana LM R84,493,000.00 R84,493,000.00 R78,351,695.67 93% R6,141,304.33Maquassi Hills LM R27,367,000.00 R30,000,000.00 R57,367,000.00 R39,786,119.94 69% R17,580,880.06TOTAL DR KAUNDA D R181,308,000.00 R51,500,000.00 R232,808,000.00 R198,812,756.81 85% R33,995,243.19TOTAL NW PROVINCE R1,639,431,000.00 -R83,135,000.00 R1,556,296,000.00 R1,396,068,458.31 90% R160,227,541.69

15/16 BALANCE


MUNICIPALITYMAIN

ALLOCATION 2015/16


2015/16 ADJUSTED

ALLOCATION

2015/16 ADJUSTMENTS


21


withholding which started in October due to under-expenditure, the below listed Municipalities spent less that 60% of their first transfer (in-July) which resulted to withholding processes

1. Moretele LM 2. Madibeng LM 3. Moses Kotane LM 4. Kgetleng Revier LM 5. Ramotshere Moiloa LM

6. Tswaing LM 7. Ngaka Modiri Molema DM 8. Dr Ruth Segomotsi Mompati DM 9. Lekwa Teemane LM 10.Matlosana LM

11.Ventersdorp LM 12.Greater Taung LM 13.Mamusa LM

Municipalities whose MIG allocation were reduced/stopped

“Despite section 18, the National Treasury may in its discretion or at the request of transferring national officer stop the transfer of a schedule 5 allocation if the National Treasury anticipates that a province or Municipality will substantially under spend on the programme or allocation in the financial year. Based on the expenditure pattern indicated by below mentioned Municipalities, the DCoG and DLGHS recommended to National Treasury that a portion of those Municipalities' MIG allocation, yet to be transferred, be stopped.

� Madibeng LM (-R20 000 000) � Kgetleng Revier (-R3 000 000) � Tswaing LM (-R5 000 000) � Ramotshere Moiloa LM (-R7 800 000) � Ngaka Modiri Molema DM (-R 113 135 000) � Greater Taung LM (-R15 000 000) � Ventersdorp LM (-R8 500 000)

Department appreciate lessons learnt from interactions with Municipal Infrastructure Grant (MIG) under spending municipalities .To date, the Department has taken a hands on approach on planning jointly with municipalities in respect of MIG. This has assisted municipalities in adopting a needs based approach in their planning process and ensured that municipalities procure within a given period to meet their implementation targets; thereby spending the budget as required.

Municipalities who received an additional allocation

In terms of section 20 (1) of Division of Revenue Act (DoRA), Act no 1 of 2015 of the adjustment of the Municipal Infrastructure Grant (MIG) allocation. This section allows for the re-allocation of schedule 4 or 5 allocation, or a portion thereof, to be re-allocated as the same type of allocation allocated originally, to the relevant Municipalities on that the allocation be spent by the latest at the end of the 2015/16 financial year The following Municipalities benefitted:

� Naledi LM (+R29 000 000) � Maquassi Hills LM (+R30 000 000) � Tlokwe LM (+R30 000 000)

22


Status of Infrastructure and Project Management unit per Municipality

Municipalities PMU Manager

Technicians Reports Site visits Quality of Projects

Moretele LM Filled 5 On time Regular Very Good Madibeng LM Filled 5 On time Regular Very Good Rustenburg LM Filled 4 On time Regular Very Good Moses Kotane LM Filled 3 On time Regular Very Good Kgetleng-revier LM Filled 2 On time Not regular Very Good Mafikeng LM Filled 1 On time Not regular Not Good Ditsobotla LM Filled 2 On time Regular Very Good Ratlou LM Filled 1 On time Regular Very Good Tswaing LM Filled 1 On time Regular Very Good Ramotshere Moiloa LM Filled 1 On time Regular Very Good Ngaka Modiri Molema DM Filled 4 On time Regular Not Good Naledi LM Filled 2 On time Regular Very Good Greater Taung LM Filled 2 On time Not regular Very Good Lekwa Teemane LM Filled 0 On time Not regular Not Good Kagisano Molopo LM Not Filled 0 Late Not regular Fair Dr R.S Mompati DM Filled 0 On time Regular Fair City of Matlosana LM Not Filled -

Acting Manager

1 On time Regular Very Good

Tlokwe City Council LM Not Filled - external consultants

1 Late Regular Very Good

Maquassi Hills LM Filled 2 On time Regular Very Good Ventersdorp LM Not Filled 0 On time Regular Very Good Only two Municipalities are without PMU Manager and Technician being Kagisano Molopo and Ventersdorp LM. Consulting company is currently providing Project Management Unit (PMU) services Tlokwe City Council Local Municipality. An exit strategy will be done to assist the Municipality to become self-sustaining and independent beyond intervention. The unit falls under the technical Department as required by the MIG policy Framework MISA deployed personnel to Moretele LM, Madibeng LM, Moses Kotane LM, giving support in planning and monitoring. Kgetleng-revier LM, Mafikeng LM and Lekwa Teemane LM do not conduct regular sites visits and the quality of their projects are very poor. Kagisano Molopo LM does not conduct regular site visits, scoring relatively fair on quality of projects presented. The irregular site visit could continue to compromise the quality of its projects by downgrading further.

23


Impact of water services authorities and other service authorities (Eskom, Botshelo, etc)

• Some of the challenges is that Municipalities tend to prioritize other projects to spend the MIG fund rather than focusing on the national targets which is water and Sanitation. In some instances due to limited allocation, Municipalities try to balance categories based on other needs of the communities of which at the end it compromises on the critical or urgent needs.

• Delay in WSA Municipalities in submitting technical report on time to DWS delays the implementation of water and sanitation projects earmarked for that particular financial year because water and sanitation projects have to go through the relevant Department for site evaluation and recommendation.

• Ngaka Modiri Molema DM is the most critical whereby most local Municipalities are very rural and they depend entirely on the district as is their function. The allocation for this district is not enough to address all water challenges,

• Dr Ruth Segomotsi Mompati DM the situation is similar to Ngaka Modiri DM as the water and sanitation in these District Municipalities is a challenge.

• Other sectors especially DWS is playing a major role in terms of giving attention and support in Municipalities with their limited capacity and resources and also working closely with the MIG unit as the champions in terms of water and Sanitation.

• Eskom on the other hand is a pain in most Municipalities as most of the connections in terms of power supply in water and other projects must be connected by Eskom. Whereby projects e.g. community halls, High mast lights, boreholes completed long time ago and get damaged or vandalized in the process before Eskom can come and connect. In every engagement with Municipalities Eskom is invited but never come to listen to the issues of Municipalities and this lead to communities vandalizing infrastructure that is not functional or do not serve its purpose.

2.3 Provincial Infrastructure Grant (PIG)

Infrastructure remains a serious challenge in Bokone Bophirima Province to accelerate integrated infrastructure development, to this end, the Department has supported 8 municipalities with PIG funding for 2015/16 with Sixty Five Million Rand (R65m) and all of it has been spent. The Municipalities are as follows Ventersdorp LM, Madibeng LM, Greater Taung LM, Moretele LM, Mahikeng LM, Ramotshere Moiloa LM, Ventersdorp LM and Moretele LM.

24


2.4 Human settlement

Municipality No of

Sites Cost

R'000 No of Houses

No. Job Created

NW371 Moretele - 46,526 - 312 NW372 Madibeng - 229,952 473 ,541 NW373 Rustenburg 1,435 329,623 ,041 2,208 NW374 Kgetlengrivier - 118,642 477 795 NW375 Moses Kotane - 130,634 1,070 875 DC37 Bojanala 1,435 855,377 3,061 5,731 NW381 Ratlou 10 62,534 417 419 NW382 Tswaing 1,394 262,560 431 1,759 NW383 Mafikeng 125 81,093 738 543 NW384 Ditsobotla 250 62,025 167 416 NW385 Ramotshere Moiloa - 67,190 375 450 Planning Intervention ( Geotech, township establishment , EIA, etc)

- 11,162 - 75

DC38 Ngaka Modiri Molema 1,779 546,564 2,128 3,662 NW391 Kagisano - NW392 Naledi 1,395 151,277 1,315 1,014 NW393 Mamusa 556 161,073 734 1,079 NW394 Greater Taung - 44,334 208 297 NW397 Kagisano/Molopo - 29,976 373 201 NW396 Lekwa-Teemane 1,257 121,103 35 811 Planning Intervention ( Geotech, township establishment , EIA, etc)

132 19,087 - 128

DC39 Dr Ruth Segomotsi Mompati 3,340 526,850 2,665 3,530 NW401 Ventersdorp - 25,779 189 173 NW402 Tlokwe City Council - 62,224 422 417 NW403 City Of Matlosana - 257,416 1,815 1,725 NW404 Maquassi Hills - 77,269 591 518 Planning Intervention ( Geotech, township establishment , EIA, etc)

- - 126 -

DC40 Dr Kenneth Kaunda - 422,688 3,143 2,832 Total 6,554 2,351,479 10,997 15,755

Human settlement opportunities is 4,876, out of a target of 4,188 units

2.5 Overall Challenges encountered

1. High volume of electricity and water losses.

25


2. Old water, electricity, sewage and road networks infrastructure. 3. Insufficient money and personnel in infrastructure and technical Department. 4. Municipalities fail to prioritize projects and get necessary documents to initiate

projects on time e.g. technical reports not submitted or inputs by sector Departments not considered timeously.

5. Often the lack of understanding of Supply Chain Management procedures and lack of commitment to processes and timelines result in further delays e.g. Bid evaluation committees and bid adjudication committees are not sitting regularly thereby negatively impacting on decision making processes and delaying project initiation and implementation.

2015/16 Completed Infrastructure Projects

DWS administered Grants

� RBIG-Regional Bulk Infrastructure Grant � WSIG-Water Services Infrastructure Grant � MWIG-Municipal Water Infrastructure Grant � ACIP-Accelerated Community Infrastructure Programme

Municipality Project Description Villages Expended

Moretele Local Municipality

Water Augmentation ,drilling of additional boreholes and extend the communal taps

Potoane Prieska Thulwe Opperman

R9,5 million

Moses Kotane Local

Municipality

New elevated tank, additional boreholes, and additional communal standpipes.

Moubane Dinokaneng

R11 million

Ngaka Modiri Molema DM

Lichtenburg-Refurbishment of Waste Water Treatment Works

Lichtenburg R15 million

Rural Water Supply, drilling of boreholes, elevated steel tank additional standpipes, and new pump station.

Ga Maloka R7 million


Borakalalo, Rietpan, Dinokana

R11 million


Makhubung Dithakong tsa Sehuba Dihatshwane

R9 million

26


Municipality Project Description Villages Expended


Geysdorp, Manamolela Majaneng

R14 million

Refurbishment of Groot Marico Water Treatment works

Groot Marico R10 million

Matlosana Local Municipality

Refurbishment of Waste Water Treatment Works in Orkney

Orkney R10 million

Dr Ruth Mompati Dm

Refurbishment of Bloemhof Waste water Works

Bloemhof R8 million

Drilling of boreholes to augment surface water supply

Schweizer Reneke R11 million

Rehabilitation of boreholes and connection to energize new boreholes

Pomfret R8 million

Kgetlengrivier LM

Drilling of boreholes, to augment the surface water in Rosmincol farm. Replacement of the steel elevated tank. Upgrade of Koster raw water pumps

Swarttregens Koster

R7.5 million

Moses Kotane LM Pilanesburg Bulk Water Supply Scheme &Mafenya Reservoir

Ledig R55 million

Total R186 million

2.6 Under performing Municipalities

Not doing well Potential to do well 1. Ratlou LM 2. Ramotshere Moiloa LM 3. Ditsobotla LM 4. Greater Taung LM 5. Kgetleng Rivier LM 6. Ngaka Modiri Molema

1. Tswaing LM 2. Mahikeng LM 3. Maquassi-Hills LM 4. Ventersdorp LM 5. Kagisano Molopo LM 6. Lekwa-Teemane LM 7. Madibeng LM

27


2.6 Intervention

Support provided

� District Wide planning sessions conducted during October 2015, in planning for MTEF period to align national, provincial and municipal priorities, Knowledge/information sharing process, report to principals on how MIG is prioritised in the next three years. Also to Assist in enhancing the developmental capacity of Municipalities, through supporting multi-year planning and budgeting systems; and Provide a mechanism for the coordinated pursuit of national policy priorities with regard to basic municipal infrastructure programmes.

� MIG Provincial workshop held, with Sector Departments, National CoGTA invited to workshop Municipalities on Policy issues, conditions, frameworks, Sector Departments Norms and Standards, best practices, expectations and targets for the next financial year, Municipalities were given platform to show and prove the readiness, then a monitoring tool was developed based on the outcome of the workshop. (Monitoring tool – Template used on Monthly basis for monitoring).

� Appraisal sessions were held on quarterly basis for registration of projects. � In terms of monitoring of projects, a schedule of site visit was prepared and followed

on monthly basis. Projects were selected randomly by the MIG unit for inspection with National and Sector Departments invited.

� PMU Business plans Appraisal session was held during May before the beginning of the municipal financial year to evaluate the previous plans, make recommendations and approve the current plans, with CoGTA, Sectors invited. 20 PMUs business plans were approved for 2015-16 FY.

� Trainings were conducted on MIG MIS (Management Information System) during July and August 2015 to all the Municipalities.

� Trainings on DoRA, Monthly and Quarterly reporting conducted during September 2015 for all the Districts

� Monthly District engagements with Municipalities held on regular basis with invited National CoGTA and relevant Sector Departments regarding challenges experienced, where relevant officials in the Municipality MM’s, CFO’s, Technical units and PMU’s are engaged on issues relating to their roles/functions and unblocking bottlenecks that delays the processes on the implementation of projects

� Regular engagement on one on one with slow spending Municipalities. These Municipalities are given attention based on expenditure reports that are not satisfactory and also engage on issues of PMU conditions and utilization of 5% top slice.

� Interventions with accounting officers on under expenditure to prevent withholding of their MIG funds and possibility of stopping and re-allocating sum of the allocations to other Municipalities.

28


2.8 Intended support to remedy the challenges

� Conduct a study of municipal old infrastructure, water and electricity losses ;and determine ways and cost needed to address the challenge

� Ensure proper co-ordination between all municipal infrastructure programmes and sector Departments at the provincial level.

� Monitor the performance of Municipalities with regard to infrastructure delivery � Ensure that planning for regional scale infrastructure is guided by provincial

government working collaboratively with Municipalities and the relevant sector Departments

� Ensure that IDPs properly address municipal infrastructure requirements. � Support Municipalities to develop their capacity to effectively manage the delivery of

infrastructure. � Assist Municipalities to establish and maintain programme management systems. � Verify the accuracy of project registration forms, monthly reports as well as quarterly

reports. � Provide assistance to Municipalities in managing municipal infrastructure projects; � Co-operate with all sector Departments in monitoring the implementation of

projects; � Monitor the performance of project management within Municipalities. � Develop the capacity of Municipalities to effectively manage the infrastructure

provided using MIG. � Monitor the financial performance of Municipalities. � Provide technical advice on the MIG programme related to infrastructure for which

provinces have responsibility (for example, roads).

29


3 K

PA

2:M

un

icip

al

Insti

tuti

on

al

De

ve

lop

me

nt

an

d T

ran

sfo

rma

tio

n

3.1

Hu

ma

n R

eso

urc

e M

an

ag

em

en

t

Mun

icipa

lity

Cate

gory

Va

canc

y ra

te

Man

agem

ent

turn

over

rate

Le

ngth

of t

ime

(mon

ths)

Mun

icipa

l M

anag

er is

in

curre

nt p

ositi

on

Leng

th o

f tim

e(m

onth

s)

actin

g M

unici

pal

Man

ager

in

curre

nt p

ositi

on

CFO

Corp

orat

e In

frast

ruct

ure

%

com

plia

nce

with

fillin

g of

M

unici

pal

Man

ager

and

Se

nior

M

anag

er

post

s w

ith

Min

imum

Co

mpe

tenc

y le

vels

City

of M

atlo

sana

B1

16

%

75%

Va

cant

6

0 0

0 10

0%

Mad

iben

g LM

B1

38

%

15%

11

N/

A 0

0 1

45%

Ru

sten

burg

LM

B1

54

%

18%

va

cant

3

0 0

0 80

%

Tlok

we

LM

B1

17%

22

%

25

N/A

0 0

1 20

%

Mah

ikeng

LM

B2

26

%

83%

Va

cant

11

0

0 1

100%

Di

tsob

otla

LM

B3

12

%

50%

va

cant

20

1

1 1

No in

fo

Tsw

aing

LM

B3

80

%

80%

Va

cant

10

0

0 1

100%

Ra

mot

sher

e M

oilo

a LM

B3

43

%

29%

Va

cant

3

1 0

1 80

%

Nale

di L

M

B3

No in

fo

0%

57

N/A

1 1

1 10

0%

Mam

usa

LM

B3

44%

20

%

50

N/A

1 1

1 66

%

Lekw

a-Te

eman

e LM

B3

51

%

20%

18

N/

A 0

1 1

67%

M

aqua

ssi H

ills L

M

B3

1%

60%

48

N/

A 0

1 0

90%

Ve

nter

sdor

p LM

B3

32

%

50%

va

cant

8

1 0

1 10

0%

Kget

leng

rivie

r LM

B3

41

%

50%

8

26

1 1

0 10

0%

Ratlo

u LM

B4

2%

20

%

50

N/A

1 0

1 10

0%

Grea

ter T

aung

LM

B4

6%

50

%

28

N/A

1 0

1 10

0%

Kagi

sano

-Mol

opo

LM

B4

3%

50%

47

N/

A 0

1 1

100%

M

oret

ele

LM

B4

17%

0%

32

N/

A 1

1 1

67%

30


Mun

icipa

lity

Cate

gory

Va

canc

y ra

te

Man

agem

ent

turn

over

rate

Le

ngth

of t

ime

(mon

ths)

Mun

icipa

l M

anag

er is

in

curr

ent p

ositi

on

Leng

th o

f tim

e(m

onth

s)

actin

g M

unici

pal

Man

ager

in

curr

ent p

ositi

on

CFO

Corp

orat

e In

frast

ruct

ure

%

com

plia

nce

with

fillin

g of

M

unici

pal

Man

ager

and

Se

nior

M

anag

er

post

s w

ith

Min

imum

Co

mpe

tenc

y le

vels

Mos

es K

otan

e LM

B4

45

%

20%

Va

cant

4

1 0

1 10

0%

Boja

nala

Pla

tinum

DM

C1

14

%

0%

59

N/A

1 1

1 10

0%

Dr K

enne

th K

aund

a DM

C1

31

%

0%

39

N/A

1 1

1 10

0%

Dr R

uth

Sego

mot

si M

ompa

ti DM

C2

14

%

20%

50

N/

A 1

1 1

100%

Ngak

a M

odiri

Mol

ema

DM

C2

34%

82

%

Vaca

nt

15

0 0

0 10

0%

Ave

rag

e

2

8%

3

5%

3

7

11

1

3

11

1

8

87

%

The

reas

on f

or v

acan

cies

and

turn

over

rat

e is

due

to r

etire

men

ts, d

eath

s, r

esig

natio

n an

d di

smiss

als.

Also

not

e th

at t

here

ter

min

atio

ns

exce

eded

the

app

oint

men

ts d

ue t

o th

e m

orat

oriu

m i

n th

e se

cond

hal

f of

the

fin

ancia

l ye

ar d

ue t

o ap

proa

chin

g Lo

cal

Gove

rnm

ent

elec

tions

. Mos

t sen

ior m

anag

ers

are

still

unde

rgoi

ng tr

aini

ng to

add

ress

gap

s as

requ

ired

by re

gula

tion

Mun

icipa

l Reg

ulat

ions

on

Min

imum

Co

mpe

tenc

y Le

vels.

Ov

eral

l Pro

vinc

ial P

erfo

rman

ce

In

dic

ato

rs O

vera

ll Pr

ovin

cial P

erfo

rman

ce

14/1

5 15

/16

Over

all v

acan

cy ra

te w

ithin

the

Mun

icipa

litie

s

34%

28

%

Over

all m

anag

emen

t tur

nove

r rat

e

30%

35

%

Num

ber o

f Mun

icipa

litie

s co

mpl

iant

with

fillin

g of

Mun

icipa

l Man

ager

and

Sen

ior M

anag

er p

osts

with

Min

imum

Com

pete

ncy

leve

ls

57%

87

%

31


3

.2 S

tate

of

Dis

cip

lin

ary

Acti

on

Mu

nic

ipa

liti

es

Na

ture

Of

All

eg

ed

Mis

co

nd

uct

Da

te O

f S

usp

en

sio

n

De

tail

s O

f D

iscip

lin

ary

Acti

on

Ta

ke

n O

r S

tatu

s

Of

Ca

se

An

d R

ea

so

ns W

hy N

ot

Fin

ali

ze

d

Tsw

aing

LM

Mal

adm

inist

ratio

n 18

/06/

2015

Pe

ndin

g M

alad

min

istra

tion

18/0

6/20

16

Dism

issed

M

alad

min

istra

tion

16/1

1/20

15

Pend

ing

Mah

iken

g LM

Gr

oss

Misc

ondu

ct

25/1

1201

5 M

atte

r On

Goin

g Di

tsob

otla

LM

Misc

ondu

ct

23/1

0/20

13

Rein

stat

emen

t M

iscon

duct

13

/11/

2013

Su

spen

sion

Uplif

ted

Misc

ondu

ct

3/01

/201

4 Di

smiss

ed

City

Of M

atlo

sana

LM

Failu

re T

o Co

mpl

y La

wfu

l Ins

truct

ion

17/0

4/20

15

Case

Pos

tpon

ed

Mal

iciou

sly R

evel

ing

Priv

ilege

d An

d Co

nfid

entia

l Inf

orm

atio

n To

The

Pub

lic

28/0

8/20

15

Mat

ter P

ostp

oned

: Sin

e Di

e

Fina

ncia

l Misc

ondu

ct

23/0

7/20

15

Mat

ter P

ostp

oned

: Sin

e Di

e Br

iber

y 01

/04/

2016

M

atte

r Pos

tpon

ed

Vent

ersd

orp

LM

Thef

t/Fr

aud

03/0

2/20

14

Fina

lized

Cr

imin

al O

ffenc

e N/

A Ca

se S

till P

endi

ng

Auth

oriza

tion

For S

ervi

ce T

hat W

as N

ot

Rend

ered

03

/10/

2014

Ca

se S

till P

endi

ng

Grea

ter T

aung

LM

Gro

ss D

ishon

esty

15

/06/

2015

Di

smiss

ed

Gros

s Di

shon

esty

15

-/06

/201

5 He

arin

g O

n Go

ing

Gros

s Di

shon

esty

01

/02/

2016

De

mot

ed

Gros

s Di

shon

esty

13

/02/

2016

De

mot

ed

Negl

igen

ce

01/1

1/20

15

Foun

d Gu

ilty

Awai

ting

Sanc

tion

32


Mu

nic

ipa

liti

es

Na

ture

Of

All

eg

ed

Mis

co

nd

uct

Da

te O

f S

usp

en

sio

n

De

tail

s O

f D

iscip

lin

ary

Acti

on

Ta

ke

n O

r S

tatu

s

Of

Ca

se

An

d R

ea

so

ns W

hy N

ot

Fin

ali

ze

d

Intim

idat

ion

06/0

2/20

16

Dism

issed

In

citem

ent O

f Vio

lenc

e 01

/11/

2015

Di

smiss

ed

Gros

s In

subo

rdin

atio

n 06

/02/

2015

De

mot

ed

Gros

s In

subo

rdin

atio

n 01

/08/

2015

Re

signe

d Gr

oss

Negl

igen

ce

15/1

2/20

15

Resig

ned

Rust

enbu

rng

LM

Gros

s In

subo

rdin

atio

n, R

efus

al O

f In

stru

ctio

n 03

/03/

2015

Di

smiss

ed

3.3

Un

de

r p

erf

orm

ing

Mu

nic

ipa

liti

es

Not d

oing

wel

l Po

tent

ial t

o do

wel

l Ci

ty o

f Mat

losa

na

Rust

enbu

rg L

M

Tsw

aing

LM

Ra

mot

sher

e M

oilo

a LM

Ng

aka

Mod

iri M

olem

a DM

Mad

iben

g LM

M

oses

Kot

ane

LM

Vent

ersd

orp

Mah

iken

g LM

3.4

In

terv

en

tio

n

1.Tr

ain

Mun

icipa

litie

s on

hum

an re

sour

ce m

anag

emen

t and

dev

elop

men

t 2.

Mon

itor a

nd a

sses

s ap

poin

tmen

t of s

enio

r man

ager

s

33


4. KPA 3:Local Economic Development (LED)

4.1 Status of LED Strategies and structures

Municipality LED Strategy LED Plan

LED Forum/ Structures

LED Portfolio Committee

LED Unit Status Challenges Comments

Yes/ No

Adoption date

Yes/No Yes/No

Bojanala DM Yes 2011

No. (Only sector forums)

Yes – but LED report to two portfolio committees

Director, Mangers for Tourism, Agriculture and officer

� The District Municipality is busy with Terms of Reference for District LED forum.

� The district Municipality needs to review the LED Strategy to respond to the National Development Plan and the National LED Framework

Moses Kotane LM Yes

2011

Yes

Yes

Director Planning & Development (heading 4 units – LED, Housing, IDP & Town planning) -Manager LED, -Coordinator agriculture 3x Admin clerks

� Challenges of budget constraints.

� Lack of uniform organogram for Municipal LED Units, each Municipality designs own structure suitable to their needs

� LED being confused with community services which has to deal with poverty alleviation initiatives that do not have impact on the local economy.

� dlg&hs support to LED unit

Kgetleng Rivier LM Yes 2011

No

Yes – but lack of support from LED unit

Director LED LED officer

� LED strategy developed and adopted in 2011 with assistance for the District Municipality

� No structured engagements with local stakeholder

� The slate mining not benefiting the Municipality as there are more illegal miners

� Facilitate District and dlg&hs support to LED unit

Moretele LM Yes 2010 Under review.

Yes

Yes- need to structure dates to support discussions in council

LED Director, LED Manager Agriculture officer SMME officer

� No budget to implement the plans.

� There is no support to implement LED strategy.

� Process of reviewing the strategy is under to align to NDP.PDP ,National LED Framework and Provincial SPLUMA

Madibeng LM Yes 2012

Yes

Yes

Director LED, LED Manager SMME officer, Tourism and agricultural officer

� Limited budget to implement plans.

� Need to strengthen partnership with mining companies in terms of implementation

34






Yes/ No

Adoption date

Yes/No Yes/No

Rustenburg LM Yes 2011

No

Yes

Director; LED Manager; Manager: Research & Policy Development; Coordinators for Agricultural Development; Enterprise Development; Tourism Development; Industrial Development; Mining & Manufacturing; LED Projects (inclusive of Arts; Culture & Heritage) Skills & Research, Coordinator: Policy Development (vacant)Recruitment & Database Officers x2.

� Unavailability of land for LED projects.

� Lack of funding for LED projects.

� Lack of capacity with some of the LED officials

Limited capacity (human resource) as compared to the LED work at hand

� Need to strengthen partnership with mining companies to ensure implementation of SLPs.

Ngaka Modiri Molema LM

Yes 2012

Yes

Yes

Three(3) officials (manager, officer, tourism & marketing coordinator)

� Lack of cooperation from local Municipalities.

Mafikeng LM Yes 2012

No

Yes

Eight (8) Personnel

� Poor infrastructure which affects Investment attraction.

� No cooperation from municipal officials.

� There is a need for the Municipality to review LED strategy

� There is a need to develop an industrialisation strategy.

Ditsobotla LM Yes 2013 No Functional – but no support from officials on strategic agenda issues.

LED Manager, One Official

� No cooperation from municipal officials.

� Facilitate District and support dlg&hs to LED unit

Ramotshere Moiloa LM

Yes 2013

Yes

Yes

LED Director Manager LED Officer

� There is a need to have Tourism, Agriculture and Rural development officials.

� Lack of resources (working tools).

� Facilitate District and support dlg&hs to LED unit.

Tswaing LM Yes 2008

No

Functional but need support and LED official representation.

One LED official

� Lack of human capacity to implement LED.

� There is a need to facilitate establishment of LED unit

Ratlou LM Yes 2012

Yes

Yes

Three (3) Personnel: Director LED, Assistant Director, LED Officer.

� Water shortages which affects agricultural production in the area.

� Funding to conduct feasibility studies on identified projects.

� Facilitate implementation of LED strategy

35






Yes/ No

Adoption date

Yes/No Yes/No

Dr. Kenneth Kaunda. LM

Yes. 2009

Yes.

Yes

Director, LED Manager, Tourism Coordinator, Tourism Officer, Mining & Agriculture Coordinator, Agriculture Officer (vacant), Administrative Officer

� LED Strategy adopted in 2009 was never implemented. District will have a Strategic Workshop to discuss the Strategy and come up with a way forward.

� An LED assessment report of local Municipalities should be made available to the District to know exactly what kind of support could be given to these Municipalities.

Maquassi- Hills LM

Yes 2013

Yes

Yes - Need to be revived after intervention

LED Manager, LED Officer.

� Strategy that was drafted since June 2012 still not adopted by council due to municipal administrative instability.

� Lack of funding to implement identified projects.

� The lifting of Section 139 on the Municipality could assist in ensuring that the Municipality takes responsibility of its development.

City of Matlosana LM

Yes 2014

Yes

Yes

LED HOD 4X Project Coordinators 3x Tourism Information Officers

� The major challenge that the Municipality faces is conducting feasibility studies for identified projects.

� Facilitate funding to conduct feasibility studies for identified projects.

Tlokwe city council LM

Yes

2016

No

Yes

LED Manager, Enterprise Development Manager, Social Economic Development Manager, Tourism Development Manager, Administrative Officer, Administrative Assistant Typist and Messenger/ Cleaner

� There is a need to establish LED Forum.

� LED strategy adopted by council.

Ventersdorp LM

Yes

2015

No

Yes

LED Director, LED Officer (recently vacated)

� Lack of funding to implement.

� There is a need to develop a strategy in line with the NDP.

� Facilitate District support on implementation.

� Facilitate District and support dlg&hs to LED unit.

Dr.Ruth Segomotsi Mompati DM

Yes 2014

Yes

Yes

Director: EDTA ( LED) LED Manager Tourism Manager Agriculture Manager LED officer 3xLED Coordinators 2xTourism officer 3xTourism coordinators Admin Clerk

� The district LED

forum is currently being resuscitated

� In-ability to attract investment because of Poor or ageing infrastructure such as roads, sewer & water networks.

� Local LED fora Established in all Local Municipalities to form part of District Forum.

36






Yes/ No

Adoption date

Yes/No Yes/No

Lekwa Teemane LM

Yes 2014

Yes

Yes

LED Manager

� There is a need to engage the District, Parks and Tourism in terms of development s around Bloemhof dam.

� LED forum not functional

� Facilitate District and support t dlg&hs to LED unit

Greater Taung LM Yes 2016

Yes

Yes

LED Manager Agriculture officer SMME officer

� Lack of grants to fund LED projects

� Lack of integration between sector Department & private sectors to align their LED programmes.

� The LED Strategy was reviewed in 2016

Naledi LM Yes

2012

Yes

Yes

LED Manager LED officer

� There is a need to assist the Municipality with the development of Industrialisation Programme.

� Facilitate Development of LED strategy

� Facilitate District and support to dlg&hs LED unit

Kagisano Molopo LM

Yes 2016

No

Yes

Acting Director LED Manager LED Senior Management 3 LED Officer

� Rural Municipality and must focus on supporting the agriculture sector that can create opportunity for development of emerging farmers

� LED Strategy reviewed 2016 to incorporated into one , as previously there was separate strategy for Kagisano and Molopo

Mamusa LM Yes 2016

Yes

Yes

LED Manager LED Officer

� Rural Municipality and must focus on supporting the agriculture sector that can create opportunity for development of emerging farmers

� LED Strategy needs to be reviewed to align to Provincial Pillars, National LED framework NDP.

� No budget to fund LED Programmes

Most Municipalities have LED strategies, but some are old need to be reviewed and be aligned to SDF and include government priorities. There is a Limited budget to implement the strategy. The LED plans promote development of communities but it remains the responsibility of the LED units but there is still a need to plan in a holistic manner within the Municipalities. Red tape reduction issues are not addressed in terms of land use schemes, by-laws that can retain or attract investment in Municipalities. LED plans not aligned to Spatial Development Framework (SDF) thus LED implementation still target the viable nodes in Municipalities. The development or review of Spatial Development Framework does not inform the development or review of LED strategies in Municipalities. Departments work in Silos that contribute to spatial mismatch in terms of development. This affect investment promotion in most Municipalities as red tape issues on land use and acquisition are not addressed. The land use and allocation in communal land does not encourage sustainable infrastructure development to address investment promotion. Implementation and monitoring of Procurement policy to address empowerment of local business and communities does not include LED units in most Municipalities.

37


Capacity in LED units has improved over the years. LED units still operate on a minimum budget which in most Municipalities influence LED plans. LED cuts across the Departments, internal planning and coordination must be a priority.

4.2 Number of jobs created through LED initiatives and capital projects (MIG)


Not doing well Potential to do well

1. Lekwa- Teemane LM 2. Ventersdorp LM 3. Tswaing LM 4. Ditsobotla LM and 5. Kgetleng revier LM

1. Naledi LM 2. Dr Kenneth Kaunda DM 3. Mahikeng LM 4. Rustenburg LM 5. Madibeng LM 6. Moretele LM

Municipalities Jobs created through LED

Jobs created through EPWP

Jobs created through MIG

Ngaka Modiri Molema DM 0 212 25 Ratlou LM 67 155 69 Mahikeng LM N/A 500 201 Ramotshere Moiloa LM 1588 1665 102 Tswaing LM No info No info 61 Ditsobotla LM No info No info 123 Maquassi-Hills LM 323 145 196 City of Matlosana 868 868 141 Ventersdorp LM No info 77 100 Tlokwe City Council LM 242 600 385 Dr Ruth Segomotsi Mompati DM

30 No info 131

Kagisano Molopo LM No info 250 66 Lekwa-Teemane LM 64 480 97 Greater Taung LM 1600 137 245 Naledi LM No info 311 148 Mamusa LM No info No info 106 Bojanala Platinum DM No info 60 No info Rustenburng LM 1004 No info 120 Moretele LM No info No info 462 Kgetleng River LM No info No info 104 Moses Kotane LM 28 198 222 Madibeng LM 2523 4500 292 Total 8337 10 158 462

38


4.4 Interventions

LED support achievements

PERFORMANCE INDICATOR

ACHIEVEMENT CHALLENGES AND REMEDIAL ACTIONS

Number of Municipalities supported with 5% MIG budget allocation for LED infrastructure projects in priority VTSD

10 Municipalities supported with LED Business plans to Utilize 5% of MIG

� Maquassi hills LM � Ventersdorp LM � Lekwa-Teemane LM � Tswaing LM � Naledi LM � Mamusa LM � City of Matlosana � Kgetleng LM � Ramotshere Moiloa LM � Ditsobotla LM

During the said financial year the Department in partnership with Salga ,common wealth local government forum (CLGF) continued to provide support to small town regeneration programme to :

� City of Matlosana � Madibeng LM � Moretele LM

Red tape reduction workshop held in partnership with FEED

� LED unit within Municipalities do not have all the information on how to access the funds.

� Awareness workshops held to encourage Municipalities to apply for this funds

� Poor attendance by Municipalities.

Number of work opportunities created through the CWP in Municipalities

� Number of work opportunities target per Month for this financial year was 16500.

� CWP implemented in 17 Municipalities

� Sites visits conducted to monitored performance of the program

� Monthly provincial Steering committee meeting held

� Quartley cluster meeting held between North West Province , Kwa Zulu natal and Free State

� Non functional of Local Reference committees

� Drop out and Absenteeism by participants in the program

39


Recommendations

� LED Strategies must be reviewed and be aligned to national and provincial priorities to strengthen the economic sectors, and must encourage regional economic development that will develop value chains linked to corridor development. This will encourage a diverse economic base that will yield to job creation and address the unemployment and inequality in Municipalities.

� SPLUMA allows the review of Spatial Development Frameworks (SDFs) and Land Use Schemes (LUS). The municipal infrastructure programme must strengthen economic nodes and corridors that will revive local economies in VTSD.

� Municipalities must then develop investment packages and insensitive that will promote and attract investment in VTSD areas.

� Municipalities must leverage on the opportunities in the Strategic Infrastructure Programme (SIPs) which aims to promote effective, competitive and responsive infrastructure that will benefit in strengthening local economic activities, with SMME and Job creation spinoffs.

� Municipalities must utilise the 5% MIG aimed to support a sustainable economic infrastructure assets that will leverage on the industrial value chain by investing in industrial opportunities in VTSD areas. (e.g. Fresh Produce Market –linkages to Agri- Parks)

� Municipal Infrastructure Grant must be utilised to strengthening SMMEs, Industries and development of skills in Municipalities.

� Municipalities’ must ensure that they develop Supply Chain policies that will strengthen capacity of local SMMEs and industries within the Municipality as it will enhance financial viability in Municipalities.

� Community Work Programmes must be implemented to address service delivery challenges. Some of the CWP and EPWP participants must be linked to FET colleges to acquire artisan skills to support Infrastructure maintenance programmes in Municipalities.

� There is a need to strengthen technical capacity of LED units in economic research, spatial economic planning, developing trade, SMME development and stakeholder management capacity.

� Local Economic Development programmes cuts across the Departments in Municipalities. Municipalities must strengthen coordination and there will be spin-offs in the development of sustainable assets, SMME development, Skills development and all this, contribute to the financial viability in Municipalities.

� The Department together with Department of trade and industry and FEED to assist struggling Municipalities to review the LED strategies.

40


5 KPA 4: Municipal Financial Viability and Management

Summary

According to the audited Annual Financial Statements, the municipal financial indicators can be summarised as follows:

Finance Core Indicators

Indicators 2014/15 2015/16

No. of Municipalities with persistent negative cash balances 0 4 No of Municipalities under/ (over) spending of original operating budgets 3 5

(19) (10) No. of Municipalities under spending of original capital budgets 20 17

5.1 Municipal Property Rates Act

1 Purpose

1.1 To provide an overview of progress report on the status for the implementation of the Local Government Municipal Property Rates Act, 2004, with specific focus on the compilation and implementation of the General valuation roll and supplementary valuation rolls compiled in terms of the MPRA, as well as compliance with section 14 and 6 of MPRA and the risks associated with any non compliance to the Act.

CURRENT STATUS OF MPRA IMPLEMENTATION

Municipalities implemented their second and third generation valuation roll in terms of the MPRA. The following table represent Municipalities not necessarily in a particular order of implementation.

MUNICIPALITIES MPRA IMPLEMENTATION Moses Kotane LM � The Municipality is in the process of compiling the third

general Valuation Roll for implementation on the 1st July 2016. � The Municipality received the supplementary valuation roll on 25 May 2015. � Section 49 processes were correctly followed and the advertisement for the inspection of the supplementary was open from the 25 May 2015 to 10 July 2015 � The Municipality has promulgated their 2015/16 property tariffs on the 26 June 2015

Mahikeng LM

� Second generation valuation roll implemented on 1 July 2011. � HCB valuers were appointed to focus on performing supplementary valuations for the Municipality. � The Department received an application from the Municipality requesting extension of the general valuation roll for the year 2015/16 Section 32(2)(b) of the MPRA and the application was approved.

41


MUNICIPALITIES MPRA IMPLEMENTATION � However then Municipality failed to compile a new valuation roll for implementation 1st July 2016. � In accordance with circular 7 the period of the validity of the Municipality’s valuation roll may be extended only in terms of the Municipal Property Rates Act as it stands before the effective date of the Amendment Act of 2014.This means that the Municipality’s valuation roll may only be valid for one additional financial year, as allowed by the MEC’s first extension granted in terms of the principle act. The Municipality’s valuation roll cannot therefore be automatically valid for an additional year or two.

� Also according to Municipal Property Rates Act as it stands before the effective date of the Amendment Act of 2014, the valuation roll of a Municipality remains valid for one year after the date on which the roll has lapsed if the provincial executive intervenes in a Municipality in terms of section 139 of the Constitution either before or after that date, provided that the intervention was caused by the Municipality's failure- a. to determine a date of valuation for its general valuation in terms of section 31; or b. to designate a person as its municipal valuer in terms of section 33. The Department intervened and evoked Sec 139 to allow the Municipality’s valuation roll another year in terms of Sec 32(3) , the Municipality through an administrator appointed by the Department applied for an extension and it was granted by the MEC on the 30 June 2016, the approval extends the Municipality’s valuation roll to the 30th June 2017. The Municipality promulgated their tariffs for the year 2015/16 on July 2015.

City of Tlokwe LM

� Tlokwe Municipality implemented a second valuation roll on 1 July 2013 � The Municipality received the supplementary valuation roll on 31 March 2015. � Section 49 was advertised from the 14 April to 30 June 2015.whic indicate that inspection of the supplementary is open from the 17 April 2015 to 22 May 2015 � The Municipality promulgated their tariffs for the year 2015/16 on the 07 July 2015.

Ventersdorp LM

� Venterdorp Municipality implemented their second valuation roll on 01 July 2014, � The Municipality received the supplementary valuation roll on 31 March 2015. � Section 49 was advertised during April 2015. � The Municipality has promulgated their 2015/16 property tariffs on the 16 June 2015.

Ramotshere Moiloa LM

� The Municipality implemented a new valuation roll on 1 July 2013. � The Department has assisted with regards to the conclusion of the appeal process on queries raised on the 3rd supplementary roll. � The Agricultural union has written to the Municipal Manager

42


MUNICIPALITIES MPRA IMPLEMENTATION requesting the Municipality to avail account statements in line with the applicable legislation to them for payment but the process is dragging. � Currently the Municipality is compiling a third supplementary valuation roll which will combine General Valuation roll, 1st and 2nd Supplementary Valuation roll end of July 2016. � The Municipality has granted a 15% drought relief for the financial year 2015/16.

Ditsobotla LM

� These valuation rolls are still valid until 30 June 2015. � Formal discussions were held with senior management and the indication is that both Municipalities will apply for extension. Ditsobotla already submitted their application to extent with another year. Meaning they will start with the SCM processes for a new valuer early in 2015 to ensure enough time for the MPRA processes to unfold. � The Department has received an application from the Municipality requesting extension of the general valuation roll for the year 2015/16 Section 32(2)(b) of the MPRA and the application was approved. � However the Municipality failed to compile a new valuation roll to be implemented 1st July 2016. � In accordance with circular 7 the period of the validity of the Municipality’s valuation roll may be extended only in terms of the Municipal Property Rates Act as it stands before the effective date of the Amendment Act. This means that the Municipality’s valuation roll may only be valid for one additional financial year, as allowed by the MEC’s first extension granted in terms of the principle act. The Municipality’s valuation roll cannot therefore be automatically valid for an additional year or two. � Also according to Municipal Property Rates Act as it stands before the effective date of the Amendment Act , the valuation roll of a Municipality remains valid for one year after the date on which the roll has lapsed if the provincial executive intervenes in a Municipality in terms of section 139 of the Constitution either before or after that date, provided that the intervention was caused by the Municipality's failure- � to determine a date of valuation for its general valuation in terms of section 31; or � To designate a person as its Municipal valuer in terms of section 33. � The Department intervened and evoked Sec 139 to allow the Municipality’s valuation roll another year in terms of Sec 32(3) , the Municipality through an administrator appointed by the Department applied for an extension and it was granted by the MEC on the 30 June 2016, the approval extends the Municipality’s valuation roll to the 30th June 2017. � The Municipality does not have any steering committee meetings to head the processes of the valuation roll as they unfold which contributes to all the non compliance to the act by the Municipality , only one official is involve in the process. � The Municipality has promulgated their 2015/16 property

43


MUNICIPALITIES MPRA IMPLEMENTATION tariffs on the 16 July 2015

Kgetlengrivier LM

� Second generation valuation implemented 01 July 2014, � The Municipality received the supplementary valuation roll on 11 June 2015. � The section 49 of the municipal property rates process of the supplementary roll was correctly followed. � The Municipality promulgated their tariffs for the year 2015/16 on the 10 November 2015 � The MEC of Local Government and Human settlement has approved the application for late promulgation of the 2015/16 financial year.

Moretele LM

� Second generation valuation implemented 01 July 2014. � Supplementary valuation was implemented on the 1 July 2015 � All legislative requirements were observed and adhered to, section 49 processes. � The Municipality has promulgated their 2015/16 property tariffs on the 01 July 2015.

Madibeng LM

� Second generation valuation implemented 01 July 2014, � The Municipality received the supplementary valuation roll on the 11 Novemeber 2015. � Section 49 processes of the supplementary valuation were advertised during February and March 2016. � The Municipality has promulgated their 2015/16 property tariffs on the 26 June 2015

Rustenburg LM

� Second generation valuation implemented 01 July 2014, � The Municipality received the supplementary valuation roll on 26 March 2015. � Section 49 was advertised from the 14 April to 30 June 2015. � All the appeals made against the supplementary roll were concluded on. � The Municipality has promulgated their 2015/16 property tariffs on the 25 June 2015.

Matlosana LM

� Second generation valuation implemented 01 July 2014, � The Municipality received the supplementary roll on 31 March 2015. � Section 49 processes were advertised during April 2015 for the public to inspect the supplementary roll. � The advertisement for the inspection of the supplementary was open from the 04 May 2015 to 04 June 2015. � The Municipality has promulgated their 2015/16 property tariffs on the 07 July 2015

Lekwa Teemane LM � The Municipality implemented their first certified general valuation roll in July 2011 which expired on the 30 June 2015. � The Municipality sent the application to extend the valuation roll on the 10 April 2015 and the application for the extension of the valuation roll has been approved by MEC for the year 2015/16. � However then Municipality failed to compile a new valuation roll to be

44


MUNICIPALITIES MPRA IMPLEMENTATION implemented 1st July 2016. � In accordance with circular 7 the period of the validity of the

Municipality’s valuation roll may be extended only in terms of the Municipal Property Rates Act as it stands before the effective date of the Amendment Act of 2014.This means that the Municipality’s valuation roll may only be valid for one additional financial year, as allowed by the MEC’s first extension granted in terms of the principle act. The Municipality’s valuation roll cannot therefore be automatically valid for an additional year or two.

� Also according to Municipal Property Rates Act as it stands before the effective date of the Amendment Act of 2014, the valuation roll of a Municipality remains valid for one year after the date on which the roll has lapsed if the provincial executive intervenes in a Municipality in terms of section 139 of the Constitution either before or after that date, provided that the intervention was caused by the Municipality's failure- to determine a date of valuation for its general valuation in terms of section 31; or to designate a person as its Municipal valuer in terms of section 33.

� The Department intervened and evoked Sec 139 to allow the Municipality’s valuation roll another year in terms of Sec 32(3) , the Municipality through an administrator appointed by the Department applied for an extension and it was granted by the MEC on the 30 June 2016

� The tariffs for the year 2015/16 Financial year were only promulgated on the 27th October 2015, And have applied for MEC condonation for non compliance with time period, which was approved

Maquassi Hills LM

� Second generation valuation implemented 01 July 2014, � Supplementary are done in cases of subdivision, consolidation

and section 78 [ For properties incorrectly omitted from valuation roll; substantially incorrectly valued during the last general valuation

� Municipality has received an objection on Section 52 outcome of Appeal Board which have been dealt with.

� The Municipality promulgated their tariffs for the year 2015/16 on the 10 July 2015

Greater Taung LM

� Second generation valuation implemented 01 July 2014, � All appeals have been dealt with regarding the General Valuation roll. � The Municipality has granted a 50% rebate for the financial

2015/16 to the farmers. � The Municipality promulgated their tariffs for the year 2015/16

on the 4th August 2015. Mamusa LM

� Second generation valuation implemented 01 July 2014, � All appeals have been dealt with regarding the General Valuation roll. � The Municipality received 2015/16 Supplementary valuation roll

on the 18th April 2016. � They have advertised their tariffs for the year 2015/16 in the

Stellalander Newspaper on the 17 June 2015 and they

45


MUNICIPALITIES MPRA IMPLEMENTATION promulgated their tariffs on the 2nd July 2015.

Kagisano / Molopo LM Implemented 1 July 2009

� Second generation valuation implemented 01 July 2014, � Letters were sent to individual rates payers informing them of

the Supplementary valuation roll in accordance with Sec 78 of the Municipal Property Rates Act.

Naledi LM Implemented 1 July 2009

� Second generation valuation implemented 01 July 2014, � They received the first pile of supplementary valuation roll on

the 15/03/2016 and sent the letters to individual owners of the properties.

� The supplementary valuations roll was implemented on the 05/05/2016. � For the 2015/2016 financial year farmers who paid their

account up until 28/02/2016 got 100% rebate. � They promulgated their tariffs for the year 2015/16 on the 18th August 2015.

Ratlou LM Implemented 1 July 2009

� Second generation valuation implemented 01 July 2014, � All appeals have been dealt with regarding the General Valuation roll. � The Department quoted the relevant legislation indicating that

the Municipality cannot change their tariffs within a financial year and as such a number of meetings unfolded wherein the Department assisted in trying to resolve the issue, the Municipality tried resolving the matter in terms of Sec 28(6) of the MFMA.

� The Municipality compiled their Supplementary Valuation roll in January 2016. � Section 49 notices were published in the Mail newspaper and in

the provincial gazette on the 15,22 and 25 January 2016. � Individual notices were sent to all the rate payers who are in

the Supplementary Valuation roll. � The Municipality implemented the Supplementary Valuation roll

on the 1st March 2016 � The Municipality promulgated their tariffs for the year 2015/16

on the 26 June 2015. Tswaing LM Implemented 1 July 2009

� Second generation valuation implemented 01 July 2014, � The Municipality received the Supplementary Valuation roll in April 2016. � In terms of Sec 49 processes, the notice was published for

inspection of the Supplementary valuation roll and lodging of objections on the local News paper (The Mail and Noordwester ) from 21 April 2016 -20 May 2016.

� The Municipality promulgated their tariffs for the year 2015/16 on the 27th July 2015

Amendments to the MPRA.

� Local Government: Municipal Property Rates Amendment Act, 2014 (Act 29 of 2014), was assented to by the President on 15 August 2014.

� The amendments were implemented with effect from 1 July 2015.

46


� The Municipalities were made aware of the compliance sections of the MPRA that have changed due to the amendments.

Recommendation

� The Department will continue to play a more hands on role as the budget process unfolding in order to ensure that the tariff calculations are done cost effectively and are affordable but still affording the Municipality the necessary revenue it can derive from Property Tax. This will also ensure limited disputes declared by rate payers as there will be public participation ensured.

� With the approval of the Amendments Municipalities were closely monitored and all non compliance was addressed. As such Department has provided support through the MPRA unit in order to capacitate Municipalities to deal with the amendments moving forward.

FINANCIAL MANAGEMENT REPORTING

In terms of section 71(5) of the Municipal Finance Management (MFMA), Municipalities are required to submit to the relevant provincial treasury a monthly statement on the state of the Municipality’s budget, by no later than 10 working days after the end of the month. The statement must be in the form of a signed document and electronic format.

The MEC for Finance must then in terms of Section 71(7) submit a consolidated statement in the prescribed format on the state of Municipalities’ budgets per Municipality to the Provincial Legislature no later than 45 days after the end of each quarter.

Publishing this information is part of the evolving system of reporting envisaged by the MFMA. The aim is to assist in oversight of performance, address shortcomings, improve internal controls and facilitate service delivery. Publishing the section 71 information further improves transparency and fosters effective oversight, promotes fiscal discipline and provides a mechanism for measuring the ongoing performance of the Municipality.

The Department compiled the below assessment report based on the submission on the Local Government database as not all Municipalities are submitting such reports directly to the Department.

The structure of the report will mainly cover Capital Funding and Capital Expenditure, Municipal revenue and Operating Expenditure, and also address cash flow analysis and the projections thereof, debt management, Creditors management and intervention measures

47


5.2

Ca

pit

al

Fu

nd

ing

Sour

ces

of c

apita

l fun

ding

as

at 3

0 Ju

ne 2

016.

For

the

impl

emen

tatio

n of

Cap

ital

proj

ects

, th

e hu

ge c

apita

l fu

ndin

g is

com

ing

from

Mun

icipa

l In

frast

ruct

ure

gran

ts a

nd s

mal

ler

perc

enta

ge s

ourc

ed f

rom

Ext

erna

l lo

ans.

Mun

icipa

litie

s ar

e no

t do

ing

wel

l in

ter

ms

of r

aisin

g in

tern

ally

gen

erat

ed f

unds

to

cate

r fo

r de

velo

pmen

ts in

the

ir ar

eas,

mos

tly h

undr

ed p

erce

nt d

epen

ded

on M

IG fu

ndin

g. T

he t

otal

yea

r to

dat

e Ca

pita

l Fun

ding

for

the

four

(4)

Di

stric

ts a

mou

nted

to R

2 4

70

36

2 o

ut

of

the

to

tal

bu

dg

et

of

R3

11

6 7

66

wh

ich

wa

s a

dju

ste

d t

o R

3 7

09

67

3.

Bo

jan

ala

Pla

tin

um

Dis

tric

t M

un

icip

ali

ty

Ori

gin

al

Bu

dg

et

Ad

juste

d

Bu

dg

et

To

tal

1st

Qu

art

er

To

tal

2n

d

Qu

art

er

To

tal

3rd

Q

ua

rte

r T

ota

l 4

th

Qu

art

er

Ye

ar

to

da

te

%

Sp

en

t D

eta

il

Ex

tern

al

Lo

an

In

tern

al

Co

ntr

i G

ran

ts

Oth

er

Mor

etel

e 12

4 21

5 22

6 29

6 23

423

79

089

54

706

53

447

21

0 66

5 93

12

803

-

187

304

10 5

58

Mad

iben

g 29

2 46

1 31

9 13

9 13

164

49

565

73

346

14

5 26

2 28

1 33

6 88

-

9 67

8 27

1 65

8 -

Rust

enbu

rg

1 06

3 74

8 1

297

131

130

695

120

602

182

804

169

697

603

798

47

33 5

50

- 57

0 24

8 -

Kget

leng

rivie

r 27

852

27

852

6

836

4 34

4 5

914

7 07

3 24

167

87

-

- 22

516

1

651

Mos

es K

otan

e 15

0 25

7 22

0 42

6 23

885

39

869

44

993

68

576

17

7 32

4 80

55

1 -

107

829

68 9

43

Boja

nala

Dist

rict

965

2 85

5 10

9 46

0 3

179

- 3

748

131

- -

3 74

8 -

To

tal

1 6

59

49

8

2 0

93

69

9

19

8 1

12

2

93

92

9

36

4 9

42

4

44

05

5

1 3

01

03

8

62

4

6 9

04

9

67

8

1 1

63

3

03

8

1 1

52

48


Ng

ak

a M

od

iri

Mo

lem

a D

istr

ict

Mu

nic

ipa

lity

O

rig

ina

l B

ud

ge

t A

dju

ste

d

Bu

dg

et

To

tal

1st

Qu

art

er

To

tal

2n

d

Qu

art

er

To

tal

3rd

Q

ua

rte

r T

ota

l 4

th

Qu

art

er

Ye

ar

to d

ate

%

Sp

en

t D

eta

il

Ex

tern

al

Lo

an

In

tern

al

Co

ntr

i G

ran

ts

Oth

er

Ratlo

u 33

205

82

828

7

814

30 2

05

3 88

5 26

849

68

753

83

24

571

-

27 3

69

16 8

14

Tsw

aing

30

190

30

190

7

777

2 91

5 11

247

4

631

26 5

70

88

- -

26 5

70

- M

afike

ng

59 1

84

105

534

14 2

45

33 2

86

18 7

15

6 73

5 72

981

69

23

-

60 5

17

12 4

41

Dits

obot

la

37 3

92

37 3

92

5 41

0 7

914

1 96

4 96

4 16

252

43

-

- 16

252

-

Ram

otsh

ere

105

703

67 6

94

8 00

6 19

385

4

891

12 0

71

44 3

53

66

- -

32 1

12

12 2

41

Ngak

a M

odiri

28

2 76

4 27

7 49

5 15

700

32

323

13

561

27

285

88

869

32

-

- 86

381

2

488

To

tal

54

8 4

38

6

01

13

3

58

95

2

12

6 0

28

5

4 2

63

7

8 5

35

3

17

76

9

53

2

4 5

94

-

24

9 2

01

4

3 9

84

Dr

Ru

th S

eg

om

ots

i M

om

pa

ti D

istr

ict

Mu

nic

ipa

lity

O

rig

ina

l B

ud

ge

t A

dju

ste

d

Bu

dg

et

To

tal

1st

Qu

art

er

To

tal

2n

d

Qu

art

er

To

tal

3rd

Q

ua

rte

r T

ota

l 4

th

Qu

art

er

Ye

ar

to

da

te

% S

pe

nt

De

tail

Ex

tern

al

Lo

an

In

tern

al

Co

ntr

i G

ran

ts

Oth

er

Nale

di

41 3

63

41 3

63

5 64

3 2

608

3 94

0 26

912

39

103

95

-

- 34

448

4

655

Mam

usa

28 7

23

31 0

79

7 33

6 5

867

11 3

41

2 92

9 27

473

88

-

- 26

271

1

202

Grea

ter T

aung

71

111

71

110

10

213

10

536

12

140

14

865

47

753

67

-

- 36

487

11

266

Le

kwa-

Teem

ane

20 5

04

23 3

04

3 19

6 7

985

5 34

5 2

011

18 5

37

80

- -

18 2

26

311

Kagi

sano

-M

olop

o 60

154

60

154

14

417

10

780

5

715

6 66

9 37

580

62

-

- 17

618

19

963

Dr

Ruth

M

ompa

ti 26

4 86

4 25

5 33

6 72

888

71

314

47

404

11

0 34

5 30

1 95

1 11

8 -

- 30

1 95

1 -

To

tal

48

6 7

19

4

82

34

6

11

3 6

93

1

09

09

0

85

88

5

16

3 7

31

4

72

39

8

98

-

- 4

35

00

1

37

39

7

49


5.3

Ca

pit

al

Ex

pe

nd

itu

re

The

tota

l orig

inal

cap

ital b

udge

t fo

r al

l Mun

icipa

litie

s in

the

pro

vince

am

ount

ed t

o R3

.1 b

illion

and

was

adj

uste

d up

war

d to

R3.

4 bi

llion.

The

cap

ital

expe

nditu

re a

s at

end

of

the

four

th q

uarte

r w

as R

2.5

billio

n or

73

perc

ent

of t

he a

djus

ted

budg

et.

Mos

t sp

endi

ng w

as i

ncur

red

on r

oads

and

pa

vem

ents

at R

1.1

billio

n or

44

perc

ent,

follo

wed

by

inve

stm

ent o

n w

ater

infra

stru

ctur

e pr

ojec

ts a

t R80

9 m

illion

or 3

3 pe

rcen

t, ot

her p

roje

cts

at R

398

milli

on o

r 16

perc

ent a

nd e

lect

rical

infra

stru

ctur

e pr

ojec

ts a

t R17

0 m

illion

or 7

per

cent

.

This

is a

low

spe

ndin

g ra

te w

hen

com

pare

d to

the

expe

cted

ave

rage

of 1

00 p

erce

nt fo

r the

per

iod

unde

r rev

iew

. Thi

s po

or p

erfo

rman

ce is

attr

ibut

ed to

la

ck o

f ca

pacit

y w

ithin

the

Pro

ject

Man

agem

ent

Units

(PM

U) c

oupl

ed w

ith i

neffe

ctive

Sup

ply

Chai

n m

anag

emen

t (S

CM)

proc

ess

expe

rienc

ed b

y M

unici

palit

ies.

The

exp

endi

ture

rate

impl

ies

that

the

Mun

icipa

litie

s ar

e ex

pect

ed to

repo

rt un

spen

t con

ditio

nal g

rant

s of

app

roxim

atel

y 30

per

cent

.

Dr

Ke

nn

eth

Ka

un

da

Dis

tric

t M

un

icip

ali

ty

Ori

gin

al

Bu

dg

et

Ad

juste

d

Bu

dg

et

To

tal

1st

Qu

art

er

To

tal

2n

d

Qu

art

er

To

tal

3rd

Q

ua

rte

r T

ota

l 4

th

Qu

art

er

Ye

ar

to d

ate

%

S

pe

nt

De

tail

Ex

tern

al

Lo

an

In

tern

al

Co

ntr

i G

ran

ts

Oth

er

Vent

ersd

orp

26 3

00

44 3

56

1 74

3 4

150

2 95

8 9

759

18 6

10

42

- -

16 9

77

1 63

3 Tl

okw

e 22

4 07

7 27

7 71

2 39

954

61

835

36

452

73

469

21

1 71

0 76

-

151

462

60 2

47

- M

atlo

sana

13

8 92

7 14

3 00

5 5

292

21 5

58

21 6

62

53 1

20

101

632

71

- -

90 9

52

10 6

80

Maq

uass

i Hills

27

235

58

804

7

913

13 8

94

2 66

5 20

324

44

796

76

-

- 42

371

2

426

Dr

Kenn

eth

Kaun

da

5 57

2 8

618

219

97

1 64

5 44

9 2

410

28

- 2

410

- -

To

tal

42

2 1

11

5

32

49

5

55

12

0

10

1 5

34

6

5 3

82

1

57

12

2

37

9 1

57

7

1

- 1

53

87

2

21

0 5

47

1

4 7

39

50


Bo

jan

ala

Pla

tin

um

Dis

tric

t M

un

icip

ali

ty

Ori

gin

al

Bu

dg

et

Ad

juste

d

Bu

dg

et

To

tal

1st

Qu

art

er

To

tal

2n

d

Qu

art

er

To

tal

3rd

Q

ua

rte

r T

ota

l 4

th

Qu

art

er

Ye

ar

to

da

te

%

Sp

en

t D

eta

il

Wa

ter

Ele

ct

Ro

ad

s

Oth

er

Mor

etel

e 12

4 21

5 22

6 29

6 23

423

79

089

54

706

53

447

21

0 66

5 93

85

675

7

807

95 4

39

21 7

44

Mad

iben

g 29

2 46

1 31

9 13

9 13

164

49

565

73

346

14

5 26

2 28

1 33

6 88

10

1 82

9 19

699

13

3 05

7 26

751

Ru

sten

burg

1

063

748

1 29

7 13

1 13

0 69

5 12

0 60

2 18

2 80

4 16

9 69

7 60

3 79

8 47

44

603

62

393

11

9 50

7 37

7 29

5 Kg

etle

ngriv

ier

27 8

52

27 8

52

6 83

6 4

344

5 91

4 7

073

24 1

67

87

556

- 21

960

1

651

Mos

es K

otan

e 15

0 25

7 22

0 42

6 23

885

39

869

44

993

68

576

17

7 32

4 80

36

051

9

937

62 6

48

68 6

87

Boja

nala

Dist

rict

965

2 85

5 10

9 46

0 3

179

- 3

748

131

- -

- 3

748

To

tal

1 6

59

49

8

2 0

93

69

9

19

8 1

12

2

93

92

9

36

4 9

42

4

44

05

5

1 3

01

03

8

62

2

68

71

4

99

83

6

43

2 6

11

4

99

87

6

Ng

ak

a M

od

iri

Mo

lem

a D

istr

ict

Mu

nic

ipa

lity

O

rig

ina

l B

ud

ge

t A

dju

ste

d

Bu

dg

et

To

tal

1st

Qu

art

er

To

tal

2n

d

Qu

art

er

To

tal

3rd

Q

ua

rte

r T

ota

l 4

th

Qu

art

er

Ye

ar

to

da

te

% S

pe

nt

De

tail

Wa

ter

Ele

ct

Ro

ad

s

Oth

er

Ratlo

u 33

205

82

828

7

814

30 2

05

3 88

5 26

849

68

753

83

1

465

1 84

2 51

415

18

786

Ts

wai

ng

30 1

90

30 1

90

7 77

7 2

915

11 2

47

4 63

1 26

570

88

-

2 43

9 14

881

9

251

Maf

ikeng

59

184

10

5 53

4 14

245

33

286

18

715

6

735

72 9

81

69

- 4

998

49 7

22

18 2

61

Dits

obot

la

37 3

92

37 3

92

5 41

0 7

914

1 96

4 96

4 16

252

43

96

4 72

6 14

321

24

2 Ra

mot

sher

e 10

5 70

3 67

694

8

006

19 3

85

4 89

1 12

071

44

353

66

-

8 99

7 25

988

9

368

Ngak

a M

odiri

28

2 76

4 27

7 49

5 15

700

32

323

13

561

27

285

88

869

32

85

873

-

1 71

2 1

284

To

tal

54

8 4

38

6

01

13

3

58

95

2

12

6 0

28

5

4 2

63

7

8 5

35

3

17

76

9

53

8

8 3

02

1

9 0

02

1

58

03

9

57

19

2

51


5.4

Op

era

tin

g R

eve

nu

e

Tota

l bud

gete

d op

erat

ing

reve

nue

for

North

Wes

t M

unici

palit

ies

amou

nted

to

R14.

3 bi

llion,

and

adj

uste

d to

R16

.6 b

illion

and

R14

.9 b

illion

of

the

budg

eted

rev

enue

has

bee

n bi

lled

at t

he e

nd o

f th

e fin

ancia

l ye

ar,

whi

ch c

an b

e tra

nsla

ted

to 9

0 pe

rcen

t of

the

billi

ng.

Serv

ice c

harg

es b

illed

cont

ribut

ed th

e la

rges

t am

ount

of R

6.4

billio

n or

48.

1 pe

rcen

t of t

he to

tal r

even

ue b

illed.

Gov

ernm

ent g

rant

s is

the

seco

nd la

rges

t sou

rce

of re

venu

e w

hich

acc

ount

s fo

r R4

.1 b

illion

or

31 p

erce

nt

of th

e to

tal r

even

ue, f

ollo

wed

by

Prop

erty

rat

es a

nd O

ther

rev

enue

are

at R

1.5

billio

n an

d R1

.3 b

illion

re

spec

tivel

y.

Dr

Ru

th S

eg

om

ots

i M

om

pa

ti D

istr

ict

Mu

nic

ipa

lity

O

rig

ina

l B

ud

ge

t A

dju

ste

d

Bu

dg

et

To

tal

1st

Qu

art

er

To

tal

2n

d

Qu

art

er

To

tal

3rd

Q

ua

rte

r T

ota

l 4

th

Qu

art

er

Ye

ar

to

da

te

%

Sp

en

t D

eta

il

Wa

ter

Ele

ct

Ro

ad

s

Oth

er

Nale

di

41 3

63

41 3

63

5 64

3 2

608

3 94

0 26

912

39

103

95

-

6 38

5 21

975

10

743

M

amus

a 28

723

31

079

7

336

5 86

7 11

341

2

929

27 4

73

88

- 3

337

12 7

87

11 3

49

Grea

ter T

aung

71

111

71

110

10

213

10

536

12

140

14

865

47

753

67

-

- 34

736

13

017

Le

kwa-

Teem

ane

20 5

04

23 3

04

3 19

6 7

985

5 34

5 2

011

18 5

37

80

- -

- 18

837

Ka

gisa

no-M

olop

o 60

154

60

154

14

417

10

780

5

715

6 66

9 37

580

62

-

9 87

8 -

27 7

02

Dr R

uth

Mom

pati

264

864

255

336

72 8

88

71 3

14

47 4

04

110

345

301

951

118

301

569

- -

382

To

tal

48

6 7

19

4

82

34

6

11

3 6

93

1

09

09

0

85

88

5

16

3 7

31

4

72

39

8

98

3

01

56

9

19

60

0

69

49

8

81

73

0

Dr

Ke

nn

eth

Ka

un

da

Dis

tric

t M

un

icip

ali

ty

Ori

gin

al

Bu

dg

et

Ad

juste

d

Bu

dg

et

To

tal

1st

Qu

art

er

To

tal

2n

d

Qu

art

er

To

tal

3rd

Q

ua

rte

r T

ota

l 4

th

Qu

art

er

Ye

ar

to

da

te

% S

pe

nt

De

tail

Wa

ter

Ele

ct

Ro

ad

s

Oth

er

Vent

ersd

orp

26 3

00

44 3

56

1 74

3 4

150

2 95

8 9

759

18 6

10

42

8 00

7 3

171

6 63

1 80

1 Tl

okw

e 22

4 07

7 27

7 71

2 39

954

61

835

36

452

73

469

21

1 71

0 76

84

161

39

332

52

469

35

748

M

atlo

sana

13

8 92

7 14

3 00

5 5

292

21 5

58

21 6

62

53 1

20

101

632

71

40 2

52

7 64

8 41

238

12

494

M

aqua

ssi H

ills

27 2

35

58 8

04

7 91

3 13

894

2

665

20 3

24

44 7

96

76

21 6

87

1 71

6 20

545

84

9 Dr

Ken

neth

Kau

nda

5 57

2 8

618

219

97

1 64

5 44

9 2

410

28

- -

- 2

410

To

tal

42

2 1

11

5

32

49

5

55

12

0

10

1 5

34

6

5 3

82

1

57

12

2

37

9 1

57

7

1

15

4 1

07

5

1 8

67

1

20

88

3

52

30

2

52


Bo

jan

ala

Pla

tin

um

Dis

tric

t M

un

icip

ali

ty

Ad

juste

d

Bu

dg

et

To

tal

1st

Qu

art

er

To

tal

2n

d

Qu

art

er

To

tal

3rd

Q

ua

rte

r T

ota

l 4

th

Qu

art

er

Ye

ar

to

da

te

%

Sp

en

t D

eta

il

Pro

pe

rty

Ra

tes

Se

rvic

e

Ch

arg

es

Gra

nts

O

the

r

Mor

etel

e 51

4 90

9 13

9 79

7 14

0 16

3 20

6 95

2 12

0 82

3 60

7 73

5 11

8 41

813

38

729

-

527

193

Mad

iben

g 1

842

585

431

947

238

849

454

590

588

977

1 71

4 36

3 93

29

2 79

6 59

8 14

7 -

823

421

Rust

enbu

rg

4 41

7 89

6 94

5 20

9 72

5 18

0 72

7 07

6 72

5 94

8 3

123

413

71

281

627

2 32

1 07

6 -

520

710

Kget

leng

rivie

r 14

9 58

3 63

950

61

079

23

738

34

718

18

3 48

5 12

3 7

256

63 7

61

- 11

2 46

7 M

oses

Kot

ane

839

927

187

804

174

023

146

039

119

160

627

026

75

98 9

05

125

928

- 40

2 19

3 Bo

jana

la

Dist

rict

301

093

129

903

96 6

00

75 9

61

565

303

029

101

- -

- 30

3 02

9

To

tal

8 0

65

99

3

1 8

98

61

0

1 4

35

89

4

1 6

34

35

6

1 5

90

19

1

6 5

59

05

1

81

7

22

39

7

3 1

47

64

1

- 2

68

9 0

13

Ng

ak

a M

od

iri

Mo

lem

a D

istr

ict

Mu

nic

ipa

lity

A

dju

ste

d

Bu

dg

et

To

tal

1st

Qu

art

er

To

tal

2n

d

Qu

art

er

To

tal

3rd

Q

ua

rte

r T

ota

l 4

th

Qu

art

er

Ye

ar

to

da

te

% S

pe

nt

De

tail

Pro

pe

rty

Ra

tes

Se

rvic

e

Ch

arg

es

Gra

nts

O

the

r

Ratlo

u 21

8 67

4 64

172

46

167

40

150

39

431

18

9 92

0 87

4

829

- -

185

092

Tsw

aing

20

0 71

7 80

698

22

990

66

215

24

248

19

4 15

1 97

16

366

55

134

-

122

652

Mah

ikeng

60

8 60

7 18

3 24

4 15

1 20

8 15

4 81

5 10

7 01

8 59

6 28

5 98

19

5 69

4 15

8 51

8 -

242

073

Dits

obot

la

375

745

80 6

14

82 9

71

85 7

59

75 3

08

324

652

86

23 0

22

180

101

- 12

1 53

0 Ra

mot

sher

e 35

0 98

5 82

880

39

734

41

013

76

607

24

0 23

4 68

19

993

69

540

-

150

701

Ngak

a M

odiri

81

5 74

8 22

3 96

5 26

5 24

0 17

7 71

3 27

064

69

3 98

2 85

-

1 01

4 -

692

968

To

tal

2 5

70

47

6

71

5 5

73

6

08

31

0

56

5 6

65

3

49

67

6

2 2

39

22

4

87

2

59

90

4

46

4 3

07

-

1 5

15

01

6

53


Dr

Ru

th S

eg

om

ots

i M

om

pa

ti D

istr

ict

Mu

nic

ipa

lity

A

dju

ste

d B

ud

get

To

tal

1st

Qu

art

er

To

tal

2n

d

Qu

art

er

To

tal

3rd

Q

ua

rte

r T

ota

l 4

th

Qu

art

er

Ye

ar

to

da

te

% S

pe

nt

De

tail

Pro

pe

rty R

ate

s

Se

rvic

e C

ha

rge

s

Gra

nts

O

the

r

Nale

di

387

252

93 6

82

101

355

82 7

36

61 7

31

339

504

88

36 7

19

149

289

- 15

3 49

6 M

amus

a 18

3 35

4 55

409

45

108

46

822

41

456

18

8 79

5 10

3 11

532

54

776

-

122

487

Grea

ter T

aung

26

5 80

8 10

6 42

6 32

257

89

696

4

514

232

893

88

11 9

44

8 20

4 -

212

745

Lekw

a-Te

eman

e 27

7 25

4 80

187

68

808

47

869

49

639

24

6 50

3 89

9

352

124

568

- 11

2 58

2 Ka

gisa

no-M

olop

o 15

0 43

2 65

598

42

7 33

499

8

413

107

937

72

11 6

28

- -

96 3

08

Dr R

uth

476

272

118

753

88 1

15

155

173

115

367

477

409

100

- -

- 47

6 27

2 T

ota

l 1

74

0 3

72

5

20

05

5

33

6 0

70

4

55

79

5

28

1 1

20

1

59

3

04

0

92

8

1 1

75

3

36

83

7

- 1

17

2 8

90

5.5

Op

era

tin

g E

xp

en

dit

ure

Mun

icipa

litie

s in

the

prov

ince

spe

nt R

13.2

billi

on o

r 88

perc

ent o

f the

tota

l ope

ratin

g ex

pend

iture

bud

get o

f R15

.1 b

illion

dur

ing

the

year

und

er re

view

. M

ost s

pend

ing

was

incu

rred

on “

Othe

r” e

xpen

ditu

re a

t R5.

3 bi

llion

whi

ch is

39.

1 pe

rcen

t of t

he t

otal

ope

ratin

g ex

pend

iture

incu

rred.

Bul

k pu

rcha

ses

and

Empl

oyee

Rel

ated

Cos

ts re

cord

ed s

pend

ing

of R

4.2

billio

n or

32

perc

ent a

nd R

3.5

billio

n or

28.

9 pe

rcen

t res

pect

ively.

Dr

Ke

nn

eth

Ka

un

da

Dis

tric

t

Mu

nic

ipa

lity

A

dju

ste

d B

ud

get

To

tal

1st

Qu

art

er

To

tal

2n

d

Qu

art

er

To

tal

3rd

Q

ua

rte

r T

ota

l 4

th

Qu

art

er

Ye

ar

to

da

te

% S

pe

nt

De

tail

Pro

pe

rty R

ate

s

Se

rvic

e C

ha

rge

s

Gra

nts

O

the

r

Vent

ersd

orp

146

800

63 4

85

27 8

32

21 2

57

23 1

67

135

741

92

14 0

54

59 0

53

- 62

634

Tl

okw

e 1

141

234

350

552

287

527

239

880

259

510

1 13

7 46

9 10

0 13

0 82

4 77

5 11

3 -

231

532

Mat

losa

na

2 49

5 80

8 88

5 79

0 60

5 41

2

600

676

507

075

2 59

8 95

3 10

4 30

8 99

7 1

443

370

- 84

6 58

7 M

aqua

ssi H

ills

339

047

89 1

73

80 1

87

235

516

61 5

35

466

511

138

25 7

69

265

724

- 17

4 91

8 Dr

Ken

neth

Kau

nda

195

695

75 5

84

56 9

42

42 9

12

301

175

739

90

- -

- 17

5 73

9 T

ota

l 4

31

8 5

84

1

46

4 5

84

1

05

7 9

00

1

14

0 2

41

8

51

58

8

4 5

14

3

13

1

05

4

79

64

4

2 5

43

26

0

- 1

49

1 4

10

54


Bo

jan

ala

Pla

tin

um

Dis

tric

t

Mu

nic

ipa

lity

A

dju

ste

d

Bu

dg

et

To

tal

Ye

ar

to

Da

te

Sp

en

din

g

% S

pe

nt

De

tail

Em

plo

yee

Re

late

d C

ost

Pro

vis

ion

fo

r W

ork

ing

Ca

pit

al

Bu

lk P

urc

ha

se

Oth

er

Mor

etel

e 38

9 69

0 23

0 78

3 59

69

321

-

18 7

49

142

713

Mad

iben

g 1

523

289

1 41

4 79

2 93

34

5 32

4 55

210

48

7 14

9 52

7 11

0 Ru

sten

burg

3

522

473

2 96

5 99

2 84

56

5 74

6 -

1 76

7 38

8 63

2 85

7 Kg

etle

ngriv

ier

137

592

134

458

98

40 3

89

- 34

062

60

007

M

oses

Kot

ane

713

803

651

535

91

149

247

52 6

66

57 1

93

392

430

Boja

nala

Dist

rict

298

228

306

347

103

146

032

- -

160

315

To

tal

6 5

85

07

5

5 7

03

90

7

87

1

31

6 0

59

1

07

87

6

2 3

64

54

1

1 9

15

43

2

Ng

ak

a M

od

iri

Mo

lem

a D

istr

ict

Mu

nic

ipa

lity

A

dju

ste

d B

ud

get

To

tal

Yea

r to

Date

S

pe

nd

ing

%

Sp

en

t D

eta

il

Em

plo

yee

Re

late

d C

ost

Pro

vis

ion

fo

r W

ork

ing

Ca

pit

al

Bu

lk P

urc

ha

se

Oth

er

Ratlo

u 13

5 84

5 10

5 60

6 78

46

274

-

- 59

332

Ts

wai

ng

169

997

143

303

84

65 0

65

- 40

444

37

795

M

ahike

ng

681

705

406

704

60

218

108

68 9

97

80 3

40

314

260

Dits

obot

la

371

877

456

313

123

152

969

39 4

81

199

861

64 0

02

Ram

otsh

ere

Moi

loa

283

290

232

878

82

108

022

- 39

747

85

109

Ng

aka

Mod

iri M

olem

a 50

3 25

6 57

4 30

8 11

4 26

5 81

6 -

- 30

8 49

2

To

tal

2 1

45

97

0

1 9

19

11

2

89

8

56

25

4

10

8 4

78

3

60

39

2

86

8 9

90

55


Dr

Ru

th S

eg

om

ots

i M

om

pa

ti D

istr

ict

Mu

nic

ipa

lity

A

dju

ste

d

Bu

dg

et

To

tal

Ye

ar

to D

ate

S

pe

nd

ing

%

Sp

en

t D

eta

il

Em

plo

yee

R

ela

ted

C

ost

Pro

vis

ion

fo

r W

ork

ing

Ca

pit

al

Bu

lk P

urc

ha

se

Oth

er

Nale

di

403

418

349

484

87

147

694

4 09

7 89

397

10

8 29

6 M

amus

a 18

8 37

7 12

7 82

5 68

47

527

5

109

32 1

76

43 0

14

Grea

ter T

aung

22

5 35

1 14

4 67

6 64

66

580

-

3 90

1 74

196

Le

kwa-

Teem

ane

321

419

217

013

68

43 5

87

33 9

59

65 2

93

74 1

74

Kagi

sano

-Mol

opo

116

600

94 5

19

81

22 8

31

- -

71 6

88

Dr R

uth

37

6 73

2 28

2 78

1 75

97

116

-

79 3

52

106

312

To

tal

1 6

31

89

7

1 2

16

29

8

75

4

25

33

5

43

16

5

27

0 1

19

4

77

68

0

Dr

Ke

nn

eth

Ka

un

da

Dis

tric

t

Mu

nic

ipa

lity

A

dju

ste

d

Bu

dg

et

To

tal

Ye

ar

to D

ate

S

pe

nd

ing

%

Sp

en

t D

eta

il

Em

plo

yee

R

ela

ted

C

ost

Pro

vis

ion

fo

r W

ork

ing

Ca

pit

al

Bu

lk P

urc

ha

se

Oth

er

Vent

ersd

orp

184

265

154

332

84

29 8

21

- 49

428

88

521

Tl

okw

e 1

185

132

1 19

6 04

1 10

1 29

2 15

5 5

000

391

372

507

514

Mat

losa

na

2 71

4 77

8 2

564

068

94

478

605

93 3

81

737

598

1 25

4 48

5 M

aqua

ssi H

ills

330

600

197

115

60

65 1

91

- 72

451

59

473

Dr

Ken

neth

Kau

nda

274

169

259

208

95

73 9

23

- -

185

284

To

tal

4 6

88

94

4

4 3

70

76

4

93

9

39

69

5

98

38

1

1 2

50

84

9

2 0

95

27

7

56


5.6 Debtors

Effective Debt collection Strategies is a crucial element of financial sustainability, non-payment by debtors is hampering on the ability of Municipalities to meet their planned expenditure, as they run the risk of not honouring commitments as they become due. Aged debtors analysis should be an early warning technique that must indicate monthly collection levels and non-performance of the collection levels. High or increasing levels of the absolute value of outstanding debts are clear indications that there are problems with revenue collection systems at Municipalities. The amount of outstanding debts is a serious challenge that requires joint efforts by all stakeholders to come up with innovative ways to manage and increase credit control and debt collection.

The total amount of outstanding debtors for all North West Municipalities during the year under review amounted to R9.6 billion, of which R8.2 billion or 85.9 percent is outstanding for more than 90 days. The households/Residential Debts accounts for 75 percent whereas Commercial/Business, Government and other debts account for 25 percent of the total outstanding debt.

Bojanala Platinum District

Ngaka Modiri Molema District

Amount % Amount % Amount % Amount % Amount %

Ratlou (31,374) -140 (68) 0 664 3 53,268 237 22,490 1 Tswaing 4,768 2 4,139 2 3,895 2 235,610 95 248,412 16 Mafikeng 31,056 4 20,619 2 22,716 3 765,276 91 839,667 55 Ditsobotla 20,222 7 8,324 3 8,355 3 234,130 86 271,031 18 Ramotshere Moiloa 7,576 5 2,913 2 2,076 1 131,079 91 143,643 9 Ngaka Modiri Molema 2,720 - - - - - 1,161 30 3,880 0

Total: NNMD 34,966 2 35,928 2 37,706 2 1,420,524 93 1,529,123 100 Source : IYM Summary Reports Received from the Municipalities

Debtor Age Analysis as at 30 June 2016 (R'000)

Municipality 0 - 30 Days 31 - 60 Days 61- 90 Days Over 90 Days Total


Moretele 6,216 3 6,296 3 6,128 3 201,549 92 220,189 4 Madibeng 99,093 8 57,416 5 48,453 4 1,060,210 84 1,265,172 25 Rustenburg 259,400 9 164,416 6 63,956 2 2,404,553 83 2,892,326 58 Kgetleng Rivier 73,591 36 3,595 2 2,891 1 123,204 61 203,281 4 Moses Kotane 34,280 8 15,214 3 14,568 3 383,915 86 447,976 9 Bojanala Platinum - - - - - - - - - -

Total BPD 472,580 9 246,937 5 135,995 3 4,173,431 83 5,028,944 100 Source : IYM Summary Reports Received from the Municipalities



57


Dr Ruth Segomotsi District

Dr Kenneth Kaunda District


Ventersdorp 5,610 5 4,430 4 3,813 4 90,307 87 104,160 4 Tlokwe 64,549 44 5,513 4 4,437 3 73,441 50 147,939 5 Matlosana 149,427 8 76,527 4 55,335 3 1,531,094 84 1,812,383 65Maquassi Hills 21,741 3 14,407 2 13,871 2 661,111 93 711,130 26Dr. Kenneth Kaunda - - - - - - 1,473 100 1,473 0

Total: DRKKDistrict 241,326 9 100,877 4 77,456 3 2,357,426 85 2,777,085 100




Naledi 11,144 4 7,113 3 12,372 5 236,733 89 267,362 29 Mamusa 6,277 4 4,277 2 3,141 2 163,253 92 176,948 19 Greater Taung 1,506 3 1,417 2 1,345 2 52,920 93 57,188 6 Molopo/Kagisano - 0 - 0 - 0 1,081 0 1,081 0 Lekwa-Teemane 14,619 4 7,807 2 6,822 2 377,383 93 406,631 44 Dr. Ruth Mompati Mompati t

- 0 - - 758 - 7,307 91 8,065 1

Total: DRRSMD 33,545 4 20,614 2 24,438 3 838,678 91 917,275 100 Source : IYM Summary Reports Received from the Municipalities



58


5.7

Go

ve

rnm

en

t D

eb

ts

The

repo

rted

outs

tand

ing

gove

rnm

ent d

ebt a

s at

30

June

201

6 is

R7

17

74

9 5

81

.18

mil

lio

n. A

lthou

gh th

e to

tal b

alan

ce is

hug

e th

e de

part

men

t in

part

ners

hip

with

FEE

D, h

ave

enga

ged

Gov

ernm

ent D

epar

tmen

ts o

win

g m

unic

ipal

ities

to re

duce

out

stan

ding

deb

t. By

the

end

of

finan

cial

yea

r thi

s exe

rcise

yie

lded

pay

men

ts to

the

valu

e of

R21

0 M

illio

n w

hich

was

pai

d to

Fift

een

(15)

mun

icip

aliti

es in

the

Prov

ince

Mun

icipa

lityPu

blic

Wor

ks(N

ation

al)Pu

blic W

orks

and

Road

sEd

ucat

ion

Healt

hSo

cial

Deve

lopme

ntRE

ADW

ater

Affa

irsTr

ansn

etNo

rth W

est

Hous

ing Co

rpRS

APr

ovinc

ial (O

ther

De

partm

ents)

Tota

l Am

ount

Bojan

ala

Mor

etele

1965

8704

19 65

8 704

.00

M

adibe

ng36

1060

61.6

2963

362.9

447

8202

9.81

4 519

089.4

2

29

200.8

515

1240

69.67

1582

72.27

1917

29.12

63 87

3 815

.68

Ru

stenb

urg

85 60

6 721

.45

Kg

etlen

grivie

r43

372.9

885

1735

.6430

1273

.2146

621.8

539

86.27

1 246

989.9

5

M

oses

Kota

ne26

7266

880

0818

9424

025

5800

1844

8511

5665

132

91 16

2 295

.00

Ng

aka M

odiri

Mole

ma D

istric

tRa

tlou

9043

936

5314

0520

7788

5927

6754

839

1281

7270

75 65

3 700

.00

Ts

waing

2632

540.7

680

2118

1654

22.5

1851

266.7

75 4

51 34

8.03

Mah

ikeng

275 0

67 88

2.00

Di

tsobo

tlaRa

motsh

ere |

Moil

oa19

3169

0.86

2990

877.3

163

101.6

711

4360

14.25

7962

48.67

17 21

7 932

.76

Dr

Ruth

Sego

mot

si M

ompa

ti Dist

rict

Naled

i2 3

43 23

8.85

9 084

102.3

288

4085

.1553

7238

0.55

2139

32.87

17 89

7 739

.74

M

amus

a55

2605

5638

010

3235

677

5422

2603

2415

1153

372 7

08 00

0.00

Grea

ter \

taun

g32

992 5

51.00

Lekw

a_Te

eman

e24

1191

9.483

7857

3.37

8439

.0124

8854

.7911

047 7

86.57

Dr Ke

nnet

h Kau

nda D

istric

tVe

nter

sdor

p10

0920

120

4238

110

6549

853

5159

1602

931

7070

025

472

2555

328 1

19 97

1.00

Tlokw

e59

2 785

.00

Mat

losan

aM

aqua

ssi H

ills61

5544

7046

7250

3925

520

585

1671

3069

632

9 451

359.0

0

56

122 0

42.69

171 2

16 29

2.66

25 30

0 090

.85

11

912 3

77.49

28

1 979

.00

19 50

5 556

.17

238 5

83.27

248 8

54.79

27

578 4

48.25

6 7

68 44

6.79

717 7

49 58

1.18

GOVE

RNM

ENT D

EBT A

S AT J

UNE 2

016

59


5.8 Creditors

In terms of Section 65(2) (e) of the MFMA, Municipalities must pay creditors within 30 days. Creditors outstanding amounted to R1.9 billion, of which R1.1 billion or 60 percent has been outstanding for more than 90 days. The Bulk Electricity account for R833 million or 43.5 percent followed by Bulk water at R676 million or 35.3 percent respectively. The trade creditors account for R249 million or 13 percent while other Creditors accounted for R157 million or 8.2 percent.




Ratlou 551 193 (179) -63 (200) -70 113 40 285 0 Tswaing 11,345 15 8,920 12 6,422 8 49,842 65 76,529 10 Mafikeng 24,967 11 9,454 4 6,441 3 177,752 81 218,614 28 Ditsobotla 17,621 10 47,521 26 39,882 22 80,025 43 185,424 24 Ramotshere 10,684 38 6,653 24 9,441 34 1,292 5 28,071 4 Ngaka Modiri Molema

29,235 11 401 0 1,720 1 235,191 1 266,548 34

Total 94,404 12 72,769 9 63,706 8 544,216 70 775,471 100

Creditors Age Analysis as at 30 June 2016 (R'000)



Moretele 9,163 98 181 0 - 0 - - 9,344 3 Madibeng 83,613 37 41,932 19 49,153 22 48,330 22 223,029 71 Rustenburg 101 37 9 3 35 13 130 47 276 0 Kgetleng Rivier 11,717 16 8,310 11 5,491 7 48,422 65 73,940 24 Moses Kotane 5,679 96 171 3 - - 83 - 5,932 2

Total 110,274 35 50,602 16 54,680 17 96,964 31 312,520 100



60


Dr Ruth Segomotsi Mompati District

Dr Kenneth Kaunda District


Ventersdorp 9,202 11 2,033 2 5,878 7 70,442 80 87,554 16 Tlokwe 5,144 56 1,425 16 23 0 2,597 0 9,189 2 City of Matlosana 123,845 36 61,581 18 56,648 16 102,465 30 344,538 61 Maquassi Hills 13,303 11 12,554 11 5,841 5 85,332 73 117,031 21 Dr. Kenneth Kaunda 2,911 97 86 3 - 0 - 0 2,997 1

Total 154,404 28 77,678 14 68,390 12 260,836 46 561,308 100

Total Municipality

0 - 30 Days 31 - 60 Days 61- 90 Days Over 90 Days Creditors Age Analysis as at 30 June 2016 (R'000)


Naledi 14,644 5 9,408 3 10,480 3 282,630 89 317,162 52 Mamusa 7,513 12 6,577 11 2,914 5 44,658 72 61,662 10 Greater Taung - - - - - - - - - 0 Molopo-Molopo 210 100 - - - - - - 210 0 Lekwa-Teemane 9,442 4 7,203 3 6,739 3 203,754 90 227,139 37 Dr. Ruth Mompati 25 2 22 2 66 6 986 90 1,099 0

Total 31,835 5 23,210 4 20,200 3 532,028 88 607,272 100



61


5.9

Ou

tsta

nd

ing

De

bt

To

Esk

om

Na

me

C

urr

en

t 0

-15

Da

ys

Ove

rdu

e D

eb

t

1

6-3

0 D

ays

Ove

rdu

e D

eb

t

To

tal

De

bt

Ma

dib

en

g

0 34

920

986

47

172

963

8

2 0

93

94

9

Ve

nte

rsd

orp

51

124

4 10

6100

41

149

391

4

5 3

06

61

5

Kg

etl

en

gri

vie

r 0

2833

592

42 0

11 7

02

44

84

5 2

93

Dit

so

bo

tla

12

427

070

0

159

917

502

17

2 3

44

57

2

Le

kw

a T

ee

ma

ne

0

4 28

8 55

9 54

334

906

5

86

23

46

6

Ma

mu

sa

3

247

316

45

415

414

4

8 6

62

73

0

Ma

qu

asi

Hil

ls

0 3

284

924

11 9

16 7

36

15

20

1 6

60

Na

led

i 10

995

383

0

177

357

270

18

8 3

52

65

3

Ra

mo

tsh

ere

Mo

ilo

a

4 48

8 07

5 0

10 9

28 0

87

15

41

6 1

62

Tsw

ain

g

0 2

943

822

43 2

60 1

54

46

20

3 9

76

Ma

tlo

sa

na

43 5

69 5

94

29 8

81 8

94

73

45

1 4

88

T

OT

AL D

EB

T

31

20

8 9

67

9

5 9

47

57

6

66

3 3

46

02

0

79

0 5

02

56

3

62


5.1

0 O

uts

tan

din

g D

eb

t T

o W

ate

r B

oa

rds

Ou

tsta

nd

ing

Bu

lk W

ate

r D

eb

ts O

we

d B

y M

un

icip

ali

tie

s

Mu

nic

ipa

lity

W

ate

r B

oa

rd

Cu

rre

nt

30

da

ys

60

da

ys

90

da

ys

12

0 d

ays+

T

ota

l C

om

me

nts

Maq

uass

i Hills

LM

Se

dibe

ng

Wat

er

4 4

62 1

71

4 44

1 10

3

4 78

8 20

4

4 42

1 82

8

58 2

96 2

94

76

40

9 6

01

A

n a

mo

un

t o

f R

4 7

68

0

20

wa

s p

aid

in

Ap

ril

20

16

.

Dits

obot

la L

M

Sedi

beng

W

ater

3

21 7

63

25

1 13

8

316

533

36

6 19

0

42 7

52 6

63

44

00

8 2

87

T

he M

unici

palit

y ha

s no

t m

ade

any

paym

ents

dur

ing

the

last

6 m

onth

s.

Mah

iken

g LM

Se

dibe

ng

Wat

er

6 28

3 84

1

6 1

99 5

90

5 94

7 70

1

5 83

4 58

8

165

440

657

1

89

70

6 3

76

Th

e M

unici

palit

y sig

ned

a pa

ymen

t agr

eem

ent i

n No

vem

ber2

015.

No

p

aym

en

t m

ad

e i

n A

pri

l ‘1

6

Ngak

a M

odiri

M

olem

a DM

Se

dibe

ng

Wat

er

1 21

2 53

0

1 10

3 46

8

1 29

3 88

8

1 49

9 12

3

40 6

90 3

29

45

79

9 3

39

Th

e M

unici

palit

y sig

ned

a pa

ymen

t agr

eem

ent i

n Ap

ril

2015

.Th

e l

ast

pa

ym

en

t m

ad

e w

as R

1.

26

9 3

96

in

D

ece

mb

er

‘15

M

adib

eng

LM

Rand

Wat

er

2 23

6 24

4

1 9

07 1

37

-

-

-

4 1

43

38

2

Mun

icipa

lity

has

not

com

mitt

ed to

pay

men

t dat

e

City

of

Tshw

ane

10 1

85 5

02

12 6

21

940

4

311

905

66 6

43

16

125

2

7 2

02

11

5

Mor

etel

e LM

Ci

ty o

f Ts

hwan

e 4

963

697

-

-

-

4 9

63

69

7

Bal

ance

as

at 3

1 M

arch

20

16

Rust

enbu

rg L

M

Mag

alie

s W

ater

1

985

433

5

8 73

2

-

-

-

2 0

44

16

5

Rand

Wat

er

23 0

41 5

94

1 6

07

-

-

-

23

04

3 2

01

M

unici

palit

y sh

ort p

aid

Wat

er R

esea

rch

Levy

for

Ra

nd W

ater

by

R 1

607

.00

63


Ou

tsta

nd

ing

Bu

lk W

ate

r D

eb

ts O

we

d B

y M

un

icip

ali

tie

s

Mu

nic

ipa

lity

W

ate

r B

oa

rd

Cu

rre

nt

30

da

ys

60

da

ys

90

da

ys

12

0 d

ays+

T

ota

l C

om

me

nts

Mos

es K

otan

e M

agal

ies

Wat

er

5 2

73 9

76

5 2

73

97

6

City

of M

atlo

sana

M

idva

al

Wat

er

24 1

51 5

97

22 2

34

564

14

259

49

3

8 73

0 55

7

636

358

7

0 0

12

56

9

Lek

wa-

Teem

ane

D

WA

-

-

-

-

-

134

907

775

D

iscu

ssio

ns b

etw

ee

n

WS

P a

nd

WS

A o

n t

he

de

bt

on

go

ing

.

Old

d

eb

t

TO

TA

L

8

4 1

18

3

48

4

8 8

19

2

79

3

0 9

17

7

23

2

0 9

18

9

31

3

07

83

2 4

26

6

27

51

4 4

83

64


5.11 Cash Flow

The way in which a Municipality generates and manages its cash flows determines the extent to which it can provide the required level of services and meet its commitments. The tables below reflect the sources and application of cash by Municipalities in the districts over the period under review.


According to the cash flow statements submitted, all Municipalities in the Bojanala Platinum district opened and closed their books with positive balances. Most receipts were received from service charges at R253 million followed by “Other” receipts at R103 million, whereas property rates accounted for R34 million. “Other” payment followed by employee related costs and repayment of borrowing constituted most payments at R275 million, R119 million and R34 million respectively.

The Statement of Financial Performance of Municipalities in the district shows a positive closing balance against operating expenditure, except for Moses Kotane and Bojanala which has a short fall of R24 million and R3 million respectively.

However, Cash flow management assessment indicates that Municipalities within the District have sufficient cash at hand/available to meet outstanding creditors when due, with exception of Madibeng, and Kgetlengrivier Municipalities, where cash available is way below outstanding creditors.

Municipality Moretele Madibeng Rustenburg Kgetlengrivier Moses Kotane BojanalaBilled Revenue 275,448 1,435,755 3,123,413 171,980 627,026 303,029 OPEX 230,783 1,414,792 2,965,992 125,044 651,535 306,347 Surplus/Deficit 44,665 20,963 157,421 46,936 (24,509) (3,318) Cash Flow Receipts 69,499 80,336 232,832 5,170 9,601 240 Payments 45,860 118,128 226,753 7,184 80,048 29,778 Opening Balance 10,970 89,022 703,730 3,731 184,071 30,815 Cash available 34,609 51,231 709,809 1,717 113,624 1,277 Creditors 9,344 223,029 276 73,940 5,932

Cash Flow Management Analysis

Moretele 10,970 106 4,356 230 - 64,806 8,598 4,655 - 14 - 32,593 34,609 Madibeng 89,022 12,079 52,066 493 - 15,698 29,162 5,790 3,676 - - 79,500 51,231 Rustenburg 703,730 15,953 191,172 - 5,677 20,030 49,641 2,963 18,208 24,170 29,222 102,548 709,809 Kgetleng Rivier 3,731 399 2,690 10 - 2,071 3,536 - 9 - - 3,640 1,717 Moses Kotane 184,071 5,198 2,510 1,246 - 647 14,723 6,444 3,140 3,504 4,384 47,852 113,624 Bojanala Platinum District 30,815 - - 240 - - 13,734 - 7,252 - - 8,792 1,277 Total 1,022,339 33,735 252,794 2,220 5,677 103,252 119,393 19,852 32,285 27,688 33,606 274,925 912,266 Source : IYM Summary Reports Received from the Municipalities

Bulk Purchases

Interest Earned Investments

Cash Flow Position as at 30 June 2016 (R'000) Receipts Payments

Closing Balance Other Property

Rates Service Charges

Government Grants

Other Receipts

Employee Related

Cost Opening Balance

ContractedServices

Interest Paid Repayment of

Borrowing Municipality

65



Municipalities in the district submitted cash flow statements reflecting positive opening and closing balances with exception to Ditsobotla, which closed with a negative balance. Most receipts were from “Other” revenue at R55 million, followed by property rates at R47 million whereas service charges accounted for R37 million of the total revenue. Employee related costs followed by “Other” expenditure, contracted services and bulk purchases (water and electricity) constituted payments for the year under review at R76 million, R72 million, R9 million and R4 million respectively.

The Statement of Financial Performance of Municipalities’ in the district reflects a surplus of Billed Revenue against Operating Expenditure except for Ditsobotla and Ramotshere Moiloa local Municipalities. However the following Municipalities do not have sufficient cash at hand/available to cover creditors namely: Tswaing, Ditsobotla, Ramotshere Moiloa and Ngaka Modiri. This is an indication that these Municipalities have serious financial constraints.

Municipality Ratlou Tswaing Mafikeng Ditsobotla Ramotshere Ngaka ModiriBilled Revenue 125,110 161,837 569,600 323,653 226,035 611,046 OPEX 105,606 143,303 406,704 456,313 232,878 483,293 Surplus/Deficit 19,504 18,534 162,897 (132,660) (6,843) 127,752 Cash Flow Receipts 31,944 6,416 24,429 23,602 11,940 40,257 Payments 35,214 9,111 33,430 30,860 12,373 39,650 Opening Balance 61,999 4,030 249,189 752 6,728 47,822 Cash available 58,729 1,335 240,188 (6,505) 6,295 48,429 Creditors 285 76,529 218,614 185,424 28,071 266,548


Ratlou 61,999 29,703 - 267 - 1,974 6,777 - 489 18 - 27,931 58,729 Tswaing 4,030 313 3,781 8 - 2,313 3,148 39 535 - - 5,388 1,335 Mafikeng 249,189 9,410 12,058 30 - 2,931 18,927 - 923 - - 13,580 240,188 Ditsobotla 752 2,581 17,513 - - 3,509 16,500 4,000 5,925 - - 4,435 (6,505) Ramotshere Moiloa 6,728 4,718 3,058 3 - 4,161 6,928 - 736 - - 4,710 6,295 Ngaka Modiri Molema District 47,822 - 107 241 - 39,909 23,638 - 1 - - 16,011 48,429 Total 370,520 46,725 36,517 282 - 54,797 75,917 4,039 8,609 18 - 72,055 348,471 Source : IYM Summary Reports Received from the Municipalities

Interest Paid ContractedServices

Repayment of

Borrowing Other

Receipts Employee Related

Cost Municipality

Opening Balance

Service Charges

Property Rates


Bulk Purchases

Government Grants

Cash Flow Position as at 30 June 2016 (R'000) Receipts Payments

Closing Balance Other

66


Dr Ruth Segomotsi Mompati

Municipalities submitted cash flow statement have opened and closed their books with positive bank balances with exception to Mamusa and Lekwa-Teemane, these Municipalities opened with a deficit amount, and Lekwa-Teemane closed and opened with deficit. Most receipts were received from “Other” at R121 million followed by Grants at R88 million. Service charges and property rates accounted for R17 million and R3 million respectively. “Other” expenditure, followed by bulk purchases (water and electricity) and Employee related costs constituted most payments at R140 million, R43 million and R40 million respectively.

Naledi, Lekwa-Teemane and Dr Ruth Segomotsi Municipalities reported a deficit on the operating activities which is in contrary to legislation requirement. It is evident with low cash flow balances that Naledi, Mamusa and Lekwa-Teemane Municipalities will not pay creditors when due. It should also be noted that the Municipalities affected are the ones which have entered in payment agreement with Eskom to settle arrears accounts which are long overdue. In addition the agreements have not been honored due to cash flow challenges as it reflects in the table above.

Municipality Naledi Mamusa Greater Taung Lekwa-Teemane Kagisano-Molopo Dr Ruth SegomotsiBilled Revenue 270,660 149,352 201,261 212,663 101,565 258,327 OPEX 349,484 127,825 144,676 217,013 94,519 282,781 Surplus/Deficit (78,824) 21,526 56,585 (4,350) 7,046 (24,454) Cash Flow Receipts 45,736 9,200 20,916 9,358 1,605 143,507 Payments 39,785 5,229 28,814 18,124 16,528 133,179 Opening Balance 13,232 (2,070) 16,913 (12,562) 38,056 1,375 Cash available 19,183 1,901 9,015 (21,328) 23,133 11,703 Creditors 317,162 61,662 - 227,139 210 1,099


Naledi 13,232 1,690 7,313 137 11,218 25,379 13,560 8,572 1,115 2,198 (19) 14,359 19,184 Mamusa (2,070) 536 3,004 - 4,000 1,660 3,952 - 778 10 - 489 1,901 Greater Taung 16,913 295 373 70 - 20,177 7,004 561 3,509 - - 17,740 9,015 Molopo/Kagisano 38,056 28 - 114 - 1,464 2,810 - 6,689 - - 7,029 23,133 Lekwa-Teemane (12,562) 751 6,653 3 1,439 512 4,392 500 1,051 - - 12,181 (21,328) Dr. Ruth Mompati District 1,375 - - 457 70,856 72,194 8,609 33,684 2,503 600 - 87,783 11,703 Total 54,945 3,300 17,344 644 87,513 121,386 40,327 43,317 15,645 2,808 (19) 139,581 43,609 Source : IYM Summary Reports Received from the Municipalities

ContractedServices

Employee Related

Cost Interest Paid

Repayment of

Borrowing

Cash Flow Position as at 30 June 2016 (R'000) Receipts

Bulk Purchases


Payments

Closing Balance Other Property

Rates Service Charges

Other Receipts

Government Grants

Municipality Opening Balance

67



Not doing well Potential to do well Lekwa Teemane LM Mahikeng LM Mamusa LM Maquassi Hills LM Dr RS Mompati DM

Ramotshere Moiloa LM Tswaing LM Ventersdorp LM Ditsobotla LM Taung LM Moretele LM Naledi LM

5.13 Revenue Enhancement Programme

The Department in collaboration with the Department of Finance, Enterprise and Economic Development initiated a revenue enhancement project for the current financial year to assist Municipalities to develop and implement revenue enhancement strategies. This was in response to the Provincial Administration request for all 23 Municipalities to develop and implement revenue enhancement plans and or strategies.

The Departments of dlg&hs& FEED developed a framework to guide Municipalities to develop their own revenue enhancement strategies. Furthermore, provide support to Municipalities through the Revenue and MPRA forum sessions to discuss revenue management initiatives, discuss challenges experienced by Municipalities and come up with alternative solutions to address such challenges.

Twelve (12) municipalities have revenue strategies.These municipalities include Dr Kenneth Kaunda district, Tlokwe, Moretele, Madibeng, Kgetleng Rivier, Lekwa Teemane, Greater Taung, Naledi, Tswaing, Ramotshere Moiloa, Mamusa and Mahikeng.

Continuous support was provided in relation to the following;

� Follow up on outstanding government debt � Municipal Property rates compliance by all local Municipalities � Management of Creditors i.e. Eskom account � Implementation of revenue enhancement plans

68


5.14 Municipal standard chart of accounts (mSCOA)

MSCOA stands for “standard chart of accounts” and provides a uniform and standardised financial transaction classification framework. Essentially this means that mSCOA prescribes the method (the how) and format (the look) that Municipalities and their entities should use to record and classify all expenditure (capital and operating), revenue, assets, liabilities, equity, policy outcomes and legislative reporting. mSCOA is a “proudly South African” project researched by National Treasury based on municipal practices, reporting outcomes, policy implementation and review, etc. The Municipal Regulations on a Standard Chart of Accounts (mSCOA) is applicable to all Municipalities and municipal entities with effect from 1 July 2017

Achievements

� Two Municipalities have gone live (Mafikeng and Mamusa) � All Municipalities have submitted their self assessment � Overall 266 officials have been trained on mscoa

Intervention by the Provincial Treasury

� Provincial treasury monitor and assist drafting project plans and implementation plans

� Assist on ICT and System due diligence exercises for system readiness � Engaging Municipalities to prepare their budget in all segments ( Support

Municipality in identification of Operational projects and capital project) � Assist Municipality in opening balance transfer process ( Municipality needs to

compare their current chart into mSCOA charts) Implementation Challenges

� Municipalities having capacity problem in terms of human capital to implement the project.

� Development of a project plan and implementation plan. � Lack of Commitment from management. � Development of Risk register

The Department will partner with the Provincial Treasury to support and monitor mscoa implementation process/project

69


5.15 Consolidated MFMA Section 131 Report

1. GLOSSARY

2. FINDINGS

The following Municipalities submitted the audit remedial plans to the Department. Municipalities have been assessed according to the above sections and individual detailed reports of each Municipality are attached. The Department has assessed whether Municipalities have adequately.

Addressed Adequately

The remedial plan will address the finding if implemented.

Partly Addressed

Finding not fully addressed, other imperative matters are not considered. Finding is sufficiently addressed however there are other issues that may be considered

Not Adequately Addressed

The finding is not addressed. There is a possibility of re-occurrence

Going concern

The Municipality will be able to continue with its operation for a foreseeable future

70


MU

NIC

IP

ALIT

Y

AU

DIT

O

UT

CO

ME

G

OIN

G C

ON

CE

RN

A

SS

ES

SM

EN

T O

UT

CO

ME

BO

JA

NA

LA

DIS

TR

IC

T

Boja

nala

Di

stric

t M

unici

palit

y Di

scla

imer

Go

ing

Conc

ern

�Le

ader

ship

did

not

exe

rcise

ade

quat

e ov

ersig

ht a

nd d

ecisi

ve a

ctio

ns

wer

e no

t ta

ken

to a

ddre

ss t

he r

isks

rela

ting

to t

he a

chie

vem

ent

of

com

plet

e an

d ac

cura

te fi

nanc

ial r

epor

ting

and

rela

ted

inte

rnal

con

trols.

�

Ther

e w

as a

dec

reas

e in

a n

umbe

r of q

ualif

icatio

ns p

arag

raph

s fro

m th

e pr

evio

us fi

nanc

ial y

ear.

�Th

e ac

tion

plan

s to

ad

dres

s pr

ior

year

au

dit

findi

ngs

wer

e no

t ad

equa

tely

im

plem

ente

d an

d m

onito

red

as

num

erou

s in

stan

ces

of

repe

at a

udit

findi

ngs

wer

e id

entif

ied

�

The

Unau

thor

ised,

Irre

gula

r, Fr

uitle

ss a

nd W

aste

ful e

xpen

ditu

re in

curr

ed

by M

unici

palit

y ha

s no

t bee

n in

vest

igat

ed in

term

s of

Sec

tion

32(2

)(a&

b)

of th

e M

unici

pal F

inan

ce M

anag

emen

t Act

. The

follo

win

g am

ount

s w

ere

disc

lose

d in

the

AFS:

Una

utho

rised

R80

539

355

rep

orte

d to

hav

e be

en

unde

rsta

ted

by R

19 9

92 6

10, (

2015

: R8

656

460)

�

Irre

gula

r R71

149

346

�

Frui

tless

and

was

tefu

l exp

endi

ture

R55

3 50

6 �

Alth

ough

Aud

it co

mm

ittee

was

fun

ctio

nal t

hrou

ghou

t th

e ye

ar,

inte

rnal

au

dit

and

the

audi

t co

mm

ittee

did

not

pro

vide

suf

ficie

nt a

ssur

ance

on

the

effe

ctiv

enes

s of

in

tern

al

cont

rols

as

a nu

mbe

r of

m

ater

ial

miss

tate

men

ts w

ere

iden

tifie

d du

ring

the

audi

t w

hich

cou

ld h

ave

been

pr

even

ted

had

prop

er o

vers

ight

bee

n im

plem

ente

d.

oTh

e M

unici

pali t

y is

rega

rded

as

a Go

ing

Conc

ern,

whi

ch m

eans

th

at th

e M

unici

palit

y w

ill be

abl

e to

con

tinue

with

its

oper

atio

n fo

r a

fore

seea

ble

futu

re.

Kg

etle

ngRi

vier

Loc

al

Mun

icipa

lity

Unqu

alifi

ed

Audi

t Opi

nion

No

t Reg

arde

d as

Go

ing

Conc

ern

�M

ater

ial

miss

tate

men

ts r

elat

ing

to d

isclo

sure

ite

ms

wer

e id

entif

ied

by

audi

tors

in

th

e su

bmitt

ed

finan

cial

stat

emen

ts

and

subs

eque

ntly

71


MU

NIC

IP

ALIT

Y

AU

DIT

O

UT

CO

ME

G

OIN

G C

ON

CE

RN

A

SS

ES

SM

EN

T O

UT

CO

ME

corr

ecte

d.

�Au

dit

opin

ion

impr

oved

an

d nu

mbe

r of

qu

alifi

catio

n pa

ragr

aphs

de

crea

sed.

�

The

Mun

icipa

lity

had

a fu

nctio

nal

aud i

t co

mm

ittee

and

int

erna

l au

dit,

but t

heir

inpu

ts w

ere

not f

ully

impl

emen

ted

by th

e M

unici

palit

y. I

nter

nal

audi

t ha

s no

t as

siste

d th

e M

unici

palit

y w

ith t

he r

isk a

sses

smen

t no

r co

mpi

latio

n f a

n ac

tion

plan

to a

ddre

ss p

rior y

ear a

udit

findi

ngs

�Le

ader

ship

did

not

ade

quat

ely

guid

e pe

rform

ance

act

iviti

es a

nd fa

iled

to

addr

ess

all

the

shor

tcom

ings

in

inte

rnal

con

trols

that

res

ulte

d in

the

fin

ding

s on

pe

rform

ance

in

form

atio

n,

serv

ice

deliv

ery

mat

ters

an

d co

mpl

ianc

e de

viat

ions

that

hav

e be

en re

porte

d.

�Un

auth

orise

d , ir

regu

lar

and

fruitl

ess

and

was

tefu

l exp

endi

ture

incu

rred

by

the

Mun

icipa

lity

was

not

inve

stig

ated

to

dete

rmin

e if

any

pers

on is

lia

ble

for

the

expe

nditu

re,

as r

equi

red

by s

ectio

n 32

(2)(

a)(ii

) of

the

M

FMA

o

The

follo

win

g am

ount

s w

ere

disc

lose

d in

the

AFS:

o

Unau

thor

ised

R72

895

736

(201

5: R

36 0

90 3

99)

oIr

regu

lar R

R11

753

961

(R8

609

360)

o

Frui

tless

and

was

tefu

l exp

endi

ture

R4

943

736

(R6

118

150)

M

oret

ele

Loca

l M

unici

pali t

y

Qua

lifie

d

Rega

rded

as

goin

g co

ncer

n �

Ther

e w

ere

2 in

vest

igat

ions

tha

t w

ere

cond

ucte

d on

irr

egul

ariti

es i

n su

pply

cha

in m

anag

emen

t un

it by

Haw

ks a

nd a

spe

cial

inve

stig

atio

ns

unit

durin

g au

dit.

�

The

audi

t co

mm

ittee

w

as

func

tiona

l, al

thou

gh

annu

al

finan

cial

stat

emen

ts a

nd p

erfo

rman

ce r

epor

t w

ere

not

revi

ewed

ade

quat

ely

by

the

audi

t com

mitt

ee a

nd th

e in

tern

al a

udito

r uni

t. �

Loss

es r

esul

ting

from

irre

gula

r ex

pend

iture

am

ount

ing

to R

25

937

675

wer

e w

ritte

n-of

f as

irre

cove

rabl

e w

ithou

t be

ing

certi

fied

by c

ounc

il as

irr

ecov

erab

le, i

n co

ntra

vent

ion

of s

ectio

n 32

(2)(

b) o

f the

MFM

A �

Lead

ersh

ip d

id n

ot a

dequ

atel

y ex

ercis

e th

eir

over

sight

res

pons

ibilit

y

72


MU

NIC

IPA

LIT

Y

AU

DIT

O

UT

CO

ME

G

OIN

G C

ON

CE

RN

A

SS

ES

SM

EN

T O

UT

CO

ME

rega

rdin

g fin

ancia

l an

d pe

rform

ance

rep

ortin

g, c

ompl

ianc

e w

ith k

ey

legi

slatio

n as

wel

l as

rela

ted

inte

rnal

con

trols.

�

Alth

ough

ther

e w

as a

dec

reas

e in

a n

umbe

r of q

ualif

icatio

ns p

arag

raph

s fro

m t

he p

revi

ous

finan

cial

year

, a

num

ber

of r

epea

t fin

ding

wer

e de

tect

ed.

�Un

auth

orize

d , ir

regu

lar,

fruitl

ess

and

was

tefu

l exp

endi

ture

incu

rred

by

the

Mun

icipa

lity

was

no

t in

vest

igat

ed,

in

acco

rdan

ce

with

th

e re

quire

men

ts o

f sec

tion

32(2

) of t

he M

FMA.

2.1

.

oTh

e fo

llow

ing

amou

nts

wer

e di

sclo

sed

in th

e AF

S:

oUn

auth

orize

d R2

66 1

72 6

70, r

epor

ted

to h

ave

been

ove

rsta

ted

by

R51

046

568.

o

Irre

gula

r R71

078

125

(201

5: R

36 6

05 0

30)

oFr

uitle

ss a

nd w

aste

ful e

xpen

ditu

re R

992

002

(R11

354

840

) �

The

Mun

icipa

lity

is re

gard

ed a

s a

Goin

g Co

ncer

n, w

hich

mea

ns th

at th

e M

unici

palit

y w

ill be

abl

e to

con

tinue

with

its

oper

atio

n fo

r a

fore

seea

ble

futu

re

Mad

iben

g Lo

cal

Mun

icipa

li ty

Disc

laim

er

Not

rega

rded

as

a

Goin

g Co

ncer

n �

Audi

t op

inio

n de

terio

rate

d an

d nu

mbe

r of

qu

alifi

catio

n pa

ragr

aphs

in

crea

sed.

�

Ther

e w

as a

n in

vest

igat

ion

by a

n in

depe

nden

t fir

m o

n fra

udul

ent

paym

ents

mad

e fro

m t

he m

unici

pal

bank

acc

ount

whi

ch w

as s

till

on-

goin

g at

the

repo

rting

dat

e.

�Th

e M

unici

palit

y ha

d a

func

tiona

l au

dit

com

mitt

ee a

nd i

nter

nal

audi

t, bu

t rec

omm

enda

tions

wer

e no

t ade

quat

ely

impl

emen

ted.

�

Lead

ersh

ip d

id n

ot e

xerc

ise a

dequ

ate

over

sight

res

pons

ibilit

y re

gard

ing

finan

cial a

nd p

erfo

rman

ce re

porti

ng.

�Un

auth

orise

d, ir

regu

lar

and

fruitl

ess

and

was

tefu

l exp

end i

ture

incu

rred

by t

he M

unici

palit

y w

as n

ot in

vest

igat

ed t

o de

term

ine

if an

y pe

rson

is

liabl

e fo

r th

e ex

pend

iture

, as

req

uire

d by

sec

tion

32(2

)(a)

(ii)

of t

he

MFM

A

73


MU

NIC

IP

ALIT

Y

AU

DIT

O

UT

CO

ME

G

OIN

G C

ON

CE

RN

A

SS

ES

SM

EN

T O

UT

CO

ME

oUn

auth

orize

d R7

62 4

62 9

54 (2

015:

R1

169

383

204)

o

Irre

gula

r R2

8 76

6 16

6 (2

015:

R15

400

014

) re

porte

d to

hav

e be

en u

nder

stat

ed b

y R7

62 4

62 9

54

oFr

uitle

ss

and

was

tefu

l ex

pend

iture

R7

330

977

(2

015:

R8

033

260)

�

Ther

e is

an e

xist

ence

of

a m

ater

ial u

ncer

tain

ty t

hat

may

cas

t do

ubt

on

the

Mun

icipa

lity’

s ab

ility

to o

pera

te a

s a

goin

g co

ncer

n

Mos

es K

otan

e Lo

cal

Mun

icipa

lity

Qua

lifie

d au

dit

opin

ion

Rega

rded

as

a go

ing

conc

ern

�M

ater

ial

adju

stm

ents

w

ere

effe

cted

to

th

e AF

S’

afte

r 31

Au

gust

su

bmiss

ion,

whi

ch l

ead

to t

he M

unici

palit

y re

ceiv

ing

a be

tter

audi

t op

inio

n th

an w

ith th

e in

itial

ly s

ubm

itted

AFS

. �

A le

tter

of in

tent

ion

to w

ithho

ld R

20 m

illion

of

MIG

was

issu

ed d

urin

g 20

16/1

7. T

he M

unici

palit

y do

es n

ot im

plem

ent M

IG p

roje

cts

as p

lann

ed,

this

coul

d be

an

indi

catio

n of

lac

k of

pla

nnin

g or

bad

pla

nnin

g by

m

anag

emen

t. �

Unau

thor

ised,

irre

gula

r an

d fru

itles

s an

d w

aste

ful e

xpen

ditu

re in

curr

ed

by t

he M

unici

palit

y w

as n

ot in

vest

igat

ed t

o de

term

ine

if an

y pe

rson

is

liabl

e fo

r th

e ex

pend

iture

, as

req

uire

d by

sec

tion

32(2

)(a)

(ii)

of t

he

MFM

A

�Ir

regu

lar R

349

781

910

(R29

6 87

2 95

8)

�Fr

uitle

ss a

nd w

aste

ful

expe

nditu

re o

f 2

016:

R72

254

(P

rior y

ears

: R8

893

998)

�

The

Mun

icipa

li ty

faile

d to

impl

emen

t iss

ues

raise

d by

inte

rnal

aud

it an

d au

dit c

omm

ittee

. Ru

sten

burg

Lo

cal

Mun

iciap

lity

Qua

lifie

d au

dit

opin

ion

Rega

rded

as

a go

ing

conc

ern

�Re

peat

aud

it fin

ding

wer

e id

entif

ied

durin

g au

dit.

�Un

auth

orise

d, i

rreg

ular

, fru

itles

s an

d w

aste

ful

expe

nditu

re i

ncur

red

by

the

Mun

icipa

lity

was

not

inve

stig

ated

to d

eter

min

e if

any

pers

on is

liab

le

for

the

expe

nditu

re,

as r

equi

red

by s

ectio

ns 3

2(2)

(a)

and

(b)

of t

he

MFM

A

oTh

e fo

llow

ing

amou

nts

wer

e di

sclo

sed

in th

e AF

S:

74


MU

NIC

IP

ALIT

Y

AU

DIT

O

UT

CO

ME

G

OIN

G C

ON

CE

RN

A

SS

ES

SM

EN

T O

UT

CO

ME

oUn

auth

orise

d R4

27 5

57 0

00 (2

015:

R56

4 02

3 00

0)

oFr

uitle

ss a

nd w

aste

ful e

xpen

ditu

re R

894

000

(R53

7 00

0)

oIr

regu

lar

expe

nditu

re:

it is

repo

rted

that

the

Mun

icipa

lity

did

not

quan

tify

the

full

exte

nt o

f the

exp

endi

ture

�

The

effe

ctiv

enes

s of

the

audi

t com

mitt

ee a

nd in

tern

al a

udit’

s ro

le a

s an

as

sura

nce

prov

ider

was

com

prom

ised

by m

anag

emen

t’s i

nabi

lity

to

adeq

uate

ly

addr

ess

and

reac

t to

in

tern

al

audi

t’s

findi

ngs

and

reco

mm

enda

tions

. �

Man

agem

ent

did

not

impl

emen

t ef

fect

ive

cont

rols

to e

nsur

e th

at a

ll in

form

atio

n in

the

finan

cial s

tate

men

ts a

nd th

e re

port

on p

rede

term

ined

ob

ject

ives

wer

e re

liabl

e be

fore

sub

miss

ion

for

audi

t. Th

e slo

w r

espo

nse

by le

ader

ship

, man

agem

ent a

nd o

vers

ight

to a

udit

findi

ngs

iden

tifie

d in

pr

ior p

erio

ds h

as le

d to

a re

gres

sion

in k

ey fi

nanc

ial r

epor

tabl

e ar

eas.

�

Ther

e w

as l

ack

of c

ontin

uity

in

key

man

agem

ent

posit

ions

due

to

susp

ensio

ns a

nd re

signa

tions

. �

Coun

cil

did

not

alw

ays

appr

ove

the

term

s of

re

fere

nce

of

each

in

vest

igat

ion

as r

equi

red

by r

egul

atio

n 6(

1) o

f the

Mun

icipa

l reg

ulat

ions

on

fina

ncia

l misc

ondu

ct p

roce

dure

s an

d cr

imin

al p

roce

edin

gs.

�Al

lega

tions

of

fin

ancia

l m

iscon

duct

la

id

agai

nst

offic

ials

of

the

Mun

icipa

lity

wer

e no

t in

vest

igat

ed a

s re

quire

d by

sec

tion

171(

4)(a

) of

th

e M

FMA.

�

DR

RU

TH

SE

GO

MO

TS

I M

OM

PA

TI D

IS

TR

IC

T

Dr R

uth

Sego

mot

si M

ompa

ti Di

stric

t M

unici

pali t

y

Unqu

alifi

ed

Audi

t rep

ort

Rega

rded

as

Goin

g Co

ncer

n o

The

audi

t co

mm

ittee

di

d no

t ad

equa

tely

re

view

ad

equa

cy,

relia

bilit

y an

d ac

cura

cy

of

the

finan

cial

stat

emen

t an

d pe

rform

ance

repo

rting

bef

ore

subm

issio

n fo

r aud

it.

oTh

e In

tern

al a

udit

Depa

rtmen

t an

d au

dit

com

mitt

ee w

as f

ully

fu

nctio

nal

durin

g th

e ye

ar

unde

r re

view

; ho

wev

er

the

reco

mm

enda

tions

mad

e w

ere

not i

mpl

emen

ted.

o

The

acco

untin

g of

ficer

faile

d to

info

rm t

he M

ayor

, MEC

for

Loca

l

75


MU

NIC

IP

ALIT

Y

AU

DIT

O

UT

CO

ME

G

OIN

G C

ON

CE

RN

A

SS

ES

SM

EN

T O

UT

CO

ME

Gove

rnm

ent

in t

he p

rovi

nce,

Aud

it Ge

nera

l an

y Un

auth

orise

d,

Irre

gula

r, Fr

uitle

ss

and

Was

tefu

l ex

pend

iture

in

curr

ed

by

Mun

icipa

lity

in t

erm

s of

Sec

tion

32(4

) (a

),(b)

and

(c)

of

the

Mun

icipa

l Fin

ance

Man

agem

ent A

ct.

oTh

e M

unici

pali t

y ha

d no

t de

alt

with

Una

utho

rised

, Ir

regu

lar,

Frui

tless

and

Was

tefu

l ex

pend

iture

in

term

s of

Sec

tion

32(2

) (a

&b) o

f the

Mun

icipa

l Fin

ance

Man

agem

ent A

ct

oUn

auth

orize

d R4

3 02

8 36

2 o

Irre

gula

r exp

endi

ture

of R

200

092

166

oFr

uitle

ss a

nd w

aste

ful

expe

nditu

re R

33 7

61 p

rior

year

s of

R69

36

7 Ka

gisa

no M

olop

o Lo

cal

Mun

icipa

li ty

Unqu

alifi

ed

Audi

t opi

nion

Re

gard

ed a

s a

Goin

g co

ncer

n o

The

Mun

icipa

lity

had

not

deal

t w

ith t

he U

naut

horis

ed,

Irre

gula

r, Fr

uitle

ss a

nd W

aste

ful

expe

nditu

re i

ncur

red

by M

unici

palit

y in

te

rms

of S

ectio

n 32

(a)

and

(b)

of M

unici

pal F

inan

ce M

anag

emen

t Ac

t. �Th

e fo

llow

ing

amou

nts

wer

e di

sclo

sed

in th

e AF

S:

�Un

auth

orise

d R4

0 05

7 65

6 (p

rior y

ears

: R6

1 09

3 69

3)

�Ir

regu

lar

expe

nditu

re o

f R6

1 41

3 88

9 (p

rior

year

s: R

180

750

400)

�

Frui

tless

and

was

tefu

l R82

968

(prio

r yea

rs: R

1 79

5 16

1)

oTh

e Ac

ting

Offic

e fa

iled

to i

nfor

m t

he M

ayor

, M

EC f

or L

ocal

Go

vern

men

t in

the

pro

vinc

e, A

udit

Gene

ral i

n w

ritin

g in

ter

ms

of

Sect

ion3

2 (4

) of

MFM

A, o

f (a

) an

y un

auth

orise

d, i

rreg

ular

or

fruitl

ess

and

was

tefu

l ex

pend

iture

inc

urre

d by

the

Mun

icipa

lity;

(b

) w

heth

er a

ny p

erso

n is

liabl

e or

und

er in

vest

igat

ion

for

such

UI

F&W

; (c

) an

y st

eps

take

n to

re

cove

r or

re

ctify

su

ch

expe

nditu

re a

nd (d

) pre

vent

any

recu

rren

ce o

f suc

h ex

pend

iture

. o

The

audi

t co

mm

ittee

and

int

erna

l au

dit

fulfi

lled

thei

r fu

nctio

ns,

alth

ough

man

agem

ent d

id n

ot im

plem

ent t

heir

reco

mm

enda

tions

.

76


MU

NIC

IP

ALIT

Y

AU

DIT

O

UT

CO

ME

G

OIN

G C

ON

CE

RN

A

SS

ES

SM

EN

T O

UT

CO

ME

Lekw

a te

eman

e Lo

cal

Mun

icipa

lity

Disc

laim

er A

udit

Opin

ion

Not

rega

rded

as

a

goin

g co

ncer

n o

The

Mun

icipa

lity

has

regr

esse

d fro

m q

ualif

ied

to d

iscla

imer

aud

it ou

tcom

e an

d th

e nu

mbe

r of p

arag

raph

s ha

s in

crea

sed.

o

The

Mun

icipa

lity

is ov

erre

lianc

e to

the

con

sulta

nts

as c

ritica

l po

sitio

n of

Chi

ef F

inan

cial O

ffice

r ha

s no

t fille

d fo

r th

e pa

st th

ree

finan

cial y

ears

. o

The

Mun

icipa

lity

had

not

deal

t w

ith U

naut

horis

ed,

Irre

gula

r, Fr

uitle

ss a

nd W

aste

ful i

ncur

red

in te

rms

of S

ectio

n 32

(2) (

a&b)

of

the

Mun

icipa

l Fin

ance

Man

agem

ent A

ct.

�Th

e fo

llow

ing

amou

nts

wer

e di

sclo

sed

in th

e AF

S’

�Un

auth

orise

d: R

60 9

92 6

19 fr

om p

rior y

ears

�

Irre

gula

r : R

1 56

7 86

8, (p

rior y

ears

: R5

9 79

4 41

3)

�Fr

uitle

ss

and

was

tefu

l ex

pend

iture

R5

74

8 87

7 (p

rior

year

s: R

19 5

91 3

86)

oTh

e Ac

coun

ting

Offic

er h

as f

aile

d to

info

rm t

he M

ayor

, M

EC f

or

Loca

l Go

vern

men

t in

th

e pr

ovin

ce

and

Audi

tor

Gene

ral

any

Unau

thor

ised,

Ir

regu

lar,

Frui

tless

an

d W

aste

ful

expe

nditu

re

incu

rred

by

Mun

icipa

lity

in t

erm

s of

Sec

tion

32(4

)(a,

b &c

) of

M

unici

pal F

inan

ce M

anag

emen

t Act

. M

amus

a Lo

cal

Mun

icipa

li ty

Disc

laim

er A

udit

Opin

ion

Not

rega

rded

as

a

goin

g co

ncer

n �

The

lead

ersh

ip d

id n

ot s

uffic

ient

ly e

xerc

ise t

heir

over

sight

res

pons

ibilit

ies

rega

rdin

g th

e fin

ancia

l an

d pe

rform

ance

re

porti

ng,

com

plia

nce

with

le

gisla

tion

as w

ell a

s th

e re

late

d in

tern

al c

ontro

ls.

�Th

e Un

auth

orise

d, Ir

regu

lar,

Frui

tless

and

Was

tefu

l exp

endi

ture

incu

rred

by

Mun

icipa

lity

has

not b

een

inve

stig

ated

in te

rms

of S

ectio

n 32

(2)(

a&b)

of t

he

Mun

icipa

l Fin

ance

Man

agem

ent A

ct.

�Th

e fo

llow

ing

amou

nts

wer

e di

sclo

sed

in th

e AF

S’

�Un

auth

orise

d: R

26 3

85 5

33 (2

015:

R30

535

557

) �

Irre

gula

r : R

24 5

64 4

24 (2

015:

R9

647

071)

�

The

Acco

untin

g Of

fice

has

faile

d to

inf

orm

the

May

or,

MEC

for

Loc

al

77


MU

NIC

IPA

LIT

Y

AU

DIT

O

UT

CO

ME

G

OIN

G C

ON

CE

RN

A

SS

ES

SM

EN

T O

UT

CO

ME

Gove

rnm

ent

in t

he p

rovin

ce a

nd A

udito

r Ge

nera

l of

any

Una

utho

rised

, Ir

regu

lar,

Frui

tless

and

Was

tefu

l ex

pend

iture

inc

urre

d by

Mun

icipa

lity

in

term

s of

Sec

tion

32(4

)(a,

b an

d c)

of

the

Mun

icipa

l Fin

ance

Man

agem

ent

Act.

�M

anag

emen

t ha

d lim

ited

inte

ract

ion

with

aud

it co

mm

ittee

, as

a r

esul

t re

com

men

datio

ns o

f the

com

mitt

ee w

ere

not i

mpl

emen

ted

�

The

lead

ersh

ip h

ad f

aile

d to

fill

criti

cal

posit

ions

suc

h as

Chi

ef F

inan

cial

Offic

er, M

unici

pal M

anag

er a

nd o

ther

sen

ior m

anag

ers.

Na

ledi

Loc

al M

unici

palit

y

Unqu

alifi

ed

Audi

t Opi

nion

No

t re

gard

ed

as

a go

ing

conc

ern

�Th

e le

ader

ship

did

not

suf

ficie

ntly

exe

rcise

the

ir ov

ersig

ht r

espo

nsib

ilitie

s re

gard

ing

the

finan

cial

and

perfo

rman

ce r

epor

ting

and

com

plia

nce

with

le

gisla

tion

and

the

rela

ted

inte

rnal

con

trols.

Con

sequ

ence

man

agem

ent

mea

sure

s w

ere

not f

ully

impl

emen

ted

�Th

e Un

auth

orise

d, Ir

regu

lar,

Frui

tless

and

Was

tefu

l exp

endi

ture

incu

rred

by

Mun

icipa

lity

has

not b

een

inve

stig

ated

in te

rms

of S

ectio

n 32

(2)(

a&b)

of t

he

Mun

icipa

l Fin

ance

Man

agem

ent

Act.

The

follo

win

g am

ount

s w

ere

disc

lose

d in

the

AFS:

o

Unau

thor

ised

R60

158

320

oIr

regu

lar R

3 16

3 05

7 (2

015:

R15

3 73

5 25

3)

oFr

uitle

ss a

nd w

aste

ful

expe

nditu

re R

29 5

15 3

44 (

prio

r ye

ars:

R32

31

6 98

0)

oIr

regu

lar,

fruitl

ess

and

was

tefu

l ex

pend

iture

in

curre

d by

th

e M

unici

palit

y w

ere

not i

nves

tigat

ed to

det

erm

ine

if an

y pe

rson

is li

able

fo

r the

exp

endi

ture

as

pres

crib

ed b

y se

c 32

of M

FMA.

�

The

audi

t co

mm

ittee

and

inte

rnal

aud

it fu

lfille

d th

eir

func

tions

, ho

wev

er,

man

agem

ent

did

not

adeq

uate

ly re

spon

d to

the

con

cern

s ra

ised

by t

he

audi

t com

mitt

ee n

or d

id th

ey im

plem

ent t

heir

reco

mm

enda

tions

. �

The

follo

win

g in

vest

igat

ions

wer

e co

nduc

ted

durin

g th

e fin

ancia

l yea

r:

�An

ind

epen

dent

con

sulti

ng f

irm p

erfo

rmed

an

inve

stig

atio

n du

ring

the

2015

/16

finan

cial y

ear

at th

e re

ques

t of t

he M

unici

palit

y. T

he in

vest

igat

ion

78


MU

NIC

IPA

LIT

Y

AU

DIT

O

UT

CO

ME

G

OIN

G C

ON

CE

RN

A

SS

ES

SM

EN

T O

UT

CO

ME

was

on

alle

gatio

n of

pos

sible

misa

ppro

pria

tion

of th

e M

unici

palit

y’s a

sset

s.

�Ha

wks

inve

stig

ativ

e un

it of

the

SAPS

was

inve

stig

atin

g Na

ledi

traf

fic o

ffice

rs

accu

sed

of ta

king

brib

es.

�Th

ere

wer

e m

ultip

le a

llega

tions

whi

ch w

ere

not i

nves

tigat

ed.

Grea

ter

Taun

g Lo

cal

Mun

icipa

li ty

Qual

ified

Au

dit

Opin

ion

Rega

rded

as

a Go

ing

Conc

ern

oTh

e le

ader

ship

di

d no

t su

fficie

ntly

exer

cise

thei

r ov

ersig

ht

resp

onsib

ilitie

s re

gard

ing

the

finan

cial r

epor

ting,

as

a re

sult,

aud

it fin

ding

s of

the

prev

ious

yea

rs w

ere

repe

ated

. o

The

Unau

thor

ised,

Irre

gula

r, Fr

uitle

ss a

nd W

aste

ful e

xpen

ditu

re

incu

rred

by M

unici

palit

y ha

s no

t be

en i

nves

tigat

ed i

n te

rms

of

Sect

ion

32(2

)(a&

b) o

f th

e M

unici

pal

Fina

nce

Man

agem

ent

Act.

The

follo

win

g am

ount

s w

ere

disc

lose

d in

the

AFS:

�

Unau

thor

ised

R26

554

437

(201

5: R

28 9

21 9

44)

�Ir

regu

lar t

here

was

a re

porte

d un

ders

tate

men

t of

�R9

708

941

(201

5: R

8 54

0 62

0).

�Fr

uitle

ss a

nd w

aste

ful e

xpen

ditu

re R

152

706

(prio

r ye

ars:

R9

86 4

73)

oTh

e au

dit

com

mitt

ee a

nd i

nter

nal

audi

t fu

lfille

d th

eir

func

tions

, ho

wev

er,

man

agem

ent

did

not

prov

ide

for

risks

fac

ed b

y th

e M

unici

palit

y.

�D

R K

EN

NE

TH

KA

UN

DA

DIS

TR

ICT

Dr

Kenn

eth

Kaun

da

Dist

rict M

unici

palit

y Qu

alifi

ed

Audi

t Op

inio

n No

t Re

gard

ed

as

a Go

ing

Conc

ern

oLe

ader

ship

did

not

ens

ure

that

all

polic

ies

and

proc

edur

es w

ere

revie

wed

. M

ater

ial m

issta

tem

ents

wer

e id

entif

ied

due

to la

ck o

f su

fficie

nt re

view

of A

FS p

rior t

o th

e au

dit.

oTh

e Un

auth

orise

d, I

rregu

lar,

Frui

tless

and

Was

tefu

l exp

endi

ture

in

curre

d by

Mun

icipa

lity

has

not

been

inv

estig

ated

in

term

s of

Se

ctio

n 32

(2)(

a&b)

of

the

Mun

icipa

l Fi

nanc

e M

anag

emen

t Ac

t. Th

e fo

llow

ing

amou

nts

wer

e di

sclo

sed

in th

e AF

S:

�Un

auth

orise

d R3

7 84

8 62

0

�Ir

regu

lar :

R25

024

770

was

iden

tifie

d du

ring

audi

t,

79


MU

NIC

IP

ALIT

Y

AU

DIT

O

UT

CO

ME

G

OIN

G C

ON

CE

RN

A

SS

ES

SM

EN

T O

UT

CO

ME

�Fr

uitle

ss a

nd w

aste

ful

expe

nditu

re R

10 6

07 7

37 (

prio

r ye

ars

: R10

357

980

) o

The

audi

t co

mm

ittee

and

int

erna

l au

dit

fulfi

lled

thei

r fu

nctio

ns,

how

ever

, m

anag

emen

t di

d no

t pr

ovid

e fo

r ris

ks f

aced

by

the

Mun

icipa

lity.

o

Durin

g th

e au

dit

an i

nves

tigat

ion

was

bei

ng c

ondu

cted

at

the

mun

icipa

l ent

ity,

as a

res

ult

of a

n al

lega

tion

rela

ting

to f

inan

cial

misc

ondu

ct,

fraud

or

im

prop

er

cond

uct

in

supp

ly

chai

n m

anag

emen

t pro

cedu

res

M

aqua

ssi

Hills

Lo

cal

Mun

icipa

li ty

Qual

ified

Au

dit

Opin

ion

Not

Rega

rded

as

a

Goin

g Co

ncer

n �

Lead

ersh

ip d

id n

ot p

rom

ote

the

esta

blish

men

t of

a c

ultu

re o

f ho

nest

ly,

ethi

cal

busin

ess

prac

tices

an

d go

od

gove

rnan

ce.

Lead

ersh

ip

faile

d to

ap

poin

t su

fficie

nt a

ppro

pria

tely

ski

lled

staf

f in

key

pos

ition

s w

ithin

the

fin

ance

uni

t. �

The

Unau

thor

ised,

Irre

gula

r, Fr

uitle

ss a

nd W

aste

ful e

xpen

ditu

re in

curr

ed b

y M

unici

palit

y ha

s no

t bee

n in

vest

igat

ed in

term

s of

Sec

tion

32(2

)(a&

b) o

f the

M

unici

pal F

inan

ce M

anag

emen

t Ac

t. Th

e fo

llow

ing

amou

nts

wer

e di

sclo

sed

in th

e AF

S:

oUn

auth

orise

d R4

0 03

4 60

2 (p

rior y

ears

: R36

8 40

3 19

3)

oIr

regu

lar R

170

838

050

o

Frui

tless

an

d w

aste

ful

expe

nditu

re

R2

351

520

(prio

r ye

ars:

R6

79 0

32).

�Th

e in

tern

al a

udit

and

audi

t co

mm

ittee

was

not

fun

ctio

nal

durin

g th

e fin

ancia

l yea

r und

er re

view

. �

The

follo

win

g in

vest

igat

ions

wer

e co

nduc

ted

durin

g th

e fin

ancia

l yea

r:

oAn

inve

stig

atio

n by

Pre

siden

tial P

rocla

mat

ion

Spec

ial I

nves

tigat

ions

Un

it (S

IU) o

n al

lega

tions

of s

uppl

y ch

ain

man

agem

ent i

rreg

ular

ities

. o

An in

vest

igat

ion

by th

e Ha

wks

, ini

tiate

d by

the

acco

untin

g of

ficer

on

alle

gatio

ns o

f sup

ply

chai

n m

anag

emen

t irr

egul

ariti

es

80


MU

NIC

IPA

LIT

Y

AU

DIT

O

UT

CO

ME

G

OIN

G C

ON

CE

RN

A

SS

ES

SM

EN

T O

UT

CO

ME

oAn

inve

stig

atio

n by

the

SAP

S, in

itiat

ed b

y th

e ac

coun

ting

offic

er o

n al

lega

tions

of s

uppl

y ch

ain

man

agem

ent i

rregu

larit

ies

Mat

losa

na L

ocal

M

unici

palit

y Qu

alifi

ed A

udit

Opin

ion

Not R

egar

ded

as a

Go

ing

Conc

ern

�Th

e le

ader

ship

has

rep

orte

dly

not

been

abl

e to

enf

orce

a c

ultu

re o

f ho

nest

y, e

thica

l bus

ines

s pr

actic

es a

nd g

ood

gove

rnan

ce.

�Th

e Un

auth

orise

d, Ir

regu

lar,

Frui

tless

and

Was

tefu

l exp

endi

ture

incu

rred

by

Mun

icipa

lity

has

not b

een

inve

stig

ated

in te

rms

of S

ectio

n 32

(2)(

a&b)

of t

he

Mun

icipa

l Fin

ance

Man

agem

ent

Act.

The

follo

win

g am

ount

s w

ere

disc

lose

d in

the

AFS:

o

Unau

thor

ised

R73

697

807

(prio

r yea

rs: R

1 42

4 53

4 17

5)

oIr

regu

lar

R2

081

326

943,

re

porte

d to

be

un

ders

tate

d by

R4

0744

985.

o

Frui

tless

and

was

tefu

l ex

pend

iture

R23

264

026

(pr

ior

year

s: R

91

222

464)

�

The

audi

t com

mitt

ee w

as fu

nctio

nal d

urin

g th

e fin

ancia

l yea

r und

er re

view

. M

anag

emen

t di

d no

t fu

lly i

mpl

emen

t re

com

men

datio

ns o

f in

tern

al a

udit

unit

as w

ell a

s th

ose

of th

e au

dit c

omm

ittee

�

Suffi

cient

app

ropr

iate

aud

it ev

iden

ce c

ould

not

be

obt

aine

d th

at j

ob

desc

riptio

ns w

ere

deve

lope

d fo

r all

post

s in

whi

ch a

ppoi

ntm

ents

wer

e m

ade

in th

e ye

ar u

nder

revie

w.

�An

in

vest

igat

ion

was

co

nduc

ted

by

an

inde

pend

ent

cons

ultin

g fir

m,

appo

inte

d by

the

Pre

mie

r of

the

pro

vince

, ba

sed

on a

n al

lega

tion

of

poss

ible

fina

ncia

l mism

anag

emen

t at t

he M

unici

palit

y.

Tlok

we

Loca

l M

unici

palit

y Qu

alifi

ed A

udit

Opin

ion

Rega

rded

as

a go

ing

conc

ern.

Ve

nter

sdor

p Lo

cal

Mun

icipa

lity

and

Tlok

we

City

Cou

ncil

mer

ged

into

a c

ombi

ned

new

�M

ater

ial m

issta

tem

ents

wer

e id

entif

ied

on A

FS

�Th

e le

ader

ship

has

rep

orte

dly

not

been

abl

e to

enf

orce

a c

ultu

re o

f ho

nest

y, e

thica

l bus

ines

s pr

actic

es a

nd g

ood

gove

rnan

ce. H

igh

relia

nce

on

cons

ulta

nts

to p

repa

re fi

nanc

ial i

nfor

mat

ion.

HR

man

agem

ent w

as d

eem

ed

inef

fect

ive to

ens

ure

that

ade

quat

e an

d su

fficie

ntly

skille

d re

sour

ces

are

in

plac

e an

d th

at p

erfo

rman

ce is

mon

itore

d �

The

Unau

thor

ised,

Irre

gula

r, Fr

uitle

ss a

nd W

aste

ful e

xpen

ditu

re in

curre

d by

81


MU

NIC

IPA

LIT

Y

AU

DIT

O

UT

CO

ME

G

OIN

G C

ON

CE

RN

A

SS

ES

SM

EN

T O

UT

CO

ME

Mun

icipa

lity,

NW

405,

fro

m th

e 3r

d of

Au

gust

201

6.

Mun

icipa

lity

has

not b

een

inve

stig

ated

in te

rms

of S

ectio

n 32

(2)(

a&b)

of t

he

Mun

icipa

l Fin

ance

Man

agem

ent A

ct. T

he fo

llow

ing

amou

nts

wer

e di

sclo

sed

in th

e AF

S:

oUn

auth

orise

d R8

1 93

8 51

5 (p

rior y

ears

: R24

2 85

3 71

2)

oFr

uitle

ss a

nd w

aste

ful

expe

nditu

re R

7 52

5 56

7(pr

ior

year

s: R

1 68

6 28

8 o

Irreg

ular

exp

endi

ture

R52

0 41

5 47

2 �

No r

isk s

trate

gy in

pla

ce.

The

audi

t co

mm

ittee

did

not

pro

vide

effe

ctive

ov

ersig

ht a

nd in

tern

al a

udit

unit

was

not

effe

ctive

. Ve

nter

sdor

p Lo

cal

Mun

icipa

lity

Disc

laim

er A

udit

Opin

ion

Not r

egar

ded

as a

go

ing

conc

ern.

Al

thou

gh th

e M

unici

palit

y is

not

rega

rded

as

goin

g co

ncer

n, V

ente

rsdo

rp

Loca

l Mun

icipa

lity

and

Tlok

we

City

Cou

ncil

mer

ged

into

a c

ombi

ned

new

M

unici

palit

y fro

m th

e 3r

d of

Aug

ust 2

016.

�Th

e le

ader

ship

did

not

suf

ficie

ntly

exer

cise

thei

r ov

ersig

ht r

espo

nsib

ilitie

s re

gard

ing

the

finan

cial

and

perfo

rman

ce r

epor

ting

and

com

plia

nce

with

le

gisla

tion

and

the

rela

ted

inte

rnal

con

trols.

�

The

Unau

thor

ised,

Irre

gula

r, Fr

uitle

ss a

nd W

aste

ful e

xpen

ditu

re in

curre

d by

M

unici

palit

y ha

s no

t bee

n in

vest

igat

ed in

term

s of

Sec

tion

32(2

)(a&

b) o

f the

M

unici

pal F

inan

ce M

anag

emen

t Act

. The

follo

win

g am

ount

s w

ere

disc

lose

d in

the

AFS:

o

Unau

thor

ised

R197

715

086

(201

5: R

135

988

684)

o

Irreg

ular

R13

7 47

1323

(201

5: R

117

980

779)

o

Frui

tless

and

was

tefu

l exp

endi

ture

R7

711

848

(prio

r yea

rs: R

41 8

21

494)

�

The

audi

t co

mm

ittee

did

not

ens

ure

that

int

erna

l au

dit

Depa

rtmen

t is

func

tiona

l and

they

did

not

mon

itor

the

impl

emen

tatio

n of

risk

ass

essm

ent

prac

tices

, no

r di

d th

ey

have

a

posit

ive

impa

ct

on

the

mun

icipa

l en

viron

men

t. �

The

follo

win

g in

vest

igat

ions

wer

e co

nduc

ted

durin

g th

e fin

ancia

l yea

r: �

The

Publ

ic Pr

otec

tor

inve

stig

ated

an

alle

ged

mal

adm

inist

ratio

n in

the

aw

ardi

ng o

f te

nder

s an

d pa

ymen

ts b

y th

e M

unici

palit

y. S

tatu

s of

the

in

vest

igat

ion

at th

e re

porti

ng d

ate

coul

d no

t be

conf

irmed

. �

The

Publ

ic Pr

otec

tor

cond

ucte

d an

in

vest

igat

ion

on

alle

ged

82


MU

NIC

IPA

LIT

Y

AU

DIT

O

UT

CO

ME

G

OIN

G C

ON

CE

RN

A

SS

ES

SM

EN

T O

UT

CO

ME

mal

adm

inist

ratio

n an

d im

prop

riety

in

the

appo

intm

ent

of t

he D

irect

or:

Tech

nica

l Ser

vices

. The

app

oint

men

t was

mad

e by

cou

ncil

desp

ite th

e M

EC

not i

ssui

ng a

lette

r of c

oncu

rrenc

e in

this

rega

rd. T

he in

vest

igat

ion

was

stil

l on

goin

g at

the

repo

rting

dat

e.

�Th

e So

uth

Afric

an

Polic

e Se

rvice

s in

vest

igat

ed

the

alle

ged

fraud

by

ca

shie

rs.

The

mat

ter

has

been

ref

erre

d to

the

Pub

lic P

rose

cuto

r fo

r a

decis

ion.

The

inve

stig

atio

n w

as s

till i

n pr

ogre

ss a

nd n

ot c

onclu

ded

at t

he

repo

rting

dat

e.

�

NG

AK

A M

OD

IRI

MO

LE

MA

DIS

TR

ICT

Ngak

a M

odiri

M

olem

a Di

stric

t Mun

icipa

lity

Disc

laim

er A

udit

Opin

ion

Not

Rega

rded

as

a

Goin

g Co

ncer

n �

Mat

eria

l m

issta

tem

ents

rel

atin

g to

disc

losu

re i

tem

s w

ere

iden

tifie

d by

au

dito

rs in

the

subm

itted

fina

ncia

l sta

tem

ents

and

sub

sequ

ently

cor

rect

ed.

Supp

ortin

g do

cum

enta

tion

subm

itted

dur

ing

the

audi

t di

d no

t ad

equa

tely

supp

ort d

isclo

sure

s �

The

num

ber o

f qua

lifica

tion

para

grap

hs d

ecre

ased

. �

The

audi

t co

mm

ittee

and

int

erna

l au

dit

was

fun

ctio

nal

c om

plie

d w

ith

rele

vant

le

gisla

tion,

bu

t th

eir

inpu

ts

wer

e no

t im

plem

ente

d by

th

e M

unici

palit

y.

�Th

e di

stric

t M

unici

pali t

y di

d no

t fu

lfil

all

the

assig

ned

pow

ers

and

co-

oper

ative

fun

ctio

ns t

o su

ppor

t its

loca

l Mun

icipa

litie

s in

ter

ms

of s

ectio

ns

152,

156

and

229

of t

he C

onst

itutio

n of

the

Repu

blic

of S

outh

Afri

ca, 1

996

(Act

No.

108

of

1996

) an

d se

ctio

ns 8

3(1)

and

(2)

and

88(

1) o

f th

e M

unici

pal S

truct

ures

Act

, 19

98 (

Act

No.

117

of 1

998)

tow

ards

a h

ealth

y,

safe

and

sus

tain

able

env

ironm

ent.

�Un

auth

orise

d, ir

regu

l ar

and

fruitl

ess

and

was

tefu

l exp

endi

ture

incu

rred

by

the

Mun

icipa

lity

was

not

inve

stig

ated

to d

eter

min

e if

any

pers

on is

liab

le fo

r th

e ex

pend

iture

, as

req

uire

d by

sec

tion

32(2

)(a)

(ii)

of t

he M

FMA.

The

fo

llow

ing

amou

nts

wer

e di

sclo

sed

in th

e AF

S:

oUn

auth

orise

d R7

25 6

35 6

14 (2

015:

R47

3 58

2 95

8))

83


MU

NIC

IPA

LIT

Y

AU

DIT

O

UT

CO

ME

G

OIN

G C

ON

CE

RN

A

SS

ES

SM

EN

T O

UT

CO

ME

oIr

regu

lar

R22

279

970

(201

5: R

90 2

20 0

79);

irre

gula

r ex

pend

iture

w

ere

repo

rted

by A

G to

hav

e be

en u

nder

stat

ed b

y R1

12 5

00 0

49

(201

5: u

nder

stat

ed b

y R9

0 22

0 07

9).

ofru

itles

s an

d w

aste

ful e

xpen

ditu

re R

3 30

5 07

6 (p

rior

oye

ars:

R20

486

965

) w

hich

mig

ht b

e un

ders

tate

d by

R23

792

041

(2

015:

R20

486

965

) �

An in

depe

nden

t co

nsul

ting

firm

is c

urre

ntly

per

form

ing

an in

vest

igat

ion

at

the

requ

est

of t

he N

orth

Wes

t De

partm

ent

of F

EED

and

the

North

Wes

t De

partm

ent o

f Loc

al G

over

nmen

t, w

hich

cov

ers

the

perio

d 1

Janu

ary

2011

to

30

Nove

mbe

r 20

14.

The

mat

ters

und

er in

vest

igat

ion

mai

nly

deal

with

pr

ocur

emen

t and

hum

an re

sour

ce is

sues

. Ts

wai

ng L

ocal

M

unici

palit

y Qu

alifi

ed A

udit

Opin

ion

Not R

egar

ded

as a

Go

ing

Conc

ern

�M

ater

ial

miss

tate

men

ts r

elat

ing

to d

isclo

sure

ite

ms

wer

e id

entif

ied

by

audi

tors

in t

he s

ubm

itted

fina

ncia

l sta

tem

ents

and

sub

sequ

ently

cor

rect

ed.

Supp

ortin

g do

cum

enta

tion

subm

itted

dur

ing

the

audi

t di

d no

t ad

equa

tely

su

ppor

t disc

losu

res

�Au

dit o

pini

on im

prov

ed a

nd n

umbe

r of q

uali f

icatio

n pa

ragr

aphs

dec

reas

ed.

�Th

e M

unici

palit

y di

d no

t ha

ve a

fun

ctio

nal

audi

t co

mm

ittee

and

int

erna

l au

dit

durin

g th

e fin

ancia

l ye

ar,

whi

ch m

eans

the

y fa

iled

to f

ulfil

the

ir le

gisla

ted

resp

onsib

ilitie

s as

set

out

in M

FMA

166-

167.

The

Mun

icipa

lity

is pa

rt of

a s

hare

d se

rvice

aud

it co

mm

ittee

mod

el w

ith N

gaka

Dist

rict

and

Dits

obot

la lo

cal M

unici

palit

y.

�Le

ader

ship

sty

le is

not

con

tribu

ting

tow

ards

a c

lean

adm

inist

ratio

n. T

his

is ev

iden

ced

by t

he la

ck o

f im

plem

enta

tion

and

mon

itorin

g of

act

ion

plan

s to

ad

dres

s pr

ior

year

aud

it fin

ding

s. F

ailu

re t

o ap

poin

t ap

prop

riate

ly q

ualif

ied

staf

f led

to m

atte

rs to

be

repo

rted

on re

peat

edly

. �

Unau

thor

ised,

irre

gula

r an

d fru

itles

s an

d w

aste

ful e

xpen

ditu

re in

curre

d by

th

e M

unici

palit

y w

as n

ot in

vest

igat

ed to

det

erm

ine

if an

y pe

rson

is li

able

for

the

expe

nditu

re,

as r

equi

red

by s

ectio

n 32

(2)(

a)(ii

) of

the

MFM

A. T

he

follo

win

g am

ount

s w

ere

disc

lose

d in

the

AFS:

84


MU

NIC

IP

ALIT

Y

AU

DIT

O

UT

CO

ME

G

OIN

G C

ON

CE

RN

A

SS

ES

SM

EN

T O

UT

CO

ME

�Un

auth

orise

d R1

06 5

63 1

55 (

2015

: R66

793

073

) �

Irre

gula

r R2

679

048

(20

15:

R24

043

168)

; irr

egul

ar e

xpen

ditu

re a

s pe

r no

te 4

6 to

the

fin

anci

al s

tate

men

ts w

as o

vers

tate

d by

R36

972

840

(20

15:

unde

rsta

ted

by R

24 0

43 1

68)

�fru

itles

s an

d w

aste

ful e

xpen

ditu

re R

5 31

7 73

7 (p

rior y

ears

: R7

893

564)

�

An i

nves

tigat

ion

was

con

duct

ed a

t th

e re

ques

t of

the

Mun

icip

ality

, w

hich

co

vere

d th

e pe

riod

18 J

une

2015

to

30 J

une

2016

. Th

e in

vest

igat

ion

is on

th

e pr

evio

us M

unic

ipal

Man

ager

and

dire

ctor

of

corp

orat

e se

rvic

es o

n al

lege

d fin

anci

al m

iscon

duct

. The

inve

stig

atio

n w

as s

till o

ngoi

ng a

t the

dat

e of

the

audi

t rep

ort.

Dits

obot

la L

ocal

M

unic

ipal

ity

Qua

lifie

d au

dit

Opi

nion

No

t Re

gard

ed

as

a Go

ing

Conc

ern

�Au

dit o

pini

on im

prov

ed a

nd n

umbe

r of q

ualif

icat

ion

para

grap

hs d

ecre

ased

. �

The

Unau

thor

ised,

Irr

egul

ar, F

ruitl

ess

and

Was

tefu

l exp

endi

ture

incu

rred

by

Mun

icip

ality

has

not

bee

n in

vest

igat

ed in

term

s of

Sec

tion

32(2

)(a&

b) o

f the

M

unic

ipal

Fin

ance

Man

agem

ent

Act.

The

follo

win

g am

ount

s w

ere

disc

lose

d in

the

AFS:

o

Unau

thor

ised

R87

642

601

(201

5: R

43 2

13 1

18),

unde

rsta

ted

by

R167

765

702

. o

Irre

gula

r R4

327

377

(201

5: R

1 64

2 11

0)

oFr

uitle

ss a

nd w

aste

ful e

xpen

ditu

re R

13 4

67 5

40 (

2015

: R9

170

709)

�

The

audi

t co

mm

ittee

and

inte

rnal

aud

it fu

nctio

ns w

as n

ot e

ffect

ive

durin

g th

e pa

st y

ears

and

did

not

ass

ist t

he M

unic

ipal

ity in

any

reg

ard

in it

s qu

est

for

an im

prov

ed r

epor

ting

envi

ronm

ent.

The

lead

ersh

ip h

ad fa

iled

to fi

ll th

e cr

itica

l po

sitio

n of

Chi

ef F

inan

cial

Offi

cer,

Mun

icip

al M

anag

er a

nd o

ther

se

nior

man

ager

s.

Ratlo

u Lo

cal

Mun

icip

ality

Q

ualif

ied

audi

t op

inio

n Re

gard

ed a

s a

goin

g co

ncer

n �

The

mun

icip

al a

udit

opin

ion

has

regr

esse

d fro

m u

nqua

lifie

d au

dit o

pini

on to

qu

alifi

ed a

udit

opin

ion

�Th

e le

ader

ship

did

not

ade

quat

ely

exer

cise

app

ropr

iate

ove

rsig

ht o

ver

finan

cial

and

per

form

ance

repo

rtin

g, a

s w

ell a

s co

mpl

ianc

e m

atte

rs.

�Th

e Un

auth

orise

d, I

rreg

ular

, Fru

itles

s an

d W

aste

ful e

xpen

ditu

re in

curr

ed b

y

85


MU

NIC

IPA

LIT

Y

AU

DIT

O

UT

CO

ME

G

OIN

G C

ON

CE

RN

A

SS

ES

SM

EN

T O

UT

CO

ME

Mun

icipa

lity

has

not b

een

inve

stig

ated

in te

rms

of S

ectio

n 32

(2)(

a&b)

of t

he

Mun

icipa

l Fin

ance

Man

agem

ent A

ct. T

he fo

llowi

ng a

mou

nts

were

disc

lose

d in

the

AFS:

o

Unau

thor

ised

prio

r yea

rs R

28 3

23 5

19

oIrr

egul

ar R

4 97

0 74

5 (p

rior y

ears

: R60

299

014

) o

Frui

tless

and

was

tefu

l exp

endi

ture

R23

000

(prio

r yea

rs: R

176

692)

�

The

audi

t co

mm

ittee

and

the

inte

rnal

aud

it un

it wh

ere

not

effe

ctive

and

fu

nctio

nal t

hrou

ghou

t the

yea

r Ra

mot

sher

e Lo

cal

Mun

icipa

lity

Qual

ified

Aud

it Op

inio

n Re

gard

ed a

s a

Goin

g Co

ncer

n �

Mat

eria

l miss

tate

men

ts o

f disc

losu

re it

ems

iden

tifie

d by

the

audi

tors

in th

e su

bmitt

ed

finan

cial

stat

emen

ts

were

su

bseq

uent

ly co

rrect

ed

and

the

supp

ortin

g re

cord

s we

re

prov

ided

su

bseq

uent

ly,

but

the

unco

rrect

ed

mat

eria

l m

issta

tem

ents

res

ulte

d in

the

fin

ancia

l st

atem

ents

rec

eivin

g a

qual

ified

aud

it op

inio

n.

�Au

dit

opin

ion

dete

riora

ted

and

num

ber

of

qual

ifica

tion

para

grap

hs

incr

ease

d.

�Th

e M

unici

palit

y ha

d a

func

tiona

l aud

it co

mm

ittee

and

inte

rnal

aud

it du

ring

the

finan

cial y

ear.

Actio

ns ta

ken

by th

e in

tern

al a

udit

and

audi

t com

mitt

ee

did

not h

ave

the

desir

ed im

pact

on

the

impl

emen

tatio

n of

inte

rnal

con

trols,

re

sulti

ng in

the

inte

rnal

cont

rol e

nviro

nmen

t ove

r fin

ancia

l and

per

form

ance

in

form

atio

n an

d co

mpl

ianc

e wi

th la

ws a

nd re

gula

tions

bei

ng in

effe

ctive

�

Actio

n pl

ans

did

not

adeq

uate

ly ad

dres

s pr

ior

year

aud

it fin

ding

s an

d po

licie

s an

d pr

oced

ures

im

plem

ente

d di

d no

t en

able

and

sup

port

the

unde

rsta

ndin

g an

d ex

ecut

ion

of in

tern

al c

ontro

l obj

ectiv

es, p

roce

sses

, and

re

spon

sibilit

ies.

�Un

auth

orise

d, ir

regu

lar

and

fruitl

ess

and

wast

eful

exp

endi

ture

incu

rred

by

the

Mun

icipa

lity

was

not i

nves

tigat

ed to

det

erm

ine

if an

y pe

rson

is li

able

for

the

expe

nditu

re,

as r

equi

red

by s

ectio

n 32

(2)(

a)(ii

) of

the

MFM

A. T

he

follo

wing

am

ount

s we

re d

isclo

sed

in th

e AF

S:

oUn

auth

orise

d R1

49 9

73 4

94 w

as o

vers

tate

d by

R18

487

754

86


MU

NIC

IPA

LIT

Y

AU

DIT

O

UT

CO

ME

G

OIN

G C

ON

CE

RN

A

SS

ES

SM

EN

T O

UT

CO

ME

oIrr

egul

ar R

98 1

73 6

08 w

as d

isclo

sed

in A

FS

ofru

itles

s an

d wa

stef

ul e

xpen

ditu

re R

1 49

5 31

4 (p

rior

oye

ars:

R3

034

946)

Mah

ikeng

Lo

cal

Mun

icipa

li ty

�Th

e le

ader

ship

did

not

ade

quat

ely

exer

cise

appr

opria

te o

vers

ight

ove

r fin

ancia

l and

per

form

ance

rep

ortin

g, c

ompl

ianc

e wi

th la

ws a

nd r

egul

atio

ns

and

rela

ted

inte

rnal

con

trols.

Thi

s ha

s le

d to

mat

eria

l miss

tate

men

ts a

nd

cont

rol d

efici

encie

s id

entif

ied

in fi

nanc

ial a

nd p

erfo

rman

ce re

ports

. �

The

Unau

thor

ised,

Irre

gula

r, Fr

uitle

ss a

nd W

aste

ful e

xpen

ditu

re in

curre

d by

M

unici

palit

y ha

s no

t bee

n in

vest

igat

ed in

term

s of

Sec

tion

32(2

)(a&

b) o

f the

M

unici

pal F

inan

ce M

anag

emen

t Act

. The

follo

wing

am

ount

s we

re d

isclo

sed

in th

e AF

S:

�Un

auth

orise

d R1

33 4

45 2

07 (2

015:

R44

3 76

9 04

2 �

Irreg

ular

R13

3 58

4 14

6 (2

015

R350

877

704

) �

fruitl

ess

and

wast

eful

exp

endi

ture

R37

0 76

9 (2

015:

R7

161

435)

�

Ther

e wa

s an

aud

it co

mm

ittee

whi

ch s

erve

d th

e M

unici

palit

y, a

lthou

gh it

di

d no

t mak

e an

impa

ct in

the

Mun

icipa

lity.

The

inte

rnal

aud

it fu

nctio

n wa

s on

ly op

erat

iona

l for

thre

e m

onth

s du

ring

the

finan

cial y

ear.

Bot

h fu

nctio

ns

did

not

assis

t th

e M

unici

palit

y in

any

reg

ard

in it

s qu

est

for

an im

prov

ed

repo

rting

env

ironm

ent.

CH

ALLE

NG

ES

Mat

eria

l miss

tate

men

ts w

ere

iden

tifie

d by

AG,

and

Mun

icipa

litie

s we

re g

iven

an o

ppor

tuni

ty to

cor

rect

them

. Thi

s le

d to

im

prov

ed a

udit

opin

ion.

Thi

s co

uld

be in

terp

rete

d as

failu

re b

y M

unici

palit

ies

to p

rodu

ce q

ualit

y AF

S’ th

at a

re G

RAP

com

plia

nt o

n th

e le

gisla

ted

subm

issio

n da

te.

87


INTERVENTION STRATEGIES/ RECOMMENDATION

� The Department will continue to support and monitor the implementation of the municipal audit action plans.

� The Department has developed Revenue Enhancement Plans, for all Municipalities. Implementation of the Revenue Enhancement Plans is currently being monitored.

� The Department continues to monitor compliance to Municipal Property Rates Act by all Local Municipalities.

� The Department will continue to capacitate MPACs on how to deal with Section 32 processes of the Municipal Finance Management Act.

� The Department continues to train and support Municipal Public Accounts Committees (MPACs) on how to carry out its oversight role.

� The Department, in partnership with CATA, continues to assist Municipalities to address the lack of safe guarding of information in affected Municipalities.

� The Department continues to monitor the functionality of Internal Audit and Audit Committees of Municipalities, as prescribed in MFMA Sec 166.

� The Department through Legal Task Team (LTT) and Municipal Administration Directorate are providing Municipalities with all policies specific to the sector to address the gap identified by AG in lack of policies in Municipalities.

� The Department to partner with Provincial Treasury on municipal financial planning processes and assessment of section 71 reports in order to provide early warning indicators to Municipalities for corrective measures to be implemented.

� Continuous review of Unauthorised Irregular Fruitless & Wasteful expenditure register to eliminate items not defined as Unauthorised Irregular Fruitless & Wasteful expenditure

� Follow-ups to be made with Municipalities to ensure submission of Unauthorised Irregular Fruitless & Wasteful expenditure registers.

� The Department to partner with Provincial Treasury to assist Municipalities to address government debts and deal with disputed properties with Transnet and other Departments.

� Follow up with Departments for property verification process, to enable Municipalities know their properties

� The Department to make necessary arrangements with Municipalities to direct payments received towards Eskom account.

� To continue to monitor adherence to payment arrangements made with creditors � Continuously capacitate the Internal Audit Units in Municipalities. � That the lower spending by Municipalities on capital projects, funded from MIG

allocations be noted. It is however recommended that vacant posts in the Project Management Units be filled to improve spending on capital projects.

� The Municipalities have to ensure that the audit action plans are implemented timeously, this approach will ensure that there are no repeated findings in the future.

� Municipalities to implement cost containment measures as per Circular 82 of the MFMA

88


6 KPA 5:Good Governance and Public Participation

6.1 Integrated development plan (IDP) assessment

The National Development Plan (NDP, 2012) created a new policy environment in which all South Africans actively participate in their development and work together as one nation to achieve the aspirations of the NDP.

The Medium Term Strategic Framework (MTSF, 2015/16-2019/20) as adopted by Cabinet breaks down the long-term goals and objectives of the NDP into 5-year objectives and targets. It further formulated 14 national Outcomes to be achieved over the MTSF period. These Outcomes with stated objectives and targets then form the basis for provincial Departments to align their strategic and annual performance planning accordingly and contribute towards these Outcomes as per provincial problem statement and needs’ analysis and in response to the priorities of the Provincial Development Plan (PDP).

At local level, the Integrated Development Plans (IDP’s) provide for a formal platform for communities and government to engage on, plan for and implement development initiatives. They represent the centrepiece into which all activities of government should be integrated, from the local to the provincial and the national sphere of government including State Owned Enterprises (SOE’s).

Consideration must be given to recent policy pronouncements in SOPA regarding the close involvement of communities in ward-based planning and a provincial strategic focus on the five concretes namely;Agricultural, Culture and Tourism ( ACT) VTSD , Reconciliation, Healing and Renewal (RHR), Saamtrek – Saamwerk philosophy and Setsokotsane approach.

IDP submission

All Municipalities submitted IDP to Department as per legislative requirements.

Assessment Framework

The framework for this assessment of the IDP’s for 2015/16 is taking the new policy and strategy environment as a basis of analysis and contextualises it as per the mandate of Local Government. It also asks certain guiding questions in relation to Provincial Policy priorities and its implementation by the Municipalities.

The office of the premier supported the Department in assessing the IDP, and focus to address content related to development issues.

89


High Level Observations

� The 23 Municipalities used the same methodology in developing and

reviewing the IDPs. � Most of the Municipalities’ situational analysis is comprehensive and

captured the demographics and service delivery challenges. Some Municipalities proposed possible interventions to address the challenges.

� Some Municipalities used very old statistics. This results in misaligned planning which results in not addressing the actual problems on the ground.

� Some of the Municipalities included in their IDPs the needs of the communities at ward level whilst others did not.

� Most Municipalities did not prioritize community service delivery challenges and backlogs in their order of needs. Prioritizing could make planning for implementation of projects and programmes easier to address the communities’ key service delivery challenges.

� The most common challenges across the Municipalities are water, electricity and roads infrastructure.

� Some of the municipal IDPs do not have performance indicators. This makes it difficult to monitor the performance and also to measure the extent to which the Municipality has achieved its targets or not.

� Most of the IDPs’ strategic objectives are poorly crafted. They are more operational and activities rather than high level output statements.

� Some Municipalities have aligned their strategic goals and KPAs to the MTSF Outcomes and the 10-Point Plan.

� Most of the Municipalities’ performance targets and indicators are poorly crafted. They are not SMART and not well-defined respectively

� Some performance targets are not aligned to the performance indicators. � The Municipalities did not mention how they will implement projects or

programmes in realization of the 5th administration priorities, namely; the Rebranding, Repositioning and Renewal (RRR) strategy anchored on the five concretes.

HIGHLEVEL RECOMMENDATIONS

� Given the finding there is great need to engage closer with Municipalities beyond compliance and process issues, to ensure that the IDP’s being the centrepiece around which all development takes place in a local space, can truly become the integrated planning tool for the implementation of the NDP/MTSF and five concretes to unfold towards 2030, aligning the 5-year planning cycles of the MTSF and the IDP’s over the long term. The current drive to revitalise community-based planning and VTSD Plans

90


must become an integral part of future IDP engagement. It is therefore recommended that:

� The inclusion of community needs into an evidence-based planning tool that supports a process of prioritisation and targeting of critical developmental needs of communities linked with strategic performance indicators must find due consideration.

� With the development of the reviewed and up-dated Provincial Spatial Development Plan (PSDF) currently undertaken by the Office of the Premier in collaboration with all stakeholders, value will be added to the current spatial development frameworks of Municipalities.

� A strong coordination structure at technical level to support and guide integrated planning and set priorities should be established/strengthened.

� Municipalities to use latest statistics. � Improve the crafting of strategic objectives. � Improve the crafting of performance targets and indicators to be SMART

and well-defined. � Infuse the provincial priorities and demonstrate how the Municipality is

going to support the implementation of RRR and the five concretes.

6.2 Councillors and Council Meetings Attendance

Municipality

Total Council Members

Full Time Councillors

Part Time Councillors

Average Percentage Council Meetings Attendance

Average Percentage Apologies for non-attendance

% % Ngaka Modiri Molema DM

40 15 25 No info No info

Tswaing LM 30 8 22 76% 21% Ratlou LM 29 5 24 77% 23% Mahikeng LM 36 11 25 71% 47% Ditsobotla LM 38 0 38 75% 16% Maquassi-Hills LM 5 5 No info 85% 15% City of Matlosana LM 12 5 12 76% 9% Ventersdorp LM 22 1 21 81% 38% Tlokwe City Council LM 51 14 36 91% No info Dr Ruth Segomotsi Mompati DM 29 8 21 74% 25% Lekwa-Teemane LM 14 1 13 No info No info Greater 51 13 37 8% 3%

91


Municipality

Total Council Members

Full Time Councillors

Part Time Councillors

Average Percentage Council Meetings Attendance

Average Percentage Apologies for non-attendance

% % Taung LM Bojanala Platinum DM 69 13 56 33% 27% Rustenburng LM 55

No info No info 13% No info

Kgetleng Rivier LM 5 1 4 80% No info Madibeng LM 74 14 58 44%


6.3 MPAC functionality

Municipality Category Functional MPAC 2015/16 City of Matlosana LM B1 Functional Madibeng LM B1 Partial Functional Rustenburg LM B1 Functional Tlokwe City Council LM B1 Partial Functional Mahikeng LM B2 Partial Functional Ditsobotla LM B3 Partial Functional Tswaing LM B3 Not Functional Ramotshere Moiloa LM B3 Functional Naledi LM B3 Functional Mamusa LM B3 Not Functional Lekwa-Teemane LM B3 Not Functional Maquassi Hills LM B3 Not Functional Ventersdorp LM B3 Not Functional Kgetleng-Revier LM B3 Not Functional Ratlou LM B4 Partial Functional Greater Taung LM B4 Functional Kagisano-Molopo LM B4 Functional Moretele LM B4 Functional Moses Kotane LM B4 Functional Bojanala Platinum DM C1 Partial Functional Dr. Kenneth Kaunda DM C1 Partial Functional Dr. Ruth Segomotsi Mompati DM C2 Partial Functional

92


Municipality Category Functional MPAC 2015/16 Ngaka Modiri Molema DM C2 Partial Functional Average Partial Functional (50%)

� MPACs that were not functional complained of lack of support from administration.

� Instability within the MPAC, wherein members resigned during their term or council would change MPAC members.

� Lack of support from council, wherein council would not implement MPAC recommendations as well as failure to follow up on MPAC resolutions.

6.4 Tabling and Submission Of The Oversight Report

Municipality Annual reports tabled

Oversight Report tabled & Submitted

Not Complied with the tabling & submission

Bojanala Platinum district Ѵ Ѵ Moretele Ѵ Ѵ Rustenburg Ѵ Ѵ Kgetlengrivier Ѵ Ѵ Moses Kotane Ѵ Ѵ Madibeng Ѵ Ѵ Ngaka Modiri Molema district Ѵ Ѵ Ratlou Ѵ Ѵ Tswaing Ѵ(some

components) Ѵ

Mahikeng Ѵ Ѵ Ditsobotla Ѵ Ѵ Ramotshere Moiloa Ѵ Ѵ Dr Ruth Segomotsi Mompati Ѵ Ѵ Kagisano Molopo Ѵ Ѵ Naledi Ѵ Ѵ Mamusa Ѵ Ѵ Greater Taung Ѵ Ѵ Lekwa Teemane Ѵ Ѵ Dr Kenneth Kaunda district Ѵ Ѵ Ventersdorp Ѵ Ѵ Tlokwe Ѵ Ѵ City of Matlosana Ѵ Ѵ Maquassi Hills Ѵ Ѵ

93


� The Department assisted Municipalities with the dummy oversight report, which makes it easier for Municipalities to compile/ draft the Oversight Report on Annual Report.

� Fourteen (14) Municipalities tabled the Oversight Report on Annual Report for the 2015/16 Financial Year. Nine (09) Municipalities have not tabled as per the above table.

� The Department will conduct a workshop for MPACs on how to compile an accurate Oversight Report.

� The Department will devise a plan to intervene in Municipalities that have not complied with the tabling of the reports. The affected Municipalities that will be prioritised and assisted with addressing the backlogs of compiling an Oversight Report on the Annual Reports are as follows: Maquassi Hills LM, Lekwa-Teemane LM, Kgetlengrivier LM, Mamusa LM, Tswaing LM and Ditsobotla LM. The following Municipalities will be monitored to submit their reports Ratlou LM, Ramotshere Moiloa LM and Tlokwe LM.

6.5 Ward Committees

Functional ward committees are critical to the National Strategic Objective of Deepening Democracy through Public Participation. This is part of Output 9 of the Delivery Agreement which is a performance contract between the President and Executive Authorities.

The Department has introduced a tool in a form of a questionnaire to assess the functionality of ward committees on a six monthly basis and also to determine whether Municipalities were providing necessary administrative support to enhance ward committees functionality and responsiveness.

Established Ward Committees.

All ward committees for 18 local Municipalities have been established except for ward 28 in Rustenburg local Municipality. Several attempts were made by the Municipality to have the ward committee established but with no success.

Number of Vacancies.

The serious challenge is that some Municipalities were still neglecting to fill vacancies timeously despite the request made by the Department that whenever a vacancy occurred, it must be filled immediately and at least within three months after it occurred. The audit conducted at some of these Municipalities reflected that some vacancies were left unfilled for a period exceeding one year. The table below reflects vacancies situation at various local Municipalities.

94


Name of Municipality Number of vacancies

Total number of ward committee members

Percentage of vacancies

1.Rustenburg 24 370 6% 2.Matlosana 35 350 10% 3.Madibeng - 360 - 4.Mahikeng 11 310 4% 5.Moretele - 280 - 6.Ditsobotla 11 210 5% 7.Ramotshere Moiloa - 200 - .Tswaing - 150 - 9.Kagisano-Molopo 2 150 1% 10.Ratlou - 140 - 11.Kgetleng Rivier 60 -

12.Lekwa Teemane 9 70 13%

13.Maauassi Hills 9 110 8%

14.Naledi - 90 - 15.Greater Taung 9 260 4% 16.Mamusa - 80 - 17.Moses Kotane 26 310 8% 18.Ventersdorp 7 60 10% 19.Tlokwe 24 260 9% Total 167 3820 7%

The gender representation for both males and females differs from one Municipality to another and the level of representation is regarded as fair and acceptable.

6.6 Functional ward committees Municipalities % functionality Non functional

Wards Average Public ward meetings held

Rustenburg 71% 28 No info Madibeng - 33 No info Moses Kotane 71% 19 12 Kgetleng Rivier 48% 2 38 Moretele 91% No info Mahikeng 71% 4,5,9,13 & 26 No info

95


Municipalities % functionality Non functional Wards

Average Public ward meetings held

Ditsobotla 71% 4 Ramotshere Moiloa

71% 4

Tswaing 51% 0 Ratlou 91% 4 Kagisano- Molopo

90% 1 12

Naledi 51% 1,3,4,5,6,7,8 & 9 No info Greater Taung 71% 4 Mamusa - 7 No info Lekwa Teemane 71% 6 No info City of Matlosana

- 21 4

Ventersdorp 51% 2,3 & 4 No info Tlokwe city council

71% 3

Maquassi Hills 51% 5 1 Average/Total 68% 25 8

The percentage of functionality ratings are based on the following: � Ward committee meetings taking place regularly with good attendance by

members. � Community meetings taking place regularly for information and feedback. � Regular submission of minutes and reports to the Office of the Speaker. � Development and implementation of an annual operational plan. � Doing regular door to door visits, etc.

Administrative Support Given To Ward Committees.

The administrative support, among others refers to issues like, training of ward committees, provision of stationary, provision of loud hailing for public meetings, access to telephone/cell phones, access to internet and computer, name tags, typing and printing of reports, access to photo copies, allocation of laptops to secretaries and provision of transport where necessary. The administrative support given to ward committees differs from one Municipality to another and proper administrative support is necessary to ensure functional and effective ward committees.

Budget Allocation and Stipends Payable.

The table listed under reflects Municipality's budget allocation towards providing administrative support and payment of stipends for ward committees. The majority of Municipalities were paying a stipend of R1000 per month (PM) to their ward

96


committee members and only 4 Municipalities paying far less than that, they are Lekwa-Teemane of R500 PM, Mamusa of R500 PM , Ventersdorp of R750 PM and Tlokwe. For level 1 to 3 local Municipalities, an amount of R500 PM is included in these Municipalities Equitable Share and theirs is to top it up to make it R1000 PM. While we concede that ward committees according to legislation are not entitled to receive remuneration, however, the out of pocket expenses payable should be sufficient to serve as an incentive that encourages them to serve as a ward committee member.

Participation of CDW's In Ward Committee Meetings.

Community Development Workers are supposed to attend ward committee meetings as ex-officio members. All local Municipalities have indicated that Community Development Workers formed part of ward committees' meetings

Feedback to Ward Committees.

To avoid unnecessary protest marches and petitions by members of the communities, it is crucial that communities must be provided with regular feedback.

Ward Committees with Proper Venues For Holding Meetings

The majority of Municipalities' use schools, ward councillors' houses, churches, community halls and ward committees' members houses to hold ward committees' meetings. There are ward committees that conduct their management meetings in open field or under the trees. The majority of these facilities are not appropriate for obvious reasons. Local Municipalities assisted by district Municipalities must be encouraged to secure or build proper structures to enable ward committees to hold their meetings without hindrance. Another option is to use tribal offices were possible. To date only Moretele Local Municipalities built offices for their ward committees.

97


6.7

An

ti-C

orr

up

tio

n

No

N

am

e

of

Mu

nic

ipa

lity

S

tatu

s

of

An

ti-

Co

rru

pti

on

Po

licy

Imp

lem

en

tati

on

o

f A

nti

-C

orr

up

tio

n

Str

ate

gy

Nu

mb

er

of

Ca

se

s

Re

po

rted

a

nd

R

eso

lve

d

Ove

rall

Ch

all

en

ge

s

1.

Bo

jan

ala

DM

An

ti-co

rrupt

ion

Polic

y is

in p

lace

and

ado

pted

bu

t not

alig

ned

to th

e re

view

ed L

GA

CS

No

impl

emen

tatio

n pl

ans

None

E

sta

bli

sh

me

nt

of:

�An

ti-Co

rrupt

ion

com

mitt

ees

�

Appo

intm

ent o

f Eth

ics O

ffice

r/M

anag

er is

stil

l a

chal

leng

e in

all

22 M

unici

palit

ies.

�

Impl

emen

tatio

n of

Loc

al G

ovt A

nti-c

orru

ptio

n St

rate

gy

�M

unici

palit

ies

also

lack

a d

edica

ted

Unit/

com

pone

nt to

dea

l with

the

need

for a

nd

obje

ctiv

es o

f Ant

i-cor

rupt

ion

mat

ters

with

in

Mun

icipa

litie

s w

hich

add

ress

es th

e fo

llow

ing;

2

.R

uste

nb

urg

LM

Po

licy

in p

lace

and

ad

opte

d s

till n

eed

to

be a

ligne

d to

the

revi

ewed

LG

AC

S

No

impl

emen

tatio

n pl

ans

in p

lace

3 C

ase

s

rece

ive

d;

Ongo

ing

Esta

blish

men

t of A

nti-C

orru

ptio

n co

mm

ittee

s an

d ap

poin

tmen

t of E

thics

Offi

cer i

s st

ill a

chal

leng

e to

all

22

Mun

icipa

litie

s

3.

Mo

se

s K

ota

ne

LM

Po

licy

in p

lace

and

ad

opte

d st

ill ne

ed to

be

alig

ned

to th

e re

view

ed

LG

AC

S

Impl

emen

tatio

n pl

ans

in p

lace

O

ne C

ase

ongo

ing

- De

pt a

wai

ting

for P

OE

Esta

blish

men

t of A

nti-C

orru

ptio

n co

mm

ittee

s an

d ap

poin

tmen

t of E

thics

Offi

cer i

s st

ill a

chal

leng

e to

all

22

Mun

icipa

litie

s

4.

Kg

etl

en

g

Riv

ier

LM

Dr

aft P

olicy

exi

sts

and

still

need

to b

e al

igne

d to

the

revi

ewed

LGA

C St

rate

gy.

No

impl

emen

tatio

n pl

ans

in p

lace

No c

ases

re

ceive

d Es

tabl

ishm

ent o

f Ant

i-Cor

rupt

ion

com

mitt

ees

and

appo

intm

ent o

f Eth

ics O

ffice

r is

still

a ch

alle

nge

to a

ll 22

M

unici

palit

ies

5.

Ma

dib

en

g L

M

Polic

y in

pla

ce a

nd

Com

bine

d No

cas

es

Esta

blish

men

t of A

nti-C

orru

ptio

n co

mm

ittee

s an

d

98


No

N

am

e

of

Mu

nic

ipa

lity

S

tatu

s

of

An

ti-

Co

rru

pti

on

Po

licy

Imp

lem

en

tati

on

o

f A

nti

-C

orr

up

tio

n

Str

ate

gy

Nu

mb

er

of

Ca

se

s

Re

po

rted

a

nd

R

eso

lve

d

Ove

rall

Ch

all

en

ge

s

adop

ted

still

need

to b

e al

igne

d to

the

revie

wed

LG

AC

S

Impl

emen

tatio

n pl

ans

in p

lace

for

all p

olici

es

rece

ived

ap

poin

tmen

t of E

thics

Offi

cer i

s st

ill a

chal

leng

e to

all

22

Mun

icipa

litie

s

6.

Mo

rete

le L

M

Polic

y in

pla

ce a

nd

adop

ted

still

need

to b

e al

igne

d to

the

revie

wed

LG

AC

S

No

impl

emen

tatio

n pl

ans

in p

lace

1 C

ase

rece

ived

De

pt a

wai

ting

for P

OE

Esta

blish

men

t of A

nti-C

orru

ptio

n co

mm

ittee

s an

d ap

poin

tmen

t of E

thics

Offi

cer i

s st

ill a

chal

leng

e to

all

22

Mun

icipa

li tie

s

7.

Dr.

Ke

nn

eth

K

au

nd

a D

M

Draf

t Pol

icy e

xist

s an

d st

ill ne

ed to

be

alig

ned

to th

e LG

AC S

trate

gy.

No

impl

emen

tatio

n pl

ans

in p

lace

ON

E C

ase

Ne

potis

m

Dept

aw

aitin

g fo

r POE

Esta

blish

men

t of A

nti-C

orru

ptio

n co

mm

ittee

s an

d ap

poin

tmen

t of E

thics

Offi

cer i

s st

ill a

chal

leng

e to

all

22

Mun

icipa

li tie

s

8.

Tlo

kw

e-

Ve

nte

rsd

orp

LM

Anti-

corru

ptio

n Po

licy

is in

pla

ce a

nd a

dopt

ed

but n

ot a

ligne

d to

the

LG

AC

S

No

impl

emen

tatio

n pl

ans

in p

lace

1 O

ngoi

ng

case

SIU

in

vest

igat

ion

Esta

blish

men

t of A

nti-C

orru

ptio

n co

mm

ittee

s an

d ap

poin

tmen

t of E

thics

Offi

cer i

s st

ill a

chal

leng

e to

all

22

Mun

ic ipa

litie

s

9.

Ma

tlo

sa

na

LM

An

ti-co

rrupt

ion

Polic

y is

in p

lace

and

ado

pted

bu

t not

alig

ned

to th

e LG

AC

S

No

impl

emen

tatio

n pl

ans

in p

lace

4 c

ases

re

ceive

d -

hous

ing

mat

ters

stil

l on

goin

g

Esta

blish

men

t of A

nti-C

orru

ptio

n co

mm

ittee

s an

d ap

poin

tmen

t of E

thics

Offi

cer i

s st

ill a

chal

leng

e to

all

22

Mun

icipa

li tie

s

10

.M

aq

ua

sie

Hil

ls

LM

De

velo

pmen

t of A

nti-

Corru

ptio

n Po

licy

still

rem

ains

a c

halle

nge.

No

impl

emen

tatio

n pl

ans

in p

lace

No c

ases

re

ceive

d Es

tabl

ishm

ent o

f Ant

i-Cor

rupt

ion

com

mitt

ees

and

appo

intm

ent o

f Eth

ics O

ffice

r is

still

a ch

alle

nge

to a

ll 22

M

unici

palit

ies

11

.N

ga

ka

Mo

dir

i M

ole

ma

DM

Dr

aft P

olicy

exi

st a

nd

still

need

to b

e al

igne

d No

im

plem

enta

tion

No c

ases

re

ceive

d Es

tabl

ishm

ent o

f Ant

i-Cor

rupt

ion

com

mitt

ees

and

appo

intm

ent o

f Eth

ics O

ffice

r is

still

a ch

alle

nge

to a

ll 22

99


No

N

am

e

of

Mu

nic

ipa

lity

S

tatu

s

of

An

ti-

Co

rru

pti

on

Po

licy

Imp

lem

en

tati

on

o

f A

nti

-C

orr

up

tio

n

Str

ate

gy

Nu

mb

er

of

Ca

se

s

Re

po

rted

a

nd

R

eso

lve

d

Ove

rall

Ch

all

en

ge

s

to th

e LG

AC

S pl

ans

in p

lace

M

unici

palit

ies

12

.M

afi

ke

ng

LM

No

Ant

i-Cor

rupt

ion

Polic

y in

Pla

ce,

No

impl

emen

tatio

n pl

ans

in p

lace

On

e c

ase

Re

ferre

d to

SI

U

Esta

blish

men

t of A

nti-C

orru

ptio

n co

mm

ittee

s an

d ap

poin

tmen

t of E

thics

Offi

cer i

s st

ill a

chal

leng

e to

all

22

Mun

icipa

litie

s 1

3.

Dit

so

bo

tla

LM

De

velo

pmen

t of A

nti-

Corru

ptio

n Po

licy

still

rem

ains

a c

halle

nge.

No

impl

emen

tatio

n pl

ans

in p

lace

No c

ases

re

ceiv

ed

Esta

blish

men

t of A

nti-C

orru

ptio

n co

mm

ittee

s an

d ap

poin

tmen

t of E

thics

Offi

cer i

s st

ill a

chal

leng

e to

all

22

Mun

icipa

li tie

s 1

4.

Ra

tlo

u L

M

Polic

y in

pla

ce a

nd

adop

ted

still

need

to b

e al

igne

d to

the

revi

ewed

LG

AC

S

No

impl

emen

tatio

n pl

ans

in p

lace

No c

ases

re

ceiv

ed

Esta

blish

men

t of A

nti-C

orru

ptio

n co

mm

ittee

s an

d ap

poin

tmen

t of E

thics

Offi

cer i

s st

ill a

chal

leng

e to

all

22

Mun

icipa

li tie

s

15

.T

sw

ain

g L

M

Deve

lopm

ent o

f Ant

i-Co

rrupt

ion

Polic

y st

ill re

mai

ns a

cha

lleng

e.

No

impl

emen

tatio

n pl

ans

in p

lace

1 ca

se

ongo

ing

Esta

blish

men

t of A

nti-C

orru

ptio

n co

mm

ittee

s an

d ap

poin

tmen

t of E

thics

Offi

cer i

s st

ill a

chal

leng

e to

all

22

Mun

icipa

litie

s 1

6.

Ra

mo

tsh

ere

M

oil

wa

LM

An

ti-co

rrupt

ion

Polic

y is

in p

lace

, alig

ned

to

LGAC

S an

d ad

opte

d

Impl

emen

tatio

n pl

ans

in p

lace

N

o c

ase

s

Esta

blish

men

t of A

nti-C

orru

ptio

n co

mm

ittee

s an

d ap

poin

tmen

t of E

thics

Offi

cer i

s st

ill a

chal

leng

e to

all

22

Mun

icipa

litie

s 1

7.

Dr.

Ru

th

Se

go

mo

tsi

DM

An

ti-co

rrupt

ion

Polic

y is

in p

lace

and

ado

pted

bu

t not

alig

ned

to

LG

AC

S

No

impl

emen

tatio

n pl

ans

in p

lace

No

ca

se

s

Esta

blish

men

t of A

nti-C

orru

ptio

n co

mm

ittee

s an

d ap

poin

tmen

t of E

thics

Offi

cer i

s st

ill a

chal

leng

e to

all

22

Mun

icipa

li tie

s

18

.N

ale

di

LM

An

ti-co

rrupt

ion

Polic

y is

in p

lace

but

not

alig

ned

to L

GA

CS

No

impl

emen

tatio

n pl

ans

in p

lace

No

ca

se

s

Esta

blish

men

t of A

nti-C

orru

ptio

n co

mm

ittee

s an

d ap

poin

tmen

t of E

thics

Offi

cer i

s st

ill a

chal

leng

e to

all

22

Mun

icipa

litie

s 1

9.

Ka

gis

an

o/M

ol

Deve

lopm

ent o

f Ant

i-No

1

case

Es

tabl

ishm

ent o

f Ant

i-Cor

rupt

ion

com

mitt

ees

and

100


No

N

am

e

of

Mu

nic

ipa

lity

S

tatu

s

of

An

ti-

Co

rru

pti

on

Po

licy

Imp

lem

en

tati

on

o

f A

nti

-C

orr

up

tio

n

Str

ate

gy

Nu

mb

er

of

Ca

se

s

Re

po

rted

a

nd

R

eso

lve

d

Ove

rall

Ch

all

en

ge

s

op

o L

M

Corru

ptio

n Po

licy

still

rem

ains

a c

halle

nge.

im

plem

enta

tion

plan

s in

pla

ce

rece

ived

Ca

se

clo

sed

ap

poin

tmen

t of E

thics

Offi

cer i

s st

ill a

chal

leng

e to

all

22

Mun

icipa

litie

s 2

0.

Gre

ate

r T

au

ng

LM

An

ti-co

rrupt

ion

Polic

y is

in p

lace

and

ado

pted

bu

t stil

l nee

d to

be

alig

ned

to th

e LG

AC

S.

No

impl

emen

tatio

n pl

ans

in p

lace

No

ca

se

s

Esta

blish

men

t of A

nti-C

orru

ptio

n co

mm

ittee

s an

d ap

poin

tmen

t of E

thics

Offi

cer i

s st

ill a

chal

leng

e to

all

22

Mun

icipa

li tie

s

21

.Le

kw

a-

Te

ma

ne

LM

De

velo

pmen

t of A

nti-

Corru

ptio

n Po

licy

still

rem

ains

a c

halle

nge.

No

impl

emen

tatio

n pl

ans

in p

lace

No

ca

se

s

until

furth

er

notic

e

Esta

blish

men

t of A

nti-C

orru

ptio

n co

mm

ittee

s an

d ap

poin

tmen

t of E

thics

Offi

cer i

s st

ill a

chal

leng

e to

all

22

Mun

icipa

litie

s 2

2.

Ma

mu

sa

LM

De

velo

pmen

t of A

nti-

Corru

ptio

n Po

licy

still

rem

ains

a c

halle

nge.

No

impl

emen

tatio

n pl

ans

in p

lace

NO

Ca

se

s

rep

ort

ed

Es

tabl

ishm

ent o

f Ant

i-Cor

rupt

ion

com

mitt

ees

and

appo

intm

ent o

f Eth

ics O

ffice

r is

still

a ch

alle

nge

to a

ll 22

M

unici

palit

ies

Sect

ion

139[

1][b

] of t

he C

onst

itutio

n

Depa

rtmen

t is

satis

fied

with

the

prog

ress

mad

e sin

ce th

e in

voca

tion

of S

ectio

n 13

9[1]

[b] o

f the

Con

stitu

tion

of th

e Re

publ

ic in

five

(5

) mun

icipa

litie

s by

Pro

vinc

ial E

xecu

tive

Coun

cil o

n [M

adib

eng

LM fo

r Wat

er a

nd S

anita

tion,

Mat

losa

na L

M, T

swai

ng L

M,

Vent

ersd

orp

LM a

nd N

gaka

Mod

iri M

olem

a DM

] dur

ing

the

year

und

er re

view

. sig

nific

ant p

rogr

ess

has

been

atta

ined

. The

ser

vice

de

liver

y ch

alle

nges

that

wer

e ex

perie

nced

in th

ese

mun

icipa

litie

s ha

ve d

eclin

e. In

par

ticul

ar M

atlo

sana

LM

cou

ld n

ot s

ervic

e its

deb

t in

the

past

, tod

ay th

e m

unici

palit

y is

bette

r pla

ced

to h

onou

r its

deb

t. De

partm

ent a

ckno

wle

dges

that

ther

e ar

e st

ill ch

alle

nges

w

hich

are

bei

ng a

ddre

ssed

dec

isive

ly s

o. T

he in

terv

entio

ns w

ill re

mai

n un

til th

e 20

16 lo

cal g

over

nmen

t ele

ctio

ns in

Aug

ust 2

016.

101


6.9

Tlo

kw

e a

nd

Ve

nte

rsd

orp

me

rge

r

The

mer

ger o

f Tlo

kwe

and

Vent

ersd

orp

loca

l mun

icipa

litie

s is

on tr

ack

and

Polit

ical a

nd a

dmin

istra

tive

Com

mitt

ee w

ere

esta

blish

ed.

The

adm

inist

rativ

e co

mm

ittee

est

ablis

hed

eigh

t w

ork

Stre

ams

and

they

mee

t on

a w

eekl

y ba

sis t

o m

easu

re p

rogr

ess.

The

wor

k do

ne b

y th

e co

mm

ittee

has

bee

n ap

plau

ded

by th

e Na

tiona

l Mun

icipa

l Dem

arca

tion

Tran

sitio

nal C

omm

ittee

.

6.1

0 U

nd

er

pe

rfo

rmin

g M

un

icip

ali

tie

s

Not d

oing

wel

l Po

tent

ial t

o do

wel

l Kg

etle

ng-R

evie

r LM

Ve

nter

sdor

p LM

M

amus

a LM

Le

kwa-

Teem

ane

LM

Maq

uass

i Hills

LM

Ts

wai

ng L

M

Ratlo

u LM

M

ahik

eng

LM

Dr R

uth

Sego

mot

si M

ompa

ti DM

Bo

jana

la P

latin

um D

M

Dr. K

enne

th K

aund

a DM

Ng

aka

Mod

iri M

olem

a DM

102


Remedial action

� Train the Trainer Workshop on Anti-Corruption to be conducted with committed officials as most of the Municipalities do not have Anti-Corruption Policy, Strategy to implement, committees and Ethics officer in place.

� Continuous workshop training programme to accommodate new Councillor’s and some new personnel within Municipalities

6.9 Internal Audit and Audit Committee

In terms of Section 165 (1) and Section 166 (1) of MFMA No.56 of 2003, each Municipality and its municipal entity must establish an internal audit unit and Audit Committee respectively. National Treasury MFMA Circular No.65 issued on 23 November 2012 serves as a guide to assist Municipalities to improve the effectiveness of Internal Audit and Audit Committees. General status of functionality of delegated Municipalities -internal audit and audit committees

Internal Audit (Shared Service) - Ngaka Modiri Molema District

Municipalities Mandate Value Add Capacity Internal Audit Staff

Recognition

Ngaka Modiri Molema District (Shared Services)

Adequate

Inadequate

Adequate

10 staff members for Shared Services.

Adequate and functional

Ditsobotla LM (Shared Service)

Adequate

Inadequate

inadequate


Tswaing LM (Shared Services)

Adequate

Inadequate

Adequate


Ramotshere – Moiloa LM (Shared Services)

Adequate

Adequate

Adequate

04 Adequate, functional and effective

Ratlou LM (Own) Adequate

Adequate

Adequate

04 Adequate, functional and effective

Mafikeng LM (No Internal Audit)

Inadequate

Inadequate

Inadequate

Inadequate

Non existent

103


Audit Committee (AC) (Shared Service) - Ngaka Modiri Molema District

Municipalities Mandate Value Add

Capacity Audit Committee Members

Recognition

Ngaka Modiri Molema District Adequate Adequate Adequate 06

Functional Ditsobotla LM Adequate Inadequate Inadequate

Tswaing LM Adequate Inadequate Inadequate Ramotshere – Moiloa LM (Own)

Adequate Adequate Adequate 03 Functional and effective

Ratlou LM (AC Discontinued) Adequate Adequate Adequate 04 Adequate, functional and effective

Mafikeng LM (No AC) Inadequate Inadequate Inadequate 03 Non existent

Internal Audit (Shared Service)–DR. Ruth Segomotsi Mompati

Municipalities Mandate Value Add Capacity Internal Audit

Recognition

Dr.RSM DM (Shared

Services)

Adequate

Adequate Adequate 16 Staff members constituting of Chief Audit Executive , Internal Audit Manager, Senior Internal Auditors, Auditors and Interns


Naledi LM Adequate

Adequate Adequate Adequate and functional

Kagisano Molopo

LM

Adequate


Mamusa LM Adequate


LekwaTeemane LM Adequate Adequate Adequate Adequate, functional and effective

Greater Taung LM

Adequate Adequate Adequate Adequate, functional and effective

Audit Committee (Shared Service)–Dr. Ruth Segomotsi Mompati

Municipalities Mandate Value Add Capacity No. of Audit Committee Members

Recognition

Dr.RSM DM Adequate Adequate Adequate 05 Adequate, functional and effective.

Naledi LM Adequate Adequate Adequate Kagisano Molopo LM Adequate Adequate Adequate Mamusa LM Adequate Adequate Adequate LekwaTeemane LM Adequate Adequate Adequate Greater Taung LM Adequate Adequate Adequate

104


Internal Audit (IA) Unit - Bojanala District


Recognition

Bojanala Platinum DM

Adequate

Adequate

Inadequate

05

Adequate, functional but not effective

Moses Kotane LM

Adequate

Adequate

Adequate

05 Adequate, functional but not effective

Moretele LM (own IA )

Adequate

Inadequate

Inadequate


Madibeng LM (Own IA )

Adequate

Adequate

Inadequate


Kgetlengrivier LM (Own IA)

Adequate

Inadequate

Inadequate

01

Inadequate and ineffective

Audit Committee (AC) Shared Service – Bojanala District

Municipalities Mandate Value Add

Capacity No Audit Committee Members

Recognition

Bojanala Platinum DM (Shared Service)

Adequate

Adequate

Adequate

04

Functional & ineffective

Moses Kotane LM (Shared Service)

Adequate

Adequate

Adequate

Kgetlengrivier LM (Shared Service)

Adequate

Adequate

Adequate

Moretele LM (Own Audit Committee)

Adequate

Adequate

Adequate

03 Functional & ineffective

Madibeng LM (Own Audit Committee)

Adequate

Adequate

Adequate


Internal Audit (IA) Shared Service – Dr. Kenneth Kaunda District


Recognition

Dr. Kenneth Kaunda DM (Shared Service)

Adequate

Inadequate

Inadequate

07


Maquassi Hills LM (Shared Service)

Adequate

Inadequate

Ventersdorp / Tlokwe (Own IA) Merger

Adequate

Adequate

Inadequate


City of Matlosana LM (Own IA)

Adequate

Adequate

Adequate

07

Adequate, functional and ineffective

105


Audit Committee (AC) (Shared Service)–Dr. Kenneth Kaunda District

Municipalities Mandate Value Add Capacity Audit Committee Members

Recognition

Dr. Kenneth Kaunda District Municipality (Shared Service)

Adequate

Inadequate

Adequate

04


Maquassi Hills LM (Shared Service)

Adequate

Inadequate

Adequate

Ventersdorp LM (Shared Service)

Adequate

Inadequate

Adequate

Tlokwe (Audit Committee)

Adequate

Adequate

Adequate


City of Matlosana LM (Audit Committee)

Adequate

Inadequate

Adequate


Challenges Identified

� Internal Audits Units not adequately resourced, � Shared Audit Committee & Internal Audit Services not effective � MFMA Circular 65 effectiveness and improvement of Audit Committee and

Internal Audit Structure not adopted and implemented by Council.

Interventions by Provincial Departments

� Continuous support and monitoring of Internal Audit Activity and Audit Committee

� Shared Service Model to be implemented.

RECOMMENDATIONS

� Continuously capacitate the Internal Audit Units � Submission of Internal Audit progress reports on quarterly basis for

evaluation.

Shared Services

Subsequent to the adoption of the Shared Services Model by the Provincial Executive Committee and the BBPCC, Municipalities were required to adopt a resolution on the implementation of the Shared Services Model. Requests have been sent to the

106


Municipalities to provide the Departments with the council resolutions. Only the following Municipalities have provided resolutions:

• Maquassi Local Municipality; • Lekwa-Teemane Local Municipality; • Bojanala Platinum District Municipality; • Moses Kotane Local Municipality. Three Districts within the Province had in the past years resolved to go on a Shared Services Model for Internal Audit. These are:

• Dr. Ruth S Mompati District Municipality – All Municipalities are still on Shared Services Model. Some areas of improvement have been identified and recommendations will be considered together with all the Municipalities.

• Dr. Kenneth Kaunda District Municipality – Currently only the District and two local Municipalities are on shared services model (Ventersdorp and Maquassi). Engagements with all the Municipalities in the District will be planned to take place during June 2016.

• Ngaka Modiri Molema District Municipality – All Municipalities were on Shared Services Model until 2012 when Mafikeng, Ramotshere Moiloa and Ratlou pulled out of Shared Services arrangement. Initial engagements with the Internal Auditors from all Municipalities which have Internal Audit functions, except Ratlou, have been engaged

The following are some of the high level challenges that could adversely affect the successful implementation of the shared services in internal audit and risk management:

• Lack of buy-in from relevant stakeholders; • Inadequate resources to provide services to all Municipalities in a district; • Resistance to change (current internal audit and risk management staff); • Source of funding for the implementation of the Shared Services Model.

The following are some of the proposed actions to be taken to address the aforementioned:

• Continuous engagement with all affected stakeholders (Internal Auditors, Municipal Managers, Audit and Risk Committee members);

• Establishment of a district governance and reporting structure for Internal Audit;

• Skills audit and competencies assessment; • Change management programme; • Memorandum of Understanding (between District and Local Municipalities);

107


• Service Level Agreements (between District and Local Municipalities); and • Monitoring and reporting on implementation of shared services model.

The following progress has been made to date:

Internal Auditors of all Municipalities in Ngaka Modiri Molema District, Bojanala Platinum District and Dr Kenneth Kaunda District Municipalities have been engaged to discuss the Shared Services Model and get their buy-in. Dr Ruth Segomotsi Mompati District Municipality, which is at an advanced stage of implementing shared services, will be engaged in due course.

The following are some the key concerns raised during the engagements with the internal auditors from Ngaka Modiri Molema District Municipality, Bojanala Platinum District Municipality and Dr Kenneth Kaunda District Municipality:

• Source of funding for the implementation of shared services; • Salary level disparities of internal auditors at the same level within the

District; • Conducting audits are Municipalities that are in financial distress has proven

to be difficult (no funding to cover accommodation and travelling). • It has also been generally noted from the two districts that have been

engaged that the internal auditors are keen and willing to be part of the shared services.

108


7 Municipal Disaster Management

Purpose

To provide performance of Municipalities on Disaster Management for 2015/16 financial year in compliance with chapter five (5) of the Disaster Management Act. 2002 (Act No 57 of 2002) as amended as well as Municipal Disaster Management Policy Framewor.k

Background

� The Department of Local Government and Human Settlements through the Provincial Disaster Management Centre is responsible for the facilitation and coordination of the implementation of Disaster Management Legislation and Municipal Disaster Management Policy Framework

� The successful facilitation and coordination requires the Department to specifically focus on the local sphere of Government (Chapter five of the Disaster Management Act)

� The Municipal Disaster Management Policy Framework outlines the four (4) Key Performance Areas (KPA’s) and three (3) Enablers: KPA’s Integrated Institutional Capacity for Disaster Management, Hazard and Vulnerability Assessments, Disaster Risk Reduction and Disaster Response and Recovery. Enablers: Information Management and Communication, Education, Training, Public Awareness, Research and Funding.

Progress The progress of performance of Municipalities is indicated below:

� Section 42 requires each requires each district to establish and implement a Disaster Management Policy Framework. Municipal Disaster Management Policy Frameworks have been developed and are being implemented in the following district including its locals:

� Ngaka Modiri Molema District Municipality � Dr Ruth Segomotsi Mompati District Municipality � Dr Kenneth Kaunda District Municipality � Bojanala Platinum District Municipality

The Municipal DM Policy Frameworks have been adopted by respective councils. In terms of DM Legislation, the Local Municipalities are not required to establish policy frameworks for disaster management as they will implement District DM Policy Frameworks

� Section 43 requires each district to establish and maintain Disaster Management Centres in consultation with Local Municipalities. The District Disaster Management Centre have been established in Dr Kenneth Kaunda, Ngaka Modiri Molema, Bojanala Platinum and Dr Ruth Segomotsi Mompati District Municipalities. The Department has allocated financial support to Ngaka Modiri Molema to establish a permanent DM Centre.

109


The following Local Municipalities have established satellite disaster offices/ nodal points: Rustenburg, Madibeng, Moretele, Naledi, Mahikeng, Tlokwe, Matlosana and Moses Kotane Local Municipalities. The Disaster Management Function in the following Local Municipalities are carried out by their respective districts Maquassihills LM: Dr KKDM Ventersdorp LM: Tlokwe NW 405 Mamusa, Lekwa-Teemane LM’s: Dr RSM DM Kgetleng LM: BPDM Tswaing, Ratlou, Ramotshere-Moiloa and Ditsobotla: NMMDM

7.1 Municipal Heads of Disaster Management Centres (Section 45 of the DM Act)

All district Municipalities have appointed heads of Disaster Management Centre and the following Local Municipalities have appointed disaster management coordinators viz: Rustenburg, Madibeng, Moses Kotane, Tlokwe, Matlosana, Mahikeng, Greater Taung and Naledi. Tswaing, Ratlou, Ramotshere-Moiloa, Mamusa, Kagisano-Molopo, Lekwa-Teemane and Maquassi Hills are serviced by District Disaster Management Centres.

� Assistance to the National and Provincial Disaster Management Centres (Section 46 All Municipalities in Bokone Bophirima work closely with the Provincial as well as the National Disaster Management Centres. Due to lack of capacity, commitment and financial support in the Province. There is poor or weak institutional capacity for disaster management within some Municipalities in the Province. The Provincial Disaster Management Centre is currently focusing on building capacity as Municipalities are at the coalface of service delivery.

� Disaster Prevention and Mitigation (Section 47) The Municipal DM Centres are playing a pivotal role in facilitating and coordinating disaster prevention and mitigation, awareness campaign and these includes:

Water and Sanitation Challenges Ngaka Modiri Molema District

The water and sanitation problems in the Province persisted throughout 2015/16 aggravated by drought disaster and poor infrastructure maintenance. The PDMC coordinated relevant role-players in order to develop measures to address the water and sanitation challenges in Ngaka Modiri Molema with specific focus on Ramotshere Moiloa Local Municipality.

The Municipality has been a subject on concern regarding water and

sanitation and was even investigated by the public Protector. The PDMC made a presentation to PICOCO and EXCO to seek intervention and the problem is

110


currently being addressed. Inspection in loco was conducted on 29 March 2016 at Ramotshere Moiloa Local Municipality where vulnerability assessment was conducted and possible risks were identified.

7.2 Establishment of Municipal Disaster Management Advisory Forums (Section 51 of the DM Act)

Ngaka Modiri Molema, Bojanala Platinum and Dr Kenneth Kaunda Disaster Management Centres have established disaster management advisory forums. The for a meets on quarterly basis. Participation by municipal Departments and sector Departments on these forums is still a challenge. The Dr RSM advisory forum is partially functional, however the Provincial Disaster Management Centre has engaged municipal senior managers to support and fully participate on disaster management advisory forums meetings. The Provincial Disaster Management Centre supported the following Municipalities to established disaster management structures/ consultative forums: Rustenburg, Madibeng, Moretele, Tlokwe, Tswaing, Ditsobotla, Ramotshere Moiloa, Mamusa and Kagisano-Molopo. The challenges expressed above also apply to the Local Disaster Management Centres/Satellite

� Annual Reports (Section 50)

All district disaster management centres have produced annual reports and this forms part of the Municipality’s annual reports. The Provincial Disaster Management Centre supported Municipalities to develop disaster management annual reports as per legislative requirements

� Preparations of DM Plans by Municipal Departments (Section 52 of the DM Act)

With the support from the Provincial Disaster Management Centre, all 23 Municipalities in Bokone Bophirima have developed the DM Plans and copies are kept at the PDMC. The PDMC has assessed and evaluated al disaster management plans and they were also supported in adapting them to the current realities within their respective areas. Municipal DM Plans are not addressing developmental issues and the PDMC is currently addressing the problem.

� Monitoring and Evaluation (Section 48)

Municipal DM Centres are still lacking in monitoring entities of Departments due to a number of factors: lack of leadership, misconception of the functions of the DM Centres.

111


7.3 Municipalities affected by disaster incidents

Municipality Area & Date Incident type Impact/Damage Intervention

Ngaka Modiri Molema District Municipality

Ditsobotla LM Lichtenburg 03-04/09/2015

Windstorm Floods

Ackermans Clothing store in Lichtenburg flooded.

Woolworths Clothing store flooded and roof blown away.

1 house in Lichtenburg flooded.

Lichtenburg Mall flooded.

Houses damaged in Blyderville.

Taletso College in Lichtenburg: roofs of parking were blown away and the College’s cars damaged, Agrics tunnel and Broiler House for the chickens were also damaged.

The Disaster Management team comprising of PDMC, NMMDM and Distobotla LM conducted rapid impact and needs assessment to determine the effects of the damages and require relief thereof.

The Mall was closed to mitigate further damages injuries and losses.

The students in the Taletso College was sent home for safety reasons

Itsoseng

19/11/2015

Strong winds

20 houses: roof blown away by wind

One house (No 297 Zone 3) is not habitable due to major cracks from the foundation to the roof. No injuries/ fatalities reported

The Municipality conducted impact and needs assessment.

SASSA assisted with Social Relief Distress (SRD)

Shiela Village 19/11/2015

Strong winds 6 houses: roofs blown away No injuries/ fatalities reported

The Municipality conducted impact and needs assessment. SASSA assisted with Social Relief Distress (SRD)

Verdwaal 1

19/11/2015

Strong Winds

One shack completely blown away and inhabitable

No injuries/ fatalities

Victims evacuated to neighbours and relatives. SASSA to provide SRD and Disaster Management

112



reported Centre to provide shanty house.

Verdwaal 2

19/11/2015

Strong Winds 1 shack completely blown away and inhabitable

No injuries/ fatalities reported

Victims evacuated to neighbours and relatives. SASSA to provide SRD and Disaster Management Centre to provide shanty house.

Mahikeng LM Mafikeng

01/10/2015

Service Delivery Protests

Vryburg road blocked with debris during service delivery protest

Political intervention

Road was cleared of debris

Signal Hill

19/11/2015

Strong winds 61 households affected: 51 Shacks completely destroyed and blown away and 10 formal houses roofs partially blown away.


SASSA assisted with Social Relief Distress (SRD) and 100 blankets;

All families evacuated and went to friends and relatives. Local Disaster Management Centre arranged with a local school in case there is a need to accommodate more people. District Disaster Management Centre to provide Shanty houses.

Ramatlabama

31/01/2016

Shack Fire

01 shack burnt down. 5 children died and 1 hospitalised.


Mmabatho

24/02/2016

Fire : North West University

The administration Block


Fire and rescue service responded and extinguished the fire.


Lotlhakane Village (Mafikeng) 07/03/2016

Water shortage Communal Stand Pipes and 6 community tanks dried up.

The Municipality conducted impact and needs assessment. SASSA assisted with Social Relief Distress

113



(SRD)

Ramotshere Moiloa Local Municipality

Mokgola

20/11/2015

Hail storm Houses roofs blown away.



Dinokana Village 15/03/2016

House Fire 1 House burnt down.

The District Disaster Management team conducted impact and needs assessment.

Motswedi Village

01/05/2016

Water shortage Water shortage

1200 plus learners from Motswedi Secondary School

The district Municipality arranged Water provision(tankering) by Sedibeng water

Ratlou LM Kopela Village 01/10/2015


Three schools and a clinic were torched during service delivery protest, residents were demanding roads, water and electricity

The Department of Education and Sport Development provided interim accommodation for learners.

Kraaipan

20/11/2015

Hail storm 3 houses’ roofs blown away by wind storm. Houses habitable.




Mareetsane

20/11/2015

Hail storm 4 houses’ roofs blown away and unstable (inhabitable)


SASSA provided SRD; DDMC provided shanties. Occupants accommodated by friends and relatives.

Masamane

20/11/2015

Hail storm Houses roofs blown away




Setlagole

02/02/2016

House Fire 01 House burnt down.

No injuries/ fatalities


114



reported SASSA assisted with Social Relief Distress (SRD)

Tswaing LM Middleton A, B, C and Atamelang Township

19/11/2015

Heavy thunderstorm

severely affected areas are Middleton A, B, C and Atamelang Township

Middleton A: About 380 households sustained broken window panes including an early learning centre which is also used as the only community structure in the entire village.

Middleton B: A roof of one house is blown away, one shack is completely destroyed and about 460 households sustained broken window panes. An early learning centre and a church also sustained broken window panes. Heavy soil erosion made internal roads unusable.

Middleton C: Roofs of five households were blown away, one house is completely damaged and about 360 households sustained broken window panes. Electrical lines in one street are down.

Atamelang Township: Atamelang Township has 1700 households and most of the house has sustained broken window panes, damaged asbestos

Preliminary assessment was done by ward councillors, Disaster management officials of the Local Municipality, NMMDM and the provincial Disaster Management Centre.

SASSA assisted with social Relief of distress

115



roofs and wet household furniture.

Community structures are affected by hailstorm and sustained damages to their window panes.

Thusanang Old age centre

Mmalebogo Early Learning Centre

Atamelang Health Centre

Phatsima High School

Lillian Lehetla Special School

Manamolela Primary school

Roman Catholoic Church

Atamelang Resource Centre

Atamelang shopping Complex – NWDC

Bojanala Platinum District Municipality

Moretele L M Swartdam Village

16/11/ 2015

Hailstorm / strong wind

The building totally collapsed and electric lines were affected.

Assessment were conducted, by Disaster Unit, Fire services and Department Social Development provided counselling services to the bereaved.

ESKOM attended to the lines affected.

Mogogela (Phomolong Section)

Hailstorm/strong wind

RDP house destroyed by strong winds

(three children were

Assessment were conducted the findings were that the family cannot cope.

116



16/11/ 2015 admitted at Jubilee hospital)

No income, an unemployed Mother of 60 years is newly registered for grant, living with two orphans who are also not getting grants.

Matter was referred to Dept of Social Development and they responded immediately.

11/01/2016 Heavy Rain

5 houses roof blown away.




Rustenburg Rustenburg town

11/01/2016

Heavy Rain 8 houses blown away.




Sondela

29/01/2016

Shack Fire

01 shack burnt down.




Bethanie

29/01/2016

Shack Fire 01 shack burnt down.




Rustenburg

29/01/2016

Shack Fire 01 shack burnt down.




117



Rankelenyane Village

23/02/2016

Heavy rain and storm Incident

Fifty houses roof blown off by heavy storm in ward 39 (Rankelenyane).

Electrical poles broken by heavy storm

One school roof blown off

The Disaster Management teams conducted impact and need assessment.

Social Development: Provided counselling where required

SASSA: Provided disaster relief

The BPD Disaster Management Centre supported with relief activities

Madibeng Segwaelane

09/01/2016

Heavy Rain and Strong Wind

307 houses affected. The Municipality conducted impact and needs assessment.


Wonderkop

09/01/2016

Heavy Rain and Strong Wind

21 Houses affected The Municipality conducted impact and needs assessment.


Rabokala/Oskraal

09/01/2016

Heavy Rain and strong wind.



Oukasie

09/01/2016

Heavy Rain and strong wind



Majakaneng 09/01/2016


03 Houses affected The Municipality conducted impact and needs assessment. SASSA assisted with Social Relief Distress (SRD)

118



Mothotlung 09/01/2016


06 Houses affected The Municipality conducted impact and needs assessment. SASSA assisted with Social Relief Distress (SRD)

Letlhakaneng 09/01/2016


158 houses affected The Municipality conducted impact and needs assessment. SASSA assisted with Social Relief Distress (SRD)

Letlhabile 09/01/2016


11 houses affected The Municipality conducted impact and needs assessment. SASSA assisted with Social Relief Distress (SRD)

Kgetlengrivier L M

Senthumole 08/03/2016

Shack Fire 7 people died on shack fire at Senthomole area at around 12:00 midnight. The deceased are:- Elizabeth Mojake (74 yrs) Stinky Mokale (40yrs) Tokolane Mokale (15 yrs) Refilwe Mokale(11 yrs) Samantha Mokale(12 yrs) Ofentse Mokale(9 yrs) Preciouse Mokale (3 yrs) three people survived the fire.

The District Disaster Management teams conducted impact and need assessment. SASSA assisted with SRD.

Dr. Kenneth Kaunda District Municipality

Matlosana LM

Palmietfontein 01/10/2015

Heavy Rainfall Roof blown off and cracked asbestos walls at pre-school

Matlosana Disaster Management Centre rendered assistance to affected families

05/10/2015 Wind Strom One house roof blown off, One child experience electric shock through touching exposed electricity cable in the same house


119



Jouberton 11/01/2016

Wind Storm

35 houses roof blown away. 2 of which roofs blown away, people’s assets were damaged by water. No injuries/ fatalities reported


Alabama 11/01/2016

Wind storm 02 houses roof blown away.


Kanana 11/01/2016

Wind storm 04 houses roof blown away.


Alabama 13/01/2016

Wind storm 01 house roof blown away.

The Municipality provided 2 x blankets, 2x mattresses while the owner provided alternative shelter.

Ventersdorp LM

11/01/2016 Heavy Rainfall Four shacks were demolished/blown away. One four roomed RDP house’s roof was blown off. Six roomed house was also affected wherein two rooms were affected and the wall was also cracked.

Ventersdorp Disaster Management handed Blankets and Mattresses to the affected families. SASSA conducted the assessment to determine the needs to the affected families. Affected families are re-building their houses.

Potchefstroom Road 05/10/2015

Fire Two horse and trailer trucks were burned in Ventersdorp on Potchefstroom road. 02 Drivers for the trucks experienced third degree burns.

Disaster Management Ventersdorp responded to the incident and Ambulance services were contacted to attend to the drivers.

Tshing ext 2 11/01/2016

Wind storm 01 shack roof was blown away.

The Municipality conducted impact and needs assessment. SASSA assisted with Social Relief Distress

120



(SRD)

Tlokwe LM Potchefstroom 01/10/2015


Unquantified number of Manholes were damaged, Sidewalk pavements were damaged, Shops were looted during the march, Advertising boards and waste bins were also damaged,

EMRS provided those people that were injured received treatment and released to go..

Ikageng ext 7 11/01/2016

Windstorm 01 shack burnt down The Municipality conducted impact and needs assessment. SASSA assisted with Social Relief Distress (SRD)

Dr. K. Kaunda DM

Doringkop Area 14/03/2016

Water shortage Boreholes not functional

District Municipality provided tinkering services.

14/03/2016 Water shortage The whole community affected.

District Municipality provided tinkering services.

Dr. Ruth Segomotsi Mompati District Municipality

Greater Taung LM

06/10/2015 Wind Storm Roofs for the two houses in Ward 26 were blown off

SASSA provided the affected families with Blankets and food parcels.

Kammeelputs Mmamutlwa Gataote Thuta ya Tau Losasaneng Kgomotso villages 01/10/2015

wind storm Twenty four (24) RDP houses and electrical distribution network damaged

SASSA profiled the affected families Department of Local Government and Human Settlement to assist with assessment of damaged RDP houses Eskom to repaired damaged electrical infrastructure

Lekwa-Teemane LM

Coverdale 5th to 9th/10/ 2015.

Wind Storm 01 Mini Store’s roofs were blown off/damaged due to windstorm during the week of 5th to 9th October 2015.


121



Wind Storm Fifteen (15) RDP houses and electrical distribution network damaged by wind storm

SASSA profiled the affected families Department of Local Government and Human Settlement to assist with assessment of damaged RDP houses Eskom to repair damaged electrical infrastructure Dr RSM is rendering assistance to affected families

7.4 Public Advocacy and Awareness Campaigns

Participatory community based awareness campaigns were conducted in high risk areas in several Municipalities as shown in Tables.

MUNICIPALITY TYPE OF AWARENESS

PLACE CONDUCTED DATE

NMMDM 30 women trained on first aid (level one)

Madiba –aga- Molema and Mantsha villages (Mahikeng Local Municipality)

June 2015

BPDM Multihazards (Structural and Veld fires, drought, flood, theft of Eskom cables

Kameelboom Community Hall (Moses Kotane L.M)

May 2015

Drought, forest and veld fires

Dan house (Moretele L.M)

23 June 2015

DR KKDM Winter Awareness Campaign

Maquassihills L.M 02 May 2015

Community based risk assessment

Ventersdorp L.M 08 -09 May 2015


Tigane Ext 6 Baipel 16 May 2015


Tlokwe L.M 23 May 2015

DR KKDM Symposium: UN IDDR Ventersdorp L.M 18 November 2015 BPDM Road Safety and

Railway Awareness Campaign

Moretele LM 16 November 2015

All Conducted Risk and Boarding and Special September to

122


MUNICIPALITY TYPE OF AWARENESS

PLACE CONDUCTED DATE

MUNICIPALITIES Vulnerability Assessments in special and boarding schools

Schools in the Province November 2015

DR KKDM School safety (basic fire fighting, evacuation plan and exercise simultaions

Boineelo Primary (Maquassihill L.M)

11-12 February 2016

School safety (basic fire fighting, evacuation plan and exercise simultaions

16-17 February 2016

DR RSM Drought and water shortage

Bonabona and Bray(Kagisano-Molopo)

14-15 March 2016

Drought, water shortage, Cholera and Malaria

Ward 4 (Kagisano-Molopo L.M

30 March 2016

NMM Multi-hazards: Drought, water shortage, structural and veld fires

Logageng (RatlouL.M) 19 March 2016

BPDM Drought, Water conservation, structural and veld fires

Moses Koatene L.M 30 March 2016

Bees conservation, control and community safety

Voenteen (Moretele L.M) 17 February 2016

7.5 Declared Disaster: Classified and their effects (Section 40 and 41 of the DM Act)

Currently the declared disaster in the Province is the Drought disaster declared in May 2015. The PDMC together with relevant stakeholders has been monitoring the situation and intervening accordingly.

Municipal Financial Support by the Department to Municipalities 2015/16

� Ngaka Modiri Molema District Municipality R 725 000.00 � Dr Ruth Segomotsi Mompati District Municipality R 725 000.00 � Bojanala Platinum District Municipality R 725 000.00 � Dr Kenneth Kaunda District Municipality R 725 000.00

Disaster Management Event

123


Commemoration of the 2015 United Nations International Day for Disaster Risk Reduction (UN/IDDR)

The North West Province commemorated the United Nations International Day for Disaster Risk Reduction (UN/IDDR) on the 18 November 2015 under the theme “Indigenous knowledge and disasters”. The event was hosted by Dr. Kenneth Kaunda District Municipality in Ventersdorp and thousand senior citizens were reached.

Various stakeholders attended the event namely; PDMC, Political and administrative leadership Ventersdorp and Dr. Kenneth Kaunda District Municipality, Bojanala Platinum District Municipality, Tlokwe Local Municipality, Matlosana Local Municipality, University of the North West Mahikeng Campus, Sector Departments and community members.

The key resolutions of the event were as follows;

� Indigenous knowledge should be integrated during disaster management planning.

� A task team was established to further explore integration of Indigenous knowledge into disaster management

7.6 Summary of disaster performance

Municipality: BPDM DM

HoC/ DM Coordinator

Advisory Forum/ Consultative Forum

DM Plan DM Centre

Personnel

Priority: 03 Municipality that are doing well

Bojanala DM Yes Yes- Yes (L1) Yes 12 Priority: 02 Municipalities that have potential to do well

Madibeng LM Yes Yes Yes (L1) Yes 03 Moretele LM Yes Yes District’s Satellit

e 02

Rustenburg LM Yes Yes District’s Yes 03 Priority: 01 Municipalities that are not doing well

Moses Kotane LM Yes No District’s No 02 Kgetleng Rivier LM Yes No District’s No 01 Municipality: Dr RSM DM

HoC/ DM Coordinator

Advisory Forum/ Consultative Forum

DM Plan DM Centre

Personnel

Priority: 01 Municipalities that are not doing well

Dr RSM DM Yes No Yes Yes 07 Greater Taung LM No No District’s Satellit

e 01

Kagisano-Molopo LM No No District’s No 00 Lekwa Teemane LM No Yes District’s No 00 Mamusa LM No No District’s Satellit

e 00

124


Naledi LM Yes No Yes No 02 Municipality: Dr KK DM

HoC Advisory Forum/ Consultative Forum

DM Plan DM Centre

Personnel

Priority: 03 Municipality that are doing well

Dr. KK DM Yes Yes Yes Yes 08 Priority: 02 Municipalities that have potential to do well

Tlokwe LM Yes No Yes Yes 02 Matlosana LM Yes Yes Yes Satellit

e 02

Priority: 01 Municipalities that are not doing well

Maquassi-Hills LM Yes No District’s Satellite

01

Ventersdorp LM No No District’s No 00 Municipality: NMM DM

HoC Advisory Forum/ Consultative Forum

DM Plan DM Centre

Personnel

Priority: 02 Municipalities that have potential to do well

NMM DM Yes Yes Yes (L2) Yes 04 Mahikeng LM Yes Yes Yes Yes 02 Priority: 01 Municipalities that are not doing well

Ditsobotla LM No Yes Yes No 03 Ramotshere-Moiloa LM

No Yes Yes No 03

Ratlou LM No Yes Yes No 03 Tswaing LM No Yes Yes No 02

Supported provided

The Department supported the following municipalities: Matlosana, Kgetleng, Moses Kotane, Moretele and Ventersdorp with fire-fighting vehicles and equipment with the total amount of R10.1 Million Rand.This support resulted in effective and efficient response to emergency situations in Bokone Bophirima.

Challenges (overall challenges encountered in 2015/16)

The Provincial Disaster Management Centre experienced challenges with regard to the effective disaster management within the Province which is caused by the following: � Poor reporting system in Municipalities which resulted in inaccurate assessment

which resulted in delay in obtaining the necessary assistance. � Shortage of capacity at districts and local disaster management centres. � Inadequate financial support for pro-active and re-active disaster management at

Provincial and Municipal level. � Lack of commitment from municipal Departments to comply with disaster

management legislation and policies.

125


Recommendation

� Given the limited resources the Department will continuously monitor and support Municipalities to comply with Disaster Management Act. 2002 (Act No 57 of 2002).

� Support Mahikeng, Tswaing, Naledi and Greater Taung Local Municipalities with fire fighting vehicles.

� Put measures in place to ensure that resident in drought stricken areas are not adversely affected.

� Conduct Drought Mitigation & Relief awareness campaigns.

8 Overall Underperforming Municipalities

Intervention

1. Facilitate the inauguration of new councillors 2. Council, MPAC and ward committees induction 3. Develop ward improvement reporting 4. Support with development of Integrated Development Plans (IDPs) 5. Launch rates & taxes payment campaign 6. Fast track water and sanitation projects 7. Support Municipalities with the compilation of valuation rolls and maintenance

and promulgation of rates tariffs 8. Determine the root causes of the regression and negative audit opinion 9. Develop intervention plans with an intention to address weakness in different

Municipalities. 10. Assess the capability of PMU units within the technical departments in

municipalities to manage Infrastructure Grant as per MIG policy framework 11. Department in partnership with Cogta, Department Water and Sanitation and

SALGA to conduct an assessment for water and sanitation function in Dr Ruth Segomutsi Mompati and Ngaka Modiri Molema District Municipality

12. Engage Municipalities to develop and implement revenue enhancement strategies.

13. Monitor and support functionality of municipal public account committees (MPAC)

Not doing well Potential to do well

� Lekwa-Teemane LM � Ventersdorp LM � Tswaing LM � Kgetleng Rivier LM

� Mahikeng LM � Ramotshere Moiloa LM � Ditsobotla LM � Mamusa LM � Maquassi Hills LM � Ngaka Modiri Molema DM

126


14. Support Municipalities with LED strategies 15. Coordinate IGR disaster management advisory forum 16. Assesses compliance with Sections 53 of the disaster management Act. 17. Drought Mitigation & Relief awareness campaigns 18. Department in partnership with FEED to initiate operation audit rooms 19. strengthen municipal audit committee and internal audit structure 20. Launch Moses Kotane Municipal Performance Excellence Awards to

encourage and recognize municipal good performance.

127

DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS 128

1

Date post:	14-Jul-2018
Category:	Documents
Upload:	vukhanh
View:	258 times
Download:	1 times

DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS MSA … · department of local government &...

Documents