1

OUTLINE OF PRESENTATION

1.Purpose of Presentation

2.Departmental Audit Outcomes

3.Overview of Municipalities

4.Status of Municipalities as per Portfolio

Committee’s Focus Areas

5.Challenges

6.Conclusion

2

1. PURPOSE OF PRESENTATION

•To share information on the state of governance in the 32 municipalities of the Northern Cape, with a special focus on the challenges and interventions towards achieving Clean Audits by 2014.

•As requested by the Portfolio Committee, the presentation will cover the following focus areas:- Governance, Financial Management, Service Delivery, Bulk Infrastructure, and Corruption.

3

2. DEPARTMENTAL AUDIT OUTCOMES

Over the last 3 years, Department of Cooperative

Governance, Human Settlements and Traditional Affairs

(COGHSTA) achieved the following audit outcomes:

2011/12 - Unqualified

2010/11 - Qualified •Coghsta was qualified on Assets and Housing Grant due to Municipalities not following Supply Chain Management Processes

2009/10 - Unqualified4

2. DEPARTMENTAL AUDIT OUTCOMES

COGHSTA’s interventions to facilitate a clean audit

within the department for 2012/13 and going forward

towards 2014, involves the following:

1.Implementing an Audit Improvement Plan

2.Jointly with AG, monitor the implementation of

Coghsta’s Audit Improvement Plan

3.Implementing a Risk Management Plan

4.Jointly with AG, monitoring the effective

implementation of COGHSTA’s Internal Controls

5.Full cooperation with the Auditor-General during the

audit process 5

Northern Cape has 5 District Municipalities and 27 Local Municipalities categorised as follows:

Category B1

Local Municipalities with large budgets and secondary cities

Sol Plaatje (Kimberley)

Category B2

Local Municipalities with a large town as a core

//Khara Hais (Upington)

Category B3

Local Municipalities with small towns, with relatively small population and significant proportion of urban population but with no large town as a core

24 other Local Municipalities i.e. Magareng, Phokwane, Dikgatlong, !Kheis, Kai! Garib, Kgatelopele, Tsantsabane, Mier, Ga-Segonyana, Gamagara, Emthanjeni, Kareeberg, Umsobomvu, Siyancuma, Thembelihle, Siyathemba, Ubuntu, Renosterberg, Nama Khoi, Richtersveld, Kamiesberg, Karoo Hoogland, Hantam and Khai-Ma

6

3. OVERVIEW OF NORTHERN CAPE MUNICIPALITIES

Northern Cape has 5 District Municipalities and 27 Local Municipalities categorised as follows:

Category

B4

Local Municipalities which

are mainly rural with

communal tenure and with,

at most, one or two small

towns in their area

Joe Morolong

Category

C1

District Municipalities which

are not water service

authorities

• Francis Baard

• Pixley ka Seme

• Namakwa

• John Taolo Gaetsewe

• Siyanda7

3. OVERVIEW OF NORTHERN CAPE MUNICIPALITIES

4. MUNICIPALITIES IDENTIFIED FOR TARGETED SUPPORT

13 Local Municipalities are receiving targeted support from Northern Cape

COGHSTA and National DCOG with Local Government Turn-Around

Strategy (LGTAS),and 7 of these same municipalities are also receiving

support from the Municipal Infrastructure Support Agency (MISA):

8

Siyathemba Tsantsabane Magareng (MISA)

Gamagara (MISA)

Richtersveld !Kheis Renosterberg (MISA)

Ga-Segonyana (MISA)

Kamiesberg Kgatelopele Khai-Ma (MISA) Joe Morolong (MISA)

Mier (MISA)

John Taolo Gaetsewe District Municipality identified by National Cabinet as one of the 23 Rural Districts requiring support

5. STATUS OF MUNICIPALITIES AS PER PORTFOLIO COMMITTEE’S FOCUS AREAS

5.1 ENHANCING GOOD GOVERNANCEIGR STRUCTURES IN THE PROVINCE:•District IGR Forums:Chaired by Executive Mayors of District Municipalities; Mayors of Local Municipalities part of the District IGR; SALGA Northern Cape, All Regional Directors of Provincial Sector Departments part of District IGRs (Quarterly Meeting): ALL 5 DISTRICTS HAVE FULLY FUNCTIONAL IGRs

•MUN-MEC:Chaired by MEC for Local Government; all Executive Mayors and Mayors and Chairperson of SALGA Northern Cape part of MUN-MEC; Mayors attend with Municipal Managers and CFOs; All provincial sector departments invited to MUN-MEC meetings (Quarterly Meeting)

9

•Premier’s Inter-Governmental Forum:

Chaired by Premier and MEC for Local Government as alternate Chair; All MECs, Chaiperson of SALGA in the Province, Executive Mayors and Mayors, Director General, Provincial HoDs, CEO of SALGA in the Province, Municipal Managers and All National Sector Departments in the Province attend (Quarterly meeting)

10

Public Participation:

Districts Community Development Workers

Frances Baard 77

John Taolo Gaetsewe 49

Namakwa 46

Pixley ka Seme 61

Siyanda

TOTAL

48 281

11

• COMMUNITY DEVELOPMENT WORKERS:

Challenges with CDWs• Tension between CDWs and elected Ward Councillors

as well as Ward Committees due to the fact that ‘some’ CDWs behave as if they are elected public representative, hence they compete with elected Councillors

• Department is in the process of finalising appointment of CDW supervisors per municipalities

• CDW Supervisors to be assisted by Municipal CDW Mentors

12

STATE OF WARD COMMITTEES

• A total number of 5 Ward Committees have not been established in the following municipalities:

- Thembelihe Local Municipality : 2 wards - Karoo Hoogland Local Municipality : 2 wards - Kgatelopele Local Municipality : 1 ward

• Accredited training targeting 870 Ward Committee members was conducted in 12 municipalities funded by the European Union

• Training to other municipalities will follow soon

• Ward Committee members are being paid R1 000 p/m out of pocket expense

13

Ward Committees: MUNICIPALITY NO. OF WARDS FUNCTIONALITY

OUT OF POCKET/POLICY

Sol PlaatjeDikgatlongMagarengPhokwane

31 759

FunctionalFunctionalFunctionalFunctional

Yes, National GuidelineYes, National Guideline Yes, National Guideline

GamagaraGa-SegonyanaJoe Morolong

51315

FunctionalFunctionalFunctional

Yes Yes Review Process by Council

SiyathembaSiyancumaThembelihleRenosterbergKareebergUbuntuUmsobomvuEmthanjeni

46444457

FunctionalFunctional NoFunctional FunctionalFunctional FunctionalFunctional

YesYesNoNoYesYesYesYes

14

WARD COMMITTEES:

MUNICIPALITY NO. OF WARDS FUNCTIONALITY OUT OF POCKET/POLICY

NamaKhoiKamiesbergHantamKaroo HooglandKhai-MaRichtersveld

9454 44

FunctionalNoFunctionalNoFunctionalFunctional

Yes – No policy Yes – No policy Yes – No policy No – No policy in placeYes – Policy in placeYes – No Policy

KgatelopeleTsantsabane//KharaHaisKai GaribKheisMier

4 614944

NoNoFunctionalFunctionalFunctionalFunctional

No – No policyNo – No PolicyNo – No PolicyNo – No PolicyNo – No PolicyNo – No Policy

15

DISTRICTS WARDS ESTABLISHED OUTSTANDING

Frances Baard 52 52 0

John Taolo Gaetsewe

33 33 0

Namakwa 30 28 2 Karoo Hoogland

Pixley ka Seme 38 36 2 Thembelihle

Siyanda 41 40 1 Kgatelopele

WARD COMMITTEES – DISTRICT SUMMARY

Implementation of Municipal Turn Around Strategies

• All Northern Cape Municipalities have developed individual MTAS

• Municipal IDPs, Budgets and SDBIPs were integrated and adopted by all 32 municipalities

• Implementation of the IDP went hand-in-hand with ‘hands on support and Rapid Response’ support processes and leveraging of stakeholder support and reporting and monitoring;

• Municipalities report to District IGRs and MUN-MECs on the progress made regarding implementation of MTAS.

17

Section 139 Interventions:

•Since 1999 the Northern Cape Provincial Executive Council never invoked section 139

•The approach adopted by the Provincial Government is to provide support to the municipalities in their respective challenges they are encountering

18

5.2 FINANCIAL MANAGEMENTMunicipal Public Accounts Committees [MPACs]•31 of the 32 municipalities in the province have established MPACs: Khai-Ma LM has not yet established MPAC as it consists of 7 Councillors, 4 of these Councillors serve as Chairpersons in other committees excluding the Mayor. MEC has advised the Municipality to discuss the possible shared MPAC with Namakwa District Municipality •Although Karoo Hoogland LM has MPAC, it has not yet submitted Council Resolution to MEC•The Association of Public Accounts Committees (APAC), together with its strategic partners: Auditor General South Africa (AGSA), National Treasury (NT), Department of Cooperative Governance (DCoG) and SALGA with the Provincial Legislature, conducted training for all MPAC members on 16 – 18 April 2012 and 24 - 26 April 2012 respectively

19

Municipal Public Accounts Committees [MPACs]No Municipality MPACs Date MPAC

establishedMembership composition

Party affiliation of MPAC Chairperson

1 Frances Baard District Yes 3 October 2011 8 ANC

2 Sol Plaatje Yes June 2011 6 ANC3 Dikgatlong Yes 11 November 2011 3 ANC4 Magareng Yes 9 November 2011 4 ANC5 Phokwane Yes 28 November 2011 9 ANC6 John Taolo Gaetsewe District Yes 30 November 2011 6 ANC

7 Ga Segonyane Yes 29 November 2011 9 ANC8 Gamagara Yes 21 November 2011 5 ANC9 Joe Morolong Yes 24 November 2011 8 ANC

10 Emthanjeni Yes 2 July 2011 3 ANC11 Pixkey Ka Seme District Yes 31 October 2011 6 DA12 Kareeberg Yes 17 October 2011 3 ANC13 Siyancuma Yes 10 February 2012 5 ANC14 Siyathemba Yes 20 April 2012 3 ANC15 Renosterberg Yes 20 April 2012 4 DA

20

Municipal Public Accounts Committees No Municipality MPACs Date MPAC

establishedMembership composition

Party affiliation of MPAC Chairperson

16 Thembelihle Yes 16 February 2012 5 COPE17 Ubuntu Yes 30 March 2012 4 ANC18 Umsobomvu Yes 20 June 2012 5 COPE19 Namakwa District Yes 24 November 11 3 ANC20 Hantam Yes 1 December 2011 3 DA21 Kamiesberg Yes 29 May 2012 4 ANC22 Karoo Hoogland No Council Resolution

23 Khai – Ma No

24 Nama Khoi Yes 15 November 11 7 DA25 Richtersveld Yes 1 November 11 4 ANC26 Siyanda District Yes 6 December 2011 9 ANC27 Kai !Garib Yes 29 February 2012 5 ANC28 Khara Hais Yes 12 February 2012 9 ANC29 !Kheis Yes 28 November 11 5 ANC30 Kgatelopele Yes 22 May 2012 3 ANC31 Mier Yes 23 January 2012 3 ANC32 Tsantsabane Yes 17 October 11 5 ANC

21

MUNICIPAL AUDIT OUTCOMES

No Municipality 2010/11 2009/10 2008/091 Dikgatlong Disclaimer Disclaimer Disclaimer2 Frances Baard District Qualified Financially unqualified

with no mattersFinancially unqualified with no matters

3 Magareng Disclaimer Disclaimer Disclaimer4 Phokwane Disclaimer Disclaimer Disclaimer5 Sol Plaatjie Qualified Disclaimer Disclaimer6 Gamagara Financially unqualified with

mattersFinancially unqualified with matters

Qualified

7 Ga – Segonyana Disclaimer Disclaimer Disclaimer8 Joe Morolong Disclaimer Disclaimer Disclaimer9 John Taolo Gaetsewe

DistrictQualified Qualified Financially unqualified

with matters

10 Hantam Qualified Financially unqualified with matters

Qualified

11 Kamiesberg Disclaimer Disclaimer Disclaimer12 Karoo Hoogland Qualified Qualified Disclaimer13 Khai – Ma Financially unqualified with

mattersFinancially unqualified with matters

Financially unqualified with matters

14 Nama Khoi Disclaimer Disclaimer Disclaimer15 Namakwa District Financially unqualified with

mattersFinancially unqualified with matters

Financially unqualified with matters 22

MUNICIPAL AUDIT OUTCOMES

No Municipality 2010/11 2009/10 2008/0916 Richtersveld Financially unqualified with matters Financially unqualified

with mattersFinancially unqualified with matters

17 Emthanjeni Qualified Disclaimer Disclaimer18 Kareeberg Financially unqualified with matters Financially unqualified

with mattersFinancially unqualified with no matters

19 Pixley Ka Seme District

Financially unqualified with matters Qualified Qualified

20 Renosterberg AFS outstanding Disclaimer Disclaimer21 Siyancuma Disclaimer Disclaimer Disclaimer22 Siyathemba Disclaimer Disclaimer Disclaimer23 Thembelihle Disclaimer Disclaimer Disclaimer24 Ubuntu Disclaimer Qualified Disclaimer25 Umsobomvu Disclaimer Qualified Disclaimer26 Kai! Garib Audit report outstanding Disclaimer Disclaimer

27 Kgatelopele Disclaimer Qualified Disclaimer28 Khara Hais nqualified with matters nqualified with matters Qualified29 Kheis Disclaimer Disclaimer Disclaimer30 Mier Disclaimer Disclaimer Disclaimer31 Siyanda District Financially unqualified with matters Qualified Disclaimer

32 Tsantsabane Disclaimer Disclaimer Disclaimer23

SUMMARY : AUDIT OPINIONS

Audit Opinion 2010/11 2009/10 2008/09

Financially unqualified with no matters 0 1 2

Financially unqualified with other matters 8 7 4

Qualified 6 7 4

Disclaimer 16 17 22

Adverse 0 0 0

Total reported on 30 32 32

Audit report outstanding 2 0 0

Total number of municipalities 32 32 32

24

FUNCTIONALITY OF INTERNAL STRUCTURES

• Internal Audit- 27 of the 32 municipalities have internal audit

function in place;- 25 audit reports were verified to assess the

effectiveness of internal audits and it was noted that 14 internal audit did not comply to section 165 of MFMA while 11 complied;

- 7 audit reports of the following municipalities were not verified as they were not available at the time of completion of this report (Renosterberg, Siyancuma, Siyathemba, Kai !Garib, Kgatelopele, Mier, and Tsantsabane)

25

FUNCTIONALITY OF INTERNAL AUDIT

NO MUNICIPALITYINTERNAL AUDIT

FUNCTION COMMENT AUDIT FINDING

1 Dikgatlong Municipality YES FB shared services YES

2 Frances Baard DM YES FB shared services NO

3 Magareng Municipality YES FB shared services YES

4 Phokwane Municipality YES Internal YES

5 Sol Plaatje Municipality YES Internal NO

6 Gamagara Municipality YES JTG shared services YES

7 Ga-Segonyana Municipality YES JTG shared services YES

8 Joe Morolong Municipality YES JTG shared services YES

9 John Toalo Gaetsewe DM YES JTG shared services YES

10 Hantam Municipality YES

Shared Services at Distict level was to commence on 01/07/2011 but the process has not been finalized

NO

11 Kamiesberg Municipality NO YES

12Karoo Hoogland Municipality YES NO

13 Khai-Ma Municipality YES YES

14 Nama Khoi Municipality YES NO

15 Namakwa DM NO YES

16 Richtersveld Municipality NO YES 26

FUNCTIONALITY OF INTERNAL AUDIT

NO MUNICIPALITY INTERNAL AUDIT FUNCTION COMMENT AUDIT FINDING17 Emthanjeni Municipality YES Pixley shared services NO18 Kareeberg Municipality YES Pixley shared services NO19 Pixley Ka Seme DM YES Pixley shared services NO

20 Renosterberg Municipality YES Pixley shared services Audit report outstanding

21 Siyancuma Municipality YES Pixley shared services Audit report not verified

22 Siyathemba Municipality YES Pixley shared services Audit report not verified

23 Thembelihle Municipality YES Pixley shared services YES24 Ubuntu Municipality YES Pixley shared services NO25 Umsobomvu Municipality YES Pixley shared services NO

26 Kai! Garib Municipality YES InternalAudit report outstanding

27 Kgatelopele Municipality YES InternalAudit report not verified

28 //Khara Hais Municipality YES Internal NO29 !Kheis Municipality NO YES

30 Mier Municipality NO Audit report not verified

31 Siyanda DM YES Internal YES32 Tsantsabane Municipality YES Internal Audit rep not verified

27

AUDIT COMMITTEES-27 of the 32 municipalities have audit committees in place

-25 audit reports were verified to assess the effectiveness of audit committees and it was noted that 22 audit committees were not effective during 2010/11 financial year while only 3 were evaluated to be effective by Auditor General.

-7 audit reports were not verified as they were not available at the time of completion of this report.

28

AUDIT COMMITTEES

No Municipality

Functionality of Audit Committees Comment Audit Finding

1 Frances Baard DM YES FB shared services NO2 Dikgatlong Municipality YES FB shared services YES3 Magareng Municipality YES FB shared services YES4 Phokwane Municipality YES Internal YES5 Sol Plaatje Municipality YES Internal NO

6John Toalo Gaetsewe DM YES JTG shared services YES

7Ga-Segonyana Municipality YES JTG shared services YES

8 Gamagara Municipality YES JTG shared services YES

9Joe Morolong Municipality YES JTG shared services YES

10 Namakwa DM YESShared Services at Distict level was to commence on 01/07/2011 but the process has not been finalized

YES

11Richtersveld Municipality NO

YES

12 Nama Khoi Municipality YES YES

13Kamiesberg Municipality NO

YES

14 Hantam Municipality YES YES

15Karoo Hoogland Municipality YES

YES

16 Khai-Ma Municipality YES YES

29

AUDIT COMMITTEES

NO MUNICIPALITYAUDIT COMMITTEE COMMENT AUDIT FINDING

17 Pixley Ka Seme DM YESPixley shared services YES

18 Ubuntu Municipality YESPixley shared services YES

19Umsobomvu Municipality YES Internal YES

20 Emthanjeni Municipality YESPixley shared services YES

21 Kareeberg Municipality YES Internal NO

22Renosterberg Municipality YES Internal

Audit report outstanding

23 Siyathemba Municipality YES InternalAudit report not verified

24 Thembelihle Municipality YESPixley shared services YES

25 Siyancuma Municipality YESPixley shared services

Audit report not verified

26 Siyanda DM YES Internal YES

27 Mier Municipality NO  Audit report not verified

28 //Khara Hais Municipality YES Internal YES29 !Kheis Municipality NO   YES

30Tsantsabane Municipality YES Internal

Audit report not verified

31 Kgatelopele Municipality YES InternalAudit report not verified

32 Kai! Garib Municipality NO  Audit report outstanding

30

AMOUNT OF DEBT OWED TO MUNICIPALITIES BY GOVERNMENT DEPARTMENTS

• The information as at end of June 2012 as published on National Treasury website;

• Government departments owed municipalities in the Northern Cape R151 767 911

31

DEBT OWED TO MUNICIPALITIES Municipality

Debtors

Dikgatlong - Frances Baard District 962,204 Magareng 1,115,522 Phokwane 1,535,754 Sol Plaatjie 121,313,690 Gamagara - Ga - Segonyana 3,172,461 Joe Morolong - John Taolo Gaetsewe 250,372 Hantam 1,107,039 Kamiesberg - Karoo Hoogland 208,081 Khai – Ma 65,273 Nama Khoi 1,730,174 Namakwa District 2,352,770 Richtersveld 36,331 32

DEBT OWED TO MUNICIPALITIES Municipality

Debtors

Emthanjeni 1,518,373 Kareeberg 73,366 Pixley Ka Seme District - Renosterberg - Siyancuma 127,934 Siyathemba 638,453 Thembelihle 1,192,403 Ubuntu 705,656 Umsobomvu 532,118 Kai! Garib 675,844 Kgatelopele - Khara Hais 10,811,685 Kheis - Mier 1,642,408 Siyanda District - Tsantsabane - TOTAL 151,767,911

33

Interventions: Steps Taken to collect Monies:

• The Executive Council has instructed all Provincial Departments to pay municipalities outstanding monies owed to Municipalities. Municipal Managers and Provincial Heads of Departments are busy verifying amounts;

• Debt Collection Committee comprising of CoGHSTA and Provincial Treasury established to deal closely with municipalities to assist and support them to collect money which is due to them;

• Some municipalities are failing to implement their Credit Control and Debt Collection Policies despite being encouraged by the Department to do that;

• Credit control and debt collection Policies of municipalities are being monitored by the Department to ensure adequate implementation;

34

Compliance with Supply Chain Management Processes •Most municipalities were qualified on non-compliance with Supply Chain Management processes;

•During the monitoring of Audit Action Plans, municipalities were advised on how to deal with SCM transactions to avoid irregular and unauthorised expenditures.

•Furthermore, Provincial Treasury: Supply Chain Management is providing hands on support to municipalities

35

5.3 ACCELERATING SERVICE DELIVERY

Status and Pace of Service Delivery in the Northern Cape

•93,6% , which is 177,482 households have access basic level of water i.e. potable water. Access to Free Basic Water is 51 551 Households. All schools and clinics have access to water.;

•79.9% which is 160 000 households have access to basic level of sanitation. Access to Free Basic Sanitation is 51,551 Households. All sanitation backlogs at schools and clinics have been eradicated.

•77.6% , which is 91 232 households have access to basic level of refuse removal.

•82,1%, which is 141 488 Households have access to electricity - of which 48 408 households receive Free Basic Electricity.

36

IDP Analysis Session• The Northern Cape IDP Analysis took place on the 28 - 30 May 2012 and

was meant to arrive at decisions on issues such as municipal budgets and institutional transformation in a consultative, systematic and strategic manner;

• 31 Municipalities submitted their draft IDPs, with the exception of Kamiesberg which did not submit as their draft IDP was not yet approved by council but attended and presented at the engagement/analysis session;

• A pre-analysis was conducted by the Provincial IDP Task Team members to give feedback to the municipalities on their draft IDPs. Municipalities were requested to complete the IDP template and prepare presentations on the 6 KPA’s highlighting their achievements, challenges, interventions and AG’s audit outcomes.

• Municipalities submitted their final adopted IDPs to the MEC on 30 June 2012 37

Some of the more common issues identified by local municipalities were:•Support/attendance by provincial and national sector departments to the IDP Representative Forums and District IGR still a challenge;• Most municipalities do not have the capacity – human and/or capital – to implement their IDPs;•District municipalities (shared services) support to local municipalities is not effective;•Districts and local Municipalities that will ensure that districts plans are aligned with local Municipal IDP’s to address services delivery challenges. Local municipalities will require more funding as most of the DMA areas fall under their jurisdiction.

38

IDPs

• 23 out of the 32 municipalities adopted their final IDPs by the end of May 2012

• Of the 9 that did not approve before end of May 2012, 5 adopted theirs before end of June 2012 (end of the financial year), whilst 3 adopted theirs in the first month (July) of the new financial year and it is only Karoo Hoogland that did not adopt their IDP

39

MONITORING OF IDPS

• The Department coordinates the Provincial IDP Task Team which comprises of all Provincial and National Sector Departments and all important role-players

• Within the Departments itself, the Directorate of Planning and Development monitors implementation of IDPs: 5 Assistant Directors each allocated a District to monitor and report on monthly basis

40

5.4 FACILITATING SUSTAINABLE INFRASTRUCTURE

Availability and Functionality:

•Availability of funding for bulk services still remains a major challenge for the Municipalities in the Northern Cape due to them not generating enough funds to rehabilitate, upgrade renew or extend their existing water and waste water treatment plants and bulk water pipelines which at present are operating beyond their maximum capacity due to expansion of the towns

•Municipalities only apply for funding at National CoGTA through Municipal Infrastructure Grant programme (MIG) and Department of Water Affairs with the Regional Bulk Infrastructure Grant (RBIG) and the Accelerated Community Infrastructure Program (ACIP)

41

FACILITATING SUSTAINABLE INFRASTRUCTURE

• With regard to MIG, the annual allocations that they receive prove to insufficient as they are too small to fund the bulk services that are very expensive and in cases the Municipalities would have to commit their entire MTEF allocations over a number of years to be able to fund those projects 100%. The only other alternative is to apply to DWA for assistance through the RBIG and ACIP

• DWA has budgeted R30,5 million for ACIP projects in the 2011/2012 financial year and projects include 2 water and 3 waste water projects

• 33 projects have been prioritised for the RBIG programme with 11 capital and 10 planning projects being budgeted for the 2012/2013 financial year to the amount of R218,7 m.

42

FACILITATING SUSTAINABLE INFRASTRUCTURE

MIG Funding

• Amount allocated to Northern Cape municipalities during 2009/10 = R335m

• Amount allocated to Northern Cape Municipalities during 2010/11 = R425m

43

WATER BACKLOGS PER DISTRICT:

44

SANITATION BACKLOGS PER DISTRICT:

45

5.5 FIGHTING CORRUPTION

• There has been no proclamations instituted by the Provincial Government;

• Department has assisted all Municipalities in developing Fraud Prevention Policies and is also monitoring implementation thereof;

• The following slides give details of cases of corruption and fraud which were reported to the Department

46

CORRUPTION CASES INVESTIGATED ….

MUNICIPALITY CORRUPTION

TYPE

PREPETRATOR’S

POSITION

MONETARY

VALUE

STATUS OF

INVESTIGATION

OUTCOME FRAUD

PREVENTION

POLICY

FRANCES

BAARD DISTRICT

Theft of petrol Messenger/ Driver +_ R4 000 Finalized Dismissed

Yes

SOL PLAATJE 1. Invoice

Corruption

1. Secretary +_ R 60 000 Commercial

Branch of SAPS

Investigate matter

Pending Yes

1. Issue false

Learners

Licences

1. Traffic Officer +_ R30 000 Commercial

Branch of SAPS

Investigate matter

Case is

currently

proceeding

in criminal

Court

1. Invoice

corruption

General Worker +_ R 30 000 Departmental

Investigated

Outcome of

disciplinary

hearing

awaited

( Pending)

1. Embezzlement Services Station

supervisor

R 25 000 Case was

investigated by

employer

Disciplinary

hearing not

finalized 47

JOHN TAOLO GAETSEWE DISTRICT

Fraud District Management Area- Administrative Officer

Not known Criminal case with SAPS

Employment contract of not renewed

Yes

GA-SE GONYANA LOCAL

Fraud& Theft 5 Chief Traffic

Officers – Traffic

Control

It cannot be

quantified as it

continued over

a period of time

where bribes

were obtained

in favour of

learners and

drivers licenses’

Criminal

case still on,

at Magistrate

Court.

Internal

disciplinary

process over

these traffic

officers

Dismissed but

appealed

case is at

Bargaining

Council

(CCMA)

Yes

48

CORRUPTION CASES ….

SIYATHEMBA Theft Traffic

Department

Clerk Not Known SIU Not

available Yes

EMTHANJENI Theft Creditor

Control/ Clerk

R427579.6

8

Regional

Court

Resigned

&

Sentence

d

Yes

Theft Clerk R1275-00 Disciplinar

y &

Dismisse

d and

resigned

Corruption &

Fraud

Motor

registration

Clerk

- Court Transfer

Theft Cleaner R4129.00 Finalized Sentence

d

NAMAKWA DISTRICT

1. Sub Judicated

CFO Unspecified Sub Judicated

Suspended and resignedCriminal case still pending

Yes

1. Sub-Judicated

Head: Roads Unspecified Sub-Judicated

Resigned,Criminal case still pending

1. Supply Chain

Municipal Manager

Un specified

Completed Resigned, Criminal case still pending

1. Theft Labourer - Completed Dismissed

1. Theft Labourer - Pending Pending

RICHESTVELD Theft &Fraud

Casher R22000.00 Finalized Settlement to resign and payback the stolen money

Not signed

Fraud/Theft Driver R355.20 Finalized Final warning- Lack of evidence

50

NAMA KHOI Theft of cash Perpetrator

unknown.

Incident

occurred in

March 2009

R60.000 Investigatio

n by the

financial

department

Case still open Yes

Allegation

fraud. Individual

pricing and

selling

municipality

movable

assests to

member of

public without

Council

Resolution as

required by

section 14 of

the MFMA

Written

complaint by

two employees

of the

municipality

HOD of

finance &

Acting

Municipality

Manager

R8,400 Outcome of

investigation with

supporting evidence

were submitted by

the Internal audi unit

to the Municipaln

Manager. Audit

Committee and

Council. The Audit

committee

recommeded that

disciplinary action

be taken against the

senior managers in

terms of the SCM

Policy and section

171 & 173 of the

MFMA 51

NAMA KHOI Theft of cash Perpetrator unknown. Incident

occurred in March 2009

R60.000 Investigation by the financial

department

Case still open

Allegation fraud. Individual pricing and selling

municipality movable assests to member of

public without Council Resolution as required by

section 14 of the MFMA

Written complaint by two employees of the

municipality

HOD of finance & Acting

Municipality Manager

R8,400 Outcome of investigation with

supporting evidence were

submitted by the Internal audi

unit to the Municipaln

Manager. Audit Committee

and Council. The Audit

committee recommeded that

disciplinary action be taken

against the senior managers in

terms of the SCM Policy and

section 171 & 173 of the

MFMA

Theft of fuel General worker in the

Technical Department

R60. 000 Disciplinary hearing Employee not

found guilty

Fraud, Pricing and selling of

municipal land to a member

of the public without a council

resolution and far below fair

value as required by section

114(2)(a)&(b) of the MFMA

HOD of Corporate Services

& Acting Municipal

Manager

Estimated

R1,200,000

Disciplinary hearing

and subsequent

dismissal by Council

Arbitration cases

still open

2010/2011 Theft of electrical cable and

switch gear of substations

Member of the public Estimated

R4,000.000

Arrest was made.

Criminal charges

were laid. Case

twice postponed in

magistrate court

Case still open

52

6. CHALLENGES

• The issue of the vast topography occupied by the Province with highly scattered population brought about major challenges in dealing with local government matters;

• Northern Cape municipalities are struggling to recruit suitable senior management personnel to work in municipal spaces;

• Municipalities consistently experience brain drain because they are not attractive as areas to stay and work, they are not able to offer competitive remuneration to skilled personnel;

53

CHALLENGES:

• The equitable share given to municipalities is inadequate to deal with the challenges faced by municipalities;

• The Department is constantly deploying its own personnel to fill in vacancies as those of Municipal Managers in several municipalities;

• The department has limited capacity and budget to sustain interventions implemented in municipalities

• There are municipalities in the Province that are not viable and these require special attention

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7. CONCLUSION

• Spatial realities of the Province are constraining service delivery, human resource capacity, shared services and other matters

• Despite all the challenges, Department and Provincial Government will ensure that municipalities are given the necessary support to ensure good governance and financial viability and sustainability

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