PRESENTATION TO SELECT COMMITTEE ON PUBLIC SERVICES HON.NM MOKOENA MEC OF COGTA 26 MAY 2010

1. PRESENTATION TO SELECT COMMITTEE ON PUBLIC SERVICES HON.NM MOKOENA MEC OF COGTA 26 MAY 2010

2. Minister of COGTA conducted an assessment on the state of municipalities in the country. All 18 Local municipalities and the three districts municipalities in the Province participated in the assessment This assessment followed concerns such as: Protests and on-going negative reports on local governments Concerns by Parliament on state of local governments Grievances raised by communities Allegations of fraud and corruption Slow progress on service delivery Assessments were basically on the following key areas: Governance Financial Management Service Delivery and Infrastructure Local Economic Development and spatial patterns MINISTERIAL TASK TEAM REPORT MAKING LOCAL GOVERNMENT EVERYBODY’S BUSINESS 2

3. FINDINGS • Governance • Ineffective public participation and communication, through ward committees and community development workers (CDW’s); • Lack and poor implementation of Performance Management Systems; • The lack of monitoring systems for implementation of council resolutions has impacted negatively on good governance and the relationship between the council and community; • Council is not able to produce the oversight reports and Section 46 reports; • Dysfunctional municipal IGR structures; • High vacancy rate in most municipality • Financial Management • The Supply Chain Management regulations and policies are not adhered; • Limited revenue base, non implementation of revenue enhancement initiatives contributes towards poor financial viability resulting in grant reliance; • Incorrect data in the billing system contributes to the increasing consumer debt and the inability to collect revenue; • Internal Audit and Risk Management structures are not functional and in others not in existence; • Inefficient and outdated financial management systems; • Municipalities are facing challenges with the implementation of the Municipal Property Rates Act; • Institutionalised irregularities and corruption; MAKING LOCAL GOVERNMENT EVERYBODY’S BUSINESS 3

4. Service Delivery and Infrastructure Insufficient funds to eradicate infrastructure backlogs, Incomplete infrastructure projects e.g. houses, roads, electricity and water; Poor workmanship and material utilised by the contractors affects sustainability of qualitative services; The non-availability of land for township development especially for evicted farm dwellers is impacting negatively on service delivery, Dipaleseng, Govan Mbeki, Poor Spatial Planning and population growth result in overload of basic services eg water, electricity; Lack of alignment between expenditure on MIG funds against actual implementation of projects; Local Economic Development Participation and involvement of key stakeholders in LED initiatives is not embraced by municipalities, for example, Organised business, Traditional Authorities and CBO’s; LED strategies and implementation plans have not been formulated and in municipalities where it exists it is not implemented; The development and implementation of strategic plans by the three spheres of government aimed at stimulating economic development are not coordinated; Though LED units exists in some municipalities, they are not functional due to lack capacity and resources; FINDINGS cont… MAKING LOCAL GOVERNMENT EVERYBODY’S BUSINESS 4

5. STATUS OF MUNICIPALITIES MAKING LOCAL GOVERNMENT EVERYBODY’S BUSINESS 5

6. ADEQUATE CAPACITY TO DELIVER SERVICES MAKING LOCAL GOVERNMENT EVERYBODY’S BUSINESS 6

7. ADEQUATE CAPACITY TO DELIVER SERVICES MAKING LOCAL GOVERNMENT EVERYBODY’S BUSINESS 7

8. TRAINING MAKING LOCAL GOVERNMENT EVERYBODY’S BUSINESS 8

9. MUNICIPAL FINANCIAL VIABILITY AND MANAGEMENT • Grant Dependency • Municipal Systems Improvement Grant (MSIG) • Audit Outcomes • Outstanding Debtors MAKING LOCAL GOVERNMENT EVERYBODY’S BUSINESS 9

10. GRANT DEPENDENCY MAKING LOCAL GOVERNMENT EVERYBODY’S BUSINESS 10

11. AFS – AUDIT OUTCOMES MAKING LOCAL GOVERNMENT EVERYBODY’S BUSINESS 11

12. BASIC SERVICES AND INFRASTRUCTURE • IDP • LED • Municipal Infrastructure Grant (MIG) • Free Basic Services • Backlogs per municipality priority services MAKING LOCAL GOVERNMENT EVERYBODY’S BUSINESS 12

13. LED STATUS IN MUNICIPALITIES EHLANZENI DISTRICT MAKING LOCAL GOVERNMENT EVERYBODY’S BUSINESS 13

14. INTEGRATED DEVELOPMENT PLANNING MAKING LOCAL GOVERNMENT EVERYBODY’S BUSINESS 14

15. MIG EXPENDITURE UP TO MARCH 2010 MAKING LOCAL GOVERNMENT EVERYBODY’S BUSINESS 15

16. MUNICIPAL TURN AROUND STRATEGY • Local Government Summit was convened during February 2010 • Developed and Adopted turn around strategy in line with Local Government 10 point plan. • Assisted municipalities to develop Municipal specific turn around strategy • Strategies adopted and approved by Councils for implementation • Main areas of focus: • Governance • Financial Management • Service Delivery and Infrastructure • Public Participation and Community development • LED, IDP’s and Spatial development. MAKING LOCAL GOVERNMENT EVERYBODY’S BUSINESS 16

17. Improve the quantity and quality of municipal basic services to the people in the areas of access to water, sanitation, electricity, waste management, roads and disaster management. Enhance municipal contribution to job creation and sustainable livelihoods through local economic development( LED). Ensure the development and adoption of reliable and credible IDPs Deepen democracy through a refined ward committee model Build and strengthen the administrative, institutional and financial capabilities of municipalities. Create a single window of coordination for support, monitoring and intervention in municipalities. Uproot fraud, corruption, nepotism and all forms of maladministration affecting local government. Develop a coherent and cohesive system of governance and a more equitable intergovernmental fiscal system Develop and strengthen a politically and administratively stable system of municipalities. Restore the institutional integrity of municipalities. LOCAL GOVERNMENT TEN POINT PLAN MAKING LOCAL GOVERNMENT EVERYBODY’S BUSINESS 17

18. INSTITUTIONAL ARRANGEMENTS • During the LG Summit, clear responsibilities were agreed upon between municipalities and relevant sector departments to ensure smooth implementation • Regular reports will be submitted on progress to IGR structures and Cabinet MAKING LOCAL GOVERNMENT EVERYBODY’S BUSINESS 18

19. SUPPORT PROVIDED NKOMAZI • In July 2009, an amount of R776 922.67 was allocated to drill and rehabilitate boreholes in Nkomazi and Umjindi municipalities. •  In Nkomazi municipality, the following milestones have been achieved: •  At Shiyalongubo, a new electrical pump has been installed as a long term solution to the challenge of the area. The project is 95% complete and it is benefiting 20 households and a population of around 200 people. • At KaMashayani, a new electrical pump has been erected and a water tank and stand installed as a long term solution to the water challenge of that area. The project is 95% complete and stands to benefit 15 households or about 100 people. Eskom electrical connection is still outstanding. • At Louieville 1, an old electrical pump has been refurbished and a new water tank and stand erected as a long term solution to the water challenge in that area. Water samples have been submitted to the laboratory and the quality has been declared fit for human consumption. The project is 100% complete and it is benefitting 50 households and ready for transfer to the municipality. • At Louieville 2, an old electrical pump and pipe work to fill water tankers has been concluded. The project is providing a long term solution to the beneficiaries and is 100% complete. MAKING LOCAL GOVERNMENT EVERYBODY’S BUSINESS 19

20. CHOLERA INTERVENTION The following interventions was done under the cholera intervention programme budget by Department of Water Affairs Description                                                              Quantity •  Rainwater harvesting tanks                           300    Jojo tanks • Boreholes                                                         20 • Package plants • 2x Louisville each plant with a capacity of              0.5Ml/d • 1x Ntunda / Skhwahlane capacity                          2Ml/d • The boreholes and rain water harvesting tanks were installed in various areas within Nkomazi L.M. • There is still another package plant to be installed at Block B with a capacity of 2Ml/d. MAKING LOCAL GOVERNMENT EVERYBODY’S BUSINESS 20

21. HUMAN SETTLEMENTS - NKOMAZI MAKING LOCAL GOVERNMENT EVERYBODY’S BUSINESS 21

22. HUMAN SETTLEMENTS - NKOMAZI MAKING LOCAL GOVERNMENT EVERYBODY’S BUSINESS 22

23. 2010 READINESS • Progress report on 24 ProjectsStatus Quo 24.05.2010 MAKING LOCAL GOVERNMENT EVERYBODY’S BUSINESS 23

24. MAKING LOCAL GOVERNMENT EVERYBODY’S BUSINESS 24

25. PROGRESS TO DATE • Stadium - All infrastructure is complete and two test events successfully held. Stadium to be handed over to FIFA on 26 May, 2010. • Roads – All major road infrastructure now complete and tested. • Transport – Park and Rides tested during “dry run” events. All plans submitted and approved by NDOT. • Fan Park – All infrastructure complete and operator in place. • Training Venues – Two training venues have been identified and refurbished for legacy purposes. Pitches at both venue being nurtured to ensure compliance with FIFA specifications. • Public Viewing Areas – There will be three Government sponsored PVA’s - one in each District and there will be three commercial PVA’s (two by Boxer and one by Xstrata Mine). Additional commercial PVA’s are being explored. • Team Basecamp – The Chilean Team will be based in the Province and their facilities are being readied to FIFA requirements. An additional field has been renovated at Province’s expense, which will also provide legacy post the 2010 event. MAKING LOCAL GOVERNMENT EVERYBODY’S BUSINESS 25

26. PROGRESS TO DATE CONT… • Marketing/Branding/City Beautification – The Host City has been branded. Football Friday and Fly the Flag campaigns are continuing throughout the Province. Road markings being re-done and flora areas spruced up. • Health – Renovations for 2010 have been completed and systems have been tested. • Disaster Management – The Disaster Management Centre has been complete and handed over to the Host City. The Centre was operational for the two test events. • Safety and Security – The Provincial Joint Operations Centre (JOC) is fully operational and functional. Simulation exercises have been held and the JOC was operational in the test events. • Volunteers – All volunteers selected and trained. • International Relations – Province is establishing fan embassies for visiting countries that will be playing at the Mbombela Stadium. MAKING LOCAL GOVERNMENT EVERYBODY’S BUSINESS 26

27. WAY FORWARD • Establish a rapid response unit at the Provincial and District level- create a hands on support (planning, infrastructure, risk management, stakeholder management and financial/ technical management) • Mbombela and Nkomazi to be recipients of the Provincial Financial Turnaround intervention in areas of assets management, SCM review, financial systems, debt collection and revenue enhancement. • Ensuring the implementation of the Water Summit resolutions with respect to water security, infrastructure development and management, quick-wins with respect to drilling and equipping boreholes and implementation of rainwater harvesting measures and curbing water loss. • Support rural economic development through bankable LED projects and resuscitating defunct LED projects including industrial parks MAKING LOCAL GOVERNMENT EVERYBODY’S BUSINESS 27

28. THANK YOU MAKING LOCAL GOVERNMENT EVERYBODY’S BUSINESS 28