DATE: 24 MAY 2016

1. MADIBENG LOCAL MUNICIPALITYSELECT COMMITTEE ON COGTASECTION 139 (1)(b) OF THE CONSTITUTION INTERVENTION PROGRESS REPORT DATE: 24 MAY 2016

2. Outline • Background • Summary of mandate • Challenges • Achievements • Recommendations

3. BACGROUND The North West Province (NWP) Executive Committee (EXCO) on the 23 March 2015, resolved to invoke section 139[1] [b] of the constitution on Water and Sanitation service provision due to: • poor water and sanitation service provision which resulted in frequent water interruptions because of infrastructure failures • poor water quality • uneven provision of services and poor operation and maintenance of water infrastructures which resulted in service delivery protests in areas such as Majakaneng, Letlhabile, Jericho and Mmakau.

4. SUMMARY OF THE MANDATE • Magalies water has been directed by the Minister of Water and Sanitation to support Madibeng Local Municipality to address bulk water and sanitation service challenges and to turn-around the retail business. Purpose of the Intervention: • Sets out the strategy to be adopted by Magalies Water to address challenges in Madibeng Local Municipality with regards to water services. • The approach has been built around the short-term (immediate response), short to medium-term (stabilise bulk supply). • Respond to emergency challenges (so-called Hot-spots including borehole refurbishment and drilling of new boreholes); • Phasing out of water tankering • Assist with revenue enhancement

5. MADIBENG WATER SCHEMES

6. CHALLENGES • Old and dilapidated infrastructure that breaks frequently and cause water shortage which sometimes results in community unrests. Repairs and maintenance costs high. • Infrastructure not well maintained due to limited funding and staff shortage. • Limited and inconsistent cost recovery due to high number of indigent population resulting in low revenue collection. • Illegal water connections on both bulk and reticulation infrastructure. • Non-revenue water or water losses is estimated at above 50%. • Inefficiencies of supporting department within the Municipality. • War on leaks programme not aligned with Municipal resources. • The section is under resourced i.e. Vehicles, tool of trade. • The majority of the bulk meters are non functional and customers are unmetered and most of the existing meters are damaged. • Outdated Water Master plan due to lack of funds.

7. CHALLENGES • Delay in appointment of contractors for capital projects • Poor performance by some contractors and consultants and abandoning of projects due to financial problems • Stoppage of projects by communities demanding subcontracting • Theft and vandalism of water and sanitation infrastructure very high • Delayed handover of Hartebeespoort pump-stations by DWS. This creates uncertainty regarding the responsibility for their operation and maintenance • All four wastewater treatment works refurbished but already in a bad state partly due to backlog maintenance • Inadequate enforcement of By-Laws • Tshwane has requested the municipality to reduce dependency on water supply and come up with an exit strategy

8. CHALLENGES • Creditors are not paid on time • Fruitless and wasteful expenditure is increasing due to interest charged on late payments • Poor revenue collection, not all metered households are billed • Government debts not serviced • High employee related costs • Funds not ring- fenced • Delay in resolving the issue of Brits WTW project stoppage. The project was stopped on the 1stFebruary and this impacts negatively on water supply as it was scheduled to be completed in August 2016 and it would have alleviated the water shortage challenges in areas like Letlhabile, Mothotlung, Mmakau, Maboloka and Modderspruit • Magalies Water as the Implementing Agent delaying in implementing projects, putting the municipality at a risk of losing funding and 20 million has already being taken.

9. ACHIEVEMENTS An assessment was performed and the following areas were identified as hotspots: • Jericho • Maboloka • Mmakau • Letlhabile • Majakaneng • Madidi • Oskraal • Modderspruit • Ward 34 – Madinyane - Makgabetlwane - Letlhakaneng `Other areas that even though were not classified as hotspot but also had water supply problems were: • Ward 32 - Segwaelane - Wonderkop

10. ACHIEVEMENTS

11. ACHIEVEMENTS

12. ACHIEVEMENTS

13. ACHIEVEMENTS Mmakau, Jericho, Majakaneng, Modderspruit no longer fall under hotspots Some parts of Letlhabile like block B, I, F and Vulindlela received water for the first time after more than 5 years and the situation will improve even more after the completion of the current project The operation of the Brits WTW has been optimized and this has resulted in increased production Program of cleaning 23 reservoirs started on the 3rd of May and is scheduled to be completed on the 21st of June 2016. 155 bulk meters audited and R2.5m needed to replace faulty ones

14. Recommendations • Strengthening of the intervention team by deploying a person with financial expertise to assist with • financial management and to spearhead revenue enhancement • Ring fencing of water and sanitation funds • Transfer of PIG agreement from Magalies Water to Madibeng LM for implementation of projects • Water and Sanitation be separated from ITS directorate and be a stand alone division • Assistance with funding of identified hotspots that are not funded • Implement credit control measures on Government, Residential, Farms(small holdings), Business and industrial • properties in order to increase collection rate • Review Credit Control and Debt Collection By-laws in order to add inputs such as implement credit control • measures on pre-paid meters • Implement credit control measures on indigent households by installing prepaid meters • Verification of indigent information to ensure that the information given is accurate and complete • Audit all the meters and apply punitive measures (penalty fees) for tempered meters • Implement flat rate in rural areas where services are offered • Implement complaint management system and source funding to replace faulty meters

15. THANK YOU