Provincial Gazette Extraordinary Buitengewone Provinsiale Koerant

THE PROVINCE OF MPUMALANGA DIE PROVINSIE MPUMALANGA Provincial Gazette Extraordinary Buitengewone Provinsiale Koerant (Registered as a newspaper) (As n nuusblad geregistreer) Vol. NELSPRUIT, 6 JUNE JUNIE 04 No. 4 We all hove the power to prevent RIDS AIDS HELPUNE 0800 0 DEPARTMENT OF HEALTH Prevention is the cure N.B. The Government Printing Works will not be held responsible for the quality of Hard Copies or Electronic Files submitted for publication purposes 4077 A 4

No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 IMPORTANT NOTICE The Government Printing Works will not be held responsible for faxed documents not received due to errors on the fax machine or faxes received which are unclear or incomplete. Please be advised that an OK slip, received from a fax machine, will not be accepted as proof that documents were received by the GPW for printing. If documents are faxed to the GPW it will be the sender s responsibility to phone and confirm that the documents were received in good order. Furthermore the Government Printing Works will also not be held responsible for cancellations and amendments which have not been done on original documents received from clients. No. CONTENTS INHOUD Page No. Gazette No. GENERAL NOTICE 0 Consolidated Annual Municipal Report 009/00... 4

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 GENERAL NOTICE NOTICE 0 OF 04 CONSOLIDATED ANNUAL MUNICIPAL REPORT 009/00

4 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 TABLE OF CONTENTS FOREWORD BY MEC FOR COGTA OVERVIEW 4 CHAPTER : MUNICIPAL TRANSFORMATION AND ORGANISATIONAL DEVELOPMENT 5.. Introduction 6.. Progress 6. Challenges experienced in municipal transformation and organizational development 0.4 Interventions by national and provincial government, SALGA and other government 0 agencies CHAPTER : BASIC SERVICE DELIVERY. Introduction. Progress CHAPTER : LOCAL ECONOMIC DEVELOPMENT 5. Introduction 6. Progress 6. Challenges experienced with LED in the Province.4 Interventions by national and provincial government, SALGA and other government agencies CHAPTER 4: MUNICIPAL FINANCIAL VIABILITY AND MANAGEMENT 4. Introduction 4 4. Progress 5 4.4 Conclusion 68 CHAPTER 5: GOOD GOVERNANCE AND PUBLIC PARTICIPATION 69 agencies CHAPTER 6: CROSSCUTTING INTERVENTIONS 75 6. Disaster Management 84 CHAPTER 7: PERFORMANCE MONITORING, REPORTING & EVALUATION: 88 OUTLOOK 007 Ð0 CONCLUSION 9 GLOSSARY OF TERMS 94

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 5 THE MPUMALANGA PROVINCIAL MAP Capricorn Moponi Watetberg Greater Sethukhune Bo'ir Sedlbe Gert Slbande (Nn Ni? Northern Free Nl ate Uinkibanyaktit Titabo Mpfutsanyane Arnajuba Zululagid Source: Demarcation Board Website

6 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 FOREWORD BY MEC FOR COGTA We have come a long way since our transition eight years ago to a new form of developmental local government with the introduction of integrated municipal planning. The Municipal Integrated Development Plan (IDP) and related performance management processes, which were introduced in 000, serve as the pivotal tool in transforming local government. We all know the great challenges which municipalities face in promoting human rights and meeting human needs, addressing past backlogs and problems caused by apartheid planning and planning for a sustainable future. Everything that a municipality does should be done to impact as much as possible on the social development of an area. In particular, municipalities must be serious about their responsibility to provide services that meet the basic needs of the poor in their communities in a costeffective and affordable manner. The transformation to a developmental local government also requires municipalities to provide leadership to all those who have a role to play in achieving local prosperity. tegrated development planning. It is for this reason that my Department is striving to provide improved local government support to all municipalities. This report therefore not only provides a snapshot of the status of performance of municipalities in the Province, but it also outlines critical areas within municipalities which need to be addressed by municipalities and through continued and renewed support from provincial and national government departments. focus areas of the Five Year Local Government Strategic Agenda adopted by national government in sight into how far we as a province have moved towards achieving the vision and objects of a developmental state. MR M.B. MASUKU MEC: COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS 6/0/0 DATE

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 7 OVERVIEW Section 46 of the Municipal Systems Act (Act No. of 000) requires a municipality to prepare for (b) year; a comparison of the performances referred to in paragraph (a) with targets set for and perform (c) measures taken to improve performanceó. In addition, the Municipal Finance Management Act (Act No. 56 of 00) requires that the municipalityõs annual report (section of MFMA) must include the Annual Performance Report (Section 46 Report). It is implicit that although the Section 46 Report must form part of the Section Annual Report it Very few municipalities prepared an annual performance report on this basis with most municipalities rather opting for an annual report which has elements of the requirements of Section 46 of the MSA scattered within the annual report. It is acknowledged however that although a Section 46 of the As a result it is proving challenging for Provincial Government to correctly target and channel various Departmental support programmes to municipalities as there will be no measured and consolidated base to work from. in information gathering and to establish baselines for measuring onward performance. The aim of the Indicators (as per Regulation 0 of the Municipal Planning and Performance Regulations August 00) but also enable a standardized approach from Government to information gathering and to establishing baselines for measuring onward performance. This approach is not merely geared to information gathering, but more towards information analysis in order to improve performance as well as provincial support programmes. the performance of municipalities and presents comparisons against set targets, the information pro 4

8 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 CHAPTER MUNICIPAL TRANSFORMATION AND ORGANISATIONAL DEVELOPMENT 5

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 9.. Introduction The information within this chapter is intended to illustrate the organizational structure, progress in throughout the municipalities which make up the Mpumalanga province. The Province consists perspective of the district and provide a provincial picture. The comparative information indicated within the three districts and the Mpumalanga province as a whole... Progress allocated powers and functions. committees. tees except for Steve Tswete and Thaba Chweu local municipalities... Filling of Section 57 posts The current number of municipal senior manager posts within the Province is 4. Currently, 06 of Municipality Comparative analyses of 008/009 and 009/00 fi i l Total No. of Senior Section 57 Managers No. filled in 008/009 Percentage % No. filled in 009/00 Percentage % Gert Sibande 9.9% 87.8% 49 46/49 4/49 District Nkangala 8.8% 7% 7 /7 7/7 District Ehlanzeni 97.4% 94.7% 8 7/4 6/8 District Total 4 4/4 9.9% 06/4 85.5% 6

0 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 Municipality Municipal Manager Chief Financial Manager Manager Technical Services Manager Corporate Services Manager Public Safety / Social Service Comment GERT SIBANDE DISTRICT Gert Sibande Albert Luthuli Msukaligwa Mkhondo Pixley ka Seme Lekwa Dipaleseng Govan Mbeki NKANGALA DISTRICT Nkangala Victor Khanye Emalahleni Steve Tshwete Emakhazeni Thembisile Hani Dr JS Moroka EHLANZENI DISTRICT Ehlanzeni Thaba Chweu Mbombela Umjindi Nkomazi Bushbuckridge Of the 48 senior Section 57 manager posts, six are vacant. The vacant posts are in: Msukaligwa LM (Municipal Manager and Director: Corporate Services), Lekwa LM (Municipal Manager and CFO), Mkhondo LM (CFO), Pixley Ka Seme LM (Municipal Manager). All posts were advertised with placement still to be made. Of the 7 senior Section 57 manager posts, ten are vacant. The vacant posts are in: Nkangala DM ( CFO and Manager: Social Services), Victor Khanye LM (Municipal Manager), Emalahleni LM (Director: Corporate Services, Director: Infrastructure and Basic Services and Public Safety ), Steve Tshwete LM (Manager: Corporate Services), Emakhazeni LM (CFO and Managers Corporate Services), Thembisile LM (CFO and PMU Manager) and Dr JS Moroka LM ( Manager: Community Services) Of the 8 senior Section 57 manager posts, two are vacant. The vacant posts are in: Umjindi LM (Director: Community Services and Director: Corporate Services). 7

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 The information received from municipalities within the three districts indicates that, there is increase Councils and some were still within the required timeframes as per the performance regulations, regulating performance of municipal managers and managers accountable to municipal managers... Municipal Policies Municipality Recruitment Policy Employment Equity Workplace Skills Plan Performance Management System Bank & Investment Policy GERT SIBANDE DISTRICT Gert Sibande Albert Luthuli x x Msukaligwa x Mkhondo Pixley ka Seme Lekwa x Dipaleseng Govan Mbeki NKANGALA DISTRICT Nkangala Victor Khanye Emalahleni Steve Tshwete Emakhazeni Thembisile Hani x x Dr JS Moroka EHLANZENI DISTRICT Ehlanzeni Thaba Chweu x x Mbombela Umjindi Nkomazi Bushbuckridge 8

No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04.. Employment Equity The total number of senior manager posts in the Province at municipal level is 4 of which 06 posts and 6% by males. The implementation of the Employment Equity Act is taking place at a slow pace (Also to include the number of councillors and youth)...4 Municipal Budget spent on implementing workplace skills plan All municipalities are paying levies and receive rebates for the implementation of workplace skills plans. Municipalities have also made provision in their budgets for internal capacity building that is in line with their workplace skills plan although amounts budgeted vary from one municipality to the plementing...5 Performance Management Systems They are fourteen municipalities in the Province that have developed Performance Management Framework. not signed. This was as a result of suspensions in municipalities, unsigned Service Delivery and Budget Implementation Plans and others were still within the timeframe as stipulated within the performance regulations regulating municipal managers and managers accountable to municipal managers. All municipalities in the province use audit committees to audit their performance. Seven municipalities in Nkangala District were using shared committee, In Gert Sibande District all municipalities are also using a shared committee and in Ehlanzeni District all municipalities have their audit committees. What is lacking: 9

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4. Challenges experienced in municipal transformation and organizational development level. on the Employment Equity Act..4 Interventions by national and provincial government, SALGA and other government agencies to provide assist on their administrative capacity and on service delivery. 0

4 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 CHAPTER BASIC SERVICE DELIVERY

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 5. Introduction The province has performed reasonable well in providing basic services to its citizens through municipal provincial district and municipal services. The report will cover progress made by municipalities to achieve some of the targets and also the challenges. The achievements have been realised through the intensive involvement of sector department during have improved in grant spending and implementation of projects in their space, there is also an improvement in the provision of basic services and the number of indigents receiving free basic services. It must be noted that whilst there is improvement in provision of services in municipalities there are challenges which have a negative effect on achieving some of the targets, these include amongst others availability of operation and maintenance plans for the sustainability of some critical services, insuf The majority of households which constitute backlog in the province are in the rural areas and informal in the rural areas has also slowed down caused by the shortage of bulk electrical infrastructure which requires a lot funding. This bulk is needed before the implementation of household connections. Progress at districts and local municipal level as informed by the assessment report of 00/0 IDPs

6 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04.. Access to water total 50 44 approved indigents in the Province There are a total of 8 households which have inadequate access to water services while there is a need for infrastructure upgrade, extension, operation and maintenance. About 54 of the households who do not have access to water, where there is still a need for housing. Gert Sibande district municipality have an estimated 84 84 household where 5 05 (8.5%) have access to water, Ehlanzeni NKANGALA DISTRICT MUNICIPALITY Name of Municipality Victor Khanye Total No. of Households Households with Access to water Household with Access to water as a Percentage Household below basic level of service/ backlogs Households below basic level of services / backlogs as a percentage 89 480 9.% 909 6.8% Emalahleni 05 594 95 878 90.8% 9 76 9.% Emakhazeni 8 05 9.% 8 6.8% Dr Js Moroka 57 8 5 75 9.% 5 086 8.8% Steve Tshwete Thembisile Hani NKANGALA DISTRICT 50 449 50 6 99.8% 86 0.% 9 7 6 960 70.0% 7 4 0.0% 0 74 86 7 86.7% 44 0.%

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 7 EHLANZENI DISTRICT MUNICIPALITY Name of Municipality Bushbuckridge Mbombela Nkomazi Thaba Chweu Umjindi EHLANZENI DISTRICT Total No. of Households Households with Access to water Household with Access to water as a Percentage Household below basic level of service/ backlogs Households below basic level of services / backlogs as a percentage 0 000 65 000 54.% 55 000 45.8% 84 77 46 909 79.5% 7 88 0.5% 00 7 97 5 96.8% 90,% 59 006 9.% 587 7.7% 8 768 8 06 97.0% 56.0% 457 80 58 65 78.% 99 57.7% GERT SIBANDE DISTRICT MUNICIPALITY Name of Municipality Albert Luthuli Dipaleseng Govan Mbeki Lekwa Mkhondo Msukaligwa Pixley ka Seme GERT SIBANDE DISTRICT Total No. of Households Households with Access to water Household with Access to water as a Percentage Household below basic level of service/ backlogs Households below basic level of services / backlogs as a percentage 5947 4 959 8% 8 988 7% 5 9 050 74% 85 6% 86 954 64 75 74% 9 6% 4 80 97% 96 % 4 88 4 40 70% 0 47 0% 468 4 456 95% 5 5% 895 45 9% 750 8% 84 84 5 05 8.5% 49 799 7.5% 4

8 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 PROVINCIAL Name of Municipality NKANGALA DISTRICT EHLANZENI DISTRICT GERT SIBANDE DISTRICT Total No. of Households Households with Access to water Household with Access to water as a Percentage Household below basic level of service/ backlogs Households below basic level of services / backlogs as a percentage 0 74 86 7 86.7% 44 0.% 457 80 58 65 78.% 99 57.7% 84 84 5 05 8.5% 49 799 7.5% PROVINCIAL 07 86 880 99 8% 9 987 8%. Challenges illegal connections) useful life span and needs extensive refurbishment. which becomes evident in the persistence of water related diseases out breaks. Some infrastructure requires urgent refurbishment and some network suffer from extensive illegal connections..4 Recommendation Provincial bulk Infrastructure Network Assessments need to be conducted on Water services to identify requirements. ing infrastructure i.e. Treatment, Bulk, Storage and Reticulation. The provincial department made funding allocation for the implementation of these projects. Project Implementation Plans and municipal master plans are developed to assist on the multi year capital plans. Large portion of EDM is dominated by rural areas and many people do not have full access to portable water. 5

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 9 Large propositions municipalities in the province are of the poverty pockets and underdeveloped, communities thus making it virtually impossible for accelerated economic growth without the necessary development infrastructure interventions. Infrastructure Network Assessments need be conducted on Water services to identify challenges and.5 ACCESS TO SANITATION Access to basic sanitation: (7%) access approved indigents. That accounts for a 8,8%. As part of the progress by the province on sanitation whilst bringing about a solution by building VIP Sanitation Units. The solutions on PIT Latrine were both the provision of temporary/mobile sanitation units in areas where the state of the PIT Latrines was deplorable and the provision of subsidised suction where the PIT Latrines are still functional whilst the construction of VIP Sanitation Units is underway. The solution on VIP Sanitation Units mainly focused on the maintenance of such systems, provision of VIPÕs for households using shared services and con NKANGALA DISTRICT MUNICIPALITY Name of Municipality Victor Khanye Emalahlani Emakhazeni Dr Js Moroka Steve Tshwete Thembisile Hani NKANGALA DISTRICT Total No. of Household s Households with Access to Sanitation Household with Access to Sanitation as a Percentage Household below basic level of service/ backlogs Households below basic level of services / backlogs as a percentage 89 480 9.% 909 6.8% 05 594 87 009 8.4% 8 585 7.6% 8 70 9.% 958 7.9% 57 8 45 764 79.% 047 0.8% 50 449 49 489 98.% 960.9% 9 7 4 59 6.0% 76 779 84.0% 0 74 0 504 66.7% 0 8.% 6

0 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 EHLANZENI DISTRICT MUNICIPALITY Name of Municipality Bushbuckridge Mbombela Nkomazi Thaba Chweu Umjindi EHLANZENI DISTRICT Total No. of Households Households with Access to Sanitation Household with Access to Sanitation as a Percentage Household below basic level of service/ backlogs Households below basic level of services / backlogs as a percentage 0 000 70 000 58.% 50 000 4.7% 84 77 46 909 79.5% 7 88 0.5% 00 7 59 58.9% 4 40 4.% 59 5 060 74.6% 8 5 5.4% 8 768 7 8 95.0% 947 5.0% 457 80 9 69.7% 8 699 0.% GERT SIBANDE DISTRICT MUNICIPALITY Name of Municipality Total No. of Households Households with Access to Sanitation Household with Access to Sanitation as a Percentage Household below basic level of service/ backlogs Households below basic level of services / backlogs as a percentage Albert Luthuli 5 947 5 68.0% 6 64.0% Dipaleseng 5 9 050 74.0% 85 6.0% Govan Mbeki 86 954 8 94.6% 4 7 5,5% Lekwa 4 0 88 95.6% 40 0.0% Mkhondo 4 88 7 706 50.8% 7 75 49,% Msukaligwa 4 68 780 75.0% 0 90 9,5% Pixley ka Seme 895 0 95 89.0% 500.0% GERT SIBANDE DISTRICT 84 84 8 5 80.% 56 509 9.8% 7

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 PROVINCIAL Name of Municipality Total No. of Households Households with Access to Sanitation Household with Access to Sanitation as a Percentage Household below basic level of service/ backlogs Households below basic level of services / backlogs as a percentage NKANGALA DISTRICT 0 74 0 504 66.7% 0 8.% EHLANZENI DISTRICT 457 80 9 69.7% 8 699 0.% GERT SIBANDE DISTRICT 84 84 8 5 80.% 56 509 9.8% PROVINCIAL 07 86 767 940 7% 05 446 8%.6 CHALLENGES illegal connections) useful live span and needs extensive refurbishment dent from local municipalities which are failing to convert VIP and pit or long drop toilets to water born toilets. designed for small towns and now are to cater for the previously marginalised and the current growth..7 RECOMMENDATION Provincial bulk Infrastructure Network Assessments need to be conducted on Sanitation services to identify challenges and to determine interventions required to alleviate Sanitation supply challenges ing infrastructure i.e. Treatment, Bulk, Storage and Reticulation. Project Implementation Plans and municipal master plans are developed to assist on the multi year capital plans. A Large portion of EDM is dominated by rural areas and many people do not have full access to portable water. Lack of bulk and reticulation infrastructure in these areas aggravates the situation. Poor operation and maintenance by the relevant authorities is at the core of the poor situation. Large propositions municipalities in the province are of the poverty pockets and underdeveloped, communities thus making it virtually impossible for accelerated economic growth without the necessary development infrastructure interventions. 8

No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04.8 ACCESS TO REFUSE REMOVAL NKANGALA DISTRICT MUNICIPALITY Name of Municipality Total No. of Households Households with Access to Refuse removal Household with Access to Refuse removal as a Percentage Household below basic level of service/ backlogs Households below basic level of services / backlogs as a percentage Victor Khanye 89 985 89.5% 404 0.5% Emalahlani 05594 6654 6.0% 9070 7.0% Emakhazeni 8 86 7.0% 55 9.0% Dr JS Moroka 578 578 0.0% 500 89.% Steve Tshwete 50449 4747 94.% 977.0% Thembisile Hani 97 005.0% 80 90.0% NKANGALA DISTRICT 0 74 50 46 45.5% 80 6 54.5% EHLANZENI DISTRICT MUNICIPALITY Name of Municipality Total No. of Households Households with Access to Refuse removal Household with Access to Refuse removal as a Percentage Household below basic level of service/ backlogs Households below basic level of services / backlogs as a percentage Victor Khanye 89 985 89.5% 404 0.5% Emalahlani 05594 6654 6.0% 9070 7.0% Emakhazeni 8 86 7.0% 55 9.0% Dr JS Moroka 578 578 0.0% 500 89.% Steve Tshwete 50449 4747 94.% 977.0% Thembisile Hani 97 005.0% 80 90.0% NKANGALA DISTRICT 0 74 50 46 45.5% 80 6 54.5% 9

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 GERT SIBANDE DISTRICT Name of Municipality Total No. of Households Households with Access to water Household with Access to water as a Percentage Household below basic level of service/ backlogs Households below basic level of services / backlogs as a percentage Albert Luthuli 5 947 7 056.6% 44 89 86.4% Dipaleseng 5 5 00.0% 0 48.0% Govan Mbeki 86 954 60 69.% 6 8.0% Lekwa 4 8 66 57.8% 605 9.0% Mkhondo 4 88 0 77 0.8% 4 44 7.0% Msukaligwa 4 68 08 48.% 599 7.0% Pixley ka Seme 895 467 58.8% 9 48 4.% GERT SIBANDE DISTRICT 84 84 4 6 50.% 4 498 49.7% GERT SIBANDE DISTRICT Name of Municipality Total No. of Households Households with Access to water Household with Access to water as a Percentage Household below basic level of service/ backlogs Households below basic level of services / backlogs as a percentage NKANGALA DISTRICT EHLANZENI DISTRICT GERT SIBANDE DISTRICT 0 74 50 46 45.5% 80 6 54.5% 457 80 9 65 4.% 5 65 5.4% 84 84 4 6 50.% 4 498 49.7% PROVINCIAL 07 86 487 97 45% 557 079 5% 0

4 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04.9 ACCESS TO ELECTRICITY NKANGALA DISTRICT MUNICIPALITY Name of Municipality Total No. of Households Households with Access to electricity Household with Access to electricity as a Percentage Household below basic level of service/ backlogs Households below basic level of services / backlogs as a percentage Victor Khanye 89 985 89.5% 404 0.5% Emalahlani 05 594 00 0 94.8% 5 49 5.% Emakhazeni 8 0 506 86.6% 6.4% Dr Js Moroka 57 8 4 8 7.% 5 49 6.8% Steve Tshwete 50 449 7 86 75.0% 6 5.0% Thembisile Hani 9 7 8 7 90.% 9 054 9.9% Nkangala District 0 74 85 065 86.% 45 677.8% EHLANZENI DISTRICT MUNICIPALITY Name of Municipality Total No. of Households Households with Access to electricity Household with Access to electricity as a Percentage Household below basic level of service/ backlogs Households below basic level of services / backlogs as a percentage Mbombela 84 77 0 60.7% 7 57 9.% Nkomazi 00 7 90 85 90.% 9 870 9.8% Thaba Cheu 59 750 70.7% 9 84 9.% Umjindi 8 768 8 6 46.0% 0 5 54.0% Bushbuckridge 0 000 08 60 90.% 640 9.7% EHLANZENI DISTRICT 457 80 4 805 75% 4 005 0

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 5 GERT SIBANDE DISTRICT Name of Municipality Albert Luthuli Dipaleseng Govan Mbeki Lekwa Mkhondo Msukaligwa Pixley Ka Seme GERT SIBANDE DISTRICT Total No. of Househol ds Househol ds with Access to electricity Household with Access to electricity as a Percentage Household below basic level of service/ backlogs Households below basic level of services / backlogs as a percentage 5 947 7 096 5.% 4 85 47.8% 5 9 404 76.9% 8.% 86 954 68 070 78.% 8 884.7% 4 7 7.9% 4 59 76.% 4 88 4 057 69.0% 0 84.0% 4 68 6 087 59.7% 7 594 40.% 895 6 4 70.9% 6 65 9.% 84 84 78 669 6.7% 06 65 7.% PROVINCIAL Name of Municipality Total No. of Househol ds Househol ds with Access to electricity Household with Access to electricity as a Percentage Household below basic level of service/ backlogs Households below basic level of services / backlogs as a percentage Nkangala District 0 74 85 065 86.% 45 677.8% EHLANZENI DISTRICT 457 80 4 805 75% 4 005 5% GERT SIBANDE DISTRICT 84 84 78 669 6.7% 06 65 7.% PROVINCIAL 07 86 807 59 75% 65 847 5%

6 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04.0 Free Basic electricity (FBE) Municipality Submitted Configured Collected FBE% Chief Albert Luthuli,04,04,74 85.4 Msukaligwa 44 44 9 84.6 Mkhondo 945 945 77 78 Dr Pixley Ka Isaka Seme,500,48,08 75. Lekwa,500,500,4 76. Dipaleseng 476 476 94 8.8 Govan Mbeki,904,904,40 8 Victor Khanye,47,47,7 9.4 Steve Tshwete 48 48 9 9.9 EmakhazenI 80 80 70 87.5 Thembisile Hani 9,49 9,49 7,970 84.6 Dr J S Moroka 4,80 4,80,756 77.9 Mbombela 6,04 6,04 5,7 84. Thaba Chweu,7,7, 8.6 Umjindi 4 4 4 00 Nkomazi 0,499 0,499 8,558 8.5 Bushbuckridge 5,766 5,766 8,879 7.7.0. Challenges time and compromising the quality of supply to legal customers tricity in the province Most municipalities in the province are facing almost common challenges this includes amongst others, poor planning, limited technical capacity to render the basic services specially the WSA local municipalities, lack of accuracy and integrity in information submitted from municipalities, none which have long passed their life spun, are negatively impacting on some of the initiatives of municipalities. The current development made by municipalities are also affected which may also lead to the none achievement of the millennium goals

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 7.0. Recommendations eradication of the service backblocks for the poor. Most of the Local Municipalities that and capacity to implement. Municipalities in the implementation of INEP programme project management and project implementation this will assist the province on meeting its Universal Access to electricity by 0 when planning for basic services in municipalities. 4

8 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 CHAPTER LOCAL ECONOMIC DEVELOPMENT 5

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 9. Introduction Government has a decisive and unapologetic role to play in shaping the economic destiny of our coun local government system. There has been a realization from government that investment can only occur where the potential and competitive advantages of the various local economies are audited, known and exploited. Municipalities play a critical social lobbying role which entails harnessing diverse such as SEDA and the DTI to foster a good investment climate. In order for municipalities to be able to deliver on their LED mandate it is important that all municipalities develop a comprehensive, credible and implementable LED strategy which is both aligned to the IDP and which is properly recognized within the budget for funding purposes. The structures of each and functional LED Forums. This chapter of the report endeavors to evaluate the performance of municipalities in the development and implementation of LED strategies and plans as well as in the development of structures required to meeting the challenges. It also reports on the capacity of municipalities to implement LED in their respective municipalities.. Progress all municipalities in the province. The maturity assessment indicated that municipalities are maturing... The Maturity Assessment Tool The LED Maturity Assessment provides a rapid assessment of the readiness of a municipality to suc The LED Maturity Assessment provides useful information into what is working, what has worked and The outcomes of the LED Maturity Assessment are presented in a way that facilitates intra and intermunicipal learning. A management tool with which the municipality can measure its LED progress towards enhancing sound LED practice and implementation over successive years. A practical guide to sound LED practice that will assist LED, IDP and SDF planning and strategy formulation. A common principled approach to LED amongst local municipalities that can add value to creating a common approach to LED. 6

0 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04.. How does the LED Maturity assessment work? economy and make sound choices on pragmatic initiatives. to implementation and measurement of impact... Development and implementation of LED strategies and plans There has been substantial improvement in the development and implementation of LED strategies and palities had developed LED strategies in the province. More than 80% of municipalities in the province now have an LED strategy. Table : Status of municipalities with LED strategies in the province per district STATUS OF LED STRATEGIES PER DISTRICT 7 7 AMP 5 6 4 5 08/09 09/0 0 J Nkangala District Ehlanzeni District Gert Sibande District Table above demonstrates that at least in all districts municipalities most municipalities had an LED strategy in place. The improvement in the number of municipalities with LED strategies has been en a number of municipalities across the province. The LED National Framework 0060 requires that LED must be strategically located within the nancial viability and management, good governance and public participation and municipal service delivery). 7

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 In order for municipalities to successfully implement LED it is recognized that the following functions should be undertaken by the municipality: Economic research Conducting feasibility studies Developing business or project concept papers for identified opportunities Developing business plans for certain projects LED planning, implementation and monitoring Investment and business promotions and summits SMME support and skills development Economic sector promotion through summits

No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 Table : LED Location in municipalities Municipality LED location within each municipality Staff compliment NKANGALA DISTRICT Delmas Municipal Managers office LED Manager Emakhazeni Municipal Managers office Vacant LED/IDP Manager Secretary Emalahleni Municipal Managers office LED Manager LED Officer Nkangala DM Municipal Managers office Chief Economist Transport Economist Researcher Steve Tshwete Municipal Managers office LED Manager Administrative Officer Thembisile Hani Municipal Managers office LED Coordinator Dr. JS. Moroka Municipal Managers office LED/IDP Manager LED Coordinator Tourism Officer EHLANZENI DISTRICT Bushbuckridge Municipal Managers office Director Economic Development and Planning LED Manager LED Officer Ehlanzeni DM LED Unit Deputy Director LED Ass Directors LED Officer Admin Officer Mbombela Chief Operations office LED Director LED Manager Tourism Officer LED Officer Nkomazi Municipal Managers office LED Director LED Manager LED officer Tourism Officer Thaba Chweu Municipal Managers office LED/IDP Manager Umjindi Municipal Managers office LED/IDP Manager LED Cocoordinator LED Officer GERT SIBANDE DISTRICT Albert Luthuli Municipal Managers office Director Economic Development and Planning LED Coordinator Dipaleseng Municipal Managers office LED Officer Gert Sibande Technical Services Dept Director IDP/LED LED Manager LED Officer Govan Mbeki Municipal Managers office LED Officer Lekwa Municipal Managers office Acting LED Manager Admin Officer Mkhondo Municipal Managers office LED/IDP Manager Msukaligwa Corporate Services Department Assistant Director LED LED Officer Pixley ka Seme Corporate Services Directorate Director Economic Development and Planning LED Clerk 9

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4.. Portfolio Committees and LED Forums Political leadership is very important in the implementation of LED in municipalities. Section 79 of the Municipal Structures Act 7 of 998 allows municipalities to establish committees necessary for the effective performance of any of its functions or the exercise of its powers in this regard. A status quo analysis of the three districts was undertaken for the periods 008/009 and 009/00 financial years: Table : Status of LED Forums and portfolio Committees Municipality FLED Portfolio Committ 008/009 009/00 008/009 009/00 N KANGALA MUNICIPALITIES Delmas,./,./ Dr. J.S Moroka Emakhazeni,./ Emalahleni,./ Nkangala DM Steve Tshwete Thembisile Hani EHLANZENI MUNICIPALITIES Bushbuckridge,./,./ X Ehlanzeni DM Mbombela Nkomazi Thaba Chweu Umjindi Albert Luthuli Dipaleseng Gert Sibande Govan Mbeki GERT SIBANDE MUNICIPALITIES./ Lekwa./ Mkhondo Msukaligwa./ Pixley ka Seme X X X v N X X ED X X X X,./ X X At the end of the 008/009 financial year, all municipalities had an LED Portfolio Committee in place the status remained the same at the end of 009/00 financial year. However, some portfolio committees are still responsible for other portfolios other than LED. A slight improvement was observed in the establishment of LED Forums within each municipality. By the end of the 009/00 financial year 5 municipalities had an LED Forum in place.

4 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04.. Structures for the engagement of LED stakeholders (LED Forums) LED is a stakeholder driven process and requires the establishment of a platform to engage with stakeholders when implementing LED strategies and programmes. Therefore the establishment of an LED Forum within each municipality is the means to engaging with stakeholders. A status quo analysis of. Job creation panded Public Works Programme and Community Works Programme..4 Challenges experienced with LED in the Province LED is not strategically located within municipal organograms, as required by legislation (both the National Framework for LED 0060 and the 5 year strategic agenda on local government). LED is There is a general misplacement of the LED unit within some municipalities with few municipalities within the Corporate Services unit). This impedes a municipalityõs ability to deliver on its LED mandate. in the municipalities contributes to the misunderstanding of what LED stands for. the structure, are funded and by whom. therefore there is no need for a specialized unit. The LED units created within municipalities are either grossly understaffed or inappropriately staffed fact that LED is a specialized area which requires special skills in economics, business

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 5 LED units do not receive adequate budgets and other resources to perform critical LED functions such There is a complete detached relationship between local economic development and spatial planning (which determines landuse patterns) within the municipalities. This scenario is due mainly to the fol development and how this should be linked to spatial planning and land use. Implementation of LED strategies by municipalities has not been overly successful. The reason for this failure can essentially be attributed to the fact that municipalities do not regard LED as an important.5 Interventions by national and provincial government, SALGA and other government agencies the province to assess the level of maturity in municipalities with regard to the implementation of LED programmes. The department plans to provide an LED learnership at both level 4 and level 5 of the SAQA

6 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 CHAPTER 4 MUNICIPAL FINANCIAL VIABILITY AND MANAGEMENT

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 7 4. Introduction in National and Provincial local policy discussions. The dialogue and concern with the state of mu governance. Municipalities are not only central to the provision of basic services, but are increasingly the drivers poverty and expand economic opportunities for the poor, then the budget of developmental local countryõs resource go towards expanding the economic opportunities of all its citizens. The management of revenue is governed by established policies that are directly related to revenue management and debt collection namely billing system and indigent policy. Some municipalities have problems with accurate billing. This results in consumers losing faith in the invoices they receive from their indigent policies on regular intervals. Some municipalities do not have capacity to administer the indigent policy. Based on the AG reports, there is also a concern that the increasing level of debtors may undermine the liquidity of municipalities. The underlying cause of this may be the capacity to develop and implement viable cash collection and billing system. The enactment of (MPRA) in 005 has created challenges for municipalities in the Province. The challenges range from funds to develop a valuation roll and the scarcity of Professional or Associated Valu on the implementation of MFMA. There is a clear division and separation of roles and responsibilities in terms of functions assigned. 4

8 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 PROGRESS MUNICIPAL FINANCIAL VIABILITY AND MANAGEMENT PERFOMANCE HIGHLIGHTS term credit rating of a stablea.za, as issued by moody investorõs services. Although the rating of A.za has been maintained for the last three years. The following municipalities have performed exceptionally well in revenue collection Steve Tshwete OUTSTANDING DEBT Property Rates Water Electricity Other Total By Income Source 009 00 008 009 009 00 Albert Luthuli 008 009 009 00 008 009 009 00 008 009 009 00 008 009 00 Days 060 days 6090 days 90 days over 0days 9 05 48 44 67 80 54 764 4 4 06 008 45 0 880 679 97 979 580 870 8 886 04 9 77 450 777 877 966 4 555 06 808 70 75 46 058 88 640 495 949 7 96 0 6 966 879 8 6 407 789 45 0 485 90 404 87 70 008 04 95 599 908 4 08 545 8 57 558 5 464 7 59 60 8 74 806 45 744 80 5 97 587 4 9 67 6 76 54 Dipaleseng 00 Days 060 days 6090 days 90 days over 0days Property Rates electricity Water Sewerage Refuse Housing Rental other Total by income source 6 46 45 766 67 985 478 84 67 090 65 9 44 98 476 68 848 476 57 6 548 867 99 46 66 7 00 68 65 47 40 6 6 84 975 44 966 8 90 6 47 470 86 59 85 945 486 57 449 656 9 6 040 407 7 05 987 4 57 54 4 84 00 00 94 09 009 00 Total 8 585 8 585 7 58 45 99 58 569 00 94 09 40 8 486 0 08 008 009 Total 0 88 9 4 40 05 9 9 54 76 74 70 54 05 009 00 5 78 706 7 65 58 9 567 6 054 56 5 894 755 80 60 8 4 9 90 6 68 986 45 60 6 7 6 879 008 009 00 94 09 00 94 09 5

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 9 Govan Mbeki 00 Days 060 days 6090 days 90 days Property Rates Electricity Water Sewerage Refuse Loan instalments other Total By Income Source 9 9 7 0 46 56 9 4 964 55 06 90 498 75 669 85 046 80 500 0 074 84 0 79 508 6 60 4 45 09 550 89 780 857 6 687 0 85 5 048 09 5 59 608 7 989 8 8 448 66 577 40 70 07 857 47 797 757 597 8 44 97 7 645 575 644 0 975 46 770 4 008 75 954 57 58 598 4 6 57 05 9 98 8 90 0 4 409 0 00 94 9 75 55 75 7 0 890 8 48 87 60 05 489 069 80 008 56 68 48 8 7 088 8 049 5 000 074 990 97 860 47 604 64 548 54 060 6 47 696 Lekwa 00 Days 060 days 6090 days 90 days Property rates Electricity Water Sewerage Refuse Other Total By Income Source 75 558 5 558 890 765 4 0 79 66 857 08 4 895 564 8 09 8 09 0 45 6 78 7 679 04 55 6 5 55 896 8 587 668 94 899 947 46 57 065 98 568 77 094 95 7 84 07 06 46 84 9 67 09 86 04 09 89 45 89 589 8 Mkhondo 00 Days 060 days 6090 days 90 days Services debtors Total By Income Source 6 65 96 6 65 96 5 9 66 5 9 66 98 098 98 098 448 8 448 8 4 7 667 4 7 667 8 98 8 98 49 474 49 474 over 0days 7 850 95 40 58 78 09 746 685 59 599 8 54 6 0 0 077 008 5 88 08 7 554 944 9 64 4 7 806 97 7 55 745 47 545 4 45 40 95 9 4 6 5 67 49 57 5 054 over 0days 648 47 648 47 over 0days 60 68 04 60 68 04 54 45 8 54 45 8 7 098 08 8 7 45 4 49 587 55 7 09 8 7 64 7 009 00 4 40 00 59 58 67 797 5 68 7 07 6 780 788 00 877 54 05 075 40 60 655 009 00 008 009 6 478 977 957 65 9 605 455 55 580 77 5 59 507 0 660 9 54 068 807 4 89 89 008 009 906 90 009 00 77 88 44 77 88 44 8 09 8 09 008 009 65 468 5 65 468 5 6

40 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 Msukaligwa 00 Days 060 days 6090 days 90 days Rates and service Charges Electricity Water Total by income source Pixley Ka Seme Property Rates Services Debtors Loan Debtors Sundries Total by income source Dr JS Moroka Property rates Water Sewerage Refuse Other Total By Income Source 4 96 47 740 857 047 68 0 74 967 5 74 67 905 5 7 950 9 986 64 7 95 45 8 785 5 44 4 066 687 74 59 78 849 59 795 7 7 85 94 656 69 8 55 457 757 94 50 909 904 4 8 8 86 80 50 7 098 06 9 750 60 4 679 9 7 689 065 74 585 5 97 9 60 889 00 Days 060 days 6090 days 90 days 75 554 0 609 48 6 4 6 88 96 8 7 089 965 089 5 604 6 708 6 45 65 0 994 566 67 897 574 570 0 467 57 509 778 05 95 84 5 07 75 54 47 47 8 080 409 50 79 58 NKANGALA DM 47 995 05 44 579 49 44 9 5 006 776 98 00 Days 060 days 6090 days 90 days 6 66 5 50 85 0 7 705 0 750 74 6 597 94 77 706 79 over 0days over 0days 4 68 80 8 46 86 09 564 7 7 96 900 8 86 7 over 0days Emakhazeni 00 Days 060 days 6090 days 90 days Other Total by income source 0 78 0 78 87 9 048 50 048 50 55 59 55 59 657 880 657 880 9 76 9 76 4 0 4 0 94 68 94 68 over 0days 5 785 9 5 785 9 4 987 40 4 987 40 6 88 96 74 8 4 009 00 6 66 5 009 00 95 65 87 607 58 67 9 6 9 98 009 00 6 978 0 50 57 84 6 4 008 009 8 956 876 8 78 689 8 7 94 40 409 507 008 009 870 44 5 5 7 6 708 6 45 65 55 79 6 008 009 50 85 0 7 705 0 750 74 6 597 94 77 706 79 009 00 6 7 07 6 7 07 008 009 50 4 66 50 4 66 7

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 4 Emalahleni 00 Days 060 days 6090 days 90 days Property Rates Services Debtors Total by income source Steve Tshwete Services Debtors Property Rates 0 688 50 88 577 6 59 65 9 57 4 55 75 78 46 9 485 47 0 68 886 90 680 96 4 567 856 945 478 5 457 64 8 40 84 855 9 77 70 56 556 665 489 875 99 5 54 408 067 5 7 84 694 9 9 7 00 Days 060 days 6090 days 90 days 7 74 579 9 6 8 5 56 498 8 46 558 Estates Other Total by income source Thembisile Hani Property Rates Water Sewerage Refuse vat Other Total by income source 04 5 0 8 8 504 68 6 58 79 80 095 78 55 9 059 98 550 796 56 87 7 89 5 4 4 50 089 995 78 749 05 754 7 48 68 5 06 078 55 847 44 957 4 888 5 9 4 47 65 9 678 497 5 658 60 44 7 800 4 66 750 950 55 57 54 469 00 Days 060 days 6090 days 90 days 058 96 9 56 964 7 050 7 555 74 560 09 90 940 877 55 776 4 84 7 656 7 4 89 5 98 56 55 77 4 7 69 789 48 0 059 95 789 55 8 76 7 74 697 084 over 0days 90 5 45 40 57 065 500 906 58 70 07 6 7 865 74 407 97 47 over 0days 698 80 800 748 4 84 4 6 9 06 849 47 406 7 56 889 707 04 64 4 7 645 over 0days 695 07 9 078 9 559 966 9 709 5 7 06 65 8 944 94 88 004 076 70 6 68 9 947 547 79 65 60 4 4 7 65 4 7 705 775 8 944 94 94 946 8 009 00 995 54 509 8 64 6 995 009 00 799 997 4 054 689 66 8 008 009 86 98 60 400 8 0 487 74 9 008 009 59 886 0 87 06 85 859 6 56 705 55 86 009 00 4 006 69 4 857 46 78 0 0 648 586 49 05 756 008 009 70 6 68 9 947 547 79 65 84 04 99 8

4 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 Victor Khanye 00 Days 060 days 6090 days 90 days Property Rates Electricity Water Sewerage Refuse Other Total by income source 88 9 904 86 8 45 05 64 56 98 4 69 9 678 08 46 7 75 9 49 9 40 9 50 700 00 8 60 46 787 40 60 5 404 65 9 4 7 7 440 977 44 856 60 84 08 48 07 07 856 79 96 56 095 5 869 85 77 74 74 778 056 675 58 0 8 84 440 557 940 89 947 46 68 80 44 66 856 50 9 45 86 4 68 69 Ehlanzeni DM 0 9 90 5 047 55 60 998 96 4 6 8 4 409 79 05 58 85 78 069 6 9 889 87 675 58 4 58 0 807 99 8 68 48 76 5 685 7 8 78 Bushbuckridge 00 Days 060 days 6090 days 90 days Consumer Debtors Property Rates Services Debtors Other Total by income source 7 474 905 66 00 6 558 99 79 894 4 949 80 8 68 60 55 750 6 80 4 4 6 640 8 88 99 465 987 90 997 5 80 766 8 889 44 70 875 055 9 464 4 77 778 9 694 76 94 65 6 40 7 865 88 64 95 44 70 8 97 88 8 790 5 7 468 40 60 769 40 4 504 6 754 56 7 645 5 400 508 7 over 0days over 0days 8 09 57 44 8 59 566 68 4 0 057 56 49 46 569 0 49 597 777 8 9 7 84 09 8 06 9 487 8 7 9 4 70 46 9 078 404 84 776 677 94 6 5 09 544 64 666 88 5 4 9 4 77 80 869 74 90 94 78 009 00 5 6 64 008 009 8 656 579 009 00 4 509 686 45 98 654 70 67 544 5 90 488 4 509 686 008 009 9 744 06 50 08 76 44 46 59 4 705 54 9 4 84 9

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 4 Mbombela 00 Days 060 days 6090 days 90 days Property Rates Electricity Water Sewerage Refuse Interest Other Total by income source 40 6 559 4 4 789 97 69 0 4 70 978 0 008 48 46 6 0 567 996 6 954 66 005 45 07 48 48 807 0 66 479 50 8 40 977 4 68 4 5 46 75 868 705 40 69 456 705 66 756 9 085 5 5 846 79 79 790 08 09 95 49 75 55 549 50 696 650 589 8 678 9 487 76 7 9 7 07 50 596 58 77 596 644 69 8 46 69 789 856 70 47 9 5 908 988 955 74 07 4 64 75 66 985 760 05 7 7 94 589 7 68 87 5 6 6 66 0 776 664 456 55 70 86 54 567 88 0 859 9 89 8 7 47 8 44 894 04 57 55 8 7 809 4 6 807 499 Nkomazi 00 Days 060 days 6090 days 90 days Services Debtors Property Rates Consumer Debtors Total By Income Source THABA CHWEU Services Debtors Property Rates Total By Income Source 4 976 6 5 6 856 99 6 9 5 77 78 4 94 5 799 75 599 45 40 786 5 05 59 90 5 706 0 56 88 45 47 908 65 86 50 9 757 0 96 658 676 909 59 47 840 66 85 44 5 88 450 069 5 97 460 05 6 0 60 970 59 9 09 45 00 Days 060 days 6090 days 90 days 4 480 856 87 04 7 7 870 60 4 585 94 5 88 75 07 65 8 789 440 60 07 77 66 47 768 6 6 94 4 004 867 0 6 5 085 0 8 79 7 4 0 445 994 8 80 5 67 795 770 69 9 665 990 04 over 0days over 0days 94 07 6 97 70 0 0 705 6 08 46 7 over 0days 47 94 95 0 4 57 78 68 0 8 58 7 6 96 49 55 49 5 9 74 456 9 4 9 9 00 9 5 009 00 87 749 644 47 598 756 0 98 76 008 009 65 99 50 4 94 5 4 7 66 58 04 950 70 96 8 6 485 9 5 658 009 00 78 8 98 50 64 468 6 878 405 0 68 09 0 974 008 009 9 69 89 79 4 79 8 48 85 645 009 00 64 05 848 40 650 78 04 856 576 60 606 008 009 5 66 77 74 478 74 4 5 40

44 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 Umjindi 00 Days 060 days 6090 days 90 days Services Debtors Property Rates 7 74 579 9 6 8 5 56 498 8 46 558 Estates Other Total By Income Source 04 5 0 8 8 504 68 6 58 79 80 095 78 55 9 059 98 550 796 56 87 7 89 5 4 4 50 089 995 78 749 05 754 7 48 68 5 06 078 55 847 44 957 4 888 5 9 4 47 65 9 678 497 5 658 60 44 7 800 4 66 750 950 55 57 54 469 over 0days 698 80 800 748 4 84 4 6 9 06 849 47 406 7 56 889 707 04 64 4 7 645 009 00 799 997 4 054 689 66 8 7 65 4 55 86 008 009 59 886 0 87 06 85 859 6 56 705 49 05 756 500 000 000 000 500 000 DEBTORS AGE ANALYSIS EMI 00 060 6090 Over 90 Total Days Days Days Days 008/009 009/00 SUMMARY PER DISTRICT Gert Sibande The total debt owed to municipalities in Gert Sibande district by various debtors type ing debts of R86Million or 5%. Dipaleseng The bulk of the outstanding debt falls within the over 0 days, accounting for 8 % the culture of nonpayment. The provision for bad debts has been adjusted accordingly. The usage of egy in this regard, comprising a drive to register indigents. Strictly applying the credit control policy, data cleansing, and a monitoring all distribution losses Mkhondo 4

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 45 NKANGALA DISTRICT The analysis indicates the total debt owed to municipalities in Nkangala district by various debtorsõ increased by R84Million or 0% in 00. Steve Tshwete represents 54, 5% of outstanding debts. That provision of,5m was made for doubtful debts whilst a erty rates totaling 4, 5% in 00 Thembisile Hani EHLANZENI DISTRICT The total debt owed to municipalities for Ehlanzeni district amounted to R64Million in 00 and Bushbuckridge The analysis indicates that the main increase in debts is the levying of rates. The total year by,84,85 or6%. Generally there was no decrease in debtors for the year under review. Thaba Chweu Debts written off The highest contributor in total amount written off is Mbombela at RM in 00 and M in OUTSTANDING DEBT FOR THE PROVINCE 000 000 000 500 000 000 000 000 000 500000 000 000000 000 500 000 000 008009 00900 Gross Provision for net balances Debts vaiten balance bad debts off for the year 4

46 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 Gross balance 008009 00900 00900 008009 Provision for bad debts net balances Gross balance Provision for bad debts net balances debts written off Municipality Gert Sibande Albert Luthuli 7 6 880 87 6 05 69 70 97 0 6 749 84 4 87 460 Dipaleseng 09 00 08 64 87 50 45 0 807 4 85 845 4 85 845 Govan Mbeki 4 89 90 77 0 09 57 67 8 40 60 655 89 57 544 4 076 Lekwa 4 74 6 4 89 99 8 55 44 69 656 09 6 749 0 906 99 Mkhondo 65 468 5 55 850 908 9 67 65 77 88 44 6 056 78 4 76 866 Msukaligwa 6 9 98 0 89 78 5 09 55 40 409 509 95 850 44 559 98 Pixley Ka Seme 56 84 9 5 7 8 64 046 74 8 567 6 66 777 57 5 790 SUB TOTAL 09 85 6 86 58 60 74 604 0 77 99 5 98 549 86 9 89 89 Nkangala DM Dr JS Moroka 60 5 06 56 46 4 048 94 77 706 79 74 66 597 04 78 Emakhazeni 77 6 7 7 65 48 94 6 7 07 0 6 7 07 Emalahleni 76 956 54 0 0 6 75 76 80 4 7 97 6 99 879 94 44 48 Steve Tshwete 49 05 756 8 445 4 0 608 4 55 86 09 567 45 68 964 77 7 Thembisile Hani 84 04 99 6 64 45 0 678 847 94 94 4 64 844 80 0 079 Victor Khanye 90 94 79 8 68 6 5 04 60 94 6 78 004 498 4 97 5 SUB TOTAL 78 7 698 489 87 90 48 850 08 86 9 66 666 00 09 96 9 6 Ehlanzeni DM Bushbuckridge 9 4 8 00 000 000 9 4 8 4 509 687 0 550 000 959 687 Mbombela 0 976 58 0 68 45 90 94 5 658 77 895 56 5 56 4 90 80 474 498 Nkomazi 6 95 59 8 874 78 8 06 5 84 09 40 74 4 467 Thaba Chweu 74 4 5 44 47 79 9 869 459 04 855 577 44 47 79 60 8 784 Umjindi 9 779 0 768 658 8 4 4 696 45 8 004 57 69 96 SUB TOTAL 55 97 69 4 8 4 0 788 958 64 97 584 480 96 568 6 45 06 90 80 474 498 TOTAL FOR ROVINCE 8 86 698 78 59 4 644 4 87 84 59 50 085 5 459 696 94 97 96 00 474 498 PLEASE NOTE THE SOURCE :THIS INFORMATION REPRESENT ACTUAL FIGURES AS AUDITED BY AG FROM AFS AND AS ATTACHED TO THE ANNUAL REPORTS 4

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 47 PROVINCIAL SUMMARY The total debt owed to municipalities in Mpumalanga province amounted to R, 84, Billion in 00 OUTSTANDING DEBTS TO REVENUE 008009 00900 Municipality Total debts Revenue Variance % Total debts Revenue Variance % Gert Sibande 7 6 880 70 97 0 6 55 Albert Luthuli 9 50 7 54 49 9% 80 R 55 64 50 % 09 00 08 4 85 845 09 06 Dipaleseng 9 57 785 5 84 5 5% 809 R 5 59 06 5% Govan Mbeki 4 89 90 7 67 9 98 76 00 9% 40 60 655.00 944 678 87 R 54 075 8 9% Lekwa 4 74 6 4 978 6 7 5 97 8% 69 656 09 5 784 6 R 46 8 7% Mkhondo 65 468 5 0 56 48 65 057 85 99% 77 88 44.00 9 99 9 R 48 047 46% Msukaligwa 6 9 98 9 05 790 66 85 4% 40 409 509 90 448 4 R 50 08 75 07% Dr Pixley ka isaka Seme 56 84 9 99 7 00 4 4 87 75% 74 8 567.00 6 69 95 R 5 5 58 7% 77 99 5.00 TOTAL 78 7 699 09 8 89 4 489 807 8% 9 57 Ehlanzeni DM 977 877 47 R 96 489 899 7% TOTAL 09 85 6 78 56 67 75 49 57% Nkangala DM 8 080 Dr JS Moroka 60 5 06 98 988 49 8 477 86 9% 77 706 79 8 R 60 7 99 06% 008 487 Emalahleni 76 956 54 856 8 4 579 7 77 09% 4 7 97 845 R 587 6 548 9% 88 869 Emakhazeni 77 6 75 744 48 5 960 469 98% 6 7 67 84 R 7 74 70 45% 94 94 4 46 768 Thembisile 84 04 99 44 58 664 60 495 65 7% 54 R 5 844 7 60% 4 555 Victor Khanye 90 94 79 67 5 86 8 00 080 6% 94 6 095 R 6 46 5% 666 66 Steve Tshwete 49 05 756 649 059 68 600 005 87 % 55 86 09 09 R 6 476 88 08% 47 44 R 550 67 705 7 68% Thaba Chweu 74 4 5 7 06 585 98 675 % 04 855 577 Mbombela 0 976 98 000 677 094 686 70 6% 5 658 R 4 696 Umjindi R 9 779 08 7 84 79 060 045 7% 45.00 Nkomazi 6 95 59 56 7 0 9 9 50 % 84 09 R 4 509 Bushbuckridge R 9 4 8 46 767 808 7 54 975 66% 687.00 TOTAL 55 97 69 47 8 96 99 56 557 54% 64 97 584.00 8 86 699 6 8 657 888 890 856 0.6 84 594 067.00 99 97 95 R 94 44 74 90% 6 09 R 79 887 49 69 86% 45 7 94 R 0 5 46 48% 58 79 665 R 6 608 456 57% 570 686 R 48 76 445 00% 885 04 R 4 66 0 47 54% 7 6 5 96 R 4 79 9 699 0.64 44

48 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 PROVINCIAL SUMMARY OUTSTANDING CREDITORS Albert Luthuli 00900 008 009 009 00 008 009 009 00 008 009 009 00 008 009 00900 008009 00 Days 060 days 6090 days over 90 days total total trade creditors 088.00 00% Dipaleseng 00 Days 060 days 6090 days over 90 days total total bulk electricity 604 90 9.7% pay deductions 955 % VAT 57 00 % Pension 464 840 5% trade creditors 5 7 80 90 000 65% Total 8 768 805 90 000 00% Emalahleni 00 Days 060 days 6090 days over 90 days 00900 008009 bulk water 4 9 0 0 0 0 0 0 0.0% 0 bulk electricity 8 495 0 0 0 0 0 0 0 0.7% 0 pay deductions 69 94 0 0 0 0 0 0 0 4.8% 0 VAT 780 0 0 0 0 0 0 6.0% 0 Pension 778 785 0 0 0 0 0 0 0 5.% 0 Loan Repayment 54 0 0 0 0 0 0 0.7% 0 Trade Creditors 40 00 0 0 0 0 0 0 0.5% 0 AG 64 40 0 0 0 0 0 0 0.% 0 Total 55 0 668.00 0 0 0 0 0 0 00% 0 Gert Sibande 00 Days 060 days 6090 days over 90 days 00900 008009 Other 7 5 97 00% 0 Umjindi 00 Days 060 days 6090 days over 90 days 00900 008009 Other 7 787 00% 0 Thaba Chweu 00900 008009 00 Days 060 days 6090 days over 90 days Bulk Electricity 0 956 977 40% 0 Pay Deductions 75 09 5% 0 Pension 98 4 % 0 Loan repayment 557 868 % 0 trade creditors 058 545 47% 0 AG 89 404 % 0 Total 7 596 7 00% 0 45

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 49 Nkomazi 00 Days 060 days 6090 days over 90 days 00900 008009 Bulk Water 5 0 0% 0 Bulk Electricity 47 609 % 0 Pension 9 88 5% 0 Loan Repayment 74 98 % 0 Trade Creditors 406 98 8% 0 Total 7 596 59 00% 0 Nkangala DC 00 Days 060 days 6090 days over 90 days 00900 008009 Other 5 965 5 00% 0 Steve Tshwete 00 Days 060 days 6090 days over 90 days 00900 008009 Bulk Water 0 54 0% 0 Bulk Electricity 79 48 6% 0 Pay Deductions 766 6 4% 0 Pension 48 594 % 0 Loan Repayment 8 68 94 % 0 Trade Creditors 45 4 8 6% 0 AG 467 744 % 0 Other 479 84 % 0 Total 7 998 95 00% 0 SUBTOTAL 5 55 97.00 400 000 00 000 CREDITORS AGE ANALYSIS 00 000 00 000 L If 00 060 6090 Over 90 Total Days Days Days Days 008/009 009/00 46

50 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 amounted to R65 0 000. The consolidated closing balances as at 0 June 00 amounted to R5 The analysis further indicates that LM and district have no outstanding creditors Lekwa,Govan Emakhazeni, Bushbuckridge, and Mbombela local municipalities and Ehlanzeni DC REVENUE ENHANCEMENT 4.. Billing systems: Most of the municipalities in the province do have proper billing systems. The data on the billing systems of some of the municipalities are not accurate or updated. The incorrect databases of those municipalities are therefore the biggest contributor to the increase of debtors. Municipalities are encouraged to pass by laws that give effect to credit control and debt collection policies. Thembisile Hani The municipality currently depends on grants; the municipality is exploring innovative ways of expanding income base. The department has plans to embark on the cleansing of the consumer database and bringing it into line with the information in the valuation roll. Alternative sources unable to pay for services These efforts will ensure reduction of pressure on the grants. Part of the process will involve review of cies will be enforced and collection targets will be set Finance is planning to launch an enquiries desk and later a customer relations call centre to promote dialogue between the municipality and the community. The municipality revenue base is very low due to poor collection rate and hence the municipality is viable if grant funding is either decreased or not allocated, this turn poses a threat to the ability of the municipality to continuously deliver sustainability services in the future. The municipality collection rate averaged around three per cent (%) of billed revenue. Steve Tshwete a collection calculated on the total levies for a period compare to a total payment received during the same period is used to measure revenue recovery. The implementation of the credit control policy and continuous strict actions taken in terms of this policy resulting in a collection rate remain within the acceptable norms Bushbuckridge management and debt collection such as the billing system and indigent policy. Problems are experienced with regard to accurate billing. This to an extent results in consumers losing faith in the invoices capacity to administer them. The council has appointed a service provider to assist the municipality to accelerate the recovery of outstanding debts and also data cleansing to curb the accumulation. Council has undertaken to implement credit control and debt collection policy against the defaulters regarding payment and to update the indigent register 47

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 5 GRANT DEPENDENCY Grants and subsidies (000) 008009 00900 Own revenue (000) Total revenue (000) Grants and subsidies (000) Own revenue (000) Total revenue (000) Municipality NKANGALA DC R 49,54 R 44,57 R 9,85 R 9 00 R 4 466 R 566 85% 5% 00% 7% 9% 00% Victor Khanye R 48,40 R 8,84 R 67,54 R 4 87 R 87 0 R 9 9% 7% 00% 6% 84% 00% Emalahleni R 90 R 64 R 48,94 R 70,90 R 850,584 R 74 04 0 44 7% 8% 00% 6% 94% 00% Steve Tshwete R 0,4 R 56, R 666,47 R 5 74 R 779 44 R 8 48 5% 85% 00% 6% 94% 00% Emakhazeni R 9,79 R 5,955 R 7,68 R 69 R 57 84 R 7 7% 7% 00% 9% 8% 00% Thembisile Hani R 07,776 R 6,76 R 44,59 R 0 99 R 9 R 75% 5% 00% 84% 6% 00% Dr Js Moroka R 8,8 R 79,900 R 98,7 R 04 R 9 9 R 6 954 60% 40% 00% 57% 4% 00% GERT SIBANDE R 05,67 R 9,5 R 4,968 R 9 88 R 86 70 R 96 58 88% % 00% % 97% 00% Chief Albert Luthuli R 87,59 R 54,4 R 4,94 R 9 45 R 56 9 R 49 86 6% 8% 00% 6% 8% 00% Msukaligwa R 9,907 R 74,66 R 68,07 R 7 48 R 9 8 R 0 646 5% 65% 00% 9% 7% 00% Mkhondo R 7,704 R 5,97 R,676 R 5 5 R 59 99 R 0 64 58% 4% 00% 46% 54% 00% Dr Pixley ka Isaka Seme R 46,9 R 4,47 R 88,94 R 46 984 R 6 4 R 09 98 5% 47% 00% 4% 57% 00% Lekwa R 7,477 79,5 6,6 R 48 6 R 998 R 8 59 7% 8% 00% 6% 74% 00% Dipaleseng R,046 R 48,096 R 7,4 R 7 66 R 85 008 R 0 64 % 68% 00% 7% 8% 00% Govan Mbeki 86,55 560,84 747,98 R 80 788 R 59 67 R 60 405 5% 75% 00% % 87% 00% EHLANZENI DC 4,00 R 0,8 55,0 R 7 9 R 04 R 8 44 87% % 00% 45% 55% 00% Thaba Chweu No DocÕs Submitted R 7 90 R 84 9 R 4 5% 75% 00% Mbombela R 7 R 78 77,64 64,66,96,00 R 6 9 440 8 55% 45% 00% 9% 8% 00% Umjindi R,055 R 76,7 R 08,7 R 9 88 R 5 586 R 8 44 0% 70% 00% 6% 64% 00% Nkomazi R 60,780 R 70,904 R,684 R 5 860 R 70 756 R 06 65 79% % 00% 66% 4% 00% Bushbuckridge R 4,54 R 87,500 R 50,04 R 0 566 R 8 49 R 85 057 8% 7% 00% 79% % 00% 48

5 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 Bushbuckridge the major income stream of the municipality can be disclosed as follows, giving a birdõs eye view of total income and disclosing the dependency of the municipality on grants and subsi income generated from the sale of water, the raising of assessment rates and other income represent only % of the total income of the municipality. This percentage indicates a downward trend when compared to the previous years of % and is a matter of serious concern for the municipality. Thembisile Hani households and are unable to pay for services. REVIEW OF AUDITOR GENERALÕS REPOR TS general for auditing. AUDIT OUTCOMES 008009 00900 MUNICIPALITY AUDIT OUTCOME AUDIT OUTCOME Albert Luthuli Qualified Qualified Msukaligwa Unqualified Unqualified Mkhondo Outstanding Disclaimer Pixley Ka Seme Disclaimer Disclaimer Lekwa Disclaimer Unqualified Dipaleseng Disclaimer Disclaimer Govan Mbeki Unqualified Unqualified Gert Sibande Unqualified Unqualified Victor Khanye Qualified Unqualified Emalahleni Unqualified Qualified Steve Tshwete Unqualified Unqualified EmakhazenI Unqualified Unqualified Thembisile Hani Disclaimer Disclaimer Dr J S Moroka Qualified Disclaimer Nkangala Unqualified Unqualified Mbombela Qualified Unqualified Thaba Chweu Disclaimer Disclaimer Umjindi Qualified Disclaimer Nkomazi Qualified Qualified Bushbuckridge Unqualified Qualified Ehlanzeni Unqualified Unqualified 49

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 5 SUMMARY OF AUDIT Type of audit opinion 008009 00900 No. No. Adverse 0 0 Disclaimer 5 7 Qualified 6 Financially unqualified (with other matters) 9 7 Financially unqualified (with no other matters) 0 Total Analysed 0 0 pality and Mkhondo local municipality; unchanged; local municipality. The improvements are as a result of leadership involvement and commitment and predetermined objectives. These results bear testimony of what can be achieved if there is political; ership not taking serious action against poor performance to remedy the situation in order to im information not being useful; indicated by the increased number of municipalities found to have contravened laws and legislation; 50

54 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 of the state, including councillors, inadequate controls as well as limitations of scope. This resulted in substantial increase in the number of municipalities incurring unauthorised, irregular as well as fruitless and wasteful expenditure; remains high and there has been no improvement from the prior year. capacity has increased to four the worst case opinions remains an area requiring focused attention. ion to a disclaimer of opinion. This was mainly due to lack of leadership stability in general, but This municipality has been placed under administration. OPERATING EXPENDITURE Note: Due to the budget reform process, the OPEX could not be monitored against the previous 4000000 500000 000000 500000 000000 500000 000000 500000 0 009/00 I Employee Bad and Bulk Other Total Related Doubtful Purchases Expenditure Budget Costs debt 009/00 5

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 55 Ehlanzeni District The year to date operating expenditure for the Ehlanzeni district and its local municipalities has been employee related cost at 844 Million or 4% and bulk purchases at R4million respectively Nkangala District The year to date operating expenditure for the Nkangala district and its local municipalities has been ful debts at 50Million or % respectively Gert Sibande District The year to date operating expenditure for the Nkangala district and its local municipalities has been that the aggregated expenditure for the period under review translated to 6 per cent. lowed by other expenses at 685 Million or %, bulk purchases at R50million or % and bad PROVINCIAL SUMMARY ON OPERATING EXPENDITURE The analysis indicates that all municipalities in the province have a total original/adjusted operating Gert Sibande District municipalities spent 6% followed by Ehlanzeni district municipalities spent The highest contributor for all three districts for operating expenditure is employee related cost at 44% spectively. 5

56 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 OPERATING EXPENDITURE (OPEX) 00900 Adjustment Budgeth Total Expenditure 00900 008009 MUNICS Employee related cost bad & doubtful debts bulk purchases other expenditure Employee related cost bad & doubtful debts bulk purchases other expenditure total adjustment budget Actual expenditure total expenditu re as % of adjusted budget Actual expenditure total expenditur e as % of adjusted budget Gert Sibande DM 59 65 666 4 607 8 47 496 67.00 87 88 967 94 884 5 78 4 80% 84 457 9 9% Albert Luthuli 7 48 84 9 550 8 5 79 70 67 60 097 54 886 745 7 7 6 5 499 78% 04 76% Dipaleseng 0 87 004 8 50 000 45 6 55 6 756 075 40 45 8 07 00 94 75 59 46 47 0 49% 4 887 55 84% Govan Mbeki 0 64 00 0 704 00 0 8 00 6 59 550 94 4 869 7 856 078 905 899 67 990 805 77 50 794 7 959 99% 79 7 80 9% Lekwa 78 944 5 89 065 000 94 560 458 6 7 78 74 780 08 5 598 445 6 569 68 90 09 45 7% 49 75 8 89% Mkhondo 64 556 96 50 845 5 658 65 57 845 6 60 7 40 5 50 96 7% 4 85 96 6% Msukaligwa 08 7 60 6 98 00 0 05 740 80 9 440 50 755 9 45 066 65 7 676 650 76 5 78 65% 6 4 56 9% Pixley Ka Seme 46 09 98 559 5 5 0 658 9 854 44 780 56 7 495 5 90% 4 9 66% SUB TOTAL 764 74 954 0 704 00 99 458 50 0 874 697 94 809 0 7 856 078 50 86 46 685 868 76 08 90 0 48 45% 58 97 56 65% 5

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 57 Nkangala DM 7 446 54 0 000 97 445 90 5 556 65 8 54 88 6 47 00 454 797 780 48% 48 89 478 5% Dr JS Moroka 94 595 964 96 4 768 55 79 74 84 744 9 90 70 7.00 40 474 7 48% 6 06 40 77% Emakhazeni 40 870 0 99 68 4 44 888 44 09 4 4 05 46 5 06 8 754 0 90 967 77 8 879 76% 5 90 650 8% Emalahleni 87 04 57 56 865 0 5 54 76 90 0 54 85 67 59 5 85 00 97 54 4 55 097 959 64 7 875 58 479 9% 90 9 7% Steve Tshwete 99 478 847 89 005 48 6 556 447 604 94 787 850 89 004 46 077 977 88 87 498 66 046 0 6 6 9 96% 5 508 56 9% Thembisile Hani 58 0 58 44 000 000 67 648 75 840 055 57 88 69 66 79 5 997 98 0% 0% Victor Khanye 5 704 8 000 00 8 06 000 67 06 064 859 4 94 90 046 49 84 89 7 90 54 659 769 74 77 5 9% 9 48 9 96% SUB TOTAL 784 96 449 8 860 944 570 65 70 474 06 5 64 094 650 50 66 89 507 8 655 907 586 895 9 6 48 08 05 79% 07 500 09 08% Ehlanzeni DM 66 7 66 9 507 77 64 899 6 50 997 58 59 680 0 5 896 74 8% 56 576 % Bushbuckridge 90 87 088 4 000 000 66 680 74 98 867 80 0% 08 644 045 6% Mbombela 5 676 68 950 78 97 599 79 497 644 560 8 588 899 99 75 78 7 77 968 57 0% 8 968 9% Nkomazi 96 44 9 00 000 776 4 84 9 67 07 9 59 40 94 80 676 46 04 648 4% 69 99 997 90% Thaba Chweu 0 666 65 66 44 50 76 69 450 78 0% 4 66 907 0% Umjindi 54 75 464 4 70 46 9 78 464 47 9 487 569 988 8 065 406 4 9 865 70 74 44 66 746 7% 9 0 708 9% SUB TOTAL 70 878 588 95 54 86 04 490 844 074 5 569 988 4 96 968 87 848 466 8 04 479 454 575 4% 478 8 0 9% TOTALS 5 06 99 94 45 988 64 945 04 674 05 5 47 978 7 06 959 0 006 769 88 04 7 0 54 57 7 6 08 95 44 654 80 4% 54

58 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 E E S S I 00 000 000 000 00 000 000 000 00 000 000 000 00 000 55

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 59 00900 Adjustment Budget Total actual Expenditure 00900 008009 Municipalities water& sanitation electricity housing Roads, Pavements, Bridges & Storm Water other water& sanitation electricity housing roads, pavements, bridges & storm water other total adjustment budget Actual expenditure total expenditure % of adjusted budget Actual expenditure total expenditure as % of adjusted budget Gert Sibande 90 004 5 06 07 90 004 5 06 07 8% 9 6 506 8% Albert Luthuli 500 000 65 50 78 67 00 78 0% 8 6 58 07% Dipaleseng 9 049 04 657 00 77 000 5 08 477 5 50 475 80 645 90 8 54 70 9 69 5 4% 5 7 965 54% Govan Mbeki 6 75 87 6 88 700 894 000 5 78 76 8 70 5 607 645 7 785 8 70 5 08 670 5 60 9 90 55% 4 475 464 70% Lekwa 50 69 5 406 6 97 60 96 675 7 65 0 0% 47% Mkhondo 4 95 8 0 000 700 000 4 000 000 4 8 98 565 48 97 95 8 75 5 70 948 4 07 858 6% 0 46 7 4% Msukaligwa 8 57 40 4 900 000 000 000 0 60 000 4 40 970 5 457 099 7 897 5 0 4 77 769 49 98 400 5 785 086 % 6 45 004 4% Pixley Ka Seme 00 000 8 000 000 676 000 0 776 000 0% 879 79 4% SUB TOTAL 05 897 6 558 900 700 000 40 76 000 5 5 00 60 7 0 97 7 9 780 054 80 656 44 44 449 6 5 54 0 090 074 55% 56

60 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 Nkangala DM 780 500 80 495 780 500 80 495 8% 47 986 46% Dr JS Moroka 5 795 000 8 000 000 9 00 000 7 900 000 4 46 54 7 865 5 069 87 6 64 7 795 000 69 98 06 59% 9 56 6 64% Emakhazeni 900 000 4 000 000 0 500 000 4 504 000 875 95 5 969 94 6 96 904 000 4 58 04 % 4 74 0% Emalahleni 9 6 40 4 00 57 500 000 78 49 76 9 66 9 05 78 9 899 949 054 878 8 78 09 75 566 09 % 59 4 80 4% Steve Tshwete 4 08 767 9 99 59 64 980 45 7 408 64 4 08 676 9 99 59 64 980 45 7 408 64 55 99 8 55 99 9 00% 6 459 49% Thembisile Hani 0% 0% Victor Khanye 5 000 760 000 9 650 000 6 59 978 48 79 84 4 48 87 5% SUB TOTAL 4 658 69 86 75 500 000 0 55 87 47 056 78 95 647 447 49 89 49 4 9 96 44 468 079 88 59 879 54 47 59 0% 5 675 78 9% Ehlanzeni DM 7 077 000 7 600 000 5 0 50 88 64 4 77 076 06 0 0 6 779 50 758 660 7% 7 89 9% Bushbuckridge 7 59 5 9 40 64 566 6 80 0% 78 689 75% Mbombela 6 47 894 5 076 90 76 98 895 44 84 66 990 899 7 5 70 9 0 449 646 6 48 9 89 69 95 46 0 69% 5 64 806 7% Nkomazi 67 000 000 7 98 500 85 000 7 00 000 46 56 56 76 67 5 45 858 8 98 68 8 8 764 8 6 646 656 70 076 7 4% 7 77 770 5% Thaba Chweu 66 44 5 69 646 5 69 77 4 095 069 6 70 6 0% 085 49 45% Umjindi 0 408 5 595 800 7 46 04 8 840 850 9 5 97 97 569 6 545 04 8 009 606 00 4 07 96% 587 9 77% SUB TOTAL 574 0 0 87 0 585 000 8 70 0 0 9 90 94 509 86 06 854 44 78 768 88 54 00 864 68 07 850 75 55 0 54 68% 5 950 59 0% TOTAL 67 9 7 8 8 785 000 6 58 894 70 50 08 8 04 67 70 765 78 768 4 7 070 89 807 0 57 90 875 5 947 64% 0 05 5 57

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 6 Ehlanzeni District The district and its local Municipalities recorded capital expenditure amounting to R, 55billion or per cent out of the capital expenditure adjusted budget of R, 850 billion. respectively. Mbombela Capital expenditure has been a challenge with the hosting of the 00 soccer world cup. The municipality as a host city focused mainly on the provision of the stadium infrastructure to host successfully event Nkangala District The total original/adjusted budget for Nkangala district municipalitiesõ amounts to R88M in 00.the ties except for Steve Tshwete spent less that the benchmark. Gert Sibande District The total original/adjusted budget for Gert Sibande District municipalitiesõ amounts to R44M in 00. Capital expenditure is of concern as all municipalities in this district have much less than the benchmarks, except district over spend by 8%.for the period under review while Lekwa and for Dr Pixley PROVINCIAL SUMMARY The analysis indicates that all municipalities in the province have a total original/adjusted capital Ehlanzeni District Municipalities spent 68% followed by Gert Sibande District municipalities spent lowed water and sanitation at 6%, roads and pavements at % and housing at 0.04% respectively. 58

6 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 UPPER LIMITS OF SALARIES, ALLOWANCES AND BENEFITS OF DIFFERENT MEMBERS OF MU NICIPAL COUNCILS Section 67 of MFMA has a major impact on the remuneration of political office bearers. It stipulates that political officebearers may only be remunerated within the framework of the Remuneration of Public Office Bearers Act and Section 9 (4) of the Constitution. The upper limit of salaries and allowances of the different members of municipal councils shall from time to time be determined by the minister for cooperative governance and traditional affairs, After consultation with the member of the executive council (MEC) responsible for local govt in each province, by notice in the Gazette after taking into considerationthe matters in paragraphs (a) to (i) of S7() of the act, determine the upper limits of the salaries, allowances and benefits of different members of municipal councils as set out in the schedule with effect from July 00 in respect of that municipal council The salary and allowances of a member of a municipal council is determined by that municipal council by resolution of supporting vote of a majority of its members. In consultation with the member of executive council responsible for local government in the province concern, having regard to the upper limit as set out in the said notice, the financial year of municipal councils and the affordability of municipal councils to pay within the different levels of remuneration of councils from the budget of a municipality concerned. The purpose of implementing the Government Notice, in consultation with means that municipalities will require the concurrence of the MEC responsible for local government in the province MUNICIPALITY GRADE 008009 GRADE 00900 Government Notice Government Notice R4 R9 Promulgated 8 Promulgated Dec 009 Dec 008 Gert Sibande DM 4 Upper limits approved 5 Upper limits approved Albert Luthuli Upper limits approved Upper limits approved Msukaligwa Upper limits approved Upper limits approved Lekwa Upper limits approved Upper limits approved Dipaleseng Upper limits approved Upper limits approved Mkhondo Upper limits approved Upper limits approved Pixley Ica Seme Upper limits approved Upper limits approved Govan Mbeki 4 Upper limits approved 4 Upper limits approved Nkangala DM 4 Upper limits approved 5 Upper limits approved Delmas Upper limits approved Upper limits approved Emalahleni 4 Upper limits approved 4 Upper limits approved Steve Tshwete 4 Upper limits approved 4 Upper limits approved Thembisile Hani Upper limits approved Upper limits approved Emakhazeni Upper limits approved Upper limits approved Dr JS Moroka Upper limits approved Upper limits approved Ehlanzeni DM 4 Upper limits approved 4 Upper limits approved Thaba Chweu Upper limits approved Upper limits approved Mbornbela 4 Upper limits approved 4 Upper limits approved Bushbuckridge Upper limits approved Upper limits approved Umjindi Upper limits approved Upper limits approved Nkomazi 4 Upper limits approved 4 Upper limits approved The table above indicates that municipalities (00%) in 00 and 009 received concurrence of upper limits of salaries, benefits and allowances of municipal councilors by the MEC in terms of Government Notice R4 promulgated on December 009. The analysis indicates that the two Districts has improved in terms of the grading from grade 4 to grade 5 Department of Co operator Gam/name and Tonlitional aiturt 0 009/00 Consolniaract Atonuat Municipal ttntonnance Repon

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 6 MUNICIPAL SYSTEMS IMPROVEMENT GRANT The Municipal Systems Improvement Grant (MSIG) is a conditional Grant directed to selected Local and District Municipalities. The purpose of the grant is to support municipalities in implementing new systems as provided in the Municipal Systems Act, Municipal Structures Act and other related local government policy and legislation so that they can carry mandated functions effectively. Name Of Municipality 00900 008009 Allocation Expenditure % Allocation Expenditure % Gert Sibande R 00 000 R 00 000 00% R 75 000 R750 000 00% Albert Luthuli R 75 000 R 75 000 00% R 75 000 R75 000 00% Msukaligwa R 75 000 R 75 000 00% R 75 000 R75 000 00% Mkhondo R 75 000 R 0 0% R 75 000 R75 000 00% Pixley ka Seme R 75 000 R 50 009 7% R 75 000 R75 000 00% Lekwa R 75 000 R 75 000 00% R 75 000 R75 000 00% Dipaleseng R 75 000 R 75 000 00% R 75 000 R75 000 00% Govan Mbeki R 75 000 R 75 000 00% Total R 6 445 000 R 5 56 767 8 Nkangala Dm R 75 000 R 75 000 00% Victor Khanye R 00 000 R 00 000 00% Emalahleni R 75 000 R 75 000 00% Steve Tshwete R 75 000 R 6 057 85% Emakhazeni R 75 000 R 78 898 98% Thembisile R 75 000 R 75 000 00% Dr JS Moroka R 500 000 R 500 000 00% Total R 5 475 000 R 5 8 56 95% Ehlanzeni District R 75 000 R 75 000 00% Thaba Chweu R 75 000 R 95 979 7% Mbombela R 00 000 R 00 000 00% Umjindi R 75 000 R 75 000 00% Nkomazi R 75 000 R 75 000 00% Bushbuckridge R 75 000 R 00 000 7% Total R 4 975 000 R 900 979 78% SubTotal 6 895 000 R 4 4 00 85% R 75 000 R75 000 00% R 5 880 000 R5 50 00 94% R 75 000 75 000 00% R 75 000 75 000 00% R 75 000 75 000 07% R 75 000 75 000 00% R 75 000 75 000 00% R 75 000 75 000 00% R 75 000 75 000 00% 5 45 000 5 45 000 00% 75 000 75 000 00% 75 000 75 000 00% R 75 000 75 000 00% R 75 000 75 000 00% R 75 000 75 000 00% R 75 000 75 000 00% R 4 40 000 R4 40 000 00% R5 45 000 5 45 000 00% Steve Tshwete The total unspent amount of R6 057 would be utilized towards the Erf master project during the Source: monthly report. 60

64 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 ESTABLISHMENT OF INTERNAL AUDIT UNITS AND COMMITTEES S65 and S66 of the MFMA indicates that each municipality must have and internal audit unit and audit committee MUNICIPALITY AUDIT COMMITTEE NUMBER OF MEMBERS INTERNAL AUDIT UNIT Gert Sibande Shared service Yes Albert Luthuli Yes 4 Yes Msukaligwa Shared service Post advertised Mkhondo Shared service Post advertised Pixley ka Seme Shared service Yes Lekwa Shared service Post advertised Dipaleseng Yes Yes Govan Mbeki Yes 4 Yes NKANGALA Shared Service 4 Yes Delmas Shared Service 4 Yes Emalahleni Shared Service 4 Yes Steve Tshwete Shared Service 4 Yes Emakhazeni Shared Service 4 Yes Thembisile Shared Service 4 Yes Dr JS Moroka Shared Service 4 Yes EHLANZENI Yes Yes Thaba Chweu Yes Yes (suspended) Mbombela Yes 4 Yes Umjindi Yes 5 Yes Nkomazi Yes 4 Yes Bushbuckridge Yes Yes 6

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 65 whose Internal Auditor was suspended and there are therefore no audit reports for the committee to review. Meetings are held quarterly or as and when a need arises for all the other municipalities; cated above are unhappy about the situation as they feel that special attention is not given to the individual municipalities with a shared audit committee. They are in the process of appointing their own audit committees; dressed with the new councilors to be elected as well as the establishment of MPACÕs IMPLEMENTATION OF THE MUNICIPAL PROPERTY RATES ACT nicipality may impose rates on property. on property. 00 (No. 56 of 00) the municipal manager must ensure that the municipality has and implements a rates policy. tion on July 005 and immediately replaces the old system of property valuation and rating based on the old provincial ordinances. In line with the act, municipalities have to implement a transparent and fair system of exemptions, reductions and rebates through rating policies and fair and equitable valuation methods of properties 5. The enactment of (MPRA) in 005 has created challenges for municipalities in the Province. The challenges range from Cost of rural areas with little expectation of revenue, Undervalued properties are subsidized by properties correctly valued which affects the determination of tariffs, Late submissions of the draft roll resulted to lack of corrections to the roll, Lack of Compliance with rates account, objections not addressed, extent of properties are incorrect, Street names are incorrect. VALUATION ROLLS decide, but in total not for more than four years 6

66 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 VALUATION ROLLS SUMMARY Extension of validity of valuation rolls: 008009 00900 MPRA % of LMÕs Extension of validity of valuation rolls: MPRA % of LMÕs Valuation rolls extended 0 Never valued 4 0 Late application 0 0 Compiled Not 6 84% implemented Compiled and implemented 6% 9 00% Expired TOTAL ANALYSED 9 9 00% 9 9 00% (84%) valuation roll expired and no further extension was granted in terms of a repealed law by MEC A further analysis for the two periods indicates the following improvements in the compilation of a A level analysis indicated that all 8 local municipalities and one district in the province have comply with the provision of the act and meet the MPRA deadline. improvement in meeting the MPRA deadline has been achieved. MUNICIPAL PROPERTY RATES POLICY ITS APPROVAL BY COUNCIL municipalities to develop and adopt a rates policy on the levying of rates on rateable property in the municipality Subsection further indicate that a rates policy adopted in terms of subsection takes effect on the the municipal council in terms of section 6() of the MFMA 6

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 67 MUNICIPALITY 008009 00900 Draft policy Final policy Draft policy Final policy Albert Luthuli Approved policy Final policy Approved policy Final policy Bushbuckridge Draft policy None Approved policy Final policy Delmas Draft policy None Approved policy Final policy Dipaleseng Draft policy None Approved policy Final policy Dr J S Moroka Draft policy None Approved policy Final policy Emakhazeni Draft policy None Approved policy Final policy Emalahleni Draft policy None Approved policy Final policy Govan Mbeki Approved policy Final policy Approved policy Final policy Lekwa Draft policy None Approved policy Final policy Mbombela Draft policy None Approved policy Final policy Mkhondo Draft policy None Approved policy Final policy Msukaligwa Approved policy Final policy Approved policy Final policy Nkomazi Draft policy None Approved policy Final policy Pixley ka Seme Draft policy None Approved policy Final policy Steve Tshwete Draft policy None Approved policy Final policy Thaba Chweu Draft policy None Approved policy Final policy Thembisile Hani Draft policy None Approved policy Final policy Umjindi Draft policy None Approved policy Final policy Ehlanzeni DC None None Approved policy Final policy SUMMARY: PROPERTY RATES POLICY MUNICIPALITY 008009 00900 NO. % NO. % Final Policy 6% 9 00% Draft rates policy 6 84% 0 9 00% 9 00%. In 008 6 or 84% of rates policies were developed as drafts by municipalities not ready for implementation and in 00 no draft rates policies. 64

68 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 MUNICIPAL RATES BYLAWS S6 of MPRA requires that a municipality must adopt bylaws to give effect to the implementation of its rates policy MUNICIPALITY 008009 00900 DRAFT BYLAWS FINAL BYLAWS DRAFT BYLAWS FINAL BYLAWS Albert Luthuli Approved bylaws Final by laws Approved bylaws Final by laws Bushbuckridge Draft bylaws None Approved bylaws Final by laws Delmas Draft bylaws None Approved bylaws Final by laws Dipaleseng Draft bylaws None Approved bylaws Final by laws Dr J S Moroka Draft bylaws None Approved bylaws Final by laws Emakhazeni Draft bylaws None Approved bylaws Final by laws Emalahleni Draft bylaws None Approved bylaws Final by laws Govan Mbeki Approved bylaws Final bylaws Approved bylaws Final by laws Lekwa Draft bylaws None Approved bylaws Final by laws Mbombela Draft bylaws None Approved bylaws Final by laws Mkhondo Draft bylaws None Approved bylaws Final by laws Msukaligwa Approved bylaws Final bylaws Approved bylaws Final by laws Nkomazi Draft bylaws None Approved bylaws Final by laws Pixley ka Seme Draft bylaws None Approved bylaws Final by laws Steve Tshwete Draft bylaws None Approved bylaws Final by laws Thaba Chweu Draft bylaws None Approved bylaws Final by laws Thembisile Hani Draft bylaws None Approved bylaws Final by laws Umjindi Draft bylaws None Approved bylaws Final by laws Ehlanzeni DC Draft bylaws None Approved bylaws Final by laws oped rates bylaws to give effect to the rates policies, approved by council for implementation st 65

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 69 ESTABLISHMENT OF VALUATION APPEAL BOARD S56() states that the MEC for Local Government must, by notice in the provincial Gazette, establish as many valuation appeal board in the province as may be necessary, but not fewer than one in each district municipality and each metropolitan municipality 008009 00900 VAB Board members Board members GERT SIBANDE DC Established Established NKANGALA DC Not established Established EHLANZENI DC Not established Established SUMMARY OF VALUATION APPEAL BOARD MUNICIPALITY 007008 008009 NO. %. NO. % Established 00 Not established 67 0 0 8 8 9 00% NKANGALA DISTRICT Mr. David Sewela Attorney Chair Person Mr. Herman Brandt Professional Valuer Member Ms. Ella Prinsloo AttorneyMember Mr. Molefi Kubuzie Professional Associated ValuerMember Mr. Glen Tweedie Principal estate agentmember EHLANZENI DISTRICT Mr. MM Labe Attorney Chair Person Mr. PJ De Beer Attorney Member Mr. BR Makamo Estate Agent Member Mr. H Van Coller Professional Valuer Member Ms. L Visagie Estate Agent Member Two DCÕs (00%) Valuation Appeal Board for Nkangala and Ehlanzeni have been established by notice in the provincial gazette no. 0 candidates appointed for each districts to serve as board members by the MEC in accordance with sec 56 () of MPRA. The board is fully functioning; eleven meetings for valuation appeal board members were convened in three districts. The MPRA requirements have been achieved. 66

70 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 CHALLENGES EXPERIENCED IN MUNICIPAL FINANCIAL VIABILITY Challenges emanating from implementation of the MPRA of tariffs revenue e.g. churches are categorized as residential REVENUE MANAGEMENT Emalahleni effective cuff off actions, to change the credit control policy and bylaws to ensure credit control and debts collection procedures are in line with the national credit act as well as the magistrate tion of the national credit act e.g. correct legal procedures and to put measures in place to avoid reckless crediting of consumers, Debt managementunmetered areas, Understanding of GRAP by staff. ` Emakhazeni from the withholding of conditional and unconditional transfers due to the municipality, but also due to the global economic downturn. But, the Municipality is still a growing concern. Bushbuckridge The main increase in debts is the levying of rates. In line with the AG reports, there is a concern that the increasing level of debtors may undermine the liquidity of the municipality. The underlying cause of this may be the capacity to aggressively develop and implement practicable cash collection and billing strategies. Nkomazi Lacks proper billing of all revenue potential villages. Larger population stays in the communal land where they donõt have title deeds therefore there must be a speeding up of land tenure upgrade application for other areas that have potential of revenue collection so that property rates can be implemented in rural areas. CHALLENGES IN THE ADMINISTRATION OF THE GRANT not being able to ascertain whether the projects have been implemented or not. 67

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 7 ing their billing systems. 4.. Phasing out of Regional Service Council levies (RSC) that an appropriate replacement has been found. The main challenge however, is to ensure that the replacement source for RSC will be more or less equal or even more than the current and future RSC of free basic services. This function is funded through equitable share, but evidence from municipalities suggests that the funding is not adequate. The provision of new housing goes beyond the allocations resulting in unfunded mandates. 4..4 Intergovernmental relations structures (IGR) 4. Conclusion palities. better revenue collection mechanisms and revenue enhancement programs. There is a need for a col change the situation. Best Improved Project Consolidate Municipality Award as well as Best Performing Local Municipal Financial Viability. 68

7 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 CHAPTER 5 GOOD GOVERNANCE AND PUBLIC PARTICIPATION 69

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 7 5. Introduction A key element of good governance is accountability to the community and other stakeholders as well as the Municipal CouncilÕs oversight function. For municipalities to be properly accountable to service users and relevant stakeholders they should have proper systems, procedures and processes in place to allow for maximum participation in setting both service priorities and in evaluating the level of services provided. Effective systems and controls must then also be in place to ensure proper and accountable use of public monies and other resources to deliver against those priorities. For this reason this Chapter 5. Progress 5.. Ward Committees and deployment of Community Development Workers Ward Committees and CDWs represent an innovative and progressive approach to participatory Governance in Local Government. A Ward Committee is a structure created to assist democratically ery and sustainable development. strategic interventions necessary for development. principle of transparency. them accountable for improved governance and service delivery. IDP and LED of the municipality. 70

74 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 CDWS ARE ALSO DEPLOYED IN THE WARDS OF EACH LOCAL MUNICIPALITY DISTRICT EHLANZENI NKANGALA MUNICIPALITY NUMBER OF WARDS WARD COMMITT EES CDWÕS DEPLOYED Bushbuckridge 4 4 44 Mbombela 6 6 46 Nkomazi 0 0 4 Thaba Chweu 5 Umjindi 7 7 7 TOTAL 9 9 54 Delmas 8 8 6 Dr J S Moroka 0 0 Emakhazeni 7 7 07 Emalahleni 5 Steve Tshwete 4 4 8 Thembisile Hani 0 0 TOTAL 9 COMMENT A summit was held early in February 00 to outline roles and responsibilities of ward committees, ward councilors and CDWs it was attended by 00 people. A public Participation summit was organized in March 0 to outline roles and responsibilities of all stakeholders in Public Participation, Councilors, CDWs Ward Committees and Traditional Leaders. Albert Luthuli 7 Dipaleseng 6 6 5 Lekwa 4 4 Mkhondo 5 5 9 Msukaligwa 6 6 4 Pixley ka Seme 8 Govan Mbeki 8 TOTAL 5 5 PROVINCIAL TOTAL 65 65 86 GERT SIBANDE Gert Sibande District organized a Public Participation Summit in June 00 to outline roles and responsibilities of ward councilors, CDWs and Ward Committees. 5.. Intergovernmental relations The Intergovernmental Relations (IGR) Unit in the Department of Cooperative Governance and Tra and maintained. It should be noted that during the year in review, the country just came out of the elections and there has been a lot of euphoria and expectations by government from various spheres. At the point in time new cadres of leadership just came in and as normal a lot of capacity programme had to be followed. IGR Structures were once again established, strengthened and continued to be monitored so that they can have effect and contribute to municipal governance The District MayorÕs Forum continued to be chaired by their respective District Mayors, the Depart chaired by the DirectorGeneral and attended by Municipal Managers and South African Local Government Association (Salga), MUNIMEC chaired by the MEC responsible for local government in the Province and attended by all Mayors, Salga and sector department as per the invitation of the MEC. It should also be noted that MUNIMEC for Local Government was later combined with the Department of Finance and Chaired by both the MECÕs. During this period in review, it should be noted that the unit also assisted in the process of ward delimitation with Municipal Demarcation Board in the Province. The activity was completed in 00, and the purpose was to prepare wards for the local government elections for 0. 7

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 75 5.. Anticorruption adopted Anticorruption strategy. Meetings would be scheduled with the Municipal Manager and other etc.). The municipalities would be provided with an example of an Anticorruption strategy. They will then be requested to customise the strategy according to their circumstances and needs. 5..4 Traditional leadership Traditional authorities were disestablished as per prescription of the Traditional Leadership and Gov Traditional Leaders were also established for each of the three Districts as per the requirements of the Thirty three cultural functions were successfully held throughout the province so as to promote and safeguard the provinceõs rich cultural heritage. Traditional leaders were workshoped on the Traditional Leadership and Governance Act, the Communal Land Rights Act as well as the Public Finance Management Act. Traditional leaders were also consulted on the Ingoma Bill and the Bill on the suppression of witchcraft. traditional council. 5..5 Presidential and Ministerial Izimbizo PLEASE INCLUDE 009/0 INFORMATION NOT 005/006 Both the President and the Deputy President of South Africa visited Gert Sibande, Nkangala and Ehlanzeni District municipalities as part of the Presidential Imbizo in 005/006. A number of resolutions were taken at these imbizoõs. 44 issues raised nineteen were dealt with and closed. The Deputy President visited Nkangala District in 005 and twelve issues were raised of which six were dealt with and closed. The Deputy President the Districts with the aim of identifying the responsible sectors that are not attending to the matters as raised. Progress is being made in resolving these issues. Continuous followups are taking place with the relevant sector departments. 7

76 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 5..6 Standard operating procedures and delegations 5. Challenges experienced in good governance and public participation most municipalities (which municipalities). schedule of meetings. alignment planning seriously in order to enhance service delivery. resentatives additional funds. year and this caused an over expenditure on salary bills. leaders sought for the Bills to be drafted by those who practice them. 7

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 77 bers of the MohlalaMorudi tribe wanted to stop the inauguration, stating that a female, according to their culture, cannot be the head of a tribe. 5.4 Interventions by national and provincial government, SALGA and other government agencies cilors to follow their meeting schedules. teeõs interims of their meeting schedules and disciplinary action should be taken if they fail to call meetings. Ward Committee members across the Province. o o o o o o o Induction programme Community Based Planning Public Participation in Local Governance Core Municipal Processes and Ward CommitteeÕs Role in (IDP, LED, and Service Delivery Project Management Community Diversity Meeting Procedures 5.5 Conclusion 74

78 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 CHAPTER 6 CROSSCUTTING INTERVENTIONS 75

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 79.6 CROSS ÐC UTTING INTERVENTIONS.6. integrated Development Planning (IDPÕS) The IDP analysis for this District was done earlier than for the other two Districts within the Province. This was done due to the fact that this district adopts its IDPs end of March each year. In order to ensure proval at the end of March. The district, as its culture, adopts as part of its framework that, the month of March is the last month for consideration of any public comment or stakeholder participation and The department of Local Government together with the National Department of Provincial and Local Government managed to mobilise stakeholders from both the National and Provincial Sector depart districts was somewhat different to the one taken in Nkangala District. This change in approach can be attributed to inputs made by the DPLG based on experiences of IDP Analysis in other provinces. quired according to the template IDP Capacity rankings in municipalities The summaries of how the province has performed in general are given below. Municipalities were 76

80 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 GERT SIBANDE DISTRICT MUNICIPALITY RATINGS 009 Spatial Rationale Service Delivery Local Economic Development Financial Viability Institutional Arrangements 0 GertSibande Albert Luthuli Msukaligwa DM a Mkhondo Pixley ka Govan Mbeki Dipaliseng Seme Good Governance From the table above it can be seen that the District as a whole is doing quite well in terms of Good Governance. Msukaligwa, Lekwa and Govan Mbeki are quite strong when it comes to Local Economic Development while Govan Mbeki, Gert Sibande District and Mkhondo municipalities display good Spatial Rationale. EDM RATINGS 009 The picture depicted below shows a district in trouble. The district as a whole has a number of chal all the mentioned municipalities scored slightly above, and LED in Ehlanzeni and Thaba Chweu Municipalities where both municipalities scored 4 and 5 respectively. Mbombela municipality did not submit their IDP on time and as a result it was not assessed. The municipality only submitted their IDP after the date of assessment. The only team that managed to do analysis on the municipality was the Spatial Rationale Team, the assessment was based on the Spatial Development Framework only. 5 4 0 I Ehlanzeni DM Umjindi Mbombela Thaba Chweu Nkomazi Bushbuckridge Spatial Rationale Service Delivery Local Economic Development Financial Viability Institutional Arrangements Good Governance The results above indicate that this District needs urgent intervention by Province. The Province must avail resources to rescue the municipalities from further downfall. 77

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 8 NKANGALA DISTRICT RATINGS 009 from the table that there are a couple of municipalities which had a low score on LED and it can also be noted that the institutional arrangements seem to be a challenge in all the municipalities except for in the District municipality itself. 5 4.5 4.5.5.5 0.5 Spatial Rationale Service Delivery Local Economic Development Financial Viability Institutional Arrangements Good Governance 0 Nkangala DM Emalahleni Emakhazeni Thembisile Dr.IS Moroka Delmas Steve Tshwete OVERALL SCORES OF ALL MUNICIPALITIES 4.5 tn 4.5 0.5 It.5 u in 0.5 0 (," Overall Score/ Credibility Rating 4% ;v A 4, tp c,e.i (a, N.* 0....40 /0 4, 4. <; ep e 4?,,be Off'. 4:4 NI. 4,,oe, e 4:;) sse A.e.,,t, <5,,,e, 4e,.,40..,. v,csc 44 cs,;:v 6e,,,>".,".` sy <.4s `5" kt 'lk \. <..b e 0.,,,, <o,,., 4z, i,b. * e.c).c`,,..? \) kv Z + os) & IP c' A* ova.0 _j te 4,$(' '<<s Ncl.'Z' W IC' Xs.5.') ()C ts\' 4e' :i C, 'Cv 0.<'L i'. N'' g cis?' 45s IP Name of Municipality COMPARISONS WITH 008 RATINGS To get a sense of whether municipalities are making progress or not in terms of improving their cred 78

8 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 SPATIAL RATIONALE Gert Sibande DM Albert Luthuli Msukaligwa Albert Luthuli Msukaligwa Le kwa Mkhondo Pixley Ica Seme Govan Mbeki Dipaliseng Nkangala DM Emalahleni Emakhazeni Thembisile Dr JS Moroka Delmas Steve Tshwete Ehlanzeni DM Umjindi Mbombela Thaba Chweu Nkomazi Bushbuckridge P U, N trt (.0 vi 4 Ui P N P) o ( VI rs.) ( U.) VI 4z Ul ME Lekwa Mkhondo Pixley ka Seme Govan Mbeki Dipaliseng Nkangala DM Emalahleni Emakhazeni Thembisile Dr JS Moroka Delmas Steve Tshwete Ehlanzeni DM Umjindi Mbombela ME Thaba Chweu Nkomazi Bushbuckridge to last year. This can be attributed to the fact that the SDFs assessed this year were reviewed in the last gone up a bit compared to last year, except for Delmas which has lost a few points this year compared to last year. SERVICE DELIVERY The general observation from the above comparison is that there seems to be a drop in standard in ligwa and Ehlanzeni District Municipality, the presence of the Technical Managers from these municipalities at the Analysis may have had a positive contribution because where assessors needed clarity on certain issues the representatives from the municipality could answer. 79

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 8 LOCAL ECONOMIC DEVELOPMENT the last year. Bushbuckridge and Delmas Municipalities are a cause for concern; both municipalities done last year, the municipality had just been incorporated to Mpumalanga province from Limpopo and the LED Strategy was good but aligned to Limpopo province. To this date the municipality has not revised its LED Strategy in line with the Mpumalanga provincial policies. With Delmas, the IDP document submitted for analysis was silent on LED issues and the document was in very early draft stages. FINANCIAL VIABILITY Gert Sibande.. Albert Luthuli Msukaligwa Lekwa M khondo Pixley Ica Seme Govan Mbeki Dipaliseng Nkangala DM Emalahleni Emakhazeni Thembisile Dr JS Moroka Delmas _ Steve Tshwete Ehlanzeni DM Umjindi Mbombe la Thaba Chweu Nkomazi Bushbuckridge!''') 0 Ul NJ Ul UJ Ul Crl <. zw 0 CO aged to keep this status over the years. It is also notable that there has also been an improvement in 80

84 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 P N h' W :P Ui (A) ul Gert Sibande DM Albert Luthuli Msukaligwa Lekwa Mkhondo Pixley Ica Seme Govan Mbeki Dipaliseng Nkangala DM Emalahleni Emakhazeni Thembisile DrJS Moroka Delmas Steve Tshwete Ehlanzeni DM Umjindi Mbombela Thaba Chweu Nkomazi (k) 4=. to CT) Gert Sibande DM Albert Luthuli Msukaligwa Le kwa Mkhondo Pixley ka Seme Govan Mbeki Dipaliseng Nkangala DM Emalahleni Emakhaze ni Thembisile Dr JS Moroka Delmas Steve Tshwete Ehlanzeni DM Umjindi Mbonnbe la k Thaba Chweu Nkomazi Bushbuckridge INSTITUTIONAL ARRANGEMENTS Bushbuckridge > 5 g. T. 5 d g 0?, g h The Gert Sibande family of municipalities has shown a great improvement when it come to good governance issues. The Nkangala family only shows a slight improvement while the Ehlanzeni has drastically regressed this year. It is only Bushbuckridge in the whole family that has showed some improvement. ridge municipality which has shown some improvement in this current year. o ao 8

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 85 OVERALL SCORE 008 Gert Sibande DM Albert Luthuli Msukaligwa Lel<wa Mkhondo Pixley ka Seme Govan Mbeki Dipaliseng Nkangala DM Emalahle ni Emakhazeni Thembisile Dr JS Moroka Delmas Steve Tshwete Ehlanzeni DM Umjindi Mbombela Thaba Chweu Nkomazi Bushbuckridge 0 UJ 0 (./ Ul Lri 0 C CD a) 0 CD O 00 OVERALL SCORE / CREDIBILTY RATING 008 & 009 4.5 4.5 <s.5.5 0.5 0 O,(,> 44 s..,4 4,,"( \q,.)\ so,c),oz.4 et Fi '"". '7) % cs\ \e, sta..\ \?, be,.' \ c.) \4' \ 0 0 (0 ' <L s ( C e e Oda 'D " e C 0 o 0..cceP \i) A.,b 0 4\c' \e, o N4 a s<, (t, Overall Score 09 Overall Score 08 8

86 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 Key Performance Area Identified gaps in the 0090 Draft IDPs Sanitation) to persuade and convince them to provide water to their WWTW to which connection is considered are able to handle the additional demands. is a major problem; Illegal and ad hoc dumping by communities. Licensing The vast majority of waste disposal sites are not licensed. obvious that houses will be built years before associated infrastructure is build. Basic Services and Infrastructure (Human Settlement) Environmental Issues Human Resource and Institutional Arrangements A summary of the existing water and sanitation infrastructure backlogs within the various towns need to be included / incorporated more comprehensively under the Infrastructure Analysis Section of the IDP. A summary of the infrastructure backlogs highlighted in the Master Plans and WSDP to be incorporated.. No linkages between housing and urban renewal.. Housing backlogs and associated issues are not well reflected. No integration between sector plans, such as WSMP, ITP, etc. 4. Municipality priorities are not aligned to community priority needs 5. MIG is not prioritized to serve the indigent ants. On the same breath it can also be said that use of A better understanding of the environmental issues and particularly the priorities and risk aspects must be identified and spatial strategies developed to mitigate these risks Objectives and strategies are not linked to action plans. of urgency (e.g. IDP Manager and HR Manager). Some Municipalities do not have OPMS framework. DLG should assist municipalities in clarifying the roles and responsibilities of full time politicians and Administrators. There was no proper consultation with communities and stakeholders due to political instability.(pixley) LED Lack clarity on the difference between an LED strategy, plan strategies dating back from 00. informing spatial and economic investment choices No functional LED Forums for intergovernmental dialogue Noevidence on IDPs and Lack of communication, collaboration Financial Viability No room for sharing good practices between the Districts and its locals. The Districts and its local municipalitiesõ budgets are not aligned. Majority of the municipalities do not indicate any evidence of strategies to deal with qualified audit reports and adverse comments from the Auditor General. Essential information on the IDP document such as financial plans was missing. National and Provincial allocations are not reflected and utilized properly by the municipalities. Poor functioning of the IGR structures within the District i.e. CFOÕs forums etc. The majority of the municipalities have no clear financial Good Governance and Public Participation strategies. of the IDP document (Tableinvolvement The Municipalities to make use of the evaluation framework to add credibility of their IDPs (e.g. organogram, audit unit) 8

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 87 Status of the municipal sector plans A LIST OF AVAILABLE SECTOR PLANS/STRATEGY MUNICIPAL SECTOR PLANS MUNICIPALITIES SDF & LUMS & WSDP ITP HOUSING CIP IWMP YEAR YEAR Gert Sibande Y, 005 N Y Y Y N Albert Luthuli Y, 005 N N N N Dipaleseng Y, 008 N N N N Govan Mbeki Y, 006 N Y N N Y Lekwa Y, 009 N N N N Msukaligwa N Y N N Y Mkhondo N N Y N N Pixley Ka Seme N N N N Nkangala District Y N Emalahleni N Steve Tshwete N Emakhazeni N Victor Khanye N Dr JS Moroka N Thembisile Hani N Ehlanzeni District Y, 008 Y Y Y Y Mbombela Y, 007 Y N N N N N Draft to be finalized in 009/00 Umjindi Y, 009 Y N Y Y Y Nkomazi Y, 00 Y N Y Y Y Bushbuckridge Y, 005 Y N Y Y Y Thaba Chweu Y, 009 Y N Y Y Y The department had developed a Provincial IDP framework guide (IDP Road Map) which was meant to provide guidance for planning in the province. Municipalities are currently following the guideline as agreed upon during the Development Planning forum of the Province..6. DISASTER MANAGEMENT 6.. Introduction work of 005 is to ensure a uniform approach to disaster risk management in all spheres of government. Managing disasters requires government and people working together in a coordinated way through a coherent disaster management system. Municipalities in particular have an important primary response role to disaster management capabilities in place. Disaster management plans must be included in municipal IDPs. 84

88 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 In terms of the Disaster Management Act, District Municipalities are required to:. Establish and implement a framework for disaster management in the municipality aimed at ensuring an integrated and uniform approach to disaster management in its area after consultation with the local municipalities in its area.. Establish a fully functional disaster management centre;. Appoint a head of the centre; 4. Establish disaster management advisory forums; 5. Conduct disaster risk assessment; 6. Develop disaster management plans. Provide key performance indicators in respect of the various aspects of disaster management. 8. Application of cooperative governance on issues concerning disasters and disaster management among the spheres of government, and other related issues. 6.. Progress in the implementation of the Disaster Management Act Centre is completed. The other two districts centres will be accommodated in their new with the preparation of disaster risk reduction plans and strengthened the readiness for the 00 Football World Cup. from municipalities and departments (Unisa accreditation). strengthen buyin and commitment by all roleplayers to understand their accountability in terms of disaster management proach need to be developed and implemented. 85

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 89 PROVINCIAL DISASTER MANAGEMENT STATUS COMPARISON 008/009 vs 009/00 MUNICIPALIT Y Ehlanzeni District FRAM EWO RK FRAM EWOR K D M CENTR E D M CENTR E HEAD OF CENTR E HEAD OF CENTR E FORMA L STRUCT URE FORMA L STRUCT URE ADVIS ORY FORU M ADVIS ORY FORU M 08/09 09/0 08/09 09/0 08/09 09/0 08/09 09/0 08/09 09/0 08/0 9 X X X Mbombela * * X X * * Umjindi * * X X X X * * Nkomazi * * X X * * ThabaChweu * * X X * * Bushbuckridge * * X X X * * Nkangala X X X X X X X X X X District Steve Tshwete * * X X X X X * * Emalahleni * * X X X X X X * * Delmas * * X X X X X X * * Thembisile * * X X X X X X * * Dr JS Moroka * * X X X X X X * * Emakhazeni * * X X X X X X * * Gert Sibande District X X X X X X X X X X Govan Mbeki * * X X X X * * Lekwa * * X X X X X X * * Dipaleseng * * X X X X X X * * Msukaligwa * * X X X X * * Pixley Ka Seme * * X X X X * * Mkhondo * * X X X X * * Albert Luthuli * * X X X X X X * * DM PLA N DM PLA N 09/ 0 6.. Challenges experienced in the implementation of the Disaster Management Act T do its not adequate. or experience. is received from different people within the same municipality. 86

90 No. 4 PROVINCIAL GAZETTE EXTRAORDINARY, 6 JUNE 04 6.. Support by the Department of Local Government and DPLG..6.4 Realigned municipalities.6.5 Urban and Rural Nodes No report will be provided in this area.6.6 Municipal Performance Excellence (Vuna) awards No report will be provided in this area 87

BUITENGEWONE PROVINSIALE KOERANT, 6 JUNIE 04 No. 4 9 CHAPTER 7 PERFORMANCE MONITORING, MONITORING & EVALUATION: OUTLOOK 007 0 88