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1
OUTLINE OF PRESENTATION
1.Purpose of Presentation
2.Departmental Audit Outcomes
3.Overview of Municipalities
4.Status of Municipalities as per Portfolio
Committee’s Focus Areas
5.Challenges
6.Conclusion
2
1. PURPOSE OF PRESENTATION
•To share information on the state of governance in the 32 municipalities of the Northern Cape, with a special focus on the challenges and interventions towards achieving Clean Audits by 2014.
•As requested by the Portfolio Committee, the presentation will cover the following focus areas:- Governance, Financial Management, Service Delivery, Bulk Infrastructure, and Corruption.
3
2. DEPARTMENTAL AUDIT OUTCOMES
Over the last 3 years, Department of Cooperative
Governance, Human Settlements and Traditional Affairs
(COGHSTA) achieved the following audit outcomes:
2011/12 - Unqualified
2010/11 - Qualified •Coghsta was qualified on Assets and Housing Grant due to Municipalities not following Supply Chain Management Processes
2009/10 - Unqualified4
2. DEPARTMENTAL AUDIT OUTCOMES
COGHSTA’s interventions to facilitate a clean audit
within the department for 2012/13 and going forward
towards 2014, involves the following:
1.Implementing an Audit Improvement Plan
2.Jointly with AG, monitor the implementation of
Coghsta’s Audit Improvement Plan
3.Implementing a Risk Management Plan
4.Jointly with AG, monitoring the effective
implementation of COGHSTA’s Internal Controls
5.Full cooperation with the Auditor-General during the
audit process 5
Northern Cape has 5 District Municipalities and 27 Local Municipalities categorised as follows:
Category B1
Local Municipalities with large budgets and secondary cities
Sol Plaatje (Kimberley)
Category B2
Local Municipalities with a large town as a core
//Khara Hais (Upington)
Category B3
Local Municipalities with small towns, with relatively small population and significant proportion of urban population but with no large town as a core
24 other Local Municipalities i.e. Magareng, Phokwane, Dikgatlong, !Kheis, Kai! Garib, Kgatelopele, Tsantsabane, Mier, Ga-Segonyana, Gamagara, Emthanjeni, Kareeberg, Umsobomvu, Siyancuma, Thembelihle, Siyathemba, Ubuntu, Renosterberg, Nama Khoi, Richtersveld, Kamiesberg, Karoo Hoogland, Hantam and Khai-Ma
6
3. OVERVIEW OF NORTHERN CAPE MUNICIPALITIES
Northern Cape has 5 District Municipalities and 27 Local Municipalities categorised as follows:
Category
B4
Local Municipalities which
are mainly rural with
communal tenure and with,
at most, one or two small
towns in their area
Joe Morolong
Category
C1
District Municipalities which
are not water service
authorities
• Francis Baard
• Pixley ka Seme
• Namakwa
• John Taolo Gaetsewe
• Siyanda7
3. OVERVIEW OF NORTHERN CAPE MUNICIPALITIES
4. MUNICIPALITIES IDENTIFIED FOR TARGETED SUPPORT
13 Local Municipalities are receiving targeted support from Northern Cape
COGHSTA and National DCOG with Local Government Turn-Around
Strategy (LGTAS),and 7 of these same municipalities are also receiving
support from the Municipal Infrastructure Support Agency (MISA):
8
Siyathemba Tsantsabane Magareng (MISA)
Gamagara (MISA)
Richtersveld !Kheis Renosterberg (MISA)
Ga-Segonyana (MISA)
Kamiesberg Kgatelopele Khai-Ma (MISA) Joe Morolong (MISA)
Mier (MISA)
John Taolo Gaetsewe District Municipality identified by National Cabinet as one of the 23 Rural Districts requiring support
5. STATUS OF MUNICIPALITIES AS PER PORTFOLIO COMMITTEE’S FOCUS AREAS
5.1 ENHANCING GOOD GOVERNANCEIGR STRUCTURES IN THE PROVINCE:•District IGR Forums:Chaired by Executive Mayors of District Municipalities; Mayors of Local Municipalities part of the District IGR; SALGA Northern Cape, All Regional Directors of Provincial Sector Departments part of District IGRs (Quarterly Meeting): ALL 5 DISTRICTS HAVE FULLY FUNCTIONAL IGRs
•MUN-MEC:Chaired by MEC for Local Government; all Executive Mayors and Mayors and Chairperson of SALGA Northern Cape part of MUN-MEC; Mayors attend with Municipal Managers and CFOs; All provincial sector departments invited to MUN-MEC meetings (Quarterly Meeting)
9
•Premier’s Inter-Governmental Forum:
Chaired by Premier and MEC for Local Government as alternate Chair; All MECs, Chaiperson of SALGA in the Province, Executive Mayors and Mayors, Director General, Provincial HoDs, CEO of SALGA in the Province, Municipal Managers and All National Sector Departments in the Province attend (Quarterly meeting)
10
Public Participation:
Districts Community Development Workers
Frances Baard 77
John Taolo Gaetsewe 49
Namakwa 46
Pixley ka Seme 61
Siyanda
TOTAL
48 281
11
• COMMUNITY DEVELOPMENT WORKERS:
Challenges with CDWs• Tension between CDWs and elected Ward Councillors
as well as Ward Committees due to the fact that ‘some’ CDWs behave as if they are elected public representative, hence they compete with elected Councillors
• Department is in the process of finalising appointment of CDW supervisors per municipalities
• CDW Supervisors to be assisted by Municipal CDW Mentors
12
STATE OF WARD COMMITTEES
• A total number of 5 Ward Committees have not been established in the following municipalities:
- Thembelihe Local Municipality : 2 wards - Karoo Hoogland Local Municipality : 2 wards - Kgatelopele Local Municipality : 1 ward
• Accredited training targeting 870 Ward Committee members was conducted in 12 municipalities funded by the European Union
• Training to other municipalities will follow soon
• Ward Committee members are being paid R1 000 p/m out of pocket expense
13
Ward Committees: MUNICIPALITY NO. OF WARDS FUNCTIONALITY
OUT OF POCKET/POLICY
Sol PlaatjeDikgatlongMagarengPhokwane
31 759
FunctionalFunctionalFunctionalFunctional
Yes, National GuidelineYes, National Guideline Yes, National Guideline
GamagaraGa-SegonyanaJoe Morolong
51315
FunctionalFunctionalFunctional
Yes Yes Review Process by Council
SiyathembaSiyancumaThembelihleRenosterbergKareebergUbuntuUmsobomvuEmthanjeni
46444457
FunctionalFunctional NoFunctional FunctionalFunctional FunctionalFunctional
YesYesNoNoYesYesYesYes
14
WARD COMMITTEES:
MUNICIPALITY NO. OF WARDS FUNCTIONALITY OUT OF POCKET/POLICY
NamaKhoiKamiesbergHantamKaroo HooglandKhai-MaRichtersveld
9454 44
FunctionalNoFunctionalNoFunctionalFunctional
Yes – No policy Yes – No policy Yes – No policy No – No policy in placeYes – Policy in placeYes – No Policy
KgatelopeleTsantsabane//KharaHaisKai GaribKheisMier
4 614944
NoNoFunctionalFunctionalFunctionalFunctional
No – No policyNo – No PolicyNo – No PolicyNo – No PolicyNo – No PolicyNo – No Policy
15
DISTRICTS WARDS ESTABLISHED OUTSTANDING
Frances Baard 52 52 0
John Taolo Gaetsewe
33 33 0
Namakwa 30 28 2 Karoo Hoogland
Pixley ka Seme 38 36 2 Thembelihle
Siyanda 41 40 1 Kgatelopele
WARD COMMITTEES – DISTRICT SUMMARY
Implementation of Municipal Turn Around Strategies
• All Northern Cape Municipalities have developed individual MTAS
• Municipal IDPs, Budgets and SDBIPs were integrated and adopted by all 32 municipalities
• Implementation of the IDP went hand-in-hand with ‘hands on support and Rapid Response’ support processes and leveraging of stakeholder support and reporting and monitoring;
• Municipalities report to District IGRs and MUN-MECs on the progress made regarding implementation of MTAS.
17
Section 139 Interventions:
•Since 1999 the Northern Cape Provincial Executive Council never invoked section 139
•The approach adopted by the Provincial Government is to provide support to the municipalities in their respective challenges they are encountering
18
5.2 FINANCIAL MANAGEMENTMunicipal Public Accounts Committees [MPACs]•31 of the 32 municipalities in the province have established MPACs: Khai-Ma LM has not yet established MPAC as it consists of 7 Councillors, 4 of these Councillors serve as Chairpersons in other committees excluding the Mayor. MEC has advised the Municipality to discuss the possible shared MPAC with Namakwa District Municipality •Although Karoo Hoogland LM has MPAC, it has not yet submitted Council Resolution to MEC•The Association of Public Accounts Committees (APAC), together with its strategic partners: Auditor General South Africa (AGSA), National Treasury (NT), Department of Cooperative Governance (DCoG) and SALGA with the Provincial Legislature, conducted training for all MPAC members on 16 – 18 April 2012 and 24 - 26 April 2012 respectively
19
Municipal Public Accounts Committees [MPACs]No Municipality MPACs Date MPAC
establishedMembership composition
Party affiliation of MPAC Chairperson
1 Frances Baard District Yes 3 October 2011 8 ANC
2 Sol Plaatje Yes June 2011 6 ANC3 Dikgatlong Yes 11 November 2011 3 ANC4 Magareng Yes 9 November 2011 4 ANC5 Phokwane Yes 28 November 2011 9 ANC6 John Taolo Gaetsewe District Yes 30 November 2011 6 ANC
7 Ga Segonyane Yes 29 November 2011 9 ANC8 Gamagara Yes 21 November 2011 5 ANC9 Joe Morolong Yes 24 November 2011 8 ANC
10 Emthanjeni Yes 2 July 2011 3 ANC11 Pixkey Ka Seme District Yes 31 October 2011 6 DA12 Kareeberg Yes 17 October 2011 3 ANC13 Siyancuma Yes 10 February 2012 5 ANC14 Siyathemba Yes 20 April 2012 3 ANC15 Renosterberg Yes 20 April 2012 4 DA
20
Municipal Public Accounts Committees No Municipality MPACs Date MPAC
establishedMembership composition
Party affiliation of MPAC Chairperson
16 Thembelihle Yes 16 February 2012 5 COPE17 Ubuntu Yes 30 March 2012 4 ANC18 Umsobomvu Yes 20 June 2012 5 COPE19 Namakwa District Yes 24 November 11 3 ANC20 Hantam Yes 1 December 2011 3 DA21 Kamiesberg Yes 29 May 2012 4 ANC22 Karoo Hoogland No Council Resolution
23 Khai – Ma No
24 Nama Khoi Yes 15 November 11 7 DA25 Richtersveld Yes 1 November 11 4 ANC26 Siyanda District Yes 6 December 2011 9 ANC27 Kai !Garib Yes 29 February 2012 5 ANC28 Khara Hais Yes 12 February 2012 9 ANC29 !Kheis Yes 28 November 11 5 ANC30 Kgatelopele Yes 22 May 2012 3 ANC31 Mier Yes 23 January 2012 3 ANC32 Tsantsabane Yes 17 October 11 5 ANC
21
MUNICIPAL AUDIT OUTCOMES
No Municipality 2010/11 2009/10 2008/091 Dikgatlong Disclaimer Disclaimer Disclaimer2 Frances Baard District Qualified Financially unqualified
with no mattersFinancially unqualified with no matters
3 Magareng Disclaimer Disclaimer Disclaimer4 Phokwane Disclaimer Disclaimer Disclaimer5 Sol Plaatjie Qualified Disclaimer Disclaimer6 Gamagara Financially unqualified with
mattersFinancially unqualified with matters
Qualified
7 Ga – Segonyana Disclaimer Disclaimer Disclaimer8 Joe Morolong Disclaimer Disclaimer Disclaimer9 John Taolo Gaetsewe
DistrictQualified Qualified Financially unqualified
with matters
10 Hantam Qualified Financially unqualified with matters
Qualified
11 Kamiesberg Disclaimer Disclaimer Disclaimer12 Karoo Hoogland Qualified Qualified Disclaimer13 Khai – Ma Financially unqualified with
mattersFinancially unqualified with matters
Financially unqualified with matters
14 Nama Khoi Disclaimer Disclaimer Disclaimer15 Namakwa District Financially unqualified with
mattersFinancially unqualified with matters
Financially unqualified with matters 22
MUNICIPAL AUDIT OUTCOMES
No Municipality 2010/11 2009/10 2008/0916 Richtersveld Financially unqualified with matters Financially unqualified
with mattersFinancially unqualified with matters
17 Emthanjeni Qualified Disclaimer Disclaimer18 Kareeberg Financially unqualified with matters Financially unqualified
with mattersFinancially unqualified with no matters
19 Pixley Ka Seme District
Financially unqualified with matters Qualified Qualified
20 Renosterberg AFS outstanding Disclaimer Disclaimer21 Siyancuma Disclaimer Disclaimer Disclaimer22 Siyathemba Disclaimer Disclaimer Disclaimer23 Thembelihle Disclaimer Disclaimer Disclaimer24 Ubuntu Disclaimer Qualified Disclaimer25 Umsobomvu Disclaimer Qualified Disclaimer26 Kai! Garib Audit report outstanding Disclaimer Disclaimer
27 Kgatelopele Disclaimer Qualified Disclaimer28 Khara Hais nqualified with matters nqualified with matters Qualified29 Kheis Disclaimer Disclaimer Disclaimer30 Mier Disclaimer Disclaimer Disclaimer31 Siyanda District Financially unqualified with matters Qualified Disclaimer
32 Tsantsabane Disclaimer Disclaimer Disclaimer23
SUMMARY : AUDIT OPINIONS
Audit Opinion 2010/11 2009/10 2008/09
Financially unqualified with no matters 0 1 2
Financially unqualified with other matters 8 7 4
Qualified 6 7 4
Disclaimer 16 17 22
Adverse 0 0 0
Total reported on 30 32 32
Audit report outstanding 2 0 0
Total number of municipalities 32 32 32
24
FUNCTIONALITY OF INTERNAL STRUCTURES
• Internal Audit- 27 of the 32 municipalities have internal audit
function in place;- 25 audit reports were verified to assess the
effectiveness of internal audits and it was noted that 14 internal audit did not comply to section 165 of MFMA while 11 complied;
- 7 audit reports of the following municipalities were not verified as they were not available at the time of completion of this report (Renosterberg, Siyancuma, Siyathemba, Kai !Garib, Kgatelopele, Mier, and Tsantsabane)
25
FUNCTIONALITY OF INTERNAL AUDIT
NO MUNICIPALITYINTERNAL AUDIT
FUNCTION COMMENT AUDIT FINDING
1 Dikgatlong Municipality YES FB shared services YES
2 Frances Baard DM YES FB shared services NO
3 Magareng Municipality YES FB shared services YES
4 Phokwane Municipality YES Internal YES
5 Sol Plaatje Municipality YES Internal NO
6 Gamagara Municipality YES JTG shared services YES
7 Ga-Segonyana Municipality YES JTG shared services YES
8 Joe Morolong Municipality YES JTG shared services YES
9 John Toalo Gaetsewe DM YES JTG shared services YES
10 Hantam Municipality YES
Shared Services at Distict level was to commence on 01/07/2011 but the process has not been finalized
NO
11 Kamiesberg Municipality NO YES
12Karoo Hoogland Municipality YES NO
13 Khai-Ma Municipality YES YES
14 Nama Khoi Municipality YES NO
15 Namakwa DM NO YES
16 Richtersveld Municipality NO YES 26
FUNCTIONALITY OF INTERNAL AUDIT
NO MUNICIPALITY INTERNAL AUDIT FUNCTION COMMENT AUDIT FINDING17 Emthanjeni Municipality YES Pixley shared services NO18 Kareeberg Municipality YES Pixley shared services NO19 Pixley Ka Seme DM YES Pixley shared services NO
20 Renosterberg Municipality YES Pixley shared services Audit report outstanding
21 Siyancuma Municipality YES Pixley shared services Audit report not verified
22 Siyathemba Municipality YES Pixley shared services Audit report not verified
23 Thembelihle Municipality YES Pixley shared services YES24 Ubuntu Municipality YES Pixley shared services NO25 Umsobomvu Municipality YES Pixley shared services NO
26 Kai! Garib Municipality YES InternalAudit report outstanding
27 Kgatelopele Municipality YES InternalAudit report not verified
28 //Khara Hais Municipality YES Internal NO29 !Kheis Municipality NO YES
30 Mier Municipality NO Audit report not verified
31 Siyanda DM YES Internal YES32 Tsantsabane Municipality YES Internal Audit rep not verified
27
AUDIT COMMITTEES-27 of the 32 municipalities have audit committees in place
-25 audit reports were verified to assess the effectiveness of audit committees and it was noted that 22 audit committees were not effective during 2010/11 financial year while only 3 were evaluated to be effective by Auditor General.
-7 audit reports were not verified as they were not available at the time of completion of this report.
28
AUDIT COMMITTEES
No Municipality
Functionality of Audit Committees Comment Audit Finding
1 Frances Baard DM YES FB shared services NO2 Dikgatlong Municipality YES FB shared services YES3 Magareng Municipality YES FB shared services YES4 Phokwane Municipality YES Internal YES5 Sol Plaatje Municipality YES Internal NO
6John Toalo Gaetsewe DM YES JTG shared services YES
7Ga-Segonyana Municipality YES JTG shared services YES
8 Gamagara Municipality YES JTG shared services YES
9Joe Morolong Municipality YES JTG shared services YES
10 Namakwa DM YESShared Services at Distict level was to commence on 01/07/2011 but the process has not been finalized
YES
11Richtersveld Municipality NO
YES
12 Nama Khoi Municipality YES YES
13Kamiesberg Municipality NO
YES
14 Hantam Municipality YES YES
15Karoo Hoogland Municipality YES
YES
16 Khai-Ma Municipality YES YES
29
AUDIT COMMITTEES
NO MUNICIPALITYAUDIT COMMITTEE COMMENT AUDIT FINDING
17 Pixley Ka Seme DM YESPixley shared services YES
18 Ubuntu Municipality YESPixley shared services YES
19Umsobomvu Municipality YES Internal YES
20 Emthanjeni Municipality YESPixley shared services YES
21 Kareeberg Municipality YES Internal NO
22Renosterberg Municipality YES Internal
Audit report outstanding
23 Siyathemba Municipality YES InternalAudit report not verified
24 Thembelihle Municipality YESPixley shared services YES
25 Siyancuma Municipality YESPixley shared services
Audit report not verified
26 Siyanda DM YES Internal YES
27 Mier Municipality NO Audit report not verified
28 //Khara Hais Municipality YES Internal YES29 !Kheis Municipality NO YES
30Tsantsabane Municipality YES Internal
Audit report not verified
31 Kgatelopele Municipality YES InternalAudit report not verified
32 Kai! Garib Municipality NO Audit report outstanding
30
AMOUNT OF DEBT OWED TO MUNICIPALITIES BY GOVERNMENT DEPARTMENTS
• The information as at end of June 2012 as published on National Treasury website;
• Government departments owed municipalities in the Northern Cape R151 767 911
31
DEBT OWED TO MUNICIPALITIES Municipality
Debtors
Dikgatlong - Frances Baard District 962,204 Magareng 1,115,522 Phokwane 1,535,754 Sol Plaatjie 121,313,690 Gamagara - Ga - Segonyana 3,172,461 Joe Morolong - John Taolo Gaetsewe 250,372 Hantam 1,107,039 Kamiesberg - Karoo Hoogland 208,081 Khai – Ma 65,273 Nama Khoi 1,730,174 Namakwa District 2,352,770 Richtersveld 36,331 32
DEBT OWED TO MUNICIPALITIES Municipality
Debtors
Emthanjeni 1,518,373 Kareeberg 73,366 Pixley Ka Seme District - Renosterberg - Siyancuma 127,934 Siyathemba 638,453 Thembelihle 1,192,403 Ubuntu 705,656 Umsobomvu 532,118 Kai! Garib 675,844 Kgatelopele - Khara Hais 10,811,685 Kheis - Mier 1,642,408 Siyanda District - Tsantsabane - TOTAL 151,767,911
33
Interventions: Steps Taken to collect Monies:
• The Executive Council has instructed all Provincial Departments to pay municipalities outstanding monies owed to Municipalities. Municipal Managers and Provincial Heads of Departments are busy verifying amounts;
• Debt Collection Committee comprising of CoGHSTA and Provincial Treasury established to deal closely with municipalities to assist and support them to collect money which is due to them;
• Some municipalities are failing to implement their Credit Control and Debt Collection Policies despite being encouraged by the Department to do that;
• Credit control and debt collection Policies of municipalities are being monitored by the Department to ensure adequate implementation;
34
Compliance with Supply Chain Management Processes •Most municipalities were qualified on non-compliance with Supply Chain Management processes;
•During the monitoring of Audit Action Plans, municipalities were advised on how to deal with SCM transactions to avoid irregular and unauthorised expenditures.
•Furthermore, Provincial Treasury: Supply Chain Management is providing hands on support to municipalities
35
5.3 ACCELERATING SERVICE DELIVERY
Status and Pace of Service Delivery in the Northern Cape
•93,6% , which is 177,482 households have access basic level of water i.e. potable water. Access to Free Basic Water is 51 551 Households. All schools and clinics have access to water.;
•79.9% which is 160 000 households have access to basic level of sanitation. Access to Free Basic Sanitation is 51,551 Households. All sanitation backlogs at schools and clinics have been eradicated.
•77.6% , which is 91 232 households have access to basic level of refuse removal.
•82,1%, which is 141 488 Households have access to electricity - of which 48 408 households receive Free Basic Electricity.
36
IDP Analysis Session• The Northern Cape IDP Analysis took place on the 28 - 30 May 2012 and
was meant to arrive at decisions on issues such as municipal budgets and institutional transformation in a consultative, systematic and strategic manner;
• 31 Municipalities submitted their draft IDPs, with the exception of Kamiesberg which did not submit as their draft IDP was not yet approved by council but attended and presented at the engagement/analysis session;
• A pre-analysis was conducted by the Provincial IDP Task Team members to give feedback to the municipalities on their draft IDPs. Municipalities were requested to complete the IDP template and prepare presentations on the 6 KPA’s highlighting their achievements, challenges, interventions and AG’s audit outcomes.
• Municipalities submitted their final adopted IDPs to the MEC on 30 June 2012 37
Some of the more common issues identified by local municipalities were:•Support/attendance by provincial and national sector departments to the IDP Representative Forums and District IGR still a challenge;• Most municipalities do not have the capacity – human and/or capital – to implement their IDPs;•District municipalities (shared services) support to local municipalities is not effective;•Districts and local Municipalities that will ensure that districts plans are aligned with local Municipal IDP’s to address services delivery challenges. Local municipalities will require more funding as most of the DMA areas fall under their jurisdiction.
38
IDPs
• 23 out of the 32 municipalities adopted their final IDPs by the end of May 2012
• Of the 9 that did not approve before end of May 2012, 5 adopted theirs before end of June 2012 (end of the financial year), whilst 3 adopted theirs in the first month (July) of the new financial year and it is only Karoo Hoogland that did not adopt their IDP
39
MONITORING OF IDPS
• The Department coordinates the Provincial IDP Task Team which comprises of all Provincial and National Sector Departments and all important role-players
• Within the Departments itself, the Directorate of Planning and Development monitors implementation of IDPs: 5 Assistant Directors each allocated a District to monitor and report on monthly basis
40
5.4 FACILITATING SUSTAINABLE INFRASTRUCTURE
Availability and Functionality:
•Availability of funding for bulk services still remains a major challenge for the Municipalities in the Northern Cape due to them not generating enough funds to rehabilitate, upgrade renew or extend their existing water and waste water treatment plants and bulk water pipelines which at present are operating beyond their maximum capacity due to expansion of the towns
•Municipalities only apply for funding at National CoGTA through Municipal Infrastructure Grant programme (MIG) and Department of Water Affairs with the Regional Bulk Infrastructure Grant (RBIG) and the Accelerated Community Infrastructure Program (ACIP)
41
FACILITATING SUSTAINABLE INFRASTRUCTURE
• With regard to MIG, the annual allocations that they receive prove to insufficient as they are too small to fund the bulk services that are very expensive and in cases the Municipalities would have to commit their entire MTEF allocations over a number of years to be able to fund those projects 100%. The only other alternative is to apply to DWA for assistance through the RBIG and ACIP
• DWA has budgeted R30,5 million for ACIP projects in the 2011/2012 financial year and projects include 2 water and 3 waste water projects
• 33 projects have been prioritised for the RBIG programme with 11 capital and 10 planning projects being budgeted for the 2012/2013 financial year to the amount of R218,7 m.
42
FACILITATING SUSTAINABLE INFRASTRUCTURE
MIG Funding
• Amount allocated to Northern Cape municipalities during 2009/10 = R335m
• Amount allocated to Northern Cape Municipalities during 2010/11 = R425m
43
WATER BACKLOGS PER DISTRICT:
44
SANITATION BACKLOGS PER DISTRICT:
45
5.5 FIGHTING CORRUPTION
• There has been no proclamations instituted by the Provincial Government;
• Department has assisted all Municipalities in developing Fraud Prevention Policies and is also monitoring implementation thereof;
• The following slides give details of cases of corruption and fraud which were reported to the Department
46
CORRUPTION CASES INVESTIGATED ….
MUNICIPALITY CORRUPTION
TYPE
PREPETRATOR’S
POSITION
MONETARY
VALUE
STATUS OF
INVESTIGATION
OUTCOME FRAUD
PREVENTION
POLICY
FRANCES
BAARD DISTRICT
Theft of petrol Messenger/ Driver +_ R4 000 Finalized Dismissed
Yes
SOL PLAATJE 1. Invoice
Corruption
1. Secretary +_ R 60 000 Commercial
Branch of SAPS
Investigate matter
Pending Yes
1. Issue false
Learners
Licences
1. Traffic Officer +_ R30 000 Commercial
Branch of SAPS
Investigate matter
Case is
currently
proceeding
in criminal
Court
1. Invoice
corruption
General Worker +_ R 30 000 Departmental
Investigated
Outcome of
disciplinary
hearing
awaited
( Pending)
1. Embezzlement Services Station
supervisor
R 25 000 Case was
investigated by
employer
Disciplinary
hearing not
finalized 47
JOHN TAOLO GAETSEWE DISTRICT
Fraud District Management Area- Administrative Officer
Not known Criminal case with SAPS
Employment contract of not renewed
Yes
GA-SE GONYANA LOCAL
Fraud& Theft 5 Chief Traffic
Officers – Traffic
Control
It cannot be
quantified as it
continued over
a period of time
where bribes
were obtained
in favour of
learners and
drivers licenses’
Criminal
case still on,
at Magistrate
Court.
Internal
disciplinary
process over
these traffic
officers
Dismissed but
appealed
case is at
Bargaining
Council
(CCMA)
Yes
48
CORRUPTION CASES ….
SIYATHEMBA Theft Traffic
Department
Clerk Not Known SIU Not
available Yes
EMTHANJENI Theft Creditor
Control/ Clerk
R427579.6
8
Regional
Court
Resigned
&
Sentence
d
Yes
Theft Clerk R1275-00 Disciplinar
y &
Dismisse
d and
resigned
Corruption &
Fraud
Motor
registration
Clerk
- Court Transfer
Theft Cleaner R4129.00 Finalized Sentence
d
NAMAKWA DISTRICT
1. Sub Judicated
CFO Unspecified Sub Judicated
Suspended and resignedCriminal case still pending
Yes
1. Sub-Judicated
Head: Roads Unspecified Sub-Judicated
Resigned,Criminal case still pending
1. Supply Chain
Municipal Manager
Un specified
Completed Resigned, Criminal case still pending
1. Theft Labourer - Completed Dismissed
1. Theft Labourer - Pending Pending
RICHESTVELD Theft &Fraud
Casher R22000.00 Finalized Settlement to resign and payback the stolen money
Not signed
Fraud/Theft Driver R355.20 Finalized Final warning- Lack of evidence
50
NAMA KHOI Theft of cash Perpetrator
unknown.
Incident
occurred in
March 2009
R60.000 Investigatio
n by the
financial
department
Case still open Yes
Allegation
fraud. Individual
pricing and
selling
municipality
movable
assests to
member of
public without
Council
Resolution as
required by
section 14 of
the MFMA
Written
complaint by
two employees
of the
municipality
HOD of
finance &
Acting
Municipality
Manager
R8,400 Outcome of
investigation with
supporting evidence
were submitted by
the Internal audi unit
to the Municipaln
Manager. Audit
Committee and
Council. The Audit
committee
recommeded that
disciplinary action
be taken against the
senior managers in
terms of the SCM
Policy and section
171 & 173 of the
MFMA 51
NAMA KHOI Theft of cash Perpetrator unknown. Incident
occurred in March 2009
R60.000 Investigation by the financial
department
Case still open
Allegation fraud. Individual pricing and selling
municipality movable assests to member of
public without Council Resolution as required by
section 14 of the MFMA
Written complaint by two employees of the
municipality
HOD of finance & Acting
Municipality Manager
R8,400 Outcome of investigation with
supporting evidence were
submitted by the Internal audi
unit to the Municipaln
Manager. Audit Committee
and Council. The Audit
committee recommeded that
disciplinary action be taken
against the senior managers in
terms of the SCM Policy and
section 171 & 173 of the
MFMA
Theft of fuel General worker in the
Technical Department
R60. 000 Disciplinary hearing Employee not
found guilty
Fraud, Pricing and selling of
municipal land to a member
of the public without a council
resolution and far below fair
value as required by section
114(2)(a)&(b) of the MFMA
HOD of Corporate Services
& Acting Municipal
Manager
Estimated
R1,200,000
Disciplinary hearing
and subsequent
dismissal by Council
Arbitration cases
still open
2010/2011 Theft of electrical cable and
switch gear of substations
Member of the public Estimated
R4,000.000
Arrest was made.
Criminal charges
were laid. Case
twice postponed in
magistrate court
Case still open
52
6. CHALLENGES
• The issue of the vast topography occupied by the Province with highly scattered population brought about major challenges in dealing with local government matters;
• Northern Cape municipalities are struggling to recruit suitable senior management personnel to work in municipal spaces;
• Municipalities consistently experience brain drain because they are not attractive as areas to stay and work, they are not able to offer competitive remuneration to skilled personnel;
53
CHALLENGES:
• The equitable share given to municipalities is inadequate to deal with the challenges faced by municipalities;
• The Department is constantly deploying its own personnel to fill in vacancies as those of Municipal Managers in several municipalities;
• The department has limited capacity and budget to sustain interventions implemented in municipalities
• There are municipalities in the Province that are not viable and these require special attention
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7. CONCLUSION
• Spatial realities of the Province are constraining service delivery, human resource capacity, shared services and other matters
• Despite all the challenges, Department and Provincial Government will ensure that municipalities are given the necessary support to ensure good governance and financial viability and sustainability
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Recommended