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2012/13
2012/13
ANNUAL REPORT
1 2012/13 Annual report
CORPORATE PROFILE
The West Rand Development Agency (WRDA) was established through Council Resolution and
in terms of the new Companies Act of 2008; the organisation is a State Owned Company (SOC
Ltd) with effect from 1 May 2011. The WRDA is a Municipal Owned Entity (MOE), and in terms
of its most current Service Delivery Agreement (2008) it is established and controlled by the
West Rand District Municipality (WRDM), although the four local municipalities within the district
have committed themselves to full support of the WRDA. The WRDA is regulated by the
Municipal Systems Act (Act 32 of 2000) and the Municipal Finance Management Act (Act 56 of
2003).
The WRDA was created as a focused response to the challenges faced by West Rand region
municipalities in fulfilling their developmental local government role; and to be the economic
development agency for the West Rand region. It was established for „the express and sole
purpose of assisting the Municipality to achieve global standards of economic growth and
development for all within the area of jurisdiction of the WRDM‟. To this end, the WRDA
undertakes to act at all times in accordance with the Integrated Development Plans (IDP)
adopted by the West Rand Municipalities.
Board of Directors
Simon Mohapi Chairperson
Christa Venter Deputy Chairperson
Maxwell Ramagaga
Zanele Mazibuko
Dumisani Ndlovu
Queeneth Nkosi
Modibe Ramodibe
Deborah Don-Pierrot
Teboho Sejake
2 2012/13 Annual report
Ex-Officio Board Members (Shareholder Representatives)
Executive Management
Company Secretary
The company does not have a company secretary
Auditors
Auditor General of South Africa
Bankers
Standard Bank of South Africa (Pty) Ltd
Business Address Postal Address
22 Stubbs Street PO Box 109
Randfontein Randfontein
1760 1760
Cllr Elvis Mpithikezi MMC LED
Zeblon Mphaphuli WRDM LED Manager
Sipho Mhlongo Chief Executive Officer
3 2012/13 Annual report
Table of Contents EXECUTIVE SUMMARY .................................................................................................................................. 5
CHAIRPERSON’S STATEMENT ........................................................................................................................ 6
CHIEF EXECUTIVE OFFICER’S REPORT ........................................................................................................... 8
1 STRATEGIC OVERVIEW ............................................................................................................................. 10
Mandate of the West Rand Development Agency ................................................................................. 10
Vision Statement ..................................................................................................................................... 10
Mission Statement .................................................................................................................................. 10
2012/13 Strategic Goals and Objectives ................................................................................................. 11
Corporate Values .................................................................................................................................... 11
Revisions to Strategic Goals and Objectives ........................................................................................... 12
Legislative and Policy context ................................................................................................................. 13
West Rand District Profile ...................................................................................................................... 15
2 CORPORATE GOVERNANCE ...................................................................................................................... 18
Shareholder Governance Relationship ................................................................................................... 18
Board establishment and composition ................................................................................................... 18
Board Committees .................................................................................................................................. 19
Board Responsibilities and Duties ........................................................................................................... 20
Board Meetings ....................................................................................................................................... 21
Board Committee Meetings .................................................................................................................... 22
Corporate Code of Conduct .................................................................................................................... 22
Interest in contracts and related party transactions .............................................................................. 22
Internal Control ....................................................................................................................................... 23
Risk Management ................................................................................................................................... 23
Sustainability ........................................................................................................................................... 24
Approved policies and Guidelines ........................................................................................................... 25
Board Committee Reports ...................................................................................................................... 25
Audit, Finance and Risk Committee Report ........................................................................................ 26
Human Resources and Remuneration Committee Report ................................................................. 28
Projects and Tender Committee Report ............................................................................................. 29
4 2012/13 Annual report
3 PERFORMANCE ........................................................................................................................................ 30
Key highlights .......................................................................................................................................... 30
Operational highlights ............................................................................................................................. 32
Project highlights .................................................................................................................................... 33
Donaldson Dam ................................................................................................................................... 33
Katlego Cultural Facility ...................................................................................................................... 35
Plastics Recycling ................................................................................................................................ 36
Investment Facilitation ........................................................................................................................... 38
Partnerships ............................................................................................................................................ 39
Reporting ................................................................................................................................................. 40
4 ORGANIZATIONAL DEVELOPMENT .......................................................................................................... 41
Staff establishment ................................................................................................................................. 41
Current Organizational Structure ............................................................................................................ 41
Recommended Organizational Structure ............................................................................................... 42
Sick Leave taken ...................................................................................................................................... 42
5 PERFORMANCE SCHEDULE (SDBIP) .......................................................................................................... 43
Strategic Goal 1 ....................................................................................................................................... 43
Strategic Goal 2 ....................................................................................................................................... 44
Strategic Goal 3 ....................................................................................................................................... 45
Strategic Goal 4 ....................................................................................................................................... 48
Strategic Goal 5 ....................................................................................................................................... 52
ANNUAL FINANCIAL STATEMENTS ......................................................................................................... Part 2
AUDITOR-GENERALS REPORT ................................................................................................................ Part 3
GENERAL INFORMATION ............................................................................................................................ XX
5 2012/13 Annual report
EXECUTIVE SUMMARY
The 2012/2013 Annual Report was compiled in accordance with the requirement of the
Municipal Finance Management Act 56 of 2003 (MFMA) and Company‟s Act.1973.The purpose
of this report is to provide feedback:
• On activities of the municipal entity
• To provide a report on performance, and
• To promote accountability to the community for the decisions made from July 2012 – June
2013
This Annual Report includes:
• • Municipal Entity‟s annual performance report
• • Annual Financial Statements of the municipal entity;
• • The Auditor General‟s report on municipal entity performance
The report has been compiled to adhere to the main reporting areas as set out by the guiding
regulations indicated above. It conforms to standard practice for companies and also follows the
sequencing as prescribed by treasury guidelines for annual reports.
It must be noted that the treasury template provided to municipalities for annual reports for
2012/13 financial year has not been utilized in the format provided owing to the nature and
format of information at the Agency‟s disposal. Due care has been taken to ensure that the
report reflects as much as possible the information required as in the treasury template.
In terms of the processes prescribed by the MFMA Section 127(1), the Accounting Officer of a
municipal entity must, within six (6) months after the end of a financial year, or on such earlier
date as may be agreed between the entity and its parent municipality submit the entity‟s annual
report for that financial year to the municipal manager of the entity‟s parent municipality
6 2012/13 Annual report
CHAIRPERSONS’ STATEMENT
In its first year, this board has demonstrated an incredible amount of knowledge and expertise in
responding to the challenges of the organization and benefitted the organization greatly through
their collective experience in providing strategic direction and oversight to the management of
the Agency. The challenge of operating in a highly regulated and complex environment has not
deterred nor discouraged the required contribution of the board to advance the organization.
Let me highlight just two of the challenges that impact on delivery capability and organizational
effectiveness. Human and financial resources and certainly these need attention. The limited
human resource capacity continues to impede the provision of the full range of services that
must be rendered by the Agency whose functions require professionals to perform them. The
Agency‟s management is under enormous pressure to make things happen and still comply with
proper businesses practices to keep the organization going. Undoubtedly, it must be said that it
is through the support of the shareholders that key functions are taking place on an outsourced
basis to the district municipality.
The 2012/13 year saw the exit of both the Interim Board and the Acting CEO as they were
replaced by this board as well as our appointment of the CEO. This follows the principle
decision that was taken by the shareholders for the WRDA to continue operating as the
developmental arm of the West Rand District. The able leadership they gave to the WRDA
during the period of uncertainty deserves a special mention in this report
During this financial year, best practice in corporate governance was demonstrated. The Board
met as scheduled and as required but importantly, demonstrated commitment and the will to
achieve by going an extra mile with meetings exceeding the prescribed requirements. All the
Committees including HR & Remunerations and the Tender & Projects worked tirelessly in
giving shape to the Agency and the Audit, Finance and Risk Committee performed their duties
diligently both in terms of adhering to financial reporting and risk management processes.
Furthermore, during April and May 2013, the Board and Management Team of the WRDA
convened to conduct a thorough strategic review, looking at progress and performance to date.
During this period, a sincere conversation took place with the shareholders in which
expectations and reprioritisation of the Agency‟s mandate was set out. This culminated in the
development of a redefined Strategic Plan as well as a 3 year Business plan. In so doing, the
WRDA considered both successes and challenges experienced in delivery against its strategic
intent and reflected extensively on its alignment to the national, provincial and local priorities
7 2012/13 Annual report
reflected in the Growth and Development Strategy (GDS), the Medium Term Strategic
Framework (MTSF) and the National Development Plan (NDP) with particular focus on the
Outcome of “Decent employment through inclusive economic growth.”
In this regard, the Strategic Plan and aligned Business Plan of the WRDA reflects an intent to
contribute substantively as the economic development agent for the West Rand area by
stimulating, facilitating, implementing and supporting economic development and job creation
projects and initiatives. This intent will be supported through the leveraging and mobilisation of
partnerships with both the public and private sectors for the roll-out of sustainable and
integrated economic infrastructure and development interventions. Strategic relationships will
form a critical component of the degree to which the WRDA will fulfill its mandate. In light of our
new business model, it is imperative that we work actively with all spheres of government, as
well as with many partners from the private sector and developmental funding community.
The re-emergence of the WRDA is significant for the future of the West Rand, particularly
because the Agency has the ability to change the face of the region. We are cognisant of the
role that we need to play in enabling a multiplier effect in the region‟s growth and development.
We are also confident in our ability to achieve this due to the unwavering support expressed by
our shareholders.
As indicated earlier, this has been a year of critical review and moving forward, we are willing to
work hard and smart. The WRDA looks forward to becoming an integral part of delivery in the
West Rand District through piloting ground breaking concepts that define the region‟s rightful
place as the origins of all things evolutionary and catalytic for human nature.
I would like to take this opportunity to express the WRDA Board‟s commitment to support the
organisation as it continues to concentrate on excellent service delivery to our region and its
people through the performance focus and intent outlined in the redefined Strategic Plan for the
period 2013/14 – 2017/18. In this regard, the WRDA is confident that it will enhance its
capability and capacity and will continue with its ongoing efforts to improve its governance
systems and service delivery outcomes in the FY2013/14 period.
Also, I would like to thank the Executive Mayors of the West Rand for their support both through
consistent encouragement and exceptional strategic guidance. We look forward to a close
working relationship with the Executive Mayors and West Rand Municipalities as we strive to
better the lives of our people. In addition, the commitment and support from the MMC Local
8 2012/13 Annual report
Economic Development has enabled the board to gear up to the work on hand that must be
undertaken.
I am grateful to each non-executive director that serves on the Board for their time and valuable
input. We thank the selfless effort of the WRDA management and staff under the able
stewardship of the CEO towards making this report possible
Lastly, I can report the following in terms of my responsibilities as Chairperson, that I have:
Provided overall leadership to the board without limiting the principle of collective
responsibility for the board
Strived to ensure an efficient organization and good conduct of the board
Engaged in processes to monitor the board through an agreed framework
Facilitated board discussions to ensure that the core issues facing the Agency are
addressed, however it has been a struggle to convene all shareholders to discuss possible
sollutions
Always ensured that all the boards directors are briefed on issues arising due to the intimate
detail management shares with me on challenges and matters arising from strategic
engagements
Made sure that I facilitate the effective contribution and on going development of directors,
with one of the exercises undertaken during the strategic planning session of the Agency, in
which directors were schooled on government frameworks and planning processes
Promoted consultative and respectful relations amongst board members and between the
board and management
Ensured that I chair all the Board meetings to lead by example and inspire the board.
Laslty let me indicate that this annual report is a true reflection of the WRDA for the financial
year ending 30 June 2013 given all that has transpired in the course of the 2012/13 financial
year..
CHAIRPERSON OF THE BOARD
9 2012/13 Annual report
CHIEF EXECUTIVE OFFICER’S REPORT
The year under review has provided the Agency with the opportunity to begin afresh, relooking
at the manner of doing business. A fresh approach to doing business is instigated in fulfillment
of the mandate conferred by the shareholders. There is an emphasis by shareholders on the
requirement to have a vehicle driving economic development in the West Rand, given that the
region is awash with developmental opportunities that are across municipal boundaries. That
being the case, the challenges are complex, whereby there is still a struggle to identify the
catalytic interventions that will make a meaningful difference in the economy of this region,
without sacrificing the character of the West Rand as the origins of humanity.
Having joined the Agency in the latter part of the financial year, it was through the assistance of
the outgoing Acting CEO, Mr Mphaphuli, that one acquired a good grasp of the challenges,
areas of need and low hanging fruit. Interestingly it has been a flurry of activity trying to respond
to compliance requirements and engaging with key stakeholders to get things going.
The dire shortage of professional staff has created an adverse effect on the overall performance
of the entity although one must appreciate the support that the agency is receiving from the
parent municipality in performing some of its functions. This includes technical financial
management support and operational support on some of the projects. The resourcing
challenge has been caused largely by the attrition of financial support from the shareholder
owing to fiscus constraints. In order to remedy this a process has been agreed to reverse back
into the WRDA budget the allocations for approved posts. Furthermore an opportunity has been
provided by the IDC to provide resources to recruit project related personnel on the funds from
the commitment provided.
In terms of current operational areas, there have been gains and not so gains with regards to
planned targets. The search for a developmental partner for Donaldson Dam had to be called
off as there were no serious contenders based on the poor quality of responses received.
However this has created an opportunity to view a broader developmental objective on the
required tourism infrastructure to support enterprise development in this sector. Also this broad
view approach spread on to the Plastics project, in which the WRDA needs to focus on
incubating entrants to the plastic manufacturing industry. This particular project has also
amplified the need to adopt a private sector style approach to conducting business so that the
procurement challenges which have been experienced in the project do not repeat themselves.
To put in context, production at the factory stopped due to a critical infrastructure not being
replaced in time. On the other hand delays can help, as in the Katlego Cultural Facility project
by making it possible to review the institutional model that had created a stalemate for years.
Today a solution is in hand to take the project forward that is supported in principle by all the
project partners.
From April to May 2013, the Agency through the board deliberated on strategic issues and the
focus has been on what actions are required to accelerate economic growth and development in
the West Rand. Based on interactions with the District and Local Municipal leadership, the
Agency has revisited its value proposition and furthermore a revised 5 year strategy, 3 year
business plan have been developed.
10 2012/13 Annual report
In terms of service delivery outcomes for the 2013/14 Financial Year the agency will focus on
cover 3 areas, namely:
Focused support to targeted sectors resulting in equitable economic development and
inclusive growth such as the agri-sector/green sectors and possibly transport sector
Strategic economic development interventions supporting employment-led growth and
development looking into economic infrastructure to support industrial development such
as incubator facilities for the plastic sector
An enabling environment for trade and investment into the region by ensuring that there
is efficiency of service to investors and businesses alike and setting up access portals
and networks.
For each area outlined the Agency will be delivering on programmes to realize the objectives
listed therein. Of emphasis will be the mobilization of key economic stakeholders in the region to
involve them in implementation programmes and importantly to build on synergies.
Although the Agency has had its fair share of challenges in the past which are well document in
various reports including the Auditor Generals findings as well as in the detail on performance of
this report. I implore all past and present stakeholders to take another look at the new
developments that are being driven by the Agency. The turnaround strategies described in the
performance section of this report reflect the remedies that have been approved by the board
for implementation by management. In a nutshell the challenges will be addressed by ensuring
that the WRDA focuses on rollout of projects rather than to try and manage redundant projects
for revenue generation. Other avenues for revenue will be looked on the basis of mobilizing
resources and funding to execute projects. The WRDA will not try and compete with the private
sector and beneficiaries it is mandated to develop.
The signs are clear that the will be an enhanced presence of the agency in the region and
deeper involvement in project conceptualization and rollout. Economic stakeholders should
begin to view the WRDA as their developmental partner for activities they conduct in the West
Rand and participate in the engagement platforms that the agency will create.
I would like to thank the WRDA Chairman whose wise counsel in tandem with the valued
counsel of the WRDA Board has enabled me to adjust to this complex and demanding
environment given the limited resources and challenges facing the WRDA. I would also like to
reiterate the gratitude of the Chairman expressed to the Political Executive of the West Rand for
the support provided. Last but not least, I thank the staff at the agency for keeping up with the
demands I have placed on them and the effort they have put in getting the job done.
CHIEF EXECUTIVE OFFICER
11 2012/13 Annual report
1 STRATEGIC OVERVIEW
The Mandate of the West Rand Development Agency.
The West Rand Development Agency (WRDA) was established through Council Resolution and
registered as a private company with limited liability (Pty Ltd) in February 2005. It is a Municipal
Owned Entity (MOE), and in terms of its 2008 Service Delivery Agreement it is established and
controlled by the West Rand District Municipality (WRDM), although the four local municipalities
within the district have committed themselves to full support of the WRDA. The WRDA is
regulated by the Municipal Systems Act (Act 32 of 2000) and the Municipal Finance
Management Act (Act 56 of 2003). In terms of the new Companies Act of 2008, the organisation
is now deemed to be a State Owned Company (SOC Ltd) as of 1 May 2011.
The primary role of the WRDA is to act as the economic development agent for the West Rand
in so far as to stimulate, facilitate, implement and support economic development and job
creation projects and initiatives that will contribute to regional economic development. In its
functioning, it will therefore serve as an extension of the LED responsibilities of the WRDM and
the local municipalities in the West Rand District.
In line with national and international trends, the WRDA will have the explicit task of developing
the unique opportunities in the West Rand (the so-called “pockets of excellence”) that will
ensure economic sustainability and competitiveness. In so doing, the WRDA will focus on the
visible implementation of economic projects that will have a significant level of impact on the
economy and socio-economic and spatial environment of the West Rand.
The WRDA adopted a vision and mission that reflects the commitment of a wide variety of
stakeholders in the region to the support of a network aimed at fostering economic development
and employment creation, hence the vision and mission states:
VISION STATEMENT
“Enabling competitive regional economic development”.
MISSION STATEMENT
To provide economic development facilitation services towards sustainable economic growth for
the benefit of communities within the West Rand
Acknowledged as an important agency by the Executive Mayor of the WRDM, the WRDA
Service Delivery Agreement further outlines the primary mandate of the WRDA as follows:
12 2012/13 Annual report
To monitor and implement key strategic economic development projects in WRDM's area of
jurisdiction;
To act as the economic development agent for the West Rand area and to stimulate,
facilitate, implement and support economic development and job creation projects and
initiatives that will contribute to regional socio-economic development;
To develop the unique opportunities in the West Rand that will ensure economic
sustainability and competitiveness; and
To focus on the visible implementation of economic projects that will significantly impact the
regional economy and foster socio-economic and spatial development in the region.
2012/13 Strategic Goals and Objectives
STRATEGIC GOALS OBJECTIVES
To mobilise resources for economic development projects / programmes through partnerships
Leveraging funds Attracting expertise / skills (egg. programme / project
management) Assets mobilisation (land, infrastructure availability)
To provide trade and investment promotion support in the region
Investment promotion (marketing, facilitation, after care)
Trade promotion (access to markets, domestic, international)
To provide programme / project management support services
Project planning management (project identification, project scoping, project feasibility)
Project implementation management (tendering, contractor management, project marketing, project handover)
To ensure internal business excellence
Business management / leadership
◦ Strategic positioning
◦ Business performance management
◦ Stakeholder relations management / communication Resource management
◦ Human resource management
◦ Financial management
◦ ICT management
◦ Infrastructure / facilities management
◦ Information / knowledge management
Values
Collaboration (partnering / consultative / participative)
Integrity (accountable / transparency / honesty / ethical / trustworthy / reliable)
Proactive (flexible / innovative / creative / adaptable / visionary)
Client focused (delivery orientated / accessible / results oriented / make things happen /
solution oriented)
Passionate (dedicated / motivated / committed / enthusiastic)
Decisive (assertive / confident / self-assured)
13 2012/13 Annual report
Revisions to Strategic Goals and Objectives
During the course of the financial year, a strategic review was undertaken by the Board of
Directors in conjunction with shareholder municipalities of the West Rand. The strategic goals of
the West Rand Development Agency have now been derived from an analysis of the
environment, key risks and challenges and strategic issues that the organisation should
address; and are aligned to national, provincial and regional / district strategic priorities and
outcomes, and the policy environment outlined below.
In supporting the focus of the Gauteng Department of Economic Development, the WRDA
supports National Outcome and Provincial Outcome 4 - as a proactive contributor to the
development of “decent employment through inclusive economic growth” in Gauteng.
In this context, the West Rand Development Agency‟s overarching strategic intent is to “act as
the economic development agency for the West Rand region, with a proactive focus to
stimulate, facilitate, implement and support economic development and job creation
projects and initiatives that will contribute to visible regional socio-economic and spatial
development”.
Towards the attainment of its aim, five strategic goals have been developed in order to enable
the WRDA to effectively focus and prioritise its options in delivering on its mandate and
responding to the above strategic priorities. The approach sought to ensure that the strategic
goals are both reactive to the environment and development priorities and also proactive in
setting the desired future state.
The strategic goals are framed as statements that describe the outcome expected as a result of
WRDA intervention to 2017/18, and are now as follows:
BALANCED STRATEGY
PERSPECTIVE WRDA STRATEGIC GOAL STRATEGIC OBJECTIVES
SHAREHOLDER VALUE 1. Focused support to targeted sectors
resulting in equitable economic
development and inclusive growth
Market and business intelligence to support
decision making
Support the inclusiveness of stakeholders in
planning and beneficiation.
Programmes and interventions towards
knowledge and labour intensive sectors
conceptualised.
2. Strategic economic development
interventions supporting
employment-led growth and
development
A set of prioritised projects based on impact
criteria is translated into bankable business
plans.
Targeted strategic economic infrastructure
projects implemented.
External funding and partnership
opportunities secured.
14 2012/13 Annual report
BALANCED STRATEGY
PERSPECTIVE WRDA STRATEGIC GOAL STRATEGIC OBJECTIVES
CUSTOMER
DEVELOPMENT
3. An enabling environment for trade
and investment into the region.
Enterprise development and initiatives to
address barriers to entry.
Packaged services to support business
functioning.
Targeted export promotion and export
readiness in targeted sectors.
Viable foreign and local investment directly
facilitated.
Positioning the West Rand as a preferred
trade and investment destination
INTERNAL PROCESSES
& ORGANISATION
EFFECTIVENESS
4. Public accountability, high
standards of corporate governance
and efficient resource utilisation.
Financial accountability and compliance to all
prescribed regulations and guidelines.
Enhanced business and operational
processes.
Enhanced information and knowledge
management systems - integrated with those
of shareholder.
Compliance reflected through Internal and
External Audits.
LEARNING AND
GROWTH
5. High performance in an enabling
business environment.
An optimal WRDA design which is
capacitated to support the strategy.
Effective Performance Management and
Development of staff.
Enhanced organisational performance
through the provision of effective support
services.
Legislative and Policy Context
The WRDA was established for „the express and sole purpose of assisting the Municipality to
achieve global standards of economic growth and development for all within the area of
jurisdiction of the WRDM‟. To this end, the WRDA acts at all times in accordance with the
legislative frameworks and policy guidelines developed by the 3 spheres of government.
Furthermore its activities are intended to support the Integrated Development Plans (IDP)
adopted by the West Rand Municipalities.
With this broad context in mind, it is then important to consider the characteristics and policy
environment of the West Rand as a District Municipality with its Local Municipalities. There are a
number of Acts, policies, strategies which provide a context to the work of the WRDA.
15 2012/13 Annual report
RELEVANT LEGISLATION AND POLICY FRAMEWORKS
NATIONAL LEVEL
Constitution of the Republic of South Africa, Act 108 of 1996
Companies Act, 71 of 2008, as amended
King Codes of Good Governance
Municipal Finance Management Act 56 of 2003, as amended
Municipal Systems Act 32 of 2000, as amended
The Millennium Development Goals (MDGs)
The National Development Plan (2012)
The National Industrial Policy Action Plan (IPAP2) (2010)
The Developmental New Growth Path (2008)
The Medium Term Strategic Framework (MTSF) for government, 2009-14
The Outcomes Based approach (2010)
PROVINCIAL LEVEL
The Gauteng City Region (GCR) perspective (2008)
Gauteng Vision 2055
The Gauteng Employment, Growth and Development Strategy (GEGDS) (2010)
Gauteng Spatial Development Framework
Gauteng Industrial Policy Framework (GIPF)
Gauteng Green Economy Strategy
The Gauteng Local Economic Development Framework (2009)
Gauteng Rural Development Strategy
Gauteng Cooperatives Development Strategy
LOCAL LEVEL
The West Rand Growth and Development Strategy
The West Rand District Municipality Integrated Development Plan (2012)
and
The aligned Integrated Development Plans of the four Local Municipalities
The West Rand Green Economy Strategy (Green IQ)
The West Rand Tourism Strategy for the MCLM and District Managed Area
The West Rand Marketing and Investment Strategy
West Rand District Spatial Development Framework
16 2012/13 Annual report
As stipulated in the SDA of 2008, the WRDA is compelled to work within the framework and
limitations of the GDS of the WRDM and the IDP of the WRDM. By association, the work of the
WRDA is also informed by the IDP‟s of the four Local Municipalities. The six strategic priorities
of the GDS of the WRDM are outlined in the figure below.
The Six Strategic Priorities of the GDS of the WRDM
West Rand District Profile The West Rand district Municipality (WRDM) is situated in the western part of the Gauteng Province (GP), bordering the North West Province. The WRDM covers approximately 2,442.4 km² in extent consists of four local municipalities as follows:
Merafong City Local Municipality, covering a total area of 1630.57 km², Mogale City Local Municipality, covering a total area of 1120 km², Randfontein Local Municipality, covering a total area of 442.4 km², Westonaria Local Municipality, covering a total area of 637.6 km², and The Cradle of Humankind World Heritage Site (under management of the Gauteng
Tourism Authority), covering a total area of 242.4 km².
17 2012/13 Annual report
The WRDM, with 7% of Gauteng‟s population, contributes a relatively small 5.2% to the
economy of the Gauteng province. It has, as its neighbouring municipalities the City of Joburg
Metropolitan Municipality; City of Tshwane Metropolitan Municipality; Bojanala Platinum District
Municipality; Sedibeng District Municipality and Dr. Kenneth Kaunda District Municipality. The
basic demographic information of the West Rand is summarised in the table below:
Characteristic Mogale City Merafong Randfontein Westonaria WRDM
Population 362 420 (44.1%)
197 521 (24.1%)
149 286 (18.2%)
111 768 (13.6%)
820 994 (100%)
Average household size (members)
3.7 3.4 3.3 4.0 3.8
Economically active population (EAP)
259 918 143 278 104 848 81 927 589 970
Employed as % of EAP 51.8% 46.5% 49.1% 49.5% 49.7%
*Unemployed as % of EAP
48.2% 53.5% 50.9% 50.5% 50.3%
Source: Statistics South Africa, 2011
The spatial structure of the district is predominantly rural. The main areas of economic activity in
the West Rand District are Krugersdorp, Randfontein and Westonaria. The dominant land uses
include residential, mining and agriculture. This being said, the West Rand District is the next
developmental area for the Gauteng region, with a natural progression towards the district and
the district being able to develop in any direction.
Historically, Gauteng (and the West Rand) has been built on the Gold industry. Mines, mining
houses and the related industries thrive in this province. There are approximately 159 mines –
of which 44 of them gold mines - in Gauteng that together produce a quarter of South Africa's
total mineral production. Most of the mining is for gold - 80% of Gauteng's output.
One of the most important aquifers in South Africa is the dolomitic aquifer of the West Rand and
Far West Rand area. Due to the anthropogenic influences from both mining and industrial
sources, this aquifer is increasingly under threat of becoming a vast unexploitable reserve of no
use as a groundwater resource. The gold-bearing reefs contain an array of minerals such as
native gold, uranium oxides, traces of platinum and an array of sulphide minerals with pyrite
being the most abundant. Most of the mines have produced uranium as well as gold.
Gold mining is the principle economic activity in the West Rand and Far West Rand regions.
This industry is the basis of the economy and socio-economic development of the region. Gold
mining on the West Wits Line contains of the biggest and richest mines in the entire
Witwatersrand basin. Unfortunately, associated with all the economic and social benefits arising
from gold mining there are several negative impacts on the environment.
18 2012/13 Annual report
The below figures provide a perspective on the size of the economy of the WRDM and the Local
Municipalities. As stated earlier the WRDM contributes 5.2% to the Gauteng economy and
Mogale City accounts for more than half of the economy of the WRDM. Westonaria is the
smallest of the local municipalities in economic terms.
*Source: Demacon
Concluding comment
Mining as stated earlier, is still- and will be for many years to come- an important economic
sector of the District in terms of both production and employment. Agriculture is an important but
under-developed sector. It is however a sector in which the GPG is investing as part of its rollout
of agricultural hubs. Its proximity to the largest consumer markets for perishable goods in South
Africa (City of Tshwane and City of Joburg), agriculture (and agro-processing) has the potential
of developing into a significant competitive advantage for the West Rand.
A further comparative advantage of the WRDM is tourism, with a number of well renowned sites
such as the Cradle of Humankind World Heritage site within its borders. These attractions can
contribute to the increase of the regions share of international and domestic tourism arrivals and
capitalise on the resultant opportunity for economic growth.
The West Rand is relatively well connected to other regions, municipalities and districts via road
and rail networks and corridors. The Lanseria airport also ensures excellent accessibility for
manufacturing, agro-processing and distribution. The airport is also one of a number of
significant development nodes in the region. The West Rand has the opportunity to become the
future blueprint for urban growth models that emphasize sustainable development.
19 2012/13 Annual report
2 CORPORATE GOVERNANCE
Shareholder Governance Relationship
To re-iterate once more, the WRDA was established through Council Resolution and registered
as a private company with limited liability (Pty Ltd) in February 2005. It is a Municipal Owned
Entity (MOE), and in terms of its 2008 Service Delivery Agreement it is established and
controlled by the West Rand District Municipality (WRDM), although the four local municipalities
within the district have committed themselves to full support of the WRDA. The commitment will
be in the form of annual contributions to the operational costs of the Agency. The expected
return on investment from these contributions is increased capital stock investment that will lead
to an increase revenue base, job opportunities for local people and better social cohesion for
communities in the respective municipalities. Importantly West Rand municipalities will be able
to increase service delivery output as they will have the means due to increased revenues to
deliver through increased capacity and the ability to procure the required goods to provide
service to citizens.
The WRDA is established as State Owned Company and is not a Municipal Department,
Specialised Service Delivery Unit or Trading Entity, and is equally not established as a Not for
Profit Company (previously Section 21). The relationship framework and how the WRDA
interacts with shareholders is represented below:
WRDM Municipal Manager
WRDA CEO
WRDA
Board of Directors
District Executive Mayor
Sectio
n 8
0
LE
D
Co
mm
ittee
Sectio
n 8
0
Fin
an
ce
Co
mm
ittee
LED Manager
West Rand District Municipality
Council
WRDM CFO
Westonaria LM
Merafong LM
Randfontein LM
Mogale City LM
WRDA GOVERNANCE AND REPORTING RELATIONSHIP
MMC LED *Ex
* MMC LED AND LED MANAGER are Ex Officio on the WRDA Board of Directors
20 2012/13 Annual report
Board establishment and Composition
Shareholder commitment to ensure proper corporate governance was evidenced in the
appointment of the board of directors and through the provision of critical support functions for
the Agency, although the ideal is still to be achieved. August 2012 saw the resignation of the
Interim Board of the Agency, these were largely officials from West Rand municipalities who
were assigned to assist the Agency during the transition period. They are listed below
NAME DESIGNATION GENDER MUNICIPALITY
Thabo Ndlovu Chairperson Male Westonaria
R Mokebe Ordinary Board Member Female Mogale City
Thys Wienekus Ordinary Board Member Male Merafong
Ivan Mashego Ordinary Board Member Male Randfontein
The Board was appointed on the 6th August 2012 by the Executive Mayor as per the Municipal
Systems Act 32 of 2000 [ss93 (e)]. It comprises of 9 independent directors, including the
Chairperson with varied and extensive experience in their respective professional fields. The
directors‟ appointments are based on their ability to contribute appropriate skills and time
required to guide the operations and development of the agency. The period of appointment is
36 months and will be reviewed by the shareholder at the end of term, including an annual
assessment of board performance. The table below lists the board members.
NAME DESIGNATION GENDER PROFESSION
Simon Moeketsi Mohapi Non- Executive Chairperson Male Financial
Advisor
Christa Petronella Venter Non-Executive Deputy Chairperson Female Environmental
Strategist
Dipapiso Maxwell Ramagaga Non-Executive Director Male Accountant
Yolanda Deborah Christelle
Don-Pierrot Non-Executive Director Female Auditor
Nathaniel Modibe Ramodibe Non-Executive Director Male Industrial
Psychologist
Teboho Michael Sejake Non-Executive Director Male Social
scientist
Nelson Dumisani Ndlovu Non-Executive Director Male Agriculturist
Queeneth Ntombikayise Nkosi Non-Executive Director Female Auditor
Zanele Mazibuko
Non-Executive Director Female
Political
scientist
Board Committees
The board exercised its discretion on the governance structure required and some of the board
committees were merged as there were synergies for effectiveness of board operations.
Importantly this approach was to maintain costs of board operations at a minimal level given the
budgetary challenges of the agency. Through the assessment process the critical
21 2012/13 Annual report
subcommittees that were deemed necessary and further comply with statutory requirements
were established, namely the following:
Finance, Audit and Risk
Human Resource and Remuneration
Tender and Projects
Board members were subsequently assigned to capacitate the subcommittees and undertook to
develop the Terms of Reference and subcommittee charters, which were adopted by the board
in May 2013.
COMMITTEE COMPOSITION
Finance Audit and Risk Management Maxwell Ramagaga – Chairperson
Modibe Ramodibe Queeneth Nkosi Teboho Sejake Debbie Don-Pierrot
Human Resources and Remuneration committee.
Christa Venter - Chairperson Queeneth Nkosi Dumi Ndlovu Zanele Mazibuko Modibe Ramodibe
Tender and Projects committee.
Teboho Sejake - Chairperson Dumi Ndlovu Christa Venter Zanele Mazibuko Debbie Don-Pierrot Maxwell Ramagaga
Committee representation by board members
QN – Queeneth Nkosi, TS – Teboho Sejake, DM – Dumi Ndlovu, CV – Christa Venter, ZM – Zanele Mazibuko, DDP
– Debbie Don-Pierrot, MR – Modibe Ramodibe, MDR – Maxwell Dipapiso Ramagaga
Board Responsibilities and Duties The Board of Directors of the agency subscribes to the letter and spirit of good corporate
governance expressed in King Code III and the Code of Conduct for Directors referred to in
section 93L of the Municipal Systems Act, 2000 (as amended). The Board recognizes the need
to conduct the affairs of the municipal entity with integrity to ensure increased public confidence
COMMITTEE BOARD MEMBER
SM QN TS DN CV ZM DDP MR MDR No. MEMBERS
Finance Audit & Risk 5
HR & Remuneration 5
Tender & Projects 6
22 2012/13 Annual report
and the confidence of its parent municipality. It is the policy of the Board to actively review and
enhance the entity‟s systems of control and governance to ensure that the entity is managed
ethically and within prudently determined risk parameters.
The board operates within a unitary structure that provides for interaction among all board
members in the decision-making process on strategy, planning, performance, allocation of
resources, business ethics and communication to stakeholders.
The board ensured that immediately after appointment, it embarks on a process to assess the
state of the agency and to review the governance structures of the agency that were previously
established. The governance structures in the form of committees, assist the board in
discharging its duties through a system of delegations. However the board has the ultimate
responsibility for the oversight, management and strategic direction of the agency.
Accountability to the shareholder remains paramount in board decisions.
The duties of the WRDA Board are to:
Provide effective, transparent, accountable and coherent oversight of the WRDA‟s affairs;
Ensure that the WRDA complies with all applicable legislation, the Service Delivery
Agreement and the various shareholder policy directives issued by its parent municipality,
from time to time;
Deal with the parent municipality in good faith and communicates openly and promptly on all
pertinent matters requiring the attention of its shareholder;
Determine and develops strategies that set out the purpose, and values in accordance with
the shareholder mandate and strategic documents such as the IDP;
Review and approve financial objectives including significant capital allocations and
expenditure as determined by the parent municipality; and
Consider and ensure that the entity‟s size, diversity and skills make up are efficient to
ensure that the entity is able to achieve its strategic objectives.
Board Meetings:
6 board meetings were held during 2012/2013 financial year. The board schedule of meetings is
once a quarter (four times per year). Two special board meetings were held, i.e. an urgent
board meeting on 07 December 2012 to approve the appointment of the CEO and another one
on 18 January 2013 to approve the Mid-Term Budget. The board also undertook a full day
excursion to the project sites of the agency on the 26th March 2013 to assess firsthand the state
and operations of the projects.
23 2012/13 Annual report
BOARD MEETING ATTENDANCE APOLOGY
03 October 2012 Ordinary board meeting 100% None
06 November 2012 Ordinary Board Meeting 100% None
07 December 2012 Urgent Board Meeting
(Appointment of CEO)
100% None
18 January 2013 Special Board Meeting
(Mid-Term Budget)
100% None
06 March 2013 Ordinary Board Meeting 88% Ms Christa Venter
26 March 2013 Board excursion and
projects review
100% None
14 June 2013 Ordinary Board Meeting 88% Ms Debbie Don Perriot
Board Committee Meetings
The Board committees commenced with their respective duties from quarter 2 onwards, given
that the first Board meeting took place during the month of October. This was necessitated by
the fact that after appointed the board had to familiarize itself with relevant and pertinent
information on the Agency and it functions as they still undergoing induction during the first
quarter. Furthermore Board members were assigned to their respective committees during this
first Board meeting.
COMMITTEE ATTENDANCE APOLOGY
Finance, Audit and Risk Committee
20 November 2012 100%
23 January 2013 100%
13 February 2013 100%
29 May 2013 60% Mr Teboho Sejake Ms Queeneth Nkosi
HR & Remuneration Committee
18 October 2012 100%
13 February 2013 80% Ms Zanele Mazibuko
29 May 2013 100%
Tender and Projects Committee
19 November 2012 100%
13 February 2013 100%
29 May 2013 80% Mr Teboho Sejake
Corporate Code of Conduct
The board is committed to:
The highest standards of integrity and behaviour in all its dealings with its stakeholders and
society at large;
Carrying on business through fair commercial and competitive practices;
Eliminating discrimination and enabling employees to realize their potential through
continuous training and development of their skills;
24 2012/13 Annual report
Being responsible toward environmental and social issues; and
Ensuring that each of its directors declare any direct or indirect personal or business interest
that might adversely affect such director in the proper performance of his/her stewardship of
the entity
Interest in contracts and related party transactions
Board members disclose and/or declare their private business interests periodically as required
by the Declaration of Interest and Confidentiality Policy. In addition, they are required to declare
their interest on any agenda item at every Board meeting. A register of interests is maintained
by the Company.
Full disclosure of transactions with related parties is set out in a note to the financial statements.
Similarly, when engaged in business dealings on behalf of the WRDA, employees are expected
to avoid activities that might give rise to conflicts of interest. Employees are also expected to act
in the exclusive interests of the WRDA. Procedures have been put in place to deal with conflicts
of interest where these arise in the course of employees‟ daily activities.
Internal control
The Board has the ultimate responsibility for establishing a framework for internal controls,
including an appropriate procurement and provisioning system. These controls focus on critical
risk areas identified by operational risk management, confirmed by executive management and
endorsed by the WRDM internal auditors.
The controls are designed to provide cost-effective assurance that assets are safeguarded and
that liabilities and working capital are efficiently managed. Organisational policies, procedures,
structure and Delegations of Authority provide direction, accountability and segregation of
responsibilities. Management and the WRDM internal auditors closely monitor the controls and
the actions that are taken to correct deficiencies as they are identified.
Risk Management
Risk management is about identifying and assessing key risks, designing and implementing
strategies and processes by which those risks can be managed, and continually reviewing
25 2012/13 Annual report
processes to ensure that risks identified have been mitigated to a level that is acceptable to the
relevant stakeholders. In accordance with this philosophy, the WRDA has recently employed an
approach that incorporates all these principles through the guidance of the AFR committee. By
establishing and adopting this set model, the WRDA has ensured that a consistent and logical
approach to risk management will be applied.
The AFR committee has assessed the register of strategic risks as compiled by the external
auditors and have reviewed it on the basis of the impact it might have on the business.
The risks in the schedule below have been identified and listed in the register of strategic risks.
Processes initiated to address them, however not all could be fully addressed owing to limited
financial and human resource capacity in the WRDA:
Strategic Risks
Strategic Risks identified 2012/13
1 No company secretary to support and guide the activities of the board in order to align strategic objective, stakeholder requirements and legislative compliance.
8 No insurance for Board & Management Indemnity Cover
2 Tax status of WRDA not finalised 9 Inability to access funding over and above those obtained from the WRDM
3 Skills development levies not paid over 10 Potential negative perception of the WRDA performance by stakeholders
4 Inadequate procedures surrounding revenue collection
11 Inadequate branding
5 No fraud prevention plan in place 12 No support systems
6 Lack of backup in case of CEO resignation not in place.
13 Non-compliance with regards to various MFMA and SCM regulations with regards to the supply chain
7 Non-compliance with MFMA reporting deadlines and statutory requirements
14 Status of Plastic Recycling Business not finalised
Sustainability
The Board and management take responsibility for ensuring the implementation of sustainability
(economic, social and environmental) to all business practices. The WRDA aspires to a
compliance approach, which endorses the following principles and commitments:
High standards of integrity and fair dealings in the conduct of the WRDA‟s business
26 2012/13 Annual report
Compliance with both the letter and the spirit of the law
Accountability to the Shareholder and other stakeholders such as regulators, clients,
employees and the business community at large
Commitment to the duty of care, skill and diligence
Embracing the principles of integrity, transparency and accountability
Approved policies and guidelines
Level of application Policy and/or Guideline
Board WRDA Board Charter
Audit, Finance, and Risk Management Charter
Human Resources & Remuneration Charter
Tender and Projects Charter
Management and Staff Delegations of Authority
Conflict of Interest Policy
Code of Conduct
Investment Policy
SCM Policy
Remuneration Policy
Leave Policy
Skills Development Policy
Board Committee Reports
The directors of the West Rand Development Agency regard corporate governance as
fundamental to the success of the business and are fully committed to good governance so that
the Company has a set of predictable processes, customs, policies, laws, regulations and
institutional practices to which it adheres and which affect the manner in which it is directed,
controlled and managed.
27 2012/13 Annual report
WRDA ensures that its processes and practices are reviewed and benchmarked on an ongoing
basis to ensure compliance with legal obligations and those funds are employed in an
economic, efficient and effective manner. Compliance, not only with the letter, but also the spirit
of relevant governance codes and the law, remains a priority for the organization.
The reports from the Board Committees are listed in the following order:
Audit, Finance and Risk Committee
Human Resource and Remuneration Committee
Projects and Tender Committee
Audit, Finance and Risk Committee Report
We are pleased to present our report for the financial year ended 30 June 2013.
Audit committee attendance
The audit committee consists of the members listed hereunder and should meet 4 times per
annum as per its approved terms of reference. During the current year 4 meetings were held.
Audit committee responsibility
The audit committee reports that it has complied with its responsibilities arising from section
166(2)(a) of the MFMA. The audit committee also reports that it has adopted appropriate formal
terms of reference as its audit committee charter, has regulated its affairs in compliance with
this charter and has discharged all its responsibilities as contained therein.
The effectiveness of internal control
The system of internal controls applied by the entity over financial and risk management is
effective, efficient and transparent. In line with the MFMA and the King III Report on Corporate
Governance requirements, Internal Audit provides the audit committee and management with
assurance that the internal controls are appropriate and effective. This is achieved by means of
the risk management process, as well as the identification of corrective actions and suggested
enhancements to the controls and processes.
From the various reports of the Internal Auditors, the Audit Report on the annual financial
statements, and the management report of the Auditor-General South Africa, it was noted that
no matters were reported that indicate any material deficiencies in the system of internal control
or any deviations therefrom.
28 2012/13 Annual report
Accordingly, we can report that the system of internal control over financial reporting for the
period under review was efficient and effective. The quality of in year management and
monthly/quarterly reports submitted in terms of the MFMA and the Division of Revenue Act.
The audit committee is satisfied with the content and quality of monthly and quarterly reports
prepared and issued by the board of the entity during the year under review..
Evaluation of annual financial statements
The audit committee has:
reviewed and discussed the audited annual financial statements to be included in the
annual report, with the Auditor-General and the board;
reviewed the Auditor-General of South Africa's management report and management‟s
response thereto;
reviewed changes in accounting policies and practices (delete if not applicable);
reviewed the entities compliance with legal and regulatory provisions;
reviewed significant adjustments resulting from the audit.
The audit committee concur with and accept the Auditor-General of South Africa's report the
annual financial statements, and are of the opinion that the audited annual financial statements
should be accepted and read together with the report of the Auditor-General of South Africa.
Internal audit
The audit committee is satisfied that the internal audit function is operating effectively and that it
has addressed the risks pertinent to the entity and its audits.
Auditor-General of South Africa
The audit committee has met with the Auditor-General of South Africa to ensure that there are
no unresolved issues.
Chairperson of the Audit, Finance And Risk Committee
29 2012/13 Annual report
Human Resources and Remuneration Committee Report
The Human Resources Committee are established by the West Rand Development Agency
(WRDA) Board in order to assist the board to fulfill the human resources management functions
and responsibilities in accordance with prescribed legislation and corporate governance
principles. The primary objective of the Human Resources and Remuneration Committee is to
assist the Board in discharging effective human resources management by reviewing the
effectiveness of the WRDA‟s human resources management systems, practices and
procedures, and providing recommendations for improvement, and also ensuring compliance to
legislation.
Roles And Responsibilities.
Human Resource and Remuneration Committee duties
The duties are:
Development, revision of the human resources management strategy and recommend
for approval by the Board of Directors.
Oversee the human resources function within the WRDA, ensuring that it is fit for its
purpose and helping to strengthen and develop it.
Oversee and monitor the implementation of human resources policies and procedures.
Establish and regularly review a set of human resource indicators.
Ensure that human resource perspective is represented throughout the strategy and
policy frameworks of the WRDA.
Report to the Board of Directors any material changes to the human resources risk
profile of the WRDA.
Ensure effective implementation of skills development programmes in line with human
resource development strategy.
Ensure equalities in employment and promote diversity.
Oversee, develop and monitor recruitment and retention strategies.
Identify and secure resources to support the development of human resources. Review
the human resources management policy and recommend for approval by the Board of
Directors.
Evaluate the effectiveness of the implementation of the human resources management
policies.
Provide proper and timely reports to the Board of Directors on the state of human
resources management, together with aspects requiring improvement accompanied by
the Committee‟s recommendations to address such issues.
We report that we have adopted appropriate formal terms of reference in our charter. We
further report that we have conducted our affairs in compliance with this charter although there
were limitations due to financial constraints of the entity.
Chairperson of the Human Resources and Remuneration Committee
30 2012/13 Annual report
Projects and Tender Committee Report
The primary objective of the Committee is to assist the board in discharging effective
management of projects and effectiveness of the WRDA‟s project and procurement
management systems, practices and procedures, and providing recommendations for
improvement, and also ensuring compliance in relation to supply chain management and other
relevant legislations.
Our duties are:
• Development, revision of project management and procurement strategy and
policies and recommend for approval by the Board of directors.
• Oversee and monitor the implementation of project and supply chain
management policies and procedures.
• Establish and regularly review a set of project indicators.
• Report to the Board of directors any material changes to projects.
• Ensure effective implementation of projects and supply chain management
policies and procedures.
• Identify and secure resources to support projects.
• Provide proper and timely reports to the Board of directors on the state of
projects and supply chain management, together with aspects requiring
improvement accompanied by the Committee‟s recommendations to address
such issues.
We report that we have adopted appropriate formal terms of reference in our charter. We
further report that we have conducted our affairs in compliance with this charter and the supply
chain policy of the WRDA
Chairperson of the Tender and Projects Committee
31 2012/13 Annual report
3 PERFORMANCE
Key highlights
The agency has fairly managed to keep operational despite the immense challenges it has
faces. The commitment by the shareholder has ensured that there is constant support in critical
operational areas for the agency to continue being a going concern. Furthermore, there was a
measure of normalisation that was created by the Ex-interim board and the acting CEO, with
regards to regularizing the planning and setting of performance objectives of the agency as
required by the MFMA.
During the tenure of the Interim board, the agencies 5 year strategic plan, and SDBIP were
developed for the 2012-13 financial year compared to the 2011-12 financial year, given that the
planning focus of the former were to keep operations active and this is evident in the key
performance areas of the SDBIP.
The main achievement during this reporting period was the normalization of the leadership of
the agency in terms of the appointment of the board in August 2012 and subsequent
appointment of the CEO in March 2013. The board appointments were concluded after a
lengthy and thorough process that was initiated in the previous financial year. This process
besides being in compliance with the Companies Act, was informed by the Turnaround strategy
developed by the Ex-interim board.
Secondly the board undertook an intensive strategic review of the agency and its mandated
functions in conjunction with the shareholder, in a well-attended strategic planning session. The
strategic planning planning process resulted in redefining the mission and objectives of the
agencies and resulted in a refreshed 5 year strategic plan, 3 year business plan and SDBIP for
the 2013-14 financial year and is much in alignment with the requirements set out by the
treasury requirements.
Besides the above, there was a concerted effort on the part of the board and management to
review and where necessary develop guiding policies for corporate governance and operation
processes. The board and committee charters were developed as well as a risk register, which
identified critical areas for intervention. Review of other operational policies was initiated,
especially in terms of the delegations of authority, Supply Chain, Human Resources
Management. In addition the board issued the directive for the development of absent
operational policies such as the IT, communications, Revenue management that are specifically
32 2012/13 Annual report
customized for agency operations because the previously the default position was to utilize
WRDM policies. Finalization and adoption of some these will be in the coming financial year,
owing for the need to ensure that they are properly benchmarked against best practice from
similar organizations.
As stated earlier, the agency is faced with numerous challenges which have been highlighted in
various reports over the past and current financial year. The most pressing of these challenges
identified is in terms of the institutional arrangements, the lack of human and financial capacity.
A number of these challenges have been known to the agency and others identified through the
risk register as well as the audit report from the Auditor General. Although all issues are being
attended to, not all were managed to be addressed in this financial year given the current
constraints and limited time to implement solutions.
The strategy planning session of the agency highlighted that amendments are required to be
undertaken to the classification and ownership of the WRDA. Essentially the agency represents
the entire region and is therefore owned by all the municipalities of the West Rand as
shareholders. An assessment has been done and the following have to be addressed:
Promulgation/or approving By-Law for establishment of the WRDA by District and Local
Municipalities. This is required for the proper enablement of the WRDA as per regulation
and treasury guidelines
Amendment to the share capital and issuing of ordinary shares to all shareholders. This will
also address the ownership aspects of the agency that have created a challenge
Registration and listing of the agency with National treasury as a State Owned Company
(SOC) as per requirement with MFMA and CIPC
Projects ring fencing and clarification on the institutional arrangement with regard to the
current 3 projects in the agencies books. Besides Kathlego Facility, Donaldson Dam and
Plastics are grey areas which need to be verified with the assistance of commercial lawyers
and the district legal unit.
Following the conclusion of the Strategic Planning process and development of the
Business Plan, the Service Delivery Agreement (SDA) has to be concluded with the
shareholders. The current SDA is outdated and needs review.
33 2012/13 Annual report
Operational highlights
Assessments were undertaken on a number of areas that were observed in the operational
environment of the agency and corrective measures were identified to be instituted.
Management processes have been strengthened in terms of a number of operational areas
which were previously identified in audit and performance reports of the agency as follows:
Weekly management meetings have been implemented and regularized since April 2013,
this has improved information flow within the agency and has assisted in the proactive
identification of project related risks;
A registry establishment exercise has been initiated to improve document control for head
office and agency projects. This will assist in improving the agencies compliance with the
records management requirements as stipulated in the Records Management Act.
Furthermore a process to review all files with the intention to take stock and list properly all
files and contents within was started. The exercise has already yielded early results as there
were volumes of similar documents in differently marked files. The duplicate documents will
be archived as per requirements of the Act and also in line with disaster recovery practices
to archive records offsite. In addition the proper document management will improve issues
of access to information as prescribed by the PAIA.
The financial management aspects of the agency have been identified as a crucial area for
intervention. In this financial year, there was migration from the BIQ to Munsoft financial
management system by the WRDM and by extension the agency as well. Therefore
capacity to handle the financial management function of the agency has been prioritized.
The IT and communication Infrastructure requirements have been specified in terms of the
systems and support measures required by the WRDA. The IT plan will be used for the roll
out in the agency and project sites. Furthermore in trying to manage costs, a single
communication interface will be implemented that connects the project sites to head office
for better management and reduced costs for communication.
34 2012/13 Annual report
Project highlights
The WRDA currently consists of three projects, namely, Plastic Recycling Centre in Westonaria
and the Mohlakeng Buy Back Centre; Donaldson Dam Resort and the Katlego Cultural Facility.
All three of the projects are, in their current form, unsustainable and are under significant
financial strain. Decisions have been taken on a turnaround or exit strategy for each project, and
of particular importance is to ensure the facilities are adequately funded and maintained and are
fit-for-purpose.
Donaldson Dam
The Donaldson Dam Resort is a municipal recreation facility that was provided on a goodwill
basis by the mines in the area in 1953. Previously the facility was under the umbrella of the
Western Regional Council Services (WRCS) It consists of portion 29 Gemspost 288 IQ (116.5
hectares) and portion 1 Nelshoogte (7.4 hectares) for total of 123.9 hectares. In terms of
approved land use, the property is zoned as an enclosed leisure area. (Surface Rights Permit
No 41/1963), besides the resort, 3900 sqm is zoned for restaurant and fresh produce
market. (Mining Rights Act 1967, Grant No 6.70)
Donaldson Dam is located in the Westonaria Local Municipality. Bekkersdal and Mohlakeng
townships in the Southern and the Western side border the Dam. The other sides of the Dam
are covered by farming and agricultural activities council. Further the unfenced portion of
Donaldson Dam, where the gliding airstrip is located has been invaded by squatters, which is
the southern side of the facility. Donaldson Dam is supplied by water from the surrounding
mines. Currently the Dam is divided into two portions referred to as the bottom lake and the top
lake. A wall divides the two lakes. The bottom lake is currently in use by non-members who
pays an entrance fee to catch and release Carp.
Over the past years and including this financial year, there have been attempts to rejuvenate the
facility by attracting an investor/developer to refurbish and operate Donaldson Dam. This
process has largely been unsuccessful. The latest round undertaken, the technical evaluation
for the tender issued for the refurbishment of Donaldson Dam was completed, and the results of
the technical evaluation were not positive given the quality of proposals received. Given these
outcomes, the process was terminated and a different approach will be taken in the coming
financial year, to rather instigate redevelopment incrementally and apply a multi concessionary
model to crowd in interested enterprises in the leisure and tourism industry.
35 2012/13 Annual report
An assessment of the state of infrastructure at Donaldson dam was conducted, and the
assessment report has provided basic estimates on the cost to bring the facility to a decent
operating level. As is the facility is in a shocking state of dilapidation. The major concern is the
breach of the perimeter fencing which has been considerably scavenged in some sectors,
posing liability risks for the agency. Furthermore a number of buildings that were previously in
place have to be rebuilt and refurbished.
There are a number of gaps in compliance issues that have to be addressed at the facility,
notably the issue of safety and environmental management. Solutions to these are being
investigated and may involve other relevant parties/District Divisions with the capability to
support the agency in relation to the compliance gaps identified.
The controls implemented at the facility have been identified for enhancement to ensure that
shortcomings that were identified by the audit report are not repeated. A solution has been
identified to automate entry and provide real-time revenue reconciliation as well as surveillance
of the gate post. Implementation will be effected in the coming financial year
The tariffs and admissions policy of the facility will be reviewed, firstly to comply with
requirements of the MFMA in terms of publicizing the tariff structure and secondly, with regards
to admissions to allow for restrictions to be applied to patrons entering and leaving the facility.
This is necessitated by the fact that the management has been made aware by the public that
some patrons are entering with firearms, which are prohibited and that there has been theft of
fish specimen by some anglers.
There are number of considerations that have to be taken into account in terms of the work that
is required to turn the fortunes of the facility. These need to be viewed from a total solution
perspective as they have a bearing on the involvement of the agency with the facility.
Demand for leisure activities to be explored in respect of the types of leisure activities to be
engaged in. Reconfiguration of specifications must be structured so as to improve the
prospects of possible partnerships to the benefit of the community. Whether it be with fishing
and sporting associations to host regular events and to bring on board the disadvantaged
community to participate in these sporting codes. Furthermore given the history of the facility
with the mines in the area a possible avenue for worker recreation clubs can be arranged to
be rooted the facility as well as worker outings. This can provide a considerable revenue
base for the facility
36 2012/13 Annual report
Environmental Management of the surrounds, the wetlands and waterways will be crucial.
There are two sources of contamination which must be actively managed. Ecoli bacterial
contaminated water (from raw sewerage) flows from Mohlakeng and the Flip Human
Sewerage processing plant into the dams. (Both Municipal responsibilities which must be
addressed). The heavy metals from the mines which has contaminated the sediment with
uranium. The above contamination poses a serious health risk which impacts on the dam‟s
feasibility and increases the risk profile of the WRDA, in relation to the Water Act.
Encroaching urbanization to be addressed, if the population surrounding the facilities are not
accommodated in some way the perceived outlook will be that it‟s a play pen for the more
privileged and it will be vandalized even more. This will as alluded earlier put off any
potentially interested parties to want to be involved with redevelopment of the facility
There are considerations which have been adopted by management on proposals which will
provide redevelopment direction for the facility and to lead to higher patronage. There are
sources identified in which funding can be raised for some of the proposals especially from
National and Provincial Government given the focus on tourism infrastructure and
environmental management. Furthermore the unbundled approach to multi-concessioning
commercial opportunities may be enticing for developers wary of taking the huge risk associated
with taking on the entire development.
Katlego Cultural Facility
The project Katlego Cultural Facility (KCF) Project is located within the Cradle of Humankind,
world Heritage Site (COHWHS) at the Rhino and Lion Nature Reserve (RLNR) on land that was
donated to the West Rand District Municipality (WRDM) by the RLNR. The exact size of the
donated land is 3.4590 Hectares, comprising of portion 68 of the farm Kromdraai 520 JQ.
The KCF is a venture jointly initiated by the RLNR and WRDM as part of their on-going Local
Economic Development initiative and will contribute to the establishment of a self-sustaining
SMME tourism business next to the RLNR.
An infrastructure assessment of the Katlego Cultural Facility (KCF) has been undertaken and
there are some service utilities which are not present at the facility. The estimated costs to
extend those utilities to the facilities to the site of the facility have been calculated. Due to phase
37 2012/13 Annual report
1 of the facility having been constructed a while back, there is a need to undertake maintenance
work to bring it close to operational readiness.
The institutional arrangements for the KCF special purpose vehicle were not finalized this
financial year and a process has been mapped with RLNR to develop a two tiered institutional
model, that will separate the property holding and operations, the former will involve the WRDM
and RLNR as shareholders. The institutional model and operational model will be finalized and
implemented in the 2013-14 financial year.
Enquiries have been received from parties interested in utilising the facility for commercial
operations and they have been duly registered to be invited once the facility is ready for market.
The probability will be to offer the use of the facility on a concessionary basis and the final
model to be applied will require the approval of all stakeholders involved in the facility, including
the community beneficiaries that will be integral to the management and operations of the
facility.
Plastics Recycling
The plastic recycling initiative was setup to gain access in the recycling, supply and distribution
of plastics. The objective of the project is to address the imbalances of the past and is meant to
encourage empowerment of historically disadvantaged communities. The aims are to contribute
to the following goals of WRDM:
to improve the District‟s waste management services and the District‟s environmental
sustainability,
to reduce unemployment and poverty, and
To further facilitate economic empowerment of its people.
The project produces plastic refuse bags through the processing of waste plastics. The process
entails the sorting of plastics into various types and grades, washed and fed into a granulator,
producing fine granules. The granules are fed into an extruder, which produces plastic pellets.
The pellets are fed into a processing machine, where the pellets are melted, filmed, rolled and
cut into bags.
38 2012/13 Annual report
The plant is supplied by registered waste picker cooperatives. When fully productive, registered
waste collection companies / co-operatives will provide plastic material to the factory. The
project in its current form has created 14 permanent and 10 casual jobs. Communities from
Bekkersdal, Simunye, Mohlakeng and Westonaria collect plastic bags which are then sold to the
plant
Previously the Plastics Recycling Factory (RRF) and the Buy Back Center (BBC) were
considered separate projects, however these facilities should be considered as one system as
is the case internationally. As part of the turnaround to improve the value proposition of these
projects, they will now be considered as a Municipal Environmental Recycling Cluster (MERC).
The RRF security requirements have been reviewed since the theft of the electrical cabling and
a remote security solution has been approved for implemented as well as surveillance
equipment linked to a security control room.
The process of procuring the electrical cabling has been initiated and District Supply Chain
Management is assisting the agency in this regard. However delays have been encountered
because the service providers that responded to the bulletin are apparently not in compliance.
The Supply Chain Management Office has acted to resolve this challenge and to fast track
procurement of the required cabling as this delay is affecting productivity of the factory.
The BBC construction in Mohlakeng is bedevilled with many challenges and a thorough review
has been undertaken and issues for remedy have been identified. The institutional as well as
project management challenges will be rectified as relevant parties involved have been engaged
and solutions have been identified. The remedies will call for some of the current arrangements
to be curtailed to expedite completion of the BBC within a reasonable cost frame. Unfortunately
given the form of contractual arrangement (turnkey contract), the agency cannot intervene
unless if to rescind the contract based on proper evidence of lack of delivery and/or changes to
scope of work with the current service provider.
The intent behind the project was well meaning, however the manner in which it was structured
has created most of the challenges experienced. The project has to be successfully turned
around to rebuild the credibility of the agency as a project implementor as well to place the
agency at the forefront of Green IQ, a key programme of the WRDM.
In light of this it is important to review the agencies involvement in the project and the outcomes
which is intended. It is very clear that the agencies involvement in this project was to be catalytic
39 2012/13 Annual report
in nature and lead to the emergence of viable recycling sector and associated industries in the
region. The following proposal is therefore to be considered in terms of the agencies
involvement that would be underpinned the basis of providing interventions in three areas –
Sector support – this is to differentiate the level of intervention in order to ensure that macro
issues are addressed. Therefore in this regard the project should be redefined rather as a
programme i.e. a Municipal Recycling Cluster (MERC) as stated earlier. In this instance two
sectors are being support being the recycling and plastics sector
Enterprise development – to ensure economic transformation and emergence of SMME and
Cooperatives. The agency will be to transform the current Plastics Factory into an incubator
for plastics related industries. The opportunity exists to develop a base of suppliers that can
be inducted into government and private (mines) procurement programmes. Furthermore
other implementation support partners can be roped on board to assist with the operations
of the incubator and to provide on-site incubation support.
Economic Infrastructure – it is noted that productive infrastructure is in short supply to
support emerging enterprises. Therefore the MERC will be providing an intervention is this
area of ensuring that productive economic infrastructure is provided.
The turnaround is within the reach of the agency and furthermore this will provide an opportunity
to focus on sector and enterprise development. There are funds identified at national institutions
that will be applied for, in order to expand the scope project dependent on the overall sector
strategy and business model presented.
Investment Facilitation
This function of the agency for this financial year was largely demand driven and the provision
of this service was driven through enquiries received or referred by other departments in the
municipalities and provincial departments. This situation of reacting and not being proactive was
largely to the capacity limitations in the agency and lack of budget to undertake investment
promotion activities. Furthermore the operational priorities were on normalization of operations
and developing turnaround solutions for the agencies current projects. None the less, there was
investment facilitation activities described below:
40 2012/13 Annual report
Croplands Pty Ltd, a local subsidiary of an Australian based farming implements
manufacturer and assembler approached the agency with a view of establishing its South
African plant in the West Rand. They were assisted with identifying possible locations for
their factory and wit access to the municipalities of Westonaria and Randfontein.
MIA Musical Instruments, a local startup company, enquired on establishing its base of
operations in the West Rand. The company has received commitments from the Department
of Trade and Industry and a majority of their output is destined for export markets. The
company as part of its model will be developing fabrication skills targeting youth. The
agency facilitated access for the company with the municipality of Randfontein for facilities.
Genan Africa Pty Ltd, a local subsidiary of Danish based recycling solutions company,
approached the agency to enquire on possible land availability and incentive support. The
company intends establishing a tyre recycling facility. The agency identified land parcels and
facilitated visits to sites in Westonaria and Mogale City municipalities.
Msibi Holdings, a local company with Canadian technology partners, approached the
agency with the view of establishing a tyre recycling depot and pyrolysis plant. The company
was facilitated with access to Westonaria Local Municipality.
Partnerships
The agency has continued to engage with various potential partners in the implementation of its
mandate. There have been various engagements with public and private sector organisations to
explore mutually beneficial projects. In this financial year discussions took place with the
following organisations:
Siyafunda, a non-governmental organization focusing on IT skills development
Chamdor Training Facilities, a non-governmental skills training facility
Gauteng Department of Economic development – Green Economy Programme Office
The Gauteng Growth and Development Agency
In terms of the GGDA, it has prioritised the establishment of the Gauteng Investment Centre
(GIC) as one its implementation programmes for trade and investment promotion. The GIC has
been conceptualised as a one-stop shop for investor engagements and aftercare services.
During the month of March, the GGDA engaged the WRDA with the intention to seek
participation of the West Rand region in the GIC. The model for the GIC is to create a marketing
41 2012/13 Annual report
presence of all Gauteng regions at the region and furthermore to have GIC satellites in the
regions set up as part of the expanded roll out. . A draft MoU which covers all issues of
cooperation has been drafted by the agency and submitted to the GGDA for their consideration.
It will be finalized for adoption and implementation in the next financial year as it is awaiting
review from the GGDA legal department.
Reporting
2012/13 budget adjustment.
The WRDA budget adjustment was done, approved by the board and submitted to the
WRDM.
Mid-year budget 2012/13 and performance assessment (MFMA section 88).
Completed and approved by the board and submitted to the WRDM.
MFMA section 87 monthly reports.
All 12 twelve monthly reports were compiled and submitted by WRDM on behalf of the
agency to the WRDM since the resignation of the agency‟s bookkeeper in 2012.
Section 80 LED reports
All 12 monthly reports were compiled and submitted by the WRDA to the LED Unit of the
WRDM.
42 2012/13 Annual report
4 ORGANISATIONAL DEVELOPMENT
Staff Establishment
The most critical challenge currently facing the WRDA is capacity in terms of financial and
human resources as well as establishment design flaws. These have been identified and a
process is underway for 2013/14 to address these problems with the shareholders, which are all
municipalities in West Rand.
5 staff members are in the employ of the WRDA; namely:
Chief Executive Officer.
Personal Assistant.
Administrative Officer.
Project Assistant.
Cleaner.
The WRDM has seconded a senior manager to assist the Plastics Project
Current organizational structure
As stated earlier in this document, a strategic review took place and within the context of the
WRDA strategic and tactical framework the following figure reflects the recommended reporting
level 1 and 2 functional design believed to be most appropriately matched to ensuring delivery
of the strategy, as from 2013/14:
CEO
Project Management
Project Management
Finance and administration
Board of Directors
Bookkeeper
Receptionist
Management Accounting
Research and
Information
Enterprise Development
Investment & Trade
promotion
Project Management
Company Secretary
Internal Audit
Personal Assistant
43 2012/13 Annual report
LED
Departments
SHAREHOLDER
(District and Local
Municipalities)
CITY MANAGERS
Audit and Risk Committee
HR and REMCO Committee
Project and Procurement
Committee
Oversight, Leadership and Control of Internal Audit Services and coordination of JRAS Services in order to provide the Board with the assurance that JCPZ is a well governed and compliant organisation.
Oversight, Management and Control of Board and Committee support and administrative services and the provision of Legal advice and support to ensure the effective functioning of the Board.
Company Secretary
Internal Audit
CHIEF EXECUTIVE OFFICER
WEST RAND DEVELOPMENT AGENCY
WRDA Board
• Business Integration and Optimisation and ICT
• Marketing and communications
• Human Capital Management and Development
• Performance Management and Development
• Administration Services
Organisational Effectiveness and Corporate Support
• Budgeting and Master Budget Management
• Financial Accounting
• Supply Chain Management and targeted procurement (targeted groups)
• Contract Management
Financial Management and Control
• Supplier development and export readiness
• Export promotion and initiatives to reduce the cost of trading
• Foreign and local investment facilitation
• Support to business establishment and functioning
• External commercial funding and partnerships
Trade and Investment Promotion
• Integrated Business Services
• Targeted sector support interventions and incentives
• Identification and packaging of development opportunities
Sector Support
Recommended WRDA Reporting Level 1 and 2 Structure
Oversight, Management and Control of strategic support to the CEO and his team to achieve the strategic objectives of WRDA by focussing on:• Research and Knowledge Management• Integrated Business Planning, Performance
Monitoring and Reporting, • Risk and Compliance Management• Service Delivery Monitoring and TQM• IGR
Business Intelligence,Monitoring & Evaluation
and Assurance
• Implement strategic infrastructure interventions
• Project Planning, Oversight and Management
• A Centre of Excellence, providing capacity and competence in project management
Infrastructure Project Facilitation
Sick leave taken
It can be noted from the table above that days absent due to sick leave is minimal in the
Agency. This is due to dedication of staff as they do perform their duties even when they are not
well.
Number of days and Cost of Sick Leave (excluding injuries on duty)
Salary band Total sick leave
Proportion of sick leave without medical
certification
Employees using sick
leave
Total employees in post*
*Average sick leave per
Employees
Estimated cost
Days % No. No. Days R'
Lower skilled (Level 15-13) 12 1% 1 1 3.00 2839
Skilled (Level 13-11) 7 4% 1 1 1.75 3052
Highly skilled Production (Level 11-8)
5 0% 1 1 1.25 2784
Highly skilled Supervision (Level 8-6)
1 1% 1 1 0.25 1114
Senior Management (Level 6-3)
0 0% 0 0 0.00 0
MM and S57 3-1 0 0% 0 0 0.00 0
Total 25 1% 4 4 6.25 9788
5 PERFORMANCE SCHEDULES (SDBIP)
Strategic Goal 1: To mobilize resources for economic development projects/ programmes through partnerships
Strategic
objective/
KPA
Performance
Indicator Baseline
Portfolio of
Evidence
Annual
Target
Annual
Actual
1st
Quarter 2nd
Quarter 3rd
Quarter 4th
Quarter Explanation of
variance
Improvement Plan
Planned Actual Planned Actual Planned Actual Planned Actual
Leveraging
Funds
Project
Funding
Targeted
R3
million
Funds
transferred
R10
million 0 R10m 0
IDC commitment
to fund the agency
projects not
released due to
critical miles not
being met, i.e. an
independent
financial system
Milestones set by IDC
will be achieved by
establishing
Independence of the
agencies financial
management
Attracting
expertise
Attracting
project
expertise /
skills
New
Appointment
of skilled
Project
Manager
1 0 1 0
No budget
available
Staff establishment
concluded in budget plan
submitted subject to
approval by shareholder
Asset
mobilization
Assets
mobilization 2
Proof of new
assets
acquired
2 0 2 0
No capital budget
approved
Budget plan submitted
includes capital budget
45 2012/13 Annual report
Strategic Goal 2: To provide trade & investment promotion support in the region.
Strategic
objective/
KPA
Performance
Indicator Baseline
Portfolio
of
Evidence
Annual
Target Actual
1st
Quarter 2nd
Quarter 3rd
Quarter 4rd
Quarter Explanation of
variance
Improvement Plan
Planned Actual Planned Actual Planned Actual Planned Actual
Investment
promotion
Rand Value
of new
investments
planned
New 20m 0 10m 0 10m 0
Commitment was
received for
project supported
by agency
(agriyouth) to
tune of R30
million but funding
will be going
directly to project
management
company -
COAAC
Agency will
become co-
signatory for future
project funding
raised depending
on institutional
model agreed
No. of new
investment
planned to be
facilitated
New
No. of
new
investment
plans
4 4 2 2 2 2
Trade
Promotion
No. of
Exporters
development
planned
New
No. of
new
developm
ent plans
2 0 1 0 1 0
Lack of resources
- no database of
identified
enterprises ready
for export
development
Develop database
of export ready
companies residing
in the West Rand
and registration
portal
Rand value of
exporters
planned
New
Rand
value of
amount
facilitated
5m 0 5m 0
No exporters
assisted due to
lack of capacity in
agency
Establish
partnership with
provincial agency
to support function
for exporter
assistance
Exporters
planned to be
exposed to
new markets
versus
actual(%)
New
No. of
exporters
exposed
to new
markets
2 0 2 0
No exporters
assisted due to
lack of capacity in
agency
Establish
partnership with
provincial agency
to support function
for exporter
assistance
46 2012/13 Annual report
Strategic Goal 3: Projects management support services
Strategic
objective/ KPA
Performance
Indicator Baseline
Portfolio of
Evidence
Annual
Target Actual
1st
Quarter 2nd
Quarter 3rd
Quarter 4rd
Quarter Explanation of
variance
Improvement Plan
Planned Actual Planned Actual Planned Actual Planned Actual
Project
planning
management
No of New
project
opportunities
identified
New New project
plans 4 2 0 0 1 1 1 1 2 0
Reconfiguration
of existing
projects
Donaldson Dam
and Plastics
Factory and BBC
into regional
Municipal
Environment
Recycling Cluster
- created new
project
opportunities
Strategic review of
the agency has
highlighted area of
focus for project
development to be
aligned with
WRDM GDS,
Green IQ and
Tourism strategies
No. of
Project
scoped
New Project plans 3 3 1 1 2 2
No of Project
feasibility
assessment
planned
New
Project
feasibility
plans
2 2 1 1 1 1
Project
Implementation
management
% Project
deliverables
completion
New
Stage of
project
completion
report
100% 0 100% 0
Not completed
due to contractor
failing to perform
based on cost
escalations
Review of contract
with contractor and
addressing project
requirements to
keep cost down
Project
budget
variance(%)
New
Project
Expenditure
report
8% 0 8% 0
Project cost has
escalated due to
onerous
conditions for
land availability
on Mohlakeng
BBC by
Randfontein LM
Review of land
availability
conditions and
involve
Randfontein LM as
partner as opposed
to Landlord
Project
objectives
met(%)
New Project report 80% 0 80% 0
Not met due to
stoppage by
contractor and
dispute on project
budget
escalations
Review contract
with contractor on
delivery milestones
and terminate as
advised by
technical support
project manager
47 2012/13 Annual report
Strategic Goal 3: Projects management support services
Strategic
objective/ KPA
Performance
Indicator Baseline
Portfolio of
Evidence
Annual
Target Actual
1st
Quarter 2nd
Quarter 3rd
Quarter 4rd
Quarter Explanation of
variance
Improvement Plan
Planned Actual Planned Actual Planned Actual Planned Actual
Post project
implementati
on support
facilitation
New Project report 100% 0 100% 0
Project not
completed due to
contractor failing
and escalated
costs
Review contract
and include
Randfontein as
partner
No of
Machines
delivered
7 Delivery
notes 7 7 4 4 3 3
Plastic
Recycling Plant
Installation of
ICT hardware New
Installation
report 100% 50% 50% 0% 50% 50%
Review of model
has changed total
installation
requirements to
50%.
Assets will now be
by WRDA
Finalization of
the
Institutional
arrangements
(%)
New Signed
agreements 100% 0 100 0
Model reviewed
and incubator will
be established
instead
Incubator model to
be developed for
plastics industries
in next fin year
Operationaliz
ation of the
machines (%)
New Progress
report 100% 10% 20% 10% 20% 0 60% 0
Lack of electricity
at factory has
delayed
operationalisation
Procurement and
installation of
electrical cabling
Revenue
generated
from sales of
refuse bags
30,000
Revenue
collection
report
400,00
0 0 50, 000 0 100, 000 0 250,000 0
Lack of electricity
at factory has
delayed
production
therefore no
revenue could be
generated
Procurement and
installation of
electrical cabling
Donaldson
Dam
Revenue
generated
from rental &
entrances
171,000
Revenue
collection
report
180,00
0
275,025.
68 45,000 54,787 45, 000
113,
037 45, 000
46,
541.68 60,660 60,660
Improved controls
led to
improvement of
collections, as
previous
caretaker was
expelled.
Appointment
of the
developer
New Appointment
letter 1 0 1 0
Poor tender
proposals were
received that
were not meeting
the requirements,
therefore the
tender had to be
cancelled
48 2012/13 Annual report
Strategic Goal 3: Projects management support services
Strategic
objective/ KPA
Performance
Indicator Baseline
Portfolio of
Evidence
Annual
Target Actual
1st
Quarter 2nd
Quarter 3rd
Quarter 4rd
Quarter Explanation of
variance
Improvement Plan
Planned Actual Planned Actual Planned Actual Planned Actual
Buy Back
Center
%
Construction
of the
building
completed
New Project report 100% 0 100% 0 100% 0
Not completed
due to contractor
failing to perform
based on cost
escalations
Review of contract
with contractor and
addressing project
requirements to
keep cost down
No of jobs
created New
Job creation
report 5 20 5 20
More labour
intensive methods
were used and
community was
utilized as part of
EPWP campaign.
Finalization of
the
Institutional
arrangements
(%)
New
Institutional
arrangement
report
100% 0 1 0
Institutional model
not properly
defined thereby
impacting on
arrangements
with key
stakeholders ie
Randfontein and
users
Review of land
availability
conditions and
involve
Randfontein LM as
partner as opposed
to Landlord
Katlego
Cultural
Facility
Appointment
of the
operator
New Appointment
letter 1 0 1 0
Differences with
project partners
stalled process to
appoint operator
Model of project
institutional
arrangements to be
reviewed to
minimize difference
49 2012/13 Annual report
Strategic Goal 4: To ensure business excellence within the WRDA
Strategic
objective/
KPA
Performance
Indicator Baseline
Portfolio of
Evidence
Annual
Target Actual
1st
Quarter 2nd
Quarter 3rd
Quarter 4rd
Quarter Explanation of
variance
Improvement Plan
Planned Actual Planned Actual Planned Actual Planned Actual
Business
management
Organisation
structures
functionality
(%)
New Functionality
report 100 40% 100% 40%
Staff complement
largely support
staff, one
seconded from
WRDM viz a viz
approved
structure
Budget plan
submitted to
WRDM includes
staff establishment
costs
Performance
against
reviewed
SLAs (%)
New Performance
report 80% 0 80% 0
SLA was not
updated with
shareholders
Submission of 3
year business plan
and SDBIP in order
for SLA to be
drafted
No of MOU
/agreements
/SLAs
2
Singed
agreements/
MOUs/SLAs
4 0 2 0 2 0
Engagements
took place with
stakeholders,
Chamdor, GGDA,
Siyafunda but
agreements only
in draft
Finalize draft
agreements and
signoff in next
financial year
New
stakeholders
forum
established
2 Stakeholders
forum reports 2 0 1 0 1 0
Unable to
implement due to
changed strategic
priorities
Key sector
stakeholders to be
identified and
Sector groups
formed in coming
year
No of clean
audit action
plan
1 Audit action
plan 1 1 1 1
Business
targets
met(%)
New Business
target report 80% 0 80% 0
No business
targets defined on
APR
Project operational
targets will be set
for each project
Audit issues
addressed
(%)
90% Audit action
plan report 100% 80% 100% 80%
Due to capacity
challenge not all
actions could not
be undertaken
Audit plan actions
will be managed
monthly with
support of WRDM
internal audit
50 2012/13 Annual report
Strategic Goal 4: To ensure business excellence within the WRDA
Strategic
objective/
KPA
Performance
Indicator Baseline
Portfolio of
Evidence
Annual
Target Actual
1st
Quarter 2nd
Quarter 3rd
Quarter 4rd
Quarter Explanation of
variance
Improvement Plan
Planned Actual Planned Actual Planned Actual Planned Actual
Approved&
budgeted
positions
filled on a
new structure
(%)
New
Report on
positions
filled
100% 100% 100% 100%
No of skills
development
plans
New
skills
development
plan
1 0 1 0
No skills plan To be developed in
line with redefined
operations of
agency
Grievances/
disputes
lodged
versus
attended to
(%)
New Grievance/dis
putes report 100% -. 100% -
No grievances
and disputes
received.
Employment
equity targets
met(%)
New Employment
equity report 80% 0 80% 0
No equity targets
defined or
planned
Equity target will be
addressed in
Business plan
Performance
review
frequency(n)
4
HR Sub-
committee
performance
report
4 0 1 0 1 0 1 0 1 0
No performance
agreements in
place due
absence of
performance
management
policy
Development of
Performance Policy
to be included in
HR policy. Proper
job functions for
staff to enable
performance
agreements to be
in place
No. of Mid-
term report
submitted to
the board(n)
1 Minutes of
the board 1 1 1 1
Financial
Management
Capital
budget
variance (%)
New Financial
report 8% 0% 8% 0%
No capital budget
was approved
51 2012/13 Annual report
Strategic Goal 4: To ensure business excellence within the WRDA
Strategic
objective/
KPA
Performance
Indicator Baseline
Portfolio of
Evidence
Annual
Target Actual
1st
Quarter 2nd
Quarter 3rd
Quarter 4rd
Quarter Explanation of
variance
Improvement Plan
Planned Actual Planned Actual Planned Actual Planned Actual
Operational
budget
variance (%)
New Financial
report 8 8% 8%
Budget
allocations not
optimized to
areas required
and virements
were requested
but limited to 8%
due to WRDM
virement policy
Budget plan
submitted to
WRDM with all
required item
allocations
motivated
Products
required
versus
procured
within agreed
upon time
(%)
New
Annual
Procurement
report
80% 0 80% 0
No procurement
plan in place but
required
procurement took
place in cost
centres
Procurement/dema
nd forecast to be
developed for next
financial year
No. of Sec 87
reports
submitted to
shareholder(n
)
12 Section 87
reports 12 12 3 3 3 3 3 3 3 3
No. of
adjustment
budget
submitted to
the board(n)
1 Adjustment
budget 1 1 1 1
ICT
Management ICT plan 1 1 1 1 1
Infrastructure
management
No of Assets
registered 1 Asset register 1 1 1 1
Review of
Assets 2 Assets report 2 0 1 0 100% 0
Access to
munsoft not
available during
Q2 therefore
assets report
could not be
generated, for Q4
manual report
generated
Access to munsoft
to be established
52 2012/13 Annual report
Strategic Goal 4: To ensure business excellence within the WRDA
Strategic
objective/
KPA
Performance
Indicator Baseline
Portfolio of
Evidence
Annual
Target Actual
1st
Quarter 2nd
Quarter 3rd
Quarter 4rd
Quarter Explanation of
variance
Improvement Plan
Planned Actual Planned Actual Planned Actual Planned Actual
information
management
Website
updated 1 Update report 2 1 1 0 1 1
Change over from
BiQ to Munsoft
resulted in the
VPN being
blocked
Establish own
domain in order to
minimise VPN
dependence
53 2012/13 Annual report
Strategic goal 5 :To ensure Good Corporate Governance
Strategic
objective/
KPA
Performance
Indicator Baseline
Portfolio of
Evidence
Annual
Target Actual
1st
Quarter 2nd
Quarter 3rd
Quarter 4rd
Quarter Explanation of
variance
Improvement Plan
Planned Actual Planned Actual Planned Actual Planned Actual
Good
Corporate
Governance
Appointment
of new board
members
4 Appointment
letters.advert 9 9 9 9
Appointment
of the CEO 1
Appointment
Letter 1 1 1 1
No of board
meetings 4
Board
minutes 4 4 1 1 1 1 1 1 1 1
No of Board
packs 4 Board pack 4 4 1 1 1 1 1 1 1 1
No of sub-
committee
meetings
New
Signed
register &
report/minute
s
9 6 3 3 3 3 3 3
New Board only
appointed in
August.
Committees
established from
Q2.
No of sub
committee
packs
New
Sub
committee
packs
9 6 3 3 3 3 3 3
New Board only
appointed in
August.
Committees
established from
Q2.
No of
strategic
plans
1 strat plan
report 1 1 1 0 1
No of audit
committee
reports
New
Audit
committee
reports/minut
es
4 3 1 1 1 1 1 1
New Board only
appointed in
August.
Committees
established from
Q2.
No of Risk
management
workshop
New Workshop
report 1 1 1 0 1
The Risk
Workshop took
place on 14 June
2013. delay due
to finalizsation of
agency strategic
and annual plan
No of Project
&
Procurement
Committee
reports
New
Project &
procurement
committee
report/minute
s
4 3 1 1 1 1 1 1
New Board only
appointed in
August.
Committees
established from
Q2.
54 2012/13 Annual report
Strategic goal 5 :To ensure Good Corporate Governance
Strategic
objective/
KPA
Performance
Indicator Baseline
Portfolio of
Evidence
Annual
Target Actual
1st
Quarter 2nd
Quarter 3rd
Quarter 4rd
Quarter Explanation of
variance
Improvement Plan
Planned Actual Planned Actual Planned Actual Planned Actual
No of HR &
Remuneratio
n committee
reports
New
HR &
remuneration
committee
reports/minut
es
4 3 1 1 1 1 1 1
New Board only
appointed in
August.
Committees
established from
Q2.