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MERAFONG CITY
LOCAL MUNICIPALITY
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CONTENTS
CONTENTS ..................................................................................................................................................................... 2
COMPONENT A: MAYOR’S FOREWORD ........................................................................................................................ 7
COMPONENT B: EXECUTIVE SUMMARY ...................................................................................................................... 12
MUNICIPAL MANAGER’S OVERVIEW ........................................................................................................................... 12
MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW .............................................................. 14
SERVICE DELIVERY OVERVIEW ..................................................................................................................................... 23
FINANCIAL HEALTH OVERVIEW ................................................................................................................................... 25
ORGANISATIONAL DEVELOPMENT OVERVIEW ........................................................................................................... 29
AUDITOR GENERAL REPORT ........................................................................................................................................ 29
STATUTORY ANNUAL REPORT PROCESS ...................................................................................................................... 29
CHAPTER 2 – GOVERNANCE ........................................................................................................................................ 31
COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE ............................................................................ 32
POLITICAL GOVERNANCE ............................................................................................................................................. 32
2.2 ADMINISTRATIVE GOVERNANCE ................................................................................................................ 37
COMPONENT B: INTERGOVERNMENTAL RELATIONS .................................................................................................. 40
2.3 INTERGOVERNMENTAL RELATIONS ............................................................................................................ 40
COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION ............................................................................... 48
2.4 PUBLIC MEETINGS ...................................................................................................................................... 49
2.5 IDP PARTICIPATION AND ALIGNMENT........................................................................................................ 52
COMPONENT D: CORPORATE GOVERNANCE .............................................................................................................. 52
2.6 RISK MANAGEMENT ................................................................................................................................... 53
2.7 ANTI-CORRUPTION AND FRAUD ................................................................................................................. 54
2.8 SUPPLY CHAIN MANAGEMENT ................................................................................................................... 55
2.9 BY-LAWS ..................................................................................................................................................... 56
2.10 WEBSITES .................................................................................................................................................... 57
2.11 PUBLIC SATISFACTION ON MUNICIPAL SERVICES ....................................................................................... 58
CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) .................................................. 60
COMPONENT A: BASIC SERVICES ................................................................................................................................ 62
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3.1. WATER PROVISION ..................................................................................................................................... 65
3.2 WASTE WATER (SANITATION) PROVISION ................................................................................................. 73
ELECTRICITY ................................................................................................................................................................. 79
3.4 WASTE MANAGEMENT (THIS SECTION TO INCLUDE: REFUSE COLLECTIONS, WASTE DISPOSAL, STREET
CLEANING AND RECYCLING) ........................................................................................................................................ 86
3.5 HOUSING .................................................................................................................................................... 91
3.6 FREE BASIC SERVICES AND INDIGENT SUPPORT ......................................................................................... 98
COMPONENT B: ROAD TRANSPORT .......................................................................................................................... 101
3.7 ROADS....................................................................................................................................................... 101
3.8 TRANSPORT (INCLUDING VEHICLE LICENSING & PUBLIC BUS OPERATION) ............................................. 107
3.9 WASTE WATER (STORMWATER DRAINAGE) ............................................................................................ 110
COMPONENT C: PLANNING AND DEVELOPMENT ..................................................................................................... 116
3.10 PLANNING ................................................................................................................................................. 118
3.11 LOCAL ECONOMIC DEVELOPMENT (INCLUDING TOURISM AND MARKET PLACES) ................................. 123
COMPONENT D: COMMUNITY & SOCIAL SERVICES .................................................................................................. 129
3.12 LIBRARIES; ARCHIEVES; MUSEUMS; GALLERIES; COMMUNITY FACILITIES; OTHER (THEATRES, ZOOS, ETC)129
3.13 CEMETERIES AND CREMATORIUMS ......................................................................................................... 135
3.14 CHILD CARE; AGED CARE; SOCIAL PROGRAMMES ................................................................................... 138
COMPONENT E: ENVIRONMENTAL PROTECTION ..................................................................................................... 141
3.15 POLLUTION CONTROL ............................................................................................................................... 141
3.16 BIO-DIVERSITY; LANDSCAPE (INCL. OPEN SPACES); AND OTHER (EG. COASTAL PROTECTION) ............... 146
COMPONENT F: HEALTH ........................................................................................................................................... 149
3.17 CLINICS ...................................................................................................................................................... 149
3.18 AMBULANCE SERVICES ............................................................................................................................. 149
3.19 HEALTH INSPECTION; FOOD AND ABBATOIR LICENSING AND INSPECTION; ETC .................................... 149
COMPONENT G: SECURITY AND SAFETY ................................................................................................................... 150
3.20 POLICE ...................................................................................................................................................... 150
3.21 FIRE ........................................................................................................................................................... 153
3.22 OTHER (DISASTER MANAGEMENT, ANIMAL LICENCING AND CONTROL, CONTROL OF
PUBLIC NUISANCES AND OTHER) ...................................................................................................................... 153
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COMPONENT H: SPORT AND RECREATION ............................................................................................................... 154
3.23 SPORT AND RECREATION ......................................................................................................................... 154
COMPONENT I: CORPORATE POLICY OFFICES AND OTHER SERVICES ....................................................................... 158
3.24 EXECUTIVE AND COUNCIL ........................................................................................................................ 158
3.25 FINANCIAL SERVICES ................................................................................................................................. 161
3.26 HUMAN RESOURCE SERVICES .................................................................................................................. 166
3.27 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES ................................................... 169
3.28 PROPERTY; LEGAL; RISK MANAGEMENT AND PROCUREMENT SERVICES ................................................ 173
COMPONENT J: MISCELLANEOUS ............................................................................................................................. 179
COMPONENT K: ORGANISATIONAL PERFOMANCE SCORECARD .............................................................................. 179
CHAPTER 4 – ORGANISATIONAL DEVELOPMENT PERFORMANCE ............................................................................ 180
(PERFORMANCE REPORT PART II) ............................................................................................................................. 180
COMPONENT A: INTRODUCTION TO THE MUNICIPAL PERSONNEL .......................................................................... 181
4.1 EMPLOYEE TOTALS, TURNOVER AND VACANCIES .................................................................................... 181
COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE .................................................................................... 183
4.2 POLICIES .................................................................................................................................................... 184
4.3 INJURIES, SICKNESS AND SUSPENSIONS ................................................................................................... 185
4.4 PERFORMANCE REWARDS ........................................................................................................................ 187
COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE ............................................................................... 188
4.5 SKILLS DEVELOPMENT AND TRAINING ..................................................................................................... 189
COMPONENT D: MANAGING THE WORKFORCE EXPENDITURE ................................................................................ 192
4.6 EMPLOYEE EXPENDITURE ......................................................................................................................... 192
CHAPTER 5 – FINANCIAL PERFORMANCE .................................................................................................................. 195
COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE ................................................................................. 196
5.1 STATEMENTS OF FINANCIAL PERFORMANCE ........................................................................................... 198
5.2 GRANTS ..................................................................................................................................................... 200
5.3 ASSET MANAGEMENT .............................................................................................................................. 201
5.4 FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS ............................................................ 204
COMPONENT B: SPENDING AGAINST CAPITAL BUDGET ........................................................................................... 214
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5.5 CAPITAL EXPENDITURE ............................................................................................................................. 215
5.6 SOURCES OF FINANCE .............................................................................................................................. 216
5.7 CAPITAL SPENDING ON 5 LARGEST PROJECTS .......................................................................................... 217
5.8 BASIC SERVICE AND INFRASTRUCTURE BACKLOGS – OVERVIEW ............................................................. 220
COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS ........................................................................... 223
5.10 BORROWING AND INVESTMENTS ............................................................................................................ 225
5.11 PUBLIC PRIVATE PARTNERSHIPS ............................................................................................................... 229
COMPONENT D: OTHER FINANCIAL MATTERS .......................................................................................................... 229
5.12 SUPPLY CHAIN MANAGEMENT ................................................................................................................. 229
5.13 GRAP COMPLIANCE .................................................................................................................................. 230
CHAPTER 6 – AUDITOR GENERAL AUDIT FINDINGS .................................................................................................. 231
COMPONENT A: AUDITOR-GENERAL OPINION OF FINANCIAL STATEMENTS Year -1 ............................................... 231
6.1 AUDITOR GENERAL REPORTS Year 2016/2017 (Previous year) ........................................................................... 231
COMPONENT B: AUDITOR-GENERAL OPINION YEAR 2017/18 .................................................................................. 233
6.2 AUDITOR GENERAL REPORT YEAR 2017/18 ........................................................................................................ 233
GLOSSARY .................................................................................................................................................................. 236
APPENDICES............................................................................................................................................................... 238
APPENDIX A – COUNCILLORS; COMMITTEE ALLOCATION AND COUNCIL ATTENDANCE .......................................... 238
APPENDIX B – COMMITTEES AND COMMITTEE PURPOSES ...................................................................................... 242
APPENDIX C –THIRD TIER ADMINISTRATIVE STRUCTURE .......................................................................................... 243
APPENDIX D – FUNCTIONS OF MUNICIPALITY / ENTITY ............................................................................................ 244
APPENDIX E – WARD REPORTING.............................................................................................................................. 245
APPENDIX F – WARD INFORMATION ......................................................................................................................... 252
APPENDIX G – RECOMMENDATIONS OF THE MUNICIPAL AUDIT COMMITTEE YEAR 2017/2018 ............................ 253
APPENDIX H – LONG TERM CONTRACTS AND PUBLIC PRIVATE PARTNERSHIPS ....................................................... 258
APPENDIX I – MUNICIPAL ENTITY/ SERVICE PROVIDER PERFORMANCE SCHEDULE ................................................. 259
APPENDIX J – DISCLOSURES OF FINANCIAL INTERESTS ............................................................................................. 262
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APPENDIX K: REVENUE COLLECTION PERFORMANCE BY VOTE AND BY SOURCE .................................................... 265
APPENDIX K (i): REVENUE COLLECTION PERFORMANCE BY VOTE ............................................................................ 265
APPENDIX K (ii): REVENUE COLLECTION PERFORMANCE BY SOURCE ....................................................................... 266
APPENDIX L: CONDITIONAL GRANTS RECEIVED: EXCLUDING MIG ........................................................................... 266
APPENDIX M: CAPITAL EXPENDITURE – NEW & UPGRADE/RENEWAL PROGRAMMES ........................................... 272
APPENDIX M (i): CAPITAL EXPENDITURE - NEW ASSETS PROGRAMME .................................................................... 272
APPENDIX N – CAPITAL PROGRAMME BY PROJECT YEAR 2017/2018 ....................................................................... 275
APPENDIX O – CAPITAL PROGRAMME BY PROJECT BY WARD YEAR 2017/2018 ...................................................... 276
APPENDIX P – SERVICE CONNECTION BACKLOGS AT SCHOOLS AND CLINICS ........................................................... 278
APPENDIX Q – SERVICE BACKLOGS EXPERIENCED BY THE COMMUNITY WHERE ANOTHER SPHERE OF GOVERNMENT
IS RESPONSIBLE FOR SERVICE PROVISION ................................................................................................................. 279
APPENDIX R – DECLARATION OF LOANS AND GRANTS MADE BY THE MUNICIPALITY ............................................. 280
APPENDIX S – NATIONAL AND PROVINCIAL OUTCOMES FOR LOCAL GOVERNMENT ............................................... 281
VOLUME II: ANNUAL FINANCIAL STATEMENTS ......................................................................................................... 282
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CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY
COMPONENT A: MAYOR’S FOREWORD
MAYOR’S FOREWORD
Executive Mayor`s foreword
Vision
This 2017/18 Annual Report of Merafong City Municipality is a reflection of service delivery, development
achievements and challenges in our quest towards bringing about fundamental and radical socio-economic
transformation of our community in creating a better life, it remains our obligation to be an accountable and
transparent organization guided by principles of unity, integrity, service and the repositioning the West Rand in
creating a better region in the making. This annual report is postulated guided by various pieces of legislation,
such as Section 46 of the Local Government: Municipal System Act No. 32 of 2000 and Section 121 and 127(2)
of the Local Government: Municipal Finance Management Act No.56 of 2003.
This annual report is premised on the annual plans that are contained in the approved IDP and the tabled
budget for the 2017/18 which is a financial year marked as the centenary of the life of Nelson Mandela and
Albertina Sisulu whom are fearless champion of democracy and human rights, therefore as we draw strength
from this struggle martyr’s by ensuring that we uses these pillars of transformation to achieve the national
democratic society to reduce unemployment, eradicate poverty and narrowing of the inequality gap by
advancing the ideals of the National Democratic Revolution guided by the municipal vision towards a
PROSPEROUS, SUSTAINABLE & COMMUNITY-ORIENTED CITY.
Key Policy Developments
Based on strategic alignment to the regional five year plan towards the implementation of a Performance
Management Framework and system to enable seamless planning, reporting and evaluation, we have adopted
Fourteen Regional outcomes as service delivery approach towards the advancement of radical social and
economic transformation which is guided by One Region, One Plan, One Action and One System which is a
unifying approach to guide Regional Planning, Service Delivery, Monitoring and Performance Evaluation which
will culminated in the provision of quality service delivery to the community and the people.
In promoting of local economic development, in line with the National treasury Preferential Procurement
Policy, we have amended our Supply Chain Management policy by increasing from 25% to a minimum of 30% of
subcontract to all appointed projects.
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Key Service Delivery Improvements
This Regional Plan marked the point of destination which is defined against the achievements of Fourteen
Outcomes comprising of:
Regional Outcome 1 - Basic Service Delivery Improvements;
The municipality has developed sewer maintenance plan to address serious challenges of recurring sewer
blockages in the Khutsong South Ext 2, 4 and 6 and Khutsong Ext 3. In these areas out fall sewer line has
collapsed due to sinkhole formation.
The municipality has commenced plans to construct a reservoir that will supply water to Kokosi Extension 6 and
7, including the finalization of the repair of the Adatta Reservoir 900 Pipeline including Khutsong reservoirs
The Khutsong South Extensions resulted in an additional 650 households receiving electricity connections and
the following electrification Projects in Kokosi Extension 6, Kokosi Extension 99 and Khutsong South infill
development
The following roads are being constructed with associated storm water infrastructure in Wedela Phase 3
(0.6km), Khutsong Phase (0.9km), Khutsong Phase 2 (1.2km) and Kokosi Ext.6 (1.4km)
The National Disaster Management Centre allocated an amount of R118m for rehabilitation of sinkholes and re-
construct damaged infrastructure resulting from sinkholes, the following were executed being Bluebell Street,
Adatta and 590 Khutsong sinkholes and we have during the past financial year completed the following
projects: Wedela construction of roads and storm water phase 1, Kokosi Roads and storm water phase 1 & 2,
and Khutsong roads and storm water phase 1 and 2
Regional Outcome 2 - Accountable Municipal Administration
We are proud that we have functional and vibrant council and Mayoral committee and Section 80 (Portfolio)
meetings whom are convened according to the adopted schedules
Regional Outcome 3 - Skilled, Capacitated, Competent and Motivated Workforce
Our administration has been stabilized by the appointment of the senior management team in November and
December. The team is led by the Municipal Manager and six (6) Executive Directors of which five (5) positions
have been filled
Regional Outcome 4 - Ethical Administration and Good Governance
Ensuring that employees adhere to code of conduct and that they render services in a professional and ethical
manner in promotion of good governance
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Regional Outcome 5 - Safe Communities
We have an effective law enforcement & Security component that ensures effective law and by-law
enforcement including escorting and traffic control.
Regional Outcome 6 - Educated Communities
Through the youth office we have assisted 75 matric learners through an orphan’s assistance program
Regional Outcome 7 - Healthy Communities
We have established more Local Drug Action Committees around Merafong City, and HIV & AIDS programmes,
we have 114 volunteers whom are conducting daily door to door campaigns
Regional Outcome 8 - Sustainable Environment
The number of households with access to weekly waste removal in the formal areas has been increased from
31 462 to 32 705 households (An additional 1 243 households have been provided with access to the weekly
waste removal service).
Regional Outcome 9 - Build Spatially Integrated Communities
The municipality successfully implements the Merafong Spatial Planning and Land Use Management By-laws
through it’s’ system of delegations, ensuring effective and efficient decision making on planning applications,
also we are currently implementing a mixed housing typologies, This development will enhance the character of
Khutsong South area. It’s going to yield a total of 10 000 units consisting of 7200 freestanding and 2 400
walkups and 400 RDPs.
Regional Outcome 10 - Socially Cohesive Communities
The following programs were implemented like Reading Competition, Motivational Talks, Women’s Month
Celebration and Reading and poetry, Cancer Awareness program, Senior Citizens, 16 Days of Activism, Library
Holiday Program, and HIV Awareness, World Read Aloud Day, Motivational Talks,
Regional Outcome 11 - Reduced Unemployment
We are implementing the EPWP project and Tshepo 1 Million to ensure maximum employment, through the
implementation of labour intensive method, In this regard a total of 207 temporary jobs and have been created
thorough the implementation of infrastructure projects.
Regional Outcome 12 - Economic Development
We have allocated 30% of the value of the project to local SMMEs, and on the Nooitgedacht commonage farm,
we are supporting 23 small scale stock farmers and currently 197 cattle and 66 calves are kept on the farm
which is managed through grazing agreements
Regional Outcome 13 - Robust Financial Administration
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Merafong local municipality have continued to proudly attain an Unqualified Audit Report from the Auditor
General with a decrease on findings and matters of emphasis, also we have a continuous implementing credit
control/turnaround financial plan with aims to improve the finances of Council,
Regional Outcome 14 - Institutional Planning and Transformation
The adoption of a Regional Performance Management System as a Shared Service is the first step in
implementing a common unifying approach to guide our Planning, Service Delivery, Monitoring and
Performance Evaluation, In this regard; the Project Committee has made good progress to implement the
regional performance management system in all municipalities in the district, also we have restated our SDBIP
to align with 6 Key Objectives to the 14 Regional outcomes.
Public Participation
The Freedom Charter of 1955 remains a blueprint upon which our democratic future is established by ensuring
that public participation remains the hallmark of all government work; we have approved the municipal
budgets before the new financial year begins through proper planning and consultation with ward committees
and other stakeholder groups in the area, also in enhancing credit control, we have consulted with church, Post
Office, tenants of various Bee-Hives, Rand Water, Eskom, District Education Office, taxi operators are amongst
some of the stakeholders that were met with respect to the implementation of the turnaround plan
Future actions
Currently we are rolling out credit control and turn around financial plan towards reduction of water and
electricity loss due to water leaks, burst pipes and illegal connections, tempering and non-payment of services.
This is done to enhance the municipal revenue and further assist in creating a credible indigent register. also to
enhance municipal finances, we intend installing prepaid stand pipes in the informal settlements as a possible
solution for water loss.
As part of future plans we intend finalizing the implementation of a performance management system towards
monitoring, measuring and review of performance to ensure that there is delivery on set strategic objectives
and targets
In promotion of local economic development, we intend promulgating the supply chain management policy to
ring-fencing of 40% of total procurement spent on goods and services including ring-fencing of all projects
below R2 millions for locals
Agreements/Partnerships
We were also able to reach agreements with ESKOM and Rand Water in respect of the outstanding debt that
was owed to them
In collaboration with the Department of Economic Development and Coca Cola (CCBSA), we launched a Coca
Cola BIZNIZ in a box which is a youth entrepreneurship and development initiative that is targeting
disadvantaged youth and empower them with enterprise and skills development, Access to funding and
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business ownership
Conclusions
In pursuit of our cardinal task which are Unity, Integrity, Service and Renewal that spells out our programme of
action towards advancing our peoples interest by working together because we can do more, hence I would like
to take this opportunity to thank the members of Troika and the Mayoral Committee, including Council
committees members, Councillors including Merafong staff led by the Municipal Manager for your support and
tireless effort in ensuring the attainment of One Region, One Plan, One Action, One System in building a
national democratic society towards a better and prosperous life.
(Signed by :) __________________________
Mayor/Executive Mayor
T 1.0.1
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COMPONENT B: EXECUTIVE SUMMARY
MUNICIPAL MANAGER’S OVERVIEW
MUNICIPAL MANAGER’S OVERVIEW
A new era commenced in Merafong City during the 2017/2018 financial year with the appointment of the new
Municipal Manager and Senior Management Team in November and December 2017. In the months prior to
these appointments, the municipality was led by an acting senior management team which had the daunting
task to turn the financial position of the municipality around in accordance with the support program initiated
by the Department of Cooperative Government and Traditional Affairs in terms of section 154 of the
Constitution of RSA.
The Municipal Manager convened the management team in December 2017 for a Strategic Review to inform
strategies, mechanisms and initiatives to improve the financial status of the municipality and to ensure
improved service delivery through improved efficiency and effectiveness within the limited available
resources. This process further informed the Mid-year performance review and adjustment budget process as
well as the 2018/2019 IDP and budget process.
The municipality adopted a Financial Turnaround Plan and established mechanisms to ensure the vigorous
implementation of the plan through the establishment of dedicated committees. The Executive Mayor
convenes the Oversight Committee, consisting of representatives of all political parties in Council to oversee
the implementation of the plan.) The Municipal Manager leads a multi-departmental Implementation
Committee focusing on the implementation of the plan.
The Service Delivery and Budget Implementation Plan (SDBIP) was also reviewed during the year and fully
aligned to the Regional plan and the 14 Regional outcomes.
Despite the difficult financial position of the municipality during the year in review, the overall performance
achieved on the SDBIP was 84.42%, however the performance of 64.46% on the provision of basic services had
a serious impact on the overall performance of the municipality and also negatively impacted on the financial
position of the municipality. The municipality encountered 47% water losses and 33.86% electricity losses
during the year.
The unaccounted water losses is attributed to infrastructure failure due to aged infrastructure as well as the
impact of sinkhole formations experienced during the year in dolomitic areas. In this regard, the municipality
has made good progress to fix water leaks and a total of 221 leaks have been fixed during the year. The
impact of this programme on the entire losses was below expectation and the focus on the upgrading of bulk
infrastructure services with the support of sector departments is a priority in the medium term expenditure
framework.
A further contributing factor is the new housing development in Kokosi Ext 6 implemented by the Gauteng
Department of Human Settlements, where the pre-paid water meters have not been installed at the time of
occupation of units.
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Electricity losses are mainly attributed to illegal connections and the by-passing of pre-paid meters. Strategies
are being implemented through the Financial Turnaround Plan to address these priority issues in the
municipality.
The financial position of the municipality is compromised by the disturbing culture of non-payment for
municipal services in township areas. The total outstanding consumer debtors as at 30 June was R1.4 billion as
compared to R1.1 billion of the previous financial year. The average payment level for the year under review is
68.06%.
The municipality continues to implement the financial turnaround plan in order to improve revenue collection
and also to further manage the available cash resources efficiently. These interventions have resulted in a
reduction of general expenses from R115m in 2017 to R85m in 2018. Trade payables/creditors have further
reduced from R419m in 2017 to R348 in 2018. The net deficit for the year is R24m as compared to the
budgeted deficit of R178m.
All financial policies have also been reviewed during the budget process to ensure the policy environment is
aligned to the Financial Turnaround Plan.
Good governance and clean administration is a priority of the municipality, in this regard the municipality has
appointed governance structures such and the regional audit committee, the regional performance audit
committee, the regional risk management committee and the Municipal Public Accounts Committee. Our
commitment to good governance is again demonstrated by the unqualified audit opinion from the Auditor
General achieved for the year under review. We acknowledge33 that there are still matters of emphasis that
needs to be addressed in our operation clean audit plan (OPCA) but the main challenge that is receiving
priority is our financial health. The property rates dispute with the mines, the outstanding liquidation process
of the Blyvooruitsig mine, theft and vandalism of municipal infrastructure and the culture of non- payment by
some communities as well as the negative impact of the dolomite situation in our area will be the focus for
the new financial year.
To achieve our goals, plans and strategies the municipality needs to cooperation and support from all
stakeholders, eg. The community, Provincial and National government.
T 1.1.1
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MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW
INTRODUCTION TO BACKGROUND DATA
The 2011 census data was primarily used in municipal planning for the preceding reporting period. Since the release
of the 2016 Community Survey data by Statistics South Africa, the key characteristics of the municipal demographic
profile have changed considerably. This data input supported the 2017/2018 planning processes.
In comparing the 2011 Census data with the 2016 Community Survey data, the population of Merafong decreased
from 197 250 to 188 843. The decline in population is mainly attributed to the declining mining sector which,
resulted in net out-migration as depicted below.
Source: Quantec 2017
Other data sources such as Quantec were also analysed during the year in review to obtain more accurate data to
inform the Integrated Development Planning processes.
Despite the reduction of the population, the backlog of basic service pertaining to Housing, Access to water,
sanitation and electricity, as well as waste collection services, could not be fully addressed during the year in review.
Water and Sanitation
Access to potable water is a basic human need and a human right. Basic services are supplied to consumers across
the area of the Municipality by means of network connections, communal standpipes in informal settlements and by
means of water tanks and tankers in rural areas and areas affected by water shortages. In Kokosi extension 6, an
additional 1 400 households were connected for the first time in the year as part of the Kokosi Extension 6 low cost
housing project. 97% of the population has access to basic water services
Access to basic sanitation services is 89%. The municipality renders 100 % sanitation services to formal settlements.
Sanitation provision is still a challenge in areas that are not yet formalized as townships, as a result, Ventilated
Improved Pit latrine toilets are used
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Electricity
The thrust of the electricity provision strategy for the year under review was the extension of services to the newly
developed areas of Kokosi and Khutsong South Extensions. The provision of services to the informal settlements also
commenced in 2017/18 with a long term plan for the next five years. Access to electricity is currently 87%
Refuse
Access to weekly waste collection services improved from 75% to 77%.
Building plans approved
The Spatial Development Framework of the municipality has been aligned to the settlement patterns and the
demographic profile of the municipality to inform spatial integration and capital investment and new developments.
The below table indicates the decline in development applications and building plans processed in comparison to
the preceding reporting period.
Building plans approved 2016/2017 2017/2018
Number (#) 262 157
Value (R) R291,726, 993.00 R161,717,750.00
Housing
The Municipality has continued its Housing programme in accordance with the Municipal Housing Plan, incorporated
in the Integrated Development Plan. The Municipality is the developer in the Khutsong South Extensions Housing
Project. The first phase of 5 500 top structures and associated infrastructure is completed. In this regard the Housing
backlog is 22%
Economic Development
Although mining has shown a declining trend relative to its share in 2006, the mining sector remains the largest
contributor to the municipality’s GDP. Conversely, all the other sectors have been growing, with the greatest
increases reported in the manufacturing sector and finance and business division.
In 2016, the economy of the MCLM was valued at R30 761 million. The local municipality had a contribution of
22.2% to the district’s gross domestic product per region (GDP-R) and 1.4% to the Gauteng’s Province’s GDP-R.
The economy of Merafong city is still dominated by the mining sector, which contributed 54.9% to GDP in 2011 and
29.1 in 2016. Although the mining sector is still dominant in the economy of Merafong City, there has been a decline
in both production and its contribution to GDP. The Manufacturing contributed 14.1 in 2011 and grew to 20.8 in
2016, Finance and Business Services grew from 7.1 in 2011 to 13.8 in 2016, Transport improved from 3.8 to 5.9 are
also important contributors to the GDP of Merafong.
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Roads and Storm Water
The municipal roads infrastructure consists of tarred, paved and gravel roads. The municipality still experiences a
backlog of 190 km’s to be tarred. The increase in the backlog of gravel roads is attributed to the fact that the budget
for the new low cost housing developments does not include provision for roads and stormwater networks. The
annual municipal infrastructure grant (MIG) allocations are also totally insufficient to progressively eradicate the
backlog in the provision of proper roads and stormwater. This is especially significant in Merafong City where large
part of our developments are underlayed by dolomitic land.
The backlog in road infrastructure is a serious burden on the maintenance budget of the municipality.
The performance of the municipality on roads maintenance is currently affected by budgetary constraints faced by
the municipality. Most of the long term maintenance plans of the previous years had to be abandoned Those include
the resealing of roads and construction of new roads and stormwater infrastructure which were funded through the
internal revenue. The municipality currently depends on conditional grants which are not coping well with
addressing of the backlogs.
T1.2.1
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POPULATION DETAILS Population '000
Age 2015/2016 2016/2017 2017/2018
Male Female Total Male Female Total Male Female Total
Age: 0 - 4 8613 7814 16427 8613 7814 16427 8613 7814 16427
Age: 5 - 9 7226 7163 14389 7226 7163 14389 7226 7163 14389
Age: 10 -14 6435 6755 13190 6435 6755 13190 6435 6755 13190
Age: 15 - 19 6256 7148 13404 6256 7148 13404 6256 7148 13404
Age: 20 - 24 7352 7934 15286 7352 7934 15286 7352 7934 15286
Age: 25 - 29 9161 9304 18465 9161 9304 18465 9161 9304 18465
Age: 30 - 34 8280 7344 15624 8280 7344 15624 8280 7344 15624
Age: 35 - 39 10031 7388 17419 10031 7388 17419 10031 7388 17419
Age: 40 - 44 9618 6608 16226 9618 6608 16226 9618 6608 16226
Age: 45 - 49 8724 5438 14162 8724 5438 14162 8724 5438 14162
Age: 50 - 54 7339 4391 11730 7339 4391 11730 7339 4391 11730
Age: 55 - 59 4787 3747 8534 4787 3747 8534 4787 3747 8534
Age: 60 - 64 3200 2314 5514 3200 2314 5514 3200 2314 5514
Age: 65 - 69 1850 1528 3378 1850 1528 3378 1850 1528 3378
Age: 70 - 74 1296 1329 2625 1296 1329 2625 1296 1329 2625
Age: 75 - 79 586 871 1457 586 871 1457 586 871 1457
Age: 80 - 84 320 405 725 320 405 725 320 405 725
Age: 85+ 77 213 290 77 213 290 77 213 290
Total 101150 87693 188843 101150 87693 188843 101150 87693 188843
Source: Statistics SA Community Survey 2016 T 1.2.2
18
Source: Statssa Census 2011 & Community Survey 2016 T1.2.3
The above table indicates a significant increase in the number of poor households for the year in review. This trend
can be attributed to the 2017 statistical data obtained from Quantec based on the current poverty threshold of
R4 992 per annum.
Socio Economic Status
Year Housing Backlog as proportion of current demand
Unemployment Rate
Proportion of Households with no Income
Proportion of Population in Low-skilled Employment
HIV/AIDS Prevalence
Illiterate people older than 14 years
2015/2016 22% 27% 15% Not available 29% 4%
2016/2017 22% 27% 15% Not available 29% 4%
2017/2018 22% 20% 15% 27% 2% 4%
Source: Statssa Community Survey 2016 , Hiv/Aids & Own Source T 1.2.4
19
Source: Statssa Community Survey 2016, Hiv/Aids & Own Source T 1.2.5
Overview of Neighbourhoods within 'Merafong Municipality'
Settlement Type Households Population
Towns
Carletonville 9489 27518
Welverdiend 933 2706
Fochville 3443 9984
Losberg 0 0
Mining Towns 10398 30154
Sub-Total 24263 70362
Townships
Khutsong (incl. Khutsong South) 10812 31355
Kokosi 6717 19479
Greenspark 892 2586
Wedela 5721 16591
Blybank 101 293
Sub-Total 24243 70304
Rural settlements
20
Rural areas 1257 3646
Sub-Total 1257 3646
Informal settlements
Northern Conurbation 10725 31103
Southern Conurbation 2848 8259
Mining Belt 7009 20326
Sub-Total 20582 59688
Total 70345 204000
Source: Own Source T 1.2.6
Natural Resources
Major Natural Resource Relevance to Community
Agriculture
Vast tracks of unproductive agricultural zoned land owned by the mines and the Far West Rand Dolomitic Water Association (FWRDWA) present an opportunity for agricultural production and related industrial development, eg. Establishment of a Bioenergy Park and Agricultural Parks (Agri- Parks)
Mining
The declining trend in the performance of the mining sector is due to temporary and permanent shut downs of mining activities which have weakened Merafong’ s GDP contribution to WRDM economy. High outmigration rates are fostered by job losses in mining and low incomes relative to earnings in other major cities within the Gauteng Province. The future of gold mining in the area lies in automation and mechanisation which will change the mines’ workforce and impact on employment in the Municipality.
Infrastructure & Access to Services
The provision of essential services such as housing, electricity, access to clean water, health facilities, etc.is vital in determining the quality of life and satisfaction in residing in a locality (GCRO, 2015). Almost three quarters (74.2%) of households in Merafong were living in formal dwellings in 2016. This indicates an improvement from 2006, where almost 40% of the population were staying in informal settlements. This signifies formalisation of housing arrangements in the Municipality. The number of households accessing electricity marginally increased from 79.7% in 2006 to 82.5% in 2016. Although 83% of the households had access to piped water on their erven, there was a slight increase in the number of households relying on communal water (from 15% in 2006 to 16% in 2016). This was as a result of a 1% decrease of households relying on other sources of water supply (borehole, dam, well, etc.) during 2006-2016.
Source: Quantec 2017 T 1.2.7
21
COMMENT ON BACKGROUND DATA:
The decline in the population of Merafong City due to the net outmigration figures as a result of the declining mining
economy, poses a serious risk to sustainable growth and development.
Population Profile
According to Global Insight 2016, the Merafong population profile was male dominated with males accounting for
54, 3% of the total population and females at 45, 7%. This was a clear demonstration of the impact of mining in the
area. This trend has however changed considerably according to the 2017 Quantec data reports, where males
account for 48, 8% and females 51, 2% of the population. This clearly demonstrates the impact of the steadily
declining mining sector.
Education Profile
With regard to the education profile, there has been a remarkable improvement in the literacy levels since 2011 -
2016 in the following:
Population with tertiary education: 4.4% ⇨ 9.3%
Population with matric education: 16.6% ⇨ 28.8%
Population with secondary education: 35.9% ⇨ 57.8%
Population with no schooling education: 12.8% ⇨ 4%
(Source: Quantec 2017)
Household Income Profile
The majority household income is between R19 201 to R76 800 per annum, similar to Gauteng Province and WRDM.
The average household income of R6 750 per month is lower than the district’s household average income of R8 690
and almost 50% lower than Gauteng’s average household income. It is therefore clear that Merafong is a relative
poor community which negatively impacts on the ability of households to afford municipal services.
22
(Source: Quantec 2017)
Economic & Employment Profile
(Source: Quantec 2017)
Economic Performance
Although mining has shown a declining trend relative to its share in 2006, the mining sector remains the largest
contributor to the municipality’s GDP.
Conversely, all the other sectors have been steadily growing, with the greatest increases reported in the
manufacturing sector and finance and business division.
23
The figure below shows the gross domestic product (GDP) contribution per sector in the MCLM.
(Source: Quantec 2017) T 1.2.8
SERVICE DELIVERY OVERVIEW
SERVICE DELIVERY INTRODUCTION
Access to basic service delivery is negatively impacted upon by the growing informal settlements on privately owned
land throughout the municipal area. This can mainly be attributed to the impact of mining and the provision of living
– out allowances by the mining industry and the inability of the mining houses to provide accommodation to those
directly and indirectly employed by the mining industry.
The municipality is providing a package of free basic services to the 2 074 registered indigents. It is acknowledged
that many poor households are not registered and in this regard the municipality has embarked on a program to
ensure that indigent households register as such. The municipality will also implement an Indigent after care
program in the new financial year to ensure a credible indigent register.
For the year in review the municipality had 49 performance indicators relating to Basic Service Delivery in terms of
its Service Delivery and Budget Implementation Plan and has achieved an overall performance of 65,91%.
T 1.3.1
24
T 1.3.2
COMMENT ON ACCESS TO BASIC SERVICES:
The backlog of basic service pertaining to Housing, Access to water, sanitation and electricity, as well as waste
collection services, could not be fully addressed during the year in review. In this regard the Housing backlog is 22%
whilst 97% of the population has access to basic water services. Access to basic sanitation services is 89% whilst 87%
of the population has access to electricity services. Access to weekly waste collection services improved from 75% to
77%.
The Housing backlog is addressed through the implementation of housing projects as approved by the Gauteng
Department of Human Settlement. The Khutsong Extension 5 & 6 development consisting of the servicing of 1253
stands and construction of 500 low cost houses have commenced during the year, but will only be completed in the
new financial year (2018/2019). The Elijah Barayi Mega Project has also been launched by Gauteng Department of
Human Settlement of which the first phase will yield 1500 low cost housing units as well as 1500 Financial Linked
Institutional Subsidised Houses (Flisp).
The backlog in the provision of basic water and sanitation services is mainly in informal settlements on privately
owned land. Water is provided to these communities through water tanks and sanitation through VIP toilets.
The backlog in electricity services in proclaimed towns is due to new housing developments which is being
addressed in accordance with the electrification programme and grant funding from the Department of Energy. The
backlog in un-proclaimed areas falls within the jurisdiction of Eskom. In these regard the municipality has engaged
Eskom to provide electricity to prioritised areas, the project is currently being implemented.
25
The backlog in the provision of waste collection services is mainly due to the new housing developments and
informal settlements. The municipality could not address the backlog during the year under review due to financial
constraints experienced, these areas will be prioritised in the new financial year (2018/2019).
T 1.3.3
FINANCIAL HEALTH OVERVIEW
FINANCIAL OVERVIEW
Council closed off with a deficit of R80.424 Million comparing to a budgeted deficit of R262.374 Million.
Council’s cash flow had deteriorated in 2016/2017.
Council’s liquidity ratio had deteriorated in 2016-2017.
The liquidation of Blyvooruitzicht mine had a detrimental effect on council’s collection performance. Blyvooruitzicht
mine is owing council R409 463 039 as at the end of June 2017 which represents 35% of councils outstanding debt
owed by consumers. Councils outstanding debtors as at 30 June 2017 stands at R1 175 098 984.
The cash flow constrains had resulted in that council had to implement serious cost cutting measures and creditors
were prioritised for payment.
Council were not be able to cover its fixed operating expenditure.
Council adopted a turn-around strategy to turn the financial situation around. Water and Electricity losses remain a
serious challenge. The municipality, like most municipalities in the country has faced the usual challenges for the last
three years in maintaining positive cash flows and administering successful debtor collections.
Council’s average payment levels for the past twelve months were 73.90% comparing to 69.72% in 2015/2016.
The non-payment of services by consumers is a serious situation. Council needs an average payment level of 87.50%
to enable them to service its creditors.
T 1.4.1
26
Financial Overview: Year 2017/2018
R' 000
Details Original budget Adjustment Budget Actual
Income:
Grants 251 910 242 953 372 536
Taxes, Levies and tariffs 895 012 800 583 802 467
Other 140 685 157 919 160 530
Sub Total 1 287 607 1 201 455 1 335 533
Less: Expenditure 1 482 085 1 465 478 1 360 722
Net Total* -194 478 -264 023 -25 189
* Note: surplus/(deficit) T 1.4.2
Operating Ratios
Detail %
Employee Cost 23%
Repairs & Maintenance 3%
Finance Charges & Impairment 11%
T 1.4.3
COMMENT ON OPERATING RATIOS:
Liquidity
Current ratio
Current ratio measures the ability of the Municipality to pay its current liabilities out of the current assets. The
industry usually looks for a ratio of 2:1, however the acceptable current ratio is 1:1 for municipalities.
The current ratio is 0.5:1 which means that the Municipality will not be able to meet its short term obligation if the
trend continues.
Revenue Management
Current Debtors Collection Rate (Cash receipts % of Ratepayer & Other revenue)
A revenue enhancement strategy was developed and the roll out plan has commenced. A no tolerance approach in
terms of council’s credit control policy will be enforced on non-indigent defaulters.
Outstanding debtors to Revenue
This ratio gives an indication of how liquid customer’s debtors are. The benchmark is 8.3%. The benchmark is
exceeded. The municipality needs to look at ways of improving their credit control. The average for the Municipality
for the past two years was 20.28% and 18.5% respectively.
27
Creditors Management
• Creditors System Efficiency
The ratio gives an indication of average creditor’s payment period. The benchmark is 30 Days and is a contravention
of Section 65(2) (e) if creditors are not paid in 30 days. Councils average number of days to pay its creditors were
360 days.
Other Indicators
• Employee costs
The ratio indicates a percentage of salary costs to total expenditure and this ratio could illustrate the risk of salary
costs being unmanageable.
Employee costs totalled 22.6% of the total expenditure for the 2016/17 financial year. This ratio is maintained within
the limit of 30 %.
• Cost coverage
This ratio indicates the availability of cash plus short term investments to cover the monthly fixed operating
expenditure. The purpose of this measure is to understand the level of financial risk should the municipality be
under stress from a collection and cash in-flow perspective. The Municipality aims to achieve at least one month’s
cash coverage in the medium term, and then gradually move towards two months coverage.
Council does not have sufficient cash to cover current liabilities.
T 1.4.3
Total Capital Expenditure: Year 2015/2016 to Year 2017/2018
R'000
Detail 2015/2016 2016/2017 2017/2018
Original Budget 76 008 151 892 124 299
Adjustment Budget 216 213 187 996 217 897
Actual 148 688 113 958 181 089
T 1.4.4
28
T 1.4.5
COMMENT ON CAPITAL EXPENDITURE:
Council achieved 83% of the adjustment budget for 2017/2018.
Relocation of Khutsong Reservoir and Related Bulk Infrastructure
Upon proceeding with the excavations for the reservoir foundations subsequent to resolving a previous extended
delay with an ESKOM bulk feeder cable running across the reservoir footprint, a void was exposed on 10 November
2017 at a depth of approximately 2m below natural ground level on the western boundary of the reservoir footprint
area.
A geotechnical investigation followed upon which a void of 3,1m long, 2,8m wide and 4,5m deep was observed with
an erosion tunnel extending towards the west. It was recommended for a dolomite stability investigation to be
conducted in the area surrounding the sinkhole in order to determine the extent of subsurface erosion and
appropriate rehabilitation methods to improve subsurface (founding) conditions.
T 1.4.5.1
29
ORGANISATIONAL DEVELOPMENT OVERVIEW
ORGANISATIONAL DEVELOPMENT PERFORMANCE
The municipal organisation structure provides for 2005 permanent positions. By financial year end, 988 positions
were filled, with a staff turnover of 2.7%. New appointments are made taking into consideration the implementation
of the Employment Equity Act 55, 1998.
According to the demographic profile of the municipality, black employees constitute 92.4%, coloured 2.4%, Asian
0.5.%, and white 4.7%. Male and female employees constitute 64.1% and 35.9% respectively.
The Municipal Manager is the head of the organisation. She is supported by five (5)
Executive Directors (finance, community services, infrastructure services, and corporate services).The position of
Executive Director Local Economic Development and Environmental Management is vacant and in final stage of the
appointment.
T 1.5.1
AUDITOR GENERAL REPORT
AUDITOR GENERAL REPORT: YEAR 2017/2018 (CURRENT YEAR)
The Auditor General’s report 2017/2018 will form part of the final Annual Report which will be submitted to Council
by January 2019.
T 1.6.1
STATUTORY ANNUAL REPORT PROCESS
No Activity Timeframe
1
Consideration of next financial year’s Budget and IDP process plan. Except for the legislative content, the process plan should confirm in-year reporting formats to ensure that reporting and monitoring feeds seamlessly into the Annual Report process at the end of the Budget/IDP implementation period
July 2 Implementation and monitoring of approved Budget and IDP commences (In-year financial reporting).
3 Finalise the 4th quarter Report for previous financial year
4 Submit draft year 0 Annual Report to Internal Audit and Auditor-General
5 Municipal entities submit draft annual reports to MM
6 Audit/Performance committee considers draft Annual Report of municipality and entities (where relevant)
August
8 Mayor tables the unaudited Annual Report
9 Municipality submits draft Annual Report including consolidated annual financial statements and performance report to Auditor General
10 Annual Performance Report as submitted to Auditor General to be provided as input to the IDP Analysis Phase
30
11 Auditor General audits Annual Report including consolidated Annual Financial Statements and Performance data
September - October
12 Municipalities receive and start to address the Auditor General’s comments
November 13
Mayor tables Annual Report and audited Financial Statements to Council complete with the Auditor- General’s Report
14 Audited Annual Report is made public and representation is invited
15 Oversight Committee assesses Annual Report
16 Council adopts Oversight report
December 17 Oversight report is made public
18 Oversight report is submitted to relevant provincial councils
19 Commencement of draft Budget/ IDP finalisation for next financial year. Annual Report and Oversight Reports to be used as input
January
T 1.7.1
COMMENT ON THE ANNUAL REPORT PROCESS:
The Municipality is committed to adhere to the timelines and guidelines set out in Circular 63 of National Treasury.
This Annual Report covering the activities of the 2017/2018 financial year, the Municipality has submitted the draft
annual report to Council on the 31st August 2018 as guided by the circular. This draft does not contain the Report of
the Auditor General.
A reasonable alignment of the IDP and Budget for the financial year was achieved hence the Service Delivery Budget
Implementation Plan (SDBIP) was approved for 2017/2018.
In line with the requirements set out the municipality was able to submit performance reports for review to the
performance audit committee and the report of the Audit committee on the performance report, was tabled to
Council. The Mid-term performance report was also submitted to Council as prescribed.
The draft Unaudited Annual Report was submitted to the Audit Committee, Performance Audit Committee and the
Auditor General’s Office within the prescribed time frames.
T 1.7.1.1
31
CHAPTER 2 – GOVERNANCE
INTRODUCTION TO GOVERNANCE
The Merafong City Local Municipality was established in terms of Chapter 7 of the Constitution of the Republic
of South Africa, 1996, section 151. In terms of governance the municipality’s IDP process encourages public
participation whereby invitation to IDP public consultative meetings are advertised and publicised widely. The
community of Merafong is given an opportunity to give input in terms of their needs and these are considered
when the IDP as a strategic plan of the Municipality is developed.
The Internal Audit Unit of the Municipality develops an annual plan which is developed based on the risks
identified in that particular year. In terms of Oversight, the Internal Audit Section functionally to Audit
Committee, the Audit Committee holds its meetings on a quarterly basis. The report of the Audit Committee
Chairperson is presented to Council.
The Municipality also has a functional Municipal Public Accounts Committee (MPAC) in terms of Section 79 of
the Municipal Structures Act. It is a practice in Merafong to include the MPAC Chairperson to be part of Audit
Committee proceeding in order to achieve synergy in the work done by both Oversight Committees.
In addition the Municipality’s Risk Management Unit is responsible for Risk Management, Compliance
Management, Ethics Management and Combating of Fraud and Corruption. In order to improve good
governance and strengthen oversight the risk management function of the municipality has appointed an
external chairperson. The chairperson provides an independent view of risk management activities within the
organisation and whether risk management activities add value in the organisation. The municipality is using a
Shared service model of the district with regard to Section 79 committees. This means that all municipalities
within the district are using the same committees in order to standardise and have the same approach in
improving governance.
According to the municipality’s IGR Strategy, the municipality also participates in the IGR engagements within
the District, the Province and those that are coordinated by SALGA in order to align the activities of the
municipality with the governance initiatives within the Gauteng Province. Component B of this report indicates
the political and administrative leadership responsible of specific IGR engagement.
Component A to D give a detail in specific governance function.
T 2.0.1
32
COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE
INTRODUCTION TO POLITICAL AND ADMINISTRATIVE GOVERNANCE
The Political and Administrative governance is conducted in terms of the Local Government Municipal
Structures Act, No 117 of 1998 and other related regulations. The Executive Mayor of Merafong City Council Cllr
Maphefo Mogale-Letsie plays an oversight role over the administration of the municipality led by an Accounting
Officer Ms MN Mokoena.
The Mayoral Committee through their respective portfolio heads are playing a vital role to political and
administrative governance as well. The Heads of Departments and officials are responsible to implement the
political decisions of the council, and the ward councillors with their ward committees intensify the public
participation with the community
T 2.1.0
POLITICAL GOVERNANCE
INTRODUCTION TO POLITICAL GOVERNANCE
The Local Government Municipal Structures Act no. 117 of 1998 determined the Merafong City Local
Municipality to be declared a municipality with executive powers, and that would have an Executive Mayoral
System combined with a Ward Participation System. The political leadership of the municipality exercise their
executive and legislative powers and functions to govern the affairs of the municipality. The legislative function
of the council is vested within the full council with the speaker as its chairperson. The passing of by-laws and
policies on functions remains the responsibility of council except where delegations have been made.
The Executive Mayor, Cllr SM Mogale-Letsie has an executive strategy and political responsibility for Merafong
City and also represents the municipality at the ceremonial functions. Different portfolio committees submit
reports with recommendations to the Executive Mayor to be presented to the council.
The speaker of council, Cllr TE Mphithikezi is the chairperson of the council and presides over council meetings
to ensure that meetings are held as scheduled, maintains order during council meetings following the rules and
regulations of the meeting procedures.
The Chief Whip of the Council, Cllr WM Mosiane is the chairperson of whippery team responsible for building
and maintaining relationships between all parties in council to ensure the smooth running of the Portfolio
Committees and caucus study groups.
The municipality is complying in terms of the Municipal Structures Act Section 80 committees to assist the
executive committee. The section 80 committee consists of ten Mayoral Committee Members who head
different departments. The section 80 portfolio heads report to the Executive Mayor by submitting reports
from different council departments.
33
The Independent Audit Committee reports directly to the council, providing opinions and recommendations on
financial processes and performance. It is constituted to review the control, governance and risk management
within the municipality. It is established in terms of section 166 of the Municipal Finance Management Act. It
meets quarterly as scheduled and provides recommendations on financial and non-financial processes of the
municipality.
A section 79 Municipal Public Accounts and oversight committee (MPAC), is in place to strengthen the oversight
arrangements in the municipality and to ensure the efficient and effective use of municipal resources. Its
function includes the analysis of the Annual Report and submission of the oversight report on the annual report
to council with recommendations. Once the oversight report has been considered and approved by the council
it is published in accordance with the MFMA requirements and guidance.
In the office of the Speaker, the petition committee is established as a section 79 committee and reports
directly to the council. The ethics committee, as well, has been established to manage the conduct of the
municipal councillors in terms of the approved ethics conduct, especially in compliance with section 54 of
municipal systems Act - code of conduct for councillors.
The municipality also subscribed to the Batho-Pele principles in terms of public participation in the
communities especially in compliance with Chapter 4 of MFMA which detailed the development of culture of
community participation. The community consultation programme remains a paramount pillar between the
municipality and the community stakeholders. The ward committees’ structure plays a vital role to coordinate
the issues from the community at ward levels to the respective departments by monthly reports. The Executive
Mayor consults the community on a quarterly basis except in the case of other compliance programmes such as
budget and Integrated Development Plan (IDP) consultation programme.
The executive and legislative authority of a municipality is exercised by the council of the municipality, and the
council takes all the decisions of the municipality in terms of Municipal Systems Act.
The Executive Mayor of the municipality has powers and the legislative delegations in terms of section 59 of
MFMA Chapter 7. Besides the powers and functions accorded to and imposed on the Executive Mayor in terms
of legislation (e.g. the Municipal Systems Act, Municipal Finance Management Act, etc.), the executive function
of the council is delegated to the Executive Mayor as the appointed head of the executive function as far as the
Constitution and practicalities allow.
In executing and performing the executive functions of council and the municipality, the Executive Mayor is
complemented by ten Members of the Mayoral Committee each with a particular portfolio in terms of section
80 of the Municipal Structures Act.
Whippery
The Whippery Committee comprises of the Chief Whip of Council and of all opposition partied represented in
the Council. The Whippery is very instrumental in organizing and fostering cooperation between members of
the council from different political parties and primarily to promote inter-party relations, party discipline and
strive for consensus in issues of mutual interest.
34
SPECIFIC PROGRAMMES
• The committee plays an overall coordination of Whippery activities, e.g. managing number and order
of members who wish to speak in debates.
• Liaises and monitor performance of members of council to their area of deployment
• Promotes public participation, for example to interact with communities through community outreach
programmes and engaging with interest groups
Special Programmes
The political sector of the municipality is also championing the special programmes in the municipality for the
purpose of political governance to emphasize and intensify the implementation on these programmes. The
special programmes among others include the likes of Mayoral cup games, Ward Committees awards, Letsema
projects, Mandela Day, GEYODI programmes and women empowerment programs. The purpose of the special
programs are to complement the legislative in place such as Equity Act, youth empowerment, public
participation and compliance of minimum 2% of disability people in the municipality among other objectives.
T 2.1.1
Photos
POLITICAL
STRUCTUR
E
EXECUTIVE
MAYOR
CLLR SM
MOGALE
LETSIE
Functions
Presides at meetings of the executive committee and
performs the duties, including any ceremonial functions,
and exercises the powers delegated to the mayor by the
municipal council or the executive committee
SPEAKER
CLLR TE
MPHITHIK
EZI
Functions
Presides at meetings of the Council; Performs the duties
and exercises the powers delegated to the speaker in
terms of section 59 of the Local Government: Municipal
Systems Act 2000(Act 32 of 2000), Ensures that Council
meets at least quarterly; Must maintain order during
meetings; Must ensure compliance in the council and
council committees with the Code of Conduct set out in
schedule 1 to the Local Government: Municipal Systems
Act, 2000 ( Act 32 of 2000) and Must ensure that council
meetings are conducted in accordance with rules and
orders of the council
35
CHIEF
WHIP
CLLR WM
MOSIANE
Functions
(i) ensure the effective and efficient functioning of the
Whips Committee and the Whippery system;
(ii) assist with the smooth running of Council meetings
by:
determining, prior to Council meetings, items
on the agenda which political parties may wish
to discuss and advising the Speaker
accordingly;
ensuring that all political parties have
nominated councillors to represent their
parties and lead discussion on those areas
identified by the party, and forwarding such
names to the Speaker at least 12 hours before
the time set for the Council meeting to
commence;
allocating speaking times for each of the
political parties, in line with the principles of
democracy;
ensuring that Councillors adhere to the
speaking times allocated to their political
parties; and
assisting the Speaker to maintain order in
Council by requiring Councillors to adhere to
the Rules of Council regarding general conduct
in meetings;
(iii) ensure the allocation of Councillors to standing
committees in accordance with the representation of
parties in Council;
(iv) ensure that Councillors observe the Code of Conduct
for Councillors in any meetings, workshops or seminars
approved by the Speaker; and
(v) ensure that Councillors are familiar with the Code of
Conduct for Councillors and to facilitate training as and
when there is such a need.
36
MAYORAL COMMITTEE MEMBER
CLLR MG SELLO
CLLR E LEKOPA
CLLR M NGQELE
CLLR MB LEPHUTING
CLLR N. BEST
CLLR DV TABANE
CLLR MD DLHAMINI
CLLR MN MATSHE
CLLR M. MOYENI
CLLR M SKOSANA
FUNCTIONS
ROADS, STORM WATER AND PUBLIC WORKS
HEALTH AND SOCIAL DEVELOPMENT
CORPORATE AND SHARED SERVICES
INTEGRATED ENVIRONMENTAL MANAGEMENT
LOCAL ECONOMIC, TOURISM AND RURAL DEVELOPMENT
FINANCE
ELECTRICITY, GAS AND WATER
PUBLIC SAFETY, SECURITY AND TRANSPORT
HUMAN SETTLEMENT AND LAND DEVELOPMENT
SPORTS, RECREATION, ARTS, CULTURE, HERITAGE,
LIBRARIES AND INFORMATION SERVICES
T 2.1.1
COUNCILLORS
Merafong City Local has fifty six (56) councillors: - 28 Councillors were elected in terms of the system of
proportional representation and 28 councillors represent wards. The first Council Meeting elected the
Executive Mayor, Council Speaker and Chief Whip. The Executive Mayor has 10-member Mayoral Committee.
T 2.1.2
POLITICAL DECISION-TAKING
Merafong has an Executive Mayoral system with a Mayoral Committee consisting of 10 full time portfolio heads
as an advisory structure to the Executive Mayor. The Executive Mayor has delegated powers on matters dealt
with by portfolio committees. The Council is the decision making body of the municipality regarding non
delegated matters as prescribed by legislation.
The first Council meeting in the financial year took place on 27 July 2017, and the last one was on 30 May 2018.
In this period Council took 93 resolutions. With the system of execution notices that are used to check and
report on the execution of Council resolutions it was ensured that all resolutions were implemented.
T 2.1.3
37
2.2 ADMINISTRATIVE GOVERNANCE
INTRODUCTION TO ADMINISTRATIVE GOVERNANCE
The Municipal Manager is the head of the administration and the municipality’s Accounting Officer. The Head
of the Administration and is the Accounting Officer of the Municipality and is responsible for:
• The provision of Municipal Strategic Direction and the Operationalising of such strategies;
• The provision of the following infrastructural services for Merafong City Local Municipality: Water;
Sanitation, Geotechnical Services; Civil Engineering Services; Electrical Engineering Services; and
ensuring that Capital Project Financing is properly managed and accounted for;
• The rendering of Community Services which are: Public Safety; Community Development; and Solid
Waste and Environmental Management Services;
• The provision of Urban Planning and Development Services comprising: Spatial Planning and Land Use
Management; Property Management Services; and Housing Administration;
• The provision of Financial Planning and Accounting Services which are: Budgeting and Accounting
services; and Supply Chain Management Services; and
• The rendering of Municipal Support Services which are: Human Capital Management; Legal and
Administration Services; and Management Information Services.
In terms of section 55 of the Systems Act, the Accounting Officer is responsible and accountable for the
formation and development of such an establishment and is supported by the Office of the Chief Operations
Officer overseeing responsibilities of Integrated Development Planning, Performance Management, Risk
Management and Compliance Management.
The administrative governance strives to achieve a clean Auditor General’s report at the end of the financial
year. To achieve this goal, a standing item is placed on the regular management meetings between the
Municipal Manager and the Heads of the various Departments.
In terms of promulgated regulations and the MSA a municipal council must have at least the following senior
management positions on its complement:
* Town Planning Services
* Public Works and basic services to the community
* Community Services
* Managing of the finances of the Municipality and
* Rendering of Corporate Support Services
Currently five of the six section 57 positions, directly reporting to the accounting Officer are filled with the
exception of one and the process is unfolding.
T 2.2.1
38
TOP ADMINISTRATIVE STRUCTURE
TIER 1
FUNCTION
MUNICIPAL MANAGER
MS MN MOKOENA
As the Head of Administration, the Municipal Manager is
the Accounting Officer. The Municipal Manager advises
Council and its committees on administrative matters
such as policy issues, financial matters, organisational
requirements and personnel matters.
The Municipal Managers Office and ensures compliance
with the Municipal legislation. It also monitors that all
departments adhere to the IDP, the municipal strategy
and policies. Internal Audit is also located in this office.
CHIEF FINANCIAL OFFICER
MS M CHAUKE
The Chief Financial Officer ensures that the municipal
finances are well managed in accordance with the various
legislative requirements and consists of the following
Divisions:
1. Treasury and Budget Office
2. Creditors
3. Expenditure
4. Revenue
5. Supply Chain Management
CHIEF OPERATING OFFICER
MR CWA NIEUWOUDT
The Chief Operating Officer is the key Department within
the Municipal Managers Office. It is responsible for the
Integrated Development Plan (IDP), Monitoring and
Evaluation, Risk Management and Programme
Management Office.
EXECUTIVE DIRECTOR :INFRASTRUCTURE
DEVELOPMENT
MS MM MOLETSANE
The role of the department is to maintain effective and
efficient provision of basic services with regard to the
following:
1. the provision, distribution and maintenance of basic
electricity supply networks;
2. the provision, distribution and maintenance of basic
water and hygienic sanitation networks;
3. the construction and maintenance of municipal roads
and stormwater for safe accessible roads;
4. the implementation of Capital Projects within the
specified budget, time and quality through the
Infrastructure Planning and Progamme Section (PMU);
39
EXECUTIVE DIRECTOR: CORPORATE AND SHARED
SERVICES
MR H BREDENKAMP
Corporate Support Services is tasked with providing
support functions within the organisation and services the
organisation through the following divisions:
1. Contract Management
2. Legal and Secretariat
3. Human Capital Management
4. Corporate Communication and Marketing
5. Industrial Relations
6. Employment Equity
7. Information Communication Technology (ICT)
EXECUTIVE DIRECTOR: COMMUNITY SERVICES
MR S MANTJANE
The role of the department is to provide and maintain
effective and enhanced community services in the
following functional areas:
1. Public Safety – to create an enabling environment for
safer and secure communities
2. Integrated Environment and Waste Management – to
ensure the provision of effective environmental
management and integrated waste management services
3. Sport, Recreation, Arts, Culture & Heritage – To
promote social cohesion through the promotion of sport,
recreation, arts, culture and heritage
4. Library Information Services – To manage and provide
library and information services
5. Health & Social Development – To ensure the
promotion of social services
6. Public Safety and Security -
EXECUTIVE DIRECTOR: ECONOMIC DEVELOPMENT
AND PLANNING
VACANT
The role of the department is to create an investor
friendly town with constant economic growth, sustainable
developments and a variety of tenure options through
provision of integrated, sustainable and safe human
settlements.
1. Local Economic Development - Rural and Agricultural
Development, Enterprise Development and Support,
Business Retention, Expansion and Attraction
2. Spatial Planning - Land use control and management,
Development Facilitation/GIS, Densification & infill
programmes
3. Building Control
4. Human Settlement - Facilitate Sustainable Human
Settlements
T2.2.2
40
COMPONENT B: INTERGOVERNMENTAL RELATIONS
INTRODUCTION TO CO-OPERATIVE GOVERNANCE AND INTERGOVERNMENTAL RELATIONS
Co-operative Governance and intergovernmental relations are entrenched in the Constitution and
Intergovernmental Relations Framework Act establishing a framework for National, Provincial and Local
Government to facilitate intergovernmental relations.
As a Local Municipality, the municipality does not officially participate in National Intergovernmental Structures
such as MINMEC and MINTECH and related working groups.
The municipality fully participates in MEC- MMC political and technical Intergovernmental forums as well as
SALGA and the respective SALGA working groups
T 2.3.0
2.3 INTERGOVERNMENTAL RE LATIONS
NATIONAL INTERGOVERNMENTAL STRUCTURES
The Municipality annually participates in the National South African Local Government Association Members
Assembly where matters of mutual interest of Local Government is discussed to inform Policy and legislative
reforms as may be applicable.
In terms of the constitution of SALGA, the municipality as a member shall be represented in the National
Conference and National Members Assembly and be entitled to vote in accordance with the applicable formula.
National Assembly Members shall adopt SALGA’s programme of action, business plan and budget as approved
by the National Executive Committee and adopt positions on key policy and legislative matters impacting on
local government for implementation by the National Executive Committee.
Members must also review SALGA’s financial performance, consider reports from the working groups and
oversight bodies and deal with any other issues emanating from the provisions of this constitution.
T 2.3.1
PROVINCIAL INTERGOVERNMENTAL STRUCTURE
The municipality is actively participating in the following Provincial Intergovernmental Structures.
41
PROVINCIAL INTERGOVERMENTAL STRUCTURE
IGR Purpose Frequency of meetings
Department Person responsible Secondi
Premiers Coordinating Forum
All Mayors in Gauteng raise and discuss critical issues with the Premier directly
Quarterly Political Support Services
Acting Chief of Staff: Mr. I. Mahlatsi Tel: 018 788 9962 Email Address: [email protected]
Manager: Office of Mayor Mr. I. Mahlatsi Tel: 018 788 9962 Email Address: [email protected]
Premier’s Ntirhisano War Room PTT
Service Delivery War Room Monthly Political Support Services
Acting Chief of Staff: Mr. I. Mahlatsi Tel: 018 788 9962 Email Address: [email protected]
Manager: Office of Mayor Mr. I. Mahlatsi Tel: 018 788 9962 Email Address: [email protected]
MEC/MMC Infrastructure
To collate and discuss information surrounding departmental projects
Quarterly Political Support Services
PH: Roads, Stormwater, Public Works & PMU: CLR G.M. Sello Tel: 018 788 9962 Email Address: [email protected]
ED: Ms. M. Moletsane Tel: 018 788 9652 Email: [email protected] [email protected]
MEC/MC IGR FORUM Human Settlements
To discuss with the MEC issues relating to housing and development
Bi-monthly Political Support Services
PH: Human Settlement & Land Development : CLR .M. Moyeni Tel: 018 788 9051 Email Address: [email protected]
Acting ED: Econ Development & Planning: Mr. L. Jofile Tel: 018 788 9680 Email Address: [email protected]
MEC/MMC IGR FORUM (GDARD) Agriculture and rural development
To discuss issues relating Agriculture and Farming at Provincial Level
Bi-monthly Political Support Services
PH: Human Settlement & Land Development : CLR .M. Moyeni Tel: 018 788 9051 Email Address: [email protected]
Acting ED: Econ Development & Planning: Mr. L. Jofile Tel: 018 788 9680 Email Address: [email protected]
MEC/MMC:LED IGR DISTRICT
SMART CITY Quarterly Political Support Services
PH: Local Economic, Tourism & Rural Development : CLR .N. Best Tel: 018 788 9051 Email Address:
Acting ED: Econ Development & Planning: Mr. L. Jofile Tel: 018 788 9680 Email Address: [email protected]
42
Municipal Finance Working Group
To discuss issues of implementing finances for municipalities departmental projects
Bi-monthly Political Support Services
PH: Finance CLR D. Tabane Tel: 018 788 9607 Email Address: [email protected]
CFO: Ms. M. Chauke Tel: 018 788 9551 Email Address: [email protected]
MEC/MMC Social To collate and discuss information surrounding departmental projects
Quarterly Political Support Services
PH: Health & Social Development : CLR E. Lekopa Tel: 018 788 9626 Email Address: [email protected]
ED: Mr. Mantjane Tel: 018 788 9981 Email Address: [email protected]
MEC/MMC: HEALTH (District& Prov.)
To discuss clinics and general health issues
Quarterly Political Support Services
PH: Health & Social Development : CLR E. Lekopa Tel: 018 788 9626 Email Address: [email protected]
ED: Mr. Mantjane Tel: 018 788 9981 Email Address: [email protected]
MEC/MMC: Waste Forum
To discuss Waste Management
Quarterly Community Services
PH: Integrated Waste Management : CLR M. Lephuting Tel: 018 788 9636 Email Address: [email protected]
Waste Management Mr. Mahlangu Tel: 018 788 9982 Email Address: @merafong.gov.za
EPWP (District & Prov.)
Environment Management Quarterly Infrastructure Development
ED: Ms. M. Moletsane Tel: 018 788 9652 Email: [email protected] [email protected]
Manager: PMU Mr. D. Venter Tel: 018 788 9025 Email Address: [email protected]
GPL: Gauteng Speakers Forum
Speakers Forum Quarterly Political Support Services
Acting Chief of Staff: Mr. I. Mahlatsi Tel: 018 788 9962 Email Address: [email protected]
Admin Officer: Office of the Speaker Mr. M. MSUKWINI Tel: 018 788 9521 Email Address: @merafong.gov.za
Gauteng IGR Practitioners Forum (COGTAS & SALGA)
Province IGR Quarterly Chief Operations Officer
COO: Mr. CWA Nieuwoudt Tel: 018 788 9961 Email Address: [email protected]
IGR Coordinator Mr. P. Mofokeng Tel: 018 788 9505 Email Address: [email protected]
43
Premiers Coordinating Technical
Premiers & MM’S Forum Quarterly Municipal Manager
Municipal Manager Mr. MM. Mokoena Tel: 018 788 9962 Email Address: [email protected]
Chief Operations Officer Mr. CWA Nieuwoudt Tel: 018 788 9962 Email Address: [email protected]
Provincial Treasury CFO Forum/ Provincial Treasury Finance Indaba
To interact on a provincial level on matters related to legal compliance, financial reporting and other financial management issues and to propose financial management matters for discussion at MEC/MMC level
Quarterly Finance CFO: Ms. M. Chauke Tel: 018 788 9551 Email Address: [email protected]
CFO: Ms. M. Chauke Tel: 018 788 9551 Email Address: [email protected]
Provincial Treasury Risk Management and Internal Audit Indaba
To interact on a provincial level on matters related to Risk Management and Internal Audit
Quarterly Municipal Manager
Municipal Manager Mr. MM. Mokoena Tel: 018 788 9962 Email Address: [email protected]
Manager: Risk Management Ms. Segakweng-Diale Tel: 018 788 Email Address: [email protected]
44
SALGA Finance Working Group (Technical)
To establish a Local Government position on financial management matters (as representatives of LG)
Bi-monthly Finance CFO: Ms. M. Chauke Tel: 018 788 9551 Email Address: [email protected]
Manager: Budget & Treasury Mr. T Wienekus Tel: 018 788 9553 Email Address: [email protected]
Provincial Treasury compliance monitoring meetingError! Bookmark not defined.
To report on the municipality’s level of compliance with the MFMA and Regulations
Quarterly Finance CFO: Ms. M. Chauke Tel: 018 788 9551 Email Address: [email protected]
Manager: Budget & Treasury Mr. T Wienekus Tel: 018 788 9553 Email Address: [email protected]
SALGA IGR Working Group
IGR Quarterly COO COO: Mr. CWA Nieuwoudt Tel: 018 788 9961 Email Address: [email protected]
IGR Coordinator Mr. P. Mofokeng Tel: 018 788 9505 Email Address: [email protected]
Provincial Treasury Budget Monitoring MeetingsError! Bookmark not defined.
To evaluate the Annual budget submission of the municipality as well as to review the mid-year performance of municipality
Annually Finance CFO: Ms. M. Chauke Tel: 018 788 9551 Email Address: [email protected]
Manager: Budget & Treasury Mr. T Wienekus Tel: 018 788 9553 Email Address: [email protected]
45
Rand Water Board meeting
To compare the water results from the Municipalities in the Gauteng Region
Quarterly Infrastructure Development
ED: Ms. M. Moletsane Tel: 018 788 9652 Email: [email protected] [email protected]
Acting Manager: Water & Sanitation Ms. L. Moelane Tel: 018 788 9783 Email Address: [email protected]
Social Development Technical Committee
Preparation for MEC and MMC’s Meeting
Quarterly Political Support Services
PH: Health & Social Development : CLR E. LEKOPA Tel: 018 788 Email Address: @merafong.gov.za
ED: Mr. Mantjane Tel: 018 788 Email Address: [email protected]
Community Development Working group
Technical-portfolio Community Development
Quarterly Community Services
ED: Mr. Mantjane Tel: 018 788 Email Address: [email protected]
ED: Mr. Mantjane Tel: 018 788 Email Address: [email protected]
Health and Social Development Working group
Technical-portfolio Health and Social Development
Quarterly Community Services
ED: Mr. SE Mantjane Tel: 018 788 Email Address: [email protected]
ED: Mr SE. Mantjane Tel: 018 788 Email Address: [email protected]
Gauteng waste forum (GDARD)
To strengthen cooperative governance on waste management in the Province and to share information on waste management best practices
Monthly Community Service’s
ED: Mr. SE Mantjane Tel: 018 788 Email Address: [email protected]
Waste Management : Mr. Mahlangu Tel: 018 788 Email Address: @merafong.gov.za
Environment & culture sector meeting (EPWP) (GDARD)
EPWP reporting and management on environment
Quarterly Infrastructure Development
ED: Ms. MM. Moletsane Tel: 018 788 9652 Email: [email protected] [email protected]
Manager: PMU Mr. D. Venter Tel: 018 788 9025 Email Address: [email protected]
46
Infrastructures sector meeting (EPWP) (department of Public works)
EPWP reporting and management on infrastructure
Quarterly Infrastructure Development
ED: Ms. MM. Moletsane Tel: 018 788 9652 Email: [email protected] [email protected]
Manager: PMU Mr. D. Venter Tel: 018 788 9025 Email Address: [email protected]
Intergovernmental Relations Forum: Infrastructure
To interact on matters related to infrastructures
Quarterly Infrastructure Development
ED: Ms. MM. Moletsane Tel: 018 788 9652 Email: [email protected] [email protected]
ED: Ms. MM. Moletsane Tel: 018 788 9652 Email: [email protected] [email protected]
GPGED,MEC-MMC IGR MEETING
Proposed alignment of economic development initiatives, strategies and programmes discussions with MMC and HOD’s (ED’s) Political
Quarterly Economic Development & Planning
PH: Local Economic, Tourism & Rural Development : CLR .N. Best Tel: 018 788 9051 Email Address: [email protected]
Acting ED: Econ Development & Planning: Mr. L. Jofile Tel: 018 788 9680 Email Address: [email protected]
GPGDED,MEC-TEC IGR, MEETING
Proposed alignment of economic development initiatives, strategies and programmes discussions with HOD’s (ED’s) Directors more technical
Quarterly Economic Development & Planning
PH: Local Economic, Tourism & Rural Development : CLR .N. Best Tel: 018 788 9051 Email Address: [email protected]
Econ Development & Planning: Tel: 018 788 9680 Email Address: [email protected]
GPG
INFRASTRUCTU
RE
DEVELOPMENT,
MEC-MMC IGR
Alignment of provincial wide
and cross border
infrastructure programmes.
Political discussion between
MEC-MMC’s (and HOD’s)
Quarterly Infrastructure
Development
PH: Roads, Stormwater, Public
Works & PMU: CLR G.M. Sello
Tel: 018 788 9962
Email Address:
ED: Ms. MM. Moletsane
Tel: 018 788 9652
Email: [email protected]
47
GDARD MEC-MMC IGR FORUM
Environmental Conservation, agricultural development programme alignment Political Discussion between MEC-MMC’s (and HOD’s)
Quarterly Economic Development & Planning
PH: Human Settlement & Land Development : CLR .M. Moyeni Tel: 018 788 9051 Email Address: [email protected]
Manager: Spatial Planning & Environmental Management: Ms. J. Smit Tel: 018 788 9688 Email Address: [email protected] Agricultural Officer: Mr. R Nkatshela Tel: 018 788 9003 Email Address: [email protected]
GDARD MEC-TEC IGR FORUM
Environmental Conservation, agricultural development programme alignment technical discussion between MEC-HOD’s (and Dir.)
Quarterly Economic Development & Planning
PH: Human Settlement & Land Development : CLR .M. Moyeni Tel: 018 788 9051 Email Address: [email protected]
Manager: Spatial Planning & Environmental Management: Ms. J. Smit Tel: 018 788 9688 Email Address: [email protected]
GPG HOUSING MEC-MMC IGR MEETING
Alignment of housing sector, eradication of backlogs and improved service delivery political discussion between MEC-MMC’s (and HOD’s)
Quarterly Economic Development & Planning
PH: Human Settlement & Land Development : CLR .M. Moyeni Tel: 018 788 9051 Email Address: [email protected]
Manager: Housing & Administration Mr. L Jofile Tel: 018 788 9686 Email Address: [email protected]
GPG HOUSING MEC-TEC IGR MEETING
Alignment of housing sector, eradication of backlogs and improved service delivery technical discussion between MEC-MMC’s (and HOD’s)
Quarterly Economic Development & Planning
PH: Human Settlement & Land Development : CLR .M. Moyeni Tel: 018 788 9051 Email Address: [email protected]
Manager: Housing & Administration Mr. L Jofile Tel: 018 788 9686 Email Address: [email protected]
T2.3.2
48
RELATIONSHIPS WITH MUNICIPAL ENTITITIES
The municipality does not have any municipal entities and all functions are managed as part of the core mandate
of the municipality in accordance with its Powers and Functions.
T 2.3.3
DISTRICT INTERGOVERNMENTAL STRUCTURES
A Municipal Intergovernmental Forum has been established and is functioning in the West Rand District
Municipality in terms of the provisions of section 24 of the Act. The District Forum promotes and facilitates
Intergovernmental Co-ordination between the West Rand District Municipality and its three neighboring
municipalities. The municipality has been an active participant in all the scheduled meetings for the year in
review, represented by the Executive Mayor and delegated councilors and officials
The Speaker also has been actively involved in the District Forum, the Gauteng Speakers Forum and the SALGA
Provincial Governance and IGR forum.
Senior officials of the municipality are also participating in the district structures such as the monthly section 80
committees of the respective portfolios.
T 2.3.4
COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION
OVERVIEW OF PUBLIC ACCOUNTABILITY AND PARTICIPATION
The goal of the Merafong City Local Municipality on Good Governance and Public Participation is to realize a
viable and caring institution that will promote and support a consultative and participatory local government.
This is in line with the current municipal vision: “A prosperous, sustainable and community orientated city.” The
following section outlines how this has been carried out in Merafong City Local Municipality.
During the year under review structured consultation sessions were held with all the communities through the
ward based structures during the municipal planning and the budget process.
The inputs of the community were further followed up during outreach programme by the Executive Mayor to
address community specific challenges
T 2.4.0
49
2.4 PUBLIC MEETINGS
COMMUNICATION, PARTICIPATION AND FORUMS The IDP Public Consultation process is done through the Ward Committee Structures, led by the Ward Councillors in each ward (28 wards). The Public participation process is conducted in terms of Section 28 & 29 of the Municipal Systems Act (Act 32 of 2000). The process is done during the month of October and November. The community is afforded an opportunity to participate and give concerns/challenges were necessary in terms of municipal service delivery. The IDP/Budget consultation process (incl. IDP Representative Forum) started from the 02
nd May 2018 until 25
th
May 2018 in the 2017/2018 financial year. The IDP/Budget Consultation process takes place twice a year. The community is informed of all budget related matters (e.g. adjustment budget, drafting of the next financial year’s budget, planned expenditure and performance on all municipal projects).
T 2.4.1
WARD COMMITTEES
The ward committee are mostly charged with the following responsibility;
1. Interacting daily with community members in order to identify service delivery challenge they face daily so
that they record and report them to the Ward Councillor.
2. Act in an advisory capacity to the ward councillor.
3. Act as a resource through which council and its Department, Provincial and National Government must
consult with and obtain community opinion on any matter.
5. Inform, educate and clarify community members on Local Government Policies
(Indigent Policy, Credit Control Policy), By-Laws and resolutions which are adopted by Council.
5. The major task that Ward Committees must champion is the coordination and servicing of stakeholders on
ward level.
6. Mobilization for Community Meetings e.g. Ward Community Meeting, Mayoral Imbizo’s, Provincial Imbizo’s.
T 2.4.2
50
Public Meetings
Nature and purpose of the Meting
Date of Event
Number of Participating Municipal Council
Number of Participating Municipal Administrator
Number of Community members attended
Issues raised by community
Issues addressed Yes/No
Date and manner of feedback given to community
IDP/ BUDGET CONSULTATION 2017-2018
IDP/BUDGET CONSULTATION STAKEHOLDERS
08/05/18 2 3 22 Water, Housing, Sports Facilities, Unemployment, and Crime, Sinkholes, Illegal Dumping, Street lights, Blocked drains &Roads.
Yes Feedback is provided quarterly through community meetings
IDP/BUDGET CONSULTATION GREENSPARK WARD 14&21
09/05/18 12 11 52 Housing, Sports Facilities, Unemployment, and Crime, Illegal Dumping, Street lights, Blocked drains& Roads.
Yes Feedback is provided quarterly through community meetings
IDP/BUDGET CONSULTATION FOCHVILLE & KOKOSI WARD: 22,,24,25&26
09/05/18 6 14 120 Housing, Sports Facilities, Unemployment, and Crime, Illegal Dumping, Street lights, Blocked drains& Roads.
Yes Feedback is provided quarterly through community meetings
IDP/BUDGET CONSULTATION WEDELA,ELANDSRIDGE &BLYVOOR WARD:5,11,20,23&27
10/05/18 16 06 65
Sports Facilities, Unemployment, and Crime, Illegal Dumping, Street lights, Blocked drains& Roads.
Yes Feedback is provided quarterly through community meetings
IDP/BUDGET CONSULTATION KHUTSONG COMMUNITY HALL WARD:3,4,6,7,8,9&10
23/05/18 2 1 162 Housing, Sports Facilities, Unemployment, and Crime, Sinkholes, Illegal Dumping, Street lights, Blocked drains & Roads.
Yes Feedback is provided quarterly through community meetings
IDP/BUDGET CONSULTATION KHUTSONG COMMUNITY HALL WARD:1,2&12
24/05/18 2 3 116 Housing, Sports Facilities, Unemployment, and Crime, Sinkholes, Illegal Dumping, Street
Yes Feedback is provided quarterly through community meetings
51
lights, Blocked drains & Roads.
IDP REPRESENTATIVE FORUM
IDP REP FORUM STAKEHOLDERS ENGAGEMENT
25/05/18 19 13 61 Land for farming, land for building own houses, Rehabilitation of recreational facilities, Signage for arts and culture. Unemployment not addressed in the IDP. Maintenance of roads.
Yes Feedback is provided quarterly through community meetings
T2.4.3
COMMENT ON THE EFFECTIVENESS OF THE PUBLIC MEETINGS HELD:
1. The people’s contract with the local government is enhanced, whereby the Municipality in the drafting, and
the adjustment of the budget and IDP processes, is able to allocate the budget according to the priority IDP
needs of the community.
2. Public meeting are effective methods which government should always utilize to communicate to community
about the improvement, plans and vision of expected service delivery quality standard, community will receive
from the Municipality.
3. Public meeting allow the Municipality to be transparent and accountable directly to the citizen about the
affairs of the Local Government as required by the Constitution of South Africa.
T 2.4.3.1
52
2.5 IDP PARTICIPATION AND ALIGNMENT
IDP Participation and Alignment Criteria* Yes/No
Does the municipality have impact, outcome, input, output indicators? Yes
Does the IDP have priorities, objectives, KPIs, development strategies? Yes
Does the IDP have multi-year targets? Yes
Are the above aligned and can they calculate into a score? Yes
Does the budget align directly to the KPIs in the strategic plan? Yes
Do the IDP KPIs align to the Section 57 Managers Yes
Do the IDP KPIs lead to functional area KPIs as per the SDBIP? Yes
Do the IDP KPIs align with the provincial KPIs on the 12 Outcomes Yes
Were the indicators communicated to the public? Yes
Were the four quarter aligned reports submitted within stipulated time frames? Yes
* Section 26 Municipal Systems Act 2000 T 2.5.1
COMPONENT D: CORPORATE GOVERNANCE
OVERVIEW OF CORPORATE GOVERNANCE
The municipality is committed to Good Governance and Ethical administration and has developed processes and
procedures in adherence to corporate governance and ethical conduct in its operations which is rooted in its
core values of Integrity, Accountability, Commitment, Teamwork, Proactivity and Service Excellence. The
municipality has developed policies and established key supporting structures to oversee and monitor
governance. These structures include an Independent Audit Committee, Performance Audit Committee and a
Risk Management Committee which is shared in the region in accordance with the Shared Service approach. The
municipality has a functional Municipal Public Accounts Committee (MPAC) that ensures oversight and directly
reports to Council.
The development of an ethical culture in the Administration is a priority and in this regard the Municipality has
participated in the Gauteng Municipal Integrity Project. The results of the surveys conducted in the Municipality
will impact on strategies to advance ethical conduct.
During the year in review, BID Committees have been reconstituted after the appointment of the Municipal
Manager and Senior Management Team. Management practices have also been implemented to ensure
compliance to reporting requirements pertaining to financial reporting and reporting of the Risk Committee and
Audit Committee.
T 2.6.0
53
2.6 RISK MANAGEMENT
RISK MANAGEMENT
In terms of Section 62.(1)(c) of the MFMA, the Municipal Manager of the Municipality is responsible for
managing the financial administration of the municipality, and must for this purpose take all practicable steps to
ensure that the municipality has and maintains effective, efficient and transparent systems of financial and risk
management and internal control.”
In this regard, the municipality has a functional Risk Management Unit in place for the implementation of an
Annual Enterprise Risk Management Plan which entails the following key deliverables:
Strategic Risk Identification and Assessments
Operational Risk Identification and Assessments
Risk Reporting
Risk Monitoring
Compliance Monitoring
Anti-Corruption advocacy
Ethics Management and
Co-ordination of training and awareness campaigns
Risk in all business activities is inherent. Every Official and Councillor of the Municipality must continuously
manage risks within their respective area of responsibility.
The Merafong City Local Municipality (MCLM) recognizes that the aim of Risk Management is not to eliminate
the risk entirely, but to ensure that risks are managed and the control environment strengthened.
The role of Risk Management in MCLM is ultimately to ensure that the Municipality achieves its objectives in
accordance with the IDP, and to pro-actively identify those risks that may impact on the achievement thereof,
and manage them proactively according to the degree of probability or likelihood and the possible consequence
of such risks.
A risk identification and assessment exercise is undertaken annually in line with the IDP and SDBIP and the
following table lists the five (5) top risks of the municipality for the year under review.
54
Despite having 13 risks in the Strategic Risk Register the main risk area remains the financial viability of the
Municipality which causes other risks. Action Plans were developed to mitigate all the risks identified and
responsible risk owners were identified. Action plans are monitored on a quarterly basis.
T 2.6.1
2.7 ANTI-CORRUPTION AND FRAUD
FRAUD AND ANTI-CORRUPTION STRATEGY
MCLM has an anti-corruption strategy to give effect to the expressed commitment of the Municipality to fight
corruption in the institution. This strategy serves as a guide to deal with cases of fraud, corruption theft and
financial misconduct. The following are the Key Strategic Pillars of the Anti-Corruption Strategy:
- Detection
- Prevention
- Investigation
- Resolution and
- Reporting
The Anti-corruption strategy is strengthened by the Fraud Prevention Policy, Fraud Prevention Plan and Fraud
Response Plan, to give effect to the implementation of the holistic Anti-Corruption Strategy.
55
To give effect to the provisions of section 83 of the Municipal Systems Act, 32 of 2000, MCLM has Procurement
policy which was reviewed during the year in review to ensure legislative compliance and to minimize the
possibility of fraud and corruption with the procurement of goods and services. The BID Committees have been
reviewed during the year and are fully functional. Systems have also been put in place, not only to ensure
compliance, but also to ensure value for money in the provision of municipal services, with due regard to the
promotion and empowerment of small and emerging enterprises.
The municipality also maintained an anonymous ethics/fraud hotline (0800 004 004) for the year in review to
ensure anonymous reporting of any acts of fraud and corruption by the municipality or the public. All reported
cases are investigated and for the year in review 16 reported cases, mainly related to service delivery issues and
the misuse of the municipal fleet have been finalized.
In order to proactively address ethical behavior and conduct, the municipality participated in the Gauteng
Municipal Integrity Project in partnership with the Ethics Institute. The project will find expression in an Ethics
Strategy and Implementation plan to be implemented in the new financial year.
In terms of the procurement process the prescribed committees were established, namely the Bid Evaluation
Committee and the Bid Adjudication Committee.
T 2.7.1
2.8 SUPPLY CHAIN MANAGEMENT
OVERVIEW SUPPLY CHAIN MANAGEMENT.
* Municipal Finance Management Act, Act no. 56 of 2003
* Municipal Supply Chain Management Regulations 2005 (amended January 2017)
* Preferential Procurement Policy Framework Act, Act no.5 of 2000
Supply Chain Management is governed by Chapter 11 of the Municipal Finance Management Act, Act 56 of 2003
– Goods and Services (ss 110 – 120) whereby part 1 – Supply Chain Management (ss 110 – 119) prescribe that
Merafong Municipality must have a Supply Chain Management Policy to comply with the prescribed framework.
The Supply Chain Management Policy must ensure that there is fairness, equitable, transparent, competitiveness
and cost-effectiveness when procuring goods and services for service delivery of the Municipality. It also gives
guidance on the administrative procedures and mechanism of how to handle the quotations and tenders from
the advertisement to the award of the bids and is obtained at the best value for money.
The Supply Chain Management unit is a strategic department that ensures support and implementation of the
IDP and SDBIP.
56
The Municipality is in the process of appointing the long term contracts for the supply and delivery of materials
for general maintenance and other services.
The structure of SCM consists of ten (10) positions of which five are vacant and five are filled with the following
personnel:
NAME OF PERSONNEL POSITION PAYROLL NO. COMPETENCY SKILL.
Julia Magongwa Level 1 026112 Completed the Treasury
skill
Jabu Mkhwanazi Level 8 025146 Partially completed
Simphiwe Ndolela Level 8 026147 Partially completed
Kim Bothma Level 8 025867 Completed the Treasury
skill
Mariska Wakefield Level 9 026149 To attend the training
T 2.8.1
2.9 BY-LAWS
By-laws Introduced during Year 2016/2017
Newly Developed Revised Public Participation Conducted
Prior to Adoption of
By-Laws (Yes/No)
Dates of Public
Participation
By-Laws Gazetted* (Yes/No)
Date of Publication
Tariffs for the supply of water, electricity, sewage, cleansing and sundry services
Yes With the budget road show
Yes 25-Jun-17
Notice of general assessment rates
Yes With the budget road show
Yes 25-Jun-17
*Note: See MSA section 13. T 2.9.1
COMMENT ON BY-LAWS:
By-laws and Tariffs are approved by Council after a process of public consultation, and the consultation as part of
the stakeholder/community consultation on the IDP and Budget including all budget related policies. The
stakeholder/community had an opportunity to make inputs into the final product .
T 2.9.1.1
57
2.10 WEBSITES
Municipal Website: Content and Currency of Material
Documents published on the Municipality's / Entity's Website Yes / No
Current annual and adjustments budgets and all budget-related documents Yes
All current budget-related policies Yes
The previous annual report (Year -1) Yes
The annual report (Year 0) published/to be published Yes
All current performance agreements required in terms of section 57(1)(b) of the Municipal Systems Act (Year 0) and resulting scorecards
No
All service delivery agreements (Year 0) No
All long-term borrowing contracts (Year 0) No
All supply chain management contracts above a prescribed value (give value) for Year 0
Yes
An information statement containing a list of assets over a prescribed value that have been disposed of in terms of section 14 (2) or (4) during Year 1
No
Contracts agreed in Year 0 to which subsection (1) of section 33 apply, subject to subsection (3) of that section
No
Public-private partnership agreements referred to in section 120 made in Year 0 No
All quarterly reports tabled in the council in terms of section 52 (d) during Year 0 No
T 2.10.1
COMMENT MUNICIPAL WEBSITE CONTENT AND ACCESS:
The municipal website was hosted by COGTA between the months of July and October during the year in review.
COGTA could not continue hosting the website from the month of November due to non- payment to their
service provider. The website went off till the end of March 2018 and documents could not be loaded as COGTA
promised to bring it back. During the month of April the Municipality’s Section: ICT created a new website that
started to be in operation mid April 2018.
The municipal website is available to the community through the libraries in the Merafong City area of
jurisdiction. The libraries provide free access to internet for an half an hour per user per day. Currently there are
65 computers with internet access and free WI-Fi available at 13 libraries.
T 2.10.1.1
58
2.11 PUBLIC SATISFACTION ON MUNICIPAL SERVICES
PUBLIC SATISFCATION LEVELS
Public service delivery complaints increased during the 2017/18 financial year, mainly due to problems
experienced with old and aging water infrastructure network, turnaround time for water and sewer complaints
due financial constraints faced by the municipality, across Merafong. Sinkhole formations being the major
contributor to the impact of water supply in Carletonville, Khutsong South Extensions and Welverdiend.
Further complaints especially from business and the community on the refuse removal service has shown an
increase due to financial constraints.
T 2.11.1
Satisfaction Surveys Undertaken during: Year 2016/2017 and Year 2017/2018
Subject matter of survey Survey method Survey date
No. of people included in survey
Overall satisfaction with:
Municipality
13 Press Releases with regards to Municipal actions during the year under discussion
2017/18
Newspapers Electronic Media
Municipal Service Delivery
62 Press Enquiries on Municipal Service Delivery failures during the year
2017/18 Newspapers Electronic Media
(c) Mayor 01 Media Monitoring/ Press Enquiries on actions by the Executive Mayor during the year.
2017/18
Newspapers/ Electronic Media
Satisfaction with: 2017/18 Newspapers/ Electronic Media
(a) Refuse Collection 23 Media Monitoring/ Press Enquiries on Service Delivery failures during the year
2017/18 Newspapers/ Electronic Media
(b) Road Maintenance 53 Media Monitoring/ Press Enquiries on Service Delivery failures during the year
2017/18 Newspapers/ Electronic Media
(c) Electricity Supply 62 Media Monitoring/ Press Enquiries on Service Delivery failures during the year
2017/18 Newspapers/ Electronic Media
(d) Water Supply
146 Media Monitoring/ Press Enquiries on Service Delivery failures during the year
2017/18
Newspapers/ Electronic Media
(e) Information supplied by municipality to the public
0 Website Based Enquiries on Service Delivery failures during the year
2017/18 Website
59
(f) Opportunities for consultation on municipal affairs
Community outreach to register community complaints in all areas.
18 Feb 2017 to 2 March 2018
Community Consultation
* The percentage indicates the proportion of those surveyed that believed that relevant performance was at least satisfactory T 2.11.2
COMMENT ON SATISFACTION LEVELS:
For the 2017/18 the municipality did not commission a survey. The information contained in the above table is
extracted from the Call and Contact Centre and Press Enquiries.
T2.11.2.2
60
CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I)
INTRODUCTION
The key service delivery achievements of the municipality for the year under review are measured against the
Service Delivery and Budget Implementation Plan to give effect to the needs of the community as prioritized in the
approved budget.
During the year of review the municipality has aligned its Service Delivery and Budget Implementation Plan to the 14
regional outcomes of the Regional Plan and the strategic objectives of the municipality. The alignment of the
Regional outcomes to the Key Performance Areas/Goals as indicated below.
STRATEGIC KEY PERFORMANCE AREA REGIONAL OUTCOMES
Goal 1 : Basic Service Delivery Outcome 1 : Basic Service Delivery Improvement
Goal 2 : Local Economic Development and Social Development
Outcome 5 : Safe Communities Outcome 6 : Educated Communities Outcome 7 : Healthy Communities Outcome 10 : Social Cohesive Communities Outcome 11 : Reduced Unemployment Outcome 12 : Economic Development
Goal 3 : Transformation and Organisational Development
Outcome 3 : Skilled, Capacitated, Competent and Motivated workforce Outcome 14: Institutional Planning and Transformation
Goal 4 : Municipal Financial Viability and Management
Outcome 13 : Robust Financial Administration
Goal 5 : Good Governance and Public Participation Outcome 2 : Accountable Municipal Administration Outcome 4 : Ethical Administration and Good Governance
Goal 6 : Intergraded Spatial Development Framework Outcome 8 : Sustainable Environment Outcome 9 : Build Spatially Integrated Communities
For the year under review the municipality has achieved an overall performance of 84.42% on the implementation of the SDBIP. In comparing the performance with the previous financial year the following graphs reflect an overview of the organizational performance on the key priorities of the municipality.
61
Graph 1: Graph 2:
2016/2017 Organisational Performance 2017/2018 Organisational Performance
84.47% 84.42%
0
10
20
30
40
50
60
70
80
90
100
Goal 1 Goal 2 Goal 3 Goa 4 Goal 5 Goal 6
68.99%
98.47%100%
78.45%
58.4%
99.88%
Overall Organisational Performance 2016/17
2016/17 84.47%
0
10
20
30
40
50
60
70
80
90
100
Goal 1 Goal 2 Goal 3 Goal 4 Goal 5 Goal 6
64.46%
80.04%
92.11%
97.8%
85.83%
91.88%
Average Organisational Performance 2017/18
2017/2018 84.42%
The municipality has achieved an average performance of 64.46%. The main challenges experienced in the
performance on Goal 1, Basic service delivery, was the inability to fully implement the Infrastructure maintenance
plan as a result of council cash flow challenges. The departmental maintenance plans were developed based on the
approved budget and budgeted revenue based on the projected collection rate of 75%. The municipality could only
realized an average collection rate of 68% resulting in a negative cash flow situation.
With regards to Goal 2 Local Economic and Social Development, the performance achieved is 80.04%. The main
challenges experienced that impacted negatively on the performance were the following: The Revision and
standardisation of the Regional Public Safety by-laws that could not be finalised due to pending public participation
processes by West Rand District Municipality. Council’s negative cash flow situation also impacted negatively on the
implementation of social services development plan.
The municipality achieved an average performance of 92.11% on Goal 3, Transformation and Organisational
Development. Prioritized vacant positions could not be filled during the year due to the cash flow situation of
council.
The municipality achieved an average performance of 97.80% for Goal 4, Municipal Financial Viability and
Management. Poor collection rates due to non-payment for services rendered in some townships resulting in the
inability to pay creditors within 30 days as legislated are the main reasons for not achieving planned targets.
62
With regards to Goal 5, Good Governance and Public Participation the average performance achieved is 85.83%.
Tthe main reasons that impacted negatively on performance achieved related to the non-implementation of ward
committee support program and the Internal
Audit plan for the year of review could also not be implemented fully due to capacity constraints in the Internal
audit section impacted upon by the financial situation of the municipality.
The municipality achieved an average performance of 91.88% for Goal 6, Spatial Development. The main reason that
impacted negatively was the inability to maintain Parks and Cemeteries activities due to cash flow challenges.
T 3.0.1
COMPONENT A: BASIC SERVICES
This component includes: water; waste water (sanitation); electricity; waste management; and housing services; and
a summary of free basic services.
INTRODUCTION TO BASIC SERVICES WASTE MANAGEMENT Waste is being collected once a week with kerbside method in the formal household. Businesses around Merafong are also being serviced using the 6m
3 Containers and 240l bins. Additional 3 000 Wheelie bins will be procured and
distributed to the newly developed areas to enable the introduction of the waste removal service in the new financial year. Removal of illegal dumping is being scheduled and executed monthly with the available limited resources. Street Cleaning/ Litter Picking service is done daily including weekends around Fochville and Carletonville CBD`s. In Townships litter picking has been done through CWP. There is a drop off facility in Welverdiend and Transfer Station in Fochville for community to dispose their solid waste. They are accessible even on the weekends. Carletonville Landfill site is used for the final and safe disposal of waste in the Municipality. A service provider has been appointed to operate and maintain the landfill site. There are NYS beneficiaries who bringing temporary relieve to staff shortage. Merafong Waste Recycling Project is a project operating from Fochville Transfer Station and has been formally registered as a Co-operative operated and managed by the local beneficiaries.
63
Water Access to potable water is a basic human need and a human right. Basic services are supplied to consumers across the area of the Municipality by means of network connections, communal standpipes in informal settlements and by means of water tanks and tankers in rural areas and areas affected by water shortages. In Kokosi extension 6, an additional 1 400 households were connected for the first time in the year as part of the Kokosi Extension 6 low cost housing project. Free basic services in the form of a subsidy for 6kl of water per poor household is supplied to consumers who have been approved as indigents, according to the Council’s Indigent Policy. During this year under review free basic water was supplied to 2679 registered indigents. Sanitation Proper sanitation gives dignity to human beings and promotes good health. The basic services are provided for both formal and informal area in the form of water-borne systems and ventilated improved pits respectively. However in the rural areas the expansion of households in the settlements is causing challenges in supplying sanitation to 100% of consumers. There is also a challenge in formal areas where people are occupying stands illegally. Electricity Electricity is a basic service, which is regulated by the National Energy Regulator South Africa (NERSA). In terms of its licence granted by NERSA the municipality has the responsibility to provide electricity to the community in the municipal area. The function has the responsibility to enable development in the municipal area whilst sustaining the existing customer base. Electricity is also a trading service which means that electricity provision should be done in such a way that the municipality generate income from the service in order to execute its functions. Electricity is provided to the registered indigents in the area free of charge up to a limit of 50kWh per month Housing:
Merafong City LM is committed to decrease its housing backlog through the following programmes:
1. Provision of services which include water and sanitation
2. Provision of houses
3. Provision of tittle deeds to beneficiaries
Through the delivery of the above programmes we are ensuring a sustainable communities and creating jobs and
capacitation of local SMME’s. Merafong City LM has committed to continue improving the quality of life and the
dignity of the people through our partnership with Gauteng Department of Human Settlement.
Emergency Housing:
Old Khutsong Township has experienced a lot of sinkhole formations that resulted in the evacuation of families from
their properties. Some of the effected families have been allocated houses in Khutsong South Ext. 4. The remaining
will be catered for in new Khutsong South Ext. 5 & 6 project along with Khutsong Ext. 3 residents.
64
Elijah Barayi Mega Village:
Elijah Barayi Mega Village is a Mega Housing Project that has taken a holistic approach to housing development
through establishing plans to develop housing units that will not only be good quality but also be affordable to a
larger target group. The project is a first of its kind in Merafong. The project aims to create a new community, bring
new resources and new opportunities for Merafong residents and other geographical arears surrounding Merafong.
The project plans to develop infrastructure, and deliver commercial and social developments, these will include:
- New Convenience Shopping centre and 4 Business Facility Sites;
- 8 Primary, 4 Secondary schools and FET College;
- Local Community Hall, 4 Municipal Sites, Local parks and 4 Taxi Ranks;
- 1 Police station, 2 post offices, 3 clinics, 1 fire station and 1 Library;
- 18 Crèches and 12 church sites and;
- An old age home
In addition to the above and most importantly, the project plan is to build more than 12 000 Mixed Housing
Typologies Units. These will include approximately 5 000 RDP units, 1500 Rental units, 1000 Social Housing units,
and over 1500 Flisp. In addition, over its life span it will create more than 500 job opportunities for Merafong City
residents.
Progress to date: To date, over 2000 stands have been provided with internal services (water & waste pipes), 48
foundations have been completed over six week period and 56 units have been completed over a two week period.
In addition, the project has appointed over 90% of local subcontractors, 13 subcontractors for foundations, and 42
for bricklaying. These subcontractors were appointed through a thorough process of engagement that involved:
- Subcontractors registering themselves in the Municipality LED database;
- The Developer interviewing each and every one of these subcontractors
- The Developer shortlisting the qualifying subcontractors;
- The Developer allocating work to these local subcontractors;
In addition, over 95% of local general labourers have been employed by the project. The project selects local people
through a democratic, fair and transparent person that guarantees every participating member of the community an
equal opportunity to be selected to work for the project.
Going forward the project plans to deliver approximately 1500 fully completed units by March 2019. It is hoped that
the first 500 units would be completed and handed over to beneficiaries by December 2018.
T 3.1.0
65
3.1. WATER PROVISION
INTRODUCTION TO WATER PROVISION
The Carletonville and Khutsong reservoirs will be assessed after the sinkhole rehabilitation project has been
completed. The assessment will indicate the sustainability of existing reservoirs. Carletonville area is supplied
directly from Rand Water and that impacts a lot on the existing infrastructure, as it fails to handle the abnormal
pressure. The Addata pipe line reconstruction is still not yet completed and it impacts on Welvediend and Khutsong
South Extensions supply negatively. The supply is currently bypassed from 900 mm to 250 mm temporarily to enable
the adequate supply.
The new housing allocation in Kokosi Extension 6 creates a high water demand which leads to water shortage. The
new reservoir needs to be constructed to address the water supply challenges. The water losses are caused by
ageing infrastructure, unmetered informal settlements, pressure management and vandalism of the infrastructure.
Sanitation
The municipality renders 100 % sanitation services to formal settlements. Sanitation provision is still a challenge in
areas that are not yet formalized as townships, as a result, Ventilated Improved Pit latrine toilets are used. The
sanitation gravity network provides waterborne sewer connections to 55 379 stands .The infrastructure consists of
621 841.8 m of gravity sewer pipe lines, 11942 sewerage manholes, 4 sewerage pump stations and 5 Waste water
treatment works.
T3.1.1
Total Use of Water by Sector (cubic meters)
Residential Business Departmental Special Unaccountable water losses
2016/2017 6300531 683136 87503 27881 5617126
2017/2018 6580648 632858 64470 189772 6639325
T 3.1.2
66
0-Jan-00
26-Nov-37
23-Oct-75
23-Oct-75
23-Oct-75
23-Oct-75
23-Oct-75
23-Oct-75
Residential Business Departmental Special Unaccountablewater losses
Cu
bic
met
er
Water use by Sector
2016/2017
2017/2018
T 3.1.2.1
COMMENT ON WATER USE BY SECTOR:
The use of water by the Residential and Special sector has increased in the year under review, possible causes would
be the increase in new housing allocations and high demand. The Business sector and Departmental use has
decreased whereas the unaccounted use has increased..
T 3.1.2.2
67
Water Service Delivery Levels
Households
Description 2014/2015 2015/2016 2016/2017 2017/2018
Actual Actual Actual Actual
No. No. No. No.
Water: (above min level)
Piped water inside dwelling 43 683 45 535 35 244 31 367
Piped water inside yard (but not in dwelling) 35 761 35 800 20 286 14 047
Using public tap (within 200m from dwelling ) 25 787 25 787 7 029 18 502
Other water supply (within 200m) 0 0 0 2 709
Minimum Service Level and Above sub-total 105 231 107 122 65 974 66 625
Minimum Service Level and Above Percentage 100% 100% 99% 100%
Water: (below min level)
Using public tap (more than 200m from dwelling) 0 0 0 0
Other water supply (more than 200m from dwelling 0 0 0 0
No water supply 0 0 644 0
Below Minimum Service Level sub-total 0 0 644 0
Below Minimum Service Level Percentage 0% 0% 1% 0%
Total number of households* 105 231 107 122 66 618 66 625
* - 1400 Kokosi ext. 6 allocation T 3.1.3
Households - Water Service Delivery Levels below the minimum
Households
Description 2014/2015 2015/2016 2016/2017 2017/2018
Actual Actual Actual Original Budget
Adjusted Budget
Actual
No. No. No. No. No. No.
Formal Settlements
Total households 66 624 43 683 45 535 38 665 38 665 38 665 Households below minimum service level 0 0 0 0 0 0
Proportion of households below minimum service level 0% 0% 0% 0% 0% 0%
Informal Settlements
Total households 25 787 25 787 27 315 27 315 27 315 27 315 Households ts below minimum service level 0 0 644 644 644 644
Proportion of households ts below minimum service level 0% 0% 2% 2% 2% 2%
T 3.1.4
68
* Means access to 25 liters of potable water per day supplied within 200m of a household and with a minimum flow
of 10 liters per minute
# 6,000 liters of potable water supplied per formal connection per month T 3.1.5
69
Water Service Policy Objectives Taken From IDP
Service Objectives Outline Service Targets 2016/2017 2017/2018 2018/2019 2019/2020
Target Actual Target Actual Target
Service Indicators *Previous Year
*Previous Year
*Current Year
*Current Year
*Current Year
*Following Year
Service Objective xxx
Households without minimum water supply
Additional Households provided with minimum water supply during the year (Number of households (HHs) without supply at year end)
644 644 2 816 2 138 1 400 2 391 2 138 12 000
Improve reliability of water supply
Reduce the number of interruptions (Ints) in supply of one hour or more compared to the baseline of Year -1 (% interruptions of one hour or more during the year)
10% 70% 10% 10% 50% 30% 10% 30%
Improve water conservation
Reduce unaccountable water levels compared to the baseline of Year -1 (% kilolitres (KLs) unaccounted for during the year)
30% 50.22% 15% 15% 47% 15% 15% 15%
Improve water quality Improvement in management of water quality 100% 100%
100% 100% 100% 100% 100%
T 3.1.6
70
Employees: Water Services
Job Level 2016/2017 2017/2018
Employees Posts Employees Vacancies (fulltime equivalents)
Vacancies (as a % of total posts)
No. No. No. No. %
0 - 3 1 0 1 100%
4 - 6 3 6 3 3 50%
7 - 9 5 35 17 26 74%
10 - 12 15 52 28 24 46%
13 - 15 51 104 58 46 44%
Total 74 198 106 100 51%
T3.1.7
Financial Performance Year 2017/2018: Water Services
R'000
Details
2016/2017 2017/2018
Actual Original Budget
Adjustment Budget
Actual Variance to Budget
Total Operational Revenue 259059 294930 294930 310024 5%
Expenditure:
Employees 29432 29482 31482 25155 -17%
Repairs and Maintenance 4336 9730 9727 1341 -625%
Other 265157 299753 283653 281858 -6%
Total Operational Expenditure 298925 338965 324862 308354 -10%
Net Operational Expenditure 39866 44035 29932 -1670 2737%
T 3.1.8
71
Capital Expenditure Year2017/2018 Water Services R' 000
Capital Projects
Year 2017/2018
Budget Adjustment Budget
Actual Expenditure
Variance from original budget
Total Project Value
Total All 56282 92505 57860 3%
Replacement of Khutsong Reservoir 20000 26807 15459 -29% 280
Khutsong North Water and Sewer Reticulation 10000 7700 5225 -91% 281
Internal Services (Khutsong Ext5 ) 26282 26457 11738 -124% 150
Internal Services (Khutsong Ext5 ) 0 26241 24310 100% 320
Upgrade existing Bulk Water line and Pump station 0 5300 1128 100% 90
T 3.1.9
COMMENT ON WATER SERVICES PERFORMANCE OVERALL:
Given the municipality’s current financial position, funding for capital projects from own funding is not
possible. The municipality therefore entirely relies on grant funding to address its capital requirements for
water infrastructure, especially in attending to the challenges of notably the bulk water storage requirements
as part of the bulk infrastructure. Bulk storage (reservoirs) have been negatively affected by the underlying
dolomitic conditions rendering most of the storage facilities non-operational due to sinkhole formations, to
such extent that the municipality was declared a disaster area.
Khutsong North Water & Sewer Reticulation
Total project cost in terms of the MIG BP approved amounts to R242.976 million. This project aims for the
rehabilitation of both water and sanitation services that will - given annual grant funding constraints – be
implemented over several years in a phased manner. Rehabilitation of the water and sanitation services will
be prioritised in alignment with geotechnical investigations already completed to firstly address the areas
with the highest risk of sinkhole formation exacerbated by leaking services. A consultant was appointed in
the 2017/2018 financial year and planning and design has commenced with the services survey completed
and CCTV investigations in process to assess the condition of services. Survey of services was delayed due to
community objections that impacted negatively on expenditure.
Given the magnitude of the project, planning and design will take much longer than originally envisaged
whereas the 2017/18 budget already made provision for the start of construction. The rate of expenditure on
planning and design is significantly lower than for construction, therefore expenditure was commensurately
lower than budgeted for.
72
Replacement of Khutsong Reservoir
Total project cost in terms of the WSIG approved amounts to R70 million to be availed over a period of 3
years in budgets of R20m (2016/17), R20m (2017/18) and R30m (2018/19) respectively. This project aims for
the replacement of the 30ML Khutsong reservoir that had to be decommissioned due to adverse underlying
dolomitic conditions.
Upon excavation of the reservoir footprint for the foundation, sinkholes were encountered that necessitated
extensive geotechnical remedial measures to be implemented. These measures delayed progress to the
extent that completion is now planned during the 2019/2020 financial year. Slow progress had associated
implications on expenditure that will necessitate for a rollover of funding to be applied for.
Khutsong Reservoir
Post Disaster Relief Grant funding was availed in an Amendment to the DoRA during October 2017, but funds
were only transferred during the 4th
Quarter of the financial year. This project was identified to conduct
geotechnical and structural integrity investigations to establish whether there was any chance of
recommissioning the reservoir. A Consultant was appointed and the geotechnical investigation concluded,
indicating no chance of retaining the operation ability of the reservoir and the necessity of implementing
precautionary geotechnical measures to ensure continued use of infrastructure intended for complementary
use to the new reservoir under construction.
Given the late transfer of the funding, the project will have to be executed as a multi-year project and a
rollover will have to be applied for.
Carletonville Reservoir (007)
This project is also funded by the Post Disaster Relief Grant. Consultant was appointed to conduct
geotechnical and structural integrity investigations to ensure that the reservoir can be recommissioned
without risk subsequent to the rehabilitation of the sinkholes in close vicinity of the reservoir under the
previous Disaster Management Grant.
Khutsong Water Tower (Chiawelo)
Project similarly as above funded by the Post Disaster Relief Grant. Consultant was appointed and
geotechnical investigations concluded, indicating a necessity for geotechnical precautionary measures to be
implemented to safeguard the integrity of the infrastructure.
Khutsong Ext. 5/6 Internal Water & Sewer Services (Phase 4)
This project is part of the phased development of the Khutsong South town which added 500 serviced stands
on which 500 houses are to be built. Despite procurement challenges outside the control of the municipality
which caused part of the construction to commence very late, the project was completed within the 2017/18
financial year with savings on the budget.
Upgrading of Existing Bulk Water Line and Pump-station (Kokosi Ext 6)
The project aim is to improve water supply and pressure to the newly developed Kokosi Ext. 6. Despite the
repair of leaking pipes and PRV valves, the conditions did not improve and it was concluded that the best
solution was the construction of a dedicated water supply pipeline. The route however will traverse several
73
watercourses for which compulsory environmental impact studies are required. Since RoD approval remains
awaited, construction could not proceed with a commensurate low rate of expenditure.
Water provision to the Khutsong South Extensions and Welverdiend is currently bypassed due to the pipe that
collapsed in the sinkhole. The adequate water supply is depending on the reconstruction of 900 mm pipe line.
Khutsong proper new reservoir is under construction. The 007 and Bluebell street water pipe lines were
reconstructed as the results of sinkhole formation. The municipality has commenced with the water leaks
repair programme. The municipality performed very well under the water licence targets against Integrated
Vaal River System Project 1600 water demand management.
T 3.1.10
3.2 WASTE WATER (SANITATION) PROVISION
INTRODUCTION TO SANITATION PROVISION
Merafong City Local Municipality supplies sanitation services to consumers in Merafong through water-borne
sewer systems connected to Pump stations and Waste water treatment works and the Ventilated improved
pit latrine toilets in informal and rural areas.
Proper sanitation gives dignity to human beings and promotes good health. The basic services are provided
for both formal and informal areas in the form of water-borne systems and ventilated improved pits
respectively. However in the rural areas the increase of households in the settlements is causing challenges in
supplying sanitation to 100% of consumers. Installation of toilets units to each and every household in
Merafong cannot be achieved to a 100% level due to rapid growth challenges experienced in rural areas
where communities reside on private land. The Northern part of Merafong municipality is located on a
Dolomitic ground area and it continuously affected by sinkhole formation.
Currently there are no bucket system toilets in the entire Merafong. The ventilated improved pits toilets
installed at the informal settlements do not fully cover all the areas. Some of the new extended informal
areas use Pit Latrines for their sanitation. It is impractical to cover them all as they keep increasing after they
have been serviced.
T 3.2.1
74
T 3.2.2
Sanitation Service Delivery Levels
*Households
Description 2015/2016 2016/2017 2017/2018
Outcome Outcome Target Actual
No. No. No. No.
Sanitation/sewerage: (above minimum level)
Flush toilet (connected to sewerage) 55 301 53 979 68 003 48 098
Flush toilet (with septic tank) 1 300 1 386 1 300 25
Chemical toilet 0 420 420 0
Pit toilet (ventilated) 9 786 10 140 10 140 18 502
Other toilet provisions (above min.service level) 0 0 0 0
Minimum Service Level and Above sub-total 66 387 65 925 66 603 66 625
Minimum Service Level and Above Percentage 100.00% 98.98% 98.99% 100%
Sanitation/sewerage: (below minimum level)
Bucket toilet 0 0 0 0
Other toilet provisions (below min.service level) 0 0 0 0
No toilet provisions 0 678 678 0
Below Minimum Service Level sub-total 0 678 678 0
Below Minimum Service Level Percentage 0.000% 1.018% 1.008% 0%
Total households 66 387 66 603 67 281 66 625
*Total number of households including informal settlements T 3.2.3
75
Households - Sanitation Service Delivery Levels below the minimum
Households
Description
2015/2016 2016/2017 2017/2018
Actual Actual Original Budget
Adjusted Budget
Actual
No. No. No. No. No.
Formal Settlements
Total households 56 601 53 979 53 979 55 379 55 379 Households below minimum service level 0 0 0 0 0 Proportion of households below minimum service level 0.00% 0.00% 0.00% 0.00% 0.00%
Informal Settlements
Total households 9 786 11 946 11 946 11 946 11 946 Households ts below minimum service level 0 0 0 0 0 Proportion of households ts below minimum service level 0.00% 0.00% 0.00% 0.00% 0.00%
T 3.2.4
T 3.2.5
76
Waste Water (Sanitation) Service Policy Objectives Taken From IDP
Service Objectives Outline Service Targets Year 2016/17 Year 2017/18 Year 2018/19
Year 2019/20
Target Actual Target Actual Target
Service Indicators *Previous Year
*Previous Year
*Current Year
*Current Year
*Current Year
*Following Year
Service Objective
Provision of toilets within standard
Additional Households (HHs) provided with minimum sanitation during the year (Number of HHs remaining without minimum sanitation at year end)
678 678 2 816 2 138 1 400 2 391 2 138 12 000
Improve management of effluent quality
Improvement management of effluent quality
100% 74% 100% 100% 69% 100% 100% 100%
T 3.2.6
77
Year -1
Employees Posts Employees Vacancies (fulltime
equivalents)
Vacancies (as a % of
total posts)
No. No. No. No. %
Employees: Sanitation Services
Job Level
Year 0
NUMBER OF EMPLOYEES INCLUDED IN THE WATER TABLE 3.1.7
Financial Performance Year 2017/2018: Sanitation Services
R'000
Details
2016/2017 2017/2018
Actual Original Budget
Adjustment Budget
Actual Variance to Budget
Total Operational Revenue 120 52385 49780 49843 -5%
Expenditure:
Employees 125 244 250 248 2%
Repairs and Maintenance 25 244 250 248 2%
Other 45 244 250 248 2%
Total Operational Expenditure 195 732 750 744 2%
Net Operational Expenditure 75 -51653 -49030 -49099 -5%
T 3.2.8
Capital Expenditure Year 2017/2018: Sanitation Services
R' 000
Capital Projects
Year 2017/2018
Budget Adjustment Budget
Actual Expenditure
Variance from original budget
Total Project Value
Total All 2934 3203 3185 8%
Sludge Drying Beds Kokosi/Khutsong 2934 3203 3185 8% 280
T 3.2.9
78
COMMENT ON SANITATION SERVICES PERFORMANCE OVERALL:
Sanitation projects included in the capital budget for expenditure during the 2017/18 financial year comprise of
the following:
Sludge Drying Beds - Kokosi & Khutsong WWTW
Given budget limitations, the expenditure for 2017/18 will initially focus on the start of a multi-year project for
the provision of sludge drying beds at the Kokosi WWTW identified as the most critical taking into consideration
the ongoing residential development in the area. On completion, the MIG Business Plan (BP) makes provision
for the implementation of a similar project at the Khutsong WWTW. Additional funding will however be
required since the Gauteng Department of Water & Sanitation in their assessment of the aforementioned BP
did not approve the BP budget as requested for the Works at both the WWTW’s. A request for additional
funding was consequently submitted for which approval is awaited. The consultant was appointed on a turnkey
basis and the construction commenced on 14 May 2018.
Khutsong Ext 2 (Skopas) Collapsed Sewer Line
Post Disaster Relief Grant funding was availed in an Amendment to the DoRA during October 2017, but funds
were only transferred during the 4th Quarter of the financial year. This project was identified for the
rehabilitation of a sinkhole to which the collapse of the sewer pipeline could be attributed. Budget estimates
did not allow for relocation of residents since some dwellings will probably have to be demolished to effect the
sinkhole rehabilitation.
A Consultant was appointed and the geotechnical investigation concluded. However, given the late transfer of
the funding, the project will have to be executed as a multi-year project and a rollover will have to be applied
for.
Onyx Street Bulk Sewer Pipeline Replacement
This project is also funded by the Post Disaster Relief Grant. As with the aforementioned project, the aim of the
project is to rehabilitate the sinkhole having been the cause of the persistent sewer blockages and to replace
the pipeline to overcome the operational challenges.
A Consultant was appointed and the geotechnical investigation concluded. However, given the late transfer of
the funding, the project also will have to be executed as a multi-year project and a rollover will have to be
applied for.
Khutsong Nzwanzwa Street Outfall Sewer Pipeline Bypass
Project similarly as above funded is by the Post Disaster Relief Grant. Objective of the project is to reroute the
outfall sewer that persistently overflows due to damage to which the sinkholes contributed. Rehabilitation of
the sinkholes should be done, but is unlikely to be accommodated due to budgetary constraints. Precautionary
measures at least will have to be implemented to close up the sinkhole to minimise the risk of injury or death.
79
Consultant was appointed and geotechnical investigations concluded. Project also will have to be executed as a
multi-year project and a rollover will have to be applied for due to the late transfer of the funding.
The Khutsong new ext 3 sewer outfall pipeline was constructed as a result of the pipe that collapsed due to
sinkhole formation. All five Waste Water treatment works effluent quality is 74%.
T 3.2.10
ELECTRICITY
INTRODUCTION TO ELECTRICITY
The Municipality provides Electricity to its area of jurisdiction through its license from the Energy Regulator of
South Africa. There are areas within the municipality that are licensed to Eskom such as the Mining Houses, the
farms in the urban edge as well as the Old Khutsong Township.
The provision of electricity services is in terms of provision of the following:
1. Bulk Supply
2. Medium and High voltage distribution network
3. Low Voltage and customer connections
4. Metering and monitoring
The thrust of the strategy for the year under review was the extension of services to the newly developed areas
of Kokosi and Khutsong South Extensions. The provision of services to the informal settlements also
commenced in 2017/18 with a long term plan for the next five years.
Maintenance and infrastructure renewal plans were also revised to plan for the next 3 – 5years. Public Lighting
new and existing shall also be the main focus for the next financial year of 2018/19.
T 3.3.1
80
T 3.3.2
81
Electricity Service Delivery Levels
Households
Description
2014/2015 2015/2016 2016/2017 2017/2018
Actual Actual Actual Actual
No. No. No. No.
Energy: (above minimum level)
Electricity (at least min.service level)
6 046 6 050 6 095 6 416
Electricity - prepaid (min.service level)
19 564 20 147 21 097 21 097
Minimum Service Level and Above sub-total
25 610 26 197 27 192 27 513
Minimum Service Level and Above Percentage
113% 102% 104% 100%
Energy: (below minimum level) Not applicable. All households provided with full level of service.
Not applicable. All households provided with full level of service
Not applicable. All households provided with full level of service
Not applicable. All households provided with full level of service
Electricity (< min.service level)
Electricity - prepaid (< min. service level)
–
- - -
Other energy sources 0 0 0 0
Below Minimum Service Level sub-total
Not applicable Not applicable Not applicable Not applicable
Below Minimum Service Level Percentage
Total number of households 22 743 25 610 26 197 27 513
T 3.3.3
82
Households - Electricity Service Delivery Levels below the minimum
Households
Description
2014/2015 2015/2016 2016/2017 2017/2018
Actual Actual Actual Original Budget
Adjusted Budget
Actual
No. No. No. No. No. No.
Formal Settlements
Total households 23996 25610 27192 27763 27513 27513
Households below minimum service level
0 0 0 0 0 0
Proportion of households below minimum service level
0 0 0 0 0 0
Informal Settlements
Total households 0 0 0 249 0 0
Households ts below minimum service level
0 0 0 0 0 0
Proportion of households ts below minimum service level
0 0 0 0 0 0
T 3.3.4
83
Electricity Service Policy Objectives Taken From IDP
Service Objectives Outline Service Targets 2015/2016 2016/2017 2017/2018 2018/2019
Target Actual Target Actual Target
Service Indicators *Previous Year
*Previous Year
*Current Year
*Current Year
*Current Year
*Following Year
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)
Service Objective xxx
Provision of minimum supply of electricity
Additional households (HHs) provided with minimum supply during the year (Number of HHs below minimum supply level)
1800 564 1200 1200 820 321 853 1535
T 3.3.5
84
Employees: Electricity Services
Job Level
2016/2017 2017/2018
Employees Posts Employees Vacancies (fulltime equivalents)
Vacancies (as a % of total posts)
No. No. No. No. %
0 - 3 1 1 1 0 0%
4 - 6 6 11 6 5 45%
7 - 9 16 27 16 11 41%
10 - 12 39 64 37 27 42%
13 - 15 4 30 4 26 87%
16 - 18 0 0 0 0 0%
19 - 20 0 0 0 0 0%
Total 66 133 64 69 52%
T 3.3.6
Financial Performance Year 2017/2018: Electricity Services
R'000
Details
2016/2017 2017/2018
Actual Original Budget
Adjustment Budget
Actual Variance to Budget
Total Operational Revenue 263848 287444 253724 251527 -14%
Expenditure:
Employees 30640 30995 33495 30109 -3%
Repairs and Maintenance 4055 7929 6942 1019 -678%
Other 224542 295186 294645 237158 -24%
Total Operational Expenditure 259237 334110 335082 268286 -25%
Net Operational Expenditure -4611 46666 81357 16759 -178%
T 3.3.7
85
Capital Expenditure Year 2017/2018: Electricity Services
R' 000
Capital Projects
2017/2018
Budget Adjustment Budget
Actual Expenditure
Variance from original budget
Total Project Value
Total All 12500 42500 40596 69%
Khutsong South Electrification Phase 5 5000 5000 3650 -37% 280
Kokosi Ext 99 Electrification 5000 5000 4963 -1% 150
Kokosi Ext 6 Electrification 30000 29991 100% 320
Main Substation Upgrade - Fochville 2500 2500 1992 -26% 90
T 3.3.8
COMMENT ON ELECTRICITY SERVICES PERFORMANCE OVERALL:
The following capital projects were implemented in the year 2017/2018:
Khutsong South Extensions Electrification Phase 6
The contractors reached completion on 30 June 2018 with the installation of 308 connections to infill areas in
Khutsong South. Consultant was initially delayed by the unavailability of a comprehensive list of sites to be
serviced and towards completion of the project by residents refusing to be connected.
Budget was not fully spent since the scope of works did not fully cover the available budget. Rollover of
remaining funding will therefore has to be applied for.
Kokosi Ext 99 Electrification
Due to annual budget constraints the electrification of the township is implemented in phases. Contractor
reached practical completion for the 2017/18 financial year’s phase on 30 June 2018. The next phase is funded
and the project will continue in the 2018/19 FY.
Fochville Main Substation Upgrade
Given that budget constraints did not allow for construction, the budget was utilized for the acquisition of
material in support of construction to follow upon acquisition of funding.
Electrification of the Township (Kokosi Ext 6)
Due to a limited budget that was available for the electrification of the township in this financial year,
electrification was implemented in phases. Contractor reached practical completion for the 2017/18 financial
year’s phase on 30 June 2018. The next phase is funded from an alternative source and the project will
continue in the 2018/19 FY.
Project performance was overall achieved with expenditure and key milestones achieved in the 2017/18
financial year.
T 3.3.9
86
3.4 WASTE MANAGEMENT (THIS SECTION TO INCLUDE: REFUSE COLLECTIONS, WASTE
DISPOSAL, STREET CLEANING AN D RECYCLING)
INTRODUCTION TO WASTE MANAGEMENT
Carletonville Landfill site is used for the final and safe disposal of waste in the Municipality. A service provider
has been appointed in May 2016 to operate and maintain the landfill site for the period of three years. The
landfill site score as per Audit conducted by Gauteng Department of Agriculture & Rural Development (GDARD)
has improved from 20.3% in April 2017 to 50% April 2018, this score represents an improvement of 29.7%.
The Municipality has allocated R8 million for the installation of the boundary fence, lights, revamping of offices
and guard house at the landfill site to improve further the compliance of the site. The contractor was
appointed, commenced with the projects and the progress is on 70%.
Merafong Waste Recyling Project that was launched in September 2012 is operating from Fochville Transfer
Station and has been formally registered as a Co-operative operated and managed by the local beneficiaries.
The project is operating with 9 personnel. 120 tonnages have been generated monthly.
Top priorities for the Solid Waste Department:
Provision of 30m3 containers, additional Drop off facilities, Skip Loaders, Roll on Roll off Trucks and Front End
Loader are needed to meet the waste service demand.
Recruitment of Senior and Junior personnel as Solid Waste Department is operating with 47% staff capacity.
Construction of Carletonville Waste Management Depot that has commenced in July 2017 and targeted to be
completed in September 2018, will give conducive office accommodation to Solid Waste Personnel.
T 3.4.1
87
Solid Waste Service Delivery Levels
Households
Description Year -
2014/15 Year -2015/16 Year -2016/17 Year-2017/18
Actual Actual Actual Actual
No. No. No. No.
Solid Waste Removal: (Minimum level)
Removed at least once a week 30060 30060 31448 31391
Minimum Service Level and Above sub-total 30060 30060 31448 31391
Minimum Service Level and Above percentage 86,0% 86,0% 93,12% 92,31%
Solid Waste Removal: (Below minimum level)
Removed less frequently than once a week - - - 1200
Using communal refuse dump 13413 13413 13413 432
Using own refuse dump 49220 53645 53645 33502
Other rubbish disposal 49220 53645 53645 33502
No rubbish disposal 49220 53645 53645 33502
Below Minimum Service Level sub-total 62588 67058 67058 35132
Below Minimum Service Level percentage 53,0% 55,0% 54,0%
Total number of households 92648 97073 98506 66525
T 3.4.2
Households - Solid Waste Service Delivery Levels below the minimum
Households
Description Year -
2014/15 Year -
2015/16 Year -
2016/17 Year-
2017/18
Actual Actual Actual Original Budget
Adjusted Budget
Actual
No. No. No. No. No. No.
Formal Settlements
Total households 35060 30060 31448 32951 32591 32591 Households below minimum service level 5000 5000 2164 1200 1200 1200
Proportion of households below minimum service level 14% 14% 7%
Informal Settlements
Total households 62588 67058 67058 35132 35132 35132 Households ts below minimum service level 44220 48645 53645 432 432 432
Proportion of households ts below minimum service level 71% 73% 80%
T 3.4.3
88
Waste Management Service Policy Objectives Taken From IDP
Service Objectives Outline Service Targets Year-2015/16 Year-2016/17 Year-2017/18
Target Actual Target Actual Current Year
Service Indicators
*Previous Year
*Previous Year
*Current Year
Target Actual *Following Year
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)
Service Objective xxx
Provision of weekly collection service per household (HH)
Proportionate reduction in average weekly collection failures year on year (average number of collection failures each week)
100% 86% 100% 100% 93.12% 100% 92.31% 100%
Future capacity of existing and earmarked (approved use and in council possession) waste disposal sites
The amount of spare capacity available in terms of the number of years capacity available at the current rate of landfill usage 14yrs 14yrs 14yrs 14yrs 14yrs 13yrs 13yrs 13yrs
Proportion of waste that is recycled
Volumes of waste recycled as a percentage of total volume of waste disposed of at landfill sites.
10% 8% 10% 10% 9.34% 20% 24.93% 25%
Proportion of landfill sites in compliance with the Environmental Conservation Act 1989.
x% of landfill sites by volume that are being managed in compliance with the Environmental Conservation Act 1989.
100% 15.6% 0% 0% 18.70% 100% 50% 80%
T 3.4.4
89
Employees: Solid Waste Management Services
Job Level
2016/2017 2017/2018
Employees Posts Employees Vacancies (fulltime equivalents)
Vacancies (as a % of total posts)
No. No. No. No. %
0 - 3 1 5 0 5 100%
4 - 6 1 11 1 10 91%
7 - 9 17 38 18 20 53%
10 - 12 1 1 1 0 0%
13 - 15 113 211 106 105 50%
Total 133 266 126 140 53%
T3.4.5
Employees: Solid Waste Management Services
Job Level
2016/2017 2017/2018
Employees Posts Employees Vacancies (fulltime equivalents)
Vacancies (as a % of total posts)
No. No. No. No. %
0 - 3 ALL WASTE PERSONNEL CAPTURED UNDER T3.4.5
4 - 6
7 - 9
10 - 12
13 - 15
Total
T3.4.6
Financial Performance Year 2017/2018: Solid Waste Management Services
R'000
Details
2016/2017 2017/2018
Actual Original Budget Adjustment Budget
Actual Variance to Budget
Total Operational Revenue 59094 66614 65417 65156 -2%
Expenditure:
Employees 29785 30253 32253 30513 1%
Repairs and Maintenance 0 0 685 100%
Other 31677 24534 20684 33363 26%
Total Operational Expenditure 61462 54787 52937 64561 15%
Net Operational Expenditure 2368 -11827 -12480 -595 -1888%
T 3.4.7
90
Year 2016/2017
Actual Original Budget Adjustment
Budget
Actual Variance to
Budget
Total Operational Revenue
Expenditure:
Included in Waste Management Services
Total Operational Expenditure
Net Operational Expenditure
T 3.4.8
Financial Performance Year 2017/2018: Waste Disposal and Other Services
R'000
Details
Year 2017/2018
Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the
Actual and Original Budget by the Actual.
Included in Waste Management Services
Capital Expenditure Year 2017/2018: Waste Management Services
R' 000
Capital Projects
Year 2017/2018
Budget Adjustment Budget
Actual Expenditure
Variance from original budget
Total Project Value
Total All 31415 34498 34271
Construction of Carletonville Waste Management Depot 23410 27878 30283 129% 1860433
Rehabilitation of Rooipoort Landfill Site 8005 6620 3988 50% 1501686
T 3.4.9
COMMENT ON WASTE MANAGEMENT SERVICE PERFORMANCE OVERALL:
Construction of Carletonville Waste Depot that budgeted for R36 141 965.43 has commenced in July 2017 and
targeted to be completed in September 2018, will give conducive office accommodation to Solid Waste
Personnel.
91
Carletonville Landfill Site Phase 2:
The Municipality has allocated R8 million for the installation of the boundary fence, lights, revamping of offices
and guard house at the landfill site to improve further the compliance of the site. The contractor was
appointed, commenced with the projects and the progress is on 70%.
Construction Carletonville Waste Management Depot
Construction progress limited by annual budget constraints. Additional funding was availed to the project from
other MIG-funded projects where savings or under performance threatened under expenditure of the grant.
Extra funding was made through the municipality’s Virement Policy. Progress claims were aligned with the
available budget. This multi-year project is scheduled for completion during the 2018/19 financial year.
Rehabilitation (Phase 2) Carletonville Landfill Site
Project start delayed due to delayed procurement in the absence of an approved Consultant's panel with
commensurate lower than planned expenditure. Project will be carried over to 2018/19 FY as a multi-year
funded project.
T 3.4.10
3.5 HOUSING
INTRODUCTION TO HOUSING
The modernisation of Human Settlements and urban development as one of the pillars for radical
transformation is achieved through Merafong’s vision of a fully integrated community with residential, business
and community facilities, as entrenched in the layout of the Khutsong South Human Settlement project and
Kokosi inner-city development.
The Municipality has continued its Housing programme in accordance with the Municipal Housing Plan,
incorporated in the Integrated Development Plan. The Municipality is the developer in the Khutsong South
Extensions Housing Project. The first phase of 5 500 top structures and associated infrastructure is completed.
A phased implementation process will be followed in the Khutsong South Integrated Settlement project, subject
to the availability of funding. The first phase implemented over the Medium Term Revenue and Expenditure
Framework provided for:
Internal Civil Engineering services – Water, Sewer, Roads and Storm water
Bulk Civil Engineering Services (partially) – Water, Sewer, Roads and Storm water v
Social Infrastructure
A total of 5650 top structures were completed during the last 5 years in Khutsong South Ext 1, 2 & 3, Kokosi Ext
5, Greenspark, Wedela and Kokosi housing projects, bringing all projects to conclusion.
92
The municipality through Human Settlement projects has emphasised the maximum utilisation of local
contractors and sub-contractors to facilitate local economic development and job creation and a total of 20
local contractors and 30 sub-contractors have benefitted from the project.
A total of 6403 transfer documents have been prepared for the transfer of the properties to the rightful
beneficiaries in Khutsong South Ext 1,3 &4, Greenspark Ext and Blybank
The Gauteng Department of Human Settlements have also indicated that a private mixed human settlement
development is prioritised at Varkenslaagte, next to Welverdiend, to be integrated in the Khutsong
development. This is in line the pillars of Radical Transformation to modernise human settlements in the
Province.
T 3.5.1
Percentage of households with access to basic housing
Year end Total households (including in formal and informal settlements)
Households in formal settlements
Percentage of HHs in formal settlements
2014/2015 68692 52205 76.0%
2015/2016 69044 53559 77.6%
2016/2017 69044 53911 78.1%
2017/2018 70839 55312 78.1%
T 3.5.2
93
Housing Service Policy Objectives Taken From IDP
Service Objectives Outline Service Targets Year 2016/17 Year 2017/18 Year 2018/19
Actual Actual Target
Service Indicators Previous Year Present Year *Following Year
Service Objective xxx
Provision for housing for all households
Human Settlement Management Additional houses provided during the year (Houses required at year end)
352 0 Houses (500 Serviced Stands)
500 Houses 753 Serviced Stands
New Housing Applications Capture New applications captured 1067 868 753
Mixed Housing Projects facilitated Facilitated mixed housing projects 2 7 3
Number of Informal Settlements registered Number of Informal Settlements registered 0 1787 1500
Occupancy rate of community rentals Occupancy rate of community rentals 95% 95% 95%
Number of Tittle Deeds submitted for registration
Number of Tittle Deeds submitted for registration 6189 1289 2211
Facilitation of Social Housing Projects in each restructuring zones as proclaimed
Facilitation of Social Housing Projects in each restructuring zones as proclaimed 0 3 1
T3.5.3
94
Employees: Housing Services
Job Level
2016/2017 2017/2018
Employees Posts Employees Vacancies (fulltime equivalents)
Vacancies (as a % of total posts)
No. No. No. No. %
0 - 3 1 1 1 0 0%
4 - 6 2 3 2 1 33%
7 - 9 8 15 8 6 40%
10 - 12 0 0 0%
13 - 15 1 4 1 3 75%
Total 12 23 12 10 43%
T 3.5.4
Financial Performance 2017/2018 : Housing Services
Details
2016/2017 2017/2018
Actual Original Budget
Adjustment Budget
Actual Variance to Budget
Total Operational Revenue 1242 66223 56754 82983 20%
Expenditure:
Employees 4807 5916 5916 4541 -30%
Repairs and Maintenance 63
Other 926 61538 55772 192 -31951%
Total Operational Expenditure 5796 67454 61688 4733 -1325%
Net Operational Expenditure 4554 1231 4934 -78250 102%
Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual and Original Budget by the Actual. T 3.5.5
95
Capital Expenditure 2017/18 : Housing Services
R' 000
Capital Projects
2017/18
Budget Adjustment Budget
Actual Expenditure
Variance from original budget
Total Project Value
Total All 165260 165260 82018 89% 165983
Khutsong South Ext. 5/6 (500 Services) 25559 25559 25559 0% 26282
Khutsong South Ext. 5/6 (753 Services & 500 Top structure 91201 91201 11725 87% 91201
Mining Town Allocation 48500 48500 44734 7% 48500
T 3.5.6
COMMENT ON THE PERFORMANCE OF THE HOUSING SERVICE OVERALL:
The modernization of Human Settlements and urban development as one of the pillars of radical
transformation is achieved through Merafong’s vision of a fully integrated community with residential, business
and community facilities, as entrenched in the layout of the Khutsong South Human Settlement project and
Kokosi inner-city development.
The Municipality has continued its Housing programme in accordance with the Municipal Housing Plan,
incorporated in the Integrated Development Plan. The Municipality as the developer in the Khutsong South
Extensions Housing project of which the first phase of 5500 top structures and associated infrastructure is
completed. Phase II consisting of 1253 services and 500 top structures are in construction with 500 serviced
stand already completed. The Kokosi Ext 6 housing project is in process which will provide for 2138 top
structures in accordance with the Municipality’s Housing Plan.
The Human Settlement Section in collaboration with sister departments have delivered on its mandate through
various infra-structure related programmes and administrative role that aim to provide the holistic approach to
service delivery. This are in line with the regional outcome 9 related to building special integrated communities
aligned to National and provincial.
The following outputs on provisions of sustainable Human Settlements and property management were
targeted and achieved:
1. New Housing Applications
A total number of 868 applications were captured on the database of Council for the financial year thus
achieving 100% of our targeted goal.
96
2. Human Settlement Projects Co-ordinated
A total of 7 Human Settlement projects were co-ordinated for the financial year namely:
Project No. Project DescriptionFunding
SourceAllocated Funding Progress
P580 Khut Ext 5/6 Internal Water & Sewer Services
(Phase 4) 4.1 & 4.2 (500 Stands)BHS 26 282 000,00 Completed
P580 Khut Ext 5/6 Internal Water & Sewer Services
(Phase 5) (753 Stands)BHS 35 727 500,00 Construction
P575 Khut Ext 5/6 - 500 Top Structures BHS 55 473 500,00 Construction
MINING TOWNS ALLOCATION
P579Design and Construction of Internal Roads &
Stormwater (Kokosi Ext 6)BHS 13 200 000,00 Completed
P570Upgr of Existing Bulk Water Line and Pumpstation
(Kokosi Ext 6)BHS 5 300 000,00 Construction
P573 Electrification of the Township (Kokosi Ext 6) BHS 30 000 000,00 Completed
Kokosi Ext. 6 - 2138 Top Structures BHS Provincial Budget Construction
Totals 165 983 000,00
The targeted beneficiaries for the projects in Khutsong South Ext. 5/6 are the 265 approved beneficiaries of
Khutsong Ext. 3, military veterans, Khayalethu and people on the waiting list (demand data base of Merafong).
Social Housing Project: Elijah Barayi Village
Merafong City Local Municipality in line with the Gauteng Provincial Government is working towards an Urban
Sustainable and Integrated Spatial Reconfiguration of building new cities. The following Mega projects were
evaluated according to three categories:
- Access to transit and connectivity
- Economic opportunities
- Urban integration
This private development through the HAD of mixed housing typologies. The development of this nature will
enhance the character of the Khutsong South area. It’s going to yield 12491 units. It will address the needs of
mostly people who do not qualify for government subsidies and those who want rental accommodation.
97
The project has an economic potential to integrate with Welverdiend, Khutsong South, Deelkraal and
Carletonville Town. The projects sites Township layout plan application has been approved in principle and the
Record of Decision has also been granted. The first phase of the Geo Technical Studies has been completed and
approved and construction has started on the first units.
The image below indicate the locality of the project:
Registration of tittle deeds to eligible beneficiaries lodged for registration
A total number 1289 tittle deeds were registered and received to be handed out to the rightful owners of these
houses.
Human Settlement Plan
The Human Settlement plan was revised and updated to provide the latest information which is used to assist
with planning and obtaining funding for programmes were they are needed.
Facilitation of Social Housing projects restructuring zones
There is 4 zones which were restructured and an advertisement were placed to request proposals from
developers to develop these areas.
T3.5.7
98
3.6 FREE BASIC SERVICES AND INDIGENT SUPPORT
INTRODUCTION TO FREE BASIC SERVICES AND INDIGENT SUPPORT
The municipality is providing a package of free basic services to the 2 074 registered indigents. It is
acknowledged that many poor households are not registered and in this regard the municipality has embarked
on a program to ensure that indigent households register as such. The municipality will also implement an
Indigent after care program in the new financial year to ensure a credible indigent register
The indigent households are provided free basic services in the following:
Water: 6kl monthly
Electricity: 50kw monthly
Refuse: waste removed at least once a week
Sanitation: Free minimum level
T 3.6.1
–
10
20
30
40
50
60
70
80
90
100
Year -3 Year -2 Year -1 Year 0
Ho
use
ho
lds
('00
0)
Free Basic Household Services
Water (6 kilolitres per household per month)
Sanitation (free minimum level service)
Electricity/other energy (50kwh per household per month)
Refuse (removed at least once a week)
Data sourced from MBRR A10
T 3.6.2
99
Financial Performance Year 2017/2018: Cost to Municipality of Free Basic Services Delivered
Services Delivered 2016/2017 2017/2018
Actual Budget Adjustment Budget
Actual Variance to Budget
Water 358 565 565 1376 59%
Waste Water (Sanitation) 1837 1686 1686 1187 -42%
Electricity 2294 1687 1687 1694 0%
Waste Management (Solid Waste) 3559 2817 2817 2119 -33%
Total 8048 6755 6755 6376 -6%
T 3.6.4
Free Basic Services To Low Income Households
Number of households
Total
Households earning less than R1,100 per month
Free Basic Water Free Basic Sanitation
Free Basic Electricity
Free Basic Refuse
Total Access % Access % Access % Access %
2015-2016 3 493 3 493 3 493 100% 3 493 100% 3 493 100% 3 493 100%
2016-2017 3 493 3 493 3 493 100% 3 493 100% 3 493 100% 3 493 100%
2017-2018 2 251 2 251 2 251 100% 2 251 100% 2 251 100% 2 251 100%
T 3.6.3
100
Service Objectives Year 1
Target Actual Actual
Service Indicators *Previous Year *Previous Year *Current Year *Current Year *Current Year *Following Year
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)
Provision of alternative support to low income households
that do not receive all Free Basic Services
No alternative support planned, in case where support is provided,
it would be through external sources eg. Department of Social
Development
T 3.6.5
Service Objective xxx
Free Basic Service Policy Objectives Taken From IDP
Outline Service Targets Year -1 Year 0 Year 3
Target Target
101
COMMENT ON FREE BASIC SERVICES AND INDIGENT SUPPORT:
The Municipality approved the Free Basics Services Policy that came into implementation on the 1st July 2017.
During the year in review 1363 indigent households were registered and are provided with services as provided
in the indigent Policy. A plan will be developed in the new financial year to ensure sustainable support to the
indigent and an efficient after- care programme.
T 3.6.6
COMPONENT B: ROAD TRANSPORT
This component includes: roads; transport; and waste water (stormwater drainage).
INTRODUCTION TO ROAD TRANSPORT
Roads and Stormwater
Since the municipality has got some approved business plans to surface roads, it has embarked on a
programme in a multi -year plan. The municipality is still faced with a huge backlog of unsurfaced roads,
business plans were submitted and some approved for the phased approach implementation. The priorities on
road developments remain on the previously disadvantaged areas, being the townships.
Routine maintenance of roads is being adhered to as per the yearly plan that is developed. It assists in
maintaining the state of roads to be kept at acceptable standards.
T 3.7
3.7 ROADS
INTRODUCTION TO ROADS
The implementation of roads has been set to be executed on each financial year. This will assist in adressing the
current backlog of unsurfaced roads particularly in historically disadvantaged areas. This will go on up until all
areas have been fully addressed. From the capital funding a certain percentage is set aside for the purpose of
clearing backlogs of gravel roads on historically disadvantaged areas. The townships of Kokosi and Greenspark
have been prioritised by the strategy and about 95% of gravel roads have been eliminated. The challenge still
remains with Khutsong township but a plan has been made for the upcuming financial years. Certain housing
projects come with roads network projects attached, therefore assisting the municipality in eliminating the
backlog.
Khutsong township remains the priority of the municipality interms of elimination of gravel roads since other
areas are better off. Grading of roads in areas with unsurfaced roads has been prioritised as means of
maintenance programmes throughout the financial year.
102
THE MUNICIPALITY DOES NOT HAVE A PUBLIC TRANSPORT SERVICE
Civil Engineering Achievements
During the year under review, the municipality has managed to maintain various roads and stormwater
infrastructure. The maintenance Activities as contained in the annual maintenance plan included grading of
roads in townships and informal settlements as well as farming areas that fall within our jurisdiction.
Patching of potholes throughout the municipality was also performed.
New stormwater infrastructure was also installed within roads and stormwater projects implemented through
MIG funding. The townships of Kokosi, Khutsong and Wedela have benefitted in the projects since they all have
backlog of unsurfaced roads. Newly developed Kokosi Ext 6 has also benefited in new roads infrastructure that
was completed this financial year.
Civil Engineering Challenges
Due to the limitation of funds the municipality is struggling to engage on certain maintenance activities. Certain
programmes have been abandoned mostly that relate to long term maintenance of roads and stormwater
infrastructure. Limited funding also affected the filling of vacancies which has left the section with staff
shortage that also impacts negatively on the proper functioning of the service delivery sections.
The surfacing of all existing gravel roads remains a critical need for the municipality, but due to funding
limitations it has been difficult and expensive to maintain roads and stormwater infrastructure.
T 3.7.1
Gravel Road Infrastructure
Kilometers
Total gravel roads
New gravel roads constructed
Gravel roads upgraded to tar
Gravel roads graded/maintained
2015/2016 178 0 3 120
2016/2017 175 0 3 253
2017/2018 175 0 0 126
T 3.7.2
103
Tarred Road Infrastructure
Kilometers
Total tarred roads
New tar roads Existing tar roads re-tarred
Existing tar roads re-sheeted
Tar roads maintained
2015/2016 371 2.5 0 0 2 333
2016/2017 374 3.1 0 0 1
2017/2018 374 0 0 0 0
T 3.7.3
Cost of Construction/Maintenance
R' 000
Gravel Tar
New Gravel - Tar Maintained New Re-worked Maintained
2015/2016 490000 1900000 280000 2300000 1300000 550000
2016/2017
2017/2018 0 0 0 0 0 0
T 3.7.4
0
500000
1000000
1500000
2000000
2500000
Year -2 Year -1 Year 0
Ran
d V
alu
e
Road Infrastructure costs
Gravel New
Gravel - Tar
Gravel - Maintained
Tar - New
Tar Re-worked
Tar Maintained
T3.7.5
104
Road Service Policy Objectives Taken From IDP
Service Objectives Outline Service Targets
Year 2016/2017 Year 2017/2018 Year 2015/2016
Year 3
Target Actual Target Actual Target
Service Indicators *Previous Year
*Previous Year
*Current Year
*Current Year
*Current Year
*Following Year
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)
Service Objective xxx
Elimination of gravel roads in townships
Kilometers of gravel roads tarred (Kilometers of gravel road remaining)
2.5 KM gravel roads tarred (178 KM gravel roads remaining)
3.1 KM gravel roads tarred (174.9 KM gravel roads remaining
2.5 KM gravel roads tarred (178 KM gravel roads remaining)
0 KM gravel roads tarred (174.9 KM gravel roads remaining)
0 KM gravel roads tarred (174.9 KM gravel roads remaining)
Baseline (174.9 KM gravel roads remaining)
5 KM gravel roads tarred (169.9 KM gravel roads remaining)
5 KM gravel roads tarred (169.9 KM Gravel roads remaining)
Development of municipal roads as required
0.59 KM of municipal roads developed 0.59 KM 2.5 KM 2.5 KM 0 KM 0 KM 0 KM 5 KM 5 KM
T 3.7.6
105
Employees: Road Services
Job Level
2016/2017 2017/2018
Employees Posts Employees Vacancies (fulltime equivalents)
Vacancies (as a % of total posts)
No. No. No. No. %
0 - 3 1 1 1 0 0%
4 - 6 2 3 2 1 33%
7 - 9 3 8 5 3 38%
10 - 12 5 15 7 8 53%
13 - 15 13 15 9 6 40%
16 - 18 2 21 11 10 48%
19 - 20 0 30 17 13 43%
Total 26 93 52 41 44%
T3.7.7
Financial Performance Year 2017/2018: Road Services
R'000
Details
2016/2017 2017/2018
Actual Original Budget
Adjustment Budget
Actual Variance to Budget
Total Operational Revenue 82008 Expenditure:
Employees 6795 8440 8440 6996 -21%
Repairs and Maintenance 2167 2700 2700 627 -331%
Other 139840 4 4 0 0
Total Operational Expenditure 148802 11144 11144 7623 -46%
Net Operational Expenditure 66794 11144 11144 7623 -46%
T 3.7.8
106
Capital Expenditure Year 2017/2018: Road Services
R' 000
Capital Projects
2017/2018
Budget Adjustment Budget
Actual Expenditure
Variance from original budget
Total Project Value
Total All 16034 39431 36306 56%
Khutsong Roads and Stormwater (Phase 1) 6100 11762 9113 33% 280
Kokosi Roads and Stormwater (Phase 1) 2600 2985 2985
Wedela Ext 3 Roads and Stormwater (Phase 1) 4600 5800 5614
Construction of Taxi Drop-off zones 2734 2275 2265 -21% 150
Kokosi Ext Construction of Roads 0 3144 3144 100% 320
Design and Construction Internal roads and stormwater Kokosi Ext 6 0 13200 13185
Rehabilitation of Sinkholes 0 265 0 0 90
T 3.7.9
COMMENT ON THE PERFORMANCE OF ROADS OVERALL:
The cost for the construction of stormwater drainage is included in the tenders for the construction of roads
since stormwater drainage is deemed an integral part of road construction. Cost/expenditure for stormwater
drainage is therefore included in the expenditure for roads as per T3.7.9. (PMU)
Roads and Stormwater
The capital roads projects were implemented successfully as planned in Khutsong, Wedela and Kokosi
townships.
Maintenance of existing roads is currently a challenge within the municipality due to the budgetary constraints.
The current financial situation is worsening the backlog of the municipality since we are still faced with backlog
of eliminating the gravel roads.
Khutsong township remains the priority of the municipality in terms of elimination of gravel roads since other
areas are better off. Grading of roads in areas with unsurfaced roads has been prioritised as means of
maintenance programmes throughout the financial year.
T 3.7.10
107
3.8 TRANSPORT (INCLUDING VEHICLE LICENSING & PUBLIC BUS OPERATION)
INTRODUCTION TO TRANSPORT (VEHICLE REGISTRATION AND LICENSING)
This component includes Motor Vehicle Registration Authority (MVRA), Vehicle Testing Centre (VTS) as well as
Driving License Testing Centre (DLTC). It includes issuing of vehicle permits, road worthiness of vehicles and
application for learners, drivers and professional driving permits in line with the National Road Traffic Act 93 of
1996. In addition, the South African Post of Services is mandated to do renewal of motor vehicle licensing. As a
result, this reduced the number of renewals of motor vehicle licensing at the municipality. In addition, learner
license test is computerized and the failing rate is high.
South African Post Office is registered as an agent to renew motor vehicle licenses. In addition, legislation
authorized a person to renew a motor vehicle license at any local authority within Gauteng Province with a
renewal notice.
No bus services in Merafong
T 3.8.1
Municipal Bus Service Data
Details
2015/2016 2016/2017 2017/2018
Actual No. Estimate No.
Actual No.
Estimate No.
1 Passenger journeys 2 Seats available for all journeys The Municipality does not have bus services.
3 Average Unused Bus Capacity for all journeys
4 Size of bus fleet at year end
5 Average number of Buses off the road at any one time
6 Proportion of the fleet off road at any one time
7 No. of Bus journeys scheduled
8 No. of journeys cancelled
9 Proportion of journeys cancelled
T 3.8.2
Merafong Local Municipality has no municipal bus service in its territory. Commuters use minibuses and midi-
buses as a mode of public passenger road transport.
T 3.8.2.1
108
Transport Service Policy Objectives Taken From IDP (VEHICLE LICENSING)
Service Objectives Outline Service Targets
2014/2015 2015/2016 2016/2017 2017/2018
Target Actual Target Actual Target
Service Indicators *Previous Year
*Previous Year
*Current Year
*Current Year
*Current Year
*Following Year
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)
Service Objective xxx
Registration of vehicles Registration of vehicles
8217
9900
8217
9646
9646
9865
9938
9712
Licensing motor vehicles 42750 43121 34363
Drivers licenses 19286 18711 18693
Learners licenses 3670 3240 4141
T 3.8.3
109
Employees: Transport Services (Vehicle Licensing)
Job Level
2016/2017 2017/2018
Employees Posts Employees Vacancies (fulltime equivalents)
Vacancies (as a % of total posts)
No. No. No. No. %
0 - 3 0 1 0 1 100%
4 - 6 3 4 3 1 25%
7 - 9 13 3 12 3 100%
10 - 12 18 7 18 7 100%
13 - 15 7 6 7 6 100%
16 - 18 6 4 5 4 100%
Total 47 25 45 22 88%
T3.8.4
Year 2016/2017
Actual Original Budget Adjustment
Budget
Actual Variance to
Budget
Total Operational Revenue 0%
Expenditure:
Employees 0%
Repairs and Maintenance Council does not have transport services as a separate entity 0%
Other 0%
Total Operational Expenditure 0%
Net Operational Expenditure 0%
T 3.8.5
Financial Performance Year 2017/2018: Traffic and Licensing Services
R'000
Details
Year 2017/2018
Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the
Actual and Original Budget by the Actual.
Budget Adjustment
Budget
Actual
Expenditure
Variance from
original
budget
Total Project
Value
Total All 260 326 378 31%
Project A 100 130 128 22% 280
Project B 80 91 90 11% 150
Project C 45 50 80 44% 320
Project D 35 55 80 56% 90
T 3.8.6
Capital Expenditure Year 0: Transport Services
R' 000
Capital Projects
Year 0
Total project value represents the estimated cost of the project on approval by council (including past
and future expenditure as appropriate.
110
COMMENT ON THE PERFORMANCE OF VEHICLE LICENSING OVERALL:
The Registration and licensing section signed a Service Level Agreement with the Gauteng Department of
Transport to do registration and licensing of motor vehicles, learner license and driver licenses. The South
African Post Office is also registered as an agent to renew motor vehicle licenses. As a result, this reduced the
number of renewals of motor vehicle licenses. The National Road Traffic Act. 93/1996 authorized a person to
renew a motor vehicle license at any local authority within Gauteng Province with a renewal notice.
This section is responsible for the testing of learners and drivers licenses as well as testing of vehicles in terms
of legislation. The learner license test is recently computerized and the failing rate is high due to the fact that
applicants are not familiar with the system.
The project was registered for the building of the New Driver License offices in Carletonville. The building is at
90% completion. Definitely this will improve on service delivery and compliance to the best practice model.
T 3.8.7
3.9 WASTE WATER (STORMWATER DRAINAGE)
INTRODUCTION TO STORMWATER DRAINAGE
Through the MIG funding initiatives the municipality has managed to install stormwater infrastructure in areas
that were having a challenge before. Those areas include Kokosi township, where the network never existed
before. In Wedela and Khutsong the challenge is being addressed continuously within the roads projects. The
maintenance plan that was drafted for the year under review was partially adhered to in addresing some of the
problems although the plan itself had to be downscaled due to financial constraints. There are areas that still
have the need to upgrade the stormwater system through maintenance progeramme, but have been kept on
halt due to budgetary constraints.
T 3.9.1
111
Stormwater Infrastructure
Kilometers
Total Stormwater measures
New stormwater measures
Stormwater measures upgraded
Stormwater measures maintained
2015/2016 No baseline 3 22 m Kerb upgraded (replaced and repaired)
329 units kerb inlets maintained and 450 m channels cleaned
2016/2017 No Baseline 1.8 58 units kern inlets cleaned and repaired
58 units kerb inlets repaired and cleaned and 1.2 km channels cleaned.
2017/2018 No Baseline 0 400 units kerb-inlets cleaned and repaired
400 units kerb-inlets cleaned and repaired and 5644 meters channels cleaned.
T 3.9.2
Cost of Construction/Maintenance
R' 000
Stormwater Measures
New Upgraded Maintained
201516 1 800 000 700 000 330 000
201617 1 900 000 900 000 420 000
201718 2 700 000 0 627 000
T 3.9.3
112
T 3.9.4
113
Stormwater Policy Objectives Taken From IDP
Service Objectives Outline Service Targets
2016/2017 2017/2018 2018/2019 2019/2020
Target Actual Target Actual Target
Service Indicators *Previous Year
*Previous Year *Current Year
*Current Year
*Current Year
*Following Year
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)
Service Objective xxx
Development of fully
integrated stormwater
management systems
including wetlands
and natural water
courses
Phasing in of
systems
Strategy
approval
(Yes/No);
Timescale
x yrs
Strategy
approval
(Yes/No);
Timescale
x yrs
Strategy
approval
(Yes/No);
Timescale
x yrs
Strategy approval
(Yes/No);
Timescale x yrs
Strategy
approval
(Yes/No);
Timescale x yrs
Strategy
approval
(Yes/No); x
yrs
remaining
Completion
(Yes/No); x
yrs
remaining
Completion
(Yes/No); x
yrs
remaining
Cleaning of
Stormwater
Channels
632 1190 3400 5644
Repair and
cleaning of
kerb inlets
182 58 325 400
T 3.9.5
114
Employees: Stormwater Services
Job Level
2016/2017 2017/2018
Employees Posts Employees Vacancies (fulltime equivalents)
Vacancies (as a % of total posts)
No. No. No. No. %
0 - 3 1 1 1 0 0%
4 - 6 2 3 2 1 33%
7 - 9 3 8 5 3 38%
10 - 12 5 15 7 8 53%
13 - 15 13 15 9 6 40%
16 - 18 2 21 11 10 48%
19 - 20 30 17 13 43%
Total 26 93 52 41 44%
T 3.9.6
Financial Performance Year 2017/2018: Stormwater Services
R'000
Details
2016/2017 2017/2018
Actual Original Budget
Adjustment Budget
Actual Variance to Budget
Total Operational Revenue
Expenditure:
Employees
Repairs and Maintenance Expenditure included in Roads Services
Other
Total Operational Expenditure
Net Operational Expenditure
Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual and Original Budget by the Actual. T 3.9.7
Capital Expenditure Year 2017/2018: Stormwater Services
R' 000
Capital Projects
Year 2017/2018
Budget Adjustment Budget
Actual Expenditure
Variance from original budget
Total Project Value
Total All
Expenditure of stormwater included in Roads Services
T 3.9.8
115
COMMENT ON THE PERFORMANCE OF STORMWATER DRAINAGE OVERALL:
PLEASE NOTE THAT THE COMMENTS / INPUT OFFERED BELOW DOES NOT PRECLUDE THE ROADS &
STORMWATER SECTION FROM EXPANDING, AMENDING, CHANGING OR EVEN THE DELETION OF THE PMU’S
INPUT!!!
Khutsong Roads & Stormwater (Phase 1)
Project was scheduled for completion by November 2016, but the contractor ran into financial difficulties and
the project got consequently delayed. Several notices were served on the contractor to expedite the
completion of the Works, which prompted construction activities to recommence but in each case was not
sustained for very long. Persistent non-performance of the contractor of necessity resulted in the termination
of the contract, but at year end a substitute contractor still remained to be appointed which will necessitate for
the project to be rolled over into the 2017/18 FY. The consultant was appointed on the 04/09/2017 on a turn-
key basis to complete the project in the 2017/18 FY and finally the project was successfully completed.
Khutsong Roads & Stormwater (Phase 2)
Project was originally planned to start in January 2017, but the Consultant experienced delays in obtaining
results from geotechnical investigations critical to the design, hence the finalisation of the tender documents
was commensurately delayed. Tender closed on 3/02/2017, but due to the BEC not recommending the tender
award to the highest scoring bidder, the matter was referred to National Treasury. Treasury declined to
approve of the bidder not scoring the highest, resulting therein that with all the delays in finally awarding the
contract, the contractor could only be appointed on 30/06/2017 and the project therefore could not incur any
progress expenditure. Project beyond scheduled completion date due to delays encountered early in the
project (Consultant absconded)
The construction commenced in the 2017/2018 and Practical completion was achieved on the 30 June 2018.
Kokosi Roads & Stormwater (Phase 2)
Project progressed very well and it was initially expected for the project to be completed in June 2017.
Community protests however delayed completion and the high project expenditure associated with the
surfacing of the roads could therefore not be incurred, necessitating for the project to be rolled over to the
2017/18 financial year and practical completion was reached on 28 October 2017.
Wedela Ext 3 Roads and Stormwater ( Phase 2)
Project originally planned for completion by February 2018. Delayed procurement in the absence of an
approved Consultant's panel caused project to start late, with project start further delayed by community
protests. Project was planned to start 2017/18 financial year and the contractor was on site on the 06 February
2018 and practical completion was achieved on the 28 June 2018
Construction of Taxi drop-off zones Phase 2
Project originally planned for completion by April 2018. Delayed procurement in the absence of an approved
Consultant's panel caused project to start late. Delays was encountered when Gautrans had to give approval for
wayleaves. The contractor was on site on the 06 February 2018 and practical completion was achieved on the
28 June 2018
116
Kokosi Ext 6 Construction of Roads
There was no project targets set in the SDBIP FOR 2017/2018. The project handover was done on 15 January
2018 with a construction period of 5 months. The contractor has reached practical completion on 30 June 2018.
Design and Construction of Internal Roads & Stormwater ( Kokosi Ext 6)
The allocated funding of R 5 567 500.00 from MIG was utilized on the construction of roads in conjunction with
the funding received from the Mining Towns Allocation for the Kokosi Ext 6 Construction of Roads.
Roads and Stormwater
The overall performance of stormwater system has been affected by lack of maintenance due to budgetary
constraints which necessitates the filling of vacant positions. The introduction of NYS team has assisted where
there is a need of manpower to execute maintenance activities that do not require financial implications.
During the year under review, new stormwater infrastructure was installed in townships of Khutsong and
Kokosi through the MIG funding projects. The master plan that is currently underway for implementation will
also assist in addressing the long term maintenance plan issues. Some stormwater drainage systems have to be
concrete aligned to ease the maintenance levels. The compilation of the master plan is pending funding
availability.
T3.9.9
COMPONENT C: PLANNING AND DEVELOPMENT
This component includes: planning; and local economic development.
INTRODUCTION TO PLANNING AND DEVELOPMENT
The key objective to achieve integrated planning, optimal connectivity, liveable sustainable human settlements,
and growth and green smart developments, is entrenched in the Spatial Development Framework. The SDF was
reviewed to be aligned with the Gauteng City Region and Corridor Development Initiative and to incorporate
the Capital Expenditure Framework.
The Spatial Development Framework recognizes economic opportunities and guides new development
opportunities to be strategically placed to achieve sustainable integrated planning and capital investment.
The municipality is committed to facilitate Radical Economic Transformation and to diversify the economy from
the dominant mining sector. In this regard several catalytic projects have been identified that can change the
face of Merafong City and the West Rand if investment can be attracted.
In the previous years it was reported that business plans were submitted to the Gauteng Funding Agency to
facilitate Radical Economic Transformation within the West Rand, but to date no funding were received for the
following projects:
● Carletonville Multi Nodal Transport Hub
● Khutsong South Extensions Taxi Rank
117
● Kokosi Precinct Upgrade
● Kokosi Social Development Cluster
● Fochville- Kokosi Regional Park
The Gauteng Infrastructure Funding Agency approved the following two projects for detailed feasibility studies
up to business case implementation stage. The feasibility studies were scheduled for completion by the end of
the financial year, but due to a few challenges, the two projects are only expected to be concluded by
September 2018:
● Merafong Bioenergy Eco-Industrial Park
● Merafong Solar Farm Cluster
These two projects have the potential to establish Merafong City and the West Rand as the leader in green
energy in the West Rand and Gauteng.
The modernisation of Human Settlements and urban development as one of the pillars for radical
transformation is achieved through fully integrated township layouts for residential, business and community
facilities for the following approved Mega Projects:
● Khutsong South Mega Human Settlement Projects (next phases)
● Elijah Barayi Village Mega Project
● Kokosi Extension 6 and 7
The next phase of the Khutsong South Mega Human Settlement Project has also been approved by the Gauteng
Department of Human Settlement which will be a further catalytic project to attract investment and to fully
develop the Carletonville-Khutsong-Welverdiend Corridor.
The attraction and implementation of Mega projects is dependent on the availability of bulk services pertaining
to water, sewer and electricity. The Municipality also has a challenge of aging infrastructure that urgently
needs rehabilitation. This situation has further been compounded by the recent loss of bulk infrastructure such
as reservoirs and bulk pipelines, due to sinkhole formation in the northern conurbation. This has a potential
impact on the development of Mega projects in the northern conurbation.
The access to suitable land for mega project developments remains a challenge. In this regard land has been
identified where land availability agreements will have to be concluded to ensure access to strategically located
land for development. Mining Houses and the Far West Rand Dolomitic Water Association (FWRDWA) are
engaged through different forums to unlock strategic land parcels. The FWRDWA committed to avail strategic
land parcels for mega project development.
The Municipality is confident that its Strategic Planning Framework provides a solid foundation to attract
investment for mega projects to facilitate growth and development in Merafong City, as part of the Gauteng
City Regions’ Western Corridor Development.
T 3.10
118
3.10 PLANNING
INTRODUCTION TO PLANNING
Spatial Planning in Merafong City is guided by the Spatial Development Framework and the strategies outlined
in the Planning Framework to ensure the following:
● Improve Urban Efficiency and rectify spatial disparities
● Improve urban and rural living environment
● Facilitate sustainable economic growth and diversification
● Protect natural and agricultural resources
Improve Urban Efficiency and rectify spatial disparities
In order to achieve integrated urban areas and restructure the urban form to meet current and future efficiency
challenges, the following were achieved:
● Improvements were made to the Municipal Spatial Development Framework, with special reference to
new growth management zones to guide development in accordance with the future desired state, and to
incorporate the Capital Expenditure Framework, although with limited information.
● The Municipality has received funding from GDRDLR for the compilation of a new uniform Land Use
Scheme for the entire Merafong City. The service provider was appointed in February 2018, and it is
expected that the project will be concluded in December 2018.
● Continuation of the implementation of existing and new Mega Human Settlement projects in order to
recti spatial disparities.
The main challenges experienced in this regard were related to funding constraints for the rehabilitation and
construction of bulk infrastructure which caused a delay in the implementation of Human Settlement and
development projects. Human Settlements is however a Provincial function and therefore the municipality is
dependent on budget allocations from the National- and Provincial Annual Budget Allocations.
Improve urban and rural living environment
In order to create a conducive living environment for the community where basic needs are met, the cost of
living is bearable, amenities and employment are accessible and urban spaces are aesthetically pleasing and
healthy, the following was achieved:
● The MSDF identified land for economic development interventions in previously disadvantaged areas to
enable the implementation of economic development projects.
● Non-Motorized Transport priorities and needs were identified and communicated to Gauteng Province as
part of the Gauteng Renewed Focus on Non-Motorized Transport.
● Land was identified in previously disadvantaged areas for alienation for churches, businesses, residential
development and NPO’s, in order to support a better functioning social environment.
● Land was identified and availed for social infrastructure development in various areas comprising of clinics
and libraries.
119
The main challenges experienced in this regard stem from the presence of dolomite which greatly reduces
viable options for locating facilities in the process of creating improved living environments.
Facilitate sustainable economic growth and diversification
In order to facilitate the development of new economic drivers and the diversification of the economy and to
revitalize stagnant economic activity nodes the following was achieved:
● Great strides were made with the conceptualization, project development and funding of Merafong City’s
game changer projects. The Gauteng Infrastructure Financing Agency (GIFA) has agreed to fund the
feasibility studies for the Bio-energy Eco-Industrial Park and Solar farm cluster projects which will re-
organize the space economy and place Merafong on a sustainable path of growth. Although it was
expected that the feasibility studies would be completed by June 2018, due to certain delays in the
projects, the expected completion date is now September 2018.
● After extensive research the designated nodes and corridors in the MSDF were re-aligned in order to yield
higher growth results in the urban space.
The main challenges experienced in this regard were the ever present shortage of funding as well as
strategically located land for projects. These challenges are however being addressed through co-operation
with the local Mining Houses and Gauteng Province.
Protect natural and agricultural resources
In order to protect and actively manage the natural environmental resources of Merafong City to ensure a
sustainable co-existence between urban, mining, agricultural and ecological land uses, the following was
achieved:
● The MSDF was aligned to the new Gauteng Environmental Management Framework. Climate change
mitigation measures were improved through the designation of new protected critical diversity areas. The
renewed focus was placed on the inter-relation between spatial planning and conservation of wetlands by
a new partnership between ICLEI, the WRDM and Merafong City.
● The Spatial Planning Section actively attracted interest for green investment that aims to rehabilitate mine
impacted land and generate renewable green energy. The envisaged development will for a component of
the Bio-energy Eco-Industrial Park which will bring about a reduction in carbon emissions noticeable on a
regional scale.
Funding is once again the main challenge in implementing environmental orientated projects within a context
of limited resources and competing social and economic needs.
Service delivery priorities pertaining to Land Use Management, Spatial Planning and Building Control were
addressed in accordance with the Service Delivery Budget Implementation Plan (SDBIP) of Council.
120
The main services delivery priority pertaining to land use management was the implementation of the Spatial
Planning & Land Use Management Act (SPLUMA) (Act 16 of 2013) which came into operation on 1 July 2015.
The main intention of SPLUMA is to streamline Spatial Planning and Land Use Management and to promote a
uniform system of spatial planning and land use management. Funding was received from GDRDLR for the
compilation of a new uniform Land Use Scheme for the entire Merafong City. The service provider was
appointed in February 2018, and it is expected that the project will be concluded in December 2018.
The categorization of applications, the delegation of certain powers to the Designated Officer and the adoption
of SPLUMA By-Laws has improved performance and efficiency within the Department. The SPLUM By-Laws was
promulgated on 14 September 2016. In comparison to the previous year, there were a definite decline in
applications submitted, and a total of 36 development applications have successfully been processed.
The increasing number of illegal land uses identified during the year is a serious concern. A tendency has been
noted that illegal back rooms are constructed and rented out, some of an informal nature, impacting negatively
on services such as sewer, electricity and the living environment. In this regard a total of 141 illegal land uses
and illegal buildings have been identified, investigated and statutory processes implemented.
Within the Building Control Section a concerted effort was made to improve the timeframe for processing
building plans. As was seen with the land use applications, there were also a significant decline in the
submission of building plans, in comparison to the previous years. During this year a total of 157 building plans
have been approved within the legislated timeframe, resulting in no backlog on approval of building plans. The
general economic decline in the industry are revealed as the total value of building plans approved for the
financial year, has propped with almost 50%, at a total value of R161,717,750.
T 3.10.1
Applications for Land Use Development
Detail Formalisation of Townships Rezoning Built Environment
2016/2017 2017/2018 2016/2017 2017/2018 2016/2017 2017/2018
Planning application received 1 1 55 8 262 157
Determination made in year of receipt 1 1 50 4 262 157
Determination made in following year 0 0 0 4 0 0
Applications withdrawn 0 0 0 1 0 0
Applications outstanding at year end 0 0 5 4 0 0
T 3.10.2
121
Planning Policy Objectives Taken From IDP
Service Objectives Outline Service Targets 2016/2017 2017/2018 2018/2019 2020/2021
Target Actual Target Actual Target
Service Indicators (i)
*Previous Year
*Previous Year
*Current Year
*Current Year
*Current Year
*Following Year
(ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)
Land Use Management
% statutory notices issued within 7 days of identification of Illegal Land use 100% 100% 100% 100% 100% 100% 100% 100%
Spatial Planning Reviewed SDF 1 1 1 1 1 1 1 1
Reviewed SDF: Implementation of Process Plan N/A N/A N/A 100% 100% 100% 100% 100%
SPLUMA By-Laws 1 promulgated N/A N/A N/A N/A N/A
SPLUMA system of delegations 1 1 1 N/A N/A N/A N/A N/A
SPLUMA - no of applications submitted vs approved N/A N/A N/A 100% 100% 100% 100% 100%
Economic Development
% of developmental municipal owned land advertised for development in accordance with 5 year plan N/A N/A N/A 100% 100% 100% 100% 100%
Building Control Building plans <500m² attended within 30 days 100% 100% 100% 100% 100% 100% 100% 100%
Building plans >500m² attended within 60 days 100% 100% 100% 100% 100% 100% 100% 100%
% building inspections conducted vs applied for 100% 100% 100% 100% 100% 100% 100% 100%
% statutory notices issued within 14 days of identification of Illegal building 100% 100% 100% 100% 100% 100% 100% 100%
T 3.10.3
122
Employees: Planning Services
Job Level
2016/2017 2017/2018
Employees Posts Employees Vacancies (fulltime equivalents)
Vacancies (as a % of total posts)
No. No. No. No. %
0 - 3 1 1 1 0 0%
4 - 6 11 18 11 7 39%
7 - 9 4 11 2 9 82%
Total 16 30 14 16 53%
T 3.10.4
Financial Performance Year 2017/2018: Planning Services
R'000
Details
2016/2017 2017/2018
Actual Original Budget
Adjustment Budget
Actual Variance to Budget
Total Operational Revenue 780 1075 1075 824 -30%
Expenditure:
Employees 8135 9121 9121 8629 -6%
Repairs and Maintenance 0
Other 330 550 550 193 -185%
Total Operational Expenditure 8465 9671 9671 8822 -10%
Net Operational Expenditure 7685 8596 8596 7998 -7%
T 3.10.5
Capital Expenditure Year 2017/2018: Planning Services
R' 000
Capital Projects
2017/2018
Budget Adjustment Budget
Actual Expenditure
Variance from original budget
Total Project Value
Total All 0 0 0 0%
no Capital projects 0 0 0 0%
T 3.10.6
123
COMMENT ON THE PERFORMANCE OF PHYSICAL PLANNING OVERALL:
The Spatial Planning and Environmental Management Section did not have any Capital project for the year
under review. As far as the Operating Expenditure is concerned, the section successfully implemented its SDBIP
and achieved 97% expenditure of the approved budget.
T 3.10.7
3.11 LOCAL ECONOMIC DEVELOPMENT (INCLUDING TOURISM AND MARKET PLACES)
INTRODUCTION TO ECONOMIC DEVLOPMENT
The Merafong Growth and Development Strategy (GDS), remains in place as a long-term development vision.
The Merafong GDS has the following 5 development thrusts:
Thrust 1 - Development of Agricultural Sector
Thrust 2 - Industrial beneficiation development
Thrust 3 - Infrastructure development
Thrust 4 - Local business development
Thrust 5 - Human resource development and empowerment
Development of Agricultural Sector
The municipality supported small scale farmers through various projects and programmes as part of
Agricultural Development. Over the last year the municipality assisted various schools, clinics, community based
organizations and non-governmental organizations as part of its food security programme. A total of 34
community gardens were supported with seeds, for the winter cycle.
There are currently twenty-two small scale farmers on the Nooitgedacht Commonage Farm with a total of 197
cattle and 66 calves.
The Wedela Agricultural project continues under a cooperative with 15 members. All 4 tunnels are under
production and the open field has been planted and irrigation infrastructure has been installed. Training to
beneficiaries is an ongoing process.
Continued inter-governmental relationships with GDARD, Department of Land and Rural Development,
Department of Forestry and Fisheries, National Development Agency and the Agricultural Research Council are
in place to facilitate agricultural development in Merafong City.
124
The challenge to access land for small scale farmers is still a major concern. Most of the agricultural land in
municipal jurisdiction belongs to the Far West Rand Dolomitic Water Association and the mines. The
municipality has engaged the mines over many years to facilitate access to unproductive land for small scale
farmers but has not been successful to date. This matter is high on the agenda of Government and the West
Rand Mining Forum. The municipality will continue engagements with the mines in this regard.
The outcome of the funding application of the establishment of a commonage farm at the Khutsong 18 plots
(Erf 1 Khutsong), to provide access to land for small scale farmers is awaited from GDARD.
Industrial and Business Development
There are 6 business and industrial hives in the municipality, giving access to 134 trading units for our local
SMMEs in the following areas:
Kokosi Bee-Hive - 19 units
Khutsong South Industrial Hive - 23 units
Khutsong Business Centre - 22 units
Concor Hostel - 12 units
Greenspark Industrial Hive - 6 units
Carletonville Informal Trading Area - 52 units
This initiative created an enabling environment for SMMEs and contributed to job creation. During the year an
average of 5 157 jobs were created by these small businesses
The contract of the contractor at the Oberholzer Informal Trading Area Phase II was terminated on 21
November 2016 due to non-performance. Currently awaiting the outcome of a settlement agreement.
The Khutsong Business Centre was completed and the snag list was addressed by the Gauteng Department of
Economic Development. Building not handed over to the municipality yet due to some infrastructure
challenges experienced at the site.
The Enterprise Development Centre in collaboration with Anglo Gold Ashanti to support the local SMME’s
pertaining to a broad spectrum of functions is fully operational to assist SMME’s as a one stop centre.
Jobs created through Infrastructure development
During the current financial a total of 741 jobs were created through Infrastructure development initiatives. It
is the policy of the municipality to ensure that local communities benefit from infrastructure development
projects. In this regard 400 local construction companies registered on the housing database to participate in
projects, mainly in the construction sector. It is a policy requirement that at least 30% of large projects be
subcontracted to local SMMEs. A challenge is however experienced where procurement of service providers on
Provincial projects are being done at Provincial level. It is therefore important to ensure that our local
companies are registered on the Provincial database.
T 3.11.1
125
Economic Activity by Sector
R '000
Sector Year 2014/2015 Year 2015/2016 Year 2016/2017
Agric, forestry and fishing 158 160 246
Mining and quarrying 5145 4608 8951
Manufacturing 385 384 6398
Wholesale and retail trade 1839 1875 3383
Finance, property, etc. 1600 1605 4245
Govt, community and social services 964 327 3506
Infrastructure services 252 316 3998
Total 10343 9275 30727
* Quantec 2017 T 3.11.2
Economic Employment by Sector
Jobs
Sector Year 2014/2015 Year 2015/2016 Year 2016/2017
No. No. No.
Agric, forestry and fishing 1 273 1 185 2 228
Mining and quarrying 29 967 28 272 25 570
Manufacturing 1 873 1 742 7 259
Wholesale and retail trade 12 930 12 613 20 741
Finance, property, etc. 4 088 3 955 14 503
Govt, community and social services 17 294 17 579 19 735
Infrastructure services 2 977 2 947 10 579
Total 70402 68293 100 615
* Quantec 2017 T 3.11.3
COMMENT ON LOCAL JOB OPPORTUNITIES:
Although mining has shown a declining trend relative to its share in 2006, the mining sector remains the largest
contributor to the municipality’s GDP. Conversely, all the other sectors have been growing, with the greatest
increases reported in the manufacturing sector and finance and business division.
In 2016, the economy of the MCLM was valued at R30 761 million. The local municipality had a contribution of
22.2% to the district’s gross domestic product per region (GDP-R) and 1.4% to the Gauteng’s Province’s GDP-R.
The economy of Merafong city is still dominated by the mining sector, which contributed 54.9% to GDP in 2011
and 29.1 in 2016. Although the mining sector is still dominant in the economy of Merafong City, there has been
a decline in both production and its contribution to GDP. The Manufacturing contributed 14.1 in 2011 and grew
to 20.8 in 2016, Finance and Business Services grew from 7.1 in 2011 to 13.8 in 2016, Transport improved from
3.8 to 5.9 are also important contributors to the GDP of Merafong.
126
The main employers in the MCLM are the mining sector, followed by the trade industry. About one in every
four (25.4%) of the employed persons rely on mining activities. Despite mining being the largest employer, an
alarming picture is depicted by the employment trends. In 2016, the mining sector employed approximately 13
000 people less compared to the number of people employed in 2006.
The performance of the mining industry was hugely affected by the global economic downturn, accompanied
by fluctuating commodity prices and exchanges rates (Merafong LM, 2014), among other factors. This, in turn,
affected the profit margins and returns in mining, which led to further job losses as mines started to downscale
and shut down. Noteworthy is that the decline in the number of people employed in the mining sector was
offset by a growth in employment in trading related activities, finance and business amenities and community
services provision.
*Quantec 2017 T 3.11.4
Jobs Created during Year 2017/2018 by LED Initiatives (Excluding EPWP projects)
Total Jobs created / Top 3 initiatives
Jobs created Jobs lost/displaced by other initiatives
Net total jobs created in year
Method of validating jobs created/lost
No. No. No.
Total (all initiatives)
Year 2015/2016 6320 6320 Monthly reports
Year 2016/2017 6298 6298 Monthly reports
Year 2017/2018 5157 5157 Monthly reports
T 3.11.5
Job creation through EPWP* projects
Details
EPWP Projects Jobs created through EPWP projects
No. No.
Year 2015/2016 12 441
Year 2016/2017 6 480
Year 2017/2018 25 427
*Extended Public Works Programme T 3.11.6
127
Local Economic Development Policy Objectives Taken From IDP
Service Objectives Outline Service Targets Year 2016/2017 Year 2017/2018 Year 2018/2019
Target Actual Target Actual Target
Service Indicators
Service Objective xxx
Local Economic Development Jobs created through LED initiatives 6000 6298 6000 5157 6000
LED Programmes implemented as planned
100% 100% 100% 100% 100%
Business Licence applications processed within 30 days of receipt
100% 100% 100% 100% 100%
T 3.11.7
128
Employees: Local Economic Development Services
Job Level
Year 2016/2017 Year 2017/2018
Employees Posts Employees Vacancies (fulltime equivalents)
Vacancies (as a % of total posts)
No. No. No. No. %
0 - 3 0 1 0 1 100%
4 - 6 1 4 1 3 75%
7 - 9 2 3 2 1 33%
Total 3 8 3 5 63%
T 3.11.8
Financial Performance Year 2017/2018: Local Economic Development Services
R'000
Details
2016/2017 2017/2018
Actual Original Budget
Adjustment Budget
Actual Variance to Budget
Total Operational Revenue 11 8 8 9 9%
Expenditure:
Employees 1415 2288 2288 1109 -106%
Repairs and Maintenance 0 100 100 0
Other 201 263 263 166 -58%
Total Operational Expenditure 1616 2651 2651 1275 -108%
Net Operational Expenditure 1605 2643 2643 1266 -109%
T 3.11.9
Capital Expenditure Year 2017/2018: Economic Development Services
R' 000
Capital Projects
Year 2017/2018
Budget Adjustment Budget
Actual Expenditure
Variance from original budget
Total Project Value
Total All 3673 0 0 0%
Informal Trading Area Phase 2 (Oberholzer)
3673 0 0 0% 0
T 3.11.10
129
COMMENT ON LOCAL ECONOMIC DEVELOPMENT PERFORMANCE OVERALL:
Informal Trading Area Carletonville Phase 2
Project was planned for completion by November 2016. Persistent non-performance of the contractor resulted
in the termination of the contract. The contractor contested the termination and the continuation of the
project therefore had to be suspended pending the outcome of the court case. Targets were planned for in
2017/18 SDBIP but still remains unattended to as the end of 2017/18 financial year since the matter still
remains to be resolved pending a court date to be set.
T 3.11.11
COMPONENT D: COMMUNITY & SOCIAL SERVICES
This component includes: libraries and archives; museums arts and galleries; community halls; cemeteries and
crematoria; child care; aged care; social programmes, theatres.
INTRODUCTION TO COMMUNITY AND SOCIAL SERVICES
Delete Directive note once comment is completed – Provide brief introductory comments. Refer to support
given to those communities that are living in poverty.
T 3.12
3.12 LIBRARIES; ARCHIEVES; MUSEUMS; GALLERIES; COMMUNITY FACILITIES; OTHER
(THEATRES, ZOOS, ETC)
INTRODUCTION TO LIBRARIES; ARCHIEVES; MUSEUMS; GALLERIES; COMMUNITY FACILITIES
Community Facilities
In Merafong City Local Municipality, Community Facilities are as follows: Khutsong Community hall, Fochville
Civic centre & Chamber, Greenspark Community hall, Molatlhegi Community hall, Wedela Main hall,
Carletonville Lapa, Carletonville Civic centre and Carletonville Sports Complex.
These Facilities are frequently used by members of the community and the private sector for events such as
workshops and training, presentations, seminars, conferences, funerals, music concerts, theatre comedy
performances, parties, wedding etc. They are also used for council purposes.
130
The primary priority of the Section is to ensure proper functioning and maintenance of all Community Facilities.
With cost control measures put in place, this has proved rather challenging, however the Section has worked
hand – in – hand with relevant internal sections to ensure that facilities are satisfactorily kept were possible.
Access to these facilities is controlled through bookings and a certain tariff is paid for utilisation. These tariffs
are reviewed annually though the budget processes.
The Sections has assisted previously disadvantaged members of the community and stakeholders by approving
and offering free usage of facilities, which is obtained through internal applications.
Community Libraries
Merafong City Local Municipality is rendering Library Services on an agency basis for Gauteng Province guided
by a Service Level Agreement .Grant funding to the value of R15 498 000 was received during the year in
review. Services are currently rendered in 21 areas.
T 3.12.1
SERVICE STATISTICS FOR LIBRARIES, ARCHIVES, COMMUNITY FACILITIES AND OTHER (THEATRES, ZOOS, ETC)
Libraries
Month
Membership 2017/2018 In House Use (Number of _____ ) 2017/2018
Children Adult Total Reference
Users Student Learners
Newspapers/Magazines
ICT (Computer) Users
Total
July 17 5491 6031 11522 15085 23440 9378 5097 53009
August 17 6275 7334 13609 16887 26503 9198 7918 60506
Sept 17 5671 7291 12962 18928 26611 7214 7190 59943
October 17 5722 7269 12991 24698 42275 8766 8608 84347
Nov2017 5813 7341 13154 20220 50725 8736 9446 89127
Dec 17 5836 7331 13167 8957 38967 3185 10823 72463
January 18 5925 7461 13386 14589 39781 7270 6603 57778
February 18 6078 7260 13338 14939 45822 9412 9462 79635
March18 5933 7924 13857 17684 48807 7446 10764 84701
April 18 6108 7855 13963 16491 49066 9454 12515 87526
May18 6349 7940 14289 17525 56676 9314 13517 97032
June18 6119 7936 14055 15750 40357 8182 14040 78329
Total 17/18 71320 88973 160293 201753 489030 97555 117945 748610
T3.13.2
131
Community Facilities
Name of Facility Number of Community facilities
2016/2017 Bookings 2017/18 Bookings
Khutsong Community Hall 1 82 168
Fochville Civic Centre and Lapa
2 10 87
Greenspark Community 1 15 59
Molatlhegi Community Hall 1 20 96
Wedela Main Hall and Chamber
1 144 224
Carletonville Lapa 1 37 96
Carletonville Civic Centre 3Halls 168 257
Carletonville Sport
Complex
5 Halls and outside terrain 0 560
T 3.12.2
132
Libraries; Archives; Museums; Galleries; Community Facilities; Other Policy Objectives Taken From IDP
Service Objectives Outline Service Targets Year -2015/16 Year 2016/17 Year 17/18
Target Actual Target Actual Target
Service Indicators *Previous
Year
*Previous
Year
*Current
Year
*Current Year
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii)
Service Objective xxx
Provision of standard
recreational facilities to
the community of
Merafong City Local
Municipality
No projects planned None None None None None None
T 3.12.3
133
Employees: Libraries; Archives; Museums; Galleries; Community Facilities; Other
Job Level
2016/17 2017/18
Employees Posts Employees Vacancies (fulltime equivalents)
Vacancies (as a % of total posts)
No. No. No. No. %
0 - 3 0 1 0 1 100%
4 - 6 2 5 1 4 80%
7 - 9 17 19 17 2 11%
10 - 12 56 28 27 1 4%
13 - 15 30 55 23 9 16%
Total 105 108 68 17 16%
T 3.12.4
Financial Performance Year 2017/2018: Libraries; Archives; Museums; Galleries; Community Facilities; Other
R'000
Details
2016/2017 2017/2018
Actual Original Budget
Adjustment Budget
Actual Variance to Budget
Total Operational Revenue 13281 15409 15776 15836 3%
Expenditure:
Employees 5271 14944 10444 5772 -159%
Repairs and Maintenance 7 0
Other 12114 15382 15260 15124 -2%
Total Operational Expenditure 17392 30326 25704 20896 -45%
Net Operational Expenditure 4111 14917 9928 5060 -195%
Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual and Original Budget by the Actual. T 3.12.5
Capital Expenditure Year 2017/2018: Libraries; Archives; Museums; Galleries; Community Facilities; Other
R' 000
Capital Projects
Year 2017/2018
Budget Adjustment Budget
Actual Expenditure
Variance from original budget
Total Project Value
Total All
Project A
Project B Nil
Total project value represents the estimated cost of the project on approval by council (including past and future expenditure as appropriate. T 3.12.6
134
COMMENT ON THE PERFORMANCE OF LIBRARIES; ARCHIVES; MUSEUMS; GALLERIES; COMMUNITY FACILITIES;
OTHER (THEATRES, ZOOS, ETC) OVERALL:
Community Facilities
For the current financial year the Section experienced a challenge in terms of Maintaining Facilities. Only soft
Maintenance in terms of Cleaning and grass cutting has been done in Facilities, No major projects have been
implemented due to the financial status of the Municipality. Vandalism and crime in facilities are a contributing
factor to the dilapidation of Merafong facilities adding more badly to the financial status of Council.
Community Libraries
The new Modular library in Batswaneng was officially opened on 3 November 2017 by the MEC Ms Faith
Mazibuko. Users in ward 8, 9 and 10 now have access to a library Facility. A mentionable achievement is that
users at Blybank, Carletonville, Fochville, Kokosi, Greenspark, Wedela, Wedela Extension 3, MPCC, Khutsong
Modular, Batswaneng, Khutsong Extension 2, Khutsong South and Welverdiend libraries have free access to
WI-FI.
R8 000 000 was earmarked for staffing of libraries. This enabled the Municipality to renew contracts of 32
Auxiliaries for extended library hours, 6 Librarians, 2 Senior Library Assistants 10 Library Assistants and 10
interns. The Library book collection was maintained and 10738 Information resources were procured.
Maintenance was done at Khutsong Modular where the floor was replaced. MPCC library was painted on the
inside and the vinyl floors at MPCC and Khutsong X2 libraries were replaced with ceramic tiles. Fochville and
Welverdiend received new blinds. The roof at Khutsong South was fixed and ceilings were replaced.
Grant Funding to the value of R200 000.00 for programs enabled Library Services to successfully implement all
programs as prioritized on the approved Calendar of Events with a total number of 164 programs presented
with a total number of 12 053 beneficiaries.
Funding for Capacity Building was R150 000 This grant paid for 1 staff member to enroll for her Honors studies
in Library and Information science at UNISA. She obtained her Honors degree. UNISA fees were paid for three
staff members who are currently in their second year of study for Library science degrees. . 17 entry level staff
members were sent for a certificate in Circulation training
T 3.12.7
135
3.13 CEMETERIES AND CREMATORIUMS
INTRODUCTION TO CEMETERIES & CREMATORIUMS
Cemeteries are one of the highly visited areas in Merafong City Local Municipality for burials, exhumations and
reburials as well as other functions such as erection of tombstones. They are also frequently visited especially
during Easter and other important holidays. To keep up the high standard of cemeteries, appearance is of high
importance. This is done through the implementation of EPWP, NYS and Zivuseni whereas seven (7) have been
used to full capacity.
The demand for new graves and reopening of reserved graves is escalating annually which has a big influence
on the availability of graves and suitable burial land. The rate of burials is decreased as compared to the
previous financial year.
T 3.13.1
SERVICE STATISTICS FOR CEMETERIES & CREMATORIUMS
AREA 2016/2017 2017/2018
West Wits Cemetery 166 159
Khutsong South Cemetery 631 643
Wedela Cemetery 37 16
Fochville 323 282
Greenspark 31 24
Old Kokosi 03 00
T 3.13.2
136
Cemeteries and Crematoriums Policy Objectives Taken From IDP
Service Objectives Outline Service Targets Year -2014/16 Year 2016/17 2017/18 2018/19
Target Actual Target Actual Target
Service Indicators
*Previous Year
*Previous Year
*Current Year
*Current Year
*Current Year
*Following Year
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)
Service Objective xxx
Allien vegetation eradication program Eradication of allien vegetation in
Carletonville
100.00% 100% 100% 0 0 0
Physical
Infrastructure
Community Parks planned vs
developed
3 2 3 1 2 0 0
Grass cutting on open
spaces and sidewalks
Carletonville, Welverdiend, Blybank,
Khutsong, Fochville, Greenspark,
Kokosi and Wedela
100 % 100% 100% 100% 100% 100%
T 3.13.3
137
Employees: Cemeteries and Crematoriums
Job Lev el
2016/2017 2017/2018
Employees Posts Employees Vacancies (fulltime equivalents)
Vacancies (as a % of total posts)
No. No. No. No. %
0 - 3 1 1 1 0 0%
4 - 6 3 3 2 1 33%
7 - 9 6 8 6 2 25%
10 - 12 7 40 32 8 20%
13 - 15 9 52 41 11 21%
Total 26 104 82 22 21%
T 3.13.4
Year 2016/2017
Actual Original Budget Adjustment
Budget
Actual Variance to
Budget
Total Operational Revenue 388 426 388 383 -11%
Expenditure:
Employees 926 1010 1010 1003 0%
Repairs and Maintenance 0 0%
Other 387 689 661 503 -37%
Total Operational Expenditure 1313 1699 1671 1506 -13%
Net Operational Expenditure 925 1273 1283 1123 -13%
T 3.13.5
R'000
Details
Year 2017/2018
Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the
Actual and Original Budget by the Actual.
Capital Expenditure Year 2017/2018: Cemeteries and Crematoriums
R' 000
Capital Projects
Year 2017/2018
Budget Adjustment Budget
Actual Expenditure
Variance from original
budget
Total Project Value
Total All
Project A
Project B Nil
T 3.13.6
138
COMMENT ON THE PERFORMANCE OF CEMETORIES & CREMATORIUMS OVERALL:
All the requirements regarding the functions of the cemeteries were executed successfully. The grave digging is
done prior the burials as and when required. The service provider, Assembly points Trading and Projects was
appointed in March 2017 for grave digging for a period of 3 years. The exhumations are done upon approval of
application by the relevant departments. All the cemeteries that are currently in use still have a lifespan of
about 5 years minimum. The availability of land for burials use is always communicated with the Section: Town
Planning.
T 3.13.7
3.14 CHILD CARE; AGED CARE; SOCIAL PROGRAMMES
INTRODUCTION TO CHILD CARE; AGED CARE; SOCIAL PROGRAMMES
Implementation of the Integrated Social Development Plan was prioritised during the period in review. Efficient
implementation was hampered by Council financial constraints. However, through solid collaborations with the
provincial Government and local stakeholders a number of programs were achieved.
Empowerment of women and people with disabilities and Early Childhood Development practitioners
Prioritised for Child and Aged care was the provision of safe spaces for these vulnerable groups through support
to community organisations providing these services. In collaboration with local government and community
stakeholders, the section managed to implement capacity building activities for early childhood Development
practitioners and NPOs. The eradication of the scourge of drug and substance abuse is being achieved through
establishment of an ongoing community educational programs and great focus was put on gaining access to the
hotspots and committing users to care facilities.
Partnerships formed with private institutions for sustainable training of NPO facilitators specifically on effective
administration and governance. Households living in poverty are identified on an ongoing process and
supported through programs enabled in partnership with mining houses, Anglo Gold Ashanti and Sibanye Gold.
Through these efforts, a total of seven hundred and thirty one households were reached with food parcels.
T 3.14.1
SERVICE STATISTICS FOR CHILD CARE
Empowerment of ECD practitioners was emphasised during the year in review in order to improve care of
children in child care facilities. Through the National Development Agency, trainings were implemented on
building institutional capacity, Compliance to the NPO Act and resource management. Seventy two (72) ECDs
were reached.
Through on going profiling of ECDs eighty centres were reached. Lack of dedicated personnel for the support of
the Child care programme still a serious challenge and impacts badly on the implementation of plans.
T 3.14.2
139
Child Care; Aged Care; Social Programmes Policy Objectives Taken From IDP
Service Objectives Outline Service Targets 2016/2017 2017/2018 2018/2019
Year 3
Target Actual Target Actual Target
Service Indicators *Previous
Year *Previou
s Year *Current
Year *Current
Year *Current
Year *Following
Year
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)
Service Objective xxx
Early Childhood Development awareness programs
Two workshops on ECD management and legislation and funding criteria held targeting unregistered and unfunded ECDs. Forty-two ECDs were reached.
100% 100% 100% 100% 100% 100% 100%
Capacity building of ECD practitioners
Sixty ECD practitioners from all areas of Merafong City registered with the Mathew Goniwe Institute for the NQF 4 qualification on ECD management.
100% 100% 100% 100% 100% 100% 100%
Implementation of the National Drug Master Plan
Four awareness creating programs held in Khutsong South, Wedela, Carletonville and Khutsong Ext 3. 100% 100% 100% 100% 100% 100% 100%
Indigent Burials 100% 100% 100% 100% 100% 100% 100%
Free Basic Services to Indigents
During the year in review, a total of 1363 indigents were registered on the Indigent database and are provided with free basics services in line with the Council Policy. 100% 100% 100% 100% 100% 100% 100%
Poverty alleviation
Through collaboration with the mining houses, 1 169 indigent families were reached with food parcels during December 2017. 100% 100% 100% 100% 100% 100% 100%
T3.14.3
140
Employees: Child Care; Aged Care; Social Programmes
Job Level
2016/2017 2017/2018
Employees Posts Employees Vacancies (fulltime equivalents)
Vacancies (as a % of total posts)
No. No. No. No. %
0 - 3 1 1 1 0 0%
4 - 6 0 3 0 3 100%
7 - 9 3 4 3 4 100%
Total 4 8 4 7 88%
T 3.14.4
Financial Performance Year 2017/2018: Child Care; Aged Care; Social Programmes
R'000
Details
2016/2017 2017/2018
Actual Original Budget
Adjustment Budget
Actual Variance to Budget
Total Operational Revenue
Expenditure:
Employees
Repairs and Maintenance Not a function of council
Other
Total Operational Expenditure
Net Operational Expenditure
T 3.14.5
Capital Expenditure Year 2017/2018: Child Care; Aged Care; Social Programmes
R' 000
Capital Projects
2017/2018
Budget Adjustment Budget
Actual Expenditure
Variance from
original budget
Total Project Value
Total All
Project A
Project B Not a function of council
T 3.14.6
141
COMMENT ON THE PERFORMANCE OF CHILD CARE; AGED CARE; SOCIAL PROGRAMMES OVERALL:
Implementation of the Integrated Social Development solely relied on support from external sources due to
financial constraints of Council. This impacts negatively on achievement of targets and goals set. Submission of
business plans to source external funding to officiate implementation being explored. The section still operating
with a 90% vacant organogram which impedes coordination and implementation of programs.
T 3.14.7
COMPONENT E: ENVIRONMENTAL PROTECTION
This component includes: pollution control; biodiversity and landscape; and costal protection.
INTRODUCTION TO ENVIRONMENTAL PROTECTION
The Environmental Management Dub-Section within Spatial Planning Department, mainly deals with the
detection of non-compliance in terms fo environmental authorizations (Record of Decisions) on new
developments, as well as compliance to permit and license conditions of listed activities, which is monitored
through monthly audits.
The functions related to pollution control falls within the Municipal Health Services function, which is a District
Municipal function. Good collaboratiion exists to ensure that pollution detected is reported to the relevant
authorities for mitigation and control.
Matters pertaining to Biodiversity are mainly managed by the West Rand District Municipality, in terms of the
Regional Biodiversity Plan. Landscaping and parks is dealt with by the Parks Section.
T 3.15
3.15 POLLUTION CONTROL
INTRODUCTION TO POLLUTION CONTROL
The Environmental Management Sub-Section within the Spatial Planning Department, mainly deals with
detection of non-compliance in terms of envirnmental authorizations (RODs) on new developments, as well as
compliance to permit and license conditions of listed activities, which is monitored through monthly audits.
The functions related to pollution control falls within the Municipal Health Services function, which is a District
Municipal function. Good collaboration exist to ensure that pollution detected are reported to the relevant
authorities for mitigation and control.
Matter pertaining to biodiversity is mainly managed by the West Rand District Municipality, in terms of the
Regional Biodiversity Plan.
142
The environmental management section has conducted monthly audits of all waste management facilities
within Merafong City, being the Rooipoort Landfill site, Fochville- and Welverdiend Transfer Stations. The
compliance to waste management standards and permit conditions remains a serious challenge. The average
compliance score for the Rooipoort Landfill Site is 5%. The Fochville Transfer Station average compliance has
dropped to 64%, whilst the Welverdiend Drop-off facility achieved an average compliance score of 40%.
The inability to implement recommendations remains a serious concern and is evident from the deteriorating
environmental conditions. The lack of capacity, compounded by the financial position of Council, to address
these issues remains a serious challenge.
Waste collection services throughout Merafong City have also deteriorated during the year which contributed
to illegal dumping and waste pollution. The worst affected areas are the informal settlements where no formal
waste collection services exists. The Waste Management Section could also not roll-out kerbside collection
services to the newly developed human settlements in Khutsong South Extension 4. A strategy to address these
shortcomings have been developed by the relevant section for implementation as and when funding becomes
available.
Monitoring of Waste Water Treatment Facilities
Quarterly audits have been conducted to monitor compliance to the legislative requirements athe 4 Waste
Water Treatment Works of Merafong. The Khutsong Waste Water Treatment Plant achievd increased to an
average compliance score of 80%, the Kokosi Waste Water treatment plant an average score of 78% and the
Oberholzer Waste Water Treatment Plant an average score of 83%. Recommendations have been made to the
relevant sections to ensure full compliance.
The Wedela Waste Water treatment plant was a mine facilty but is currently managed by the Municipality. The
facility does not have a licence and therefore no formal audits could be conducted. The Water and Sanitation
Section is in process to apply for a water use licence.
Monitoring of Kokosi Extension 6 human settlement project - RoD requirements
Pertaining to the compliance of the Environmental Autorisation (RoD) issued for the Kokosi Extension 6 human
settlement project, audits are conducted on a monthly basis. The average compliance score achieved
throughout the year was 16%. All non-compliance items have been reported to the project steering
committee, as the Gauteng Department for Human Settlement is the project implementor.
T 3.15.1
143
SERVICE STATISTICS FOR POLLUTION CONTROL
The following inspections were conducted within the year of review which resulted in 48 non-compliance
notices issued:
Audits conducted - 72
Routine site inspections - 417
T 3.15.2
144
Pollution Control Policy Objectives Taken From IDP
Service Objectives
Outline Service Targets Year 2017/2018 2018/2019 2019/2020 2020/2921
Target Actual Target Actual Target
Service Indicators (i)
*Previous Year
*Previous Year
*Current Year
*Current Year
*Current Year
*Following Year
(ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)
Service Objective xxx
Water and air purity % non-compliance detected vs compliance notices issued within 7 days
100% 100% 100% 100% 100% 100% 100% 100%
% Environmental Audits Conducted vs Planned
72 72 72 72 72 72 72 72
T 3.15.3
145
Financial Performance Year 2017/2018: Pollution Control
R'000
Details
2016/2017 2017/2018
Actual Original Budget Adjustment Budget
Actual Variance to Budget
Total Operational Revenue
Expenditure:
Employees
Repairs and Maintenance Refer to Table 3.10.5
Other
Total Operational Expenditure
Net Operational Expenditure
T 3.15.5
Capital Expenditure Year 2017/2018: Pollution Control
R' 000
Capital Projects
Year 2017/2018
Budget Adjustment Budget
Actual Expenditure
Variance from original budget
Total Project Value
Total All
No capital projects
T 3.15.6
Employees: Pollution Control
Job Level
2016/2017 2017/2018
Employees Posts Employees Vacancies (fulltime equivalents)
Vacancies (as a % of total posts)
No. No. No. No. %
0 - 3 1 1 1 0 0%
4 - 6 2 4 2 2 50%
Total 3 5 3 2 40%
T 3.15.4
146
COMMENT ON THE PERFORMANCE OF POLLUTION CONTROL OVERALL:
Pollution Control is an operational programme within the Spatial Planning & Environmental Management
Section. The lack of funding to fund high cost capital infrastructure such as air pollution monitoring stations and
sampling equipment impacts negatively on the effectiveness of the function. Due to the financial constraints
experienced by the municipality, the likelihood to source funding to expand the function is low. This section
therefore mainly focuses on operational audits and monitoring compliance.
T 3.15.7
3.16 BIO-DIVERSITY; LANDSCAPE (INCL. OPEN SPACES); AND OTHER (EG. COASTAL
PROTECTION)
INTRODUCTION BIO-DIVERSITY AND LANDSCAPE
The Section: Parks and Cemetries is responsible for all grass cutting on open spaces, side walks, community
parks, cemetries and municipal facilities. This also includes maintenance of development of parks, town
entrances, cemetries, mamagement of the municipal nursery and maintenance of all municipal gardens. All the
grass cutting that was previously done by the contracterd service providers is currently done by the Parks and
Cemetries personnel.
T 3.16.1
SERVICE STATISTICS FOR BIO-DIVERSITY AND LANDSCAPE
Landscaping of municipal gardens, parks and town entrances is done in accordance with the pre-approved
plans. During the 2017/18 financial year no park development was done. Grass cutting in the following parks
and cemeteries was done as well as the maintenance thereof:
Areas Number maintained
Parks in Merafong City 41
Cemeteries 12
Total 53
T 3.16.2
147
Bio-Diversity And Landscape and other Policy Objectives taken from the IDP
Service Objectives Outline Service Targets Year -2015/16 Year 2016/17 Year Year 2017/18
Target Actual Target Actual Target
Service Indicators
*Previous Year
*Previous Year
*Current Year
*Current Year
*Current Year
*Following Year
Service Objective xxx
Allien vegetation eradication program Eradication of allien vegetation in
Carletonville
100.00% 100% 100% 100% 100% 100%
Physical
Infrastructure
Community Parks planned vs
developed
3 2 3 1 2
Grass cutting on open
spaces and sidewalks
Carletonville, Welverdiend, Blybank,
Khutsong, Fochville, Greenspark,
Kokosi and Wedela
100.00% 100% 100% 100% 100% 100% 100%
T 3.16.3
148
Financial Performance Year 2017/2018: Bio-Diversity; Landscape and Other
R'000
Details
2016/2017 Year 2017/2018
Actual Original Budget
Adjustment Budget
Actual Variance to Budget
Total Operational Revenue 0 125 100 95 -32%
Expenditure:
Employees 15845 16966 16466 15594 -9%
Repairs and Maintenance 148 1441 921 68 -2019%
Other 2436 3419 2012 429 -697%
Total Operational Expenditure 18429 21826 19399 16091 -36%
Net Operational Expenditure 18429 21701 19299 15996 -36%
T 3.16.5
Capital Expenditure Year 2017/2018: Bio-Diversity; Landscape and Other
R' 000
Capital Projects
2017/2018
Budget Adjustment Budget
Actual Expenditure
Variance from original
budget
Total Project Value
Total All
NO CAPITAL PROJETCS
Project A
Project B
T 3.16.6
Employees: Cemeteries and Crematoriums
Job Level
2016/2017 2017/2018
Employees Posts Employees Vacancies (fulltime equivalents)
Vacancies (as a % of total posts)
No. No. No. No. %
0 - 3
4 - 6
ALL CEMETERIES PERSONNEL CAPTURED UNDER T3.13.4 7 - 9
10 - 12
13 - 15
Total
T 3.16.4
149
COMMENT ON THE PERFORMANCE OF BIO-DIVERSITY; LANDSCAPE AND OTHER OVERALL:
The Section: Parks and Cemeteries did not have any capital projects under the financial year in review. The
section mainly focuses on grass cutting on open spaces, sidewalks, parks, cemeteries and municipal facilities, as
well as maintenance of all public parks which were executed successfully.
T 3.16.7
COMPONENT F: HEALTH
This component includes: clinics; ambulance services; and health inspections.
Health is a Provincial Function.
3.17 CLINICS
Clinics is not a function of Merafong Municipality
3.18 AMBULANCE SERVICES
Ambulance Services is a District Municipality’s function.
3.19 HEALTH INSPECTION; FOOD AND ABBATOIR LICENSING AND INSPECTION; ETC
Health Inspections, Food and Abattoir Licensing and Inspection, etc are not functions of Merafong City.
150
COMPONENT G: SECURITY AND SAFETY
This component includes: police; fire; disaster management, licensing and control of animals, and control of public nuisances, etc.
INTRODUCTION TO SECURITY & SAFETY
This component is focused in safety and security relating to the protection of council employees, councillors,
visitors, clients and suppliers. Other objectives of this component include protection of municipal assets and
equipment.
The community safety is critical to ensure safety of members of public. The community safety forum was
recently established to mainly deal with crime related activities within the municipality. This is also mandated
by the National Safety Strategy that devolved within the three tiers of government.
T 3.20
3.20 POLICE
INTRODUCTION TO TRAFFIC POLICE
This component ensures law enforcement relating to roadworthy vehicles, driver fitness, road conditions,
promotion of road discipline, safety and education to road users and community safety policing. All law
enforcement activities are executed within the legislative framework of National Road Traffic Act 93 of 1996,
Municipal By-laws, Criminal Procedure Act 51 of 1977 and the Constitution of the country.
The objective is to do traffic control thus reducing motor vehicle accidents. Public nuisance is addressed
through municipal by-laws. Stray animals within the municipality are dealt with in conjunction with the SPCA as
per a service level agreement.
T 3.20.1
Security and Safety Police Service Data
Details 2016/17 2017/18 2018/19
Actual No. Estimate
No. Actual No. Estimate No.
1 Number of road traffic accidents during the year 1924 1900 1925 1900
2 Number of by-law infringements attended 137 0 36 0
3 Number of traffic officers in the field on an average day 51 51 28 51
4 Number of traffic officers on duty on an average day 49 55 25 49
T 3.20.2
151
Police Policy Objectives Taken From IDP
Service
Objectives
Outline Service
Targets
2014/15 2015/16 2016/17 2017/18
Target Actual Target Actual Target
Service
Indicators
*Previous Year *Previous
Year
*Current
Year
*Current
Year
*Current Year *Following
Year
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)
Service Objective
Reduction in road accidents
Reduction in road accidents over the target for previous year
x% reduction in road accidents over the target for the previous year
0% reduction in year -1
A0% reduction in year -1
0% reduction in year 0
T1% reduction in year 0
5% reduction in year 1
Reduction in road accidents
Reduction in road accidents over the years
1644 1561 1561 1561 1644 1900 1855
T 3.20.3
152
Financial Performance Year 2017/2018: Police
R'000
Details
2016/2017 2017/2018
Actual Original Budget
Adjustment Budget
Actual Variance to Budget
Total Operational Revenue 22057 45801 46306 50430 9%
Expenditure:
Traffic Police Officers
Other employees 31594 34855 34855 33416 -4%
Repairs and Maintenance 386 350 350 483 28%
Other 3597 28924 28572 31174 7%
Total Operational Expenditure 35577 64129 63777 65073 1%
Net Operational Expenditure 13520 18328 17471 14643 -25%
T 3.20.5
Capital Expenditure Year 2017: Police
R' 000
Capital
Projects
Year 2017
Budget Adjustment
Budget
Actual
Expenditure
Variance from
original budget
Total Project Value
Total All
Project A
Nil. No Capital Projects Traffic Police
Project D
T 3.20.6
Employees: Traffic Police Officers
Job Level Police
2016/2017 2017/2018
Employees Posts Employees Vacancies (fulltime
equivalents)
Vacancies (as a % of total posts)
Administrators No. No. No. No. %
Chief Police Officer & Deputy
Other Police Officers
0 - 3 0 0 0 0 0%
4 - 6 6 9 6 3 33%
7 - 9 58 57 31 26 46%
10 - 12 25 32 25 7 22%
Total 89 98 62 36 37%
T 3.20.4
153
COMMENT ON THE PERFORMANCE OF SAFETY AND SECURITY OVERALL:
Law enforcement operational plans are set with the objective to mainly reduce motor vehicle accidents,
reducing crime in the area, providing road safety education, road markings and signs, reduction of illegal
trading in the area and provision of other special services. The motor vehicle accident rate increased as
compared to previous years due to shortage of traffic personnel. Increase in crime also played a role in this
because of reduced staff compliment.
T 3.20.7
3.21 FIRE
INTRODUCTION TO FIRE SERVICES
Fire services is a competency of West Rand District Municipality.
3.22 OTHER (DISASTER MANAGEMENT, ANIMAL LICENCING AND CONTROL, CONTROL OF
PUBLIC NUISANCES AND OTHER)
Other (Disaster Management, Animal Licencing and Control, Control of Public Nuisances and other) are not
functions of Merafong City.
154
COMPONENT H: SPORT AND RECREATION
This component includes: community parks; sports fields; sports halls; stadiums; swimming pools; and camp
sites.
INTRODUCTION TO SPORT AND RECREATION
Sport and Recreation/Art & Culture department renders service delivery to the community of Merafong City
through programmes outlined annually in the approved calendar of events. Sport Confederations were formed
in the four areas of Merafong City (Carletonville, Fochville, Wedela and Khutsong) to strengthen and solidify
relations with the Sport Community, for dissemination of information regarding programmes being presented
by the Sport and Recreation Department.
Free usage of Municipal Sport and Arts Facilities were provided for the previously disadvantaged communities
of Merafong City with the purpose of providing them with a platform to practice their sporting and creating
gifts and thus assisting with the fight against social challenges of crime, teenage pregnancies and drug abuse
which are prevalent amongst youth
T 3.23
3.23 SPORT AND RECREATION
SERVICE STATISTICS FOR SPORT AND RECREATION 2017/18
Month Program Implemented
September 2017 Official opening of the Popo Molefe Stadium
December 2017 Merafong festival games
February 2018 Merafong community games
March 2018 Merafong sport Indaba
April 2018 Freedom day celebrations
SERVICE STATISTICS FOR ARTS AND CULTURE 2017/18
Month Program Implemented
September 2017 Go-West Heritage Festival and Gauteng Carnival
March 2018 Poetic Vibrations and Comedy
March 2018 Merafong Arts Indaba
March 2018 Ishashalazi Theatre Awards
March 2018 Actors Youth Indaba Programme through the Sello Maake ka Ncube Foundation
T 3.23.1
155
Sport and Recreation Policy Objectives Taken From IDP
Service Objectives Outline Service Targets 2014/15 2015/16 2016/17 2017/18
Target Actual Target Actual Target
Service Indicators
*Previous Year
*Previous Year
*Current Year
*Current Year
*Current Year
*Following Year 2019/18
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)
Service Objective xxx
Provision and Management of Facilities
Multi-Purpose Community Centre in Khutsong South
0% 0% 0% 0% 0% 90% 10% 10%
T 3.23.2
156
Financial Performance Year 2017/2018: Sport and Recreation
R'000
Details
2016/2017 2017/2018
Actual Original Budget Adjustment Budget
Actual Variance to Budget
Total Operational Revenue 180 69 69 0 0
Expenditure:
Employees 4126 4135 4135 2491 -66%
Repairs and Maintenance 105 0
Other 4777 913 913 602 -52%
Total Operational Expenditure 9008 5048 5048 3093 -63%
Net Operational Expenditure 8828 4979 4979 3093 -61%
T 3.23.4
Employees: Sport and Recreation
Job Level
2016/17 2017/18
Employees Posts Employees Vacancies (fulltime
equivalents)
Vacancies (as a % of total posts)
No. No. No. No. %
0 - 3 1 0 0 1 0
4 - 6 2 0 1 1 0
7 - 9 1 0 1 0 0
10 - 12 2 2 2 2 100%
Total 6 2 4 4 200%
T 3.23.3
157
Capital Expenditure Year 2017/2018: Sport and Recreation
R' 000
Capital Projects
Year 2017/2018
Budget Adjustment Budget
Actual Expenditure
Variance from original budget
Total Project Value
Total All
Project A
Project B Nil
T 3.23.5
COMMENT ON THE PERFORMANCE OF SPORT AND RECREATION OVERALL:
In the year in review the Sport & Recreation/Arts & Culture department implemented a total of 10 programs. The highlight of the financial year is the “Actors
Youth Incubation Program through the Sello Maake ka Ncube Foundation” which is a mentorship and internship program which took 30 youths from Merafong
city and trained them in Directing, Script writing, Acting and Dance. Upon completion the youths will receive an accredited certificate and will be in a better
position to perform at mainstreams or professional level within the creative industry.
Programs were implemented in collaboration with Local, District and Provincial Stakeholders due to financial constrains in Merafong City, however budget
should be availed to ensure programs are implemented as planned on the approved Calendar of Events.
Completion of the Khutsong South Multi-Purpose Community Center was delayed due to interruptions in delivery of materials as well as the contractor
experiencing cash flow challenges, however the project is envisaged to be completed during the 2018/19 financial year.
T 3.23.6
158
COMPONENT I: CORPORATE POLICY OFFICES AND OTHER SERVICES
This component includes: corporate policy offices, financial services, human resource services, ICT services, property services.
INTRODUCTION TO CORPORATE POLICY OFFICES, Etc
The Department Corporate Shared Services consists of six (6) Units/Sections, namely: Industrial Relations, Employment Equity, Human Capital, ICT, Legal and
Secretariat as well as Corporate Communication and Marketing.
The implementation of the Human Resource Strategy is a guide in the Department and Human Resource Policies find their home here. Compliance with audit
requirements is strived for as is compliance with legislated requirements, such as having scheduled Council meetings
T 3.24
3.24 EXECUTIVE AND COUNCIL
This component includes: Executive office (mayor; councilors; and municipal manager).
INTRODUCTION TO EXECUTIVE AND COUNCIL
The focus over the past years has been on delivering basic social needs and housing. In spite of the remaining backlogs, major strides have been made in this
regard. However, there still remains a huge challenge in terms of ensuring that the institution does not just deliver houses and services, but creates integrated
and sustainable settlements. Challenges experienced include geological problems experienced in parts of the Municipality, as well as financial challenges to
extend services.
During the 2017/18 IDP review, one of the key strategic objectives of the institution has been “to deliver sustainable infrastructure which supports social and
economic development”.
T 3.24.1
159
SERVICE STATISTICS FOR THE EXECUTIVE AND COUNCIL
NONE.
T 3.24.2
The Executive and Council Policy Objectives Taken From IDP
NONE. T3.24.3
160
Financial Performance Year 2017/2018: The Executive and Council
R'000
Details
2016/2017 2017/2018
Actual Original Budget
Adjustment Budget
Actual Variance to Budget
Total Operational Revenue 4885 1555 1555 1610 3%
Expenditure:
Employees 28549 21181 21181 26438 20%
Repairs and Maintenance 0
Other 33888 38783 38783 36918 -5%
Total Operational Expenditure 62437 59964 59964 63356 5%
Net Operational Expenditure 57552 58409 58409 61746 5%
T 3.24.5
Capital Expenditure Year 2017/2018: The Executive and Council
R' 000
Capital Projects
Year 2017/2018
Budget Adjustment Budget
Actual Expenditure
Variance from original
budget
Total Project Value
Total All
NO CAPITAL PROJECTS
Project A
Project B Nil
T 3.24.6
Employees: The Executive and Council
Job Level
2016/2017 2017/2018
Employees Posts Employees Vacancies (fulltime equivalents)
Vacancies (as a % of total
posts)
No. No. No. No. %
0 - 3 2 3 3 1 33%
4 - 6 5 10 5 5 50%
7 - 9 6 8 6 2 25%
10 - 12 7 15 7 8 53%
13 - 15 9 15 9 6 40%
16 - 18 11 21 11 10 48%
19 - 20 18 30 18 12 40%
Total 58 102 59 44 43%
T 3.24.4
161
COMMENT ON THE PERFORMANCE OF THE EXECUTIVE AND COUNCIL:
None.
T 3.24.7
3.25 FINANCIAL SERVICES
INTRODUCTION FINANCIAL SERVICES
Council closed off with a deficit of R80.424 Million comparing to a budgeted deficit of R262.374 Million.
Council’s cash flow had deteriorated in 2016/2017.
Council’s liquidity ratio had deteriorated in 2016-2017.
The liquidation of Blyvooruitzicht mine had a detrimental effect on council’s collection performance.
Blyvooruitzicht mine is owing council R409 463 039 as at the end of June 2017 which represents 35% of councils
outstanding debt owed by consumers. Councils outstanding debtors as at 30 June 2017 stands at R1 175 098
984.
The cash flow constrains had resulted in that council had to implement serious cost cutting measures and
creditors were prioritised for payment.
Council were not be able to cover its fixed operating expenditure.
Council adopted a turn-around strategy to turn the financial situation around. Water and Electricity losses
remain a serious challenge. The municipality, like most municipalities in the country has faced the usual
challenges for the last three years in maintaining positive cash flows and administering successful debtor
collections.
Council’s average payment levels for the past twelve months were 73.90% comparing to 69.72% in 2015/2016.
The non-payment of services by consumers is a serious situation. Council needs an average payment level of
87.50% to enable them to service its creditors.
The non-payment by consumers had resulted in that council had to increase its provision for doubtful debt by
R272 961 390 for the 2016-2017 financial year.
Council did not experience large number of billing complaints from consumers. Meters were read monthly and
are reasonable accurate.
Council could not approve a cash funded budget for the MTREF for the financial years 2016/2017 to 2018/2019.
T 3.25.1
162
Debt Recovery
R' 000
Details of the types of
account raised and recovered
2016/2017 2017/2018 2018/2019
Actual for
accounts billed in
year
Proportion of
accounts value
billed that were
collected in the year
%
Billed in Year
Actual for accounts billed in
year
Proportion of
accounts value
billed that were
collected %
Estimated outturn
for accounts billed in
year
Estimated Proportion
of accounts
billed that were
collected %
Property Rates 136 314 80.92% 160 624 121 358 75.55% 185 386 65.00%
Electricity 286 886 95.30% 277 616 273 802 98.63% 273 707 65.00%
Water 214 010 72.07% 302 006 197 545 65.41% 294 017 65.00%
Sanitation 23 921 51.63% 58 373 26 515 45.42% 29 090 65.00%
Refuse 33 556 49.71% 74 422 32 617 43.83% 58 477 65.00%
Other 891 71.74% 1 241 3 736 301.05%
T 3.25.2
Council’s average payment levels for the past twelve months were 68.06% comparing to 73.90% in 2016/2017
The non-payment of services by consumers is a serious situation. Council needs an average payment level of
87.50% to enable them to service its creditors.
The liquidation of Blyvooruitzicht mine had a detrimental effect on council’s collection performance.
Blyvooruitzicht mine is owing council R501,210,343 as at the end of June 2018 which represents 35% of councils
outstanding debt owed by consumers. Councils outstanding debtors as at 30 June 2018 stands at
R1,424,347,279
In addition Sibanye Gold is withholding its Rates and Taxes pending the outcome of the review of the valuation
roll.
The non-payment by consumers had resulted in that council had to increase its provision for doubtful debt IN
2017/2018 by R327,490,479 comparing to R272 961 390 for the 2016-2017 financial year.
Council did not experience large number of billing complaints from consumers. Meters were read monthly and
are reasonable accurate.
T 3.25.2.1
163
Service Objectives Year 2
Target Actual Actual
Service Indicators *Previous Year *Previous Year *Current Year *Current Year *Current Year *Following Year
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)
Increase in speed of payment of tariffs, tax demands, invoices No more than x% of creditors raised (in Rand
value) during the year outstanding (o/s) at year
end
No more than T0% of
current yr creditors
o/s at yr end
No more than A0% of
current yr creditors
o/s at yr end
No more than T1% of
current yr creditors
o/s at yr end
No more than T1% of
current yr creditors
o/s at yr end
No more than A1% of
current yr creditors
o/s at yr end
No more than T2% of
current yr creditors
o/s at yr end
No more than T5% of
current yr creditors o/s
at yr end
No more than T5% of
current yr creditors o/s
at yr end
Reducing the number of invoices raised by increasing
advance payment for services rendered (A project requiring
partipation by all departments but let by the central finance
department)
x% reduction in number of invoices raised over the
previous year's target
T0% reduction in
invoices raised; target
limit of invoices
A0% reduction in
invoices raised; target
limit of invoices
T1% reduction in
invoices raised; target
limit of invoices
T1% reduction in
invoices raised; target
limit of invoices
A1% reduction in
invoices raised; target
limit of invoices
T2% reduction in
invoices raised; target
limit of invoices
T5% reduction in
invoices raised; target
limit of invoices
T5% reduction in
invoices raised; target
limit of invoices
Improving speed of legal measures to recover revenues Commence legal proceedings for recovery of
revenues within 4 weeks of the due date
Legal proceeding
within 4 weeks of due
date
Legal proceeding
within 4 weeks of due
date
Legal proceeding
within 4 weeks of due
date
Legal proceeding
within 4 weeks of due
date
Legal proceeding
within 4 weeks of due
date
% of legal proceeding
commenced within 4
weeks of due date
% of legal proceeding
commenced within 4
weeks of due date
% of legal proceeding
commenced within 4
weeks of due date
T 3.25.3
Service Objective xxx
Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incoporated in the indicator set for each municipality to which they apply. These are 'universal municipal indicators'. *
'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the IDP must be fundable
within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Intergrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.
Financial Service Policy Objectives Taken From IDP
Outline Service Targets Year 0 Year 1 Year 3
Target Target
164
Financial Performance Year 2017/2018: Financial Services
R'000
Details
2016/2017 2017/2018
Actual Original Budget
Adjustment Budget
Actual Variance to Budget
Total Operational Revenue 405993 426609 442160 440372 3%
Expenditure:
Employees 27588 31768 32788 29351 -8%
Repairs and Maintenance 0 1500 100%
Other 192152 132908 142945 346504 62%
Total Operational Expenditure 219740 164676 175733 377355 56%
Net Operational Expenditure -186253 -261933 -266427 -63017 -316%
T 3.25.5
Capital Expenditure Year 2017/2018: Financial Services
R' 000
Capital Projects
2017/2018
Budget Adjustment Budget
Actual Expenditure
Variance from original
budget
Total Project Value
Total All
Project A
Project B Nil
T 3.25.6
Employees: Financial Services
Job Level
2016/2017 2017/2018
Employees Posts Employees Vacancies (fulltime
equivalents)
Vacancies (as a % of total posts)
No. No. No. No. %
0 - 3 5 5 3 2 40%
4 - 6 9 15 9 6 40%
7 - 9 31 47 34 13 28%
10 - 12 29 42 27 15 36%
13 - 15 1 1 1 0 0%
Total 75 110 74 36 33%
T 3.25.4
165
COMMENT ON THE PERFORMANCE OF FINANCIAL SERVICES OVERALL:
Council closed off with a deficit of R80.424 Million comparing to a budgeted deficit of R262.374 Million.
Council’s cash flow had deteriorated in 2016/2017.
Council’s liquidity ratio had deteriorated in 2016-2017.
The liquidation of Blyvooruitzicht mine had a detrimental effect on council’s collection performance.
Blyvooruitzicht mine is owing council R409 463 039 as at the end of June 2017 which represents 35% of councils
outstanding debt owed by consumers. Councils outstanding debtors as at 30 June 2017 stands at
R1 175 098 984.
The cash flow constrains had resulted in that council had to implement serious cost cutting measures and
creditors were prioritised for payment.
Council were not be able to cover its fixed operating expenditure.
Council adopted a turn-around strategy to turn the financial situation around. Water and Electricity losses
remain a serious challenge. The municipality, like most municipalities in the country has faced the usual
challenges for the last three years in maintaining positive cash flows and administering successful debtor
collections.
Council’s average payment levels for the past twelve months were 73.90% comparing to 69.72% in 2015/2016.
The non-payment of services by consumers is a serious situation. Council needs an average payment level of
87.50% to enable them to service its creditors.
The non-payment by consumers had resulted in that council had to increase its provision for doubtful debt by
R272 961 390 for the 2016-2017 financial year.
T 3.25.7
166
3.26 HUMAN RESOURCE SERVICES
INTRODUCTION TO HUMAN RESOURCE SERVICES
The Human Capital Management Section of the Merafong City Local Municipality is focused on providing the
best personnel services through fair and transparent processes and procedures. It is also focused on effective
recruitment procedures, training and empowering staff, and providing expert and professional advice to staff
and management on human resources-related issues.
The Human Resources Department maintained its strategy during 2017/2018 to recruit qualified and
competent staff to fill vacancies. Structured interviews were conducted together with work sampling-based
tests to assist with the selection of the best candidates for appointment. Verification of qualifications, working
record/history, possible fraudulent activities, and criminal record are being done for selected positions through
an independent service provider before appointments are made.
This prevented the municipality from appointing staff without the necessary skills, competencies, and
qualifications.
In addition to the foregoing, a Workplace Skills Plan is being compiled, submitted to the Local Government
Sector Education Training Authority (LGSETA) on an annual basis, and implemented accordingly to attend to the
most critical skills development needs. It is usually complemented by the bursary scheme, which caters for
longer-term qualification strategies.
The Local Labour Forum, Staff Wellness Meetings, and Human Resources Development Meetings were being
planned to take place on a monthly basis.
T 3.26.1
SERVICE STATISTICS FOR HUMAN RESOURCE SERVICES
During the 2017/2018 financial year, the position of the municipal manager and all the section 56 positions
were filled except one which is in the final stage of the appointment. The filling of these strategic positions
ensured the stability of the municipality and improvement in the rendering of services to the community.
The staff complement for the 2017/2018 period consisted of 2005 permanent positions, of which 988 posts are
filled, whereas the services of 60 employees were terminated due to factors such as retirement and
resignations.
T 3.26.2
167
Human Resource Service Policy Objectives Taken From IDP
Service Objectives Outline Service Targets 2016/2017 2017/2018 2018/2019 2019/2020
Target Actual Target Actual Target
Service Indicators *Previous
Year *Previous
Year *Current
Year *Current
Year *Current
Year *Following
Year
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)
Service Objective xxx
To ensure compliance with the EEA
3 employees from EEA target groups to be employed at three highest levels
1 4 4 1 1
EE Plan to be submitted to the department of Labour by end October Annually.
1 1 1 1 1 1 1 1
To support and promote total well-being of the staff
Staff wellness activities to be implemented
To capacitate employees in order to enhance service delivery
% of payroll budget to be spent on Workplace Skills Plan.
To maintain healthy relationship with labour
T 3.26.3
168
Financial Performance Year 2017/2018: Human Resource Services
R'000
Details
2016/2017 2017/2018
Actual Original Budget
Adjustment Budget
Actual Variance to Budget
Total Operational Revenue 1 1800 1800 354 -408%
Expenditure:
Employees 9307 30487 27987 9516 -220%
Repairs and Maintenance 0 0 0 0 0
Other 26922 3650 3778 3088 -18%
Total Operational Expenditure 36229 34137 31765 12604 -171%
Net Operational Expenditure 36228 32337 29965 12250 -164%
T 3.26.5
Capital Expenditure Year 2017/2018: Human Resource Services
R' 000
Capital Projects
Year 2017/2018
Budget Adjustment Budget
Actual Expenditure
Variance from original
budget
Total Project Value
Total All
NO CAPITAL PROJECTS
Project A
Project B
T 3.26.6
Employees: Human Resource Services
Job Level
2016/2017 2017/2018
Employees Posts Employees Vacancies (fulltime equivalents)
Vacancies (as a % of total posts)
No. No. No. No. %
0 - 3 0 0 0 0 0%
4 - 6 3 6 3 3 50%
7 - 9 3 4 3 2 50%
10 - 12 3 7 3 4 57%
13 - 15 1 1 1 0 0%
Total 10 18 10 9 50%
T3.26.4
169
COMMENT ON THE PERFORMANCE OF HUMAN RESOURCE SERVICES OVERALL:
The cash flow problems have a negative effect on the department’s ability to perform recruitment. Treasury
further instructed the Municipality to decrease the manpower budget with a further 3%.
Funded vacancies for general workers increased to 212 by 30 June 2018. The lack of the appointment at this
level impacted directly on service delivery. The municipality relies on NYS programme to mitigate the
challenges
A program has been developed and is being implemented to appoint staff in critical vacant positions. The
service delivery departments are being addressed first to make appointments, to alleviate pressure on service
delivery.
T 3.26.7
3.27 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES
This component includes: Information and Communication Technology (ICT) services.
INTRODUCTION TO INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES
Merafong City Local Municipality Information Communication and Technology is a component of Corporate
Support and Shared Services. The section reports to the Director Corporate Support Services.
Merafong ICT is playing an increasingly strategic role as an enabler of Merafong City local municipality. The
primary goals are to ensure that the investment in ICT generate business value and mitigate risks that are
associated with ICT. Merafong Information Communication and Technology support all ICT infrastructure and
Operations on a daily basis in order to ensure the availability of systems for service delivery objectives. The ICT
section support the following,
- Network management – WAN,LAN, Telecommunication, Radio and wireless
- Software and data Support – management and support of data and software
- ICT Service Delivery Support – management of ICT contracts and assets
- ICT Governance
T 3.27.1
170
SERVICE STATISTICS FOR ICT SERVICES
Upgrading/installation of network
Installation of computers/printers/software
Maintenance of hardware/e-mails/ internet/ servers
JULY 2017 26 50 33
AUGUST 2017 8 15 20
SEPTEMBER 2017 12 14 19
OCTOBER 2017 20 25 33
NOVEMBER 2017 5 27 42
DECEMBER 2017 4 7 14
JANUARY 2018 6 11 16
FEBRUARY 2018 5 23 21
MARCH 2018 15 40 23
APRIL 2018 20 7 10
MAY 2018 12 14 24
JUNE 2018 18 19 17
TOTAL 151 252 272
T 3.27.2
171
ICT Services Policy Objectives Taken From IDP
Service Objectives Outline Service Targets Year 14/15 Year 15/16 Year 16/17 Year /17 18
Target Actual Target Actual Target
Service Indicators *Previous Year
*Previous Year
*Current Year
*Current Year
*Current Year
*Following Year
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)
Service Objective xxx
Master Systems plan
Implementation of Master Systems Plan
60 60 65 70 75 100 100 95%
Disaster Recovery Plan
Development of ICT policies 65 70 75 80 85 100 100 100%
Network
Infrastructure
Upgrading network infrastructure 100%
T3.27.3
172
Employees: ICT Services
Job Level
Year 2016/2017 Year 2017/2018
Employees Posts Employees Vacancies (fulltime equivalents)
Vacancies (as a % of total posts)
No. No. No. No. %
0 - 3 1 1 1 0 0%
4 - 6 5 8 5 3 38%
7 - 9 3 3 2 3 100%
Total 9 12 8 6 50%
T3.27.4
Financial Performance Year 2017/2018: ICT Services
R'000
Details
2016/2017 Year 2017/2018
Actual Original Budget
Adjustment Budget
Actual Variance to Budget
Total Operational Revenue Expenditure:
Employees 3926 4707 4707 4015 -17%
Repairs and Maintenance 1 500 500 38 -1216%
Other 11057 5234 7298 8133 36%
Total Operational Expenditure 14984 10441 12505 12186 14%
Net Operational Expenditure 14984 10441 12505 12186 14%
T 3.27.5
Capital Expenditure Year 2017/18: ICT Services
R' 000
Capital Projects Year 2016/17
Budget Adjustment
Budget
Actual
Expenditure
Variance
from original
budget
Total Project
Value
Total All
Project A
NO CAPITAL PROJECTS
T 3.27.6
173
COMMENT ON THE PERFORMANCE OF ICT SERVICES OVERALL:
ICT services are rendered by Merafong Technicians, such as hosting the Website, emails, internet services,
network switches, radios and network connectivity, servers, hardware and telephones maintenance. The
services rendered by internal ICT staff resulted in saving ICT costs previously paid to service providers.
The section cleared all management findings of the Auditor General through OPCA initiatives.
T3.27.7
3.28 PROPERTY; LEGAL; RISK MANAGEMENT AND PROCUREMENT SERVICES
This component includes: property; legal; risk management and procurement services.
INTRODUCTION TO PROPERTY; LEGAL; RISK MANAGEMENT AND PROCUREMENT SERVICES
Introduction to Legal Services
The section Corporate & Legal consist of Legal Services, Secretariat and Administration as well as the Fleet
section.
The Administration section includes the Municipal Telephone Switchboard, Records and Archive Management
as well as the Document Reproduction Unit.
Secretariat services are also provided by the section with the compilation and distribution of various agendas
for Council Meetings, Mayoral Committee Meetings and Section 80 Committee Meetings. Minutes of these as
well as other meetings are also prepared and distributed by the section.
Legal Services is a support function to the whole municipality. The section assists with perusing and drafting of
contracts and agreements, provision of legal advice as well as assisting with legal action instituted by the
municipality or against the municipality. The section also assists with perusing and drafting policies, by-laws
and other documentation.
The Fleet section assists various departments to manage the municipal fleet, the logistics regarding fuel
provision and servicing of vehicles.
Risk Management
Risk management has been defined as “a continuous, proactive and systematic process, effected by MCLM’s
Council, Executive Mayor, Municipal Manager, senior management and other personnel, applied in strategic
planning and across the company, designed to identify potential events that may affect the municipality, and
manage risks to be within its risk tolerance, to provide reasonable assurance regarding the achievement of its
strategic objectives
174
Sections 62(1)(c)(i) and 95(c) of the MFMA requires that the Accounting Officer ensures that their institutions
have and maintain effective, efficient and transparent systems of risk management.
In implementing our risk management policy, the municipality considers the eight (8) components of the Risk
Management Framework which are the following:
The Internal Environment
Objectives Set
Risk Identification
Risk Assessment
Risk Response
Risk Monitoring
Risk Reporting
The Objectives of the Risk Management Policy are to:
- Support the achievement of objectives and ensure service delivery to all stakeholders;
- Protect the Municipality from those risks significant likelihood and impact on the pursuit of the Municipality’s
stated strategic goals and objectives;
- Provide a consistent risk management framework in which the risks concerning business processes and
functions of the municipality will be defined, considered and addressed in a structured manner;
- Encourage pro-active rather than re-active Management
- Provide assistance to and improve the quality of decision making throughout the Municipality
Procurement Services
Opportunities
Despite the shortage of staff all the reports were submitted to the relevant spheres of government. This year
implementation of Sub-Contracting of at least minimum 30 % where feasible as part of economic development
for the local Emerging Medium Enterprise (EME) and Qualifying Service Enterprise (QSE) was executed through
the turnkey projects (mostly infrastructure and construction projects). There are still challenges and lot of
improvement in terms of benefiting local business through sub-contracting will be done in 2018/2019 financial
year.
There were three local Service Providers who were successfully won the supply and delivery of material -
advertised bids and there were a lot of Sub-Contracting services to the local businesses example Housing –RDP
projects, Relief Programme Projects and other Infrastructure Development projects.
175
Challenges
The Organisational Structure of Supply Chain Management is not supporting the pillars of Supply Chain
Management or the performance of the Municipality. Key positions are vacant and MSCOA system is not yet
aligned with the operations in SCM. The plan is to implement the MSCOA system in the 2018/2019 financial
year.
The other challenge emanated due to cash flow constraints as lot of service providers especially SMMEs are no
more interested in making business with the Municipality due to long term awaiting payments.
T3.28.1
SERVICE STATISTICS FOR PROPERTY; LEGAL; RISK MANAGEMENT AND PROCUREMENT SERVICES
Service Statistics Legal A number of Agreements and Contracts were perused and drafted, and general legal work was done as part of the functions of the section. The section also assisted with six court cases against the municipality. Procurement The allocation of business to the SMME in Merafong was a challenge as there is no delegated department to account. Risk Management
In the year under review, the Enterprise Risk management plan was approved by the Accounting Officer and
was implemented to ensure the embedding of risk management in the day to day activities of the municipality.
The activities of the plan are fully achieved. The risk identification and assessment were done for both Strategic
and Operational risks. Therefore both Strategic and Operational risk registers were developed. Action plans
were then put in place to mitigate these risks and these are monitored quarterly to ensure that they don’t
impact negatively in the set objectives.
On a quarterly basis, risk management reports are submitted to the accounting officer for noting the activities
of risk management and to monitor the performance of the municipality in mitigating the risks also to satisfy
himself/herself that actions plans that are put in place are effective in addressing the risks. These reports also
serve in both the Risk Management and the Audit Committee. The Audit Committee also provided valuable
input in risk management processes in the organization. On a quarterly basis the Audit Committee Chairperson
prepares a report that serves in the Municipal Council.
The municipality has in line with the Regional Shared Service Model appointed a Risk Management Committee
Chairperson. The Chairperson is an independent external person who will give expert advice regarding Risk
Management processes in the Municipality. The committee is now functional and adds value in the functioning
of risk management in the organization. Risk Management reports are reviewed by the Risk Management
Committee to provide assurance in the reports prior to tabling at the Audit Committee.
176
It is only a few of the risks that were mitigated completely, either because they were short term in nature or
resources were available to address those risks. There has been a slow progress in the mitigation of risks this
financial year and these risks will roll over to the next financial year 2018/19.
In the partnership between the Office of the Premier ( Gauteng), Gauteng COGTA, The Ethics Institute (TEI) and
the municipality in what is called, The Municipal Integrity Project a lot has been achieved in the 2017/18
financial year. Training for Councilors on Code of Conduct for Councilors was undertaken. Workshops were
undertaken for staff members working in areas identified as risky. The Ethics Institute also accommodated the
Chief Risk Officer of Merafong to attend a training called the Ethics Officer Learning Programme. This course
entails a full week training which requires a Practicum and a Portfolio of Evidence to be submitted which is
processed by the University of Stellenbosch and thereafter an Ethics Officer certification if issued. The CRO of
Merafong has been certified as an Ethics Officer through the programme. During this financial year Merafong
was also awarded by the MEC of Gauteng COGTA for the achievement of important milestones in the Municipal
Integrity Programme.
The Ethics Institute (TEI) also conducted an Ethics Risk and Opportunity Assessment on behalf of Merafong
Local Municipality (MLM).The purpose of the ethics risk analysis was to identify and describe the organization’s
ethics risks as perceived by internal stakeholders. A mixed method approach (qualitative and quantitative) of
analysis was applied to assess the organization’s current ethics risks as perceived by employees. The ethics risk
survey was administered in Merafong City in both electronic and paper-based format between March and July
2017. The results and recommendations of this assessment will assist the municipality to focus on issues that
concern the employees and to enable the development of a strategy at specific problem areas.
3.2 Analysis of Strategic Risk Register
Depicted below is a trend analysis of the Strategic Risk Register for Merafong City Local Municipality for 3 years.
T 3.28.2
177
Property; Legal; Risk Management; and Procurement Services Policy Objectives Taken From IDP
Service Objectives Outline Service Targets 2015/16 2016/17 2017/18 2018/19
Target Actual Target Actual Target
Service Indicators *Previous
Year
*Previous
Year
*Current
Year
*Current
Year
*Current
Year
*Following
Year
Service Objective xxx
Property No objectives in terms of the IDP
Legal No objectives in terms of IDP
Risk Management 100% Implementation of the Enterprise Risk Management Plan
100% 100% 100% 100% 100% 100% 100% 100%
Procurement Services
Local Empowerment through Township Revitalization (Report will give progress on %spending of the municipalities budget with suppliers whose businesses are based within Townships)
% of RFQ and tenders awarded to Township service providers
12 12 12 12 12 12 12 12
Implementation of SCM policy and Regulations
No. of Quarterly reports on SCM policy implementation submitted to the MM
4 4 4 4 4 4 4 4
Compliance to Supply Chain Management policy and Regulations(As per MSCM Regulation 3 municipalities must review the implementation of SCM at least annually)
Annual Review of SCM Policy
1 1 1 1 1 1 1 1
Development of annual procurement plan Approved annual procurement plan
1 1 1 1 1 1 1 1
Effective logistics management(as per MSCM Regulation 39 requirement
Stocktaking report 1 1 1 1 1 0 0 0
T 3.28.3
178
16/17 17/18
Job Level Employees Posts Employees Vacancies(Fulltime equivalent)
Vacancies (as a % of total posts)
0-3 1 1 1 0 0
4-6 0 3 0 3 100 %
7-9 0 1 0 1 100 %
Total 1 5 1 4 80%
T 3.28.4
Financial Performance Year 2017/2018: Property; Legal; Risk Management and Procurement Services
R'000
Details
2016/2017 2017/2018
Actual Original Budget
Adjustment Budget
Actual Variance to Budget
Total Operational Revenue 0
Expenditure:
Employees 10555 8620 8620 7273 -19%
Repairs and Maintenance 0
Other 10709 5850 5850 6389 8%
Total Operational Expenditure 21264 14470 14470 13662 -6%
Net Operational Expenditure 21264 14470 14470 13662 -6%
T 3.28.5
Capital Expenditure Year 2017/2018: Property; Legal; Risk Management and Procurement Services
R' 000
Capital Projects
2017/2018
Budget Adjustment Budget
Actual Expenditure
Variance from original
budget
Total Project Value
Total All
NO CAPITAL PROJECTS
Project A
Project B
T 3.28.6
179
COMMENT ON THE PERFORMANCE OF PROPERTY SERVICES OVERALL:
While providing a service to external and internal clients the Section: Legal & Secretariat is managing to provide
the required service.
T 3.28.7
COMPONENT J: MISCELLANEOUS
This component includes: the provision of Airports, Abattoirs, Municipal Courts and Forestry as municipal
enterprises.
THE MUNICIPALITY DOES NOT RENDER THE ABOVE SERVICES (Airports, Abattoirs, Municipal Courts and
Forestry)
T 3.29.0
COMPONENT K: ORGANISATIONAL PERFOMANCE SCORECARD
This component includes: Annual Performance Scorecard Report for the current year.
The Audited Annual Performance Scorecard and the report for the current year is attached as Annexure ”B” of
this Annual Report and it should be noted that the municipality achieved an unqualified audit opinion on its
Annual Performance Report on predetermined objectives set for the year
180
CHAPTER 4 – ORGANISATIONAL DEVELOPMENT PERFORMANCE
(PERFORMANCE REPORT PART II)
INTRODUCTION
The Municipality through organization development is in an ongoing, systematic process of implementing
effective organizational change. This enhances and develop its ability to attract, recruit, develop and retain high
performing personnel. This will require more flexible high performing recruitment and required practice.
As part of this we develop clear standards for job roles profiles which are flexible and allowing responsibility for
the incumbent.
The Task Job Evaluation System to be used as a Workforce Planning sets for managers to assess the
performance of their function and plan for succession and change as appropriate.
To provide a safe and health working environment for all personnel staff.
To develop a more effective performance management system for employee within salary level 1 – 4 i.e. Line
Manager, Middle Managers and Supervisors.
To provide and ensure that there is equal access to training and development.
T 4.0.1
181
COMPONENT A: INTRODUCTION TO THE MUNICIPAL PERSONNEL
4.1 EMPLOYEE TOTALS, TURNOVER AND VACANCIES
2016/2017
EmployeesApproved
Posts
Employee
sVacancies Vacancies
No. No. No. No. %
Water/Waste water (Sanitation) 63 197 93 104 53%
Finance 34 113 74 39 35%
Electricity 68 125 70 55 44%
Waste Management 133 234 105 129 55%
Housing 11 24 11 13 54%
Waste Water (Stormwater Drainage) 0 0 0 0 0%
Roads/Stormwater 29 71 27 44 62%
Transport (Public Works) 19 120 74 46 38%
Planning 8 37 14 23 62%
Planning (Strategic & Regulatory) 3 3 2 1 33%
Local Economic Development 4 7 2 5 71%
Community & Social Services 187 172 115 57 33%
Environmental Protection 2 4 1 3 75%
Health 0 0 0 0 0%
Security and Safety 119 203 114 89 44%
Sport and Recreation 7 108 78 30 28%
Corporate Policy Offices and Other 181 198 98 100 51%
Totals 868 1616 878 738 45,67%
T 4.1.1
Employees
Description
2017/2018
182
Vacancy Rate: Year 2017/2018
Designations *Total Approved
Posts
*Vacancies (Total time that vacancies exist using fulltime equivalents)
*Vacancies (as a
proportion of total posts in
each category)
No. No. %
Municipal Manager 1 1 0
CFO 1 1 0
Other S57 Managers (excluding Finance Posts)
6 4 33%
Senior management: Level 1 (excluding Finance Posts) 23 16 30%
Senior management: Level 1 (Finance posts) 5 3 40%
Highly skilled supervision: levels 3-5 (excluding Finance posts) 51 46 9.8%
Highly skilled supervision: levels 3-5 Finance posts) 8 6 25%
Total 95 77 18.9%
T 4.1.2
Turn-over Rate
Details
Total Appointments as of beginning of Financial Year
Terminations during the Financial Year
Turn-over Rate*
No. No.
2015/2016 9 24 3%
2016/2017 10 87 10%
2017/2018 14 42 5%
T 4.1.3
183
COMMENT ON VACANCIES AND TURNOVER:
The municipality’s total labour turnover in all occupational levels for permanent staff amount to 4.8% of
the workforce total workforce of 854.
The reasons for termination are as a result of death, retirement and normal resignation of employees.
A process plan was developed to determine possible exits from the Municipality due to retirement and to make
provision for these possible exits in the recruitment planning.
T 4.1.4
COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE
INTRODUCTION TO MUNICIPAL WORKFORCE MANAGEMENT
The Municipality in compliance with provision of Employment Equity Act 55 1998, General Administrative
Regulations 2009 or on annual basis assess approved HR policies practices if there are any barriers identified.
Such barriers are then amended in the policy which has to be approved by Municipal Council.
The Municipal functional Local Labour Forum is currently implementing the labour relations Act 66 of 1995 in
resolving matters of mutual interest with the workforce.
T 4.2.0
184
4.2 POLICIES
HR Policies and Plans
Name of Policy Completed %
Reviewed %
Date adopted by council or comment on failure to adopt
1 Affirmative Action Yes 100% Contained in EE Plan
2 Attraction and Retention No 20% In process of development
3 Code of Conduct for employees Yes 100% Part of conditions of service
4 Delegations, Authorisation & Responsibility
Yes 80% Financial Delegations 30 June 2005
5 Disciplinary Code and Procedures Yes 100% Part of conditions of service
6 Essential Services Yes 100% Part of conditions of service
7 Employee Assistance / Wellness Yes 50% To be developed 30/06/2017
8 Employment Equity Yes 100% Contained in Employment Equity Plan
9 Exit Management Yes 80% Employee Practice
10 Grievance Procedures Yes 100% Part of condition of services (LRA)
11 HIV/Aids Yes 50% To be developed
12 Human Resource and Development Yes 60% 20 March 2013
13 Information Technology Yes 80% 27 March 2014
14 Job Evaluation Yes 50% 20 March 2014
15 Leave Yes 100% Part of condition of services
16 Occupational Health and Safety Yes 100% 20 March 2013 (ill health)
17 Official Housing Yes 80% In process to development
18 Official Journeys/Travel and Subsistence Yes 100% 20 March 2013
19 Official transport to attend Funerals Yes 100% Policy to be reviewed
20 Official Working Hours and Overtime Yes 80% 20 March 2013
21 Organisational Rights Yes 80% Part of conditions of service
22 Payroll Deductions Yes 100% Part of conditions of services
23 Performance Management and Development
No 10% To be developed after adoption of wage curve salary payment level 1-4 1/7/18
24 Recruitment, Selection and Appointments
Yes 80% 24 Nov 2014
25 Remuneration Scales and Allowances Yes 80% Part of conditions of service (SALGA)
26 Resettlement Yes 60% 20 November 2014
27 Sexual Harassment Yes 90% Part of condition of services(LRA)
28 Skills Development Yes 50% 29 October 2009
29 Smoking Yes 60% 7 December 2010
30 Special Skills Yes 60% 20 March 2013 (learnerships)
31 Work Organisation Yes 80% Part of conditions of services
32 Uniforms and Protective Clothing Yes 90% 30 September 2014
33 Other: Risk Management
34 Cellphone Yes 80% 30 September 2014
35 Fleet Management Yes 80% 30 September 2014
T 4.2.1
185
COMMENT ON WORKFORCE POLICY DEVELOPMENT:
Workplace policies are developed and reviewed as and when necessary in consultation with labour as
prescribed by the relevant pieces of labour legislation and signed collective agreements.
T 4.2.1.1
4.3 INJURIES, SICKNESS AND SUSPENSIONS
Number and Cost of Injuries on Duty
Type of injury Injury Leave Taken
Employees using injury
leave
Proportion employees using sick
leave
Average Injury
Leave per employee
Total Estimated
Cost
Days No. % Days R'000
Required basic medical attention only
5 1 20% 1 3246
Temporary total disablement
Total 5 1 20% 1 3246
T 4.3.1
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' 000
MM and S57 28 0.12% 7 7 4.00
Management (level 1-2) 154 0.10% 14 16 9.63
Highly Skilled Supervision (level 3-5)
536 0.15% 45 55 9.75
Highly Skilled Supervision (level 6-8)
1285 0.28% 156 165 7.79
Skilled Production (level 9-12) 1445 0.18% 207 248 5.83
Production (level 13-15) 1443 0.14% 234 796 1.81
Total 4891 0.16% 663 1287 3.80 0
T 4.3.2
186
T 4.3.3
COMMENT ON INJURY AND SICK LEAVE:
Special sick leave is taken in the case of injury on duty. An Occupational Health and Safety (OHS) Policy is in
place and displayed at all workplaces. All departments are required to follow this policy.
Regular OHS inspections and safety audits are carried out during the year to identify any new health and safety
risks. Departments were advised in terms of handling OHS matters. Training was done on a regular basis (e.g.
first aid and safety representative).
Accidents and injuries on duty were investigated in terms of relevant legislation. Sick leave was monitored by
sectional managers, and proper record was kept of all leave and sick leave taken. Where necessary, officials
may be sent to medical practitioners appointed by Council for second opinions in cases of extended sick leave.
T 4.3.4
Number and Period of Suspensions
Position Nature of Alleged Misconduct
Date of Suspension
Details of Disciplinary Action taken or Status of Case and Reasons why not Finalized
Date Finalized
Cashiers Gross dishonesty and gross negligence
July 2017
Disciplinary actions proceeding against five (5) employees. One (1) was finalized and one (1) resigned before the start of the disciplinary hearing
June 2018
T 4.3.5
187
Disciplinary Action Taken on Cases of Financial Misconduct
Position Nature of Alleged Misconduct and Rand value of any loss to the
municipality
Disciplinary action taken Date Finalized
Cashier Gross dishonesty and gross negligence
Disciplinary hearings are proceeding against five employees, one was finalized.
23 April and others are proceeding
T 4.3.6
COMMENT ON SUSPENSIONS AND CASES OF FINANCIAL MISCONDUCT:
Two (2) out of the seven (7) finance personnel, cashiers including the supervisor were suspended on the 15th
June 2017, during the course of the current financial year. The basis of their suspension is due to financial
misconduct (theft of money). Five (5) were reinstated not to their original positions and the disciplinary hearing
is still continuing.
T 4.3.7
4.4 PERFORMANCE REWARDS
Performance Rewards By Gender
Designations Beneficiary profile
Gender Total number of employees
in group
Number of beneficiaries
Expenditure on rewards
Year 1
Proportion of beneficiaries within
group
R' 000 %
Lower skilled (Levels 15-14) Female 103 0 0%
Male 239 0 0%
Skilled (Levels 13-10) Female 6 0 0%
Male 34 0 0%
Highly skilled production (levels 9-8)
Female 129 0 0%
Male 274 0 0%
Highly skilled supervision (levels 7-4)
Female 51 0 0%
Male 59 0 0%
Senior management (Levels 1) Female 9 0 0%
Male 11 0 0%
MM and S57 Female 3 3 0 100%
Male 3 3 0 100%
Total 921 6
Has the statutory municipal calculator been used as part of the evaluation process ? yes
T 4.4.1
188
COMMENT ON PERFORMANCE REWARDS:
Performance management system is only applied to Municipal Manager and Section 57 executive directors who
report directly to the Municipal Manager
T 4.4.1.1
COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE
INTRODUCTION TO WORKFORCE CAPACITY DEVELOPMENT
Annually, a skills gap analysis is conducted, Workplace Skills Plan developed, and training provided in terms
thereof. Employees are also continuously sent to workshops and seminars to improve their capacity.
T 4.5.0
189
4.5 SKILLS DEVELOPMENT AND TRAINING
Skills Matrix
Management level Gender Employees in post as at 30 June
17/18
Number of skilled employees required and actual as at 30 June 2017/2018
Learnerships Skills programmes & other short courses
Other forms of training Total
No.
Actual: End
of 16/17
Actual: End of 17/18
17/18 Target
Actual: End of 18/19
Actual: End of Year
17/18
17/18 Target
Actual: End
of 18/19
Actual: End of 17/18
17/18 Target
Actual: End of 18/19
Actual: End of 17/18
17/18 Target
MM and s57 Female 3 3 3 3 3 3 3
Male 3 3 3 3 3 3 3
Councillors, senior officials and managers
Female 34
Male 75
Technicians and associate professionals*
Female 49 6 6 6 3 3 12 23 23 23
Male 49 3 3 12 21 21 21
Professionals Female 129
Male 274
Sub total Female 215 6 6 3 12
Male 401 3 12
Total 1232 12 12 6 12 48 50 50 50 6 6 6
*Registered with professional Associate Body e.g CA (SA) T 4.5.1
190
Description A. Total number
of officials employed by municipality (Regulation 14(4)(a) and
(c))
B. Total
number of officials
employed by
municipal entities
(Regulation 14(4)(a) and
(c)
Consolidated: Total of A
and B
Consolidated: Competency assessments completed for A and B (Regulation 14(4)(b) and
(d))
Consolidated: Total number
of officials whose
performance agreements comply with
Regulation 16 (Regulation
14(4)(f))
Consolidated: Total number of
officials that meet prescribed
competency levels (Regulation
14(4)(e))
Financial Officials
Accounting officer
1 0 1 1 1 1
Chief financial officer
1 0 1 1 1 1
Senior managers
4 0 4 4 4 4
Any other financial officials
0 0 0 0 0
Supply Chain Management Officials
Heads of supply chain management units
0 0 0 0 0 0
Supply chain management senior managers
1 0 1 1 0 1
TOTAL 7 0 7 7 6 7
* This is a statutory report under the National Treasury: Local Government: MFMA Competency Regulations (June 2007) T 4.5.2
191
No. Original
Budget
Actual Original
Budget
Actual Original
Budget
Actual Original
Budget
Actual
Female
Male
Female
Male
Female
Male
Female
Male
Female
Male
Female
Male
Female
Male
Female
Male
1836 1497 1836 1497
Total 0 0 0 0 0 1836 1497 1836 1497
0,53% 347007
T4.5.3
Service and sales workers
MM and S57
Legislators, senior officials
and managers
Professionals
Technicians and associate
professionals
Clerks
Plant and machine
operators and assemblers
Elementary occupations
Sub total
*% and *R value of municipal salaries (original budget) allocated for workplace skills plan.
Management level Gender
Original Budget and Actual Expenditure on skills development Year 1
Learnerships Skills programmes
& other short
courses
Other forms of
training
Total
R'000
Employees
as at the
beginning
of the
financial
year
COMMENT ON SKILLS DEVELOPMENT AND RELATED EXPENDITURE AND ON THE FINANCIAL COMPETENCY
REGULATIONS:
Employees are trained as per the Workplace Skills Plan adopted by the employer in consultation with labour.
However, financial constraints continuously prevent the full implementation of all the skills development
needs. A concerted effort is made to ensure that all the relevant employees are trained to be compliant with
the MFMA Competency Regulations.
T 4.5.4
192
COMPONENT D: MANAGING THE WORKFORCE EXPENDITURE
INTRODUCTION TO WORKFORCE EXPENDITURE
All the expenditure incurred should be in line with the approved budget. When the staff establishment is
approved, provision is made in the budget for all the posts which can be filled and the time frames in respect
thereof. No unfunded posts may be filled. The municipality ensures that it recruits employees that are capable
of effectively rendering the service towards achieving its strategic goals.
T 4.6.0
4.6 EMPLOYEE EXPENDITURE
Source: MBRR SA22 T 4.6.1
COMMENT ON WORKFORCE EXPENDITURE:
Expenditure on the workforce is lower than the accepted standard. This is monitored; processes are also in
place to ensure critical vacancies are filled.
T 4.6.1.1
193
Number Of Employees Whose Salaries Were Increased Due To Their Positions Being Upgraded
Beneficiaries Gender Total
Lower skilled (Levels 1-2) Female No upgrading of positions for the financial year 17/18
Male No upgrading of positions for the financial year 17/18
Skilled (Levels 3-5) Female No upgrading of positions for the financial year 17/18
Male No upgrading of positions for the financial year 17/18
Highly skilled production (Levels 6-8)
Female No upgrading of positions for the financial year 17/18
Male No upgrading of positions for the financial year 17/18
Highly skilled supervision (Levels9-12)
Female No upgrading of positions for the financial year 17/18
Male No upgrading of positions for the financial year 17/18
Senior management (Levels13-16)
Female No upgrading of positions for the financial year 17/18
Male No upgrading of positions for the financial year 17/18
MM and S 57 Female No upgrading of positions for the financial year 17/18
Male No upgrading of positions for the financial year 17/18
Total 0
Those with disability are shown in brackets '(x)' in the 'Number of beneficiaries' column as well as in the numbers at the right hand side of the column (as illustrated above).
T 4.6.2
Employees Whose Salary Levels Exceed The Grade Determined By Job Evaluation
Occupation Number of employees
Job evaluation
level
Remuneration level
Reason for deviation
Job evaluation is not yet finalized, still in process.
T 4.6.3
Employees appointed to posts not approved
Department Level Date of
appointment No.
appointed Reason for appointment when no
established post exist
None
T 4.6.4
194
COMMENT ON UPGRADED POSTS AND THOSE THAT ARE AT VARIANCE WITH NORMAL PRACTICE:
• In terms of the policy of Council, no occupied post can be upgraded; therefore, no employees had their
salaries increased due to the positions upgraded.
• The job evaluation process has not been completed yet, and employees are paid in terms of the Industrial
Council determination. As soon as the job evaluation process has been finalised, the results thereof will be
considered for finalisation.
• No employees are appointed to posts not approved, and no employees are appointed to unfunded positions.
T 4.6.5
DISCLOSURES OF FINANCIAL INTERESTS
The disclosure of financial interest is done annually for Section 56 and Councillors and all Officials. Detailed
information contained in Appendix “J”.
T 4.6.6
195
CHAPTER 5 – FINANCIAL PERFORMANCE
INTRODUCTION
Chapter 5 contains information regarding financial performance and highlights specific accomplishments. The
chapter comprises of three components:
Component A: Statement of Financial Performance
Component B: Spending Against Capital Budget
Component C: Other Financial Matters
Council closed off with a deficit of R80.424 Million comparing to a budgeted deficit of R262.374 Million.
Council’s cash flow had deteriorated in 2016/2017.
Council’s liquidity ratio had deteriorated in 2016-2017.
The liquidation of Blyvooruitzicht mine had a detrimental effect on council’s collection performance.
Blyvooruitzicht mine is owing council R409 463 039 as at the end of June 2017 which represents 35%
of councils outstanding debt owed by consumers. Councils outstanding debtors as at 30 June 2017
stands at R1 175 098 984.
The cash flow constrains had resulted in that council had to implement serious cost cutting measures
and creditors were prioritised for payment.
Council were not be able to cover its fixed operating expenditure.
Council adopted a turn-around strategy to turn the financial situation around. Water and Electricity
losses remain a serious challenge. The municipality, like most municipalities in the country has faced
the usual challenges for the last three years in maintaining positive cash flows and administering
successful debtor collections.
Council’s average payment levels for the past twelve months were 73.90% comparing to 69.72% in
2015/2016.
The non-payment of services by consumers is a serious situation. Council needs an average payment
level of 87.50% to enable them to service its creditors.
The non-payment by consumers had resulted in that council had to increase its provision for doubtful
debt by R272 961 390 for the 2016-2017 financial year.
T 5.0.1
196
COMPONENT A: STATEME NTS OF FINANCIAL PERFORMANCE
INTRODUCTION TO FINANCIAL STATEMENTS
Note: Statements of Revenue Collection Performance by vote and by source are included at Appendix K.
Current Ratio
2014/15 2015/16 2016-2017
1:0.92 1:0.79 1: 0.73
Current ratio measures the ability of the Municipality to pay its current liabilities out of the current
assets. The industry usually looks for a ratio of 2:1, however the acceptable current ratio is1:1 for
municipalities. Council had achieved a ratio of 1:0.91 which shows councils ability to settle existing
short term liabilities.
Council is not in a position to settle its short-term liabilities as prescribed.
Council’s liquidity ratio had deteriorated in 2016-2017.
Outstanding debtors to Revenue Council experiencing serious financial constraints since the mines
had appealed against the valuation roll. This was completed. The valuation appeal board had ruled
that that the valuations of the mines had to be amended. It had serious financial implications for
council.
Council is applying for a review of the outcome of the valuation Appeal Board.
It was resolved that a supplementary valuation roll must be done. The mines once again are appealing
the outcome of the supplementary roll, although it was done in line with the valuation appeal boards
ruling.
The biggest concern is still the non - payment by Blyvooruitzicht mine. Blyvooruitzicht mine has been
liquidated in 2012.
The liquidation of Blyvooruitzicht mine had a detrimental effect on council’s collection performance.
Blyvooruitzicht mine is owing council R409 463 039 as at the end of June 2017 which represents 35%
of councils outstanding debt owed by consumers. Councils outstanding debtors as at 30 June 2017
stands at R1 175 098 984.
197
Creditors System Efficiency
The ratio gives an indication of average creditor’s payment period. The benchmark is 30 Days and is a
contravention of Section 65(2) (e) if creditors are not paid in 30 days
2014/15 2015/16 2016-2017
30 days 45 days 45 days
The cash flow constrains had resulted in that council had to implement serious cost cutting measures
and creditors were prioritised for payment. Council could pay its bulk suppliers of water and electricity
regular. See above
Employee costs
The ratio indicates a percentage of salary costs to total expenditure and this ratio could illustrate the
risk of salary costs being unmanageable.
2014/15 2015/16 2016-2017
27.6% 23.4% 21.04%
The decrease in the percentage of salary costs is as a result in that vacancies could not be filled due
to council’s cash flow challenges. Service delivery departments cannot render basic service deliveries.
Cost coverage
This ratio indicates the availability of cash plus short term investments to cover the monthly fixed
operating expenditure.
2014/15 2015/16 2016-2017
0.91 1.28 2.60
The industry norm is 2 times.
Repairs and Maintenance
Council could not maintain the level of repairs and maintenance or increase it comparing to 2013-
2014. The biggest council face at present is the lack of funding. Repairs and Maintenance are
performed on an emergency basis.
Maintenance plans cannot be executed. Roads are repaired when pot holes occurred.
An additional challenge council face is the vandalisation of councils assets, especially electricity
installations.
T 5.1.0
198
5.1 STATEMENTS OF FINANCIAL PERFORMANCE
Description
R thousands
Original Budget Budget
Adjustments
(i.t.o. s28 and s31
of the MFMA)
Final
adjustments
budget
Shifting of funds
(i.t.o. s31 of the
MFMA)
Virement
(i.t.o. Council
approved policy)
Final Budget Actual Outcome Unauthorised
expenditure
Variance Actual Outcome
as % of Final
Budget
Actual Outcome
as % of Original
Budget
Reported
unauthorised
expenditure
Expenditure
authorised in
terms of section
32 of MFMA
Balance to be
recovered
Restated
Audited
Outcome
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Financial Performance
Property rates 176 768 (5 885) 170 883 170 883 171 323 (440) 100,26% 96,92%
Service charges 718 244 (88 544) 629 700 629 700 624 718 4 983 99,21% 86,98%
Investment revenue 2 786 13 334 16 120 16 120 15 236 884 94,52% 546,95%
Transfers recognised - operational 251 910 (8 957) 242 953 242 953 372 536 (129 583) 153,34% 147,88%
Other own revenue 137 898 3 900 141 798 141 798 146 354 (4 555) 103,21% 106,13%
Total Revenue (excluding capital transfers and contributions)
1 287 607 (86 152) 1 201 455 – – 1 201 455 1 330 166
(128 711) 110,71% 103,31%
Employee costs (357 053) 9 488 (347 565) (347 565) (327 450) (20 115) 94,21% 91,71%
Remuneration of councillors (22 050) 12 (22 039) (22 039) (21 053) (985) 95,53% 95,48%
Debt impairment (243 350) (243 350) (243 350) (354 760) 111 410 145,78% 145,78%
Depreciation & asset impairment (106 226) (106 226) (106 226) (169 948) 63 722 159,99% 159,99%
Finance charges (12 400) (13 000) (25 400) (6 300) (31 700) (31 643) (57) 99,82% 255,19%
Materials and bulk purchases (442 000) 15 499 (426 501) (1 000) (427 501) (426 709) (792) 99,81% 96,54%
Transfers and grants – (7 300) (7 300) (204) (7 096) 2,80%
Other expenditure (299 005) 11 909 (287 097) 14 600 (272 497) (160 137) (112 360) 58,77% 53,56%
Total Expenditure (1 482 085) 23 907 (1 458 178) – – (1 458 178) (1 491 904) – 33 726 102,31% 100,66%
Surplus/(Deficit) (194 478) (62 245) (256 723) – – (256 723) (161 738) (94 985) 63,00% 83,17%
Transfers recognised - capital 125 759 92 139 217 897 217 897 178 023 39 874 81,70% 141,56%
Contributions recognised - capital & contributed assets – – –
Surplus/(Deficit) after capital transfers & contributions –
Share of surplus/ (deficit) of associate – – –
Surplus/(Deficit) for the year (68 720) 29 894 (38 826) – – (38 826) 16 285 39 874 -41,94% -23,70%
Capital expenditure & funds sources
Capital expenditure
Transfers recognised - capital 120 339 93 599 213 937 213 937 178 023 35 914 83,21% 147,94%
Public contributions & donations – – – –
Borrowing 2 500 2 500 2 500 1 992 508 79,66% 79,66%
Internally generated funds 1 460 1 460 1 460 1 111 349 76,07% 76,07%
Total sources of capital funds 124 299 93 599 217 897 – – 217 897 181 125 36 772 83,12% 145,72%
Cash flows
Net cash from (used) operating 32 087 31 354 63 440 63 440 59 493 3 947 93,78% 185,41%
Net cash from (used) investing (124 299) (93 599) (217 897) (217 897) (170 399) (47 498) 78,20% 137,09%
Net cash from (used) financing (4 888) – (4 888) (4 888) (5 977) 1 089 122,28% 122,28%
Cash/cash equivalents at the year end (450 797) (124 490) (575 287) (575 287) 89 561 (664 848) -15,57% -19,87%
Year 2017/2018 Year 2016-2017
T 5.1.1
199
Financial Performance of Operational Services
R '000
Description
2016/2017 2017/2018 2017/2018 Variance
Actual Original Budget
Adjustments Budget
Actual Original Budget
Adjustments Budget
Operating Cost
Water 39 853 (23 987) (65 273) (42 202) 43.16% -54.67%
Waste Water (Sanitation) (7 201) 23 112 20 573 23 357 1.05% 11.92%
Electricity – (46 666) (81 357) (15 243)
-206.15% -433.74%
Waste Management 2 368 11 827 9 395 593
-1894.44% -1484.28%
Housing 4 554
Component A: sub-total 39 575 (35 714) (116 663) (33 495) -6.62% -248.30%
Waste Water (Stormwater Drainage) (35 606) (35 582) (7 808) -356.02% -355.71%
Roads 66 794
Transport
Component B: sub-total 66 794 8 455 8 624 9 554 11.50% 9.73%
Planning 7 685 109 516 202 715 70 624 -55.07% -187.03%
Local Economic Development
Component B: sub-total 7 685 109 516 202 715 70 624 -55.07% -187.03%
Planning (Strategic & Regulatory) (94 238)
Local Economic Development 1 616
Component C: sub-total (92 622) – –
–
Community & Social Services 837 (68 403) (59 508) (65 553)
-4.35% 9.22%
Environmental Protection
Health
Security and Safety –
Sport and Recreation –
Corporate Policy Offices and Other 22 772 (82 574) (70 735) (108 666) 24.01% 34.91%
Component D: sub-total 23 609 (150 977) (130 242) (174 219) 13.34% 25.24%
Total Expenditure 45 042 (68 720) (35 566) (127 536) 46.12% 72.11%
T 5.1.2
200
COMMENT ON FINANCIAL PERFORMANCE:
Council closed off for the financial year with a deficit of R83,325 Million comparing to budgeted deficit of R262,374
Million.
Due to the low payment levels council provided for the provision for bad debt an amount of R327,490 Million.
Employee costs are R36,493 Million less than was budgeted for. This is as a result of decrease in the
Post-employment Medical Aid provision and vacancies that could not be filled.
Due to council’s financial situation council were not in a position to settle its creditors in 30 days. This had resulted in that
interest on arrear accounts amounting to R16,372 Million was accrued.
T5.1.3
5.2 GRANTS
Grant Performance
R' 000
Description
2016-2017
2017-2018 Year 0 Variance
Actual Budget Adjustments Budget
Actual Original Budget (%)
Adjustments Budget (%)
Operating Transfers and Grants
National Government: 164 665 167 619 167 619 166 254 99.19% 99.19%
Local Government Equitable Share 161 616 163 084 163 084 163 084 100.00% 100.00%
Finance Management 1 625 1 700 1 700 1 700 100.00% 100.00%
Municipal Systems Improvement 1 365 1 365 0.00% 0.00%
EPWP Incentive 1 424 1 470 1 470 1 470 100.00% 100.00%
Other transfers/grants [insert description]
Provincial Government: 96 908 80 920 98 110 98 110 121.24% 100.00%
Department of Sports, arts, culture and recreation 12 900 15 001 15 489 15 489 103.25% 100.00%
Agricultural and Rural Development 500 500 500 100.00% 100.00%
Cogta EPWP Incentive 500 500 500 500 100.00% 100.00%
Cogta GRAP 17 Compliance 1 500 0 0
Housing 64 919 55 474 55 474 85.45% 100.00%
Provincial Disaster Fund 82 008 26 147 26 147 0 100.00%
District Municipality: 1 650 – – –
HIV Programme 1 650
Other grant providers: – – – –
[insert description]
Total Operating Transfers and Grants 263 224 248 539 265 729 264 364
T 5.2.1
201
COMMENT ON OPERATING TRANSFERS AND GRANTS:
The Department of Human Settlement had allocated an amount of R23,282 Million for internal services. The
grant was received during February 2017 and the project could not be implemented due to time constrains.
T 5.2.2
Grants Received From Sources Other Than Division of Revenue Act (DoRA)
Details of Donor
Actual Grant 2016-2017
Actual Grant 2017-2018
2017-2018 Municipal Contribution
Date Grant terminates
Date Municipal contribution terminates
Nature and benefit from the grant received, include description of any contributions in kind
Parastatals
Nil
Foreign Governments/Development Aid Agencies
Nil
Private Sector / Organisations
Nil
Provide a comprehensive response to this schedule T 5.2.3
COMMENT ON CONDITIONAL GRANTS AND GRANT RECEIVED FROM OTHER SOURCES:
Council did not receive grants from other sources.
T 5.2.4
5.3 ASSET MANAGEMENT
INTRODUCTION TO ASSET MANAGEMENT
Council had fully implemented GRAP 17. Challenges still exist as councils infrastructure assets are not disclosed in a
recognised asset register. At present council are making use of excel to disclose the assets.
A grant was received to assist council to procure an integrated asset system
Councils financial position had deteriorated to such an extent that repairs and maintenance was only performed in
emergency cases.
Council could not allocate internal funds to execute capital programs. Council had to rely on grant funding.
T 5.3.1
202
TREATMENT OF THE THREE LARGEST ASSETS ACQUIRED YEAR 2017-2018
Asset 1
Name Roads and Stormwater
Description Resealing and rehabilitation of Roads
Asset Type Infrastructure Assets
Key Staff Involved Roads and Stormwater
Staff Responsibilities Management of Roads and Stormwater
Asset Value
2014-2015 2015-2016
2016-2017
2017-2018
13 100 251 1 739 494 2 167 193 2 073 276
Capital Implications Regular Maintenance
Future Purpose of Asset To ensure assets are used for its expected useful lifes
Describe Key Issues To ensure regular maintenance
Policies in Place to Manage Asset Asset Management Policy Adopted
Asset 2
Name Waste Water Treatment Plants
Description Maintenance of Waste Water Treatment Plants
Asset Type Infrastructure Assets
Key Staff Involved Water Care Works
Staff Responsibilities Maintenance of Waste Water Treatment Plants
Asset Value
2014-2015 2015-2016
2016-2017
2017-2018
4 852 493 1 662 947 2 891 228 1 032 906
Capital Implications Regular Maintenance
Future Purpose of Asset To ensure assets are used for its expected useful lifes
Describe Key Issues To ensure regular maintenance
Policies in Place to Manage Asset Asset Management Policy Adopted
Asset 3
Name Electricity network
Description Maintenance of Electricity distribution
Asset Type Infrastructure Assets
Key Staff Involved Electricity
Staff Responsibilities Maintenance of Electricity distribution
Asset Value
2014-2015 2015-2016
2016-2017
2017-2018
2 248 540 6 625 390 4 055 298 ,1,165,737
Capital Implications Regular Maintenance
Future Purpose of Asset To ensure assets are used for its expected useful lifes
Describe Key Issues To ensure regular maintenance
Policies in Place to Manage Asset Asset Management Policy Adopted
T 5.3.2
203
COMMENT ON ASSET MANAGEMENT:
Council adopted an asset management policy in the year under review. An asset management plan was
developed and will be implemented in terms of the approved policy. The challenge Council faces is to fund the
shortfall identified in the maintenance plan.
The biggest council face at present is the lack of funding. Repairs and Maintenance are performed on an
emergency basis.
Maintenance plans cannot be executed. Roads are repaired when pot holes occurred.
An additional challenge council face is the vandalisation of councils assets, especially electricity installations.
MBRR Table A9
T 5.3.3
Repair and Maintenance Expenditure: Year 2017-2018
R' 000
Original Budget Adjustment Budget Actual Budget variance
Repairs and Maintenance Expenditure 37768 34286 7486 80%
T 5.3.4
COMMENT ON REPAIR AND MAINTENANCE EXPENDITURE:
The biggest council face at present is the lack of funding. Repairs and Maintenance are performed on an emergency basis.
Maintenance plans cannot be executed. Roads are repaired when pot holes occurred.
An additional challenge council face is the vandalisation of councils assets, especially electricity installations.
T 5.3.4.1
204
5.4 FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS
T 5.4.1
205
T 5.4.2
206
T 5.4.3
207
T 5.4.4
208
T 5.4.5
209
T 5.4.6
210
T 5.4.7
T 5.4.8
211
COMMENT ON FINANCIAL RATIOS:
Council closed off with a deficit of R80.424 Million comparing to a budgeted deficit of R262.374 Million.
Council’s cash flow had deteriorated in 2016/2017.
Council’s liquidity ratio had deteriorated in 2016-2017.
The liquidation of Blyvooruitzicht mine had a detrimental effect on council’s collection performance. Blyvooruitzicht mine
is owing council R409 463 039 as at the end of June 2017 which represents 35% of councils outstanding debt owed by
consumers. Councils outstanding debtors as at 30 June 2017 stands at R1 175 098 984.
The cash flow constrains had resulted in that council had to implement serious cost cutting measures and creditors were
prioritised for payment.
Council were not be able to cover its fixed operating expenditure.
Council adopted a turn-around strategy to turn the financial situation around. Water and Electricity losses remain a
serious challenge. The municipality, like most municipalities in the country has faced the usual challenges for the last
three years in maintaining positive cash flows and administering successful debtor collections.
Council’s average payment levels for the past twelve months were 73.90% comparing to 69.72% in 2015/2016.
The non-payment of services by consumers is a serious situation. Council needs an average payment level of 87.50% to
enable them to service its creditors.
Council closed off with a deficit of R80.424 Million comparing to a budgeted deficit of R262.374 Million.
Council’s cash flow had deteriorated in 2016/2017.
Council’s liquidity ratio had deteriorated in 2016-2017.
The liquidation of Blyvooruitzicht mine had a detrimental effect on council’s collection performance. Blyvooruitzicht mine
is owing council R409 463 039 as at the end of June 2017 which represents 35% of councils outstanding debt owed by
consumers. Councils outstanding debtors as at 30 June 2017 stands at R1 175 098 984.
The cash flow constrains had resulted in that council had to implement serious cost cutting measures and creditors were
prioritised for payment.
Council were not be able to cover its fixed operating expenditure.
Council adopted a turn-around strategy to turn the financial situation around. Water and Electricity losses remain a
serious challenge. The municipality, like most municipalities in the country has faced the usual challenges for the last
three years in maintaining positive cash flows and administering successful debtor collections.
212
Council’s average payment levels for the past twelve months were 73.90% comparing to 69.72% in 2015/2016.
The non-payment of services by consumers is a serious situation. Council needs an average payment level of 87.50% to
enable them to service its creditors.
The non-payment by consumers had resulted in that council had to increase its provision for doubtful debt by R272 961
390 for the 2016-2017 financial year.
Council did not experience large number of billing complaints from consumers. Meters were read monthly and are
reasonable accurate.
Council could not approve a cash funded budget for the MTREF for the financial years 2016/2017 to 2018/2019.
COMMENT ON FINANCIAL RATIOS:
Current Ratio
2015/16 2016/17 2017-2018
1:0.79 1:0.73 1: 0.43
Current ratio measures the ability of the Municipality to pay its current liabilities out of the current assets. The industry
usually looks for a ratio of 2:1, however the acceptable current ratio is1:1 for municipalities. Council had achieved a ratio
of 1:0.91 which shows councils ability to settle existing short term liabilities.
Council is not in a position to settle its short-term liabilities as prescribed.
Council’s liquidity ratio had deteriorated in 2017-2018.
Outstanding debtors to Revenue.
Council experiencing serious financial constraints since the mines had appealed against the valuation roll. This was
completed. The valuation appeal board had ruled that that the valuations of the mines had to be amended. It had serious
financial implications for council.
Council is applying for a review of the outcome of the valuation Appeal Board.
It was resolved that a supplementary valuation roll must be done. The mines once again are appealing the outcome of the
supplementary roll, although it was done in line with the valuation appeal boards ruling.
Sibanye Gold is withholding its Rates and Taxes pending the outcome of the review.
The biggest concern is still the non - payment by Blyvooruitzicht mine. Blyvooruitzicht mine has been liquidated in 2012.
The liquidation of Blyvooruitzicht mine had a detrimental effect on council’s collection performance. Blyvooruitzicht mine
is owing council R501,210,343 as at the end of June 2018 which represents 35% of councils outstanding debt owed by
consumers. Councils outstanding debtors as at 30 June 2018 stands at R1,424,347,279.
213
Council could not effectively implement credit control in all areas of Merafong. Payment levels in the previous
disadvantage areas range from 8.49% in Khutsong to 52.83% in Wedela.
This ratio gives an indication of how liquid customer’s debtors are. The benchmark is 8.3%. The benchmark is exceeded.
The municipality needs to look at ways of improving their credit control. The average for the Municipality for the past two
years was 20.28% and 18.5% respectively.
Creditors System Efficiency
The ratio gives an indication of average creditor’s payment period. The benchmark is 30 Days and is a contravention of
Section 65(2) (e) if creditors are not paid in 30 days
2015/16 2016/17 2017-2018
45 days 45 days 25 days
The cash flow constrains had resulted in that council had to implement serious cost cutting measures and creditors were
prioritised for payment. Council could pay its bulk suppliers of water and electricity regular. See above
Council entered into a repayment agreements with Eskom and Rand Water during the financial year under review. This
has resulted that councils payables reduces substantially during the year.
Employee costs
The ratio indicates a percentage of salary costs to total expenditure and this ratio could illustrate the risk of salary costs
being unmanageable.
Employee costs totalled 22.6% of the total expenditure for the 2016/17 financial year. This ratio is maintained within the
limit of 30 %.
2015/16 2016/17 2017-2018
28.5% 24.5% 21.9%
The decrease in the percentage of salary costs is as a result in that vacancies could not be filled due to council’s cash flow
challenges. Service delivery departments cannot render basic service deliveries.
Cost coverage
This ratio indicates the availability of cash plus short term investments to cover the monthly fixed operating expenditure.
The purpose of this measure is to understand the level of financial risk should the municipality be under stress from a
collection and cash in-flow perspective. The Municipality aims to achieve at least one month’s cash coverage in the
medium term, and then gradually move towards two months coverage.
214
Council does not have sufficient cash to cover current liabilities.
2016/16 2016/17 2017-2018
0.96 2.04 0.84
The industry norm is 2 times.
Repairs and Maintenance
Council could not maintain the level of repairs and maintenance or increase it comparing to 2013-2014. The biggest
council face at present is the lack of funding. Repairs and Maintenance are performed on an emergency basis.
Maintenance plans cannot be executed. Roads are repaired when pot holes occurred.
An additional challenge council face is the vandalism of councils assets, especially electricity installations.
An additional challenge council face is the vandalism of councils assets, especially electricity installations. SA8 of the
MBRR.
T 5.4.9
COMPONENT B: SPENDING AGAINST CAPITAL BUDGET
INTRODUCTION TO SPENDING AGAINST CAPITAL BUDGET
Council achieved 83% of the adjustment budget for 2017/2018.
Relocation of Khutsong Reservoir and Related Bulk Infrastructure
Upon proceeding with the excavations for the reservoir foundations subsequent to resolving a previous extended delay
with an ESKOM bulk feeder cable running across the reservoir footprint, a void was exposed on 10 November 2017 at a
depth of approximately 2m below natural ground level on the western boundary of the reservoir footprint area. A
geotechnical investigation followed upon which a void of 3,1m long, 2,8m wide and 4,5m deep was observed with an
erosion tunnel extending towards the west. It was recommended for a dolomite stability investigation to be conducted in
the area surrounding the sinkhole in order to determine the extent of subsurface erosion and appropriate rehabilitation
methods to improve subsurface (founding) conditions.
On 6 December 2017 yet another 4m long, 2,4m wide and 2,6m deep sinkhole was reported with an erosion tunnel
extending towards the proposed caretakers house, approximately 5m south of a lesser 1.5m diameter sinkhole reported
on 11 October 2017 that has since been backfilled.
Rehabilitation of the sinkholes and soil stabilization which employed amongst others dynamic compaction methods under
supervision of competent geotechnical engineers followed to ensure that the best founding conditions under the
circumstances could be achieved. Since stabilization has to be done layer by layer, the process is time consuming and in
addition to the previous unforeseen delays ultimately caused the project now to be approximately 6 months behind
schedule.
Slow progress caused a commensurate low rate of expenditure leading to underspending of the grant
T 5.5.0
215
5.5 CAPITAL EXPENDITURE
T 5.5.1
216
5.6 SOURCES OF FINANCE
2016/2017
Actual Original
Budget (OB)
Adjustment
Budget
Actual Adjustment to
OB Variance
(%)
Actual to OB
Variance (%)
Source of finance
External loans 12838 2500 2500 1992 0,00% -20,32%
Public contributions and donations
Grants and subsidies 92869 120339 213937 178023 77,78% 47,93%
Other 8252 1460 1460 1110 0,00% -23,97%
Total 113959 124299 217897 181125 77,78% 3,64%
Percentage of finance
External loans 11,3% 2,0% 1,1% 1,1% 0,0% -557,9%
Public contributions and donations 0,0% 0,0% 0,0% 0,0% 0,0% 0,0%
Grants and subsidies 81,5% 96,8% 98,2% 98,3% 100,0% 1316,2%
Other 7,2% 1,2% 0,7% 0,6% 0,0% -658,2%
Capital expenditure
Water and sanitation 15309 4300 4250 4256 -1,16% -1,02%
Electricity 27104 2400 2480 2453 3,33% 2,21%
Housing 2700 2800 2685 3,70% -0,56%
Roads and storm water 63430 1500 1400 1486 -6,67% -0,93%
Other 8115 3500 3450 170245 -1,43% 4764,14%
Total 113958 14400 14380 181125 -2,22% 4763,84%
Percentage of expenditure
Water and sanitation 13,4% 29,9% 29,6% 2,3% 52,4% 0,0%
Electricity 23,8% 16,7% 17,2% 1,4% -150,1% 0,0%
Housing 0,0% 18,8% 19,5% 1,5% -166,8% 0,0%
Roads and storm water 55,7% 10,4% 9,7% 0,8% 300,2% 0,0%
Other 7,1% 24,3% 24,0% 94,0% 64,3% 100,0%
T 5.6.1
Capital Expenditure - Funding Sources: Year 2016/2017 to Year 2017/2018
2017/2018
Details
R' 000
217
COMMENT ON SOURCES OF FUNDING:
Provincial Treasury only allocated the Human Settlements grant in the latter part of the financial year. Council could not
fully implement human settlement projects as the transfer was only done in February 2017. The Department of Water
and Sanitation had allocated an R8 Million grant for the Relocation of Midblock Water pipelines to road reserves in Kokosi
that did not materialised. The grant was not transferred to Council.
Provincial Treasury withdrew the Human Settlements grant during September 2016 at the time when tenders were
already advertised causing the Khutsong Ext 5 Construction of Internal Water & Sewer Services project to be stopped.
Funding was however re-allocated and tenders re-advertised culminating in the appointment of contractors only in June
2017, too late to incur any construction progress related expenditure. A roll-over will therefore be applied for to ensure
that funding remain secured and that the municipality will be able to meet its commitments arising from the contractor
appointments.
T 5.6.1.1
5.7 CAPITAL SPENDING ON 5 LARGEST PROJECTS
Capital Expenditure of 5 largest projects*
R' 000
Name of Project
Current: 2017/2018 Variance: 2017/2018
Original Budget
Adjustment Budget
Actual Expenditure
Original Variance (%)
Adjustment variance (%)
Construction of Carletonville Waste Management Depot 23 410 27 878 30 283 -29% -19%
Kokosi Ext 6 Electrification 0 30 000 29 991 0 0
Internal Services (Khutsong Ext5 ) 0 26 241 24 310 0 0
Replacement of Khutsong Reservoir 20 000 26 807 15 459 23% -34%
Internal Services (Khutsong Ext5 ) 26 282 26 457 11 738 55% -1%
* Projects with the highest capital expenditure in Year 0
Name of Project - A Construction of Carletonville Waste Management Depot
Objective of Project Construction of Carletonville Waste Management Depot
Delays None
Future Challenges Maintenance
Anticipated citizen benefits Proper waste removal
Name of Project - B Kokosi Ext 6 Electrification
Objective of Project Kokosi Ext 6 Electrification
Delays None
Future Challenges Maintenance
Anticipated citizen benefits Provision of Elec to Kokosi Ext6
Name of Project - C Internal Services (Khutsong Ext5 )
218
Objective of Project Internal Services (Khutsong Ext5 )
Delays None
Future Challenges Maintenance
Anticipated citizen benefits Water and Sanitation to Khutsong 5 and 6
Name of Project - D Replacement of Khutsong Reservoir
Objective of Project Re placement of Khutsong reservoir
Delays None
Future Challenges Maintenance
Anticipated citizen benefits Provision of Water to Khutsong
Name of Project - E Internal Services (Khutsong Ext5 )
Objective of Project Internal Services (Khutsong Ext5 )
Delays None
Future Challenges Maintenance
Anticipated citizen benefits Water and Sanitation to Khutsong 5 and 6
T 5.7.1
COMMENT ON CAPITAL PROJECTS:
Council achieved 83% of the adjustment budget for 2017/2018. Relocation of Khutsong Reservoir and Related Bulk Infrastructure Upon proceeding with the excavations for the reservoir foundations subsequent to resolving a previous extended delay with an ESKOM bulk feeder cable running across the reservoir footprint, a void was exposed on 10 November 2017 at a depth of approximately 2m below natural ground level on the western boundary of the reservoir footprint area. A geotechnical investigation followed upon which a void of 3,1m long, 2,8m wide and 4,5m deep was observed with an erosion tunnel extending towards the west. It was recommended for a dolomite stability investigation to be conducted in the area surrounding the sinkhole in order to determine the extent of subsurface erosion and appropriate rehabilitation methods to improve subsurface (founding) conditions.
On 6 December 2017 yet another 4m long, 2,4m wide and 2,6m deep sinkhole was reported with an erosion tunnel extending towards the proposed caretakers house, approximately 5m south of a lesser 1.5m diameter sinkhole reported on 11 October 2017 that has since been backfilled. Rehabilitation of the sinkholes and soil stabilization which employed amongst others dynamic compaction methods under supervision of competent geotechnical engineers followed to ensure that the best founding conditions under the circumstances could be achieved. Since stabilization has to be done layer by layer, the process is time consuming and in addition to the previous unforeseen delays ultimately caused the project now to be approximately 6 months behind schedule. Slow progress caused a commensurate low rate of expenditure leading to underspending of the grant.
Provincial Treasury withdrew the Human Settlements grant during September 2016 at the time when tenders were already advertised causing the Khutsong Ext 5 Construction of Internal Water & Sewer Services project to be stopped. Funding was however re-allocated and tenders re-advertised culminating in the appointment of contractors only in June 2017, too late to incur any construction progress related expenditure. A roll-over will therefore be applied for to ensure that funding remain secured and that the municipality will be able to meet its commitments arising from the contractor appointments.
219
Council could spend only 75.4% of its MIG allocation, primarily due to poor performing consultants and contractors but similarly applicable to other grant funded projects to the extent that: Slow internal procurement processes were instrumental in the delayed award of contracts, and Community protests delaying progress.
Although the Khutsong South Construction of Road over Rail Bridge project was successfully completed, the withdrawal of Human Settlements funding for infrastructure projects left the municipality in a predicament since due to the funding shortage it cannot meet the outstanding financial commitments to the contractor amounting to ±R15.3 million.
There are benefits to be gained from appointment of Consultants on a turn-key basis in respect of the reduced period of time to get a contractor on site, but it transpired that unless a Consultant has the financial resources and exercise diligent financial and project management, the risk of failure becomes significant. Consultants subcontracting specialist services in order to fulfil obligations under a turn-key basis of appointment further adds unnecessary cost to the overall project costs, therefore consideration must be given in future to avoid consultancy appointments on a turn-key basis.
Khutsong Multi-Purpose Community Centre No variance between original and adjustment budget. Budget provision for future operation and maintenance must be made to comply with MIG funding conditions. Project is moving very slowly. Roll over application to be made for 2017/2018 financial year. Project is not yet been completed and there are budget issues that still need to be address.
Khutsong South Extensions Electrification Phase 5 Variance between original and adjustment budget caused by part of funding that was re-directed to the project from savings on another project. Future operation and maintenance to be covered by electricity department’s annual O&M budget. Relocation of Khutsong Reservoir with Bulk Infrastructure The project commenced on the 22 March 2017. Construction progress is very slow on the actual reservoir due to an Eskom cable and three sinkholes were encountered which crosses the footprint of the reservoir. The Eskom cable was re-routed and the contractor was 90% completed on the rehabilitation of the sinkhole. To expedite expenditure and to limit standing time, the contractor has elected to proceed with non-critical Works such as the boundary wall and Caretaker’s house. Due to the aforementioned delay the budget could not be spent and a request for the approval of a roll-over will be submitted to National Treasury. Khutsong South: Construction of Road over Rail Bridge No variance between original and adjustment budget. Rollover application lodged for previously unspent funds that comprised of the budget amount. The project is experiencing a funding shortfall primarily caused by the cost of standing time previously incurred on the project. An application for additional funding was requested from DHS in order for the municipality to settle the outstanding payments due to the contractor. Fochville Main Substation Upgrade The first phase of the project was completed on 30 June 2017 and handed over to the municipality. The variance between original and adjustment budget was caused by funding that was re-directed to the project from unspent funds on another project. The future operation and maintenance of the project to be covered by the electricity department’s annual O&M budget.
T 5.7.1.1
220
5.8 BASIC SERVICE AND INFRASTRUCTURE BACKLOGS – OVERVIEW
INTRODUCTION TO BASIC SERVICE AND INFRASTRUCTURE BACKLOGS
Water
The water services is experiencing the maintenance backlog due to rapid growth of informal settlements and there areas
in Khutsong that are affected by sinkhole formations whereby sewer pipelines collapsed and obstructed the flow that
eventually creates spillages within the households. The spillages are controlled by being vacuumed on daily basis.
Required resources for rendering the sanitation services not adequate due to lack of funds. The municipality’s financial
constraints are the main challenges to rendering quality services.
Sanitation
There backlog in sanitation are in informal settlements as indicated by the Census Community Survey. However the
survey does not specify the areas on concern, 71 341 households in formal areas are connected to the waterborne (flush
toilets) network whereas 7 953 households in informal settlements and privately owned land areas are serviced by means
of ventilated Improved toilets connected to the conservancy and dry system toilets are erected and vacuum tanker is
used to maintain the toilets. Informal and rural areas are growing and it impacts on the services. Despite this, all areas are
within the standard access.
Electricity
The municipality provides electricity to its area of jurisdiction through its license from the Energy Regulator of South
Africa. There are areas within the municipality that are licensed to ESKOM such as the mining housing farms in the urban
edge as well as the Old Khutsong Township.
Waste Management
Refuse removal service in informal Settlement is not been done this financial year 2017/2018 due to Municipal Financial
Constraints. Refuse removal strategy in informal settlement was developed and approved but not been implemented due
to the same reason of Municipal financial status.
Acquiring of 3 000 Wheelie bins is still outstanding for financial year 2017/2018 and will be implemented in new financial
year 2018/2019.
Housing
The Municipality as the developer in the Khutsong South Extensions Housing project of which the first phase of 5 500 top
structures and associated infrastructure is completed. Phase 2 consisting of 1 253 services and 500 top structures re in
construction with 500 serviced stands already completed. The Kokosi Ext 6 housing project in progress which will provide
for 2 138 top structures in accordance with the Housing Plan.
The Social Housing Project (Elijah Barayi) has also kick-started which will enhance the character of the Khutsong South
area. It is planned to accommodate 12 491 units and will address the needs of mostly the people who do not qualify for
government subsidies and those who want rental accommodation.
221
Economic Development
The economy of Merafong city is still dominated by the mining sector, which contributed over 50% to the GDP. Although
the mining sector is still dominant in the economy of the city, there has been a decline in both production and
contribution to GDP The municipality is focusing the diversification of the economy in order to sustain jobs and the
general growth in the economy.
Roads and Stormwater
The municipality has in previous years implemented roads projects which have reduced the backlog of unsurfaced roads
drastically in the townships of Kokosi and Greenspark respectively. That has assisted in installation of stormwater that
never existed as well. We are currently left with Khutsong township which is worse off in terms of unsurfaced roads,
however the MIG funding is providing for implementation on each financial year although it is not at the desired pace due
to the challenge at hand.
Although no bulk funding has been availed so far, business plans have been submitted to request funding from various
grant providers. The backlog relates to both roads and stormwater infrastructure. This has got a serious impact in
Khutsong township since it is a necessity in a dolomitic area to avoid any ponding of stormwater. That can be achieved
effectively on a surfaced road. Through the consultation with other spheres of government, the municipality still hopes to
find a better alternative that could assist in addressing the matter.
T 5.8.1
Service Backlogs as at 30 June Year 2018
Households (HHs)
*Service level above minimum standard
**Service level below minimum standard
No. HHs % HHs No. HHs % HHs
Water % %
Sanitation % %
Electricity 25289 94.82% 20810 100%
Waste management % %
Housing % %
T 5.8.2
Municipal Infrastructure Grant (MIG)* Expenditure Year 2017/18 on Service backlogs
222
R' 000
Details
Budget Adjustments Budget
Actual Variance Major conditions applied by donor (continue below if necessary)
Budget Adjust-ments Budget
Infrastructure - Road transport
Roads, Pavements & Bridges 22 957 25 966 25 679 11% -1%
Storm water Cost included above
Infrastructure - Electricity
Generation
Transmission & Reticulation
Street Lighting
Infrastructure - Water
Dams & Reservoirs
Water purification
Reticulation 10 000 7 700 5 225 -91% -47%
Infrastructure - Sanitation
Reticulation
Sewerage purification 2 934 3 203 3 185 8% -1%
Infrastructure - Other
Waste Management 35 883 34 498 34 271 -5% -1%
Transportation
Gas
Other Specify:
Economic Dev. Services 3 674 0 0
Sport and Recreation 2 219 4 300 7 797 72% 45%
PMU O&M 3 371 3 371 2 881 -17% -17%
% %
Total 81 038 79 038 79 039 -3% 0%
T 5.8.3
COMMENT ON BACKLOGS:
223
Infrastructure – Roads and Stormwater:
Grant funding availed towards the provision and improvement of roads and stormwater systems in previously
disadvantaged areas and for the development of the roads infrastructure in the new Kokosi Ext6 as well as Khutsong.
Wedela Ext3 roads and stormwater improvement is also in progress as a multi-year programme which is in its second
phase. Provision for public transport infrastructure (taxi ranks, loading zones) is also included in the utilization of the
funding.
Infrastructure – Electricity & Public Lighting:
The electrification of Koksi ext 99 aand Ext 6 is in progress. the Khutsong South Extensions electrification programme is at
Phase six with further outer year plans as the area develops. The planning for the improvement of bulk capacity in
Fochville and Welverdiend supply areas is at an advanced stage.
Funding for the provision of street lighting and the conversion of old street lighting systems towards more energy
efficient lighting has be applied for through the MIG Grant and shall be for the outer years.
Infrastructure - Water:
Funding availed towards improving supply to the Khutsong area with the construction of a new reservoir. The
improvement of the water supply to the Khutsong South Extensions shall be improved with the rehabilitation of the
Adatta Reseivior and associated pipelines. The construction of the internal services for Khutsong Ext5 & 6 also
commenced in the current financial year.
Infrastructure - Other:
Funding availed towards the improvement of the landfill site to comply with permit conditions. .
Construction of a Wast Management Depot as well as various informal trading area improvements were also undertaken
in the year under review..
T 5.8.4
COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS
INTRODUCTION TO CASH FLOW MANAGEMENT AND INVESTMENTS
Council has a Cash Management policy. Cash management is a key focus of Council. Council strives to cover fixed costs three times. A revenue enhancement strategy was adopted. Surplus funds are invested ensuring return on investments.
T 5.9
224
Year
2016/2017
Audited
Outcome
Original
Budget
Adjusted
BudgetActual
CASH FLOW FROM OPERATING ACTIVITIES
Receipts
Ratepayers and other 640 048 729 793 639 264 617 943
Government - operating 322 721 251 910 242 953 272 541
Government - capital 92 869 120 339 213 937 172 751
Interest 12 842 62 553 75 888 14 230
Dividends
Payments
Suppliers and employees (822 566) (1 120 109) (1 083 202) (986 328)
Finance charges (14 720) (12 400) (25 400) (31 643)
Transfers and Grants
NET CASH FROM/(USED) OPERATING ACTIVITIES 231 193 32 087 63 440 59 493
CASH FLOWS FROM INVESTING ACTIVITIES
Receipts
Proceeds on disposal of PPE (113 958) (124 299) (217 897) (170 399)
Decrease (Increase) in non-current debtors 5 800
Decrease (increase) other non-current receivables
Decrease (increase) in non-current investments 4 171
Payments
Capital assets
NET CASH FROM/(USED) INVESTING ACTIVITIES (103 987) (124 299) (217 897) (170 399)
CASH FLOWS FROM FINANCING ACTIVITIES
Receipts
Short term loans
Borrowing long term/refinancing (5 552) (4 888) (4 888) (5 977)
Increase (decrease) in consumer deposits
Payments
Repayment of borrowing
NET CASH FROM/(USED) FINANCING ACTIVITIES (5 552) (4 888) (4 888) (5 977)
NET INCREASE/ (DECREASE) IN CASH HELD 121 654 (97 100) (159 345) (116 882)
Cash/cash equivalents at the year begin: 84 789 206 444 206 444 206 444
Cash/cash equivalents at the year end: 206 444 109 344 47 099 89 561 Source: MBRR A7 T 5.9.1
Current: Year 2017/2018
Cash Flow Outcomes
R'000
Description
225
COMMENT ON CASH FLOW OUTCOMES:
Council’s cash flow had deteriorated in 2017/2018. The Cash and Equivalents disclosed in the financial statements are ring fenced for capital projects. Council experienced serious cash flow constraints in the latter part of the financial year. Council invested R50 Million with VBS Mutual bank in 2016/2017. The bank was liquidated and therefore council had to provide for a provision for bad debt for the amount. This has place council in a serious financial constrain. The funds were grant funding earmarked for capital projects. These projects were implemented and must now be financed from councils own funds. Council’s liquidity ratio had deteriorated in 2017-2018. Council had achieved a ratio of 1:0.48 which shows councils ability to settle existing short term liabilities. Council is not in a position to settle its short-term liabilities as prescribed. Council’s liquidity ratio had deteriorated in 2017-2018. The cash flow constrains had resulted in that council had to implement serious cost cutting measures and creditors were prioritised for payment. Council will not be able to cover its fixed operating expenditure
T5.9.1.1
5.10 BORROWING AND INVESTMENTS
INTRODUCTION TO BORROWING AND INVESTMENTS
Council invested R50 Million with VBS Mutual bank in 2016/2017. The bank was liquidated and therefore council had to
provide for a provision for bad debt for the amount. This has place council in a serious financial constrain. The funds were
grant funding earmarked for capital projects. These projects were implemented and must now be financed from councils
own funds.
T 5.10.1
226
Actual Borrowings: Year 2015/2016 to Year 2017/2018
R' 000
Instrument 2015/2016 2016/2017 2017/2018
Municipality 73420 68465 63033
Long-Term Loans (annuity/reducing balance)
Long-Term Loans (non-annuity)
Local registered stock
Instalment Credit 922 1597 957
Financial Leases
PPP liabilities
Finance Granted By Cap Equipment Supplier
Marketable Bonds
Non-Marketable Bonds
Bankers Acceptances
Financial derivatives
Other Securities
Municipality Total 74 342 70 062 63 990
Municipal Entities
Long-Term Loans (annuity/reducing balance)
Long-Term Loans (non-annuity)
Local registered stock
Instalment Credit
Financial Leases
PPP liabilities
Finance Granted By Cap Equipment Supplier
Marketable Bonds
Non-Marketable Bonds
Bankers Acceptances
Financial derivatives
Other Securities
Entities Total 0 0 0
T 5.10.2
227
50000500505010050150502005025050300503505040050450505005055050600506505070050750508005085050900509505100051050511005115051200512505130051350514005145051500515505160051650517005175051800518505190051950520005205052100521505220052250523005235052400524505250052550526005265052700527505280052850529005295053000530505310053150532005325053300533505340053450535005355053600536505370053750538005385053900539505400054050541005415054200542505430054350544005445054500545505460054650547005475054800548505490054950550005505055100551505520055250553005535055400554505550055550556005565055700557505580055850559005595056000560505610056150562005625056300563505640056450565005655056600566505670056750568005685056900569505700057050571005715057200572505730057350574005745057500575505760057650577005775057800578505790057950580005805058100581505820058250583005835058400584505850058550586005865058700587505880058850589005895059000590505910059150592005925059300593505940059450595005955059600596505970059750598005985059900599506000060050601006015060200602506030060350604006045060500605506060060650607006075060800608506090060950610006105061100611506120061250613006135061400614506150061550616006165061700617506180061850619006195062000620506210062150622006225062300623506240062450625006255062600626506270062750628006285062900629506300063050631006315063200632506330063350634006345063500635506360063650637006375063800638506390063950640006405064100641506420064250643006435064400644506450064550646006465064700647506480064850649006495065000650506510065150652006525065300653506540065450655006555065600656506570065750658006585065900659506600066050661006615066200662506630066350664006645066500665506660066650667006675066800668506690066950670006705067100671506720067250673006735067400674506750067550676006765067700677506780067850679006795068000680506810068150682006825068300683506840068450685006855068600686506870068750688006885068900689506900069050691006915069200692506930069350694006945069500695506960069650697006975069800698506990069950700007005070100701507020070250703007035070400704507050070550706007065070700707507080070850709007095071000710507110071150712007125071300713507140071450715007155071600716507170071750718007185071900719507200072050721007215072200722507230072350724007245072500725507260072650727007275072800728507290072950730007305073100731507320073250733007335073400734507350073550736007365073700737507380073850739007395074000740507410074150742007425074300743507440074450745007455074600
Year 2015/2016 Year 2016/2017 Year 2017/2018
R m
illio
n
Actual Borrowings
Municipality
T 5.10.3
228
Municipal and Entity Investments
R' 000
Investment* type
2015/2016 2016/2017 2017/2018
Actual Actual Actual
Municipality
Securities - National Government
Listed Corporate Bonds
Deposits - Bank 4171 0 0
Deposits - Public Investment Commissioners
Deposits - Corporation for Public Deposits
Bankers’ Acceptance Certificates
Negotiable Certificates of Deposit - Banks
Guaranteed Endowment Policies (sinking)
Repurchase Agreements - Banks
Municipal Bonds
Other
Municipality sub-total 4171 0 0
Municipal Entities
Securities - National Government
Listed Corporate Bonds
Deposits - Bank
Deposits - Public Investment Commissioners
Deposits - Corporation for Public Deposits
Bankers’ Acceptance Certificates
Negotiable Certificates of Deposit - Banks
Guaranteed Endowment Policies (sinking)
Repurchase Agreements - Banks
Other
Entities sub-total 0 0 0
Consolidated total: 4171 0 0
T 5.10.4
229
COMMENT ON BORROWING AND INVESTMENTS:
Council took up an external loan with Nedbank to finance capital projects. Council had reached its prudent limits. Council
cannot borrow anymore to fund capital projects.
Council had to with-drawn its investment with Standard Bank to assist with the shortfall in cash flow.
Council invested R50 Million with VBS Mutual bank in 2016/2017. The bank was liquidated and therefore council had to
provide for a provision for bad debt for the amount. This has place council in a serious financial constrain. The funds were
grant funding earmarked for capital projects. These projects were implemented and must now be financed from councils
own funds.
T 5.10.5
5.11 PUBLIC PRIVATE PARTNERSHIPS
PUBLIC PRIVATE PARTNERSHIPS
Council have not entered into any Public Private Partnership agreements.
T 5.11.1
COMPONENT D: OTHER FINANCIAL MATTERS
5.12 SUPPLY CHAIN MANAGEMENT
SUPPLY CHAIN MANAGEMENT
Council adopted a supply Chain Policy as prescribed in the MFMA. Bid Committees are functioning. No Councillors are
members of the bid committees.
The Auditor General recommended that, the municipality strengthens the Supply Chain Management control
environment, by conducting regular training to improve skills and keep up-to-date with the latest developments – this will
reduce possible irregular expenditure, as well as centralizing the supply chain management process within Merafong.
Merafong Municipality has positive progress in terms of the Supply Chain Management Regulation 2005, as the
Municipality implemented the sub-contracting on projects like RDP, Relief Programme Project and other Infrastructure
Development Projects.
T 5.12.1
230
5.13 GRAP COMPLIANCE
GRAP COMPLIANCE
Council had fully implemented all applicable GRAP Standards as required by the Accounting Standards Board.
T5.13.1
231
CHAPTER 6 – AUDITOR GENERAL AUDIT FINDINGS
Auditor General’s Report included as Annexure “C” of this report.
T 6.0.1
COMPONENT A: AUDITOR-GENERAL OPINION OF FINANCIAL STATEMENTS YEAR -1
6.1 AUDITOR GENERAL REPORTS YEAR 2016/2017 (PREVIOUS YEAR)
Auditor-General Report on Financial Performance Year 2016/2017
Status of audit report: The office of the Auditor- General issued an unqualified audit opinion for the year under review. Both financial performance and predetermined objectives were audited. The final report was issued on 30 November 2017. Details of the report are discussed in the next tables.
Non-Compliance Issues Remedial Action Taken
Expenditure management Money owed by the municipality was not always paid within 30 days as required by section by section 65(2)(e) of the MFMA.
Due to the cash flow situation it is not always possible to ensure payment is released within the 30 days period. Daily monitoring of available funds are done by the CFO. Arrangements are in place with suppliers. Payments are released as cash becomes available. Cost cutting measures were implemented together with a revenue enhancement strategy to improve council’s cash situation A turn-around strategy was developed in partnership with Provincial Treasury and COGTA
Expenditure management Effective steps were not taken to prevent irregular expenditure amounting to R29,158,270 as disclosed in the Annual Financial Statements, as required by section 62(1) (d) of the MFMA. All irregular expenditure was caused by contravention of section 19 (a) and section 36(1) of the supply chain management.
Management will ensure that the process around supply chain management is enhanced to prevent these instances from occurring. The amounts identified will be disclosed as irregular expenditure. Management and the auditor have agreed that the finding constitutes irregular expenditure and an amount of R29 158 270 will be disclosed, (This includes R12 878 724 which was identified by the municipality).
Effective steps were not taken to prevent fruitless and wasteful expenditure amounting to R16,371,945 as disclosed in the Annual Financial Statements, in contravention of section 62 (1) of the MFMA. All of the disclosed fruitless and wasteful expenditure was penalties and interest incurred due to late payments made to suppliers
Daily monitoring of available funds are done by the CFO. Arrangements are in place with suppliers. Payments are released as cash becomes available. Cost cutting measures were implemented together with a revenue enhancement strategy to improve council’s cash situation A turn-around strategy was developed in partnership with Provincial Treasury and COGTA
232
Consequence Management Allegations of financial misconduct laid against officials of the municipality were not investigated as required by section 171(4) (a) of the MFMA
Investigations were conducted. Disciplinary steps must be implemented for those indicated in the reports.
Procurement and Contract Management
Some of the goods and services of a transaction value above R200 000 were procured without inviting competitive bids, as required by SCM regulation 19(a).
Deviations were approved by the accounting officer even though it was not impractical to invite competitive bids, in contravention of SCM regulation 36(1).
The transaction identified should have gone through tender process. Management will ensure that the process around supply chain management is enhanced to prevent these instances from occurring. The amounts identified will be disclosed as irregular expenditure.
Awards were made to providers who were in the service of other state institutions or whose directors were in the service of the state institutions, in contravention of section 112 (j) of the MFMA and SCM regulation 44
Council relies on the declaration in terms of the MBD 4 submitted. Additional steps will have to be put in place to determine if the MBD 4 declaration is true.
Strategic Planning The SDBIP was revised during the year without approval of the of the council as required by SECTION 54 (1) of the MFMA
MCLM has developed a performance information framework in consultation with Cogta. This will be reviewed to ensure the fundamental of performance information as embedded in the FMPPI is incorporated and aligned in the MCLM framework. Management will ensure that all changes to SDBIP will be submitted for approval by council. The monitoring & evaluation committee will further verify on a timely basis that mechanisms for reporting on the achievement of strategic and operational objectives have been developed and adopted. Performance information plays a significant role in governance and accountability within the MCLM whilst performance reporting has been entrenched as an integral part of an effective accountability framework
233
Auditor-General Report on Service Delivery Performance: Year 2016/17
Audit Report Status:
Non-Compliance Issues Remedial Action Taken
NONE
T 6.1.2
COMPONENT B: AUDITOR-GENERAL OPINION YEAR 2017/18
6.2 AUDITOR GENERAL REPORT YEAR 2017/18
Auditor-General Report on Financial Performance Year 2017/2018
Status of audit report: The office of the Auditor- General issued an unqualified audit opinion for the year under
review. Both financial performance and predetermined objectives were audited. The final report was issued
on 30 November 2018. Details of the report are discussed in the next tables.
Non-Compliance Issues Remedial Action Taken
Expenditure management
Money owed by the municipality was not
always paid within 30 days as required by
section by section 65(2)(e) of the MFMA.
Due to the cash flow situation it is not always possible to ensure
payment is released within the 30 days period. Daily monitoring
of available funds are done by the CFO. Arrangements are in
place with suppliers. Payments are released as cash becomes
available. Cost cutting measures were implemented together with
a revenue enhancement strategy to improve council’s cash
situation
A turn-around strategy was developed in partnership with
Provincial Treasury and COGTA
Expenditure management
Effective steps were not taken to prevent
irregular expenditure amounting to
R22,456,631 as disclosed in the Annual
Financial Statements, as required by
section 62(1) (d) of the MFMA. All
irregular expenditure was caused by
contravention of section 19 (a) due to
competitive bidding processes and
regulation 36(1) on deviation process.
Management will ensure that the process around supply chain
management is enhanced to prevent these instances from
occurring.
An amount of R16,117,492 was identified in 2016/2017 which
relates to contracts that were awarded in 2016/2017 that affects
2017/2018 as well.
The irregular expenditure was referred to MPAC for investigation
in terms of Circular 68.
234
Effective steps were not taken to prevent
fruitless and wasteful expenditure
amounting to R24,680.024 as disclosed in
the Annual Financial Statements, in
contravention of section 62 (1) of the
MFMA. All of the disclosed fruitless and
wasteful expenditure was penalties and
interest incurred due to late payments
made to suppliers
Council entered into repayment agreements with Eskom, Rand
Water and major suppliers. Despite the agreement they continue
to raise interest on the outstanding accounts.
Daily monitoring of available funds are done by the CFO.
Arrangements are in place with suppliers. Payments are released
as cash becomes available. Cost cutting measures were
implemented together with a revenue enhancement strategy to
improve council’s cash situation
A turn-around strategy was developed in partnership with
Provincial Treasury and COGTA.
Asset Management
Investment on VBS Mutual Bank was not
made in accordance with the municipality
investment policy as required by
municipal regulation 3(3)
Council had resolved to request the MEC for Finance to institute a
forensic investigation.
Funds were invested in VBS Mutual bank
in contravention of municipal investment
regulation 6
Council had resolved to request the MEC for Finance to institute a
forensic investigation.
Auditor-General Report on Service Delivery Performance: Year 2017/18*
Status of audit report**:
Non-Compliance Issues Remedial Action Taken
NONE
T 6.2.2
AUDITOR GENERAL REPORT ON THE FINANCIAL STATEMENTS: YEAR 2017/18
Auditor General’s Report included as Annexure C of this Annual Report T 6.2.3
COMMENTS ON AUDITOR-GENERAL’S OPINION YEAR 2017/18: The Auditor General audited the 2017/18 financial statements and the municipality has once again received an unqualified audit opinion with matters of emphasis. The Auditor General has raised issues pertaining to material uncertainty relating to going concern, material impairment, material losses and material uncertainties on various lawsuits.
235
The material impairments are as a result of the low collection rate on debtors. Material water losses are mainly due to deterioration of water reticulation system, burst pipes and unauthorised consumption. Business plans have been submitted to request funding in order to address the water infrastructure. Material electricity losses are due to unauthorised consumption, tampering and faulty meters. Material uncertainties are as a result of the various lawsuits that the municipality is a defendant on. The outcome of these maters cannot be presently be determined, and reliably measured, and therefore no provision for any liabilities was made in the financial statements. The Auditor General further audited the annual performance report and the key focus was on Goal 1: Basic Service Delivery. No material findings were raised on the usefulness and reliability of the reported performance information as the misstatements were corrected by management. The additional issues raised by the Auditor – General relating to the audit of compliance with legislation will also be addressed in the Operation Clean Audit Plan (OPCA). Irregular expenditure incurred during the 2017/18 financial year is as a result of the appointments that were previously made for fuel and repairs and maintenance of vehicles. Fruitless and wasteful expenditure amounting to R24 680 024 was a result of interest on overdue accounts charged by creditors. Payment arrangements were entered into with various creditors and interest on arrears was levied even though the payment arrangements were honoured in full. Council resolved that Gauteng Provincial Treasury should institute a forensic investigation on the investment made with VBS Mutual Bank. As at the date of the Auditor General’s report, the outcome of the investigation was still outstanding.
T 6.2.4
COMMENTS ON MFMA SECTION 71 RESPONSIBILITIES: Section 71 of the MFMA requires municipalities to return a series of financial performance data to the National Treasury at specified intervals throughout the year. The Chief Financial Officer states that these data sets have been returned according to the reporting requirements. Signed (Chief Financial Officer)………………………………………………………..... Dated
T 6.2.5
236
GLOSSARY
Accessibility indicators Explore whether the intended beneficiaries are able to access services or outputs.
Accountability documents
Documents used by executive authorities to give “full and regular” reports on the matters under their control to Parliament and provincial legislatures as prescribed by the Constitution. This includes plans, budgets, in-year and Annual Reports.
Activities The processes or actions that use a range of inputs to produce the desired outputs and ultimately outcomes. In essence, activities describe "what we do".
Adequacy indicators The quantity of input or output relative to the need or demand.
Annual Report A report to be prepared and submitted annually based on the regulations set out in Section 121 of the Municipal Finance Management Act. Such a report must include annual financial statements as submitted to and approved by the Auditor-General.
Approved Budget The annual financial statements of a municipality as audited by the Auditor General and approved by council or a provincial or national executive.
Baseline Current level of performance that a municipality aims to improve when setting performance targets. The baseline relates to the level of performance recorded in a year prior to the planning period.
Basic municipal service A municipal service that is necessary to ensure an acceptable and reasonable quality of life to citizens within that particular area. If not provided it may endanger the public health and safety or the environment.
Budget year The financial year for which an annual budget is to be approved – means a year ending on 30 June.
Cost indicators The overall cost or expenditure of producing a specified quantity of outputs.
Distribution indicators The distribution of capacity to deliver services.
Financial Statements Includes at least a statement of financial position, statement of financial performance, cash-flow statement, notes to these statements and any other statements that may be prescribed.
General Key performance indicators
After consultation with MECs for local government, the Minister may prescribe general key performance indicators that are appropriate and applicable to local government generally.
Impact The results of achieving specific outcomes, such as reducing poverty and creating jobs.
Inputs All the resources that contribute to the production and delivery of outputs. Inputs are "what we use to do the work". They include finances, personnel, equipment and buildings.
Integrated Development Plan (IDP)
Set out municipal goals and development plans.
National Key performance areas
Service delivery & infrastructure Economic development Municipal transformation and institutional development Financial viability and management Good governance and community participation
Outcomes The medium-term results for specific beneficiaries that are the consequence of achieving specific outputs. Outcomes should relate clearly to an institution's strategic goals and objectives set out in its plans. Outcomes are "what we wish to achieve".
237
Outputs The final products, or goods and services produced for delivery. Outputs may be defined as "what we produce or deliver". An output is a concrete achievement (i.e. a product such as a passport, an action such as a presentation or immunization, or a service such as processing an application) that contributes to the achievement of a Key Result Area.
Performance Indicator Indicators should be specified to measure performance in relation to input, activities, outputs, outcomes and impacts. An indicator is a type of information used to gauge the extent to which an output has been achieved (policy developed, presentation delivered, service rendered)
Performance Information
Generic term for non-financial information about municipal services and activities. Can also be used interchangeably with performance measure.
Performance Standards: The minimum acceptable level of performance or the level of performance that is generally accepted. Standards are informed by legislative requirements and service-level agreements. Performance standards are mutually agreed criteria to describe how well work must be done in terms of quantity and/or quality and timeliness, to clarify the outputs and related activities of a job by describing what the required result should be. In this EPMDS performance standards are divided into indicators and the time factor.
Performance Targets: The level of performance that municipalities and its employees strive to achieve. Performance Targets relate to current baselines and express a specific level of performance that a municipality aims to achieve within a given time period.
Service Delivery Budget Implementation Plan
Detailed plan approved by the mayor for implementing the municipality’s delivery of services; including projections of the revenue collected and operational and capital expenditure by vote for each month. Service delivery targets and performance indicators must also be included.
Vote: One of the main segments into which a budget of a municipality is divided for appropriation of money for the different departments or functional areas of the municipality. The Vote specifies the total amount that is appropriated for the purpose of a specific department or functional area. Section 1 of the MFMA defines a “vote” as: a) one of the main segments into which a budget of a municipality is divided for the appropriation of money for the different departments or functional areas of the municipality; and b) which specifies the total amount that is appropriated for the purposes of the department or functional area concerned
| APPENDICES 238
APPENDICES
APPENDIX A – COUNCILLORS; COMMITTEE ALLOCATION AND COUNCIL ATTENDANCE
Council Members Full Time / Part Time
Committees Allocated *Ward and/or Party Represented
% Council Meetings Attendance
% Apologies for non-attendance
FT /PT % %
N BEST FT LED, Tourism, Community Development
PR5 ANC 100.00 0.00
C CAPKEY PT Human Settlement and Land Development
PR5 DA 94.74 0.00
MD DLHAMINI FT Water, Electricity and Gas Ward 25 ANC 89.47 10.53
WA FIHLA PT LED, Tourism, Community Development
PR7 DA 73.68 26.32
N GCWALANGOBUTHI PT Public Safety and Transport PR1 UDM 57.89 42.11
L ISHERWOOD PT LED, Tourism, Community Development/Roads, Stormwater & Public Works
Ward 17 DA 73.68 21.05
MP LEFAKANE PT Sport, Recreation, Arts and Culture
PR5 EFF 5.26 84.21
MA LEGABE PT Water, Electricity and Gas/LED, Tourism, Community Development
PR3 EFF 78.95 21.05
EM LEKOPA FT Health & Social Development
Ward 18 ANC 78.95 15.79
MB LEPHUTING FT Integrated Environmental Management
PR4 ANC 89.47 10.53
MS LINKS PT Health & Social Development/Corporate and Shared Services/Finance
Ward 3 ANC 94.74 0.00
BR MAFIKA PT Public Safety and Transport/Roads, Stormwater & Public Works
Ward 4 ANC 84.21 15.79
MA MALIBE PT Health & Social Development/Human Settlement & Land Development
Ward 9 ANC 78.95 21.05
JT MALIBE PT Public Safety and Transport PR2 EFF 5.26 84.21
NH MALINGA PT Integrated Environmental Management
PR6 EFF 63.16 31.58
MZ MASHANGOANE
PT
Health & Social Development/Roads,
PR2
DA
84.21
0.00
| APPENDICES 239
Stormwater & Public Works
MN MATSHE FT Public Safety and Transport Ward 10 ANC 100.00 0.00
WM MBABA PT Corporate & Shared Services/Water, Electricity & Gas/LED, Tourism, Community Development
Ward 11 ANC 84.21 15.79
N MCETYWA PT Public Safety & Transport/Roads, Stormwater & Public Works/LED, Tourism, Community Development
Ward 5 ANC 78.95 15.79
LA MGANU PT Sports, Recreation, Arts & Culture
Ward 15 ANC 73.68 26.32
VG MHANI PT Integrated Environmental
Management PR EFF 41.67 5833
NC MNGXEKEZA-MASELA
PT LED, Tourism, Community Development
PR7 DA 41.67 58.33
TM MNQANDI PT Water, Electricity & Gas/LED, Tourism, Community Development/Finance
Ward 2 ANC 94.74 0.00
MF MOEKETSI-MOTHOLO
PT Public Safety & Transport/Health & Social Development/Integrated Environmental Management
Ward 23 ANC 63.16 31.58
SM MOGALE-LETSIE FT Executive Mayor PR1 ANC 10.53 0.00
T MOKUKE
PT Corporate & Shared Services/LED, Tourism, Community Development/Finance
Ward 12 ANC 84.21 15.79
MJ MOLOKELE PT Water, Electricity &
Gas/Finance PR1 DA 100.00 0.00
WT MOSIANE FT Chief Whip PR2 ANC 78.95 21.05
JT MOTHIBI PT PR3 DA 89.47 10.53
M MOYENI FT Human Settlement & Land Development
PR3 ANC 73.68 26.32
TE MPHITHIKEZI FT Speaker PR7 ANC 84.21 10.53
BA MPEKE
PT Public Safety & Transport/Water, Electricity & Gas
Ward 26 ANC 73.68 26.32
IE MUKWEVHO PT Roads, Stormwater & Public
Works PR1 EFF 57.89 36.84
KL NABISO PT Human Settlement PR EFF 59.55 45.45
M NAKI PT Corporate & Shared Services/Roads, Stormwater & Public Works
Ward 27 ANC 73.68 26.32
JM NDOBATHA PT Human Settlement & Land Development
PR9 EFF 42.11 47.37
| APPENDICES 240
M NGQELE
FT Corporate & Shared Services Ward 20 ANC 47.37 47.37
DC NIEUWENHUYZEN PT Corporate & Shared Services/Sports, Recreation, Arts & Culture
Ward 16 DA 73.68 21.05
MB NKABINDE PT Public Safety & Transport/Integrated Environmental Management
Ward 8 ANC 89.47 10.53
MP NKUTHA PT Public Safety & Transport/Water, Electricity & Gas/Sports, Recreation, Arts and Culture
Ward 7 ANC 94.74 5.26
VB NKWANYANA PT Water, Electricity & Gas/LED, Tourism, Community Development
PR1 IFP 63.16 31.58
JT PHOOKO PT Sports Recreation Arts and Culture
PR1 AIC 78.95 21.05
MW RAMODUPI PT Human Settlement & Land Development/Water, Electricity & Gas
PR6 DA 84.21 10.53
CMD REBELO PT Public Safety & Transport/Corporate Support & Shared Services
Ward 28 DA 89.47 5.26
NP SALANE PT Human Settlement & Land Development/Finance/Roads, Stormwater & Public Works
Ward 24 ANC 47.37 5.26
MB SELELALE PT Health & Social
Development PR8 EFF 73.68 21.05
GM SELLO FT Roads, Stormwater & Public
Works Ward 1 ANC 68.42 21.05
ML SKOSANA FT Sports, Recreation, Arts &
Culture Ward 22 ANC 78.95 21.05
F SONTSHWAYO
PT Water, Electricity & Gas/Sports, Recreation, Arts & Culture/Integrated Environmental Management
Ward 13 ANC 78.95 10.53
DV TABANE FT Finance PR6 ANC 94.74 5.26
MP TELEKO PT Corporate & Shared Services PR4 EFF 73.68 21.05
SJ TLHAPI
PT Public Safety & Transport/Integrated Environmental Management
PR4 DA 84.21 15.79
NA TSOTETSI FT Chairperson: MPAC Ward 6 ANC 78.95 15.79
TE TSOTETSI PT Finance PR7 EFF 54.55 45.45
VM TYELINGANE PT Health & Social Development/Human Settlement & Land Development/Integrated Environmental Management
Ward 19 ANC 63.16 31.58
| APPENDICES 241
B VAN DER BERG PT Public Safety & Transport/Finance/Roads, Stormwater & Public Works
PR1 VFP 94.74 5.26
A VENTER PT Health & Social Development/Sports, Recreation, Arts & Culture
Ward 14 DA 68.42 31.58
JDW ZWART PT Finance/Integrated Environmental management
Ward 21 DA 84.21 15.79
| APPENDICES 242
APPENDIX B – COMMITTEES AND COMMITTEE PURPOSES
Committees (other than Mayoral / Executive Committee) and Purposes of Committees
Municipal Committees Purpose of Committee
Mayoral Committee Advice the Executive Mayor
Section 80 Committees Consider reports of departments and submit recommendations to the Executive Mayor
Audit Committee To perform an oversight role
MPAC Committee - Section 79 Committee Oversight role on the activities of Council as well as an Oversight role on the Annual Report
Organisational Performance Management Committee - Section 79 Committee
Oversight role on the Organisational Performance of the Council
T B1
Committees (other than Mayoral / Executive Committee) and Purposes of Committees
Municipal Committees Purpose of Committee
Audit Committee - Mr. B Ahmed CA (SA) (Chairperson)
- Mr. T Nemadzhilili
- Mr. L Malinga
- Adv. Adri Peter Pekalski
- Mr. L Mangquku CA (SA)
Section 166(2) of the MFMA regulates the functions of the Audit Committee, its powers, composition and frequency of meetings, as it seeks to provide minimum requirements to be complied with. The Audit Committee is an independent advisory body to the municipal council, the political office-bearers, the accounting officer and the management and staff of the municipality, or board of directors, the accounting officer and the management staff of the municipal entity. It is primarily responsible for oversight over the organization’s governance, legislative compliance, control and risk management processes.
Performance Audit Committee - Mr. M Mongalo (Chairperson) - Mr. B Ahmed CA (SA) - Mr. A Mangokwana - Mr. P Fourie CA (SA) - Dr. R Govender
Regulation 14(2) (a) of the Municipal Planning and Performance Management Regulations, 2001 requires that each Municipality must annually appoint and budget for the Performance Audit Committee. Regulation 14(4) (a) of the Municipal Planning and Performance Management Regulations, 2001 states functions and responsibilities of the Performance Audit Committee. The primary objective of the Performance Audit Committee is to exercise oversight over the West Rand municipalities’ performance and performance management processes.
MPAC Committee – Section 79 Committee
Oversight role on the activities of Council as well as an oversight role on the Annual Report
T B
| APPENDICES 243
APPENDIX C –THIRD TIER ADMINISTRATIVE STRUCTURE
Third Tier Structure
Directorate Director/Manager (State title and name)
CORPORATE SUPPORT AND SHARED SERVICES
Manager Employment Equity Mr G Motaung
Industrial Relations Mr SB Mazibuko
Information Communications and Technology Mr S Segone:
Human Capital Mr NJ Rabotapi(Acting)
Corporate Marketing and Communications Ms B Mkhontwana (Acting)
FINANCE
Budget and Treasury and Expenditure: Mr TG Wienekus
Manager Revenue and Credit Control: Mr D Schmidt (Acting)
Supply Chain Management Ms J Magongwa
CHIEF OPERATIONS OFFICE
Risk Management Ms E Segakweng-Diale
Programme Management Office Ms E Ngamashe (Acting)
Integrated Development and Planning Vacant
COMMUNITY SERVICES
Social Development Ms BI Seatlholo
Waste Management Vacant
Public Safety Mr P Olivier (Acting)
ECONOMIC DEVELOPMENT AND PLANNING
Housing and Administration Mr L Jofile
Spatial Planning Ms J Smith
Local Development and Planning Vacant
INFRASTRUCTURE DEVELOPMENT
Electrical Services Mr E Shange
Water and Sanitation Ms L Moelane(Acting)
Public Works Ms N Moyo
Project Management Unit Mr D Venter
TC
| APPENDICES 244
APPENDIX D – FUNCTIONS OF MUNICIPALITY / ENTITY
MUNICIPAL FUNCTIONS Function Applicable to
Municipality (Yes / No)*
Function
Applicable to
Entity
(Yes / No)
Constitution Schedule 4, Part B functions:
Air pollution
Building regulations
Child care facilities
Electricity and gas reticulation
Firefighting services
Local tourism
Municipal airports
Municipal planning
Municipal health services
Municipal public transport
Municipal public works only in respect of the needs of municipalities in the
discharge of their responsibilities to administer functions specifically assigned to
them under this Constitution or any other law
Pontoons, ferries, jetties, piers and harbours, excluding the regulation of
international and national shipping and matters related thereto
Stormwater management systems in built-up areas
Trading regulations
Water and sanitation services limited to potable water supply systems and domestic
waste-water and sewage disposal systems
Beaches and amusement facilities
Billboards and the display of advertisements in public places
Cemeteries, funeral parlours and crematoria
Cleansing
Control of public nuisances
Control of undertakings that sell liquor to the public
Facilities for the accommodation, care and burial of animals
Fencing and fences
Licensing of dogs
Licensing and control of undertakings that sell food to the public
Local amenities
Local sport facilities
Markets
Municipal abattoirs
Municipal parks and recreation
Municipal roads
Noise pollution
Pounds
Public places
Refuse removal, refuse dumps and solid waste disposal
Street trading
Street lighting
Traffic and parking
T D
Municipal / Entity Functions
* If municipality: indicate (yes or No); * If entity: Provide name of entity
| APPENDICES 245
APPENDIX E – WARD REPORTING
WARDS Name OF Ward Councilor and ward committee member’s
Committee Establish
Number of committee meeting held during the year
Number of monthly reports submitted to speakers office on time
Number of quarterly public ward meetings held during the year
01 Cllr G.M SELLO Yes 12 12 4
MOTAU TSHABO KITTAH
MOTSUMI TOKO ALFRED
LEFIFI KGOSIETSILE
MUNYAI MASELLO LETTIE
BADUKANYE ITHUMELENG BEN
ZIBI LEBOGANG JOSEPH
MOLELEKI SKEINKY JOHANNAH
NTSANE MADINEO
FOSE JULIA
02 T.M MNQANDI Yes 12 12 4
MDEMKA ABRAM
SIBANDA LEBO
MBELE MADIKGANG
MGQUBA DALIWONGA
NGOKUHLWA NTSIKELELO
MASILO MOTLALEPULE
MOSOCHE NKAKI
SAKATI MARIA
KHALA NOMATHAMSANQA
BILA NOMAZIZI
03 Cllr S.LINKS YES 12 12 4
MPHEGO MAPHONTLO ABRAM
WHITE MAPHE ELIZABETH
RAKGOMO RAMOTSWEDI DANIEL
PHEHLANI MAKI GLADYS
DIANE KEAGILE MARIA
TAMLE NOKOMDELI ANDERSON
MATHIBI EXENIA MOSIA
BOBI MALIXOLE ANDERSON
TSHABALALA TSHIMANE ROBERT
MANHISSE NOSIZWE VERONICA
04 Cllr B.R MAFIKA Yes 12 12 4
NOTA ANGNES NCEDISWA NOYO NOMABONGO ROSE
HLONGWANE NOSITHILE CATHRINE
PONDO BUYISWA
LABAMBA VUYISWA
NONGQWENCE XOLISWA
RAMMONI DITEKO FRANS
| APPENDICES 246
KUSE THEMBISA
MPASI JEANET NTSOAKI
KHUMISI MALOA AMELA
05 Cllr. N.MCETYWA Yes 12 12 4
BOOI WANDILE
GOSHOBE NONTSIKELELO
SPAMLA NONTSIKELELO
GUNUZA KHANYISA
KGOROYABOCO OTLADIRANG
NANA NOSISA
MATETA NTSWAKI
MANTSHINGANE NOXOLO
LEDUBA NTHABELENG
TOBAYO NOSIPHO
06 Cllr. N.A. TSOTETSI Yes 12 12 4
12 12 4
4 12 4
NKALA SIBUSISO ABEDNICO
NGWANE BULELANI JOEL
RALEKUKU TSELENG THERASIA
ADAMS PIKI WILLIAM
MPONGO REFILWE MARCIA
MOKOKOANA LEFU EDWIN
KHALIPHA TALITA
MATSHANGA SELLO JACK
SANGXU SYLVIA
07 Cllr. M.P.NKUTHA Yes 12 12 4
BAAS OUPA
RAMANTSI APRIL
MKOZA MICHEAL
NGQAQU THAMSANQA
FIKENI MILEKA
MAGWAZA NOBUHLE
MBENGO NTOMBI
NKABINDE PAUL
NXIBA NOKUTHULA
BAAS ABIAS
08 Cllr. M.B. NKABINDE Yes 12 12 4
MAHAMBA THEMBA ABRAM
MPHITHI MOWONGA PETRUS
MHLANGA NOSIPHO AGATHA ZIQOTYANA NOCAWE
TOBATOBA MPOLOOKENG SELINA
FOBATOBA TEBOGO KENNETH
FOTENG TEBOGO KENNETH
KGOBE NOMVALI MOTI
COLIATH NOMAKHOSAZANA CHRISTINA
MANTLONI SITATA MHLANGANYEZWA
MANYATHELA EMILY
09 Cllr. M.A MALIBE Yes 12 12 4
PITLELE NGAKA
| APPENDICES 247
MAKGABUTLANE TEBOGO
TSEMATSI MAPITSO
MOGAGABE ANDRIES
MAKHUTLE NKADIMO
NGCUKA SANDISISWE
PHIRI ALETA
MAHABE PAGISO
NTSHIBA LUCIE
NHACUMAGUE ISSAIA PETRUS
10 Cllr. M.N. MATSHE Yes 12 12 4
DLAMINI SIPHO MUSA
MOLOATOA RAMORWALLA NICHOLARS
MOTSUMI-MOGAKI NTHOTE MARTHA
MASILELA DIMAKATSO CONSTANCE
MOHANOE MASABATHA STELLA
MOKGOKOLUSI MOJELE MARIA
MASAU LESEHGO PHILADELPHINIA
SKOSANA PASEKA RODNEY
MOGALE TSHIDISO
MOYA AARON
11 Cllr. W.M.MBABA Yes 12 12 4
PAMPIER NOSISI FLORENCE
SEKALELI LEHLONOLO JACOB
OLIFANT KEITUMETSE VALENCIA
NJENA DUMISANI VINCENT
TIMBELA NOMATHEMBA MARGARET
TSHEKELA MNCEDISI ELIJAH
MAKHOSONKE AGATHA LIRONTSHO
MAPHIKELELA MALOTOANE JONAS
ZWANE SINDISWA PRISCILLA
LETLABIKA NTHABELENG
12 Cllr. T.MOKUKE YES 12 12 4
WILLEMSE MATTHEUS
DIKOLOMELA FRANS
DANIELS ITUMELENG
MAJIYA LUSANDA
SKOSANA MASERITHI
SETHOLE MADINESE SUZAN
NCEBENI MONWAPELE
NCANA THANDILE
FAKU NDUMISO
MDINGI CELIWE
13 Cllr. F. SONTSHWAYO YES 12 12 4
MALULEKE GEZANI THOMAS
MATOLA BONGIWE
MOLO MASIVUYE
SAIA BENJAMIN
JIBA KHULULEKILE LUCAS
SEABELO MPHO ANNA
| APPENDICES 248
NOTSHAYA NOBUNTU
DIKE NTOMBIZODWA
NTLONTI NTOMBETHEMBA
MAGQABI MFANUFIKILE
14 Cllr. A. VENTER YES 12 12 4
MAYEZA NOKWANDA
TSOLOANE LOMILE
MAYEZA ATHENKOSI
HLATSHWAYO JANE
NTSOAKELENG DLOTHI
MASIZA PAMELA
JANSE VAN RENSBURG JACQUES
KGOTLENG KENTSE
MATLALA SIMON
PHIWE NTHOROANE
15 Cllr. L.A MGANU
MBANGWA SIPHOKAZI YES 12 12 4
MAGILIWE NOSPIHIWE
NTONTELA NONFUNDISO
TSHONA FRANCINA
SIXOLO PHAKAMA
DUMAXAKE NTOMBENTLE
MAY SIYOYO
NDAMASE MXOLISI
MOSEBETSANE NTHUSENG
TSHETLHANA MOOKETSANE
16 Cllr. D.C NIEUWENHUYZEN YES 12 12 4
QOLO NOMVULA
HUTANG JOYCE
MHLOGO GUGU
DLAMINI MOROESI
WANA NONTOZIFANI
SONQI NOMAEFESE
LEKHOOA KEKELETSO
TSHOLO MARTHA
NOGAGA SIVIWE
MOSADI JERMINAH
17 Cllr.L ISHERWOOD YES 12 12 4
NTSHULANE PEARL
LUBHEDZE RAYMOND
MATOMELA HAZEL
SEGOE ELISA
BOTLHOLO ALFRED
KHUMALO ANDRIES
KGATITSOE MMADITAU
NTILANE POPI
STUURMAN SIZWE
MOILOA MARIA
| APPENDICES 249
18 Cllr.E.LEKOPA YES 12 12 4
MOKOENA MOHANOE SIMON
MOLETSANE NKASA ISHAMEL
SIBIYA MAUREEN LUNGILE
MOKOMA CLEMENT KHULANYA
NHLAPO VERONICA SEIKAENG
LEOTO MAMOKHO PHAMPHILIA
NHLAPO LINDY CONSTANCE
SEREKEGO MAGUDI ALINA
MANGE MANDLENKOSI PAUL
CAN MAMSIE
19 Cllr. V.M TYELINGANE YES 12 12 4
MAKHOWA ZAMILE
MPANZA LUNGILE
MAXHWILI NOWANDILE
NKONJANE KUNGEKA
PHOHLO MAMPHO
FANI BONGIWE
SONYABASHE SIZWE
MAHOMBA FUMANKEKILE
PONI CHAKUVA
RONOTI MAXWELL
20 Cllr.M.NGQELE YES 11 11 4
NKONE NOMUSA
CHABAGAE MARIA
TIT ZIYANDA
VOVO NOMSA
MAKHOHLISO SIPHO
NONINA NOKWEZI
RATSHEFOLA DAVID
NTLANGU NOMFUNDO
NOPOTE JONGILE
21 Cllr. J.D.W. ZWART YES 12 12 4
VISAGIE DIRK
BOFELO THABO
MOERANE TSIETSI
TSHABALALA MOETI
PHEETA SEISO
MOCHACHNE PATRICK
WILLIMS REBECCA
MAGAGANE VICTOR
LOUW AGNES
RAMONANA LETTIA
22 Cllr. M.SKOSANA YES 12 12 4
PHUTHI DILAHLAONE
LESEMELA SELLO
SOLOSHE SIMON
NCHOE MORWESI
CHABANGU DIPUO
| APPENDICES 250
MOOTSI DITLHARE
MQOTHO VUYISILE
MANANGA VOBAKHELE
MOLEFE SIPHO
DLAMINI HENDRICK
23 Cllr.M.MOEKETSI YES 12 12 4
MJULEKA NONKQUBELA
SKEYI NOMTHGANDAZO
MANJINGOLO SIMON
MKHWANAZI STANLEY
MOHLOBOLI SIMON
24 Cllr.N.P SALANE YES 12 12 4
LEEPILE ANDRIES
SOMANE WILSON
SEERI THABEA
MOLAUDI OSEYENG
PHALATSE LOMI ONNICA
HOAYANE AGNES
PHAJANE KOMA MATHEWS
MTHIMKHULU MATSHIDISO
MOKOENA PUSELETSO
MOGAWANE GOSIAME
25 Cllr.M.D DLHAMINI YES 12 12 4
NGXAKA SOLSINAH NOMZI
MBITHA NTOMBIZODWA MARTHA
MATHAMELA FRANK TSANI
BILLY CECILIA
MAY BONGIWE
MAGEZA NELISIWE
RAKOMANE MOEDER KGALENG MARTHA
TSHWANA REBECCA
ZANANI SIMO KLEINNOOI
MOGOLE GEORGINA KELEBOGILE
26 Cllr. B.A MPEKE YES 12 12 4
MATIWANE THEMBI
PHENDUKA LINDIWE
QAYI MOLEKO
MPEKE BERNADETTA
JONGA LIZZY
NTANJANA SARAH
MOTSUMI FRANS
MONDI NOMAPHELO
MOSINKI JOHN
PHAMODI ANNA
27 Cllr.M.NAKI YES 12 12 4
SIKO SIMON
MATSHIPA NONTSHUMAYELO
MTSHALI HLONJISWA
| APPENDICES 251
NGWANDI THEMBIKHAYA
CINGO BABALWA
NYAMANI SHEPSTONE BONGANI
MARIXINGANA ANDISIWE
LANDU PRINCESS
MOSHOESHOE RONY ROBERT
28 Cllr. C.N.D REBELLO YES 12 12 4
QUIRK LARRY
TEMPLETON JOHN
FANIE PHUTHUMA
MQGALISO RAYMOND
MOLAPO ESTHER
NTSIMANE MARIA
TYATYAZA NOXOLO
MARWANQANA NOZUKO
NQGASA JANE
WOLMARANS RIAAN
| APPENDICES 252
APPENDIX F – WARD INFORMATION
Ward Title: Ward Name (Number)
Capital Projects: Seven Largest in Year 2017/2018 (Full List at Appendix O) R' 000
No. Project Name and detail Start Date End Date Total Value
13 Construction of Carletonville Waste Management Depot 26/04/17 30/09/18 30 283
22 Electrification of the Township (Kokosi Ext 6) 27/11/17 21/11/18 29 991
2, 12 Khutsong Ext 5/6 Internal Water & Sewer Services (Phase 4)
29/06/17 30/06/18 25 776
3 Replacement of Khutsong Reservoir 22/03/17 07/07/19 15 725
22 Design and Construction of Internal Roads & Stormwater (Kokosi Ext 6)
06/10/17 30/06/18 13 156
2, 12 Khut Ext 5/6 -(753 Services Stands) & 500 Top Structures (Phase 5)
29/01/18 30/06/19 11 725
24, 26 Khutsong Roads and Stormwater (Phase 2) 14/08/17 30/06/18 9 737
T F.1
Basic Service Provision
Detail Water Sanitation Electricity Refuse Housing
Households with minimum service delivery
97.1% 89.4% 86.9% 76.7%
Households without minimum service delivery
2.9% 10.6% 13.1% 23.3%
Total Households* 66625 66625 66625 66625
Houses completed in year
Shortfall in Housing units
*Including informal settlements T F.2
| APPENDICES 253
Top Four Service Delivery Priorities for Ward (Highest Priority First)
No. Priority Name and Detail Progress During Year 2017/2018
1 SMME Development (89, 2%) (i) SEDA information training - 22 March 2018 (ii) ABSA training program - 5 & 6 September 2017 (Costing, Pricing and
BBBEE) (iii) ABSA training program - 30 & 31 August 2017 (Financial Literacy) (iv) Systems training session - 11 July 2017
2 Access to Parks (89%) There was no plan in place to develop new parks in the municipality. The only plan that was in place during the financial year under review was to maintain existing parks. AngloGold Ashanti as one of the stakeholders in the municipality donated a park in Kokosi Township next to Popo Molefe Stadium.
3 Public Safety Facilities e.g. Police Stations (75%)
4 Electricity: Public Lighting (Street) (71, 4%) Street light material was received in the 3rd
quarter of the year. The plan was to first revive the streetlights in the Carletonville CBD and main roads i.e. Dolomite, Annan, Ada, Agnew, Kaolin, Osmium, Halite, Flint, Gold, Emerald etc. 90% of the plan was achieved with a few technical issues to solve. The plan has been to roll out all the repairs to the rest of the city starting from the centre of Carletonville to all the other areas of Merafong driven by the issue of scarce resources the Section has been faced with. The repairs are still ongoing throughout the city
T F.3
ELECTED WARD MEMBERS (STATING NUMBER OF MEETING ATTENDED – MAXIMUM 12 MEETINGS)
Names: xxx (8); xxx (7)…
T F.3
APPENDIX G – RECOMMENDATIONS OF THE MUNICIPAL AUDIT COMMITTEE YEAR
2017/2018
MUNICIPAL AUDIT COMMITTEE RECOMMENDATIONS
Date of Meeting Committee Recommendations
during Year 2017/2018
Recommendations adopted (enter
Yes) if not adopted (provide
explanation)
Audit Committee Meetings:
12/12/2017
12/06/2018
Internal Audit to arrange the induction workshop for the Committees in 2018.
No, expected to be tabled at the next Council Meeting.
The Chairperson requested Internal Audit to assist in arranging an urgent meeting with the Municipal Manager and Executive Mayor to discuss amongst other things challenges and capacity within the Internal Audit Unit.
No, expected to be tabled at the next Council Meeting.
| APPENDICES 254
MUNICIPAL AUDIT COMMITTEE RECOMMENDATIONS
Date of Meeting Committee Recommendations
during Year 2017/2018
Recommendations adopted (enter
Yes) if not adopted (provide
explanation)
Internal Audit to seek approval from the Chairperson before accepting ad-hoc audits.
No, expected to be tabled at the next Council Meeting.
A submission to be made to Council to capacitate Internal Audit and Risk Management Unit.
No, expected to be tabled at the next Council Meeting.
The Committee requested a detailed report presented in a table format indicating description of the litigation, legal costs paid to attorneys to date, the date when the case was lodged against the municipality, how long the case has been active, total value to date etc.
No, expected to be tabled at the next Council Meeting.
The Committee requested assurance from management on whether the Disaster Recovery Plan was tested and that ICT completely complies with ICT Governance Framework.
No, expected to be tabled at the next Council Meeting.
The Committee recommended that water losses be presented both in units and Rands for better interpretation of losses suffered by the municipality.
No, expected to be tabled at the next Council Meeting.
The Committee recommended that when management is unable to attend meetings, an apology letter should be sent and a representative nominated to attend the meeting on their behalf.
No, expected to be tabled at the next Council Meeting.
The Committee recommended the following to Internal Audit: Review the plan and indicate audit projects that can be completed by June 2018 and the ones that should be rolled over to the new financial year; Request assistance from Gauteng Provincial Treasury or other
No, expected to be tabled at the next Council Meeting.
| APPENDICES 255
MUNICIPAL AUDIT COMMITTEE RECOMMENDATIONS
Date of Meeting Committee Recommendations
during Year 2017/2018
Recommendations adopted (enter
Yes) if not adopted (provide
explanation)
municipalities within the region to assist Internal Audit with capacity especially in conducting complex audits; Internal Audit to immediately develop 2018/2019 audit plan, focus on high risks, take capacity into consideration and minimise taking too many audit projects; Request assistance from Gauteng Provincial Treasury and the Auditor-General when compiling the Audit Plan.
The Committee recommended that the summary be expanded to include rating of findings from low to high and to also indicate expected revised target dates for implementation of outstanding actions.
No, expected to be tabled at the next Council Meeting.
The Committee requests management to provide detailed report on bank reconciliation.
No, expected to be tabled at the next Council Meeting.
The Committee recommended that an analysis should be done to check the financial impact and profitability in terms of paying overtimes v/s appointing permanent or contract people to close the vacancy gap.
No, expected to be tabled at the next Council Meeting.
The Committee requested the following reports to be tabled at the next Audit Committee meeting: Forensic Report on Over-Time. Section 32 Report requesting Tshwane Municipality to assist with procurement of debt collectors.
No, expected to be tabled at the next Council Meeting.
| APPENDICES 256
MUNICIPAL AUDIT COMMITTEE RECOMMENDATIONS
Date of Meeting Committee Recommendations
during Year 2017/2018
Recommendations adopted (enter
Yes) if not adopted (provide
explanation)
Revenue Enhancement Strategy; and MPAC Chairperson report on consequence management and strategy on how financial misconduct will be handled.
Risk Management Committee Chairperson’s Report be tabled at the next Audit Committee meeting;
No, expected to be tabled at the next Council Meeting.
The Committee requested that the Auditor-General be invited at the next Audit Committee meeting to present the Audit Strategy.
No, expected to be tabled at the next Council Meeting.
Performance Audit Committee
Meetings:
06/06/2018
The Committee requested that Financial Performance Report and OPCA Plan to be part of the of the standing agenda items in the meeting.
No, expected to be tabled at the next Council Meeting.
The Audit Committee and Performance Audit Committee induction workshop to be scheduled on 27 June 2018. Vision Activ to be invited to demonstrate the PMS system to the Committees.
No, expected to be tabled at the next Council Meeting.
PAC Chairperson to engage with Ms. Ntombi Seabi regarding standardized regional Charters for 2018/2019 financial year and that engagement meetings should be held with all the municipality in the region to ensure standardization of all Charters; Final standardized PAC Charter to be submitted for approval and adoption by Council.
No, expected to be tabled at the next Council Meeting.
Internal Audit to develop a resolution register to track all resolutions and/or recommendations proposed by the Committee and the implementation thereof, the register to be a standing item on
No, expected to be tabled at the next Council Meeting.
| APPENDICES 257
MUNICIPAL AUDIT COMMITTEE RECOMMENDATIONS
Date of Meeting Committee Recommendations
during Year 2017/2018
Recommendations adopted (enter
Yes) if not adopted (provide
explanation)
the PAC agenda.
PMS Analysis Report to be expanded to include narrative comparing performance from quarter to quarter and clearly indicate whether there are improvements or deteriorating performance;
No, expected to be tabled at the next Council Meeting.
Internal Audit to verify and provide assurance that the municipality complies with the MFMA Compliance Checklist as reported by management;
No, expected to be tabled at the next Council Meeting.
| APPENDICES 258
APPENDIX H – LONG TERM CONTRACTS AND PUBLIC PRIVATE PARTNERSHIPS
Long Term Contracts (20 Largest Contracts Entered into during 2017/2018)
R' 000
Name of Service Provider (Entity or Municipal Department)
Description of Services Rendered by the Service Provider
Start Date of Contract
Expiry date of Contract
Project manager
Contract Value
EOH Roads & Highways
Wedela Extension 3 Roads Stormwater Phase 2
Nov 2017 PMU R4 600 000
Pro-Plan Consulting Engineers
Rehabilitation of Khutsong North Water & Sewer Reticulation
Nov 2017 PMU
R10 000 000
Morad Consulting Engineers
Rehabilitation of Carletonville Landfill Site Phase 2
Nov 2017 PMU
R8 005 269
Motla Consulting Engineers
Electrification of Khutsong South Extensions Phase 6
Nov 2017 PMU
R5 000 000
Pro-Plan Consulting Engineers
Construction of Internal Water & Sewer infrastructure in Khutsong South Phase 4
Sep 2017 PMU
R26 282 000
T H.1
Public Private Partnerships Entered into during Year 2017/2018
R' 000
Name and Description of Project
Name of Partner(s) Initiation Date
Expiry date Project manager
Value 2008/09
NOT APPLICABLE
T H.2
| APPENDICES 259
APPENDIX I – MUNICIPAL ENTITY/ SERVICE PROVIDER PERFORMANCE SCHEDULE
NO. Project Description Appointed Consultant
Average Score 1-5 1 - Poor 2 - Average 3 - Good 4 - Very Good 5 - Excellent
Appointed Contractor
Average Score 1-5 1 - Poor 2 - Average 3 - Good 4 - Very Good 5 - Excellent
1.
Rehabilitation of C’ville Landfill Site (Phase 2)
Morad Consulting Engineers (Pty) ltd
4 Matho Waka Trading Enterprise
Turnkey
2. Sludge Drying Beds (Kokosi) Morad Consulting Engineers (Pty) ltd
4 TTTB Supply and Construction
Turnkey
3. Kokosi X99 Electrification LSO Consulting (Pty) Ltd 4 Omohle Construction Turnkey
4. Khutsong South Extensions Electrification (Phase 6)
Motla Consulting Engineers (Pty) Ltd
3 Avuxeni Construction Turnkey
5. Fochville Main Substation Upgrade
LSO Consulting (Pty) Ltd 4 Omohle Construction Turnkey
6. Replacement of Khutsong Reservoir
Morad Consulting Engineers (Pty) Ltd
4 Readira Nweti JV 3
7. Khutsong Roads and Storm water (Phase 1)
Morad Consulting Engineers (Pty) Ltd
4 Dolly Construction & Allied Works cc
1
8. Khutsong Roads and Storm water (Phase 2)
None. A consultancy service handled internally by PMU after MG Manetsi Consultants was terminated.
N/A Khomanani Construction cc
3
9. Kokosi Roads and Storm water (Phase 2)
DWP Consultants Inc 4 Khomanani Construction cc
4
10. Wedela Ext 3 Roads and Storm water (Phase 2)
EOH Roads & Highways 5 Empyreal Turnkey
APPENDICES 260
11. Construction of Carletonville Waste Management Depot
LSO Consulting (Pty) Ltd 4 Ruwacon Turnkey
12. Khutsong Multi-Purpose Community Centre
MG Manetsi Consulting Engineers (Pty) Ltd. Ceded contract to Kgapeng Investments
2 Maseno General Trade (Abandoned Site) Kgapeng Investments
Turnkey
13. Khutsong North Water & Sewer Reticulation
Pro-Plan Consulting Engineers (Pty) Ltd
4 Pro-Plan Consulting Engineers (Pty) Ltd
Turnkey
14. Construction of taxi drop-off zones (Phase 2)
EOH Roads & Highways 5 Empyreal Turnkey
15. Kokosi Ext 6 Construction of Roads
EOH Roads & Highways 5 Empyreal Turnkey
16. Khutsong Reservoir Morad Consulting Engineers (Pty) Ltd
3 Morad Consulting Engineers
Turnkey – Projects not yet implemented.
Planning & Design Phase
17. Carletonville Reservoir (007) Morad Consulting Engineers (Pty) Ltd
3 Morad Consulting Engineers
18. Khutsong Water Tower (Chiawela)
Morad Consulting Engineers (Pty) Ltd
3 Morad Consulting Engineers
19. Onyx Street Bulk Pipeline Replacement
Morad Consulting Engineers (Pty) Ltd
3 Morad Consulting Engineers
20. Khutsong Mzwanzwa Street Outfall Sewer Pipeline Bypass
Morad Consulting Engineers (Pty) Ltd
3 Morad Consulting Engineers
21. Khutsong Ext 2 (Skopas) Collapsed sewer line
Morad Consulting Engineers (Pty) Ltd
3 Morad Consulting Engineers
22.
Khutsong Ext 5/6 Internal Water & Sewer Services (Phase 4) 4.1 & 4.2 (500 Stands)
Pro-Plan Consulting Engineers (Pty) Ltd
4 4.1 Faka Construction 4.2 Mashinini & Aditep Civils JV
Turnkey
APPENDICES 261
23. Khutsong Ext 5/6 Internal Water & Sewer Services (753 Stands) (Phase 5)
Pro-Plan Consulting Engineers (Pty) Ltd
4 - Faka Construction Turnkey
24. Design and Construction of Internal Roads & Storm water (Kokosi Ext 6)
EOH Roads & Highways 5 EOH Roads & Highways
Turnkey
25. Upgrading of Existing Bulk Water Line and Pump station (Kokosi Ext 6)
Morad Consulting Engineers (Pty) Ltd
2 Morad Consulting Engineers (Pty) Ltd
Turnkey
26. Electrification of the Township (Kokosi Ext 6)
LSO Consulting Engineers (Pty) Ltd
4 LSO Consulting Engineers (Pty) Ltd
Turnkey
| APPENDICES 262
APPENDIX J – DISCLOSURES OF FINANCIAL INTERESTS
Disclosures of Financial Interests
Period 1 July 2017 to 30 June 2018 (Current Year)
Position Name Description of Financial interests*
(Nil / Or details)
(Executive)
Mayor
SM Mogale Letsie Nil
Member of
MayCo /
Exco N Best
Nil
MD Dlhamini Nil
EM Lekopa Nil
MB Lephuting Lephating Security 50 %
MN Matshe Nil
WT Mosiane Nil
M Moyeni Nil
TE Mphithikezi Nil
M Ngqele Nil
GM Sello Nil
MI Skosana Nil
DV Tabane Nil
Councillor C Capkey Nil
NW Gcalangobuthi Nil
L Isherwood Nil
MP Lefakane Nil
MA Legabe Nil
MS Links Nil
BR Mafika Nil
MA Malibe Matema CC 50%
JT Malibe Nil
APPENDICES 263
NH Malinga Nil
MZ Mashangoane Nil
WM Mbaba Nil
N Mcetywa Nil
LA Mganu Am Ampondo Emueli Construction
NC Mngxekeza-Masela Nil
TM Mnqandi Nil
MF Moeketsi-Motholo Nil
T Mokuke Nil
MJ Molokele Nil
JT Mothibi Nil
BA Mpeke Nil
IE Mukwevho Nil
M Naki Nil
JM Ndobatha Nil
DC Nieuwenhuyzen Nil
MB Nkabinde Nil
MP Nkutha Nil
VB Nkwanyana Nil
JT Phooko Nil
MW Ramodupi Nil
CMD Rebelo 100% Carleton Video & Music CC
NP Salane Nil
MB Selelale Nil
F Sontshwayo Nil
MP Teleko Nil
APPENDICES 264
SJ Tlhapi Nil
NA Tsotetsi Nil
TE Tsotetsi Nil
VM Tyelingane Nil
B Van Der Berg Nil
A Venter Nil
JDW Zwart Nil
Municipal
Manager
LR Thibini up and
until 31 July 2017
50 Roggeveld Street, Noordheuwil,
Krugersdorp
Chief
Financial
Officer
AR Ngwenya 1 Balmora Cluster, Willow Brook
Other S57
Officials
LM Maja 36 Brebner Street, Welkom
CWA Nieuwoudt 12 Iris Avenue, Fochville
DM Hobe 28 Mainse Avenue, Roodekrans
Nil would indicate nothing to declare and is not an indication that no declaration
took place.
T J
APPENDICES 265
APPENDIX K: REVENUE COLLECTION PERFORMANCE BY VOTE AND BY SOURCE
APPENDIX K (i): REVENUE COLLECTION PERFORMANCE BY VOTE
R' 000
Year
2016/2017
Actual Original
Budget
Adjusted
Budget
Actual Original
Budget
Adjustments
Budget
Vote 1 - Municipal Manager 4 885 2 205 1 555 3 493 58% 125%
Vote 2 - Finance 453 711 305 448 442 241 494 925 62% 12%
Vote 3 - Economic Development and Planning121 959 898 1 083 851 -5% -21%
Vote 4 - Chief Operating Officer
Vote 5 - Infrastructure 703 803 769 987 569 585 615 897 -20% 8%
Vote 6 - Community Services 13 669 140 561 127 887 131 552 -6% 3%
Vote 7 - Housing 1 242 66 223 56 754 82 983 25% 46%
Vote 8 - Shared Services 1 146 2 285 2 350 765 -67% -67%
Total Revenue by Vote 1 300 415 1 287 607 1 201 455 1 330 466 3% 11%
T K.1
Revenue Collection Performance by Vote
Current: Year 2017/2018 Year 2017/2018 Variance
Vote Description
Variances are calculated by dividing the difference between actual and original/adjustments budget by the
actual. This table is aligned to MBRR table A3
APPENDICES 266
APPENDIX K (ii ): REVENUE COLLECTION PERFORMANCE BY SOURCE
Year
2016/2017Actual Original
Budget
Adjustments
Budget
Actual Original
Budget
Adjustments
Budget
Property rates 164 685 176 768 170 883 171 323 -3% 0%
Property rates - penalties & collection charges –
Service Charges - electricity revenue 261 751 295 220 258 085 246 921 -20% -5%
Service Charges - water revenue 258 526 312 717 258 632 265 044 -18% 2%
Service Charges - sanitation revenue 39 042 46 171 51 228 48 656 5% -5%
Service Charges - refuse revenue 58 974 64 137 61 755 62 857 -2% 2%
Service Charges - other 1 242 1 241 100% 100%
Rentals of facilities and equipment 1 319 1 586 2 207 1 104 -44% -100%
Interest earned - external investments 7 318 2 786 16 120 15 236 82% -6%
Interest earned - outstanding debtors 73 424 79 690 87 650 89 587 11% 2%
Fines 30 927 34 932 35 470 39 585 12% 10%
Licences and permits 14 321 14 397 10 417 10 607 -36% 2%
Transfers recognised - operational 381 998 251 910 242 953 372 536 32% 35%
Other revenue 4 928 7 293 6 054 4 431 -65% -37%
Gains on disposal of PPE
Public Contributions and Donations 1 959 1 038
Total Revenue (excluding capital transfers
and contributions)
1 300 415 1 287 607 1 201 455 1 330 166 3,20% 9,68%
T K.2Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. This table is
aligned to MBRR table A4.
Revenue Collection Performance by Source
R '000
Description
Year 2017/2018 Year 0 Variance
APPENDIX L: CONDITIONAL GRANTS RECEIVED: EXCLUDING MIG
Conditional Grants: excluding MIG
R' 000
Details
Budget Adjustments Budget
Actual Variance Major conditions applied by donor (continue below if necessary)
Budget Adjustments Budget
Neighbourhood Development Partnership Grant
Public Transport Infrastructure and Systems Grant
Other Specify:
Water Services Infrastructure Grant 20 000 26 807 15 725 -27% -70%
Mining Town Allocation 48 500 48 500 44 734 -8% -8%
APPENDICES 267
(CoGTA)
Integrated National Electrification Program 10 000 10 000 8 613 -16% -16%
Human Settlements Development Grant
117 542 117 542 37 501 -213% -213%
Municipal Disaster Recovery Grant 0 26 147 2 230 100% -1073%
Expanded Public Works Programme (Public Works & CoGTA) 1 970 1 970 1 970 0% 0%
Total 198 012 230 966
110 773 -79% -109%
T L
FOR GRANT CONDITIONS, SEE APPENDIX L SUBMITTED SEPARATELY
COMMENT ON CONDITIONAL GRANTS EXCLUDING MIG:
LOCAL GOVERNMENT EQUITABLE SHARE
In terms of section 227 of the Constitution, local government is entitled to an equitable share of nationally raised
revenue to enable it to provide basic services and perform its allocated functions. The local government equitable
share is an unconditional transfer that supplements the revenue that municipalities can raise themselves
(including property rates and service charges). The equitable share provides funding for municipalities to deliver
free basic services to poor households and subsidises the cost of administration and other core services for those
municipalities that have the least potential to cover these costs from their own revenues.
MUNICIPAL SYSTEMS IMPROVEMENT GRANT
Grant purpose is to assist municipalities to perform their functions and stabilise institutional and governance
systems as required in the Municipal Systems Act, the Municipal Property Rates Act and related legislation.
It will fund a range of projects in municipalities in support of the Back to Basics strategy, including helping
municipalities set up adequate records management systems, drawing up organograms for municipalities and
reviewing their appropriateness relative to their assigned functions, and assisting municipalities with revenue
collection plans. The indirect grant will be complemented by the Department of Cooperative Governance’s work to
develop an integrated consumer database that municipalities can draw data from, as well as a performance
management system to track municipal performance.
Conditions
• The Department of Cooperative Governance and the benefitting municipality must sign a memorandum
of understanding that includes: details of the activities and deliverables being funded, responsibilities of
each stakeholder, protocols for engagements and feedback, the budget for each activity and timeframes
for implementation.
• Municipalities must pass a council resolution supporting the memorandum of understanding
• Technical support to municipalities must include transfer of skills to municipal officials
• Grant funds may be spent on building the capacity of municipalities with respect to the purpose and
outputs listed for this grant
APPENDICES 268
FINANCIAL MANAGEMENT GRANT
The purpose of the grant is to promote and support reforms in financial management by building capacity in
municipalities to implement the Municipal Finance Management Act (MFMA)
In respect of the conditions of the grant, FMG funds can be used towards the following:
• Establishment of a Budget and Treasury Office (BTO) with positions filled by appropriately qualified
personnel o establishment of SCM capacity, an Internal Audit unit and Audit Committees
• At least five interns appointed over a multi-year period
• On-going review, revision and submission of FMG support plans to National Treasury that address
weaknesses in financial management
• acquisition, upgrade and maintenance of financial management systems to produce multi-year budgets,
in-year reports, Service Delivery and Budget Implementation Plans, Annual Financial Statements, annual
reports and automated financial management practices including the municipal Standard Chart of
Accounts
• Review and adoption of a delegation system
• Support the training of municipal officials in financial management towards attaining the minimum
competencies, as regulated in Government Gazette 29967 of June 2007
• Preparation and timely submission of annual financial statements for audits
• support implementation of corrective actions to address audit findings in municipalities that received
adverse and disclaimer opinions
• Technical support in financial management to municipalities must include the transfer of skills to
municipal officials
• The preparation of a financial recovery plan and the implementation thereof, where appropriate
• implementation of financial management reforms and addressing shortcomings identified in the Financial
Management Capability Maturity Model (FMCMM) Assessment Report for that municipality
• ensuring timely submission of the FMG support plan consistent with the conditions of the grant.
• Regular, timely submission of reports with completed information.
• Expenditure must be maintained at appropriate levels.
EXPANDED PUBLIC WORKS PROGRAMME INTEGRATED GRANT
The purpose of the grant is to incentivize municipalities to expand work creation efforts through the use of labour
intensive delivery methods in the following identified focus areas, in compliance with the EPWP guidelines:
Road maintenance and the maintenance of buildings
Low traffic volume roads and rural roads
Basic services infrastructure, including water and sanitation reticulation (excluding bulk infrastructure)
Other economic and social infrastructure
Tourism and cultural industries
Waste management
Parks and beautification
Sustainable land-based livelihoods
Social services programmes
Community safety programmes
APPENDICES 269
Conditions
• EPWP projects must comply with the project selection criteria determined in the EPWP grant manual, the
EPWP guidelines set by Department of Public Works (DPW) and the Ministerial Determination updated
annually on 1 November each year
• Eligible municipalities must sign a funding agreement with the DPW before the first grant disbursement,
with their final EPWP project list attached
• Reports must be loaded on the EPWP reporting system within 15 days after the end of every quarter in
order for progress to be assessed
• Municipalities must maintain beneficiary and payroll records as specified in the audit requirements in the
EPWP grant manual
• The EPWP grant cannot be used to fund the costs of permanent municipal personnel; however, a
maximum of five per cent of the grant can be used to fund contract based capacity required to manage
data capturing and on-site management costs related to the use of labour intensive methods
• The EPWP grant can only be utilised for EPWP purposes, for the projects approved in each municipality's
EPWP project list
• To receive the first planned grant disbursement, eligible municipalities must submit a signed Incentive
Agreement with a project list by 10 June 2016
• Subsequent grant disbursements are conditional upon eligible municipalities reporting quarterly on EPWP
performance within the required timeframes
• Municipalities must implement their approved EPWP project list and meet agreed job creation targets
• EPWP branding must be incorporated on any existing signage as per corporate identity manual
INTEGRATED NATIONAL ELECTRIFICATION PROGRAMME GRANT (MUNICIPAL)
Grant purpose is to implement the Integrated National Electrification Programme (INEP) by providing capital
subsidies to municipalities to address the electrification backlog of occupied residential dwellings, and the
installation of bulk infrastructure
Conditions
• Adhere to labour intensive construction methods in terms of the Expanded Public Works Programme
(EPWP) guidelines for activities such as trenching, planting of poles, etc
• Register electrification master plans for bulk infrastructure with INEP and abide by the advice or guidance
of the Department of Energy (DoE) regarding the central planning and co-ordination for such bulk
infrastructure
• Use INEP funds for the refurbishment of critical infrastructure, only upon submission of a project plan
which must be approved by DoE
• Utilise own funding if the subsidy is insufficient (top-up funding must be available)
• Minimum size of supply of 1.2 KVA, After Diversity Maximum Demand 20 Amp per household connection,
in line with the Suite of Supply Policy
• Municipalities may utilise up to R1.5 million of the total allocation for service fees (pre-engineering and
Eskom connection fee) if approved by the DoE in their business plans
APPENDICES 270
WATER SERVICES INFRASTRUCTURE GRANT
Grant purpose is to:
• Facilitate the planning and implementation of various water and sanitation projects to accelerate backlog
reduction and improve the sustainability of services in prioritised district municipalities, especially in rural
municipalities
• Provide interim, intermediate water and sanitation services that ensure provision of services to identified
and prioritised communities, including through spring protection, drilling, testing and equipping of
boreholes and on-site solutions
• To support drought relief projects in affected municipalities.
Conditions
• Municipalities must submit business plans signed off by the Accounting Officer in line with their Water
• Services Development Plans (WSDP)
• The Department of Water and Sanitation (DWS) must approve the business plans before projects can be
implemented
• WSAs may only spend funds in line with approved business plans
• WSA must submit monthly financial and quarterly non-financial reports to DWS
• All projects funded must be aligned to, and not duplicate, any existing or planned projects funded from
other conditional grants or municipal own funds
• Funds must be reflected on the capital budget of the municipality
• Grant funds may not be spent on operations and routine maintenance
• Municipalities must demonstrate in the business plan how they plan to fund and manage the
infrastructure over the long term
HUMAN SETTLEMENTS DEVELOPMENT GRANT
The purpose of the grant is to provide funding for the creation of sustainable and integrated human settlements.
Conditions
• Funds for this grant should be utilised for the priorities as set out in the 2014-19 Medium Term Strategic
Framework for human settlements.
• The transfer of the first tranche of funds is conditional on approval by the national Department of Human
Settlements (DHS) of provincial business plans consistent with the provisions of the Housing Act,
• 2017 Division of Revenue Act (DoRA) and in compliance with the National Housing Code.
• The transfer of subsequent tranches is conditional on provinces capturing the targets and budget and
capturing delivery statistics and expenditure monthly on the housing subsidy system (HSS) and the basic
accounting system (BAS), at sub-sub-programme level, and submitting monthly reconciliations within the
required time frames.
• The provinces must ensure reconciliation and alignment of financial and non-financial outputs between
the HSS and BAS on a monthly basis.
• All projects in the approved business plan must be aligned with the integrated development plan (IDP)
and the spatial development framework of municipalities as well as the built environment performance
plan (BEPP) for metropolitan municipalities.
• Draft and final business plans must be aligned to provincial annual performance plans.
APPENDICES 271
• Provincial Heads of Departments (HoDs) must sign-off and confirm that projects captured in business
plans are assessed and approved for implementation in the 2017/18 financial year.
• Provinces may utilise up to a maximum of five per cent of the provincial allocation for the operational
capital budget programme to support the implementation of the projects contained in the business plan.
• Provinces must indicate budget allocations consistent with provincial and related municipal backlogs for
adequate housing.
• Provinces must gazette allocations for respective accredited municipalities in terms of the DoRA by no
later than 31 May 2017.
• Where municipalities have been accredited for the housing function, the provincial business plans must
reflect relevant allocations, targets and outputs as agreed and approved with the respective
municipalities.
• Provinces may utilise a maximum of two per cent of the human settlements development grant (HSDG)
for the provision bulk infrastructure projects for basic services in non-metropolitan municipalities to
unlock Human Settlement projects on condition that the funding is complementary with commitments by
municipalities in their Integrated Development Plan and municipal budget for provision of such bulk and
infrastructure with Municipal Infrastructure Grant funding. The prior approval of the transferring officer is
required.
MUNICIPAL DISASTER RECOVERY GRANT
The purpose of the grant is to rehabilitate and reconstruct municipal infrastructure damaged by a disaster with the
strategic purpose being to restore functionality of municipal infrastructure following a disaster.
(In the case of the Merafong City Local Municipality the grant has been allocated in response to the need to repair
sinkholes and infrastructure damage caused by sinkholes)
Conditions
They include the following requirements and govern the use of disaster funds:
• A business plan and project implementation plan signed by the Accounting Officer aligned to the post
disaster verification assessment report must be submitted to the NDMC.
• Disaster reconstruction and rehabilitation funds must only be utilised for approved projects as listed in
the post disaster verification assessment reports and approved business plans.
• Monthly and quarterly financial and non-financial performance reports on disaster allocations must be
submitted to the NDMC through the relevant Provincial Disaster Management Centre (PDMC).
• Annual performance evaluation report on financial and non-financial performance to be submitted to the
NDMC through the relevant PDMC.
• Municipalities must liaise and align the disaster recovery projects with the Municipal Infrastructure Grant
projects to ensure proper monitoring and reporting on the progress for implementation of the projects.
• Transfers will only be made if municipalities have submitted financial and non-financial reports required
in terms of the 2017 Division of Revenue Act for this financial year and the previous financial year (if funds
for disaster recovery were allocated in that year).
• Funds will be transferred in tranches, the transfer of funds will depend on the past and current
performance of the municipalities in relation to the conditions of the grant in case funds for disaster
recovery were allocated in the previous year
T L.1
APPENDICES 272
APPENDIX M: CAPITAL EXPENDITURE – NEW & UPGRADE/RENEWAL PROGRAMMES
APPENDIX M (i): CAPITAL EXPENDITURE - NEW ASSETS PROGRAMME
APPENDICES 273
Year
2016/2017
ActualOriginal
Budget
Adjustment
Budget
Actual
ExpenditureFY + 1 FY + 2 FY + 3
Capital expenditure by Asset Class
Infrastructure - Total 94 134 95 755 184 259 141 935 212 024 117 161 136 200
Infrastructure: Road transport - Total 24 451 16 034 39 431 36 306 29 938 9 491 27 780
Roads, Pavements & Bridges 24 451 16 034 39 431 36 306 29 938 9 491 27 780
Storm water
Infrastructure: Electricity - Total 27 759 12 500 42 500 40 596 16 000 27 670 25 955
Generation
Transmission & Reticulation 27 759 12 500 42 500 40 596 16 000 27 670 25 955
Street Lighting
Infrastructure: Water - Total 27 155 56 282 92 505 57 860 148 980 25 000 25 540
Dams & Reservoirs 27 155 20 000 26 807 15 459 76 336
Water purification
Reticulation 36 282 65 698 42 401 72 644 25 000 25 540
Infrastructure: Sanitation - Total 8 622 2 934 3 203 3 185 16 006 20 000 20 000
Reticulation
Sewerage purification 8 622 2 934 3 203 3 185 16 006 20 000 20 000
Infrastructure: Other - Total 6 147 8 005 6 620 3 988 1 100 35 000 36 925
Waste Management 6 147 8 005 6 620 3 988 1 100 35 000 36 925
Transportation
Gas
Other
Community - Total 15 017 27 084 32 178 38 080 27 084 32 178 –
Parks & gardens
Sportsfields & stadia
Swimming pools
Community halls 14 560 23 410 32 178 38 080 23 410 32 178
Libraries
Recreational facilities
Fire, safety & emergency
Security and policing
Buses
Clinics
Museums & Art Galleries
Cemeteries
Social rental housing
Other 457 3 674 3 674
Table continued next page
Table continued from previous page
Year
2016/2017
ActualOriginal
Budget
Adjustment
Budget
Actual
ExpenditureFY + 1 FY + 2 FY + 3
Capital expenditure by Asset Class
Heritage assets - Total – – – – – –
Buildings
Other
Investment properties - Total – – – – – –
Housing development
Other
Other assets 4 807 1 460 1 460 1 110 3 460 3 489 3 519
General vehicles
Specialised vehicles
Plant & equipment 4 807 1 460 1 460 1 110 1 460 1 489 1 519
Computers - hardware/equipment
Furniture and other office equipment 2 000 2 000 2 000
Abattoirs
Markets
Civic Land and Buildings
Other Buildings
Other Land
Surplus Assets - (Investment or Inventory)
Other
Agricultural assets – – – – – –
List sub-class
Biological assets – – – – – –
List sub-class
Intangibles – – – – – –
Computers - software & programming
Other (list sub-class)
Total Capital Expenditure on new assets 113 958 124 299 217 897 181 125 242 568 152 828 139 719
Specialised vehicles – – – – – –
Refuse
Fire
Conservancy
Ambulances
T M.1* Note: Information for this table may be sourced from MBRR (2009: Table SA34a)
Year 2017/2018 Planned Capital expenditure
Capital Expenditure - New Assets Programme*
Capital Expenditure - New Assets Programme*
Year 2017/2018 Planned Capital expenditureDescription
Description
R '000
R '000
APPENDICES 274
Year -1
ActualOriginal
Budget
Adjustment
Budget
Actual
ExpenditureFY + 1 FY + 2 FY + 3
Capital expenditure by Asset Class
Infrastructure - Total – – – – – –
Infrastructure: Road transport -Total – – – – – –
Roads, Pavements & Bridges
Storm water
Infrastructure: Electricity - Total – – – – – –
Generation
Transmission & Reticulation
Street Lighting
Infrastructure: Water - Total – – – – – –
Dams & Reservoirs
Water purification
Reticulation
Infrastructure: Sanitation - Total – – – – – –
Reticulation
Sewerage purification
Infrastructure: Other - Total – – – – – –
Waste Management
Transportation
Gas
Other
Community – – – – – –
Parks & gardens
Sportsfields & stadia
Swimming pools
Community halls
Libraries
Recreational facilities
Fire, safety & emergency
Security and policing
Buses
Clinics
Museums & Art Galleries
Cemeteries
Social rental housing
Other
Heritage assets – – – – – –
Buildings
Other
Table continued next page
Table continued from previous page
Year -1
ActualOriginal
Budget
Adjustment
Budget
Actual
ExpenditureFY + 1 FY + 2 FY + 3
Capital expenditure by Asset Class
Investment properties – – – – – –
Housing development
Other
Other assets – – – – – –
General vehicles
Specialised vehicles
Plant & equipment
Computers - hardware/equipment
Furniture and other office equipment
Abattoirs
Markets
Civic Land and Buildings
Other Buildings
Other Land
Surplus Assets - (Investment or Inventory)
Other
Agricultural assets – – – – – –
List sub-class
Biological assets – – – – – –
List sub-class
Intangibles – – – – – –
Computers - software & programming
Other (list sub-class)
Total Capital Expenditure on renewal of
existing assets – – – – – –
Specialised vehicles – – – – – –
Refuse
Fire
Conservancy
Ambulances
T M.2* Note: Information for this table may be sourced from MBRR (2009: Table SA34b)
Capital Expenditure - Upgrade/Renewal Programme*
Year 0 Planned Capital expenditure
Capital Expenditure - Upgrade/Renewal Programme*
Year 0 Planned Capital expenditure
Description
Description
R '000
R '000
APPENDICES 275
APPENDIX N – CAPITAL PROGRAMME BY PROJECT YEAR 2017/2018
Capital Programme by Project: Year 2017/2018
R' 000
Capital Project Original
Budget
Adjustment Budget
Actual
Variance (Act -
Adj) %
Variance (Act -
OB) %
Water
Replacement of Khutsong Reservoir 20000 26807 15459 -73% -29%
Khutsong North Water and Sewer Reticulation 10000 7700 5225 -47% -91%
Internal Services (Khutsong Ext5 ) 26282 26457 11738 -125% -124%
Internal Services (Khutsong Ext5 ) 0 26241 24310 -8% 100%
Upgrade existing Bulk Water line and Pump station 0 5300 1128 -370% 100%
Sanitation/Sewerage
Sludge Drying Beds Kokosi/Khutsong 2934 3203 3185 -1% 8%
Electricity
Khutsong South Electrification Phase 5 5000 5000 3650 -37% -37%
Kokosi Ext 99 Electrification 5000 5000 4963 -1% -1%
Kokosi Ext 6 Electrification 0 30000 29991 0% 100%
Main Substation Upgrade - Fochville 2500 2500 1992 -26% -26%
Refuse removal
Rehabilitation of Rooipoort Landfill Site 8005 6620 3988 -66% -101%
Roads and Stormwater
Khutsong Roads and Stormwater (Phase 1) 6100 11762 9113 -29% 33%
Kokosi Roads and Stormwater (Phase 1) 2600 2985 2985 0% 13%
Wedela Ext 3 Roads and Stormwater (Phase 1) 4600 5800 5614 -3% 18%
Construction of Taxi Drop-off zones 2734 2275 2265 0% -21%
Kokosi Ext Construction of Roads 0 3144 3144 0% 100%
Design and Construction Internal roads and stormwater Kokosi Ext 6 0 13200 13185 0% 100%
Rehabilitation of Sinkholes 0 265 0 0 0
Economic development
Informal Trading Area Carletonville Phase 2 3674 0 0 0 0
ICT and Other
Construction of Carletonville Waste Management Depot 23410 27878 30283 8% 23%
Khutsong Multi-Purpose Centre 0 4300 7797 45% 100%
Furniture and Fittings 1460 1460 1074 -36% -36%
T N
APPENDICES 276
APPENDIX O – CAPITAL PROGRAMME BY PROJECT BY WARD YEAR 2017/2018
Capital Programme by Project by Ward: Year 2017/18
R' 000
Capital Project Ward(s) affected Works completed (Yes/No)
Water
Khutsong North Water & Sewer Reticulation 6-10 No
Replacement of Khutsong Reservoir 3 No
Khutsong Reservoir 3 No
Carletonville Reservoir( 007) 5 Yes
Khutsong Water Tower (Chiawelo) 8 No
Khutsong Ext 5/6 Internal Water & Sewer Services (Phase 4)
2, 12 No
Upgrading of Existing Bulk Water Line and Pump-station (Kokosi Ext 6) 24 No
Sanitation/Sewerage
Sludge Drying Beds - Kokosi WWTW 14 No
Khutsong Ext 2 (Skopas) Collapsed Sewer Lines 7 No
Khutsong Nzwanzwa Street Outfall Sewer Pipeline Bypass 3 No
Onyx Street Bulk Sewer Pipeline Replacement 18 No
Electricity
Khutsong South Extensions Electrification (Phase 6) 2 No
Kokosi Ext 99 Electrification 22 No
Fochville Main Substation Upgrade 24 No
Electrification of Kokosi Ext 6 Township 22 No
Housing
Khutsong Ext 5/6 - 500 Top Structures 2, 12 No
Refuse removal
Construction of Carletonville Waste Management Depot 28 No
Rehabilitation (Phase 2) Carletonville Landfill Site 13 No
Roads & Stormwater
Khutsong Roads and Stormwater (Phase 1) 1, 9 Yes
Khutsong Roads and Stormwater (Phase 2) 2, 3 Yes
APPENDICES 277
Kokosi Roads and Stormwater (Phase 2) 24, 26 Yes
Wedela Ext 3 Roads and Stormwater (Phase 2) 20 Yes
Construction of taxi drop-off zones (Phase 2) 1 Yes
Kokosi Ext 6 Construction of Roads 22 Yes
Construction of Internal Roads & Stormwater (Kokosi Ext 6)
22 Yes
Economic development
Sports, Arts & Culture
Khutsong Multi-Purpose Community Centre 2 No
Environment
Health
Safety and Security
ICT and Other
T O
APPENDICES 278
APPENDIX P – SERVICE CONNECTION BACKLOGS AT SCHOOLS AND CLINICS
Establishments lacking basic services Water Sanitation Electricity Solid Waste
Collection
Schools (NAMES, LOCATIONS)
Clinics (NAMES, LOCATIONS)
T P
Service Backlogs: Schools and Clinics
Names and locations of schools and clinics lacking one or more services. Use 'x' to mark lack of service at appropriate
level for the number of people attending the school/clinic, allowing for the proper functioning of the establishment
concerned.
NO SERVICE BACKLOGS IN TERMS FOR THE ABOVE SERVICES
APPENDICES 279
APPENDIX Q – SERVICE BACKLOGS EXPERIENCED BY THE COMMUNITY WHERE ANOTHER SPHERE OF
GOVERNMENT IS RESPONSIBLE FOR SERVICE PROVISION
Services and Locations Scale of backlogs Impact of backlogs
Clinics:
Housing:
Licencing and Testing Centre:
Reseviors
Schools (Primary and High):
Sports Fields:
T Q
Service Backlogs Experienced by the Commmunity where another Sphere of Government is the Service Provider
(where the municipality whether or not act on agency basis)
APPENDICES 280
APPENDIX R – DECLARATION OF LOANS AND GRANTS MADE BY THE MUNICIPALITY
All Organisation or Person in
receipt of Loans */Grants* provided
by the municipality
Nature of project Conditions attached to
funding
Value
Year 0
R' 000
Total Amount
committed over
previous and
future years
NIL
T R
Declaration of Loans and Grants made by the municipality: Year 0
* Loans/Grants - whether in cash or in kind
APPENDICES 281
APPENDIX S – NATIONAL AND PROVINCIAL OUTCOMES FOR LOCAL GOVERNMENT
Outcome/Output Progress to date Number or
Percentage
Achieved
Output: Improving access to basic services
Output: Implementation of the Community Work
Programme
Output: Deepen democracy through a refined Ward
Committee model
Output: Administrative and financial capability
National and Provincial Outcomes for Local Government
* Note: Some of the outputs detailed on this table may have been reported elsewhere in the Annual Report. Kindly ensure that this information
consistent.
T S
| APPENDICES 282
VOLUME II : ANNUAL FINANCIAL STATEMENTS
Annual Financial Statements (AFS) Annual Performance Report and the Auditor General’s Report are included
as Annexure A”, Annexure “B” and Annexure “C” of this Annual Report.