Date 19 January 2021

Emfuleni Municipality The Tipping Point

Financial Recovery Plan Implementation

Business Sector Briefing

Meeting

Lead Administrator: Gilberto Martins

▪ “It is extremely disheartening to realise that the lives of the people of the area are

being affected negatively as a result of lack of both political will and

administrative inclination to serve the people of the area. The situation requires a

re-imagined approach to reverse the effects years of an ineffective

municipality,” said Ms Faith Muthambi, the Chairperson of the committee.

▪ Ms Faith Muthambi, the Chairperson of the Committee (Cogta) - Parliament, Friday, 16 October 2020

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● Why are we here?

● Operating Framework

● Emfuleni - It’s Citizens

● The Administrators Team Members

● The Tipping Point - The 3 Laws

● This Intervention - What it is NOT !

● This Intervention - What it is !

● The Tipping Point - Emfuleni Framework

● The “tool” to fix the challenges

● The target

● Discussions

TABLE OF CONTENTS

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TABLE OF CONTENTS

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The playing field !

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Understanding the Complexities -

● There are 45 functional Ward Committees in the

Municipality.

● Ward Committees have been established to encourage

participation by the community and to inform Council

decisions.

● These committees seek to foster effective communication

between Council and the community.

● The Municipal Council comprises 90 councilors, 45 of

which are Ward Councilors and 45 are Proportional

Representatives (PR) Councilors.

● The Councilors at Emfuleni participate in decision making

and represent the local constituencies in Council. 5

Why are we here ?

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South Africa Constitution (1996)

(S139) Provincial intervention in local government :

(1) When a municipality cannot or does not fulfil an executive obligation in terms of the

Constitution or legislation , the relevant provincial executive may intervene by taking any

appropriate steps to ensure fulfilment of that obligation, including:

a)Issuing a directive to the Municipality Council , describing the extent of the failure to fulfil

its obligations and stating any steps required to meet its obligation

b)Assuming responsibility for the relevant obligation in that municipality to the

extent necessary to –

i.Maintain essential national standards or meet established minimum standards for

the rendering of a service;

ii.Prevent that Municipal Council from taking unreasonable action that is prejudicial

to the interests of another municipality or to the province as a whole; or

iii.Maintain economic unity

c)Dissolving the Municipal Council and appointing an administrator until a newly elected

Municipal Council has been declared elected, if exceptional circumstance warrant such

step.

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Operating Framework

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Local Government Municipal Finance Management Act & Regulations

Key - Example

⚫Section 142 to 146 (Financial Recovery Plan)

Local Government Municipal Systems Act & Regulations

Key- Example

⚫Section 67 - Human Resource Development

⚫Section 106 Non Performance and Maladministration

Other operational legislation

⚫BBBEE

⚫SCM

⚫Unsolicited Proposal Management

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EMFULENI

- It’s Citizens 61 % of the Population is made up of young persons under the age of 35 years.

Less than 10 % of the residents have a post matric qualification and only 40 %

are employed.

Source: Stats SA Community Survey 2016

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Where are we

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Non delivery of

mandate -

Service

deleivery

negative impact

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Expectations - A better life!

101010

The Administration Team

■ The Administrators Team : Section 139 (1) (b) Three Focus Areas

■ Lead Administrator

○ Mr Gilberto Martins

■ Financial Management

○ Mr Kgaugelo Mahlaba

○ Ms Rianda Kruger

■ Supply Chain Management

○ Ms Atirilo Hlongwane

○ Mr Lesedi Mere

■ Service Delivery

○ Mr Silas Zimu11

Observing the past to prepare for the future!

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• Malicious compliance • No consequent management – internal and external service

providers• Limited Human capacity and skills • Non functional Project Management Unit - Project current status

,Under expenditure• Contract management not adequate (note not contactor

performance)• No “Just in time information”, no integrated reporting

methodology• IDP become irrelevant for service delivery• No consequent for cancellation / removing projects or criteria

for implement• No report action? IDP feedback to communities, Monthly project

reports • No project progress integration to financial payment review• Types of construction contract used ? Effective management

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2020/21 Budget

Operational Budget

Due to low collections during the COVID-19 period, the

collection rate was adjusted downward to 71.82% from

75.49% of the budget approved on 30 June 2020;

A consumer qualifying for indigent support must receive

the subsidies as determined annually during the

preparation of the municipality's budget.

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The Tipping Point

A three laws “point plan”

The Law of the Few

A focus on basic service delivery to citizens ,hinged on

reputational management and effective

communication.

The Law of the Stickiness Factor

A focus on leveraging stakeholder management

process / business continuity, to enhance service

delivery.

The Law of the Power of Context

A strategy that addresses the immediate (FRP) to

short term (sustainable management)

This Intervention - What it is not!

● A quick fix solution;

● Strategic turnaround theories

● Shotgun intervention promise and programs;

● A talk shop of impossibile delivery targets - Empty

promises;

● The silver bullet to every problem;

● A forever time frame for results;

● A endless budget delivery framework;

● An individual plan - Lead Administrators;

● A government go it alone implementation FRP;

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This Intervention - What it is!

● A prioritised key focus areas approach -

● Leading sectors that will result in a positive impact on the

citizens of Emfuleni;

● Practical immediate implementation solution;

● A cash budget management system

● Reputational damage re dress

● Confidence builder to Emfuleni citizens

● A collective responsibility - Collective ownership

● A committed administrators team

● A performance management official approach

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The Tipping Point - The Framework

● Dealing with an “epidemic”

● Fix the broken window pane “concept”

● IMPACT OBJECTIVE - Small enough to

be done immediately, (within current

constraints ) Small enough for change to

be seen,(on the ground intervention ) Big

enough for the Citizens to feel the change,

(Impact - Better life) Reputational damage

addressed (Mandate delivery in place) 17

The Tipping Point -

Fix the broken Window Pane

The Epidemic Three Key Focus Areas

The Window Frame (1)Financial Management (2)Supply Chain

Management

(3)Service Delivery

The Window Panes Creditors - Weekly

Payments (Cash Budget)

Procurement Plan -

Forward projection / IDP

Grant and

Subsidized 100%

expenditure

“ How little things

can make a big

difference”

Malcom Gladwell

Debtors collection Committee effectiveness

(Specification, Evaluation,

Adjudication)

Sewerage

Main outfall sewer

Refuse Collection /

Illegal Dumping

Roads / Potholes

Water / Electricity

Cost Containment Contract Management

Revenue Generation

Enhancement

Unsolicited proposals Capital Project

Management

Auditor General Findings Ward operational

model

Call Centre Implementation Catalytic

Investment Prj18

2020/21 Budget

Operational Budget

★ WARD BASED - Interconnected intervention programs roll out for all

required intervention both service delivery, revenue collection and other

ELM functionalities;

★ Workstream operational methodology to include all stakeholder,

monitoring and progress reporting through administrators (not by

administrators), for Council reporting and feedback by councillor to

respective Wards and part of ELM Communication Strategy;

★ Ongoing corrective action implemented in response to findings.

(Reports)

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2020/21 Approved Budget

A special adjustments budget was approved by Council on 14 October 2020.

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2020/21 Budget

Grants & Subsidies

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2020/21 Budget

Capital Budget

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PRIORITY CATALYTIC

PROJECTS/INVESTMENTS

1 2 3 4 5 6 7

The Vaal

River

City- The

Vaal 21

Game

changer

AB-Inbev

Investme

nt Project

Isanti

and

Project

Jordan

Premier

Foods:

Snow

Flake

Agri-

Industriali

zation

(Agri

Parks)

Maritime Proposed

Industrial

Hubs in

Sebokeng

&

Vanderbijl

park

Integrate

d Skills

Develop

ment

Partners

hip

Project

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Underspending = Failed Delivery

Resulting from POOR Planning

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Administrators Target

2525

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

Year 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021

Mandate

%

Focus Interventio

n Area

Community Beneficiaries

Low Impact on Communities High

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Service Delivery is not a

perfect science !

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“one machine can do the work of fifty ordinary men OR

women. No machine can do the work of one

Extraordinary man OR women.”

Thomas Edison

CONTACT DETAILS : GILBERTO MARTINS

E MAIL: gilbertomartins928@gmail.com

Cell: 082 902 9977

Thank You

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