KOUKAMMA MUNICIPALITY INTERVENTION

STATUS REPORT

PRESENTED TO SELECT COMMITTEE

19 OCTOBER 2010

PARLIAMENT – CAPE TOWN

TABLE OF CONTENT

1. Principles and terms of reference

2.The need for an intervention

3.The goals of the intervention

4.The achievements of the intervention

5.The remaining challenges

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PRINCIPLES

The intervention should facilitate the restoration of an environment

conducive to proper administration, rule of law and effective service

delivery

The intervention must accomplish its objectives in the shortest possible

time

Post intervention support will be carried out by the Department and the

relevant District Municipal

TERMS OF REFERENCE

Ensure internal audit and financial recovery plans

Review and improve Council structures

Ensure turnaround strategies for financial management, service delivery,

revenue management, asset management and expenditure

TERMS OF REFERENCE

Facilitate and monitor disciplinary hearings for suspended

managers

Facilitate appointment of section 57 managers

Coordinate and manage project specialists

Ensure full legal compliance

Prepare an appropriate environment for forensic investigation

Identify all irregular, wasteful and unauthorized expenditure

Ensure risk management and anti fraud/corruption plans

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THE NEED FOR THE INTERVENTION

The Koukamma Local Municipality had experienced severe

performance deficiencies over a long period of time. The

most severe consequences of these deficiencies were:

5 consecutive years of disclaimers by the AG

Ongoing failures to meet financial reporting deadlines

Inaccurate billings for services

A lack of legal compliance

THE NEED FOR THE INTERVENTION

Poor infrastructure maintenance

A lack of development

Compromised service delivery

Undisciplined staff and low morale among employees

A refusal by the community to pay for services

KEY FOCUS AREAS

The Koukamma intervention focused on 4 key

areas:

Governance and Public Participation

Financial Reporting and Billing Management

Corporate Services/Human Resources Management

Technical and Development Service

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KEY GOALS: GOVERNANCE AND PUBLIC PARTICIPATION

Establish guidelines for Council and rules of order

Establish internal audit function

Address recommendations of the SIU

Improve communication with community

Manage staff and counselor debt

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KEY GOALS: FINANCIAL REPORTING AND BILLING SYSTEM

Adjustment budget approved on 25/3/10

Draft IDP and budget 2010-11 approved on 31/3/10 as per treasury

regulations

IDP, Budget and SDBIP consolidated and approved by Council on 31

may 2010

Tariffs reviewed to take into consideration cost of service provision

Cost cutting measures in place, e.g. Telephone and 3G cards, travelling

and fleet management

KEY GOALS: TECHNICAL AND DEVELOPMENT SERVICES

Develop systems and procedures for technical projects

Establish records management systems

Develop IT infrastructure

Development of indigent register

Install PMU section

Review LED strategy

Review IDP strategy

Review disaster management, including water shortages/drought

KEY GOALS: TECHNICAL AND DEVELOPMENT SERVICES

Obtain funding for water and sanitation related issues

Install and repair water meters

Manage MIG

ACHIEVEMENTS: GOVERNANCE AND PUBLIC PARTICIPATION

Council guidelines and rules of order have been developed and

approved by Council

The lax attitude towards corporate governance processes and the lack

of organizational leadership have been addressed

An internal audit function has been established and staff recruited

All of the recommendations of the SIU have been implemented

Steps have been taken to improve communication with community

with the establishment of the stakeholder forum

Plans have been implemented to manage staff and counselor debt

ACHIEVEMENTS: FINANCIAL REPORTING AND BILLING MANAGEMENT

Annual financial reports for 2008/2009 were compiled and the AG has

started the audit

The process of compiling the annual financial reports for 2009/2010 has

begun

New financial record keeping systems have been introduced using clean

data

Improved supply chain management policy and system have been

achieved with the review if the SCM Policy and structures.

AG audit queries are being addressed and Operation Clean Audit is

supporting ongoing improvements.

ACHIEVEMENTS: CORPORATE SERVICES AND HRM

The 2010/2011 budget has been approved

A revenue management and enhancement strategy has been

developed; a Debt Collection Policy has been adopted and

promulgated. 4 730 debtors who owe the Municipality a total of

R 47 416 683.14 have been contacted.

An Asset Register has been developed and a draft fraud

prevention plan is in place

Various cost cutting measures have been approved and

implemented.

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ACHIEVEMENTS: CORPORATE SERVICES AND HRM

The new draft organ gram was approved by Council and was costed. The

new positions will be advertised and interviews completed.

Appointments of new Municipal Manager and other section 57 managers

finalized

A Performance Management System has been initiated.

Performance management contracts for Section 57 Managers have been

drafted

Disciplinary matters for the MM and other managers have been finalized.

ACHIEVEMENTS: CORPORATE SERVICES AND HRM

Change management and organizational climate improvement workshops

were held to improve staff morale and discipline

A consultant has been identified who will:

Review HR and payroll administration

Prepare employment contracts for employees

Establish records management systems

ACHIEVEMENTS: TECHNICAL AND DEVELOPMENT SERVICES

Systems and procedures were developed to improve implementation and

monitoring of technical projects as well as records and grant management

An indigent register was developed with registration of 1950 beneficiaries

The DLTC was reopened

An IDP process plan has been developed , a process plan and a

community-based representative forum established

Disaster management plans were reviewed and updated

Funding of R 177 million was obtained for water and sanitation related

issues is nearing completion with various viable projects on the ground

Water meters are have been installed in various areas and are assisting

with the accurate billing for services

THE REMAINING CHALLENGES

The discipline of staff is not yet at a satisfactory level for ongoing

achievement of organizational goals

The skills levels of employees is very low and suitable training and

development plans need to be developed

The maintenance and development of infrastructure, especially water

infrastructure is still below standard, largely because staff are not

sufficiently skilled in water quality management.

There is a lack of water resources in the area due to a long term

drought and government intervention is required.

THE REMAINING CHALLENGES

There has been political interference in the work of the Municipality.

Local politicians should strive for a better balance between their

oversight role and interference.

The culture of non-payment for services by the community has not

been completely overcome and needs more attention

The new administration of the Municipality requires support from the

Provincial Department of Local Government

THANK YOU

THANK YOU

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