table of contents › wp-content › uploads › 2020 › 07 › 20.3... · pikitup third quarter...

Pikitup Third Quarter Report (Jan-Mar 2019-20) 3

TABLE OF CONTENTS1. CHAPTER ONE: Leadership and Corporate Profile 1.1 Corporate Profile and Overview of the Entity…….........………….………………………….………………………..….8 1.2 Strategic Objectives…………………………………………………………………………………………………………........91.3 Chairperson’s Report.……………………………………………………………………………...……………………..….....15 1.4 Managing Director’s Report……………………………………………………………………………………………..….....16 1.5 Chief Financial Officer’s Report…..………………………………………………………………………….……………...….18 1.6 High-level Organizational Structure..………………………………………………………………………………………….20

2. CHAPTER TWO: Corporate Governance2.1 Board Composition………………………………………………………………………………………….……………..…...22 2.2 Enterprise Risk Management………………………...………………………………………………..……………………....25 2.3 Anti-corruption and fraud investigations.....................................................….………………..…………………..……27 2.4 Compliance with Laws & Regulations…………………….…………………………….…………….…………………..…...27

3. CHAPTER THREE: Service Delivery Performance 3.1 Waste Management Services............………………………………………………………..……………………..………...32 3.2 Integrated Waste Avoidance, Waste Prevention and Waste Minimisation………………………..………………………..39 3.3 Landfill Management……………………..............…………………………………………………….………………..........413.4 COVID-19 Imperatives on Operations..........................................................................................................................45 3.5 Partnerships and Stakeholder Involvement…………………………………………………………………………………..45 3.6 Performance Against Service Level Standards..……….....................................……………………………………………57 3.7 Performance Against SDBIP....……………………………………………………………………………………………….....58

4. CHAPTER FOUR: Human Resource and Organisational Management4.1 Employee remuneration…………………………………..........…………………………….....………………………..........63 4.2 Key vacancies…………………………………………………………………………………………………………………....63 4.3 Employment Equity.....…………………………………………………………………………....……………….……………66 4.4 Skills Development and Training………………………………………………………………………………………………..68 4.5 Performance Management………………….....…………………………………………………………………………….…70 4.6 Employees on Precautionary Suspension……....................…………………………………………….………………....71 4.7 Employee Wellness....................................………….....................................………………………………....………..…71 4.8 Employee Benefits.……………………………………………………………………………………..…………………........73 4.9 Occupational Health, Safety and Environment Management……...........………………………………………………. 744.10 Disabling Injuries per Facility and Types of Incident…………………….………………………………………………… 754.11 Environmental Controls................................................................................................................................................76

5. CHAPTER FIVE: Financial Performance and Exposure5.1 Statement of Financial Position and high-level notes………………………………………………………………….……...80 5.2 Revenue………………………………............................................……………………….......…….......81 5.3 Expenditure…………………………………….…………………........………………..…………........................82 5.4 Cash Flow Statement……………………………………….………………….........…………………………….................86 5.5 Capital Projects & Expenditure ……………………………………………….....................………………………………… 86 5.6 Ratio Analysis…………………............................…...…………………………………………………..............................875.7 Supply Chain Management and BBBEE……………………...…………………………...................................................88 5.8 Pending Litigation and Possible Liabilities…………………………………..............………….........................................90

6. CHAPTER SIX: Internal & External Audit Findings6.1 Year to date Overall Audit Assessment for 2018/19 Financial Year……………………………………………..……..…..98 6.2 Progress on Resolution of Internal Audit Findings…………………………………………….…………………….……..101 6.3 Progress on Resolution of External Audit Findings ………………………………………….…………………………………102

APPROVAL OF THE PIKITUP JOHANNESBURG SOC LIMITED PERFORMANCE REPORT AS

AT THE END OF THE THIRD QUARTER 2019-2020TER 20

Pikitup Third Quarter Report (Jan-Mar 2019-20)4


BAC Bid Adjudicating Committee

CoJ City of Johannesburg

DIFR Disabling Injury Frequency Rate

EISD Environment and Infrastructure Services Department

EAP Employee Assistance Programme

EPWP Expanded Public Works Programme

GDARD Gauteng Department of Agriculture and Rural Development

GDS Growth Development Strategy

IDP Integrated Development Plan

J@W Jozi at Work

KPI Key Performance Indicator

LoS Level of Service

MFMA Municipal Financial Management Act

MMC Member of Mayoral Committee

MRF Materials Recovery Facility

MSA Municipal Systems Act

NWMS National Waste Management Strategy

OHS Occupational Health and Safety Act

RCR Refuse Collection Rounds

SANCA South African National Council on Alcoholism

SCM Supply Chain Management

SDBIP Service Delivery Budget and Implementation Plan

SDA Service Delivery Agreement

S@S Separation at Source

Tons Tonnages

WESSA Wildlife & Environment Society of South Africa

ABBREVIATIONS

6

Our Report

This Quarterly Report presents the Entity’s performance during the 2019-20 financial year. It highlights the

achievements and the challenges and presents the overall performance against pre-determined quarterly targets

in the approved 2019-20 Business Plan and Service Delivery Budget and Implementation Plan (SDBIP).

The Report is aligned with the Service Delivery Agreement (SDA) and Shareholder Compact that indicates the key

performance areas, key performance indicators, and targets expressed and agreed by the Shareholder and the

Board. The SDA indicates that, within seven (7) days after the end of each quarter, Pikitup must prepare and submit

its quarterly reports to Group Governance. Performance and related reporting are aligned with the Municipal

Finance Management Act, the Municipal Systems Act, and other applicable statutes and regulations.

Pikitup is well on its way to realising the objectives of the GDS (Growth Development Strategy) 2040 and to giving

expression to the City of Johannesburg’s ten strategic priorities.

Structure of the Report

The following format of this Report is as prescribed by Group Governance:

• Chapter 1: Corporate profile and leadership

• Chapter 2: Governance

• Chapter 3: Service delivery performance

• Chapter 4: Human resource and organizational management

• Chapter 5: Financial performance and exposure

• Chapter 6: Internal and External Audit Findings


CHAPTER ONE

LEADERSHIP AND CORPORATE PROFILE

Pikitup Third Quarter Report (Jan-Mar 2019-20)8

1. CHAPTER ONE: LEADERSHIP AND CORPORATE PROFILE

1.1 Corporate Profile and Overview

Who are we?

Pikitup Johannesburg SOC Limited Reg. No. 2000/029899/07 is mandated to provide waste management and

refuse removal services to the residents of Johannesburg. As the 100% Shareholder the City of Johannesburg

appoints the Entity’s Board of Directors in alignment with the Companies Act and the Entity’s Memorandum of

Incorporation (MOI). In addition to oversight by the City of Johannesburg with the Environment, Infrastructure and

Services Department (EISD), governance is overseen by the Group Governance Department.

For Pikitup to make a meaningful impact its activities must be aligned with the City of Johannesburg’s Growth and

Development Strategy (GDS 2040) and the National Waste Management Strategy (NWMS). Specifically, to reduce,

re-use, and recycle waste streams while extracting value along the waste value chain.

Ensuring waste minimisation and prevention requires a community driven strategic approach that includes

innovative solutions, partnerships, and stakeholder involvement to achieve the successful implementation of

projects. Creating opportunities for developmental service delivery, and for communities to take responsibility for

the way services are delivered, contributes towards the alleviation of poverty, inequality, and unemployment.

The Pikitup Johannesburg SOC Limited Service Delivery Implementation Plan details the various indicators and

targets needed to achieve the goals. In turn, its Business Plan details the related projects, interventions, and

available resources.

The vision of Johannesburg being the cleanest city in Africa will be realised by our commitment to continually

improving performance through partnerships, stakeholder involvement, and the pursuit of extracting value from

the waste value chain.

Scale of operations

Pikitup owns and operates twelve (12) waste management depots strategically located across CoJ’s seven (7)

regions, and manages forty two (42) garden sites, four (4) operational landfill sites and two closed landfill sites.

Pikitup is the permit/license holder of Ennerdale, Robinson Deep, Goudkoppies, Marie Louise, Kya Sands and

Linbro Park landfill sites within the City of Johannesburg boundaries. As the licence holder of the landfill sites, the

organization is required by law to manage the sites according to relevant legislation, regulation, ordinances and by-

laws. In addition, some waste is disposed at two privately owned landfill sites, namely: Mooiplaats and Chloorkop.


1.2 Strategic Objectives

Pikitup’s strategic focus of ensuring waste prevention and minimization, and a community driven approach

to waste management, is aligned with the NWMS and GDS 2040 outcome 3: Enhanced, quality services and

sustainable environmental practices. It reflects and gives effect to the strategic intent of underpinning the 2019-20

nine Integrated Development Plan (IDP) Priorities.

This requires that the implementation of projects and approaches are driven by innovative solutions and partnerships

and stakeholder involvement. Achieving the above strategic focus will require the participation of all residents and

businesses. Minimising waste generation and illegal dumping needs a collective effort from civil society, business,

and labour hence Pikitup’s specific drive of stakeholder engagement and partnerships.

In line with the GDS 2040, Pikitup has identified five over-arching strategic goals. These are:

1. Build an Effective and Efficient Waste Management Company;

2. Integrated Waste Management, Waste Prevention and Waste Minimisation;

3. Realisation of Value throughout the Waste Value Chain;

4. Effective and Efficient Waste Services; and

5. Partnerships and Stakeholder Involvement.

Pikitup is committed to continually improve its performance and to deliver on its mandate. The Entity has in turn put

in place predetermined quarterly objectives and key performance indicators (KPIs) for measuring and monitoring its

performance against the above mentioned strategic goals. The performance against the predetermined objectives

is articulated further in the SDBIP under chapter three of this report. Pikitup will further align its strategic outlook

with the vision of the new political leadership of the City of Johannesburg.

The GDS 2040 outcomes are outlined as follows:

• Improved quality of life and development-driven resilience for all• An inclusive, job-intensive, resilient, competitive and smart economy that harnesses the potential of citizens• Provide a resilient, liveable, sustainable urban environment – underpinned by smart infrastructure supportive of

a low carbon economy• A high performing metropolitan government that proactively contributes to and builds a sustainable, socially inclusive,

locally integrated and globally competitive Gauteng City Region

Pikitup has committed to the 10 strategic priorities of the City of Johannesburg as follows:

Priority 1 Good governance

Priority 2 Financial sustainability Priority 3 Integrated human settlements Priority 4 Sustainable service delivery Priority 5 Job opportunity and creation

Priority 6 Safer city

Priority 7 Active and engaged citizenry

Priority 8 Economic development Priority 9 Sustainable environmental developmentPriority 10 Smart City

10

To give effect to these, Pikitup has identified key strategic interventions to implement the ten City priorities, read

with the GDS 2040 outcomes. Of these priorities, only seven are applicable to Pikitup and are stated below:

Priority 1 Good Governance

Pikitup has implemented an Anti-Corruption Strategy that supports the City’s priority of promoting a culture of

professional ethics and good governance.

Priority 2 Financial sustainability

Pikitup has participated in the implementation of revenue enhancement through continued implementation of

efforts to reduce the levels of incorrect billing and investigating systems to improve billing data at Landfill sites to

improve the financial sustainability of Pikitup.

Priority 4 Sustainable service delivery

Pikitup had in the prior financial year commenced with implementation of infrastructure renewal and refurbishment

and preventative maintenance. The capital expenditure budget of Pikitup continues to be directed towards this.

Priority 5 Job opportunity and creation

Pikitup intends to increase the number of Expanded Public Works Programme (EPWP) opportunities created as well

as the number of SMMEs and Co-Operatives supported.

Priority 7 Active and engage citizenry

Pikitup has intensified waste education and awareness at schools and communities to improve waste management

practices by our communities which in turn seeks to eradicate illegal dumping and littering.

Priority 8 Economic development

Pikitup intends to revise its waste diversion strategies to ensure that revenue can be derived from waste, not only

for our benefit, but for SMMEs and Co-Operatives.

Priority 9 Green-Blue economy

Pikitup continuously monitors gas emissions and leachate from its landfill sites as part of its landfill compliance

management plan, to ensure that the health of communities adjacent to these sites are not negatively affected.

There are other long-term projects that have been embarked upon to implement alternative waste treatment

technologies that are environmentally sustainable.


In addition, Pikitup has also in its delivery of services and programmes taken into account the applicable national

outcomes from the National Development Plan (NDP) as reflected below:

Outcome 2: A long and healthy life for all South Africans;

Outcome 4: Decent employment through inclusive economic growth;

Outcome 5: A skilled and capable workforce to support an inclusive growth path;

Outcome 6: An efficient, competitive and responsive economic infrastructure network;

Outcome 8: Sustainable human settlements and improved quality of household life; and

Outcome 10: Environmental assets and natural resources that are well protected and continually enhanced.

12

Pikitup strategic

goalObjective Explanation IDP Priority 10 Strategic Goals KPI Baseline 2019/20 Target

Goal 1:

Building an Efficient,

Effective and viable

waste management

company

Objective 1.1:

To ensure sound

internal controls and

good governance

In line with applicable legislation, the financial position

of the company needs to be sustained.

We are working with RSSC unit to assist with the

revenue collection measures put in place.

We are prioritizing the SCM process in this current

financial year (2019/20) to start with the processes for

2020-21 Capex budget. This will ensure that Capex

budget is committed timeously. This will be done within

the MFMA requirements.

Priority 7

Enhance

our financial

sustainability.

Priority 2

Financial sustainability

Percentage (%) of Capital Budget spent 86% 95%

Percentage (%) of SMME procurement

spend.

92.1% 30%

Percentage (%) of valid departmental

invoices paid within 30 days of invoice

date.

44.94% 95%

Reduction in disabling injury frequency

rate (DFIR)

3.6 2.5

Audit opinion obtained from Auditor-

General South Africa (AGSA)-

Unqualified with

findings

Clean audit

opinion obtained

from AGSA

Percentage (%) of resolution of Internal

Audit findings

83% Resolve 80%

of 2018/19 IA

findings

Percentage (%) of queries resolved within

7 days in accordance to the service level

standards.

80% 95%

Pikitup has comprehensively aligned its performance against strategic goals and objectives to the shareholder’s priorities as follows:

Pikitup Third Quarter Report (Jan-M

ar 2019-20)13

Pikitup strategic


Goal 2:

Integrated Waste

Management, Waste

Prevention and

Waste Minimization

Objective 2.1

To ensure that

waste to landfills is

minimized.

Various programmes are to be implemented to minimize

waste to landfill.

The approach entails appointment of community-based

co-operatives and entrepreneurs to take responsibility

for collecting and managing recycled waste, including in

informal settlements.

The programme also recognises the role of waste

reclaimers in the process and relevant interventions

are included to build partnerships with reclaimers and

recyclers in the roll out of separation at source.

Priority 9

Preserve our

resources for

future generation.

Priority 5 Job

opportunity and

creation

Average percentage (%) of landfill

compliance to GDARD regulations and

permit conditions as issued by DEA and

DWAF, related to:

Robinson Deep

Ennerdale

Goudkoppies and Marie Louise

94% 95%

Tons of green waste diverted 50 958 40 000

Tons of builder’s rubble diverted 8 224 40 000

Tons of dry waste diverted through Pikitup

interventions (paper, plastic, glass, cans)

25 991 38 000

Tons of waste disposed at the landfill sites 961 831 1 389 121

Objective 2.2

To ensure appropriate

infrastructure

is developed to

dispose of waste in a

sustainable manner.

The model of operations requires different infrastructure

such as integrated waste management facilities, buy

back centres, composting facilities and others. The

necessary infrastructure needs to be developed. The

entity will continue with the upgrading of 7 drop-off

centres into integrated waste management facilities that

include sorting facilities and buy-back centres where

feasible.

Priority 2

Financial sustainability

Number of drop off centres upgraded into

Integrated Waste Management Facilities

4 7

14

Pikitup strategic


Goal 3:

Effective and

Efficient Waste

Services

Objective 3.1

To ensure delivery of

effective and efficient

waste services

These services include domestic waste removal, street

cleaning, informal settlements as well as some public

owned facilities.

The objective is to ensure that these services are

rendered in efficient manner and that the highest

cleanliness levels are achieved. This will be achieved

through the implementation of Ward Based Operational

Model, clean-up campaigns such as KleenaJoburg,

rolling our street bins, eradication of illegal dumping

sites and ,rolling out of 240l wheelie bins to formalized

areas, improve refuse containment and collection in

informal settlements, hostels including backyard

dwellers by providing (85l) waste bags and 6m3 skips.

Priority 3

Create a culture of

enhanced service

delivery with

pride.

Priority 4

Sustainable service

delivery

Number of formal households receiving

weekly waste removal services

1 182 997 1 184 961

Percentage (%) of all City recognized

informal settlements provided with

integrated waste management services

164 informal

settlements

(69.34%)

100%

Improved City cleanliness levels in

targeted areas City-wide

Level 1 cleanliness 2

Number of illegal dumping spots

eradicated

N/A 6

Goal 4:

Realization of value

throughout the

Waste Value Chain

Objective 4.1

To use waste as

a resource for

poverty alleviation

and to create job

opportunities.

The City of Johannesburg has high levels of

unemployment, poverty and inequality. Waste

minimization provides opportunities to use waste as a

resource and these should assist communities to address

poverty alleviation and unemployment.

Reclaimers and cooperatives training programme in the

waste value chain with partners will be facilitated.

Various initiatives to use communities in cleaning of

areas have been identified through the Expanded Public

Works Programme. Targets are set for spending on BEE

companies, SMMEs and women owned companies.

Priority 2

Address inequality

Priority 5 Job

opportunity and

creation

Number of work opportunities created

through Expanded Public Works

Programme (EPWP).

5 002 1900

Goal 5

Partnerships

and Stakeholder

Engagement

5.1

Partner with

stakeholders to

minimize waste

Ensure that citizens

of Johannesburg take an active role

in their communities, are engaged as

members of a community and

participate as involved members of society.

Priority 6:

Create a City that

responds to the

needs of citizens,

customers,

stakeholders and

businesses

Priority 7:

Active and engaged

citizenry

n/a n/a n/a


1.3 Chairperson’s Report

During this reporting period, the shareholder appointed a new Board on 11 March 2020 at the AGM, and together

with my colleagues we hope that we would support the entity to the best of our abilities in meeting its mandate

as well provide the requisite oversight in line with good corporate governance. I have confidence in the skill set,

experience and knowledge of the newly elected as well as their commitment to delivering on the expectations of

the various stakeholders of the City of Johannesburg through Pikitup.I also wish to give our appreciation to the

retired board members who served the entity before us. .

Pikitup has had challenges meeting the required level of performance in the quarter mainly as a result of high

vacancy rate, unreliable fleet and ineffective contract management.

The business has also as with many others, began to experience the impact of of the the declaration of a national

state of disaster in response to COVID 19 with changes in the operations to ensure that during this period, Pikitup

continues to provide waste management services as an essential service.

The necessary COVID 19 safety precautions related to the entity’s aging workforce has seen it having to operate

in the latter part of the quarter with a less than optimal workforce, but continuity measures employed have seen

services delivered and the entity receiving acknowledgement for the work done during this difficult time. We

appreciate the efforts and hard work put in by the employees of Pikitup in delivering the service in spite of the

challenges that business has faced in the quarter under review.

I look forward to working under the leadership of the MMC Moerane as part of the EISD cluster in pursuit of

the strategic intent and the objectives of our shareholder, the City of Johannesburg and to the future that awaits

Pikitup as it sets out on a mission to enhance its effectiveness. I am confident that our quarter four performance

will improve significantly.

In closing, I would like to thank Pikitup management and employees for their dedication and effort to align their

skills and efforts towards contributing directly or indirectly towards the company goals.

Chairperson: Pikitup Board

Getty Simelane

16

1.4 Managing Director’s Report

I have pleasure in presenting the entity’s third quarter performance report. This being my very first performance

report as the recently appointed Managing Director of Pikitup gives me confidence and courage that we are on

the right path towards realising the objectives and outcomes outlined in Pikitup’s 2019/20 Business Plan and SDBIP.

I have spent the last three months assessing business performance, operations and financial performance of the

organisation. The outcomes necessitated that I introduce strategies to optimise efficiencies and improve service

delivery. Amid inherent challenges, I have noted significant progress made by the organisation in achieving the

targets set out in the Business Plan. Key amongst them is the establishment of a cordial relationship between

labour and management. I believe that a healthy and sound relationship with this stakeholder grouping sets a solid

foundation for a collaborative future of mutual understanding and support.

I joined Pikitup at the time when our new political leadership introduced the #KleenaJoburg campaign aimed at

mobilising the residents and business fraternity to assist the city in creating a clean and liveable city that attracts

investment and create jobs which is one of the SDBIP targets. I must confess, the train was moving at a very

fast pace which compelled me to jump onto the bandwagon with speed. Under the leadership of our MMC for

Environment & Infrastructure Services Department, Councillor Mpho Moerane and the previous Board I have seen

the #KleenaJoburg campaign growing from strength to strength. The campaign continues to enjoy the support of

various stakeholders and has gained a lot of traction, its success is attributed to our communities and councillors

who heeded the call.

Please join me in welcoming the new Pikitup Board of Directors. The appointment and announcement of the new

Pikitup Board on 11 March 2020 assured me that the road ahead will be voyaged with a leadership that is up for

the challenge. I am confident that we will draw from their wealth of knowledge and experience and Pikitup will be

taken to a higher trajectory – a world class waste management company that we all aspire it to be.

Pikitup set itself 18 targets for the year 2019/2020, 15 of which are measured quarterly. These were drawn from

the five Strategic Objectives of the organisation. Of the set targets only 6 were achieved and these are:

• Improved city cleanliness levels in targeted areas city-wide

• Number of formal households receiving weekly waste removal services

• SMME procurement spend

• Tons of waste disposed at landfill sites

• Tons of green waste diverted

• Reduction in disabling injury frequency rate (DFIR)

Notably there are many deliverables that were achieved by the various departments within the organisation which

is commendable.

A total of nine (9) KPI’s were not achieved due to a number of challenges such as delays in budget adjustments,

inadequate plant and equipment, poor implementation and budgetary allocation for the separation @ source

programme, aging fleet, delays in the signing of the MoU to kick-start the process of rehabilitating illegal dumping

spots. The other contributory factor is the national state of disaster (Covid-19), which resulted in normal activities

being seized. However, Pikitup developed and is implementing a Covid-19 response plan to ensure that its essential

services continue during the lockdown.


Mitigating strategies that have been put in place to address underperformance which will be implemented in the

4th quarter of the 2019/20 FY.

I have confidence that Pikitup will ultimately achieve its strategic goals and objectives as outlined in the Business

Plan. Our unsung Heroes at our depots continue to make us proud by waking up each and every day to ensure that

the streets of Johannesburg are kept clean. I salute you and words can never be enough to express my gratitude

for your continued support and solidarity.

A plan is underway to personally visit you at your respective depots to interact and converse about ways in which

we can work together to take our organisation forward.

Managing Director

Ms Bukelwa Njingolo

18

1.5 Chief Financial Officer’s Report

The entity realised a surplus for the quarter amounting to R80 735 000, with the commercial services contributing

R23 004 000 and municipal services (core) contributing R57 731 000. Expenditure is below budget (savings) for

the period with revenue continue to perform better than budgeted. Most of the budgeted activities were not fully

performed during the quarter with third party contractor savings amounting to R24 295 000, due to the dispute

with the panel of service providers that led to services not rendered during the period. Saving on employees cost

amounting to R27 423 000 relates to the delays in filling vacant positions and attrition.

The statement of financial position indicates a healthy financial position with a net asset position of R 319 656

938 (Q2: R238 921 617) as at 31 March 2020 and a cash balance amounting to R231 141 927. The cash balance

represents a cash coverage of 1.07 months which is within the targeted range of between 1 to 3 months. The

current and solvency ratios both indicate slight improvement from the second quarter which is now at 0.88 (Q2:

0.77) and 1.11 (Q2:1.08) respectively, mainly due to movement in current assets and liabilities. The payroll ratio is

now at 52%, above the treasury and CoJ targets of within 25% and 40%, mainly due to the increase of working

hours of recently absorbed former J@W and 2010 employees from a 3-day working week to a 5-day working

week.

Commercial services continued to struggle during the quarter due to lack of a reliable fleet to service customers.

Landfill revenue was accrued during the quarter due delays when capturing weighbridge slips at the landfills.

However, the process to capture data at the landfills has started and it is anticipated that it will be completed

during the month of April 2020.

Year to date capital expenditure is 64% with a total commitment of 93.3% (including actual) against a target

of 75%. The performance of capital projects was heavily affected by the non-approval of the capital mid-year

adjustment budget by the City and also the Covid19 lockdown. During the mid-year budget adjustment, Pikitup

requested a movement within a facilities group from S@S projects to general facilities.

Pikitup was declared an essential service when the COVID-19 lockdown was announced by South Africa’s President

during this quarter. The emergence of the Covid19 requires that the entity procures preventative equipment and

materials for the employeesduring the lockdown period. As at 31 March 2020, Pikitup has procured various

preventative equipment and materials which include sanitizers, soap, gloves and masks for the employeesat a

value amounting to R1 525 069. An amount of R196 million has been requested from the City to fund the

Covid19 activities for the next four months. The total projected cost for Covid19 amounts to R227 585 680 (R56

896 420 per month) and Pikitup will fund R31.6 million of the cost. The total projected cost includes augmented

services that are being executed during the lockdown period.

The total cumulative irregular expenditure amounts to R1 009 406 991, an increase of R39 854 752 from the

second quarter of the current year. The majority of irregular expenditure incurred relates to contracts that are

procured and managed by the City on behalf of the entity. The irregular expenditure mainly relates to multi-year

contracts and as much as these contracts are not yet condoned, the irregular expenditure amount will continue to

increase on a monthly basis until such time these contracts are condoned by the National Treasury.


The current quarter performance was an improvement from the second quarter of the current year. The performance

of the last quarter of the year (Q4) will be heavily affected by the declared lockdown. The current approved budget

will be under tremendous pressure to cushion the impact and demands of Covid19. Revenue collection will be

negatively affected due to poor economic performance during this period. I anticipate that there might be a need

to revise the 2020-21 budget before the final approval to take into account the impact of Covid19.

Chief Financial Officer

Mr. Litshani Matsila

20

1.6 High-level organisational structure

Pikitup is unable to fully achieve several its Business Plan initiatives as its human resources are inadequate for

providing service delivery excellence. The following intended interventions for the remainder of 2019-20 will

probably be impeded by COVID-19 restrictions:

• Decrease by 30% the 999 vacant positions

• Direct the skills development initiatives at improving service delivery

• Stabilise Employee attrition

• Set the employment equity targets on attrition and recruitment being aligned with skills and experience..

BOARD OF

DIRECTORS

MANAGING

DIRECTOR

EXECUTIVE

SECRETARY

OFFICE

MANAGER

CHIEF AUDIT

EXECUTIVE

(Vacant)

Chief Financial

Officer

Executive

Manaber: Legal &

Compliance

Chief Operations

Officer

Executive

Manaber:Corporate

Services (Vacant)

Executive

Manager: Human

Resources


CHAPTER TWO

CORPORATE GOVERNANCE

22

2. CHAPTER TWO: CORPORATE GOVERNANCE

Pikitup is committed to the highest standards of governance, ethics and integrity. Excellent corporate governance

is key to ensuring that we deliver on our commitments to our stakeholders through enhanced accountability,

rigorous risk and performance management and transparency.

Board of Directors

The Board is supported by 3 (three) Sub-Committees, namely

• The Human Resources, Remuneration, Social and Ethics Committee

• The Audit and Risk Committee

• The Service Delivery Committee

Pikitup has diversity among non-executive directors:

Non-Executive Directors by Race

Black 66%

White 33%

Non-Executive Directors by Gender

Female 33%

Male 66%

2.1 Board Composition, Key Activities & Meetings Attended by Board of Directors

The Board of Pikitup is comprised of nine (9) Non-Executive Directors and one (1) Executive Director: N Mkhize

(Chairperson), L Brenner, T Mafanya, S Bogatsu, J Snyman, C Mayne, T Zwane, L Verveen, V Mathebula. L Matsila

(Chief Financial Officer) is an ex-officio member of the Board, C Louw is the Company Secretary of the Board. This

Board was active until 11 March 2020.

2.1.1 Key Board Decisions

During the third quarter, the Shareholder held Pikitup's Annual General Meeting (AGM) on 11 March 2020 at

which Pikitup’ s audited financial statements and predetermined objectives together with the statutory reports

thereon were tabled and adopted by the shareholder.

At this meeting the Shareholder nominated and appointed the following Board Members Getty Simelane

(Chairperson), Neo Sepathle, Sheshile Nkwanyane, Maxwell Nedzamba, Joyce Radebe, Zenzokuhle Xaba, Godfrey

Tsotetsi , Mpho Mvuma, Sinazo Mtshengu and Bukelwa Njingolo (Managing Director) at the AGM of 11 March

2020. L Brenner and J Snyman were returned as Non-Executive Directors of Pikitup. The resignation of R Buys was

noted and confirmed. T Mafanya, S Bogatsu, J Snyman, C Mayne, T Zwane, L Verveen, V Mathebula and N Mkhize

were retired.


2.1.2 Meeting Attendance

The attendance at meetings and other engagements held during the quarter were as follows:

Table no. Meeting Attendance

Description BOD ARC SEHRC SDC AGM

Number of meetings 1 1 1 1 1

Bogatsu S 1 1 1 1

Brenner, L 1 1 1

Buys, R -

Hattingh, W -

Mafanya T 1 1

Malope, S 1 1 1

Mathebula, V 1 1 1

Mayne C 1 1 1

Mkhize, N 1 1

Njingolo, B

Snyman, J 1 - 1

Verveen, L 1 1

Zwane, T 1 1

In March 2020 the newly appointed Board members held the second Board meeting for the period under review. All new Board

members were in attendance, due to COVID-19 the meeting was held on an online platform.

2.1.3 Board Committees and Members

Audit and Risk Committee (ARC)

L Brenner (Chairperson), T Zwane, W Hattingh and S Malope.

The ARC met once during the quarter under review. The Audit and Risk Committee is a statutory committee of the

board appointed in terms of section 94(7) of the Companies Act, 2008. It has duties assigned to it by the board over

and above its statutory duties. Specific responsibilities include providing oversight in respect of the effectiveness

of Pikitup’s finance function, external and internal assurance services, and risk management with particular focus

on combined assurance arrangements and the relationship between external and internal assurance providers and

Pikitup. The Committee has a board approved charter and work plan.

The board confirms that the committee has discharged its mandate during the period under review.

Social, Ethics and Human Resources Committee (SEHRC)

Louis Verveen (Chairperson), B Bogatsu and C Mayne,

The SEHRC met once during the quarter under review. This Committee advises the Board and has oversight of

the human resources strategy and supporting policies and practices for Pikitup’s Employees and its Directors. The

oversight includes monitoring the implementation and effectiveness of that strategy and all the related policies and

practices. The Committee has a Board approved Charter and Work Plan.

24

The establishment of this Committee is in terms of the Companies Act, 2008 and its social and ethics responsibilities

are detailed in its terms of reference that include its that flow from the Companies Act of 2008, King IV on

governance, and other responsibilities allocated to it by the Board. The Board confirms that the Committee has

discharged its mandate during the period under review.

Service Delivery Committee (SDC)

V Mathebula, J Snyman, T Mafanya (Chairperson)

The SDC met once during the quarter under review. This Committee oversees the strategy formulation and

implementation at an operational level. It is responsible for directing how technology and information should be

dealt with at Pikitup. That responsibility includes approval of an ICT (Information Communications Technology)

philosophy and the ICT strategy. Doing so contributes to ensuring that Pikitup derives value from its information

systems investments.

The Committee also guides and monitors the implementation of business systems projects, review the rationale for

new system implementation and upgrades and enhancements, and ensures the alignment thereof with Pikitup’s

strategic direction. The Board confirms that the Committee discharged its mandate during the period under review.

Company Secretarial Function

The primary function of the Company Secretary is to act as the link between the Board and Management

and to facilitate good relationships with the Shareholder. The function includes the responsibility for ensuring

good corporate governance compliance by guiding the Directors on the principles and applicable legislation.

The responsibility bridges general administration which includes the submission of all statutory returns to the

Companies and Intellectual Property Commission. The Company Secretary is certified in terms of section 268(d)

of the Companies Act.

Risk and ICT Performance Management

Pikitup’s risk management process is aligned with the principles of good corporate governance provided in the

Municipal Finance Management Act No. 56 of 2003 (MFMA), the King IV Report on Good Governance for South

Africa, and National Treasury guidelines on the management of risks by government entities. The alignment

contributes to being responsive, being accountable, and being administratively productive.

The comprehensive Enterprise Risk Management Framework requires that Pikitup conducts regular risk assessments

with appropriate risk responses. The efficacy of the risk responses is subject to regular monitoring and reporting

to the governance structure.


2.2 Enterprise Risk Management

The company has adopted an ISO (International Organization for Standardisation) accredited Risk Management

Process of Risk Identification, Monitoring and Review, Communication and Consultation. The ISO standard is to be

applied within existing management systems to formalize and improve risk management processes and as part of

strategic management implementation. Subsequently, when implementing the ISO standard, attention is given to

integrating existing risk management processes in the new paradigm addressed in the standard. The Pikitup risk

management framework therefore centres on:

• Transferring accountability gaps in enterprise risk management;

• Aligning objectives of the governance frameworks with ISO 31000;

• Embedding management system reporting mechanisms;

• Creating uniform risk criteria and evaluation metrics.

Risk Identification

The Board approved the revised Risk Management Policy in 2019, which included the Risk Management Strategy

and Methodology. The approved policy documents provide the company with a strong foundation for an efficient

and effective ERM programme. A risk assessment was undertaken as part of the process of:

• Identifying Operational Risks;

• Identifying and assessing Strategic Risks

• Setting the risk appetite and tolerance levels

The Strategic Risk Assessment focused primarily on risks that are strategic in nature and have an impact to the

achievement of the strategic intent and value propositions as per the business plan. A workshop and brainstorming

technique were implemented as part of the risk assessment process. This allowed collection, sharing of ideas and

strategic discussions of the events that could impact the achievement of objectives, stakeholder expectations and

key dependencies. The process of ERM matured not only to assessment and monitoring of Strategic Risks (top

down approach) but to a (bottom up approach) with the following processes implemented:

• Operational Risk Assessment

• Fraud Risk Assessment

• Ethics Risk Assessment

• Compliance Risk Assessment

• Risk Assessment and Treatment

26

Once risks have been identified, they must then be subjected to a consistent assessment process to ensure that

Pikitup achieves an objective and holistic result that can inform its risk profile. Pikitup has 6 (six) strategic risks as

follows:

Below is a list of six (6) strategic risks for Pikitup business along with strategic goals:

# PIKITUP GOALS 2019/20 RISK TITLE IH RR

1 Integrated Waste Management, Waste Prevention and Waste MinimizationUnavailability of waste

management infrastructure25 25

2 Effective delivery of Waste Services Inadequate and ineffective fleet 20 15

3 Integrated Waste Management, Waste Prevention and Waste MinimizationDeterioration of the city

cleanliness level20 15

4 Building an Efficient, Effective and Viable Waste Management Company ICT failure 15 15

5 Effective delivery of Waste Services Labour unrest 12 9

6 Building an Efficient, Effective and viable waste management company Inadequacy of human resources 12 9

The Board is cognisant of the strategic and operational risks associated with creating sustainable value for our

stakeholders and addresses these risks through an integrated risk management philosophy. The Audit and Risk

Committee are mandated by the Board to establish, coordinate and drive the risk process throughout Pikitup. It has

overseen the establishment of a combined assurance programme by approving a combined assurance plan which

has been implemented in quarter one, and progress is being monitored.

In the quarter under review there has been no movement in the risk rating of the strategic risks. The mitigations

associated with the strategic risks have a number of dependencies such as recruitment of staff, EISD

project implementation and budget and are therefore long-term mitigation strategies. On risk number 1 there has seen some positive movement in that there have been several infrastructural projects related to the

upgrade of Depots that have been concluded in the quarter. These are due to continue into quarter. This risk also

relates to the unreliability of the Pikitup fleet. While there has been commencement with a tender process for the

procurement of new fleet, the realisation or receipt of new fleet following the conclusion of the tender is at least

a year and a half away, and until then, Pikitup is forced to contend with the undesirable fleet arrangements.

During quarter three, the management of contracts continued to pose a risk This has signified the requirement for

enhanced controls via the establishment of a Project Management Office that will manage all projects and related

contracts on behalf of Pikitup.

Technology and information governance

The Board is accountable for IT (Information Technology) governance and its Executive acknowledges the critical

role technology plays in business in terms of competitiveness, information and security. The Board is not satisfied

with the governance of IT and the leadership gaps in the ICT functional areas. Pikitup has ageing systems,

disparate systems that are negatively affecting the performance and sustainability objectives of Pikitup. Oversight

of technology and information management is currently exercised by the Chief Operations Officer.


Off-site disaster recovery has not been implemented and tested and the recent ICT security breaches experienced

by the City of Johannesburg negatively affected the recovery time for Pikitup. In the absence of the requisite

leadership to champion ICT governance and support, Pikitup intends to appoint a third-party service provider

to help develop Pikitup’s IT strategy and management. Areas of focus include integration of technology and

information across multiple platforms and processes, business intelligence, information security and appropriate

technology architecture.

2.3 Anti-corruption and fraud Investigations (including forensic investigations)

The Fraud Prevention Strategy and Plan guides Pikitup in mitigation, control and reduction of fraud. It is a plan

that details mechanisms for early detection of fraud and professional investigation of offences to minimise

negative effects. The plan addresses possible risks, root causes and controls in each Pikitup functional area. The

investigation of fraud is undertaken by the City of Johannesburg’s Forensic and Investigative Services Department.

There have been several referrals for investigation. The challenges experienced are the delays in the finalisation of

investigations. In the third quarter, Pikitup’s Internal Audit Department commenced with the investigation of UIFW

(Unauthorised Irregular Fruitless and Wasteful) and this ought to see the speedy conclusion of investigations and

consequence management.

2.4 Compliance with Laws & Regulations (% compliance with laws, impact thereof & mitigating actions on non-compliance areas)

Pikitup’s compliance function is responsible for monitoring compliance with all regulatory obligations. Our

Compliance Programme is designed to identify and understand applicable legislation and regulations, provide

appropriate employee training and ensure that, where possible, compliance requirements are embedded in our

operational processes and controls. To test adherence to regulatory obligations on an ongoing basis, we execute

appropriate risk-based compliance monitoring plans and employ external assurance providers. The legislation that

Pikitup is obliged to comply with is listed in table 2.4.1 below and compliance against this legislation is assessed

quarterly.

Table 2.4.1: Regulatory Universe

Legislation Jurisdiction

Atmospheric Pollution Prevention Act, 45 of 1965 National

Basic Conditions of Employment Act, No. 75 of 1997 National

Broad-based Black Economic Empowerment Act, No. 53 of 2003 National

The Constitution of the Republic of South Africa Act No. 108 of 1996 National

Civil Proceedings Evidence Act, No. 25 of 1965 National

City of Johannesburg Waste Management By-Laws Provincial

Companies Act 71 0f 2008 National

Competition Act, No. 89 of 1998 National

Consumer Protection Act, No. 68 of 2008 National

Copyright Act, No. 98 of 1987 National

Criminal Procedure Act, No. 51 of 1977 National

Department of Water Affairs and Forestry. 1998: Minimum requirements for waste disposal by landfill,

(2nd Ed), Republic of South AfricaNational

Designs Act, No. 195 of 1993 National

28

Legislation Jurisdiction

Electronic Communications and Transactions Act, No. 25 of 2000 National

Employment Equity Act, No. 55 of 1998 National

Income tax Act, No. 58 of 1962 National

Information Act, No. 70 of 2002 National

King IV Code on Corporate Governance National

Labour Relations Act, No. 66 of 1995 National

Legal Deposits Act, No. 54 of 1997 National

Medical Schemes Act, No. 131 of 1998 National

Municipal Finance Management Act, No. 56 of 2003 National

Municipal Structures Act, No. 117 of 1998 National

Municipal Systems Act, No. 32 of 2000 National

National Archiving Act, No. 43 of 1996 National

National Environmental Management: Air Quality Act No 39 of 2004 National

National Environmental Management Biodiversity Act, No. 10 of 2004 National

National Environmental Management Waste Act No 59 of 2008 National

National Health Act, No. 61 of 2003 National

National Road Traffic Act, No. 93 of 1996 National

National Water Act, No 36 of 1998 National

Occupational Health and Safety Act No. 85 of 1993 National

Pension Funds Act, No., 24 of 1956 National

Preferential Procurement Policy Framework Act, No. 5 of 2000 National

Prescription Act, No. 68 of 1969 National

Promotion of Access to Information Act, No. 2 of 2000 National

Promotion of Administrative Justice Act, No. 3 of 2000 National

Protected Disclosures Act, No. 26 of 2000 National

Protocol on Governance in Public Sector National

Public Audit Act, No. 25 of 2004 National

Road Traffic Act, No. 29 of 1989 National

Road Accident Fund Act, No. 56 of 1996 National

Skills Development Act, No. 97 of 1998 National

Skills Development Levy Act, No. 9 of 1999 National

Stamp Duties Act, No. 77 of 1968 National

Tax on Retirement Funds Act, No. 38 of 1996 National

The Compensation for occupational Injuries and Diseases Act, No. 130 of 1993 National

The Environment Conservation Act No. 73 of 1989 National

The National Environmental Management Act No. 107 of 1998 National

Unemployment Insurance Act, No. 63 of 2001 National

Unemployment Insurance Contributions Act, No. 4 of 2002 National

Value Added Tax Act, No. 89 of 1991 National


The Pikitup Compliance function has in the third quarter undertaken compliance risk assessments as per the

Annual Compliance Coverage Plan. Weaknesses identified have been met with remedial action that is being

monitored and reported quarterly to the Audit and Risk Committee and the Board.

In addition, Pikitup has implemented an Ethics Programme that requires all our Employees to declare their

interests each year and as and when their circumstances change. To this end, Pikitup has performed as tabled

below, regarding the declarations of interest from various levels of employees in the entity. An EXCO approved

improvement plan has been implemented and is likely see Pikitup improve in this regard in Q4:

Employee Level Job Function 2019 / 2020 %

A Level General Workers 588 13%

B Level Drivers, team leaders 389 78%

C Level Supervisors 58 30%

D Level Regional Managers and specialists 70 89%

E Level General Managers 8 100%

F Level Senior Management 6 100%

G Level Directors 10 100%

Total 1129 21%

Compliance monitoring against pre-determined legislation was assessed in the quarter and Pikitup achieved 41% compliance. The remediation of the non-compliance requires the speedy finalisaion of the open tender procurement of new fleet, more training on the revised Accounts Payable Policy, increased consequence management for non-compliance, and enhancement of the contracts’ expiry alert system.

: 1Section 65 (2) (e) of MFMA Section 99 (1) and 2

(b) of MFMA

2

MFMA Section 11, 54, 71, 72, 75 in Year

Reporting, MFMA Circular 88. Rationalization

Planning and Reporting Requirements for 2019, MFMA Circular 94, Municipal Budget Circular for

2019-2020 for MTREF.

3MFMA Circular 68. MFMA Act. No. 56 of 2003. Sections 1, 32(2), 32(4), 62(1) (d) and 74 of

MFMA.

4 MFMA Circular 68. MFMA Act. No. 56 of 2003. Section 32 (2) (a) and (2) (b)

5 MFMA Circular 76. MFMA Act. No. 56 of 2003. Section 171 and 173 of MFMA, MBRR, Section 74.

6 MFMA Circular 80

7 DORA Section 33

8Municipal Systems Act (MSA) section 4 (2) (a), Section 65(2) (e) of MFMA, Companies Act, 208, Section

75, King IV, practice note 25

9 Income Tax Act, 1962, Act No. 58 of 1962, MFMA Circular 90, Section 112(1) of MFMA

10MFMA Circular No 96, SCM Regulation 32, MFMA Circular No. 62. SCM Demand management and

procurement plans.

11 NEMWA and landfill permit licenses

12 Local Government: Municipal Cost Containment Regulations, (MCCR Circular 97.)

13King IV Report on Corporate Governance, 2016. Part 5.2, 5.3 and part 6.2.

Compliance Institute of South Africa. Compliance Handbook for members, 2008, Section 11

30

CHAPTER THREE

SERVICE DELIVERY PERFORMANCE


3. CHAPTER THREE: SERVICE DELIVERY PERFORMANCE

Pikitup’s service delivery performance in the various regions of the City of Johannesburg is illustrated in the overview

below.

The services are provided according to the legislative prescripts of integrated waste management regarding:

• Demographic information.

• Assessment of waste generation, quantities and types.

• Service status quo of collection, minimization, re-use, recovery, treatment and disposal of waste.

• Determination of people not receiving waste collection services.

• Identification of poor waste management and the negative impact on health and the environment.

• Targets and the implementation of initiatives for waste minimization, re-use, recycling and recovery.

• Incorporation of best environmental practices.

• Identification of implementation measures.

• Planning of new facilities for disposal and de-commissioning of existing waste disposal facilities.

• Indication of financial resources required to implement projects.

Pikitup’s services therefore entail:

• Informal and formal settlement waste management services.

• Waste minimization through green waste diversion activities, builders’ rubble, and dry recyclables.

• Refuse collection rounds (RCR).

• Street cleaning.

• Clearing of illegal dumping.

• Fleet availability management.

• Waste disposal.

• Commercial refuse collection.

32

Pikitup provides commercial waste management services. The commercial services offered by Pikitup are as follows:

Service Description Offering

Bulk services Large waste quantities from individual customers using skips scheduled & on call

Business Dailies Daily collection services of largely wet waste from business customers

Special Events Waste management for sports, cultural or other events

Landfill Services Landfill usage by customers at landfill sites

Safe Disposal Collection and disposal of expired food stuffs

3.1 Waste Management Services

3.1.1 Formal Households Domestic Refuse Collection Rounds (RCR) Service Points

A total of 1 454 124 households were provided a waste collection service during the operational period under

review as compared to 1 366 312 households in the previous quarter, which depicts an increase of 6.4% of a

number of households provided a weekly kerb side collection, within 7 days, through RCR.

Table 3.1.1: Formal Households per Depot (Service Points)

COJ REGION DEPOT NUMBER OF FORMAL HOUSEHOLDS SERVICE PROVIDED

E Norwood 75 883

Weekly curb side collection,

within 7 days, through RCR

E Marlboro 89 753

B Waterval 56 100

A/B/C Randburg 210 000

D Central Camp 86 462

F Southdale 83 341

F Selby 36 746

D/G Avalon 144 630

G Orange farm 91 559

D Zondi 130 447

C Roodepoort 145 753

A Midrand 303 450

Total 1 454 124


3.1.2 Informal settlements

Pikitup provides a combination of the following integrated waste management services in the informal settlements.

• Informal households/dwellings are issued weekly with a plastic bag. In some instances, the bag collection is

undertaken in parallel with the weekly formal household Refuse Collection Rounds (RCR). The compactor truck

cannot access large proportions of the areas because of the poor road networks and the large concentration

of units. Residents of the informal dwellings are therefore required to walk to demarcated points to place their

bags for loading in the compactor truck and transportation to disposal sites.

• Litter picking, side sweeping at arterial roads or main streets, and removal of illegal dumping.

• Communal bulk containers (skips) placed at designated areas within informal settlements are collected daily

and, in some instances, weekly or as scheduled by Pikitup.

The Cleaning Programme in the City’s 211 recognized informal settlements continues and a total of 12 946 tons

of general waste generated by these informal settlements was collected by the Entity. The bulk of that waste was

generated by the Marlboro Depot servicing the Alexandra Township and the surrounding informal settlements,

followed by Midrand servicing Diepsloot and Ivory/Ebony Park areas.

Randburg Depot is characterized by several informal settlements however there are no Employees dedicated to

providing cleaning services at these settlements. The bulk of the waste in the Randburg informal settlements is

collected through illegal dumping. This is one of the City’s regions characterised by informal settlements so the

enabling of appropriate waste management services requires adequate resources at this Depot.

34

3.1.3 Collection Time and Rate

As depicted by the figure below, Southdale collection rounds were completed beyond the targeted time of 17h00

during the operational period under review.

In the main, this underperformance is attributable to the regular breakdown of waste collection vehicles. In some

instances, absenteeism of RCR crew members and or shortages contribute to the under-performance in this regard.

Furthermore a motivation has been advanced to the Pikitup Human Resources Unit to recruit for general hands

to augment the RCR activity and other critical posts relating to this function, i.e. consistent supervision of the

activities in this regard.

All outstanding rounds within a week’s period of the operational period in line with the SDA was employed, which

resulted in a number of delayed rounds being cleared on a weekly basis. An aggregated 96% waste collection was

achieved, which is below the targeted completion rate of 100%. This however came at a cost of overtime and the

exorbitant cost associated with the use of ad-hoc vehicles.

However, it can be noted in the figure above that, Avalon; Marlboro; Randburg; Roodepoort and Orange Farm

depots at varying months during this operation period achieved far below the desired completion rate of 100%.


Table 1: January 2019/20

DepotActivity

TypeRCR Rounds PIU Units

Ad-hoc Units

Total Units

Daily Average

PIU Available

Daily Average PIU

Breakdowns

Daily Average Ad-Hoc

Breakdowns

Total Vehicles

Available

Daily Average Excess / Short of Vehicles

Average PIKITUP

RCR Vehicles

Availability

Avearge RCR Vehicle Availability Achieved

Avalon RCR 10 6 5 11 5 1 0 10 0 52% 100%Central Camp RCR 9 10 2 12 8 2 0 10 1 86% 100%Marlboro RCR 18 11 11 22 7 4 0 18 0 39% 100%Midrand RCR 19 7 14 21 6 1 0 19 0 29% 100%Norwood RCR 12 8 9 17 5 3 0 14 2 43% 100%Orange Farm RCR 6 7 0 7 6 1 0 6 0 96% 100%Randburg RCR 20 10 16 26 7 3 1 22 2 34% 100%Roodepoort RCR 19 20 4 24 16 4 0 20 1 84% 100%Selby RCR 8 8 4 12 5 3 0 9 1 68% 100%Southdale RCR 11 10 4 14 7 3 0 11 0 64% 100%Waterval RCR 8 8 5 13 6 2 0 11 3 78% 100%Zondi RCR 15 12 5 17 10 2 0 15 0 66% 100%

155 117 79 196 88 29 1 165 10 62% 100%

DAILY AVERAGE RCR FLEET BREAKDOWN & AVAILABILITY FOR THE MONTH OF JANUARY

Table 2: February 2019/20

Depot Activity Type

RCR Rounds

PIU Fleet Units

Ad-hoc Units

Total Fleet Units

Breakdowns @ 08:00

Breakdowns @ 12:00

Breakdowns @ 15:00

Total Ad-Hoc Breakdowns

Total Vehicles Available @ 08:00



RCR Vehicle

Availability @ 08:00

RCR Vehicle


RCR Vehicle


End of Shift RCR

Fleet Availability

Avalon RCR 10 6 5 11 1 1 1 0 10 10 10 98% 100% 100% 99%Central Camp RCR 9 9 2 11 2 1 1 0 9 10 10 100% 100% 100% 100%Marlboro RCR 18 11 11 22 4 4 3 1 18 17 18 98% 97% 99% 98%Midrand RCR 19 8 14 22 1 1 1 0 21 21 21 100% 100% 100% 100%Norwood RCR 12 7 9 16 2 2 2 0 14 14 14 100% 100% 100% 100%Orange Farm RCR 6 7 0 7 0 0 0 0 7 7 7 100% 100% 100% 100%Randburg RCR 20 10 16 26 5 3 3 1 20 22 22 98% 100% 100% 99%Roodepoort RCR 19 20 4 24 5 2 2 0 19 22 22 100% 100% 100% 100%Selby RCR 8 8 4 12 2 2 2 0 10 10 10 100% 100% 100% 100%Southdale RCR 11 11 4 15 2 1 1 0 13 14 14 100% 100% 100% 100%Waterval RCR 8 7 5 12 3 3 2 0 9 9 9 100% 100% 100% 100%Zondi RCR 15 12 5 17 1 1 1 0 15 16 16 100% 100% 100% 100%

155 116 79 195 29 20 19 3 163 172 173 99% 100% 100% 100%

DAILY AVERAGE RCR FLEET BREAKDOWN & AVAILABILITY FOR THE MONTH OF FEBRUARY

Table 3: March 2019/20

Depot Activity Type

RCR Rounds

PIU Fleet Units

Ad-hoc Units

Total Fleet Units

Breakdowns @ 08:00

Breakdowns @ 12:00

Breakdowns @ 15:00

Total Ad-Hoc Breakdowns




RCR Vehicle


RCR Vehicle


RCR Vehicle


End of Shift RCR

Fleet Availability

Avalon RCR 10 6 5 11 1 1 1 0 10 10 10 100% 100% 100% 100%Central Camp RCR 9 9 2 11 3 3 3 0 8 9 8 94% 94% 93% 94%Marlboro RCR 18 11 11 22 5 4 4 1 17 17 18 96% 99% 98% 97%Midrand RCR 19 8 14 22 1 1 1 0 21 21 21 100% 100% 100% 100%Norwood RCR 12 7 9 16 2 2 2 1 14 14 14 100% 100% 100% 100%Orange Farm RCR 6 7 0 7 1 1 1 0 6 6 6 100% 100% 100% 100%Randburg RCR 20 10 16 26 6 3 5 10 18 20 19 90% 100% 94% 95%Roodepoort RCR 19 20 4 24 6 5 5 1 18 18 19 92% 97% 98% 96%Selby RCR 8 8 4 12 2 2 2 0 10 10 10 100% 100% 100% 100%Southdale RCR 11 11 4 15 4 4 4 0 11 11 11 100% 100% 99% 100%Waterval RCR 8 7 5 12 2 2 2 1 10 10 10 100% 100% 100% 100%Zondi RCR 15 12 5 17 3 3 2 1 14 14 14 95% 94% 96% 95%

155 116 79 195 34 30 32 15 157 161 159 97% 99% 98% 98%

DAILY AVERAGE RCR FLEET BREAKDOWN & AVAILABILITY FOR THE MONTH OF MARCH

It must be noted that unplanned RCR overtime is also dependent on driver and loader availability. The above RCR

fleet availability as well as the unplanned overtime cost will be addressed through the awarding of a new fleet

contract and re-fleeting process in the future.

36

3.1.4 Fleet Management

The current A426 contract (Category C - Specialised Waste Management Fleet that comprises of Refuse Collection

Round Compactors, Front End Loader Compactors, Roll on Roll off Truck and Skip Bin Lift-on’s) ended 30 November

2017 but was extended for 4 months until 31 March 2018 with a further extension until 31 August 2018. A

Regulation 36 was approved for the month of September 2018 with the current service provider (Avis). It must be

noted that CoJ approved a Regulation 36 extension with the current service provider (Avis) that started on the 1st

of October 2018 until 31 March 2019. The Group Corporate Shared Services (GCSS) department have extended

the current 426/13 (Specialised Waste Management Fleet) contract again until the end of March 2020. Group

Corporate Shared Services (GCSS) is in the process of a Reg. 36 extension with the current fleet service provider

until such time the Pikitup specialised fleet tender is finalised..

The A400 contract (Category A - Full Maintenance Lease – Non-specialised Fleet that comprises of Caged Trucks,

7 Seater panel vans, Half Ton Bakkies and Wheelie Bin Transport Truck) on a 5-year contract ended on 31 October

2017 and was extended to 31 March 2018; with a further extension to 31 October 2018 on a month to month

basis. The final Pikitup Specialised Fleet Procurement BSC meeting was held on 26 September 2018, however,

the tender was placed on hold due to Technical Specifications in the Tender document not meeting the entity’s

requirements, and a Regulation 32 was awarded to Afrirent for a duration of 30 months until end April 2021.

3.1.5 Bin Distribution

During the period under review a total of 491 wheelie bins were distributed throughout the City as compared to

671 distributed in the previous operational period. Low distribution of waste containment bins is as a result of a

non-valid bin supply contract. A supplier for 240l wheelie bins was secured during March 2020, and an intensified

replacement of stolen and or damaged bins will be executed from the month of April 2020. A roll-out to newly

developed formalised areas is also going to form part of the bin issuance programme anticipated in April 2020.

3.1.5.1 Number of Bins Distributed per Depot in Q3

New Additional Damaged Stolen New Additional Damaged Stolen New Additional Damaged StolenAvalon 0 0 0 0 0 0 0 0 0 0 0 0 0Central Camp 0 0 0 0 0 0 0 0 0 0 0 0 0Marlboro 0 0 0 0 0 0 0 0 77 8 11 5 101Midrand 41 22 10 6 27 0 10 4 2 0 0 0 122Norwood 0 0 0 0 0 0 0 0 0 0 0 0 0Randburg 0 0 0 0 0 0 0 0 0 0 0 0 0Roodepoort 0 0 0 0 0 0 0 0 0 0 0 0Selby 0 0 0 0 0 0 0 0 143 15 97 13 268Southdale 0 0 0 0 0 0 0 0 0 0 0 0 0Orange Farm 0 0 0 0 0 0 0 0 0 0 0 0 0Waterval 0 0 0 0 0 0 0 0 0 0 0 0 0Zondi 0 0 0 0 0 0 0 0 0 0 0 0 0

Total 41 22 10 6 27 0 10 4 222 23 108 18 491

TotalNumber of Bins Issued

Jan-20 Feb-20 Mar-20Depot

3.1.6 Number of illegal dumping spots cleaned and cleared

A total of 8 750 visits were made to clear and clean illegal dumping spots during the period under review. This

has become a repetitive activity due to communities continuing to dump illegally at the cleared spots, increased

backyard dwellings, residents not availing bins for collection by Pikitup and dumping refuse illegally. A lack of law

enforcement against illegal dumping are some of the contributing factors affecting illegal dumping.


Table 3.1.6.1: Number of visits per Deport to clear/clean illegal dumping spots.

Depot Q3

Avalon 325

Central Camp 159

Marlboro 1516

Midrand 210

Norwood 520

Randburg 165

Roodepoort 257

Selby 5020

Southdale 74

Waterval 99

Orange farm 88

Zondi 317

Total 8750

The table above illustrates the number of times these spots have reoccurred at the various depots which had to be

cleared and or cleaned.

Table 3.1.6.2: Number of Illegal Dumping Spots Eradicated per Depot

Depot

Avalon 0

Central Camp 2

Marlboro 3

Midrand 1

Norwood 1

Randburg 0

Roodepoort 0

Selby 0

Southdale 0

Waterval 0

Orange farm 8

Zondi 0

Subtotal 15

Table 3.1.6.2 above illustrates that 15 of illegal dumping spots were eradicated during the period being reviewed.

3.1.7 Street Cleaning and Litter Picking

The street cleaning activity generated 29 504 tons of waste to the total tonnage of waste handled by the Entity.

The Selby Depot that services the inner City and surrounds is the largest contributor to excessive littering and

illegal dumping. Pikitup continues to create awareness of good waste management practices. Enforcement of

related by-laws also contribute to addressing challenges like illegal trading and businesses not subscribing to waste

management services.

38

3.1.8 Tons of waste handled and collected through Pikitup activities

Illustrated by the table below are consolidated waste tonnages which were collected during the period under

review. Depicted hereunder is an increase of 380 197 tons when compared to the same period, the previous year,

where a tonnage of 265 779 was handled by the entity. The tonnage increase represents a waste generation

increase of 43% comparing the two similar operating periods. This is largely influenced by intensified collection

of RCR and illegally dumped waste.

Table 3.1.8.1: Total tons of waste handled and collected by the entity

Waste

Disposed Per

Activity

2018

/19

Tota

l ton

nage

s of

was

te h

andl

ed a

nd

colle

cted

Annual

Total for

2018/19

2018/19

Quarter 1

2018/19

Quarter 2

2018/19

Quarter 3

2018/19

Quarter 4

2019

-20

Tota

l ton

nage

s of

was

te h

andl

ed a

nd

colle

cted

2019/20

Quarter 1

2019/20

Quarter 2

2019/20

Quarter 3

RCR 612 818 136 039 154 582 152 578 169 619 170 095 165 580 195 984

Street

Cleaning82 839 20 013 21 383 18 991 22 452 23 257 26 660 29 504

Illegal

Dumping291 751 65 879 77 036 70 528 78 308 28 115 74 041 101 306

Hostels 4 699 931 1 606 1 035 1 127 1 094 16 283 1 195

Recognized

Informal

Settlements

51 711 10 639 19 287 10 699 11 086 12 145 12 958 12 946

Garden Sites 57 262 25 010 6 117 11 948 14 187 4 644 28 094 39 261

Total 1 101 080 258 511 280 011 265 779 296 778 239 349 323 616 380 197

Table 3.1.7.1: Represents Street Cleaning and Litter Picking Tons for the Quarter


3.2 Integrated Waste Management, Waste Prevention and Waste Minimisation

Integrated Waste Management is an approach to waste management that focuses on holistic management of

waste streams with the objectives of minimising waste, growing recycling and disposal efficiencies, and reducing

associated health and environmental impacts. Its successful implementation results in cost savings as well as

a reduction in the impact that the disposal of waste has on the environment. This holistic service involves the

management of waste streams from point of generation to final disposal. With recent legislative changes relating

to waste management, and the industry’s general desire to minimise its environmental impact, Pikitup has

experienced significant pressure to provide innovative waste management solutions.

3.2.1 Waste Minisation Performance

Waste diversion reduces the disposal of waste at landfills through various services and programmes, which are

continually reviewed in order to optimise process design and delivery. The lack of human and financial capital to

optimally implement the Pikitup Waste Diversion Programme around the City of Johannesburg has resulted in the

poor performance against several of the programme targets. The Programme has had to be revised to meet its

primary intention, namely source reduction, material reuse, recycling, composting, and business development.

Source Reduction - Reducing the amount of waste generated at source is the key to effective waste management.

Source reduction can be achieved through elimination of excess packaging, production of more durable goods,

and promotion of responsible consumer packaging.

Material Reuse - Post-industrial and post-consumer reuse of materials in their original form can displace the need

for new production. Examples of material reuse includes refillable beverage containers and the recovery of reusable

doors and window frames from construction and demolition debris or rubble.

Recycling - Recycling or reprocessing of post-industrial and post-consumer residuals can displace the need for

virgin material in the production of new consumer goods. For example, newsprint, corrugated cardboard and bond

paper can be recycled to displace much of the virgin fibre used in the production of new paper products. Plastics,

metals and glass can also be recovered from the waste stream and recycled as new products.

Composting - Most organic material, including fruit and vegetable waste and many non-recyclable paper products,

can be broken down to humus through decomposition. Compost can be used as a soil amendment or as cover

material on disturbed lands.

Business Development - The waste diversion challenges were overcome by Pikitup’s revision of its Source Separate

Programme – the partnering with the private sector, co-operatives, and waste reclaimers for economic benefit.

The 134% (33 579 versus 25 000 tons) achievement of the target for the diversion of green waste, builders’

rubble, and dry recyclable waste was due to a substantial diversion of green waste through Pikitup’s garden sites.

40

3.2.2 Green Waste Diversion

22 640 tons of green waste was diverted against a target of 10 000 tons, which is 226% of the set target. The

substantially large diversion is due to the influx of residents dropping off garden waste in Pikitup garden sites

allocated around City. The green waste is then shredded at the two main hubs namely Ballyclare and Panorama.

The shredded green waste is then transported to a private compost facility for further processing.

3.2.3 Builders Rubble Diversion

2 288 tons of builders rubble was collected against a targeted 5 000 tons. This is an under-achievement of 46% is

due to the inoperability of the crushing plant and equipment during the rainy and wet climate which was

experienced frequently in Johannesburg and had a delay impact on meeting the target.

3.2.4 Dry waste Diversion

8 651 tons of dry waste was diverted against a target of 10 000 tons. This is an under-achievement of 87% of

the set target. Even though there is an improved performance from quarter two due to more stringent monitoring

measures, the overall diversion rate is still relatively low due to some challenges with the implementation of the

programme. The main challenge is the lack of human and financial capital to fully intensify the implementation

of the separation at source programme around the City of Johannesburg. Pikitup has opted to implement source

separation in the new financial year supported by the necessary budget and resources.

Graph 3.2.1.1: Quarterly Waste Diversion over 3 Financial Years


3.3 Landfill Management

Landfills are generally the most common disposal method for municipal solid waste. Disposing of waste in a landfill

involves burying the waste, and this remains a common practice by Pikitup. A large city like Johannesburg which

faces rising disposal costs requires other waste disposal methods to reduce the volume of waste for final disposal.

Landfill management costs are very high. From the management of the gases coming out of the landfills to

groundwater contamination management, and ensuring compliance with environmental regulatory policies

requires high capital investments. Pikitup has therefore identified and planned for waste management projects

to build, upgrade waste sorting and treatment facilities, construct and refurbish landfills, and convert closed and

existing landfills to transfer stations.

3.3.1 Landfill Disposal

On an annual basis and in each quarter Pikitup targets to reduce waste disposed at Lanfills. The table below reflects

waste tons received at each of the operating landfill sites from 2015/16 to date.

Waste Disposed

at Landfill Sites

Total for

2015/16

Total for

2016/17Total for

2017/18

Total for

2018/19

2019/20

Quarter 1 Quarter 2 Quarter 3 Quarter 4 YTD Total

Robinson Deep 667143 572 800 450353 255655 88304 127573 94768 310645

Marie Louise 373051 407 576 363216 296241 47966 41042 39362 128370

Goudkoppies 266034 341 285 341145 329207 87417 81870 68070 237357

Ennerdale 101168 104 102 83760 70388 14028 20313 15438 49779

Total 1 407 396 1 425 763 1 238 474 951 491 237715 270798 217638 726151

Figure 2: Waste disposed at the operational landfill sites per quarter from 2015/16 to date

Figure 3.3.1.2: Waste disposed at the operational landfill sites per quarter from 2015/16 to date

42

The following factors, amongst others, contribute to the decrease seen in the afore-going figure.

• Waste separation at source;

• The diversion of green waste away from landfills to garden sites;

• There is a decrease in the disposal of waste requiring destruction certificates at landfill sites.

3.3.2 Weighbridge Management System

Pikitup landfill sites and the Commercial Services at Pikitup rely on accurate weight data to charge for waste

disposal. A scale or weighbridge system is located at the entrances to the sites and it weighs waste vehicles on

arrival, records and verifies load data and reweighs the vehicle once the load has been deposited. Data is recorded

and stored, albeit manually and can be transferred to the Finance Department for billing purposes and in order to

meet legislative reporting requirements and improve efficiency.

Pikitup records and stores the weight data manually due to expired contract, and procurement delays, and requires

a reliable weighing system that is robust enough to stand up to fraud is vital to the profitability of the Commercial

Services Business. A service provider for weighbridge software support, hardware repairs and maintenance for a

period of eight (8) months has been sourced. It is expected that the weighbridge management system will be fully

operational by 31 May 2020. The long term solution is to develop in-house, software for this purpose. To this end

the ICT Department vacancies are being prioritised to recruit for such skill.

3.3.3 Lifespan Estimates of Landfill Sites and Methodology

Volumetric Topographical Survey services are sourced on an annual basis to provide a landfill airspace estimation to

assist Pikitup in the medium and long-term. The recent landfill surveys were undertaken in June 2019 and a service

provider has now been appointed or the 2020 survey.

In determining the remaining landfill airspace, the surveyor takes into consideration the landfill final recommended

heights, landfill slope profile of 1m vertical to 3m horizontal (1:3) and feasible landfill footprints for each operational

landfill. Also taken into consideration is the waste disposal rate at each of the operational landfill sites.

The current total remaining landfill airspace is further depicted by figure 3 hereunder, indicating 4.54 years overall

remaining landfill airspace.

The table below outlines the remaining landfill airspace projections for each of the operating sites as per the landfill

survey report, dated July 2019.

Table 3.3.3.1: Landfill Airspace Projections per site as at June 2019

Landfill Site Name Remaining Airspace (m3) Remaining Lifespan (Years) Estimate Closure Date

Robinson Deep 943 433 4 years and 2 months August 2023

Goudkoppies 3 073 348 10 years and 7 months January 2030

Marie Louise 149 857 4 Months October 2019

Ennerdale 618 830 6 years and 7 months June 2026


3.3.4 Landfill Optimisation

Table 3.3.4.1: Landfill Optimisation per site

Landfill Site Name Remaining Airspace (m3) Remaining Lifespan (Years) Estimate Closure Date

Robinson Deep 943 433 4 years and 2 months New Landfill Cells

Goudkoppies 3 073 348 10 years and 7 months Disposal during weekends

Marie Louise 149 857 4 Months Height extension

Ennerdale 618 830 6 years and 7 months New Landfill Cells

Pikitup has optimisation plans for each Landfill site for the short and long term and the plans have been

implemented at each site.

3.3.5 Landfill Plant and Equipment Availability

In this quarter, January to March 2020 the availability of plant was satisfactory with occasional breakdowns to the

Landfill Compactors and Bull dozers, predominantly at Goudkoppies and Ennerdale landfill sites, as well as normal

maintenance. The average availability recorded for the four operating landfills was at 92%. The figure below

illustrates the trend of landfill yellow plant availability averaged quarterly.

Graph 3.3.5.1: Landfill Plant and Equipment Availability

44

3.3.6 Landfill Audits

Gauteng Department of Agriculture and Rural Development (GDARD) conducted audits to monitor and enforce

compliance with the permits and waste management licenses (WML) at Goudkoppies, Ennerdale and Robinson

Deep landfill sites. These audits resulted in notices of intention to issue a compliance notice in terms of Section

31L of the National Environmental Management act, 1998 (act 107 of 1998) (NEMA) in respect of non-compliance

with conditions of permits and WML being issued to Goudkoppies, Ennerdale and Robinson Deep landfill sites.

Pikitup has responded to the notices with action plans against which it is providing regular feedback to GDARD.

3.3.7 Alternative Waste Disposal Management

The Environment and Infrastructure Services Department [EISD] is leading alternative waste disposal projects that

are due to benefit Pikitup. It is also responsible for the oversight of reducing the ecological footprint in the delivery

of waste management services and ensuring effective environmental policy, strategy, regulation and standards are

implemented across the supply of such services.

Waste to Energy- Mass burn Technology

This project is developed in collaboration with the Development Bank of Southern Africa. The key role players in

this project are EISD, Pikitup and City Power. Pikitup is key in the development and implementation of the project

as they provide waste as a feedstock to the energy generation process. City Power is key in the off take of the

energy to be generated from waste. The feasibility for this projects was concluded and a Council resolution was

obtained to continue with the PPP procurement. Currently we procuring the services of transactional advisors to

take the project trough PPP procurement and contact negotiation.

Bio-digester-Biogas gas for Fleet project

This project is developed in collaboration with the Development Bank of Southern Africa. The key role player in

this project are EISD, Pikitup, Joburg Market and Metro Bus Pikitup and Joburg Market are key in the development

and implementation of the project as they provide waste as a feedstock to the fuel generation process. Metro Bus

is key in the off take of the fuel to be generated from waste. Feasibly studies are concluded and the pilot plant

designs and specification for procurement of the engineering company to build operate and maintain the pilot

plan has commenced.

3.3.7.1 Landfill Sites Infrastructure Development

Landfill Capital Project Remarks

Ennerdale Landfill Site Purchase of land from

Corobrick

JPC has signed the purchase agreement of the Corobrick’s land which is in the process of

being transferred to Pikitup. The land will be used to extend the Ennerdale landfill site. JPC

is in a process of subdivision of the land in order to apportion the piece of land which will

be registered under JPC.

Marie Louise, Kya

Sands and Linbro Park

landfill sites

Construction of MRF

(Material Recovery

Facility) and Transfer

Stations

Consultants were appointed to undertake the designs for the construction of a MRF and

Transfer Stations at the Marie Louise, Kya Sands and Linbro Park landfill sites. The designs

for Marie Louise and Kya Sands landfill were completed.

The above improvements will enhance the landfill compliance in relation to the following: Recycling facilities

incorporating rubble crushing plants at the landfills will enhance waste reclamation activities off the tip face,

ensuring a safer tip face working environment and promoting airspace preservation.


3.4 COVID-19 Imperatives on Operations

A National Lockdown was declared in the latter part of the quarter to limit the spread of COVID 19. Pikitup was

declared an essential service.

As part of our response to keeping our Employees safe and also providing our services, the following was

implemented:

• A COVID 19 Steering Committee

• Participation in COJ COVID 19 Steering and Technical Committees

• Provision of safety equipment to employees

• Provision of sanitisers across all Pikitup sites and in Pikitup vehicles

• Development of communications plan

• Release of sickly and/or elderly employees and procurement of resource augmentation services

• Activation of augmentation service providers to clear backlog services.

3.5 Partnerships and Stakeholder Involvement

An integrated approach is adopted to communicate, engage stakeholders, educate the community, and implement

events and promotional initiatives that enhance the reputation of the organisation.

During this quarter, the Communication and Stakeholder Management Department executed the following

activities in support of the organisation’s business imperatives.

3.5.1 Customer Relationship Management

Pikitup has been inundated with complaints from the residents of the City expressing their dissatisfaction with

regards to the service received from the City of Johannesburg’s centralized call centre.

The dissatisfaction originates from their inability to timeously access the call centre as it is constantly engaged.

In the event that their calls get through, they are made to hold the line for long periods of time. Some of the

complaints point to the inability of the call centre agents to satisfactorily respond to customer complaints. As at

the end of December 2019, according to the data received from the centralised city’s call centre, Pikitup unresolved

queries are sitting at 22 565. Some of these queries date back to the beginning of 2019.

It is envisaged that the volume of queries relating to bins will decrease as Pikitup has bins in stock and will

accelerate the delivery thereof.

The resolution of customer complaints is an integral part of the business of Pikitup and consequently to effectively

and efficiently address them, the establishment of an in-house call centre is imperative.

A great deal of work has been undertaken to establish the in-house call centre however the national state of

disaster (Covid-19) has decelerated some of the activities. It is envisaged that the call centre will be operational by

01 July 2020.

46

3.5.2 Stakeholder Management

Pikitup’s stakeholders were engaged in order to:

• Enhance and strengthen existing relationships;

• Formulate partnerships aimed at assisting Pikitup to achieve its business imperative and mandate;

• Establish new relationships; and

• Solicit the support of stakeholders for Pikitup’s initiatives and programmes.

The table below illustrates Pikitup’s stakeholders that were engaged from January to March 2020 and the outcome

of engagements:

Name of Stakeholder Date of

engagement

Purpose of engagement Stakeholder material issues Outcome

EISD

(Environment and

Infrastructure Services

Department)

09/01/2020 To discuss logistics for the launch

of the # KleenaJoburg campaign

The office of the MMC

indicated they envisaged

having the launch in two areas

simultaneously

Pikitup’s plan was

accepted.

WESSA

(Wildlife &

Environment Society

of South Africa)

13/01/2020 To request WESSA to collaborate

with Pikitup and CoJ on the

launch of the #KleenaJoburg

campaign

The stakeholder requested

Pikitup to converge 100

learners that can be educated

on environmental science and

waste management practices

The stakeholder agreed to

participate in the launch

of the #KleenaJoburg

campaign.

Regional Director

(Region E)

14/01/2020 To identify a site in Alexandra

that will be used to launch the

#KleenaJoburg campaign

The Regional Director pointed

Pikitup to problematic illegal

dumping sites that require

immediate attention.

The launch of the

campaign was postponed

indefinitely.

Head of CRUM 16/01/2020 To discuss the launch of the


The Head of CRUM

recommended that a meeting

with all Regional Managers

be held so that they can

have an understanding of

the objectives and expected

outcomes of the campaign.

A meeting with all the

Regional Managers was

scheduled and it took place

in February.

Mayor’s Office 17/01/2020 To discuss the launch of the


The campaign should be

integrated. It has to involve all

the city’s entities. Therefore, a

concept document was being

developed from the Mayor’s

Office which will incorporate

all the city’s entities.

The launch of the

campaign was postponed

indefinitely.

City Parks 24/01/2020 To discuss the rehabilitation of

illegal dumping sites in region D.

City Parks indicated that the

rehabilitation process cannot

start without a signed MoU/

SLA.

It was agreed that the

process of getting the

MoU/SLA in place be fast

tracked to ensure that the

budgeted amount is spent

within the remainder of

the 2019/20 FY.



engagement


Sci-Bono,

City Parks,

JPC,

Office of the

Municipal Manager

04/02/2020 To discuss a proposal from

Sci-Bono to beautify the City of

Johannesburg.

The Stakeholder requested

assistance with obtaining

permission from JPC to

beautify the targeted areas.

Pikitup to commit to clearing

illegal dumping spots around

the targeted area.

Pikitup will be involved

in the project once the

issue with JPC has been

resolved.

Gautrain 06/02/2020 To discuss the rehabilitation of

an illegal dumping site next to

the Marlboro Gautrain station.

The stakeholder re-emphasised

the importance of having a

letter from JPC confirming that

permission has been granted

for the site to be rehabilitated.

It was agreed that Pikitup

will further engage JPC to

request for the letter to be

issued.

Department of Water

& Sanitation (DWS)

KlipWas Steward

Initiative

International Water

Management

Institute (IWMI)

14/02/2020 To discuss collaboration to clean

the Klipriver along the Klipriver

Nature Reserve.

DWS requested Pikitup

to participate in the river

campaign to collect and

dispose waste that was taken

out of the river.

On 13 March 2020 the

Klipriver was cleaned and

Pikitup assisted with the

collection and disposing of

waste.

Cllr Raphadu of Ward

105 in Alexandra

21/02/2020 To inform the Councillor about

the collaboration between

Gautrain and Pikitup of

rehabilitating the illegal dumping

site in Marlboro.

The Councillor indicated that

his support for the project is

based on the site being turned

into something that will

benefit his community, e.g.

recreational facility.

The Councillor committed

his support for the project.

An agreement was reached

that further engagements

will take place after JPC

has granted the permission

to Pikitup to convert the

site into a recreational

facility.

Clean Malvern

Campaign

Representatives

26/02/2020 To discuss the plan for cleaning

campaigns at Denver hostel and

nearby informal settlement.

The Stakeholder has requested

the upkeep of the two

areas and in mobilising the

businesses of the area to

rally behind the cleaning of

Malvern.

The education and

awareness campaign

should precede the clean-

up. Pikitup will utilise the

EPWP workers drawn from

the hostel and informal

settlement to clean the

identified areas.

City of Johannesburg

Knowledge

Management Unit

27/02/2020 To discuss Pikitup’s involvement

in sharing knowledge about its

environment.

Pikitup has a lot of good

stories that are untold.

Henceforth, Pikitup should

submit its stories so that they

can be told using the City’s

Knowledge Management Unit

and platforms.

It was agreed that

Pikitup will appoint a

champion that will engage

and participate in the

programme.

48


engagement


CoJ Call Centre 29/02/2020 To conduct a benchmark on the

City’s call centre. To visit Pikitup’s

part of the call centre and

establish the cause of backlogs

and unresolved customer

queries.

The stakeholder indicated their

reservations about Pikitup

establishing its inbound call

centre.

The management of the

call centre will however,

support Pikitup with its

endeavour of establishing a

call centre.

Regional Director of

region E

02 /03/2020 The meeting was to brief the

RD about the Global Recycle

Week event scheduled for the

23 March 2020. Pikitup had

partnered with the National

Department of Environmental

Affairs to host the event and

honour entrepreneurs who are

in the recycling business.

The Regional Director

requested that other

departments be involved in

the event, i.e. Environmental

Health, JMPD, Social

Development and EMS.

The event was postponed

as it fell within the

timeframe of the covid-19

national lockdown period.

EISD

RD: Region G

Environmental Health

City Power

Joburg Water

City Parks

11/02/2020 To identify sites to be cleaned

during the #KleenaJoburg

campaign of 14 March 2020.

The other entities also identified

areas to be serviced in support

of the campaign.

The residents of Phumla

Mqashi requested Pikitup to

supply them with bin liners

and skip bins in order to avoid

illegal dumping and to keep

their area clean.

Pikitup hosted a successful


on 14 March 2020 in

ward 120 Phumla Mqashi

Informal Settlement. The

event was supported

by Pikitup’s partners i.e.

Shoprite, Coca Cola and

Environserv.

Road Accident Fund 13/03/2020 To conduct a benchmark exercise

on the establishment on an in-

house call centre for Pikitup.

Insightful information was

shared with Pikitup on how

to establish a call centre.

Joburg Water 13/03/2020 To conduct a benchmark exercise

on the call centre

The information shared

by Joburg Water was

insightful and will be used

to establish Pikitup’s call

centre.

City Parks

Protea North

Community

18/03/2020 To show City Parks the site in

Protea North which is earmarked

for rehabilitation

The community of Protea

North (next to Pikitup’s garden

site) indicated that if work

to establish the park is not

resumed on 01 April 2020

they will stop the construction

of the garden site.

City Parks took the

measurements of the site.

They are working on the

design of the park. As soon

as the lockdown period is

over, City Parks will resume

with the development of

the park.

Environserv 18/03/2020 The stakeholder requested to

meet and introduce themselves

to Pikitup’s MD

The stakeholder indicated their

willingness to assist Pikitup in

various waste management

projects

It was suggested during

the meeting that

Environserv will have to

follow the stated SCM

processes if it is interested

in working with Pikitup.


Name of Event Activities Evidence in Pictures Impact /Commitment

Presentations on Environmental Education and Awareness on Mandatory Separation@Source were done to 150 learners at Lesedi La Kreste, Stretford Primary (60) Uzabantu Primary school ( 264 learners),

Observatory East Primary School(198 learners)Observatory Girls Primary school (685 learners),Rand Preparatory College (180)

Ambleside Christian school (74) Ikage (120) Primary, Skeen Primary (300), Zenzeleni (250), Dr Knak (340) Iphutheng (400) Apex Primary (1030) Shari Crest Primary(982) and Bazokhula (80)

Total:4773 learners benefitted

Learners from the schools were addressed in the assembly and classrooms.

Schools committed to helping reduce the amount of waste that goes to landfill sites by recycling.


Celebration of Water Week – Classroom presentations were conducted in six primary schools before the interruption of the Corona virus outbreak.

Presentations conducted in a classroom set-up and all 360 learners were taught about proper waste management which included recycling.

All six schools committed to introducing the Separation@Source programme to help reduce the amount of waste that goes to landfill sites.

3.5.3 Education and Awareness

Raising awareness and educational activities about responsible waste management included:

• Environmental Education and Awareness at schools and Early Childhood Development centres;

• Education on best waste management practices in communities during the #KleenaJoburg campaigns;

• Training of Cooperatives and Environmentalists; and

• Door to door campaigns during the Water Week.

50


Community and Employee Awareness training on proper waste management practices and Mandatory Separation@Source Sessions were held for Umbuso Cooperative, Volunteers in Lenasia, EPWP at Avalon, Members of the Orange Grove Community Forum, Members of Shomang Sebenzani Environmental Initiative as well as 60 Environmental Guides from the City of Johannesburg, MicGalaw, Siyaphumelela projects, Roots & Shoots and Itsoseng Women`s projects

All of the training sessions took the form of classroom presentations.

All the beneficiaries committed to assisting Pikitup minimise the amount of waste that ends up at landfill sites. In Alexandra, the door to door campaigns were planned but postponed due to restrictions as a result of the Corona virus outbreak.


Door to Door education & Awareness were carried out in Lenasia, Lawley, Yeoville, Alexandra, Bezvalley and Norwood depot

Presentations done in a classroom set-up and all the 360 learners were taught about proper waste management that included recycling

Every person we engaged with, committed to helping Pikitup in minimise the amount of waste that goes to landfill sites and to stop illegal dumping.



Environmental Education Awareness in communities during KleenaJoburg campaign to combat Illegal dumping and to promote the Mandatory Separation@Source programme.

Pikitup conducted environmental education and awareness to the residents of Yeoville, Bertrams, Bezvalley, Orange Grove, South Hills, Phumla Mqashi, Lenasia CBD and Unaville. The aim was to educate residents and shop owners about the negative impact of illegal dumping around these areas.

People spoken to individually

Every person we engaged with pledged to be responsible in managing their waste.

A TOTAL OF 4773 learners benefitted from Pikitup’s education and awareness drive.

3.5.4 Marketing and Events Management

ILLEGAL DUMPING MARKETING CAMPAIGN

During the period under review, the Marketing Unit successfully executed a radio and digital screens advertising

campaign to educate the public about the dangers and negative impact of illegal dumping. The campaign also

promoted Pikitup’s free bulk waste service and garden sites as well as the JMPD law-enforcement number that

residents can use to report illegal dumpers. The #KleenaJoburg campaign message was also featured. The month-

long radio campaign consisted of a 30 second recorded advert by the MMC, Cllr Mpho Moerane which aired

during prime time on Radio 702, Alex FM, Mix FM, Thetha FM, EEldosz FM and Rainbow FM. At the end, over one

million people were reached through the campaign.

The digital screens advertising campaign flighted for a period of two months (February-March 2020) on digital

screens with high traffic volumes that are strategically located across the City of Johannesburg, namely M1 North,

M1 South, Soweto, Balfour Park, Braamfontein, Epson Downs and Fourways.

52

The picture below illustrates some digital screens advertising on the M1 North

COUNCILLOR E-MAIL COMMUNICATION

Daily communication via email with Councillors across the seven regions of the city is ongoing. This platform is

mainly used to communicate the city of the refuse collection on a daily basis, as well as other key information that

is of essence to residents. The RCR status updates are also communicated via Pikitup’s social media platforms.

EVENTS MANAGEMENT

The Department coordinated and managed a number of #KleenaJoburg weekly campaigns held in various regions

during the months of January, February and March 2020 in an effort to keep the City of Johannesburg clean. The

Department’s role in these clean-up campaigns was to publicize them through Pikitup’s social media platforms and

provide branding for maximum visibility and exposure. The Department also participated in the smooth execution

of the Mayoral visit to Pikitup, as part of the Mayor’s roadshows to the entities with the objective of understanding

and appreciating the entity’s operations. The Mayoral visit for Pikitup took place on 10 March 2020.

The Department also participated in the 19th Annual General Meeting of the City of Johannesburg held at the

Roodepoort Theatre on 11 March 2020. About 15 board members of the Board and members of the Independent

and Risk Committee, were allocated to Pikitup to play an oversight role for the 2020-2021 financial year. The

Department provided branding and social media communication.

On 15 January 2020, the Gauteng Provincial Government invited the City of Johannesburg and Pikitup to the re-

opening of Noordgesig Primary School. Pikitup donated fifteen 240L bins to the school for waste management.

Branding and social media communication were also provided.


Below are pictures from some of the events:

#KleenaJoburg Campaign

AGM pictures Pikitup bins – Noordgesig Primary School

Pikitup new Board members from the AGM held on 11 March 2020

54

3.5.5 Performance of Pikitup’s online media channels

Website Statistics

For the period under review, Pikitup’s website recorded 18 083 visitors compared to 17 728 recorded in the last

quarter and 70129 page impressions compared to 68 754 recorded in the last quarter. The main activities that

occurred on the website over the period include uploading of tenders, requests for quotations and community

notices/adverts.

Website statistics from the website re-launch (November 2015) until March 2020


Social Media statistics

Facebook fans are currently sitting at 28 793, an increase of 40 fans from the last quarter. Our Twitter followers are

29 559, an increase of 1 797 followers from the last quarter. Most of Pikitup’s social media traffic originates from

twitter. Some of the activities/posts that were posted during this quarter include Pikitup advertorials for the Kleena

Joburg campaign, service delivery posts, information on the clearing of illegal dumping hot spots, and updates on

refuse collection.

When it comes to complaints received via social media platforms, CSM continuously works with the Operations

and Customer Services Department to resolve the complaints and to communicate back to the audience.

Pikitup social media statistics: July 2015 – March 2020

3.5.6 Internal and External Communication

The activities of CSM in relation to communication services were driven in the main through reactive media and

reactive approaches. The bulk of the media coverage during this reporting period related to operational services

that Pikitup renders to residents and illegal dumping and littering. The #KleenaJoburg voluntary clean-up campaign

as well as the impact of COVID-19 on Pikitup operations contributed to the earned media coverage that the waste

management entity was able to record in the quarter under review.

The earned media coverage – which means media coverage gained through proactive and reactive approaches

without buying media space – resulted in the following media coverage:

Medium Clips Count AVE (Average Value Equivalency)

Print 133 R3 674 943

Broadcast 65 R2 721 690

Online 160 R2 843 035

Total 358 R 9 239 668

56

The bulk of earned media coverage was driven by online publications followed by print and lastly broadcast media.

The majority of the print media coverage was published by community publications and that bodes well with

Pikitup’s objective of changing behaviour amongst community members to adopt responsible waste management

principles such as recycling.

The media coverage registered during the period under review indicates an increase from the last reporting period

where 225 media mentions were registered as opposed to the current reporting period of 358 media mentions.

The social media platforms were also used to communicate operational issues during the lockdown period to

constantly inform residents about refuse collection.

Internal Communication

Internal communication in the initial period of the quarter was concerned with fostering a culture of driving internal

stakeholders to understand the objectives of the organisation and propelling them to achieve organisational

imperatives.

For example, by encouraging internal stakeholders to ensure that service providers are paid within 30 days and to

nudge them to submit acquisition plans to the Supply Chain Management Unit.

However, in the latter part of the quarter, a barrage of messages as sanctioned by the World Health Organisation

and the National Department of Health on how to curb the spread of COVID-19 dominated the internal

communication platforms. Information posters were circulated via email and posters in IsiZulu, English, Afrikaans,

IsiXhosa, Sesotho, Xitsonga and Sepedi were delivered to all the depots including the landfill sites, in order to be

posted in strategic areas so that employees can read and familiarise themselves on how to protect themselves

against the COVID-19 virus.


ar 2019-20)57

3.6 Performance Against Service Standards

Service Standards KPI’s Baseline2019/2020 Target

Quarterly Target

Actual Performance

Achieved/Not Achieved

Reasons for non-achieving Mitigation Plan

Resolution of complaints:

(acknowledge and respond within 72 hours of complaint being logged)

(Resolution within 5 working days of logged call)

60% 90% 90%6%(estimated)

Not achievedInaccessibility of SAP data as a result of lock down. Lack of bin contract and supply.

Pikitup has engaged GITC for access. Due to Pikitup not having a bin contract, performance is expected to increase in Q4 as bins have been delivered and are distribution has commenced in terms of a catch-up plan.

Collecting of general business waste 100% 100% 100% 82% Not achieved Vehicle breakdowns and capacity deficiencies.We anticipate improvement on planning of human resources and finalisation of the fleet procurement process by COJ.

Collecting putrescible waste (wet waste) Within 24 Hours of logged call.

100% 100% 100% 0% Not achieved Vehicle breakdowns and capacity deficiencies.We anticipate improvement on planning of human resources and finalisation of the fleet procurement process by COJ.

Cleaning of illegal dumping spot within 10 days of call logged

100% 100% 100% 83% Not achievedThe contract with service providers has been under dispute and has resulted in non-achievement of the service level.

The contract for illegal dumping was finalised in the previous quarter and cleaning expected to improve going forward.

Removal of animal carcasses Within 48 hours of call logged.

100% 100% 100% 91% Not achieved

Complaints are received and resolved on varying days. Some complaints are received on a weekend when customer service employees are not at work. These are attended to the next working day which may be outside the 48-hour period.

Pikitup is looking at an improved complaints management process.

Delivery of an ordered Skip bin by customer within 7 days.

100% 100% 100% 0% Not achieved There are no skip bins in stock.

Pikitup is engaging in the tender process for procuring a service provider to supply and deliver bins. As an interim measure, depots have shared their unutilized skip bins with the bulk department and that has improved services provided to customers.

Delivery of new or replacement wheelie bins (240l) ordered by customer within 7 days.

100% 100% 100%6%(estimated)

Not achievedThere was no bin contract to distribute ordered bins.

A tender process was finalised and a new bin contract entered into with a panel of service providers. Orders for bins were delivered only in the latter part of Q3 and prioritisation of backlogs is a key focus.

Collecting of refuse bags on the curbside.

98% 98% 98% 96% Not achievedNon-achievement is due to the frequent fleet break downs

We anticipate improvement on planning of human resources and finalisation of the fleet procurement process by COJ.Next month will improve following filling of various positions at the depot level, as employees will be deployed in critical areas and afternoon shift.“

Collecting domestic waste. 98% 98% 98% 96% Not achieved Vehicle breakdowns and capacity deficiencies.We anticipate improvement on planning of human resources and finalisation of the fleet procurement process by COJ.

Households in informal settlements including backyard shacks (bag/bin/skip) /hostels (skips) receiving refuse removal services.

100% 100% 100% 91% Not achieved IInsufficient human resources.Pikitup is working on a model to optimise deployment of insourced J@W employees. There will be a process to increase individual productivity.

58

3.7 Performance against Institutional Service Delivery and Budget Implementation Plan (SDBIP)

The performance of the Entity is rated and assessed as to whether it was achieved or not achieved. In total

the Entity has 18 Key Performance Indicators for 2019-2020 financial year, 3 are annual targets and 15 are

measured quarterly. The performance for the quarter therefore is premised on the 15 quarterly targets and Pikitup’s

performance in Q2 against these targets.

3.7.1 Performance Results for Q3

Goal Quarter 3

Planned target 15

Achieved 6

% Performance 40%

Not achieved 9

The Entity has achieved 40% of the 15 targets that are measured quarterly, signifying that 60% of the quarterly

targets were not achieved.


ar 2019-20)59

KPI No.

Strategic goal KPI Intervention Baseline (2018/19 FY)

2019/20 Target

Q1 Q1 Actual Performance

Q2 target Q2 actual performance

Q3 target

Q3 actual performance


Reasons for non-achievement/over-achievement

Action Plan were target not achieved

Performance Rating

2019/20 Budget per Programme

1 Strategic Goal 1: Building an Efficient, Effective and Viable Waste Management Company.

Percentage (%) Capital Budget spent.

N/A 86% 75% 10% 19% 30% 44% 75% 64% Not Achieved The works commenced only in the second half of January, there was a delay in the approval of the mid-term budget adjustment and that works were ceased due to the Lock Down.

The unspent budget will be reallocated to COVID-19 procurement.

R 102 250 000.00

N/A

2 Percentage (%) SMME procurement spend.

N/A 92.1% 30% 30% 100% 30% 30% 30% 100% Achieved Consistent expenditure planning assisted in achieving this target.

N/A N/A N/A

3 Percentage (%) of valid departmental invoices paid within 30 days of invoice date.

Implementation of the approved accounts payment policy..

44.94% 95% 95% 81% 95% 60% 95% 90% Not Achieved There is an improvement in the performance against this target due to the implementation of the revised Payment Policy.

N/A N/A N/A

4 Reduction in disabling injury frequency rate (DFIR)

Promote health and safety programmes in the workplace.

3.6 2.5 2.5 1.9 2.5 1.5 2.5 1.2 Achieved Implementation of ISO standard SHE Programme.

N/A N/A N/A

5 Audit opinion obtained from Auditor General South Africa (AGSA)

Improve internal controls and governance.

Unqualified with findings

Clean audit opinion obtained from AGSA

Annual Target

Annual Target Annual target

Annual target Annual target

Annual target No AG findings closed in Q2 as AG audit only finalised in December 2019

N/A N/A Annual Target N/A N/A

6 Percentage (%) resolution of Internal Audit findings

Improve internal controls and governance.

83% Resolve 80% of 2018/19 IA findings

Annual Target



Annual target N/A N/A N/A Annual Target N/A N/A

7 Percentage (%) of queries resolved within 7 days in accordance to the service level standards.

N/A 80% 95% 95% 22% 95% 6.68% 95% 7% Not Achieved The SAP system was not available due to the lock down . SAP data could not be extracted as employees were working from home.

The GICT Department has been engaged to remedy this for Q4 reporting.

N/A N/A

59

KPI No.


2019/20 Target



Q3 target





Performance Rating


8 Strategic Goal 2: Integrated Waste Management, Waste Prevention And Waste Minimisation

Average percentage (%) landfill compliance to GDARD regulations and permit conditions as issued by DEA and DWAF, related to:Robinson DeepEnnerdale Goudkoppies Marie Louise

Continuous upgrading of landfill infrastructure and permit amendments to ensure compliance to the GDARD regulations and permit conditions as issued by DEA and DWAF.

94% 95% Annual Target



Annual target N/A N/A N/A Annual Target N/A N/A

9 Tonnes of green waste diverted

Secure leasing of Panorama composting facility to a private operator PPP.

50 958 40 000 10 000 17525 10 000 17 096 10 000 22 640 Achieved Increased off-taking activity assisted in the achievement of this target.

N/A N/A N/A

10 Tonnes of builder’s rubble diverted

Revisit the builder’s rubble diversion strategy and secure alternative uses of processed building rubble.

8 224 20 000 10 000 5760 10 000 5184 5 000 2 288 Not Achieved Not achieved due to excessive rain. Equipment is inoperable when it rains.

Necessary budgetary arrangements for procurement of equipment.

N/A N/A

11 Tons of dry waste diverted through Pikitup interventions (paper, plastic, glass, cans)

Roll out and expand the separation at source activity city wide. Organize reclaimers and recyclers to enable them to partner with Private Companies.

25 991 38 000 6 000 6 668 10 000 7 790 10 000 8 651 Not Achieved Achieved Insufficient budgetary allocation for separation at source programme.

Revise separation at source programme strategy and plan and budget requirement.

N/A N/A

12 Tons of waste disposed at the landfill sites.

Continue with waste prevention and waste minimization initiatives as well as Partnerships – landfill gas to energy, bio digesters, builders’ rubble crushing, MRF’s compost plant.

961 831 1389 121 288 374 (Not to exceed Q1 2018/19)

237 715 342 644 270 798 288 374 217638,31 Achieved N/A N/A N/A N/A

13 Number of drop off centres upgraded to Integrated Waste Management Facilities.

Refurbishment of garden sites into IWMF in accordance with GDARD requirements.

4 7 1 0 2 3 2 0 Not Achieved There was a delay in the approval of the midterm budget adjustment by Council and withdrawal of construction staff due to COVID-19.

Unused budget is to be rolled over.

R37 450 000.00 N/A

60

KPI No.


2019/20 Target



Q3 target





Performance Rating


14 Strategic goal 3: Effective and efficient delivery of waste management services.

Number of formal households receiving weekly waste removal services.

Implement shareholder and board approved fleet full maintenance lease (FML). And roll out of 240l bins to formalized areas.

1 182 997 1 184 961 1 184 961 0 1 184 961 1 184 961 1 184 961 1 454 124 Achieved The overachievement is as a result of the additional households that exist, that did not at the approval of the initial target.

N/A N/A N/A

15 Percentage (%) of all City recognized informal settlements provided with integrated waste management services.

Improve refuse containment and collection in informal settlements by providing (85l) waste bags and strategically placing 6m3 skips.

164 informal settlements (69.34%)

100% 100% 18% 100% 100% 100% 96% Not Achieved Non-achievement due to vehicle break downs and in the latter part of Q3 due to employees shortages.

A resource augmentation plan has been developed and is being implemented.

N/A N/A

16 Improved City cleanliness levels in targeted areas City-wide.

Increase allocation of resources towards the cleanliness of the inner-city and roll out of fit for purpose litter bins.

Level 1 cleanliness

2 2 2 2 2 2 2 Achieved N/A N/A N/A N/A

17 Number of illegal dumping spots eradicated.

Reduction and eradication of illegal dumping through community outreach, education and awareness programme .

N/A 6 0 0 0 0 6 0 Not Achieved MOU signing was delayed, and lock down stopped implementation.

Projects are to be deferred to 20/21.

N/A N/A

18 Strategic goal 4: Realization of Value Throughout the Waste Value Chain.

Number of work opportunities created through Expanded Public Works Programmes (EPWP).

N/A 5002 1900 200 0 200 1761 1900 106 Not Achieved Due to work stoppages by EPWP workers, additional intake was suspended to revise intake model.

A co-operative model has been implemented where EPWP intake is done by co-operative directly.

N/A N/A

61

62

CHAPTER FOUR

HUMAN RESOURCES AND

ORGANISATIONAL MANAGEMENT


4. CHAPTER FOUR: HUMAN RESOURCES AND ORGANISATIONAL MANAGEMENT

This Chapter contains the quarterly human resource management related information, citing employee

remuneration and wellness, critical vacancies, status of employment equity, disciplinary matters, leave issues and

skill development and training matters.

4.1 Employee Remuneration (Total Costs including Executives)

The total employee remuneration against the budgeted quarterly remuneration, including the executives (Total

Employee Cost) for the company is presented below.

Budget Actual Variance Variance %

Employee Costs 331 618k 304 195k 27 423k 8,3%

% spent = 91.7% (quarter 3 for 2019/20 financial year).

4.2 Key Vacancies

Pikitup by wasy of its strategy development, budget allocation and performance needs, prioritised critical positions

for which recruitment had commenced. The Shareholder Recruitment Moratorium was issued to suspend all

recrutiement. This has seen significant performance and accountability issues, and a significant burden on those

performing oversight or acting positions in addition to their substantive roles.

Pikitup has motivated accordingly with regard to the posts in the table below which were part of a rigorous

prioritization process within Pikitup. Many of these posts are at an advanced stage of recruitment and Pikitup will

incur fruitless and wasteful expenditure If the COVID-19 lockdown affects the finalisation of the ‘advanced stage

of recruitment’, surely it should be mentioned here. If not, surely something should be said as to when those stages

will be finalised.

Funded Critical Vacancies

FUNDED VACANT SENIOR POSITIONS(D4-F1) IN PROGRESS

NO LEVEL POSITION TITLE AGE ANALYSIS CURRENT STATUS ACTING

APPOINTMENT/SHORT

TERM CONTRACT

1 F Chief Audit

Executive

The position is

currently vacant

Post re-advertised on 3

March 2020. Position

closed 16 March 2020

Acting Appointee

Mr Tsoanetse Noko

17/02/2020 –

17/05/2020

2 E GM: Information

Communication

Technology

Vacant since 1

December 2018.

Funded

Post re-advertised

nationally on 3 March

2020. Position closed

16 March 2020.

Oversight by Managing

Director

64


3 E GM:

Communication

& Stakeholder

Vacant since

October 2016.

Funded

Post re-advertised



16 March 2020

Acting Appointee:

Pinky Farland

06/01/2020 –

31/03/2020

4 E GM: Finance Vacant since 1 May

2019. Funded

Post re-advertised



16 March 2020

Oversight by CFO

5 E GM: Commercial

Services

Vacant since 1

September 2014.

Funded

Advertised nationally

on 6 October 2019.

Position closed on

21 October 2019.

Screening complete.

Shortlisting in progress

Oversight by CFO.

6 E GM: Safety,

Health &

Environment

Vacant since 1 June

2019. Funded

Post re-advertised



16 March 2020

Oversight by EM: Legal

7 E GM: Operations

x2

Vacant since 1 June

2019. Funded

Advertised nationally

on 6 October 2019.

Position closed on 21

October 2019 and were

kept on hold.

Oversight by Chief

Operations Officer

8 E GM: Landfills Vacant since 1

August 2019.

Funded

Post re-advertised



16 March 2020

Acting Appointee:

Moleseng Tlaila

1 /08/2019 until

31/10/2019

Extended 30 April 2020

9 E GM Fleet Vacant since 2017 Post advertised on 17

November 2019. Advert

closed on 2 December

2019 and the position

was since kept on hold.

Oversight by Acting

Chief Operations

Officer

10 D Senior

Manager: Waste

Minimization

Vacant since 1 May

2019. Funded.

Post re-advertised



16 March 2020

Oversight by Chief

Operations Officer

11 D Senior Manager

Security

New Post. Vacant

since May 2019.

Funded

Post advertised on 17

November 2019. Closed

2 December 2019. Post

on hold pending review

of Operations structure.

Oversight by Chief

Operations Officer



12 D Senior Manager

Facilities

New Post. Vacant

since May 2019.

Funded

Post re-advertised



16 March 2020. Closing

date extended to 20

March 2020

Oversight by Chief

Operations Officer

13 D Senior

Manager: Talent

Acquisition

Vacant since 1 May

2019. Funded

Post re-advertised




date extended to 20

March 2020

Oversight by GM: HR

Services

14 D Senior Manager:

Performance

Management

Vacant since 1 May

2019. Funded

Post re-advertised




date extended to 20

March 2020

Oversight by EM:HR

15 D Medical

Practitioner

Current incumbent’s

contract was

extended to 30 April

2020

Post re-advertised




date extended to 20

March 2020

Dr Ismail Dawood

Extended to 30 April

2020

16 D Business

Planning &

Performance

Monitoring

New Post. Vacant

since 1 May 2019

Post re-advertised




date extended to 20

March 2020

Oversight by EM: Legal

Funded Critical Vacancies

FUNDED VACANT POSITIONS (D3 – C3) IN PROGRESS

NO. LEVEL POSITION TITLE AGE ANALYSIS CURRENT STATUS ACTING

APPOINTMENT/

SHORT TERM

CONTRACT

1 D2 ER Specialist X3 Vacant since July

2018

Post re-advertised



16 March 2020.

Closing date extended

to 20 March 2020

Oversight by Manager:

SHE

66

FUNDED VACANT POSITIONS (D3 – C3) IN PROGRESS

2 D2 Manager

Facilities

Incumbent vacated

post end of

November 2019

Post re-advertised



16 March 2020.


to 20 March 2020

Oversight by COO

3 D1 Manager: Sales Vacant since 1 May

2019

Post re-advertised



16 March 2020.


to 20 March 2020

Acting Appointee:

Dumisile Mgaga

26/01/2020 –

20/04/2020

4 D1 Operations

Manager X12

Vacant since July

2018

Post re-advertised



16 March 2020.


to 20 March 2020

Acting appointment as

per the affected depot

5 C3 SHE Officer X2 Vacant since May

2019

Post re-advertised



16 March 2020.


to 20 March 2020

Oversight by Manager:

SHE

4.3 Employment Equity

The annual Employment Equity Report was submitted to the Department of Labour. Pikitup Employment Equity

Policy was approved by the Board on 15 April 2019. Consultation in relation to EE was done by Centre of Expertise

and Employee Relations units with both unions IMATU and SAMWU. Implementation plan on EE was discussed

with timeframes including re-election of committee members.

4.3.1 Demographic Analysis

Figure 5: Top Management by Race and Gender


Figure 6: Senior Management by Race and Gender

Figure 7: Professional Qualified by Race and Gender

Figure 8: Skilled Technical by Race and Gender

68

Figure 9: Semi Skilled Race and Gender

Figure 10: Semi Skilled Race and Gender

People with Disabilities (Pwd’s)

The target for People with Disabilities nationally, is 2% of total employees and Pikitup is currently at 0.07%.

4.4 Skills Development and Training

Pikitup is committed to continuously developing its Employees in order to equip them with the tools to

achieve strategic goals. A skills audit is being conducted and the results will also be incorporated to the WSP for

submission to LGSETA for 2020-2021.

4.4.1 Subsidized Education

A total number of 33 employees including newly appointed Jozi @work Employees are enrolled at various

recognized educational institutions on a sponsored basis to pursue higher education programmes.

Pikitup employees are subsidized to further their Higher Education with Universities and Colleges on relevant

courses.


Details of employees funded for further studies in 2019-2020 Financial year

LEVEL NO OF EMPLOYEES QUALIFICATION FINANCIAL IMPLICATION

A Band 12 Higher Certificate and Diploma R 247,122.45

B Band 05 Higher Certificate R 115,035.01

C Band 12 Higher Certificate, Diploma and

Degree

R 331,689.00

D Band 02 Diploma and Degree R 66,670.00

E Band 01 Certificate R 33,950.00

F Band 01 Masters R 31,320.00

TOTAL 33 R 825,78646

Details of employees who attended Skills Programme (less than 3 months)LEVEL PROGRAM NO OF EMPLOYEES COST

Various levels A, B and C SAP training –Over view, Service

entry, creating order, Transaction

Processing and Reports, Business

Warehouse and HCM.

08 Training is offered by COJ at no

cost to MOE’s.

Various levels A, B and C Environmental Practice

Learnership level 4

70 SETA Funded

Various levels A, B, and C Environmental Practice Learner

ship level 3

103 SETA Funded

TOTAL 181

4.4.2 Grade 12

A total number of 150 employees are attending grade 12 programmes with Seoposengoe Training Consultancy. LEVEL NO OF EMPLOYEES PERCENTAGE % QUALIFICATION FINANCIAL IMPLICATIONS

A Band 146 97.33% Grade 12 R 171,000.00 has been paid

to service provider during

the quarter under review.

B Band 3 2% Grade 12

C Band 1 0.66 Grade 12

TOTAL 150 100% R 171, 000.00

4.4.3 MFMA Training

Details of employees who attended Municipal Finance Management Act (MFMA) Training in current Quarter CATEGORIES NUMBERS COST

Finance and SCM 1 R 58,000.00

Senior Managers 2 R 58,000.00

Other officials 1x Regional Managers,1

Legal Manager ,1x Waste Minimization GM.

3 R 116,000.00

TOTAL 8 R 232 000,00

During this quarter under review, 4 employees registered for the Municipal Financial Management Act (MFMA)

Training with the total cost of R232, 000.00. The training cost is R58 000, 00 per employee and Pikitup is invoiced

Monthly for a period of 9 months.

70

4.5 Performance Management

Final performance reviews were conducted during the final quarter for the 2018/19 performance cycle during the

period July/August 2019. Out of the 93 employees participating in performance management. 84 have completed

and signed their 2018/2019 performance agreements as well as submitted their final score sheets and POE files for

moderation. Nine employees did not submit performance documentation due to suspension, secondment or their

services being terminated prior to completing a performance agreement or review.

An external service provider has been appointed to assist with moderation of 2018/19 performance scores so

as to ensure objectivity and integrity of the process. Following the moderation process, the Pikitup Moderation

Committee, scheduled to meet on 23 March 2020, will finalize their recommendations to the Social, Ethics and

Human Resources Committee (SEHRC) for the payment of 2018/19 performance bonuses.

Business Units were expected to complete performance agreements for the 2019/20 financial year by 30 August.

A workshop was held on 19 September 2019 to assist managers and subordinates to complete the template.

Schedule of Scorecards 2019/2020DEPARTMENT EXECUTIVE HEAD TOTAL NUMBER

OF Employees

PARTICIPATING

NO SUBMITTED NO OF AGREEMENTS

OUTSTANDING

MDs Office Bukelwa Njingolo 11 6 1

Internal Audit Tsoanetsi Noko 2 0 0

Legal & Compliance Charlenne Louw 6 5 1

Finance Litshani Matsila 25 25 0

Operations Christopher Dyani 35 0 35

Human Resources Reena Budree 13 12 1

Total 92 48 44

Mid-year performance reviews were conducted during quarter three for the 2019/20 performance cycle for the

period between January and December 2019. The two Internal Audit employees members could not participate as

they were only appointed in December 2019 when the Chief Audit Executive resigned from his position.

Disciplinary Matters and Outcomes No Infringement/

Allegation

Type of Case Forum

Date Initiated Status/Outcome

1. LTO Assistant

Marlboro Depot

Grievance Internal 18/02/2020 The matter was finalized and presiding officer has

recommended that the employee be transferred to

another depot.

2. RM Midrand

(Favoritism and

divisive of employees)

Grievance Internal 10/2019 The matter was finalized on 13 March 2020 and

awaiting for the outcome on the 18 March 2020

3. Non-renewal of fixed

term contracts: N

Mametja & 9 others

Dispute Bargaining

Council

09/2019 Arbitration partly heard and awaiting for the new date

to set down.

4. Organizational rights

DEMAWUSA

Dispute CCMA 09/2019 Verification of members was conducted and awaiting

for the new date of arbitration.


No Infringement/

Allegation

Type of Case Forum

Date Initiated Status/Outcome

5. DEMAWUSA obo

980 member and

Waste group

Dispute Bargaining

Council

10/2019 Applicants applied for the condonation and arbitration

was heard on 31 October 2019 where the application

was opposed. The matter will further be heard on 31

March 2020.

6. Former Jozi@Work

Employee

Dispute Bargaining

Council

03/02/2020 Condonation hearing set on 07 February 2020 and it

was declined.

7. EPWP work stoppage Labour unrest Internal 14/02/2020 72 employee’s contracts were terminated with

immediate effect for misconduct.

8.

Former GM Bulk Dispute Bargaining 27/02/2020 Reconstruction of record and there were no prospects.

9. Former Jozi@Work &

EPWP

Dispute Labour Court 05/03/2020 The matter is on the Labour Court’s roll and awaiting

for the date of trial.

10. Supervisor Southdale Dispute Bargaining 02/2020 Arbitration for unfair suspension date has been set for

30 March 2020.

11. RM Southdale depot Dispute CCMA 01/2020 Conciliation was held, Pikitup argued for jurisdiction

and wait for the ruling.

4.6 Employees on Precautionary Suspension

Name of Employees

Member

Allegations Date of commencement Days in excess of 90 days Comment/Remarks

P Mokele Dishonesty 8 July 2019 46 Still suspended

4.7 Employee Wellness

4.7.1 Incapacity Management Programme

The total number of incapacity cases seen in Pikitup this quarter (Q3) was 56 (1.05%) active incapacity cases and

30(0.56%) permanently placed in the yard. All depots hold their monthly incapacity meetings to discuss their

incapacity cases. Incapacity cases are categorized as active Incapacity cases (those accommodated temporarily

on light duty) and permanent Incapacity cases (those who are permanently placed on light duty either by their

treating Doctors or Pikitup Occupational Medical Practitioner). Home visits and hospital visits are conducted for all

incapacity cases. Permanent cases are monitored on a regular basis and often discussed with the OMP for further

management. Active Incapacity cases on alternative placement Q2 2019

4.7.2 Periodic Medical Surveillance for General Workers (Former Jozi@work)

Total number of medicals conducted was 1225 (One thousand two hundred and twenty-five), including 86 driver

medicals. Drivers medicals are currently under-going multi drug testing in-house in compliance with the Road

Traffic Act and Occupational Health and Safety Act, thus their results have not been included in this Q2 report.

72

Age Demographics per Depot

Majority of employees are aged between (20 and 29) years at 34%, and (30 – 39) years at 34% respectively. Only

23% of employees are between 40-49 years. Only 1% of the total number of employees is above the age of 60.

4.7.3 Pre - Employment Medicals for In-Sourced Security Guards

Pikitup is required to comply with applicable legal and other requirements related to the Occupational health and

Safety Act, no 85 of 1993. One of the compliance requirements is that the company has to implement a Medical

surveillance program to determine the health and disease profile of its employees.

Pikitup absorbed 147 Security personnel that were previously contracted to Pikitup through an external contractor.

Pikitup absorbed the Security Officers from September 2019. The security insourcing project was implemented

with effect from 1 October 2019 Pre-employment Medical surveillance was conducted on 147 security personnel.

The project commenced from 19th September 2019 and completed by 30th October 2019.

4.7.4 Substance Abuse Programme

Counselling and Rehabilitation

As part of the substance abuse intervention program, individual counselling is conducted by internal EAP

Professionals. Assessment determines whether the intervention plan will be in house or external, either outpatient

or in-house Rehabilitation. During Q3, a total of 29 substance abuse related cases were dealt with by EAPs.

According to the table below, incidents of alcohol abuse haves increased by 2% when compared to Q2 and this

could be attributed to the fact that most employees are back from their leave and have been indulging in alcohol

during the festive season. Amphetamine abuse has reduced to 0.25% when compared to Q1 but remained the

same in Q2 and Q3. Job stability and security of employment is possibly a contributing factor. The abuse of nyaope

has gone up by 2% as compared to Q2 but remained the same as Q1.

Substance Abuse Support Group

The purpose of the Substance Abuse Support Group launch which took place on 05 March 2020 was to officially

launch the programme for the year 2020. The group was established to provide after care services to employees

who have been treated for substance abuse in various rehabilitation facilities. An external service provider from

SANCA was invited to empower employees with information to manage substance abuse problems. Inhouse

EAP and OHNP also gave presentations on how to manage the problem. Support group members were granted

the opportunity to share their challenges, ask questions and give input on the programme where necessary.

Attendance in Q3 was almost the same as in Q2.

4.7.5 Mental Health Programme

Mental Health Awareness Sessions

The purpose of the mental health programme is to empower employees with coping mechanisms to deal with

mental health issues. Activities carried out during this quarter included developing protocol for managing workplace

fatalities. Depot Managers were trained on the protocol and a total of four training sessions were implemented in

four different depots as stipulated above. Fifty-six (56) managers were successfully trained on Fatality/ Death of

an employee on duty. The purpose was to equip all depot managers with the necessary knowledge and skills on

EAP’s role once any fatality/ death of an employee has occurred and also to ensure that they are aware of the role


of the Wellness department in the event of a workplace fatality. A Stakeholder management meeting was held

to discuss the role of different stakeholders in the event of a fatality/death. Each stakeholder was requested to

prepare a department protocol to this effect. The plan is to have a uniform organisational protocol for guidance

in the event of a fatality.

Trauma Debriefing Group Sessions

During Q3, a total of 22 employees attended Trauma debriefing group sessions following traumatic incidents that

occurred within Pikitup. Trauma debriefing sessions were implemented for the affected employees by the EAP

practitioners. Trauma debriefings were conducted for loaders and other employees exposed to traumatic events

where a loader was knocked down by a Pikitup truck on site which resulted in the employee’s demise. The second

incident occurred when a female employee committed suicide at home and the co-workers required trauma

counselling. A group trauma intervention session was conducted by an EAP Practitioner after a traumatic incident

occurred on site whereby two employees came across a foetus on top of rubble to be collected.

4.8 Employee Benefits

4.8.1 Medical Aid

The Executive Committee of South African Local Government Bargaining Council has approved and accredited the

following Medical Schemes.

• Bonitas

• Hosmed

• Key Health

• LA Health

• Samwumed

The employer subsidy for medical aid is up to the maximum of R4492.35pm. Currently 4840 employees are

members of a medical aid and 498 have not joined a medical aid but some of these may be covered on their

spouse’s medical aid.

4.8.2 Pension Fund

The City of Johannesburg (Pikitup) have approved the following pension funds:

• EJoburg Retirement fund

• City of Johannesburg Pension fund

• Municipal employee Pension fund

• Municipal Gratuity fund

Pension fund membership is compulsory for all permanent and fixed term contract (FTC) employees.

4.8.3 Locomotion Allowance

All employees who are required to use their vehicle to perform company duties, receive a permanent locomotion

allowance.

74

LEVEL NO OF POSTS

A 0

B 2

C 182

D CTC

E CTC

F FTC

Total number 184

4.8.4 Housing Subsidy

Employees who are not on total cost to company and who are permanently employed by Pikitup, qualify to receive

a housing subsidy amounting to R 907, 77. Below is a list of beneficiaries per grade:

LEVEL NO OF POSTS

A 41

B 39

C 76

D CTC

E CTC

F FTC

Total number 156

4.9 Occupational Health, Safety and Environment Management

Pikitup management is proud of, and committed to building upon, the major successes of our Health and Safety

Programme which is underpinned by a Health and Safety Strategy that has the following key focus areas:

ENSURE WORKERS HAVE THE CAPABILITY TO WORK SAFELY AND EFFICIENTLY

• Ensure all workers are given the resources they need

• Ensure consistently high levels of training and competency

• Develop our network of confident and engaged safety leaders

COLLABORATE WITH WORKERS, SUPPLIERS AND STAKEHOLDERS

• Talk to workers and use their ideas for more efficient safety

• Verify injury insurance and monitor safety standards of contractors

• Leverage existing and build new partnerships

UNDERSTAND AND EFFECTIVELY CONTROL CRITICAL RISKS

• Fully understand and clearly communicate our critical risks

• Identify and implement controls for health risks

• Target effective safety risk controls

BUILD CONFIDENCE THAT WE PROACTIVELY MANAGE HEALTH AND SAFETY

• Undertake safety tours, audits and observations

• Provide assurance to stakeholders

• Maintain accredited systems and continue to improve them


Key performance objectives of this strategy

• No more than 2.5 Disabling Frequency Injury Ratio per quarter.

• Zero notifiable injuries / illnesses.

• 100% of audit actions completed.

• 20% increase in recorded safety conversations.

• Annual strategic activities complete.

• Each Regional Manager makes a field safety tour.

• 85% attendance of induction training refresher each year.

• 90% of contractors confirm safe work behaviours.

• 100% of Pikitup contractors pass an audit on their health and safety practice.

• International standard accredited system maintained by quarterly reviews.

• Two or more deep-dive discussions about governance of critical risks and control assurance.

• Independent accreditation of Health and Safety management systems achieved.

Pikitup’s vision therefore is that our work is done safely and efficiently. Our aim is for every worker to leave for

home safe and healthy every day. Our immediate priority is to reduce the potential for serious injury or death.

To this end, Pikitup is happy to report that in quarter 3 we have experienced similar stats for Disabling Injury

Frequency Rate compared to quarter 2.

4.10 Disabling Injuries per Facility and Types of Incident

The number of injuries reported for the third quarter is 20, same as the number reported in quarter 2 but with a

higher employee complement in Q3 due to EPWP temporary recruitment. The incidents are classified per facility

and the types of incidents are seen in tables below.

Reported incidents are analysed per Depot. It is evident from the next table that the highest incidents were in

Randburg followed by Zondi.

Environmental Plan (EMP)

Pikitup has developed an EMP that contains the necessary mitigation and recommended actions, timeframe and

person/s responsible for the actions. The EMP is a legally binding document that needs to be strictly adhered

to. Workers and contractors are made aware of the EMP, their responsibilities and sensitive / no go areas. Any

transgressions are treated as serious, with remedial action taken.

76

Incidences per DepotA

valo

n

Cen

tral

cam

p

Wat

erva

l

Mar

lbor

o

Mid

rand

Nor

woo

d

Rand

burg

Rood

epoo

rt

Selb

y

Sout

hdal

e

Zond

i

Ora

nge

Farm

Gar

den

Site

Pano

ram

a

Hea

d of

fice

Bulk

&D

ailie

s

Mar

ie L

ouis

e

Gou

d ko

ppie

s

Enne

rdal

e

Robi

nson

Monthly Totals

- - - 2 1 1 2 - 1 - 2 - - - -- - - - - 9

Jan ‘20

1 1 1 - 1 - 3 - - - 2 1 - - -- - - - - 10

Feb ‘20

- - 1 - - - - - - - - - - - -- - - - - 1

Mar ‘20

1 1 2 2 2 1 5 - 1 - 4 1 - - - - - - - - 20 Total

Type of incidents

Slip

and

Fal

l

Mac

hine

ry

Vehi

cles

Falls

fro

m m

ovin

g tr

uck

Load

ing

Load

ing:

Bum

ped

by

car

Load

ing:

Cru

shed

by

bin

lifte

rs

Stre

et s

wee

ping

: Bu

mpe

d by

car

Che

mic

al

Ladd

ers

Bee

stin

g

Dog

bite

Fore

ign

obje

ct in

the

ey

e

Ass

ault

Hit

by o

bjec

t

Cut

s

Twis

ted

the

leg

or a

rm

Oth

er

Monthly Totals

- - 2 1 - 1 1 0 - - - 1 - 1 2 - - - 9 Jan ‘20

1 - - 3 - 1 - - - - 2 - 1 - - 1 - 1 10 Feb ‘20

0 - - - - 1 - - - - - - - - - - - - 1 Mar ‘20

1 - 2 4 - 3 1 0 - - 2 1 1 1 2 1 - 1 20 Total

After an incident has occurred, an investigation is conducted and recommendations are made to management

to prevent the incident from reoccurring. On an ongoing basis, the SHE Department monitors and ensures the

implementation of the recommendations by relevant departments.

4.11 Environmental Controls

Environmental controls are embedded in our management system and are vigorously controlled and monitored in

order to reduce the risk and/or to make use of the opportunities in order to provide positive outcome. We strive to

reduce the impact that the business has on the environment. Our efforts to manage the business sustainably serves

the interest of Pikitup and the communities in achieving our objectives as follows:

• Ensure that we identify, evaluate and comply with local, regional and national environmental laws and

regulations applicable to our operations within the areas where we conduct business;

• Continually evaluate and manage our environmental risks and objectives;

• Actively seek to minimise pollution, emissions and effluents emanating from our operations;

• Work towards minimising waste by reducing, reusing and recycling programmes in our operations and that of

our clients in line with the hierarchy of waste management;

• Continually improve on our environmental performance standards.


CHAPTER FIVE

FINANCIAL PERFORMANCE AND

EXPOSURE

78

5. Statement of Financial Position and high-level notes

June 2019Actual Note Actual Budget Variance

ASSETS

Current Assets3 737 023 Inventories 1 2 890 761 3 115 145 -224 384

26 352 465 Receivables from non-exchange transactions 2 80 497 152 65 844 212 14 652 940 722 006 967 Receivables from exchange transactions 3 835 707 057 832 826 891 2 880 166 308 631 654 Other receivables - Sweeping 4 235 587 669 300 000 000 -64 412 331

21 984 Cash and cash equivalents 5 61 541 62 000 -459 1 060 750 093 1 154 744 180 1 201 848 248 -47 104 068

Non-Current Assets594 880 762 Property, plant and equipment 6 600 300 601 594 291 928 6 008 673

242 548 Intangible assets 6 196 525 196 525 - 137 838 708 Employee Benefit 137 838 708 137 838 708 -

1 185 644 969 Inter- Company receivables 7 1 227 397 394 1 055 331 295 172 066 099 1 918 606 987 1 965 733 228 1 787 658 456 178 074 772

2 979 357 080 Total Assets 3 120 477 408 2 989 506 703 130 970 705

LIABILITIES

Current Liabilities620 439 849 Intercompany - Salaries 609 623 511 613 982 549 -4 359 038

31 195 663 Finance lease obligation 8 4 172 389 3 848 841 323 548 740 432 334 Payables from exchange transactions 9 695 881 548 708 688 954 -12 807 406

6 885 890 Provisions 10 6 885 890 6 885 890 - 1 398 953 736 1 316 563 338 1 333 406 234 -16 842 896

Non Current Liabilities599 246 166 Loans from shareholders 11 640 478 086 644 418 809 -3 940 723

71 467 932 Employee benefit obligation 12 71 467 932 71 467 932 - 741 786 632 Provisions- Landfill Rehabilitation 10 772 311 114 772 311 114 -

1 412 500 730 1 484 257 132 1 488 197 855 -3 940 723 2 811 454 466 Total Liabilities 2 800 820 470 2 821 604 089 -20 783 619

167 902 614 Net Asset (liabilities) 319 656 938 167 902 614 151 754 324

NET ASSETS/ LIABILITIES1 000 Share Capital 1 000 1 000 -

43 001 808 Owners Contribution 43 001 808 43 001 808 - 124 899 806 Accumulated surplus / (deficit) 276 654 130 124 899 806 151 754 324 167 902 614 319 656 938 167 902 614 151 754 324

Statement of Financial Position as at 31 March 2020


1 InventoriesInventories represent stock including bin liners, consumables , protective clothing and 240L bins held as at end of the period.

2 Receivables from non-exchange transactionsReceivable from non exchange transactions consists of city cleaning levy.

3 Receivables from exchange transactionsReceivable from non exchange transactions consists of debtors net of provision for doubtful debts.

4 Other receivables - Sweeping The sweeping account balance of R 235 587 669 . The sweeping account represent cash that is swept on a daily basis as per the sweeping arrangement with the City of Johannesburg Metropolitan Municipality.

5 Cash and cash equivalentsPetty cash is reflected as cash on hand.

6 Property, plant and equipment The variance in Property, plant and equipment is attributable to the delay on capitalization of capital projects.It should be noted that certain assets can only be capitalised at the completion of the project.

7 Inter- Company receivables The amount relates to takeon balances from COJ. This is balances managed by COJ on behalf of Pikitup.

8 Finance lease obligation The amount relates to the leases of motor vehicles under a finance lease arrangement with The City of Johannesburg

9 Payables from exchange transactions

10 ProvisionsThis is provision for rehabilitation of landfill sites . The amount is adjusted for the interest unwinding on a monthly basis. The provision further includes accrual for performance bonus.

11 Loans to/from shareholders

12 Employee benefit obligation

The amount is attributable to trade creditors not yet paid at the end of the period, accrued leave pay, accrued 13th cheque and VAT control accounts.

Employee benefit obligation relates to medical aid, gratuity and housing subsidy for qualifying employees.

Notes

The amount represents capex loans outsanding . Currently only the interest is being serviced and no capital repayments are being made. The interest is paid on a quaterly basis.

Notes

1 Inventories

Inventories represent stock including bin liners, consumables , protective clothing and 240L bins held as at

end of the period.

2 Receivables from non-exchange transactions

Receivable from non exchange transactions consists of city cleaning levy.

3 Receivables from exchange transactions

Receivable from non exchange transactions consists of debtors net of provision for doubtful debts.

4 Other receivables - Sweeping

The sweeping account balance of R 235 587 669 . The sweeping account represent cash that is swept on

a daily basis as per the sweeping arrangement with the City of Johannesburg Metropolitan Municipality.

5 Cash and cash equivalents

Petty cash is reflected as cash on hand.

6 Property, plant and equipment

The variance in Property, plant and equipment is attributable to the delay on capitalization of capital

projects. It should be noted that certain assets can only be capitalised at the completion of the project.

7 Inter- Company receivables

The amount relates to takeon balances from COJ. This is balances managed by COJ on behalf of Pikitup.

8 Finance lease obligation

The amount relates to the leases of motor vehicles under a finance lease arrangement with The City of

Johannesburg

9 Payables from exchange transactions

The amount is attributable to trade creditors not yet paid at the end of the period, accrued leave pay,

accrued 13th cheque and VAT control accounts.

10 Provisions

This is provision for rehabilitation of landfill sites . The amount is adjusted for the interest unwinding on a

monthly basis. The provision further includes accrual for performance bonus.

11 Loans to/from shareholders

The amount is attributable to trade creditors not yet paid at the end of the period, accrued leave pay,

accrued 13th cheque and VAT control accounts.

12 Employee benefit obligation

Employee benefit obligation relates to medical aid, gratuity and housing subsidy for qualifying employees.

80

5.1 Statement of Financial Performance and high-level notes

Table 5.1.1: Statement of Financial Performance – Quarter 3 (January to March) 2019/20

Actual Budget Var Var Actual Budget Var Var Actual Budget Var VarR'000 R'000 R'000 % R'000 R'000 R'000 % R'000 R'000 R'000 %

Total Revenue 71 187 75 994 (4 807) 6.3% 595 751 575 652 20 099 3.5% 666 939 651 646 15 292 2.3%

Commercial 64 410 71 046 (6 636) -9.3% - - - 0.0% 64 410 71 046 (6 636) -9.3%Domestic - - - 0.0% 395 275 375 709 19 566 5.2% 395 275 375 709 19 566 5.2%City Cleaning Levy - - - 0.0% 42 925 43 806 (882) -2.0% 42 925 43 806 (882) -2.0%Interest - Debtors 6 793 4 844 1 949 40.2% 386 420 (33) -8.0% 7 179 5 263 1 916 36.4%Other Income (15) 104 (119) -114.6% 19 1 249 (1 229) -98.4% 4 1 353 (1 349) -99.7%Sweeping Account Interest - - - 0.0% 5 707 3 031 2 677 88.3% 5 707 3 031 2 677 88.3%CoJ Service Fee - - - 0.0% 151 439 151 438 0 0.0% 151 439 151 438 0 0.0% Total Expenses 84 186 114 001 29 816 26.2% 502 018 557 786 55 768 10.0% 586 203 671 788 85 584 12.7% Staff Costs 23 600 25 682 2 082 8.1% 280 595 305 936 25 341 8.3% 304 195 331 618 27 423 8.3%Provision for Bad Debt 12 205 15 034 2 829 18.8% 61 048 30 305 (30 743) -101.4% 73 253 45 339 (27 914) -61.6%Depreciation 8 035 6 386 (1 650) -25.8% 10 608 20 456 9 848 48.1% 18 643 26 841 8 198 30.5%Repairs and Maintenance (5) 1 906 1 911 100.2% (92) 3 191 3 284 102.9% (97) 5 098 5 195 101.9% Fleet 9 563 13 368 3 805 28.5% 97 139 95 195 (1 944) -2.0% 106 702 108 563 1 860 1.7% Third Party Contractors 9 705 23 182 13 476 58.1% 14 289 25 108 10 819 43.1% 23 995 48 290 24 295 50.3%Total Fleet & Third Party Contractors 19 268 36 550 17 281 47.3% 111 429 120 303 8 874 7.4% 130 697 156 853 26 156 16.7%Other Expenses 13 937 21 719 7 782 35.8% 17 471 49 003 31 532 64.3% 31 408 70 722 39 314 55.6%Interest Paid 5 904 5 310 (594) -11.2% 11 417 13 017 1 600 12.3% 17 321 18 327 1 006 5.5%Intercompany Costs 1 241 1 416 174 12.3% 9 542 15 575 6 033 38.7% 10 783 16 990 6 207 36.5% Surplus/(Deficit) (12 998) (38 008) 25 009 65.8% 93 734 17 866 75 867 424.6% 80 735 (20 141) 100 876 -500.8%Landfill Cost Reallocation 36 002 51 523 (15 521) -30.1% (36 002) (51 523) 15 521 30.1%Surplus/(Deficit) 23 004 13 516 9 488 70.2% 57 731 (33 657) 91 388 271.5%

Pikitup Statement of Financial Performance

Commercial (Quarter 3 2019/20) Municipal Service (Quarter 3 2019/20) Total Pikitup (Quarter 3 2019/20)

A surplus of R 80.735m was realized during the current quarter with a positive variance on total revenue and

underspending on expenditure other than the allowance for doubtful debt.

Revenue is above the budget due to general valuation roll adjustment on property values. Commercial services

revenue continue to struggle due to fleet non-availability that made it difficult to service and maintain existing

customers, however the unit managed to realize a profit of R23.004m mainly due to savings in expenditure.

Table 5.1.2: Statement of Financial Performance – Year to date March 2020

Actual Budget Var Var Actual Budget Var Var Actual Budget Var VarR'000 R'000 R'000 % R'000 R'000 R'000 % R'000 R'000 R'000 %

Total Revenue 220 293 215 463 4 830 2.2% 1 803 626 1 754 119 49 507 2.8% 2 023 919 1 969 581 54 338 2.8%

Commercial 199 475 198 477 998 0.5% - - - 0.0% 199 475 198 477 998 0.5%Domestic - - - 0.0% 1 188 889 1 144 765 44 124 3.9% 1 188 889 1 144 765 44 124 3.9%City Cleaning Levy - - - 0.0% 132 210 132 990 (779) -0.6% 132 210 132 990 (779) -0.6%Interest - Debtors 21 003 17 009 3 995 23.5% 1 620 1 286 334 26.0% 22 623 18 295 4 329 23.7%Grants - - - 0.0% - - - 0.0% - - - 0.0%Other Income (185) (23) (163) 722.8% 5 303 1 810 3 493 193.0% 5 118 1 787 3 331 186.4%Sweeping Account Interest - - - 0.0% 14 385 12 050 2 335 19.4% 14 385 12 050 2 335 19.4%CoJ Service Fee - - - 0.0% 461 219 461 218 1 0.0% 461 219 461 218 1 0.0%

Total Expenses 295 476 300 294 4 818 1.6% 1 576 689 1 610 351 33 662 2.1% 1 872 165 1 910 645 38 480 2.0% Staff Costs 71 590 79 253 7 662 9.7% 833 130 871 811 38 680 4.4% 904 721 951 064 46 343 4.9%Provision for Bad Debt 36 198 27 735 (8 463) -30.5% 181 058 139 014 (42 043) -30.2% 217 256 166 749 (50 506) -30.3%Depreciation 24 881 31 314 6 433 20.5% 33 957 40 915 6 958 17.0% 58 838 72 228 13 391 18.5%Repairs and Maintenance 785 4 797 4 012 83.6% 1 013 4 619 3 606 78.1% 1 798 9 416 7 618 80.9% Fleet 40 155 38 834 (1 320) -3.4% 321 568 283 850 (37 719) -13.3% 361 723 322 684 (39 039) -12.1% Third Party Contractors 52 411 61 386 8 975 14.6% 50 955 65 307 14 352 22.0% 103 366 126 693 23 327 18.4%Total Fleet & Third Party Contractors 92 566 100 220 7 655 7.6% 372 524 349 157 (23 367) -6.7% 465 089 449 377 (15 712) -3.5%Other Expenses 50 338 37 141 (13 198) -35.5% 100 368 141 200 40 832 28.9% 150 706 178 341 27 634 15.5%Interest Paid 17 559 17 910 351 2.0% 32 511 33 846 1 334 3.9% 50 070 51 756 1 686 3.3%Intercompany Costs 1 558 1 925 366 19.0% 22 128 29 789 7 661 25.7% 23 686 31 714 8 028 25.3% Surplus/(Deficit) (75 183) (84 831) 9 648 11.4% 226 937 143 768 83 169 57.8% 151 754 58 937 92 818 157.5%Landfill Cost Reallocation 124 818 129 579 (4 761) -3.7% (124 818) (129 579) 4 761 3.7%Surplus/(Deficit) 49 635 44 748 4 887 10.9% 102 119 14 188 87 931 619.7%

Pikitup Statement of Financial Performance

Commercial (YTD - March 2020) Municipal Service (YTD - March 2020) Total Pikitup (YTD - March 2020)

The entity realized a surplus of R 151.754m for year to date which was above the budgeted surplus of R58.937m.

Both municipal service revenue and commercial service revenue performed above the budget mainly due to the

general valuation roll adjustment on property values and mid-year adjustment for commercial service revenue.


During the third quarter the operating budget was approved by the City, with the highlights being as follows:

Revenue budget was increased by R 130.566m.

• Commercial services revenue was reduced to factor the impact of continuous unavailability of reliable fleet

to service customers consistently throughout the period.

• Domestic income budget increased by R 120.082m to recognize additional revenue due to the increase in

property values due to the application of general valuation.

• The CoJ Subsidy increased by R 17.829m to fund the KleenaJoburg and education and awareness campaigns.

Operating expenditure budget was increased by R 130.566m.

• Employees costs budget was increased by R 28.337m to allow for employees currently working a 3-day

week to work a 5-day week.

• The allowance of doubtful debt increased by R 64.548m in line with the prior financial year estimate basis.

• Fleet cost increased by R 51.101m to cover the additional expenditure for ad-hoc fleet costs. The current

fleet is already beyond its useful life and is no longer reliable, the entity relies on ad-hoc fleet to augment its

current aged fleet to provide service delivery to the residents of the city.

• Other expenditure increased by R 57.630m. The main increases were for security costs amounting to R

37.284m and Kleena Joburg and education and awareness campaigns amounting to R 17.399m.

• Intercompany costs decreased by R 25.388m due to the insourcing of security employees who are paid by

the City on behalf of Pikitup

Capital budget adjustment for the whole City was not approved.

5.2 Revenue

Table 5.2.1: Total income generated from commercial services

Actual Budget Var Actual Budget Var Actual Budget VarR'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000

Bulk Container Services 11 774 16 223 (4 449) 17 309 14 317 2 992 13 723 19 748 (6 025) Landfill Fees 13 837 12 273 1 564 14 832 7 594 7 238 14 831 14 608 224 Business & Institutional RCR 29 585 32 569 (2 984) 30 796 32 827 (2 031) 30 709 31 442 (732) Business Dailies 5 040 5 825 (785) 5 218 5 784 (565) 5 146 5 247 (101) Safe Disposal - 1 (1) - 1 (1) - 1 (1) Total Commercial Services 60 236 66 891 (6 655) 68 155 60 522 7 633 64 410 71 046 (6 636)

Quarter 3 2018/19 Quarter 2 2019/20 Quarter 3 2019/20Description

Commercial services revenue for the quarter increased when compared to the same period in the prior financial

year mainly due to the increased tariffs. The reduction of revenue in quarter 3 compared to quarter 2 is due to

the final weeks of the quarter for bulk container services slips not being processed in time before the COVID-19

shutdown/lockdown. Landfill revenue was accrued for the quarter, hence is the same amount quarter on quarter.

Details per activity for the quarter include:

• Bulk container services revenue increased when compared to the third quarter of the prior financial year mainly

due to the price increase implemented effective from 01 July 2019.

• Landfills revenue has been accrued pending the finalization of the capturing of the weighbridge slips.

• Business RCR revenue increased marginally compared to the third quarter in the prior financial year due to the

price increase that was negatively affected by the continuous loss of customers.

• Business dailies revenue increased by 2.1% when compared to prior financial year. The impact of the increase

in price was reduced by the continuous loss of customers

82

Municipal services income

Table 5.2.2: Total income generated from municipal services


City Cleaning Levy 34 961 36 689 (1 728) 44 397 44 294 103 42 925 43 806 (882) Domestic RCR 364 106 322 304 41 802 394 411 369 853 24 558 395 275 375 709 19 566 CoJ Service Fee 135 019 135 019 - 154 890 154 890 0 151 439 151 438 -

DescriptionQuarter 3 2018/19 Quarter 2 2019/20 Quarter 3 2019/20

• City cleaning levy revenue increased compared to the third quarter in the prior financial year as a result of the

tariff increase and new properties registered during the year.

• Domestic RCR revenue increased when compared to the result in the same period in the prior financial year as

a result of the tariff increase and new properties registered during the year.

• The subsidy received from the City increased when compared to the third quarter of the prior financial year to

finance the insourcing of former Jozi@work and 2010 employees and the security costs.

5.3 Expenditure

Salaries and Related Costs

Table 5.3.1: People costs


Basic Services 177 510 198 936 21 426 177 926 194 966 17 039 198 656 209 597 10 941 Staff Bonus 15 011 15 011 - 16 177 16 609 433 17 224 17 457 233 Overtime 20 823 19 167 (1 656) 25 307 24 612 (696) 25 137 23 961 (1 176) Leave Provision 1 672 3 847 2 175 12 217 10 045 (2 172) (6 537) 5 113 11 649 Pension Fund Contribution 28 637 28 337 (300) 30 404 31 378 975 31 257 33 063 1 806 Medical Aid 20 178 18 755 (1 423) 20 213 21 741 1 528 22 548 24 031 1 482 Other Staff Costs 21 847 21 860 13 14 151 15 964 1 813 15 909 18 396 2 487 Total Staff Costs 285 678 305 913 20 235 296 395 315 315 18 920 304 195 331 618 27 423


Employees costs are R 27.423m under budget for the quarter as a result the continued employees attrition and

delays in the appointment of employees. An amount of R 17.000m was set aside from the underspending to fund

the EPWP project over the holiday period, though this was not fully utilized.

• Basic salary costs have increased compared to the third quarter of the prior financial year due to the SALGA

mandated general salary increase as well as an increase in working days from 3 to 5 for certain employees

absorbed in the prior financial year.

• The employees bonus provision relating to employees guaranteed a ‘13th cheque’ and those on a performance-

based contract, is in line with budget, however, it has increased when compared to the third quarter in the

prior financial year as a result of the SALGA increase.

• Overtime costs have increased when compared to the third quarter in the prior financial year due to:

- The SALGA mandated general salary increase.

- The 2010 contract workers employed being able to earn overtime.

• Overtime costs were under extreme pressure (when compared to the budget) for the prior financial year – a

trend that has extended to the current financial year.

• The employees leave provision has decreased when compared to the result in the third quarter of the prior

financial year, though fluctuations in the leave patterns are to be expected. Costs are under budget for the

financial year to date.


• Pension fund and medical aid contributions both increased when compared to the prior financial year as a

result of the SALGA and CPI increases.

• Other minor employees costs are under budget for the quarter.

Allowance for doubtful debt

Table 5.3.2: Allowance for doubtful debt


Domestic 29 171 20 069 (9 102) 55 011 37 749 (17 261) 56 052 34 707 (21 345) City Cleaning 2 448 1 685 (763) 4 995 3 428 (1 567) 4 996 3 125 (1 870) Total Core 31 619 21 754 (9 865) 60 006 41 178 (18 828) 61 048 37 833 (23 215) Commercial 5 880 4 046 (1 834) 11 997 8 232 (3 764) 12 205 7 506 (4 699) Total Provision for Bad Debts 37 499 25 800 (11 699) 72 003 49 410 (22 593) 73 253 45 339 (27 914)


The allowance for doubtful debt is an estimate based on the result in the prior financial year end. Costs are over

budget due to an increase in allowance for doubtful debt amount required in line with the prior financial year end

adjustment.

Repairs and Maintenance

Table 5.3.3: Repairs and Maintenance


Buildings and Fencing 392 1 957 1 565 744 1 603 859 (33) 1 975 2 008 Containers - 72 72 - 50 50 - 81 81 Garden Sites - 1 175 1 175 - 921 921 - 1 489 1 489 Plant and Machinery (5) 1 305 1 310 0 593 593 (64) 1 553 1 617 Total R&M (excluding Fleet) 387 4 509 4 122 744 3 167 2 423 (97) 5 098 5 195 Fleet: R&M 20 105 14 449 (5 656) 38 442 23 368 (15 074) 15 346 19 322 3 976 Total R&M (including Fleet) 20 492 18 958 (1 534) 39 186 26 535 (12 651) 15 249 24 420 9 170


Repairs and maintenance costs excluding fleet for the quarter have decreased when compared to the result in the

third quarter of the prior financial year as a result of over accruals processed in the second quarter of the current

financial year. Fleet maintenance costs have decreased when compared to the result in the third quarter of the prior

financial year. Most unreliable fleet have been replaced/scrapped and replaced by the use of ad-hoc fleet.

As a percentage of Property Plant and Equipment (at carrying value), maintenance expenditure (total value of R

15.249m compared to a budget of R 24.420m) for the quarter is 3% and for the financial year to date is 14%.

This is a negative result compared to the year-end target of 8.0% as R&M for fleet is being spent on unreliable fleet

instead of being an investment on the performance of the productive assets.

84

Depreciation and Interest

Table 5.3.4: Depreciation and Finance Costs for Assets


Depreciation 23 679 26 803 3 124 19 869 25 061 5 192 18 643 26 841 8 198 Interest 14 953 15 336 383 16 401 17 081 680 17 321 18 327 1 006


Depreciation costs have decreased when compared to the result in the prior financial year as a result of assets

either written off or fully depreciated during the 2018/19 and 2019/20 financial years. New capital projects are not

yet commissioned as they are multi-year projects that are not yet completed.

Interest costs have increased when compared to the prior financial year as a result of the additional loans related

to the capital expenditure.

Third Party and Fleet Costs

Table 5.3.5: Third Party and Fleet Costs (Including Fleet Maintenance)


Fleet: Ad-hoc Lease 72 008 55 898 (16 110) 84 664 66 517 (18 147) 82 841 69 413 (13 428) Fleet: Fuel 14 126 14 795 669 22 928 22 507 (421) 8 515 16 328 7 813 Fleet: R&M 20 105 14 449 (5 656) 38 442 23 368 (15 074) 15 346 19 322 3 976 Fleet: Insurance - 11 017 11 017 7 259 - (7 259) - 3 500 3 500 Total Fleet 106 239 96 159 (10 080) 153 293 112 392 (40 900) 106 702 108 563 1 860 Contract Waste Cleaning 140 79 (61) (0) 51 51 76 118 41 Casual Services - 1 305 1 305 - 113 113 185 232 47 Mobile Plant Hire 15 488 36 702 21 214 46 119 43 114 (3 005) 17 605 40 596 22 991 Separation at Source 9 814 10 489 675 5 877 7 750 1 873 6 128 7 344 1 216 Total Third Party Costs 25 442 48 575 23 133 51 996 51 028 (968) 23 995 48 290 24 295 Total Fleet and Third Party Contractors 131 681 144 734 13 053 205 288 163 420 (41 868) 130 697 156 853 26 156


Fleet Costs:

Total fleet costs for the quarter is relatively the same as the comparative period of last financial year but decreased

compared to last quarter.

• Ad-Hoc vehicles are leased when City owned vehicles are not available and costs have significantly increased

when compared with the same period in the prior financial year as the availability of the City owned vehicles

has decreased year on year as the CoJ owned fleet is well beyond its economic lifespan. The entity makes use

of ad-hoc fleet to augment the current fleet for service delivery purpose.

• Fleet fuel and maintenance costs have decreased when compared to the result in the third quarter of the

prior financial year due to the de-fleeting of some of the more problematic CoJ owned vehicles and use of

ad-hoc vehicles which are leased at a ‘wet rate’ including fuel. There is also an impact of fuel price reduction

witnessed during the current quarter.

• No costs were incurred for fleet insurance in the current quarter, though for the financial year to date costs

have decreased when compared to the prior financial year which is in line with the de-fleeting of some of the

CoJ owned fleet.

Third Party Costs:

Third party contractor costs show a decrease when compared to the prior quarter.


• Minor costs for casual employees or contract waste cleaning have been incurred during the quarter.

• Yellow plant (mobile plant) is hired for use at the garden sites, for the clearing of illegal dumping and for the

landfills. Costs are in line with the result in the third quarter of the prior financial year, however, they have

decreased when compared with the second quarter of the current financial year as a result of the illegal

dumping plant usage being minimal (contract cancelled in the current quarter). In addition, costs for the first

quarter of the current financial year were processed in the second quarter, resulting in the inflated result in

the second quarter.

• Costs for separation at source are in line with the result in the second quarter of the current financial year.

General Expenses

Table 5.3.6: General expenses


Landfill Rehabilitation 9 678 5 576 (4 102) 10 175 4 044 (6 131) 10 175 1 805 (8 370) Guarding of Property 6 563 6 045 (518) 10 644 3 396 (7 248) 4 712 5 405 693 Disposal Fees 13 047 8 150 (4 897) 11 908 8 357 (3 551) 353 10 492 10 139 Bin Liners 4 234 5 022 787 5 912 5 362 (550) 3 758 5 582 1 824 IT Costs 1 443 3 665 2 221 5 869 2 480 (3 389) 100 4 098 3 998 Water Supply. 2 382 2 796 415 1 843 2 590 747 2 571 3 740 1 169 Rents 2 392 2 747 355 2 855 3 154 299 2 472 3 087 614 Electricity Supply 1 125 1 973 848 1 197 1 740 543 1 833 2 651 819 Uniforms and Protective Clothing 1 079 5 261 4 183 2 861 4 161 1 300 1 457 6 925 5 468 240L Bins 2 413 5 689 3 276 79 3 903 3 823 772 6 016 5 244 Environmental Education 32 3 138 3 106 46 2 596 2 550 319 6 301 5 982 Other 4 444 15 259 10 815 11 790 11 717 (73) 2 886 14 620 11 734 Total Other Expenses 48 832 65 321 16 489 65 179 53 500 (11 679) 31 408 70 722 39 314


General expenses are R 39.314m under budget for the quarter and have decreased when compared to the result

in the third quarter of the prior financial year. Major variances are due to:

• Costs for the landfill rehabilitation are estimated during the financial year and only fully calculated as part of

the year end process and thus variances during the financial year can be expected. Due to budget allocations

from the City being lower than expected this non-cash item was not fully funded in the budget.

• Security costs are in line with the costs incurred in the third quarter of the prior financial year. During quarter 2,

more theft or the risk of threat to company assets was reported that warrant the deployment of armed guards.

• Disposal costs are lower in the current quarter due to the reversal of accrual amounting to R 5.084m that

should have been reversed in the second quarter.

• Bin liner costs have decreased when compared to the prior financial year as a result of stock shortages in the

current quarter.

• IT costs have decreased when compared to the third quarter in the prior financial year due to the reversal of

accrual amounting to R 2.585m in the current quarter that should have been reversed in the second quarter.

• Water and electricity costs from the City have been, and remain, extremely variable.

• Rental costs for head office and Midrand depot buildings are in line with the budget.

• Uniform and protective clothing costs have increased when compared to the third quarter of the prior financial

year in line with the increased employees compliment (insourcing of employees), though remain under budget

due to delays in the issuing of protective clothing to employees.

• The new contract for the 240L bins was finalized in the current quarter, and expenditure is expected to

accelerate significantly in the final quarter of the financial year.

• Environmental education costs are under budget for the quarter and financial year to date. Education and

awareness campaigns have not yet been rolled out by the unit.

• Other, minor general expenses show an underspending for the quarter.

86

5.4 Cash Flow Statement

Table 5.4.1: Cash Flow Statement

Quarter 1 Quarter 2 January 2020 February 2020 March 2020 Quarter 3 Actual Actual Actual Actual Actual Actual Rands Rands Rands Rands Rands Rands

Opening Bank Balance 215 786 903 87 013 474 264 479 406 386 598 028 238 902 530 264 479 406

Total Cash Receipts by Source including Internal Transfers 566 381 718 715 514 888 286 531 082 215 451 172 235 567 168 737 549 422

Cash Receipt by Source 309 101 323 515 412 577 225 300 634 130 469 764 174 287 696 530 058 095 Service Charges - Refuse Revenue 294 928 504 505 915 513 224 714 629 129 190 349 174 120 590 528 025 567 Other Revenue 14 172 819 9 497 065 586 006 1 279 415 167 107 2 032 528

Inter-departmental and MOE Receipts (Internal Transfers) 257 280 395 200 102 311 61 230 447 84 981 408 61 279 472 207 491 327 Interest Income 4 270 386 4 407 307 1 855 947 1 946 493 1 904 972 5 707 412 Operating Grants grants & Subsidies from CoJ 178 123 500 178 123 500 59 374 500 59 374 500 59 374 500 178 123 500 Borrowing long term/refinancing 74 886 509 17 571 504 - 23 660 416 - 23 660 416

Total Expenditure including Internal Transfers 695 155 147- 538 048 956- 164 412 459- 363 146 670- 243 327 772- 770 886 901-

Cash Payments by Type - 314 020 227 - 256 967 465 - 60 812 124 - 81 564 105 - 111 360 358 - 253 736 588 Contracted Services - 275 705 252 - 176 644 693 - 45 377 833 - 69 843 183 - 96 056 293 - 211 277 309 General Expenses - 38 314 975 - 80 322 771 - 15 434 290 - 11 720 923 - 15 304 065 - 42 459 278

Other Cash Flows/Payments by Type - 99 420 005 - 87 273 244 - 12 295 718 - 7 077 627 - 13 598 967 - 32 972 311 Capital Assets - 38 335 587 - 30 876 011 - 318 638 - 7 077 627 - 1 621 887 - 9 018 152 VAT Intput - 61 084 418 - 56 397 232 - 11 977 080 - - 11 977 080 - 23 954 160

Inter-departmental and MOE Receipts (Internal Transfers) - 281 714 915 - 193 808 248 - 91 304 617 - 274 504 939 - 118 368 447 - 484 178 003 Repayment of Borrowing - Salaries - 266 240 642 - 177 730 301 - 91 304 617 - 274 504 939 - 102 018 297 - 467 827 853 Interest on shareholders loans - 15 474 272 - 16 077 947 - - - 16 350 150 - 16 350 150

Closing Bank Balance 87 013 474 264 479 406 386 598 028 238 902 530 231 141 927 231 141 927

Pikitup Cash Flow Statement - 2019/20 Financial Year

The entity closes the quarter with R 231.142m at the bank. This amounts to cash coverage ratio of 1.07 months

which is within the targeted cash coverage range of 1 to 3 months.

5.5 Capital Projects & Expenditure Table 5.5.1: Capital Expenditure (Year to date)

Actual Expenditure Committed

Total Actual and

Committed Budget Variance Completion R'000 R'000 R'000 R'000 R'000 %

Separation at Source 12 124 7 710 19 833 19 999 166 99.2%Robinson Deep Landfill 0 0 0 1 000 1 000 0.0%Garden Sites 26 558 11 803 38 361 40 000 1 639 95.9%Waste Bulk Container 1 004 1 971 2 975 5 000 2 025 59.5%Facilities 25 826 8 443 34 269 36 251 1 982 94.5%Total 65 512 29 927 95 439 102 250 6 811 93.3%

Capex Spend Actual Expenditure

Total Actual and

Committed % Spent 64.1% 93.3%% Spent - Target 63.1% 100.0%Prior year % Spent 34.0% 46.0%

Project


Capital expenditure for the financial year to date is R 65.512m which amounts to the actual capital expenditure

rate of 64.1% against the target of 75%. The capital expenditure for the quarter was affected by the confusion

of the non-approval of the mid-year capital adjustment budget by the Council and the impact of the Covid19,

however, an improvement when compared to the prior financial year, an increase from 34.0% to 64.1%.

5.6 Ratio Analysis (minimum: liquidity, solvency, cost coverage)

Table 5.6.1: Financial Ratios

2018/19 Q4 2019/20 Q1 2019/20 Q2 2019/20 Q3

Remuneration as % of Total Operating Expenditure 47% 50% 43% 52% 25%-40% 25%-40% A.Repairs and Maintenance as a % of Property, Plant and Equipment and Investment Property (Carrying Value) 4% 4% 7% 3% 8% per annum 8% per annum B.Interest Expense to Total Operating Expenditure 2% 3% 2% 3% 8% 6% to 8% C.Net Operating Surplus Margin -5% 11% 0% 12% >0.0% ≥0.0% D.Operating Expenditure vs Budget 90% 100% 109% 87% 95%-100% E.Cash / Cost Coverage Ratio In Months 1.15 0.51 1.58 1.07 1.00-3.00 1.00-3.00 F.Current Ratio 0.74 0.74 0.77 0.88 1.5 - 2:1 1.5 - 2:1 G.Solvency Ratio 1.08 1.11 1.08 1.11 2.1: 1 H.Debt (Total Borrowings) / Revenue 33% 27% 32% 24% 45% 45% I.Creditors Payment Period In Days 113.95 91.25 97.06 101.68 <30.00 J.Debtors Collection Rate 73% 72% 73% 88% 95% K.

Pikitup CoJ Target NT TargetRatio Note

A. Remuneration as a percentage of total operating expenditure is higher than the City target as a result of the

labor intensive nature of the industry as well as the absorption of employees.

The increase in the current quarter is due to the use of EPWP employees over the festive reason (paid in the

current quarter) and the increased costs for the employees now working a 5 day week rather than a 3 day

week.

B. The repairs and maintenance percentage is an annual target of 8%, Pikitup has spent 3% in the current

quarter and from a year to date perspective has already exceeded the annual target (14% compared to 8%)

as a result of the repairs and maintenance of the CoJ owned fleet which are beyond their economic lifespan.

C. The interest expense costs are low as a result of the low debt level of the entity.

D. The entity realized a surplus for the quarter.

E. For the quarter operating expenditure compared to budget is 87%, though for the financial year to date is

98%, in line with National Treasury expectations.

F. The cash (including the sweeping account balance) coverage ratio has decreased in the quarter, however, it is

in line with the result at the end of the prior financial year

G. The current ratio is lower than the target but shows an improvement when compared to the results in the prior

quarter and at the end of the prior financial year.

H. The solvency ratio has remained stable when compared to the end of the prior financial year, however, it is still

below the City target.

88

I. The debt to revenue ratio is lower than the City target, which is positive.

J. The creditor’s payment period in days is higher than the National Treasury requirement due to challenges in

the adherence to the accounts payment policy. There is motivation attached to each invoice paid longer than

30 days to explain the reason of the delays.

K. The debtor’s collection rate has increased in the current quarter. Collections are controlled by the City.

5.7 Supply Chain Management and BBBEE

5.7.1 Deviations incurred in terms of Regulation 32 and 36

There were no Regulations 32 deviations recorded during the quarter.

5.7.2 Regulation 36 deviation for the quarter:

No Awarded Bidder Services Amount (incl VAT)

(R) R32/003/2019 Dimension Data (Pty) Ltd R3 360 208.04

1.R32/003/2019 Dimension

Data (Pty) LtdIT Outsourced Services - Contract Continuation (Exceptional cases) 3 360 208

2.DPM006/2018 Harmony

Plastics (Pty)Ltd

Appointment of a service provider to supply and delivery of bin liners on month

to month basis for a period not exceeding 3 months (Exceptional cases)4 274 669

3. XCO Group COVID19 Emergency supply - Gloves (262 boxes) 26 566

4. Megaphase Trading COVID19 Emergency supply - Soaps (11 000 bars) 145 475

5. Kingship COVID19 Emergency supply - Masks (4000) 299 000

6. Mamulo COVID19 Emergency supply - Sanitizers (822 - 500ml Bottles) 155 975

7. Four Eleven Distributors COVID19 Emergency supply - Sanitizers (3000 - 500ml Bottles) 402 960

8. Wini Medical COVID19 Emergency supply - Soaps (542), Gloves (210 boxes, Sanitizers (25) 30 897

9. Senzeni Trading COVID19 Emergency supply - Gloves (120), Masks (5500), sanitizers (500) 464 198

Total 9 159 946

5.7.3 Payments within 30 Days

Table 5.7.3.1 below shows the number of payments made within 30 days against total payments.

Table 5.7.3.1: Number of payments made within 30 days

Payment Classification Invoices Value Percentage

Payments over 30 days 60 R 11.524m 10.5%

Payments within 30 days 497 R 256.387m 89.5%

Total Payments 555 R 267.911m 100.0%

A total number of 555 invoices were processed for payments during the quarter of which 90% (497)

were paid within 30 days against the target of 95%.


5.7.4 Irregular Expenditure

The following irregular expenditure was incurred/discovered during the quarter.

Table 5.7.4.1: Irregular Expenditure

Irregular Expenditure Amounts

2019/20

Q1

2019/20

Q2

2019/20

Q3

Opening Balance R877 246 089 R886 620 271 R969 552 239

Sungu Sungu – Landfill operations R5 192 926 R21 634 462 R17 602 214

Fleet - Avis R4 181 256 R3 810 617 R4 260 777

Security – Multiple Service providers R0 R13 934 947 R0

Afrirent – Fleet rental for 2019/20 R0 R40 938 156 R17 991 761

Dimension Data R0 R2 613 785 R0

Closing Balance R886 620 271 R969 552 239 R1 009 406 991

R568 761 370 of the irregular expenditure amount relates to the period 2011/12, 2012/13, 2013/14,

2015/16 and 2016/2017 and it has already been investigated and the report for condonement has

already been submitted to MPAC for consideration. Majority of the irregular expenditure incurred

during the last two financial years relates to contracts managed by the City on behalf of the entity.

The Internal Audit unit is busy investigating the remaining balance and once completed, the report

will then be submitted to the relevant governance structures for consideration. Corrective action and

any consequence management recommendation will be implemented.

Afrirent and Avis relates to contracts irregularly concluded/procured by the City and Sungu sungu

expenditure relates to services rendered with no valid contract in place.

5.7.5 Fruitless and Wasteful Expenditure

No fruitless and wasteful expenditure has been identified during the quarter.

5.7.6 Compliance with rules and regulations

There were no instances of non-compliance with rules and regulations identified during the quarter, within finance

and supply chain management functions excepting those that led to the irregular expenditure mentioned above.

5.7.7 Broad Based Black Economic Empowerment

Table 5.7.7.1: BBBEE (Based on Awards)

Category Target per Quarter 2019/20 Actual Q3

Black Owned 75% 86%

Women Owned 25% 37%

SMME 30% 100%

All SCM ratios were above the target and continuous intervention will be implemented to ensure compliance with

SCM processes and BBBEE empowerment initiatives.

90

Table 5.7.7.2: below contains a summary of BBBEE levels for bids awarded during the quarter.

Table 5.7.7.2 – BBBEE Scorecard

BEE Level Points Bids Awarded Value (incl VAT)

Level 1 10 or 20 15 R 16.184m

Level 2 9 or 18 5 R 13.961m

Total 20 R 30.145m

There were no awards to BBBEE levels below level 3 and below.

5.8 Pending Litigation and Possible Liabilities

Contingent Liability on Pending Litigation Matters as at March 2020(For The 2019/2020 Financial Year

Forum &

Commencement Parties Merits and Relief Claimed Amount Comments

Forum: High

Court

Date: 2014

Plaintiff: Gaza

Homes

Defendant: Pikitup

Johannesburg (SOC)

Ltd

In re: Plaintiff claims for

services rendered and not

paid for.

Relief: Payment of money

owed.

R333 790 – Total

amount claimed

The pre-trial conference

date has been applied

for and may be allocated

for late 2019 or early

2020.

Forum: Labour Court

Date: 2019

Applicant: N Mutero

Respondent: PIKITUP Johannesburg

(SOC) Ltd

In re: Mr Mutero took Pikitup

to Labour Court for review

of Arbitration Award granted

by SALGBC after an unfair

dismissal dispute was referred

after termination of his

services (retrenchment)

Relief: Re-instatement

R2 824 452 – The

amount to be paid

should PIKITUP loose

the matter after two

years.

The opposing papers

were served and filed

and we are awaiting

Mutero to set the matter

down.

Forum: Johannesburg Regional Court

Date: 2019

Applicant: Pinpoint One

Respondent: PIKITUP Johannesburg

(SOC) Ltd

In re: Pinpoint One sued

Pikitup for services rendered

and not paid for.

Relief: Payment of the

claimed amount

R327 750 – The

amount to be paid

should PIKITUP loose

the matter.

The pleadings are closed

and the Plaintiff refused

to cooperate during

settlement negotiations

and the matter will

proceed to trial.

TOTAL R3 485 992


ar 2019-20)91

Claim Number Nature of Loss Date of Incident Description of Incident Internal Ref No Insurance Year Date Reported

PIKI/0120/043160/

GPA

Health / Sickness / Not

Work / Related

29 January 2020 Injury Claim for Phatheka

On The 29 Of January 2020 She Collapse

And Fell

Norwood Depot 2019 - 2020 26 February 2020

PIKI/0120/041936/

GPA

Health / Accident

(Occupational)

02 January 2020 Death Claim for F Gedion Mugwena

Pikitup Employees Were Busy Collecting

Waste on That Area. The Deceased Run

Over the Truck, While He Was Loading the

Bins He Slip and Fall Under Truck and He

Was Going to Hospital on Way He Pass

Away.

Randburg 2019 - 2020 08 January 2020

Claim Number Surname Nature of LossRegistration

NumberDate of Incident Description of Incident

PIKI/0120/042717/MORDamaged /

StonedCP25RNGP 08 January 2020 Left Side Step And Front Wheel Got Damaged

PIKI/0120/042719/MOR Naryn Tp Hit Insured CP25RNGP 21 January 20203rd Party Vehicle Bumped Pikitup Vehicle at The Back and Damaged

Tailgate, Bumper and Right Side Steps

PIKI/0220/043241/MOR Kgatte Insured Hit Tp DS24SXGP 12 February 2020 Pikitup Vehicle Bumped The 3rd Party Vehicle on The Right Side

PIKI/0320/044652/MOR Insured Hit Tp DM27PJGP 03 March 2020Pikitup Vehicle Bumped Into 3rd Party Vehicle on Rear Bumper and

Boot

PIKI/0320/044655/MOR Metsi Insured Hit Tp CN16HRGP 03 March 2020 Pikitup Vehicle Collided With 3rd Party Vehicle

PIKI/0120/043279/MOR SaulsCollision /

ReversingCZ11WDGP 21 January 2020

Cz11wdgp Was Reversing When the Truck Hit 3rd Party Vehicle

Dx76kjgp Damaging Front Bumper. No Damages on Cz11wdgp

PIKI/0220/043178/MOR Kgatle Collision DS24SXGP 12 February 2020

While Ds24sxgp Was Travelling Along Elsie Motwaledi On the Right

Lane and Didnt See A 3rd Party Bz55yfgp Damaging the Right-Hand

Side

5.9 Insurance Claims against/to MOE

92 Claim Number Surname Nature of LossRegistration


PIKI/0220/043075/MOR Collision VFM049GP 16 February 2020

Vmf049gp Was Along Elloff Street to The Springfield Landfill, Following

A 3rd Party Vehicle Pulling A Trailer and Suddenly Made A U-Turn

Without Indicating Causing Vmf049gp To Bump the Trailer. 3rd Party

Driver Did Not Stop.

PIKI/0120/042558/MOR Msizi Collision DT89PJGP 23 January 2020 3rd Party Vehicle Collided with Pikitup Vehicle and Both Got Damaged

PIKI/0120/042555/MOR Radise Tp Hit Insured DP22CXGP 29 January 2020 3rd Party Vehicle Reversed into Pikitup Vehicle and Damaged It

PIKI/0220/043008/MOR Senemela Insured Hit Tp CY56FFGP 12 February 2020 Pikitup Vehicle Bumped The 3rd Party Vehicle by His Tailgate

PIKI/0120/042275/MOR Naidoo Tp Hit Insured TYD121GP 10 January 2020 3rd Party Vehicle Bumped Pikitup Vehicle on Front Right Wheel

PIKI/0120/042494/MOR Tp Hit Insured CV76ZSGP 27 January 2020 Cw69cmgp Bumped into Cv76zsgp While Reversing


StonedVCT449GP 27 January 2020 Front Left Head Lamp Damaged by A Steel Object

PIKI/0220/043263/MOR Madiba Tp Hit Insured TYD116GP 24 February 2020 The 3rd Party Vehicle Bumped Pikitup Vehicle on The Fuel Tank

PIKI/0120/043317/MORWindscreen /

GlassDS13LZGP 09 January 2020 Windscreen

PIKI/0220/043391/MOR Collision DS13LZGP 06 February 2020 Rear Below Towbar Of Tailgate

PIKI/0220/042954/MOR Henegan Insured Hit Tp JG66FFGP 07 February 2020 Insured Bumped by Third Party. Damaged Rh/S Corner


StonedHW60ZJGP 16 January 2020 Right Front Window and Right Front Side Fender Damaged

PIKI/0120/042343/MOR Pillay Tp Hit Insured DT15XWGP 19 January 2020 3rd Party Vehicle Bumped Pikitup Vehicle from Behind


StonedDN79SYGP 23 January 2020

The Lto Was Doing Inspection on Vehicle and Found That the Rear

Panel Was Damaged


StonedCV42HMGP 03 February 2020

Left Side Front Door Indicator, Headlight and Left Side Panel Damaged

by The Gate

PIKI/0220/042929/MOR Complex Insured Hit Tp CY24CSGP 07 February 2020 The Complex Gate Automatically Closed While the Truck Exiting Gate


ar 2019-20)93




GlassCM49PGGP 17 February 2020

The Lto Was Doing Inspection on Vehicle and Found the Windscreen

Damaged


GlassDM79SYGP 18 February 2020

The Lto Was Doing Inspection on Vehicle and Found the Windscreen

Damaged

PIKI/0220/043392/MOR Mvubu Collision 2014 20 February 2020 Pikitup Vehicle Collided With 3rd Party Vehicle

PIKI/0220/043615/MOR Insured Hit Tp CM28YBGP 24 February 2020 Pikitup Vehicle Hooked The 3rd Party Vehicle on The Right-Side Mirror


StonedCV42HCGP 28 February 2020

Front Bumper, Both Door Arch and Windscreen Damaged While Trying

to Park the Vehicle

PIKI/0320/043620/MOR Dlamini Insured Hit Tp CM28YBGP 11 March 2020Pikitup Vehicle Bumped The 3rd Party Vehicle on The Front Left Bumper

and Front Left Tool Bar


StonedDR88JVGP 13 March 2020 The Truck Knocked the Gate and Damaged on The Front Side Portion

PIKI/0320/044759/MOR Masongo Tp Hit Insured DT15XWGP 17 March 2020 3rd Party Vehicle Bumped Pikitup Vehicle from Behind


StonedDP22FHGP 17 March 2020

The Lto Was Doing Inspection on Vehicle and Found That the Front Left

Step Was Damaged

PIKI/0120/043051/MORCollision /

ReversingWGC885GP 31 January 2020

While Wgc885gp Was Reversing at The Landfill, Driver Knocked A Bin

Damaging Rear Lights, Tail Gate Lock and Rear Bumper

PIKI/0220/043052/MOR Vincent Collision CV42FWGP 05 February 2020

Cv42fwgp Was Travelling Peace Street in Modderfotein Failed to

Control the Truck Hitting A 3rd Party from Behind Damaging Rear

Lights, Bumper, Boot and Left Corner Side

PIKI/0120/042370/MOR Weltevreden Park Insured Hit Tp CV79WCGP 17 January 2020The Driver Lost Control and Bumped the Tree Causing Damages on The

Fence and Ccv Camera

PIKI/0120/042712/MOR Brannon Insured Hit Tp VBW358GP 21 January 2020Vbw358gp Bumped into Fv23smgp Then That Fv23smgp Bumped the

Other Vehicles


GlassVBW358GP 08 February 2020 Windscreen Damaged by Tree Branches


GlassCP25MFGP 14 February 2020

The Lto Was Doing Inspection on Vehicle and Found That the

Windscreen Was Damaged

94 Claim Number Surname Nature of LossRegistration



StonedDP22FFGP 18 February 2020

The Lto Was Doing Inspection and Found That the Front Bumper and

Tailgate Door Damaged


StonedCZ27LZGP 28 February 2020

The Lto Was Doing Inspection on Vehicle and Found the Front Bumper

and Tailgate Door Damaged


StonedCZ27MMGP 28 February 2020 Front and Back Damages Found While Doing Inspection on Vehicle


StonedCX11FPGP 28 February 2020 Front Damages Found While Doing Inspection on Vehicle


StonedDP22DSGP 28 February 2020 Front Bumper and Back Damages Found on Vehicle


StonedDV28LGGP 02 March 2020

Front Bumper, Tailgate and Rear Crew Found Damaged While Doing

Inspection


StonedCZ27MKGP 02 March 2020

The Lto Was Doing Inspection on Vehicle and Found That the Front

Portion, Front Bumper and Rear Tailgate Damaged


StonedVYS303GP 02 March 2020

The Lto Was Doing Inspection on Vehicle and Found That Front Bumper

Dented, Number Plate Light and Tailgate Damaged


StonedVMF057GP 02 March 2020

The Lto Was Doing Inspection on Vehicle and Found That Driver’s Step

and Passenger Step Missing


StonedDP22CKGP 02 March 2020

The Lto Was Doing Inspection on Vehicle and Found That front And

Back Portion Damaged


StonedTYG153GP 14 March 2020 Tailgate Damaged by A Bull Dozer

PIKI/0220/043101/MOR Collision DP22FFGP 18 February 2020While Assistant Lto Was Doing Vehicle Inspections He Found the

Following Damages on Dp22ffgp: Tailgate Door

PIKI/0120/042276/MOR Zondo Insured Hit Tp VFS439GP 07 January 2020 Pikitup Bumped The 3rd Party Vehicle on The Boot and Rear Bumper


StonedWFB128GP 08 January 2020 Windscreen and Top Roof Damaged While Lifting the Bin


StonedCZ27MHGP 06 March 2020 Rear Tailgate Damaged, Panel Under Run Bar and Rear Plate


ar 2019-20)95



PIKI/0120/042272/MOR MtshaliDamaged /

StonedDP22FDGP 04 January 2020 Front Portion Was Damaged by The Machine

PIKI/0120/042434/MOR Tp Hit Insured WCH522GP 07 January 2020Wch522gp Stucked In the Mud And 3rd Party Vehicle Reversed into

Pikitup Truck

PIKI/0120/042594/MORStolen &

RecoveredDP22FDGP 29 January 2020 Two Batteries Stolen

PIKI/0120/042597/MOR Mpasi Insured Hit Tp CK48MXGP 31 January 2020Pikitup Vehicle Bumped The 3rd Party Vehicle on The Right-Side Mirror

and Passenger Door

PIKI/0220/043005/MOR Tp Hit Insured HW61CSGP 08 February 2020 3rd Party Vehicle Bumpep Pikitup Vehicle on The Left Side Bumper

PIKI/0220/043032/MOR Ndlovu Insured Hit Tp VJJ211GP 15 February 2020Pkitup Vehicle Rolled to the 3rd Party Vehicle and Push on The Bull Bar

but No Damages Between Them


StonedDP22FDGP 20 February 2020 Front Portion Was Damaged by A Tree Trunk

PIKI/0220/042650/MOR Matumba Collision VGV081GP 05 February 2020

While Vgv081gp Was Waiting to Enter Village Road Along Side A 3rd

Party Vehicle Both Entering into The Left and Collided. 3rd Party Was

Damaged on The Right Door and Right Mirror Broken

PIKI/0320/043625/MOR Insured Hit Tp FF80DRGP 05 March 2020While Technician Was Driving Ff80drgp There Was A Man Hole Which

Cover Was Missing Causing Damage to The Sump

PIKI/0120/042271/MORGlass /

HeadlightsJF63TYGP 08 January 2020 Left Side Mirror Was Damaged by A Person Driving Bicycle


StonedDP22CRGP 21 January 2020 Front Suspension or Tie Rod Arm Got Damaged


CHAPTER SIX

INTERNAL & EXTERNAL AUDIT FINDINGS

98

6. CHAPTER SIX: INTERNAL & EXTERNAL AUDIT FINDINGS

The purpose of this report is to present progress on Internal Audit work against the approved 2019/20 Internal

Audit Coverage Plan for the third (3rd) quarter of 2019/20 financial year. The report further presents progress

made in resolving audit findings raised by Internal Audit and AGSA.

6.1 Year to date Overall Audit Assessment for 2018/19 Financial Year

Quarter Audit

Ref #

Quarter 1 Residual Risk

Rating

IA control Rating Nature of

Audit

Progress Status

Quarter 1 1 Review of annual financial statements prior to

submission to AG (CE). Conducted by Finance

as part of the AFS preparation process.

FA Completed

2 Audit of Pre-determined Objectives Full Audit

including Follow up Audit prior to submission

of performance report to AG (CE).

FA/FUA Completed

3 Follow up on AG and IA Audit Findings FA Completed

Quarter 2 4 Separation at Source Full Audit including

Follow up Audit (AE)

FA/FUA Management

requested that

the audit be

postponed

to 2020-21

financial year.

Approved at

ARC held on

13 January

2020


including Follow up Audit (CE)

FA/FUA Completed

6 100% Employees Count and Verifications

including verification of IDs and proof of

residence and engaging HR to update

the HR database based on the result of

the employees verifications (after 2010

absorption and Jozi at Work in-sourcing

process) (AE)

FA/FUA Completed and

draft report

sent to HR

7 Follow up on AG and IA Audit Findings FA Completed

8 Assessment of cleanliness levels of the inner-

city & outer-city in line with the approved

standards Full Audit (CE)

FA Completed


Quarter Audit

Ref #

Quarter 1 Residual Risk

Rating

IA control Rating Nature of

Audit

Progress Status

Quarter 3 9 Internal Financial Controls Audit (CE) FA/FUA In Progress



FA/FUA In Progress

11 Revenue and Debtors Management Full Audit


FA/FUA In Progress

12 Weighbridge Management Full Audit


FA/FUA In Progress

13 Assessment of cleanliness levels of the inner-

city & outer-city in line with the approved

standards Full Audit (AE)

FA/FUA In progress -

14 Follow up on AG and IA Audit Findings FA Complete to

continue into

Q4

Quarter 4 15 Supply Chain Management (SCM) Full Audit

including Follow up Audit including contract

management and procurement of PPE (AE)

FA/FUA To commence

in Q4


including Follow up Audit (AE)

FA/FUA To commence

in Q4

17 Fleet Management Full Audit including Follow

up Audit including utilization of adhoc fleet

(CE)

FA/FUA To commence

in Q4

18 Health and Safety Full Audit including Follow

up Audit (AE)

FA/FUA To commence

in Q4

19 Human Resource Management Full Audit

including Follow up Audit including Leave

Management and Training and Development;

and Study Grant Debtors (AE)

FA/FUA To commence

in Q4

20 Payroll Management Full Audit including

Follow up Audit including Overtime

Management and Payments (AE)

FA/FUA To commence

in Q4

21 Follow up on AG and IA Audit Findings FA To commence

in Q4

Audit assessment

based on audits

completed to date

Controls are partially adequate. Controls are partially effective.

100

IT audit plan for 2019/20 financial yearQuarter Audit

Ref #Audit Project Name Residual Risk

RatingIA control Rating Nature of Audit Progress Status

Quarter 4 22 IT General Controls Full Audit including Follow-up Audit (CE)

FA/FUA To commence in Q4

23 IT Application Controls Full Audit including Follow-up Audit (CE)

FA/FUA To commence in Q4

Audit assessment based on audits completed to date

No IT audit project planned and conducted in the first quarter

FA: Full Audit; FUA: Follow up Audit; CE: Consulting Engagement; AE: Assurance Engagement

The chart below indicates quarterly progress status as at 25 March 2020.

Figure 1: Quarterly progress to date

Figure 1 above indicates that as at 25 March 2020, we completed 16% of the planned audit projects for the third

quarter.

Percentage year to date

Figure 2 above indicates that as at 31 March 2020, percentage completed year to date is 36%


6.2 Progress on Resolution of Internal Audit Findings

Quarter Audit Projects Total Findings

Resolved (management assertions)

Verified & confirmed by IA

Unresolved % Resolved

IA findings for 2018/19 financial year

Quarter 1

Separation at Source Full Audit including Follow up Audit (CE)

0 0 0 0 0%

100% Employees Count and Verifications including verification of IDs and proof of residence and engaging HR to update the HR database based on the result of the employees verifications (before absorption process)

2 2 2 0 100%

Randburg Depot (FA) (CE) including management and distribution of PPE

16 16 16 0 100%

2010 Absorption Project 0 0 0 0 0%

Jozi at Work In-sourcing Project 0 0 0 0 0%

Sub-total 18 18 18 0 100%

Previous quarter sub-total 18 2 2 16 11%

Quarter 2

Enterprise Risk Management Full Audit including Follow up Audit (AE)

1 1 1 0 100%

Health and Safety Full Audit including Follow up Audit (AE)

11 5 5 6 45%

Fixed Assets Management Full Audit including Follow up Audit (AE)

1 0 0 1 0%

Audit of Pre-determined Objectives Full Audit including Follow up Audit (AE)

7 0 0 7 0%

Waterval Depot (FA) (CE) including management and distribution of PPE (operational audit)

12 10 10 2 83%

Tender Reviews 0 0 0 0 0%

Sub-total 32 16 16 16 50%


Quarter 3

Fleet Management Full Audit including Follow up Audit (CE) including Full Maintenance Lease (FML) (operational audit)

11 0 3 8 27%

Human Resource Management Full Audit including Follow up Audit including Leave Management and Training and Development; and Study Grant Debtors (operational audit)

1 0 1 0 100%

Payroll Management Full Audit including Follow up Audit (AE) including Overtime Management and Payments (finance audit)

11 2 5 6 45%

Audit of Pre-determined Objectives Full Audit including Follow up Audit (AE) (performance audit)

5 0 0 5 0%

Midrand Depot (FA) (CE) including management and distribution of PPE (operational audit)

12 3 3 9 25%

Network Security Full Audit including Follow-up Audit (CE) (vulnerability assessment) (IT audit)

13 0 0 13 0%

Sub-total 53 2 12 41 22%


102

Quarter 4

Supply Chain Management (SCM) Full Audit including Follow up Audit (AE) including procurement of PPE (compliance audit)

6 6 6 0 100%

Sub-total 6 6 6 0 100%


Total number of findings for 2018-2019 financial years as at 25 March 2020

109 10 52 57 48%

Total number of findings for 2018-2019 financial years as at 31 December 2019 (previous quarter)

109 2 2 107 2%

Internal Audit noted 109 audit findings for 2018/19 financial year. Table 7 and 8 indicate that the entity resolved

48% of audit findings noted by Internal Audit for 2018/19 financial year with 52% remaining unresolved.

To improve the adequacy and effectiveness of risk management, control and governance processes, 100%

resolution rate is required. The implementation of corrective actions will assist in obtaining and sustaining a clean

audit. Internal Audit will continuously engage management to ensure that a 100% resolution rate is achieved for

all audit findings. The resolution rate improved from the previous quarter and if this is maintained all the findings

might be acted upon by end of Quarter 4 of 2019/20.

An analysis of internal audit findings for 2018/19 financial years was conducted in order to determine the potential

impact on service delivery and the year-end audit opinion in case they remained unresolved for a longer period.

Table 8 below indicates audit findings that are significant to service delivery and/or audit opinion and those that are

less significant but may become significant if they remain unresolved for a longer period as well as the resolution

status.

Table 8: Analysis of internal audit findings and rating of potential impact on service delivery and year-end audit

opinion

An analysis of internal audit findings for two financial years and rating of the potential impact on service delivery and year-end audit

opinion as at 25 March 2020

Financial year Effects on audit opinion and/or service delivery

Matters that may affect audit

opinion and/or service delivery

(significant)

Other important matters that could

escalate to significant if not addressed

(less significant)

Administrative

matters (less

significant)

Total

2018/19 financial year

Resolved 3 38 11 52 (48%)

Not resolved 12 42 3 57 (52%)

TOTAL 15 80 14 109 (100%)

PERCENTAGE 21% 70% 9% 100%

6.3 Progress on Resolution of External Audit Findings (categorize between findings affecting and not affecting the audit opinion)

Progress of resolving AGSA Audit findings

AGSA raised 189 audit findings for the past five financial years. Figure 3 below shows trend on AGSA audit

findings for the past five financial years and related audit outcome.


Figure 3: Trend on AGSA audit findings

The trend analysis on Figure 3 above shows a significant improvement in the control environment within the entity

in the 2014/15 financial years when the entity achieved a clean audit. The trend took a negative turn in 2015/16

and 2016/17 financial years with the total number of AGSA audit findings increasing by 15 findings (79%) when

compared to 2014/15 financial year. Again, the number of audit findings increased by additional 15 audit findings

(44%) in 2016/17 financial year when compared to 2015/16 financial year. In 2017/18 financial year, the number

of audit findings raised by AGSA decreased by 9 audit findings (18%) when compared to 2016/17 financial year.

For 2018/19 financial year, audit findings raised by AGSA increased by 18% (7) compared to 2017/18 financial

year.

However, these audit findings remain a concern because the nature of audit findings raised are qualitative and

material and if not resolved during the financial year may have a negative impact on the year-end audit outcome.

104

Table 9 below indicates the nature of the audit findings raised by AGSA for the past 2 financial years, related

resolution rate and quarter on quarter comparison.

Table 9: Progress on resolving AGSA audit findings

Area reviewedTotal findings

Resolved (management assertions)

Verified & confirmed by IA

Unresolved% Resolved

AG findings for 2018/19 financial year

Legal 3 2 2 1 67%

Revenue 4 3 3 1 75%

Audit of Predetermined Objectives 11 8 4 7 36%

Supply Chain Management 4 3 2 2 50%

Human Resource Management 4 2 0 4 0%

Finance 16 15 8 8 50%

Information Technology (IT) 0 0 0 0 0%

Operations 1 0 0 1 0%

MD 1 0 0 1 0%

COJ Related 3 3 0 3 0%

Total resolution rate (current quarter) 47 37 19 28 40%

Total resolution rate (previous quarter) 47 0 0 47 0%

AG findings for 2017/18 financial year

Revenue 4 0 3 1 75%

Audit of Predetermined Objectives 11 9 9 2 82%

Supply Chain Management 5 5 5 0 100%

Human Resource Management 3 2 2 1 67%

Finance 16 16 16 0 100%

Information Technology (IT) 0 0 0 0 0%

Operations 1 1 1 0 100%

Total resolution rate (current quarter) 40 33 36 4 90%

Total resolution rate (previous quarter) 40 33 33 7 83%

Table 9 and 10 indicate that on aggregate the entity resolved 40% and 90% of audit findings noted by AGSA for

2018/19 and 2017/18 financial years respectively. Resolution rate for 2018/19 financial year is 40% because we

started engaging management on resolution of these audit findings during Quarter 3. On aggregate the resolution

rate for the past two financial years is 63%. Management should ensure quick submission of requested evidence

where the finding is indicated as resolved. The 2018/19 AGSA finding resolution rate will increase significantly

based on management’s action plan that indicates 37 of the 47 findings being resolved.

Table 10: Trend on audit findings issued by AGSA and resolution rate

Financial Year 2018/19 2017/18 Total

Total Findings 47 40 87

Decrease/ (increase) (7) (9) (7)

(% increase) (18%) (18%) (18%)

Resolution 19 36 55

Resolution Rate 40% 90% 63%

Unresolved Findings 28 4 32

% Unresolved Findings 60% 10% 62%


An analysis of unresolved audit findings showed that Finance and AOPO are major contributors to unresolved

audit findings at 41% and 24% respectively. Revenue contributes 15% whilst others contributed 20%. Note that

HR audit findings are less significant because they are administrative in nature whilst finance, revenue, SCM and

AOPO audit findings are significant and majority have impact on the audit opinion. Internal Audit will continuously

engages these respective departments to ensure 100% resolutions of audit findings. Figure 4 below indicates

contributors to unresolved audit findings raised by AGSA.

Figure 4: Total AGSA unresolved audit findings per department.

An analysis of AGSA audit findings for the past two financial years and potential impact on the year-end audit

opinion was conducted. The analysis shows that 38% of audit findings noted in the previous two financial years

are significant findings that may have an impact on the audit opinion whilst 59% are less significant but may

become significant if remained unresolved for a longer period. Administrative findings contributed 3% to the total

findings. Of these 87 audit findings, 63% were resolved whilst 37% remained unresolved as at 25 March 2020.

Table 11 below indicates the number of audit findings which affected the audit opinion in the previous two year-

end audits, other important matters and administrative matters.

1 2

9

25

8

1 13

32

0

5

10

15

20

25

30

35

Legal Revenue AOPO SCM HR Finance Opera�ons MD COJ Related TotalUnresolved

106

Table 11: An analysis of AGSA audit findings for two financial years and potential impact rating on the year-end audit

opinion

Status of AGSA findingsMatters affecting audit

opinion

Other important

matters

Administrative

mattersTotal


Resolved 3 (33%) 16 (42%) 0 (0%) 19 (40%)

Not resolved 6 (67%) 22 (58%) 0 (0%) 47 (60%)

Sub-total 9 (100%) 38 (100%) 0

(100%) 47 (100%)

Percentage 19% 81% 0% 100%


Resolved 22 (92%) 12 (92%) 2

(67%) 36 (90%)

Not resolved 2 (8%) 1 (8%) 1

(33%) 4 (17%)

Sub-total 24 (100%) 13 (100%) 3

(100%) 40 (100%)

Percentage 60% 33% 7% 100%

Total for 2018/19, and 2017/18 financial years

Resolved 25 (76%) 28 (55%) 2 (67%) 55 (63%)

Not resolved 8 (24%) 23 (78%) 1 (33%) 32 (37%)

TOTAL FINDINGS 33 (100%) 51 (100%) 3

(100%) 87 (100%)

Percentage 38% 59% 3% 100%

Table 12 below indicates the impact the audit finding will have on the year-end audit if it recurs.

Descriptors Ratings Definitions

Insignificant 1 Immaterial impact on year end audit and business as a whole.

Moderate 3 Negative outcomes/observations that may have a moderate effect on the year-end audit and business

unit’s performance and objectives.

Major 4 Negative outcomes/observations with major effect on the year-end audit and business unit’s

performance & objectives

Severe 5 Negative outcomes/observations with a severe effect on the year-end audit and business unit’s

performance and objectives


7. TENDER REVIEWS

Table 13 below indicates tender reviews conducted by Internal Audit and progress report as at 25 March 2020

Table 13: Tender reviews progress report as at 25 March 2020

# Tender Description Tender number Status Update Probity Audit Findings

1 Appointment of a Contractor for

Construction of New Hall, Ablution

Facilities, Upgrading of Wash Bay,

Alteration of Existing Storeroom,

Refurbishment of Existing Office,

Rehabilitation of Access Roads and

Parking Area at Avalon Depot

PU053/2018 Probity audit

completed and report

submitted to the

Acting MD.

No instance of non-

compliance with relevant

procurement laws and

regulations, Pikitup policies

and procedures noted during

the probity audit.

2 Appointment of a contractor(s) for

demolition and removal of existing

asbestos building, construction of new

administration office, 450-seater hall,

wash-bay, heavy duty parking area,

male and female ablution facilities,

rehabilitation of existing storeroom and

guardhouse at Central Camp



submitted to the

Acting MD.

No instance of non-

compliance with relevant




the probity audit.

3 Appointment of a contractor(s) for the

construction of 450-seater hall, heavy

duty parking area, refurbishment of

existing offices and ablution facilities at

Marlboro Depot



submitted to the

Acting MD.

No instance of

noncompliance with relevant




the probity audit

4 Probity audit of all for the appointment of

a bidder/s to provide, and maintain plant

and equipment at Panorama, Ballyclare,

Woodmead, Victory Park, Melrose

And Fairlands Garden Sites for PIKITUP

Johannesburg SOC (Pty) Limited over a

period of 12 months

PU051/2017 Completed and

recommended

cancellation. None

of the submitted

bidder met 70 points

threshold and BEC

recommended Bid

Cancellation to BAC.

No

No instance of





the probity audit.

108


5 Appointment of panel of service

providers for the removal, cleaning

and rehabilitation and/or eradication

of illegally dumped non-toxic, no

objectionable solid waste and rubble

on as and when required basis with

effect from date of appointment for

thirty-six (36) months period for PIKITUP

Johannesburg SOC (Pty) Limited

PU047-2017 BAC to sit on

Monday 1 July 2019

and recommended

approval to the acting

MD

Non-alignment of Policy with

PPPFFA (2017) Regulations.

The tender document stated

incorrect point for BBBEE 3;

indicating BBBEE points as 8

points instead of 6 points for

80/20 and 90/10 preference

system respectively.

During the evaluation the

BEC was guided to apply

the correct points, 6 points

for BBBEE level 3 in line with

PPPFA, 2017.

6 Appointment of a Contractor for Phase

1 Construction of a New Administration

Building (Offices), Hall, Medical Facility,

Fence, Guard House, Wash Bays, Parking

Area, Male and Female Ablution Facilities

at Midrand Depot (Rabieridge Extension

1)

PU070/2018 BSC Report was issued

to management on 2

September 2019

Tender review still in

progress

The retrospective probity

picked out that the

BBBEE level 3 points were

incorrectly stated as 8

points instead of 6 points as

directed by PPPFA, 2017.

The probity audit was

performed before the

placement of the RFP

adverts and corrections were

implemented prior to the

placement of the advert.

The RFP advertised captured

correct BBBEE pricing point

aligned to the PPPFA, 2017.

The tender was cancelled

at evaluation stage due to

incorrect calculation of bills

of quantities.

Refer to #7 below for the

new request for tender

review

7 Appointment of a contractor for phase

1 construction of a new administration

building (offices), hall, medical facility,

washbays. Stormwater, carports, civil

services, perimeter fence, guard house,

wash bays, parking area, male and

female ablution facilities at Midrand

depot Nature of expenditure: CAPEX

PU081/2019 Planning stage New request for tender

review was made by SCM

on 23 December 2019. The

tender review is currently on

the planning stage.



8 Appointment of panel (framework

contracts) of consulting engineers for

various civil and building infrastructure

development related projects for Pikitup

(Soc) limited, on an as and when required

basis for a period of three years (36

months)


to management on 10

December 2019


progress

No instance of





the probity audit at bid

specification stage

9 Appointment of a panel of service

providers for provision of internal audit

services on an as and when required basis

for the period of 26 months.

PU072/2019 Tender finalised and

appointments done.

March 2020

No instance of





the probity audit. There were

housekeeping findings which

were noted by management.

10 Appointment of a contractor for

construction and commissioning of

vehicle workshop, 450 seater hall, wash

bay and storm water management

systems at Waterval Depot.


to management on 18

December 2019


progress.

Instance of non-compliance

with relevant procurement

laws and regulations,

Pikitup policies and

procedures were noted

during the probity audit.

Internal Audit is currently

engaging management on

resolving these findings

prior proceeding with the

tender and sign-off of

specifications.

11 Appointment of a supplier for the supply

and delivery of Bin Liners for a period of

36 months.


to management on 18

December 2019


progress

Internal Audit is currently

engaging management

on audit findings prior

finalization of the report.

12 Appointment of a service provider for the

supply and operation of fully functional

landfill plant and equipment at Robinson

Deep, Marie Louise, Goudkoppies and

Ennerdale landfill sites on a rental basis

for a period of 36 months.

PU080/2019 BSC Phase complete.

Currently at

Advertising Stage

One matter on the

subcontracting raised and

resolved with the Internal

Auditors

110

8. ADHOC REQUESTS

The following indicates the adhoc requests audits to be performed by the Internal Audit. These are performed in

house

Table 14 – Adhoc Audits

# Description Task Audit Findings

1 Landfill Plant and Equipment probity for

the Interim Measure while tender process

is unfolding

Evaluation of the process and scoring of

points for the preferred supplier

No non-compliance identified on the

deviation evaluation

2 Pikitup Truck Audits Audit of the number of trucks per Depot,

number being repaired and those idling

during operational hours

In-progress

3 Performance Management System Verification of the performance

bonus scores and the accuracy of the

performance bonus calculation

Review of the Pikitup performance system

Calculation of scores & expected

performance bonus complete.

Review of the system in progress

9. INVESTIGATIONS

Internal Audit is currently conducting investigation for unauthorised, irregular, fruitless and wasteful (UIFW)

expenditure. The new Terms of Reference on UIFW which is currently at finalisation stage require that Internal

Audit to conduct preliminary investigations on all UIFW. If preliminary investigation indicates any red flags for fraud

and corruption, the case will be referred to Group Forensic Investigation Services (GFIS) for further investigation

after approval for such investigation have been obtained from Municipal Public Accounts Committee.

The Recently appointed panel will be used to conduct some of the investigations. This will assist in increasing the

coverage. These projects will commence in Quarter 4 of 2019/20.


________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

_______________________________________________________________________________________________

_______________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

112

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

_______________________________________________________________________________________________

_______________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

Pikitup Head OfficeBraamfontein66 Jorrisen Street10th Floor Jorrisen Place

Private Bag X 74 Braamfontein 2017

Tel +27 (0)11 712 5200www.pikitup.co.za

table of contents › wp-content › uploads › 2020 › 07 › 20.3... · pikitup third quarter...

Documents