Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698927132674.pdf (South Africa)
COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS “Presentation to the NCOP Three Sphere Planning Session” 09 June 2023 OUTLINE OF THE PRESENTATION Purpose Background and Context High Level Municipal Performance along B2BPillars Progress on the implementation of infrastructure projects Support Packages that are being implemented to address municipal challenges 2 PURPOSE The purpose of this presentation is to provide the high-level State of Gauteng Municipalities based on the Back-to-Basics approach.
Furthermore, the presentation will provide details progress on the implementation of infrastructure projects.

3 BACKGROUND AND CONTEXT COGTA VISION, MISSION AND OUTCOMES • 0 VISION MISSION IMPACT 4 OUTCOMES Sustainable , Smart, Inclusive Cities and Communitie s in the Gauteng City Region.

To drive an effective system of cooperative governance to build sustainable municipalities, inclusive communities and the institution of Traditional Leadership in the Gauteng City Region.
Improved municipal performance in line with B2B pillars Resilient and Sustainable Communities Through Service Delivery Safe, spatially integrated cities and communities with inclusive growth Effective Systems of Cooperative Governance Strengthened institution of Traditional Leadership CoGTA VISION , MISSION AND OUTCOMES (Cont..) VISION MISSION IMPACT 4 OUTCOMES Sustainable, Smart, Inclusive Cities and Communities in the Gauteng City Region.
To drive an effective system of cooperative governance to build sustainable municipalities, inclusive communities and the institution of Traditional Leadership in the Gauteng City Region.
Improved municipal performance in line with B2B pillars Safe, spatially integrated cities and communities with inclusive growth Effective Systems of Cooperative Governance Resilient and Sustainable Communities Through Service Delivery Strengthened institution of Traditional Leadership DEPARTMENTAL MANDATE The Department of CoGTA derives its mandate from the Constitution of the Republic of South Africa, 1996: ▪ Section 139: provides that the Provincial Executive may intervene if a municipality fails to fulfil an executive obligation.
▪ Section 152: provides for democratic and accountable government for local communities ▪ Section 154: provides for support and strengthening the capacity of municipalities to manage their own affairs, exercise their powers, and perform their functions.

▪ Chapter 12: provides for the recognition of the institution of traditional leadership.
▪ The Department’s mandate is further articulated in other pieces of secondary legislation and policy documents, which include the following: White Paper on Local Government, 1998 Municipal Systems Act 32 of 2000 Local Government Structures Act 117 of 1998 Municipal Finance Management Act, 2003 Intergovernment al Relations Framework Act 13 of 2005 Traditional Leadership and Governance Framework Act No.

41 of 2003 Municipal Property Rates Act (No.

6 of 2004) Disaster Management Act (No.


57 of 2002) Municipal Demarcation Act (No.
27 of 1998) RSA Constitution (1996) & White Paper on Developmental Local Government (1998) Constitution (1996) (S152) The objects of local government are: a) to provide democratic and accountable government for local communities; b) to ensure the provision of services to communities in a sustainable manner; c) to promote development; social and economic d) to promote a safe and healthy environment; and e) to encourage the involvement of communities and community organisations in the matters of local government.
Outcomes ◼ Provision of household infrastructure & services ◼ Creation of livable, integrated cities, towns and rural areas ◼ LED ◼ Empowered communities RDP & White Paper: LG provision of services as economic driver.
“The 1st priority is meeting basic needs of people, jobs, land, housing, water, electricity, telecoms, transport, clean & healthy environment, nutrition, healthcare and social welfare” RDP Section 152 Provide democratic & accountable government for local communities • Services provision in sustainable manner • Promote social & economic development • Promote safe & healthy environment • Encourage involvement of communities Section 153 Developmental duties of municipalities • Administer, budget & plan: priority to basic needs • Promote social & economic development of community • Participate in national and provincial development programmes Section 154 The national government and provincial governments, by legislative and other measures, must support and strengthen the capacity of municipalities to manage their own affairs, to exercise their powers and to perform their functions.
Constitution: LG center of governance & promotes Integrated Development Planning 9 DDM :WHAT PROBLEMS ARE TRYING TO SOLVE?
Planning & budgeting Weak sector dept involvement in IDPs No real long-term approach Poor integration Need for shift from alignment Lack of coherence Poor inter-sphere collaboration Deficient strategic focus of plans IGR mechanisms not optimally utilised No real joint planning Implementation across govt GDS & SDF not having broad buy-in Limited localisation of NDP & MTSF No coherent performance mgt Fragmented plans across govt Poor service delivery & Development impact REGIONAL SUPPORT MODEL & OTHER INTERVENTIONS The Department of CoGTA is implementing Regional model anchored deployment of the Regional Support Team and Implementation of the Regional Support Plan along Back to Basics pillars .
West Rand DM Merafong LM Emfuleni LM • s139(5) (a) of the Constitution and 139 of the MFMA remain active as mode of intervention for West Rand DM.

• Premier announced intervention to broaden the scope of intervention in Merafong in terms of Disaster Management Act.

• While the Executive Council discontinued the intervention in terms of s139 of the Constitution, the intervention in terms of Section 68 of Water Services Act remain in place for Emfuleni LM.
11 BACK TO BASIC APPROACH • • The Department continue to provide assessment of the state of the local government based on the Back to Basics approach , including National Treasury MFMA Circular 71.
The below categorisation and performance indicators aligned to five B2B pillars are used to assess municipal performance: 12 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG B2B PILLARS HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS POLITICAL • Rise in Municipal Coalition Government Municipalities City of Ekurhuleni City of Johannesburg City of Tshwane Emfuleni Lesedi Merafong LM Mogale City Rand West LM Sedibeng DM WRDM Coalition Partners ANC, EFF, AIC and PA ANC,PA, Al Jamah, COPE,EFF(voting) DA, FF, Action SA, COPE,ACDP and IFP ANC and New Horizon Movement ANC and Socialist Economic Freedom Movement ANC and MAOC ANC, EFF and ATM ANC, PA,AIC and RPP ANC.
PAC and Solidarity DA, EFF(voting) Governance – Frequent change of functionaries, decision making, reporting and accountability Administration – Uncertainty of management positions, interference in admin, appointment of staff and SCM Service Delivery – Adoption of budgets, change of priorities, decision making that impact implementation of projects 14 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) Municipality Number of Wards Number of Wards established Number of Wards Inducted GOVERANCE • Ward Committee establishment and Induction as of March 2023 City of Johannesburg City of Tshwane Ekurhuleni Metro Emfuleni LM Lesedi LM Midvaal LM Mogale City LM Rand West City LM Merafong LM Total • • In terms of the Local Government: Municipal Structures Amendment Act, 2021 amended section 73: A metropolitan or Local council must establish a ward committee for each ward in the municipality within 120 days after the election of the municipal council.
All municipalities have complied with the requirement by establishing ward committees except Tshwane Metro which is in the process of establishing.

The delay in COT is due to the prolonged public participation it undertook to approve, promulgate and gazette the By-Law on WC establishment.

15 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) GOVERNANCE • Establishment and Procedural functionality of MPACs • All municipalities established the MPACs.
However, only 5 MPACs function within the Council approved MPAC plan, and only 6 have Council approved MPAC Terms of Reference.

• 7 (64%) municipalities complied with the timeous adoption of the 2021/22 Oversight Reports (OR) by 31 March 2023.

• CoT MM and MogCLM have not adopted the 2021/22 OR due to disruptions & adjournments of council sittings, whereas ELM adopted their OR late due to the same reason.

CoJ MM adopted the OR late due to the departure of MPAC chairperson.
16 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) GOVERNANCE • Tabling of 2023/24 Municipal Budget in Council • The 2023/24 draft budgets must be tabled to Council by 31 March each year i.t.o Section 16(2) of the MFMA.

• Only 9 municipalities have tabled their draft budgets in compliance with Section 16 (2) of the MFMA and Regulation 14 of the MBRR.
• City of Tshwane: An extension to 14 April 2023 was granted by the MEC for Finance for the approval of the City’s 2022/23 main adjustment budget as well as the 2023/24 draft budget.

However, the council only considered the draft budget.

The 2022/23 adjustments budget was finally approved on 26 April 2023.
• Mogale City LM: The 2022/23 adjustment budget and the 2023/24 draft budget were approved late on 20 April 2023 due to instabilities in Council 17 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) GOVERNANCE • Compliance with Section 166 i.t.o functionality of Audit Committee 18 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) Financial Management Operating Revenue and Expenditure • For the period ending April 2023, municipalities should have recorded performance of at least 83% using the straight-line projections assuming equal expenditure and revenue performance for each month against their operating and capital budgets.
• The 2022/23 operating expenditure adjusted budgets for WRDM, MogCLM, SDM, MLM and LLM exceed their operating revenue budgets, thus recording deficit budgets.

• RWCLM is the only municipality that reported an operating deficit between revenue and expenditure for the period under review.

The deficit can be attributed to excessive spending against the operating budget, indicating the need to institute cost containment measures or budget controls.
• Note: April ‘23 information is not available for CoT MM, March 2023 figures were used in this instance.

19 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) Financial Management Cash Management • The aggregated closing balance as at April 2023 was positive, at R3.8 billion.

The CoT MM’s cash balance has shown a drastic increase, although the money is held in investments and a significant portion constitutes unspent conditional grants.
• Overall, municipalities recorded a decrease in net cash movement of R2.4 billion between June 2022 and April 2023.

Five (5) in total recorded negative cash movements over the period under review, with the largest decreases recorded by CoJ MM and CoEMM.

• Two (2) municipalities, MerCLM and ELM, closed off April 2023 with negative cash balances.

• Note: April ‘23 information is not available for CoT MM, March 2023 figures were used in this instance.
20 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) Financial Management Debtors Age Analysis • The total outstanding debtors owed to municipalities amounted to R115.08 billion, showing an increase compared to R115.05 billion owed as at 31 March 2023.

• The bulk of the total outstanding debtors are in the “Over 90 days”, at 86% or R99.9 billion as at April 2023 compared to 87% or R99.5 billion for end March 2023.
• Note: April ‘23 information is not available for CoT MM, March 2023 figures were used in this instance 21 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) Financial Management Failure to make any other payment >2% of the budgeted operating expenditure (s140(2)(c)) ESKOM • • • • • • The total outstanding amount owed to Eskom by Gauteng municipalities decreased by (2%) from R12.9 billion reported at the end of March 2023 to R12.7 billion for April 2023.
Although Mogale City LM’s account shows an 18% increase.

Emfuleni LM has the highest debt compared to other municipalities in the province, which constitutes 51% (R6.5 billion) of the total debt owed to Eskom in the province, and the interest portion is at R1.3 billion.

Eskom had taken the municipality to court for outstanding overdue payments.

City of Tshwane MM has the second highest ESKOM debt at R1.8 billion, showing a decrease of 10% compared to R2 billion reported at the end March 2023.
Merafong City LM meets on a weekly basis with Eskom, GPT and GCoGTA to discuss the outstanding debt.

The debt has decreased by 2% from R685 million for March 2023 to R673 million for April 2023.

Eskom had taken Rand West City LM to court for outstanding overdue payments on their electricity bulk purchases.

The court has ruled to attach the municipality’s bank account.

The amounts decreased by just 1% from R936 million as at March 2023 to R931 million at the end of April 2023.
RWCLM was the first municipality in the country to apply for municipal debt relief and is awaiting feedback from the National Treasury.

The remaining municipalities committed to submitting applications by May 2023.

The highest decreases are in CoJ MM and CoT MM at 10% and Midvaal LM at 12%.
22 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) Financial Management Failure to make any other payment >2% of the budgeted operating expenditure (s140(2)(c)) Rand Water • • • • • The Rand Water (RW) account decreased by 2.5% from R3.9 billion as at 28 February 2022 to R3.8 billion at the end of March 2023.

Total interest on outstanding debt amounts to at least R15.9 million.
Emfuleni LM (ELM) owed the highest debt compared to other municipalities at R888.1 million, the debt slightly decreased by 2.5% as at March 2023.

ELM had a 36 months Debt Settlement Arrangement (DSA) with Rand Water which they defaulted on.

Rand Water applied to court for a writ of execution and attached all bank accounts.

However, the writ has since been lifted.

City of Ekurhuleni MM’s debt is the second highest followed by City of Johannesburg MM at R837.1 million and R767.2 million, respectively.
CoEMM requested RW for a 60%-40% payment period extension relief arrangement on their current account.

However, RW indicated that the City must settle all the outstanding amounts before considering their request.

Merafong City LM has a 36 months payment arrangement but is not honouring the payment arrangement and was served with a notice of late payment letter.

The municipality has pleaded with RW for a new affordable repayment plan for 72 months.
The process has been delayed due to changes in the position of Municipal Manager.

Rand West City LM proposed a new DSA and committed their equitable shares to settle old debt and service their current account monthly.

RW has signed the DSA & awaiting the municipal officials to sign.
23 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) Financial Management Capital Expenditure 24 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) Financial Management Final Decisions from National Treasury on Stoppings and Additional Funding • National Treasury sent letters to all affected municipalities on 20 February 2023 informing them of its intention to stop the above- mentioned allocations in terms of section 18 of the 2022 DoRA and section 38 of the MFMA.
• The proposed amount was R 1.4 billion, however R 339.9 million was stopped and additional funding of R 294 million was allocated.
25 MunicipalitiesGrantsAmount StoppedAdditioanl Funding/Adjusted AllocationPublic Transport Network Grant -R115 800 000R0Urban Settlement Development GrantR0R200 000 000Neighbourhood Development Partnership Grant -R18 928 000R0Urban Settlement Development -R100 000 000R0Neighbourhood Development R0R49 706 000Municipal Infrastructure Grant-R40 000 000R0Regional Bulk InfrastructureR0R15 341 000Integrated National Electrification Programme Grant-R23 743 000R0LESEDIWater Services Infrastructure -R5 000 000R0Integrated Urban Development Grant-R12 130 000R0Neighbourhood Development R0R28 711 000Municipal Infrastructure Grant-R10 000 000R0Water Services Infrastructure -R5 000 000R0Water Services Infrastructure -R9 340 000R0Neighbourhood Development R0R1 000 000TOTAL-R339 941 000R294 758 000RANDWESTELMMOGALEMERAFONGCOECOJ HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) Financial Management • UIFW Expenditure • The table above shows comparisons of the total audited UIFW expenditure for 2019/20, 2020/21 and 2021/22 FYs.
CoEMM is the only municipality that showed a downward trend, while the other 10 municipalities showed an upward trend between the financial years.

• CoJ MM had the highest balances of UIFW expenditure as at 2021/22 FY, followed by CoT MM.

ELM is the highest among the local municipalities, followed by RWCLM.

The table shows that municipalities are not effectively addressing the UIFW expenditure in terms of Section 32 of the MFMA.
• 26 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) Financial Management • Audit Outcomes • City of Ekurhuleni MM and Midvaal LM sustained their clean audit • outcomes in the 2021/22 audit.

Improvement in the Rand West City LM with movement from a qualified audit opinion to an unqualified audit outcome.

• 5 municipalities obtained an unqualified audit opinion, with regressions noted at City of Tshwane MM, Merafong City LM, Emfuleni LM and Mogale City.
• City of Tshwane MM regressed to an adverse opinion as their AFS did not fairly present, in all material respects, the financial position, performance and cashflows of the city.

• Merafong City LM AFS were not credible enough for AGSA to give an opinion, thus the municipality was issued a disclaimer.

• Emfuleni LM had material misstatements, which the municipality was unable to correct due to outstanding supporting documentation.
• Mogale City LM qualification is due to material misstatements in property, plant and equipment, cash flow statements and irregular expenditure.
• Recurring findings across municipalities on non-compliance with laws and regulations include: ❖ Procurement and contract management; ❖ Consequence management; ❖ Asset Management; and ❖ Expenditure management (UIF&W expenditure and 30 day payment 27 MunicipalityAudit opinion 2019/20Audit opinion 2020/21Audit opinion 2021/22City of Johannesburg MMUnqualifiedUnqualifiedUnqualifiedCity of Ekurhuleni MMCleanCleanCleanCity of Tshwane MMUnqualifiedUnqualifiedAdverseWest Rand DMUnqualifiedUnqualifiedUnqualifiedRand West City LM QualifiedQualifiedUnqualifiedMerafong City LM UnqualifiedAdverseDisclaimerMogale City LMUnqualifiedUnqualifiedQualifiedSedibeng DMUnqualifiedUnqualifiedUnqualifiedEmfuleni LMQualifiedUnqualifiedQualifiedMidvaal LMCleanCleanCleanLesedi LMUnqualifiedUnqualifiedUnqualified Audit Outcomes for 2021/22 financial year compared with 2020/21 & 2019/20 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) Financial Management • Implementation of the Audit Action Plans • • As of 31 March 2023, the overall progress of the implementation of the 2021/22 audit action plans was at 26% of resolved action plans, and these resolved issues have been reviewed and confirmed by internal audits in municipalities.
It was noted that 53% of the issues are still being addressed by municipalities, and close monitoring is done through Operation Clean Audit (OPCA) steering meetings in municipalities.

Internal audit and audit committees play a vital role as assurance providers in monitoring these action plans, as OPCA is a standing agenda item in all audit committee meetings in Gauteng municipalities.

• City of Tshwane MM and Emfuleni LM have reported slow implementation of action plans in the quarter under review.
This was due to the late finalisation of the audit, and subsequently, the formulation of the action plan was affected.

• Budget constraints, vacancies in key positions, inadequate time to resolve findings, and a lack of leadership are some of the factors that impede the speedy resolution of these action plans.

• Unresolved issues pose a risk of reoccurring in the 2022/23 audit due to the non-implementation or slow implementation of audit action plans by management.
28 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) Municipality Status on appointment of municipal senior managers in Gauteng municipalities as at May 2023 Total no.
of SM posts Total Filled Total Vacancy # (%) City of Joburg City of Tshwane Ekurhuleni MM Total Metros Sedibeng DM Lesedi LM Emfuleni LM Midvaal LM Total Sedibeng West Rand DM Merafong City LM Mogale City LM Rand West City Total WRDM Grand Total Administration • Filling of Seniors Managers positions • Out of a total of 114 approved positions 70 positions are currently filled and 44 positions remain vacant as at May 2023 • City of Tshwane, Sedibeng DM, Lesedi LM, Emfuleni LM and Merafong City LM currently have the highest vacancies.
• Processes are currently underway in the above municipalities to fill vacant senior management positions.
29 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) Administration • Appointment of City Managers and Municipal Managers MUNICIPALITY City of Johannesburg City of Tshwane Ekurhuleni MM Sedibeng DM Lesedi LM Emfuleni LM Midvaal LM West Rand DM Merafong LM Mogale City LM Rand West City LM STATUS Appointed Appointed Appointed Appointed Appointed Vacant Appointed Appointed Appointed Appointed Appointed • MM positions are critical as they affect stability of municipalities.
• Merafong City LM concluded appointment processes for the position of Municipal Manager.

The recommended candidate commenced duties on the 3rd May 2023.

• Emfuleni LM position of Municipal Manager remain vacant.
30 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) Administration • Compliance with Section 165 i.t.o functionality of Internal Audit Units 31 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) Service Delivery • Water and Electricity Losses • • Both Emfuleni LM and Merafong LM experienced high water and electricity as at end of quarter3.
High water and electricity losses due to ageing infrastructure and non/slow implementation of water and electricity loss strategies.
32 City of Joburg MM23.29%Ekurhuleni MM37.82%16.22%Lesedi LM24%13.67%Emfuleni LM62%66%Midvaal LM32%12%Merafong City LM49.5%50.51%Mogale City LM20%9.45%Rand West City LM28%23%MunicipalityWater Losses (3rd Quarter) Electricity Losses (3rd Quarter) HIGH LEVEL UPDATE ON THE IMPLEMENTATION OF THE INFRASTRUCTURES PROJECTS HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) The detail report on the Implementation of the infrastructure projects is provided as annexure to this presentation.
The report provides detail information ( including project location, status, timelines and budget allocation) in the following areas: Service Delivery 34 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) Water Supply: Provide a targeted break down based on the 39% of the budget committed to Water Project in the province, across all nine provinces, including the municipal location, current status of projects and envisaged completion timelines, Municipality Water Supply Total No.
Status Completion Time Frame Ekurhuleni Metro CoJ Metro 37 40 Service Delivery • Implementati on of projects funded through Municipal Infrastructure Grant 19 – Construction Stage 12 – Planning stage 6 – Procurement (PO stage) Completion period ranges between 2023/24- 2024/25 FY 12 – Construction 10 - Procurement 2 - Planning 3 - Design 2 - feasibility 1 - Litigation Completion period ranges between 2023/24- 2025/26 FY Tshwane Metro 12 9 – Procurement (PO stage) 3 – Construction stage Completion period ranges between 2023/24- 2025/26 FY 35 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) Water Supply: Provide a targeted break down based on the 39% of the budget committed to in the province, across all nine provinces, including the municipal location, current status of projects and envisaged completion timelines, Municipality Water Supply Total No.
Status Completion Time Frame Service Delivery • Implementation of projects funded through Municipal Infrastructure Grant Emfuleni LM Midvaal LM Merafong LM Rand West LM Lesedi LM Mogale City 2 4 4 4 2 – Design Completion [June- September 2024] 2- Construction 2- Complete 1- Design stage 3- Construction 1- Procurement 3- Construction Completion in 2025 Completion [June 2023- June 2024] Completion [June 2024-2025] Only WSIG funded projects in implementation but suspended due to vandalism No Projects in Implementation this Financial year 36 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) Sanitation Services: Provide a targeted break down of the 19% of the budget committed to Sanitation Projects, across the province, including their municipal location, current status of projects and envisaged completion timelines Municipality Water Supply Total No.
Status Completion Time Frame Service Delivery Ekurhuleni Metro • Implementation of projects funded through Municipal Infrastructure Grant CoJ Metro 19 16 9 – Construction Stage 8 – Planning stage 2 – Procurement (PO stage) Completion period ranges between 2023/24- 2024/25 FY 5 – Construction 5 - Procurement 3 - Planning 1 - Design 2 - feasibility Completion period ranges between 2023/24- 2024/25 FY Tshwane Metro 34 9 – Procurement (PO stage) 18– Construction stage Completion period ranges between 2023/24- 2024/25 FY 8- Procurement 2 - Planning 4 - Design 2- Completion 37 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) Sanitation Services: Provide a targeted break down of the 19% of the budget committed to Sanitation Projects, across the province, including their municipal location, current status of projects and envisaged completion timelines,, Municipality Water Supply Total No.
Status Completion Time Frame Service Delivery Emfuleni LM • Implementation of projects funded through Municipal Infrastructure Grant Midvaal LM Merafong LM Rand West LM Lesedi LM 6 1 5 8 1 5 – Construction 1 - Procurement 1 – Construction 4 – Construction 1 - Suspended 6 – Construction 2 - Procurement Completion25/06/2024 May- June 2024 6 projects in 2023/24 1 in 2024/25 1 in 2025/26 Complete 2023/24 38 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS Status & Condition of Roads: Conditions assessment for all categories of Infrastructure , roads being one of them is undertaken through a rigorous Infrastructure Condition Assessment.
Below is the state of roads in municipalities, not all municipalities have undertaken an assessment on their roads Infrastructure hence the incomplete detail below.
Service Delivery • Current status and Condition of roads across the province 39 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) Roads Services: Provide a targeted break down of the 28% of the budget committed to Roads Projects, across the province, including their municipal location, current status of projects and envisaged completion timelines, Municipality Water Supply Total No.
Status Completion Time Frame Service Delivery Ekurhuleni Metro • Implementation of projects funded through Municipal Infrastructure Grant CoJ Metro 86 49 Tshwane Metro 21 69 – Construction Stage 6 – Planning stage 5 – Maintenance & Support 26– Construction 10 - Procurement 5 - Planning 6 - Design 1 – Procurement 9 - Construction stage 7 - Design 3 - Completion Completion period ranges between 2023/24- 2024/25 FY Completion period ranges between 2023/24- 2024/25 FY Completion period ranges between 2023/24- 2024/25 FY 40 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) Roads Services: Provide a targeted break down of the 28% of the budget committed to Roads Projects, across the province, including their municipal location, current status of projects and envisaged completion timelines, Municipality Water Supply Total No.
Status Completion Time Frame Service Delivery • Implementation of projects funded through Municipal Infrastructure Grant Emfuleni LM Midvaal LM Merafong LM Rand West LM Lesedi LM 3 2 4 4 5 2 – Construction 1 - Design 1 – Construction 1 - Design Completion 25/06/2024 Completion 2023/2024 - 2025 4 – Construction May- June 2024- 2025 4 – Construction Completion 2023/24- 2024/25 1 - Complete 4 - Construction Completion 2023/24 41 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) Other Important Priorities: Provide a targeted break down of the 14% of the budget committed to other important priorities such as community facilities and solid waste management facilities in the province, Municipality Water Supply Total No.
Status Completion Time Frame Service Delivery • Implementation of projects funded through Municipal Infrastructure Grant Ekurhuleni Metro CoJ Metro Tshwane Metro 8 7 3 8 – Construction Stage Completion 2023/24 FY 4 – Construction 1 - Complete 2 - Planning 1 – Procurement 1 - Construction stage 1 - Design 1 - Planning Completion 2023/24 FY Completion period ranges between 2023/24 FY 42 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) Other Important Priorities: Provide a targeted break down of the 14% of the budget committed to other important priorities such as community facilities and solid waste management facilities in the province, Municipality Water Supply Total No.
Status Completion Time Frame Service Delivery Implementation • of projects funded through Municipal Infrastructure Grant Emfuleni LM Midvaal LM Lesedi LM 6 7 5 4 – Construction 2 -Procurement 2 – Completed 4 - Construction 1- Design 2 - Design 2 – Completed 1 - Construction Completion 2023/2024 Completion 2023/2024 Completion 2023/24 43 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) Assisting Ailing Municipalities with the Distribution of Electricity: Highlight priority plans in place through partnership with Eskom, SALGA and MISA to expedite the implementation of course corrective measures to assist ailing municipalities with electricity distribution and revenue enhancement – Key Partners of the Department SUPPORTING ENTITY SUPPORT INITIATIVE DESCRIPTION OF INITIATIVE ESKOM SALGA Service Delivery • Implementation of projects funded through Municipal Infrastructure Grant Municipal debt relief Eskom debt write-off for municipalities, interest and penalties under strict conditions with the National Treasury’s guidance Small Scale Embedded Generation (SSEG) development programme training Cost of Supply (COS) studies training The training programme covers the following: -Overview & design of SSEG tariff, Developing necessary forms and documentation (Applications forms, ‘Requirements’ documents etc.
),SSEG policy development & -By-law amendment to accommodate SSEG etc.

Provide an overview of support tools- simplified COS tool and COS submission report template; -Clarify the NERSA COS requirements for tariff application.

-Provide etc.
guidance COS steps and the support (tools and resources) available to municipalities to fulfil these requirements 44 HIGH LEVEL MUNICIPAL PERFORMANCE ALONG BACK TO BASICS PILLARS (Cont..) Assisting Ailing Municipalities with the Distribution of Electricity: Highlight priority plans in place through partnership with Eskom, SALGA and MISA to expedite the implementation of course corrective measures to assist ailing municipalities with electricity distribution and revenue enhancement – Key Partners of the Department SUPPORTING ENTITY Service Delivery SALGA • Implementation of projects funded through Municipal Infrastructure Grant GAUTENG COGTA SUPPORT INITIATIVE DESCRIPTION OF INITIATIVE - Wheeling training, - - Bi-directional metering training; Processing of Embedded generation application 1 MW and larger; - Grid Impact Specialist training Online metering system for Large Power Users and commercial customers Meters (Emfuleni and Merafong).
These are training initiatives focused mainly creating an enabling environment for municipalities to prepare themselves to operate in the renewable energy space.
The project is aimed at reducing non-technical losses and enhancing revenue by replacing all dysfunctional/faulty reading meters, setting up a remote meter service system to manage all meters, providing quality and improved municipal billing service to the industrial/commercial base Further details are provided for in Annexure ‘ …… ` 45 SUPPORT PACKAGES THAT ARE BEING IMPLENTED TO ADDRESS MUNICIPAL CHALLENGES SUPPORT PACKAGES THAT ARE BE IMPLEMENTED TO ADDRESS CHALLENGES CRITICAL CHALLENGES NATURE SUPPORT ACTIONS ACROSS MUNICIPALITIES Rise of Coalition Municipal Government • Mediation and Conflict Resolutions mechanism are in place.
Political 47 SUPPORT PACKAGES THAT ARE BE IMPLEMENTED TO ADDRESS CHALLENGES CRITICAL CHALLENGES NATURE OF SUPPORT ACRROSS MUNICIPALITIES Ward Committee functionality GOVERNANCE Functionality of Municipal Public Account Committees ( MPACs).

• • • CoGTA in collaboration with SALGA and IEC, municipalities are supported to establish and induct the Ward Committees.
Furthermore, municipalities are supported to promote participation in community based local governance processes through the ABCD approach The municipalities are supported to address issues raised by the AGSA through the OPCA Provincial Coordinating Committee which assists municipalities with advisory support with regards to the implementation of the Audit Action Plan.
The committee is a monitoring and supporting structure consisting of Gauteng CoGTA, Gauteng Treasury, National Department of Cooperative Governance and Traditional Affairs, National Treasury, Office of the Premier, SALGA, Office of the Auditor General (AG), Chartered Institute of Government Finance, Audit and Risk Officers (CIGFARO) and other stakeholders.

All the stakeholders play a key role in assisting municipalities with the development, implementation and monitoring of Municipal of audit action plans.
The Department has successfully appointed a panel of service providers that will facilitate the MPAC skills programs over the next three years 2022-2025.

The Enrollment of Councillors and Officials is as follows: ❑50 Councillors and Officials for NQF L3 ❑50Councillors and Officials for NQF L4 ❑50 Councillors and Officials for NQF L5 ❑82 Councillors and Officials for Accountability and Ethical Conduct (NQFL5).
48 SUPPORT PACKAGES THAT ARE BE IMPLEMENTED TO ADDRESS CHALLENGES CRITICAL CHALLENGES NATURE SUPPORT ACTIONS ACROSS MUNICIPALITIES Increasing UIFW expenditure .

Increasing number of audit findings.

Issues Poor or no consequence management.

FINANCIAL MANAGEMENT • The municipalities are supported to address UIFW expenditure.

The project is designed put controls in place for the identification, prevention and reporting of unauthorised, irregular, fruitless and wasteful expenditure.
• The Operation Clean Audit support , includes the following: • Provision of additional capacity to support develop sound Audit Response Plans to address Auditor General issues.

• Monitoring Year-end preparations through the OPCA PCC.

• Review of accounting policies in targeted municipalities.
• High level and in-depth technical reviews of the AFS and asset registers before submission to the AG in targeted municipalities • Support to ensure complete and accurate service delivery reporting as it relates to Audit of Pre-Determined Objectives 49 SUPPORT PACKAGES THAT ARE BE IMPLEMENTED TO ADDRESS CHALLENGES CRITICAL CHALLENGES NATURE SUPPORT ACTIONS ACROSS MUNICIPALITIES Low spending in Capital Budgets • Capex War established to monitor and support municipalities to improve spending on capital budgets.
Failure to honor payment arrangements for bulk services.

• Mobilisation of support from other sector departments (GPT, NT) to support municipalities with revenue enhancement, payment of Eskom and Rand Water .

FINANCIAL MANAGEMENT Increasing Government Debt Growing Debtor’s Book.

Declining revenue and possible unsustainable budget which has implications for service delivery provision • Facilitation of strategic engagements of bulk suppliers to negotiate realistic payment plans for municipalities.
• CoGTA and GPT is working closely through Provincial Debt Management Committee ( PDMC) to facilitate the payment of government debt owed to municipalities.

• The assessment of billing data for Large Power and Water users, development and implementation of the of plans to address identified challenges in the billing data of the Large power and Water users.
• The assessment of municipal viability and the development of municipal viability strategy • Deployment of the revenue experts to assess the revenue value chain and the implement the integrated revenue plans.

• Development and implementation of simplified revenue plans.
50 SUPPORT PACKAGES THAT ARE BE IMPLEMENTED TO ADDRESS CHALLENGES CRITICAL CHALLENGES NATURE OF SUPPORT ACROSS MUNICIPALITIES Service Delivery High Levels of Non-Revenue Water and Electricity Losses • Deployment of Project Management and Engineering Experts to support the municipality through the SAICE and MISA Support Programmes.
Poor coordination and slow implementation of infrastructure projects • GPT, COGTA and MISA conduct quarterly site visits to monitor the capital projects implementation/performances as well as to assess the status of the projects and advise on challenges thereof.
• Capex War room meetings led by COGTA aimed at accelerating capex and address spending bottlenecks identified 51 SUPPORT PACKAGES THAT ARE BE IMPLEMENTED TO ADDRESS CHALLENGES CRITICAL CHALLENGES NATURE SUPPORT ACTIONS ACROSS MUNICIPALITIES High Level of Vacancies (Key Section 56 and 57 and Critical Technical Posts) • Monitoring and reporting on compliance and progress on the finalisation of recruitment processes for key Section56 and 57 as well as other critical technical positions.
Administration Finalization of appointment processes and slow progress in the filling of senior management positions also contributes to senior management vacancies.

Non-compliance by municipalities with regard to salaries of senior managers as provided by the Upper Limits Notice on appointment of senior managers • 1 Municipality (Merafong LM) supported with Organizational Structure and Institutional Review.
• 4 Experts placed in regional teams to support municipalities to address service delivery challenges (2 Organizational Development and Design Experts, 1 Local Government Labour Expert and 1 Local Government Legal Expert).

• 11 Municipalities supported to comply with MSA Regulations on the appointment of senior managers (Section 54A and 56).
• 11 Municipalities supported to institutionalise performance management system 52 RECOMMENDATIONS It is recommended that the NCOP Three Sphere Planning Session take note of the presentation.

DISCUSSION Q & A