JOHANNESBURG ROADS AGENCY SOC (LTD) Reg. No. 2000/028993/07

MID YEAR REPORT

(2015/16)

Final 27 January 2016

In terms of Section 121 of the Municipal Finance Management Act 56 of 2003 (as amended) and Section 46 of the Municipal Systems Act, 32 of 2000 (as amended)Companies Act 71 of 2000

COMPANY INFORMATION:

Registration number: 2000/028993/07

66 Pixley Seme Street Johannesburg Registered address: 2001

Johannesburg 2000

Postal address: Johannesburg Roads Agency Private Bag X70 Braamfontein 2017

Telephone number: (011) 298-5001

Fax number: (011) 298-5178

Website: www.jra.org.za

Bankers: Standard Bank of SA Limited

Auditors: Auditor General South Africa (AGSA)

Vision

The best city roads authority that enables economic growth and sustainability.

Mission

We commit to provide quality roads that are accessible, safe and liveable for our communities”

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Table of Contents

CHAPTER 1: LEADERSHIP & CORPORATE PROFILE Page

1.1 Corporate Profile and Overview of the entity 6

1.2 Strategic Objectives 6

1.3 Salient Features 7

1.4 High-level organisational structure 7

1.5 Chairperson‟s Foreword 9

1.6 Managing Director‟s Report 9

1.7 Chief Financial Officer‟s Report 11

CHAPTER 2: GOVERNANCE

2.1 Board Of Directors 169

2.2 Board Committees 19

2.3 Directors and Prescribed Officers Remuneration 22

2.4 Company Secretarial Function 24

2.5 Risk Management and Internal Control 25

2.6 Internal Audit Function 25

2.7 Corporate Ethics and Organisational Integrity 28

2.8 Sustainability Report 28

2.9 Anticorruption and Fraud 32

2.10 IT Governance 32

2.11 Compliance with Laws & Regulations 34

CHAPTER 3: SERVICE DELIVERY PERFORMANCE

3.1 Highlights and Achievements 36

3.2 Service Delivery Challenges 44

3.3 “Game Changer” Programmes 45

3.4 Performance against Service Standards 47

3.5 Capital Projects & Expenditure 49

3.6 Performance against Institutional SDBIP 50

3.7 Supply Chain Management and Black Economic Empowerment 54

3.8 Statement on amounts owed by and to Government Departments and 55 Public Entities

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CHAPTER 4: HUMAN RESOURCES AND ORGANISATIONAL MANAGEMENT

4.1 Human Resources Management 56

4.2 Employee Remuneration (Total Costs including Executives) 60

4.3 Key Vacancies 61

4.4 Employment Equity 61

4.5 Skills Development and Training 62

4.6 Performance Management & Succession Planning 66

4.7 Disciplinary Matters and Outcomes 67

4.8 Leave & Productivity Management 67

4.9 Employee Wellness / HIV/AIDS on the Workplace 67

4.10 Employee Benefits 68

4.11 Occupational Safety, Health and Environment (SHE) 70

CHAPTER 5: FINANCIAL PERFORMANCE

5.1 Statements of Financial Positions and high level notes 76

5.2 Statement of Financial Performance and high level notes 76

5.3 Cash Flow Statement 76

5.4 Ratio Analysis 76

5.5 Report on irregular, fruitless and wasteful expenditure and due process 76

5.6 Pending Litigation and possible Liabilities 79

5.7 Insurance Claims against / to MOE / Department 82

CHAPTER 6: INTERNAL & EXTERNAL FINDINGS

6.1 Results of Internal Audits 84

6.2 Progress on the resolution of internal audit findings 84

6.3 Progress on the resolution of external audit findings 86

CHAPTER 8: GENERAL

Annexures 87

Acronyms 88

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Approval

Goodwill Mbatha Date Chief Finance Officer

Fikile Ramatseba Date A/ Managing Director

Confirmation of Receipt

Sipho Mhlambi Date Cluster Champion Group Governance

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CHAPTER ONE CORPORATE PROFILE & LEADERSHIP

1.1 Company Profile and overview of the entity

The Johannesburg Roads Agency (SOC) Ltd commenced its business on the 01 January 2001. The City of Johannesburg (COJ / the City) is the sole shareholder of the Company. In terms of the founding documents of the Company, and the Service Delivery Agreement entered into between the City and the JRA, the mandate of the JRA is to design, construct and maintain roads and roads related infrastructure. The City adopted a new governance model in 2006 placing the JRA within the transport sector which includes the Transportation Department and MetroBus, another COJ entity. Administratively, the sector is responsible and accountable to the City Manager whilst politically it is accountable to the Member of the Mayoral Committee (MMC) responsible for Transportation, who is currently Councillor Christine Walters. The Company‟s Head Office is situated in the Central Business District (CBD) of Johannesburg.

1.2 Strategic Objectives

Our Vision: The JRA‟s vision is to be the best city roads authority that enables economic growth and sustainability.

Our Mission: The JRA‟s mission is that we commit to provide quality roads that are accessible, safe and liveable for our communities.

Our Core Values: Respect Caring for the customer, prioritising communities, ensuring equity Accountability The man in the mirror, responsible actions Ubuntu Compassion for communities and road users, empathy, humility Cooperation Working together, integration, collaboration and pooling resources Honesty Ethics, transparency, doing the right thing

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1.3 Salient Features

Who is the JRA and what do we do? JRA AT A GLANCE / KEY ACHIEVEMENTS: • Municipal Entity solely owned by the City of Johannesburg • Tasked with the design, construction and maintenance of roads and roads related infrastructure • Established 2001 •

How do we do it? Pillars and enablers

Governance

Board: 1 X Independent Chairman 7 X Independent Directors 2 X Executive Directors (MD & CFO)

 Audit and Finance Committee  Risk and IT Committee  Service Delivery Committee  Remuneration, HR, Social and Ethics Committee

1.4 The JRA’s High-Level Organisational Structure

The business model and structuring of the JRA sees the company managed by Heads of Department (HoD‟s) who report directly to the Managing Director, who is also the Accounting Officer. There are six HoD positions, plus the Chief Financial Officer, as set out in the organogram below.

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The operational or service delivery element of the business is organised into seven regions as per the map below. The regions in turn are structured around depots, with traffic signals and RSD being stand-alone depots. Strategic assets, including the motorways depot, asphalt plant and the laboratory, are also managed under Regional Operations.

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1.5 Foreword by the Chairman of the Board (To be provided in the JRA Annual Report)

1.6 Managing Director Report

For the 2nd quarter of 2015/16, the JRA‟s focus was on service delivery activities. Whilst service delivery remained at the core of the company activities, a lot of effort was spent in implementing the CAPEX programmes for the financial year. The City‟s recommitment to investment in the road infrastructure within the City of Johannesburg has been evident over the past 2 years with a drastic increase in the CAPEX budget allocation since the 2014/15 financial year. During the quarter, implementation of the capital programme continued and multi-year projects awarded in the previous financial year were progressing well and are on target.

Jozi@Work has been implemented through existing initiatives that commenced in the previous financial year. A total of 53 SMME‟s were appointed and 778 jobs created and a total amount of R 25 292 734.25 has been committed during this quarter. During the quarter, the Annual Financial Statements (AFS) and Annual Performance Report for 2014/15 period were completed and submitted to the Auditor General. The report together with management action plans were presented and adopted by the Audit, Risk and Finance Committee and the Board in December 2015. For the second time in its history, the JRA obtained a clean audit opinion for 2014/15 both in terms of financial position and in terms of performance.

The JRA has 8 core areas over which work stream programs have been divided in terms of the 2015/16 scorecard. These include:  Customer Charter;  Roads Management;  Bridges Management;  Stormwater Management;  Mobility Management;  Finance Management;  Internal processes;  Governance.

The JRA Company Scorecard 2015-16 was approved by the Board during the quarter. The performance of the JRA at Board and City level will be monitored and reported on as derived in the scorecard. Performance progress against objectives in relation to service delivery activities for the 1st quarter is contained in this report. During the second quarter, during the assessment of performance in relation to the JRA performance regarding the City‟s institutional Service Delivery Budget Implementation Plan (SDBIP), it became apparent that there is misalignment between the targets of the City‟s SDBIP and that of the JRA Company Scorecard. The SDBIP targets were originally set prior to the finalization of the 2015-16 budget and based on the approved 2014-15 CAPEX 3 year budget allocation. Post the approval of the 2015-16 budget allocation, the SDBIP targets were not amended in line with the approved reduced 2015-16 CAPEX budget resulting in a shortfall of the budget required in order to complete the SDBIP programme in certain instances. The JRA Company Scorecard, which incorporates the same targets, was approved taking the budget allocations into consideration. This has resulted in a misalignment between the City SDBIP and JRA Company Scorecard for the 2015-16 period. A deviation report has been submitted to the City to regularize the misalignment

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During the second quarter twenty eight (28) positions were filled. All of these posts were new candidates to the JRA. During the quarter, key posts were filled, these include inter alia: - Manager: Risk - Infrastructure Engineer: IT - Assistant Manager: Audit - Assistant Manager: Planning - Assistant Manager: Planning - Assistant Manager: Facilities - Assistant Manager: Planning - Assistant Manager: Contract Twenty eight (28) employees exited from the services of the JRA during the 2nd Quarter as at December 2015. For the 2nd quarter the operating expenditure was R 222, 111 million. The income for the quarter was R 245, 291 million, representing a profit of R 23,180 million for the quarter. The accumulated surplus at end of second quarter was R 230, 367 million as compared to an accumulated surplus of R 166, 802 million at the end of June 2015. The 'cash on hand' position as at the 2nd quarter was R 373, 031 million. In terms of the Supply Chain Procurement Plan, the JRA is on target as at December 2015. Of the total CAPEX budget of R 1 415 241 000.00, awards to a value of R1 205 591 552, 44 have been made. This represents 85.2% of the CAPEX allocation being committed as at December 2015. During the quarter a total of R 276, 296 million was spent on CAPEX projects against a quarterly target of R 353, 810 million. This represents a quarterly performance of 78, 1% in comparison with last year‟s 2nd quarter performance of 47.22%.

Mpho Kau Acting Managing Director

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1.7 Chief Financial Officers Report

Financial Performance

1.7.1 Financial performance 2nd quarter:-

 At end of the 2nd quarter, the JRA had a 'cash on hand' position of R 373,031 million;  For the 2nd quarter the operating expenditure was R 222, 111 million against a quarterly target of R 235, 798 million. This reflects a 5,8 % underspend on OPEX Budget .  The income for the quarter was R 245, 291 million, representing a profit of R 23, 180 million for the quarter The Financial position of the JRA in the second quarter is summarised as follows:-

 Additional income of R 9, 493 million was generated during the quarter. This comprised the following: o Interest earned on the positive cash on hand for the quarter was R 5, 756 million, and no budget was set as the amount is not predictable; o Jobbings and Developers Contributions are R 3, 193 million and R 2, 794 million respectively, over budget. o The accumulated surplus at end of second quarter was R 230, 367 million as compared to an accumulated surplus of R 166, 802 million at the end of June 2015. o For the quarter Audit Fees, Depreciation, Directors Emoluments, , Leased Services, Municipal Service Charges, Security, Telephone and Fax and Data Services are over budget by R11, 016 million, but this is compensated for savings on other line items. o Leased Contract Services (Vehicles) is over budget by R 5, 713 million and it is envisaged that the expenditure will exceed the budget, but there is sufficient savings to compensate for the anticipated over expenditure of R 11, 5 million, as vehicles being purchased by JRA will replace leased vehicles.

 For the 2nd quarter period (as at 31 December 2015), the employee costs are over the budget by R 12, 798 million. Provisions have been made for 13th cheque, performance bonus and leave. The salary increase approved was 7% and the increase in the budget for employee costs was 4%, thus an additional amount of R 32 million was requested in the Adjustment Budget process. This will also cover the additional strategic posts to be filled as previously approved by the City with a budget of R 5 million for the remainder of this financial year as well the intake of additional Interns for JRA. It is envisaged that JRA could be approximately R 32 million over on the original salary budget for the financial year. Presently only posts where employees have resigned, retired or passed away are being filled, as well as the strategic posts approved by the City.

Supporting notes to the financial position:-

 Provisions have been made for, leave provision, 13th cheque and performance bonus.  The material stock amounts are now captured on the JRA‟s financial system, J D Edwards (JDE).  The management fee is 2, 5% of the EFF and USDG Grant funded capital projects actual spend.

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 The current ratio at the end of the first quarter is 1: 1, 41 against a target of 1:1. This means that the JRA is able to pay current liabilities through current assets as the company has more current assets than current liabilities.

1.7.2 Finance Interventions The following interventions continue to be implemented in order to stabilize the JRA financial environment: • Implementation of processes whereby payments are made to service providers twice a month, except for emergencies, salaries and statutory payments such as VAT, PAYE and salary third party payments. This has a resultant effect as can be seen in the reduction of bank charges and no interest payable, but interest earned by JRA. • Implementation of EFT payments instead of manual payments; • Pre-approved overtime by the relevant Head of Department; • Historically, the JRA has been invoicing the CoJ for the monthly operating subsidy allocation on 26th/27th of the month for the following month in order that the monthly allocation can be received from COJ in the first week of the ensuing month. The JRA is currently proposing to the CoJ that the allocation be received in July each year for the whole year. The JRA recognises that its financial position has improved, by now having a „cash on hand‟ position. In order to improve its financial position, the JRA continues to implement various plans to bring stability to its financial position. These plans include short terms interventions (quick wins), medium term (0-24 months) and long term plans (more than 24 months) and include the following: i) Stabilization of funding a. Implementing tight budget monitoring controls; b. Continually increasing collection levels for accounts receivable and prohibiting overspending, where possible; c. Realign the budget to operations of the company and closer monitoring of actual expenditure; d. Refurbish the Asphalt plant to increase production capacity and generate revenue from external customers; e. Explore, within legislative compliance, other external revenue generating mechanisms.

ii) Ensuring that the capital budget is spent in the year by having the projects tender process accelerated and to begin the projects earlier. iii) Reviewing the performance of the finance department in order to improve financial management and the overall effectiveness and efficiency. iv) Reviewing the Supply Chain Management unit and proposals will be made on amending the structure and documenting the processes. v) Implemented strict quality assurance reviews in Supply Chain Management unit to control and centralise procurement processes according to the approved budget. vi) Improving the inventory management at the Asphalt Plant to allow monitoring of activities in all stages of the value chain and record transactions in time for budget monitoring.

1.7.3 BBBEE Expenditure

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Total payments made in the 2nd quarter amount to R 568 679 573,21 of which R316 315 025,84 was spent on BBBEE suppliers. (55.6 % against a target of 75%)

1.7.4 Supply Chain Management:

The supply chain progress (per capital project) is summarised as attached Annexure B

Supply Chain Management (SCM) interventions in order to improve performance are noted below:-

Challenges# Identified Progress on initiatives Target Date Lack of utilization of panels in relation to the award of bids The establishment of Panels will assist the business in the achievement of shorter service Ongoing delivery lead-times and black economic empowerment objectives Non-responsive tenders . Specifications too stringent for prospective . Specifications for tenders that were not bidders responsive have been revised – Gravel roads Ongoing . Ambiguity in the specifications issued to . Ambiguity in the specification documents has prospective bidders been removed and the specification

documents were updated SCM Policy and Ethics . SCM Policy is not aligned to the Procurement . The current policy is under review and it is Jan 16 Strategy currently being work shopped in the various

company committee . The SCM Unit, Regional Management and

. Code of conduct for SCM Practitioners is in place Committee Members signed a pledge on SCM practices. Completed

Internal controls . Lack of compliance guidance and checklists . Continuous communication on procurement . Lack of procedures for emergencies (deviations) processes Ongoing . 3 quotes . Introduced the use of checklists in the procurement process

. Defined procedures for handling emergencies (deviations) . Developed Standard Operating procedures for all finance processes

1.7.5 Progress on supply chain processes

Contracts awarded

Contract information can be found on the City of Johannesburg‟s website as well as the JRA website.

A summary of all contracts awarded is provide as Annexure L to this report

Contracts awarded (above R 10 million)

During the 2nd Quarter of 2015/16, Contracts Awarded (Above R 10 million)

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CONTRACT CONTRACT CONTRACT SERVICE START BU END DATE AMOUNT (VAT NUMBER DESCRIPTION PROVIDER (S) DATE INCLUSIVE)

October 2015

Nil

November 2015

046/2015 Reconstruction and ID Actophambili 02/11/2015 01/11/2017 R16 250 469.04 Rehabilitation of roads in Roads Pty Ltd Region f of the city of Johannesburg for two financial years

151/2015 Provision of Marketin Garona 25/11/2015 Project R13 127 411.82 Communication Roll Out g Communication Based Plan to Promote The JRA and projects Flagship Project

December 2015

051/2015 Complete Streets ID WA Road 08/12/2015 Project R14 702 8098.00 Construction Work in Ivory Construction Based Park

050/2015 Professional service: for ID BMK Engineering 23/12/2015 Project R21 950 510.00 Visual Conditions Consultants assessment of all the roads Based in the city of Johannesburg and formulation of visual condition index and Maintenance Programmes for JRA

042/2015 Constriction of Le Roux ID Bophelong 24/12/2015 Project R 37 329 249.17 Avenue from Single Construction (Pty) Based Carriageway to Dual Ltd Carriageway from Pretoria Main (R101) to old Pretoria main Road

038/2015 Reconstruction and ID Actophambili 24/12/2015 Project R 25 701 453.10 Rehabilitation of Roads in Roads (Pty) Ltd Based Region A

045/2015 Rehabilitation and ID Tranacon 24/12/2015 Project R 16 393 784.80 reconstruction of streets in Constraction cc Based COJ Region E

047/2014 Rehabilitation and ID Boitshoko Road 24/12/2015 Project R 18 301 068.75 reconstruction of roads in surfacing and Based COJ Region C Civil works cc

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1.7.6 Contract Management

Contract performance assessments have been conducted for most projects in consultation with the project managers and business representatives. The JRA has embarked on departmental meetings and have held a meeting firstly with the Infrastructure Department as one of the departments with critical contracts. Contracts have been categorised into “Critical” – mainly Capex contracts; “High”- Opex Capex contracts and “Low”- mainly supply and delivery contracts. The performance monitoring of these categories will be done monthly (Critical), Quarterly (Opex Capex) and as and when (Low) ones. Performance scoring of the service providers is conducted on a monthly basis and feedback is still at a very slow pace. The backlog in respect of drafting and signing of contracts has been eradicated. Queries received during the quarter for a contract management perspective include inter alia:  Queries regarding pricing, i.e., contract not clearly stipulating how the exchange rate will apply as the rate and date to be used were not specified.  2 contracts were escalated to contracts management for poor performance, late deliveries and poor quality of products on supply of goods contracts ;  9 contracts, majority being construction contracts were escalated to Contracts Management for poor performance.  4 construction contracts are currently on penalties.  16 construction contracts were scored below 3 points and progress is being monitored on a monthly basis . Expiry of contracts

During the quarter, a total of 2 contracts for the supply of goods expired in accordance with the contract period. There were 9 extensions of contracts granted in the 2nd Quarter.

1.7.7 Contract Expenditure

Currently, there are two hundred and sixty four (264) contracts recorded in the JRA Contracts Register. 2 contracts have gone over budget. 23 contracts have spent less than 30% after 6 months of appointment. 13 contracts have no spending after 6 months of being appointed.

1.7.8 Capital Projects

Period Capital Expenditure progress % Progress against Annual progress respective quarterly target Quarter 2 During the quarter a total of R 276, This represents 19,53 % 31.44 % of the annual 296 million was spent on CAPEX expenditure against a quarterly budget projects against a quarterly target of target of 25% R 353, 810 million. This represents a quarterly performance of 78, 1% in comparison with last year‟s 2nd quarter performance of 47.22%.

The detailed JRA CAPEX Expenditure Report Summary (as at December 2015) is attached as Annexure C to this report.

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CHAPTER TWO GOVERNANCE

2.1 Board of Directors The Board is a unitary one having both executive and non-executive directors. The Board has overall responsibility for governance and operates in terms of a Board Charter which clearly defines its primary functions including the determination and direction of strategy, review of performance against the business plan, determining and monitoring compliance with policies and procedures and the management of risk. The Board retains effective control of the company and the formal delegation of authority is approved. The Managing Director is the accounting officer in terms of the MFMA. All directors are appointed by the Shareholder annually and the selection process is driven solely by the Shareholder in accordance with the City‟s Governance Framework. The process to recruit a new Managing Director is progressing well through the assistance of a head hunter. The provisions of the regulations for the appointment of senior managers in the public sector are being strictly adhered to.

All the directors are non-executive, save for the Managing Director and the Chief Financial Officer, with the role of the Chairman and the Chief Executive Officer being separate. The executive directors have five year fixed term contracts with the company. It is the opinion of the Board that all the non- executive directors meet the definition of independence, in terms of the Companies Act, municipal legislation and King III. The Board of directors and independent audit committee members were reappointed after the Annual General Meeting which was held on the 3rd February 2015 and remain unchanged since the last report. The governance structure allows that both Board and Committee members have unrestricted access to management as well as all records and information of the Company. The Board has approved a formal process to enable members of both the Board and its Committees to access, at company cost, external advice. The last internal assessment highlighted the need to provide more opportunities for further development for members. In this regard membership of the Institute of Directors has been offered to all members and targeted training is scheduled for the second quarter 2015/16. In accordance with the legislative requirements the members are all required to become signatories to the company‟s Code of Ethical Conduct and to make a full disclosure in the form of an annual declaration of interests which is updated as and when any changes in information dictate. Non - executive directors receive no benefit other than director‟s fees. Where a conflict does arise directors are required to excuse themselves from the meeting at which such matters are addressed. In terms of the MFMA and Supply Chain Regulation 44 Board and Committee members will potentially be in breach of the legislation should they undertake work for other municipalities. This matter was previously addressed by way of an exemption granted by the previous Minister of Finance, which exemption has expired. This matter has been addressed with the City‟s Group Governance department which has engaged with the Treasury Department. This matter is pertinent to a number of the company‟s Board and Committee members who also offer their services in a personal capacity to other municipalities, excluding Johannesburg. The Board Charter has set out the requisite skills set and responsibilities of the Board and Committees, as a collective. The Board is satisfied that it has the necessary skills and expertise to effectively discharge its mandate.

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Directors and Officers Liability insurance cover is in place, through the City, in respect of potential liability attaching to the execution of duties as directors or officers of the company. All cover is in accordance with that available in terms of current legislation. The detailed information relating to each Board and Committee member is as follows:

1. Jackie Manche (Chairman) Qualifications : BA (Hons), Wits and UCT : Special programme in urban and regional studies in developing countries and Master of City Planning (Massachusetts Institute of Technology) : Executive development programme – University of Pennsylvania First Appointment: 2015 February Position: Independent Non-Executive Chairperson and member of Remunerations & HR Committee (Incorporating Social and Ethics)

Ms Manche joins the JRA as from February 2015 as the Chairperson of the Board. Her experience includes a wide number of positions within the government sector, including as a consultant, as CEO of ICASA and as a research analysis for a number of financial institutions in respect of public sector projects. She possesses skills in governance, fiscal management and budgeting, systems and capacity building specifically within the public sector.

2. Harry Mashele Qualifications: MBA in Marketing and Industrial Engineering, B. Sc in Physics and Applied Mathematics, Senior Secondary Teachers Certificate (SSTC) First Appointment: 2013 March Position: Independent Non-Executive member, Chairman of the Audit & Finance Committee, and member of the Risk & IT Committee

Mr Mashele joined the JRA in March 2013. He was appointed as the Chairman of the Audit Committee as of the 2013 and was reappointed for the 2014/2015 Financial Year. He served as a member of the Service Delivery Committee in 2013/2014 financial year. His skills include Transport and Logistics specialist, Corporate Affairs and Strategy Development. He is experience in being a non-executive member of the board for varies companies, i.e. Protec, B2B Africa and Metro Trading Company (MTC).

3. Lethabo Mashamaite Qualifications: MBA in Business Administration, Bachelor of Technology-Marketing, National Diploma Marketing First Appointment: 2012 March Position: Independent Non-Executive member, Chairman of the Remunerations & HR Committee (Incorporating Social and Ethics), and member of the Audit Committee.

Ms Mashamaite joined the JRA in 2012. From her first appointment, she was appointed a chairman of the Remunerations, HR and Social Ethics Committee. She was then reappointed for the 2014/205 financial year. In 2013/2014 she serves as a member of the IT sub-committee. She serves as a member of the Audit & Finance Committee for 2014/2015 financial year. Her leadership skills include being a marketing and brand manager, a member of the Black Management Forum.

4. Erick Ngomane Qualifications: B. Sc. Eng (Civil), GDE (Project Management) First Appointment: 2012 March Position: Independent Non-Executive member, Chairman of the Service Delivery Committee.

Mr Ngomane joined the JRA on March 2012. He was appointed a chairman of the Service Delivery Committee and was reappointed for the position for the 2014/2015 financial year. He further possess skills in Public Transport Planning and Studies, Traffic impact studies, Traffic calming and safety studies, Road signs planning and design. He is a member of the South African Institution of Civil Engineers – SAICE. He has been involved in the intensive data collection projects for the preparation on Integrated Transport Plans (ITP).

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5. Albert Torres Qualifications: B. Com (Hons), Certificate in Theory of Accounting First Appointment: 2014 February Position: Independent Non-Executive member, Chairman of the Risk & IT Committee and member of the Audit & Finance Committee.

Mr Torres is the latest non-executive to join JRA in February 2014. He is a member of the Audit & Finance Committee and the Chairman of the Risk & IT Committee. He is an Accountant by profession.

6. Nompumelelo Msezane Qualifications: BSc (Ed), BSC (Hons), MSc (Environmental Management), MDP First Appointment: 2012 March Position: Independent Non-Executive member, and member of the Service Delivery Committee

Ms Msezane joined the JRA in March 2012. She is a member of the Audit & Finance Committee and the member of the Service Delivery Committee. Her skills include Environmental Management, Water quality management, Water resource management and public participation.

7. Marumo (Bobby) Ramasia Qualifications: MBCHB New Appointment 2015 Position: Independent Non-Executive member, and member of the Remunerations & HR Committee (Incorporating Social and Ethics)

Dr Ramasia is a medical doctor who has extensive experience in senior management positions including as the principal officer of Medschemes. He has also been part of the executive management of Netcare and has held a number of medical positions which have included medical support to a wide variety of sporting bodies.

8. Linda Nxumalo Qualifications: BABM (Hons), International Business Management Executive Development program First Appointment: 2013 March Position: Independent Non-Executive member, and member of the Service Delivery Committee and Remunerations & HR Committee (Incorporating Social and Ethics)

Ms Nxumalo joined JRA in March 2013. She is a member of the Remunerations Committee and the Service Delivery Committee. She has the skills in leadership, business transformation, and change management strategy. She is a member of the Black Management Forum. A strong assertive go-getter woman who has been a non-executive director in a number of companies.

9. James Maina Qualifications: BEng (Hons) (civil), MEng (civil), PhD (civil) First Appointment: March 2012. Position: Independent Non-Executive member and member of the Service Delivery Committee.

Prof. Maina joined the JRA on March 2012. He was overseas during 2013/14 and was reappointed to the Board in October 2014. He is a university Professor with skills in road construction materials, road pavement analysis, design, evaluation and construction practices as well as Auditing for Quality Assurance and Quality Control in road construction projects. Please cross reference to Executive Management Table for information pertaining to Executive Directors – Managing Director and Chief Financial Officer

Attendance at meetings, both Board and Committees, is set out in detail in Annexure N. Remuneration of both executive and non-executive directors and independent audit committee members is dealt with comprehensively in the Remuneration report.

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2.2 Board Committees (Cross reference to Annexure N for attendance) The purpose of the Board Committees is to assist the Board with the discharge of certain responsibilities. All the Committees have defined mandates and operate under approved Terms of Reference, which have been reviewed and updated during the current year. The chairpersons of all the Committees are Board members and report to the Board quarterly. Members have unlimited access to all information, and staff members, as they deem necessary to enable them to fully discharge their duties. All the Committees have complied with, and discharged, their duties in accordance with the approved Terms of Reference and legislation. Each Committees composition is as follows:

Body Composition Mandate Other

The Committee is comprised of three board and The Committee has complied with Section 94 (7) As from 2014/15, the three independent Audit Committee members. of the Companies Act and Section 166 of the Committee commenced The inclusion of three non-board members is not MFMA. The Committee has a specific mandate with regular meetings in line with the Companies Act, however, the which is set out in detail in the Terms of with both management MFMA takes precedence and these appointments Reference (available on the JRA website) and and the auditors in are in accordance with the MFMA and its which is summarised as follows, with references closed sessions. This directives. All members meet the qualification to the MFMA: provides an opportunity requirements of King III being, academic  Responsibilities relating to Internal Control [s for the respective qualifications, or experience, in economics, law, 166 (2) (a) (i)] groups/ persons to corporate governance, finance, accounting,  Responsibilities relating to Internal Audit make any Audit and Finance Committee commerce, industry, public affairs or human Services [s166 (2) (a) (i)] representations they felt resource management.  Responsibilities relating to Accounting and are necessary to the Following the Annual General Meeting at which Financial Reporting [s 166(2) (a) (iii) & (iv)] Committee. Both the the Shareholder appoints the Audit Committee  Responsibilities relating to Performance external and internal members, all members were reappointed. Mr Management & Performance Evaluation [s auditors do have free Mashele remains as the chairman of the 166 (2) (a) (v)] and [s 166 (2) (a) (viii) access to the chairman Committee. respectively] of the Committee and to  Responsibilities relating to Corporate all information. Governance [s166 (2) (a) (vi)]

 Responsibilities relating to Corporate Governance  Responsibilities relating to the External Audit Function performed by the Auditor-General [s 166 (2) (c)]  Responsibilities relating to Ethics and Forensic Investigations [s 166 (2) (a) (ix) & s166 (2) (d)]  Responsibilities relating to Reporting [s 166 (2) (a), (b), (c), s121 (3) (j) and s121 (4) (g)] The Committee is also mandated to:  Make submissions to the board on any matter concerning the company‟s accounting policies, financial control, records and reporting;  Performed such other oversight functions as determined by the Board.

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Body Composition Mandate Other

The Committee is comprised of three non- executive The Committee‟s mandate encompasses Board members with the Managing Director and the Chief the oversight of Risk as well as Financial Officer also serving on this Committee. Information Technology. Following the Annual General Meeting Mr Maimane It must be noted that risk oversight is the resigned from both the Board and the Committee. Mr responsibility of the Audit Committee in Torres remained as chairman of the Committee together terms of the MFMA and thus the with Mr Mashele and Drs Ramasia and Maina, all of Committee reports through to both the whom are independent non-executive directors. Board and the Audit Committee in Risk and IT Committee The Head of Department (Performance, Governance &, accordance with its terms of reference IT), Manager: Risk and the Manager: IT are invitees to the and includes the submission of the meetings. minutes of the Committee to the Board. The chairmen of the Audit and Finance and Risk and IT Committees serve on both Committees, and on the Board.

The Committee is comprised of four non- executive Board This Committee oversees the main Following the members with the Managing Director also serving on this function of the JRA and is of critical deterioration in service Committee. importance in overseeing service delivery delivery the Committee The respective operational Heads of Department are and the performance against the resolved in the 4th invitees to the meetings. Customer Charter Standards. Quarter to increase the Following the Annual General Meeting Mr Shubane The Committee is thus mandated to number of meetings it resigned from both the Board and the Committee. Mr exercise oversight in respect of Regional held to ensure that it Ngomane remained as chairman of the Committee Operations (roads and stormwater meets every second together with Ms Msezane, Ms Nxumalo and Dr Maina, all maintenance), Mobility and Freight (traffic calendar month. This

Service Service CommitteeDelivery of whom are independent non-executive directors. signals, road markings and freight will enable the management), Infrastructure Committee to exercise Development (Capex projects) and closer oversight and to Planning. monitor the implementation of corrective actions to address service delivery levels.

The Committee consists of four independent non- This Committee has a dual function in so executive directors and the Managing Director is also a far as, in addition to overseeing Committee member but only has a vote in respect of the remuneration and human resource social and ethics mandate of the Committee. He excuses issues, it fulfils the legislated social and himself from any decisions regarding remuneration and ethics mandate. thus the Committee composition meets the practice In terms of the Companies Act (Social emuneration and guidelines of King III. and Ethics Committee) the Committee The Head of Department: Corporate Services is a oversees sustainability and a detailed standing invitee to the meeting. Social and Ethical Committee Report is

Social & Ethics Committee Following the Annual General Meeting, Ms Mashamaite prepared and submitted to the was confirmed as chairman of the Committee together Committee quarterly. with Ms Nxumalo, Ms Manche and Dr Ramasia who are all independent non-executive Board members. Mr Human Resources, R Maimane resigned from the Committee and Mr Ngomane was not reappointed.

Executive Management Team (EMT)

The EMT is comprised of the Heads of Departments and the CFO as set out below. EMT operates with approved Terms of Reference and takes responsibility for the overall management of the Company.

The current EMT is made up as follows:

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Mpho Kau (45yrs)

Qualifications : B. Tech Degree in Civil Engineering

Position: Acting Managing Director and Head of Department: Infrastructure development

Mr Kau joined the JRA in 2009 and is the head of the infrastructure development department which deals with the Capital Expenditure Projects. As HoD: ID Mr Kau is responsible for the Capex budget. His previous appointments include Director of Technical Services at Ukhahlamba District Municipality and Office Manager and Senior Technician at BKS (now AECOM). He is a Member of the Institute of Municipal Engineers of South Africa (IMESA). He has previously worked in the consulting and construction sectors.

Goodwill Mbatha (40yrs)

Qualifications : CA(SA)

Position: Chief Financial Officer/ Finance Director

Mr G Mbatha joined the JRA in 2012 as CFO, and in this capacity has overall responsibility for the JRA finances. His previous appointments include Senior Manager at Deloitte and Senior Manager at the Auditor General. He is a Member of the South African Institute of Chartered Accountants. He has previously worked in the financial and auditing sectors.

Thulani Makhubela (44yrs)

Qualifications : Bachelor of Laws (B.luris), Bachelor of Laws (LLB), Certificate in Advanced Labour Law and Certificate in Executive Development Programme.

Position: Head of Department: Planning

Advocate Thulani Makhubela has been with the JRA since 2004 and moved to the position as head of planning in 2007. As HoD: Planning he is responsible for the development of business strategies, policies, procedures and performance standards of the JRA, as well as monitoring and reporting on the overall performance of the company. The Planning department is also responsible for development control, design and general co-ordination of infrastructure development. His expertise and previous appointments include working as a Labour Law Consultant for the Counsel for Workers Rights, Legal Advisor for the University of South Africa and practicing as an Advocate. He has worked in several other entities holding various executive positions. He holds various Non-Exec Directorship including, Board: Black Bond (PTY) Ltd (Chairman) and Mathew Goniwe School of Business Leadership (NED).

Mohale Matsuma (47yrs)

Qualifications: B. Admin (Hons) UNIN and IR (Hons) Stellenbosch

Position: Head of Department: Corporate Services

Mr Matsuma joined the JRA in 2013. Mr Matsuma is the most recent member of the executive team, joining in 2013. As head of Corporate Services (CS) he is responsible for Human Capital Management as well as the JRA facilities infrastructure and the Marketing and Communications department. His previous experience includes working as a Senior Manager at the Free State Department of Social Development with approximately 20 years public service experience. He has been a member of the HWSeta Board and served as the Provincial Deputy Chairman of Nehawu & was a Provincial Negotiator.

Darryll Howard Thomas (61yrs)

Qualifications: MSc. Engineering (Transportation Engineering) / BSc. Civil Engineering / Datametrics Diploma / Pr. Eng

Position: Head of Department: Mobility & Freight

Mr Thomas joined the JRA in April 2013 as HOD: Mobility & Freight Department, and in this capacity has overall responsibility for the Johannesburg Traffic Management / Traffic Control (including traffic signals) / Intelligent Transport Systems (ITS): Traffic Engineering (including geometric / traffic signal design and traffic safety design); Freight Movement Support and Infrastructure Protection (mitigating the effects of vandalism)

He has previously only worked in the Transportation Engineering Sector including eThekweni Transport Authority (Durban); Johannesburg Roads Agency: and Private Sector as ITS and Transportation Consultant He is a Member of the ITS SA, having served on the Board from 2001 to 2012, including 2 years as President Fikile Ramatseba (43yrs)

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Qualifications: B.Comm., MBL

Position: Head of Department: Performance, Governance, Information Technology and Risk

Mrs Ramatseba joined the JRA in February 2015 in the capacity of Head of Department: Performance Governance and IT. She is responsible for Performance Management and Quality Assurance; Risk Management; Legal, and Information Technology (IT). She is also responsible for seamless integration of JRA departments and coordination of the MD‟s Office including Internal Audit, Company Secretariat and Stakeholder Management and Inter-Governmental Relations.

She has approximately 20 years‟ experience in the public (SARS, Transnet) and private sector (Unilever, Sanlam, Mutual & Federal), in the areas of accounting, corporate governance, strategy, operations, public-private-partnership, supply chain management, outsourcing, IT, programme/project and people management. She is a member of the Institute of Directors. She has and continues to serve in a board and board committees of listed, public and private entities.

Seadimo Sindane (42yrs)

Qualifications: BTech Civil Eng/Transportation Planning; and National Diploma in Civil Engineering

Position: Head of Department: Regional Operations

Ms Sindane joined the JRA in March 2015 on a short term contract ending September 2015 as the Head of Regional Operations. In her capacity she has overall responsibility to provide strategic direction to the Department and oversight role for all the 7 regions of the City.

She was a Site Engineer in North West Department of Public Works responsible for construction of rural roads. From there she joined the private sector as a Transportation Engineer focusing on transport studies for public and private sector developments. She further enriched her Transportation skills when she worked for City of Johannesburg Transport Department. She received a balance of transport planning and operations when she joined the FIFA Local Organising Committee as a Transport Manager for all World Cup host Cities. She got introduced to planning for Economic Infrastructure when she joined BlueIQ Pty Ltd. Her responsibilities at BlueIQ included conducting and facilitating feasibility studies, implementation of programs and projects, development of key economic infrastructure master plans and reporting to relevant structures within the agency and government.

Permanent Invitee: Ms Boaratwa Leshope (33yrs)

Qualifications : BTech Internal Auditing and Certified Fraud Examiner

Position: Chief Audit Executive (Ops Manager Internal Audit)

Ms Leshope joined the JRA in August 2009 as an Audit Manager and was promoted to the position of the Operations Manager Internal Audit in December 2012. In this capacity she has overall responsibility for the management of the Internal Audit Function which includes fraud investigations and awareness. Her previous appointments include working as an Assistant Director and Senior Internal Auditor at the National Department of Public Works, Port Elizabeth Region. She is a Member of the Institute of Internal Auditors and Association of Certified Fraud Examiners. She has 9 years auditing experience with 7 years of experience in fraud examination.

2.3 Directors and Prescribed Officers Remuneration

Employee remuneration includes executive directors, management and employees who fall within the bargaining unit.

Remuneration is determined in accordance with the JRA Remuneration Policy as well as the pay scales set out by the City on an annual basis A new Remuneration and Reward Policy was developed during the last quarter of the 2014/15 period however it has yet to be approved by the Board and implemented. The development of this policy followed an extensive job skills evaluation and benchmarking exercise. The said policy has led to the development of a new Performance

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Management Policy as well as a Remuneration and Reward Policy, the latter which is still in a draft form and is yet to be approved.

All managers (assistant managers up to the Managing Director – above level 5) enjoy a Cost to Company (CTC) reward structure as well as a performance bonus. Managers are required to complete performance management agreements with the company, which include score cards that are informed by the company score card. The score card sets out key performance areas with defined deliverables. Management is measured against their score cards and may qualify for performance bonuses of up to a maximum of 14% (as determined by the City for 2014/15) of the total annual remuneration. Bonus payments are impacted by the overall performance of the company as well as the attainment of a clean audit.

The CTC package structure comprises a fixed guaranteed package, including retirement contributions, as well as the variable structuring applicable to elective benefits. This structuring allows for a degree of flexibility to take into account employees‟ personal requirements. The elective structuring options extend to choice of medical aid cover and the level of retirement fund contributions in excess of the prescribed minimum. A separate remuneration structure is applicable to bargaining unit employees who are on level 5 and below. These employees‟ salaries are structured according to the outcome of negotiations with Organised Labour. The current agreement with Labour affords employees at this level a 13th cheque, regardless of performance levels. These employees do not currently fall within the ambit of the performance management process; however, the new Remuneration and Reward Policy envisages the extension of performance management to include all employees. The 2014/15 financial year was the last in the existing three year salary agreement. A new agreement has been negotiated during Q1 however due to ongoing litigation the JRA awaits confirmation of the application of the agreement by the CoJ. In the interim the agreed increases for 2015/16 have been implemented. The uncertainty around the participation of the JRA in the centralised bargaining unit remains unresolved at the end of the reporting period.

Given that JRA is a public entity, we do not believe that there is scope for the establishment of any share incentive / profit share scheme. The JRA Talent Acquisition and Retention Policy does not have a provision which uses incentives to encourage retention however regular salary benchmarking is undertaken to ensure that salaries remain competitive. The Interchange Project (cross reference to Chapter 4) will include the identification of salaries which are above and below the median when measured against the construction and public sectors. While the JRA acknowledges that the benchmark within the market is generally the 50th percentile, the target salary benchmarking level will be determined by the Board upon finalisation of the Interchange report.

The staff has a variety of retirement funding options available. During the current year the company retirement funding contribution was increased by 3% across all employment levels. The policies applicable to executive employment remain the same as for all other staff save for the fact that they are subject to five year fixed term contracts.

The table below reflects the fees paid to the Non-Executive Directors during the Q1 2015/16, including the retainer fees for the 2014/15 period and in respect of Q2.

Fees Paid Non-executive Director (R)

Maboa Mashukudu James 11408.00 Maina James William 27382.00

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Fees Paid Non-executive Director (R)

Manche Jacqueline Boitumelo 53618.00 Mashamaite Marlene Lethabo 77580.00 Mashele Harry 73014.00 Msezane Nompumelelo 20540.00 Ngomane Erick Sello 22819.00 Nxumalo Lindani 36514.00 Nyakale Suzan Mary Ann Badanil 5704.00 Ramasia Marumo Abel 5704.00 Shubane Khehla*** Theunissen Robin Neill 17112.00 Torres Alberto 49060.00 Grand Total 400455.00 (***Payment for 2014/15 retainer)

Executive Remuneration Remuneration received by the Managing Director and Head of Business Units for the quarter is set out as follows:-

Gross Salary Quarter Gross Salary Months Total Paid Position Worked (R) (R) (R) MD 0 0 0 0

CFO 135778.70 407336.01 3 407336.01

HOD: Corporate Services 116344.30 349032.81 3 349032.81 HOD: Mobility & Freight 118495.90 355487.57 3 355487.57

HOD: Planning 114731.90 344195.79 3 344195.79

HOD: Regional Operations 118044.10 354132.33 3 354132.33

HOD : Infrastructure Development 137764.30 413292.84 3 413292.84

HOD: Performance Governance IT 120534.20 361602.53 3 361602.53

Directors and Officers Liability insurance cover is in place, through the City, in respect of potential liability attaching to the execution of duties as directors or officers of the company. All cover is in accordance with that available in terms of current legislation. 2.4 Company Secretarial Function Ms Karen Mills is the appointed company secretary and she meets with the requirements of the legislation and King III. Members have unlimited access to the company secretary who is responsible for the maintaining of the information systems and processes that enable the Board to fulfil its role.

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The Company Secretary is also responsible to the Board for ensuring that Board procedures are complied with and advising the Board on governance matters. All Directors have access to the Company Secretary for advice and services. Independent advisory services are retained by the Company Secretary at the request of the Board and in accordance with the approved processes. Ms Mills holds B.Proc and LLB degrees and the Board has satisfied itself that she is qualified to perform her duties in accordance with the applicable legislation and is a fit and proper person for the post.

2.5 Risk Management and Internal Controls 2.5.1 Introduction A comprehensive risk management process, supported by the JRA EMT Risk Management Committee (EMT RMC), Risk and IT Committee and the Board, has been implemented by Management. This is aligned with the JRA and City‟s Risk Framework & Policy. The JRA Risk Management unit attends, and participates in, the Group Risk process. The Risk Management Unit has developed an annual Risk Management Plan to guide the risk management activities; this includes an enterprise-wide risk awareness campaign and risk maturity assessment. Management monitors risks on a continuous basis, assisted by the departmental risk champions, and in line with the defined risk appetite and tolerance levels as determined by the Board. Quarterly risk reports are done by respective departments and are submitted to the various oversight bodies including JRA Executive Management Committee (EMT) and Risk management Committee (RMC) when meeting monthly as well as every quarter.

2.5.2 Risk Management Process Risk identification, assessment and monitoring is an on-going process based on the activities of the JRA, and based on recommendations from the assurance providers. Internal control mechanisms and mitigation actions are developed and implementation and effectiveness thereof monitored and measured. This financial year also sees JRA embarking on the implementation of combined assurance to improve the overall risk profile of the JRA. The JRA considers a variety of risks, including but not limited to strategic, operational, key projects, IT and fraud risks. As per the risk management policy, risk management framework, and risk appetite and tolerance framework JRA management conduct an annual risk review in collaboration with the City, the Board, the Risk and IT Committee. This process is supported by an on-going risk management process at departmental level with all staff encouraged to take ownership of risk.

2.5.3 Risks The JRA summary of risks is attached as ANNEXURE A to this report.

2.6 Internal Audit Function

Internal Audit provides assurance of governing internal controls and risk management to the organisation and the Audit and Finance Committee of the Board. The units‟ primary objective is to provide an assurance function by identifying and evaluating significant exposures to risk, and contributing to the improvement of risk management processes, governance and internal control systems. This is achieved through an independent and objective evaluation of the company‟s system of internal controls, as well as identification and reporting of the significant business risks and exposures which are brought to the attention of management and the Audit and Finance Committee. This is achieved through the presentation of comprehensive internal audit reports.

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In order to meet its responsibility with respect to providing reliable financial information, the entity maintains financial and operational systems of internal controls. These controls are designed to provide reasonable assurance that transactions are concluded in accordance with management authority, that the assets are adequately protected against material loss or unauthorised acquisition, use or disposal and those transactions are properly authorised and recorded. The system includes a documented organisational structure, levels of responsibility, and established policies and procedures, including a Code of Ethics, as well as a system of careful selection, training and development of people. These are all communicated to the parent municipality.

The entity also includes the Internal audit reviews of the operation of the internal control systems for adequacy and effectiveness in mitigating risks and reports its findings, and recommendations, to management and the board of directors. Corrective actions are taken to address control deficiencies as well as other opportunities for improving the systems. The board, operating through its audit committee, provides oversight of the financial reporting process and internal control systems. There are inherent limitations in the effectiveness of any system of internal control, including the possibility of human error and the circumvention or overriding of controls. As a result only reasonable assurance as to the effectiveness of the internal control system over financial statement preparation and safeguarding of assets can be provided. A documented and tested business continuity plan is being developed to ensure the continuity of business-critical activities. Some aspects such as IT Service Continuity are already in place and have been tested successfully.

As at the end of the 2nd quarter, the Internal Audit business unit completed the following audits including observation of reasonable assurance that the JRA objectives will be achieved:

Name Audit Area Date Opinion Expressed Rating Completed Payroll Management Audit Oct 2015 Inadequate and ineffective Red

Asphalt Plant Management follow-up Oct 2015 Adequate but ineffective Yellow Audit Key Control Assessment(Q1) Dashboard Nov 2015 Adequate but ineffective Yellow

Bids Observations Continuous Audit Oct - Dec 2015 Adequate and effective Green

Performance Information Audit Q1 Dec 2015 Adequate but ineffective Yellow

Budget Management Follow Up Audit Dec 2015 Adequate with the need for Yellow improvement on the effectiveness Contract Management Follow Up Audit Oct 2015 Adequate but ineffective Yellow

LEGEND

Red Major Progress Required

Yellow Some Improvement Required

Green Good Opinion with no Major issues raised

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2.6.1 Fraud Prevention Plan

2015/16

During 2015/16, a total of seven (7) fraud allegations were received, with three (3) new allegations received within the quarter and all allegations are in progress of being followed up. Progress to date

Progress No of Comment matters raised Total number of reported matters 7 Of the (Seven)7 reported cases, three(3) were new maters outstanding as at 31 December 2015 received within Q2 Resolved matters 0

Matters outsourced for specialized 2 Two(2) matters currently under investigation by the service investigation provider through the City investigation Unit since Sept and the investigation is nearing finalization stage

Matters referred to COJ 1 One (1) Matter referred to GRAS but no progress has been received to date. Matters with Internal Audit 4  Three (3) matters still under preliminary investigation by the Ethics Committee with the capacity constrains challenges being encountered and GRAS requested to assist and engagements are in progress.  One (1) matter is in a process of being outsourced with the specification for procurement of service providers being finalized.

A summary of the alleged fraud cases reported during 2015/16 is attached as Annexure J to this report.

2014/15

A total of fourteen (14) fraud allegations were reported during 2014/15 financial year. Nine (9) was resolved and five (5) remained unresolved as at 30 June 2015. Progress to date on the five (5) unresolved allegations within quarter 2 is as follows:-

Progress No of Comment matters raised Total number of reported matters 5 None outstanding as at 1st July 2015 Resolved matters 0 None

Matters outsourced for specialized 1 One (1) matter, procurement process has been finalized with investigation the appointment letter signed by the service provider and Legal Services Unit is currently busy with the development of the SLA prior to the commencement of the investigations Matter referred to SAPS 1 One (1) case that was referred to SAPS Anti-corruption unit remain outstanding, with continuous follow- ups being conducted and minimal feedback received. Matters with Internal Audit 3 Three (3) matters still under preliminary investigation by the Ethics Committee.

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Fraud awareness presentations:

A total of four (4) presentations were conducted to JRA employees during quarter 2.

Challenges:  Delays in finalization of the SCM processes for outsourcing of forensic services.  Capacity constraints of the Ethics Committee to conduct preliminary investigations and lack of dedicated resources to coordinate the forensic investigation since the removal of the function from Internal Audit.  Delays from the Group Forensic Unit to initiate the investigation process due to procurement process.  Delays in the finalization of the Service Level Agreements prior to commencement of the investigations.

Remedial actions  The Ethics Committee to assist with the preliminary review of allegations.  In the Interim Internal Audit is assisting JRA Management with the coordination and handling of forensic investigations and allegations.  Management investigating the movement of the forensic functions to be an independent function.  Investigation of a dedicated interim resource to handle investigation cases in progress with the engagement with the City Investigation Unit held and agreement reached to assist JRA with investigations however capacity constrains remains a challenge for them as well.

2.7 Corporate Ethics and Organizational Integrity

Refer Sustainability Report (2.8)

2.8 Sustainability Report

2.8.1 Background

The Board has considered the best format for a Sustainability Report. Given the mandate of the Social and Ethics Committee, together with its need to report to Shareholders, it is the view of the company that the issues of sustainability, stakeholder engagement and the report from the Social and Ethics Committee to Shareholders are best incorporated into one report from the Chairperson of the Social and Ethics Committee. The City of Johannesburg has clearly communicated its commitment to long term sustainability and the JRA fully endorses this position. Such long term sustainability is a major challenge facing not only the City and the JRA but the world at large. The need to foster development and deliver citywide services is paramount but cannot be undertaken without consideration for our environment. The JRA is committed to supporting the position of the City in this regard through senior management leadership, inclusion of sustainability as a consideration in our strategic approach and operations and the development of transparent and accurate reporting mechanisms to ensure we are able to monitor our progress. The concept of sustainability, and what it means for the JRA, remains something which the company is still grappling with. We have identified the need for the development and implementation of a number of processes and procedures which will support and measure our performance against sustainability objectives. We acknowledge that best practice dictates that we adopt the Global Reporting Initiative (GRI) list as the basis for our reporting template. The JRA is not yet able to report against these standards, however, in line with current MFMA reporting requirements we have reported against a number of the

28 | P a g e required indicators in terms of our performance reporting (see Chapter 3). We have completed the development of a GRI reporting format and implementation has commenced. 2.8.2 Oversight Structures The Social and Ethics Committee operates in terms of approved terms of reference and has discharged its mandate in terms of both the legislation and the said terms of reference. The oversight of sustainability, and stakeholder engagement, are two of the functions delegated to the Social and Ethics Committee by the Board. The Committee reports to the Board quarterly and is required to report to Shareholders annually, and to answer questions at the annual general meeting. A quarterly Stakeholder Engagement Report is submitted to, and considered by, the Board. Neither the JRA, nor its auditors in the form of the Auditor-General, are yet at a point where any of the items in the Sustainability Report can be externally assured. This is an aspect of sustainability reporting which will have to be developed within the public entity environment 2.8.3 Material Aspects of Sustainability

The primary areas of sustainability that the JRA has considered are:

Community Customer Employees  Enterprise Development (SMMEs)  Customer Charter Standards  Excellent health and safety  B-BBEE  Excellent employer  Environment (Green Economy)  Fraud and corruption

2.8.3.1: Community The areas of Enterprise / SMME Development and the support of BBBEE (cross refer to 2.12 below) remain a primary focus of the JRA and are in line with the City‟s Growth and Development Strategy 2040, which is summarised in Chapter One of the report. Projects are awarded through the Supply Chain Management tender processes but are geared towards supporting entities which meet the legislated B-BBEE requirements. The company is also very aware of the need, and benefits, of identifying, developing and supporting SMMEs. As far as is possible both SMMEs and cooperative organisations (Coops) are incorporated and it is the intention of the City to empower citizens and grow partnerships through community based service delivery models. Payment of service providers within the required 30 days of invoice as required in terms of the legislation pertaining to state entities continues to be strictly monitored and remains a priority for the company. Jozi@Work has been implemented through existing initiatives that commenced in the previous financial year. A total of 53 SMME‟s were appointed and 778 jobs created and a total amount of R25,292 734,25 million has been committed during this quarter. It has been reported previously that there are challenges in meeting the Customer Charter set standards. The appointment of these companies will assist in meeting the set turnaround times as stipulated in the charter thereby improving in service delivery. In parallel, the process of appointing a supplier for alternative products (Manhole covers) has commenced. The contract was awarded in September 2015. The challenge pertains to the manhole covers and drain covers being vandalised / stolen / sold is persisting. In as much as steel is durable and strong it has proven to be a challenge to continue using products made of steel. To mitigate this challenge, JRA is sourcing alternative material through procurement processes that are environmentally friendly and has no resale value.

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The company has subscribed to the City of Johannesburg‟s approach to the environment, specifically the “Green Economy” and in this regard the JRA has acquired equipment which will allow for the recycling of road surface material. The facilities department has also implemented a number of initiatives that will reduce the carbon footprint of the company through efficient energy utilization and recycling of paper. On a macro level the JRA is supporting the City‟s integration of transportation policies to promote green mobility. This includes the development of the corridors of freedom and the prioritization of public transport, as well as bicycle and pedestrian transport, through the complete streets programme. Stormwater management interventions through the conversion of open drains, the expansion of the capacity of the current systems, the upgrading of old infrastructure and local master planning also support the green approach to City management and development. The JRA is not excluded from the scourge of fraud and corruption. The tender processes are in line with the requirements of National Treasury. The Supply Chain Management (SCM) department has been capacitated and the executive management team continues to exercise strict oversight thereof with the centralization of procurement. The contracting processes of the company are functional and the accounting officer has reserved certain authority to himself in this regard but in line with the MFMA. During the previous financial year, the Code of Ethical Conduct policy as well as the establishment of a Management Ethics Forum and the appointment of an ethics officer was finalised. The Disciplinary Code was reviewed during the 3rd quarter of 2014-15. All municipal employees, including those of Municipal Entities, are bound by the Code of Conduct as set out in Schedule 2 of the Municipal Systems Act No 44 of 2003, and since last year a concerted effort has been made to ensure that all employees formally declare any interests they have in entities doing business with the municipality and, where such conflict exists, they must obtain written consent thereto. Employees may not accept gifts or donations nor engage in work outside that for which they employed by the JRA. Training in this regard was undertaken last year and the Code is strictly applied. The JRA has taken the approach that it has zero tolerance for any form of fraud or corruption.

2.8.3.2 Customer The Customer Charter is the agreement between the JRA and City and regulates delivery of services to the citizens of Johannesburg. The JRA performance against this charter is set out in detail in Chapter 3 of this report and the reader is referred to that section of the report. The attainment of the customer charter standards remains an on-going challenge for the JRA. Interventions in respect of service delivery at a regional level are on-going. The JRA is embarking on an international benchmarking study to assist with the benchmarking of such service standards. The outcomes of this study will inform future negotiations and agreements in respect of service standards. Third party liability insurance is in place through the City of Johannesburg. A separate function exists within the legal department to deal with claims which are logged, investigated internally and then submitted to the insurers via the brokers. Typically claims relate to personal injury as a result of accidents predominantly suffered by pedestrians and damage to motor vehicles as a result of potholes and damage to JRA infrastructure.

2.8.3.3 Employees The JRA‟s human capital management approach is to attract, develop, maintain and retain a professional, competent and diverse workforce committed to transforming the JRA into the best roads authority.

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In the area of Occupational Health & Safety, the business is committed to keeping the number of injuries to the minimum. A Health and Safety committee has been established and is meeting on regular basis. JRA has entered into partnership with the CoJ Emergency Medical Services with the purpose of facilitating training requirements of JRA staff at a reasonable cost. Training modules presented are (a) First Aid, (b) Health & Safety and (c) Fire Fighting. Parties have signed a Memorandum of Agreement to this effect. Corporate service conducted the surveillance on emission at the Asphalt plant & the subsequent report was submitted to the Executive Management Team for their consideration. The report has demonstrated non-compliance on the emission levels; remedial action plan has been developed and is being implemented. The plan also addresses the risk of the operating license being revoked. Leave management remains a matter of serious concern as it is being managed manually. This exposes the business to the risk of misstatements and financial losses. The business is however in the process of automating leave management, time management linked to the payroll through SAP and Biometric system. This should significantly enhance control measures in the business and sufficiently mitigate the current risks in this area. As an interim control measure, leave books are being checked for compliance weekly & input of leave information onto the JDE system has been centralised to the Head Office. This should significantly help to enhance financial data that is being transmitted to Finance unit.

2.8.4 Stakeholder Engagement The Board approved the Stakeholder Management and Intergovernmental Framework last financial year. The dedicated position of Manager Stakeholder Engagement and Inter-governmental Relations continues to exist within the office of the managing director. Each region has a Regional Operations Manager (ROM) who is the interface between the community and the JRA as well as between the political heads at a community / regional level. The JRA operates within the framework of the Municipal Systems and Structures Acts and as such reports to the City of Johannesburg quarterly. The Chairman of the Board meets with the MMC (Municipal Councillor) on a quarterly basis to address any issues of a service delivery nature. The JRA regularly receives, and replies to, questions from the Section 79 Portfolio Committee. This is a Committee of the Municipal Council established in terms of the Municipal Structures Act. The Committee is accountable to the Council and has an oversight role. It is made up of councillors from various political parties. The Committee has no decision making powers and can only make recommendations to Council. It is the intention of the JRA to move to a point where it is able to report on a Regional, and Ward basis as regards service delivery and capital projects. Already, all departments in the JRA have been handed their accountability processes in terms of Stakeholder Management & IGR Framework, and monthly reports are developed for the purposes of tracking progress and managing risks. IGR engagements are in place and there are significantly improved relations with other spheres of government such as the Gauteng Transport and Roads as well as the National Department of Transport. Quarterly meetings on, inter alia, Roads Construction Bodies and the related matters, are being held.

2.8.5 Ethics The establishment of the Social and Ethics Committee was partly in response to the implementation of the Companies Act of 2008, which in turn legislates aspects of the Committee mandate. The terms of reference of the Social and Ethics Committee were reviewed during 2014-15.

The issue of ethical behaviour is a topical one amongst most state owned entities, with the JRA being no exception. The Social and Ethics Committee oversees the issue of ethics and the process to

31 | P a g e ensure that ethics are embedded in the corporate culture of the Company is in place through an approved Code of Ethical Conduct, Management Ethics Forum and the appointment of an ethics officer. The provisions of the Municipal Employees Code of Conduct are being strictly managed and enforced. The Code includes provisions relating to conflict of interests, handling of confidential information, entertainment, use of company services and property and the receiving of gifts. The JRA operates a gift register and all staff members are required to disclose gifts received. All Board and Committee meetings commence with a declarations of interests. Breaches of the Code of Ethics, as well as other matters of impropriety, may be reported through access to the Whistle Blowing hotline by all stakeholders. The JRA is committed to working against corruption in all its forms, including nepotism, extortion and bribery. An externally managed Whistle Blowers facility hotline is in place and all matters reported through the hotline are brought to the attention of the Audit and Finance Committees.

2.8.6 Statutory Obligations The Group has a formal disclosure in terms of the Promotion of Access to Information Act, 2000 in terms of which requests for information will be entertained by the company. Issues are also raised through the office of the Public Protector. All statutory information required to be published in terms of the legislation applicable to the Group, all requisite submissions and all requests for information, have been fully complied with, although the required information to be published on the company website still remains a work in progress. As part of the compliance process a detailed compliance report is reviewed by management monthly and is submitted to the various Committees and the Board quarterly. The Governance Report (Chapter Two) has been reviewed by the Social and Ethics Committee. Aspects of sustainability, including, but not limited to, staff, training and employment equity issues are addressed in detail in the Human Resources Report and are not replicated in this report, and should be read in conjunction herewith. The JRA welcomes any feedback on its sustainability practices and in this regard please contact our company secretary whose details are listed at the end of the integrated report.

2. 9 Anticorruption and Fraud

Please refer to Fraud Prevention Plan (Section 2.6.1)

All the allegations received are either being investigated internally (preliminary investigations0 or referred to either to GRAS or an external service provider for further investigation. Progress reports on matters are presented monthly to the Executive Management Team, quarterly to the Audit and Finance Committee. Any matters requiring the attention and oversight of the Board are highlighted through the Audit and Finance Committee report to the Board.

2. 10 ICT Governance The JRA does not have a Chief Information Officer and the IT department is managed by the IT Manager on a day-to-day basis. The IT Department reports the HOD: Performance, Governance & IT who reports formally to the Risk and IT Committee on a quarterly basis.

During the 2014/15 period the Board approved the IT Governance Framework which takes into account the legislative framework, including King III, as well as the International Organisation for Standardisation / International Electro-Technical Commission 38500 (ISO /IEC 38500) and the Control Objectives for Information and Related Technology (COBIT). This has assisted towards the

32 | P a g e objective of institutionalising ICT governance as an integral part of corporate governance within the company.

Interrelated references of IT Governance Framework

The implementation plan in respect of the approved framework is being developed. It should be noted that further changes to the framework by the Treasury department are anticipated which will specifically be directed at Municipalities and the company will need to respond in this regard as and when the changes are finalised.

An “as is” maturity self-assessment of the organisation against COBIT had been undertaken indicating some improvements required. An external maturity assessment would be undertaken during 2015/16 with the company in the process of a five year turn around process, including the implementation of SAP. A further assessment will be undertaken after the implementation of SAP and then again at the end of 2017. The framework envisaged that the company would be COBIT compliant and implementation would ensure a structured system of reporting.

During the quarter, various IT matters served at the JRA‟s Risk and IT Committee (RITC) these being considered for approval by the Board at its next meeting. These include:  IT Governance Maturity report;  IT Security Policy Changes;  IA IT General Controls  ICT Report

An IT Governance maturity assessment was completed in July 2015 and served in the RITC in September 2015. From the findings a list of recommendations was put forward in a form of a 24 months roadmap. Currently the recommendations are being aligned to the NT guidelines and to provide budgetary requirements. Key to the findings is that IT needs to play a more strategic role in the organization, enabled by the appointment of a CIO and also a Governance Champion (project manager) to support the implementation of the roadmap.

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2.11 Compliance with Laws & Regulations The company has appointed a compliance officer and has an approved Compliance Policy. It should be noted that as a wholly owned company of the City of Johannesburg the JRA is subject to a wide range of legislation peculiar to government entities, in addition to that applicable to companies. As such compliance remains a core focus for the company and the JRA strives to ensure that the company is able to meet compliance requirements in terms of major legislation as well as standards, codes and rules associated with our industry. A detailed monthly compliance report is considered by the executive management team and submitted quarterly to the Remuneration HR and Social & Ethics Committees, which in turn reports to the Board. As part of the Compliance Policy the JRA also measures its compliance with King III, and, for purposes of transparency, we report that there remain a number of areas of non-compliance, which include areas primarily relating to corporate citizenship, succession planning and external assurances on sustainability. Currently the compliance process is manual and includes the actions set out below: a. Identifying the laws and regulatory obligations that are applicable, including the non-binding rules and standards to which the company wishes to comply through a process of continued on-going monitoring of all new legislation and standards as published in the government gazette and by selected bodies; b. Ensuring that the board members understand the requirements and are updated on the changes. This is accomplished by the monthly updating of the Compliance Checklist which is submitted to the Board at all its formal meetings, at least quarterly; c. Implementing a comprehensive compliance process and regularly monitoring compliance to the process through the governance structures and inclusion on the board agenda which may be via reporting from the Audit and Finance Committee; d. Managing compliance risk through the risk management process which includes the necessary tools to detect, report and manage compliance risks; e. Embedding compliance in the operations and processes, ethical conduct and culture of the business/organisation; f. Appointing a compliance officer and establishing a compliance function to assist in the management of compliance; and g. Disclosing how effective compliance has been achieved through a standard compliance report which is updated monthly.

It is the intention of management to investigate compliance software options during the 2015/16 financial year however the implementation of same will be subject to available budget.

Previously during Q1, the following areas were identified for further action and follow up:

Relevant Act / Section Activity Status Occupational Health and Ensure execution, in particular, that a safe and Significant compliance envisaged by Safety Act No. 85 of hygienic working environment is maintained and March 2016 1993 that the Act is displayed in the workplace. Promotion of Equality Ensure that requirements are met and that JRA Action plans being developed to ensure and Prevention of Unfair Code is adhered to. significant compliance by March 2016 Discrimination Act No.52 of 2002 Financial Intelligence All service providers FICA‟ed Part of tender process – confirm that Centre Act, No 38 of FICA is complied with

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Relevant Act / Section Activity Status 2001 National Archives and Ensure there is a records management system In progress – completion March 2016 Records Services of and documents are stored in the manner, and South Africa Act for the required time frame, as per legislation National Road Traffic Transportation of dangerous goods as classified The Fleet and Plant is busy rolling out Act 93 of 1996 and in terms of SABS code of practice (SANS compliant trucks until 30 September chapter VIII of National 0228:2012); 2015. Road Traffic Regulations of 2000 Waste Act 59 of 2008 Waste Act 59 of 2008 – Regional Depots to Development of action plan store waste in compliance with the Waste Act. Air Quality Act 39 of Asphalt Plant compliance with Air Quality Act Development of business plan to address 2004, challenges and non-compliance

Environmental Asphalt Plant is non-compliant Development of business plan to address Regulations in relation to challenges and non-compliance Asphalt Production and Transportation; Road Maintenance and Road Construction S 111 SCM Policy and implementation thereof Approved and implemented

Management did not adequately monitor action plans to address internal control deficiencies identified in the prior year. As a result a number of non-compliance issues have recurred over expenditure management, supply chain management and human resources. Lack of adequate monitoring and review of compliance with the MFMA regulations especially relating to supply chain management.

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CHAPTER THREE SERVICE DELIVERY PERFORMANCE

3.1 Highlights and Achievements 3.1.1 Performance against Company Scorecard The JRA 2015-16 Business Plan takes into consideration the outputs of Mayoral Lekgotla and details the company‟s priorities and objectives in delivering services in accordance with the City‟s strategic and development priorities as set out in the Growth & Development Strategy (GDS2040), the Integrated Development Plan (IDP) and also the City‟s 9 +1 priorities. In support of these strategies and key priorities, the JRA in taking its Strategy 2017 as well as the 3 year zero based budget process into consideration, developed its key priority programmes for 2015/16. The plan best reflects programmes and focus areas of the company. The 2015-16 Business Plan includes both the CAPEX and OPEX Key priority Programmes. These set out the JRA‟s deliverables for 2015-16 in terms of the plans in the Service Delivery Budget Implementation Plan (SDBIP). The JRA‟s budget allocation remains high in comparison with the 2013-14 budget allocation. Over the past 2 financial years the CAPEX budget increased significantly which has had an effect on the Company objectives and thus the Company Scorecard.

The key priority programmes as identified in the 2015 / 16 Business Plan and associated SDBIP contain a total of 146 related projects. This includes the Community Based Projects (CBP) activities (13 in all).

If all project / activities are included in the JRA 2015-16 Company Scorecard, then a total of 146 Kpi‟s would be incorporated in the annual scorecard for monitoring and performance reporting purposes.

Given the challenge of developing a Company Scorecard for 2015-16 that is both practical and addresses the legislative requirements, it was agreed that:

 The practice of combining Kpi‟s into rational groups at a high level be dispensed with due to cumbersome reporting and lack of transparency;

 Where possible, performance relating to key priority projects is incorporated into the company scorecard with the remainder being migrated to HOD level Kpi‟s. The JRA has 8 core areas over which work stream programs have been divided in terms of the 2015- 16 scorecard. These include:  City Priority Programmes;  Roads Management;  Bridges Management;  Stormwater Management;  Mobility Management;  Internal processes;  Finance Management;  Governance. In order to limit the number of Kpi‟s on the company scorecard, it is proposed that key Kpi‟s be incorporated in the company scorecard with the remainder being migrated to a lower level. In order to prioritize Kpi‟s, activities are divided into 3 levels, these being:

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Level 1 City Priority programs, Key Performance Company Scorecard, Objectives, High CAPEX budget allocation, MD Scorecard „concrete‟ deliverables Level 2 Planning / preparation related activities, HOD Scorecard Low CAPEX budget allocation Level 3 Minor related activities, Day-to-day related Ops Manager Scorecard activities

Following the above principles, the JRA Company Scorecard 2015-16 has been structured as follows:

Program No of high level Kpi’s City Priority program:  Customer Charter (7);  Program 1:  Corridors of Freedom (3) 22  Community Based Programmes (12)

 Program 2 Roads Management program 20

 Program 3 Bridge Management program 6

 Program 4 Stormwater program 10

 Program 5 Mobility Management program 15

 Program 6 Internal processes 4

 Program 6 Finance Management 5

 Program 8 Governance program 3 Total 85

The JRA 2015-16 Company Scorecard was approved by the Board at its meeting held 30 September 2015.

Level of Performance; Key to indicators:

Target achieved (at least 75% rating)

Target partially achieved (at least 50% rating)

Target not achieved (< 50% rating)

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Company Performance: Quarter 2

The AOPO performance attained by the JRA for the 2nd quarter 2015-16 is 86, 98 %.

The Mid-Year (YTD) performance attained by the JRA is 85, 85%

Q2 Performance across respective programmes is summarised below:

Program Description Q1 Q2 Programme 1 City Priority Programme 83,9 % 86,3 % Program 2 Roads Management program 94,8 % 87,6 % Program 3 Bridge Management program 100 % 100 % Program 4 Stormwater program 98,18 % 91,.4 % Program 5 Mobility Management program 92,12 % 85,8 % Program 6 Internal Processes 82,77% 83,6 % Program 7 Finance Management 88.7 % 78,7 % Program 8 Governance program 100% 77,9 %

Summary No Q1 Q2 Q3 Q4 Annual Number of KPI‟s 85 90.9 % 86.98 %

The performance attained against predetermined objectives as at the 2nd quarter is detailed on attached Annexure D to this report.

3.1.2 Regional Operations Department The Regional Operations Department have achieved the following (quarterly and year to date):- During the 2nd quarter, the department continued to implement activities related to road infrastructure repairs and maintenance, bridge maintenance and storm water repairs and maintenance. These activities continue to support the implementation of the JRA‟s activities as described in the Business Plan. Additional activities completed during the 2nd quarter include the following: (i) As a result of investment in road rehabilitation through the resurfacing programme, the JRA anticipated a reduction in the number of potholes repaired during the quarter. During the quarter a total of 15,247 potholes were repaired against a quarterly target of 25,544 potholes. This reflects a 41% fewer potholes repaired against an anticipated 10%. (ii) During the 2nd quarter, progress on road rehabilitation activities was as follows:- o Deep Patching: 6368 m2 against target of 6800 m2 (93.6%); o Skin Patching: 3890 m2 against a target of 4400 m2 (88.41%); o Milling: Due to the lack of suitable machinery, 0 L/Km of Milling was completed against a target of 2 L/km (0%):

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o Crack Sealing: 15820 Kg against a target of 13,200 Kg (119.85%)

During the 2nd Quarter a total of 20 552.77 tons of Asphalt was produced against a target of 25 000 tons  Internal supply : 20 490.09 tons  External Sales : 62.68 tons

During the quarter the asphalt plant experienced 152 hours of downtime as a result of the following, amongst other reasons (27.5% of available time):  Managing Director‟s road show;  SAMWU strike  Power cut due to cable theft  Employees health screening

3.1.2 Planning Department

I. Strategic Planning

The second quarter has mainly been about hand over of projects for implementation, finalisation of procurement of the required services, midterm budget reviews, and preparation for the 2016-2017 financial year.

From a strategic planning perspective, the planning meetings for the Jozi Strategic Information Platform (JSIP) submissions were held with all the internal stakeholders. These meetings culminate in the finalisation and submission of a consolidated JSIP list which is the backbone of our CAPEX budget submission to the COJ. The first one on one meeting JSIP meeting with the City was held on the 18 September 2015. Two more such meetings are scheduled for later on in the year. The Company‟s SDBIP was also finalised and approved by the SDC of the Board.

Overall, the Department is on track to deliver on its mandate in the 2015-2016 financial year.

II. Development Control (Private and Public) The Company‟s design standards were completed during Q1. The EMT granted approval for implementation of the standards at the end of Q1. Q2 marked the commencement of the implementation and enforcement of compliance with the standards. The approval of the designs is a major milestone in the history of the JRA in that since inception our depots have been used different design and maintenance standards that they brought with from their respective MLCs. This, therefore is a welcome relief to all and will assist in ensuring that henceforth our all depots and private developers follow the same standards for the designs and maintenance of road infrastructure.

Development Control (Private) (a) In this quarter, 100% of all town planning applications were completed within the 60 day period. (b) 99.6% of all rezoning applications were completed within the 28 day period. (c) 12 Site Development Plan and Building Plan submission meetings were convened with private and public developers and engineers during the quarter. (a) Development Control (Public) During the quarter, the Development Control unit continued with assessing various Township Planning applications, land use applications, scrutinising building and site development plans as well as addressing correspondence received. These are summarised as follows:-

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 In the second quarter, 100% of all town planning applications were completed within the 60 day period.

 100% of all rezoning applications were completed within the 28 day period.  6 Site Development Plan and Building Plan submissions scrutinised. 122 meetings were convened with public developers and engineers during the quarter.

III. Roads and Storm-water Planning

The Roads and Storm-water unit completed the planning components and handed over four projects to the JRA‟s Infrastructure Development department for implementation. A further six projects are still at various procurement stages.

a) Storm-water Master Planning For the 2015-16 financial year, focus is being placed on the completion of Storm Water Master Plans (SWMP) in the following areas:  Fine Town and Ennerdale South – SMP.  Ebony Park – SMP.  Weilers Farms and Sweetwaters – SMP.  Carlswald – SMP.  Chartwell – SMP.  Zandspruit – SMP.  Western Quadrant of Region D – SMP.  Devland – SMP.

A service provider has been appointed for the development of Stormwater Master Plans and work commenced during the quarter. As at the end of the quarter, the following projects were handed over to the JRA‟s Infrastructure Development Department for implementation:

 Ballyclaire: Widening of the road  Oustpan road: widening of the road  Spencer Rd: extending the road  James Str: extending the road  Conrad Bridge: widening

b) Corridors of Freedom: The stormwater master plan for all three corridors of freedom was completed during the 2014- 15 financial year. During Q1, the specification preparation for the appointment of professional services for the development of Preliminary Designs, Detailed Designs Report, Water Use Licence application and EIA application commenced.

A different procurement process is under consideration for the implementation component of the project.

IV. Road Asset Management Systems

After completing the planning aspects our Roads Asset Management Systems, the unit handed over various bridge rehabilitation projects to the JRA‟s Infrastructure Development department for

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implementation. Furthermore, implementation planning on the Pavement Management System (PMS) was completed and the JRA‟s Resurfacing and Rehabilitation schedules were handed over to the Roads Resurfacing Depot (RSD) for implementation. The unit continued with the finalisation of the GIS project which is one of our flagship projects in the organisation.

From a procurement point of view, the following contracts are still in the procurement process for appointment of service providers:  Visual Condition Assessment of roads;  Sidewalk Management System in order to complete the remaining regions;  Stormwater Management System in order to complete the remaining wards;  Detailed Inspection of the Bridge Expansion Joints.

Strategic Planning

In this quarter the following activities were undertaken from a strategic planning perspective:

 Business Plan workshop with the Board;  Midterm budget adjustments for all Capex  First draft business plan  Strategy monitoring  JSIP Capex input  Finalisation of the SDBIP 3.1.3 Mobility & Freight During the 2nd quarter, the Mobility & Freight Department achieved the majority of the operational KPI‟s relating to Traffic Signal maintenance and Traffic Engineering. Traffic Signal Maintenance recorded the following performance during the 2nd quarter:  A total of 76 safety investigations were completed against a target of 75 (>100%). These investigations are carried out in response to community requests as well as internal hotspot analysis; Year to date the department has completed 236 investigations against a target of 150 (>100%)

 During the quarter, 99 Traffic Impact Studies were completed against a target of 90 (>100%); Year to date the department has evaluated 199 studies against a target of 160 (>100%)

 61 signal phasing‟s designs were revised during Q2 against a target of 60 (>100%); Year to date, 120 revisions were completed against a target of 100 (>100%)

 17 petitions were received during the 2nd quarter and all have been attended to. Year to date 25 petitions have been investigated with no outstanding petitions.

3.1.4 Infrastructure Department The Capex Programme comprises rehabilitation, reconstruction, new construction and upgrades of various road and storm water infrastructure projects. The implementation of work, enhanced with numerous service providers, focuses on executing work as planned. The accomplishments of the second quarter include the appointment of various service providers for the execution of projects, where possible, the continuation of projects requested on a multi-year basis.

Current capabilities allowed the implementation to offer more benefits, Infrastructure Development

41 | P a g e procured the Project Management System (PPO). The system enables project managers to manage a project through its entire lifecycle from the pre-planning stage through hand over to JRA maintenance. The training was offered to the ID team and the utilization of the system commenced in quarter two.

The contractor‟s cash flow challenges negatively impacted mainly gravel roads upgrade projects in certain areas, local labour strikes incurred due to disagreement in local labour rate offered by the JRA The Small Micro-Medium Enterprise (SMME) appointment and late payment by main contractors delayed construction in certain areas. The involvement of all stakeholders vastly assisted in ensuring that challenges were resolved timeously to ensure constant work execution.

Due to the service providers, specifically contractor‟s break, the performance for quarter two reports was measured from 01 October 2015 to 15 December 2015. The early closing of performance was motivated by the unavailability of contractors to execute work between the period of the 18th to 31st of December 2015.

Gravel roads Construction activities continued from the previous financial year appointments in all eight areas (Bramfischerville, Diepsloot, Thulani / Doornkop, Ivory Park, Orange Farm, Lawley, Tshepisong and Protea South). The professional services tenders for three additional areas in the Gravel Roads programme were evaluated in the second quarter. These new areas include Mayibuye/ Commercia, Slovoville, Kaalfontein and Poortjie. The professional services tender for Thulani/ Doornkop was awarded and work commenced as planned. The bid specification document for Drieziek was approved for construction tender advertisement.

Bridges In respect of the bridges programme, the following progress can be reported for the period under review:  The overall construction on Naledi Bridge progressed well, Eskom relocated a 132KV cables and construction resumed as planned.  In respect of the Bridge Inspections programme, during the 2nd quarter, a service provider was appointed and work commenced with required bridge inspections. During the quarter, 21 bridges were inspected against a target of 133 .

 Construction of motorway gantries was completed; the total of four gantries targeted for the year were replaced in quarter one and two.

 Bridge Rehabilitation contractor was appointed and one bridge in Eeufees Road in Florida, Region C was rehabilitated.  The piling continued with the approval of additional piling for the construction of three bridges in Soweto (Nxumalo, Kinini and Zulu).  The evaluation of construction tenders for pedestrian bridge projects in Kaalfontein, Klipspruit West, Slovo Park and Diepsloot West continued in quarter two.  Investigations for designs of Jabulani / Molapo Bridge and Conrad proceeded in the second quarter.  Professional services tenders for River Park and Ivory Park bridges were evaluated.

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Stormwater Stormwater projects proceeded in Q2 with projects at various stages. Progress against these projects is reported as follows: - The construction tender for Protea Glen was advertised and closed for evaluation. - The Urgent and Critical Storm Water programme consists of projects which are at various stages of completion. Seven projects at contractor procurement stage, seven projects at construction stage, and two projects are at Design and Documentation phase, two projects have been completed. - The Conversion of Open Channels programme is in progress, with one project at construction stage (Bram Fishersville). The Orange Farm construction tender closed for evaluation the second quarter. The Ivory Park construction progressed as planned. - Braamfontein Spruit and Klein Juskei Ferndale catchments were evaluated for professional services tenders. The construction tenders for Fourways Dam, Catchment Mogaseview and Robinson Canal were approved for construction. - The detailed design for construction of Klein Juskei Catchment Willows Development proceeded in the second quarter

Mobility (Roads) City Deep has 6 sub projects, SANRAL is implementing the projects on behalf of JRA. The contractor was appointed and construction work commenced for Rosherville Road and Bonsmara Bridge. Complete Streets projects are being implemented in six areas (Braamfisherville. Diepsloot, Ivory Park, Alexandra, Orange Farm and Soweto). The contractor was appointed for Diepsloot and Orange Farm. The construction tender for Ivory Park and Soweto were evaluated in the second quarter. Bram Fischerville construction tender was advertised and Alexandra, Wynberg bid specification was compiled. Geometric Improvement projects consist of various intersection improvements throughout the City. The construction tender for Constantia Kloof was approved for advertisement and intersection improvements along Crownwood Road bid specification document was compiled. M2 Motorway at Main Reef Road Intersection construction tender was advertised.

Road Surfacing The roads resurfacing programme continued in all Regions of the City and executed by the JRA‟s Road Surfacing Department augmented by appointed contractors. A total of 186 Lane Km against a quarterly target of 228.13 Lane Km were resurfaced during the second quarter City Wide. A total of 296 Lane Km against a target of 304.17 lane Km for the mid-term target were resurfaced.

M1, M2 and Soweto Highway The M1, M2 and Soweto Highway projects are being implemented in partnership with SANRAL. The consultant was appointed for M1, M2 and Soweto Highway for the detailed design of rehabilitation works. The contractor for urgent repair work on Double Decker Bridge was appointed by JRA during the 2nd quarter. The contractor for Oxford and Federation was appointed by SANRAL, site camps were established and construction work commenced during the quarter. Road Reconstruction and Rehabilitation Construction is in progress for Phase I of the project as implemented in Mayibuye, Region A, B, C, D, E, F and G in the 2014/15. Anticipated completion dates are as follows:

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Phase I:  Regions A&B – 31 March 2016  Regions C&D – 29 April 2016  Regions E&F – 15 January 2016  Region G – Complete  Mayibuye – 20 July 2016

Phase II: The contractors have been appointed for Region G, D and F. The construction tenders for region A, B, C and E closed in May and June, the tenders were evaluated in the second quarter.

Road Network Projects Westlake Road Extension project is being implemented in partnership with CoJ Housing Department. Construction work is complete for the current year (2015/16). Construction tender for Le Roux Avenue Widening closed and was evaluated in Q2. From a traffic signal capital infrastructure perspective, the following was achieved during the second quarter: o 5 Traffic Signal intersections were installed with CCTV cameras against a target of 3; o 75 traffic signal intersections were installed with Remote Monitoring Devices against a target of 60; o 34 traffic signals fitted with adaptive control devices against a target of 25; o 0 new warranted traffic signals against a target of 0; o 57 Traffic Signal intersections were re-cabled against a target of 30; o 38 traffic signal intersections were upgraded to SARTSM requirements against a target of 20,; o 101 controllers were upgraded against a target of 100; o Procurement of the Traffic Management Centre screen commenced; o 95 Alternative Energy Alternative Power Sources (LED) related hardware were installed against a target of 95; o Delays in importing the required batteries for the Uninterruptible Power Supply units (UPS), no UPS were installed in the quarter against a target of 40. However, all materials has now been received and the installation of the UPS‟ is due to commence during the 1st week in February 2016.

3.2 Service Delivery Challenges

The challenges in quarter two (2) for regional operations were as follows, but not limited to:

 Availability of asphalt,

 The depletion in human resources capacity remains an ongoing challenge,

 With capacity challenges the teams require double time to address service requests therefore regions are scheduling overtime. It is expected that the implementation of Jozi@Work will provide the necessary assistance to improve performance,

. System change management (Hansen 8/JDE change),

. Inclement weather with the heat wave that is currently experienced.

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Some other challenges encountered by the company include: . Poor operational planning and labour issues, . Late appointment of consultants (detail design), . Poor depot performance monitoring and evaluation skills.

3.3 “Game Changer” programmes

The CoJ established The Communication Lab to enable the City to implement activities that will improve: a) the awareness and appreciation by the citizens regarding the activities and services of the city; and b) the trust and confidence in the CoJ by its citizens based on real service delivery experiences and perceptions.

Based on the latest Quality of Life survey the main issue driving communication seemed not to really be only about service delivery although that remains an area of concern. The issue is that generally people seem to have variant but mostly low perception of the city despite improved service delivery.

The main outcome of the Lab was to enable the city to be projected as a Caring City that is Responsive to the Needs and Future of its Citizens. And furthermore, the Lab was intended to assist the city to close the gap between the Perceptions; Trust and Confidence people have in the city and Actual Experiences. This would be done to enhance the overall message of the city which is “A City @ Work”.

Communications was agreed as the most important Game Changer and a need for a Radical Shift in how communications is conducted within the city was identified.

In response to this requirement, the JRA identified 4 Game Changer Programmes being:  Customer & Citizen Relations – Find & Fix  Customer & Citizen Relations – Regional Stakeholder Engagement  Branding & Advertising  Improved Perceptions

Progress in relation to these programmes during the 2 nd quarter is noted as follows:

Game Changer 2015/16 Target Progress – Q2

Customer & Citizen Relations Grow registered users to 20000 Number of registered users 12822 – Find& Fix and issues logged to 40 000 Issues logged since launch of application = 52337. This includes duplicated service requests. During Q2, a total of 604 service requests were received via the Find & Fix application.

Customer & Citizen Relations 7x exhibitions and conferences, Exhibitions: – Regional Stakeholder 3x Exhibitions in October 2015: Engagement • Transport Information Desk was set up at UJ for information sharing as well as for promotional items distribution and the event was a success; • Road Safety Family day was also part of Eco mobility activities and the JRA in partnership with Kaya FM,

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Game Changer 2015/16 Target Progress – Q2 SANRAL, DOT, Transport successfully hosted the event; • IMESA Exhibition and Conference held in Cape Town was a success and 4 representatives from the JRA attended the conference and exhibitions.

1x Exhibition in November/December 2015  The City of Johannesburg successfully hosted the Africities Summit The summit is held every three years and looks at issues affecting urban and economic development in African cities. The theme for 2015 was “Shaping the Future of Africa with the People: Africa‟s Local Government Contribution to the Africa 2063 Vision.”

7x Regional Taxi Ranks Citizen Engagements; The JRA partnered with Transport Safety Department to create and promote safety awareness in preparation for the Festive season. The event was successfully conducted and the following Regions were covered  Region A – Boulders Mall/Taxi Rand  Region B – Randburg CBD/Taxi Rank  Region C – Main Reef and Dobsonville Mall  Region D - Jabulani Mall/Taxi Rank  Region E – Pan African Mall

1x Stakeholder briefing session was held regarding the M1 Oxford and Federation bridges rehabilitation.

• 3 x Advertorials were placed in specialised publications namely Onroute and Safe Travel under the following headings: o JRA Sets out to rehabilitate, expand and build new bridges o A Smart City and; • Stormwater water External newsletters:  Quarterly Newsletter was approved and final layout designs are underway

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Game Changer 2015/16 Target Progress – Q2

Branding & Advertising 10% increase in positive media October 2015: coverage (100x balanced/positive

articles per month):  X 54 articles published,  12 were balanced,  27 were positive and 9 negative.

November 2015:

 X 122 articles published,  58 were balanced, 12 were positive and 52 negative (a separate report on media coverage for the Flagship launch).  Traffic updates were done on both Lesedi and Motsweding FM 4x media briefings annually  Information sharing sessions was held with stakeholders regarding M1 remedial work on Oxford, Federation and Double Decker Press Release: 4x media releases:  Oxford and Federation / Double Decker was issued  JRA makes major inroads in Joburg‟s Deep South  JRA backfilling misconstrued as illegal dumping  Region G JRA Capital projects 1x customer satisfaction survey: 1x customer satisfaction survey: Improved Perceptions 1x internal employee survey  The service provider has submitted the survey instruments conducted annually. and a meeting was held on the 25th of November 2015. 1x internal employee survey conducted annually. • Internal survey- information sharing on the 2014/15 survey finding was done through the annual road show. • The next Internal Climate Survey will be conducted in the beginning of the 2015/2016 financial Year.

3.4 Performance against Service Standards The performance of the JRA in relation to the Customer Charter is summarised below. This includes progress over the 2nd quarter period as well as the year to date performance. Further detail is provided in the attached Annexure D, JRA Company Performance Report. The performance of the JRA in relation to the Customer Charter is summarised below

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Kpi Activity YTD Performance YTD Performance Year-to- Reinstatements (3 days) 79,3% date 90,0% 80,0% Potholes (3 days) 65,7% 70,0% 60,0% Traffic Signals (24 hrs) 82,9% 50,0% 40,0% 30,0% Incorrect street name spelling 50,0% 20,0% 10,0% corrected (7 days) 0,0% Missing Manhole Covers 6,3% replacement (3 days) Blocked storm water drains (3 67,1% days) Road marking lanes / signs 40,6% repaired (3 days)

The 2nd quarter performance of the JRA in relation to the Customer Charter is summarised below

Activity Period Target (%) Requests Attended within 3 % Varience (%) 90,0% days achievement Reinstatements (3 days) Q1 90% 213 101 47,4% 42,6% 80,0% 70,0% Q2 90% 372 245 65,9% 24,1% 60,0% Q3 90% 138 38 27,5% 62,5% 50,0% 40,0% Q4 90% 288 220 76,4% 13,6% 30,0% Q1 100% 292 192 65,8% 34,2% 20,0% 10,0% Q2 100% 332 272 81,9% 18,1% 0,0% Year-to- 100% 627 497 79,3% 20,7% Q1 Q2 Q3 Q4 Q1 Q2 date

Activity Period Target (%) Requests Attended within 3 % Varience (%) 100,0% days achievement Potholes (3 days) Q1 90% 2807 2471 88,0% 2,0% 80,0% Q2 90% 4122 3130 75,9% 14,1% 60,0% Q3 90% 5435 2314 42,6% 47,4% 40,0% Q4 90% 2607 1794 68,8% 21,2% Q1 100% 1574 1259 80,0% 20,0% 20,0%

Q2 100% 2406 1472 61,2% 38,8% 0,0% Year-to- 100% 4799 3151 65,7% 34,3% Q1 Q2 Q3 Q4 Q1 Q2 date

Activity Period Target (%) Requests Attended within 3 % Varience (%) 100,0% days achievement Traffic Signals (24 hrs) Q1 90% 403 358 88,8% 1,2% 80,0% Q2 90% 1085 893 82,3% 7,7% 60,0% Q3 90% 610 492 80,7% 9,3% Q4 90% 626 470 75,1% 14,9% 40,0%

Q1 100% 402 299 74,4% 25,6% 20,0% Q2 100% 489 431 88,1% 11,9% 0,0% Year-to- 100% 941 780 82,9% 17,1% Q1 Q2 Q3 Q4 Q1 Q2 date

Activity Period Target (%) Requests Attended within 3 % Varience (%) 120,0% days achievement Incorrect street name Q1 90% 5 2 40,0% 50,0% 100,0% spelling corrected (7 Q2 90% 3 0 0,0% 90,0% 80,0% days) Q3 90% 48 5 10,4% 79,6% 60,0%

Q4 90% 5 3 60,0% 30,0% 40,0% Q1 100% 0 0 100,0% 0,0% 20,0% Q2 100% 2 1 50,0% 50,0% 0,0% Year-to- 100% 2 1 50,0% 50,0% Q1 Q2 Q3 Q4 Q1 Q2 date

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Activity Period Target (%) Requests Attended within 3 % Varience (%) 35,0% days achievement 30,0% Missing Manhole Q1 90% 11 3 27,3% 62,7% Covers replacement (3 25,0% Q2 90% 7 2 28,6% 61,4% days) 20,0% Q3 90% 52 13 25,0% 65,0% 15,0% Q4 90% 30 9 30,0% 60,0% 10,0% Q1 100% 46 2 4,3% 95,7% 5,0% Q2 100% 33 2 6,1% 93,9% 0,0% Year-to- 100% 80 5 6,3% 93,8% Q1 Q2 Q3 Q4 Q1 Q2 date A contractual dispute between the service provider and the JRA in respect of Terms and Conditions in the contract for the provision of alternative products (Manhole Covers) is having a negative effect in respect of improving performance against this service standard. The dispute has subsequently been resolved and purchase orders have been placed on the service provider for the provision of alternative products.

Activity Period Target (%) Requests Attended within 3 % Varience (%) 90,0% days achievement 80,0% Blocked storm water Q1 90% 1143 907 79,4% 10,6% 70,0% drains (3 days) Q2 90% 1166 889 76,2% 13,8% 60,0% Q3 90% 936 419 44,8% 45,2% 50,0% 40,0% Q4 90% 824 495 60,1% 29,9% 30,0% Q1 100% 983 608 61,9% 38,1% 20,0% Q2 100% 1053 727 69,0% 31,0% 10,0% 0,0% Year-to- 100% 2021 1357 67,1% 32,9% Q1 Q2 Q3 Q4 Q1 Q2 date

Activity Period Target (%) Requests Attended within 3 % Varience (%) 45,0% days achievement 40,0% Road marking lanes / Q1 90% 1933 496 25,7% 64,3% 35,0% signs repaired (3 days) Q2 90% 1749 493 28,2% 61,8% 30,0% 25,0% Q3 90% 1914 250 13,1% 76,9% 20,0% Q4 90% 963 207 21,5% 68,5% 15,0% 10,0% Q1 100% 2048 862 42,1% 57,9% 5,0% Q2 100% 2398 895 37,3% 62,7% 0,0% Year-to- 100% 4678 1899 40,6% 59,4% Q1 Q2 Q3 Q4 Q1 Q2 date

3.5 Capital Projects & Expenditure Detailed Capital project expenditure is provided as Annexure C to this report

3.5.1 Capex Expenditure - summary

During the quarter a total of R 276, 296 million was spent on CAPEX projects against a quarterly target of R 353, 810 million. This represents a quarterly performance of 78, 1% in comparison with last year‟s 2nd quarter performance of 47.22%.

Q1 Q2 Q3 Q4 Total

R’ R’ R’ R’ R’

Cash Flow projections 212,286,150 566,096,400 1,132,192,800 1, 273, 716 ,900 1, 415, 241, 000 (“burn rate”) 15% 40% 80% 90% 100% Achieved 168,619,922 444,915,770

11,92% 31.43% Note: Figures above are cumulative

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3.6 Performance against Institutional SDBIP The JRA progress during Q2 in relation to Institutional SDBIP programmes is provided below

Priority IDP programme Baseline 2014/15 annual 2015/16 Annual Q2 Q2 Actual Key Interventions Progress targets Target Target OUTCOMES 2: PROVIDE A RESILIENT, LIVEABLE, SUSTAINABLE URBAN ENVIRONMENT- UNDERPINNED BY INFRASTRUCTURE SUPPORTIVE OF A LOW-CARBON ECONOMY

Transit Oriented 323.51 lane km 536 lane km of 506.96 Lane km 76.04 110.08 Resurfacing of roads Target was achieved Development - of roads roads resurfaced of roads Lane Lane Km city-wide to improve the Priority areas- resurfaced city-wide as per resurfaced Km visual condition index A total of 186 Lane Km against a Pavement city-wide as per quarterly target of 228.13 Lane Km were Management Pavement resurfaced during the second quarter (To be verified) system (PMS) Management City Wide. system (PMS) A total of 296 Lane Km against a target of 304.17 Lane Km for the mid-term target were resurfaced.

The delay was due to inspections that were conducted for treatment to be applied on identified streets

Priority 3: Priority Sustainable human settlements Sustainable 43.8 km of gravel 20,92 km of 47.4 km of 0 km 0 km Upgrading of gravel BRAM FISCHERVILLE Human roads upgraded gravel roads gravel roads roads to surfaced roads Construction is in progress and is 57% Settlements to surfaced roads upgraded to upgraded to programme complete. Urbanisation surfaced surfaced road Bram Fischerville,  Length of road asphalt laid: 2.5 km Plan (SHSUP) standard Diepsloot,  Length of road base completed: 5.0 Doornkop/Thulani, km Drieziek, Ivory Park,  Length of sub base completed: 1.4 Lawley, Orange Farm, km Protea South and  Length of roadbed cut 0.5 km Tshepisong  Stormwater pipes laid : 5.6 km

ORANGE FARM Construction is in progress and is 65% complete.  Length of road asphalt laid: 3.115 km  Length of road base completed:

Priority IDP programme Baseline 2014/15 annual 2015/16 Annual Q2 Q2 Actual Key Interventions Progress targets Target Target 1.04 km  Length of sub base completed: 1.945 km  Length of roadbed completed: 0.5 km  Stormwater pipes laid: 5.28 km

DIEPSLOOT WEST EXT.3 Construction is in progress and is 95% complete. Achieved 4.68km against a quarterly target of 2km:  Length of road asphalt laid: 5.646 km  Stormwater pipes laid : 2.4 km

DOORNKOP The contractor was appointed, construction has commenced, the consultant was appointed.

LAWLEY EXT.1 Phase I and II contractors are proceeding with construction. (48% completion)  Length of sub base completed: 0.54 km  Length of roadbed completed: 3.66 km  Stormwater pipes laid: 5.205 km

IVORY PARK EXT.9 Phase I and II contractors are proceeding with construction. (73% completion)  Length of road asphalt laid: 1.936 km

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Priority IDP programme Baseline 2014/15 annual 2015/16 Annual Q2 Q2 Actual Key Interventions Progress targets Target Target  Length of road base completed: 2.114 km  Length of sub base completed: 0.899 km  Length of roadbed completed: 1.32 km  Stormwater pipes laid : 8.035 km

PROTEA SOUTH EXT 1 Construction is progressing well and is 28% complete with stormwater pipes installation and laying of „imported‟ material from the borrow pit.  Length of road base complete: 0.1 km  Length of sub base completed: 0.125 km  Length of roadbed completed: 2.12 km  Stormwater pipes laid : 1.796 km

TSHEPISONG Phase I and II contractors are proceeding with construction. (68% completion)  Length of road asphalt laid: 2 km  Length of road base completed: 2.4 km  Length of sub base completed: 2.4 km  Stormwater pipes laid : 7.8 km

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Priority IDP programme Baseline 2014/15 annual 2015/16 Annual Q2 Q2 Actual Key Interventions Progress targets Target Target 5.8 km of opens 4,25 km lane of 5.45 km of 1open 0 km 0.8 km Conversion of open BRAM FISCHERVILLE drains into open channels channels drains to underground, Construction is in progress and is 100% underground at converted to converted to Bram Fischerville, Ivory complete. Achieved 0.8km against a specified areas underground underground Park and Orange Farm quarterly target of 0km. system Orange system at  28m of 3000 mm X 1500 mm portal farm, Alexandra , specified areas culver in Unity Street, Ivory Park and  245m of 1800 mm X1800 mm portal Diepsloot culvert Unity Street,  177m of 1800 mm X 1500 mm portal culvert Unity Street,  55m of 825 mm pipe in Amandla Street,  181m of 1500 mm pipe in Botswana Street,  92m of 2400 mm X 1500 mm portal culvert in Ghana Street,  22m of 1200 mm pipe in Amandla Street

IVORY PARK EXT.7 Construction in progress (50% completion)  540m of 450mm pipes laid,  965m of 600mm pipes laid,  80mm of 750mm pipes laid,  132m of 900mm pipes laid,  48m of 1050mm pipes laid

ORANGE FARM The construction tender was advertised and closed in November 2015.

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3. 7 Supply Chain Management and Black Economic Empowerment

The entity has adopted Supply Chain Management (SCM) systems in compliance with the provisions of the MFMA and the National Treasury: Municipal Supply Chain Management Regulations, 2005. A SCM unit monitors the implementation of the entity‟s SCM policies in line with the regulations which seeks to modernises financial governance and improve accountability and transparency in the entity‟s processes. The entity‟s SCM policies provide for the exclusion of awards to persons in the service of the state subject to the exemptions and regulations issued by National Treasury from time to time. The entity has established an SMME desk and has issued level one tenders to the registered SMME‟s only. These tenders will be awarded during the 2015/2016 financial year. The procurement policy of the JRA The entity has adopted Supply Chain Management systems in compliance with the provisions of the MFMA and National Treasury: Municipal Supply Chain Management Regulations, 2005. This includes a detailed Procurement Policy with the SCM unit being the primary implementer thereof. The policy seeks to ensure that the JRA complies with the Treasury regulations which seek to modernise financial governance and improve accountability and transparency in the entity.

Other Specific Goals In terms of the Regulations (Section 17(3)) the following activities may be regarded as a contribution towards achieving the goals of the Reconstruction and Development Program: a) The promotion of South African owned enterprises; b) The promotion of export oriented production to create jobs; c) The promotion of SMMEs; d) The creation of new jobs or the intensification of labour absorption (which has been interpreted, for the purposes of this guide, to include the employment of local labour); e) The promotion of enterprises located in a specific province for work to be done or services to be rendered in that province; f) The promotion of enterprises located in a specific region for work to be done or services to be rendered in that region; g) The promotion of enterprises located in a specific municipal area for work to be done or services to be rendered in that municipal area (the municipal area may, for the purposes of this guide, be narrowed down to smaller local areas such as suburbs or wards); (h) The empowerment of the work force by standardising the level of skill and knowledge of workers; i) Training and improvement of management skills (formal training of the work force undertaken; j) Training on an enterprise‟s own initiative, shall for the purposes of this guide, be recognized in this category); and k) The upliftment of communities within the City of Johannesburg

JRA has appointed Consultants in order to assist the company in shaping the SCM strategy geared to support JRA‟s overall objectives and priorities. The entity has implemented the three-stage bidding process with separate Bid Specification, Bid Evaluation and Bid Adjudication committees established.

The Capital projects implemented during the review period served as a mechanism for ensuring participation by SMME‟s, Cooperatives and BB-BEE companies. As part of this initiative, a process was commenced to establish a register of SMME‟s and Cooperatives on a regional basis. During the 2nd quarter, awards to a value of R1 205 591 552, 44 were made of which almost 78 % of the value of the tenders was awarded to SMMEs and BEE companies.

Awards to state employees  Legal requirements The JRA enforces the prohibition against granting awards to state employees through the declaration of interest forms. Employees are required to declare their interests in line with the legislation and these declarations are then monitored.  The challenges experienced by the entity This process is not effective given the lack of suitable software and tools to further interrogate the declarations or submissions by bidders to ensure compliance and identify possible awards to state employees.  Mechanism in place or to be put in place to deal with the challenges. A system to address this shortcoming is being investigated and the entity will consider the procurement of software to assist in identifying state employees in contravention of the code of ethics. Suppliers identified, that are blacklisted by National Treasury will be blocked from the JRA Supplier Database.

3.8 Statement on Amounts Owed by and to Government Departments and Public Entities

Amounts owing by other Governmental Departments and Public Entities are note as per Annexure K

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CHAPTER FOUR HUMAN RESOURCES AND ORGANISATIONAL MANAGEMENT

4.1 Human Resources Management

4.1.1 Socio-Economic Context South Africa remains a dual economy with one of the highest inequality rates in the world, perpetuating inequality and exclusion. The unresolved set of complex socio-economic challenges has locked South Africa into a low-level equilibrium of low growth, persistent poverty and widespread exclusion and unemployment. Although many of the required policy actions are known to the policy- makers, implementation of these has been hampered by a lack of broad political consensus and the deficit in trust between business, labour and government.

According to Statistics South Africa, the unemployment Rate in South Africa decreased to 25% in the second quarter of 2015. In South Africa, the unemployment rate measures the number of people actively looking for a job as a percentage of the labour force.

4.1.2 Talent Acquisition Processes and Regulations The JRA prides itself as an employer which supports the principles of employment equity, and equal employment/opportunity based on competition, equity, and fairness. Employees are recruited, selected, appointed, transferred and promoted on the basis of fairness and non-discrimination in line with the Employment Equity Act, 1998 (Act 55 of 1998) and Employment Equity (EE) Policy of the COJ. The JRA policy prohibits discrimination, directly or indirectly, against any current or prospective employees with respect (but not limited) to race, gender, age, political opinion, religion, marital status, ethnic or social origin, sexual orientation, or medical status. The JRA recognises a need to recruit and select suitably qualified employees, as well as those with potential for development. Employees are selected not only for their ability to contribute to the achievement of the JRA mandate but also for their potential to contribute to improved service delivery to Citizens. The training and development process also aims to provide employees with an opportunity for personal and career growth. The JRA has amended the Talent Acquisition and Management Policy to create career path for internal candidates which was approved by the REMCO during October. During this quarter the JRA appointed 12 employees.

4.1.3 Total workforce by employment type, employment contract, region, broken down by gender Head Office Employment type Work force Region Male Female Employment contract

Top management 7 Head office 5 2 7 Fixed Term contracts Senior management 22 Head office 14 8 1 Short Term contract; 2 Fixed Term contract and 19 permanent Professionally qualified and 55 Head office 39 16 2 Fixed Term contract experienced specialists and and 53 Permanent mid-management

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Employment type Work force Region Male Female Employment contract

Skilled technical and 98 Head office 61 37 4 Short Term contract; academically qualified 2 Fixed Term and 92 workers, junior management, Permanent supervisors, foremen, and superintendents Semi-skilled and 174 Head office 81 93 10 Short Term contract discretionary decision making and 164 Permanent Unskilled and defined 52 Head office 28 24 37 Interns; and 15 decision making Permanent

Region A Employment type Work force Region Male Female Employment contract Top management 0 Region A 0 0 0

Senior management 1 Region A 1 0 1 Permanent

Professionally qualified and 2 Region A 1 1 2 Permanent experienced specialists and mid-management

Skilled technical and 2 Region A 2 0 2 Permanent academically qualified workers, junior management, supervisors, foremen, and superintendents

Semi-skilled and 35 Region A 31 4 35 Permanent discretionary decision making

Unskilled and defined 68 Region A 62 6 68 Permanent decision making

Region B Employment type Work force Region Male Female Employment contract

Top management 0 Region B 0 0 0

Senior management 1 Region B 1 0 1 Permanent

Professionally qualified and 1 Region B 0 1 1 Permanent experienced specialists and mid-management

Skilled technical and 4 Region B 3 1 4 Permanent academically qualified workers, junior management, supervisors, foremen, and superintendents

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Employment type Work force Region Male Female Employment contract

Semi-skilled and 35 Region E 27 8 35 Permanent discretionary decision making

Unskilled and defined 112 Region E 74 38 112 Permanent decision making

Region C Employment type Work force Region Male Female Employment contract Top management 0 Region C 0 0 0 Senior management 1 Region C 1 0 1 Permanent Professionally qualified and 1 Region C 0 1 1 Permanent experienced specialists and mid-management Skilled technical and 2 Region C 2 0 2 Permanent academically qualified workers, junior management, supervisors, foremen, and superintendents Semi-skilled and 25 Region C 20 5 25 Permanent discretionary decision making Unskilled and defined 73 Region C 58 15 73 Permanent decision making

Region D Employment type Work force Region Male Female Employment contract Top management 0 Region D 0 0 0 Senior management 1 Region D 1 0 1 Permanent

Professionally qualified and 0 Region D 0 0 0 Permanent experienced specialists and mid-management Skilled technical and 4 Region D 1 3 4 Permanent academically qualified workers, junior management, supervisors, foremen, and superintendents Semi-skilled and 44 Region D 36 8 44 Permanent discretionary decision making Unskilled and defined 81 Region D 52 29 81 Permanent decision making

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Region E Employment type Work force Region Male Female Employment contract

Top management 0 Region E 0 0 0 Senior management 1 Region E 1 0 1 Permanent

Professionally qualified and 1 Region E 1 0 1 Permanent experienced specialists and mid-management

Skilled technical and 4 Region E 3 1 4 Permanent academically qualified workers, junior management, supervisors, foremen, and superintendents

Semi-skilled and discretionary 42 Region E 36 6 42 Permanent decision making

Unskilled and defined 107 Region E 82 25 107 Permanent decision making

Region F Employment type Work force Region Male Female Employment contract

Top management 0 Region F 0 0 0

Senior management 1 Region F 1 0 1 Permanent

Professionally qualified and 2 Region F 1 1 1 Fixed Term experienced specialists and 1 Permanent mid-management

Skilled technical and 1 Region F 1 0 1 Permanent academically qualified workers, junior management, supervisors, foremen, and superintendents

Semi-skilled and 29 Region F 24 5 29 Permanent discretionary decision making Unskilled and defined 72 Region F 52 20 72 Permanent decision making

Region G Employment type Work force Region Male Female Employment contract

Top management 0 Region G 0 0 0

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Employment type Work force Region Male Female Employment contract

Senior management 1 Region G 1 0 1 Permanent Professionally qualified and 2 Region G 2 0 2 Permanent experienced specialists and mid-management Skilled technical and 3 Region G 2 1 3 Permanent academically qualified workers, junior management, supervisors, foremen, and superintendents Semi-skilled and discretionary 31 Region G 26 5 31 Permanent decision making Unskilled and defined 82 Region G 59 23 82 Permanent decision making

Strategic Assets (Depots) Employment type Work force Region Male Female Employment contract

Top management 0 Strategic Assets 0 0 0 Senior management 1 Strategic Assets 1 0 1 Permanent

Professionally qualified and 5 Strategic Assets 4 1 5 Permanent experienced specialists and mid-management

Skilled technical and 11 Strategic Assets 8 3 11 Permanent academically qualified workers, junior management, supervisors, foremen, and superintendents

Semi-skilled and discretionary 67 Strategic Assets 53 14 67 Permanent decision making

Unskilled and defined 143 Strategic Assets 100 43 143 Permanent decision making

4.2 Employee Remuneration (Total Q2 Costs) Q2 Employment type Total Costs R’000 Top management 2 278 007 Senior management 6 988 877

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Q2 Employment type Total Costs R’000 Professionally qualified and experienced specialists and 25 814 957 mid-management Skilled technical and academically qualified workers, junior 29 278 723 management, supervisors, foremen, and superintendents

Semi-skilled and discretionary decision making 4 784 352

Unskilled and defined decision making 33 897 659

4.3 Key Vacancies The following are key vacancies during the second quarter: - - Manager: Employee Relations – Interviews held on Dec 11, 2015, awaiting background checks - Depot Manager: Region D – Interviews held on Nov 06, 2015, no suitable candidate found - Manager: Internal Audit – Interviews held on Dec 10, 2015 awaiting background checks - Manager: Operations Administration – Interviews held on Dec 14, 2015, awaiting background checks - Office Manager: Corporate Services – Interviews held on Dec 04, 2015, recommendation report is en route approval

4.4 Employment Equity / Staff Demographic Profile All Municipal Owned Entities are obliged to align to the COJ Economic Active Population Programme (EAP) and as such, the JRA uses the demographics of the COJ Economic Active Population (EAP) to determine its employment equity targets. The table below indicates the applicable percentages that will be used in reporting, in relation to the set numerical goals and targets of designated groups in the JRA. The COJ statistics are utilized only as a benchmark. The EAP statistics are based on the latest information available from the Department of Statistics South Africa (SSA). In order to give effect to structured implementation of the EE Act, the JRA has approved the Employment Equity Policy and Plan to provide a clear framework.

Table: EAP Representatives Profiles for Males and Females as at 21 Sept – 20 Dec 2015 Population Group Economically Active Population % Male Female Total African 67.19% 25.68% 92.87% Coloured 0.86% 0.73% 1.59% Indian 0.55% 0.15% 0.7% Whites 3.25% 1.59% 4.84%

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Table: Employment Equity / Staff Demographic Profile as at 21 Sept - 20 Dec 2015

Foreign Male Female Occupational Levels Nationals Total A C I W A C I W M F Top management 4 0 0 1 2 0 0 0 0 0 7 Senior management 12 0 0 7 5 0 0 4 0 0 28 Professionally qualified and 97 6 7 25 54 4 1 6 3 0 203 experienced specialists and mid-management Skilled technical and 129 5 0 9 86 5 0 13 0 0 247 academically qualified workers, junior management, supervisors, foremen, and superintendents Semi-skilled and 162 0 1 2 22 1 0 2 0 0 190 discretionary decision making Unskilled and defined 692 4 1 7 263 2 0 2 0 0 971 decision making TOTAL PERMANENT 1096 15 9 51 432 12 1 27 3 0 1646 Temporary employees 2 0 0 0 11 0 0 0 0 0 13

GRAND TOTAL 1098 15 9 51 443 12 1 27 3 0 1659

Table: Statistics for the equitable representation, (Section 54 EE Act) as at 21 Sept – 20 Dec 2015

Male Female Foreign Nationals Total Present And A C I W A C I W Male Female Expected

Current 1098 15 9 51 443 12 1 27 3 0 1659 All Employees Proposed 1104 17 11 78 440 20 6 45 6 0 1727

4. 5 Skills Development and Training It is incumbent on the JRA to design, implement and evaluate the effectiveness of their programmes in reducing disputes in workplace performance. The objective of employee training and development is to prosper in this present day diverse and regressed economy. It is imperative to invest in on-going training and development to improve proficiencies in production as well as to acquire the greatest return on investment of human capital.

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Training is related to the skills an employee must acquire to improve the probability of achieving the organisation‟s overall business and goals, objectives as well as their individual goals. It also provides an opportunity and broad structure for the development of human resources' technical and behavioral skills in an organization and helps the employees in attaining personal growth. Positive training offered to employees may assist with reduction of anxiety or frustration, which most employees have experienced on more than one occasion during their employment careers.

In order to develop insight into existing skills gap, JRA has conducted a comprehensive skills audit. This will inform training programmes going forward.

Programme Highlights of the Second Quarter Corporate Services arranged for the implementation of several training programmes during the second quarter from October to December 2015. Below is a summary of the various training and development programmes which were implemented during the second quarter:

4.5.1 Supply Chain Management Training

Supply Chain Management (SCM), as one of the core components of the public financial management discipline, seeks to ensure the proper flow of goods and services between the supplier and the public sector institutions.

A need for SCM training was raised at the JRA Local Labour Forum (LLF). Human Capital Management responded to this request and arranged training to shop stewards of both SAMWU and IMATU in the basic principles of SCM policies and procedures. The training proved to be fruitful as it provided a basic understanding of SCM requirements within the organisation according to legislation.

4.5.2 Root Cause Analysis Training

This program was intended for Inspectors, General Workers and first line supervisors involved in service delivery functions within the Public Sector.

Delegates were taught to contribute to the improvement of service delivery through the cultivation of more effective and people skills, problem solving, being creative and generating new ideas.

The employees also learned how to demonstrate an ability to locate problems within a wider public sector context, demonstrating an ability to receive problem solving as a process and manage problem solving objectively, identifying levels of authority and protocol relating to the resolution of problems. Engagement in decision making is essential in order to resolve problems and generate new ideas and solutions in order to contribute towards overall public sector objectives.

Lastly, the principles of risk management need to be identified and applied by attendees to resolve problems by a process of analysis and decision making.

4.5.2 Team Leader Training

Supervisors previously known as Team Leaders are responsible for the supervision of General Workers who are fulfilling road maintenance work on a daily basis. These duties include road patching, storm water cleaning and kerbing.

The importance of leadership training is something that no business can afford to overlook. HCM has addressed the need for leadership training at lower levels to invest in these leaders‟ current position and career aspirations by providing leadership skills to young and upcoming area supervisors and

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team leaders. This training provided supervisors with the opportunity to learn how to lead with skill and confidence. One of these outcomes of this training is that, once trained, these employees will be more committed and empowered to play a vital role within a team.

Modules presented to the Team Leaders include:  Project Management  Team Management  Conflict resolution and Communication Skills Training

HCM is proud that the supervisors who have attended this training as they will play an intricate role in guiding workers to fulfil the vision and mission of the JRA.

4.5.3 Road Construction and Maintenance Training

Road Construction and Maintenance is the core business of the JRA. With the large intakes of new General Workers this, and during the previous financial year, HCM realised the need for Road Construction and Maintenance Training to provide these newly employees with the necessary induction into the JRA environment and to equip them with the necessary road construction and maintenance skills.

Several General Workers were given the opportunity to improve their construction and maintenance skills by attending a programme presented in-house and designed to facilitate learning via theoretical and practical training. The outcome of this training will effect an improvement in the quality of construction and maintenance projects undertaken by the JRA. Although this programme has just started with a few introductory modules, the following modules will be presented during this training programme scheduled over a few months:-  Apply Health and Safety to a Works Area  Render Basic First Aid  Footway Construction  Ker laying  Deep patching  Manhole  General Brickwork  Pipe laying  Road Patching  Maintain Bituminous Surface ( pothole patching)  Implement Roadside Safety Procedures

4.5.7 Quarter Two 2015/16 Training Statistics for Period: 01 October to 31 December 2015 The table below indicates all the training interventions implemented during the second quarter (October to December 2015) period:

Strategic Skills Education and Training Priority Internal Training External Training Trained Priority Provider Provider Improve Efficiency Interns 52 Sub Ed 84 151

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Strategic Skills Education and Training Priority Internal Training External Training Trained Priority Provider Provider Degrees/Diplomas (Bursars) 15 Develop Project Management 3 Management & 140 Supervisory skills IMFO Conference 3

Team Leader Training 88

Wits Management Training 10

Leadership Fundamentals 1

Wits Municipal Finance Executives Training 13

Change Management Training 22 Other IPM Master Class 2

Vat - Back to Basics 2 Trade Unions Seminar 10 605 SCM Training 35 GIS Training 26 Road Construction and Maintenance Training 84 HCM Training Forum 45

Municipal Finance Training (Siyakhula Trust) 2

IMPSA Conference 5

EPWP Training 26

Traffic Signal Design 20

Road Works Traffic Management 16

IPM Conference 9

Telephone Etiquette 69

Ethics and Governance 86

Route Cause Analysis 60

Microsoft Excel Level 1 13

Microsoft Excel Level 2 14

OHASA – Health and Safety Representatives 30

Women in Engineering Convention 13

Road Safety Audits Training 23

Bursars 15

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Strategic Skills Education and Training Priority Internal Training External Training Trained Priority Provider Provider

Total 112 784 896

In addition, the JRA has also facilitated the learning of 84 internal JRA employees by providing financial assistance via the Subsidised Education Scheme towards studying degrees/ diplomas at Higher Educational Institutions. A total of 52 young people from the public sector were employed during January/ February 2015 for a one year period as Interns. In addition, a total of 15 students were provided bursaries by the JRA to study on full-time basis at various Universities in the country. 4.6 Performance Management & Succession Planning Performance Management for the 2nd quarter can be discussed under the following two main headings, namely:-  Implementation of the approved Performance Management and Development Policy,  JRA Inter-Change Project: Close-out reporting and extension of the project scope. 4.6.1 Implementation of the approved Performance Management and Development (PMD) Policy The implementation process of the policy within the JRA is progressing well and the following has been accomplished during the 2nd quarter:-  The process of aligning the Core Management Competencies (CMC‟s), which is a requisite component of the Balanced Scorecards for salary levels 1 to 5, with the JRA Competency Framework has been finalised.  HCM standardized the strategic/operational Measurable Outputs relating to the generic management Key Performance Areas which form part of the Balanced Scorecards of managers on levels 1 to 5.

 Changes in Performance Management templates and processes, subsequent to the approval of the PMD policy, were presented by HCM to the Executive Management Team for comments and eventual implementation at executive level.  HCM met with the management team and employees of RSD to explain the requirements of the approved PMD policy, specifically relating to the performance within a team context. More such sessions with employees will be facilitated in order to create a platform for discussion and clarification of the PMD policy

4.6.3 JRA Inter-Change Project: Close-out reporting and extension of the project scope The Skills Audit process was finalised at the end of August 2015 and the skills audit report was submitted and presented to the Executive Management Team during October/November 2015. Feedback sessions to managers were conducted thereafter. All Personal Development Plans and skills audit reports were submitted to the JRA for distribution. The consultative process with regards the remuneration benchmarking and salary structuring process continued during the 2nd quarter and the final proposed salary structures will be submitted for consideration board structures during the 3rd quarter.

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The extension of scope for the Inter-Change project in order to redress some of the project findings has been approved. Work will commence as soon as the salary structures have been approved and the legal framework is in place to support the extended timeframes of the contract.

4.7 Disciplinary Matters and Outcomes 4.7.1 Disciplinary Cases conducted and finalized:-

 Two (2) cases of theft still in hand from Q1. One (1) new case reported and under investigation.  Three (3) Cases of AWOL reported. Two (2) Investigations underway. One (1) case is disciplinary hearing in hand;  Three (3) Cases of fraud reported, of which two (2) is still under investigation. One (1) case is in hand.

4.7.2 Suspensions:-

 Eight (8) employees currently on suspension pending investigations and disciplinary procedures. - Six (6) suspensions from Q1 still outstanding awaiting finalisation of investigations, there were challenges experienced with investigation officers. - Two (2) suspensions from Q2 investigations are underway.

4.7.3 Conciliations and arbitrations:

 Five (5) Conciliations conducted  One (1) arbitration concluded in favour of the JRA.  Four (4) referred to arbitration;  One (1) matter is part-heard

4.7.4 Grievances: One (1) Grievance finalised awaiting the acting Managing Director‟s ruling 4.8 Leave and Productivity Management 4.8.1 Leave Management The entity is committed to the effective management of leave for its employees. To this end, supervisors and line managers are charged with the responsibility of leave management within their respective units. It is however acknowledged that challenges exist within the current manual leave management system. It is anticipated that this system will become fully automated during 2015/16. The JRA has also approved the process to migrate to new SAP system which will be implemented in the 2015/16 financial year. Access to leave input on JDE has been centralised to JRA Head Office. 4.8.2 Productivity Management The roll out of the productivity programme has been put on hold by the CoJ. 4.9 Employee Health and Wellness Programmes 4.9.1 Wellness Programme An Integrated Employee Health & Wellness Policy as well as the Employee Health & Wellness Plan has recently been approved to manage related issues. The purpose of the policy and the plan is to improve the quality of life of the employees through provision of quality, sustainable and life-long

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wellness programmes. The business is in the procurement process of a partner that will provide some of the services in line the business hybrid approach to employee health and wellness manners. As part of encouraging healthy lifestyle the following EHW programmes were rolled out during quarter two of 2015/16 financial year:-  The Health Screening campaign was successfully carried out at Head Office and all the Regions, the health screenings covered the following: Prostate, BMI, Blood pressure, Eyes and Ear screening and Financial Support Services.

 Eighty (80) JRA employees participated in the 2015 iThemba Justine Breast Cancer Awareness Campaign in support of the people leaving with the disease.  All JRA employees participated in the commemorations of the 16 Days of Activism for No violence Against Women and Children and its aim was to raise awareness on violence against women and children and support the campaign to encourage a culture of non- violence. The white ribbons symbolizing support of the campaign were procured for all JRA employees and awareness posters were placed at notice boards at Head Office floors and at reception areas in all regions during the campaign period (November 10, 2015 – December 10, 2015).

4.9 .2 HIV / AIDS in the workplace The JRA commemorated World Aids Day on the 01 December 2015, candlelight ceremonies were held at the regions and Head office. T-shirts were procured for the employees with the 2015 theme message “Zero Stigma, Zero Discrimination, and Zero New Infections”. 4.9.3 Employee Retention Employee retention is an on-going process of analysing, developing and effectively utilising talent to meet business needs. It is designed to support the leadership, career planning and overall development of all employees. Its primary focus is to develop an understanding of the skills, experience and capabilities that the business needs in order to deliver on its objectives In order for the JRA to mitigate the risks of losing highly skilled, competent and knowledgeable employees, the organisation will amongst others interventions implement the following actions:-  Develop a flexible remuneration and reward strategy to create a sound basis for decision making and to remain competitive;  Conduct regular salary benchmarking surveys to remain competitive;  Conduct regular surveys to determine employee attitudes and satisfaction;  Recognize good performance;  Provide development opportunities;  Allow voluntary job rotation to afford employees opportunities to learn new jobs and activities During this quarter the JRA managed to retain one of its employee who had technical skills within the planning department and was given a counter offer. 4.10 Employee Benefits

The JRA provides employment benefits to its employees as prescribed in the Basic Conditions of Employment Act (BCEA). This is also in line with collective agreement

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4. 10.1 Pension Fund Benefits The JRA provides pension benefits to its employees through membership in accredited funds as listed hereunder. The benefit is facilitated by the employer, and allows for the investment of employees' retirement fund contributions (inclusive of employer portion). The contribution split ranges from 7.5% to 9.5 % employee contributions and from 15% to 22.5% employer contributions. The full contribution is borne by the TCTC employees.

NAME OF PENSION FUND NUMBER OF EMPLOYEES E-Joburg Retirement Fund 1165 Municipal Gratuity Fund 104 Municipal Employees Fund 37 City of Johannesburg 278 National Fund for Municipal Workers 1 TOTAL 1585

4.10.2 Medical Aid Participation in a medical aid scheme is compulsory for all employees; however employees are afforded the freedom to select their preferred medical aid provider from the list of contracted providers as indicated below. Contributions are made by both the employer and employee, with employer and employee contributions at 60% at 40% respectively. Employees participating in the Total Cost to Company (TCTC) scheme are not covered by this arrangement as their packages are inclusive.

NAME OF MEDICAL AID NUMBER OF EMPLOYEES FUND

BONITAS 292 HOSMED 60 KEYHEALTH 53 LA HEALTH 186 SAMWUMED 336 TOTAL 927

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4.10.3 Other Benefits

NAME OF BENEFIT QUALIFICATION CONDITION RELATED AMOUNT/RANGES

Housing Subsidy Only permanent employees qualify. The Employees should submit their R648.00 benefit is also limited to basic salaried as Mortgage bond documents to employees on TCTC already have this Human Capital Management benefit incorporated into their packages. (HCM) Hostel allowance Only permanent employees qualify. The Employees should submit a benefit is also limited to basic salaried signed copy of their lease R632.00 employee s employees on TCTC already agreement to either JOSCHO have this benefit incorporated into their or the City Housing packages Department. Travelling (locomotion Only permanent employees qualify. The Depends on the position and The benefit amounts to allowance) benefit is also limited to basic salaried occupational level. Employees R3500.00 currently. employee as employees on TCTC already are required to submit their car Employees are required to have this benefit incorporated into their registration papers, and the car submit their log sheets at six packages in question must be registered months intervals to enable in their name. HCM to consider additional loco adjustment Cell phone allowance Only permanent employees qualify. Depends on the position and Depends on the employee occupational level. occupational level, allowance

ranges from R440 to R 800.00

4.11. SAFETY, HEALTH AND ENVIRONMENT (SHE) During the second quarter, the following activities were carried out throughout all Regions:- Occupational Health

Medical Surveillance Programme

Medical Surveillance Examination is a programme that is carried out annually to monitor the exposure of employees to health hazards. There is also a pre-employment examination that is conducted for all newly appointed employees, to determine and monitor the status of their health, to prevent them from acquiring work related illnesses. The medicals surveillance programme was attended by eighty three employees (83). The recorded number has decreased due to refusal by employees to attend medicals at Region G (Avalon Depot).

TYPES OF MEDICAL SURVEILLANCE REGIONAL DEPOTS Periodic Pre -Employment Exit 3 Midrand 50 Region F Traffic Markings 15 Store 4 Avalon 14 Total 83 3

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Occupational Safety:

Safety, Health and Environmental Committee

Occupational Health and Safety Committee structures in every Region has over the years proved to be a powerful tool to assist managers and employees alike to be able to address health and safety issues which arises in the workplace. Twenty (20) meetings took place during the second quarter.

REGIONAL DEPOTS : SHE COMMITTEE MEETING COMPLIANCE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER

Asphalt Plant Asphalt Plant Asphalt Plant Norwood Asphalt plant Asphalt plant Head office Avalon Motorways Strijdom Park Motorways Motorways Waterval RSD RSD Waterval Waterval Norwood Norwood Strijdom Park Benrose Hamburg Midrand Benrose Benrose Norwood Midrand Benrose Fleet and Plant Fleet and Plant Fleet and Plant Fleet & Plant Fleet and plant Traffic Signals Waterval Traffic Signals Traffic Signal Dobsonville Traffic Signal Zandfontein Zandfontein Avalon Benrose

SHE Awareness and Workshops

Health and safety awareness and related workshop were carried out for the purpose of the safety, health and environmental program publicly seeking commitment of JRA employees to the improvement of the safety practices. The following awareness sessions were carried out:-

 COID Forum was held on 22nd October 2015 and twelve (12) depots administrators attended to monitor implemented improvement regarding Compensation of Injuries and Diseases data capturing, timeous and correct submission of claim forms as well as proper record storage and retrieval.

 Sixteen (16) SHE Depot Awareness were held with emphasis on seven (7) issues of concern i.e. First Aid, Health and safety register, health and safety committee meeting agenda template, Heat Stress, Environmental waste and spillages

 Safety Awareness – distribution of pamphlets which explained the procedure of reporting Injury on duty. Pamphlets (1600) were distribution with pay slip – 27 October 2015

JRA Contracts Monitoring

Contractor monitoring occurs in line with the implementation of the new Construction Regulations. The regulation has put pressure on JRA to ensure that contractors appointed, do comply with the Minimum Requirements of the Health and Safety Legislation.

The following contractors submitted Safety files for inspection and approval as well as periodic site inspections were carried out.

Evaluated Contractor safety Files Otis Proprietary Approved

Nyoni Projects Approved Lettam Building and Civils Approved

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Evaluated Contractor safety Files Lwake Investments Approved W.A Roads Construction Approved Bazaphi Construction Approved Bophelong Construction Approved Superway Construction Not Approved Ambassador Air Services Approved Nokulunga Pumps Enterprise Approved Primat Holeni Joint Venture Not Approved

SHE Non-Conforming issued Notices

Non-conformance notifications are issued based on which significant or audit finding of a non- compliance is written, a recommendation for corrective action of a deficiency is made agreed with contractor, and where the action taken is recorded verified and closed out.

 JRA Facilities Management Unit – Building of strong room without approved safety file  Mohwibidu Construction – Inadequate road barricading and poor stacking  Bophelong Construction – Poor dust control management  Superway Construction – Poor dust control management and inadequate baseline assessment  Cebekhulu Well Earned – Work stoppage

Management of Injuries on Duty The JRA injury incidents are reported according to Reportable Cases Rate values (RCR). The acceptable and recommended best practice reportable case rate value is one (1). Exceeding the value of one (1) becomes a clear indication of inadequate commitment to safety behaviours and principles and control measures. It is important to manage injury incidents to levels below the value of 1 (one). In the Second Quarter sixteen (16) reportable cases were reported. The depots are not demonstrating an improvement in terms of the efficiency of our control measures, safe behaviour and management commitment to enforce compliance. In this quarter more male employees were injured compared to the previous quarter showing a high number of female‟s injuries. Table 1 (RCR) shows the first quarter recordable case rate value at (0.07), falling below the acceptable limit with a value of 1.

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Table 1: REPORTABLE CASE RATE (RCR)

2015/ 16 Financial year No of Reportable Reportable Month No of employees No of hrs Hrs in month Hrs in yr Cases Case Rate FIRST QUARTER 2015 15-Jul 1666 184 306544 56404096 7 0,024820892 15-Aug 1660 160 265600 42496000 2 0,009412651 15-Sep 1647 168 276696 46484928 9 0,038722228 Q1- Total 0,072955771 SECOND QUARTER 2015 15-Oct 1640 176 288640 50800640 7 0,027558708 15-Nov 1635 168 274680 46146240 4 0,01733619 15-Dec 1628 136 221408 30111488 5 0,033209916 Q2 - Total 0,078104815

Table 1: The October and December month demonstrated high incidents rate. Of note was the high number of minor injuries due to motor vehicle accidents.

Table 2: Recorded Incidents at Regional depots DEPOTS QUARTER 1 QUARTER 2 QUARTER 3 QUARTER 4 TOTAL Asphalt Plant 1 Benrose 2 1 Avalon 1 4 Dobsonville 6 4 Waterval 1 Hamburg 2 1 Strijdom Park 2

Midrand 0 0 Motorways 4 0 Norwood 1 0 RSD 2 0 Zandfontein 0 1 Traffic Signals 0 1 T. M North 0 0 T.M Central 0 0 Fleet and Plant 0 0 Head Office 0 0 Total 18 16

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Table 3: Incident Statistics Graph: Quarter 2

INCIDENT STATISTICS : QUARTER 2

4,5 4 3,5 3 2,5 2 1,5 1 0,5 0

The graph above demonstrates a high number of injuries in the second quarter. However Avalon and Dobsonville are a concern with high incidents i.e. Dobsonville (4) and Avalon (4).The increased injury incidents may be attributed to possible poor judgement and disregard of standard operating procedures in the course of duty. The incidents statics is attached as Annexure “A”.

Environmental Management Compliance

Waste Management Training/Workshop

The SHE unit conducted a waste management Training/Workshop for the Environmental Management Representatives on the 09 December 2015. The training was attended by eleven (11) Environmental Representative and five (5) Facilities Management officials. The purpose of the training was to capacitate the Environmental Management Representatives in order execute environmental responsibilities as expected. The training was in-house and COJ: Waste Information Management System was invited to share information on waste management subject. It was critical for Facilities Management officials to attend for the purpose of implementing waste management compliance guidelines to ensure that whilst procuring maintenance services all waste plan requirements are adhered to.

Waste Awareness

Waste Awareness was conducted across the JRA Regional depots to create awareness to the employees on waste, because the employees are the ones that deal with waste on daily basis. A total of 613 employees attended the awareness and waste management pamphlets were issued. The waste management awareness were held at the regions during October 13 to November 19, 2015

Regional Depot Attended Employees Pamphlets Distributed Midrand 61 61 Strijdom Park 49 49 Waterval 44 44 Norwood 52 52 Zandfontein 42 42 Motorways 57 57

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Regional Depot Attended Employees Pamphlets Distributed Laboratory 5 5 RSD 40 40 Hamberg 52 52 Traffic Signals 49 49 Benrose 60 60 Fleet and Plant 10 10 Avalon 70 70 Asphalt 14 14

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CHAPTER FIVE FINANCIAL PERFORMANCE

5.1 Statement of Financial Position and high level notes  The cash on hand at the end of 2nd quarter was R 373, 031 million as compared to R 425, 739 million at the 30 June 2015

 There is an accumulated surplus of R 230, 367 million at the end of the second quarter as compared to an accumulated surplus of R 166, 802 million at 30 June 2015.

5.2 Statement of Financial Performance and high level notes ;  The net operating profit for the quarter is R 23 180, 114 million

 For the second quarter the operating expenditure was R 222, 111 million  The current ratio at the end of the 2nd quarter is 1: 1, 41, compared to 1, 24 at the 30 June 2015.

5.3 Cash Flow Statement

Refer Annexure I

5.4 Ratio Analysis

Refer Annexure D

5.5 Report on Irregular, Fruitless and wasteful Expenditure and due Process

5.5.1 Irregular Expenditure

There was no irregular expenditure identified during the 2nd quarter.

5.5.2 Fruitless and Wasteful expenditure

There was no Fruitless and Wasteful expenditure incurred during the 2nd quarter period.

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5.5.3 Deviations During the 2nd quarter, the deviations reported amounted to R2 808 651.66. These were emergency appointments as noted in the schedule below

Dept. Appointment Date Contract No / Supplier Value (Exclusive) Nature of Deviation Service/ Goods delivered Order No Facilities 14/10/2015 Ambassador Air R 881 869.76 Emergency Appointment of Ambassador Air to Maintain and Services (Pty) Ltd repair the air-conditioner system. The Head Office chillers systems are currently being refurbished by Ambassador air services as from 4 September 2015 and the handover is expected to take place on 30 September 2015. The air-conditioner has to be regularly maintained especially in the light of business time and finance the JRA lost in August and September 2015 due to chillers who failed to work properly Facilities 08/10/2015 Ambassador Air R 980 133.88 Emergency Appointment of Ambassador Air Services to fix the Services (Pty) Ltd Air-conditioner at Head Office. The Head Office chillers systems are currently being refurbished by Ambassador air services as from 4 September 2015 and the handover is expected to take place on 30 September 2015 However there are 4 additional components that needed to be fixed in order the air conditioner to return to optional functional level. The pumps serve the building air-conditioner by moving iced chilled water down to the building. The component‟s control and wiring are not operating anymore. ID 30/11/2015 152/2015 Egoli Gas R 664 984.02 Sole Supplier Appointment for the relocation of gas line located on the Emmarentia dam wall for the rehabilitation of the dam wall: The JRA appointed contractor is in the process of rehabilitating the wall of the Emmarentia Dam. The construction activities entail the removal of the existing rip-rap and rock material from the upstream face (water face) of the dam wall with the excavator. During construction the contractor

Dept. Appointment Date Contract No / Supplier Value (Exclusive) Nature of Deviation Service/ Goods delivered Order No detected a gas line located on the edge of the excavation face. The gas line poses a safety threat to the contractor‟s workers involved in the construction activities and the stability of the dam wall, and should therefore be relocated as the weight of the excavator will certainly damage it. Should the gas line break it can explode and lead to a breach in the dam wall. Asphalt 08/10/2015 115/2015 Makhosi Engineers R 281 664.00 Emergency Development of the business case/cost benefit and Project analysis for the procurement of the new JRA Asphalt Managers Plant: The Existing Asphalt plant was constructed and commissioned in 1956. In the past recent years an amount of R 8.8 million has been spent refurbish the plant. However the following concerns and challenges are still persistent: 1. Emission that results in air pollution. 2. Health and safety of the employees and neighbouring properties owners as well as their employees 3. Non-compliance to Occupational Health and Safety Act and Environmental Management Act.

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5.6 Pending Litigation and possible Liabilities

Pending and / or possible litigation against the JRA are noted hereunder:

NO. LITIGANT COMMENCEMENT DATE PROVISION AMOUNT CLAIMED TOTAL LEGAL CAUSE OF ACTION RAISED/CONTIGENCY EXPENSES INCURRED 1 #01 October, 2012 Yes R700 000.00 R2, 5 million The attorneys representing DEFAMATION the JRA in the three (3) (refer to note below) The plaintiff who is currently Gumbi / Mvelase have been employed by the JRA is suing paid R252, 782. 35 to-date. for defamation of character. He and two colleagues were suspended by the then CFO, Ms. Audrey Raphela who they allege made certain pronouncements during a general meeting of Finance and SCM staff. 2 Sizakele Mvelase October, 2015 Yes R700 000.00 R3 million Refer to comment on Same as above number 1. 3 Brian Bracher November, 2013 Yes. Not quantifiable No payments yet made. SPECIFIC PERFORMANCE Contingency. The plaintiff is suing the JRA for flooding on his property as a

result of a faulty storm-water drain. He has in the meantime obtained a court order compelling the JRA to repair the faulty storm water drain

4 Applemint Properties December, 2013 No. N/A N/A SPECIFIC PERFORMANCE Matter is being dealt with in- The plaintiff has served the JRA house with letter of demand to repair

damage to his property as a result of a storm-water pipe being extended on his property 5 JRA v Nomakhephu. January, 2011 No Contingency asset R 316 926.27 No payments yet made. RECOVERY OF MONIES

NO. LITIGANT COMMENCEMENT DATE PROVISION AMOUNT CLAIMED TOTAL LEGAL CAUSE OF ACTION RAISED/CONTIGENCY EXPENSES INCURRED raised Instructions have in the JRA is suing the defendant for meantime terminated. the payment of monies Another firm of attorneys erroneously deposited into the appointed to take the matter supplier‟s account. further 6 Bareki Management October, 2014 Yes Contingency R 159 373. 28 R285,952.73 OUTSTANDING PAYMENTS Consulting R159 373.28 Inclusive of item 15 The plaintiff issued summons for payment of an outstanding invoice issued on or about the 15th May, 2011 for services rendered. 7 Khumo ya Khomotso July, 2013 Yes. R955 892.04 No payments yet made OUTSTANDING PAYMENTS (Pty) LTD. R955 892.04 The plaintiff issued to contest the value of the work. The claim is inflated.

8 JRA v Stonevalley July, 2010 No Contingency asset N/A R21, 010. 755 including SPECIFIC PERFORMANCE Homeowners Association raised item 11, 12, and 16. The JRA applied by way of a notice of motion for specific performance for the rehabilitation of an attenuation dam against the residents association. 9 Superway (Pty) LTD July, 2011 Yes. R 158,181.42 Refer to item 10. OUTSTANDING PAYMENTS The plaintiff is suing for release of retention monies. R2 927 524. 42 10 Midnight Moon Trading July, 2011 Yes. Contingency R 3870.169.09 Refer to item 10. OUTSTANDING PAYMENTS 105 (Pty) LTD R3 870 169 09 The plaintiff is suing the JRA for the release of retention monies. 11 Khumo ya Khomotso October, 2014 Yes. Contingency R 3 650, 066.38 No payments yet made OUTSTANDING PAYMENTS

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NO. LITIGANT COMMENCEMENT DATE PROVISION AMOUNT CLAIMED TOTAL LEGAL CAUSE OF ACTION RAISED/CONTIGENCY EXPENSES INCURRED R3 650 066.38 The plaintiff is suing the JRA for the release of retention monies. 12 Lucienne Nanetter Raab November, 2014 Yes. contingency Not quantifiable Refer to item 8. INTERDICT APPLICATION & Others The applicants are applying for an order directing the respondents not to allow

construction vehicle to gain access to a construction site from Fulwell road in Bryanston. The JRA has issued a way- leave to the developers to conduct the work. 13 Superway Construction ( July, 2011 Yes. R1 , 277,649.41 Refer to item 10. OUTSTANDING PAYMENTS Pty) Ltd Refer to item 11 The plaintiff is suing for the release of retention monies

14 ZD Investments cc 11 February, 2015 Yes. R7 339. 628.00 No payments yet. SPECIFIC PERFORMANCE R22 241 298. 38 The plaintiff is suing the JRA alleging that a letter of appointment was issued as he was the preferred bidder although according to the JRA the appointment letter was never formally communicated to the bidder. 15 Telkom v JRA February, 2014 No R24 999.09 R7 000. The plaintiff alleges that JRA staff stole their underground cables whilst working in Jabulani, Soweto. Note: #01 to #04 not disclosed in order to protect the employees identification

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5.7 Insurance Claims against / to MOE / Department

5.7.1 Insurance against JRA Claims made against the JRA is provided in detail as Annexure M to this report

In summary, the following claims have been received during the 2nd Quarter:

Letter of Demand Normal Claims Summons Total October 2015 13 16 05 34 November 2015 24 98 05 37 December 2015 16 12 04 32

5.7.2 Insurance Claims (JRA claims against 3rd party)

Claims issued by JRA against 3rd parties during the 2nd Quarter are as listed in the table below:

All claims Theft / Vandalism Accident

Month Amount claimed Total 15/16 Month No of Amount claimed Total 15/16 Month No of incidents Amount claimed Total („R) incidents (R) (R) 15/16 Oct 15 688 674,70 2 199 059,18 Oct 15 45 1 336 325,41 2 218 Oct 15 83 396 229,65 1 266 972,78 139,80 Nov 15 766 738,91 Nov 15 45 368 046,95 Nov 15 57 450 322,32

Dec 15 743 645,57 Dec 15 29 513 767,44 Dec 15 73 420 420,81 119 213

CHAPTER SIX AUDITOR-GENERAL AND INTERNAL AUDIT FINDINGS

6.1 State of internal controls Progress on the status of internal controls based on the audits completed within Quarter 2 (October 2015 - December 2015) is that controls are adequate but ineffective to provide reasonable assurance that JRA objectives will be achieved:

.Name Audit Area Opinion Expressed Rating

Payroll Management Audit Inadequate and ineffective Red

Asphalt Plant Management follow-up Audit Adequate but ineffective Yellow

Key Control Assessment(Q1) Dashboard Adequate but ineffective Yellow

Bids Observations Continuous Audit Adequate and effective Green

Performance Information Audit Q1 Adequate but ineffective Yellow

Budget Management Follow Up Audit Adequate with the need for improvement on the Yellow effectiveness Contract Management Follow Up Audit Adequate but ineffective Yellow

Supply Chain Management and Expenditure Adequate with a need for improvement on the Yellow Management Audit effectiveness

Leave Management Audit Adequate but ineffective Yellow

IT General controls audit Adequate but ineffective Yellow

Business Planning and Development Adequate and effective with a need for Yellow improvement Mobility and Freight Infrastructure Maintenance Adequate but ineffective Yellow Including infrastructure protection follow up audit Legal Services Management follow up Audit Inadequate and Ineffective Red

Recruitment Interview Observations Adequate and effective Green

6.2 Progress on the resolution of internal audit findings Of the 140 Internal Audit findings open as at the end of 2nd quarter, twelve (12) findings were not yet due for implementation by JRA Management as at the end of the quarter 2, resulting in a total number

of one hundred and twenty-eight (128) findings due for the JRA to resolve. Progress against these findings is as follows: Findings Q2 Target Resolved in Q2 Unresolved Q2 128 102 34 94 80% 27% 73 %

New findings within the quarter 2:- Six (6) new audit findings were reported by Internal Audit during the 2nd quarter, based on completed audit reports.

Summary of resolution of Internal Audit Findings for Quarter 2

Description Total Findings Total Not yet due Total resolved Unresolved Q2 Opening balance as at 1 134 34 8 92 October 2015 Plus New findings issued 6 4 2 within Quarter 2 Totals findings as at 31 140 34 12 94 December 2015

Detailed Status of unresolved findings with management actions and progress as at Quarter 2: Description Management action Plans and Progress Responsible Timelines Person 94 unresolved findings  The approved Management agreed action All HOD‟s and Continuously and plan policy approved by is being Internal Audit. quarterly. 12 findings not yet due and implemented. All HOD‟s and Continuously and not yet followed up (With 6 Internal Audit quarterly. new findings raised in Q2)  Schedule of internal audit findings implemented and communicated by Internal Audit to all HOD for tracking of implementation of action plans to resolve audit findings.  Management to provide assurance on of implementation of action plans as and when they are due as per the approved agreed management action policy Evidence to be provided to IA as and when.  Internal Audit to conduct follow up audit as per the approved audit plan.  Progress on the status of resolution of Audit findings to be tabled at EMT and reported quarterly to Audit Committee and COJ.

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6.3 Progress on the resolutions of audit findings by the Auditor General

Management Letter issues (AG) 6.3.1. 2014/15 Audit. The audit was completed by the Auditor General in November 2015 and the JRA received a Clean Audit outcome. There were 32 findings raised and were categorised as follows:

Findings Category Findings raised Significant finding A 1 Other important matters B 28 Administrative Matters C 3 Total 32

Findings raised in the management letter are monitored through the Management Operation Clean Audit Forum (OPCAR) facilitated by the Risk Management Unit and attended by the Executive Management Team and other relevant Operational Managers and are followed up by the Internal Audit Unit to verify the status of resolution of findings. The OPCAR process for 2014/15 audit will be operational effective from the 3rd quarter. 6.3. 2. 2013/14 Audit Out of a total of 36 findings raised, thirty-five (35) findings translating to 97% has been resolved by Management to date and one (1) finding translating to 3% remained unresolved as at the end of quarter 2. During the quarter 2, four (4) findings were resolved.

6.3.3. Commitment by the Audit Committee to resolving audit findings

The Audit and Finance Committee remains committed to resolving audit findings and receives quarterly reports on progress made by management in this regard. The Committee raised concerns with Management on the resolution of Internal Audit findings in the meeting held on the 23 November 2015 and Management committed to address the concern, with the schedule of Internal Audit findings being made part of the Executive Management Committee meeting standing Agenda item monthly.

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ANNEXURES

Annexure Description Page

Annexure A JRA Strategic Risks 89

Annexure B Supply Chain Progress (per capital project) 91

Annexure C CAPEX Expenditure Report Summary: as at December 2014 98

Annexure D JRA – Q4 Company Performance – 2014-15 102

Annexure E INJURIES ON DUTY 163

Annexure F Detailed Income Statement 169

Annexure G Notes to Financial Statement 172

Annexure H Balance Sheet 175

Annexure I Cash Flow 176

Annexure J Fraud Allegations register 177

Annexure K Statement on Amounts Owed by Government Departments 179 and Public Entities Annexure L Contracts Awarded 180

Annexure M Claims against JRA 184

Annexure N Attendance at meetings, both Board and Committees 187

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ACRONYMS

Acronym Detail Acronym Detail AFS Annual Financial Statements LLB Bachelor of Laws B Proc B Proc – Baccalaureus Procurationis MFMA Municipal Financial Management Act BEE Black Economic Empowerment NSDS National Skills Development Strategy B-BBEE Broad Based Economic Empowerment OHASA Occupational Health and Safety Act CAPEX Capital Expenditure OPEX Operational Expenditure COBIT Control objectives for information technology PAYE Pay as you earn CoJ City of Johannesburg PDR Preliminary Design Report DDR Detailed Design Report RITC Risk and IT Committee EAP Economic Active Population RFQ Request for Quotation EE Act Employment Equity SCM Supply Chain Management EFF External Finance Fund SDBIP Service Delivery Budget Implementation Plan EFT Electronic Financial Transfer SMMEs Small Medium Micro Enterprises EMT Executive Management Team UPS Uninterrupted Power Supply GRAS Group Assurance Services USDG Urban Settlement Development Grant JDE JDE Accounting System VAT Value Added Tax JSIP

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Annexure A Table: Summary of JRA Risks

Trend Trend Item Risk Key Actions/Controls M&F Rating In Q1 In Nov ‘15

1 Reduced confidence in JRA's inability to  Development and approval of the SCM Strategy, Policy & SOP effectively implement CAPEX projects and  Develop a specification for appointment of panels for consultants adherence to the Customer Charter and contractors  Implementation of project management system (PMS) H(22.5)   Mid-term budget allocation to projects with a high propensity for expenditure and engagements with City of Johannesburg to obtain  approval for allocation of funding for tenders not awarded due to budgetary constraints.

2 Ineffective Business Continuity Management  The City is in the process of contracting with external provider that will be responsible for the successful roll out of BCM initiatives H(18)  across of entities. JRA has formally requested to be part of the  pilot project.

3 Potential closure of the Asphalt (”not fit for  External consultant was appointed to conduct a Business Case/ purpose”) Plant and inadequate production of Cost Benefit Analysis for a new plant. Report has been completed asphalt may result in inadequate supply of and will be presented to the Board on the 7th of December. asphalt to the JRA depots H(18)   Asphalt Plant management conduct weekly checks to ensure any  issues are picked and managed accordingly.

4 Failure to implement the ICT Governance  Development, approval and implementation maturity roadmap with timelines  Appoint a CIO H(14.4))    Alignment to PDSA and NT ICT Governance Framework

5 Inability to support the JRA to achieve objectives  Development and approval of the SCM Strategy, Policy & SOP due to ineffective SCM function  Implementation of the approved SCM Strategy and benefit tracking H(14.4)   Procurement of an automated monitoring system for tender  administration

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Trend Trend Item Risk Key Actions/Controls M&F Rating In Q1 In Nov ‘15

6 Non-compliant information security governance  Approval of information security governance framework and policy and management  Implement and embed information security risk management H(12.5))  

7 Theft and vandalism of the City roads  Install 9 cameras in 2015/16 financial year infrastructure and furniture  Secondment of ten (10) JMPD officers to the Freight & Infrastructure Protection Division H(12.5)   Mobilise communities to own and protect the infrastructure as per  the Development Service Delivery Model (DSDM)

8 Inconsistent application of project governance  Implement business-wide the project management framework, framework and systems policy and procedures  Establish (or extension of scope the existing) executive oversight forum for monitoring of key programmes and projects  Alignment to City Governance and regulatory frameworks  Procurement of document storage facility project management M(10.8)   filing

9 Fraud and corruption  Restructuring of the tender process to strengthen enforcement  Conduct security vetting for critical position  Finalisation of the Whistle-Blowing Policy  Migration to SAP ERP which has stricter authorisation and M(10)   approval controls

10 Labour unrest due to unsatisfactory labour  Enforce the Organisational Rights Agreement relations M(10.8)  

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Annexure B SCM progress

Supply Chain Management: Progress of capital projects in relation to tender processes

Project Description Tender Number BSC BEC BAC Letter of Award issued Brid 05- Le Roux Road Widening, Halfway House , Region A 051/2014 Approved Approved Approved Brid 05 - Naledi/Protea Bridge (between wards 20 and 14) New 092/2013 Approved Approved Approved 13/03/2014 Bridges (pedestrian and vehicle) Naledi D Regional Brid 10 - Bridge expansion joints, renewal bridges (pedestrian and 070/2013 Approved Approved Approved 31/10/2013 vehicles)Johannesburg F City wide Brid 11 -Bridge rehabilitation, renewal bridges (pedestrian and 070/2013 Approved Approved Approved 31/10/2013 vehicles) Johannesburg F City wide Brid 11 - Bridges, visual and detailed (Principal) inspections. New 072/2013 Approved Approved Approved 31/10/2013 bridges (pedestrian and vehicles) Johannesburg F City wide Brid 12 - Motorway Gantries. Renewal Roads: Rehabilitation 082/2014 Approved Approved Approved 15/12/2014 Johannesburg F City Wide Brid 20 - Bridges, overtopping (flooding). Renewal bridges 103/2014 Approved Approved Approved 02/03/2015 (pedestrian and vehicles) Johannesburg F City wide 104/2014 105/2014 106/2014 Brid 20 - Conrad Drive Bridge, Blairgowrie. Renewal bridges 101/2014 Approved Approved Approved 11/03/2015 (pedestrian and vehicles) Craighall B Ward Brid 30 - Jabulani/Molapo Bridge. New bridges (pedestrian and 108/2014 Approved Approved Pending N/A vehicles) Jabulani D Ward MISCL - Pedestrian Bridge in Kaalfontein: New Bridges (pedestrian 080/2014 Approved Approved Approved 02/12/2014 and vehicles) Kaalfontein Ext 2, A Ward

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Project Description Tender Number BSC BEC BAC Letter of Award issued MISCL -Pedestrian Bridge in Klipspruit West. New Bridges 080/2014 Approved Approved Approved 02/12/2014 (pedestrian and vehicle) Klipspruit West D Ward MISCL -Pedestrian Bridge in Slovo Park (also Ashanti). New Bridges 080/2014 Approved Approved Approved 02/12/2014 (pedestrian and vehicle) Coronationville B Ward MISCL -Pedestrian Bridge in Diepsloot. New Bridges (pedestrian 080/2014 Approved Approved Approved 02/12/2014 and vehicle) Diepsloot Wes A Ward Catch 10 - Emergency stormwater improvement (multiyear): Protea 092/2014 Approved Approved Pending Glen Ext 1 -4 (Phase 1 - 5. new stormwater catchments Protea Glen D Ward Catch 200 - Braamfontein Spruit Catchment: Erosion Protection, N/A Approved Pending East of George Lea Park to Marie Street (173 m length). New stormwater catchments Braamfontein Werf Ext 1, E Ward Catch 200 - Braamfontein Spruit Catchment: Erosion Protection: N/A Pending Conrad Drive to Rustenburg Road new stormwater catchments Braamfontein Werf B Ward Catch 200 -Braamfontein Spruit catchment: upgrade to culvert N/A Pending Milpark renewal roads. Construction and upgrades Braamfontein Werf Ext 1, B Ward Catch 205 -Robinson Canal catchment structural improvement 109/2014 Approved Approved Approved 04/03/2015 Robinson Canal Sub 4 renewal stormwater catchments Robin Acres F Ward Catch 205 -Robinson Canal catchment structural improvement 110/2014 Approved Pending Robinson Canal Sub 10 renewal stormwater catchments Robindale F Ward Catch 205- Robinson Canal catchment: structural improvement 109/2014 Approved Approved Approved 04/03/2015 Robinson Canal Sub 3, Sub 6 and Sub 7 renewal stormwater catchments Robindale F Ward Catch 210 - Bosmont catchment: stormwater drainage : central 162/2014 Approved Pending areas new stormwater catchments Bosmont F Ward Catch 210 - Klein Juskei catchment(CBP) stormwater control: 166/2014 Approved Pending Willows development: Windsor new stormwater catchments:Jukskei

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Project Description Tender Number BSC BEC BAC Letter of Award issued Park B Ward Catch 210 - Klein Juskei catchment: Bond Stream Relief System, 128/2014 Approved Pending Ferndale, new stormwater catchments Ferndale B Ward Catch 212 - Bez Valley catchment: Recon Sub 6, Rehab Main, Sub 124/2014 Approved Pending 1 & 4. Renewal stormwater catchments Bezuidenhout Valley F Ward Catch 215 - Kliptown stormwater upgrade (Phase 10): Low level 033/2014 Approved Approved Approved 21/07/2014 Bridge, renewal stormwater management projects Klipspruit West Ext 1, D Ward Catch 220 - Juskei catchment: Fourways Mall Dam and Downstream 059/2014 Pending Works. New stormwater catchments Fourways Ext 16, A Ward Catch 240 - Klipriver catchment: Upgrading of stormwater drainage 133/2014 Approved Approved Approved 25/05/2015 system in Mogaseview renewal stormwater catchment Klipspruit D Ward Conv - Conversion of Open Drains to underground /covered drains 084/2013 Approved Approved Approved 30/06/2014 in Braamfisherville. Renewal stormwater management projects Braamfisherville C Ward Conv- Conversion of Open Drains to underground/covered drains in 116/2014 Approved Approved Approved 30/03/2015 Ivory Park. Renewal stormwater management projects Ivory Park Ext 7, A Ward Conv - Conversion of Open Drains to underground/covered drains in 114/2014 Approved Approved Approved 18/08/2017 Orange Farm. Renewal stormwater management projects Orange Farm G Ward MISCL - Emergency stormwater interventions. Renewal stormwater 165/2014 Approved Pending management projects Johannesburg F City Wide MISC L - Emergency, critical and urgent depot stormwater 111/2014 Approved Approved Approved 29/06/2015 improvements. New stormwater management projects Johannesburg F City Wide REHAB- Rehabilitation of Open Channels City Wide. Renewal 126/2014 Approved Pending Stormwater Management Projects Johannesburg F City Wide CS - Capital equipment. New plant and equipment Johannesburg F 118/2014 Approved Pending Approved 20/08/2015 City Wide

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Project Description Tender Number BSC BEC BAC Letter of Award issued CS - Construction of Archiving facility. New operational Capex 137/2014 Approved Approved Approved Johannesburg F City Wide CS - Depot upgrading and standardisation. Renewal Operational 107/2014 Approved Pending Capex Johannesburg F City Wide CS - IT Security. New computer software Johannesburg F City Wide N/A N/A N/A CS - Operational Capex. Renewal Operational Capex Johannesburg 143/2014 Approved Pending F City Wide CS - Upgrade of Head Office Facilities. Renewal Building alterations 107/2014 Approved Pending Johannesburg F City Wide IT - ERP Migration. New computer software Johannesburg F City N/A N/A N/A Wide MISCL - Integrated Roads and Stormwater Master planning. New 052/2013 Approved Approved Approved 31/10/2013 stormwater management projects Johannesburg F City Wide MISCL - Investigate and Design Future Schemes. New Operational N/A N/A N/A Capex Johannesburg F City Wide MISCL - Environmental compliance. New Operational Capex 080/2013 Approved Approved Approved 06/08/2014 Johannesburg F City Wide RAMS - Stormwater Asset Monitoring. New Computer Software 074/2013 Approved Approved Approved 04/09/2014 Johannesburg F City Wide RAMS - GIS Improvement. New Computer Software Johannesburg 071/2013 Approved Approved Approved 18/12/2013 F City Wide MISCL - Dam Safety Rehabilitation. Renewal stormwater 115/2015 Approved Pending Approved management projects Johannesburg F City Wide MISCL - Gravel Roads: Agricultural Holdings. Renewal Gravel Road 100/2013 Approved Approved Approved 12/06/2014 Johannesburg F Regional MISCL - Gravel Roads: Braamfisherville. New Roads: Construction 066/2014 Approved Approved Approved 27/10/2014 and upgrades Braamfisherville D Ward MISCL - Gravel Roads: Diepsloot. New Roads: Construction and 067/2014 Approved Approved Approved 27/10/2014 upgrades Diepsloot West Ext3, A Ward

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Project Description Tender Number BSC BEC BAC Letter of Award issued MISCL - Gravel Roads: Doornkop/Thulani. New Roads: Construction 071/2014 Approved Approved Pending and upgrades Doornkop D Ward MISCL - Gravel Roads: Drieziek. New roads: Construction and 146/2014 Approved Approved Pending upgrades Drieziek G Ward MISCL - Gravel Roads: Ivory Park. New Gravel Road Ivory Park 068/2014 Approved Approved Approved 27/10/2014 Ext9, Award MISCL -Gravel Roads: Lawley. New roads: Construction and 058/2014 Approved Approved Pending 28/01/2015 upgrades Lawley Ext1, G Ward MISCL - Gravel Roads: Orange Farm. New roads: Construction and 069/2014 Approved Approved Approved 27/10/2014 upgrades Orange Farm G Ward MISCL - Gravel Roads: Protea South. New Roads: Construction and 157/2014 Approved Approved Pending upgrades Protea South Ext1, G Ward 017/2014 16/07/2014 MISCL - Gravel Roads: Tshepisong. New roads: Construction and 070/2014 Approved Approved Approved 27/10/2014 upgrades Tshepisong C Ward MISCL - Inner City Improvement: Renewal roads: Construction and 075/2014 Approved Approved Approved 02/12/2014 upgrades Johannesburg F Regional REHAB- Road Rehabilitation and Reconstruction Programme. 147/2014 Approved Approved Approved 16/04/2015 Construction and upgrades Johannesburg F City Wide 148/2014 164/2014 163/2014 RESUF-Resurfacing of M1 Motorway, Melrose F City Wide Sanral Approved Approved Approved RESUF-Resurfacing of M2 Motorway, Joburg F City Wide Sanral Approved Approved Approved RESURF - Resurfacing of Roads. Renewal Roads: Rehabilitation 001/2014 Approved Approved Approved 21/08/2014 Johannesburg F City Wide RESUF-Resurfacing of Soweto Highway, Orlando D Sanral Approved Approved Approved RNP003 - Westlake Road Extension New Roads: Construction and upgrades Rand Leases Ext1, C Regional RNP004 - James Street Extension. New Roads: Construction and 100/2014 Approved Approved Approved 11/03/2015

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Project Description Tender Number BSC BEC BAC Letter of Award issued upgrades Ennerdale, G Regional RNP005 - Spencer Road New Link New Roads: Construction and 099/2014 Approved Approved Approved 11/03/2015 upgrades Fleurhof C Regional RNP017 - Ballyclaire Drive Widening Renewal Roads: Construction 097/2014 Approved Approved Approved 11/03/2015 and upgrades River Club Ext 2, E Regional RNP021 - Outspan Road Upgrading Renewal Roads: Construction 098/2014 Approved Approved Approved 11/03/2015 and upgrades Littlefillan E Ward Turffontein Corridor (JRA) Renewal Corridors of Freedom 052/2013 Approved Approved Approved 31/10/2013 Intervention Turffontein F Regional MOB -Alternative Energy: Alternative Power Sources (LED). New 004/2013 Approved Approved Approved 01/08/2013 Mobility: Intelligent Transportation System & Networks Johannesburg F City Wide MOB -Alternative Energy: Alternative Power Sources (UPS). New 095/2014 Approved Approved Approved 03/06/2015 Mobility: Intelligent Transportation System & Networks Johannesburg F City Wide MOB - CCTV Cameras. New Mobility: Intelligent Transportation 072/2014 Approved Approved Approved 14/05/2014 System & Networks Johannesburg F City Wide MOB- City Deep Freight hud, Renewable Roads construction Sanral Approved Approved Approved MOB - Complete Streets (Streets Alive). New Roads: Construction 036/2014 Approved Approved Approved 20/10/2014 and upgrades Johannesburg F City Wide MOB - Geometric Improvements. Renewal Mobility: Intelligent 102/2014 Approved Approved Approved 02/03/2015 Transportation & System Networks Johannesburg F City Wide MOB - Guardrails. Renewal Roads: Construction and upgrades 062/2014 Approved Approved Approved 20/10/2014 Johannesburg F Regional MOB - Installation of New Warranted Traffic Signals in All Wards 006/2014 Approved Approved Approved 02/07/2014 City Wide. New Mobility: Intelligent Transportation System & Networks Johannesburg F City Wide MOB - Intelligent Transport Systems (ITS) projects. New Mobility: Sanral Approved Approved Approved Intelligent Transportation Systems & Networks Johannesburg F City Wide MOB - M2 Motorway at Main Reef Road Intersection. New Roads: 084/2014 Approved Approved Approved 18/12/2014

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Project Description Tender Number BSC BEC BAC Letter of Award issued Construction and upgrades Crown Ext2, E Regional MOB – Re-cabling of Old Redundant Cables at Signalised Traffic 006/2014 Approved Approved Approved 02/07/2014 Intersections. Renewal Mobility: Intelligent Transportation System & Networks Johannesburg F City Wide MOB - Remote Monitoring. Urban Traffic Control (UTC). New 035/2014 Approved Approved Approved 21/07/2014 Mobility: Intelligent Transportation System & Networks Johannesburg F City Wide MOB- SARTSM: Upgrade of Existing Signalised Intersections. 006/2014 Approved Approved Approved 02/07/2014 Renewal Mobility: Intelligent Transportation System & Networks Johannesburg F City Wide MOB - Traffic Management Centre. Renewal Mobility: Intelligent 011/2014 Approved Approved Approved 28/05/2014 Transportation System & Networks Johannesburg F City Wide MOB - Traffic Signal Adaptive Control. New Mobility: Intelligent 006/2014 Approved Approved Approved 02/07/2014 Transportation System & Networks Johannesburg F City Wide MOB - Upgrading Controllers and Phasing. Renewal Mobility: 101/2013 Approved Approved Approved 02/04/2014 Intelligent Transportation System & Networks Johannesburg F Regional

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Annexure C CAPEX Expenditure

JRA CAPEX Expenditure Report Summary: as at 30 December 2015

Project Number Project Description Revised Budget Actual Expenditure Open Commitments Total Spend / Committed Budget Variance 60002016 Gravel rds Agricultural 5 000 000,00 - 5 000 000,00 60142016 Bridge Upgrade Ivory Park 1 000 000,00 - 1 000 000,00 60152016 Bridge Upgrade far East Bank 1 000 000,00 - 1 000 000,00 60162016 Le Roux Widening 8 000 000,00 44 344,78 44 344,78 7 955 655,22 60182016 Bridge Rehab - BMS 12 500 000,00 7 542 143,89 7 542 143,89 4 957 856,11 60192016 Bridges Visual Inspection 5 000 000,00 4 834 360,36 4 834 360,36 165 639,64 60202016 Motorway Gantries 5 000 000,00 5 000 000,00 5 000 000,00 - 60212016 Bridges Overtopping 80 000 000,00 17 647 844,47 17 647 844,47 62 352 155,53 60222016 Conrad Drive Bridge 3 000 000,00 54 745,78 54 745,78 2 945 254,22 60232016 Jabulani - Molapo Bridge 2 500 000,00 464,91 464,91 2 499 535,09 60282016 Pedestrian Bridge Diepsloot 1 000 000,00 921,82 921,82 999 078,18 60302016 Braam Spruit Morningside 1 000 000,00 - 1 000 000,00 60312016 Braam Spruit George Lea Park 1 500 000,00 24 589,02 24 589,02 1 475 410,98 60322016 Braam Spruit Conrad Road 2 500 000,00 16 918,11 16 918,11 2 483 081,89 60332016 Robinson Canal Sub 4 2 000 000,00 1 115 882,42 1 115 882,42 884 117,58 60342016 Robinson Canal Sub 10 2 000 000,00 - 2 000 000,00 60352016 Robinson Canal Sub3,6,7 2 000 000,00 - 2 000 000,00 60362016 Bosmont Stormwater 5 000 000,00 4 609,09 4 609,09 4 995 390,91 60372016 Willows Development 5 000 000,00 27 931,42 27 931,42 4 972 068,58 60382016 Bond Street Ferndale 5 000 000,00 4 609,09 4 609,09 4 995 390,91 60392016 Bez Valley Catchment 5 000 000,00 226 099,09 226 099,09 4 773 900,91 60402016 Kliptown Low Level Bridge 7 000 000,00 4 689,09 4 689,09 6 995 310,91 60412016 Fourways Mall & Dam 1 000 000,00 114 488,41 114 488,41 885 511,59 60422016 Stormwater Mogaseview 1 000 000,00 4 649,09 4 649,09 995 350,91

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Project Number Project Description Revised Budget Actual Expenditure Open Commitments Total Spend / Committed Budget Variance 60462016 New Plant & Equipment 5 000 000,00 4 638 307,82 4 638 307,82 361 692,18 60472016 Asphalt Plant Upgrade 6 000 000,00 2 080 050,00 2 080 050,00 3 919 950,00 60482016 Archiving Facility 10 000 000,00 3 889 255,96 9 792,05 3 899 048,01 6 100 951,99 60492016 Depot Upgrading 10 000 000,00 1 145 248,05 8 487 645,40 9 632 893,45 367 106,55 60502016 New Computer Software 1 000 000,00 921,82 921,82 999 078,18 60512016 Operational Capex 10 000 000,00 4 243 851,02 276 761,01 4 520 612,03 5 479 387,97 60522016 Upgrading Head Office 10 000 000,00 1 133 728,08 251 242,00 1 384 970,08 8 615 029,92 60532016 ERP Migration New Computer 20 000 000,00 11 377 526,80 11 377 526,80 8 622 473,20 60542016 Dam safety Rehab 20 000 000,00 9 368 979,00 664 984,00 10 033 963,00 9 966 037,00 60552016 Emergency SW Intervention 5 000 000,00 2 671 319,96 2 671 319,96 2 328 680,04 60562016 Environmental Compliance 1 500 000,00 462,91 462,91 1 499 537,09 60572016 Stormwater Masterplanning 10 000 000,00 2 066 030,08 2 066 030,08 7 933 969,92 60582016 Design Future Schemes 10 000 000,00 3 118 701,25 3 118 701,25 6 881 298,75 60592016 Emergency Critical Urgent SW 40 000 000,00 9 516 735,42 9 516 735,42 30 483 264,58 60602016 CIty Deep Freight Hub (Renewal 30 000 000,00 11 538,18 11 538,18 29 988 461,82 60612016 Complete Streets 30 000 000,00 2 338 124,04 2 338 124,04 27 661 875,96 60622016 M2 Motorway Main Reef Intersection 13 000 000,00 - 13 000 000,00 60632016 Geometric Improvements 10 000 000,00 478 469,77 105 879,00 584 348,77 9 415 651,23 60642016 Guardrails 10 000 000,00 1 033,82 1 033,82 9 998 966,18 60652016 Alternative Power LED 5 000 000,00 553 998,30 806 302,69 1 360 300,99 3 639 699,01 60662016 Alternative power UPS 13 000 000,00 1 627 798,74 1 883 776,23 3 511 574,97 9 488 425,03 60672016 CCTV Cameras 2 500 000,00 1 061 267,27 1 061 267,27 1 438 732,73 60682016 New warranted Traffic Signals 5 000 000,00 1 877 732,99 291 707,71 2 169 440,70 2 830 559,30 60692016 Intelligent Transport System 11 941 000,00 39 148,03 11 649 756,00 11 688 904,03 252 095,97 60702016 ITS - CRR 10 059 000,00 120 667,41 9 813 658,00 9 934 325,41 124 674,59 60712016 Recabling Intersections 15 000 000,00 7 232 385,13 1 411 934,67 8 644 319,80 6 355 680,20 60722016 Remote Monitpring 3 000 000,00 368 629,52 188 875,50 557 505,02 2 442 494,98 60732016 SARTSM 2 000 000,00 1 579 939,41 1 579 939,41 420 060,59

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Project Number Project Description Revised Budget Actual Expenditure Open Commitments Total Spend / Committed Budget Variance 60742016 Traffic management Centre 2 300 000,00 - 2 300 000,00 60752016 Traffic Signal Adaptive Contro 5 000 000,00 1 182 730,69 1 182 730,69 3 817 269,31 60762016 Upgrade Controllers & Phasing 5 000 000,00 1 945 006,25 131 263,09 2 076 269,34 2 923 730,66 60772016 GIS Improvement 20 000 000,00 2 479 475,00 2 479 475,00 17 520 525,00 60782016 Gis Improvement 5 000 000,00 139 779,68 139 779,68 4 860 220,32 60792016 Stormwater Asset Monitoring 5 000 000,00 496,91 496,91 4 999 503,09 60802016 Rehab Open Drains City Wide 10 000 000,00 278 049,92 278 049,92 9 721 950,08 60812016 Road Rehab & Reconstruction 140 000 000,00 19 914 549,54 19 914 549,54 120 085 450,46 60822016 Resurfacing M1 Motorway 50 000 000,00 1 062 170,85 1 062 170,85 48 937 829,15 60832016 Resurfacing M2 Motorway 10 000 000,00 86 073,01 86 073,01 9 913 926,99 60842016 Resurfacing Soweto Highway 5 000 000,00 34 945,16 34 945,16 4 965 054,84 60852016 Resurfacing of Roads 221 941 000,00 108 905 889,75 4 780 436,22 113 686 325,97 108 254 674,03 60862016 Louis Botha Corridor 10 000 000,00 - 10 000 000,00 60872016 Perth Empire Corridor 10 000 000,00 - 10 000 000,00 60882016 Westlake Road extension 20 000 000,00 19 027 356,97 19 027 356,97 972 643,03 60892016 James Street Extension 4 000 000,00 921,82 921,82 3 999 078,18 60902016 Spencer Road New Link 3 000 000,00 921,82 921,82 2 999 078,18 60912016 Jan Smuts Dualling 3 000 000,00 - 3 000 000,00 60922016 Ballyclare Drive Widening 2 000 000,00 921,82 921,82 1 999 078,18 60932016 Outspan Road Upgrading 2 000 000,00 921,82 921,82 1 999 078,18 60942016 Turffontein Corridor 10 000 000,00 - 10 000 000,00 60952016 Richards Drive Upgrade 2 000 000,00 921,82 921,82 1 999 078,18 60962016 Crownwood Road Upgrade 3 000 000,00 - 3 000 000,00 60972016 Katherine Road Upgrade 2 000 000,00 - 2 000 000,00 60982016 Construct Main Rd Thulani - Br 3 000 000,00 - 3 000 000,00 60012016 Gravel Rds Bramfischer 30 000 000,00 21 876 350,76 21 876 350,76 8 123 649,24 60022016 Gravel Rds Diepsloot 37 000 000,00 19 149 780,42 19 149 780,42 17 850 219,58 60032016 Gravel Rds Thulani-Doornkop 23 000 000,00 1 216 766,26 1 216 766,26 21 783 233,74

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Project Number Project Description Revised Budget Actual Expenditure Open Commitments Total Spend / Committed Budget Variance 60042016 Gravel Roads Drieziek 25 000 000,00 1 939 666,47 1 939 666,47 23 060 333,53 60052016 Gravel Roads Ivory Park 37 000 000,00 15 573 823,45 15 573 823,45 21 426 176,55 60062016 Gravel Roads Lawley 35 000 000,00 16 277 342,33 16 277 342,33 18 722 657,67 60072016 Gravel Roads Mayibuye 15 000 000,00 - 15 000 000,00 60082016 Gravel Roads Orange Farm 38 000 000,00 18 379 817,96 18 379 817,96 19 620 182,04 60092016 Gravel Roads Protea South 20 000 000,00 7 608 374,54 7 608 374,54 12 391 625,46 60102016 Gravel Roads Tshepisong 22 000 000,00 8 100 890,09 8 100 890,09 13 899 109,91 60112016 Gravel Roads Kaalfontein 3 000 000,00 - 3 000 000,00 60122016 Gravel Roads Poortje 3 000 000,00 - 3 000 000,00 60132016 Gravel Roads Slovoville 3 000 000,00 - 3 000 000,00 60172016 Naledi-Protea Bridge 18 500 000,00 10 699 055,77 10 699 055,77 7 800 944,23 60242016 Jabulan / Molapo Brdge 2 500 000,00 - 2 500 000,00 60252016 Pedestrian Bridge Kaalfontein 1 000 000,00 - - 1 000 000,00 60262016 Pedestrian Bridge Klipspruit 6 000 000,00 - - 6 000 000,00 60272016 Pedestrian Bridge Slovo Park 5 000 000,00 - - 5 000 000,00 60292016 Emergency SW Protea Glen 15 000 000,00 567 590,08 567 590,08 14 432 409,92 60432016 Conver Open Drains Bramfischer 10 000 000,00 7 911 598,96 7 911 598,96 2 088 401,04 60442016 Conver Open Drains Ivory Park 10 000 000,00 10 000 000,00 10 000 000,00 - 60452016 Conver Open Drains Orange Farm 20 000 000,00 588 425,16 588 425,16 19 411 574,84

TOTAL CAPITAL EXPENDITURE 1 415 241 000,00 404 161 756,70 40 754 013,57 444 915 770,27 970 325 229,73 PERCENTAGE SPEND/COMMITTED 31,4%

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Annexure D Company JRA – Q2 (Mid-Year) Company Performance – 2015-16 Performance

Programme 1: City Priority Programmes

(A) Customer Charter

Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve performance conformance) Action Plans Progress re Milestones (where performance is (Q2) behind schedule)

Budget Stream Budget (Q2)

1 Reinstatements % of Reinstatement of OPEX 100% of % of reported 100% Q2: Region A (78.95%) : 15/19 The recruitment for reported road reported Service Target not achieved Region B (0%) : 0/1 supervisors in Reg ion B excavations / trenches Reinstatement Requests Of the reported 332 Region C (81.63%): 40/49 is currently underway. completed by Service completed reinstatements, 275 Region D (46.15%) : 6/13 Interviews are stakeholders and Requests and resolved were completed within 3 Region E (39.28%): 11/28 completed and reinstated within 3 days completed and days (82,83 % against Region F (90.86%): placements are resolved within the target of 100%) 159/175 envisaged to be 3 days Region G (93.61%): 44/47 completed in the middle YTD: of Q3. There are options Target not achieved All regions failed to of overtime to address Of the reported 627 achieve their expected the backlog once the reinstatements, 500 target of 100%, the placements are done, were completed within 3 average target achieved is and workers are back to days (79,74 % against 82.83%. This is a 17.08% their posts. the target of 100%) improvement over Q1 (65.75%)

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve performance conformance) Action Plans Progress re Milestones (where performance is (Q2) behind schedule)

Budget Stream Budget (Q2)

2 Pothole repairs % of Potholes repaired OPEX 100% of % of reported 100% Q2: Region A (41.67%): 90/216 With capacity challenges within reported Service Target not achieved Region B (49.58%): the teams require 3-days Potholes Requests Of the reported 2396 178/359 overtime to address Service completed Potholes, 1514 were Region C (62.08%): service requests. In Requests and resolved completed within 3 days 352/567 addition, it is expected completed and (63.19 % against the Region D (71.7%): 236/329 that the implementation resolved within target of 100%) Region E (47.68%): of Jozi@Work will 3 days 165/346 provide the necessary YTD: Region F (80.09%): assistance to improve Target not achieved 193/241 performance. Of the reported 4790 Region G (90.1%): Potholes, 3193 were 293/325 completed within 3 days All regions failed to (66,66 % against the achieve their expected target of 100%) target of 100%, the average target achieved is 63.19%. There was 17.43% decline in performance over Q1 (80.62%)

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve performance conformance) Action Plans Progress re Milestones (where performance is (Q2) behind schedule)

Budget Stream Budget (Q2)

3 Traffic Signal % Traffic Signals OPEX 100% of % of reported 100% Q2: There has been a 13,99% 1. The implementation maintenance repaired within 24 hrs reported faulty Service Target was not achieved. improvement compared of the 24 hr. SMS facility Traffic Signals Requests Of the reported 489 with Q1 performance. (linking logged calls to Service completed faulty Traffic Signals, The average resolution standby cell phone) has Requests and resolved 431 were repaired time of 10.87 hrs is within assisted with the completed and within 24 hrs. (88.14% the 24 hour standard. marked improvement in resolved within against a target of 100%) signal repair 24 hrs The average resolution Staff resource constraints performance over the time to repair reported continue to hamper the last quarter. traffic signals was 10.87 effective operation of the hrs (against a standard department. !00% 2. A professional ethos of 24 hours) compliance with Service plan has been Standard cannot be implemented across the YTD: achieved with current staff Mobility & Freight Target was not achieved. levels. The appointment of department as a Of the reported 941 additional staff is subject foundation for faulty Traffic Signals, to additional funding improving performance. 780 were repaired (salaries) being approved This includes: within 24 hrs. (82,89% by the City. a. Doing things right first against a target of 100%) time The average resolution b. Pay attention to time to repair reported details traffic signals was 17.53 c. Understanding that hrs (against a standard problems require of 24 hours) solutions

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve performance conformance) Action Plans Progress re Milestones (where performance is (Q2) behind schedule)

Budget Stream Budget (Q2)

4 Incorrect Street % of incorrect street OPEX 100% of % of reported 100% Q2: There is a shortage of road Name spelling name spelling corrected reported Service Target was not achieved marking and signs team within 7 days incorrect Requests Of the 2 reported which was caused by the spelling of completed incorrect spelling of allocation of staff during street names and resolved Street Names, one was the decentralization of Service resolved within 7 days markings and signs Requests (50 %) activities to region B and C. completed and Furthermore, there is resolved within YTD: currently no contract in 7 days Target was not achieved place for street furniture Year to date, of the 2 and the paint contract was reported incorrect awarded towards the end spelling of Street Names, of Q2. This activity cannot one was resolved within be performed without 7 days (50 %) street name plates and paint. 5 Missing Manhole % of missing Manhole OPEX 100% of % of reported 100% Q2: Region A (0%): 0/17 A contractual dispute Covers covers replaced in 3 reported Service Target not achieved Region B (16.67% : 1/6 between the service replacement days missing Requests Of the reported 32 Region C (25%): 1/4 provider and the JRA in manhole covers completed Missing Manhole Region D (0 reported): respect of Terms and Service and resolved Covers, 2 were Region E (0 reported) Conditions in the Requests completed within 3 days Region F (0%) : 0/4 contract for the completed and (6,25 % against the Region G (0 reported) provision of alternative resolved within target of 100%) products (Manhole 3 days The contract for the Covers) is having a YTD: provision of manhole negative effect in Target not achieved covers was awarded late in respect of improving Of the reported 79 Q1. The supplier could not performance against this Missing Manhole deliver the manhole covers service standard. The Covers, 5 were due to the challenges with dispute has completed within 3 days the contract terms and subsequently been (6,33 % against the conditions. This resulted resolved and purchase target of 100%) in no manhole covers orders have been placed being delivered. on the service provider for the provision of alternative products.

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve performance conformance) Action Plans Progress re Milestones (where performance is (Q2) behind schedule)

Budget Stream Budget (Q2)

6 Clearing of % reported blocked OPEX 100% of % of reported 100% Q2: Region A (50%): 16/32 The JRA Fleet and Plant blocked storm storm water drains (Ki's) reported Service Target not achieved Region B (50.48%): 52/103 team has made water drains cleared within 3 days blocked kerb Requests Of the reported 1053 Region C (77.45%): provision to provide from time of logged call inlets (Ki's) completed Blocked kerb Inlets (Ki's) 134/173 more JETVAC machines Service and resolved , 734 were completed Region D (72.44%): to the depots in order to Requests within 3 days (69,71 % 213/294 improve the availability completed and against the target of Region E (38.3%): 59/154 of machines and to resolved within 100%) Region F (91.27%): improve outputs at 3 days 115/126 depot level. YTD: Region G (83.534%): Target not achieved 136/159 Of the reported 1860 Blocked kerb Inlets (Ki's) The availability of the , 1254 were completed Jetvac machine is low due within 3 days (67,42 % to breakdowns. against the target of Furthermore, it takes 100%) longer than three (3) days to clear a blocked ki, in some cases one (1) ki takes more than two (2) days to be cleared. This result in ki's being cleared long after the three (3) days KPI.

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve performance conformance) Action Plans Progress re Milestones (where performance is (Q2) behind schedule)

Budget Stream Budget (Q2)

7 Road marking % reported road OPEX 100% of % of reported 100% Q2: There is a shortage of road In Region B, other staff lanes / signs marking lanes / signs reported road Service Target not achieved marking and signs team members are currently repaired repaired within 3 days marking lanes / Requests Of the reported 2105 which was caused by the being trained to perform from time of logged call; signs Service completed faded road marking / allocation of staff during road marking and signs Requests and resolved damaged signs, 814 the decentralization of activities. RFQ's process completed and were completed within 3 markings and signs is used to acquire paint resolved within days (38,67 % against activities to region B and C. and other street 3 days the target of 100%) Furthermore, there is furniture. The paint currently no contract in contract is awarded, the YTD: place for street furniture work scheduled will be Target not achieved and the paint contract was attended to and Of the reported 4181 awarded towards the end backlogs cleared. faded road marking / of Q2. This activity cannot damaged signs, 1730 be performed without were completed within 3 street name plates and days (41,38 % against paint. the target of 100%)

YTD:

(B) Corridors of Freedom

Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve performance conformance) Action Plans Progress re Milestones (where performance is (Q2) behind schedule)

Budget Stream Budget (Q2)

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve performance conformance) Action Plans Progress re Milestones (where performance is (Q2) behind schedule)

Budget Stream Budget (Q2)

8 CATCH - Louis % implementation of CAPEX % Stormwater % 0% Procurement Q2: The bid document was Botha Corridor identified stormwater upgrade implementation of The target was met. approved and Section 32 Stormwater upgrades undertaken projects of SW upgrades Professional Achieved 0% against a appointment for the Masterplan and (as identified in the completed (as annual project Services target of 0%. appointment of Upgrading annual project plan) identified in the plan Professional Services was Renewal (Multi-year project) annual project YTD: granted. CORRIDORS OF plan) The mid-term target The letter of appointment FREEDOM > Preliminary Design was met. for the service provider Report (PDR); Preliminary Achieved 0% against a (Professional Services) > Detailed Design Design Report target of 0% has not been issued. Report (DDR); (PDR); > EIA application > Detailed submission; Design Report > WUL submission; (DDR); > Construction > EIA (upgrade) initiation application submission; > WUL submission; > Construction (upgrade) initiation (3.2 km SW upgrade as determined in annual project plan)

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve performance conformance) Action Plans Progress re Milestones (where performance is (Q2) behind schedule)

Budget Stream Budget (Q2)

9 CATCH - Empire % implementation of CAPEX % Stormwater % 0% Procurement Q2: The bid document was Perth Corridor identified stormwater upgrade implementation of The target was met. approved and Section 32 Stormwater upgrades undertaken projects of SW upgrades Professional Achieved 0% against a for the appointment of Masterplan and (as identified in annual completed (as annual project Services target of 0%. Professional Services was Upgrading project plan) identified in plan granted. Renewal (Multi-year project) annual project YTD: The letter of appointment CORRIDORS OF plan) The mid-term target for the service provider FREEDOM > Preliminary Design was met. (Professional Services) Report (PDR); Preliminary Achieved 0% against a has not been issued. > Detailed Design Design Report target of 0% Report (DDR); (PDR); > EIA application > Detailed submission; Design Report > WUL submission; (DDR); > Construction > EIA (upgrade) initiation application submission; > WUL submission; > Construction (upgrade) initiation (1.3 km SW upgrade as determined in annual project plan)

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve performance conformance) Action Plans Progress re Milestones (where performance is (Q2) behind schedule)

Budget Stream Budget (Q2)

10 CATCH - % implementation of CAPEX % Stormwater % 0% Procurement Q2: The bid document was Turffontein identified stormwater upgrade implementation of The target was met. approved and Section 32 Corridor upgrades undertaken projects of SW upgrades Professional Achieved 0% against a for the appointment of Stormwater (as identified in annual completed (as annual project Services target of 0%. Professional Services was Masterplan and project plan) identified in plan granted. Upgrading (Multi-year project) annual project YTD: The letter of appointment Renewal plan) The mid-term target for the service provider CORRIDORS OF > Preliminary Design was met. (Professional Services) FREEDOM Report (PDR); Preliminary Achieved 0% against a has not been issued. > Detailed Design Design Report target of 0% Report (DDR); (PDR); > EIA application > Detailed submission; Design Report > WUL submission; (DDR); > Construction > EIA (upgrade) initiation application submission; > WUL submission; > Construction (upgrade) initiation (1.3 km SW upgrade as determined in annual project plan)

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(C) Community Based Projects (CBP)

Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve performance conformance) Action Plans Progress re Milestones (where performance (Q2) is behind schedule)

Budget Stream Budget (Q2)

11 CBP - Gravel Km of identified gravel City - 1.080 Km of Km of gravel O km Scoping Q2: Scoping of the project is Roads roads resurface and CAPEX identified road upgraded The target was met. in progress . rehabilitation + stabilise (gravel roads gravel roads / stabilised Achieved 0km against stabilization – Gravelling) rehabilitated a target of 0km. (Region A) Sedibeng Street, (e.g.. resurface Kagiso Street in Rabie and stabilise) YTD: Ridge Ext.5 and The mid-term target Katanang Street in Sedibeng Street was met. Rabie Ridge Ext.4 (0.340 km), Achieved 0km against Kagiso Street a target of 0km. (0.320 km) in Ext.5 and Katanang Street (0.420 km) in Ext.4 12 CBP - Resurfacing Km of road Resurfacing City - 1.5 Km of road Km of road 1.5 Km of road Q2: (Region A) (Nanyuki Rd from CAPEX Resurfaced Resurfaced Resurfaced The target was met. Sunninghill Hospital to Achieved 1.5km of Malindi Rd) road resurfaced against a target of 1.5km.

YTD: The target was met. Achieved 1.5km of road resurfaced against a target of 1.5km. 13 CBP - Resurfacing Km of Resurfacing of City - 0 Km of road Km of 0 km Road Q2: Xinimbela Road was (Region A) Bulelwa Makomane CAPEX Resurfaced Resurfacing recommended The target was met. recommended for str, tarring of Phakwe for Achieved 0km against reconstruction in the and Xinimbela streets reconstruction a target of 0km. current contract.

YTD: The target was met. Achieved 0km against a target of 0km.

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve performance conformance) Action Plans Progress re Milestones (where performance (Q2) is behind schedule)

Budget Stream Budget (Q2)

14 CBP - Road Safety % Implementation of City - 100% % 0% Bid Q2: The scope of work for (Region A) Street calming CAPEX Implementation implementation specification The target was met. the project has been measures identified of identified of identified approval Achieved 0% against a clarified with the City. adjacent to Ebony Street calming Street calming target of 0%. Project specifications Park Primary measures as measures and BOQ drafted for Speed humps, per annual YTD: depot to price and in Kaalfontein project plan The mid-term target execute work as was met. planned. Achieved 0% against a target of 0% 15 CBP - New Traffic Traffic Signal installed City - 1 x Traffic Number of 0 Drilling for Q2: Applications for Signals (Region D) in Protea Glen on the CAPEX Signals installed Traffic Signals sleeves Target Achieved electrical power and Major Impala installed -ESKOM to Achieved 0 against 0 way leaves approval intersection install power were submitted to YTD: Eskom and JRA (Region Target Achieved D) respectively. Achieved 0 against 0 The Wayleave approval has been received. The quotation for electrical power was received and paid. Eskom to install power. The project is on track 16 CBP - New Traffic Traffic Signal installed City - 1 x Traffic Number of 0 Drilling for Q2: Applications for Signals (Region D) in Glen Ridge Ext 16 on CAPEX Signals installed Traffic Signals sleeves Target Achieved electrical power and Randfontein Road installed -ESKOM to Achieved 0 against 0 way leaves approval Intersection install power were submitted to YTD: Eskom and JRA (Region Target Achieved D) respectively. Achieved 0 against 0 The Wayleave approval has been received. The quotation for electrical power was received and paid. Eskom to install power. The project is on track

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve performance conformance) Action Plans Progress re Milestones (where performance (Q2) is behind schedule)

Budget Stream Budget (Q2)

17 CBP - Road Km Gravel Road City - 0.8 Km gravel Km of gravel 0 Km Contractor Q2: The tender was Rehabilitation Upgrading to surfaced CAPEX road upgraded road upgraded appointment The target was met. advertised and a and upgrading road; remaining (Box Cutting, to surface Achieved 0km against briefing session with (Region E) portion of Blandford Layer works) (part) a target of 0km. prospective bidders was Rd between Hyperion held in November 2015. and Witkoppen Rd as YTD: The contractor will be per annual project The mid-term target appointed in Q3. plan was met. (Multi year project) Achieved 0km against a target of 0km. Box Cutting; Layer works. 19 CBP - Pedestrian Planning preparation City - Preliminary Preliminary 0 Procurement Q2: The Environment Impact Foot Bridge for the Re- CAPEX Design Report Design Report process The target was met. Assessment is in (Region E) construction of foot for (PDR) (Tender Achieved 0 against a progress. bridge’ between River reconstruction advert) target of 0 . The procurement Park and Lombardy of Foot Bridge process for the East YTD: appointment of a The mid-term target consultant is in hand. Scoping; was met. The consultant will be Preliminary Design Achieved 0 against a appointed in Q3 Report (PDR) target of 0. 20 CBP - Stormwater Planning and design City - Preliminary Preliminary 0 Procurement Q2: The Environment Impact management for installation of CAPEX Design Report Design Report process The target was met. Assessment is in (Region E) Gabions (Ward 115, (PDR); (PDR); (Tender Achieved 0 against a progress. Klein Jukskei erosion EIA application EIA application advert) target of 0 . The procurement protection), Corlett submission; submission; process for the Drive. WUL WUL YTD: appointment of a submission submission The mid-term target consultant is in hand. Scoping; was met. The consultant will be Preliminary Design Achieved 0 against a appointed in Q3 Report (PDR); target of 0. EIA application submission; WUL submission

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve performance conformance) Action Plans Progress re Milestones (where performance (Q2) is behind schedule)

Budget Stream Budget (Q2)

21 CBP - Pedestrian Planning preparation City - Preliminary Preliminary 0 Procurement Q2: The depot has Accelerate the Foot Bridge for the construction of CAPEX Design Report Design Report process The target was met. implemented temporary appointment of the (Region F) a small bridge over for (PDR) (Tender Achieved 0 against a measures (culverts) for consultant. Denver Canal (adjacent reconstruction advert) target of 0 . pedestrian access across to Denver Hostel) of Foot Bridge the canal while the YTD: scoping for PDR for the Scoping; The mid-term target bridge design is in Preliminary Design was met. progress. Report (PDR) Achieved 0 against a target of 0. 22 CBP - Road % Roads Maintenance City - 100% % 30% Q2: Rehabilitation Implementation in CAPEX implementation implementation implementation(YTD The target was met and upgrading Region G as per annual of roads of Road 80%) and exceeded. (Region G) project plan maintenance Maintenance Achieved 50% against plan plan a target of 30%

YTD: The mid-term target was met. Achieved 100% against a target of 80% 23 CBP - Road % Dzadza Projects City - 100% % 30% Q2: Rehabilitation Road Maintenance CAPEX implementation implementation implementation The target was met and upgrading implementation as per of Dzadza of Road and exceeded. (Region G) annual plan Projects Road Maintenance (YTD 80%) Achieved 50% against Maintenance plan a target of 30%. plan YTD: The mid-term target was met. Achieved 100% against a target of 80%

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Programme 2 – Roads Management

(A) Roads - Renewal (Improvements / Upgrades)

Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where performance

Budget Stream Budget (Q2) is behind schedule) (Q2) 24 MOB - Guardrails. Km of Guardrail CAPEX 16 km of Km of Guardrail 0 km Procurement Q2: The bid specification Renewal Roads: installed /replaced Guardrail installed of contractor The target was met. was compiled and Construction and along main roads installed /replaced along Achieved 0km against approved by the Bid Upgrades /replaced along main roads a target of 0km. Specification JOHANNESBURG F main roads Committee for Regional YTD: approval for the The mid-term target advertisement in (Installation/replacement was met. January 2016. of guardrails along main Achieved 0km against roads.) a target of 0km. 25 BRID 05 - Le Roux % implementation of CAPEX 100% % 10% Contractor Q2: The construction Additional funds Avenue Widening. New preparation for road implementation implementation implementation appointment The target was not tender closed on 22 were requested Roads: Construction and construction (Le Roux of annual of annual met. May 2015 and served duringMid-year Upgrades HALFWAY Ave widening)as per project plan project plan Achieved 0% against at Bid Evaluation and budget review HOUSE ESTATE A annual project plan a target of 10% Adjudication process. Regional Implementation. Committee. The tender is at evaluation (Widening of Le Roux YTD: stage. Ave between The mid-term target Additional funds are Bekker/Janadel Street was not met. required for the and Old Pretoria Main as Achieved 0% against appointment of the a result of the doubling a target of 10% contractor. of Le Roux Ave Bridge Implementation. and traffic congestion.)

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where performance

Budget Stream Budget (Q2) is behind schedule) (Q2) 26 MOB - City Deep Freight % of road network CAPEX 100% % 0% Appointment Q2: The contractor was Hub. Renewal Roads: upgraded as per implementation implementation of contractor; The target was met. appointed and has Construction and annual project plan:- of annual of annual Achieved 0% against fully established site Upgrades CITY DEEP F (1 ) Rosherville Bridge project plan project plan a target of 0%. for Roscherville and City Wide and Road (DDR); (Multi-year Bonsmara Road (2) Bonsmara Road / project) YTD: construction. The (Road and traffic Rosherville Rd The mid-term target Cleveland road design management (Construction > DDR: was met. (DDR) preparations interventions in the City implementation); Rosherville Achieved 0% against progressed in Q2. Deep/Kaserne area to (3) Cleveland Bridge Bridge and a target of 0% solve mobility issues in (DDR) ; Road; this major freight traffic > DDR: hub.) Cleveland Bridge > Partial construction implementation of Bosmara Rd (20% of multiyear project)

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where performance

Budget Stream Budget (Q2) is behind schedule) (Q2) 27 MOB - Complete Streets Km road retrofit CAPEX 0.67 Km of Km road 0 km Contractor Q2: During Q2, the (Streets Alive). New projects completed as road retrofit retrofitted appointment The target was met. contractors were Roads: Construction and per annual annual projects (Cycle Lanes; Achieved 0km against appointed for Upgrades project plan in completed as Walkways) a target of 0km. Diepsloot and Orange JOHANNESBURG F City Soweto, Diepsloot, per annual Farm. Wide Ivory Park, Orange project plan YTD: Ivory Park Farm, Bram The mid-term target construction tender Fischerville, 0.67 km Cycle was met. closed and the BID is Alexandra and Lanes; Achieved 0km against at evaluation stage. Doornkop (multi year 0.67 Km a target of km. Soweto construction project) Walkways tender closed in December 2015 and is at BID evaluation stage. Bram Fischerville:- The construction tender was advertised and the briefing session was held in November 2015. Alexander/ Wyneberg construction tender has been compiled for approval. The BID will be advertised in Q3.

(B) Roads - Reconstruction / Rehabilitation

Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where performance

Budget Stream Budget (Q2) is behind schedule) (Q2)

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where performance

Budget Stream Budget (Q2) is behind schedule) (Q2) 28 REHAB - Road Km of roads CAPEX 16.3 km of Km of road 3.2 km of road Q2: The project has been It is envisaged that Rehabilitation and rehabilitated as roads rehabilitated rehabilitated The target was not delayed by SCM contracts will be Reconstruction identified in rehabilitated met. processes. Various awarded in January. Programme. Renewal Pavement Achieved 0,9 km of contracts served at No alternative Roads: Construction and Management System road rehabilitated BAC in December measures are in Upgrades (PMS) against a target of 3.2 2015. place. JOHANNESBURG F City km. Value of contracts is Wide more than actual YTD: budget. (Roads in very poor The mid-term target condition all over the was not met. Phase 1 Construction City that require urgent Achieved 0,9 km of progress: intervention according to road rehabilitated Region A and B: PMS to improve VCI against a target of 3.2 Construction in (Visual Condition Index). km. progress at 20%. ) Region C and D: Construction in progress at 25%. Region E , F: Construction is at 99% and Region G: 100% compete. Phase II: Progress Region A- Tender closed in May 2015 and the BID is at evaluation stage. Region B,C and E construction tender closed in June 2015 and the BID is at evaluation stage. Region D, F and G: contractors were appointed and construction commenced

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(C) Roads – Resurfacing

Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where performance

Budget Stream Budget (Q2) is behind schedule) (Q2) 29 RESUR - Resurfacing of Lane Km of roads CAPEX 506.96 Lane Km Lane Km of 228.13 Lane Km of Q2: The delay was due to Work is accelerating Roads - City Wide. resurfaced (CAPEX) of road road resurfaced road resurfaced The target was not inspections that were and the project will Renewal of Roads: city-wide to improve resurfaced met. conducted for be implemented as Rehabilitation the visual condition (YTD 304.17 Lane Achieved 186 lane km treatment to be planned. JOHANNESBURG City index as identified in Km) of road surfaced applied on identified Wide Pavement against a target of streets. Management System 228.13 lane km. (PMS) YTD: The mid-term target was not achieved. Achieved 296 lane km of road surfaced against a target of 304.17 lane km. 30 Resurfacing, Drainage % of roads resurfaced CAPEX 100% % 10% Appointment Q2: Projects implemented and miscellaneous Bridge (M1 Motorway) implementation implementation of consultants The target was met. in partnership with upgrade (M1 Double resurfacing of roads of annual of annual and Achieved 10% against SANRAL. The Decker Bridge) city-wide to improve project plan project plan contractors a target of 10%. consultant has been the visual condition appointed. index according to YTD: annual project plan The mid-term target was met. a) Upgrade of M1 to Achieved 10% against GFIP (Gauteng a target of10% Freeway Improvement Project) standards (10%)

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where performance

Budget Stream Budget (Q2) is behind schedule) (Q2) 31 (b) Repairs of Double Q2: The contractor was Decker Bridge (50%) The target was met. appointed and the Achieved 10% against inception meeting was a target of 10%. held in October 2015. The baseline program YTD: was received. The mid-term target was met. Achieved 10% against a target of10% 32 (c.) Repairs of Oxford Q2: The contractor has Rd & Federation The target was met. been appointed for Bridges (40%) Achieved 10% against Oxford Road and a target of 10%. Federation Road by SANRAL. The YTD: contractor has The mid-term target commenced with the was met. execution of work. Achieved 10% against a target of10%

(D) Roads – Routine Maintenance

Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where performance

Budget Stream Budget (Q2) is behind schedule) (Q2)

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where performance

Budget Stream Budget (Q2) is behind schedule) (Q2) 33 According to PMS light Implementation of OPEX Implementation Deep Patching Deep Patching Q2: The asphalt plant had road rehabilitation work Light roads of Light roads (m2); 6800 m2; Target partially a breakdown is urgently required to rehabilitation (as per rehabilitation Skin Patching Skin Patching 4400 achieved therefore impacting prolong the life of roads VCA/VCI) as per as per (m2); m2; negatively on in poor condition Implementation Plan Implementation Milling (L/Km): Milling 2 L/Km: Deep Patching: 6368 performance. between 5 to 6 years :- Deep Patching Plan:- Crack Sealing Crack Sealing m2 against target of depending on type of (m2); (Kg) 13200 Kg 6800 m2 (93.6%); surface treatment. It Skin Patching (m2); Deep Patching Skin Patching: 3890 includes all regions plus Milling (L/Km): 34000 m2; m2 against a target of access to motorways. Crack Sealing (Kg) Skin Patching 4400 m2 (88.41%); 22000 m2; Milling: 0 L/Km Milling 10 against a target of 2 L/Km: L/km (0%): Crack Sealing Crack Sealing: 15820 52800 Kg Kg against a target of 13,200 kg (119.85%)

YTD Target partially achieved Deep Patching: 14211 m2 against target of 13600 m2 (>100%); Skin Patching: 5297 m2 against a target of 8800 m2 (60.2 %); Milling: 0 L/Km against a target of 4 L/km (0%): Crack Sealing: 22765 Kg against a target of 26400 kg (86.2%)

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where performance

Budget Stream Budget (Q2) is behind schedule) (Q2) 34 Repair Footways, Kerbs , % implementation of OPEX 90% % 90% of quarterly Q2: Due to on-going Depots will continue Gutters, Patching, Asset Preservation implementation implementation target Target was not human resource to manage these Guardrails, Vegetation programme as per of Regional of Regional implemented achieved incapacity, these activities given the Control Regional Operations Operations Operations During the quarter, activities continue to constraints. Some of Implementation Plan Implementation Implementation the JRA achieved 59.3 suffer as depots these activities are (Repair Footways, Plan Plan % of the prioritise KPIs planned to be Kerbs , Gutters, implementation plan addressed under Patching, Guardrails, (Act 2.34) against a J@W program Vegetation Control ) target of 90% (65.9%)

YTD: Target was not achieved During the quarter, the JRA achieved 81.1 % of the implementation plan (Act 2.34) against a target of 90% (90.1%)

(E) Gravel Roads – Routine Maintenance

Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where performance

Budget Stream Budget (Q2) is behind schedule) (Q2)

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where performance

Budget Stream Budget (Q2) is behind schedule) (Q2) 35 Gravel Road Lane Km of gravel OPEX 2000 Lane Km Lane Km of 400 Lane Km of Q2: The planning of this Depots continue to Maintenance road maintained of gravel road gravel road gravel road Target was achieved activity has improved improve their (blading, re-graveling, maintained maintained maintained 434 Lane km of gravel resulting in improved planning on this rip and re-shaping) road was maintained performance activity. This will (YTD= 1000 Lane against a target of compared with that of enable depots to Km) 400 Lane Km Q1 (292 Lane Km) recover on lost times in order to YTD: achieve The target was not Implementation achieved. plan targets. 813 Lane km of gravel road was maintained against a target of 1000 Lane Km

(F) Gravel Roads – Gravel Roads to Surfaced Roads

Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2)

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 36 Upgrade: Gravel Roads Km of gravel roads CAPEX 7.1 Km of km of gravel 0 km Construction Q2: Construction is to surfaced : BRAM surfaced : gravel roads roads surfaced commencement The target was met. progressing well and FISCHERVILLE BRAM FISCHERVILLE surfaced Achieved 0km at 57% complete as against a target of per the project plan. 0km.  Length of road asphalt laid: 2.5 km YTD:  Length of road base The mid-term target completed: 5.0 km was met.  Length of sub base Achieved 0km completed: 1.4 km against a target of  Length of roadbed 0km. cut 0.5 km  Stormwater pipes laid : 5.6 km. 37 Upgrade: Gravel Roads Km of gravel roads CAPEX 8 km of gravel km of gravel 0 km Construction Q2: Construction is to surfaced : ORANGE surfaced : roads surfaced roads surfaced commencement The target was met. progressing well and FARM ORANGE FARM Achieved 0km is 65% complete as against a target of per the project plan, 0km. The new construction bid specification YTD: document was The mid-term target approved for was met. advertisement in Achieved 0km January 2016. against a target of  Length of road km. asphalt laid: 3.115 km  Length of road base completed: 1.04 km  Length of sub base completed: 1.945 km  Length of roadbed completed: 0.5 km  Stormwater pipes laid: 5.28 km

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 38 Upgrade: Gravel Roads Km of gravel roads CAPEX 5.3 km of gravel km of gravel 2 km of gravel Procurement Q2: Construction is in to surfaced : DIEPSLOOT surfaced: roads surfaced roads surfaced roads surfaced process (Phase The target was progress and is 95% WEST EXT.3 DIEPSLOOT WEST 2 contractor) exceeded. complete. EXT.3 Achieved 4,68km of  Length of road gravel roads surfaced asphalt laid: 5.646 against a target of km 2km.  Stormwater pipes laid : 2.4 km YTD:  Gravel Roads The mid term target Surfaced was exceeded. (completed): 4.68 Achieved 4,68km of km gravel roads surfaced against a target of 2km. 39 Upgrade: Gravel Roads Km of gravel roads CAPEX 3 km of gravel km of gravel 0 km Construction Q2: The site handover and to surfaced : surfaced ; roads surfaced roads surfaced commencement The target was met. inception meetings Doornkop/Thulani; DOORNKOP Achieved 0km was held in November DOORNKOP It also against a target of 2015, the delay in includes required 0km. construction interventions in Protea commencement was (R5m). YTD: due to the late The mid-term target appointment of the was met. consultant. The site Achieved 0km establishment is in against a target of progress and 0km. construction has commenced with the exposure of underground services.

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 40 Upgrade: Gravel Roads Km of gravel roads CAPEX 6.8 Km of km of gravel 0 km Construction Q2: Phase I construction is to surfaced : LAWLEY surfaced : gravel roads roads surfaced commencement The target was met. in progress and is 48% EXT.1 LAWLEY EXT.1 surfaced Achieved 0km complete, the against a target of contractor is closely 0km. monitored to ensure that work is YTD: completed as per The mid-term target program. was met. Phase II construction Achieved 0km is progressing well against a target of and is 44% complete. 0km.  Length of sub base completed: 0.54 km  Length of roadbed completed: 3.66 km  Stormwater pipes laid: 5.205 km

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 41 Upgrade: Gravel Roads Km of gravel roads CAPEX 9 km of gravel km of gravel 0 km Construction Q2: Phase I construction is to surfaced : IVORY PARK surfaced : roads surfaced roads surfaced commencement The target was met. 90% complete, work EXT.9 IVORY PARK EXT.9 Achieved 0km has delayed due to against a target of work stoppages and 0km. contractor’s cash flow challenges. YTD: Phase II is progressing The mid-term target well and is 55% was met. complete. Achieved 0km Phase III- The against a target of preliminary design 0km. was approved, the consultant progressed with detailed design report, due to unavailability of funds for the third phase of the project, the construction tender advertisement (Phase III) was deferred to February 2016.  Length of road asphalt laid: 1.936 km  Length of road base completed: 2.114 km  Length of sub base completed: 0.899 km  Length of roadbed completed: 1.32 km  Stormwater pipes laid : 8.035 km

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 42 Upgrade: Gravel Roads Km of gravel roads CAPEX 2 km of gravel km of gravel 0 km Construction Q2: Construction is to surfaced : Protea surfaced : roads surfaced roads surfaced commencement The target was met. progressing well and South Ext 1 PROTEA SOUTH EXT 1 Achieved 0km is 28% complete with against a target of stormwater pipes 0km. installation and laying of imported material. YTD:  Length of road base The mid-term target complete: 0.1 km was met.  Length of sub base Achieved 0km completed: 0.125 against a target of km 0km.  Length of roadbed completed: 2.12 km  Stormwater pipes laid : 1.796 km

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 43 Upgrade: Gravel Roads Km of gravel roads CAPEX 6.2 Km of km of gravel 0 km Construction Q2: Phase I construction is to surfaced : surfaced : gravel roads roads surfaced commencement The target was met. in progress and is 95% TSHEPISONG TSHEPISONG surfaced Achieved 0km complete. against a target of Phase II construction 0km. is in progress and is 40% complete. YTD: Phase III-The The mid-term target investigations for was met. designs by the Achieved 0km appointed consultant against a target of progressed in Q2. 0km.  Length of road asphalt laid: 2 km  Length of road base completed: 2.4 km  Length of sub base completed: 2.4 km  Stormwater pipes laid : 7.8 km

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Programme 3 – Bridge Management

(A) Bridges – Planning

Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where performance

Budget Stream Budget (Q2) is behind schedule) (Q2) 44 BRID 20 - Conrad Drive Reconstruction of CAPEX 1 Bridge Number of 0 EIA Q2: The traffic study JRA is highly Bridge; Blairgowrie. Conrad Drive Bridge reconstructed bridges submission; The target was met. reports was not dependent on Renewal Bridges over Braamfontein reconstructed WULA Achieved 0 against a approved, the external authorities (Pedestrian and Vehicles) Spruit for road submission; target of 0. consultant is revising for the conclusion of CRAIGHALL B WARD widening and PDR comments. the PDR. increase in YTD: Still awaiting approval stormwater capacity. The mid-term target from GDARD (EIA and was met. WUL). There is no Achieved 0 against a indication when target of 0. approval will be granted. 45 BRID 20 - Bridges: Partial construction CAPEX Partial Pillars, Piers, Construction in Construction Q2: Due to additional The piling is in Overtopping (Flooding). of 3 bridges construction of Reinforced progress of Pillars, The target was met. piling that was progress to Renewal Bridges (Overtopping) as per 3 bridges earth fill, Piers, Construction executed, the accelerate progress (Pedestrian and Vehicles) annual project plan (Overtopping): Beams Reinforced commenced and in progress of the JOHANNESBURG F City Bridges: Overtopping Pillars, Piers, earth fill, progress. project was delayed. Wide (Flooding), City Wide Reinforced Beams earth fill, Beams YTD: (Ten major bridges (and (Pillars, Piers, The mid-term target 10 minor structures also) Reinforced earth fill, was met. that overtop in large Beams) Construction storms because of their commenced and in low capacity need to be progress. upsized. Investigate reasons for overtopping and safety problems and provide solutions. Bridges also need upgrade and rehabilitation.

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(B) Bridges – Construction (New)

Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where performance

Budget Stream Budget (Q2) is behind schedule) (Q2) 46 BRID 30 - Jabulani - Planning and CAPEX Preliminary Preliminary 0 PDR, EIA Q2: The Environmental Molapo Bridge. New preparation for Design Report Design Report initiation The target was met. Impact Assessment Bridges (Pedestrian and Bridge construction (PDR); (PDR); Achieved 0 against a (EIA) is in progress, Vehicles) JABULANI D as per annual project EIA application EIA application target of 0.. investigations are Ward plan : Jabulani - submission; submission; progress, the approval Molapo Bridge: New YTD: has been obtained (New bridge over the Bridges (Pedestrian The mid-term target from Eskom to railway to provide access and Vehicles) as per was met. proceed with further to development zone. annual project plan Achieved 0 against a assessments. Requires investigation target of 0. The preparation of the and preliminary work. ) Preliminary Design Water Use License Report (PDR); (WUL) application is in EIA application hand. submission; The Traffic Impact Assessment (TIA) study is in progress. 47 BRID 05 - Naledi/Protea Bridge construction CAPEX 1 Bridge Number of 0 Construction Q2: The project is Bridge (Between Wards as per annual project constructed bridges in progress The target was met. progressing well, the 20 and 14). New Bridges plan - Naledi/Protea reconstructed Achieved 0 against a first phase of the (Pedestrian and Vehicles) Bridge - New Bridges target of 0. project is complete. NALEDI D Regional (Pedestrian and Eskom has removed Vehicles) YTD: electric pylons for (Construction of a The mid-term target construction linkage across the was met. resumption. railway line to provide Achieved 0 against a safety for pedestrians target of 0. and eventually shorten the vehicular movement in the area. )

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where performance

Budget Stream Budget (Q2) is behind schedule) (Q2) 48 MISCL - Pedestrian % Implementation - CAPEX 100% % 0% Appointment Q2: The construction Bridge in Klipspruit West. construction of implementation implementation of contractor The target was met. tender closed in New Bridges (Pedestrian Bridge as per annual of bridge of bridge Achieved 0% against August 2015 and the and Vehicles) KLIPSPRUIT project plan - construction as construction a target of 0%. BID is at evaluation WEST D Ward Pedestrian Bridge in per annual stage Klipspruit West - New project plan YTD: (Pedestrian railway Bridges (Pedestrian The mid-term target crossing at Fuscia Road in and Vehicles) was met. Ward 11 (eventually Achieved 0% against vehicular) to safely a target of 0% connect Klipspruit West and Chiawelo at Fuscia and Foxglove Rd.) 49 MISCL - Pedestrian % Implementation - CAPEX 100% % 0% Appointment Q2: The construction Bridge in Slovo Park New construction of Implementation implementation of contractor The target was met. tender closed in Bridges (Pedestrian) Bridge constructed as - construction of bridge Achieved 0% against August 2015 and the SLOVO PARK per annual project of Bridge construction a target of 0%. BID is at evaluation plan constructed as stage per annual YTD: project plan The mid-term target was met. Achieved 0% against a target of 0%

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Programme 4 – Stormwater Management

(A) Stormwater – Planning

Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 50 RAMS - Stormwater Number of Wards CAPEX 64 Wards Number of 21 Wards Q2: The bid specification The Stormwater Asset Monitoring completed in respect completed in Wards completed in The target was not for consultant’s Asset condition System. New Computer of Stormwater Asset respect of completed in respect of met. appointments was audit inspections Software condition audit Stormwater Asset respect of Stormwater Asset No (0) Stormwater approved for will be accelerated JOHANNESBURG City (Visual Condition condition audit Stormwater condition audit Asset condition advertisement. The by the consultant Wide assessments) (Visual Condition Asset condition audits were late appointment of when appointed . assessments) audit completed against a consultants has The project will be target of 21. resulted in a delay in completed by June the project 2016. YTD: The mid-term target was not met. No (0) Stormwater Asset condition audits were completed against a target of 21.

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 51 MISCL - Integrated Identified CAPEX Stormwater Master Stormwater 0 SWMP in Q2: SMP development is Roads and Stormwater Stormwater Master Planning Master progress The target was met. in progress for the Master planning. New Planning completed completed: Planning Achieved 0 against a following Areas: Stormwater as per areas (SWMP) target of 0. 1. Fine Town and Management Projects identified in the 1.Ivory park Ext 7, 6, Ennerdale South. JOHANNESBURG F City annual project plan. 5,2 YTD: 2. Ebony Park. Wide 2. Zandspruit The mid-term target 3. Weilers Farm and 3. Carlsworld was met. Sweetwater's. (Determination of 4. Achieved 0 against a 4. Carlswald. floodlines and all the Finetown/Ennerdale target of 0. 5. Chartwell. roads and stormwater south 6. Zandspruit. studies as part of master 5. Weilers farm/ 7. Western Quardrant planning throughout the Sweetwater of Region D. City of Johannesburg.) 6. Midrand 8. Devland. (Development Instructions have Node). been issued, and 7. 3rd Road execution plan has (Development been initiated. Node). 8. Chartswell Sub Quarter 2 progress: catchments SMP development is (Development in progress for the Node) following Areas: 9. Carlswald Sub 1. Fine Town and catchment Ennerdale South. (Development 2. Ebony Park. Node) 3. Weilers Farm and Sweetwater's. 4. Carlswald. 5. Chartwell. 6. Zandspruit. 7. Western Quardrant of Region D. 8. Devland. Instructions have been issued, and execution plan has just been initiated.

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 52 SW Asset Monitoring Number of Wards CAPEX 64 Wards assessed - Number of 0 Appointment Q2: The bid specification BID Evaluation and assessed - SW Asset SW Asset Wards assessed of consultant The target was met. for consultant’s Adjudication for the Monitoring as per Monitoring (SW Asset Achieved 0 against a appointments was appointment of annual project plan Monitoring) target of 0. approved for consultant to be advertisement fast-tracked. YTD: The mid-term target Once consultants is was met. appointed, more Achieved 0 against a inspection teams target of 0. will be deployed on site to complete the project in time

(B) Stormwater - Network development and Upgrading (Formal stormwater network in all currently un-serviced previously disadvantaged areas)

Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2)

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 53 CATCH 10 - Emergency Implementation of CAPEX Implementation of Metres SW 0 Appointment Q2: The new construction Evaluation and Stormwater Emergency Emergency pipes installed; of contractor The target was met. tender was Adjudication for the Improvement (Multi Stormwater Stormwater Achieved 0 against a advertised in October appointment of the year): Protea Glen Ext 1- Improvements - Improvements: Number of target of 0. and closed on in contractor to be 4 (Phase 1-5). New Protea Glen Ext 1-4 1200 diameter = 75 Manholes November 2015 for fast-tracked. Stormwater Catchments (Phase 1-5) projects m installed; YTD: evaluation. PROTEA GLEN D Ward as per annual project 1050 diameter = The mid term target plan 535 m Number of was met. (Upgrading of (Multi-year): 900 diameter = Kerb Inlets Achieved 0 against a stormwater drainage SW pipes installed 890 m installed target of 0. network to eliminate (m); 750 diameter = ponding of the area. ) Manholes installed 540 m (number); 600 diameter = Kerb Inlets (number). 106 m 450 diameter = 144 m Number of manholes = 46 Number of kerb inlets = 44

54 REHAB - Rehabilitation % Rehabilitation of CAPEX 100% Rehabilitation % 10% Rehabilitation Appoint Q2: The contractor was of Open Channels City Open Channels City of Open Channels Rehabilitation of Open Channels contractor The target was met. appointed and Wide. Renewal Wide Project City Wide as per of Open Achieved 10% established on site. Stormwater completed as per annual plan Channels City Rehabilitation of Management Projects annual project plan Wide Open Channels JOHANNESBURG F City against a target of Wide 10%.

(This project is exclusive YTD: of the Conversion of The mid-term target Open Drains was met. programme; and entails Achieved 10% the rehabilitation of Rehabilitation of stormwater open Open Channels channels City Wide in against a target former old stormwater of10% structures.)

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(C) Stormwater - Network development and upgrading (Conversion of open SW channels to underground systems)

Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2)

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 55 CONV - Conversion of Km of Open Drains CAPEX 0.8 km of open SW Km of open SW 0 km Construction Q2: Construction of the Open Drains to converted to drains converted to drains in progress The target was met. project is complete. Underground/Covered Underground/Covered underground SW converted Achieved 0.8 Km of The annual target of Drains in Bram Drains in Bram systems open SW drains 0.8 km of open Fischerville. Renewal Fischerville Project converted against a stormwater drains Stormwater completed as per target of 0 km. converted to Management Projects annual project plan underground systems BRAM FISCHERVILLE C YTD: has been completed: Ward The mid-term target  28m of 3000 mm X was met. 1500 mm portal Achieved 0.8 Km of culver in Unity open SW drains Street, converted against a  245m of 1800 mm target of 0 km. X1800 mm portal culvert Unity Street,  177m of 1800 mm X 1500 mm portal culvert Unity Street,  55m of 825 mm pipe in Amandla Street,  181m of 1500 mm pipe in Botswana Street,  92m of 2400 mm X 1500 mm portal culvert in Ghana Street,  22m of 1200 mm pipe in Amandla Stre

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 56 CONV - Conversion of Km of Open Drains CAPEX 4 km of open SW Km of open SW 0 km Construction Q2: Construction is Open Drains to converted to drains converted to drains in progress The target was met. progressing well and Underground/Covered Underground/Covered underground SW converted Achieved 0km is 50% complete Drains in Ivory Park and Drains in Ivory Park systems against a target of  540m of 450mm surrounding areas. Project completed as 0km. pipes laid, Renewal Stormwater per annual project  965m of 600mm Management Projects plan YTD: pipes laid, IVORY PARK EXT.7 A The mid-term target  80mm of 750mm Ward was met. pipes laid, Achieved 0km  132m of 900mm against a target of pipes laid, 0km.  48m of 1050mm pipes laid 57 CONV - Conversion of Km of Open Drains CAPEX 0.65 km of open SW Km of open SW 0 km Procurement Q2: The construction Open Drains to converted to drains converted to drains process The target was met. tender closed in Underground/Covered Underground/Covered underground SW converted (contractor) Achieved 0km November 2015 and Drains in Ivory Park and Drains in Orange Farm systems against a target of the BID is at surrounding areas. Project completed as 0km. evaluation stage. Renewal Stormwater per annual project Management Projects plan YTD: ORANGE FARM A Ward The mid-term target was met. Achieved 0km against a target of 0km.

(D) Stormwater – Rehabilitation and Maintenance

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 58 MISCL - Dam Safety Construction CAPEX Refurbishment of Refurbished 0 Construction Q2: Construction Rehabilitation Renewal implementation of upstream Dam Dam Wall; in progress The target was met. progressed and is Stormwater Emmerentia Dam Wall Wall; Rehabilitated Achieved 0km 72% complete. Management Projects rehabilitation as per Rehabilitation of Dam outlet against a target of JOHANNESBURG F City annual project plan: Dam outlet channels 0km. Wide channels from > Refurbishment of slipway YTD: (Updating of inspections upstream Dam Wall; The mid-term target and urgent > Rehabilitation of was met. rehabilitation work to Dam outlet channels Achieved 0km comply with statutory from slipway against a target of legislation and ensure 0km. public safety. Dams are moving to EISD; )

(E) Stormwater – Routine Maintenance

Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2)

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 59 Repair and Clearing of Number of OPEX 55000 Stormwater Number of SW 11000 SW drains / Q2: HCM must swiftly Stormwater Systems Stormwater (SW) (SW) drains / Kerb drains / Kerb Kerb Inlets (Ki's) Target achieved conclude all the (Ki's) drains / Kerb Inlets Inlets (Ki's) cleaned Inlets (Ki's) cleaned A total of 13456 recruitment (Ki's) cleaned cleaned (YTD= 27500) Kerb Inlets (Ki's) processes for all were cleaned and funded vacancies. completed against a Furthermore, some target of 11000. of the work is allocated to YTD: Jozi@Work A total of 28493 programme. Kerb Inlets (Ki's) were cleaned and completed against a target of 27500

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Programme 5 – Mobility Management

(A) Mobility – Network Development

Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 60 MOB - Alternative Number of Energy CAPEX 225 Energy Number of 70 Intersections Q2: Energy: Alternative efficiency: Light efficiency: Light Traffic Signal fitted with Light Target achievedA Power Sources (LED). Emitting Diodes(LED) Emitting Intersections Emitting total of 70 traffic New Mobility: installed at traffic Diodes(LED) fitted with Diodes(LED) (YTD signal intersections Intelligent signals (overheads installed Energy 95) were fitted with Transportation System only). efficiency: Light hardware related to & Networks Emitting Light Emitting JOHANNESBURG F City Diodes(LED) Diodes (LED ) Wide against a target of 70.Project is on track

YTD: A total of 95 traffic signal intersections were fitted with hardware related to Light Emitting Diodes (LED ) against a target of 95.Project is on track

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 61 MOB - Alternative Number of CAPEX 125 Uninterruptible Number of 40 UPS Installed Q2: There were a delay in UPS's were now Energy: Alternative Uninterruptible Power Power Supply (UPS) Uninterruptible Target was not the delivery of the delivered and Power Sources (UPS). Supply (UPS) units units installed Power Supply achieved UPS's installation will New Mobility: installed at critical (UPS) units There were no (0) commence in Intelligent identified installed UPS's installed Procurement January 2016. Transportation System intersections. against a target of finalised and the Installation time is & Networks 40. UPS's were delivered, relatively short and JOHANNESBURG F City ready for installation the YTD target will Wide YTD: be met . Target was not achieved There were no (0) UPS's installed against a target of 40. 62 MOB - CCTV Cameras. Number of CAPEX 9 intersections Number of 3 intersections Q2: The project is ahead New Mobility: intersections fitted fitted with CCTV intersections fitted with CCTV Target achieved of schedule Intelligent with CCTV cameras to cameras fitted with cameras A total of 5 traffic Transportation System monitor intersections CCTV cameras signal intersections & Networks and roads. were fitted with JOHANNESBURG F City CCTV equipment Wide against a target of 3.

YTD: A total of 5 traffic signal intersections were fitted with CCTV equipment against a target of 3.

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 63 MOB - Remote Number of traffic CAPEX 150 traffic signal Number of 40 traffic signal Q2: Project is ahead of Monitoring: Urban signal intersections intersections fitted intersections intersections Target was schedule. Traffic Control (UTC). fitted with Remote with Remote fitted with fitted with RMU's achieved The annual target of New Mobility: Monitoring Units Monitoring Units Remote (YTD = 60) A total of 48 Remote installing 75 Remote Intelligent (RMU's) as per annual (RMU's) Monitoring Monitoring Units Monitoring Units has Transportation System project plan Units (RMU's) (RMU's) were been completed. & Networks installed at traffic JOHANNESBURG F City signals intersections Wide against a target of 40.

TYD: Target was achieved A total of 75 Remote Monitoring Units (RMU's) were installed at traffic signals intersections against a target of 60.

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 64 MOB - Traffic Signal Number of traffic CAPEX 45 traffic signal Number of 15 traffic signal Q2: Project is ahead of Adaptive Control (TSAC). signal intersections intersections fitted traffic signal intersections Target achieved schedule New Mobility: fitted with Adaptive with Adaptive intersections fitted with A total of 18 traffic Intelligent Control detection Control detection fitted with Adaptive Control signal intersections Transportation System devices as per annual devices Adaptive detection devices were fitted with & Networks project plan Control adaptive control JOHANNESBURG F City detection (YTD 25) detection devices Wide devices against a target of 15.

YTD: A total of 34 traffic signal intersections were fitted with adaptive control detection devices against a target of 25.

(B) Mobility – Construction

Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2)

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 65 MOB - Installation of Number of New CAPEX 2 New Traffic Number of new 0 Design, Q2: Designs, power and New Warranted Traffic Warranted Traffic Signals installed at Traffic Signals Procurement The target was met. Wayleave Signals in All Wards City Signals installed as per Warranted installed of contractor Achieved 0 against a applications for the 2 Wide. New Mobility: annual project plan intersections target of 0. new traffic signal Intelligent intersection have Transportation System YTD: been completed; & Networks The mid-term target JOHANNESBURG F City was met. the first new traffic Wide Achieved 0 against a signal is expected to target of 0. be switched on in Q3

(C) Mobility – Renewal

Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 66 MOB – Re-cabling of Old Number of Traffic CAPEX 90 Traffic Signal Number of 20 Traffic Signal Q2: Project is ahead of Redundant Cables at Signal intersections intersections re- Traffic Signal intersections re- Target was achieved schedule Signalized Traffic re-cabled cabled intersections cabled A total of 34 Traffic Intersections. Renewal (replacement of Old re-cabled (YTD = 30) Signals were re- Mobility: Intelligent Redundant Cables at cabled against a Transportation System Signalized Traffic target of 20. & Networks Intersections) JOHANNESBURG F City YTD: Wide Target was achieved. A total of 57 Traffic Signals were re- cabled against a target of 30.

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 67 MOB - SARTSM: Number of traffic CAPEX 50 traffic signal Number of 10 traffic signal Q2: Upgrade of Existing signal intersections intersections traffic signal intersections Target was achieved Signalised Intersections. upgraded to SARTSM upgraded intersections upgraded to A total of 22 traffic Renewal Mobility: requirements as per upgraded to SARTSM signal intersections Intelligent annual project plan SARTSM (YTD = 20) were upgraded to Transportation System SARTSM standards & Networks against a target of JOHANNESBURG F City 10. Wide Project is ahead of schedule

YTD: Target was achieved A total of 38 traffic signal intersections were upgraded to SARTSM standards against a target of 20. Project is ahead of schedule

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 68 MOB - Upgrading Number of controllers CAPEX 200 controllers Number of 50 controllers Q2: The project is on Controllers . Renewal hardware upgraded at hardware upgraded controllers hardware Target was track Mobility: Intelligent Traffic Signal at Traffic Signal hardware upgraded achieved Transportation System intersections as per intersections upgraded at (YTD = 100) A total of 51 traffic & Networks annual project plan Traffic Signal signal controller JOHANNESBURG F intersections hardware were Regional upgraded against a target of 50.

YTD: A total of 101 traffic signal controller hardware were upgraded against a target of 100. The project is on track

(D) Mobility - Planning

Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2)

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 69 MOB - Intelligent % Implementation of CAPEX 95% % % 25% Purchase and Q2: Implementation of Transport Systems (ITS) Intelligent Transport implementation of implementation implementation of deployment Target was achieved the ITS DBOM project Projects. New Mobility: Systems (ITS) Project Intelligent of Intelligent Intelligent of ITS 25 % of the has commenced with Intelligent as per annual project Transport Systems Transport Transport Systems implementation installation of on- Transportation System plan:- (ITS) Project as per Systems (ITS) plan was completed street equipment & Networks annual project plan Project (Purchase and against a target of (such as CCTV JOHANNESBURG F City Design, purchase and deployment of 25% cameras, electronic Wide deployment of ITS ITS) signage etc.) on the YTD: M1 & M2 freeways. Target was achieved This Freeway 25 % of the Management Project implementation will be completed in plan was completed June 2017. The against a target of related Arterial 25% Management project (on the key arterials) will commence in 2016/17.

(E) Mobility – Maintenance

Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2)

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 70 Traffic signs maintained. Number of Traffic OPEX 2500 Traffic signs Number of 625 Traffic signs Q2: There is an indication Depot to continue (Maintain route Signs Maintained maintained Traffic Signs maintained Target achieved that the theft of to monitor the markers, tourism signs, Maintained During quarter one street furniture is increase in theft of directional signs and (YTD 875) 1665 traffic signs increasing which traffic signs. regulatory/ warning were upgraded and resulted in replacing signs) maintained against more traffic signs a target of 625 than was anticipated

YTD: Target achieved During the period 3045 traffic signs were upgraded and maintained against a target of 875 71 Upgrade: - upgrading of Number of street OPEX 40 000 street Number of 10 000 street Q2: street names: kerbs names (kerbs) painted names (kerbs) street names names (kerbs) Target achieved with street names re- painted (kerbs) painted painted 19,405 street names painted: were painted on (YTD 14000) kerbs against a target of 10,000

YTD: Target achieved 21838 street names were painted on kerbs against a target of 14,000

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 72 Upgrading and Total Lane km of OPEX 1 500 Lane km of Lane km of 375 Lane km of Q2: maintaining faded Road faded road marking faded road marking faded road faded road Target achieved Markings upgraded upgraded marking marking upgraded 384.28 Lane Km of upgraded Faded Road (YTD 525) Markings were completed against a target of 375 Lane Km

YTD: Target achieved 638.45 Lane Km of Faded Road Markings were completed against a target of 525 Lane Km 73 Upgrading and Number of Street OPEX 3000 Street name Number of 750 Street name Q2: SCM to conclude the SCM to conclude maintaining street name (Poles (Poles mounted) Street name (Poles mounted) Target not achieved appointment of the the appointment of names (pole mounted mounted) upgraded upgraded (Poles upgraded During this quarter contractor for the the contractor for street names) mounted) 13 Street name provision of the provision of upgraded (YTD 1050) (Poles mounted) materials. materials. were upgraded against a target of 750

YTD: Target not achieved During the period 44 Street name (Poles mounted) were upgraded against a target of 1050

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(F) Mobility – Road Safety

Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 74 Investigations of Road % of investigations OPEX 100% of received % of received 100% of received Q2: Safety requests from completed as a result petitions petitions petitions during Target achieved petitions of petitions received investigated investigated the quarter 17 investigations investigated received during the 2nd quarter and all were investigated with reports. (100%)

YTD: Target was achieved 25 investigations received during the period and all were investigated with reports. (100%)

Programme 6: Internal Processes

Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2)

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 75 Asset Preservation Tons of Asphalt OPEX 120 000 Tons of Tons of Asphalt 25 000 Tons of Q2: Loss of production Discussions are produced Asphalt produced produced Asphalt produced Target was not was impacted by: underway to Production of asphalt in (Includes achieved. - Plant break down purchase new support of Includes external sales external sales) (YTD 60 000 tons) During the quarter a (129Hrs); plant/ Upgrade Rehabilitation and total of 20,552.77 - Shortage of plant; Renewal Roads tons of Asphalt was Bitumen (140 Hrs); Tenders (Bitumen) programmes produced against a - Staff matters i.e. needs to be target of 25,000 Union meetings, awarded on time to tons health screening, MD enable better - Internal = 20, Road Show (23 hrs); planning; 490.09 tons - Power Cut due to Regions to plan - External = 62.68 cable theft (32 hrs); better (timeous tons - Plant Calibration (24 placement of - Downtime = 152 hrs); Orders); hrs - No HMA demand The issue of JRA from regions (24 hrs) appointed YTD: contractors Target was not purchasing Asphalt achieved from the plant Year to date, a total needs to be fast of 37, 198.84 tons tracked . These of Asphalt was could have produced against a potentially added target of 60,000 another +/- 5000 tons Tons of Asphalt - Internal = 37, production. 035.21 tons - External = 163.3 tons - Downtime = 372 hrs

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 76 CS - Capital Equipment. % of Capital CAPEX 95% % Budget 50% Budget Q2 Equipment procured: Management will New Plant and Equipment (New Plant implementation of implementation implemented Target achieved - 22 x Rammers; engage Finance Equipment and Equipment) Capital Equipment R 4.5 Million of - 11 x Double Drum regarding funding JOHANNESBURG City Budget procured (New Plant and (YTD 55%) Operational CAPEX Vibrating Rollers for the Milling Wide Equipment) Budget spent as at the end - 5 x Vibrating Plate Machine. of the quarter. Single Direction Achieved 90% of - 21 x Reversible budget spend Vibrating Plates against a target of - 22 x Paving Breaker 50% Petrol

YTD Target achieved RSD reported a need R 4.5 Million of for a Milling Machine Operational CAPEX however budget spent as at end of allocation does not the period. allow for such Achieved 90% of procurement at this budget spend stage. against a target of 55% 77 IT - ERP Migration. New % of Initiatives CAPEX 100% % 40% Realization Q2 .• Project The project is Computer Software implemented as per implementation of implementation implementation of Target achieved Preparation- currently on hold, JOHANNESBURG City annual project plan – ERP migration of SAP project SAP project 21% of the completed pending approval of Wide SAP Migration implementation • Delta analysis – a project Change (YTD 58%) plan was achieved completed. request from the against a quarterly • Realization- EMT. target of 40% completed

YTD: 71 % of the implementation plan was achieved against a target of 58 %

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 78 EPWP Jobs created Number of Jobs OPEX 2200 Jobs created Number of Jobs 500 EPWP jobs Q2: Created (EPWP Job (EPWP) Created created The target was met. Creation) During the quarter (YTD 1146) 501 jobs were created against a target of 500.

YTD: The mid-term target was met. A total of 1207 jobs were created against a target of 1146.

Programme 7: Finance Management

Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2)

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 79 Financial Management % spend on JRA’s OPEX 100 % spend on % spend on 25% spend on R 235 798 Q2: The main reason for JRA to ensure that (OPEX Expenditure) operating budget JRA’s operating JRA’s operating JRA’s operating 000,00 Target was not under spending is operating against approved budget (within 5 % budget against budget achieved Contractors expenses expenditure is operating budget variance) approved Spend is R 222,111 (external usage of within the (within 5 % variance) operating (YTD 48%) m against a target of service providers) for operating budget budget (within R 235, 798 million Operations approved by 5% variance) this reflecting 23,54 Department Council, which at % against a target of this stage is the 25 % case and usually during the second YTD: half of the financial Target was not year the operating achieved expenditure Spend is R 427, 327 increases. m against a target of R 452,732 this reflecting 45 % against a target of 48 %

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 80 Financial Management % spend on JRA’s CAPEX 95% spend on JRA’s % spend on 25% spend on Q2: Note: (CAPEX Expenditure) capital budget against capital budget JRA’s capital JRA’s capital Target was not The YTD expenditure approved capital budget budget achieved R 444,916 million as budget During the quarter a at Mid-Year (YTD 40%) total of R 276,296 represents 31.43% of million was spent on the annual budget CAPEX projects allocation ( Mid-year against a quarterly target of 40% ) target of R 353,81 million. This represents 19,53 % expenditure against a quarterly target of 25%

YTD: Target not achieved During the period a total of R 444,916 million was spent on CAPEX projects against a YTD target of R 566,096 million.

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 81 Supply Management 75% of total N/a 75% of total % of total 75% of total Q2: (BBBEE Expenditure) procurement spend procurement spend procurement quarterly Target achieved on BBBEEE on BBBEE spend on procurement Total payments BBBEEE spend on BBBEE made in respect of BBBEE in the 2nd quarter amount to R 469 143 961,35 of which R 365 932 289,85 was spent on BBBEE suppliers (78% against a target of 75%)

YTD Target achieved Total payments made in respect of BBBEE in the period amount to R 966 619 563,72 of which R 773 295 650,98 was spent on BBBEE suppliers. (80% against a target of 75%).

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 82 Finance Management: - % of service providers N/a 95% compliance in % compliance 95% compliance in Q2: Due to pressure and Enforcement of Management of paid within 30 days. respect of payment in respect of respect of Target was not focus on the annual daily tracking of financial records of the of all service payment of all payment of all achieved audit, not all invoices accounts payable entity in accordance providers within 30 service service providers During the quarter, were paid within the and engagement of with any prescribed days providers within 30 days 94% of creditors 3 days as required. stakeholder to norms and standards, were paid within 30 Long lead times to address potential and are effective days resolve queries raised aging accounts will ,efficient and also resulted in ensure compliance transparent YTD: delays in payment with required Target was not processes. payment levels. achieved However, it is Review of payment Year to date, 93% of anticipated that the risks and controls creditors were paid 95% target will be will continue to be within 30 days achieved in Q3 and implemented. Q4. 83 Achievement of selected % Achievement of N/a 100% % Achievement 100% Targets partially profitability and liquidity selected profitability • Current ratio: 1:1 of selected • Current ratio: achieved ratios and liquidity ratios • Solvency ratio: profitability and 1:1 (Current; Solvency; 2.2:1 liquidity ratios • Solvency ratio: Current Ratio: Remuneration to • Remuneration to 2.2:1 1.41:1 against a Expenditure; Expenditure: below • Remuneration to target of 1:1 Maintenance to 48% Expenditure: (achieved) Expenditure.) • Maintenance to below 48% Expenditure: 5.3% • Maintenance to Solvency Ratio Expenditure: 5.3% 0,54:1 against target of 2,2:1(achieved)

Remuneration to Expenditure is 52,8% against a City target of below 35% (not achieved)

Maintenance to Expenditure 0,01% against a target of 5,3%

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Programme 8: Governance

Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 84 Audit findings- external Number of issues N/a 100% of all findings % resolution 0% Q2: Progress 2013/14 and internal audit raised by the AG raised by AG rate of AG The AGSA Audit has Audit: resolved expressed as resolved findings (2014- (AGSA audit in- been completed and a % of total number of 15 Audit) hand) the JRA will Out of a total of 36 issues raised by the commence findings raised, thirty AG in the addressing findings five (35) has been Management Letter raised during Q2 resolved by and Q3 management (97%) Achieved 0% against and one (1) was a target of 0% unresolved (3%). During the quarter, YTD: four (4) findings Target achieved were resolved. (refer above) The 2015/16 Audit was finalised end of November 2015 and 32 findings were raised.

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 85 Number of audit N/a 80% of all findings % resolution 80% of all findings Q2 As at 1st Oct 2015 findings raised by raised by Internal rate of Internal raised by Internal Target not achieved. ,there were one Internal Audit Audit resolved Audit Reports Audit resolved Of the one hundred hundred and thirty resolved on set findings (Audit within the and twenty four (134) findings implementation Plan) reported eight(128) findings open and six (6) new dates, as % of total timeframes due for resolution findings were raised number of findings by the JRA during Q2 resulting raised in the internal Management as at in a total number of audit reports. Q2 : one hundred and • Thirty-four (34) forty( 140) findings findings were to be resolved by JRA resolved within Q2 Management and ,translating to 27% included is twelve (34/128) against a (12) findings which target of 80 %. were not yet due for • Ninety-four(94) implementation by findings were JRA as at end of Q2 . unresolved Based on the above, translating to a total of 128 73%(94/128). findings were due for resolution by JRA YTD: Management as at Total number of Q2. Internal Audit findings raised year to date 168 , with 62 findings resolved and 106 unresolved year to date. This translates to an achievement of 36,9% against a target of 80%

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Kpi No Project Key Performance Annual Target Measurement Target Milestone Progress Comments Measures taken to Indicators unit (Q2) (Q2) (Reasons for non- improve conformance) performance Progress re Action Plans Milestones (where

Budget Stream Budget (Q2) performance is behind schedule) (Q2) 86 Detailed risk % Implementation of N/a 100% % 59% of activities Q2: The following management the Risk Management Implementation of Implementation identified Target was activities were not implementation plan Plan the Risk Annual of the Risk completed achieved. completed: (% Implementation of Plan Annual Plan During the second 17 activities (YTD 71%) quarter, 10 activities • Physical Risk identified) were planned for Assessment - The completion, 3 of Health & Safety which were department completed in the conducts first quarter. Of the assessments and its 7 remaining under consideration activities for the that the assessment second quarter, 5 be used to identify were achieved (5 physical security risks out of 7 resolved, rather than i.e. 71.4% against a duplicating efforts. target of 59%) • Assign assurance providers for the top YTD: identified risks – the The total KPI for the combined assurance financial year is 24 committee has been of which YTD we constituted is have achieved 10 currently working on which translates in achieving this KPI, the 41.67% of targets realistic target date is achieved against a end Q4. target of 71%.

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Annexure E Injuries on duty

SCHEDULE FOR INJURIES ON DUTY (OCTOBER – DECEMBER 2015)

DEPOT DATE OF THE Gender NO OF DAYS REMARKS Proposed corrective action to ACCIDENT Male Female LOST prevent reoccurrence by SHE Unit

JULY -2015 1. HAMBERG 22.07.2015 x Employee tripped and fell while walking Employee should avoid moving fast out of the office resulting in an injured left on uneven ground. ankle 2. AVALON 16.07.2015 x 4 Employee injured her right arm whilst Employee must always be cautious getting off a truck and take time to close the door of the truck when getting off. 3. RSD 23.06.2015 x 0 Employee twisted her ankle whilst Employee to be observant of the approaching the truck to get on. surroundings especially when the ground is uneven. 4. DOBSONVILLE 03.07.2015 x Employee injured left ankle and foot Employees to carry out a two minutes observation to identify any hazards before start an activity. Employees always to wear protective equipment provided to do the work. Supervisors to monitor the adherence to safety procedures and the wearing of provided safety equipment. 5. DOBSONVILLE 22.07.2015 x Employee was injured whilst offloading Employees to carry out a two tools from the truck and injured his back minutes observation to identify any and head hazards before start an activity and training on principle of manual handling . Safety procedures and

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handling of equipment to be reinforced during staff meetings and Tool-Box talks.

6. DOBSONVILLE 27.05.2015 x Employee injured her back Train employees on principle of manual handling. Safety procedures and handling of equipment to be reinforced during team meetings and Tool-Box talks.

7. DOBSONVILLE 27.05.2015 x Employee injured his right shoulder and Train employees on principle of his back manual handling. Safety procedures and handling of equipment to be reinforced during staff meetings and Tool-Box talks.

AUGUST-2015

8. HAMBERG 05.08.2015 x 3 Employee injured right finger Employee to wear hand gloves as protective equipment at all times. Supervisors to monitor the adherence to safety procedures and the wearing of provided safety equipment. 9. NORWOOD 26.08.2015 x Employee injured right middle finger by a Employee always to take time to truck door close the door of the truck when getting off SEPTEMBER-2015 10. RSD 17.07.2015 x Employee was hit on the forehead by a Train employees on principle of spoil being cleared by a colleague. manual handling . Effective communication between employees working on the same site and closer to each other must be reinforced during team meetings and Tool-Box Talks.. 11. DOBSONVILLE 27.08.2015 x Employee injured his chest Train employees on principle of manual handling. Safety

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procedures and handling of equipment to be reinforced during team meetings and Tool-Box talks 12. MOTORWAYS 23.08.2015 X Employee left hand and foot was injured Employee to wear hand gloves as by a hand rail when it slipped and hurt protective equipment at all times. him Supervisors to monitor the adherence to safety procedures and the wearing of provided safety equipment. 13. MOTORWAYS 09.08.2015 x 4 Employee leg was injured whilst removing Train employees on principle of guardrails manual handling. Safety procedures and handling of equipment to be reinforced during team meetings and Tool-Box talks 14. MOTORWAYS 12.09.2015 x Employee injured left finger while lifting a Employee to wear hand gloves as kerb Inlet (Ki) top protective equipment at all times. Supervisors to monitor the adherence to safety procedures and the wearing of provided safety equipment. 15. MOTORWAYS 12.09.2015 x Employee‟s left hand was injured by a Train employees on principle of guardrail while offloading from a truck manual handling. Safety procedures and handling of equipment to be reinforced during team meetings and Tool-Box talks 16. BENROSE 13.08.2015 x Employee‟s middle finger was injured Employee to wear hand gloves as whilst offloading a manhole cover protective equipment at all times and follow offloading SOP‟s as well as training on principle of manual handling. Supervisors to monitor the adherence to safety procedures and the wearing of provided safety equipment. 17. BENROSE 15.09.2015 x Employee became unconscious as a Employees to carry out a two result of an electric shock. minutes observation to identify any hazards before start an activity.

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18. DOBSONVILLE 15.09.2015 x 1 Employee‟s left hand and hip was injured The driver needs to be when he the back of the truck when driver reprimanded with regard to applied brakes suddenly speeding and negligent driving

QUARTER 2 : SCHEDULE FOR INJURIES ON DUTY ( OCT – DECEMBER 2015) OCTOBER 2015 HUMBERG 01.10.2015 X 0 Employee‟s left lower leg was injured Train employees on principle of when he slipped and fall whilst manual handling. Safety compacting tar with a worker machine. procedures and handling of equipment to be reinforced during team meetings and Tool-Box talks

ZANDFONTEIN 30.09.2015 X Employee‟s fingers were injured whilst Employee to wear hand gloves as moving a manhole cover protective equipment at all times and Train employees on principle of manual handling. Supervisors to monitor the adherence to safety procedures and the wearing of provided safety equipment.

TRAFFIC 01.10.2015 X Employee was hit by a vehicle at the The driver needs to be SIGNALS depot yard and injured left hip and right reprimanded with regard to leg speeding and negligent driving

AVALON 06.10.2015 X 1 Employee legs were injured in a car Speed is attributed to most accident accidents

Teach, promote and offer assertive driving lessons and incentivize employees driving within and below speed limit resulting in zero accidents

AVALON 07.10.2015 X 2 Employee was involved in a car accident Monitor and enforce speed limits. and got injured on the ribs and knee. Teach, promote and offer assertive driving lessons and incentivize employees driving within and below

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speed limit resulting in zero accidents

AVALON 06.10.0215 X Employee head and neck were injured in Teach, promote and offer assertive car accident driving lessons and incentivize employees driving within and below speed limit resulting in zero accidents

AVALON 07.10.2015 X 1 Employee was involved in a car accident Teach, promote and offer assertive and got injured on the shoulder driving lessons and incentivize employees driving within and below speed limit resulting in zero accidents

NOVEMBER 2015 BENROSE 18.11.2015 X Employee fell down from the truck and Employees to carry out a two injured his right leg minutes observation to identify any hazards before start an activity

ASPHALT PLANT 21.10.2015 X Employee inhaled bitumen and collapsed Employees to carry out a two as a result thereof minutes observation to identify any hazards before start an activity and wear protective respirator.

WATERVAL 28.10.2015 X Employee hurt his hand with a Bomag Train employees on principle of equipment manual handling. Safety procedures and handling of equipment to be reinforced during team meetings and Tool-Box talks

DOBSONVILLE 02.11.2015 X Employee got injured by KI on the right Train employees on principle of hand thumb manual handling. Wear and use issued protective gloves as well as SOP to be developed. Supervisors to monitor the adherence to safety procedures and the wearing of

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provided safety equipment.

DECEMBER 2015 DOBSONVILLE 02.12.2015 X Employee injured his left foot during a Teach, promote and offer assertive car accident driving lessons and incentivize employees driving within and below speed limit resulting in zero accidents.

DOBSONVILLE 02.12.2015 X Employee was involved in a car accident Teach, promote and offer assertive and he hit the back seat with right knee driving lessons and incentivize employees driving within and below speed limit resulting in zero accidents

DOBSONVILLE 02.12.2015 x Employee was involved in a car accident Teach, promote and offer assertive and he hurt his back. driving lessons and incentivize employees driving within and below speed limit resulting in zero accidents

STRYJDOM PARK 02.12.2015 X Employee was offloading spoil and slab Train employees on principle of fell on her right ankle. manual handling. Safety procedures and handling of equipment to be reinforced during team meetings and Tool-Box talks

STRYJDOM PARK 02.12.2015 X Employee was cutting the tree and a Employees to carry out a two piece of foreign object got into his eyes. minutes observation to identify any hazards before start an activity and wear protective goggles. Supervisors to monitor the adherence to safety procedures and the wearing of provided safety equipment.

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Annexure F Income Statement Detail Income Statement by Company

For the Quarter ending: December 2015 Description Current Quater Current Quarter Variance Variance YTD Actual YTD Budget Amount YTD Variance YTD Current Year Total Actual Amount Budget Amount Amount % Current Period Amt Variance % Approved Budget

REVENUE Rent Received 909 306 848 000 61 306 7,23% 1 818 612 1 696 000 122 612 7,23% 3 392 000 Gautrans Maintenance 1 477 000 2 464 500 -987 500 -40,07% 2 960 000 4 929 000 -1 969 000 -39,95% 9 858 000 COJ Maintenance 202 602 250 202 602 250 - 0,00% 405 204 500 405 204 500 - 0,00% 810 409 000 TOTAL REVENUE 204 988 556 205 914 750 -926 194 409 983 112 411 829 500 -1 846 388 823 659 000

DIRECT COSTS Material Cost 16 824 938 14 759 349 -2 065 589 -14,00% 31 516 366 29 518 698 -1 997 668 -6,77% 59 037 395 Jozi@Work - 1 192 500 1 192 500 100,00% 2 385 000 2 385 000 100,00% 4 770 000 Emergency (Ringfenced) - 4 097 761 4 097 761 100,00% 8 195 521 8 195 521 100,00% 16 391 042 Stock Adjustment 18 774 - -18 774 -100,00% -1 663 315 - 1 663 315 100,00% TOTAL DIRECT COST 16 843 712 20 049 610 3 205 898 29 853 051 40 099 219 10 246 168 80 198 437

GROSS PROFIT 188 144 844 185 865 141 2 279 703 380 130 061 371 730 282 8 399 780 743 460 563

OTHER INCOME Recoveries Telephone Calls -9 185 - -9 185 39 090 - 39 090 100,00% Asphalt Sales 75 703 1 060 000 -984 297 -92,86% 1 256 389 2 120 000 -863 611 -40,74% 4 240 000 Jobbings 9 288 810 6 095 000 3 193 810 52,40% 15 832 161 12 190 000 3 642 161 29,88% 24 380 000 Reinstatements 5 129 348 3 474 768 1 654 581 47,62% 9 162 061 6 949 535 2 212 526 31,84% 13 899 070 Developers Income 12 864 022 10 070 000 2 794 022 27,75% 22 360 012 20 140 000 2 220 012 11,02% 40 280 000 DCP Testing 6 783 - 6 783 100,00% 6 783 - 6 783 100,00% Insurance Claims 1 928 999 1 457 500 471 499 32,35% 7 344 216 2 915 000 4 429 216 151,95% 5 830 000 Interest from Intercompanies 5 755 773 - 5 755 773 100,00% 12 224 297 - 12 224 297 100,00% Other Sales 1 711 182 114 745 1 596 437 1391,29% 2 063 729 229 490 1 834 239 799,27% 458 980 Management Fees 3 550 881 7 195 983 -3 645 102 -50,65% 10 584 426 14 391 965 -3 807 539 -26,46% 28 783 930 Sundry Income - 415 255 -415 255 -100,00% 28 947 830 510 -801 563 -96,51% 1 661 020 Training Income - - - 0,00% - - 0,00% TOTAL OTHER INCOME 40 302 316 29 883 251 10 419 065 80 902 111 59 766 500 21 135 611 119 533 000

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Description Current Quater Current Quarter Variance Variance YTD Actual YTD Budget Amount YTD Variance YTD Current Year Total Actual Amount Budget Amount Amount % Current Period Amt Variance % Approved Budget

INDIRECT COSTS Advertising 208 458 1 109 560 901 102 81,21% 332 059 2 219 121 1 887 062 85,04% 4 438 241 Auditors Remuneration Fees 853 481 700 000 -153 481 -21,93% 2 080 480 1 400 000 -680 480 -48,61% 2 800 000 Bank Charges 20 566 37 500 16 934 45,16% 34 790 75 000 40 210 53,61% 150 000 Consulting Fees 13 190 252 14 436 804 1 246 552 8,63% 22 515 519 28 873 608 6 358 089 22,02% 57 747 216 Contractors JRA 5 928 120 17 457 882 11 529 762 66,04% 10 350 837 34 915 764 24 564 927 70,35% 69 831 526 Contractors Outsourced 675 506 1 457 800 782 294 53,66% 2 031 994 2 915 600 883 606 30,31% 5 831 200 Consumables 1 619 261 2 269 713 650 452 28,66% 2 358 948 4 539 425 2 180 477 48,03% 9 078 850 Depreciation 8 782 087 7 750 000 -1 032 087 -13,32% 17 097 995 15 500 000 -1 597 995 -10,31% 31 000 000 Directors Emoluments 400 455 325 000 -75 455 -23,22% 928 388 650 000 -278 388 -42,83% 1 300 000 Entertainment 58 565 234 650 176 085 75,04% 161 798 469 300 307 502 65,52% 938 600 Corporate Promotions 514 039 824 449 310 410 37,65% 1 538 297 1 648 897 110 600 6,71% 3 297 794 Insurance 2 805 750 2 805 750 - 0,00% 5 611 500 5 611 500 - 0,00% 11 223 000 Intercompany Charges 550 805 1 719 250 1 168 445 67,96% 1 182 207 3 438 500 2 256 293 65,62% 6 877 000 Leased Contract Services 27 036 751 28 667 191 1 630 440 5,69% 63 048 168 57 334 383 -5 713 785 -9,97% 114 668 765 Offices(Parking) 117 457 394 850 277 393 70,25% 544 261 789 700 245 439 31,08% 1 579 400 Office Equipment 105 200 265 000 159 800 60,30% 182 800 530 000 347 200 65,51% 1 060 000 Legal Expenses 193 156 750 000 556 844 74,25% 261 156 1 500 000 1 238 844 82,59% 3 000 000 Licenses 350 808 1 083 375 732 567 67,62% 418 304 2 166 750 1 748 446 80,69% 4 333 500 Magazines 26 214 253 841 227 627 89,67% 67 145 507 682 440 537 86,77% 1 015 364 Municipal Services Charges 7 619 758 6 428 755 -1 191 003 -18,53% 14 374 847 12 857 511 -1 517 336 -11,80% 25 715 021 Stationary 612 485 772 030 159 545 20,67% 1 182 856 1 544 060 361 204 23,39% 3 088 119 Printing 681 595 1 068 844 387 249 36,23% 978 856 2 137 687 1 158 831 54,21% 4 275 374 Repairs & Maintenance 2 504 745 5 792 962 3 288 217 56,76% 4 039 942 11 585 923 7 545 981 65,13% 23 171 846 Strategic Planning 423 751 378 500 -45 251 -11,96% 423 751 757 000 333 249 44,02% 1 514 000 Employee & Related Costs 120 750 759 107 952 250 -12 798 509 -11,86% 225 719 117 215 904 500 -9 814 617 -4,55% 431 809 000 Employee Wellness 47 325 631 510 584 185 92,51% 401 185 1 263 020 861 835 68,24% 2 526 039 Security 2 489 901 4 277 644 1 787 743 41,79% 8 525 384 8 555 288 29 904 0,35% 17 110 575 Software Expenses - - - 0,00% 3 038 - -3 038 -100,00%

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Description Current Quater Current Quarter Variance Variance YTD Actual YTD Budget Amount YTD Variance YTD Current Year Total Actual Amount Budget Amount Amount % Current Period Amt Variance % Approved Budget

Social Responsibility - 62 700 62 700 100,00% 125 400 125 400 100,00% 250 800 Telephone & Fax 1 321 962 1 015 421 -306 541 -30,19% 2 457 092 2 030 842 -426 250 -20,99% 4 061 684 Training 2 377 984 2 297 579 -80 405 -3,50% 3 434 273 4 595 159 1 160 886 25,26% 9 190 317 Travel Expenses 110 582 412 500 301 918 73,19% 149 796 825 000 675 204 81,84% 1 650 000 Data Services 2 785 710 2 065 083 -720 627 -34,90% 4 933 858 4 130 166 -803 692 -19,46% 8 260 332 Realised Gains/Losses 103 558 50 000 -53 558 -107,12% 103 558 100 000 -3 558 -3,56% 200 000 TOTAL INDIRECT COST 205 267 046 215 748 393 10 481 347 397 474 199 431 496 786 34 022 583 862 993 563

OPERATING PROFIT 23 180 114 - 23 180 114 63 557 973 - 63 557 973 -

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Annexure G Notes to Financial Notes to Financial Statement Statement

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD DECEMBER 2015

2015 2015 December June R'000 R'000

1. Property, plant and equipment Accumulated Carrying Cost Depreciation Value R'000 R'000 R'000

Buildings 63 914 12 223 51 691 51 530 Land 17 294 - 17 294 17 293 IT Equipment 31 086 13 493 17 593 8 544 Furniture and Fittings 15 646 9 182 6 464 6 578 Office Equipment 7 966 3 626 4 340 4 834 Motor Vehicles 13 594 13 594 15 305 Tools and Loose Gear 525 483 42 51 Assets (WIP) 17 907 17 907 1 592 Plant and Machinery 113 389 69 217 44 172 53 845 Total 281 321 108 224 173 097 159 572

2. Intangible Assets Accumulated Carrying Cost Depreciation Value R'000 R'000 R'000 Computer Software 14 308 12 637 1 670 17 294 Total 14 308 12 637 1 670 17 294

3. Employee benefit investment

Post-retirement Gratuity 32 404 32 884 Post-retirement Housing Subsidy - - Post-retirement Medical Aid 25 621 25 620 58 025 58 504

4. Trade and other receivables Trade Debtors 14 394 31 120 Related party Receivables 339 316 336 651 Prepayments 69 270 43 440 Provision for bad debts (4 948) 4 947 Electricity Deposit 150 300 STD Bank Trust Account' - CoJ - Capital expenditure 25 749 26 295 443 931 442 753

172

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED DECEMBER 2015 2015 2015 December June R'000 R'000 5. Inventories Raw Materials 47 216 18 772 Consumables - 3 784 Disclosure of Consumables 3 784 Impairments (2 664) (2 664) 48 336 19 892

6. Bank Balances and Cash Petty Cash 2 2 JPC Portfolio (Bank) - Inter-company account 373 029 425 737 Absa Bank Accounts - Standard Bank Accounts Developers contribution 373 031 425 739

7. Contribution from Owner Share Capital 1 1 Shareholders Loan 197 224 123 014 197 225 123 015

8. Employee Benefit Obligation Gratuity Liabilities 34 817 34 817 Post-retirement medical aid 8 115 8 115 Post-retirement housing subsidy 2 955 2 955 45 888 45 887

9. Finance Lease Obligation Current lease portion 10 520 10 519 10 520 10 519

10. Trade and other payables Trade Payables 328 882 442 456 Capital Accruals - Gratuity Provision - - Leave Pay Provision 25 030 25 345 Retention 91 760 66 103 Related Party Creditors 26 370 25 979 Payroll Accruals 3 803 4 120 Fair Value of Creditors (196) (195) Prepayments 89 286 100 444 Bonus Provision: 13th Cheque 3 072 9 767 568 007 674 019

11. Finance Lease Obligation Long term portion of finance lease 11 899 15 986 11 899 15 986

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NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED DECEMBER 2015

2015 2015 December June R'000 R'000

12. Provision Legal Claim Provision 29 100 29 350 Bonus Provision: Performance 5 083 10 130 34 183 39 480

13. Cash Utilised in Operations Surplus / (Deficit) before taxation 63 558 120 434 Adjusted for: Depreciation and amortisation 17 098 23 805 Interest Earned 1 859 Gain on sales of property, plant and equipment - 25 Finance Costs - Decrease in loan to shareholder - Other non cash movements 289 Movement in provisions 31 450 Movement in shareholders loan 33 703 Assets purchased through finance lease 26 298 Movement in retirement benefit obligation 480 5 254 Changes in Working Capital Inventories (28 444) (8 660) Trade and other receivables (1 178) (268 413) Trade and other payables (106 013) 250 346 (54 498) 216 391

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Annexure H Balance Sheet

Balance Sheet : December 2015 Statement of Financial Position as at December 2015 2015 2015 December June R'000 R'000 Assets Notes

Non Current assets 232 792 235 374 Property plant and equipment 1 173 097 159 575 Intangible Assets 2 1 670 17 294 Employee benefits investment 3 58 025 58 505

Current assets 865 298 888 385 Inventories 5 48 336 19 892 Trade and other receivables 4 443 931 442 753 Cash and Cash Equivalents 6 373 031 425 740

Total Assets 1 098 090 1 123 759

Equity & Liability

Equity 427 594 348 247 Contribution from owner 7 197 226 181 445 Accumulated Surplus 230 368 166 802

Non Current Liabilities 57 786 61 874 Employee benefit obligations 8 45 887 45 888 Finance lease obligations 11 11 899 15 986

Current Liabilities 612 710 713 638 Trade and other payables 10 568 007 674 020 Finance lease obligations 9 10 520 10 519 Provisions 12 34 183 29 099

Total Liabilities 1 098 090 1 123 759

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Annexure I Cash Flow

Cash Flow

Cash Flow Statement for the period ended December 2015 2015 2015 December June R'000 R'000 Note Cash Flows from Operating Activities

Cash used in operations 13 (54 498) 377 653 Interest income - 20 649 Finance Costs - Net Cash from operating activties (54 498) 398 302

Cash flows from investing activities

Purchase of property,plant and equipment (14 994) (58 428) Proceeds from sale of property, plant and equipment - - Increase in Developers contribution - - Decrease in Loan to shareholder 5 084 - Net Cash from investing activities (9 911) (58 428)

Cash Flow From Financing Activities

Decrease in shareholder's loan 15 780 Repayment of finance lease obligations-non current (4 086) (10 739) Net Cash From financing activities 11 694 (10 739)

Total Cash Movement for the period (52 715) 329 135 Cash at the begining of the period 425 740 96 606

Total cash at the end of the period 373 025 425 741

176

Annexure J Fraud Allegations Register 2015/16

N Description Date Affect Sourc Category Action Plan Investigating Date issued to Status Investigation Financial Loss Progress o. reported ed e Team investigation/ Cost ‘R to IA. Unit/( ‘R s)

1 Allegation of 15-Jul-15 CS Whistl Contract Referred to Nexus 20-Aug-15 Open Unknown Unknown The investigation is still in Contract e- procurement the COG Forensics progress since September procurement blower irregularities Investigating 2015 and almost at final irregularities Unit stages with interviews being held with relevant people by the service provider. 2 Allegation of 20-Jul-15 CS Whistl Contract Referred to Nexus 20-Aug-15 Open Unknown Unknown Same as above Contract e- procurement the COG Forensics procurement blower irregularities Investigating irregularities Unit 3 Allegation of 28-Aug-15 CS Whistl Payroll Fraud Referred to None N/A Open Unknown Unknown The matter was referred to payroll Fraud e- the COG the City for assistance with blower Investigating implementation. No progress Unit has been made to date. Process to procure the services of an external service provider in progress with the specification being finalised by the Chief Audit Executive. 4 Allegation of 01-Aug-15 RO Whistl Illegal Road Referred to None N/A Open Unknown Unknown The matter was referred to Illegal digging e- Marking the COG the City for assistance with of the road blower Investigating implementation. No progress Unit has been made to date.

177

N Description Date Affect Sourc Category Action Plan Investigating Date issued to Status Investigation Financial Loss Progress o. reported ed e Team investigation/ Cost ‘R to IA. Unit/( ‘R s)

5 General 05-Nov-15 CS Whistl Recruitment The Unknown N/A Open Unknown Unknown Appointment letter of the Workers e- Irregularities investigation investigator from one of the Recruitment blower appointed COJ entities has been signed Irregularities from other by the Managing Director and MOE the investigation to commence in the 3rd quarter. 6 Alleged 01-Dec-15 ID Whistl Contract Preliminary None N/A Open Unknown Unknown Preliminary review by IA in Specification e- procurement review by IA progress to gather information Fraud and blower irregularities in process on the allegation sole provider product requirement. 7 Recruitment 23-Dec-15 CS Whistl Recruitment Preliminary Unknown N/A Open Unknown Unknown The matter has been referred Irregularities e- Irregularities review by IA to the Ethics Officer (Co. for Office blower in process Secretary) for investigation. Manager TOTAL - - AMOUNTS

______

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Annexure K

Amounts owing by Government Entities and others

As at December 2015, an amount of R 339,316 is owing to JRA by Government Entities. Amounts owed by other is included in tha table below

Trade and other receivables Amount (R) Trade Debtors 14 394 Related party Receivables 339 316 Prepayments 69 270 Provision for bad debts (4 948) Electricity Deposit 150 STD Bank Trust Account' - CoJ - Capital expenditure 25 749 443 931

179

Contracts awarded (Q2)

CONTRACT CONTRACT TYPE OF CONTRACT DESCRIPTION BU SERVICE PROVIDER (S) START DATE END DATE AMOUNT (VAT NUMBER CONTRACT INCLUSIVE)

October 2015 115/2015 Development Of The Case/Cost Benefit Asphalt Makhosi Engineers & 08/10/2015 Project Based R281 664.00 Fixed Term Analysis For The Procurement Of The Project Managers New JRA Asphalt Plant 085/2015 Appointment For Audit Services To Internal Ramuedzi Advisory 12/10/2015 Project Based R250 000.00 Fixed Term Conduct An Audit Of The Fraud Audit Services cc Management Controls Of The Johannesburg Roads Agency (SOC) LTD 109/2015 Emergency Appointment Of A Contractor ID WA Road Construction cc 12/10/2015 Project Based R2 407 458.00 Fixed Term For The Repairs of Stormwater Management At David Street Olivesdale 027/2015 Professional Services For Regional ID SRK Consulting (Pty) Ltd 23/10/2015 21/10/2016 Rates Fixed Term Stormwater Master Planning In Various Areas Throughout The City Of Johannesburg For A Period Of 12 Months 056/2015 Complete Streets Construction Work In ID Shonisani Rambau 23/10/2015 Project Based R5 267 034.98 Fixed Term Orange Farm Construction ( Pty) Ltd 168/2014 Professional Services Consultant For ID PH Bagale (Pty) Ltd 23/10/2015 23/10/2018 R3 372 182.57 Fixed Term The Upgrading Of Gravel Roads To Surface Standards Inclusive Of Associated Stormwater In Thulani And Doornkop For Three Financial Years 007/2015 Supply, Delivery And Off- Loading & FM NAP Designs (Pty) Ltd 26/10/2015 26/10/2017 Rates Fixed Term Assembly Of Office Furniture To The JRA For A Period Of Two Years, As When Required 007/2015 Supply, Delivery And Off- Loading & FM Paulser Stationers and 26/10/2015 26/10/2017 Rates Fixed Term Assembly Of Office Furniture To The Office Supplies JRA For A Period Of Two Years, As When Required

180

CONTRACT CONTRACT TYPE OF CONTRACT DESCRIPTION BU SERVICE PROVIDER (S) START DATE END DATE AMOUNT (VAT NUMBER CONTRACT INCLUSIVE) 006/2015 Appointment of Panel of Service Marketing Maxx Corporate 23/10/2015 22/10/2017 Rates Fixed Term Providers for the Provision of Public Communications Relations and Communications Services to The Johannesburg Road Agency (JRA) for the period of two years as and when required Blueprint Group (Pty) ltd

Garona Communications & Projects cc 015/2015 Supply Delivery and off-loading of traffic Mobility Automotor Traffic Signal 13/10/2015 02/04/2016 Rates Fixed term signal equipment for until 2016 “As and Freight nVolve Solution Pty Ltd When” Unity Cables cc Syntell Pty Ltd Kelvata Trading 104 KT Industrial 084/2015 Appointment for a Consultants to Internal SIzwe Ntaluba Gobodo 09/10/2015 Project Based R 261 768.32 Fixed Term Conduct a Forensic Investigation into Audit Alleged Misappropriation of JRA Assets ( Asphalt, Hired Truck and Company time) for Personal use and gain by JRA Employees at Region E A566 Panel of service providers for capability Regional Bitupquip Construction & 26/10/2015 Project Based R 4 042 581.59 Fixed Term support agent (csa) basket 1 and basket Ops Palconi Project 2 services to micro, small and very small Jolope Trading cc R 4 512 517.61 concerns executing work packages in Gochi Trading cc R 2 492 011.31 specific sectors under the jozi@work programme (wave1) at Region c November 2015 046/2015 Reconstruction and Rehabilitation of ID Actophambili Roads Pty 02/11/2015 01/11/2017 R16 250 469.04 Fixed term roads in Region f of the city of Ltd Johannesburg for two financial years

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CONTRACT CONTRACT TYPE OF CONTRACT DESCRIPTION BU SERVICE PROVIDER (S) START DATE END DATE AMOUNT (VAT NUMBER CONTRACT INCLUSIVE) 151/2015 Provision of Communication Roll Out Marketing Garona Communication 25/11/2015 Project Based R13 127 411.82 Fixed term Plan to Promote The JRA Flagship and projects Project 143/2015 Provision of Media Monitoring to the Marketing Garona Communication 25/11/2015 24/11/2017 R 640 293.60 Fixed term Johannesburg Roads Agency for the and projects Period of Two Years 144/2015 Provision of Email Banner Marketing Marketing Garona Communication 25/11/2015 24/11/2017 R 817 650.00 Fixed term Design and Implementation to the and projects Johannesburg Road Agency- 600 Email Users for the period of two Years

December 2015 026/2015 Civil Engineering Consultants Services ID SRK Consulting 08/12/2015 Project Based R 4 841 000.00 Fixed Term for the Management/Control of Engineers Braamfontein Spruit Hydraulics, Johannesburg 051/2015 Complete Streets Construction Work in ID WA Road Construction 08/12/2015 Project Based R14 702 8098.00 Fixed term Ivory Park 077/2015 Appointment of a Contractor to Provide ID WA Road Construction 23/12/2015 Project Based R5 048 631.00 Fixed term Ebankment Protection-Wyoming Avenue, Berario 091/2015 Appointment of a Contractor for the ID Nyoni Projects (Pty) Ltd 23/12/2015 Project based R3 755 039.40 Fixed term Emergency Stormwater at 21 Hans Schoeman and the Shopping Centre at Malanshof, Randburg 050/2015 Professional service: for Visual ID BMK Engineering 23/12/2015 Project R21 950 510.00 Fixed term Conditions assessment of all the roads in Consultants Based the city of Johannesburg and formulation of visual condition index and Maintenance Programmes for JRA 058/2015 Appointment of consultant for ID Malani Padayachee & 23/12/2015 22/12/2018 R3 890 361.75 Fixed term professional services for the upgrading of Associates (Pty) Ltd gravel roads to surface standards

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CONTRACT CONTRACT TYPE OF CONTRACT DESCRIPTION BU SERVICE PROVIDER (S) START DATE END DATE AMOUNT (VAT NUMBER CONTRACT INCLUSIVE) inclusive of associated stormwater in Poortjie in region g of the city of Johannesburg for three (3) financial years 170/2014 Supply, Delivery and Installation of IT IT Datacentrix 23/12/2015 Project Based R7 066 393.50 Fixed term Hardware and Services 081/2015 Professional services: appointment of ID Lesae Trading cc 23/20/2015 22/12/2018 R9 706 000.00 Fixed term consultants for bridge joints inspection and replacement for a period of three years

048/2015 Appointment for the contractor of ID Lettam Building Civils cc 05/11/2015 Project Based R 5 235 307 .45 Fixed term Remedial activities stormwater Erosion Protection Measures Along Braamfonten Spruit at Carlow Road Melville 042/2015 Constriction of Le Roux Avenue from ID Bophelong Construction 24/12/2015 Project Based R 37 329 249.17 Fixed term Single Carriageway to Dual Carriageway (Pty) Ltd from Pretoria Main (R101) to old Pretoria main Road 038/2015 Reconstruction and Rehabilitation of ID Actophambili Roads (Pty) 24/12/2015 Project Based R 25 701 453.10 Fixed term Roads in Region A Ltd 045/2015 Rehabilitation and reconstruction of ID Tranacon Constraction cc 24/12/2015 Project Based R 16 393 784.80 Fixed term streets in COJ Region E 047/2014 Rehabilitation and reconstruction of ID Boitshoko Road surfacing 24/12/2015 Project Based R 18 301 068.75 Fixed term roads in COJ Region C and Civil works cc 167/2014 Expression of Interest: Panel of Finance Rakoma and Associates 24/12/2015 Project Based Rates Fixed term resources to assist with compilation and Ditsebi Solution evaluation of bid documents for civil engineering construction , commodities Tiisang Risk and and other related services on as and Assurance Consulting when required Phunga Consulting Engineers Kago Solution Advisory Sydwalt (Pty) Ltd

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Annexure M

Claims against JRA: 2nd Quarter 2015-16

Date From Reason Amount Progress Comments Nature of Claim 01-Oct-15 Mkansi Nohlanhla Nomsa Manhole R1305 000.00 does not fall within our jurisdiction Summons 05-Oct-15 David Nathan Fienberg Concrete slab R2551.95 Report send to AON, claimant informed 9-Oct-15 Active Normal 05-Oct-15 Phephelani Angeline Maeko Pothole R15 954.57 Report send to AON, claimant informed 21-Oct-15 Active Normal 05-Oct-15 Charlotte Groenewald Pothole R24 412.73 Report outstanding from the Depot Active Letter of Demand 05-Oct-15 Tryphina Molotsi Open manhole R390 000.00 Report outstanding from the Depot Active Letter of Demand 10-Oct-15 Ntokozo Nkosi Pothole R1090.30 Report send to Depot, claimant informed 07-Dec-15 Active Normal 12-Oct-15 Joyce Mkhuhlane Open manhole not mentioned Report send to AON, claimant informed 20 Oct-15 Active Normal 12-Oct-15 Johannes Bernadus Breuker damage to telecomminications R12 080.04 Report outstanding from the Depot Active Normal 12-Oct-15 Phillip John Cooper Pothole R11 495.40 Report send to AON, claimant informed 19-Oct-15 Active Normal 12-Oct-15 Carlos Manuel Dopasso Pothole R4391.00 Report send to AON, claimant informed 15-Oct-15 Active Normal 13-Oct-15 Surendra lasai Maharaj Trench R5 085.10 Report send to AON, claimant informed 30-Oct-15 Active Normal 13-Oct-15 Anthony John Cohen Open manhole R24 000.25 Report send to AON, claimant informed 26-Oct-15 Active Normal 15-Oct-15 Dhiresh Surajpal Pothole R8 828.81 Report send to AON, claimant informed 22-Oct-15 Active Letter of Demand 20-Oct-15 Sugeeth maharaj Open manhole R19 735.71 Report send to AON, claimant informed 22-Oct-15 Active Letter of Demand 20-Oct-15 Justine Hodenberg damages to telecomunications R1 305.30 Report outstanding from the Depot Active Normal 20-Oct-15 Mr & Mrs Gross Storm water drain R533 764.28 Report outstanding from the Depot Active Summons 20-Oct-15 Michael barth Trench R4 879.10 Report send to AON, claimant informed 16-Nov-15 Active Normal 21-Oct-15 Leornard Samuel Kline Open manhole R3 538.00 Report send to AON, claimant informed 30-Oct-15 Active Normal 21-Oct-15 Amanda nel Pothole R19 486.35 Report outstanding from the Depot Active Letter of Demand 22-Oct-15 faith Sibanda Open manhole not mentioned Report send to AON, claimant informed 30-Oct-15 Active Normal 22-Oct-15 Cylondia Naidoo Pothole R1250.00 Report send to AON, claimant informed 10-Dec-15 Active Normal 22-Oct-15 Oscar Gutierrez Pothole R23 074.70 Report outstanding from the Depot Active Letter of Demand 23-Oct-15 Piccanin Lucas Morajane Stormwater Drain R350 000.00 Report outstanding from the Depot Active Letter of Demand 23-Oct-15 Tryphina Molotsi Stormwater Drain R350 000.00 Report outstanding from the Depot Active Letter of Demand 26-Oct-15 Rhulani Ndlovu Pothole R3 805.01 Report outstanding from the Depot Active Normal 26-Oct-15 Mzwandile Thulani Nyoka Pothole R3 900.00 Report outstanding from the Depot Active Normal 26-Oct-15 Maseko Tsio Cedrik Open manhole R400 000.00 Report send to AON, claimant informed on 13 Nov-15 Active Letter of Demand 27-Oct-15 Richard & Jullie Ann Van MoerkerkenFloods R40 000.00 Report outstanding from the Depot Active Letter of Demand 28-Oct-15 Matlhare Itumeleng Archibald Open manhole R500 000.00 Report outstanding from the Depot Active Letter of Demand 28-Oct-15 Rachere Reginah Dimakatso Open Manhole R400 000.00 Report send to AON, claimant informed 11-Nov-15 Active Letter of Demand 30-Oct-15 Gobadwane sizwe Open Manhole R400 000.00 Report outstanding from the Depot Active Summons 30-Oct-15 Fredda Msezane Open Manhole R400 000.00 Report send to AON, claimant informed 11-Nov-15 Active Summons 30-Oct-15 Dianne carlisle pothole R12 341.97 Report outstanding from the Depot Active Summons 30-Oct-15 CG Boer pothole R3 245.22 Report outstanding from the Depot Active Letter of Demand 30-Sep-15 Nicaela Rajah Excavation R3 214.00 Report send to AON, claimant informed 04-Nov-15 Active Letter of Demand 30-Sep-15 Siduduzo Mnyengeza pothole not mentioned on LOD Report outstanding from the Depot Active Letter of Demand

184

02-Nov-15 Bengindawo Melusi Pothole not mentioned on LOD Report outstanding from the Depot Active Letter of Demand 02-Nov-15 Kholeka Mnyatheli Pothole not mentioned on LOD Report outstanding from the Depot Active Letter of Demand 02-Nov-15 Clement Rapholo Open Manhole R500 000.00 Report send to AON, claimant informed 13 Nov-15 Active Letter of Demand 02-Nov-15 Lerato Ndlovu Open Drainage hole R700 000.00 Report send to AON, claimant informed 13-Nov-15 Active Letter of Demand 02-Nov-15 Xoliswa Kakana Pothole R31 001.62 Report send to AON, claimant informed 18-Nov-15 Active Letter of Demand 03-Nov-15 Merle Brandon Pothole R1 060.01 Report send to AON, Claimant informed 13-Nov-15 Active Normal 03-Nov-15 Colletar Maganedesa Open Manhole R500 000.00 Report send to AON, claimant informed Active Letter of Demand 04-Nov Ntina Christina Mangel Open Manhole R500 000.00 Report outstanding from the Depot Active Letter of Demand 04-Nov-15 Molefi Solomon Hlohlolo accident R49 957.97 Report outstanding from the Depot Active Letter of Demand 04-Nov-15 Themba Tshoka Open Manhole R500 000.00 Report outstanding from the Depot Active Letter of Demand 04-Nov-15 Zondo Olga Open Manhole R400 000.00 Report send to AON, claimant informed 11-Nov-15 Active Letter of Demand 04-Nov-15 Tanki Daniel Makgwana Open Manhole R400 000.00 Report outstanding from the Depot Active Summons 04-Nov-15 Edwin Mukwebo Open Manhole R250 000.00 Report send to AON, claimant informed 11-Nov-15 Active Summons 03-Nov-15 Alex Assegaai Illegal speed Humps R12 784.90 Report outstanding from the Depot Active Normal 04-Nov-15 Simiso Xulu Open Manhole R500 000.00 Report outstanding from the Depot Active Letter of Demand 06-Nov-15 Mr J De Wet kritzinger Pothole R40 958.30 Report outstanding from the Depot Active Letter of Demand 09-Nov-15 Christopher Eben Vounnou Pothole R1 014.00 Report outstanding from the Depot Active Normal 10-Nov-15 Shay-chai Markov Pothole R4 760.00 Report outstanding from the Depot Active Normal 10-Nov-15 Conan Jeremy Johnson Pothole R1 610.05 Report outstanding from the Depot Active Normal 10-Nov-15 Mathume Thabang Radingoana Open Manhole R1 425.00 Report outstanding from the Depot Active Normal 11-Nov-15 Obed Jacobus Rathebe Open Manhole R1 500 000.00 Report outstanding from the Depot Active Letter of Demand 13-Nov-15 Liani Glinister Collision R7 100 000.00 Report send to AON, claimant informed 11-Dec-15 Active Letter of Demand 13-Nov-15 Stephen John Vivian Pothole R3 048.35 Report outstanding from the Depot Active Normal 16-Nov-15 Zandile Xulu Pothole R450 000.00 Report outstanding from the Depot Active Letter of Demand 16-Nov-15 Simelane Khulekane Robert Open Manhole R765 000.00 Report send to AON, claimant informed 07-Jan-16 Active Summons 18-Nov-15 Bodiroa Mapule Mabel Open Manhole R500 000.00 Report outstanding from the Depot Active Letter of Demand 18-Nov-15 Sabelo Nkalankala Open Manhole R700 000.00 Report outstanding from the Depot Active Letter of Demand 18-Nov-15 Moliehi Vernice Khasu Open Manhole R500 000.00 Report outstanding from the Depot Active Letter of Demand 18-Nov-15 Nokuzola Maureen Guzana Pothole R3 559.30 Report outstanding from the Depot Active Normal 26-Nov-15 Kent John Lawrence Pothole R2 014.35 Report outstanding from the Depot Active Normal 26-Nov-15 Christina Naidoo(Vielason Naidoo)Pothole R11 434.43 Report outstanding from the Depot Active Letter of Demand 26-Nov-15 Rosemary Jane Minter Wiltshire(ByronPothole George Wiltshere) R26 183.38 Report outstanding from the Depot Active Letter of Demand 26-Nov-15 Jacobus Swanepoel Pothole R32 388.43 does not fall within our jurisdiction Letter of Demand 26-Nov-15 Nada Nieuwoudt Pothole R20 371.80 Report outstanding from the Depot Active Letter of Demand 27-Nov-15 Reuben Lucas Podile Pothole R2 982.46 Report send to AON, claimant informed 10-Dec-15 Active Normal 27-Nov-15 Karmini Barlwanth Pothole R 2123.55 Report send to AON, claimant informed 01-Dec-15-GautransActive Normal 01-Dec-15 Mfanafuthi Shange Pothole R20 333.52 Report outstanding from the Depot Active Letter of Demand 03-Dec-15 Tebogo Collin Makoe Openmanhole R400 000.00 Report outstanding from the Depot Active Letter of Demand

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03-Dec-12 William Ndhlovu ( Samukelisiwe PrincessOpenmanhole Ndhlovu) R500 000.00 Report send to AON, claimant informed 09-Dec-15 Active Letter of Demand 03-Dec-15 Nonhlanhla Dladla Openmanhole R350 000.00 Report outstanding from the Depot Active Letter of Demand 07-Dec-15 Polixeni Swanepoel Pothole R4 800.00 Report outstanding from the Depot Active Normal 07-Dec-15 Soritha Pietersen Openmanhole R600 000.00 Report outstanding from the Depot Active Letter of Demand 08-Dec-15 Winnie Ntuli Openmanhole R550 000.00 Report outstanding from the Depot Active Letter of Demand 08-Dec-15 Mandisa Mdluli Openmanhole R400 000.00 Report outstanding from the Depot Active Summons 08-Dec-15 Timothy Mokoena Rubble R4 649.99 Report send to AON, claimant informed 10-Dec-15 Active Normal 08-Dec-15 Tinyiko Sinhle Maluleke Openmanhole R100 000.00 Report send to AON, claimant informed 09-Dec-15 Active Letter of Demand 08-Dec-15 Dorah Mohapi Openmanhole R600 000.00 Report outstanding from the Depot Active Letter of Demand 08-Dec-15 Lesego Ncapdedi Openmanhole R350 000.00 Report send to AON, claimant informed 09-Dec-15 Active Letter of Demand 08-Dec-15 Nomsa Alina Mabuza Open Trench R600 000.00 Report send to AON, claimant informed 09-Dec-15 Active Letter of Demand 09-Dec-15 Ryan Theunissen Openmanhole R6532.58 Report outstanding from the Depot Active Normal 09-Dec-15 Mark Kassner Pothole R3 088.00 Report outstanding from the Depot Active Normal 09-Dec-15 Visagan Naidoo Pothole R5 477.45 Report outstanding from the Depot Active Normal 09-Dec-15 Kelebogile Molefe Openmanhole R350 000.00 Report outstanding from the Depot Active Letter of Demand 10-Dec-15 Tobokani Sebele Openmanhole R8 650.00 Report outstanding from the Depot Active Normal 10-Dec-15 Gregory Nainaar Pothole R1 615.00 Report outstanding from the Depot Active Normal 11-Dec-15 Xolani Nombewu Pothole R56 605.78 Report outstanding from the Depot Active Summons 11-Dec-15 Ben Cillier Pothole R83 307.99 Report outstanding from the Depot Active Letter of Demand 11-Dec-15 Nigel Dennis Greef pice of metal not mentioned Report outstanding from the Depot Active Normal 11-Dec-15 Kelebogile Molefe Openmanhole R350 000.00 Duplicate of JRA/17/12/2015 Summons 11-Dec-15 Natalie Cochran Pothole R4 974.96 Report outstanding from the Depot Active Normal 14-Dec-15 Tebogo Matlebyane Bricks R6 635.00 Report outstanding from the Depot Active Normal 14-Dec-15 Jiri Miovsky Pothole R615.00 Gautrans Normal 21-Dec-15 Marilda Strydom Pothole R27 971.17 Report outstanding from the Depot Letter of Demand 21-Dec-15 Tano Precious Mbokazi Open manhole R320 000.00 Report send to AON, Claimant informed 08-Jan-16 Active Letter of Demand 21-Dec-15 BL Mountjoy Pothole R15 097.75 Report outstanding from the Depot Active Summons 21-Dec-15 Gladys Busisiwe Msibi Open manhole R400 000.00 Report outstanding from the Depot Active Letter of Demand 21-Dec-15 Shadrack Khumalo Open Manhole R80 000.00 Report send to AON, claimant informed 08-Jan-15 Active Letter of Demand

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Annexure N JRA Board and Committees Attendance Register: 2nd Quarter 2015-16

BOARD AUDIT RISK & IT SDC REMCO

Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 Q1

7 Dec 9 July (S 5) Workshop 7 30 July 23 Sept Interchange 21 Sept (S 6) 31 Aug Budget and Workshop 3 Workshop 4 2 Nov 15 Dec (S 20 Aug Project (All Interchange Name Designation (S1) 30-Sep 26-Nov Business Plan, 09-Sep 23-Nov 14-Sep 04-Nov 24-Jul 04-Sep 13-Nov 11-Sep 06-Nov Strategy Board and AFC Interviews with MMC) (S2) Board Project & Financial Risk appetite and Risk SCM Startegy members Strategy and Asphalt were invited Plant J Manche Non- executive Director / Chairman   x    x x     MI Msezane Non- executive Director   x      X   L Mashamaite Non- executive Director Chair - Remco                E Ngomane Non-executive Director / Chair SDC  x x         H Mashele Non- executive Director Chair Audit X             L Nxumalo Non- executive Director  x x   x x   X X X   X A Torres Non- executive Director Chair Risk & IT   x x       x   J Maina Non- executive Director  x        X  X X By Invitation B Ramasia Non- executive Director  x x  x x x x X  Arrived 4:30 X X X

G Mbatha Chief Financial Officer         X     X X M Kau Acting Managing Director                   

R Theunissen Indep. AC     J Maboa Indep. AC    x D Nyalunga Indep. AC x   x

CRM workshop with Linda Nxumalo MD Recruitment Other 7 August 2015 12 August 2015 - L Mashamaite & L Nxumalo 9 November - meeting with AG - L Mashamaite and H Mashele 8th October 2015 14 September 2015 - L Mashamaite & L Nxumalo 29th October 2015 23 October 2015 - L Mashamaite & L Nxumalo 25 November - L Mashamaite, J Manch & H Mashele

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