City of Johannesburg CONSOLIDATED GROUP ANNUAL PERFORMANCE REPORT FOR YEAR ENDED 30 JUNE 2009 In the future, Johannesburg will continue to lead as South Africa’s primary business city, a dynamic centre of production, innovation, trade, finance and services. This will be a city of opportunity, where the benefits of balanced economic growth will be shared in a way that enables all residents to gain access to the ladder of prosperity, and where the poor, vulnerable and excluded will be supported out of poverty to realise upward social mobility. The result will be a more equitable and spatially integrated city, very different from the divided city of the past. In this world-class African city, everyone will be able to enjoy decent accommodation, excellent services, the highest standards of health and safety, and quality community life in sustainable neighbourhoods and vibrant urban spaces. Glossary of Terms

AG Auditor-General ARP Alexandra Renewal Programme CAPEX Capital Expenditure CoJ City of Johannesburg DPLG Department of Provincial and Local Government ED Executive Director EE Employment Equity EIA Environmental Impact Assessment EPWP Expanded Public Works Programme GAMAP Generally Accepted Municipal Accounting GRAP Generally Recognised Accounting Practice GDP Gross Domestic Product GDS Growth and Development Strategy HR Human Resources IDP Integrated Development Plan IFRS International Financial Reporting Standards JW Johannesburg Water KPA Key Performance Area KPI Key Performance Indicator LED Local Economic Development LG SETA Local Government Sector Education and Training Authority MFMA Municipal Finance Management Act No. 56 of 2003 MD Managing Director ME Municipal Entity MIG Municipal Infrastructure Grant MMC Member of Mayoral Committee MSA Municipal Systems Act No. 32 of 2000 NSDP National Spatial Development Perspective NT National Treasury OPEX Operating Expenditure PMS Performance Management System PT Provincial Treasury RED Regional Electricity Distributor SALGA South African Local Government Association SDBIP Service Delivery and Budget Implementation Plan SCM Supply Chain Management SDF Spatial Development Framework SoER State of Environment Report 1 TABLE OF CONTENTS Glossary of Terms Chapter 1: Introduction and overview 3

1.1 Executive Mayor’s Foreword 3 1.2 Accounting Officer’s Overview 5 1.3 Executive Summary 11 1.4 Introduction 16 1.5 Overview of the Municipality 18 1.6 Planning Processes 21 1.7 City Priorities for 2006 to 2011 22 1.8 Governance Structure 24

Chapter 2: Performance Highlights 31

2.1 Introduction 31 2.2 Communication, Inter-Governmental Relations and Public Participation 31 2.3 City Priorities for 2008/09 34 2.4 City’s Performance against the Five-Year and Annual Targets 35 2.5 Municipal Infrastructure Grant and Other Grants 67 2.6 Provision of Free Basic Services 68 2.7 Financial Performance for 2008/09 68

Chapter 3: Human Resources and Organisational Management 71

3.1 Introduction 71 3.2 Human Resources Strategy 71 3.3 Human Resources Management 71 3.4 Organisational Structure 75 3.5 Performance Management 77 3.6 Governance 80

Chapter 4: Functional Service Delivery Reporting 82

4.1 Introduction 83 4.2 Community Development 87 4.3 Corporate and Shared Services 101 4.4 Economic Development 105 4.5 Environmental Management 117 4.6 Financial Sustainability 127 4.7 Governance and Legislature 134 4.8 Health 151 4.9 Housing 161 4.10 Infrastructure and Services 167 4.11 Public Safety 177 4.12 Spatial Form and Urban Management 188 4.13 Transport 196 4.14 Preparation for the FIFA Confederations Cup 207

Part 2 Financial Report 214

1 Home to more than 3.8 million people

2 3 Chapter 1: Introduction and overview

1.1 Executive Mayor’s Foreword The financial year 2008/09 marks the medium period of our current political term. In our efforts to dealwith poverty and under-development to improve the quality of life of citizens, our City remains committed to democratic governance to ensure that our short, medium and long term strategies, priorities and plans are implemented. Sustained implementation of our strategies contributes to the broader government programme of action as informed by the ruling party manifesto and political priorities.

Performance in this 3rd year of the term represents our unwavering commitment as we have seen stable progress amidst external challenges. The national elections and subsequent reallocation of political roles in 2009 affected the City’s political executive leadership and thus oversight on programme implementation. The global economic downturn constrained budgetary commitments and attainment of certain service delivery targets. Despite these challenges, the City of Johannesburg has sustained constant service delivery performance.

Good Governance and Financial Management The adequacy of internal management controls is a reflection of the City’s good governance practices. Evaluation of our financial and performance management systems by the Auditor General resulted in the third successive unqualified audit opinion. It is therefore no surprise that the long term credit rating outlook was maintained at a satisfactory AA- during the financial year. In addition, the City successfully implemented the new Rates Act and substantially reduced the debtor’s book through increased collection of outstanding revenue.

Human Resources Development The development of human resources is critical in ensuring improved service delivery. Annual Workplace Skills Plans are developed and implemented, with competency assessments continuously conducted and training interventions effected to address identified skills gaps.

Community Development and Safety Human development is not only internally focused through staff development, but also looks externally to improve Joburg’s people. The City embarked on several initiatives to promote skills development, library information services, entrepreneurship skills, and sports and arts and culture development. In absorption of the poor, we have intensified the Expanded Social Package Services to improve social assistance through provision of support services to vulnerable households and groups. Our care for communities is also evident in the several safety initiatives that the City conducted, which include fire safety, safety awareness to prevent drowning and traffic control to reduce road fatalities. Increased efforts will continue to be unleashed to combat crime.

Economic Development The City contributed to the national goal of job creation with the provision of more than 50 000 jobs through the Expanded Public Works Programme and Property Boomshare Strategy. Although potential investors were more risk averse considering the economic climate, outward investment in excess of R5 billion was secured in various areas within the City boundaries, including the Johannesburg Central Business District.

Environmental Management Our environmental footprint in contributing towards the global efforts to manage the effects of climate change is marked by the year’s focus on facilitating implementation of a range of environmental tools, including the Climate Change Mitigation Strategy. Other focused interventions are aimed at improving the quality of water resources, air quality, energy saving, and greening the City through tree planting and development of eco-parks.

2 3 Health Services In a bid to improve access to health services, the City has extended service hours and increased its fixed clinic service points. We have intensified the fight against HIV and AIDS through implementation of various programmes and better coordination with other spheres of government and civil society. Our HIV and AIDS prevalence rate has shown a decreasing trend in the past 3 years.

Housing Delivery The City of Joburg upholds the political commitment to better the lives of South Africans through accelerated housing delivery. More than 20 000 housing units were built during 2008/09, through mixed income, rental housing and community builder and people’s housing processes. Our future plans include increased focus on the formalisation of informal settlements, as this has implications for the provision of other basic services.

Infrastructure and Basic Services We have made great strides in the provision of basic services to our citizens, with all indigent households within the City receiving free basic services. All our households have access to a basic level of water service. We have extended a daily waste collection service to promote cleanliness and hygiene standards in informal settlements. The City is, through various means, dealing with the challenges of unaccounted for water and electricity losses.

Transportation The Bus Rapid Transit has been the City’s major transport focus for the year under review, with completion of Phase 1A, including 20 stations despite stakeholder management challenges. Transportation arrangements were successfully coordinated for the FIFA Confederations Cup.

Confederations Cup, FIFA 2010 and Mayoral Legacy Projects The successful hosting of the FIFA Confederations Cup affirmed the whole of South Africa’s capability to host the 2010 FIFA Soccer World Cup. As a host City, we are on schedule with preparations for the World Cup, ranging from security, transportation, accommodation arrangements to training and match venues and so on. The 2010 World Cup legacy is already implicit in the multi-million rand cash injection for the regeneration of the urban environment.

Mayoral Legacy Projects, such as greening of sports fields, development of Inner City street furniture and the public environment, upgrading of hostel units and development nodes, were successfully implemented.

The City’s 2008/09 Annual Report reflects on the stable progress that we have made in our endeavour to improve the quality of life of our citizens.

In this process of delivery, we appreciate the commitment of our legislature, political executive and administration to their respective oversight and implementation responsibilities.

4 5 1.2 Accounting Officer’s Overview As we present the Annual Report for the 2008/09 financial year, it is imperative that we provide an overview of our high points of success and of the failures we may have encountered in our endeavour to serve the people of our city. These are highlighted in the sector Key Focus Areas in the main report.

Financial Performance The budgetary allocation of the City of Johannesburg (CoJ) has increased steadily. The 2008/2009 budget was approved for an expenditure plan of R26 bn (billion), which represents an increase of 13.5% over the previous year’s figures. Of this amount R5,2 bn is for funding capital infrastructure and just over R21 bn goes towards the operating budget (the biggest municipal Budget ever in our country). This Budget also reflected the City’s unequivocal commitment to the principles of financial responsibility and integrity in terms of being realistic, responsive to IDP programmes and affordable.

This Medium Term Budget had to be evaluated against the backdrop of challenging global economic developments. For the first time the current ratio dipped to nearer 0.75 whilst the debt to revenue broke through the 50% mark. These developments became a clear sign of the critical liquidity constraints that had to be managed carefully.

• Substantial growth in bad debts from prior years was mainly due to the effect of the economic down turn on customers, which resulted in higher levels of non-payment and therefore increased provision.

• The 29% increase in interest on external borrowing was due to the increased quantum of borrowing compared to the 2007/08 financial year (borrowing in 2007/08 was R1.8bn compared to R2.6bn in 2008/09) as well as higher interest rates due to the state of the economy. Another factor was the cost of bridging finance which the City had to bear.

• There was substantial increase in bulk purchases (electricity and water specifically) in line with the increase in service charges which were in effect a pass-through cost.

• The City experienced a 20% increase in contracted services mainly due to fleet service charges for the centralised fleet contract as well as the escalating IT costs.

Legal Oversight Some of the legal battles fought in the year included the eviction of people who had invaded a private building in the Inner City (the San Jose case) and the Operation Gcin’amanzi case, both of which were bound to create new case law in the country. These cases were closed at the Constitutional Court in favour of the City, which in essence strengthened the policy framework adopted by the City in rendering services and managing the City.

San Jose

• Notwithstanding the desperate need of accommodation, the issues centred on the City position that it had a programme to progressively realise the right to housing, and that it should not be interdicted from evicting occupiers.

• The City’s obligation to prevent unsafe conditions in its constitutional duty to provide access to adequate housing, and that it had made evictions primarily for safety reasons.

• The case addressed the right of a municipality to order occupiers by notice to vacate a building because it was necessary for their safety, and to apply for a court order if they fail to comply with the notice. The caes also addressed whether the City is precluded from exercising its powers to order persons to vacate unsafe buildings unless it first provides them with adequate alternative housing.

The court found that the powers of the City to order the vacation of unsafe buildings are not dependant upon its ability to offer alternative housing to occupants.

4 5 The Phiri Case

The case was about:

• The introduction of prepaid meters as a means to manage free water allocation, water losses and credit control, and if it was a discriminatory means.

• The quantum of water to be provided by the City as free basic water to residents.

• The right of the City to determine a policy in respect of services it renders.

• The extent to which the general public can be said to have been adequately consulted before the determination of a new policy.

The Constitutional Court held that the obligation placed on government by section 27 is an obligation to take reasonable legislative and other measures to seek the progressive realisation of the right. On the Free Basic Water policy, therefore, the question is whether it is a reasonable policy. The Court noted that it is implicit in the concept of progressive realisation that it will take time before everyone has access to sufficient water.

The Court concluded, in contrast to the High Court and the Supreme Court of Appeal, that it is not appropriate for a court to give a quantified content to what constitutes “sufficient water” because this is a matter best addressed in the first place by the government. The national government has adopted regulations, which stipulated that basic water supply constitutes 25 litres a person daily, or six kilolitres a household monthly. The City’s Free Basic Water policy is based on these regulations.

The Court concluded that it cannot be said that it was unreasonable for the City not to have supplied more, particularly given that, even in the applicant’ case, 80% of the households in the city will receive adequate water under the present policy. The Court noted that 100 000 households in Johannesburg still lack access to the most basic water supply, a tap within 200m of their households.

On prepaid water meters the Court held (contrary to the High Court and the Supreme Court of Appeal) that the national legislation and the City’s own by-laws authorise the latter to introduce prepaid water meters as part of Operation Gcin’amanzi. The Court concluded that the installation of the meters was neither unfair nor discriminatory.

Policy Environment The municipal environment is an ever evolving spectrum that continuously necessitates policy review in a diverse and dynamic environment. The City had adopted a strategic Rating Policy Framework. Greater challenges and exposure on the complexity of the The Municipal Property Rates Act, 2004 (MPRA) only became evident in the year under review.

The Municipal Property Rates Act

The General Valuation Roll sets out the market value of all properties in the city, and this value is one of the components used to work out the value of rates payable annually by property owners. The City implemented the MPRA fully for the first time in accordance with the provisions of the Act, on 1 July 2008. For Johannesburg this involves three major changes, namely:

• A change in the valuation basis, from site values to full market values;

• A new valuation roll, the first since 2001 taking into account the growth in the property market; and

• A new property rates policy, requiring the first significant reconsideration of property tax policy since well before the democratic transition.

6 7 As a result of these changes there was a total shift in tax incidence expected, not only between categories of properties, but also within the categories themselves.

In the process of public participation, the City outlined a set of principles to guide the development of the Rates Policy:

• That the City would adopt the principle of “revenue neutral”, therefore no significant loss should be incurred nor surplus gained through the implementation of the MPRA, to the total budget of Council;

• That the City would ensure equity and fairness to all categories of property; and

• That the City endeavour to find mechanisms to mitigate against huge increases on the individual property owner, as a result of the implementation of the MPRA, 2004. In terms of Section 229 of the Constitution, local government has to source funds to fulfil a developmental role. This basket of tax benefits was indeed used to fund developmental needs of the City in the form of ‘public goods’ – goods and services which benefit the community as a whole.

A major discrepancy arose when the ratios between different categories of targets distorted the total contribution to the rates base in a manner that prejudiced the residential sector and an in-year adjustment had to be effected for equalisation purposes.

Notwithstanding these difficulties, formal objections received to the new General Valuation Roll were less than 3% of more than 780 000 properties on the Roll. The main areas of objection were incorrect value of property, incorrect owner information, incorrect property categories, omissions, wrong street addresses and spelling mistakes. However the valuation was not without problems ranging from misdesignation of usage to updated development status, which ultimately resulted in revenue foregone as creative measures were being instituted.

Governance and Institutional Form The year under review straddled an election and a municipal midterm review. Adjustment was required where possible to accommodate the new mandate, as elections (whether for national or provincial government) are an expression of needs and expectations at local/municipal level. Therefore some of the governance structures had to be realigned after the elections.

The City has tenaciously continued on the road of service delivery using Municipal Entities (MEs) on an unprecedented scale in our country. This has contributed in part to some of the many best practices for services, governance and accountability in our business process. The MEs have also improved their performance threshold due to the focused nature in running their business operations.

The debate on the proposed provincialisation of health and ambulance services coupled with the implementation of national/provincial Occupational Specific Dispensation (OSD) were not concluded satisfactorily, and led to excessive staff attrition and additional financial pressures.

Service Delivery and Development Targets The percentage increases in household access to basic services are significant when considering that the population of the country grew by 8.2% between 2001 and 2007. However, the serious deterioration of municipal infrastructure due to age and environmental pressures will be one of the most significant service delivery focus areas in the next electoral term because the value of creating assets without adequate maintenance investment is simply futile. This requires greater resources allocation for maintenance and remedial reinforcements. This should be addressed in view of other competing challenges for better environmental projects such as basic services, housing, health and employment. Our response in the past few years has been to achieve a delicate balance at all times.

6 7 Waste Removal

The level of cleanliness in informal settlements has improved significantly (not yet ideal), following the weekly waste removal service in all the settlements within the City’s jurisdiction. These areas are in a healthier state, which reduces their propensity for outbreaks of disease.

Electricity

Although slow progress in the provision of electricity to formalised households has been recorded, about 78% of all houses have access to electricity. Furthermore, the unaccounted for electricity loss remains a challenge but good progress has been made in addressing issues of non-technical losses as a result of illegal connections.

City Power has worked with Eskom to implement a load-shedding management plan and develop demand- side management plans to respond to the electricity shortages experienced in early 2008. Consequently power disruptions were significantly reduced in the year under review.

Health

The Tuberculosis (TB) Control Programme significantly improved the number of TB patients cured since 2006. In 2002, only 54% of newly diagnosed patients suffering from TB of the lungs were cured, compared with 74% in 2007/08 and 76.7% in 2008/09. The improved cure rate has been achieved largely through making treatment more patient-centred and by instituting directly observed treatment protocols with the assistance of non-governmental organisations. The City of Johannesburg is regarded as the best performing municipality in the country for its implementation of the National TB Crisis Plan.

The Children and Youth Health Programme focused on immunisation. A significant proportion (90%) of children under one year of age were immunised against measles, while 100% were provided with Vitamin A. All severely malnourished children visiting City Health clinics were assisted and strictly monitored. A comprehensive awareness programme on the prevention of childhood accidents and injuries was implemented. Youth-friendly health sites have been established to encourage young residents to be healthy, well-informed and to seek assistance timeously.

Housing Delivery

By the end of June 2009, more than 56 000 housing units since 2006 had been accumulatively delivered by the City, including:

• Rental housing units;

• Housing opportunities that were created through the Community Builder Programme;

• Mixed income housing units; and

• The upgrading of hostels into family units.

By 2011 the CoJ plans to have delivered 100 000 new homes in an environmentally sustainable fashion.

Formalisation and Regularisation of Informal Settlements

With regard to the formalisation and regularisation of informal settlements, an action plan has been developed and completed. This seeks to address every single informal settlement of the total of 180 in terms of the urban form, service access and quality of life in a manner that creates certainty and enhances self-development opportunities.

Bus Rapid Transit (BRT) System

Our BRT programme aims to tackle congestion and improve public transport leasing while seeking to reduce significantly travel costs and the cost of business in general. The transport operational plan seeks to provide the City with all the relevant information necessary to support the planning, management and provision of Transport across all modes for the 2010 FIFA World Cup and beyond.

8 9 The plan aims to integrate transport in terms of the existing freeway system and Rea Vaya BRT, with a specific focus of linking the north-south corridor that links Soweto, through Parktown to Sunninghill. Further integration refers to the Gautrain rapid rail link from the airport to Sandton, as well as future links and upgraded Metrorail links at Park Station, Nasrec, Ellis Park and Orlando; ultimately forming the nexus of a maze of integrated effective public transport for the City. The all-inclusive public transport system that integrates not just different modes, but different operators and patrons in the transport sector, has been developed through participatory and consultative processes.

The system contradicts the typical concentric planning pattern that currently pervades transport routes i.e. all roads lead to the Inner-City. The multiple business nodes across Johannesburg and the integration of different economic classes means that the concentric pattern no longer makes sense in terms of contemporary movement patterns in the city or in terms of the location of economic or job opportunities.

The system also caters for disabled passengers, many of whom previously were forced to use private transport. All these factors increase the social and economic opportunities available to Johannesburg’s residents.

Social Support

One of the major pillars of the City’s growth and development strategy speaks to proactive absorption of the poor and facilitated social mobility, both of which would be enhanced through our social support policy framework.

The City’s indigence policy delivers benefits to people who live in poorer households. It is based on a combination of universal benefits available to all households and targeted benefits delivered according to an indigent register. At the start of the term of office all households in Johannesburg received the first 6kl water free every month and 50kWh free electricity if they were deemed to be lifeline customers. These allocations were subsequently increased. In July 2007 the allocation of free basic water was expanded to 10kl for all households on the City’s indigents register. There were approximately 119 000 registered indigent households at this point. In addition 4kl of emergency water was made available to households on prepaid meter systems. A mechanism was also put in place – the special needs water application mechanism – for households to approach the City for even more free water if their circumstances warranted it. In July 2008 the social package was further expanded with 100kWh of free basic electricity to all households, on condition that the household consumed less than 300kWh in that month.

Expanded Social Package (ESP)/ Siyasizana programme

The Siyasizana programme (technically known as the expanded social package) is a basket of benefits, which the City allocates to citizens based on their levels of poverty. It is designed to be a single-window approach to social assistance delivery. Over the next year it will become the universal platform for accessing programmes targeting poverty, delivered by all the City’s departments.

The system was designed with a particular emphasis on reducing the dependency of beneficiaries who are capable of being economically self-reliant, thus it is also a gateway to an aggressive intervention known as Job Pathways – a welfare-to-work programme which seeks out private sector job placements and new small business opportunities for those on the ESP register.

The programme uses a poverty index to target benefits more effectively, assigning different levels of assistance to different levels of poverty. This index takes into account income, number of dependents, disability and pensioner status and also takes into account (for those not currently homeless) how deprived the area within which a person lives is compared with other areas in the City.

According to the present index, this covers all individuals with incomes less than R3 366 per month categorised into three Bands. The City is the operational pilot for the National Integrated Social Information System (NISIS), a project of the Department of Social Development for different social support opportunities. This provides a single-view way of confirming formal income, grant income, housing subsidy and legal dependents.

This is a programme which combines information, based on ID number, from UIF, the SOC-PEN database of social grant recipients, the housing subsidy system and the Department of Home Affairs.

8 9 The City also provides a basket of services, including food, education, health, recreation and skills development to child-headed households in Johannesburg. In early 2008 it was established that 226 child-headed households qualified, the bulk of them in Regions A and D. Assistance for these households ranged from linking families to food garden projects, providing clothing and school uniforms to actual feeding schemes.

Conclusion The City Manager has been honoured to lead the management team of the CoJ since May 2006 and during the reporting period. When he assumed this responsibility, one of the first utterances we made as the Executive Management Team (EMT) in relation to OPCAR was that the art of getting things done and responsiveness, was not in the distant goals we set but in the desire and culture that accelerates the early attainment of results. In a short space of time, the clean audit is becoming a norm in the city and the markets are responding positively to the work we do. With this team, we truly believe we have lived up to those expectations in an environment that is generally accepted as adversarial and demanding.

During this period we have seen colleagues across the City, as well as in partner agencies, working tirelessly to drive forward the transformation agenda on behalf of our communities. This work has involved not just contributing to specific initiatives or projects, but building the links across different parts of government and the private sector, that are essential if we are to deliver truly citizen-centric services.

We have taken the opportunity in this Annual Report to reflect on what we have achieved and what remains to be done. One thing is clear – as we move into 2010, the challenges will be ever greater. The economic conditions over the next year and beyond will place tremendous burdens on many of our citizens, who will depend on effective public services more than ever.

Meanwhile, no effort is spared in attaining efficiency targets in our work and responding to the new performance framework. So the pressure to continue transforming will not go away. We look forward to working with all stakeholders to deliver ever better public services.

This Annual Report outlines the details of the various programmes managed by the departments of the City and how we have performed towards meeting the targets we set. We firmly believe that we are on track towards meeting the growth and development targets of the City in the context of a developmental state.

On behalf of management in the City, we wish to express our profound appreciation to Executive Mayor Masondo and the Mayoral Committee for their leadership and the opportunity that they have given to us to serve the people of Johannesburg. We also appreciate the support that we continue to receive from our different portfolio committees of the Legislature. The staff of the City continues to put in every effort to ensure our organisation implements its mandate effectively and that we, individually and collectively, are able to contribute to making a difference in the quality of life in our communities.

Mavela AV Dlamini City Manager Johannesburg 2009

10 11 1.3 Executive Summary The Executive Summary highlights the City of Johannesburg’s performance achievements and key deliverables for the 2008/09 financial year.

The City’s performance on service delivery has been relatively good. The economic challenges for the City, because of the global economic recession in the 2008/09 financial year, meant caution in expenditure, downward budget adjustments and subsequent deferred expenditure on some projects.

Community Development The sector has made substantial progress in improving social assistance. The delivery agenda has been implemented in accordance with the targets. The eligible population has been registered on the Expanded Social Package (ESP); the Social Package Services (SPS) were fully integrated with relevant departments and updated monthly; a bouquet of support services were provided to vulnerable households and groups including child-headed households, senior citizens, women, youth and people with disabilities. The rental subsidy process was finalised. More than 6 000 job opportunities were created through the Expanded Public Works Programme (EPWP), including 640 labourers facilitated through the Job Pathways Programme, increasing the total number of individual beneficiaries to 1 583.

On human development, two shelters were developed for the rehabilitation of children living and working in the streets. The number of caregivers who were trained is 609 and more than the targeted 10 000 orphans received support.

Several initiatives were undertaken to promote skills development, library information services, sports and arts and culture development. These included entrepreneurship skills development workshops, establishment of an African Literature Bookshop, maintenance of sports facilities, and historically disadvantaged youth participation in various sporting codes and creative industries.

Corporate and Shared Services The sector’s primary focus is ensuring efficient and effective utilisation of common resources, systems and administrative processes to promote optimal performance of management and service delivery sectors.

Performance highlights include 100% audit of all City corporate buildings to monitor compliance with the Occupational Health and Safety Act (OHASA) standards and rectification of all high-risk deviations. All corporate buildings were maintained to comply with OHASA standards and the service level agreement (SLA) was finalised for all departments. The programme to upgrade CoJ buildings included making it accessible for people with disabilities; all corporate building entrances and exits are accessible to people with disabilities. Public conveniences situated at the Metropolitan Trading Company (MTC) Taxi ranks were refurbished. Theft at Metro Centre was reduced even further through effective monitoring and maintenance of the access control system and the appointment of a new security provider.

A human resources competency assessment was conducted and training interventions were developed to address the skills gap. The Work Place Skills Plan for 2009/10 and the implementation report for 2008/09 were submitted to the Local Government Sector Education and Training Authority (LG Seta).

Economic Development Job creation, through the EPWP and Property Boomshare Strategy, has exceeded the combined annual target of 42 500 jobs, with an achievement of 51 389 jobs. An accumulated investment of R7.1bn (billion), against the annual target of R2.5bn, was attracted into the City through acceleration and expansion of the Urban Development Zone Tax incentives. The destination brand and marketing strategy was implemented, with participation in various international and local road shows and exhibitions.

10 11 More than R5bn worth of investment was secured in Bruma, Jabulani, Randburg and Sandton. The Development Bank of Southern Africa (DBSA) provided funding to start the financial and business modelling for decking the railroad gulch area between Braamfontein and the CBD, as well as the industrial area between Doornfontein and Fordsburg.

Budgetary constraints remained a challenge as financial institutions and investors were more risk averse because of the economic downturn. Although the City supported many Small, Micro and Medium Enterprises (SMMEs) to establish their businesses, the launch of the R1bn Jozi SMME Equity Fund and the Soweto Empowerment Zone were postponed.

Environmental Management Since its re-establishment in 2006/07 as a sector, environmental management has focused on ensuring that environmental tools such as an open space management framework, air quality guidelines, environmental management framework, a climate change mitigation strategy and an environmental management system are in place. The focus in the 2008/09 financial year was on facilitating the implementation of such tools.

Performance highlights of this sector include focused interventions at water quality hotspots (Bosmont, Mshenguville, Alex/Wynberg, Kaalspruit, Diepsloot) through EPWP river clean up programmes; ongoing roll out of Basa njengo Magogo domestic air pollution reduction programme (more than 36 000 households); facilitation of climate change mitigation programmes such as ongoing climate proofing at Cosmo City (about 600 households – solar water heaters; rainwater harvesting); and a Bus Rapid Transit (BRT) emissions study. Visitors to the zoo exceeded 500 000, with learners exceeding 170 000. City greening progressed well with more than 60 000 trees planted and ecoparks (Dlamini and Mofolo nodes) successfully completed as part of the Kliprivier/Klipspruit Greening Programme.

Financial Sustainability The current global economic crisis required prudent financial management. Nevertheless, the City’s rating outlook remained stable, with the long-term domestic credit rating maintained at AA-. About 91% of the capital budget was spent. The ratios of group cost and debt coverage have been kept well within the targets. The City successfully reduced its debtor’s book with collection of more than R2.8bn in outstanding revenue, exceeding the annual target of R1.8bn. The integration of the City’s billing system (Programme Phakama) was completed and tested, with roll out planned in 2009/10. The sector successfully facilitated implementation of the new Rates Act, which has been supported by ongoing communication and awareness campaigns and improved queries handling and resolution systems.

Governance and Legislature The sector continues to promote and implement governance mechanisms and innovations in communication, strategic planning, information and knowledge management, legal and compliance and risk management and internal audit. Supporting tools were reviewed and/or developed to ensure good governance. These included six by- laws, Protocol Guide, Section 57 Performance Management Policy, Group Performance Management Framework, the Integrated Development Plan (IDP) and Service Delivery and Budget Implementation Plan (SDBIP).

The completion and publication of the mayoral mid-term report; ongoing support and assistance to Lilongwe on the development of their Development Strategy; imminent international twinning arrangements between the CoJ and the Dutch Embassy, Luanda and Harare; progress made with Thusong Centre and migrants programme (Inter- governmental Relations with the Department of Public Service and Administration); completion of ward plans and ongoing service delivery communication.

The satisfaction indices, namely, effectiveness rating, household and business satisfaction, as measured through the 2009 Customer Satisfaction Survey, have all exceeded the annual targets. Draft areas of co-operation with different municipalities, including Naledi Local Municipality and the West Rand District Municipality, were developed. This resulted in a municipal administration intervention plan with the Naledi Local Municipality. A total of 105 ward plans were received for incorporation into the 2009/10 IDP.

12 13 Health Primary health care was strengthened through extended service hours and the increase of fixed clinic service points. The City intensified its fight against HIV and Aids through the implementation of programmes and co-ordination with other spheres of government and civil society. These efforts included establishing more antiretroviral sites. Access to antenatal care services, the tuberculosis cure rate and immunisation coverage of children under a year were improved. Key achievements include:

• Improved awareness of HIV and AIDS risks, prevention methods and available services.

• Reducing the rate of HIV infections – Johannesburg’s current prevalence rate of 30.6% is below the Gauteng average.

• City-wide access to comprehensive HIV and AIDS support services to ensure effective medical care and community care for people infected and affected by HIV and AIDS.

• The City implemented Jozi Ihlomile campaign to train community volunteers in prevention, care and support.

• The City has also firmed up its partnership with other spheres of government and non-government organisations (NGOs) through the Johannesburg Aids Council.

Gauteng HIV Prevalence

34 33 33.1 32.4 32 31.6 31 30.8 30.3 30 29.8 29.6 29 Prevalence Rate 28 27 2001 2002 2003 2004 2005 2006 2007

Although the prevalence rate is decreasing, it is still very high and the need remains to accelerate efforts to contain the disease. However, recruitment and retention of skilled staff have been affected by the OSD of the public service and lack of integration in the health sector.

Housing Delivery The acceleration of housing delivery is both a key IDP intervention and a commitment by the ANC to better the lives of South Africans. The City committed to creating 100 000 housing opportunities to the residents of Johannesburg in this mayoral term. To date 56 177 houses have been built.

12 13 Housing Five-year 2006/07 2007/08 2008/09 Totals As % programme target Performance Performance Performance of Mixed 50 000 11 108 6 071 6 236 23 415 47% CBP 30 000 1 856 6 918 8 614 17 388 58% Rental 14 000 1 238 6 528 6 286 14 052 94% Hostels 5 000 105 375 842 1322 26% Totals 100 000 14 307 19 892 21 978 56177 56%

The housing delivery target of 17 000 for the 2008/09 was exceeded with 21 976 units built. Public Private Partnerships (PPPs) have assisted in the regeneration of the Inner City with refurbishment of buildings for temporary emergency and rental accommodation. Mixed income, rental housing units and community builder and people’s housing process units were delivered beyond planned targets. The upgrading of hostel units was slow, with only 26% delivery.

The formalisation programme has not shown any progress during this financial year. The target of formalising 50 informal settlements was not achieved due to the long lead times in the formalisation processes, which were not anticipated. Formalisation has implications for other basic service delivery mandates such as the provision of water and sanitation, and electricity. The City has established a Joint Operations Committee that will review interdependencies such as in the formalisation process.

Infrastructure and Service Delivery The CoJ made great inroads into providing basic services to its citizens. All indigent households receive free basic services.

The proportion of households receiving water services was 96.78%, which excludes areas serviced by water tanks. All households within the City have access to a level of water service. In 2008/09, after delays in the formalisation process to ascertain Level of Service 1 (LoS1) water services, the Ward Councillors intervened to assess the extent of the need. They registered this at 2 825 households, which was used as the revised annual target. By the end of the year, 4 782 more households received LoS1 water services – an achievement of 169%.

The household coverage of sanitation services was 90.03%, which excludes areas where chemical toilets are used. Against a revised target of 6 010, a total of 7 283 households were provided with basic sanitation, translating into a 121% achievement.

Unaccounted for water losses remain a serious challenge for the City. The annual water loss for 2008/09 was 36.15%. The suspension of Operation Gcin’amanzi had an adverse effect on water loss reduction, especially in unmetered areas.

A total of 5 029 households were electrified against a revised annual target of 5 000. The electrification target was reduced because of delays in the formalisation process.

Electricity loss was 14.33% against the 12% annual target. The main contributor to the non-technical electricity losses was illegal connections. There are ongoing initiatives undertaken with the Johannesburg Metro Police Department to reduce losses. These include meter audits, the removal of illegal connections, tip-offs and summonses.

The daily waste collection service was extended to include 85 informal settlements against a targeted 84. Implementation of the Demand-Side Management Programme resulted in 17.7% reduction of waste to landfill site.

14 15 Public Safety Safety awareness was promoted through the Karabo Gwala Winter Safety Campaign that educates communities and the youth on the dangers of veld and refuse fires, and the safe use of paraffin stoves and imbawulas, among others. More roadblocks and traffic control initiatives reduced annual road fatalities by 22% against a target of 17%. Although 9 094 arrests were made for criminal activity, crime remains a challenge. The City experienced a 1.28% increase in crime. Master plans have been developed and simulation exercises conducted on safety and security plans for the 2010 FIFA World Cup.

Funds for the establishment of the Disaster Management Centre were diverted to the establishment of the Joint Command Centre, which was used for the FIFA Confederations Cup 2009 and will be used for other major events. The planned appointment of 500 more Metro police officers was scuppered by financial constraints.

Spatial Form and Urban Management The sector continued to provide strategic spatial planning for the City. Other important activities include ongoing urban management and service delivery monitoring, management of the Alexandra Renewal Programme (ARP) and the Cosmo City Project, as well as co-ordinating the implementation of the Inner City Charter commitments.

Performance highlights of the sector include the promulgation of the Special Zone for Transitional Residential Settlement Area, realising work done by the City on regularisation of informal settlements; completion of the City- wide Township Regeneration Strategy and Programme and soliciting catalytic funding (NDPG) for implementation of some of the identified programmes; completion of strategic projects (through Johannesburg Development Agency (JDA) including Inner City, BRT and 2010; increased visibility and by-law enforcement through by-law blitz operations with more than 260 blitzes undertaken, mainly focusing on the Inner City (Region F).

Feasibility studies were conducted to inform layout plans for the formalisation of informal settlements that were on public land and could be upgraded in-situ. A total of 18 settlements were identified for regularisation.

Transport The sector continued to deliver Transport services of the 2003/08 Integrated Transport Plan (ITP) that was approved by Council, the Gauteng MEC for Public Transport, Roads and Works and the Minister of Transport. High on the agenda of the sector was the BRT project.

Performance highlights include successful completion of BRT Phase 1A, which involved construction of 20.6 lane kilometres and 20 stations despite stakeholder challenges; successful co-ordination of transport for the FIFA Confederations Cup 2009; ongoing partnership with other government spheres – among other achievements, 11.9km of the June 16 trail were reconstructed; and integration with other public transport networks, Gautrain in particular. The sector also continues to provide support for 2010 projects and most Transport components were near completion with Ellis Park precinct 100% complete, while Nasrec precinct was within target at 65% completion.

Confederations Cup, FIFA 2010 and Mayoral Legacy Projects The FIFA Confederations Cup 2009 was successfully hosted with operational plans fully implemented and the City obtaining a 75% success rating from FIFA. All match and training venues were upgraded and readily available. The Ellis Park stadium and precinct were developed fully and handed over to FIFA in February 2009. The precinct received a multi-million rand cash injection for regeneration of the urban environment, an investment that the Confederations and World Cups made possible.

The FIFA Confederations Cup 2009 provided a learning platform for the 2010 FIFA World Cup preparations. The City is on schedule with commitments in preparation for the 2010 FIFA World Cup. Although Phase 1A of the BRT was not ready for the FIFA Confederations Cup 2009, operations began in September 2009.

14 15 Mayoral Legacy Projects

The Mayoral Legacy Projects were successful, except for the development of the Soweto Theatre and indoor swimming pool. Both were hampered by budgetary constraints. The achievements include:

• Greening of the ten identified soccer fields.

• Indoor Olympic swimming pool: Designs have been completed. A Municipal Infrastructure Grant (MIG) of R90m (million) has been approved and funding is to be raised from the private sector for the balance of R80m to complete the project.

• Soweto Theatre: The sod-turning ceremony by the Executive Mayor with the Minister of Arts, Culture and Heritage was held on 12 February 2009. The contractor is expected to be on site in April 2009.

• Inner City Street Furniture: Projects such as these provided benches, lighting, multi-purpose bins, paving and public art, and Mosaics.

• Diepkloof Hostel Units: One hundred and thirty-six Diepkloof Hostel units are near completion, with water and sewer connections in progress.

• The Mofolo Park and Orlando Dube node developments are 100% complete. 1.4 Introduction Democracy in South Africa is underpinned by a social contract between the governed (the citizenry), and the authority that governs. This is especially true in local government, which is the closest sphere of government to the citizenry. This social contract requires that leaders involve citizens in decisions about their government, including the determination of priorities and key programmes of the City.

Local government is positioned to create the participatory framework that defines and enhances the relationship between representatives and the citizenry. Part of its mandate requires that the leadership of the City provide regular and predictable reporting on programme performance and the general state of affairs in their locality. The CoJ, at the 1 March 2006 Local Government Elections, recommitted itself to building Johannesburg into a World- class African City and providing regular feedback on its performance.

The annual report ensures that there is regular, impartial feedback to stakeholders, thereby strengthening accountability and transparency. The Municipal Finance Management Act (MFMA) requires that the City and its municipal entities prepare an annual report for each financial year. Section 46(1) of the Municipal Systems Act (MSA) requires municipalities to prepare a performance report for each financial year, setting out the performance of the municipality and its external service providers, a comparison between targets and performance in the previous financial year and measures to improve performance.

The annual performance report must form part of the annual financial report. Circular 11, issued by the MFMA, provides guidance on the formulation and preparation of annual reports.

The 2008/09 Annual Report reflects the performance of the CoJ for the period 1 July 2008 to 30 June 2009. The Annual Report has been prepared in compliance with Section 121(1) of the MFMA. Table1.1 sets out the relevant annual reporting requirements of the MFMA.

16 17 Table1.1: Annual Reporting Requirements

Section of Requirement Legislative Provision MFMA

121(3)(a) Annual report with consolidated Annual financial statements of the municipality, and, financial statements if Section 122(2) applies, consolidated annual financial statements, as submitted to the Auditor-General (AG) for audit interms of Section 126(1)

121(3)(b) AG’s audit report AG’s audit report by Section 126(3) on those financial statements

121(3)(c) Annual performance report Annual performance report of the municipality prepared by the municipality by Section 46 of the Municipal Systems Act

121(3)(d) AG’s performance audit report AG’s audit report by Section 45(b) of the Municipal Systems Act

121(3)(e) Accounting officer’s assessment Assessment by the municipality’s accounting officer of on arrears any arrears on municipal taxes and service charges

121(3)(f) Accounting officer’s assessment of Assessment by the municipality’s accounting officer of performance on each vote of the its performance against the measurable performance budget objectives referred to in Section 17(3)(b) for each vote in the municipality’s approved budget for the relevant financial year

121(3)(g) Audit corrective actions Particulars of any corrective action taken or to be taken in response to issues raised in the audit reports referred to in paragraphs (b) and (d)

121(3)(h) Explanations to clarify financial Explanations that may be necessary to clarify issues in statements the financial statements

121(3)(i) Other information Information as determined by the municipality

121(3)(j) Audit Committee Recommendations of the municipality’s Audit recommendations Committee

121(3)(k) Other prescribed information Other information as may be prescribed

16 17 1.5 Overview of the Municipality Profile of the City Johannesburg is one of the most powerful commercial centres on the African continent. It is an African City that works: telecommunications, electricity, broadcasting, clean water, Transport infrastructure, health care, accommodation, office buildings, conference centres and recreational facilities are world-class.

Geographical Location and Land Area

Johannesburg is 550km south of the northernmost part of South Africa and 1 400km north of the southernmost tip. The City is far inland from the coast (the nearest major harbour, Durban, is 600km south-east). The City stretches over 1 644km². The Figure 1.1 below shows the geographical location of the City.

Figure 1.1: Location of the City of Johannesburg

18 19 Demographic Profile Population

Johannesburg is the most densely populated and urbanised municipality in South Africa, home to 3 888 182 people in 1 165 014 households1. This makes up 7% of the national population and 37% of Gauteng’s population. The City’s population has consistently grown faster than the national average, increasing at 6.7% a year between 1996 and 2001, with a current growth rate of 3.16%. Although annual growth rates appear to be slowing down, the City is planning for a population of four million by 2010/11 and one million more people by 2016/17. It is anticipated that Johannesburg would have about six million people in 2024, in an urban region of 15 million people.

Population trend projections show that the population of South Africa, Southern Africa and Africa will continue to increase. By far the largest population increases are amongst the poor, who place particular strain on the environment, with the worst situations in informal settlements. Many migrants to Johannesburg are from other countries, and this raises particular challenges. Many of the immigrants exist outside City systems, are unable to access urban benefits, and their marginalisation is compounded by xenophobia.

The population in Johannesburg is predominantly African (75%), with females in the majority at 52%. The dominant spoken languages are isiZulu and English.

Populations are predominately growing younger, with life expectancies shortening, unlike in most developed countries where populations are getting older rapidly. The Johannesburg population is relatively young, with the largest proportion in the age category 15 to 34 years. The population younger than 35 years makes up 63% of the total population.

The relative youth of the population presents both challenges and opportunities. It suggests that there are many youngsters who are dependent on working adults. This is likely to increase in the face of HIV and Aids. It also means that there are increasingly younger people seeking work opportunities in Johannesburg. The high unemployment rate, combined with the rise in the number of people of job-seeking age, is a significant concern.

Education

As the economic powerhouse of the country, Johannesburg attracts skilled individuals and its population is becoming better educated. Compared with the rest of the country Johannesburg has the highest number of people with a tertiary level qualification, albeit the actual numbers are very low. By 2006 only 13.5% of the population had a post-matriculation qualification of any kind. Most of the adults have some or have completed secondary education.

Economy

Available data indicate that the economy of Johannesburg has grown by more than 6% over the past two years, and was up to 6.4% between 2006 and 2007. A range of sectors has driven this growth. Construction in particular, although a relatively small part of the economy, is growing at more than 19% per annum. Finance and business services, the largest contributors to economic value, are growing at more than 9%.

The City is working hard to increase the economic growth rate within the next few years. However, many local and global factors are beyond its control. This may mean that the desired rate of growth might not be realised. Efforts range from continuing to work to reduce the costs of doing business in the City, to ensuring that many more people and firms benefit from the growth that does occur, so that they can become part of the growth engine and push rates of growth still higher.

Over the past three years Johannesburg has experienced an unprecedented property boom, particularly on the northern edge, with prices in some areas escalating by as much as 300%. Unprecedented growth tends to outstrip the available infrastructure and leads to traffic congestion, power outages, and overflowing stormwater drains. It also places a huge strain on the environmental quality of the city. Increases in car ownership also create higher volumes of road traffic; demand for water and energy increases and large amounts of domestic refuse are generated.

1. Statistics South Africa: Community Survey, 2007

18 19 Johannesburg has a 32.1 poverty rate, which is unacceptably high. The City’s Gini co-efficient was 5.9 in 1996 and has improved to 5.6 but with much work still to be done to ensure a more equal society. Income inequality is higher among African (0.53) compared to Asian (0.26) and white (0.28) families.

The labour force composition of the Johannesburg metro is shown in Figure 1.2. Although it has one of the highest unemployment rates of all the six metros in the country, there has been a substantial growth in employment, especially between 2001 and 2006 when employment increased about 17% while the unemployed increased by roughly 7%. Unemployment among the economically active population is lower than for South Africa as a whole – 38% against a national average of more than 40%.

Figure 1.2: City of Johannesburg Labour Force Composition

The annual household income composition of the Johannesburg metro is shown in Figure 1.3. It is clear that the level of affluence of households is fairly high with about 40% having incomes of about R75 000 or more per annum. It is also evident that a large percentage of the wealthiest households in South Africa are found within the Johannesburg metropolitan area.

Figure 1.3: City of Johannesburg: Annual Household Income

20 21 Johannesburg has set its sights on becoming a World-class African city in which all residents can enjoy the fruits of economic growth and job creation and lead prosperous and healthy lives. Income inequality and the high percentage of the population infected with HIV or living with AIDS, with their demand for higher social and health costs in the medium term, remain the main burden on future economic growth. 1.6 Planning Processes�2 The annual report addresses the performance of the City on its core legislative obligations and service delivery priorities. A municipality’s performance is assessed primarily against its development priorities and the objectives cited in its Integrated Development Plan (IDP).

The planning process followed by the City and the outcomes of these planning processes are important for defining the City’s Growth and Development Strategy (GDS) and IDP, two inextricably linked documents that constitute a coherent strategic plan. A summary of the planning process is illustrated in Figure 1.4.

Figure 1.4: City of Johannesburg Planning Processes

The CoJ approved its GDS at the beginning of the electoral term. The GDS focuses on the longer-term strategic direction the City should take. It further sets out what is to be done to accelerate economic growth and enhance development to benefit all the residents of Johannesburg, and to contribute to South Africa’s transformation. These initiatives would be undertaken jointly with the City’s social partners.

The Municipal Systems Act says that the IDP must include “a vision for the long-term development of the municipality”. It must also include “development strategies which must be aligned with any national or provincial sector plans and planning requirements”. The IDP is the translation of strategy and political priorities into a detailed plan that becomes the pillar for budget choices and the actual outcomes for residents. It defines the medium-term path, spelling out where the City wants to be after the five-year IDP and how it intends to get there. It includes sector plans and the five-year IDP scorecard. The IDP is reviewed annually. The annual review includes development of the one-year scorecard, which is cascaded into the Service Delivery and Budget Implementation Plan (SDBIP).

The annual report focuses on the review of and reporting on the implementation of the IDP City Scorecard and sector delivery agenda.

2. Circular 11 refers to this section as Executive Summary which mainly focuses on the planning process followed, city overview, the geographic and demographic information, challenges and planning priorities and the governance structure.

20 21 1.7 City Priorities for 2006 to 2011 The City’s vision, long-term strategic perspective and development paradigm captured in the GDS, inform the City’s Mayoral-term priorities. The City’s vision is an expression of Johannesburg’s continued role as a wealth leader and opportunity creator – a role it has played for more than a century. But it also emphasises the need to transform Johannesburg from a city where only a few enjoy the fruits of prosperity, while the majority continue to struggle:

In the future, Johannesburg will continue to lead as South Africa’s primary business city, a dynamic centre of production, innovation, trade, finance and services. This will be a city of opportunity, where the benefits of balanced economic growth will be shared in a way that enables all residents to gain access to the ladder of prosperity, and where the poor, vulnerable and excluded will be supported out of poverty to realise upward social mobility. The result will be a more equitable and spatially integrated city, very different from the divided city of the past. In this World-class African city for all, everyone will be able to enjoy decent accommodation, excellent services, the highest standards of health and safety, and quality community life in sustainable neighbourhoods and vibrant urban spaces.

The development paradigm was identified through extensive consultation that put forward six core development principles:

• Proactive absorption of the poor: The City acknowledges that the needs of the poor must be prioritised, and therefore will facilitate the transition of the poor, identified as new households, new internal and circular migrants, those in hostels, informal settlements and historical ghettoes, youth and refugees.

• Balanced and shared growth: The City will continue to keep the cost of doing business as low as possible, but will also aim to ensure that the benefits of growth are shared more broadly.

• Facilitated social mobility and equality: It is crucial to Johannesburg’s development that people be assisted out of poverty through shared growth and other measures.

• Settlement restructuring: Restructuring includes bringing jobs closer to people and people closer to jobs.

• Sustainability and environmental justice: Johannesburg must become a more sustainable city by anticipating and managing the effects of environmental change. It also means promoting environmental justice, as well as ensuring that quality of life is enhanced, by extending green infrastructure to areas that have historically functioned as grey and featureless dormitory townships.

• Innovative governance solutions: The City recognises that the development challenges cannot be met alone. The City of Johannesburg is committed to finding joint solutions to these challenges by working closely with citizens, communities, business, all spheres of government and interested stakeholders.

The vision, long-term perspective and development paradigm that determine the City’s priorities, have been organised into twelve sectors through which they are expressed practically. These sectors and their plans are contained in the 2006/11 and annual IDP.

1.7.1 Summary of the key focus areas for the sectors for the 2006/11 Mayoral term Community Development

• Facilitate community-based sporting initiatives; • Develop an approach for triple bottom-line reporting by municipal entities (MEs); • Ensure operating expenditure (OPEX) for existing initiatives in the Arts; and • Maintenance and upgrading of recreational facilities.

22 23 Corporate and Shared Services

• Guard against unauthorised, irregular and wasteful expenditure; • Provide world-class public conveniences; • Provide a high standard of human resource services to City employees; and • Provide excellent administrative support services to stakeholders.

Economic Development

• Focus on the development of artisans in the construction industry; • Investigate the viability of the Grameen Bank Model as an instrument to fund emerging women entrepreneurs; • Investigate ripe industries, sectors and economic activities for public/private partnerships (PPPs); • Consider strategies to encourage savings; • Package 2010 programmes to source external funding and attract investment; and • Focus on small traders and young entrepreneurs.

Environment

• Consider focused strategy for climate change; • Support the management of rubble dumping; • Consider alternative burial options; and • Focus on rehabilitation of Klipspruit and Jukskei rivers.

Financial Sustainability

• Create effective financial management systems; • Improve revenue generation; • Institute prudent expenditure practices; and • Develop higher standards of customer care and responsiveness.

Governance

• Encourage good governance practices; • Strengthen public participation and ward-based planning; • Develop higher standards of customer care and responsiveness; and • Encourage building of partnerships.

Health

• Consider the important role of environmental health for 2010; • Extend clinic hours; • Consider the impact of the provincialisation of health services; • Implement pest control in informal settlements; and • Focus on mental health needs.

Housing

• Explore the affordability of social housing; • Consider the availability of land for housing development urgently; • Analyse economic impact of housing on the City; • Make greater efforts to reduce backlogs; • Fast-track township development; • Encourage mixed income development; and • Fast-track transitional housing.

22 23 Infrastructure and Services • Provision of basic services and maintenance of services infrastructure; • Build greater linkages with ESKOM to manage and reduce power shortages; • Focus on the Infrastructure and Services Department component of illegal dumping; and • Foster the current discussions on Johannesburg Regional Electricity Distributor (RED).

Public Safety

• Improve disaster management readiness; • Improve by-law enforcement; • Inculcate a shift from traffic control to policing; • Focus on issues in the provincialisation of emergency services; and • Focus on response times for emergencies.

Spatial Form and Urban Management

• Package new developments such as the renovation and reconstruction of Park Station to attract external funding through investment or PPPs; • Focus on nodal development such as Soweto and Alexandra; and • Improve response times for development and planning applications.

Transport

• Consider proactive and systematic maintenance of roads, bridges and stormwater drainage; • Focus on BRT integration with other sector plans and MEs such as Metrobus; • Focus on the intergovernmental dimension of 2010 Transport Strategy; and • Ensure effective management of road diversion during Gautrain construction.

2010 FIFA World Cup

The Mayoral Lekgotla in February 2007 outlined a strategic framework to address the requirements for a successful 2010 FIFA World Cup. The framework identified three key elements:

• Full compliance with FIFA requirements with a distinctively African flavour through exceeding requirements in the Host City agreement and in the Government Guarantees signed by national government;

• Present a World-class African fan experience – from food to fun, music to Mandela Bridge, urban forest to urban highways, warm people and never-ending magic; and

• Leave a positive, sustainable legacy for the citizens of Johannesburg through catalysing nation building, socio- economic development and therein the delivery of GDS goals. 1.8 Governance Structure Municipal councils in South Africa perform legislative and executive functions. The City is one of two municipalities to pilot a new governance model refining among others the roles of the executive, council and administrative heads, level of decision making, accountability, institutional structures and the oversight of MEs by the respective core departments.

The key role of Council in the new structure is to focus on legislative, participatory and oversight roles. Council delegated its executive function to the Executive Mayor and the Mayoral Committee. Council’s principal and most substantive role is that of a lawmaker. The other key role is to debate issues publicly and to facilitate political debate and discussion. The organogram in Figure 1.5 shows the governance model.

24 25 Figure 1.5: City of Johannesburg Governance Structure

The Council receives regular reports on the exercise of executive powers, including quarterly and annual reports on the exercise of delegations and overall performance, from the Executive Mayor and Mayoral Committee. Council held ten scheduled meetings and three special meetings during the year under review.

Section 79 Portfolio Committees Section 79 oversight committees have been constituted and are chaired by non-executive Councillors. The portfolio committee’s primary responsibility is oversight of the executive arm of the City’s governance structure. Section 79 portfolio committees monitor the delivery and outputs of the executive, and may request departments, MEs and Members of the Mayoral Committee (MMCs) to account for the outputs of their functions.

This governance model also separates Councillors, as public representatives, from those responsible for executive decision-making and day-to-day operations. Although the Section 79 portfolio committees play an oversight role, they do not have any decision-making powers. These committees are responsible for submitting reports to Council as the Legislature. In the 2008/09 financial year they submitted 1 050 reports to Council. The Section 79 portfolio committees for the 2006/11 Mayoral term and their Chairpersons are shown in Table 1.2.

Table 1.2: Section 79 Portfolio Committees

Committee Chairperson Chairperson Councillor P Naidoo Finance Councillor S Mogase Economic Development Councillor TZ Phakathi Community Development Councillor JM Nemaungani Housing Councillor C Seefort Infrastructure and Services Councillor S Mulaudzi

24 25 Environment and Corporate and Shared Services Councillor S Cowan Development Planning and Urban Management Councillor T Mabotja Transport Councillor C Bapela Health Councillor PT Molekane Public Safety Councillor BD Zondi Inner City Councillor AE Boeta Municipal Public Accounts Committee Councillor S Cachalia Soweto Development Councillor V Sithole

The Council comprises 217 elected Councillors, constituted from 109 Ward Councillors, and 108 proportional representation (PR) Councillors. The portfolio committees are made up of Councillors drawn from all political parties. Parties and gender representation in Council are illustrated in Table 1.3.

Table 1.3: Political Parties: Seats and Gender

Party Total Seats Ward Seats PR Seats Gender African National Congress 137 75 62 F = 69 M = 68 Democratic Alliance 59 31 28 F= 27 M = 32 Inkatha Freedom Party 9 2 7 F = 2 M = 7 Independent Democrats 2 0 2 F = 0 M = 2 African Christian Democratic Party 2 0 2 F = 0 M = 2 African People’s Convention 1 0 1 F = 0 M = 1 Azanian People’s Organisation 1 0 1 F = 0 M = 1 Christian Democratic Party 1 0 1 F = 1 M = 0 Christian Front 1 0 1 F = 0 M = 1 Independent 1 1 0 F = 0 M = 1 Operation Khanyisa Movement 1 0 1 F = 1 M = 0 United Democratic Movement 1 0 1 F = 1 M = 0 Vryheidsfront Plus 1 0 1 F = 0 M = 1

Standing Committees Standing committees are permanent committees established to deal with Council matters. They are delegated some decision-making powers, and are required to submit reports to Council. Councillors chair all standing committees except the Audit Committee, which is chaired by an independent person in line with the prescriptions of the MFMA. Table 1.4 outlines the standing committees established and responsible Chairpersons for the 2006/11 Mayoral term.

26 27 Table 1.4: Standing Committees and Chairpersons

Committee Role Chairperson Rules Committee Develops and approves rules for the proceedings Councillor N Ntingane Determines focus areas to capacitate Councillors Allocation of members to various committees Petitions and Public Ensures proper and timeous responses to petitions Councillor N Ntingane Participation directed to the City’s departments and entities Ensures enhancement of public participation with rigorous monitoring of all public participation processes and systems Monitors function of Ward Committees Ensures incorporation of ward needs into the Council Ethics Committee Ensures declarations of financial interest and compilation Councillor N Ntingane of the Register of Financial Interest annually Considers any alleged breaches of the Code of Conduct of Councillors Programming Considers and improves items/ motions of the Council Councillor N Ntingane Committee agenda and agrees on the allocation of speaking time for the items and motions contained in the Council agenda Public Accounts Provides political oversight over financial management Councillor S Cachalia and accounts Soweto Development Drives and manages the regeneration development of the Councillor V Sithole Soweto area Audit Committee Reviews the financial reporting by the external auditors J John and reviews the activities of internal audit Provides independent oversight of financial management and accounts Committee of Ensures co-ordination of the work of all Oversight Councillor P Naidoo Chairpersons Committees

Political Leadership and Members of the Mayoral Committee The Executive Mayor of the CoJ, Councillor Amos Masondo, assisted by the Mayoral Committee, heads the executive arm of the City. The Executive Mayor is at the centre of the system of governance, since executive powers are vested in him to manage the day-to-day affairs of the City. He has an overarching strategic and political responsibility. The key element of the executive model is that executive power is vested in the Executive Mayor, delegated by the Council, as well as the powers assigned by legislation. The Executive Mayor is also the first citizen of the City and attends to ceremonial duties.

Although accountable for the strategic direction and performance of the City, the Executive Mayor operates in concert with the Mayoral Committee. Each MMC is responsible for a portfolio while remaining accountable to the Mayoral Committee and the Executive Mayor, in particular.

The changing political landscape propelled by the national and provincial elections meant that the City had to rearrange its political leadership accordingly. The City took the opportunity to reshuffle MMCs across portfolios to ensure greater focus and effectiveness. The majority of the MMCs who were appointed in 2006 had been retained but some were reassigned to different portfolios. Table 1.5 reflects the portfolios of the City’s political leadership and MMCs.

26 27 Table1.5: Political Leadership and Members of the Mayoral Committee and their portfolios

Portfolio Former Political Leadership and Mayoral Current Political Leadership and Committee Members Mayoral Committee Members Speaker of Council Councillor Nkele Ntingane Councillor Nkele Ntingane Chief Whip of Council Councillor Bafana Sithole Councillor Nonceba Molwele Executive Mayor Councillor Amos Masondo Councillor Amos Masondo Finance Councillor Parks Tau Councillor Parks Tau Economic Development Councillor Parks Tau Councillor Oupa Monareng Community Development Councillor Nandi Mayathula-Khoza Councillor Bafana Sithole Housing Councillor Strike Ralegoma Councillor Ruby Mathang Infrastructure and Services Councillor Roslynn Greef Councillor Christine Walters Councillor Prema Naidoo (Environment) Councillor Matshidiso Mfikoe Environment and Corporate Councillor Christine Walters (Corporate and Shared Services and Shared Services) Development Planning and Councillor Ruby Mathang Councillor Roslynn Greef Urban Management Public Safety Councillor Thomas Phakathi Councillor Elginah Ndhlovu Transport Councillor Rehana Moosajee Councillor Rehana Moosajee Health Councillor Matshidiso Mfikoe Councillor Bengeza Mthombeni

Municipal Administration The City administration is led by the City Manager as the Chief Accounting Officer of the CoJ. Mr. Mavela Dlamini is the head of administration. The City Manager serves as chief custodian of service delivery and implements political priorities. He is supported and assisted by his direct reports, who are responsible for specific service delivery focus areas. The City Manager and his direct reports constitute the Executive Management Team (EMT), whose structure is outlined in Table 1.6.

Figure 1.6: City of Johannesburg Organisational Structure

28 29 Table 1.6: City of Johannesburg Executive Management Team

Department Official City Manager Mavela AV Dlamini Group Chief Financial Officer and Executive Director: Finance Mankodi Moitse Executive Director: Housing Uhuru Nene Executive Director: Community Development Pilisiwe Twala-Tau Executive Director: Corporate and Shared Services Reuben Denge Executive Director: Economic Development Jason Ngobeni Executive Director: Revenue and Customer Relationship Management Vicky Shuping Executive Director: Development Planning and Urban Management Phillip Harrison Executive Director: Infrastructure and Services Themba Camane Executive Director: Health Refik Bismilla Executive Director: Environmental Management Flora Mokgohloa Executive Director: Transport Lisa Seftel Chief of Police: Johannesburg Metropolitan Police Department Chris Ngcobo Executive Head: Emergency Management Services Ntombi Gule Departments within the Office of the Executive Mayor Executive Director: 2010 Sibongile Mazibuko Executive Director: Public Liaison Khotso Kekana Acting Executive Head: Johannesburg Risk Assurance Services Leonard Radzuma Chief Information Officer Patrick Mayaba Director: Central Strategy Unit Rashid Seedat Programme Director: Phakama Abraham Mahlangu Director: Legal Compliance and Mayoral Committee Support Karen Brits Director: External Relations Lorraine Wilkinson Management of Legislative Arm of Council Secretary of Council Tshepiso Nage Municipal Entities The MEs are created as separate companies. These entities are wholly owned by the City and primarily provide services originally provided by Council. Table 1.7 shows the City’s 15 MEs, their respective chief executive officers (CEOs) or managing directors (MDs) and the City portfolio within which they are located.

The ME model defines the relationship between the MEs and the City as follows: • MEs are wholly owned by the City as per the Companies Act; • The City maintains policy and implementation direction, while allowing company boards and management to exercise relative autonomy in the execution of their fiduciary duties, as prescribed by the Companies Act; and • Oversight of line departments ensures closer alignment within the portfolio concerned.

Table 1.7: Municipal Entities and CEOs/MDs

Municipal Entity CEO or MD 2008/09 City Portfolio Johannesburg Water Gerald Dumas Infrastructure and Services City Power Silas Zimu Infrastructure and Services Pikitup Zami Nkosi Infrastructure and Services City Parks Luther Williamson Environmental Management Johannesburg Zoo Stephen van der Spuy Environmental Management Johannesburg Roads Agency Dudu Maseko Transport Metrobus Herman van Laar Transport Johannesburg Development Agency Lael Bethlehem Economic Development Johannesburg Property Company Helen Botes Economic Development Johannesburg Tourism Company Lindiwe Mahlangu Economic Development Metro Trading Company Alfred Sam Economic Development Johannesburg Fresh Produce Market Kgosi Ramakgopa Economic Development Johannesburg Civic Theatre Bernard Jay Community Development Roodepoort Civic Theatre Maretha Smit Community Development Johannesburg Social Housing Company Rory Gallocher Housing 28 29 Free basic services for all

30 31 Chapter 2: Performance Highlights

2.1 Introduction Performance management is a holistic process that incorporates business planning, developing and modelling an execution plan using key business metrics and ultimately reporting on the business operations against the execution plan.

In giving effect to this definition, the City has adopted a comprehensive performance management framework, which is implemented through the City’s scorecard. The scorecard is designed to be the most strategic management tool that identifies the CoJ’s annual priorities, establishes indicators and targets, and serves as the monitoring and reporting tool for measuring delivery against objectives.

The Municipal Systems Act 32 of 2000, the Local Government: Municipal Planning and Performance Management Regulations, 2001, require municipalities to adopt a performance management system. Once the IDP and budget have been prepared and approved, the City prepares the SDBIP in accordance with the MFMA. The SDBIP indicates quarterly service delivery and financial performance targets, and assigns responsibility for their execution. The City assessed its performance quarterly, and reported progress on performance against set targets to Council, and ultimately presents the annual performance in this annual report.

This chapter speaks to the performance highlights of the City’s scorecard, performance on basic service delivery and backlogs addressed the MIG projects as well as the spending priorities for the following year. It addresses the communication and public participation processes of the City to give a holistic view of how the scorecard was derived and how the City communicates performance to its stakeholders. 2.2 Communication, Inter-Governmental Relations and Public Participation Communication Strategy The City has a comprehensive communication strategy that includes structures on how to communicate with all stakeholders. The Public Liaison Department is responsible for implementing the communication strategy and co- ordinating public liaison based on the five-year strategic objectives. The strategy is revised annually in accordance with the IDP and budget. The main goal for 2008/09 was to attain a minimum of 60% proactive positive media coverage on the City’s success stories. Summary on progress in implementing the strategy during the year:

A better informed citizenry on all matters pertaining to the City’s service delivery and its impact on them: • Mayoral media briefings and MMC briefings were organised to facilitate proactive coverage • A balanced utilisation of electronic and print media has been effected • Electronic communication tools such as the CoJ Message and Bulk SMS are utilised effectively

Promote Johannesburg as a World-class African City: • Continued in-house training to internal stakeholders and suppliers about the application of the CoJ corporate identity • Sustained marketing campaigns to promote a positive image of CoJ to local and international stakeholders • Co-ordinated successful exhibitions and displays to market the CoJ during the Joburg Easter Festival • Delivered a successful shopping mall campaign to inform residents of the service delivery initiatives

Stage high profile events that showcase CoJ as a World-class African City: • Promoted the City’s hosting of the 2010 FIFA World Cup through radio and television interviews, media releases and the City’s 2010 website • Organised media tours for international media coverage of the FIFA Confederations Cup 2009 • Organised media tours and briefings for the local media to showcase milestones for 2010

30 31 Participation in IGR Structures

Intergovernmental Relations (IGR) is a central component of service delivery, since the public perceives government as a unitary structure, and pays little heed to jurisdiction niceties. Each sphere of government has a service delivery mandate ranging from social grants, free basic services and education, to policing and health, which require a robust intergovernmental engagement between spheres and agencies of government. In the spirit of IGR, the City has been involved in the following key engagements:

Engagement on the formal comments from the MEC for Local Government on the 2008/09 IDP and the City’s responses to each of the comments;

• Harmonisation and alignment on service delivery and key performance areas: * IDP Quarterly Engagements; * Sector Engagements between the City and the Gauteng Provincial Government; * Provincial IDP Analysis; and * Intergovernmental Projects; • National Spatial Development Perspective; • Provincial Growth and Development Strategy; • The Gauteng City Region (GCR); and • External Relations and City Twinning.

The City and Provincial commitments through IGR structures include: • Alexandra Renewal Programme (ARP); • Planning of Turnkey projects for the economic growth of 9% by 2011; • Arts, Culture and Heritage programmes; • Interventions to support creative industries; • Funding for community facilities; • Social amenities in the 20 townships programme. The City has committed itself to the Province’s Township Upgrading Programme which focuses on 20 townships in urgent need of social, infrastructure and economic investment; • Critical issues in the IGR dimension of transport are Transport nodes, the BRT and Gautrain. Through integration processes, the City sought alignment with the National Spatial Development Perspective (NSDP) to interconnect transport and economic nodes through their planning processes.

Public Participation

The separation of powers locates community participation and the development of participatory democracy, as defined in the 2006 manifesto of the majority party, within the Legislature. This is not an exclusive role, and the Executive and Administration are responsible for public consultation.

All participatory processes are aligned to the City’s annual planning and budgeting cycle and ensure the creation of the widest possible representative participatory opportunities, as well as effective utilisation of the scarce resources within the available budget. The intention is to complement resources allocated for service delivery.

Mechanisms to Communicate and Engage Stakeholders

Community and stakeholder consultation have been a prominent feature of governance within the City of Johannesburg in the past few years, through: • Commitment of Councillors and officials to community participation; • Functioning and effective Ward Committees; • Political interface with communities through Mayoral Road Shows; • Establishment of sector engagements during the IDP process with stakeholders; and • Extensive community involvement in the IDP process at ward and regional level.

32 33 Ward Structures (Ward committees and Ward Councillors)

Central to public participation is the Ward Councillor with the support of the Ward Committee. In Johannesburg Ward Committees are elected every two-and-a-half years although this is under review. The new elections were undertaken under the auspices of the Independent Electoral Commission (IEC) at the end of 2008. Ward committee members are vertically aligned with the Section 79 committees, and the MMCs cluster responsibilities.

Each Ward Councillor, with the support of the Stakeholder Relationship Management team, is expected to annually produce a community-based plan for the ward. The 2008/09 financial year marked the third consecutive year for this process, with 105 ward plans (out of the 109 wards) incorporated into the IDP for 2009/10.

The City strives to ensure that all wards function optimally against a clear set of criteria: • Provide communities with information; • Convene meetings; • Ward planning; • Service delivery; • IDP formulation; and • Performance feedback to communities.

The City also seeks to ensure that proportionally more residents are aware of and engage in the City’s annual community participation processes by: • Strengthening the mechanisms of community participation; • Deepening the outcomes of engagement; • Furthering the activities of the petitions process and road shows, as planned in the annual Calendar; and • Furthering the objectives of civic education, with a particular focus on educational institutions.

Community Based Planning and Outreach

The City’s commitment to public participation and consultation is based on its Constitutional and legal obligations and its overall governance model. In line with the City’s long-term vision, the City engages in public participation to “ensure that through its planning processes [it] empower[s] communities to generate ideas and contribute meaningfully in the creation of a more equitable and spatially integrated city”.

The community-based planning (CBP) provides the City with a well-defined methodology that deepens democracy to bring decision-making closer to its residents. The process is incremental and aims to upscale the development of ward plans in the City. The CBP is implemented through regional summits, which address challenges to the City’s planning and budgeting processes, and identify trends within each of the areas to respond strategically to them.

Regional and Stakeholder Summits

As part of the implementation of the CBP process, the City convened regional and stakeholder summits during March 2009 to solicit inputs from stakeholders on the proposed three-ward priority issues/projects for the medium term. The regional summits process entailed participation from Councillors, municipal officials, Ward Committee members, community development workers, and targeted communities, i.e. businesses, labour, and representatives from faith-based organisations. The summits also contribute to the development of the IDP and budget for the next financial year.

In the 2009/10 financial year, the City intends to consolidate CBP by introducing new innovations, which will include changes such as the standing orders and the introduction of by-laws to regulate the participatory activities; inclusion of ward issues into the departmental business plans; quarterly reporting on implementation of ward plans and a shift up to the end of this term of office away from CAPEX type projects in the ward-based plans; towards service delivery improvements in priority areas (service delivery hotspots).

32 33 Petitions and Public Participation Committee

Communities are encouraged to participate in the Petitions and Public Participation Committee, which the Speaker to Council chairs. This committee works closely with Councillors and communities to minimise risk of conflict. Members of the public are invited to participate in by-laws development to enhance legitimacy of the processes.

Further Public Participation Mechanisms

The City also engaged with various stakeholders including organised labour, business, women’s groups, NGOs, youth structures, student councils, people with disabilities and faith-based organisations. A regular newsletter, The Stakeholder, is also sent to about 10 000 identified stakeholders, primarily community or organisation leaders, to inform them of opportunities for participation. The CoJ continuously seeks ways and means to enhance public participation by reviewing current processes and implementing improved mechanisms.

2.3 City Priorities for 2008/09 Introduction The annual review of the 2006/11 IDP focused on considering the five-year objectives, IDP programmes and achievements in the context of shifting conditions and priorities. During this review, the key challenges and opportunities facing the City were considered and the key strategic interventions were identified.

Strategic Interventions The following strategic interventions for the 2008/09 financial year were confirmed during the above planning interventions:

• HIV and Aids awareness and support • Measuring of poverty and implementation of the revised social package • Growth Management Strategy • Formalisation of informal settlements • Basic Services Programme • Rea Vaya BRT Project • Inner City upgrading and regeneration through the Inner City Charter • Economic development initiatives to achieving 9% growth a year • Stimulating a functioning secondary property market • Energy, water and waste demand-side management • Greening of the city • Shared services delivery model • Targeted crime prevention and safety initiatives • Completing the Disaster Management Centre • Implementing the Karabo Gwala Community Safety Campaign • Implementing a safety strategy for the 2010 FIFA World Cup • 2010 FIFA World Cup Facilities, compliance requirements, fan experience, and legacy projects

34 35 2.4 City’s Performance against the Five-Year and Annual Targets High-Level Service Delivery Breakdown The CoJ is required, for SDBIP purposes, to provide non-financial measurable performance objectives in the form of service delivery targets and other performance indicators on the level and standard of service provided to the community. These consolidated targets and in-year deadlines are linked to top management output and constitute the City scorecard.

The following tables outline the sector performance against five-year and annual targets indicating the key performance indicators and performance to date.

Community Development The Community Development sector indicators are informed by the five-year IDP strategic objectives of addressing social exclusion and building a safe and healthy society, with special emphasis on vulnerable groups, i.e., women, children, youth and people with disabilities.

Table 2.1: Community Development Sector Indicators and Five-Year Target

Indicator Five-Year Target (2006/11) Percentage of projected eligible population registered for the 80% Expanded Social Package (ESP) Percentage SASSA social grant recipients receiving payment 90% through Johannesburg Paypoint and registered for ESP Percentage eligible children in households registered for the 90% social package and Bana Pele benefits Number of participants placed in formal employment or 17 000 independent contractors/entrepreneurs Number of shelters developed for children living and working Six in Regions A,B, C, D, E and G on the street Percentage of children living and working on the street removed 90% Percentage of children living and working on the street 90% rehabilitated Number of caregivers trained 7 000 Number of orphans receiving support 35 000 Percentage development of information on how to access 100% funding from CoJ in four languages Number of youth involved in African Literary Development 22 000 Programme Establishment of African Literature Bookshop Three in regions C,D and F Number of libraries with computer literary/numeracy centres 100% Percentage establishment of knowledge resource for CoJ policy 100% and strategy development 3 Percentage management and maintenance of sport facilities 100% according to norms and standards policy Percentage professional competitive sport development 4 85% Percentage development and implementation of heritage 100% strategy for historically disadvantaged areas Number of talented youth identified/developed through creative 1 000 industries from historically disadvantaged communities5 Number of monuments commissioned for cultural icons Three statues of an icon awarded (Region G, A and B)

3 50% Scoping and identification of resources and securing of approvals and funds; 75% procurement of physical resources and finalisation of human resource structure; 100% completion 4 Rugby, dragon boating, cricket, swimming and drum majorettes 5 Arts, fashion design, photography, music 34 35 Indicator Five-Year Target (2006/11) Number of informal sports fields grassed out of 35 scoped 35 grassed and fenced, six with ablution facilities Recreation streets in historically disadvantaged areas Regions Band C Revamping and completion of stadia (Rand, Dobsonville and 100% completion Orlando) Development of Soweto Theatre 100% completion and legal process of ME establishment Number of youth introduced to youth theatre via sponsored 7 100 tickets Number of Productions staged to attract new audiences 60

Table 2.1.1 Community Development Performance against Targets

Indicator 2008/09 Annual Actual Annual Comments on Progress Delivery Target Achievement Agenda Social Assistance Percentage of projected 50% 50% 50% There are 120 000 households in historic eligible population register with population of about 700 registered for the ESP 000 individuals, half (50%) of whom are registered on the ESP Percentage of integration 50% 50% 50% All relevant data-sets are fully integrated of CoJ Social Package and accessible to the new application Services (SPS) with developed by SITA to manage ESP relevant departments, applications. The databases are used to Home Affairs, UIF, Social verify individual circumstances and will be Development and SASSA updated monthly Percentage of child- 50% 50% 50% Implementation of a bouquet of services headed households for CHH on CoJ database is ongoing. (CHH) registered in CoJ Support includes individual learning database receiving social plans for CHH, food support, homework assistance according to support, sport and recreation support Batho Pele principles and health support Number of participants 2000 2000 6039 The sector, through its EPWP projects, placed in formal has created 6 039 job opportunities, employment or including skilled and manual labour on incubated as the construction of stadia and other independent contractors/ Capital projects entrepreneurs Human Development Number of shelters Two in 2 2 Two shelters developed: developed for children Regions E / A Wembley Stadium Hostel to living and working in the accommodate children living and streets working in the streets No 3 Kotze Street to accommodate abused women and children

36 37 Indicator 2008/09 Annual Actual Annual Comments on Progress Delivery Target Achievement Agenda Number of children 100 100 107 children 107 children were removed from the living and working in the streets and taken to the following streets removed from facilities for shelter: Inner City streets and Twilight rehabilitated Jabulani Kakkibos Kids Amakhaya YFC St Georges Turning Point Home

The facilities provide children with food, clothing, life skills, schooling family reunification, among others

A relationship with SANCA was established and rehabilitation programmes for these children are ongoing

Number of caregivers 1 000 1 000 609 The number of caregivers trained is 609 trained Training facilitation depended on the Department of Labour’s provision of accredited training: 153 ECD practitioners trained in ECD compliance 80 trained in financial literacy 84 principals trained in mentoring and coaching 124 caregivers trained in storytelling/ reading skills by LIS 20 people were trained in counselling and trauma debriefing 88 trainees trained on home-based Care 60 Nokuthula Special School caregivers trained in fire safety Number of orphans 10 000 10 000 10 747 Support to vulnerable groups has ensured receiving support that 10 747 orphans and vulnerable children are assessed, registered on database and connected with provincial and national interventions The City’s interventions include: Food support by JFPM Sport and Recreation programmes Educational Support Health Support

36 37 Indicator 2008/09 Annual Actual Annual Comments on Progress Delivery Target Achievement Agenda Percentage of 40% 40% 40% 100% development of information in development of four languages i.e. Braille, SeSotho, information on how to English and isiZulu access funding from CoJ in four languages Library Information Services Number of youth 5 000 5 000 4 537 The African Literary Development involved in African Programme is held annually in March. Literary Development Three development programmes were Programme delivered: • Writing competition • Poetry/short story workshops • Intercultural dialogues The Joburg Literary Festival was completed: • Book discussion session • Storytelling Festival • Poetry Festival Establishment of African One in Region 1 1 The bookstore was launched in June Literature Bookshop E 2009 in Region E and is fully operational. The main objective of the bookstore is to popularise literature, programmes and writers that highlight information about Africa and South Africa in particular, in all 11 official languages Number of computer 42 media 42 31 media sites 640 learners were reached and 31 media literary/numeracy centres centre in all media works sites were established. All learners established in the City’s libraries centre who are ready to write exams registered public libraries in all with the IEB in the fourth quarter at their libraries local registered IEB centres Sport and Recreation Percentage of 50% 50% 50% Repairs and maintenance work of management and 31 identified flagship facilities were maintenance of sport completed through an additional facilities according to budget allocation of R21m. The norms and standards facilities include Art Galleries, Museums, policy Community Centres, Library facilities, Skills Centres, Informal fields and stadia. The Performance and Forensics team monitored the state of the facilities weekly

38 39 Indicator 2008/09 Annual Actual Annual Comments on Progress Delivery Target Achievement Agenda Percentage of 50% 50% 50% Tennis development: At Arthur Ashe, 113 professional competitive youth to partake during the ATP Soweto sport development 6 Open from 13-19 April 2009 in the Men’s tournament and 27 April to 3 May 2009 in the Ladies’ tournament

Golf Development: The development programme is taking place in all Regions. Contribution by the golfing fraternity i.e. golf clubs, Golf SA and coaches, has ensured that golf is accessible to more community members. Partnership with golf courses citywide has ensured that golf development takes place in all regions

Rugby Development: At Ennerdale sports complex Ext 9, with 23 participants at club level

Swimming Development: The swimming development programme has proved very successful, not only for Learn to Swim programmes, but also water safety and other water sport codes such as water polo, dragon boating, senior citizens aerobics, swimming tuition and swimming galas

Indigenous Games: These games are mainly presented and taught during school holidays as part of holiday programmes, which takes place at recreation centres in all regions. They include Dibeke, Jukskei, Morabaraba and Kgati

Equestrian Championships: The programme is predominant in Region D in Rockville. There are approximately 500 kids partaking in the programme. Regions B, C, E and F have also began to run ongoing development programmes

Basketball: Basketball is played across the city. Partnerships formed with schools and clubs to facilitate development programmes. The sport is popular in Inner City Region F, Soweto Region D and Alexandra Region E, but has spread to other areas in the city

6 Redefined to sport transformation programmes (Tennis, golf, indigenous games, rugby, swimming, equestrian and basketball development programmes)

38 39 Indicator 2008/09 Annual Actual Annual Comments on Progress Delivery Target Achievement Agenda Roaming recreation In Regions A, 3 Three vehicles Roaming recreation vehicles operate in vehicles rolled out E and G All regions all regions and provide developmental programmes according to schedule. The programmes, packaged with activities for children, are rolled out to schools, Recreation Streets and open spaces Arts, Culture and Heritage Percentage of 50% 50% 50% Strategy fully implemented at Alex development and Interpretation Centre and Sophiatown, Dr implementation of Xuma House heritage strategy for historically disadvantaged Partnerships with the private and public areas sectors will still be pursued for future projects

Number of youth 200 200 800 800 youths were identified and identified and are involved in art, fashion design, developed from talent photography and music identification through creative industries from historically disadvantaged communities7 Number of monuments One statue One 5 Three monuments were completed: commissioned for cultural of an icon Region F • Tribute to Bram Fischer at icons reflecting the new awarded (Three Braamfischerville Multi-purpose Hall democratic dispensation freedom monuments • Walter and Albertina Sisulu Artwork at of the city and Metro Link (Region F) two art • Statue of Kippie Moeketsi memorials) Two art memorials completed: • Memorial Wall to Artists in Newtown • Tribute to Mayor Jessie McPherson (the End Street Pedestal) Capital Projects and Sports and Recreation Number of informal Ten grassed 10 10 The development of ten informal sports sports fields grassed out and fenced public spaces into multi-purpose sport of 35 scoped with multi- facilities was completed in June 2009 purpose in Region D. They were designed to courts promote priority sporting codes besides soccer. Each facility is equipped with recreational volley ball and cricket codes facilities Number of recreation Region A 1 5 The following completed: streets completed in Naledi Ext 1 historically disadvantaged Jan Hofmeyer areas Lakeside Ext 1 Ivory Park Klipfonteinview

7 Arts, Fashion design, photography, music

40 41 Indicator 2008/09 Annual Actual Annual Comments on Progress Delivery Target Achievement Agenda Revamping and 100% 100% 100% The stadiums are complete and were completion of (Rand, construction handed over to FIFA Dobsonville and Orlando) phase stadiums Percentage development 70% 70% 0% The development of the Soweto Theatre of Soweto Theatre construction has not started due to lack of funding. Private funding is being solicited. However, designs, plans and public participation processes have all been finalised Theatre Support Number of youth 1 600 1 600 2 000 Exposing children and youth to theatre by and children from subsidising tickets to stage appropriate disadvantaged productions at RCT communities introduced to youth theatre productions by sponsoring tickets at RCT Number of productions 6 6 15 The following productions benefited staged perceptively disadvantaged communities: attracting an increase in • Le Grand Cirque new audiences • La Traviata – The Ballet • Hello and Goodbye • Janice Honeyman’s Pantomime Show • Piano Recital production – Terrence Marais • Gift from God – Kgosana Thekwana • Awaiting trial – Fiki Mhlambi and Velaphi Mthimkhulu • 600 Seconds – Sifiso Zimba • Basadi – Mosoeu Ketlele • Sins of a Man – Thapelo Motloung • Tasha on the Rocks – Mduduzi Mabaso • Jazz Weekend – featuring Ladies in Jazz • Seniors Concert • Under my Skin (HIV and Aids awareness concert) • Summer and Blues Jazz Festival • Opera Gala • Danny the Champion of the World • Basement Opening

40 41 Corporate and Shared Services The Corporate and Shared Services sector indicators are informed by the five-year IDP strategic objectives of building institutional and human capital in advancement of a World-class City.

Table 2.2: Corporate and Shared Service Sector Indicators and Five-Year Target

Indicator Five-Year Target (2006/11) Percentage improvement of contractual provisions (fleet) 10% Number of new public conveniences 20 Percentage compliance with OHASA building regulations by CoJ buildings 90% Percentage improvement in the HR climate survey rating 20% Percentage improvement of customers (line departments) satisfied with HR 20% service Percentage of implementation of Corporate and Shared Services delivery 100% model for core departments Percentage improvement in client satisfaction levels for administrative support 20% services

Table 2.2.1: Corporate and Shared Services Performance against Targets

Indicator 2008/09 Delivery Annual Target Actual Annual Comments on Progress Agenda Achievement Percentage of Identification, 37 key contract 37 (A 98.59% The total average compliance improvement monitoring and deliverables compliance percentage for the 2008/09 in compliance deviations report monitored rate has been contract year is 98.59% with contractual on 37 Key Contract achieved) provisions of Deliverables the Master Fleet Contract Number of new Built five new 5 5 The facilities are located at public conveniences public conveniences Ivory Park, Alexandra, Swazi Inn built accessible to people (Wynberg), Dube and Orlando. with disabilities Two other facilities were refurbished and a sixth new facility at Lenasia is currently in the final stages of completion Percentage Bi-annual 100% 100% A baseline audit was completed compliance with assessment of resolution of at all 17 corporate buildings and OHASA building all corporate life-threatening all life threatening deviations regulations buildings and 100% deviations noted have already been resolution of all rectified while other remaining life-threatening issues have been incorporated deviations in the maintenance programme of the Facility Management and Maintenance Unit Percentage of 100% 100% 80% All HR policies were revised and improvement in implementation of approved by Council and the customer satisfaction all revised Human department commenced with rating of Human Resources policies implementation Resources Services by line departments

42 43 Indicator 2008/09 Delivery Annual Target Actual Annual Comments on Progress Agenda Achievement Percentage 100% 100% 100% (FMMU Facility Management and implementation implementation – Phase1) Maintenance of Corporate and of Shared Services 100% (HR) The FMM reached all targets for Shared Services model for Human the implementation of Phase 1 Delivery model for Resources for the 2008/9 financial year core departments and Facility Management and Human Resources Shared Maintenance Services The HRSS centre is fully operational Percentage of 100% 100% 98% All phases have been concluded improvement in implementation of and the department is client satisfaction printing turnaround concluding the appointment of levels for strategy staff administrative support services Percentage of 100% 100% 100% Full implementation of the implementation WSP and complied with the of CoJ 2007/08 requirements of applicable skills workplace skills plan development legislation (WSP) Targeted training and development programmes that include: Skills Development Facilitation (SDF), Performance Management Training, Internships Programme, Learnership Programme, Leadership Programme, Organisational Training and Training Quality Management

Training Expenditure amounted to R30 291 297.24 The WSP and implementation report were submitted as required to the LG SETA Percentage 100% 100% 95% The CoJ EE plan was updated compliance in February 2009 and the to diversity Department of Labour (DoL) management report concluded and approved strategy final submission to the DoL as (employment required by the Act equity, disability management, as There are still challenges for well as gender achieving numerical targets as mainstreaming) the City has not yet stabilised after reorganisation

42 43 Economic Development The Economic Development sector indicators are informed by the five-year IDP strategic objectives of growing the economy, creating and sharing wealth, creating job opportunities, and reducing inconveniences and the cost of doing business.

Table 2.3: Economic Development Indicators and Five-Year Target

Indicator Five-Year Target (2006/11) Number of jobs created through the EPWP programme 120 000 Number of jobs created through the implementation of the Property Boom 4 000 share Strategy Percentage of the implementation of the SMME fund to support skills 50% (2nd economy) development and job creation Percentage of the reduction in the cost of doing business in the City 35% baseline to be established per category Percentage of the increase in the City’s spending to targeted companies 100% owned by specific categories of HDI (BEE, women, disabled, youth, among others) Rand Value of projects attracted into the Inner City through accelerated R15bn and expansion of the Urban Development Zone (UDZ) Tax Incentive Percentage of the implementation of the destination brand and marketing 100% strategy of Johannesburg

Table 2.3.1: Economic Development Performance against Targets

Indicator 2008/09 Annual Target Actual Comments on progress Delivery Agenda Annual Achievement Number of jobs created 30 000 40 000 47 899 Target achieved through the EPWP

Number of jobs 2 500 2 500 3 490 Target achieved created through the implementation of the Property Boomshare Strategy Percentage 100% 100% 90% Leveraging of resources proved implementation of the Operational operational problematic as country entered SMME fund to support recession, investors more risk skills development and 6 averse and funding approvals job creation Six SMMEs 0 and commitments put on hold. funded Roll out deferred to 2009/10 pending availability of resources Percentage of reduction 35% baseline to 35% 35% Bid awarded. Audit of City- in the cost of doing be established owned telecoms assets began business in the city per category that will determine the actual roll out plan for the City and project costs

44 45 Indicator 2008/09 Annual Target Actual Comments on progress Delivery Agenda Annual Achievement Percentage of the 75% 75% 56% by third Year-end data outstanding increase in the City’s quarter spending to specific targeted firms owned by specific categories of HDI (BEE, women, disabled and youth, among others)

Rand value of projects R2.5bn R2.5bn R7.1bn R0.7bn was attracted into the attracted into the city City, bringing the accumulated through accelerated and investment to R7.1bn expansion of the UDZ Tax incentives Percentage 100% 100% 100% Drafted the targeted investment implementation of the promotion strategy. Developed destination brand and and implemented the marketing marketing strategy of and brand strategy. Showcased Johannesburg the City and participated in various international and local road shows and exhibitions Number of new economic 5 5 5 By the nature of economic investments attracted to development these are massive development nodes in projects requiring huge previously disadvantaged investments. Period is normally areas three to five years: Land regularisation in Alex, Ivory park, Soweto, Orange Farm, Diepsloot. Investments of more than R5bn in Bruma, Jabulani, Randburg, Sandton. Majestic development and Site 6 in Newtown. Two Distribution Centres in Soweto and Vhembe for fresh produce. Economic development plans for regions G, and Soweto Percentage of occupancy 8 8 0 The Soweto Empowerment by businesses trading Zone (SEZ) application for the in the Soweto proclamation of the township is Empowerment Zone (SEZ) yet to be approved, and cannot by March 09 have legal occupants until then. The economic climate also affected investor appetite for new projects Number of SMMEs 20 20 More than 1 Through the Business Place, the created though the (Six for Jozi 000 artisans directorate assisted about 2 000 City’s business support Equity Fund established SMMEs a month to establish programmes 10% of RPL their businesses and artisans)

44 45 Environmental Management The Environment sector indicators are informed by the five-year IDP strategic objectives of ensuring sustainable development and environmental justice, and providing recreational facilities, such as parks, especially in previously disadvantaged areas of the South.

Table 2.4: Environment Sector Indicators and Five-Year Target

Indicator Five-Year Target (2006/11) Number of trees planted on sidewalks, in parks and in private 200 000 trees planted properties Percentage of reduction in waste disposal to landfill, and sorting at 15% reduction of waste to landfill source in the city (based on the 2006 baseline) Percentage of reduction in air pollution levels 5% reduction based on 2005 baselines Percentage of improvement in integrity of water courses and river 10km of water courses rehabilitated health 10% improvement in river health Number of water bodies rehabilitated for ecological and recreational Two water bodies purposes Five wetlands Number of wetlands rehabilitated for aquatic habitats and 5% of the City’s total area by 2011 watercourse Percentage of increase in the total land area proclaimed as conserved 2% reduction area Percentage of reduction in greenhouse gas emissions through flagship Five flagship projects projects Percentage of compliance of CoJ (capital) projects to the EIA 100% compliance regulations Percentage of compliance of key CoJ (capital) projects to EIA specific 100% compliance conditions

Table 2.4.1: Environmental Management Performance against Target

Indicator 2008/09 Delivery Agenda Annual Target Actual Annual Comments on Achievement Progress Number of trees planted 50 000 trees in Soweto, 50 000 60 129 The target was on sidewalks, in parks and Alexandra and Orange reduced from private properties Farm 62 000 to 50 000, the annual revised target was achieved Percentage of reduction in Four new waste buy back Four buyback 4 Target achieved waste disposal to landfill centres (Alex, Cosmo centres and sorting at source in the City, Inner City and City Region D and G) Tons (recyclable materials) 20 tons 4 850.2 tons Target achieved collected at major events Percentage of reduction in 7 000 households 7 000 3 500 by quarter Accumulated air pollution levels targeted for Basa njengo four alone data for the Magogo programme whole year outstanding

46 47 Indicator 2008/09 Delivery Agenda Annual Target Actual Annual Comments on Achievement Progress Percentage of improvement 100% completion of 100% 100% Target in integrity of water courses rehabilitation of upper completion achieved, with and in river health Jukskei River construction and site handover completed 100km of river cleaned/ 100km 246km Target achieved rehabilitated and maintained Five hotspots: Five hotspots Seven areas Target achieved Interventions to improve water quality Number of water bodies Two water bodies 2 Only 40% Target not rehabilitated/improved for (Bruma and Zoo Lake) rehabilitated achieved due to ecological and recreational rehabilitated lack of funding purposes (CAPEX) for the rehabilitation of water bodies. Bruma Lake rehabilitation plan underway Number of wetlands Four wetlands 4 6 Target achieved rehabilitated for aquatic (Vorna Valley, Mapetla, habitats and watercourse Baileyspruit, Mofolo Park) Percentage of increase Ten areas rezoned and 10 - Project deferred in the total land area protected to 2009/10 proclaimed as conserved due to funding area constraints 500ha cleared of alien 500ha 2 218ha Target achieved vegetation (Roodepooort and Jukskei areas) Percentage of reduction in Two flagship projects 2 3 – BRT baseline Target achieved greenhouse gas emissions (BRT, retrofitting of assessment through flagship projects municipal buildings and study, Cosmo solar water heaters) City solar water heaters, energy efficiency in schools Percentage compliance of 80% compliance 80% 90% Target achieved City’s (capital) projects to the EIA regulations Percentage compliance of 90% compliance 90% 81% Target not strategic projects to EIA achieved. Non- specific conditions conformances are being addressed

46 47 Financial Sustainability The Financial Sustainability sector indicators are informed by the five-year IDP strategic objective of ensuring sustainability, accountability, and responsiveness to needs of the City and supported communities.

Table 2.5: Financial Sustainability Sector Indicators and Five-Year Target

Indicator Five-Year Target (2006/11) Achievement and maintenance of clean audit with matters of emphasis Unqualified audit report Rand value generated from the restructuring of the debtors book – sale of the R1.8bn debtors book8 Average percentage of citywide capital spending to be funded through public- Average of 10% private partnership Percentage of affirmative procurement (BEE) of total procurement value 75% Percentage of customer satisfaction of billing, collection and call centre service9 80% Ratio of group cost coverage Between 30 and 35 days Ratio of group debt coverage 13:1 Percentage of implementation of rates policy and valuations 100% Percentage of collection ratios10 95% Percentage of active customers receiving accurate bills for rates and refuse 99% Percentage of collection against customers receiving bills 95% AA Long-term domestic credit rating improvement to at least AA rating Percentage of clearance certificates and refunds issued within 30 days of 100% application Call answer at Joburg Connect 90% of calls answered within 40 seconds

Table 2.5.1: Financial Sustainability performance against target

Indicator 2008/09 Annual Target Actual Annual Comments on Progress Delivery Agenda Achievement Achievement and Unqualified Unqualified Only measurable Only measurable at year maintenance of clean audit audit report audit report at year-end on end on completion of with matters of emphasis completion of the the audit audit Rand value generated R1.8bn R1.8bn Latest City data The debtors’ book to from the restructuring of provided and be quantified and final debtors book – sale of the bidder approved agreement signed debtors book by 31 July 2009. The Rand value generated will be determined during 2009/10 due to complexities in the negotiations towards the final agreement Ratio of group cost 30-35 days 30 days 16.09 days Progressing beyond coverage planned target Ratio of group debt 13:1 13.1 times 20.23 times Progressing within coverage planned target

8. Phase 1: Submission of indicative offers by bidders, finalise legal documents, evaluate indicative offers, and inform bidders who will be invited to the data room. Data room opened, data room closed. 9. Phase 2: Receive revised offers, shortlist bidders, EAC approval of short listed bidders, supplementary due diligence process & short listed bidders to submit final and (mark up of legal agreements) Bidding offers, negotiate and conclude transaction documents. 10. Phase 3: Approval of preferred bidders by EAC, financial closure: Signing ceremony, funds flow

48 49 Indicator 2008/09 Annual Target Actual Annual Comments on Progress Delivery Agenda Achievement Percentage of Effectively 100% 100% of content Deviation request implementation of rates monitor the exceptions on delivery agenda policy and valuations Venus and SAP identified were approved during the systems to align resolved. Venus third quarter. with the new enhancements Further enhancements rates policy implemented as were made to the system and manage and when issues during the third quarter application for are identified rebates Percentage collection ratios 91% 91% 85% Target not achieved Percentage Active 95% 95% 98% Target exceeded Customer receiving accurate bills for rates and refuse Long term domestic credit AA Maintain at Rating maintained The Fitch rating on rating improvement to at A+ at AA- national long-term rating least AA rating was upgraded from A+ to AA- and the national short-term rating to ‘F1+ (zaf)’ from ‘F1 (zaf)’. The rating outlook remains stable Percentage clearance 65% between 65% 96.7% Target exceeded with certificates and refunds 30 – 35 days only less than 4% issued within 30 days of refunds issued later than application targeted standard time Percentage spent on the 95% 95% 91% The effects of the City’s capital budget economic downturn required the City to exercise caution in spending Call answer at Joburg 100% 100% All calls answered All calls answered within Connect within targeted targeted standard standard

Governance and Legislature Governance sector indicators are informed by the five-year IDP strategic objective of ensuring participatory democracy, accountability, and responsiveness to the needs of communities.

Table 2.6: Governance Sector Indicators and Five-Year Target

Indicator Five-Year Target (2006/11) Satisfaction ratings for effectiveness of CoJ communication 65% (for households and business) CoJ Household Satisfaction Index (HSI) 70% CoJ Business Satisfaction Index (BSI) 70% Percentage of households that believe corruption is being 15% for households and 10% for business addressed satisfactorily Percentage of effective functioning Ward Committees 100% Number of community ward plans developed 109 ward plans

48 49 Table 2.6.1: Governance and Legislature Performance against Target

Indicator 2008/09 Delivery Annual Target Actual Annual Comments on Progress Agenda Achievement

Satisfaction ratings for 6 6 6.76 According to the final 2009 the effectiveness of Customer Satisfaction CoJ communication Survey, the effectiveness satisfaction ratings exceeded the target by 0.76% CoJ HSI 65% 65% 69% According to the 2009 Customer Satisfaction Survey, the household satisfaction index exceeded the target by 4% CoJ BSI 66% 66% 68% According to the 2009 Customer Satisfaction Survey, the business satisfaction index exceeded the target by 2% Percentage of 15% 15% 3.10% According to the 2009 households that Customer Satisfaction believe corruption Survey – 3.10% represent is being addressed the views of those satisfactorily respondents (23.6%) who said that they are aware of corruption Percentage of effective 90% (of the 109 90% (of the 97% (106 Ward 106 of the 109 wards were functioning Ward wards) 109 wards) Committees functional Committees functioning) Number of community 109 community 109 community 105 community The plans of four wards, ward plans developed ward plans ward plans ward plans were namely, 40, 85, 97 and 104, developed incorporated were not included in the into the 2009/10 IDP, as they had 2009/10 IDP not been submitted at the time of compilation

Percentage of Improvement in Improvement in Business and Business and household improvement in customer care customer care household satisfaction indices have customer care Index rating rating satisfaction improved by 2% and 3% indices have respectively improved by 2% and 3% respectively Number of MoUs Two MoUs signed Draft MoU with 0 Continuous engagement signed in twinning in twinning the second with the West Rand District arrangements arrangements rural and Municipality between the City and between the municipality rural municipalities City and rural in Gauteng / municipalities Signing of two MoUs

50 51 Health The Health sector indicators are informed by the five-year IDP strategic objectives of providing universal access to health care facilities, as well implementing the HIV and Aids awareness and support.

Table 2.7: Health Sector Indicators and Five-Year Targets

Indicator Five-Year Target (2006/11) Percentage of increase of the cure rate of new smear positive tuberculosis 7% patients (from 69% to 76%) Percentage of implementation of the environmental health pollution prevention 100% programmes (air – diesel emissions testing and imbawula promotion; water – water sampling; and land – illegal dumping; signage and by-law enforcement and education) Percentage of increase in immunisation coverage of children under the age of 10% one year (from 80% to 90%) Number of new antiretroviral (ART) sites in the city From three to five sites Percentage of access to comprehensive HIV and Aids care and support 100% programmes and community-based care per region

Table 2.7.1: Health Sector Performance against Targets

Indicator 2008/09 Delivery Annual Actual Annual Comments on Progress / Agenda Target Achievement Variance Percentage of Increase 74% of new smear 74% 76.7% Target achieved with the in the cure rate of positive patients cured (9% (9.7% increase) annual New Smear Positive New Smear Positive (9% increase) increase) Cure Rate at 76.7% (9.7% tuberculosis patients increase) (from 67 to 76%) Percentage of 50 households in 50 40 The annual target was not implementation of the informal settlements achieved as only 40 imbawulas environmental health /informal food were secured and their rollout pollution prevention traders provided with /distribution planned for the programmes (air smokeless imbawulas 2009/10 financial year – diesel emissions testing and imbawula promotion; water – 7 415 diesel vehicles 7 415 7 367 in Year-end accumulated data water sampling; and tested quarter 4 alone outstanding land – illegal dumping signage and by-law 95% compliance to 95% 100% Achieved and exceeded annual enforcement and sampling protocol/ target education) programmes for the City – water quality Percentage of increase 90% (full) 90% 89.6% (9.6% Immunisation coverage for the in immunisation immunisation (10% increase) year was 89.6%, indicating coverage of children coverage of children increase) a slightly less than targeted under one year (from under one year (10% increase of 10% 80% to 90%) increase) The service disruptions in April and May 2009 negatively impacted on the coverage

50 51 Indicator 2008/09 Delivery Annual Actual Annual Comments on Progress / Agenda Target Achievement Variance Number of new One new anti-retroviral 1 2 (Malvern Target achieved as the site antiretroviral (ART) (ART) site established in and was accredited on 25 June sites in the city the city Zandspruit) 2009 and will issue ARVs from 1 September 2009 Percentage of 50 households in 50 40 The annual target was implementation of the informal settlements not achieved as only 40 environmental health /informal food imbawulas were secured pollution prevention traders provided with and their rollout/ distribution programmes (air smokeless imbawulas planned for the 2009/10 – diesel emissions financial year testing and imbawula promotion; water – 7 415 diesel vehicles 7 415 7 367 in Year-end accumulated data water sampling; and tested quarter four outstanding land – illegal dumping alone signage and by-law 95% compliance to 95% 100% Achieved and exceeded enforcement and sampling protocol/ annual target education) programmes for the City – water quality Percentage of increase 90% (full) immunisation 90% 89.6% (9.6% Immunisation coverage in immunisation coverage of children (10% increase) for the year was 89.6%, coverage of children under one year (10% increase) indicating a slightly less than under one year (from increase) targeted increase of 10% 80% to 90%) The service disruptions in April and May 2009 negatively impacted on the coverage Number of new One new anti-retroviral 1 2 (Malvern Target achieved as the site antiretroviral (ART) (ART) site established in and was accredited on 25 June sites in the city the city Zandspruit) 2009 and will issue ARVs from 1 September 2009

Housing The Housing sector indicators are informed by the five-year IDP strategic target of delivering 100 000 units, as well as affordable housing opportunities, through leveraging private sector investment in line with the Breaking New Ground principles.

Table 2.8: Housing Sector Indicators and Five-Year Targets

Indicator Five-Year Target (2006/11) Number of mixed-income housing units 50 000 units Number of housing units through the Community Builder Programme and 30 000 units People’s Housing Process Number of rental housing units 15 000 units Number of hostel upgrading programmes 5 000 units

52 53 Table 2.8.1: Housing Sector performance against targets

Indicator 2008/09 Annual Actual annual Comments on progress Delivery Target Achievement Agenda Number of mixed income 10 000 5 000 6 236 Departmental target achieved housing units Number of settlements 50 50 0 Departmental target for 2008/09 formalised was not achieved

Number of rental housing 3 500 3 500 6 286 Departmental target achieved units Number of housing units 7 000 7 000 8 614 Departmental target achieved through Community Builder Programme and People’s Housing Process Number of hostel units 1 500 1 500 842 Target not achieved. Units upgraded were upgraded in Soweto but completion certificates could not be issued because there were outstanding electrification issues

Infrastructure and Services The Infrastructure and Services sector indicators are informed by the five-year IDP strategic objective of providing universal access to essential services in line with the national and provincial targets, as well as the Millennium Development Goals.

Table 2.9: Infrastructure and Services Indicators and Five-Year Targets

Indicator Five-Year Target (2006/11) Percentage of coverage of basic level of water and sanitation Water 100% Sanitation 100% service to all households Percentage of service connections of electricity to all formalised 95% by 2011 households Percentage of provision of street lighting to all formal and 95% proclaimed informal settlements Percentage of provision of street lighting in high crime areas, in 60% formal and informal settlements Percentage of reduction in electricity usage 10% Percentage of reduction of electricity outages (bulk, medium and 30% by 2010 low voltage) Percentage of reduction of electricity losses From 3% to 1% (non-technical losses) Percentage of improvement of cleanliness levels in the Inner City Inner City Regeneration Charter Plan 100% Percentage of reduction of unaccounted for water 25% (physical and commercial losses) Percentage of reduction of waste to landfill sites 15% Percentage of collection of waste in all areas (formal and non- 100% formal areas) once a week

52 53 Table 2.9.1: Infrastructure Services performance against targets

Indicator 2008/09 Annual Actual Comments on Progress / Variance Delivery Target Annual Agenda Achievement Percentage coverage 90% 90% Water: 169% Annual target is based on the Ward of water and (Additional (Additional Councillor s’ requests for the services sanitation services 2 825 4 782 (LoS1) households) households) Water: An additional 2 105 households were provided with access to basic water during the fourth quarter, bringing the year-to-date achievement to 4 782 households against a target of 2 825, which represent 169% Sanitation: Sanitation: Annual target is based on the Ward 6 010 7 283 Councillors’ requests for the services

Sanitation: 1 044 households were provided with access to basic sanitation in the fourth quarter, increasing the year-to-date achievement to 7 283 households against the annual target of 6 010, representing 121%. Access was provided to additional sites not originally in the plan Percentage of 5 000 5 000 5 029 748 households were connected during coverage and/ households households households the last quarter, which brought the year- or number of to-date connections to 5 029 households service connection11 against a target of 5 000 of electricity to all formalised households Percentage coverage 90% 90% 80% Due to limited funding and an increase in of street lighting to theft and vandalism of infrastructure, the targeted 12 formal proportion of lights working in targeted and proclaimed areas was 80% informal settlements including high crime areas Percentage of 10% 10% 5% Although the City is implementing reduction in several Demand-Side Management electricity usage initiatives, inadequate funding for certain key projects hindered achievement of the set target.

11. Service connection completed before or after the construction of housing structure 12. Targeted areas based on approved budget

54 55 Indicator 2008/09 Annual Actual Comments on Progress / Variance Delivery Target Annual Agenda Achievement

Percentage of 104-90 Bulk: 77 Bulk: 71 There were 71 high voltage outages reduction and/or reduction Outages against 77 expected interruptions. The number of electricity of network achievement on this KPI is largely due to outages (bulk, related bulk continual upgrading, reinforcement of medium and low outages the network and planned maintenance, voltage) which constitute the bulk of capital expenditure on electricity Medium: Medium: Medium: 844 219 medium outages were recorded 950 950 against a target of 238 expected. The Outages Outages year-to-date total is 844 outages against an annual target of 950. The main contributing factors to the achievement of this target are continual network reinforcement, replacement of old distributors and metering Percentage of Electricity: 12% 14.33% The total losses for the quarter were electricity and water 10-12% 13.95% and the performance brought losses the year to date average to a high of 14.33%, thus 2.33% above the 12% target. This is attributed mainly to illegal connections. City Power is implementing various measures to address the challenge Water: 27- 27-28% 36.15% The total water losses for the fourth 28% quarter were 22.5%, resulting in an annual loss of 36.15%. The water losses remain a major challenge for the City. The suspension of Operation Gcin’amanzi has impacted negatively on reducing water losses Percentage of 90% Level 5 Level 4 Level 4 cleanliness, in four quadrants of improvement of (Level 5) the Inner City, was maintained through cleanliness levels13 contacts to output-based service in the Inner City providers and introduction of nightshift street cleaning services. Routine inspections are also conducted to assess the effectiveness of the cleaning services rendered and to identify areas requiring remedial action

Challenges such as indiscriminate littering by businesses and informal street traders, and inadequate street cleaning and waste collection as a result of the upgrading of BRT routes were experienced

13. Based on prescribed Service Level Agreements

54 55 Indicator 2008/09 Annual Actual Comments on Progress / Variance Delivery Target Annual Agenda Achievement Percentage of 5% 5% 17.7% 129 779 tons of waste were diverted reduction of waste to away from landfills, translating to a landfill site 17.7% waste reduction. This high performance level can be attributed to the Demand-Side Management programme Percentage of Daily waste 65 targeted 85 The daily waste service was extended to collection of waste in service to settlements an additional 24 targeted settlements, all areas (formal and cover 65 bringing the total to 85 against an non-formal areas) targeted annual target of 65 settlements Percentage of 20% - - In July 2008, the City presented a progress in proposal to implement the creation of establishment of RED 4 using a progress approach starting RED 4 off with City Power as a base. EDI Holdings has not formally communicated its response to the CoJ approach

Although the City continues to participate in various forums convened by EDI, it is unclear how long it will take for EDI to finalise legislative imperatives. Finalisation of due diligence and the Section 78 process is beyond the department’s control

Establishment will be reconsidered in the next financial year, 2009/10

Public Safety The Public Safety sector indicators are informed by the five-year IDP strategic objectives of building a city where life, property and lifestyles are safe and secure so that residents and businesses can live and operate free from crime, threats to public safety, personal emergencies and disasters.

Table 2.10: Public Safety Sector Indicators and Five-Year Targets

Indicator Five-Year Target (2006/11) Number of Metro Police Officers employed by 2010 4 000 Percentage of development and implementation of a safety and security 100% readiness plan for the 2010 FIFA World Cup Reduce incidents of crime across the city 7%-10% reduction Average time taken to respond to incidents of crime in areas covered by 10 minutes CCTV (Inner City) Percentage of the city covered by CCTV (CCTV footprint) 100% of the Inner City Reduction in the perception of corruption 100% Improved turnaround times for vehicle licensing transactions 30 minutes Number of by-law cases prosecuted 40 000 Average time taken to respond to serious road accidents across the city 15 minutes Percentage of reduction in the number of annual road fatalities 30% Improved response times of priority areas (fire and rescue calls) Seven minutes Percentage of implementation of the Disaster Management Plan 100% implementation before 2010

56 57 Table 2.10.1: Public Safety Infrastructure Services Delivery Breakdown

Indicator 2008/09 Delivery Annual Actual Comments on Progress Agenda Target Annual Achievement Number of Metro 1 000 900 473 Due to financial constraints, the police officers appointment of an additional 500 Metro employed police officers was put on hold Percentage of 100% 100% 100% Master plans have been developed and implementation implementation simulations conducted of the CoJ safety of annual and security operational plan operational plan for the 2010 FIFA World Cup Reduce incidences 7-10% reduction 7-10% 1.28% Crime is still a challenge as in the past of crime across the increase financial year an increase of 1.28% has city been recorded. Nevertheless, a total of 9 094 arrests for criminal activity were effected through strategic roadblocks, roadside checkpoints and other pro- active crime prevention measures Number of CCTV 216 CCTV 216 216 Target achieved cameras installed cameras in the Inner City and surrounding areas (CCTV footprint) Reduction in 10% 10% The Citizen satisfaction survey shows an perception of average of about 24% public awareness corruption on corruption in the City. A proportion (3.1%) of them believes that corruption is being addressed satisfactorily. The CoJ has mechanisms that reside with corporate services to deal with corruption Average turn- 15 minutes 15 12 minutes Achieved around time for minutes vehicle license renewals (with renewal notice) Average turn- 30 minutes 30 23 minutes Achieved around time for minutes vehicle registration Average turn- 22 minutes 22 23 minutes Target missed by one minute. around time for minutes Department will strive to improve and vehicle license operate within target renewals (without renewal notice) Number of by-law 20 000 20 000 16068 Target was not reached cases prosecuted

56 57 Indicator 2008/09 Delivery Annual Actual Comments on Progress Agenda Target Annual Achievement Average time 12 minutes to PI 10 Response Response time reports are delayed due taken to respond calls minutes time reports to systemic problems experienced at the to serious road are delayed JMPD/EMS control room. The matter is accidents across due to being addressed the city systemic problems experienced at the JMPD/ EMS control room. The matter is being addressed Percentage of 17% 17% 22% The reduction is attributed to increased reduction in the roadblocks and the establishment of number of annual the Nomakanjani Operation, which road fatalities resulted in 2 500 arrests for reckless and negligent driving

Spatial Form and Urban Management The Spatial Form and Urban Management sector indicators are informed by the City’s five-year IDP strategic objectives of restructuring and re-engineering of the current distorted urban form. It also guides the City’s key programmes and capital investment initiatives to support economic growth potential.

Table 2.11: Spatial Form and Urban Management Sector Indicators and Five-Year Targets

Indicator Five-Year Target (2006/11) Percentage of building plans approved within 24 hours 80% Percentage of implementation of a block-by-block operational 100% plan in nine priority areas according to region Percentage of implementation of the new approach to regularise 100% informal settlements Percentage of new development and capital investment focused 50% of all private investment and 60% in the short- and medium-term priority areas of the City, defined of all public investment in the city to be by the Growth Management Strategy (GMS) targeted at key growth nodes and focus areas identified by the GMS Finalisation and full implementation of a consolidated town- Three-yearly updates planning scheme Maintenance of the aerial photography for the city using new (2006/2009/2011) technologies such as pictometry, which enables 3D viewing and measurement Percentage of implementation of the Inner City Regeneration 100% Charter

58 59 Table 2.11.1: Spatial Form and Urban Management Sector Performance against Targets

Indicator 2008/09 Annual Actual Comments on Progress Delivery Target Annual Agenda Achievement Percentage 60%14 60% 60% Target achieved building plans approved within 28 days Percentage of 80% (Number 80% 50% 25 Operational Plans were submitted implementation of blocks for Regions A-G (excluding Region F). of a block-by- complete by Implementation is anticipated at 90% but block operational June 2009) will be verified by internal auditing plan in 9 priority are according to region Percentage of 23 settlements15 23 18 The general clause amendment, which implementation of added a definition for ‘Transitional a new approach to Residential Settlement Area’, was regularise informal promulgated in the applicable Town settlements. Planning Schemes. The Department began (Number of feasibility studies to inform layout plans for settlements for those settlements on publicly owned land regularisation) that can be upgraded in situ. Some regions started with communication sessions to inform Ward Councillors and interested and affected parties of the programme. 18 settlements are located on publicly owned land, and therefore can be regularised and upgraded immediately. Negotiations with five private landowners are still underway Percentage of new 5% of private 5% of 70% (public This indicator should be measured development and investment private investment) annually. A target of 100% is not capital investment and 10% investment desirable, as the City has obligations to that is focused of public and 10% maintain other areas as well. in the short-and investment of public The capital investment is about the capital medium-term investment budget that is approved annually priority areas of the City as defined by the Growth Management Strategy

14. Complete building plan applications are approved within 24 hours. 15. This number was confirmed only at the end of the second quarter after all available information from both CoJ and Provincial Housing was reviewed and verified.

58 59 Indicator 2008/09 Annual Actual Comments on Progress Delivery Target Annual Agenda Achievement Finalisation Finalisation 100% 10% Council approved the consolidated and full of draft scheme clauses (Part A), which had to implementation amendment be scaled down to proceed by the 1986 of a consolidated scheme and Ordinance, as Province has produced town planning advertisement a further draft Gauteng Planning and scheme Development Bill to replace the existing Gauteng Planning Act, thereby creating a legal vacuum. The scheme clauses have now been adjusted to a consolidation of all the relevant schemes, which has the benefit of a standardised and uniform set of rules that will be applicable in the City but is not entirely the modern scheme that was initially intended. Consolidation of the Town Planning Scheme will be promulgated in 2009/10 Maintenance Year three 40% 40% Target achieved of the aerial (2009) aerial photography of photography the city using new update technologies such as pictometry, which enables 3D viewing and measurement Percentage of 100% 100% About 65% Capital expenditure is at 90%. implementation The actual percentage of implementation of the Inner City of commitments will be verified after Regeneration completion of the audit the end of August Charter 2009 Percentage of 80-95% 80-95% R50 348 000 Target achieved implementation of ARP (Amount spent)

Transport The Transport sector indicators are informed by the City’s five-year strategic objectives of creating a City with a safe and efficient transport system, with a public transport focus, and a well-developed and well-maintained road and stormwater infrastructure. With such Transport culture in place the City will connect businesses, people and places in a sustainable and cost-effective manner, thereby enhancing, the standard of living and quality of life for all inhabitants, the overall competitiveness and growth of the local economy.

60 61 Table 2.12: Transport Sector Indicators and Five-Year Target

Indicator Five-Year Target (2006/11) Kilometres of Rea Vaya BRT implemented 140 km Percentage increase in the number of people travelling by public 15% a year transport Percentage of occupancy to Metrobuses 55% of total capacity Percentage improvement levels of Metrobus services to users 80% Percentage implementation of the 2010 Transport Plan to meet 100% all 2010 FIFA World Cup Bid-Book commitments Kilometres of gravel roads surfaced in townships 250 km Reduction in traffic signal outages Less than 1% of all signals out on any given day 16 Fatalities per 10 000 registered vehicles 5

Table 2.12.1: Transport Performance against Targets

Indicator 2008/09 Annual Actual Annual Comments on Progress / Variance Delivery Target Achievement Agenda Kilometres of Rea Vaya 25km 25km 15 km Construction is continuing and is at BRT implemented various stages of completion of Phases 1A and 1B. Construction contracts for 1A should be completed in readiness for commencement of BRT operation of Phase 1A, and work will continue towards phase 1B for 2010 Percentage of increase 15% 15% 14.4% The percentage of passengers on or number of people non-BRT routes improved by 14.4% in travelling by public comparison to last year transport16 Percentage of 55% of total 43.5% 65.27% This represents the average number occupancy to Metros capacity of seats occupied. Some buses are buses full and others fairly empty. Metrobus continue to provide a service on some routes even though they may be uneconomical to run. The last quarter of the year had a decline in occupancy due to industrial action Percentage 80% 80% - Metrobus postponed the customer improvement levels of survey to the 2009/10 financial year Metrobus services to due to industrial action users17 (Satisfaction levels of Metrobus service users)

16. To be measured through BRT operating contract statistics 17. Service satisfaction in annual survey

60 61 Indicator 2008/09 Annual Actual Annual Comments on Progress / Variance Delivery Target Achievement Agenda Percentage of 100% 100% Operational Plan The 2010 Transport Operational Plan implementation of the 100% complete phase 1 and 2 is 100% complete. 2010 Transport Plan but needs Focus shifted slightly from the 2010 to meet all 2010 FIFA implementation FIFA World Cup to the implementation World Cup bid-book of the FIFA Confederations Cup 2009, commitments18 which was considered a test for the 2010 FIFA World Cup. Achievements of the FIFA Confederations Cup 2009 included park and ride facilities that transported on average 20 000 spectators a match to Ellis Park, signage audit, taxi industry negotiations, development of communications strategy upgrade of match and training venues, and simulation exercises. For 2010, the Ellis Park precinct projects including the new public transport hub is complete. The Nasrec precinct upgrade is 80% complete Kilometres of gravel 250 km over 23.3 km 16.74km Challenges cited to achieving this roads surfaced in 5 years target include escalated costs due townships (23.3 km for to unexpectedly high inflation, bad the year) ground conditions, and procurement delays in appointing consultants Number of signalised 300 traffic 300 300 Target achieved intersections converted signals to be to uninterruptible converted power system (UPS) onto alternative power source

Fatalities per 10 000 Five fatalities Five 5 Pedestrian safety education has been registered vehicles fatalities done at 144 schools in Johannesburg’s seven regions. 15 awareness campaigns for adults have been conducted Special Projects The Special projects indicators include some of the flagship projects that the City will pursue over the medium term towards achieving the principles of the Growth and Development Strategy.

18 e.g. park and ride facilities, precincts around stadia, public transport facilities at Ellis Park and Nasrec etc

62 63 Table 2.13: Special Projects performance against targets

Indicator 2008/09 Annual Actual Comments on progress Delivery Target Annual Agenda Achievement Percentage of 100% 100% 100% The integrated operational plans were implemented readiness for fully during the FCC with debriefing meetings held City to host FIFA every day after a match Confederation Tickets: received from the Provincial Department of Cup 2009 Sports Arts and Culture and FIFA for dissemination to the community, officials and Councillors

Training venues: Orlando and Rand stadiums used by Bafana Bafana for training

Joint Command Centre: used as the Joint Operations Centre by the City’s Disaster Management Unit. It assisted in facilitating stakeholder representation for co-ordination during match days at the Ellis Park stadium and other venues. Various stakeholders from the City were represented to ensure a world-class incident free event

Test runs/simulations: Several events were used as simulation exercises

Budgetary constraints and cash flow remain challenges to meeting certain deliverables

62 63 Indicator 2008/09 Annual Actual Comments on progress Delivery Target Annual Agenda Achievement Percentage of 100% 100% 100% Ellis Park, Dobsonville, Rand and Orlando stadiums implementation and precincts have been completed. Construction of the 2010 at Soccer City Stadium is on schedule to complete commitments to by December 2009, although there are funding meet all 2010 challenges. Implementation at the Ruimsig precinct is FIFA World due to commence in the 09/10 financial year Cup bid-book Phase 1A of the BRT was not ready for commitments implementation for the FCC but will commence operations in September 2009

IBC Accommodation project and Hotel: Construction commenced in May 2009. Although this was one month behind schedule, additional teams would be deployed to ensure completion by March 2010

A funding agreement has been signed with the DOC, which also addresses the legacy usage of the infrastructure being laid out in preparation for hosting an IBC at the JEC. The JEC continued negotiations with financial institutions and hotel groups for the funding of the hotel development. There is a likelihood that the development may not be complete by the 2010 FIFA World Cup, as there was still no agreement reached by May 2009

Work on the Sentech satellite farm is ongoing with Sentech having applied for the alienation of the land for the location of the farm in the Nasrec Precinct

Marketing: Presented progress on FCC preparations at the Tourism Indaba in Durban

As part of the marketing of the FCC, flags of the competing countries and 1300 branding advertisements were hoisted along all the protocol routes and around the Precincts

120 Host City Posters were distributed to South African missions abroad, with the assistance of the then Department of Foreign Affairs

Participated in the ‘my-schools programme’ hosted by the Department of Education and LOC

The Executive Mayor hosted an FCC Mayoral Dinner attended by the FIFA, LOC Executive and Soccer Legends

64 65 Indicator 2008/09 Annual Actual Comments on progress Delivery Target Annual Agenda Achievement Percentage 100% 100% 100% completion of the Mayoral Legacy Projects Grassing Of The City Ten fields Six cricket and volley ball fields: Soccer Sport committed developed • Tladi 1 873 Fields: to the during • Phiri 138 The City development 2008/09 • Moletsane 1 804 committed of 35 fields • Zola 6 345 to the during the • Emdeni 5 452 development current • Umthombowolwazi 453 of 35 fields political term Three cricket and rugby fields: during the as stated in • Jabulani 2 229 current the IDP • Pimville 138 political term • Meadowlands 19 331 as stated in One baseball and rugby field: the IDP • Mapetla 2 185 Street Public Art Project fully Full implementation of the Public Art Works project Furniture in in Hillbrow implemented has been achieved in Hillbrow, Berea and Yeoville the Inner City: and Berea Public Art Extension in Hillbrow and Berea Extension Diepkloof Redevelop 136 units 136 units were nearing completion. Water and sewer Hostel: Diepkloof near connections are in progress Redevelop hostels into completion There were challenges such as: Diepkloof family 1 000 • Inadequate space and land hostels into units • Delays in supplier terms of reference from the family 1000 then provincial Department of Housing units Klipsprut Mofolo Park 100% Nursery area: 100% Valley Development complete Skate Park 100% Regeneration: Perimeter inside the wall: 100% Mofolo Park Soccer area: 100% Development Irrigation system: 100%

64 65 Indicator 2008/09 Annual Actual Comments on progress Delivery Target Annual Agenda Achievement Development Development 100% Earthworks of Orlando of Orlando complete Planting Dube Node Dube Node Hard landscaping

Play area and sport facilities

Park furniture

Park buildings and construction

Irrigation Develop Develop Although Although MIG funding was approved, the project of indoor indoor MIG was put on hold due to budgetary constraints swimming swimming funding was pool pool approved, the project was put on hold due to budgetary constraints Development Development Project on Construction was planned to have started in the third of the Soweto of the hold due to quarter but no progress to date due to the City’s Theatre Soweto budgetary budgetary constrains Theatre constraints

Percentage of 80-95% 100% 100% Agreement signed between the City and LOC for implementation the building of one of the 20 Centres of Hope in of the ARP Alexander

Transport operational plan finalised and the finalisation of the precinct plan to address challenges around the FFH precincts is underway

The upgrade of Thusong House and relocation of informal structures is underway

66 67 2.5 Municipal Infrastructure Grant and Other Grants The City’s expenditure patterns on the capital infrastructure and other grants from National and Provincial Government during the 2008/09 financial year can be summarised as follows:

Table 2.14: Municipal Infrastructure Grant and other Grants

2005/06 Financial Year 2007/08 Financial Year 2008/09 Financial Year Conditional Available Spent Percent Available Spent Percent Available Spent Percent Grants Spent Spent Spent Equitable share 524 761 524 100% 2 252 2 252 100% 2 579 342 2 579 100% 761 848 848 342 Local 8 817 2 803 32% 6 514 4 323 66% 2 691 938 35% Government Financial Management Municipal 346 215 312 90% 267 733 212 79% 459 505 240 52% Infrastructure 613 643 043 Municipal 4 000 960 24% 7 040 1 401 20% 26 080 1 357 5% Systems Improvement 2010 FIFA World 101 476 101 100% 494 882 417 84% 1 139 931 1 138 100% Cup Stadiums 476 306 060 Development Gautrain 6 514 6 514 100% 2 000 905 45% Provincial 224 599 93 317 42% 644 053 234 36% 1 241 912 553 45% Capital projects 782 391 Provincial 3 790 719 19% 9 397 3 498 37% 8 588 6 334 74% Operating Projects Provincial 91 540 91 540 100% 88 912 88 912 100% 151 409 151 100% Housing top 409 structure Provincial Health 43 787 43 787 100% 50 888 50 888 100% 50 850 50 850 100% subsidies Local 98 623 84 567 86% 14 056 14 056 100% - - - Government Restructuring Ambulance 58 746 58 746 100% ------subsidy TOTAL 981 593 790 81% 1 589 1 034 65% 3 082 966 2 143 70% 528 989 323 287

66 67 2.6 Provision of Free Basic Services The free basic services with regards to water and sanitation offered by the CoJ during the 2008/09 financial year are summarised in the tables below:

Free Basic Water Table 2.15: Provision of Free Basic Water

Number of Indigent Number of Non- Total Beneficiaries Level of Service Households Indigent Households 43 413 780 253 838 518 6kl for all households 10kl indigent households

Free Basic Sanitation Table 2.16: Provision of Free Basic Sanitation

Number of Indigent Number of Non-Indigent Total Beneficiaries Level of Service Households Households 43 413 0 43 413 100% rebate on sewer

2.7 Financial performance for 2008/09 The City’s financial performance for the financial year are summarised in the tables below. Table 2.18below provides a summary of the City’s financial performance based on the financial indicators for the 2008/09 financial year. The detailed financial report is contained in the audited Consolidated Group Annual Financial Statements and summarised in the Group Chief Financial Officer’s Report for year ended June 2009.

Performance on Financial Ratios Table 2.17: Financial Performance

Financial Ratio 2004 2005 2006 2007 2008 2009 Growth in total revenue 21% 19% 11% 7% 13% 15% (%) Growth in rates and 10% 10% 8% 9% 10% 23% service charges (%) Growth in expenditure (%) 13% 9% 13% 8% 17% 25% Annual surpluses 246 1 458 1 673 782 1 998 726 generated (Rm) Growth in gross debtors 23% - 1% 3% 2% -11% (%) Growth in net debtors (%) 9% 23% 7% -5% 14% 5% Net debtors’ days 61 69 68 68 59 60 outstanding Capital expenditure (Rm) 1 148 1 860 2 663 3 309 5 342 6 373 Capital expenditure to 10% 14% 18% 20% 30% 31% revenue (%) Borrowing to revenue (%) 44% 39% 40% 38% 46% 54% Cash/investment balances 2 321 3 044 3 349 3 788 3 784 3 513 (Rm)

68 69 Revenue has grown by 15% mainly due to:

• An increase (23%) in service charges, which resulted from pass through costs for bulk purchases from Eskom and Rand water.

• A decline in grants and subsidies due to introduction of a fuel levy, which changed the allocation structure.

Operating Expenditure There has been a general upward trend in operating expenditure over the past three financial years, with a sharp 25% increase in 2008/09. There was a 22% increase in staff costs partly due to collective bargaining agreement on salary adjustments and the appointment of more staff than budgeted for by the Emergency Management Services, as well as in-year decisions.

Credit Rating The City’s credit ratings as at September 2009 (subsequent to the most recent update by the rating agencies) are as follows:

Table 2.18: Credit Rating

Agency Description Long-term rating Short-term rating Outlook Fitch Issuer Rating AA- (zaf) F1+(zaf) Stable Moody’s Issuer Rating As2.za p-1.za Stable

The stable outlook on the ratings is based on the expectation that the municipality will maintain a prudent financial policy as well as keep the debt burden at a manageable level.

68 69 Deliver professional, diverse and competent human capital for a World Class African City

70 71 Chapter 3: Human Resources and Organisational Management

3.1 Introduction People individually and collectively contribute to the achievements of the objectives of the CoJ, and are therefore the most important asset of the City. Excluding MEs, the City employed about 15 946 officials during 2008/09. The primary objective of Human Resource Management is to provide a complete and innovative HR service that addresses skills development and administrative function optimally. To this end, the CoJ has developed an HR strategy that addresses skills development, staff retention, employment equity, gender mainstreaming, employee wellness including HIV and Aids, performance management and, among others, creates a healthy work environment.

This chapter focuses on how functions are structured in relation to the appointment of senior managers, human resource management, how the City manages its most important asset and governance issues. 3.2 Human Resources Strategy While the IDP is concerned with the strategic priorities of the City, the Human Resources Strategy (HRS) places emphasis on the human capital that will be responsible for implementing its strategic priorities. The CoJ adopted an HRS that was workshopped with staff of the municipality during June 2007. The workshop agreed on the following HR vision for the CoJ:

“To deliver professional, diverse and competent human capital for a World-class African City.”

The strategy focuses among others on the development of HR in all aspects – organisational alignment, employment equity and diversity management, the integrated remuneration strategy for CoJ, the review, development and improvement of HR policies and procedures, the implementation of performance management on all levels, the improvement of HR management information and data, and conducting a customer survey to determine the staff view on the level of services. 3.3 Human Resources Management Human Resources Policies Local government is a highly formalised structural arrangement of bargaining and engagement with organised labour. The City is represented by the South African Local Government Association (SALGA) in the South African Local Government Bargaining Council (SALGBC). SALGA ensures that collective bargaining strategies support the overall organisational strategies through a consistent approach to employee matters, and the engagement with labour promotes cordial relationships in the workplace.

All policies and strategies that impact on labour relations have been consulted about, or where necessary, negotiated with the unions. Through this process, a new set of conditions of service have been introduced nationally, which create greater synergy and parity.

The HR strategy adopted by Council proposed that all HR policies be reviewed and improved or in certain instance new policies be developed during the 2007/08 financial year. All primary HR policies (18) have been reviewed and a progress report has been concluded for consideration by the Mayoral Committee.

70 71 Labour Relations The City has overcome major challenges on the establishment of uniform conditions of service that are sound for equality:

• SALGA national conditions of service were effective from 1 January 2006. This reduced the conditions of service for the CoJ from eight sets to one.

• The City negotiated divisional conditions of service to complement the SALGA conditions of service.

• The City also completed two climate surveys. The initial results were used to begin with targeted change management programmes in six departments.

• A toll-free number for staff and line-management was also implemented.

The Directorate: Labour Relations is mandated to deal with strikes in general on behalf of the City, its departments and municipal entities should the need arise. The City has adopted a Labour Relations Policy and has also developed a contingency plan that it uses to enhance and maintain relationships with labour, and to manage strikes as and when they occur. Numerous incidents of protected and unprotected strike action took place during this financial year.

The City’s Response to Labour Unrest

To maintain a harmonious and peaceful work environment, the City:

• Meets regularly with labour at the SALGBC at the Johannesburg Division as set down in the main collective agreement applicable to local government. The division has various structures that deal with issues between the City and labour;

• Management of individual departments meet periodically with labour representatives on department specific issues;

• Manages disputes between the parties at the SALGBC;

• Deals with employee grievances;

• Holds bilateral discussions with labour;

• Is establishing local labour forums in compliance with the main collective agreement;

• Manages and facilitates the speedy resolution of strikes;

• Concluded divisional conditions of service; and

• Conducts employee surveys every second year, identifies courses of action and mitigation thereof.

Skills Development and Training The City has developed a programme to address the skills and competency needs of staff. New challenges demand that staff perform optimally to meet the needs identified. Changes also affect processes, necessitating rapid adjustment by the departments. In the 2006/11 Mayoral Term, the City aims to invigorate the progress of skills development driven by programme priorities rather than the compliance requirements of the Skills Development Act. Skills development programmes will be pursued by the City to ensure that staff already in the City’s employ are ready for deployment to new responsibilities and/or added demands to their existing functions. This will be driven mainly by the programmes mentioned in the 2006/11 IDP.

The City also developed strong research capacity to monitor the emerging skills gaps. This capacity allows the City to work with high schools and academic institutions to advise students on career opportunities. The City will also go beyond internal skills trends to advise learners, especially from the historically disadvantaged backgrounds, on skills areas such as accountancy and ICT skills. The City also engages academic institutions on curricula development.

72 73 The Workplace Skills Plan (WSP) for 2008/09 financial year and the Implementation Report for the 2007/08 financial year were submitted to the LG Seta on 30 June 2008. The City training spend on programmes indicated in the WSP was R28 871 171, which is 1.43% of the salary spend of R2 018 958 167 as at 30 May 2009. Some of the training programmes include:

• A capacity building workshop on workplace skills for the unions and CoJ officials

• The LG Seta conducted a workshop on the development of the WSP for the HR field managers

• During the financial year a total of 204 interns participated in the City’s learnership programme. The number represents an increase of 27.5% from the previous year

• The City hosted 343 Learnerships in the following categories * Project Management * Finance and Administration * National Certificate Contact Centre Local Government * Project Management * Customer Management * Contact Centre Operations

• The number of learners hosted represents an increase of 14.3% in relation to the previous financial year.

Councillor Training, Development and Empowerment Programme

Councillors benefited from the following three skills development programmes:

• Councillor Study Assistance Programme

• Short-term Skills Training

• Councillor Wellness/ Life Skills Empowerment

Councillor Study Assistance Programme

The Councillor Study Assistance Programme provides Councillors with an opportunity to register with any South African accredited academic institution of their choice, and pursue a qualification relevant to local government. The Councillors could enrol either as individuals and/or as a group.

Seventy-one Councillors participated in this programme:

• Currently the CoJ has eight Councillors who have registered for the Certificate in Public Management at the University of Witwatersrand Graduate School of Public and Development Management.

• Twenty-eight Councillors enrolled in Advanced Certificate in Municipal Governance in 2007 and have all passed their examinations.

• Nineteen Ward Councillors enrolled for the Certificate in Community Leadership at the University of Johannesburg of which 15 passed their final exam.

• Two Councillors completed the Certificate in Political Leadership at the St Augustine College.

72 73 Short-term Skills Training and Development Programmes

The programmes attended by Councillors include:

• Local Government Protocol and Business Etiquette

• Effective Communication and Public Speaking

• Memory Training and Speed Reading

• Modern Mentorship and Coaching Programme (women Councillors)

• Abundant Living Leadership Programme (women Councillors)

• Conflict Management and Mediation

• CoJ Call Centre Training

• Councillor Briefing Sessions and Breakfast Seminars (Breakfast Seminar for Women; Breakfast Seminar for Men focusing on Leadership Excellence; Emotional Intelligence Seminar)

Employee Wellness Employee Wellness is a strategic approach that is workplace-based and aims to improve the quality of life of employees and their families. It involves programmes that assist employees to deal with difficulties at work and with personal challenges. The Employee Wellness Programme recognises that short-term personal and psychological problems may have an adverse effect on employees’ well-being and ability to do their work. An integrated, well- planned policy to govern implementation is imperative since involvement in such programmes cannot jeopardise an employee’s job security, compensation, promotional opportunities and/or reputation.

HIV and Aids The City of Johannesburg’s Wellness HIV and Aids policy creates a holistic framework for employee wellness through integration of HIV and Aids programmes with its Employee Assistance Programme. The main aim is to manage HIV and Aids in the workplace, to eliminate unfair discrimination and to promote a supportive environment regardless of an employee’s HIV and Aids status.

The programme has sought to provide voluntary counselling and testing support, access to treatment, prevention activities and campaigns, and psycho-social support. Training was provided for 400 employees to conduct peer education and assist in conducting awareness campaigns and road shows.

Healthy Living As part of the wellness programmes, a number of health projects were conducted such as a Body Mass Index (BMI) Project, Cholesterol Project, Blood Pressure Project (BP), Influenza Vaccination Project and Diabetes Mellitus Project. These projects were to create awareness amongst City employees of the inherent dangers of these medical conditions.

The Body Mass Index Project revealed that a third of employees measured well into the “normal” risk category, and more than a third were overweight. Another third were considered obese. The Cholesterol Project indicated 76% of employees who attended were within the normal levels. The Blood Pressure Project showed encouraging results - 72% of employees who were tested were within normal levels. Employees were vaccinated against specific virulent influenza strains. The project focused on older and immuno-compromised employees.

74 75 3.4 Organisational Structure Executive Management The Executive Management Team is appointed on a fixed-term contract (MSA, Section 57) and the positions of these appointees are shown in Table 3.1.

Table 3.1: Executive Management Team

Portfolio Name of person Employment Performance agreements contract in place in place City Manager Mavela AV Dlamini Yes Yes 2010 Sibongile Mazibuko Yes Yes Central Strategy Unit Rashid Seedat Yes Yes Chief Information Officer Patrick Mayaba Yes Yes External Relations Unit (ERU) Lorraine Wilkinson Yes Yes Public Liaison Khotso Kekana Yes Yes Internal Audit and Risk Mohammed Dukander Yes Yes Legal Compliance and Mayoral Karen Brits Yes Yes Committee Support Programme Phakama Abraham Mahlangu Yes Yes Finance Mankodi Moitse Yes Yes Economic Development Jason Ngobeni Yes Yes Revenue and Customer Relations Vicky Shuping Yes Yes Management Community Development Pilisiwe Twala-Tau Yes Yes Development Planning and Urban Phillip Harrison Yes Yes Management Environmental Management Flora Mokgohloa Yes Yes Infrastructure and Services Themba Camane Yes Yes Housing Uhuru Nene Yes Yes Johannesburg Metropolitan Police Chris Ngcobo Yes Yes Emergency Management Services Ntombi Gule Yes Yes Transport Lisa Seftel Yes Yes Health Refik Bismilla Yes Yes Corporate and Shared Services Reuben Denge Yes Yes Department

Personnel Expenditure Compared with Total Operating Expenditure The City has employed competent staff to provide efficient service delivery, and its remuneration policy has attracted the requisite talents to meet the City’s needs. The City will, however, constantly research trends in local government, nationally and internationally, in the areas of staffing and remuneration to ensure that the City is permanently adaptable to challenges of service delivery and policy changes. The remuneration policy of the City will also address market trends to respond sufficiently to staff poaching.

Table 3.2 indicates employee-related costs to operating expenditure.

74 75 Table 3.2: Employee-Related Costs to Operating Expenditure

City of Johannesburg GROUP CORE DEPARTMENTS Financial Year 2009 2008 2009 2008 Employee related cost to operating 26.37% 26.98% 26.27% 23.31% expenditure Personnel costs 5 269 672 4 318 763 2 946 440 2 279 226 Operating expenditure 19 983 060 16 005 268 11 215 691 9 777 004

The proportion of employee costs to operating expenditure remains within the acceptable standard of 30%.

The City’s staffing and remuneration policy does not pre-occupy itself exclusively with attracting the right people, but also focuses on people on the internal issues of ongoing training and development programmes, and how to deal with staff incorrectly placed over the next five years.

Total Staff Complement The total staff complement of the City is reflected in Table 3.3.

Table 3.3: Total Staff Complement

Municipal Entities Number of staff City Parks 1 596 Johannesburg Civic Theatre 86 Johannesburg Social Housing Company 64 Pikitup 2 713 Joburg Zoo 183 City Power 1 959 Metro Trading Company 51 Johannesburg Fresh Produce Market 282 Johannesburg Development Agency 57 Johannesburg Roads Agency 1 800 Joburg Water 2 709 Metro Bus 929 Johannesburg Tourism Company 20 Johannesburg Property Company 123 Sub Total 12 572 Core Departments 15 946 Total Staff (CoJ Group) 28 518

Vacancies The total number of posts filled and total number of posts not filled for core administration and municipal entities is shown in Table 3.4 below.

Table 3.4: Staff Vacancies and Positions Filled

Posts Core Departments Municipal Entities Total Filled Posts 15 946 12 572 28 518 Vacant Posts 2 736 1 243 3 979 Total 18 682 13 815 32 497

Employment Equity The Employment Equity Act requires that all workplaces promote equity of gender, race and disability. A programme has been developed to assess the accessibility of all Council’s main facilities with a view to taking corrective action to redress impediments.

76 77 The programme aims to create understanding and acceptance of people with disabilities and how to accommodate them in the workplace. This is in addition to targets for the employment of people with disabilities to promote sensitivity towards disability and to manage stereotypes. In the next five years, the City will be vigilant in attaining the targets set by the City’s Employment Equity Plan. The City has, however, emphasised that employment equity goes beyond aggregates, and instead focused on representation across all sectors and units of the CoJ.

The transformation proportions as at 30 June 2009 are shown in Tables 3.5 and 3.6:

Table 3.5: Population Group of CoJ Workforce

African Coloured Indian White Male Female Disability Target 74% 3.6% 2.6% 19.8% 50% 50% 2% Actual 83% 5.2% 1.8% 10% 56% 44% 0.4% Table 3.6: Employment Equity at Senior Management Level

Categories Male Female Total

A C I W A C I W Top three Management Levels 115 10 16 59 86 9 7 23 325

Proportional Representation 35% 3% 5% 18% 26% 3% 2% 7% 100%

3.5 Performance Management Introduction The Municipal Systems Act (MSA), 32 of 2000 requires the CoJ to establish a Performance Management System (PMS) commensurate with its resources, best suited to its circumstances, and in line with the priorities, objectives, indicators and targets contained in its IDP. The PMS is required to promote a culture of performance among its political structures, political office bearers, Councillors, and its administration.

The CoJ must also comply with Municipal Finance Management Act, 56 of 2003 (MFMA), Municipal Planning and Performance Management Regulations, 2001 and the Municipal Performance Regulations for municipal managers and managers directly accountable to municipal managers, 2006.

Policy and Process Performance management in the City consists of a three-tiered approach, with the City’s IDP informing the development of key areas of performance and targeting across all three performance levels. The key performance areas and indicators contained in the organisational scorecard are cascaded into departmental and ME scorecards, and further into individual scorecards, which ensure the appropriate alignment between organisational and individual performance.

Performance management, therefore, forms part of a strategic management approach within the City that would ensure the organisation is strategy led, and that key systems such as planning, budgeting and performance management are integrated. These approaches enable the City to plan and budget better, monitor and measure performance more effectively, and report on achievements in a transparent and convincing manner.

The City’s organisational PMS is the primary mechanism to monitor, review and improve the implementation of its IDP, and to gauge the progress made in achieving the objectives set out in the IDP. The City’s organisational PMS must also facilitate increased accountability, learning and improvement, provide early warning signals, and facilitate decision-making. The CoJ has implemented the City Scorecard and Sector Performance Scorecards that form part of the SDBIP of the City to measure organisational performance. Performance is measured quarterly and the quarterly performance reports are submitted to Council.

76 77 In response to changing legislation, the CoJ reviewed its Performance Policy Framework and Council adopted the updated policy framework during July 2007:

• Performance is in accordance with the policy measured by the CoJ on three tiers. The organisational performance (City Manager’s Scorecard) is measured and reported on as described above and reports were submitted to Council at the end of each quarter;

• The performance of the Section 57 appointees is measured in accordance with the Performance Regulations for municipal managers and managers reporting directly to him/her, 2006. Performance contracts were signed with each Section 57 employee and their performance was measured as agreed in these contracts; and

• The performance management policy for all staff will be reviewed and phased in during the new financial year and performance will be measured at least twice a year.

The City is required to appoint a performance audit committee in accordance with Regulation 14 of the Performance Management Regulations of 2001, to review the performance of the City as a Group, against the organisational Scorecard. The focus of the Performance Audit Committee is to:

• Assess the organisational and individual performance agreements of Section 57 employees against scorecards and IDP programmes and objectives;

• Review quarterly the organisational and Section 57 employees performance;

• Report bi-annually to the Mayoral Committee on the performance review assessments;

• Determine and recommend to the Mayoral Committee the performance bonuses for all Section 57 employees;

• Review the effectiveness of the performance management system and relevant policies such as performance management policy and remuneration policy; and

• Assess legislative compliance.

In 2003 the Mayoral Committee approved the establishment of the performance management and remuneration panel in compliance with the provisions with legislation, the Municipal Planning and Performance Management Regulations of 2001(Regulation no 7 146 of 2001). On the 29 November 2007 the Mayoral Committee approved the appointment of new panel members and the re-appointment of some panel members.

For the Performance Audit Committee to execute its mandate, the terms of reference have been developed in compliance with the Municipal Planning and Performance Regulations and the City’s performance management policy, to oversee the effective functioning of the City’s performance management system. The current external members of the panel were drawn from the public, private sector and the academia and are listed inTable 3.7.

Table 3.7: City of Johannesburg Performance Audit Committee

Name of Member Skills /Competencies Professor Patrick Fitzgerald Academia, public sector experience Mr. Zwelibanzi Mntambo Public sector experience in business development Ms. Seadimo Chaba Public and private sector experience in HR Dr. Ralph Mgijima Public sector experience Mr. Khanyiso Mguni Strategy and business development Ms. Phindile Nzimande Public sector experience Ms. Nonyameko Mandindi Public enterprise experience Mr. Seth Radebe Finance Mr. Griffith Zabala Organisational development and HR management

78 79 Development of a Group Performance Management Framework In the 2008/09 financial year the City developed a Group Performance Management Framework with aview to integrate organisational performance management practices across its core departments and MEs. The main objective of the Framework is to promote collective responsibility and accountability for achievement on the City’s strategic objectives by the Section 57 and MDs or CEOs of MEs.

The Framework was approved by the end of the financial year and entails the development of a sector performance plan that integrates the performance targets of core departments and municipal entities within a sector. Implementation of the sector performance plan will be piloted with two sectors – Transport and Infrastructure and Services, in the 2009/10 financial year.

Revision of Performance Management Policy for Section 57 Employees In accordance with the AG’s comments about full compliance with legislative provisions, the City revised its PMS policy for Section 57 employees. The revised policy was approved by the end of the financial year, introducing two aspects to ensure full compliance. The policy includes the application of core competency requirements in assessing the performance of Section 57 employees. The City will develop implementation procedures for this process during the 2009/10 financial year. The policy also includes the establishment of a Performance Evaluation Panel to evaluate annually the performance of individual Section 57 employees, which has been performed by the Performance Audit Committee. The Evaluation Panel will be established in 2009/10 to evaluate performance for the same year.

The Performance Evaluation Panel The purpose of the evaluation panel is to evaluate the performance outcomes of the City Manager and managers accountable to the City Manager. The Performance Evaluation Panel shall meet annually (final review) to evaluate the performance outcomes of all Section 57 employees and will recommend performance outcomes to the Mayoral Committee and Council for approval based on the results of its moderation and evaluation exercise.

Roles and Responsibilities of the Performance Evaluation Panel:

• Only meets once (annually) at the end of the performance cycle to:

* Evaluate the performance of the City Manager

* Evaluate the performance of all managers directly accountable to the City Manager

* Evaluate the performance of all MDs and CEOs of MEs;

• Primarily focuses on individual performance, but also considers institutional performance;

• Looks at individual performance for Section 57 employees only and the extent to which it is in line with the signed performance agreements and scorecards and the performance of the City (IDP and annual report);

• Considers the findings of the Performance Audit Committee as part of its process;

• May moderate individual performance results;

• Recommends individual performance rewards in line with the City’s reward framework and policy; and

• Submits recommendations to the Mayoral Committee and Council.

78 79 3.6 Governance Introduction Following the 2006 local government elections there have been some changes to the City’s system of governance. A pilot, which included a limited separation of legislative and executive powers, was implemented only in the municipalities of Emfuleni and Johannesburg, and has yielded valuable lessons. There is now a heightened sense of accountability, higher levels and quality of debate as well as greater scrutiny of the concept of governance, with an emphasis on the critical examination and assessment of issues at Section 79 committees of Council. This has helped to catapult the local legislature to a higher level.

In essence, the new political governance model has been sharpened to combine with the revised city administration to make service delivery more effective. The governance model of the CoJ is illustrated in the diagram and outlined in Chapter 1 of this Report.

The City embarked on various activities and programmes to enhance governance, which include:

• Working with organs of state to ensure alignment and co-operation;

• Regular governance meetings, such as Council, Executive Mayoral Committee, Section 79 committees and standing committee meetings;

• Meetings with key CoJ stakeholders such as communities to facilitate input and Council feedback;

• Corporate governance: Operation Clean Audit is a big focus for the City, which has taken the bold step of seeking a clean audit since the 2006/07 financial year. A significant amount of work has been done to obtain a clean audit report at the end of the current financial year;

• A number of measures are being undertaken to deal proactively with corruption. These include the following:

* Development of anti-fraud marketing strategy and implementation;

* Research and proposals for proactive fraud techniques and an improvement of existing methodologies;

* Internal tracking of fraud hotline activity and turnaround times;

* Code of conduct;

* Fraud awareness;

* Whistle-blowing policy; and

* Code of ethics.

A Year Planner is drafted annually to indicate key events and to ensure proper planning and attendance of the committee meetings.

80 81 Functional Service Delivery Reporting

80 81 Promoting integrated service delivery

82 83 Chapter 4: Functional Service Delivery Reporting 4.1 Introduction This chapter deals with how services were delivered during the 2008/09 financial year, indicating performance achievements against the IDP targets. The performance of the CoJ is reported against the scorecards prepared for each sector, which indicates the IDP programme and the agreed delivery agenda and target. The sectors are made up of various departments and municipal entities who deliver services to our communities.

Functional breakdown by Department The CoJ has been configured administratively to deal effectively with the targets and challenges facing the municipality. The functional breakdown of departments is set out in Table 4.1.

Table 4.1: Functional Breakdown of Departments

Department Functions Office of the Executive Mayor 2010 Office • 2010 Planning and Development Requirements • 2010 Bid Book Compliance • Project Management • Operations • Funding and Management Support

Public Liaison • Communications • Marketing • Events Management

Joburg Risk and Audit Services • Internal Audit and Forensics • Risk Management

Chief Information Officer • Information Technology • Innovation and Knowledge Management

Central Strategy Unit • Policy and Strategy • Integrated Development Plan (IDP) and Business Planning • Performance Management

Legal and Compliance • Legal Services • Compliance Monitoring • Mayoral Committee Support

External Relations • International Relations • Intergovernmental Relations • Protocol

82 83 Department Functions Finance Budget Office Valuations Supply Chain Management Treasury Expenditure and Accounting Rates and Taxes Economic Development Economic Analysis Research Economic Development Skills Development Business Development Sector Support Revenue and Customer Relations City-wide Revenue Management Management Electronic Channels Physical Channels Customer Relations Management Customer Database Management Community Development Arts, Culture and Heritage Services Community Services (Including Sport, Civic Theatres, Recreation and Libraries) Human Development Co-ordination (Including Social Services and Human Development Support) Policy Development and Support Services

Environmental Management Environmental Policy and Strategy Air Quality Control Conservation and Open Spaces Management of Regulatory Services Infrastructure and Services Water Management and Planning Energy Management and Planning Waste Management Management, Regulatory and Support Services Bulk Infrastructure and Co-ordination Housing Policy and Research Project Management Contract CAPEX OPEX, Debtors, Sales and Transfers Regional Accommodation Management and Regulatory Services Johannesburg Metropolitan Police Licensing and Testing Department JMPD Operations Processing and Prosecutions Municipal Court By-law Enforcement JMPD Support Services (Including Academy) Emergency Management Services Proactive Services and Disaster Management Academy Fire Medical Rescue

84 85 Department Functions Transport Transport Planning and Innovation Transport Infrastructure and Systems Transport Technology and Information Health Primary Health Care Public Health HIV and Aids Environmental Health Corporate and Shared Services Facilities Management Occupational Health and Safety Administration Fleet and Contract Management Human Resources Shared Services Labour Relations Development Planning and Urban Development Planning (Spatial Planning) Management Land Information Management Urban Management

The 15 MEs support the CoJ in delivering on key performance areas identified in the IDP and are also responsible for service delivery. The portfolios of the MEs are summarised in Table 4.2.

Table 4.2: Municipal Entity and Portfolio

Municipal Entity Portfolio Johannesburg Water Infrastructure and Services City Power Infrastructure and Services Pikitup Infrastructure and Services City Parks Environmental Management Johannesburg Zoo Environmental Management Johannesburg Roads Agency Transport Metrobus Transport Johannesburg Development Agency Development Planning and Urban Management Johannesburg Property Company Economic Development Johannesburg Tourism Company Economic Development Metro Trading Company Economic Development Johannesburg Fresh Produce Market Economic Development Johannesburg Civic Theatre Community Development Roodepoort Civic Theatre Community Development Johannesburg Social Housing Company Housing

Each of the functional service delivery areas has developed targets for the 2008/09 financial year based on the IDP processes as explained in Chapter 1 of this report. The performance against these targets is reported in this chapter.

84 85 Supported matriculants from child headed households with individual development plans for future growth and career paths post matric 86 87 4.2 Community Development Introduction The Community Development sector covers functions of Human Development, Social Assistance, Sport and Recreation, Library Information Services, Arts, Culture and Heritage, and Capital Project Maintenance and Implementation.

Social Assistance The directorate is directly involved in servicing vulnerable groups and ensures access to the CoJ ESP by qualifying households. In the first and second quarters, an NGO was commissioned to initiate a pilot for the job pathways programme and the implementation of a three-band benefit system which includes water, rates, electricity, and sanitation components. The programme was launched in October 2008 with an NGO consortium on board to assist with the process. Improvement of the rates component has been finalised and subsequently put forward as part of the City’s revised policy, which served at Mayoral Committee in January 2009. The directorate has also engaged public participation on this process.

The ESP service level agreement (SLA) with the National Department for Social Development for the whole three- band benefit system included in the tariff statement was approved by the Mayoral Committee in March 2009 for promulgation during the third quarter. The report was submitted subsequently at a Council meeting for approval post public tariff consultation.

Full implementation and roll out of the three-band system would begin in July 2009 and approval was sought from the City Manager to extend the present level of indigent benefit (2007/08 financial year benefit level) for three more calendar months for historically registered indigents not yet re-registered on the new system. Benefits for all historically registered indigents cease from 30 September 2009 until they re-register on the new ESP system.

The Job Pathways Programme is designed to connect the unemployed to self-sustaining economic activities to reduce dependency. The directorate developed a booklet, Siyasizana (We Help You Help Yourself), on the ESP. It provides vital information on how to access a subsidy through the ESP. The programme benefited 943 individuals by the end of the fourth quarter, through creation of job opportunities and skills transfer or development. The job opportunities ranged from payroll placements of 178 individuals, incubation of 400 beauticians to the incubation of 230 people through the contractor development programme. Forty unemployed women graduated from skills development through the Job Pathways project, and ten Job Pathways intake officers were stationed at all ESP registration sites.

Furthermore, the Job Pathways Programme facilitated placement of 640 labourers through the EPWP for stadia construction work. The work ranged from a fair mix of skilled and manual labour and the total number of individuals who benefited through Job Pathways is 1 583.

The City’s poverty index with final individual and geographic elements was finalised and approved by the Mayoral Committee in October 2008.

The Transport subsidy scheme which involves the Rea Vaya: Phase 1 System was tested in the third quarter, but its yield was negative because it did not have concession fare for the poor.

The rental subsidy process for the CoJ rental stock was finalised with the Department of Housing and signed off by respective Executive Directors during the fourth quarter. The subsidy aligns and collects ESP benefits and passes these on to the tenant as rent relief. More substantial integration between housing policy and the ESP will be finalised in the 2009/10 financial year.

Private sector rent subsidy model is still under aggressive development in consultation with the City’s Rates Department and a range of civil society stakeholders working through the Social Housing Foundation.

86 87 All relevant data-sets are fully integrated and accessible to the new application developed by SITA to manage ESP applications. A Memorandum of Understanding (MoU) between the Unemployment Insurance Fund and the Department of Social Development was finalised and signed off during the third quarter, allowing full access to the dataset. The databases are used to verify individual circumstances. A monthly update schedule developed will ensure data is as current as possible going forward.

Human Development The sector is custodian of the Human Development Strategy (HDS) and is therefore the primary co-ordinating unit for the implementation of the city-wide Human Development agenda. This encompasses the three broad areas making up the HDS tri-sector – poverty, inequality and exclusion.

Early Childhood Development (ECD) for this financial year includes development of crèches in areas where new housing developments have been planned. An ECD was launched in Pennyville in the first quarter. The development, valued at about R3m (million) was fully funded and developed by PZR, a 100% subsidiary of Carlgro M3 Group.

The development of an ECD facility at Vlakfontein Ext 3 began in the second quarter through funding solicited from the Al Imdaad Foundation to the tune of R3.9m and the facility is now complete and fully operational. The Braamfisherville ECD facility was incorporated as part of the Multi-Purpose Centre and is fully operational. All these facilities were equipped with the requisite material and Edu Toys.

An ECD Standards Enforcement Integrated Framework was developed, in consultation with the management team, comprising, Environmental Health, Emergency Management Services (EMS), Disaster Management, OHASA, Development Planning and Urban Management (DPUM), Human Development Directorate and JMPD. The objective of the framework is to deal with fragmentation and lack of co-ordination in serving the ECD sector programmatically. It includes the compliance tracking tool as well as standard operating procedures, which were implemented fully from the third quarter to ensure compliance by all identified facilities.

Through the Child-headed Household (CHH) Support Programme, 46 matriculants, out of 409 children living in 226 CHHs, have Individual Development Plans compiled for future growth and career paths post matric. A third (15) of these matriculants were placed on the Agricultural skills project at Joburg Fresh Produce Market. A further 17 matriculants were placed into the Learnership programme with the Community Development Department where they are mentored, coached and appraised regularly to evaluate the impact of the programme.

The CHHs benefit monthly from the food programme. Against a target of 10 000, the number of orphans currently in the database receiving support from the bouquet of services is 10 747. This includes homework assistance, food support, holiday programmes and sport and recreation support.

The number of companies owned by youth, women and people with disabilities benefiting from a preferential procurement programme stands at 115 registered by the end of the fourth quarter against a target of 100. Fifty-six were women-owned, 38 youth-owned and 21 owned by people with disabilities. Procedures to run the programme were developed in the second quarter and approved by the Mayoral Committee in the third quarter.

The sector continues to support older person’s and 1 000 of them were earmarked to benefit from four programmes by the end of the financial year. Already 1 007 ‘gogos’ and ‘mkhulus’ benefited from the programmes, against an annual target of 1 000. The support included food programmes, children in households headed by older persons linked to the Bana Pele programme, empowerment programmes, and non-financial material support.

A centre also was developed in Phiri, Region D, as a pilot for an older person’s day care facility. It was launched and operational from June 2009. There were 32 registered ‘gogos’ and ‘mkhulus’ and the facility provides an integrated set of programmes and interventions managed by a competent team of multi-disciplinary professionals involved in promoting the wellbeing of elderly persons.

Migration has become critical and the sector has made extensive progress in the quest to increase tolerance for migrants. Dialogues and public seminars involving civil society, migrants and organised labour were held in all

88 89 regions during the second quarter. Recommendations from these sessions were tabled and have been submitted for adoption to the Mayoral Committee in January 2009. The establishment of a Joburg Migrant Advisory Committee has also been approved.

The African Literary Development Programme has been attached to the migration programme and has culminated in a festival called Africa History Week, which fosters tolerance by creating a non-threatening environment for people of different origins to interact with each other. The event took place in May 2009. This was planned for the fourth quarter to coincide with the launch of the African Literature Bookstore in Region E. The main objective of the bookstore is to popularise literature, programmes and writers that highlight information about Africa and South Africa in particular in all 11 official languages.

Library and Information Services The Human Development Strategy has repositioned the Library and Information Services Directorate to address social exclusion through the equitable distribution of facilities, training and skills development as well as programmes through Sport and Recreation, Arts, Culture and Heritage.

In three new informal housing developments, the directorate established satellite libraries, which were fully operational by the end of the fourth quarter. The Pennyville satellite library was established and launched during the first quarter whereas the Braamfisherville and Vlakfontein satellite libraries were completed during the third and fourth quarter respectively.

The Joburg Literary Festival took place during March 2009 and was well received by the youth and the community. A number of developmental programmes such as a writing competition, cultural exchange among the youth, storytelling and poetry festivals were introduced during the year. A Gala event was held on 18 March 2009 as an opportunity to reward the winning writers and poets with book vouchers, certificates and other prizes. The festival attracted about 850 participants.

The following core functions continued to deliver effective Library and Information Services at 84 service points throughout the City:

• Collection and maintenance of books and other materials: Reading material and assistance is provided to citizens of all ages to give them access to information, education, lifelong learning, and recreation (service delivery at service points). Special emphasis is on services to children and educational support for school learners. Literature is also provided to old age homes and prisons;

• Reading development: Reading and the development of a reading culture is promoted among children, youth and families;

• Skills development: Literacy training, science and technology awareness, career development services, and business information services is provided; and

• Bibliographic management: A database of these materials to locate information and to enable and support the delivery of services and programmes to the public is being developed.

Arts, Culture and Heritage Services The development of two art memorials was completed in the second quarter:

• Memorial Wall of Artists in Newtown; and

• Tribute to Jessie McPherson (The End Street Pedestal).

During the fourth quarter two African icon monuments were completed:

• A Tribute to Bram Fischer; and

• Walter and Albertina Sisulu Artwork and Statue

88 89 Tourism promotion plans have been developed to take advantage of the opportunity these monuments present.

The sod-turning ceremony for the Soweto Theatre took place in February 2009, with the Executive Mayor and the Minister for the Department of Arts and Culture in attendance. The first phase of the theatre development started at the end of the fourth quarter. Group 5 Construction Company was appointed and is on board with the development. The City Manager has been requested to rework the timelines as the construction phase was delayed due to unforeseen circumstances. An extension was granted. Designs, plans and public participation processes have all been finalised.

The support to emerging artists has shown progress, with more than double the number of targeted artists supported (750 against an annual target of 300). The Community Development Department directly supported 468 artists, while the Roodepoort City Theatre incubated 202 artists. The Johannesburg Civic Theatre ran a talent search programme and offered space.com for 80 young people who wanted a platform to showcase their skills and abilities in front of live audiences.

Attracting new audiences to the theatres has also been the focus for the sector. Recommendations from research undertaken to investigate ways to deliver new productions targeting previously disadvantaged communities and also to promote a culture of theatre attendance by diversified communities were implemented. By the end of the financial year, 15 productions for disadvantaged communities took place at the Johannesburg Theatre Complex and Roodepoort City Theatre, against a target of ten.

The sector continues to provide a range of services including the protection, conservation and proclamation of the unique and diverse cultural heritage of South Africans within the CoJ. It looks after the city’s museums, historic sites and heritage buildings, and also co-ordinates and presents arts festival programmes. The directorate plays a crucial role in economic, social and urban regeneration and in developing human talent and the vision of Johannesburg as a creative city. The CoJ’s Creative Industries Strategy is a powerful way to enhance the city’s profile, identity and distinctiveness, while simultaneously creating employment, developing human skills and generating social cohesion.

Sport and Recreation The focus for transformation in sport has been on seven codes – tennis, golf, equestrian, indigenous games, swimming, rugby and basketball. Although these are ongoing, funding constraints hamper growing the programmes in all regions. About 3 000 children participate in these programmes citywide.

Although programmes such as the Burn Survivor’s Programme, Learn to Swim holiday programmes and general sport and recreation activities have continued, the sector has focused on creating an environment conducive to fostering these activities.

Capital Projects

A maintenance and preservation plan for strategic assets has been developed and was approved by the Mayoral Committee in the third quarter. It aims to ensure long-term sustainability and creating flagships for the CoJ. This spans libraries, galleries and museums, as well as skills development centres. The repairs and maintenance of sport and recreation facilities has remained the main focus since the beginning of the financial year to ensure that the status of our facilities maintain a high standard.

The completion of three stadiums created a huge attraction as they were utilised as training venues during the FIFA Confederations Cup 2009 in the fourth quarter. Although other community facilities were being developed, completion of ten informal soccer fields into multi-use sporting facilities allowed disadvantaged communities to start developing in sporting codes other than soccer and each of these communities has at least two sport codes – cricket and recreational volleyball. The department will continue to solicit funds for ablution facilities in the ten fields in the next financial year (2009/10).

90 91 This Capital Projects directorate solicited funds from the National Development Provincial Grant to develop a sport and recreation facility in Vlakfontein Ext 3 but was later declined. Nevertheless, the directorate managed to equip the ECD in Vlakfontein Ext 3 with playground equipment, which included a jungle gym, a sandpit and swings.

Table 4.3 Community Development Performance against Targets

IDP Programmes 2008/09 Delivery Agenda Actual Performance Five-Year Strategic Access to Expanded Social Package (ESP) by qualifying households Objective City Social Package Develop and deploy a City Poverty Index Fully developed CPIS by mid-year Programme system (CPIS), roll out ESP according to CPIS, focusing on vulnerable groups Implement Exit Strategy through training and 1 583 jobseekers placed placement of 1 000 beneficiaries based on Job Pathways Programme initiated indigence register as key exit strategy for ESP. Piloted, extended into comprehensive service Business Plan: open to registered indigents Number of job placements for those on indigence database: Job Pathways Programme Pilot Job Pathways Programme Job Pathways advisory centre piloted in Soweto and expanded into comprehensive service for all registered indigents 1 583 jobseekers placed Five-Year Strategic Qualifying citizens knowledgeable about accessing social grants Objective Access to Social Translation to all official languages Information on social grants updated Grants Programme and distributed in four languages and Braille Roll out the awareness campaign in Campaigns undertaken through partnership with Ward Committees, Youth presentations to Ward Committees, Forums and Women’s Forum on a ward basis, stakeholder forums, pamphlet targeting all the institutions within the ward distribution through clinics, ECD (churches, schools, crèches, multipurpose centres, schools, public meetings and centres, etc) community radio talk shows Determine baseline from SASSA Indigent ID numbers matched to SASSA database Business Plan: Percentage of implementation of data All relevant data sets fully integrated integration system with national departments and accessible to new application and agencies: SASSA, Home Affairs, Housing, developed by SITA to manage ESP Social Development, UIF applications

The databases used to verify individual circumstances and updated monthly

90 91 IDP Programmes 2008/09 Delivery Agenda Actual Performance Five-Year Strategic Increased number of City-run or City supported programmes Objective Vulnerable Increase OVCs accessing assistance from CoJ 10 747 orphans assessed and Households Support from connected with provincial and Programme national interventions 8 000 to 10 000

Business Plan: Number of orphans enabled to access uptake of government services and interventions for orphans on the City’s database Compile 200 Individual Household Target achieved, City ensuring poor Development Plans for CHHs. (Assistance and vulnerable households can access to OVCs include clothing, food, statutory its support mechanism and bouquet support, school uniform, and school fees of services – including food, health, exemption, recreation, homework assistance, homework, sports and recreation, etc.) 216 individual learning plans, bursaries and learnerships, and job Business Plan: placements Number of CHHs with individual development plans for orphans on CoJ services 50% of recipient of Food Bank Parcels to Food Bank Parcels benefited about assisted to establish or participate in food 6 000 households (25 000 garden projects to supplement the donation individuals) and all involved in food gardens and other small scale poverty Business Plan: alleviation projects Number of components of support package for older persons-headed households Component support package developed and implemented with package developed and implemented, with entailing the following components: 1 104 elderly persons benefiting • Connection to interventions for school age children including Bana Pele Programme

• Provision of food security support and non-food material including blankets and clothing Support Programme for senior citizens living The component support package with OVC, in particular Granny-headed developed and implemented, households benefiting 1 104 elderly persons 1 000 senior citizens were reached through The component support package was the support programme developed and implemented, with 1 104 elderly persons benefiting Business Plan: 1 000 older persons benefiting from older persons-headed household support package Individual Household Development Plan for all Individual Household Development CHHs accessing assistance through CoJ Plans developed to ensure poor and vulnerable households can Business Plan: access City’s support mechanism Number of child headed households with and bouquet of services, including individual development plans for orphans on food, health, homework, sports and CoJ services recreation, 216 individual learning plans, bursaries and learnerships, and job placements

92 93 IDP Programmes 2008/09 Delivery Agenda Actual Performance Five-Year Strategic Increase percentage of ECD facilities able to improve on their grading for the Objective vulnerability index Early Childhood Expand Ready to Read Development City committed to provide start up Development (ECD) Programme to 80 ECD Centres; train 80 support for ECD, including care- Programme caregivers; and expand satellite services to one giver training and the Ready to Read more area, subject to budgets Development Programme that is operational in 65 centres linked to 15 libraries in the city ECD Fund fully established and raised a Funding to the value of R3.9m minimum of R100 000 for developmental solicited from the Al Imdaad programmes Foundation Increase the target of ECD facilities assisted The City committed to provision of each year by 10% start up support for ECD, including caregiver training and a reading development programme Perform impact evaluation with respect to all The framework and compliance ECD Programmes tracking tool fully implemented to ensure compliance to the standards by all identified facilities ECD Programme to continue into 2009 ECD programme continued Acquisition of office space/buildings for Established sanctuary for displaced sanctuaries for vulnerable groups women and children at Hospital Hill Implement the Monitoring and Evaluation The framework and compliance System for impact of ECD Programme tracking tool implemented fully to ensure compliance with the standards Business Plan: by all identified facilities Number of components of enforcement Aim to address fragmentation and standards framework implemented for ECDs improve co-ordination to serve the ECD sector programmatically Introduce skills development programmes to All newly built ECD facilities fully assist all ECD Centres to operate as viable operational and equipped with economic entities educational material 20% of the total number of untrained 342 ECD caregivers were trained ECD practitioners identified through the vulnerability index will be trained Business Plan: ECD facilities and library services Number of new housing developments provided in new housing provided with ECD facilities – Pennyville; developments – Pennyville, Fleurhof; and Vlakfontein Extension Vlakfontein and Braamfischerville Five-Year Strategic Increased range of activities women and increased representation of women in city Objective activities Women Development Upscale co-ordination of the Women As part of the Women Development Programme Development Strategy Implementation, and Strategy the City engaged with the review, and update same through a women’s 16 Days of Activism to extend it to summit ongoing programmes

Business Plan: Companies that benefited: Number of (40) youth, (40) women and (20) (94 women-owned to the value of people with disabilities’ companies benefiting more than R18.2m; from establishment of legally compliant 50 youth-owned to the value of more preferential procurement process than R7.3m; 21 owned by people with disabilities to the value of more than R1.6m)

92 93 IDP Programmes 2008/09 Delivery Agenda Actual Performance Place 4four women co-operatives in each Developed procurement and of the skills centres as part of the Incubator incubation process resulting in Programme registration of several companies on database Develop and implement empowerment 515 women benefited from 14 programme at 12 selected libraries to equip information events to promote women with family literacy skills; and target women inclusion and development 150 illiterate/poorly literate women to enrol and focusing on, among others, as learners at the computer literacy training health, business, domestic workers’ libraries rights

Five-Year Strategic Improved proportion of residents within 5km of key social infrastructure Objective Sustainable Human Develop a database for all new housing The City has a record of all new Settlements developments housing developments and considers Programme plans for required facilities Completion of Kopanong Sports Centre Project deferred due to financial constraints The refurbishment of the Lord Khanyile Project deferred due to financial Community Hall (flooring, ventilation, kitchen, constraints seating, etc); better facility for the community and more revenue for the Council Upgrade Kanana Community Hall (sound Project deferred due to financial proof, stage) to curb crime at a cost of constraints R500 000 Source external funding and scope for a multi- Project deferred due to financial purpose centre – Vaal, Ebony, etc. (escalate to constraints GCIS) (Kaalfontein and Ebony Park) – needs a library, ward office, community hall, home affairs service Complete the Braamfischerville MPC Due to financial constraints the development in 2008/09, then scope a library would be incorporated with satellite library service in Braamfischerville, and the multi-purpose centre (MPC) in source external funds for swimming pool Braamfischerville. MPC complete and library fully operational Business Plan: Number of new housing developments provided with ECD facilities (and library services) Extensive repair work to George Gosh stadium Project deferred due to financial constraints

94 95 IDP Programmes 2008/09 Delivery Agenda Actual Performance Five-Year Strategic More users benefiting from assisted literacy and numeracy training at City libraries and Objective targeted skills development programmes Skills Development Youth: Established Youth Business incubator Programme Business/Entrepreneurial skills development sites, such as Hydroponics Farming workshops/events to 18 and related project and Orange Farm Skills Centre

200 young people received call centre training Women: Literacy training provided across the Family Literacy Skills for Women, and City libraries additionally target 150 illiterate/poorly literate women to enrol as Learners at the computer- based literacy training libraries Vulnerable Groups: Enhancement of services to old age Provision of book loan collections and related homes through the implementation support programmes to 14 under privileged of support programmes such as Old Age Homes reading circles and talks implemented in seven homes to assist with low illiteracy Vulnerable Groups: City ensures the poor and vulnerable Increase libraries rendering educational households can access its support support programmes such as homework and mechanism and bouquet of services, information literacy to children in vulnerable including homework assistance and households, from 12-14 for all 216 individual learning plans Investigate the local skills within the 800 youths identified and developed community and develop appropriate creative from talent identification through industries strategies for available skills and creative industries from historically resources, e.g. music or crafts disadvantaged communities

Community development will work with The Creative Industries Strategy is the DED; Skills Hub will be linked to satellite powerful way to enhance City’s skills across all regions in consultation profile, identity and distinctiveness, with Community Development; and public while creating employment, participation workshops will be part of the developing human skills and Skills Hub roll out. The approach in Skills improving social cohesion Strategy is to be customer and client, also focussing on women, youth, sport, arts and culture

Ensure excellent reference services in 20 CoJ libraries

Provide bibliographic services to 83 LIS service points

94 95 IDP Programmes 2008/09 Delivery Agenda Actual Performance Five-Year Strategic Increased number of developed public spaces (other than formal parks) where citizens Objective can interact freely and safely Public Spaces Completion of the formalisation of soccer Ten fields developed and greened Programme fields in all regions, and ten more planned for greening in Region D Develop policy on public spaces and historical Completed three monuments and public spaces. two art-memorials: Tribute to Bram Fischer at Braamfischerville Multi-Purpose Hall Business Plan: Walter and Albertina Sisulu Artwork Number of significant / iconic African public at Metro Link spaces programme with tourism promotion Statue of Kippie MEketsi. plans developed Memorial Wall to Artists in Newtown Tribute to Mayor Jessie McPherson (End Street Pedestal)

Completed Vilakazi Street Precinct development

Historical public spaces, including cultural and heritage precincts, concentrations of creative industries and other major infrastructure will be significantly developed and enhanced by the Bus Rapid Transit (BRT) development, which creates a transport link to these sites Five-Year Strategic Steadily increasing percentage of residents who have either participated in or attended Objective a CoJ led arts, culture or heritage initiative Public Arts Public Arts and Heritage Programmes in all Completed three monuments and Programme regions beginning 2008/09 two art-memorials: • Tribute to Bram Fischer at Braamfischerville Multipurpose Hall • Walter and Albertina Sisulu Artwork at Metro Link • Statue of Kippie Moeketsi • Memorial Wall to Artists in Newtown • Tribute to Mayor Jessie McPherson (End Street Pedestal) The City continues to provide a diverse range of services including the protection, conservation and proclamation of cultural heritage sites, as well as co-ordination of arts festivals

96 97 IDP Programmes 2008/09 Delivery Agenda Actual Performance Historical public spaces, including cultural and heritage precincts, concentrations of creative industries and other infrastructure will be significantly developed and enhanced by the BRT, which creates transport link to the sites World Summit or Arts and Culture September Museum Africa upgraded in 2009 preparation for World Summit on Arts and Culture Commissioning for the Soweto Theatre and Design for theatre finalised. Sod- Soweto Music Centre turning ceremony took place. Site construction began in June 2009 Erect Walter and Albertina Sisulu Monument Monument erected Business Plan: 15 productions staged to attract new Four theatre productions targeting previously audiences disadvantaged audiences facilitated by CoJ theatres The Roodepoort Theatre staged four productions that attracted 1 000 patrons. Productions promoted regular attendance to theatres by previously disadvantaged communities

About 2 000 children from previously disadvantaged communities exposed to theatre productions through ticket subsidisation Business Plan: 468 young artists supported through creative arts programme 100 emerging artists incubated through

theatre programme 80 artists and 202 children benefited from incubation of emerging artists programme

96 97 IDP Programmes 2008/09 Delivery Agenda Actual Performance Five-Year Strategic Improved accessibility to sports and recreation facilities and programmes, both in terms Objective of distribution across the city and average operating hours Sports and Will approach external stakeholders to provide Unsuccessfully solicited funding from Development funding for the upgrade of certain facilities the National Development Provincial Programme in regions via an extensive strategy. Will do a Grant to develop a sport and scoping exercise and a business plan for four recreation facility in Vlakfontein Ext. 3 out of seven regions, depending on need, land availability, zoning status and previous spatial planning Will do feasibility study for golf course Several sport transformation rehabilitation in Mshenguville or for programmes, including tennis, development of a mass-participation friendly rugby, golf, swimming, basketball, sport facility equestrian and indigenous games, implemented in historically disadvantaged communities Implement Norms and Standards Policy for All facilities maintained according to facilities norms and standards policy Finalise People with Disabilities Access A detailed accessibility audit is Programme for remaining facilities; perform complete and in the process of being feasibility study and scope for indoor sports implemented in a phased approach facility in Region A Perform feasibility study and scope for Sports Ten informal sports public spaces Complex in Region D in Region D developed into multi- purpose sports facilities

Several sport transformation programmes, including tennis, rugby, golf, swimming, basketball, equestrian and indigenous games, were implemented in historically disadvantaged communities Perform a feasibility study and a scope for Several sport transformation the rehabilitation of the Mshenguvulle Golf programmes, including tennis, Course rugby, golf, swimming, basketball, equestrian and indigenous games, were implemented in historically disadvantaged communities 2010 FIFA World Cup Continue Legends Programme in schools for Several sport transformation Legacy Programme sport development and talent identification (at programmes, including tennis, least one in every region) rugby, golf, swimming, basketball, equestrian and indigenous games, implemented in historically disadvantaged communities Continue 2010 stadium upgrades: Orlando, All stadium construction on schedule Dobsonville and Rand on schedule Soweto Theatre design to commence in May Design of theatre was finalised 2008, for completion by March 2010 Sod turning in third quarter Site construction began June 2009 Submitted funding applications to MIG and the NDPG for balance of R33m A sponsorship and donations programme prepared to raise additional private sector funding

98 99 IDP Programmes 2008/09 Delivery Agenda Actual Performance Five-Year Strategic Xenophobic attacks on immigrants to Johannesburg eliminated and tolerance of Objective immigrants increased Counter Xenophobia Business Plan: Dialogues and public seminars and Common Number of public seminars and community including civil society, migrants and Citizenship level dialogues on migrant issue involving local organised labour held in five of the Programme civil society and organised labour seven (except B and C as these were non-conflict areas) Regions across the City Business Plan: The Joburg Migrant Advisory Number (one) of Migrant Advisory Boards Committee and Board members established approved for establishment and appointment Five-Year Strategic Increased range of youth activities and youth representation in City activities Objective Youth Development Implement Awareness Campaigns with Campaigns undertaken through Programme regional Youth Forums using Youth Role presentations to Ward Committees, Models against drug and alcohol abuse stakeholder forums, pamphlet distribution through clinics, ECD Centres, schools, public meetings and community radio talk shows Establish partnerships with relevant Developed procurement and organisations to roll out Mentorship incubation process resulting in Programmes for youths in all regions registration of several companies on database Operate a Sanctuary for Street Children Established sanctuary for displaced women and children at Hospital Hill Ensure all seven regions have fully functional The City established a youth Youth Empowerment Zones comprising Youth preferential procurement process, Advisory, Techno Centres and Screening Hubs benefiting 50 youth owned companies in projects to the value of more than R7.3m Five-Year Strategic Increased access and support for the aged and people with disabilities as assessed Objective through the City’s customer satisfaction survey People with Establish contact points providing information Information on social grants updated Disabilities Access and in Braille and distributed in four languages, Support Programme including Braille Extend information booklets to remaining four Information on social grants updated official languages and distributed in four languages, including Braille Engage with service providers targeting the Information on social grants updated blind to expand access to City information and distributed in four languages, including Braille Develop and distribute a PWD Information Information on social grants updated booklet on available services, opportunities, and distributed in four languages, resources and rights including Braille Complete PWD access provision in remaining All Arts, Culture and Heritage Council facilities in Region C facilities accessible to people with disabilities

Business Plan: 21 companies owned by people with Number of people with disabilities’ companies disabilities benefited from preferential benefiting from establishment of legally procurement on projects worth more compliant preferential procurement process than R1.6m

98 99 Facilitated strategy and leadership training provided by the Wits Business School

100 101 4.3 Corporate Shared Services Introduction The sector’s primary focus is internal resources, systems and support processes of the organisation, with an external element directed at the community at large. The department supports the City’s Growth and Development Strategy (GDS) by ensuring the efficient and effective utilisation of common resources, systems and administrative processes to promote optimal performance of management and service delivery sectors.

The sector also supports the human development, health and safety, financial sustainability as well as governance and administration strategic initiatives. The functions are thus aligned to two primary principles of the development paradigm, namely, proactive absorption of the poor, and innovative governance solutions. The sector strives to continuously improve the City’s governance by ensuring effective and efficient support services to line departments. The sector aims to protect the City against unauthorised, irregular, fruitless and wasteful expenditure; support safe, clean and accessible city buildings; and ensure best practice human resource services, with comprehensive fleet management and administrative support services.

Summary of Overall Performance Performance highlights of this sector include:

• A hundred percent of all City corporate buildings have been audited to monitor compliance with OHASA standards and all high-risk deviations were rectified. All corporate buildings are maintained to comply with OHASA standards and the SLA was finalised for all departments;

• The programme to upgrade CoJ buildings included making it accessible for people with disabilities and all corporate building entrances and exits are now accessible to them;

• Public conveniences situated at the Metropolitan Trading Company (MTC) Taxi ranks were refurbished;

• Theft at Metro Centre was reduced even further through effective monitoring and maintenance of the access control system and the appointment of a new security provider;

• An HR competency assessment was conducted and training interventions were developed to address the skills gap. The WSP for 2009/10 and the implementation report for 2008/09 were submitted to the LG Seta.

Performance against Delivery Targets

Table 4.4: Corporate and Shared Services Performance against Targets

IDP Programmes 2008/09 Delivery Agenda Actual Performance Five-Year Strategic 10% improvement on the resolution of contractual provision in terms of the Master Objective Fleet Service Contract Fleet Management Maintain fleet availability at 90% for Developed a fleet contract monitoring and and SLA Compliance Sale and Lease Back Vehicles (SLB) evaluation scorecard for 2008/09. Contract Effective and Efficient and 95% for Full Maintenance Lease compliance assessed and audited by external management of fleet Vehicles (FML) competency provider. Achievement is 98.59% cost Vehicle Abuse Management (VAMS) Tighter controls introduced for vehicle implemented by December 2008 utilisation and downtime management

100 101 IDP Programmes 2008/09 Delivery Agenda Actual Performance Five-Year Strategic New public conveniences developed and existing ones maintained at world-class Objective standards Public conveniences Five public conveniences built by end Five facilities constructed and commissioned programme 2008/09, and accessible to people into service with disabilities Five-Year Strategic All City corporate buildings to comply with the OHASA requirements, and be Objective accessible for people with disabilities Corporate Building All City owned corporate building All corporate buildings 100% up to date on Maintenance contracts managed to SLA standards maintenance schedule Programme Metro Centre Manage security systems and JMPD confirmed that the service provider has Programme procedures to prevent loss and adhered to SLA requirements. In addition damage to Council assets a 6.68% reduction in theft based on the 2007/08 figures was achieved All 23 lifts at the Metro Centre The service provider is on site and has begun upgraded, depending on the preliminary work on the upgrading of the lifts availability of funds Five-Year Strategic 10% improvement in response rate to employees to Climate survey done every two Objective years Change Management Conduct Culture Climate Survey Conducted road shows and interviews with Programme every two years Executive Management. A report on change management compiled for implementation in 2009/10 Collective Bargaining Revise Change Management Conducted road shows and interviews with Programme (new Strategy and Model for City Executive Management. Compiled report on programme) change management for implementation in 2009/10 Compliance with and The City complied with collective agreements implementation of all collective agreements Improve turnaround times in dealing Four complex disciplinary cases dealt with in with discipline, appeal cases and an average of 32 working days during the last grievances quarter of the year Labour Relations All 400 senior management staff Rolled out the City’s Executive and Senior Training Programme trained on labour relations by June Management Team programme. Four groups (new programme) 2009 enrolled and attending classes Employee Wellbeing Conduct 10 road shows to promote 100% implementation of EAP for employees Programme EAP and Councillors. Several physical, emotional and financial counselling sessions were held

102 103 IDP Programmes 2008/09 Delivery Agenda Actual Performance Five-Year Strategic Improve Customer Satisfaction Rating of Human Resources Services by line function Objective management by 20% HSSC Development Fully capacitated operational HRSSC Fully implemented and 100% operational Programme Five-Year Strategic Improve Customer Satisfaction Rating of Human Resources Services by line function Objective management by 20% Skills Development Increase number of appointed A 45% increase was achieved, with 297 interns Programmes interns and learners by 5% to 109 enrolled (Including internships, and 362 respectively for the year learnerships, Career development and training and bursaries, training, development policy developed and approved, Implement leadership and and management including a Strategy and Leadership course management development development) through the Wits Business School programme Four groups totalling 91 participants have been enrolled and attending classes HR Policy Assessment A report on the revision of all HR policies was and Revision All HR policies Revised completed and approved by Council in May 2009 Implementation and training of the Ongoing training conducted on all new or newly developed approved policies revised policies Employment Equity Employment equity plan 95% implemented. Programme (including Roll out Gender Mainstreaming Comprehensive report on all activities and PWDs and gender Programme progress completed mainstreaming) Five-Year Strategic Full implementation of a Corporate and Shared Services delivery model for core Objective departments (new objective) Shared Services Consolidation and finalisation of Shared Services Centre fully implemented and Model the complete roll out of all Shared 100% operational Services projects currently in process of Core departments Printing Increase income of printing services Conducted activity-based costing exercise, equal to the increase in cost for the revealing that the bulk of revenue generated hire and maintenance of printing from duplicating. To undertake further equipment exploration of potential revenue increases Five-Year Strategic 20% Improvement in client satisfaction levels on administrative support services Objective Cellular Phone Service 100% adherence to contracts and Dealt with most service delivery issues. SLAs Statistical compliance assessment on primary deliverables to the SLA 95.82%

102 103 Recruited 75 new SMMEs for export oriented training

104 105 4.4 Economic Development Introduction The sector is responsible for the City’s economic interventions to create conditions for accelerating local economic growth (9%) that is sustainable and ensures that the benefits and opportunities are equally spread to all its clients. It is also responsible for overall co-ordination, as well as strategic direction of economic development in the City. The sector comprises the Economic Development Department that has oversight of four MEs: Johannesburg Metropolitan Trading Company (JMTC), Johannesburg Tourism Company (JTC), Johannesburg Property Company (JPC) and the Johannesburg Fresh Produce Market (JFPM).

Summary of Overall Performance Economic Perspective

The 2008/09 financial year was marred by the economic recession that gripped the entire world. Inturnthis affected the performance of South Africa’s major sectors such as manufacturing, retail, and business as well as the resources sector, particularly mining. It saw the financial sector’s interest in new business ventures wane, adopting instead a more risk-averse approach, to concentrate rather on consolidating investments already made. This had a negative effect on the private sector especially small businesses, which are a major source of employment, resulting in decreased demand for goods and services. Unemployment rose, while inflation increased due to high fuel prices and weakening of the country’s currency. For the City, it spelt hard financial times as more of its revenue base became eroded with rate payers’ impairment accounts rising.

Even with determined steps around the globe to stabilise the financial sector and continued use of macroeconomic levers to support aggregate demand, the global economic growth is projected to contract by 1.4% in 2009 (IMF, July 2009). This represents the worst post-World War II recession by far. A moderate recovery of 2.5% is projected in 2010 and this will depend on stepping up efforts to heal the financial sector, while continuing to support demand with monetary and fiscal easing. The advanced economies have been the hardest hit by the recession, with their output expected to contract by 3.8%, while the emerging market growth is projected at only 1.5%. The Chinese economy remains the backbone of the emerging world’s economic performance, as government-led infrastructure investment increases. Fiscal stimulus packages have amounted to about US$26 trillion worldwide with massive stimuli being provided in the US, China, Brazil and the UK.

South Africa’s economy is under severe pressure, with adverse repercussions felt by most sectors of the economy. The seasonally adjusted real GDP for the first quarter of 2009 decreased by an annualised rate of 6.4% compared to the fourth quarter of 2008. Manufacturing, mining and finance, real estate and business declined by 3.3, 1.7 and 0.5 respectively in the first quarter of 2009. This is the first instance of two consecutive quarters of negative growth since the fourth quarter of 1992. South Africa’s GDP is projected to fall 1.5% this year before growing 2.3% next year. Unemployment increased from 21.9% in the fourth quarter of 2008 to 23.5% in the first quarter of 2009. Most job losses occurred in trade (143 000), construction (65 000), and agriculture (26 000). The Kagiso Purchasing Manufacturers Index (PMI) for June 2009 increased slightly for the second consecutive month to 37.9 points from 37.3 during May. This confirms a bottoming out of the index in May. FNB/BER Consumer Confidence Index (CCI) in quarter two of 2009 rose by three index points from +1 during quarter one of 2009 to three index points, reflecting the positive cumulative effect of the interest rate cuts since December 2008. But the RMB/BER Business Confidence Index (BCI) remained resilient as it declined by one index point during the second quarter, down to 26 from 27 during the first quarter. This reinforces the perception that the economy is approaching the lower turning point of the business cycle.

104 105 Highlights and Challenges Overall, several achievements and progress have been made by the City throughout the year. The long term goal to support the emergence and growth of the BPO industry will soon be achieved with the identification of the BPO Precinct. The Mayoral Committee approved the shortlist of three locations and the Wemmer Complex in Region F was selected. Due diligence has begun. The Orange Farm Techno Hub is being renovated to provide ICT and business services skills training to the community. The Department is facilitating stakeholder forums in manufacturing with small automotive and furniture manufacturers from Alexandra. The Johannesburg Shopping Festival (JSF) will be held in September 2009. It is being marked by activities such as the launch of a new logo, and distribution of marketing flyers to participating malls including Oriental Plaza, Maponya Mall, Westgate, Southgate. Tours continue to African countries to promote the event, with airlines, including buses, and accommodation owners also agreeing to become official partners of the JSF.

Funding was received from Development Bank of Southern Africa (DBSA) to begin the financial and business modeling for the decking of the railroad “gulch”. This is the area between Braamfontein and the CBD, as well as the industrial property that stretches between Doornfontein and Fordsburg. It holds massive potential to provide the City of Johannesburg (CoJ) with tremendous long-term opportunities for the exciting new Inner City development and regeneration. Planned properly, by making use of space above the railway lines in the form of decking technology, the area can provide a viable economic development zone, with an exciting mix of business, entertainment, housing, shopping, tourism and regional Transport uses. The conceptual model was approved in June.

A cumulative figure of approximately R7bn investment has been achieved in the UDZ, beating the R6bn target. Other achievements include the approval of the proposed mixed use development called “Oasis in Soweto Initiative” that will change the way people work, live and play in Soweto.

The sector facilitated the management of informal trading within a 1km radius of the stadia during the Confederation Cup. It also facilitated the training and accreditation of 128 cooking traders by Environment and Health.

Budget constraints impact on implementation of the sectoral programmes and projects. Financial institutions and investors who are key stakeholders in the economic development process of the City and the Country at large still remain risk averse, which has resulted in the postponement to launch the R1bn “Jozi” SMME Equity Fund and the Soweto Empowerment Zone (SEZ). Attracting local and foreign direct investment, particularly in growth sectors such as manufacturing, is also slow.

Performance against Delivery Targets Table 4.5: Economic Development Performance against Delivery Targets

IDP Programme 2008/09 Delivery Agenda Actual Performance

Five-Year Strategic Objective Expand the total volume and value of exports of goods and services in real terms Economic Connectivity Implement the decking of the Completed a business and financial model Programme railway lines projects that will for the decking of the railroad gulch accommodate the ITSC and Continuous engagement with DBSA for other property development funding initiatives

106 107 IDP Programme 2008/09 Delivery Agenda Actual Performance

Promote business tourism Bidding initiation for major Initiated three bids; through information international events and Investigating development and provision, the conference conferencing implementation of an integrated skills bureau, etc. development programme focusing on the tourism industry Attract at least five major The City won and attracted more than business events in the City five conferences and events, including the Miss World Pageant 2008 and the Tourism Business Conference Facilitate large inward Drive export readiness by Developed export promotion strategy investments through implementing productivity and information provision and competitiveness improvement 75 new SMMEs recruited for export- targeted facilitation support projects in about 150 firms oriented training and 14 attended the Tshwane International Trade and Investment Conference Attract at least two large Attraction of FDI has been a challenge to medium (foreign direct because of the economic downturn Investments) FDI to the City Five-Year Strategic Objective Improve profile of Johannesburg, both on the continent and internationally, as a core centre of finance, business and trade International positioning International investment road Drafted the targeted investment promotion programme show to at least two continents strategy showcasing the CoJ as a credible Liaise with key partners in investment area Developed and implemented the marketing the business community to and brand strategy define what the City can do over the longer term to Showcased the City and participated in help consolidate, protect various international and local road shows and enhance Johannesburg’s and exhibitions position as an internationally Positioning of Johannesburg Drafted the targeted investment promotion recognised finance and as a centre of investment strategy business centre and to attract at least 30% international finance; and a Developed and implemented the marketing variety of scarce skills in the and brand strategy property and construction transactions on CoJ land, Showcased the City and participated in estimated to yield R3.5bn various international and local road shows private sector investment for and exhibitions 2008/09 Five-Year Strategic Objective Measured increase in sector diversification and growth in sectors targeted for City support

106 107 IDP Programme 2008/09 Delivery Agenda Actual Performance

Support tourism, and Implementation of tourism 100% implementation of the 2010 tourism especially the emerging key projects/action plans in action plan tourism sector, by preparation for 2010, including developing a well-publicised accommodation in line with 2010 Tourism Strategy approved Johannesburg tourism MATCH/FIFA requirements, package targeting the local tourism attractions, actions for and international markets fans and media, and a legacy component

Roll out Tourism Signage Plan Tourism Signage Plan approved

847 of 1 000 targeted signs installed. Target not achieved due to budget withdrawals Roll out of the marketing and Developed and implemented the marketing branding strategy and brand strategy

Roll out of tourist packages 100% implementation of the 2010 tourism package Profiling of CoJ both domestic Showcased the City and participated in and internationally through various international and local road shows ongoing exhibitions and and exhibitions advertising Support the emergence and 3 000 call centre trained agents BPO Skills Hub not yet operational. Plan to growth of the BPO industry train 2 000 learners in 2009/10 (Revised to 2 000 in Business Plan) Two international captives/ Identified the BPO precinct outsourcers located in the Inner City and minimum 1 000 seats 1 000 new seats in the Inner City committed to the Inner City, alternatively, new investment of up to R20m Investment facilitation: R150m Identified three investors through investor investment attracted and 3 000 facilitation jobs created R100m inward investment attracted

108 109 IDP Programme 2008/09 Delivery Agenda Actual Performance

Through a process Packaged support to selected Finalised the Economic Development Policy of rigorous ongoing declining industries (technical and Strategy Framework and the Investment assessments, identify other support, quality production) Incentives Policy Framework industries to support and to ensure sustainability of appropriate methods to enterprises and job retention support them (other sectors Facilitate a package of support Finalised report and strategy incorporating include wholesale and retail, for targeted industry of small the Investment opportunities and medical health and property) manufacturing enterprises, implementation programme for the Urban such as Fashion District, Jewel Agribusiness Initiative District, Agriculture and Agro processing, home industries and Support strategy to assist jewellery industry other cooperatives during economic crisis has been drafted

Budgetary constraints led to reallocation of funds away from the Fashion District Development Project Support manufacturing and Drafted action plan in support of mining sector as non-performing manufacturing co-operatives and SMMEs sectors in the City Budgetary constraints led to reallocation of funds away from the mining beneficiation project Support the information and Expand JCSE ICT training Alteration began in Orange Farm in communications technology offering into the ICT community preparation for the creation of an ITC sector within Soweto and other CoJ Techno-Centre Priority areas

Deliver connectivity to digital Assessment of Free Telkom Zones to be divide projects i.e. schools, integrated into the Joburg Broadband libraries, skills centres, Network Project community centres and ICT hubs 100% roll out of the Broadband Network according to annual deliverables Five-Year Strategic Objective Reduced rate of closure of companies in the City

Industry Restructuring Implementation of Marlboro/ Completed four of seven phases of a Support Programme Wynberg economic plan feasibility study, in consultation with neighbouring municipalities, on the Facilitate and support the expansion of Lanseria Airport restructuring of older and Development of an Finalised the Young Entrepreneurship Policy declining industrial areas, Entrepreneurship Policy Framework to provide industrial space Framework more conducive to industry (In Business Plan) regeneration Citywide Township Economic Completed implementation plan Development Programme (In Business Plan) Citywide Industrial Parks Support Completed an Industrial Parks Study, Programme with resource mobilisation to direct the (In Business Plan) implementation plan

108 109 IDP Programme 2008/09 Delivery Agenda Actual Performance

Five-Year Strategic Objective Greater proportion of goods and service inputs required by City firms sourced within the South African economy Five-Year Strategic Objective Increased number of defined beneficiation projects facilitated by the City

Beneficiation Programme Establish a panel of 100 Budgetary constraints led to reallocation of potential SMMEs for mining funds away from the mining beneficiation Where appropriate, work beneficiation, in particular project with larger businesses to design jewellery making, encourage beneficiation (for polishing with linkages to the Drafted action plan in support of example, by facilitating the Jewel City manufacturing co-operatives and SMMEs growth of high-value added manufacturing, tourism and Support strategy to assist jewellery industry creative industries, such as during economic crisis has been drafted Jewel City) Through the skills hub Budgetary constraints led to re-allocation of implement skills development funds away from the mining beneficiation packages targeted at SMME project beneficiation programmes Identification of benchmarks of Support strategy to assist jewellery industry Jewel City Precinct during economic crisis has been drafted Five-Year Strategic Objective Reduced cost of doing business in the City on an index of micro-economic constraints (as measured by a two-yearly City-specific micro-economic constraints survey) Conducive Environment Roll out the Free Telkom Zones Assessment of Free Telkom Zones to be Programme integrated into the Joburg Broadband Network Project Facilitate the extension of Establish a Telecoms office Awaiting staff secondments to the Telecoms cost-effective broadband with the focus to license to Assets Office ICT infrastructure to all use City-owned assets, as well businesses as consolidate the ownership of City owned assets by implementing City driven policy Implement broadband packages 100% roll out of the Broadband according to support economic growth to the annual project deliverables and digital connectivity to poorer areas, as well as government services Five-Year Strategic Objective Increased in City’s spending to specific targeted companies owned by specific categories of HDI (BEE, women, people with disabilities, youth and so on)

110 111 IDP Programme 2008/09 Delivery Agenda Actual Performance

BEE Support Programme Ongoing maintenance, Finalised project plan registration and verification of Expand and widely market current BSD the current BEE database Establish the SEZ as the core The economic downturn has had negative source for goods and services impact on the development of the SEZ Expand and continuously procured by the City, as well as Ongoing engagements with various refine the City’s own other spheres of government institutions and government departments targeted procurement for utilisation of service providers within and marketing of the SEZ Packaged support to selected Development of second Economy Policy declining emerging industries Framework and Implementation strategy (technical expertise, quality deferred to 2009/10 due to financial production) to ensure constraints sustainability and job retention with external partners Utilising the Jozi equity fund Project details and grant agreement have for targeted projects driven been finalised. or owned by the City and The launch of the Jozi Equity Fund has undertaken by SMMEs been postponed because of the economic downturn. However, engagement with potential funders and investors continues Utilising the Community Bank to Launch of Community Bank planned for support the establishment and 2009/10 growth of informal businesses in Established implementation steering the City committee and work streams Continuous engagement with potential funders Currently seeking legal opinion on the City’s involvement in a project of this nature Where feasible and Promote the Jozi Equity Fund Project details and grant agreement have appropriate, work with as a partnership venture with been finalised the agencies established other SOEs, for example IDC The launch of the Jozi Equity Fund has by other spheres of and DBSA, to support HDI been postponed because of the economic government to ensure that entrepreneurs downturn However, engagement with HDI entrepreneurs have potential funders and investors continues access to other institutional Attract the SEZ and other The economic downturn has negatively and financial support programmes to set up for HDI impacted on the development of the SEZ support, such as Umsobomvu Nevertheless, there are ongoing NEF, SARS and others. engagements with various institutions and government departments for utilisation of service providers within and marketing of the SEZ Five-Year Strategic Objective Increased role of co-operatives in the City’s economy, and increased number of informal traders in City managed market spaces, ‘graduating’ into formal businesses

110 111 IDP Programme 2008/09 Delivery Agenda Actual Performance

Informal and Community Roll out four additional Linear Completed Hoek Street 1 Linear Market Sector Support Programme Markets Quartz Street segments two and three were Redefine and scale up the (Revised to five in Business Plan) 95% complete City’s current Informal Trade Development Programme to Fordsburg 50% complete ensure that informal traders benefit form a system that Hoek Street 3 expected to be complete by facilitates their stabilisation December 2009 and, where possible, Train at least 3 500 informal 100 traders taken through ABET and graduation to the formal traders in business management awarded certificates sector skills 101 Traders trained under this initiative Facilitate ABET implementation amongst 300 traders (Business Plan)

Continue to implement the Grow Your Own Business for 500 Traders. (Business Plan) Issue (3 600 in Business Plan) 2 684 smart cards were issued smart cards to trained informal traders Continued implementation Completed RFP for the development of an of Informal Trading Policy implementation plan Framework that incorporates Linear Markets, marketing, and addressing skills development Implementation of By-law By-law Review Report approved Enforcement Framework that includes street trading by-laws and ensures that all street stalls are replaced with Linear Markets Facilitate registration of 100 Approval of cooperatives strategy new co-operatives and provide 39 co-operatives established 20 Close targeted training in business Corporations registered management and technical skills

(Revised to establishment of 20 new co-operatives and registration of 30 Close Corporations in Business Plan) Facilitate five job creation Jobs created through the EPWP initiatives Facilitate the development of an Completed incubation facility for traders. (Business Plan)

112 113 IDP Programme 2008/09 Delivery Agenda Actual Performance

Five-Year Strategic Objective Increase in the rate of formation of new businesses

Emerging Industries Support Maintain support for small No businesses received funding support due Programme businesses and improve tracking to the effects of the economic downturn systems of sustainability of Facilitate development of business benefiting from current contractors into business support sustainable small-business Introduce to the SEZ sector The economic downturn has negatively (in construction and champions supported by SMME impacted on the development of the SEZ materials supply sector) identified from Soweto involved Nevertheless, there are ongoing in small scale manufacturing, engagements with various institutions and logistics, warehousing, government departments for utilisation of packaging, automotive, service providers within and marketing of furniture, property, and medical the SEZ equipment (retail) Facilitate access to R1bn BEE value creation from Leveraged R8.896bn BEE value creation commercial and industrial R3.5bn private sector property from private sector property construction property more suitable to construction investment investment the space requirements of start up firms (Revised to R2.5bn BEE value creation from R5bn private sector property construction investment in Business Plan) Support the development of Implement the three-year Approval of the Action Plan (July 2008) emerging industries through Broad-based Black Economic the City’s own targeted Empowerment Action Plan procurement Five-Year Strategic Objective Economic base of under developed areas of the City increased over five years

Area based Economic Accelerate the roll out of the SEZ 100% implementation of the Soweto Development Programme Economic Development Plan (SED) Identification of high-value Orlando eKhaya 90% complete Design and roll out an and high-impact projects like Rietvlei 70% complete intervention strategy Orlando, eKhaya, Rietvlei Zoo within townships and Farm, and Johannesburg Water underdeveloped areas, e.g. Farm, as catalyst developments the Alexandra Renewal to attract investment in the Programme, Soweto South of the City Development Initiative, and the Soweto Empowerment Initiative, to accelerate economic development

112 113 IDP Programme 2008/09 Delivery Agenda Actual Performance

Market and implement Re-launch and market the UDZ R0.7bn was attracted into the City, bringing the Inner City Urban incentives in the Inner City the accumulated investment to R7bn Development Zone Attract R5bn in investment R0.7bn was attracted into the City, bringing the accumulated investment to R7bn (100%) Implementation of 90% creation of the Property Scheme Inner City Property Scheme, incorporating Sectional Title owned property regeneration Implementing the high rise- Precinct plan not developed due to funding building precinct based on office constraints space requirements of the City Implement the second Airport initiative approved airport economic study recommendations Investigate feasibility and, Implement the decking of the Completed a business and financial model where appropriate, design, railway lines for the decking of the railroad gulch and roll-out key economic Continuous engagement with DBSA for infrastructure and other funding support in areas of future economic opportunity, notably KyaSands/Lanseria and in and around the Gautrain stations Five-Year Strategic Objective Increased number of beneficiaries reached by City facilitated skills development initiatives Skills Development Support of military veterans Phase 2 of the RPL Project which targets the Programme in start up and emerging RPL’ing of up to 1 000 veterans to begin in businesses with skills entering 2009/10 Develop a City skills strategy into labour market focused on the skills supply / demand chain, first lends to the identification of a list of critically scarce skills in the City, to guide other initiatives Work in conjunction with Ensure the participation of at Skills Hub business case and plan modelling educational institutions and least two major educational approved the business community institutions in the skills to ensure that educational hub providing joint skills Operations of the Skills Hub postponed due institutions supply the development programmes with to budgetary constraints industries with the relevant the City skills Ongoing process of funding about 20 students a year with Wits Plus to supply accounting and business related skills

114 115 IDP Programme 2008/09 Delivery Agenda Actual Performance

Work with universities and Recruit 500 trainees for 2008/09 Engagement with the Vaal University of FET colleges to increase the intake: informal trading sector Technology to develop skills for SMME intake of more learners in development career paths that are linked to current economic skills needs Develop a next generation 30 000 jobs created through the 47 899 jobs created EPWP that expands the EPWP programmes throughout range of training beyond the the City current offerings Develop a well-articulated, Rollout the Labour Market Postponed to 2009/10 financial year widely accessible labour Database in partnership with the market database that private sector facilitates the flow of relevant and strategic labour market information for active and inactive job seekers, and profiles diverse skills levels available With partners, support Create 3 000 jobs the BPO 3 490 jobs created skills development that will centre feed emerging industries Create 30 000 jobs through 47 899 jobs created with large job-absorption EPWP potential (e.g. call centre staff, construction, and telecommunications)

114 115 Developed and maintained beautiful parks and planted more than 60 000 trees

116 117 4.5 Environmental Management Introduction The sector is responsible for sound environmental management through the development of policies and strategies. It is also responsible for the establishment of systems for monitoring environmental trends and changes and the establishment of a reporting protocol.

Summary of Overall Performance The year 2008/09 saw a number of environmental challenges and opportunities, hence a need for the sector and City at large to respond to these challenges and seize opportunities presented. The sector has made considerable efforts to respond accordingly through the implementation of its 2008/09 sector plan programmes, most of which are ongoing. Some of the interventions are summarised below:

The sector facilitated and coordinated the Gauteng Climate Change Response Policy in collaboration with SALGA towards the development of National Gauteng Climate Change Response Policy. A number of climate change mitigation and adaptation programmes were initiated, such as determination of flood prone areas; completion of climate cost benefit analysis and adaptation strategy; climate proofing for Cosmo City (solar water heaters and rainwater harvesting); BRT emissions reduction programme.

Water quality remains a challenge for the City and the country as a whole. Considerable work was done towards improving integrity of water courses and these include extending existing EPWP river clean up programmes to identified hotspots areas (Bosmont; Mshenguville; Diepsloot; Kaalspruit; Alexandra), ongoing maintenance and clean up of at least eight wetlands and water bodies; construction of about five weirs in the upper Jukskei River as part of rehabilitation of the river.

Significant work has been done to reduce air pollution sources from the domestic sector, with the implementation of Basa njengo Magogo programme, reaching more than 36 000 households (Soweto, Alex and Lenasia) between May 2008 and June 2009. The sector recently completed an assessment of the impact of this programme since its implementation in Soweto. The assessment indicated the effectiveness of this programme in reducing air emissions, but ongoing education and awareness is required to sustain it.

The sector ran a successful campaign in recovering waste from major events, including the FIFA Confederations Cup, for recycling/re-use purposes, with more than 4 800 tons collected. This is set to continue to prepare the City for managing waste during the 2010 FIFA World Cup. Great strides have been made in implementing a waste minimisation strategy for Region F through awareness campaigns and capacity building targeting citizens, recyclers, reclaimers and buyback centre operators and registration of SMMEs.

The Johannesburg Zoo had more than 500 000 visitors during the period under review and more than 170 000 learners made this visit as part of biodiversity education and awareness programmes.

The sector is on track for the tree planting programme, which aims to plant 200 000 trees in previously disadvantaged areas by 2010. About 60 129 trees were planted during the period under review covering areas in Soweto, Orange Farm and Lenasia. Progress has been made with the implementation of the Klipsruit/Klipriver Greening Programme with two nodes (Dlamini and Mofolo nodes) completed and work done included development of ecoparks and subsequently improvements of nearby water courses.

The sector continues to monitor and report on compliance of City’s CAPEX projects, strategic projects and private development to environmental requirements. This is supported by capacity building training provided for planners on environmental requirements. Although there have been cases of non-compliance on both CAPEX and strategic projects, average compliance has been satisfactory, exceeding 85%.

The 2008 State of the Environment Report, which assists the City in tracking trends with the use of key environmental indicators, was successfully completed.

116 117 Performance against Delivery Targets

Table 4.6: Environmental Sector Performance against Targets

IDP Programme 2008/09 Delivery Targets Actual Performance Five-Year Strategic 10% improvement in the integrity of water courses Objective 10% improvement in river health 10km of watercourses rehabilitated Two water bodies rehabilitated for ecological and recreational purposes 10% improvement against water quality requirements set for the river reserve Action plans implemented to address pollution hotspots Ecological reserve Environmental engineering Work concluded towards rehabilitation of upper Jukskei preservation interventions to River, this included construction of five weirs and bank programme rehabilitate degraded stabilisation within approximately one (1) kilometre river and river health watercourses in Jukskei stretch. This will significantly improve downstream water programme and Klip River catchments quality (particularly suspended solids and turbidity)

Facilitation and co- Rehabilitation of Mofolo South (9.48 ha) and Orlando/Dube ordination of Klip River/ (9.22 ha) nodes completed with ecoparks developed Klipspruit Project Additional river clean ups within KK corridor undertaken targeting areas affected by Soweto floods Jukskei River clean-up Upper Jukskei litter trap - an average of 20 tons a month programme removed (litter trap) during wet seasons. operations and 310 tons of waste were removed through the upper Jukskei maintenance of litter traps EPWP river clean up programme, which was also supported Jukskei River EPWP based by door to door education campaigns. 80 people were river clean up employed in the programme Implementation of Catchment management policy guideline documents and catchment management capacity building booklet completed and work-shopped with policy and Stormwater affected Departments and entities Management By-laws Implementation and Review of current water quality monitoring programme enhancement of current has been completed. Work done included assessment of water monitoring compliance of sampling techniques (Environmental Health) programme and analysis (Cydna Lab) to applicable standards and establishment of groundwater monitoring Implement hotspots Ongoing interventions in the following water quality programme according hotspots areas: to the hotspot action Alex/Wynberg Area plan. Investigation Princess Dump and escalation of non- Kaalspruit compliance issues relating Bruma Lake to water quality Zoo Lake, Mshenguville Bosmontspruit Diepsloot Freedom Park Water Quality Action Plan on the hotspot areas developed and Water Quality Multi task team formulated to ensure implementation and monitoring of progress on the implementation of the action plan

118 119 IDP Programme 2008/09 Delivery Targets Actual Performance Maintenance and Over 1 100ha of river trails cleaned covering areas such as upgrading of bird Sandspruit, Braamfontein Spruit, Ferndale Spruit, Outspan sanctuaries, river trails and Spruit, Umhlanga Stream, Moffat View Stream, Klein Jukskei eco. corridors River, and Jukskei River. Work done included litter and debris control, reeds maintenance and grass cutting Identify major sources Monthly site inspection meetings conducted by of illegal sewerage and Environmental Health for compliance in terms of permits industrial discharges, issued to the industries to discharge into the sewer system and institute rigorous and fines issued in a case of non-compliances enforcement of legislation and by-laws to reduce pollution levels Five-Year Strategic 100% completion of wetland audit for protection of wetlands Objective five wetlands rehabilitated for aquatic habitats and watercourse Management Completion of wetland The wetland protection and management plan has been of wetlands audit and develop and completed and identified and prioritised wetlands based programme implement a management on geological formation (which plays a role in wetlands plan that limits pressure of simulation capacity) and biodiversity information. The plan development is a continuation of wetlands audit study completed in 2007/08 financial year and will be incorporated into RSDFs for implementation Development and Rehabilitation plan for Lakeside/Orange Farm wetland already facilitation of the initiated, some studies are to be conducted during rainy implementation of season according to Gauteng department of agriculture, wetland rehabilitation conservation and environment (GDACE) requirement hence plans and obtaining of the plan anticipated to be finalised during the second quarter authorisations of 2009/10 financial year with actual rehabilitation (CAPEX programme) to commence in the third quarter of 2009/10 financial year Removal of alien invasive Ongoing cleanup and maintenance which included alien plants from water bodies invasive removal (hyacinth and kariba weed), reed control, (mainly Hyacinth) and litter and debris control and grass cutting. Wetlands and Maintenance and control impoundments covered include Blue Dam; Florida Lake; of reeds Jukskei Park; Vorna Valley; Hamerkop; Witkoppen Dam; Dorothy Nyembe; Mofolo; Westdene Five-Year Strategic To increase the total land area proclaimed as conserved area from 1.3% to 5% of the city’s Objective total area

118 119 IDP Programme 2008/09 Delivery Targets Actual Performance Biodiversity Implementation of the Biodiversity Management Strategy and Action Plan has been protection Biodiversity Management concluded. Several actions were identified and prioritised programme and Protection Tools for for short, medium- and long-term such as education the City and awareness, integration of biodiversity management requirements into the City’s planning and budgeting processes; wetlands protection and creation of information management system or database Three areas are in the process of formal proclamation i.e. Kloofendal 156ha, Klipreviersberg 680ha and Melville Koppies150ha, totalling 986ha of land 2 202ha cleared of alien vegetation through Working for Water and JCP focusing only on public open spaces such as ridges and water courses Development of ecoparks Rehabilitation of Mofolo South (9.48ha) and Orlando/Dube (9.22ha) nodes completed with ecoparks developed as part of Kliprivier/Klipspruit Greening Project Development and Eco-tourism business cases developed for JHB Zoo and City implementation of Eco- Parks and both companies continues to market their activities Tourism initiatives as part of eco-tourism initiatives Development and Programme deferred due to funding constraints implementation of conditions and guidelines for green component to be incorporated in the environmental resource efficiency guidelines and standards Five-Year Strategic To enhance the city’s bio-diversity through the Zoo, Botanical Gardens and nature reserves Objective (green belts). Johannesburg Increase in the number of 1 834 animals at the Zoo, challenge in meeting the target Zoological and animal collection from due to infrastructural challenges in accommodating new Botanical Gardens 2 700 to 3 500 animal collections, however a number of infrastructure upgrades such as elephant and seal enclosures underway and animal collection anticipated to increase animal collection but target revised down to 2 100 animal collection Increase in visitor numbers More than 500 000 visitors visited the Zoo (512 773) and at the Zoo to 480 000 more than 170 000 learners visited the Zoo Five-Year Strategic To establish a network of open spaces that contributes to social and environmental Objective opportunities. Metropolitan Zoning of selected priority None of the identified open spaces could be rezoned due Open Space open spaces to inadequate funding for the programme but some of the System identified open spaces are due to be re-zoned in 2009/10 Implementation financial year Programme Implementation of Open space management framework and guidelines JMOSS and Open Space completed and already implemented in approval for new Management Framework developments Facilitate the greening Ongoing programme, with greening requirements imposed of cemeteries and other through RSDFs and new development application infrastructure Prevent developments on Same as above ridges

120 121 IDP Programme 2008/09 Delivery Targets Actual Performance Five-Year Strategic To increase the number of trees on sidewalks and in parks and private properties Objective by 200 000 City Greening Facilitate establishment of Nursery 100% complete and currently used as a holding and Programme nursery in Soweto transfer nursery for Greening of Soweto Project Tree planting in identified 60 129 trees planted during period under review bringing the areas – 62 000 trees in total to154 264 trees planted against a target of 200 000 by Soweto, Alexandra and 2010. Although there is under variance of about 830 below Orange Farm target of 62 000, the programme is on track to meet the target of 200 000 trees by 2010 Five-Year Strategic 5% Reduction in air pollution levels from a baseline index of (2005), within specific Objectives pollution categories. Air pollution Continue with 16 270 more households between Alexandra and Soweto are prevention demonstration projects part of Basa Njengo Magogo (BnM) programme, which aims programme and trend analysis to to reduce domestic fuel burning emissions check if AQ is improving Rollout of BnMat Lenasia underway with 3 500 households covered Conversion rate study (uptake study) in Soweto completed. The uptake study showed that the programme is effective but require continuous education and awareness programme to sustain Enforcement and Ongoing industrial audits/inspections to assess compliance compliance of vehicle with national legislation – more than 30 inspections and industrial emissions conducted during period under review standards Dispersion modelling Dispersion model completed (forecasting) to inform planning Update emissions Work to collect Greenhouse Gas (GHG) emissions underway, inventory- EMIT; for proper there is still a challenge with availability of data but study to air quality information be completed soon management Expand, improve and Ongoing programme which includes collation, analysis and maintain air quality interpretation of air quality data for air stations as well monitoring network as general maintenance of stations, the programme has been expanded to include the two new air quality stations procured in the previous financial year Development and The programme now forms part of the environmental implementation of air integrated information system currently being developed quality permitting system Five-Year Strategic 15% reduction in tonnages of waste disposed to landfill based on 2006/07 Objectives

120 121 IDP Programme 2008/09 Delivery Targets Actual Performance Waste Establish and operate four Four buy-back centres were established and already minimisation buy-back centres (Alex, operational during the period under review: (Alex, Orange programme Orange Farm, Cosmo and Farm, Cosmo and Inner City) Inner City) to encourage waste reduction at source Waste data capturing The waste information system has been developed and and analysis to inform incorporates the SMME database. The system serves as planning and decision- an interface between the City and waste service providers making in the City and allows for service providers to check their registration progress and status; registration queries and uploading of information such as waste recovered and/or waste transported to the landfill site Continue with registration, More than 400 vehicles were registered during the period licensing and tracking of under review waste service providers in order to reduce illegal dumping Continue with monitoring 2 354 fines were issued mainly for illegal dumping and and enforcement of waste corrective action facilitated operators Continue with waste More than eight tons of paper collected for recycling at separation at Metro Metro Centre Centre Develop guidelines on Waste minimisation guidelines developed and currently being waste minimisation at implemented. The guidelines are incorporated to all major major events in order to events through Joint Operations Committee (JOC) for Events reduce the amount of waste to landfill Roll out of recycling More than 4 800 tons of waste recovered during major interventions during major events. Bulk of tons were collected during the FIFA events Confederations Cup 2009 Waste management Waste minimisation awareness messages played during major education and awareness events at Ellis Park Stadium as part of waste minimisation campaigns education and awareness campaign At least four programmes are being implemented as part of Region F Waste Minimisation Strategy, this include SMME database development, capacity building and training of trolley brigades on waste handling; guidelines for operation of buyback centres targeted at recycles and buyback centre operators; education and cleanup campaigns. 150 more bags of waste collected during a clean-up campaign in collaboration with Horizon International School (Turfontein) Investigate the feasibility This work forms part of the review of the integrated waste of material recovery management policy and plan, which is currently under versus the current waste review management mechanism in the community, as well as MEs

122 123 IDP Programme 2008/09 Delivery Targets Actual Performance Five-Year Strategic 2% reduction in GHG emissions through flagship projects Objectives Climate change Facilitate implementation Three sectors identified for cleaner production opportunities mitigation of cleaner production i.e. incinerators (PikitUp), crematoria (City Parks) and programme (resource efficiency) of the boilers (provincial hospitals). Final report with data analysis City’s MEs and industries (stack emission measurements) and recommendations for operating within the City interventions from all sources has been completed and made available to affected sectors Facilitate the Energy efficiency guidelines completed and published, the implementation guidelines guidelines are currently voluntary and give guidance to for energy efficiency developers/architects on designing buildings which minimise design and construction energy requirements for new development The City has also developed criteria for promotion of energy (buildings) efficiency in land use development application. The criteria will be used as a tool for assessment of the application and considers things such energy consumption, public transport, natural ventilation, rainwater harvesting, building form and orientation, and onsite renewable. The criteria will be incorporated into the SDF (DPUM) Implement measures to Work already started towards greening of BRT fleet; fleet to reduce greenhouse gas be procured is eco-friendly Euro-3 diesel standard. Approval emissions in the transport has been sought with a relevant institution to recognise sector (BRT) the project as a CDM project. Further work is underway to establish GHG baseline data along BRT routes, which will be used to compare with after the implementation of the system to assess changes in the emissions Five-Year Strategic To improve City’s resilience to climate change impacts Objective Climate change Climate change adaptation Climate change adaptation plan completed adaptation plan/strategy for climate programme change impacts Data base on flood prone Work completed include digital terrain model creation and areas/studies to determine flood plan calculation, GIS data and overall analysis on the insurance rate. Assess gathered data, the study will inform the city-wide floodline possible strategies to areas protect against flooding and provide against flooding and provide recommendation Five-Year Strategic Demand-side Management Objective Demand Side Develop by-laws based Development of demand side (energy) by-law underway. Management on energy efficiency The by-law will support energy efficiency guidelines recently (energy, waste guidelines developed. The by-law anticipated to be completed during and water) 2009/10 financial year

Five-Year Strategic Establish and strengthening institutional mechanisms to implement environmental Objective strategies within the City To integrate environmental best-practices and principles in key city plans and programmes

122 123 IDP Programme 2008/09 Delivery Targets Actual Performance Mainstreaming Integrate sustainability Air quality trends analysed and reported quarterly of environmental indicators into the Study commissioned to establish the ecological footprint issues citywide business plan and of the City, which will include indicators to be integrated programme reporting into day-today data collation and reporting. This work further links to the State of the Environment Report recently published and launched Continue with Five demand side related projects implemented as part of implementation of the Environmental Management System (EMS) i.e. paper the EMS and facilitate recycling; education and awareness on EMS, energy implementation by MEs efficiency campaigns; water conservation education; development of green procurement guidelines Further legal register reviewed as part of EMS implementation Continue implementing Environmental education, capacity building and awareness the Integrated Education initiatives conducted during the period under review: and Awareness Biannual Departmental Newsletter; Programme World Wetland Day Celebration, awareness and wetland cleanup in Alex – linked to the GDACE/CoJ EPWP partnership river cleanup along the Jukskei; Launch of EPWP Upper Jukskei River clean up in March; Workshop in Lenasia and Soweto for the Domestic Fuel Burning; Climate Change Summit Conference in March at Gallagher Estate; and Environmental Awareness Raising during the Stakeholders Summit Provide input into RSDF’s, Ongoing input into RSDF’s and IDP development process. IDP development process. Commented on 824 applications, of which 236 applications Streamline existing plans/ were related to the EIA process and the remainder of 588, policies/ strategies to were town planning applications including SDPs inform RSDF’s (GIS spatial Input made towards the nine Urban Development layer) Frameworks and precinct plans; including inputs on RSDFs for the 7 Regions of the City Key environmental Study on key environmental requirements completed and requirements for identified outcomes to be incorporated into RSDFs City’s growth areas and flagship projects

124 125 IDP Programme 2008/09 Delivery Targets Actual Performance Legislative and Promulgate the waste, All three by-laws (waste, air quality and storm water) are policy reform air quality, tree and out for public comments and there was poor response from programme Stormwater by-laws public consultation process on all three draft by-laws which delayed promulgation. These will be sent out for comments again and notice will be extended to other newspapers Draft tree by-law recently completed Continue implementation Continued to provide environmental input into town of the Environmental planning applications, precinct plans, development Management Framework frameworks and plans, including input into the RSDFs

Five-Year Strategic 90% compliance to environmental legislation to ensure continual improvement of the Objective City’s projects Compliance Continue with EIA Department continues to monitor compliance of City’s monitoring screening for CAPEX CAPEX projects to EIA requirements and advise the programme projects of entities implementing departments and MEs. Non compliances have been discussed with affected Departments/entities and further escalated to GDACE where applicable Continue with compliance Similarly work continues to monitor compliance of flagship monitoring of Cosmo City, projects to EIA requirements and follow up on identified Alex and Gautrain corrective actions also undertaken. Explore opportunities for Department currently reviewing its role as a regulator within delegation of EIA the City, this will include identifying opportunities for delegation of EIAs and there is ongoing engagement with Province on this regard Five-Year Strategic To develop and maintain an integrated environmental management information system Objective Scientific data Launch the State of The State of Environment Report 2008 was successfully management Environment Report launched during the World Environment Week – 10 June systems in respect 2009. The report highlight challenges faced by City in terms of air, water of energy, air pollution, water pollution amongst other and waste and issues and provide recommendations for improvement of analysis of trends environment and tracking of changes thereof to inform future Design and maintain an Work underway to develop an integrated information planning and integrated information management system, business case already developed decision making management system

124 125 Total revenue increased by 15%

126 127 4.6 Financial Sustainability Introduction The Financial Sustainability sector is the engine that provides strategic leadership in co-ordinating the City’s efforts through formulation and enforcement of policies, rules and regulations to facilitate its financial sustainability. This sector also provides good governance and appropriate, equitable and affordable service to the City’s citizens. It is also responsible for ensuring financial balance between the municipal entities and core administration as well as compliance with relevant legislation, regulations and governance practices whilst ensuring compliance with the Municipal Finance Management Act (MFMA).

Summary of Overall Performance It has been a challenging year for the sector considering the current economic crisis which negatively impacts on revenue collection as customers struggle with payments during such periods. High on the sector’s agenda is the implementation of the new Municipal Property Rate Act as well as integration of the City’s billing system. Performance highlights of this sector include:

• Programme Phakama completed and City ready for roll out of the programme to commence during the 2009/10 financial year. System design was completed during the period under review and pilot testing successfully completed to assess the programme’s readiness for implementation;

• Great strides made in the implementation of the amended Municipal Property Rates Act. The City has implemented the first supplementary valuation roll to supplement the new general valuation roll. Objections received were 22 448 and were completed by valuations and notifications issued to objectors. Of the total objections received, 11 309 were for review. There has also been ongoing communication and awareness- raising initiatives, and the City has improved its systems for dealing with queries; and

• The sector successfully reduced the debtor’s book with collection of outstanding revenue monies of more than R2.8bn, exceeding the annual target of R1.8bn. Active customers receiving bills increased from 80% (2007/08 financial year) to 86.43% by the end of the 2008/09 financial year. At least 94.04% rates and refuse account holders received accurate bills, above the annual target of 85%.

Performance against Delivery Targets

Table 4.7: Financial Sustainability Performance against Delivery Targets

IDP Programme Delivery Targets Actual Performance Five-Year Strategic Completion of Programme Phakama reforms to ensure full business process integration Objectives across the revenue value chain

Programme System deployment Institutionalised readiness for implementation of Phakama completed across all City Core Programme Phakama Departments and MEs by 31 System design completed and pilot testing of the system December 2008 completed by June 2009

Finalisation of in-scope staff Finalisation of in-scope staff migration completed migration completed by July 2009 Process and transaction Process and transaction training on track training completed by July 2009 Five-Year Strategic Empowered customers enjoying the highest standards of customer care and Objectives responsiveness

126 127 IDP Programme Delivery Targets Actual Performance Customer Reduce the number of The City achieved 99% (moving average) on customer Management outstanding queries by 3% complaints resolved vs number of complaints received Programme There has also been a significant increase in the turnaround times in respect of refunds issues from 60% (30 days) to 96.7% also exceeding target of 65% Similarly there has also been an increase in turnaround times in respect of clearance certificates issued from 60% to 77.9% (average 30 days) 100% training of personnel There is a significant reduction in the time it takes to at the City’s Customer Service answer calls at Contact Centre – CRC from 93.4 seconds Centres to 64 seconds thus exceeding the target of 90 seconds Continue roll out of Implementation for new telephony systems for the Call optimisation of Customer Centre delayed due to challenges with the identified Service Centres to ensure building for locating the Call Centre efficient service Formalised English scripting Development of scripting for four languages developed completed 2006/07. Scripting (includes isiZulu, Sesotho and Afrikaans) in isiZulu, SeSotho and Afrikaans to be completed by July 2008 Five-year strategic Equitable and competitive tariff system that is informed by national inflation data and objectives targets, comparable metros, and circumstances of citizens to ensure affordability

Tariff Enhance tariff methodology Evaluation on the tariff methodology to assess whether Management and modeling it is relevant to the current changes in local government Programme and is industry specific, has been concluded Ensure compliance to the Finalised analysis of departmental tariff structures in amended Tariff Policy by respect of four policy attributes namely: the City, and continuously • affordability/fairness/equity monitor • sustainability/competitiveness • cost-reflectivity • transparency Workshops were held to critically analyse the proposed tariff model and ensure that it responds to the current challenges facing the City Amendment of tariff policy approved in August 2008 Five-Year Strategic Implementation and management of new Rates Policy and Valuation Roll with minimum Objectives disruption

128 129 IDP Programme Delivery Targets Actual Performance Rates and Taxes Implement MPRA on Venus Staff trained on Municipal Property Rates Act, 2004 and General and then in the outer years (MPRA) implementation Valuation roll migrate onto SAP All the required systems changes to Venus to enable the implementation of the rates policy completed and signed- off Anomalies identified and almost 80% of exceptions have been resolved Give guidance to Rand Credit control reduced in 308 additional areas CRM in the management of property owner accounts to alleviate short term excessive credit control measures

Further development and Rates policy drafted and implemented on 1 July 2008 review of the rates policy, including developments with regard to special rating areas, proposals on density, and linking the policy to geographic areas Embark on a public awareness Extensive communication and consultation to raise campaign with regard to the awareness and educate public about the Act and policy new General Valuation Roll took place Implementation of Implemented the first supplementary valuation roll in supplementary Valuation Roll terms of the Municipal Property Rates Act to supplement adjustments the new general valuation roll, which became effective 1 July 2008 Development of the latest Developed a supplementary valuation roll based on draft version of the Valuation the market value of both site and improvements of all Roll, which could be used for properties that had not been included in the GV roll since rates modeling 1 July 2007 (date of valuation) Inform property owners in Notices were mailed to property owners informing them writing of the valuation of of their new values and the objection process their property Initiate and finalise the The objection process was finalised in March 2009. process of objections to the 22 448 objections were received and completed by draft Valuation Roll valuations and notifications issued to objectors. Of the total objections received, 11 309 were for review Five-year strategic Revenue optimisation objectives

128 129 IDP Programme Delivery Targets Actual Performance Future revenue Reduce the debtors’ book Target exceeded with R2. 87bn collected optimisation by collecting R1.8bn of the programme recoverable portion 100% Compliance with the Fully compliant NCA Increase to 85% active There has been an increase on active customer receiving customers receiving bills bills from 80% (2007/08 financial year) to 86.43% by end of 2008/09 financial year At least 94.04% rates and refuse account holders are receiving accurate bill, above the annual target of 85% Similarly 84.89% of properties metered and billed with accurate bills Continue supporting the Programme supported indigence policy programme 100% continued support in Programme reconstituted into the Inner City Property the implementation of the Scheme Better Buildings Programme, as well as a focus on clearances and refunds in the Inner City Five-year strategic Long term domestic credit rating improvement to at least AA objectives Achievement of clean audit Operation Clean Management of control Action plans have been developed in relation to issues Audit environment to ensure reported by Auditor-General. The process will be followed maintenance of a clean audit up with the assistance of JRAS Procurement Alignment and integration Systems aligned and integrated Protocols, of procurement systems Processes and between Core and MEs Practices Continuous optimising SCM The procedures manual was approved for adoption city- business process wide. These procedures will provide guidance to the City’s officials in the procurement of goods and services, which would serve to improve the governance in the SCM arena Train the trainer workshops have been conducted for the City’s SCM practitioners during the months of July and August 2008 The Sector has issued practice notes to cover the following issues: • Unacceptable increase in deviations and ratifications from prescribed SCM practices • Management of SCM related queries and advices thereof; and • Standard format of submission to Bid Adjudication Committees

130 131 IDP Programme Delivery Targets Actual Performance Internal controls on risk management triggers (red flags) in respect of the procurement of goods on quotations for amounts up to a value of R30 000; amounts greater than R30 000 and less than R200 000 Composition, mandate, role and functions of the Bid Specification and Evaluation Committees and the format of submission to the respective adjudication committees Compliance to SCM policy by all users Reporting requirements in terms of SCM policy Practical use of suppliers on the approved panel – Expenditure payment to all suppliers who have met all the requirements as stipulated in terms of the contract regarding quality, exact specification, etc Full scale implementation of A process flow of the demand management process was demand management and developed: acquisition planning systems To support the process, Acquisition Management Plan and processes for the City templates were developed and distributed to all the internal stakeholders; and Each department populated the Acquisition Management Plans and these were then consolidated and sent to each department for sign-off Implementation of BEE The Supplier Day was held to educate SMMEs on and SMME development procurement processes and to create awareness on the programmes through opportunities available within the City continuous training and Five hundred SMMEs attended the event. Various development of youth, stakeholders were present and they were the Department women, disabled, SMME and of Trade and Industry (DTI), Gauteng Enterprise Propeller BEE Enterprises (GEP), The Business Place (TBP), South African Revenue Service (SARS), Mendi, Gauteng Shared Service Centre (GSSC) and OHASA. MEs were also invited to display and advertise their services to SMMEs Five-Year Strategic Availability of cost-effective capital finance to fund the capital programme Objectives Capital Financing Issue R1bn from the DMTN DMTN programme was updated to include retail bonds Programme annually and explore alternative instruments such as Commercial Paper (CP)

Five-year strategic Over the five year term, an average of 10% citywide capital spending funded through objectives public-private partnerships

Public Private Investigate the best and Investigation is in progress Partnership optimal funding structure Programme for each specific project, depending on future projected cash flows, risk and time lines Five-year strategic Measurable improvements in unit cost and allocation efficiency on a set of key indicators objectives (to be determined)

130 131 IDP Programme Delivery Targets Actual Performance Expenditure Develop an Expenditure Review undertaken review Review document for programme Departments and MEs on an annual basis Introduce additional Completed implementation of ABC at EMS departments to Activity Based Started the implementation of ABC at corporate HR Costing Five-year strategic Sustained excellence in financial management objectives Financial Continue 100% compliance Staff trained to respond to the NCA, monitoring and management to the National Credit Act evaluation against its implementation programme (NCA) Five-year strategic Development of an integrated asset management plan and system objectives Increase the percentage of operating expenditure budgeted and spent on maintenance percentage Asset Continuous update of the Asset register updated for the year ending 30 June 2008 Management movable and immovable asset Reconciled fixed asset register to the Deeds Office and and Maintenance registers the unbundling of townships process is still ongoing Programme The fair value adjustments have been performed on assets Asset register updated timeously, including newly registered properties Develop a system to monitor System developed asset performance and maintenance requirements going forward Develop a medium and The process of reviewing the useful life of assets is long range assessment of currently in place. Investment properties have been maintenance requirements on identified and disclosed separately all current and planned assets, taking into account growth projections, etc Define and develop a Work in progress framework for the City’s infrastructure audit Five-year strategic A budget system structure and format that enables sound resource allocation decisions objectives Budget Reform Develop systems that align Benchmark (salaries to operating expenditure 30%) Programme the financial system (chart of achieved: accounts) to reflect reporting 2008 – 26% programmes in order to 2009 – 28% ensure proper monitoring Continued to improve all financial reporting systems and practices and compliance to relevant regulations in order to reduce annual effort by ensuring over-all budget performance monitoring and reporting Produce quarterly and Produce quarterly and monthly SDBIP reports in line with monthly SDBIP reports in National Treasury circular line with National Treasury circulars

132 133 Continued development and review of various by-laws to ensure compliance

132 133 4.7 Governance and Legislature Introduction The Governance Sector has a critical role of ensuring overall good governance of the City and serves as interface between the political and administrative centres of Council. The programmes implemented by this sector aim to promote governance mechanisms and innovations in the areas of communication, strategic planning, information and knowledge management, legal and compliance and risk management and internal audit. The Legislature ensures proper alignment of policy development, monitoring and evaluation, and alignment of programmes and initiatives.

Summary of Overall Performance The 2008/09 financial year has been an interesting year for the City as it coincided with the mid-term of office of the current political administration. There were also changes brought about by national and provincial elections, pressures to showcase the city as a World-class City towards hosting of the 2010 FIFA World Cup and a number of challenges requiring good guidance and control. The following are a few highlights in the overall performance of this sector:

• The Sector continues to offer support to other Departments in terms of by-law development and review where necessary. The sector reviewed and/or amended more than six by-laws during period under review, two of which have been promulgated (including Property Rates by-laws), while others were at public consultation phase;

• The CoJ Protocol Guide was completed to give guidance and support to both political and administration centres. The newly developed Protocol Guide came in handy particularly during hosting of delegates during the FIFA Confederations Cup 2009;

• The City continues to participate in a number of international programmes with the aim of showcasing the city; establishing relations for possible funding and benchmarking between the City and identified sister cities. Programmes implemented during current financial year include ongoing work to assist Lilongwe on the development of their GDS; and initiation of twinning arrangements between the Dutch Embassy, Luanda and Harare;

• As expected, the CoJ is involved and participates in a number of IGR programmes. The City identified and reviewed all existing IGR forums for better co-ordination and alignment to other government spheres. Further, significant progress has been made with the Thusong Centre and Migrants programme currently implemented in partnership with DPSA;

• The IDP, Service Delivery and Budget Implementation Plan (SDBIP) and Annual Report were formulated and submitted within the required legal timeframes. The sector co-ordinated finalisation and signing off of 105 ward plans with only four ward plans still outstanding and anticipated to be finalised soon;

• The sector reviewed the Performance Management Policy for Section 57 employees, the Policy amongst other things addresses issues raised by the Auditor General during the 2007/08 financial year. Key to the review of the policy was the development of the Group Performance Management Framework, also developed during the period under review to enhance alignment and co-ordination between the City’s core departments and its MEs. Both documents are anticipated to be approved and implemented during the 2009/10 financial year;

• The City continues to participate in the Gauteng City Region initiative and this included assisting the newly established GCR-Observatory in developing a concept and process plan for the roll-out of an OECD Territorial Review in Gauteng;

• The sector successfully compiled and published the Mayoral mid-term report. The report was launched and further distributed to identified stakeholders;

134 135 • The sector proactively ensured extensive media coverage to enhance positive image of CoJ, covering both electronic media and newspapers/magazines. There was particular focus on communicating service delivery related issues such as the City’s readiness in hosting 2010 FIFA World Cup, service delivery mall campaigns and service delivery success stories in all regions;

• The City hosted a successful FIFA Confederations Cup 2009 and was awarded a score of 7.5 out of 10 by the FIFA president. Further good progress has been made in preparation of 2010 FIFA World Cup, with the host city poster completed and launched and ongoing marketing of the event;

• The sector continued to provide internal audit and risk management services, with at least 70% coverage of the annual audit plan. There is an ongoing monitoring and review of 2010 risk register. Further, risk registers were developed for BRT, Phakama and Inner City Property Scheme and will be monitored and reviewed frequently;

• Significant progress made in the provision of necessary IT infrastructure in enhancing coordination between the City and other external stakeholders such as its entities and includes installation of wireless infrastructure for CoJ Core and MEs as well as successful implementation of PikiSAP; and

• An integrated employee innovation strategy and implementation plan developed as part of consolidating current innovation practices within the City. Successful submissions forwarded to CPSI for recognition, lessons and replication and CoJ was the only City which won a number of awards.

Performance against Delivery Targets

Table 4.8: Governance Performance against Delivery Targets

IDP Programmes 2008/09 Actual Performance Delivery Agenda Five-Year Strategic Ensure execution of responsibilities as secretary to the Mayoral Committee Objectives Identify areas for the improvement in support Satisfaction rating conducted on provided to the Political Office Bearers by the advices given to Mayoral Committee Administration and high rating obtained (90%) Five-Year Strategic Ensure execution of responsibilities as Head of Administration Objectives Institutional Attendance and intervention when required Ongoing legal support provided Co-ordination of 2010, Inner City, Programme Phakama and towards achievement of the Inner Improvement PVC/ LIS projects City Charter Commitment e.g. linear Programme markets and housing (Chestnut) Five-Year Strategic Support the Executive Mayor’s external Political interface Objectives Support Programme Strengthening organised intergovernmental The City participates in all to the Executive integration and alignment through co- intergovernmental processes Mayor ordination and participation Strengthening the Executive Mayor’s role as SALGA National Assembly held in East Chairperson of SALGA London Five-Year Strategic Active and manually beneficial interactions with selected sister cities Objectives

134 135 IDP Programmes 2008/09 Actual Performance Delivery Agenda International Review and implement projects with existing A number of programmes underway: Relations partnerships. Negotiate new partnerships Ongoing support on developing GDS Programme and sign strategic city-to-city agreements. for Lilongwe Mobilise resources for the implementation for Finalised participation of CoJ in South international partnerships. Annual review of African week festival in Belgrade international travel (September 2009) There is a pending acceptance of the terms of reference for capacity building by NTTAU Interventions plan (rural twinning) developed for assistance of the Naledi Local Municipality, which has been placed under administration. Discussions underway on areas of co- operations New partnerships Intervention negotiation: Meetings and ongoing interactions targeted The city will continue to finalise in targeting held with a number of embassies who negotiations in: have approached CoJ with intentions of exploring twinning arrangements The city targets Shangai and include: partnerships with: Mumbai Dutch embassy Lusaka Luanda (Veterans Support) Shanghai Lumbumbashi Harare (Migrants and infrastructure) Mumbai Conakry Lusaka

Bogota Project implementation will commence with: Matola Intervention Birmingham negotiation with: Val De Marne London Matola Windhoek Kinshasa Kinshasa Resource New York Mobilisation Addis Ababa Matola (diagnostic Bogota study)

Resources will be mobilised for the following International travel projects: reviews: none Lusaka (diagnostic study) Kinshasa

New partnerships targeted: Nairobi Antananarivo

136 137 IDP Programmes 2008/09 Actual Performance Delivery Agenda Five-Year Strategic Well established Protocol Programme Objectives Effective and Monitor and ensure protocol standards Three protocol standards adopted by streamlined protocol Mayoral Committee arrangements CoJ Protocol Guide throughout the City Centralisation of international travel

Align and Uniform Protocol advisory and support services all protocol provided on an ongoing basis to interventions in the political principals and City CoJ Departments Protocol support to Executive Mayor Support the during hosting of two Dutch Ministers Executive Mayor on for a luncheon; Africa Day 2009 all protocol-related Celebrations; FIFA Confederations Cup matters 2009 and courtesy visit by the Mayor of Maracanau (Brazil) Strengthen relations Utilise and strengthen relations with the CoJ Engagement with Diplomatic Corp with the Diplomatic Diplomatic Corps also adopted by Mayoral Committee Corps Five-Year Strategic Strong IGR ( synchronised planning between the IDP, PGDS (Gauteng), and NSDP, and Objectives minimal disputes between different spheres) Implementation of Continue implementation and monitoring of Identified all existing IGR Forums in the Intergovernmental IGR strategy City in conjunction with Department Relations of Local Government to ensure Framework Act standardisation and alignment through the City’s Implement projects and strategies to address Memorandum of Understanding and IGR Strategy inter-governmental challenges and strengthen Service Level Agreement currently IGR to ensure effective governance and being finalised between CoJ and alignment between the three spheres of DPSA concerning the Thusong Service government Centre. Budget requirements and related cash management systems also part of the discussions Five-Year Strategic Increased percentage of residents who are aware of the opportunities to participate in Objectives planning and service delivery (annual survey) Increased percentage of residents who say they have engaged in the City’s ward planning, GDS and IDP community participation processes, and service delivery processes (annual survey) Public Participation Roll out implementation of Community-Based Phase 2 Community Based Planning Improvement Planning (CBP) implemented, a total of 105 ward plans Programme were completed with all comments integrated into final ward plans and tabled at Council in May 2009. Only four ward plans outstanding and discussions are underway with affected Councillors

136 137 IDP Programmes 2008/09 Actual Performance Delivery Agenda IDP outreach programme Stakeholder summit was held in March where all Sectors presented their draft sector plan as part of soliciting inputs from stakeholders. Inputs received presented to S79 Committees and progress with addressing issues raised to be monitored on a quarterly basis Provincial engagements held to solicit input from provincial counterparts and MEC on revised IDP Annual customer and business satisfaction Annual customer and business survey satisfaction survey completed, to be tabled to Mayoral Committee I July 2009 Five-Year Strategic A seamless strategic and integrated planning, budgeting and performance management Objectives system consolidated Integrated Planning Formulation and approval of the IDP The 2009/10 IDP document was and Performance approved by Council on 21 May 2009 Management and copies distributed to various Programme. Build stakeholders an IDP programme Development of performance scorecards for Draft Section 57 employees scorecards implementation Section 57 employees to be more output completed to be finalised in due monitoring and focused course. The delay was due to ensuring oversight system alignment of Departmental and MEs scorecards as part of Group Performance Management Framework implementation Develop and institutionalise the use of an Deferred to next financial year effective tool for collecting, collating and analysing performance data to ensure effective business planning and reporting Ensure effective functioning of the All meetings of the Performance Audit Performance Management and Remuneration Committee were held Panel Quality assurance of final performance Conducted reviews Training and induction programme for all All training conducted level three and four employees and strategic support on PMS policy Implementation and roll out of new PMS Developed a Group Performance policy applicable to both fixed term contracts Management Framework and revised and permanent employees the Performance Management Policy for Section 57 employees, addressing issues raised by the Auditor General during the 2007/08 audit. PMS Policy Review for all other employees to be commissioned in 2009/10 financial year

138 139 IDP Programmes 2008/09 Actual Performance Delivery Agenda Ensure formulation and approval of Departmental/ME business plans departmental business plans developed and approved by Mayoral Committee and Council in June 2009 Business plan evaluation session held in June 2009 to identify areas of improvements in current business planning processes and also prepare for 2010/11 planning requirements Formulation and approval of the Service SDBIP for 2009/10 financial year Delivery and Budget and Implementation approved by Mayoral Committee and Plan (SDBIP) subsequently Council in May 2009 together with revised IDP SDBIP quarterly performance reporting Four SDBIP Quarterly Reports (including mid-year report) completed (including mid-year report) and submitted to National Treasury and the Department of Local Government according to requirements Development of annual report 2007/08 Annual Report completed and approved by Council in March 2009. The report has been posted onto the website for public view Five-Year Strategic 100% provision of secretarial support programme to Mayoral Committee and Sub- Objectives committees Executive Decision- Implement and approve systems for agenda 60% of agenda distributed at six Making Support and minutes and flow of reports days prior to the Mayoral Committee Programme Meeting (exceeding the target of four days). Similarly minutes distributed six days before the meeting Implement and improve tracking system to Quarterly reports with action plans link decision to performance management arising from Mayoral Committee systems and minutes of meetings compiled and tabled together with other quarterly reports from Departments and MEs Quarterly report on the implementation of Quarterly reports with action plans decisions arising from Mayoral Committee compiled and tabled together with other quarterly reports from Departments and MEs Monitor executive business tabled in Council Continuous monitoring of reports submitted to Mayoral Committee as well as executive business tabled in Council Update and monitor register pertaining to Financial declaration forms completed financial interests, also include MD’s and their by Legal and Compliance; Revenue direct reports and include CoJ staff and CRM; SCM and JRAS due to the to level 4 nature of their work Register of financial interests for MDs/ CEOs and their direct reports compiled and compared to supplier database. Further, JRAS audited a sample of forms received from SCM

138 139 IDP Programmes 2008/09 Actual Performance Delivery Agenda Five-Year Strategic Clear progress on making the Gauteng City Region idea a practical reality Objectives Participate in GCR City Region initiatives Convened a Mayoral GCR discussion arranged by GPG Progress report submitted to Mayoral Committee for consideration in May 2009 Mobilising internal capacity and support Assisted the newly established GCR- around the GCR concept Observatory in developing a concept and process plan for the roll-out of an OECD Territorial Review in Gauteng Five-Year Strategic Provide strategy and policy support to politicians and administration Objectives Strategy and Policy Participate in Inner City implementation Continue to co-ordinate Inner City Enhancement programme Charter Partnership Forum including Programme tracking of Charter progress Further support on selected Inner City Charter commitments (e.g. bad buildings strategy) Development of a strategic information Initiated a process to develop and platform to track implementation against implement a systematic programme to long-term goals build holdings of strategic information/ data collected internally and by selected external bodies Implementation of Executive Mayor and City Ongoing, as and when required Manager’s request for policy and strategy Already initiated process for the development next revision of the Growth and Development Strategy Develop Executive Mayor’s Mid-Term Report The final report was approved at Mayoral Committee in October 2008. A community version titled Jozi Pulse developed and distributed. The report has been distributed to identified stakeholders Formal launch took place in October and Community Imbizo held shortly after launch Popularise and disseminate GDS Ongoing Interact and participate in the Johannesburg Household satisfaction survey Household Survey completed, to be tabled in Mayoral Committee (July 2009) Five-Year Strategic 100% City compliance with all relevant legislation Objectives Legal Compliance Achieve compliance with identified critical Compliance monitored in accordance Programme legislation by all Departments with legislation against a compliance register and compliance achieved Quarterly group reports identifying critical Ongoing, quarterly reports on areas of non-compliance, indicating the effect compliance prepared and tabled in and implications thereof on the Compliance Mayoral Committee meetings. All Checklist, including MEs requirements in terms of the MFMA have been met

140 141 IDP Programmes 2008/09 Actual Performance Delivery Agenda Five-Year Strategic 100% protection of the City’s legal rights Continuously addressed Objectives and interests to prevent negative financial implications

Legal Support Complete all requests for opinions within Continuously addressed Programme agreed timeframes and in accordance with brief received from client

Ensure adherence to policy regarding advice City adheres to all legal procedures and legal procedures

Advice the Mayoral Committee strategically Quarterly reports are prepared and on which areas and issues give rise to tabled at Mayoral Committee on major litigation and report quarterly on litigation litigation by and against the City and MEs Advise departments pro-actively in terms of Ongoing, as and when required constitutional challenges

Identify and formulate amendments to A report indicating feedback on legislation and liaise with other spheres of engagement with National and Government Provincial Government was considered by the Mayoral Committee in June 2009 Implement Inner City Charter commitments Ongoing legal support to achieve and advise 2010 Unit pro-actively commitments of the Inner City e.g. linear markets and housing (Chestnut) The Exclusion Zone in respect of Ellis Park for purposes of the Confederations Cup was published on 8 June 2009 and by-laws implemented as intended Implement By-law Review programme by By-laws for promulgation: reviewing four by-laws Informal Trading by-laws Property Rates by-laws By-laws for public comment: Amendment to Culture and Recreation (Public Libraries) by-laws Safeguarding of Swimming Pool by-laws Roads and Miscellaneous by-laws Outdoor Advertising by-law Stormwater by-laws Air Pollution by-laws Delegations to be implemented Delegations implemented as intended Five-Year Strategic A better informed citizenry in all matters pertaining to the City’s service delivery, and its Objectives impact on them

140 141 IDP Programmes 2008/09 Actual Performance Delivery Agenda Step up opportunities for positive, proactively CoJ politicians and officials (including showcasing of service delivery successes by the MEs) received media training to politicians and officials (including MEs) who help increase positive coverage on CoJ. received media training. These include: This focused on key aspects of media Running a service delivery series with Soweto handling techniques TV (the channel currently negotiating to be A number of events proactively featured on M-Net’s DSTV bouquet) showcased to improve positive media Rotating talk shows on service delivery at coverage and include: community radio stations and community Soweto Open Tennis Tournament feedback Africa Day Celebration PikItUp Clean-up campaign FIFA Confederations Cup 2009 Greening of Orlando Stadium State of the Environment Report launch Joburg Easter Festival Inner City Housing Project Formalise partnerships with the electronic Interviews arranged and included Radio media into stories on service delivery. This 702; Jozi FM; Thetha FM; SABC Radio; will entail taking to a higher level joint Soweto TV; some of the service delivery programmes that have already had media issues communicated include: partners in projects such as: • Expanded social package A safe education campaign during the festive • Economic Development Skills season with the largest African language Programme station, Ukhozi FM. This will include The New • Clean City campaign Year’s Eve Carnival • JMPD Operation Nomakanjani Soweto Marathon with SABC, not only • 2009 Cycle for SMMEs Export focusing on the race but also having the Promotion project roving camera focusing on showcasing service delivery on the route that has been demarcated for runners Five-Year Strategic A better informed citizenry on all matters pertaining to the City’s service delivery, and its Objectives impact on them Sustain the approach of effective containment Proactive media statements issued on of negative media issues through more burning issues and include: effective media monitoring and proactive • Mayoral Committee Reshuffling drawing up of holding statements for • Metrobus strike negotiations standing burning issues and these include: • Nurses unprotected strike • Migrant Help Desk • Rate Policy review • Update on swine flu pandemic

142 143 IDP Programmes 2008/09 Actual Performance Delivery Agenda Encouraging senior officials and politicians Started interdependency relationship to contribute letter writing for publication in with officials and politicians who were different media. Also identify issues discussed media trained. MMC’s, ED’s and MD’s in various broadcast media and encourage are featured in interviews and article senior officials and politicians to participate in in the mainstream and community the debates media. This interdependency is based on a structured approach to proactively take advantage of media opportunities (through interviews, media briefings, press statements etc) to showcase the CoJ service delivery success stories Encouraging politicians and senior officials to Same as above host media briefings at least quarterly Identifying strategic good media Published a number of communication representatives stories on service delivery service delivery: from an entertaining and human interest • Safety campaigns during mall perspective of the community campaigns initiatives • Service delivery success stories in the Regions • Mid-term reports inserts into mainstream newspapers • City’s delivery achievements towards hosting FIFA Confederations Cup 2009 and 2010 Five-Year Strategic Promote Joburg as a World-class African City Objectives Further increase the promotion and building Completed Corporate Identity of the City brand by continuing to provide Audit towards the review and in-house training to internal stakeholders implementation of CoJ Corporate and suppliers regarding compliance, and Identity Manual by adopting a more systematic monitoring regarding the application of the City CoJ Corporate Identity Manual corporate identity. The objective is to increase approved by Mayoral Committee in levels of compliance from 50% to 75% June 2009, corporate identity road shows planned for 2009/10 to improve compliance Despite budgetary constraints, there has been More than 24 adverts placed in local, an increase in the frequency and creativity national, continental and international in promoting a positive image of the City to publications and include: local, African and international stakeholders • Local – five print adverts in by placing advertisements in local, national, magazines and four newspapers continental, and international publications. • National – four print adverts in local The increase will be from three to six national Caxton newspaper) publications, from two to four in continental • Continental – Afropolitan and publications, and two to four in international African Business publications • International – Sawubona and African Decisions

142 143 IDP Programmes 2008/09 Actual Performance Delivery Agenda Extending the integrated approach to the Five and six tradeshows and exhibitions utilisation of exhibitions and displays that held respectively including Easter market the City by introducing a more Festival and Africa Day Concert interactive marketing component. The number of trade shows will be doubled from two to four. The target audience will be both local and international, and the tactics will be a combination of information sharing panels and promotional items that visitors to the exhibitions and displays can take away with them Activate and successfully execute the 2008/09 Host City poster launched in Mangaung component of the 2010 FIFA World Cup. The in January 2009 key deliverables are the execution of:

• The Host City Displays at stadiums Hosted 500 days celebrations (incl. site • Design and FIFA approval of the Host City visits and Dinner with the Legends) Poster

• Production of 2010 Host City publicity Host City brochure distributed to material citizens Five-Year Strategic Stage high profile events that showcase the City as a World-class African City Objectives Source and execute more world-class events Successfully hosted the following that will not only boost confidence in the world-class events: City’s ability to host a successful 2010 FIFA • Joburg Open Golf Tournament World Cup, but which also showcases the • Soweto Open Tennis Tournament City as a World-class African City. World- class events that will be hosted in partnership with the private sector include and enhanced execution of The Joburg Open Golf Tournament, The Joburg World Parade, and the Westbank Motor Racing Series, which will be hosted in Soweto as a street event

Grow the Soweto Marathon to a level Event held whereby interest is drawn from athletes based in other SA cities, as well as from beyond our borders. The growth of the marathon will be arranged through more aggressive promotional initiatives (such as below and above the line advertising), and on platforms provide through attracting athletes by creatively piggy-backing on other major racing events, such as the Two Oceans Marathon, Comrades, and athletics clubs in the different provinces

144 145 IDP Programmes 2008/09 Actual Performance Delivery Agenda Sustain the growth in the number of Event held participants in 94.7 Walk The Talk, and try big name cyclists to the 9407 Cycle Challenge. The growth of the Cycle Challenge will be attained through more aggressive promotional initiatives to attract cyclists participating in events like the Cape Argus an through cycling clubs The 702 Walk The Talk can be enhanced Event held through partnering the radio station in not only promoting the fact that the proceeds are going to charity, but also influencing the selection of routes to not only make it a fun-filled family day, but also to showcase interesting features of the City’s landscape, as well as significant new service delivery developments and achievements Print and publish the Easy Guide to Easy Guide developed and published Organising Safe Events in the City Five-Year Strategic Number of cases of fraud, maladministration, and corruption reported and investigated Objectives over the five year term Ethical Government Focus in areas of Finance and EMS Conducted workshops as a proactive Programme measure and provided dedicated staff on the identified focus areas Strengthening corporation with outside Continuous engagements with SAPS partners, e.g. SAPS and City’s business forum for enhanced cooperation Implement anti-fraud and corruption Fraud detection review completed measures informed by trends and analysis Four ACL Data mining exercises report completed 62 Forensic projects completed Introduce capacity building mechanism to 102 workshops were conducted the City’s senior managers in relation to covering at least 3 749 of the City’s management of cases of fraud employees Five-Year Strategic A prioritised list of key risks properly specified and mitigated Objectives Enterprise-wide Integration and alignment of risk Strategic risks assessments for 2009/10 Risk Management management into citywide processes, e.g. were conducted for 14 departments Programme budget cycle, business plans and four entities which fed into the business planning processes Evaluate the risk exposures against the City’s Risk exposure evaluation not conducted objectives for 2008/09 and will be done during the first and second quarters of 2009/10 Conduct annual strategic/operational risk Strategic and operational risk assessment for City Departments and MEs assessments were conducted for MEs and report thereon and departments for the 2008/09 financial year

144 145 IDP Programmes 2008/09 Actual Performance Delivery Agenda Monitor and report on the Business Continuity 21 business impact analyses and 11 plans for the City and MEs business continuity plans drafted. Not all departments/MEs were covered due to budgetary constraints Research and establish risk control standards 64 more new common risks have been for major risk areas in the City, according to added to the existing database of 132, Risk Register, e.g. SCM against which best practice controls have been recommended bringing the database of controls to 196 Assess the City’s risk exposure to contract The City’s risk exposure to contract risk risk and develop contract risk managements also could not be undertaken due to guidelines budgetary constraints, but will be done during the first and second quarters of 2009/10 Five-Year Strategic Achieve clean audit Objectives +Internal Audit Alignment of citywide IA functions, e.g. Good progress was made with the Development transversal audits, OPCAR, performance implementation of audit coverage plan, Programme audits with at least 70% implementation of the plan Extend IA function offered to include other Internal Audit functions extended to small- medium-sized entities Johannesburg Zoo and Metro Trading Company External Quality Assurance Programme Preliminary External Quality Assurance Programme conducted, currently implementing recommendations Increased focus on strategic projects, e.g. 2010: 2010 Citywide Risk Register 2010, Phakama, Finance, and Performance reviewed to assess the state of Management readiness for the FIFA Confederations Cup 2009, new risks identified and their respective mitigation measures incorporated into 2010 City-wide Risk Register BRT: Development of risk register for BRT underway, at least 36 risks in BRT work streams identified and confirmed Inner City Property Scheme: Risk assessment conducted for the Inner City Property Scheme and 78 risks were identified Phakama: External Service providers solicited to provide the City with SAP implementation assurance service and five main risks identified and recommendation Monitoring and report on IA framework In progress implementation Strengthening of partnerships with other Ongoing spheres of government, National Treasury, GSSC, and high capacity Metros

146 147 IDP Programmes 2008/09 Actual Performance Delivery Agenda Five-Year Strategic Optimise Information and Communications Technology (ICT) delivery environment Objectives SAP Technology Implement the Unified Customer Contact Technologies to implement the Unified Programme Centre to enable the City to improve its Customer Contact Centre (UCCC) customer relations management to enable improvement in Customer Relations Management (Phakama) have been procured. The delay in rolling out the technologies and systems to enable the UCCC functionality is a result of delays in securing a suitable building Integrate the disparate systems to enable real- Pikitup SAP R/3 has been successfully time information exchange between SAP and implemented on time and within legacy systems budget Lead and manage the technical specifications Plans for rollout of the Joburg and the rollout of the Joburg Broadband Broadband Network Project (JBNP) Network Programme architecture underway, currently technical audit is being conducted and technical support provided as and when required Free Telecoms Zones Develop the technical specifications and lead The IT part of the project could not be (FTZ) Project with implementation of the FTZ Network implemented as planned because of its dependence on the rollout of the JBNP Roll out the FTZ in the Inner City and The EDU Department has identified Doornfontein, as identified with EDU a number of developmental zones in which the FTZ infrastructure will be built, however as indicated above the project could not be implemented Five-Year Strategic Develop and enhance programmes efficient and improved service delivery Objectives The main intention of this initiative is to support the changing business needs through: • Designing and implementing a Baseline Enterprise Architecture to support the changing business environment • Enabling the application, infrastructure and service change strategy • Enabling an enterprise knowledge management environment Enterprise Systems Define and implement key interoperability The Enterprise Systems Framework Framework blocks to enable information exchange has been implemented successfully, Programme and collaboration (GIS/Spatial Information including the formulation of the Spatial Strategy Project) to ensure support for the Information Policy more effective use of spatial information in the City’s operations and decision making process Provide the infrastructure, services, and Installed the wireless infrastructure for applications to support collaboration across CoJ Core and MEs to run on their own the City and its partners, other government Virtual Private Networks (VPNs) and so departments, customers and supplier’s reduce reliance on Telkom and reduce processes and technology telecommunication costs. This has led to remote sites gaining access to information and computing resources at reduced costs. 312 buildings and four MEs (97%) are running on the wireless technology infrastructure The PikiSAP project successfully implemented

146 147 IDP Programmes 2008/09 Actual Performance Delivery Agenda 2010 Governance Continue collaborating with the City’s 2010 The 2010 Systems and Information office and other stakeholders to deliver on Technology and Telecommunication the 2010 systems and Information Technology implementation plan was completed and telecommunications requirements and approved by 2010 Mayoral sub- committee, busy with recruitment process for 2010 ICT Programme manager Currently finalising negotiations / agreements for the implementation of the Internet Kiosks for 2010 Continue with the operation of the CIO Collaborative work with other Forum with the focus on ensuring that there departments/MEs undertaken on is synergy, transparency, communication, planning and execution of strategic collaboration, economies of scale, and no projects in the City such as Phakama, duplication between the City’s and MES’s ICT JBNP and Land-use Information System initiatives Establish an Enterprise-wide Project/Portfolio The Enterprise-wide Project/ Portfolio Management Office to guide IT investments Management Office established and and manage enterprise-wise IT project currently managing the following priority projects: SAP Technology Programme Unified Communication Contact Centre Five-Year Strategic Innovation and Knowledge Management Objectives Deliver the business intelligence the City requires to enable the best possible governance decisions to be made Deliver forums and technology to facilitate the creation and promotion of a learning, sharing and informed culture Promote good governance and create a learning, sharing, and informed to transform the City into a World-class African City through the innovative use of technology, information and knowledge

148 149 IDP Programmes 2008/09 Actual Performance Delivery Agenda City Knowledge Provide Knowledge Management support CoJ has reviewed the current Management to the City’s core departments and Knowledge Management Strategy Strategy implementation of appropriate knowledge and developed a KM Toolkit for easy management tools use by internal stakeholders. Some stakeholders were consulted during the review of the strategy Further, appropriate systems and processes have been put in place to assist with the identification and collection of strategic CoJ knowledge repository for central storage and reuse as part of institutional memory Promote a culture of team learning in Employee shared learning’s programme partnership with Corporate Human Resources introduced in 2008/09 aimed at through structured workshops for employees encouraging knowledge sharing across on the Knowledge Management Framework, functions thereby nurture and promote which will empower participants with the learning for improved service delivery. skills and knowledge to implement and Some of the topics covered in the sustain big knowledge management initiatives programme include: Raising awareness on climate change Implement the Information and Knowledge CoJ has developed and currently Exchange Programme through focus groups implementing a three step ideation and communities of interest in addressing key (brainstorming/ generating creative challenges faced by the City solution) process. 4 service delivery challenges were investigated and recommendations made using the ideation process Implementation of an employee innovation An integrated employee innovation strategy as part of promoting a culture of strategy and implementation plan innovation within the City through workshops developed as part of consolidating current innovation practices within the City Successful submissions forwarded to CPSI for recognition, lesson and replication

148 149 Improved access to primary health care through increased service hours

150 151 4.8 Health Introduction This Department’s role is to be the central primary and preventative health care service provider in the City. It covers functional areas such as HIV and Aids (including HIV and Aids in the workplace), Primary Health Care, Public Health and Environmental Health.

Summary of Overall Performance The following key deliverables received specific attention in 2008/09:

• Strengthened primary health care through increasing service hours in selected regions, and significantly reduced the number of mobile points clinics;

• Intensified efforts in respect of HIV and Aids through programme implementation and co-ordination with other spheres of government and non-governmental organisations (including business and community-based organisations. This includes additional sites for ARVs);

• Improved access to antenatal care services, and improving the TB cure rates;

• Strengthened the preventive health initiatives of the city through integrated health campaigns and outreach programmes;

• Consolidated the city’s focus on Environmental Health Services (Municipal Health Services) through promotional, educational and enforcement programmes; and

• The key risk encountered during this reporting period has been the shortage of nurses at the clinics due to competitive salaries that are paid by both the Gauteng Health Department and neighbouring municipalities.

The key interventions for the next reporting period will aim to utilise agencies as a stopgap measure to fill the vacant posts but the long-term plan will be contributing to the CoJ strategy to retain scarce skills such as those of the professional nurses.

Performance against Delivery Targets

Table 4.9: Health Performance against Targets

IDP Programmes 2008/09 Delivery Agenda Actual Performance Five-Year Strategic Environmental Health Plan to prevent and minimise environmental pollution Objectives Pollution Prevention 50 identified households in informal The annual target was not achieved as and Reduction settlements/informal food traders only 40 imbawulas were secured and Programme provided with smokeless imbawulas their rollout /distribution planned for the 2009/10 financial year 7 415 diesel vehicles tested a year for 7 367 vehicles tested emissions (Target revised to 7 081 in Business Plan) 95% compliance to sampling protocol / Annual target exceeded with 100% programmes for the city – water quality compliance achieved management

150 151 IDP Programmes 2008/09 Delivery Agenda Actual Performance Statutory notices served on 100% 398 (87%) statutory notices were served of identified council-owned vacant between July 2008 and May 2009 properties where illegal dumping regularly takes place Statutory notices served on 100% of 1 847 (182% of 930) statutory notices were identified non-council owned vacant served between July 2008 and May 2009 properties where illegal dumping regularly takes place 200 “No dumping” signs erected 192 signs erected city-wide on properties where illegal dumping regularly takes place (Target revised to 105 in Business Plan) Five-Year Strategic An integrated and well-resourced system in place for environmental health Objectives certification, monitoring and enforcement Environmental Health 100% implementation of a developed 100% Risk Management plan of a single point of certification Programme 100% implementation of a system to A system of monitoring compliance and monitor compliance and enforcement enforcement comprising Environmental for all municipal health functions Health databases, registers, service delivery reports, and service delivery monitoring tools exists in all the Regions One visit a year to (each of the 102) Target achieved as 161 visits were made to mortuaries / funeral undertakers all 102 mortuaries

One public awareness programme 22 public awareness programmes were conducted per region on measures to conducted to control vector infestation control vectors across the City 100% (436)of identified hotspots sites 651 (out of 436 targeted) identified hotspot serviced by vector control personnel sites were serviced by vector control personnel by May 2009

Vector control measures were instituted in all the identified hotspot areas 100% compliance of health and 100% safety guidelines for all new health departments’ capital projects in the City Five-Year Strategic At a consistent rate of monitoring and enforcement, reduced incidence of non- Objectives compliance with environmental health regulations and set standards Environmental Health One blitz a region focusing on nuisance 20 blitzes were conducted Promotion Programme buildings 100% of identified ECD facilities 100% target achieved as 4 495 inspection inspected visits conducted One training workshop in conjunction Three workshops conducted with Community Development on ECD legal requirements One campaign a region on chemical 17 campaigns were held citywide, nine safety and lead awareness on chemical safety and eight on lead awareness 1067 identified informal food traders Target achieved as 2 288 were trained trained citywide

152 153 IDP Programmes 2008/09 Delivery Agenda Actual Performance Five-Year Strategic To reduce the risks of potential outbreaks and effectively contain outbreaks when Objectives occurring Communicable Health Department’s surveillance Integrated Disease Outbreak system integrated into the CoJ Disaster Response Management System Improvement Mopping up activities undertaken Target achieved as ongoing educational Programme in identified areas of low routine activities undertaken immunisation coverage 100% functional Outbreak Response All Regions have Outbreak Response Teams teams in each region 100% of cases investigated and 80% 100% cases investigated to minimise local reported within three working days transmission Five-Year Strategic Improved awareness of HIV and Aids risks, prevention methods and available services Objectives HIV Prevention Three peer education programmes 3 Programme implemented in hostels

150 peer educators trained (including 195 traditional healers) Three peer education programmes 3 implemented in informal settlements Two youth programmes implemented 2 Two Commercial Sex Workers (CSW) One new programme programmes implemented (one new) (Target achieved) 100% of identified hotels with CSW 100% supported as part of the outreach campaign 100% of identified hotels with CSW 100% with at least one peer educator each 50 new community-based condom 59 distribution points established Two additional sites per Region (Totalling Two additional sites per region 14 sites) distributing female condoms However, there is a challenge of shortage in female condoms Five-Year Strategic Reduce rate of HIV infections Objectives HIV Prevention 100% of fixed facilities (84 clinics) 100% Programme providing rapid on-site HIV testing (continued) services 100% of fixed clinics that offer 100% (84 clinics) comprehensive ANC providing PMTCT services 100% of fixed clinics (84 clinics) 100% conducting PCR testing in children 100% 100% of fixed clinics implementing INH RHRU developed INH Register and health preventive therapy staff was trained

152 153 IDP Programmes 2008/09 Delivery Agenda Actual Performance Five-Year Strategic City-wide access to comprehensive HIV and Aids support services to ensure effective Objectives medical care for people infected and affected by HIV and Aids Medical Care and 100% of regions with access All regions have access ART roll out support to comprehensive HIV and Aids programme management treatment programme in the CoJ 100% of fixed facilities (84 clinics) 100% providing rapid on-site HIV testing services 100% of fixed clinics that offer 100% (84 clinics) comprehensive ANC providing PMTCT services 100% of fixed clinics (84 clinics) 100% conducting PCR testing in children One new anti-retroviral (ART) site Two sites established established in CoJ One community awareness campaign One in all Regions (seven in total) in all regions to raise awareness on availability of PEP services 100% provision of comprehensive STI All fixed facilities provide STI treatment management at all fixed clinics using the new protocol 100% 100% of fixed clinics implementing INH RHRU developed INH Register and health preventive therapy staff trained 32.3% 50% newly diagnosed HIV positive Although all patients are counselled, testing patients tested for TB is a challenge because it is voluntary Five-Year Strategic City-wide access to comprehensive HIV and Aids support services to ensure effective Objectives community-based care for people infected and affected by HIV and Aids HIV and Aids Extend Jozi Ihlomile Programme at two Extended to two new areas Community Care and new sites in Region G (16 existing sites) Capacity Development Implement outreach programme in One programme implemented, with five Programme Poortjie (Region G) home-based care volunteers Maintain Jozi Ihlomile programme at Maintained at 16 sites 16 sites One community HIV and Aids forum Seven in total established (per Region) (One Regional HIV and Aids Intersector Committee a Region) One new food garden per region in Two a region community-based facilities established (14 in total) (Revised to two per region in Business Plan) 100% wards with access to PLHWA 100% support groups and HBC programmes All wards accessing funded NGOs with PLHWA support One HIV and Aids community support One (Rex Street Information Centre) and information centre established Two PLWHA forums established in the Two in Regions C and D City

154 155 IDP Programmes 2008/09 Delivery Agenda Actual Performance Five-Year Strategic Monitoring the rate of CoJ staff absenteeism and departure attributable to HIV and Objectives Aids Workplace Wellness Eight new workplace wellness, HIV 12 HIV and Aids and Aids forums established (regions, Programme departments and entities) (Revised to 12 in Business Plan) 100% access to EAP for employees 100% infected and affected by HIV and Aids 100% compliance with minimum 100% standards on HIV and Aids in the workplace 100% of CoJ departments / entities 100% / regions conducting awareness programme to reduce / prevent risk and new HIV infections 100% implementation of integrated 100% Workplace Wellness, HIV and Aids programme by departments and regions 100% access to HIV and Aids 100% counselling services for CoJ employees 100% access to comprehensive HIV 100% and Aids Management Treatment (including ART) to CoJ employees 60 managers trained on HIV and Aids 138 programme 400 additional Workplace Wellness and 462 additional peer educators trained HIV and Aids peer educators trained Two citywide workplace HIV and Aids Three campaigns conducted awareness campaigns conducted Quarterly monitoring of the rates Quarterly monitoring conducted of absenteeism and departures (Four quarterly monitoring reports attributable to HIV and Aids produced) Five-Year Strategic Equitable distribution of primary health care clinics and more convenient operating Objectives hours in clinics and improvement in the perception of PHC services attributable to HIV and Aids Primary Health Care Two (five in Business Plan) additional Seven additional clinics with extended Strengthening and clinics with extended service hours service hours (commenced Saturday services Expansion Programme activated despite severe staff shortages and high staff turnover) Two service points converted to fixed One (88 of 89 clinics are now fixed clinics clinics offering service at least five days a week, except for Rosebank) 30% Implementation of the developed 25% 3-5 CAPEX Plan including 2010 (Target not achieved due to restricted priorities budget allocation) 50% implementation of completed 75% annual PHC training plan (HRD plan) 10% annual increment on PHC 10% clinically trained nurses from baseline One EMS training session per quarter One session a quarter (75 nurses trained)

154 155 IDP Programmes 2008/09 Delivery Agenda Actual Performance 100% completion of revised PHC 100% facility based organograms One annual staff satisfaction survey Survey not conducted Consolidated conducted to develop interventions to remedial plan of action for all Regions improve staff morale Another survey planned for the next year 50% implementation of developed 60% staff recruitment and retention strategy Some interventions require substantive budget increases 100% regions with functional cost 100% centres 100% service delivery points with 100% monthly laboratory control systems 100% service delivery points with 100% monthly pharmaceutical stock control systems Less than 5% drug stock-out in Less than 5% customised EDL per region Not more than 5% shrinkage on 0.04% shrinkage pharmaceuticals at the central pharmacy and the clinics Quarterly waiting times’ assessments Quarterly assessments were conducted conducted at clinics 75% of ward health sector 80% representatives trained Two information sharing workshops 1 for community structures per annum, including traditional healers Monthly monitoring of implementation 98% resolution rate of complaints management system: response time and resolution rate (targets) according to criterion (Revised to 95% Resolution rate in Business Plan) 20% increase in customer-care training 79.4% (Revised to 90% in Business Plan) 20% (75 additional) of clinicians 63 additional clinicians trained trained in early identification of people with mental illnesses Staff shortages made it difficult to meet the annual target Five-Year Strategic Improved TB cure rates across the City Objectives

156 157 IDP Programmes 2008/09 Delivery Agenda Actual Performance TB Control Programme 72% cure rate of new smear positive 76.7% cure rate achieved TB patients (Revised to 74% in Business Plan) 8% or less interruption rates 6.8% 85% of newly diagnosed (New Smear 90.1% Positive) placed on treatment 95% TB patients on Directly Observed 95% Therapy (DOT) 75% of sputum results received within 96.1% 48 hours (Turn around time) One TB awareness programme One a region conducted in each region 100% of fixed clinics implementing INH 100% preventive therapy RHRU developed INH Register and health staff was trained Five-Year Strategic As measured by a five-yearly survey, improved community awareness of health risks, Objectives healthy lifestyle and the availability of services for chronic conditions Comprehensive and Two health professionals a region 20 altogether Integrated Health trained in health promotion (14 Promotion Programme altogether) 21 substance abuse awareness and Awareness programmes held in 16 High education programmes conducted at 3 and 16 Primary schools high schools per region (Revised to 16 High and 16 Primary Schools in Business Plan) 100 males screened for prostrate gland 1 173 males screened and testicular cancer per region (Revised to 840 in Business Plan) Cervical and breast cancer awareness One conducted in each region programmes conducted (one in each region) Awareness programmes on chronic One conducted in each region conditions of lifestyles conducted (one in each region) 85% of fixed facilities providing chronic 89% (79 of 88) care One awareness programme on mental One conducted in each region health conducted a region 100% of ECD centres visited to 100% conduct integrated awareness Some visited more than once programmes (with Environmental Health) One EPI awareness programme One a region conducted per region 90% (full) immunisation coverage of 90% children under one year

156 157 IDP Programmes 2008/09 Delivery Agenda Actual Performance CHILDREN AND YOUTH PROGRAMME IS NOT ON THE REVISED IDP Five-Year Strategic Five-yearly improvement across a selected set of national indicators of women’s health Objectives service provision (Percentage of ANC patients tested for HIV; Percentage of Vitamin A coverage in post partum mothers; Percentage of coverage of cervical cancer screening; and Percentage of contraception coverage)

Women’s Health 90% fixed facilities providing 100% (84) of fixed clinics provide Programme comprehensive ANC in the city comprehensive ANC including PMTCT 90% of ANC patients offered HIV 98% counselling 25% of Vitamin A coverage in post 39% (July 2008 – May 2009) partum mothers 35% contraception coverage in women 31% (July 2008 – May 2009) 15-45 years (uninsured) 5% increase in cervical cancer 29% increase (from 23 192 to 29 846) screening coverage from the baseline One awareness programme on cervical One in each region cancer and breast self examination in each region One awareness and education One in each region programme on reproductive and maternal health in each region, including postnatal depression Awareness programmes on teenage Conducted in 25 High and 26 Primary pregnancy conducted in Two high Schools schools a region (Revised to 14 High and 14 Primary Schools in Business Plan) Five-Year Strategic Reduce environmental health risks Objectives 2010 FIFA World Cup Statutory notices served on 100% 286 (46%) statutory notices were served Programmes of identified council-owned vacant during July 2008 to May 2009 properties where illegal dumping regularly takes place Statutory notices served on 100% of 1 847 (182% of 930) statutory notices were identified non-council owned vacant served between July 2008 and May 2009 properties where illegal dumping regularly takes place 100% of butcheries inspected for 2 364 butchery inspections were conducted compliance with legislation (according (exceeding the 1 574 or 100% mark) to database) 95% of identified food premises 26 305 (2237%) out of a targeted 9 050 issued with certificate of acceptability formal, and 2 898 (95%) informal food according to R918 premises were inspected for compliance with R918 regulations Two visits a year conducted at all public conveniences One public awareness programme 22 public awareness programmes were conducted per region on measures to conducted to control vector infestation control vectors across the City 100% of identified hotspot sites 651 sites serviced serviced by vector control personnel One blitz a region focusing on nuisance 20 blitzes were conducted buildings

158 159 IDP Programmes 2008/09 Delivery Agenda Actual Performance Five-Year Strategic Improve accessibility to and quality of service at primary health care clinics, and Objectives undertake comprehensive and integrated health promotion 2010 FIFA World Cup Two additional clinics with extended Seven additional clinics with extended Programmes service hours service hours One satellite clinic and two mobile All service points converted to fixed clinic points operationalised to fixed clinics Only one satellite clinic, Rosebank 50% of identified clinics upgraded and 0% renovated Four clinics are targeted for renovation – Yeoville, Jeppe, Riverlea and Nokuphila Three peer education programmes 3 implemented in hostels 150 peer educators trained (including 195 traditional healers) Three peer education programmes 3 implemented in informal settlements Two youth programme implemented 2

100% of identified hotels with CSW 100% supported as part of the outreach campaign 100% of identified hotels with CSW 100% with at least one peer educator One EMS training session a quarter One a quarter 100% functional Outbreak Response All regions have Response Teams teams in each region 100% of outbreak response cases All cases being investigated investigated and 80% reported within three working days

158 159 Creating sustainable human settlements

160 161 4.9 Housing Introduction The sector is a facilitator of housing delivery, pending full accreditation to distribute subsidies. Until such full accreditation is granted, the CoJ is only able to act as an agency of the Gauteng Provincial Government.

Summary of Overall Performance The financial year 2008/09 has seen continued efforts to improve the rate of delivery in housing services to meet, and indeed exceed the targets. There have been improvements in a number of key performance areas, for example, delivery of CHP/PHP Programme, lodging of title deeds, turnaround time for resolution of complaints, rent collection, upgrading of council owned stock, among others.

The major challenge in this period has been the formalisation of informal settlements programme. To perform optimally in the coming financial year; the sector has developed a comprehensive plan, which will link settlements to housing opportunities to be created, with clear time lines.

The other area of challenge in this period has been measuring the reduction of the 1996/1997 housing backlog. In spite of creating new housing opportunities, the sector has found it difficult to measure the backlog specific to this group of beneficiaries, as a result of the tool to take this measure (Provincial demand database) not being commissioned as yet. i.e. operation Ziveze with the objective of verifying the actual backlog in a disaggregated format has yet to be published.

Despite the challenges, the sector will continue to honour the commitments of the Growth and Development Summit made by the City. The commitments in this regard are as follows:

Formalisation of Informal Settlements

The projection that 50 informal settlements would be formalised by the end of this financial year 2008/09, did not foresee the possibility of delay. Notwithstanding, the lengthy process of formalisation, from layout diagrams being prepared, circulated for comments to all relevant City departments and MEs to the submission for approval by the Surveyor General. The dependency on variables (other institutions) has not helped the process. Suffice it to say that by the end of the fourth quarter (June 2009), diagrams/layout plans for 11 settlements were submitted to the Surveyor General for approval.

Rejuvenation of the Inner City and Older Centres

The sector will continue to build on the gains made from the partnerships with the private sector in the preceding financial year. The department has focussed on rental units and emergency units to achieve this rejuvenation. The first quarter saw the approval for the refurbishment of two buildings in the Inner City to be implemented by the sector (Casa Mia and MBV Phase 2). The refurbishment of MBV Phase 2 into temporary accommodation comprises 395 beds. By the end of the fourth quarter, 135 beds were provided.

Although the Casa Mia project was also initially conceptualised as an emergency accommodation project, the costs and the original configuration of the building have indicated the conversion of the building into longer term rental accommodation as the more viable option from a practical and cost-effectiveness perspective.

Delivery of 100 000 Units by 2010

The Department is tasked with meeting the City’s target of 100 000 units by 2011. The portion for the 2008/09 financial year of the target of 100 000 units, should have seen the delivery of 22 000 units in thefollowing categories: Mixed Housing – 10 000 units; Hostel Redevelopment – 3 500 units; Rental Accommodation – 1 500 units and CBP/PHP – 7 000 units. However, the actual achievement for the 2008/09 financial period was 18 374 units – with 3 534 units for Mixed Income, Hostel Redevelopment 872 units, Rental Accommodation 6 286 units, and 7 682 units in the CB P/PHP category.

160 161 To reiterate, in this quarter the department has boosted the delivery total in the rental units’ category and has exceeded the target by 4 786 units and CBP/PHP by 870 units. However, Hostels and Mixed Income Housing programmes have not yielded anticipated /targeted units.

Addressing the Housing Gaps

The spatial anomaly created by apartheid paradigm resulted in disparities in the housing ladder. The City has rallied its resources towards closing this gap. The City will develop mixed income inclusionary housing that would include, RDP/BNG housing, rental housing, and bonded units. This in the past period has manifested as the Mixed Income Development Programme. The Mayoral committee of the City has ring fenced some 30 odd sites for this programme and proposal calls for some have been advertised. The programme also speaks to all facilities that go with Human Settlement development.

Proficient Management of City Stock

In the previous financial year, the City embarked on a project of auditing all the council stock to ascertain the occupancy levels and determine all the stock that have been transferred to the legitimate beneficiaries. This process has resulted in the department having full knowledge of lessee of our stock, as well as giving the opportunity to develop well-informed management plan of Council-owned stock.

The department’s commitment into the future continues to be “to facilitate the delivery of a wide range of safe, affordable and well located housing opportunities in sustainable human settlements through:

• Delivery at scale of adequate housing;

• Delivery at scale in sustainable human settlements;

• Ensuring integration (access to amenities and opportunities, race and class restructuring, housing and bulk service delivery);

• Promoting housing assets (reducing the vulnerability of the poor, facilitating housing ladder ad trampoline opportunities, and municipal sustainability through rates);

• Dealing with informal settlements; and

• Effective management of housing environments”.

Performance against Delivery Targets

Table 4.10: Housing Performance against Targets

IDP Programmes 2008/09 Delivery Agenda Actual Performance

Five-Year Strategic Objectives Implement effective building standards and by-law enforcement

Building standards promotion Programme rescinded under Housing All houses constructed in the and enforcement programme previous financial year (2008/09) met the requirements, and are approved by the National Housing Building Regulation Council Housing consolidation and All efforts and “pockets” of housing Consumer education workshops asset improvement support consumer education that appear were conducted for fifteen programme; education across the Sector Plan to be kept communities citywide. This programme to build awareness under one programme initiative was a provincially-led about options for housing programme in partnership with consolidation and asses (Housing consumer education is under CoJ improvement housing programme) (100 000 units)

162 163 IDP Programmes 2008/09 Delivery Agenda Actual Performance

Sustainable Human Settlements The two programmes have been 268 Units were delivered with Programme (Housing merged under the Sustainable 90 and 108 units delivered in component) Settlements Programme the Roodepoort and Pennyville Green Housing Programme projects Five-Year Strategic Objectives Formalise all settlements located on state land. 50% of informal settlements formalised or upgraded to a minimum level of basic services Formalisation of Informal Formalise fifty Settlements A comprehensive plan of Settlements action has been developed for formalisation Deliver about 1 500 fenced stands in 767 units have been fenced. This the City comes after the CoJ Housing’s application for deviation from 15 000 to 500 fenced stands was granted Implement housing projects in line Eleven settlements’ plans have with the Northern and Southern been submitted for approval of Development Frameworks Surveyor General In consultation with other stakeholders, roll out the Essential Construction of road in Lehae has Services Programme in settlements been completed Coordinate with JRA road surfacing programme Ongoing engagement with JRA on road surfacing Installation of bulk services in identified The installation of bulk services in areas Sol Plaatjie, Doornkop (Lufhereng) completed and Orange Farm installation of the bulk services in progress. In Stretford there has been slow progress due to leaner ship contractor Five-Year Strategic Objectives Develop a set of interventions to improve the quality of backyard accommodation Backyard Accommodation Facilitate the review of the impact of 798 backyard rental units were backyard accommodation in line with completed in Orlando and Zola the Affordable Rental Programme Accelerate the negotiations with banks The department had discussions to include backyard accommodation with the four major banks (ABSA, FNB, Standard Bank and Nedbank) and Gauteng Partnership Fund. A draft MoU developed but not yet signed with the major banks and GPF Five-Year Strategic Objectives Structure partnerships with stakeholders to promote an Inner City and older centres residential accommodation programme Inner City Commitments Implement the Housing Action Plan 6 286 rental units were completed and Charter Commitments Implement Affordable Rental Social housing programme Programme to promote affordable rental accommodation implemented Five-Year Strategic Objectives Through a hostel upgrading programme that is sensitive to issues of affordability and quality living environment, upgrade 5 000 units

162 163 IDP Programmes 2008/09 Delivery Agenda Actual Performance

Redevelopment of hostels 1 500 units to be delivered 872 units have been achieved to date Facilitate the formalisation of the City Deep – 126 hostels to ensure integration with the Dube – 318 surrounding communities Meadowlands – 226 Diepkloof – 136 Orlando West – 66 Five-Year Strategic Objectives Create new housing opportunities for people with special needs (aged, CHHs, HIV and Aids affected/infected households, street children, among others) Special housing needs Engage with the National and Special Housing Needs Policy Provincial special needs housing policy workshop organised by the province and CoJ making inputs to the policy Ensure a percentage of new 43 new developments cater for developments cater for the demand of special needs special needs housing Region G awaiting for approval of subsidies by Province Five-Year Strategic Objectives In partnership with Province and other stakeholders, develop and manage temporary / emergency housing stock Emergency accommodation Develop temporary accommodation to 1 026 beds were bought and accommodate 1 000 beds allocated to the following buildings for emergency cases: Madula-Mmoho (resdoc) – 124 beds MBV – 776 BG Alexander nursing college - 126 Five-Year Strategic Objectives Through both the City’s own means and in partnership with other actors and stakeholders, deliver 100 000 well-located and good quality housing units over the next 5 years, which include the delivery of 15 000 rental Programme, and 50 000 mixed income housing units Housing Programme Develop 7 000 units through CBP/PHP 8 614 opportunities created Develop 3 500 rental units 6 286 units were built through rental programme Deliver 10 000 mixed-income housing 6 236 units were built through mixed income housing Conduct feasibility studies on identified Housing has coordinated with land along the BRT routes Development Planning about housing opportunities along the BRT. Applications will be made to Provincial Housing to tap into the opportunities identified Facilitate beneficiary education sessions Consumer education workshops with communities in consultation with were conducted for fifteen Province communities citywide. This initiative was a provincially-led programme in partnership with CoJ

164 165 IDP Programmes 2008/09 Delivery Agenda Actual Performance

Five-Year Strategic Objectives Address the housing ladder gap by facilitating private sector delivery of affordable rental and home ownership Implement three projects in association Two development agreements with banks have been signed. three draft development agreements not yet signed Five-Year Strategic Objectives Complete the transfer of title deeds and ensure that new title-holders are informed of the advantages of their new assets Implement feasible projects identified All the planning (preparatory) through research on the secondary studies on stimulation of the property market secondary property market have been completed Intensify consumer education in Consumer education workshops association with the provincial were conducted for fifteen department communities citywide. This initiative was a provincially-led programme in partnership with CoJ Five-Year Strategic Objectives Promote good management and maintenance of City housing stock and associated infrastructure City Housing Stock Refurbish 300 units of flats 722 refurbished through Joshco Refurbish 300 units in old age homes Maintenance plan in place Conclude refurbishment strategy for Developed draft strategy on Council stock and finalise funding management of the Older Persons arrangement with National Provincial Accommodation Facilities Government Refurbish 476 units through Joshco 722 units were refurbished by JOSHCO The recommendations of the Strategy The transfer of Public Housing on Public Stock Transfer to Joshco will Stock to Joshco strategy is being be implemented implemented. This includes City Deep Hostel and Bela Vista Five-Year Strategic Objectives Introduce the Sustainable Human Settlements approach to all new housing developments Sustainable Human Settlements Ensure that houses built are energy All houses constructed in the Programme efficient, where possible in accordance previous financial year (2008/09) with the plan approval guidelines met the requirements of being energy efficient Implements the construction of 1 000 More than 1 000 housing alternative technology housing opportunities using alternative building technology was achieved in the 2008/09 financial year. This programme was mainly achieved in Region A in Kaalfontein 22 and 23 as well as Region D in Zola Township

164 165 93% expenditure on infrastructure refurbishment

166 167 4.10 Infrastructure and Services Introduction The Infrastructure and Services sector (ISD) is the driver of policy, strategy and planning around service delivery and its associated infrastructure. It also monitors and regulates the performance of the City’s MEs, such as City Power, Pikitup and Joburg Water.

The ISD also has a core function of co-ordination and integration with all partners and role-players within and beyond the City of Johannesburg. Examples of these co-ordination roles include the 2010 FIFA World Cup where there is an urgent need for infrastructure sector integration (in terms of infrastructure upgrading according to the 2010 bid requirements) and Gautrain – the injection of R20bn over the next five years which will have a major impact on Transport, spatial patterns and economic growth on the City and surrounding areas.

Summary of Overall Performance The sector’s key responsibility is to ensure that the City’s services infrastructure for water, electricity and waste management is maintained and its capacity continually improved to provide sustainable services to all its citizens and stakeholders. To carry out this mandate the sector comprises the ISD Department and three MEs (Pikitup, City Power and Joburg Water). Although most of the sector programmes have been in place since the beginning of the five-year term, they have continuously been adjusted to respond positively to the dynamic service environment and to the needs of the communities.

The following is a discussion on progress made against these key programmes:

Basic Services Programme (BSP)

This programme seeks to reduce the service delivery backlogs through the implementation of four sub-programmes, namely Electrification, Waste Management, and Water and Sanitation services. The bulk of the backlogs are mainly in the informal areas of the City, which have about 180 settlements and 196 391 households. These backlogs are the result of various challenges ranging from high congestion levels of units to land ownership and status of the settlements.

Key to addressing the backlogs is the need to formalise these informal settlements and this was identified as a priority for the 2008/09 financial year. A programme to this effect called Informal Settlement Formalisation was developed, co-ordinated by the Housing and Planning departments. It is through this programme that a list of areas prioritised by the City would be identified and, based on a plan for a particular area, City departments would be able initiate the delivery of appropriate services, through various programmes including BSP.

The dependency of BSP on the formalisation programme has been a huge risk, as its co-ordination and implementation was mostly not aligned to BSP targets. Lack of progress on this programme during the 2008/09 financial year has adversely affected BSP delivery. As a result a different approach to service delivery for certain sub-programmes was adopted. One such approach involved consultation with Ward Councillors to determine requirements of communities. However, for certain sub-programmes, for example, Electrification and provision of LoS315 water and sanitation, the above approach was not plausible and that led to the non-achievement of targets.

Electrification sub-programme

At the beginning of the 2008/09 financial year, the programme sought to measure the provision of bulk electricity and reticulation infrastructure to areas prioritised through the Formalisation of Informal Settlements Programme. However because of the slow progress on this programme, the department focused on household electricity connections in areas where the Housing Department was allocating units to beneficiaries. Here 5 029 houses were electrified in areas like Tshepisong West, Mountain View, Lehae, Alexander, M2 and Nancefield Lifateng Hostels.

15. Provision of water connections per household

166 167 Water and Sanitation sub-programme

Three service categories are provided under this programme – nominal16, LoS117 and LoS3.The sub-programme measured the percentage coverage against areas prioritised by the formalisation plan.

Despite the challenge of the delay in formalisation, Joburg Water was able to provide nominal and LoS1 in certain areas, based on the community needs registered by Ward Councillors. Of the 34 wards which responded, 4 782 households were provided with water standpipes and 7 283 with VIP toilets, addressing all the requests received from Councillors.

There were also a number of requests for additional chemical toilets and water tanks from the Wards. However due to budgetary constrains, Joburg Water channelled its resources towards provision of LoS1 services, mostly VIP toilets. An additional 166 chemical toilets were also installed.

The overall water and sanitation coverage (through a minimum of LoS1) for the City is currently 96.78% and 90.03% respectively. The balance of the households still receives the services albeit through the nominal infrastructure programme.

Waste services sub-programme

Cleanliness levels have progressively increased in targeted informal settlements. A community based daily cleaning service which was introduced towards the end of the past financial year continues to yield positive results. Of the 61 settlements in the programme last year, an additional 24 are serviced, bringing the total to 85.

Improved levels of cleanliness within the Inner City have been sustained for the past four quarters. In May 2009, Pikitup launched a successful Clean City campaign which was followed by a citywide clean-up day on the 6 June 2009. The campaign was to raise awareness on the negative impact of littering on the environment and society at large.

Demand Side Management (DSM)

The aim of the programme is to manage the wasteful consumption of electricity and water resources and also substantially reduce the volume of waste disposed of at landfills. To this effect efforts for the implementation of the DSM programme have been intensified.

• Several pilot DSM initiatives aimed at reducing consumption levels are generally progressing well. To date, a reduction of 5% in electricity purchases by City Power from Eskom has been recorded due to various reasons, including customer responding education and awareness programmes on the conservation of power. Below is a list of consolidated DSM initiatives:

Performance against Delivery Targets

Table 4.11 Infrastructure and Services Performance against Targets

IDP Programmes 2008/09 Delivery Agenda Actual Performance Five-Year Strategic Extend access to basic services to all households Objectives Implementation 17 000 houses targeted About 59 000 households have access of Electrification to electricity Business Plan revised target is 5 000 Programme to households. 95% of formalised 5 029 of 5 000 targeted households The 17 000 electrification target was based households18 by 2011 were electrified on the informal settlement formalisation process initiated through the Spatial Form and Urban Management and Housing sectors. Delays in the formalisation process necessitated shift of focus to areas where housing units were allocated to beneficiaries

16. Provide water through water tankers 17. Provide water through water points within a 200 meter radius of a household 18. The electricity coverage here excludes the services rendered by Eskom. The total coverage is estimated at 85 %(?) including Eskom services

168 169 IDP Programmes 2008/09 Delivery Agenda Actual Performance Implementation of Implement Waste Management Plan to An average cleanliness level of 90% Waste Management ensure 24/7 clean city has been maintained Plan to optimise waste collection in all (Business Plan indicator is Attainment of Level 4 cleanliness achieved, which areas Inner City cleanliness 24/7, with a target of means that the City is predominantly 3-3.5 cleanliness level) free of litter except for small accumulations in one out of four street corners Improve waste service Extend a daily service through community- 85 of a targeted 84 settlements have delivery standards in based waste management model in access to daily cleaning service prioritised informal informal settlements with more than 5 000 areas households and Council hostels formerly managed by housing

Business Plan: Extend daily waste service to targeted informal areas Installation of water Extend water services to benefit 69 000 Water service provision highly standpipes and the households dependent on the process of construction of VIPs formalising informal settlements to cover at least Business Plan: through the Spatial Form Urban 100% of households Registered community needs of 2 825 or Management and Housing sectors. by 2010 85% of the targeted areas Delays in the formalisation process are a challenge for water service provision

Despite this challenge, 4 782 households were provided with water standpipes based on registered community needs of 2 825 (without awaiting the formalisation process). This represents a 169% achievement

Total water coverage for the City is 96.78%, which excludes areas currently being serviced through water tanks Extend sanitation services to benefit 73 000 Overall sanitation coverage is 90.03%, households which excludes areas currently being serviced with chemical toilets Business Plan: Nominal service 100% achieved (Nominal service target of 90% of the through installation of 166 chemical targeted informal areas) toilets

(LoS1 service target of 85% of the targeted The target was revised to 6 010 informal areas or 6 010 households) households due to dependency on the formalisation process. To this effect, the LoS1 service achievement was 121% through provision of VIP toilets to 7 283 households Develop and implement a strategy that will Strategy developed inform the roll out of water and sanitation infrastructure to meet GDS and government goals and targets

168 169 IDP Programmes 2008/09 Delivery Agenda Actual Performance Allocation of Free Continue with free basic water of 10kl plus All registered indigent households Basic Water and 4kl to indigent households receiving free basic water Electricity to poor households and those with special needs Reduce the free basic electricity threshold Free basic electricity provided to from 1 500 kwh consumption per household 115 958 households in line with social package proposed categories All registered indigent households receive free basic electricity Business Plan: Provide all households that consume up to 500kwh with free basic electricity according to social package Provide free waste collection service for All households below the threshold households with property below the of R115 000 receive free basic waste threshold of R115 000 collection Provide street lighting To provide street lighting to 65% of formal 1 419 public lights were provided in to 60% of informal areas and 15% to informal areas formal areas areas and 60% of high crime areas A total of 3 366 public lights were provided in informal settlements, with 80% of them in high crime areas

Achieved 80% of the 20 targeted informal areas Budgetary constraints and theft and vandalism of infrastructure remain major challenges Five-Year Strategic Upgrade infrastructure and reduce maintenance backlog to meet capacity Objectives requirements Design and Implement an asset management plan for 50% implement long-term electricity infrastructure Plan approved and aspects of it being asset management (50% implementation according to Business implemented strategy and plan for Plan) waste, water and energy Implement an asset management plan for 50% water infrastructure Aspects of the plan critical to service (50% implementation according to Business delivery being implemented. An Asset Plan) Register to prioritise maintenance and CAPEX programmes exists Implement an asset management plan for 50% waste infrastructure (50% target) Implementation in progress for five key areas, including depots, street furniture, fleet contract and yellow plant contract

170 171 IDP Programmes 2008/09 Delivery Agenda Actual Performance Implement infrastructure refurbishment All funded water, waste and energy programmes: infrastructure upgrade programmes were executed Business Plan: 95% water infrastructure rehabilitation 100%

95% infrastructure upgrade and capacitation 86%

95% reduction of water bursts 94% Target not achieved as a result of delays due to non-responsiveness of tenders for implementation of a project in Kibler Park

Leak detection programme implemented, with a total of 4 396km length of reticulation main surveyed, and in the process, burst pipes and leaking valves, meters, and hydrants repaired Implement infrastructure refurbishment All funded water, waste and energy programmes: infrastructure upgrade programmes were executed Business Plan: Waste infrastructure maintenance and Minor maintenance included repairs to refurbishment the hydraulic cylinder and installation of stack stabilising tension cables

Several garden sites identified for maintenance and refurbishment, with only minor repairs done. Major repairs were negatively impacted by the slow roll out of the facilities management execution programme Implement infrastructure refurbishment Repairs and maintenance to the value programmes: of R204.6m were undertaken, against a budget of R220m, representing 93% Business Plan: expenditure Energy infrastructure maintenance and refurbishment Installation and maintenance of public lights in prioritised areas continued, (90% of Public lighting infrastructure albeit with 80% of public lighting functional and meets minimum standards) infrastructure functional and met minimum standards, against a target of 90%

Reduction of bulk and medium voltage outages experienced due to implementation of the infrastructure refurbishment programmes, including planned maintenance, continual upgrading and reinforcement of the network and replacement of old distributors, meters 170 171 IDP Programmes 2008/09 Delivery Agenda Actual Performance Refurbishment of gas turbines completed

Experienced challenges of theft and vandalism to infrastructure as well as staffing shortages and budgetary constraints Reduce electricity Reduce network related bulk outages from Significant reduction in outages was outages by 50% in 104 to 90: recorded. 2010 (bulk, medium and low voltage) Business Plan Targets: Bulk voltages outages: 71 Bulk voltage outages: 77 Medium voltage outages: 844 Medium voltage outages: 950 Achievements on the bulk and medium voltage outages are largely due to planned maintenance, continual upgrading and reinforcement of the network and replacement of old distributors, meters, among others

Five-Year Strategic Implement DSM programmes Objectives Develop and Continue with the implementation of all Intensified efforts towards implement identified and funded DSM programmes: implementation of DSM programmes. comprehensive Several initiatives progressing well. Demand Side Business Plan: Management Percentage implementation of DSM projects Through implementation of various programmes for to reduce water consumption: DSM projects, including Tappie Road waste, water and Target to reduce consumption by 7 000 Show (targeting school learners), energy services mega litres general public awareness campaigns and removal of waste devices, consumption was reduced to 15 422 mega litres Continue with the implementation of all 100% implementation of 4 projects, identified and funded DSM programmes: namely Rubble Crushing and Brick Making Plant, Model Garden Sites, Business Plan: Landfill Airspace Optimisation Percentage implementation of (three) waste Initiatives and Landfill Strategy. The DSM projects initiatives involve waste recycling and recovery, and separation of waste at source

Waste reduction to the City’s landfills was achieved at 249 132 tons, translating to 17.7% against a target of 5%

172 173 IDP Programmes 2008/09 Delivery Agenda Actual Performance Undertake a coherent Continue with the implementation of all 5% and comprehensive identified and funded DSM programmes Although the City is implementing research programme several DSM projects, the set target to provide accurate Business Plan: was not met due to inadequate information on users Percentage (10%) reduction in electricity funding for certain projects consumption needs consumption and behaviours, especially among the poor Implement at least Business Plan: Turbines refurbished five innovative new Turbines reinstated subject to funding technologies in service delivery Solar heating, lighting and other Process underway for implementation technologies of SWH and ripple control

Roll out AMR 609 and 1 800 AMR rolled out for large and domestic power users DSM/EE Integrated energy planning underway Network protection technology Continuous research and implementation of NPT Five-Year Strategic Reduce unaccounted for and non-revenue electricity and water losses Objectives

Implement Develop a policy on conventional and pre- A metering policy for water and infrastructure paid electricity (and water) meters electricity has been developed refurbishment programme and A water metering strategy will be install pre-paid implemented to minimise losses. meters to reduce Business Plan: The strategy will, however, follow a water losses to 25% Reduce physical water losses to 9% Constitutional Court ruling set for and energy losses September 2009 from 3% to 1% by 2011 Total physical water loss amounted to 9.6%, with un-metered areas recording 15% loss. Although the target was exceeded by 0.6%, the achievement is within the acceptable international standards of between Reduce commercial/non-revenue water 10% and 15% losses to 16% Incurred 12.9% commercial losses in metered areas and 67.8% in un- Unaccounted for water losses (28% target) metered areas

36.15% Reduction of unaccounted for water losses continues to be a major challenge

The suspension Operation Gcin’amanzi (OGA) has also generally impacted negatively on water losses

172 173 IDP Programmes 2008/09 Delivery Agenda Actual Performance Business Plan: 14.33% Reduce unaccounted for electricity losses to Target not achieved due to escalated 12% illegal connections Reduce illegal Continue with implementation of OGA and The suspension of OGA has generally electricity illegal electricity reduction (strategy) impacted negatively on water losses connections Business Plan: Implemented comprehensive strategy Reduce illegal electricity connections on illegal electricity reduction, including: • Energy saving stakeholder forums; • Working with JMPD to remove illegal connections; • Roll out of protective structures to reduce tampering; • Alignment with City’s debt write-off and indigents support programmes; and • Installation of pre-payment meters Implement OGAi in all The suspension of OGA has generally deemed consumption impacted negatively on water losses areas Five-Year Strategic Establish RED 4 Objectives Participate in activities Conduct a due diligence (sale of assets) on Postponed to the next financial year that lead up to the City Power business and implement the due to delays in legislative imperatives establishment of Municipal Systems Act Section 78 process RED 4 (80% target)

Five-Year Strategic Minimise waste to landfill in line with the Polokwane Declaration Objectives Reduce, re-use and Commissioning and monitoring the Implementation commissioned and recycle at least 15% implementation of the Landfill Gas to Energy already commenced, with EIA process waste by 2010 (LFG) project with the preferred bidder underway. Construction completion expected by June 2010

50% green waste Implement alternative technologies for waste A feasibility study is in the finalisation diverted to compost reduction and treatment stages, after-which the process to facilities by 2010 procure innovative waste treatment technology will be enacted Develop legislation that will enable Project prioritised for 2009/10 due to minimisation of waste generation financial constraints Develop and Develop landfill management strategy 95% developed, as a draft strategy is implement strategy in circulation for comments to increase landfill capacity

174 175 IDP Programmes 2008/09 Delivery Agenda Actual Performance Five-Year Strategic Improve waste management services Objectives Implement turn- Continued implementation of the Implementation of the turn around around strategy turnaround of the waste strategy continued, with focus on the for business management service activity based costing system; the new improvement through tariff and funding model, business cost management, process mapping and SAP revenue generation and improved service A performance management system delivery to monitor waste service delivery performance has been implemented, with monthly and quarterly reports generated Reduce illegal Business Plan: 89 illegal spots were eradicated. dumping Elimination of (130) illegal dumping sites Target not achieved due to funding constraints Five-Year Strategic Policy development and by-law review Objectives Formulate and Formulate and implement policy on A metering policy for water and implement policy on conventional and pre-paid meters for water electricity has been developed conventional and pre- and electricity paid meters for water A water metering strategy will be and electricity implemented to minimise losses. The strategy will, however, follow a Constitutional Court ruling set for September 2009 Formulate DSM Development of DSM policy and by-law on Implemented DSM initiatives. Further policies and by-laws electricity development of DSM strategies is on waste, water and underway and coordinated by the energy Environmental Management sector Five-Year Strategic Service delivery monitoring and evaluation Objectives Introduce and Develop and implement a service delivery Frequent service delivery inspections maintain quality monitoring system are conducted as a means to improve service monitoring and address the customer perceptions system for at survey outcomes least three years that can inform Service delivery is also monitored regular stakeholder through the City’s performance engagement management system

174 175 Various JMPD operations helped reduce road fatalities by 34%

176 177 4.11 Public Safety Introduction The responsibility of providing safety and security, as well as mitigating disasters, is through delegation of authority and becomes a collective responsibility between the different spheres of government. In the City, this responsibility is spearheaded by the Emergency Management Services (EMS) and the Johannesburg Metro Police Department (JMPD).

The EMS Department’s chief responsibilities are the provision of ambulance, rescue, fire and disaster management services as well as by-law enforcement. The Department has identified two long-term goals, namely, safe and secure urban environment, a proactive and effective emergency response and disaster management capacity.

The JMPD, as the custodian for city safety and security, has initiated a number of programmes and projects to ensure that it is in a position to contribute towards a more sustainable effort to support crime prevention, by-law enforcement as well as road traffic management. It is also tasked with reducing road fatalities.

Summary of Overall Performance The EMS team played an integral part in hosting of a successful 2009 Confederations Cup by ensuring that all departments had proper contingency plans in place. The EMS team co-ordinated, facilitated and monitored the Venue Operations Committee (VOC) and the Joint Operations Centre (JOC) and there was also constant communication with the provincial and national JOC. The simulation exercises and rehearsals that took place prior to the tournament paid off. The team conducted thorough risk assessment three hours prior to each game. Systems installed at the JRA Joint Command Centre were also tested for future use. Working with Netcare 911 to pick up patients also created a positive working relationship with the private sector.

Karabo Gwalo Winter Safety Awareness Campaign: The campaign educates community members on dangers of veld fires, rubbish fires, use of paraffin stoves, imbawulas, etc. They also introduced the Juvenille Fire Setter campaign where they educated the youth on the dangers of playing with fire.

Progress on establishment of Disaster Management Centre: Funding was diverted to the establishment of a JCC at JRA. To be used for the Confederations Cup 2009 and any major event.

Total number of volunteers increased to 2 421, which exceeds the target of 2 000.

The JMPD embarked on a number of initiatives and interventions to fulfil its mandate and core function in the City of Johannesburg. Some of these include:

• Roadside checkpoints conducted;

• Several roadblocks conducted;

• Arrests for reckless and negligent drivers (Nomakanjani Operation);

• Patrols;

* Daily Patrols (Vehicle and foot);

* Targeted patrol sites include, taxi ranks, places of entertainment, liquor outlets and taverns;

176 177 • Compliance Inspections;

* Compliance inspections of targeted businesses suspected of criminal activities and by-law infringements;

• Awareness Campaigns conducted at businesses, shopping malls and schools to address safety issues such as alcohol and drug abuse, road safety, and by-laws;

• Undercover/Specialised Operations:

* Dedicated team assigned to assist the SAPS in undercover operations

* K9 Unit specialising in Explosives and Drugs

* By-Law Teams targeting enforcement of specific by-laws

* Tracing Unit -Dedicated team assigned to apprehend offenders for warrants of arrest

* Park Safety Unit; and

• Surveillance Technology

* Monitor the Inner City through surveillance technology to detect any criminal, traffic and by-law offences

Key Challenges

Crime continues to be a challenge for the sector. The sector will continue to test various policing approaches and deployment strategies to reduce crime. Crime trends and statistics are closely monitored and analysed to determine whether the changes brought about have the desired effect.

Increased enforcement is necessary to increase the number of cases on the court roll for the Municipal Court to function optimally. Although monthly statistics are being sent to all enforcing departments to highlight enforcement shortcomings, the number of citations issued remains low. The matter will be addressed through the Executive Management Team.

The implementation of the Adjudication, Administration of Road Traffic Ordinances Act (AARTO) remains a challenge. Given its implementation, it is expected that we will experience teething problems. The sector is working closely with the Road Traffic Management Corporation (RTMC) to resolve these bottlenecks and agreement has been reached that a representative from the RTMC is seconded to the JMPD.

Performance against Delivery Targets

Table 4.12: Public Safety Performance against Targets

IDP Programme 2008/09 Delivery Agenda Actual Performance Five-Year Strategic Improved Citywide compliance with regulations designed to enforce a safer Objective urban environment Safe Urban Environment Rollout the Joburg City Safety Strategy Developed safe design guidelines and Programme Methodology to cover all regions City Safety toolkit and conducted (City infrastructure: workshops with critical stakeholders design, infrastructure maintenance, and Ongoing Audit of City Infrastructure Developed safe design guidelines and operations management against the Safe Design Guidelines City Safety toolkit and conducted components) (measure compliance) workshops with critical stakeholders

178 179 IDP Programme 2008/09 Delivery Agenda Actual Performance Safe Urban Environment Targeted law enforcement operations on: 16 068 by-law cases were prosecuted Programme Street trading (External management of Signage the built environment) Illegal land invasions Waste management Illegal land use Flammable and dangerous goods)

Business Plan: Number (18 000) of by-law cases prosecuted Business Plan: 7 525 Number (5 500) of by-law citations issued for priority by-laws on illegal street trading Business Plan: 1 135 Number (2 500) of by-law citations issued for priority by-laws on illegal dumping and littering (waste management) Business Plan: 692 Number (1 600) of by-law citations issued for priority by-laws on illegal posters and signage Business Plan: 2 768 Number (2 5 0 0 ) of by law citations issued for priority by-laws on illegal water and electricity connections Ongoing Review and Improvement of Ongoing engagement with DPP to law enforcement processes and systems review and improve processes in order to improve the efficacy of the Municipal Court Conduct ongoing public awareness Various workshops, presentations and campaigns of the City by-laws door-to-door campaigns conducted with role players and stakeholders Partnerships formed with City Power/ Working teams formed with City Johannesburg Water, Johannesburg City Power, Joburg Water, City Parks, Parks, Waste Hub, and Pikitup and Pikitup, resulting in increased enforcement activities Safe Urban Environment Further intensify awareness programmes The JMPD continued to participate in Programme: on: Community Policing Forums (Community Outreach) Road safety Social crime prevention and City By- Several schools were visited and laws to all multi-cultural groups, NGO’s campaigns on traffic and crime Business stakeholders, Taxi industries, conducted Schools, Churches (in preparation for Confederation Cup)

Continue to strengthen participation in Community Policing Forums

Participate with the Business Sector through the Economic Desk

178 179 IDP Programme 2008/09 Delivery Agenda Actual Performance Five-Year Strategic Reduce incidents of crime by 7% - 10% over a 5-year period Objective Crime Prevention Crime prevention interventions to address 1.28% increase Programme the underlying causes of crime:

Business Plan: Percentage (10%) reduction in incidences of crime Business Plan : 9 303 arrests effected through Number (2 000) of arrests effected for strategic roadblocks, roadside criminal activities checkpoints and other pro-active crime prevention interventions Alcohol: frequent roadblocks, compliance Daily (vehicle and foot) patrols visits at liquor outlets, and visible patrols conducted at targeted sites including near places of entertainment (nightclubs, liquor outlets and entertainment taverns, pubs and targeted parks) places

Business Plan: Number (5 500) of arrests effected for driving under the influence of alcohol 5 641 Firearms: stop and search, joint operations 1 553 with the SAPS in support of the FCA, undercover operations

Business Plan: Number (400) of arrests effected for illegal possession of firearms. Drugs: awareness campaigns at schools Awareness campaigns conducted at businesses, shopping malls and schools to address safety issues such as alcohol and drug abuse, road safety and by-laws Organised crime: compliance visits at Conducted compliance inspections second-hand goods dealers, scrap metal of targeted businesses suspected dealers, and panel beaters, building of criminal activities and by-law searches infringements

Visible policing: increase visible patrols at Daily (vehicle and foot) patrols transport nodes, parks, pension pay- conducted at targeted sites points, shopping malls, and other areas with high incidents of crime Business Plan: 790 Number (200-250) of criminal arrests effected in parks and cemeteries

180 181 IDP Programme 2008/09 Delivery Agenda Actual Performance Social Crime Prevention: Implementation Developed and implemented social of Youth at Risk Programme with crime prevention strategy Community Development Social Crime Prevention: Developed and implemented social Joint safety awareness campaigns, crime prevention strategy targeting businesses and communities Social Crime Prevention: Developed and implemented social Development of a City Social Crime crime prevention strategy Prevention Framework (aligned with the Department of Community Safety’s Framework) Partnerships: Strengthen JMPD participation in Community Policing Forums and other Community Based structures Partnerships: Dedicated vehicles and personnel Joint operations with the SAPS in working with the SAPS identifying and addressing the priority crimes within the City Surveillance Technology: Rollout of new CCTV contract Surveillance Technology: Rapid Response Teams in place Rapid Response Teams through CCTV control rooms and SAPS 10111 command centre Business Plan: 9.3 minutes Average time (12 minutes) taken to respond to incidences of crime in areas covered by CCTV Five-Year Strategic Reduce the incident of crimes against women and children by 7% - 10% over a Objective five year period Women and Child Safety Ongoing safety awareness campaigns Safety awareness campaigns Programme targeted at vulnerable groups (women, conducted at schools, pension children and the elderly) pay points, transport nodes and in identified communities: Distribution of safety tips information leaflets Talks with scholars around child abuse and substance abuse Information around protection order process Percentage (20%) development and 50% implementation of a City’s Child Injury Draft Framework completed and Prevention Framework implementation already continuing Increase visibility of Metro Police Officers Daily (vehicle and foot) patrols at transport terminals, parks and other conducted at targeted sites vulnerable public areas

180 181 IDP Programme 2008/09 Delivery Agenda Actual Performance Five-Year Strategic A proactive well-capacitated disaster management and emergency response Objective maintained at 100% state of readiness Disaster Management Accelerate testing state of readiness for Comprehensive City’s risk assessment Programme the ten risks, according to the risk profile completed and high profile threats identified

Multidisciplinary simulation exercises for the Top 10 risks continuously conducted throughout the City Roll out of the volunteer programme to A total of 1 600 volunteers, cover 100% of the City approximately a third (600) of whom had already been trained, were registered on the established Volunteer Database

The total number of volunteers (in compliance with the FIFA requirements according to Business Plan) increased to 2 421 against a target of 2 000 100% Implementation of the mutual aid 100% response team All wards have fully established Community Emergency Response Business Plan: Teams Percentage municipal coverage of Community Emergency Response Teams 85% completion of the Disaster Phase 3 was 100% complete but Management Centre funding diverted to the establishment of a Joint Command Centre to be used for the Confederations Cup and any other major events 100% implementation of the Early 100% implementation. Warning System Weather service provides warnings Communications focus group established River levels monitored for flash floods Established partnerships with the SABC and Prime Media to enhance the Early Warning System Finalisation of partnership with cell phone companies to utilise SMS for citizens that sign up is underway Communicators / Notification Systems could not be purchased as they were not approved by legal Finalising emergency information system Procedures manual developed and information streams identified Five-Year Strategic Reduce road fatalities by 30% over a five year period Objective Reduce pedestrian fatalities by 30% over a five year period Greater compliance to road traffic regulations and road safety practices Enhanced economic efficiencies through traffic mobility

(Improve road safety and enhance traffic mobility)

182 183 IDP Programme 2008/09 Delivery Agenda Actual Performance Traffic Safety Business Plan: 34% Enforcement and Traffic Percentage (17%) reduction in annual The reduction is attributed to Flow Management road fatalities increased roadblocks and the Programme establishment of the Nomakanjani Operation, which resulted in 2 500 arrests for reckless and negligent driving: (38 roadblocks and 1 128 roadside checkpoints were conducted) Enhanced the use of CCTV for effective Rapid Response Team through CCTV traffic management in the Inner City control rooms exists to respond to serious road accidents in the Inner City and monitor traffic congestion Conduct Road Safety Awareness Safety awareness campaigns Campaigns in conjunction with the City’s conducted at businesses, shopping Transport Department and Gauteng malls and schools to address safety Department of Community Safety issues including road safety and by- laws Increased targeted roadblocks in order to Planned roadblocks and daily roadside reduce the number of accidents in which checkpoints were conducted, resulting driver impairment is a factor in 5 641 arrests for driving under the influence of alcohol Business Plan : Number (5 500) of arrests effected for driving under the influence of alcohol.

Increase Traffic Enforcement Operations as Planned roadblocks and daily roadside they relate to: checkpoints were conducted, Unroadworthy vehicles. resulting in 15 044 fines issued and discontinuation of 7 277 vehicles not Business Plan: roadworthy Number (16 000) of fines issued for vehicle unroadworthiness.

Business Plan: Number (9 000) of unroadworthy vehicles discontinued Increase Traffic Enforcement Operations About 4.1 million cases for speed enforcement

Business Plan: Number (4 million) of successful speed violation cases prosecuted

Road safety campaigns to encourage Safety awareness campaigns positive road user behaviour in conducted at businesses, shopping conjunction with Provincial and National malls and schools to address safety Departments issues including road safety and by- laws

182 183 IDP Programme 2008/09 Delivery Agenda Actual Performance Ongoing review and improvement of 11.5 minutes vehicle and driver licensing processes

Business Plan: Average turn-around time for Vehicle License renewals (with renewal notice) Target of 17 minutes Business Plan: 23 minutes Average turn-around time for Vehicle License renewals (without renewal notice) Target of 22 minutes Five-Year Strategic Communities aware of dangers and empowered to assist in mitigating disasters Objective Community Disaster Roll out of Karabo Gwala, a community Seasonal campaigns conducted in Mitigation Information safety campaign different locations according to Programme incidents. Focus areas included road Business Plan: and pedestrian safety, water safety, Conduct seasonal Karabo Gwala Safety and fire safety Campaign Implementation of the City’s Injury 50% Prevention Programme Draft Framework completed with aspects of it being implemented. For Business Plan: example, safety kits were distributed Percentage development and to all volunteers Implementation of the City’s Child Injury Prevention Programme

Partnerships with institutions like the CSIR Weather service provides warnings and the weather service will be important Established partnerships with the for the early warning systems SABC and Prime Media to enhance the Early Warning System Finalisation of partnership with cell phone companies to utilise SMS for citizens that sign up is underway Implementation of 30% of waste/veld fire 21.7% reduction programme Juvenile fire setter programme established to educate youth about Business Plan: dangers of playing with fire Percentage (20%) reduction of fire incidents Citywide. Seasonal campaigns, including fire safety, conducted in different Business Plan: locations Conduct seasonal Karabo Gwala Safety Campaign Host the AED and CPRthon in partnership Ongoing awareness campaigns with NGOs, private sector, other conducted throughout the City in municipalities and spheres of government partnership with NGOs, private sector, to raise awareness of heart attacks and other municipalities and spheres of lifesaving measures (cardiac conditions are government. the second highest killers in the City)

184 185 IDP Programme 2008/09 Delivery Agenda Actual Performance Link the Disaster Management Centre to Weather service provides warnings the early warning systems e.g. weather Communications focus group service and CSIR established River levels monitored for flash floods Established partnerships with the SABC and Prime Media to enhance the Early Warning System Implementation of the fire prevention and Safe paraffin, stoves and candle energy use management programme in campaigns continue in hotspots like high risk informal settlements Mangolongolo, George Goch, Denver, Alexandra and Orange Farm Five-Year Strategic Efficient and effective response to Objective emergency incidents (100%) Emergency Response Establishment of the Professional reservist There were 880 reservists on the Improvement association database by the end of the 2008/09 Programme financial year. Collaboration with Business Plan: Urban Search and Rescue and CBRN Number (50) of professional reservists has been useful recruited Procure ambulance system (25 The total number of ambulances Ambulances) to address the risks available is 64. Although more associated with events in the city ambulances were acquired, some had to be written off Business Plan: Increase in number of ambulances and FF/ 1 169 FF/EMT were recruited EMT to improve the capacity to respond to emergencies Target to have 70 ambulances and 1 170 FF/EMT 33% implementation of the twinning 33% completed as planned. Twinning agreement programme of action (three- agreements with Matola and Greater year programme) Sekhukhune municipalities exist Ensure 100% operational capability of Modderfontein and Orange Farm the Urban Search and Rescue (USAR) fire stations were identified for task team Hazmat Operation. North View and Rietfontein fire stations were identified for USAR operation. Jabulani and Lonehill fire stations were identified for swift water rescue operation Equipment acquired for the operation and training of staff is ongoing Ensure terrorism and local operational Task team established for simulation capability for the Biological Chemical exercise, which was successful. Part of Radiological Warfare the exercise was the actual staging of the Confederations Cup 2009 Business Plan: Conduct multi-agency biological warfare/ terrorism exercise as part of emergency preparedness. National stakeholders targeted

184 185 IDP Programme 2008/09 Delivery Agenda Actual Performance six fire station renovations as part of the Six fire stations: facilities revitalisation programme, which Fairview, Midrand, Sandton, Florida, will include replacement/revitalisation Jabulani and Eldorado of equipment and facilities, and establishment of communication hubs Implement the three-year Equipment Programme implemented, with six Replacement Programme fire stations revitalised, including equipment replacement Appointment of 250 FF/EMTs A total of 1 169 FF/EMT were recruited Develop specialist teams according to Modderfontein and Orange Farm the risk profile where the stations will fire stations were identified for champion various risk areas Hazmat Operation. North View and Rietfontein fire stations were identified for USAR operation. Jabulani and Lonehill fire stations were identified for swift water rescue operation Equipment acquired for the operation and training of staff is ongoing Roll out the home finder programme to Piloted the project in Ivory Park other hotspots as identified where 40 Home Finder gadgets were installed on street intersections and shacks. Articles were published on all Caxton Newspapers Five-Year Strategic Vigilant custodianship of safety prescripts Objective Improve Compliance to Ensure 100% development of events 100% finalisation of the swimming by-laws management and swimming pool by-laws pool by-laws, which were published (to reduce incidents of drownings) for the second time in April 2009, with public participation processes taking place Ensure 100% establishment and Advanced fire investigation initiative capacitating of the Fire Investigations Unit was established by introducing a in fire safety forensic unit in fire safety, which will be finalised in 2009/10 Business Plan: 41.7% improvement Percentage (45%) improvement in building safety standard compliance levels in the Inner City in an effort to reduce unsafe buildings 100% compliance of the strategic About 59.5% of the 981 buildings buildings to the City’s by-laws inspected were compliant Ensure 100% prosecutions of the repeat 100% prosecutions in terms of fines building safety offenders (496 fines issued) Implementation of an early warning To be included in the SABS 0400 system for the City in residential National Building Regulation (process occupancies with the SABS) Conduct an audit of the extent of (100% audited) 705 inspections were exposure by the City to hazardous conducted, with 431 (61%) compliants materials (extent of unlicensed operations) The premises that do not comply are revisited to ensure compliance Business Plan: Percentage (100%) of the City audited The top five key exposure risks are to ascertain the extent of exposure to fuels, explosives, natural gas, Transport hazardous materials of goods and other chemicals

186 187 Completed development framework to revive selected industrial areas

186 187 4.12 Spatial Form and Urban Management Introduction The sector renders strategic spatial planning for the City, producing documents such as the City’s Spatial Development Framework (SDF) and the seven Regional Spatial Development Frameworks (RSDF), as well as precinct plans and Urban Development Frameworks (UDFs) for key development nodes such as the Gautrain precincts. The Department is also responsible for the management of the Alexandra Renewal Programme (ARP) and the Cosmo City Project and co-ordinating the implementation of the Inner City Regeneration Charter.

Through the Corporate Geo-Informatics (CGI) function, the sector is the custodian of the City’s cadastral data, which has applications and impacts in non-spatial areas, such as billing and revenue. The sector also has a legislated regulatory responsibility for processing town planning applications and building plans, and for enforcing town planning and building controls. Through its seven regional offices, the sector renders an urban management and service delivery monitoring function, whose primary concern is to ensure the maintenance of acceptable service levels across the City. The JDA is the ME that forms part of the cluster/sector.

The City relies on this sector for implementation of most strategic projects, which includes projects such as Cosmo City, ARP, BRT, Inner City Regeneration Charter and 2010 projects, hence pressure for the sector to deliver.

Summary of Overall Performance There were notable achievements made during the period under review on most of these projects. Performance highlights of this sector include:

• Promulgation of the Special Zone for ‘Transitional Residential Settlement Area’ in the applicable town planning schemes to advance the regularisation and upgrading of identified informal settlements, a critical programme for the City;

• Completion and subsequent approval of the development trends report and inclusionary housing;

• Completion of design guidelines for the Southern leg of BRT;

• The City Township Regeneration Strategy and Programme was approved, which promotes multi-sector and area based interventions to regenerate prioritised marginalised townships across the City. Some of the projects identified under this programme are co-funded with Neighbourhood Development Partnership Grant (NDPG) received from National Treasury. As such, the sector has appointed an overall programme manager to be the primary coordinator of the NDPG and all related issues with the City;

• An average of 94% completion of 20 capital projects implemented by JDA and includes Greater Newtown and Yeoville regeneration, BRT and 2010;

• Regions completed 260 by-law blitz operations of which 184 were targeting Region F only, as means of visibility and increasing by-law enforcement; and

• More than 215 000 additional street addresses and 100 000 sectional title units were captured on the CGI System.

188 189 Performance against Delivery Targets Table 4.13: Spatial and Urban Management Performance against Targets

IDP Programme Delivery Targets Actual Performance Five-Year Strategic Enhancement of the intensity of existing well-functioning nodes and transformation Objective of declining nodes to enable mixed-use, mixed-income, high-density development. Planned development of three new economic nodes in selected marginalised areas Nodal programme Assessment and determination of Industrial land study completed new spatial form for dysfunctional Development framework for industrial areas of industrial nodes Kew/Wynberg/Marlboro also completed and approved by Mayoral Committee Look at measures for spatial All existing frameworks for nodal programmes framework efficiencies are actively linked to capital budget process via CIMS Five-Year Strategic Increase in densities in nodes along public Transport routes in support of defined spatial Objective structure Density programme Development of a tool to measure Trend analysis conducted the impact of policy interventions

Finalise the development of Report on inclusionary housing completed and mechanisms (regulatory and approved by Mayoral Committee financial) for inclusionary housing Five-Year Strategic Corridors and mobility routes planned, developed and managed in the way that Objective supports the overall development framework of high intensity nodes on a lattice of connecting routes Corridor Develop institutional arrangements Update on mining related issues included in the development for the EWDC and the Southern revised SDF and relevant RSDF programme leg of the NSDC to support mining development Mobility routes Approaches to capture value from Design guidelines for southern leg of BRT development the development of mobility routes completed and approved programme and ensuring that this value accrues to the greater good

JDA programmes as an agency of the Reported under Transport sector Transport department – these will be detailed in the Transport department sector and business plans

Five-Year Strategic Minimised demand for investment and services on the urban periphery Objective Optimal utilisation of investment within the urban core (land, infrastructure and capital expenditure) Growth management Conclude assessments on market Investment framework concluded for priority programme and public led growth components, areas and finalise investment framework Fast-tracking and density bonus mechanisms based on this completed ad in process of implementation. Bulk contributions – new tariffs also approved Finalise policy choices for the City Public investment guided by investment based on the scenario projections framework and prioritised through CIMS, also incorporated into the IDP

188 189 IDP Programme Delivery Targets Actual Performance Five-Year Strategic Implementation of all public sector infrastructure investment to support priority nodal Objective development, movement, urban renewal and other city priorities Integrated public CIMS integration with Target not met, CAPEX budgets received from investment intergovernmental programmes Province not in line with City’s administrative programme initiated by the CSU regions hence could not be integrated into CIMS, awaiting updated information from Province. Cohering the applications and Citywide Township Regeneration Strategy projects funded from the NDPG and Programme completed and approved by Mayoral Committee Appointment finalised for the Deputy Director to be primary coordinator of NDPG and related issues at the City Five-Year Strategic Economic area regeneration programme Objective JDA: Continue with the work done with the following projects: • Randburg CBD regeneration • Greater Newtown Development – Central Place and Facilities for Moving into Dance • Greater Ellis Park - Northern Gateway and Bloemenhof Park • Park Station Precinct • Nasrec • Hillbrow Health Precinct • Fashion District • Rockey/ Raleigh street development Economic area Greater Newtown Work almost complete: regeneration Upgrade of Carr Street to link Upgrade of Carr Street 100% complete programme Fordsburg Structural repair and refurbishment of Kippies Structural repair and refurbish building near complete (88%) Kippies building and Workers Library Structural repair and refurbishment of Workers Library currently at 66% Upgrading of street lights completed Greater Ellis Park Sports precinct completed Gateways implemented: SAHRA process (heritage impact assessment) on • Saratoga Road from Hatfield to Bertram’s priority block completed Nugget • Sports Precinct • Smit / Wolmarans Street links to ICDS • Bezuidenhout Street to Market / Commissioner Street link to Troye Road (ICDS) • Completion of plan for Bruma to Ellis Park link for BRT Fashion District Upgrade along Pritchard Street into Urban Upgrade along Pritchard Doornfontein completed Street into Doornfontein comprising paving, street lighting and street furniture

190 191 IDP Programme Delivery Targets Actual Performance Greater Kliptown Upgrade of Kliptown parking almost complete Completion of Kliptown basement at 93% parking and revised urban design Kliptown urban review design also completed framework Park Station Precinct Upgrade of the holding spaces for taxis almost Development and upgrade of the complete at 91% vacant land opposite Metro Mall. Nasrec Precinct Stadium and League Avenues completed • Complete construction of the Phase 1 of FIFA overlay also completed pedestrian promenade linking the Pedestrian promenade completed as part of JRA stadium to the taxi rank projects Yeoville Regeneration Refurbishment of Yeoville Library completed Completion of the civic node and (L 005) new public facilities on the corner of Refurbishment of Yeoville Recreation Centre Bezuidenhout and Rockey including completed according to 2008/09 project plan public ablutions and a taxi holding (66%) space Five-Year Strategic Increased investor confidence in declining and under-performing areas Objective Public investment in marginalised areas to facilitate crowding in of private sector spending Upgrading of Implementation of the Vilakazi Street Phase 1 which involved construction of Mema marginalised areas Precinct upgrades and Vilakazi Street upgrade on schedule programmes (UMAP) according to project plan with the contractor already on site. The project is scheduled to be completed in the 2009/10 financial year Consolidation of a multi-year Soweto Will be an outcome of the Soweto Urban Development Business Plan Growth Programme Integrated response to Region G Some of the townships within Region G (Orange Farm and Lenasia) forms part of the City’s Township Regeneration Strategy, programmes already identified for implementation in 2009/10 Informal Settlements Implementation of the Informal The general clause amendment which added Upgrading Settlements Formalisation a definition for ‘Transitional Residential Programme (with Programme Settlement Area’ was promulgated in the Housing) applicable Town Planning Schemes The City commenced with feasibility studies to inform layout plans for those settlements that can be upgraded in situ Communication sessions underway to inform Ward Councillors and interested and affected parties of the programme

190 191 IDP Programme Delivery Targets Actual Performance Inner City Implementation of year two of All projects are more than 96% complete Regeneration all Charter commitments, both including Hillbrow/Berea/Yeoville areas Programme programmatic and capital based. The public environment upgrade CAPITAL programme will focus primarily on implementing upgrade projects in Doornfontein, New Doornfontein, Pageview and Vrededorp

Deliverables will also include the completion of certain projects in the Hillbrow/ Berea/ Yeoville areas: Sanitary lanes in Hillbrow; Governor’s House; Quartz Street market Pullengerkop/Ekhaya open space

Five-Year Strategic Design and implement codes to create safer communities, legibility, functionality and Objective aesthetics of the urban environment Urban design Establishment of external design Programme could not be initiated due to programme panel to entrench compliance with budget constraints TOD guidelines

Implement a decision and evaluation In progress through SDPEC framework to translate urban design guidelines into the development application process

Finalise and implement guidelines Guideline book published and integrated into for Crime Prevention Through citywide spatial policy documents Environmental Design (CPTED) CPTED guideline proposal to be submitted for NDPG funding Five-Year Strategic Increase in investment of affordable housing in close proximity to public Transport Objective and designated nodes; Increased accessibility to social, economic and environmental infrastructure (thresholds to be determined); Increase in the percentage (or number) of areas that have achieved a minimum acceptable level of SHS; Increased investor confidence in declining and underperforming areas; and Public investment in marginalised areas to facilitate crowding in of private sector spending Sustainable human Support for the roll out of No progress due to budgetary constraints settlements community driven precinct planning programme from marginalised areas

Increase the coverage of the No progress due to budgetary constraints regulatory framework to marginalised areas

Host a Soweto Summit The Summit had to be deferred to 2009/10 due to other Mayor’s priority commitments Five-Year Strategic Improved efficiency of development application processes with specific reference to Objective priority areas

192 193 IDP Programme Delivery Targets Actual Performance Development Continue implementation of Various mechanisms are in place to improve application improvement measures and systems, the quality of decisions. Further proposals were management particular focus will be given to made and will be implemented in the new improvement reducing the turnaround time for performance year programme rezoning applications to nine months Turnaround times were maintained in the last quarter of the year but challenges with application requiring park contributions due to implementation of Rates Act, remedial options being explored Five-Year Strategic New Land Use Management System implemented. Package of mechanisms and Objective instruments to facilitate regeneration implemented. Creative rezoning for mixed use development Land use Establish regulatory environment to Planning and Housing Liaison ongoing management give effect to inclusionary housing programme Complete legal process up to and In terms of progress on the consolidated including promulgation of the new town planning scheme, the scheme clauses consolidated town planning scheme (Part A) had to be scaled down to proceed in terms of the 1986 Ordinance, as Province has produced a further draft Gauteng Planning and Development Bill to replace the existing Gauteng Planning Act therefore rendering a legal vacuum. The scheme clauses have now been adjusted to a consolidation of all the relevant schemes, which has the benefit of a standardised and uniform set of rules that will be applicable in the City but is not entirely the modern scheme that was initially intended. Council approved the consolidated scheme clauses with promulgation anticipated to be finalised in the in 2009/10 financial year Five-Year Strategic Standards and guidelines for urban management developed and instituted. Objective Quality improvements in the urban environment and improvements in citizen satisfaction with quality of life Urban Management Institutionalise proactive urban Regions are in the process of implementing Programme management interventions strategic initiatives to deal with urban decay in in support of planned CAPEX their areas Investment Regions consult with MEs on support for their programmes for CAPEX Implementation of interventions in 25 Operational plans have been submitted by priority areas in a region all Regions excluding Region F Regions are currently in the process of implementing interventions according to the operational plans Support for the establishment of A report on RCID stipulating the new approach CIDs in certain areas to consider these applications and also to develop a new policy for consideration and approval of RCIDs has been approved and is to be implemented soon Blitz operations targeted at regional A total of 260 by-laws Blitz Operation law enforcement and identified completed, follow up underway on statutory priority areas notices served during these operations

192 193 IDP Programme Delivery Targets Actual Performance Five-Year Strategic Automate, enhance and integrate prioritised spatial information processes and systems Objective GIS System LIS Phase 3 Delays with the development of LIS Housing Development projects due to funding constraints but project Programme to be done during 2009/10 IMS Property Text enhancement was implemented in-house (CGIS) Environmental Impact Assessments (EIA’s) and Record of Decisions (ROD’s) captured/scanned and added to the mapping website Implement Phase 2 of the spatial Application development completed trend analysis

Roll out the RUMPS monitoring Busy with technical specification document for systems for all regions the system, roll out of the system to the other regions to follow soon Five-Year Strategic Maintain core spatial datasets according to service level agreements (SLA) Objective Spatial Information New aerial photography for Phase 1 Flight plan approved and flying to commence Maintenance of 2009 soon Programme Five-Year Strategic Provide accessible spatial information dissemination services for the City’s communities Objective Spatial Information Establishment of customer 215 000 additional addresses captured 100 000 Dissemination segmentation system sectional tile units captured on GIS Service Programme Electronic zoning certificates Electronic zoning certificates system (Phase 1) implemented already and verification also completed Geo-science skills Develop the Spatial Information Spatial Information Policy completed and signed development, Policy for the City off by MEs. research and development (R and D)

194 195 Constructed approximately 21 lane kilometres and 20 stations for the Rea Vaya Bus Rapid Transit

194 195 4.13 Transport Introduction In the institutional refinement undertaken at the start of the new five-year term, Council established the new Transport Department, and this department, together with the Johannesburg Roads Agency (JRA) and Metrobus form the Transport Cluster. The Transport Department provides the strategic and policy direction as well as contract management on behalf of the City with the JRA and Metrobus.

The Transport sector continues to deliver Transport services in terms of the approved 2003/08 Integrated Transport Plan (ITP), which was approved by the Council, the Gauteng MEC for Public Transport, Roads and Works and the Minister of Transport. This was updated in 2004. In terms of legislation, a major ITP Update was required in 2007/08 and this will set the foundation for service delivery for 2008 to 2013.

Summary of Overall Performance The 2008/09 financial year has been one of the most demanding and challenging the sector has ever seen, with the BRT programme, FIFA Confederations Cup 2009 Transport requirements, as well as the month-long Metrobus strike. Furthermore, the floods that hit Soweto earlier in the year required the swift action and allocation of resources by JRA to solve the problems and avoid similar incidents in the future. Performance highlights of this sector include:

• The sector has intensified its travel value programmes awareness initiatives. Some of the initiatives during the period under review include education programmes for schools to highlight travel values, dissemination of information in public transport, partnering with media to promote values as well as ward-based process plans. A number of activities were implemented during the October Public Transport Month and include a train the trainer programme, testing of vehicle emissions as part of raising awareness on vehicle emissions and air pollution;

• BRT Phase 1A completed despite delays caused by challenges with stakeholder engagement (taxi operators) in particular. Work concluded includes construction of approximately 20,6 lane km and 20 stations as well as completion of a call centre. Work also started on Phase 1B. The City continues to publicise and raise awareness about BRT to increase buy-in through the BRT website, which has been developed and updated daily, and through other media such as posters;

• The City continues to work with other Government spheres as part of intergovernmental transport planning (ITP). The City has partnered with Gauteng Province Roads, Public Works and Transport on Doornkloof gravel road surfacing, Thulani Road and construction of the June 16 trail (11,9 km completed for the June 16 trail);

• Customer relations have been enhanced at Metrobus with more than 90% of queries resolved within a target of 7 days. There has also been a decrease in the number of complaints, with most complaints received about drivers’ incompetence. This is being addressed through training;

• A month-long Metrobus strike by bus drivers nullified the inroads made in increasing the number ofbus passengers resulting in year-on-year negative passenger growth;

• The City continued its support and integration with Gautrain; an Infrastructure Integration Committee has been set up to ensure integration and alignment; integration has been achieved so far at Park, Rosebank and Sandton BRT stations;

• Work underway in implementation of the transport component of Nasrec (65% complete) and Ellis Park (1005) precincts in preparation for 2010. A total of 482 road signs were erected in time for the FIFA Confederations Cup 2009, and the same signs will be used for the 2010 FIFA World Cup. The City is confident that outstanding work will be completed by March 2010 in time for the 2010 FIFA World Cup;

196 197 • More than 20km gravel roads were resurfaced in marginalised areas (Orange Farm, Diepsloot, Doornkop, Ivory Park). Construction of Koma Road was completed and officially opened on 16 June 2009;

• Good progress was made with the implementation of the roads maintenance plan, with about 137km resurfaced; more than 90% of identified potholes were fixed within three days. The plan has been complemented by the development/review of the Roads Master Plan and Visual Condition Index (VCI), also completed during the period under review;

• The review of the Bridge Management System was completed, with 804 bridges under JRA management, and the update of the system allowed for identification and capturing of the current bridge structures and their conditions;

• Significant progress was made with the implementation priorities (first priority for each ward) identified by communities in ward-specific transport safety plans. A total of 107 plans were implemented; and

• BRT emissions baseline study is underway and involves assessing potential impacts of BRT through reduction of the number of vehicles thus associated emissions within BRT route.

Performance against Delivery Targets

Table 4.14: Transport Performance against Targets

IDP Programme Delivery Targets Actual Performance Five-Year Strategic Reduced incidents of violent behavior on roads Objective Reduced incidents of vandalism on busses on busses Travel Values Programme Intensify roll out of “travel External communication has begun in public values” to internal City transport facilities in each region stakeholders and external Travel Values have been incorporated into the community Mascot and Mobile Education programme Safety education, including the use of the Mascot and Mobile Education Unit, at schools in Ivory Park, Soweto, Inner City, Orange Farm and Alexandra, as well as traffic training at the BE SAFE centres located in these areas An extensive ward-based process in partnership with CSIR identified two traffic safety interventions per ward Industrial theatre based on safety issues and values is being developed JRA partnered with Talk Radio 702 on the Fly the Flag (pothole identification) campaign which would mobilise communities to prepare for the 2010 FIFA World Cup Extend “travel values” Values inscribed at head office building and to programme to Rea Vaya be extended at the Bara, Midrand Ivory Park and BRT/Safety Programme Randburg taxi ranks and all programmes of the Values programme taken to Metrobus employees Department and passengers Five-Year Strategic Improved awareness in communities of Johannesburg’s transport history, evolving Objective transport system, and how best to use facilities and infrastructure

196 197 IDP Programme Delivery Targets Actual Performance Transport information Incorporate the dissemination Metrobus and JRA call centre staff have moved to and awareness of traffic information within Operation Phakama facility the proposed Disaster Ongoing information on traffic interruptions as a Management Centre result of implementation of BRT

An improved October Successful implementation of the 2008 October Transport Month Transport Month Programme: A train-the-trainer programme was implemented Focus on all city regions during the October Transport Month 2008 School competitions that peak in October Showcasing Rea Vaya milestones that highlight focus on values Metrobus: Most valued driver JRA: Letsema To run an oral history project Book on history of Transport, called “The People that builds on the work that Shall Move” published has been captured thus far To update the exhibition with developments on Rea Vaya To have the information available in all city libraries and the exhibition housed permanently in an appropriate location. Launch mascot and utilise Be Safe centres in partnership with EMS Five-Year Strategic Phase 1 of Rea Vaya BRT implemented Objective Reduced average public transport travel times on selected BRT routes as measured by a five-yearly survey, or improvement on a mobility index to be finalised Bus Rapid Transit – Rea Continue with BRT Construction contracts for 1A are completed in Vaya infrastructure construction (i.e. lanes, readiness for commencement of BRT operation of programme stations and depots) for Phase 1A, and work will continue towards phase Phase 1 and open Phase 1A 1B for 2010 of Rea Vaya BRT system in Lanes constructions: 20.6 km completed, some of April 2009 the works concluded Section 1 – Regina Mundi to Modderspruit Culvert Nasrec Phase 1 Nasrec 2A Market, Commissioner, Troye and Mooi Streets Ellis Park – Bertrams and Saratoga Smit and Wolmarans Streets ITSC Link complete Sections 3 and 5 (towards 1B) continuing

Stations: 20 stations required for the start of Phase 1A operations have been completed thus exceeding target of 18 stations. Further the Station at Edith Cavell and Kotze St. which is a Phase 1B deliverable also completed Depots are currently being investigated

198 199 IDP Programme Delivery Targets Actual Performance Implementation and JRA, BRT backup control centre completed commissioning of BRT Intelligent Transport System about 90% complete, Control Centre and although target was not met most ITS contracts Intelligent Transport System were completed with the exception of APTMS (to for Phase 1A in April be completed in Sep 2009) 2009 Continue with the The City is currently in talks with affected public implementation of other BRT operators: work-streams i.e. Legal, MoU signed between the City and Metrobus and Funding, Stakeholder Putco Management, etc., and Discussions underway for concluding BRT continue to ensure that the agreements with Taxi Operators. A facilitator was project is managed with appointed to facilitate negotiations between the integrity through the use of a City and taxi operators on the City’s offer and probity advisor initial talks already commenced Services of two probity advisors secured, their work included auditing procurement BRT fleet and facilitation of compilation of risk register for BRT and monitoring progress of the project to identify abnormalities Rea Vaya website operational and updated daily Call centre also 80% complete with training completed and currently updating the IVR line Five-Year Strategic Reduced average public transport travel times on selected BRT routes as measured Objective by a five-yearly survey or improvement on a mobility index Improved satisfaction on the CoJ annual customer satisfaction survey Bus Rapid Transit – Existing taxi and bus The finalisation of the operator business plan Rea Vaya operations operators contracted to has been affected by the delay in concluding the programme supply and run the Phase 1A BRT agreements with affected public operators BRT buses. Continue (taxi operators in a case of Phase 1A). However with the following for negotiations are underway to finalise the Phase 1B: taxi operator agreements liaison, bus operator liaison, Eight taxi drivers and mechanism have been Business Plan and operator identified and taken for assessments for the train capacitation the trainer course. Once trained they will act as supervisors and mentors of taxi operators on the ground once BRT is running full steam Service development and Fleet procurement contract awarded to Scania and operator contracts all 143 buses received and checked for compliance developed for Phase 1A including environmental requirement, 75 buses already with the City HSBC appointed to assist with funding model – bus purchase and promotional road shows Institutional plan and Section 78 assessments concluded on alternative Phase 1A implementation institutional plan for the implementation of completed BRT and recommended a ring fenced business unit within Transport Department for Phase 1A implementation Phase 1A institutional structure approved and process of filling vacant positions already underway Five-Year Strategic Agreement of and implementation of approved option for a Transport Authority Objective

198 199 IDP Programme Delivery Targets Actual Performance Intergovernmental Work with Province in Partnership with Gauteng Province Roads, Public transport planning the Gauteng Transport Works and Transport on Doornkloof gravel road Management Authority surfacing, Thulani Road and construction of the June 16 trail

As per the legal requirement Target not met due to funding constraints, further (NLTTA), the entire ITP the City took a decision to defer the review of 2003/08) will be revised for ITP as the Provincial integrated network design another five year period, (IND) project and the BRT both underway will also with a community-based bring major changes to the City’s Public Transport focus landscape Five-Year Strategic Improved level of service to Metrobus users from “X” to “Y” Objective Metrobus-Specific Participate as an operator MoU signed between City and Metrobus. Programme in Phase 1A, the nature Metrobus is not affected by BRT Phase 1A in terms of the involvement will be of removal of buses in this route. Furthermore, determined by the results of there is ongoing liaison and communication the study between Metrobus and CoJ Transport about signing of BRT Phase 1A operating contract Continue to enhance More than 90% of queries received were customer-focus in all responded to in time, within seven days Metrobus endeavours Although there was significant passenger growth in the first three quarters of the year, there was a negative (-6.44%) passenger growth mainly due to a month-long Metrobus strike in the last quarter of the year There has been a decrease on quarter to quarter on complaints received and most complaints relates to driver deficiencies and being addressed through training Monitor and refine fleet Improved fleet management through replacing the management and also existing Fleet Anywhere with the Enterprise Asset integrate the Integrated Management System of Oracle Ticketing System in to BRT Ten old ERF buses refurbished to enhance the condition of the fleet

Training the remaining staff 33 of 40 learners offered employment at Metrobus and recruiting 40 learners. Wellness training of fifteen supervisors on HIV and Continue with wellness Aids conducted in August 2008 programmes and driver incentives

Improve safety and security Safety and security at Metrobus upgraded, at other depots including the installation of electric fencing and CCTV systems at depots All the non-BRT Operating Target not met due to delays from taxi operators Licenses will be regularised objecting to the conversion

Five-Year Strategic Gautrain infrastructure and services well-integrated with other transport modes Objective and services

200 201 IDP Programme Delivery Targets Actual Performance Gautrain Support Ongoing monitoring of the A full visual inspection was conducted of all mass haulage routes haulage routes prior to construction and to be repeated after construction of Gautrain. Province will re-instate the routes to their original condition with a seven-year functional life BRT Phase 1A stations will be Infrastructure Integration Committee has been operational to integrate with set up and a common understanding has been Gautrain reached Good integration achieved so far at Park, Rosebank and Sandton BRT stations Five-Year Strategic All Bid Book commitments in respect of transport services and times delivered in Objective terms of the approved high level 2010 Transport Plan for the 2010 FIFA World Cup transport infrastructure and services designed to ensure lasting value for the City 2010 FIFA World Cup Together with SANRAL, Work underway to implement Transport programme continue to implement N17 component of Nasrec and Ellis Park precinct in to link Soccer City preparation for 2010 Ellis Park: sports precinct and following packages also 100% completed: upgrade of Concourse and Currey Streets (Package 1); Doornfontein Station Precinct Upgrade (Package 2); Bertrams Park and Maurice Freeman Park Upgrading (Package 3); Voorhout, Miller and surrounding streets: Paving and landscaping (Package 4) Nasrec Precinct: 0ver 65% of the plan implemented and include: Construction of Golden Highway (40%) Procurement of street lights Kerbing Public Transport hub (88%) Structural steel roof (100%) Paving (90%) Pedestrian promenade (90%) Construction of Nasrec railway station Landscaping (30%) All work scheduled to be completed by March 2010 Begin to “Stress Test” The Batho Pele Centre which serves as a backup Transport operational centre for BRT/ITS/JMPD/JRA/ITS and EMS plans for Ellis Park and also completed. The Centre was tested during the continue to upgrade Park Orlando Pirates and Chiefs match at Ellis Park and and Ride sites and services further used as CoJ disaster management centre for special events during the 2009 FIFA Confederation Cup

Run at least ten Park and Four Park and Ride simulations have been done Rides for major events including the Orlando Stadium launch

Implement new accredited Programme could not be done due to budgetary metered taxi services on at constraints least 500 metered taxis Five-Year Strategic 250 km of remaining gravel roads surfaced Objective

200 201 IDP Programme Delivery Targets Actual Performance Citywide Gravel Roads Incremental implementation 20.7 km gravel roads surfaced against target of Surfacing Programme of backlogs. Implement a 33 km, target not increased mainly due o increase total of 33kms in the in cost per kilometre, gravel road surfaced include: two areas Orange Farm: 9.6km Ivory Park: 3.8km Diepsloot: 3.2km Doornkop: 4.1km Target will be 33kms in Already reported above: Target not achieved a total Orange Farm and Ivory Park of 16.74km achieved against target of 23.3km, mainly due to increase in cost a kilometre Five-Year Strategic 50km of lane constructed Objective Road Infrastructure Complete the construction of K43 has been stopped due to illegal informal Development Programme Crownwood Road, Boundary settlement Road, K43 and Bolani Road Bolani Road is in the planning phase with outstanding work to be completed Investigations have been conducted for Odendaal Road and other access roads Construction of Coma Road completed and officially opened on 16 June 2009. The project entailed the construction of 2.4km a dual carriageway with kerbing and paving on sides, new stormwater reticulation, relocation of services, street lighting, and landscaping Technical investigations and The construction of the June 16 Trail has implementation for the completed (11.9km) and was undertaken in the following major roads will following areas: commence in 2008/09: Meadowlands (Students) – Bickley street Dualling of Bolani Road near Diepkloof (Madibane) –Immink Street Jabulani Mall Dube (Musi High) – Modjadji Street Dualling of Main Reef Road Molapo (Naledi High) – Masiane Street off Roodepoort Road Dube (Naledi High) – Mahalefele Street Dualling of Modjadji Road on Orlando West – Khumalo Street the Soweto Tourism Route Upgrading of Tsolo Road from Sofasonke along Nancefield Five-Year Strategic Improvement in the visual condition index by 2% Objective Road Infrastructure Maintain 500km of existing 137 lane km resurfaced as part of the Maintenance and surfaced roads implementation of roads maintenance plan. Upgrading Programme Annual target of 110 lane km was exceeded 92% of potholes identified/reported were completed within three days, actual slightly below target of 95% however there has been a significant improvement particularly in the last quarter Do a snap survey of the road Roads Master Plan completed and included: condition and compare to development and reclassification of existing roads the 2007/08 condition network to RISFSA; development of the future five- and ten-year functional network hierarchy. Costing and prioritisation of networks

202 203 IDP Programme Delivery Targets Actual Performance Do a Visual Condition Index Visual Condition Index conducted, has dropped (VCI) every three years from 74% (2003) to 68% (2008) and indicated that more than R280m was required for the next five years to restore and improve conditions of City’s roads Five-Year Strategic Reduction in traffic signal outages to less than 1% of all signals out on any Objective given day Traffic Signal Upgrade Implement 35 new signalised 33 signalised intersections upgraded to SARTSM and Maintenance intersections, upgrade 800 compliance standards (Q4) Programme intersections, and 400 All five designs completed for the new installations phasings to comply with Upgraded 174 intersections by end of December South African Road Traffic 2008 to comply with SARTSM standards Signs Manual (SARTSM) Undertaken 3 965 proactive inspections at signalised intersections by end of December 2008 Improve the existing 301 signalised intersections converted into systematic traffic signal uninterruptible power system (UPS), mainly along maintenance programme BRT route. Target of 300 met To improve reaction times to Connected 130 intersections to the remote faulty traffic signals, expand monitoring station and upgrade Urban Traffic Control system throughout the City, and bring all 300 Phase 1A intersections on to remote monitoring Five-Year Strategic Percentage of all major intersections provided with adequate road signs 8 000km Objective of thermoplastic lane markings provided Road Signage Upgrade Continue to implement road 482 road signs erected in time for FIFA Programme signs at major intersections Confederations Cup 2009 and exceeding annual to ensure compliance by target of 273 signs. Same signs will be used for 2010 2010 FIFA World Cup

Implement all approved 1 400 approved street names erected in the street name signs on all City following areas: roads by 2010 Far East Bank and Tsutsumani: 93 Diepsloot: 551 Mayibuye: 259 Klipfontein: 117 Tshepisong: 380 Provide and maintain all 472.4 lane km of road marking have been painted road markings in all regions 127.3 lane km of thermoplastic paint have been (1 800km) painted

Five-Year Strategic Improved stormwater infrastructure and management systems across Objective Johannesburg Stormwater Development Target is to assess Investigating all open stormwater channels to cost and Management Stormwater catchments them in Orange Farm, Diepsloot and Ivory Park Programme (there are 12 river systems Update of the Bridge Management System and 27 catchments, of which completed and additional information on 96 18 have been done) bridge structures and conditions captures, which brings bridges under JRA to 804

202 203 IDP Programme Delivery Targets Actual Performance Repair critical Stormwater Over 46 350 stormwater pavement inlets were canals, spillways, cleaned, below the target of 48 000 a year. embankments, channels Under variance mainly attributed to redirecting of and outlets, which are resources to priority events within the City during conditional on Environmental the course of the year Impact Assessments Number of recurring blocked pavement inlets reduced by 35% Five-Year Strategic Reduced incidents of crime on public transport and in facilities Objective Reduced number of traffic accidents Improved roadworthiness of public and private vehicles Reduced number of public-safety incidents arising from poor quality transport infrastructure maintained by the City Reduced safety incidents at river crossings Transport Safety Extend engineering, 117 pedestrian safety awareness programmes Programme education and enforcement jointly conducted with other departments and interventions to MEs, exceeding target of 110 Braamfontein, Lenasia, Orange Farm, Ivory Park and Zandspruit, together with 110 awareness programmes Implementation of at least Out of 109 ward plans, the implementation of a single priority intervention priority 1 has been completed in 107 wards. for each ward, as detailed in However in 2 wards it was not possible to the community road safety implement priority number due since the requested plan intervention was beyond the scope of this project, i.e. there were requests for traffic lights and resurfacing of roads Continue to reinforce 20 schools visited between Ivory Park and “rules of the road” and the Alexandra as part of transport education and values programme using awareness programme the Mascot and the Mobile Education Unit Five-Year Strategic Reduce the percentage of households spending more than 10% of their monthly Objective income on travel Affordability Provincial and Gautrain bus Participated in provincial bus contract re-structuring Improvement Programme services rationalised and and Gautrain bus service rationalisation integrated with Rea Vaya BRT system Five-Year Strategic Increased use by PWDs of the public transport system Improved accessibility to Objective private and public transport in marginalised areas Transport Access All Rea Vaya BRT services Super Fleet supplying a car for the disabled Improvement Programme accessible to people with disabilities and lined to non- motorised transport Continue to improve Approval process for rezoning applications reduced turnaround rate for significantly to an average of 17 days to process processing development exceeding target of 30 days applications and implement revised development contributions policy

204 205 IDP Programme Delivery Targets Actual Performance Five-Year Strategic Reduce perecentage of commuters participating in Travel Demand Management Objective (TDM) programmes Improved off-street and on-street parking provision, pricing and management Travel Demand Implementation of initiatives The City initiated an e-mail response from the Management (TDM) to reduce the number of public highlighting their suggestions for the private cars on the roads in reduction via the Joburg website in respect of TDM the city Five-Year Strategic Improved Percentage of residents who could otherwise access motorised transport, Objective walking or cycling to work, shops and schools Reduce exhaust emission levels Sustainable transport Continue to implement Extensive NMT measures introduced at Ellis Park Non Motorised Transport and NASREC Precincts as part of 2010 plan and integrate it with Council has approved Non-motorised Transport Phase 1 A of BRT and the Framework development of cycling lanes in Johannesburg Develop and implement a CDM Baseline methodology finalised with CDM process for carbon service provider appointed to facilitate the CDM credits for the Rea Vaya BRT application on behalf of the City system Monitor emissions with BRT emissions baseline study underway and Environmental Department involves assessing potential impacts of BRT through on the Phase 1 of BRT reduction of number of vehicles thus associated emissions within BRT route Five-Year Strategic A record of proactive adoption of appropriate cleaner production technologies and/ Objective or initiatives Transport Infrastructure Implementation of the Asphalt plant undergoing major refurbishment Resource Conservation turnaround strategy for the which includes repairs to the electrical and Programme asphalt plant conveyor belt systems (Phase 1 – already completed) for improved efficiencies and supply capabilities to depots 50km targeted Five-Year Strategic Diversification in ownership of transport operations to BEE players Objective Significant progress in implementation of taxi recapitalisation Improved satisfaction of public transport commuters as measured either through the City’s customer satisfaction survey or a dedicated five yearly survey Industry normalisation Implement lay-bys and 20 formal ranks, 100 stops, lay-bys and 209 BRT and restructuring shelters on non-BRT public stops identified through the designation process transport routes, according were advertised on the government gazette and to list developed 2 national newspapers to confirm for the final designation and invite comments from the public. The advertisements were both in English and isiZulu as required. All the comments received have been responded to All formal facilities must be All 1 013 non-conflicted routes have been managed aligned in reparation for conversion of permits to operating licences Five-Year Strategic Improve the monitoring of Freight Transport Objective Continue to implement Commissioned study on improving freight infrastructural and management at City Deep operational improvements to City Deep

204 205 FIFA and Mayoral Legacy Projects

206 207 4.14 Preparation for the FIFA Confederations Cup 2009; 2010 FIFA Soccer World Cup and Mayoral Legacy Projects Introduction The strategic vision for Joburg 2010 is to ‘host the best World Cup ever’. This vision means that the CoJ must surpass the rigorous standards of excellence set by predecessors and combine it with the warmth, generosity and welcome of an African experience. A framework to achieve this vision has been developed. It identifies the three levels and imperatives of delivery:

• Fulfil FIFA’s contractual requirements (compliance) specified in the government guarantees and the host city agreements, inclusive of specific aspects pertaining to stadiums, training venues, safety and security, city by-law implementation, accommodation, ICT, marketing and branding;

• Deliver an outstanding fan experience (leverage), which refers to optimisation of all the leveraging that can be gained from the infrastructure and services required for the event to guarantee the fans a superb experience. The focus is on the needs of the fans and the media that will be in the City for the event; and

• Create long-term benefits for the citizens (legacy) to ensure long-term and sustainable benefits to the citizens long after the event is over

During the FIFA Confederations Cup 2009, the City had the task of hosting the following activities: official opening ceremony; opening match between South Africa and Iraq; semi-final and an official closing ceremony. The hosting of the FIFA Confederations Cup 2009 provided the City with an opportunity to glean valuable lessons from the experience.

While the City pulled out all the stops to use this event as a window onto the 2010 FIFA World Cup, a number of elements of 2010 readiness were not requirements of the FIFA Confederations Cup 2009 – Soccer City, fan fests/ parks, the International Broadcast Centre, all Mayoral legacy projects and some FIFA events to be hosted in 2010.

The FIFA Confederations Cup 2009 also provided the City with a platform to showcase its preparedness in terms of stadia and training venues, transport systems, security plans, social and cultural programmes as well as other features associated with the tournaments. The preparation that went into the tournament has gone a long way in determining our preparedness for the 2010 FIFA World Cup in June. The following sections highlight some of the project areas the City uses to test its readiness for the FIFA event in 2010.

Stadiums, precincts and training venues

Stadiums

Since the awarding of the 2010 FIFA World Cup to South Africa in 2004, it was clear that the two major venues identified in Johannesburg required substantial refurbishment to meet the requirements of FIFA. What was the FNB stadium had to be completely demolished to make way for Soccer City.

Ellis Park was handed over to FIFA in February 2009, proof that Johannesburg was ready to host the FIFA Confederations Cup 2009. The Ellis Park renovations consisted of a new car park, renovations of the VIP facilities and change rooms as well as additional seating and a roof. Cosmetic changes to facades have also been undertaken. Ellis Park was the major centre of footballing activity during the Confederations Cup. The stadium hosted the official opening and closing ceremonies as well as the final match for the tournament.

Although the Ellis Park stadium’s renovations were minor in comparison to the Soccer City rebuild, significant regeneration of the surrounding precinct was required. The surrounding precinct is receiving a multi-million rand cash injection to regenerate the urban environment – an investment unlikely to be possible without the 2010 FIFA World Cup.

206 207 Precincts

The Ellis Park precinct was regulated as a commercial exclusion zone during the FIFA Confederations Cup 2009. The purpose of an exclusion zone was to regulate business in the immediate vicinity of match stadia in order to prevent ambush marketing and the proliferation of inauthentic football merchandise.

Training Venues

All four training venues (Rand, Orlando, Dobsonville and Ruimsig stadiums) are complete and were ready for use during the FIFA Confederations Cup 2009. Furthermore, the stadium upgrades are going to generate an economic impact through improved services and infrastructure in the surrounding areas given the massive investment of R920 m for training venues and precincts alone.

Supporting Infrastructure

Transport

The City of Johannesburg is implementing a transport strategy that will fundamentally transform the public transport experience. The new transport system has three main aims: firstly to channel public transport into focused, high frequency corridors; to provide improved access between residential areas and economic nodes; and to allow for better law enforcement on public transport. The transport system will be implemented in a phased approach.

The transport operational plan seeks to provide the City with all the relevant information necessary to support the planning, management and provision of Transport across all modes for the 2010 FIFA World Cup. The transport operational plan was implemented during the FIFA Confederations Cup 2009 and will do so again during the 2010 FIFA World Cup.

The plan aims to integrate transport in terms of the existing freeway system and Rea Vaya BRT, with a specific focus of linking the north-south corridor that links Soweto, through Parktown to Sunninghill with extensions to the match venues and the Inner City distributions system. Further integration refers to the Gautrain rapid rail link from the airport to Sandton, as well as future links and upgraded Metrorail links at Park Station, Nasrec, Ellis Park and Orlando.

Park and Ride facilities

The following are some of the lessons learnt in relation to this cluster:

• Park and Ride facilities were a critical element for FIFA Confederations Cup 2009. However, the issues of park and ride venues should be communicated in advance and signage should be improved to attract the general public; and

• Involvement of Council officials as volunteers at the park and ride sites

Rea Vaya Bus Rapid Transport System

Logistically, there are 13 sections to the Rea Vaya BRT system project under construction for the 2010 FIFA World Cup. There is a lengthy section from Regina Mundi in Soweto, south of Johannesburg to Sunninghill on the northern border of the City and a variety of auxiliary routes from suburban and central business district areas to relevant intersections of contemporary Johannesburg. Major achievements in the transport project area is the confirmation of the specific details of the 2010-aligned Rea Vaya BRT route, the location of the 2010-aligned Rea Vaya BRT stations and significant progress towards construction and completion.

The project will be implemented in phases. In preparing for the 2010 FIFA World Cup, the City intends to roll out Phase 1A of Rea Vaya BRT by September 2009 which includes 300km of trunk routes, 18 stations, a BRT operating company, a control centre and fare system, AVL, VMS and CCTV.

208 209 Health Safety

During the FIFA Confederations Cup 2009 a strong emphasis was placed on environmental health with a focus on the monitoring of water and food quality, pollution controls and readiness to deal with any crises. In preparing for the FIFA Confederations Cup 2009, several (1 000) food traders were trained and the verification process for the standard of food preparation and cleanliness of bed and breakfast establishments (BandB) was rolled out.

Emergency Management

The interim plan used for the FIFA Confederations Cup 2009 included the use of the JRA control room as the joint command back-up centre. Lessons that emerged for the hosting of the Confederations Cup are that a number of compliance requirements in terms of disaster management plan should be finalised urgently. There is also a need for the City to finalise all labour issues before to the 2010 FIFA World Cup.

Safety and Security

The safety and security strategy for the FIFA Confederations Cup 2009 was implemented. The City of Johannesburg complied with all the necessary safety and security standards expected by FIFA and confirmed in the City’s submission to FIFA with the Local Organising Committee (LOC). The plans also include measures for crowd control at the stadiums, and safety plans near hotels.

Lessons emerging from the FIFA Confederations Cup 2009 in relation to safety and security are that there is a need to employ an additional 1 500 JMPD officers and key personnel for EMS to deal with 2010 pressures. There is also a need to invest in GIS technology to be utilised by all the City’s departments and SAPS to share information and plan for activities.

2010 Readiness Below is a table indicating Phase 1A readiness in relation to key work streams as at end June 2009:

Work stream Readiness Infrastructure On track to complete majority of dedicated lanes and stations by end June. Stations in the process of being handed over to the MTC. Even if the present strike is protracted, it should not disturb these timelines Intelligent Work is progressing but behind schedule due to problems of procurement and inadequate Transport project management. Systems APTMS design finalization is progressing well. Protocols are being designed to support the functions of all systems. The installation of station systems, including CCTV and VMS screens are also nearing completion and will be seamlessly integrated into the main information and control environment. Hardware installation in buses is in progress by the suppliers and will be completed in time. However, it is doubtful that the entire control system will be ready for the commencement of starter services on 30 August 2009. Initial service design includes mitigation for this eventuality. A final report on the AFC tender is being completed and should be ready for adjudication by the end of July 2009. A paper ticket system is being designed to mitigate the fact that the automatic fare collection system will only be completed about November/December 2009 Bus purchase Buses have been procured by the City. 75 buses have been delivered to the city and the remainder will be delivered by end of July. Homologation and all required tests and rectifications have been completed. Insurance cover has been arranged and licensing will be postponed to achieve maximum savings on expenditure

208 209 Work stream Readiness Bus operating A special purpose vehicle has been registered; trustees are being appointed. This SPV will company and be contracted so that the starter services begin on 30 August 2009, pending the successful SPV completion of negotiations and sign-on by the taxi industry. Negotiations on a bus operating company owned by the taxi industry have not yet started (see below) Negotiations with Affected phase 1A operators and associations have been formally requested to come taxi industry forward to verify the numbers of affected vehicles and to nominate representatives to the negotiating table. An independent facilitator and chairperson have been appointed. Both sides are finalising their negotiation positions Station Some initial agreement has been reached with the MTC but significant work and funding management are still required for stations to operate effectively. No progress has yet been made to secure advertising revenue. Difficult to get stations fully operational without negotiations with taxi industry being completed to determine their possible participation in the value chain Depots Dobsonville Temporary Depot under construction. Dobsonville and City permanent Depots in design/EIA approval/land acquisition phase The Project Team is considering sourcing additional parking space that would absorb the growth of the service up to the completion of the permanent Dobsonville and CBD depots required for the full phase 1A Safety and Operational plan with JMPD still to be finalised and approved by Mayoral Committee security Funding R40m requested from the CoJ budget was not provided due to fiscal constraints. Another budget is being drawn up including costs of delays, transitional and transformation costs and the costs of providing a 2010 event service. The total of this budget (including the R40m shortfall) could reach more than R100m. Engagement with National Treasury and the National Department of Transport for this further funding requested by the Mayoral Committee has begun Institution Very limited numbers of staff permanently employed. Process is now beginning to finalise building organogram and recruit staff. Some positions will be fast-tracked and in other instances contract workers or contracted companies will be used. A process to source suitably licensed and qualified taxi drivers has commenced and will be augmented by a properly structured training course. The successful drivers will be employed by the SPV company Risk management Ongoing risk assessment is conducted while Grant Thornton continues to offer probity advice. Key operational risks are: Inadequate capacitation of the BRT unit resulting in inability to effectively operate Phase 1A on launch Inadequate OPEX budget Potential failure to obtain valid operating licenses prior to service launch Potential failure to implement sufficient ITS systems in time to launch Phase 1A as a result of delays in the procurement and roll out of ITS components impacting on operational effectiveness Threat to safety and security of infrastructure, stations and routes Potential failure to reach agreement with the taxi industry on the SPV strategy to start the service on 30 August 2009 Potential failure to have temporary depots ready in time for launch of phase 1A

The roll out of Phase 1B will look at lessons learnt in the implementation of Phase 1A. The City intends to downscale Phase 1B and it will conduct an assessment and refinement process scheduled to be completed by December 2009 for this Phase.

210 211 Marketing To ensure that the 2010 FIFA World Cup is the extravaganza of soccer it is intended to be, the City is currently rolling out an aggressive marketing strategy. The strategy is guided by the vision of providing, informing and entertaining fans from arrival through to accommodation, recreation and to the matches. These fans, having had a wonderful experience of the City, are then to become ambassadors for the CoJ across the globe. The components of the strategy include the development of fan fest sites, public viewing areas, accommodation and tourism as well as the beautification of the City. A discussion of two of these components is detailed below:

Accommodation and Tourism

The scale of the 2010 FIFA World Cup is unparalleled by any other event that the City has hosted. Approximately 500 000 people will move through the City and require quality accommodation. To this end 19 new hotels are being built in the City and surrounding areas to meet the needs of the many fans expected in June 2010. MATCH Services, based in Zurich, Switzerland, is the professional services company selected by FIFA to provide ticketing, accommodation and event information technology services to FIFA for the FIFA Confederations Cup 2009, 2010 FIFA World Cup, 2013 FIFA Confederations Cup and the 2014 FIFA World Cup.

MATCH is partnering with local hotels, lodges, guest houses and BandB establishments to accredit accommodation. The long-term benefit of this is that it will provide a reliable grading of accommodation. In an attempt to develop and nurture the South African hospitality industry MATCH held a workshop for SMMEs that wish to be accredited for 2010 FIFA World Cup.

Alternative accommodation is being planned at universities and student residences in the City. The CoJ is also engaging an external company to plan and develop a tent city within the city to avoid having fans sleeping on the streets, in parks and railway stations as was the case in Germany. The CoJ is investigating the possibilities of developing and facilitating the support of a homestay.

Stakeholder Mobilisation and Volunteer programme The City’s stakeholder mobilisation and community engagement process for the 2010 FIFA World Cup began in earnest in February 2008. It has been divided into three phases with the joint purpose of informing citizens and creating awareness on the FIFA Confederations Cup 2009 and the 2010 FIFA World Cup, as well as the opportunities these events present for Johannesburg citizens.

Lessons that emerged from this cluster were that there is a need to clarify the involvement and roles of Councillors and the City’s employees during the 2010 FIFA World Cup. Also, volunteer programme and community awareness should be intensified through various mechanisms such as Fly the Flag campaign throughout the City.

Parallel events

Football for Hope

Built on the theme, Development through Football, this football festival will take place in Alexandra at No.3 Square which has a multi-purpose sports complex, club house, soccer field and a range of other playing areas. The football festival will kick off with a pre-festival from 25 June to 2 July with the main tournament staged from 3 to 10 July.

Boys in the Photograph

This is another cultural event that will be staged during the 2010 FIFA World Cup and is an Andrew Lloyd Webber musical that will be performed at the Joburg Theatre. The musical will be produced by the Johannesburg Theatre in association with Real Theatre and will open on 30 May 2010 and run to 8 August 2010.

210 211 Artists of Africa

This exhibition will showcase the art and craft of Africa during the 2010 FIFA World Cup and will be located at Museum Africa in Newtown.

Mayoral Legacy projects Seven legacy projects will ensure that ordinary Johannesburg residents continue to benefit from 2010 long after the event is over. These include street furniture in the Inner City, greening of underdeveloped soccer fields, an indoor sports centre, upgrading of Diepkloof Hostel, Greening of the Klipspruit River, development of the Soweto Theatre, and BRT. Progress with regard to these initiatives is detailed below:

Greening of soccer fields

• 52 of 101 fields were found to be suitable for greening;

• 18 fields were completed (between 2006 and 2008);

• 2008/09: 10 fields developed – grassed, irrigation systems installed, landscaped and fenced; and

• In the 2009/10 year, a further 11 fields will be completed.

Indoor sports hall

• This is located on the rugby fields in Orlando East and links to the Orlando Stadium and the Orlando multi- purpose courts; and

• It will also house an Olympic-standard swimming pool

Soweto Theatre

• The development of the Soweto Theatre was put out to tender and a successful bidder appointed in December 2008; and

• Sod-turning ceremony by Executive Mayor on 10 February 2009.

Street Furniture

The impact of this project is already being felt across the city. Some of the initiatives already tackled include:

• Benches, lighting and multi-purpose bins in Hillbrow, Berea and Yeoville;

• Mosaics on the Nugget Street waterfall and paving art in Hillbrow, Yeoville and Berea;

• Public art in the five parks in Hillbrow, Yeoville and Berea;

• New lighting in the Transport Square in Doornfontein;

• Mosaic artwork at the Bara Taxi Rank; and

• Paving and street lighting in Nasrec.

Klipspruit River Rehabilitation

• This river runs through Soweto and forms part of the greenbelt necklace that encircles this area; and

• The river will provide a series of ecoparks, trails and picnic sites equipped with ablution facilities, irrigation systems, water features, play equipment, bird hides and board walks

212 CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY GROUP ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 General Information

MAYORAL COMMITTEE

EXECUTIVE MAYOR Amos Masondo (Chairperson) (1 JULY 2008 – 30 JUNE 2011)

COUNCILLORS (1 JULY 2008 – 30 JUNE 2011) Bafana Sithole (Community Development) Parks Tau (Finance) Bhengeza Mthombeni (Health) Matshidiso Mfikoe (Environment and Corporate Services) Oupa Monareng (Economic Development) Elgina Ndhlovu (Public Safety) Ruby Mathang (Housing) Christine Walters (Infrastructure and Services) Rosslyn Greeff (Development Planning and Urban Management) Rehana Moosajee (Transport ) Nonceba Molwele (Chief Whip) Nkele Ntingane (Speaker of Council)

GRADING OF LOCAL AUTHORITY The City of Johannesburg Metropolitan Municipality is a Grade Six Local Authority in terms of Item IV of Government Notice R999 of 2 October 2001, published in terms of the Remuneration of Public Office Bearers Act, 1998.

AUDITORS The Office of the Auditor-General: Gauteng Registered Auditors 61 Central Street P O Box 91081 Houghton Auckland Park 2198 2006

BANKERS ABSA Bank Limited

CITY MANAGER Mavela AV Dlamini

EXECUTIVE DIRECTOR: Mankodi Moitse FINANCE

REGISTERED OFFICE Metropolitan Centre, Loveday Street, Johannesburg 2001

Telephone: +27 (0)11 407-6111 Facsimile: +27 (0)11 339-5704

POSTAL ADDRESS P O Box 1049 Johannesburg 2000

214 215 1 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Index

The reports and statements set out below comprise the Group Annual Financial Statements:

INDEX PAGE

Municipal Manager's approval of the Group Annual Financial Statements 4

Report of the Auditor General 5 - 10

Report of the Executive Director : Finance 11 - 31

Statement of Financial Position 32 - 33

Statement of Financial Performance 34

Statement of Changes in Net Assets 35 - 36

Cash Flow Statement 37

Accounting Policies 38 - 53

Notes to the Group Annual Financial Statements 54 - 141

APPENDIX A: Schedule of External Loans 142 - 143

APPENDIX B: Analysis of Property, Plant and Equipment 144

APPENDIX C: Segmental Analysis of Property, Plant and Equipment 145

APPENDIX D: Segmental Statement of Financial Performance 146

APPENDIX E(1): Actual versus Budget (Revenue and Expenditure) 147

APPENDIX E(2): Actual versus Budget (Acquisition of Property, Plant and Equipment) 148

APPENDIX F: Disclosure of Grants and Subsidies in Terms of the Municipal Finance 149 - 150 Management Act

APPENDIX G: Bank accounts 151

APPENDIX H: Directors remuneration 152

214 215 2 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 INDEX

ABBREVIATIONS

CJMM City of Johannesburg Metropolitan Municipality

COID Compensation for Occupational Injuries and Diseases

CRR Capital Replacement Reserve

DBSA Development Bank of South Africa

GAAP Generally Accepted Accounting Practices

GEPF Government Employees Pension Fund

GRAP Generally Recognised Accounting Practice

IAS International Accounting Standards

IMFO Institute of Municipal Finance Officers

IPSAS International Public Sector Accounting Standards

MEs Municipal Entities

MEC Member of the Executive Council

MFMA Municipal Finance Management Act

MIG Municipal Infrastructure Grant (previously CMIP)

NDR Non-Distributable Reserve

216 217 3 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Municipal Manager's approval of annual financial statements

I am responsible for the preparation of the Group Annual Financial Statements for the CJMM, which are set out on pages 4 to 148, in terms of Section 126(1) of the Municipal Finance Management Act and which I have signed on behalf of the Municipality.

I certify that the salaries, allowances and benefits of Councillors as disclosed in note 36 of these group annual financial statements are within the upper limits of the framework envisaged in Section 219 of the Constitution, read with the Remuneration of Public Office Bearers Act.

Municipal Manager

30 September 2009

216 217

4 218 219 218 219 220 221 220 221 222 223 222 223 CFO’s report for the year ended CFO’s Report 30 June 2009

A. Introduction

It gives me pleasure to present to you the Annual Financial Statements for the City of Johannesburg for the year ended 30 June 2009. These consolidated Annual Financial Statements of the Municipality incorporate the results and operations of the 16 Municipal Owned Entities (MOE’s). Detailed comments on the results of these MOE’s are also included in this report.

The year ended 30 June 2009 was in a number of ways challenging for the City of Johannesburg. As a result of the global economic crisis the City was faced with rising interest rates, rising inflation and rising cost of commodities such as fuel. Society’s needs have continued to place increasing demands on the available resources. Nevertheless, the City has remained committed to providing world class service delivery to its citizens.

I would like to express my gratitude to the City’s Executive Mayor, Members of Mayoral Committee responsible for finance, Mayoral Committee, the group audit committee, Municipal Manager, Councillors, Executive Directors, Boards of Directors, Managing Directors, CFO’s of Municipal Owned Entities and Directors for the support they have provided during the 2008/2009 financial year.

The thousands of individuals who work as staff for the City also merit special mention for their contribution to the success of the City in achieving its mandate. These individuals, through their long hours and high degree of professionalism, provide a margin of excellence. Their dedication has been vividly displayed in the citywide dedication of obtaining an unqualified audit report. This is but an example of the selflessness exhibited across the City on a regular basis. The City benefits enormously, and we are grateful.

B. Overview

Once again the City of Johannesburg has strived to prepare the Annual Financial Statements in full compliance with the provisions of the Generally Recognized Accounting Practice (GRAP), Generally Accepted Municipal Accounting Practice (GAMAP) and South African Generally Accepted Accounting Practice (SA GAAP). This makes it easier to compare the current year financial statements against those of the prior years as well as against those of other Municipalities whose reports have been prepared on the same basis.

THE PAST TEN YEARS PROJECTION FOR External Factors 2008/09 FY Anticipated economic 2010 World Cup slow down

Lower growth in Inflation rate (6.2%) Government grants Long-term

Development Internal Factors

Increase in Restructuring tariffs Government Review of Opex Internal ((Free basic water, step tariffs) grants Factors

Short-term

Financial Position Financial High Low Capex Threat to Gearing Economic spend due to anticipated Growth Higher Capex

Sale of debtors’ book Focus on Longer-term debtors

Implementation of MPRA Higher spending (revenue neutral) on Capex Borrowing Igoli 2002 Restructuring

Contained Expenditure Time 4 11 224 225 CFO’s report for the year ended 30 June 2009

Over the 10 year period from 1997 to 2007, the City of Johannesburg enjoyed a season of improving financial performance characterized by: • Increased revenue inflows including government grants • Increasing surpluses • High economic growth in the City and its periphery which supported increased development However as a result of numerous activities influenced by both internal and external factors, the 2008/09 financial year has been a challenging year and can be summarized as follows • Uncertainties in the revenue projections ¾ Implementation of the Municipal Property Rates Act (MPRA). Although a revenue neutral position was taken, the implementation process presented further challenges. ¾ Introduction of step tariffs. ¾ Electricity Crisis – Nersa approved additional Eskom tariff two months later into the financial year.

• Decline in grant funding subsequent to introduction of fuel levy as a replacement of RSC levies. • Economic landscape, including resultant impact on debtors book restructuring process ¾ Rising inflation and interest rates ¾ The tariffs and budgets were based on the CPIX of 6.2% and the latest trend on CPIX projects an average of 10.3% for the 2008/09 financial year. A decision was taken to absorb the increases within the budget • Economic slowdown ¾ Low growth ¾ Impact on collection levels due to higher levels of liquidation and unemployement. • Total exposure on key capital projects

12

224 225 CFO’s report for the year ended 30 June 2009

Key Financial Statistics

The key financial statistics of the City are set out below.

Financial Ratio 2004 2005 2006 2007 2008 2009

Growth in total revenue (%) 21% 19% 11% 7% 13% 15%

Growth in rates and service charges (%) 10% 10% 8% 9% 7% 17%

Growth in expenditure (%) 13% 9% 13% 8% 17% 25%

Annual surpluses generated (Rm) 246 1,458 1,673 782 1,998 726

Growth in gross consumer debtors (%) 23% ‐ 1% 3% 2% ‐11%

Growth in net consumer debtors (%) 9% 23% 7% ‐5% 14% 5%

Net debtors’ days outstanding 61 69 68 68 60 62

Capital expenditure (Rm) 1,148 1,860 2,663 3,309 5,343 6,356

Capital expenditure to revenue (%) 10% 14% 18% 20% 30% 31%

Borrowings to revenue (%) 44% 39% 40% 38% 46% 54%

Cash/investment balances (Rm) 2,321 3,044 3,349 3,788 3,784 3,513

13

226 227 CFO’s report for the year ended 30 June 2009

C.1 Statement of Financial Performance

2009 2009 2009 2008 Budget Growth %Of Total

Actual Budget Revised Budget Actual Variance Variance 2009 2008 R'000 R'000 R'000 R'000 % % INCOME Property rates 3,330,999 3,890,315 3,946,315 3,326,163 ‐16% 0% 16% 19% Service Charges 9,852,446 9,554,475 10,106,234 7,989,804 ‐3% 23% 48% 44% Grants and subsidies 4,943,421 5,531,620 6,684,633 4,445,795 ‐26% 11% 24% 25% Interest earned 806,141 357,690 327,977 727,776 146% 11% 4% 4% Other 1,791,259 5,141,418 5,217,370 1,470,274 ‐66% 22% 9% 8% 20,724,266 24,475,518 26,282,529 17,959,812 ‐21% 15% 100% 100%

EXPENDITURE Employee related costs 5,269,672 5,181,944 5,123,373 4,318,763 3% 22% 26% 27% Impairment of current receivables 1,478,271 940,675 1,038,376 738,800 42% 100% 7% 5% Depreciation 733,608 1,258,154 1,112,986 806,402 ‐34% ‐9% 4% 5% Repairs and maintenance 422,947 332,711 462,683 399,474 ‐9% 6% 2% 2% Interest on external borrowings 1,249,801 1,043,060 1,130,830 971,161 11% 29% 6% 6% Bulk purchases 5,428,750 4,808,134 5,443,423 4,324,318 0% 26% 27% 27% Contracted services 1,931,110 2,160,721 2,429,808 1,605,081 ‐21% 20% 10% 10% Other 3,468,901 6,558,978 6,350,781 2,841,269 ‐45% 22% 17% 18% 19,983,060 22,284,377 23,092,260 16,005,268 ‐13% 25% 100% 100%

SURPLUS / (DEFICIT) before fair value adjustment 741,206 2,191,141 3,190,269 1,954,544

Share of deficit of associate accounted for under the equity method ‐402 0 0 ‐221

SURPLUS / (DEFICIT) before taxation 740,804 2,191,141 3,190,269 1,954,323

Taxation 14,747 49,131 47,736 ‐43,302

NET SURPLUS / (DEFICIT) after taxation 726,057 2,142,010 3,142,533 1,997,625

14

226 227 CFO’s report for the year ended 30 June 2009

C.1.1 Revenue Revenue has grown by 15% due to increases in:‐ • Service charges (23%). Service charges increased mainly due to pass through costs for bulk purchases from Eskom and Rand Water • Grants and Subsidies (11%). Grants and subsidies growth declined compared to prior year due to introduction of fuel levy which changed the allocation structure.

The Municipal Property Rates Act (MPRA) was implemented in the current year with a view to remain revenue neutral. Property Rates are under budget by R423 million as a result of property value changes during the valuation objection process as well as the introduction of various rebates. As a result there has not been a growth in property rates from prior year.

C.1.1.1 Revenue % composition

C.1.1.2 Breakdown of Service Charges

2009 2008 Actual Actual R'000 % R'000 % Service Charges comprise Sale of electricity 5,491,207 56% 4,133,027 52% Sale of water 2,253,715 23% 2,112,070 26% Refuse removal 1,333,574 14% 1,205,207 15% Sewerage and sanitation charges 685,792 7% 437,312 5% Other services 88,158 1% 102,188 1% 9,852,446 100% 7,989,804 100%

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228 229 CFO’s report for the year ended 30 June 2009

C.1.1.3 Growth in Revenue (5 Years)

C.1.2 Expenditure

Over the past 3 financial years there has been a general upward trend in operating expenditure with a sharp increase in 2008/09 (25% increase).

The 22% increase in staff costs in 2009 is partly due to over expenditure as a result of the collective bargaining agreement on salary adjustments (JMPD) and the appointment of more staff than provided for in the budget by the EMS.

Bad debts have increased by 100% from prior year mainly due to the effect of the economic down turn on customers resulting in higher levels of non‐payment and therefore increased provision.

The 29% increase in interest on external borrowing is due to the City borrowing more in the current year as compared to the previous year. External borrowings for 2008/09 amounted to R2.6billion compared to R1.8billion in 2007/08. The City also incurred higher borrowing costs as a result of obtaining bridging finance during the year as the City was targeting to complete major flagship projects. Interest rates were also generally higher due to the state of the economic environment.

The increase in bulk purchases is in line with the increase in service charges and is a pass through cost.

The 20% increase in contracted services is mainly due to fleet service charges for the centralized fleet contract.

16

228 229 CFO’s report for the year ended 30 June 2009

C.1.2.1 Expenditure % Composition

C.1.2.2 Growth in Expenditure (5 Years)

17

230 231 CFO’s report for the year ended 30 June 2009

C.2 Statement of Financial Position

2009 2008 Growth Notes R'000 R'000 %

Net Assets and Liabilities Net Assets 19,479,093 17,015,653 14% 1 Non‐current liabilities 11,725,030 9,574,821 22% 2 Current liabilities 8,688,173 7,093,733 22% 3 39,892,296 33,684,207 18%

Assets Non‐current assets 34,151,687 27,983,489 22% 4 Current assets 5,740,609 5,700,718 1% 5 39,892,296 33,684,207 18% Notes 1. The growth in the net assets is mainly due to the increase accumulated surplus. 2. Total external borrowing for the year amounted to R2.6billion. 3. Major increases are from the current portion of long‐term liabilities due to the COJ bond of R1billion that is due for redemption in April 2010. However, there’s also a major decrease of 48% in current provisions due to the settlement of R 400m made on the Pension Fund. 4. The growth in Non–current assets is mainly from the increase in Property, Plant and Equipment as the City’s major capital projects (some 2010 World Cup related) come to completion. 5. The increase in current assets is due to the transfer of the current portion of the sinking fund to current assets in anticipation of the redemption of COJ01 bond maturing in April 2010.

C.3 Financial Ratios

The City would like to reiterate that the key financial indicators used to measure its financial performance were anticipated to be stretched in the current year in light of flagship projects that were due for completion. This information has previously been communicated to all stakeholders. However the situation was further exacerbated by the global recession which added further pressure to the key indicators. ` GROUP CJMM 2009 2008 2009 2008 R'000 R'000 R'000 R'000

Employee related Cost to Operating expenditure 26.37% 26.98% 27.36% 25.91% Personnel costs 5,269,672 4,318,763 2,930,442 2,279,226 Operating expenditure 19,983,060 16,005,268 10,711,397 8,797,475

The ratio remains within the acceptable ratio of 30%

18

230 231 CFO’s report for the year ended 30 June 2009

GROUP CJMM 2009 2008 2009 2008 R'000 R'000 R'000 R'000 Solvency ratio 1.95 2.02 1.77 1.80

TOTAL ASSETS Non‐current assets 34,151,687 27,983,489 28,568,588 23,920,731 Current assets 5,740,609 5,700,718 4,411,817 4,260,211 Total 39,892,296 33,684,207 32,980,405 28,180,942

TOTAL LIABILITIES Non‐current liabilities 11,725,030 9,574,821 11,058,081 9,008,877 Current liabilities 8,688,173 7,093,733 7,529,079 6,605,449 Total 20,413,203 16,668,554 18,587,160 15,614,326

The Ratio is within the benchmark of 2:1 and there is thus no immediate threat to the City’s solvency.

GROUP CJMM 2009 2008 2009 2008 R'000 R'000 R'000 R'000

Interest bearing debt to revenue (%) 54% 46% 101% 78% Non Current interest bearing debt 9,124,096 7,290,693 9,025,321 7,170,231 Current interest bearing debt 1,230,910 618,349 1,175,315 551,305 Total Interest bearing debt 10,355,006 7,909,042 10,200,636 7,721,536 Total Revenue (adjusted for bad debts) 19,245,995 17,221,012 10,103,690 9,914,944

The ratio is above the threshold of 50% as result of the efforts by the City in the current year to complete major capital projects in time for the World Cup. This resulted in the City’s borrowing levels being higher. There are however plans to correct this ratio in the medium term budget framework.

GROUP CJMM 2009 2008 2009 2008 R'000 R'000 R'000 R'000 Proportion of Income from Government Grants to Total Revenue 24% 25% 43% 41% Government Grants 4,943,421 4,445,795 4,592,746 4,129,948 Total Revenue 20,724,266 17,959,812 10,800,981 10,100,593

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232 233 CFO’s report for the year ended 30 June 2009

GROUP CJMM 2009 2008 2009 2008 R'000 R'000 R'000 R'000 Proportion of Equity backed by Cash & Investments 18% 22% 27% 33% Cash & Investments 3,512,621 3,783,657 3,900,832 4,198,122 Equity (Community Wealth) 19,479,093 17,015,653 14,393,245 12,566,616

This ratio indicates a decline in the City’s liquidity levels which are being addressed in the City’s Financial Strategy.

GROUP CJMM 2009 2008 2009 2008 R'000 R'000 R'000 R'000

Days debtors outstanding 60 62 44 48 Opening consumer debtors 2,152,956 1,742,712 538,383 468,508 Closing consumer debtors 2,263,950 2,152,956 436,645 538,383

Average consumer debtors 2,208,453 1,947,834 487,514 503,446 Property Rates 3,330,999 3,326,163 3,330,999 3,326,163 Service charges 9,852,446 7,989,804 579,607 404,189

Interest earned ‐ outstanding debtors 160,924 100,034 160,924 100,034 Total Consumer Revenue 13,344,369 11,416,001 4,071,530 3,830,386

There has been positive improvement in this ratio of 2 days due to credit control measures.

GROUP CJMM 2009 2008 2009 2008 R'000 R'000 R'000 R'000

Current ratio 0.66 0.80 0.59 0.64 Current assets 5,740,609 5,700,718 4,411,817 4,260,211 Current liabilities 8,688,173 7,093,733 7,529,079 6,605,449

The City anticipates correcting the ratio to 1:1 over a three (3) year period through proposed cash injections as included in the financial strategy.

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232 233 CFO’s report for the year ended 30 June 2009

C.4 Capital Expenditure Budget

The Capital Expenditure spent for the 2008/09 financial year was 91% of which the major areas of expenditure are illustrated below.

Major Areas of Expenditure

R 3,000,000.00

R 2,500,000.00 R 2,000,000.00 City Power

R 1,500,000.00 Jhb Water

Budget R 1,000,000.00 Transportation R 500,000.00

R ‐ 2010 Projects

0 l 1 a 008 0 Tot C.5 Review of CJMM operating/2 results/20009 8 09/2 0 2007 20 20 Financial Year

21

234 235 CFO’s report for the year ended 30 June 2009

C.5.1 CJMM

2009 2009 2009 2008 BUDGET BUDGET ORIGINAL REVISED ACTUAL BUDGET BUDGET ACTUAL VARIANCE VARIANCE R'000 R'000 R'000 R'000 R'000 % Description

Income 10,800,981 12,155,572 13,238,694 10,100,593 (2,437,713) ‐18%

Expenditure 10,711,397 10,582,440 10,508,531 8,797,475 202,866 2%

Surplus 89,584 1,573,132 2,730,163 1,303,118 (2,640,579) ‐97%

2009 2009 2009 2008 BUDGET BUDGET REVISED ACTUAL BUDGET BUDGET ACTUAL VARIANCE VARIANCE

R'000 R'000 R'000 R'000 R'000 %

Description Government grants and subsidies 4,592,746 5,531,620 6,684,633 4,129,948 (2,091,887) ‐31% Interest earned 672,050 322,334 283,634 606,807 388,416 137% Other income 5,536,185 6,301,618 6,270,427 5,363,838 (734,242) ‐12% Income 10,800,981 12,155,572 13,238,694 10,100,593 (2,437,713) ‐18%

Depreciation 322,073 696,010 647,249 433,617 (325,176) ‐50% Grants and subsidies paid 2,543,506 406,045 415,255 2,097,594 2,128,251 513% Impairment of current receivables 697,291 367,004 356,447 185,649 340,844 96% Interest paid 1,121,767 1,008,264 1,086,869 882,576 34,898 3% Other expenses 6,026,760 8,105,117 8,002,711 5,198,039 (1,975,951) ‐25% Expenditure 10,711,397 10,582,440 10,508,531 8,797,475 202,866 2%

C.5.2 MOES

MOE’s – aggregated profit/surplus and (loss)/(deficit) before tax

2009 2009 2009 2008

Description Actual Budget Variance Actual Restated R000 R000 R000 R000 Aggregate profit /Surplus 456,402 460,106 (3,704) 442,959 Aggregate loss/deficit (113,610) ‐ (113,610) (65,327) Net result 342,792 460,106 (117,314) 377,632

22

234 235 CFO’s report for the year ended 30 June 2009

Comments

The aggregate surplus for the 2008/09 financial year decreased by 10,95%, from R383 million to R341 million. This was mainly attributable to the following entities either not achieving surplus targets or budgeted expenditure exceeding the budgeted income:

ƒ Pikitup: Actual surplus below target by R61 million. ƒ Johannesburg Roads Agency: Total budgeted expenditure exceeded budgeted income by R76,55 million. ƒ Metrobus: Total budgeted expenditure exceeded budgeted income by R19 million.

City Power and Johannesburg Fresh Produce Market exceeded their surplus targets by R20,4 million and R20,095 million respectively. City Power’s excess surplus was mainly attributable to costs savings on operational budget by R54 million, however they were below their targeted income by R34 million.

Total income for the municipal owned entities increased by 21% compared to the 2007/08 financial year and a corresponding increase in total expenditure by 22%.

City Power accounted for more than 68% of the increase in total revenue for the 2008/09 financial year, compared to 2007/08 financial year.

An increasing number of companies are exceeding their budgeted operational expenditure resulting in a decrease in the aggregate surplus to be achieved on a City wide basis.

City Power Johannesburg

2009 2009 2009 2008

Description Actual Budget Variance Actual Restated R000 R000 R000 R000 Income 5,997,201 6,031,305 (34,104) 4,426,186 Expenditure 5,782,835 5,837,363 (54,528) 4,474,696 Profit/(loss) before taxation 214,366 193,942 20,424 (48,510)

Comments:

The company’s revenue targets were not met due to declining electricity volume consumptions emanating from the drive to conserve energy. The cost of bulk electricity purchases was lower due to less volume being sold. Total savings on expenditure consisted mainly of bulk purchases, impairment of debts and depreciation costs.

23

236 237 CFO’s report for the year ended 30 June 2009

Pikitup Johannesburg

2009 2009 2009 2008

Description Actual Budget Variance Actual Restated R000 R000 R000 R000 Income 1,084,808 1,097,256 (12,448) 904,806 Expenditure 1,074,202 1,025,566 48,636 858,476 Profit/(loss) before taxation 10,606 71,690 61,084 46,330

Comments

A significant portion of the revenue was from the City’s subsidy, which was in line with the budgeted amount. Commercial revenue for the year was below the target and mainly on revenue from bulk services, business dailies. Operational expenditure was above budget mainly on the contracted services due to number of areas to be serviced.

Johannesburg Water

2009 2009 2009 2008

Description Actual Budget Variance Actual Restated R000 R000 R000 R000 Income 3,968,347 3,923,241 45,106 3,699,906 Expenditure 3,805,778 3,759,838 45,940 3,363,629 Profit/(loss) before taxation 162,569 163,403 (834) 336,277

Comments

Service revenue was above the budget, due to an increase in consumption. Other revenue was also above budget mainly as a result of additional release in deferred income. The total operating expenditure including bulk purchases exceeded budget and the low collection levels resulted in above budget increases to the impairment of debtor’s provision.

Johannesburg Road Agency

2009 2009 2009 2008

Description Actual Budget Variance Actual Restated R000 R000 R000 R000 Income 491,682 491,850 (168) 456,920 Expenditure 567,061 491,850 75,211 428,620 Profit/(loss) before taxation (75,379) ‐ (75,379) 28,300

24

236 237 CFO’s report for the year ended 30 June 2009

Comments

The over expenditure was due to contracted services in the revitalization programme and adjustments to resurfacing programmes. JRA made use of additional contractors due to lack of capacity. Consultancy costs were more than budgeted for because of payments made for Geographic tools. Repairs and maintenance costs were also high due to the deteriorating state of road conditions

Johannesburg City Parks

2009 2009 2009 2008

Description Actual Budget Variance Actual Restated R000 R000 R000 R000 Income 515,202 483,467 31,735 452,785

Expenditure 512,541 483,467 29,074 456,174

Profit/(loss) before taxation 2,661 ‐ 2,661 (3,389)

Comments

Revenue exceeded the budgeted revenue as a result of cemetery bookings, which increased by 11% and also external services from work orders received from the City and City Power, contributed to the revenue exceeding budget.

Operational expenditure increased due to additional work orders received from the City and City Power. Other operational expenditure was due to increases in transport related costs due to increased work coverage.

Johannesburg Metropolitan Bus Services

2009 2009 2009 2008

Description Actual Budget Variance Actual Restated R000 R000 R000 R000 Income 376,661 402,142 (25,481) 373,401 Expenditure 395,841 402,142 (6,301) 382,822 Profit/(loss) before taxation (19,180) ‐ (19,180) (9,421)

Comments

Revenue was below target due to the employee bus strike that lasted for a month and pilferage of cash that is not yet quantified. The planned adjusted prices were not implemented.

25

238 239 CFO’s report for the year ended 30 June 2009

Johannesburg Fresh Produce Market

2009 2009 2009 2008

Description Actual Budget Variance Actual Restated R000 R000 R000 R000 Income 202,906 185,528 17,378 174,531 Expenditure 168,327 171,044 (2,717) 154,449 Profit/(loss) before taxation 34,579 14,484 20,095 20,082

Comments

The increased activity at the Market increased revenue more than the revenue that was budgeted. This is a result of higher than expected volumes and prices of fresh produce, and mainly on commission income earned. The implementation of the cost cutting measures resulted in the IT and Human Resource costs being less than budgeted.

Johannesburg Zoo

2009 2009 2009 2008

Description Actual Budget Variance Actual Restated R000 R000 R000 R000 Income 53,923 53,604 319 51,936 Expenditure 53,117 53,604 (487) 51,696 Profit/(loss) before taxation 806 ‐ 806 240

Comments

Revenue was marginally above budget and operational expenditure had a savings. The savings was due to cost cutting measures to ensure that the company is within its targeted surplus.

Johannesburg City Theatre

2009 2009 2009 2008

Description Actual Budget Variance Actual Restated R000 R000 R000 R000 Income 42,604 49,867 (7,263) 36,757 Expenditure 47,244 49,867 (2,623) 34,515 Profit/(loss) before taxation (4,640) ‐ (4,640) 2,242

26

238 239 CFO’s report for the year ended 30 June 2009

Comments

Revenue is lower than budget due to the economic downturn and this has led to a decrease in ticket sales. Marginal savings were realized in particular general expenses.

Johannesburg Property Company

2009 2009 2009 2008

Description Actual Budget Variance Actual Restated R000 R000 R000 R000 Income 67,381 59,168 8,213 36,770

Expenditure 50,864 59,168 (8,304) 38,577

Profit/(loss) before taxation 16,517 ‐ 16,517 (1,807)

Comments

Revenue was above targets due to higher commission received from the City on completion of Developments as per SLA. Operational expenditure savings realized on general expenses due to cost cutting measures implemented.

Johannesburg Development Agency

2009 2009 2009 2008

Description Actual Budget Variance Actual Restated R000 R000 R000 R000 Income 92,371 86,449 5,922 63,760 Expenditure 80,618 70,429 10,189 56,369 Profit/(loss) before taxation 11,753 16,020 (4,267) 7,391

Comments

The decrease in capital expenditure allocation result in less development management fees realized, and thus resulting in revenue being below budget. Operational expenditure was above the budget due to cost incurred on urban management projects.

Metropolitan Trading Company

2009 2009 2009 2008

Description Actual Budget Variance Actual Restated R000 R000 R000 R000 Income 57,917 62,471 (4,554) 53,628 Expenditure 59,119 62,471 (3,352) 54,253 Profit/(loss) before taxation (1,202) ‐ (1,202) (625)

27

240 241 CFO’s report for the year ended 30 June 2009

Comments

Revenue was below budgeted revenue mainly due to income from rental of space at the taxi ranks. The revenue was not recognized due to improbability of revenue being recovered. Savings were realized on general expenses due to cost cutting measures implemented.

Johannesburg Tourism Company

2009 2009 2009 2008

Description Actual Budget Variance Actual Restated R000 R000 R000 R000 Income 86,104 53,383 32,721 19,164 Expenditure 99,313 53,383 45,930 17,656 Profit/(loss) before taxation (13,209) ‐ (13,209) 1,508

Comments

The City gave the company an additional grant of R45 million for the staging of Miss World resulting in revenue exceeding the budget. The sponsorship fees also contributed to the budget being exceeded. Operational expenditure was above budget due to the staging of Miss World, foreign exchange differences and advertising exceeding the budget.

Johannesburg Social Housing Company

2009 2009 2009 2008

Description Actual Budget Variance Actual Restated R000 R000 R000 R000 Income 57,890 54,575 3,315 48,169 Expenditure 55,565 54,008 1,557 47,580 Profit/(loss) before taxation 2,325 567 1,758 589

Comments

Revenue was above budget due to additional income received from rental facilities and equipment. This additional income is due to an increase in rental facilities. Operational expenditure exceeded budget due to an increase in bad debts provision (Collection levels was below the target) as well as employee related costs.

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240 241 CFO’s report for the year ended 30 June 2009

Roodepoort City Theatre

2009 2009 2009 2008 Description Actual Budget Variance Actual Restated R000 R000 R000 R000 Income 9,599 9,529 70 7,693 Expenditure 9,379 9,529 (150) 9,268 Profit/(loss) before taxation 220 ‐ 220 (1,575)

Comments

Actual and budgeted income and expenditure were in line.

D. Salient Features

2010 World Cup Johannesburg is set to play a key role in the 2010 Soccer World Cup with some of the major events set to take place at Soccer City. The opening ceremony and match (11 June 2010), closing ceremony and final match (11 July 2010) as well as a quarter final match (2 July), one Round 2 match and four other first round matches, will take place at Soccer City.

The Soccer City upgrade as at 30 June 2009 was 85% complete, with various aspects at different stages e.g. roof construction ‐ 95%, brickwork ‐ 95%, internal finishes ‐ 70% and external earthworks ‐ 35%.

Ellis Park Stadium upgrade was completed in early 2009 and was used for the Confederations Cup. The opening ceremony and match and the closing ceremony and final match as well as three other matches were played at Ellis Park.

The Ellis Park precinct in the immediate vicinity of the Ellis Park Stadium was also completed in time for the Confederations Cup held in June 2009.

A successful Confederations Cup was held from the 14 June 2009 to 28 June 2009 and FIFA gave their approval for a well organized tournament.

The construction for the International Broadcast Centre at the Johannesburg Expo Centre began towards the end of the financial year and was set to be completed by November 2009.

The Orlando Stadium, an official training venue for the 2010 Soccer World Cup was officially opened in November 2008 and numerous soccer matches and events have taken place at the venue. FIFA Confederation Cup training sessions were also held at the stadium in June 2009 and Bafana Bafana played Poland at Orlando Stadium in an international match.

The Orlando, Dobsonville and Rand Stadium Precincts were also completed during the financial year, and these stadiums will be used as training grounds for the FIFA World Cup in 2010.

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242 243 CFO’s report for the year ended 30 June 2009

Implementation of the Municipal Property Rates Act

The City implemented Local Government Municipal Property Rates Act (MPRA), 6 of 2004, on 1st July 2008.

In line with the provisions of the MPRA, the City developed a Rates Policy in terms of which it provides that rates are levied according to the zoning, or rights in the land, as opposed to the previous practice of levying rates based on usage.

In terms of the Act, sectional title units are separately rated. This led to the creation of some hundred and eighty thousand new billing accounts. This process resulted in an additional challenge for the City regarding obtaining contact details for the owners of the sectional titles in order to be able to send bills on these newly created accounts. Significant progress has been made in the course of the year in obtaining these addresses. As at 30 September 2009 collection levels on sectional title units were up to 73%.

Upon successful application to the Council, rebates are allowed for the following: ¾ Senior Citizens, ¾ Indigents, ¾ PBO’s and NGO’s, ¾ Educational and sporting bodies, ¾ Owners of heritage sites.

Expenditure Review Process

In an attempt to identify ways to efficiently manage the City’s operating costs, an expenditure review exercise was done based on the general ledger entries for the 2008/09 financial year. This citywide process identified some areas for potential efficiency improvements.

Credit Ratings The City’s credit ratings as at 20 September 2009 (subsequent to the most recent update by the rating agencies) are as follows:

Agency Description Long‐term rating Short‐term rating Outlook

Fitch Issuer Rating AA‐ (zaf) F1+(zaf) Stable

Moody’s Issuer Rating Aa3.za Stable

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242 243 CFO’s report for the year ended 30 June 2009

Rationale: ¾ Moody’s downgraded COJ from Aa2.za to Aa3.za and outlook remains stable. ¾ Large and diversified economic base coupled with a broad tax base. ¾ Considered the business capital and main financial and economic centre of South Africa.

Stable outlook based on: ¾ Expectation that the municipality will maintain a prudent financial policy. ¾ Although the debt burden will increase, overall budgetary management is sound ¾ Credit challenges o Economic downturn adversely affected revenue collection. o Higher gearing relative to other municipalities due to accelerated Capital Expenditure. o Higher gearing pose a challenge in raising fund in debt capital markets. o 2010 Capex commitments that have to be fulfilled.

Financial Strategy In light of the challenges faced by the City in the 2008/09 financial year, an extensive exercise will be engaged in the 2009/10 financial year to address the challenges through the development of a citywide financial strategy. A task team comprising representatives from Finance Department as a well as the City Manager’s office will be instrumental in developing the strategy. The development of the strategy will be underpinned by the following principles:

¾ Rigorous analysis enables a strategy that responds to the key challenges that have been identified ¾ Demonstrate that the City is able to effectively collaborate internally and proactively address shortcomings that have been identified ¾ Put forward a financial strategy that inspires confidence amongst all stakeholders ¾ Ensure that the City is placed on the path of long term financial health and sustainability ¾ Financial strategy should be sensitive to the poor, ensure affordability to all classes of households and remain attractive to business ¾ Service delivery and development agenda of the City should fundamentally remain intact

______MANKODI MOITSE Group Chief Financial Officer City of Johannesburg Metropolitan Municipality

Johannesburg DATE

31

244 245 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Statement of Financial Position as at 30 June 2009 GROUP CJMM Figures in Rand thousand Note(s) 2009 2008 2009 2008

NET ASSETS AND LIABILITIES NET ASSETS Capital replacement reserve 85,186 104,162 85,186 104,162 Associated NDR 2,899 2,701 - - COID reserve 78,541 64,115 78,541 64,115 Accumulated surplus 19,312,466 16,844,674 14,229,517 12,398,338 19,479,092 17,015,652 14,393,244 12,566,615

LIABILITIES Non-Current Liabilities Long-term liabilities 3 9,124,096 7,290,693 9,025,321 7,170,231 Finance lease obligations 4 82,257 22,659 71,110 7,758 Retirement benefit obligations 6 1,789,504 1,640,420 1,736,977 1,628,553 Deferred tax liability 11 8,779 18,714 - - Non-current provisions 5 289,685 213,244 - - Deferred income 58 13,520 1,658 13,470 - Consumer deposits 12 417,189 387,433 211,203 202,335 11,725,030 9,574,821 11,058,081 9,008,877

Current Liabilities Current portion of long-term liabilities 3 1,230,910 618,349 1,175,315 551,305 Finance lease obligations 4 26,801 27,029 20,232 20,578 Current tax payable 47,306 18,880 - - Creditors 7 5,667,712 4,383,652 5,204,975 4,499,711 VAT payable 9 385,155 348,406 - - Unspent conditional grants and receipts 10 974,130 989,131 846,139 883,447 Current provisions 5 304,303 656,400 282,419 650,409 Bank overdraft 29 51,857 51,887 - - 8,688,174 7,093,734 7,529,080 6,605,450 Total Liabilities 20,413,204 16,668,555 18,587,161 15,614,327 Total Net Assets and Liabilities 39,892,296 33,684,207 32,980,405 28,180,942

244 245 32 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Statement of Financial Position as at 30 June 2009 GROUP CJMM Figures in Rand thousand Note(s) 2009 2008 2009 2008

ASSETS Non-Current Assets Biological assets 13 5,976 4,474 - - Investment property 14 1,251,570 1,197,938 1,052,889 1,055,610 Property, plant and equipment 15 30,508,231 24,597,915 19,850,725 15,460,907 Intangible assets 16 344,356 235,864 54,182 69,406 Investments in Municipal Entities 17 - - 467,713 473,676 Investment in joint ventures 19 31,326 15,991 - - Loans to Municipal Entities 18 - - 5,227,632 5,005,158 Held to maturity investments 21 1,783,830 1,800,008 1,783,830 1,800,008 Non-current receivables 23 131,617 55,966 131,617 55,966 Deferred tax asset 11 94,781 75,333 - - 34,151,687 27,983,489 28,568,588 23,920,731

Current Assets Biological assets - Held for resale 24 3,400 3,434 - - Inventories 25 171,397 115,094 29,130 31,648 Loans to Municipal Entities 18 - - 684,902 491,346 Held to maturity investments 21 1,000,000 577,312 1,000,000 577,312 Current tax receivable 3,991 5,626 - - Assets held for sale 30 2,378 2,390 - - Other debtors 26 1,415,147 1,245,802 1,439,995 1,086,032 Consumer debtors 27 2,263,950 2,152,956 436,645 538,383 VAT receivable 9 182,881 207,758 171,856 188,364 Call investment deposits 28 466,104 920,467 447,591 905,955 Bank balances and cash 29 231,361 469,879 201,698 441,171 5,740,609 5,700,718 4,411,817 4,260,211 Total Assets 39,892,296 33,684,207 32,980,405 28,180,942

246 247 33 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Detailed Income statement GROUP CJMM Figures in Rand thousand Note(s) 2009 2008 2009 2008

Revenue Property rates 31 3,330,999 3,326,163 3,330,999 3,326,163 Service charges 32 9,852,446 7,989,804 579,607 404,189 Rental facilities and equipment 113,543 117,557 57,018 50,264 Interest earned - investments 645,217 627,742 511,126 506,773 Interest earned - outstanding debtors 160,924 100,034 160,924 100,034 Interest received - MEs - - 704,029 669,071 Fines 389,265 371,919 389,265 371,919 Licences and permits 1,243 1,231 1,243 1,231 Income from agency services 155,463 147,465 155,463 147,465 Government grants and subsidies 33 4,943,421 4,445,795 4,592,746 4,129,948 Public contributions, donated and 90,370 58,643 803 552 contributed property, plant and equipment Other income 34 1,041,375 773,459 317,758 392,984 Total Revenue 20,724,266 17,959,812 10,800,981 10,100,593

Expenditure Employee related costs 35 (5,269,672) (4,318,763) (2,930,442) (2,279,226) Remuneration of councillors 36 (68,657) (62,337) (68,657) (62,337) Impairment of current receivables 37 (1,478,271) (738,800) (697,291) (185,649) Depreciation and amortisation 38 (733,608) (806,402) (322,073) (433,617) Repairs and maintenance (422,947) (399,474) (111,374) (90,783) Interest paid (1,249,801) (971,161) (1,121,767) (882,576) Bulk purchases 39 (5,428,750) (4,324,318) - - Contracted services 40 (1,931,110) (1,605,081) (1,113,206) (1,043,424) Grants and subsidies paid 41 (361,421) (196,294) (2,543,506) (2,097,594) General expenses 42 (2,975,842) (2,506,138) (1,781,104) (1,661,446) Impairments of assets 43 (31,469) (61,519) (15,838) (47,009) Loss on disposal of property, plant and (31,512) (14,982) (6,139) (13,815) equipment Total Expenditure (19,983,060) (16,005,269) (10,711,397) (8,797,476) Operating surplus 741,206 1,954,543 89,584 1,303,117 Share of deficit of associate accounted for (402) (221) - - under the equity method Surplus before taxation 740,804 1,954,322 89,584 1,303,117 Taxation 44 14,747 (43,302) - - Surplus for the year 726,057 1,997,624 89,584 1,303,117

246 247 34 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Statement of Changes in Net Assets Note(s) Capital Associated COID Total Accumulated Net Assets replacement NDR reserve reserves surplus Figures in Rand thousand reserve

GROUP Opening balance as previously reported 102,712 2,343 50,608 155,663 13,524,737 13,680,400 Adjustments Prior year adjustments 51 - 765,103 765,103 Balance at 01 July 2007 as restated 102,712 2,343 50,608 155,663 14,289,840 14,445,503 Changes in equity Capitalisation Adjustment - 21,383 21,383 Contribution to COID Reserve 26,284 26,284 (26,284) - COID claims processed (12,777) (12,777) 12,777 - Equity share in associate 358 358 358 Assets found - 53,329 53,329 Transfer to CRR 135,422 135,422 (135,422) - Net revenue (expenditure) recognised directly in 135,422 358 13,507 149,287 (74,217) 75,070 equity Surplus for the year - 1,997,624 1,997,624 Total recognised revenue and expenditure for 135,422 358 13,507 149,287 1,923,407 2,072,694 the year PPE purchases from CRR (133,972) (133,972) 133,972 - Assets under construction - 497,455 497,455 Total changes 1,450 358 13,507 15,315 2,554,834 2,570,149 Opening balance as previously reported 104,162 2,701 64,115 170,978 15,677,844 15,848,822 Adjustments Prior year adjustments 51 - 1,166,830 1,166,830 Balance at 01 July 2008 as restated 104,162 2,701 64,115 170,978 16,844,674 17,015,652 Changes in equity Contribution to COID Reserve 30,032 30,032 (30,032) - COID claims processed (15,606) (15,606) 15,606 - Transfer to CRR 11,171 11,171 (11,171) - Assets found - 438,486 438,486 Net revenue (expenditure) recognised directly in 11,171 - 14,426 25,597 412,889 438,486 equity Surplus for the year 726,057 726,057 Total recognised revenue and expenditure for 11,171 - 14,426 25,597 1,138,946 1,164,543 the year PPE purchases from CRR (30,147) (30,147) 30,147 - Equity share in associate 198 198 198 Assets under construction - 1,298,699 1,298,699 Total changes (18,976) 198 14,426 (4,352) 2,467,792 2,463,440 Balance at 30 June 2009 85,186 2,899 78,541 166,626 19,312,466 19,479,092

248 249 35 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Statement of Changes in Net Assets Note(s) Capital COID Total Accumulated Net Assets replacement reserve reserves surplus Figures in Rand thousand reserve

CJMM Opening balance as previously reported 102,712 50,608 153,320 10,155,390 10,308,710 Adjustments Prior year adjustments 51 - 382,621 382,621 Balance at 01 July 2007 as restated 102,712 50,608 153,320 10,538,011 10,691,331 Changes in net assets Capitalisation Adjustment - 21,383 21,383 Contribution to COID Reserve 26,284 26,284 (26,284) - COID claims processed (12,777) (12,777) 12,777 - Assets found - 53,329 53,329 Transfer to CRR 135,422 135,422 (135,422) - Net revenue (expenditure) recognised directly in equity 135,422 13,507 148,929 (74,217) 74,712 Surplus for the year - 1,303,117 1,303,117 Total recognised revenue and expenditure for the year 135,422 13,507 148,929 1,228,900 1,377,829 PPE purchases from CRR (133,972) (133,972) 133,972 - Assets under construction - 497,455 497,455 Total changes 1,450 13,507 14,957 1,860,327 1,875,284 Opening balance as previously reported 104,162 64,115 168,277 11,153,762 11,322,039 Adjustments Prior year adjustments 51 - 1,244,576 1,244,576 Balance at 01 July 2008 as restated 104,162 64,115 168,277 12,398,338 12,566,615 Changes in net assets Contribution to COID Reserve 30,032 30,032 (30,032) - COID claims processed (15,606) (15,606) 15,606 - Transfer to CRR 11,171 11,171 (11,171) - Assets found - 438,346 438,346 Net revenue (expenditure) recognised directly in equity 11,171 14,426 25,597 412,749 438,346 Surplus for the year 89,584 89,584 Total recognised revenue and expenditure for the year 11,171 14,426 25,597 502,333 527,930 PPE purchases from CRR (30,147) (30,147) 30,147 - Assets under construction - 1,298,699 1,298,699 Total changes (18,976) 14,426 (4,550) 1,831,179 1,826,629 Balance at 30 June 2009 85,186 78,541 163,727 14,229,517 14,393,244

248 249

36 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Cash Flow Statement GROUP CJMM Figures in Rand thousand Note(s) 2009 2008 2009 2008

CASH FLOWS FROM OPERATING ACTIVITIES

Cash receipts from ratepayers, government 19,302,583 16,474,868 10,800,981 10,100,593 and other Cash paid to suppliers and employees (14,839,644) (12,680,823) (8,766,586) (8,622,662) Cash generated from operations 45 4,462,939 3,794,045 2,034,395 1,477,931 Interest income - external investments 645,217 627,742 1,215,155 1,175,844 Interest paid (1,249,801) (971,161) (1,121,767) (882,576) Tax paid 46 (14,069) (4,481) - - Net cash from operating activities 3,844,286 3,446,145 2,127,783 1,771,199

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment 15 (6,259,414) (5,316,338) (4,255,500) (3,418,551) Proceeds on disposal of property, plant and 15 40,538 11,577 21,109 2,913 equipment Purchase of investment property 14 - (12,482) - - Purchase of other intangible assets 16 (96,456) (13,970) (9,019) (46) Purchase of held to maturity investments (382,677) (504,948) (347,788) (499,957) Proceeds of held to maturity investments 182,016 170,035 187,979 175,148 Increase in non-current receivables (75,651) (17,495) (476,347) (499,957) Decrease in call investment deposits 454,363 767,023 458,364 768,484 Net cash from investing activities (6,137,281) (4,916,598) (4,421,201) (3,301,349)

CASH FLOWS FROM FINANCING ACTIVITIES

Increase in long-term liabilities 2,720,554 2,126,865 2,701,000 2,126,865 Repayment of long-term liabilities (216,018) (170,646) (176,885) (127,340) Decrease of provisions (400,000) - (400,000) - Increase in Post retirement payments (139,155) (72,420) (142,046) (63,759) (Decrease) / increase in consumer deposits 29,756 (11,592) 8,868 (15,464) (Decrease) / increase finance lease 59,370 (45,253) 63,007 6,735 obligation Net cash from financing activities 2,054,507 1,826,954 2,053,944 1,927,037

Nett cash movement for the year (238,488) 356,501 (239,474) 396,887 Cash at the beginning of the year 417,992 61,490 441,172 44,283 Nett cash at end of the year 29 179,504 417,991 201,698 441,170

250 251 37 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Accounting Policies

1. Basis of preparation

The Group Annual Financial Statements have been prepared on an accrual basis of accounting and are in accordance with historical cost convention unless otherwise stated.

These Group Annual Financial Statements have been prepared in accordance with the Standards of Generally Recognised Accounting Practices (GRAP) and the Standards of Generally Accepted Municipal Accounting Practices (GAMAP) prescribed by the Minister of Finance in terms of:

General Notice 522 of 2007, issued in Government Gazette no. 30013 of 29 June 2007;

The Standards comprise of the following:

GRAP 1 Presentation of Financial Statements GRAP 2 Cash Flow Statements GRAP 3 Accounting Policies, Changes in Accounting Estimates and Errors GRAP 4 The Effects of Changes in Foreign Exchange Rates GRAP 5 Borrowing Costs GRAP 6 Consolidated and Separate Financial Statements GRAP 7 Investments in Associate GRAP 8 Interest in Joint Ventures GRAP 9 Revenue from Exchange Transactions GRAP 10 Financial Reporting in Hyperinflationary Economies GRAP 11 Construction Contracts GRAP 12 Inventories GRAP 13 Leases GRAP 14 Events after the Reporting Date GRAP 16 Investment Property GRAP 17 Property Plant and Equipment GRAP 19 Provisions, Contingent Liabilities and Contingent Assets GRAP 100 Non-current Assets held for Sale and Discontinued Operations GRAP 101 Agriculture GRAP 102 Intangible Assets

Accounting policies for material transactions, events or conditions not covered by the above GRAP Standards have been developed in accordance with paragraphs .07, .11 and .12 of GRAP 3. The pronouncements of the following standard setters were used, in descending order, to develop an appropriate accounting policy:

 International Public Sector Accounting Standards Board (IPSASB).

 International Accounting Standards Board (IASB), including the Framework for the Preparation and Presentation of Financial Statements.

 Accounting Practices Board (APB).

 Accounting Practices Committee (APC) of the South African Institute of Chartered Accountants (SAICA).

The principal accounting policies adopted in the preparation of these annual financial statements are set out below.

These accounting policies changed from the previous year, but have no material impact on the annual financial statements.

1.1 SIGNIFICANT JUDGEMENTS

In preparing the Group Annual Financial Statements, management is required to make estimates and assumptions that affect the amounts represented in the Group Annual Financial Statements and related disclosures. Use of available information and the application of judgement is inherent in the formation of estimates. Actual results in the future could differ from these estimates which may be material to the Group Annual Financial Statements. Significant judgements include:

250 251 38 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Accounting Policies

1.1 SIGNIFICANT JUDGEMENTS (continued)

Useful lives of waste and water network

The Municipality determines the estimated useful lives and related depreciation charges for the waste water and water networks. This estimate is based on industry benchmark. Management will increase the depreciation charge where useful lives are less than previously estimated useful lives.

Post retirement benefit Obligation

The present value of the post retirement obligation depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) include the discount rate. Any changes in these assumptions will impact on the carrying amount of post retirement obligations.

The Municipality determines the appropriate discount rate at the end of each year. This is the interest rate that should be used to determine the present value of estimated future cash outflows expected to be required to settle the pension obligations. In determining the appropriate discount rate, the Municipality considers the interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the related pension liability.

Other key assumptions for pension obligations are based on current market conditions. Additional information is disclosed in Note 6.

Expected manner of realisation for deferred tax

Deferred tax is provided for based on the expected manner of recovery i.e. sale or use. This manner of recovery affects the rate used to determine the deferred tax liability. Refer note 11 – Deferred tax .

Effective interest rate

The Municipality used the prime interest rate to discount future cash flows.

Provision for impairment of trade receivables

The provision for impairment is measured as the difference between the assets' carrying amount and the present value of estimated future cash flow discounted at the effective interest rate computed at initial recognition.

Impairment testing

Management used the fair value less cost to sell to determine the recoverable amount of intangible assets with an indefinite useful life and identifying assets that may have been impaired. Additional disclosure of these estimates is included in note - Impairment of assets

Provisions

Provisions were raised and management determined an estimate based on the information available. Additional disclosure of these estimates of provisions are included in note 5 - Provisions.

Provisions are measured at the directors' best estimate of the expenditure required to settle the obligation at the reporting date, and are discounted to present value where the effect is material.

39 252 253 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Accounting Policies

1.1 SIGNIFICANT JUDGEMENTS (continued)

A provision is recognised when:  the company has a present obligation (legal or constructive) as a result of a past event;  it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and  a reliable estimate can be made of the amount of the obligation.

Contingent provisions on business combinations

Contingencies recognised in the current year required estimates and judgments, refer to note 49 on acquisition on business combinations.

Taxation

Judgement is required in determining the provision for income taxes due to the complexity of legislation. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The municipality recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.

The municipality recognises the net future tax benefit related to deferred income tax assets to the extent that it is probable that the deductible temporary differences will reverse in the foreseeable future. Assessing the recoverability of deferred income tax assets requires the municipality to make significant estimates related to expectations of future taxable income. Estimates of future taxable income are based on forecast cash flows from operations and the application of existing tax laws in each jurisdiction. To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the municipality to realise the net deferred tax assets recorded at the statement of financial position date could be impacted.

1.2 PRESENTATION CURRENCY

The functional currency is South African Rand and these Group Annual Financial Statements are presented as such.

1.3 GOING CONCERN ASSUMPTION

These Group Annual Financial Statements have been prepared on the going concern basis.

1.4 COMPARATIVES INFORMATION

1.4.1 CURRENT YEAR COMPARATIVES

Budgeted amounts have been included in the Group Annual Financial Statements for the current financial year only. Refer to Appendix E1 and E2.

1.4.2 PRIOR YEAR COMPARATIVES

When the presentation or classification of items in the Group Annual Financial Statements is amended, prior period comparative amounts are reclassified. The nature and reason for the reclassification is disclosed. Refer to note 51 for the nature and reasons for the reclassification of prior year comparatives.

1.5 OFFSETTING

Assets, liabilities, revenue and expenses have not been offset except when offsetting is required or permitted by a Standard of GRAP or GAAP

40 252 253 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Accounting Policies

1.6 RESERVES

1.6.1 CAPITAL REPLACEMENT RESERVE (CRR)

In order to finance the provision of infrastructure and other items of property, plant and equipment from internal sources, amounts are transferred from the accumulated surplus to the CRR. A corresponding amount is transferred to a designated CRR bank account or investment account. The cash in the designated bank account can only be utilised to finance items of property, plant and equipment. The CRR is reduced and the accumulated surplus/deficit is credited by a corresponding amount when the CRR is utilised or when there are not sufficient cash backed resources available.

The amount transferred to the CRR is based on the Municipality’s need to finance future capital projects included in the Integrated Development Plan.

1.6.2 COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES (COID) RESERVE

The Compensation for Occupational Injuries and Diseases Act (Act 130 of 1993) is to provide for payment of medical treatment and compensation for disablement caused by occupational injuries or diseases sustained or contracted by employees in the course of their employment, or for death resulting from such injuries or diseases. The contribution to the COID fund is 0.75% of the salary expense. CJMM is an exempt employer in terms of Section 84 (1) (a)(ii) & (2) and as such does not pay any assessments to the COID Commissioner. In terms of the exempt status CJMM is mandated to establish its own fund and administers this fund in terms of the COID Act.

1.7 BORROWING COSTS

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of that asset until such time as the asset is ready for its intended use. The amount of borrowing costs eligible for capitalisation is determined as follows:  Actual borrowing costs on funds specifically borrowed for the purpose of obtaining a qualifying asset less any temporary investment of those borrowings.  Weighted average of the borrowing costs applicable to the entity on funds generally borrowed for the purpose of obtaining a qualifying asset. The borrowing costs capitalised do not exceed the total borrowing costs incurred.

The capitalisation of borrowing costs commences when:  expenditures for the asset have occurred;  borrowing costs have been incurred, and  activities that are necessary to prepare the asset for its intended use or sale are in progress.

Capitalisation is suspended during extended periods in which active development is interrupted.

Capitalisation ceases when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete.

All other borrowing costs are recognised as an expense in the period in which they are incurred.

1.8 PROVISIONS

Provisions are recognised when the Municipality has a present or constructive obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the provision can be made. Provisions are reviewed at reporting date and adjusted to reflect the current best estimate. Non-current provisions are discounted to the present value using a discount rate based on the average cost of borrowing to the Municipality.

254 255 41 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Accounting Policies

1.9 RETIREMENT BENEFITS

1.9.1 Pension funds

CJMM and certain Municipal Entities provide defined contribution retirement benefit plans for the benefit of employees. The employees and the employers in the group fund these plans, taking into account the recommendations of independent actuaries where relevant. The group also provides gratuity plans and subsidies after retirement for medical aid contributions and housing costs. These plans are partly unfunded, except that in respect of the Municipal Entities a portion of the cost may be recovered from CJMM.

1.9.2 Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which an entity pays a fixed contribution into a separate entity and will have no legal or constructive obligation to pay further amounts.

The group’s funding of defined contribution plans is charged to the statement of financial performance in the same period as the related service is provided.

1.9.3 Post-retirement medical benefits

The group operates a number of employee medical schemes. The group provides post-retirement medical benefits to certain ex-employees. The liability for these benefits up to the date of the formation of the Municipal Entities has been assumed by CJMM. These benefits are charged to the statement of financial performance in the year of payment. The expected costs of these benefits are accrued over the period of employment.

Actuarial valuations are conducted on an annual basis by independent actuaries.

The method of funding prescribed by IAS19 (AC116) is called the “Projected Unit Method”. Under this method the accrued service liabilities are determined by projecting all future payments which will be paid by the employer in respect of benefits accrued up to the Valuation Date. Assumptions are made in respect of, inter-alia, medical scheme contribution increases, withdrawals, deaths and ill-health, early and normal retirements. These payments are discounted at the valuation rate of discount to determine the present value of the liabilities at the Valuation Date.

Actuarial gains and losses are recognised in full in the period that they arise as income or expenditure.

1.9.4 Housing subsidies

The CJMM provides post-retirement housing subsidies for qualifying staff members. The payment of these subsidies is reflected as expenditure in the statement of financial performance.

Actuarial gains and losses are recognised in full in the period that they arise as income or expenditure.

1.9.5 Gratuities

CJMM provides gratuities for qualifying staff members in terms of the relevant conditions of employment. The expenditure is recognised in the statement of financial performance when the gratuity is paid.

Actuarial gains and losses are recognised in full in the period that they arise as income or expenditure.

1.10 PURCHASE OF SERVICE

Certain pension funds allow members to purchase additional service in terms of the fund’s rules. This is reflected in the statement of financial performance when the expense is incurred.

1.11 BONUS PENSIONABLE SERVICE AND MEDICAL BOARDINGS

The benefits of Bonus Pensionable Service and Medical Boardings are afforded to members of certain funds in terms of the applicable rules of the relevant funds. The payments are accounted for in the statement of financial performance in the period in which it is paid.

254 255 42 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Accounting Policies

1.12 BIOLOGICAL ASSETS

Livestock and breeding stock are measured at their fair value less estimated point-of-sale costs.

The fair value is determined based on market prices of livestock of similar age, breed, and genetic merit, sold in June of that year. Such livestock can be regarded to be consumable biological assets. The biological assets classified as current assets can be regarded to be mature.

Management reviews the biological assets on a regular basis to determine which livestock are to be held as breeding stock and those to be sold.

1.13 INVESTMENT PROPERTY

Investment properties, which are properties held to earn rental revenue or for capital appreciation, are stated at cost less accumulated depreciation and accumulated impairment losses. Depreciation is calculated on cost, using the straight-line method over the useful life of the property, which is 25 to 30 years, except for land where no depreciation is provided for.

Cost model

Where an investment property is acquired at no cost, or for a nominal cost, its cost is its fair value as at the date of acquisition.

1.14 PROPERTY, PLANT AND EQUIPMENT

The cost of an item of property, plant and equipment is recognised as an asset when:  it is probable that future economic benefits associated with the item will flow to the municipality; and  the cost of the item can be measured reliably.

When parts of an item of property, plant and equipment has different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Heritage assets, which are culturally significant resources and which are shown at cost, are not depreciated owing to the uncertainty regarding their estimated useful lives. Land is not depreciated as it is deemed to have an indefinite life.

Property, plant and equipment constitutes five major categories. Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses, except land as indicated below.

The cost of an item of property, plant and equipment comprises its purchase price, including import duties and non- refundable purchase taxes, and any directly attributable costs incurred in the acquisition, establishment and installation of such assets so as to bring them to working condition for their intended use.

Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

The cost of an item of property, plant and equipment acquired in exchange for a non-monetary asset or monetary assets, or a combination of monetary and non-monetary assets was measured at its fair value. If the acquired item could not be measured at its fair value, its cost was measured at the carrying amount of the asset given up. Where an asset is acquired at no cost, or for a nominal cost, its cost is its fair value as at the date of acquisition.

Residual Value

The Municipality maintains and acquires assets to provide a social service to the community with no intention of disposing the assets for any economic gain and thus no residual values are determined.

Property, plant and equipment (excluding land) are depreciated to a nil value with no residual values being maintained. Where there are residual values these are not material.

Depreciation

Depreciation is calculated so as to write off the cost of property, plant and equipment on a straight-line basis, over the estimated useful life. Depreciation of asset commences when the asset is ready for its intended use.

Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets or, where shorter, the term of the relevant lease if there is no reasonable certainty that the Municipality will obtain ownership by the end of the lease term.

25643 257 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Accounting Policies

1.14 PROPERTY, PLANT AND EQUIPMENT (continued)

Profits and losses arising on the disposal or retirement of an item of property, plant and equipment, determined as the difference between the actual proceeds and the carrying amount of the assets, are recognised in the statement of financial performance in the period in which they occur.

Landfill site, where historical experience indicates that restoration costs will be incurred; a liability for the site restoration costs is recorded. The liability recorded is measured at the present value of the estimated future restoration costs to be incurred. The present value of the liability is capitalised to the underlying landfill site asset to which the restoration costs relate at the inception of the restoration obligation. These amounts are amortised over the estimated useful life of the related asset

Where items of property, plant and equipment have been impaired, the carrying value is adjusted by the impairment loss, which is recognised as an expense in the period that the impairment is identified.

Subsequent expenditure is capitalised when the recognition and measurement criteria of an asset are met.

Property, plant and equipment held for use in the supply of goods or services or for administrative purposes are stated in the statement of financial position at cost less accumulated depreciation and any impairment losses.

The residual value and the useful life of assets are reviewed annually and, if expectations differ from previous estimates, the change(s) are accounted for as a change in an accounting estimate in accordance with the Standard of GRAP on Accounting Policies, Changes in Accounting Estimates and Errors.

The annual depreciation rates are based on the following estimated asset lives:

Item Years Land and Buildings  Buildings 30 years

Specialised vehicles  Specialist vehicles 10 years

Infrastructure  Roads and paving 30 years  Pedestrian malls 30 years  Electricity 40 - 85 years  Water infrastructure 100 years  Sewerage infrastructure 100 years  Housing 30 years  Landfill site 16 - 36 years

Community  Buildings 30 years  Recreational facilities 20 - 30 years  Security 5 years

Other Property, Plant and Equipment  Buildings 30 years  Other vehicles 5 years  Furniture and fittings 7 - 10 years  Watercraft 15 years  Office equipment 3 - 7 years  Specialist plant and equipment 10 - 15 years  Other items of plant and equipment 2 - 5 years  Bins and containers 5 years

44

256 257 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Accounting Policies

1.14 PROPERTY, PLANT AND EQUIPMENT (continued)

Impairment of cash generating assets

Assets that are subject to impairment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recovered.

An impairment loss is recognised if the recoverable amount of an asset is less than its carrying amount. The impairment loss is recognised as an expense in the consolidated statement of financial performance immediately. The recoverable amount of the asset is the higher of the asset fair value less cost of disposal and its value in use.

The fair value represents the amount obtainable from the sale in an arm’s length transaction between knowledgeable, willing parties.

For an asset that does not generate cash inflows largely independent of those from other assets, the recoverable amount is determined for the cash-generating unit to which the assets belongs. A cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash flows from other assets or group of assets. An impairment loss is recognised whenever the recoverable amount of a cash-generating unit is less than its carrying amount

The impairment loss is allocated to reduce the carrying amount of the asset. The carrying amount of individual assets are not reduced below the higher of its value in use, zero or fair value less cost of disposal.

A previously recognised impairment loss related to assets is reversed if there has been a change in the estimates used to determine the recoverable amount, however not to an amount higher than the carrying amount that would have been determined had no impairment loss been recognised in prior periods.

After the recognition of an impairment loss, any depreciation charge for the asset is adjusted for future periods to allocate the assets’ revised carrying amount on a systematic basis over its remaining useful life.

Impairment of non-cash generating assets

Non-cash generating assets such as Infrastructure and Community assets are not impaired as no open market value can be obtained and there is no intention to sell these assets as they are for the benefit of the community.

The Group has various maintenance and upgrading programmes to ensure continuous uphold and sustained use of these non-cash generating assets.

1.15 INTANGIBLE ASSETS

Intangible assets are carried at cost less any accumulated amortisation and any impairment losses.

Software is amortised on a straight-line basis over its anticipated useful life, from the date that they are available for use.

By their nature, servitudes confer upon the holder a right in perpetuity over the property and as these rights have an indefinite useful life, they are not amortised.

Generally, costs associated with developing computer software programmes are recognised as an expense as incurred. However, costs that are clearly associated with an identifiable and unique product, which will be controlled by the group and have a probable benefit exceeding the cost beyond one year, are recognised as an intangible asset. Associated costs include staff costs of the development team and an appropriate portion of relevant overheads.

Expenditure, which enhances and extends the benefits of computer software programmes beyond the original life of the software is capitalised. Computer software development costs recognised as assets are amortised using the straight-line method over their useful lives. Costs associated with the maintenance of existing computer software programmes are expensed as incurred.

Research and development expenditure is written off as incurred.

45 258 259 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Accounting Policies

1.15 INTANGIBLE ASSETS (continued)

Amortisation is provided to write down the intangible assets, on a straight-line basis, to their residual values as follows:

Item Useful life Additional capacity rights 10 years Servitudes Indefinite Computer software 2 - 8 years

1.16 FINANCIAL ASSETS, INVESTMENTS AND LIABILITIES

Financial assets at fair value through surplus or deficit

Financial assets at fair value through surplus or deficit are financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling in the short-term.

Investments are recognised and derecognised on a trade date basis where the purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned.

Investments are measured initially and subsequently at fair value, gains and losses arising from changes in fair value are included in surplus or deficit for the period.

Transaction costs are recognised in surplus or deficit. Dividend income is recognised in the statement of financial performance as part of other income when the municipality’s right to receive payment is established.

Fair value determination

The fair values of quoted investments are based on current bid prices. If the market for a financial asset is not active (and for unlisted securities), the group annual financial statements establishes fair value by using valuation techniques. These include the use of recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, and option pricing models making maximum use of market inputs and relying as little as possible on entity-specific inputs.

Held to maturity

These financial assets are initially measured at fair value plus direct transaction costs.

At subsequent reporting dates these are measured at amortised cost using the effective interest rate method, less any impairment loss recognised to reflect irrecoverable amounts. An impairment loss is recognised in surplus or deficit when there is objective evidence that the asset is impaired, and is measured as the difference between the investment’s carrying amount and the present value of estimated future cash flows discounted at the effective interest rate computed at initial recognition. Impairment losses are reversed in subsequent periods when an increase in the investment’s recoverable amount can be related objectively to an event occurring after the impairment was recognised, subject to the restriction that the carrying amount of the investment at the date the impairment is reversed shall not exceed what the amortised cost would have been had the impairment not been recognised.

Financial assets that the municipality has the positive intention and ability to hold to maturity are classified as held to maturity.

Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that the municipality has the positive intention and ability to hold to maturity.

Loans and receivables and held-to-maturity investments are carried at amortised cost using the effective interest method. Realised and unrealised gains and losses arising from changes in the fair value of the ‘Financial assets at fair value through surplus or deficit category are included in the Statement of Financial Performance in the period in which they arise.

258 259 46 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Accounting Policies

1.16 FINANCIAL ASSETS, INVESTMENTS AND LIABILITIES (continued)

Hedging activities

The municipality designates certain derivatives as either:  hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value hedge)  hedges of a particular risk associated with a recognised asset or liability or a highly probable forecast transaction cash flow hedge;

The municipality documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The municipality also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.

The fair values of various derivative instruments used for hedging purposes are disclosed in note.

The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining hedged item is more than 12 months, and as a current asset or liability when the remaining maturity of the hedged item is less than 12 months.

Cash flow hedge

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in equity. The gain or loss relating to the ineffective portion is recognised immediately in the statement of financial performance within other income.

Amounts accumulated in equity are recycled in the statement of financial performance in the periods when the hedged item affects surplus or deficit (for example, when the forecast sale that is hedged takes place).

The gain or loss relating to the effective portion of interest rate swaps hedging variable rate borrowings is recognised in the statement of financial performance within finance costs. The gain or loss relating to the ineffective portion is recognised in the statement of financial performance within other income.

However, when the forecast transaction that is hedged results in the recognition of a non-financial asset (for example, inventory or fixed assets) the gains and losses previously deferred in equity are transferred from equity and included in the initial measurement of the cost of the asset. The deferred amounts are ultimately recognised in cost of goods sold in case of inventory or in depreciation in case of fixed assets.

When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in the statement of financial performance.

When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the statement of financial performance within other income.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and with no intention of trading. They are included in current assets, except for maturities greater than 12 months after the balance sheet date. These are classified as non-current assets. Loans and receivables are included in trade and other receivables in the Statement of Financial Position.

Impairment of financial assets

The municipality assesses at each statement of financial position date whether there is any indication that an asset may be impaired. If any such indication exists, the municipality estimates the recoverable amount of the asset.

Irrespective of whether there is any indication of impairment, the municipality also:  tests intangible assets with an indefinite useful life or intangible assets not yet available for use for impairment annually by comparing its carrying amount with its recoverable amount. This impairment test is performed during the annual period and at the same time every period.  tests goodwill acquired in a business combination for impairment annually.

47 260 261 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Accounting Policies

1.16 FINANCIAL ASSETS, INVESTMENTS AND LIABILITIES (continued)

If there is any indication that an asset may be impaired, the recoverable amount is estimated for the individual asset. If it is not possible to estimate the recoverable amount of the individual asset, the recoverable amount of the cash- generating unit to which the asset belongs is determined.

The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs to sell and its value in use.

If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. That reduction is an impairment loss.

In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessment of the time value of money and the risks specific to the asset.

Property, plant and equipment and other non-current, and intangible assets, are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised in the Statement of Financial Performance for the amount by which the carrying amount of the asset exceeds its recoverable amount, that is, the higher of the asset's net selling price and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows.

An impairment loss of assets carried at cost less any accumulated depreciation or amortisation is recognised immediately in profit or loss. Any impairment loss of a revalued asset is treated as a revaluation decrease.

Goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units, or groups of cash-generating units, that are expected to benefit from the synergies of the combination.

An impairment loss is recognised for cash-generating units if the recoverable amount of the unit is less than the carrying amount of the units. The impairment loss is allocated to reduce the carrying amount of the assets of the unit in the following order:  first, to reduce the carrying amount of any goodwill allocated to the cash-generating unit and  then, to the other assets of the unit, pro rata on the basis of the carrying amount of each asset in the unit.

An entity assesses at each reporting date whether there is any indication that an impairment loss recognised in prior periods for assets other than goodwill may no longer exist or may have decreased. If any such indication exists, the recoverable amounts of those assets are estimated.

The increased carrying amount of an asset other than goodwill attributable to a reversal of an impairment loss does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior periods.

A reversal of an impairment loss of assets carried at cost less accumulated depreciation or amortisation other than goodwill is recognised immediately in profit or loss. Any reversal of an impairment loss of a revalued asset is treated as a revaluation increase.

Investments in Derivative Financial Instruments

Derivative financial instruments, consisting of interest rate swaps, are initially measured at fair value on the contract date, and are re-measured to fair value at subsequent reporting dates.

Derivatives embedded in other financial instruments or other non-financial host contracts are treated as separate derivatives when their risks and characteristics are not closely related to those of the host contract and the host contract is not carried at fair value with unrealised gains or losses reported in profit or loss.

Changes in the fair value of derivative financial instruments are recognised in profit or loss as they arise.

Derivative financial instruments are initially recorded at cost and are remeasured to fair value at subsequent reporting dates.

48 260 261 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Accounting Policies

1.16 FINANCIAL ASSETS, INVESTMENTS AND LIABILITIES (continued)

Changes in the fair value of derivative financial instruments that are designated and effective as cash flow hedges are recognised directly in accumulated surpluses/(deficits). Amounts deferred in net assets are recognised in the Statement of Financial Performance in the same period in which the hedged firm commitment or forecasted transaction affects net surplus/(deficit).

Changes in the fair value of derivative financial instruments that do not qualify for hedge accounting are recognised in the Statement of Financial Performance as they arise.

A derivative is a financial instrument whose value changes in response to an underlying variable, requires little or no initial investment and is settled at a future date. In particular, derivatives are accounted for as hedges, when the instrument is entered into with the intention to hedge risk on a particular transaction; the hedge instrument is effective in hedging against volatility in interest rates. The City uses derivative instruments for non-speculative purposes.

Derivatives are initially recognised at fair value and re-measured subsequently at fair value. Fair values are obtained from quoted market prices, discounted cash flow models and options pricing models which consider current market and contractual prices for the underlying instruments as well as the time value of money.

The fair value of interest rate swaps is the estimated amount that the City would receive or pay to terminate the swap at the balance sheet date, taking into account current interest rates and the current creditworthiness of the swap counterparties.

All derivative instruments are carried as trading assets when the fair value is positive and as trading liabilities when the fair value is negative and there is no off-setting. Realised and unrealised gains and losses are recognised in surplus or deficit. A corresponding asset (unrealised gains) or liability (unrealised losses) is raised on the balance sheet.

Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that the municipality has the positive intention and ability to hold to maturity.

Loans and receivables and held-to-maturity investments are carried at amortised cost using the effective interest method. Realised and unrealised gains and losses arising from changes in the fair value of the ‘Financial assets at fair value through profit or loss’ category are included in the Statement of Financial Performance in the period in which they arise.

1.17 INVESTMENTS IN MUNICIPAL ENTITIES

Group Annual Financial Statements

The Group Annual Financial Statements include those of the holding company and its subsidiaries. The results of the subsidiaries are included from the effective date of acquisition.

Consolidated financial statements are prepared, on acquisition the group recognises the subsidiary’s identifiable assets, liabilities and contingent liabilities at fair value, except for assets classified as held-for-sale, which are recognised at fair value less costs to sell, from the date control commences until the control ceases.

Municipal Annual Financial Statements

In the Municipality’s separate Annual Financial Statements, investments in municipal entities are carried at cost less any accumulated impairment.

In the Municipality's separate Annual Financial Statements, investments in municipal entities are carried at cost less any accumulated impairment.

Municipal entities are entities controlled by the CJMM. Control exists when the CJMM has the power to govern the financial and operating policies of an entity from its activities. In accessing control, potential voting rights that are currently exercisable are taken into account.

49 262 263 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Accounting Policies

1.18 INVESTMENT IN JOINT VENTURES

Group Annual Financial Statements

An investment in a joint venture is accounted for using the proportionate consolidation method, except when the asset is classified as held-for-sale. Under the proportionate consolidation method the group’s share of each of the assets, liabilities, income and expenses of the investment is combined line by line with similar items in the group annual financial statements. The use of proportionate consolidation is discontinued from the date on which it ceases to have joint control over a jointly controlled entity.

An investment in a joint venture is accounted for using the equity method, except when the asset is classified as held- for-sale. Under the equity method, the investment in a joint venture is initially recognised at cost and the carrying amount is increased or decreased to recognise the group's share of the profits or losses of the investee after acquisition date. The use of the equity method is discontinued from the date on which the municipality ceases to have joint control over, or have significant influence in, a jointly controlled entity.

Municipal Annual Financial Statements

A joint venture is a contractual arrangement whereby the Municipality and other parties undertake an economic activity that is subject to joint control. Interests in jointly controlled entities are stated at cost.

1.19 INVESTMENTS IN ASSOCIATES

Municipal Annual Financial Statements

An associate is an entity over which the Municipality is in a position to exercise significant influence, through participation in the financial and operating policy decisions of the investee.

The results and assets and liabilities of associates are incorporated in these financial statements using the equity method of accounting. The carrying value of the investment in associates is adjusted for the municipality’s share of operating surpluses/(deficits) less any dividends received.

Where the Municipality or its Municipal Entities transact with an associate, unrealised gains and losses are eliminated to the extent of the Municipality’s or its Municipal Entities’ interest in the relevant associate, except where unrealised losses provide evidence of an impairment of the asset transferred. When CJMM's share of losses exceeds its interest in an equity accounted investee, the carrying amount of the interest is reduced to nil , and the recognition of further losses is discontinued except to the extent that the CJMM has an obligation or has made payments on behalf of the investee.

Where the Municipality is no longer able to exercise significant influence over the associate the equity method of accounting is discontinued.

The carrying amounts of such investments are reduced to recognise any decline, other than a temporary decline, in the value of individual investments.

1.20 INVENTORIES

Inventories include consumable stores, maintenance materials, spare parts for plant and equipment, work in progress and land and or property held for sale. Cost is determined by the first-in-first-out method and comprises all costs of purchases, costs of development, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Inventories are stated at the lower of cost and current replacement cost. Current replacement cost represents the cost the municipality would incur to acquire the asset on the reporting date. Where inventories are acquired at cost, or for nominal consideration, their costs are their fair value as at the date of acquisition.

When inventories are sold, exchanged or distributed the carrying amount of those inventories shall be recognised as an expense on the period in which the related revenue is recognised. If there is no related revenue, the expense is recognised when goods are distributed or related service is rendered.

The amount of any write-down of inventories and all losses of inventories shall be recognised as an expense in the period the write-down or loss occurs. The amount of any reversal of any write-down of inventories, arising from an increase in net realisable value, shall be recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.

262 263 50 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Accounting Policies

1.21 REVENUE

Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of the Municipality’s activities. Revenue is shown net of value added tax, estimated returns, rebates and discounts and after eliminated revenue within departments of the Municipality.

Revenue is recognised as follows:

Service charges relating to electricity and water are based on consumption. Meter readings are made on a quarterly basis and are recognised as revenue when invoiced. Provisional estimates of consumption are made monthly where meter readings have not been performed. The provisional estimates of consumption are recognised as revenue when invoiced.

Adjustments to provisional estimates of consumption are made in the invoicing period in which meters have been read. These adjustments are recognised as revenue in the invoicing period.

Service charges relating to refuse removal are recognised on a monthly basis in arrears by applying the approved tariff to each property that has improvements. Tariffs are determined per category of property usage, and are levied monthly based on the number of refuse containers on each property, regardless of whether or not containers are emptied during the month.

Revenue from the sale of electricity pre-paid meter cards is recognised at the point of sale and not when prepaid electricity is consumed.

Revenue from the sale of goods is recognised when the risks and rewards of ownership are passed to the purchaser.

Revenue arising from the application of the approved tariff of charges is recognised when the relevant service is rendered by applying the relevant gazetted tariff. This includes the issuing of licenses and permits.

Interest and rentals are recognised on a time proportion basis.

Income for agency services is recognised on a monthly basis once the income collected on behalf of agents has been quantified. The income recognised is in terms of the agency agreement.

Finance income from the sale of housing by way of installment sale agreements or finance leases is recognised on a time proportion basis.

Revenue from public contributions is recognised when all conditions associated with the contribution have been met or where the contribution is to finance property, plant and equipment, when such items of property, plant and equipment is brought into use. Where public contributions have been received but the municipality has not met the condition, a liability is recognised.

Revenue from property rates is recognised when the legal entitlement to this revenue arises. Collection charges are recognised when such amounts are legally enforceable. Penalty interest on unpaid rates is recognised on a time proportion basis.

Fines constitute both spot fines and summonses. Revenue from spot fines and summonses is recognised when payment is received.

Donations are recognised on a cash receipt basis or where the donation is in the form of property, plant and equipment, at the fair value of the consideration received or receivable.

Contributed property, plant and equipment is recognised when ownership of the items of property, plant and equipment is transferred to the municipality.

1.22 CONDITIONAL GRANTS AND RECEIPTS

Revenue received from conditional grants, donations and funding are recognised as revenue to the extent that the Municipality has complied with any of the criteria, conditions or obligations embodied in the agreement. To the extent that the criteria, conditions or obligations have not been met a liability is recognised.

264 265 51 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Accounting Policies

1.23 LEASES

Leases are classified as finance leases where substantially all the risks and rewards associated with ownership of an asset are transferred to the municipality. Property, plant and equipment subject to finance lease agreements are capitalised at their cash cost equivalent and the corresponding liabilities are raised. The cost of the item of property, plant and equipment is depreciated at appropriate rates on the straight-line basis over its estimated useful life. Lease payments are allocated between the lease finance cost and the capital repayment using the effective interest rate method. Lease finance costs are expensed when incurred.

Operating leases are those leases that do not fall within the scope of the above definition. Operating lease rentals are expensed as they become due.

Finance leases - The Municipality as lessor

Amounts due from lessees under finance leases or installment sale agreements are recorded as receivables at the amount of the Municipality’s net investment in the leases. Finance lease or installment sale income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Municipality’s net investment outstanding in respect of the leases or installment sale agreements.

Finance leases – The Municipality as lessee

The lease payments are apportioned between the finance charge and reduction of the outstanding liability.The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate on the remaining balance of the liability.

Operating leases - The Municipality as lessor

Assets leased to third parties under operating leases are included in property, plant and equipment in the statement of financial position.

They are depreciated over their expected useful lives on a basis consistent with similar owned property, plant and equipment. Rental income (net of any incentives given to lessees) is recognised on a straight-line basis over the lease term.

Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease.

Operating leases – The Municipality as lessee

Leases where the lessor retains substantially all the risks and rewards of ownership are classified as operating leases.

Payments made under operating leases (net of any incentives received from the lessor) are charged to the statement of financial performance on a straight-line basis over the period of the lease.

1.24 TAX

Current tax assets and liabilities

The tax currently payable is based on taxable income for the year. Taxable income differs from surplus as reported in the statement of financial performance, because it includes income and expenses that are taxable or tax deductible in other years and it further excludes items that are never taxable or tax deductible.

In the event that tax is payable it is based on taxable income for the year. Taxable income differs from surplus as reported in the statement of financial performance because it excludes income and expenses that are taxable or tax deductible in other years and it further excludes items that are never taxable or tax deductible.

Deferred income tax

A deferred tax liability is recognised for all taxable temporary differences, except to the extent that the deferred tax liability arises from the initial recognition of an asset or liability in a transaction which at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss).

A deferred tax asset is recognised for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilised. A deferred tax asset is not recognised when it arises from the initial recognition of an asset or liability in a transaction at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss). 264 265 52 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Accounting Policies

1.24 TAX (continued)

Deferred income tax, with respect to Municipal entities, is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Currently enacted tax rates are used to determine deferred income tax.

Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which temporary differences can be utilised.

Taxation

The Municipality is exempted from tax in terms of section 10(1)(a) of the Income Tax Act.

1.25 UNAUTHORISED EXPENDITURE

Unauthorised expenditure is expenditure that has not been budgeted, expenditure that is not in terms of the conditions of an allocation received from another sphere of government, municipality or organ of state and expenditure in the form of a grant that is not permitted in terms of the Municipal Finance Management Act (Act No. 56 of 2003). Unauthorised expenditure is accounted for as an expense in the statement of financial performance and where recovered, it is subsequently accounted for as revenue in the statement of financial performance.

1.26 IRREGULAR EXPENDITURE

Irregular expenditure is expenditure that is contrary to the Municipal Finance Management Act (Act No. 56 of 2003), the Municipal Systems Act (Act No. 32 of 2000), the Public Office Bearers Act (Act No. 20 of 1998) or in contravention of the group’s supply-chain management policy. Irregular expenditure excludes unauthorised expenditure. Irregular expenditure is accounted for as expenditure in the statement of financial performance and where recovered, it is subsequently accounted for as revenue in the statement of financial performance.

1.27 FRUITLESS AND WASTEFUL EXPENDITURE

Fruitless and wasteful expenditure is expenditure that was made in vain and would have been avoided had reasonable care been exercised. Fruitless and wasteful expenditure is accounted for as expenditure in the statement of financial performance and where recovered, it is subsequently accounted for as revenue in the statement of financial performance.

1.28 SEGMENTAL INFORMATION

Segmental information on property, plant and equipment, as well as income and expenditure, is set out in Appendices C and D, based on the International Government Financial Statistics classifications and the budget formats prescribed by National Treasury. The group operates solely in its area of jurisdiction as determined by the Demarcation Board.

53 266 267 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

2. STATEMENTS AND INTERPRETATIONS NOT YET EFFECTIVE

At the date of authorisation of these annual financial statements, the following Standards and Interpretations were in issue but not yet effective:

GRAP 18 - Segment Reporting

GRAP 21 - Impairment of non-Cash-Generating Assets

GRAP 23 - Revenue from non-Exchange Transactions (Taxes and Transfers)

GRAP 24 - Presentation of Budget Information in Financial Statements

GRAP 26 - Impairment of Cash-Generating Assets

GRAP 103 - Heritage Assets

These Standards are in line with the current standards applied by the CJMM and has no material impact on Group Annual Financial Statements.

266 267 54 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

3. LONG-TERM LIABILITIES

Liabilities Structured loans 962,529 1,004,437 962,529 1,004,437 Funding facility - 17,900 - 17,900 Development Bank South Africa 1,199,414 448,494 1,179,860 448,494 Local Registered Stock Loans 30,000 30,000 30,000 30,000 Municipal bonds 7,601,000 5,700,000 7,601,000 5,700,000 Jozi bonds 99,817 156,865 99,817 156,865 Other financial liabilities 462,246 551,346 327,430 363,840 Sub-total 10,355,006 7,909,042 10,200,636 7,721,536

Current portion of long term liabilities Structured loans 23,964 464,905 23,964 464,905 Funding facility - 17,643 - 17,643 Development Bank South Africa 106,098 68,627 106,098 68,627 Municipal bonds 1,008,843 - 1,008,843 - Other financial liabilities 92,005 67,174 36,410 130 Sub-total 1,230,910 618,349 1,175,315 551,305

Non-current liabilities At amortised cost 9,124,096 7,290,693 9,025,321 7,170,231 Sub total 9,124,096 7,290,693 9,025,321 7,170,231

Current liabilities At amortised cost 1,230,910 618,349 1,175,315 551,305 Sub total 1,230,910 618,349 1,175,315 551,305 Total 10,355,006 7,909,042 10,200,636 7,721,536

Municipal Manager's estimate of fair value of the financial liabilities Structured loans 962,529 1,004,437 962,529 1,004,437 Funding facility - 17,900 - 17,900 Development Bank of Stock Loans 1,199,414 448,494 1,179,860 448,494 Local Registered Stock Loans 30,000 30,000 30,000 30,000 Municipal bonds 7,643,069 5,428,750 7,643,069 5,428,750 Jozi bonds 99,817 156,865 99,817 156,865 Other financial liabilities 462,246 551,346 327,430 363,840 10,397,075 7,637,792 10,242,705 7,450,286

The Municipal Manager's estimate of fair value of financial liabilities was determined as follows:

Listed bonds fair values were calculated using the prices as quoted on Bond Exchange South Africa (BESA) on 30 June 2009. Retail bonds fair values were calculated using prices quoted on the Johannesburg Stock Exchange (JSE) on the 30 June 2009.

R 3,083,830 million ( 2008: R 2,677,320 million ) has been invested specifically in a ring-fenced account for the repayment of long-term liabilities. Refer to Note 47

268 269 55 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

4. FINANCE LEASE OBLIGATIONS

Minimum lease payments due - within one year 35,042 22,342 25,271 12,453 - in second to fifth year inclusive 87,229 38,907 73,389 18,726 Sub-total 122,271 61,249 98,660 31,179 less: future finance charges (13,213) (11,561) (7,318) (2,843) 109,058 49,688 91,342 28,336

Non-current liabilities 82,257 22,659 71,110 7,758 Current liabilities 26,801 27,029 20,232 20,578 109,058 49,688 91,342 28,336

It is municipality policy to lease certain buildings and equipment under finance leases.

A lease agreement for Soccer City Stadium was signed on the 7 August 2009 between the Department of Public Works ( Lessor ) and City of Johannesburg Metropolitan Municipality ( Lessee ). Term of the lease is 99 years. We have treated the lease as an adjusting post financial position event due the lease being effective prior to the financial year end.

Interest on Finance Leases are calculated at variable rates of interest, ranging between 9% and 15% per annum and repayments on these Finance Leases range from monthly to quarterly.

The Finance Lease terms range from three years to five years, after which the City has the option to purchase the leased asset or renew the Finance Lease contract.

The carrying values of the finance leased assets are included under other property, plant and equipment in the note to the financial statements as well as Appendix B (Reconciliation of property, plant and equipment).

Johannesburg Social Housing Company (Pty) Ltd received the following leasehold properties from CJMM at no cost :

Market Value Nearest Rand Bellavista 610,000 Antea Hostel 24,358,000 City Deep Hostel 35,426,000 Selby Hostel 5,363,000 Claremont 490,000 Orlando Ekhaya Hostel 686,050 Eldorado Park 10,957,000 Far East Bank 76,300,000 Klipspruit 2,686,242 Total 156,876,292

268 269 56 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

5. PROVISIONS

Reconciliation of provisions - GROUP - 2009

Opening Additions Utilised during Reversed Total Balance the year during the year Escalation on contracts 5,991 4,731 (3,099) - 7,623 Environmental rehabilitation: Closed 79,796 21,131 - 8,227 109,154 landfill site Environmental rehabilitation: Open 133,448 49,189 (1,603) 13,758 194,792 landfill sites Pension fund settlement 650,409 31,856 (399,846) - 282,419 869,644 106,907 (404,548) 21,985 593,988

Reconciliation of provisions - GROUP - 2008

Opening Additions Utilised during Reversed Total Balance the year during the year Escalation on contracts 3,597 2,724 (330) - 5,991 Environmental rehabilitation: Closed 72,338 - - 7,458 79,796 landfill site Environmental rehabilitation: Open 120,975 - - 12,473 133,448 landfill sites Pension fund settlement 445,108 205,301 - - 650,409 642,018 208,025 (330) 19,931 869,644

Reconciliation of provisions - CJMM - 2009

Opening Additions Utilised during Total Balance the year Pension fund settlement 650,409 32,010 (400,000) 282,419

Reconciliation of provisions - CJMM - 2008

Opening Additions Total Balance Pension fund settlement 445,108 205,301 650,409

Non-current liabilities 289,685 213,244 - - Current liabilities 304,303 656,400 282,419 650,409 593,988 869,644 282,419 650,409

Pikitup Johannesburg (Pty) Ltd

Escalation on contracts - Management’s best estimate of the obligation to settle escalations on procurement service contract.

Environmental rehabilitation – environmental obligation to rehabilitate the various landfill sites upon closure.

CJMM

Pension fund settlement – provision for the settlement of the defined benefit funds for the change to defined contribution funds. Refer to Note 49 for detail on contingencies raised relating to Pension Fund matters.

27057 271 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

6. RETIREMENT BENEFIT OBLIGATION

6.1. Defined benefit plan

Post-retirement liability Post-Retirement Medical Aid Plan (1,297,892) (1,192,340) (1,271,112) (1,188,871) Post-Retirement Housing Subsidy Plan (7,341) (8,250) (7,017) (7,893) Retirement Gratuity Plan (484,271) (439,830) (458,848) (431,789) Balance at end of year (1,789,504) (1,640,420) (1,736,977) (1,628,553)

6.1.1. Post-Retirement Medical Aid Plan

City of Johannesburg Metropolitan Municipality has obligations to subsidise medical aid contributions in respect of certain qualifying staff and pensioners and their surviving spouses. Only pensioners and employees who were aged 50 or older and were members of LA Health or Munimed (Key Health) on 1 July 2003, provided that they continuously remain contributory members of these medical schemes until retirement.

The City of Johannesburg Metropolitan Municipality operates on six accredited medical aid schemes, namely Global Health, Hosmed, Munimed, Bonitas, Samwumed and LA Health. Pensioners continue on the option they belonged to on the day of their retirement.

Amounts recognised in the Statement of financial position

Present value of unfunded obligation in 1,297,892 1,192,340 1,165,928 1,082,263 respect of CJMM employees In respect of notional accounts for - - 105,184 106,608 employees of MEs 1,297,892 1,192,340 1,271,112 1,188,871

Movements for the year

Opening balance 1,192,340 1,195,713 1,082,263 1,081,367 Benefits paid (109,098) (53,357) (106,155) (52,183) Other - 4,096 - - Net expense recognised in the 214,650 45,888 189,820 53,079 statement of financial performance Balance at end of year 1,297,892 1,192,340 1,165,928 1,082,263

Net expense recognised in the Statement of financial performance

Current service cost 5,209 5,405 2,685 2,821 Interest cost 107,875 94,436 98,000 85,000 Actuarial (gains)/losses 101,566 (53,953) 89,135 (34,742) Total, included in employee benefits 35 214,650 45,888 189,820 53,079 expense

Notional loan account

Opening balance - - 106,608 97,359 Interest received - - 9,518 9,249 Correction of error - - (9,303) - Benefits payments - - (1,639) - Balance at end of year - - 105,184 106,608

270 27158 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

6. RETIREMENT BENEFIT OBLIGATION (continued)

Key assumptions used

The principal actuarial assumptions used were as follows:

Discount rates used 8.40 % 9.50 % Expected rate of return on assets 8.40 % 9.50 % Rate of increase in employer post-retirement medical contribution subsidy 6.80 % 7.50 % payments Expected increase in salaries 6.80 % 7.00 %

Other assumptions:

Age of spouse - Husbands four years older than wives

Mortality of in-service members - In accordance with the SA 85-90 (Light) ultimate table (rated down three years for females)

Mortality of pensioners - In accordance with the PA(90) ultimate male and female tables

27259 273 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

6. RETIREMENT BENEFIT OBLIGATION (continued)

6.1.2. Post-Retirement Housing Subsidy Plan

The City of Johannesburg Metropolitan Municipality provides housing subsidies in respect of certain qualifying staff members. In the event that the housing loan that the subsidy related to is not fully repaid at retirement date, the subsidy will continue into the members' retirement. The subsidy amount is based on the subsidy being received at the date of valuation. The subsidy amount is assumed to remain constant and to continue for a period of ten years after retirement.

The above liability is unfunded. However, City of Johannesburg Metropolitan Municipality has undertaken to cover such portion of the liability for the staff of City of Johannesburg Metropolitan Municipality who are entitled to benefits that relates to their service with the City of Johannesburg Metropolitan Municipality since the City of Johannesburg Metropolitan Municipality was established. This amount was determined at 1 July 2003 and has been crystallised in the form of a notional loan account which earned interest and against which the company may claim benefit payments made. This loan does not constitute a plan asset and in terms of IAS 19 cannot be offset against the liability. It has however been included in the assets of the City of Johannesburg Metropolitan Municipality.

Amounts recognised in the Statement of financial position

Present value of unfunded obligation in 7,341 8,250 5,715 6,214 respect of CJMM employees In respect of notional accounts for - - 1,302 1,679 employees of MEs 7,341 8,250 7,017 7,893

Movements for the year

Opening balance 8,250 11,374 6,214 8,837 Benefits paid (1,349) (926) (1,373) (846) Net expense recognised in the 440 (2,198) 874 (1,777) statement of financial performance Balance at end of year 7,341 8,250 5,715 6,214

Net expense recognised in the Statement of financial performance

Current service cost 36 50 - - Interest cost 714 377 525 174 Actuarial (gains)/losses (310) (2,625) 349 (1,951) Total, included in employee benefits 35 440 (2,198) 874 (1,777) expense

Notional loan account

Opening balance - - 1,679 1,535 Interest received - - 156 144 Correction of error - - (533) - Balance at end of year - - 1,302 1,679

Key assumptions used

Assumptions used on last valuation on 30 June 2009.

Discount rates used 8.40 % 9.50 % Expected rate of return on assets 8.40 % 9.50 %

272 27360 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

6. RETIREMENT BENEFIT OBLIGATION (continued)

6.1.3. Post-Retirement Gratuity Plan

City of Johannesburg Metropolitan Municipality provides gratuities on retirement or prior death in respect of certain qualifying staff members who have service with the City of Johannesburg Metropolitan Municipality when they were not members of one of the retirement funds and who meet certain service requirements in terms of City of Johannesburg Metropolitan Municipality's conditions of employment. The gratuity amount is based on one month's salary per year of non-retirement funding service.

The above liability is unfunded. However, City of Johannesburg Metropolitan Municipality has undertaken to cover such portion of the liability for the staff of City of Johannesburg Metropolitan Municipality who are entitled to benefits that relates to their service with the City of Johannesburg Metropolitan Municipality since the company was established. This amount was determined at 1 July 2003 and has been crystallised in the form of a notional loan account which earned interest and against which the company may claim benefit payments made. This loan does not constitute a plan asset and in terms of IAS 19 cannot be offset against the liability. It has however been included in the assets of the City of Johannesburg Metropolitan Municipality.

The plan is a post-retirement gratuity benefit plan.

The amounts recognised in the Statement of Financial Position were determined as follows:

Amounts recognised in the Statement of financial position

Present value of unfunded obligation in 484,271 439,830 164,331 130,046 respect of CJMM employees In respect of notional accounts for - - 294,517 301,743 employees of MEs 484,271 439,830 458,848 431,789

Movements for the year

Opening balance 439,830 423,390 130,046 118,943 Benefits paid (28,708) (18,137) (17,049) (3,671) Other 941 - - - Net expense recognised in the 72,208 34,577 51,334 14,774 statement of financial performance Balance at end of year 484,271 439,830 164,331 130,046

Net expense recognised in the Statement of financial performance

Interest cost 40,397 34,149 11,545 9,511 Actuarial loss 31,811 428 39,789 5,263 Total, included in employee benefits 35 72,208 34,577 51,334 14,774 expense

Notional loan account

Opening balance - - 301,743 282,883 Interest received - - 26,239 25,919 Payments against account - - (15,830) (7,059) Correction of error - - (17,635) - Balance at end of year - - 294,517 301,743

27461 275 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

6. RETIREMENT BENEFIT OBLIGATION (continued)

Key assumptions used

Assumptions used on last valuation on 30 June 2009.

The principal actuarial assumptions used were as follows:

Discount rates used 8.40 % 9.50 % Expected rate of return on assets 8.40 % 9.50 % Expected increase in salaries 6.80 % 7.00 %

6.2. Multi employer funds

CJMM and its MEs provide post-employment benefits to all their permanent employees through two Multi-Employer funds.  Joint Municipal Pension Fund.  Municipal Employees Pension Fund.

6.2.1. Joint Municipal Pension Fund

The Joint Municipal Pension Fund is a hybrid pension fund registered in 1986 to provide pension benefits for employees in the Municipal sector. It has been closed to new entrants with effect from 1 January 2002.

In terms of paragraph 7 of IAS 19 (AC116) defined contribution plans are post-employment benefit plans under which an enterprise pays fixed contributions into a separate entity (a fund) and will have no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior periods. Although the Joint Municipal Pension Fund is a hybrid fund the participating employers have no constructive obligation to pay anything more than the fixed rate of contribution specified in the registered rules.

The rules of the Municipal Employees Pension Fund are very similar to those of the Joint Municipal Pension Fund in so far as the obligations of the local authorities are concerned.

In terms of the rules of this fund the Local Authorities participating in the fund are required, on a monthly basis, to deliver to the Fund:  The contributions payable by members;  An amount equal to 22% of the pensionable salaries upon which the members’ contributions are based;  Contributions payable by members whilst on unpaid leave and the equivalent 22% employer contribution thereon;  Members’ contributions in respect of the purchase of past service on rejoining a local authority;  The equivalent 22% employer contributions in respect of any previously unpaid member contributions;  Members’ contributions in respect of the voluntary purchase of past service.

The rules of the fund also provide that the sources of the fund shall consist of:  Contributions plus interest paid to the fund in terms of the rules;  Income derived from the investment of moneys of the fund; and  Any other money or assets to which the fund may become entitled.

There is no mention of any further contributions being required of participating local authorities in the event of deficits arising. It is therefore concluded that there is no constructive obligation on the part of the City to fund any deficits in this fund. Accordingly we believe that the fund should be regarded as a defined contribution fund for the purposes of IAS 19 (AC116).

In the case of this fund therefore, the contributions paid by the City should be expensed as required in terms of IAS 19 (AC116) for defined contribution funds.

274 27562 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

6. RETIREMENT BENEFIT OBLIGATION (continued)

6.2.2. The Municipal Employees Pension Fund

The Municipal Employees Pension Fund is a hybrid pension fund registered in 1988 to provide pension benefits for employees in the Municipal sector. It has been closed to new entrants with effect from 1 January 2002.

In terms of paragraph 7 of IAS 19 (AC116) defined contribution plans are post-employment benefit plans under which an enterprise pays fixed contributions into a separate entity (a fund) and will have no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior periods. Although the Municipal Employees Pension Fund is a hybrid fund the participating employers have no constructive obligation to pay anything more than the fixed rate of contribution specified in the registered rules.

CJMM and its MEs provide post-employment benefits to all their permanent employees through defined contribution funds. The following employee contributions have been made to the defined contribution plans.

City of Johannesburg Pension Fund 68,251 54,139 eJoburg Retirement Fund 144,239 92,951 Municipal Councillors pension Fund 6,538 5,390 National Fund for Municipal Workers 2,065 1,967 Soweto City Council Pension Fund 192 189 Municipal Employees Gratuity Fund 23,488 19,519 244,773 174,155

The following employee contributions have been made to the multi-employer plans.

Joint Municipal Pension Fund 2,221 2,004 Municipal Employees Pension Fund 9,271 7,564 11,492 9,568

7. CREDITORS

Trade payables 2,860,533 2,136,172 681,165 548,226 Payments received in advance 237,334 233,384 318 3,432 Accrued employee costs 562,124 456,603 369,139 313,137 Accrued interest 122,929 113,745 122,926 113,745 Retention's 204,789 150,264 54,799 35,230 Credit balances in consumer debtors 625,301 481,575 524,856 423,206 Engineering fees 263,180 298,867 57,057 66,215 Derivative trading liability 33,463 26,974 33,313 26,974 Other creditors 674,114 375,756 566,106 178,326 Related party creditor 50 83,945 110,312 2,795,296 2,791,220 Total Creditors 5,667,712 4,383,652 5,204,975 4,499,711

27663 277 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

8. FINANCIAL LIABILITIES BY CATEGORY

The accounting policies for financial instruments have been applied to the line items below:

GROUP - 2009

Financial Fair value Total liabilities at through profit amortised cost or loss

Non-Current Liabilities Long-term liabilities 9,124,096 - 9,124,096 Finance lease obligations 82,257 - 82,257 Deferred income 13,520 - 13,520 Consumer deposits 417,189 - 417,189

Current Liabilities Current portion of long-term liabilities 1,230,910 - 1,230,910 Finance lease obligations 26,801 - 26,801 Creditors 5,634,249 33,463 5,667,712 Bank overdraft 51,857 - 51,857 16,580,879 33,463 16,614,342

GROUP - 2008

Financial Fair value Total liabilities at through profit amortised cost or loss

Non-Current Liabilities Long-term liabilities 7,290,693 - 7,290,693 Finance lease obligations 22,659 - 22,659 Deferred income 1,658 - 1,658 Consumer deposits 387,433 - 387,433

Current Liabilities Current portion of long-term liabilities 618,349 - 618,349 Finance lease obligations 27,029 - 27,029 Creditors 4,356,678 26,974 4,383,652 Bank overdraft 51,887 - 51,887 12,756,386 26,974 12,783,360

276 27764 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

8. FINANCIAL LIABILITIES BY CATEGORY (continued)

CJMM - 2009

Financial Fair value Total liabilities at through profit amortised cost or loss

Non-Current Liabilities Long-term liabilities 9,025,321 - 9,025,321 Finance lease obligations 71,110 - 71,110 Deferred income 13,470 - 13,470 Consumer deposits 211,203 - 211,203

Current Liabilities Current portion of long-term liabilities 1,175,315 - 1,175,315 Finance lease obligations 20,232 - 20,232 Creditors 5,171,662 33,313 5,204,975 15,688,313 33,313 15,721,626

CJMM - 2008

Financial Fair value Total liabilities at through profit amortised cost or loss

Non-Current Liabilities Long-term liabilities 7,170,231 - 7,170,231 Finance lease obligations 7,758 - 7,758 Consumer deposits 202,335 - 202,335

Current Liabilities Current portion of long-term liabilities 551,305 - 551,305 Finance lease obligations 20,578 - 20,578 Creditors 4,472,737 26,974 4,499,711 12,424,944 26,974 12,451,918

27865 279 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

9. VAT PAYABLE

VAT receivable 182,881 207,758 171,856 188,364 VAT payable (385,155) (348,406) - - Nett VAT (202,274) (140,648) 171,856 188,364

VAT is payable on the receipts basis. Only once payment is received from debtors is VAT paid over to SARS.

10. UNSPENT CONDITIONAL GRANTS AND RECEIPTS

Conditional Grants from other spheres of Government: Provincial grants: capital projects 328,478 346,750 298,316 346,750 Municipal infrastructure grant 49,850 159,462 49,850 159,462 Financial management grant - 1,753 - 1,753 Restructuring grant 7,014 - - - Provincial grants: operating projects 3,231 2,318 3,231 2,318 Municipal system improvement grant - 4,282 - 4,282 Social housing foundation 80,149 12,259 - - Ellis Park Upgrading - 2010 8,969 2,836 8,969 2,836 Provincial grant: Soccer city 2010 6,166 1,871 6,166 1,871 Gautrain grant 579 1,095 579 1,095 Confederation cup 13,546 - 13,546 - 2010 Public Transport (SPTN) 441,490 341,471 441,490 341,471 Neighbourhood Development 6,701 - 6,701 - Partnership Grant

Other Conditional Receipts Public contributions 27,957 115,034 17,291 21,609 Total Conditional Grants and 974,130 989,131 846,139 883,447 Receipts

Non-current liabilities - - - - Current liabilities 974,130 989,131 846,139 883,447 974,130 989,131 846,139 883,447

See Note 33 for reconciliation of grants from National/Provincial Government.

278 27966 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

11. DEFERRED TAX LIABILITY

Deferred tax asset (liability)

Accelerated capital allowances for tax (21) 34 - - purposes Liabilities for health care benefits 1,802 635 - - accrued Provisions - 317 - - Revaluation - 437 - - Tax losses available for set off against - (1,938) - - future taxable income Recognised in equity 95 (39) - - Fair value and amortised cost 162 (139) - - adjustments Deferred income - (45) - - Trade and other receivables 154 1,034 - - Leases 239 599 - - Trade and other payables 886 317 - - Temporary difference (7,864) (9,021) - - Other deferred tax 90,549 64,428 - - 86,002 56,619 - -

Reconciliation of deferred tax asset (liability)

At beginning of the year 56,619 (3,829) - - Temporary difference on provisions (41,216) (27,221) - - Increase/(decrease) in tax losses 3,735 73 - - available for set off against future taxable income Temporary difference on retirement 5,762 18,682 - - benefits Income received in advance (322,909) (274,112) - - Leases (10,968) 8,366 - - Fair value and amortised cost (1,148) 771 - - adjustment Other movements 396,127 333,889 - - 86,002 56,619 - -

Deferred Tax Summary Deferred tax liability (8,779) (18,714) - - Deferred tax asset 94,781 75,333 - - 86,002 56,619 - -

12. CONSUMER DEPOSITS

Electricity and water deposits 414,310 383,651 208,324 198,553 Other deposits 2,879 3,782 2,879 3,782 417,189 387,433 211,203 202,335

28067 281 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

13. BIOLOGICAL ASSETS

GROUP 2009 2008 Cost / Accumulated Carrying value Cost / Accumulated Carrying value Valuation depreciation Valuation depreciation Breeding stock 5,976 - 5,976 4,474 - 4,474

Reconciliation of biological assets - GROUP - 2009

Opening Disposals Gains or lossesGains or losses Total Balance arising from arising from changes in fair physical value changes Breeding stock 4,474 (1,116) 1,089 1,529 5,976

Reconciliation of biological assets - GROUP - 2008

Opening Disposals Gains or lossesGains or losses Total Balance arising from arising from changes in fair physical value changes Breeding stock 3,684 (1,374) (200) 2,364 4,474

Non – Financial information

Quantities of each biological asset Bulls 22 21 - - Breeding heifers 263 217 - - Cows 674 638 - - Mammals 606 608 - - Aves 773 868 - - Reptilia 148 141 - - Amphibia 74 102 - - Insecta 22 - - - Pisces 159 125 - - Arthropoda - 35 - - 2,741 2,755 - -

280 28168 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

14. INVESTMENT PROPERTY

GROUP 2009 2008 Cost / Accumulated Carrying value Cost / Accumulated Carrying value Valuation depreciation Valuation depreciation Investment property 1,337,919 (86,349) 1,251,570 1,278,099 (80,161) 1,197,938

CJMM 2009 2008 Cost / Accumulated Carrying value Cost / Accumulated Carrying value Valuation depreciation Valuation depreciation Investment property 1,058,533 (5,644) 1,052,889 1,059,933 (4,323) 1,055,610

28269 283 City ofCity Johannesburg of Johannesburg Metropolitan Metropolitan Municipality Municipality Group AnnualGroup Financial Annual Financial Statements Statements for the year for endedthe year 30 ended June 200930 June 2009 NotesNotes to the to Group the Group Annual Annual Financial Financial Statements Statements

Figures inFigures Rand thousandin Rand thousand

14. INVESTMENT14. INVESTMENT PROPERTY PROPERTY (continued) (continued)

ReconciliationReconciliation of investment of investment property property - GROUP - GROUP- 2009 - 2009

Opening OpeningFounds FoundsDisposalsDisposalsTransfersTransfersDepreciationDepreciationTotal Total Balance Balance InvestmentInvestment property property 1,197,9381,197,938 143 143 (224) (224)60,045 60,045 (6,332) (6,332)1,251,5701,251,570

ReconciliationReconciliation of investment of investment property property - GROUP - GROUP- 2008 - 2008

Opening OpeningAdditionsAdditionsDisposalsDisposalsTransfersTransfersDepreciationDepreciationImpairmentImpairmentTotal Total Balance Balance InvestmentInvestment property property 1,181,3951,181,39512,482 12,482 (119) (119) 8,500 8,500 (4,097) (4,097) (223) (223)1,197,9381,197,938

ReconciliationReconciliation of investment of investment property property - CJMM -- 2009CJMM - 2009

Opening OpeningFounds FoundsDisposalsDisposalsTransfersTransfersDepreciationDepreciationTotal Total Balance Balance InvestmentInvestment property property 1,055,6101,055,610 143 143 (224) (224)(1,175) (1,175)(1,465) (1,465)1,052,8891,052,889

ReconciliationReconciliation of investment of investment property property - CJMM -- 2008CJMM - 2008

Opening OpeningDisposalsDisposalsDepreciationDepreciationTotal Total Balance Balance InvestmentInvestment property property 1,057,0871,057,087 (119) (119)(1,358) (1,358)1,055,6101,055,610

Market valuesMarket values

CJMM CJMM 1,979,4011,979,4012,063,8882,063,8882,136,2772,136,2772,136,2772,136,277 The JohannesburgThe Johannesburg Fresh Produce Fresh Produce 3,612 3,612 3,612 3,612 - - - - Market (Pty)Market Ltd (Pty) Ltd MetropolitanMetropolitan Trading CompanyTrading Company (Pty) (Pty) 55,002 55,002 55,002 55,002 - - - - Ltd Ltd JohannesburgJohannesburg Social Housing Social Housing 156,876 156,876 72,389 72,389 - - - - CompanyCompany (Pty) Ltd (Pty) Ltd 2,194,8912,194,8912,194,8912,194,8912,136,2772,136,2772,136,2772,136,277

70 70

282 283 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

15. PROPERTY, PLANT AND EQUIPMENT

GROUP 2009 2008 Cost / Accumulated Carrying value Cost / Accumulated Carrying value Valuation depreciation Valuation depreciation Land and buildings 11,686,953 (1,750,863) 9,936,090 10,374,472 (1,525,273) 8,849,199 Infrastructure 10,615,163 (1,628,014) 8,987,149 7,757,651 (1,304,255) 6,453,396 Community assets 540,408 (178,640) 361,768 471,030 (154,353) 316,677 Other property, plant and 12,142,046 (1,210,814) 10,931,232 9,682,042 (1,031,127) 8,650,915 equipment Specialised vehicles 495,762 (283,672) 212,090 507,225 (259,418) 247,807 Heritage assets 101,283 (21,381) 79,902 100,101 (20,180) 79,921 Total 35,581,615 (5,073,384) 30,508,231 28,892,521 (4,294,606) 24,597,915

CJMM 2009 2008 Cost / Accumulated Carrying value Cost / Accumulated Carrying value Valuation depreciation Valuation depreciation Land and buildings 10,627,466 (1,338,162) 9,289,304 9,420,236 (1,176,258) 8,243,978 Infrastructure 2,834,928 (907,930) 1,926,998 2,460,411 (720,588) 1,739,823 Community assets 539,817 (178,224) 361,593 470,441 (153,939) 316,502 Other property, plant and 8,687,427 (492,484) 8,194,943 5,526,937 (444,238) 5,082,699 equipment Heritage assets 99,268 (21,381) 77,887 98,085 (20,180) 77,905 Total 22,788,906 (2,938,181) 19,850,725 17,976,110 (2,515,203) 15,460,907

28471 285 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 CityCity of of Johannesburg JohannesburgCity of Johannesburg Metropolitan Metropolitan Metropolitan Municipality Municipality Municipality GroupGroup Annual Annual Financial FinancialGroup NotesStatements Statements Annual Financial tofor for the thethe year year Statements endedGroup ended 30 30 for June June the A 2009year nnual2009 ended 30Financial June 2009 Statements NotesNotes to to the the NotesGroup Group to A A nnualthennual Group Financial Financial Annual Statements Statements Financial Statements Figures in Rand thousand FiguresFigures in in Rand Rand thousand thousandFigures in Rand thousand

15. PROPERTY, PLANT AND EQUIPMENT (continued) 1515. . PROPERTY,PROPERTY, PLANT PLANT15. PROPERTY, AND AND EQUIPMENT EQUIPMENT PLANT (continued) (continued)AND EQUIPMENT (continued)

ReconciliationReconciliation of of property propertyReconciliationReconciliation, ,plant plant and and of propertyequipment equipment of property, plant - -GROUP GROUP and, plant equipment - -2009 2009 and equipment - GROUP - 2009- GROUP - 2009

OpeningOpening AdditionsAdditionsOpening FoundsFoundsOpeningAdditions DisposalsDisposalsAdditionsFounds TransfersTransfersDisposalsFoundsDepreciationDepreciationTransfersDisposalsImpairmentImpairmentDepreciationTransfersTotalTotalImpairmentDepreciationTotal Impairment Total BalanceBalance Balance Balance LandLand and and buildings buildings LandLand and buildingsand buildings 8,849,1998,849,199 224,711224,7118,849,199 437,9768,849,199437,976224,711 (29,416)(29,416)437,976224,711 622,561622,561(29,416)437,976(147,109)(147,109)622,561(29,416)(21,832)(21,832)(147,109)622,5619,936,0909,936,090(21,832) (147,109)9,936,090 (21,832) 9,936,090 InfrastructureInfrastructure InfrastructureInfrastructure 6,453,3966,453,396 232,522232,5226,453,396 6,453,396232,522- - (22,420)(22,420)232,522- 2,601,8312,601,831(22,420) (273,931)(273,931)- 2,601,831(22,420)(4,249)(4,249)(273,931)2,601,8318,987,1498,987,149(4,249) (273,931)8,987,149 (4,249) 8,987,149 CommunityCommunity assets assets Community assets 316,677316,677 35,18835,188316,677 35,188- - - - - 33,86233,862 - (23,817)(23,817)33,862 (142)(142)(23,817) 361,768361,768(142) 361,768 OtherOther property, property, plant plant Otherand andCommunity equipment equipmentproperty, plant assets and equipment 8,650,9158,650,915 5,871,1805,871,1808,650,915 316,6775,871,180368368 (13,612)(13,612)35,188368(3,388,368)(3,388,368)(13,612) (184,005)(184,005)- (3,388,368) (5,246)(5,246)-(184,005)10,931,23210,931,23233,862(5,246) (23,817)10,931,232 (142) 361,768 SpecialisedSpecialised vehicles vehiclesSpecialisedOther property, vehicles plant and equipment247,807247,807 9,8909,890247,807 8,650,915-9,890- (5,221)(5,221)5,871,180- 1313(5,221)368(40,399)(40,399) 13(13,612) (40,399)- - (3,388,368)212,090212,090 - (184,005)212,090 (5,246) 10,931,232 HeritageHeritage assets assets HeritageSpecialised assets vehicles 79,92179,921 1779,92117 247,807- - 17 (36)(36)9,890- - - (36) - - - -(5,221) - - - 79,90279,90213 - (40,399)79,902 - 212,090 Heritage assets 24,597,91524,597,915 6,373,5086,373,50824,597,915 438,344438,3446,373,50879,921 (70,705)(70,705)438,34417(130,101)(130,101)(70,705) (669,261)(669,261)- (130,101) (31,469)(36)(31,469)(669,261)30,508,23130,508,231(31,469)- 30,508,231- - 79,902 24,597,915 6,373,508 438,344 (70,705) (130,101) (669,261) (31,469) 30,508,231 ReconciliationReconciliation of of property propertyReconciliation, ,plant plant and and of propertyequipment equipment, plant - -GROUP GROUP and equipment - -2008 2008 - GROUP - 2008

Reconciliation of property, OpeningplantOpening and equipmentAdditionsAdditionsOpening - GROUPDisposalsDisposalsAdditions - 2008 FoundsFoundsDisposals TransfersTransfersFoundsDepreciationDepreciationTransfersImpairmentImpairmentDepreciation TotalTotalImpairment Total BalanceBalance Balance LandLand and and buildings buildings Land and buildings 8,891,0168,891,016 61,10861,1088,891,016 Opening(6,868)(6,868)61,108 50,621Additions50,621(6,868) 31,51931,519Disposals50,621 (152,975)(152,975)31,519Founds(25,222)(25,222)(152,975)Transfers8,849,1998,849,199(25,222)Depreciation8,849,199Impairment Total InfrastructureInfrastructure Infrastructure 5,811,3945,811,394 363,876363,8765,811,394 Balance(126)(126)363,876 88(126) 557,992557,992 8 (275,885)(275,885)557,992 (3,863)(3,863)(275,885)6,453,3966,453,396(3,863) 6,453,396 CommunityCommunity assets assets CommunityLand and assets buildings 335,285335,285 8,5018,501335,285 8,891,01618,5011 61,108- - 1 173173 (6,868)- (23,054)(23,054)17350,621(4,229)(4,229)(23,054) 31,519316,677316,677(4,229) (152,975)316,677 (25,222) 8,849,199 OtherOther property, property, plant plant Otherand and equipment equipmentproperty, plant and equipment 4,592,5134,592,513 4,937,6414,937,6414,592,513 (13,386)(13,386)4,937,641 2,6992,699(13,386) (616,420)(616,420)2,699 (240,175)(240,175)(616,420) (11,957)(11,957)(240,175)8,650,9158,650,915(11,957) 8,650,915 SpecialisedSpecialised vehicles vehiclesSpecialisedInfrastructure vehicles 284,508284,508 5,8775,877284,508 5,811,394(3,650)(3,650)5,877 363,876(3,650)- - - - (126)- (38,928)(38,928) - 8 (38,928)- - 557,992247,807247,807 - (275,885)247,807 (3,863) 6,453,396 HeritageHeritage assets assets HeritageCommunity assets assets 95,99395,993 55555595,993 335,285(558)(558)555 - -8,501(558) (3)(3) - 1 (46)(46) (3) (16,020)(16,020)- (46) 79,92179,921173(16,020) (23,054)79,921 (4,229) 316,677 Other property, plant and equipment 4,592,513 4,937,641 (13,386) 2,699 (616,420) (240,175) (11,957) 8,650,915 20,010,70920,010,709 5,377,5585,377,55820,010,709 (24,587)(24,587)5,377,558 53,32853,328(24,587) (26,739)(26,739)53,328 (731,063)(731,063)(26,739) (61,291)(61,291)(731,063)24,597,91524,597,915(61,291) 24,597,915 Specialised vehicles 284,508 5,877 (3,650) - - (38,928) - 247,807 Heritage assets 95,993 555 (558) - (3) (46) (16,020) 79,921 20,010,709 5,377,558 (24,587) 53,328 (26,739) (731,063) (61,291) 24,597,915

7272 72

72

284 285 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 City of JohannesburgCity of Johannesburg Metropolitan Metropolitan Municipality Municipality Group Annual GroupFinancialNotes Annual Statements Financial to forthe Statements the yearGroup ended for the 30 year AJunennual ended 2009 30 JuneFinancial 2009 Statements Notes to Notesthe Group to the A nnualGroup Financial Annual Financial Statements Statements Figures in Rand thousand

Figures in RandFigures thousand in Rand thousand 15. PROPERTY, PLANT AND EQUIPMENT (continued) 15. PROPERTY,15. PLANTPROPERTY, AND EQUIPMENTPLANT AND (continued)EQUIPMENT (continued) Reconciliation of property, plant and equipment - CJMM - 2009 ReconciliationReconciliation of property, plant of property and equipment, plant and - CJMM equipment - 2009 - CJMM - 2009 Opening Additions Founds Disposals Transfers Depreciation Impairment Total Opening OpeningAdditions AdditionsFounds FoundsDisposals DisposalsTransfers DepreciationTransfers DepreciationImpairment ImpairmentTotal Total Balance Balance Balance Land and buildingsLand andLand buildings and buildings 8,243,978 8,243,978206,310 8,243,978206,310437,976 437,976(23,850)206,310 (23,850)537,789437,976537,789(91,067) (23,850)(91,067)(21,832) 537,7899,289,304(21,832) 9,289,304(91,067) (21,832) 9,289,304 Infrastructure InfrastructureInfrastructure 1,739,823 1,739,82376,238 1,739,82376,238 - 76,238- - 252,700- 252,700(137,514)- (137,514)(4,249)- 252,7001,926,998(4,249) 1,926,998(137,514) (4,249) 1,926,998 Community assetsCommunityCommunity assets assets 316,502 316,50235,188 35,188316,502- 35,188- - 33,862- -33,862(23,817) (23,817)- (142) 33,862361,593(142) 361,593(23,817) (142) 361,593 Other property,Other plant Otherproperty, and equipment property, plant and plant equipment and equipment5,082,699 5,082,6993,987,248 3,987,2485,082,699227 3,987,248(3,137)227 (823,176)(3,137) 227(823,176)(43,968) (3,137)(43,968)(4,950) (823,176)8,194,943(4,950) 8,194,943(43,968) (4,950) 8,194,943 Heritage assetsHeritage assets 77,905 77,90518 18 - (36)- (36)- - - - - 77,887- 77,887 Heritage assets 77,905 18 - (36) - - - 77,887 15,460,907 15,460,9074,305,002 4,305,002438,203 438,203(27,023) (27,023)1,175 (296,366)1,175 (296,366)(31,173) 19,850,725(31,173) 19,850,725 15,460,907 4,305,002 438,203 (27,023) 1,175 (296,366) (31,173) 19,850,725 ReconciliationReconciliation of property, plant of property and equipment, plant and - CJMM equipment - 2008 - CJMM - 2008 Reconciliation of property, plant and equipment - CJMM - 2008 Opening OpeningAdditions AdditionsDisposals DisposalsFounds FoundsTransfers DepreciationTransfers DepreciationImpairment ImpairmentTotal Total Balance Balance Land and buildingsLand and buildings 8,279,667 8,279,66742,945 Opening42,945(6,868) Additions(6,868)50,621 50,621Disposals1,234 (98,399)1,234Founds(98,399)(25,222)Transfers8,243,978(25,222) Depreciation8,243,978 Impairment Total Infrastructure Infrastructure 1,745,562 1,745,56251,649 Balance51,649(8) (8)8 81,4118 (134,936)81,411 (134,936)(3,863) 1,739,823(3,863) 1,739,823 Community assetsCommunityLand assetsand buildings 335,066 335,0668,501 8,279,6678,5011 42,9451 - 173- (6,868)(23,010)173 50,621(23,010)(4,229) 1,234316,502(4,229) 316,502(98,399) (25,222) 8,243,978 Other property,Other plant Infrastructureproperty, and equipment plant and equipment 2,009,098 2,009,0983,314,901 3,314,9011,745,562(9,176) (9,176)2,69951,649 (86,295)2,699 (8)(86,295)(136,999) (136,999)(11,529)8 81,4115,082,699(11,529) 5,082,699(134,936) (3,863) 1,739,823 Heritage assetsHeritageCommunity assets assets 93,977 93,977555 335,066555(558) (558)8,501- -(3) 1 (3)(46) (16,020)- (46) (16,020)77,905173 77,905(23,010) (4,229) 316,502 Other property, plant and equipment12,463,370 12,463,3703,418,551 3,418,5512,009,098(16,609) (16,609)3,314,90153,328 53,328(3,480)(9,176)(393,390)(3,480) 2,699(393,390)(60,863) 15,460,907(86,295)(60,863) 15,460,907(136,999) (11,529) 5,082,699 Heritage assets 93,977 555 (558) - (3) (46) (16,020) 77,905 12,463,370 3,418,551 (16,609) 53,328 (3,480) (393,390) (60,863) 15,460,907

73 73

73

286 287 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

15. PROPERTY, PLANT AND EQUIPMENT (continued)

The following leased assets are included in Property, Plant and Equipment listed above

GROUP 2009 2008 Cost / Accumulated Carrying value Cost / Accumulated Carrying value Valuation depreciation Valuation depreciation Soccer city 2,179,146 - 2,179,146 - - - Leasehold property 20,623 (14,573) 6,050 19,698 (11,269) 8,429 Motor vehicles 1,485 (1,226) 259 2,702 (1,597) 1,105 Office equipment 112,128 (66,130) 45,998 78,540 (43,630) 34,910 Total 2,313,382 (81,929) 2,231,453 100,940 (56,496) 44,444

CJMM 2009 2008 Cost / Accumulated Carrying value Cost / Accumulated Carrying value Valuation depreciation Valuation depreciation Soccer city 2,179,146 - 2,179,146 - - - Office equipment 95,033 (56,334) 38,699 61,197 (35,704) 25,493 Total 2,274,179 (56,334) 2,217,845 61,197 (35,704) 25,493

Refer to note 4 for detail on the finance lease obligations.

Methods and assumptions used

The Johannesburg Zoo recognises animals at R1, not at fair value. Market-determined prices or values are not available due to the lack of a market for the majority of the animals, because they are not commodities, as well as restrictions on trade of exotic animals, which preclude the determination of a fair value. Alternative estimates of fair value for the animals will be influenced by the age, health, bloodline and other related issues which are arbitrary in nature. Alternative estimates of fair value are not considered to be reliable due to the number of variables involved and the arbitrary nature of the variables. Therefore, on the basis that many species cannot be valued and that reliable values cannot be obtained for other species, it was considered that any assessment of value would be misleading to the user of the annual financial statements. The majority of the Zoo's animals are received as donations and transfers from other similar institutions for no consideration, or from procreation. These assets are recorded at a nominal amount, and therefore the Zoo’s animals are not depreciated.

286 28774 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

16. INTANGIBLE ASSETS

GROUP 2009 2008 Cost / Accumulated Carrying value Cost / Accumulated Carrying value Valuation amortisation Valuation amortisation Additional capacity rights 119,521 (10,547) 108,974 80,149 (8,580) 71,569 Servitudes 901 - 901 901 - 901 Computer software, 1,209 (654) 555 816 (398) 418 internally generated Computer software 564,550 (330,624) 233,926 438,004 (275,028) 162,976 Total 686,181 (341,825) 344,356 519,870 (284,006) 235,864

CJMM 2009 2008 Cost / Accumulated Carrying value Cost / Accumulated Carrying value Valuation amortisation Valuation amortisation Computer software 248,238 (194,056) 54,182 239,223 (169,817) 69,406

28875 289 City of Johannesburg Metropolitan Municipality City of JohannesburgCityGroup of Annual Johannesburg Financial Metropolitan Statements Metropolitan Municipalityfor the year Municipalityended 30 June 2009 Group Annual GroupFinancial Annual Statements Financial for Statements the year ended for the 30 yearJune ended 2009 30 June 2009 Notes to the Group Annual Financial Statements Notes to Notesthe Group to the A nnualGroup Financial Annual Financial Statements Statements

Figures in RandFigures thousand in inRand Rand thousand thousand

16. INTANGIBLE16.. ASSETSINTANGIBLEINTANGIBLE (continued) ASSETS ASSETS (continued) (continued) ReconciliationReconciliation of intangible assetsof intangible - GROUP assets - 2009 - GROUP - 2009 Reconciliation of intangible assets - GROUP - 2009 Opening OpeningAdditions AdditionsDisposals DisposalsTransfers AmortisationTransfers AmortisationTotal Total Balance Balance Opening Additions Disposals Transfers Amortisation Total Additional capacityAdditional rights capacity rights 71,569 71,56939,372 39,372 - - - (1,967)- 108,974(1,967) 108,974 Servitudes Servitudes 901 901 - Balance------901- 901 Computer software,ComputerAdditional internally software, capacity generated internally rights generated 418 418392 39271,569- - - 39,372 (255)- (255)555- 555 - (1,967) 108,974 Computer softwareComputerServitudes software 162,976 162,97656,692 56,692(5) 901 70,056(5) 70,056(55,793)- (55,793)233,926- 233,926 - - 901 Computer software, internally generated 235,864 235,86496,456 96,456(5) 418 70,056(5) 39270,056(58,015) (58,015)344,356- 344,356 - (255) 555 Computer software 162,976 56,692 (5) 70,056 (55,793) 233,926 ReconciliationReconciliation of intangible assetsof intangible - GROUP assets - 2008 - GROUP - 2008 235,864 96,456 (5) 70,056 (58,015) 344,356 Opening OpeningAdditions AdditionsDisposals DisposalsTransfers AmortisationTransfers AmortisationImpairment ImpairmentTotal Total Reconciliation of intangible assets - GROUPBalance - 2008 Balance Additional capacityAdditional rights capacity rights 73,536 73,536 - - - - - (1,967)- (1,967)- 71,569- 71,569 Servitudes Servitudes 901 901 ------901- 901 Computer software,Computer internally software, generated internally generated 654 65427 Opening27 - Additions- - (263)Disposals- (263)-Transfers 418- Amortisation418 Impairment Total Computer softwareComputer software 200,290 200,29013,943 Balance13,943(479) 18,239(479) 18,239(69,012) (69,012)(5) 162,976(5) 162,976 Additional capacity rights 275,381 275,38113,970 13,97073,536(479) 18,239(479) - 18,239(71,242) (71,242)- (5) 235,864(5)- 235,864(1,967) - 71,569 Servitudes 901 - - - - - 901 ReconciliationReconciliation Computerof intangible software, assetsof intangible - CJMM internally assets - 2009 -generated CJMM - 2009 654 27 - - (263) - 418 Computer software 200,290 13,943 (479) 18,239 (69,012) (5) 162,976 Opening OpeningAdditions AdditionsDisposals AmortisationDisposals AmortisationTotal Total Balance275,381Balance 13,970 (479) 18,239 (71,242) (5) 235,864 Computer softwareComputer software 69,406 69,4069,019 9,019(1) (24,242)(1) (24,242)54,182 54,182 Reconciliation of intangible assets - CJMM - 2009 ReconciliationReconciliation of intangible assetsof intangible - CJMM assets - 2008 - CJMM - 2008

Opening OpeningAdditions AdditionsTransfers AmortisationTransfersOpeningAmortisationImpairment AdditionsImpairmentTotal DisposalsTotal Amortisation Total Balance Balance Balance Computer softwareComputerComputer software software 104,754 104,75446 3,48046 (38,869)3,480 69,406(38,869)(5) 9,01969,406(5) 69,406 (1) (24,242) 54,182

Reconciliation of intangible assets - CJMM - 2008

Opening Additions Transfers Amortisation Impairment Total 76 76 Balance Computer software 104,754 46 3,480 (38,869) (5) 69,406

76

288 289 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

17. INVESTMENTS IN MUNICIPAL ENTITIES

Name of entity % holding % holding Carrying Carrying 2009 2008 amount 2009 amount 2008 City of Johannesburg Property Company (Pty) Ltd 100.00 % 100.00 % 6,236 6,236 City Power Johannesburg (Pty) Ltd 100.00 % 100.00 % 112,466 112,466 Johannesburg City Parks * 100.00 % 100.00 % 28,098 28,098 Johannesburg Development Agency (Pty) Ltd 100.00 % 100.00 % 87,873 87,873 Johannesburg Metropolitan Bus Services (Pty) Ltd 100.00 % 100.00 % 54,774 54,774 Johannesburg Roads Agency (Pty) Ltd 100.00 % 100.00 % 39,065 39,065 Johannesburg Social Housing Company (Pty) Ltd * 100.00 % 100.00 % - - Johannesburg Tourism Company * 100.00 % 100.00 % 5,585 4,166 Johannesburg Water (Pty) Ltd 100.00 % 100.00 % 1 1 Metropolitan Trading Company (Pty) Ltd 100.00 % 100.00 % 97,971 97,971 Pikitup Johannesburg (Pty) Ltd * 100.00 % 100.00 % - - Roodepoort City Theatre * 100.00 % 100.00 % 1,784 2,179 The Johannesburg Civic Theatre (Pty) Ltd * 100.00 % 100.00 % - - The Johannesburg Fresh Produce Market (Pty) Ltd 100.00 % 100.00 % 32,000 38,000 The Johannesburg Zoo * 100.00 % 100.00 % 1,860 2,847 467,713 473,676

* Nominal amount held

The City of Johannesburg Metropolitan Municipality holds 100% of the shares in the municipal entities. There was no changes in the shareholding from 30 June 2008 to 30 June 2009.

18. LOANS TO MUNICIPAL ENTITIES

Shareholder loans

City Power Johannesburg (Pty) Ltd - - 624,793 624,793 Terms and conditions: Rate = 16% Maturity = No set date for repayment Johannesburg Water (Pty) Ltd - - 584,928 649,923 Terms and conditions: Rate = 15% Maturity = No set date for repayment - - 1,209,721 1,274,716

290 291

77 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

18. LOANS TO MUNICIPAL ENTITIES (continued)

Conduit and additional loans

City of Johannesburg Property - - 6,862 3,412 Company (Pty) Ltd Terms and conditions: Rate = 12.21% Maturity = 30 June 2011 City Power Johannesburg (Pty) Ltd - - 2,544,585 2,406,557 Terms and conditions: Rate = 10.20% to 17.50% Maturity = 30 June 2017 Johannesburg Metropolitan Bus - - 120,277 126,046 Services (Pty) Ltd Terms and conditions: Rate = 9.00% Maturity = 30 June 2017 Johannesburg Roads Agency (Pty) Ltd - - 4,050 7,348 Terms and conditions: Rate = 12.09% Maturity = 31 July 2010 Johannesburg Water (Pty) Ltd - - 1,707,651 1,367,505 Terms and conditions: Rate = 10.20% to 17.50% Maturity = 30 June 2016 Pikitup Johannesburg (Pty) Ltd - - 104,943 103,882 Terms and conditions: Rate = 10.20% to 17.50% Maturity = 30 June 2016 The Johannesburg Fresh Produce - - 214,445 207,038 Market (Pty) Ltd Terms and conditions: Rate = 10.20% to 17.50% Maturity = 30 June 2016 - - 4,702,813 4,221,788 - - 5,912,534 5,496,504

Non-current assets - - 5,227,632 5,005,158 Current assets - - 684,902 491,346 - - 5,912,534 5,496,504

All loans to Municipal Entities are repayable as per terms and conditions reflected above.

290 29178 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

18. LOANS TO MUNICIPAL ENTITIES (continued)

Credit quality of loans to group companies

The credit quality of municipal entities is not determined on an individual basis. The credit rating is done at a group level.

Credit rating A+ - - 6,199,095 5,787,063

Fair value of loans to and from group companies

The carrying amount is a reasonable approximation of the fair value.

Reconciliation of provision for impairment of loans to group companies

Opening balance - - 273,965 287,824 Reversal - - (22,693) (13,859) - - 251,272 273,965

The creation and release of provision for impaired receivables have been included in operating expenses in the statement of financial performance. No loans are currently past due, all loan repayments were done in terms of the loan agreements.

Note 43 details the loans which have been impaired.

19. INVESTMENT IN JOINT VENTURES

% holding % holding Carrying Carrying 2009 2008 amount 2009 amount 2008 Joshco Madulamoho Joint Venture 55.00 % 55.00 % 31,326 15,991

Fair value

The fair value of the investment in the joint venture is not disclosed because the fair value cannot be measured reliably.

29279 293 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

20. INVESTMENTS IN ASSOCIATES

% holding % holding Carrying Carrying amount amount 2009 2008 2009 2008

Greater Newtown Development Company (Pty) Ltd 23.00 % 23.00 % - - Constitutional Hill Development Company (Pty) Ltd 13.00 % 13.00 % - - - -

The carrying amounts of Associates are shown net of impairment losses.

Greater Newtown Development Company (Pty) Ltd and Constitutional Hill Development Company (Pty) Ltd

The assignment of shares agreement between Johannesburg Development Agency (Pty) Ltd and City of Johannesburg Metropolitan Municipality was signed on 30 October 2007. The shareholding in the two development companies was assigned back to the City of Johannesburg Metropolitan Municipality and their relevant investments have been fully impaired.

Associates with different reporting dates

The financial year end of Greater Newtown Development Company (Pty) Ltd and Constitutional Hill Development Company (Pty) Ltd is 31 March.

292 29380 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

21. HELD TO MATURITY INVESTMENTS

Held to maturity investments

Other financial assets 2,783,830 2,377,320 2,783,830 2,377,320

Non-current assets 1,783,830 1,800,008 1,783,830 1,800,008 Current assets 1,000,000 577,312 1,000,000 577,312 2,783,830 2,377,320 2,783,830 2,377,320

Amortised Market Values Cost ABSA Investment 116,243 116,243 Maturity - 20.12.2012 SMB Long-term Investment 17,942 17,942 Maturity - 31.08.2013 Investment: RMB - E 39,124 39,124 Maturity - 30.11.2014 Investment: RMB - E 193,327 193,327 Maturity - 31.12.2012 Investment: RMB R10 41,183 41,183 Maturity - 30.11.2014 STD Bank: (2496) 34,264 34,264 Maturity - 30.11.2011 INCA & STD Bank Red 14,276 14,276 Maturity - 30.06.2011 ABSA Sinking Fund 20 2,297,282 1,714,724 Maturity - 05.06.2018 Fixed Deposit - RMB 30,189 30,189 Maturity - 30.11.2014 2,783,830 2,201,272

* The held-to-maturity investments are ring-fenced for the repayment of non-current liabilities

The total amount of change in fair value, estimated using discounted cash flow analysis.

The total investments pledged as collateral for CJMM Bonds

Amortised Market Values Cost

Bond Redemption Fund 2,297,282 1,714,724 Maturity - 05.06.2023

The investments pledged as collateral cannot be sold until the related liability is settled in full.

29481 295 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

21. HELD TO MATURITY INVESTMENTS (continued)

Amortised Market Values Cost

RMB R95m 39,124 39,124 Maturity - 30.11.2014 RMB R248m 193,327 193,327 Maturity - 31.12.2012 RMB R100m 41,183 41,183 Maturity - 30.11.2014 RMB - Security Deposit 30,189 30,189 Maturity - 30.11.2014 303,823 303,823

There were no gains or losses realised on the disposal of held to maturity financial assets in 2009 and 2008, as all the financial assets were disposed of at their redemption date.

Credit quality of financial assets

The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to external credit ratings (if available) or to historical information about counterparty default rates.

Held to maturity instruments

Amortised Market Values Cost

ABSA Investment 116,243 116,243 Rating - (AAA) SCMB Long-term Investment 17,942 17,942 Rating - (A-) Investment: RMB - E 39,124 39,124 Rating - (AAA) Investment: RMB - E 193,327 193,327 Rating - (AAA) Investment: RMB R10 41,183 41,183 Rating - (AAA) STD Bank: (2496) 34,264 34,264 Rating - (A-) INCA & STD Bank Red 14,276 14,276 Rating - (A-) ABSA Sinking Fund 20 2,297,282 1,714,724 Rating - (BBB+) Fixed Deposit - RMB 30,189 30,189 Rating - (AAA) 2,783,830 2,201,272

294 29582 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

21. HELD TO MATURITY INVESTMENTS (continued)

Loans and receivables

Amortised Market Values Cost

Fixed Deposits STD Bank 1,027 1,027 Rating - (F1+) Call Deposits ABSA 377,745 377,745 Rating - (F1+) Call Deposits RMB 2,275 2,275 Rating - (F1+) Call Deposits INVESTEC 56,105 56,105 Rating - (F1+) Call Deposits NEDCOR 2,030 2,030 Rating - (F1+) Call Deposits CITY BANK 1,202 1,202 Rating - (F1+) Call Deposits ABN AMRO 1,349 1,349 Rating - (F1+) Call Deposits DEUTSCHE BK 1,500 1,500 Rating - (F1+) Call Deposits TCTA 1,000 1,000 Rating - (F1+) Call Deposits LANDBANK 50 50 Rating - (F1+) Calyon SA 1,380 1,380 Rating - (F1+) Stanlib Call Investment 1,928 1,928 Rating - (F1+) 447,591 447,591

29683 297 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

22. FINANCIAL ASSETS BY CATEGORY

The accounting policies for financial instruments have been applied to the line items below:

GROUP - 2009

Loans and Fair value Held to Total receivables through profit maturity or loss

Non-Current Assets Held to maturity investments - - 1,783,830 1,783,830 Non-current receivables 131,617 - - 131,617

Current Assets Held to maturity investments - - 1,000,000 1,000,000 Other debtors 1,386,821 28,326 - 1,415,147 Consumer debtors 2,263,950 - - 2,263,950 Call investment deposits 466,104 - - 466,104 Bank balances and cash 231,361 - - 231,361 4,479,853 28,326 2,783,830 7,292,009

GROUP - 2008

Loans and Fair value Held to Total receivables through profit maturity or loss

Non-Current Assets Held to maturity investments - - 1,800,008 1,800,008 Non-current receivables 55,966 - - 55,966

Current Assets Held to maturity investments - - 577,312 577,312 Other debtors 1,223,019 22,783 - 1,245,802 Consumer debtors 2,152,956 - - 2,152,956 Call investment deposits 920,467 - - 920,467 Bank balances and cash 469,879 - - 469,879 4,822,287 22,783 2,377,320 7,222,390

296 29784 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

22. FINANCIAL ASSETS BY CATEGORY (continued)

CJMM - 2009

Loans and Fair value Held to Total receivables through profit maturity or loss

Non-Current Assets Loans to Municipal Entities 5,227,632 - - 5,227,632 Held to maturity investments - - 1,783,830 1,783,830 Non-current receivables 131,617 - - 131,617

Current Assets Loans to Municipal Entities 684,902 - - 684,902 Held to maturity investments - - 1,000,000 1,000,000 Other debtors 1,411,669 28,326 - 1,439,995 Consumer debtors 436,645 - - 436,645 Call investment deposits 447,591 - - 447,591 Bank balances and cash 201,698 - - 201,698 8,541,754 28,326 2,783,830 11,353,910

CJMM - 2008

Loans and Fair value Held to Total receivables through profit maturity or loss

Non-Current Assets Loans to Municipal Entities 5,005,158 - - 5,005,158 Held to maturity investments - - 1,800,008 1,800,008 Non-current receivables 55,966 - - 55,966

Current Assets Loans to Municipal Entities 491,346 - - 491,346 Held to maturity investments - - 577,312 577,312 Other debtors 1,063,249 22,783 - 1,086,032 Consumer debtors 538,383 - - 538,383 Call investment deposits 905,955 - - 905,955 Bank balances and cash 441,171 - - 441,171 8,501,228 22,783 2,377,320 10,901,331

29885 299 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

23. NON-CURRENT RECEIVABLES

Long-term receivables Fleet Africa * 34,514 31,438 34,514 31,438 Housing Selling scheme loans ** 40,459 18,810 40,459 18,810 Other loans and receivables 97,103 24,528 97,103 24,528 Subtotal 172,076 74,776 172,076 74,776 Loans and receivables (impairments) (40,459) (18,810) (40,459) (18,810) 131,617 55,966 131,617 55,966

Fleet Africa *

CJMM has entered into an agreement with Super Group Ltd in which management of the vehicle fleet is outsourced. The balance represents the agreed value of the vehicles transferred to Super Group Ltd, adjusted by any profits or losses on disposals, and interest earned. The amounts is invested in a ring-fenced banking account.

Housing selling scheme loans **

Represents outstanding balance owing on rental stock sold.

298 29986 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

24. BIOLOGICAL ASSETS - HELD FOR RESALE

GROUP 2009 2008 Cost / Accumulated Carrying value Cost / Accumulated Carrying value Valuation depreciation Valuation depreciation Stock held for sale 3,400 - 3,400 3,434 - 3,434

Reconciliation of biological assets - GROUP - 2009

Opening Decreases dueGains or losses Impairment Total Balance to harvest / arising from reversal sales physical changes Stock held for sale 3,434 (1,874) (373) 2,213 3,400

Reconciliation of biological assets - GROUP - 2008

Opening Decreases dueGains or losses Impairment Total Balance to harvest / arising from reversal sales physical changes Stock held for sale 5,010 (1,537) (3,060) 3,021 3,434

Non – Financial information

Quantities of each biological asset Bulls 74 102 - - Calves 74 35 - - Weaners 568 541 - - 716 678 - -

Methods and assumptions used in determining fair value

The fair value of livestock is determined based on market prices of livestock of a similar age, breed, and genetic merit, sold on auction during that year.

25. INVENTORIES

Consumable stores 162,702 106,357 29,350 33,027 Spare parts 13,994 12,111 - - Water 5,988 5,682 - - Subtotal 182,684 124,150 29,350 33,027 Inventories (write-downs) (11,287) (9,056) (220) (1,379) 171,397 115,094 29,130 31,648

Inventory has been written off during the year, due to theft, obsolete stock and damages.

30087 301 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

26. OTHER DEBTORS

Prepayments 47,345 22,346 43,248 12,976 Sundry debtor 523,947 704,819 353,804 470,361 Insurance debtor 239,864 256,553 230,211 236,799 Housing debtors 556,340 236,149 556,340 236,149 Fruitless and wasteful expenditure to 19,325 3,152 19,325 3,152 be investigated Derivative trading asset 28,326 22,783 28,326 22,783 Related party debtors 50 - - 208,741 103,812 1,415,147 1,245,802 1,439,995 1,086,032

27. CONSUMER DEBTORS

Gross Balances Rates 2,263,286 2,510,293 2,263,286 2,510,293 Electricity 1,799,902 1,900,380 - - Water 3,633,230 4,127,422 - - Refuse 462,898 480,037 325,459 402,337 Housing rental 221,473 412,602 221,473 412,602 Total 8,380,789 9,430,734 2,810,218 3,325,232

Less impairments Rates (1,889,893) (2,067,486) (1,889,893) (2,067,486) Electricity (930,988) (1,087,014) - - Water (2,777,728) (3,354,128) - - Refuse (345,438) (386,522) (310,888) (336,735) Housing rental (172,792) (382,628) (172,792) (382,628) Total (6,116,839) (7,277,778) (2,373,573) (2,786,849)

Net Balance Rates 373,393 442,807 373,393 442,807 Electricity 868,914 813,366 - - Water 855,502 773,294 - - Refuse 117,460 93,515 14,571 65,602 Housing rental 48,681 29,974 48,681 29,974 Total 2,263,950 2,152,956 436,645 538,383

Rates Current (0 -30 days) 273,754 381,241 273,754 381,241 31 - 60 days 144,456 124,501 144,456 124,501 61 - 90 days 114,153 98,206 114,153 98,206 91 - 120 days 119,427 74,962 119,427 74,962 121 - 365 days 500,584 473,210 500,584 473,210 > 365 days 1,110,912 1,358,173 1,110,912 1,358,173 Total 2,263,286 2,510,293 2,263,286 2,510,293

300 30188 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

Electricity Current (0 -30 days) 664,902 578,818 - - 31 - 60 days 88,306 48,456 - - 61 - 90 days 62,735 57,126 - - 91 - 120 days 67,613 48,949 - - 121 - 365 days 309,184 36,544 - - > 365 days 607,162 1,130,487 - - Total 1,799,902 1,900,380 - -

Water Current (0 -30 days) 435,591 13,271 - - 31 - 60 days 204,383 187,676 - - 61 - 90 days 148,396 134,210 - - 91 - 120 days 128,262 117,163 - - 121 - 365 days 769,468 644,064 - - > 365 days 1,947,130 3,031,038 - - Total 3,633,230 4,127,422 - -

Refuse Current (0 -30 days) 101,175 44,808 4,902 28,314 31 - 60 days 32,167 31,495 25,873 16,181 61 - 90 days 21,464 18,224 17,897 14,027 91 - 120 days 19,225 17,273 16,370 13,274 121 - 365 days 100,156 72,735 88,698 47,997 > 365 days 188,711 295,502 171,719 282,544 Total 462,898 480,037 325,459 402,337

Housing rental Current (0 -30 days) 5,783 8,428 5,783 8,428 31 - 60 days 2,978 6,051 2,978 6,051 61 - 90 days 3,300 7,996 3,300 7,996 91 - 120 days 3,173 14,873 3,173 14,873 121 - 365 days 52,947 98,754 52,947 98,754 > 365 days 153,292 276,500 153,292 276,500 Total 221,473 412,602 221,473 412,602

30289 303 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

Credit quality of trade and other receivables

The credit quality of trade and other receivables that are neither past nor due nor impaired can be assessed by reference to the customer classification and historical information about counterparty default rates:

Consumers - Gross balances Current (0 -30 days) 517,069 355,681 129,969 238,888 31 - 60 days 310,582 248,318 99,649 67,326 61 - 90 days 218,841 177,762 72,539 54,235 91 - 120 days 202,807 165,122 70,745 56,347 121 - 365 days 1,206,507 1,238,248 395,810 616,506 > 365 days 3,086,370 4,306,002 933,913 1,021,319 Sub-total 5,542,176 6,491,133 1,702,625 2,054,621 Less impairments (4,417,119) (4,910,068) (1,463,806) (1,773,960) Total 1,125,057 1,581,065 238,819 280,661

Consumers - Past due and impaired Current (0 -30 days) 8,095 21,977 8,095 20,533 31 - 60 days 86,297 44,549 86,297 41,632 61 - 90 days 67,642 36,356 67,642 34,906 91 - 120 days 196,524 122,162 66,643 97,373 121 - 365 days 1,176,393 756,374 378,474 603,046 > 365 days 2,882,168 3,928,650 856,655 976,470 Total 4,417,119 4,910,068 1,463,806 1,773,960

Consumers - Past due and not impaired Current (0 -30 days) 508,973 433,704 121,873 218,355 31 - 60 days 224,285 203,769 13,353 25,694 61 - 90 days 151,199 141,406 4,897 19,329 91 - 120 days 6,283 42,960 4,102 (41,026) 121 - 365 days 30,114 481,874 17,335 13,460 > 365 days 204,203 277,352 77,259 44,849 Total 1,125,057 1,581,065 238,819 280,661

302 30390 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

Industrial/ commercial Current (0 -30 days) 834,907 227,803 131,995 164,521 31 - 60 days 142,371 268,663 68,438 77,032 61 - 90 days 117,979 135,049 57,752 62,956 91 - 120 days 122,066 99,962 63,224 44,958 121 - 365 days 448,380 494,807 216,003 272,977 > 365 days 791,346 1,521,175 444,165 597,522 Sub-total 2,457,049 2,747,459 981,577 1,219,966 Less impairments (1,479,363) (2,246,169) (811,010) (975,875) Total 977,686 501,290 170,567 244,091

Industrial/ commercial - Past due and impaired Current (0 -30 days) 31,962 53,105 3,443 42,452 31 - 60 days 81,500 39,540 59,062 38,670 61 - 90 days 73,869 50,803 53,767 34,248 91 - 120 days 113,792 144,640 59,494 44,059 121 - 365 days 433,826 832,912 208,846 267,517 > 365 days 744,414 1,125,169 426,398 548,929 Total 1,479,363 2,246,169 811,010 975,875

Industrial/ commercial - Past due and not impaired Current (0 -30 days) 802,945 174,698 128,552 122,069 31 - 60 days 60,871 229,123 9,376 38,362 61 - 90 days 44,110 84,246 3,985 28,708 91 - 120 days 8,274 (44,678) 3,730 899 121 - 365 days 14,554 (338,105) 7,157 5,460 > 365 days 46,932 396,006 17,767 48,593 Total 977,686 501,290 170,567 244,091

30491 305 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

National and provincial government Current (0 -30 days) 129,231 7,410 22,474 12,614 31 - 60 days 19,336 17,998 5,220 2,375 61 - 90 days 13,229 11,043 5,061 3,038 91 - 120 days 12,825 9,467 4,999 1,804 121 - 365 days 77,451 33,811 30,416 6,977 > 365 days 129,492 112,413 57,846 23,837 Sub-total 381,564 192,142 126,016 50,645 Less impairments (220,357) (121,541) (98,757) (37,014) Total 161,207 70,601 27,259 13,631

National and provincial government - Past due and impaired Current (0 -30 days) 257 5,109 257 5,109 31 - 60 days 4,631 1,192 4,505 1,192 61 - 90 days 4,850 1,653 4,712 1,653 91 - 120 days 11,905 5,359 4,704 1,768 121 - 365 days 73,263 27,701 29,047 6,837 > 365 days 125,451 80,527 55,532 20,455 Total 220,357 121,541 98,757 37,014

National and provincial government - Past due and not impaired Current (0 -30 days) 128,974 2,301 22,217 7,505 31 - 60 days 14,705 16,806 715 1,183 61 - 90 days 8,379 9,390 349 1,385 91 - 120 days 920 4,108 295 36 121 - 365 days 4,188 6,110 1,369 140 > 365 days 4,041 31,886 2,314 3,382 Total 161,207 70,601 27,259 13,631

304 30592 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

Total Current (0 -30 days) 1,481,207 590,894 284,438 416,023 31 - 60 days 472,289 534,979 173,307 146,733 61 - 90 days 350,049 323,854 135,352 120,229 91 - 120 days 337,698 274,551 138,968 103,109 121 - 365 days 1,732,338 1,766,866 642,229 896,460 > 365 days 4,007,208 5,939,590 1,435,924 1,642,678 Sub-total 8,380,789 9,430,734 2,810,218 3,325,232 Less impairments (6,116,839) (7,277,778) (2,373,573) (2,786,849) 2,263,950 2,152,956 436,645 538,383

Reconciliation of impairments Balance at beginning of the year 7,277,778 7,344,915 2,786,849 3,309,299 Contributions to provision (560,041) 828,067 (42,627) 180,220 Impairments written off against (433,383) (833,513) (222,359) (441,333) provision Provision reversal (167,515) (61,691) (148,290) (261,337) Total 6,116,839 7,277,778 2,373,573 2,786,849

An adjustment to consumer debtors was made, transferring credit balances in the debtors’ book to sundry creditors. Group: R 625,301 million (2008: R 481,575. CJMM: R 524,856 million (2008: R 423,206 million). Refer note 7.

Unaccounted for water

Extensive investigative work performed prior to 2004 in order to inform the direction of the company turnaround strategy identified that the deemed consumption areas were largely responsible not only for the high outstanding debtors, but also the higher than benchmark unaccounted for water level. Although the level of unaccounted for water for the year under review is 36.6% (2008: 33.6%), the level in metered areas is approximately 21.2% (2008: 19.3%), which is well within accepted norms. The level for deemed consumption areas however, exceeds 83% (2008: 60%) The focus point of the initiative referred to as project Gcin'amanzi is expected to address the water loss issue in deemed consumption areas. Results have deteriorated as a result of project Gcin'amanzi being suspended in May 2008 due to a court ruling preventing further rollout of the project. An appeal was lodged by the Company and the matter was heard in the Supreme Court of Appeal in February 2009 and subsequently in the Constitutional Court in September 2009. The final ruling was announced by the Constitutional Court on the 8th of October 2009. The ruling was in favour of the Company and the project is likely to resume in January 2010.

The historic flat rate billing for variable consumption in deemed consumption areas impacts significantly on the level of unaccounted for water. Adjusting for this impact the revised unaccounted for water level is reduced from 36.6% to 24.4% (2008: reduced from 33.6% to 21.8%).

Electricity distribution losses

Distribution losses relate to unaccounted for electricity. Currently this cost arises after allowing for technical losses, of 9%. This cost arises from illegal connections to the electricity network, errors in billing and bridging of meters by consumers. The total cost of unaccounted electricity is R153 million (2008: R95 million).

30693 307 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

28. CALL INVESTMENT DEPOSITS

Call investment deposits 466,104 920,467 447,591 905,955

Call investment deposits that have been ring-fenced for following future expenditure Underwriting of COID reserve 49,200 49,200 49,200 49,200 Capital replacement reserve 85,186 104,162 85,186 104,162 Repayment of long-term liabilities 300,000 300,000 300,000 300,000 434,386 453,362 434,386 453,362

29. BANK BALANCES AND CASH

Refer to the supplementary information schedule for details on Bank accounts and balances.

Primary Bank Account ABSA Bank - Sandton Branch Account number - 4054394859

Cash and cash equivalents consist of :

Cash on hand 397 399 115 165 Bank balances 230,964 469,480 201,583 441,006 Bank overdraft (51,857) (51,887) - - 179,504 417,992 201,698 441,171

Current assets 231,361 469,879 201,698 441,171 Current liabilities (51,857) (51,887) - - 179,504 417,992 201,698 441,171

30. NON-CURRENT ASSETS HELD FOR SALE

Pikitup has a 50% ( 2008: 50%) unlisted investment in Fried Shelf 128 (Pty) Ltd.

The carrying amounts of associates are shown net of impairment losses. Refer below.

Associates with different reporting dates

The financial year-end of the associate is the last day of February. The year ends of the two entities are more than three months apart. The entity made adjustments to the accounts of the associate to bring the two year ends in line with each other.

Summary of groups interest in associate Cost of acquisition 32 32 Share in surplus / (deficit) (483) (260) Share in revaluation reserve 2,899 2,701 Elimination of inter company surplus (70) (83) 2,378 2,390

306 30794 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

31. PROPERTY RATES

Rates received

Residential 1,823,864 1,525,063 1,823,864 1,525,063 Commercial 1,491,365 1,667,120 1,491,365 1,667,120 State 15,770 133,980 15,770 133,980 Total Assessment Rates 3,330,999 3,326,163 3,330,999 3,326,163

Valuations

Residential 685,946,582 577,265,127 685,946,582 577,265,127

32. SERVICE CHARGES

Sale of electricity 5,491,207 4,133,027 63,818 37,738 Sale of water 2,253,715 2,112,070 25,398 24,946 Sewerage and sanitation charges 1,333,574 1,205,207 - - Refuse removal 685,792 437,312 437,820 277,797 Other service charges 88,158 102,188 52,571 63,708 Total service charges 9,852,446 7,989,804 579,607 404,189

33. GOVERNMENT GRANTS AND SUBSIDIES

Ambulance subsidy 73,513 64,633 73,513 64,633 Equitable share 3,100,573 2,579,342 3,100,573 2,579,342 Financial management grant 2,503 938 2,503 938 Social housing foundation grant 12,259 - - - Municipal infrastructure grant 468,779 130,092 468,779 130,092 Municipal system improvement grant 4,282 1,357 4,282 1,357 Provincial grants: Soccer city 2010 477,417 1,138,060 477,417 1,138,060 Gautrain 516 905 516 905 Confederations cup 17,582 - 17,582 - Provincial grants: capital projects 391,338 321,875 52,922 6,028 Provincial grants: operating projects 13,573 6,334 13,573 6,334 Provincial grants: top structure of 308,824 151,409 308,824 151,409 houses Provincial health subsidies 72,262 50,850 72,262 50,850 Total government grants and 4,943,421 4,445,795 4,592,746 4,129,948 subsidies

Ambulance subsidy

Current year receipts 73,513 64,633 73,513 64,633 Conditions met - transferred to revenue (73,513) (64,633) (73,513) (64,633) Conditions still to be met - - - - - transferred to liabilities

30895 309 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

Equitable share

Current year receipts 3,100,573 2,579,342 3,100,573 2,579,342 Conditions met - transferred to revenue (3,100,573) (2,579,342) (3,100,573) (2,579,342) Conditions still to be met - - - - - transferred to liabilities

This grant is used to subsidise the provision of basic services to indigent community members.

Financial management grant

Balance unspent at beginning of year 1,753 2,191 1,753 2,191 Current year receipts 750 500 750 500 Conditions met - transferred to revenue (2,503) (938) (2,503) (938) Conditions still to be met - - 1,753 - 1,753 transferred to liabilities

Social housing foundation grant

Balance unspent at beginning of year 12,259 - - - Current year receipts 80,149 12,259 - - Conditions met - transferred to revenue (12,259) - - - Conditions still to be met - 80,149 12,259 - - transferred to liabilities

Municipal infrastructure grant

Balance unspent at beginning of year 159,462 60,331 159,462 60,331 Current year receipts 282,669 339,174 282,669 339,174 Deferred income (110,403) (109,951) (110,403) (109,951) Deferred income released 214,313 - 214,313 - Transferred to debtors (27,412) - (27,412) - Conditions met - transferred to revenue (468,779) (130,092) (468,779) (130,092) Conditions still to be met - 49,850 159,462 49,850 159,462 transferred to liabilities

This grant is made available to support municipal capital budgets to fund municipal infrastructure and to upgrade existing infrastructure, primarily for the benefit of poor households.

Municipal system improvement grant

Balance unspent at beginning of year 4,282 5,639 4,282 5,639 Conditions met - transferred to revenue (4,282) (1,357) (4,282) (1,357) Conditions still to be met - - 4,282 - 4,282 transferred to liabilities

This grant is provided to finance the implementation of projects as stated in the activity plan.

308 30996 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

Provincial grants: Soccer city 2010

Balance unspent at beginning of year 1,871 77,576 1,871 77,576 Current year receipts 555,452 988,615 555,452 988,615 Expenditure incurred in advance - 73,740 - 73,740 Transferred to debtors (73,740) - (73,740) - Conditions met - transferred to revenue (477,417) (1,138,060) (477,417) (1,138,060) Conditions still to be met - 6,166 1,871 6,166 1,871 transferred to liabilities

This grant is provided for the upgrade of Soccer City for the 2010 soccer world cup.

Gautrain

Balance unspent at beginning of year 1,095 - 1,095 - Current year receipts - 2,000 - 2,000 Conditions met - transferred to revenue (516) (905) (516) (905) Conditions still to be met - 579 1,095 579 1,095 transferred to liabilities

Ellis Park Upgrading - 2010

Balance unspent at beginning of year 2,836 7,895 2,836 7,895 Current year receipts 119,494 109,294 119,494 109,294 Deferred income (105,975) (114,353) (105,975) (114,353) Transferred to debtors (7,386) - (7,386) - Conditions still to be met - 8,969 2,836 8,969 2,836 transferred to liabilities

Confederations cup

Current year receipts 31,128 - 31,128 - Conditions met - transferred to revenue (17,582) - (17,582) - Conditions still to be met - 13,546 - 13,546 - transferred to liabilities

Provincial grants: capital projects

Balance unspent at beginning of year 346,750 186,028 346,750 186,028 Current year receipts 409,978 521,349 41,400 205,502 Deferred income (36,805) (38,752) (36,805) (38,752) Repaid to province (107) - (107) - Conditions met - transferred to revenue (391,338) (321,875) (52,922) (6,028) Conditions still to be met - 328,478 346,750 298,316 346,750 transferred to liabilities

These grants are provided to finance Capital Projects in respect of Social Services and Housing.

Included in assets under construction is a capitalised portion of R31,330 million.

31097 311 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

Provincial grants: operating projects

Balance unspent at beginning of year 2,318 5,899 2,318 5,899 Current year receipts 14,550 2,753 14,550 2,753 Repaid to province (64) - (64) - Conditions met - transferred to revenue (13,573) (6,334) (13,573) (6,334) Conditions still to be met - 3,231 2,318 3,231 2,318 transferred to liabilities

These grants are provided to finance community projects.

Provincial grants: top structure of houses

Current year receipts 308,824 151,409 308,824 151,409 Conditions met - transferred to revenue (308,824) (151,409) (308,824) (151,409) Conditions still to be met - - - - - transferred to liabilities

Provincial health subsidies

Current year receipts 72,262 50,850 72,262 50,850 Conditions met - transferred to revenue (72,262) (50,850) (72,262) (50,850) Conditions still to be met - - - - - transferred to liabilities

The Municipality renders health services on behalf of the Provincial Government and is refunded approximately 20% of total expenditure incurred. These funds have been used exclusively to fund clinic services. The conditions of the grant have been met. There was no delay or withholding of the subsidy.

Restructuring grant

Current year receipts 7,014 - - -

This grant is made available to support municipal restructuring initiatives.

Neighbourhood Development Partnership Grant

Current year receipts 56,970 - 56,970 - Deferred income (50,269) - (50,269) - Conditions still to be met - 6,701 - 6,701 - transferred to liabilities

Public Transport (SPTN) - 2010

Balance unspent at beginning of year 341,471 209,502 341,471 209,502 Current year receipts 1,286,973 329,000 1,286,973 329,000 Deferred income (1,186,954) (197,031) (1,186,954) (197,031) Conditions still to be met - 441,490 341,471 441,490 341,471 transferred to liabilities

310 31198 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

34. OTHER INCOME

Commissions received 195,395 152,818 - - Cut off fees 40,076 29,989 - - Disposal of obsolete materials 4,725 6,344 - - Fees earned 22,045 20,242 - - Internal recoveries - MEs - - 184,029 149,236 Tourism - Miss World 60,314 - - - Demand site management levy 205,456 - - - Sundry revenue 513,364 564,066 133,729 243,748 1,041,375 773,459 317,758 392,984

35. EMPLOYEE RELATED COSTS

Employee related costs: Salaries and 4,029,964 3,307,845 2,120,148 1,633,853 wages Employee related costs: Pension 398,834 319,519 210,178 158,814 contributions Employee related costs: Gratuities 16,722 19,643 23,486 19,519 Employee related costs: Medical aid 138,837 115,288 138,837 115,288 contributions Actuarial losses 130,143 31,430 130,143 31,430 Housing benefits and allowances 39,473 33,184 28,125 22,572 Overtime payments 253,570 206,998 152,527 112,012 Bonus 109,238 80,716 12,412 18,258 Travel, motor car, accommodation, 231,230 199,939 193,781 164,627 subsistence and other allowances Less: Employee costs included in other (78,339) 4,201 (79,195) 2,853 expenses 5,269,672 4,318,763 2,930,442 2,279,226

Remuneration of the Executive Mayor

Annual Remuneration 593 517 Car Allowance 170 170 Performance Bonuses - - Contributions to UIF, Medical and Pension Funds 97 86 Total 860 773

Remuneration of the City Manager

Annual Remuneration 1,374 1,259 Car Allowance 125 125 Performance Bonuses 121 245 Contributions to UIF, Medical and Pension Funds 303 278 Total 1,923 1,907

Remuneration of Executive Director: 2010

Annual Remuneration 1,200 911 Performance Bonuses 129 178 Contributions to UIF, Medical and Pension Funds 20 17 Car Allowance 282 282 Total 1,631 1,388

31299 313 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

Remuneration of the Executive Director: Central Planning Unit

Annual Remuneration 777 710 Performance Bonuses 105 124 Contributions to UIF, Medical and Pension Funds 176 161 Car Allowance 110 110 Total 1,168 1,105

Remuneration of the Chief Information Officer

Annual Remuneration 756 677 Car Allowance 144 144 Performance Bonuses 38 88 Eminence 120 - Contributions to UIF, Medical and Pension Funds 146 126 Total 1,204 1,035

Remuneration of the Director: External Relations

Annual Remuneration 631 580 Car Allowance 47 47 Performance Bonuses - - Contributions to UIF, Medical and Pension Funds 22 18 Total 700 645

Remuneration of the Executive Director: Comm. Marketing and Events

Annual Remuneration 1,197 855 Car Allowance 96 96 Performance Bonuses 102 57 Contributions to UIF, Medical and Pension Funds 1 2 Total 1,396 1,010

Remuneration of the Executive Head: Joburg Risk Audit Services

Annual Remuneration 660 610 Car Allowance 385 220 Performance Bonuses 89 105 Eminence 240 - Contributions to UIF, Medical and Pension Funds 1 1 Total 1,375 936

Remuneration of the Director: Legal and Compliance

Annual Remuneration 679 698 Car Allowance 82 82 Performance Bonuses 87 103 Eminence 176 - Contributions to UIF, Medical and Pension Funds 55 34 Total 1,079 917

312 313100 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

Remuneration of the Executive Director: Finance

Annual Remuneration 1,682 1,288 Car Allowance 72 72 Performance Bonuses 148 175 Contributions to UIF, Medical and Pension Funds 28 25 Total 1,930 1,560

Remuneration of the Executive Director: Economic Development

Annual Remuneration 1,278 1,026 Car Allowance 132 132 Performance Bonuses 46 - Contributions to UIF, Medical and Pension Funds 2 2 Total 1,458 1,160

Remuneration of the Executive Director: Revenue and Customer Relations Management

Annual Remuneration 1,274 989 Car Allowance 101 101 Performance Bonuses 117 138 Contributions to UIF, Medical and Pension Funds 1 1 Total 1,493 1,229

Remuneration of the Executive Director: Community Development

Annual Remuneration 1,293 975 Car Allowance 86 86 Performance Bonuses 117 138 Contributions to UIF, Medical and Pension Funds 32 30 Total 1,528 1,229

Remuneration of the Executive Director: Development Planning and Urban Development

Annual Remuneration 1,260 991 Car Allowance 60 60 Performance Bonuses 113 89 Contributions to UIF, Medical and Pension Funds 1 1 Total 1,434 1,141

Remuneration of the Executive Director: Environmental Management

Annual Remuneration 1,185 764 Car Allowance 108 108 Performance Bonuses 35 81 Contributions to UIF, Medical and Pension Funds 1 2 Total 1,329 955

314101 315 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

Remuneration of the Executive Director: Infrastructure and Services

Annual Remuneration 1,320 1,080 Performance Bonuses 43 38 Contributions to UIF, Medical and Pension Funds 2 2 Total 1,365 1,120

Remuneration of the Executive Director: Housing

Annual Remuneration 1,196 876 Car Allowance 111 110 Performance Bonuses 73 127 Contributions to UIF, Medical and Pension Funds 15 16 Total 1,395 1,129

Remuneration of the Chief of Police

Annual Remuneration 851 786 Car Allowance 102 102 Performance Bonuses 77 97 Eminence 220 - Contributions to UIF, Medical and Pension Funds 128 157 Total 1,378 1,142

Remuneration of the Executive Head: Emergency Management Services

Annual Remuneration 971 817 Car Allowance 109 109 Performance Bonuses 99 117 Eminence 220 - Contributions to UIF, Medical and Pension Funds 2 2 Total 1,401 1,045

Remuneration of the Executive Director: Transportation

Annual Remuneration 1,197 890 Car Allowance 73 72 Performance Bonuses - 89 Contributions to UIF, Medical and Pension Funds 181 2 Total 1,451 1,053

Remuneration of the Executive Director: Health

Annual Remuneration 1,232 927 Car Allowance 108 108 Performance Bonuses 111 131 Contributions to UIF, Medical and Pension Funds 1 2 Total 1,452 1,168

314 315102 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

Remuneration of the Executive Director: Corporate Services

Annual Remuneration 1,165 925 Car Allowance 144 144 Performance Bonuses 118 139 Contributions to UIF, Medical and Pension Funds 32 30 Total 1,459 1,238

Remuneration of the Director: Office of the City Manager Annual Remuneration 652 576 Car Allowance 128 - Contributions to UIF, Medical and Pension Funds 1 2 781 578

Remuneration of the Head: Private Office of the Executive Mayor Annual Remuneration 670 609 Car Allowance 104 104 Performance Bonuses 76 90 Contributions to UIF, Medical and Pension Funds 2 2 852 805

36. REMUNERATION OF COUNCILLORS

Executive Mayor 898 773 898 773 Mayoral Committee Members 7,256 6,379 7,256 6,379 Speaker 708 619 708 619 Councillors 53,257 49,176 53,257 49,176 Councillors’ pension contribution 6,538 5,390 6,538 5,390 Total Councillors’ Remuneration 68,657 62,337 68,657 62,337

In-kind Benefits:

The Executive Mayor, Speaker and Mayoral Committee Members are full-time.

Each is provided with an office and secretarial support at the cost of the Council.

The Executive Mayor is entitled to stay at the mayoral residence owned by Council at no cost.

The Executive Mayor has use of a Council owned vehicle for official duties.

The Executive Mayor has two full-time bodyguards. The Speaker has one full-time bodyguard.

316103 317 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

37. IMPAIRMENT OF CURRENT RECEIVABLES

Impairments 703,589 (191,133) 259,620 (205,014) Contributions to impairment provision - 1,200,765 144 16,017 - Other debtors Contributions to impairment provision - 1,076,710 811,177 (20,978) 171,400 Consumer debtors Impairments written off - Other debtors 1,006,627 961,928 813,281 921,933 Impairments written off - Consumer (2,341,905) (586,474) (222,359) (441,333) debtors Consumer debtors provision reversal (167,515) (256,842) (148,290) (261,337) 1,478,271 738,800 697,291 185,649

38. DEPRECIATION AND AMORTISATION

Property, plant and equipment 669,261 731,063 296,366 393,390 Intangible assets 58,015 71,242 24,242 38,869 Investment property 6,332 4,097 1,465 1,358 733,608 806,402 322,073 433,617

39. BULK PURCHASES

Electricity 3,752,533 2,795,652 - - Water 1,676,217 1,528,666 - - Total Bulk Purchases 5,428,750 4,324,318 - -

40. CONTRACTED SERVICES

Information Technology Services 265,516 256,999 265,516 256,999 Fleet Services 702,439 458,998 49,869 43,664 Operating Leases 189,398 149,796 187,310 147,463 Specialist Services 592,052 581,864 592,052 581,864 Other Contractors 181,705 157,424 18,459 13,434 Total Contracted Services 1,931,110 1,605,081 1,113,206 1,043,424

316 317104 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

41. GRANTS AND SUBSIDIES PAID

Grants paid to MEs City of Johannesburg Property - - 10,516 11,130 Company (Pty) Ltd Johannesburg City Parks - - 423,771 364,145 Johannesburg Development Agency - - 29,924 28,400 (Pty) Ltd Johannesburg Metropolitan Bus - - 265,498 258,343 Services (Pty) Ltd Johannesburg Roads Agency (Pty) Ltd - - 404,003 371,316 Johannesburg Social Housing - - 81,836 75,047 Company (Pty) Ltd Johannesburg Tourism Company - - 52,478 19,258 Metropolitan Trading Company (Pty) - - 47,635 35,972 Ltd Pikitup Johannesburg (Pty) Ltd - - 806,682 678,494 Roodepoort City Theatre - - 7,769 6,728 The Johannesburg Civic Theatre (Pty) - - 17,259 15,823 Ltd The Johannesburg Zoo - - 34,714 36,644 - - 2,182,085 1,840,080 Other subsidies Grant paid: Sporting Organisations 1,000 944 1,000 944 (Marks Park Sports Club) Grant paid: Other 39,128 21,698 39,128 21,698 Grant paid: Housing top structures 321,293 173,652 321,293 173,652 361,421 1,434,351 361,421 1,434,351 Total Grants and Subsidies Paid 361,421 196,294 2,543,506 2,097,594

Grants paid to MEs are utilised to fund capital and operational expenditure.

The grants paid are based on the approved operating and capital budgeted amounts as approved by Council.

318105 319 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

42. GENERAL EXPENSES

Administration and management fees 29,603 24,946 - - Advertising 59,585 53,831 14,387 18,722 Auditors remuneration 27,855 25,104 10,492 11,232 Bank charges 41,467 53,357 35,316 48,480 Billing and meter reading charges 66,818 68,466 - - Cleaning 22,063 17,812 - - Commission paid 33,944 30,610 - - Computer expenses 23,590 18,848 - - Conferences and seminars 21,407 23,887 12,358 15,800 Consulting and professional fees 116,458 79,392 73,624 48,532 Consumables 92,079 70,993 17,705 13,210 Debt collection 89,629 43,477 89,530 43,413 Donations 1,610 887 - - Entertainment 8,119 6,115 - - ME - charges - - 366,628 425,696 Settlement costs - 168,347 - 168,347 Post retirement expenses 192,184 59,900 188,397 62,329 Hire 14,821 14,825 13,311 13,537 Horticulture 41,257 28,901 - - Insurance 213,443 144,098 137,614 88,636 Other expenses 757,699 619,819 142,565 68,298 Lease rentals on operating lease 108,808 81,073 80,341 57,666 Marketing and promotions 80,299 84,614 52,825 68,873 Motor vehicle expenses 100,279 119,435 - - Printing and stationery 62,422 58,981 44,614 43,637 Productions 109,967 8,258 - - Security 287,396 232,606 153,325 113,444 Software expenses 37,077 33,478 18,703 21,761 Staff welfare 9,284 7,566 113 69 Subscriptions and membership fees 12,587 34,369 8,536 29,275 Telecommunication costs (Telephone, 97,034 81,133 43,007 38,311 faxes and cell phones) Training 47,841 31,973 28,397 19,937 Travel - local 13,301 7,778 - - Travel - overseas 14,983 9,298 9,853 6,132 Utilities 140,933 161,961 239,463 236,109 2,975,842 2,506,138 1,781,104 1,661,446

318 319106 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

43. IMPAIRMENTS / (REVERSAL OF IMPAIRMENTS)

Loans impaired

Pikitup Johannesburg (Pty) Ltd - - (15,334) (13,859)

Impairments

Investment property - 223 - - Property, plant and equipment 31,469 61,291 31,172 60,863 Intangible assets - 5 - 5 Reversal of impairments - Loans to - - (15,334) (13,859) Municipal Entities Total impairments 31,469 61,519 15,838 47,009

44. TAXATION

Major components of the tax expense (income)

Current Local income tax - current period 16,240 6,853 - - Local income tax - recognised in 469 (2,610) - - current tax for prior periods Current tax 27,420 16,702 - - 44,129 20,945 - -

Deferred Originating and reversing temporary (7,676) 3,678 - - differences Changes in tax rates - 147 - - Deferred tax (21,061) (68,681) - - Other deferred tax (1,158) 470 - - Arising from prior period adjustments 513 139 - - (29,382) (64,247) - - 14,747 (43,302) - -

320107 321 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

45. CASH GENERATED FROM OPERATIONS

Surplus before taxation 740,804 1,954,322 89,584 1,303,117 Non-cash movements Depreciation and amortisation 733,608 806,402 322,071 433,615 Deficit on sale of assets 31,512 14,982 6,139 13,815 Contribution to impairment provision 1,478,271 738,800 697,291 185,649 Interest earned - external investments (645,217) (627,742) (1,215,155) (1,175,844) Interest earned - outstanding debtors (160,924) (100,034) (160,924) (100,034) Interest paid 1,249,801 971,161 1,121,767 882,576 Impairments 31,469 61,519 15,839 47,009 Deferred income 11,862 1,658 13,470 - Equity share in associate 197 358 - - Leasehold property received at no cost (114,094) (61,220) (49,502) - Borrowings movements (58,572) (217,963) (45,015) (256,844) Capitalisation adjustment - 21,383 - 21,383 Grant income not recognised for assets 1,298,699 497,455 1,298,699 497,455 under construction Investments movements (221,184) (23,242) (240,738) (23,242) Provisions movements 124,344 227,626 32,010 205,301 Post retirement movements 288,239 82,363 250,470 101,388 Asset movements (2,618) (2,164) - - Changes in working capital: Inventories (56,303) 2,755 2,518 (3,885) Decrease/(increase) in other loans and (169,341) (472,045) (353,960) (283,208) receivables Decrease/(increase) in consumer (1,428,341) (866,732) (434,629) (127,860) debtors Decrease/(increase) in Biological 34 1,576 - - assets Assets held for sale 12 (137) - - (Decrease)/increase in creditors 1,284,056 350,211 705,260 (585,562) (Decrease)/Increase in VAT 61,626 257,196 16,508 35,857 Unspent conditional grants and (15,001) 175,557 (37,308) 307,245 receipts 4,462,939 3,794,045 2,034,395 1,477,931

46. TAX (PAID) REFUNDED

Balance at beginning of the year (13,254) 5,221 - - Current tax for the year recognised in (44,129) (20,945) - - Statement of financial performance Balance at end of the year 43,315 13,254 - - (14,068) (2,470) - -

320 321108 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

47. UTILISATION OF LONG-TERM LIABILITIES RECONCILIATION

Long-term liabilities 10,355,006 7,909,042 10,200,636 7,721,536 Used to finance property, plant and (10,194,851) (7,696,075) (10,040,481) (7,508,569) equipment – at cost

Unspent cash 160,155 212,967 160,155 212,967 Cash set aside for the repayment of 2,923,675 2,464,353 2,923,675 2,464,353 long-term liabilities Cash invested for the repayment of 3,083,830 2,677,320 3,083,830 2,677,320 long-term liabilities

Reconciliation of cash invested for the repayment of long term liabilities Held to maturity investments (Refer 2,783,830 2,377,320 2,783,830 2,377,320 note 21) Ring-fenced call investment deposits 300,000 300,000 300,000 300,000 (Refer note 28) 3,083,830 2,677,320 3,083,830 2,677,320

Non-current liabilities have been utilised in accordance with the Municipal Finance Management Act. Sufficient cash has been set aside to ensure that non-current liabilities can be repaid on redemption date.

48. COMMITMENTS

Commitments in respect of capital expenditure:

Authorised and not yet contracted for  Infrastructure 1,246,392 1,645,825 342,955 443,869  Community 134,797 231,952 134,797 231,952  Other 53,677 587,483 - 99,368  Heritage 13,305 7,000 13,305 7,000 1,448,171 2,472,260 491,057 782,189 Authorised and contracted for  Infrastructure 1,104,503 2,535,008 494,958 1,579,062  Community 384,050 76,185 383,050 76,185  Other 546,686 187,036 148,266 168,690 2,035,239 2,798,229 1,026,274 1,823,937 3,483,410 5,270,489 1,517,331 2,606,126

This expenditure will be financed from: External Loans 1,915,001 2,706,321 853,518 1,085,727 Capital Replacement Reserve 32,454 188,755 27,194 32,155 Government Grants 1,321,319 1,967,995 636,619 1,488,244 Internal cash 96,936 153,690 - - District Council Grants 117,700 253,728 - - 3,483,410 5,270,489 1,517,331 2,606,126

322109 323 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

48. COMMITMENTS (continued)

Operating leases - as lessee (Fleet)

Minimum lease payments due - within one year 130,897 85,791 130,897 85,791 - in second to fifth year inclusive 142,155 199,277 142,155 199,277 273,052 285,068 273,052 285,068

Operating leases – as lessee (Buildings)

Minimum lease payments due - within one year 385,848 367,324 13,472 20,364 - in second to fifth year inclusive 459,513 852,170 53,177 51,622 - later than five years 59,330 89,129 21,041 36,068 904,691 1,308,623 87,690 108,054

49. CONTINGENCIES

GROUP

Roodepoort City Theatre

The Theatre entered into a contractual agreement with the National Lotteries Board during 2006 for the production of three operas (Zauberflöte, Gräfin Mariza and Don Giovanni). These productions were executed during 2006 and the first quarter of 2007, and it was funded by the Theatre from operational funds. The expectation was that, as before, this was a logistical arrangement for a very short period of time. As per the Theatre's previous experience, the experience of other organisations in Arts and Culture and the standard procedures of the Lottery as understood at the time, the expenses incurred were to be claimed from the Lottery on completion of the above mentioned productions. The Theatre submitted all the required documentation to the Lottery promptly and within required timeframes. Throughout the last 18 months, management had been very diligent in responding to all requests for further information from the Lottery. However, to this day, there is still R1,660 million outstanding in funding, for the second consecutive year. Whenever management attempts to follow up on the matter, it is either met by non-response from the Lottery offices. The Chief Executive Officer, Chairman of the Board and the Chairperson of the Audit Committee recently met with the Chief Executive Officer from the NLDTF. In this meeting the Chief Executive Officer committed that the Theatre will receive conclusive feedback regarding the payment of outstanding funds by the end of July 2008. No feedback was received. On 27 August 2008 the Chief Financial Officer of the Theatre inquired with the NLDTF of the progress on payment. The Theatre was informed via electronic mail that the Distribution Agency from the NLDTF has taken the decision that they don't fund post production costs and secondly the shifting of funds from a call account to an interest bearing account is illegal, therefore an amount of R793,230.00 must be returned to the NLDTF. In response to the correspondence received the Chief Executive Officer stipulated that the agreement was signed and treated on the basis of principles and precedents set in prior years - "delivery-before-payment". Till date of submission of the financial statements no further communication was received, not from the Distribution Agency nor their Legal Department claiming the refund as stipulated above.

Following the termination of employment of the entity's Company Secretary, Ms M Dladla we wish to inform you of the process that was followed in this matter. Despite the case being referred to the CCMA, we are confident that the matter was dealt with in a procedurally and substantively fair manner and, whilst there is always room for interpretation in this regard, we believe that the entity is not exposed. Ms Dladla referred the matter one month late. Nevertheless, the case was accepted and the CCMA hearing was scheduled for 22 August 2008. The Chief Executive Officer engaged with the City's Labour Department on any specific City requirements in this regard and was informed that this was a matter to be dealt with internally by the entity. The Board of Directors was satisfied that the matter has been dealt with appropriately.

322 323110 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

49. CONTINGENCIES (continued)

Johannesburg Roads Agency (Proprietary) Limited

These are legal claims that have arisen in the normal course of business and represent the possible amounts that Could be awarded should the claims prove successful. The amounts have been based on attorney’s best estimates of the possible amount payable. Refer to cases below:

- Manong & Associates v JRA ( Unfair discrimination ) Amount involved R4 million. - IMATU & SAMWU v UAC's ( Demarcation dispute ) No direct monetary claim involved. - Pipe Jack v JRA ( Unpaid invoice ) Amount involved R947,000. - Norfolk Road ( Subcontractor dug up road ) Amount involved R120,000. - Guardrails Technologies ( Not placing orders for max contract value ) Amount involved R765,594. - SAMWU National Provident Fund. No direct monetary claim involved. - Hetta Eiendoms Bpk v JRA (Claim for specific performance). Monetary value still to be quantified. - Unitrans v JRA (Claim for goods sold and delivered). R200,000. - Hetta Eiendoms Bpk v JRA (Claim for specific performance). Monetary value still to be quantified.

The amounts have not been provided for as management believes the outcome of the cases will be in the company's favour.

The Johannesburg Fresh Produce Market (Proprietary) Limited

CCMA Cases

The company is involved in litigation with certain employees whose employment was terminated as a result of Reorganization or dismissals for disciplinary reasons. These matters which the company is defending are currently with the CCMA. The company's total possible exposure is approximately R4,470,577.

Frameworks Media CC

Frameworks Media CC (R19,880,000) – This claim is based on a supposed contract for the distribution of fresh produce to various ‘Score Supermarket’ outlets. The matter was initially set down for hearing on 9 May 2008 but has subsequently been postponed sine the JFPM (defendant) has sought and been granted leave to amend its plea. The amendments to the plea are based on a discovery of possible collusion and fraud in the matter. The matter is not ready for trial. We do not believe that settlement is possible. We remain confident that our approach to continue defending this matter is correct, given our prospects of success.

Ikageng Cleaning Services

Ikageng Cleaning Services (R2,269,710) – An action for damages arising out of loss of earnings has been brought against the JFPM by Ikageng Cleaning Services, a service provider whose contract was terminated for poor and/or non-performance (breach of contract) over a period of four months. All the material terms of the contract relating to termination for breach were met. The company has filed its notice of intention to defend and plead. The pleadings stage has expired and all pleadings have been exchanged. Our denial in our defence is that we terminated the agreement in accordance with the cancellation clause contained in the agreement, based on poor workmanship and non-performance with the terms and condition of the agreement. The case is set down for trial on 8 February 2010. In the Gauteng South Division of the High Court. We remain confident about our prospects of success.

Energy Management

Energy Management (R42,000) - An unsolicited bid was presented to the JFPM by a company alleging that a saving could be realised in the utility costs incurred by the JFPM. The savings, if realised through effecting of the measures suggested by the bidder, were to be shared on a 50/50 basis. The cost saving measures so suggested were not implemented, however owing to other measures undertaken by the JFPM savings were realised in the utility costs. Energy Management has now brought a claim based on the 50% of the savings realised in the 2006/07 financial year. It is postulated that the matter will be successfully defended. There have been no further developments in respect of this case.

324111 325 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

49. CONTINGENCIES (continued)

Siyanda Technologies

A proposal for IT consulting services was received from Siyanda Technologies. The proposal gave latitude to the company to terminate the contract for cause by giving three months written notice of termination to Siyanda. After having received unsatisfactory performance from Siyanda on the deliverables, the company opted to terminate the contract. A letter of demand was received from the attorney’s of Siyanda technologies alleging that as a result of the unlawful termination of the contract their client had suffered damages in the form of loss of earnings. A summons commencing action was served on the company by Siyanda. The matter is before the High Court and was scheduled for trial on 12 June 2009. However, the matter was postponed by the plaintiff and as such no court date has been allocated. Our attorneys are in the process of filling an amended plea to address our initial plea of bare denial. However, due to the timeline given for the trial date, a pre-trial conference needs to occur imminently. We do not believe that a settlement of the matter is prudent, as we are confident that we have a strong defence in the matter. We remain confident that our approach to continue defending this matter is correct.

Marobela

The matter relates to Mr. Marobela’s employment contract that was terminated by the company. The matter was initiated in the Labour Court with Mr. Marobela being unsuccessful with his claim. He subsequently lodged an appeal in the Labour Court and simultaneously instituted a civil action in the High Court for a sum total of R5 million. A date for the appeal has not been obtained and the transcriptions are being awaited. It is highly unlikely that the civil action would proceed in the High Court if the appeal is disregarded in the Labour Court. The case is set down for trial on 22 October 2009 in the Gauteng South Division of the High Court. We remain confident about our prospects for success.

Metropolitan Bus Services (Pty) Ltd

Litigation is continuing against the company relating to a dispute with a previous supplier who alleges that they suffered damages as a result of an alleged repudiation by the Company of a Security and Guarding Services agreement and is seeking damages of R217,569. The company's lawyers and management consider the likelihood of the action against the company being successful as unlikely, and the case should be resolved within the next two years.

Litigation is continuing against the company relating to a dispute with a previous supplier who alleges that the Company has awarded the Cleaning of Buses contract during 2006 to another company in a tender process that allegedly is irregular, defective and fatally flawed, and is demanding that the tender so awarded, be set aside. An Application has been launched to have the tender process reviewed and set aside by the High Court, and the Company is opposing this application. The company's lawyers and management consider the likelihood of the action against the company being successful as unlikely, and the case should be resolved within the next twelve months.

The company has a material number of traffic fines outstanding against its name. These fines are being transferred continuously into the names of the bus operators who were responsible for the transgressions noted on these fines. A provision of R50,000 is maintained to cover the future cost of those fines where the company may be unable to allocate to the correct person.

City Power (Pty) Ltd

Litigation by HVC Drilling (Pty), a supplier, is in progress relating to damages for alleged breach of contract by the company for failure to pay for services rendered. The amount being claimed is R307,000. The matter is being defended.

Legal action has been instituted by the Municipal Employees Pension Fund and the South African Municipal Workers Union for the company's unilateral withdrawal from their respective pension and provident funds. The claim amounts to R630 745.

An employee has launched legal action against the company, claiming damages amounting to R1,500,000 for defamation of character arising from alleged unlawful statements made by his superiors. The matter is being defended and awaiting trial. The plaintiff's success is very unlikely.

324 325112 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

49. CONTINGENCIES (continued)

The company has a potential liability arising from a labour dispute regarding the dismissal of employees claiming to be unfairly dismissed. The action could result in a reinstatement or twelve months salary amounting to R397,000 if dismissal is found to be unfair.

The company has a potential liability of R1,257,000 for service bonus for employees who qualify for gratuities.

The company has contingent assets of R9,548,000 resulting from insurance claims not yet confirmed.

City Parks (Pty) Ltd

This represents the company's portion of levies imposed by SALGBC to all employees within a municipality and its entities. However SALGBC does not recognise the company as an employer, and thus the company has no right of representation. Certain grievances were adjudicated by the SALGBC on behalf of previous employees. As the company is not recognised by such a body, the awards were made in absentia. Value R111,000.00 ( 2008: R137,000.00 )

Johannesburg Development Agency (Pty) Ltd

In 2005, the JDA entered into a contract for the construction of Baragwanath public transport facility: the supplier had FIGB provide a financial guarantee for the contract. On 13 February 2006, the JDA cancelled the contract because the supplier had defaulted: the JDA then turned to the FIGB demanding an amount of R1,400,000. The matter was taken to court, and the judgement was granted in favour of the JDA. In August 2007, FIGB appealed the court's judgement in the Kwa-Zulu Natal High Court and FIGB lost the appeal. Upon failure to secure permission to take the decision of the full bench of the Kwa-Zulu Natal High Court on appeal, the court issued a writ of execution for the judgement debt. The Sheriff returned the writ with an explanation that she could not find any FIGB asset to attach in order to satisfy the judgement. This has also been confirmed by the judgement debtor that they do not have assets to meet the judgement. Therefore the chances of recovering the R1,400,000 are non-existent at this stage.

On 20 April 2009 the Johannesburg Development Agency (Pty) Ltd, as one of several respondents cited, received a court application from an applicant, Kent Target Smith, challenging the City of Johannesburg's decision to implement the Bus Rapid Transit (BRT) system in or around Riverlea Extension, constituting Section 3 of the BRT. The challenge is from various fronts, including, but not limited to, lack of a proper Environment Impact Assessment in terms of the National Environment Management Act, requisition for information in terms of Promotion of Access to Information Act and the impact of the BRT in terms of Promotion of Administration Justice Act and the Bill of Rights. It is not clear what type of relief the applicant seeks from the court. The matter has not been set down for a hearing yet.

Johannesburg Social Housing Company (Pty) Ltd

JOSHCO is defending an action brought by an employee relating to his dismissal. JOSHCO, in line with internal disciplinary processes followed, remains confident that it is unlikely that a liability will arise in this regard, and directors do not expect the outcome of the action to have a material effect on JOSHCO's financial position. Much as JOSHCO is confident, the outcome of the judicial proceedings cannot be predicted.

JOSHCO employees have entered into contracts with the cell phone service provider MTN, through the company. The agreement is that the company will pay the subsidised amount relevant to the package given to the staff member and MTN will advise the staff member when the subsidised amount is about to be exhausted and if no further action is taken, MTN would then suspend the outgoing calls and this suspension never happened in some instances. At a meeting between MTN and JOSHCO, MTN advised that should such employees leave the services of JOSHCO, MTN will trace them and in the event they are untraceable, the outstanding amounts will be payable by JOSHCO. MTN further suggested that they will enter into payment arrangements with the affected employees to recover the outstanding amounts.

326113 327 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

49. CONTINGENCIES (continued)

The Kliptown Freedom Square Estate is currently for rental tenure only. Some of the tenants wanted ownership tenure because of the clause in the lease document which is as follows: "This lease shall come into operation on the day of inception and shall subsist for a minimum period of four years from date of occupation of the property by the lessee prior to transfer of the property into beneficiary's name". The legal opinion received by JOSHCO from the Senior Counsel states that such clause does not confer a right of transfer to the tenants, but merely stipulates a minimum lease period of four years and, and envisages a transfer of the property after such period of four years, provided that the property has been purchased in the ordinary course. He further stated that he is of the view that any action or application instituted by a tenant for the transfer of the immovable property should not succeed.

Pikitup (Pty) Ltd

Freehold land, buildings and servitudes purchased from The City of Johannesburg Metropolitan Municipality in terms of the sale of business agreement, have not as yet been transferred into the name of Pikitup Johannesburg (Proprietary) Limited. Transfer duties might be payable by the company on the transfer of property. It is not possible to estimate an expected amount.

The company has a contingent liability in respect of the service bonus on gratuity benefits to the value of R1,821,000. There are litigation claims against the company, the value at this point cannot be reliably estimated.

Johannesburg Property Company (Pty) Ltd

In terms of the sale of business agreement between the company and The City of Johannesburg Metropolitan Municipality, the company purchased its business as a going concern as contemplated in section 197 (1) (a)read with section 197 (2) (a) of the Labour Relations Act, 66 of 1955. The effect of this is that section 197 of the Labour Relations Act will operate to transfer the contract of employment of each affected employee from the City of Johannesburg Metropolitan Municipality to the company.

The City of Johannesburg Metropolitan Municipality has undertaken in terms of this agreement that it will bear all employee related liabilities or potential employee related liabilities and benefits up to the effective date of sale. In terms of the agreement reached with The City of Johannesburg Metropolitan Municipality employees will claim any past benefit services owing by The City of Johannesburg Metropolitan Municipality from the company and the company will in turn claim such payments from The City of Johannesburg Metropolitan Municipality.

Johannesburg Water (Pty) Ltd

The company has a contingent liability for allowances for bonus service in respect of employee gratuity benefits to the value of R7,687,000 (2008: R7,893,000), payable on resignation, retirement or death with at least 15 years service. This contingency is co-funded by the shareholder to the extent of R6,244,000 (2008: R6,498,000).

CJMM

Uninsured claims & litigations

Five Plaintiffs brought action against the Council in the 1990's, arising from major road and other construction works at the Empire Interchange, around the suburbs of Braamfontein, Milpark, Cottesloe, Melville, Parktown West, Emmarentia and Richmond. They allegedly suffered damages as a result of the Council having closed the road. One of the plaintiffs proceeded against the City and a judgment was given which effectively dismissed most of the claim against the City except for the diminution of the value of the property which theoretically can still be claimed against the City, however this potential claim will now be reduced substantially (this claim was originally for R4,146,583 the majority of which was for loss of earnings). The approximate amount that the plaintiff could now claim would be in the order of approximately R500,000. This contingent liability can now be reduced by R3,000,000.

Possible Court action against the City emanating from the termination of an insurance agreement for an amount of R23,000,000. Although the claimant has lately been pressurising the City for payment, no summons has yet been received as at end July 2008.

A Court action emanating from the alleged breach of contract of lease by the City for an amount of R15,000,000. This matter appears dormant, the plaintiff shows no inclination to proceed. 326 327114 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

49. CONTINGENCIES (continued)

Claim for compensation issued against the City and the Gauteng Provincial Government emanating from a road widening by the City. The amount claimed for compensation is R1,000,000. As at 31 July 2008, the action has been dormant for the last two years.

Claim for compensation against the City in respect of a property expropriated by it in terms of the Better Buildings Programme. The claim amounts to R1,000,000.

A claim for damages was instituted by Engen Petroleum as a result of the Grayston fly-over for loss of income. The total claim is in excess of R10,000,000 and is not insured. SCA has ruled against the City on the matter of whether the construction amounted to a diversion. Thus the City is likely to be found liable and a settlement may be necessary.

Claim for damages and compensation resulting from a road constructed. Total claim R11,900,000. Although settlement negotiations are ongoing, chances to settle the matter amicably appear slim.

Claim for an amount of R311,102,261 from an external service provider for loss of income as result of alleged illegal termination of contract. The claim is subject to arbitration which is currently in process.

Claim for payment of medical aid contributions in the amount or R20,000,000. The matter is going to trial in November 2009.

Claim for damages for R10,000,000.in respect of relocation of homeless people. Home Talk Developments (Pty) Ltd sued the City allegedly because the City relocated homeless people onto the Defendant’s property without his consent, making it impossible for him to develop the property. (Insurers said the claim is not covered).

Possible liability for the complete rehabilitation of a mine dump site in the region of R19,000,000. No movement.

Default judgment against the City for two amounts (R81,225 + R686,581) in total R767,806 granted on 30 July 2008 for non payment for services rendered. Judgment rescinded on 23 September 2008 and the City was granted leave to defend the matter.

Claim relating to the City’s alleged unlawful repudiation of contracts. Was dormant but has revived again R7,000,000. Application compel Plaintiff to provide relevant security to be filed at Court.

This is an application by residents of Phiri Soweto to have the prepaid water meter system installed there declared unconstitutional and unlawful. Judgement against the City was given on 30 April 2008. Leave to appeal heard on 9 September 2008, granted. Appeal was heard on 23 – 25 February 2009. Judgment in favour of the Council received on 26 March 2009. The application for leave to appeal by the residents of Phiri against the judgment of the SCA is set down for hearing in the Constitutional Court on 2 September 2009.

Claim for damages for unlawful termination of contract by the City. Pleadings being exchanged R3,500,000. (See Labour Relations (a)).

Claim for repayment of pre-2003 RSC Levies. Pleadings being exchanged R1,500,000. Amending papers. As well as requesting authority to approach the commissioner. Preparing all documents and affidavits related thereto.

Claim for payment of 50% (approx. R2,000,000) of all amounts already paid to external service provider for upgrading of a hostel.

Claim for damages against the COJ amounting to R11,668,746. The claim is based on an alleged breach of contract in that the City has allegedly failed to use its “best endeavours” to have the property transferred to the plaintiff.

Pension Fund Matters

Claim for outstanding contributions R780,000. The City did not withdraw in total from all Pension funds, but from certain pension funds, and the affected employees were transferred to the E-Joburg Pension Fund. The fact that there was this decision to withdraw is public knowledge, as is the litigation instituted by some pension funds and employees.

328115 329 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

49. CONTINGENCIES (continued)

Claim for outstanding contributions ±R38,200,000.

Application not to withdraw from Pension Fund. Pleadings being exchanged. Mediation taking place currently.

Application not to withdraw from Pension Fund. Mediation may take place.

Insured claims

There are a number of possible public liability claims totaling + R4,000,000 which are ongoing and which are covered by Insurance.

Guardrisk Contingency Fund. Provision for this liability includes all known liabilities against CJMM and MEs, legally required provision for claims incurred but not yet reported as well as business required provision to support the operational support and operational activities.

Guarantees

Guarantees were issued to the following companies:

Kelvin Power (Pty) Ltd - R155,600,000 to ensure that City Power Johannesburg (Pty) Ltd meets all its commitments.

South African Post Office - R2,200,000 in respect of bulk mailings.

Bonus gratuity service

A Contingent liability of R 34,953,000 has been raised due to uncertain future events not wholly within the control of the City, relating to employees on the City’s conditions who receive a gratuity service bonus of one year, for every five years of gratuity service completed, subject to a maximum of ten bonus years.

Refund of traffic fines

Due to the implementation of AARTO, all speeding fines issued by JMPD between the period 1 November 2008 to 11 February 2009 were invalid. Motorists who have already paid these fines for this period, have the right to claim a refund from CJMM.

328 329116 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

50. RELATED PARTIES

` Relationships Other members of the group City Housing Company (Pty) Ltd City of Johannesburg Property Company (Pty) Ltd City Power Johannesburg (Pty) Ltd Johannesburg City Parks Johannesburg Development Agency (Pty) Ltd Johannesburg Metropolitan Bus Services (Pty) Ltd Johannesburg Roads Agency (Pty) Ltd Johannesburg Social Housing Company (Pty) Ltd Johannesburg Tourism Company Johannesburg Water (Pty) Ltd Metropolitan Trading Company (Pty) Ltd Pikitup Johannesburg (Pty) Ltd Roodepoort City Theatre The Johannesburg Civic Theatre (Pty) Ltd The Johannesburg Fresh Produce Market (Pty) Ltd The Johannesburg Zoo Fried Shelf 128 (Pty) Ltd Greater Newtown Development Company (Pty) Ltd Constitutional Hill Development Company (Pty) Ltd JOSHCO JV Joint ventures Refer to note 19 JOSHCO JV Associates Refer to note 20 Fried shelf 128 (Pty) Ltd Greater Newtown Development Company (Pty) Ltd Constitutional Hill Development Company (Pty) Ltd JOSHCO JV Members of key management CJMM - Refer to note 35. Municipal Entities Directors remuneration-Annexure H

330117 331 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

50. RELATED PARTIES (continued)

Related party balances

Amounts included in Loans, Trade and other receivables regarding related parties City of Johannesburg Metropolitan Municipality 2,933,131 13,659,848 Roodepoort City Theatre 1,784 386 Johannesburg Social Housing Company (Pty) Ltd 7,323 111,409 Johannesburg Metropolitan Bus Services (Pty) Ltd 136,429 59,464 Pikitup Johannesburg (Pty) Ltd 198,721 437,501 City Power Johannesburg (Pty) Ltd 3,232,473 807,640 City of Johannesburg Property Company (Pty) Ltd 16,496 23,918 Johannesburg Water (Pty) Ltd 2,298,520 821,146 The Johannesburg Zoo 7,009 23,749 Metropolitan Trading Company (Pty) Ltd 98,324 77,997 Johannesburg Tourism Company 12,372 279 The Johannesburg Civic Theatre (Pty) Ltd 71 122 Johannesburg City Parks 43,560 293,249 Johannesburg Development Agency (Pty) Ltd 84,825 586,963 Johannesburg Roads Agency (Pty) Ltd 72,355 521,956 The Johannesburg Fresh Produce Market (Pty) Ltd 226,584 22,308 City Housing Company (Pty) Ltd 2,039 10,000 9,372,016 17,457,935

Amounts included in Loans, Trade and other payables regarding related parties City of Johannesburg Metropolitan Municipality 6,438,885 10,556,682 Roodepoort City Theatre 24 1,982 Johannesburg Social Housing Company (Pty) Ltd 53,067 73,123 Johannesburg Metropolitan Bus Services (Pty) Ltd 35,943 180,970 Pikitup Johannesburg (Pty) Ltd 250,830 347,809 City Power Johannesburg (Pty) Ltd 802,350 3,227,525 City of Johannesburg Property Company (Pty) Ltd 33,400 30,041 Johannesburg Water (Pty) Ltd 416,362 2,190,912 The Johannesburg Zoo 11,217 21,436 Metropolitan Trading Company (Pty) Ltd 41,311 164,951 Johannesburg Tourism Company - 4,166 The Johannesburg Civic Theatre (Pty) Ltd 451 18,438 Johannesburg City Parks 296,152 38,861 Johannesburg Development Agency (Pty) Ltd 543,061 268,896 Johannesburg Roads Agency (Pty) Ltd 430,149 68,722 The Johannesburg Fresh Produce Market (Pty) Ltd 18,814 258,371 City Housing Company (Pty) Ltd - 5,050 Kelvin Power (Pty) Ltd 83,945 110,312 - - - - Ekurhuleni 18,694 41,125 9,474,655 17,609,372

330 331118 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

50. RELATED PARTIES (continued)

Related party transactions

Sales to related parties City of Johannesburg Metropolitan Municipality 1,061,283 743,619 Roodepoort City Theatre 7,769 6,728 Johannesburg Social Housing Company (Pty) Ltd 31,880 11,436 Johannesburg Metropolitan Bus Services (Pty) Ltd 276,633 262,111 Pikitup Johannesburg (Pty) Ltd 942,280 702,998 City Power Johannesburg (Pty) Ltd 226,211 164,455 City of Johannesburg Property Company (Pty) Ltd 21,717 17,021 Johannesburg Water (Pty) Ltd 289,143 323,879 Johannesburg Zoo 35,038 36,152 Metropolitan Trading Company (Pty) Ltd 47,313 40,250 Johannesburg Tourism Company 23,032 18,231 Johannesburg Civic Theatre (Pty) Ltd 17,259 15,823 Johannesburg City Parks 441,359 385,295 Johannesburg Development Agency (Pty) Ltd 29,924 28,400 Johannesburg Roads Agency (Pty) Ltd 404,003 392,518 The Johannesburg Fresh Produce Market (Pty) Ltd 35,990 3,740 3,890,834 3,152,656

Purchases from related parties City of Johannesburg Metropolitan Municipality 2,777,450 2,291,609 Johannesburg Social Housing Company (Pty) Ltd 16,463 991 Johannesburg Metropolitan Bus Services (Pty) Ltd 2,436 5,004 Pikitup Johannesburg (Pty) Ltd 155,374 28,250 City Power Johannesburg (Pty) Ltd 509,938 416,558 City of Johannesburg Property Company (Pty) Ltd 1,566 771 Johannesburg Water (Pty) Ltd 314,650 304,197 Johannesburg Zoo 4,872 7,228 Metropolitan Trading Company (Pty) Ltd 3,285 16,268 Johannesburg Tourism Company 310 2,705 Johannesburg Civic Theatre (Pty) Ltd 3,888 2,563 Johannesburg City Parks 35,534 26,141 Johannesburg Development Agency (Pty) Ltd 2,321 463 Johannesburg Roads Agency (Pty) Ltd 14,295 7,731 The Johannesburg Fresh Produce Market (Pty) Ltd 48,452 42,177 Ekurhuleni interest 2,967 2,926 3,893,801 3,155,582

332119 333 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

51. PRIOR YEAR ERRORS

Statement of financial position CJMM - Accumulated depreciation - (1,457) - (1,457) adjustment on Investment property CJMM - Consumer debtors - (19,506) - (19,506) CJMM - Correction reserves - 6,518 - 6,518 CJMM - Creditors 3,741 (961) 3,741 (961) CJMM - Finance lease obligation (23,183) (4,147) (23,183) (4,147) CJMM - Non-current provisions - (15,090) - (15,090) CJMM - Other debtors (34,876) 94 (34,876) 94 CJMM - Property, plant and equipment (41,148) (13,210) (41,148) (13,210) CJMM - Related party creditor - (10,313) - (10,313) CJMM - Held to maturity investments (470,382) 17,507 (470,382) 17,507 CJMM - VAT 7,433 5,880 7,433 5,880 CJMM - WIP: Soccer city 2010 1,238,060 417,306 1,238,060 417,306 CJMM - Structured loans 94,549 - 94,549 - CJMM - Structured loans 470,382 - 470,382 - JFPM - Property, plant and equipment - (1,889) - - JFPM - Trade and other receivables 257 - - - JFPM - Trade and other payables 271 (448) - - JOSHCO - Accumulated surplus (21) - - - JOSHCO - Property, plant and 24 28 - - equipment JOSHCO - Accumulated depreciation (28) - - - JOSHCO - Finance lease obligation (10) (21) - - JOSHCO - Deferred tax 5 - - - JOSHCO - Trade and other payables 7 - - - JOSHCO - VAT - 14 - - JOSHCO - Investment property 61,220 17,300 - - JOSHCO - Deferred income (434) (220) - - JRA - Taxation - 14,458 - - JRA - Accumulated depreciation 523 31,754 - - JRA - Deferred tax 452 - - - PIKITUP - Accumulated surplus (32,995) - - - PIKITUP - Property, plant and - 5,095 - - equipment PIKITUP - Accumulated depreciation - (8,637) - - PIKITUP - Accumulated amortisation - (5) - - PIKITUP - Deferred tax - (6,743) - - PIKITUP - Provision for the - 96,922 - - rehabilitation of landfill sites PIKITUP - Trade and other receivables 2,358 - - - PIKITUP - Trade and other payables (2,262) - - - PIKITUP - Vat accrued (96) - - - JPC - Property, plant and equipment - - 501 - - IFRS JPC - Intangible assets - 772 - - JPC - Property, plant and equipment - - 14 - - Fair value JPC - Deferred tax asset - (216) - - JPC - Deferred tax adjustment (437) - - - TOURISM - Accumulated depreciation - (102) - - WATER - Trade and other receivables (51,916) - - - WATER - Deferred income (63,096) 233,954 - - WATER - Post retirement Medical Aid 4,015 - - - WATER - Trade and other payables 4,417 - - - ZOO - Property, plant and equipment - (49) - - 1,166,830 765,103 1,244,576 382,621

332 333120 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

51. PRIOR YEAR ERRORS (continued)

Statement of financial performance CJMM - Joshco subsidy - - 61,220 17,300 CJMM - JPC portfolio 918 (112) 918 (112) CJMM - Trade payables - 497 - 497 CJMM - Correction of assets - 303 - 303 CJMM - Correction of debtors 33,955 18 33,955 18 CJMM - Correction of reserves - (6,518) - (6,518) CJMM - Correction of leases 3,746 359 3,746 359 CJMM - Depreciation (635) 852 (635) 852 CJMM - Housing debtors - 19,506 - 19,506 CJMM - Other 30 464 30 464 CJMM - Pension fund adjustment - 15,090 - 15,090 CJMM - Interest paid (94,549) - (94,549) - CJMM - Related party corrections - 10,313 - 10,313 CJMM - Interest earned - investments - (17,507) - (17,507) CJMM - Contracted services (3,768) - (3,768) - CJMM - VAT adjustments (7,433) (5,880) (7,433) (5,880) CJMM - WIP: Soccer city 2010 (1,238,060) (417,306) (1,238,060) (417,306) JFPM - Rental facilities and equipment (185) (608) - - JFPM - Bad debts (72) - - - JFPM - Fair value adjustment - 68 - - JFPM - Deficit on disposal of assets - 1,036 - - JFPM - Depreciation - 1,078 - - JFPM - Interest received - (225) - - JFPM - Finance costs - 381 - - JFPM - Other operating costs (271) (13) - - JFPM - Tax expense - 620 - - JOSHCO - Depreciation 32 (3) - - JOSHCO - Finance costs (3) (18) - - JOSHCO - Tax expense (6) - - - JOSHCO - Deferred income released 434 220 - - JRA - Taxation (452) (2,015) - - JRA - Depreciation (523) (44,197) - - PIKITUP - Revenue 16,155 - - - PIKITUP - Expenditure 16,840 - - - PIKITUP - Depreciation - 3,542 - - PIKITUP - Amortisation - 5 - - PIKITUP - Deferred taxation - 6,743 - - PIKITUP - Discounting of landfill site - (96,922) - - provision JPC - Depreciation - (1,273) - - JPC - Taxation - 216 - - JPC - Other income - (14) - - JPC - Taxation 07/08 437 - - - TOURISM - Depreciation - 102 - - WATER - Service charges 48,141 - - - WATER - Deferred income 63,096 (233,954) - - WATER - Post retirement benefit plans (4,015) - - - WATER - Revenue (5,097) - - - WATER - Cost of sales. (2,054) - - - WATER - Other income 28 - - - WATER - Other expenses 9,302 - - - WATER - Fair value adjustment (2,821) - - - ZOO - Depreciation - 49 - - (1,166,830) (765,103) (1,244,576) (382,621)

334121 335 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

51. PRIOR YEAR ERRORS (continued)

The correction of the error(s) results in the restatement of comparative figures as follows:

GROUP

2009 ERRORS

The Johannesburg Fresh Produce Market (Proprietary) Limited

Rental income was raised in error in 2008 and was reversed. Retrospective electricity for RSA was billed in 2008. The factor used was found to be incorrect and an adjustment was made to reduce the charge.

In 2006 the purchase order accrual account was corrected to align the general ledger to the module. In 2009 a detailed reconciliation was performed and all integrity issues resolved leaving the 2006 correction redundant.

A purchase order accrual was raised for security costs for the month of May 2008. The contract expired prior to the financial year end and the purchase order was reversed.

Deposits made in 2006 were not allocated, and subsequent proof has now been recognised.

Johannesburg Social Housing Company (Proprietary) Limited

Finance lease liabilities where recalculated after it was found that the incorrect method was used. This resulted in a prior period error.

During 2009 JOSHCO discovered that items which had original cost prices of less than R600 was capitalised as Property, Plant and Equipment. These items should have been written of in full in the year of purchase in terms of the JOSHCO accounting policy. Accelerated depreciation was accounted for these items in order to fairly reflect the carrying value of Property, Plant and Equipment.

The cost of assets which were recognised at an original cost of R1 initially was re-assessed during the year to the current market price of these items and discounted to the purchase date at the average inflation rate. The accumulated depreciation was recognised in order to reflect these assets at their most appropriate carrying values.

Leasehold improvements recognised in JOSHCO as a result of the transfer of leasehold property from CJMM.

Johannesburg Roads Agency (Proprietary) Limited

Property, plant and equipment:

The correction of the prior period relates to the alignment of the fixed assets register to the general ledger.

Pikitup Johannesburg (Proprietary) Limited

During the prior year, retained earnings was incorrectly stated due to expenditures that were not accounted for and the reversal of revenue billed.

City of Joburg Property Company (Proprietary) Limited

This is as a result of deferred tax being incorrectly reflected as a liability of R218,581 instead of an asset.

Johannesburg Water (Proprietary) Limited

Revenue:

During the current financial year, adjustments amounting to R48,141 million were performed. The adjustment relates to the reversal of water and sewer charges billed during the previous financial year. These adjustments have now been reflected as prior year adjustments, resulting in the comparatives being restated.

334 335122 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

51. PRIOR YEAR ERRORS (continued)

Deferred income:

There was a release from deferred income of R63,096 million relating to Developer funded networks. The release was previously based on the depreciation charged over the useful life of the asset. IFRIC 18 however requires that assets acquired under these circumstances be recognised as revenue in full on transfer of the assets from the developer. Accordingly, the current year transfers from the developer are recognised as required by IFRIC 18 and the accumulation treated as a prior year adjustment. The financial impact of the revised treatment in the current year is a credit of R74,000 million to other income.

Fair value adjustments:

The fair value adjustments on debtors and creditors that was previously performed was based on a model that contained inaccurate assumptions. The model has been revised as part of the recommendation and the adjustments subsequently effected resulting in the prior period adjustment listed below for debtors and creditors.

Retirement benefit obligation:

During the current financial year, adjustments amounting to R5,559 million (2008: R -) were performed. The adjustment relates to additional pensioner members allocated by the City of Johannesburg to the company. This is in respect of post retirement medical aid amounting to R4,015 million, as well as additional allocations of benefits paid against the notional accounts held in the prior year amounting to R1,544 million. These adjustments have now been reflected as prior year adjustments, resulting in the comparatives being restated.

2008 ERRORS

The Johannesburg Fresh Produce Market (Proprietary) Limited

The loans from shareholders were discounted in terms of IAS 39 at the prime interest rate as at the inception date of the loan in the prior financial year. It has since been confirmed that the interest rate applicable to the loans are in fact market related and the discounting effect was thus reversed.

Depreciation was incorrectly charged on buildings in the prior year and was therefore corrected in the financial year in which the error occurred.

During the asset verification exercise done in the current financial year, it was found that certain assets were duplicated in the fixed asset register and thus in the accounting records. These assets were written off in order to correct the prior year error.

Land and buildings previously classified as property plant and equipment has now been reclassified as investment property.

Improvements to leasehold buildings relating to the Soweto market was incorrectly recorded in the fixed assets of the company. These improvements have now been transferred to the City of Johannesburg Metropolitan Municipality. The balance on the loans from shareholders has also been adjusted accordingly.

Changes were made to the straight-lining effect on rental income for the prior years due to new information that came to light during the current financial year.

The invoices for rental income are prepared during the month prior to the month it relates to however, these invoices were recognised as rental income in the month in which it was generated. The error of recognising the income in the incorrect period were therefore corrected.

The interest raised on tax assessments received from SARS were not raised in the prior financial years. The error was corrected by recognising the interest payable or receivable in the financial year in which the assessments were completed.

Changes were made to the finance lease obligation and related accounts for the prior year due to new information that came to light during the current financial year in terms of escalation clauses applicable.

336123 337 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

51. PRIOR YEAR ERRORS (continued)

Johannesburg Social Housing Company (Proprietary) Limited

Finance leases liabilities where recalculated after it was found that the incorrect method was used. This resulted in a prior period error.

Leasehold improvements recognised in JOSHCO as a result of the transfer of leasehold property from CJMM.

Johannesburg Metropolitan Bus Services (Proprietary) Limited

The City of Johannesburg Metropolitan Municipality paid some Post Retirement Benefits to ex employees of the Company and allocated them incorrectly to their expenses in the past. These errors were detected and corrected this year which resulted in prior year adjustments to the Notional Loan Accounts in the books of the Company (Asset) and the City of Johannesburg Metropolitan Municipality (Liability).

Johannesburg Roads Agency (Proprietary) Limited

Property, plant and equipment::

These corrections relate to the useful life adjustments that were not correctly calculated.

Pikitup Johannesburg (Proprietary) Limited

Property, plant and equipment:

During the prior year, the cost of property, plant and equipment was incorrectly stated due to timing differences in the financial system. The useful live's of some assets were also not estimated correctly as some assets were still in use although they were fully depreciated at the end of the 06/07 financial year. This caused an over statement of the accumulated depreciation amount disclosed for 2005/6 and 2006/7 years.

Deferred taxation:

During the prior year, deferred tax was incorrectly stated in the Statement of Financial Performance and the Statement of Financial Position. The effect of the error was as follows: The deferred taxation asset was misstated due to incorrect calculations of tax values.

City of Joburg Property Company (Proprietary) Limited

Property, plant and equipment - IFRS

This is the result of an IFRS adjustment which was provided for on the prior year property, plant and equipment as disclosed in the prior year error note.

Intangible assets

During the prior year the carrying value of intangible assets was incorrectly stated due to amortisation being raised to the statement of financial performance whilst the PIMS system is still in the development stage. A prior year adjustment has been provided for.

Property, plant and equipment - Fair Value

The fair value of furniture and fittings was adjusted to increase the value of these assets that were acquired at a value of R 1.00 on inception of the company as disclosed in the prior year error note.

Deferred tax asset

Deferred tax raised on the carrying value of intangible assets incorrectly stated, due to amortisation being raised whilst the PIMS system is still in the development stage.

336 337124 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

51. PRIOR YEAR ERRORS (continued)

Johannesburg Tourism Company (Association Incorporated under section 21)

Finance leases depreciated over 10 years instead of 5 years corrected.

Johannesburg Water (Proprietary) Limited

Deferred income:

There was a release from deferred income of R233,954 million relating to Developer funded networks. The release was previously based on the depreciation charged over the useful life of the asset. IFRIC 18 however requires that assets acquired under these circumstances be recognised as revenue in full on transfer of the assets from the developer. Accordingly, the current year transfers from the developer are recognised as required by IFRIC 18 and the accumulation treated as a prior year adjustment.

The Johannesburg Zoo (Association incorporated under section 21 of the companies act)

The Zoo depreciated leased office equipment over the lease term of the assets. Because ownership does not transfer to the Zoo, these assets are now depreciated over the shorter of the lease term and the useful life. This has resulted in a depreciation adjustment in the prior periods.

CJMM

2009 ERRORS

VAT adjustments - (R 7,433 million) Input vat from municipal services.

Adjustment of the portfolio account - R 0,918 million Adjustment of portfolio account due to incorrect billing in the prior years.

Correction of leases - R 3,746 million Accounting for lease rentals which were not previously recognised in prior years.

Adjustment of the debtors account - R 33,954 million Correction of interest due on pension fund as a result of the conversion of defined benefit plans to defined contribution plans.

Adjustment of structured loans - R 94,549 million Correction of interest on a RMB loan as a result of the restructuring of the loan due to a change in the tax treatment of the structure.

Adjustment of Soccer city 2010 - (R 1,238,060 million) Adjustment due to change in intention from the stadium being built on behalf of the National Department of Sport and Recreation to being leased to CJMM on a 99 year lease.

Adjustment of PPE - R 61,220 million Transfer of leasehold improvements to JOSHCO as a result of the transfer of buildings to JOSHCO.

338125 339 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

51. PRIOR YEAR ERRORS (continued)

2008 ERRORS

Adjustment of the portfolio account - (R 0,112 million) This adjustment relates to the portfolio take-on debtors in prior years.

Adjustment of trade payables - Masana - R 0,497 million

Correction of assets under construction - R 0,303 million

Adjustment of the debtors account - R 0,018 million This adjustment relates to the salary advance account.

Correction of reserves - (R 6,518 million)

Correction of leases - R 0,359 million

Housing debtors - R 19,506 million Adjustment of the provision for bad debts relating to housing debtors for the 2006/07 financial year.

Adjustment of the pension fund account - R 15,090 million This adjustment relates to the actuarial gains and losses during the 2006/07 financial year.

Related party corrections - R 10,313 million

Adjustment of PPE - R 17,300 million Transfer of leasehold improvements to JOSHCO as a result of the transfer of buildings to JOSHCO.

VAT adjustments - (R 5,880 million)

52. COMPARATIVE FIGURES

Certain comparative figures have been reclassified.

53. RISK MANAGEMENT

The Group’s activities expose it to a variety of financial risks: market risk (including price risk, interest rate risk, liquidity risk and credit risk). The municipality’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial performance.

The Group uses derivative financial instruments to hedge certain risk exposures. Financial risk is managed by a CJMM Treasury Department.

CJMM Treasury identifies, quantifies and sets up control measures to manage financial risks in close co-operation with the municipality’s operating units. CJMM treasury executes its responsibility in line with approved policies and procedures of the City of Johannesburg’s assets and liabilities committee.

53.1. Liquidity risk

The Group’s risk to liquidity arises mainly due to funding liquidity risk, i.e the risk that the municipality will not be able to meet payment obligations due to insufficient funds being available.

The CJMM Treasury manages both the short-term and long-term cash requirements. Most of the municipality’s funds are invested short term using various money market instruments from the financial institutions. Long-term liquidity risk is managed through borrowings, mainly using a domestic medium term note (DMTN) programme.

338 339126 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

53. RISK MANAGEMENT (continued)

The Group also enjoys short term borrowing facilities of R400 million as well as an additional headroom of R100 million granted by its primary bankers, ABSA Bank. The headroom can only be utilised after the R400 million has been exhausted and are subject to prior credit approval. The borrowing facility has been utilised during the financial year 2008-2009.

53.2. Credit risk

This is the risk of losses due to counterparties being unable or unwilling to fulfil their contractual obligations.

The City Treasury manages credit risk through an approved counterparty limits and credit ratings policy.

Floating rate sensitivity analysis

` Financial instrument Amount 1 0.5 0 -0.5 -1 Jozi Bond @ 12.38% 8,843 1,183 1,138 1,094 1,050 1,006 Jozi Bond @ 12.58% 20,722 2,814 2,710 2,606 2,503 2,399 Jozi Bond @ 12,78% 127,300 17,541 16,905 16,268 15,632 14,995 Calyon French Loan 326,520 33,892 32,260 30,627 28,994 27,362 @9.379% DBSA @ 10.63% 6,129 712 682 651 620 590 DBSA @ 10.63% 18,220 2,119 2,027 1,936 1,845 1,754 DBSA @ 11.37% 600,000 76,380 73,380 70,380 67,380 64,380 DBSA @ 9.39% 113,743 11,817 11,249 10,680 10,111 9,543 Total 1,221,477 146,458 140,351 134,242 128,135 122,029

53.3. Market Risk

53.3.1. Interest rate risk

The City Treasury manages "interest rates" risk within the ambit of the Treasury Risk Management Policy. The City’s Risk Management Objective is to contain the negative impact of adverse interest rate movements on the City’s net borrowing position. The composition of the debt portfolio is 94% fixed interest rates and 6% linked to floating interest rates.

A long-term investment portfolio has been established and managed by external fund managers with an objective to match the long term liability profile.

The City utilises swap instruments to hedge its interest rate risk on the debt portfolio.

The City invests surplus cash into call and short term deposit instruments with approved financial institutions.

340127 341 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

53. RISK MANAGEMENT (continued)

Fair value interest rate risk

` Current interest Due in less Due in one to Due in two to Due in three to Due after five rate than a year two years three years four years years SCMB R300M 10.57 % 13,333,333 13,333,333 13,333,333 13,333,333 70,000,000 L121 14.70 % - - - - 30,000,000 ABSA R150m 12.27 % - - - - 150,000,000 INVESTEC R100m 11.77 % 10,630,616 11,938,155 13,396,488 15,054,252 8,206,532 RMB R95m 16.50 % - - - - 95,000,000 RMB R100m 15.56 % - - - - 100,000,000 RMB R248m 16.50 % - - - - 248,000,000 EKURHULENI 16.21 % - - 18,693,500 - - ABSA SPRINGFIELD 8.90 % 130,000 - - - 130,000 CALYON 7.23 % 36,280,000 36,280,000 36,280,000 36,280,000 181,400,000 DBSA 13.00 % 106,098,333 64,013,750 4,468,094 - 831,049,653 JOZIBOND 7.63 % 8,843,000 20,722,000 127,300,000 - - COJ01 11.95 % 1,000,000,000 - - - - COJ02 11.90 % - - - - 1,000,000,000 COJ03 9.70 % - - - - 700,000,000 COJ04 9.00 % - - - - 1,733,000,000 COJ05 12.21 % - - - - 2,268,000,000 COJ06 10.90 % - - - - 900,000,000

53.3.2. Price risk

Although the municipality is not directly exposed to foreign currency risk from its 2010 World Cup construction project, there is an indirect exposure to foreign exchange risk in that the rand equivalent of the euro cost associated with the procurement of various components from overseas, is passed to the City at the exchange rate equivalent to the ruling spot rate on the day of invoicing.

54. HEDGING ACTIVITIES

The fair value of financial instruments traded in active markets (such as trading and available-for-sale securities) is based on quoted market prices at the balance sheet date. The quoted market price used for financial assets held by the municipality is the current bid offer price.

2009

Instruments Total 2009 2010 2011 SWAP R200M RMB 5,888 4,108 1,569 211 SWAP R300M SCMB (16,304) (10,080) (5,220) (1,004) SWAP R319M RMB (17,009) (10,549) (5,423) (1,037) SWAP R400M RMB 22,438 13,815 7,226 1,397 Total (4,987) (2,706) (1,848) (433)

Summary Total 2009 2010 2011 Derivative trading liability (33,313) (20,629) (10,643) (2,041) Derivative trading asset 28,326 17,923 8,795 1,608 Total (4,987) (2,706) (1,848) (433)

340 341128 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

54. HEDGING ACTIVITIES (continued)

2008

Instruments Total 2008 2009 2010 2011 SWAP R200M RMB (13,451) (6,840) (3,602) (2,776) (233) SWAP R300M SCMB 10,815 6,388 2,758 1,579 90 SWAP R319M RMB 11,968 6,988 3,065 1,806 109 SWAP R400M RMB (13,523) (8,147) (3,425) (1,856) (95) Total (4,191) (1,611) (1,204) (1,247) (129)

Summary Total 2008 2009 2010 2011 Derivative trading asset 22,783 13,376 5,823 3,385 199 Derivative trading liability (26,974) (14,987) (7,027) (4,632) (328) Total (4,191) (1,611) (1,204) (1,247) (129)

The fair value of financial instruments that are not traded in an active market (for example, over-the counter derivatives) is determined by using valuation techniques. The municipality uses a variety of methods and makes assumptions that are based on market conditions existing at each balance sheet date. Quoted market prices or dealer quotes for similar instruments are used for long-term debt. Other techniques, such as estimated discounted cash flows, are used to determine fair value for the remaining financial instruments. The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows. The fair value of forward foreign exchange contracts is determined using quoted forward exchange rates at the balance sheet date.

The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the municipality for similar financial instruments.

The carrying amount of available-for-sale financial assets would be an estimated R 5,714,32 lower or R 610,460.30 higher were the discounted rate used in the discount cash flow analysis to differ by annual financial statements 1% from management’s estimates as shown by the table below.

Risk Matrix Current Basis Points (1.00) (0.50) - 0.50 1.00 Profit/ Loss (5,714) (5,348) (4,987) (4,635) (4,287)

342129 343 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

54. HEDGING ACTIVITIES (continued)

Changes in the fair value of derivative financial instruments that do not qualify for hedge accounting are recognised in the Statement of Financial Performance as they arise as shown in the table below.

SWAP market-to-market as at 30 June 2009

Opening Balance (4,191) (8,587) (4,191) (8,587) Ineffective (loss) / gain (796) 4,396 (796) 4,396 (4,987) (4,191) (4,987) (4,191)

The group does not engage in speculative trading in derivative instruments.

Instrument Purchase/Sale Amount Date entered into

SWAP R319m RMB Purchase 319,552 03/12/2001 SWAP R300m SCMB Purchase 300,000 03/12/2001 SWAP R200m RMB Sale (200,000) 30/06/2004 SWAP R400m RMB Sale (400,000) 30/06/2004

55. UNAUTHORISED, IRREGULAR, FRUITLESS AND WASTEFUL EXPENDITURE DISALLOWED

Fruitless and wasteful expenditure

Reconciliation of fruitless and wasteful expenditure Opening balance 3,691 3,686 - - Fruitless and wasteful expenditure 16,585 15,960 16,173 1,591 current year Condoned or written off by Council (79) (14,359) - - Transfer to other debtors for verification (19,325) (3,157) (19,325) (3,152) Fruitless and wasteful expenditure 3,152 1,561 3,152 1,561 under investigation Fruitless and wasteful expenditure 4,024 3,691 - - awaiting condonement

GROUP

2009

Incident

1. The Johannesburg Fresh Produce Market (Proprietary) Limited

Interest was raised for late payments on Telkom bills - R1,392.

Traffic fines was paid in settlement of long outstanding fines. A discount was negotiated - R6,950.

Disciplinary steps/criminal proceedings: No action taken - employees responsible have left the company.

342 343130 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

2. City of Johannesburg Property Company (Proprietary) Limited

Interest and penalties was raised by SARS due to the payment of the Executive Manager's bonus being paid on 17 February 2009 and processed in the January 2009 payroll - R37,650

Disciplinary steps/criminal proceedings: A request is being made to waiver this amount on the basis that JPC has an excellent payment record. No formal documentation has been received from SARS confirming that they will be raising this amount as interest and penalties. Once a formal reply has been received appropriate steps will be taken.

3. Johannesburg Zoo

Interest paid on late payment of VAT - R3,455.

Disciplinary steps/criminal proceedings: None.

4. Johannesburg Metropolitan Bus Services (Proprietary) Limited

Various traffic fines was paid - R266,820.

Disciplinary steps/criminal proceedings: None taken as the cost was transferred to the drivers responsible.

SARS PAYE penalties and interest was paid - R1,053.

Disciplinary steps/criminal proceedings: Employee responsible no longer on our employment.

5. Metropolitan Trading Company (Proprietary) Limited

SARS VAT penalties and interest - R 15,614.

6. Johannesburg City Parks

Interest on late payment of creditors - R 34,000.

7. Pikitup (Proprietary) Limited

SARS PAYE penalties and interest was paid - R 44,682.

8. Roodepoort City Theatre

SARS interest was payable on late payment of PAYE as a result of problems with the SARS efile website. Penalties were wavered by SARS, but the Entity remained liable for the interest - R0,306 million.

Disciplinary steps/criminal proceedings: None.

2008

Incident

1. Metropolitan Trading Company (Proprietary) Limited

A credit voucher was issued by Game for computers that did not meet the company's IT specifications - R4,699.

This amount was utilised to purchase items that were utilised in the company's operations.

2. Roodepoort City Theatre

Still waiting for information from entity.

344131 345 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

CJMM

2009

Incident

1. Corporate and Shared Services

Penalty paid to SARS relating to late payment of employer/employee contributions - R12,509 million.

Disciplinary steps/criminal proceedings: The matter is still under investigation.

2. Corporate and Shared Services

Payment of negative contribution to eJoburg and late payment of interest - R704,000.

Disciplinary steps/criminal proceedings: The matter is still under investigation.

3. Health, Emergency services, Housing, Development planning, Corporate and Shared Services, Infrastructure, Revenue and customer relations, Transportation, JMPD, Community Development

Interest raised on late payments - R6,112 million.

Disciplinary steps/criminal proceedings: No negligence has been proved and measures have been put in place to avoid it in future.

2008

Incident

Interest raised on late payments - R1,591 million.

Irregular expenditure Reconciliation of irregular expenditure

Opening balance 16,328 6,565 - - Irregular expenditure current year 15,487 44,801 - - Approved by Council or condoned (19,309) (35,038) - - Transfer to receivables for recovery - 1,718 - - - not condoned Irregular expenditure awaiting 14,224 16,328 - - condonement

GROUP

2009

Incident

1. Johannesburg Social Housing Company (Proprietary) Limited

There was an irregular payment made to Maranatha CC amounting to R2,111,850 by the previous accountant and R1,540,516 of that amount is recoverable from the banks. The corrective measures in terms of the strengthening of the processes regarding delegations have been implemented.

344 345132 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

Disciplinary steps/criminal proceedings: The disciplinary action has been taken against the affected staff members.

There was an irregular payment of R255,056 made to a private individual instead of being legally paid to the vendor. The amount which is recoverable from the bank is R178,818.

Disciplinary steps/criminal proceedings: The Forensic company has been appointed to investigate the matter and the appropriate actions will be taken, based on the recommendations by the forensic investigation.

2. Johannesburg Zoo

Procurement without three quotations - R456,333.

Disciplinary steps/criminal proceedings: None.

3. Johannesburg Development Agency (Proprietary) Limited

The expenditure of R621,739 relates to expenditure which was in contravention of the Supply Chain Management Policy, Regulation 36(1).

Disciplinary steps/criminal proceedings: The Bid Adjudication Committee's request for approval of this ratification was not approved by the Accounting Officer.

4. City of Johannesburg Property Company (Proprietary) Limited

Irregular expenditure incurred relates to Consultant's Fees, being additional hours spent on the completion of a project - R 596,950.

5. Pikitup (Proprietary) Limited

Irregular expenditure relates to the misapplication of MFMA Regulation 32A transpired after the company had been appointed. R 12,041,682

2008

Incident

1. Johannesburg Development Agency (Proprietary) Limited

The payment of R8,412,281 was made in breach of the Johannesburg Development Agency (Pty) Ltd's financial policies and procedures. The payment was an 'advanced payment' made in the 2007/2008 financial year for services that would only be undertaken and completed in the 2008/2009 financial year.

Disciplinary steps/criminal proceedings: The Johannesburg Development Agency (Pty) Ltd Board undertook an investigation and found that there was no unlawful intent by the contractor and/or employees to defraud the company and all the monies could be properly accounted for as legitimate expenditure on the various Nasrec projects. To ensure that there is no recurrence of similar events, internal controls have been improved in relation to the payment of creditors.

The expenditure of R1,351,184 relates to expenditure which contravenes the Supply Chain Management Regulations of the MFMA and has been condoned.

346133 347 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

56. ADDITIONAL DISCLOSURE IN TERMS OF MUNICIPAL FINANCE MANAGEMENT ACT

Contributions to organised local government Council subscriptions 8,500 7,500 8,500 7,500 Amount paid - current year (26,304) (7,500) (26,304) (7,500) Council subscriptions under dispute - (19,679) - (19,679) Balance unpaid (included in (17,804) (19,679) (17,804) (19,679) creditors)

Audit fees Opening balance 3,670 3,764 766 1,143 Current year audit fee 27,494 23,601 10,479 11,148 Amount paid - current year (21,306) (19,428) (10,597) (11,525) Amount paid - previous years (3,755) (4,267) - - Balance unpaid (included in 6,103 3,670 648 766 creditors)

VAT VAT (202,274) (140,648) 171,856 188,364

VAT input and VAT output are shown in note 9. All VAT returns have been submitted by the due date throughout the year.

PAYE and UIF Opening balance 45,025 36,652 30,141 25,393 Current year payroll deductions 749,473 601,275 447,410 355,104 Amount paid - current year (707,556) (552,171) (417,060) (324,963) Amount paid - previous years (42,921) (40,731) (30,141) (25,393) Balance unpaid (included in 44,021 45,025 30,350 30,141 creditors)

The balance represents PAYE and UIF deducted from the June 2009 payroll. These amounts were paid during July 2009.

Pension and Medical Aid Deductions Opening balance 54,781 34,898 49,568 30,137 Current year payroll deductions 972,710 802,844 694,647 559,007 Amount paid - current year (904,968) (746,252) (634,875) (509,439) Amount paid - previous years (54,850) (36,709) (49,568) (30,137) Balance unpaid (included in 67,673 54,781 59,772 49,568 creditors)

346 347134 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

Councillors' Arrears

The following Councillors had arrear accounts outstanding for more than 90 days as at 30 June 2009. All amounts are disclosed in rands and not rounded to the nearest thousand.

Outstanding Outstanding Total 30 June 2009 less than 90 more than 90 days Days (rands) (rands) Bapela CB 6,089 1,519 7,608 Botes C 9,167 - 9,167 Bovu BD 168 - 168 Dhlomo AN 1,752 15 1,767 Dlamini TJ 16,025 3,372 19,397 Dlamini TJ 1,539 523 2,062 Dlamini IN 193 15 208 Khanyi CJ 211 323 534 Lichaba DL 2,347 867 3,214 Lutya RN 723 232 955 Madungandaba BE 15,465 3,511 18,976 Mahlanga JP 1,799 799 2,598 Makhubo MM 47 15 62 Mkhize DS 17,663 919 18,582 Moepi NR 31 15 46 Mokoena A 1,253 - 1,253 Mthalane P 47 15 62 Mtshali EV 11 223 234 Ndlela NM 113 306 419 Putsoa A 4,067 846 4,913 Rakitla JB 8 - 8 Ramadikela G 2,353 937 3,290 Ramakhula MS 630 20 650 Sabbagh ST 662 6,131 6,793 Sabbagh ST 82 6,093 6,175 Seefort CM 916 4,079 4,995 Van Der Merwe MT 3,802 - 3,802 Total Councilors' Arrear Consumer Accounts 87,163 30,775 117,938

During the 2009 year the following Councillors’ had arrear accounts outstanding for more than 90 days.

Highest Total Comments 30 June 2009 amount (rands) outstanding > than 90 days (rands) Ancer SLS 102 1,056 Arrears 90+days Bailey LR 5,267 5,871 Arrears 90+days Bapela CB 6,089 7,608 Arrears 90+days Barnes AE 2,444 15,469 Arrears 90+days Bittkau R 1,221 7,006 Arrears 90+days Botes C 12,667 12,667 Arrears 90+days Bovu BD 1,099 1,099 Arrears 90+days Clarke SNM 161 4,830 Arrears 90+days Corrigan IM 76 3,788 Arrears 90+days Da Gama VM 199 199 Arrears 90+days Dewes DS 2,445 3,547 Arrears 90+days Dewes DS 6,623 9,298 Arrears 90+days

348135 349 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

Dhlomo AN 1,752 1,768 Arrears 90+days Dlamini TJ 16,278 17,171 Arrears 90+days Dlamini TJ 1,539 2,062 Arrears 90+days Dlamini IN 1,183 1,198 Arrears 90+days Gololo MJ 133 294 Arrears 90+days Greeff RJ 4,944 13,005 Arrears 90+days Griffin S 2,984 5,405 Arrears 90+days Hlomendlini IN 16 36 Arrears 90+days Khanyi CJ 837 1,171 Arrears 90+days Kubayi MT 243 642 Arrears 90+days Lichaba DL 2,347 3,214 Arrears 90+days Louw MA 1,651 2,386 Arrears 90+days Lutya RN 723 955 Arrears 90+days Madungandaba BE 15,465 18,976 Arrears 90+days Mahlanga JP 1,799 2,599 Arrears 90+days Makhubo MM 117 136 Arrears 90+days Manganyi MM 352 3,294 Arrears 90+days Mayathula-Khoza NP 360 9,789 Arrears 90+days Mendelsohn JJ 7 1,139 Arrears 90+days Mkhize DS 30,660 31,592 Arrears 90+days Moepi NR 1,167 1,220 Arrears 90+days Mogasi S 2,813 4,166 Arrears 90+days Mohlala NP 165 4,060 Arrears 90+days Mokoena A 1,648 4,945 Arrears 90+days Molope MP 7 346 Arrears 90+days Mtembu NG 3 10 Arrears 90+days Mthalane P 47 63 Arrears 90+days Mtshali EV 280 510 Arrears 90+days Ndhlovu EM 18,399 20,959 Arrears 90+days Ndhlovu EM - 4,677 Arrears 90+days Ndlela NM 500 913 Arrears 90+days Nkomo E 529 757 Arrears 90+days Nyambe AT 23 79 Arrears 90+days Ollis IM 3,097 5,401 Arrears 90+days Phakathi TZ 402 1,623 Arrears 90+days Phakathi TZ 596 4,915 Arrears 90+days Pretorius L 1,249 1,805 Arrears 90+days Putsoa A 9,565 10,418 Arrears 90+days Putsoa A 66 83 Arrears 90+days Rakitla JB 8 8 Arrears 90+days Ramadikela G 2,353 3,290 Arrears 90+days Ramakhula MS 630 650 Arrears 90+days Ramulifho N 128 2,329 Arrears 90+days Sabbagh ST 3,635 9,850 Arrears 90+days Sabbagh ST 1,349 7,633 Arrears 90+days Seboyane MA 123 1,768 Arrears 90+days Seefort CM 916 4,995 Arrears 90+days Shange BV 6,818 8,399 Arrears 90+days Sithole B 6,153 11,011 Arrears 90+days Strydom D 1,514 10,039 Arrears 90+days Sun YH 19 3,572 Arrears 90+days Sun YH 131 6,724 Arrears 90+days Sun YH 7 3,049 Arrears 90+days Tamela ZZ 1,785 24,638 Arrears 90+days Van Der Merwe MT 3,802 3,802 Arrears 90+days Van Staden JH 66 2,515 Arrears 90+days Van Zijl LA - 3,722 Arrears 90+days Zitha P 814 1,505 Arrears 90+days Zondi BD 4,122 11,563 Arrears 90+days

All amounts are disclosed in rands and are not rounded to the nearest thousand. 348 349136 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

Councillors' Arrears

The following Councillors had arrear accounts outstanding for more than 90 days as at 30 June 2008. All amounts are disclosed in rands and are not rounded to the nearest thousand.

Outstanding Outstanding Total 30 June 2008 less than 90 more than 90 (rands) days Days (rands) (rands) Bailey LR 580 3,401 3,981 Barnes AE 3,086 2,011 5,097 Bittkau R 4,860 22 4,882 Botes C - 12,667 12,667 Dewes DS 941 1,503 2,444 Dhlomo AN 160 1,518 1,678 Dlamini TJ 1,256 11,204 12,460 Hlomendlini IN 22 9 31 Khanyi CJ 192 316 508 Makhubo MM 112 5 117 Mendelsohn JJ 1,138 1 1,139 Moepie NR 623 5,370 5,993 Mokoena A 110 84 194 Mulauzi MS 860 336 1,196 Ndlovu EM 1,707 17,261 18,968 Nkomo E 118 339 457 Putsoa A 621 5,883 6,504 Seboyane MA 497 330 827 Shange BV 2,721 13,165 15,886 Strydom D 3,091 134 3,225 Tamela ZZ 3,496 100 3,596 Van Der Merwe MT 1,248 3,044 4,292 Total Councilors' Arrear Consumer Accounts 27,439 78,703 106,142

During the 2008 year the following Councillors had arrear accounts outstanding for more than 90 days.

Highest Total Comments 30 June 2008 amount (rands) outstanding > than 90 days (rands) Abrahams BL 1,025 3,006 Arrears 90+days Arrange on salary Bailey LR 4,881 5,460 Arrears 90+days Barnes AE 2,011 5,097 Arrears 90+days Bittkau R 22 4,882 Arrears 90+days Blaymire CEB 769 6,355 Arrears 90+days Arrange on salary Botes C 1,198 9,294 Arrears 90+days Arrange on salary Botes C 12,667 12,667 Arrears 90+days Cachalia MS 7 1,149 Arrears 90+days Da Gama VM 185 311 Arrears 90+days Arrange on salary Dewes DS 1,503 2,445 Arrears 90+days Dewes DS 3,457 6,840 Arrears 90+days Dhlomo AN 1,518 1,679 Arrears 90+days Dladla N J 1,040 1,895 Arrears 90+days Arrange on salary Dlamini TJ 12,579 13,850 Arrears 90+days Gololo MJ 1,370 1,538 Arrears 90+days Griffin S 814 1,482 Arrears 90+days Arrange on salary Griffin S 1,326 2,479 Arrears 90+days Hlatshwayo TL 7,472 8,044 Arrears 90+days Arrange on salary Hlomendlini IN 56 79 Arrears 90+days 350137 351 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

Khanyi CJ 7,092 7,285 Arrears 90+days Kotze SD 20 4,397 Arrears 90+days Lekgetho JK 1,917 2,534 Arrears 90+days Arrange on salary Lichaba DL 3,776 4,488 Arrears 90+days Arrange on salary Mabotja TM 7,871 16,316 Arrears 90+days Madiba DZY 13,760 14,343 Arrears 90+days Arrange on salary Makhubo MM 54 167 Arrears 90+days Masina P 929 1,542 Arrears 90+days Arrange on salary Matladi JM 589 611 Arrears 90+days Arrange on salary Mayathula-Khoza NP 3,379 9,565 Arrears 90+days Mbasela JV 501 2,505 Arrears 90+days Mendelsohn JJ 7 1,603 Arrears 90+days Mfaba WB 311 617 Arrears 90+days Arrange on salary Mlambo PE 13,930 14,515 Arrears 90+days Moepi NR 6,132 6,754 Arrears 90+days Mokoena A 1,647 1,766 Arrears 90+days Mokoena H 779 1,386 Arrears 90+days Mtembu NG 71 186 Arrears 90+days Mulauzi MS 2,814 5,149 Arrears 90+days Arrange on salary Mulauzi MS 868 1,468 Arrears 90+days Ndhlovu EM 17,261 18,968 Arrears 90+days Ndhlovu EM 510 10,214 Arrears 90+days Ndlela NM 5,126 5,245 Arrears 90+days Nemaungani MJ 43 120 Arrears 90+days Ngwedzeni N 779 1,359 Arrears 90+days Arrange on salary Nkoane MM 249 438 Arrears 90+days Arrange on salary Nkomo E 339 457 Arrears 90+days Ntombela P 977 1,091 Arrears 90+days Arrange on salary Nyambe AT 76 98 Arrears 90+days Putsoa A 6,758 7,380 Arrears 90+days Putsoa A 452 570 Arrears 90+days Rakitla JB 176 198 Arrears 90+days Ramafola SM 611 874 Arrears 90+days Sabbagh ST 1,902 7,647 Arrears 90+days Seboyane MA 476 977 Arrears 90+days Shange BV 13,165 15,885 Arrears 90+days Sithole B 1,248 7,503 Arrears 90+days Sotshantsha FN 4 25 Arrears 90+days Strydom D 134 3,224 Arrears 90+days Sun YH 7 5,822 Arrears 90+days Sun YH 1,155 4,659 Arrears 90+days Sun YH 7 3,007 Arrears 90+days Tamela ZZ 100 3,596 Arrears 90+days Van Der Merwe MT 3,044 4,292 Arrears 90+days Van Der Schyf WN 1,024 4,218 Arrears 90+days Van Zijl LA 87 3,727 Arrears 90+days

All amounts are disclosed in rands and are not rounded to the nearest thousand.

350 351138 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

57. IN-KIND DONATIONS AND ASSISTANCE

The Municipality received the following in-kind donations and assistance :

Community Development received the following:

 A new crèche to the value of R4 million on stand 4309 Vlakfontein from Al-Imdaad Foundation.

Health received the following:

 1200 Tins Nan 2 Baby Formula 400gm valued at R18,984 from Gauteng Shared Services Centre.  Gowns to be used in Clinics valued at R10,000 from PK Outfitters.  Zero Fridges for Region A to G Clinics valued at R792,984 from Gauteng Provincial Health.  CCTV Cameras, Access Control and Alarm Systems valued at R48,905 from Provicom Risk Solutions.  CPU, Monitor and Keyboard. DVD 2 Times: 74 cm TV Set, Decoder and Remote Control valued at R55,000 from Mindset Network Solutions.

JMPD received the following:

 9 x De Lux golf sets Sponsored goods valued at R15,000 from Khayalami Security Company.  Sponsored Advanced Training Course on road traffic safety valued at R45,374 from Swedish International Development Co-operation Agency (Sida).

2010 Office received the following :

 Banner put on Metro Centre to mark 500 days to the 2010 FIFA World Cup from CPM (Consolidated Media Platforms).  Drinks for celebration dinner for 500 days before the World Cup valued at R10,280 from Ballyhoo Trading Co.  Placing of advertising banners on street poles from MTN.  2010 Countdown clock at Sandton Library from MTN.

A register of all donations below R10,000 is available for inspection.

352139 353 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

58. DEFERRED INCOME

Bond Tap 13,470 - 13,470 - Other 50 1,658 - - 13,520 1,658 13,470 -

59. CHANGE IN ESTIMATE

Property, plant and equipment

In terms of GRAP 17, the depreciation method applied to assets shall be reviewed at least at each reporting date and, if there has been a significant change in the expected pattern of consumption of the future economic benefits or service potential embodied in the asset, the method shall be changed to reflect the changed pattern.

This resulted in an extension of useful life of property, plant and equipment and a reduction in the accumulated depreciation in the current financial year. The useful life adjustment amounted to R119 million and depreciation also reduced by R23 million. The average remaining useful life of property, plant and equipments increased by 14 months from 53 months to 67 months.

Intangible assets

In terms of GRAP 102, the amortisation period and the amortisation method for intangible assets with a finite useful life shall be reviewed at least at each reporting date. If the expected useful life of the asset is different from previous estimates, the amortisation period shall be changed accordingly. If there has been a change in the expected pattern of consumption of the future economic benefits or service potential embodied in the asset, the amortisation method shall be changed to reflect the changed pattern.

This resulted in an extension of useful life of intangible assets and a reduction in the accumulated amortisation in the current financial year. The net impact amounted to a R4 million reduction in amortisation. The average remaining useful life of intangible assets increased by 7 months from 22 months to 29 months.

352 353140 City of Johannesburg Metropolitan Municipality Group Annual Financial Statements for the year ended 30 June 2009 Notes to the Group Annual Financial Statements GROUP CJMM Figures in Rand thousand 2009 2008 2009 2008

60. DEVIATIONS FROM SUPPLY CHAIN MANAGEMENT REGULATIONS

In terms of Section 36 (2) of the supply chain management regulation, the total deviations for the year totals to R381,856,870.

The material deviations were as follows:

The timeframe within which the City must provide transport services for the Confederations Cup and British Lions Tour does not allow for the completion of the normal open bid process as required by the City Supply Chain Management Policy. R10,000,000.

Condone the actions of officials from the Legal and Compliance department in appointing service providers and approval of the appointment of service providers for a period of 3 years. R11,016,399.

Due to the urgency imposed by the judgement handed down by the Constitutional Court, whereby the City is obliged to provide temporary accommodation before evicting people from unsafe buildings, it was resolved to acquire the said buildings to provide such temporary accommodation in the Inner City. It should also be noted that it is impractical to follow the normal open bid process as a direct offer had to be made to the owner of the buildings through an external auction process. R39,423,177.

Ratifications of the actions of the officials from Development Planning and Urban Management Bid Evaluation Committee for relaxing the rule in so far as it relates to the provision of an accompanying letter from the bidders which indicate that all the alterations made and acknowledged accordingly by the authorised signatories. R30,000,000.

Request authorisation for the extension of the land availability agreement with a service provider to include the Itsoseng and Village Farm land portion. R140,700,000.

Johannesburg Roads Agency (Proprietary) Limited

Paragraph 12(1)(d)(i) of Government Gazette No. 27636 issued on 30 May 2005 states that a supply chain management policy must provide for the procurement of goods and services by way of a competitive bidding process. Paragraph 36 of the same gazette states that the accounting officer may dispense with the official procurement process in certain circumstances, provided that he records the reasons for any deviations and reports them to the next meeting of the board of directors and includes a note to the annual financial statements.

In terms of procurement policy framework 5 of 2000 all expenditure that exceeds R200,000 should be subject to competitive bidding process. No tender procedures and competitive bidding was followed in the following suppliers since the expenditure that was incurred on them exceeded R200,000: Mothopo Communications cc R561,688.

These goods and services were procured during the financial year under review and the process followed in procuring those goods deviated from the provisions of paragraph 12(1)(d)(i) as stated above. The reasons for these deviations were documented and reported to the board of directors who considered the deviation from the normal supply chain management regulations.

Johannesburg Tourism Company

Paragraph 12(1)(d)(i) of Government gazette No. 27636 issued on 30 May 2005 states that a supply chain management policy must provide for the procurement of goods and services by way of a competitive bidding process. Paragraph 36 of the same gazette states that the accounting officer may dispense with the official procurement process in certain circumstances, provided that he records the reasons for any deviations and reports them to the next meeting of the board of directors and includes a note to the annual financial statements.

During the financial year 2008/9 the accounting officer revoked section 36 (a)(i)(ii)of the MFMA SCM regulations. The reasons for these deviations were documented and reported to the board of directors who considered them and subsequently approved the deviation from the normal supply chain management regulations at the board meeting held on 24 February 2009.the total procurement approved by the Board amounted to R9,860,763.

354141 355 354 355 City of Johannesburg Group Annual Financial Statements for the year ended 30 June 2009

Appendix A - External Loans

Carrying Other Costs Received value of in accordanance Loan Redeemable Balance at during the Redeemed Balance at Property, with the EXTERNAL LOANS number 30/06/08 period 30/06/09 Plant & Equip MFMA R000 R000 R000 R000 R000 R000

LONG-TERM LOANS Loan stock @ 14.70% 121 31-Aug-13 30,000 - - 30,000 22,648 2,537 Total loan stock 30,000 - - 30,000 22,648 2,537 ------STRUCTURED LOANS ------ABSA 16.22% ABSA Midrand 30-Nov-11 52,646 - 1,576 51,070 48,513 4,712 ABSA 12.27% ABSA R150m 20-Dec-12 150,000 - - 150,000 139,999 52,789 Investec 11.77% Investec R100m 24-Dec-13 68,880 - 9,632 59,248 87,268 36 RMB 14.53% RMB R95m 30-Nov-14 110,904 5,614 - 116,519 86,012 8,232 RMB 15.56% RMB R210m 31-Dec-12 327,321 54,731 50,754 331,298 228,555 38,408 RMB 16.50% RMB R100m 30-Nov-14 116,891 - 4,523 112,367 91,027 46,051 SCMB 12.16% SCMB R200m 30-Sep-18 136,669 - 13,335 123,333 184,879 - CityEkurhuleni of Johannesburg 16.21% Ekurhuleni 30-Jun-11 41,125 - 22,432 18,694 173 17,081 GroupTotal Annual structured Financial loan Statementss for the year ended 30 June 2009 1,004,437 60,345 102,253 962,529 866,426 167,309 ------FUNDING FACILITY ------AppendixRMB 11.65% A - External Loans (Continued)RMB L123 30-Apr-09 17,900 - 17,900 ------TOTAL CARRIED FORWARD EXTERNAL1,052,33LOANS7 AS AT60,34530 JUNE 2008120,153 continued 992,529 889,074 169,846 Carrying Other Costs Received value of in accordanance Loan Redeemable Balance at during the Redeemed Balance at Property, with the EXTERNAL LOANS Number 30/06/08 period 30/06/09 Plant & Equip MFMA R000 R000 R000 R000 R000 R000

TOTAL BROUGHT FORWARD 1,052,337 60,345 120,153 992,529 889,074 169,846 ------DEVELOPMENT BANK OF SOUTH AFRICA ------DBSA @ 13.22% 11984 - 11993 30-Jun-14 52,268 - 6,180 46,088 69,256 - DBSA @ 10.00% 2513/103 31-Mar-09 6,929 - 6,929 - 21,654 - DBSA @ 10.00% 8056/103 30-Sep-11 25,587 - 6,442 19,145 48,125 - DBSA @ 10.00% 8250/102 31-Mar-14 4,864 - 627 4,237 16 - DBSA @ 10.00% 9005/103 31-Mar-13 171,186 - 27,909 143,277 264,187 - DBSA @ 10.00% 9337/101 30-Sep-14 19,838 - 2,297 17,541 38 - DBSA @ 10.00% 9637/102 31-Mar-14 2,377 - 306 2,071 1,752 - DBSA @ 10.00% 10295 30-Jun-16 1,260 - 109 1,151 - - DBSA @ 9.39% 13541/1 30-Sep-20 123,854 - 10,111 113,744 149,723 - DBSA @ 16.55% 12716 31-Dec-12 185 - 30 154 22 - DBSA @ 16.55% 12717 31-Dec-12 343 - 57 286 269 - DBSA @ 16.15% 12032 31-Dec-10 276 - 98 178 496 - DBSA @ 16.67% 12033 31-Dec-11 554 - 128 426 - - DBSA @ 16.67% 12034 31-Dec-11 298 - 69 229 495 - DBSA @ 15.26% 12035 31-Dec-11 89 - 21 68 149 - DBSA @ 15.26% 12036 31-Dec-11 415 - 98 317 738 - DBSA @ 15.26% 12037 31-Dec-12 1,084 - 183 901 - - DBSA @ 15.26% 12038 31-Dec-12 253 - 43 211 372 - DBSA @ 15.26% 12388 31-Dec-12 1,290 - 218 1,072 718 - DBSA @ 15.74% 12208 31-Dec-09 1,699 - 1,089 610 - - DBSA @ 12.00% 9726/104 30-Sep-14 2,096 - 63 2,033 118 - DBSA @ 16.50% 11064/102 31-Mar-20 1,990 - 217 1,773 - - DBSA @ 10.63% 11073/101 30-Sep-13 7,492 - 1,362 6,129 14,891 - DBSA @ 10.63% 11073/2 30-Sep-13 22,269 - 4,049 18,220 40,895 - DBSA @ 11.37% 103345/1 30-Jun-29 - 600,000 - 600,000 600,000,000 - DBSA @ 6.75% 103345/2 30-Jun-29 - 200,000 - 200,000 200,000,000 - DBSA @ 8.50% 101963/1 31-Dec-09 - 7,822 - 7,822 7,821 - DBSA @ 8.50% 101963/2 31-Dec-09 - 11,732 - 11,732 11,732 - Total Development Bank of South Africa 448,494 819,554 68,634 1,199,414 800,633,467 ------MUNICIPAL BONDS ------Bond @ 11.95% COJ01 13-Apr-10 1,000,000 - - 1,000,000 912,368 7,268 Bond @ 11.90% COJ02 30-Jun-16 1,000,000 - - 1,000,000 918,056 9,007 Bond @ 9.70% COJ03 26-Apr-13 700,000 - - 700,000 638,025 3,586 Bond @ 9.0% COJ04 5-Jun-18 1,200,000 533,000 - 1,733,000 1,001,852 1,956 Bond @ 12.105% COJ05 5-Jun-23 1,800,000 468,000 - 2,268,000 487,005 3,241 Bond @ 10.815% COJ06 5-Dec-15 - 900,000 - 900,000 900,000,000 - Total municipal bonds 5,700,000 1,901,000 - 7,601,000 903,957,306 25,058

JOZI BONDS Jozi Bond @ 12.38% JOZI 01 21-Jun-09 8,843 - - 8,843 6,905 1,409 Jozi Bond @ 12.58% JOZI 02 21-Jun-10 20,722 - - 20,722 16,001 3,302 Jozi Bond @ 12,78% JOZI 03 21-Jun-12 127,300 - 57,048 70,252 101,982 20,288 Total jozi bonds 156,865 - 57,048 99,817 124,888 24,999 ------OTHER LOANS ------ABSA 8.90% ABSA Springfield 29-Aug-15 1,040 - 130 910 1,628 - Calyon French Loan @9.379% Calyon 2-Jul-18 362,800 - 36,280 326,520 318,059 - INCA loan @ 14.59% JMBS-00-0001 31-Dec-11 153,826 - 33,363 120,463 120,462 - RMB @ 12.0748% Pikitup 30-Jun-09 27,776 - 18,096 9,681 9,410 - RMB @ 11.5951% Pikitup 30-Dec-09 5,904 - 1,231 4,673 2,597 - 551,346 - 89,101 462,246 452,156 ------TOTAL EXTERNAL LOANS 7,909,042 2,780,899 334,936 10,355,006 1,706,056,891 219,903 356 357 City of Johannesburg Group Annual Financial Statements for the year ended 30 June 2009

Appendix A - External Loans

Carrying Other Costs Received value of in accordanance Loan Redeemable Balance at during the Redeemed Balance at Property, with the EXTERNAL LOANS number 30/06/08 period 30/06/09 Plant & Equip MFMA R000 R000 R000 R000 R000 R000

LONG-TERM LOANS Loan stock @ 14.70% 121 31-Aug-13 30,000 - - 30,000 22,648 2,537 Total loan stock 30,000 - - 30,000 22,648 2,537 ------STRUCTURED LOANS ------ABSA 16.22% ABSA Midrand 30-Nov-11 52,646 - 1,576 51,070 48,513 4,712 ABSA 12.27% ABSA R150m 20-Dec-12 150,000 - - 150,000 139,999 52,789 Investec 11.77% Investec R100m 24-Dec-13 68,880 - 9,632 59,248 87,268 36 RMB 14.53% RMB R95m 30-Nov-14 110,904 5,614 - 116,519 86,012 8,232 RMB 15.56% RMB R210m 31-Dec-12 327,321 54,731 50,754 331,298 228,555 38,408 RMB 16.50% RMB R100m 30-Nov-14 116,891 - 4,523 112,367 91,027 46,051 SCMB 12.16% SCMB R200m 30-Sep-18 136,669 - 13,335 123,333 184,879 - CityEkurhuleni of Johannesburg 16.21% Ekurhuleni 30-Jun-11 41,125 - 22,432 18,694 173 17,081 GroupTotal Annual structured Financial loan Statementss for the year ended 30 June 2009 1,004,437 60,345 102,253 962,529 866,426 167,309 ------FUNDING FACILITY ------AppendixRMB 11.65% A - External Loans (Continued)RMB L123 30-Apr-09 17,900 - 17,900 ------TOTAL CARRIED FORWARD EXTERNAL1,052,33LOANS7 AS AT60,34530 JUNE 2008120,153 continued 992,529 889,074 169,846 Carrying Other Costs Received value of in accordanance Loan Redeemable Balance at during the Redeemed Balance at Property, with the EXTERNAL LOANS Number 30/06/08 period 30/06/09 Plant & Equip MFMA R000 R000 R000 R000 R000 R000

TOTAL BROUGHT FORWARD 1,052,337 60,345 120,153 992,529 889,074 169,846 ------DEVELOPMENT BANK OF SOUTH AFRICA ------DBSA @ 13.22% 11984 - 11993 30-Jun-14 52,268 - 6,180 46,088 69,256 - DBSA @ 10.00% 2513/103 31-Mar-09 6,929 - 6,929 - 21,654 - DBSA @ 10.00% 8056/103 30-Sep-11 25,587 - 6,442 19,145 48,125 - DBSA @ 10.00% 8250/102 31-Mar-14 4,864 - 627 4,237 16 - DBSA @ 10.00% 9005/103 31-Mar-13 171,186 - 27,909 143,277 264,187 - DBSA @ 10.00% 9337/101 30-Sep-14 19,838 - 2,297 17,541 38 - DBSA @ 10.00% 9637/102 31-Mar-14 2,377 - 306 2,071 1,752 - DBSA @ 10.00% 10295 30-Jun-16 1,260 - 109 1,151 - - DBSA @ 9.39% 13541/1 30-Sep-20 123,854 - 10,111 113,744 149,723 - DBSA @ 16.55% 12716 31-Dec-12 185 - 30 154 22 - DBSA @ 16.55% 12717 31-Dec-12 343 - 57 286 269 - DBSA @ 16.15% 12032 31-Dec-10 276 - 98 178 496 - DBSA @ 16.67% 12033 31-Dec-11 554 - 128 426 - - DBSA @ 16.67% 12034 31-Dec-11 298 - 69 229 495 - DBSA @ 15.26% 12035 31-Dec-11 89 - 21 68 149 - DBSA @ 15.26% 12036 31-Dec-11 415 - 98 317 738 - DBSA @ 15.26% 12037 31-Dec-12 1,084 - 183 901 - - DBSA @ 15.26% 12038 31-Dec-12 253 - 43 211 372 - DBSA @ 15.26% 12388 31-Dec-12 1,290 - 218 1,072 718 - DBSA @ 15.74% 12208 31-Dec-09 1,699 - 1,089 610 - - DBSA @ 12.00% 9726/104 30-Sep-14 2,096 - 63 2,033 118 - DBSA @ 16.50% 11064/102 31-Mar-20 1,990 - 217 1,773 - - DBSA @ 10.63% 11073/101 30-Sep-13 7,492 - 1,362 6,129 14,891 - DBSA @ 10.63% 11073/2 30-Sep-13 22,269 - 4,049 18,220 40,895 - DBSA @ 11.37% 103345/1 30-Jun-29 - 600,000 - 600,000 600,000,000 - DBSA @ 6.75% 103345/2 30-Jun-29 - 200,000 - 200,000 200,000,000 - DBSA @ 8.50% 101963/1 31-Dec-09 - 7,822 - 7,822 7,821 - DBSA @ 8.50% 101963/2 31-Dec-09 - 11,732 - 11,732 11,732 - Total Development Bank of South Africa 448,494 819,554 68,634 1,199,414 800,633,467 ------MUNICIPAL BONDS ------Bond @ 11.95% COJ01 13-Apr-10 1,000,000 - - 1,000,000 912,368 7,268 Bond @ 11.90% COJ02 30-Jun-16 1,000,000 - - 1,000,000 918,056 9,007 Bond @ 9.70% COJ03 26-Apr-13 700,000 - - 700,000 638,025 3,586 Bond @ 9.0% COJ04 5-Jun-18 1,200,000 533,000 - 1,733,000 1,001,852 1,956 Bond @ 12.105% COJ05 5-Jun-23 1,800,000 468,000 - 2,268,000 487,005 3,241 Bond @ 10.815% COJ06 5-Dec-15 - 900,000 - 900,000 900,000,000 - Total municipal bonds 5,700,000 1,901,000 - 7,601,000 903,957,306 25,058

JOZI BONDS Jozi Bond @ 12.38% JOZI 01 21-Jun-09 8,843 - - 8,843 6,905 1,409 Jozi Bond @ 12.58% JOZI 02 21-Jun-10 20,722 - - 20,722 16,001 3,302 Jozi Bond @ 12,78% JOZI 03 21-Jun-12 127,300 - 57,048 70,252 101,982 20,288 Total jozi bonds 156,865 - 57,048 99,817 124,888 24,999 ------OTHER LOANS ------ABSA 8.90% ABSA Springfield 29-Aug-15 1,040 - 130 910 1,628 - Calyon French Loan @9.379% Calyon 2-Jul-18 362,800 - 36,280 326,520 318,059 - INCA loan @ 14.59% JMBS-00-0001 31-Dec-11 153,826 - 33,363 120,463 120,462 - RMB @ 12.0748% Pikitup 30-Jun-09 27,776 - 18,096 9,681 9,410 - RMB @ 11.5951% Pikitup 30-Dec-09 5,904 - 1,231 4,673 2,597 - 551,346 - 89,101 462,246 452,156 ------TOTAL EXTERNAL LOANS 7,909,042 2,780,899 334,936 10,355,006 1,706,056,891 219,903 356 357 City of Johannesburg Group Annual Financial Statements for the year ended 30 June 2009

Appendix B ANALYSIS OF PROPERTY, PLANT AND EQUIPMENT

Cost Accumulated Depreciation Opening Balance Additions Founds Disposals Transfers Closing Balance Opening Balance Disposals Transfers Depreciation Impairment Closing Balance Carrying Value R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 Land and Buildings Land 5,364,552 53,148 437,619 (22,809) 55,127 5,887,637 ‐ ‐ ‐ ‐ ‐ ‐ 5,887,637 Buildings 5,009,920 171,563 357 (1,347) 618,824 5,799,316 (1,525,273) (5,260) (51,390) (147,109) (21,832) (1,750,863) 4,048,453 10,374,472 224,711 437,976 (24,156) 673,951 11,686,953 (1,525,273) (5,260) (51,390) (147,109) (21,832) (1,750,863) 9,936,090 Infrastructure Roads, bridges & storm water 1,972,982 49,093 ‐ ‐ 251,348 2,273,423 (601,569) ‐ (43,879) (117,298) (4,174) (766,920) 1,506,503 Pavements and kerbs 84,148 5,747 ‐ ‐ 5,605 95,500 (22,192) ‐ (902) (3,338) (57) (26,489) 69,011 Gas ‐ ‐ ‐ ‐ 5,312 5,312 ‐ ‐ (3,683) (47) ‐ (3,730) 1,582 Water nerwork 1,520,626 89,320 ‐ ‐ 228,569 1,838,515 (129,543) ‐ ‐ (39,654) ‐ (169,197) 1,669,318 Electricity mains 2,838,599 18,224 ‐ (22,420) 2,106,725 4,941,128 (402,728) ‐ (263) (86,720) (18) (489,729) 4,451,399 Electricity peak‐load equipment 4,855 ‐ ‐ ‐ (4,855) 0 (3,226) ‐ 3,226 ‐ ‐ ‐ 0 Sewerage purification & reticulation 1,336,441 70,138 ‐ ‐ 54,706 1,461,285 (144,998) ‐ (78) (26,874) ‐ (171,950) 1,289,336 7,757,651 232,522 ‐ (22,420) 2,647,410 10,615,163 (1,304,255) ‐ (45,580) (273,931) (4,249) (1,628,014) 8,987,149 Community assets Parks, gardens, sport fields & recreation 193,648 7,613 ‐ (8) 4,531 205,784 (45,043) 8 (4,314) (8,142) (35) (57,527) 148,257 Other 277,382 27,575 ‐ (22) 29,690 334,625 (109,310) 22 3,956 (15,675) (107) (121,113) 213,511 471,030 35,188 ‐ (30) 34,220 540,408 (154,353) 30 (358) (23,817) (142) (178,640) 361,768 Heritage assets Historic buildings 85,444 ‐ ‐ (36) 0 85,408 ‐ ‐ (7,720) ‐ ‐ (7,720) 77,688 Artwork 14,657 17 ‐ ‐ 1,201 15,875 (20,180) ‐ 6,519 ‐ ‐ (13,661) 2,214 100,101 17 ‐ (36) 1,201 101,283 (20,180) ‐ (1,201) ‐ ‐ (21,381) 79,902 Specialised vehicles Buses 507,225 9,890 ‐ (21,368) 15 495,762 (259,418) 16,147 (2) (40,399) ‐ (283,672) 212,090 507,225 9,890 ‐ (21,368) 15 495,762 (259,418) 16,147 (2) (40,399) ‐ (283,672) 212,090 Other assets Other motor vehicles 12,749 1,634 ‐ (443) 1,073 15,013 (7,051) 1,114 (573) (835) (2) (7,347) 7,666 Furniture and fittings 387,304 27,172 321 (5,901) 14,980 423,876 (215,535) 3,865 1,964 (9,314) (3,201) (222,221) 201,655 Bins & containers 142,765 572 ‐ ‐ 147 143,484 (66,253) ‐ (143) (21,994) (96) (88,486) 54,998 Emergency equipment 20,156 2,588 ‐ (519) 989 23,213 (8,703) 367 (149) (1) (589) (9,075) 14,138 Other plant & equipment 964,509 101,861 ‐ (5,376) 246,713 1,307,707 (361,615) 4,552 (787) (71,849) (184) (429,883) 877,824 Computer equipment 442,947 33,762 30 (12,102) 19,312 483,949 (209,873) 5,225 30 (40,873) (1,131) (246,622) 237,327 Other office equipment 133,849 51,870 17 (4,125) 7,942 189,553 (73,858) 3,350 (7,548) (32,641) (43) (110,740) 78,813 Other land and buildings ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Landfill sites 119,361 49,374 ‐ ‐ ‐ 168,735 (81,473) (1,714) ‐ (5,387) ‐ (88,574) 80,161 Work in progress 7,446,687 5,599,594 ‐ ‐ (3,672,304) 9,373,977 ‐ ‐ ‐ ‐ ‐ ‐ 9,373,978 Other 11,715 2,752 ‐ (1,902) (28) 12,537 (6,765) (2) 13 (1,112) ‐ (7,866) 4,671 9,682,042 5,871,179 368 (30,368) (3,381,176) 12,142,045 (1,031,126) 16,756 (7,193) (184,006) (5,246) (1,210,814) 10,931,232

Total Property, Plant and Equipment 28,892,521 6,373,507 438,344 (98,378) (24,378) 35,581,615 (4,294,606) 27,673 (105,723) (669,262) (31,469) (5,073,384) 30,508,231

Total Intangible Assets 519,870 96,456 ‐ (237) 70,092 686,181 (284,006) 232 (36) (58,015) ‐ (341,825) 344,356

Total Investment Properties 1,278,099 ‐ 143 (248) 59,925 1,337,919 (80,161) 24 120 (6,332) ‐ (86,349) 1,251,570

Total 30,690,490 6,469,963 438,487 (98,863) 105,639 37,605,716 (4,658,773) 27,929 (105,639) (733,609) (31,469) (5,501,561) 32,104,155

358 359 City of Johannesburg Group Annual Financial Statements for the year ended 30 June 2009

Appendix B ANALYSIS OF PROPERTY, PLANT AND EQUIPMENT

Cost Accumulated Depreciation Opening Balance Additions Founds Disposals Transfers Closing Balance Opening Balance Disposals Transfers Depreciation Impairment Closing Balance Carrying Value R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 Land and Buildings Land 5,364,552 53,148 437,619 (22,809) 55,127 5,887,637 ‐ ‐ ‐ ‐ ‐ ‐ 5,887,637 Buildings 5,009,920 171,563 357 (1,347) 618,824 5,799,316 (1,525,273) (5,260) (51,390) (147,109) (21,832) (1,750,863) 4,048,453 10,374,472 224,711 437,976 (24,156) 673,951 11,686,953 (1,525,273) (5,260) (51,390) (147,109) (21,832) (1,750,863) 9,936,090 Infrastructure Roads, bridges & storm water 1,972,982 49,093 ‐ ‐ 251,348 2,273,423 (601,569) ‐ (43,879) (117,298) (4,174) (766,920) 1,506,503 Pavements and kerbs 84,148 5,747 ‐ ‐ 5,605 95,500 (22,192) ‐ (902) (3,338) (57) (26,489) 69,011 Gas ‐ ‐ ‐ ‐ 5,312 5,312 ‐ ‐ (3,683) (47) ‐ (3,730) 1,582 Water nerwork 1,520,626 89,320 ‐ ‐ 228,569 1,838,515 (129,543) ‐ ‐ (39,654) ‐ (169,197) 1,669,318 Electricity mains 2,838,599 18,224 ‐ (22,420) 2,106,725 4,941,128 (402,728) ‐ (263) (86,720) (18) (489,729) 4,451,399 Electricity peak‐load equipment 4,855 ‐ ‐ ‐ (4,855) 0 (3,226) ‐ 3,226 ‐ ‐ ‐ 0 Sewerage purification & reticulation 1,336,441 70,138 ‐ ‐ 54,706 1,461,285 (144,998) ‐ (78) (26,874) ‐ (171,950) 1,289,336 7,757,651 232,522 ‐ (22,420) 2,647,410 10,615,163 (1,304,255) ‐ (45,580) (273,931) (4,249) (1,628,014) 8,987,149 Community assets Parks, gardens, sport fields & recreation 193,648 7,613 ‐ (8) 4,531 205,784 (45,043) 8 (4,314) (8,142) (35) (57,527) 148,257 Other 277,382 27,575 ‐ (22) 29,690 334,625 (109,310) 22 3,956 (15,675) (107) (121,113) 213,511 471,030 35,188 ‐ (30) 34,220 540,408 (154,353) 30 (358) (23,817) (142) (178,640) 361,768 Heritage assets Historic buildings 85,444 ‐ ‐ (36) 0 85,408 ‐ ‐ (7,720) ‐ ‐ (7,720) 77,688 Artwork 14,657 17 ‐ ‐ 1,201 15,875 (20,180) ‐ 6,519 ‐ ‐ (13,661) 2,214 100,101 17 ‐ (36) 1,201 101,283 (20,180) ‐ (1,201) ‐ ‐ (21,381) 79,902 Specialised vehicles Buses 507,225 9,890 ‐ (21,368) 15 495,762 (259,418) 16,147 (2) (40,399) ‐ (283,672) 212,090 507,225 9,890 ‐ (21,368) 15 495,762 (259,418) 16,147 (2) (40,399) ‐ (283,672) 212,090 Other assets Other motor vehicles 12,749 1,634 ‐ (443) 1,073 15,013 (7,051) 1,114 (573) (835) (2) (7,347) 7,666 Furniture and fittings 387,304 27,172 321 (5,901) 14,980 423,876 (215,535) 3,865 1,964 (9,314) (3,201) (222,221) 201,655 Bins & containers 142,765 572 ‐ ‐ 147 143,484 (66,253) ‐ (143) (21,994) (96) (88,486) 54,998 Emergency equipment 20,156 2,588 ‐ (519) 989 23,213 (8,703) 367 (149) (1) (589) (9,075) 14,138 Other plant & equipment 964,509 101,861 ‐ (5,376) 246,713 1,307,707 (361,615) 4,552 (787) (71,849) (184) (429,883) 877,824 Computer equipment 442,947 33,762 30 (12,102) 19,312 483,949 (209,873) 5,225 30 (40,873) (1,131) (246,622) 237,327 Other office equipment 133,849 51,870 17 (4,125) 7,942 189,553 (73,858) 3,350 (7,548) (32,641) (43) (110,740) 78,813 Other land and buildings ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Landfill sites 119,361 49,374 ‐ ‐ ‐ 168,735 (81,473) (1,714) ‐ (5,387) ‐ (88,574) 80,161 Work in progress 7,446,687 5,599,594 ‐ ‐ (3,672,304) 9,373,977 ‐ ‐ ‐ ‐ ‐ ‐ 9,373,978 Other 11,715 2,752 ‐ (1,902) (28) 12,537 (6,765) (2) 13 (1,112) ‐ (7,866) 4,671 9,682,042 5,871,179 368 (30,368) (3,381,176) 12,142,045 (1,031,126) 16,756 (7,193) (184,006) (5,246) (1,210,814) 10,931,232

Total Property, Plant and Equipment 28,892,521 6,373,507 438,344 (98,378) (24,378) 35,581,615 (4,294,606) 27,673 (105,723) (669,262) (31,469) (5,073,384) 30,508,231

Total Intangible Assets 519,870 96,456 ‐ (237) 70,092 686,181 (284,006) 232 (36) (58,015) ‐ (341,825) 344,356

Total Investment Properties 1,278,099 ‐ 143 (248) 59,925 1,337,919 (80,161) 24 120 (6,332) ‐ (86,349) 1,251,570

Total 30,690,490 6,469,963 438,487 (98,863) 105,639 37,605,716 (4,658,773) 27,929 (105,639) (733,609) (31,469) (5,501,561) 32,104,155

358 359 City of Johannesburg Group Annual Financial Statements for the year ended 30 June 2009

Appendix C SEGMENTAL ANALYSIS PROPERTY PLANT AND EQUIPMENT

Cost Accumulated Depreciation

Opening Balance Additions Founds Disposals Transfers Closing Balance Opening Balance Disposals Transfers Depreciation Impairment deficit Closing Balance Carrying Value R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY 19,275,265 4,314,022 438,346 (35,461) 103,508 24,095,681 (2,689,350) 8,217 (103,507) (322,070) (31,173) (3,137,883) 20,957,798 Environmental Protection 9,073 3,756 1 (181) (7) 12,643 (3,222) 6 ‐ (474) (21) (3,711) 8,932 Infrastructure and Services 6,546 260 ‐ (26) 26 6,804 (4,989) 9 ‐ (142) (14) (5,135) 1,669 Transportation 638,967 1,256,021 ‐ (76) ‐ 1,894,912 (1,354) 48 ‐ (72) (5) (1,383) 1,893,529 Executive Mayor and City Manager 2,060,345 1,769,487 ‐ (284) 10,489 3,840,037 (11,919) 178 (103,507) (26,932) (4,678) (146,858) 3,693,179 Finance, Revenue and Economic Development 76,129 35,589 ‐ (664) 100,013 211,067 (116,053) 407 ‐ (26,075) (100) (141,821) 69,245 Development Planning & Urban Management 1,270,433 342,246 ‐ (960) (607) 1,611,111 (259,069) 688 ‐ (30,210) (261) (288,852) 1,322,259 Health 140,938 7,125 ‐ (2,202) 10 145,871 (66,888) 1,546 ‐ (561) (485) (66,388) 79,483 Community Development 1,419,560 211,943 ‐ (2,452) (4) 1,629,047 (400,104) 1,875 ‐ (24,880) (3,076) (426,185) 1,202,862 Housing 1,603,457 289,616 ‐ (279) 679 1,893,473 (603,823) 182 ‐ (38,103) (978) (642,722) 1,250,750 Corporate Support and Shared Services 147,228 22,429 ‐ (323) (51) 169,283 (99,808) 269 ‐ (748) (1,027) (101,313) 67,969 Johannesburg Metropolitan Police Department 196,336 2,360 225 (1,272) ‐ 197,650 (115,861) 972 ‐ (9,770) (8,895) (133,554) 64,096 Emergency Management Services 138,777 3,058 ‐ (1,166) ‐ 140,670 (72,271) 922 ‐ (1,293) (1,196) (73,838) 66,832 Agencies 10,799,659 360,393 438,120 (24,384) ‐ 11,573,788 (723,596) 275 ‐ (152,362) (4,049) (879,733) 10,694,055 Speaker: Legislative Arm of Council 236,733 859 ‐ (80) ‐ 237,513 (82,433) 49 ‐ (7,270) (778) (90,431) 147,081 Economic Development 15,524 3,900 ‐ (47) 3 19,381 (2,409) 15 ‐ (145) (190) (2,729) 16,651 Revenue and Customer Relations 515,560 4,980 ‐ (1,065) (7,043) 512,432 (125,553) 777 ‐ (3,033) (5,420) (133,229) 379,204

MUNICIPAL ENTITIES 11,415,225 2,155,941 141 (63,402) 2,131 13,510,036 (1,969,423) 19,712 (2,132) (411,536) (296) (2,363,675) 11,146,361 City of Johannesburg Property Company (Pty) Ltd 13,385 4,639 ‐ (1,168) ‐ 16,857 (3,425) 754 ‐ (1,247) ‐ (3,918) 12,939 City Power Johannesburg (Pty) Ltd 4,977,207 1,096,742 ‐ (27,070) ‐ 6,046,879 (566,036) (1) ‐ (116,223) ‐ (682,260) 5,364,619 Johannesburg City Housing Company 10,395 ‐ ‐ ‐ ‐ 10,395 (232) ‐ ‐ ‐ ‐ (232) 10,163 Johannesburg City Parks 67,462 11,885 ‐ (3,998) ‐ 75,349 (19,747) 2,952 ‐ (9,427) ‐ (26,222) 49,127 Johannesburg Development Agency (Pty) Ltd 5,035 4,966 ‐ (165) ‐ 9,835 (1,286) 65 ‐ (920) ‐ (2,140) 7,695 Johannesburg Housing Company (Pty) Ltd 163,907 145,533 ‐ (103) ‐ 309,337 (5,176) 94 ‐ (5,665) ‐ (10,747) 298,590 Johannesburg Metropolitan Bus Services (Pty) Ltd 582,532 15,407 ‐ (26,000) ‐ 571,939 (294,106) 19,772 ‐ (46,071) ‐ (320,405) 251,534 Johannesburg Roads Agency (Pty) Ltd 149,002 11,156 ‐ ‐ 2,132 162,290 (21,216) ‐ (2,132) (31,046) ‐ (54,394) 107,896 Johannesburg Tourism Company 5,331 5,747 ‐ (131) ‐ 10,947 (2,102) ‐ ‐ (1,731) ‐ (3,833) 7,114 Johannesburg Water (Pty) Ltd 4,559,755 727,213 ‐ (508) (1) 5,286,459 (694,191) 233 ‐ (146,511) ‐ (840,469) 4,445,990 Metropolitan Trading Company (Pty) Ltd 124,735 1,272 141 ‐ ‐ 126,148 (75,352) ‐ ‐ (1,243) (296) (76,891) 49,257 Pikitup Johannesburg (Pty) Ltd 435,060 95,791 ‐ (543) ‐ 530,308 (235,735) (7,232) ‐ (35,821) ‐ (278,788) 251,520 Roodepoort City Theatre (Pty) Ltd 3,000 280 ‐ ‐ ‐ 3,280 (952) ‐ ‐ (297) ‐ (1,248) 2,032 The Johannesburg Civic Theatre (Pty) Ltd 9,766 608 ‐ (103) ‐ 10,271 (4,384) ‐ ‐ (2,301) ‐ (6,685) 3,586 The Johannesburg Fresh Produce Market (Pty) Ltd 298,444 33,730 ‐ (3,572) ‐ 328,602 (41,956) 3,048 ‐ (11,734) ‐ (50,643) 277,960 The Johannesburg Zoo 10,209 972 ‐ (41) ‐ 11,140 (3,528) 27 ‐ (1,299) ‐ (4,800) 6,340

Total 30,690,490 6,469,963 438,487 (98,863) 105,639 37,605,717 (4,658,773) 27,929 (105,639) (733,606) (31,469) (5,501,561) 32,104,154

360 361 City of Johannesburg Group Annual Financial Statements for the year ended 30 June 2009

Appendix C SEGMENTAL ANALYSIS PROPERTY PLANT AND EQUIPMENT

Cost Accumulated Depreciation

Opening Balance Additions Founds Disposals Transfers Closing Balance Opening Balance Disposals Transfers Depreciation Impairment deficit Closing Balance Carrying Value R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY 19,275,265 4,314,022 438,346 (35,461) 103,508 24,095,681 (2,689,350) 8,217 (103,507) (322,070) (31,173) (3,137,883) 20,957,798 Environmental Protection 9,073 3,756 1 (181) (7) 12,643 (3,222) 6 ‐ (474) (21) (3,711) 8,932 Infrastructure and Services 6,546 260 ‐ (26) 26 6,804 (4,989) 9 ‐ (142) (14) (5,135) 1,669 Transportation 638,967 1,256,021 ‐ (76) ‐ 1,894,912 (1,354) 48 ‐ (72) (5) (1,383) 1,893,529 Executive Mayor and City Manager 2,060,345 1,769,487 ‐ (284) 10,489 3,840,037 (11,919) 178 (103,507) (26,932) (4,678) (146,858) 3,693,179 Finance, Revenue and Economic Development 76,129 35,589 ‐ (664) 100,013 211,067 (116,053) 407 ‐ (26,075) (100) (141,821) 69,245 Development Planning & Urban Management 1,270,433 342,246 ‐ (960) (607) 1,611,111 (259,069) 688 ‐ (30,210) (261) (288,852) 1,322,259 Health 140,938 7,125 ‐ (2,202) 10 145,871 (66,888) 1,546 ‐ (561) (485) (66,388) 79,483 Community Development 1,419,560 211,943 ‐ (2,452) (4) 1,629,047 (400,104) 1,875 ‐ (24,880) (3,076) (426,185) 1,202,862 Housing 1,603,457 289,616 ‐ (279) 679 1,893,473 (603,823) 182 ‐ (38,103) (978) (642,722) 1,250,750 Corporate Support and Shared Services 147,228 22,429 ‐ (323) (51) 169,283 (99,808) 269 ‐ (748) (1,027) (101,313) 67,969 Johannesburg Metropolitan Police Department 196,336 2,360 225 (1,272) ‐ 197,650 (115,861) 972 ‐ (9,770) (8,895) (133,554) 64,096 Emergency Management Services 138,777 3,058 ‐ (1,166) ‐ 140,670 (72,271) 922 ‐ (1,293) (1,196) (73,838) 66,832 Agencies 10,799,659 360,393 438,120 (24,384) ‐ 11,573,788 (723,596) 275 ‐ (152,362) (4,049) (879,733) 10,694,055 Speaker: Legislative Arm of Council 236,733 859 ‐ (80) ‐ 237,513 (82,433) 49 ‐ (7,270) (778) (90,431) 147,081 Economic Development 15,524 3,900 ‐ (47) 3 19,381 (2,409) 15 ‐ (145) (190) (2,729) 16,651 Revenue and Customer Relations 515,560 4,980 ‐ (1,065) (7,043) 512,432 (125,553) 777 ‐ (3,033) (5,420) (133,229) 379,204

MUNICIPAL ENTITIES 11,415,225 2,155,941 141 (63,402) 2,131 13,510,036 (1,969,423) 19,712 (2,132) (411,536) (296) (2,363,675) 11,146,361 City of Johannesburg Property Company (Pty) Ltd 13,385 4,639 ‐ (1,168) ‐ 16,857 (3,425) 754 ‐ (1,247) ‐ (3,918) 12,939 City Power Johannesburg (Pty) Ltd 4,977,207 1,096,742 ‐ (27,070) ‐ 6,046,879 (566,036) (1) ‐ (116,223) ‐ (682,260) 5,364,619 Johannesburg City Housing Company 10,395 ‐ ‐ ‐ ‐ 10,395 (232) ‐ ‐ ‐ ‐ (232) 10,163 Johannesburg City Parks 67,462 11,885 ‐ (3,998) ‐ 75,349 (19,747) 2,952 ‐ (9,427) ‐ (26,222) 49,127 Johannesburg Development Agency (Pty) Ltd 5,035 4,966 ‐ (165) ‐ 9,835 (1,286) 65 ‐ (920) ‐ (2,140) 7,695 Johannesburg Housing Company (Pty) Ltd 163,907 145,533 ‐ (103) ‐ 309,337 (5,176) 94 ‐ (5,665) ‐ (10,747) 298,590 Johannesburg Metropolitan Bus Services (Pty) Ltd 582,532 15,407 ‐ (26,000) ‐ 571,939 (294,106) 19,772 ‐ (46,071) ‐ (320,405) 251,534 Johannesburg Roads Agency (Pty) Ltd 149,002 11,156 ‐ ‐ 2,132 162,290 (21,216) ‐ (2,132) (31,046) ‐ (54,394) 107,896 Johannesburg Tourism Company 5,331 5,747 ‐ (131) ‐ 10,947 (2,102) ‐ ‐ (1,731) ‐ (3,833) 7,114 Johannesburg Water (Pty) Ltd 4,559,755 727,213 ‐ (508) (1) 5,286,459 (694,191) 233 ‐ (146,511) ‐ (840,469) 4,445,990 Metropolitan Trading Company (Pty) Ltd 124,735 1,272 141 ‐ ‐ 126,148 (75,352) ‐ ‐ (1,243) (296) (76,891) 49,257 Pikitup Johannesburg (Pty) Ltd 435,060 95,791 ‐ (543) ‐ 530,308 (235,735) (7,232) ‐ (35,821) ‐ (278,788) 251,520 Roodepoort City Theatre (Pty) Ltd 3,000 280 ‐ ‐ ‐ 3,280 (952) ‐ ‐ (297) ‐ (1,248) 2,032 The Johannesburg Civic Theatre (Pty) Ltd 9,766 608 ‐ (103) ‐ 10,271 (4,384) ‐ ‐ (2,301) ‐ (6,685) 3,586 The Johannesburg Fresh Produce Market (Pty) Ltd 298,444 33,730 ‐ (3,572) ‐ 328,602 (41,956) 3,048 ‐ (11,734) ‐ (50,643) 277,960 The Johannesburg Zoo 10,209 972 ‐ (41) ‐ 11,140 (3,528) 27 ‐ (1,299) ‐ (4,800) 6,340

Total 30,690,490 6,469,963 438,487 (98,863) 105,639 37,605,717 (4,658,773) 27,929 (105,639) (733,606) (31,469) (5,501,561) 32,104,154

360 361 Appendix D SEGMENTAL FINANCIAL PERFORMANCE

CONSOL CORE RCIVIC JFPM SOCH MBUS PIKITU POWER PROPTY WATER ZOO MTRADE TOURIS JRA JCIVIC PARKS JDA R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000

Revenue 23,320,728 12,189,916 435 23,246 31,528 2,949 1,092,044 5,734,554 1,465 3,708,631 1,549 7,619 23,849 14,259 9,484 449,149 30,051 Other income 2,289,934 317,777 9,164 179,660 26,361 373,712 (6,822) 261,438 65,916 259,714 52,312 50,231 61,698 477,423 33,119 66,000 62,231

Total Revenue 25,610,662 12,507,693 9,599 202,906 57,889 376,661 1,085,222 5,995,992 67,381 3,968,345 53,861 57,850 85,547 491,682 42,603 515,149 92,282

Expenses (24,059,705) (11,295,114) (9,379) (168,327) (55,373) (395,841) (1,074,405) (5,781,630) (50,863) (3,805,776) (53,050) (59,146) (98,755) (568,233) (47,245) (512,489) (84,079)

Net surplus/ (deficit) for the year 1,550,957 1,212,579 220 34,579 2,516 (19,180) 10,817 214,362 16,518 162,569 811 (1,296) (13,208) (76,551) (4,642) 2,660 8,203

Taxation (14,611) ‐ ‐ (12,761) 267 ‐ (6,364) ‐ (4,311) ‐ ‐ ‐ ‐ 7,258 1,300 ‐ ‐

Aggregated GROUP Surplus for the year 1,535,944 1,212,579 220 21,818 2,591 (19,180) 4,243 214,362 12,207 162,569 811 (1,296) (13,208) (69,293) (3,342) 2,660 8,203

GROUP Adjustments

Eliminating journals 418,923

Consolidated GROUP surplus for the year 1,954,867

362 363 Appendix D SEGMENTAL FINANCIAL PERFORMANCE

CONSOL CORE RCIVIC JFPM SOCH MBUS PIKITU POWER PROPTY WATER ZOO MTRADE TOURIS JRA JCIVIC PARKS JDA R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000

Revenue 23,320,728 12,189,916 435 23,246 31,528 2,949 1,092,044 5,734,554 1,465 3,708,631 1,549 7,619 23,849 14,259 9,484 449,149 30,051 Other income 2,289,934 317,777 9,164 179,660 26,361 373,712 (6,822) 261,438 65,916 259,714 52,312 50,231 61,698 477,423 33,119 66,000 62,231

Total Revenue 25,610,662 12,507,693 9,599 202,906 57,889 376,661 1,085,222 5,995,992 67,381 3,968,345 53,861 57,850 85,547 491,682 42,603 515,149 92,282

Expenses (24,059,705) (11,295,114) (9,379) (168,327) (55,373) (395,841) (1,074,405) (5,781,630) (50,863) (3,805,776) (53,050) (59,146) (98,755) (568,233) (47,245) (512,489) (84,079)

Net surplus/ (deficit) for the year 1,550,957 1,212,579 220 34,579 2,516 (19,180) 10,817 214,362 16,518 162,569 811 (1,296) (13,208) (76,551) (4,642) 2,660 8,203

Taxation (14,611) ‐ ‐ (12,761) 267 ‐ (6,364) ‐ (4,311) ‐ ‐ ‐ ‐ 7,258 1,300 ‐ ‐

Aggregated GROUP Surplus for the year 1,535,944 1,212,579 220 21,818 2,591 (19,180) 4,243 214,362 12,207 162,569 811 (1,296) (13,208) (69,293) (3,342) 2,660 8,203

GROUP Adjustments

Eliminating journals 418,923

Consolidated GROUP surplus for the year 1,954,867

362 363 City of Johannesburg Group Annual Financial Statements for the year ended 30 June 2009

Appendix E1 STATEMENT OF FINANCIAL PERFORMANCE - ACTUAL VERSUS BUDGET (GROUP)

2009 2009 Revised 2009 Actual 2009 Original Estimate 2009 Variance Variance R000 Budget R000 R000 R000 % Explanation of significant variances

Revenue 20 724 266 20 894 355 22 802 930 (2 078 664) -9.1%

Property rates 3 330 999 3 890 315 3 946 315 ( 615 316) -15.6% Property Rates are over budget by R19 million (1%) and revenue foregone amounts to R440, 6 million with a nett negative variance of R421, 6 million. With the implementation of the new valuation roll and after taking into account the valuation objections the City has experienced a drop in the revenue baseline. • Penalties Imposed have exceeded budget by R42, 9 million (83%) as a result of an increase in penalties being charged to the accounts of defaulting debtors. Service charges 9 852 446 9 554 475 10 106 234 ( 253 788) -2.5% Rental of facilities and equipment 113 543 115 053 123 199 ( 9 656) -7.8% Interest earned - external investments 645 217 323 090 288 574 356 643 123.6% Interest earned is over budget by R303, 3 million (105%) mainly as a result of interest earned on the sinking fund for the redemption of bonds that was not provided in the budget as well as premium earnings on COJ05 bond. Interest earned - outstanding debtors 160 924 34 600 39 403 121 521 308.4% Revenue derived from this category is over budget by R6, 4 million (16%), as a result of interest being charged to the accounts of defaulting debtors. Fines, licences and permits 390 508 461 396 461 576 ( 71 068) -15.4% This category of revenue mostly relates to the income derived from traffic fines and is under budget as a result of fines that were declared invalid following the implementation of the Administrative Adjudication of the Road Traffic Ordinance system. The City of Johannesburg was utilised as a pilot site for the implementation by the Department of Transport and the E-Natis system was not ready for the implementation. Further matters that influenced the decline in traffic fine income is a change of behaviour by road users and the current economic climate. Income from agency services 155 463 351 896 380 131 ( 224 668) -59.1% This category of revenue mostly relates to the income derived from commission earned by collecting vehicle licence renewal fees on behalf of the Provincial Government and is over budget by R45, 2 million (12%) as a result of an increase in the turnover. Government grants & subsidies 5 033 791 5 531 620 6 684 633 (1 650 842) -24.7% Grants and Subsidies Received Operating :This category of revenue reflects an under performance compared to budget of R63 million (2%) mainly as a result of outstanding subsidies to be received from the Gauteng Provincial Government for the construction of top structures by the Housing Department. Grants and Subsidies Received Capital: This category of revenue reflects an under performance compared to budget of R1, 6 billion (63%) due to the implementation of the accounting policy on recognition of revenue.

Other income 1 041 375 631 910 772 865 268 510 34.7% Interests Expense is over budget due to interests paid on short term facilities and a DBSA loan was issued at a higher interest rate than anticipated together with the COJ 04 bond that was issued at a discount. Non-exchange revenue

Expenditure 19 983 060 18 703 214 19 612 661 ( 370 399) -1.9%

Employee related costs 5 269 672 5 181 944 5 056 295 ( 213 377) -4.2% Remuneration of Councillors 68 657 60 241 67 078 ( 1 579) -2.4% Bad debts 1 478 271 940 675 1 038 376 ( 439 895) -42.4% The over expenditure resulted from a recalculation in terms of the policy of the Council based on the corrected outstanding debtors balance reting to housing department and also as a result of a decrease in the collection levels over the last six months in respect of property rates. Depreciation, amortisation and 733 608 1 258 154 1 112 986 379 378 34.1% Depreciation is over budget due to the capitilisation of completed projects previously categorized as works in impairments progress. Repairs and maintenance 422 947 332 711 462 683 39 736 8.6% Interest Paid : External Borrowings 1 249 801 1 043 060 1 130 830 ( 118 971) -10.5% Interests Expense is over budget due to interests paid on short term facilities and a DBSA loan was issued at a higher interest rate than anticipated together with the COJ 04 bond that was issued at a discount. Bulk purchases 5 428 750 4 808 134 5 443 423 14 673 0.3% Contracted services 1 931 110 2 160 721 2 429 808 498 698 20.5% Grants and subsidies paid - external 361 421 406 045 415 255 53 834 13.0% General expenses 2 975 842 2 643 406 2 585 445 ( 390 397) -15.1% Contribution to/(from)Provisions Impairment losses/(reversal of 31 469 ( 95 064) ( 92 888) ( 124 357) 133.9% impairment losses) Deficit on disposal of property, plant 31 512 ( 36 813) ( 36 630) ( 68 142) 186.0% and equipment

Surplus before taxation 741 206 2 191 141 3 190 269 (2 449 063) -76.8%

Share of deficit of associate accounted 402 0 0 -402 0 for under the equity method

Taxation 14,747 49,131 47,736 (32,989) -69.1%

Surplus for the year 726 057 2 142 010 3 142 533 (2 416 074) -76.9%

*The Actual figures excludes internal transfers

364 365 City of Johannesburg Group Annual Financial Statements for the year ended 30 June 2009

Appendix E1 STATEMENT OF FINANCIAL PERFORMANCE - ACTUAL VERSUS BUDGET (GROUP)

2009 2009 Revised 2009 Actual 2009 Original Estimate 2009 Variance Variance R000 Budget R000 R000 R000 % Explanation of significant variances

Revenue 20 724 266 20 894 355 22 802 930 (2 078 664) -9.1%

Property rates 3 330 999 3 890 315 3 946 315 ( 615 316) -15.6% Property Rates are over budget by R19 million (1%) and revenue foregone amounts to R440, 6 million with a nett negative variance of R421, 6 million. With the implementation of the new valuation roll and after taking into account the valuation objections the City has experienced a drop in the revenue baseline. • Penalties Imposed have exceeded budget by R42, 9 million (83%) as a result of an increase in penalties being charged to the accounts of defaulting debtors. Service charges 9 852 446 9 554 475 10 106 234 ( 253 788) -2.5% Rental of facilities and equipment 113 543 115 053 123 199 ( 9 656) -7.8% Interest earned - external investments 645 217 323 090 288 574 356 643 123.6% Interest earned is over budget by R303, 3 million (105%) mainly as a result of interest earned on the sinking fund for the redemption of bonds that was not provided in the budget as well as premium earnings on COJ05 bond. Interest earned - outstanding debtors 160 924 34 600 39 403 121 521 308.4% Revenue derived from this category is over budget by R6, 4 million (16%), as a result of interest being charged to the accounts of defaulting debtors. Fines, licences and permits 390 508 461 396 461 576 ( 71 068) -15.4% This category of revenue mostly relates to the income derived from traffic fines and is under budget as a result of fines that were declared invalid following the implementation of the Administrative Adjudication of the Road Traffic Ordinance system. The City of Johannesburg was utilised as a pilot site for the implementation by the Department of Transport and the E-Natis system was not ready for the implementation. Further matters that influenced the decline in traffic fine income is a change of behaviour by road users and the current economic climate. Income from agency services 155 463 351 896 380 131 ( 224 668) -59.1% This category of revenue mostly relates to the income derived from commission earned by collecting vehicle licence renewal fees on behalf of the Provincial Government and is over budget by R45, 2 million (12%) as a result of an increase in the turnover. Government grants & subsidies 5 033 791 5 531 620 6 684 633 (1 650 842) -24.7% Grants and Subsidies Received Operating :This category of revenue reflects an under performance compared to budget of R63 million (2%) mainly as a result of outstanding subsidies to be received from the Gauteng Provincial Government for the construction of top structures by the Housing Department. Grants and Subsidies Received Capital: This category of revenue reflects an under performance compared to budget of R1, 6 billion (63%) due to the implementation of the accounting policy on recognition of revenue.

Other income 1 041 375 631 910 772 865 268 510 34.7% Interests Expense is over budget due to interests paid on short term facilities and a DBSA loan was issued at a higher interest rate than anticipated together with the COJ 04 bond that was issued at a discount. Non-exchange revenue

Expenditure 19 983 060 18 703 214 19 612 661 ( 370 399) -1.9%

Employee related costs 5 269 672 5 181 944 5 056 295 ( 213 377) -4.2% Remuneration of Councillors 68 657 60 241 67 078 ( 1 579) -2.4% Bad debts 1 478 271 940 675 1 038 376 ( 439 895) -42.4% The over expenditure resulted from a recalculation in terms of the policy of the Council based on the corrected outstanding debtors balance reting to housing department and also as a result of a decrease in the collection levels over the last six months in respect of property rates. Depreciation, amortisation and 733 608 1 258 154 1 112 986 379 378 34.1% Depreciation is over budget due to the capitilisation of completed projects previously categorized as works in impairments progress. Repairs and maintenance 422 947 332 711 462 683 39 736 8.6% Interest Paid : External Borrowings 1 249 801 1 043 060 1 130 830 ( 118 971) -10.5% Interests Expense is over budget due to interests paid on short term facilities and a DBSA loan was issued at a higher interest rate than anticipated together with the COJ 04 bond that was issued at a discount. Bulk purchases 5 428 750 4 808 134 5 443 423 14 673 0.3% Contracted services 1 931 110 2 160 721 2 429 808 498 698 20.5% Grants and subsidies paid - external 361 421 406 045 415 255 53 834 13.0% General expenses 2 975 842 2 643 406 2 585 445 ( 390 397) -15.1% Contribution to/(from)Provisions Impairment losses/(reversal of 31 469 ( 95 064) ( 92 888) ( 124 357) 133.9% impairment losses) Deficit on disposal of property, plant 31 512 ( 36 813) ( 36 630) ( 68 142) 186.0% and equipment

Surplus before taxation 741 206 2 191 141 3 190 269 (2 449 063) -76.8%

Share of deficit of associate accounted 402 0 0 -402 0 for under the equity method

Taxation 14,747 49,131 47,736 (32,989) -69.1%

Surplus for the year 726 057 2 142 010 3 142 533 (2 416 074) -76.9%

*The Actual figures excludes internal transfers

364 365 City of Johannesburg Group Annual Financial Statements for the year ended 30 June 2009

Appendix E2 FIXED ASSET ADDITIONS - ACTUAL VERSUS BUDGET

Explanation of significant variances from budget Additions 2009 Original 2009 Revised 2009 Variance 2009 R000 Budget R000 Budget R000 R000 Variance %

CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY 4,314,021 3,079,089 4,490,912 176,891 4%

The under spending was experienced on the rehabilitation of Upper Juskei River Environmental Management 3,756 4,812 5,512 1,756 32% Catchments project which was delayed by the EIA process. The capital budget mainly consisted of operational capital and was spent according to Infrastructure and Services 260 345 345 85 25% requirement.

The under spending was caused mainly by the following projects:• The Intelligent Transport System project was under spent as a result of delays experienced with the awarding of the contract as well as queries with regards to certain invoices in respect of work done. • The Nasrec SPTN and Precinct 2010 project was under spent as a result of delays experienced with the commencement of the Golden Highway Link to the Soccer City interchange on the Soweto Highway. Transportation 1,256,021 980,628 1,645,979 389,958 24% Due to the 99 year lease for Soccer city, soccer city leasehold improvements, Executive Mayor and City Manager 1,769,487 516,279 1,398,334 (371,153) -27% computer equipment.

The capital budget mainly consisted of operational capital and was spent according to Finance 35,589 64,249 4,249 (31,340) -738% requirement. A saving of R917 000 was incurred on furniture that was not required. The capital budget mainly consisted of operational capital and was spent according to requirement. A saving of R756 000 was incurred on computer equipment that was not Revenue 4,980 7,274 5,712 732 13% delivered.

The capital budget was intended for bulk infrastructure at phase two of Soweto Empowerment Zone (SEZ) Offices. As a result of the delayed Township establishment and proclamation processes the funds could not be spent and resulted in a saving. Economic Development 3,900 17,212 6,604 2,704 41% The operational capital has been fully spent. The New Canada Station project and Diepsloot South Project was placed on hold as the budget provision was insufficient to cover the total cost of the projects. The projects will be considered for implementation on future budgets when total financing can be secured.• The Bara Central Precinct Project was under spent as a result of a delay experienced in the appointment of the consultants and contractors. Development Planning & Urban Management 342,246 446,318 395,724 53,478 14% The budget could not be fully utilised due to failure by the supplier (Masana) to deliver Health 7,125 6,946 7,959 834 10% stock in time. Community Development 211,943 194,476 220,300 8,357 4% The IBC Accommodation Facility project was under spent as a result of delays caused by legal matters that had to be resolved before commencement of the project. This delayed the project, which resulted in under spending. • The Land Purchases project was under spent as a result of delays experienced in finalising the purchasing negotiations in respect of land. Housing 289,616 350,235 325,235 35,619 11% Savings were experienced on the provision for furniture, computers and office machines for new employees that could not be utilised because of late advertisements Corporate Support and Shared Services 22,429 7,221 25,865 3,436 13% of vacancies. The under expenditure was caused by under spending on IT equipment. The scheduled completion date was 30 June 2009 but no expenditure was incurred on this project as the supplier (Masana) failed to deliver the equipment Radios, Furniture, Plant and Equipment are also unspent due to reprioritising of expenditure to that considered to be essential. Full details of the projects can be viewed in annexure A26. Johannesburg Metropolitan Police Department 2,360 3,399 3,399 1,039 31% The under spending was caused by unspent funds relating to fire equipment ordered from overseas that were not delivered before the end of the financial year. Emergency Management Services 3,058 7,572 3,572 514 14% JDA - Deviations were incurred on the Greater Newtown project as a result of a delay in the signing of the development agreement as all occupants of the priority block had to be verified which delayed the process. JRA - The under expenditure was caused by under spending on the 2010 project as well as the Footways Project due to delays in the appointment of contractors. Agencies 360,393 471,000 441,000 80,607 18% The under spending was caused by late delivery of goods and the commitments were Speaker: Legislative Arm of Council 859 1,123 1,123 264 24% subsequently cancelled.

MUNICIPAL ENTITIES 2,155,942 2,193,363 2,063,011 (92,931) -5%

Over expenditure have mainly been incurred on the Computer Software projects (PIMS) system, which is a multi year project, and have progressed ahead of schedule. City of Johannesburg Property Company 4,639 5,000 4,000 (639) -16% Over expenditure was mainly incurred on Bulk Supply and Distribution, which required urgent upgrading to sustain a reliable electricity supply service. City Power Johannesburg 1,096,743 1,043,545 1,001,545 (95,198) -10% Johannesburg City Parks 11,885 12,126 12,590 705 6% Johannesburg Development Agency 4,966 6,000 5,000 34 1% Johannesburg Metropolitan Bus Services 15,407 12,771 12,771 (2,636) INF Johannesburg Roads Agency 11,156 12,564 12,200 1,044 9% Johannesburg Social Housing Company 145,533 159,874 160,652 15,119 9% The budget has been overspent on the exhibitions project, which included the construction of a stage for the hosting of the Miss World Beauty Pageant. Johannesburg Tourism Company 5,747 2,000 2,000 (3,747) INF Johannesburg Water 727,213 871,793 729,063 1,850 0% The under spending relates mostly to the Bins Replacement project that was placed on hold to generate deliberate savings as part of the budget revision process. Pikitup Johannesburg 95,791 29,690 85,190 (10,601) -12% Roodepoort City Theatre 280 1,000 1,000 720 72% No capital expenditure was incurred, as the provision was not adequate to provide for The Johannesburg Civic Theatre 608 6,000 6,000 5,392 90% the total cost of the project. Over expenditure had been incurred in respect of the following projects:• Washbasin and Portable Water Project: A provision of only R1 million was made for this project in the current financial year. The original starting date of this project was in 2006. The increased expenditure relates to a settlement that was reached with the contractor who left the construction site as a result of non-payment and disputes. The project manager was the cause of various anomalies on the project that resulted in the disputes with the contractor. The project manager has since left employment with the JFPM. A settlement was negotiated with the contractor who completed the project inclusive of the variations in scope that resulted in increased construction costs. • Fleet Trucks: The over expenditure was as a result of a settlement of two trucks at the end of the lease term. These trucks are used on the BEE programmes that JFPM has embarked on in Limpopo with the District Municipality of Vhembe. Produce is delivered from the emerging farmers to the BEE agents on the JFPM trading floor. The trucks are also utilised to deliver food parcels to various NGO’s and beneficiaries The Johannesburg Fresh Produce Market 33,730 20,000 20,000 (13,730) -69% identified by the Council on the food security and poverty alleviation programmes. • I f i T h l Th j b R799 000 l f The Johannesburg Zoo 972 5,500 5,500 4,528 82% The Metropolitan Trading Company 1,272 5,500 5,500 4,228 77%

6,469,963 5,272,452 6,553,923 83,960 1%

366 367 366 367 CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY APPENDIX F DISCLOSURES OF GRANTS AND SUBSIDIES IN TERMS OF SECTION 123 OF MFMA, 56 OF 2003

GRANTS AND SUBSIDIES RECEIVED

Quarterly Receipts Quarterly Expenditure Grants and Subsidies delayed / withheld

Complia nce with Division of March June Sept Dec March March June Sept Dec March March June Sept Dec March Reason for delay Revenue Name of organ of state or 2008 2008 2008 2008 2009 2008 2008 2008 2008 2009 2008 2008 2008 2008 2009 or withholding of Act Yes / Name of Grant municipal entity R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 Funds No CMIP/MIG FUNDING-PLANNING GAUTENG PROVINCE 8,984 - - 8,994 ------17,978 - NO EXP Yes ALEXANDRA RENEWAL PROJECT GAUTENG PROVINCE 270 ------270 - NO EXP Yes COSMO CITY-ELECTRICAL RETIC PUBLIC CONTRIBUTION 10,000 ------10,000 - NO EXP Yes PIEDMONT REGIONAL PROJECT PUBLIC CONTRIBUTION 100 ------100 - NO EXP Yes STRETFORD STATION PRECINCT NATIONAL TREASURY - - - 6,700 - - - - 6,700 ------Yes VILAKAZI STREET PRECINCT NATIONAL TREASURY 6,600 ------6,600 ------Yes DIEPSLOOT SOUTH NATIONAL TREASURY 8,600 ------8,600 - NO EXP Yes KLIPTOWN CBD REGENERATION NATIONAL TREASURY 35,070 ------34,003 - - - - 1,067 - NO EXP Yes ORLANDO EKHAYA PROJECT NATIONAL TREASURY 7,500 ------7,465 - - - - 35 - NO EXP Yes GRANT KYALAMI CORRIDOR GDACE 213 ------213 TO BE SPENT Yes URBAN ENVIRON MANAGEMENT DANISH GOVERNMENT 3,426 - - 8,850 - - - - -5,021 - - - - - 7,256 TO BE SPENT Yes CLINTON FOUNDATION W J CLINTON 100 ------100 TO BE SPENT Yes WASTE MINIMISATION DBSA 439 - - 200 ------114 TO BE SPENT Yes JUSKEI RIVER CLEAN- UP GDACE - 1,050 - - - - -1,050 ------SPENT Yes Public Transport Infrastructure & SysteCentral Government - 335,300 163,000 - 788,674 197,031 - 261,992 - 811,032 - - - - - Yes Ambulance Subsidy Gauteng Province 17,934 17,934 17,934 17,934 71,737 35,993 41,609 39,401 44,645 235,309 - - - - - Yes CARNEGIE CORP GRANT PUBLIC CONTRIBUTIONS - - 540 - - - - - 2,144 ------Yes MULTI PURPOSE TSHEPISONG PROVINCIAL GRANT ------0 ------Yes ARTHER ASHE TENNIS FAC PROVINCIAL GRANT ------0 ------Yes DLG CIVIL BURIAL PROVINCIAL GRANT ------1,028 ------Yes 08/09 LIBRARY PROV GRANT PROVINCIAL GRANT - - 2,226 - - - - - 2,226 ------Yes 08/09 LIBRARY PROV GRANT PROVINCIAL GRANT - - 4,914 - - - - - 4,314 ------Yes SASTA LIBRARY PROVINCIAL GRANT - - 4,328 - - - - - 4,392 ------Yes ICT EQUIPMENT PROVINCIAL GRANT ------0 ------Yes 09/10 LIBRARY PROVINCIAL PROVINCIAL GRANT - - - 4,000 ------Yes SOCIAL FACILITIES PROVINCIAL GRANT ------Yes COSMO CITY MIG FUNDING - 3,969 3,472 4,357 - - - - 11,798 ------Yes RAND STADIUM MIG FUNDING - 5,160 4,478 2,159 - - - - 11,797 ------Yes DOBSONVILLE STADIUM MIG FUNDING - 2,791 10,967 39 - - - - 13,797 ------Yes ORLANDO STADIUM MIG FUNDING - - 41,082 1,062 - - - - 42,144 ------Yes WESTBURY GYM PROVINCIAL GRANT - - - 500 - - - - 500 ------Yes ELLISPARK SWIMMING POOL PROVINCIAL GRANT - - - 1,000 - - - - 1,000 ------Yes DAC GRANT PROVINCIAL GRANT - - - 2,024 - - - - 2,024 ------Yes AFRICA DAY GRANT PROVINCIAL GRANT - - - 1,448 - - - - 1,448 ------Yes NATIONAL LOTTERY LOTTO - - - 800 ------Yes GREENING SOCCERFIELDS PROVINCIAL GRANT ------0 ------Yes ROYAL NETHERLANDS PUBLIC CONTRIBUTIONS ------1,187 ------Yes KELOGG FOUNDATION PUBLIC CONTRIBUTIONS ------1,172 ------Yes GEOLOGICAL MUSEUM PROVINCIAL GRANT ------2,079 ------Yes UNCLE TOMS PROVINCIAL GRANT ------8 ------Yes BILL JARDINE PROVINCIAL GRANT ------1,643 ------Yes ARTHER ASHE TENNIS FAC PROVINCIAL GRANT ------5,953 ------Yes KIPPIEZ JAZZ PROVINCIAL GRANT ------526 ------Yes SANDTON GALLERY PROVINCIAL GRANT ------1,926 ------Yes Provincial Grant-Diepsloot west GAUTENG DEPARTMENT O - - - - - 929 627 1,213 3,263 - 929 627 1,213 3,263 - No Reason ProvidedYes Provincial Grant-Drieziek Ext 5 GAUTENG DEPARTMENT O ------5,872 8,648 7,142 - - 5,872 8,648 7,142 - No Reason ProvidedYes Provincial Grant-Drieziek Ext 3 GAUTENG DEPARTMENT O - - - - - 6,083 13,241 8,944 11,027 - 6,083 13,241 8,944 11,027 - No Reason ProvidedYes Provincial Grant-Zandspruit GAUTENG DEPARTMENT O - - - - - 1,144 1,014 871 3,447 - 1,144 1,014 871 3,447 - No Reason ProvidedYes Provincial Grant-Finetown East GAUTENG DEPARTMENT O ------1,634 4,597 2,317 - - 1,634 4,597 2,317 - No Reason ProvidedYes Provincial Grant-Finetown Proper GAUTENG DEPARTMENT O - - - - - 3,487 1,357 2,276 532 - 3,487 1,357 2,276 532 - No Reason ProvidedYes Provincial Grant-Golden Triangle GAUTENG DEPARTMENT O - - - - - 11,383 11,819 10,695 3,486 - 11,383 11,819 10,695 3,486 - No Reason ProvidedYes Provincial Grant-Ivory Park GAUTENG DEPARTMENT O ------6,315 1,847 4,271 - - 6,315 1,847 4,271 - No Reason ProvidedYes

368 369 CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY APPENDIX F DISCLOSURES OF GRANTS AND SUBSIDIES IN TERMS OF SECTION 123 OF MFMA, 56 OF 2003

GRANTS AND SUBSIDIES RECEIVED

Quarterly Receipts Quarterly Expenditure Grants and Subsidies delayed / withheld

Complia nce with Division of March June Sept Dec March March June Sept Dec March March June Sept Dec March Reason for delay Revenue Name of organ of state or 2008 2008 2008 2008 2009 2008 2008 2008 2008 2009 2008 2008 2008 2008 2009 or withholding of Act Yes / Name of Grant municipal entity R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 Funds No CMIP/MIG FUNDING-PLANNING GAUTENG PROVINCE 8,984 - - 8,994 ------17,978 - NO EXP Yes ALEXANDRA RENEWAL PROJECT GAUTENG PROVINCE 270 ------270 - NO EXP Yes COSMO CITY-ELECTRICAL RETIC PUBLIC CONTRIBUTION 10,000 ------10,000 - NO EXP Yes PIEDMONT REGIONAL PROJECT PUBLIC CONTRIBUTION 100 ------100 - NO EXP Yes STRETFORD STATION PRECINCT NATIONAL TREASURY - - - 6,700 - - - - 6,700 ------Yes VILAKAZI STREET PRECINCT NATIONAL TREASURY 6,600 ------6,600 ------Yes DIEPSLOOT SOUTH NATIONAL TREASURY 8,600 ------8,600 - NO EXP Yes KLIPTOWN CBD REGENERATION NATIONAL TREASURY 35,070 ------34,003 - - - - 1,067 - NO EXP Yes ORLANDO EKHAYA PROJECT NATIONAL TREASURY 7,500 ------7,465 - - - - 35 - NO EXP Yes GRANT KYALAMI CORRIDOR GDACE 213 ------213 TO BE SPENT Yes URBAN ENVIRON MANAGEMENT DANISH GOVERNMENT 3,426 - - 8,850 - - - - -5,021 - - - - - 7,256 TO BE SPENT Yes CLINTON FOUNDATION W J CLINTON 100 ------100 TO BE SPENT Yes WASTE MINIMISATION DBSA 439 - - 200 ------114 TO BE SPENT Yes JUSKEI RIVER CLEAN- UP GDACE - 1,050 - - - - -1,050 ------SPENT Yes Public Transport Infrastructure & SysteCentral Government - 335,300 163,000 - 788,674 197,031 - 261,992 - 811,032 - - - - - Yes Ambulance Subsidy Gauteng Province 17,934 17,934 17,934 17,934 71,737 35,993 41,609 39,401 44,645 235,309 - - - - - Yes CARNEGIE CORP GRANT PUBLIC CONTRIBUTIONS - - 540 - - - - - 2,144 ------Yes MULTI PURPOSE TSHEPISONG PROVINCIAL GRANT ------0 ------Yes ARTHER ASHE TENNIS FAC PROVINCIAL GRANT ------0 ------Yes DLG CIVIL BURIAL PROVINCIAL GRANT ------1,028 ------Yes 08/09 LIBRARY PROV GRANT PROVINCIAL GRANT - - 2,226 - - - - - 2,226 ------Yes 08/09 LIBRARY PROV GRANT PROVINCIAL GRANT - - 4,914 - - - - - 4,314 ------Yes SASTA LIBRARY PROVINCIAL GRANT - - 4,328 - - - - - 4,392 ------Yes ICT EQUIPMENT PROVINCIAL GRANT ------0 ------Yes 09/10 LIBRARY PROVINCIAL PROVINCIAL GRANT - - - 4,000 ------Yes SOCIAL FACILITIES PROVINCIAL GRANT ------Yes COSMO CITY MIG FUNDING - 3,969 3,472 4,357 - - - - 11,798 ------Yes RAND STADIUM MIG FUNDING - 5,160 4,478 2,159 - - - - 11,797 ------Yes DOBSONVILLE STADIUM MIG FUNDING - 2,791 10,967 39 - - - - 13,797 ------Yes ORLANDO STADIUM MIG FUNDING - - 41,082 1,062 - - - - 42,144 ------Yes WESTBURY GYM PROVINCIAL GRANT - - - 500 - - - - 500 ------Yes ELLISPARK SWIMMING POOL PROVINCIAL GRANT - - - 1,000 - - - - 1,000 ------Yes DAC GRANT PROVINCIAL GRANT - - - 2,024 - - - - 2,024 ------Yes AFRICA DAY GRANT PROVINCIAL GRANT - - - 1,448 - - - - 1,448 ------Yes NATIONAL LOTTERY LOTTO - - - 800 ------Yes GREENING SOCCERFIELDS PROVINCIAL GRANT ------0 ------Yes ROYAL NETHERLANDS PUBLIC CONTRIBUTIONS ------1,187 ------Yes KELOGG FOUNDATION PUBLIC CONTRIBUTIONS ------1,172 ------Yes GEOLOGICAL MUSEUM PROVINCIAL GRANT ------2,079 ------Yes UNCLE TOMS PROVINCIAL GRANT ------8 ------Yes BILL JARDINE PROVINCIAL GRANT ------1,643 ------Yes ARTHER ASHE TENNIS FAC PROVINCIAL GRANT ------5,953 ------Yes KIPPIEZ JAZZ PROVINCIAL GRANT ------526 ------Yes SANDTON GALLERY PROVINCIAL GRANT ------1,926 ------Yes Provincial Grant-Diepsloot west GAUTENG DEPARTMENT O - - - - - 929 627 1,213 3,263 - 929 627 1,213 3,263 - No Reason ProvidedYes Provincial Grant-Drieziek Ext 5 GAUTENG DEPARTMENT O ------5,872 8,648 7,142 - - 5,872 8,648 7,142 - No Reason ProvidedYes Provincial Grant-Drieziek Ext 3 GAUTENG DEPARTMENT O - - - - - 6,083 13,241 8,944 11,027 - 6,083 13,241 8,944 11,027 - No Reason ProvidedYes Provincial Grant-Zandspruit GAUTENG DEPARTMENT O - - - - - 1,144 1,014 871 3,447 - 1,144 1,014 871 3,447 - No Reason ProvidedYes Provincial Grant-Finetown East GAUTENG DEPARTMENT O ------1,634 4,597 2,317 - - 1,634 4,597 2,317 - No Reason ProvidedYes Provincial Grant-Finetown Proper GAUTENG DEPARTMENT O - - - - - 3,487 1,357 2,276 532 - 3,487 1,357 2,276 532 - No Reason ProvidedYes Provincial Grant-Golden Triangle GAUTENG DEPARTMENT O - - - - - 11,383 11,819 10,695 3,486 - 11,383 11,819 10,695 3,486 - No Reason ProvidedYes Provincial Grant-Ivory Park GAUTENG DEPARTMENT O ------6,315 1,847 4,271 - - 6,315 1,847 4,271 - No Reason ProvidedYes

368 369 CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY APPENDIX F DISCLOSURES OF GRANTS AND SUBSIDIES IN TERMS OF SECTION 123 OF MFMA, 56 OF 2003

GRANTS AND SUBSIDIES RECEIVED

Quarterly Receipts Quarterly Expenditure Grants and Subsidies delayed / withheld

Complia nce with Division of March June Sept Dec March March June Sept Dec March March June Sept Dec March Reason for delay Revenue Name of organ of state or 2008 2008 2008 2008 2009 2008 2008 2008 2008 2009 2008 2008 2008 2008 2009 or withholding of Act Yes / Name of Grant municipal entity R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 Funds No Provincial Grant-Kliptown GAUTENG DEPARTMENT O - - - - - 46 3,103 3,103 3,905 - 46 3,103 3,103 3,905 - No Reason ProvidedYes Provincial Grant-Mathollesville GAUTENG DEPARTMENT O - - - - - 1,227 1,883 1,581 1,069 - 1,227 1,883 1,581 1,069 - No Reason ProvidedYes Provincial Grant-Poortjie GAUTENG DEPARTMENT O - - - - - 5,052 3,526 2,504 3,734 - 5,052 3,526 2,504 3,734 - No Reason ProvidedYes Provincial Grant-Protea South GAUTENG DEPARTMENT O ------243 522 - - - 243 522 - No Reason ProvidedYes Provincial Grant-Sol Plaatjie GAUTENG DEPARTMENT O - - - - - 9,077 1,959 9,719 21,633 - 9,077 1,959 9,719 21,633 - No Reason ProvidedYes Provincial Grant-Vlakfontein Ext GAUTENG DEPARTMENT O ------2,552 4,870 8,854 - - 2,552 4,870 8,854 - No Reason ProvidedYes Provincial Grant-Lehae GAUTENG DEPARTMENT O ------370 367 817 - - 370 367 817 - No Reason ProvidedYes Provincial Grant-Vlakfontein Prop GAUTENG DEPARTMENT O ------7,825 11,369 - - - 7,825 11,369 - No Reason ProvidedYes Provincial Grant- Relocation GAUTENG DEPARTMENT O - - - - - 143 545 22 859 - 143 545 22 859 - No Reason ProvidedYes Provincial Grant-Pennyville GAUTENG DEPARTMENT O ------6,491 - 21,897 - - 6,491 - 21,897 - No Reason ProvidedYes Provincial Grant-Rabie Ridge GAUTENG DEPARTMENT O ------2,722 - 2,115 - - 2,722 - 2,115 - No Reason ProvidedYes Provincial Grant-Kliptown GAUTENG DEPARTMENT O ------325 - 1,217 - - 325 - 1,217 - No Reason ProvidedYes Provincial Grant-Willers Farm GAUTENG DEPARTMENT O ------2,069 10,162 - - - 2,069 10,162 - No Reason ProvidedYes Provincial Grant-Land GAUTENG DEPARTMENT O - - - 15,402 ------No Reason ProvidedYes Provincial Grant-Diepkloof Hostel GAUTENG DEPARTMENT O ------940 - 7,755 - - - - 7,755 - No Reason ProvidedYes Provincial Grant-Pennyville GAUTENG DEPARTMENT O - 7,236 - - - 6,046 227 1,036 393 - 6,046 940 1,036 393 - No Reason ProvidedYes Provincial Grant-Sol Plaatjie GAUTENG DEPARTMENT O ------173 - 15,229 - - 227 - 8,166 - No Reason ProvidedYes Lawley Ext 3 Roads & Stormwater Gauteng Department of Local - - - 673 - - - 6,293 - - - - 6,293 38,143 - No Reason ProvidedYes Doornkop Greenvillage Gauteng Department of Local - - - 4,405 ------No Reason ProvidedYes Sol Plaatjie Gauteng Department of Local - - - 2,313 - - - 198 520 ------No Reason ProvidedYes Pennyville Gauteng Department of Local - - - 7,967 - - 5,164 4,785 - - - 7,051 - - - No Reason ProvidedYes Kanana Park Gauteng Department of Local - - - 5,748 - 1,062 2,976 115 - - - 374 - - - No Reason ProvidedYes Doornkop Greenfield Gauteng Department of Local - - - 27,794 - - 1,063 17,507 6,487 - - 5,143 - - - No Reason ProvidedYes Stretford Ext 2 link Gauteng Department of Local - - - 804 - 494 192 88 - - - 51 - - - No Reason ProvidedYes Vlakfontein Proper Gauteng Department of Local - - - 17,874 - 9,293 552 266 - - - 4,375 - - - No Reason ProvidedYes Meriting Kaalfontein Gauteng Department of Local - - - 1,524 - - 1,342 ------No Reason ProvidedYes Orange Farm Ext 9 Gauteng Department of Local - - - 2,824 - - 634 195 2,919 - - 924 - - - No Reason ProvidedYes Lehae Ext 1 Bulk Attenuation Gauteng Department of Local - - - 7,364 - - 5,797 1,946 - - - 380 - - - No Reason ProvidedYes Finetown East Gauteng Department of Local - - - 2,976 - - 2,976 ------No Reason ProvidedYes Braamfischerville Gauteng Department of Local - - - 140 - 140 ------No Reason ProvidedYes DLG HIV and AIDS Grant Gauteng Department of Local - 2,083 - - 2,700 - - 5,130 - 3,695 - - - - - Yes Cash Subsidy Provincial Department of Hea - 33,900 - 16,950 72,262 910 1,644 1,037 2,858 7,337 - - - - - Yes Municipal Infrastructure Grant National Government 44,378 131,845 - 150,824 327,047 36,064 111,365 77,575 144,399 369,404 - - - 69,964 69,964 Project delays Yes 2010 FIFA World Cup Stadiums National Department of Development Grant - Soccer City Sports and Recreation 174,600 58,200 246,726 127,000 606,526 174,600 58,200 246,726 127,000 606,526 - - - - - N/A Yes 2010 FIFA World Cup Stadiums National Department of Development Grant - Ellis Park Sports and Recreation 20,800 - 41,532 - 62,332 48,868 35,068 8,282 21,144 113,361 - - - - - N/A Yes 2010 World Cup Host City Operating National Department of Grant Sports and Recreation - - - 31,000 31,000 - - - 17,582 17,582 - - - - - N/A Yes Municipal Infrastructure Grant Central Government ------2,049 3,475 4,319 ------Funds redistributed i Municipal Infrastructure Grant MIG FUNDING 117,703 53,795 - 9,498 - 20,928 32,867 5,370 4,128 93,187 - - - - - No Reason ProvidedYes Social Housing Fund National Department of Housi 12,259 - - - 80,149 - 12,259 - - 80,149 - - - - - N/A Yes

370 371 CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY APPENDIX F DISCLOSURES OF GRANTS AND SUBSIDIES IN TERMS OF SECTION 123 OF MFMA, 56 OF 2003

GRANTS AND SUBSIDIES RECEIVED

Quarterly Receipts Quarterly Expenditure Grants and Subsidies delayed / withheld

Complia nce with Division of March June Sept Dec March March June Sept Dec March March June Sept Dec March Reason for delay Revenue Name of organ of state or 2008 2008 2008 2008 2009 2008 2008 2008 2008 2009 2008 2008 2008 2008 2009 or withholding of Act Yes / Name of Grant municipal entity R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 R000 Funds No Provincial Grant-Kliptown GAUTENG DEPARTMENT O - - - - - 46 3,103 3,103 3,905 - 46 3,103 3,103 3,905 - No Reason ProvidedYes Provincial Grant-Mathollesville GAUTENG DEPARTMENT O - - - - - 1,227 1,883 1,581 1,069 - 1,227 1,883 1,581 1,069 - No Reason ProvidedYes Provincial Grant-Poortjie GAUTENG DEPARTMENT O - - - - - 5,052 3,526 2,504 3,734 - 5,052 3,526 2,504 3,734 - No Reason ProvidedYes Provincial Grant-Protea South GAUTENG DEPARTMENT O ------243 522 - - - 243 522 - No Reason ProvidedYes Provincial Grant-Sol Plaatjie GAUTENG DEPARTMENT O - - - - - 9,077 1,959 9,719 21,633 - 9,077 1,959 9,719 21,633 - No Reason ProvidedYes Provincial Grant-Vlakfontein Ext GAUTENG DEPARTMENT O ------2,552 4,870 8,854 - - 2,552 4,870 8,854 - No Reason ProvidedYes Provincial Grant-Lehae GAUTENG DEPARTMENT O ------370 367 817 - - 370 367 817 - No Reason ProvidedYes Provincial Grant-Vlakfontein Prop GAUTENG DEPARTMENT O ------7,825 11,369 - - - 7,825 11,369 - No Reason ProvidedYes Provincial Grant- Relocation GAUTENG DEPARTMENT O - - - - - 143 545 22 859 - 143 545 22 859 - No Reason ProvidedYes Provincial Grant-Pennyville GAUTENG DEPARTMENT O ------6,491 - 21,897 - - 6,491 - 21,897 - No Reason ProvidedYes Provincial Grant-Rabie Ridge GAUTENG DEPARTMENT O ------2,722 - 2,115 - - 2,722 - 2,115 - No Reason ProvidedYes Provincial Grant-Kliptown GAUTENG DEPARTMENT O ------325 - 1,217 - - 325 - 1,217 - No Reason ProvidedYes Provincial Grant-Willers Farm GAUTENG DEPARTMENT O ------2,069 10,162 - - - 2,069 10,162 - No Reason ProvidedYes Provincial Grant-Land GAUTENG DEPARTMENT O - - - 15,402 ------No Reason ProvidedYes Provincial Grant-Diepkloof Hostel GAUTENG DEPARTMENT O ------940 - 7,755 - - - - 7,755 - No Reason ProvidedYes Provincial Grant-Pennyville GAUTENG DEPARTMENT O - 7,236 - - - 6,046 227 1,036 393 - 6,046 940 1,036 393 - No Reason ProvidedYes Provincial Grant-Sol Plaatjie GAUTENG DEPARTMENT O ------173 - 15,229 - - 227 - 8,166 - No Reason ProvidedYes Lawley Ext 3 Roads & Stormwater Gauteng Department of Local - - - 673 - - - 6,293 - - - - 6,293 38,143 - No Reason ProvidedYes Doornkop Greenvillage Gauteng Department of Local - - - 4,405 ------No Reason ProvidedYes Sol Plaatjie Gauteng Department of Local - - - 2,313 - - - 198 520 ------No Reason ProvidedYes Pennyville Gauteng Department of Local - - - 7,967 - - 5,164 4,785 - - - 7,051 - - - No Reason ProvidedYes Kanana Park Gauteng Department of Local - - - 5,748 - 1,062 2,976 115 - - - 374 - - - No Reason ProvidedYes Doornkop Greenfield Gauteng Department of Local - - - 27,794 - - 1,063 17,507 6,487 - - 5,143 - - - No Reason ProvidedYes Stretford Ext 2 link Gauteng Department of Local - - - 804 - 494 192 88 - - - 51 - - - No Reason ProvidedYes Vlakfontein Proper Gauteng Department of Local - - - 17,874 - 9,293 552 266 - - - 4,375 - - - No Reason ProvidedYes Meriting Kaalfontein Gauteng Department of Local - - - 1,524 - - 1,342 ------No Reason ProvidedYes Orange Farm Ext 9 Gauteng Department of Local - - - 2,824 - - 634 195 2,919 - - 924 - - - No Reason ProvidedYes Lehae Ext 1 Bulk Attenuation Gauteng Department of Local - - - 7,364 - - 5,797 1,946 - - - 380 - - - No Reason ProvidedYes Finetown East Gauteng Department of Local - - - 2,976 - - 2,976 ------No Reason ProvidedYes Braamfischerville Gauteng Department of Local - - - 140 - 140 ------No Reason ProvidedYes DLG HIV and AIDS Grant Gauteng Department of Local - 2,083 - - 2,700 - - 5,130 - 3,695 - - - - - Yes Cash Subsidy Provincial Department of Hea - 33,900 - 16,950 72,262 910 1,644 1,037 2,858 7,337 - - - - - Yes Municipal Infrastructure Grant National Government 44,378 131,845 - 150,824 327,047 36,064 111,365 77,575 144,399 369,404 - - - 69,964 69,964 Project delays Yes 2010 FIFA World Cup Stadiums National Department of Development Grant - Soccer City Sports and Recreation 174,600 58,200 246,726 127,000 606,526 174,600 58,200 246,726 127,000 606,526 - - - - - N/A Yes 2010 FIFA World Cup Stadiums National Department of Development Grant - Ellis Park Sports and Recreation 20,800 - 41,532 - 62,332 48,868 35,068 8,282 21,144 113,361 - - - - - N/A Yes 2010 World Cup Host City Operating National Department of Grant Sports and Recreation - - - 31,000 31,000 - - - 17,582 17,582 - - - - - N/A Yes Municipal Infrastructure Grant Central Government ------2,049 3,475 4,319 ------Funds redistributed i Municipal Infrastructure Grant MIG FUNDING 117,703 53,795 - 9,498 - 20,928 32,867 5,370 4,128 93,187 - - - - - No Reason ProvidedYes Social Housing Fund National Department of Housi 12,259 - - - 80,149 - 12,259 - - 80,149 - - - - - N/A Yes

370 371 CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY APPENDIX G

BANK BALANCES AND CASH AS AT 30 JUNE 2009

Bank Statement Balance Cash Book Balance Description Account 30/06/2007 30/06/2008 30/06/2009 30/06/2007 30/06/2008 30/06/2009 R000 R000 R000 R000 R000 R000

Bank Accounts: ABSA : Primary Bank Account 4054394859 1,560 443,309 94,780 1,560 443,309 94,780 ABSA : Ordinary Bank Account 4054398227 - - - - (33,807) (31,046) ABSA : Stores Bank Accounts 4054398308 ------ABSA : Licensing Bank Account 4054398405 - - - 2,444 2,338 38,093 ABSA : Traffic Bank Account 4054398332 - - - 359 238 565 ABSA : Traffic Aarto Bank Account 40773152034 - - 48,734 - - 48,734 ABSA : Civil Contracts Bank Account 4054398455 ------ABSA : RSC Billing Bank Account 4054398439 ------ABSA : Internal Collection Bank Accoun 4054398421 ------ABSA : R/D Ordinary Bank Account 4054398578 ------ABSA : Elec Payments Costs Bank Acco 4054398497 ------ABSA : 3rd Party Banking Bank Accoun 4054398489 - - - 7,043 125 17 ABSA : Elec Payments Bank Account 4054398463 16,727 12,544 18,683 16,727 12,544 18,683 ABSA : Elec Payment R/D Bank Accoun 405442511 - - - 43 - - ABSA : Collections Bank Account 4054423561 - - - 15,329 15,939 31,645 ABSA : R/D Bank Account 4054398502 - - - 264 - - ABSA : RSC Contractors 1 Bank Accoun 4054486339 ------ABSA : RSC Contractors 2 Bank Accoun 4054486355 ------ABSA : RSC Contractors 4 Bank Accoun 4055463920 ------ABSA : RSC Contractors 3 Bank Accoun 4055463881 ------ABSA : RSC R/D Bank Account 4055464023 ------ABSA : RSC Bank Charges Bank Accou 4055464049 ------ABSA : Traffic R/D Bank Account 4057154521 ------ABSA : Licensing R/D Bank Account 4057154652 ------ABSA : Bank Charges Ordinary Bank Ac 4057154791 ------ABSA : Licensing Bank Charges Bank A 4058779813 ------ABSA : Traffic Bank Charges Bank Acco 4058779994 ------ABSA : Addis Ababa Bank Account 4060525145 92 102 112 92 102 112 ABSA : Arts Alive Bank Account 4057855929 ------ABSA : Danida Bank Account 4059870765 242 97 - 242 218 - FNB : Treasury Bank Account 62012152386 ------FNB : Ordinary Bank Account 50611838621 ------FNB : Licensing Bank Account 62016397178 ------FNB : Traffic Bank Account 62016397326 ------ABSA 40 5853 6762 6 6 6 6 6 6 ABSA 40 5853 6005 4 4 4 4 4 4 ABSA 91 1288 7111 16 16 17 17 17 17 NEDBANK 15 1106 3270 90 90 99 99 99 99 NEDBANK 14 6909 5971 252 252 363 363 363 363 ABSA: Deposit Bank Account 405-439-4655 19,599 13,364 21,364 18,442 13,357 21,898 ABSA: Business Bank Account 405-439-4663 - - - (2) - (221) ABSA: Trust Bank Account 405-442-3252 ------ABSA: Salary Bank Account 405-439-4671 24 - - 24 - - ABSA: Unpaid Bank Account 405-439-4689 366 145 162 366 145 162 FNB: Business Bank Account 620-1247-1257 78 275 1,275 78 275 1,275 ABSA 4,057,945,928 2,198 5,586 - 2,198 5,586 - ABSA 4054394710 ------ABSA 4054394702 ------ABSA 4055177264 ------ABSA CURRENT ACCOUNT 4054428422 ------NEDBANK CURRENT ACCOUNT 1284025993 1,729 203 590 1,729 211 590 NEDBANK CURRENT ACCOUNT 1284111555 15 5,618 735 15 16 - CALL DEPOSIT 284513195/00001 - - - - 5,618 735 CALL DEPOSIT 284513195/00004 ------CALL DEPOSIT 50000834990 ------ABSA 4058050233 ------ABSA 4071972149 - - 1,943 - - 1,943 ABSA 4059925738 ------ABSA Trust 4054398803 - - - - 1 - ABSA Operating 4054398772 - - - - (48,101) (49,875) ABSA Salaries 4054398811 - - - - (1,710) (1,982) ABSA - Current account 4054394825 ------ABSA - Ring-fenced Accounts 4066072619 836 1,793 1,084 836 1,793 1,080 ABSA BANK LIMITED 4050839158 ------Direct Debit Bankserv Account 4054394728 ------Main Account ( Payment Account ) 4054394736 ------Bank Chardes Account 4054394744 ------Salaries Account 4054394752 ------Unpaid Cheques Account 4054394760 ------Sundry Account 4054636689 ------On-Site Collections Account 4054799051 ------On-Site Collections Unpaids Account 4054799564 ------Third Party Vendors Payment Account 4055151157 ------New Electronic Collections Account 4055151238 ------Pre-Paid Account 4055418357 ------ABSA Primary Bank Account 4054394778 ------ABSA Trust Bank Account 4054862450 - - 2 - - - FNB Call Account 6202064153 557 601 - 557 601 - Absa Special Savings 9097335459 2 2 2 2 2 - Absa Special Savings Salaries 9099384175 1,155 137 1,161 1,155 137 1,161 Nedbank 32 day Notice 48554837 38 41 45 38 41 45 ABSA Current 570142348 418 18 96 418 18 104 ABSA Computicket Account 570147854 5 6 11 5 6 - Nedbank Current Account 1905092075 19 19 - 19 19 - ABSA 4054394786 ------ABSA 4054394809 ------ABSA 4054394817 ------ABSA Deposit Account 4054400460 - 160 54 1 160 54 MAX TRUST FUND 4068745070 ------ABSA - Main Account 4054394833 - - - (2,217) (2,077) 66 ABSA - Salaries Account 4054394841 ------ABSA - Sports Club Account 4067062497 51 - - 51 ------Petty Cash and Float Accounts - - - 343 399 397

TOTAL 46,079 484,388 191,322 68,650 417,992 179,504

372 373 372 373 City of Johannesburg Group Annual Financial Statements for the year ended 30 June 200

APPENDIX H DIRECTOR'S REMUNERATION AS AT 30 JUNE 2009

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

Johannesburg Fresh Johannesburg Johannesburg Metropolitan City Power Pikitup Johannesburg Johannesburg Johannesburg Produce Market Johannesburg Civic Property Company Development Trading Company Johannesburg (Pty) Johannesburg Johannesburg (Pty) Roads Agency (Pty) Johannesburg City Social Housing Johannesburg Metropolitan Bus Roodepoort City City Housing Company (Pty) Ltd Theatre (Pty) Ltd Johannesburg Zoo (Pty) Ltd Agency (Pty) Ltd (Pty) Ltd Ltd Water (Pty) Ltd Ltd Ltd Parks Company (Pty) Ltd Tourism Company Services (Pty) Ltd Theatre (Pty) Ltd R 000s R 000s R 000s R 000s R 000s R 000s R 000s R 000s R 000s R 000s R 000s R 000s R 000s R 000s R 000s R 000s

Non-Executive Directors 646 181 609 639 631 1,039 1,420 1,100 762 863 871 795 395 965 452 - Directors' fees 646 181 609 639 631 1,039 1,381 1,100 762 863 871 795 395 965 452 Travel ------39 ------

Chief Executive Officer 1,257 438 999 85 1,206 912 2,436 2,430 1,554 1,106 1,579 1,234 1,053 1,062 887 - Annual remuneration 958 111 850 63 1,059 727 2,093 1,204 1,350 691 1,353 982 860 720 719 Performance bonus 134 212 87 - 87 - 214 727 182 60 194 177 - - 102 Car allowance - 72 - 22 60 111 129 330 - 94 32 63 156 324 66 Contributions to UIF, medical and pension funds 165 43 62 - - 74 - 169 22 261 - 12 37 18 -

Chief Finance Officer 1,381 656 553 - 772 671 511 1,313 948 643 1,168 1,041 666 905 414 - Annual remuneration 1,072 504 482 - 677 501 450 877 631 480 834 671 497 647 333 Performance bonus 125 80 36 - 72 - - 157 - - 259 181 - 78 49 Car allowance - 38 - - 23 144 61 144 188 65 75 79 72 12 32 Contributions to UIF, medical and pension funds 184 34 35 - - 26 - 135 129 98 - 110 97 168 -

Other Executive Directors - - - - - 409 ------Annual remuneration - - - - - 329 ------Performance bonus ------Car allowance - - - - - 75 ------Contributions to UIF, medical and pension funds - - - - - 5 ------

Senior Management 2,942 2,449 3,095 3,916 4,865 3,491 8,329 3,584 7,963 1,846 5,635 4,216 2,045 2,583 1,137 - Annual remuneration 2,326 1,591 2,519 3,103 3,836 1,559 6,905 2,428 6,423 1,541 4,449 3,251 1,343 1,978 957 Performance bonus 289 229 313 349 329 - 540 284 546 - 760 266 - 169 48 Car allowance - 447 - 464 700 130 884 608 878 234 426 574 280 298 132 Contributions to UIF, medical and pension funds 327 182 263 - - 1,802 - 264 116 71 - 125 422 138 -

APPENDIX H DIRECTOR'S REMUNERATION AS AT 30 JUNE 2008

Non-Executive Directors 657 274 456 - 467 802 1,361 1,666 709 1,092 - 674 659 1,568 452 - Directors' fees 657 274 456 - 467 802 1,319 1,666 709 1,092 - 674 659 1,568 439 Travel ------42 ------13

Chief Executive Officer 1,152 1,255 1,043 1,204 1,033 459 1,985 2,198 2,494 960 1,580 2,520 933 1,463 725 - Annual remuneration 1,044 990 698 970 1,023 351 1,654 1,160 2,452 960 1,386 838 712 1,441 725 Performance bonus 81 193 238 183 - - 203 550 - - 194 112 75 20 - Car allowance - 72 - 48 - 74 128 330 29 - - 73 88 - - Contributions to UIF, medical and pension funds 27 - 106 2 10 34 - 158 13 - - 1,497 58 2 -

Chief Finance Officer 918 542 282 677 856 246 1,339 1,208 651 350 1,241 886 554 846 449 - Annual remuneration 770 433 244 460 847 177 1,030 794 542 350 1,034 613 409 624 449 Performance bonus - 70 - 149 - 37 181 138 26 - 207 98 - 76 - Car allowance - 38 - 68 - 24 128 155 65 - - 174 48 12 - Contributions to UIF, medical and pension funds 148 - 38 - 9 8 - 121 17 - - 1 97 134 -

Other Executive Directors - - - 576 - - - - 5,233 - 5,185 - - - 565 - Annual remuneration - - - 576 - - - - 4,248 - 4,346 - - - 565 Performance bonus ------301 - 839 - - - - Car allowance ------527 ------Contributions to UIF, medical and pension funds ------157 ------

Senior Management 2,198 1,611 3,372 2,266 4,616 1,493 7,413 5,858 7,515 2,983 3,561 2,163 2,356 2,140 251 - Annual remuneration 1,792 1,306 2,480 1,682 4,570 1,257 5,510 3,913 5,784 2,983 3,237 1,535 1,559 1,650 251 Performance bonus 179 166 382 343 - 38 913 373 515 - 324 201 - 136 - Car allowance - 138 - 237 - 105 990 899 979 - - 422 328 227 - Contributions to UIF, medical and pension funds 227 - 510 4 46 93 - 672 239 - - 6 469 127 -

374 375 City of Johannesburg Group Annual Financial Statements for the year ended 30 June 200

APPENDIX H DIRECTOR'S REMUNERATION AS AT 30 JUNE 2009

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

Johannesburg Fresh Johannesburg Johannesburg Metropolitan City Power Pikitup Johannesburg Johannesburg Johannesburg Produce Market Johannesburg Civic Property Company Development Trading Company Johannesburg (Pty) Johannesburg Johannesburg (Pty) Roads Agency (Pty) Johannesburg City Social Housing Johannesburg Metropolitan Bus Roodepoort City City Housing Company (Pty) Ltd Theatre (Pty) Ltd Johannesburg Zoo (Pty) Ltd Agency (Pty) Ltd (Pty) Ltd Ltd Water (Pty) Ltd Ltd Ltd Parks Company (Pty) Ltd Tourism Company Services (Pty) Ltd Theatre (Pty) Ltd R 000s R 000s R 000s R 000s R 000s R 000s R 000s R 000s R 000s R 000s R 000s R 000s R 000s R 000s R 000s R 000s

Non-Executive Directors 646 181 609 639 631 1,039 1,420 1,100 762 863 871 795 395 965 452 - Directors' fees 646 181 609 639 631 1,039 1,381 1,100 762 863 871 795 395 965 452 Travel ------39 ------

Chief Executive Officer 1,257 438 999 85 1,206 912 2,436 2,430 1,554 1,106 1,579 1,234 1,053 1,062 887 - Annual remuneration 958 111 850 63 1,059 727 2,093 1,204 1,350 691 1,353 982 860 720 719 Performance bonus 134 212 87 - 87 - 214 727 182 60 194 177 - - 102 Car allowance - 72 - 22 60 111 129 330 - 94 32 63 156 324 66 Contributions to UIF, medical and pension funds 165 43 62 - - 74 - 169 22 261 - 12 37 18 -

Chief Finance Officer 1,381 656 553 - 772 671 511 1,313 948 643 1,168 1,041 666 905 414 - Annual remuneration 1,072 504 482 - 677 501 450 877 631 480 834 671 497 647 333 Performance bonus 125 80 36 - 72 - - 157 - - 259 181 - 78 49 Car allowance - 38 - - 23 144 61 144 188 65 75 79 72 12 32 Contributions to UIF, medical and pension funds 184 34 35 - - 26 - 135 129 98 - 110 97 168 -

Other Executive Directors - - - - - 409 ------Annual remuneration - - - - - 329 ------Performance bonus ------Car allowance - - - - - 75 ------Contributions to UIF, medical and pension funds - - - - - 5 ------

Senior Management 2,942 2,449 3,095 3,916 4,865 3,491 8,329 3,584 7,963 1,846 5,635 4,216 2,045 2,583 1,137 - Annual remuneration 2,326 1,591 2,519 3,103 3,836 1,559 6,905 2,428 6,423 1,541 4,449 3,251 1,343 1,978 957 Performance bonus 289 229 313 349 329 - 540 284 546 - 760 266 - 169 48 Car allowance - 447 - 464 700 130 884 608 878 234 426 574 280 298 132 Contributions to UIF, medical and pension funds 327 182 263 - - 1,802 - 264 116 71 - 125 422 138 -

APPENDIX H DIRECTOR'S REMUNERATION AS AT 30 JUNE 2008

Non-Executive Directors 657 274 456 - 467 802 1,361 1,666 709 1,092 - 674 659 1,568 452 - Directors' fees 657 274 456 - 467 802 1,319 1,666 709 1,092 - 674 659 1,568 439 Travel ------42 ------13

Chief Executive Officer 1,152 1,255 1,043 1,204 1,033 459 1,985 2,198 2,494 960 1,580 2,520 933 1,463 725 - Annual remuneration 1,044 990 698 970 1,023 351 1,654 1,160 2,452 960 1,386 838 712 1,441 725 Performance bonus 81 193 238 183 - - 203 550 - - 194 112 75 20 - Car allowance - 72 - 48 - 74 128 330 29 - - 73 88 - - Contributions to UIF, medical and pension funds 27 - 106 2 10 34 - 158 13 - - 1,497 58 2 -

Chief Finance Officer 918 542 282 677 856 246 1,339 1,208 651 350 1,241 886 554 846 449 - Annual remuneration 770 433 244 460 847 177 1,030 794 542 350 1,034 613 409 624 449 Performance bonus - 70 - 149 - 37 181 138 26 - 207 98 - 76 - Car allowance - 38 - 68 - 24 128 155 65 - - 174 48 12 - Contributions to UIF, medical and pension funds 148 - 38 - 9 8 - 121 17 - - 1 97 134 -

Other Executive Directors - - - 576 - - - - 5,233 - 5,185 - - - 565 - Annual remuneration - - - 576 - - - - 4,248 - 4,346 - - - 565 Performance bonus ------301 - 839 - - - - Car allowance ------527 ------Contributions to UIF, medical and pension funds ------157 ------

Senior Management 2,198 1,611 3,372 2,266 4,616 1,493 7,413 5,858 7,515 2,983 3,561 2,163 2,356 2,140 251 - Annual remuneration 1,792 1,306 2,480 1,682 4,570 1,257 5,510 3,913 5,784 2,983 3,237 1,535 1,559 1,650 251 Performance bonus 179 166 382 343 - 38 913 373 515 - 324 201 - 136 - Car allowance - 138 - 237 - 105 990 899 979 - - 422 328 227 - Contributions to UIF, medical and pension funds 227 - 510 4 46 93 - 672 239 - - 6 469 127 -

374 375