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2015/2016 Annual Report

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2015/2016 Annual Report 2015/2016 Annual Report This Annual Report is drafted in terms of the Local Government: Municipal Finance Management Act, 2003 (Act 56 of 2003) and the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000). Page 1 of 346 1.1 Mayors Foreword King Sabata Dalindyebo Municipality is one of the fastest growing municipalities in South Africa and the third biggest municipality in the Eastern Cape after the two Metros Nelson Mandela Bay and Buffalo City. As a fastest growing South African municipality, King Sabata Dalindyebo Municipality faces the pressures of a modern, developing towns which are the need to overcome the divisions of the past, and having to deal with a history of inequality and the painful attendant history of separate development. They are the challenges that have resulted from decades of skewed development priorities. And today they are exacerbated by increasing urbanisation, the pressures of broader economic uncertainty and limited resources. With Mthatha town being the former capital city of the erstwhile Transkei government, people from the rural settlement move to Mthatha for better economic opportunities. The consequences of this seemingly unstoppable urbanisation are such that Mthatha is now overcrowded and continues to do so. It is my view as an Executive Mayor of King Sabata Dalindyebo Municipality that, any government must be willing to address those problems that do not appear to have ready solutions, and see them as opportunities. In so doing, the King Sabata Dalindyebo municipality has committed itself to the principles of innovation and dynamic leadership – both of which, we believe, are essential qualities that will help take us forward into the future. As the King Sabata Dalindyebo Municipality we have in the 2015/2016 financial year obtained an improved qualified audit opinion with two items, and I am confident that we will achieve better audit results in the next financial year. It must be emphasised that building a strong primary agriculture both as Economic Page 2 of 346 Development focus and as a feedstock for the Wild Coast SEZ is very crucial for King Sabata Dalindyebo Municipality. The use of science, data and technology (ICT is going to be a bedrock of all planning) behind every step of a value chain and hence the need to have shared platforms with product design capabilities for commodities and or including creating a think tank of value chain experts is also key, as the municipality has partnered with USAASA to ensure broadband connectivity for the entire municipal area.. The performance of the Municipality is fairly stable but need to turnaround the image and posture of the KSD Local Municipality. Improvement of the capabilities of the Municipality requires special attention to strengthening the systems and capacities of the employees including ensuring a great measure of professionalism, commitment with a brand promise. Improving the workers commitment to serve and the general culture of work to earn their benefits. We will continue to face our challenges and actively address the issues that require attention in order to ensure that we build the best possible city for our citizens, visitors and investors. Through Municipal Infrastructure Grant, Presidential Intervention, Department of Energy and Provincial Treasury Grant funding 2015/2016 financial year saw a massive investment on infrastructure service delivery in the King Sabata Dalindyebo Municipality. In all of this, we will continue to be guided by the five key strategic pillars as reflected in our 2030 vision for King Sabata Dalindyebo Municipality. The broad vision of KSD in that of a city characterised by the following: An economy based the development of value addition of improved local primary production innovative culture, realisation of Blue economy and alternative energy potential that will reduce unemployment significantly Development of an integrated public transport including rail, bus and taxi, air freight and passenger flights Best quality utilities especially electricity provision and access with less outages. Creation of a vibrant cultural industry based ion heritage and local citizenry. Heightened focus on land use management, land administration and land tenure models that enhance economic value of rural land property The location promotion and marketing of the city must centre on networking nationally and internationally in order to establish links that are required to develop specific industries such as health sector, tourism, Blue Economy and export of goods. Secondly the reputation and prestige of the KSD Municipality must be nurtured and will probably depend on, amongst others, in the next five years. Page 3 of 346 Accessibility of the political leadership and administrative by citizens through a dedicated civil service. A clear business case for investment opportunities for KSD Economic potential. Quality and Aesthetic of the city scope and management of public spaces. Institutionalised Capacity for dialogue involving civil society, business, labour and government and ensure acceptance of cosmopolitanism With respect, it is my honour and privilege to present the 2015/2016 Annual Report of King Sabata Dalindyebo municipality. Councillor D M Zozo EXECUTIVE MAYOR Page 4 of 346 1.2 Municipal Manager’s Overview It is an honour to present to you the King Sabata Dalindyebo Municipality’s 2015/2016 Annual Report, which has been prepared in compliance with Section 46 of the Local Government: Municipal Systems Act No. 32 of 2000 and Sections 121 and 127(2) of the Local Government: Municipal Finance Management Act No. 56 of 2003. The 2015/2016 Annual Report is displaying positive signs of an improving Municipality which is striving to develop its administrative and governance capacity by ensuring compliance with the laws governing municipalities. King Sabata Dalindyebo Municipality has not recovered from the Land Mark case, which presented serious cash flow challenges for the municipality, threatening the future survival and the financial sustainability of King Sabata Dalindyebo Municipality. This case present an unfortunate reality of land claims which has locked all the land for future development of the municipality and thus thwarting the attainment of the Spatial Development Framework objectives. Though attempts are being made to address the above problems, availability of land for future development of King Sabata Dalindyebo Municipality remains a thorny issue. Despite the above challenges, King Sabata Dalindyebo Municipality remains grateful of the support received through the Presidential Intervention which saw a massive investment in the Page 5 of 346 infrastructure of the area. Provincial Treasury has as well in the 2015-2016 funded electricity and road by-passes to an amount of R300 000 000, 00 (three hundred million). These interventions have significantly changed the face of the municipality by improving better services for the communities of King Sabata Dalindyebo Municipality. Over and above land availability problem of King Sabata Dalindyebo, the following challenges are persistent within the municipality: Cleanliness of the settlements and towns ;( Mthatha and Mqanduli) Electricity outages Water and sewer spillage Revenue collection Parking problems in town Illegal street trading Lack of resources for implementing the KSD Master Plan Lack of funding for mega projects; On-going litigation against the municipality Qualified audit opinion from Auditor-General. Administrative stability is very crucial for King Sabata Dalindyebo, as well as disciplined workforce that embraces the ethos of clean governance and effective administration. It has equally been identified as crucial to promote the brand of King Sabata Dalindyebo Municipality by forging meaningful partnerships with citizens, local business and government, the Municipality is set to address these challenges in an integrated and collective manner. Finally, I would like to record my sincere appreciation for the support received from the political leadership in Council. Administratively, I would like to thank the Executive Management Team and the entire staff of KSD for their hard work and efforts, without which the service delivery progress reported in this Annual Report would not have been possible. M ZENZILE MUNICIPAL MANAGER 1.3 OVERVIEW OF KING SABATA DALINDYEBO LOCAL MUNICIPALITY Page 6 of 346 MUNITATA BUILDING – KSD HEAD OFFICE KSD Municipality is comprised of an area of 3027Km² is strategically located equidistant from major cities and towns namely: East London in South West, Queenstown in North West and Kokstad on North Eastern scale; all ± 200 km from KSD. It is composed of 36 wards; 9 urban and 27 rural. It is the third largest secondary Municipality in the Eastern Cape: the city of Mthatha with Mqanduli town being an integral part of King Sabata Dalindyebo Local Municipality. It has a population of almost ½m million inhabitants and 105 240 households. The population has a significantly large youth cohort of 73%. Most people converge around the urban and per 1 – urban wards. The municipality has a staff establishment of 2186 employees of which 7 are section 56 managers and the municipal manager. The vacancy rate is high at 45%. KSD Municipality is the largest contributor to OR Tambo District municipality economy (±70%) with a GDR – R of R12.1 billion. The economic base comprises Government services and community at 46%, wholesale and retail, 15% fiance and real estate, trade and services. The unemployment rate
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