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MADIBENG LOCAL MUNICIPALITY 2018/19 ANNUAL REPORT “Madibeng, the Prosperous Platinum and Green Tourism City” 2018/2019 MADIBENG LOCAL MUNICIPALITY | ANNUAL REPORT 1 “Madibeng, the Prosperous Platinum and Green Tourism City” 2 2018/2019 MADIBENG LOCAL MUNICIPALITY | ANNUAL REPORT MADIBENG LOCAL MUNICIPALITY 2018/19 ANNUAL REPORT “Madibeng, the Prosperous Platinum and Green Tourism City” 2018/2019 MADIBENG LOCAL MUNICIPALITY | ANNUAL REPORT 3 CONTENTS CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY 7 1.1 Executive Mayor Foreword 7 1.2 Municipal Manager’s Foreword 9 1.3 Municipal Overview 11 1.3.1 Municipals Functions, Populations Demographics & Environmental Overview 11 1.3.2 Financial Health Overview 18 CHAPTER 2 – GOVERNANCE 20 2.1 Introduction to Governance 20 2.2 Component A: Political Governance 20 2.2.1 Introduction to Political Governance 20 2.2.2 Functionality of Council & its Committees 23 2.2.3 Compositions of political parties during 17/18 financial year 24 2.3 Component B: Administrative Governance 25 2.3.1 Introduction to Administrative Governance 25 2.3.2 Changes in Senior Administrative Structure 26 2.4 Component C: Public Accountability and Participation 27 2.4.1 Introduction to Integrated Development and Planning 27 2.4.2 IDP Public Participation 27 2.4.3 IDP Participation and Alignment 28 2.5 Budget Public Participation Programme 28 2.6 Component D: Corporate Governance 29 2.6.1 Overview Corporate Governance 29 2.6.2 Overview Risk Management 29 2.7 Anti-Corruption and Fraud Prevention 32 2.8 Overview Supply Chain Management 33 2.9 Municipal By-laws/ Policies Development Programme 33 2.10 Website 34 2.11 Municipal Oversight Committees 35 2.11.1 Audit Committee Report 35 2.11.2 Municipal Public Accounts Committee Report 38 CHAPTER 3 – SERVICE DELIVERY PERFORMANCE 40 3.1 Introduction to Service Delivery Performance 40 3.2 Component A: Water Provision 43 3.2.1 Introduction to Water Provision 43 3.3 Component B: Water Sanitation 45 3.3.1 Introduction to Sanitation Provision 45 3.4 Component C: Electricity (Energy) 46 3.4.1 Introduction to Electricity 46 3.5 Component D: Roads and Storm Water 48 3.6 Component E: Human Settlement and Planning 49 3.6.1 Housing and Land Administration 51 3.6.2 Building Control Services 53 3.6.3 Urban Renewal and Rural Development 54 3.6.4 Spatial Planning and Land use Management 55 3.7 Component F: Local Economic Development, Tourism and Agriculture 57 3.7.1 Introduction to Economic Development 57 3.8 Component G: Community and Social Services 62 3.8.1 Parks, Nursery & Cemeteries 63 3.8.2 Environmental Management 64 3.8.3 Social Services, Libraries, Sports Development, Arts & Culture 64 3.8.4 Solid Waste Management 65 3.9 Component H: Public Safety and Security 67 3.9.1 Fire and Disaster Management 68 3.9.2 Security Services 68 3.9.3 Traffic Management 68 4 2018/2019 MADIBENG LOCAL MUNICIPALITY | ANNUAL REPORT CONTENTS CHAPTER 4 – ORGANISATIONAL DEVELOPMENT PERFORMANCE 70 4.1 Component A: Introduction to Municipal Personnel 120 4.1.1 Media Relations 120 4.1.2 Internal Communications 120 4.1.3 Support to Offices/ Departments and External Stakeholders 120 4.1.4 Directorate IDP, PMS and Legal Services 120 4.1.4.1 Legal Services 120 4.1.6 Directorate Corporate Support Services 121 4.2 Component B: Organisational Design and Development 125 4.3 Component C: Workforce Capacity Development 126 4.3.1 Skills Development, Related Expenditure & Financial Competency Regulations 126 4.3.2 Information & Communication Technology 128 4.3.3 Municipal Administration and Secretariat 128 CHAPTER 5: MUNICIPAL FINANCIAL PERFORMANCE 129 5.1 Component A: Statement of Financial Performance 129 5.2 Component B: Spending against Capital Budget 130 5.3 Component C: Other Financial Matters 134 APPENDICES 135 Appendix A: Councillors Committees Allocation and Councillor Attendance 135 Appendix B: Council Committees and their Purpose 139 Appendix C Third Level Management/Tier Administrative Structure 140 Appendix D Municipal Powers and Functions 141 Appendix E Ward Committees Reporting and Meetings 142 Appendix G(1) Audit Committee Recommendations and Resolutions 144 Appendix G(2) Municipal Public Accounts Committee Recommendations/Resolutions 2017/18 145 Appendix J Disclosure of Financial Interests 149 ANNEXURES 150 Auditor - General Audit Findings (Annexure A) Annual Financial Statements (Annexure B) Post Audit Action Plan ( Annexure C) 2018/2019 MADIBENG LOCAL MUNICIPALITY | ANNUAL REPORT 5 INTRODUCTION The Municipal Annual Report is one of the three (3) important documents that the Municipality must develop and table before Council in every financial year. The other two (2) documents are the Integrated Development Plan (IDP) reviewed annually, which is a 5-Year long Council Strategic Planning Document, and the Municipal Annual Budget, which make provision for the collection of municipal revenue and the allocation of financial resources towards the implementation of the capital as well as the operational programmes of Council. The Integrated Development Plan and the Annual Budget are both forward-looking documents in that they are prepared and adopted ahead of the commencement of the relevant financial year, setting out the pre-determined developmental objectives with regard to what the municipality intends doing and how. The annual report, which is the document we are concerned with here, is backward-looking, reporting on the actual performance at the end of the preceding financial year on how the Municipality has implemented the Integrated Development Plan and Budget through the Service Delivery & Budget Implementation Plan. In terms of section 121 of the Local Government: Municipal Finance Management Act, 2003 (Act 56 of 2003), the Municipality must for each and every financial year, prepare the annual report for submission and consideration by Council of a municipality within a period of nine (9) months from the end of a financial. The purpose of the annual report is: · To provide a record of the activities of the municipality during the financial year to which the annual report relates, both financial (budget implementation) as well as non-financial (service delivery performance) information to provide feed-back to the community and all other key stakeholders. · To provide a report on the performance against the budget of the municipality for that financial year. · To promote accountability to the local community for the decisions the Municipality made throughout the financial year. Furthermore Section 46 of the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000) provides that the Municipality must prepare for each financial year a annual performance report consisting of the following: · Performance of the Municipality and of each service provider during the financial year. · Comparison of the performance of the financial year of reporting with the performance of the previous financial year. · Measures taken to correct and improve the performance, where it was not satisfactory. The annual performance report must form part of the Municipality’s annual report prepared and handled in terms of Chapter 12 of the Local Government: Municipal Finance Management Act, 2003. The MFMA Circular 63: Annual Report Update dated 26 September 2012, provides for the submission of the draft annual report within a period of two (2) months from the end of the financial year in lieu of the annual performance report in terms of section 46 of the Local Government: Municipal System Act, 2000. This draft annual report is prepared with due consideration of the legislator and policy framework mentioned above. It is against this background the 2018/19 Annual Report for Madibeng Local Municipality is compiled and submitted to council for adoption. 6 2018/2019 MADIBENG LOCAL MUNICIPALITY | ANNUAL REPORT CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY 1.1 EXECUTIVE MAYOR’S FOREWORD CLLR J.M MOTHIBE INTRODUCTION I am pleased to present the Municipality’s 2018/19 Annual Report, covering the period 1 July 2018 to 30 June 2019. The report provides a measure of our progress in line with the Municipality’s long term strategic roadmap of building a developmental state within our space that is able to adequately respond to the challenges of poverty, unemployment, inequality and under development therein. This Annual Report is being presented just a year after South Africa celebrated the Centenary of the late State President Nelson Mandela and the late Mama Albertina Sisulu. The two gallant giant leaders of our Democratic State were the epitome of what selflessness is all about. They distinguished themselves as credible, diligent and ethical leaders whose sole objective was to serve the People of South Africa and Africa, without any expectations for personal gains and gratification. Furthermore, this Annual Report covers a year during which our Country held National and Provincial elections, and ushered in the 6th Democratic Administration, which developed and approved the 2019 -2024 Medium Term Strategic Framework to guide its work over the next five (5) years. In the current global uncertainty, municipalities operate in a continuously changing and complex environment, and should be able to quickly adapt to both local and global geopolitical emerging dynamics. In this regard, we would like to take this opportunity to acknowledge the efforts of the Municipality’s leadership (politically and administratively) in positively advancing the Municipality’s strategic, transformative and developmental imperatives during the year; and to thank them for their commitment in progressively implementing the objectives espoused in our Integrated Development Plan (IDP), Local Economic Development Strategy, and other incidental strategies aimed at positioning the Madibeng as a Prosperous Platinum and Green Tourism City where people can live, work and play. All of these initiatives are happening within the context of a changing and increasingly unpredictable socioeconomic and geopolitical developmental paradigm and environment. In 2018/19, we attained noticeable achievements as part of the Municipality’s drive to create a better life for all its residents.
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