South African Local Government Association (SALGA)
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CONTACTS FOR SALGA OFFICES Published by SALGA SALGA LOGO PO Box 2094 Pretoria 0001 SOUTH AFRICA 1DWLRQDO2ƯFH /LPSRSR Telephone: (012) 369 8000 { Telephone: (015) 291 1400 { Tel: +27 12 369 8000 Fax: (012) 369 8001 Fax: (015) 291 1414 Fax: +27 12 369 8001 ASSOCIATION GOVERNMENT SOUTH AFRICAN LOCAL Physical Address: Postal Address: Physical Address Postal Address Menlyn Corporate Park PO Box 2094 127 Marshall Street 3ULYDWH%DJ Web: www.salga.gov.za Block B Pretoria Polokwane Polokwane 175 Corobay Avenue 0001 0699 0700 RP229/2019 Cnr Garsfontein and Corobay ISBN: 978-0-621-47533-3 Waterkloof Glen ext11 0SXPDODQJD Title of Publications: SALGA 2017/2018 Annual Report Pretoria Telephone: (013) 752 1200 { Fax: (013) 752 5595 (DVWHUQ&DSH Physical Address Postal Address South African Local Government Association (SALGA) Telephone: (043) 727 1150 { SALGA House PO Box 1693 63((&+%8%%/( % Fax: (043) 7271156/67 YDQ5HQVEXUJ6WUHHW Nelspruit Nelspruit 1200 Physical Address Postal Address @SALGA_Gov %HUHD7HUUDFH2ƯFH%OGJ P.O Box 19511 1200 First Floor Suite 3 East London A NNUAL REPO R T Berea 5214 1RUWK:HVW SALGATV East London Telephone: (018) 462 5290 { 5214 Fax: (086) 686 1845 Physical Address Postal Address salga.org.za A 625,1),1,7<6,*1 )UHH6WDWH SALGA House PO Box 1286 Telephone: (051) 447 1960 { 56 William Street Klerksdorp Fax: (051) 430 8250 Wilkoppies 2570 Physical Address Postal Address Klerksdorp 0F*UHJRU6WUHHW PO Box 14 2571 East End Bloemfontein Bloemfontein 9300 1RUWKHUQ&DSH 9300 Telephone: (053) 836 7900 { Fax: (053) 833 3828 2018/19 REPORT ANNUAL *DXWHQJ Physical Address Postal Address Telephone: (011) 276 1150 { Block Two PO Box 3183 Fax: (011) 276 3636/7 Montrio Corporate Park Kimberley Physical Address Postal Address Number 10. Oliver Road, 8300 3rd Floor Braampark PO Box 32161 0RQXPHQW+HLJKWV Forum 2, 33 Hoofd Street Braamfontein Kimberley Braamfontein 2017 8300 2017 :HVWHUQ&DSH Kwazulu Natal Telephone: (021) 446 9800 { Telephone: (031) 817 0000 { Fax: (021) 418 2709 7KHORJRV\PEROE\LWVGHVLJQHPERGLHVWKHFRUHYDOXHVRI 7KHVSHHFKEXEEOHVRIWKHORJR V\PERO FDUU\WKHPHVVDJH Fax: (031) 817 0034 Physical Address Postal Address the SALGA brand. of the brand. Physical Address Postal Address WKƮRRU6WUDQG6WUHHW PO Box 185 4th Floor Clifton Place, PO Box 1525 Cape Town Cape Town 7KHLQƬQLW\VLJQRUWKHn6oFKDUDFWHULVWLFRIWKHORJR V\PERO They say 19 Hurst Grove, Durban 8000 8000 VLJQLƬHVWKHRQJRLQJDQGSURJUHVVLYHFKDQJHRI6$/*$DVLW 0XVJUDYH 4000 continues on the journey of constant improvement. • We are informed Durban • We are consultative 4001 7KLVHOHPHQWRIWKHORJRV\PEROLVHV • We listen • Limitless • We advocate • Boundless r :HLQƮXHQFH • Potential • We represent • Possibility • Harmony • Balance • Unity VISION, MISSION AND VALUES SALGA MANDATE 7UDQVIRUPORFDOJRYHUQPHQWWRHQDEOHLWWRIXOƬOLWVGHYHORSPHQWDOPDQGDWH 9,6,21 V To be an association of 9$/8(6 I municipalities that is at the Responsive S S E I FXWWLQJHGJHRITXDOLW\DQG Innovative U O 01 02 03 04 05 06 sustainable services Dynamic L N A Excellence V LOBBY, KNOWLEDGE & EMPLOYER CAPACITY SUPPORT & STRATEGIC ADVOCATE & INFORMATION BODY BUILDING ADVICE PROFILING REPRESENT SHARING Lobby, advocate, Act as an employer Build the capacity Support and advise %XLOGWKHSURƬOH Serve as the protect and ERG\UHSUHVHQWLQJ of the municipality our members on a DQGLPDJHRIORFDO custodian of represent the all municipal as an institution, UDQJHRILVVXHVWR JRYHUQPHQWZLWKLQ ORFDOJRYHUQPHQW interest of local members and, as well as the DVVLVWWKHHƪHFWLYH South Africa, as LQWHOOLJHQFHDQG JRYHUQPHQWDW E\DJUHHPHQW leadership and execution of their well as outside the WKHNQRZOHGJH relevant structures associate members. technical capacity mandate. country. hub and centre of and platforms. of both councillors ORFDOJRYHUQPHQW DQGRƯFLDOV LQWHOOLJHQFHIRUWKH sector MISSION 0,66,21 To be consultative, informed, mandated, credible and accountable to our membership and to provide value for money VALUE PRINCIPLES INSPIRING SERVICE DELIVERY 'UDZLQJIURPWKHIRXQGLQJSULQFLSOHVWKDWHVWDEOLVKHG6$/*$LQWKHIROORZLQJRSHUDWLQJSULQFLSOHV FKDUDFWHULVHRXUYDOXHRƪHULQJ 5(63216,9( %HLQJTXLFNDQGƮH[LEOHLQUHVSRQGLQJWRPHPEHUQHHGV ,1129$7,9( ([SORULQJQHZZD\VRIGRLQJWKLQJVDQGSURYLGLQJPHPEHUVZLWKIUHVKDQGXQFRQYHQWLRQDOVHUYLFHV '<1$0,& %HLQJƮH[LEOHDQGDGDSWLQJWRFKDQJHWRVHUYLFHPHPEHUVHƪHFWLYHO\DQGHƯFLHQWO\ (;&(//(1&( 6HUYLQJPHPEHUVZLWKSULGHDQGH[FHOOHQFH CONTENTS Presentation of the SALGA Annual Report ............................02 PART E General Information ....................................................................03 HUMAN CAPITAL Highlights 2018/19 ......................................................................04 • Managing Human Capital ...................................................88 • Corporate Social Responsibility ........................................97 PART A EXECUTIVE OVERVIEW PART F • Foreword by the President ..................................................08 GOVERNANCE FRAMEWORK • 2YHUYLHZE\WKH&KLHI([HFXWLYH2ƯFHU .........................10 • Corporate Governance Overview......................................99 • Report of the Audit and Risk Committee ........................118 PART B • Report of the Performance Management and STRATEGIC OVERVIEW Remuneration Committee ..................................................122 • 6$/*$3URƬOH .........................................................................13 • National and International Mandates ..............................14 PART G • Membership and Stakeholders ..........................................16 FINANCIAL INFORMATION • National and Provincial Structure .....................................19 • 5HYLHZE\WKH&KLHI)LQDQFLDO2ƯFHU ...............................130 • Statement of Gifts, Donations and Sponsorships PART C in Cash .....................................................................................139 STRATEGIC PLANNING • Report on Compliance with Section 98(2)(B)(I) of the • Strategic Framework ............................................................22 Labour Relations Act, 66 of 1995 ......................................140 • Annual Performance Planning ...........................................23 • Report of the Auditor-General of South Africa .............142 • Annual Financial Statements .............................................144 PART D PERFORMANCE REPORT Abbreviations and Acronyms ....................................................219 • Statement of Responsibility for Performance Municipal members of SALGA ..................................................224 Information .............................................................................26 • Performance against Strategic Goals 2018/19 .............27 • Goal 1: Sustainable Inclusive Economic Growth and Spatial Transformation ........................................................29 • Goal 2: Good Governance and Resilient Municipal Institutions ..............................................................................55 • Goal 3: Financial Sustainability of Local Government and Greater Fiscal Equity ....................................................69 • Strategic Enablers and administration ............................76 01 SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION | ANNUAL REPORT 2018/19 PRESENTATION OF THE SALGA ANNUAL REPORT On behalf of the National Executive Committee and Presidency of the South African Local Government Association (SALGA) and in terms of the SALGA Constitution and governance framework, as adopted by the National Member’s Assembly in March 2008, I am pleased to present the SALGA Annual Report for the period 1 April 2018 to 31 March 2019 to the Parliament of South Africa DQGDOO6$/*$VWDNHKROGHUVDQGRWKHULQWHUHVWHGDQGDƪHFWHGSDUWLHV 7KLVUHSRUWUHƮHFWV6$/*$oVSHUIRUPDQFHLQIXOƬOOLQJLWVGHYHORSPHQWDOPDQGDWHDQGHQDFWLQJLWVUROHLQDQGFRQWULEXWLRQWR DGGUHVVLQJORFDOJRYHUQPHQWFKDOOHQJHVGXULQJWKHSDVWƬQDQFLDO\HDU 7KH$XGLWRU*HQHUDORI6RXWK$IULFDKDVDXGLWHGWKHSHUIRUPDQFHLQIRUPDWLRQDQGDQQXDOƬQDQFLDOVWDWHPHQWVLQWKLVUHSRUWDV HQGRUVHGE\WKH1(&EDVHGRQWKHDVVXUDQFHRIDFFXUDF\E\6$/*$oVPDQDJHPHQWDQGLQWHUQDODXGLWIXQFWLRQ SALGA remains committed to strengthening the transformation of local government so that, as South Africans, we can change WKHZRUOGDURXQGXVWRLPSURYHRXUOLYHOLKRRGVJURZWKHHFRQRP\DQGSDUWLFLSDWHZLWKFRQƬGHQFHLQ6RXWK$IULFDoVQHZGDZQ and the dynamic landscape of the 4th,QGXVWULDO5HYROXWLRQ Councillor Thembi Nkadimeng SALGA President 31 July 2019 02 SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION | ANNUAL REPORT 2018/19 GENERAL INFORMATION Registered name South African Local Government Association (SALGA) Registration number LR/2/6/3/350 Registration date 22 May 1998 Registered address Menlyn Corporate Park, Block B, 175 Corobay Avenue, cnr Garsfontein Road, Waterkloof Glen Ext 11, Pretoria 0181 Postal address PO Box 2094, Pretoria 0001 Telephone +27 (0)12 369 8000 Fax +27 (0)12 369 8001 Email LQIR#VDOJDRUJ]D Website KWWSZZZVDOJDRUJ]D External auditor Auditor-General of South Africa 300 Middel Street, New Muckleneuk, Pretoria 0181 Bankers ABSA Contact person for this report Pauline Matsaung, Strategic Planning, SALGA Tel +27 (0)12 369 8000 SPDWVDXQJ#VDOJDRUJ]D Reporting period 1 April 2018 to 31 March 2019 Reporting cycle Annually Date of last report 2018 RP 229/2019 ISBN 978-0-621-47533-3 03 SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION | ANNUAL REPORT 2018/19 HIGHLIGHTS 2018/19 “As we let our own light shine, we unconsciously give other people permission to do the same.” - Nelson Mandela 7TH &RQVHFXWLYHFOHDQDXGLWRXWFRPHRSLQLRQIURPWKH$XGLWRU*HQHUDOZLWKIRUWKHƬUVWWLPHQRƬQGLQJVRQ predetermined