KWAZULU NATAL PROVINCIAL EXECUTIVE COUNCIL INTERVENTION IN TERMS OF SECTION 139(1)(b) AT UMKHANYAKUDE DISTRICT MUNICIPALITY 16 FEBRUARY 2016

PRESENTATION TO THE NATIONAL COUNCIL OF PROVINCES SELECT COMMITTEE ON COOPERATIVE AND TRADITIONAL AFFAIRS

Ms NOMUSA DUBE NCUBE (MPL) MEC FOR COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS TABLE OF CONTENTS

1. PURPOSE

2. FORMALITIES

3. BACKGROUND

4. BASIS FOR INVOKING SEC 139 AT UMKHANYAKUDE

5. RESOLUTIONS OF THE PROVINCIAL EXECUTIVE COUNCIL

6. SUMMARY PROGRESS REPORT ON THE RECOVERY PLAN

7. DROUGHT RELATED MATTERS 1 1. PURPOSE

The purpose of the this report is present to the Select Committee on Cooperative Governance and Traditional Affairs (the Select Committee) the reasons for the intervention in terms of section 139 of the constitution at Umkhanyakude DM as well as ancillary matters 2 2. FORMALITIES • On 7 October 2015 the Provincial Executive resolved to intervene in Umkhanyakude District Municipality in terms of section 139(1)(b) of the constitution • On 08 October 2015 the Minister and the NCOP were notified of the decision to intervene in line with section 139(2) of the constitution • The Minister approved the intervention within the prescribed timeframe of 28 days • The NCOP on the other hand has until the 6 th of April 2016 to either approve or disapprove the intervention 3

4 3(a) BACKGROUND UMKHANYAKUDE DM AND FAMILY OF MUNICIPALITIES POLITICAL REPRESENTATION

NUMBER NUMBER EXCO POLITICAL PARTY MUNICIPALITY OF SEATS OF SEATS SEATS REPRESENTATION ON COUNCIL 2011 2016 2011 ANC IFP NFP Umkhanyakude DM 29 31 5 14 10 5 Umhlabuyalingana LM 34 35 6 22 8 4 Jozini LM 40 40 8 21 15 4 Big 5 False Bay LM* 7 Plenary 3 3 1 25 Hlabisa LM* 16 3 4 9 3 Mtubatuba LM 38 40 5 16 15 7 * Municipalities merging after the 2016 local government election

Notes • As can be seen above, no party obtained sufficient majority to govern on its own at the District Municipality, thus the municipality is governed by a coalition between the ANC and the NFP • The UKDM ExCo is constituted as follows: 2 ANC, 2 IFP and 1 NFP. 4 3(b) BACKGROUND (cont.) • For a number of years, the municipality was limping from one problem to another. The problems were indicated by persistent governance, financial and service delivery challenges that the municipality was unable to resolve despite provincial and national government support. • During the first quarter of 2015 several indicators from the municipality itself, from KZN Cogta, from the DWS and from Provincial Treasury showed that the municipality was experiencing serious governance, financial and service delivery problems. • As a consequence, on 27 March 2015 Cogta proposed a self- imposed Recovery Plan and Payment Plan which was accepted by the municipal council. However management failed to implement the Recovery Plan and Payment Plan between April and June 2015.

5 6 3(c) BACKGROUND (cont.) • In July and August 2015 KZN Cogta and Provincial Treasury deployed a Support Team comprising of financial, technical and governance experts at the municipality in line with Sec 154 of the Constitution. • Engagements were held with different stakeholders on the 8 th , the 21 st and the 24 th of September 2015 including the municipality itself, DWS, Salga, Provincial Treasury, Political Leadership and Labour Unions. • It was at these engagements where it became apparent that the Support Team was unlikely to succeed in turning around the municipality unless the intervention was elevated to a section 139 constitutional intervention. This course of action was then recommended to the Provincial Executive by the MEC for CoGTA

6 7 4(a) BASIS FOR INVOKING SEC 139 AT UMKHANYAKUDE

GOVERNANCE AND INSTITUTIONAL MATTERS • The Council and the Executive Committee were meeting regularly, however the implementation monitoring (oversight) and lack of consequence management pointed to poor performance on the part of ExCo and Council.

• Portfolio committees and the Municipal Public Accounts Committee (MPAC) were not meeting as they were supposed to, thus failing to exercise effective political oversight over management.

• The municipality did not have an Audit Committee following the expiry of contracts of the previous committee. An Interim Audit Committee was appointed for three months pending the appointment of the Audit Committee proper. Their contracts had also expired before the Audit Committee proper could be appointed.

• The municipality admitted that its organogram was bloated and could not be funded on a sustainable basis and that the municipality had in past years hired and absorbed staff in non- core functions. The municipality was failing to rectify this matter.

• Despite numerous attempts by KZN Cogta to support the municipality and family of municipalities, intergovernmental structures as well as the associated technical support structures remained dysfunctional. 78 4(b) BASIS FOR INVOKING SEC 139 AT UMKHANYAKUDE (cont.)

FINANCIAL VIABILITY AND MANAGEMENT

• The cash flow situation at the municipality had deteriorated to the point where the municipality was persistently failing to meet its financial commitments . Thus the ability to pay back its short term liabilities, was 0.65:1 against the norm of 1.5–2:1 (circ. 71 National Treasury, 17 January 2014).

• Although management had developed a cash flow plan, there was no commitment and urgency to take decisions that were critical to the sustainability of the institution

• The 2014/15 AFS of the municipality showed that the municipality had only about R12.6 million in cash and cash equivalents against unspent conditional grants of R31.5m as at 30 June 2015 pointing to the use of conditional grants to fund operating expenditure

• The Municipal Manager had admitted that the municipality had outstanding creditors of R130m as at 30 June 2015 which indicated poor financial and project management

9 4(c) BASIS FOR INVOKING SEC 139 AT UMKHANYAKUDE (cont.)

FINANCIAL VIABILITY AND MANAGEMENT

• The Provincial Treasury found both the operational and capital budget of the municipality to be unfunded / in deficit to the amount of R117m, this was later reduced to R57m.

• The internal control environment remained weak. The management persistently failed to implement policies and procedures of the municipality leading to the ballooning of Unauthorized, Irregular or Fruitless and Wasteful (UIWF) expenditure.

• The municipality adopted cost cutting measures at the beginning of 2015 but management failed to implement the measures.

• During the 4 th quarter (ending 30 June 2015) the KZN Cogta quarterly assessment found that the municipality’s poor revenue collection record persisted at 44% against the norm/benchmark of 95% (circ. 71 National Treasury, 17 January 2014).

8 10 4(d) BASIS FOR INVOKING SEC 139 AT UMKHANYAKUDE (cont.)

BASIC SERVICE DELIVERY FAILURES

• The municipality remained one of the poorest performers in terms of the “blue drop” assessments conducted by DWS.

• The municipality remained one of the poorest performers in terms of the “green drop” assessments conducted by DWS.

• Project management and supervision of consultants was poor.

9 4(e) BASIS FOR INVOKING SEC 139 AT UMKHANYAKUDE (cont.)

FINANCIAL VIABILITY AND MANAGEMENT

• The municipality consistently failed to produce an updated audit action plan to track the progress being made in addressing the issues raised by the AG in the 2013/14 management letter and audit report.

• Due to cash flow challenges the the municpaltiy is struggling to pay its creditors.

• Persistent poor audit outcomes: Qualified (2012/13), Qualified (2013/14) and Disclaimer (2014/15)

10 4(f) BASIS FOR INVOKING SEC 139 AT UMKHANYAKUDE (cont.)

BASIC SERVICE DELIVERY FAILURES

• The municipality was utilizing conditional grant funds, MIG funds in particular, to meet operating expenditure, in contravention of the grant conditions as prescribed in sec 17 of the Division of Revenue Act, 2015

• The absence of a revised Water Service Development Plan (WSDP). According to DWS, the last revision was dated February 2012

• Under-spending on the 2014/2015 Municipal Infrastructure Grant (MIG) programme resulted in R40m of the original allocation of R206m being stopped in terms of section 19 of the Division of Revenue Act (Act 10 of 2014)

• The municipality had lost the 2014/2015 implementing agent status for the Municipal Water Infrastructure Grant (MWIG)

• The municipality also lost their Accelerated Community Infrastructure Programme (ACIP) funding for 2015/16 which was given to Mhlathuze Water to implement the 3 waste water treatment works (WWTW) refurbishments for uMkhanyakude (R13m) 11 4(g) BASIS FOR INVOKING SEC 139 AT UMKHANYAKUDE (cont.)

BASIC SERVICE DELIVERY FAILURES

• The expenditure on Repairs and Maintenance in 2013 / 2014 was 2.46% of PPE (Property, Plant and Equipment), as extracted from the AFS for that financial year.

• The 2014/15 budget for repairs and maintenance for the year was slightly higher at 2.52% of PPE. The norm is 8% (circ. 71 National Treasury, 17 Jan 2014).

• The municipality did not have a planned and preventative maintenance programme in place, nor funds to finance such a programme. Consequently, this had a negative impact on confidence levels in the value placed on PPE.

12 4(h) BASIS FOR INVOKING SEC 139 AT UMKHANYAKUDE (cont.)

OTHER MATTERS

• Back To Basics Support Plan - The municipality took too long to adopt their Back to Basics Support Plan. The assessment of the programme in the municipality as at end of quarter four (30 June 2015) showed that the municipality had to be re-categorised from being challenged to being a municipality requiring intervention.

• Labour Disputes – The municipality was experiencing persistent unprotected labour strikes due to the failure by management to address labour matters.

• Service Delivery Protests - All service delivery protests recorded by Cogta’s Rapid Response Unit in municipalities within the Umkhanyakude family of municipalities during the period 1 January 2014 to 31 August 2015 were about water supply issues in the main. 13 5(a) RESOLUTIONS OF THE PROVINCIAL EXECUTIVE COUNCIL

• Intervention in terms of section 139 (1)(b) of the constitution be implemented and Cogta assumes the functions specified in sections 51, 54a, 56 and 67(1)(h) of the municipal systems act and the District Municipal functions in terms of the Intergovernmental Framework Relations Act, 2005

• Directed that a Recovery Plan aimed at securing the municipality’s ability to meet its obligations to provide basic services or its financial commitments be imposed on the municipality, which Recovery Plan will - (i) be prepared in accordance with national legislation; and - (ii) binds the municipality in the exercise of its executive authority, but only to the extent necessary to solve the crisis in its financial affairs and service delivery failures

• A Ministerial Representative be appointed at Umkhanyakude District Municipality (Mr MM Sithole) Chapter 9 of the Municipal Finance Management Act, 53 of 2003 as amended as well as becoming a compulsory signatory on the municipality’s bank accounts.

14 5(b) RESOLUTIONS OF THE PROVINCIAL EXECUTIVE COUNCIL (cont.)

- Ensure implementation of financial systems, policies and procedures

- Undertake all steps prescribed in sections 54A and 56 of the Municipal Systems Act, 2000 and associated regulations

- Undertake all functions listed in section 51 of the Municipal Systems Act 32 of 2000, as amended;

- Ensure the implementation of all governance systems and procedures, including oversight mechanisms; and the functionality of all Council structures, including the Local Labour Forum

- Ensure implementation of findings of any forensic investigations undertaken by the municipality, agency or the relevant MEC in terms of section 106 of the Municipal Systems Act, 2000 or any other relevant legislation;

- Undertake the functions referred to in section 67(1)(h) and Schedule 2 of the Municipal Systems Act, read with any other relevant legislative provisions dealing with disciplinary matters, including criminal and civil action; 15 5(c) RESOLUTIONS OF THE PROVINCIAL EXECUTIVE COUNCIL (cont.) - Ratify all decisions of the Municipal Council and its committees, prior to implementation;

- Ratify all decisions taken by the Municipal Manager and section 56 Managers in terms of delegated or original authority;

- Implement a system to control and approve all expenditure including a system to reduce and contain operating expenditure (cost curtailment);

- Review the organizational structure of the municipality, and implement remedial actions which may be required;

- Prepare and implement a strategy to deal with service delivery failures with particular focus on water and sanitation including a strategy to deal with service delivery protests;

- Ensure the municipality complies with the requirements of the Intergovernmental Framework Relations Act, 2005. 16 • Endorsed the appointment of a financial expert to assist the Ministerial Representative in the implementation of the terms of reference including acting as Chief Financial Officer as may be necessary. 5(d) RESOLUTIONS OF THE PROVINCIAL EXECUTIVE COUNCIL (cont.)

• Cogta requested further support from the Provincial Executive Council to identify R40million required for the operations and maintenance (at Umkhanyakude DM) as a matter of urgency to attend to operational and maintenance challenges

17 6. SUMMARY PROGRESS REPORT ON THE IMPLEMENTATION OF THE RECOVERY PLAN

18

20 6.1 SUMMARY PROGRESS REPORT ON THE IMPLEMENTATION OF THE RECOVERY PLAN AS AT 28 JANUARY 2016

Focus Area/KPA Remedial Targets met Targets Percentage Actions /completed not met Progress (completed) Basic Services & Infrastructure 11 2 (18%) 9 18% Financial Viability and Management 43 13 (30%) 30 30% Good Governance and Public Participation 11 3(27%) 8 27% Local Economic Development and Planning 4 0 4 0% Institutional Development & Transformation 18 0 18 0% OVERALL TOTAL 87 18 (21%) 69 21%

The main area of challenge is with regards to provision of Basic Services & ageing infrastructure. Various reasons for poor performance have been put forward by the Ministerial Representative leading the intervention team at Umkhanyakude.

19 6.2(a) UMGENI WATER INTERVENTION

PROJECT SCOPE • The aim of the intervention is to rehabilitate existing Water Supply (and Sanitation) Schemes as prioritized by the UKDM WSA.

PROJECT FOOTPRINT • Umkhanyakude District Municipality is a Water Services Authority (WSA). It consists of five local municipalities (LM’s) and one District Management Area (DMA). These local municipalities are Umhlabuyalingana (KZ271), Jozini (KZ272), Big Five False Bay (KZ273), Hlabisa (KZ274) and Mtubatuba (KZ275) and St Lucia Park (KZDMA27). The respective coverage of the local municipalities is illustrated in the Figure below.

20 6.2(b) UMGENI WATER INTERVENTION

IMMEDIATE INTERVENTION BACKGROUND • During the course of October 2015, UW undertook a visual assessment of water and sanitation infrastructure. The findings of the report were then discussed and subsequently prioritized by the WSA. • Thereafter UW had implemented immediate interventions. Work is currently being undertaken in all LM’s. The implementation (water and sanitation) covers the following system components: – Raw water source; – Raw water conveyance line; – Water treatment plant/ waste water treatment plant unit processes; – Potable water storage; – Distribution network; – Safety/Health issues; 21 6.2(c) UMGENI WATER INTERVENTION

WATER SOURCES AND IMMEDIATE INTERVENTIONS • The main rivers are the Pongola, Umfolozi, Mkuze, Hluhluwe, Msunduze and Ngwavuma. The major dams are the, Hluhluwe and Jozini dams and Lake Sibayi, which is a freshwater lake. Furthermore there are a large number of production boreholes or handpumps for a rudimentary level of service.

• Immediate Interventions for all Local Municipalities (1-3 months) • Rehabilitation of ground water sources (production boreholes, hand pumps, windmills etc); • Shemula bulk line rehabilitation; • Jozini rising main to the command reservoir to feed the Machibini area; • Sewerage treatment ponds in Mtubatuba, St Lucia, KwaMsane and Mosvoldt Hospital; • Various leaks within the bulk reticulation; • Installation of 107 Jojo tanks; 22 • Repairs to moveable assets viz the water tankers and; • Supply of diesel generators -single and three phase for areas where there is no power supply or where there was a conversion from hand pumps to production boreholes. 6.2(d)(i) UMGENI WATER INTERVENTION • Progress to date – Jozini Municipality Project Name Status Challenge (% Complete) Shemula System - parallel line and replacement of 90 Pipe vandalism and theft auxiliary valves (Resilient seated and Air Valves) reported to WSA

Machibini – rising main to command reservoir 50 Numerous illegal connections on the existing rising main Jobe Malobeni – pipe leaks and t-piece to feed reservoir 100 Comment: Qondile Borehole - Hand pump converted to production 100 The fixing of the borehole infrastructure has benefited thousands of Ophande – repaired vandalized pump station and 100 households and prevented service Hlalanathi - Install dedicated pipeline from package plant 100 delivery protests that to Hlalanathi were on the rise, 23 especially in Jozini Municipal area 6.2(d)(ii) UMGENI WATER INTERVENTION • Progress to date – Mtubatuba Municipality Project Name Status Challenge (% Complete ) KwaBhoboza line - Repair 3No. leaks & broken auxillary services 100

Repair to 350mm ac pipe leak 100 Northdale Township - 1 No Sewer Pump and Electrical Panel 100 replaced KwaMsane Township leaks 100 Mtuba WTP - 2No. boreholes 100 Nkolokotho WTP – redirect raw water to abstraction point 100

Mtuba WWTP – replace the electrical panels and new 100 sewerage pumps St. Lucia line- repair auxillary valves 100 Monzi – drilled new borehole 70 PEF to review water quality and provide solution for compliance to SANS 241 St Lucia Town – drilled one borehole 70 Nkombose - Supply and install 2No. Jojo tanks 100 24 6.2(d)(iii) UMGENI WATER INTERVENTION • Progress to date – Umhlabuyalingana Municipality

Project Name Status Challenge (% Complete)

KwaMajola - Replace burnt pump and repair control panel 100

Phelandaba A – diesel supply to Generators for water supply to 100 community

Ngutshane – diesel supply and jojo tanks 100

KwaSonto – replaced burnt pump and faulty panel 100 25 6.2(d)(iv) UMGENI WATER INTERVENTION • Progress to date – Big Five False Bay Municipality Project Name Status Challenge (% Complete) To commence with Borehole drilling at the following: Mnqobokazi, Mduku (Nomtshwiliza), Qomukuphila in 1st week of February 2016

• Progress to date – Hlabisa Municipality

Project Name Status Challenge (% Complete) Macekeni A – new pump/motor installed, piping cables. 90

Macekeni B – New pump/motor for production borehole. 70 Jojo Tanks to be installed Temporary motor protection until panels are replaced Sitezi – New pump motor for production borehole 100

Siyathuthuka - New pump motor for production borehole 100

Siyaphambili - New pump motor for production borehole 100

Mthombeni : re-set panels (previously overloaded) 90 26 6.2(d)(v) UMGENI WATER INTERVENTION

COGTA ALLOCATIONS AND FINANCIAL IMPLICATIONS UW ALLOCATION EX FUNDS AVAILABLE BUDGET ALLOCATION VAT OPERATING VAT FOR EXPENSES IMPLMENTATION RAND VALUE 33,000,000.00 4,620,000.00 28,380,000.00 2,000,000.00 26,380,000.00

ENGINEERING DISCIPLINE Nov-15 Dec-15 Jan-16 Feb-16 Total MECHANICAL 4,433,130.00 4,433,130.00 ELECTRICAL 3,069,654.57 4,022,453.69 7,092,108.26 CIVIL 3,287,576.00 3,287,576.00 TOTAL EX VAT 7,502,784.57 7,310,029.69 14,812,814.26

27 6.3 CASH FLOW PROJECTIONS FOR THE REMAINDER OF 2015/16 FY

• The cash flow situation in the municipality remains precarious largely due to the fact that at the beginning of the financial year management used the 2015/2016 Equitable Share revenue to pay creditors of the previous financial year.

• Efforts to reduce costs will have to be intensified in order to break this cycle.

28 7. DROUGHT RELATED MATTERS

29

31 DROUGHT

30 7.1 STATUS OF DROUGHT IN MTUBATUBA LOCAL MUNICIPALITY

SOURCE PLANT PLANT AVERAGE CURRENT REDUCTION IN COMMENTS CAPACITY PRODUCTION AVERAGE PRODUCTION % IN ML/DAY (ML/DAY) -PRIOR PRODUCTION TO 2014 (ML/DAY) uMfolozi River Mtubatuba Water Supply 20.00 15.00 3.50 82.50% Drought and Treatment and Boreholes System Upgrade failures

Hluhluwe Dam Hluhluwe Phase 1 Water 10.00 7.50 1.50 85.00% Drought , 20% dam level Supply Hluhluwe River Hluhluwe Phase 2 Water 1.80 1.50 1.40 22.22% Drought , 20% dam level Supply System uMfolozi River Nkolokotho Water Supply 5.00 6.50 2.20 56.00% Drought System Manzamnyama Hlabisa Water Supply System 1.00 0.80 0.40 60.00% Drought and Boreholes River and dysfunctional Boreholes Boreholes Mpembeni Water Supply 0.38 0.22 0.22 43.16% Ageing infrastructure i.e. System Borehole pump 31

33 7.2 STATUS OF DROUGHT IN JOZINI LM

SOURCE PLANT PLANT AVERAGE CURRENT REDUCTION IN COMMENTS CAPACITY PRODUCTION AVERAGE PRODUCTION % (ML/DAY) (ML/DAY) - PRODUCTION PRIOR TO 2014 (ML/DAY) Jozini Dam Mkuze Water Supply 1.50 2.20 2.20 -46.67% The treatment works was modified System to cater for increased production , with quality compromise

Jozini Dam Nondabuya Water 0.50 0.31 0.31 38.00% Slow Sand filter walls collapsed Supply System Jozini Dam Jozini New Water 5.00 4.86 4.90 2.00% Supply System Jozini Dam Jozini Old Water 3.00 2.48 2.50 16.67% Supply System Jozini Dam Makhonyeni Water 0.80 0.68 0.45 43.75% Ageing infrastructure i.e. pressure Supply System filters and pumps Jozini Dam Block 6 Water 0.50 0.30 0.10 80.00% Dependant on Farmers from water Supply System canal Jozini Dam Mjindi Central 0.35 0.30 0.30 14.29% Water Supply 32 System Jozini Dam Malobeni Water 0.50 0.42 0.25 50.00% Ageing infrastructure i.e. abstraction Supply 7.3 STATUS OF DROUGHT IN UMHLABUYALINGANA LM

SOURCE PLANT PLANT AVERAGE CURRENT REDUCTION IN COMMENTS CAPACITY PRODUCTIO AVERAGE PRODUCTION (ML/DAY) N PRODUCTION % (ML/DAY) (ML/DAY) PRIOR TO 2014 Lake Sibaya Mbazwana 2.00 2.30 1.30 35.00% Lake Sibaya level drop Water Supply System Shengeza and Manguzi Water 2.00 1.30 0.52 73.85% Borehole dysfunctional , Gezisa Rivers Supply System Both Manguzi and Gezisa (1.00 ML and 1 Ml/day)

Nkanini River Enkanyezini 0.50 0.63 0.57 -13.80% The treatment works and Boreholes Water Supply production increased due to System additional borehole Boreholes Manguzi Airfield 1.00 0.91 0.44 56.50% Boreholes dysfunctional

Boreholes Thengane Water 1.00 0.91 0.29 71.30% Boreholes dysfunctional Supply System 7.4 CURRENT INTERVENTIONS

• There has been good progress in regards to the procurement and use of water tanker trucks and water tanks. • However, the implementation of the boreholes projects and the refurbishment of existing projects had encountered initial challenges. • These interventions are currently being fast tracked in order to mitigate for the late start. • Table 5 below provides a summary of both the interventions funded by DWS and the expenditure to date. 33 7.5 STATUS OF DWS FUNDED INTERVENTIONS

SUB-PROJECTS BUDGET AMOUNT RECOMMENDED/ AMOUNT SPENT % SPENT INVOICED PENDING PAID WITH FINANCE

Boreholes 17,101,900 9,481,959 2,945,589 6,536,370 9,481,959 55.4%

Refurbishment & Upgrade 51,746,827 28,749,815 24,658,569 24,658,569 47.7%

Water tanks 2,000,000 1,789,414 1,729,186 1,729,186 86.5%

NWRI Water Tanker Procurement 22,311,396 22,311,396 22,311,396 22,311,396 100.0%

Phase 2-Interim Water Tankering 19,651,272 18,130,999 3,522,962 11,782,966 15,305,928 77.9%

TOTALS R 112,811,395 R 80,463,583 R 6,468,551 R 67,018,487 R 73,487,038 65%

34 7.6 CURRENT INTERVENTIONS

• Water Tanks: Table 6 below provides further details in regards to the number of water tanks (Jojo tanks) installed within the various wards of each LM. • The total number of Jojo tanks installed in uMkhanyakude DM (UKDM) by Mhlathuze Water since the start of the drought now stands at 81. • Any savings on the drought implementation projects by uMkhanyakude DM will be used for the procurement of further Jojo tanks. 35 7.7 STATUS OF INSTALLATION OF WATER TANKS (JOJO TANKS)

MUNICIPALITY NUMBER OF JOJO TANKS ALLOCATED COMPLETION

UMkhanyakude Offices 2 Jojo tanks with Steel Stands Delivered on the 14.07.2015

Umhlabuyalingana 10 Jojo tanks with concrete stands Completed

Umhlabuyalingana Ward 2; 5; 7& 16 10 Jojo tanks with concrete stands Completed on the 08.07.2015

Jozini Ward 17; 10; 08; 07 & 01 10 Jojo tanks with concrete stands Completed on the 10.07.2015

Jozini Ward 18; 20; 09; 12; 15; 05; & 14 10 Jojo tanks with concrete stands Completed on the 14.07.2015

Big 5 False Bay 9 Jojo tanks with concrete stands Completed on the 08.07.015

Mtuba Ward 13; 14;17; 18;19 10 Jojo tanks with concrete stands Completed on the 16.07.2015

Mtuba Ward 3,4,6,8,11,13 10 Jojo tanks with concrete stands Completed on the 09.07.2015

Hlabisa 05 Jojo tanks with concrete stands Completed on the 05.07.2015

05 Jojo tanks with concrete stands Completed on the 03.07.2015

TOTALS 79 Jojo tanks with concrete stands & 2 Jojo Completed on the 16.07.2015 tanks and 2 steel stands 36 7.8 CURRENT INTERVENTIONS

• Water Tanker Trucks: A total of 15 tankers were originally procured and delivered to UKDM by DWS. A further 5 additional tankers have since been provided. • 2 tankers are provided by Mhlathuze Water per week. • There are currently 3 official Water points for filling up of tankers (Jozini, Shemula and Mkuze). • Tankers are no longer filling up at Mtubatuba and Hluhluwe, due to the shortage of production at Mtubatuba WTW and Hluhluwe WTW. • Water for tankers is now to be sourced from Empangeni (from uMhlathuze Municipality). • However, uMhlathuze Municipality requires a R273 942.00 deposit. UKDM are having to consider the possibility of filling up tankers at private boreholes in Mtubatuba, as the prevailing drought continues to minimise the available options.

37 7.9 CURRENT INTERVENTIONS

• Refurbishment and Upgrade Projects: No less than four water supply projects were identified for both refurbishment and upgrade, under the DWS funding as a drought intervention. • The cumulative budget allocated for the four projects is • R 51,746,827 and a total of 24,658,569 has been claimed by the DM to date, all of which has been paid by DWS. • There were initial delays at the outset of these projects but the UKDM has agreed to fast track these refurbishment and upgrade projects funded by DWS as a short to medium term drought intervention.

38 7.10 LIST OF REFURBISHMENT AND UPGRADE PROJECTS (DWS FUNDED)

Project Approval Intervention Project Value Type Date Mtubatuba - Emergency 15/04/2015 R10 305 857 Mtubatuba Heights to KwaMsane 15/04/2015 R22 766 50 8 Refurbish and upgrade water supply 5 infrastructure – Ingwavuma Borehole 15/04/2015 R5 497 135 Equiping Refurbish and upgrade water supply infrastructure – Hluhluwe Phase 2A 15/04/2015 R13 177 327 Refurbishment & Upgrade TOTAL APPROVED FOR IMPLEMENTATION R51 746 827

39 7.11 PLANNED MEDIUM TO LONG TERM INTERVENTIONS

• The primary medium to long term intervention is to fast track the implementation of the bulk water supply projects (funded by the DWS RBIG grant) and the reticulation water supply projects (funded by MWIG and MIG grants).

40