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ANNUAL REPORT 2015/16 CONTACT INFORMATION LIST OF REGISTERED NAME Chris Hani Development Agency SOC Ltd ACRONYMS REGISTERED OFFICE ADDRESS 64 Prince Alfred Street CEO Chief Executive Officer Queenstown, 5320 Eastern Cape CFO Chief Financial Officer South Africa CHDA Chris Hani Development Agency CHDM Chris Hani District Municipality TELEPHONE NUMBER 045 838 2195 CHREDS Chris Hani Regional Economic Development Strategy CRDP Comprehensive Rural Development Plan FAX NUMBER 045 838 5944 DFI’s Developmental Finance Institutions EC Eastern Cape EMAIL ADDRESS [email protected] ELM Emalahleni Local Municipality FET Further Education and Training College WEBSITE ADDRESS www.chda.org.za IDP Integrated Development Plan IPAP Industrial Policy Action Plan EXTERNAL AUDITORS The Auditor General, IPED Integrated Planning and Economic Development South Africa (AGSA) IYLM Intsika Yethu Local Municipality LLM Lukhanji Local Municipality MFMA Municipal Finance Management Act, Act No. 56 of 2003 MSA Municipal Systems Act, Act No. 32 of 2000 MSAA Municipal Systems Amendment Act, Act No. 44 of 2003 NDP National Development Plan PIDS Provincial Industrial Development Strategy PFMA Public Finance Management Act PGDP Provincial Growth and Development Plan SETA Sectoral Educational and Training Authority SEZ Special Economic Zones SMME Small Micro and Medium Enterprises CONTENTS 01 GENERAL INFORMATION 01 02 PERFORMANCE INFORMATION 16 03 GOVERNANCE 50 04 HUMAN RESOURCES MANAGEMENT 68 05 FINANCIAL INFORMATION 74 /16 01 GENERAL INFORMATION Municipal Entity’s General 02 Information Foreword from the 03 Executive Mayor Chairperson’s Statement 05 Chief Executive Officer’s 07 Report Statement of 11 Responsibility Strategic Overview 12 Organisational Structure 13 “Development is about transforming the lives of people, not just transforming economies” (Joseph Stiglitz) Tree Nursery Project, Ncora GENERAL INFORMATION Country of incorporation and domicile Postal address South Africa 64 Prince Alfred Street Queenstown Legal form of entity 5320 Municipal Entity - State Owned Company Bankers Nature of business and principal activities First National Bank Carry out the promotion and implementation of the local economic development initiatives and Auditors investment promotion in Chris Hani District Auditor-General of South Africa Company registration number Internal Auditor 2012/033437/07 Sizwe Ntsaluba Gobodo Registered office Chief Executive Officer (CEO) 64 Prince Alfred Street Mr T Mashologu Queenstown 5320 Contacts TEL 045 838 2195 Business address FAX 045 838 5944 64 Prince Alfred Street EMAIL [email protected] Queenstown 5320 CHRIS HANI DEVELOPMENT AGENCY ANNUAL REPORT 2015/16 02 EXECUTIVE MAYOR’S FOREWORD Economic development finance is a strategic and a dealing with the root causes of problems that affect us powerful tool in the fight against poverty, unemployment here, such as poverty, inequality, and unemployment. and inequality within the Chris Hani District Municipality. On prosperity, driving enterprise development and Successful development agencies throughout South Africa jobs is critical for supporting the economic expansion have, depending on their mandates, made significant and markets of the future for Chris Hani District contributions to economic expansion, sector development, Municipality business in other areas of South Africa. industry renewal, enterprise growth, transformation and inclusive development, among other economic and societal We continue to achieve against our commitments. By goals. The Chris Hani Development Agency is one example the end of 2015/16 the CHDA had provided agricultural and carries the mandate of economic development within input production support to emerging farmers for close the district. to R2 million, completed land preparation, planting and harvesting activities of 425 hectares of maize in the In 2015/16 the Chris Hani District Municipality continued Inxuba Yethemba locality. A total of 22 learners are to lead the economic development initiative through an currently having their tertiary education funded through integrated approach between the Integrated Planning acceptance into the Mayor’s Bursary Fund, which is and Economic Development Directorate (IPED) and the currently being administered by the agency. The students Chris Hani Development Agency (CHDA). Our economic are enrolled for various qualifications in agriculture, development programmes and humanitarian efforts, mechatronics, engineering, tourism studies, information through the bursary and SMME funds amongst others, had technology and related fields. For the year under review, deep development impact in the community despite some a total of R 1.9 million expenditure was realized in the challenges and this calls for speed in implementation, provision of student accommodation, school books, and innovation in conceptualising programmes and efficiency stationery, as well as tuition and food stipends to bursary in utilising scarce resources. fund participants. Apart from the above the learners were also provided with laptop computers. The Agency has Improving the lives of the Chris Hani District Municipality been further tasked to expand the resources available to people is ultimately the best long-term solution for the youth in order to improve their skills, resulting in the 03 CHRIS HANI DEVELOPMENT AGENCY ANNUAL REPORT 2015/16 CHDA successfully security learnership and internship place where economic development efforts are being programmes targeted at Chris Hani District youth. In made but need unique area specific solutions. The addition, I am pleased to announce that the Agency was district municipality and the Agency are working on involved in assisting the office of the Executive Mayor in sustainable solutions for these challenges. rolling out funding support to SMME’s, in the interest of developing local small business and creating employment opportunities. A total of R3.1 million was paid out to I must thank the council, particularly the MMC responsible local small businesses, for securing of much – needed for local economic development and the Board of the equipment, machinery, and commercial technologies. Agency for their support and effort in achieving the progress By supporting programmes and good governance in the we have made so far. I am particularly humbled by the fact district, we are standing up for the values we believe in. that you have entrusted me with the responsibility to lead. Our investment in economic development is helping the Chris Hani District Municipality to stand tall in the Eastern Cape and South Africa. The Agency continues to scale up and broaden its work on inclusive growth and jobs. Economic development is unequivocally the only way we can end generational poverty and grant dependency for good. We will making it easier for job-creating entrepreneurs and small businesses in the district to grow their businesses through the development of the agri-parks, industrial parks, and other economic means. There are however, many challenges within the communities CNLR MXOLISI KOYO and other community support structures, some have EXECUTIVE MAYOR long historical backgrounds and others may be due CHRIS HANI DISTRICT MUNICIPALITY to short-sightedness. These are not unique to any 17 December 2016 CHRIS HANI DEVELOPMENT AGENCY ANNUAL REPORT 2015/16 04 CHAIRPERSON’S STATEMENT Economic development at local government level is one of the primary linkages of development between the GOVERNANCE district municipality and the community, with conflicting expectations and demands for greater efficiencies and The Board of Directors of the Agency has a dual mandate agility. The mandate of the Chris Hani Development firstly, that of being an advisor in the sense that it consults Agency seeks to balance the stringent legislative with management regarding strategic and operational expectations with demands of the community for direction of the Agency and secondly, it monitors the Agency greater efficiencies and agility through facilitating performance to ensure that it operates within the approved budget and achieves the set performance targets. The and delivering economic services in order to expand Agency board in the year under consideration has satisfied employment, eradicate poverty and reduce inequality both these functions. within the Chris Hani District Municipality. This called for the development of a long term strategy with clear The governance structures have been set up and are objectives to guide management and the Agency. functional as evidenced by the clean audit report, and the Chief Executive Officer and executive team all on five year STRATEGY performance based contracts. The board has set up three subcommittees looking at audit, The Board developed and approved the strategy of risk and ethics, human resources and remuneration and the Agency for the next five years 2014 - 2019. The project finance and investment. Shareholder and other stakeholders will be able to retrace the achievement of the strategic objectives in the current The primary purpose of the Audit, Risk and Ethics and future annual reports for the next five years. The Board Committee is to assist the Agency by fulfilling its oversight is aware of the dynamism of the environment within which responsibilities to ensure that the organisation has and the Agency operates and has committed to review the maintains effective, efficient and transparent systems of strategy on an annual basis in order to ensure that it is financial, risk management, governance and internal
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