JOHANNESBURG ROADS AGENCY SOC (LTD) Reg. No. 2000/028993/07

1st Quarter Report (2015/16)

FINAL 13 October 2015

In terms of Section 121 of the Municipal Finance Management Act 56 of 2003 (as amended) and Section 46 of the Municipal Systems Act, 32 of 2000 (as amended)Companies Act 71 of 2000

COMPANY INFORMATION:

Registration number: 2000/028993/07

66 Pixley Seme Street Johannesburg Registered address: 2001

Johannesburg 2000

Postal address: Johannesburg Roads Agency Private Bag X70 Braamfontein 2017

Telephone number: (011) 298-5001

Fax number: (011) 298-5178

Website: www.jra.org.za

Bankers: Standard Bank of SA Limited

Auditors: Auditor General South Africa (AGSA)

Vision

The best city roads authority that enables economic growth and sustainability.

Mission

We commit to provide quality roads that are accessible, safe and liveable for our communities”

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Table of Contents

CHAPTER 1: LEADERSHIP & CORPORATE PROFILE Page

1.1 Corporate Profile and Overview of the entity 6

1.2 Strategic Objectives 6

1.3 Salient Features 7

1.4 High-level organisational structure 7

1.5 Chairperson’s Foreword 9

1.6 Managing Director’s Report 9

1.7 Chief Financial Officer’s Report 11

CHAPTER 2: GOVERNANCE

2.1 Board Of Directors 16

2.2 Board Committees 17

2.3 Directors and Prescribed Officers Remuneration 19

2.4 Company Secretarial Function 20

2.5 Risk Management and Internal Control 20

2.6 Internal Audit Function 21

2.7 Corporate Ethics and Organisational Integrity 24

2.8 Sustainability Report 24

2.9 Anticorruption and Fraud 28

2.10 IT Governance 28

2.11 Compliance with Laws & Regulations 29

CHAPTER 3: SERVICE DELIVERY PERFORMANCE

3.1 Highlights and Achievements 32

3.2 Service Delivery Challenges 39

3.3 “Game Changer” Programmes 40

3.4 Performance against Service Standards 42

3.5 Capital Projects & Expenditure 44

3.6 Performance against Institutional SDBIP 45

3.7 Supply Chain Management and Black Economic Empowerment 48

3.8 Statement on amounts owed by and to Government Departments and 49 Public Entities

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CHAPTER 4: HUMAN RESOURCES AND ORGANISATIONAL MANAGEMENT

4.1 Human Resources Management 50

4.2 Employee Remuneration (Total Costs including Executives) 55

4.3 Key Vacancies 55

4.4 Employment Equity 55

4.5 Skills Development and Training 56

4.6 Performance Management & Succession Planning 59

4.7 Disciplinary Matters and Outcomes 60

4.8 Leave & Productivity Management 60

4.9 Employee Wellness / HIV/AIDS on the Workplace 61

4.10 Employee Benefits 62

4.11 Occupational Safety, Health and Environment (SHE) 63

CHAPTER 5: FINANCIAL PERFORMANCE

5.1 Statements of Financial Positions and high level notes 68

5.2 Statement of Financial Performance and high level notes 68

5.3 Cash Flow Statement 68

5.4 Ratio Analysis 68

5.5 Report in irregular, fruitless and wasteful expenditure and due process 68

5.6 Pending Litigation and possible Liabilities 69

5.7 Insurance Claims against / to MOE / Department 71

CHAPTER 6: INTERNAL & EXTERNAL FINDINGS

6.1 Results of Internal Audits 73

6.2 Progress on the resolution of internal audit findings 73

6.3 Progress on the resolution of external audit findings 75

CHAPTER 8: GENERAL

Annexures 76

Acronyms 77

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Approval

Goodwill Mbatha Signature Date Chief Finance Officer

Mpho Kau Signature Date A/ Managing Director

Confirmation of Receipt

Sipho Mhlambi Signature Date Cluster Champion Group Governance

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CHAPTER ONE CORPORATE PROFILE & LEADERSHIP

1.1 Company Profile and overview of the entity

The Johannesburg Roads Agency (SOC) Ltd commenced its business on the 01 January 2001. The City of Johannesburg (COJ / the City) is the sole shareholder of the Company. In terms of the founding documents of the Company, and the Service Delivery Agreement entered into between the City and the JRA, the mandate of the JRA is to design, construct and maintain roads and roads related infrastructure. The City adopted a new governance model in 2006 placing the JRA within the transport sector which includes the Transportation Department and MetroBus, another COJ entity. Administratively, the sector is responsible and accountable to the City Manager whilst politically it is accountable to the Member of the Mayoral Committee (MMC) responsible for Transportation, who is currently Councillor Christine Walters. The Company’s Head Office is situated in the Central Business District (CBD) of Johannesburg.

1.2 Strategic Objectives

Our Vision: The JRA’s vision is to be the best city roads authority that enables economic growth and sustainability.

Our Mission: The JRA’s mission is that we commit to provide quality roads that are accessible, safe and liveable for our communities”

Our Core Values: Respect Caring for the customer, prioritising communities, ensuring equity Accountability The man in the mirror, responsible actions Ubuntu Compassion for communities and road users, empathy, humility Cooperation Working together, integration, collaboration and pooling resources Honesty Ethics, transparency, doing the right thing

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1.3 Salient Features

Who is the JRA and what do we do? JRA AT A GLANCE / KEY ACHIEVEMENTS: • Municipal Entity solely owned by the City of Johannesburg • Tasked with the design, construction and maintenance of roads and roads related infrastructure • Established 2001 •

How do we do it? Pillars and enablers

Governance

Board: 1 X Independent Chairman 7 X Independent directors 2 X Executive Directors (MD & CFO)

 Audit and Finance Committee  Risk and IT Committee  Service Delivery Committee  Remuneration, HR, Social and Ethics Committee

1.4 The JRA’s High-Level Organisational Structure

The business model and structuring of the JRA sees the company managed by Heads of Department (HoD’s) who report directly to the Managing Director, who is also the Accounting Officer. There are six HoD positions, plus the Chief Financial Officer, as set out in the organogram below.

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The operational or service delivery element of the business is organised into seven regions as per the map below. The regions in turn are structured around depots, with traffic signals and RSD being stand-alone depots. Strategic assets, including the motorways depot, asphalt plant and the laboratory, are also managed under Regional Operations.

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1.5 Foreword by the Chairman of the Board (To be provided in the JRA Annual Report)

1.6 Managing Director Report

For the 1st quarter of 2015/16, the JRA’s focus was to kick start the implementation programme and projects for the new financial year. Whilst service delivery remained at the core of the company activities, a lot of effort was spent in implementing the CAPEX programmes for the financial year. The City’s recommitment to investment in the road infrastructure within the City of Johannesburg has been evident over the past 2 years with a drastic increase in the CAPEX budget allocation since the 2014/15 financial year. During the quarter, implementation of the capital programme began in earnest and multi-year projects awarded in the previous financial year were progressing well and are on target. Jozi@Work has been implemented through existing initiatives that commenced in the previous financial year. A total of 36 SMME’s were appointed and 144 jobs created and a total amount of R 18,718 million has been committed during this quarter. During the quarter, the draft Annual Financial Statements (AFS) and Annual Performance Report for 2014/15 period were completed, presented and considered by the JRA Executive Management Team, the Audit and Finance Sub Committee and approved by the Board. The AFS and Annual Performance Report were submitted to the Auditor General and Group Governance as per the requirements. The JRA has 8 core areas over which work stream programs have been divided in terms of the 2015/16 scorecard. These include:  Customer Charter;  Roads Management;  Bridges Management;  Stormwater Management;  Mobility Management;  Finance Management;  Internal processes;  Governance.

The JRA Company Scorecard 2015-16 was approved by the Board during the quarter. The performance of the JRA at Board and City level will be monitored and reported on as derived in the scorecard. Performance progress against objectives in relation to service delivery activities for the 1st quarter is contained in this report. The 2014/15 Audit commenced in the latter part of last financial year and JRA management continues to provide required information for AGSA in implementing the audit plan During the first quarter thirteen (13) positions were filled. All of these posts were new candidates to the JRA. During the quarter, key posts were filled, these include inter alia:

- Depot Manager: Region D - Senior Technician: ITS - Business Analyst Information Technology Nineteen (19) employees exited from the services of the JRA during the 1st Quarter as at September 2015.

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For the 1st quarter the operating expenditure was R 209, 944 million, the 'cash on hand' position being R 459, 112 million. The income for the quarter was R 245, 595 million, representing a profit of R 35, 651 million for the quarter. The accumulated surplus at end of first quarter was R 202, 452 million as compared to an accumulated surplus of R 166, 802 million at the end of June 2015.

In terms of the Supply Chain Procurement Plan, the JRA is on target as at September 2015. Of the total CAPEX budget of R 1 415 241 000.00, awards to a value of R 976 867 483.36 have been made. This represents 70% of the CAPEX allocation being committed as at September 2015. During the quarter a total of R 168,620 million was spent on CAPEX projects against a quarterly target of R 212,286 million. This represents a quarterly performance of 79.5% in comparison with last year’s 1st quarter performance of 47.89%. The improved performance is a result of the CAPEX budgets being approved over a 3 year period this allowing for multiyear contract appointments.

Mpho Kau Acting Managing Director

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1.7 Chief Financial Officers Report

Financial Performance

1.7.1 Financial performance 1st quarter:-

 At end of the 1st quarter, the JRA had a 'cash on hand' position of R 459, 112 million;

 For the 1st quarter the operating expenditure was R 209, 944 million against an quarterly target of R 216,934 million, this reflecting a 1 % underspend on OPEX Budget  The income for the quarter was R 245, 595 million, representing a profit of R 35, 651 million for the quarter  The Financial position of the JRA in the first quarter is summarised as follows:-  The additional income of R 9, 797 million generated is as follows:  Interest earned on the positive cash on hand for the quarter was R 6, 468 million, and no budget was set as the amount is not predictable.  Insurance claims are R 3, 957 million over budget.  The accumulated surplus at end of first quarter was R 202,452 million as compared to an accumulated surplus of R 166, 802 million at the end of June 2015.  For the quarter Audit Fees, depreciation, Directors Emoluments, Corporate Promotions, Leased Services, Municipal Service Charges, Security, Telephone and Fax and Data Services are over budget by R11, 030 million, but this compensated for savings on other line items.  Leased Contract Services (Vehicles) is over budget by R 7, 43 million and it is envisaged that the expenditure will exceed the budget, but there is sufficient savings to compensate for the anticipated over expenditure of R 13 million, as vehicles being purchased by JRA will replace leases vehicles Supporting notes to the financial position:-  Provisions have been made for, leave provision, 13th cheque and performance bonus.  The material stock amounts are now captured on JDE.  The management fee is 2, 5% of the EFF and USDG Grant funded capital projects actual spend.

 The current ratio at the end of the first quarter is 1: 1, 31 against a target of 1:1. This means that the JRA is able to pay current liabilities through current assets as the company has more current assets than current liabilities.

1.7.2 Finance Interventions The following interventions continue to be implemented in order to stabilize the JRA financial environment: • Implementation of processes whereby payments are made to service providers twice a month, except for emergencies, salaries and statutory payments such as VAT, PAYE and salary third party payments. This has a resultant effect as can be seen in the reduction of bank charges and interest payable. • Implementation of EFT payments instead of manual payments; • Pre-approved overtime by the relevant Head of Department;

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• Historically, the JRA has been invoicing the CoJ for the monthly operating subsidy allocation on 26th/27th of the month for the following month in order that the monthly allocation can be received from COJ in the first week of the ensuing month. The JRA is currently proposing to the CoJ that the allocation be received in July each year for the whole year. The JRA recognises that its financial position has improved, by now having a cash on hand position. In order to improve its financial position, the JRA continues to implement various plans to bring stability to its financial position. These plans include short terms interventions (quick wins), medium term and long term plans and include the following: i) Stabilization of funding a. Implementing tight budget monitoring controls; b. Continually increasing collection levels for accounts receivable and prohibiting overspending, where possible; c. Realign the budget to operations of the company and closer monitoring of actual expenditure; d. Refurbish the Asphalt plant to increase production capacity and generate revenue from external customers; e. Explore, within legislative compliance, other external revenue generating mechanisms.

ii) Ensuring that the capital budget is spent in the year by having the projects tender process accelerated and to begin the projects earlier. iii) Reviewing the performance of the finance department in order to improve financial management and the overall effectiveness and efficiency. iv) Reviewing the Supply Chain Management unit and proposals will be made on amending the structure and documenting the processes. v) Implemented strict quality assurance reviews in Supply Chain Management unit to control and centralise procurement processes according to the approved budget. vi) Improving the inventory management at the Asphalt Plant to allow monitoring of activities in all stages of the value chain and record transactions in time for budget monitoring.

1.7.3 BBBEE Expenditure

Total payments made in the 1st quarter amount to R430,702,578.60 of which R 348,729,196.77 was spent on BBBEE suppliers. (81 % against a target of 75%).

1.7.4 Supply Chain Management:

The supply chain progress (per capital project) is summarised as attached Annexure B

Supply Chain Management (SCM) interventions in order to improve performance:- The Supply Chain Management value chain. Progress against these is noted below. Challenges# Identified Progress on initiatives Target Date Lack of utilization of panels in relation to the award of bids The establishment of Panels will assist the business in the achievement of shorter service Ongoing delivery lead-times and black economic

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Challenges# Identified Progress on initiatives Target Date empowerment objectives Non-responsive tenders . Specifications too stringent for prospective . Specifications for tenders that were not bidders responsive have been revised – Gravel roads Ongoing . Ambiguity in the specifications issued to . Ambiguity in the specification documents has prospective bidders been removed and the specification

documents were updated SCM Policy and Ethics . SCM Policy is not aligned to the Procurement . The current policy is under review and it is Jan 16J Strategy currently being work shopped in the various company committee . The SCM Unit, Regional Management and

. Code of conduct for SCM Practitioners is in place Committee Members signed a pledge on SCM practices. Completed

Internal controls . Lack of compliance guidance and checklists . Continuous communication on procurement . Lack of procedures for emergencies (deviations) processes Ongoing . 3 quotes) . Introduced the use of checklists in the procurement process

. Defined procedures for handling emergencies (deviations) . Developed Standard Operating procedures for all finance processes

1.7.5 Progress on supply chain processes

Contracts awarded

Contract information can be found on the City of Johannesburg’s website including the JRA website.

A summary of all contracts awarded is provide as Annexure L to this report

Contracts awarded (above R 10 million)

During the 1stQuarter of 2015/16, Contracts Awarded (Above R 10 million )

SERVICE CONTRACT CONTRACT CONTRACT START BU PROVIDER END DATE AMOUNT (VAT NUMBER DESCRIPTION DATE (S) INCLUSIVE) July 2015 Nil August 2015 Nil Sept 2015 043/2015 The Construction of Repair ID White Hazy 22/09/2015 Project R 71 967 031.13 Works on the M1 Double Building Based Decker Bridge to Construction (Pty) Ltd

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SERVICE CONTRACT CONTRACT CONTRACT START BU PROVIDER END DATE AMOUNT (VAT NUMBER DESCRIPTION DATE (S) INCLUSIVE) 052/2015 Repair and Rehabilitation ID Allasso 22/09/2015 Project R 36 843 155.87 of Bridges City Wide Construction Based CC 037/2015 Construction: ID Actophambili 20/08/2015 19/08/2018 R 19 909 103.04 Reconstruction and Roads (Pty) Rehabilitation of roads in Ltd region D for three financial year Annexure B SCM progress 1.7.6 Contract Management

Contract performance assessments have been conducted for most o projects in consultation with the project managers and business representatives. The JRA has embarked on departmental meetings and have held a meeting firstly with the Infrastructure Department as one of the departments with critical contracts. Contracts have been categorised into “Critical” – mainly Capex contracts; “High”- Opex Capex contracts and “Low”- mainly supply and delivery contracts. The performance monitoring of these categories will be done monthly (Critical), Quarterly (Opex Capex) and as and when (Low) ones. Performance scoring of the service providers is conducted on a monthly basis and feedback is still at a very slow pace. The backlog in respect of drafting and signing of contracts has been eradicated. As at the end of the quarter, no contracts are being unduly delayed due to backlogs Queries received during the quarter for a contract management perspective include inter alia:  Queries regarding pricing, i.e., contract not clearly stipulating how the exchange rate will apply as the rate and date to be used were not specified.  Poor performance, late deliveries and poor quality of products on supply of goods contracts ;  9 contracts, majority being construction contracts were escalated to Contracts Management for poor performance.  4 construction contracts are currently on penalties.  Contract Management of Engineering Services contracts to be improved for proper assessment of performance.

Expiry of contracts During the quarter, a total of 2 contracts for the supply of goods expired in accordance with the contract period. There were no extensions of contracts granted in the 1st Quarter.

1.7.7 Contract Expenditure Currently, there are two hundred and forty two (242) contracts recorded in the JRA Contracts Register. Spending on all contracts on the register is still within the allocated value of the contract, no overspending has been identified. Although spending on some construction contracts is still fairly low the average spending on all contracts against the appointed values is approximately 16% against the CAPEX budget.

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1.7.8 Capital Projects

Period Capital Expenditure progress % Progress against Annual progress respective quarterly target Quarter 1 During the quarter a total of R This represents 11,92 % 11,92% of the annual 168,620 million was spent on CAPEX against a quarterly target of budget projects against a quarterly target of 15% R 212,286 million. (79.5%)

In terms of the Supply Chain Procurement Plan, the JRA is on target as at September 2015. Of the total CAPEX budget of R 1 415 241 000.00, awards to a value of R 976 867 483.36 have been made. This represents 70% of the CAPEX allocation being committed as at September 2015 The detailed JRA CAPEX Expenditure Report Summary (as at September 2015) is attached as Annexure C to this report.

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CHAPTER TWO GOVERNANCE

2.1 Board of Directors The Board is a unitary one having both executive and non-executive directors. The Board has overall responsibility for governance and operates in terms of a Board Charter which clearly defines its primary functions including the determination and direction of strategy, review of performance against the business plan, determining and monitoring compliance with policies and procedures and the management of risk. The Board retains effective control of the company and the formal delegation of authority is approved. The Managing Director is the accounting officer in terms of the MFMA. All directors are appointed by the Shareholder annually and the selection process is driven solely by the Shareholder in accordance with the City’s Governance Framework. The process to recruit a new Managing Director is progressing well through the assistance of a head hunter. The provisions of the regulations for the appointment of senior managers in the public sector are being strictly adhered to.

All the directors are non-executive, save for the Managing Director and the Chief Financial Officer, with the role of the Chairman and the Chief Executive Officer being separate. The executive directors have five year fixed term contracts with the company. It is the opinion of the Board that all the non- executive directors meet the definition of independence, in terms of the Companies Act, municipal legislation and King III. The Board of directors and independent audit committee members were reappointed after the Annual General Meeting which was held on the 3rd February 2015 and remain unchanged since the last report. The governance structure allows that both Board and Committee members have unrestricted access to management as well as all records and information of the Company. The Board has approved a formal process to enable members of both the Board and its Committees to access, at company cost, external advice. The last internal assessment highlighted the need to provide more opportunities for further development for members. In this regard membership of the Institute of Directors has been offered to all members and targeted training is scheduled for the second quarter 2015/16. In accordance with the legislative requirements the members are all required to become signatories to the company’s Code of Ethical Conduct and to make a full disclosure in the form of an annual declaration of interests which is updated as and when any changes in information dictate. Non - executive directors receive no benefit other than director’s fees. Where a conflict does arise directors are required to excuse themselves from the meeting at which such matters are addressed. In terms of the MFMA and Supply Chain Regulation 44 Board and Committee members will potentially be in breach of the legislation should they undertake work for other municipalities. This matter was previously addressed by way of an exemption granted by the previous Minister of Finance, which exemption has expired. This matter has been addressed with the City’s Group Governance department which has engaged with the Treasury Department. This matter is pertinent to a number of the company’s Board and Committee members who also offer their services in a personal capacity to other municipalities, excluding Johannesburg. The Board Charter has set out the requisite skills set and responsibilities of the Board and Committees, as a collective. The Board is satisfied that it has the necessary skills and expertise to effectively discharge its mandate.

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Directors and Officers Liability insurance cover is in place, through the City, in respect of potential liability attaching to the execution of duties as directors or officers of the company. All cover is in accordance with that available in terms of current legislation. The detailed information relating to the attendance at meetings of each Board and Committee member is as follows:

2.2 Board Committees The purpose of the Board Committees is to assist the Board with the discharge of certain responsibilities. All the Committees have defined mandates and operate under approved Terms of Reference, which have been reviewed and updated during the current year. The chairpersons of all the Committees are Board members and report to the Board quarterly. Members have unlimited access to all information, and staff members, as they deem necessary to enable them to fully discharge their duties. All the Committees have complied with, and discharged, their duties in accordance with the approved Terms of Reference and legislation. Each Committees composition is as follows:

Body Composition Mandate Other

The Committee is comprised of three board The Committee has complied with Section As from 2014/15, the and three independent Audit Committee 94 (7) of the Companies Act and Section Committee commenced with members. 166 of the MFMA. The Committee has a regular meetings with both The inclusion of three non-board members specific mandate which is set out in detail in management and the auditors is not in line with the Companies Act, the Terms of Reference (available on the in closed sessions. This however, the MFMA takes precedence and JRA website) and which is summarised as provides an opportunity for the these appointments are in accordance with follows, with references to the MFMA: respective groups/ persons to the MFMA and its directives. All members  Responsibilities relating to Internal make any representations they meet the qualification requirements of King Control [s 166 (2) (a) (i)] felt are necessary to the III being, academic qualifications, or  Responsibilities relating to Internal Audit Committee. Both the external Audit and Finance Committee experience, in economics, law, corporate Services [s166 (2) (a) (i)] and internal auditors do have governance, finance, accounting,  Responsibilities relating to Accounting free access to the chairman of commerce, industry, public affairs or human and Financial Reporting [s 166(2) (a) (iii) the Committee and to all resource management. & (iv)] information. Following the Annual General Meeting at  Responsibilities relating to Performance which the Shareholder appoints the Audit Management & Performance Evaluation Committee members, all members were [s 166 (2) (a) (v)] and [s 166 (2) (a) (viii) reappointed. Mr Mashele remains as the respectively] chairman of the Committee.  Responsibilities relating to Corporate Governance [s166 (2) (a) (vi)] 

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Body Composition Mandate Other

 Responsibilities relating to Corporate Governance  Responsibilities relating to the External Audit Function performed by the Auditor-General [s 166 (2) (c)]  Responsibilities relating to Ethics and Forensic Investigations [s 166 (2) (a) (ix) & s166 (2) (d)]  Responsibilities relating to Reporting [s 166 (2) (a), (b), (c), s121 (3) (j) and s121 (4) (g)] The Committee is also mandated to:  Make submissions to the board on any matter concerning the company‟s accounting policies, financial control, records and reporting;  Performed such other oversight functions as determined by the Board.

The Committee is comprised of three non- The Committee‟s mandate encompasses executive Board members with the the oversight of Risk as well as Information Managing Director and the Chief Financial Technology. Officer also serving on this Committee. It must be noted that risk oversight is the Following the Annual General Meeting Mr responsibility of the Audit Committee in Maimane resigned from both the Board and terms of the MFMA and thus the Committee the Committee. Mr Torres remained as reports through to both the Board and the chairman of the Committee together with Mr Audit Committee in accordance with its Risk and IT Committee Mashele and Drs Ramasia and Maina, all of terms of reference and includes the whom are independent non-executive submission of the minutes of the directors. Committee to the Board. The chairmen of The Head of Department (Performance, the Audit and Finance and Risk and IT Governance &, IT), Manager: Risk and the Committees serve on both Committees, Manager: IT are invitees to the meetings. and on the Board.

The Committee is comprised of four non- This Committee oversees the main function Following the deterioration in executive Board members with the of the JRA and is of critical importance in service delivery the Committee Managing Director also serving on this overseeing service delivery and the resolved in the 4th Quarter to Committee. performance against the Customer Charter increase the number of The respective operational Heads of Standards. meetings it held to ensure that it Department are invitees to the meetings. The Committee is thus mandated to meets every second calendar Following the Annual General Meeting Mr exercise oversight in respect of Regional month. This will enable the Shubane resigned from both the Board and Operations (roads and stormwater Committee to exercise closer the Committee. Mr Ngomane remained as maintenance), Mobility and Freight (traffic oversight and to monitor the

Service Service CommitteeDelivery chairman of the Committee together with Ms signals, road markings and freight implementation of corrective Msezane, Ms Nxumalo and Dr Maina, all of management), Infrastructure Development actions to address service whom are independent non-executive (Capex projects) and Planning. delivery levels. directors.

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Body Composition Mandate Other

The Committee consists of four independent This Committee has a dual function in so non-executive directors and the Managing far as, in addition to overseeing Director is also a Committee member but remuneration and human resource issues, only has a vote in respect of the social and it fulfils the legislated social and ethics ethics mandate of the Committee. He mandate. excuses himself from any decisions In terms of the Companies Act (Social and regarding remuneration and thus the Ethics Committee) the Committee oversees Committee composition meets the practice sustainability and a detailed Social and guidelines of King III. Ethical Committee Report is prepared and

Social & Ethics Committee The Head of Department: Corporate submitted to the Committee quarterly. Services is a standing invitee to the meeting. Following the Annual General Meeting, Ms Human Resources, Remuneration and Mashamaite was confirmed as chairman of the Committee together with Ms Nxumalo, Ms Manche and Dr Ramasia who are all independent non-executive Board members. Mr Maimane resigned from the Committee and Mr Ngomane was not reappointed.

2.3 Directors and Prescribed Officers Remuneration

The table below reflects the fees paid to the Non-Executive Directors during the Q1 2015/16 and includes the retainer fees for the 2014/15 period

Fees Paid Non-executive Director (R)

Maboa Mashukudu James 34 224,00 Maina James William 26 244,00 Manche Jacqueline Boitumelo 45 632,00 Mashamaite Marlene Lethabo 74 152,00 Mashele Harry 51 336,00 Msezane Nompumelelo 49 060,00 Ngomane Erick Sello 47 914,00 Nxumalo Lindani 49 060,00 Nyakale Suzan Mary Ann Badanil 11 408,00 Ramasia Marumo Abel 11 408,00 Shubane Khehla*** 41 906,00 Theunissen Robin Neill 34 224,00 Torres Alberto 51 336,00 Grand Total 527 904,00 (***Payment for 2014/15 retainer) Executive Remuneration Remuneration received by the Managing Director and Head of Business Units for the quarter is set out as follows:-

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Gross Salary Quarter Gross Salary Months Total Paid Position Worked (R) (R) (R) MD 0 0 0 0

CFO 120311.43 360934.28 3 360934.28

HOD: Corporate Services 103125.93 309377.79 3 309377.79 HOD: Mobility & Freight 104616.92 313850.76 3 313850.76

HOD: Planning 101675.27 305025.81 3 305025.81

HOD: Regional Operations 104681.34 314044.02 3 314044.02

HOD : Infrastructure Development 108023.48 324070.43 3 324070.43

HOD: Performance Governance IT 110102.40 330307.20 3 330307.20

Directors and Officers Liability insurance cover is in place, through the City, in respect of potential liability attaching to the execution of duties as directors or officers of the company. All cover is in accordance with that available in terms of current legislation.

2.4 Company Secretarial Function Ms Karen Mills is the appointed company secretary and she meets with the requirements of the legislation and King III. Members have unlimited access to the company secretary who is responsible for the maintaining of the information systems and processes that enable the Board to fulfil its role. The Company Secretary is also responsible to the Board for ensuring that Board procedures are complied with and advising the Board on governance matters. All Directors have access to the Company Secretary for advice and services. Independent advisory services are retained by the Company Secretary at the request of the Board and in accordance with the approved processes. Ms Mills holds B.Proc and LLB degrees and the Board has satisfied itself that she is qualified to perform her duties in accordance with the applicable legislation and is a fit and proper person for the post.

2.5 Risk Management and Internal Controls 2.5.1 Introduction A comprehensive risk management process, supported by the JRA EMT Risk Management Committee (EMT RMC), Risk and IT Committee and the Board, has been implemented by Management. This is aligned with the JRA and City’s Risk Framework & Policy. The JRA Risk Management unit attends, and participates in, the Group Risk process. The Risk Management Unit has developed an annual Risk Management Plan to guide the risk management activities; this includes an enterprise-wide risk awareness campaign and risk maturity assessment. Management monitors risks on a continuous basis, assisted by the departmental risk champions, and in line with the defined risk appetite and tolerance levels as determined by the Board. Quarterly risk reports are done by respective departments and are submitted to the various oversight bodies including JRA Executive Management Committee (EMT) and Risk management Committee (RMC) when meeting monthly as well as every quarter..

2.5.2 Risk Management Process

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Risk identification, assessment and monitoring is an on-going process based on the activities of the JRA, and based on recommendations from the assurance providers. Internal control mechanisms and mitigation actions are developed and implementation and effectiveness thereof monitored and measured. This financial year also sees JRA embarking on the implementation of combined assurance to improve the overall risk profile of the JRA. The JRA considers a variety of risks, including but not limited to strategic, operational, key projects, IT and fraud risks. As per the risk management policy, risk management framework, and risk appetite and tolerance framework JRA management conduct an annual risk review in collaboration with the City, the Board, the Risk and IT Committee. This process is supported by an on-going risk management process at departmental level with all staff encouraged to take ownership of risk.

2.5.3 Risks The JRA summary of risks is attached as ANNEXURE A to this report.

2.6 Internal Audit Function

Internal Audit provides assurance of governing internal controls and risk management to the organisation and the Audit and Finance Committee of the Board. The units’ primary objective is to provide an assurance function by identifying and evaluating significant exposures to risk, and contributing to the improvement of risk management processes, governance and internal control systems. This is achieved through an independent and objective evaluation of the company’s system of internal controls, as well as identification and reporting of the significant business risks and exposures which are brought to the attention of management and the Audit and Finance Committee. This is achieved through the presentation of comprehensive internal audit reports.

In order to meet its responsibility with respect to providing reliable financial information, the entity maintains financial and operational systems of internal controls. These controls are designed to provide reasonable assurance that transactions are concluded in accordance with management authority, that the assets are adequately protected against material loss or unauthorised acquisition, use or disposal and those transactions are properly authorised and recorded. The system includes a documented organisational structure, levels of responsibility, and established policies and procedures, including a Code of Ethics, as well as a system of careful selection, training and development of people. These are all communicated to the parent municipality.

The entity also includes the Internal audit reviews of the operation of the internal control systems for adequacy and effectiveness in mitigating risks and reports its findings, and recommendations, to management and the board of directors. Corrective actions are taken to address control deficiencies as well as other opportunities for improving the systems. The board, operating through its audit committee, provides oversight of the financial reporting process and internal control systems. There are inherent limitations in the effectiveness of any system of internal control, including the possibility of human error and the circumvention or overriding of controls. As a result only reasonable assurance as to the effectiveness of the internal control system over financial statement preparation and safeguarding of assets can be provided. A documented and tested business continuity plan is being developed to ensure the continuity of business-critical activities. Some aspects such as IT Service Continuity are already in place and have been tested successfully.

As at the end of the 1st quarter, the Internal Audit business unit completed including observation of reasonable assurance that the JRA objectives will be achieved.

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Name Audit Area Date Opinion Expressed Rating Completed Supply Chain Management July 2015 Adequate with a need for Yellow improvement on the effectiveness

Leave Management Audit Aug 2015 Adequate but ineffective Yellow

IT General controls audit Sept 2015 Adequate but ineffective Yellow

Business Planning and Development Sept 2015 Adequate and effective with a need Yellow for improvement Mobility and Freight Infrastructure Sept 2015 Adequate but ineffective Yellow Maintenance Including infrastructure protection follow up audit Key Control Assessment(Q3 and Q4) Aug 2015 Adequate but ineffective Yellow

Legal Services Management follow up Sept 2015 Inadequate and Ineffective Red Audit Performance Information Audit (Q3 and Aug 2015 Adequate and effective Green Q4). Recruitment Interview Observations Jul- Sept 2015 Adequate and effective Green

Bids Observations Continuous Audit Jul- Sept 2015 Adequate and effective Green

LEGEND

Red Major Progress Required

Yellow Some Improvement Required

Green Good Opinion with no Major issues raised

2.6.1 Fraud Prevention Plan

2015/16

Four (4) new allegations were received during the 1st quarter and are in progress of being followed up.

Progress to date:-

Progress No of matters raised Comment

Total number of matters 4 reported in Q1 Matter referred to CoJ 2 Two new investigations incorporated in the allegation Investigation Unit referred to GRAS for investigation and currently in progress. Matters current with Internal 2  0ne (1) of the matters is under preliminary review Audit by the Ethics Committee.  The Preliminary review completed. The matter still to be referred to COJ for investigation.

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A summary of the alleged fraud cases reported during 2015/16 is attached as Annexure J to this report.

2014/15

During 2014/15, a total of fourteen (14) fraud allegations were reported with eight (8) resolved and six (6) remained unresolved as at 30 June 2015. Progress to date on the Six (6) unresolved allegations within quarter 1 is as follows:-

Progress No of Comment matters raised Total number of reported matters 6 Of the 6 reported cases, Five (5) of which were received in outstanding as at 1st July 2015 June 2015. Resolved matters 0

Matters outsourced for specialized 1 One (1) matter, procurement process is in progress for investigation appointment of the service provider to conduct investigations. Matters referred to COJ 1 One (1) matter referred to COJ investigation Unit for investigation and service provider has been appointed with the investigation in progress from September 2015. Matter referred to SAPS 1 One (1) case that was referred to SAPS Anti-corruption unit remain outstanding, with continuous follow- ups being conducted and minimal feedback received. Matters with Internal Audit 3 Three (3) matters still under preliminary investigation by the Ethics Committee.

2013/14

Of the 9 (Nine) fraud allegations outstanding from the 2013/14 period:

 Three (3) matters were outsourced for investigation and were completed with reports issued to management for actions;  Three (3) were closed through Internal Audit preliminary investigation;  One (1) was closed due to insufficient information ;  Two (2) were incorporated with the 2014/15 allegations that was outsourced and has been completed and;

Fraud awareness presentations:

None

Challenges:  Delays in finalization of the SCM processes for outsourcing of forensic services.  Capacity constraints for Internal Audit due to lack of capacity dedicated to fraud issues.  Delays from the Group forensic Unit to initiate the investigation process due to procurement process.

Remedial actions  The Ethics Committee to assist with the preliminary review of allegations.  Management investigating the movement of the forensic functions to be an independent function.  Investigation of a dedicated interim resource to handle investigation cases.

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2.7 Corporate Ethics and Organizational Integrity

Refer Sustainability Report (2.8)

2.8 Sustainability Report

2.8.1 Background

The Board has considered the best format for a Sustainability Report. Given the mandate of the Social and Ethics Committee, together with its need to report to Shareholders, it is the view of the company that the issues of sustainability, stakeholder engagement and the report from the Social and Ethics Committee to Shareholders are best incorporated into one report from the Chairperson of the Social and Ethics Committee. The City of Johannesburg has clearly communicated its commitment to long term sustainability and the JRA fully endorses this position. Such long term sustainability is a major challenge facing not only the City and the JRA but the world at large. The need to foster development and deliver citywide services is paramount but cannot be undertaken without consideration for our environment. The JRA is committed to supporting the position of the City in this regard through senior management leadership, inclusion of sustainability as a consideration in our strategic approach and operations and the development of transparent and accurate reporting mechanisms to ensure we are able to monitor our progress. The concept of sustainability, and what it means for the JRA, remains something which the company is still grappling with. We have identified the need for the development and implementation of a number of processes and procedures which will support and measure our performance against sustainability objectives. We acknowledge that best practice dictates that we adopt the Global Reporting Initiative (GRI) list as the basis for our reporting template. The JRA is not yet able to report against these standards, however, in line with current MFMA reporting requirements we have reported against a number of the required indicators in terms of our performance reporting (see Chapter 3). We have completed the development of a GRI reporting format and implementation has commenced. 2.8.2 Oversight Structures The Social and Ethics Committee operates in terms of approved terms of reference and has discharged its mandate in terms of both the legislation and the said terms of reference. The oversight of sustainability, and stakeholder engagement, are two of the functions delegated to the Social and Ethics Committee by the Board. The Committee reports to the Board quarterly and is required to report to Shareholders annually, and to answer questions at the annual general meeting. A quarterly Stakeholder Engagement Report is submitted to, and considered by, the Board. Neither the JRA, nor its auditors in the form of the Auditor-General, are yet at a point where any of the items in the Sustainability Report can be externally assured. This is an aspect of sustainability reporting which will have to be developed within the public entity environment 2.8.3 Material Aspects of Sustainability

The primary areas of sustainability that the JRA has considered are:

Community Customer Employees  Enterprise Development (SMMEs)  Customer Charter Standards  Excellent health and safety  BB-BEE  Excellent employer  Environment (Green Economy)  Fraud and corruption

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2.8.3.1: Community The areas of Enterprise / SMME Development and the support of BBBEE (cross refer to 2.12 below) remain a primary focus of the JRA and are in line with the City’s Growth and Development Strategy 2040, which is summarised in Chapter One of the report. Projects are awarded through the Supply Chain Management tender processes but are geared towards supporting entities which meet the legislated BB-BEE requirements. The company is also very aware of the need, and benefits, of identifying, developing and supporting SMMEs. As far as is possible both SMMEs and cooperative organisations (Coops) are incorporated and it is the intention of the City to empower citizens and grow partnerships through community based service delivery models. Payment of service providers within the required 30 days of invoice as required in terms of the legislation pertaining to state entities continues to be strictly monitored and remains a priority for the company. Jozi@Work has been implemented through existing initiatives that commenced in the previous financial year. A total of 36 SMME’s were appointed and 144 jobs created and a total amount of R 18,718 million has been committed during this quarter. It has been reported previously that there are challenges in meeting the Customer Charter set standards. The appointment of these companies will assist in meeting the set turnaround times as stipulated in the charter thereby improving in service delivery. In parallel, the process of appointing a supplier for alternative has commenced. The contract was awarded in September 2015. The challenge pertains to the manhole covers and drain covers being vandalised / stolen / sold is persisting. In as much as steel is durable and strong it has proven to be a challenge to continue using products made of steel. To mitigate this challenge, JRA is sourcing alternative material through procurement processes that are environmentally friendly and has no resale value. The company has subscribed to the City of Johannesburg’s approach to the environment, specifically the “Green Economy” and in this regard has acquired equipment which will allow for the recycling of road surface material. The facilities department has also implemented a number of initiatives that will reduce the carbon footprint of the company through efficient energy utilization and recycling of paper. On a macro level the JRA is supporting the City’s integration of transportation policies to promote green mobility. This includes the development of the corridors of freedom and the prioritization of public transport, as well as bicycle and pedestrian transport, through the complete streets programme. Stormwater management interventions through the conversion of open drains, the expansion of the capacity of the current systems, the upgrading of old infrastructure and local master planning also support the green approach to City management and development. The JRA is not excluded from the scourge of fraud and corruption. The tender processes are in line with the requirements of National Treasury. The Supply Chain Management (SCM) department has been capacitated and the executive management team continues to exercise strict oversight thereof with the centralization of procurement. The contracting processes of the company are functional and the accounting officer has reserved certain authority to himself in this regard but in line with the MFMA. During the previous financial year, the Code of Ethical Conduct policy as well as the establishment of a Management Ethics Forum and the appointment of an ethics officer was finalised. The Disciplinary Code was reviewed during the 3rd quarter of 2014-15. All municipal employees, including those of Municipal Entities, are bound by the Code of Conduct as set out in Schedule 2 of the Municipal Systems Act No 44 of 2003, and since last year a concerted effort has been made to ensure that all employees formally declare any interests they have in entities doing business with the municipality and, where such conflict exists, they must obtain written consent thereto. Employees may not accept

25 | P a g e gifts or donations nor engage in work outside that for which they employed by the JRA. Training in this regard was undertaken last year and the Code is strictly applied. The JRA has taken the approach that it has zero tolerance for any form of fraud or corruption.

2.8.3.2 Customer The Customer Charter is the agreement between the JRA and City and regulates delivery of services to the citizens of Johannesburg. The JRA performance against this charter is set out in detail in Chapter 3 of this report and the reader is referred to that section of the report. The attainment of the customer charter standards remains an on-going challenge for the JRA. Interventions in respect of service delivery at a regional level are on-going. The JRA is embarking on an international benchmarking study to assist with the benchmarking of such service standards. The outcomes of this study will inform future negotiations and agreements in respect of service standards. Third party liability insurance is in place through the City of Johannesburg. A separate function exists within the legal department to deal with claims which are logged, investigated internally and then submitted to the insurers via the brokers. Typically claims relate to personal injury as a result of accidents predominantly suffered by pedestrians and damage to motor vehicles as a result of potholes and damage to JRA infrastructure.

2.8.3.3 Employees The JRA’s human capital management approach is to attract, develop, maintain and retain a professional, competent and diverse workforce committed to transforming the JRA into the best roads authority. In the area of Occupational Health & Safety, the business is committed to keeping the number of injuries to the minimum A Health and Safety committee has been established and is meeting on regular basis. JRA has entered into partnership with the CoJ Emergency Medical Services with the purpose of facilitating training requirements of JRA staff at a reasonable cost. Training modules presented are (a) First Aid, (b) Health & Safety and (c) Fire Fighting. Parties have signed a Memorandum of Agreement to this effect. Corporate service conducted the surveillance on emission at the Asphalt plant & the subsequent report was submitted to the Executive Management Team for their consideration. The report has demonstrated non-compliance on the emission levels; remedial action plan has been developed and is being implemented. The plan also addresses the risk of the operating license being revoked. Leave management remains a matter of serious concern as it is being managed manually. This exposes the business to the risk of misstatements and financial losses. The business is however in the process of automating leave management, time management linked to the payroll through SAP and Biometric system. This should significantly enhance control measures in the business and sufficiently mitigate the current risks in this area. As an interim control measure, leave books are being checked for compliance weekly & input of leave information onto the JDE system has been centralised to the Head Office. This should significantly help to enhance financial data that is being transmitted to Finance unit.

2.8.4 Stakeholder Engagement The Board approved the Stakeholder Management and Intergovernmental Framework last financial year. The dedicated position of Manager Stakeholder Engagement and Inter-governmental Relations continues to exist within the office of the managing director. Each region has a Regional Operations Manager (ROM) who is the interface between the community and the JRA as well as between the political heads at a community / regional level.

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The JRA operates within the framework of the Municipal Systems and Structures Acts and as such reports to the City of Johannesburg quarterly. The Chairman of the Board meets with the MMC (Municipal Councillor) on a quarterly basis to address any issues of a service delivery nature. The JRA regularly receives, and replies to, questions from the Section 79 Portfolio Committee. This is a Committee of the Municipal Council established in terms of the Municipal Structures Act. The Committee is accountable to the Council and has an oversight role. It is made up of councillors from various political parties. The Committee has no decision making powers and can only make recommendations to Council. It is the intention of the JRA to move to a point where it is able to report on a Regional, and Ward basis as regards service delivery and capital projects. Already, all departments in the JRA have been handed their accountability processes in terms of Stakeholder Management & IGR Framework, and monthly reports are developed for the purposes of tracking progress and managing risks. IGR engagements are in place and there are significantly improved relations with other spheres of government such as the Gauteng Transport and Roads as well as the National Department of Transport. Quarterly meetings on, inter alia, Roads Construction Bodies and the related matters, are being held.

2.8.5 Ethics The establishment of the Social and Ethics Committee was partly in response to the implementation of the Companies Act of 2008, which in turn legislates aspects of the Committee mandate. The terms of reference of the Social and Ethics Committee were reviewed during 2014-15.

The issue of ethical behaviour is a topical one amongst most state owned entities, with the JRA being no exception. The Social and Ethics Committee oversees the issue of ethics and the process to ensure that ethics are embedded in the corporate culture of the Company is in place through an approved Code of Ethical Conduct, Management Ethics Forum and the appointment of an ethics officer. The provisions of the Municipal Employees Code of Conduct are being strictly managed and enforced. The Code includes provisions relating to conflict of interests, handling of confidential information, entertainment, use of company services and property and the receiving of gifts. The JRA operates a gift register and all staff members are required to disclose gifts received. All Board and Committee meetings commence with a declarations of interests. Breaches of the Code of Ethics, as well as other matters of impropriety, may be reported through access to the Whistle Blowing hotline by all stakeholders. The JRA is committed to working against corruption in all its forms, including nepotism, extortion and bribery. An externally managed Whistle Blowers facility hotline is in place and all matters reported through the hotline are brought to the attention of the Audit and Finance Committees.

2.8.6 Statutory Obligations The Group has a formal disclosure in terms of the Promotion of Access to Information Act, 2000 in terms of which requests for information will be entertained by the company. Issues are also raised through the office of the Public Protector. All statutory information required to be published in terms of the legislation applicable to the Group, all requisite submissions and all requests for information, have been fully complied with, although the required information to be published on the company website still remains a work in progress. As part of the compliance process a detailed compliance report is reviewed by management monthly and is submitted to the various Committees and the Board quarterly. The Governance Report (Chapter Two) has been reviewed by the Social and Ethics Committee.

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Aspects of sustainability, including, but not limited to, staff, training and employment equity issues are addressed in detail in the Human Resources Report and are not replicated in this report, and should be read in conjunction herewith. The JRA welcomes any feedback on its sustainability practices and in this regard please contact our company secretary whose details are listed at the end of the integrated report.

2. 9 Anticorruption and Fraud

Please refer to Fraud Prevention Plan (Section 2.6.1)

All the allegations received were followed up and investigated through the Internal Audit department, progress reports on matters are presented monthly to the Executive Management Team, quarterly to the Audit and Finance Committee and any matters requiring the attention and oversight of the Board are highlighted through the Audit and Finance Committee report to the Board.

2. 10 ICT Governance The JRA does not have a Chief Information Officer and the IT department is managed by the IT Manager on a day-to-day basis. The IT Department reports the HOD: Performance, Governance & IT who reports formally to the Risk and IT Committee on a quarterly basis.

During the 2014/15 period the Board approved the IT Governance Framework which takes into account the legislative framework, including King III, as well as the International Organisation for Standardisation / International Electro-Technical Commission 38500 (ISO /IEC 38500) and the Control Objectives for Information and Related Technology (COBIT). This has assisted towards the objective of institutionalising ICT governance as an integral part of corporate governance within the company.

Interrelated references of IT Governance Framework

The implementation plan in respect of the approved framework is being developed. It should be noted that further changes to the framework by the Treasury department are anticipated which will specifically be directed at Municipalities and the company will need to respond in this regard as and when the changes are finalised.

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An “as is” maturity self-assessment of the organisation against COBIT had been undertaken indicating some improvements required. An external maturity assessment would be undertaken during 2015/16 with the company in the process of a five year turn around process, including the implementation of SAP. A further assessment will be undertaken after the implementation of SAP and then again at the end of 2017. The framework envisaged that the company would be COBIT compliant and implementation would ensure a structured system of reporting.

During the quarter, various IT matters served at the JRA’s Risk and IT Committee (RITC) these being considered for approval by the Board at its next meeting. These include:

 IT Governance Maturity report;  IT Security Policy Changes;  IA IT General Controls  ICT Report

An IT Governance maturity assessment was completed in July 2015 and served in the RITC in September 2015. From the findings a list of recommendations was put forward in a form of a 24 months roadmap. Currently the recommendations are being aligned to the NT guidelines and to provide budgetary requirements. Key to the findings is that IT needs to play a more strategic role in the organization, enabled by the appointment of a CIO and also a Governance Champion (project manager) to support the implementation of the roadmap.

2.11 Compliance with Laws & Regulations The company has appointed a compliance officer and has an approved Compliance Policy. It should be noted that as a wholly owned company of the City of Johannesburg the JRA is subject to a wide range of legislation peculiar to government entities, in addition to that applicable to companies. As such compliance remains a core focus for the company and the JRA strives to ensure that the company is able to meet compliance requirements in terms of major legislation as well as standards, codes and rules associated with our industry. A detailed monthly compliance report is considered by the executive management team and submitted quarterly to the Remuneration HR and Social & Ethics Committees, which in turn reports to the Board. As part of the Compliance Policy the JRA also measures its compliance with King III, and, for purposes of transparency, we report that there remain a number of areas of non-compliance, which include areas primarily relating to corporate citizenship, succession planning and external assurances on sustainability. Currently the compliance process is manual and includes the actions set out below: a. Identifying the laws and regulatory obligations that are applicable, including the non-binding rules and standards to which the company wishes to comply through a process of continued on-going monitoring of all new legislation and standards as published in the government gazette and by selected bodies; b. Ensuring that the board members understand the requirements and are updated on the changes. This is accomplished by the monthly updating of the Compliance Checklist which is submitted to the Board at all its formal meetings, at least quarterly; c. Implementing a comprehensive compliance process and regularly monitoring compliance to the process through the governance structures and inclusion on the board agenda which may be via reporting from the Audit and Finance Committee; d. Managing compliance risk through the risk management process which includes the necessary tools to detect, report and manage compliance risks;

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e. Embedding compliance in the operations and processes, ethical conduct and culture of the business/organisation; f. Appointing a compliance officer and establishing a compliance function to assist in the management of compliance; and g. Disclosing how effective compliance has been achieved through a standard compliance report which is updated monthly.

It is the intention of management to investigate compliance software options during the 2015/16 financial year however the implementation of same will be subject to available budget.

During Q1 the following areas have been identified for further action and follow up:

Relevant Act / Section Activity Status Occupational Health and Ensure execution, in particular, that a safe and Significant compliance envisaged by Safety Act No. 85 of hygienic working environment is maintained and March 2016 1993 that the Act is displayed in the workplace. Promotion of Equality Ensure that requirements are met and that JRA Action plans being developed to ensure and Prevention of Unfair Code is adhered to. significant compliance by March 2016 Discrimination Act No.52 of 2002 Financial Intelligence All service providers FICA‟ed Part of tender process – confirm that Centre Act, No 38 of FICA is complied with 2001 National Archives and Ensure there is a records management system In progress – completion March 2016 Records Services of and documents are stored in the manner, and South Africa Act for the required time frame, as per legislation National Road Traffic Transportation of dangerous goods as classified The Fleet and Plant is busy rolling out Act 93 of 1996 and in terms of SABS code of practice (SANS compliant trucks until 30 September chapter VIII of National 0228:2012); 2015. Road Traffic Regulations of 2000 Waste Act 59 of 2008 Waste Act 59 of 2008 – Regional Depots to Development of action plan store waste in compliance with the Waste Act. Air Quality Act 39 of Asphalt Plant compliance with Air Quality Act Development of business plan to address 2004, challenges and non-compliance

Environmental Asphalt Plant is non-compliant Development of business plan to address Regulations in relation to challenges and non-compliance Asphalt Production and Transportation; Road Maintenance and Road Construction

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Relevant Act / Section Activity Status S 111 SCM Policy and implementation thereof Approved and implemented

Management did not adequately monitor action plans to address internal control deficiencies identified in the prior year. As a result a number of non-compliance issues have recurred over expenditure management, supply chain management and human resources. Lack of adequate monitoring and review of compliance with the MFMA regulations especially relating to supply chain management.

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CHAPTER THREE SERVICE DELIVERY PERFORMANCE

3.1 Highlights and Achievements 3.1.1 Performance against Company Scorecard The JRA 2015-16 Business Plan takes into consideration the outputs of Mayoral Lekgotla and details the company’s priorities and objectives in delivering services in accordance with the City’s strategic and development priorities as set out in the Growth & Development Strategy (GDS2040), the Integrated Development Plan (IDP) and also the City’s 9 +1 priorities. In support of these strategies and key priorities, the JRA in taking its Strategy 2017 as well as the 3 year zero based budget process into consideration, developed its key priority programmes for 2015/16. The plan best reflects programmes and focus areas of the company. The 2015-16 Business Plan includes both the CAPEX and OPEX Key priority Programmes. These set out the JRA’s deliverables for 2015-16 in terms of the plans in the Service Delivery Budget Implementation Plan (SDBIP). The JRA’s budget allocation remains high in comparison with the 2013-14 budget allocation. Over the past 2 financial years the CAPEX budget increased significantly which has had an effect on the Company objectives and thus the Company Scorecard.

The key priority programmes as identified in the 2015 / 16 Business Plan and associated SDBIP contain a total of 146 related projects. This includes the Community Based Projects (CBP) activities (13 in all).

If all project / activities are included in the JRA 2015-16 Company Scorecard, then a total of 146 Kpi’s would be incorporated in the annual scorecard for monitoring and performance reporting purposes.

Given the challenge of developing a Company Scorecard for 2015-16 that is both practical and addresses the legislative requirements, it was agreed that:  The practice of combining Kpi’s into rational groups at a high level be dispensed with due to cumbersome reporting and lack of transparency;  Where possible, performance relating to key priority projects is incorporated into the company scorecard with the remainder being migrated to HOD level Kpi’s. The JRA has 8 core areas over which work stream programs have been divided in terms of the 2015- 16 scorecard. These include:  City Priority Programmes;  Roads Management;  Bridges Management;  Stormwater Management;  Mobility Management;  Internal processes;  Finance Management;  Governance.

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In order to limit the number of Kpi’s on the company scorecard, it is proposed that key Kpi’s be incorporated in the company scorecard with the remainder being migrated to a lower level. In order to prioritize Kpi’s, activities are divided into 3 levels, these being:

Level 1 City Priority programs, Key Performance Company Scorecard, Objectives, High CAPEX budget allocation, MD Scorecard „concrete‟ deliverables Level 2 Planning / preparation related activities, HOD Scorecard Low CAPEX budget allocation Level 3 Minor related activities, Day-to-day related Ops Manager Scorecard activities

Following the above principles, the JRA Company Scorecard 2015-16 has been structured as follows:

Program No of high level Kpi’s City Priority program:  Customer Charter (7);  Program 1:  Corridors of Freedom (3) 23  Community Based Programmes (13)

 Program 2 Roads Management program 20

 Program 3 Bridge Management program 6

 Program 4 Stormwater program 10

 Program 5 Mobility Management program 15

 Program 6 Internal processes 4

 Program 6 Finance Management 5

 Program 8 Governance program 3 Total 86

The JRA 2015-16 Company Scorecard was approved by the Board at its meeting held 30 September 2015.

Level of Performance; Key to indicators:

Target achieved (at least 75% rating)

Target partially achieved (at least 50% rating)

Target not achieved (< 50% rating)

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Company performance: Quarter 1

The AOPO performance attained by the JRA for the 1st quarter 2015-16 is 90.9 %.

Q1 Performance across respective programmes is summarised below:

Program Description Q1 Programme 1 City Priority Programme 83,9% Program 2 Roads Management program 94,8% Program 3 Bridge Management program 100% Program 4 Stormwater program 98.18% Program 5 Mobility Management program 92.12% Program 6 Internal Processes 82,77% Program 7 Finance Management 88.7 % Program 8 Governance program 100%

Summary No Q1 Q2 Q3 Q4 Annual Number of KPI’s 86 90.9 %

The performance attained against predetermined objectives as at the 1st quarter is detailed on attached Annexure D to this report

3.1.2 Regional Operations Department The Regional Operations Department have achieved the following (quarterly and year to date):- During the 1st quarter, the department continued to implement activities related to road infrastructure repairs and maintenance, bridge maintenance and storm water repairs and maintenance. These activities continue to support the implementation of the JRA’s activities as described in the Business Plan.

Activities completed during the quarter includes the following: As a result of investment in road rehabilitation through the resurfacing programme, the JRA anticipated a reduction in the number of potholes repaired during the quarter. During the quarter 21,422 potholes were repaired this reflecting a reduction of 16.1% in the number of potholes repaired against an anticipated 10% reduction.

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(i) During the 1st quarter, progress on road rehabilitation activities was as follows:-  Deep Patching: 8 016.66 m2 against target of 6,800m2 (> 100%);  Skin Patching: 3 435.69 m2 against target of 4,400m2 (78.1%);  Milling: 0 L/km against target of 2 L/km (0%)  Crack sealing: 8 570kg against target of 13,200 kg (64.9 %)

During the 1st Quarter a total of 15 398.80 tons of Asphalt was produced against a target of 35 000 tons  Internal supply : 15 303.03 tons  External Sales : 95 tons

During the quarter the asphalt plant experienced 240 hours of downtime as a result of the following:  24 hrs of plant calibration and setting of machines;  24 hrs of no asphalt demand from Regions and Finance (Logistics);  240 hrs of bitumen shortages due to Refineries Shutdown taking longer than originally planned and their problems with off-spec bitumen.

3.1.2 Planning Department

I. Strategic Planning

The first quarter has mainly been about finalisation of the plans, procurement of the required services and preparation for the 2016-2017 financial year.

From a strategic planning perspective, the planning meetings for the JSIP submissions were held with all the internal stakeholders. These meetings culminate in the finalisation and submission of a consolidated JSIP list which is the backbone of our CAPEX budget submission to the COJ. The first one on one meeting JSIP meeting with the City was held on the 18 September 2015. Two more such meetings are scheduled for later on in the year. The Company’s SDBIP was also finalised and approved by the SDC of the Board.

Overall, the Department is on track to deliver its mandate in the 2015-2016 financial year.

II. Development Control (Private and Public) Development Control continued with the final stages in the review of the Company’s design standards. Overall, the Department is on track to deliver its mandate in the 2015-2016 financial year.

Development Control (Private) (a) In this quarter, 96.8% of all town planning applications were completed within the 60 day period. (b) 93.8% of all rezoning applications were completed within the 28 day period. (c) 13 Site Development Plan and Building Plan submission meetings were convened with private and public developers and engineers during the quarter.

Development Control (Public) During the quarter, the Development Control unit continued with assessing various Township Planning applications, land use applications, scrutinising building and site development plans as well as addressing correspondence received. These are summarised as follows:-

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(a) In the first quarter, 100% of all town planning applications were completed within the 60 day period. (b) 100% of all rezoning applications were completed within the 28 day period. (c) 5 Site Development Plan and Building Plan submissions scrutinised. 206 meetings were convened with private developers and engineers during the quarter.

III. Roads and Storm-water Planning

The Roads and Storm-water unit completed the planning components and handed over four projects to the JRA’s Infrastructure Development department for implementation. A further six projects are still at various procurement stages.

a) Storm-water Master Planning For the 2015-16 financial year, focus is being placed on the completion of Storm Water Master Plans (SWMP) in the following areas: 1. Ivory Park Ext 2,5,6,7 2. Zandspruit 3. Carlsworld 4. Finetown / Ennerdale south 5. Weilers Farm/ Sweetwater’s 6. Midrand (Development Node). 7. 3rd Road (Development Node). 8. Chartswell Sub catchments (Development Node) 9. Carlsworld Sub catchment (Development Node)

New Bid Document served at BAC on the 18 September 2015 for the appointment of consultants.

b) Corridors of Freedom: The stormwater Master plan for all three corridors of freedom were completed during the 2014- 15 financial year. During Q1, the specification preparation for the appointment of Professional Services for the development of Preliminary Designs, Detailed Designs Report, Water Use Licence application and EIA application commenced.

IV. Road Asset Management Systems

After completing the planning aspects our Roads Asset Management Systems, the unit handed over various bridge rehabilitation projects to the JRA’s Infrastructure Development department for implementation. Furthermore, the Roads Assets Management System (RAMS) was completed and the JRA’s Resurfacing and Rehabilitation schedules were handed over to the Roads Resurfacing Depot (RSD) for implementation.

3.1.3 Mobility & Freight During the 1st quarter, the Mobility & Freight Department achieved the majority of the operational KPI’s relating to Traffic Signal maintenance and Traffic Engineering. Traffic Signal Maintenance recorded the following performance during the 1st quarter:

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 Of the reported 402 faulty traffic signals, 299 were repaired within 24 hrs. (74,15% against a target of 90%). The average resolution time to repair reported traffic signals was 27.07 hours. Traffic Engineering recorded the following performance during the 1st quarter:

 A total of 160 safety investigations were completed against a target of 75 (>100%). These investigations are carried out in response to community requests as well as internal hotspot analysis;  During the quarter, 100 Traffic Impact Studies were completed against a target of 70 (>100%);  59 signal phasing’s designs were revised during Q1 against a target of forty (40) (>100%);

 8 petitions were received during the 1ST quarter and all have been attended to.

3.1.4 Infrastructure Department The Capex Programme comprises of rehabilitation, reconstruction, new construction and upgrades of various road and storm water infrastructure projects. The implementation plans were concluded in last quarter of the previous financial year. The first quarter commenced and the focus was virtuously on ensuring that all programmes for 2015/16 have adequate tools and resources to ensure a smooth implementation. The inception meetings were convened for certain projects within the Capex programme.  Gravel roads Construction continued from the previous financial year in all eight areas (Braamfisherville, Diepsloot, Thulani / Doornkop, Ivory Park, Orange Farm, Lawley, Tshepisong and Protea South). The professional services tenders for three additional areas in the Gravel Roads programme were advertised and closed in the first quarter, the new areas are Mayibuye/ Commercia, Slovoville, Kaalfontein and Poortjie. The professional services tender for Thulani/ Doornkop and Tshepisong was evaluated in the first quarter.

 Bridges In respect of the bridges programme, the following progress can be reported for period under review:

 The overall construction on Naledi Bridge progressed well, and the anticipated completion date for the first phase of the project is the 30th of September 2015, the project. Eskom will commence with the relocation of 132KV cables prior to construction continuation of the second phase of the project.  In respect of the Bridge Inspections programme, the professional services tender is at evaluation stage.  Construction of motorway gantries proceeded in the first quarter, four gantries were dismantled and replaced.  Work proceeded with the construction of deviation routes and piling for the rehabilitation and upgrading of three bridges in Soweto (Nxumalo, Kinini and Zulu).  Construction tenders for pedestrian bridge projects in Kaalfontein, Klipspruit West, Slovo Park and Diepsloot West were advertised and evaluated in Q1.  Investigations for designs of Jabulani/ Molapo bridge and Conrad proceeded in the first quarter.  Professional services tenders for River Park and Ivory Park bridge were evaluated.

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 Stormwater Stormwater projects proceeded in Q1 with projects at various stages. Progress against these projects is reported as follows: - The bid specification for Protea Glen storm water construction was compiled. - The Urgent and Critical Storm Water programme consists of projects which are at various stages of completion, two PDR and two DDR's were achieved. One project at consultant procurement stage, six at contractor procurement stage, five projects at construction stage, four projects are at Design and Documentation phase, one project has been completed. - The Conversion of Open Channels programme is in progress, with two projects at construction stage (Bram Fishersville and Ivory Park). - Braamfontein Spruit and Klein Juskei Ferndale catchments are at evaluation stage for professional services tenders. The investigation for designs in Klein Juskei Willows, Bezuidenhout Valley Catchment Mogaseview and Robinson Canal are in progress

 Mobility (Roads) City Deep has 6 sub projects, SANRAL is implementing the projects on behalf of JRA. Construction tenders closed in the previous financial year for Rosherville Road and Bridge, Bonsmara and were evaluated in Q1. Complete Streets projects are being implemented in six areas (Braamfisherville. Diepsloot, Ivory Park, Alexandra, Orange Farm and Soweto). Complete streets construction tenders were advertised and closed in Diepsloot and Ivory Park, tenders were evaluated in the first quarter. Geometric Improvement projects consist of various intersection improvements throughout the City. The construction tender for Constantia Kloof was evaluated and design reports for intersection improvements along Crownwood Road were completed. M2 Motorway at Main Reef Road Intersection the preliminary design report and tender document were submitted for approval.  Road Surfacing The roads resurfacing programme continued in all Regions of the City and executed by the JRA’s Road Surfacing Department augmented by appointed contractors. The inception meetings and inspections were convened for the execution of work in 2015/16 financial year. A total of 110.08 Lane Km against a target of 76.04 Lane Km were resurfaced during the first quarter City Wide. M1 , M2 and Soweto Highway The M1, M2 and Soweto Highway projects are being implemented in partnership with SANRAL. Consultants’ tenders for M1, M2 and Soweto Highway closed in May 2015 and evaluation of tenders is in progress. The construction tender for urgent repair work on double decker bridge closed in June 2015 and evaluated in the first quarter. Oxford and Federation tender for the appointment of the contractor was advertised and closed in August 2015 and being evaluated by SANRAL.  Road Reconstruction and Rehabilitation Construction is in progress for Phase I of the project as implemented in Mayibuye, Region A, B, C, D, E, F and G in the 2014/15. Anticipated completion dates are as follows: Phase I:  Regions A&B – 31 March 2016  Regions C&D – 29 April 2016  Regions E&F – 30 October 2015,  Region G – 30 October 2015,

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 Mayibuye – 20 July 2016

Phase 2 The construction tenders for Phase II of the project was evaluated for all seven regions, Region G contractor was appointed and the inception meeting was held in September 2015.The anticipated completion date is 30 April 2016  Road Network Projects Westlake Road Extension project is being implemented in partnership with CoJ Housing Department Construction work continued for the previous financial year. Construction tender for Le Roux Avenue Widening closed and was evaluated in Q1. Inner City Improvements is being implemented in partnership with JDA, two appointed contractors proceeded with the execution of work. From a traffic signal capital infrastructure perspective, the following was achieved during the fourth quarter: o 0 Traffic Signal intersections were installed with CCTV cameras against a target of 0.; o 27 traffic signal intersections were installed with Remote Monitoring Devices against a target of 20.; o 16 traffic signals fitted with adaptive control devices against a target of 10.; o 0 new warranted traffic signals against a target of 0.; o 23 Traffic Signal intersections were re-cabled against a target of 10;; o 16 traffic signal intersections were upgraded to SARTSM requirements against a target of 10,; o 50 controllers were upgraded against a target of 50,; o Procurement of the Traffic Management Centre screen commenced,; o 25 Alternative Energy Alternative Power Sources (LED) related hardware were installed against a target of 25;; o 0 Installation of Uninterruptible Power Supply (UPS) were installed against a target of 0;;

3.2 Service Delivery Challenges

The challenges in quarter one (1) for regional operations were as follows, but not limited to:

 The regions took an initiative to train the general workers to operate small plant with the intention to improve service delivery. Contrary to this objective the same employees stopped work sighting reasons of remunerations. They want JRA to adjust their salaries to the small operator salary. They have stopped work for 5 months impacting on all tar related activities. This in particular is in Region D. To resolve this, the JRA is in the process of filling vacancies during which time, staff operating small plant will be compensated through the provision of an acting allowance;  Human resources capacity is an ongoing challenge in regional operations. There are a number of employees acting in higher posts which is much needed to perform daily duties. However this creates a challenge in that it depletes teams on lower levels thereby compromising on performance;

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 In some cases, there were no suppliers of material until the mid-September 2015. The teams have been working on RFQs to source material however the RFQ process in itself is long. Quarter 2 performance must improve since suppliers are in place.  Shortage of bitumen country wide impacted on performance  Depot Management must implement smart interventions to improve performance.

Some other challenges encountered by the company include: . Poor operational planning and labour issues . Late appointment of consultants (detail design) . System change management (Hansen 8/JDE change) . Poor performance monitoring and evaluation skills

3.3 “Game Changer “programmes

The CoJ established The Communication Lab to enable the City to implement activities that will improve: a) the awareness and appreciation by the citizens regarding the activities and services of the city; and b) the trust and confidence in the CoJ by its citizens based on real service delivery experiences and perceptions.

Based on the latest Quality of Life survey the main issue driving communication seemed not to really be only about service delivery although that remains an area of concern. The issue is that generally people seem to have variant but mostly low perception of the city despite improved service delivery.

The main outcome of the Lab was to enable the city to be projected as a Caring City that is Responsive to the Needs and Future of its Citizens. And furthermore, the Lab was intended to assist the city to close the gap between the Perceptions; Trust and Confidence people have in the city and Actual Experiences. This would be done to enhance the overall message of the city which is “A City @ Work”.

Communications was agreed as the most important Game Changer and a need for a Radical Shift in how communications is conducted within the city was identified.

In response to this requirement, the JRA identified 4 Game Changer Programmes being:

 Customer & Citizen Relations – Find & Fix  Customer & Citizen Relations – Regional Stakeholder Engagement  Branding & Advertising  Improved Perceptions

Progress in relation to these programmes during the 1st quarter is noted as follows:

Game Changer 2015/16 Target Progress – Q1

Customer & Citizen Relations Grow registered users to 20000 Number of registered users 22 000; – Find& Fix and issues logged to 40 000 Issues logged since launch of application = 47 000. This includes duplicated service requests During Q1, a total of 742 service requests were received via the F & F application. Of these, 507 service requests were resolved (resolution rate of 68%)

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Game Changer 2015/16 Target Progress – Q1

Customer & Citizen Relations 7x exhibitions and conferences, Exhibitions: – Regional Stakeholder 2x Exhibitions in July 2015: Engagement • Joburg South Career Expo (20-22 July the 3rd Career Expo held at the Lenasia Civic Centre was postponed; • Gauteng Infrastructure Investment Conference went well and JRA representatives had an opportunity to interact with investors locally and abroad; • 702 Walk- the talk- JRA was allocated water point at Mandela Bridge Parking, the JRA brand was visible and the event was also a success.

2x Exhibitions in August 2015  Mayoral launch Event: Mayoral Flagship Bridge Projects launch held on 6 August at Turbine Hall and was a success. Themed exhibitions setup and project managers were tasked to man stalls and present the project to the audience;  Community Development‟s 3 Days women in business event by providing branded collateral such as JRA folders; pens and sling bags. In return the JRA was allowed to set up its own branding at the venue for visibility purposes as well as wide coverage on the event

7x regional mall citizen engagements; (July 2015): Mandela Day- JRA participated in various initiatives planned per region such as: o 3 homes for senior citizens in Xavier will be visited – Region F o Final paving inside the centre at Othandweni Children‟s Home – Region D o Letsema /service delivery initiatives in Fairland Region C o Greening of London Road and Juskei River Clean-up campaign - Region E Region C : Community outreach programme was conducted at Zandspruit with Transport Department and JPMD

(August 2015) • Region D – Slovo-Ville Outreach programmes, Citizen Engagement, Public Relations successfully held • Region G - Lenasia North Outreach programmes, Citizen Engagement, Public Relations successfully held

8x advertorial p/a: • The appointment of the JRA PR and Advertising panel is underway, should be finalized by mid-September at the BAC

4x external newsletters:  1x Newsletter (On the Road circulated in July 2015)

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Game Changer 2015/16 Target Progress – Q1

Branding & Advertising 10% increase in positive media July 2015: coverage (100x balanced/positive

articles per month):  X 52 articles published,  39 were balanced,   19 were positive and 3 negative

Press Release:

 X4 press release Bitumen Shortage, Emmarentia Dam upgrade, Traffic advisory, Theft and vandalism on traffic lights.  X 5 Interviews were conducted : Soweto TV, Kyk-Net TV, Joburg TV, Rainbow FM and Sunrise TV (E-TV breakfast show August 2015:

 X 59 articles published,  9 were balanced, 34 were positive and 16 negative (a separate report on media coverage for the Flagship launch).  Traffic updates were done on both Lesedi and Motsweding FM 4x media briefings annually • Launch of the Flagship Bridges by the Executive Mayor. Branding of 100% JRA projects: SMME Desk Branding: The SMME Desk branding installation completed in September The Motorway Chromadek Board “You are now entering a JRA managed area” installation commenced in July/August.. 1x customer satisfaction survey: 1x customer satisfaction survey: Improved Perceptions 1x internal employee survey • A Service provider appointed in September 2015, an conducted annually. inception meeting was held on 14 September 2015 with the supplier.

1x internal employee survey conducted annually.

• Internal survey was conducted in the quarter 4 of 2014/15

3.4 Performance against Service Standards The performance of the JRA in relation to the Customer Charter is summarised below. This includes progress over the 1st quarter period as well as the year to date performance. Further detail is provided in the attached Annexure D, JRA Company Performance Report. The performance of the JRA in relation to the Customer Charter is summarised below

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Kpi Activity YTD Performance YTD Performance Year-to-date Reinstatements (3 days) 65,8% 120,0% Potholes (3 days) 80,0% 100,0% 80,0% Traffic Signals (24 hrs) 74,4% 60,0% 40,0% Incorrect street name spelling 100,0% 20,0% corrected (7 days) 0,0% Missing Manhole Covers 4,3% replacement (3 days) Blocked storm water drains (3 61,9% days) Road marking lanes / signs 42,1% repaired (3 days)

The 1st quarter performance of the JRA in relation to the Customer Charter is summarised below

Activity Period Target (%) Requests Attended within 3 % achievement Varience (%) 100,0% days Reinstatements (3 days) Q1 90% 213 101 47,4% 42,6% 80,0%

Q2 90% 372 245 65,9% 24,1% 60,0%

Q3 90% 138 38 27,5% 62,5% 40,0% Q4 90% 288 220 76,4% 13,6% 20,0% Q1 100% 292 192 65,8% 34,2% 0,0% Year-to-date 100% 292 192 65,8% 34,2% Q1 Q2 Q3 Q4 Q1

Activity Period Target (%) Requests Attended within 3 % achievement Varience (%) 100,0% days Potholes (3 days) Q1 90% 2807 2471 88,0% 2,0% 80,0%

Q2 90% 4122 3130 75,9% 14,1% 60,0%

Q3 90% 5435 2314 42,6% 47,4% 40,0%

Q4 90% 2607 1794 68,8% 21,2% 20,0%

Q1 100% 1574 1259 80,0% 20,0% 0,0% Q1 Q2 Q3 Q4 Q1 Year-to-date 100% 1574 1259 80,0% 20,0%

Activity Period Target (%) Requests Attended within 3 % achievement Varience (%) 90,0% days Traffic Signals (24 hrs) Q1 90% 403 358 88,8% 1,2% 85,0%

Q2 90% 1085 893 82,3% 7,7% 80,0%

Q3 90% 610 492 80,7% 9,3% 75,0% Q4 90% 626 470 75,1% 14,9% 70,0% Q1 100% 402 299 74,4% 25,6% 65,0% Year-to-date 100% 402 299 74,4% 25,6% Q1 Q2 Q3 Q4 Q1

Activity Period Target (%) Requests Attended within 3 % achievement Varience (%) 120,0% days Incorrect street name Q1 90% 5 2 40,0% 50,0% 100,0% spelling corrected (7 80,0% Q2 90% 3 0 0,0% 90,0% days) 60,0% Q3 90% 48 5 10,4% 79,6% 40,0% Q4 90% 5 3 60,0% 30,0% 20,0% Q1 100% 0 0 100,0% 0,0% 0,0% Year-to-date 100% 0 0 100,0% 0,0% Q1 Q2 Q3 Q4 Q1

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Activity Period Target (%) Requests Attended within 3 % achievement Varience (%) 35,0% days 30,0% Missing Manhole Covers Q1 90% 11 3 27,3% 62,7% 25,0% replacement (3 days) Q2 90% 7 2 28,6% 61,4% 20,0% Q3 90% 52 13 25,0% 65,0% 15,0% 10,0% Q4 90% 30 9 30,0% 60,0% 5,0% Q1 100% 46 2 4,3% 95,7% 0,0% Year-to-date 100% 46 2 4,3% 95,7% Q1 Q2 Q3 Q4 Q1

Activity Period Target (%) Requests Attended within 3 % achievement Varience (%) 100,0% days Blocked storm water Q1 90% 1143 907 79,4% 10,6% 80,0% drains (3 days) Q2 90% 1166 889 76,2% 13,8% 60,0% Q3 90% 936 419 44,8% 45,2% 40,0% Q4 90% 824 495 60,1% 29,9% 20,0% Q1 100% 983 608 61,9% 38,1% 0,0% Year-to-date 100% 983 608 61,9% 38,1% Q1 Q2 Q3 Q4 Q1

Activity Period Target (%) Requests Attended within 3 % achievement Varience (%) 50,0% days Road marking lanes / Q1 90% 1933 496 25,7% 64,3% 40,0% signs repaired (3 days) Q2 90% 1749 493 28,2% 61,8% 30,0%

Q3 90% 1914 250 13,1% 76,9% 20,0%

Q4 90% 963 207 21,5% 68,5% 10,0%

Q1 100% 2048 862 42,1% 57,9% 0,0% Q1 Q2 Q3 Q4 Q1 Year-to-date 100% 2048 862 42,1% 57,9%

3.5 Capital Projects & Expenditure

Detailed Capital project expenditure is provided as Annexure C to this report

3.5.1 Capex Expenditure - summary

During the quarter a total of R 168,620 million was spent on CAPEX projects against a quarterly target of R 212,286 million. This represents a quarterly performance of 79.5% in comparison with last year’s 1st quarter performance of 47.89%.

Q1 Q2 Q3 Q4 Total

R’ R’ R’ R’ R’

Cash Flow projections 1, 273, 716 212,286,150 566,096,400 1,132,192,800 1, 415, 241, 000 (“burn rate”) ,900 15% 40% 80% 90% 100% Achieved 168,619,922 11,92%

Note: Figures above are cumulative

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3.6 Performance against Institutional SDBIP The JRA progress during Q1 in relation to Institutional SDBIP programmes is provided below

Priority IDP programme Baseline 2014/15 annual 2015/16 Annual Q1 Q1 Actual Key Interventions Progress targets Target Target OUTCOMES 2: PROVIDE A RESILIENT, LIVEABLE, SUSTAINABLE URBAN ENVIRONMENT- UNDERPINNED BY INFRASTRUCTURE SUPPORTIVE OF A LOW-CARBON ECONOMY

Transit Oriented 323.51 lane km 536 lane km of 506.96 Lane km 76.04 110.08 Resurfacing of roads Target was achieved Development - of roads roads resurfaced of roads Lane Lane Km city-wide to improve the Priority areas- resurfaced city-wide as per resurfaced Km visual condition index A total of 110.08 Lane Km was Pavement city-wide as per resurfaced against a target of 76.04 Management Pavement Lane Km. (To be verified) system (PMS) Management system (PMS) Sustainable 43.8 km of gravel 20,92 km of 47.4 km of 0 km 0 km Upgrading of gravel BRAM FISCHERVILLE Human roads upgraded gravel roads gravel roads roads to surfaced roads Construction is in progress and is 47% Settlements to surfaced roads upgraded to upgraded to programme complete. Urbanisation surfaced surfaced road Bram Fishersville, Plan (SHSUP) standard Diepsloot, ORANGE FARM Doornkop/Thulani, Construction is in progress and is 51% Driezik, Ivory Park, complete.

Priority 3: Priority Sustainable human settlements Lawley, Orange Farm, Protea South and DIEPSLOOT WEST EXT.3 Tshepisong Construction is in progress and is 85% complete.

DOORNKOP The contractor was appointed, construction has not commenced due to the late appointment of the consultant. Construction will be completed by June 2016.

LAWLEY EXT.1 Phase I and II contractors are proceeding with construction. (47% completion)

IVORY PARK EXT.9 Phase I and II contractors are

Priority IDP programme Baseline 2014/15 annual 2015/16 Annual Q1 Q1 Actual Key Interventions Progress targets Target Target proceeding with construction. (62% completion)

PROTEA SOUTH EXT 1 Construction is progressing well and is 25% complete with stormwater pipes installation and laying of „imported‟ material from the borrow pit.

TSHEPISONG Phase I and II contractors are proceeding with construction. (64% completion)

5.8 km of opens 4,25 km lane of 5.45 km of 1open 0 km 0 km Conversion of open BRAM FISCHERVILLE drains into open channels channels drains to underground, Construction is in progress and is 99% underground at converted to converted to Bram Fischerville, Ivory complete. specified areas underground underground Park and Orange Farm system Orange system at IVORY PARK EXT.7 farm, Alexandra , specified areas Construction in progress and Ivory Park and appointment of the subcontractors and Diepsloot local labour is also in progress (8% completion)

ORANGE FARM The preliminary and detailed designs have been submitted by the newly appointed consultant. The construction tender was cancelled due to expiry of the validity period. Bid specification documents have been

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Priority IDP programme Baseline 2014/15 annual 2015/16 Annual Q1 Q1 Actual Key Interventions Progress targets Target Target submitted to BSC for approval

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3. 7 Supply Chain Management and Black Economic Empowerment

The entity has adopted Supply Chain Management (SCM) systems in compliance with the provisions of the MFMA and the National Treasury: Municipal Supply Chain Management Regulations, 2005. A SCM unit monitors the implementation of the entity’s SCM policies in line with the regulations which seeks to modernises financial governance and improve accountability and transparency in the entity’s processes. The entity’s SCM policies provide for the exclusion of awards to persons in the service of the state subject to the exemptions and regulations issued by National Treasury from time to time. The entity has established an SMME desk and has issued level one tenders to the registered SMME’s only. These tenders will be awarded during the 2015/2016 financial year. The procurement policy of the JRA The entity has adopted Supply Chain Management systems in compliance with the provisions of the MFMA and National Treasury: Municipal Supply Chain Management Regulations, 2005. This includes a detailed Procurement Policy with the SCM unit being the primary implementer thereof. The policy seeks to ensure that the JRA complies with the Treasury regulations which seek to modernise financial governance and improve accountability and transparency in the entity.

Other Specific Goals In terms of the Regulations (Section 17(3)) the following activities may be regarded as a contribution towards achieving the goals of the Reconstruction and Development Program: a) The promotion of South African owned enterprises; b) The promotion of export oriented production to create jobs; c) The promotion of SMMEs; d) The creation of new jobs or the intensification of labour absorption (which has been interpreted, for the purposes of this guide, to include the employment of local labour); e) The promotion of enterprises located in a specific province for work to be done or services to be rendered in that province; f) The promotion of enterprises located in a specific region for work to be done or services to be rendered in that region; g) The promotion of enterprises located in a specific municipal area for work to be done or services to be rendered in that municipal area (the municipal area may, for the purposes of this guide, be narrowed down to smaller local areas such as suburbs or wards); (h) The empowerment of the work force by standardising the level of skill and knowledge of workers; i) Training and improvement of management skills (formal training of the work force undertaken; j) Training on an enterprise’s own initiative, shall for the purposes of this guide, be recognised in this category); and k) The upliftment of communities within the City of Johannesburg

JRA has appointed Consultants in order to assist the company in shaping the SCM strategy geared to support JRA’s overall objectives and priorities. The entity has implemented the three-stage bidding process with separate Bid Specification, Bid Evaluation and Bid Adjudication committees established.

The Capital projects implemented during the review period served as a mechanism for ensuring participation by SMME’s, Cooperatives and BB-BEE companies. As part of this initiative, a process was commenced to establish a register of SMME’s and Cooperatives on a regional basis. During the 1 st quarter, awards to a value of R 976 867 483.36million were made of which almost 70 % of the value of the tenders was awarded to SMMEs and BEE companies.

Awards to state employees  Legal requirements The JRA enforces the prohibition against granting awards to state employees through the declaration of interest forms. Employees are required to declare their interests in line with the legislation and these declarations are then monitored.  The challenges experienced by the entity This process is not effective given the lack of suitable software and tools to further interrogate the declarations or submissions by bidders to ensure compliance and identify possible awards to state employees.  Mechanism in place or to be put in place to deal with the challenges. A system to address this shortcoming is being investigated and the entity will consider the procurement of software to assist in identifying state employees in contravention of the code of ethics. Suppliers identified, that are blacklisted by National Treasury will be blocked from the JRA Supplier Database.

3.8 Statement on Amounts Owed by and to Government Departments and Public Entities

Amounts owing by other Governmental Departments and Public Entities are note as per Annexure K

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CHAPTER FOUR HUMAN RESOURCES AND ORGANISATIONAL MANAGEMENT

4.1 Human Resources Management

4.1.1 Socio-Economic Context 4.1 Human Resources Management

4.1.1 Socio-Economic Context South Africa remains a dual economy with one of the highest inequality rates in the world, perpetuating inequality and exclusion. The unresolved set of complex socio-economic challenges has locked South Africa into a low-level equilibrium of low growth, persistent poverty and widespread exclusion and unemployment. Although many of the required policy actions are known to the policy- makers, implementation of these has been hampered by a lack of broad political consensus and the “deficit in trust between business, labour and government. According to Statistics South Africa, the unemployment Rate in South Africa decreased to 25% in the second quarter of 2015. In South Africa, the unemployment rate measures the number of people actively looking for a job as a percentage of the labour force.

4.1.2 Talent Acquisition Processes and Regulations The JRA prides itself as an employer which supports the principles of employment equity, and equal employment/opportunity based on competition, equity, and fairness. Employees are recruited, selected, appointed, transferred and promoted on the basis of fairness and non-discrimination in line with the Employment Equity Act, 1998 (Act 55 of 1998) and Employment Equity (EE) Policy of the COJ. The JRA policy prohibits discrimination, directly or indirectly, against any current or prospective employees with respect (but not limited) to race, gender, age, political opinion, religion, marital status, ethnic or social origin, sexual orientation, or medical status. The JRA recognises a need to recruit and select suitably qualified employees, as well as those with potential for development. Employees are selected not only for their ability to contribute to the achievement of the JRA mandate but also for their potential to contribute to improved service delivery to Citizens. The training and development process also aims to provide employees with an opportunity for personal and career growth.

4.1.3 Total workforce by employment type, employment contract, region, broken down by gender Head Office Employment type Work force Employment contract Region Male Female

Top management 7 7 fixed term contracts Head office 5 2

Senior management 22 1 short term contract; 2 Head office 14 8 fixed term contract and 19 permanent

Professionally qualified and 55 2 fixed term contract Head office 39 16 experienced specialists and and 53 permanent

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Employment type Work force Employment contract Region Male Female mid-management

Skilled technical and 98 4 short term contract; 2 Head office 61 37 academically qualified fixed term and 92 workers, junior management, permanent supervisors, foremen, and superintendents

Semi-skilled and 174 10 short term contract Head office 81 93 discretionary decision making and 164 permanent

Unskilled and defined 52 37 interns; and 15 Head office 28 24 decision making permanent

Region A Employment type Work force Employment contract Region Male Female Top management 0 0 Region A 0 0

Senior management 1 1 permanent Region A 1 0

Professionally qualified and 2 2 permanent Region A 1 1 experienced specialists and mid-management

Skilled technical and 2 2 permanent Region A 2 0 academically qualified workers, junior management, supervisors, foremen, and superintendents

Semi-skilled and 35 35 permanent Region A 31 4 discretionary decision making

Unskilled and defined 68 68 permanent Region A 62 6 decision making

Region B Employment type Work force Employment contract Region Male Female

Top management 0 0 Region B 0 0

Senior management 1 1 Permanent Region B 1 0

Professionally qualified and 1 1 Permanent Region B 0 1 experienced specialists and mid-management

Skilled technical and 4 4 Permanent Region B 3 1 academically qualified workers, junior management,

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Employment type Work force Employment contract Region Male Female supervisors, foremen, and superintendents

Semi-skilled and discretionary 35 35 Permanent Region E 27 8 decision making

Unskilled and defined 112 112 Permanent Region E 74 38 decision making

Region C Employment type Work force Employment contract Region Male Female

Top management 0 0 Region C 0 0 Senior management 1 1 Permanent Region C 1 0 Professionally qualified and 1 1 Permanent Region C 0 1 experienced specialists and mid-management Skilled technical and 2 2 Permanent Region C 2 0 academically qualified workers, junior management, supervisors, foremen, and superintendents Semi-skilled and 25 25 Permanent Region C 20 5 discretionary decision making Unskilled and defined 73 73 Permanent Region C 58 15 decision making

Region D Employment type Work force Employment Region Male Female contract Top management 0 0 Region D 0 0 Senior management 1 1 Permanent Region D 1 0

Professionally qualified and 0 0 Permanent Region D 0 0 experienced specialists and mid-management Skilled technical and 4 4 Permanent Region D 1 3 academically qualified workers, junior management, supervisors, foremen, and superintendents

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Employment type Work force Employment Region Male Female contract Semi-skilled and discretionary 44 44 Permanent Region D 36 8 decision making Unskilled and defined 81 81 Permanent Region D 52 29 decision making

Region E Employment type Work force Employment contract Region Male Female

Top management 0 0 Region E 0 0 Senior management 1 1 Permanent Region E 1 0

Professionally qualified and 1 1 Permanent Region E 1 0 experienced specialists and mid-management

Skilled technical and 4 4 Permanent Region E 3 1 academically qualified workers, junior management, supervisors, foremen, and superintendents

Semi-skilled and discretionary 42 42 Permanent Region E 36 6 decision making

Unskilled and defined 107 107 Permanent Region E 82 25 decision making

Region F Employment type Work force Employment contract Region Male Female

Top management 0 0 Region F 0 0

Senior management 1 1 Permanent Region F 1 0

Professionally qualified and 2 1 fixed term Region F 1 1 experienced specialists and 1 Permanent mid-management

Skilled technical and 1 1 Permanent Region F 1 0 academically qualified workers, junior management, supervisors, foremen, and superintendents

Semi-skilled and discretionary 29 29 Permanent Region F 24 5 decision making

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Employment type Work force Employment contract Region Male Female

Unskilled and defined 72 72 Permanent Region F 52 20 decision making

Region G Employment type Work force Employment Region Male Female contract Top management 0 0 Region G 0 0

Senior management 1 1 Permanent Region G 1 0 Professionally qualified and 2 2 Permanent Region G 2 0 experienced specialists and mid-management Skilled technical and 3 3 Permanent Region G 2 1 academically qualified workers, junior management, supervisors, foremen, and superintendents Semi-skilled and discretionary 31 31 Permanent Region G 26 5 decision making Unskilled and defined 82 82 Permanent Region G 59 23 decision making

Strategic Assets (Depots) Employment type Work force Employment contract Region Male Female

Top management 0 0 Strategic Assets 0 0 Senior management 1 1 Permanent Strategic Assets 1 0

Professionally qualified and 5 5 Permanent Strategic Assets 4 1 experienced specialists and mid-management

Skilled technical and 11 11 Permanent Strategic Assets 8 3 academically qualified workers, junior management, supervisors, foremen, and superintendents

Semi-skilled and discretionary 67 67 Permanent Strategic Assets 53 14 decision making

Unskilled and defined 143 143 Permanent Strategic Assets 100 43 decision making

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4.2 Employee Remuneration (Total Q1 Costs) Q1 Employment type Total Costs R’000 Top management 2 278 007 Senior management 6 988 877

Professionally qualified and experienced specialists and 25 814 957 mid-management Skilled technical and academically qualified workers, junior 29 278 723 management, supervisors, foremen, and superintendents

Semi-skilled and discretionary decision making 4 784 352

Unskilled and defined decision making 33 897 659

4.3 Key Vacancies The following are key vacancies during the first quarter:- - Managing Director - Ops Manager : Community Streets ( to resume duties in October 2015) - Regional Operations Manager: Region A - Manager : Risk Management ( to resume duties in October 2015) - Manager: Employee Relations - Depot Manager: Region D

4.4 Employment Equity / Staff Demographic Profile All Municipal Owned Entities are obliged to align to the COJ Economic Active Population Programme (EAP) and as such, the JRA uses the demographics of the COJ Economic Active Population (EAP) to determine its employment equity targets. The table below indicates the applicable percentages that will be used in reporting, in relation to the set numerical goals and targets of designated groups in the JRA. The COJ statistics are utilized only as a benchmark. The EAP statistics are based on the latest information available from the Department of Statistics South Africa (SSA). In order to give effect to structured implementation of the EE Act, the JRA has approved the Employment Equity Policy and Plan to provide a clear framework.

Table: EAP Representatives Profiles for Males and Females as at 20 September 2015 Population Group Economically Active Population % Male Female Total African 67.19% 25.68% 92.87% Coloured 0.86% 0.73% 1.59% Indian 0.55% 0.15% 0.7% Whites 3.25% 1.59% 4.84%

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Table: Employment Equity / Staff Demographic Profile as at 20 September 2015

Foreign Male Female Occupational Levels Nationals Total A C I W A C I W M F Top management 4 0 0 1 2 0 0 0 0 0 7 Senior management 12 0 0 7 5 0 0 4 0 0 27 Professionally qualified and 97 6 7 25 54 4 1 6 3 0 203 experienced specialists and mid-management Skilled technical and 129 5 0 9 86 5 0 13 0 0 247 academically qualified workers, junior management, supervisors, foremen, and superintendents Semi-skilled and 162 0 1 2 22 1 0 2 0 0 190 discretionary decision making Unskilled and defined 692 4 1 7 263 2 0 2 0 0 971 decision making TOTAL PERMANENT 1096 15 9 51 432 12 1 26 3 0 1645 Temporary employees 2 0 0 0 11 0 0 0 0 0 2

GRAND TOTAL 1098 15 9 51 432 12 1 26 3 0 1647

Table: Statistics for the equitable representation, (Section 54 EE Act) as at 20 September 2015

Male Female Foreign Nationals Total Present And A C I W A C I W Male Female Expected

Current 1098 15 9 51 432 12 1 26 3 0 1647 All Employees Proposed 1104 17 11 78 440 20 6 45 6 0 1727

4.5 Skills Development and Training JRA implement skills development and training within the framework of the Skills Development Act, 1998; Skills Development Act 1999 and the National Skills Development Strategy (NSDS) III. The latter makes emphasis on institutional learning linked to occupationally directed programmes with benefit of improved service delivery. The main purpose of skills development training is to provide an institutional framework to devise and implement national, sector and workplace strategies to develop and improve the skills of the South African work force. This is achieved by integrating those strategies within the National Qualifications Framework contemplated in the South African Qualifications Authority Act, 1995.

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Basically the Skills Development and Training provide for and regulate employment services as well as those matters connected therewith, this includes providing on-going training to employees to be able to keep up with new trends, and also improving their skills which in turn will benefit the organisation. 4.5.2 Programme Highlights of the First Quarter Corporate Services arranged for the implementation of several training programmes during the first quarter from July to September 2015. Below is a summary of the various training and development programmes which were implemented during the first quarter: 4.5.3 Siyakhula Trust Portfolio of Evidence (POE) Building Sessions In an attempt to assist Finance staff in meeting the National Treasury Minimum Competency Level Training deadline, Human Capital Development arranged a POE building session. This session allowed the senior facilitator to assist staff to complete their portfolios of evidence so that they could be declared competent before the Treasury deadline of 30 September 2015. Finance staff were given guidance on the best way to compile their portfolios and complete their remediation. 4.5.4 Peer Educators training Peer Education is an approach to health promotion, in which staff members are supported to promote health-enhancing change among their peers. The course in Peer Education dealt with the teaching and sharing of health information, values and behaviour in educating others who may share similar social backgrounds or life experiences. 4.5.5 First Aiders Level 1 Training This first aid course is a standard Occupational Health and Safety compliance training. This training was aimed at those identified as JRA workplace first aid providers. This training allows first aiders to assist during a medical emergency. Medical emergencies related to ill health or an accident which can happen anywhere at any time. This course ensured that delegates know what to do in case of an emergency. The course also emphasised practical skills in a fun and interactive learning environment. Staff which attended the training are now  Able to recognize life-threatening situations.  Able to offer vital assistance before more experienced help arrives.

 Ready to advance your first aid training to the next level.

4.5.6 Presiding and Presenting Officers There were not enough presiding and presenting officers within the JRA. This was seen as a large risk which needed to be mitigated, as not handling disciplinary issues properly could result in: • Appearance that the conduct is acceptable, • Diminished workplace morale and trust, • Damaging the relationship with the employee, • A grievance being filed which is difficult to defend, or • Affecting the relationship with the union The JRA is now capacitated with enough presiding and presenting officers to deal with internal disciplinary matters.

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4.5.7 Quarter One 2015/16 Training Statistics for Period: 01 July to 30 September 2015 The table below indicates all the training interventions implemented during the first quarter (July to September 2015) period:

Education and Training Internal External Training Trained Strategic Skills Priority Priority Training Provider Provider Improve Efficiency Interns 40 172 Degrees/Diplomas 90 (Employees) Degrees/Diplomas 15 (Bursars) Postgrad Qualifications 27 Develop Management & Basic Computer Training 17 218 Supervisory skills OHASA Training 34

Wits Management 10 Development Programme EPWP (Orange Farm, Gravel 53 Roads Project.

Presiding and Presenting 19 Officers Workshop

VAT Back to Basics Seminar 2 Skills Programme: Road 18 Maintenance and Road

Markings Project :Road Resurface RPL road construction 31

certificate

Peer Educator‟s 34

OHASA Training – First 20 62 Other Aiders Level 1

Siyakhula Trust POE Building 15

Sessions SARF Road Safety Seminar 9

OHASA Training EMS 18

Total 36 416 452

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4.6 Performance Management & Succession Planning Performance Management for the 1st quarter can be discussed under three main headings, namely: • Finalisation of the 2014/15 performance management process • Implementation of the approved Performance Management and Development Policy, • JRA Inter-Change Project: Close-out reporting and extension of the project scope.

4.6.1 Finalisation of the 2014/15 Performance Management Process During 2014/15 and preceding years, performance management and development framework was only applicable to employees on salary 1 – 5. All employees were expected to submit their assessment by the end of the financial year. To qualify for individual performance bonuses, the annual performance score for the company should equal 75% or higher. The JRA however only achieved an annual performance of 60.2% and it was hence confirmed by the Board that no individual bonuses will be paid for the 2014/15 financial year. 4.6.2 Implementation of the approved Performance Management and Development Policy The Performance Management and Development policy was approved by the Board at the end of June 2015. The approved policy introduces performance management to all levels within the JRA, inclusive of performance management for teams. The implementation plan of the policy within the JRA was agreed upon and the following has been accomplished so far:  All employees have been informed of the approved policy and have access to such on the JRA Intranet  The Standard Operating Procedure for Performance Management was finalised and approved  Except for the Core Management Competency component of the Balanced Scorecard template for levels 1 to 5, all relevant Performance Management templates in compliance with the policy requirements, were finalised,  In order to align the Core Management Competencies, which is a requisite component of the Balanced Scorecards for salary levels 1 to 5, with the management competencies as contained in the newly developed job profiles, a process has been embarked upon to align the JRA Competency Framework with the Core Management Competencies (CMCs) and to develop 4 proficiency levels for each of the CMCs.

4.6.3 JRA Inter-Change Project: Close-out reporting and extension of the project scope Apart from the remuneration benchmarking process, salary structure proposal, finalisation of the Remuneration and Reward policy and the skills audit process, all the other project outputs were finalised by 30 June 2015 and a preliminary report submitted and presentations made to executive management during early July 2015. In the interest of quality project outputs and due to the nature of the outputs, requiring an intensive consultation process with the JRA executive management with regards to the remuneration benchmarking and the salary structuring proposals, and the extensive involvement of all JRA employees in the skills audit process, the project governance structure allowed an extension on time for these outputs..

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A consultative process was embarked upon over the past 2 months in order to incorporate recommendations from executive management in the remuneration benchmarking and salary structuring process. Remuneration benchmarking was re-aligned from the 50th to the 25th percentile of the national market and the Construction Industry and the final salary structure proposal is ready to be submitted for approval. The final due date for the completion of all skills audit assessments was 28 August 2015. The JRA has achieved an overall completion percentage of 77%. The preparation of Individual Development plans and feedback reports are in progress. A final project close-out report, which covers the project findings on all the project outputs (except for the skills audit), was presented to executive management during August 2015. This report also contained an implementation plan that provides a roadmap for the JRA to follow in the short, medium and long term, in order for the organisation to address identified problem areas. In order to redress some of the project findings an extension of the project scope was proposed to cover best practice remedial interventions.

4.7 Disciplinary Matters and Outcomes 4.7.1 Disciplinary cases conducted and finalized:  Three (3) Cases of theft handled, of which 1 was finalized (dismissal). Two (2) cases are in- hand;  Four (4) Cases of AWOL reported of which 1 employee was dismissed. Two (2) Investigations underway. One (1) case is disciplinary hearing in hand;  Two (2) Cases of fraud reported, of which 1 is still under investigation. One (1) case is in hand.

4.7.2 Suspensions: Six (6) employees currently on suspension pending investigations and disciplinary procedures.

4.7.3 Conciliations and arbitrations:

 Five (5) Conciliations conducted;  Two (2) arbitrations concluded in favour of the JRA.  Two (2) referred to arbitration;  One (1) matter was withdrawn by the applicant

4.7.4 Grievances: Five (5) Grievances handled

4.8 Leave and Productivity Management 4.8.1 Leave Management The entity is committed to the effective management of leave for its employees. To this end, supervisors and line managers are charged with the responsibility of leave management within their respective units. It is however acknowledged that challenges exist within the current manual leave management system. It is anticipated that this system will become fully automated during 2015/16.

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The JRA has also approved the process to migrate to new SAP system which will be implemented in the 2015/16 financial year Operation Clean Audit (OPCAR) is being utilised to assist in the leave management. Access to leave input on JDE has been centralised to head office.

4.8.2 Productivity Management The roll out of the productivity programme has been put on hold by the CoJ.

4.9 HIV/AIDS in the workplace 4.9.1 Wellness Programme An Integrated Employee Health & Wellness Policy as well as the Employee Health & Wellness Plan has recently been approved to manage related issues. The purpose of the policy and the plan is to improve the quality of life of the employees through provision of quality, sustainable and life-long wellness programmes. The business is in the procurement process of a partner that will provide some of the services in line the business hybrid approach to employee health and wellness manners. As part of encouraging healthy lifestyle, 60 JRA employees have recently participated SAIMSA games held in Lesotho, Maseru. To encourage responsible citizenship, JRA in partnership with South African National Blood Services (SANBS) have recently conducted a blood donation drive. Further events are being planned in this regard. 4.9 .2 HIV / AIDS Whilst the JRA accepts that wellness within the context of its employees goes beyond the issue of HIV/AIDS, the JRA recognises that this remains a global concern and that South Africa in particular is still experiencing an HIV/AIDS epidemic. The JRA further acknowledges the seriousness of this epidemic and the significant impact it has on its employees and their families. An approach adopted by the JRA seeks to ensure a consistent and equitable approach to the prevention of HIV/AIDS infections amongst its employees and management of the impact that it would have in the workplace. The Policy was developed jointly with the employer and organised labour. The JRA is committed to creating an environment where human rights and the dignity of all employees, including those living with HIV/AIDS, are recognised and promoted. It is also committed to implementing measures that will safeguard the confidentiality of employee health information in line with medical ethics and acceptable norms and standards. The JRA, in partnership with the City’s Health Department, continues to create awareness and educate employees about HIV/AIDS. Counselling and support is continually offered to employees. The JRA in partnership with City’s Health Department is continuing to create awareness and educate employees about HIV/AIDS through condom distribution, posters and visits as this condition affects us, our families and community at large. Counselling and support is continuously offered to employees and their families. The process of establishing a working relationship with an external Wellness service provider is well underway and progress is being made in that the specifications have been developed in order to advertise the tender to secure a suitable service provider for the JRA. OLD MUTUAL has also been engaged in order to roll out their Money Management Programme which is intended to assist in the alleviation of financial management challenges faced by JRA employees that impacts negatively on job performance and productivity.

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4.9.3 Employee Retention Employee retention is an on-going process of analyzing, developing and effectively utilizing talent to meet business needs. It is designed to support the leadership, career planning and overall development of all employees. Its primary focus is to develop an understanding of the skills, experience and capabilities that the business needs in order to deliver on its objectives In order for the JRA to mitigate the risks of losing highly skilled, competent and knowledgeable employees, the organization will amongst others interventions implement the following actions:  Develop a flexible remuneration and reward strategy to create a sound basis for decision making and to remain competitive;  Conduct regular salary benchmarking surveys to remain competitive;  Conduct regular surveys to determine employee attitudes and satisfaction;  Recognize good performance;

 Provide development opportunities;  Allow voluntary job rotation to afford employees opportunities to learn new jobs and activities

4.10 Employee Benefits

The JRA provides employment benefits to its employees as prescribed in the Basic Conditions of Employment Act (BCEA). This is also in line with collective agreement

4. 10.1 Pension Fund Benefits The JRA provides pension benefits to its employees through membership in accredited funds as listed hereunder. The benefit is facilitated by the employer, and allows for the investment of employees' retirement fund contributions (inclusive of employer portion). The contribution split ranges from 7.5% to 9.5 % employee contributions and from 15% to 22.5% employer contributions. The full contribution is borne by the TCTC employees.

NAME OF PENSION FUND NUMBER OF EMPLOYEES E-Joburg Retirement Fund 1165 Municipal Gratuity Fund 104 Municipal Employees Fund 37 City of Johannesburg 278 National Fund for Municipal Workers 1 TOTAL 1485

4.10.2 Medical Aid Participation in a medical aid scheme is compulsory for all employees; however employees are afforded the freedom to select their preferred medical aid provider from the list of contracted providers as indicated below.

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Contributions are made by both the employer and employee, with employer and employee contributions at 60% at 40% respectively. Employees participating in the Total Cost to Company (TCTC) scheme are not covered by this arrangement as their packages are inclusive

NAME OF MEDICAL AID NUMBER OF EMPLOYEES FUND

BONITAS 292 HOSMED 60 KEYHEALTH 53 LA HEALTH 186 SAMWUMED 336 TOTAL 927

4.10.3 Other Benefits

NAME OF BENEFIT QUALIFICATION CONDITION RELATED AMOUNT/RANGES

Housing Subsidy Only permanent employees qualify. The Employees should submit their R648.00 benefit is also limited to basic salaried as Mortgage bond documents to employees on TCTC already have this Human Capital Management ( benefit incorporated into their packages. HCM) Hostel allowance Only permanent employees qualify. The Employees should submit a benefit is also limited to basic salaried signed copy of their lease R632.00 employee s employees on TCTC already agreement to either JOSCHO have this benefit incorporated into their or the City Housing packages Department. Travelling (locomotion Only permanent employees qualify. The Depends on the position and The benefit amounts to allowance) benefit is also limited to basic salaried occupational level. Employees R3500.00 currently. employee as employees on TCTC already are required to submit their car Employees are required to have this benefit incorporated into their registration papers, and the car submit their log sheets at six packages in question must be registered months intervals to enable in their name. HCM to consider additional loco adjustment Cell phone allowance Only permanent employees qualify. Depends on the position and Depends on the employee occupational level. occupational level, allowance

ranges from R440 to R 800.00

4.11. SAFETY, HEALTH AND ENVIRONMENT (SHE) During the 1st quarter, the following activities were carried out throughout all Regions: Occupational Safety: Safety, Health and Environmental Committee

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Occupational Health and Safety Committee structures in every Region has over the years proved to be a powerful tool to assist managers and employees alike to be able to address health and safety issues which arise in the workplace. However, very few meetings took place during this quarter. To date, 17 meetings took place during July and August.

REGIONAL DEPOTS : SHE MEETING COMPLIANCE

JULY AUGUST

Asphalt Plant Asphalt Plant Head office Avalon Waterval RSD Norwood Norwood Zandfontein Zandfontein Midrand Benrose Fleet and Plant Fleet and Plant Traffic Signals Waterval

Hazard Identification and Risk Assessment Mokone HSE Consultants have completed the Hazards Identification and Risk Assessment (HIRA) process for JRA. The risk assessment will assist the employees to improve the current control measures in order to work safely without injuries as much as possible. The report will be forwarded to the depots for implementation. Empower Risk consultants has also completed its work in assisting JRA with Baseline Risk Assessment (BRA) for Capex Projects. This BRA will be roll out every time a project commence.

Contractor Management is closely monitored in line with the implementation of the new Construction Regulations. The regulation has put pressure on JRA to ensure that contractors appointed, do comply with the Minimum Requirements of the Health and Safety Legislation. The following contractors submitted Safety files for inspection and approval as well as periodic site inspections were carried out.

Compliant contractors

Sakhile(2) Assatico Civils, WA Road Ikayeszi Holdings Bophelong Civils

Tshipembe Mzansi Tranacon(, Goitsebasadi Route 7, Construction Primat Holani WA Road Superway Road, KPG,

Medical Surveillance Programme Medical Surveillance Examination is a programme that is carried out annually to monitor the exposure of employees to health hazards. There is also a pre-employment examination that is conducted for all newly appointed employees, to determine and monitor the status of their health, to prevent them from

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acquiring work related illnesses. The medicals surveillance programme was attended by three hundred employees (300).

REGIONAL DEPOTS TYPES OF MEDICAL SURVEILLANCE Periodic Pre -Employment Exit 7 3

Fleet And Plant 2 Benrose 104 R 82 Norwood 32 Zandfontein 70 Total 290 7 3

Management of Injuries on Duty The JRA injury incidents are reported according to Reportable Cases Rate values (RCR). The acceptable and recommended best practice reportable case rate value is one (1). Exceeding the value of one (1) becomes a clear indication of inadequate commitment to safety behaviours and principles and control measures. It is important to manage injury incidents to levels below the value of 1 (one). In the first quarter, eighteen (18) reportable cases were reported. The depots are demonstrating an improvement in terms of the efficiency of our control measures, safe behaviour and management commitment to enforce compliance. Table 1 (RCR) shows the first quarter recordable case rate value at (0.07), falling below the acceptable limit with a value of 1.

Table 1: REPORTABLE CASE RATE (RCR)

2015/ 16 Financial year No of Reportable Reportable Month No of employees No of hrs Hrs in month Hrs in yr Cases Case Rate FIRST QUARTER 2015 15-Jul 1666 184 306544 56404096 7 0,024820892 15-Aug 1660 160 265600 42496000 2 0,009412651 15-Sep 1647 168 276696 46484928 9 0,038722228 Q1- Total 0,072955771

Table 1: The July and September month demonstrated high incidents rate. Negligence and poor judgement resulted in high number of minor injuries.

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Recorded incidents at Regional depots Table 2 DEPOTS QUARTER 1 QUARTER 2 QUARTER 3 QUARTER 4 Total Asphalt Plant 0 Benrose 2 Avalon 1 Dobsonville 5 Waterval 0 Hamburg 3 Strydom Park 0 Midrand 0 Motorways 4 Norwood 1 RSD 2 Zandfontein 0 Traffic Signals 0 T. M North 0 T.M Central 0 Fleet and Plant 0 Head Office 0 Total 18

Table 3

INCIDENT STATISTICS : QUARTER 1 7 6 5 4 3 2 1 0

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The graph above demonstrates a gradual increase of injuries in Quarter (18). However Motorways and Dobsonville are a concern with high incidents i.e. Dobsonville (6) and Motorways (4).The high levels of injuries can be attributed to negligence and failure to follow operating procedures. Environmental Management Compliance 1. Licencing of the Asphalt Plant. There is no progress regarding the improvement on the emissions from the Asphalt Plant causing health and pollution nuisance to the surrounding neighbouring businesses. 2. Environmental Management Compliance a. Waste Management Compliance Envirolution consultants have completed the project at the end of August. On the 8th September 2015 all Depot Managers were invited to attend a workshop in order to understand the findings of the assessment report as well as the implementation of proposed corrective actions. The workshop also highlighted penalties that will be instituted against the JRA failure to comply with the Waste Act No. 59 of 2008. b. Green Environment- Arbor Month City Parks to donate 100 trees to be planted at the Regional depots celebrating Arbor month. Regional depot tree planting started on the 14th September 2014 ensuring that the JRA contributes towards greening the environment and ensure reduction of both carbon footprint and greenhouse effect. It is envisaged that emissions emanating from the JRA fleet may be filtered by trees and dust trapped by tree’s foliage ensuring that air pollution is reduced.

Environmental Management Compliance

3. Asphalt Plant Compliance. The Asphalt plant has been issued with the Provisional Atmospheric Emission Licence which expires in 2016. The Plant is not complying with the Air Quality Act as it currently emitting pollutants which exceed limits prescribed by the Act. Authorities have issued a notification to close the Plant based on the black smoke stack emissions emanating from it. Processes are underway - to motivate for the procurement of a new plant to address the current air pollution conditions emanating from the Plant.

4. Waste Management Compliance The consultants are currently in the process of categorising waste and also developing an environmental management plan to ensure that both waste storage and disposal are compliant with the Waste Act No. 59, 2008. The project will be completed in July 2015.

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CHAPTER FIVE FINANCIAL PERFORMANCE

5.1 Statement of Financial Position and high level notes  The cash on hand at the end of first quarter was R 459, 112 million as compared to R 425, 739 million at the 30 June 2015

 There is an accumulated surplus of R 183, 211 million at the end of the first quarter as compared to an accumulated surplus of R 166, 802 million at 30 June 2015.

5.2 Statement of Financial Performance and high level notes  The net operating profit for the quarter is R 16, 410 million;

 For the first quarter the operating expenditure was R 229, 185 million

 The current ratio at the end of the first quarter is 1,39 , compared to 1, 24 at the 30 June 2015.

5.3 Cash Flow Statement

Refer Annexure I

5.4 Ratio Analysis

(To be provided in Final report)

5.5 Report on Irregular, Fruitless and wasteful Expenditure and due Process

5.5.1 Irregular Expenditure

There was no irregular expenditure identified during the 1st quarter.

5.5.2 Fruitless and Wasteful expenditure

There was no Fruitless and Wasteful expenditure incurred during the 1st quarter period.

5.5.3 Deviations During the 1st quarter, the deviations reported amounted to R 2 070 999.94. These were emergency appointments as noted in the schedule below

Dept Appointment Contract No / Supplier Value Nature of Service/ Goods Date Order No (Exclusive) Deviation delivered MF 01/07/2015 054/2012 Afhco Holdings R107 010.00 Sole Appointment of Afhco Supplier Holdings (Pty) Ltd for the provision of packing facilities ID 07/08/2015 091/2015 Triakon R1507 774.94 Emergency Emergency Stormwater Professional Appointment Projects in Randburg at Engineering 21 Hans Schoeman Services Street and the Shopping Centre in

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Dept Appointment Contract No / Supplier Value Nature of Service/ Goods Date Order No (Exclusive) Deviation delivered Malanshof: A complaint was received from the resident of No.21 Hans Schoeman street. The owners concern was a sinkhole that had occurred on the property due to a collapse of stormwater manhole, which imposed danger to the owner‟s children. This is an unsafe situation. FM 04/09/2015 107/2015 Ambassador R 456 215.00 Emergency Emergency Air Services Appointment appointment for the (Pty) Ltd repairs of the Air conditioning system at Johannesburg Roads Agency Head Office. The air-conditioning system at head office has been malfunctioning since 27th of August 2015, which resulted in high temperature rising to unbearably high levels. The temperature is a health and safety hazard to JRA employees , which necessitated the Acting Accounting Officer to request staff to work in alternative locations / areas.

All deviations were approved by the Accounting Officer.

5.6 Pending Litigation and possible Liabilities

Pending and / or possible litigation against the JRA are noted hereunder: Date From Reason Amount Claimed Progress Comments October, 2012 #01 Employee suing R2, 5 million Matter was Awaiting a notice of set JRA for removed from the down defamation roll at the (refer note below) instance of the plaintiffs and tendered costs. We have instructed our attorneys to recover the costs

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Date From Reason Amount Claimed Progress Comments and reinstate the matter October, 2012 #02 Employee suing R2, 5 million Same as above Same as above JRA for (refer note below) defamation

October, 2012 #03 Employee suing R3 million Same as above Same as above JRA for (refer note below) defamation November, 2013 Brian Bracher The Plaintiff is Specific The JRA to The JRA is yet to suing the JRA to performance comply with the appoint a service fix a stormwater court order provider to fix the drain drain which causes flooding on his property October, 2014 Bareki The Plaintiff is R159 373. 28 Entered an We hold the view that Management suing the JRA for appearance to the claim has Consulting an outstanding defend prescribed invoice July, 2013 Khumo ya The Plaintiff is R955 892.04 We have filled an Awaiting notice of set Khomotso (Pty) suing the JRA for exception to their down on the exception LTD an outstanding plea payment July, 2011 Superway (Pty) The Plaintiff is R 158,181.42 Matter postponed Submitted a report to LTD suing the JRA for sine die to pursue the CFO for his retention monies settlement endorsement negotiations July, 2011 Midnight Moon Same as above R 3870.169.09 Same as above Same as above Trading 105 (Pty) LTD Khumo ya The Plaintiff is R 3 650, 066.38 Entered an Awaiting notice of set Kgomotso v JRA suing the JRA for appearance to down October, 2014 retention monies defend

November, 2012 #04 The JRA is being Dismissal Matter dismissed Awaiting notice of set sued by the by the CCMA and down (refer note below) Plaintiff for failure the Plaintiff has to renew the fixed since referred the term employment matter to the contract labour court November, 2014 Lucienne The Plaintiff has Interdict Filled opposing Awaiting notice of set Nanetter Raab & applied for an papers down Others order instructing the JRA to withdraw a wayleave granted to a construction company July, 2011 Superway The Plaintiff is R1 , 277,649.41 Matter postponed Submitted a report to Construction ( suing the JRA for sine die to pursue the CFO for his Pty) Ltd retention monies settlement endorsement negotiations 11 February, ZD Investments The Plaintiff is R7 339. 628.00 Filled a plea Awaiting notice of set suing the JRA for

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Date From Reason Amount Claimed Progress Comments 2015 cc not being down appointed as the preferred bidder although a letter of appointment was not issued. Note: #01 to #04 not disclosed in order to protect the employees identification

5.7 Insurance Claims against / to MOE / Department

5.7.1 Insurance against JRA Claims made against the JRA is provided in detail as Annexure M to this report

In summary, the following claims have been received during the 1st Quarter:

Letter of Demand Normal Claims Summons Total July 2015 23 22 45 August 2015 26 3 22 51 September 2015 39 26 65

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5.7.2 Insurance Claims (JRA claims against 3rd party)

Claims issued by JRA against 3rd parties during the 1st Quarter are as listed in the table below:

All claims Theft / Vandalism Accident

Month Amount Total 15/16 Month No of Amount Total 15/16 Month No of Amount claimed Total claimed incidents claimed incidents (R) 15/16 („R) (R) Jul 15 2150 845,51 4 099 439,11 Jul 15 72 1 336 325,41 2 218 139,80 Jul 15 136 814 520,10 1 881 299,31 Aug 15 988 937,71 Aug 15 33 368 046,95 Aug 15 86 620 890,76 Sept 15 959 655,89 Sept 15 42 513 767,44 Sept 15 69 445 888,45 147 291

CHAPTER SIX AUDITOR-GENERAL AND INTERNAL AUDIT FINDINGS

6.1 Results of Internal Audits

Progress on the status of internal controls based on the audits completed from 1st July 2015 to 30 Sept 2015 is that controls are adequate, with a need for improvement on the effectiveness to provide reasonable assurance that JRA objectives will be achieved.

Name Audit Area Date Opinion Expressed Rating Completed Supply Chain Management July 2015 Adequate with a need for Yellow improvement on the effectiveness Leave Management Audit Aug 2015 Adequate but ineffective Yellow

IT General controls audit Sept 2015 Adequate but ineffective Yellow

Business Planning and Development Sept 2015 Adequate and effective with a need Yellow for improvement

Mobility and Freight Infrastructure Sept 2015 Adequate but ineffective Yellow Maintenance Including infrastructure protection follow up audit

Key Control Assessment(Q3 and Q4) Aug 2015 Adequate but ineffective Yellow

Legal Services Management follow up Sept 2015 Inadequate and Ineffective Red Audit Performance Information Audit (Q3 and Aug 2015 Adequate and effective Green Q4). Recruitment Interview Observations Jul- Sept 2015 Adequate and effective Green

Bids Observations Continuous Audit Jul- Sept 2015 Adequate and effective Green

6.2 Progress on the resolution of internal audit findings

Of the 133 findings Internal Audit findings opening balance as at 1st July 2015, seven (7) findings were not yet due as at 23rd September 2015 and five(5) findings, falls within the City Group Governance mandate and were transferred for implementation through City Group Internal Audit, resulting in a total number of 122 findings due for the JRA to resolve. Progress against these findings is as follows:

Findings Q1 Target Resolved in Q1 Unresolved 122 24 28 94 20% 22.9% 77.1 %

New findings within the quarter:- Thirty four (34) new audit findings were reported by Internal Audit during the 1st quarter, based on completed audit reports.

Summary of resolution of Internal Audit Findings for Quarter 1

Description Total Findings Total Total Transferred to Not yet due resolved Unresolved Group Q1 Governance Opening balance as at 1 133 28 94 5 6 July 2015 Less findings transferred (5) to COJ Total Balance of JRA 128 28 94 6 findings Plus New findings issued 34 34 within the 1st Quarter. Totals findings as at 162 28 94 40 23rd September 2015

Detailed Status of unresolved findings with management actions and progress Description Management action Plans and Responsible Timelines Progress Person 94 unresolved findings All HOD‟s and Continuously and  Schedule of internal audit findings is Internal Audit. quarterly. a standing Agenda Item at EMT for 7 findings not yet due and All HOD‟s and Continuously and management tracking. 34 new findings not yet due Internal Audit quarterly. and not yet followed as they  Schedule communicated by Internal were issued in Q1. Audit to all HOD for tracking of implementation of action plans to resolve audit findings and evidence of resolution provided to IA.

 7 findings action plans were not yet due and are in progress of being resolved.  Internal Audit to conduct follow up audit as per the approved audit plan.

 Progress on the status of resolution of Audit findings to be tabled at EMT and reported quarterly to Audit Committee and COJ.

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6.3 Progress on the resolutions of audit findings by the Auditor General

Management Letter issues (AG) 6.3.1. 2014/15 Audit. The 2014/15 Regulatory audit commenced on the 17th August 2015 with the Engagement Letter and the Audit Strategy discussed with and approved by Management and the Audit and Finance Committee on the 20th August 2015.The Financial Statement and the Annual Performance report was submitted to AG on the 31st August 2015 and acknowledged by the AG. The Audit is still in progress and is monitored through the Audit Steering Committee meetings held bi- weekly.

6.3. 2 2013/14 Audit The audit was completed by the Auditor General in November 2014 and the JRA received a clean audit opinion, with thirty six (36) audit findings in the management letter which were categorized as follows:

Category Number

Significant (AOPO) 1

Other important matters 27

Administrative matters 8

Out of the 36 findings, with twenty nine (29) resolved as at 30 June 2015, seven (7) remained unresolved. Of the seven (7) unresolved as at 1 July 2015, two (2) were unresolved.

Summary: Out of a total of 36 findings raised, thirty one (31) being 86 %( 31/36) have been reported as being resolved by management and Internal Audit and five (5) being 14 %( 5/36) as unresolved.

6.3.3 Commitment by the Audit Committee to resolving audit findings

The Audit and Finance Committee remains committed to resolving audit findings and receives quarterly reports on progress made by management in this regard. The Committee has raised concerns of inadequate cooperation with External Audit (AGSA) by management in their meeting held on the 09 September 2015 and Management committee to improve the level of resolution of Internal Audit findings including AG. Internal Audit findings are being tracked monthly through the Executive Management Meeting and quarterly to the Audit and Finance Committee through follow up audits reports.

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ANNEXURES

Annexure Description Page

Annexure A JRA Strategic Risks 78

Annexure B Supply Chain Progress (per capital project) 85

Annexure C CAPEX Expenditure Report Summary: as at December 2014 92

Annexure D JRA – Q4 Company Performance – 2014-15 97

Annexure E INJURIES ON DUTY 133

Annexure F Detailed Income Statement 136

Annexure G Notes to Financial Statement 139

Annexure H Balance Sheet 142

Annexure I Cash Flow 143

Annexure J Fraud Allegations register 144

Annexure K Statement on Amounts Owed by Government Departments 145 and Public Entities Annexure L Contracts Awarded 146

Annexure M Claims against JRA 151

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ACRONYMS

Acronym Detail Acronym Detail AFS Annual Financial Statements LLB Bachelor of Laws B Proc B Proc – Baccalaureus Procurationis MFMA Municipal Financial Management Act BEE Black Economic Empowerment NSDS National Skills Development Strategy BB-BEE Broad Based Economic Empowerment OHASA Occupational Health and Safety Act CAPEX Capital Expenditure Opex Operational Expenditure COBIT Control objectives for information technology PAYE Pay as you earn CoJ City of Johannesburg PDR Preliminary Design Report DDR Detailed Design Report RITC Risk and IT Committee EAP Economic Active Population RFQ Request for Quotation EE Act Employment Equity SCM Supply Chain Management EFF External Finance Fund SDBIP Service Delivery Budget Implementation Plan EFT Electronic Financial Transfer SMMEs Small Medium Micro Enterprises EMT Executive Management Team UPS Uninterrupted Power Supply GRAS Group Assurance Services USDG Urban Settlement Development Grant JDE JDE Accounting System VAT Value Added Tax JSIP

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Table: Summary of JRA Risks Annexure A

Risk No Categorisation Background Consequences Controls

Risk 1 Reducing confidence in JRA's 1. Inadequate resources i.e. human 1. Reputational damage A list of all critical positions were submitted to HCM inability to effectively implement resources, fleet and plant 2. Community dissatisfaction and safety and Finance. CAPEX projects and adherence 2. Poor quality workmanship 3. Negative perception on the JRA to the Customer Service Charter 3. Poor responses from support business performance RO is planning a session where the annual units, SCM, HRC 4. Delays in service delivery implementation plan will be developed and 4. No agreed SLA's between the business 5. Material over/under spending of submitted to EMT for approval and distribution. JRA units budget appointed City CSA. The process of appointing the SMMEs and Coops should start soon. 5. Lack of supervision by management 6. Inability to spend allocated Capex 6. Lack of Hansen 8 training budget 7. Ineffective use of overtime 7. Service delivery adversely affected The SCM strategy has been presented to EMT and the AFC, and a follow up review workshop is 8. Poor implementation of SCM 8. Reduced future budget allocation scheduled before end of September. Procurement Plan by user departments 9. Community dissatisfaction

9. Lack of a procurement strategy Reprioritisation report was done end March 2015 10. SCM policy not supporting and proposed actions implemented accordingly construction industry specifics after MD sign off from end April onwards. 11. Lack of forward planning by the

company (Planning Department) A project implementation approach was done 12. Lengthy procurement process drafted as well as a three year implementation plan 13. Community disruptions (community to take into account the linkages between projects resisting projects, disputes with EPWP and dependency on other departments such as labour rates, SMME development SCM, Planning etc. approach) 14. Compliance requirements i.e. OHSA, way leaves etc. 15. Too many projects awarded to one contractor 16. Internal labour disputes 17. Inadequate project management personnel capacity

78

Risk No Categorisation Background Consequences Controls

18. Delays in the provision of hardware and software for the Design Office Risk 2 Ineffective Business Continuity Disaster Recovery Management 1. Halt to operations in event of disaster JRA is embarking on a BCM programme and is in Management 1. Inadequacy of the robustness of the 2. Non-payment of salaries, service the process of developing a BCM policy and disaster recovery plan to respond to providers and taxes framework due for approval by end of Q1 2015/16. natural disasters (flooding, sinkholes, 3. Inability to Recover JRA Business Thereafter will be the implementation and starting earthquakes, tremors) Systems with the BIAs. 2. No network connectivity 4. Qualified Audit 3. No regular testing of the DRP 5. Non-compliance to governance However we are aware that GRAS has issued a 4. Lack of awareness of the DRP to all framework tender. JRA currently does not have a resource nor expertise and was exploring external services to stakeholders 6. Reputational damage assist with the next process. 5. IT Disaster Recovery Plan is not 7. Injuries to employees and members

informed by the JRA Business Continuity of the community There is an existing BCP plan which is outdated. A Plan 8. Stoppage of normal operational service provider has been appointed to conduct an 6. Lack of awareness of the DRP to all activities stakeholders impact assessment and assist to update the current BCP to accommodate the current JRA operations. 7. Lack of Crisis communication plan (as part of crisis contingency plan) Business Continuity Plan There are delays in the appointment of a Facilities Partner by SCM. The scope of work includes the 1. Major power failures, outages and development of a Facilities Recovery Plan. 2. Downtime towards business, systems

and infrastructure, The back-up generator and elements connected to it are tested on a monthly basis. Maintenance of the power supply is conducted yearly. The connection of the goods lift to the back-up generator was completed on 06 September 2014; the goods lift will be operational in case of power outage. On the 12 May 2015; a service provider was appointed to assist with the connection of red plugs to the back-up generator at all JRA sites. The work has resumed and will be completed on 28 August 2015.

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Risk No Categorisation Background Consequences Controls

Connection of air circulation units to the back-up generator work has resumed and is at 95% to completion. Risk 3 Potential closure of the Asphalt 1. Ageing infrastructure 1. Poor service delivery The Cost Benefit Analysis report will be presented Plant and inadequate production 2. No Original Equipment Manufacture 2. Productivity compromised to the Board for approval on 30 September 2015. of the asphalt (”not fit for procedure manuals 3. Injuries to employees purpose”) 3. Minimum or non-production of asphalt 4. Not meeting KPI's of sales The Cost Benefit Analysis presents options that the 4. Contracts for bitumen and aggregates 5. Asphalt plant breakdown Board will decide on, i.e. Refurbishment of the have expired 6. Daily demands for regional current plan, commissioning a new plant and 5. Old plant parts not be supported by the operations and private sales not met discontinuing the operations of the plant original supplier 7. Temporary licenses may be revoked 6. Normal wear and tear 8. Penalties and fines arising from 7. Ongoing operations stoppage due to excessive pollution and non-compliance lack of materials to legislation and regulations 8. Outdated materials usage - Burner 9. Litigation arising from lawsuits Fuel Oil 10. Financial loss - investments required to maintain the plant and value for money for outside contracted rates for materials 11. Inability to meet Customer Service Charter Standards 12. Loss of income from sales of excess asphalt Risk 4 Failure to implement the ICT 1. Maturity assessment not completed 1. The IT department will remain an The implementation plan will be finalised upon of Governance 2. Limited resources i.e. funding operational unit, and will lack to address the maturity assessment report roadmap approval. 3. Inadequate IT Structure strategic issues. 2. Non-compliance to regulatory RITC reviewed the report and the committee requirement and best practise. requested that this incorporates budget and 3. Failure to derive value from IT National Treasury requirements investments, manage IT risks and resources, alignment to business objectives, measure IT performance Risk 5 Inability to support the JRA to 1. Incomplete procurement plan 1. Inability to achieve the targets in the The SCM strategy has been presented to EMT and

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Risk No Categorisation Background Consequences Controls

achieve objectives due to 2. Inadequate and/or lack of user demand Procurement Plan the AFC, and a follow up review workshop is ineffective SCM function plans which are often times not 2. Significant under spending of budget scheduled before end of September. communicated timely with SCM/Finance 3. Poor service delivery 3. Poor implementation of SCM Procurement Plan by user departments (Erroneous/duplicated/overlapping specifications) 4. Lack of monitoring tools for tender administration (expiry and validity of tenders) 5. Lack of approved procurement strategy 6. Capacity gaps (skills versus numbers) Risk 6 Non-compliance to information 1. Maturity assessment not completed 1. The IT department will remain an Action plans are new, there is not progress to date. security governance and 2. Limited resources i.e. funding operational unit, and will lack to address management 3. Inadequate IT Structure strategic issues. 2. Non-compliance to regulatory requirement and best practise. 3. Failure to derive value from IT investments, manage IT risks and resources, alignment to business objectives, measure IT performance Risk 7 Theft and vandalism of the City 1. Rampant destruction of traffic signal 1. Financial losses 14 installations complete - original plan was 14 roads infrastructure and furniture and street infrastructure, 2. Vandalised infrastructure intersections for 2014-15 2. Vagrants living in an around bridges. 3. Dysfunctional traffic signals 3. Lack of By-laws enforcement by JMPD 4. Loss of life to road users and civilians The Critical Infrastructure Protection Workshop has 4. Theft, vandalism and accident 5. Unplanned expenditure been established damages to JRA roads related 6. Compromised safety on the roads infrastructure 7. Inefficient road network SCM is appointing CSA through on the City's 5. Inadequate police visibility database. Infrastructure Protection have developed 6. Low prosecution of culprits the work packages that will be given to CSA on 7. High value materials use on roads appointment. related infrastructure 8. Unregulated market demand for Finalising the Freight Strategy framework to be

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Risk No Categorisation Background Consequences Controls

materials used on roads related followed by advertising/awarding a contract for infrastructure Freight Infrastructure Management Strategy 9. Poor management of overloading on our roads Risk 8 Labour unrest due to 1. Lack of wider consultation by LLF 1. Limited service delivery Action plans are new and no progress to date. unsatisfactory labour relations conveners with regions 2. Intimidation of non-striking workers 2. Unresolved disputes between 3. Potential Injuries and fatalities management and the unions 4. Damage to private and public 3. Management of employee relations property 5. Unforeseen expenditure incurred Risk 9 Inconsistent application of project 1. Poor project management framework, 1.Poor or late delivery of strategic Action plans are new and no progress to date. governance framework and policy and methodology, culture, projects systems terminology 2. Financial loss 2. No company-wide communication and 3. Inadequate deliver of business value enforcement of defined framework, policy and methodology

Risk 10 Fraud and corruption 1. Collusion with suppliers 1. Financial losses Terms Of Reference for the Ethics Management 2. Non-adherence to SCM policies, 2. Vandalised infrastructure Forum have been approved. The forum has been regulations and directives 3. Dysfunctional traffic signals established, the Company Secretary has been 3. Inadequate enforcement of financial appointed as the Ethics Officer. Management is controls, monitoring and management waiting for Labour to provide names of union representatives. 4. Inadequate law enforcement

5. Street furniture in demand on the black market The SCM strategy embeds new processes and procedure that will come after the approval of the strategy in September 2015. Risk 11 Inability to attract, manage and 1. Non-competitive remuneration strategy, 1. Poor performance The report on the Job Profiling and Job Evaluation retain talent 2.Poor reputation due to low productivity, 2. Loss of critical skills project was presented to EMT and REMCO. The 3. Sub Optimal working environment, 3. Poor service delivery Skills Audit still in the process and REMCO requested an addition to the original scope of the 4. Staff inadequately skilled, 4. Low staff morale project; the project should therefore be finalized at 5. Skills mismatch, the end of September 2015. The various

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Risk No Categorisation Background Consequences Controls

6. Absence of succession and retention assessment questionnaires of the Skills Audit are strategy, being distributed to JRA employees for completion. 7. High Turnover rate, and 8. Lack of proper knowledge management. Risk 12 Lack of integrated asset life cycle 1. Capital and Operation expenditure 1. Poor roads, bridges, storm water and The 10 year roads plan has been finalised. planning and costing backlog, other roads related infrastructure, management 2. Inheritance of poor quality roads from 2. Hampered mobility, The implementation of year one of the plan 10 year the 3rd parties, 3. Deterioration of the City‟s road roads plan has been completed in 2014/15. 3. Illegal trenching, poor quality of infrastructure e.g. bridges, roads & reinstatements, Storm water. All new Capex projects are built with a stormwater 4. Inadequate road freight management, 4. Service delivery compromised. network as per the Stormwater Bylaw Policy. 5. Flooding & Storm water run-off, 6. Poor workmanship and the quality of Final draft of the design standard details to be material, submitted to EMT for approval and then to JRA 7. Poor asset life cycle management Board for Implementation. 8. Lack of by law enforcement, 9. Poor design standards adherence. Draft Freight Strategic Framework has been 10. Lack of coordinated roads developed. (The Freight Movement & Infrastructure infrastructure planning between, various Protection Support - the structure/unit was only departments and entities of the City, established in the 4th quarter due to funding 11. Inadequate budget to timeously constraints. It has been established through the implement VCI outcomes. redeployment of existing stuff.

Mobility & Freight: Traffic Signal Controllers (180 completed against target of 160) and Cable Replacement (100

completed, target was 90) Out-dated Intelligent Traffic Systems

(ITS) 331 intersections connected remotely against a

target of 330) Regional Operations:

10. Assets Life cycle planning 10 CCTV cameras installed at intersections against 11. Depreciation of Costing a target of 5)

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Risk No Categorisation Background Consequences Controls

New video wall to be installed 2015-16 (30 June 2016)

ATMS tender specifications - 80% complete (to be advertised in August 2015) - Delays in advertising of tender due to participation of international companies, from which information was received late. Contractor for installation to be appointed by 30 April 2016.

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Annexure B SCM progress

Supply Chain Management: Progress of capital projects in relation to tender processes

Project Description Tender Number BSC BEC BAC Letter of Award issued Brid 05- Le Roux Road Widening, Halfway House , Region A 051/2014 Approved Approved Approved Brid 05 - Naledi/Protea Bridge (between wards 20 and 14) New 092/2013 Approved Approved Approved 13/03/2014 Bridges (pedestrian and vehicle) Naledi D Regional Brid 10 - Bridge expansion joints, renewal bridges (pedestrian and 070/2013 Approved Approved Approved 31/10/2013 vehicles)Johannesburg F City wide Brid 11 -Bridge rehabilitation, renewal bridges (pedestrian and 070/2013 Approved Approved Approved 31/10/2013 vehicles) Johannesburg F City wide Brid 11 - Bridges, visual and detailed (Principal) inspections. New 072/2013 Approved Approved Approved 31/10/2013 bridges (pedestrian and vehicles) Johannesburg F City wide BRID 12 - Motorway Gantries. Renewal Roads: Rehabilitation 082/2014 Approved Approved Approved 15/12/2014 JOHANNESBURG F City Wide Brid 20 - Bridges, overtopping (flooding). Renewal bridges 103/2014 Approved Approved Approved 02/03/2015 (pedestrian and vehicles) Johannesburg F City wide 104/2014 105/2014 106/2014 Brid 20 - Conrad Drive Bridge, Blairgowrie. Renewal bridges 101/2014 Approved Approved Approved 11/03/2015 (pedestrian and vehicles) Craighall B Ward Brid 30 - Jabulani/Molapo Bridge. New bridges (pedestrian and 108/2014 Approved Approved Pending N/A vehicles) Jabulani D Ward MISCL - Pedestrian Bridge in Kaalfontein: New Bridges (pedestrian 080/2014 Approved Approved Approved 02/12/2014 and vehicles) Kaalfontein Ext 2, A Ward MISCL -Pedestrian Bridge in Klipspruit West. New Bridges 080/2014 Approved Approved Approved 02/12/2014 (pedestrian and vehicle) Klipspruit West D Ward

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Project Description Tender Number BSC BEC BAC Letter of Award issued MISCL -Pedestrian Bridge in Slovo Park (also Ashanti). New Bridges 080/2014 Approved Approved Approved 02/12/2014 (pedestrian and vehicle) Coronationville B Ward MISCL -Pedestrian Bridge in Diepsloot. New Bridges (pedestrian 080/2014 Approved Approved Approved 02/12/2014 and vehicle) Diepsloot Wes A Ward Catch 10 - Emergency stormwater improvement (multiyear): Protea 092/2014 Approved Approved Pending Glen Ext 1 -4 (Phase 1 - 5. new stormwater catchments Protea Glen D Ward Catch 200 - Braamfontein Spruit Catchment: Erosion Protection, N/A Approved Pending East of George Lea Park to Marie Street (173 m length). New stormwater catchments Braamfontein Werf Ext 1, E Ward Catch 200 - Braamfontein Spruit Catchment: Erosion Protection: N/A Pending Conrad Drive to Rustenburg Road new stormwater catchments Braamfontein Werf B Ward Catch 200 -Braamfontein Spruit catchment: upgrade to culvert N/A Pending Milpark renewal roads. Construction and upgrades Braamfontein Werf Ext 1, B Ward Catch 205 -Robinson Canal catchment structural improvement 109/2014 Approved Pending Robinson Canal Sub 4 renewal stormwater catchments Robin Acres F Ward Catch 205 -Robinson Canal catchment structural improvement 110/2014 Approved Pending Robinson Canal Sub 10 renewal stormwater catchments Robindale F Ward Catch 205- Robinson Canal catchment: structural improvement 109/2014 Approved Pending Robinson Canal Sub 3, Sub 6 and Sub 7 renewal stormwater catchments Robindale F Ward Catch 210 - Bosmont catchment: stormwater drainage : central 162/2014 Approved Pending areas new stormwater catchments Bosmont F Ward Catch 210 - Klein Juskei catchment(CBP) stormwater control: 166/2014 Approved Pending Willows development: Windsor new stormwater catchments:Jukskei Park B Ward Catch 210 - Klein Juskei catchment: Bond Stream Relief System, 128/2014 Approved Pending Ferndale, new stormwater catchments Ferndale B Ward

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Project Description Tender Number BSC BEC BAC Letter of Award issued Catch 212 - Bez Valley catchment: Recon Sub 6, Rehab Main, Sub 124/2014 Approved Pending 1 & 4. Renewal stormwater catchments Bezuidenhout Valley F Ward Catch 215 - Kliptown stormwater upgrade (Phase 10): Low level 033/2014 Approved Approved Approved 21/07/2014 Bridge, renewal stormwater management projects Klipspruit West Ext 1, D Ward Catch 220 - Juskei catchment: Fourways Mall Dam and Downstream 059/2014 Pending Works. New stormwater catchments Fourways Ext 16, A Ward Catch 240 - Klipriver catchment: Upgrading of stormwater drainage 133/2014 Approved Pending system in Mogaseview renewal stormwater catchment Klipspruit D Ward Conv - Conversion of Open Drains to underground /covered drains 084/2013 Approved Approved Approved 30/06/2014 in Braamfisherville. Renewal stormwater management projects Braamfisherville C Ward Conv- Conversion of Open Drains to underground/covered drains in 116/2014 Approved Pending Ivory Park. Renewal stormwater management projects Ivory Park Ext 7, A Ward Conv - Conversion of Open Drains to underground/covered drains in 114/2014 Approved Pending Orange Farm. Renewal stormwater management projects Orange Farm G Ward MISCL - Emergency stormwater interventions. Renewal stormwater 165/2014 Approved Pending management projects Johannesburg F City Wide MISC L - Emergency, critical and urgent depot stormwater 111/2014 Approved Pending improvements. New stormwater management projects Johannesburg F City Wide REHAB- Rehabilitation of Open Channels City Wide. Renewal 126/2014 Approved Pending Stormwater Management Projects Johannesburg F City Wide CS - Capital equipment. New plant and equipment Johannesburg F 118/2014 Approved Pending City Wide CS - Construction of Archiving facility. New operational Capex 137/2014 Approved Pending Johannesburg F City Wide CS - Depot upgrading and standardisation. Renewal Operational 107/2014 Approved Pending

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Project Description Tender Number BSC BEC BAC Letter of Award issued Capex Johannesburg F City Wide CS - IT Security. New computer software Johannesburg F City Wide N/A N/A N/A CS - Operational Capex. Renewal Operational Capex Johannesburg 143/2014 Approved Pending F City Wide CS - Upgrade of Head Office Facilities. Renewal Building alterations 107/2014 Approved Pending Johannesburg F City Wide IT - ERP Migration. New computer software Johannesburg F City N/A N/A N/A Wide MISCL - Integrated Roads and Stormwater Master planning. New 052/2013 Approved Approved Approved 31/10/2013 stormwater management projects Johannesburg F City Wide MISCL - Investigate and Design Future Schemes. New Operational N/A N/A N/A Capex Johannesburg F City Wide MISCL - Environmental compliance. New Operational Capex 080/2013 Approved Approved Approved 06/08/2014 Johannesburg F City Wide RAMS - Stormwater Asset Monitoring. New Computer Software 074/2013 Approved Approved Approved 04/09/2014 Johannesburg F City Wide RAMS - GIS Improvement. New Computer Software Johannesburg 071/2013 Approved Approved Approved 18/12/2013 F City Wide MISCL - Dam Safety Rehabilitation. Renewal stormwater 115/2015 Approved Pending Approved management projects Johannesburg F City Wide MISCL - Gravel Roads: Agricultural Holdings. Renewal Gravel Road 100/2013 Approved Approved Approved 12/06/2014 Johannesburg F Regional MISCL - Gravel Roads: Braamfisherville. New Roads: Construction 066/2014 Approved Approved Approved 27/10/2014 and upgrades Braamfisherville D Ward MISCL - Gravel Roads: Diepsloot. New Roads: Construction and 067/2014 Approved Approved Approved 27/10/2014 upgrades Diepsloot West Ext3, A Ward MISCL - Gravel Roads: Doornkop/Thulani. New Roads: Construction 071/2014 Approved Approved Pending and upgrades Doornkop D Ward MISCL - Gravel Roads: Drieziek. New roads: Construction and 146/2014 Approved Approved Pending

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Project Description Tender Number BSC BEC BAC Letter of Award issued upgrades Drieziek G Ward MISCL - Gravel Roads: Ivory Park. New Gravel Road Ivory Park 068/2014 Approved Approved Approved 27/10/2014 Ext9, Award MISCL -Gravel Roads: Lawley. New roads: Construction and 058/2014 Approved Approved Pending upgrades Lawley Ext1, G Ward MISCL - Gravel Roads: Orange Farm. New roads: Construction and 069/2014 Approved Approved Approved 27/10/2014 upgrades Orange Farm G Ward MISCL - Gravel Roads: Protea South. New Roads: Construction and 157/2014 Approved Approved Pending upgrades Protea South Ext1, G Ward MISCL - Gravel Roads: Tshepisong. New roads: Construction and 070/2014 Approved Approved Approved 27/10/2014 upgrades Tshepisong C Ward MISCL - Inner City Improvement: Renewal roads: Construction and 075/2014 Approved Approved Approved 02/12/2014 upgrades Johannesburg F Regional REHAB- Road Rehabilitation and Reconstruction Programme. 147/2014 Approved Approved Approved 16/04/2015 Construction and upgrades Johannesburg F City Wide 148/2014 164/2014 163/2014 RESUF-Resurfacing of M1 Motorway, Melrose F City Wide Sanral Approved Approved Approved RESUF-Resurfacing of M2 Motorway, Joburg F City Wide Sanral Approved Approved Approved RESURF - Resurfacing of Roads. Renewal Roads: Rehabilitation 001/2014 Approved Approved Approved 21/08/2014 Johannesburg F City Wide RESUF-Resurfacing of Soweto Highway, Orlando D Sanral Approved Approved Approved RNP003 - Westlake Road Extension New Roads: Construction and upgrades Rand Leases Ext1, C Regional RNP004 - James Street Extension. New Roads: Construction and 100/2014 Approved Approved Approved 11/03/2015 upgrades Ennerdale, G Regional RNP005 - Spencer Road New Link New Roads: Construction and 099/2014 Approved Approved Approved 11/03/2015 upgrades Fleurhof C Regional RNP017 - Ballyclaire Drive Widening Renewal Roads: Construction 097/2014 Approved Approved Approved 11/03/2015

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Project Description Tender Number BSC BEC BAC Letter of Award issued and upgrades River Club Ext 2, E Regional RNP021 - Outspan Road Upgrading Renewal Roads: Construction 098/2014 Approved Approved Approved 11/03/2015 and upgrades Littlefillan E Ward Turffontein Corridor (JRA) Renewal Corridors of Freedom 052/2013 Approved Approved Approved 31/10/2013 Intervention Turffontein F Regional MOB -Alternative Energy: Alternative Power Sources (LED). New 004/2013 Approved Approved Approved 01/08/2013 Mobility: Intelligent Transportation System & Networks Johannesburg F City Wide MOB -Alternative Energy: Alternative Power Sources (UPS). New 095/2014 Approved Pending Mobility: Intelligent Transportation System & Networks Johannesburg F City Wide MOB - CCTV Cameras. New Mobility: Intelligent Transportation 072/2014 Approved Approved Approved 14/05/2014 System & Networks Johannesburg F City Wide MOB- City Deep Freight hud, Renewable Roads construction Sanral Approved Approved Approved MOB - Complete Streets (Streets Alive). New Roads: Construction 036/2014 Approved Approved Approved 20/10/2014 and upgrades Johannesburg F City Wide MOB - Geometric Improvements. Renewal Mobility: Intelligent 102/2014 Approved Approved Approved 02/03/2015 Transportation & System Networks Johannesburg F City Wide MOB - Guardrails. Renewal Roads: Construction and upgrades 062/2014 Approved Approved Approved 20/10/2014 Johannesburg F Regional MOB - Installation of New Warranted Traffic Signals in All Wards 006/2014 Approved Approved Approved 02/07/2014 City Wide. New Mobility: Intelligent Transportation System & Networks Johannesburg F City Wide MOB - Intelligent Transport Systems (ITS) projects. New Mobility: Sanral Approved Approved Approved Intelligent Transportation Systems & Networks Johannesburg F City Wide MOB - M2 Motorway at Main Reef Road Intersection. New Roads: 084/2014 Approved Approved Approved 18/12/2014 Construction and upgrades Crown Ext2, E Regional MOB – Re-cabling of Old Redundant Cables at Signalised Traffic 006/2014 Approved Approved Approved 02/07/2014 Intersections. Renewal Mobility: Intelligent Transportation System & Networks Johannesburg F City Wide

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Project Description Tender Number BSC BEC BAC Letter of Award issued MOB - Remote Monitoring. Urban Traffic Control (UTC). New 035/2014 Approved Approved Approved 21/07/2014 Mobility: Intelligent Transportation System & Networks Johannesburg F City Wide MOB- SARTSM: Upgrade of Existing Signalised Intersections. 006/2014 Approved Approved Approved 02/07/2014 Renewal Mobility: Intelligent Transportation System & Networks Johannesburg F City Wide MOB - Traffic Management Centre. Renewal Mobility: Intelligent 011/2014 Approved Approved Approved 28/05/2014 Transportation System & Networks Johannesburg F City Wide MOB - Traffic Signal Adaptive Control. New Mobility: Intelligent 006/2014 Approved Approved Approved 02/07/2014 Transportation System & Networks Johannesburg F City Wide MOB - Upgrading Controllers and Phasing. Renewal Mobility: 101/2013 Approved Approved Approved 02/04/2014 Intelligent Transportation System & Networks Johannesburg F Regional

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Annexure C CAPEX Expenditure

JRA CAPEX Expenditure Report Summary: as at 30 September 2015

External Finance Funding (EFF) Project Project Description Revised Budget Actual Accruals Open Total Spend / Budget Variance Number Expenditure Commitments Committed

60002016 Gravel rds Agricultural 5 000 000,00 - 5 000 000,00 60142016 Bridge Upgrade Ivory Park 1 000 000,00 - 1 000 000,00 60152016 Bridge Upgrade far East Bank 1 000 000,00 - 1 000 000,00 60162016 Le Roux Widening 8 000 000,00 - 8 000 000,00 60182016 Bridge Rehabilitation 12 500 000,00 4 770 849,62 2 242 040,00 7 012 889,62 5 487 110,38 60192016 Bridges Visual Inspection 5 000 000,00 - 5 000 000,00 60202016 Motorway Gantries 5 000 000,00 4 955 787,26 4 955 787,26 44 212,74 60212016 Bridges Overtopping 80 000 000,00 4 367 919,00 4 367 919,00 75 632 081,00 60222016 Conrad Drive Bridge 3 000 000,00 54 284,87 54 284,87 2 945 715,13 60232016 Jabulani - Molapo Bridge 2 500 000,00 - 2 500 000,00 60282016 Pedestrian Bridge Diepsloot 1 000 000,00 - 1 000 000,00 60302016 Braam Spruit Morningside 1 000 000,00 - 1 000 000,00 60312016 Braam Spruit George Lea Park 1 500 000,00 - 1 500 000,00 60322016 Braam Spruit Conrad Road 2 500 000,00 - 2 500 000,00 60332016 Robinson Canal Sub 4 2 000 000,00 - 2 000 000,00 60342016 Robinson Canal Sub 10 2 000 000,00 - 2 000 000,00 60352016 Robinson Canal Sub3,6,7 2 000 000,00 - 2 000 000,00 60362016 Bosmont Stormwater 5 000 000,00 - 5 000 000,00 60372016 Willows Development 5 000 000,00 - 5 000 000,00 60382016 Bond Street Ferndale 5 000 000,00 - 5 000 000,00 60392016 Bez Valley Catchment 5 000 000,00 - 5 000 000,00 60402016 Kliptown Low Level Bridge 7 000 000,00 - 7 000 000,00 60412016 Fourways Mall & Dam 1 000 000,00 - 1 000 000,00 60422016 Stormwater Mogaseview 1 000 000,00 - 1 000 000,00

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Project Project Description Revised Budget Actual Accruals Open Total Spend / Budget Variance Number Expenditure Commitments Committed

60462016 New Plant & Equipment 5 000 000,00 76 300,00 4 861 637,00 4 937 937,00 62 063,00 60472016 Asphalt Plant Upgrade 6 000 000,00 1 630 050,00 1 630 050,00 4 369 950,00 60482016 Archiving Facility 10 000 000,00 25 770,00 25 770,00 9 974 230,00 60492016 Depot Upgrading 10 000 000,00 101 460,50 8 346 399,36 8 447 859,86 1 552 140,14 60502016 New Computer Software 1 000 000,00 - 1 000 000,00 60512016 Operational Capex 10 000 000,00 333 313,18 1 970 611,27 2 303 924,45 7 696 075,55 60522016 Upgrading Head Office 10 000 000,00 985 965,00 985 965,00 9 014 035,00 60532016 ERP Migration New Computer Sof 20 000 000,00 12 468 197,74 12 468 197,74 7 531 802,26 60542016 Dam safety Rehab 20 000 000,00 1 571 235,65 1 571 235,65 18 428 764,35 60552016 Emergency SW Intervention 5 000 000,00 - 5 000 000,00 60562016 Environmental Compliance 1 500 000,00 - 1 500 000,00 60572016 Stormwater Masterplanning 10 000 000,00 - 10 000 000,00 60582016 Design Future Schemes 10 000 000,00 972 140,75 972 140,75 9 027 859,25 60592016 Emergency Critical Urgent SW 40 000 000,00 2 021 958,63 1 107 931,79 3 129 890,42 36 870 109,58 60602016 CIty Deep Freight Hub (Renewal 30 000 000,00 - 30 000 000,00 60612016 Complete Streets 30 000 000,00 1 100 369,33 54 169,07 1 154 538,40 28 845 461,60 60622016 M2 Motorw Main Reef Intersection 13 000 000,00 - 13 000 000,00 60632016 Geometric Improvements 10 000 000,00 30 673,13 105 879,00 136 552,13 9 863 447,87 60642016 Guardrails 10 000 000,00 - 10 000 000,00 60652016 Alternative Power LED 5 000 000,00 455 734,86 455 734,86 4 544 265,14 60662016 Alternative power UPS 13 000 000,00 3 016 440,00 3 016 440,00 9 983 560,00 60672016 CCTV Cameras 2 500 000,00 60 000,00 60 000,00 2 440 000,00 60682016 New warranted Traffic Signals 5 000 000,00 260 235,70 94 979,97 355 215,67 4 644 784,33 60692016 Intelligent Transport System 11 941 000,00 11 649 756,00 11 649 756,00 291 244,00 60702016 ITS - CRR 10 059 000,00 9 813 659,00 9 813 659,00 245 341,00 60712016 Recabling Intersections 15 000 000,00 5 060 518,40 5 060 518,40 9 939 481,60 60722016 Remote Monitpring 3 000 000,00 - 3 000 000,00

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Project Project Description Revised Budget Actual Accruals Open Total Spend / Budget Variance Number Expenditure Commitments Committed

60732016 SARTSM 2 000 000,00 764 751,50 300 000,00 1 064 751,50 935 248,50 60742016 Traffic management Centre 2 300 000,00 - 2 300 000,00 60752016 Traffic Signal Adaptive Contro 5 000 000,00 161 321,87 90 743,68 252 065,55 4 747 934,45 60762016 Upgrade Controllers & Phasing 5 000 000,00 1 648 783,48 131 263,09 1 780 046,57 3 219 953,43 60772016 GIS Improvement 20 000 000,00 2 479 475,00 2 479 475,00 17 520 525,00 60782016 Gis Improvement 5 000 000,00 - 5 000 000,00 60792016 SW Asset Monitoring 5 000 000,00 - 5 000 000,00 60802016 Rehab Open Drains City Wide 10 000 000,00 - 10 000 000,00 60812016 Road Rehab & Reconstruction 140 000 000,00 2 562 499,34 923 279,78 3 485 779,12 136 514 220,88 60822016 Resurfacing M1 Motorway 50 000 000,00 988 274,50 988 274,50 49 011 725,50 60832016 Resurfacing M2 Motorway 10 000 000,00 - 10 000 000,00 60842016 Resurfacing Soweto Highway 5 000 000,00 - 5 000 000,00 60852016 Resurfacing of Roads 221 941 000,00 26 582 167,12 4 462 900,20 1 931 364,70 32 976 432,02 188 964 567,98 60862016 Louis Botha Corridor 10 000 000,00 - 10 000 000,00 60872016 Perth Empire Corridor 10 000 000,00 - 10 000 000,00 60882016 Westlake Road extension 20 000 000,00 - 20 000 000,00 60892016 James Street Extension 4 000 000,00 - 4 000 000,00 60902016 Spencer Road New Link 3 000 000,00 - 3 000 000,00 60912016 Jan Smuts Dualling 3 000 000,00 - 3 000 000,00 60922016 Ballyclare Drive Widening 2 000 000,00 - 2 000 000,00 60932016 Outspan Road Upgrading 2 000 000,00 - 2 000 000,00 60942016 Turffontein Corridor 10 000 000,00 - 10 000 000,00 60952016 Richards Drive Upgrade 2 000 000,00 - 2 000 000,00 60962016 Crownwood Road Upgrade 3 000 000,00 - 3 000 000,00 60982016 Thulani to Braamfscherville 3 000 000,00 3 000 000,00 60972016 Katherine Road Upgrade 2 000 000,00 - 2 000 000,00 1 036 241 000,00 61 320 053,69 8 790 320,84 57 482 715,81 127 593 090,34 908 647 909,66

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USDG Projects

Project Project Description Revised Budget Actual Accruals Open Total Spend / Budget Variance Number Expenditure Commitments Committed

60012016 Gravel Rds Bramfischer 30 000 000,00 3 406 464,00 3 406 464,00 26 593 536,00 60022016 Gravel Rds Diepsloot 37 000 000,00 2 171 394,91 239 981,48 2 411 376,39 34 588 623,61 60032016 Gravel Rds Thulani-Doornkop 23 000 000,00 - 23 000 000,00 60042016 Gravel Roads Drieziek 25 000 000,00 - 25 000 000,00 60052016 Gravel Roads Ivory Park 37 000 000,00 409 317,36 6 371 582,23 6 780 899,59 30 219 100,41 60062016 Gravel Roads Lawley 35 000 000,00 4 760 747,04 1 456 981,65 6 217 728,69 28 782 271,31 60072016 Gravel Roads Mayibuye 15 000 000,00 - 15 000 000,00 60082016 Gravel Roads Orange Farm 38 000 000,00 4 327 767,16 4 327 767,16 33 672 232,84 60092016 Gravel Roads Protea South 20 000 000,00 1 217 354,25 2 779 764,88 3 997 119,13 16 002 880,87 60102016 Gravel Roads Tshepisong 22 000 000,00 1 549 791,05 3 980 799,83 5 530 590,88 16 469 409,12 60112016 Gravel Roads Kaalfontein 3 000 000,00 - 3 000 000,00 60122016 Gravel Roads Poortje 3 000 000,00 - 3 000 000,00 60132016 Gravel Roads Slovoville 3 000 000,00 - 3 000 000,00 60172016 Naledi-Protea Bridge 18 500 000,00 3 746 995,41 3 746 995,41 14 753 004,59 60242016 Jabulan / Molapo Brdge 2 500 000,00 - 2 500 000,00 60252016 Pedestrian Bridge Kaalfontein 1 000 000,00 - 1 000 000,00 60262016 Pedestrian Bridge Klipspruit 6 000 000,00 - 6 000 000,00 60272016 Pedestrian Bridge Slovo Park 5 000 000,00 - 5 000 000,00 60292016 Emergency SW Protea Glen 15 000 000,00 - 15 000 000,00 60432016 Conver Open Drains Bramfischer 10 000 000,00 4 366 251,27 4 366 251,27 5 633 748,73 60442016 Conver Open Drains Ivory Park 10 000 000,00 132 890,64 132 890,64 9 867 109,36 60452016 Conver Open Drains Orange Farm 20 000 000,00 108 818,72 108 818,72 19 891 181,28 379 000 000,00 26 197 791,81 14 829 110,07 - 41 026 901,88 337 973 098,12

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Summary

Funding Revised Budget Actual Expenditure Accruals Open Commitments Total Spend / Budget Variance Committed

EFF 1 036 241 000,00 61 320 053,69 8 790 320,84 57 482 715,81 127 593 090,34 908 647 909,66

USDG 379 000 000,00 26 197 791,81 14 829 110,07 - 41 026 901,88 337 973 098,12

Total 1 415 241 000,00 87 517 845,50 29 658 220,14 57 482 715,81 168 619 992,22 1 246 621 007,78

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Annexure D Company JRA – Q1 Company Performance – 2015-16 Performance

Programme 1: City Priority Programmes (A) Customer Charter

Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

1 Reinstatements % of Reinstatement of OPEX 100% % 100% Q1 Target not achieved Region A (63.33%) (cont) reported road excavations Of the reported 292 Region B (0.00%) Region B has a huge backlog that / trenches completed by reinstatements, Region C (88.89%) teams are currently clearing. There stakeholders and 192were completed Region D (0.00%) are a number of supervisors that reinstated within 3 days within 3 days (65.75% Region E (32.14%) must be replaced resulting in against the target of Region F (78.95%) general workers having to act in the 100%) Region G (80%). higher position. This is depleting current capacity causing Region D experienced a performance challenges. challenge for 5 months of teams refusing to operate The issue of small plant operator in small plant due to none Region D is currently being resolved payment of salary for small with the assistance of HCM. It is plant operators. As a result envisaged the team will start this activity could not be working from Q2 and attend to the performed as it requires a lot backlog created. The recruitment of compaction. In addition, for supervisors in Region B is there was shortage of currently underway. Interviews are bitumen for over 4 weeks. scheduled to do replacements. There are options of overtime to address the backlog once the placements are done, and workers are back to their posts.

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Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

2 Pothole repairs % of Potholes repaired OPEX 100% % 100% Q1 Target not achieved Region A (80%) With capacity challenges the teams within Region B (53.09%) require double time to address 3-days Of the reported 1 574 Region C (90.68%) service requests therefore regions potholes, 1 262 were Region D (56.35%) are scheduling overtime. In completed within 3 days Region E (73.33%) addition , it is expected that the (80.62% against the Region F (92.31%) implementation of Jozi@Work will target of 100%) Region G (98.67%) provide the necessary assistance to improve performance. Region B must replace a total of 11 supervisors. The reasons stated above ( Reinstatements ) still apply for potholes

3 Traffic Signal % Traffic Signals repaired OPEX 100% % 100% Target was not achieved. Due to staff resource The September 2015 data will be maintenance within 24 hrs constraints, only records for captured as a matter of urgency. Of the reported 402 July & August 2015 were The report will be re-run prior to faulty Traffic Signals, 299 captured. September figures submission of the final Q1 report were repaired within 24 could not be captured , hrs. (74,15% against a which was exacerbated by target of 100%) short timeframes for data The average resolution submission time to repair reported traffic signals was 27.07 hrs (against a standard of 24 hours) 4 Incorrect Street % of incorrect street name OPEX 100% % 100% Target achieved Name spelling spelling corrected within 7 days During the quarter NO (0) incorrect spelling of street names was reported.

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Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

5 Missing Manhole % of missing Manhole OPEX 100% % 100% Q1 Target not achieved Region A (0%) TheJRA regions w ill plan with the Covers covers replaced in 3 days Region B (0%) supplier in order to address the replacement Of the reported 46 Region C (100%) backlog of service requests caused missing manhole covers, Region D (0%) by the non availability of manhole 2 was completed within Region E (0%) covers. 3 days (4.35% against Region F (0%) the target) Region G (0%)

The contract for the provision of manhole covers was awarded late during Q1 . The supplier was appointed in September 2015. 6 Clearing of % reported blocked storm OPEX 100% 100% Q1 Target not achieved Region A (0%) Currently IT is resolving the blocked storm water drains (Ki's) cleared Region B (50% & 76.19%) timesheet capturing problem. The water drains within 3 days from time of Of the reported 983 Region C (90.32%) region is going to increase the team logged call blocked ki's, 608 were Region D (48.26%) from o ne (1) to two (2) teams. And completed within 3 days Region E (38.10%) place some of the work onto (61.85% against the Region F (94.66%) Jozi@Work programme. target of 100%) Region G (90%)

Region A, there was late submission of timesheets as a result these were not captured on time onto Hansen system. There is only one team that can perform this activity. 7 Road marking % reported road marking OPEX 100% % 100% Target not achieved In Region B and F, there is a Material was delivered in the last lanes / signs lanes / signs repaired back log that teams are month of the quarter (Mid - repaired within 3 days from time of Of the reported 2048 currently clearing. A September) and the teams are logged call; faded road marking / shortage of paint and related catching up on the backlog. damaged signs, 862 equipment also exists. were completed within 3 days (42,08 % against the target of 100%)

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(B) Corridors of Freedom

Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule) Budget Stream Budget (Q1)

8 CATCH - Louis Botha No. of stormwater 3 No 0 Target achieved. Corridor upgrades undertaken Stormwater Progress

Masterplan and Specification Upgrading Renewal preparation for the CORRIDORS OF CAPEX appointment of FREEDOM Professional Services on track. 9 CATCH - Empire No. of stormwater 3 No 0 Target achieved. Perth Corridor upgrades undertaken Stormwater Progress:

Masterplan and Specification Upgrading Renewal preparation for the CORRIDORS OF CAPEX appointment of FREEDOM Professional Services on track . 10 CATCH - Turffontein No. of stormwater 3 No 0 Target achieved Corridor upgrades undertaken Stormwater Progress:

Masterplan and Specification for the Upgrading Renewal appointment of

CORRIDORS OF CAPEX Professional Service FREEDOM approved by BSC on the 18 September 2015. Project is on track

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(C) Community Based Projects (CBP)

Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule) Budget Stream Budget (Q1)

11 CBP - Gravel Roads % Implementation of 1 % 0 Q1 target was met.

rehabilitation + identified gravel roads 0% was achieved stabilization resurface and stabilise against a target of 0%.

CAPEX

(gravel roads –

- Gravelling) Project progress:

City Investigations for scope of work in progress. 12 CBP - Resurfacing Km of road Resurfacing 1.5km Km 0 Q1 target was met. of Nanyuki Rd from 0% was achieved

Sunninghill Hospital to against a target of 0%. Malindi Rd

CAPEX

Project progress: - Inspections for

City City treatment was concluded during September 2015 13 CBP - Resurfacing Km of Tarring and 0 Km Km 0 Q1 target was met.

completion of tarring of 0 km was achieved Bulelwa Makomane str, against a target of 0 km.

CAPEX

tarring of Phakwe and Xinimbela streets - Project progress:

City City Investigation for scope in progress. 14 CBP - Road Safety % Street calming 1 % 0 Q1 target was met.

measures in Ebony Park 0 km was achieved Primary against a target of 0 km.

CAPEX

- Project progress:

City City Investigation for scope of work in progress.

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Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule) Budget Stream Budget (Q1)

15 CBP - New Traffic Traffic Signals installed 1 x No 0 Target achieved Signals in Protea Glen on the Intersection Major Impala An application for power intersection and way leaves were

CAPEX

submitted to Eskom and

- JRA (Region D)

City City respectively. The project is on track

16 CBP - New Traffic Traffic Signal installed in 1 x No 0 Target achieved Signals Glen Ridge Ext 16 on Intersection

Randfontein Road An application for power Intersection and way leaves were

CAPEX

- submitted to Eskom and JRA (Region D) City City respectively. The project is on track 17 CBP - Road % Upgrading of 1 % 0 Q1 target was achieved. Rehabilitation and Blandford Rd between upgrading Hyperion and Project progress:

CAPEX

Witkoppen Rd The tender process to

- commenced in Q1

City City

18 CBP - Community Upgrade of Glenhazel Preliminary PDR Scoping for Q1 target was achieved. Parks upgrading Park Design Report consultant (City Parks + JRA) appointment The scoping for

CAPEX

consultant appointment

- was completed.

City City

19 CBP - Pedestrian Foot bridges Preliminary PDR Scoping for Q1 target was achieved. Foot Bridge (City Parks + JRA) Design Report consultant appointment The scoping for

CAPEX

consultant appointment

- was completed.

City City

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Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule) Budget Stream Budget (Q1)

20 CBP - Stormwater Gabions Preliminary PDR Scoping for Q1 target was achieved. management Design Report consultant

CAPEX

appointment The scoping for - consultant appointment

City City was completed. 21 CBP - Pedestrian Building of a small Preliminary PDR Scoping for Q1 target was not Foot Bridge bridge Design Report consultant achieved.

appointment The project scoping was

CAPEX

not completed. - Design office and

City City Planning Department are assessing what is required 22 CBP - Road % Roads Maintenance 100% % 50% Q1 target was achieved.

Rehabilitation and Implementation upgrading Project progress:

CAPEX

The region is executing - work as per the

City City maintenance programme. 23 CBP - Road % Dzadza Projects Road 100% % 50% Q1 target was achieved.

Rehabilitation and Maintenance upgrading implementation Project progress:

CAPEX

The region is executing - work as per the

City City maintenance programme..

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Programme 2 – Roads Management

(A) Roads - Renewal (Improvements / Upgrades)

Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind

Budget Stream Budget schedule) (Q1)

24 MOB - Guardrails. Km of Guardrail Renewal 16 km Km 0 km Q1 target was met. Renewal Roads: Roads Construction and

Upgrades Project progress: JOHANNESBURG F Development of the

Regional CAPEX specification in progress. (Installation/replacement of guardrails along main roads.) 25 BRID 05 - Le Roux % implementation of 100% % 0% Q1 target was met. Avenue Widening. New preparation for road Roads: Construction and construction (Le Roux Ave Upgrades HALFWAY widening)as per project Project progress: HOUSE ESTATE A plan The construction

Regional tender served at Bid Evaluation and

(Widening of Le Roux CAPEX Adjudication Ave between Committee (BEC and Bekker/Janadel Street BAC) during the and Old Pretoria Main as quarter. a result of the doubling of Le Roux Ave Bridge and traffic congestion.)

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Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind

Budget Stream Budget schedule) (Q1)

26 MOB - City Deep Freight % of road network 100% % 0% Q1 target was met. Hub. Renewal Roads: upgraded as per project Construction and plan:- Project progress: Upgrades CITY DEEP F (1 ) Rosherville Bridge and The DDR's for City Wide Road (DDR); Bonsmara Road / (2) Bonsmara Road Rosherville Road (Road and traffic (Construction, road); Designs approved by management (3) Cleveland Bridge JRA. interventions in the City (DDR) ; The Cleveland Road Deep/Kaserne area to CAPEX DDR's are in progress. solve mobility issues in this major freight traffic The construction hub.) tender closed in 2014/ 2015 financial year and at evaluation stage for Rosherville Road and Bonsmara Road. 27 MOB - Complete Streets Km road retrofit projects 0.67 km Km 0 km Q1 target was met (Streets Alive). New completed as per annual Cycle Lanes;

Roads: Construction and project plan in Soweto, 0.67 Km Project progress: Upgrades Diepsloot, Ivory Park, Walkways The construction

JOHANNESBURG F City Orange Farm, Bram CAPEX tender is at evaluation Wide Fischerville, Alexandra stage. and Doornkop (multiyear project)

(B) Roads - Reconstruction / Rehabilitation

Kpi No Project Key Performance Indicators Annual Measurement Target Progress Comments Measures taken to improve Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

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Kpi No Project Key Performance Indicators Annual Measurement Target Progress Comments Measures taken to improve Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

28 REHAB - Road Km of road rehabilitated 16.3 km Km 0 km Q1 target was met Rehabilitation and Reconstruction Programme. Project progress: Renewal Roads: Phase I: Construction in Construction and progress in all 7 region. Upgrades Phase II: Region A to F JOHANNESBURG F tenders are at City Wide evaluation stage. Region G contractor has been

(Roads in very CAPEX appointed. poor condition all Region G contractor was over the City that appointed and the require urgent inception meeting was intervention held in September 2015. according to PMS to improve VCI (Visual Condition Index). )

(C) Roads – Resurfacing

Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

29 RESUR - Km of roads resurfaced 506.96 Lane Lane Km 76.04 Lane Target was achieved Resurfacing of (CAPEX) city-wide to Km Km Roads - City Wide. improve the visual A total of 110.08 Lane Renewal of Roads: condition index Km was resurfaced

Rehabilitation CAPEX against a target of 76.04 JOHANNESBURG Lane Km. City Wide

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Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

30 Resurfacing, % of roads resurfaced (M1 100% % 0% Target was achieved Drainage and Motorway) resurfacing of 0 % was achieved miscellaneous roads city-wide to improve against a target of 0 %.

Bridge upgrade the visual condition index (M1 Double according to project plan Project progress: Decker Bridge) Projects implemented in

CAPEX a) Upgrade of M1 to GFIP partnership with (Gauteng Freeway SANRAL. Consultant's Improvement Project) tender closed and at standards (10%) evaluation stage. 31 (b) Repairs of Double Target was achieved Decker Bridge (50%) Project progress: The construction tender CAPEX closed in June 2015 and at evaluation.

32 (c.) Repairs of Oxford Rd & Target was achieved Federation Bridges (40%)

Project progress: The construction tender for Oxford Road and

CAPEX Federation Road bridge closed in August 2015 by SANRAL.

(D) Roads – Routine Maintenance

Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

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Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

33 According to PMS Light roads rehabilitation Deep Deep Patching Deep Target partially achieved Performance is due to Milling machine still to be procured light road (as per VCA/VCI) as per Patching (m2); Skin Patching Asphalt plant not in so as to start the activity, the rehabilitation Implementation Plan 34000 m2; Patching (m2); 6800 m2; Deep Patching: 7843 m2 operation due to bitumen procurement will occur in 2015/16 work is urgently :- Deep Patching (m2); Skin Skin Patching Milling (L/Km): Skin Patching against target of 6800 shortage for 6 weeks. which means will still meet the required to Patching (m2); Milling 22000 m2; Crack Sealing 4400 m2; m2 (>100%); target pending the arrival of the prolong the life of (L/Km): Crack Sealing (Kg) Milling 10 (Kg) Milling 2 Skin Patching: 1407 m2 milling machine. roads in poor L/Km: L/Km: against a target of 4400

condition Crack Sealing Crack Sealing m2 (32%);

between 5 to 6 OPEX 52800 Kg 13200 Kg Milling: 0 L/Km against a years depending target of 2 L/km (0%): on type of surface Crack Sealing: 6945 Kg treatment. It against a target of includes all 13,200 kg (52.6 %) regions plus access to motorways. 34 Repair Footways, .% compliance with 90% % 90% Target was not achieved Resource capacity at depot With the implementation of Kerbs , Gutters, Implementation Plan staff level (especially general Jozi@Work, it is expected that this Patching, (Repair Footways, Kerbs , During the quarter, the workers) performance will improve

Guardrails, Gutters, Patching, JRA achieved 64.52% of

Vegetation Guardrails, Vegetation OPEX the implementation plan Control Control ) (Act 2.34) against a target of 90% (71.7%)

(E) Gravel Roads – Routine Maintenance

Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

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Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

35 Gravel Road Length of gravel road 2000 Lane Km 600 Target was nor achieved > In some Regions (Region The Regionals are currently trying Maintenance maintained (Lane km) A), there are existing to improve their planning on this blading, re-graveling, rip During the quarter 292 logistical issue where areas activity. This will enable depots to and re-shaping Lane Km of gravel road to be serviced are too far recover on lost times in order to was completed against a apart and the planned achieve Implementation plan target of 600 Lane Km schedules are difficult to targets. achieve. Region A : 113 Lane Km > It is also difficult to stick to against 62 Lane Km; the prioritised schedule as Region B: No gravel the Regional Director's

Roads in Region; office is exerting pressure to

Region C: 33,5 Lane Km the Regions to attend to OPEX against 77 Lane Km; stakeholder requests prior to Region D: 14,5 Lane Km scheduled work; against 13.72 Lane Km; > During the seasonal Region E: 0 Lane Km changes (winter), it is against target of 0.65 difficult to capacitate the Lane Km; required team sizes as a Region F: No gravel results of absenteeism Roads in Region; (sickness). Region G: 131 lane km against 165 Lane Km

(F) Gravel Roads – Gravel Roads to Surfaced Roads

Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

36 Upgrade: Gravel Km of gravel roads 7.1 Km km 0 km Target was met. Roads to surfaced surfaced : BRAM : BRAM FISCHERVILLE Project progress:

CAPEX FISCHERVILLE Construction is in

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Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

progress and is 47% complete. The new consultant’s tender was cancelled and awaiting Supply Chain to re-advertise the tender. 37 Upgrade: Gravel Km of gravel roads 8 km km 0 km Target was met. Roads to surfaced surfaced : ORANGE FARM : ORANGE FARM Project progress: Construction is in

CAPEX progress and is 51% complete. The new consultant’s is proceeding with designs. 38 Upgrade: Gravel Km of gravel roads 5.3 km km 0 km Target was met. Roads to surfaced surfaced: DIEPSLOOT : DIEPSLOOT WEST WEST EXT.3 EXT.3 Project progress: Construction is in

CAPEX progress and is 85% complete. The new consultant’s is proceeding with designs. 39 Upgrade: Gravel Km of gravel roads 3 km km 0 km Target was met. Roads to surfaced surfaced ; DOORNKOP : Doornkop/Thulani; Project progress:

DOORNKOP It also The contractor was includes required appointed, construction interventions in has not commenced due

CAPEX Protea (R5m). to the late appointment of the consultant. The new consultant’s tender is at evaluation stage.

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Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

40 Upgrade: Gravel Km of gravel roads 6.8 Km km 0 km Target was met. Roads to surfaced surfaced : LAWLEY EXT.1

: LAWLEY EXT.1 Project progress: Phase I and II

CAPEX contractors are proceeding with construction. 41 Upgrade: Gravel Km of gravel roads 9 km km 0 km Target was met. Roads to surfaced surfaced : IVORY PARK : IVORY PARK EXT.9 Project progress: EXT.9 Phase I and II

CAPEX contractors are proceeding with construction. 42 Upgrade: Gravel Km of gravel roads 2 km km 0 km Target was met.. Roads to surfaced surfaced : Protea South : Protea South Ext Ext 1 Project progress: 1 Construction is progressing well and is

CAPEX 25% complete with stormwater pipes installation and laying of imported material. 43 Upgrade: Gravel Km of gravel roads 6.2 Km km 0 km Target was met.. Roads to surfaced surfaced : TSHEPISONG : TSHEPISONG Project progress: Phase I and II

CAPEX contractors are proceeding with construction.

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Programme 3 – Bridge Management

(A) Bridges – Planning

Kpi No Project Key Performance Annual Target Measurement Target Progress Comments Measures taken to improve Indicators unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

44 BRID 20 - Conrad Reconstruction of Conrad 1 No 0 Target achieved Drive Bridge; Drive Bridge over (Bridge Blairgowrie. Braamfontein Spruit for reconstructed) During the quarter, the Renewal Bridges road widening and following was achieved: (Pedestrian and increase in stormwater > Traffic Studies Vehicles) capacity. completed. Awaiting CRAIGHALL B approval from Mobility WARD & Freight department; > EIA initiated and in

CAPEX progress; > WULA initiated and in progress.

Project handed over to Infrastructure Department (ID) on the 31 August 2015. 45 BRID 20 - Bridges: Partial construction of 3 Pillars, Piers, Pillars, Piers, Construction Target was met. Overtopping bridges (Overtopping) as Reinforced Reinforced commencement Construction (Flooding). per project plan earth fill, earth fill, Beams commenced and in Renewal Bridges (Pillars, Piers, Reinforced Beams progress.. (Pedestrian and earth fill, Beams) Vehicles) Project progress: JOHANNESBURG F Construction of City Wide deviation routes and

CAPEX piling progressed. (Ten major bridges (and 10 minor structures also) that overtop in large storms because of their

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Kpi No Project Key Performance Annual Target Measurement Target Progress Comments Measures taken to improve Indicators unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

low capacity need to be upsized. Investigate reasons for overtopping and safety problems and provide solutions. Bridges also need upgrade and rehabilitation.

(B) Bridges – Construction (New)

Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

46 BRID 30 - Jabulani No. of Bridge constructed 1 No 0 Target was achieved - Molapo Bridge. as per project plan Bridge New Bridges constructed During the quarter, the (Pedestrian and following was achieved: Vehicles) > PDR initiated ( Site JABULANI D Ward visual and scientific assessment activities in (New bridge over progress)

the railway to CAPEX > EIA process initiated provide access to development zone. Requires investigation and preliminary work. )

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Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

47 BRID 05 - No. of Bridge constructed 1 No 0 Target was met. Naledi/Protea as per project plan Bridge 0 was achieved against a Bridge (Between constructed target of 0. Wards 20 and 14). New Bridges Project progress: (Pedestrian and Construction in progress Vehicles) NALEDI with 90% complete for D Regional phase I of the project. Eskom must relocate (Construction of a cables prior to

linkage across the CAPEX construction railway line to continuation of the provide safety for second phase of the pedestrians and project. eventually shorten the vehicular movement in the area. ) 48 MISCL - % Implementation - 100% % 0 Target achieved Several meetings were held with Pedestrian Bridge construction of Bridge SCM to speed up the finalisation of in Klipspruit West. constructed as per project Progress: the appointment of the service New Bridges plan The bids for provider. (Pedestrian and procurement of the Vehicles) contractor closed on KLIPSPRUIT WEST the 21 October 2015. D Ward The evaluation process

is in hand. (Pedestrian The project is in track railway crossing at

CAPEX Fuscia Road in Ward 11 (eventually vehicular) to safely connect Klipspruit West and Chiawelo at Fuscia and Foxglove Rd.)

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Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

49 MISCL - % Implementation - 100% % 0 Target achieved. Several meetings were held with Pedestrian Bridge construction of Bridge SCM to speed up the finalisation of in Slovo Park New constructed as per project Progress: the appointment of the service

Bridges plan The bids for provider. (Pedestrian) procurement of the SLOVO PARK contractor closed on

CAPEX the 21 October 2015. The evaluation process is in hand. The project is in track

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Programme 4 – Stormwater Management

(A) Stormwater – Planning

Kpi No Project Key Performance Annual Target Measurement Target Progress Comments Measures taken to improve Indicators unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

50 RAMS - Number of Wards 64 Wards No of Wards 0 Target achieved Continuous monitoring of SCM to Stormwater Asset completed in respect of speed up the finalisation of the Monitoring Stormwater Asset Progress: service provider

System. New condition audit (Visual The report for Computer Condition assessments) appointing the same Software service provider who

CAPEX JOHANNESBURG did the first phase of City Wide the audit has been submitted to MD by SCM for approval. 51 MISCL - Stormwater Master SWMP: SWMP 0 Target achieved; Integrated Roads Planning per identified 1.Ivory park ext 7, 6, and Stormwater areas as per the project 5,2 Progress Master planning. plan. 2. Zandspruit New Bid Document New Stormwater 3. Carlsworld served at BAC on the 18 Management 4. September 2015. Projects Finetown/Ennerdale Project is on track. JOHANNESBURG south Progress in line with F City Wide 5. Weilers farm/ initial projection Sweetwater’s (Determination of 6. Midrand floodlines and all (Development

the roads and CAPEX Node). stormwater 7. 3rd Road studies as part of (Development Master planning Node). throughout the 8. Chartswell Sub City of catchments Johannesburg.) (Development Node) 9. Carlsworld Sub catchment (Development

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Kpi No Project Key Performance Annual Target Measurement Target Progress Comments Measures taken to improve Indicators unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

Node)

52 SW Asset Number of Wards 64 No of Wards 0 Target achieved Continuous monitoring of SCM to Monitoring assessed - SW Asset speed up the finalisation of the Monitoring as per project Progress: service provider

plan The report for appointing the same service provider who

CAPEX did the fisrt phase of the audit has been submitted to MD by SCM for approval.

(B) Stormwater - Network development and Upgrading (Formal stormwater network in all currently un-serviced previously disadvantaged areas)

Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

53 CATCH 10 - Number of Emergency 1200 Metre; 0 Target was met. Emergency Stormwater Improvement diameter = 75 Number 0 was achieved against a Stormwater (Multiyear): Protea Glen m target of 0. Improvement Ext 1-4 (Phase 1-5) 1050 (Multiyear): completed as per project diameter = Project progress:

Protea Glen Ext 1- plan 535 m The bid specification for 4 (Phase 1-5). 900 a new construction New Stormwater diameter = tender was compiled

CAPEX Catchments 890 m and submitted for PROTEA GLEN D 750 approval Ward diameter = 540 m (Upgrading of 600 stormwater diameter =

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Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

drainage network 106 m to eliminate 450 ponding of the diameter = area. ) 144 m Number of manholes = 46 Number of kerb inlets = 44

54 REHAB - % Rehabilitation of Open 100% % 0 Target was achieved Rehabilitation of Channels City Wide Project 0 was achieved against a Open Channels completed as per project target of 0. City Wide. plan Renewal Project progress: Stormwater The contractor was Management appointed for Killarney. Projects JOHANNESBURG F City Wide

(This project is CAPEX exclusive of the Conversion of Open Drains programme; and entails the rehabilitation of stormwater open channels City Wide in former old stormwater structures.)

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(C) Stormwater - Network development and upgrading (Conversion of open SW channels to underground systems)

Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

55 CONV - Conversion of Km of Conversion of Open 0.8 km Km 0 km Target was achieved Open Drains to Drains to 0 km was achieved Underground/Covered Underground/Covered against a target of 0 km. Drains in Bram Drains in Bram Fischerville Fischerville. Renewal Project completed as per Project progress:

Stormwater project plan CAPEX Construction is in Management Projects progress and is 99% BRAM FISCHERVILLE C complete. Ward 56 CONV - Conversion of Km of Conversion of Open 4 km Km 0 km Target was achieved Open Drains to Drains to 0 km was achieved Underground/Covered Underground/Covered against a target of 0 km. Drains in Ivory Park Drains in Ivory Park Project and surrounding completed as per project Project progress: areas. Renewal plan Construction in progress Stormwater and appointment of the

Management Projects CAPEX subcontractors and IVORY PARK EXT.7 A local labour is also in Ward progress. The appointed consultant is proceeding with Investigations for designs. 57 CONV - Conversion of Km of Conversion of Open 0.65 km Km 0km Target was achieved Open Drains to Drains to 0 km was achieved Underground/Covered Underground/Covered against a target of 0 km. Drains in Ivory Park Drains in Orange Farm and surrounding Project completed as per Project progress: areas. Renewal project plan The preliminary and Stormwater detailed designs have Management Projects been submitted by the

ORANGE FARM A CAPEX newly appointed Ward consultant. The construction tender was cancelled due to expiry of the validity period. Bid specification documents have been

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Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

submitted to BSC for approval

(D) Stormwater – Rehabilitation and Maintenance

Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

58 MISCL - Dam Number of Dam Safety 1 Dam wall Number 0 Target was achieved Safety Rehabilitation Project rehabilitated 0 was achieved against a Rehabilitation completed as per project target of 0. Renewal plan Stormwater Project progress: Management Construction in progress Projects and at 40% complete JOHANNESBURG F

City Wide

(Updating of

CAPEX inspections and urgent rehabilitation work to comply with statutory legislation and ensure public safety. Dams are moving to EISD; )

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(E) Stormwater – Routine Maintenance

Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

59 Repair and Number of SW drains / 55000 No 16 500 Target not achieved There is a shortage of HCM to conclude the recruitment Clearing of Kerb Inlets (Ki's) cleaned manpower to address the process of all funded vacancies. Stormwater During the quarter, increasing requests for And place some of the work onto

Systems (Ki's) 13,004 stormwater cleaning of KI Jozi@Work programme.

OPEX drains were cleaned against a target of 16,500

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Programme 5 – Mobility Management

(A) Mobility – Network Development

Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

60 MOB - Alternative Number of Energy 225 No of 25 Target achieved Energy: efficiency: Light Emitting intersections Alternative Power Diodes(LED) installed at A total of 25 traffic Sources (LED). traffic signals (overheads signal intersections were

New Mobility: only). fitted with hardware Intelligent related to Light Emitting Transportation Diodes (LED ) against a

CAPEX System & target of 25. Networks Project is on track JOHANNESBURG F City Wide

61 MOB - Alternative No implementation of 125 No 0 Target achieved Energy: Uninterruptible Power Alternative Power Supply (UPS) installed at Procurement of UPS's Sources (UPS). critical identified commenced during the New Mobility: intersections. quarter and part Intelligent delivery were made.

Transportation CAPEX Project is on track System & Networks JOHANNESBURG F City Wide 62 MOB - CCTV Number of intersections 9 No 0 Q1 target was achieved Cameras. New fitted with CCTV cameras

Mobility: to monitor intersections Procurement of CCTV Intelligent and roads. equipment commenced Transportation on existing contract. In

CAPEX System & all, equipment for 5 Networks CCTV installations have JOHANNESBURG F been ordered from the

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Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

City Wide current supplier The bid specification of the new tender was finalised during the quarter. The project is on track

63 MOB - Remote Number of Remote 150 No of 20 Target achieved Monitoring: Monitoring Units (RMU's) intersections Urban Traffic installed as per project A total of 27 Remote Control (UTC). plan Monitoring Units were New Mobility: installed at traffic signals Intelligent intersections against a

Transportation CAPEX target of 20. System & Project is ahead of Networks schedule JOHANNESBURG F City Wide 64 MOB - Traffic Number of traffic signals 45 No of 10 Target achieved Signal Adaptive fitted with Adaptive intersections Control (TSAC). Control detection devices During the quarter, 16

New Mobility: as per project plan Adaptive Control Units Intelligent were installed against a Transportation target of 10

CAPEX System & Project is ahead of Networks schedule JOHANNESBURG F City Wide

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(B) Mobility – Construction

Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

65 MOB - Installation Number of New 2 New No of 0 Target achieved of New Warranted Traffic Signals Warranted intersections Warranted Traffic installed as per project Traffic Signals Designs for the 2 new Signals in All plan traffic signal intersection

Wards City Wide. have been completed; New Mobility: An application for power Intelligent and way leaves were

CAPEX Transportation submitted to City Power System & and JRA (Regions) Networks respectively. JOHANNESBURG F The project is ahead of City Wide schedule

(C) Mobility – Renewal

Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

66 MOB – Re-cabling Number of Traffic Signal 90 No of 10 Target achieved of Old Redundant intersections re-cabled intersections Cables at (replacement of Old A total of 23 Traffic Signalized Traffic Redundant Cables at Signals were re-cabled

Intersections. Signalized Traffic against a target of 10. Renewal Mobility: Intersections) Project is ahead of Intelligent schedule

CAPEX Transportation System & Networks JOHANNESBURG F City Wide

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Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

67 MOB - SARTSM: Number of traffic signals 50 No of 10 Target achieved Upgrade of upgraded to SARTSM intersections Existing Signalised requirements as per A total of 16 traffic Intersections. project plan signal intersections were Renewal Mobility: upgraded to SARTSM Intelligent standards against a

Transportation CAPEX target of 10. System & Project is ahead of Networks schedule JOHANNESBURG F City Wide 68 MOB - Upgrading Number of controllers 200 No of 50 Target achieved Controllers . hardware upgraded as per intersections Renewal Mobility: project plan A total of 50 traffic Intelligent signal controller Transportation hardware were

System & CAPEX upgraded against a Networks target of 50. JOHANNESBURG F The project is on track Regional

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(D) Mobility - Planning

Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

69 MOB - Intelligent % Implementation of 95% % 0% Target achieved Transport Intelligent Transport Systems (ITS) Systems (ITS) Project as Progress Projects. New per project plan Design, ordering of Mobility: equipment has been Intelligent done. This will be

Transportation CAPEX reflected as System & implementation in Q2 Networks JOHANNESBURG F City Wide

(E) Mobility – Maintenance

Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

70 Traffic signs Number of Traffic Signs 2500 No 250 Target achieved maintained. Maintained (Maintain route During quarter one 1

markers, tourism 329 traffic signs were

signs, directional OPEX upgraded and signs and maintained against a regulatory/ target of 250 warning signs)

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Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

71 Upgrade: - Number of street names 40000 No 4000 Target not achieved Shortage of material is still Material was delivered in the last upgrading of (kerbs) painted the challenge for the Regions month of the quarter (Mid - street names: During the quarter, 2 September) and the teams are kerbs with street 032 street names were catching up on the backlog. names re-painted: OPEX painted on the kerbs against a target of 4000

72 Upgrading and Total Lane km of faded 1500 Lane km 150 Target not achieved Shortage of mate rial is still Material was delivered in the last maintaining faded road marking upgraded the challenge for the Regions month of the quarter (Mid - Road Markings During quarter 30,76 September) and the teams are Lane Km faded road catching up on the backlog. OPEX was upgraded against a target of 150 Lane Km

73 Upgrading and Number of Street name 3000 No 300 Target achieved Shortage of material is still SCM to conclude the appointment maintaining street (Poles mounted) upgraded the challenge for the Regions of the contractor for the material.

names (pole During this quarter 469 No contract in place to mounted street Street name (Poles supply the poles names) OPEX mounted) were Under resourced regions upgraded against a target of 300

(F) Mobility – Road Safety

Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

74 Investigations of % of investigations 100% % 100% Target achieved Road Safety completed as a result of requests from petitions received 8 petitions received petitions during the quarter and OPEX all 8 were investigated. (100%)

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Programme 6: Internal Processes

Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

75 Asset Tons of Asphalt produced 120000 Tons 35 000 Target not achieved Shortage (6 weeks)of Preservation (own consumption) Bitumen country wide from During the quarter a all Refineries, 24 hours Production of Includes external sales total of 15 398.80 tons calibration of the plant and

asphalt in support of Asphalt was produced 24 hours no demand from of Rehabilitation against a target of 35 Regions and Logistics and Renewal OPEX 000 tons challenges. Roads • Internal supply : 15 programmes 303.03 tons • External Sales : 95 tons 76 CS - Capital %. of Capital Equipment 95% No 5% Target achieved Budget is committed for Equipment. New (New Plant and minor plant, delivery in Plant and Equipment) Budget R 4.5 Million committed Quarter 2 Equipment procured /orders placed against a JOHANNESBURG CAPEX target of R 250 000. City Wide

77 IT - ERP % of Initiatives 100% % 18% Target achieved Migration. New implemented as per Computer project plan – SAP 50% of the Software Migration implementation plan JOHANNESBURG was achieved against a City Wide quarterly target of 18%

CAPEX • Project Preparation- completed • Delta analysis – completed. • Realization- In progress

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Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

78 EPWP Jobs Number of Jobs Created 2200 No 646 Target was achieved created (EPWP Job Creation)

OPEX 706 jobs were created against a target of 646.

Programme 7: Finance Management

Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

79 Financial % spend on JRA’s 95% % 23% Target was achieved Management operating budget against During the quarter, R (OPEX approved operating 209,44 million was Expenditure) budget spent on OPEX projects against an quarterly

target of R 216,934

OPEX million, this reflecting 22,2 % against a target of 23 % (1% under budget) . This falls within the 5% tolerance 80 Financial % spend on JRA’s capital 90% % 15% Target was not achieved Management budget against approved During the quarter a

(CAPEX capital budget total of R 168,620 Expenditure) million was spent on CAPEX projects against a

CAPEX quarterly target of R 212,286 million. This represents 11,92 %

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Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

against a quarterly target of 15% 81 Supply 75% of total procurement 75% 75% Target was achieved Management spend on BBBEEE (BBBEE Total payments made in

Expenditure) the 1st quarter amount to R430, 702,578.60 of OPEX which R 348,729,196.77 was spent on BBBEE suppliers. (81 % against a target of 75%). 82 Finance % of service providers paid 95% 95% Target was achieved Accounts not paid included Continuous education of both Management: - within 30 days. During the quarter, 99 % non-compliance matters by internal and external stakeholders. Management of of all service providers stakeholders (e.g. Non-VAT Daily tracking of queries. financial records were paid within 30 days compliance, missing quotes, of the entity in against a target of 95% supplier performance issues)

accordance with

any prescribed OPEX norms and standards, and are effective ,efficient and transparent 83 Achievement of % Achievement of selected 100% 100% Target partially achieved selected profitability and liquidity • Current • Current profitability and ratios ratio: 1:1 ratio: 1:1 Current Ratio: 1.39:1 liquidity ratios (Current; Solvency; • Solvency • Solvency against a target of 1:1 Remuneration to ratio: 2.2:1 ratio: 2.2:1 (achieved); Expenditure; Maintenance • • to Expenditure.) Remuneration Remuneration Solvency Ratio 0,59:1 to to against target of 2,2:1

N/A Expenditure: Expenditure: (achieved); below 35% below 35% • • Remuneration to Maintenance Maintenance Expenditure is 45% to to against a City target of Expenditure: Expenditure: below 35% (not 5.3% 5.3% achieved)

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Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

Maintenance to Expenditure 0,01% against a target of 5,3% (not achieved)

Programme 8: Governance

Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

84 Audit findings- Number of issues raised by 100% % 0% Target achieved Progress 2014-15 Audit: external and the AG resolved as % of internal audit total number of issues Progress Out of a total of 36 findings

raised by the AG in the The 2015/16 Audit is still raised, thirty one (31) has Management Letter in progress to be been resolved by N/A finalised end of management (86%) and five November 2015 (5) are unresolved (14%). During the quarter, 3 findings were resolved. 85 Number of audit findings 100% % 20% Target achieved Progress 2014-15: raised by Internal Audit resolved on set Of the hundred and Of the 133 findings Internal implementation dates, as twenty two (122) Audit findings open as at 1st

% of total number of findings due for July 2015, as at 23 rd

findings raised in the /A resolution by the JRA, September 2015, seven (7) internal audit reports. N twenty eight (28) findings are unresolved. findings were resolved Of the 133 findings, a total of (23%) against a target of five(5) findings falls within 20% the City Group Governance Ninety four (94), are mandate and as such were

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Kpi No Project Key Performance Annual Measurement Target Progress Comments Measures taken to improve Indicators Target unit (Q1) (Q1) (Reasons for non- performance conformance) Action Plans (Q1) (where performance is behind schedule)

Budget Stream Budget (Q1)

unresolved. transferred for implementation through City Group Internal Audit. This has resulted in the number of JRA related findings being reduced to 122 findings.

86 Detailed risk Implementation of the Risk 100% 12% Target was achieved management Management Plan (24) implementation During the quarter, 5 plan activities were achieved against an annual target of 24 (20.8% against a quarterly target of 12%)

1. The following were developed and approved: (i) Risk Implementation Plan (ii) Terms of reference

N/A for the EMT Risk Management Committee and the Risk Management Forum 2. Strategic, Operational and Project risks were identified, reviewed, assessed and approved 3. The Risk Management Policy and Framework was reviewed and will be presented for approval by the Board on 30 September 2015

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Annexure E Injuries on duty

SCHEDULE FOR INJURIES ON DUTY (JULY – SEPTEMBER 2015)

DEPOT DATE OF THE Gender NO OF REMARKS Proposed corrective action to prevent ACCIDENT DAYS reoccurrence by SHE Unit Male Female LOST

JULY -2015

1. HAMBERG 22.07.2015 x Employee tripped and fell while walking out of the office Employee should avoid moving fast on uneven injured left ankle ground

2. AVALON 16.07.2015 x 4 Employee got injured on her right arm when getting off Employee always to take time to close the door of the truck the truck when getting off.

3. RSD 23.06.2015 x 0 Employee was approaching the truck and twisted her Employee to be observant of the surroundings ankle. especially when the ground is uneven.

4. DOBSONVILL 03.07.2015 x Employee injured left ankle and foot Employees to carry out a two minutes E observation to identify any hazards before start an activity. Also always wear protective equipment provided to do the work.

5. DOBSONVILL 22.07.2015 x Employee got injured when offloading tools from the Employees to carry out a two minutes E truck and injured his back and head observation to identify any hazards before start an activity and training on principle of manual handling 6. DOBSONVILL 27.05.2015 x Employee injured her back Train employees on principle of manual handling E 7. DOBSONVILL 27.05.2015 x Employee injured his right shoulder and his back Train employees on principle of manual handling E AUGUST-2015

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DEPOT DATE OF THE Gender NO OF REMARKS Proposed corrective action to prevent ACCIDENT DAYS reoccurrence by SHE Unit Male Female LOST

8. HAMBERG 05.08.2015 x 3 Employee injured right finger Employee to wear hand gloves as protective equipment at all times

9. NORWOOD 26.08.2015 x Employee injured right middle finger by a truck door Employee always to take time to close the door of the truck when getting off

SEPTEMBER-2015

10. RSD 17.07.2015 x Employee was hit by a spoil on the forehead Train employees on principle of manual handling Effective communication between employees working on the same site and closer to each other.

11. DOBSONVILL 27.08.2015 x Employee injured his chest Train employees on principle of manual handling E 12. MOTORWAY 23.08.2015 X Employee injured the left hand and foot by a hand rail Employee to wear hand gloves as protective S when it slipped and hurt him equipment at all times 13. MOTORWAY 09.08.2015 x 4 Employee got injured on the leg while removing Train employees on principle of manual handling S guardrails

14. MOTORWAY 12.09.2015 x Employee injured left finger while lifting the left KI top Employee to wear hand gloves as protective S equipment at all times

15. MOTORWAY 12.09.2015 x Employee injured by a guardrail while offloading from Train employees on principle of manual handling S the truck on the left hand

16. BENROSE 13.08.2015 x Employee got injured while offloading manhole middle Employee to wear hand gloves as protective finger got injured equipment at all times and follow offloading SOP‟s as well as training on principle of manual handling

17. BENROSE 15.09.2015 x Employee got electric shock and got unconscious Employees to carry out a two minutes observation to identify any hazards before start an activity 18. DOBSONVILL 15.09.2015 x 1 Employee got injured left hand and hip and fell at the The driver needs to be reprimanded with regard

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DEPOT DATE OF THE Gender NO OF REMARKS Proposed corrective action to prevent ACCIDENT DAYS reoccurrence by SHE Unit Male Female LOST

E back of the truck when driver applied sudden brake to speeding

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Annexure F Income Statement Detail Income Statement by Company For the quarter ending: September 2015

Current Quarter Current Quarter Variance Variance YTD Actual YTD Budget YTD Variance YTD Current Year Total Description Actual Amount Budget Amount Amount % Current Period Amount Amt Variance % Approved Budget REVENUE Rent Received 909 306 848 000 61 306 7,23% 909 306 848 000 61 306 7,23% 3 392 000 Gautrans Maintenance 1 483 000 2 464 500 -981 500 -39,83% 1 483 000 2 464 500 -981 500 -39,83% 9 858 000 COJ Maintenance 202 602 250 202 602 250 - 0,00% 202 602 250 202 602 250 - 0,00% 810 409 000 TOTAL REVENUE 204 994 556 205 914 750 -920 194 204 994 556 205 914 750 -920 194 823 659 000

DIRECT COSTS Material Cost 19 418 380 14 759 349 -4 659 031 -31,57% 19 418 380 14 759 349 -4 659 031 -31,57% 59 037 395 Jozi@Work 1 192 500 1 192 500 100,00% 1 192 500 1 192 500 100,00% 4 770 000 Emergency (Ringfenced) 4 097 761 4 097 761 100,00% 4 097 761 4 097 761 100,00% 16 391 042 Stock Adjustment -1 682 089 - 1 682 089 100,00% -1 682 089 - 1 682 089 0,00% TOTAL DIRECT COST 17 736 291 20 049 609 2 313 319 17 736 291 20 049 609 2 313 319 80 198 437

GROSS PROFIT 187 258 265 185 865 141 1 393 125 187 258 265 185 865 141 1 393 125 743 460 563

OTHER INCOME Recoveries Telephone Calls Faxes 48 275 - 48 275 100,00% 48 275 - 48 275 100,00% Asphalt Sales 1 180 686 1 060 000 120 686 11,39% 1 180 686 1 060 000 120 686 11,39% 4 240 000 Jobbings 6 543 351 6 095 000 448 351 7,36% 6 543 351 6 095 000 448 351 7,36% 24 380 000 Reinstatements 4 032 713 3 474 768 557 946 16,06% 4 032 713 3 474 768 557 946 16,06% 13 899 070 Developers Income 9 495 990 10 070 000 -574 010 -5,70% 9 495 990 10 070 000 -574 010 -5,70% 40 280 000 Insurance Claims 5 415 217 1 457 500 3 957 717 271,54% 5 415 217 1 457 500 3 957 717 271,54% 5 830 000 Interest from Intercompanies 6 468 524 - 6 468 524 100,00% 6 468 524 - 6 468 524 100,00% Other Sales 352 547 114 745 237 802 207,24% 352 547 114 745 237 802 207,24% 458 980 Management Fees 7 033 545 7 195 983 -162 438 -2,26% 7 033 545 7 195 983 -162 438 -2,26% 28 783 930 Sundry Income 28 947 415 255 -386 308 -93,03% 28 947 415 255 -386 308 -93,03% 1 661 020 TOTAL OTHER INCOME 40 599 795 29 883 250 10 716 545 40 599 795 29 883 250 10 716 545 119 533 000

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Current Quarter Current Quarter Variance Variance YTD Actual YTD Budget YTD Variance YTD Current Year Total Description Actual Amount Budget Amount Amount % Current Period Amount Amt Variance % Approved Budget INDIRECT COSTS Advertising 123 601 1 109 560 985 959 88,86% 123 601 1 109 560 985 959 88,86% 4 438 241 Auditors Remuneration Fees 1 226 999 700 000 -526 999 -75,29% 1 226 999 700 000 -526 999 -75,29% 2 800 000 Bank Charges 14 224 37 500 23 276 62,07% 14 224 37 500 23 276 62,07% 150 000 Consulting Fees 9 325 267 14 703 054 5 377 787 36,58% 9 325 267 14 703 054 5 377 787 36,58% 58 812 216 Contractors JRA 4 422 717 17 789 058 13 366 341 75,14% 4 422 717 17 789 058 13 366 341 75,14% 71 156 230 Contractors Outsourced 1 356 488 1 457 800 101 312 6,95% 1 356 488 1 457 800 101 312 6,95% 5 831 200 Consumables 739 687 2 081 463 1 341 776 64,46% 739 687 2 081 463 1 341 776 64,46% 8 325 850 Depreciation 8 315 908 7 750 000 -565 908 -7,30% 8 315 908 7 750 000 -565 908 -7,30% 31 000 000 Directors Emoluments 527 933 325 000 -202 933 -62,44% 527 933 325 000 -202 933 -62,44% 1 300 000 Entertainment 103 233 234 650 131 417 56,01% 103 233 234 650 131 417 56,01% 938 600 Corporate Promotions 1 024 258 824 449 -199 810 -24,24% 1 024 258 824 449 -199 810 -24,24% 3 297 794 Insurance 2 805 750 2 805 750 - 0,00% 2 805 750 2 805 750 - 0,00% 11 223 000 Intercompany Charges 631 402 1 719 250 1 087 848 63,27% 631 402 1 719 250 1 087 848 63,27% 6 877 000 Leased Contract Services 36 011 417 28 667 191 -7 344 226 -25,62% 36 011 417 28 667 191 -7 344 226 -25,62% 114 668 765 Offices(Parking) 426 804 394 850 -31 954 -8,09% 426 804 394 850 -31 954 -8,09% 1 579 400 Office Equipment 77 600 265 000 187 400 70,72% 77 600 265 000 187 400 70,72% 1 060 000 Legal Expenses 68 000 750 000 682 000 90,93% 68 000 750 000 682 000 90,93% 3 000 000 Licenses 67 496 208 375 140 879 67,61% 67 496 208 375 140 879 67,61% 833 500 Magazines Books and Periodicals 40 931 266 341 225 410 84,63% 40 931 266 341 225 410 84,63% 1 065 364 Municipal Services Charges 6 755 089 6 428 755 -326 334 -5,08% 6 755 089 6 428 755 -326 334 -5,08% 25 715 021 Stationary 570 371 724 030 153 659 21,22% 570 371 724 030 153 659 21,22% 2 896 119 Printing 297 261 1 067 594 770 333 72,16% 297 261 1 067 594 770 333 72,16% 4 270 374 Repairs & Maintenance 1 535 197 5 574 286 4 039 089 72,46% 1 535 197 5 574 286 4 039 089 72,46% 22 297 142 Strategic Planning 378 500 378 500 100,00% 378 500 378 500 100,00% 1 514 000 Employee & Related Costs 104 968 358 107 848 500 2 880 142 2,67% 104 968 358 107 848 500 2 880 142 2,67% 431 394 000 Employee Wellness 353 860 631 510 277 650 43,97% 353 860 631 510 277 650 43,97% 2 526 039 Security 6 035 483 4 277 644 -1 757 839 -41,09% 6 035 483 4 277 644 -1 757 839 -41,09% 17 110 575 Software Expenses 3 038 875 000 871 962 99,65% 3 038 875 000 871 962 99,65% 3 500 000

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Current Quarter Current Quarter Variance Variance YTD Actual YTD Budget YTD Variance YTD Current Year Total Description Actual Amount Budget Amount Amount % Current Period Amount Amt Variance % Approved Budget Social Responsibility 62 700 62 700 100,00% 62 700 62 700 100,00% 250 800 Telephone & Fax 1 135 130 1 015 421 -119 709 -11,79% 1 135 130 1 015 421 -119 709 -11,79% 4 061 684 Training 1 056 289 2 247 579 1 191 290 53,00% 1 056 289 2 247 579 1 191 290 53,00% 8 990 317 Travel Expenses 39 214 412 500 373 286 90,49% 39 214 412 500 373 286 90,49% 1 650 000 Data Services 2 148 148 2 065 083 -83 065 -4,02% 2 148 148 2 065 083 -83 065 -4,02% 8 260 332 Realised Gains/Losses 50 000 50 000 100,00% 50 000 50 000 100,00% 200 000 TOTAL INDIRECT COST 192 207 153 215 748 391 23 541 238 192 207 153 215 748 391 23 541 238 862 993 563

OPERATING PROFIT 35 650 907 - 35 650 907 35 650 907 - 35 650 907 -

NET INCOME BEFORE TAX 35 650 907 - 35 650 907 35 650 907 - 35 650 907 -

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Annexure G Notes to Financial Notes to Financial Statement Statement NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD SEPTEMBER 2015

2015 2015 September June R'000 R'000

1. Property, plant and equipment Accumulated Carrying Cost Depreciation Value R'000 R'000 R'000

Buildings 63 118 11 903 51 215 51 530 Land 17 294 - 17 294 17 293 IT Equipment 19 250 11 826 7 424 8 544 Furniture and Fittings 15 016 8 729 6 287 6 578 Office Equipment 7 826 3 298 4 528 4 834 Motor Vehicles 14 450 15 305 Tools and Loose Gear 525 479 46 51 Assets (WIP) 17 907 17 907 1 592 Plant and Machinery 114 994 65 995 48 999 53 845 Total 255 930 102 231 168 149 159 572

2. Intangible Assets Accumulated Carrying Cost Depreciation Value R'000 R'000 R'000 Computer Software 14 060 12 340 1 720 17 294 Total 14 060 12 340 1 720 17 294

3. Employee benefit investment

Post-retirement Gratuity 32 710 32 884 Post-retirement Housing Subsidy - - Post-retirement Medical Aid 25 621 25 620 58 330 58 504

4. Trade and other receivables Trade Debtors 12 228 31 120 Related party Receivables 337 188 336 651 Prepayments 69 270 43 440 Provision for bad debts (4 948) 4 947 Electricity Deposit 150 300 STD Bank Trust Account' - CoJ - Capital expenditure 27 312 26 295 441 199 442 753

139

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 2015

2015 2015 September June R'000 R'000 5. Inventories Raw Materials 20 914 18 772 Consumables - 3 784 Disclosure of Consumables 3 784 Impairments (2 664) (2 664) 22 034 19 892

6. Bank Balances and Cash Petty Cash 2 2 JPC Portfolio (Bank) - Inter-company account 459 110 425 737 Absa Bank Accounts - Standard Bank Accounts Developers contribution 459 112 425 739

7. Contribution from Owner Share Capital 1 1 Shareholders Loan 182 759 123 014 182 760 123 015

8. Employee Benefit Obligation Gratuity Liabilities 34 817 34 817 Post-retirement medical aid 8 115 8 115 Post-retirement housing subsidy 2 955 2 955 45 888 45 887

9. Finance Lease Obligation Current lease portion 10 520 10 519 10 520 10 519

10. Trade and other payables Trade Payables 401 530 442 456 Capital Accruals - Gratuity Provision - - Leave Pay Provision 26 390 25 345 Retention 82 911 66 103 Related Party Creditors 46 342 25 979 Payroll Accruals 3 825 4 120 Fair Value of Creditors (196) (195) Prepayments 89 286 100 444 Bonus Provision: 13th Cheque 13 363 9 767 663 450 674 019 11. Finance Lease Obligation Long term portion of finance lease 13 943 15 986 13 943 15 986 140 | P a g e

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 2015

2015 2014 September June R'000 R'000

12. Provision Legal Claim Provision 29 100 29 350 Bonus Provision: Performance 2 431 10 130 31 531 39 480

13. Cash Utilised in Operations Surplus / (Deficit) before taxation 35 651 120 434 Adjusted for: Depreciation and amortisation 8 316 23 805 Interest Earned 1 859 Gain on sales of property, plant and equipment - 25 Finance Costs - Decrease in loan to shareholder - Other non cash movements 289 Movement in provisions 31 450 Movement in shareholders loan 33 703 Assets purchased through finance lease 26 298 Movement in retirement benefit obligation 175 5 254 Changes in Working Capital Inventories (2 142) (8 660) Trade and other receivables 1 554 (268 413) Trade and other payables (10 570) 250 346 32 984 216 391

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Annexure H Balance Sheet

Balance Sheet : September 2015

Statement of Financial Position as at September 2015 2015 2014 September June R'000 R'000 Assets Notes

Non-Current assets 228 199 235 374 Property plant and equipment 1 168 149 159 575 Intangible Assets 2 1 720 17 294 Employee benefits investment 3 58 330 58 505

Current assets 922 345 888 385 Inventories 5 22 034 19 892 Trade and other receivables 4 441 199 442 753 Bank balances and cash 6 459 112 425 740

Total Assets 1 150 544 1 123 759

Equity & Liability

Equity 385 212 348 247 Contribution from owner 7 182 760 181 445 Accumulated Surplus 202 452 166 802

Non-Current Liabilities 59 831 61 874 Employee benefit obligations 8 45 888 45 888 Finance lease obligations 11 13 943 15 986

Current Liabilities 705 501 713 638 Trade and other payables 10 663 450 674 020 Finance lease obligations 9 10 520 10 519 Provisions 12 31 531 29 099

Total Liabilities 1 150 544 1 123 759

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Annexure I Cash Flow

Cash Flow

Cash Flow Statement for the period ended September 2015 2015 2014 September June R'000 R'000 Note Cash Flows from Operating Activities

Cash used in operations 13 32 984 377 653 Interest income - 20 649 Finance Costs - Net Cash from operating activties 32 984 398 302

Cash flows from investing activities

Purchase of property,plant and equipment (1 314) (58 428) Proceeds from sale of property, plant and equipment - - Increase in Developers contribution - - Decrease in Loan to shareholder 2 432 - Net Cash from investing activities 1 118 (58 428)

Cash Flow From Financing Activities

Decrease in shareholder's loan 1 315 Repayment of finance lease obligations-non current (2 042) (10 739) Net Cash From financing activities (727) (10 739)

Total Cash Movement for the period 33 374 329 135 Cash at the begining of the period 425 740 96 606 Total cash at the end of the period 459 114 425 741

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Annexure J Fraud Allegations Register 2015/16

No. Description Date Source Category Action Plan Date issued to Status Investigation Financial Progress reported investigation/ Cost Loss (R) (R) 1 Allegation of 15-Jul-15 Whistle- Contract Referred to the COJ 20-Aug-15 Open Unknown Unknown The service provider Contract blower procurement Investigating Unit appointed and investigation in procurement irregularities progress. irregularities 2 Allegation of 20-Jul-15 Whistle- Contract Referred to the COJ 20-Aug-15 Open Unknown Unknown Part of 1 above. Contract blower procurement Investigating Unit procurement irregularities irregularities 3 Payroll 30-Aug-15 Whistle- Payroll fraud To be referred to the N/A Open Unknown Unknown Preliminary reviewed investigations blower City for intervention completed and the matter to be referred to COJ investigation Unit for investigation. 4 Irregular Road 27-Aug-15 Whistle- Contract Preliminary N/A Open Unknown Unknown Preliminary investigation in Marking by blower procurement Investigation in progress. contractors irregularities progress

______

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Annexure K

Amounts owing by other Government Entities

Description Note Open Amount Current 31-60 61 - 90 91 - 120 Over 120 Overdue

City of Johannesburg - Dept 1 2 584 753,79 2 584 753,79 2 584 753,79 Capital Dev Operational 2 3116213,91 3123284,68 -7070,77 (7 070,77) COJCity Capitalof Johannesburg Funding Dept of 9003 48 678840 678,83622,09 45 840 915 622,09357,33 2 826 601,50 -63 280,00 2 763 321,50 City of Johannesburg -Treasu 2 6 017 994,46 1 082 950,00 342 926,00 4 459 385,46 132 733,00 4 935 044,46 JohannesburgUrban Settlement Water Development SOC Ltd - 9004 38 3 880552 725,57789,33 20 1 550908 122,93767,66 17 644 021,67 - - 2 319 829,64 10 773,00 17 1 644990 021,67216,43 Urban Settlement Development 5 38 552 789,33 20 908 767,66 17 644 021,67 - - - 17 644 021,67

Under R1.0m 1 065 923,82 876 478,58 - 245 310,93 - (55 865,69) 189 445,24 103 897 079,71 73 456 961,18 20 813 549,17 245 310,93 6 779 215,10 2 602 043,33 30 099 732,32 Notes 1 EPWP work undertaken by the JRA 2 General claims: Gratuity, Events 3 Capital projects undertaken by the JRA on behalf of the CoJ financed by CoJ 4 Jobbings and Re-instatements 5 Capital projects undertaken by the JRA on behalf of the CoJ financed by USDG

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Annexure L

Contracts awarded (Q1)

CONTRACT CONTRACT TYPE OF CONTRACT DESCRIPTION BU SERVICE PROVIDER (S) START DATE END DATE AMOUNT (VAT NUMBER CONTRACT INCLUSIVE)

July 2015 A566 Panel of Service Providers for Capability Support ID Bitupquip Construction & 21/07/2015 Project R3 247 408.08 Fixed Term Agent (CSA) Basket 1 and Basket 2 Services to Palconi Project Based Micro, Small and Very Small Concerns Executing Gochi Trading cc R4 199 100.49 Work Packages in Specific Sectors Under the Jozi@Work Programme (Wave1) @ Region G Jolobe Trading cc R2 878 583.88 VZ Contractor & Epic R4 735 799.38 Engineering (Pty) Ltd 005/2015 Appointment of Panel of Service Providers for Marketing Oratilwe Consulting 23/07/2015 21/07/2017 Rates Fixed Term Provision of Event Management & Logistical Support Services for Johannesburg Roads Agency (JRA) for a Period of Two Years As And When Required 005/2015 Appointment of Panel of Service Providers for Marketing Meropa Communications 23/07/2015 21/07/2017 Rates Fixed Term Provision of Event Management & Logistical (Pty) Ltd Support Services for Johannesburg Roads Agency (JRA) for a Period of Two Years As And When Required 005/2015 Appointment of Panel of Service Providers for Marketing Garona Communications & 23/07/2015 21/07/2017 Rates Fixed Term Provision of Event Management & Logistical Projects cc Support Services for Johannesburg Roads Agency (JRA) for a Period of Two Years As And When Required 005/2015 Appointment of Panel of Service Providers for Marketing Gourmet Food Services (Pty) 23/07/2015 21/07/2017 Rates Fixed Term Provision of Event Management & Logistical Ltd Support Services for Johannesburg Roads Agency (JRA) for a Period of Two Years As And When Required

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CONTRACT CONTRACT TYPE OF CONTRACT DESCRIPTION BU SERVICE PROVIDER (S) START DATE END DATE AMOUNT (VAT NUMBER CONTRACT INCLUSIVE)

005/2015 Appointment of Panel of Service Providers for Marketing Caysha Marketing 23/07/2015 21/07/2017 Rates Fixed Term Provision of Event Management & Logistical Support Services for Johannesburg Roads Agency (JRA) for a Period of Two Years As And When Required 005/2015 Appointment of Panel of Service Providers for Marketing OTW Promotions & Events 23/07/2015 21/07/2017 Rates Fixed Term Provision of Event Management & Logistical cc Support Services for Johannesburg Roads Agency (JRA) for a Period of Two Years As And When Required 088/2015 Provision of Event Management & Logistical Marketing OTW Promotions & Events 28/07/2015 Project Rates Fixed Term Support Services for Johannesburg Roads cc Based Agency (JRA) Mayoral Event with Reference to Contract 005/2014 083/2015 Emergency Stormwater Construction on Surrery ID Wa Road Construction 17/07/2015 Project R3 312 386.00 Fixed Term Road-Ferndale Based August 2015 011/2015 Stormwater Management System Along Ballyclare ID Buzaphi Construction (Pty) 29/06/2015 Project R7 622 322.40 Fixed Term Road From Brynenven Primary School to Ltd Based Braamfontein Spruit 087/2015 Provision of Parking Facilities to the F & M AFHCO Property 28/07/2015 Project Rates Fixed Term Johannesburg Roads Agency (JRA) Management (Pty) Ltd Based 091/2015 Emergency Stormwater Projects in Randburg at ID Triakon Professional 07/08/2015 Project R1 507 774.94 Fixed Term 21 Hans Schoeman Street and the Shopping Engineering Services Based Centre in Malanshof 149/2015 Customer Satisfaction Survey for the Marketing Soleil Consulting (Pty) Ltd 12/08/2015 Project R1 060 100.00 Fixed Term Johannesburg Roads Agency Based 019/2015 Professional Services For The Design, Tender ID Jeffares & Green (Pty) Ltd 12/08/2015 Project Rates Fixed Term Documentation and Supervision of Gantries Based Including Directional Signs and Signal Heads Along Major Arterials Including the Motorways and Signalised Intersection on an As And When Required Basis for a Period of Two Years 092/2015 Supply, Delivery And Offloading of Road Marking Logistics Yahwee Shannah Trading & 12/08/2015 Project Rates Fixed Term

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CONTRACT CONTRACT TYPE OF CONTRACT DESCRIPTION BU SERVICE PROVIDER (S) START DATE END DATE AMOUNT (VAT NUMBER CONTRACT INCLUSIVE) Paint Using City Parks Contract Projects Based JCPZ/OPS/SDCB27/2013 Under MFMA Regulation 32 As And When Required 092/2015 Supply, Delivery And Offloading of Road Marking Logistics Joemann Construction & 12/08/2015 Project Rates Fixed Term Paint Using City Parks Contract Courier Services Based JCPZ/OPS/SDCB27/2013 Under MFMA Regulation 32 As And When Required 092/2015 Supply, Delivery And Offloading of Road Marking Logistics Qalabocha Industrial 12/08/2015 Project Rates Fixed Term Paint Using City Parks Contract Supplies Based JCPZ/OPS/SDCB27/2013 Under MFMA Regulation 32 As And When Required 092/2015 Supply, Delivery And Offloading of Road Marking Logistics Schick Services 12/08/2015 Project Rates Fixed Term Paint Using City Parks Contract Based JCPZ/OPS/SDCB27/2013 Under MFMA Regulation 32 As And When Required 092/2015 Supply, Delivery And Offloading of Road Marking Logistics Makhubs & Makhubs 12/08/2015 Project Rates Fixed Term Paint Using City Parks Contract Gardening Services & Based JCPZ/OPS/SDCB27/2013 Under MFMA Projects cc Regulation 32 As And When Required 092/2015 Supply, Delivery And Offloading of Road Marking Logistics Akisani Construction & 12/08/2015 Project Rates Fixed Term Paint Using City Parks Contract Projects Based JCPZ/OPS/SDCB27/2013 Under MFMA Regulation 32 As And When Required 092/2015 Supply, Delivery And Offloading of Road Marking Logistics Celadon Holdings 44 cc 12/08/2015 Project Rates Fixed Term Paint Using City Parks Contract Based JCPZ/OPS/SDCB27/2013 Under MFMA Regulation 32 As And When Required 092/2015 Supply, Delivery And Offloading of Road Marking Logistics Nwa – Nkomemi Trading cc 12/08/2015 Project Rates Fixed Term Paint Using City Parks Contract Based JCPZ/OPS/SDCB27/2013 Under MFMA Regulation 32 As And When Required 092/2015 Supply, Delivery And Offloading of Road Marking Logistics Mutiza‟s Trading & Projects 12/08/2015 Project Rates Fixed Term Paint Using City Parks Contract Based JCPZ/OPS/SDCB27/2013 Under MFMA Regulation 32 As And When Required

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CONTRACT CONTRACT TYPE OF CONTRACT DESCRIPTION BU SERVICE PROVIDER (S) START DATE END DATE AMOUNT (VAT NUMBER CONTRACT INCLUSIVE)

092/2015 Supply, Delivery And Offloading of Road Marking Logistics T-L-S-Z Business Enterprise 12/08/2015 Project Rates Rates Paint Using City Parks Contract (Pty) Ltd Based JCPZ/OPS/SDCB27/2013 Under MFMA Regulation 32 As And When Required 092/2015 Supply, Delivery And Offloading of Road Marking Logistics Kusini Holdings (Pty) Ltd 12/08/2015 Project Rates Rates Paint Using City Parks Contract Based JCPZ/OPS/SDCB27/2013 Under MFMA Regulation 32 As And When Required 092/2015 Supply, Delivery And Offloading of Road Marking Logistics Dinyeleti Trading Enterprise 12/08/2015 Project Rates Rates Paint Using City Parks Contract cc Based JCPZ/OPS/SDCB27/2013 Under MFMA Regulation 32 As And When Required 092/2015 Supply, Delivery And Offloading of Road Marking Logistics Megaphase Road Marking & 12/08/2015 Project Rates Rates Paint Using City Parks Contract Traffic Signs Based JCPZ/OPS/SDCB27/2013 Under MFMA Regulation 32 As And When Required Sept 2015 043/2015 The Construction of Repair Works on the M1 ID White Hazy Building 22/09/2015 Project R 71 967 031.13 Fixed Term Double Decker Bridge to Construction (Pty) Ltd Based 052/2015 Repair and Rehabilitation of Bridges ID Allasso Construction CC 22/09/2015 Project R 36 843 155.87 Fixed Term Based 037/2015 Construction: Reconstruction and Rehabilitation of ID Actophambili Roads (Pty) Ltd 20/08/2015 19/08/2018 R 19 909 103.04 roads in region D for three financial year Fixed term

049/2015 Implementation of Complete Streets in Diepsloot ID Letaam Building and Civils 22/09/2015 21/09/2017 R 6 925 872.25 Fixed term for the Period of two years CC 033/2013 Professional services for preliminary investigation, ID Smec South Africa 22/09/2015 Project R 4 671 755.00 Fixed term detail design and construction monitoring for the Based possible replacement of existing vehicular and pedestrian bridge and section of road on bridge street over the Klipspruit, Dlamini Soweto 169/2014 Appointment of Consultant For Professional ID Kabe Consulting Engineers 22/09/2015 21/09/2018 R 8 598 000.00 Fixed Term services for the upgrading of gravel roads to

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CONTRACT CONTRACT TYPE OF CONTRACT DESCRIPTION BU SERVICE PROVIDER (S) START DATE END DATE AMOUNT (VAT NUMBER CONTRACT INCLUSIVE) surface standards inclusive of associated stormwater in Tshepisong for the period of three years 118/2014 Services Delivery of Minor Plant AD-HOC Rental Fleet & Propact Plant Hire cc 20/08/2015 18/08/2017 Rates Fixed Term for Period of Two Years Plant 144/2014 Provision of Emulsion and Prime to the JRA FOR Logistics KPG Surfacing and Civils cc 20/08/2015 18/08/2017 Rates Fixed Term A Period of Two Years, As And When Required 075/2015 Construction of the BRT Concrete Boundary Wall ID Wa Road Construction 02/06/2015 Project R1 919 538.50 Fixed Term for Johannesburg Country Club Along Kingsway Based Avenue 080/2015 Emergency Stormwater Repairs in Killarney ID Wa Road Construction 28/08/2015 Project R3 859 592.00 Fixed Term Riviera and Houghton Based 106/2015 Emergency Stormwater Management in ID Nyoni Projects (Pty) Ltd 28/08/2015 Project R3 673 575.40 Fixed Term Grosvenor Road, Bryanston Based 090/2014 Supply & Delivery of Non- Metal Products to the Logistics Maverick Trading 59 cc 08/09/2015 08/09/2017 Rates Fixed Term JRA for a Period of Two Years, on an “As And When” Required Basis

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Annexure M Claims against JRA: 1st Quarter 2015-16

Date From Reason Amount Progress Comments 30-Jun-15 Glynnis Lincoln Open manhole To trace claim Report sent to Active AON, 10-Jul-15

30-Jun-15 Abueng Joyce Malakane Open manhole R400 000.00 Report Active outstanding from the Depot 01-Jul-15 Patric Wallet Pothole R5 068.35 Report sent to Active AON, 13-Jul-15

01-Jul-15 Stephen John Gouws Pothole R6996.00 Report Active outstanding from the Depot 02-Jul-15 Shanil Bharath Pothole R17582.40 Report send to Active AON, 15-Sept-15

02-Jul-15 Khuliso Monica Mathisa Pothole R2348.15 Ekurhuleni Matter Does not fall on our jurisdiction 02-Jul-15 Delsile Mahlalela Pothole To trace claim Report sent to Active AON, 13-Jul-15

06-Jul-15 David Kahn Open manhole R1 000 000.00 Report Active outstanding from the Depot 06-Jul-15 Mothibe Edwin Mothoagae Open Manhole R600 000.00 Report Active outstanding from the Depot 06-Jul-15 Molotsi Tryphina Open manhole R700 000.00 Report Active outstanding from the Depot 09-Jul-15 Waldo Maritz Pothole R20 183.77 Report Active outstanding from the Depot 09-Jul-15 Hudson Joni Leigh Injury due to R9500.00 Mogale city Does not fall on pothole our jurisdiction 10-Jul-15 Makhubele Rollen Open manhole R1 173 000.00 Report Active outstanding from the Depot 13-Jul-15 James Nelson Fell on Slipway To trace claim Emfuleni Does not fall on municipality our jurisdiction 14-Jul-15 Ortell Bramwell Albert Pothole R9964.55 Report Active outstanding from the Depot 14-Jul-15 Rachael Elsie Allatt Pothole R1578.40 Report send to Active AON 17-Jul-15 Jessica Gibbons Pothole R1 130.00 Report Active outstanding from the Depot 17-Jul-15 Khensani Nkuna Pothole R14 333.11 Report Active outstanding from the Depot 17-Jul-15 James Nelson Pothole To trace claim Report Active outstanding from the Depot 23-Jul-15 Linda Canca Pothole To trace claim Report send to Active

151

Date From Reason Amount Progress Comments AON 23-Jul-15 Edward Collins Pothole R16 957.73 Report Active outstanding from the Depot 29-Jul-15 Lionel Mashishi Pothole R1558.50 Report send to Active AON, 05-Aug-15

29-Jul-15 Juan Rudolph Cilliers Pothole R8262.28 Report Active outstanding from the Depot 29-Jul-15 Daniel Shmukler Pothole R3286.39 Report send to Active AON, 07-Aug-15

29-Jul-15 Ndlovu Josias Open manhole R850 000.00 Report Active outstanding from the Depot 29-Jul-15 Christiaan Du rand Pothole R1905.00 Report Active outstanding from the Depot 29-Jul-15 Adam Campbell Pothole R2473.40 Report Active outstanding from the Depot 29-Jul-15 Yusuf Nagdee Pothole R4710.00 Report Active outstanding 21-Jul-15 Rodney Green Pothole R385 052.32 Report Active outstanding from the Depot 30-Jul-15 Sarel Edward Els Pothole R8527.20 Report Active outstanding from the Depot 30-Jul-15 Sedley Leonard Shewitz Manhole R23820.00 Report send to Active AON, 11-Aug-15

30-Jul-15 Tyrone Hughes Pothole R2693.80 Report send to Active AON, 05-Aug-15

31-Jul-15 Tyrone Aidan jason van Pothole R2599.99 Report Active Lonkhuyzen outstanding from the Depot 05-Aug-15 Amanda Goddard Pothole R8781.49 No exact location Requested more information 06-Aug-15 David Parry Damaged R28 099.67 Report send to Active vehicle AON, 08-Sep-15

05-Aug-15 Pierre Henry Bemont Open manhole R3190.00 Report Active outstanding from the Depot 06-Aug-15 Gerrit Butler Pothole R3850.00 Report Active outstanding from the Depot 11-Aug-15 Raj Wanniappa Pothole R6974.69 Report send to Active AON, 13-Aug-15

11-Aug-15 Najeebah Noorbhai Pothole R76 001.95 Report Active outstanding from the Depot 11-Aug-15 Abass Motan Pothole R9933.50 Report Active outstanding from

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Date From Reason Amount Progress Comments the Depot 11-Aug-15 Garith Peck Pothole R25 706.79 Report Active outstanding from the Depot 11-Aug-15 Godfriedt Billett Pothole R 14 208.97 Report Active outstanding 11-Aug-15 Elisha Khanayia Pothole R36 193.21 Report Active outstanding from the Depot 12-Aug-15 Zane Mohr Pothole R21 886.83 Report send to Active AON, 17-Aug-15

12-Aug-15 Leigh-Ann Ellis Pothole R63 687.29 Report Active outstanding from the Depot 12-Aug-15 Magdeline Dlamini Pothole R183 180.01 Report Active outstanding from the Depot 12-Aug-15 Colleen Jill Kennedy Pothole R33 893.49 Report Active outstanding from the Depot 13-Aug-15 Cassim Noor Mohamed Pothole R3715.00 Report send to Active AON,18-Aug-15

17-Aug-15 Lazarus Mabunda Pothole R28 603.00 Report Active outstanding from the Depot 17-Aug-15 Edward Guy Charlesworth Pothole R1489.00 Report send to Active AON, 20-Aug-15

17-Aug-15 Filipe Alves Pothole R4491.00 Report send to Active AON, 16 sept-15

17-Aug-15 Lekau Phoshoko Pothole R3370.00 Report send to Active AON

18-Aug-15 Unathi Maxime Ntengo Pothole R3321.00 Report Active outstanding from the Depot 18-Aug-15 Christo Marnewick Pothole R450 000.00 Report send to Active AON,27-Aug-15

18-Aug-15 Nico van Der Walt Damaged R6543.60 Report Active vehicle outstanding from the Depot 24-Aug-15 Lee-Anne Kroef(Daniel Pothole R9202.04 Report send to Active Jacques) AON, 03-Sept-15

24-Aug-15 Seripe Zandi Innocent Open manhole R700 000.00 Report send to Active AON, 29-Aug-15

24-Aug-15 Sentle Lebogang Open manhole R700 000.00 Report send to Active AON 24-Aug-15 JH Olivier Pothole R9350.52 Not on our jurisdiction 25-Aug-15 Xulu Thabile Wilma Open manhole R950 000.00 Report Active outstanding from the Depot

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Date From Reason Amount Progress Comments 25-Aug-15 Tsotesti Mpontsheng Open manhole R700 000.00 Report Active outstanding from the Depot 26-Aug-15 Zina Langa Pothole R9756.00 No exact location Requested more information 26-Aug-15 Christopher Lucier Pothole R33 927.13 No exact location Requested more information 26-Aug-15 Kerry Lyn Williams Pothole R16 854.00 No exact location Requested more information 27-Aug-15 Segoe Manas Injury R400 000.00 No exact location Requested more information 31-Aug-15 Dragica Svicevic Pothole R4951.312 Report Active outstanding from the Depot 31-Aug-15 Delano Donovan Collins Pothole R10 904.10 Report send to Active AON, claimant informed 08-Spt- 15

02-Sept-15 M Ramakhula Pothole R6 222.38 Report Active outstanding from the Depot 02-Sept-15 Damian Morgan (Roschein Pothole Report Active Morgan) R29 419.15 outstanding from the Depot 02-Sept-15 D Gopee Pothole R28 343.11 Report Active outstanding from the Depot 02-Sept-15 Terrance Mabela Open manhole R260 000.00 Report Active Skwambane outstanding from the Depot 02-Sept-15 Martime Mashishi Open manhole R750 000.00 Report send to Active AON, 15-Sept-15

02-Sept-15 Bonisiwe Dlamini Open manhole RR350 000.00 Report Active outstanding from the Depot 02-Sept-15 Michael Ndebele Open manhole R350 000.00 Report Active outstanding from the Depot 02-Sept-15 Steven White Open manhole R12 675.10 Report Active outstanding from the Depot 02-Sept-15 N L Ntintili Open manhole NOT Report Active MENTIONED outstanding from the Depot 07-sept-15 MN Mpela Pothole R16 680.40 Report Active outstanding from the Depot 08-Sept-15 Tirane Mhanani mathe Open manhole R806 000.00 Report send to Active AON, 14-Sept-15

08-Sept-15 J Rubino Pothole R 38 772.38 Report Active outstanding from the Depot 08-sept-15 James Malinga Open manhole R400 000.00 Report Active outstanding from the Depot

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Date From Reason Amount Progress Comments 08-Sept-15 Bongani Khumalo Pothole R 2324.90 Report send to Active AON, 14-Sept-15

08-Sept-15 Nicholas Denny Nkuna Open manhole R100 000.00 Report send to Active AON, 14-Sept-15

08-Sept-15 Lerato Moloi Open hole R600 000.00 Report send to Active AON, 14-Sept-15

08-Sept-15 Mohammed Chodree Pothole R3620.00 Report send to Active AON, 11 Sept-15

10-Sept-15 Sharon Frank Pothole R 1092.45 Report Active outstanding from the Depot 15-Sept-15 Lucky Modisakeng Pothole R10 713.32 Report Active outstanding from the Depot 09-Sept-15 Domun Dhiresh Pothole R 3091.20 Report Active outstanding from the Depot 09-Sept-15 Trevor Millar ( Tracey Pothole R34 982.42 Report Active Millar) outstanding from the Depot 09-Sept-15 Sejakeng Sanna Baotsi Storm water NOT Report send to Active Esther Sithole drain MENTIONED AON, 15-Sept-15

14-Sept-15 Leon Glass Pothole R 10 828.00 Report Active outstanding from the Depot 14-Sept-15 Tebogo Moseki Iron Bar R5207.75 Report Active outstanding from the Depot 14-Sept-15 Thulisani Shabangu Pothole R8527.04 Report Active outstanding from the Depot 15-Sept-15 John Manaka Pothole R11 320.77 Report Active outstanding from the Depot 15-Sept-15 Telkom Damage to R37 092.54 Report Active cable outstanding from the Depot 15-Sept-15 Malene Zeonene Meyers Uneven R75 000.00 Report Active pavement outstanding 16-sept-15 LillianLebogang Monyatsi Pothole R28 746.10 Report Active outstanding from the Depot 16-sept-15 Somane Virginia Sekgopi Pothole R168 600.00 Report Active outstanding from the Depot 16-Sept-15 Nicholas Guy Wilton Damaged R3147.95 Report Active vehicle outstanding from the Depot 16-Sept-15 Kate Van Niekerk Pothole R15 863.48 Report Active outstanding from the Depot 16-Sept-15 Melusi Ngcobo Pothole R1985.70 Report Active outstanding from

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Date From Reason Amount Progress Comments the Depot 17-Sept-15 Chris De Beer Pothole R 10705.99 Report Active outstanding from the Depot 17-Sept-15 Yusuf Tilly Pothole R2990.00 Report send to Active AON, 21-Sept-15

17-Sept-15 Molly Nontuthuzelo Ndlovu Open manhole R300 000.00 Report Active outstanding from the Depot 23-Sept-15 Harmse Daniel De Wet Manhole NOT Report Active MENTIONED outstanding from the Depot

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