State of the District Address by the Her Worship Executive Mayor of the Amathole District Councillor Nomasikizi Konza

Honourable Speaker of Amathole District Council: Councillor Samkelo Janda The Chief Whip of Council: Councillor Sandla Mtintsilana The Chairperson of the Municipal Public Accounts Committee: Councillor Nanziwe Rulashe Esteemed members of the Mayoral Committee Councillors of Amathole District Municipal Council Chairperson of the Board of Directors of Aspire: Dr. Mbuyiseli Mkosana and the Chief Executive Offi cer: Phila Xuza Members of Amathole District Executive led by Municipal Manager: Chris Magwangqana Leadership from various political organisations Traditional Leaders Distinguished guests Ladies and gentlemen

Ewe kakade lento yinto yalonto Sibona kamhlophe sithi bekumele Sitheth’engqondweni sithi bekufanele Xa bekungenjalo bekungayi kulunga Ngoko ke, Sotase! Kwaqal’ukulunga!

These are the words of one of Amathole District sons of the soil, utata uSamuel Edward Krune Mqhayi, born in Alice in 1917, when he was lamenting on the sinking on the Mendi ship.

A dark period in our history which then marked fateful moments of disasters for our nation as people lost their lives fi ghting a war that wasn’t theirs.

Together with the University of Fort Hare and Umhlobo Wenene FM, our fi rst SEK Mqhayi Language Conference we held resolved that we must promote isiXhosa as a national language and establish both an Institute and a Literature Museum.

This is why in our Communication Strategy there is strong emphasis on using community radio; and isiXhosa as the fi rst choice medium of talking to our people.

This afternoon, manene nani manenekazi, when I look at the plight and state of our beloved District, I can’t help but liken the period that we are in as that of ukuzika kwenqanawe ethwele amathemba abantu bakuthi.

State of the District Address Amathole District Municipality

Page 1 It’s a period of sadness and despair, charectirised by low levels of morals and respect for life and human dignity. We are being confronted with harsh realities of the scourge of HIV/Aids; the abuse of the most vulnerable in our society including women and children; and the lack of respect for the elderly. These people make up to 54 percent of the total District population.

Yiyo lonto ke siye sathabatha iinkokheli zomthonyana kunye nabefundisi belizwi kulommandla walapha eMathole; sabadibanisa phantsi kwephiko leMoral Regeneration Movement ekhokelwa ngumfundisi uMabhuti Paul...sabanika uxanduva olukhulu lokuzama ukubuyisa isidima nembeko somntwana oMnyama.

Mandithathe elithuba, ndamnkele abantu bakuthi nabaphula-phule bebeke ithemba kumaziko osasazo akweli leMpuma Koloni ngokubanzi.

Abo bamamele kwi Khanya FM eGcuwa neziphaluka; iVukani FM eCala neziphaluka; iFort Hare FM eDikeni neziphaluka; iMdantsane FM apha eMonti neziphaluka.

Ndiphinde ndenze njalo ndamkele wonke umntu osiphulaphule kuMhlobo Wenene FM nolindele ukuba sidandalazise umbono kwaye sinike umkhomba-ndlela ngexabiso lakhe kuMasipala.

Ngale njikalanga sizokuwisa intento malunga noqingqo-mali, kunye nezona njongo zenguqulelo esinazo ezifana nobhaliso lwabahlelekileyo; Isindululo; Uluhlu lweerhafu kunye namaziko oNcedo lwabasebenzisi beeNkonzo zikaMasipala.

This State of the Amathole District Municipality Nation takes place during a signifi cant year in the history of our country; the Centenary of the ruling party, the African National Congress.

It is taking place as we welcome the Centenary fl ame in our District and indeed it is an honour for me to be addressing you in the presence of such a symbol of unity, perserverance and triumph; and in that spirit allow me to single out and salute those who led the ANC as Presidents... John Langalibalele Dube, Sefako Makgatho, Zac Mahabane, Josiah Gumede, Pixley ka Isaka Seme, AB Xuma, JS Moroka, Chief Albert Luthuli, Oliver Tambo, Nelson Mandela, and Jacob Zuma.

The week long celebrations of this momentous occasion started in Ngqushwa Local Municipality where we unveiled the grave of the late comrade Duncan Pikoli. A man who refused British citizenship and despite not being allowed to come back home, made it his wish that his remains be buried in his home.

Further signifi cant celebrations include the memorial lecture of Pixley ka Isaka Seme delivered by President Jacob Zuma in Nkonkobe Local Municipality yesterday. Today we are celebrating the life of stalwart Nontsikelo Albertina Sisulu with a symposium in Amahlathi Local Municipality.

As the Amathole District, we take pride in our plans to record; re-narrate the underground military experiences through our project The Armed Struggle Living Museum.

Having been chosen to be part of the National Heritage Liberation Route; the Armed Struggle Living Museum is the embodiment of the culture, concept, and essence of the underground military struggles derived from the formations of the uMkonto Wesizwe, Azanian People’s Liberation Army and later the Azanian National Liberation Army encapsulate. We have set aside R1, 3 million to re-emulate and replicate the underground military camps into a living museum of consciousness.

Already a business plan and research has been completed. This will be an anchor of social cohesion, nation building and economic development. It is also set to be a national healing centre for military veterans who need counselling services.

State of the District Address Amathole District Municipality

Page 2 We are rehabilitating a number of heritage sites of our struggle heroes like Duncan Pikoli, Z.K Matthews house, the DDT Jabavu house and developing the heritage route and signage in the amount of R 2, 1 million.

The ADM has continued with the process of Repatriation of Heritage Property and we successfully started the process in the last fi nancial year. As a result, an agreement is expected to be concluded with Lesotho during the end of the fi nancial year.

Through the Oral History Collection programme, the municipality embarked on a district-wide oral history collection with the aim of recording and documenting the memories of various people within the district to various aspects of social, political, historical and cultural issues. An amount R100 000 has been utilized for such.

A Catalogue on the District Liberation Route Summit has been developed during this year of reporting. This is aimed at demonstrating our continued drive not only to celebrate our liberation victory but also the capacity to recognize historical landmarks that contributed to our political freedom.

Although Land Restitution is a national competency, we have since managed to form part of the Settlement Agreements which are aimed at restoring land rights to persons or communities dispossessed of such rights after 19 June 1913 as a result of past racially discriminatory laws.

In this regard, the conclusion of such agreements made Amathole District Municipality to be an implementing agent and we are pleased to announce successful land rights claims despite some ongoing disputes.

In line with the Freedom Charter that states “There shall be houses, security and comfort” as well as Section 25 of the Constitution that recognizes the right of access to adequate housing; we have made strides in the human settlement development.

The ADM has developed an Integrated Housing Development Strategy to ensure District wide co-ordinated delivery of housing for our seven local to perform their housing function effi ciently and effectively.

Furthermore, the ADM took the initiative of complying with the Housing Policy and Legislation by lodging an Application for Accreditation Level 2 on Housing Programmes. In paving the way for such added responsibility, the ADM has started to embark upon a human resource capacity assessment exercise, whereby the outcome will inform how the Housing Business Unit should be structured.

Various initiatives linked to spatial planning have been embarked upon so as to harmonise the municipal space in a corrective forward planning. These include the Zone Plans in Mnquma, Mbashe, Nkonkobe, Ngqushwa and Nxuba being developed to a total amount of R2 million.

Somlomo;

It is becoming crystal clear that – through its gains and by advancing Education, Health, Job Creation and Rural Development - this country and in essence, our beloved District in the hands of the African National Congress is in capable leadership.

Kucace gcaa ukuba lombutho oosimelele ngqindilili ngembumbano kanxantathu weSouth African Communist Party neCOSATU; usinika uMkhomba-ndlela negunya lokuba sisebenzise i-Freedom Charter ngendlela emsulwa nefanelekileyo yokuhanjiswa kweenkonzo.

State of the District Address Amathole District Municipality

Page 3 Xa namhlanje sibhiyozela imini enkulu ye-Africa Day; sithi ayikho eyonandlela yokwenza njalo eyodlula ukuba siqinisekise ukuba iimfuno zabahlali ziyaphendulwa.

Yiyo lonto sengene phantse zonke iilali kweziveki ziphelileyo sikwi-IDP and Budget Roadshows. Sizimisele kwimisebenzi yenguqu ngokuxabisa abangathathi ntweni sibanike isidima nentlonipho. Ayikho indlela eyodlula ukuba uluntu lonke lusixhobise kwaye luthabathe inxaxheba kwimisebenzi yalo masipala.

My fellow councillors;

We have produced a Metropolitan City in Buffalo City Metropolitan Municipality and we are more than determined to create another Metro in the seven local Municipalities that are within our District. Since its establishment in 2005, our Developmental Agency Aspire has positioned itself as a “trusted advisor, stimulator and partner in the regional economic environment”.

We also would like to welcome the recently appointed Board of Directors.

The initial funding for operations has been R5 million for three fi nancial years and escalated to R11.4 million in 2011/12 to R15 million for 2012/13 fi nancial year.

Our agency has received Neighbourhood Development Grant of R64 million from the National Treasury as well as Leverage Funding of more than R300 million.

Allow me therefore to be explicitly analytical in my report on plans and programs achieved with emphasis on our concept of Small Town’s Regeneration project by town and roads corridor:

But before I start with the road corridors and town development; let us welcome further improvements of the national roads in the Province, which includes the section of the road between King William’s Town and Grahamstown, between and Mthatha, as well as further investments in our roads infrastructure as announced by Roads and Public Works MEC Thandiswa Marawu.

Back to our plans on the N2 Corridor.

Changing the face of Butterworth

• upgrade of the CBD reached completion in November 2011. The project included: the installation of streetlights, the closing-off of the portion of Blythe Street and transforming it into an informal trading area; the paving and curbing right throughout the main road and the construction of the ablution facilities for the members of the public.

• A festive handover ceremony that included the switching on of Christmas lights to Mnquma Local Municipality took place on the 13 December 2011. A hand over agreement including all project related documentation was signed by Aspire and Mnquma local municipality. The handover agreement includes a maintenance plan and commits Mnquma, from the date of signature, to take full responsibility for the newly created assets.

• For the Gcuwa Dam development, the Mnquma Local Municipality made an amount of R3m available to partner and support the outcomes of the technical studies performed by Aspire. This node is positioned as an entertainment and leisure development node and private sector interest is to be arranged.

• A draft Butterworth Local Spatial Development Framework has been developed and will be presented to Mnquma Local municipality for approval before proceeding with public consultations.

State of the District Address Amathole District Municipality

Page 4 • Further planning work will be undertaken to strengthen the concept of the Ibika Industrial Park.

• In cooperation with the Development Corporation, bamboo has been identifi ed as an alternative crop for the N2 corridor area. Investigations have been made and a potential site for a trial of 100 ha of bamboo for intercropping with maize and cattle herding has been identifi ed at the outskirts of Butterworth town. A technical study on bamboo will be concluded by the end of June 2012.

Moving on to the Dutywa Regeneration

• Two different forms of Aspire led interventions have been prioritised: namely the assessment and improvement of the Mbhashe municipal systems towards the improvement of an increased revenue collection; and

• Secondly; the development of business plans to motivate for funding for an upgrade of the Dutywa CBD and the development of a commercial and community orientated precinct in Dutywa town.

On the Friendly N6 Corridor;

Our plans for the Regeneration are

• The construction of the Cumakala Bridge and access road including uniquely designed street lighting and a foot path to Mlungisi has been completed and will be offi cially handed over on the 09 June 2012 to Amahlathi Local Municipality.

• The construction of the Mlungisi Community Commercial Park is well underway; the building is shaping up and more than 100 temporary jobs have been created during construction. Lease agreements have been signed with local businesses such as supermarket, hardware stall, pharmacy and restaurant. The South African Post Offi ce, the Police, Department of Sports, Recreation, Arts and Culture have re-confi rmed their commitment and lease negotiations are underway. The cooperation with the national NGO Love Life has strengthened. Various consultations with local businesses have taken place to ensure small business participation in the park’s concept.

• The construction of the Stutterheim Central Business District is nearing fi nalization. The town’s appearance and functionality is starting to change with the newly expanded taxi rank, brick pavements, new street lights, the introduction of a public square and general improvements. Informal trading stalls have been designed in consultation with informal traders and 60 stalls being constructed in Stutterheim by a local manufacturer. Informal traders have established the Stutterheim Informal Traders Association and have expressed their interest in becoming a key stakeholder in the management of the stalls. More than 70 temporary jobs have been created during construction.

• Land approval was obtained for the former Caravan Park in Stutterheim enabling Amahlathi Local Municipality to seek public and private investment for the development of the open land.

State of the District Address Amathole District Municipality

Page 5 The Regeneration

• A Local Spatial Development Framework for Keiskammahoek was adopted by the Amahlathi Council in December 2011. Besides strengthening the concept of the agro-produce market, sports development has been identifi ed as a potential intervention. The development of a funding proposal for sports development in Keiskammahoek is underway.

The Abenzi Woodhouse

• Currently 39 young people are benefi tting from the training provided in basic and advanced wood making skills. The launch of the production unit took place on 01 December 2011. A new Board of Directors for Abenzi Woodhouse has been nominated. New staff members have been appointed to strengthen the business through the appointment of a Centre Manager and Production Manager. We are proud to say that the Abenzi Woodhouse is emerging as an independent business entity. Several orders have been placed to Abenzi and the production unit is gearing up to fulfi l the orders.

The Keiskammahoek blueberry large out growers

• 6 hectares of blueberries have been planted at Upper Gxulu in Keiskammahoek.

Work started on the next 3 hectares, which is expected to be completed by end of June 2012. Currently 32 people are employed from Upper Gxulu community for the construction thereof. One additional private land has been identifi ed and one more additional land needs to be secured. Cooperation with the Agricultural College at Fort Cox is intended.

The Amabele / Ndakana Village Development

• The intention is to develop Amabele village into a rural service and production node. Work is underway to obtain the necessary approvals to proceed with the planned berry processing facility and infrastructural developments at Amabele. The fi rst draft layout for the Amabele village is available.

• The Ndakana agro-ecological cooperative is operational and agricultural management support is provided through a technical partner. Around 80 households will benefi t.

• SA Bamboo Pty Ltd has planted 5 hectares of bamboo in September 2011 and has secured further funding for another 100 hectares. Through Aspire, we assisted in securing land to enable the expansion of the bamboo plantation.

• Work is underway to develop high value pomegranates and stone fruit on at least 50 hectares of old irrigated land in Ndakana. Funding proposals have been submitted to the Department of Rural Development and Land Reform and Aspire is facilitating access to communal land.

• The Ndakana Development Trust is established with the ultimate aim to administer all local developments. Contact is being established with SEDA to provide hands on business support.

Working together in the year of action; these are the interventions that we are making in the R63 Corridor.

State of the District Address Amathole District Municipality

Page 6 Alice Regeneration

• A stakeholder engagement session for the Alice Regeneration Programme is planned with the aim to further strengthen the cooperation of key partners such as UFH, Lovedale College, NEDA and Nkonkobe Municipality, fi nally resulting in the signing of a cooperation agreement.

• The town Centre upgrade has reached the detailed planning stage to prepare for construction. Consultation meetings to confi rm the proposed designs are underway with Alice residents, businesses and taxi association.

• A business plan for the upgrade and management of sports facilities in Alice is available and will be submitted to potential funders.

• The release of public owned land by the Department of Public Works and Roads has started and Aspire is monitoring progress.

• Citrus Processing has been identifi ed as the main corridor intervention along the R63 corridor. A citrus sub-sector study has been completed and the focus will be placed on three main interventions:

- Establishment of an agro-hub. - Establishment of a citrus support unit. - Branding of agro-products in Nkonkobe.

Essential Amathole

• In March 2012 Essentials Amathole obtained the fi nal go ahead for R8.7 million by the Department of Rural Development (Employment Creation Fund) for the expansion of its production. About 10 hectares of essential oils have so far been planted in Hogsback providing 23 permanent jobs.

Distinguished guests;

On the R72 Corridor;

The Hamburg Regeneration

* The detailed design phase and Environmental Impact Assessment for the Hamburg town Centre construction is underway. Meetings with local end users such as the Keiskamma-Trust have successfully been held. There is a strong focus on ensuring the inclusion of ecological principles in the fi nal designs.

* The Department of Public Works and Roads confi rmed the release of state owned land for the Hamburg regeneration programme to Ngqushwa Local municipality.

* The Environmental Impact Assessment application for a boardwalk and beach upgrade is underway.

State of the District Address Amathole District Municipality

Page 7 The Hamburg Artist Retreat

• The construction of the Hamburg Artists Retreat is well underway and still on target to be completed by July 2012 and offi cially be opened by September 2012. The contractor has started with the fi nal fi ttings such as wardrobes, kitchens and wall paints. On average 50 people were temporarily employed during construction phase.

• The concept of the Artist Retreat obtains more and more buy in and a good relationship has been established with the Grahamstown National Arts Festival were further marketing of the Retreat will take place. The fi nalization of the business and operational model is underway.

• Operational kick-start funding has been secured from the Local and Regional Economic Development fund administered by the ECDC to the amount of R2m.

• A brand development process for the Retreat has started.

Two successful community and artist involvement events took place in March and have further made the Artist Retreat known to the public.

Council Speaker;

Between 2009 and 2011, the Eastern Cape experienced an economic growth trend similar to that of the rest of the country.

However, compared with the severity of the economic recession elsewhere in the world, the Gross Domestic Product (GDP) fi gures show that over this period the real decline in GDP in the Eastern Cape was less severe than estimated.

Figures released by Statistics in the fourth quarter indicate that unemployment in the country has decreased from 25% to 23.9% as a result of new jobs created, and that during 2011, a total of 365 000 people were employed. For the Eastern Cape, the level of unemployment decreased from 29.9% to 27.1%, which, needless to say, is still high.

In Amathole District, in particular, more than half of the population is still categorized as poor in the second-largest economy in the Province.

In order for us to confront poverty head on and succeed, there needs to be a paradigm shift in how we move forward as an institution. If this is to be the year of action, then we must act now and act decisively.

We are coming from a very successful and emotionally rewarding Investor Conference held on April 25 and 26. Coming out clearly from the national and international investors conference, was that agriculture and tourism are two of the most viable economic sectors to be developed in our area.

This is in line with the Provincial and our own Growth and Development Strategy.

Thus we can’t continue and operate normally when Agriculture - which should be a key driver in a rural economy like ADM - only contributes 3 percent to the Gross Domestic Product (GDP).

We are characterized by the abundance of natural resources namely land, natural beauty, a pristine coastline, political and cultural heritage; and yet despite these natural endowments, large sections of our people still do not meaningfully participate in the economy.

State of the District Address Amathole District Municipality

Page 8 Unemployment and its accompanying poverty characteristics are dominant and unacceptably high at almost 50% of the district population still in poverty in 2010.

The government is the biggest employer contributing to 42 % of all jobs of the total number of 94 808 people employed in ADM in this period. This represented about 10 % of all the jobs in the Eastern Cape. Trade is the next best performing sector creating 18% of jobs in the district.

It is based on this that we have decided to take a bold political step to make Economic Development a key sector by making available from the ADM reserves an amount not exceeding R30 million to fund agricultural and tourism projects.

R5, 3 million of this will be used for the unfunded mandates which include the Chairperson of MPAC as a full time councillor, the appointment of Traditional Leaders, and the cost of creating a new Department of Legislature and Executive Support Services.

Using the Tourism Master Plan, we will advance even further our plans on the Amatole Mountain Escape Tourism Route where, together with the Eastern Cape Tourism Board, we established the Amathole Mountain Escape Tourism Route.

The route covers the areas that form part of the Amathole Mountain range as part of eco-tourism and it includes three municipalities, Nkonkobe, Nxuba and Amahlathi.

As part of this route we were able to develop further projects like the mountin road between Balfour through to via and Post Retief. We have also managed to enhance mountain biking and hiking trails. Rock-climbing sites were identifi ed and developed for rock-climbing and abseiling at Hogsback and Fort Fordyce and a website was developed to pomote these sites.

A need to develop craft centres was identifi ed for purposes of providing shelter. ADM facilitated the development of Craft Centres within the route, one in Cathcart which includes a Tourism Information Centre and another in the Doubledrift Game Reserve. Other craft shelters have been built in Morgan’s Bay and .

The Bawa Falls, situated approximately 9 km south of Butterworth, is a beautiful natural waterfall that is unspoilt and set in a valley with diverse species of fl ora and fauna. It is called the Bawa falls.

It is currently being used by tour operators as an attraction for one day tours and in the long term the plans are to have activities which will encourage tourists to stay overnight.

The Bawa Falls was developed as a tourism project targeting the backpacker tourism market. The project included the establishment of Conference Facility, Restuarant Backpacker Accommodation, Information Kiosk, Picnic Area and a Hiking Trail with Resting Places. An amount of R 1 million has been set aside for the project and is being utilized , notwithstanding the challenges linked to social issues.

Other areas of important note on tourism are around the training of tourism practitioners; capacity building for women to participate in tourism; awareness programmes and support for local tourism organisations.

The ADM has and needs to further continue to market itself as a tourist destination and have accordingly developed marketing material such as brochures and a documentary.

State of the District Address Amathole District Municipality

Page 9 We have exhibited at the National Tourism Indaba taking along 7 emerging product owners to market themselves at our stand.

Research shows that Tourism events are more successful in boosting economies and an amount of R1,5m was set aside for events like Christmas in July which is held in Hogsback; the Bedford Garden Festival; the ADM Tourism Imbizo and Expo Show; Festivals and the The Craft Mania.

The Mayor’s challenge, which is an annual event aimed at promoting eco-tourism, involved a hike along the Amathole Mountain Escape and Maqoma Hertage Route.

Sports Tourism has continued to be taken forward and in this fi nancial year Boxing as a sport will be supported. This was evidenced in the areas of Mbashe and Mnquma Local Muncipal areas. This is aimed at promoting and branding the District as a sport destination of choice. Up to R400 000 has been set aside for marketing the District.

The ADM through the Business Enterprise function has since achieved various Programmes in terms of SMME Support and other related Programmes which include:

• Butterworth SMME Incubation Centre Equipment for R 150 000 • Alice Incubation Centre Training of benefi ciaries amounting to R500 000 • The SMME Enterprise Development Support Programmes Programmes in the form of roadshows, training, information session and exhibitions totaling at R 400 000,00.

The agriculture sector interventions undertaken by ADM in addressing food security concerns and economic development are focused on the following issues:

• Poverty alleviation and food security • Livestock improvement • Irrigation schemes; and • Establishment of cooperatives

The district has the highest number of livestock in the Eastern Cape and is thus an important sector in the economy of the region

In Mnquma Local Municipality, Zibhityolo 150 goats (10 Rams and 140 Ewes) improvement were purchased for the community to an amount of R215 million, to such an extent that currently 70 Lambs have been born. This is aimed at carcass weight towards food security and local economic development.

Our food security projects are at a cost of R1 million.

In terms of ADM’s policy, if a household earns less than two times the government social grant, they qualify to register as an indigent (currently R2 200) per month. From this consumers get 6kl free water a month, Pay no basic water charges; Don’t pay fl at rate charges; Pay no water or sanitation connection fee; Pay reduced water deposit fee; VIP and Bucket clearance is for free and there are no No charges for fi re services

Fire levy where fi re services are readily available are R15.88 for domestics and R21.18 for non domestics.

These are applicable for: Dutywa, Butterworth, , Cintsa & Peddie. The Fire availability fee where reaction time is greater than 30 minutes at a cost of R10.59 for domestics and R15.88 for non domestics.

State of the District Address Amathole District Municipality

Page 10 After careful consideration and various inputs, we will be applying a monthly basic charge water tarrif of a 5,9% increase. The Water Flat Rate of Unmetered Water Users is also at a 5,9% increase. The same percentage of a 5,9 % increase applies to Sundry Water Charges. Sundry Water Charges are also at a 5.9% increase

Council Speaker;

We welcome the announcement by Honourable Edna Molewa, Minister of Water and Environmental Affairs on 16 May 2012 regarding the proposed Foxwood Dam site which lies on the Koonap River, running through Adelaide.

The detailed feasibility planning is underway and in terms of the Ministry’s current programme, the project could deliver water by 2018. The current estimate for the project is R200 million.

The Amathole and OR Tambo Districts are amongst the 23 priority District Municipalities in the country identifi ed during the July 2011 Cabinet Lekgotla.

The Department of Water Affairs and COGTA are responsible for providing hands-on support. We are also pleased to be working together with the Department of Science and Technology and the Council for Scientifi c and Industrial Research (CSIR) to develop and implement Safe Water House pilot projects to three villages namely Mbelu, Cwele and Ntilini.

We are having lots of challenges in bringing clean drinking water to our communities – including topography and bad roads.

Very importantly, there is a huge funding defi cit of R1.1 billion to meet the National Water Services eradication target by 2014. This is despite the fact that we have been having 100 percent spending of Municipal Infrastructure Grant funds of our Water and Sanitation projects in the previous fi nancial years.

In a District where 97,7 percent of the population is black African we cannot expose our people to drinking water with animals from rivers and dams or utilise the bucket system.

During this current fi nancial year, the Project Management Unit is implementing 54 water and sanitation related projects which are spread out in 7 local municipalities respectively as part of ADM’s powers and functions of being the Water Services Authority.

One of the biggest challenges facing the MIG programme is the poor performance of Service Providers we have appointed. We are fi nalizing the pre-qualifi cation to be used during the appointments of contractors and this will assist in eliminating service providers that do not have expertise and experience.

About three years ago the ADM Council endorsed a new initiative to be used in implementing all the sanitation projects called Accelerated Sanitation Programme (ASAP) as the vehicle to deliver services.

This included the establishment of a manufacturing factory within the district, which is very successful in delivering as per agreement. However the implementation of sanitation projects through ASAP is moving very slowly than anticipated. This is due to the issue of our capacity to monitor the project as this is done internally without any assistance from service provider.

After the three years of serious drought experienced in 2008-2010, we have learnt valuable lessons and have set aside R78.55 million from own internal reserve funds to develop Special Water Security Initiatives. The ADM has also embarked on a process of Water Conservation and Water Demand Management.

State of the District Address Amathole District Municipality

Page 11 This is why we have embarked on a Safe Water Programme where our Engineering and Health and Protection Services Departments worked closely together to identify all villages without water up to RDP.

The 5 Year Strategic Document for the ADM Water Services called Water Services Development Plan has been developed for the next 5 years and it forms part of the institutional plans in the current IDP to be adopted

Severe infrastructural backlogs have been inherited and constitute a major service delivery challenge within the ADM area. These include, but are not limited to:

• Water

As at July 2011, approximately 31 849 people living within the district had been connected to an RDP level of service (an equivalent of 25 litres per person per day, within a maximum of 200 metres walking distance). The backlog has been reduced by 1 056 households (approx. 6 336 people) as of March 2012, and

• Sanitation,

As at July 2011, approximately 19 183 people living within the district had access to an RDP level of service like waterborne sewerage for the fi rst time. The backlog fi gure has been further improved by 2 520 households which is approximately 15 120 people as of March 2012.

Our infrastructural projects for water and sanitation amount to R 300 million and our key projects are the:

• Ibika, Mcwasa and Xhora Bulk Water schemes. • desalination of sea water – drought Intervention. • Butterworth and Adelaide Water Re-use projects. • Accelerated Sanitation Programme.

In Nxuba Municipality, the Adelaide and Bedford Bucket Eradication Programme is under construction and is due for completion in August 2012.

We are spending R15,5 million to construct and connect water and sewer reticulation networks, rehabilitate existing toilets, building of new toilets and the installation of water meters in Bedford. Also due for completion by the end of August is the Upgrading of Adelaide Waste Water Treatment Works to the amount of R21,6 million.

Completed in April to the cost of R 6,7 million is the Remedial Works to the Fish River Pumping Scheme (FRPS) and Koonap Canal to ensure that two of the main sources of water for Adelaide and Bedford operate as effi ciently as possible and to limit water losses.

The sub total of our Municipal Infrastructure Grant in Nxuba including new still to be registered projects to MIG is R19 million.

In Nkonkobe Municipality we are spending R30, 4 million to provide the communities with a reliable water source at RDP Standards from Alice. The project will serve 19 Villages in West Victoria East and consists of bulk supply mains, pump stations, internal reticulation and metered communal standpipes. This project which includes the Extended Public Works learnerships is due for completion in July 2012.

State of the District Address Amathole District Municipality

Page 12 We are also supplying water to RDP standards to 2 villages in the rural areas of Seymour and Balfour and equipping backup bore holes to some of the other 9 villages already provided with water supply. This project is due for completion in October at a total budget of R8, 3 million.

Despite challenges we are still determined to fi nish the Bhofolo and Newtown Bucket Eradication project whose budget is R10,5 million.

Fort Beaufort has been experiencing a number of challenges with its water supply. This has resulted in certain areas not receiving any water supply in the Bhofolo township.

We have made available funding amounting to R6,3 million to try and address the short-term problem with water supply. The medium to long term will be address through MIG funding which we still need to apply for.

The sub total of our Municipal Infrastructure Grant in Nkonkobe including still to be registered projects to MIG is R38, 5 million.

In Ngqushwa Municipality, the sanitation project to the rural areas in Ward 12 is under construction with a total budget of over R4 million and is scheduled for completion in September 2012.

The sub total of our Municipal Infrastructure Grant in Ngqushwa including still to be registered projects to MIG is R26, 1 million.

Our infrastructural projects in Mbashe Municipality include Mncwasa Water Scheme with a total budget amount of R14 million. The scheme will be supplying about 62 rural coastal type villages with an estimated population of 36 742 with water. It also includes the dam construction and the treatment works. The project is running in phases and is about 65 percent complete with the fi rst phase due for completion in December 2014.

The Mbashe North Water Scheme will provide water services to over 37 thousand people located in 77 villages in seven Wards of the Dutywa town.

The Dutywa East Water Scheme will provide water services to 30 villages with a total population of 32 943 people from 5 491 households. Further to this, the scheme will provide for the bulk supply to a further 21 villages with over 12 thousand benefi ciaries in the neighbouring Bende Water Scheme, giving a total of 45 thousand benefi ciaries from 7 570 households. This has a total budget amount of R 83 million.

The Qwaninga surface water supply has been constructed in 5 phases to service up to 46 villages with phase 4 due to start in October 2012 with a total budget of R4 million.

The Xhora Water supply has been budgeted a total amount of over R25 million to provide basic domestic water supply to 26 609 people in 59 villages.

In Mgwali South, we will be utilising a total amount R52,6 million to supply water to communities. The sub total of our Municipal Infrastructure Grant (MIG) in Mbashe including still to be registered projects to MIG is R125 million.

In MNQUMA Municipality we are supplying water to villages with a total budgeted amount of R 44,1 million.

In Ehlobo, Mgcwe and Zingqayi, we are providing water supply to villages at cost of R 68,7 million in Bulk schemes to villages and additional villages have been identifi ed along N2.

State of the District Address Amathole District Municipality

Page 13 The Crouch’s Bush Water Supply Project to the amount of R 48,7 million is supplying to villages like , KwaMdange, Jojweni, Nyumada, Qombolo, Mnenemba, Lambasi, KwaVuso, Komkhulu, Mnqalasini, KuManyube and Sezela.

The Myoyo Water Supply Project which has a budgeted amount of R 42,3 million is earmarked for villages like Xhobani, eSijungqwini, Hlangani, Thembani, Mantetyeni and Kwa-Thala.

We will be spending over R 159 million for the Ibeka Water Supply to villages that include Cilo, Msintsana, Kwa-Lubobo, Jebe, Lambasi B and C, Ngunduza A and B, Mahlathini and Qumbulana.

We have completed the Teko Housing Project to the amount of R17,1 million for the provision of roads, sanitation and water at Rarayo, Nkelekethe and Teko Springs.

Phase One of the Ngcizele Water Supply Project in Nontshinga Village was completed in October 2011 and Phase 2 in surrounding villages is at a design stage for villages like Tafeni, Msikaba, Ngcizele, Debese at a total amount of R 17, 2 million.

The ADM is also investigating additional boreholes to supplement the Tyinirha river.

The sub total of our Municipal Infrastructure Grant in Mnquma including still to be registered projects to MIG is R133 million.

In Amahlathi Municipality, the Water Treatment which includes Maqhobhokeni Village is under construction with an amount of R2,2 million.

The contract for the reticulation of 6 Bulk Villages in Keiskammahoek which are Lower Ngxalawe, Phumlani, Khayelitsha, Bumbane and Peters Farm is under construction.

The Gubevu sanitation project which includes Mbaxa and Mxhalanga villages is under construction with a budget of R1,7m.

The upgrading of the bulk water supply in Stutterheim with a total cost of R 9,6 million is in its fi nal month of completion as I speak.

In the Tsomo Water Supply Project, the following villages are being handled under the contract of the Chris Hani District Municipality. They are eJojweni, Cenyu, Kensington, Mchewula A and B, Magwatyuzeni and Luxomo and they will be completed by end of September 2012.

The ADM has appointed a contractor to work in the following villages: Ngxalawa B, Matolweni C, Fubu, Moyeni A, KwaMfula A, KwaJack A and B and Xoloba. The projects will be completed by end of February 2013.

The sub total of our Municipal Infrastructure Grant in Amahlathi including unregistered projects is R33, 9 million.

In Great Kei Municipality

We have a budget of R5, 5 million for the Komga commonage settlement services and R3 million for the phase 1 of area wide sanitation projects.

The sub total of our Municipal Infrastructure Grant in Great Kei including new still to be registered projects to MIG is R133 million. These include the new Waste Treatment Works for Morgan Bay at a cost of R1 million and the Kei Mouth Reticulation.

State of the District Address Amathole District Municipality

Page 14 Council Speaker;

With regard to emergency preparedness and response, the ADM has developed contingency plans for the seven Local Municipalities within its area of jurisdiction. The contingency plans are for fi res, fl oods and storms.

In terms of Health and Protection Services as part of our plans to capacitate and resource Disaster Management Centres in our district, we will, together with the Department of Local Government and Traditional Affairs, open a state of the art Disaster Management Centre to the value of R5 million in the next few weeks.

The Satellite Fire Station in Centane worth R1,2 million that we offi cially opened in July 2011 is of great value to that community. For this Fire Station as well as the one in Chintsa, we have refurbished and allocated two fi re engines to the value of R1,5 million.

Our plans towards providing effi cient and effective fi re services are well on track in Kei Mouth with the foundation phases towards building of a Satellite Fire station with R1, 2 million being injected by the Department of Local Government and Traditional Affairs and over R1 million from our projects. In Willowvale, we have fi nally secured a site through the Mbashe Municipal Council and we are making provisions of R1, 5 million to build a Satellite Fire Station.

Towards the end of next month, we are expecting delivery of the second of our new fi re engines to the value of R4, 5 million.

In terms of our role in Community Safety; sizivile izikhalo zabantu bakuthi abakwilali zaseToleni nase Mambendeni, we have made available through the Mayors Discretionary Fund R800 000 to supply and erect High Mast Lighting poles. We are prepared to cover electricity costs for Mnquma Municipality to facilitate the Eskom connection thereof.

My fellow councillors;

We need to go green and do so with speed. In other Councils, they do not even print bulk of Council agendas as part of greening.

As part of our commitments to the green economy and climate change, the ADM will commission the development of a renewable study to outline clear opportunities in relation to environmental and sustainable development.

We will also update the Air Quality Management Plan to refl ect the current status of the ADM in relation to ambient quality standards.

The Amathole Mountain is one of the most bio diverse regions in the Eastern Cape. As part of a Council resolution, we are in the process of galvanising a partnership to embark on an UNESCO nomination processes for a declaration of the Amathole Biosphere Reserve.

In June, with funding assistance from the Department of Water Affairs, we will be targeting school children as part of Environmental Week in Hamburg and a Climate Change symposium where we will plant indigenous trees.

The ADM will continue to support the development of the fi lm industry through partnerships, supporting emerging fi lm makers and resource centres.

State of the District Address Amathole District Municipality

Page 15 Council speaker;

Obtaining an unqualifi ed audit opinion for 2010/2011 after qualifi ed audits for three prior consecutive years plus receiving a Vuna Award this fi nancial year for the most improved audit outcome takes a lot of hard work.

However, corruption levels both in government continue to hinder the sterling work and all the endeavours that seek to bring change in this country and thus it is vital the monitoring and oversight role be strengthened in fi nancial management.

When the Auditor General, Mr Phila Nombembe visited our district together with Provincial Auditor General Mr Singa Ngqwala; I made commitments towards the functionality of the Audit Committee and the Performance Audit Committee.

Together with the Council Speaker and Chairperson of MPAC, we are aiming to maintain the unqualifi ed report by avoiding regress and deliver a clean audit. This is why I signed a performance agreement with the Honourable MEC for Local Government and Traditional Affairs Mlibo Qoboshiyana.

The Eastern Cape Premier, the Hounarable Noxolo Kiviet, during the State of The Province Address has alluded to the fact that the time for talking has come to an end, we must take action!

This is why we have given ammunition to MPAC to promote good governance, transparency and accountability on the use of municipal resources.

Without fear or favour, MPAC must hold all of us accountable and must recommend or undertake any investigation in its area of responsibility and expose it accordingly.

Corrupt offi cials must have no place in the systems of Amathole District Municipality. MPAC must independently verify, evaluate fi nancial statements and double check boardroom projects that are not consistent with what is happening on the ground.

Xa kubhalwe kwathiwa kukho imibhobho yamanzi efakelweyo kwilali zethu...hambani niyokuvula ezompompo niwasele niwave lomanzi.

Xa kusithiwa kulinyiwe; hambani niyokugqogqa loomasimi niyokuvuna.

Kunjalo nje, babuzeni nibave ezinkonkqeni abantu ekubhalwe ezincwadini ezimbeje-mbeje ukuba baphuhlisiwe na? Baxolile na? Banelisekile na? Nibuye nisixelele sizokubiza i-Hawks naMapolisa benze umsebenzi wawo.

Xa ndisamkela ooCeba boMthonyana neegazi kwelibhunga laseMathole; ndithi kuni hambani niyokuba ngamehlo neendlebe zethu ekuhlaleni.

Bahlali besithili sase-Amathole;

Xa kusithiwa masabe ubutyebi nobuncwane bezezimali beli lizwe lethu kwaye sikhuthaze abo babecinezelwe ekuthabatheni inxaxheba, thina singuMASIPALA WESITHILI SASE-AMATHOLE asiyithandabuzi lonto.

Our Supply Chain Management (SCM) Policy seeks to promote an innovative form of targeted procurement, which will encourage socio-economic transformation within its region.

This policy seeks to continue to redress the skewed distribution of wealth.

State of the District Address Amathole District Municipality

Page 16 During the 2010/2011 fi nancial year, Capital Projects over R1m were allocated to Historically Disadvantaged Individual (HDI) owned companies is 85.14% which is well above the 55% target.

In terms of those that are less than R1 million allocated to HDI owned companies, the target is set at 70% and we achieved 95.96%.

For non-Capital Projects, the target is set at 60% and we achieved 83.49%.

Council’s overall performance stands at 88.11% of projects allocated to HDI owned companies. The target has been set at 60%.

There is a decrease of 0.76% in the fourth quarter as compared to the previous quarter. Council awarded projects to a total value of over R409 million. From this amount, 18.83% was awarded to female owned companies.

An amount of over R261 million was allocated to HDI owned companies. Of the remaining, over R48 million was allocated to non-HDI owned companies and R99 million was for specialised service. Through our SCM Policy our Job Creation statistics refl ect that as at the end of the 2010/2011 fi nancial year, 1 114 jobs were created of which 266 were woman, 361 male, 485 youths and 2 people with disabilities. During the past 10 years the Amathole District Municipality has awarded a total number of 2 696 projects.

Our Asset Management Strategy and roll-out Plan is in place. The ADM Asset Refurbishment Plan is at R267 million over 5 years.

As at 31 March 2012, the ADM had a staff complement of 1 443. As one of the designated employees in the country, we are expected to comply with the Employment Equity Act 55 of 1998.

In terms of race, we have no challenges, but two areas of great concern remain as the under representation of females and the gross under representation of people with disabilities.

Of the 1 443 employees, only 509 which is 35% are females and 934 which is 65% are males.

There are only 4 people with disabilities and that constitutes only 0.3%. In terms of the gender equity, the investigation conducted revealed that females do not apply for many Engineering jobs that require hard labour like trench digging and others.

Measures to address this include implementing a gender sensitive work place plan and advertisements for vacant positions being placed in all our satellite offi ces in the local municipalities. A learnership programme for people with disabilities was embarked upon during the current fi nancial year. While we do not own the buildings their offi ces are housed in, negotiations are underway with the landlords to ensure that their buildings are user friendly to people with disabilities.

On the issue of buildings, Council took a principled decision to relocate offi ces and move out of Buffalo City Metro. While Amahlathi Municipality was recommended as the targeted area for the main premises, this decision still has to be vigorously engaged upon through a public consultation process.

The Municipality enjoys workplace stability owing to excellent relations with organised labour, who have conducted themselves as true partners in service delivery, and expressed faith at the bona fi des of the Municipal leadership’s honesty to resolve issues.

Such is this faith that for more than three years, organised labour voluntarily forfeited its legal right

State of the District Address Amathole District Municipality

Page 17 as alternate chairperson of the Local Labour Forum (LLF), in favour of the Employer continuing to chair LLF meetings.

The principle of fairness when dealing with disciplinary matters has manifested itself in a hundred percent success rate in external arbitration proceedings brought against the Municipality. It has made South African Local Bargaining Council Commissioners to regard ADM as a fair employer that does not advance opportunistic and frivolous defence at arbitration proceedings.

We developed the District Human Resources Development Strategy to ensure we make bursaries available for Bursary on Rare Skills; Experiential Training Programme and Internships Programmes. Our Employee Study Assistance Scheme has seen 62 employed candidates enrolled for various educational qualifi cations with numerous universities in South Africa.

Our social responsibility is to ensure that all our employees possess a minimum level of numeracy and literacy and the enrolment for 2011/12 fi nancial year is 84 candidates for the Adult Basic Education and Training. We will be holding a graduation ceremony before the end of this fi nancial year to recognise some of these achievements.

Council Speaker;

Our plans are on track to revive the Local Municipal HIV/AIDS Councils, inducting and ensuring that every local council is assisted with developing a strategy to deal with the pandemic in its area of focus.

This will be a major step in the fi ght against the scourge of HIV and AIDS as it will ensure that information and support is disseminated to the lowest and most basic structures of governance in the municipality, the Ward.

At the beginning of this term we developed a Special Programmes Unit strategy. This strategy includes HIV and AIDs strategy. These strategies will assist the municipality to have a plan on how to deal with the challenge of mainstreaming the designated groups in the District. If I was not delivering this speech, I would be wearing sun glasses to mark solidarity with those who are blind as part of the worldwide campaign for today. To make a practical difference in this regard, through the Special Programmes Unit I will be donating brails to two people with these disabilities one residing in Nxuba Municipality and the other one from Ngqushwa Municipality.

Following many community requests and despite the fact that sport is not our competency, we launched the Amathole District Municipality Mayor’s Cup. This includes sports codes like soccer, rugby, boxing and netball. The purpose of the Mayor’s Cup is to unearth talent and to redirect the energies of young people in ADM to live healthy life styles free from criminal acts.

The Adopt-A-School program has seen the Mayors Offi ce making timely and much needed interventions by providing shoes and learning material to needy children in schools across the district. In line with Governments Back-to-School campaign that we undertake, I call on all our local municipalities to assist the Department of Education in ensuring that we invest in the future of the African child.

Our IDP includes the mainstreaming of young people in the core business of the municipality. An Interim Youth Council has been established and is charged with the task of setting up Local Youth Councils in all the local municipalities in the district.

A programme for the launch of the Local Youth Councils has been developed and will culminate with the establishment of a fully fl edged District Youth Council in the new fi nancial year. Council Speaker;

State of the District Address Amathole District Municipality

Page 18 Let us congratulate our artists including the likes of Zahara and Zolani Mkiva who have placed us on the map through music; arts and culture as well as the Mkiva Humanitarian Awards.

We salute the Ngqushwa Municipality’s Under 19 soccer team which took most of the opportunity after winning the Amathole District Mayors Cup and went on to reach Gold at the provincial South African Local Government Association games held in Port Elizabeth in December.

We also congratulate Lutho Precious Ndinise – who was selected from the Amathole District to the National Under 21 Netball Team. Congratulations to the 2012 Mayors Cup Winners in netball; boxing; rugby and soccer.

We note with pride the achievements of the likes of Zintle Mphupha from Nkonkobe Municipality who is representing the district in the Provincial Rugby sevens; professional boxer Mbuyiseli Bester from Great Kei; and Mbuyiselo Sambu from Ngqushwa who plays for Platinum Stars in the Premier Soccer League.

We would also like to encourage Blackburn Rovers to try even harder next year in their attempts to have a Premier Soccer League representation for the Eastern Cape.

In the indigenous games, we acknowledge Vuyokazi Mfabane and Ncumisa Mfeketho from Ngqush- wa Municipality who represented the District in the Ntonga (Stick fi ghting) National Championships. The same goes to Zoliswa Teyise who represented us in the Mrabaraba competition.

We wish our teams well as they are preparing for the SAIMSA games in Botswana.

Council Speaker;

We have outlined a busy programme for now until 2013 and beyond. Let me appeal to you to join hands and ensure that this becomes the year of action and not lip service. Collective thinking and wisdom will reap more rewards in building.

From the inputs that we received on the recent IDP and Budget roads shows we will fi x the operational issues that are within our limits and we will build the capital requirements in into our planning. When we went to the community of Cathcart and we were made aware of the critical nature of the lack of service delivery in the area we had to intervene and act.

As a result I am pleased to announce that the ADM has provided three projects for Cathcart in the fi nal budget for adoption today in the total sum of R3 million. These projects were carefully selected to make more bulk water and sewerage services available in order to connect more users into the networks.

It is absolutely crucial that the bulk water and sewerage systems must be upgraded before we can connect more users.

Let me also thank the cooperation and support that I have received from the TROIKA, the Mayoral Committee, labour Unions, Staff and the Community of Amathole District.

State of the District Address Amathole District Municipality

Page 19 Xa ndizakukwehla;

Ndithi masimanyaneni ekulweni indlala, intlupheko nokungalingani kwabantu bethu. Uthi uSEK Mqhayi xa eyala lamagorha phambi kokuba akhwele inqanwe uMendi esiya emfazweni nendicinga ukuba ngamazwi anifaneleyo nina zinkokheli zabantu bakuthi:

Hambani ke, bafondini, niy’ eFransi! Nikhumbul’ indlala eniyishiy’ emakhaya. Izihendo zongendawo ze nizoyise, Kuba nilapho nje namhla, nibingiwe; Sinenz’ idini lesizwe sikaNtu. Hambani, mathol’ eemaz’ ezimabele made; Hambani, mathol’ oonyonga-nde kukudlelana Hambani, kuba le nto thina sesiyibonile. UThixo wakowethu seleyijikele ngaphambili. Hambani ngemilenz’ engenamikhinkqi; Hambani ngeentliziyo ezingenadyudyu; Ngomzimb’ okhaphu-khaphu, ngomzimb’ ongenantaka, Nithi gxanya, gxanya, gxanya! Nithi ngxi-ngxi, ngxi-ngxi! Nithi ngxi-ngxi-ngxi-ngxilili!

I thank you.

State of the District Address Amathole District Municipality

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