Service delivery was the main focus as Makana Municipality’s executive mayor Nomhle Gaga tabled the Integrated Development Plan and budget for 2016/17 yesterday. The budget is largely made up of external funding.
Service delivery was the main focus as Makana Municipality’s executive mayor Nomhle Gaga tabled the Integrated Development Plan and budget for 2016/17 yesterday. The budget is largely made up of external funding.
Tabling the budget, the last of the current local government term, during a short special council meeting yesterday, Gaga said about 90% of the 2016/17 budget was made up of external funding.
Gaga told the council that R475 701 548.00 makes up the operational budget, while the capital budget accounts for R310 443 200 of the budget and R25 887 482 goes to maintenance.
Gaga said the municipality is still experiencing financial difficulties and it is still owes its creditors about R90 million while being owed about R300m by residents.
“In this 2016/17 financial year, payment of creditors must be a priority,” she said.
Based on the financial needs and requirements of the municipality the following tariff increases have been imposed for 2016/17: Electricity 7.64%, Refuse 8.5%, Sewer 8.5%, Water 8.5%, Rates 9%.
Housing
Gaga also addressed the housing challenges that face the municipality. She said the inadequate service delivery of the municipality is largely due to lack of much needed resources more specifically financial, proper management and financial control systems.
“As a strategy to try and address the above scenario the Makana Municipality has engaged many external stakeholders (Provincial Government, Department of Water and Sanitation Provincial and National and Presidential Infrastructure Coordinating Committee) and canvassed their support regarding service delivery backlogs.”
This is evident in the budget for 2016/17 financial year, which reflects that about 90% of the budget is funded from external stakeholders.
Gaga said the dire financial situation of the municipality is also caused by the history of poor revenue collection.
“This is exacerbated by the large number of creditors who owe the municipality. In order to bring a solution to the matter the municipality has sought the services of a service provider to lead the collection of revenue,” she said.
Gaga said housing development in Makana has been facing some challenges. These include management of the housing beneficiary list process, particularly with the Extension 10 housing development.
Another challenge has been the completion of the housing development of Kwandancama where a re-application for 34 houses is needed for the project to happen and the Mission housing development.
Gaga said there shouldn't be a problem with applying for housing in the two areas because they already have flushing toilets.
“The Municipality must submit an application to Human Settlement for top-up funding for KwaNdancama and housing development for Mission.”
Another area that has not seen housing development is Alicedale.
Gaga said the last time houses were built in Alicedale was in 1994 and the stumbling block has been the transfer of land from National Public Works to Makana Municipality since 2005.
Alicedale
She said 331 houses would be built on that land.
“Transfer of land to the municipality by Public Works is about to be completed and Human Settlements will be able to build 331 houses in Alicedale.
Also a project of 27 houses will commence very soon," she said.
With regards to Extension 10 Gaga said the Mayoral Committee has resolved to conduct an investigation into the Mayfield beneficiary list through an independent service provider.
"We must curb fraud in the municipality and we are capable of that. The Kabuso report and payroll forensic investigation shows that," she said.
In her opening address Gaga outlined the progress that the municipality has made in attempting to deal with a myriad of challenges leading up to being placed under administration.
Referring to critical posts that had been vacant for a long time, Gaga said she was proud to tell the council that meetings are sitting as scheduled and all four of the critical posts have been filled except the municipal manager post.
Performance management
She said it would be prioritised in the next financial year.
The municipality has made significant strides in terms of complying with the labour amendment act, despite financial challenges, according to Gaga. She said the implementation of the Act was very challenging for the municipality due to lack of funding, however they were able to implement it during the budget adjustment period.
"There were 112 contract workers, 108 have been absorbed, four of the employees are at retirement age and the municipality is assisting these casual workers to have smooth exit," she said.
Speaking about the implementation of Performance Management Systems (PMS), Gaga said in the past three financial years these were not adequately implemented. They were only implemented at senior management level.
Qualified audit
She said performance agreements were not signed as prescribed in the PMS regulation and no performance evaluations were conducted. Performance agreements were last signed in 2014, according to Gaga; however, performance evaluations are now conducted quarterly.
The municipality's audit opinions have been disclaimers for a number of years and the municipality was overjoyed when they received a qualified audit opinion for the auditor general for the past financial year.
"As we all know that the municipality has been getting disclaimers since 2003. Last year we were able to improve to qualified opinion and for this current year we are striving for unqualified audit opinion," Gaga said.
About the municipality's organogram Gaga said the municipality undertook an organisational diagnosis and they are busy developing a service delivery operational model.
"A revised organogram will be tabled in next ordinary Council in June for approval," she said.
The municipality has had its fair share of problems with regards to litigation.
Gaga said there was an escalation of expenditure on litigation and attachments against the municipality; however after the appointment of a legal manager, litigations had come under control.
Council Speaker Yandisa Vara welcomed newly-appointed Chief Financial Officer Nontobeko Siwahla. Siwahla started her new job at the beginning of this month.
anele@grocotts.co.za
