Cooperative Governance and Traditional Affairs Minister Zweli Mkhize has provided written replies to Parliamentary questions
2545. Mr M Waters (DA) to ask the Minister of Cooperative Governance and Traditional Affairs:
Question
With regard to fire fighters at the fire stations at (a) Edenvale, (b) Kempton Park, (c) Tembisa, (d) OR Tambo International Airport and (e) Boksburg (i) what is the (aa) optimal and (bb) actual number of full-time fire fighters, (ii) what number of the full-time fire fighters have passed the final examinations of the SA Emergency Services Institute, including the written examination and the full set of practical evaluations and (iii) What total number of reservists does each specified fire station currently have? NW2834E
Reply:
The information requested by the Honourable Member was provided by the National Disaster Management Centre (NDMC) from the City of Ekurhuleni (CoE) and the OR Tambo International Airport. Table 1 below outlines the relevant details:
Optimal and actual number of firefighters per station
|
Name of the Fire Station |
(i) (aa) optimal |
(bb) Actual number of full-time fire Fighters |
(ii) Number of fulltime firefighters who passed final examination of SAESI |
(ii) Practical Components completed |
(iii) (iii)Total Number of Reservists |
|
a. Edenvale |
37 |
28 |
All completed Fire Fighter 1 & 2 |
Firefighting components: Hazmat Awareness & Operational |
3 |
|
b. Kempton Park |
37 |
41 |
All completed Fire Fighter 1 & 2 |
Firefighting components: Hazmat Awareness & Operational |
12 |
|
c. Tembisa |
37 |
36 |
All completed Fire Fighter 1 & 2 |
Firefighting components: Hazmat Awareness & Operational |
14 |
|
d. OR Tambo International Airport (Firefighters are employed by ORTIA) |
56 |
76 |
All completed Fire Fighter 1 & 2 |
Firefighting components: Hazmat Awareness & Operational |
None |
|
e. Boksburg Leon Ferreira |
37 |
32 |
All completed Fire Fighter 1 & 2 |
Firefighting components: Hazmat Awareness & Operational |
None |
1.
1.1. Firefighting is a profession which is one of the most stressful, physically demanding and hazardous occupation. Thus, Firefighters must master a complex mix of three core competencies being foundational knowledge, physical skill and work experience to be successful in their occupation.
1.2. The nature of work carried out by firefighters requires not only adequate training when entering the profession but also continuous professional development to ensure that firefighters stay abreast with the constant technological changes in their working environment.
1.3. It is important to note that training of firefighters must be benchmarked against globally accepted standards. Within the South African context, the Southern African Emergency Services Institute (SAESI) is accredited to provide occupational training for firefighters by the International Fire Service Accreditation Congress (IFSAC) which is based in the United States of America (USA).
1.4. IFSAC is a non-profit, peer-driven, self-governing system of both fire service certifying entities and higher education fire-related degree programs. IFSAC's mission is to plan and administer a high-quality, uniformly delivered accreditation system with an international scope.
1.5. Thus, IFSAC courses which are provided by SAESI such as Firefighter I and II, Hazmat Awareness and Operational are utilised by fire services in South Africa to recruit entry-level firefighters. These courses are based on the American National Fire Protection Association (NFPA) Standards and are utilised both in the USA and several other countries for the basic training of firefighters.
1.6. The Local Government Sector Education and Training (LGSETA) has also developed a qualification known as the Fire and Rescue Operations, Level 4 in terms of the National Qualifications Framework (NQF) based on the same NFPA Standards. Firefighters must obtain formal qualifications in order to progress in their careers within the fire services. Qualifications in Fire Technology are currently provided by the Tshwane University of Technology (TuT) and includes a National Diploma, BTECH Degree and Master’s Degree. These are the qualifications that are also utilised by fire services to recruit senior fire officers in the country.
1.7. The NDMC is finalising the review of the Fire Brigade Services Act, 1987 and as part of the revised legislation and policy framework, a national fire services education and training strategy will be developed to guide the provision of training in the fire service.
2579. Mr Z R Xalisa (EFF) to ask the Minister of Cooperative Governance and Traditional Affairs:
(1) (a) What is the total number of (i) deputy directors-general and (ii) chief directors that are employed in (aa) an acting and (bb) a permanent capacity in his department and (b) what is the total number of women in each case;
(2) (a) what is the total number of (i) chief executive officers and (ii) directors of each entity reporting to him and (b) what is the total number of women in each case? NW2869E
Reply:
The information was provided by National CoGTA and MISA Human Resources
|
1 (a) (i) Total number of Deputy Directors-General |
3 |
|
(ii) Total number of Chief Directors that are employed in (aa) an acting capacity |
None |
|
(bb) Total number of Chief Directors employed in a permanent capacity |
30 |
|
(b) What is the total number of women in each case |
|
|
(i) Deputy Directors-General |
None |
|
(ii) Chief Directors |
14 |
2. Entities
|
South African Local Government Association (SALGA) |
2(a)(i) Total Number of Chief Executive Officer |
1 |
|
(ii) Total number of Directors |
|
|
|
b) What is the total number of women in each case |
||
|
Chief Executive Officer |
None |
|
|
Directors |
|
|
|
SACN( South African Cities Network (SACN) |
2(a)(i) Total Number of Chief Executive Officer |
1 |
|
(ii) Total number of Directors |
2 |
|
|
b) What is the total number of women in each case |
||
|
Chief Executive Officer |
None |
|
|
Directors |
2 |
|
|
MDB (Municipal Demarcation Board) |
2(a)(i) Total Number of Chief Executive Officer |
1 |
|
(ii) Total number of Directors |
3 |
|
|
b) What is the total number of women in each case |
||
|
Chief Executive Officer |
None |
|
|
Directors |
2 |
|
3. MISA
|
1 (a) (i) Total number of Deputy Directors-General |
2 (One is a MISA employee and the other one is seconded from the Department of Cooperative Governance. (bb) (These posts have been advertised and the recruitment is underway.) |
|
(ii) Total number of Chief Directors that are employed in (aa) an acting capacity |
3 |
|
bb) Total number of Chief Directors employed in a permanent capacity |
5 (Four positions are vacant with three having been advertised.) |
|
(b) What is the total number of women in each case |
|
|
(i) Deputy Directors-General |
0 |
|
(ii) Chief Directors |
0 (There is one woman out of five CDs appointed in a permanent capacity.)
|
|
2(a)(i) Total Number of Chief Executive Officer |
1 CEO (Male), reporting directly to the Minister.
|
|
(ii) Directors |
0 |
2618. Mr Z R Xalisa (EFF) to ask the Minister of Cooperative Governance and Traditional Affairs:
(1) What is the total number of (a) municipal managers in the country and (b)(i) women municipal managers and (ii) in which municipality is each employed?
Reply:
|
Province |
No. of Municipalities |
(a) No. of Municipal Managers |
(b)(i) No. of Women Municipal Managers |
(ii) Municipality Employed |
|
Eastern Cape |
39 |
28 |
0 |
Not applicable |
|
Gauteng |
11 |
10 |
2 |
Ekurhuleni Metropolitan Municipality Merafong Local Municipality |
|
Free State |
23 |
22 |
6 |
Xhariep District Municipality Lejweleputswa District Municipality Tswelopele Local Municipality Thabo Mofutsanyana District Municipality Phumelela Local Municipality Fezile Dabi District Municipality |
|
Kwa Zulu Natal |
54 |
47 |
9 |
Umzumbe Local Municipality Umngeni Local Municipality Mkhambathini Local Municipality Richmond Local Municipality Alfred Zuma Local Municipality Umvoti Local Municipality Nongoma Local Municipality Harry Gwala Local Municipality Umhlabuyalingana Local Municipality |
|
Limpopo |
27 |
22 |
9 |
Collins Chabane Local Municipality
Ba-Phalaborwa Local Municipality
Capricorn District Municipality Sekhukhune District Municipality
Elias Motsoaledi Local Municipality Makhuduthamaga Local Municipality Fetakgomo/Tubatse Local Municipality Ephriam Mogale Local Municipality Lephalale Local Municipality |
|
Mpumalanga |
20 |
12 |
4 |
Nkangala District Municipality Lekwa Local Municipality Emakhazeni Local Municipality Bushbuckridge Local Municipality |
|
Northern Cape |
31 |
23 |
4 |
Frances Baard District Municipality Magareng Local Municipality Phokwane Local Municipality Nama Khoi Local Municipality |
|
North West |
22 |
17 |
2 |
Rustenburg Local Municipality Dr Kenneth Kaunda District Municipality |
|
Western Cape |
30 |
29 |
2 |
Stellenbosch Local Municipality Bergrivier Local Municipality |
1.1. A parliamentary question was received about the total number of municipal managers in the country, women municipal managers and in which municipality is each employed.
1.2. Local Government: Regulations on Appointment and Conditions of Employment of Senior Managers 2014, provides that a municipal council must assess their human resource needs by race, gender and disability, the department with reference to competencies, training needs and employment capacities. A municipality must plan within its available budgeted funds for the recruitment, retention and development of human resources according to its specific needs. This plan must also provide for realistic goals and measurable targets for achieving representativeness and targets for the training of senior managers.
1.3. Two-hundred and ten (210) municipal manager posts out of two-hundred and fifty-seven (257) posts have been filled as at August 2018 representing 82% of the employment rate. Out of the 208 filled municipal manager positions, thirty-eight (38) have been filled by female municipal managers.
2488. Mr Z R Xalisa (EFF) to ask the Minister of Cooperative Governance and Traditional Affairs:
(a) Since July 2016, what is the total number of persons who were appointed at senior management level at Langeberg, Matzikama, Mossel Bay, Oudtshoorn, Overstrand, Cederberg, Hessequa, Knysna, Cape Winelands, Eden, Overberg, West Coast, Beaufort West, Bergrivier, Bitou, Breede Valley, Cape Agulhas, City of Cape Town, Theewaterskloof, Overstrand, Stellenbosch, Swartland, Swellendam, Saldanha Bay, Prince Albert and Witzenberg municipalities, (b) what is the position in which each person was appointed, (c) what is the name of each person, (d) on what date was each person appointed, (e) what is the qualification of each person who has been appointed and (f) what is the name of each member of the interviewing panel?
Reply:
A Parliamentary question was received regarding the details number of persons who were appointed at senior management level at municipalities since July 2016.
Section 54A and 56 of the Systems Act prescribe that –
(a). if the post of municipal manager or a manager directly accountable to the municipal manager becomes vacant, the municipal council must advertise the post in a print-media circulating nationally and select from the pool of candidates a suitable person who complies with the prescribed requirements for appointment to the post;
(b). a person appointed as a municipal manager or manager directly accountable to the municipal manager must at least have the skills, expertise, competencies and qualifications as prescribed;
(c). a municipal council must appoint a municipal manager;
(d). a municipal council after consultation with the municipal manager, must appoint a manager directly accountable to the municipal manager;
(e) a decision to appoint a municipal manager or manager directly accountable to the municipal manager is null and void if the person appointed does not meet the prescribed skills, expertise, competencies and qualifications;
(f) the municipal council must within 14 days of appointment inform the MEC responsible for local government of the appointment process and outcome;
(g) the MEC for local government must within 14 days of receipt of the information referred to above and after satisfying himself/ herself that the appointment complies with the prescribed requirements and that the appointment was made in accordance with the Systems Act, submit a copy thereof to the Minister within 14 days of receipt;
(h). the municipal council must re-advertise the post if there is no suitable candidate who complies with the prescribed requirements; and
(i). the municipal council may, in special circumstances and on good cause shown, apply in writing to the Minister to waive the skills, expertise, competencies and qualifications as prescribed if it is unable to attract suitable candidates.
The Local Government: Regulations on Appointment and Conditions of Employment of Senior Managers (“the Regulations”) prescribe that a municipal council must appoint a selection panel of at least three and not more than five persons to make recommendations for the appointment of candidates to vacant senior manager posts.
(a). In the case of the appointment of a municipal manager, the selection panel must consist of at least the following persons:
(i) The mayor, who will be the chairperson, or his or her delegate
(ii) A councillor designated by the municipal council and
(iii) At least one other person, who is not a councillor or a staff member of the municipality, and who has expertise or experience in the area of the advertised post.
(b). In the case of the appointment of a manager directly accountable to a municipal manager, the selection panel must consist of at least the following persons:
(i) The municipal manager, who will be the chairperson
(ii) A member of the mayoral committee or councillor who is the portfolio head of the relevant portfolio and
(iii) At least one other person, who is not a councillor or a staff member of the municipality, and who has expertise or experience in the area of the advertised post.
2255. Mr K J Mileham (DA) to ask the Minister of Cooperative Governance and Traditional Affairs:
(1) (a) Which municipalities are affected by the intention of the Eastern Cape Provincial Government to establish interventions on instruction of his department, (b) on what legal provision will each intended intervention rely on, (c) what will be the timeline and (d) what are the expected outcomes of each intervention;
(2). whether all interventions under section 139 of the Constitution of the Republic of South Africa, 1996, have been exhausted; if not, why has the national and/or provincial executive not acted in terms of the specified constitutional obligation?
Reply:
(1). (a) I am not aware of any municipalities affected by the Eastern Cape Provincial Government’s intention to establish interventions in that province, and neither I nor my Department have instructed the provincial government to invoke interventions in the province. I can only become aware of such municipalities, if any, once the provincial government has initiated the interventions and then submitted to me the requisite notices, because interventions are a prerogative of the provincial government. However, I have recently referred to the province a demand from the Legal Resources Centre for an intervention at Makana Local Municipality and a request from Hon. Terri Stander, MP, for an intervention at Enoch Mgijima Local Municipality, for the provincial government’s consideration. I was subsequently notified by the MEC for Cooperative Governance and Traditional Affairs that the Provincial Government has intervened at Enoch Mgijima Local Municipality in terms of sections 139(1)(b) and 139(5) of the Constitution.
For reasons already stated above, I am also not aware as to: (b) on what legal provision will each intended intervention rely on, (c) what will be the timeline and (d) what are the expected outcomes of each intervention.
(2). Regarding the second question, I am unable to discern what response or details Hon. Mileham wanted to elicit from me because his question is not easy for me to understand. Assuming that he wants to know whether all interventions in terms of section 139 of the Constitution have ever been implemented in the Eastern Cape, then the answer is “No”, not all interventions in terms of this section have ever been implemented in the Eastern Cape. According to records at my Department’s disposal, the provincial government has in the majority of cases invoked interventions in terms of section 139(1)(b) of the Constitution at its municipalities. I have observed that, sometimes, these interventions have been invoked simultaneously with section 139(5) of the Constitution, as is the case at Enoch Mgijima Local Municipality. However, the provincial government has never invoked an intervention in terms of section 139(4) of the Constitution.
I am also unable to provide a direct answer to the second part of this question, as to why the national and/or provincial executive have not acted in terms of the specified constitutional obligation. This is due to the fact that the constitutional obligation Hon. Mileham is referring to has not been specified in the question.
2256. Mr K J Mileham (DA) to ask the Minister of Cooperative Governance and Traditional Affairs:
Whether any of the 15 municipalities that invested with the VBS Mutual Bank received (a) presentations and/or (b) instructions from any official of a certain political organisation (name furnished) at national or provincial level to do so; if not, what is the position in this regard; if so, (i) what is the name of the person who made the presentation and/or issued the instruction, (ii) on which statutory grounds was the presentation and/or instruction made and (iii) on what date did each presentation and/or instruction take place?NW2430E
Reply
(a). The Municipal Financial Management Act (MFMA) and its Regulations prescribes legal framework in which municipalities and municipal entities should manage their financial affairs. Municipal Investment Regulation 10 state that Investment by a municipality or municipal entity must take all reasonable and prudent steps consistent with its investment policy and according to the care set out in regulation 5 of Municipal Investment Regulation, to ensure that that it places its investments with creditworthy institutions.
The Municipal Investment Regulation 12 state that the responsibility and risk arising from any investment transaction vests in the relevant municipality or municipal entity.
All the municipalities invested with VBS Mutual Bank confirmed that they did not receive any presentation from an official of political organisation at Provincial and/ National level to invest the funds.
(b). All the municipalities invested with VBS Mutual Bank confirmed that they did not receive any instruction from an official of political organisation at Provincial and/ National level to invest the funds.
Municipalities reflected that they used quotations from financial institutions to invest the funds in accordance with their municipal investment policies.
Given the response that no presentations made and/ instruction issued, the questions relating to (i), (ii) and (iii) are not applicable.
Section 13(1) of the Municipal Financial Management Act (MFMA) states that the Minister of Finance, acting with the concurrence of the Cabinet member responsible for local government, may prescribe a framework within which municipalities must (a) Conduct their cash management and investments and
b) Invest monies not immediately required, (2) a municipality must establish an appropriate and effective cash management and investment policy in accordance with any framework that may be prescribed in terms of subsection (1).
Regulation 6 of the Municipal Investment Regulations state that a municipality or municipal entity may invest funds only in any of the following investment types:
(a) Securities issued by the national government
(b) Listed corporate bonds with an investment grade rating from a nationally or intentionally recognized credit rating agency
(c) Deposits with banks registered in terms of the Banks Act 1990 (Act No 94 of 1990)
(d) Deposits with the Public Investment Commissioners as contemplated by the Public Investment Commissioners Act 1984(Act No.45 of 1984)
(e) Deposits with the Corporation for Public Deposits as contemplated by the Corporation for Public Deposits Act 1984(Act No. 46 of 1984)
(f) Banker’s acceptance certificates or negotiable certificates of deposits of banks registered in t terms of the Banks Act 1990
(g) Guaranteed endowment policies with the intention of establishing a sinking fund
(h) Repurchase agreements with banks registered in terms of the Banks Act 1990, Municipal bonds issued by a municipality and
(j) Any other investment type as the minister may identify by regulation in terms of section 168 of the Act, in consultation with the Financial Service Board.
The investment with Mutual Bank is not permitted in terms of the Municipal Investment Regulations. The 15 municipalities invested funds contrary to the Municipal Financial Management Act and Municipal Investment Regulations.
Municipalities are prohibited to take instructions from external parties and/ official from a political organization to influence government processes, as it is deemed interference with the administration processes. Municipalities use government legislations, regulations and municipal policies to procure goods and services
2238. Ms D van der Walt (DA) to ask the Minister of Cooperative Governance and Traditional Affairs:
Reply
The information was provided by the Mopani District Municipality
1. (a) The Mopani District Municipality has entered into agreements with its local municipalities (Ba-Phalaborwa LM, Greater Giyani LM, Greater Letaba LM, Greater Tzaneen LM and Maruleng LM) through which its locals are appointed to become water service providers on behalf of the district. As part of the agreement, it is the requirement that each local municipality provides the district on monthly basis, with a report outlining the revenue collected against the billing, expenditure and age analysis of the creditors and debtors for water. In terms of the signed agreements, it is mandatory of the locals to pay back the profit to the district if profits have been accumulated on the provision of water on behalf of the district, and if the locals have operated the water business at a loss, it becomes the responsibility of the district to repay the local municipality for the losses incurred. It is against the above context that only Ba- Phalaborwa owes Mopani district, as it is the only local municipality within the district that has operated the water provision business on profit, which resulted to a recorded debt R180 million.
Subsequently, the Mopani District Municipality has an outstanding debt to its four (4) locals within the district that are operating the water function at a loss and the breakdown is as follows:
- Greater Tzaneen LM R179,6 million
- Greater Letaba LM R55 million
- Greater Giyani R27,6 million
- Maruleng LM R23,4 million
(b). The reported figures on outstanding debt are as at June 2017 and are reflected on the audited Annual Financial Statements of 2016/17 financial year. According to the municipality, the current and latest available debt amounts that are reported on the MFMA Section 71 reports are mostly disputed, incorrect, and unreliable and regarded as not a true reflection of the arrear debt.
(c). The debt owed by and to the Mopani District Municipality is as a result of the following:
- The local municipalities are having an agreement to provide or operate the provision of water and sanitation on behalf of the district. It is a requirement that in terms of the signed agreement between the district and its locals, the revenue collected and generated be transferred to the district. However, in most instances, the clause is not implemented.
- The four local municipalities owed by the district are operating the water and sanitation services at a loss as the revenue they generated is less than the expenses they incurred, and as a result the district is expected to reimburse its locals.
The Ba-Phalaborwa Local Municipality has been operating the electricity function at a profit and the profit generated is expected to be surrendered to the district municipality on annual basis. However, this local municipality failed to surrender the profit, which has resulted on the outstanding debt.
(d) Ba-Phalaborwa LM has signed and is honouring a payment agreement of R1. 7 million with the district municipality. The district uses the payment from the local municipality to repay its debt owed to the Water Board. The district is facilitating a process to write-off some of the outstanding debt of its local municipalities.
In terms of the project closeout report, it was identified that the root causes of non- payment of debt are as a result of the various shortfalls in the Service Level Agreement (SLA) between the district and its locals and the lack of implementation thereof. The district municipality is in the process of amending the SLA to improve the identified gaps.
2. The department has supported the Mopani District Municipality with a Simplified Revenue Plan in the 2016/17 to 2017/18 financial years. The simplified revenue plan’s objectives are to improve revenue management, reduce municipal consumer debt and protect municipal revenue. The department has also assisted the district municipality to determine cost reflective tariffs and recommended to the Mopani District Municipality not to charge the same tariff in all its five local municipalities, but to rather have tariffs that are determined in accordance with the circumstances of the different Water Service Providers (WSP).
The primary responsibility for water services provision rests with local government. In terms of Section 84 of the Municipal Structures Act, the responsibility for providing water services rests with the district and metropolitan municipalities. However, the Act allows the Minister of Cooperative Governance and Traditional Affairs to authorise a local municipality to perform these functions or exercise these powers. The district (or authorised local) municipality is the water services authority as in Water Services Act.
There can only be one water services authority in any specific area (that is, water services authority areas cannot overlap). The main duty of water services providers is to provide water services in accordance with the Constitution, the Water Services Act and the by-laws of the water services authority, and in terms of any specific conditions set by the water services authority in a contract.
Mopani District Municipality has entered into an agreement with Local Municipalities through which it appointed the Local Municipalities to become water services providers on its behalf. As part of the agreement, the Local Municipalities are to provide for the rendering of water services in an efficient, equitable, cost effective and sustainable manner. The WSP was obligated in terms of the agreement to submit on a monthly basis not later than the 10th of every month, a report outlining the revenue collected against the billing, expenditure per line item and the age analysis of the creditors and debtors for water.
Adherence to WSP Agreement
The local municipalities do not adhere to the WSP agreement, as a result, credibility of the financial reports from local municipalities is questionable. The cash collection reports as well as the expenditure allocated to water and sanitation activities lack credibility, which in the end, the amounts claimed by both the district and the local municipalities are mostly disputed.
Disputes by local municipalities on non-payment as per the signed WSP agreement
The local municipalities are indicating that Income and Expenditure for the water and sanitation services are running at a loss. The SLA requires the WSA to open a separate bank account for the water and sanitation services and the WSP must bank all cash received daily into this account and currently not happening and negatively affect the cash flow of the District Municipalities.
2238. Ms D van der Walt (DA) to ask the Minister of Cooperative Governance and Traditional Affairs:
With regard to the debt owed to Mopani District Municipality, Limpopo, by (a) Ba-Phalaborwa, (b) Giyani, (c) Greater Letaba, (d) Maruleng and (e) Greater Tzaneen Local Municipalities, (i) what are the amounts owed as at the latest specified date for which information is available, (ii) for what period has the debt been outstanding, (iii) what is the reason for the non-payment, (iv) what steps have been taken to collect the debt by the District Municipality and (v) will his office intervene; if so, (aa) when and (bb) how?
Reply
The information was provided by the Mopani District Municipality
2. (a) The Mopani District Municipality has entered into agreements with its local municipalities (Ba-Phalaborwa LM, Greater Giyani LM, Greater Letaba LM, Greater Tzaneen LM and Maruleng LM) through which its locals are appointed to become water service providers on behalf of the district. As part of the agreement, it is the requirement that each local municipality provides the district on monthly basis, with a report outlining the revenue collected against the billing, expenditure and age analysis of the creditors and debtors for water. In terms of the signed agreements, it is mandatory of the locals to pay back the profit to the district if profits have been accumulated on the provision of water on behalf of the district, and if the locals have operated the water business at a loss, it becomes the responsibility of the district to repay the local municipality for the losses incurred. It is against the above context that only Ba- Phalaborwa owes Mopani district, as it is the only local municipality within the district that has operated the water provision business on profit, which resulted to a recorded debt R180 million.
Subsequently, the Mopani District Municipality has an outstanding debt to its four (4) locals within the district that are operating the water function at a loss and the breakdown is as follows:
- Greater Tzaneen LM R179,6 million
- Greater Letaba LM R55 million
- Greater Giyani R27,6 million
- Maruleng LM R23,4 million
(c) The reported figures on outstanding debt are as at June 2017 and are reflected on the audited Annual Financial Statements of 2016/17 financial year. According to the municipality, the current and latest available debt amounts that are reported on the MFMA Section 71 reports are mostly disputed, incorrect, and unreliable and regarded as not a true reflection of the arrear debt.
(e) The debt owed by and to the Mopani District Municipality is as a result of the following:
- The local municipalities are having an agreement to provide or operate the provision of water and sanitation on behalf of the district. It is a requirement that in terms of the signed agreement between the district and its locals, the revenue collected and generated be transferred to the district. However, in most instances, the clause is not implemented.
- The four local municipalities owed by the district are operating the water and sanitation services at a loss as the revenue they generated is less than the expenses they incurred, and as a result the district is expected to reimburse its locals.
The Ba-Phalaborwa Local Municipality has been operating the electricity function at a profit and the profit generated is expected to be surrendered to the district municipality on annual basis. However, this local municipality failed to surrender the profit, which has resulted on the outstanding debt.
(f) Ba-Phalaborwa LM has signed and is honouring a payment agreement of R1. 7 million with the district municipality. The district uses the payment from the local municipality to repay its debt owed to the Water Board. The district is facilitating a process to write-off some of the outstanding debt of its local municipalities.
In terms of the project closeout report, it was identified that the root causes of non- payment of debt are as a result of the various shortfalls in the Service Level Agreement (SLA) between the district and its locals and the lack of implementation thereof. The district municipality is in the process of amending the SLA to improve the identified gaps.
3. The department has supported the Mopani District Municipality with a Simplified Revenue Plan in the 2016/17 to 2017/18 financial years. The simplified revenue plan’s objectives are to improve revenue management, reduce municipal consumer debt and protect municipal revenue. The department has also assisted the district municipality to determine cost reflective tariffs and recommended to the Mopani District Municipality not to charge the same tariff in all its five local municipalities, but to rather have tariffs that are determined in accordance with the circumstances of the different Water Service Providers (WSP).
The primary responsibility for water services provision rests with local government. In terms of Section 84 of the Municipal Structures Act, the responsibility for providing water services rests with the district and metropolitan municipalities. However, the Act allows the Minister of Cooperative Governance and Traditional Affairs to authorise a local municipality to perform these functions or exercise these powers. The district (or authorised local) municipality is the water services authority as in the Water Services Act.
There can only be one water services authority in any specific area (that is, water services authority areas cannot overlap). The main duty of water services providers is to provide water services in accordance with the Constitution, the Water Services Act and the by-laws of the water services authority, and in terms of any specific conditions set by the water services authority in a contract.
Mopani District Municipality has entered into an agreement with Local Municipalities through which it appointed the Local Municipalities to become water services providers on its behalf. As part of the agreement, the Local Municipalities are to provide for the rendering of water services in an efficient, equitable, cost effective and sustainable manner. The WSP was obligated in terms of the agreement to submit on a monthly basis not later than the 10th of every month, a report outlining the revenue collected against the billing, expenditure per line item and the age analysis of the creditors and debtors for water.
Adherence to WSP Agreement
The local municipalities do not adhere to the WSP agreement, as a result, credibility of the financial reports from local municipalities is questionable. The cash collection reports as well as the expenditure allocated to water and sanitation activities lack credibility, which in the end, the amounts claimed by both the district and the local municipalities are mostly disputed.
Disputes by local municipalities on non-payment as per the signed WSP agreement
The local municipalities are indicating that Income and Expenditure for the water and sanitation services are running at a loss. The SLA requires the WSA to open a separate bank account for the water and sanitation services and the WSP must bank all cash received daily into this account and currently not happening and negatively affect the cash flow of the District Municipalities../Ends
Enquiries:
Musa Zondi
Cell: 0728006449
