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ANNUAL REPORT 2018/2019 
UMSINGA LOCAL MUNICIPALITY 



ANNUAL REPORT 2018/2019 

This Annual Report is drafted in terms of the Local 
Government: Municipal Finance Management Act, 2003 (Act 56 of 2003) and the Local 
Government: Municipal Systems Act, 2000 (Act 32 of 2000). 


- 05 / 12/2019 

MR.S.L. SOKHELA 
MUNICIPAL MANAGER 


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TABLE OF CONTENTS 

GLOSSARY.5 

CHAPTER 1: MAYOR’S FOREWORD AND EXECUTIVE SUMMARY.11 

1.1 MAYORS FOREWORD.12 

1.2 MUNICIPAL MANAGER’S FOREWORD.17 

1.3 MUNICIPAL OVERVIEW.20 

1.3.1 INTRODUCTION.20 

1.3.2 LEGISLATIVE REQUIREMENTS.20 

1.3.3 PERFORMANCE MANAGEMENT OVERVIEW AND PROCESS.21 

1.3.4 LEGISLATIVE ANNUAL PERFORMANCE REPORT 2018-2019.21 

1.3.5 SPATIAL ANALYSIS:.22 

1.3.6 ORGANISATIONAL DEVELOPMENT OVERVIEW.38 

1.3.7 AUDITOR-GENERAL REPORT.39 

1.3.8 STATUTORY ANNUAL REPORT PROCESS.40 

CHAPTER TWO: GOVERNANCE.43 

2.1 INTRODUCTION TO GOVERNANCE. 43 

2.2 COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE. 43 

2.2.1 POLITICAL AND ADMINISTRATIVE GOVERNANCE.43 

2.2.2 POLITICAL GOVERNANCE.44 

2.2.2 ADMINISTRATIVE GOVERNANCE.50 

2.3 COOPERATIVE GOVERNANCE AND INTERGOVERNMENTAL RELATIONS. 54 

2.3.1 INTERGOVERNMENTAL RELATIONS.55 

2.4 PUBLIC ACCOUNTABILITY AND PARTICIPATION. 56 

2.4.1 OVERVIEW OF PUBLIC ACCOUNTABILITY AND PARTICIPATION.56 

2.4.2 PUBLIC MEETINGS.57 

2.5 CORPORATE GOVERNANCE.60 

2.5.1 OVERVIEW OF CORPORATE GOVERNANCE.60 

2.5.2 RISK MANAGEMENT.61 


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2.5.3 INTERNAL AUDIT.62 

2.5.4 ANTI-CORRUPTION AND FRAUD.62 

2.5.5 SUPPLY CHAIN MANAGEMENT.63 

2.5.6 BY-LAWS/POLICIES.63 

2.5.7 PUBLIC SATISFACTION WITH MUNICIPAL SERVICES.65 

CHAPTER 3: THE SERVICE DELIVERY AND BUDGET IMPLEMENTATION PLAN - SDBIP.67 

3.1 THE MUNICIPAL SCORECARD.67 

3.2 PERFORMANCE AGAINST THE NATIONAL KEY PERFORMANCE INDICATORS.69 

3.3 SUMMARY OF MUNICIPAL PERFOMANCE.70 

CHAPTER 4: ORGANISATIONAL DEVELOPMENT PERFORMANCE.84 

4.1 ORGANIZATIONAL DEVELOPMENT.84 

4.2 POWERS AND FUNCTIONS.84 

4.2.1 UMSINGA MUNICIPAL POWERS AND FUNCTIONS.86 

4.3 INTRODUCTION TO THE MUNICIPAL PERSONNEL EMPLOYMENT EQUITY.91 

4.4 MANAGING THE MUNICIPAL WORKFORCE.91 

4.4 PERFORMANCE REWARDS.92 

4.5 CAPACITATING THE MUNICIPAL WORKFORCE.92 

4.6 MANAGING THE WORKFORCE EXPENDITURE.93 

4.6.1 INTRODUCTION TO WORKFORCE EXPENDITURE.93 

4.6.2 COMMENT ON WORKFORCE EXPENDITURE.93 

4.6.3 DISCLOSURES OF FINANCIAL INTERESTS.93 

CHAPTER FIVE: FINANCIAL PERFOMANCE.95 

5.1 ANALYSIS OF FINANCIAL STATEMENTS.95 

5.1.1 REVENUE.95 

5.1.2 SURPLUS.95 

5.1.3 OPERATING COSTS.95 

5.1.4 OPERATING PROFIT.95 

5.2 REVIEW OF THE STATEMENT OF FINANCIAL POSITION.96 


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5.2.1 WORKING CAPITAL.96 

5.3 SUPPLY CHAIN MANAGEMENT.102 

5.4 INTERNAL AUDIT.103 

5.4.1 AUDIT COMMITTEE.104 

5.4 MAYORAL PROGRAMME OF ACTION PHASE ONE (1) MSINGA MUNICIPALITY: AUGUST 2018 - APRIL 2019.110 


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GLOSSARY 


DEFINITIONS 

Accountability 

documents 

Documents used by executive authorities to give “full and regular" reports on the matters under 
their control to parliament and provincial legislatures as prescribed by the Constitution of the 
Republic of South Africa, 1996 (Act 108 of 1996). This includes plans, budgets, in-year and 
annual reports. 

Activities 

The processes or actions that use a range of inputs to produce the desired outputs and ultimately 
outcomes. In essence, activities describe "what we do". 

Annual Report 

A report to be prepared and submitted annually based on the regulations set out in Section 

121 of the Local Government: Municipal Finance Management Act, 2003 (Act 56 of 2003). Such a 
report must include the annual financial statements as submitted to the Auditor General. 

Approved Budget 

The annual financial statements of a Municipality as audited by the Auditor General and approved 
by Council. 

Baseline 

Current level of performance that a Municipality aims to improve when setting performance 
targets. The baseline relates to the level of performance recorded in a year prior to the planning 
period. 

Basic municipal 
service 

A municipal service that is necessary to ensure an acceptable and reasonable quality of life to 
citizens within that particular area. If not provided, it may endanger the public health and safety or 
the environment. 

Budget year 

The financial year for which an annual budget is to be approved - means a year ending on 30 

June. 

Cost indicators 

The overall cost or expenditure of producing a specified quantity of outputs. 

Distribution 

indicators 

The distribution of capacity to deliver services. 

Financial 

Statements 

Includes at least a statement of financial position, statement of financial performance, cash-flow 
statement, notes to these statements and any other statements that may be prescribed. 

General Key 
performance 
indicators 

After consultation with MECs for local government, the Minister may prescribe general key 
performance indicators that are appropriate and applicable to local government generally. 

Impact 

The results of achieving specific outcomes, such as reducing poverty and creating jobs. 

Inputs 

All the resources that contribute to the production and delivery of outputs. Inputs are "what we 
use to do the work”. They include finances, personnel, equipment and buildings. 

Integrated 

Development Plan 
(IDP) 

Sets out municipal goals and development plans. 


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DEFINITIONS 

National Key 

Performance 

Areas 

* Service delivery and infrastructure; 

* Economic development; 

* Municipal transformation and institutional development; 

* Financial viability and management; and 

* Good governance and community participation. 

* Cross cutting 

Outcomes 

The medium-term results for specific beneficiaries that are the consequence of achieving specific 
outputs. Outcomes should relate clearly to an institution's 

Performance 

Indicator 

Indicators should be specified to measure performance in relation to input, activities, outputs, 
outcomes and impacts. An indicator is a type of information used to gauge the extent to which an 
output has been achieved (policy developed, presentation delivered, service rendered). 

Performance 

Information 

Generic term for non-financial information about municipal services and activities. Can also be 
used interchangeably with performance measure. 

Outputs 

The final products, or goods and services produced for delivery. Outputs may be defined as "what 
we produce or deliver”. An output is a concrete achievement 

Performance 

Targets 

The level of performance that municipalities and its employees strive to achieve. Performance 
targets relate to current baselines and express a specific level of performance that a Municipality 
aims to achieve within a given time period. 

Service Delivery 
and Budget 
Implementation 

Plan 

Detailed plan approved by the mayor for implementing the Municipality’s delivery of services; 
including projections of the revenue collected and operational and capital expenditure by vote for 
each month. Service delivery targets and performance indicators must also be included. 


ACRONYMS 

MM 

Municipal Manager 

DEA 

Department of Environmental Affairs 

UDM 

UMzinyathi District Municipality 

DORA 

Division of Revenue Act 

ECD 

Early Childhood Development 

EIA 

Environmental Impact Assessment 


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ACRONYMS 

SMT 

Senior Management Team 

EPWP 

Expanded Public Works Programme 

FARMCO 

Fraud-and-Risk Management Committee 

FEIR 

Final Environment Impact Report 

GIS 

Geographic Information System 

GRAP 

Generally Recognised Accounting Practice 

GV 

General Valuation 

HIV 

Human Immunodeficiency Virus 

HR 

Human Resources 

ICOSA 

Independent Civic Organisation of South Africa 

ICT 

Information and Communication Technology 

IDP 

Integrated Development Plan 

IEM 

Integrated Environmental Management 

IMFO 

Institute of Municipal Finance Officers 

INEP 

Integrated National Electrification Funding 

IRDP 

Integrated Residential Development Program 

ISAMAO 

Institute of Municipal Accounting Officers 

IWMP 

Integrated Waste Management Plan 

KFA 

Key Focus Area 

KPA 

Key Performance Area 

KPI 

Key Performance Indicator 

LED 

Local Economic Development 

SDF 

Spatial Development Framework 


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ACRONYMS 

MFMA 

Municipal Finance Management Act 

MIG 

Municipal Infrastructure Grant 

MPAC 

Municipal Public Accounts Committee 

MSA 

Municipal Systems Act 

MSCOA 

Municipal Standard of Accounts 

NGO 

Non-Governmental Organisation 

NPO 

Non-Profit Organisation 

NQF 

National Qualification Framework 

NQF 

National Qualification Framework 

PMS 

Performance Management System 

PPP 

Public Private Partnership 

RBIG 

Regional Bulk Services Infrastructure Grant 

SAHRA 

South African Heritage Resources Agency 

SALGA 

South African Local Government Association 

SAN 

Storage 

SAPS 

South African Police Service 

SCADA 

Supervisory Control and Data Acquisition 

SCM 

Supply Chain Management 

SDBIP 

Service Delivery and Budget Implementation Plan 

SDF 

Spatial Development Framework 

SDLC 

Systems Development Life-Cycle 

SEDA 

Small Enterprise Development Agency 

ESMT 

Extended Senior Management Team 


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ACRONYMS 

SO 

Strategic Objective 

SOP 

Standard Operating Procedure 

SPCA 

Society for the Prevention of Cruelty to Animals 

STATSSA 

Statistics South Africa 

SV 

Supplementary Valuation 

TASK 

Tuned Assessment of Skills and Knowledge 

UIF 

Unemployment Insurance Fund 

UISSP 

Upgrade of Informal Settlement Support Programme 


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Chapter 1: Executive Mayor's Foreword and Executive 
Summary 


Chapter 2: Governance 


Chapter 3: Service De livery Performance (Performance 
Report) 


Chapter 4: Organisational Development Performance 


Chapter 5: Financial Performance 


Chapter 6: Auditor -General Audit Findings 

r 


Appendices 


\ 


/ 


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CHAPTER 1: MAYOR’S FOREWORD AND EXECUTIVE SUMMARY 



HER WORSHIP, THE MAYOR CLLR B. P. NGCOBO 


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1.1 MAYORS FOREWORD 

uMsinga Municipality is a home to 180 000 people and boasts of a rich cultural society. uMsinga is 
one of the four local municipalities under the Umzinyathi district in KwaZulu Natal. As a local Municipality 
all initiatives are guided and aligned to the National, Provincial and District plans and strategies. In 2017 
uMsinga municipal Council reviewed and adopted its Vision which is aligned to the NDP 2030. According 
to the NDP it aims to reduce poverty by 2030. According to the plan South Africa can realise the goals 
by drawing on the energies of its people, growing an inclusive economy, building capabilities, enhancing 
the capacity of the state and promoting leadership and partnership throughout society. In line with the 
NDP goals uMsinga Municipality’s vision reads: 


“Commitment towards corruption free governance, infrastructural development, poverty 
eradication and supporting local economic development initiatives towards the financial and 
social emancipation of the uMsinga community” 

The Vision, which encapsulates our commitment towards poverty eradication, is aligned to the District 
Growth and Development strategy, Provincial Growth and Development Strategy and the National 
Development Plan and seeks to create an enabling environment for growth; development; employment 
and job creation; enhancing the quality of life of the uMsinga residents; maintaining good corporate 
governance; and sound financial management. 

The Municipality prides itself with having the most intense public participation mechanisms and in 
2018/2019 the Municipality continued to ensure public participation through various structures and 
programmes. The Municipality adopted a Communication strategy which provides a framework for public 
consultation and public participation. Good governance entails addressing the needs of the public through 
consultation and communication; and being accountable to the citizens of uMsinga as prescribed by 
the Municipal Systems Act, 2000 (Act 32 of 2000). 

Council undertook a number of processes to achieve this goal, including facilitating ward committee 
meetings in all 18 wards, enhancing public participation and consultation processes through izimbizos 
held in every ward, media sessions; holding consultative meetings with a wide range of stakeholders; 
and rebuilding our municipal website. Through these structures the Municipality gets a platform to report 
back to the community on projects during the course of implementation and also on challenges that may 
be hindering those projects. Accountability is enforced through performance contracts and performance 


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agreements which give rise to performance reports on a quarterly basis. The Performance agreements 
are signed by the Mayor who ultimately reports on implementation to Council on a quarterly basis in line 
with the municipal Performance Management System. 

As per the Census 2011 data, it is noted that the number of households within the Municipality is 37,724 with 
19,999 agricultural households. The average household size is 4.6 with 66.7% of all households are female 
headed. uMsinga ’s unemployment is estimated at 55% of the economically active population. This growth in 
population is accompanied by various challenges, in particular the ongoing demand for water and alternative 
energy source especially for those households in the outskirts. Over the past financial year, the Municipality 
managed to reduce the housing backlog working hand in hand with the department of Human Settlements, the 
Municipality continues to eradicate the housing backlog. The backlog stated by the Housing Sector Plan is not 
accurate seeing that the plan is more than five years old which means the actual backlog cannot be quantified. 
With this in mind the Municipality in 2019/2020 will embark on reviewing the HSP to get an accurate picture of the 
backlog while continuing with the Department of Human Settlements in providing new housing. 

The Municipality embarked on a number of infrastructure projects with an intention to envisioned accelerated 
growth. These projects are only possible through strategic partnerships with other spheres of government, the 
private sector and the community of uMsinga. The Municipality remains indebted to the Department of Transport 
for the construction of the two-way bridge in Tugela Ferry which on completion, will enable traffic flow and assist 
in alleviating the traffic congestion in Tugela Ferry. 

The Department understands that an investment into the infrastructure is paramount in attracting investors. 
Amongst the various projects in the year under review, of note is the Kopi widening. I would like to extend my 
appreciation to the community for their patience, Kopi upgrading has been a multimillion and multiyear project and 
on completion will ease traffic and make uMsinga much more accessible. 

The Municipality has over the years embarked on a number of infrastructural projects, including access roads 
construction and has successfully constructed a number of community facilities over the years. In 2018/2019 a 
total of 18 community halls, 09 creches and 06 classrooms were successfully constructed. Job creation is at the 
core of local government and in line with outcome 4 which talks to decent employment and inclusive economic 
growth the Municipality has given job opportunities to about 1000 women responsible for road maintenance. 
uMsinga community is dominated by women and the majority of households are led by women, thus the labour- 
intensive projects such as Siyazenzela road maintenance are geared towards the employment of women in all 18 
wards. The Municipality utilizes its EPWP grant towards this goal as well as its own equitable share funding. 


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If we want to successfully participate in the global economy, we have to be ready to converse at the platforms the 
fourth industrial revolution brings, to this end uMsinga Municipality is pleased to announce that together with the 
Department of Education have established a new Cwaka FET college. Having this institution means the 
Municipality can develop people with industry expertise who need to be proficient in digital or problem-solving 
skills. If educational institutions, employers and employees can imagine and refine a solution together, continuous 
uptraining could become a crucial tool to help individuals adapt to relentless change. We are about reinventing the 
future of work, and that initiative is not only a responsibility for us as government but for all of us, the private sector 
should also come on board. We are pleased to announce that an ICT centre will be established in Pomeroy with 
an intention of ensuring that our youth is computationally literate. The intention is to shape our youth to be more 
efficient and employable in automated technological world. 

2018/2019 has been a rather challenging year where we unfortunately lost a valuable member of the Executive 
Council, Councillor MPS Mshibe who was the ward Councillor for ward 02. I would like to express my heartfelt 
condolences to his family and the community of ward 02. In the same breath, I wish to thank the community of 
ward 02 for peacefully conducting the by-elections and welcoming their brand-new ward Councillor, Councillor 
Thenjiwe Mbatha. I trust that you will show her the support and adoration that you showed to the honourable late 
Councillor Mshibe, may He rest in eternal POWER. 

The Batho Pele principles as well as the Municipal Systems Act, 32 (Act 32 of 2000) section 46 (1) prescribe that 
the community deserves “Redress” to be informed of the services that were promised but not rendered and the 
reasons for variance as well as measures taken to ensure performance improvement. In line with the above pieces 
of legislation, the Municipality identified slow progress on electricity projects at Phalafini and Douglas, these 
projects were not started on time due to financial constraints however it is encouraging to see that in 2019/2020 
these projects have been prioritized and budgeted for. Another delay on the electrification projects resulted from 
Eskom taking long to energise completed connections, to this end the Municipality has decided to continue 
strengthening relationships with Eskom and other relevant stakeholders so as to improve performance. 

Another cause for concern from the year under review has been the water projects that are implemented by 
Umzinyathi district within uMsinga municipal area, these have led to a lot of protest and community unrest. There 
have been road blockages at Keates Drift and other areas. The Municipality continues to sit in the 
intergovernmental meetings (IGR) to represent the needs and to Fastrack the provision of basic services and 
continues to ensure that communities are involved in the local government matters. The community of Pomeroy 
also voiced their concerns over the Pomeroy Mall that had been approved by the Municipality ages ago but to this 
day nothing has happened. There have been several community meetings called with the Pomeroy Mall developers 
(Dewaning), with the informal traders and taxi owners to inform the community of the progress on the Pomeroy 
Mall project. 


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I would like to express my heartfelt gratitude to my fellow Councillors, Deputy Mayor, Speaker, Exco members, 
Directors and the members of staff for their hard work and commitment. We wish to thank Amakhosi, Government 
Departments, the Business Community, uMsinga Residents and all the stakeholders who have contributed to 
making our Municipality a better place to reside in. Whilst there have been notable successes to date, there is also 
acknowledgement that new and innovative ways need to be explored to bring about growth and development 
necessary to create employment and a better place to live in. Lastly, I would like to extend my sincere appreciation 
to the community at large, NGOs, Religious leaders, IEC, for the successful and peaceful elections in May 2019.00 


CLLR B.P. NGCOBO 
HER WORSHIP THE MAYOR 


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THE MUNICIPAL MANAGER: MR S.L. SOKHELA 


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1.2 MUNICIPAL MANAGER’S FOREWORD 

uMsinga Municipality is a Category B Municipality with powers and functions assigned in terms of 
Sections 155 and 156 of the Constitution of the Republic of South Africa, 1996 (local government matters 
referred to in Schedules 4 and 5). These powers and functions are exercised subject to Chapter 5 of the 
Municipal Structures Act, 117 of 1998 and Chapter 3 of the Local Government Municipal Systems Act, 
32 of 2000. The Municipality covers an area of 1,539 km 2 and consists of 18 wards. There are a number 
of natural and man-made phenomenon’s that have shaped and continue to shape the uMsinga 
Municipality. uMsinga Municipality’s population is relatively dispersed and where services exist, they 
are concentrated along the main road (R33), water sources such as the Tugela and Mooi River. The main 
towns are Pomeroy, Keates Drift and Tugela Ferry. 

In line with the municipal vision to achieve corruption free governance, The Municipality has adopted a 
zero-tolerance stance to all forms of corruption, fraud and maladministration and has established 
numerous measures to prevent fraud and corruption in the Municipality through oversight structures. 
These include the oversight structures such as the Municipal Public Accounts Committee (MPAC), Risk 
Management & Fraud Committee, an Internal Audit, an Independent Audit Committee (AC) and a 
Performance Audit Committee (PAC). These committees met quarterly in 2018/2019 fiscal year with an 
intention to perform their oversight responsibilities on non-financial and financial management and the 
overall integrity of the Municipality. 

Other challenges faced by the Municipality include rampant illegal buildings, that tarnish the image of the 
Municipality and undermine the spatial vision of the Municipality despite our efforts to ensure proper 
Spatial Planning. The Municipality has mitigated such problems by employing technical expertise to 
uphold the Planning legislations as well as ensure enforcement. The Municipality established a new 
Traffic Unit housed in the Department of Community Services; the Traffic unit is not fully functional at 
present. The Municipality is awaiting approval from the Department of Transport. 

I'm pleased to report that as the Municipality we were invited by our counterparts in Sweden to showcase 
uMsinga’s talent and crafts at their exhibition in Sweden in august 2018. The nature of the invite also 
meant forging a long term mutually beneficial relationship between the two. The Municipality’s investment 
in the Local economic Development component has raised confidence in the Municipality’s ability to 
create job opportunities through the Arts and Crafts. This presents an excellent opportunity to learn from 


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our Swedish counterparts and venture into the business of exporting crafts, and possibly more in the near 
future. Another accolade came from the Abor city Award, the Municipality was awarded an amount of 
R100 000.00 for the greening of cities (Keates Drift, Tugela Ferry and Pomeroy). 

Another successful initiative in LED has been in hosting an empowerment workshops to advance local 
entrepreneurs. The Business Indaba was hosted by the Municipality in collaboration with Ithala at 
UMphelankani in ward 04 in June 2019 with an intention to give uMsinga SMMEs an opportunity to 
showcase their work, to be empowered by the reputable businessmen who presented, demonstrations 
and partnerships with big business and to contribute meaningfully in the Local Economic Development. 
We acknowledge the role of Provincial and National government and regularly engage on platforms to share 
information and best practices. These platforms include but are not limited to SALGA, IMFO, Premiers Coordinating 
Forum and Municipal Managers Forum. The Municipality also participates in District IGR structures namely the 
Mayors Forum, Speakers forum, the MMs Forum, and other senior managers forum which are hosted at uMzinyathi 
District Municipality in Dundee. 

There have been significant changes in the municipal administration during the previous year 2017/2018, the year 
of comparison. A new Municipal Manager was appointed to act as from the beginning of February 2018 and the 
final appointment was made in July 2018. Three new Directors respectively for Corporate Services, Community 
Services and Chief Financial Officer were also appointed in the last quarter of 2017/2018 and started working in 
July and August 2018. The beginning of 2018/2019 brought a lot of changes on the municipal structure and resulted 
in a new Department being formed, Development Planning services with a sole purpose to ensure local economic 
development and planning. The HOD for the Development Planning services and the HOD for Technical services 
were vacant at the beginning of 2018/2019 fiscal year. We started the year with 60% vacancy rate and closed the 
year 2018/2019 at 100% on critical vacancies filled. 

This Annual Report which is guided by values of transparency, excellence, responsiveness, accountability, 
accessibility and integrity is hereby presented the various key service delivery improvements achieved during the 
year under review are a result of good planning and execution. Numerous important projects were completed which 
inter alia covered roads and electricity connections. These are providing thousands of uMsinga residents with 
improved basic services, setting the tone for future economic growth and development. The Municipality’s strategic 
planning was also supported by risk management. The following top five risks were identified: 

• Failure or inability to maintain and manage assets; 

• Failure to manage and mitigate the impact of adverse environmental, social, economic and other local, 
national and global conditions; 

• Inability to meet the human settlement demands; 


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• Inability to manage illegal actions; and 

• Inadequate human resource management. 

The overall financial performance of the Municipality in 2018/2019 confirms sound financial management, 
with the revenue steadily increasing year on year in line with the annual target. (As depicted in the AFS 
attached) Overall, uMsinga Municipality remains focussed on fulfilling its vision and commitment to its 
residents and business community on all service delivery fronts. uMsinga Municipality has most targets set 
out in uMsinga Municipal Integrated Development Plan Review as adopted 27th May 2018, SDBIP Top Layer 
(organisational scorecard) and the Municipal Performance Plans. Through various public participation process 
uMsinga citizens have been kept abreast and culminated their concerns and suggestions into municipal strategic 
operations. Council has been able to set its Annual Performance Plans, linked to individual performance 
agreements with realistic, measurable targets. These have been assessed and amended on a quarterly basis in 
line with the resources to ensure that alignment with IDP and Budget is attained. The Municipality has successfully 
achieved most of its infrastructure targets in the year 2018/2019. Where underperformance was noted, steps have 
been put in place to ensure performance improvement. 

The Municipality has successfully transitioned from hard copy to completely electronic Council agendas. The 
Municipality rolled out Laptops and Tablets to all Councillors as part of their tools of trade. This was an initiative 
inspired by the Municipality’s need to go all paperless and be kinder to the environment. It was also in line with the 
cost containment resolutions taken by Council to cut down on printing cost. The Municipality has successfully 
implemented budget practices in-line with the Municipal Standard Charts of Accounts (MSCOA). The Municipality 
is transacting on MSCOA however there still some teething challenges with the system vendor MUNSOFT which 
are closely monitored. All our suppliers were paid within 30 days (unless there were queries related to SARS 
instructions and incorrect invoicing). The Municipality collected indigent data during the year 2018/2019 and a new 
indigent register is now in place to enable the Municipality to administer its Free Basic Service. 

The Municipality ensures accountability and improved governance; this has seen the Municipality moving from a 
qualified audit opinion in 2016/2017 to an unqualified audit opinion in 2017/2018 fiscal year. In ensuring that the 
Municipality addressed the AG concerns the Municipality developed an action plan with an intention to closely 
monitor all the findings that were highlighted by the Auditor General. The action plan as at 30 June is sitting at 90% 
achieved. I would like to express my sincere gratitude to the Political leadership and the Council of the Municipality 
and to my wonderful staff members who have worked tirelessly to ensure the smooth operation of the Municipality. 


MR SENZO L. SOKHELA 
MUNICIPAL MANAGER 


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1.3 MUNICIPAL OVERVIEW 

1.3.1 INTRODUCTION 

The Annual Performance Report is hereby submitted to the uMsinga Municipal Council in terms of the 
Municipal Systems Act (MSA), 32 of 2000, section 46(1) and (2), as well as the MFMA Circular 11 on 
annual reporting. This report covers the performance information from 01 July 2018 to 30 June 2019 and 
focuses on the implementation of the Service Delivery and Budget Implementation Plan (SDBIP), in 
relation to the objectives as encapsulated in the Municipality’s Integrated Development Plan (IDP) for the 
year under review. This report reflects actual performance of the Municipality as measured against the 
performance indicators and targets in its Integrated Development Plan (IDP) and Service Delivery and 
Budget Implementation Plan (SDBIP) for 2018/2019 fiscal year. 

The format of the report will reflect the Municipality’s Key Performance Indicators (KPI) per Municipal Key 
Performance Area. Each Municipal Key Performance Area (KPA) has a number of focus areas which had 
been deliberately designed by the uMsinga Municipality to focus its development initiatives in an 
attempt to achieve the desired future as enshrined in the IDP. 

This report is structured to present to Council with regards to Municipality’s performance in terms of the six 

(6) National Government’s Strategic Key Performance Areas for local government, which are: 

(1) Basic Service Delivery; 

(2) Local Economic Development 

(3) Municipal Institutional Transformation and Development; 

(4) Municipal Financial Viability and Management, 

(5) Good Governance and Public Participation, and 

(6) Cross cutting measures 

The report emanates from the municipal organizational scorecard and performance is measured based on the 
targets set and agreed upon at the beginning of the year. 

1.3.2 LEGISLATIVE REQUIREMENTS 

This Annual Performance Report has been compiled in compliance with the requirements of section 46 (1) of the 
Local Government: Municipal Systems Act, 32 (Act 32 of 2000); which stipulates as follows: 


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(1) Municipality must prepare for each financial year a performance report reflecting— 

a) the performance of the Municipality and each external service provider during that financial year; 

b) a comparison of the performance referred to in paragraph (a) with targets set for performance in the 
previous financial year; and 

c) measures taken to improve performance. 

In addition, Regulation 7 (1) of the Local Government: Municipal Planning and Performance Management 
Regulations, 2001 states that “A Municipality’s Performance Management System entails a framework that 
describes and represents how the Municipality’s cycle and processes of performance planning, monitoring, 
measurement, review, reporting and improvement will be conducted, organised and managed, including 
determining the roles of the different role players.” Performance management is not only relevant to the 
organisation as a whole, but also to the individuals employed in the organisation as well as the external service 
providers and the municipal entities. 

1.3.3 PERFORMANCE MANAGEMENT OVERVIEW AND PROCESS 

In order to improve on performance planning, implementation, measurement and reporting, the Municipality 
implemented the following actions; Departmental Scorecards (operational plans) were developed for monitoring 
and reporting operational programmes; these emanate from the performance plans signed by HODs at the 
beginning of the financial year. 

A manual performance management system is operational within the Municipality. The same system forms the 
basis of performance evaluations of the HODs i.e. s.56 Managers reporting directly to Municipal Manager. The 
Municipality endeavoured during the development of the Top Layer Service Delivery and Budget Implementation 
Plan (SDBIP) as well as with the development of the Departmental scorecards that inform the SDBIP that the 
“SMART” principle be adhered to in the setting of indicators and objectives. Emphasis was placed on ensuring that 
targets were specific and time bound, thus making it measurable. 

The uMsinga Integrated Development Plan (IDP) was developed for 2017-2022 as the strategic document that 
informs all operations at a municipal level. As the Municipal Systems Act section 28 and 32 allows, uMsinga IDP 
has been reviewed for 2019/2020 and adopted by Council. It remains the primary document that informs all plans 
of the Municipality. The IDP review process facilitates the process of monitoring, reviewing, and reporting on the 
performance indicators and provides for an opportunity for public participation in line with the IDP structures. 

1.3.4 LEGISLATIVE ANNUAL PERFORMANCE REPORT 2018-2019 

This report is influenced by these legislated reports and structures: 


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PMS Structures & reports 

Performance Management System Checklist: 

Status 

All MSA s57/56 Performance contracts & 
Performance agreements. 

Were signed in July 2018 completed and submitted 
to DCOGTA by August 2018 

new recruits signed in June 2019 

y 

The Municipal Performance 

Management Framework. 

Reviewed and adopted 28 

May 2019 

y 

Municipal Public Accounts Committee 

(MPAC) 

In place 

y 

Annual Reporting 

In place 2017/2018 

y 

Quarterly Performance Reporting to 

Council 

In place 

y 

Audit Committee & 

Performance Audit Committee 

In place since April 2018 

In place since April 2018 

y 

Performance evaluation Committee 

In place 

y 


1.3.5 SPATIAL ANALYSIS: 

1.3.5.1 REGIONAL CONTEXT 

uMsinga Municipality is a local (Category B) Municipality established in December 2000 as one of the four local 
municipalities constituting the uMzinyathi District Municipality in the northern part of the province of KwaZulu-Natal 
and the Municipality is seated in the town of Tugela Ferry. The Municipality consist of three towns namely Tugela 
Ferry, Keats Drift and Pomeroy. The uMsinga Municipality is illustrated by a map attached below as figure 5: 
National Locality in the south western part of the district Municipality area, and shares its boundaries with the 
Nqutu, Nkandla and Umvoti. 


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MOZAMBIQUE 


SWAZILAND 


FREE STATE 


y-Umzin y^ \^- 4 

/ KwlSSW^ATAL 


'Uthukela' 


'Wns 

■.petshwayi 


eThekwinii 


EASTERN CAPE 


eDumbe 


UPhongolo 


Emadlangeni 


lewcastle 


Dannhauser 


Mpofana 


nMshwathi 


uMngeni 


Impendle 


pHi 


Richmond 


Mkhambathinl 




Ubuhlebezwe 


Umzimkhulu 


Greater 

Kokstad 


Umzumbe 


UMuziwa bantu fUhm 


_ESOTHO 


■ Kilometers 
120 


Msinga Local Municipality 
SDF2019 


Locality Map 


MAP 1: MSINGA MUNICIPALITY LOCALITY WITHIN KZN 


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Osizweni; 


'Newcastle 


Emadlangeni 


^Ballfengeich 


Blood River 


Kingsle^J 


Msinga Local Municipality 
Locality Within Umzinyathi DM 


j \Dannhauser 

Dannhauser 


Ntabebomva_. 


Hattin^spruit 


>Fort Mis take. 


Alfred 

ft 1 a— 

■D.uma/ 


Itgifaiiimeriiil 


Ulundi 


Graigsforth 


Matiwir 


Elandslaagte’ 


Helpmekaar 


Ekuvukenr 


. Alfred- Duma^ ' 


Elandskraal 


Rockclitf 0 


^'•Sams Hoe I? 

V ) 


Pomeroy; 


Umbulwana ^ z ?, kher J' 


‘Mthqpja’me'n 

. Nk*anqia atiT* 


Msinga 


■Qudeni' 


n 

A 

FBjolwSna ;jk- 


Pieters 


MugeiaJ 

istateT 


Ghieveley 


Weenen 


Keate's Drift 


'y £i§|V| 

LAanqalibalele 


uMlalazi , 


fM idfiled ri ft” 


ijam till 


iM bpngbiwanel 


Kranskop^ 


Urhvoti 


Maphumulo 

pSi 

Ndwedw.e 


Greytown 


Towlands 


Hidcot 


• The Grove 


South'Dow ns. 


'Mount-Alidad 

£2“ 


levenoaks 


iN^weaw^ 


uMshwathi 

OO I 


,r uMng'e’ril 

1 1 t j o 

p Nottingnafni( 

Road 


• 7 Ndwedwe 

-V T V fir 


KwaDukuza 


Fawn leas 


MAP 2: MSINGA MUNICIPALITY LOCALITY WITHIN UMZINYATHI DISTRICT MUNICIPALITY 


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■Cenrafiauser 


kHattingspruit 


Cra igsforth 


LHeipmetaar 


Etai wjkeni 


Manger, i 


Rockdif 


'DtoU’ina 


Ngub gvul 


rWbenen 


IMiddledrift 


>»unjan>biLj 


Krarskop 


KwaSeaban'tL 

Missibl?HBr 


Vac -" - : 


'Mount. 


New Har-SverJ 


Umzinyathi 
District Municipality 


MUNICIPAL & WARD 
BOUNDARIES 2016 


HartsfHi 






Legend 

• Towns 
• Railways 
Major Roads 
Secondary Roads 
MUNICNAME 

Endumeni Local Municipality 
<? Msinga Local Municipality 
Nqutu Local Municipality 
* Umvoti Local Municipality 
U mzinyath i_Wa rd s 
Umzinyathi District Municipality 
Rivers 
Dams 


MAP 3: WARD BOUNDARIES WITHIN UMSINGA MUNICIPALITY 

The table below reflects the eighteen (18) wards that make up uMsinga Municipality. 


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WARD 

GENERAL 

AREAS WITHIN WARD 

WARD 1 

Councillor: K. Sithole 

Population: 4551 

Extend 53.24 km 2 

Douglas, Dumbe, Nhlanhleni, Mpompolwane, Ntanyazulu, 

Mkhuzeni, Mpondweni, Nzimane, 

WARD 2 

Councillor. B. Mbatha 

Populations 31 

Extent: 126.64 km 2 

Bhaza, Gobho, Ntuli, Gunjana, Ngubule, Macanco, 

Ngabayena, Nkamba, Matshematshe, Mzweni, 

WARD 3 

Councilor: J.V. Langa 

Population: 4028 

Extent: 115.00 km 2 

Phalafini, Mambeni, Ngubo, Ncengeni, Esijozini, 

WARD 4 

Councilor: M.W. Sokhela 

Population:4399 

Extent: 66.37 km 2 

Mabizela, Sikhaleni, Sampofu, Enyandu, 

KwaNtonga/Nkandla 

WARDS 

Councilor: L.E Danisa 

Population:3721 

Extent: 346.67 km 2 

Mbabane, KwaMathonsi, Malomeni 

WARD 6 

Councilor: P. Dladla 

Population: 4050 

Extent: 72.83 km 2 

Mnqamukantaba, Mathinta, Mduna, Jolwayo, Mashunka, 

Guqa 

WARD 7 

Councilor: M. Sithole 

Population: 4489 

Extent: 62.46 km 2 

Mhlangana, eNhlalakahle, Embangweni 

WARD 8 

Councilor: B. Dumakude 

Population: 4018 

Kwantabadini, iNhlonze, Ekuvukeni, Ntabakayishi, 

Nkonyane, Nxamalala, Mandulaneni 


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WARD 9 


WARD 10 


WARD 11 


WARD 12 


WARD 13 


WARD 14 


WARD 15 


WARD 16 


Extent: 65.71 km 2 

Councilor: M.S. Khoza 
Population: 3385 
Extent: 91.10 km 2 

Councilor: S. Magubane 
Population: 3928 
Extent:48.17 km 2 

Councilor: L.B Ntuli 
Population: 3955 
Extent: 41.40 km 2 

Councilor: B.P Ngcobo 
Population: 3754 
Extent: 125.85 km 2 

Councilor: D.M. Ndlovu 


eSinyameni, Sinyama, Ntababomvu, Ophathe, Gujini, 


Dungamanzi, KwaKopi, Fabeni, Ethembeni/Gudwini 


Othulini IweZulu, Mawozini, Latha 


KwaDolo, Nqoleni, Nzalo, KwaMazongwane, 
Phakwe/Nodlozi 


Nhlesi, Mkhupula, Ndaya, Nhlonga, Latha 


Population: 3503 
Extent: 163.45 km 2 

Councilor: S.G. Masimula 
Population: 3573 
Extent: 72.19 km 2 

Councilor: Myeza 
Population: 3570 
Extent: 94.92 km 2 

Councilor: T.L. Kunene 


Othame, Tugela Ferry, Gxobanyawo, Ezingulubeni, 
Mbhono, 


Nqabeni, Hholwane, Othame, Ngubevu 


Esifuleni, Mngeni, Gqohi, Ngubukazi, Gxutshaneni 


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Population: 3769 
Extent: 169.26 km 2 

WARD 17 Councilor: N. Majozi 

Population: 4258 
Extent: 63.49 km 2 

WARD 18 Councilor: T.M. Mabaso 

Population: 3681 
Extent:!77.35 km 2 


Pomeroy, Gabela, Makhasane, Mbindolo, Makhankane, 
Ngubukazi 


Emthaleni, Woza, Mahlaba, Mazabeko, Embidlini, 
Mbizimbelwe 


1.3.5.2 ADMINISTRATIVE ENTITIES AND LAND OWNERSHIP 

uMsinga Municipality has 18 wards as illustrated in the Land ownership map below. Nine wards are held in trust 
under Ingonyama Trust Board, 8 wards are state land while about half the land in ward 19 is privately owned. A 
pocket of state-owned land occurs in ward 12,17,18 and ward 11. It is clear that the Municipality is split into two 
larger distinct land ownership areas, with the southern part of the Municipality falling mostly under the ownership 
of the Ingonyama Trust Board, with the northern part falling under various types of ownership. 


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Endumeni 


j^Helpmekaar. 


Ektivukeni 


‘Elandskraajj 


Alfred Duma 


Rockcliff 


Klipriviel 


.Msinga 


Tugela Ferry 


Umvoti 


Mpofana 


Mude'n, 


/Mpofana^, 


Nkandla 
.-Umvoti 


Inkosi 


liangalibalele 


Inkosi 

Langalibalele 


Projection: WGS 84 
Source: Umzinyathi GIS Data 
Produced by: 

UMzinyathi GIS Office: 

Spatial Information Unit 
Contact Details 
gis@umzinyathi.gov.za 
0342191500 


13,5 


18 

■ Kilometers 


Msinga Local Municipality 
Land Ownership 


Legend 

• Tow ns 
Railways 

•'V*—■ MainRoads 


dj Private 
Municipal 
dV State Land 


Secondary Roads Traditional Authority 

Msinga Wards Unknown 

Land_ownership 

Commercial 


MAP 4: MSINGA MUNICIPALITY LAND OWNERSHIP 


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1.3.5.3 DEMOGRAPHIC INDICATORS 

1.3.5.3.1 Key findings (including Trends) 

In 2011 the total population is estimated to be 177 577, in 2001, the estimated population was 168 000, a 0% 
increase from 2001. The population growth between 1996 and 2001 was 4.20%. The 2007 data indicated that 
the figures dropped to 161 894 people with a total of 32 592 households. The Municipality accounts for a third of 
the uMzinyathi DM’s population. The decline in population can be caused by a number of reasons as follows: 

• An over-count in the 2001 Census of population; 

• An under-count in the 2007 Neighbourhood survey; 

• A net out-migration of residents in search of work in the major urban centres of the country; and 

• The impact of deaths caused by HIV/Aids. 


% 




Endumeni 

Nqutu 

Msinga 

Umvoti 


■ 2001 

io,6 

35,3 

34,8 

19,2 

■1 2011 

12,7 

32,4 

34,8 

20,2 

FIGURE 1: DISTRICT POPULATION STASSA 2011 

Municipality 

Census 2011 

CS 2016 


N 

% 

Household 

N 

% 

Household 

Endumeni 

64 862 

12.7 

16,852 

76639 

13.8 

21134 

Nqutu 

165 307 

32.4 

31,613 

171325 

30.9 

32622 

uMsinga 

177 577 

34.8 

37,723 

184494 

33.3 

38372 

UMvoti 

103 093 

20.2 

27,282 

122423 

22.1 

34664 

Umzinyathi 

510 838 

100 

113,470 

554 882 

100 

126791 


TABLE 1: DISTRICT POPULATION STASSA 2016 

The population of UMsinga equates to a population density of 68 people per square kilometre and the 
population is largely concentrated around the towns of Tugela Ferry (including UMsinga Top area), 


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Keates Drift and Pomeroy. Other significant settlement areas are located along the eastern boundary of 
the Municipality known as the Mkhuphula node, western boundary known as the Mashunka/ Nhlalakahle 
node and to the north eastern boundary known as the Mazabeko node. The gender structure of the 
uMsinga LM is significantly female dominated in the age categories of 25 years and older. Conversely, 
the population younger than 19 years of age is however somewhat male dominated. The high 
unemployment rate resulting from a lack of economic activities and the limited economic base of the 
Municipality results in many male household members leaving the Municipality in search of employment 
and income generating activities in other areas. Although the impact of HIV/Aids on the population 
structure is not quantified at municipal level, it can be expected that the influence of HIV/Aids in the 
stagnant demographic structures for 2011 has been an important contributing factor. 

1.3.5.3.2 Population Growth Expectations 

Population and household growth is one element that determines the long-term demand for goods and 
services. Based on historical population figures from 1995 to 2010, a trend analysis was done for the 
uMsinga Municipality by the uMzinyathi District. Accordingly, curves were fitted to the data and were 
selected based on the best correlation coefficient that could be determined through the least squared 
method. The following polynomial expression were determined and used to project population figures up 
to 2025 for the Municipality. 


Local Municipality 

Growth Expression 

R-squared value 

uMsinga 

y = 0.0893x3 - 86.812x2 + 1677,6x + 160892 

0.8976 


TABLE 2: GROWTH EXPRESSION 

This equation that was calculated was then used to project historical data as shown in the next graph 
based on the population projections below. 


LM 

1995 

2005 

2012 

2013 

2014 

2015 

2020 

2025 

uMsinga 

162 

169 

163 

162 

160 

158 

147 

132 


697 

691 

483 

040 

434 

665 

394 

132 


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TABLE 3: POPULATION PROJECTIONS 

1.3.5.3.3 Gender Profile 

The trend emanating shows that there are more females and more elderly women. From the age 20, men 
are halved perhaps due to economic opportunities and death. There is population largely under the age 
of 5 which puts a need for educational facilities, tertiary institutions and social facilities. As a forward 
planning mechanism, the Municipality needs to plan for the provision of tertiary institutions. 

According to STATSSA’s Community Survey (2007), 57.2% of the population of uMsinga are female, 
while 42.8% male. The high percentage of male absenteeism in the employment age group 20 to 64 
years could be considered to be an indication of a weak economy, as men have always been expected 
to leave the area to seek employment as there are limited employment opportunities in uMsinga. The 
erosion of the population in the economically active age categories (specifically between 25 and 35 years 
of age) implies that the district is losing part of its population which is normally regarded as the segment 
of the population making a significant contribution to the local economy. 


Broad Age 

DC24: 

Umzinyathi 

KZN241: 
Endumeni 

KZN242: 

Nqutu 

KZN244: 

Msinga 

KZN245: UMvoti 

0-14 (Children 

38 

30 

40 

42 

34 

15-34 (Youth) 

40 

45 

39 

38 

42 

35-64 (Adults) 

15 

18 

13 

14 

17 

65+ (Elderly) 

7 

7 

7 

7 

7 

Total 

100 

100 

100 

100 

100 


TABLE 4: UMZINYATHI BY BROAD AGE (PERCENTAGE)CS 2016 (STATS SA) 


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Msinga Municipality 

65+ (Elderly) 

35-64 (Adults) 

15-34 (Youth) 

0-14 (Children 

-60 -50 -40 -30 -20 -10 0 10 20 30 40 50 

■ Male ■ Female 

FIGURE 2: MSINGA MALE/FEMALE AGE GROUPS CS 2016 STATS SA 

As can be seen from the table below, the majority of the population (48.7%) are located in the 15 to 64- 
year age cohort, followed closely by 44.6% of the population in the 0 - 14 years’ age cohort. The 
STATSSA information indicates that the average age in the Municipality is 24 years and that there is a 
very high dependency ratio. 


Broad Ages 

DC24: Umzinyathi 

KZN241: 
Endumeni 

KZN242: 

Nqutu 

KZN244: uMsinga 

KZN245: UMvoti 

Male 

Female 

Male 

Female 

Male 

Female 

Male 

Female 

Male 

Female 

0-14 

(Children 

42 

35 

30 

30 

45 

37 

48 

37 

37 

31 

15-34 

(Youth) 

42 

39 

50 

40 

41 

38 

38 

37 

45 

40 

35-64 

(Adults) 

12 

17 

16 

21 

11 

16 

10 

16 

13 

19 

65+ 

(Elderly) 

4 

9 

5 

9 

4 

9 

4 

9 

5 

10 

Total 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 


TABLE 5: UMZINYATHI POPULATION BY MUNICIPALITIES BY SEX BY BROAD AGE CS 2016 (STATS SA) 

Household growth was projected in the same way as population. As per the uMzinyathi SDF, the 
household growth expressions for each Municipality [derived from the historical data], is shown below: 



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LM 

1995 

2005 

2012 

2013 

2014 

2015 

2020 

2025 

UMSINGA 

29 

858 

34 640 

33 481 

33 013 

32 469 

31 849 

27 614 

21 485 


TABLE 6: ESTIMATED AND PROJECTED NUMBER OF HOUSEHOLDS 

Household size is an important indicator for the demand for services since the number of people in a 
household determines consumption demand for water, electricity, and waste disposal. As per the Census 
2011 data, it is noted that the number of households within the Municipality is 37,724 with 19,999 
agricultural households. The average household size is 4.6 with 66.7% of all households are female 
headed. 

The estimates shown in the table below was derived from the population and households estimates in 
the previous sections sourced from the uMzinyathi SDF. Household sizes are relatively high but it is not 
exceptional for a rural environment. All estimates show a small increase in household sizes. This is based 
on the assumption that there are no structural changes in the population. However, should the higher 
levels of migration materialize; it might imply that they absorb more males, which are not necessarily 
attached to an existing household. This implies more single-person households, which might then lower 
the average household size. The increase is however material to any spatial planning. 


LM 

2012 

2013 

2014 

2015 

2020 

2025 

UMsinga 

4.88 

4.91 

4.94 

4.98 

5.34 

6.15 


TABLE 7: HOUSEHOLD SIZE WITH PROJECTIONS 


Municipality 

Census 2011 

Community Survey 2016 

Head of household 
by age 10-14 

Head of 
household by 
age 15-19 

Total 

Head of household by 
age 10-14 

Head of household 
by age 15-19 

Total 

DC24: 

UMzinyathi 

504 

2310 

2814 

658 

5987 

6645 

KZN241: 

Endumeni 

36 

219 

255 

14 

576 

590 

KZN242: 

Nqutu 

153 

672 

825 

113 

1266 

1379 

KZN244: 

uMsinga 

213 

846 

1059 

199 

2255 

2454 

KZN245: 

UMvoti 

102 

573 

675 

331 

1891 

2222 


TABLE 8: CHILD HEADED HOUSEHOLD CS 2016 (STATS SA) 


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1.3.5.3.4 Migration 

Migration plays an important role in understanding how an area functions in terms of beneficiaries to 
program and facilities as well as employment and settlement profiles. 


LM 

WESTERN 

EASTERN 

NORTHERN 

FREE 

KWAZULU 

NORTH 

GAUTENG 

MPUMALANGA 

LIMPOPO 

OUTSIDE 

UNKNOWN 

GRAN 


CAPE 

CAPE 

CAPE 

STATE 

NATAL 

WEST 




SOUTH 

AFRICA 


D 

TOTAL 

uMsinga 

10 

22 

21 

10 

176 

1 

173 

30 

14 

165 

2 

177 






065 







577 


TABLE 9: PLACE OF PREVIOUS RESIDENCE [WITHIN SOUTH AFRICA] 

1.3.5.3.5 Education Levels and Facilities 

The distribution of level of education confirms the broad socio-economic patterns in the municipal area. 
The next table summarises education levels. Table below indicates levels of education within the 
Municipality, 



Percentage 


0% 10% 20% 30% 40% 50% 60% 

FIGURE 3: HIGHEST LEVEL OF EDUCATION 

Out of the number of the people surveyed; few residents indicated that they have any form of higher 
education. This reinforces the assumption that once people leave the Municipality to do further studies, 


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they very rarely return to the Municipality to exercise their acquired skills. This also has a major impact 
on the development of potential entrepreneurs. 


DESCRIPTION 

TOTAL 

PRIMARY 

LOWER 

PRIMARY 

LOWER 

SECONDARY 

SECONDARY 

SCHOOLS 

173 

102 

12 

7 

52 

CLASSROOMS 

1045 

842 

24 

71 

443 

REGISTERED 

PUPILS 

61,605 

39 222 

1,367 

3,356 

17,720 


TABLE 19: EDUCATIONAL FACILITIES (SOURCE: DEPARTMENT OF EDUCATION) 

The figures released by Statistics SA display a ratio of 40 learners per educator at schools in uMsinga 
with a 58 learner per classroom ratio. From the demographic data mentioned above, the population 
between the age of 5 and 19 is estimated at approximately 73 000, which illustrates an even larger 
backlog in either schools or additional class rooms. Based on the information available, it is apparent 
that a severe under provision in educational facilities occurs within this municipal area. Using the data 
available from Stats SA it is apparent that an additional 241 classrooms would be needed to 
accommodate the 14,000 children not attending school. Approximately 107 schools in the uMsinga area 
have no electricity, 40 have no water and 30 have structural defects (Department of Education). 

1.3.5.3.6 Education Levels and Facilities Health 

The Church of Scotland Hospital, situated at Tugela Ferry, is the only hospital within the Municipal area 
and is centrally located and relatively accessible to the majority of the population. Other hospitals within 
the reach of the general population are located in Dundee, Nquthu and Greytown. Due to a reasonable 
range of health services in the area, the development of an integrated primary health care programme 
should be considered, which should focus on utilizing existing facilities to their maximum. 

A Community health care centre (CHC) in Pomeroy has been completed and is operating as a secondary 
hospital to the Church of Scotland’s in Tugela Ferry. This will help the people residing within Pomeroy 
area enormously. This helps in alleviating the workload of the Scotland hospital staff enabling to give 
more attention to hospitalised patients who are brought in Tugela Ferry from various areas within the 
jurisdiction of uMsinga. 


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a) Welfare 

The offices of the Department of Social Development are situated in Tugela Ferry and the bulk of their 
work is related to foster care and child support, disability and pensioner grants, poor relief, social 
development, creches etc. There are approximately 50 pension pay-outs points distributed throughout 
the municipal area. In almost every case, the pay-outs take place in open area, with no/ very limited 
infrastructure available at these points and it is suggested that the Department of Welfare address this 
matter. In most cases the road adjacent to the pay point on the day of pension payments becomes 
congested and this in turn creates an unsafe situation for both pedestrians and motorists. It is imperative 
that these services be maintained and expanded to areas which are not yet served, as the population is 
most likely dependent on welfare grants as a source, if not the only source, of income. 

b) HIV/AIDS 

According to the latest (2007) Department of Health’s Annual Anti-Natal Clinic testing results, the 
uMzinyathi DM has a 31.7% HIV/ Aids infection rate. A disturbing trend for the Municipality, however, is 
that these figures are up on the 2006 study figures. There are, however, positives in this matter in that 
the uMzinyathi DM has the lowest infection rate of any of the DM's in the province. This aside, it is 
anticipated that this pandemic will have a profound impact on the need for health, social and welfare 
services over the next 20 years. Population growth is expected to decline over this period and this trend 
needs to be considered in the planning and delivery of new services. 

The HIV/AIDS pandemic alluded to above is expected to result in many more orphans within the time 
horizon of this IDP. The UMsinga Municipality has delegated a staff member to assume any functions 
related to HIV/Aids and to this end the Municipality is in close contact with the Departments of Health and 
Welfare in community education and awareness. The HIV/Aids function is not a core function of local 
government but rests within the domain of the Department of Health. The Municipality will however assist 
and support the department of Health in any way possible. To this end the Municipality has in association 
with other governments departments situated in Tugela Ferry have established an HIV/AIDs Council to 
tackle the issues related to the pandemic. 

c) The Aged 

The aged members of the community (over 65 years of age) constitute about 6% of the population, (9000 
people) scattered over the entire municipal area. The Municipality has a high number of aged, hence 
there are programmes aimed at caring and being the lives of senior citizens. As part of operation Sukuma 


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Sakhe, senior citizen care is the month of October, thus in 2013 October along with other stakeholders 
and in keeping with this theme certain programmes varying from physical to emotional being of senior 
citizens are planned in all 19 war rooms. 

d) The Disabled 

Many disabled people suffer as a result of both joblessness and prejudices against the disabled. In an 
attempt to promote integrated accessible communities, the Municipality is doing its best to promote 
participation of people with disabilities, and ensuring all public facilities are disable friendly. The 
Municipality encourages people living with disabilities to play a meaningful role in the municipal affairs 
through empowerment projects and capacitating them to find employment. uMsinga Municipality has 
1% physically challenged staff component. 

1.3.6 ORGANISATIONAL DEVELOPMENT OVERVIEW 

The organisational structure that was adopted on 28 May 2014 was reviewed post the local government 
elections in August 2017. The review identified minor macro organisational amendments and 
departments were requested to identify any additional staff capacity that will contribute to improved 
service delivery. The reviewed organisational structure was adopted and implemented during the 2017/18 
financial year. Together with the organisational review the filling of critical vacancies, job descriptions and 
the grading of all posts have been prioritised for urgent intervention and finalisation. The appointment of 
Senior Management was completed in May 2019 and therefore many organisational interventions and 
improvements will only be implemented and achieved in the 2019/20 financial year. 

The view that information communication technology (ICT) should be governed and managed at all levels 
within a given organisational structure is supported by internationally accepted good practice and 
standards. These practices and standards are defined in the King IV, Report on Corporate Governance 
for South Africa 2016, ISO 38500 Standard for the Corporate Governance of ICT, the Corporate 
Governance of ICT Policy Framework and other best practice frameworks. Translated into a Municipal 
operating environment, the corporate governance of ICT places the responsibility of strategic leadership 
on the Council and Management within a Municipality. This is done to ensure that the leadership and 
decision-making processes for the use of ICT in service delivery and operational efficiencies of the 
Municipality’s ICT environment remain transparent. This accountability ensures the alignment of the use 
of ICT with the municipal service delivery requirements as reflected in the IDP. 


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From a technology prospective, desktop and laptop computers were mostly replaced to get almost all 
users on a platform that will be able to support the latest Windows operating system. This is necessary 
to be able to deploy the latest version of Microsoft Office to comply with requirements from system 
developers as well as the ability to be compatible with other users. Replacements are being performed 
budget permitting and the oldest technology first is set as a priority. This is an ongoing project. As new 
posts are being filled, users are being supplied with equipment including computers and telephones. This 
is difficult to budget for as no real figures are available in advance. ICT have however managed to assist 
everyone even on very short notice in some cases. In the year 2018/2019 the Municipality rolled out 
laptops and tablets to all 36 Councillors. It has been working tirelessly to get everyone to use the 
paperless method. With the new A drive created for the ease of access for agendas and other Council 
supporting documentations. 

The Legal Services Section has been recently added to the organisational structure under the Municipal 
Managers unit however it has not been fully functional in 2018/2019 however it is needed to protect the 
Municipality against legal action, making use of both internal and external legal support services. Legal 
action is also taken by the Municipality, where necessary, to enforce Municipal legislation and contractual 
obligations. In 2018/2019 the Municipality continued to rely on external legal services due mainly 
because the internal legal services are still new and lacks capacity. It is envisaged that in the near future 
the Municipal legal section will be fully equipped to handle day to day legal advices and guidance. 

1.3.7 AUDITOR-GENERAL REPORT 

a) 2018/2019: Unqualified opinion with matters 

b) 2017/2018: Unqualified opinion with matters 

c) 2016/2017: Qualified audit opinion 

d) 2015/2016: Unqualified audit opinion with matters 

e) 2014/2015: Unqualified audit opinion with no other matters (“clean” audit); 

The unqualified and qualified audit opinions have to do with the Annual Financial Statements, Performance and 
compliance matters. 


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1.3.8 STATUTORY ANNUAL REPORT PROCESS 


NO. 

ACTIVITY 

TIMEFRAME 

1 

Consideration of next financial year’s budget and IDP process plan. Except for the 

legislative content, the process plan should confirm in-year reporting formats to ensure 

that reporting and monitoring feed seamlessly into the Annual Report process at the 

end of the budget/IDP implementation period. 

July 

2 

Implementation and monitoring of approved budget and IDP commence. (In-year 

financial reporting.) 

3 

Finalise 4 th Quarter Performance Report for previous financial year. 

4 

Submit Draft Annual Performance Report to Internal Audit and Audit Committee. 

5 

Audit/Performance Committee considers Draft Annual Performance Report of 

Municipality. 

August 

6 

Municipality submits Annual Financial Statements and Annual Performance Report 

including Draft Annual Report to Auditor-General. 

7 

Annual Performance Report as submitted to Auditor-General to be provided as input to 

the IDP analysis phase. 

8 

Auditor-General assesses Annual Financial Statements and Annual Performance 

Report data, including Draft Annual Report. 

September 



9 

Municipality receives and addresses the Auditor-General’s Request for Information and 

Communication of Findings. 

November 

10 

Mayor tables Draft Annual Report and audited Annual Financial Statements and 

Annual Performance Report to Council complete with the Auditor-General’s Report. 

January 

11 

Draft Annual Report is made public and representation is invited. 

February 


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NO. 

ACTIVITY 

TIMEFRAME 

12 

Oversight Committee (MPAC) assesses Draft Annual Report and issues an Oversight 

Report. 

March 

13 

Council considers Oversight Report. 


14 

Oversight Report is made public. 


15 

Oversight Report is submitted to relevant provincial departments. 


16 

Commencement of draft budget/IDP finalisation for next financial year. Annual Report 

and Oversight Report to be used as input. 



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Chapter 1: Executive Mayor's Foreword and Executive 
Summary 



Chapter 3: Service Delivery Performance (Performance 
Report) 


Chapter 4: Organisational Development Performance 


Chapter 5: Financial Performance 


Chapter 6: Auditor-General Audit Findings 


Appendices 


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CHAPTER TWO: GOVERNANCE 

To ensure accountability and governance arrangements are in place, Section 121(2) C) of the MFMA 
supports the requirements of Section 18(1 )(d) of the MSA: information on matters of governance should 
be communicated to communities. This should, according to Sections 65(1 )(a) of the MFMA and 46 of 
the MSA be undertaken through the compilation and publication of the Annual Report. The purpose of 
such an annual report is to promote accountability to communities for decisions taken by the Council and 
matters relating to administrative structures, throughout a financial year. Listed below are major 
characteristics should be applied within the political and administrative structures of a Municipality / 
municipal entity to ensure good governance: 

S Participation: Participation could be either direct or through legitimate intermediate institution or 
representatives. 

S Rule of law: Good governance requires legal frameworks that are enforced impartially. 

S Transparency: Transparency means that stakeholders are provided with information on why 
decisions were made that directly affect them. 

S Responsiveness: Good governance requires that institutions and processes try to serve all 
stakeholders with fairly. 

2.1 INTRODUCTION TO GOVERNANCE 

In the quest to realise UMsinga Municipality’s vision it is important that the Municipality is governed in 
a way that promotes good governance. The Municipality strives to achieve corruption free and 
accelerating local economic development with the available resources in such a way that service delivery 
takes place in an efficient, economic and effective manner. 

2.2 COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE 
2.2.1 POLITICAL AND ADMINISTRATIVE GOVERNANCE 

In compliance with Section 151(3) of the Constitution of the Republic of South Africa, 1996 (Act 108 of 

1996); Section 53 of the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000); and the Local 
Government: Municipal Structures Act, 1998 (Act 117 of 1998), uMsinga ’s Municipal Council governs 
the local government affairs of the local community on its own initiative. The roles and areas of 
responsibility of each political structure and each political office-bearer of the Municipality and of the 
Municipal Manager are defined and adhered to accordingly. 


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2.2.2 POLITICAL GOVERNANCE 

2.2.2.1 Council 

The Council’s primary role is to govern the Municipality in a democratic and accountable manner, to 
perform legislative and executive functions and generally to fulfil its roles and responsibilities as set out 
in the Constitution of the Republic of South Africa, 1996 (Act 108 of 1996). It focuses on legislation, 
decision-making, oversight and participatory roles and has delegated executive functions to the Mayor. 
uMsinga Municipal Council consists of 18 ward Councillors and 36 proportionally elected Councillors. 
Political parties are represented through elected Councillors from the ANC (12), IFP (24). 

2 . 2 . 2.2 The Mayor 

The Mayor, Cllr B.P. Ngcobo, assisted by the Deputy Mayor and are all members of the IFP. The Speaker 
heads the political executive arm of the Municipality. The Mayor is at the centre of the system of 
governance, since executive powers are vested in her to manage the day-to-day affairs. This means that 
she has an overarching strategic and political responsibility. The key element of the executive model is 
that executive power is vested in the Mayor, delegated by the Council, as well as the powers assigned 
by legislation. Although she is accountable for the strategic direction and performance of the Municipality, 
the Mayor operates in conjunction with the Deputy Mayor and the Executive Committee. 

2.2.2.3 Portfolio Committees 

Five (5) Section 80 committees are established, namely: Administration Services; Development Planning; 
Technical Services; Financial Services; and Community Services to advise the Mayor on policy matters 
and any other matter to be considered by the Mayor. They are assigned to focus on specific functional 
areas of the Municipality and can only make decisions on specific functional issues if delegations have 
been granted to them. The members are appointed by Council. The chairpersons appointed by the Mayor 
are Councillors and form part of the Executive Committee. 

2.2.2A MPAC 

Section 79 committees are permanent committees appointed to advise the municipal Council. Council 
established the Municipal Public Accounts Committee (MPAC) to perform an oversight function on behalf 
of Council over the executive functionaries of the Council. The MPAC inter alia serves as an oversight 
committee to make recommendations to the Council when it adopts the Oversight Report on the Annual 
Report in terms of Section 129 of the Local Government: Municipal Finance Management Act, 2003 (Act 


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56 of 2003) (MFMA). The MPAC is chaired by the Councillor from the IFP and the other members consists 
of five Councillors from the IFP and two ANC Councillors. The committee met on 3(three) occasions 
during the year under review on the 27 November 2018,10 July 2018, 30 August 2018 (Special meeting) 

2.2.2.5 Audit Committee 

In compliance with Section 166(2) of the MFMA, Council has an Audit Committee which is an independent 
body advising the Municipal Council, the political office-bearers, the accounting officer and the 
management staff of the Municipality, on matters relating to: 

• Internal control; 

• Risk management; 

• Performance management; and 

• Governance. 

The Audit Committee Terms of Reference is reviewed by Council annually to ensure compliance with 
legislation and governance best practices. The Audit Committee met on five occasions and detail on their 
recommendations to Council can be found in Appendix G of the Annual Report. 

2.2.2.6 FARMCO 

The FARMCO was established by Council in 2017 /2018 to assist the Accounting Officer (Municipal Manager) to 
fulfil his fraud and risk management responsibilities in accordance with prescribed legislation and corporate 
governance principles. This is achieved by reviewing the effectiveness of the Municipality’s fraud and risk 
management systems, practices and procedures and providing recommendations for improvement. The committee 
is regulated by the Fraud and Risk Management Charter which stipulates that the FARMCO shall meet at least 
four times per annum in terms of a schedule of agreed meeting dates to be determined at the beginning of each 
financial year. The FARMCO can convene further meetings to discuss urgent matters at the discretion of the 
FARMCO Chairperson, Mr Madonsela who also forms part of the municipal independent Audit Committee also 
appointed within 2017/2018. 


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POLITICAL STRUCTURE 
THE HONOURABLE MAYOR 

Mayor 

ClIrBP NGCOBO 

Following Government elections on 3 August 2016, 

The Mayor represents the public and is the chief political principal of the Municipality. In terms of legislation the 
Mayor has the following functions: 

• Identify the needs of the Municipality; 

• Review and evaluate those need in order of priority; 

• Recommend to the municipal Council strategies, programmes and services to address priority needs 
through the Integrated Development Plan and the Operating and Capital Budgets, taking into account 
any applicable national and provincial development plans; and 

• Recommend or determine the best way, including partnership and other approaches, to deliver those 
strategies, programmes and services to the benefit of the community. 



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Deputy Mayor 

Cllr SG MASIMULA 

Following government elections on 3 August 2016, 

FUNCTION: The Deputy Mayor of a Municipality exercises the power and performs the duties of the Mayor if the 
Mayor is absent or not available or if the office of the Mayor is vacant. 



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Speaker 

ClIrTL KUNENE 

Following government elections on 3 August 2016, 

The Speaker of the municipal Council: 

• Presides at meetings of the Council; 

• Performs the duties and exercises the powers delegated to the Speaker in terms of Section 59 of the 
Local Government: Municipal Systems Act, 2000 (Act 32 of 2000); 

• Must ensure that the Council meets at least quarterly; 

• Must maintain order during meetings; 

• Must ensure compliance in Council and Council committees with the Code of Conduct set out in Schedule 
1 of the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000); and must ensure that Council 
meetings are conducted in accordance with the rules and orders of the Council. 



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a) POLITICAL STRUCTURE 


EXCO (Executive Committee) 

The Executive Committee members all belong to portfolio committees and have specific functions. 
The Mayor may delegate specific responsibilities to each member of the Executive Committee. Any 
powers and duties delegated to the Mayor by the Municipal Council must be exercised and 
performed by the Deputy Mayor together with the other members of the Executive Committee. The 
EXCO is made of 8 Councillors including the Mayor, deputy Mayor and the Speaker. The following 
Councillors served as portfolio holders in the financial year 2018/2019: 

COUNCILLOR AND PORTFOLIO 

COUNCILLOR AND PORTFOLIO 

CLLR BP NGCOBO (Mayor) 

Executive Committee Chairperson 

Portfolio: chairperson of Finance committee 

CLLR SHEZI 

Portfolio: Chairperson Planning and Economic 
Development (established in 2017/2018 final 
quarter) 

CLLR B DUMAKUDE: 

Portfolio: Chairperson Technical Services 

CLLR: S.G. MASIMULA: DEPUTY MAYOR 

Portfolio: Chairperson Corporate Services 

CLLR M SOKHELA 

Portfolio: Chairperson Community Services 

CLLR TM KUNENE: THE SPEAKER 
Chairperson for Rapid Response 

CLLR L.D NGUBANE 

Exco Member 

CLLR N.C. SIKHOSANA 

Exco Member 

MPAC 

CLLR DM NDLOVU 

MPAC Chairperson 

MEMBERS: 

CLLR P. DLADLA, CLLR T.M. MABASO, CLLR 

M.M.S. MYEZA, CLLR B.P. MADONDO, CLLR 

B. MTHETHWA, CLLR N.C. SIKHOSANA 


b) COUNCILLORS 

Council is the structure in which the executive and legislative authorities of a Municipality are vested. The roles of 
Council amongst others are the approval of policies, budgets, by-laws etc. There are 36 Councillors which include 
the Mayor, Deputy Mayor and the Speaker. There are 8 members of the Executive Committee and 29 ordinary 
Councillors. Council is made of 13 female Councillors which is a sign that transformation is occurring which is 
admirable in a patriarchal society. 


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c) Political Decision-Taking 

Section 160(3) of the Constitution of the Republic of South Africa, 1996 (Act 108 of 1996) prescribes the manner 
in which Council takes decisions. A quorum of Councillors must be present to take any decision and the majority 
of the votes cast results in a legal decision. The exception to this rule is that when any of the following issues are 
determined, it is determined by a decision taken with a supporting vote of a majority of all its members: 

(1) The passing of by-laws; 

(2) The approval of budgets; 

(3) The imposition of rates and other taxes, levies and duties 

2.2.2 ADMINISTRATIVE GOVERNANCE 

The Municipal Manager is the Accounting Officer of the Municipality and also the head of the administration. His 
primary function is to serve as chief custodian of service delivery and the implementation of political priorities. He 
is assisted by his Senior Management Team (SMT), which comprises of the HODs (Head of Departments) of the 
five departments established in the new organogram. There are also four DDs (Deputy Directors) who are 
managers reporting directly to the HODs as indicated in the chart below. The SMT is extended to two managers 
who report directly to the Municipal Manager that is the Internal Auditor and the IDP Manager. The SMT meet 
regularly on Monday mornings to discuss strategic interventions to improve service delivery and new initiatives 
based on feedback from political leadership, operational departments and the local community. 


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TOP STRUCTURE 

POSITION 

FUNCTION 


• Provides an independent appraisal of the adequacy and 
effectiveness of the systems of internal control, risk 
management and governance processes. 

• Evaluates and contributes to the improvement of 
governance management processes. 

• Manages financial services in order to ensure financial 
viability, compliance and reporting. 

• Provides corporate services to the institution to ensure 
efficient support of organisational processes. 

• Provides and manages planning, economic development 
and environmental management services. 

• Renders integrated community services to enhance 
community development in general and promotes a 
clean and safe environment. 

• Maximises infrastructure development and delivers a 
service to all communities of UMsinga Municipality. 


• Provides legal and administrative support services to the 
institution to facilitate proficient administrative practices 
and procedures. 

• Renders human resource management and support 
services to the Municipality that will sustain the optimum 
utilisation of the Municipality’s human capital. 

• Provides effective and efficient information and 
communication technology services. 

• Provides comprehensive communication and 
intergovernmental relations services 

• Coordinates and provides functional and administrative 
support to the political office-bearers. 

• Provides office management services to the Mayor. 

• Renders property and facilities management services. 


DIRECTOR CORPORATE SERVICES 
MR. M.V. NTANZI 
APRIL 2017. 



MUNICIPAL MANAGER 
MRS.L. SOKHELA 
(APPOINTED ON 13 AUGUST 2018) 



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FINANCE SERVICES 
MRT.M. NENE 

APPOINTED AS AT 16 JULY 2018 


PLANNING AND DEVELOPMENT 
MRS B.T. HLUBI 
AS AT 06 MAY 2019 




Manages and controls the implementation of budget 
policies, systems and procedures and financial statement 
processes to ensure legislative compliance and sound 
financial management practices. 

Implements and maintains revenue and credit control 
policies and procedures to ensure sound revenue 
management practices and compliance. 

Ensures the recording, authorisation and proper 
execution of expenditure systems, procedures and 
transactions. 

Manages supply chain management services to ensure 
proper systems, procedures and control for demand, 
acquisition, logistics, assets and disposal management. 


Manages the rendering of spatial and land use planning, 
surveying, valuations and building control services. 

Plans, develops and implements a coherent and 
Integrated Framework for Local Economic Development 
and Tourism. 

Ensures the implementation of environmental 
management plans, policies and procedures and ensures 
compliance in accordance with applicable legislation. 
Renders management and line function administrative 
support services. 

Provides for the development of human settlements 
administration and support services to address the 
housing needs in the area. 


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DIRECTOR TECHNICAL SERVICES 
MRS. MNGUNI 
AS AT APRIL 2019 


COMMUNITY SERVICES 
M.S.XULU APPOINTED 
AS AT AUGUST 2018 




Manages Civil Engineering Services including (road 
& storm water). Manages Electrical Services. 
Manages including waste collection, disposal 
facilities, waste minimisation, awareness and 
education, waste management, street sweeping, 
community projects, area cleaning and Waste to 
Energy. 

Manages project and building projects / 
programmes. 


Manages the provisioning and maintenance of sport 
facilities 

Manages the rendering of protection services to 
ensure the safety of the community. 

Provides and manages the rendering of community 
development, library and information services. 
Renders management and line function 
administrative support services. 




TABLE 20: TOP ADMINISTRATIVE STRUCTURE 


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2.3 COOPERATIVE GOVERNANCE AND INTERGOVERNMENTAL RELATIONS 

UMsinga Local Municipality participates in a range of intergovernmental activities, both formally and 
informally. Examples of such interaction and cooperation are: - 

• The cooperation of all three spheres of government in the delivery of services for the poor; 

• Events and Imbizo’s organised to bring information and services to the community. The 
functioning of Municipal 

• Thusong Centres is also an example of bringing joint services to the community; 

• Joint integrated development planning during which various provincial departments and 
Umzinyathi District Municipality contribute towards the IDP planning processes; 

• Various meetings are attended where interaction takes place between the various spheres of 
government; 

• UMsinga Local Municipality attends the SALGA workgroup meetings where all the 
municipalities in the KwaZulu Natal gather to discuss matters of mutual interest in the various 
fields for which workgroups have been established; 

• Provincial Coordinating Forum: the structure is in two folds, the technical and administrative level. 

• The technical structure does not include political heads but only technical heads. The Municipal 
Manager and Mayor respectively take part in the Municipal Managers’ Forum, both district’s and 
provincial, as well as the MM's Forum where the Premier of KwaZulu Natal meets the mayors of 
the municipalities in the KZN and their municipal managers to discuss various matters of mutual 
interest; and 

• MUNIMEC: This is a technical structure where municipal managers converge to discuss various 
matters. This structure is chaired by the MEC for COGTA. the structure meets on a quarterly 
basis and it is divided in two as well with the technical and the political layers. 

• All IGR structures are functional at the district level including the Mayor’s forum which bring all 

• Mayors in the district together to discuss issues pertaining to the district’s development. The 
Speaker’s forum, MM's forum, and other technical structures including the DTAC which is a 
technical committee converging quarterly on IDP and PMS matters including reporting back and 
monitoring the back to basics programme. The meeting location is rotated amongst the local 
municipal areas and is always attended by a delegate from DCOGTA municipal performance 
unit. 


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• The Joint Municipal Planning Tribunal (JMPT) initiative of which UMsinga Municipality forms 
part of is made of a number of expertise from various municipalities ranging from the Building 
Inspectors, Town Planners, engineers etc. The tribunal is tasked with the task of assessing all 
development planning applications in line with SPLUMA. 

2.3.1 INTERGOVERNMENTAL RELATIONS 

2.3.1.1 NATIONAL INTERGOVERNMENTAL STRUCTURES 

uMsinga Municipality participates in national and provincial forums where issues are discussed that 
involve all local municipalities. These forums are of a technical and professional nature. Experiences and 
best practices are shared and information is gathered; an example of these would be SALGA, PCF and 
the IMFO. 

2.3.1.2 PROVINCIAL INTERGOVERNMENTAL STRUCTURES 

uMsinga Municipality participates in the Premier’s Intergovernmental Forum as well as the Provincial 
Speakers’ Forum. The municipal managers also have a provincial and national forum. In all these forums, 
issues pertaining to service delivery and matters of common interest are discussed. Information and best 
practices are shared and interaction with the KwaZulu Natal Government and other municipalities is 
valuable to ensure better coordination and cooperation. Key staff members also participate in 
professional institutes that govern the interests of various fields of work. These structures provide 
important support and guidance to staff in maintaining and enhancement of professional work standards. 

2.3.1.3 Relationships with Municipal Entities 

No municipal entities have been established within the uMsinga Municipality area. 

2.3.1.4 District Intergovernmental Structures 

As with provincial structures, the Municipality participated in the district forums of mayors, speakers and 
municipal managers, human resources, planning, finance and various infrastructure forums dealing with 
service delivery. Engagement, joint projects and information sharing take place on a regular basis. 


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2.4 PUBLIC ACCOUNTABILITY AND PARTICIPATION 

2.4.1 OVERVIEW OF PUBLIC ACCOUNTABILITY AND PARTICIPATION 

In terms of Section 6 of the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000) the administration 
of a Municipality must: 

a) Be responsive to the needs of the local community; 

b) Facilitate a culture of public service and accountability amongst staff; 

c) Take measures to prevent corruption; 

d) Establish clear relationships, and facilitate cooperation and communication between itself and the local 
community; 

e) Give members of the local community full and accurate information about the level and standard of 
municipal services they are entitled to receive; and 

f) Inform the local community how the Municipality is managed, of the costs involved and the persons in 
charge. 

To comply with the above, UMsinga Municipality has established the legislatively required structures such as 
Section 80 Portfolio Committees advising the Mayor, Council committees such as the Municipal Public Accounts 
Committee (MPAC), Section 62 Appeals Committee, Special (Disciplinary) Committee, as well as a Fraud and Risk 
Management Committee. An Audit Committee comprising of independent external members also advises Council. 
The Audit Committee also serve as the Municipality’s Performance Audit Committee and meets quarterly. A 
quarterly report reflecting the Audit Committee’s recommendations relating to the areas of financial management 
and control, performance management, internal control, risk management and governance matters is tabled to 
Council. These structures assist the Municipality to discharge the necessary public accountability responsibilities. 
These structures represent a segmentation of duties amongst staff and public representatives to ensure 
accountability, transparency and good governance. 

Council approved a ward committee system for each of the 18 wards after the elections in 2016 August 03 and the 
system is fully operational. The chairperson of the ward committee is the elected Ward Councillor and other 
members of the ward committee are elected by the residents of the ward. It is expected of the ward committees to 
hold regular meetings - at least once every month - and the minutes are submitted to the Speaker’s Office. The 
functionality of the ward committees is monitored and reported on to Council on a quarterly basis as its reported 
on as sit forms part of the performance plan for the HOD for Corporate services. During the period under review 
18 ward committees were fully functional as elected after the Local Government Elections held on 3 August 2016. 
The establishment of ward committees took place in accordance with the Rules Regulating the Election and 


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Establishment of Ward Committees which was adopted by Council. The Ward Committees received Induction 
Training during the beginning of 2017 with the support of the Provincial Department of Local Government. 

Communication with the community through other media has continuously improved by focussing on effective and 
relevant information sharing. The website has been well maintained and features all the documentation required 
in terms of legislation as well as public policies, documents and by-laws informing residents about the affairs of the 
Municipality. It provides for interactive functions on the website which entail additional and user-friendly methods 
to the public to communicate with the Municipality. These features will be continuously expanded in years to come. 

Media and communication are receiving constant attention and the Municipality respond to media enquiries 
continuously. The Municipality has commissioned a Complaint Management System situated at the municipal 
Registry section which intends to upgrade customer care within the Municipality. 

When the Annual Report is completed, it is made available at the municipal library, the mobile library and on line 
in the municipal website. The MPAC plays their oversight role by scrutinising the report at large and also invites 
public comment on it. 

2.4.2 PUBLIC MEETINGS 

2.4.2.1 COMMUNICATION, PARTICIPATION AND FORUMS 

In terms of Chapter 4 of the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000), the 
Municipality is required to establish appropriate mechanisms, processes and procedures to enable the 
local community to participate in the affairs of the Municipality. During the year under review, the 
Municipality used the following mechanisms to comply with this legislative requirement: 

■ Ward committee meetings (discussed in more detail below); 

■ Public notices in local and regional newspapers; 

■ Press releases as and when required; 

■ Receipt and consideration of petitions and objections; 

■ Public IDP and consultative meetings; and 

■ Functioning of a municipal website, regularly updated with recent news. 

Public meetings are essential mechanisms for the Municipality to consult with the local community. The 
information gathered during such meetings is a key source that feeds into the IDP review process. The 
information gained at the meetings held during the year under review was useful and assisted the 
Municipality to plan for short-, medium- and long-term projects. One of the main advantages of public 


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meetings is the platform that it provides the Municipality to interact with the community and to convey its 
message directly. 

An IDP Representative Forum was operational during this period and covered the following interest 
groups: 

■ Women, Children, Youth and ECD; 

■ Vulnerable Groups (HIV/AIDS, Disabled, Elderly, Substance Abuse); 

■ Arts, Crafts, Sport and Culture; 

■ Religion; 

■ Business, Agriculture; and 

■ Environmental Management. 

The IDP Representative Forum was consulted throughout the year on the process of the IDP Review and 
it met once in 2018/2019 financial year. Inputs from the various sectors / interest groups were then 
discussed, referred to other spheres where applicable and responded to where possible, in the Integrated 
Development plans. The forum broadened the communication process with UMsinga community and 
focused the interaction on the aspects within the interest groups. During the budget process, meetings 
were held with business, bulk users and other interest groups to obtain their input on the next financial 
year dealings and, after approval of the budget, various groups were engaged to address any queries 
they may have on the implementation of the new IDP and Budget. The budget was also discussed in the 
wards with the communities when inputs were invited on the draft budget. 

2A.2.2 WARD COMMITTEES 

Section 73 of the Local Government: Municipal Structures Act, 1998 (Act 117 of 1998) stipulates: 

(1) If a metro or local Council establishes ward committees it must establish a ward committee for each 
ward in the Municipality. 

(2) A ward committee consists of: 

(a) The Councillor representing that ward in the Council, who must also be the chairperson of 
the committee; and 

(b) Not more than 10 other persons. 


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A ward committee system consisting of ward committees for each of the 18 wards was functional until 
the local government elections held during August 2016. The new term of office lessened the wards by 
one from 19 wards to 18 wards after the 2016 Local government elections. Council approved ward 
Committees in all of the 18 wards during in 2016. The chairperson of the ward committee is the elected 
Ward Councillor and other members of the ward committee were elected by the residents of the ward. It 
is expected of ward committees to meet on a monthly basis and the minutes are submitted to the 
Speaker’s Office. The functionality of the ward committees is monitored and reported to Council by the 
Speaker and his office on a quarterly basis. 

Ward committees form an essential part of the public participation process and these structures are 
particularly useful to ensure a relationship between Councillors and ward residents. It provides the 
opportunity to discuss local matters that concern the residents in that ward. The Municipality annually 
avails funding to each ward in order to undertake specific projects in such wards. Ward committees play 
an important role in this regard as they advise on the projects they would like to be implemented. These 
ward projects further strengthen the relationship between the Municipality and the communities due to 
the direct impact that the ward committees can make on development projects in their wards. The 
purposes of ward committees are: 

• To act as an advisory committee to the Ward Councillor and Council; 

• To ensure two-way communication to and from the community; 

• To identify ward specific needs and to refer same to the administration and Council for attention; 

• To actively partake in the annual IDP ward based public meetings; 

• To assist the Ward Councillor in identifying ward projects and ward capital projects; 

• To identify stakeholders in the wards and to liaise with them regarding matters needing attention; 
and 

• To discuss ward related Council agenda items and to make inputs regarding same if necessary. 
The major issues dealt with by uMsinga Municipality ward committees were the following: 

• Advising the Ward Councillor and Council on ward issues dealt with by Council; 

• Identifying ward specific needs and referring it to the administration and Council for attention; 

• Participation in the annual IDP ward based public meetings; 

• The identification of operating and capital ward projects; 


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• Identifying stakeholders in the wards and liaising with them regarding matters needing attention; 
and 

• Discussions on ward-related Council Agenda items and to make inputs regarding same if 
necessary. 

• Decision making on potential projects and prioritizing 


2A.2.2 IDP PARTICIPATION AND ALIGNMENT 


IDP PARTICIPATION AND ALIGNMENT CRITERIA 

YES 

NO 

Does the Municipality have impact, outcome, input, output indicators? 

V 


Does the IDP have multi-year targets? 

V 


Are the above aligned and can they calculate into a score? 


X 

Does the budget align directly to the KPIs in the strategic plan? 

V 


Do the IDP KPIs align to the Section 56 managers and 54 Managers? 

V 


Do the IDP KPIs lead to functional area KPIs as per the SDBIP? 

V 


Do the IDP KPIs align with the provincial KPIs on the 12 outcomes? 


X 

Were the indicators communicated to the public? 

V 


Were the four quarterly aligned reports submitted within stipulated timeframes? 

V 



TABLE 21: IDP PARTICIPATION AND ALIGNMENT CRITERIA 


2.5 CORPORATE GOVERNANCE 

2.5.1 OVERVIEW OF CORPORATE GOVERNANCE 

Governance in uMsinga Municipality encompasses line functions pertaining to political and 
administrative governance, audit, risk management, organisational and individual performance 
management, public participation and IDP, intergovernmental relations, public communication, human 
resource management, organisational development and legal services. The governance function is 
supported by an independent Audit Committee, comprising of five external specialists having the 
necessary skills to provide effective oversight of the Municipality’s systems of internal control, risk 
management and governance processes. The Audit Committee is supported in its role by the Internal 


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Audit function which performs audits in terms of an approved audit plan, audit charter and reports to the 
Audit Committee on a quarterly basis. The Municipal Public Accounts Committee (MPAC) comprises of 
independent Councillors. In order to promote independence and objectivity, the MPAC is chaired by a 
Councillor from the ruling party in Council. 

2.5.2 RISK MANAGEMENT 

Section 62(i)(c) of the MFMA requires a Municipality to have and maintain an effective, efficient and 
transparent system of risk management. There is a danger that risks which fall outside traditional 
functions may go unmanaged and have serious consequences on the institutional objectives. The need 
for broad-based risk management is thus critical as it will also ensure that risks which were not previously 
given adequate attention are now properly managed. Risk management processes that are integrated in 
the institution’s existing structures are likely to be more effective in producing the desired service delivery 
and other objectives. 

The Risk Management is falls within the internal audit unit in the Municipality and is responsible for the 
Risk Management function at UMsinga Municipality through facilitation and advising on fraud- and 
risk management issues. This entails the development of policies, strategies, plans and processes. 
UMsinga Municipality established a Fraud- and Risk Management Committee (FARMCO), which meets 
on a quarterly basis and assists in the development and revision of all policies, strategies, plans and 
processes. In the financial year under review, the Risk Management Policy, Strategy as well as Plan were 
developed. The Risk Register, linked to key performance areas (strategic objective) and key focus areas, 
was established, monitored and reviewed with all the directorates through a facilitation process. The ten 
top strategic risks identified were: 

1. Inability to provide and maintain adequate municipal infrastructure 

2. Ineffective control over municipal assets 

3. Inability to attract and retain experienced and competent employees 

4. Inability to address findings and concerns raised by AG, IA, AC, MPAC, COGTA and Treasury 

5. ineffective municipal oversight structures (Council, EXCO, Audit Committee. 

6. Non-compliance with legislations applicable to local government 

7. Uncontrolled urbanization 

8. Inability to respond to disaster related incidents. 

9. Inability to effectively implement MSCOA 


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10. Inability to monitor performance management system 

2.5.3 INTERNAL AUDIT 

Internal Audit is an independent function reporting administratively to the Accounting Officer and 
functionally to the Audit Committee. Internal Audit performs audits in terms of a three-year strategic and 
one-year operational plan which is approved by the Audit Committee at the commencement of each 
financial year. The priorities in the Internal Audit Plan can be categorised in terms of audits focusing on 
the systems of internal control, risk management and governance. The prioritisation of audits in these 
three categories is based primarily on the Municipality’s risk profile as well as legislative requirements. 
Internal Audit reports to the Audit Committee on a quarterly basis regarding progress with the 
implementation of the approved plan as well as the outcome of audits conducted in terms of the approved 
plan. Internal Audit also performs follow-up audits to assess the implementation of agreed management 
action plans in response to reported internal audit findings. Internal Audit executes its duties in terms of 
the International Standards for the Professional Practice of Internal Auditing (Standards) issued by the 
Institute of Internal Auditors. 

In the year under review the outsourced internal audit’s contract came to an end and for the first time the 
Municipality started utilising the internal capacity to perform the internal auditing purposes. The internal 
audit capacity is very limited and with the outsourced capacity gone, the Municipality realized that 
capacity needs to be strengthened going forward. 

2.5.4 ANTI-CORRUPTION AND FRAUD 

The Fraud- and Risk Management Committee (FARMCO) meets on a quarterly basis and assists with 
the development and revision of all policies, strategies, plans and processes relating to fraud risk 
management. In the financial year under review, the current Fraud Prevention Policy and Strategy were 
incorporated in the Risk Management Policy. FARMCO review the effectiveness of prevention initiatives, 
detection techniques as well as progress made in any forensic investigations, and thereby also function 
as an oversight body. The Municipality does not have a fraud hotline as yet. 


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2.5.5 SUPPLY CHAIN MANAGEMENT 

2.5.5.1 OVERVIEW OF SUPPLY CHAIN MANAGEMENT 

2.5.5.1.1 Demand Management 

The objective of demand management is to assist the Municipality with the planning for the procurement 
of goods, works or services in a proactive manner and to move away from merely reacting to purchasing 
requests. Certain aspects of demand management were implemented, i.e. the Capital Projects 
Procurement Plan that encapsulates all capital projects. This planning document assists directorates to 
timeously plan for procurement of capital goods / projects where directorates are required to commit 
procurement due dates for their respective capital projects expenditure. The procurement plan was 
closely monitored and reported on to the Accounting Officer on quarterly basis and assisted the 
Accounting Officer with an oversight regarding the spending of capital funds during the financial year. 

2.5.5.1.2 Acquisition Management 

The Supply Chain Management (SCM) Unit processed a total order for the 2018/2019 financial year the 
value for which is in the AFS attached. 

2.5.5.1.3 Policy Amendments 

The SCM Policy was reviewed during the 2018/2019 financial year. Certain amendments to the SCM Policy were 
tabled before Council in order to improve operational efficiency. The Municipality has to forward the current SCM 
Policy to the KZN Treasury on an annual basis for scrutiny and compliance verifications against the SCM Policy 
model that was issued by National Treasury. The purpose of this exercise is to determine whether the Municipal 
SCM Policy deviates from the stipulations of the SCM Regulations. UMsinga Municipality’s SCM Policy complies 
with the regulatory framework. Invitation and evaluation of bids based on a stipulated minimum threshold for local 
production and content Regulation 9(1) of the Preferential Procurement Regulations, 2011 and Regulation 8(1) of 
the Preferential Procurement Regulations, 2017 makes provision for the Department of Trade and Industry, in 
consultation with the National Treasury to designate sectors for which local production and content is of critical 
importance when bids are awarded. 

2.5.6 BY-LAWS/POLICIES 

Section 11 (3) of the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000) provides Municipal 
Councils with the legislative authority to pass and implement by-laws for the betterment of the community 
within the terms of the legislation. In terms of Section 160(3) of the Constitution of the Republic of South 
Africa, 1996 (Act 108 of 1996): 

■ The by-laws/policies serve before the various structures of the Council; 


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■ The by-laws/policies were advertised in the local media for objections or comment; 

The by-laws were open for inspection at all Municipal offices and libraries; and the by-laws were published 
on the local newspaper. Bylaws/Policies were adopted by Council on the 29thMay 2019. -The following 
by-laws were adopted in the 2018/2019 financial year: 

ADMINISTARTIVE POLICIES 

• Bursary Policy 

• Employee Wellness Policy 

• HIV/AIDS Policy 

• Leave Policy 

• Medical Aid 

• General Stipulations 

• Discipline 

• Employment Equity Plan 

• Payment of Overtime 

• Smoking in the workplace 

• Probationary period policy 

• Recruitment, selection, appointment, promotion and transfer of personnel 

• Scarce skills and retention 

• Sexual harassment 

• Skills development Policy 

• Termination of Service 

• Attendance & Punctuality 

• Incapacity poor work performance 

• Intoxication and substance abuse 

• Incapacity ill health 

• Retention Policy 

• Employee wellness 

• Occupational health and safety 

• Actin 


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MUNICIPAL WEBSITE: CONTENT AND CURRENCY OF MATERIAL 

DOCUMENTS PUBLISHED ON THE MUNICIPALITY’S WEBSITE. 

Yes/No 

Publishing Date 

ANNUAL BUDGETS, IDP AND ALL BUDGET-RELATED DOCUMENTS 

Yes 


ALL BUDGET-RELATED POLICIES 

Yes 


THE PREVIOUS ANNUAL REPORT 2015/16, 2016/17/2017/2018 

Yes 


THE ANNUAL REPORT 2018/2019 TO BE PUBLISHED 

Yes 

January 2020 

ALL CURRENT PERFORMANCE AGREEMENTS (2017/18 2018/2019) (2019/2020) AND 
RESULTING SCORECARDS REQUIRED IN TERMS OF SECTION 57(1)(B) OF THE LOCAL 
GOVERNMENT: MUNICIPAL SYSTEMS ACT, 2000 (ACT 32 OF 2000) 

Yes 

August 2018 

2019/20 August 2019 

DOCUMENTS PUBLISHED ON THE MUNICIPALITY’S WEBSITE. 

Yes/No 

Publishing Date 

ALL SERVICE DELIVERY AGREEMENTS 2018/2019) 

Yes 


ALL LONG-TERM BORROWING CONTRACTS (2018/2019) 

No 

None 

ALL SUPPLY CHAIN MANAGEMENT CONTRACTS ABOVE A PRESCRIBED VALUE 
(ABOVE R 200,000) FOR 2018/2019 

Yes 


ALL INFORMATION STATEMENTS CONTAINING A LIST OF ASSETS OVER A 

PRESCRIBED VALUE THAT HAVE BEEN DISPOSED OF IN TERMS OF THE 

MFMA SECTION 14(2) OR (4) DURING 2018/2019 

No 


CONTRACTS AGREED IN 2018/2019 TO WHICH THE MFMA SUBSECTION 

(1) OF SECTION 33 APPLIES, SUBJECT TO SUBSECTION (3) OF THAT 

SECTION 

No 


PUBLIC-PRIVATE PARTNERSHIP AGREEMENTS REFERRED TO IN THE MFMA 

SECTION 120 MADE IN 2018/19 

No 


ALL QUARTERLY REPORTS TABLED BEFORE COUNCIL IN TERMS OF THE MFMA 

SECTION 52(D) DURING 2018/2019 

No 


ALL MUNICIPAL RESOLUTIONS, MUNICIPAL COUNCIL MINUTES 

No 



TABLE 23: MUNICIPAL WEBSITE CONTENT 

2.5.7 PUBLIC SATISFACTION WITH MUNICIPAL SERVICES 


The centralised complaints management system procured to improve customer care is fully operational. Additional 
access options have been introduced in order to ensure that all residents have easy access to the system. In 
addition, the system has been expanded to all directorates of the Municipality. During the reporting period there 
were no service requests registered. 


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Chapter 1: Executive Mayor’s Foreword and Executive 
Summary 


Chapter 2: Governance 


Chapter 3: Service Delivery P e rformance (Performance 
Report) 


Chapter 4: Organisational Development Performance 


Chapter 5: Financial Performance 


Chapter 6: Auditor -General Audit Findings 


Appendices 


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CHAPTER 3: THE SERVICE DELIVERY AND BUDGET IMPLEMENTATION PLAN - 
SDBIP 

The SDBIP is a plan that converts the IDP and Budget into measurable criteria on how, where and when 
the strategies, objectives and normal business process of the Municipality are implemented. It also 
allocates responsibility to Departments to deliver the services in terms of the IDP and Budget as adopted 
29th May 2019. The MFMA Circular No.13 prescribes that: the IDP and budget must be aligned; The 
budget must address the strategic priorities; The SDBIP should indicate what the Municipality is going to 
do during the next the 12 months; and The SDBIP should form the basis for measuring the performance 
against goals set during the budget /IDP processes. The SDBIP was prepared as described in the 
paragraphs below and approved by Her Worship the Mayor on 29th May 2019. The overall assessment 
of actual performance against targets set for the Key Performance Indicators as documented in the 
SDBIP is illustrated in terms of the following assessment methodology: 

3.1 THE MUNICIPAL SCORECARD 

The Departmental Scorecards (detailed SDBIP) capture the performance of each Department. Unlike the 
Municipal organizational Scorecard, which reflects on the strategic performance of the Municipality, the 
Departmental SDBIP 2018/2019 provides a comprehensive picture of the performance per Department/ 
unit branch. It was compiled by the Heads of Departments and consists of objectives, indicators and 
targets derived from the approved Top Layer SDBIP. All departmental plans together form the 
organizational scorecard (SDBIP). 

The necessary components include: 

S Monthly projections of revenue to be collected for each source; Expected revenue to be collected 
NOT billed; 

S Monthly projections of expenditure (operating and capital) and revenue for each vote; Quarterly 
projections of service delivery targets and performance indicators for each vote; 

S Non-financial measurable performance objectives in the form of targets and indicators; and 
S Detailed capital project plan broken down by ward over three years. 

The MFMA Circular No.13 prescribes that: 

• The IDP and budget must be aligned; 


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• The budget must address the strategic priorities; 

• The SDBIP should indicate what the Municipality is going to do during in the next 12 months; and 

• The SDBIP should form the basis for measuring the performance against goals set during the 
budget/IDP processes. 

The SDBIP was prepared as described in the paragraphs below and approved by Her Worship the Mayor 
on the 29th May 2018. The overall assessment of actual performance against targets set for the Key 
Performance Indicators as documented in the SDBIP is illustrated in terms of the following assessment 
methodology: 


Colour 

Category 

Explanation 


No 

TiT 

KPI Not Yet 
Measured 

KPI's with no targets or actual results for the 
selected period 

0 


KPI Not Met 

Actual vs. target less than 75% 

0 


KPI Almost Met 

Actual vs. target between 75% and 100% 

11 


KPI Met 

Actual vs. target 100% achieved 

61 


KPI Extremely 
Well Met 

Actual vs. target more than 100% achieved 

5 


Total 

KPIs 


77 



TABLE 24: PERFORMANCE ASSESSMENT CRITERIA 


PLANNED TARGETS VS ACTUAL RESULTS FOR THE 2018/2019-FINANCIAL YEAR 


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TABLE 25: PERFORMANCE ASSESSMENT: KPIS MET VS NOT MET 








2017/2018 

2018/2019 

not indicated 



0 


KPI Not measured 

0 

0 


100% KPI met 

46 

61 


KPI Almost Met 75%-100% 

17 

11 


KPI Not Met 75% and less 

0 

0 


KPI Extremely Well Met 

0 

5 

TOTAL KPI 


63 

77 

Total % 


73% 

85% 






3.2 PERFORMANCE AGAINST THE NATIONAL KEY PERFORMANCE INDICATORS 

The following tables indicate the Municipality’s performance in terms of the National Key Performance 
Indicators required in accordance with the Local Government: Municipal Planning and the Performance 
Management Regulations of 2001 and section 43 of the MSA. These Key Performance Indicators are 
linked to the National Key Performance Areas. 



MUNICIPAL 

MUNICIPAL 

MUNICIPAL 

INDICATOR 

ACHIEVEMENT 

ACHIEVEMENT 

ACHIEVEMENT 


2016/2017 

2017/2018 

2018/2019 

The number of people from employment equity 
target groups employed in the three highest levels 
of management in compliance with a Municipality’s 
approved employment equity plan 

26 

27 

0 

The percentage of a Municipality’s budget actually 
spent on implementing its workplace skills plan 

0.13% 

0.14% 

0.14% 


TABLE 26: NKPA- MUNICIPAL TRANSFORMATION AND INSTITUTIONAL DEVELOPMENT 


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MUNICIPAL 

MUNICIPAL 

MUNICIPAL 

INDICATOR 

ACHIEVEMENT 

ACHIEVEMENT 

ACHIEVEMENT 


2016/2017 

2017/2018 

2018/2019 

THE PERCENTAGE OF (REGISTERED 
INDIGENT) HOUSEHOLDS EARNING LESS 
THAN 2 X SOCIAL GRANT PLUS 25% PER 
MONTH WITH ACCESS TO FREE BASIC 
SERVICES 

(28 564/ 37500) 

=76.2 % 

(24478 /37500) = 

65,27% 


THE PERCENTAGE OF HOUSEHOLDS WITH 
ACCESS TO BASIC LEVEL OF WATER 

71,75% 

71,75% 

71,75% 

THE PERCENTAGE OF HOUSEHOLDS WITH 
ACCESS TO BASIC LEVEL OF SANITATION 

89,51% 

89,51% 

89,5% 

THE PERCENTAGE OF HOUSEHOLDS WITH 
ACCESS TO BASIC LEVEL OF ELECTRICITY 

77% 

79%* 

80% 

THE PERCENTAGE OF HOUSEHOLDS WITH 
ACCESS TO BASIC LEVEL OF SOLID WASTE 
REMOVAL 

5% 

5% 

5% 


TABLE 27: NKPA- BASIC SERVICE DELIVERY 



MUNICIPAL 

MUNICIPAL 

MUNICIPAL 

INDICATOR 

ACHIEVEMENT 

ACHIEVEMENT 

ACHIEVEMENT 


2016/2017 

2017/2018 

2018/2019 

The number of jobs created 
through Municipality's local 
economic development 
initiatives including capital 
projects 

2400 

2650 

2650 


1500- CWP 

1500 CWP 


1150- EPWP 

1150 EPWP 


TABLE 28; NKPA- LOCAL ECONOMIC DEVELOPMENT 


3.3 SUMMARY OF MUNICIPAL PERFOMANCE 


The municipal performance is presented in terms of the six National Key Performance areas. 
3.3.1 NKPA: MUNICIPAL FINANCIAL VIABILITY AND MANAGEMENT 


ADMINISTRATION 

PROJECTS 

AS AT 30 JUNE 

2019 

BUDGET 

PERFORMANCE 

Compliance 

Section 71 

Submitted to 


y 



Provincial 




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ADMINISTRATION 

PROJECTS 

AS AT 30 JUNE 

2019 

BUDGET 

PERFORMANCE 



Treasury 




2017-2018 OPINION 

Unqualified 

with matters 


2016/2017 opinion 

2017-2018 

• An action plan was developed and 

implemented in 2018/2019 FY 


AG action plan 


Inhouse 

90% completed 

AFS 

31/08/2019 


i - Completed 

A, B, C Schedules 



4- All Submitted 

Section 72 Adjustment 

budget 

Adopted by 

Council 

28 February 

2019 

in- 

house 

❖ uploaded on portal 

MSCOA challenges still exist as the 

Municipality becomes more MSCOA 

compliant. 


2018/2019 budget 

Draft 

Final 

28/03/2018 

29/5/2018 


Submitted to NT/PT & DCOGTA 

Adopted uploaded on the 

website 


Indigent register 

implementation 



Data has been cleaned to remove the 

beneficiaries that do not meet the criteria 

in line with the indigent policy. 

■ Marshalls were used to collect data 

and a new register was developed. 


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ADMINISTRATION 

PROJECTS 

AS AT 30 JUNE 

2019 

BUDGET 

PERFORMANCE 


SCM compliance 



■ A reviewed SCM policy was adopted 

by Council and implemented in 

2018/2019 FY 


TABLE 29: COMPLIANCE TO LEGISLATION 
3.3.2 NKPA: BASIC SERVICE DELIVERY 

3.3.2.1 ACCESS ROADS 

To provide a better Local access Road network: 2018/2019 the MIG of R 36 715 000.00 was allocated. 
The allocation was fully committed. Below are the MIG implemented projects for the 2018/2019 financial 
year: 


NO. 

PROJECT 

LENGTH 

REGION 

STATUS 

1 . 

Thokoza Access Road 

7.3 KM 

Ward 18 

Not Achieved 

2. 

Hlathi Access Road 

3.1 KM 

Ward 12 

Achieved 

3. 

Mxheleni Access Road 

5.6 KM 

Ward 9 

Achieved 

4. 

Nkandla Access Road 

7.8 KM 

Ward 14 

Achieved 

5. 

Sthunzi Access Road 

5 KM 

Ward 8 

Not Achieved 


3.3.2.2 ELECTRICITY PROJECTS 

OBJECTIVE: Provision of electricity connections The number of electricity connections is the unit 
measure. 335 new connections were achieved in 2018/2019 financial year. 

■4- UNDERTAKEN BY UMSINGA MUNICIPALITY 


PRIORITY 

PROJECT NAME 

WARD 

AREA 

PROJECT 

VALUE 

CONNECTIONS 

1 

Ezingulubeni (Ngcuba) 
phase 2 

14 & 13 

Dayiswayo and 
Ngcuba 

R4.700.000.00 

42 dry connections (awaiting 
to be energised by Eskom) 

2 

Mzweni phase 3 

1 &2 

Mzweni 

R10 000 000.00 

335 connections 


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PRIORITY 

PROJECT NAME 

WARD 

AREA 

PROJECT 

VALUE 

CONNECTIONS 

3 

Douglas 

1 

Douglas 

R3 000 000.00 

49 (dry connections) awaiting 
to be energised 

5 

Phalafini 

1 

Phalafini 

R3 000 000.00 

0 Connections achieved 


S Phalafini project has not yielded any actual connections thus far because the project is a multiyear 
project which continues into the 2019/2020 financial year however ground work has been 
completed about 35 %. 

S Douglas and Ezingulubeni projects are in progress and have yielded dry connections that awaits 
Eskom to energise them. 

4- UNDERTAKEN BY ESKOM 


PRIORITY 

PROJECT NAME 

WARD 

AREA 

1 

Woza 

17 


2 

Ngubukazi/Nkamba 

2/16/17 


3 

Mumbe 

1 


4 

Gxushaneni 

16 


5 

Gordon 

16/17 


6 

Shiyane/Ndanyana 

12 


7 

Msinga Top 

14/16 



3.3.2.3 SPORTS FACILITIES 

OBJECTIVE: Upgrade of Mzisho sports-field. Percentage of completion of the 30% scope of works by 
date. 

S Mzisho Sports-Field 
S Upgrade of Mzisho sportfield 

S Completed the remaining 30% scope of works towards Mzisho sports-field upgrade by 30/6/2019 


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3.3.2.4 INFRASTRUCTURE PROJECTS: COMMUNITY HALLS, CRECHES/SCHOOL 

CLASSROOMS/HOUSES 

S Construction & completion of 16 Community Halls as per Ward Based Planning (WBPs): All 
projects are undertaken from the wards allocation as depicted in the Community Ward Plans 
(CBPs/WBPs) 

^The target was 18 community halls however only 16 Community halls were completed by 30 June 
2019. Two community halls were started but not completed. (Ntombikayise Ngcobo Hall 
ward12, Keate’s Drift hall) there were delays from suppliers of steel structure. The municipality 
will Fastrack procurement processes to avoid. 

^Infrastructure: All 18 wards in- house infrastructure programmes. As per ward plan RIO 112400.00 
- 16 COMMUNITY HALLS: Constructed and Completed 

1. Ntanyezulu hall ward 1, 

2. Sidakeni hall ward 4, 

3. Mbabane hall ward 5, 

4. Mathengwenya hall ward 6, 

5. Jojingwenya hall ward 7, 

6. Zihlabeleni hall ward 7, 

7. Bhodlendlini hall ward 8, 

8. Ndondwane Hall ward 10, 

9. Dungamanzi hall ward 10, 

10. Makhandane hall ward 13, 

11. Gcumeni hall ward 13, 

12. Mpophoma hall ward 14, 

13. Nocomboshe hall ward 15, 

14. Mabedlana hall ward 16, 

15. Thulani Nyaba hall ward 17, 

16. Ezintandaneni hall ward 09, 

■ 08 Creches 

Constructed & completed 08 Creches as per WBP by 30/6/2019: 

a) 2 Creches at ward 17, 

b) 1 Creche at ward 1, 

c) 1 Creche at ward 3, 


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d) 1 Creche at ward 8, 

e) 2 Creches at ward 9, 

f) 1 Creche at ward 14, 

■ 11 TWO ROOMED HOUSES: 

Constructed & completed 11 Two-room Houses as per WBP by 30/6/2019: Beneficiaries: 

1. Mkhize 

2. Qwabe, 

3. Benya, 

4. Ndlovu, 

5. Ngabayena, 

6. Khoza, 

7. Ngubane, 

8. Mathondi, 

9. Cele, 

10. Magwanyana, 

11. Mntungwa 

■ 3X2 CLASSROOMS 

Constructed & completed 3 x two-Classrooms for local schools as per CBP by 30/6/2019: 

I. 2 classrooms at Buhayika ward 6, 

II. 2 classrooms at Nsimbini phase 02, 

III. 2 classrooms Mthintandaba school, 

3.3.2.5 WASTE MANAGEMENT 

OBJECTIVE: To ensure proper waste management in the past financial years, the Municipality has not 
been prioritising waste management function which has led to a lot of infrastructure backlog in this field. 
It is recommended that the Municipality prioritise waste management so as to take care of the 
environment and comply with legislations and national targets. 


WASTE 2018/2019 

PROJECTS 

BUDGET 

PROGRESS AS AT 30 JUNE 
2019 

1. REFUSE COLLECTION 

Seven times a week at: 
Pomeroy, Keates Drift and 
Tugela Ferry towns 

R4 000 000.00 

100% 


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WASTE 2018/2019 

PROJECTS 

BUDGET 

PROGRESS AS AT 30 JUNE 
2019 

2. BINS INSTALLATION IN 
THE THREE TOWNS 

installation of 6 skips and 25 
bins (Pomeroy, Keates Drift 
& Tugela 

Ferry) 

R350 000.00 

100% 


3.3.2.6 HOUSING PROJECTS 

Housing projects are funded by Department of Human Settlement with the Municipality playing a 
facilitation role. The following project from 1 up to 10 are at a planning stage and some of them have 
been approved by the department. It should be noted that the implementation of these projects depends 
on the availability of funds from the department. The Municipality prepared another list from 11 to 20 
which has been approved by the previous Council and submitted to the Department of Human Settlement. 


No. 

PROJECT NAME 

WARD 

1 

Douglas Housing Project 

1 

2 

Msinga Top Housing Project 

14,15 

3 

Mzweni Housing Project 

2,1 

4 

Nhlalakahle Housing Project 

7 

5 

Mbhono Housing Project 

14 

6 

Nteneshana Housing Project 

8 

7 

Mkhuphuia Housing Project 

13 

8 

Mthembu Phase 2 Housing Project 

5, 3,6 

9 

Mahlaba Housing Project 

18 

10 

Ngome Housing Project 

11 

11 

Mngeni Housing Project 

16 

12 

Ezibomvini phase 2 housing Project 

4 

13 

Aiva Housing project 

12 

14 

Uthuli Lwezulu housing project 

11 


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15 

Pomeroy phase 2 housing project 

17 

16 

Ophathe housing project 

7,9 

17 

Pomeroy Integrated Stock 

17 

18 

Fabeni housing projects 

10 

19 

Nqoleni housing project 


20 

Ngongolo housing project 

6 


3.3.3 NKPA: CROSS CUTTING 

3.3.3.1 PROTECTION: FIRE & DISASTER MANAGEMENT 


ALL 

WARDS 

PROJECTS 

PROGRESS AT 

30 JUNE 2019 

BUDGET 

PERFORMANCE 

RATE 

1 

Fire awareness’s & incidents 
attended 


R30 000 

y 100 % 

2 

Disaster management 


Inhouse 

y ioo% 


3.3.3.2 COMMUNITY, SPORTS AND RECRREATION 


Awareness 

All 18 wards 

In house 


R3000 000.00 

Ward committees 

All 18 wards 

In house 


R3 936 000 

Special Programmes 

All 18 wards 

In house 

continuous 

R 3170 800.00 

Pauper burial 

All 18 wards 

In house 

2 coffins per ward 

R460 676,00 


ALL WARDS 

SPORT PROJECTS 

PROGRESS AT 30 
JUNE 2019 

BUDGET 

PERFORMANCE 

RATE 

1 

SALGA games 

Target met 


y 100% 

2 

Indigenous games 

Target met 


y ioo% 

3 

Reed dance 

Target Met 


y ioo% 


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Mayoral cup & 

Ward games 

Target Met 


y 100 % 

4 

uMsinga Marathon 

Target met 


y 100% 


3.3.3.3 STRATEGIC & SPATIAL PLANING 


ALL WARDS 

STRATEGIC & SPATIAL 
PLANNING PROJECTS 

PROGRESS AT 30 JUNE 2019 

PERFORMANCE RATE 


IDP preparation 

Adopted 27/03/2019 



IDP FORUM 

18/02/2019 


ADMINISTRATION 


Submitted to 

y 100% 


Draft IDP 2018/2019 

DCOGTA 29/03/2019 



FINAL 

8 th JULY 2019 



PMS reports 

Council adoption 


ADMINISTRATION 

Midyear report 

24/01/2019 

y 100% 


Quarterly reports 

3 rd -29/05/2019 



Development applications 


100 % 

Processed as and when they 
arrive. 


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3.3.4 NKPA: LOCAL ECONOMIC DEVELOPMENT & SOCIAL DEVELOPMENT 


ALL 

WAR 

DS 

LED PROJECTS 

PROGRESS AT 

30/06/2019 

BUDGET 

PERFORMANCE RATE 

1 

Pound 

In progress 

R180 000 

• 100% target met. 

• Monitoring has been 
allocated to Deputy Director 
Development Planning in 
2018/2019. 

2 

Tractors functioning 

274 plots ploughed 

Income 

• Target Exceeded 
• 240 Planned Achieved 

• 274 

3 

Agri-processing 

operationalisation 

Target meet 

R 200 

000 

y ioo% 

4 

Ward Agricultural projects 

Target meet 

All wards used their allocation 
towards increasing the 
agricultural economic output. 

R2000 

000.00 

y ioo% 

Youth projects 

Target met 

R5 663 
88.00 

y ioo% 

Bursary project 

181 people assisted with 
tertiary assistance in various 
fields. 

R1080 

000.00 

100% 


Internships 

18 offered at the Municipality. 

Salary 

vote 

y 

100% 

5 

CWP facilitation 

Target meet 

DCOGTA 

funded 

1500 jobs created through 
CWP100% 

6 

LED strategy 
implementation 

Formalising informal trading 

In progress SCM processes were 
delayed 

0 

y 


3.3.5 NKPA: INSTITUTIONAL DEVELOPMENT AND TRANSFORMATION 

3.3.5.1 ADMINISTRATION 

The objective is to properly arrange Council and committee meetings successfully. 


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ALL WARDS 

CORPORATE PROJECTS 

PROGRESS AT 30 

JUNE 2019 

PERFORMANCE RATE 

1 

Administration Council 

meetings 

✓ 

100% 

10 meetings 

2 

EXCO meetings 

✓ 

100% /13 Meetings 

3 

MPAC meetings 

✓ 

3 MPAC meeting 100% 

Audit committee meetings 

a) 

4 audit committee meetings 

100% 

Ward committee meetings 

216 

100% achieved 

216 Meetings (one meeting per ward per month) 

4 

Portfolio committee meetings 

22/24 meetings in 
total 

22 Meetings two meetings did not sit due to lack 
of items) 


3.3.6 NKPA: GOOD GOVERNANCE AND PUBLIC PARTICIPATION 


ALL WARDS 

PROJECTS 

PROGRESS AT 30 
JUNE 2019 

PERFORMANCE ACTUAL VS 
PLANNED 

BUDGET 

1 

Number of Ward committee 
meetings 

216 meetings 

216 Completed 


2 

Newsletters 

2 out of 2 planned 

& completed 


3 

Mayoral Izimbizo 

18 held 

18/18 

100% 


Mayoral talk shows 

18 shows achieved 

18/18 

R300 000 


3.3.7 MEASURES TAKEN TO IMPROVE PERFORMANCE 

As the legislation prescribes, this Annual Performance Report has been compiled in compliance with the 
requirements of section 46 (1) of the Local Government: Municipal Systems Act, 32 (Act 32 of 2000); 
which stipulates as follows: 

(1) A Municipality must prepare for each financial year a performance report reflecting— 


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a) the performance of the Municipality and each external service provider during that financial year; 
a comparison of the performance referred to in paragraph (a) with targets set for performance in 
the previous financial year; and 

b) Measures taken to improve performance. 

c) Measures taken to improve performance were discussed with the Accounting officer and the 
HOD. These are binding and will be monitored on a quarterly basis, and are presented here 
under. 


3.3.7.1 NKPA: BASIC SERVICES DELIVERY 

A) ELECTRICITY PROJECTS NOT COMPLETED- H.O.D. - TECHNICAL SERVICES 


PROJECT 

STATUS AS AT 30/6/2019 

REASONS FOR VARIANCE AND MEASURES TAKEN 

TO IMPROVE PERFORMANCE 

Douglas electrification KPI 
182# Douglas project: 

Electrify 205 House 
connections by 30/6/2019 

49 dry connections achieved 

• The Douglas project started late due to financial 
challenges Budget has been made available in 
2019/2020 

KPI185# Ngcuba 
electrification project: 

Electrify 34 House connections 
by 30/6/2019 

42 dry connections achieved 

• The project is complete but awaiting Eskom to 
energise. 

• The Municipality continues to liase with Eskom 

KPI 191#Parafin 
electrification project: 

Electrify 86 house connections 
by 30/6/2019 

0 connections 

Designs completed and SCM processes 
commenced 

• The project was delayed due to budget constraints 

• The project continues in 2019/2020 and has been 
budgeted for. 


b) ACCESS ROAD PROJECTS - TS TECHNICAL SERVICES 


PROJECT 

STATUS AS AT 30/6/2019 

REASONS FOR VARIANCE AND MEASURES TAKEN 

TO IMPROVE PERFORMANCE 

KPI 180#Sthunzi gravel access 
road: 

5km access road cleared & constructed but 
not completed by 30 June 2019. The 
project delayed due to changes in routes 

This a multiyear project to be completed by 30/6/2020. 


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7,3 km access road cleared and 

The contractor will be monitored closely through technical 

KPI 181#Thokoza gravel 

constructed but not completed by 30 June 

meetings held on a monthly basis. If no improvement, the 

access road: 

2019. Slow progress on site by the 

Municipality will appoint a competent subcontractor to 


contractor 

construct. 


C) NKPA: LOCAL ECONOMIC DEVELOPMENT 

KOPI CURIO SHOP CONSTRUCTION -(P) DEVELOPMENT PLANNING 


PROJECT 

STATUS AS AT 30/6/2019 

REASONS FOR VARIANCE AND MEASURES TAKEN 

TO IMPROVE PERFORMANCE 

KPI 155#Kopi Curio shop the 
project is the procurement 
stage. 

This is a multiyear project but there were 
land disputes that delayed the start of the 
project 

The project budget was limited thus the 
project was phased. In 2018/2019 only 
designs were done 

The (Amakhosi) Traditional Authority leaders have been 
engaged and the land issues have been resolved. The 

SCM processes have to be fast-racked. Construction is set 
to commence in 2019/20 Financial Year. 


D) NKPA: CROSS CUTTING ISSUES: 

HSP -: A) HOUSING SECTOR PLAN PREPARATION -(P) DEVELOPMENT PLANNING 
SDF - SPATIAL DEVELOPMENT PLAN -(P) DEVELOPMENT PLANNING 


PROJECT 

STATUS AS AT 30/6/2019 

REASONS FOR VARIANCE AND MEASURES 

TAKEN TO IMPROVE PERFORMANCE 

KP1145# Housing sector plan: HSP is in 
the procurement process on 30/6/2019 

The HSP had not been budgeted for by 
the Municipality with the hope that the 
Department of Human Settlement will 
fund the review. 

HSP is budgeted for in 2019/20 and has been 
advertised HSP will commence review in October 

2019 

KP1141# SDF review preparation: SDF 
Procurement processes were completed 
by 30/03/2019. The first SDF inception 
meeting & report by 30/3/2019 

This is a 2-year project and the inception 
meeting was held in March 2019. 

Capacity has been improved with the employment 
of a Town planner and an Intern Planner to speed 
up Town Planning matters 


E) NKPA: MUNICIPAL TRANSFORMATION & INSTITUTIONAL DEVELOPMENT 

PERFORMANCE AGREEMENTS OF S56/54 MANAGERS - MM 


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PROJECT 

STATUS AS AT 30/6/2019 

REASONS FOR VARIANCE AND MEASURES 

TAKEN TO IMPROVE PERFORMANCE 

KPI 225# Performance agreements of 
s54/56 Managers Submitted 
performance 04 agreements by 14th 
August 2018. 

The two HODs were employed in the 
final quarter of 2018/2019 thus their 
P.A. were concluded in June 2019. 

The extension for submission of performance 
agreements for 2018/2019 was extended to 
the 14th of August 2018. 



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CHAPTER 4: ORGANISATIONAL DEVELOPMENT PERFORMANCE 

The capacity of a Municipality to deliver on its developmental role rests upon the personnel, the municipal 
administrative element and how it relates to the political component of the Municipality. The resources 
available, the skills to deliver its developmental programmes. As such the section is concerned with the 
overall institutional environment in the Municipality. Programmes and projects in this plan have been 
formulated in order to improve efficient and effective operations. Below are some of the key issues that 
fall within the department that is responsible for institutional development in the Municipality. 

4.1 ORGANIZATIONAL DEVELOPMENT 

It is divided into two components: 

a. Council: 

Council is the structure in which the executive and legislative authorities of a Municipality are vested. The 
roles of Council amongst others are the approval of policies, budgets, by-laws etc. There are 37 
Councillors which include the Mayor, Deputy Mayor and the Speaker. There are 8 members of the 
Executive Committee and 29 ordinary Councillors. Council is made of 13 female Councillors which is a 
sign that transformation is occurring which is admirable of a rural male dominated community. 

b. Administration: 

Administration under the leadership of the Accounting Officer; the Municipal Manager, Mr Senzo Sokhela. 
The Municipality has five administrative departments, all four being headed by relevant Directors 
including the Chief Financial Officer and the fifth is headed by the Municipal Manager. The Municipal 
Manager is responsible for the efficient and effective operations of all departments. The Head of 
departments are all employed in terms of a five-year contract (s 54/56). All six critical positions (s 54/56) 
are currently filled. 

4.2 POWERS AND FUNCTIONS 

The Municipal Systems Act clarifies several issues relating to municipal powers, functions and duties. A 
Municipality has all the functions and powers assigned to it in terms of the Constitution. It also has the 
right to do anything reasonably necessary for, or incidental to the effective performance of its functions 
and the exercise of its powers. National and provincial government assigns additional functions and 
powers to local government, which are best, exercised at a local level and this helps to ensure that the 
three spheres of government work in a co-ordinated way. In terms of the Municipal Structures Act as well 


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as the Constitution (1996), specific powers and functions are assigned to District and Local municipalities 
respectively. The uMsinga Municipality is performing the powers assigned to it in terms of that legislation 
as deemed necessary at this stage and these are highlighted in the table below. 


FUNCTION 

LEVEL OF 

AUTHORITY 

PERFORMING / NOT PERFORMING 

Water and Sanitation 

uMzinyathi District 

Yes, through Thukela Water 

Partnership 

Roads and Storm water 

uMsinga 

Yes - in towns. 

Upgrading of local access roads 

Air Pollution 

uMsinga 

No 

Building Regulations 

uMsinga 

In Pomeroy only 

Child Care Facilities 

uMsinga 

Yes 

Fire Fighting 

uMsinga 

Shared with district 

Local Tourism 

uMsinga 

Yes 

Municipal Planning 

uMsinga 

Yes 

Public Transport 

uMsinga 

No 

Trading regulations 

uMsinga 

Yes (process of formalising street traders is underway) 

Billboards 

uMsinga 

Yes 

Cemeteries, Crematoria and 

Funeral 

Parlours 

uMsinga 

Partially - no crematoria. Private funeral parlours 

Cleansing 

uMsinga 

Yes 

Control of Nuisances 

uMsinga 

No 

Control of Undertakings that sell 

Liquor to the public 

uMsinga 

yes 

Facilities for the accommodation, 
Care and burial of Animals 

uMsinga 

No 

Fencing and Fences 

uMsinga 

No 

Licensing of Dogs 

uMsinga 

No 

Licensing and control of 
undertakings that sell food to the 
public 

uMsinga 

No 

Local amenities 

uMsinga 

Yes 


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FUNCTION 

LEVEL OF 

AUTHORITY 

PERFORMING / NOT PERFORMING 

Local sports facilities 

uMsinga 

Presently performed by the District 

Local markets 

uMsinga 

No 

Municipal abattoirs 

uMsinga 

No 

Municipal Parks and Recreation 

uMsinga 

No 

Municipal roads 

uMsinga 

Yes 

Noise pollution 

uMsinga 

No 

Pounds 

uMsinga 

No 

Public places 

uMsinga 

Yes 

Refuse removal, Landfill sites and 
solid waste disposal 

uMsinga 

Yes 

Street trading 

uMsinga 

No 

Street lighting 

uMsinga 

No 

Traffic and parking 

uMsinga 

No 


4.2.1 UMSINGA MUNICIPAL POWERS AND FUNCTIONS 

4.2.1.1 Organizational structure/ Organogram 

The municipal organizational structure has been adopted by Council on the 28 th June 2019 and is 
attached as an annexure. 

4.2.1.2 Municipal institutional capacity & status of critical posts 

100 % of all critical posts at uMsinga Municipality are currently filled; it’s the Section 56/54 posts, which 
are Municipal manager, Director of Development Planning, Director Technical Services, the CFO, 
Director Corporate Services, and Director of Community Services. 

4.2.1.3 Human Resource Development 

The list of employees who will receive training in 2018/2019 has been compiled to remedy the gaps 
identified in 2017/2018 financial year. 


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4.2.1.4 Training and Skills Development 

Training and development of staff and Councillors is on-going. A Work Place Skills Development Plan 
has been compiled and was approved by the LGSETA. Up to this time the Mayor, three senior managers 
and the Municipal Manager have successfully completed the Executive Leadership Development 
Programme offered by SALGA. Training needs of staff are identified and where funding is available, the 
staff attends training courses as well as seminars and workshops. A key aspect of the Institutional 
component is the continuous development of the capacity of the Municipality and its officials. In particular, 
the capacity to plan, implement, monitor and evaluate the development programmes as set out in the 
IDP. 

Skills profile: 

■ 4% employees have NQF levell - general workers and drivers 

■ 27% employees have NQF level 3-general workers and clerical 

■ 5% employees have NQF level 6-8- Directors and senior management 

■ 44% employees have NQF level 4-5 - senior personnel 

The Municipality has an internship programme focussing on LGSETA scarce skills such as audit, finance, 
supply chain, and civil engineering. Skills priority for 2018/2019 is as per table below. 

4.2.1.5 Employment Equity 

An Employment Equity Policy has been adopted by the uMsinga Municipality. uMsinga Municipality is 
an equal employer with targeted groups represented in various layers of the municipal structure. There 
have been remarkable changes in the administration as all HODs as at 30 June 2018 were black males, 
while women occupy the middle management. In 2018/2019 the new HODs changed the face of the 
municipal administration with two female HODs added to the staff complement. A total of 2% of the staff 
complement is disabled. As at 30 June 2019 there was no non-African employee in a total staff 
complement of 1366 employees. 


EEP COMPLIANCE 

STAFF COMPLEMENT 

Number of vacant posts (critical posts) 

0 


Contract 

38 

Total employees to date 

Councilors 

36 


Volunteers 

18 


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EEP COMPLIANCE 

STAFF COMPLEMENT 


Securities 

95 


Peace Officers 

29 


Finance Interns 

05 


In-Service Training 

0 


Environmental Interns 

07 


Ward Committees 

190 


Food for Waste 

Programme 

130 


Siyazenzela 

958 


Alien Plant Removal 

0 


Total 

1505 

Permanent staff 

133 

Disabled 

03 

Males 

173 

Females 

97 

Management (s56/57) 

06 

Employees under 35 years of age 

136 

Employees over 35 to 55 years of age 

136 

Employees above 55 years of age 

35 


POLICY 

STATUS 

HUMAN RESOURCE MANAGEMENT 

Recruitment selection appointment promotion 
and transfer of personnel 

Operational 

Employment equity 

Operational 

Subsistence and travel 

Operational 

Payment of overtime 

Operational 

Grievances 

Operational 

Working hours 

Operational 

Transport allowances 

Operational 

Homeowners allowance 

Operational 

Sexual harassment 

Operational 


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POLICY 

STATUS 

HIV/Aids 

Operational 

Leave 

Operational 

Discipline 

Operational 

Salaries 

Operational 

Termination 

Operational 

Occupational health and Safety 

Operational 

Maternity 

Operational 

Communication Strategy 

Operational 

FINANCE 

Petty cash 

Operational 

Supply chain management 

Operational 

Asset management 

Operational 

Fleet management 

Operational 

Investment and cash management 

Operational 

Credit control and debt collection 

Operational 

Information communication and technology 

Operational 

Contract management 

Operational 

Blacklisting 

Operational 

Loss control 

Operational 

Land asset disposal 

Operational 

Risk management 

Operational 

Virement 

Operational 

Budget 

Operational 

Travel and subsistence 

Operational 

Store management 

Operational 


TABLE 51: MUNICIPAL POLICIES 
4.2.1.6 COUNCIL COMMITTEES 


Council Committee are comprised of the following: 

• Executive Committee: This committee meets monthly 


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• Finance Portfolio Committee 

• Administration Portfolio Committee 

• Technical Services Portfolio Committee 

• Planning Portfolio Committee 

• Community Services Portfolio Committee 

The above committees conduct bi-monthly meetings 

• MPAC 

• Audit Committee 

• Housing Forum 

The above committees meet Quarterly. All of the portfolio committees are chaired by members of the Executive 
Committee. 

4.2.1.7 RISK MANAGEMENT 

Risk management derives its mandate from the following legislation and corporate governance guidelines 
Section 62(1 )(c)(i) of the Municipal Finance Management Act 56 of 2003 (MFMA), which prescribes that 
the accounting officer must ensure that the institution has and maintains effective, efficient and 
transparent systems of financial and risk management and internal control. 

Section 3.2.1 of the Treasury Regulations which further prescribes that: “the accounting officer must 
ensure that a risk assessment is conducted regularly to identify emerging risks of the institution. A risk 
management strategy, which must include a fraud prevention plan, must be used to direct internal audit 
effort and priority, and to determine the skills required of managers and staff to improve controls and to 
manage these risks. The strategy must be clearly communicated to all officials to ensure that the risk 
management strategy is incorporated into the language and culture of the institution. 

King Report on Corporate Governance for South Africa 2002, which applies to “public sector enterprises and 
agencies falling under the Public Finance Management Act and the Municipal Finance Management Act...” 

Provincial Treasury conducted enterprise Risk management Framework compliance at uMsinga 
Municipality on the 18 February 2013 and made recommendations in the form of actions that require 
management to improve compliance. Among the matters that require attention is 

• Approval of the ERM framework by Council 

• Establishment of Risk Management Committee 

• Schedule Risk Management meetings 

• Approval of Fraud Prevention policy by Council 


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• Communication of risk Management and Fraud policies to officials 

• Risk management training 

• Ownership of the risk register by key officials 

• Audit committee’s review of the Municipality’s risk profile 

• Internal Audits evaluation of risk management processes 

An action plan to fix the identified risks has been put in place, to assist the Municipality with the required 
expertise the Provincial treasury is assisting with practical implementation of effective risk management 
activities. 

The organisational development function falls under the Human Resource Department. Its main 
objectives are to manage organisational design and business modelling, coordinate culture and change 
management, administer job descriptions, job evaluation system management and to develop and 
maintain an effective employee efficiency system and awards process. Its focus is also the development 
of employees to ensure that uMsinga Municipality has a skilled workforce. 

4.3 INTRODUCTION TO THE MUNICIPAL PERSONNEL EMPLOYMENT EQUITY 

The Municipality has been fortunate to attract highly skilled senior managers and a Municipal Manager 
to head the organisation. All Directors posts and Municipal Manager were appointed and all critical 
vacancies have been filled in 2018/2019. 

4.4 MANAGING THE MUNICIPAL WORKFORCE 

The Municipality has been fortunate to attract highly skilled Senior Managers and a Municipal Manager 
to head the organisation; and to populate the new structure with suitably qualified employees in the posts 
on the new organogram. The focus of the Municipality in the second semester of the financial year was 
on staff morale. Many of the employees were unhappy because of not having information on Job 
evaluation that left other employees unhappy. Employees have also been encouraged to amend their job 
descriptions and also been consulted on the proposed new structure. Employees who have been waiting 
on their TASK outcomes letters were also given their letters between December 2017 and February 2018. 
The outcomes of the new job evaluation put a strain on the budget because the Municipality had not 
made a provision for salary increases in the 2017/2018 financial year. In the 2018/2019 financial year 
budget provisions were made and salary increases were implemented successfully. 

No deaths or major injuries at work were experienced in the reporting period. The Health and Safety 
Officer and line management are encouraged to continuously increase awareness amongst employees 


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in order to minimise the occurrence of injuries. Accredited training in respect of Occupational Health and 
Safety is 3 implemented annually for health and safety representatives and employees. This assists in 
increasing awareness and reduces health and safety accidents. Personnel records of the number of sick 
leave instances are recorded and kept in the HR or payroll system. Trained first aiders are available at 
all sections and first aid kits are provided and continuously replenished to ensure that first aid is applied 
in the case of an incident occurring. No employee suspensions occurred in the 2018/2019 financial year. 

*AII permanent employees, except the Municipal Manager and the Senior Managers reporting directly to 
him, receive a 13th cheque as part of their contract of employment. 

4.4 PERFORMANCE REWARDS 

Performance bonuses for the 2016/2017 financial year were not paid out to the Municipal Manager and four Senior 
Managers reporting directly to him during the 2016/17 financial year. Provision was made for the 2016/17 
performance bonuses to be paid out in the 2017/18 financial year to the MM and the five Senior Managers reporting 
directly to him. The bonus was not paid out to s56/54 managers because during the 2017/18 financial year the 
Municipality experienced unprecedented changes on the management levels which disrupted normal functioning 
and bonuses were delayed pending legal advises. 

All other permanently employed staff were entitled to a 13th cheque that was paid out to them, the 13th cheque is 
a contract of employment benefit and is not subject to a performance evaluation. However, a 13th cheque may be 
withheld but only as a punitive measure based on a found guilty sanction imposed in a disciplinary process. 

4.5 CAPACITATING THE MUNICIPAL WORKFORCE 

The Municipality continuously prioritizes education, training and development in order to ensure that its 
employees acquire necessary knowledge, skills and competencies that enables advancement of its 
strategic mandate. The below focus areas were successfully implemented during 2018/2019 and has set 
a tone for uMsinga Municipality as a learning organisation: 

■ Implementation of the Workplace Skills Plan 2018/2019 and ninety-nine percent (99%) incurred 
expenditure from the Council Training Budget; 

■ LGSETA Discretionary Funding 2018/2019 approval granted towards twenty-four (29) learning 
programmes initiated for the financial year. The programmes are full qualifications and learnership’s 
targeting critical municipal areas like Integrated Development and Planning, Financial Viability, 
Infrastructure and Community Development; and 


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■ Implementation of Employee Bursaries Programme 2018/2019 work Integrated Learning and 
Vacation Work for students, and Mayoral Bursary Programme for unemployed students / youth. 

■ 270 ward committee were trained with DCOGTA s assistance. 

4.6 MANAGING THE WORKFORCE EXPENDITURE 

4.6.1 INTRODUCTION TO WORKFORCE EXPENDITURE 

Accountability and transparency are important when managing workforce expenditure. It is important to 
ensure that the Municipality plans to use their human capital effectively, efficiently and economically. To 
ensure that the Municipality adheres to legislation, only approved and budgeted posts on the structure 
are advertised. All positions are advertised on the Municipality’s website and in the local media. This also 
applies to bursaries. Advertising in other media is based on the target market for the post. This saves on 
advertising costs and in the electronic age gives easy and quick access to applicants. uMsinga 
Municipality strives to appoint employees who share the vision of striving to achieve corruption free, 
eradicating poverty, enhance integrated and sustainable development” and who will add value to the 
organisation. The training and development of internal staff is aimed at ensuring that they are able to 
perform their duties better. 

4.6.2 COMMENT ON WORKFORCE EXPENDITURE 

uMsinga Municipality’s workforce expenditure of 2016/2017 account for R 29 891 272 and increased in 
2017/2018 financial year to R 37 637 537. For the financial year of 2018/2019 R52531 244. The figure 
stated above excludes remuneration of s54/56 employees. 

The HODs S56/54 remuneration packages are individually disclosed in the AFS because their 
appointment into the office determined their remuneration in 2018/2019. All S54/56 were paid according 
to the grade 1 of the official gazette published on the 08 November 2018 and also receive other benefits 
as per the municipality’s policies as stated in the AFS pages 39 and 40. 

4.6.3 DISCLOSURES OF FINANCIAL INTERESTS 

Disclosures have been made by officials and Councillors concerning their financial interests, as required 
by Municipal Performance Regulations 805 of 2006 and are set out in Appendix I. No transgressions due 
to financial interests occurred. 


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Chapter 1: Executive Mayor's Foreword and Executive 
Summary 


Chapter 2: Governance 

■ v 


Chapter 3: Service Delivery Perf ormance (Performance 
Report) 


Chapter 4: Organisational Develo opment Performance 


Chapter 5: Financial Performance 



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CHAPTER FIVE: FINANCIAL PERFOMANCE 

5.1 ANALYSIS OF FINANCIAL STATEMENTS 

We have conducted analysis of financial information taking into account the four past financial years 
starting from 2015 to 2018 financial years for UMsinga Municipality. The source documents utilized for 
financial review is depicted by the table below: 

The Annual Financial Statements submitted have been prepared in accordance with the Standard of 
Generally Recognized Accounting Practice (GRAP) including any interpretations, guidelines and 
directives issued by the Accounting Standard Board. 

5.1.1 REVENUE 

UMsinga Municipality has experienced a regular increase in operating revenue from 2015 to 2016 with 
R30m. however the Municipality had a decrease in 2017 and 2018, R29.8m and R1.3m respectively. The 
decrease in revenue is as a result of decrease or low government grant allocation from fiscus due to 
economic situation in the world across. The total government grant allocation for the current year, 
2018/2019 is R333 (2018: R208m). 

Therefore, the Municipality is optimistic that its operations won’t be affected in the foreseeable future. 

5.1.2 SURPLUS 

UMsinga Municipality has experienced a steady increase in surplus from 2016 to 2018 with R98m in 
2016 R10.3m in. The increase in surplus maybe directly linked to the progressive increase in total 
revenue in proportion to the operating costs over the period. 

5.1.3 OPERATING COSTS 

The operating costs varied with 80%, 74%, 95% and 96% in 2015, 2016, 2017 and 2018 respectively of 
the corresponding revenue. 

5.1.4 OPERATING PROFIT 

The Municipality has been experiencing reasonable operating surplus from 2015 to 2018 with operating 
profit of R33 in 2015, R58.2m in 2016, R8.9m in 2017 and R6.6m in 2018. The operating surplus for the 
year-to-date figures for each show that the Municipality does not exceed its revenue every year since 
2015. 


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5.2 REVIEW OF THE STATEMENT OF FINANCIAL POSITION 

In performing financial statement analysis, we reviewed the past financial statements of uMsinga Municipality and the supporting schedules. We particularly 
focused on the liquidity of the Municipality and its ability to generate cash as well as the firm’s access to credit facilities. 

5.2.1 WORKING CAPITAL 

The Net working capital or working capital is defined as current assets minus current liabilities. It is a measure of both a company’s efficiency and its short-term 
financial health or status. 

5.2.1.1 KZN244 Msinga Table C4 Monthly Budget Statement • Financial Performance (revenue and expenditure) - Ml2 June 


Year 


DESCRIPTION 

RTHOUSANDS 

REF 

2017/18 

AUDITED 

OUTCOME 

ORIGINAL 

BUDGET 

ADJUSTED 

BUDGET 

MONTHLY 

BUDGET 

YEAR TD 
ACTUAL 

2018/19 YEAR TD 
BUDGET 

VARIANCE 

VARIANCE 

FULL YEAR 
FORECAST 




12 000 




17 235 




Revenue by Source 


13 085 


17 235 

1764 

489 


i 234 

7% 


Property rats 










17 235 

Service diarges • 


127 

500 

500 

42 


500 

4 

1% 


ebctidb' revenue Service 



450 




705 



2700 

dwges waer revenue 


427 

350 

2700 

88 

1 740 

2700 

(960) 

■33% 


Servbe charges - saniun revenue 


4007 

2700 








Servbe charges - reti* revenue 



12 oco 







152928 

Servbe dwges - oher 




152 928 


152928 

152 928 



614 

Renbl offaciites and equipment 


17B939 


614 

2 

4272 


3 658 

596% 









614 





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DESCRIPTION 

RTHOUSANDS 

REF 

2017/18 

AUDITED 

OUTCOME 

ORIGINAL 

BUDGET 

ADJUSTED 

BUDGET 

MONTHLY 

BUDGET 

YEAR TD 
ACTUAL 

2018/19 YEAR TD 
BUDGET 

VARIANCE 

VARIANCE 

FULL YEAR 
FORECAST 

- exbrnal 
investrpnb 

ou&nding 

debbrs 

and trEiS 

LEonces and perrriE 

Agency servbes 

Tranars and 

Oher revenue 

Gains ondisoosal of PPE 



207 118 








Total Revenue (excluding capital 
transfers and contributions 


196 585 

235118 174682 

1 894 

178 618 

174 682 

3 937 

2% 

174 


■ It must be appreciated that the property rates budget of Rl 7 235m indicate immaterial variance with the YTD actual of Rl 8 469m. It also indicates that 
the corrective measures taken during the adjustment budget we prudent, and an indication of good financial management by the Municipality. 

■ Refuse revenue budget of R500 000 also indicates that it was well speculated. The year to date actual of R504 000 lead to a variance of only 1 This is in 
line with the revenue budget principles, that the budget forecasts must be representative of what could be really happen in practice. 


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■ It must be noted that the YTD actual for Rental of Facilities of R705 000 represents the actual amounts received, it does not represent billed amount. The 
Municipality is supposed to be billing Rental of Facilities. This also means that the exact above figure will appear on the Cash Flow. 

■ The interest on investment indicate an under performance of 36%. This does not suggest that the Municipality is not efficient in this regard. What must be understood 
is that invested funds are on the short term or call account bases, this ensures that the Municipality has accessible cash reserves. This talks to the priorities of the 
Municipality in terms of ensuring that there is sufficient liquid cash to meet both expected and unexpected needs. 

■ Other Revenue indicate over performance of 596%. This over performance indicate that the YTD actuals out performs the forecasted budget. The analysis conducted 
indicated that Vat Returns were mistakenly omitted from the budget. This trend will be reflected upon for future budget purposes. 

5.2.1.2 EXPENDITURE AND CAPITAL TRANSFERS 


Description 

R thousands 

Rd 

201711B kudtted 

Oltcome 

Original 

Budget 

Adjusted 

Budget 

Monthly 

actual 

Budget Year2018/19 
Year TD actual 

YearTD 

budget 

variance 

variance 

Full Year 

Forecast 

Ex enditureB T e 

Enpbyee rehbd coe 

Renuneraion of mundhrs 

Debt itrpurrent 

Depredafon & assetinpatnmt 
aarges 

Buk purdlases 

Oher tnaerias 

Contactd services 

Tranirsand subSdbs 

Oher expendiuro 

Loss on d sal ofPPE 


41 062 

3 302 

21 496 

560 

8424 

99 806 

52 549 

9925 

400 

9528 

54 773 

5 007 

10 098 

92 393 

61 381 

9 381 

22 014 

63 513 

55 836 

5 026 

961 

28 064 

1 835 

42 

12722 

5622 

61 538 

11 843 

28 064 

22014 

417 

49 916 

46 678 

61 

381 

9 381 

22 014 

500 

63 513 

55 836 

157 

2463 

25 064 
(83) 

(3 787) 
(13597) 
(9 15B) 

835% 

-17% 

-16% 

61 381 

9 381 

22 014 

500 

63 513 

55 836 

Total Ex enditure 


188869 

234 673 

227 325 

55 589 

22B 384 

227 

325 

1 059 

0% 

227 325 


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Surplusl(Deficit) 

Tranirs and subSdks - capu (rmruy 
atbcans) 

(Naional / Provhcial and 

Tranirs and subSdbs • capa abcuns) 
(Nanai 1 Provhcial DepartTEnbl Agendes, 
Househodsa Nonproit PrWab Enbryises, 
PubZ Corporabns, Heher Educabnal 
Iniuions) 

Tranirs and subedies - capitl (in-kind - al) 
Surplus/(Deflclt) after capital transfers & 
contributions Taxaion 
Surplusl(Deficlt) after taxation 
Atibubbb b ninorifes 

Surplusl(Deflcit) attributable to Municipality 
Share of upw dei of asodae 


7716 

38 032 

445 

(52 643) 
57415 

(53 695) 

(49 765) 

57415 

(52 643) 
57415 

4 772 

2878 


(52 643) 

57 415 

45748 

37 

4 772 

(53 695) 

7 650 

4 772 

45 748 

37 160 

4772 

(53 695) 

7 650 

4 772 



4 772 

45 748 

37160 

4 772 

(53 695) 

7 650 

4 772 

4 772 

Surplus' (Deficit) for the year 


45748 

37160 

4 772 

(53 695) 

7 650 

4 772 



4 772 


5.2.1.3 REVENUE NARRATIVE STATEMENT: 


• Notable is the 26% variance on Remuneration of Councillors, The variance indicate an over performance over budget. It was noted in previous report 
that the main reason for this relative additional was infected by the change of the Municipal grade, which meant that there has to be an additional monetary 
provision for Council. The upper limit outcomes were implemented after the adjustment budget period. 

• Debt Impairment, on the 2019/06/10 the Council took a resolution to write-off irrecoverable debtors. This was also done together with the approval of 
Data Cleansing Report. It must be noted that this is a non-monetary transaction and no physical cash transactions were affected. 

• Another notable item are transfers and subsidies, both capital and operational. I must be noted that the Municipality has received all the gazetted transfers 
and subsidies from both National and provincial government. 


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GRANTS: 


Details 

GRANT REGIST 

Grant Received To 

Date 

Allocation as per (Dora) 

Column2 

Total 

Expenditure 





Municipal Infrastructure Grant (MIG) 

36 715 000.00 

36 715 000.00 

36 715 000.00 

Financial Management Grant (FMG) 

1 900 000.00 

1 900 000.00 

1 904 323.89 

Library Grant 

1 061 000.00 

1 061 000.00 

1 061 000.00 

Integrated National Electrification 

20 700 000.00 

20 700 000.00 

20 700 000.00 

Programme (INEP) 





4 394 000.00 

4 394 000.00 

4 394 000.00 

EPWP 




EQS 

145 573 000.00 

145 573 000.00 

131 000 000.00 

SPORTS GRANT 

1 333 333.00 

1 333 333.00 

1 333 333.00 





TOTALS 

210 343 000.00 

211 676 333.00 

197 107 656.89 


It must be noted that the Municipality received all gazetted grants. Notably is the issue of conditional grants. It must be noted that the Municipality has spent all its 
conditional grants however there was a concern on the slack experienced on executing conditional grants projects. Proper management of these projects it’s so 
crucial for this Municipality. Failer to execute grant funded projects has serious consequences on the budget power of the Municipality. 


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INVESTMENTS 

The table below indicate the status of Municipal investment as then of June 2019. 

UMSINGA LOCAL MUNICIPALITY INVESTMENTS 


PFRIOnFMY¥IIINPfllQ 


NAME OF THE BANlfi 

AMOUNT INVESTED 

til ACCOUNT NUMBElflTEREST 

FNB 

R1 404 355.80 

62778819303 

5.75% 

FNB 

R1 028 880.21 

62499591777 


ABSA 

R665 941.85 

2064443721 

6.82% 

ABSA 

R637 518.29 

2076957671 

6.82% 

STD BANK 

R10 000 000.00 

348466013-001 

7.50% 

STD BANK 

R10 153 751.31 

348466013-008 

7.60% 

STD BANK 

R 1 333 333 

62219979 

7.50% 

TOTAL INVESTMENTS 

R25 223 780.46 




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As depicted in the table above, the table indicate that the Municipality had R25 223m cash backed reserved invested in commercial bank within the boundaries of 

MFMA. 

■ It must be noted that this cash flow does not represents audited figures. The Cash Flow indicate that the Municipality closed the year that has just ended 
on financially stable position, the Municipality closed the year with the Cash and Cash Equivalent of R25 081 m. 

■ The Municipality should maintain a healthy cash backed reserves. The future is not 100% predictable. The Municipality must at all times be in a position 
to deal with unexpected situations. 

■ Senior perform proper market research interns of market related prices on projects and items they want to procure. That the budget paper file with business 
plans are submitted together for budget inputs. This will encourage proper financial planning and will ensure that the Municipality receive value for money 
on approved budget. 

5.3 SUPPLY CHAIN MANAGEMENT 

■ 227 tenders were awarded in 2018/2019 amounting to R21 347 542.95 

■ Local businesses were the biggest beneficiaries in terms of contracts awarded 

■ We are monitoring the performance of service providers and nonperforming suppliers. 

■ We are also linked to the Centralised Supplier Database (CSD) developed by National Treasury and we are only doing business with suppliers and service 

providers accredited by the CSD 

■ The Municipality is in support of the green economy and more support will be provided to the green products 

■ Ultimately, the key is to ensure that our ratepayers get better bang for their buck 

There have been several improvement initiatives undertaken within the procurement: 


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■ Monthly meetings where we monitor progress on project under construction and rate supplier performance 

■ Training of staff and municipal Council on Supply Chain management and contract management 

■ Improved internal controls to reduce fraud and corruption 

■ Benchmarking of prices of goods and services to ensure value for money 

■ The Municipality fully implement the reviewed PPPFA Regulations and more contracts are to be awarded and set aside for previously disadvantaged 
communities including women, people living with disabilities and youth owned businesses 

The current economic climate is a concern. The Municipality has invested hugely in infrastructure and achieved 100 percent expenditure on the Municipal 
Infrastructure Grant and Integrated National Electrification Programme (INEP) Grant. Accordingly, the Municipality is committed National Treasury’s approach of 
fiscal consolidation which means reducing debt, improving productivity, and enhancing revenue collections. UMsinga Municipality is one of the underdeveloped 
in terms of infrastructure. However, we want to partner with local businesses and create more opportunities for our communities. We are committed to creating a 
conducive environment for existing businesses and an enabling environment for new businesses. Job creation and growing the economy are our key focus. 

5.4 INTERNAL AUDIT 

Internal Audit Committee: An internal auditor unit has been created internally and at present it consists of three members. The Municipality has reviewed the 
internal audit chatter to include the scope of the work and accountability in line with circular 65 and to comply with IAA standards. In an attempt to iron out all 
concerns raised by Auditor General for the year under review the Municipality has requested KZN Treasury, Auditor General and COGTA financial management 
unit to take part in Audit Committee meetings to ensure the municipal performance is audited in line with all the required pieces of legislation. 

The municipal Internal audit unit is new and needs further capacity as per Auditor general’s findings. 


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5.4.1 AUDIT COMMITTEE 

Report of the audit and performance committee to the council of Msinga municipality for the quarters ending 30 June 2019 & 30 September 2019. 

The Msinga Municipality’s Audit and Performance Committee (AUDCOM) present its report to the Council for the quarters ending 30 June 2019 and 30 September 
2019. 

5.4.1.1 Mandate 

The Msinga Municipality established an AUDCOM in terms of section 166 of the MFMA, section 14(2)(c) of the Local Government Municipal Planning and 
Performance Regulations, 2001 (Regulations) and MFMA Circular No. 65 issued by the National Treasury in November 2012. Consideration has also been given 
to the recommendations contained in the King Report on Governance for South Africa 2017 (King IV). 

5.4.1.2 Members and attendance at meetings 

The AUDCOM is comprised of 5 independent, external members and the AUDCOM members are Mr M Langa (Chairperson - Audit Committee), Ms Z Khanyile 
(Chairperson - Performance Committee), Mr V Tembe, Mr M Madonsela and Mr N Mchunu. The AUDCOM is required to meet at least 4 times per annum, in line 
with S 166 of the MFMA. Members’ attendance at the meetings is detailed below: 


Name 

No of 
Meetinas 

21 -Mav-1 9 

28-Mav-1 9 

1 5-Aua-1 9 

20-Aua-1 9 

27-Aua-19 

Attended 

Mr M Langa 

5 






Ms Z Khanyile 

5 




s 

s 

Mr V Tembe 

3 



s 

Mr M Madonsela 

5 






Mr N Mchunu 

3 





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Apologies were received from members for meetings where they were unable to attend. 

5.4.1.3 Responsibility 

The legal responsibilities of the AUDCOM are set out in terms of section 166 of the MFMA and operate within the terms of the Audit and Performance Committee 
Charter approved by the Council. 

In the conduct of its duties, the AUDCOM has performed the following statutory duties relating to the quarters ending 30 June 2019 and 30 September 2019: 

5.4.1.4 Internal Audit Reports 

The following reports were tabled before the AUDCOM during this period: 

■ Indigent Support 

■ Insurance 

■ Asset Management 

■ Section 71 reporting (Q3 & Q4) 

■ AG follow up 

■ Fleet Management 

■ ICT 

- MSCOA 

■ Contract Management 

- VAT 

■ Leases 

■ Bank and Investments 

■ Expenditure 

■ Payroll 


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■ Performance Management (Q3 & Q4) 

The AUDCOM noted the reports tabled and where necessary, we expressed our uneasiness on those reports containing high risk findings, especially if they could 
ultimately impact on the non-compliance with legislation and possible misstatements in the financial statements, and management has begun to address the 
weaknesses identified. 

5.4.1.5 Internal Audit Progress on the 2018/19 Approved Plan 

As at 30 September 2019, the internal audit team had completed almost all the audits in terms of the approved plan and a few assignments had to be moved to 
2019/20 with reasons given for such. Given the backlog of the assignments against the plan that had to be cleared within a limited timeframe, concerns were 
raised by the AUDCOM on the nature and extent of some of the reports presented at the meetings and in some instances, the reports had to be resubmitted after 
the corrections or updates had been made. 

The AUDCOM would like to commend the internal audit team (both in-house and co-sourced staff) for their dedication and hard work in driving progress against 
the approved plan. 

The AUDCOM has noted the 2019/20 internal audit plan presented during these quarters and has since approved the plan for execution. The plan is appended 
to this report. 

5.4.1.6 2019/20IDP, SDBIP & Budget Review 

Part of the mandate for the AUDCOM involves the review of the strategic planning documents such as the IDP, SDBIP and Budget. These documents were 
presented to the AUDCOM for review, however the AUDCOM raised concerns about the inadequate time given for the review as well as the content of these key 
documents. As a result, the AUDCOM noted these documents with concerns and recommends that in future, sufficient time should be afforded to the process of 
developing and review of these documents. 


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5.4.1.7 Annual Financial Statements & Performance Report-2018/19 

As legislated in the MFMA, the municipality must submit the annual financial statements and annual performance report by 31 August. Prior to this submission, 
the AUDCOM, with the assistance of internal audit, must review the AFS and APR for accuracy and completeness. 

The AUDCOM reviewed both the AFS and APR as initially submitted for our consideration. There were a number of corrections that were suggested from the 
initial review, the majority of which were subsequently corrected by management. The management & staff must be commended for their role in the preparation 
of both the AFS and APR, as well as the internal audit team for their review. 

5.4.1.8 Auditor-General of South Africa (AGSA) Audit Report- Corrective Action Plan 

During these two quarters, the AUDCOM has been tracking closely the corrective action plan that was prepared by management. It has been pleasing to see a 
number of items in the plan being resolved while the remainder has been in progress. The AUDCOM certainly hope that in future, the items of the action plan will 
be cleared sooner in the quest for achieving a Clean Audit outcome. 

5.4.1.9 Risk Management 

The AUDCOM is responsible for overseeing management’s risk framework and policies and discussing the Municipality’s key risk exposures with management. 

The AUDCOM was presented with the latest updated risk registers, which indicated progress made on the mitigating controls implementation. Majority of the gaps 
previously noted by the AUDCOM have been addressed, which have resulted in significant improvements in the layout and content of the risk registers. The 
AUDCOM therefore would like to commend management together with the Risk Management Committee for their commitment in driving the risk management 
process. 


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5.4.1.10 Human Resources 

The AUDCOM has been presented with reports detailing appointments, terminations, vacancies together with the recruitment plan, skills development 
programmes, among other things. For the period under review, the AUDCOM was pleased that the vacancies of key positions for Director: Technical Services 
and Director: Development & Planning. 

5.4.1.11 Compliance with Laws and Regulations 

As it has been reported previously, the municipality has been exploring the best way it can track and manage compliance with legislation applicable to it. This 
involved looking at how other municipalities are best managing this process and the tools they are using. Management, with the advice & guidance of Mr V Tembe 
(AUDCOM member), has developed a draft framework in this regard and this will remain as work in progress as the team is developing this further. 

5.4.1.12 AUDCOM session with the Accounting Officer 

The AUDCOM had a one on one discussion with the municipal manager to discuss certain areas of concern as well as improvement in the functioning and impact 
of the AUDCOM. The municipal manager noted these areas and has since developed an action plan to address the areas noted. It is pleasing to see that there 
are improvements already being observed and the AUDCOM hopes that the management will be consistent in driving this action plan for more positive results. 

5.4.1.13 Follow up on key issues and recommendations 

■ The Municipal Manager should ensure that recommendations of internal and external audit are implemented as per the action plans and report progress 
on a quarterly basis. 

■ Management must implement and monitor the Combined Assurance Model regularly. A comprehensive report must be given to the Council so that 
progress is tracked on its implementation. This area has not received the full attention it deserves so far. 


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■ The Council should continue to monitor progress with the performance against planned objectives on a monthly basis to improve on the actual 
achievements based on adequate supporting documentation. In addition, there must be timeous submission of the information by the various departments 
within the municipality. 

■ Management must closely monitor compliance with Laws and Regulations throughout the year. 

On behalf of the Audit Committee 


(Chairperson) 


MM LANGA 


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5.4 MAYORAL PROGRAMME OF ACTION PHASE ONE (1) MSINGA MUNICIPALITY: AUGUST 2018 - APRIL 2019 


DATE 

WARD 

VENUE 

ACTIVITY/ FUNCTION TO BE CONDUCTED 

27/09/2018 

01 

Mpondweni Hall 

Handover of Douglas taxi rank and Mkhuzeni community halls, Delivery of 2018/2019 Budget and IDP. Turning of sod for 
Ntanyezulu community hall, Mpompolwane creche and two roomed houses (Bhengu family). 

04/10/2018 

02 

Bhaza Hall 

Handover of Bhaza & Gobho community halls, Mzweni P2 electrification, Delivery of 2018/2019 Budget and IDP. Turning of 
sod for Mzweni 

electrification, Renovation of Mthintandaba school & construction two roomed houses (3 families) 

18/10/2018 

03 

Mkhamo Hall 

Handover of Siqhingini and Dlenyane community halls, Delivery of 2018/2019 Budget and IDP. Launch of new projects. 

Turning of sod for construction of 2 classrooms at Swebane school & Swebane creche 

01/11/2018 

04 

Sampofu (Zondo Store) 

Handover of Nkandla community hall, two roomed houses (3 families) Delivery of 2018/2019 Budget and IDP. Turning of sod 
for construction of Ezibomvini hall and two roomed houses (3 families) 

5/11/2018 

05 

Mhlakothi school 

Handover of Machobeni and Osuthu community hall, Delivery of 2018/2019 Budget and IDP. Turning of sod for construction 
of Mbabane hall 

22/11/2018 

06 

Mashunka Flagship 

Handover of Makhuphula community hall, Mashunka Taxi Rank and Delivery 

of 2018/2019 Budget and IDP. Turning of sod for construction of Mathengwenya hall and 2 classrooms at Buhayika school. 

06/12/2018 

07 

Ezihlabeni school 

Handover of Nondela and Mshafuthi community halls, Delivery of 2018/2019 Budget and IDP. Turning of sod for construction 
of Ezihlabeni & Jojingwenya halls. 

20/12/2018 

17 

Pomeroy sport field 

Maskandi competition by all wards 

27/12/2018 

04 

Ebhubesini hall 

Isicathamiya competition by all wards 


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DATE 

WARD 

VENUE 

ACTIVITY/ FUNCTION TO BE CONDUCTED 

17/01/2019 

08 

Ntanyana hall 

Flandover of Nokopela and Mkhuphula community halls, Delivery of 2018/2019 Budget and IDP. Turning of sod for 
construction of Bhodlendlini hall & Mdletshe creche. 

24/01/2019 

09 

Mhlumba school 

Flandover of Mapheka halls, Delivery of 2018/2019 Budget and IDP. Turning of sod for Mxheleni road, construction of 
Ezintandaneni & Gujini creches and renovation of Somveli hall. 

07/02/2019 

10 

Fabeni sport field 

Flandover of Mqumbukazi and Nogawu halls, Delivery of 2018/2019 Budget and IDP. Turning of sod for construction of 
Dungamanzi & Ndondwane halls 

21/02/2019 

11 

Esiphongweni hall 

Flandover of Savutshana and Mbonje community halls, Delivery of 2018/2019 Budget and IDP Turning of sod for construction 
of Othulinilwezulu hall (steel hall). 

07/03/2019 

12 

Alva primary 

Flandover of two roomed houses for Mngoma and Gwala families, Winnie Mabaso creche, Delivery of 2018/2019 Budget and 
IDP. Turning of sod for construction of Ntombikayise hall (steel hall) and classrooms at Alva school 

14/03/2019 

13 

Kubuyakwezwe 

school 

Flandover of Esinqumeni & Simanyama halls and Esidumbeni road, Delivery of 2018/2019 Budget and IDP. Turning of sod for 
construction of Makhandeni & Mkhuphula halls. 

28/03/2019 

14 

Mpophoma creche 

Flandover of Gqohi and Nyandu community halls, Delivery of 2018/2019 Budget and IDP. Turning of sod for Tiba, Sovivi & 
Dutsheni roads, construction of Dayiswayo creche and Mpophoma hall. 

04/04/2019 

15 

Mafusini hall 

Flandover of Othame, Nkuluka halls, Chachacha/ Ntshamane road, Delivery of 2018/2019 Budget and IDP. Turning of sod for 
construction of Nocomboshe hall, two roomed houses (Ngubane & Buyelaphi families). 

11/04/2019 

16 

Bunyebethu school 

Flandover of six toilets for community halls, fencing of Nkomisuthi & Hlahlakazi fields, Delivery of 2018/2019 Budget and IDP 
Turning of sod for construction of Mabedlana hall, fencing of Mngeni, Ngubukazi & Gqohi fields two roomed house and 
renovation of Swelihle creche. 

18/04/2019 

17 

Nkosinathi hall 

Flandover of Simangaliso and Nkosinathi community halls, Msalvana access road, Delivery of 2018/2019 Budget and IDP. 
Turning of sod for construction of Sifisamandla creche, Thulamnyaba hall and Zamokuhle classroom. 


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DATE 

WARD 

VENUE 

ACTIVITY/ FUNCTION TO BE CONDUCTED 

25/04/2019 

18 

Qiniso school 

Handover of two classrooms at Lelele and Ntabampisi schools, Delivery of 

2018/2019 Budget and IDP. Turning of sod for two roomed houses (Qwabe & Khoza families) 


LIST OF ANNEXURES 

a) ANNUAL PERFORMANCE REPORT & SCM ASSESSMENT OF SERVICE PROVIDERS 

b) ORGANOGRAM 

c) ANNUAL FINANCIAL STATEMENTS 

d) SCHEDULE SITTINGS OF COUNCIL, EXECUTIVE AND SUB-COMMITTEES 

e) AUDIT GENERAL REPORT 


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