1. 1 PRESENTATION TO NATIONAL ASSEMBLY’S PORTFOLIO COMMITTEE ON CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS MEC KENNY MMOIEMANG 06 SEPTEMBER 2012

2. OUTLINE OF PRESENTATION 1.Purpose of Presentation 2.Departmental Audit Outcomes 3.Overview of Municipalities 4.Status of Municipalities as per Portfolio Committee’s Focus Areas 5.Challenges 6.Conclusion 2

3. 1. PURPOSE OF PRESENTATION To share information on the state of governance in the 32 municipalities of the Northern Cape, with a special focus on the challenges and interventions towards achieving Clean Audits by 2014. As requested by the Portfolio Committee, the presentation will cover the following focus areas:- Governance, Financial Management, Service Delivery, Bulk Infrastructure, and Corruption. 3

4. 2.DEPARTMENTAL AUDIT OUTCOMES Over the last 3 years, Department of Cooperative Governance, Human Settlements and Traditional Affairs (COGHSTA) achieved the following audit outcomes : 2011/12 - Unqualified 2010/11 - Qualified Coghsta was qualified on Assets and Housing Grant due to Municipalities not following Supply Chain Management Processes 2009/10 - Unqualified 4

5. 2.DEPARTMENTAL AUDIT OUTCOMES COGHSTA’s interventions to facilitate a clean audit within the department for 2012/13 and going forward towards 2014, involves the following: 1.Implementing an Audit Improvement Plan 2.Jointly with AG, monitor the implementation of Coghsta’s Audit Improvement Plan 3.Implementing a Risk Management Plan 4.Jointly with AG, monitoring the effective implementation of COGHSTA’s Internal Controls 5.Full cooperation with the Auditor-General during the audit process 5

6. Northern Cape has 5 District Municipalities and 27 Local Municipalities categorised as follows: Category B1 Local Municipalities with large budgets and secondary cities Sol Plaatje (Kimberley) Category B2 Local Municipalities with a large town as a core //Khara Hais (Upington) Category B3 Local Municipalities with small towns, with relatively small population and significant proportion of urban population but with no large town as a core 24 other Local Municipalities i.e. Magareng, Phokwane, Dikgatlong, !Kheis, Kai! Garib, Kgatelopele, Tsantsabane, Mier, Ga-Segonyana, Gamagara, Emthanjeni, Kareeberg, Umsobomvu, Siyancuma, Thembelihle, Siyathemba, Ubuntu, Renosterberg, Nama Khoi, Richtersveld, Kamiesberg, Karoo Hoogland, Hantam and Khai-Ma 6 3. OVERVIEW OF NORTHERN CAPE MUNICIPALITIES

7. Northern Cape has 5 District Municipalities and 27 Local Municipalities categorised as follows: Category B4 Local Municipalities which are mainly rural with communal tenure and with, at most, one or two small towns in their area Joe Morolong Category C1 District Municipalities which are not water service authorities Francis Baard Pixley ka Seme Namakwa John Taolo Gaetsewe Siyanda 7 3. OVERVIEW OF NORTHERN CAPE MUNICIPALITIES

8. 4. MUNICIPALITIES IDENTIFIED FOR TARGETED SUPPORT 13 Local Municipalities are receiving targeted support from Northern Cape COGHSTA and National DCOG with Local Government Turn-Around Strategy (LGTAS),and 7 of these same municipalities are also receiving support from the Municipal Infrastructure Support Agency (MISA): 8 SiyathembaTsantsabaneMagareng (MISA) Gamagara (MISA) Richtersveld!KheisRenosterberg (MISA) Ga-Segonyana (MISA) KamiesbergKgatelopeleKhai-Ma (MISA)Joe Morolong (MISA) Mier (MISA) John Taolo Gaetsewe District Municipality identified by National Cabinet as one of the 23 Rural Districts requiring support

9. 5. STATUS OF MUNICIPALITIES AS PER PORTFOLIO COMMITTEE’S FOCUS AREAS 5.1 ENHANCING GOOD GOVERNANCE IGR STRUCTURES IN THE PROVINCE: District IGR Forums: Chaired by Executive Mayors of District Municipalities; Mayors of Local Municipalities part of the District IGR; SALGA Northern Cape, All Regional Directors of Provincial Sector Departments part of District IGRs (Quarterly Meeting): ALL 5 DISTRICTS HAVE FULLY FUNCTIONAL IGRs MUN-MEC: Chaired by MEC for Local Government; all Executive Mayors and Mayors and Chairperson of SALGA Northern Cape part of MUN-MEC; Mayors attend with Municipal Managers and CFOs; All provincial sector departments invited to MUN-MEC meetings (Quarterly Meeting) 9

10. Premier’s Inter-Governmental Forum: Chaired by Premier and MEC for Local Government as alternate Chair; All MECs, Chaiperson of SALGA in the Province, Executive Mayors and Mayors, Director General, Provincial HoDs, CEO of SALGA in the Province, Municipal Managers and All National Sector Departments in the Province attend (Quarterly meeting) 10

11. Public Participation: DistrictsCommunity Development Workers Frances Baard77 John Taolo Gaetsewe49 Namakwa46 Pixley ka Seme61 Siyanda TOTAL 48 281 11 COMMUNITY DEVELOPMENT WORKERS:

12. Challenges with CDWs Tension between CDWs and elected Ward Councillors as well as Ward Committees due to the fact that ‘some’ CDWs behave as if they are elected public representative, hence they compete with elected Councillors Department is in the process of finalising appointment of CDW supervisors per municipalities CDW Supervisors to be assisted by Municipal CDW Mentors 12

13. STATE OF WARD COMMITTEES A total number of 5 Ward Committees have not been established in the following municipalities: -Thembelihe Local Municipality : 2 wards - Karoo Hoogland Local Municipality : 2 wards - Kgatelopele Local Municipality : 1 ward Accredited training targeting 870 Ward Committee members was conducted in 12 municipalities funded by the European Union Training to other municipalities will follow soon Ward Committee members are being paid R1 000 p/m out of pocket expense 13

14. Ward Committees : MUNICIPALITY NO. OF WARDS FUNCTIONALITY OUT OF POCKET/POLICY Sol Plaatje Dikgatlong Magareng Phokwane 31 7 5 9 Functional Yes, National Guideline Gamagara Ga-Segonyana Joe Morolong 5 13 15 Functional Yes Review Process by Council Siyathemba Siyancuma Thembelihle Renosterberg Kareeberg Ubuntu Umsobomvu Emthanjeni 4644445746444457 Functional No Functional Yes No Yes 14

15. WARD COMMITTEES: MUNICIPALITY NO. OF WARDS FUNCTIONALITY OUT OF POCKET/POLICY NamaKhoi Kamiesberg Hantam Karoo Hoogland Khai-Ma Richtersveld 945444945444 Functional No Functional No Functional Yes – No policy No – No policy in place Yes – Policy in place Yes – No Policy Kgatelopele Tsantsabane //KharaHais Kai Garib Kheis Mier 4 6 14 9 4 No Functional No – No policy No – No Policy 15

16. DISTRICTSWARDSESTABLISHEDOUTSTANDING Frances Baard52 0 John Taolo Gaetsewe 33 0 Namakwa30282 Karoo Hoogland Pixley ka Seme38362 Thembelihle Siyanda41401 Kgatelopele WARD COMMITTEES – DISTRICT SUMMARY

17. Implementation of Municipal Turn Around Strategies All Northern Cape Municipalities have developed individual MTAS Municipal IDPs, Budgets and SDBIPs were integrated and adopted by all 32 municipalities Implementation of the IDP went hand-in-hand with ‘hands on support and Rapid Response’ support processes and leveraging of stakeholder support and reporting and monitoring; Municipalities report to District IGRs and MUN- MECs on the progress made regarding implementation of MTAS. 17

18. Section 139 Interventions: Since 1999 the Northern Cape Provincial Executive Council never invoked section 139 The approach adopted by the Provincial Government is to provide support to the municipalities in their respective challenges they are encountering 18

19. 5.2 FINANCIAL MANAGEMENT Municipal Public Accounts Committees [MPACs] 31 of the 32 municipalities in the province have established MPACs: Khai-Ma LM has not yet established MPAC as it consists of 7 Councillors, 4 of these Councillors serve as Chairpersons in other committees excluding the Mayor. MEC has advised the Municipality to discuss the possible shared MPAC with Namakwa District Municipality Although Karoo Hoogland LM has MPAC, it has not yet submitted Council Resolution to MEC The Association of Public Accounts Committees (APAC), together with its strategic partners: Auditor General South Africa (AGSA), National Treasury (NT), Department of Cooperative Governance (DCoG) and SALGA with the Provincial Legislature, conducted training for all MPAC members on 16 – 18 April 2012 and 24 - 26 April 2012 respectively 19

20. Municipal Public Accounts Committees [MPACs] NoMunicipalityMPACs Date MPAC established Membership composition Party affiliation of MPAC Chairperson 1Frances Baard DistrictYes3 October 20118ANC 2Sol PlaatjeYesJune 20116ANC 3DikgatlongYes11 November 20113ANC 4MagarengYes9 November 20114ANC 5PhokwaneYes28 November 20119ANC 6John Taolo Gaetsewe DistrictYes30 November 20116ANC 7Ga SegonyaneYes29 November 20119ANC 8GamagaraYes21 November 20115ANC 9Joe MorolongYes24 November 20118ANC 10EmthanjeniYes2 July 20113ANC 11Pixkey Ka Seme DistrictYes31 October 20116DA 12KareebergYes17 October 20113ANC 13SiyancumaYes10 February 20125ANC 14SiyathembaYes20 April 20123ANC 15RenosterbergYes20 April 20124DA 20

21. Municipal Public Accounts Committees NoMunicipalityMPACs Date MPAC established Membership composition Party affiliation of MPAC Chairperson 16ThembelihleYes16 February 20125COPE 17UbuntuYes30 March 20124ANC 18UmsobomvuYes20 June 20125COPE 19Namakwa DistrictYes24 November 113ANC 20HantamYes1 December 20113DA 21KamiesbergYes29 May 20124ANC 22Karoo HooglandNo Council Resolution 23Khai – MaNo 24Nama KhoiYes15 November 117DA 25RichtersveldYes1 November 114ANC 26Siyanda DistrictYes6 December 20119ANC 27Kai !GaribYes29 February 20125ANC 28Khara HaisYes12 February 20129ANC 29 !KheisYes28 November 115ANC 30KgatelopeleYes22 May 20123ANC 31MierYes23 January 20123ANC 32TsantsabaneYes17 October 115ANC 21

22. MUNICIPAL AUDIT OUTCOMES NoMunicipality2010/112009/102008/09 1DikgatlongDisclaimer 2Frances Baard DistrictQualified Financially unqualified with no matters 3MagarengDisclaimer 4PhokwaneDisclaimer 5Sol PlaatjieQualifiedDisclaimer 6Gamagara Financially unqualified with matters Qualified 7Ga – SegonyanaDisclaimer 8Joe MorolongDisclaimer 9 John Taolo Gaetsewe District Qualified Financially unqualified with matters 10HantamQualified Financially unqualified with matters Qualified 11KamiesbergDisclaimer 12Karoo HooglandQualified Disclaimer 13Khai – Ma Financially unqualified with matters 14Nama KhoiDisclaimer 15Namakwa DistrictFinancially unqualified with matters 22

23. MUNICIPAL AUDIT OUTCOMES NoMunicipality2010/112009/102008/09 16RichtersveldFinancially unqualified with matters 17EmthanjeniQualifiedDisclaimer 18KareebergFinancially unqualified with matters Financially unqualified with no matters 19 Pixley Ka Seme District Financially unqualified with mattersQualified 20RenosterbergAFS outstandingDisclaimer 21SiyancumaDisclaimer 22SiyathembaDisclaimer 23ThembelihleDisclaimer 24UbuntuDisclaimerQualifiedDisclaimer 25UmsobomvuDisclaimerQualifiedDisclaimer 26Kai! GaribAudit report outstandingDisclaimer 27KgatelopeleDisclaimerQualifiedDisclaimer 28Khara Haisnqualified with matters Qualified 29KheisDisclaimer 30MierDisclaimer 31Siyanda DistrictFinancially unqualified with mattersQualifiedDisclaimer 32TsantsabaneDisclaimer 23

24. SUMMARY : AUDIT OPINIONS Audit Opinion2010/112009/102008/09 Financially unqualified with no matters 012 Financially unqualified with other matters 874 Qualified 674 Disclaimer 161722 Adverse 000 Total reported on 3032 Audit report outstanding 200 Total number of municipalities 32 24

25. FUNCTIONALITY OF INTERNAL STRUCTURES Internal Audit -27 of the 32 municipalities have internal audit function in place; -25 audit reports were verified to assess the effectiveness of internal audits and it was noted that 14 internal audit did not comply to section 165 of MFMA while 11 complied; -7 audit reports of the following municipalities were not verified as they were not available at the time of completion of this report (Renosterberg, Siyancuma, Siyathemba, Kai !Garib, Kgatelopele, Mier, and Tsantsabane) 25

26. FUNCTIONALITY OF INTERNAL AUDIT NOMUNICIPALITY INTERNAL AUDIT FUNCTIONCOMMENTAUDIT FINDING 1Dikgatlong MunicipalityYESFB shared servicesYES 2Frances Baard DMYESFB shared servicesNO 3Magareng MunicipalityYESFB shared servicesYES 4Phokwane MunicipalityYESInternalYES 5Sol Plaatje MunicipalityYESInternalNO 6Gamagara MunicipalityYESJTG shared servicesYES 7Ga-Segonyana MunicipalityYESJTG shared servicesYES 8Joe Morolong MunicipalityYESJTG shared servicesYES 9John Toalo Gaetsewe DMYESJTG shared servicesYES 10Hantam MunicipalityYES Shared Services at Distict level was to commence on 01/07/2011 but the process has not been finalized NO 11Kamiesberg MunicipalityNO YES 12 Karoo Hoogland MunicipalityYESNO 13Khai-Ma MunicipalityYES 14Nama Khoi MunicipalityYESNO 15Namakwa DMNO YES 16Richtersveld MunicipalityNO YES 26

27. FUNCTIONALITY OF INTERNAL AUDIT NOMUNICIPALITYINTERNAL AUDIT FUNCTIONCOMMENTAUDIT FINDING 17Emthanjeni MunicipalityYESPixley shared servicesNO 18Kareeberg MunicipalityYESPixley shared servicesNO 19Pixley Ka Seme DMYESPixley shared servicesNO 20Renosterberg MunicipalityYESPixley shared services Audit report outstanding 21Siyancuma MunicipalityYESPixley shared services Audit report not verified 22Siyathemba MunicipalityYESPixley shared services Audit report not verified 23Thembelihle MunicipalityYESPixley shared servicesYES 24Ubuntu MunicipalityYESPixley shared servicesNO 25Umsobomvu MunicipalityYESPixley shared servicesNO 26Kai! Garib MunicipalityYESInternal Audit report outstanding 27Kgatelopele MunicipalityYESInternal Audit report not verified 28//Khara Hais MunicipalityYESInternalNO 29!Kheis MunicipalityNO YES 30Mier MunicipalityNO Audit report not verified 31Siyanda DMYESInternalYES 32Tsantsabane MunicipalityYESInternalAudit rep not verified 27

28. AUDIT COMMITTEES -27 of the 32 municipalities have audit committees in place -25 audit reports were verified to assess the effectiveness of audit committees and it was noted that 22 audit committees were not effective during 2010/11 financial year while only 3 were evaluated to be effective by Auditor General. -7 audit reports were not verified as they were not available at the time of completion of this report. 28

29. AUDIT COMMITTEES NoMunicipality Functionality of Audit CommitteesCommentAudit Finding 1Frances Baard DMYESFB shared servicesNO 2Dikgatlong MunicipalityYESFB shared servicesYES 3Magareng MunicipalityYESFB shared servicesYES 4Phokwane MunicipalityYESInternalYES 5Sol Plaatje MunicipalityYESInternalNO 6John Toalo Gaetsewe DMYESJTG shared servicesYES 7Ga-Segonyana MunicipalityYESJTG shared servicesYES 8Gamagara MunicipalityYESJTG shared servicesYES 9Joe Morolong MunicipalityYESJTG shared servicesYES 10Namakwa DMYES Shared Services at Distict level was to commence on 01/07/2011 but the process has not been finalized YES 11Richtersveld MunicipalityNO YES 12Nama Khoi MunicipalityYES 13Kamiesberg MunicipalityNO YES 14Hantam MunicipalityYES 15 Karoo Hoogland MunicipalityYES 16Khai-Ma MunicipalityYES 29

30. AUDIT COMMITTEES NOMUNICIPALITY AUDIT COMMITTEECOMMENTAUDIT FINDING 17Pixley Ka Seme DMYESPixley shared servicesYES 18Ubuntu MunicipalityYESPixley shared servicesYES 19Umsobomvu MunicipalityYESInternalYES 20Emthanjeni MunicipalityYESPixley shared servicesYES 21Kareeberg MunicipalityYESInternalNO 22Renosterberg MunicipalityYESInternalAudit report outstanding 23Siyathemba MunicipalityYESInternalAudit report not verified 24Thembelihle MunicipalityYESPixley shared servicesYES 25Siyancuma MunicipalityYESPixley shared servicesAudit report not verified 26Siyanda DMYESInternalYES 27Mier MunicipalityNO Audit report not verified 28//Khara Hais MunicipalityYESInternalYES 29!Kheis MunicipalityNO YES 30Tsantsabane MunicipalityYESInternalAudit report not verified 31Kgatelopele MunicipalityYESInternalAudit report not verified 32Kai! Garib MunicipalityNO Audit report outstanding 30

31. AMOUNT OF DEBT OWED TO MUNICIPALITIES BY GOVERNMENT DEPARTMENTS The information as at end of June 2012 as published on National Treasury website; Government departments owed municipalities in the Northern Cape R151 767 911 31

32. DEBT OWED TO MUNICIPALITIES Municipality Debtors Dikgatlong - Frances Baard District 962,204 Magareng 1,115,522 Phokwane 1,535,754 Sol Plaatjie 121,313,690 Gamagara - Ga - Segonyana 3,172,461 Joe Morolong - John Taolo Gaetsewe 250,372 Hantam 1,107,039 Kamiesberg - Karoo Hoogland 208,081 Khai – Ma 65,273 Nama Khoi 1,730,174 Namakwa District 2,352,770 Richtersveld 36,331 32

33. DEBT OWED TO MUNICIPALITIES Municipality Debtors Emthanjeni 1,518,373 Kareeberg 73,366 Pixley Ka Seme District - Renosterberg - Siyancuma 127,934 Siyathemba 638,453 Thembelihle 1,192,403 Ubuntu 705,656 Umsobomvu 532,118 Kai! Garib 675,844 Kgatelopele - Khara Hais 10,811,685 Kheis - Mier 1,642,408 Siyanda District - Tsantsabane - TOTAL 151,767,911 33

34. Interventions: Steps Taken to collect Monies: The Executive Council has instructed all Provincial Departments to pay municipalities outstanding monies owed to Municipalities. Municipal Managers and Provincial Heads of Departments are busy verifying amounts; Debt Collection Committee comprising of CoGHSTA and Provincial Treasury established to deal closely with municipalities to assist and support them to collect money which is due to them; Some municipalities are failing to implement their Credit Control and Debt Collection Policies despite being encouraged by the Department to do that; Credit control and debt collection Policies of municipalities are being monitored by the Department to ensure adequate implementation; 34

35. Compliance with Supply Chain Management Processes Most municipalities were qualified on non- compliance with Supply Chain Management processes; During the monitoring of Audit Action Plans, municipalities were advised on how to deal with SCM transactions to avoid irregular and unauthorised expenditures. Furthermore, Provincial Treasury: Supply Chain Management is providing hands on support to municipalities 35

36. 5.3 ACCELERATING SERVICE DELIVERY Status and Pace of Service Delivery in the Northern Cape 93,6%, which is 177,482 households have access basic level of water i.e. potable water. Access to Free Basic Water is 51 551 Households. All schools and clinics have access to water.; 79.9% which is 160 000 households have access to basic level of sanitation. Access to Free Basic Sanitation is 51,551 Households. All sanitation backlogs at schools and clinics have been eradicated. 77.6%, which is 91 232 households have access to basic level of refuse removal. 82,1%, which is 141 488 Households have access to electricity - of which 48 408 households receive Free Basic Electricity. 36

37. IDP Analysis Session The Northern Cape IDP Analysis took place on the 28 - 30 May 2012 and was meant to arrive at decisions on issues such as municipal budgets and institutional transformation in a consultative, systematic and strategic manner; 31 Municipalities submitted their draft IDPs, with the exception of Kamiesberg which did not submit as their draft IDP was not yet approved by council but attended and presented at the engagement/analysis session; A pre-analysis was conducted by the Provincial IDP Task Team members to give feedback to the municipalities on their draft IDPs. Municipalities were requested to complete the IDP template and prepare presentations on the 6 KPA’s highlighting their achievements, challenges, interventions and AG’s audit outcomes. Municipalities submitted their final adopted IDPs to the MEC on 30 June 2012 37

38. Some of the more common issues identified by local municipalities were : Support/attendance by provincial and national sector departments to the IDP Representative Forums and District IGR still a challenge; Most municipalities do not have the capacity – human and/or capital – to implement their IDPs; District municipalities (shared services) support to local municipalities is not effective; Districts and local Municipalities that will ensure that districts plans are aligned with local Municipal IDP’s to address services delivery challenges. Local municipalities will require more funding as most of the DMA areas fall under their jurisdiction. 38

39. IDPs 23 out of the 32 municipalities adopted their final IDPs by the end of May 2012 Of the 9 that did not approve before end of May 2012, 5 adopted theirs before end of June 2012 (end of the financial year), whilst 3 adopted theirs in the first month (July) of the new financial year and it is only Karoo Hoogland that did not adopt their IDP 39

40. MONITORING OF IDPS The Department coordinates the Provincial IDP Task Team which comprises of all Provincial and National Sector Departments and all important role-players Within the Departments itself, the Directorate of Planning and Development monitors implementation of IDPs: 5 Assistant Directors each allocated a District to monitor and report on monthly basis 40

41. 5.4 FACILITATING SUSTAINABLE INFRASTRUCTURE Availability and Functionality: Availability of funding for bulk services still remains a major challenge for the Municipalities in the Northern Cape due to them not generating enough funds to rehabilitate, upgrade renew or extend their existing water and waste water treatment plants and bulk water pipelines which at present are operating beyond their maximum capacity due to expansion of the towns Municipalities only apply for funding at National CoGTA through Municipal Infrastructure Grant programme (MIG) and Department of Water Affairs with the Regional Bulk Infrastructure Grant (RBIG) and the Accelerated Community Infrastructure Program (ACIP) 41

42. FACILITATING SUSTAINABLE INFRASTRUCTURE With regard to MIG, the annual allocations that they receive prove to insufficient as they are too small to fund the bulk services that are very expensive and in cases the Municipalities would have to commit their entire MTEF allocations over a number of years to be able to fund those projects 100%. The only other alternative is to apply to DWA for assistance through the RBIG and ACIP DWA has budgeted R30,5 million for ACIP projects in the 2011/2012 financial year and projects include 2 water and 3 waste water projects 33 projects have been prioritised for the RBIG programme with 11 capital and 10 planning projects being budgeted for the 2012/2013 financial year to the amount of R218,7 m. 42

43. FACILITATING SUSTAINABLE INFRASTRUCTURE MIG Funding Amount allocated to Northern Cape municipalities during 2009/10 = R335m Amount allocated to Northern Cape Municipalities during 2010/11 = R425m 43

44. WATER BACKLOGS PER DISTRICT: District Total House Holds Formal Below Basic Informal Below Basic TOTAL WATER NEEDS % of total needs Frances Baard Total83,2692221281150315.35% JTG Total56,1365650770642065.58% Namakwa Total27,95579541331.36% Pixley ka Seme Total35,4731146677817.98% Siyanda Total40,6382626909529.73% Grand Total243,471632734629789 44

45. SANITATION BACKLOGS PER DISTRICT: District Total House Holds Formal Below Basic Informal Below Basic TOTAL SANITATION NEEDS% of total needs Frances Baard Total83,2692,2864,7427,02819.82% JTG Total56,95518,43887019,30854.45% Namakwa Total27,955150692190.62% Pixley ka Seme Total35,4731,1322,4833,61510.19% Siyanda Total40,6383,1042,1855,28914.92% Grand Total243,47125,11010,34935,459 45

46. 5.5 FIGHTING CORRUPTION There has been no proclamations instituted by the Provincial Government; Department has assisted all Municipalities in developing Fraud Prevention Policies and is also monitoring implementation thereof; The following slides give details of cases of corruption and fraud which were reported to the Department 46

47. CORRUPTION CASES INVESTIGATED …. MUNICIPALITY CORRUPTION TYPE PREPETRATOR’S POSITION MONETARY VALUE STATUS OF INVESTIGATION OUTCOME FRAUD PREVENTION POLICY FRANCES BAARD DISTRICT Theft of petrolMessenger/ Driver+_ R4 000Finalized Dismissed Yes SOL PLAATJE 1.Invoice Corruption 1.Secretary+_ R 60 000 Commercial Branch of SAPS Investigate matter PendingYes 1.Issue false Learners Licences 1.Traffic Officer+_ R30 000 Commercial Branch of SAPS Investigate matter Case is currently proceeding in criminal Court 1.Invoice corruption General Worker+_ R 30 000 Departmental Investigated Outcome of disciplinary hearing awaited ( Pending) 1.EmbezzlementServices Station supervisor R 25 000Case was investigated by employer Disciplinary hearing not finalized 47

48. JOHN TAOLO GAETSEWE DISTRICT Fraud District Management Area- Administrative Officer Not known Criminal case with SAPS Employment contract of not renewed Yes GA-SE GONYANA LOCAL Fraud& Theft5 Chief Traffic Officers – Traffic Control It cannot be quantified as it continued over a period of time where bribes were obtained in favour of learners and drivers licenses’ Criminal case still on, at Magistrate Court. Internal disciplinary process over these traffic officers Dismissed but appealed case is at Bargaining Council (CCMA) Yes 48 CORRUPTION CASES ….

49. SIYATHEMBA Theft Traffic Department ClerkNot KnownSIU Not availableYes EMTHANJENITheft Creditor Control/ Clerk R427579.68 Regional Court Resigned & Sentenced Yes TheftClerkR1275-00 Disciplinary & Dismissed and resigned Corruption & Fraud Motor registration Clerk -CourtTransfer TheftCleanerR4129.00FinalizedSentenced

50. NAMAKWA DISTRICT 1.Sub Judicated CFOUnspecifiedSub Judicated Suspende d and resigned Criminal case still pending Yes 1.Sub- Judicated Head: RoadsUnspecifiedSub- Judicated Resigned, Criminal case still pending 1.Supply Chain Municipal Manager Un specifiedCompletedResigned, Criminal case still pending 1.TheftLabourer-CompletedDismissed 1.TheftLabourer-Pending RICHESTVELDTheft & Fraud CasherR22000.00FinalizedSettlement to resign and payback the stolen money Not signed Fraud/TheftDriverR355.20FinalizedFinal warning- Lack of evidence 50

51. NAMA KHOITheft of cash Perpetrator unknown. Incident occurred in March 2009 R60.000 Investigatio n by the financial department Case still open Yes Allegation fraud. Individual pricing and selling municipality movable assests to member of public without Council Resolution as required by section 14 of the MFMA Written complaint by two employees of the municipality HOD of finance & Acting Municipality Manager R8,400Outcome of investigation with supporting evidence were submitted by the Internal audi unit to the Municipaln Manager. Audit Committee and Council. The Audit committee recommeded that disciplinary action be taken against the senior managers in terms of the SCM Policy and section 171 & 173 of the MFMA 51

52. NAMA KHOITheft of cash Perpetrator unknown. Incident occurred in March 2009 R60.000 Investigation by the financial department Case still open Allegation fraud. Individual pricing and selling municipality movable assests to member of public without Council Resolution as required by section 14 of the MFMA Written complaint by two employees of the municipality HOD of finance & Acting Municipality Manager R8,400Outcome of investigation with supporting evidence were submitted by the Internal audi unit to the Municipaln Manager. Audit Committee and Council. The Audit committee recommeded that disciplinary action be taken against the senior managers in terms of the SCM Policy and section 171 & 173 of the MFMA Theft of fuel General worker in the Technical Department R60. 000Disciplinary hearing Employee not found guilty Fraud, Pricing and selling of municipal land to a member of the public without a council resolution and far below fair value as required by section 114(2)(a)&(b) of the MFMA HOD of Corporate Services & Acting Municipal Manager Estimated R1,200,000 Disciplinary hearing and subsequent dismissal by Council Arbitration cases still open 2010/2011Theft of electrical cable and switch gear of substations Member of the publicEstimated R4,000.000 Arrest was made. Criminal charges were laid. Case twice postponed in magistrate court Case still open 52

53. 6.CHALLENGES The issue of the vast topography occupied by the Province with highly scattered population brought about major challenges in dealing with local government matters; Northern Cape municipalities are struggling to recruit suitable senior management personnel to work in municipal spaces; Municipalities consistently experience brain drain because they are not attractive as areas to stay and work, they are not able to offer competitive remuneration to skilled personnel; 53

54. CHALLENGES: The equitable share given to municipalities is inadequate to deal with the challenges faced by municipalities; The Department is constantly deploying its own personnel to fill in vacancies as those of Municipal Managers in several municipalities; The department has limited capacity and budget to sustain interventions implemented in municipalities There are municipalities in the Province that are not viable and these require special attention 54

55. 7. CONCLUSION Spatial realities of the Province are constraining service delivery, human resource capacity, shared services and other matters Despite all the challenges, Department and Provincial Government will ensure that municipalities are given the necessary support to ensure good governance and financial viability and sustainability 55