P ORTFOLIO C OMMITTEE ON P UBLIC S ERVICE & A DMINISTRATION 14 AUGUST 2015 INPUT BY:EMENDO INC Town & Regional Planners 404 Anderson Street Menlo Park Pretoria (012)

1.EMENDO INC Emendo Inc specialised in Town and Regional Planning and Project Management which provide a service to National Government, Provincial Government, Local Government, Parastatals and the Private Sector. Service Include: Project Management for the design and construction of housing developments and infrastructure projects; Design of Townships (BNG); Strategic Planning (IDP and Spatial Development Framework); Special Projects (policy, land audits, others). Emendo Inc was established in 1996 and is a Level 2 BBBEE. Offices in Tshwane, Alberton, Dihlabeng and Polokwane with a full-time staff compliment of 19 persons

2.OBJECTIVE Purpose of this input: Indicate the outstanding debtors owned to Emendo Inc by Government Structures; Impact of outstanding debtors on operational activities; and Actions taken. 3.CURRENT DEBTORS The current debtors to Emendo Inc calculate to R which is summarized as follows:

GOVERNMENT STRUCTUREAMOUNT A.PROVINCIAL GOVERNMENT Gauteng Department of Human Settlement B.LOCAL GOVERNMENT (Gauteng) City of Johannesburg MM Emfuleni LM LOCAL GOVERNMENT (Free State) Maluti-a-Phofung LM Mangaung MM Nketoana LM Dihlabeng LM Ngwathe LM R ,33 R ,13 R67 615,68 R ,00 R ,00 R R ,00 R TOTALR ,39

NOTE: Since the written submission (20 May 2015) to the Portfolio Committee, an amount of R was received; All the work was completed to the satisfaction of the Client; The Emendo Inc turn-over to sustain itself from an operational perspective amount to ± R8m per annum. From the above it is evident that the outstanding debtors calculate to ± 1,3 times the Emendo Inc annual turnover – no company can survive the aforementioned impact; An substantial percentage (±60%) of the debtors need to be paid to sub-consultants.

4.IMPACT ON EMENDO INC OPERATIONAL ACTIVITIES Retrenchment of ± 6 persons during 2014; Reduction of Company assets; Overdraft facilities had to be re-negotiated with Financial Institutions; Threatening legal action from sub-consultants; Cannot provide work opportunities to young graduates. It was always one of Emendo’s objectives to provide work to graduates. 5.ACTION TAKEN Emendo is currently involved with an arbitration process against the COJ, which has cost Emendo in excess of R legal fees. We have tried to resolve the matter on a number of occasions without success. This process is not preferred by Emendo and would like to settle the matter outside arbitration. Arbitration date is set for 08/09/2015.

No legal action was taken by Emendo relations to other structures, owning to the following reasons:  Smaller Municipalities (Free State) have no funding available for payment. The allocated funding for the project was used for operational expenditure or to cover debts towards larger institutions (Water Authorities, Eskom, etc.);  High turn-over of staff. More than often Officials are replaced with new ones owing to resignations of restructuring. Newly appointed Officials do not have the background to the project and are reluctant to authorise payments. This scenario is prevalent in larger Municipalities and Provincial Departments.

 Emendo Inc established good relations with the respective Government Bodies and did not want to compromise it’s good standing by taking legal action.  Emendo Inc did not want to jeopardise it’s relationship in the awarding of future tenders. In cases where service providers follow legal processes against a Government Body, such company is often “over-looked” in the awarding of new tenders. 6.CONCLUSION From the above submission it is evident that Emendo Inc, which is classified as a small company is severely affected by the non- payment of Government Debtors. We, herewith appeal to the Portfolio Committee to assist in resolving the matter, as Town Planners and Project Managers is much needed in the South African built environment.

It was always been the approach of Emendo Inc to empower young black professional, hence the composition of Emendo Inc where 90% of all staff is from historically disadvantage backgrounds. The composition of Emendo Inc is also reflected in the ownership of Emendo Inc. THANK YOU EMENDO INC CONTACT DETAILS DIRECTORS Motsamai MofokengAndre Kotze Tshiamo Molema