1. KOUKAMMA MUNICIPALITY INTERVENTION STATUS REPORT PRESENTED TO SELECT COMMITTEE 19 OCTOBER 2010 PARLIAMENT – CAPE TOWN

2. TABLE OF CONTENT 1. Principles and terms of reference 2.The need for an intervention 3.The goals of the intervention 4.The achievements of the intervention 5.The remaining challenges 10/13/2015 2

3. PRINCIPLES  The intervention should facilitate the restoration of an environment conducive to proper administration, rule of law and effective service delivery  The intervention must accomplish its objectives in the shortest possible time  Post intervention support will be carried out by the Department and the relevant District Municipal

4. TERMS OF REFERENCE  Ensure internal audit and financial recovery plans  Review and improve Council structures  Ensure turnaround strategies for financial management, service delivery, revenue management, asset management and expenditure

5. TERMS OF REFERENCE  Facilitate and monitor disciplinary hearings for suspended managers  Facilitate appointment of section 57 managers  Coordinate and manage project specialists  Ensure full legal compliance  Prepare an appropriate environment for forensic investigation  Identify all irregular, wasteful and unauthorized expenditure  Ensure risk management and anti fraud/corruption plans 2015/10/13 5

6. THE NEED FOR THE INTERVENTION  The Koukamma Local Municipality had experienced severe performance deficiencies over a long period of time. The  most severe consequences of these deficiencies were:  5 consecutive years of disclaimers by the AG  Ongoing failures to meet financial reporting deadlines  Inaccurate billings for services  A lack of legal compliance

7. THE NEED FOR THE INTERVENTION  Poor infrastructure maintenance  A lack of development  Compromised service delivery  Undisciplined staff and low morale among employees  A refusal by the community to pay for services

8. KEY FOCUS AREAS The Koukamma intervention focused on 4 key areas:  Governance and Public Participation  Financial Reporting and Billing Management  Corporate Services/Human Resources Management  Technical and Development Service 2015/10/13 8

9. KEY GOALS: GOVERNANCE AND PUBLIC PARTICIPATION  Establish guidelines for Council and rules of order  Establish internal audit function  Address recommendations of the SIU  Improve communication with community  Manage staff and counselor debt 2015/10/13 9

10. KEY GOALS: FINANCIAL REPORTING AND BILLING SYSTEM  Adjustment budget approved on 25/3/10  Draft IDP and budget 2010-11 approved on 31/3/10 as per treasury regulations  IDP, Budget and SDBIP consolidated and approved by Council on 31 may 2010  Tariffs reviewed to take into consideration cost of service provision  Cost cutting measures in place, e.g. Telephone and 3G cards, travelling and fleet management

11. KEY GOALS: TECHNICAL AND DEVELOPMENT SERVICES  Develop systems and procedures for technical projects  Establish records management systems  Develop IT infrastructure  Development of indigent register  Install PMU section  Review LED strategy  Review IDP strategy  Review disaster management, including water shortages/drought

12. KEY GOALS: TECHNICAL AND DEVELOPMENT SERVICES  Obtain funding for water and sanitation related issues  Install and repair water meters  Manage MIG

13. ACHIEVEMENTS: GOVERNANCE AND PUBLIC PARTICIPATION  Council guidelines and rules of order have been developed and approved by Council  The lax attitude towards corporate governance processes and the lack of organizational leadership have been addressed  An internal audit function has been established and staff recruited  All of the recommendations of the SIU have been implemented  Steps have been taken to improve communication with community with the establishment of the stakeholder forum  Plans have been implemented to manage staff and counselor debt

14. ACHIEVEMENTS: FINANCIAL REPORTING AND BILLING MANAGEMENT  Annual financial reports for 2008/2009 were compiled and the AG has started the audit  The process of compiling the annual financial reports for 2009/2010 has begun  New financial record keeping systems have been introduced using clean data  Improved supply chain management policy and system have been achieved with the review if the SCM Policy and structures.  AG audit queries are being addressed and Operation Clean Audit is supporting ongoing improvements.

15. ACHIEVEMENTS: CORPORATE SERVICES AND HRM  The 2010/2011 budget has been approved  A revenue management and enhancement strategy has been developed; a Debt Collection Policy has been adopted and promulgated. 4 730 debtors who owe the Municipality a total of R 47 416 683.14 have been contacted.  An Asset Register has been developed and a draft fraud prevention plan is in place  Various cost cutting measures have been approved and implemented. 2015/10/13 15

16. ACHIEVEMENTS: CORPORATE SERVICES AND HRM  The new draft organ gram was approved by Council and was costed. The new positions will be advertised and interviews completed.  Appointments of new Municipal Manager and other section 57 managers finalized  A Performance Management System has been initiated.  Performance management contracts for Section 57 Managers have been drafted  Disciplinary matters for the MM and other managers have been finalized.

17. ACHIEVEMENTS: CORPORATE SERVICES AND HRM  Change management and organizational climate improvement workshops were held to improve staff morale and discipline  A consultant has been identified who will:  Review HR and payroll administration  Prepare employment contracts for employees  Establish records management systems

18. ACHIEVEMENTS: TECHNICAL AND DEVELOPMENT SERVICES  Systems and procedures were developed to improve implementation and monitoring of technical projects as well as records and grant management  An indigent register was developed with registration of 1950 beneficiaries  The DLTC was reopened  An IDP process plan has been developed, a process plan and a community-based representative forum established  Disaster management plans were reviewed and updated  Funding of R 177 million was obtained for water and sanitation related issues is nearing completion with various viable projects on the ground  Water meters are have been installed in various areas and are assisting with the accurate billing for services

19. THE REMAINING CHALLENGES  The discipline of staff is not yet at a satisfactory level for ongoing achievement of organizational goals  The skills levels of employees is very low and suitable training and development plans need to be developed  The maintenance and development of infrastructure, especially water infrastructure is still below standard, largely because staff are not sufficiently skilled in water quality management.  There is a lack of water resources in the area due to a long term drought and government intervention is required.

20. THE REMAINING CHALLENGES  There has been political interference in the work of the Municipality. Local politicians should strive for a better balance between their oversight role and interference.  The culture of non-payment for services by the community has not been completely overcome and needs more attention  The new administration of the Municipality requires support from the Provincial Department of Local Government

21. THANK YOU

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