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

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

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

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

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

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

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

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

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

KEY GOALS: FINANCIAL REPORTING AND BILLING SYSTEM  Adjustment budget approved on 25/3/10  Draft IDP and budget 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

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

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

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

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.

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 debtors who owe the Municipality a total of R 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

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.

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

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

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.

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

THANK YOU

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