1. Report to the Select Committee on the activities of the LGWSETA for the period 1 April 2002 – 28 February 2003 MR VUSI MAGAGULA CHAIRPERSON LGWSETA 19 th March 2003

2. INTRODUCTION In this the third year of operation of the Local Government Water and Related Services Sector Education and Training Authority (LGWSETA) the emphasis was on delivery

3. Copyright LGWSETA3 LGWSETA GOVERNANCE STRUCTURELGWSETA AUTHORITY (BOARD) AUDIT COMMITTEE NATIONAL GOVERNMENT DEPARTMENTS: EMPLOYERS  SALGA  SAAWU TRADE UNIONS: ORGANISED LABOUR  IMATU  SAMWU WATER CHAMBER EXECUTIVE COMMITTEE SKILLS PLANNING COMMITTEE ETQA COMMITTEE FINANCE COMMITTEE 8X SUB SECTORTASK TEAMS LEARNERSHIP COMMITTE 9 x PROVINCIAL COMMITTEES

4. Copyright LGWSETA4 TASK TEAMS COORDINATORS X 5 2 x Secretaries SMME Officer AUDIT COMMITTEE FINANCE MANAGER FINANCE OFFICER 1 x FINANCE ASSISTANT 1 x FINANCE ASSISTANT NSF PROJECT CONTROLLER EXECUTIVE COMMITTEE CHIEF EXECUTIVE OFFICER CEOs SECRETARY ADMIN & COMMUNICATIONS MANAGER ETQA MANAGERSKILLS PLANNING MANAGER WATER CHAMBER MANAGER WATER CHAMBER LEARNERSHIP MANAGER GOVERNING BODY SETA (AUTHORITY) IT OFFICER 2 x GENERAL WORKERS COMMUNICATION & INFO OFFICER SECRETARY RESEARCH/POLICY OFFICER SECRETARY RESEARCH/POLICY OFFICER SECRETARY RESEARCH/POLICY OFFICER SECRETARY NEW EXISTING W.Cape - 2 - PROVINCIAL MANAGER/ASST. KZN - 2 PROVINCIAL MANAGER /ADMIN POLICY COMMITTEE POLICY COMMITTEE POLICY COMMITTEE Admin. Asst Print Room Admin. Asst Resources Room RECEPTIONIST CONTRACTS ORGANISATIONAL STRUCTURE

5. Copyright LGWSETA5 LGWSETA Sector Skills Plan (SSP) Levy Collection & Disbursements Learnerships & Skills Programs SETA Functions Reporting & Monitoring Marketing & Communication ETQA Accreditation & Quality Assurance

6. Copyright LGWSETA6 SCOPE OF COVERAGE Public Water enterprises Irrigation Boards Private Water Companies Public and Private Waste Water Companies All Municipalities(Category A,B& C) Organized Local Government Waste management companies

7. Copyright LGWSETA7 Work concentrated on the following sub-sectors, which were previously listed as matter of priority by the LGWSETA: Finance and Public Administration Water Sanitation Environment &Waste Management Public Safety Primary Health Community Services LED and IDP Councillor Development Urban Planning

8. Copyright LGWSETA8 GOVERNANCE The Authority met once during the period under the EXCO of the Authority met five times in all the following is the structure of LGWSETA: GOVERNANCE STRUCTURENUMBER OF MEETINGS Authority1 (one) Executive Committee5 (five) Water Chamber3 (three) Provincial Co-ordinating CommitteesEach Provincial Committee met at least twice Policy Committees · ETQA · Learnership · Skills Planning · Audit Committee · HR Committee · Tender Committee 3 (three) 1 (one) 2 (two) 1 (one)

9. Copyright LGWSETA9 GOVERNANCE Operations and Systems Delegation of authority -CEO -Managers -Emergency Committee *Recruitment of the CEO

10. Copyright LGWSETA10 POLICIES HR policies Disciplinary procedures Procurement policies Financial Policies ETQA Policies Learnership Incentives

11. Copyright LGWSETA11 Focus of the Sector Skills Plan Sector Profile Demand for SkillsSupply of Skills Sector Needs Strategic Plan

12. Copyright LGWSETA12 A summary of the research results of the SSP review process illustrated below in charts:

13. Copyright LGWSETA13 Summary charts cont//…

14. Copyright LGWSETA14 Summary charts cont//…

15. Copyright LGWSETA15 Summary charts cont//…

16. Copyright LGWSETA16 Synopsis of the compliance level in the submission of WSP’s:

17. Copyright LGWSETA17 Synopsis cont//…

18. Copyright LGWSETA18

19. Copyright LGWSETA19 SDFs REGISTERED FOR YEAR 3 PROVINCELOCAL MUNICIPALITYDISTRICTMETRO EASTERN CAPE1141 FREE STATE1440 GAUTENG521 KZN2231 LIMPOPO510 MPUMALANGA1110 NORTHERN CAPE1310 NORTH WEST1120 WESTERN CAPE2151 TOTAL113234

20. Copyright LGWSETA20 WSPs SUBMITTED FOR YEAR 3 PROVINCELOCAL MUNICIPALITYDISTRICTMETRO EASTERN CAPE511 FREE STATE1710 GAUTENG402 KWAZULU-NATAL2651 LIMPOPO410 MPUMALANGA700 NORTHERN CAPE1140 NORTH WEST900 WESTERN CAPE1941 TOTAL102165

21. Copyright LGWSETA21 FINANCE Finance Report on Levy Income and Grant Disbursement 80% OF EMPLOYER LEVIES RECEIVED BY LGWSETA YEAR ONEYEAR TWOYEAR THREE Period 1 April 2000 to 31 March 2001 Period 1 April 2001 to 31 31 March 2002 Period 1 April 2002 to 31 31 December 2002 Total Levy received by the LGWSETA (80%) R52 990 010.00 R97 898 753.99R83 373 281.69 Admin Income (Including V.A.T) R19 730 550.00 R13 502 432.92R10 417 177.58 Unappropriated Funds R73 622.00 R6 100 557.1R10 193 076.89 Mandatory Grants Fund R33 185 838.00 R78 295 763.95R62 763 027.22

22. Copyright LGWSETA22 Skills Development Levy Paid by Employers and Grants Disbursed The following tables and graphs by the province the 100% Skills Development Levy paid by employers and Grants disbursed: Year One EASTERN CAPE4 493 955.912 118 017.29 FREE STATE3 371 608.3891 671.97 WESTERN CAPE11 902 967.995 318 631.88 NORTHERN CAPE1 330 614.30496 691.38 NORTH WEST2 134 272.66681 118.97 MPUMALANGA2 032 105.48675 095.76 LIMPOPO1 528 755.10425 520.07 KWA ZULU NATAL11 887 617.034 954 928.11 GAUTENG25 331 848.6110 496 634.85 TOTAL64 013 745.4626 081 310.28 Levies Paid by Employers 100% Province Total Grants disbursed

23. Copyright LGWSETA23 Year One Cont//…

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25. Copyright LGWSETA25 Year Two EASTERN CAPE1 859 911.125 146 566.71 FREE STATE7 287 472.272 569 905.61 WESTERN CAPE23 838 735.2314 287 743.92 NORTHERN CAPE2 897 788.141 366 778.09 NORTH WEST3 921 187.971 695 372.31 MPUMALANGA5 410 052.281 435 867.33 LIMPOPO3 540 516.80774 100.41 KWA-ZULU NATAL12 068 660.5312 942 417.89 GAUTENG42 803 932.5924 017 594.32 TOTAL 113 628 256.9364 236 346.59 Province Levies Paid by EmployersTotal Grants Disbursed

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28. Copyright LGWSETA28 Year Three Applications for Planning Grants for Year Three have been submitted and are currently being evaluated. It is envisaged that approximately 75% (fifteen per cent of the one per cent levy paid) of the amount received for planning grants will be disbursed by 31 March 2003. The Skills Development Levy (100%) paid by employers is for the period 1 April 2002 to 30 September 2002. The grants disbursed reflect all grants disbursed as at 28 February 2003. Due to the upgrade of the SDGDIS system the split of levies paid by employers by province as at the 31 December 2002 was not accessible on the SDGDIS system. Therefore the levies paid is as at the 30 September 2002

29. Copyright LGWSETA29 EASTERN CAPE4 625 241.26 FREE STATE2 968 051.40 WESTERN CAPE10 514 860.43 NORTHERN CAPE1 191 229.21 NORTH WEST1 506 708.48 MPUMALANGA2 429 509.73 LIMPOPO1 453 214.08 KWA-ZULU NATAL11 021 518.04 GAUTENG18 587 947.18 TOTAL54 298 279.81 PAYMENTS BY PROVINCEPERIOD 1 st APRIL2002 to 31 ST SEPTEMBER 2002 Province Levies Paid Employers

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31. Copyright LGWSETA31 Discretionary Funds Discretionary Funds committed to learnership development have been paid to the following: SERVICE PROVIDERPROJECTCOMMITTED AMOUNT PAID TO DATE Mvula TrustWater Learnership2 400 000.00489 100.00 NCWSTICommunity, Water and Sanitation Skills Programme 1 800 000.00206 010.00 SALGACouncillor Development4 465 000.00First payment due 31/03/ 2003 Peninsula TechnikonTen skills programmes and 3 sanitation learnerships 3 090 000.00First payment due 31/03/ 2003 Institute of Waste Management 3 Learnerships for the waste management sector 4 Learnerships for the water sector 3 Learnerships for the sanitation sector 10 Skills programmes for the sanitation sector 3 Learnerships for waste management sector 2 345 750.00First payment due 31/03/ 2003 Joint Eastern Cape CollegesDevelopment of learning materials Municipal Finance Learnership 524 000.00First payment due 31/03/2003 TOTAL14 624 750.00695 110.00

32. Copyright LGWSETA32 LEARNERSHIPS The learnership function is fully operational and the development process is managed through the task team model. The need to make a strategic intervention arose due to slow delivery of SGBs in delivering both unit standards and qualifications timely to enable the SETA to fulfil its functions. To this end the LGWSETA developed an SGB support programme and an agreement with SAQA has been signed to implement this programme and an amount of R2 417 000.00 has been committed to this process over a period of 18-months starting October 2002 to April 2004.

33. Copyright LGWSETA33 This table illustration of all SGBs that have been identified for support: Category A Level of Intervention Category B Level of Intervention Category C Level of Intervention Emergency fire and rescue Support and Coordination Electricity Support and Part coordination Public AdminSupport Traffic & Law Enforcement Support and Coordination Occupational Health and Safety Support and Part coordination LibrariesSupport Visible Policing Support and Coordination Primary Health SupportEnvironment Coordination and support Water Support and Coordination Support ConstructionSupport Finance Support and Coordination Waste Management Support and Coordination Tourism and Recreation Support LED Support and Coordination Councillor Development Support and Coordination

34. Copyright LGWSETA34 LEARNERSHIP DEVELOPMENT AND IMPLIMENTATION ROLL OUT LEARNERSHIP TITLENQF LEVEL SUB SECTOR BENEFICIARY GROUP IMPLEMENTATION STATUS REGISTRATION STATUS Waste Water process operatorNQF2Water60% employed 40% unemployed Full development of Learning materials Submitted to DoL Water Purification Process Operator NQF2Water60% employed 40% unemployed Full development of learning materials Submitted to DoL Water Reticulation Services (Water Service Hand) NQF2Water60% employed 40% unemployed Full development of learning materials Submitted to DoL Water Reticulation Services (Water Service Hand) NQF4Water60% employed 40% unemployed Full development of learning materials Submitted to DoL

35. Copyright LGWSETA35 CURRENT SKILLS PROGRAMMES COMMENCED BASED ON THE COMMUNITY WATER AND SANITATION WORKER LEARNERSHIP Supply network assistantNQF2WaterUnemployed youth (rural) x 20 Learning provision in progress Registered Network planning and design assistant NQF2WaterUnemployed youth (rural) x 20 Learning provision in progress Registered Waste water treatment assistant plant operator NQF2WaterUnemployed youth (rural) x 20 Learning provision in progress Registered Community water supply systems civil maintenance assistant NQF2WaterUnemployed youth (rural) x 20 Learner selection in progress Registered Sanitation systems mechanical maintenance assistant NQF2WaterLearner selection in progress Registered Basic certificate in municipal finance NQF5Municipal finance 118 learners identified Development of learning material Registered Intermediary certificate in municipal finance NQF6Municipal finance Pilot sites identifiedQualification re- scoping Registered Advanced certificate in municipal finance NQF7Municipal finance Pilot sites identifiedQualification re- scoping Registered

36. Copyright LGWSETA36 SCOPE OF THE WATER CHAMBER 169 registered employers in water utilities, sanitation and waste management (total includes some domestic and industrial cleaning companies misallocated by SARS to LGWSETA instead of to Services SETA [approximately 25]) Estimate of 14 000 employees (excluding DWAF) Of the 169 registered employers – 131 are paying levies The top 5 levy paying employers contribute approximately 70% of the Chamber’s levy income Average levy income p.a. = R8,6 million Of the 131 levy payers only 21 have submitted WSPs for 2002/2003

37. Copyright LGWSETA37 EXECUTIVE REPORT ON THE WATER SECTOR LEARNERSHIPS(ACHIEVEMENTS) The LGWSETA water, waste and sanitation task team (WWSTT). has identified ten (10)learnerships in the last 12 months and subsequently the SGB (Standard Generating Body) was initiated by the LGWSETA with the participation of all the critical stakeholders in the formulation of qualifications that are relevant to the identified learnerships: 4 in the Water Sector 3 in the Sanitation Sector 3 in the Waste Management Sector Six new qualifications in water services registered

38. Copyright LGWSETA38 WATER SECTOR LEARNERSHIPS (cont.) Mvula Trust has been contracted to project manage the full development of the first round of the four technical learnerships namely: 1.Water Purification Process Operator (NQF 2) 2.Waste Water Process Operator (NQF 2) 3.Water Reticulation (Water Service Hand) NQF 2 4.Water Reticulation (Water Service Hand) NQF 4 Completion of the first draft of the practical learnership implementation manual. Preparation of the Learner Information Pack.

39. Copyright LGWSETA39 WATER SECTOR LEARNERSHIPS (cont.) Selection of the workplace providers. So far about 20 positive responses have been received. Full development of training materials. 110 Assessors in the water sector are trained. Identification of Training Providers. At least 5 verifiers will be trained. 400 Learners selected by June 2003 Have set up the Project Steering Committee for this 8-month project

40. Copyright LGWSETA40 WATER SECTOR LEARNERSHIPS (cont.) STILL TO COME The second phase of the water sector learnership will consist of: three sanitation learnerships three waste management learnerships which will be developed in the next eight months. The following will be the outcome of round two learnerships.

41. Copyright LGWSETA41 WATER SECTOR LEARNERSHIPS (cont.) SANITATION 300 learners enrolled in three sanitation learnerships,100 of which will be from the unemployed young people under the age of 30 years. 1000 learners enrolled in ten Employable Skills Units (ESUs). Three sanitation qualifications registered with SAQA Three sanitation learnerships registered with DoL. Ten ESUs registered. Staff of at least five SMMEs will have received structured training.

42. Copyright LGWSETA42 WATER SECTOR LEARNERSHIPS (cont.) WASTE MANAGEMENT 300 learners enrolled in three waste management learnerships, 60 of which will be from the unemployed young people under the age of 30 year Three waste management qualifications registered with SAQA. Three waste management learnerships registered with DoL. Staff of at least five SMMEs will have received structured training.

43. Copyright LGWSETA43 COUNCILLOR TRAINING The LGWSETA is responsible for coordinating the evaluation of training material presented to 6 500 councillors for municipal finance training. 1800 have successfully completed all the 5modules The LGWSETA is also responsible for aligning it with the requirements of the National Qualifications Framework (NQF) to ensure that it is outcomes based. The modules presented were as follows:

44. Copyright LGWSETA44 MODULE TOPIC 123456123456 Budgeting and Finance Sources of operating and revenues and capital budget Financial reporting Roles and functions of municipal councillors on financial management Accounting Principles (GAMAP) Is under development in budget reform This programme was co-ordinated by DPLG and funded by the European Union. The LGWSETA will be committing more resources in terms of the development of an outcomes-based curriculum for councillor development. The LGWSETA is responsible for co-cordinating the evaluation of training material presented to 6 500 councillors for municipal finance training. The LGWSETA is also responsible for aligning it with the requirements of the National Qualifications Framework (NQF) to ensure that it is outcomes based. The modules presented were as follows: COUNCILLOR TRAINING

45. Copyright LGWSETA45 CHALLENGES Effective communications to stakeholders Effective funding of SETA projects Understanding of Sector Clients needs Acceleration of delivery of learnerships

46. Copyright LGWSETA46 Conclusion ‘ Our Strategy is to develop integrated plans for a Knowledge Sharing, capacity building and leadership development, that will enable the systematic sharing of knowledge, best practice and lessons learned between local governments and between spheres of government in order to accelerate the local government transformation process’ ‘To move away from talk & Chalk approaches by creating a real learning environment, that can deliver models of best practice municipal learning

47. Copyright LGWSETA47 Our sincerest Gratitude to The Chairperson Honorable Members of the committee All relevant stakeholders/constituencies in Local Got for their support. I THANK YOU. Sidwell Mofokeng 011 456 –8579 0823236526 E:mail SidwellM@lgwseta.co.za