ATC230424: Report of the Portfolio Committee on Cooperative Governance and Traditional Affairs on Oversight Visit to Sol Plaatje and Phokwane Local Municipalities 28 March – 01 April 2023, Dated 21 April 2023

Cooperative Governance and Traditional Affairs

Report of the Portfolio Committee on Cooperative Governance and Traditional Affairs on Oversight Visit to Sol Plaatje and Phokwane Local Municipalities 28 March – 01 April 2023, Dated 21 April 2023

Having conducted an oversight visit to the Sol Plaatje and Phokwane Local Municipalities under the Frances Baard District in the Northern Cape, from 28 March to 01 April 2023, the Portfolio Committee on Cooperative Governance and Traditional Affairs reports as follows:

Delegation:

NAME	POLITICAL PARTY
Hon F.D. Xasa (Chairperson) Hon D. Direko Hon X. Msimango Hon G.G. Mpumza Hon B. Hadebe Hon P. Xaba-Ntshaba	African National Congress
Hon E. Spies Hon G. Opperman	Democratic Alliance
Hon H. Mkhaliphi Hon Shadrak Tlaule (Provincial Legislature Member)	Economic Freedom Fighters

Support Staff:

NAME	DESIGNATION
Ms. Shereen Cassiem	Committee Secretary
Mr. M Dumezweni	Committee Assistant
Mr. Andile Sokomani	Content Advisor

INTRODUCTION

The Portfolio Committee on Cooperative Governance and Traditional Affairs has resolved that over its current term of office in Parliament (2019-2024) it will intensify oversight over all the organs of state relevant to its mandate, in line with the intent of Parliament’s 2019 -2024 Strategic Plan. This approach is the Committee’s strategy to confront the deteriorating state of local government in the country, and encourage public participation in the affairs of local government as envisaged in Section 152(1)(e) of the Constitution.

The 2020/21 Municipal Finance Management Act (MFMA) audit outcomes have highlighted several municipalities that have received consecutive disclaimed audit opinions despite being under constitutional intervention. A disclaimed audit opinion is the worst opinion a municipality can obtain.

These municipalities are also subject to investigation by the Auditor-General regarding material irregularities identified in the course of audit. Not surprisingly, these municipalities are also among the 64 municipalities that have been identified as dysfunctional by the Department of Cooperative Governance’s 2021 State of Local Government Report to Cabinet. These municipalities are:

Northwest: Kgetlengriver, Madibeng, Naledi, Ditsobotla and Ramotshere Moiloa.
Northern Cape: Phokwane, Sol Plaatje, and Renosterberg.
Mpumalanga: Lekwa
KwaZulu-Natal: Nquthu and Ilanga Libalele
Eastern Cape: Makana
Western Cape: Kannaland
Limpopo: Lepelle-Nkumpi

The Portfolio Committee has resolved to conduct intensive oversight visits to these municipalities, with Makana, Lekwa, Kannaland, Lepelle-Nkumpi, and the listed municipalities in the North-West having been thus far visited or engaged virtually. The Phokwane and Sol Plaatje Local Municipalities, which are the subject of this report, have also attained a dysfunctional status due to chronic political instability. The Committee’s oversight visit to these municipalities is a follow-up on the virtual engagements held on 16 March 2021.

DAY 1: ENGAGEMENT WITH STRUCTURES RESPONSIBLE FOR SUPPORTING PHOKWANE AND SOL PLAATJE LOCAL MUNICIPALITIES

Joint presentation by Provincial COGHSTA and Treasury

The Portfolio Committee received a briefing from the Northern Cape Department of Cooperative Governance, Human Settlements and Traditional Affairs (COGHSTA), focusing on the state of performance by Sol Plaatje and Phokwane Local Municipalities, compliance with legislation, progress with implementation of Financial Recovery Plans (FRPs), and support provided in terms of Section 154 of the Constitution. The Department confirmed that both municipalities were still classified as dysfunctional as at 31 January 2023. However, efforts are underway to move Sol Plaatje out of the dysfunctional category following the recent improvements witnessed. In bid to move the province’s 16 municipalities out of the dysfunctional status, the Department – in partnership with Treasury and the South African Local Government Association (SALGA) – has developed Municipal Support and Intervention Plans (MSIPs), which have been tabled and approved in the Councils.

Regarding the state of performance, the Department compared the status quo in June 2021 when the State of Local Government Report was released vis-à-vis the status quo as at 28 February 2023, with emphasis on the political, governance, administrative, financial management and service delivery performance pillars. The following milestone were highlighted:

Sol Plaatje: Politically, the municipality is now more stable and relations with labour unions have improved, although the employment of contract workers remains a sore point. In terms of governance, the Department noted that the Chief Financial Officer (CFO) and the Municipal Manager (MM) who were previously put on precautionary suspension in connection with a Section 106 Report, have since been reinstated following a court ruling which set the report aside. Council is now exercising oversight and a consequence management policy is in place. Ward Committees have been inducted. Performance agreements with senior managers have been concluded, although performance evaluation remains a challenge.

On the administrative front, the relevant policies and procedures are in place, which is indicative of compliance with legislation. A new MM assumed duty on 01 August 2022. Key vacant positions have been advertised. In terms of financial management, the municipality now has a funded budget although it remains unsustainable due to low revenue collection. Work is underway to assist the municipality with revenue enhancement. The municipality remains stagnated on qualified audit outcomes since the 2017/18 financial year.

The municipality’s service delivery performance has been constrained and hampered by aging infrastructure (which contributes to the frequent sewer spillages), illegal electricity connections, unspent conditional grants, poor roads maintenance, and vandalism of infrastructure especially electrical cables at pump stations. Assistance with implementation of key projects to resolve the issues bedevilling the municipality is being received from the Municipal Infrastructure Support Agent (MISA), the Department of Water and Sanitation, and Public Works. Consequently, the severity of sewer spillages has been abating. A substantial amount of work in terms of Section 154 of the Constitution has been recorded, including support from SALGA in the area of non-revenue water.

Phokwane: Politically, the municipality remains under intervention in terms of Section 139(5) of the Constitution. In terms of governance, the municipality remains affected by senior management vacancies, which have resulted in the proliferation of acting appointments. All vacant senior management positions have been advertised. Council committees are meeting and ward committees have been established and inducted. Administratively, there has been a regression following the Administrator’s exist after the lapsing of the Section 139(1)(c) intervention.

In relation to financial management, Treasury has deployed a municipal finance advisor and the Municipal Public Accounts Committee (MPAC) has been trained on dealing with Unauthorised, Irregular, Fruitless and Wasteful Expenditure (UIFWE). A UIFW reduction strategy is in place and council routinely takes action on the MPAC’s recommendations. The municipality has adopted a budget funding plan and the implementation of the FRP is ongoing. A CFO is envisaged to be appointed by 01 July 2023. The municipality’s debt collection remains below the accepted norm and this has had a ripple effect on the municipality’s ability to repay its Eskom debt. In terms of service delivery, an improvement in conditional grant expenditure has been noted. The DWS has released some funding for the rehabilitation of pump stations to address the municipality’s sewer spillage crisis. The Community Work Programme in the municipality is active.

Presentation by Auditor General’s (AG) Office

Sol Plaatje: Representatives from the AG’s office briefed the Portfolio Committee on the municipality’s audit context before the appointment of the current MM. The municipality’s stagnation on qualified audit opinions over the last five years was re-emphasized. The municipality’s cash flow difficulties, and the consequent negative impact on service delivery, were highlighted. The municipality’s audit finding paragraphs have been increasing, from four paragraphs five years ago to 15 paragraphs recently. With regard to the latest audit outcome available (2021/22), the municipality’s indicators were found to be not well-defined and did not meet the measurability criteria. Over the last five years, irregular, wasteful and fruitless expenditure has been growing exponentially. The AG’s office has identified a Material Irregularity (MI) in respect of the municipality’s Eskom debt.

Phokwane: The municipality was noted for its persistent late submission of Annual Financial Statements (AFS) to the AG for auditing. This presents difficulties with regard to holding the municipality into account for its financial and non-financial performance. A material irregularity has been issued in respect of the late submission of AFS. In the last year in which the municipality was audited (2020/21), it had improved from a disclaimed to a qualified audit opinion as the number of qualification areas have reduced. Notwithstanding this improvement, the internal control environment remains ineffective and this affects the addressing of prior year findings.

Due to lack of the requisite skills, the municipality remains over-reliant on consultants for the preparation of AFS. In this regard, in 2020/21 R1.8m was paid to consultants for the preparation of AFS. The municipality has also not always been compliant with the legislative requirements for the submission of Annual Reports. There is no reliable system in place to report on performance indicators. Consequence management in respect of transgressions relating to fruitless and wasteful expenditure is lacking. The disclosed figures on UIFW are unreliable as they are likely to be understated. Investigation is not always conducted to determine liability for the UIFW. The municipality’s financial health is a concern as its expenditure exceeds its revenue.

Presentation by the National Department of Cooperative Governance and the Municipal Infrastructure Agent (MISA)

The Department briefed the Portfolio Committee on progress in the implementation of the District Development Model (DDM) in the Northern Cape province and in the Frances Baard District. Failures to submit the DDM One Plans and lack of common understanding around the DDM concept were highlighted as major areas of concern. MISA’s input focused on the project implementation support offered to Sol Plaatje and Phokwane, which ranged from green and blue drop interventions, electricity cost of supply to Municipal Infrastructure Grant (MIG) projects.

Presentation by the National House of Traditional and Khoi-San Leaders

Having appreciated the Portfolio Committee’s invitation, Kgosi Mabe from the National House of Traditional and Khoi-San Leaders highlighted the House’ interest in the work of municipalities throughout the country and how it is performed. The importance of including traditional leaders in the development of the municipality’s Integrated Development Plan (IDP) was emphasized. Municipalities were failing because they were not being actively held into account at grassroots level. An appeal was made for the provincial government to ensure that traditional leaders are capacitated to engage municipalities fruitfully. Legislation should be crafted in such a way that synergy between contributions by traditional leaders and municipalities is encouraged.

Presentation by the Northern Cape Provincial House of Traditional and Khoi-San Leaders

The Chairperson of the Provincial House of Traditional and Khoi-San Leaders informed the Portfolio Committee that there is full participation by traditional leaders in municipal councils and that the leaders are also included in the IDP process. There were no major areas of concern from the Provincial House.

Presentation by SALGA

The Association highlighted the support provided to Sol Plaatje and Phokwane around communication, capacity-building, records management training, holistic review of applicable legislation, municipal profiling, and professionalization of the local government sector. The Association is also working in partnership with the Public Affairs Research Institute (PARI) in relation to a four-year project to support Sol Plaatje. The inception date for this project was January 2022. The presenter was not available to answer questions and left the Committee meeting without tendering an apology. The Committee took exception to this behaviour.

Presentation by the Frances Baard District

The District is unable to provide meaningful support to Sol Plaatje as its budget is much smaller than that of the local municipality. Most of the District initiatives are therefore channelled towards the much weaker local municipalities of Magareng, Phokwane and Dikgatlong. In terms of governance, the District’s council committees are functional. Administratively, the filling of vacant positions has been a struggle for the District, although the position of the MM has since been filled. A level of political instability in Phokwane, including motions of no confidence against the Mayor and Speaker, was noted. The District welcomes the political stability seen in Sol Plaatje.

Two of the District’s core functions, namely environmental health services and disaster management, were outlined. The District took over the health services function, which was previously performed by the local municipalities. However, Sol Plaatje continues to execute this function as the District cannot compete with the remuneration offered to the health officers owing to the local municipality’s higher grading and District’s grant dependence. The District’s other core function, disaster management, involves the administration of a contingency fund across the four local municipalities under its jurisdiction. However, this fund gets depleted frequently. As part of its support, the District has bought skips and trucks for Sol Plaatje. Pothole problems, in respect of both Sol Plaatje and Phokwane, were highlighted.

Presentation by the Sol Plaatje Local Municipality

The municipality’s input focused on institutional capacity, political composition, functionality of Section 79 and 80 Committees in terms of the Municipal Structures Act, post-audit action plan implementation, revenue collection, consequence management, states of municipal health services and disaster management, and key highlights in terms of current projects. The municipality had just concluded a strategic planning session whose resolution was to, among other things, prioritise service delivery. A strategy to curb the high unemployment rate, particularly the 52 percent youth unemployment rate in the municipality, will be devised. The municipality’s supply chain management processes have improved due to the introduction of better internal controls, including the establishment of a financial misconduct committee. The new MM has already sanctioned three municipality officials in connection with procurement irregularities.

The municipal council is functioning optimally as meetings are taking place. Section 79 and 80 Committees have been established and are functional. The tensions between the municipality and its communities have subsided following the execution of the IDP consultation process in all the 33 wards. While most ward committees are functional, there are still those that do not work as expected. Since appointment of the new MM, the municipality has experienced no major labour unrest.

A post-audit action plan in respect of the 2021/22 audit report has been developed and submitted to National Treasury. The root causes for the stagnation in qualified audits, and the disclaimer on predetermined objectives, have been identified and a remedial action plan has been developed. One of the major recurring audit issues relates to asset management. Part of the remedial action plan included the appointment of an IDP Manager in January 2023 to address some of the issues around inadequate portfolio of evidence. The position has been vacant for seven years but it took the new MM only a few months to fill it. The municipality has also requested the AG to introduce a pre-audit trial run as to address identified problem areas timeously. An audit action plan committee has been established and meets weekly to deal with the audit matters raised in the previous financial year. An internal audit unit and an audit committee have been established.

With regard to revenue collection, the municipality is supposed to collect at least R10m a day, but there are days when R4m is barely collected. This is indicative of a serious cash flow problem, which has rendered the municipality technically bankrupt. Approximately 16 000 households are not in the municipality’s billing system, which significantly contributes to the revenue collection problem. The municipality has an indigence policy in place and continues to encourage qualifying people to register as indigents to ensure that the right households are billed. The national load shedding has also reduced the municipality’s income by eight percent. Thus the municipality is far short of the Treasury revenue collection norm of 95 percent.

While water losses have been reduced from 65 percent to 50 percent, this remain a critical issue for the municipality especially the widespread water metre theft, which exacerbates the problem. Electricity losses also remain high and work to address this problem is under way. Although the municipality’s budget is funded, National Treasury has deemed it ‘artificial’ while Provincial Treasury has advised that it is unsustainable. The payment of Eskom’s current account has improved and negotiations will soon commence regarding the writing off of some of the historical debt. The priority, however, is to manage the current account optimally. The previous default occurred when the municipality had to prioritise the payment of performance bonuses in December 2022. The municipality is also enforcing credit control by switching off non-paying customers including government departments, and even the provincial legislature.

The 2023 Budget Speech announced an allocation of R2.5bn to be disbursed to the municipality over a four-year period to address some of its key service delivery challenges. This is expected to yield at least 1000 jobs. The grant comes with strict conditions and there is a risk that it may be returned to the national fiscus if not managed and implemented properly. The fact that the municipality has never been in charge of such a large budget before, coupled with the dismal management of projects over the last five years, renders the risk of this implementation challenge very real. The municipality has noted the Portfolio Committee’s concern around senior management vacancies and has a plan to fill all vacant positions. The Executive Mayor also expressed his commitment to implementing consequence management and his wish to distinguish himself as the country’s youngest incumbent do so.

While the people observed loitering in the municipal passages were not municipal employees but community members coming to consult with their councillors, the Executive Mayor agreed that the municipality has an employee discipline problem, which was flagged as a major issue of strategic concern during the recent strategic planning session. The review of the municipality’s organogram to deal with the bloated organisational structure is also central to the municipality’s current priorities and the Portfolio Committee’s concern in this regard was noted. Contributing to the problem was the absorption of some contract workers in the municipality’s organogram at the unions’ insistence.

While the municipality’s salary bill is 35 percent of the total operating budget, and therefore within the Treasury norm of 40 percent, it is still high when benchmarked against similar secondary cities such as the George Local Municipality whose salary bill is 25 percent of the total operating budget. The Executive Mayor further acknowledged the municipality’s high unemployment rate, and its correlation with the high rate of crime within its jurisdiction. The municipality needs to be turned around and this exercise will not be easy and will require a bit of madness as opposed to the business as usual approach.

Responses to inputs by Portfolio Committee members

The MEC for COGSHTA in the Province, Mr Bentley Vass, noted that the Department has sound relations with traditional leaders despite the burning challenge of ‘tools of trade’, which is being discussed in various fora. Invitations are always extended to traditional leaders to be part of these discussions. Scarcity of financial resources is constraining the Department from responding to this challenge optimally, as the Equitable Share allocation is currently not biased towards the Northern Cape. However, the Department would not want to hide behind this. Much has been done to ensure that all traditional leaders have access to tools of trade. State housing has been allocated to the Chairperson and Deputy Chairperson of the Provincial House of Traditional and Khoi-San Leaders. Work around the accommodation of Khoi-San leaders and communities in the country’s institution of traditional leadership is underway. This is a critical task as approximately 80 percent of the country’s Khoi-San are located in the Northern Cape.

The Department has on many previous occasions responded to the matter of R500m allocation to Sol Plaatje by the Office of the Premier. The R500m was not a cash transfer but an indirect allocation to fund various projects of this total value, not just potholes. A detailed breakdown of how the money was spent was provided to the provincial Legislature. The Department will also provide this breakdown to the Portfolio Committee. The Portfolio Committee’s concern around the high vacancy rate in senior management positions was noted and supported. The Department has also been emphasizing this matter and has set the end of May 2023 as the deadline by which all vacant senior management positions in municipalities in the province must be filled. The appointment rate is currently sitting at 64 percent and there are several positions being advertised on newspapers.

The Department is confident that the matter of non-compliance with the legislated deadline for the submission of AFS will not repeat. Eskom debt is also a matter of serious concern for the Department Regarding unemployment, the MEC for Provincial Treasury observed that the Northern Cape’s 22.1 percent unemployment rate is the lowest in the country, when compared to other provinces. Nevertheless, job creation remains a serious consideration for the province, which is in the process of unlocking several catalytic projects that are expected to yield over 40 000 job opportunities over the next few years. Provincial Treasury is prepared to furnish the Portfolio Committee with a detailed report in this regard.

Sol Plaatje’s unsustainable budget relates to the challenges around revenue collection. The province takes the issue of municipal Eskom debt seriously, with the Premier leading the efforts to resolve the problem. This remains a difficult problem for the province to resolve. Regarding the province’s litigious environment, the MEC clarified that municipalities are most often the initiators of the court action against provincial government. On the Sol Plaatje Section 106 Report which the court set aside, it was indicated that the provincial government did not comply with the requirement to make the process public and swear in witnesses, as envisaged in the Commission’s Act of 1947. The technical demands for implementing Section 106 of the Municipal Systems Act are becoming more exacting such that adhering to these stringently will require replicating the procedure followed by the Zondo Commission of Inquiry into State Capture.

On the salary disparities between middle and senior managers in the Frances Baard District where the former earn more than the latter thus making it difficult to attract senior managers, it was indicated that a remuneration committee has been established to resolve this matter. The District Mayor lamented what she perceived to be a lack of correlation between the national fiscal allocations to local government and the realities municipalities face, as to accommodate the fact that the functions of other departments interface with local government.

DAY 2: ENGAGEMENT WITH SOL PLAATJE COMMUNITY STAKEHOLDERS AND SITE VISITS

Stakeholder engagement

The Portfolio Committee received inputs from the Chief Executive Officer (CEO) of Beef Master, an association of beef exporting companies; a former ward councillor and community member from Ward 23; a representative from the Frances Baard Business Forum; a community member from Ward 4; the CEO of the Northern Cape Chamber of Commerce; and a representative from the Sol Plaatje Ratepayers’ Union.

Beef Master. The company CEO, Mr Louw van Reenen, expressed his gratitude for the opportunity to address the Portfolio Committee. He described Beef Master as a small group of South African companies that produce and export beef internationally. In Kimberly alone the business employs approximately 700 people. While the business primarily competes in the international beef export market, it also sells to retail stores domestically and serves both high income and low income areas equally. The business is making a significant contribution to the country’s urban and township economies and does so without any political motivation. It has supported the whole spectrum of community groupings within the Sol Plaatje locality and the meat business has made it easy to do so.

The world market, however, dictates the business’ main experience. In this regard it is becoming increasingly difficult for the business to compete against peer countries such as Brazil’s beef export industry, which, through the aid of government subsidies, is currently the world leader in the market. The South African government provides no similar incentives for the local beef producers and exporters. Beef Master is keen to work cooperatively with the municipality but is also cognisant of its dire financial straits. From a business point of view, it is difficult to see how an institution that owes R800m to its creditors can survive.

Kimberly cannot attract new business as it is currently the most expensive city to do business due to the high electricity costs. The first death knell for business was sounded in 2012 when the National Energy Regulator of South Africa (NERSA) approved a 50 percent electricity tariff increase for Sol Plaatje. Beef Master’s key motivation is to make a positive contribution in Sol Plaatje but has observed a tendency to ascribe political motivation to business’ legitimate concerns.

As part of its efforts to make a positive contribution, Beef Master has previously entered into a deal with the municipality to address the public relations disaster following media coverage of blood-tinged sewer spillage. The company bought the necessary equipment to bring the dysfunctional sewage plant back to its functional state, but the municipality did not pay back. The municipality’s central problem is financial and a strong committee is needed to run the municipality’s financials. While the new MM is excellent, the municipal financial environment poses a major constraint to his efforts to bring positive change. Parliament’s intervention in this regard is much needed.

Ward 23 community member. The community member introduced himself as Phillip Vorster and a former ward councillor. The resident lamented the lack of political will to fix the municipality’s sewage problem. The Sol Plaatje community has not derived much benefit from the R145m upgrade to city’s main Waste Water Treatment Works, as this facility has never managed more than two years of uninterrupted functionality. Pumps and cables are routinely stolen and the facility has been beleaguered by staffing problems.

Municipal employees are 40 percent too many and employment is merely for the sake of getting people jobs rather than advancing service delivery. The five-member leak fixing team, for instance, would not proceed to work if one of the members calls in sick. Businesses are leaving Kimberly as they are not getting any joy from the municipality. The deal with Beef Master to fix the sewage crisis was never tabled in council. At the root of the municipality’s financial woes is mismanagement of funds. Not even two percent of the municipality’s capital budget is spent on maintenance and repairs, thus far below the Treasury norm of eight percent.

Frances Baard Business Forum. Having welcomed the opportunity afforded by Parliament, the Forum’s representative lamented the lack of public participation and community involvement in the municipality’s affairs. The lack or non-enforcement of by-laws relating to the operation of informal businesses by non-South Africans was raised as a major concern. Locals could not benefit from the COVID-19 relief fund as the space had been taken over by foreign nationals. While locals plough the profits back to the community, it is not known where the foreign nationals invest their money. Engagements with the MM on this matter have been dismal.

The municipality does not give preference to local businesses, opting instead to award a large share of its procurement budget to companies from outside the province. The lack of a stakeholder engagement policy makes it difficult for local business to have a meaningful working relationship with the municipality. The municipality’s Local Economic Development (LED) component is also not serving the interest of local business.

Ward 4 community member. The resident informed the Portfolio Committee that she had been waiting since her child was in primary school to obtain residence and to have her own residential address. Her child has since grown and graduated from high school and she is still without formal residence. The resident appealed to the Portfolio Committee to intervene on her behalf.

Northern Cape Chamber of Commerce: Led by the CEO, Ms Sharon Steyn, the Chamber expressed gratitude for the opportunity to express its distress with the Sol Plaatje municipal state of affairs. The Chamber represents over 400 businesses in Kimberly but receives no support and service delivery from the municipality. Some businesses do not pay rates and the municipality needs to deal with these. The municipality does not support local business as 80 to 90 percent of the tenders are awarded to companies from outside the province. Local business takes the second or third place and tender nepotism is rife. At 36 to 37 percent, the municipality’s unemployment’s rate is a serious cause for concern. The municipality’s pothole and sewerage problems are a disgrace. Questions remain around whether the Treasury allocation to address the water and sewerage problems will be used correctly.

The unexplained nightly water shutdowns provide no incentive for business to come to Kimberly. The municipality has nothing to offer business. A one-on-one discussion between the municipality and business on these matters is needed. However, it is impossible to initiate such a discussion when the municipality’s phone system does not accept incoming calls. There is much work to be done to return Kimberly to its former state.

Sol Plaatje Ratepayers Union. The Union representative noted that the challenges in Sol Plaatje are not new and have been in existence for many years. The challenges are numerous and narrating all of them would take a larger part of the day. Many of these challenges have their distinct origin from the 2011/12 financial year. The municipality is worth R2.6bn on paper, but in practice it is far less than that. Electricity losses are in excess of R100m as lights are not fixed. The majority of the city’s electricity users are prepaid customers, and this should make it possible for the municipality to be up to date with Eskom debt repayment. The municipality’s repayment difficulties suggest that it is prioritising payment of salaries over Eskom debt. The people responsible for the municipality’s chaotic state are no longer in charge and the new leadership is capable of bringing positive change. Parliament needs to step in urgently and provide the necessary support.

Response by the municipality

On the municipality’s allegedly high electricity costs, it was indicated that Sol Plaatje was the only municipality in the country that did not implement the 7.5 percent tariff increase and opted instead for 4.5 percent. This has cost the municipality R20m in lost revenue. Sol Plaatje was also the only municipality that did not increase water tariffs. The Beef Master matter came to council’s attention after the work had already been concluded. The deal with the company therefore happened without council decision and the matter is currently serving before the MPAC. The municipality is also considering a forensic investigation into the matter. Kimberly’s main Waste Water Treatment Works has not been operational over the last four years and the municipality has fixed this. The allegation that key Plant personnel do not have the requisite skills and competencies is incorrect. Cable theft has been a serious problem in the past but the municipality has since addressed the matter.

The municipality agreed that its staff complement is excessive. The organogram will be reviewed and positions that do not contribute substantively to the organisation’s mission will be eschewed. On the awarding of tenders to companies from outside the province, the municipality indicated that everyone in Sol Plaatje is afforded an opportunity to bid. The 2021 pothole patching project, for example, was managed and run by locals from within the province. The municipality has also finalised a new procurement policy, which requires that a certain percentage of a tender should give preference to local business, women, youth and people with disabilities.

There are currently six teams dedicated to fixing potholes and the municipality is on course to close every single pothole in the city. The recent rains have exacerbated the pothole problem. The municipality has Peace Officers and by-laws to regulate the operation of informal businesses to ensure compliance with legislation. The nightly water shutdowns were meant to ensure that water is safe to drink following the overflow of the Vaal River due to the recent heavy rains. The municipality will soon provide comprehensive feedback to the Northern Cape Chamber of Commerce on this matter.

The municipality has a public participation policy in place, and the IDP reviews conducted in the 33 wards between November 2022 and January 2023 gave practical expression to the policy. The matter of the Ward 4 resident who has been waiting for years to have her own residential address will be addressed and a report will be furnished to the Portfolio Committee. With regard to supporting the township economy, the municipality has established a mobile laboratory in the Galeshewe township. This is a project started by the World Bank and supported by the Science and Technology and the provincial Economic Development Departments. The project’s principal focus is on transferring technology to Small, Medium and Micro Enterprises (SMMEs) with emphasis on applications development, coding and robotics and the Fourth Industrial Revolution in general. The initiative is still at the infant stage as the Premier only launched it in 2021.

It is true that calls to the municipality often do not connect. The municipality has received funding to the value of R45m to enhance its call centre. The centre is operational and has improved but is not yet where it should be. A municipal electrical engineer will be sourced to rectify the issue of street lights that burn throughout the day. The R2.6bn grant from Treasury will solve many of the municipality’s problems especially those relating to aged infrastructure.

Site visits

Following the engagement with the Sol Plaatje municipal stakeholders, the Portfolio Committee undertook a site visit to the Homevalle Waste Water Treatment Works, Kimberly’s main sewerage plant, and the Gogga Pump Station which serves the facility.

Homevalle Waste Water Treatment Works. The facility, which had come to a standstill in 2018 due to a community shutdown, has been upgraded from 33 to 48 mega litres. The upgrade involved replacing stolen electricity cables. The work on the additional 15 mega litre capacity was completed in 2017 and the facility has been fully operational since 2022. Plant security remains critical and the municipality is looking at securing all the pump stations. Currently, only access control is fully secured.

Improving the skillset of plant operators is the municipality’s other priority area. The Portfolio Committee was informed that there was no untreated outflow from the facility. However, on further probing it emerged that there was untreated waste water flowing into the Vaal River. The facility was therefore contributing to the Vaal’s sewage contamination. Furthermore, not all of the facility’s specifications meet the Department of Water and Sanitation (DWS) standards. The municipality undertook to comply with all DWS requirements within three months of the visit by the Committee.

Gogga Pump Station. The pump station serves the main facility and is currently under repairs, which are envisaged to be completed within six weeks. There was not much engagement on this site as most of the Portfolio Committee members did not listen to the briefing. Some of them expressed dissatisfaction with the kind of sites being visited. Only the Portfolio Committee Chairperson and one other member received the briefing on this site.

DAY 3: MEETING WITH PHOKWANE LOCAL MUNICIPALTY AND MUNICIPAL STAKEHOLDERS

The MEC for COGSHTA in the province, Mr Vass, provided an overview of the challenges facing the Phokwane Local Municipality, including the challenges around revenue collection; the municipality’s categorisation as dysfunctional; late submission of AFS; vacant senior management positions; the bloated salary bill; outstanding debt to Eskom, Water Boards and the AG; and challenges relating to service delivery, water and electricity provision. The provincial government is working hard to address these matters and hopes that after the engagement with the Portfolio Committee, things will change for the better in the municipality.

Presentation by the Phokwane Local Municipality

The Executive Mayor welcomed the Portfolio Committee’s presence in the municipality and expressed the hope that the visit will push the institution in the right direction. In his political overview, the Executive Mayor highlighted that Phokwane had a hung council and this presented certain challenges such as the presence of two Speakers. These challenges, however, have not affected municipal operations. Compared to its previous state shortly after the 2021 local government elections, the municipal council is now fairly stable. Both section 70 and 80 committees are functional. Administratively, serious challenges remain around the filling of senior management positions. However, the municipality is in the process of making appointments.

The Acting MM, who has been seconded to the municipality by the provincial government, delivered the rest of the municipality’s report. Among the issues highlighted was that the municipality’s revenue collection rate had improved to 53.4 percent, which is still far from the Treasury norm of 95 percent. The municipality’s credit control policy, including switching off non-paying customers, is in force. Those who qualify as indigents are encouraged to come forward and register. However, the municipality is unable to enforce credit control in Eskom supply areas such as Pampierstad and Vaspan. The municipality has been seized with numerous legal matters relating to electricity disconnections due to misunderstandings with communities around cutting off of services and the issue of indigents. The Vaalharts District Agricultural Union is being engaged to pay back the monies owed to the municipality. Debt owed to the municipality by government departments, business and households amounts to R941m.

The current national load shedding is negatively affecting the municipality’s ability to provide water. The municipality’s water reticulation infrastructure has aged, leading to frequent sewer pipe bursts. MISA is providing technical assistance to address this matter. A business case has been submitted to the DWS in respect of Pampierstad where communities have built on top of sewer lines, leading to frequent pipe bursts which are nearly impossible to fix as the houses are standing in the way. Illegal connections also contribute to water and electricity losses. The municipality currently does not have the capacity to quantify and distinguish between technical and non-technical losses. A recent metre audit revealed that approximately 3000 households were not paying for electricity.

The Acting MM has managed to move the municipality from a disclaimer to a qualified audit opinion. However, the record-keeping problems that led to the disclaimer have not yet been fully resolved. The outstanding 2020/21 and 2021/22 AFS have been submitted to the AG for auditing. The municipality’s Internal Audit Unit has been resuscitated and a Chief Audit Executive has been appointed. A post audit action plan in respect of the 2020/21 audit findings has been tabled in council. The number of audit findings has reduced from 138 in 2019/20 to 72 in 2020/21.

The municipality’s salary bill is still within the Treasury norm, although the municipality’s organisational structure is bloated at the lower levels. All positions are funded and the municipality is able to pay salaries every month. The municipality does not owe any third parties. However, the municipality’s budget remains unfunded but a Standing Committee has been established to deal with this matter. Debt to the municipality’s three main creditors – Eskom, Bloem Water and Vaalharts Water – also remains outstanding. There is currently no repayment agreement with Eskom, which is owed R270m. Three meetings with Eskom have been convened but a repayment agreement that is satisfactory to both parties could not be concluded. Another meeting with Eskom is scheduled for 05 April 2023. A repayment arrangement in respect of the R81m owed to Vaalharts Water has been concluded. Bloem Water is owed R120m but the municipality no longer has a contractual agreement with the Water Board and only transacts on a month-to-month basis.

At over R1bn, the municipality’s UIFW is very high. The long absence of an MPAC and a Financial Disciplinary Board has contributed to this. The MPAC and the Disciplinary Board are now functional, and the former is currently investigating the UIFW, dating back from 2010. Consequence management will be effect as soon as the MPAC concludes its investigation. A UIFW reduction strategy is in place. The municipality has embarked on cost saving measures such as reduction in overtime and kilometres travelled, reducing catering expenses to water, and freezing non-critical posts. The FRP has been institutionalised and all are involved in its implementation. Progress on the FRP’s implementation is reported to council and provincial Treasury on a monthly basis. Financial constraints prevent the municipality from implementing the MISP to move it out of the dysfunctional category.

Disaster management funding has enabled the municipality to commence with capital projects such as the fixing of the Mangope Road, a project which the Portfolio Committee also visited. The municipality has also received funding from the District to assist with repair and maintenance of pump stations. The DWS has contributed R15.7m towards bulk water supply. Other capital projects funded through the Water Services Infrastructure Grant (WSIG), INEP and the MIG were highlighted. The municipality’s Standing Rules of Order have been revised to accommodate Khoi-San leaders although there are currently no traditional and Khoi-San leaders within the municipality’s jurisdiction.

Responses to inputs by Portfolio Committee members

The Executive Mayor re-affirmed his assertion to the effect that the municipality is currently stable. He re-iterated that political and administrative instability did persist in the wake of the 2021 local government elections when the first council meeting was disrupted. The matters that had caused the instability went to court. This is when the municipality had started advertising senior management vacancies. The court ruled that the municipality should put all major decisions on hold. This moratorium was lifted after three months, and by then, the advert timelines had lapsed and the municipality had to re-advertise. This negatively affected the timely submission of AFS. Following this experience, councillors sat down and took a decision to work across party lines. In this way, political stability returned. Consequently, all section 79 and 80 committees are now functional. The municipality is meeting and engaging communities and has a plan to resolve the key problems they are facing.

The Acting MM indicated that a Task Team has been appointed to assist the MPAC in its UIFW investigation to ensure that there are no unjustifiable write-offs. The municipality has paid R1.3m to consultants in relation to the preparation of AFS for the 2020/21 financial year. The Acting MM is finding it strenuous to work without senior management. All the relevant staff have signed performance agreements with the Department of Cooperative Governance and are held accountable. The challenges experienced when the municipality was under administration were mainly labour related. Workers were not consulted on important decisions and the Local Labour Forum (LLF) was not functional. These matters have since been resolved and no labour unrest has been witnessed since the inauguration of the new administration. Proper consumer profiling and data cleansing to ensure correct billing are underway.

The Acting MM admitted to the municipality’s high unemployment rate. The Hartswater landfill site is licenced but there are challenges around compliance with operation specifications. Part of the municipality’s revenue enhancement strategy was the installation of prepaid meters. Following the approval of LED funding policy by council, the municipality has allocated R3m to LED and the upskilling of SMMEs within its jurisdiction. The training will focus on the preparation of AFS. The unregistered technician in the municipality is in the process of being registered.

MISA has assisted the municipality on its green drop master plan. The plan is still a draft. The provincial COGSHTA has provided yellow and other municipal fleet. A mechanic will be appointed to respond to any mechanical issues that may arise. On the appointment of the administrator, the province believes that it had made the right decision and that he was the right person for the job. The challenges around coalition municipal governments should be addressed through amendments to the Municipal Structures Act. Coalition arrangements should benefit municipalities and improve service delivery. The MEC’s office will monitor the municipality’s post audit action plan. The province will also be working with municipalities with regard to the filling of vacant senior management posts.

The Speaker noted that the municipality has had three ordinary council meetings since the inauguration of the new administration. The Acting MM promised to engage the AG regarding the discrepancy in the consultant fee amount disclosed in the municipality’s AFS vis-à-vis the figures used by the AG. Parliament’s amendments to the Municipal Systems Act, as to separate politics from administration, were welcomed and appreciated.

Stakeholder engagement

The Portfolio Committee received submissions from the South African National Civics Organisation (SANCO), a Business Forum, the Vaalharts Agricultural Union, a Ward 5 resident, a Ganspan resident, a Youth Non-Profit Organisation (NPO), a former municipal employee from Ward 4, the Taxpayers Association, the Taxi Association of Hartswater, a Ward 7 resident, AfriForum, and the Frances Baard Economic Forum in Phokwane.

South African National Civics Organisation (SANCO). The SANCO Phokwane sub-region Spokesperson, Mr Modise, delivered an oral submission and also furnished the Portfolio Committee with a written statement. Mr Modise brought to attention the gap between the municipality and its communities, and its failure to fulfil its promises to the people. The IDP is currently a council boardroom activity. There are many community protests in the municipality due to perceived local government failure to engage ordinary people in the political process. Mass mobilisation and the implementation of a communication strategy should be at the top of the municipality’s agenda. The need to develop partnerships with established business as to empower local SMMEs and increase employment opportunities was emphasized. The scourge of corruption, greed and elitism was decried. Phokwane councillors were criticised for demonstrating no commitment to serve the people. Mr Modise appealed for assistance with office space, furniture, computers, and telephones as to be in a better position to build a meaningful relationship with the municipality.

Business Forum. The Business Forum representative decried the relocation of tourist attractions from Phokwane to Potchefstroom. The pan that used to attract tourists to Phokwane is now a white elephant. The apartheid government invested extensively on tourism and the municipality can learn a lesson from this.

Valhaarts Agricultural Union. The Union’s Managing Director highlighted agriculture as a major contributor to Phokwane’s economy. The Union represents 36 000 hectares of farmland and 362 farmers in the area. It has made extensive contributions to Phokwane including ensuring drinking water safety, keeping the roads navigable, providing fire and other emergency services, cleaning of towns, and contributing to 34 percent of the municipal coffers through property tax. The Union has ploughed approximately R4bn back to the community. Farmworkers are trained regularly. Despite these contributions, the Union is still not regarded as a critical municipal stakeholder and was not invited to the meeting with the Portfolio Committee.

The Union expects a functional municipality. Over the last four years, the institution has gone through five MMs and three CFOs but is still not functioning satisfactorily. The traffic department is a major problem as there no funds available to employ traffic officers after hours when drunk driving is at its height. The Union will also furnish a written submission to the Portfolio Committee.

Ward 5 resident. The resident highlighted the plight of vulnerable people who do not have access to drinking water in their yards or dwellings; the exceedingly high unemployment rate in the municipal area; councillors who, after election, do not return to the community to provide feedback; and the peddling of drugs without any consequences.

Ganspan resident. The resident brought to the Portfolio Committee’s attention problems around RDP house provision in Ganspan. The problem of unfinished projects in the municipality, including construction on a sports facility that has been ongoing since 1994, was also highlighted.

Youth NPO. The NPO’s founder noted that life was very difficult for the youth in Phokwane due to lack of recreation facilities. Consequently, young people resort to alcohol. Government does not care and the municipality and Parliament provide no support. There are no leadership summits for young people in Phokwane and therefore the youth are not being trained to be leaders. For the youth to access anything, they must go through long procedures, for which they have no patience. The Youth NPO founder appealed for the plight of young people to be taken seriously.

A former municipal employee from Ward 4. The resident mainly spoke in the vernacular but the municipality explained that he is a former municipal employee who seeks to be reinstated. However, his matter was dismissed by the CCMA.

Taxpayers Association. The representative from the association did not appreciate being not invited by the municipality to be part of the meeting. He appealed for the municipality to sort out the issue of UIFW as the amounts involved could provide everything the municipality needs. Municipal accounts are frequently not sent out to people, and when they are, they are usually incorrect. People will not pay if the accounts are incorrect. There is no reason to pay if the municipality does not fulfil its obligations. Parliament needs to monitor this issue.

Taxi Association of Hartswater. The representative felt that life was better when he worked for white people, as he has not benefited from the fruits of democracy and the promise of a better life for all. His vote has not delivered the expected gain.

Ward 7 resident. The resident lamented the lack of councillor representation in the meeting. He advised that the R1.2bn in UIFW is corruption and should not be couched in acceptable language. The municipality has had no proper administration as it has been run through an administrator and a seconded MM.

AfriForum. The Forum’s District Coordinator, Ms Lize-Mari van der Linden, indicated that the Forum’s Vaalharts branch was not invited to the meeting and was only alerted to it ten minutes before its start. Ms van der Linden submitted that the municipality’s landfill site is unlicensed and used to score 4 out of 25. It has deteriorated further and now scores 1 out of 25. The municipal water quality has been tested and found unfit for human consumption. Street lights are not working, giving rise to murder and rape cases. The municipality ignores the public notwithstanding its tax contributions.

Frances Baard Economic Forum in Phokwane. The Forum’s representative pointed out that it is always the community that suffers whenever there is political instability. He appealed for councillors to set political differences aside and focus on serving the communities that had voted them into power. The municipality’s vacant senior management positions and poor service delivery were highlighted as major issues of concern. The representative acknowledged that the acting MM has proved herself in the short time of her secondment to the municipality.

Response by the municipality

The Executive Mayor extended an apology to the Vaalharts Agricultural Union for not having invited it to the stakeholder engagement. The Union is indeed the biggest contributor in terms of property rates. There have admittedly been inaccuracies in the municipality’s billing system since 2013, and the municipality’s revenue manager is working on resolving the issue. The municipality must also look into the matter of 150 000 hectares of farmland that was purchased for R57 in the 1990s. The traffic department is being revamped to improve its functionality.

The municipality’s approved LED policy will address the issues raised by the Business Forum and the Youth NPO founder. Young people are always encouraged to apply for funding opportunities but the municipality also wants to fund sustainable entrepreneurship. On the sports facility in Ganspan, the municipality has engaged the Sports, Arts and Culture Department to resuscitate the stadium. The need for recreational facilities for young people was acknowledged. The RDP housing problem in Ganspan is related to the miniscule budget baseline for the Northern Cape province. The R354m baseline allocation to the province is inadequate and needs to be reviewed.

The process to fill vacant senior management positions is at an advanced stage. The municipality is busy providing electrification to unconnected areas. Several roads have been repaired and the work is ongoing. The municipality encourages community stakeholders to come and introduce themselves, and thus forge good working relations going forward. Environmental compliance directives have been issued against the municipality by various institutions including the South African Human Rights Commission. The municipality is attending to these directives. The Portfolio Committee is invited to return to the municipality to determine whether the promises made have been fulfilled.

DAY 4: SITE VISITS IN THE PHOKWANE MUNICIPAL AREA

The Portfolio Committee devoted the day, and concluded the oversight, by undertaking site visits to critical service delivery projects in the Phokwane municipal area. These sites comprised the resealing of the Mangope Avenue in Pampierstad; refurbishment of pump station D in Sakhile township; sewer spillages due to houses built on top of sewer pipelines; replacement of asbestos with PVC pipes; electrification project in Jan Kempdorp; and Ganspan Water Reservoir.

Resealing of the Mangope Avenue

The municipality obtained R3m through a disaster grant to fix 800 metres of the road. The amount is not enough to resurface the whole road as this costs R7m per kilometre. At the time of the Portfolio Committee’s visit, the road had just been compacted and will thereafter be tarred. MISA is not involved in the project and the Portfolio Committee noted that MISA’s involvement could assist with the running costs. The project has yielded approximately ten job opportunities. However, no local contractor has benefitted from the project despite the existence of a preferential procurement policy that allows 30 percent of the tender to benefit locals. The municipality explained that a Grade 8 contractor was required for the project but no contractor in the Northern Cape possessed this level of competency. However, in other projects, local sub-contractors are involved.

Pump station D

This is one of the four pump stations that has been refurbished following damage due to vandalism. Funding from the DWS has enabled the municipality to install a concrete roof, electric fence and a telemetric system. The project is complete although the completion date was two months behind schedule due to Eskom related problems. Portfolio Committee members indicated that they were happy with the project and the facility’s security.

Sewer spillages due to houses built on top of sewer pipelines

In this area of Pampierstad, the Portfolio Committee encountered a stream of sewerage running through the mud streets. The sewerage stream source emanated from two houses whose drains had been overflowing for some time. The municipality is unable to fix the problem because the houses are built on top of the sewer pipeline that must be repaired to resolve issue. The whole line is constructed from asbestos pipes that need to be replaced. The municipality could not furnish the Portfolio Committee with a satisfactory plan on how the problem will be addressed, except to indicate that it had submitted a business plan to the DWS to assist with the required funding.

While inspecting the sewer spillage, the Portfolio Committee was approached by two elderly gentlemen who led it to an abandoned project site a few blocks away. The Executive Mayor launched the project on 11 May 2022 and its aim was to re-gravel Kolong Street to make it driveable following severe flood damage. The allocated funding of R900 000 was not enough to see the project to completion. Consequently, the mounds of gravel meant to be used in the project are sitting unutilised, blocking access to the road and nearby houses. The community has had six meetings with the Executive Mayor who promised to raise the funding shortfall, but no feedback has been received to date. Documentation is available to prove the community’s numerous interaction with municipal officials. The Portfolio Committee instructed the municipality to address the matter and report back to it within seven days.

Replacement of asbestos with PVC pipes

The Portfolio Committee proceeded to a site in Pampierstad where the municipality is busy decommissioning the old asbestos pipe network and replacing it with PVC pipes, of which 98 percent has been laid. The rest will be completed by end June 2023. The project has benefitted 2700 community members in Pampierstad including 12 SMMEs. The contractor undertook to fix the re-gravelling problem in Kolong street as to afford people access to their houses at the very least.

Electrification project in Jan Kempdorp

The project is funded through the INEP grant and 600 stands were earmarked for electrification. The major challenge encountered related to unoccupied stands, but this has been resolved as almost 100 percent of the stands are now occupied. The project has been completed and switching on will soon commence. Beneficiary registration with the municipality is the main outstanding issue. Portfolio Committee members requested to be shown the interior of a stand that has been completed. The request was acceded to and the Committee was led to a stand occupied by a gentleman hailing from Queenstown in the Eastern Cape. The occupant indicated that he was happy with the electricity provided. The Portfolio Committee observed that following the electrification there are likely to be more demands for better housing and related services, and the municipality should be prepared for this.

Ganspan Water Reservoir

The Reservoir was the last site visited by the Portfolio Committee at the insistence of the SANCO representative. There are 5000 people in the Ganspan voters’ roll but the Reservoir was servicing far more than this number due to the mushrooming of informal settlements. The Reservoir is thus stretched beyond design capacity rendering drinking water a health hazard. The municipality indicated that it is in the process of formalising the informal settlements in Ganspan. Currently, an Environmental Impact Assessment (EIA) process is underway. In winding up the oversight, the Portfolio Committee Chairperson noted that the municipality has potential to change, the pressure of resources notwithstanding. The Executive Mayor invited the Portfolio Committee to return at a later date as this will put pressure on the officials to deliver services. The Portfolio Committee’s oversight visit was appreciated as it gave the municipality a push in the right direction.

COMMITTEE OBSERVATIONS

Having listened to inputs from the Sol Plaatje and Phokwane local municipalities, the structures supporting these municipalities and the community stakeholders in both municipalities, and having undertaken site visits to critical service delivery projects in both municipalities, the Portfolio Committee observed as follows:

Both Phokwane and Sol Plaatje have high vacancy rates at senior management level and yet the organograms are bloated and the salary bills are very high. A way should be found to reduce the salary bills.

The province does not seem to be addressing the root cause of the vacancies and the proliferation acting personnel. The acting personnel, however, should be equal to the task as they meet the minimum requirements for the acting positions.

The funded but unsustainable and artificial budget of Sol Plaatje nullifies the advantage of having a funded budget. The factors that make the funded budget unsustainable and artificial should be unpacked.

The provincial COGSHTA’s reference to DDM cadres rather than DDM champions is not helpful and will not assist the cause of this development model.

The impending move to re-categorise Sol Plaatje from a dysfunctional to a medium risk municipality is not justified, as the municipality has stagnated on qualified audit opinions over the last five years.

At the root of the tensions between communities and municipalities is lack of service delivery. In appreciating this reality, the Portfolio Committee’s oversight visit should not be a once-off but a regular occurrence.

The Frances Baard District’s six consecutive unqualified audits, and its clear presentation on its Local Economic Development strategy and revenue enhancement plan, deserve to be congratulated.

SALGA did not clearly explain its assistance to Sol Plaatje and Phokwane and how it measures the impact of its capacity building measures.

The reported functionality of Sol Plaatje’s public participation processes and the resolution of the sewer spillage problem contradicts what the Portfolio Committee has heard from municipal stakeholders.

It should be possible for Sol Plaatje to give preference to local business and build local capacity without flouting supply chain management processes.

The vote of no confidence against the Mayor and Speaker in Phokwane is akin to swimming in the mud. From a service delivery point of view, no good can be expected from it.

Governments departments owing Phokwane are adding to the municipality’s struggles. The municipality’s financial position would improve significantly if the monies owed were paid. There needs to be a definite credit control plan that targets these government departments.

The involvement of MISA in the road sealing project in Pampierstad, Phokwane, could have assisted with managing the project’s running costs. Capacitation of local contractors to achieve the required level of competency for projects of this nature should be prioritised.

COMMITTEE RECOMMENDATIONS

The Northern Cape Department of Cooperative Governance, Human Settlements and Traditional Affairs should furnish the Portfolio Committee with a report providing a detailed break-down of the R500m disbursed to the Sol Plaatje Local Municipality by the Premier’s Office in 2019. The report should be furnished within 14 days of the Committee’s meeting with the MEC.

The COGSHTA Department should furnish the Portfolio Committee with the close out report on the Section 139(1)(c) intervention in the Phokwane Local Municipality within 14 days of the Committee’s meeting with the MEC.

The Portfolio Committee should follow up with the Sol Plaatje Local Municipality on the matter of the Ward 4 resident who has been waiting for years to have her own residence and residential address.

The Sol Plaatje Local Municipality should furnish the Portfolio Committee with its plan to fix the potholes in the city; a report on the cost of the 2018 shutdown in relation to Homevalle Waste Water Treatment Works and the kind of security needed to ensure that the facility is fully secured; and a report on the facility’s current staff complement. The information should reach the Committee within 14 days of its meeting with the municipality.

The Sol Plaatje Local Municipality should, within 14 days of the meeting, also forward to the Portfolio Committee the Court Order relating to the setting aside of the Section 106 investigation report, and share the lessons learned in this regard.

The Portfolio Committee should reconsider its approach to municipal stakeholder invitations to ensure that all the relevant interest groups are represented. The Sol Plaatje Speaker should also establish a stakeholders’ forum to provide a platform for all the relevant stakeholders to air their views.

The Phokwane Local Municipality should establish a Steering Committee to guide the municipality towards having a funded budget.

Two months after the Portfolio Committee’s oversight visit, the Phokwane Local Municipality should furnish the Committee with a progress report on the critical matters raised.

The Phokwane Local Municipality should furnish the Portfolio Committee with a plan on how it will fix the sewer problem in Pampierstad.

Report to be considered.

Documents