State of Fetakgomo Tubatse Local Municipality: Report to Parliamentary Portfolio Committee on Cooperative Governance and Traditional Affairs

Detailed presentation by Mayor Cllr. RS Mamekoa on the state of Fetakgomo Tubatse Local Municipality, covering areas such as institutional capacity, stability, salary disparities, media issues, audit matters, COVID-19 expenditure, service delivery, and compliance. It provides insights into the municipality's background, population growth, and institutional capacity status at the top level management. The report highlights challenges and progress in various aspects of governance and service provision in the municipality.

• Municipality
• Governance
• Traditional Affairs
• Cooperative
• Performance

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1. REPORT ON THE STATE OF FETAKGOMO TUBATSE LOCAL MUNICIPALITY PRESENTATION TO PARLIAMENTARY PORTFOLIO COMMITTEE ON COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS BY THE MAYOR : CLLR. RS MAMEKOA DATE: 17 March 2021 1

2. TABLE OF CONTENTS 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. Background Institutional Capacity Institutional Stability Salary disparities/ Parity Media Issues Material Litigations VBS Matters Audit Committee, Risk Management Committee, Municipal Public Accounts Committee (MPAC) Council structures Implementation of Post Audit Acton Plan Breakdown of COVID 19 Expenditure Revenue CollectionERIOD JULY 2019 TO FEBRUARY 2020 Irregular Expenditure Use of Consultants Conditional grants performance Funding Measurement Current MIG Projects Performance Service Delivery Midyear Performance (SDBIP 2020/21) SPLUMA Compliance and Implementation

3. 1. BACKROUND Fetakgomo Tubatse Municipality is a Category B municipalities under Sekhukhune District Municipality (SDM) in Limpopo province. The municipality was established in 2016 after local government elections. It is product of amalgamation of two erstwhile municipalities namely Fetakgomo and Greater Tubatse local municipalities. The municipality is located north of N4 highway, Middleburg, Belfast and Mbombela; and east of the N1 highway; Groblersdal and Polokwane. The municipal area of jurisdiction covers approximately 4550.001105 square kilometres or 45500.1105 ha in size. The area is known as the middle veld as it is located between the Highveld and lowveld regions. The municipality comprises approximately 297 villages and 39 wards. The municipality is largely dominated by rural landscape with only 6 (six) proclaimed townships. Municipality is characterised by inadequate infrastructure, major service backlogs, dispersed human settlements and high poverty status. The municipality is endowed with mineral resources and 21 mines are in operation, and furthermore identified for Special Economic Zone (SEZ).

4. 1.1. MUNICIPAL POPULATION According to the 2011 Stats SA total population of the municipality was 429 470 and thehouseholds were 106 050 in 2011. According to 2016 community survey the population of the municipality was 490 381 and the households were 125 454 in 2016. Comparison of the two data demonstrate a population increase by 14% (60 911 people) and households increase of 18% (19 404 new households). The statistic makes Fetakgomo Tubatse local Municipality the highly populated Municipality in the Sekhukhune district Municipality.

5. 2. INSTITUTIONAL CAPACITY STATUS ON TOP LEVEL MANAGEMENT SIGNED PERFORMAMCE AGREEMENT Yes Yes Yes Yes Yes Yes Yes Yes NAME OF OFFICIAL NW Phala MJ Makgata N/A RM Magooa N/A MAN Mathebula None K Shongwe D Mashoeu HIGHEST QUALIFICATION NQF Level 9 NQF Level 9 N/A NQF Level 9 N/A NQF Level 7 NQF Level 7 NQF Level 8 MINIMUM COMPETENCY Completed Completed N/A Completed Completed In progress In progress In progress POSITION Minicipal Manager Chief Financial Officer Director Corporate Services Director Community Services Director Technical Services Director Development Planning Filled Directo LEDT Director Regional Office STATUS Filled Filled Vacant Filled Vacant REASON FOR VACANCY AND MEASURES None None Contract Terminated (Pending Legal processes) None Resigned Filled Filled None None

6. 3. INSTITUTIONAL STABILITY Since 2010 the municipality had; Seven (7) Municipal Managers, Seven (7) Chief Finance Officers, Four (4) Technical Services Directors. The municipality was placed under Provincial Intervention Twice The municipality was placed under Full Administration during 2019

7. 4. SALARY DISPARITIES Disparities in salaries between the two erstwhile municipalities (former Fetakgomo and Former Greater Tubatse municipality) were addressed through the implementation of job evaluation. Employees with same job were placed on the same task grade but different notches resultant from job evaluation.

8. 5. MEDIA ISSUES 1. Purchase of Municipal Building Council has taken a decision to acquire building which the municipality occupied 10 years ago on rental basis. The agreed purchase price with the owner is R135 million of which the payment agreement was that the municipality pays deposit of R50m and the rest of the balance would be paid in 3 years at no interest. Which automatically turned the rental amount into a settlement of debt. The initial offer by the landlord to the municipality was R285 000 000, the municipality managed to successfully negotiate price downwards. The rental cost without ownership of the property for the past ten years amounted to R176 000 000, should the municipality continue with the rental lease for the next 10 years it was going to cost the municipality additional R255 000 000. Which means council was going to spend at least half a billion on a rental without ownership.

9. MEDIA ISSUES 2. Operation Mabone Mphaphuli Consulting / Fetakgomo Tubatse Municipality & Eskom Holding SOC Limited ; case no 6949/2019 The above is an action proceeding initiated by Mphaphuli Consulting herein refered to as Plaintiff against Fetakgomo Tubatse Municipality herein referred to as 1stDefendant , and Eskom Holding SOC Limited herein referred to as 2ndDefendant . The Plaintiff is claiming an amount of R9, 763. 850,89 of an unpaid invoices and had filed a Notice for Default Judgment in the High Court. The defendant filed a Condonation Application. The invoices that Plaintiff claimed the municipality does not want to pay cannot justify the work that was done. A preferential date was sought by the Plantiff s Attorneys as the matter was set down for 21 August 2021 for Argument and brought back to the 24 March 2021.

10. MEDIA ISSUES Subsequent to the above case, the Plaintiff made a further lawsuit of R500 million plus against the municipality claiming damages and loss of businesses as a results of non payment on project mabone. Claiming he lost contracts/ business in KZN an other areas. The matter is been defended in the high court . The SIU has conducted an investigation into the affairs of the municipality It has find Project Mabone as irregular and the total amount of R255 000 000 has been disclosed as irregular expenditure According to the same report the municipality has made overpayment of R76 000 000 to the service provider under Project Mabone and the SIU has taken the matter to Polokwane High Court for recovery

11. MEDIA ISSUES

12. 6. MATERIAL LITIGATIONS Amounts per AFS Comme nts Attorney Details of case MPHAPHULI VS FTLM// SIU The municipality received combined summons on the 15th June 2020 where Mphaphuli Consulting is the plaintiff claiming to have suffered Patrimonial loss, contractual and consequential damages. Tubatse Waste Management Consortium Vs Fetakgomo- Greater Tubatse Local Municipality& 02 Others The Plaintiff issued summon in respect of alleged damages incurred due to the cancellation of a tender. The plaintiff amended their summons and we have amended and filed our plea to their amended papers. We will proceed to file our discovery notices and discovery affidavit to have the matter move forward Category ML Mateme Inc 506 713 014,00 Contingent Liability None Vereveen Attorneys 366 022 288,00 Contingent Liability None

13. MATERIAL LITIGATIONS Puladitsela Consulting/FTM Puladitsela was appointed as Consulting Engineers for planning, Design and implementation of Electrification on several villages in the GTM.GTM alleges Plaintiff failed to comply with conditions of appointment and the matter has prescribed. Harlequinne Duck Properties vs. FTLM The Plaintiff is suing the Municipality for delictual damages allegedly suffered as result of Municipal failure to comply with the agreement to exchange properties entered into around 2009 for the amount of R 29 ,303,469,63. R478,321.47 was also claimed for loss of income. Continge nt Liability ML Mateme Inc 95 000 000,00 None Continge nt Liability Noko Maimela Inc 29 781 791,00 None. MPHAPHULI VS FTLM// ESKOM The municipality received summons from the complainant where they claim that the municipality is owing them monies. Continge nt Liability ML Mateme Inc 9 763 850,89 None 1 007 280 943,89 TOTAL

14. 7. VBS MATTER The Municipality has lost R230 Million actual capital investmentinto VBS mutual bank total inclusive of interests is R243 169 120.00 VERVEEN Attorneys isappointed by municipality tohandle the VBS claim for recovery Recent Communication from the Liquidator Regarding the Claim; 1. We received communication from the liquidator s team that the Master only furnished them with a copy of the Municipality s claim documents and that the liquidator requires the original claim affidavit and resolution or else our claim would be rejected by the liquidator. 2. The liquidator requested we obtain the original documents from the Master or resubmit new claim forms directly to the liquidator to avoid rejection of the claim. 3. We have made the necessary enquiries with the Master of the high Court and have to date not had any correspondence. We therefore, resubmitted new claim forms which included a claim form, certified copy of the council resolution and special power of attorney. 4. We successfully furnished the liquidator with the new claim forms who has accepted the documents as originals.

15. 8. AUDIT COMMITTEE 1. The municipality is currently having three (3) audit committee members with the following expertise: One member has Legal background and also appointed as the chairperson of the committee Two other member both qualified Chartered Accountants 2. The council has approved for the recruitment and appointment of two (2) additional Audit committee members, preferably specializing in Performance Management and Information Communication Technology. The committee will therefore constitute maximum of five (5) members after appointment of additional 2 members. 3. Shortlisting and Interviews for the 2 additional Audit committee members has been processed and finalised , awaiting council approval for appointment of successful candidates. 4. Audit and performance Committee meets quarterly as legislated. The committee already held Eight(8) meetings during the first and second quarter of the financial year.

16. AUDIT COMMITTEE 5. Audit and Performance Committee Meetings were scheduled and held as follows: First Quarter Audit Committee Meeting Performance Committee Meeting Special Audit Committee 16 July 2020 20 July 2020 28 October 2020 -Review of Annual Financial Statement( Final Draft) -Review of Annual Performance Report ( Final Draft) Audit Committee Meeting 22 October 2020 -Ordinary Audit committee reports -Review of Annual Financial Statement( 1st Draft) Performance Committee Meeting 23 October 2020 Second Quarter Audit Committee Meeting Performance Committee Meeting 25 January 2021 26 January 2021

17. AUDIT COMMITTEE 6. Audit and Performance committee reports to council on the progress on execution of internal audit annual plan, management action plan and all statutory reports on quarterly basis also when it is required to do so. 7. Audit and Performance Committee submitted their first and second quarter reports to council during October 2020 and January 2021

18. 9. RISK MANAGEMENT COMMITTEE 1. Risk Management Committee is chaired by an independent person appointed by council 2. The Committee consist of: Municipal Manager All directors Internal Audit other stakeholders ( Provincial Treasury, SALGA, COGHSTA) 3. The committee managed to hold 2 meetings , one during the 1st quarter of the financial year on the 16 October 2020 and the second one was held on the 27 January 2021 4. The chairperson of risk committee reports/ presents all risk related matters to the Audit committee on quarterly basis.

19. 10. MUNICIPAL PUBLIC ACCOUNTS COMMITTEE(MPAC) 1. MPAC consist of Eight (8) members , which are constituted as follows: 5 Members from ANC; 2 Members from EFF; and 1 Member from DA. 1 Official : MPAC Researcher 2. MPAC managed to hold eleven(11) meetings from July to December 2020 3. MPAC received four submissions from Council between the 01 July 2020 to end of 31 December 2020 on dates as follows: August 2020: Two Reports (2) October 2020: Two Reports (2) 4. The committee managed to submit only two reports to council during October 2020 and two are still pending.

20. 11. COUNCIL STRUCTURES MEETINGS 1. Municipal council structures managed to hold meetings from July to December 2020 as follows: DESCRIPTION NUMBER OF MEETINGS 04 Ordinary meetings 13 special meetings EXCO Meetings Portfolio committee meetings Community Services = 6 meetings Budget & Treasury = 6 meetings Development Planning = 4 meetings Corporate Services = 6 meetings Technical Services = 1 meeting Rules Ethics Public Participation = 3 meetings LEDT = 5 meetings 2 Ordinary meetings 8 Special Meetings Council Meetings

21. 12. IMPLEMENTATION OF THE POST AUDIT ACTION PLAN (PAAP) FTLM retained qualified audit opinion in 2018/19. 100% of the action plan were addressed by 31 October 2020 (before the commencement of the Audit) All the issues were discussed in the Audit Steering Committee furthermore all issues were escalated to Audit committee and other stakeholders. The status on Audit action plan implementation was submitted to Provincial Treasury on an ongoing basis. The matters resolved were audited by Internal audit unit for review on completeness, accuracy and validity. Steering committee consists of all senior managers including key managers as well as National Treasury municipal advisor. MMC responsible for Finance was playing political oversight on the implementation of PAAP.

22. 12.1. SUMMARY OF MAIN ISSUES THAT AFFECTED AUDIT OPINION Property plant and equipment Land not accounted in the financial statements Consumers debtors from non-exchange transactions Consumers debtors from exchange transactions Revenue from non-exchange transactions Expenditure Irregular expenditure Commitments Contingent liabilities Contingent assets

23. 12.2. SUMMARY OF STATUS ON PAAP Reviewed by Internal Audit Yes Yes Yes in progress Yes in progress Yes Yes Yes In progress In progress # Status Total Resolved % Resolved 1 2 3 4 5 6 7 8 9 10 11 Revenue Expenditure Financial Reporting Legal Services Budget Human resources Other disclosure Assets SCM IT AOPO 10 14 3 5 3 3 3 5 18 15 16 10 14 3 5 3 3 3 5 18 15 16 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 12 Infrastructure (Technical) 8 8 100% in progress

24. 12.3. CURRENT YEAR AUDIT PROGRESS 2019/2020 Request for Information Status Submitted 63% Total # of RFIs raised 94 RFIs submitted 59 RFIs not submitted/partially submitted 35

25. 12.4. CURRENT YEAR AUDIT PROGRESS 2019/2020 Summary of the Communication of Finding Submitted Responses is at 78% Summary as at 12 March 2021 Total COMAFs Issued 57 Total Findings in Issued COMAFs 90 Received Responses Received After 3 days Received Within 3 days 70 34 36 Outstanding Responses Over-Due Not Yet Due 20 6 14 Status of Findings Resolved Not Resolved 49 11 38

26. 12.5. AUDIT OUTCOMES FROM PREVIOUS 3 FINANCIAL YEARS 2016/17 2017/18 2018/19 Projected Outcome for 2019/20 Qualification Qualification Qualification Audit in progress

27. 13. COVID19 PROCUREMENT & EXPENDITURE FROM 1 MARCH 2020 DECEMBER 2020 ITEM Protective clothing (other general workers not only health workers) General - Other Chemical Toilets Feeding of Homeless/ Food distribution Security Provision for Homeless Cost of Screening and Testing Gloves, sterile Goggles/ Face-shield/Viser Sanitizer Mask Decontamination of affected premises TOTAL AMOUNT R18 750 R1 102 585 R29 400 R1 903 R286 392 R15 243 R116 920 R11 000 R3 200 R755 420 R350 066 R1 111 772 R3 802 651

28. 13.1. INTERNAL CONTROLS IMPLEMENTATED ON COVID 19 EXPENDITURE The procurement of COVID 19 item - March to 20 April 2020 was on emergency procurement (deviation). Needs analysis for COVID 19 were sanctioned by COVID 19 technical committee Deviations on COVID 19 expenditure were approved by accounting officer in line with circular 100 All the deviations were included in the Annual Financial statements National Treasury price list were utilised on procurement of COVID related expenditure as per circular 100 The procurement of COVID 19 items from 21 April 2020 to date was through utilisation of municipal panel of COVID 19 suppliers, only when services are needed COVID 19 expenditures are reported to Provincial Treasury on weekly basis, to Audit Committee and to Council on quarterly basis for oversight

29. 14. COLLECTION RATE FOR PERIOD JULY 2019 TO FEBRUARY 2020 LEVIES(REFUSE &PROPERTY RATES) vs AND PAYMENTS FOR THE PERIOD JULY 2019 TO FEBRUARY 2020 COLLECTION RATE 18.55 70.49 31.68 74.54 56.77 13.97 59.16 57.91 AMOUNT BILLED(R M) R 26 993 763 R 12 645 791 R 12 805 968 R 12 833 955 R 12 975 741 R 13 032 938 R 13 108 430 R 13 104 926 PERIOD JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY PAYMENTS R 5 006 607 R 8 913 412 R 4 057 354 R 9 566 993 R 7 365 698 R 1 820 126 R 7 754 572 R 7 589 115 GRAND TOTAL R 117 501 516 R 52 073 881 44.32

30. 14.1. COLLECTION RATE FOR PERIOD MARCH 2020 TO DECEMBER 2020 LEVIES ( REFUSE & PROPERTY RATES )vs PAYMENTS FOR THE PERIOD MARCH 2020 TO DECEMBER 2020 (Accrual Basis) COLLECTION RATE PERIOD MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER AMOUNT BILLED (Rm) R 13 152 466 R 12 536 614 R 12 581 419 R 12 454 215 R 26 773 598 R 12 505 324 R 12 625 646 R 12 657 801 PAYMENTS R 4 796 344 R 5 946 204 R 3 116 155 R 7 314 258 R 6 219 808 R 7 703 010 R 6 255 567 R 8 501 738 37% 47% 25% 60% 23% 62% 50% 67% NOVEMBER R 11 975 832 R 9 545 304 80% DECEMBER R 11 988 852 R 7 019 302 60% 47% ( July 2020 December 2020 Average 68%) GRAND TOTAL R 139 255 722 R 65 200 747

31. 14.2. CASH REVENUE RECEIVED ON TRAFFIC & LICENCING INCOME FROM MARCH TO DECEMBER 2020 BUDGETED VS CASH RECEIVED BUDGETED AMOUNT BILLED R 273 365 R3 466 232 ACTUAL RECEIVED R 185 207 DESCRIPTION March to June Traffic Fines March to June Licencing Income % CASH RECEIVED 68% R 1 398 068 40% R1 704 073 July to December Traffic Fines July to December Licencing Income R 9 300 R 1 648 645 0.6% 20% R 8 264 353 GRAND TOTAL R13 708 023 R3 241 220 24%

32. 14.3. LIQUIDITY RATIO & CASH COVERAGE Ratio Norm 2017/18 Audited -1.2 2018/19 Audited 0.9 2020/21 Pre audited 3.7 Months 1 3 months Cash/coverage 1:5 2:1 0.45 0.79 3.6 Current ratios

33. 14.4. ROOT CAUSES FOR LOW COLLECTION Non adherence to debt collection and credit control policy Incorrect billing Lack of integrity on customer data Lack of revenue enhancement strategy COVID 19 impact on consumers Ineffective customer care solution which is linked to revenue such as non existence of indigent register etc.

34. 14.5. STRATEGIES ON OPTIMISATION OF REVENUE COLLECTION Handover of customers that are owing the municipality above 90 days to debt collectors Enforcement of credit control through issuing of defaulting notices as well as early warnings through SMSs to customers that are in default. Mapping of top 100 customers Issuing of monthly bills on time through manual & electronic platform Immediate handling of customer complains through customer care centre Implementation of Know Your Client on big customers Commissioning of data integrity including alignment of indigent register Tariffs were reviewed to cover the cost of operation Review and updating of valuation roll on an ongoing basis Full implementation of revenue enhancement strategy

35. 15. IRREGULAR EXPENDITURE MUNICIPALITY AMOUNT R 487 225 830,00 Closing balance 2018/19 (as per audited) Add: Irregular expenditure 2019/20 (unaudited AFS) R 164 858 947,00 R 909 566,00 Less: Written off (Q1: July to September 2020) Closing balance R 651 175 211

36. 15.1. BREAKDOWN OF UIFW 2017/18 Restated R 193 694 565 R 37 075 817 R 300 893 769 2018/19 Restated R293 531 266 (R 5 201 286.00 ) R 4 087 039 2019/20 20 R165 995 979 R 10 183 856 R42 058 387 R 25 508 310R 29 595 349 UIFW TOTAL R653 221 810 Irregular Expenditure Fruitless & Wasteful Expenditure Unathorised Expenditure NB: Fruitless & Wasteful Expenditure was written of during 2018/19 Financial year Unathorised expenditure amounting to R 300 893769 was written off during 2018/19 FY

37. 15.2. F&WE - FRUITLESS AND WASTEFUL EXPENDITURE MUNICIPALITY Amount Closing balance 2018/19 ( as per audited AFS) Add: Fruitless and wasteful expenditure 2019/20 (unaudited AFS) Add: Fruitless and wasteful expenditure (Q1: July to September 2020) Add: Fruitless and wasteful expenditure (Q2: October to December 2020) 31 874 531,00 10 183 856,00 79 424,10 15 197,98 Closing balance R 42 058 387

38. 15.3. UNAUTHORISED EXPENDITURE MUNICIPALITY AMOUNT Closing balance 2018/19 ( as per audited AFS) Add: unauthorised expenditure 2019/20 (unaudited AFS) Add: unauthorised expenditure (Q1: July to September 2020) Add: Unauthorised (Q2: October to December 2020) R 4 087 039 R 25 508 310 R 0 R0 Closing balance R 29 595 349

39. 15.5. ROOT CAUSES OF UIFW Non compliance to SCM regulation, policy and related legislation Non adherence to contract management practice or principles Incorrect application for section 32 on SCM regulation - Implementation of Project Mabone Incorrect management of contract variation and expansion under provision of non cash items such as depreciation and bad debts write- off Interest charged as a result of late payment of suppliers Poor project management which result into impairment of newly completed project.

40. 15.6. INTERVENTIONS & STRATEGIES TO REDUCE UIFW EXPENDITURE Implementation of due diligence on all tenders before award Monitoring of spending versus budget Adequate provision for non cash items such as Depreciation and debt Impairment Training of SCM officials, Management and Council on SCM policies and regulations. MPAC to investigate UIF&W expenditures and provide recommendations to council quarterly Training of Bid committees and role players SLA monitoring on an ongoing basis Implementation of compliance check list on all suppliers before payment can be made Effective implementation of electronic contract management system Effective monitoring of the UIF&W register and deviation register Utilisation of triplicate receipt book to monitor incoming suppliers invoices

41. 15.7. CONSEQUENCE MANAGEMENT I.R.O UIFW Cash lost during handling by cashiers has been recovered Potential blacklisting of defaulters ( suppliers) The implicated official on Operation Mabone has been referred to NPA since is no longer the employee of the municipality. VBS matter still under investigation by Hawks The UIF expenditure has been referred to forensic Audit for further investigation

42. 16. USE OF CONSULTANTS Municipality has co-sourced the service of the external firm to assist with the technical preparation and support on Annual Financial Statements, the total budget is R2500 000 00 Municipality has established a newly formed unit in Budget and Treasury to deal with financial reporting and currently there is only one official working in the unit. Municipality through organisational review will add additional positions in the reporting unit as part of creating internal capacity

43. 17. CONDITIONAL GRANT PERFORMANCE Budget 2019/2020 Outco me as % Original Outcom e as % Adjuste d Original Budget Adjusted Budget Audited Outcome Reason for under performance Description Expanded Public Works Programme Integrated Grant Local Government Financial Management Grant Integrated National Electrification Programme Municipal Infrastructure Grant [Schedule 5B] 1 786 000 1 786 000 1 786 000 100% 100% None 3 000 000 3 000 000 3 000 000 100% 100% None Late appointment of contractors Late appointment of contractors Late appointment of contractors 10 000 000 10 000 000 10 000 000 100% 100% 84 369 000 84 369 000 55 099 943 65% 65% Distressed Mining Town Grant 50 236 700 50 236 700 21 979 402 44% 44% Municipal Disaster Relief 0 596000 596 000 0% 100% None

44. 17.1. CONDITIONAL GRANT PERFORMANCE 2020/2021 SUMMARY - 2020/2021 CONDITIONAL GRANTS PERFORMANCE Actual expenditure by municipalitie s % expendit ure against DORA % expenditu re against transferre d YTD expenditur e by municipaliti es Rollover approve d 2019/20 Division of revenue Act Transferred to Municipalities Name of Grant Expanded Public Works Programme Integrated Grant Local Government Financial Management Grant Municipal Infrastructure Grant [Schedule 5B] Distressed Mining Town Grant 1 052 000 263 000 810 346 77% 308% N/A N/A 2 500 000 2 500 000 1 734 242 69% 69% N/A 29 269 543 28 257 298 N/A 2 83 797 000 49 297 000 32 461 107 39% 66% 167 000 8 - - - - 032 000

45. 18. FUNDING MEASUREMENT 2020/21 Medium Term Revenue & Expenditure Framework Budget Year 2020/21 +1 2021/22 Current Year 2019/20 Description Original Budget Adjusted Budget Full Year Forecast Pre-audit outcome Budget Year Budget Year +2 2022/23 Total Operating Revenue Total Operating Expenditure Operating Performance Surplus/(Deficit) Grant Funding % of Total Funding 711 458 388 651 043 337 651 043 337 554 398 791 697 065 065 747 681 048 795 920 887 576 104 266 616 559 950 616 559 950 280 618 749 643 759 713 677 306 123 745 949 229 135 354 122 34 483 387 34 483 387 273 780 043 53 305 352 70 374 925 49 971 658 61% 73% 73% 81% 58% 68% 66% Total Operating Revenue Total Operating Expenditure Surplus/(Deficit) Budgeted Operating Statement Surplus/(Deficit) Considering Reserves and Cash Backing MTREF Funded (1) / Unfunded (0) 711 458 388 651 043 337 651 043 337 554 398 791 697 065 065 747 681 048 795 920 887 576 104 266 616 559 950 616 559 950 280 618 749 643 759 713 677 306 123 745 949 229 135 354 122 34 483 387 34 483 387 273 780 043 53 305 352 70 374 925 49 971 658 430 647 364 108 787 125 108 787 125 118 590 744 58 016 939 88 418 406 92 486 602 - 1 1 1 1 1 1

46. 19. CURRENT MIG PROJECTS PERFORMANCE Project Name Nation al Projec t Numb er Actu al Start Date Antici pated Compl etion Date MIG Regis tered Fund s 000 Budgeted MIG Funds 2020/21 FY Accumula tive Expenditu re Remarks 2020/21 FY The project is at 46% to date. 6km roadbed and 3km selected layer complete, Busy with repairs of 6km sub base which was damaged by heavy rains. The project is on hold due to court order interdict R 51,43 7m Leboeng Access Road - Phase 2 MIG/LP/2166 /R,ST/16/18 R 34,137,918.83 R 9, 559,434.35 25/03/2020 25/06/2021 MIG/LP/2286 /R,ST/18/21 Magakala Access Bridge and Access Road Phase 2 14/1 2/20 20 R 54,70 2m 15/12/2 021 R 40,498,129.58 R 4 886 273.73 The project is on hold due to court order interdict MIG/R /LP/15 872/18 /21 R 44,46 0m Mashung Internal Street 14/12/2020 15/12/2021 R 4,971,101.59 R 2 102 110.64

47. 20. SERVICE DELIVERY MIDYEAR (July to December 2020) PERFORMANCE (SDBIP 2020/2021) 1. The municipality has 61 Institutional indicators reportable in the first half of the 2020/21 financial year. By the end of the semester the municipality achieved 28(46%) of its 61 indicators. This brings the overall performance of the municipality to 46% in the first half of the 2020/21 financial year. KPA 2019/20 2020/21 Mid Year targets 11 6 Target achieved Target not achieved % - Performance KPA 01: Spatial Rational KPA 02: Institutional Development and Transformation KPA 03: Basic Service Delivery and Infrastructure Development KPA 04: Local Development KPA 05: Financial Viability and Management KPA 06: Good Governance and Public Participation Total 22% 57% 2 3 9 3 18% 50% Organizational 63% 8 2 6 25% Economic 56% 8 2 6 25% 60% 11 10 1 91% 44% 17 9 8 53% 48% 61 28 33 46%

48. 21. SPLUMA COMPLIANCE AND IMPLEMENTATION ITEM STATUS COMPLETION DATE Land Use Management By-law, 2018 Completed 2018 Spatial Development Framework, 2020 Completed 2020 Wall To Wall Land Use Scheme, 2021 Awaiting Proclamation 2021 Authorised Official Municipal Planning Tribunal (JDMPT) Municipal Planning Appeal Authority In Place In Place Awaiting Appointment

49. THANK YOU