Progress Report on Amalgamation of City of Mbombela Local Municipality

Municipal boundary demarcations in 2013 led to the amalgamation of Umjindi and Mbombela Local Municipalities for financial viability and improved governance. This report assesses performance, governance, services, financial management, public participation, and sustainability, highlighting the objectives and outcomes of the amalgamation process.

• Progress Report
• City of Mbombela
• Local Municipality
• Amalgamation
• Governance

amani Follow

Uploaded on Aug 11, 2024 | 0 Views

Download Presentation

Please find below an Image/Link to download the presentation.

The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.

Presentation Transcript

1. WHEN THE SUN RISES WE WORK HARD TO DELIVER PROGRESS REPORT ON THE AMALGAMATION OF CITY OF MOMBELA LOCAL MUNICIPALITY: 13 NOVEMBER 2020 1

2. TABLE OF CONTENT TABLE OF CONTENT 1. Introduction 2. Background 3. Analysis of performance of municipalities pre and post amalgamation 4. Discussion: 4.1. Good Governance 4.2. Basic Services 4.3. Financial Management 4.4. Public Participation 4.5. Building Capable Institutions 5. Assessment on the Sustainability of the Amalgamated City of Mbombela Local Municipality 6. Conclusion 2

3. INTRODUCTION INTRODUCTION Municipal boundary demarcations were finalized in 2013 for voting districts and voters rolls to be prepared for the 2014 National and Provincial elections and for wards to be delimited for 2016 Local Government Elections. Our assessment on the performance of municipalities indicated that there were municipalities that were dysfunctional and non-viable. Contributing factors were size, population and unemployment rates in these municipalities. After consultation with the relevant stakeholders, a submission was made to the Minister responsible for Cooperative Governance and Traditional Affairs on the proposed changes/amalgamations The Minister responsible for Co-operative Governance and Traditional Affairs requested the Demarcation Board in terms of Section 22(2) of the Local Government: Municipal Demarcation Act (Act No. 27 of 1998) to determine or re-determine municipal boundaries of dysfunctional and non viable municipalities with a view of optimizing the financial viability of such municipalities. 3

4. INTRODUCTION.. INTRODUCTION..cont cont.. .. In terms of Section 24 of the Local Government: Municipal Demarcation Act (Act No. 27 of 1998) the objectives of the Demarcation Board when demarcating a municipal boundary, is to establish an area that would: Enable the municipality for that area to fulfill in Constitutional obligations as outlined in Section 152 of the Constitution of the Republic of South Africa; Enable effective local governance; Enable integrated development; and Have a tax base as inclusive as possible of users of municipal services in the municipality Our submission was to amalgamate Umjindi Local Municipality (MP323) and Mbombela Local Municipality (MP302) with the view to optimising the financial viability, improve service delivery and sound municipal governance of the new municipality. 4

5. BACKGROUND BACKGROUND The amalgamation of former Umjindi and erstwhile Mbombela Local Municipalities was ushered in after local government elections in 2016. This was after the final decision of the Municipal Demarcations Board (MDB) which re-determined some municipalities into amalgamated entities. The purpose of the amalgamation was to give effect to the financial viability of the two former municipalities and as a catalyst of effective and efficient delivery of basic services to the people. Before the amalgamation, the former Umjindi Local Municipality had 18 councillors and former Mbombela Local Municipality had 78 councillors. After the amalgamation,the City Of Mbombela Local Municipality had 90 councillors. The merger of Mbombela and Umjindi Local Municipalities was the only proposal from the Province out of 10 that were approved by the MDB. The approval was guided by Section 24 and 25 of the Municipal Demarcation Act (Act No. 27 of 1998) and Section 2 of the Municipal Structures Act (Act No.117 of 1998). A final decision was communicated to all stakeholders concerned and was also published in the Provincial Gazette. 5

6. ANALYSIS OF PERFORMANCE OF MUNICIPALITIES ANALYSIS OF PERFORMANCE OF MUNICIPALITIES PRE AND POST AMALGAMATION PRE AND POST AMALGAMATION 6

7. GOOD GOVERNANCE GOOD GOVERNANCE 7

8. DEMOGRAPHIC PROFILE DEMOGRAPHIC PROFILE Population 2015/16 % of District Households as per STATS SA 2011 % of District Households 2016 General Household survey Municipality % of District Umjindi Local Municipality 67 156 4.1% 19 563 5% 23 702 5% Mbombela Local Municipality 588 794 35% 161 773 36% 181 794 37.5% Post Amalgamation: City of Mbombela Local Municipality 655 950 39.1% 181 336 40% 205 496 42.5% Analysis There has been an increase of 24 160 households as per the 2016 general household survey and this equates to 2.5% 8

9. GOOD GOVERNANCE GOOD GOVERNANCE Municipality Activities Status Pre-amalgamation 2015/16 Status Post amalgamation 2017/18 City of Mbombela (COM) Troika met frequently with good relations Council sits as per legislative requirements. Umjindi Local Municipality Political stability Troika met frequently with good relations Council sat as per legislative requirements S79 and S80 Committees were functional S79 committees have been established and for S80 Committees the municipality is using the cluster governance model Mbombela Local Municipality Political stability Troika met frequently with good relations Council sat as per legislative requirements 9

10. GOOD GOVERNANCE GOOD GOVERNANCE Municipality Activities Status Pre-amalgamation 2015/16 Status Post amalgamation 2017/18 Umjindi Local Municipality Oversight Committees Sec 79 & 80 Committees were functional MPAC was functional Audit committee was functional The municipality only had S79 Committees. The S80 Committees were replaced by the cluster governance model MPAC is functional Audit committee is functional Mbombela Local Municipality Oversight Committees The municipality only had S79 Committees. The S80 Committees were replaced by the cluster governance model MPAC was functional Audit committee was functional 10

11. GOOD GOVERNANCE GOOD GOVERNANCE Analysis There was political stability in the former Umjindi and Mbombela Local Municipalities, as well as the City of Mbombela. Umjindi Local Municipality had S79 & S80 committees and Mbombela Local Municipality only had S79 committee. City of Mbombela Local Municipality preferred to use the cluster approach for its S80 committees. Council sat as per legislative requirements both in former Umjindi /Mbombela Local Municipalities and continues to do so in the City of Mbombela Local Municipality. Over the past two years the municipality has experienced sporadic unrests with communities not being satisfied with the provision of basic services. The finance/budget related by-laws have all been adopted by Council in line with the 2020/2021 IDP and Budget. Other policies have been reviewed and approved by Council on an ad hoc but ongoing process. Post COVID-19, a number of policies will be workshopped to the councillors and submitted for approval. The plan is to have all policies completed and approved by the end of the 4th Quarter depending on the possibility of the workshops taking place as planned. The communication strategies of both municipalities were rationalised and adopted by the new Council A new branding was done for the City of Mbombela Local Municipality. . A fully fledged call centre was established and situated at the Head Office Traditional leaders were merged. Mbombela Local Municipality had 9 and Umjindi Local Municipality had 1. The new municipality has 10 Traditional leaders. 11

12. BASIC SERVICES BASIC SERVICES 12

13. BASIC SERVICES : WATER PROVISION BASIC SERVICES : WATER PROVISION Municipality Activities Households Access Percentage Umjindi Local Municipality 2015/16 Access to potable water 23 702 21 141 89.20% Mbombela Local Municipality 2015/16 Access to potable water 181 794 140 782 77.44% Post Amalgamation: City of Mbombela Local Municipality 2017/18 Access to potable water 205 496 181 366 88.26% 13

14. BASIC SERVICES : ACCESS TO SANITATION BASIC SERVICES : ACCESS TO SANITATION Municipality Activities Households Access Percentage Umjindi Local Municipality 2015/16 Access to sanitation 23 702 22 520 95.05% Mbombela Local Municipality 2015/16 Access to sanitation 181 794 174 715 96.11% Post Amalgamation: City of Mbombela Local Municipality 2017/18 Access to sanitation 205 496 197 325 96.02% 14

15. BASIC SERVICES: ACCESS TO ELECTRICITY BASIC SERVICES: ACCESS TO ELECTRICITY Municipality Activities Households Access Percentage Umjindi Local Municipality 2015/16 Access to potable electricity 23 702 21 102 89.03% Mbombela Local Municipality 2015/16 Access to potable electricity 181 794 175 378 96.47% Post Amalgamation: City of Mbombela Local Municipality 2017/18 Access to potable electricity 205 496 198 724 96.70% 15

16. MIG EXPENDITURE MIG EXPENDITURE Municipality Activities Status Pre-amalgamation 2015/16 Status Post amalgamation 2017/18 Umjindi Local Municipality MIG allocation and expenditure MIG allocation R40.65M and expenditure R40.65 (100%) MIG allocation R339 939M and expenditure R329 232M (97%) Mbombela Local Municipality MIG allocation and expenditure MIG allocation R298.26M and expenditure R260.67M(87%) 16

17. SPATIAL RATIONALE SPATIAL RATIONALE Municipality Activities Status Pre-amalgamation 2015/16 Status Post amalgamation 2017/18 Umjindi Local Municipality SDF SDF was approved and implemented SDF was approved and implemented Municipality is in the process to prepare SPLUMA-Land Use Scheme SPLUMA The municipality failed to adopt delegation on SPLUMA functions Mbombela Local Municipality SDF SDF was approved and implemented SPLUMA The municipality was ready to implement SPLUMA 17

18. LOCAL ECONOMIC DEVELOPMENT LOCAL ECONOMIC DEVELOPMENT Municipality Activities Status Pre-amalgamation 2015/16 Status Post amalgamation 2017/18 Umjindi Local Municipality LED No LED Strategy LED Stakeholder forum was not in place The City of Mbombela has a draft LED Strategy and LED Stakeholder forum was functional The municipality has 8 co-operatives and 14 youth enterprises to create economic opportunities Mbombela Local Municipality LED Reviewed and implemented the LED Strategy LED Stakeholder forum was functional 18

19. BASIC SERVICES BASIC SERVICES Analysis The average access to water in 2015/16 was 83.32% for the former Umjindi and Mbombela Local Municipalities compared to 88.26% for City of Mbombela Local Municipality in 2017/18. This shows an increase of 4.94% on access to potable water. The average access to sanitation in 2015/16 was 95.58% for the former Umjindi and Mbombela Local Municipalities compared to 96.02% for City of Mbombela Local Municipality in 2017/18. This shows an increase of 0.44% on access to sanitation The average access to electricity in 2015/16 was 92.75% for the former Umjindi and Mbombela Local Municipalities compared to 96.70% for the City of Mbombela Local Municipality in 2017/18. This shows an increase of 3.95% on access to electricity The former Umjindi Local Municipality spent 100% (R40.65M) and Mbombela Local Municipality 87% (260.67M) in 2015/16 financial year of their MIG allocation respectively. The City of Mbombela Local Municipality spent 97%(232M) in the 2017/18 financial year. Umjindi and Mbombela Local Municipalities had separate Tribunals before the amalgamation and have since established a single Tribunal. The municipality has a functional LED stakeholder forum that includes the representatives of from the Umjindi area. The LED strategy focuses on all areas of the former municipalities. The LED strategy for the City of Mbombela Local Municipality is not approved and is still a draft. Makhonjwa Mountain listed as a World Heritage Site by UNESCO IDPs for both entities were merged to form one IDP. Process plan has been approved by Council. The IDP for 2020/21 has been adopted and is currently being implemented. All projects that were started prior the amalgamation have been completed and are operational. 19

20. FINANCIAL MANAGEMENT FINANCIAL MANAGEMENT 20

21. FINANCIAL MANAGEMENT Municipality Activities Status Pre-amalgamation 2015/16 Status Post amalgamation 2017/18 Umjindi LM Audit outcomes 2015/16 Unqualified 2017/18 Unqualified Mbombela LM Audit outcomes 2015/16 Unqualified 21

22. FINANCIAL MANAGEMENT MUNICIPALITY ACTIVITY GRADE GROSS INCOME Umjindi Local Municipality 2015/16 UPPER LIMITS 3 165 217 171 Mbombela Local Municipality 2015/16 5 1 253 818 018 Post amalgamation: City of Mbombela 2017/18 5 1 454 905 230 22

23. FINANCIAL MANAGEMENT FINANCIAL MANAGEMENT Analysis The audit outcome has remained unchanged since 2015/16 to 2017/18 financial years. The Municipal Demarcation Transitional Grant ( MDTG) was provided to the municipality to facilitate the integration of systems Inaccurate billing system still persist in the City Of Mbombela Low consumer payment rate by township and rural communities 23

24. PUBLIC PARTICIPATION PUBLIC PARTICIPATION 24

25. PUBLIC PARTICIPATION PUBLIC PARTICIPATION Municipality Activities Status Pre-amalgamation 2015/16 Status Post amalgamation 2017/18 Umjindi Local Municipality Ward committees All 9 wards were functional There is an improvement in the functionality of wards, 35 out of 45 wards were functional Mbombela Local Municipality Ward committees 18 out of 39 Wards were functional 25

26. PUBLIC PARTICIPATION Analysis Public participation structures and mechanisms are in place, except the non establishment of ward committee at ward 26 High number of functional Ward committees. Traditional leaders are participating in municipal processes. War rooms have been established to improve public participation. 51 CDWs are currently employed in the City of Mbombela Local Municipality with 7 vacancies 26

27. BUILDING CAPABLE INSTITUTIONS BUILDING CAPABLE INSTITUTIONS 27

28. BUILDING CAPABLE INSTITUTIONS BUILDING CAPABLE INSTITUTIONS Municipality Activities Status Pre-amalgamation 2015/16 Status Post amalgamation 2017/18 Umjindi LM No. of approved S57 posts 7 posts of which non were filled by females 15 approved posts of which 2 were filled by females. Employment of People with disabilities 3 people with disabilities employed 10 posts filled by people with disabilities Mbombela LM No. of approved S57 posts 8 posts of which 2 were filled by females Employment of People with disabilities 6 people with disabilities employed 28

29. BUILDING CAPABLE INSTITUTIONS Analysis The amalgamation of the two municipalities resulted in the City of Mbombela Local Municipality having satellite centres which improved the coordination of service delivery GIZ supported the municipality in the development of a single organogram aligned to the IDP and SDBIP The process on the placement of all staff from the two former municipalities was concluded The organisational structure was approved on 29/05/2019. There are 5207 posts, 1961 are filled and 3246 are vacant. Number of males 1227, females 734, youth 438, disabled 10 The municipality has a challenge in the implementation of Employment Equity Plan. Only two senior managers are female out of 15 managers. 29

30. ASSESSMENT ASSESSMENT ON ON THE THE SUSTAINABILITY SUSTAINABILITY OF OF THE THE AMALGAMATED AMALGAMATED CITY CITY OF OF MBOMBELA MBOMBELA There is political stability in the municipality Public participation structures and mechanisms are in place, except the non establishment of a ward committee at ward 26 There is administrative stability in the municipality but the two deputy municipal managers positions must be abolished. In February 2020, there were community protests in the Umjindi area. Amongst the issues raised by residents were poor service delivery, lack of economic opportunities and that they wanted their area to be a stand alone municipality again (Umjindi Local Municipality ).The MEC wrote to the MDB on this matter and responded that it can only be looked at after the 2021 local government elections. Water scarcity in the rural communities Sporadic mushrooming of informal settlements No spatial developmental growth on the periphery of the inner city No tangible job creation Unemployment, poverty and inequality has increased due to COVID 19 pandemic 30

31. CONCLUSION CONCLUSION The amalgamation process has not yield the desired results. COGTA and other relevant stakeholders to continue supporting the municipality. The municipality to develop a turn around plan to address all the issues highlighted under the sustainability assessment. Communities in the City of Mbombela Local Municipality continue to protest against poor service delivery 31

32. Thank You 32