Common INTERVENTIONS KWAZULU-NATAL Report to the Select Committee on Local Government 04 March 2008 .

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CONTENT. PurposeReport on New InterventionsAmajuba
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Common INTERVENTIONS KWAZULU-NATAL Report to the Select Committee on Local Government 04 March 2008

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CONTENT Purpose Report on New Interventions Amajuba & Umzinyathi Districts and Newcastle Local Municipalities Impendle Local Municipality Greater Kokstad Municipality Progress Report Emadlangeni Municipality Abaqulusi Municipality Background Status

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PURPOSE To give the Select Committee a write about mediations by the Provincial Executive of KwaZulu-Natal in Municipalities as far as Section 139 of the Constitution Five intercessions

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Amajuba & Umzinyathi Districts and Newcastle Local Municipalities

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BACKGROUND On 5 December 2007 the Provincial Executive Council set out to intercede as far as segment 139(1)(b) of the Constitution in the Amajuba District, the Umzinyathi District and the Newcastle Local Municipalities and to accept the accountability for their regions\' water benefit expert capacities.

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REASONS Long exceptional determination of issues brought up in a legal examination Lack of responsibility by parent regions to address discoveries Community disappointment with administration conveyance Allegations of maladministration, extortion and defilement Non-consistence with different authoritative goals MFMA: Non-accommodation of AFS MFMA: Transfer of Assets & Liabilities M Systems Act: Provisions identified with city substances Companies Act: Registration and so on. Disjuncture between parent regions and the element Budgets Reporting Communication Shareholder and Board basic leadership

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MEC MANDATE Appoint a multi-disciplinary errand group of authorities to embrace a scientific examination and an extensive evaluation of the operations, administration and accounts of uThukela Water (Pty) Ltd. Attempt the segment 78 appraisals in the individual districts and to get ready suggestions for the future arrangement of essential water supplies to the particular groups. Attempt any activities important to guarantee the arrangement of essential water supplies to the groups of the individual water administrations specialists. Select a multi-disciplinary errand group of pros to oversee uThukela Water (Pty) Ltd pending the result of the above appraisals. Suspend or review all Directors of uThukela Water (Pty) Ltd as pondered in the Local Government: Municipal Systems Act, 2000 as essential. In the execution of the above command the MEC is to guarantee the reception and usage of results by the three water administrations specialists and should likewise devise an exit and handover system to the future water administrations supplier as decided through the intercession.

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INTERVENTION ACTIVITIES Meeting with WSAs: 29 February 2008 Meeting with Board of Directors: 03 March 2008 Appointment of Administrator, Mr D Naidoo of Umgeni Water, to play out the elements of the Board of Directors according to segment 93H of the Municipal Systems Act. Specialized Support by Mr Frank Stevens of eThekwini Metro in the administration of uThukela Water (Pty) Ltd, to guarantee benefit conveyance, and to do an appraisal of the operational structures, strategies, frameworks and arrangements of the substance. Ngubane & Co have been selected as the favored specialist co-op, to do the execution audit and measurable examination initially expected by the parent regions.

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OBJECTIVES OF PERFORMANCE REVIEW & FORENSIC INVESTIGATION Undertake an execution audit regarding area 93C of the Municipal Systems Act read in conjunction with segment 87(5)(d) of the Municipal Finance Management Act.  This survey is important to decide the execution of the substance against its goals and indicators.  Evaluate the monetary circumstance and moves made by the Board to rectify the budgetary circumstance to set up move to be made as far as segment 109 of the MFMA.  Consider the yearly spending plans put together by UThukela Water, (the city element), to parent Municipalities taking perception of builds thereto in connection to the change or augmentation of water administrations with a view to looking into whether the initially expected economies of scale were being acknowledged or not. To review and survey general consistence with the administrative and approach prescripts which may indicate conceivable maladministration or non-execution, for example, the non-accommodation of yearly money related explanations for examining to the Auditor-General since the foundation of the element subsequently of which the Auditor General has been issuing qualified reports to the parent districts. To examine various issues which originated from the principal legal to figure out if suggestions have been actualized. To examine certain particular new issues.

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SCOPE OF PERFORMANCE REVIEW To survey the business structure through the evaluation of the current lawful status, type of hierarchical structure, staffing, other statutory status and its constitutions [Memorandum and Articles of the Association]. To audit institutional courses of action and connections and answering to the parent regions through an evaluation of all agreements and duties by gatherings. To audit the business\' money related wellbeing in view of a definite examination of budgetary data including spending plans, explanations, reports to the top managerial staff and an investigation of the current resource base. Survey execution with respect to current income and money related status/manageability of UTW. Check and affirm resources, liabilities, income and use of the substance and the capacity of the element to meet installment commitments. The future capability of the business reflected in the qualities of its administration conveyance and the likelihood of diminished monetary weight with respect to the parent districts over the medium-to long haul. To audit the instruments for administration conveyance including the nitty gritty evaluation in regards to the parts, capacities, impact and esteem included by any outside specialist organizations to the element, their part in the association and incorporating assentions finished up with them. To survey the levy identified with the consistence of the norm with the targets of SP2030 and the first marketable strategy submitted to DWAF in 2004 [Shareholders Meeting No. 7 dated 09 December 2004]. The consistence with laws and controls administering the city element: the MFMA, the Companies Act, the Municipal Systems Act and the PFMA have nitty gritty consistence issues which the substance must conform to. Check and report the degree to which such prerequisites have been met, which will incorporate the survey of the minutes of the governing body. Such appraisal ought to bargain for the most part with any oddities and irregularities found in the administration and basic leadership of the association and the board.

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PERIOD UNDER REVIEW The execution appraisal will cover the period since foundation of the element from 2004 to date. The legal examination will cover the money related years 2005/2006, 2006/2007 and the current 2007/2008 to date.

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TIMEFRAMES The draft report is required to be submitted inside two months of engagement. A last report is to be submitted inside three months of engagement. Most extreme time of mediation is six months.

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Impendle Local Municipality

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REASONS Suspension of senior administration group for a broadened time of year and a half Failure to actualize arrangements of the MSA identifying with contracts for Section 57 workers Lack of advance on bolster programs because of an absence of responsibility Serious inadequacies in AG report for as long as three budgetary years Failure to affirm spending plan as far as MFMA and genuine deficiency on spending Failure by board to delegate senior administration including: MM CFO Technical Services Manager HR Manager

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MEC MANDATE Appointment of a multi-disciplinary undertaking group of pros with the fitting mastery and information in the pertinent fields to accept the accompanying commitments of the Impendle Municipality: to examine and address the disappointment of the region to give benefits in a feasible way to practice great human asset administration, to get products and enterprises as per a framework which is reasonable, fair, straightforward, aggressive and savvy; to research and address the disappointment of the region to give a monetary, responsible, viable and effective organization; to explore and address territories of weaknesses in the civil organization; to guarantee that the metropolitan administrator is appropriately designated; to guarantee that senior city directors are named inside the methods and necessities of the region; to address the weaknesses in the region\'s administration frameworks and money related frameworks and controls distinguished by the Auditor General; to recognize and address the issues of concern emerging from the 2007/2008 spending plan; to bolster the organization of the region; to help the region in filling key posts inside the methods and prerequisites of the district; to regularize the region\'s Human Resource and administration frameworks; and Task-Team so named to answer to the Executive Council on any move made as far as their order.

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PROGRESS A nitty gritty recuperation arrange has been drafted fusing: Organizational survey Recruitment of staff Operational frameworks, approaches and methodology Compliance MFMA & Financial Management Annual Report SDBIP SCM Internal Audit Budget Review Councilor Allowances MSA IDP Performance Management Employment Contracts An acting Municipal Manager has been conveyed to the region by the Provincial Department and has been selected in such limit by the civil gathering A budgetary administration master has been sourced from the DBSA and is giving the needed help Corporate administration and Human Resource ability has been gotten to f

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