EPHRAIM MOGALE LOCAL MUNICIPALITY DRAFT ANNUAL REPORT 201617

EPHRAIM MOGALE LOCAL MUNICIPALITY DRAFT ANNUAL REPORT 2016/17

INTRODUCTION To outline the Draft Annual Report for the period 01 July 2016 to 30 June 2017 which concludes Annual Financial Statements, the Auditor-General’s Report and the Annual Performance Report.

Municipal vision and Mission Viable and sustainable municipality that provides quality service and enhance economic growth Mission To involve all sector of the community in the economic and social development whilst improving service delivery thereby becoming a prominent agricultural, business and mega industrial growth point in the Sekhukhune District for the benefit of the residents and province.

LEGISLATIVE FRAMEWORK Section 127 (1) of the Local Government Municipal Finance Management Act, 2003 requires that the accounting officer of municipal entity compiles the annual report six months after the end of the financial year. Section 127 (2) requires that the mayor tables the annual report to the council seven months after the end of the financial year

LEGISLATIVE FRAMEWORK Section 127 (5) requires that the accounting officer of the municipality must make public the annual report as well as inviting members of the public to make inputs, comments and representation. The above section also requires that the annual report be submitted to the relevant provincial treasury, auditor general and department responsible for local government matters in the province

POPULATION TRENDS POPULATION 2015/2016 One hundred and twenty Three Thousand, Six Hundred and Forty Eight(123648) 2016/2017 One hundred and twenty Seven Thousand, One Hundred and sixty Eight (127168) NUMBER OF HOUSEHOLDS 2015/2016 Thirty Two Thousand Two Hundred and Eighty Four (32284) 2016/2017 Thirty Three Thousand Nine Hundred and Thirty Six (33936)

MUNICIPAL ASSETS Assets 2015/2016 R 1, 05 Million 2016/2017 R 1, 09 Million Property plant and equipment 2015/2016 R 812 Million 2016/2017 R 826 Million

MUNICIPAL LIABILITIES Liabilities 2015/2016 R 94, 7 Million 2016/2017 R 85, 6 Million Conditional grants (liabilities) 2015/2016 R 49, 8 Million 2016/2017 R 40, 6 Million The unspent grants in financial year 2016/2017 comprised the following EPWP=R 124 695 (One hundred and twenty Four Thousand, Six Hundred and Ninety Five).

NET ASSET POSITION Net assets 2015/2016/2017 R 960 Million R 1, 01 Million The net asset position has taken into account the sum of total assets minus liabilities for the period under review

MUNICIPAL REVENUE Total Revenue 2015/2016 R 260 Million 2016/2017 R 263 Million The main revenue streams 2016/2017 are as follows: • Government grants & subsidies • Property rates • Service charges

REVENUE SOURCES BY PERCENTAGE Revenue sources Grants and subsidies 98% Service charges Interest 101% 190% Other 47% TOTAL 98%

DETAILED REVENUE SOURCES Service Charges Licences & Permits Interest Received Property Rates Grants & Subsidies Fines Rentals

EXPENDITURE Line items Employee costs Amount Percentage R 70, 9 Million 97% Remuneration of councillors CAPEX Operational Costs R 11, 3 Million 97% R 53, 7 Million R 49, 2 Million 77% 63% Depreciation R 43, 2 Million 96%

EXPENDITURE CONT…. . Line item Repairs and maintenance Finance costs Bulk purchases Amount R 6, 8 Million Percentage 65% R 3, 4 Million R 29, 3 Million 878% 100% Grants and subsidies paid R 3, 2 Million 131%

EXPENDITURE CONT…. . GRANT TOTAL BUDGET EXPENDITURE MIG FMG EPWP R 29, 3 Million R 1, 8 Million R 1, 2 Million R 29, 3 Million R 1, 8 Million R 1, 1 Million % SPENT 100% 90% TOTAL R 34, 9 Million R 34, 8 Million 99. 6%

AUDITOR GENERAL OPINION Financial year 2014/2015/2016/2017 Auditor General Opinion Disclaimer Qualified

GOVERNANCE STRUCTURES Section 79 committees Executive Audit committee Committee Municipal Council Public Accounts Committee (highest decision making structure)

NUMBER OF COUNCILLORS Total number of councillors 32 Total number of Ward Councillors 16 Political party representatives ANC – 21 EFF - 07 DA - 02 INDEPENDENT - 01 FF – 01

ADMINISTRATIVE GOVERNANCE Municipal Chief Manager - Filled Financial Officer - Filled Director Infrastructure Services - Filled Director Community services – Filled Director Planning and Economic Development - Vacant Director Corporate Services – Vacant

MUNICIPAL EMPLOYEES Ephraim Mogale Local Municipality is having an organizational structure that was approved by Council during the adoption of the IDP and budget for 2016/2017 Financial year. The structure has approved 269 posts which 254 are filled and 15 Vacant.

SERVICE DELIVERY 2016/2017 The municipality successfully completed the following capital projects on Electricity: Project Name Budget Spent Ward Mast light connections R 45 Thousand 11, 13, 15 Densification EXT 1 & 3 R 962 Thousand 7 Upgrade EXT 2, Phase 2 R 1, 1 Million 7 Mast Repair/Retrofit, Energy Efficiency- Matala-a. Ramoshebo R 435 Thousand 5/6 Plotter A 1 R 40 Thousand All Generator for Offices – Finance Department 100 k. VA R 491 Thousand All Ring Main Unit Maintenance R 189 Thousand 7 Electrical material – Cultural Festival R 189 Thousand 6

CAPITAL ROADS AND STORM WATER The total length of the road network under ownership of Ephraim Mogale Local Municipality is 1162, 9 km, of which 1005. 9 km are gravel and 157. 0 km are surfaced. This excludes roads owned by SANRAL, Province, District Municipality, and Private Roads and this translates to only 12. 4% of the network being surfaced and the rest of network, i. e. 87. 6%, being gravel. ROADS PROJECTS NUMBER OF KILOMETRES IN ROADS TARRED LOCATION/VILLAGE PROJECT VALUE Elandskraal Internal Streets= 1. 4 km Elandskraal R 8, 1 Million Phetwane Internal Road=1 km Phetwane R 6, 2 Million Rathoke Internal Streets= 1 km Rathoke R 6, 09 Million Ngwalemong Internal Streets=3. 2 km(multi-year) Ngwalemong R 19, 1 Million Marble Hall Industria Road= 0. 25 km Marble Hall R 1, 7 Million Rehabilitation of Leeuwfontein Internal Streets= 0. 6 km Leeuwfontein R 1, 9 Million Rehabilitation of streets in Marble Hall R 3, 09 Million

SERVICE DELIVERY CONTINUED All villages have been connected to the ESKOM grid. The allocation for the year was for ESKOM to complete 400 connections divided into 11 villages(Manthole, Uitvlught, Tsimanyane south (Mooihoek), Disanyane, Moomane, Tshikanosi, Manapyane Ext, Moganyaka Area, Moeding and Mohlotsi). ESKOM deferred 5 projects and only completed 81 connections by year end. A final total of 154 was completed eventually. ESKOM also completed 102 infill’s but was not willing to provide the information according to the villages. The backlog was 909 (2. 68%) in 2015/2016 and at the end of 2016/2017 it was 1071(3. 13%) of an estimated ± 34 255 HH (Energised 2016 + new connections 2017 + backlog)

SERVICE DELIVERY CONTINUED 17 residential areas had been provided with some public lighting and the Municipality expanded this network to five more areas with the connection of 25 m scissor masts at Morarela, Mbuzini, Mohlotsi, Matseding and Mohlalaotwane. The municipality has set a target of 2000 beneficiaries to receive Free Basic Electricity in the 2016/17 financial year and manage to provide for 1900 beneficiaries who are on the indigent register.

SERVICE DELIVERY CONTINUED In the electrical distribution license area of the Municipality: Re-connect 1. 5 MVA industrial bulk connection after 10 year of inactivity. Replaced 500 meter medium voltage cable in Extension 2 as well as low voltage cables. Upgraded one minisubstation from 300 k. VA to 630 k. VA with additional low voltage cables for increased load in Extension 1 Households on prepaid increased from 45% to 50%. Network losses was below 6% Interruptions was within NERSA requirements The supply from ESKOM to the town was still adequate. Highest maximum demand reached during the year was 6. 4 MVA of the available 7. 5 MVA (85%). Electrical Master Plan was developed. A stand-by generator was installed for the Finance Department to ensure continues of transactions.

SERVICE DELIVERY CONTINUED The Landfill site in Marble Hall were rehabilitated and maintained in line with the operational permit. • An External Landfill compliance audit was done by an External Company which submitted a audit report and we have compliance register • Refuse removal services were provided to Marble Hall, Leeuwfontein RDP, Elandskraal and Schoeman Farms and a few skip containers , 5619 household once week were serviced • New equipment were bought to deal with the replacement of old equipment. The equipment which was bought were; 15 bush cutters and Tractor •

SERVICE DELIVERY CONTINUED • • • The Annual Arrive alive campaigns were successfully held in December 2017, January 2017 and Easter weekend 2017 were road users were made aware of the road traffic act conditions and Vehicle license and driver licenses were inspected. The greening of the municipality was done by the planting of trees in Marble Hall Town and a Landscaping master plan for the Marble Hall town were completed. The Annual Mayor’s cup event was held on 25 June 2017 at Elands kraal Stadium Three Local Aids Council forum meetings were held. The election of Council during august 2016 delayed the 1 st Quarter Meeting Three HIV /Aids awareness campaigns were held in Rakgwadi ( 22 June 2017) , Mamphogo ( 25 February 2017) and Morarela ( 3 April 2017)

LOCAL ECONOMIC DEVELOPMENT The municipality was able to create 43 job opportunities through MIG capital projects, 183 on EPWP and 1525 CWP. 04 SMME's and Cooperatives capacity building skill workshops held 16 cooperatives were supported with access to funding and training. 04 LED Forums ware conducted successfully. LED Summit was conducted successfully.

ORGANISATIONAL PERFORMANCE 2016/2017 SERVICE DELIVERY AND BUDGET IMPLEMENTATION PLAN Total Number of targets set 148 Number of targets achieved 104 Number of targets not achieved 44 Percentage overall achievement 70. 27% Percentage not achieved 29. 73%

MAYORAL/SPEAKER OUTREACHES FOR 2016/2017 NUMBER OF OUTREACHES LOCATION/VILLAGES Annual Report 2015/16 Public Participation Mokgwaneng Community Hall, Manapjane Sports Ground next to Montsosaboshego Primary School, Vaalbank SASSA Pay Point, Mbuzeni Agricultural Office & Marble Hall Town Hall Back to School Opening Campaign Moutse west circuit offices, Rakgwadi circuit Mokone A Mabula senior secondary school, Tsimanyane circuit office, Lepelle circuit Ngala H School & Marble Hall Town Hall MPAC Annual Report 2015/16 Public Hearing Municipal Chamber SOMA Dichoeung Community Hall Annual Ward Committee Conference 2016/17 Tiveka Lodge IDP Review Public Participation 2017/18 Phetwane Sports Ground , Moomane Community Hall, Leeuwfontein Community Hall & Klopper Community Hall Ward Committee Induction Schuinsdraai (Tambotie Lodge)

BURSARIES 16 beneficiaries were accommodated during 2016/17 calendar year. The municipality have spent in total R 957 305. 71 on external bursaries during 2016/2017 financial year. During the period of 2016/2017, The Mayor’s Office awarded top learner a special bursary and Econ Oil & Energy also allocated 10 laptops for achieving top learners.

LOCAL LABOUR FORUMS As part of ensuring labour peace within the workplace, the municipality intended to hold at least 1 local labour forum per month. We have managed to hold 8 local labour forum meetings during 2016/2017 financial year.

CONCLUSIONS The Draft Annual Report for 2016/2017 financial year is hereby presented in terms of Section 127 of the MFMA Act, 2003 for all stakeholders to make inputs and comments. The closing date for comments is 04 March 2018

CONCLUSIONS • Comments can be forwarded to: Manager IDP: (073) 1994 570/ (013) 261 8456 : dmokoka@emogalelm. gov. za Institutional PMS Officer : (064) 6144 630/ (013) 261 8517 : rmaepa@emogalelm. gov. za

CONCLUSIONS The municipality have obtained a qualified audit opinion during the 2016/2017 financial year and again The Chartered Institute of Government Finance, Audit & Risk Officers (CIGFARO) also awarded the municipality with 02 awards which ware CIGFARO Clean Administration Award and CIGFARO Best Improved Municipality. All gratitude goes to the team (Executive Committee, Speaker, Chief Whip, and all Councillors), the Municipal Manager and Senior Managers, as well as the rest of the staff and the community. Without the determination and commitment shown, EPMLM’s vision would have never been realized. THANK YOU