AMAJUBADISTRICT MUNICIPALITY

PROFILE

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TABLE OF CONTENTS

EXECUTIVE SUMMARY 31. INTRODUCTION 41.1 Overview 41.2 Municipalities within the District 61.3 Political and Administrative Leadership and Seat of District 61.4 Political Representation 62. SERVICE DELIVERY 82.1 Household Infrastructure 82.2 Sanitation 82.3 Water 82.4 Electricity 92.5 Refuse Removal 92.6 Service Provider 93. AUDIT OPINIONS 94. STATE OF LOCAL GOVERNMENT ASSESSMENT 104.1 Overview of findings on assessment in the Municipality 104.1.1 Governance 104.1.2 Financial Management and Viability 114.1.3 Service Delivery 115. INFRASTRUCTURE PRIORITIES IN TERMS OF THE MUNICIPAL

TURN-AROUND STRATEGY11

6. MIG PROJECTS 137. VULNERABILITY CLASSIFICATION 15

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EXECUTIVE SUMMARY

The Amajuba District Municipality is predominantly urban with almost 60% of households located in urban areas. The largest concentration of people occurs in the Newcastle-Madadeni-Osizweni area. Income levels in the district are generally low. Unemployment has increased substantially to about 26.46%

The economy was historically focused on coal mining but many collieries have closed. Due to the decline in mining, local economic development has been forced to refocus. The manufacturing sector is the main employer but is concentrated in Newcastle Municipality.

About 64% of households in the district have piped water either inside the home or inside the yard. About 49.6% of households have flush toilets that are connected to a sewerage system of some type. Amajuba district has the second highest access to infrastructure amongst the districts in the province. However, an overview of household access to infrastructure in the district shows a slight improvement from 66% in 1996 to 67% in 2009. A downward trend can be observed in access to electricity in the district. In 1996, household access to electricity connections was at a high level of 72%. Access has, however, decreased over the years and by 2009, it was at 61%.

Amajuba District municipality and two of the local municipalities have improved their audit outcomes over time to a financially unqualified with other matters opinion. Newcastle municipality was the only municipality to still receive a qualified opinion in 2009/10.

Amajuba District Municipality has been identified in the KwaZulu-Natal State of Local Government Assessment as one of the councils that did not seem to perform any oversight function and were also experiencing serious service delivery challenges.

In terms of its Municipal Turn-Around Strategy the Amajuba District Municipality identified the limited access to funding for infrastructure development, as well as inadequate policies and bylaws, poor reporting and poor implementation of agreements. As the municipality is not providing electricity, engagement is required with Eskom to address energy challenges.

None of the local municipalities in the Amajuba District have been classified as in the category of most vulnerable by DCoG in terms of functionality, socio-economic profile and backlog status, but two of the three local municipalities are classified in the second most vulnerable grouping.

This profile confirms that infrastructure prioritisation in the Amajuba District should focus on sanitation, especially the funding to eradicate the backlog.

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1. INTRODUCTION

1.1 Overview1

Amajuba District Municipality, located in the northwestern corner of KwaZulu-Natal, comprises three local municipalities: Newcastle, Dannhauser and Utrecht. The population of Amajuba District Municipality is 447 768. Over seventy percent of the population are below the age of 34. The municipality is predominantly urban with almost 60% of households located in urban areas. The largest concentration of people occurs in the Newcastle-Madadeni-Osizweni area.

Income levels in the district are generally low. Unemployment has increased substantially to about 26.46%. Factors that may have contributed to this include the following:

• Workers retrenched in big cities would have returned home to Amajuba;• Many mines in the area have been closed;• The labour force has grown as many young people completed their education;• Mechanisation and growth in the services sector have occurred; • Some people living with HIV/AIDS have become incapacitated and are unable to

continue with their jobs.

The economy was historically focused on coal mining but many collieries have closed. The manufacturing sector is the main employer but is concentrated in Newcastle Municipality (90% of manufacturing employment is found there). The social services sector is the second most important employer, providing about 22% of employment opportunities. Farming predominates in Dannhauser Municipality with activities such as cattle farming, dairy farming and maize growing being prominent. Coal mining remains the main economic activity in Utrecht Municipality, which provides 68% of mining employment opportunities in the district. Due to the decline in mining, local economic development has been forced to refocus. The municipality has embarked on an ambitious initiative whereby Utrecht is being marketed as ‘a town within a game park’.

About 64% of households in the district have piped water either inside the home or inside the yard. About 49.6% of households have flush toilets that are connected to a sewerage system of some type. Only 20% of households have no access to electricity. Fifty-nine percent of households receive a weekly (or other) refuse removal service from the municipality.

The following areas of growth potential have been identified:

• Battlefield development and Amajuba Tourism Route; • Creation of the Midway Meander;

1 Source: Gaffney’s, November 2009: Local Government in South Africa 2009 – 2001, Official Yearbook: p 741 - 742

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• Development of tourism opportunities around the proposed Ncandu River Dam; • Development of dams along the Buffalo River catchment, which will open up large

portions of the tribal areas for irrigation; • Development of the old casino complex into a 2010 base camp; • Further development of the Balele Nature Reserve at Utrecht; • Development of the eMadlangeni Fly-fishing Meander; • Development of the proposed Dunblaine Golf Estate; • Development of a proposed residential estate at the Newcastle Golf Course; • Development of an agricultural hub that will be linked to the Dube Trade Port; • Development of opportunities along the MR483 Corridor linking the CBD to

Madadeni and Osizweni; • Implementation of the Urban Renewal Programme in the Newcastle CBD; • Development of a new mall adjacent to the new casino; • Development of housing projects as part of the implementation of the housing

plans for the three local municipalities; • Establishment of SEDA Amajuba; • Development of the Amajuba Hydroponic Techno Park; • Identification of Newcastle as an industrial development zone; • Development of the following areas of agricultural potential:

- Dairy: Further development of the diary industry to focus on the export of milk, cheese, powdered milk, yogurt and fruit juices;

- Soya: Processing of soya to create bio-diesel and soya meal; - Vegetables: Specialised production of vegetables through the use of tunnels; - Beef: Feedlot development; - Dams: Identification of sites for storage to increase irrigable land and further

develop the above.

Tourism has the potential to play an important role in the economy. Gauteng Province and Durban are the major domestic tourism markets for the district, with overnight stays popular with travellers from these areas. Tourist attractions include historic buildings, factory tours, flyfishing, hunting, art routes, abseiling, hiking, adventure camps, battlefields, organised bird-shooting, museums, 4 x 4 trails, nature reserves, craft shops, bird-watching, gaming, horseback adventures, golf courses, legal street races and festivals such as the Amajuba Winter Festival.

Amajuba District Municipality contains battlefields from a variety of conflicts, including the Anglo-Zulu War, the South African War and the First War of Independence (1880–81).

A number of hiking trails have also been developed in the district such as the Bushmankrans, Eikenhof, Fort Mistake, Holkrans, Hunter’s Valley Game Ranch, Majuba Mountain Resort and Ncandu trails. The Amajuba Birding Meander is also a very popular tourist attraction. It gives bird-watchers easy access to most of the wonderful birds found in the region. These include ground woodpeckers, cranes, harriers and

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kestrels. The creation of the Midway Meander has been proposed. This will build on the existing Amajuba Birding Meander and the battlefields routes.

1.2 Municipalities within the Amajuba District

The details of the three local municipalities within the District are tabled below:

Table 1: Statistics of the Amajuba District and Local Municipalities

Municipalities within the District Area (km²)

in 2009

Area (km2) after 2011Local Govt Elections

& % changePopulation No. of

HouseholdsPoverty

Rate

Amajuba District Municipality 6,910.52 6,910.52 - 447,768 102,309 19.09%

Dannhauser Local Municipality 1,515.91 1,515.91 - 92,500 18,283 72.01%

Emadlangeni Local Municipality 3,539.32 3,539.32 - 23,548 5,274 56.80%Newcastle Local Municipality 1,855.29 1,855.29 - 331,719 78,752 56.36%

1.3 Political and Administrative Leadership and Seat of the District2

Political Leadership: Executive Mayor: Ms J KhumaloAdministrative Leadership: Acting Municipal Manager: Ms Z Ndlovu

The head office of the District is located in Newcastle.

1.4 Political representation3

Table 2: Local Government Election 2006 / Provincial and National Elections 2009 comparison:

Leading Parties in the Elections

Local Government Elections 2006 Provincial Elections 2009 National Elections 2009Party Party Votes

and %Ward Votes and %

Councillor Seats Party Votes and % Party Votes and %Party Seats %

1st ANC 33,478 42.5% 32,720 41.6% ANC 10 40.0% ANC 93,420 66.0% ANC 99,173 68.7%2nd IFP 28,773 36.6% 28,606 36.4% IFP 9 36.0% IFP 33,940 24.0% IFP 29,323 20.3%3rd DA 6,765 8.6% 6,496 8.3% DA 3 12.0% DA 8,004 5.7% DA 8,940 6.2%4th ACDP 1,256 1.6% 1,035 1.3% FEDCON 2 8.0% FF/VF 1,272 0.9% COPE 1,300 0.9%

Other 8,418 10.7% 9,807 12.5% Other 1 4.0% Other 5,014 3.5% Other 5,525 3.8%Totals 78,690 100% 78,664 100% Totals 25 100% 141,650 100% 144,26

1100%

2 Source: Amajuba DM; August 20113 UPDATE Aug'09: DC40 seats – ANC (40%) 4 seats, IFP (40%) 4 seats, DA (10%) 1 seat, FC (10%) 1 seat, Total 10 DC40 seats

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Figure 1: 2011 Local Government Election results and seat allocations:

The ANC is the leading party in terms of proportional DC40 Seats in Amajuba, with 5 seats of 10 seats. The ANC and the NFP forms a coalition government in the District.

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2. SERVICE DELIVERY4

2.1 Amajuba District Municipality Household Infrastructure

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 20090.56

0.58

0.60

0.62

0.64

0.66

0.68

0.70

Household Infrastructure OverviewKZN - DC25 Amajuba District Municipality

KZN - DC25 Amajuba...

Inde

x

Source: IHS Global Insight Regional eXplorer version 574

Amajuba district has the second highest access to infrastructure amongst the districts in the province. However, an overview of household access to infrastructure in the district shows a slight improvement from 66% in 1996 to 67% in 2009. A downward trend in access from 2007 can be seen on the graph above.

2.2 Sanitation

With regard to access to sanitation, the district municipality’s household access to hygienic toilets has gone up slightly from a higher level of 61% in 1996 to 64% in 2009. The slight improvement in access to sanitation in general in the Municipality is mainly due to the increase in the use of pit latrines with ventilation.

2.3 Water

There are higher levels of access to piped water in the district. Access to piped water above RDP level increased from 68% to 74% from 1996 to 2009. Similarly, there has

4 Sources: IHS Global Insight Regional eXplorer version 574 and Municipal Demarcation Board, 2008: National Report on Local Government Capacity, District and Local Municipalities, MDB Capacity Assessment, 2007/2008.

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been a slight increase as well in access to piped water below RDP level. Only 10% of the households do not have access to this service.

2.4 Electricity

A downward trend can be observed in access to electricity in the district. In 1996, household access to electricity connections was at a high level of 72%. Access has, however, decreased over the years and by 2009, it was at 61%.

2.5 Refuse removal

Access to formal refuse removal service in the district has been higher (almost 60%) since 1996. By 2009, some of the formal refuse removal services in the district were, however, removed by the community. While this is the case, personal refuse removal stayed the same over the years.

2.6 Service provider

Amajuba district does not have authority and does not perform the electricity reticulation function. The district, however, has authority and performs potable water and sanitation functions. The district has no authority and is not performing the refuse removal, refuse dumps and solid waste disposal function.

3. AUDIT OPINIONS

Table 3: Audit Opinions of the District and Local Municipalities

Municipality Audit Opinion 2005/6

Audit Opinion 2006/7

Audit Opinion 2007/8

Audit Opinion 2008/9

Audit Opinion 2009/10

Amajuba DM Qualified Qualified Qualified Qualified Financially unqualified with findings

Dannhauser LM

Disclaimer Disclaimer Disclaimer Qualified Financially unqualified with findings

Newcastle LM

Qualified Qualified Financially unqualified with other matters

Qualified Qualified

Emadlangeni LM

Qualified Disclaimer Disclaimer Qualified Financially unqualified with findings

Source: Auditor-General 2009 and 2011, see. www.agsa.co.za

In 2005/6 and 2006/7 Amajuba district and its four locals failed to secure clean audit results. In 2007/8 Newcastle was the only municipality to receive a financially

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unqualified audit outcome. Amajuba district, Dannhauser and Emandlangeni all obtained financially unqualified audit results following qualified audit opinions in 2008/9.

4. STATE OF LOCAL GOVERNMENT ASSESSMENT

4.1 Overview of findings on assessment in the municipality

Amajuba District Municipality was one of 24 councils that did not seem to perform any oversight function and should be supported to implement the oversight role. The Provincial Report states that the lack of Councillor Oversight has emerged as the single most contributing factor to poor governance and service delivery. A large number of Councillors appear not to appreciate the nature and importance of their oversight role and the administration seem to ignore the need for oversight due to the administrative and accountability implications it will have for them.

Twenty municipalities in KwaZulu-Natal, including Amajuba District Municipality, were experiencing serious service delivery challenges. The Provincial Report was of the view that the allocation of powers and functions between the different categories of municipalities is impeding service delivery. This factor, coupled with the lack of adequate funding and objective prioritisation of needs, appear to be the major factors giving rise to service delivery challenges.

Emadlangeni Local Municipality and Newcastle Local Municipality were identified in the KwaZulu-Natal State of Local Government Assessment as two of 19 municipalities that recorded serious challenges in most of the focus areas and should therefore be prioritised for immediate intervention.

4.1.1 Governance

Emadlangeni Local Municipality and Newcastle Local Municipality were two of 17 municipalities in KwaZulu-Natal affected by political instability. The Provincial Report lists a number of causes of political instability including: the lack of understanding and adherence to the roles and responsibilities of political office bearers, interference in council matters from the regional and provincial political structures, a lack of deliberations on matters in council, domination of some councils by politically powerful administrations, power struggles between political office bearers from same party and a lack of communication and public participation frameworks creates environment for uncoordinated interaction with community.

Emadlangeni Local Municipality is among the nine municipalities in KZN that require immediate support to improve their public participation processes. Some of the challenges that the identified municipalities are facing include: lack of stakeholder consultation; no structured public participation framework; lack of delivery of services; Ward Committees being political rather than service delivery oriented; and there is a need to clarify roles and functions of CDWs.

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All three local municipalities (Emadlangeni, Dannhauser and Newcastle) are part of 24 councils that do not seem to perform any oversight function and should be supported to implement the oversight role. The Provincial Report states that the lack of Councillor Oversight has emerged as the single most contributing factor to poor governance and service delivery. A large number of Councillors appear not to appreciate the nature and importance of their oversight role and the administration seem to ignore the need for oversight due to the administrative and accountability implications it will have for them.

Newcastle Local Municipality was identified as one of 5 municipalities that have serious challenges in cooperative governance, including poor working relations with the district municipality.

4.1.2 Financial Management and Viability

Emadlangeni is also one of 30 municipalities in KwaZulu-Natal that are facing serious financial management challenges. The Provincial Report lists some of these concerns, including: poor financial planning, inadequately skilled staff appointed, lack of proper financial controls, poor financial competencies of elected representatives, and unemployment and poverty had a negative effect on credit control and income. There is also a general perception that councils are not transparent when it comes to financial policies and activities and that the reason for this is to hide their corrupt practices from the public.

4.1.3 Service Delivery

Twenty municipalities in KwaZulu-Natal, including, Newcastle and Emadlangeni are experiencing serious service delivery challenges. The Provincial Report is of the view that the allocation of powers and functions between the different categories of municipalities is impeding service delivery. This factor, coupled with the lack of adequate funding and objective prioritisation of needs, appear to be the major factors giving rise to service delivery challenges.

5. INFRASTRUCTURE PRIORITIES OF THE MUNICIPAL TURN-AROUND STRATEGY

The Amajuba District Municipality identified a number of priorities on basic service delivery in the Amajuba Municipal Turn-Around Strategy.

Table 4: Infrastructure delivery in terms of the MTAS

Water Sanitation Electricity Refuse removal and solid waste disposal

Challenges Limited access Unforthcoming No visible role Inadequate

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to funding for infrastructure development

Inadequate and/or lack of water services' policies and bylaws

Non-implementation of WSA/WSP Agreement regarding the securing of funds

Non reporting on current implemented capital projects by uThukela Water leading to difficulties in decision making

outcome of MEC's investigation relating to Danhauser sanitation projects

Lack of funds to finance planned eMadlangeni sanitation projects

Limited funds to eradicate sanitation backlog

played by the ADM in electricity supply within its jurisdiction

and/or lack of bylaws as well as engagement with LMs

Raising of funds to conduct studies

Municipal Actions

Engineering department to engage DBSA and other relevant sector departments regarding attraction of additional funding.

Arrangement for the development and urgent review of water policies and by-laws be also attended as a matter of urgency

It was agreed that uThukela water as an

Business plan for the eradication of sanitation backlog was approved for Danhauser area, but implementation was suspended due to an investigation by MEC, engineering deptment to fast-track investigation findings.

Engineering department is currently finalising business plan for eMadlangeni

ADM to develop strategies and plans that will look at alternative sources of energy e.g. solar panels

ADM to engage ESKOM and DME regarding the provision of electricity within ADM area of jurisdiction

Relevant forum to deal with electrification to be established at a district level

ADM must urgently engage Newcastle Municipality on waste management issues as this is a shared service between these Municipalities

ADM to assist all Local Municipalities in identifying and fast tracking the review and preparation of by-laws

ADM to take the lead in establishing the regional waste

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entity have a responsibility to seek/explore and secure funding for the implementation of water capital projects as per WSA/WSP agreement.

A detail report to council regarding ADM capital projects currently being implemented by uThukela water, in order to assess whether ADM should take over the implementation thereof

It is recommended that other sources of funding be identified as a matter of urgency eg DBSA and other related sector departments

facilities

Others ESKOM to provide planning information.

6. MIG PROJECTS5

Table 5: MIG projects

Municipality Project name MIG funds Actual expenditure in the 2010/11 financial year

Project status (Registered/design/tender/construction)

Project category (e.g. water, sanitation, PMU)

Newcastle LM

Asiphephe/MAD4 Link Road and Bridge (AFA) MIS 190352 R 20,554,405.54 R 7,226,848.08 Construction Road & StormwaterJR 1 Roads and Stormwater (AFA) MIS 191396 R 9,686,449.21 R 6,607,503.76 Construction Road & StormwaterJR 4 Road and R 3,536,502.36 R 1,663,864.37 Construction Road & Stormwater

5 According to the June 2011 monthly non-financial report on Municipal Infrastructure Grant, KwaZulu-Natal has not adopted the new format of reporting on MIG projects. As a result, it becomes a challenge to track the implementation of MIG projects in that province.

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Stormwater (AFA) MIS 173582Osizweni Urban Access Road Phase 1 (AFA) MIS 190613 R 36,975,201.22 R 10,750,862.89 Construction Road & StormwaterOsizweni Urban Access Road Phase 2 R 14,250,000.00 R 2,652,344.51 Registered Road & StormwaterViljoenpark Bulk Services R 81,340,000.00 R 13,440,497.92 Construction WaterDickshalt Township Roads R 20,318,058.92 R 1,340,458.32 Construction Road & StormwaterMadadeni Urban Access Roads Phase 1 (AFA) MIS 191302 R 43,379,479.45 R 10,805,201.86 Construction Road & StormwaterStaffordhill Waterborne Sewage Phase 3 R 18,032,230.00 R 1,076,538.31 Construction SanitationMndozo Urban Roads and Stormwater R 57,868,065.00 R 3,430,165.11 Construction Road & StormwaterMadadeni-Johnstown Link Road R 6,075,000.00 R 3,611,279.91 Design & Tender Road & StormwaterPMU R 1,009,077.22   Other

Dannhauser LM

Rural Roads Phase 2 R 11,400,000.00 R 1,029,797.49 Construction Road & StormwaterVerdriet Community Hall R 2,954,940.52 R 1,893,905.57 Construction

Multi purpose community halls

Rural Roads Phase 3 R 25,000,000.00 R 8,725,564.12 Construction Road & StormwaterDannhauser Bus Ranking System R 2,360,291.72 R 830,041.76 Construction Bus SheltersWard 9 Community Hall R 3,300,000.00 R 272,276.55 Design & Tender

Multi purpose community halls

Buffalo Flats Water Supply Scheme Phase 2 R 34,800,553.00 R 5,110,626.34 Construction WaterBuffalo Flats Water Supply Scheme Phase 3 R 83,517,981.00 R 30,521,436.89 Construction Water

Emandlangeni LM

Rehabilitation of Emadlangeni Rural Roads R 9,292,500.00 R 247,535.84 Completed Road & StormwaterEmxhakeni Creche Ward 3 R 725,000.00 R 696,135.05 Completed Child care facBensdorp Agri Village Creche Ward 2 R 725,000.00 R 699,949.03 Completed Child care facKhayaletshu / North Hill Gravel Road -

R 6,225,000.00 R 88,404.53 Registered Road & Stormwater

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RehabilitationFencing Utrecht (Emadlangeni) Municipal Services R 4,421,250.00 R 848,224.93 Construction FencingKwalembe Kempslust Access Road Rehabilitation Ward 1 R 2,250,000.00 R 1,668,700.88 Completed Road & StormwaterEmxhakeni - Gravel Access Road Rehabilitation R 1,576,934.10 R 78,058.08 Design & Tender Road & StormwaterHoogenoeg Gravel Road (Ward 3)- Rehabilitation R 4,026,000.00 R 53,027.76 Registered Road & StormwaterAmawela Gravel Road (Ward 1)- Rehabilitation R 3,214,860.00 R 62,687.27 Design & Tender Road & StormwaterEzihlabathini (Kwa-Nzima) Gravel Road - Rehabilitation (Ward 1) R 3,336,997.50 R 375,822.64 Construction Road & StormwaterEnchuba - Pedestrian Bridge Ward 2 (Bloem / Klopper) R 1,065,672.00 R 22,443.75 Design & Tender Road & StormwaterPMU   R 301,786.33   Other

Source: All MIG projects, June 2011

Newcastle local municipality has more projects about roads and stormwater and most are at a construction phase. Like in Newcastle, Emandlangeni has a large number of roads and stormwater projects of which some have been completed. The June 2011 non-financial report on MIG states that Amajuba and its locals did not submit their June MIG reports.

7. VULNERABILITY CLASSIFICATION

The DCoG Municipal Spatial Classification System was designed to develop municipal profiles according to spatial location, based upon results from indicator sets on functionality, socio-economic profile and backlog status. Its purpose is to inform a differentiated approach to municipalities.

The four municipal classifications developed by DCoG are:Class 1: Most vulnerable (57 local municipalities)Class 2: Second most vulnerable (58 local municipalities)Class 3: Second highest performing (58 local municipalities)Class 4: Highest performing (58 local municipalities)

The three local municipalities in the Amajuba District can be classified as follow:

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Table 6: Vulnerability Classification

Local Municipality ClassificationDannhauser Second most

vulnerable Emadlangeni Second most

vulnerableNewcastle Second highest

performing

From this table it is evident that none of the local municipalities in the Amajuba District fall into the most vulnerable category, but that two of the three local municipalities are classified in the second most vulnerable grouping.

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