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MUNICIPAL CAPACITY ASSESSMENT

2018

Musina

LIM341

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NOTE:

In this report, data from a wide variety of sources were used.

Municipalities were requested to provide information on broad aspects of

governance, capacity and the performance of functions. Stats SA data

from the population census and municipal censuses (Non-Financial and

Financial) were used to determine population size, number of

households and service backlogs. Other data were sourced from

National Treasury, LGSETA, SARS, CoGTA, SAPS, MDB, etc. for this

assessment of capacity. However, given that many municipalities did not

provide all the information requested of them, these additional data

sources were combined with their own data. All municipalities were also

provided with the information contained herein and requested to verify all

information in these capacity assessments, and to provide additional

information where necessary. Therefore, the MDB takes no

responsibility for any inaccurate information and the interpretation

thereof.

Contents

1. Introduction..........................................................................................................1

1.1 Methodology..................................................................................................3

1.2 Additional data sources..................................................................................4

1.3 Comparative analysis.....................................................................................4

1.4 The municipal report......................................................................................5

1.5 Overview of municipality................................................................................5

2. Environmental situation........................................................................................8

2.1 Demographics..............................................................................................11

2.1.1 Population.............................................................................................11

2.1.2 Age structure.........................................................................................12

2.1.3 Households and density........................................................................13

2.1.4 Income, tax and employment................................................................15

2.2 Land and Human Settlements......................................................................19

2.2.1 Land claims...........................................................................................19

2.2.2 Traditional communities.........................................................................20

2.2.3 Access to housing.................................................................................21

2.2.4 Types of housing...................................................................................22

2.2.5 Land use................................................................................................23

2.3 Infrastructure and Service Provision............................................................24

2.3.1 Movement and Transport services........................................................27

2.3.2 Education services................................................................................27

2.3.3 Health services......................................................................................30

2.3.4 Safety and security................................................................................31

2.4 Economic development................................................................................32

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2.4.1 Mining....................................................................................................32

2.4.2 Tourism.................................................................................................32

2.4.3 Telecommunication infrastructure.........................................................33

2.5 Other government services infrastructure....................................................34

2.6 Environment, Natural Features and Endowments.......................................35

3. Governance assessment...................................................................................37

3.1 Financial overview.......................................................................................37

3.2 Voter turnout................................................................................................40

3.3 Municipal staffing.........................................................................................41

4. Municipal Overview of Capacity.........................................................................42

4.1 Staffing information......................................................................................42

4.2 Management overview.................................................................................45

4.3 Financial information....................................................................................46

4.4 Governance.................................................................................................50

4.5 Departmental assessment...........................................................................52

5. Assessment of capacity to perform functions.....................................................54

5.1 Development and town planning services....................................................55

5.2 Technical services.......................................................................................65

5.3 Community services.....................................................................................71

6. Conclusion and recommendations.....................................................................80

6.1.1 Updating of information on Powers and Functions................................80

6.1.2 Identification of capacity requirements to exercise particular powers and

functions.............................................................................................................80

6.1.3 MECs could identify areas in which they need to rationalise the division

of powers and functions.....................................................................................81

Appendix 1: Definitions............................................................................................82

Appendix 2: Amalgamation Process........................................................................98

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Provincial context..................................................................................................98

Municipal Context................................................................................................100

Municipality Settlement Reality............................................................................102

New Governance Arrangements.........................................................................103

Changed Economic Bases..................................................................................105

Personal Income Tax Bases................................................................................107

Merging Infrastructure Realities...........................................................................108

Merging Municipal Financial Realities.................................................................109

Mergers and Audits.............................................................................................111

Changing Senior Management Capacities..........................................................113

The Disestablishment Of Mutale And The Reconfiguration Of The Remaining

Municipalities In Vhembe: Makhado, Musina And Thulamela And The

Establishment Of A New Municipality Collins Chabane.......................................115

Summary Issues..................................................................................................117

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List of figures

Figure 1: Municipal context........................................................................................6

Figure 2: Demographic overview..............................................................................12

Figure 3: Racial breakdown.....................................................................................12

Figure 4: Age breakdown..........................................................................................13

Figure 5: Number of households and municipal area................................................13

Figure 6: Household size.........................................................................................14

Figure 7: Percentage population by density.............................................................15

Figure 8: Percentage municipal area by density......................................................15

Figure 9: Household income....................................................................................16

Figure 10: Tax base.................................................................................................17

Figure 11: Employment............................................................................................18

Figure 12: Percentage total employment by sector..................................................18

Figure 13: Dependency and inequality.....................................................................19

Figure 14: Land area containing traditional authorities and which were part of

homelands.................................................................................................................20

Figure 15: Percentage of population living in informal settlements..........................21

Figure 16: Density of formal and informal areas......................................................21

Figure 17: Percentage of households by tenure......................................................22

Figure 18: Dwelling type...........................................................................................23

Figure 19: Land cover..............................................................................................24

Figure 20: Access to services..................................................................................26

Figure 21: Number of consumers billed...................................................................26

Figure 22: Road length by road type and surface....................................................27

Figure 23: Educational infrastructure per 10 000 population....................................28

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Figure 24: Matric pass rate and percentage of youth in school................................28

Figure 25: Percentage population by level of education..........................................29

Figure 26: Crime levels............................................................................................31

Figure 27: Active mines and mining licences...........................................................32

Figure 28: % of land with natural heritage assets....................................................33

Figure 29: Access to telecommunications................................................................33

Figure 30: General infrastructure.............................................................................34

Figure 31: Audit outcomes.......................................................................................38

Figure 32: Financial indicators.................................................................................40

Figure 33: Further measures of financial performance............................................40

Figure 34: Voter turnout and registered voters.........................................................40

Figure 35: Municipal councillors and employees......................................................41

Figure 36: Limpopo changes in municipal boundaries.............................................99

List of tables

Table 1: Land claims................................................................................................20

Table 2: Schools and learners.................................................................................29

Table 3: Key health statistics...................................................................................30

Table 4: Potential impacts of climate change...........................................................35

Table 5: Staffing levels.............................................................................................42

Table 6: General qualifications.................................................................................42

Table 7: MFMA competency....................................................................................43

Table 8: Total days worked......................................................................................45

Table 9: Staff turnover..............................................................................................45viii

Table 10: Senior management.................................................................................45

Table 11: Qualifications of professionals..................................................................46

Table 12: Expenditure..............................................................................................47

Table 13: Income.....................................................................................................47

Table 14: Creditors...................................................................................................48

Table 15: Analysis of rates collected........................................................................49

Table 16: Free basic services..................................................................................50

Table 17: Meetings held...........................................................................................51

Table 18: Protests and petitions...............................................................................52

Table 19: Departments.............................................................................................53

Table 20: Grouping of functions...............................................................................54

Table 21: Performance of functions (Development and town planning services).....55

Table 22: Financial overview (Development and town planning services)...............58

Table 23: Staffing overview (Development and town planning services).................60

Table 24: Backlog and service delivery (Development and town planning services)

..................................................................................................................................62

Table 25: Performance of function (Technical services)..........................................65

Table 26: Financial overview (Technical services)...................................................67

Table 27: Staffing overview (Technical services).....................................................68

Table 28: Backlog and service delivery (Technical services)...................................70

Table 29: Performance of function (Community services).......................................71

Table 30: Financial overview (Community services)...............................................73

Table 31: Staffing overview (Community services).................................................75

Table 32: Backlog and service delivery (Community services)...............................77

Table 33: Changes to Category B Municipalities.....................................................99

Table 34: Summary of merger and incorporation...................................................101

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Table 35: Population density..................................................................................103

Table 36: Voters and councillors............................................................................104

Table 37: Employment and economic growth........................................................107

Table 38: Rates and staffing..................................................................................108

Table 39: Infrastructure..........................................................................................109

Table 40: Financial distress...................................................................................111

Table 41: Audit outcomes......................................................................................113

Table 42: Municipal Managers...............................................................................114

Table 43: Chief Financial Officers..........................................................................114

Table 44: MM and CFO vacancies.........................................................................115

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Acronyms

AG Auditor-General

Capex Capital Expenditure

CEO Chief Executive Officer

CFO Chief Financial Officer

CoGTA Department of Cooperative Governance and Traditional Affairs

CSP Cities Support Programme

DBSA Development Bank of Southern Africa

DCOG Department of Cooperative Governance

DHS Department of Human Settlements

DPME Department of Monitoring and Evaluation

DRDLR Department of Rural Development and Land Reform

DTI Department of Trade and Industry

DWS Department of Water and Sanitation

EC Eastern Cape

FBS Free Basic Services

FET Further Education and Training

FS Free State

GAU Gauteng

GDP Gross Domestic Product

HoD Head of Department

HIV Human Immunodeficiency Virus

ICT Information and Communication Technology

IDC Industrial Development Corporation

IDP Integrated Development Plan

ILO International Labour Organisation

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IUDF Integrated Urban Development Framework

KZN KwaZulu-Natal

LGSETA Local Government Sector Education Training Authority

LIM Limpopo

MDB Municipal Demarcation Board

MEC Member of the Executive Committee

MFIP Municipal Finance Improvement Programme

MFMA Municipal Finance Management Act

MIIF Municipal Infrastructure Investment Framework

MISA Municipal Infrastructure Support Agent

MM Municipal Manager

MPAC Municipal Performance Audit Committee

mSCOA Municipal Standard Chart of Accounts

MP Mpumalanga

NC Northern Cape

NDP National Development Plan

NEMA National Environmental Management Act

NT National Treasury

NUSP National Upgrading Support Programme

NW North West

OECD Organisation for Economic Cooperation and Development

Opex Operating Expenditure

PGDP Provincial Growth and Development Plan

PIT Personal Income Tax

ppsk persons per square kilometre

RDLR Rural Development and Land Reform

RSA Republic of South Africa

xii

SALGA South African Local Government Association

SANBI South African National Biodiversity Institute

SAPS South African Police Service

SARS South Africa Revenue Service

SDBIP Service Delivery and Budget Implementation Plan

SDF Spatial Development Framework

SEZ Special Economic Zone

SIP Strategic Infrastructure Project

SPLUMA Spatial Planning and Land Use Management Act

Stats SA Statistics South Africa

TB Tuberculosis

TVET Technical and Vocational Education and Training

WC Western Cape

WSDP Water Service Development Plan

WWTW Wastewater Treatment Works

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1. Introduction

Governance is affected by the management and technical experience available in an

organisation. In South Africa, there is ‘unevenness in capacity that leads to uneven

performance in local, provincial and national government. This is caused by a

complex set of factors, including tensions in the political-administrative interface,

instability of the administrative leadership, skills deficits, the erosion of accountability

and authority, poor organisational design and low staff morale’1.

The Local Government: Municipal Structures Act makes provision in Section 85 for

the Municipal Demarcation Board (MDB) to assess the capacity of municipalities and

through that provide advice to MECs when they consider changes to the existing

division of powers and functions across district and local municipalities. The

capacity of municipalities to perform functions is also to be considered by the MDB

when redetermining municipal boundaries.

The MDB has prepared numerous capacity assessments over the past decade, in

fulfilling its mandate to assess municipal capacity and make recommendations

where requested. More recently, these assessments have also included external

environmental or socio-economic drivers of capacity.

This project therefore aims to collect and analyse data and information on municipal

capacity to perform all municipal powers and functions as set out in Schedules 4 Part

B and 5 Part B of the Constitution of the Republic of South Africa. In addition, the

project addresses the MDB’s expanded scope of the municipal capacity

assessments to include an assessment of the governance and

resource/environmental situation in each municipality.

Specifically, the project aims to:

Allow the MDB to take informed decision when determining and re-

determining municipal boundaries.

1 2030 National Development Plan1

Assess the capacity of municipalities to perform all municipal powers and

functions as espoused in Schedule 4B and 5B of the Constitution and Section

84 of the Local Government: Municipal Structures Act.

Collect and provide data and information to be utilised for the determination

and redetermination of municipal boundaries.

Provide information which will allow for the MDB to provide advice to MECs

for them to adjust powers and functions between Category B and C

municipalities in terms of Section 85 of the Municipal Structures Act.

The overall aim is to provide a national overview of the distribution of powers and

functions at a non-metropolitan level, including here an assessment of existing

capacity to execute these functions. This data provides a benchmark to better

inform particularly MECs on the overall shape of powers and functions across South

Africa so that if and when they request the MDB to provide advice on the possible

division of powers and functions they can do so informed by the division of functions

across South Africa as a whole and within their province in particular.

In order to do this, the project has gathered as much information as possible to

examine the capacity of municipalities to perform their powers and functions, within

the environmental (economic, social, spatial, etc.) conditions in which they find

themselves. This includes information on:

1. Planning capacity, and particularly the role of district municipalities in terms of

the legal framework

2. Financial capacity: Evaluation of factors used and sources of revenue,

including challenges

3. Delivery capacity: Evaluating the division of powers and delivery of functions

relative to backlogs,

4. Administrative capacity, including ICT and human resource profiles

5. Geographical challenges.

The objectives of the municipal reports are to provide an overview of the

environmental situation of the municipality, and then to provide a summary of

capacity information as provided by each municipality.

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1.1 Methodology

In June 2018, municipalities were asked to participate in this project. Information

was requested on the degree to which they are both performing their legislated

and/or assigned powers and functions, and the existing capacity and competencies

in each municipality. Provinces were also requested to assist in this process.

The questionnaire covered three areas:

1. General information about the municipality: This includes contact details,

its leadership, budget, services, administration and governance;

2. Senior management details: This section requests information on each of

the senior managers;

3. Powers and functions: Information on which powers and functions are

being performed by the municipality, and the capacity to do so.

Once the questionnaire was completed, the municipal manager submitted this to the

service provider. Data was checked, and queries were addressed with municipalities

where necessary. Information pertaining to the environmental situation of each

municipality was sourced from relevant government departments or national

organisations, such as Stats SA, National Treasury, CoGTA etc.

It was expected that the data could be collected over a six-week period, but,

unfortunately, many municipalities have failed to complete this, in spite of extensive

communications with municipalities: over 7000 calls received and calls made to

municipalities across South Africa encouraging them and assisting where necessary,

with almost 2000 emails being sent to municipalities. In addition, all Municipal

Managers, Mayors and their offices were contacted to improve response rates.

MINMEC had also resolved that COGTA departments should ensure responses

were completed by mid-October 2018. In terms of this, on a weekly basis HoDs of

COGTA in each province have been contacted providing them with updates and in

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some cases, this has assisted in improving response rates. Whilst some

municipalities provided all the information required, around 20% did not.

1.2 Additional data sources

A wide variety of municipal information was also sourced from organisations such as

Stats SA, SARS, LGSETA, National Treasury and the like. Some of these data were

used to prepopulate the questionnaire allowing municipalities to both verify the

information and/or update it. This data is also presented below in providing a

situational overview of each municipality.

1.3 Comparative analysis

Municipalities in South Africa are categorised as being either Category A

(Metropolitan Areas) or Category B (Local) within Category C (District) municipalities.

Further classifications have been provided such as the Municipal Infrastructure

Investment Framework (MIIF) classification. This divides Category B municipalities

into four groups made up of the larger ones that exercise more powers to smaller

ones, with fewer resources and exercising relatively few powers (B1 through B4).

Category C municipalities are divided into two groups based on those which are

water authorities and those which are not. Specifically, the MIIF classification for

local and district municipalities is as follows2:

B1: Secondary cities: the 21 local municipalities with the largest budgets.

B2: Municipalities with a large town as core.

B3: Municipalities with relatively small populations and a significant proportion

of urban population but with no large town as core.

B4: Municipalities which are mainly rural with, at most, one or two small towns

in their area.

2 DBSA, MIIF 74

C1: District municipalities that are not water services providers and generally

have few service delivery functions.

C2: District municipalities that are water services providers and often have

substantial obligations.

For purposes of benchmarking of the municipalities in the following sections, the

MIIF classification provides a useful means of measuring the municipality’s

characteristics against other Category B/C municipalities. In all of the sections and

subsections below, the information is also compared with benchmarks: District to

District, Category B to Category B, etc.

1.4 The municipal report

The objectives of the municipal reports are to provide an informational overview of

the environmental situation of the municipality, reviewing the demographic and social

context, the economic context, land and human settlements, movement and

transport, infrastructure and service provision, and the environment. The municipal

reports then provide a review of the governance situation in each municipality, and a

high-level review of municipal capacity, looking at general staffing, management,

financial and governance information as well as details on capacity by function.

1.5 Overview of municipality

Stats SA provide a useful narrative overview of every local municipality in South

Africa3:

Musina in the Limpopo Valley is the northernmost town in South Africa. Situated

close to the Beit Bridge border post between South Africa and Zimbabwe, it is the

main entry point into the country from countries north of South Africa.

3 Stats SA, http://www.statssa.gov.za/?page_id=9645

The town developed around the copper mining industry in the area. Copper was first discovered in pre-historic times by the Musina people who named it ‘musina’, meaning ‘spoiler’, because they considered it a poor substitute for iron, which is what they were after.

The mineral was later re-discovered and mined by 20th century miners. Today iron, coal, magnetite, graphite, asbestos, diamonds and copper are mined here. With fascinating attractions and many game farms in the area, tourism and hunting play an important role in the economy of the town.

The recently declared world heritage site of Mapungubwe (meaning ‘Hill of the Jackal’) is one of the richest archaeological sites in the country. Botanical highlights of the region include fine specimens of baobab trees and impala lilies which are both protected species. Agricultural products include citrus, mangoes, tomatoes and dates.

A detailed map of the municipality is contained below, highlighting major roads,

relevant areas of interest such as airports and ports, as well as areas of significant

population density.

Figure 1: Municipal context

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2. Environmental situation

This section of the report focuses on the broader demographic/social and economic

context, physical environment and infrastructural base, employment dynamics etc. of

the municipality. Through tables and figures, benchmarks are provided to indicate

the challenges and opportunities facing the municipality.

The information is drawn from the following sources, where available:

o The National Development Plan

o Provincial Growth and Development Plans

o Municipal IDPs and SDFs.

o Stats SA:

o Census 2001 and 2011

o Non-Financial Census, 2016 and 2017

o Community and Household Surveys

o Financial Census, 2016 and 2017

o Other data such as National and Provincial GDPs etc., as indicated

below

o SARS:

o Personal tax data at a municipal level

o COGTA:

o Senior management

o Amalgamations

o IUDF

o National Treasury:

o S41 reports

o Mid-year and budget assessments where reports have been completed

o Financial Distress information

o State of Local government reports

o Infrastructure data

8

o Department of Environment:

o SANBI database on municipal environmental information

o Hazard and other Physical environmental databases

o Other information of a geographic character, such as climate, types of

vegetation, soil conditions, rainfall patterns, air quality, river systems,

etc.,

o Department of Water and Sanitation

o Blue Drop and Green Drop status where available

o Water and sanitation services (Access levels, backlogs, projects

underway, plans for the future by all spheres of government, and water

catchment areas etc)

o Water and sanitation infrastructure

o Department of Agriculture and Forestry Affairs

o Land use evaluations

o Types of farming e.g. Forestry, fishing and crop, livestock etc. (include

the levels and extent of each or their contribution to the economy in the

area.

o Existing and future government planned agricultural projects.

o Predominant agricultural products or activities.

o Human Settlements

o Housing projects underway

o Building plans passed

o Access to housing (backlogs, number of people with access to

housing)

o Planned housing projects

o Land use patterns and plans

o Justice and correctional services, Safety and Security

o SAPS crime statistics

o Police stations including satellite stations (including policing districts)

o Magisterial districts (including offices)

o Courts (including location)

9

o Correctional centres

o Transport

o Roads and all transport Infrastructure (e.g. Airports, harbours etc.)

o Commuting (Subsidised bus transport and routes thereof, formal taxi

ranks and train services)

o freight services

o Transport plans by all spheres of government

o Department of Basic Education and Dept of Higher Education:

o Matric results

o Examination centres

o Schools

o Learners and educators

o Universities and TVET colleges

o Graduates

o Education districts

o Local Government Sector Education Training Authority

o Skills profiles for municipalities

o Department of Rural Development and Land Reform and Department of

Traditional Affairs:

o Land claims

o Traditional communities

o DTI and IDC:

o SIPs

o SEZs

o Plans passed

o Types of industry and the predominant manufacturing products

o Department of Tourism

o Tourism products/tourist attractions

o Contribution to the economy of the municipal area

o Department of Minerals:

o Mining licences10

o Operational mines and employment levels

o Eskom

o Access to electricity

o Backlogs and plans for the future

o Electricity infrastructure (location of Power stations, power lines, etc.

o Telkom and other telecommunication companies

o Access to services

o Infrastructure roll out

o Plans for the future

o Department of Health

o Health districts (spatial coverage per municipality)

o Hospitals

o Clinics or health centers

o Plans for the future

o Other sectoral surveys

In the subsections which follow, indicators developed from data provided in these

reports is used to describe the broader municipal area.

2.1 Demographics

2.1.1 Population

The figure below contains details of population dynamics within the municipality.

This includes the total population and growth rate, the gender breakdown of this

population and total number of households. It provides information on the following4:

Population: The total number of people living within a specified area of

jurisdiction;

Population growth rate: The overall growth rate in population between the

2001 and 2011 censuses;

4 Stats SA: Census11

Sex Ratio: The sex ratio provides an indication of the gender breakdown in an

area, and it is suggestive of the composition of the labour force. Sex ratios

will be affected by sex-selective out-migration such as men migrating.

Migrant labour-receiving areas usually have higher sex ratio figures (i.e. more

males to females) as the migrants are usually male. South Africa’s average

sex ratio is around 0,95, that is 95 men to 100 women. Lower sex ratios are

found in areas with a higher number of female-headed households, where

household sizes are generally larger, with higher dependency levels5.

Figure 2: Demographic overview

The following figure further breaks down the broad population by race. It indicates

the proportion of people of African origin, as well as other black South Africans

(people designated previously as Coloured and Indian) as well as people previously

designated as white. Given the history of apartheid, places with generally higher

proportions of minorities (such as whites) have been massively advantaged in

economic and other terms.

Figure 3: Racial breakdown

5 Demographics and Social; Stats SA: Census12

2.1.2 Age structure

The distribution of the population by age is also provided in the figure below with age

groups including those younger than school-going age (0-4 years), school going (5-

19 years), youth (20-29), general working age (30-64) and elderly (over 65 years of

age).

Figure 4: Age breakdown

2.1.3 Households and density

In examining the distribution of households, it is important to consider the definition

of households by Statistics SA. A household is seen as a group of persons who live

together and provide themselves jointly with food or other essentials for living, or a

single person who lives alone. Live-in domestic workers and live-in employees are

regarded as separate households. This is important in that when one examines

consumer units provided by municipalities in the sections below, such units could

consist of more than one household.

The following figure indicates the overall number of households in the municipality

compared with its area.

Figure 5: Number of households and municipal area

13

Importantly, though, the relative size of households and the density of population are

more useful indicators of human settlements and the extent to which municipalities

need to respond to challenges. This is particularly the case for relatively small

households (1-2 persons) and large (over 5 persons) households. Both provide

challenges for municipal planning and service delivery: small households hold out

the possibility, if linked to chain migration, that larger households will come into the

municipalities once a person’s employment becomes more stable, and larger

households often place an additional strain on the delivery of basic network services.

In other words, these data indicate the degree to which there could be migrancy

operating, particularly in the larger urban areas where one could find a higher

proportion of 1-2 persons households than in other areas. Likewise, larger

households could also indicate a degree of mutual aid existing not just for familial

reasons, but to cope with the effects of apartheid and unemployment.

The following figure provides information on:

The proportion of households consisting of one or two persons; and

The proportion of households consisting of over five persons.

Figure 6: Household size

The figure below highlights population density within the municipality. Population

density is a measurement of the number of people living within a physical area.

Examining changes to populations living in different densities gives a sense of the

change in the municipality in terms of settlement patterns. The OECD has argued

that a broad norm on what is rural would be persons living in areas with density

below 150 persons per square kilometre (ppsk). For purposes of this analysis, three

different density groups have been defined:14

Those less than 500 ppsk (low density and rural),

500-1000 ppsk (medium density); and

Over 1000 (very high) density.

The following two figures then shows both the area occupied by each of these

density groups and the percentage of people living in each of the density groups.

Figure 7: Percentage population by density

Figure 8: Percentage municipal area by density

2.1.4 Income, tax and employment

Income levels in the municipality are detailed in the figure below. Whilst this is

normally achieved by breaking the population up into quintiles of 20% of the

population, given the unequal distribution income in South Africa the use of quintiles

will not show the real gap between high and low earners. As a result, a wider range

of income distributions is used. The figure examines income distribution across the

15

municipality, through a number of categories of individual income being provided,

such as those households with6:

No income;

R1-R19600 income per annum;



> R614000 income per annum.

Figure 9: Household income

The personal tax base of the municipality is also a key economic indicator. This

indicator shows the average amount of Personal Income Tax (PIT) paid within each

municipal area. PIT is a tax levied on the taxable income (gross income less

exemptions and allowable deductions) of individuals and trusts. Most individuals

receive their income as salaries or wages, pension or annuity payments and

investment income (interest and dividends). Some individuals, such as sole

proprietors and partners, may also have business income which is taxable as

personal income. PIT is South Africa’s largest source of tax revenue and

contributed 35.9% of total tax revenue collections in 2014/15. It contributed 34.5% in

2013/147. For the 2016 year of assessment the following tax thresholds (i.e. the

amount above which income tax becomes payable) existed:

Younger than 65 years – threshold = R73 650 per annum;

65 years of age or older – threshold = R114 800;

For taxpayers aged 75 years and older, this threshold was R128 500.

6 Stats SA7 Tax Statistics 2015

16

By 31 March 2014, the Personal Income Tax register had grown 8.8%, compared

with the previous year, to more than 16.8 million individuals. Ideally, it should be read

also with business tax records, but these are not available.

In the following figure, the total amount of personal income tax generated and paid

by individuals within the municipality is detailed. In addition, data on the proportion

of taxpayers to the total population is provided. An indicator showing the number of

taxpayers, based on the above definition, per 100 persons living in the municipality is

also included.

Figure 10: Tax base

The form of employment is also an important indicator. Informal employment

identifies persons who are in precarious employment situations irrespective of

whether or not the entity for which they work is in the formal or informal sector.

Persons in informal employment therefore comprise all persons in the informal

sector, employees in the formal sector, and persons working in private households

who do not get basic benefits such as pension or medical aid contributions from their

employer, and who do not have a written contract of employment8.

The youth unemployment rate refers to unemployed youth, i.e. individuals aged 15 –

24 who are without work, actively seeking work in a recent past period (past four

weeks), and currently available for work. Discouraged workers or hidden

unemployed are not counted as unemployed or as part of the labour force. Not

actively seeking work refers to people who have not taken active steps to seek work

(i.e. job searches, interviews, informational meetings etc.) during a specified recent

period (usually the past four weeks).

Lastly, here, the unemployment rate is provided showing the number of unemployed

persons as a proportion of the number of persons currently active in the labour force.

8 Stats SA17

Unemployment refers to individuals without work, who are actively seeking work in a

recent past period (past four weeks), and are currently available for work. Persons

who did not look for work but have a future labour market stake (arrangements for a

future job start) are counted as unemployed9.

The following figure provides information on formal to informal employment, the

municipality’s unemployment rate, as well as the youth unemployment rate.

Figure 11: Employment

The next figure looks at employment by sector of the economy. The indicator shows

the percentage of people employed in the various sectors of the economy. The

sectors are an aggregation of the Standard Industrial Classification (SIC) sectors10.

The aggregated sectors are:

Agriculture, forestry and fishing

Community and social services

Construction

Electricity, gas and water

Financial and insurance activities

Manufacturing, mining and quarrying and other industrial activities

Mining and quarrying

Other service activities

Private households

Transport

9 International Labour Organization10 Refer to Stats SA, SIC 7th Classification, October 2012

18

Wholesale and retail trade, transportation and storage, accommodation and

food service activities

Figure 12: Percentage total employment by sector

Two indicators of income inequality have been included in this analysis: the

municipality’s dependency ratio and the Gini coefficient. The dependency ratio is an

age-population ratio of those not in the work force (the dependent part) and those

who are working (the productive part). It is used to measure the pressure on the

productive population. The Gini coefficient, on the other hand, measures the degree

of inequality in a set of data and is frequently used as a method of measuring

inequalities in income distribution in a population. The Gini coefficient ranges from 0

(everyone has the same income) to 1 (one person has all the income).

Figure 13: Dependency and inequality

2.2 Land and Human Settlements

19

2.2.1 Land claims

A land claim is a request for the restoration of a right in land, lodged with the

Commission on Restitution of Land Rights. Anyone who was dispossessed of a right

in land after 19 June 1913 as a result of past racially discriminatory laws or practices,

and who did not receive just and equitable compensation at the time of

dispossession, can lodge a claim for the restoration of such a right, or equitable

redress11.

The table below highlights the total area of the municipality under a land claim

process.

Table 1: Land claims

Sum of Land Claims

LIM341 433,897

LIM total 4605,61

SA total 20617,156

2.2.2 Traditional communities

It is important to recognise that the effects of apartheid remain writ large through our

country. Historically, traditional authority areas and areas in which homelands were

designated were particularly underdeveloped. The following figure indicates a few

measures of this underdevelopment through showing:

The percentage of wards in which there are traditional authorities;

The percentage of land coverage of the municipality in which traditional

authorities are found; and

The percentage of land in the municipality which was previously part of a

homeland.

Figure 14: Land area containing traditional authorities and which were part of homelands

11 http://www.ruraldevelopment.gov.za/component/content/article/347-land-claim/re-opening/771-

faq#.W2AQ_NIzY2w20

Further information on the details of traditional leaders can be obtained from the

National House of Traditional Leaders (www.cogta.gov.za).

2.2.3 Access to housing

One of the most important indicators of backlogs in service delivery is provided

through examining the number of people living in informal settlements. Stats SA

defines an informal settlement as an unplanned settlement on land that has not been

surveyed or proclaimed as residential, with housing that consists mainly of informal

dwellings. This is particularly the case in more urban municipalities and the figure

below compares the numbers and area occupied by people living in formal and

informal human settlements.

Figure 15: Percentage of population living in informal settlements

The following figure then examines population density in formal and informal areas.

Figure 16: Density of formal and informal areas

Secure tenure refers to the right of all individuals and groups to effective protection

against forced evictions and is the arrangement under which a household occupies 21

its dwelling. People have secure tenure when there is evidence of documentation

that can be used as proof of secure tenure status or when there is either de facto or

perceived protection against forced evictions.

The figure below examines security of tenure through an assessment of tenure by

ownership type:

Occupied rent free

Owned (not yet paid off and mortgaged)

Paid off

Rented

Figure 17: Percentage of households by tenure

2.2.4 Types of housing

The figure below looks at the percentage of households by dwelling type. This

indicates the type of dwelling that residents live in (except for those living in

collective living quarters and other institutions). Dwelling types are classified by

Stats SA as follows:

1. Formal Dwellings

a. House or brick/concrete block structure on a separate stand or yard or

on a farm

b. Flat or apartment in a block of flats

c. Cluster house in complex

d. Townhouse (semi-detached house in a complex)

22

e. Semi-detached house

f. House/flat/room in backyard

g. Room/flatlet on a property or larger dwelling/servants quarters/granny

flat

2. Traditional Dwelling

a. Traditional dwelling/hut/structure made of traditional materials

3. Informal Dwelling

a. Informal dwelling (shack, in backyard)

b. Informal dwelling (shack, not in backyard, e.g. in an informal/squatter

settlement or on a farm)

4. Other

a. Caravan/tent

b. Other and unspecified

Figure 18: Dwelling type

2.2.5 Land use

Land capability is a broad system of categorising land based on issues such as soils,

climate, erosion hazard and slope. It considers the risks of land damage from

erosion and other causes; and the difficulties in owning land owing to physical land

characteristics. Land capability classes are interpretive groupings of land units with

23

similar potentials and continuing limitations or hazards. Land coverage, on the other

hand, is the degree to which particular uses dominate the landscape.

The following figure provides a summary of the degree to which the area of the

municipality is/has:

Plantations

Water bodies

Mines

Degraded

Cultivated

Built up

Natural

Figure 19: Land cover

2.3 Infrastructure and Service Provision

Municipalities are often measured by the degree to which they deliver on a set of

basic network services: water, sanitation, energy, transport/roads and solid

24

waste/cleansing. This section reviews the degree of access to these areas,

including the number of consumer units billed by municipalities.

Service provision

The percentage of households with access to potable water is contained below. In

addition, information around access to an improved water source, and the number of

domestic and non-domestic users receiving water from the municipality is provided.

Potable water refers to water that is treated or confirmed safe for human

consumption. A potable water supply service refers to a service that delivers potable

water through a pipe or similar duct that is connected to a network, the supply of

which is relatively continuous given that it includes a deposit built for its storage. If a

house or group of houses has a ‘mother’ pipe connected either provisionally or

permanently; it shall be considered to have access to potable water. “A house shall

not be considered to have access to potable water when an individual house or

group is served by a conduit system built with for example wood, bamboo, or rubber

hose, connected directly to a river, well, or to another house”12.

Access is usually considered to be within 200m of the house, although in the figure

below the proportion of households getting access to potable water in their house or

ward is measured. The percentage of the population with sustainable access to an

improved water source represents the percentage of the population with reasonable

access to an adequate supply of safe water in their dwelling or within a convenient

distance of their dwelling. Reasonable access to water is defined as the availability

of at least 20 litres of water per person a day from a source within one kilometre of

the dwelling.

In terms of sanitation, the indicator used by Stats SA refers to the collection, removal

or disposal of human excreta and household waste water. Stats SA defines

waterborne sanitation as a:

Flush toilet connected to a sewerage system;

Flush or pour-flush to piped sewer system, septic tank or pit latrine;

12 StatsSA25

Ventilated improved pit latrine;

Pit latrine with slab.

Again, a measure is provided of wastewater provision to both domestic (households)

and non-domestic users i.e. commercial, industrial and other facilities.

A high-level overview of access to electricity in the municipality is contained in the

figure below i.e. the percentage of households with connections to the electricity.

This measure provides information on the level of electricity provision to residents

within a municipal area of jurisdiction. This includes the number of domestic and

non-domestic users receiving electricity from the municipality.

Regular solid waste collection is defined as having the solid waste picked up from a

household, transported and taken to a proper treatment facility (recycling or landfill

sites) on at least a weekly basis. Solid waste collection by an entity that is not legally

constituted is not included in this definition. The indicator measures solid waste

provision to both domestic (households) and non-domestic users, i.e. commercial,

industrial and other facilities.

Figure 20: Access to services

Figure 21: Number of consumers billed

26

Information on the municipality’s current and future infrastructure plans can be

obtained from their Integrated Development Plans and Spatial Development

Frameworks, available at www.musina.gov.za

.

2.3.1 Movement and Transport services

Transport infrastructure

Measuring the various types of transportation infrastructure provides information on

travel behaviour through the use of cars as a travel mode providing access to work,

shopping, school and other community services. This measure can also inform the

need for further transport facilities. Unfortunately, detailed information on commuter

flows, modal split and the like is not available in a standardised format from which

municipalities can be benchmarked. However, the figure below provides information

on the extent of road infrastructure, including major roads, the kilometres of road by

surface type, and the length of national and provincial roads13.

Figure 22: Road length by road type and surface

13 Department of Transport27

2.3.2 Education services

This section looks at education levels in the municipality. This includes a measure of

the level of education, the matric pass rate, and the percentage of the population in

the school-aged cohort, that are enrolled in some form of education.

Educational infrastructure (schools and tertiary institutions)

It is also important to reflect on the degree to which municipalities have the same

levels of educational infrastructure. Educational infrastructure examines information

such as the number of educational facilities in the area. The figure below provides

such information including:

Number of primary schools per 10 000 people14

Number of high schools per 10 000 people

Number of tertiary institutions per 10 000 people

Figure 23: Educational infrastructure per 10 000 population

Matric results and learners in school

The figure below details the overall results of the final examination for Grade 12

learners in a school, which is to some degree indicative of the quality of education

within different institutions15. It also indicates the percentage of the population in the

school aged cohort (between and including ages 5 – 18) who are currently enrolled

in education.

Figure 24: Matric pass rate and percentage of youth in school

14 Department of Basic Education15 Department of Basic Education

28

The following table indicates the number of schools and learners registered in the

municipality in 2017.

Table 2: Schools and learners

Schools Educators Learners

LIM341 69 932 19174

Limpopo 3944 60044 1471164

South Africa 24813 462306 11496699

Level of education

The figure below provides a measure of the level of education described as a

percentage, for each education level including:

No schooling

Some schooling

Complete primary

Some secondary

Matric

Higher education

Figure 25: Percentage population by level of education

29

2.3.3 Health services

An analysis of information at a district level on some aspects of the state of health in

the area has also been completed16. The following variables are included:

PHC expenditure per capita: Provincial expenditure on sub-programmes of

DHS plus net local government expenditure on PHC per uninsured

population;

Children under 5 who died of diarrhoea: This is the proportion of children

under 5 years admitted to medical centres with diarrhoea who died;

Children under 5 dying from severe malnutrition: Proportion of children under

5 years admitted with severe acute malnutrition who died

TB deaths: The percentage of TB clients (all types of TB registered in

ETR.net) who died.

The HIV positive rate: The percentage of clients (including ANC first and re-

test clients) who tested positive for HIV; and

Medical aid schemes coverage: Percentage of population who have medical

scheme insurance.

The following figure provides a summary of how the municipality compares against

the province and nationally on these indicators.

Table 3: Key health statistics

DM CODE

PHC Exp pc 2016

<5 yrs deaths Diarrohea

<5 yrs deaths Sev

TB deaths 2015

HIV pos 15+ 2016

Med Scheme

16 Naomi Massyn, Ashnie Padarath, Nazia Peer and Candy Day, 2016/17 District Health Barometer, Health Systems Trust

30

2016 Mal 2016 cov 2016

DC34 941,675878

484746

1,04223806

911684

7,35849056

603774

8,12284730

195178

3,60451840

039664

6,38557711

731591

Limp

opo

861,151400

758633

2,31602147

34693

8,99948050

601452

11,9600846

560179

5,06103304

431182

7,27618850

463169

Grand Total

1093,38924982994

2,18458895611585

7,26992129624842

7,73058723917573

7,44779736130905

12,8609337977168

2.3.4 Safety and security

Crime statistics

The following figure details crime levels in the municipality. This includes:

Murders and culpable homicides per 100 000: Murder is defined as the

unlawful death inflicted upon a person with the intent to cause death or

serious injury. This is apportioned as a rate per 100 000 population17;

Crimes against property per 100 000: This indicator highlights the crimes

committed against all types of property in a particular area of jurisdiction for a

relevant calendar year. This is apportioned per 100 000 population;

Violent crime per 100 000: The number of violent crimes is an indicator of the

amount of serious criminal offences in an area and a lead indicator of feelings

of personal safety. The number of violent crimes in an area is considered a

benchmark measure of the overall level of safety in the area.

In this municipality, crime levels are as follows:

Figure 26: Crime levels

17 SAPS31

2.4 Economic development

2.4.1 Mining

The following figure indicates the proportion of wards in the municipality that have

active mines in them, as well as the proportion of the area of the municipality which

has potential licences for prospecting.

Figure 27: Active mines and mining licences

2.4.2 Tourism

Tourist attractions and/products

Another area in which municipalities often focus their attention is the tourism sector.

The following figure indicates, for example, the proportion of area of the municipality

which consists of various categories of land usage which assist in enhancing the

tourism potential. These include:

Percentage local reserves

Percentage conservation areas, coastal catchments and protected areas

32

Percentage forests

Percentage game reserves

Percentage national Parks

Figure 28: % of land with natural heritage assets

2.4.3 Telecommunication infrastructure

ICT access to fixed and unfixed lines

Importantly, is the degree to which a municipality’s population is linked into ICT, with

the importance reflecting the degree to which a municipality is able to respond to the

opportunities of the fourth industrial revolution.

The following figure looks at access to telecommunications. This includes:

The number of people in the country who have access to land line telephone

communication

The number of people who have access to mobile phone communication. This

is different from landline connections in that mobile phones offer other

features and modes of communicating, for example, texting. It also allows

people to use the phone for access to the internet and provides users with

access freely, i.e. without being bound by the location of the

telecommunication facility.

The level of internet penetration in the country per jurisdiction.

Figure 29: Access to telecommunications

33

2.5 Other government services infrastructure

Some of the social, economic and governmental infrastructure available in the

municipality is also highlighted here. The following figure indicates, for example,

comparative data on some aspects of the infrastructure found in the municipality,

such as:

Private Hospitals per 100 000 people

State Hospitals per 100 000 people

Clinics per 100 000 people

Police stations per 100 000 people

Rail length in kms per 100 000 people

Airports (local and provincial) per 100 000 people

Figure 30: General infrastructure

34

Military installations

Information on the location and contact details of military installations in each

municipality can be found at the following website:

http://www.army.mil.za/contactus.htm

Ports of entry

Information on the location and contact details of military installations in each


http://www.dha.gov.za/index.php/immigration-services/south-african-ports-of-entry

Home affairs and South African Security Services

Information on the location and contact details of Home Affairs offices in each


http://www.dha.gov.za/index.php/contact-us

2.6 Environment, Natural Features and Endowments

Climate change will have an impact on water, agriculture and many other human

activities. Some 39 key impacts have been identified. The next table provides a

summary of the key issues noted by municipalities in the district when analysing the

impacts of climate change18. These 39 potential impacts and the degree to which

they could affect specific districts is recorded. The first column of the table below

shows how many of the 44 districts indicated whether the impact needs to be

planned for, with the second column showing the percentage of districts so affected.

The third column indicates for this district whether or not it rated it as a critical issue

for consideration:

Table 4: Potential impacts of climate change

18 Department of Environmental Affairs 2018. Local Government Climate Change Support Program (LGCCSP) District Municipality Priority Climate Change Indicators.

35

Climate Change Impact

# Districts %Districts DC34

9 Change in grain

(maize, wheat &

barley) production

19 43,2 Yes

20 Increased

impacts of flooding

from litter blocking

storm water and

sewer systems

13 29,5 Yes

2 Decreased water

quality in ecosystem

due to floods and

droughts

27 61,4 Yes

3 Less water

available for

irrigation and

drinking

28 63,6 Yes

8 Increased

migration to urban

and peri-urban

areas

21 47,7 Yes

10 Increased

Occupational health

problems

19 43,2 Yes

14 Increased heat

stress

15 34,1 Yes

19 Health impacts

from increased

storm events

13 29,5 Yes

22 Increased water

borne and

communicable

10 22,7 Yes

36

diseases (e.g.

typhoid fever,

cholera and

hepatitis)

3. Governance assessment

While the first part of each municipal profile contained an overview of the general

environmental situation in each municipality (demographic and social context, the

economic context, land and human settlements, movement and transport,

infrastructure and service provision, and the environment), it is relevant also to

assess the municipality’s general governance, through findings such as their audit

scores and other financial indicators, voter turnout and municipal staffing information.

3.1 Financial overview

Local government audit outcomes are detailed below and are indicated by the

following:

Unqualified with no findings – The municipality was able to produce financial

statements free of material misstatements (material misstatements mean

errors or omissions that are so significant that they affect the credibility and

reliability of the financial statements); measure and report on their

performance in accordance with the predetermined objectives in their IDPs

and/or SDBIPs in a manner that is useful and reliable; and comply with key

legislation (Score 5 in analysis below).

Unqualified with findings – The municipality has been able to produce

financial statements without material misstatements, but has struggled to align

37

their performance reports to the predetermined objectives to which they had

committed in their IDPs and/or SDBIPs; set clear performance indicators and

targets to measure their performance against their predetermined objectives;

report reliably on whether they had achieved their performance targets; and

determine which legislation they should comply with, and implement the

required policies, procedures and controls to ensure that they comply (Score

4 in analysis below).

Qualified with findings – These municipalities face the same challenges as

those that were financially unqualified with findings in the areas of reporting

on performance and compliance with key legislation. In addition, they were

unable to produce credible and reliable financial statements. Their financial

statements contain misstatements which they could not correct before the

financial statements were published (Score 3 in analysis below).

Adverse with findings - The financial statements of these municipalities have

so many material misstatements that the Auditor-General (AG) disagrees with

virtually all the amounts and disclosures in the financial statements (Score 1

in analysis below).

Disclaimed with findings - Those municipalities could not provide evidence for

most of the amounts and disclosures in the financial statements. The AG was

unable to conclude or express an opinion on the credibility of their financial

statements (Score 1 in analysis below).

Audit not finalised at legislated date (Not considered in averages).

New auditee (Not considered in averages).

The figure below provides the audit results for the municipality for the past three

financial years: 2014/15, 2015/16 and 2016/17. As indicated above, scores close to

1 indicate findings which are Adverse/Disclaimers, scores around 3 are Qualified and

scores close to 5 are Unqualified with no findings.

Figure 31: Audit outcomes

38

Measures of municipal finances look at financial distress information from National

Treasury, covering eight specific areas from the MFMA, with scores attributed to the

following eight variables:

Cash Coverage: this measures the amount of cash on hand a municipality

has to meet its monthly payments as and when they fall due. National

Treasury suggest that municipalities should have three months of average

operational expenditure available at any time.

Cash Balance: Identifies whether cash shortages / bank overdrafts pose a

‘chronic’ problem for the municipality.

Reliance on capital transfers: This determines the levels at which

municipalities are able to generate own funds to finance revenue generating

assets to enhance and sustain revenue generating streams

Overspending: This measures the overspending of operational budgets and

tests the effectiveness of municipal spending in accordance with resource es

available to them, what is the credibility of the budget and are municipalities

able to adjust expenditure should planned revenue not materialise.

Underspending of capital budgets: This shows the effectiveness of municipal

spending – but also provides an indication of whether municipalities are

compromising on capital programmes to resolve cash flow challenges, or

whether there are planning deficiencies which are impacting on service

delivery.

Debtors growth – this shows the year on year growth in debtors and provides

information on whether the municipality is exercising fiscal effort in collecting

outstanding debt. It demonstrates the extent to which financial distress is the

result of poor debtor management.

Debtors as a percentage of own revenue: this shows the revenue

management capabilities of municipalities.

39

Creditors as a percentage of cash: whether the municipality is able to meet its

monthly commitments.

Scores of 1, 2 or 3 are assigned to each municipality in terms of how they score on

each variable, with 3 being that they score poorly. These scores are added up and

those municipalities scoring between 17 and 24 are deemed to be financially

distressed.

Figure 32: Financial indicators

In addition, measures are also provided which detail aspects such as:

Whether or not a municipality is in financial distress based on these

indicators;

The degree to which a municipality (over the past three years) has underspent

its CAPEX;

Whether or not a municipality is subject to a Section 139 intervention;

Whether or not the Municipal Finance Improvement Programme operates in

the municipality; and

The total years in which a municipality has been in financial distress.

Figure 33: Further measures of financial performance

3.2 Voter turnout

40

In terms of governance, the first indicator represents the degree to which voters

participate in local elections. This is provided in the following figure, together with an

indicator showing the turnout of voters who have registered to vote as a percentage

of the voting population (age 19 and above).

Figure 34: Voter turnout and registered voters

3.3 Municipal staffing

The final set of data related to governance in the municipality examines the numbers

of municipal councillors and employees, including a focus on gender representation:

Number of elected councillors

Women as a percentage of total elected municipal councillors

Number of municipal officials per 100 000 population

Percentage of women employed in the municipal workforce

Figure 35: Municipal councillors and employees

41

4. Municipal Overview of Capacity

4.1 Staffing information

The table below provides an overview of staffing levels in the municipality, including

total staff currently employed, approved positions and funded vacancies. The table

below provides an overview of staffing levels in the municipality, including total staff

currently employed, approved positions and funded vacancies. For example, in this

municipality, 68,75% of staff are permanent employees. There is a vacancy rate of

46,55%.

Table 5: Staffing levels

LIM341

Total municipal staff currently employed 384

Total permanent currently employed 264

Total temporary staff currently employed 17

Total approved positions 724

Total funded vacancies 337

Percentage of funded vacancies 46,55

The qualifications of staff (from technical to postgraduate) are detailed below.

16,41% of staff have some form of tertiary qualification.

Table 6: General qualifications

LIM341

Number of staff with postgraduate degrees 9

Percentage of staff with postgraduate

degrees

2,34

Number of staff with Bachelors degrees 28

42

Percentage of staff with Bachelors

degrees

7,29

Number of staff with technical

qualifications

26

Percentage of staff with technical

qualifications

6,77

In 2007, National Treasury introduced minimum competencies for municipal officials

responsible for financial and supply chain management. This was done in order to

modernise and professionalise financial management in municipalities, in keeping

with the principles of accountability, transparency, effective and efficient utilisation of

public resources.

The regulations cover the following aspects for the relevant financial and supply

chain management positions: minimum higher education qualifications; work related

experience, core managerial and occupational competencies and the financial and

financial and supply chain management competencies that the relevant municipal

officials should have to enable them to discharge their responsibilities under the

MFMA and the related reforms.

A structured training programme was introduced in support of the minimum

competency requirements for existing and new incumbents in the municipal sector. A

graduate internship programme was also introduced and additional financial

resources were made available to municipalities in the form of Financial

Management Grant over the medium term. This was augmented by additional

funding from the donor community, LGSETA and municipal own resources19.

The table below indicates the number of people in the municipality that have

completed MFMA competency courses.

Table 7: MFMA competency

LIM341

Number of municipal officials that have 1719 National Treasury and CoGTA, Minimum competency levels for municipal officials effective from

October 2015, 30 September 201543

completed the MFMA Competency 1:

Budgetting

Number of municipal officials that have


Costing

17



Income expenditure

17



Ethics

17



IG Fiscal relations

2



Auditing planning implementation

17



Performance management

17



Internal control

17



Risk management

17



ICT and finance

17

44

The total number of days worked in the municipality is indicated in the table below,

as well as details on the total sick days taken in 2016/17.

Table 8: Total days worked

LIM341

Total number of days worked by staff

as a whole in 2016/17

91090

Total sick days as a whole in 2016/17 2049

Staff turnover, and specifically the total number of resignations and dismissals in

2016/17, are detailed below.

Table 9: Staff turnover

LIM341

Total resignations / contract endings in

2016/17

18

Total dismissals in 2016/17 0

4.2 Management overview

The table below provides an overview of senior management in the municipality,

including total number of Section 56 positions, as well as the percentage of

vacancies in 2016/17 and 2017/18. In this municipality, 60% of Section 56 positions

were vacant in 2016/17, while 80% were vacant in 2017/18.

Table 10: Senior management

LIM341

Total Section 56 positions in the

municipality

5

45

Percentage of Section 56 positions

vacant for more than three months in

2016/17

60

Percentage of Section 56 positions

vacant for more than three months in

2017/18

80

The following table provides information on the number of qualified engineers,

planners, accountants and environmental officers.

Table 11: Qualifications of professionals

LIM341

Qualified engineers and engineering

technologists

1

Qualified planners and planning

technicians

5

Qualified accountants 0

Environmental officers 36

4.3 Financial information

Municipalities were asked to provide information on their finances, including

expenditure, income, creditors etc.

In this municipality, there has been:

A 17,83% increase in operating expenditure, A 18,48% increase in capital budgets, and A 7,41% increase in staffing budgets.

The municipal budget per household rose from R 5745,71 in 2016/17 to R 6770,32 in

2017/18.

Table 12: Expenditure

46

LIM341

Total estimated operating budget

2017/2018

296066151

Actual operating budget 2016/2017 251259825

Total estimated capital budget

2017/2018

47468000

Total actual capital budget 2016/2017 40064000

Total estimated staff budget 2017/2018 104514082

Total actual staff budget 2016/2017 97306000

% of the budget in 2016/17 that was

used for IDP projects

12.39

% of the budget in 2017/18 that is

being used for SDBIP projects

10.51

The table below highlights municipal income in 2016/17 and 2017/18. The following

is noted:

There has been a 15,77% increase in rates income between 2016/17 and

2017/18.

Grants income in 2017/18 makes up 54,3% of the municipality’s total income.

There is an average of R 397,53 rates income per household in 2017/18, an

increase from R 343,38 in 2016/17.

Service charges in 2017/18 make up 39,87% of municipal income.

Table 13: Income

LIM341

Estimated rates income for 2017/2018 17384000

Actual rates income collected for

2016/2017

15016000

Estimated grant income for 2017/2018 161990221

47

Estimated grant income for 2016/2017 136666000

Total estimated income for service

charges for 2017/2018

118947000

Total actual income collected from

service charges for 2016/2017

102411000

Municipal creditors are detailed in the table below. There has been a:

98,63% increase in the amount owed to Eskom between 2016/17 and

2017/18

15,95% increase in the amount owed for audit fees between 2016/17 and

2017/18

Table 14: Creditors

LIM341

Amount owed at year-end to Water

Boards for 2016/17 financial year

0

Estimated amount owed to Water

Boards currently for 2017/18 financial

year

0

Amount owed at year-end to ESKOM

for 2016/17 financial year

56614877

Estimated amount owed currently to

ESKOM for 2017/18 financial year

112451503

Amount owed at year-end for Audit

fees for 2016/17 financial year

2595029

Estimated amount owed currently for

Audit fees for 2017/18 year

3008921

An analysis of rates shows the following:

48

37,68% of the municipal rates come from residential properties.

25,9% come from non-residential properties including business, commercial

and industrial.

22,83% come from state-owned properties.

12,66% come from farming or agriculture properties.

Finally, 0,92% come from other properties.

Table 15: Analysis of rates collected

LIM341

Rates collected from residential

properties (including Sectional Title) in

2016/17

4627747

Rates collected from non-residential

Properties

(Business/Commercial/Industrial) in

2016/17

3181353

Rates collected from state-owned

properties (other than municipal) in

2016/17

2804222

Rates collected from

farming/agriculture properties in

2016/17

1555246

Rates collected from other properties

in 2016/17

113084

In terms of national policy, municipalities should provide Free Basic Services to their

communities. The table below indicates whether free basic water and electricity is

provided, the quantity thereof, and the number of households benefitting from this

policy.

In this municipality, free basic services for water costs roughly 0,38% of the total

operating expenditure. This benefits 6,44% of households in the municipality.

49

Free basic electricity makes up approximately 0% of the total operating expenditure,

and benefits 6,52% of households in the municipality.

Table 16: Free basic services

LIM341

Free Basic Services policy (water) Yes

Quantity of free basic water 6

Cost to municipality for free basic

water

1123246

Number of households benefitting from

free basic water

2816

Free Basic Services policy (electricity) Yes

Quantity of free basic electricity 55

Cost to municipality for free basic

electricity

1597347

Number of households benefitting from

free basic electricity

2853

4.4 Governance

Governance is defined as the exercise of political, economic and administrative

authority in the management of a country’s (municipality’s) affairs at all levels. It

comprises the mechanisms, processes and institutions through which citizens and

50

groups articulate their interests, exercise their legal rights, meet their obligations and

mediate their differences.20

As one indication of governance levels in the municipalities, the following information

was requested:

Number of municipal council meetings

Number of MPAC meetings

Number of EXCO/Mayoral Committee meetings

Number of audit/risk committee meetings

Number of ward committee meetings

In terms of the Municipal Structures Act, 117 of 1998, Section 18(2), a municipal

council must meet at least quarterly. A municipal Council may also establish one or

more committees necessary for the effective and efficient performance of any of its

functions or the exercise of any of its powers (Municipal Structures Act, 117 of 1998,

Section 79). The table below provides an overview of the number of meetings held

in 2016/17 and 2017/18.

Table 17: Meetings held

LIM341 2016/17 2017/18

Council meetings 13 9

MPAC meetings 11 12

Exco/Mayco meetings 13 9

Audit and risk meetings 5 4

Ward committee meetings 72 88

The number of protests and petitions received by the municipality is detailed below.

In this municipality there has been a -50% change in protests and petitions received

by the municipality between 2016/17 and 2017/18.

20 UNDP Governance for Sustainable Human Development, New York, 1997, pp. 2-3. See also the draft Working Consensus Definition of

Governance presented to the U.N. Consultative Committee on Programme and Operational Questions ACC/ 2000/POQ/ CRP.20 of 14

September 2000).51

Table 18: Protests and petitions

LIM341 2016/17 2017/18

Number of protests and petitions

received

2 1

4.5 Departmental assessment

Total budget and staffing information for the three groups of functions (Development

and town planning services; Technical services; Community services) are provided

in the table below. This is followed by a detailed assessment by function in the

following section.

An analysis of data for each department finds the following:

Development and Planning

o 96,98% decrease in operating budget between 2016/17 and 2017/18

o 0% increase in capital budget between 2016/17 and 2017/18

o A vacancy rate of 120,69%

Technical services




Community services




52

Department Budget Staffing

2016/17 Operati

ng expendi

ture

2017/18 Operating budget

2016/17 Capital budget

2017/18 Capital Budget

Total staff

Total vacancies

Staff with undergraduate degrees or

above

Staff with technical

qualification

Development

and Planning

564253

363

17054147 5250000 5250000 29 35 12 6

Technical

services

660279

226

13046070

7

5250000 5250000 253 157 22 9

Community

services

692391

899

17253905

2

20849074 37944600 362 217 43 54

Table 19: Departments

53

5. Assessment of capacity to perform functions

One of the key objectives of these municipal reports is to provide information on the

capacity of municipalities to exercise each of their core functions. Information in this

section was provided by municipalities and verified by Municipal Managers.

Functions have been grouped into three main areas:

Development and town planning services

Technical services

Community services

Table 20: Grouping of functions

Development and town planning services

Technical services Community services

• Air pollution

• Building regulations

• Local tourism

• Municipal Airports

• Municipal Planning

• Pontoons, ferries, jetties,

piers, harbours

• Trading regulations

• Beaches and Amusement

Facilities

• Billboards and Public

Advertisements

• Control of public

nuisances

• Control of public liquor

trading

• Facilities for care, burial

• Electricity reticulation

• Municipal Public

Transport

• Storm Water

Management Systems

• Potable Water Supply

Systems

• Sanitation

• Cleansing

• Municipal roads

• Refuse removal, refuse

dumps and solid waste

disposal

• Street lighting

• Traffic and parking

• Housing

• Childcare facilities

• Firefighting services

• Municipal health

services

• Cemeteries, funeral

parlours, crematoria

• Local amenities

• Local sport facilities

• Markets

• Municipal parks and

recreation

• Public places

• Agriculture

• Disaster Management

• Libraries

• Traditional Authorities

54

of animals, pounds

• Fencing and fences

• Licensing of dogs

• Licensing of public food

trading

• Municipal abattoirs

• Noise pollution

• Pounds

• Street trading

• Environment and Nature

Conservation

• Vehicle licensing

• Economic Development

• Municipal Public Works • Welfare

• Ambulance services

• Museums other than

national museums

• Municipal police and

security guards

• Other Health

Programmes

(HIV/AIDS, etc.)

According to Section 156(1) of the Constitution and Section 84(1) and (2) of the

Municipal Structures Act, many of these functions are local municipality functions.

However, Section 85(1) of the Municipal Structures Act stipulates that the MEC for

local government in a province may, subject to the provisions of this section, adjust

the division of functions and powers between a district and a local municipality as set

out in Section 84(1) or (2) by allocating, within a prescribed policy framework, any of

those functions or powers vested –

(a) in the local municipality, to the district municipality; or

(b) in the district municipality (excluding a function or power referred to in Section

84(1)(a), (b), (c), (d) (i), (o) or (p)) to the local municipality.

5.1 Development and town planning services

Table 21: Performance of functions (Development and town planning services)

55

Authority for

function

Provided by

PMS in place

By laws in place

Where is service

rendered

Equipment and

infrastructure available for

function

Air pollution Local District No No Urban

Only

No

Building

regulations

Local Local No Yes Urban

Only

Yes

Local tourism Local Local No No Entire

Area

No

Municipal

Airports

Local External

Provider

No No Some

Rural

No

Municipal

Planning

Local Both Yes Yes Entire

Area

No

Pontoons,

ferries, jetties,

piers, harbours

Local District No No Some

Rural

No

Trading

regulations

District Both No Yes Entire

Area

No

Beaches and

Amusement

Facilities

Local Local No No Some

Urban

No

Billboards and

Public

Advertisements


Only

Yes

Control of

public

nuisances

Local Local No Yes Entire

Area

Yes

Control of

public liquor

trading


Area

Yes

Facilities for

care, burial of

Local Local No No Entire

Area

No

56

Authority for

function

Provided by

PMS in place

By laws in place

Where is service

rendered

Equipment and


function

animals,

pounds

Fencing and

fences


Area

No

Licensing of

dogs


Only

No

Licensing of

public food

trading

District District No No Entire

Area

No

Municipal

abattoirs


Area

No

Noise pollution Local Local No No Some

Urban

No

Pounds Local Local No No Entire

Area

No

Street trading Local Local No Yes Entire

Area

Insufficient

Staff

Environment

and Nature

Conservation

Local Both No No Entire

Area

No

Vehicle

licensing

Metro External

Provider

Yes No Urban

Only

Yes

Economic

Development

Local Local Yes Yes Entire

Area

Yes

The table below provides an overview of budgets for the development and town

planning functions. Some observations include:

57

The building regulations function has seen an increase of 0% in operating

expenditure between 2016/17 and 2017/18. Income for this function has

increased between 2016/17 and 2017/18.

Local tourism has had an increase of 1566,67% in operating expenditure

between 2016/17 and 2017/18, and an increase in capital expenditure of 0%

between the two financial years.

Operating expenditure for the municipal planning function has decreased by

98,93% between 2016/17 and 2017/18, while capital expenditure for this

function has increased by 0%.

Economic development had an increase in operating budget of 150%

between 2016/17 and 2017/18.

Table 22: Financial overview (Development and town planning services)

2016/17 2017/18

Operating expenditur

e

Income Capital expenditure

Operating budget

Estimated income

Estimated capital budget

Air pollution

Building

regulations

0 0 0 0 246056 0

Local tourism 15000 15000 250000 250000 150000 250000

Municipal

Airports

0 0 0 0 0 0

Municipal

Planning

536220368 1879000 0 5739439 1013000 0

Pontoons,

ferries, jetties,

piers, harbours

0 0 0 0 0 0

Trading

regulations

0 0 0 0 0 0

Beaches and

Amusement

Facilities

0 0 0 0 0 0

58

2016/17 2017/18


e


Operating budget

Estimated income


Billboards and

Public

Advertisements

0 0 0 150000 0

Control of

public

nuisances

0 0 0 0 0 0

Control of

public liquor

trading

0 0 0 0 0 0

Facilities for

care, burial of

animals,

pounds

1000000 0 0 1000000 0 0

Fencing and

fences

0 0 0 0 0 0

Licensing of

dogs

0 0 0 0 0 0

Licensing of

public food

trading

0 0 0 0 0 0

Municipal

abattoirs

0 0 0 0 0 0

Noise pollution 0 0 0 0 0 0

Pounds 0 0 0 0 0 0

Street trading 0 0 0 0 0 0

Environment

and Nature

Conservation

0 0 0 0 0 0

59

2016/17 2017/18


e


Operating budget

Estimated income


Vehicle

licensing

25017995 6084277 0 5064708 7160 0

Economic

Development

2000000 50000 5000000 5000000 50000 5000000

Staffing for the development and town planning functions are detailed in the table

below.

Table 23: Staffing overview (Development and town planning services)

Staffing Qualifications (no. of staff) Staff vacancie

sTotal staff employed

Full-time Part-time

Bachelors degree and above

Technical qualifications directly related to function

Air

pollution

0

Building

regulatio

ns

3 3 0 2 01 03

Local

tourism

2 1 1 0 1 3

Municipal

Airports

0 0 0 0 0 0

Municipal

Planning

1 1 0 1 1 3

Pontoons

, ferries,

jetties,

piers,

harbours

0 0 0 0 0 0

Trading

regulatio

1 2 0 0 1 3

60



Full-time Part-time



ns

Beaches

and

Amusem

ent

Facilities

0 0 0 0 0 0

Billboard

s and

Public

Advertise

ments

2 2 2 2 0 2

Control

of public

nuisance

s

0 0 0 0 0 0

Control

of public

liquor

trading

1 1 0 0 1 3

Facilities

for care,

burial of

animals,

pounds

0 0 0 0 0 0

Fencing

and

fences

0 0 0 0 0 0

Licensing

of dogs

0 0 0 0 0 0

Licensing

of public

food

0 0 0 0 0 0

61



Full-time Part-time



trading

Municipal

abattoirs

0 0 0 0 0 0

Noise

pollution

0 0 0 0 0 0

Pounds 0 0 0 0 0 6

Street

trading

1 1 0 1 0 3

Environm

ent and

Nature

Conserv

ation

3 3 2 2 0 2

Vehicle

licensing

14 14 0 3 0 3

Economi

c

Develop

ment

1 1 0 1 1 4

Municipalities were also requested to indicate whether there is a backlog for each

function, and if so, the extent thereof. This, together with their own assessment of

service delivery and the levels of community satisfaction (f available), are detailed

below.

Table 24: Backlog and service delivery (Development and town planning services)

62

Backlog Delivery of function

Yes / No Extent of backlog Timeframe to address

Ranked assessment of service delivery from 1 (poor) to 10 (excellent)

Community satisfaction

Air pollution

Building

regulations

No 0 1 year 06 None conducted

Local tourism Yes Human Resources

warm bodies

more than

5 years

3 IDP Rep Forum and public

participation

Municipal

Airports

Yes available

infrastructure not

used

1 None

Municipal

Planning

Yes vacant positions 3 year 7 Community satisfaction

survey done by

COGHSTA on behalf of

the municipality

Pontoons,

ferries, jetties,

piers, harbours

No none 1 function not perfomed

Trading

regulations

No N/A 1 year 5 Public consultation was

conducted during IDP

report back meetings in

the wards

Beaches and

Amusement

Facilities

No Not applicable 0 0

Billboards and

Public

Advertisements

No 6 none conducted

Control of

public

nuisances

No N/A 1 year 1 IDP Rep Forum and

Public Consultations

63





Control of

public liquor

trading

Yes Human resource 1 year 4 Function still with LEDET

Province

Facilities for

care, burial of

animals,

pounds

Yes Provision of

Facilities for care,

burial of animals &

construction of

pounds

5 year 0 None Concluded

Fencing and

fences

No Not Applicable 5 year 0 None Conducted.

Licensing of

dogs

Yes The function is not

being performed

so there is no

register for dogs

more than

5 years

0 0

Licensing of

public food

trading

No N/A 1 year 1 Function is within the

district municipality

Municipal

abattoirs

No N/A more than

5 years

1 Function is within the

district municipality

Noise pollution Yes There is no

specific unit within

the municipality

performing the

function

more than

5 years

0 0

Pounds Yes Construction of

animal Pound

Facility

5 year 3 Stockfarmers, Community

are interested in the

construction of facility.

Street trading Yes Vacant position to 3 year 4 IDP Rep Forum and public

64





be filled consultations

Environment

and Nature

Conservation

Yes Compliance and

Enforcement of

environmental

related activities is

not being done,

there is no

champion to deal

directly with issues

of climate change,

there is no

conservation in

place

more than

5 years

5 0

Vehicle

licensing

No Not Applicable 10 Comments from

suggestion box

Economic

Development

Yes Only one position

filled out of 4

2 year 4 Participation of

communities on the IDP

consultation meetings

5.2 Technical services

Table 25: Performance of function (Technical services)

65

Authority for

function

Provided by

PMS in place

By laws in place

Where is service

rendered

Equipment and


function

Electricity

reticulation

Local External Yes Yes

Municipal

Public

Transport

Local District No No Urban

Only

No

Storm Water

Management

Systems


Area

No

Potable

Water

Supply

Systems

District District Yes

Sanitation District District Yes

Cleansing Local Local No Yes Entire

Area

Yes

Municipal

roads

Local Both No No Entire

Area

Yes

Refuse

removal,

refuse

dumps and

solid waste

disposal


Area

Yes

Street

lighting

Local Local Yes Yes Urban

Only

Yes

Traffic and

parking

Local External

Provider

Yes Yes Urban

Only

No

Housing District Both No No Entire

Area

No

66

Authority for

function

Provided by

PMS in place

By laws in place

Where is service

rendered

Equipment and


function

Municipal

Public Works

District District Yes Yes Entire

Area

No

The table below provides an overview of budgets for the technical services functions.

Some observations include:

The refuse removal function has seen an increase of 188,03% in operating

expenditure between 2016/17 and 2017/18. Capital expenditure has

increased by 0% between the two financial years. Income for this function

has increased by 3,79% between 2016/17 and 2017/18.

Housing have had an increase of 165,99% in operating expenditure between

2016/17 and 2017/18, and an increase in capital expenditure of 0% between

the two financial years.

Table 26: Financial overview (Technical services)

2016/17 2017/18


e

Income Capital expenditur

e

Operating budget

Estimated income


Electricity

reticulation

Municipal

Public

Transport

0 0 0 0 0 0

Storm Water

Management

Systems

Potable

Water

Supply 67

2016/17 2017/18


e

Income Capital expenditur

e

Operating budget

Estimated income


Systems

Sanitation

Cleansing 0 0 0 0 0 0

Municipal

roads

Refuse

removal,

refuse

dumps and

solid waste

disposal

4956919 14277580 0 14277580 14819000 0

Street

lighting

90053220 97173949 0 96427209 125288103 0

Traffic and

parking

0 0

Housing 1015724 0 0 2701771 0 0

Municipal

Public Works

The table below details staffing information for the technical services functions,

including total staff employed, qualifications and vacancies.

Table 27: Staffing overview (Technical services)

68

Staffing Qualifications (no. of staff) Staff vacancies

Total staff employed

Full-time

Part-time Bachelors degree and

above

Technical qualifications directly

related to function

Electricity

reticulation

36 26 0 0 0

69



Full-time

Part-time Bachelors degree and

above

Technical qualifications directly

related to function

Municipal

Public

Transport

1 1 2 1 0 1

Storm Water

Management

Systems

39 39 0 1 0 41

Potable

Water

Supply

Systems

50 0 0

Sanitation 0 0 0 0

Cleansing 0 0 60 2 0 0

Municipal

roads

39 39 0 1 0 41

Refuse

removal,

refuse

dumps and

solid waste

disposal

26 26 60 4 0 9

Street

lighting

23 23 0 0 3 23

Traffic and

parking

0 0 0 0 0 0

Housing 4 4 0 0 0 3

Municipal

Public Works

56 56 0 1 0 4

70



service delivery and the levels of community satisfaction (if available), are detailed

below.

Table 28: Backlog and service delivery (Technical services)





Electricity

reticulation

Municipal

Public

Transport

Yes Public Transport

infrastructure in

Town and Rural

areas

more than

5 years

2 None Conducted

Storm Water

Management

Systems

No Incapacity,

owneship, and,

unknown structures

4 year 2 Seasonal or yearly

inspections and flooding

incidents in rain seasons

Potable

Water

Supply

Systems

Sanitation

Cleansing No 7 0

Municipal

roads

Yes Deteriorating road

infrastructure (due

to ageing, useful

life reached, traffic

demand more than

current pavement

supply, or other.

4 year 4 Routine Road Inspection,

and, Community Compains

Refuse Yes 48345 households 5 year 8 0

71

removal,

refuse

dumps and

solid waste

disposal

in rural areas are

not receiving waste

removal services

Street

lighting

Yes More capacity

needed to supply

electricity,

Households

connections in

villages and newly

developed

townships.

5 year 8 Through our own internal

audit questionnaire and the

feedback from community

during public participations

Traffic and

parking

No Not Applicable 5 Not Applicable

Housing Yes Housing delivery 5 year 5 Not applicable

Municipal

Public Works

Yes Water supply

shortage. waste

water treatment

works ageing. No

adequate public

transport ranking

facility. Access

Roads to Public

facilities

5 year 4 Public participation

platforms

5.3 Community services

Table 29: Performance of function (Community services)

72

Authority for

function

Provided by

PMS in place

By laws in place

Where is service

rendered

Equipment and


function

Childcare

facilities


Area

No

Firefighting

services


Area

No

Municipal

health

services

Cemeteries,

funeral

parlours,

crematoria


Only

Yes

Local

amenities


Area

Yes

Local sport

facilities


Area

Yes

Markets Local Local No No Entire

Area

No

Municipal

parks and

recreation


Area

Yes

Public places Local Local No No Entire

Area

Yes

Agriculture District Both No No Entire

Area

No

Disaster

Management


Area

No

Libraries Local Both No No Urban

Only

Yes

Traditional District District No No Entire Yes73

Authority for

function

Provided by

PMS in place

By laws in place

Where is service

rendered

Equipment and


function

Authorities Area

Welfare District District No No Entire

Area

No

Ambulance

services


Area

No

Museums

other than

national

museums


Area

No

Municipal

police and

security

guards

Local Both Yes Yes Entire

Area

Yes

Other Health

Programmes

(HIV/AIDS,

etc.)

The table below provides an overview of budgets for the community services

functions. Some observations include:

Operating expenditure for the municipal parks function has increased by

26,09% between 2016/17 and 2017/18, while capital expenditure for this

function has increased.

Table 30: Financial overview (Community services)

74

2016/17 2017/18

Operating expenditure


Operating budget

Estimated income


Childcare

facilities

0 0 0 0 0 0

Firefighting

services

0 0 0 0 0 0

Municipal

health

services

Cemeteries,

funeral

parlours,

crematoria

180307 156023 0 412010 156990 0

Local

amenities

0 1141368 7549537 0 0 11700000

Local sport

facilities

0 1141368 7549537 0 0 11700000

Markets 0 0 0 0 0 0

Municipal

parks and

recreation

19264558 0 24291168 0 9294600

Public

places

3492262 236166 500000 12058380 0 0

Agriculture 0 0 0 0 0 0

Disaster

Management

0 0 0 0 0 0

Libraries 0 0 0 0 0 0

Traditional

Authorities

0 0 0 0 0 0

Welfare 0 0 0 0 0 0

75

2016/17 2017/18

Operating expenditure


Operating budget

Estimated income


Ambulance

services

0 0 0 0 0 0

Museums

other than

national

museums

0 0 0 0 0 0

Municipal

police and

security

guards

9175546 236166 0 5316787 166425 0

Other Health

Programmes

(HIV/AIDS,

etc.)

The table below details staffing information for the community services functions,

including total staff employed, qualifications and vacancies.

Table 31: Staffing overview (Community services)



Full-time

Part-time

Bachelors degree and

above

Technical qualifications directly related to

function

Childcare

facilities

0 0 0 0 0 0

Firefighting

services

0 0 0 0 0 0

Municipal

health

0 0 0

76



Full-time

Part-time


above


function

services

Cemeteries,

funeral

parlours,

crematoria

2 2 0 4 0 0

Local

amenities

0 39 20 2 0 0

Local sport

facilities

0 56 30 4 0 0

Markets 1 1 1 0 1 4

Municipal

parks and

recreation

56 56 30 4 0 17

Public

places

3 56 0 4 0 0

Agriculture 0 0 0 0 0 0

Disaster

Management

2 1 2 0 0 1

Libraries 0 2 2 0 2 5

Traditional

Authorities

0 0 0 0 0 0

Welfare 0 0 0 0 0 0

Ambulance

services

0 0 0 0 0 0

Museums

other than

national

museums

0 0 0 0 0 0

77



Full-time

Part-time


above


function

Municipal

police and

security

guards

45 45 0 3 42 33

Other Health

Programmes

(HIV/AIDS,

etc.)

0



service delivery and the levels of community satisfaction (f available), are detailed

below.

Table 32: Backlog and service delivery (Community services)





Childcare

facilities

No None more than

5 years

1 0

Firefighting

services

Yes Applicable at

District level

more than

5 years

1 0

78





Municipal

health

services

Cemeteries,

funeral

parlours,

crematoria

No 8 0

Local

amenities

No 7 0

Local sport

facilities

No 7 0

Markets Yes Human Resources more than

5 years

5 IDP Rep Forum and Public

Consultation

Municipal

parks and

recreation

No 7 0

Public

places

No 7 0

Agriculture No N/A more than

5 years

1 Function is within the

Department of Agriculture

Disaster

Management

Yes Lack of resources 5 year 1 0

Libraries Yes librarians reporting

directly to

municipality

2 year 5 comments

Traditional

Authorities

No Not Applicable 5 Not applicable

Welfare No 0 more than 1 Not applicable79





5 years

Ambulance

services

Yes Not applicable more than

5 years

1 Not available

Museums

other than

national

museums

No Not applicable more than

5 years

1 0

Municipal

police and

security

guards

Yes budget 5 year 7 No

Other Health

Programmes

(HIV/AIDS,

etc.)

80

6. Conclusion and recommendations

This report serves to provide an overview of both the environmental situation, and

documented capacity, of the municipality under review. This has been extracted

from information provided by the municipality in the form of responses to

questionnaires, as well as additionally sourced information from National Treasury,

Stats SA, CoGTA etc., where municipalities did not provide sufficient information.

More detailed capacity conclusions, by municipality and function, are contained in

the provincial reports.

Listed below are generic recommendations emerging from the study.

6.1.1 Updating of information on Powers and Functions

Creation of database of all Gazetted MEC determinations in terms of Division

of Powers and Functions

Creation of database of all assignments and documentation

Review of all SLAs particularly with ESKOM

Annual update on what functions are being performed where

o Linked to this, focus on improving the understanding of powers and

functions across municipalities. It is clear from the municipal

submissions, and lack of budget and staffing data, that there is often a

limited understanding of powers and functions. This therefore impacts

the MDB’s ability to have an accurate and comprehensive assessment

of capacity.

6.1.2 Identification of capacity requirements to exercise particular powers and

functions

81

The study has indicated that many municipalities are unaware of how different

powers and functions are exercised in each municipalities. Given that there

are clear variations across provinces both in terms of the location of Powers

and Functions (District/Local/Both) and how each function is exercised,

working in consultation with municipalities, Provincial COGTAs could define

more clearly what it means to exercise each Power and Function so as to be

better prepared to engage with provincial and national treasuries around the

formulae used for the equitable share and other grants/transfers.

6.1.3 MECs could identify areas in which they need to rationalise the division of

powers and functions

This study has provided a baseline of what functions are being exercised

where at a category B and C level across South Africa.

As indicated above, given that the information is largely based on what

municipalities have provided, provinces need to engage in a process to

confirm these divisions of powers and functions, editing where needed and

could initiate further legislative provisions where needed, including making

formal requests to the MDB if necessary.

82

Appendix 1: Definitions

Function Definition Comment

Air pollution “Air pollution” means any change in the composition of the air by smoke,

soot, dust (including fly ash), cinders, solid particles kind, gases, fumes,

aerosols and odorous.

According to Section 156(1) of the Constitution and Section 84(1) and (2)

of the Municipal Structures Act, the air pollution function is a local

municipality function. However, as indicated the air pollution function

may, subject to the provisions stated above, be adjusted by the MEC for

local government.

beaches and

amusement

facilities

“Beaches” means the area for recreational opportunities and facilities along

the sea shore available for public use and any other aspect in this regard

which falls outside the competence of the national and provincial

government.

“Amusement facilities” means a public place for entertainment.

In relation to the local municipality:

The establishment, operation, management, control and regulation of

amusement facilities and beach facilities.


of the Municipal Structures Act, the beaches and amusement facilities

function is a local municipality function. However, as indicated the

beaches and amusement facilities function may, subject to the provisions

stated above, be adjusted by the MEC for local government.

Billboards and

the display of

advertisements

in public places

“Billboards and the display of advertisements in public places” means:

The display, regulation and control of written or visual descriptive material,

any sign or symbol or light that is not intended solely for illumination or as a

warning against danger which promotes the sale and / or encourages the

use of goods and services found in:


of the Municipal Structures Act, the billboards and public advertisements


billboards and public advertisements function may, subject to the

provisions stated above, be adjusted by the MEC for local government.

83


• Streets

• Roads

• Thoroughfares

• Sanitary passages

• Squares or open spaces and or

• Private property.

The above definition excludes any aspect that may be covered by

provincial or national legislation.

Building

regulations

“Building regulations” means the regulation, through by-laws, and legislated

building regulations, of any temporary or permanent structure attached to,

or to be attached to, the soil within the area of jurisdiction of a municipality,

which must at least provide for:

• Approval of building plans,

• Building inspections,

• Issue of completion certificates, and

Control of operations and enforcement of contraventions of building

regulations if not already provided for in national and provincial legislation.


of the Municipal Structures Act, the building regulations function is a local

municipality function. However, as indicated the building regulations

function may, subject to the provisions stated above, be adjusted by the

MEC for local government.

Cemeteries,

funeral parlours

and crematoria

“Cemeteries, funeral parlours and crematoria” means:

The establishment, conduct and control of facilities for the purpose of

disposing of human and animal remains.


of the Municipal Structures Act, the cemeteries, funeral parlours and

crematoria function is a shared municipal function, with district and

functions as stipulated above. However, as indicated the cemeteries,

84


In addition, in relation to the district municipality, it means the

establishment, conduct and control of cemeteries and crematoria serving

the area of a major proportion of municipalities in the district.

And in relation to the local municipality, it means the establishment,

conduct and control of cemeteries and crematoria serving the area of the

local municipality only.

funeral parlours and crematoria function may, subject to the provisions


Child care

facilities

“Child care facilities” means ensuring a safe and healthy environment within

facilities pertaining to child care. The function is in respect of regulation of

the facilities.

Section 297 of the Children’s Bill 70 of 2003 makes provision for

inspection by municipal officials of child and youth care centres, partial

care facilities, shelters and drop-in centres to determine compliance to

any structural, safety, health and other requirements of the municipality.

The bill defines child and youth care centres, partial care facilities,

shelters and drop-in centres.


of the Municipal Structures Act, the child care facilities function is a local

municipality function. However, as indicated the child care facilities



Cleansing “Cleansing” means the cleaning of public streets, roads and other public

spaces, either manually or mechanically.


of the Municipal Structures Act, the cleansing function is a local

municipality function. However, as indicated the cleansing function may,

subject to the provisions stated above, be adjusted by the MEC for local

government.

Control of public

nuisance

“Control of public nuisance” means the regulation, control and monitoring of

any activity, condition or thing interferes with the rights of the community by


of the Municipal Structures Act, the control of public nuisance function is

85


causing damage, annoyance or inconvenience to a person or a community. a local municipality function. However, as indicated the control of public

nuisance function may, subject to the provisions stated above, be

adjusted by the MEC for local government.

Control of

undertakings

that sell liquor to

the public

“Control of undertakings that sell liquor to the public” means the control of

undertakings that sell liquor to the public that is permitted to do so in terms

of provincial legislation, regulation and licenses, and includes an inspection

service to monitor liquor outlets for compliance to license requirements in

as far as such control and regulation are not covered by provincial

legislation.


of the Municipal Structures Act, the "Control of undertakings that sell

liquor to the public" function is a local municipality function. However, as

indicated the "Control of undertakings that sell liquor to the public"



Domestic waste-

water and

sewage disposal

systems

“Domestic waste-water and sewage disposal systems” means:

The establishment or procurement, where appropriate, provision, operation,

management, maintenance and regulation of a system, including

infrastructure, for the collection, removal, disposal and/or purification of

human excreta and domestic waste-water to ensure minimum standard of

services necessary for safe and hygienic households.

According to Section 156(1) of the Constitution and Section 84(1)

Municipal Structures Act, the water and sanitation services function is a

district municipality function. However, as indicated the water and

sanitation services function may, subject to the provisions stated above,

be adjusted by the MEC for local government.

The functions and powers referred to in subsection (1) include (b) potable

water supply systems and (d) domestic waste-water and sewage disposal

systems.

Electricity

reticulation

“Electricity reticulation” means bulk supply of electricity, which includes for

the purposes of such supply, the transmission, distribution and, where

applicable, the generation of electricity, and also the regulation, control and

maintenance of the electricity reticulation network, tariff policies, monitoring

of the operation of the facilities for adherence to standards and registration


Municipal Structures Act, the electricity reticulation function is a district

municipality function. However, as indicated the electricity reticulation



86


requirements, and any other matter pertaining to the provision of electricity

in the municipal areas.

According to Section 156(1) of the Constitution and Section 84(1) Municipal

Structures Act, the electricity reticulation function is a district municipality

function.

However, Section 84(3)(a) of the Municipal Structures Act stipulates that

the Minister may, by notice in the Government Gazette and, after

consultation with the Cabinet member responsible for the functional area in

question, the MEC for local government in the province and, if applicable,

subject to national legislation, authorize a local municipality to perform a

function or exercise a power mentioned in subsection (1)(b), (c), (d) or (i) in

its area or any aspect of such function or power.

The functions and powers referred to in subsection (1) include (c) the

provision of electricity.

Facilities for the

accommodation,

care and burial

of animals

“Facilities for the accommodation, care and burial of animals” means the

provision of and/or the regulation, control and monitoring of facilities which

provide accommodation and care for well or sick animals and the burial or

cremation of animals, including monitoring of adherence to any standards

and registration requirements outlined in legislation.


of the Municipal Structures Act, the facilities for the accommodation care

and burial of animals function is a local municipality function. However,

as indicated the facilities for the accommodation care and burial of

animals function may, subject to the provisions stated above, be adjusted

by the MEC for local government.

Fencing and

fences

“Fencing and fences” means ensuring the provision and maintenance

and/or regulation of any boundary or deterrents to animals and pedestrians

along streets or roads.


of the Municipal Structures Act, the fencing and fences function is a local

municipality function. However, as indicated the fencing and fences


87



Fire fighting In relation to the district municipality, “fire fighting” means fire brigade

services serving the area of the district municipality as a whole intended to

be employed for preventing the outbreak or spread of a fire, and includes-

(i) planning, co-ordination and regulation of fire services;

(ii) specialised fire fighting services such as mountain, veld and chemical

fire services;

(iii) co-ordination of the standardisation of infrastructure, vehicles,

equipment and procedures;

(iv) training of fire officers.

In relation to the local municipality, “fire fighting” means any function not

included in the definition applicable to a district municipality, including

fighting and extinguishing of all fires; the rescue and protection of any

person, animal or property in emergency situations not covered by other

legislation or powers and functions.


of the Municipal Structures Act, the fire fighting function is a shared

municipal function, with district and functions as stipulated above.

However, as indicated the fire fighting function may, subject to the


Licensing and

control of

undertakings

that sell food to

the public

“Licensing and control of undertakings that sell food to the public” means:

Ensuring the quality and the maintenance of food safety and hygiene

related environmental health standards through regulation, a issuance of a

certificate of acceptability and monitoring of any place that renders in the

course of any commercial transaction the supply/handling of food intended

for human consumption. Implement policy and regulations 'as provided for

and prescribed in terms of the Foodstuffs, Cosmetics and Disinfectants Act,


of the Municipal Structures Act, the licensing and control of undertakings

that sell food to the public function is a local municipality function.

However, as indicated the licensing and control of undertakings that sell

food to the public function may, subject to the provisions stated above, be

adjusted by the MEC for local government.

88


1972 (Act 54 of 1972) and the National Health Act, (Act 61 of 2003),

including the relevant regulations published under the mentioned Acts.

Licensing of

dogs

“Licensing of dogs” means the control over the number and health status of

dogs through a licensing mechanism.


of the Municipal Structures Act, the licensing of dogs function is a local

municipality function. However, as indicated the licensing of dogs



Local amenities “Local amenities” means:

The provision, management, preservation and maintenance of any

municipal place, land, and building reserved for the protection of places or

objects of scenic, natural, historical and cultural value or interest and the

provision and control of any such or other facility for public use but

excludes such places, land or buildings falling within competencies of

national and provincial governments.


of the Municipal Structures Act, the local amenities function is a local

municipality function. However, as indicated the local amenities function


local government.

Local tourism In relation to the district municipality, “local tourism” means the promotion of

local tourism for the area of the district municipality.

In relation to the local municipality, “local tourism” means the promotion,

marketing and, if applicable, the development, of any tourist attraction

within the area of the municipality with a view to attract tourists; to ensure

access, and municipal services to such attractions, and to regulate,

structure and control the tourism industry in the municipal area subject to

any provincial and national legislation, and without affecting the

competencies of national/provincial government pertaining to “nature


of the Municipal Structures Act, the local tourism function is a shared


However, as indicated the local tourism function may, subject to the


89


conservation”, “museums”, “libraries” and “provincial cultural matters”.

Markets “Fresh Produce Markets” means:

The establishment, operation, management, conduct, regulation and

control of markets restricted to the selling of fresh products, vegetables,

fruit, flowers, fish and meat.

“Markets” means:

The establishment, operation, management, conduct, regulation and/or

control of markets other than fresh produce markets including market

permits, location, times, conduct etc.

In relation to a District Municipality it also means:

The establishment, conduct and control of fresh produce markets

serving the area of a major proportion of the municipalities in the

district

In relation to a Local Municipality it also means:

The establishment, conduct and control of fresh produce markets serving

the local municipality area only


of the Municipal Structures Act, the markets function is a shared


However, as indicated the markets function may, subject to the provisions


Municipal

abattoirs

“Municipal abattoirs” means

The establishment, conduct and/or control of facilities for the slaughtering

of livestock and poultry

In relation to a District Municipality it also means:

The establishment, conduct and control of abattoirs serving the


of the Municipal Structures Act, the municipal abattoirs function is a

shared municipal function, with district and functions as stipulated above.

However, as indicated the municipal abattoirs function may, subject to the


90


area of a major proportion of the municipalities in the district

In relation to a Local Municipality it also means:

The establishment, conduct and control of abattoirs serving the local

municipality area only.

Municipal

Airport

“Municipal Airport” means a demarcated area on land or water or a building

which is used or intended to be used, either wholly or in part, for the arrival

or departure of aircraft which includes the establishment and maintenance

of such facility including all infrastructure and services associated with an

airport, and the regulation and control of the facility, but excludes airports

falling within the competence of national and provincial governments.

Additionally, in relation to the district it is a “municipal airport” serving the

area of the district municipality as a whole.

In relation to the local municipality it is a “municipal airport” serving the area

of the local municipality only.


of the Municipal Structures Act, the municipal airports function is a shared


However, as indicated the municipal airports function may, subject to the


Municipal health

services

The National Health Act 61 of 2003 defines ‘municipal health services’ as:

a) water quality monitoring;

b) food control;

c) waste management;

d) control of premises;

e) communicable disease control;

f) vector control;


Municipal Structures Act, the municipal health services function is a

district municipality function. However, as indicated the municipal health

services function may, subject to the provisions stated above, be adjusted

by the MEC for local government.

91


g) environmental pollution control;

h) disposal of the dead; and

i) chemical safety,

but excludes port health, malaria control and control of hazardous

substances.

Municipal parks

and recreation

“Municipal parks and recreation” means

The provision, management, control and maintenance of any land, gardens

or facility set aside for recreation, sightseeing and/or tourism and includes

playgrounds but excludes sport facilities.


of the Municipal Structures Act, the municipal parks and recreation


municipal parks and recreation function may, subject to the provisions


Municipal

planning

“Municipal planning” means the compilation and implementation of an

integrated development plan in terms of Chapter 5 of the Municipal

Systems Act 32 of 2000 and the regulations to this act, particularly the

regulations published under government notice R796 in 2001: Local

Government: Municipal Planning and Performance Management

Regulations. Municipal Planning includes the preparation of spatial

development frameworks, as a sectoral plan forming part of integrated

development plan.

Additionally, in relation to the district municipality “municipal planning”

means:

• Integrated development planning for the district as a whole,

including a framework for integrated development plans of all


of the Municipal Structures Act, the municipal planning function is a

shared municipal function, with district and functions as stipulated above.

However, as indicated the municipal planning function may, subject to the


92


municipalities in the area of the district municipality.

Additionally, in relation to the local municipality “municipal planning” means:

• Integrated development planning for the local municipality in

accordance with the framework for integrated development plans

prepared by the district municipality

Development and implementation of a town planning scheme or land use

management scheme for the municipality including administration of land

use development applications in the form of special consents, rezonings

and departures.

Municipal public

transport

“Municipal public transport” means:

In relation to the local municipality the regulation and control, and where

applicable, the provision of:

• Services for the carriage of passengers, whether scheduled or

unscheduled, operated on demand along a specific route or routes

or, where applicable, within a particular area

• Scheduled services for the carriage of passengers, owned and

operated by the municipality, on specific routes

In relation to the district:

The regulation of passenger transport services.


of the Municipal Structures Act, the Municipal Public Transport function is

a shared municipal function, with district and functions as stipulated

above. However, as indicated the municipal public transport function


local government.

Municipal roads “Municipal roads” means:

The construction, maintenance, and control of a road which the public has

the right to and includes, in addition to the roadway the land of which the


of the Municipal Structures Act, the municipal roads function is a shared


93


road consists or over which the road extends and anything on that land

forming part of, connected with, or belonging to the road.

In relation to a district municipality it also means:

Municipal roads which form an integral part of a road transport

system for the area of the district municipality as a whole.

In relation to a local municipality it also means:

A street in a built-up area.

However, as indicated the municipal road function may, subject to the


Noise pollution “Noise pollution” means the control and monitoring of any noise that

adversely affects human health or well-being or the ecosystems useful to

mankind, now or in the future.


of the Municipal Structures Act, the noise pollution function is a local

municipality function. However, as indicated the noise pollution function


local government.

Pontoons,

ferries, jetties,

piers and

harbours

“Pontoons, ferries, jetties, piers and harbours” means the regulation of

pontoons, ferries, jetties, piers and harbours, excluding the regulation of

international and national shipping and matters related thereto, and matters

falling within the competence of national and provincial governments.


of the Municipal Structures Act, the pontoons, ferries, jetties, piers and

harbours function is a local municipality function. However, as indicated

the pontoons, ferries, jetties, piers and harbours function may, subject to

the provisions stated above, be adjusted by the MEC for local

government.

Potable water

supply systems

“Potable water supply systems” means:

The establishment or procurement, where appropriate, operation,


Municipal Structures Act, the water and sanitation services function is a

district municipality function. However, as indicated the water and

94


management and regulation of a potable water supply system, including the

services and infrastructure required for the regulation of water

conservation, purification, reticulation and distribution; bulk supply to local

supply points, metering, tariffs setting and debt collection; and provision of

appropriate education so as to ensure reliable supply of a sufficient quantity

and quality of water and effective water use amongst end-users, including

informal households, to support life and personal hygiene.

sanitation services function may, subject to the provisions stated above,

be adjusted by the MEC for local government.

The functions and powers referred to in subsection (1) include (b) potable

water supply systems and (d) domestic waste-water and sewage disposal

systems.

Pounds “Pounds” means the provision, management, maintenance and control of

any area or facility set aside by the municipality for the securing of any

animal or object confiscated by the municipality in terms of its by laws.


of the Municipal Structures Act, the pounds function is a local municipality

function. However, as indicated the pounds function may, subject to the


Public places “Public places” means the management, maintenance and control of any

land or facility owned by the municipality for public use.


of the Municipal Structures Act, the public places function is a local

municipality function. However, as indicated the public places function


local government.

Refuse removal,

refuse dumps

and solid waste

disposal

“Refuse removal, refuse dumps and solid waste disposal” means the

removal of any household or other waste and the disposal of such waste in

an area, space or facility established for such purpose, and includes the

provision, maintenance and control of any infrastructure or facility to ensure

a clean and healthy environment for the inhabitants of a municipality


of the Municipal Structures Act, the refuse removal, refuse dumps and

solid waste disposal function is a shared municipal function, with district

and functions as stipulated above. However, as indicated the refuse

removal, refuse dumps and solid waste disposal function may, subject to

the provisions stated above, be adjusted by the MEC for local

95


In relation to the District Municipality it means:

Solid waste disposal sites, in so far as it relates to-

i. the determination of a waste disposal strategy for the district as a

whole;

ii. the regulation of waste disposal strategy for the district as a whole;

iii. the establishment, operation and control of waste disposal sites,

bulk waste transfer facilities and waste disposal facilities for more

than one local municipality in the district.

In relation to the Local Municipality it means:

i. The determination of a waste disposal strategy for the local

municipality only

ii. The regulation of local waste disposal for the local municipality

only

iii. The collection and removal of waste and transporting to a local

waste disposal site, bulk transfer facility and district waste disposal

site

The establishment, operation and control of waste disposal sites, bulk

waste transfer facilities and waste disposal facilities for the local

municipality only

government.

Storm water

management

systems

“Storm water management systems in built-up areas” means the

management of systems to deal with storm water in built-up areas.


of the Municipal Structures Act, the storm water management systems

function is a local municipality function. However, as indicated the storm

96


water management systems function may, subject to the provisions


Street lighting “Street lighting” means the provision and maintenance of lighting for the

illuminating of streets.


of the Municipal Structures Act, the street lighting function is a local

municipality function. However, as indicated the street lighting function


local government.

Street trading “Street trading” means the control, regulation and monitoring of the selling

of goods and services along a public pavement, road reserve and other

public places but excluding fresh produces markets as defined above.


of the Municipal Structures Act, the street trading function is a local

municipality function. However, as indicated the street trading function


local government.

Trading

regulations

“Trading regulations” means the regulation of any area facility and/or

activity related to the trading of goods and services within the municipal

area not already being regulated by national and provincial legislation.


of the Municipal Structures Act, the trading regulations function is a local

municipality function. However, as indicated the trading regulations



Traffic and

parking

“Traffic and parking” means the management and regulation of traffic and

parking within the area of the municipality including but not limited to, the


of the Municipal Structures Act, the traffic and parking function is a local

97


control over operating speed of vehicles on municipal roads but excluding

any provincial competences as specified in legislation.

municipality function. However, as indicated the traffic and parking



98

Appendix 2: Amalgamation Process

Provincial context

The municipal boundary redetermination process is not static. In the most recent

period of boundary redetermination, from 2011 culminating in the 2016 local

government elections, the overall number of municipalities was reduced from 278 to

257 municipalities, but with significant changes made to many boundaries. In broad

terms, the boundary changes in this period can be classified as:

No changes: Municipalities where there were no changes to municipal

boundaries;

Slight changes: where the boundary change was not considered

significant; and

New or merged: where either a new municipality was created or two or

more municipalities or major parts of a municipality were merged.

The 257 municipalities consist of eight Category A, 205 Category B and 44 Category

C municipalities. Some 22 of these new municipalities which came into effect after

the August 2016 elections, were newly merged municipalities, and another 74

municipalities had slight changes to the boundaries of the municipalities.

The significant reduction in the number of municipalities between 2011 and 2016

resulted from two processes:

Just under half of these mergers resulted from processes prior to 2013

where often MECs requested the MDB to consider creating more viable

municipalities and then

In 2015 the remainder arose from the Minister of COGTA conducted an

assessment across the whole country on the functionality and viability of

municipalities. After receiving suggestions for redemarcation from MECs

he invoked Section 22(2) of the Demarcation Act for a redetermination of

certain municipalities in the country.99

In terms of the 2011 municipal boundaries, only 112 out of the 226 Category B

municipalities (the 2011 municipal boundaries) did not have their boundaries

changed. This meant that of the 114 municipalities that did change, some 72 had

relatively small changes made and the remaining 42 municipalities were reduced to

only 21 municipalities, through mergers or the disestablishment of an existing

municipality and its area partitioned off to other existing municipalities.

There was an overall reduction of 21 Category B municipalities. Some had a slight

change in boundary while others had a major change such as the amalgamation of

two or even three municipalities. The change in boundaries differed significantly

across provinces, with Gauteng and the Western Cape having no really significant

changes in municipal boundaries, compared to the North West, Limpopo, KwaZulu-

Natal and Eastern Cape provinces which had more significant changes.

Table 33: Changes to Category B Municipalities

Category by

Province

New Merged % Slight % None % Grand Total

EC 4 12,9 11 35,5 16 51,6 31

FS 0,0 5 27,8 13 72,2 18

GT 1 16,7 0,0 5 83,3 6

KZN 6 14,0 20 46,5 17 39,5 43

LIM 7 31,8 7 31,8 8 36,4 22

MP 1 5,9 3 17,6 13 76,5 17

NC 1 3,8 6 23,1 19 73,1 26

NW 1 5,6 13 72,2 4 22,2 18

WC 0,0 7 29,2 17 70,8 24

Grand Total 21 10,2 72 35,1 112 54,6 205

The following map indicates, in general, where the changes in municipal boundaries

were in Limpopo.

Figure 36: Limpopo changes in municipal boundaries

100

Thulamela resulted from the disestablishment of one municipality and its division into

two or more municipalities. Here, the original municipality remained but was

expanded in area and population being served, and in the case of Collins Chabane a

number of areas from existing municipalities were demarcated into a new

municipality:

Municipal Context

At the outset it should be indicated that in all of the redemarcations the MDB

considers a complex set of factors and so there is not one or a few reasons for each

amalgamation. In many of the cases, it is clear that there were serious problems in

at least one of the affected municipalities in terms of overall governance, service

delivery and/or lack of an economic base. Very rarely were issues such as political

representation suggested as reasons for mergers even though in almost all mergers,

where a large municipality merged with a small one, the latter ended up having fewer

councillors than before.

It must be emphasised, though, that the MDB by law goes through a process of

investigation and must also consider each of the Section 24 Objectives and Section

101

25 Criteria for demarcation before finalising their recommendation. It should also be

recognised that the MDB has also rejected some of the proposed mergers.

Clearly, merging municipalities or incorporating major parts of one municipality into

another leads to potentially quite significant changes to the population and area to be

administered by the new municipality. Thirdly, a number of the municipalities are

also losing population, possibly due to migration and/or increasing urbanisation.

This has meant that many smaller municipalities, and particularly those without a

rates base, have become even more financially unviable. Finally, in some cases,

more urbanised municipalities have been merged.

The following table indicates the change in population and area in the merger which

led to the formation of this municipality:

Table 34: Summary of merger and incorporation

# CURRENT PREVIOUS

Cat

Current

Municipality Name

2016 Code

Pop’n.21

Area (2016)

Municipality Name

Earlier Code

Land Area

Pop’n. Growth 2001-2011

# CURRENT PREVIOUS

2

0

B Musina LIM3

41

10466

2

10346 Musina LIM341 7577 68359 73,90

B Thulamela LIM3

43

45984

9

2641 Mutale LIM342 3886 91870 10,83

B Makhado LIM3

44

40151

5

7604 Thulamela LIM343 5835 618462 6,36

B Collins

Chabane

LIM3

45

32844

7

5002 Makhado LIM344 8300 516031 4,40

What does appear to be quite common is that mergers have occurred between, on

the one hand, quite small and sparsely populated municipalities, but which on the

21 Population based on 2011 Census102

other hand are contiguous to a larger, usually better resourced municipality. This

situation gets exacerbated with increasing urbanisation and de-population of some

rural areas. It should be noted, though, that there are no doubt other contextual

issues which have influenced such redemarcations, and in sub-sections below one

finds poor governance and service delivery being found in at least one of each of the

merged municipalities. This undoubtedly influences the MDB in its decision-making

process.

Municipality Settlement Reality

A second set of observations can be drawn through analysing the broad settlement

patterns contained in each of the municipalities involved in mergers. The following

table provides such information and it provides for this redemarcation:

The degree of urbanisation: measured either in percentage terms (as built-

up area) or the area of high density (including average density in such

areas greater than 500 persons per square kilometre);

The size of each municipal population as well as its population growth

between censuses.

Whilst each of the mergers had its own specific contexts to be dealt with by the

MDB, some of the general points to be drawn from this are as follows:

The degree of urbanisation varied significantly between and within

municipalities being merged. For example, in the case of Maletswai and

Gariep, both were highly urbanised, whilst in the case of Fetakgomo and

Greater Tubatse both former municipalities were not urbanised at all.

However these differ with the cases of the highly urbanised eThekwini and

the less urbanised Umdoni taking over separate parts of the former very

rural Vulamehlo.

The degree of urbanisation masks the fact that even in non-urbanised

areas, people live in relatively high densities. For example, the area (in

square kilometres) containing over 500 persons per square kilometre

103

varies markedly from The Big Five False Bay (0,11 sq. kms) and KwaSani

(1,42 sq. kms) having small areas of high densities compared with

eThekwini having over 1160 square kilometres at such higher densities.

The densities within such areas of high density also vary markedly across

all municipalities. Often such settlements are informal settlements in

which the demands for urban services end up being greater than in more

settled areas.

These data again reinforce the fact that there was significant differentiation across

municipalities being merged. In many of the demarcations, surrounding

municipalities which are functionally linked to a larger more urbanised municipality

have been incorporated or merged into the larger municipality. As is indicated

below, these larger municipalities often have a greater economic base than the

smaller municipality.

Table 35: Population density

Mun Code DEM#

% Urbanization

Area >500 pp/km2

Ave density >500pp/km2

Density

Musina LIM341

20 59% 20,24 2373 9,02

Mutale LIM342

20 3% 97,23 823 23,64

Thulamela LIM343

20 16% 613,38 949 105,99

Makhado LIM344

20 6% 453,82 1085 62,17

Average B’s 52% 61,20

New Governance Arrangements

The mergers and/or incorporations finalised by the MDB have had an impact on

governance, particularly on the number of municipal council seats and the ratio of

registered voters to councillors. In order to analyse this, comparisons were made

between the 2011 and 2016 elections in terms of voters per councillor in the

municipalities which then merged.104

Some of the trends are:

Generally speaking, the number of registered voters per councillor

increased over the five year period for all municipalities.

In the case of Category A mergers/incorporations, the differential between

the old voter/councillor ratio was greatest. For example, in Mangaung,

before Naledi merged with Mangaung, there were 1677 voters per

councillor but after the merger, the voter to councillor ratio changed to

4252, an increase of 250%. Similarly, in the case of eThekwini one finds

Vulamehlo having just over 2000 voters per councillor but with part of it

being incorporated into eThekwini this ratio shifted fourfold to over 8000

voters per councillor. Yet, the other section of Vulamehlo which was

incorporated into Umdoni found its voter to councillor ratio going down

slightly, from 2043 to 1943 voters to councillor.

In some cases, there was significant variation amongst merging

municipalities which meant that some municipalities that merged had a

significant increase in the number of voters per councillor. For example,

KwaSani had only 957 voters per councillor compared with Ingwe’s 2197

voters per councillor pre-merger. Once they merged, the voters per

councillor doubled in the case of KwaSani to almost 2000 voters per

councillor. Similar cases are found in the mergers of Mier/Khara Heis and

Baviaans/Camdeboo/Ikwezi.

On the whole, though, most of the mergers were of Category B

municipalities with roughly similar proportions of voters to councillors.

Finally, it should be noted, though, that changing ratios of voters to councillors does

not mean automatically that participatory democracy suffers, but rather that elected

councillors have larger areas to serve. Those elected do get increased remuneration

and particularly in category A municipalities are better resourced with access to

higher ratios of staff to population being served. On the other hand, such a situation

probably leads to greater contestation amongst potential councillors.

Table 36: Voters and councillors

105

Municipality

2011 CODE

# Reg Voters 2011

Voters per cllr 2011

2016 CODE

Registered

2016

Councillors

DEM

Voters per cllr 2016

Musina LIM341

20 21730 1811 LIM341

43282 24 20 1803

Mutale LIM342

20 47466 1826 LIM343

227096 81 20 2804

Thulamela LIM343

20 281015

3513 LIM344

182361 75 20 2431

Makhado LIM344

20 236142

3107 LIM345

158218 71 20 2228

Changed Economic Bases

Possibly the greatest differentiator between and within the merged municipalities

revolves around the economic bases of these municipalities. Whilst this is a reality

of apartheid spatial disparities, the point becomes very clear when examining the

economic bases of merged municipalities.

An analysis was undertaken of the economic bases of municipalities which merged

or were incorporated between 2011 and 2016. Firstly, levels of unemployment in

some of the mergers are far higher than the national average. This was true in the

cases of municipalities with high unemployment levels such as Fetakgomo (59%)

and Greater Tubatse (50%). In other mergers there were also significant disparities

in unemployment levels between municipalities being merged. For example, Indaka

has an unemployment level of 57% compared with Emnambithi/Ladysmith of 34%,

and Ntambanana with levels of unemployment of 49% compared with Mhlathuze at

31%.

Secondly, in areas with high levels of unemployment one also expects there to be

higher than average levels of people finding sustenance from the informal sector.

Limpopo and Eastern Cape municipalities have particularly high levels of

involvement in the informal sector. For example, Thulamela, Mutale, Aganang,

Blouberg, Molemole and Makhado have very high levels of employment in the

informal sector.

106

Thirdly, there is great variation within and across merged municipalities in terms of

the proportion of their households that are of higher household income levels. It is

here where municipalities which have been merged have probably the greatest

differentiation. In the merger of Tsolwana/Inkwanca/Lukhanji, for example, Tsolwana

has only 8% of its households classified as higher income whilst in the case of

Lukhanji some 18% of the households are so classified. Indaka has only 6% of its

households higher income compared with eMnambithi/Ladysmith having 19% higher

income households.

Fourth, these disparities are also found if one examines the tax bases of

municipalities. For example, SARS publish the total personal tax assessments by

municipality and one finds significant differences in total taxable income across the

merged groups and within the merged municipalities. As one expects the total

personal taxable income is much greater in Category A municipalities than in the

Category B municipalities, but there are significant differences also within Category

B municipalities and particularly in each of the merger groups. In most of these

mergers, one (and in some cases two) municipality stands out as having a very

much higher total personal taxable income than the other municipalities being

merged. Clearly part of the merger process is to reduce disparities through such

mergers.

Finally, what is also noticeable is that in some of the mergers, one or more of the

municipalities being merged has an economic growth rate below that of the other

municipalities being merged. For example, Maletswai has a negative growth rate

compared with Gariep which had a positive growth rate. Most of the merged

municipalities in the Eastern Cape and KwaZulu-Natal had average economic growth

rates well below the average for other Category B municipalities.

It is clear from this data that merged municipalities have often been the result of one

or more municipalities having poor and limited economic bases compared with their

neighbouring municipality. Whilst again a reflection of the distorted apartheid spatial

patterns, demarcation often becomes a means through which the limited economic

bases of merging municipalities can be combined with the intention that through

reduced fixed costs of municipalities (single management structures etc) and merged

107

economic bases, there would be overall improvement in the living conditions of

people in such areas.

This is a very important point and reflects the spatial injustice described in the NDP.

Clearly, with limited redistribution occurring to reduce such spatial inequalities, there

will be increasing demands for communities on the edge of better resourced areas to

see demarcation as the means through which their economic potential and

opportunity will be increased.

Table 37: Employment and economic growth

Mun Code

DEM#

%Unemp

%Informal sector

% of High Income

Personal tax assessed (Million)

%Economic growth: 2013

Musina LIM341

20 19% 29% 14% 665,89 0,0365

Mutale LIM342

20 49% 32% 10% 686,48 0,0231

Thulamela LIM343

20 44% 36% 11% 5296,01 0,0218

Makhado LIM344

20 37% 33% 12% 4468,07 0,0218

Personal Income Tax Bases

Merging municipalities are not only about striving to improve settlement patterns,

leadership and economic bases, but they are also about creating more financially

viable municipalities. This is not easy, because as was indicated above, the spatial

disparities in South Africa are significant. In a situation where Category A

municipalities have just over 30% of the population but they generate over 60% of

the GDP, and where significant portions of the land surface are not economically

viable, ways must be found to improve the revenue generation of municipalities and

through that make funds available to municipalities. If a municipality generates a

greater portion of the GDP than its share of the population, it is more likely to have

far greater access to human, financial and technical resources to better the lives of

its residents.

108

The merged municipalities were compared on a number of financial indicators

showing important differences within and between the merged municipalities. Firstly,

if one considers existing rates generation as an important indicator of revenue

generation (and which can pay for a number of key powers and functions of

municipalities) one finds significant differences across the municipalities in terms of

rates generation. uMhlathuze, for example, generates over R330 million in rates

compared with Ntambanana generating just more than R1 million. This means that

the rates per households differ widely across municipalities. Places like Hlabisa, for

example, generate only R77 in rates per household compared with the municipality it

merged with, the Big Five False Bay municipality which generates R1328 per

household.

Municipal expenditure per household also varies across municipalities, but

disparities are not always as wide. In part this is due to the fact that fewer

municipalities have the ability to generate rates, particularly from business, and

many are almost completely reliant on grants for income. But there are differences

and KwaSani spends over R4000 per household compared with Ingwe with which it

merged spending just over R1000 per household.

Finally, and linked to the above, the number of municipal staff serving municipalities

also varies significantly. Using an index of the total number of staff per household,

one finds that in each of the mergers at least one municipality has proportionately far

lower numbers of municipal staff serving the population. This clearly impacts on

service delivery and the ability of a municipality to perform its municipal powers and

functions.

Table 38: Rates and staffing

Municipality Code DEM#

Total rates (000s)

Rates phh

Mun Exp phh

Municipal Staff phh

Musina LIM341

20 12287 613 2703 0,020

Mutale LIM342

20 2061 87 696 0,006

Thulamela LIM343

20 41712 266 1242 0,004

Makhado LIM344

20 40639 301 1266 0,005

109

Municipality Code DEM#

Total rates (000s)

Rates phh

Mun Exp phh

Municipal Staff phh

64695 2085 3409 0,016

Merging Infrastructure Realities

Municipal redemarcations are as much about improving the capability of

municipalities to deliver services as they are about other factors and criteria.

Municipalities were compared in terms of the degree to which their households had

access to basic network services. Overall, what one finds is that in most of the

merged municipalities, high degrees of formalised areas were found, with generally

good access to water, but levels of sanitation differed across and within the mergers.

As expected, the degree to which traditional rural communities were found in the

merged municipalities also differs significantly. The degree to which a municipality

has large portions of its area including high proportions of people living in traditional

rural communities is also an indicator of some of the most underserviced areas in

South Africa. Vulamehlo and Ntambanana municipalities have higher than average

proportions of people living in traditional areas and both were disestablished with

another area of such high proportions of traditional authorities, Ingwe, being merged

with KwaSani. Levels of CAPEX, too, ranged significantly from places such as

Aganang (disestablished) with the lowest, to Category A municipalities like

eThekwini at almost R5000 per household and then to smaller places like Baviaans

and Naledi which also had high levels of CAPEX per household. These high levels

could, however, be due to small populations.

Table 39: Infrastructure

Mun Code DEM#

1016 HH

%Formal

%Traditional

%Water

%Sanitation

Capex phh

Musina LIM341

20 33263 82,52 6,67 76,61 75,59 1758,01

Mutale LIM342

20 27084 87,17 12,08 79,49 4,05 1322,26

Thulamela

LIM343

20 172781 85,45 11,03 68,27 15,97 1043,37

Makhado LIM34 20 149219 87,91 9,87 51,89 14,77 1565,07

110

Mun Code DEM#

1016 HH

%Formal

%Traditional

%Water

%Sanitation

Capex phh

4

41490 76,76 13,31 75,35 56,77 2485,41

Merging Municipal Financial Realities

Having merged the municipalities, the question could be posed: what impact do such

mergers have on municipal financial management? National Treasury has

developed a system of monitoring financial distress across municipalities. On an

annual basis, they provide measures of eight variables which are ranked between 1

(performing well) and 3 (performing poorly). These variables are:

Cash Coverage: this measures the amount of cash on hand a municipality

has to meet its monthly payments as and when they fall due. Treasury

suggest that municipalities should have three months of average operational

expenditure available at any time.

Cash Balance: Identifies whether cash shortages / bank overdrafts pose a

“chronic” problem for the municipality.

Reliance on capital transfers: Determine the levels at which municipalities

are able to generate own funds to finance revenue generating assets to

enhance and sustain revenue generating streams

Overspending: This measures the over-spending of operational budgets and

tests the effectiveness of municipal spending in accordance with resources

available to them, what is the credibility of the budget and are municipalities

able to adjust expenditure should planned revenue not materialize.

Underspending of capital budgets: This shows the effectiveness of

municipal spending – but also provides an indication of whether municipalities

are compromising on capital programmes to resolve cash flow challenges, are

there planning deficiencies which are impacting on service delivery.

111

Debtors growth – this shows the year on year growth in debtors and

provides information on whether the municipality is exercising fiscal effort in

collecting outstanding debt. It demonstrates the extent to which financial

distress is the result of poor debtor management.

Debtors as a percentage of own revenue: this shows the revenue

management capabilities of municipalities.

Creditors as a percentage of cash: Shows whether the municipality is able

to meet its monthly commitments.

When totalled, the scores range between 8 (performs excellently on all variables)

and 24 (performs poorly on all variables). Municipalities which receive a total score

of greater than or equal to 16 are deemed to be in financial distress.

The financial distress scores were examined for the 2015/16 and 2016/17 years

given that 2016/17 (at least from August 2016) was the year in which most of the

new demarcations came into existence.

The financial distress scores for the 2015/16 and 2016/17 years were examined

looking at how the before and after merger situation had changed. What one finds is

that:

20 municipalities had no change in their status before and after the formal

mergers occurred and these were evenly split with 10 merged municipalities

staying the same and not being in financial distress and 10 merged

municipalities staying the same and being in financial distress;

Two municipalities got worse and have been classified for 2016/17 as being in

financial distress; and

Four municipalities indicated progress from being in financial distress to not

being in financial distress in 2016/17.

These are useful results in that they do show some evidence that financial

management systems have stayed in place in the transition with some slight

evidence of matters improving.

Table 40: Financial distress

112

Pre-2016 Municipality Name

Muni Code

New Municipality Name

New Muni Code

DEM #

Financial Distress 2015/16

Financial Distress 2016/17

Musina LIM341 Musina LIM341 20 YES -

Mutale LIM342 Thulamela LIM343 20 - -

Thulamela LIM343 Makhado LIM344 20 - -

Makhado LIM344 Collins Chabane LIM345 20 - -

Mergers and Audits

Given this indicative evidence that financial management seems to be largely in

place after the mergers, it was decided that audits also be investigated to see if they

have also largely remained without much change. In any merger it would be

expected that it would take some time for audits to stabilise given that systems may

not be synchronised, there is a need to rationalise and appoint new staff into an

integrated organogram, etc. The comparisons before and after the mergers indicate:

City of Tshwane: Same Unqualified with Findings

Kagisano-Molopo: Improved to Qualified

Enoch Mgijima: Same Disclaimer

Walter Sisulu: Worsened to Disclaimer

Mangaung: Worsened to Qualified

Rand West City: Same Unqualified with Findings

eThekwini: Same Unqualified with Findings

Umdoni: Same Unqualified with Findings

Ray Nkonyeni: Improve to Unqualified with no findings (Clean)

Raymond Mhlaba: Improve Unqualified with Findings

Inkosi Langalibalele: Not finalised

Alfred Duma: Worsened from Unqualified with Findings to Qualified

The New Big 5 False Bay: Improved to Unqualified with Findings

Dr Nkosazana Dlamini Zuma: Same Unqualified with Findings

Blouberg: Same Qualified

Molemole: Same Unqualified with Findings

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Polokwane: Worsened from Unqualified with Findings to Qualified

Dawid Kruiper: Improved to Unqualified with Findings

Tlokwe-Ventersdorp: Worsened to Disclaimer

Modimolle-Mookgopong: Not finalised

Tubatse Fetakgomo: Same Qualified

City of Mbombela: Same Unqualified with Findings

Collins Chabane: First audit Qualified

Makhado: Worsened Qualified to Adverse

Musina: Same Unqualified with Findings

Thulamela: Same Unqualified with Findings

Dr Beyers Naude: Worsened to Disclaimer

uMhlathuze: Same Unqualified with no findings (Clean)

Overall, one finds that

5 municipalities improved their audits

12 municipalities stayed the same

7 municipalities had worse audit results and

2 audits were not complete and one audit was new.

Importantly these results are far better than one would expect given that they show

there is no generalised immediate and negative impact on audit outcomes. Indeed,

with mergers you would expect audit results of merged municipalities to be worse

given that financial systems, policies and procedures have to be integrated, staff

need to be amalgamated and change management is the order of the day. In

addition, given that overall municipal audit results in South Africa worsened from

2015/16 to 2016/17, one would have expected merged municipalities to have

followed the same trend. There is no substantive evidence of this having happened.

Overall, one could argue these audit results are generally quite good given that 2016

was an election year with newly contracted persons being put in place and other staff

members having contracts come to an end. When coupled with the political

processes around elections one always expects results to be worse during that

period.

Table 41: Audit outcomes

114

Category

Municipality Name

Muni Code

Municipality Name

Muni Code

# 2015-16 Audit Outcome 2016/17

B2 Musina LIM341 Musina LIM341 20

Unqualified with findings

Adverse

B2 Mutale LIM342 Thulamela LIM343 20

Adverse/Disclaimer


B2 Thulamela LIM343 Makhado LIM344 20



B2 Makhado LIM344 Collins Chabane

LIM345 20

Qualified Qualified

Changing Senior Management Capacities

As indicated above, mergers come into effect on election dates and such dates also

bring with them the potential for significant changes in senior management and

instability due to electioneering and the like. It becomes useful then to measure the

degree to which the merged municipalities had less or more stability before or after

the elections. To analyse this the two most senior administrative positions were

examined to see how they would have changed between 2015/16 and 2016/17.

In the case of the Municipal Managers (MMs), one finds that:

Prior to the mergers there were 11 Acting MMs and after the mergers eight of

these 11 positions had become Permanent;

Prior to the mergers there were 18 Permanent MMs on contract, and of these

some 12 of these positions remain as permanent with four having acting

positions.

Overall, while the mergers may not have been responsible for improving the stability

of senior management in local governance, there is a good start on which to build

the merged municipalities.

Table 42: Municipal Managers

MM Acting 16/17 Permanent 16/17 Total

Acting 15/16 3 8 11

Permanent 15/16 4 12 16

115

MM Acting 16/17 Permanent 16/17 Total

Total 7 20 27

In the case of the Chief Financial Officers (CFOs), one finds that:

Prior to the mergers there were 12 acting CFOs and after the mergers four of

these 12 positions had become permanent;

Prior to the mergers there were 15 permanent CFOs on contract, and of these

some 10 of these positions remain as permanent with five having acting

positions.

The situation here is not as good as that of the MMs and it would be important to

ensure that in all merged municipalities all positions should become permanent as

soon as is possible.

Table 43: Chief Financial Officers

CFO Acting 16/17 Permanent 16/17 Grand Total

Acting 15/16 8 4 12

Permanent 15/16 5 10 15

Grand Total 13 14 27

Finally, it should also be noted that only one of the 49 municipalities involved in the

2011-2016 mergers has been under a Section 139 intervention prior to the merger.

This municipality was Ventersdorp, but it should be stated that none of the merged

municipalities has been placed under Section 139 intervention.

Table 44: MM and CFO vacancies

Municipality Name

Muni Code

Municipality Name

Muni Code

# MM vacancy 15/16

MM vacancy 16/17

CFO vacancy 15/16

CFO vacancy 16/17

Musina LIM341

Musina LIM341

20

Permanent Permanent Permanent Acting

Mutale LIM342

Thulamela LIM343

20

Permanent Permanent Permanent Acting

Thulamela LIM343

Makhado LIM344

20

Permanent Acting Permanent Permanent

Makhado LIM344

Collins Chabane

LIM345

20

Permanent Permanent Permanent Permanent

116

The Disestablishment Of Mutale And The Reconfiguration Of The Remaining

Municipalities In Vhembe: Makhado, Musina And Thulamela And The

Establishment Of A New Municipality Collins Chabane.

Since the transition from the Transitional Local Councils (TLCs) in 2000, the

Malamulele community, in the Vhembe District, has been submitting a proposal for

their own municipality to the Municipal Demarcation Board. This was motivated by

the fact that the initial TLC Levubu-Shingwedzi was merged with the old

Thohoyandou TLC to form Thulamela municipality. The Malamulele community’s

application has always failed in terms of the criteria as outlined in Section 24 and 25

of the Municipal Demarcation Act of 1998. Their call for a new municipality continued

until 2013/2014 when the community embarked on a protest. The Malamulele

community established a task team which submitted a new application to the new

Demarcation Board. The result of the assessment by the Board was that the

application still did not meet the requirements as provided for in legislation.

Then the Minister requested that a reconfiguration of municipalities in the whole of

Vhembe be undertaken and specifically that the Mutale Local municipality be

considered for disestablishment as it was not financially viable.

The MDB investigated the matter and concluded that it would:

1. Disestablish Mutale municipality;

2. Retain the four-municipality option for Vhembe District Municipality with the

creation of a new municipality significantly larger than the disestablished

Mutale municipality and consisting of a portion of Mutale, a portion of

Thulamela and a portion of Makhado.

3. The four-municipality is defined as follows:

a. Thulamela local municipality: Thulamela minus Wards 1, 7-18 and 40

(the so-called Malamulele area) and would gain Wards 1-6 and 13 from

Mutale. 117

b. Makhado local municipality would lose wards 1-4 and 7.

c. Musina would gain Wards 7-12 of Mutale.

d. The new municipality would then include Wards 1-4 and 7 from

Makhado and wards 4, 7-18 and 40 from Thulamela.

The Board was of the view that the Vhembe District could not have three

municipalities as other districts of its size had five or more local municipalities. The

Board then redetermined certain portions of Thulamela which included the

Malamulele area and portions of Makhado (including the Vuwani area) to a new

municipality.

This led to dissatisfaction in the areas of Vuwani who felt that this was done to

respond to the Malamulele matter. The Vuwani community made representations to

the Board led by Chief Masia. However, the MDB made its final decision on the

matter and the Vuwani community then approached the High Court in an attempt to

seek the reviewal or reversal of the decision.

The Polokwane High Court ruled in favour of the MDB on 29 April 2016.

A series of violent protests by the Vuwani community then took place, resulting in the

destruction of properties. The biggest destruction was the burning of approximately

21 schools. Effective teaching and learning in the area was seriously affected

despite various interventions including the engagement with the King and traditional

leaders and the appointment of a mediation panel by COGTA.

This ultimately led to an agreement just before the elections between Government

and local parties, with elections then being held. Post-elections the Vuwani

delegations continued to argue they would not be served by the Collins Chabane

Council and the situations continues to be affected with threats of stoppages and the

like.

What has also compounded some of the governance challenges is the fact that

monies from a number of these municipalities are part of the VBS banking scandal.

Here, a number of the municipalities from the area illegally deposited municipal

money with the VBS bank:

118

Vhembe District Municipality has the biggest exposure at R311-million, just

over a third of its annual total operating revenue;

Collins Chabane municipality‚ and

Makhado municipality.

Recovering these monies was “highly uncertain”, National Treasury informed the

Parliamentary finance committee. And it’s also unlikely these councils will receive a

bailout as local government is a separate sphere of governance.

This issue has nothing to do with redemarcation directly, but is symptomatic of the

generally poor levels of governance which can operate in such environments.

Summary Issues

The overall analysis of the MDB Capacity Assessment study reinforces that most of

the mergers/incorporations have been primarily where urban areas are being

merged with mainly rural areas. The areas of these municipalities have become very

large, and average population densities are becoming much lower by far. Council

representation and the number of wards generally reduces. Most incorporated areas

have a history of having been poorly governed.

In all such cases a wide variety of areas are impacted upon through such

mergers or consolidations. These include22:

Infrastructure

o Integrating and consolidating programmes

o Upgrading of data services

o Repair and maintenance

o Eliminating backlogs

Administrations

22 The Impact of Demarcations on the Financial Performance and Sustainability of Municipalities, Mkhululi Ncube and Nomfundo Vacu

119

o Rationalisation of services

o Change management costs

o Acquisition of new technology for human resources, financial and

payroll systems

o Harmonisation of systems

o Rationalisation of administrative policies

o Rationalisation of fees and tax rates

o Harmonisation of asset registers

o Rationalisation of voters roll

o Merger management, coordination and communication costs

Human Resources

o Harmonisation of wages, salaries and allowance (wages are often

set at the highest level paid by separate municipalities)

o Harmonisation of human resources policies

o Harmonisation of councillor allowances

o Costs associated with retraining and retooling of workers

o Costs associated with staff redeployment

o Retrenchment or staff layoff costs

Debt

o Debt servicing costs

o Liabilities

o Irrecoverable consumer debt

Revenues and Expenditures

o Increase in expenditures due to wage and services rationalisation

o Tariffs

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o Tariffs may increase for some consumers in previously low tariff

municipalities

Perverse Incentives

o Amalgamation offers municipalities an incentive to accumulate debt

so as to download this to a new municipality

o Last minute spending that result in budget overruns

Competition

o Diminished competition results in poor services

Overall, though, all the mergers to date reinforce the high levels of apartheid

differentiation where South Africa’s racial and spatial inequalities remain stark and

redemarcation is often seen as the best means of achieving redistribution.

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