OF eThekwini Council - Durban Minutes and...Catalytic Project Update and Recommendations : Durban...

- 3121 -

No. 67 MINUTES

OF

eThekwini Council

Minutes of proceedings of the Meeting of the eThekwini Council held

at the City Hall Main Auditorium, Church Walk, Durban

on Wednesday, 2016-05-04T10:00

PRESENT : Councillors L Naidoo (Speaker), JS Nxumalo (Mayor), NF Shabalala

(Deputy Mayor), MF Adam, C Arunajallam, SV Asbury, ME Bayeni,

A Beetge, S Bhanprakash, MN Bhengu, MR Bhengu, WJM Burne,

SS Butelezi, I Cassimjee, Hlengiwe Cele, JN Cele, MS Cele, NT Cele,

NB Chamane, BA Chili, AM Coen, TP Collins, RJ Crouch, P Davis,

HU De Boer, MAK Dladla, AN Dlamini, B Dlamini, CB Dlamini, JM Dlamini,

NR Dlamini, S Dlamini, BS Dludla, HE Dube, DL Du Bois, BA Fortein,

DC Gaillard, VE Gebashe, HD Goge, G Govender, NL Graham, BT Gumede,

NC Gumede, TJ Gumede, VC Gumede, ZRT Gumede, S Hansraj, PP Hlengwa,

BA Hlongwa, DG Hoorzuk, S Hoosen, NB Iyir, M Johnson, S Kalicharan,

SA Kaunda, NG Khawula, LB Khuzwayo, S Khuzwayo, VT Kunju, CB Langa,

NP Langa, P Luthuli, MT Mabaso, NT Mabaso, DD Mabizela, Z Madlala,

T Magubane, MQ Magwaza, NJ Makhanya-Sibiya, WL Mapena,

HG Maphumulo, SM Mchunu, SW Mcoyi, LM Meyer, P Mfeka, DM Mhlanzi,

SE Mhlongo, LM Mhlongo-Ntaka, AR Mitchell, MM Mkhize, MP Mkhize,

S Mkhize, ZM Mncwango, BR Mngadi, M Mngadi, NE Mnguni,

LN Mngwengwe, MC Mnyandu, S Morar, FT Moyo, BE Mpungose,

NE Msani, SNL Mshengu, BA Mthembu, MK Mthembu, ON Mthembu,

TM Mthethwa, BR Mtshali, TS Mtshali, N Munien, AB Mvubu, RM Mzobe,

Jane Naidoo, Jonathan Naidoo, P Naidoo, S Naidoo, SR Naidoo, TJ Ncane,

NB Ndlela, LN Ndlovu, MK Ndzimbomvu, ZS Ndzoyiya, VS Necobo,

OB Ngcobo, DL Ngema, S Ngema, MM Ngiba, TT Ngubane, LA Ngwazi,

SJM Nhlapho, MS Nkosi, NC Nofeketa, GM Noyce, B Ntshangase,

MM Ntshangase, NN Nyanisa, MS Nyawose, ZV Nzama, TT Nzuza,

P Padayachee, F Peer, RZ Phewa, BP Phungula, JJ Pienaar, D Pillay,

DR Pillay, KR Pillay, KB Pillay, Krishna Pillay, BD Prinsloo, GDA Pullan,

VOO Qulo, S Ryley, AN Shabalala, S Shange, MT Shelembe, PN Shembe,

DM Shozi, ME Sibiya, PM Sibiya, B Singh, D Singh, EL Singh, J Singh,

PS Sishange, AD Snyman, BA Sutcliffe, JC Van den Berg, MB Xhakaza,

SZ Xulu, NY Young, SW Zenzile, BO Zondo, MZ Zulu, TM Zuma,

MS Zungu, MS Zwane and there being 3 (three) vacancies.

ABSENT : Councillors M Abraham (on leave), HP Biyela (on leave - indisposed),

M Dasarath (on leave - indisposed), R Gokool (on leave), D Govender

(on leave - indisposed), S Govender (on leave - indisposed), MP Gumede

(on leave), SN Gumede (on leave - indisposed), BM Gwala

(on leave - indisposed), SKB Kikine (on leave - indisposed), SH Lubhede

(on leave - indisposed), RD Macpherson (on leave), BA Mkhize

(on leave - indisposed), DF Mncwabe (on leave - indisposed), AG Mthembu

(on leave), NE Mthembu (on leave - indisposed), HM Ndlovu, S Ndlovu

(on leave), SP Ngcobo (on leave - indisposed), M Nojiyeza

(on leave - indisposed), P Pillay (on leave), ZR Sokhabase (on leave),

- 3122 - eThekwini Municipality

(Council Minutes - 2016-05-04)

WM Thring (on leave), P Zungu (on leave - indisposed), D Ganesh (on leave),

RJ Lefevre, V Lutyeku, JL Mbongwa, LP Mdlalose, NI Mkhize, ZP Mthethwa,

GS Ngcobo, MC Ngcobo, BA Ngwane and JB Sosibo.

AMAKHOSI

PRESENT : Inkosi VR Cele, Inkosi S Mlaba and Inkosi ZA Ngcobo.

AMAKHOSI

ABSENT : Inkosi BF Bhengu, Inkosi TF Gwala, Inkosi NM Hlengwa, Inkosi PP Luthuli

(on leave), Inkosi KS Makhanya, Inkosi DZ Mkhize (on leave),

Inkosi TBE Mkhize, Inkosi RF Mthembu (on leave), Inkosi MB Ngcobo and

Inkosi EB Shozi (on leave).

OFFICIALS

PRESENT : Messrs/Mesdames SO Cele (Acting City Manager), N Moerane (Head : Legal

Services and Compliance) M Mhlongo (Deputy Head: Litigation, Legal

Services and Compliance), BM Mhlongo (Deputy Head: Office of the

Speaker), T Ndlovu (Manager: Council Committees), KR Ramsunder

(Chief Committee Officer) and K Dweba (Principal Committee Officer).

(At the commencement of the meeting 153 Councillors were present, comprising ANC - 91,

DA - 38, MF - 5, NFP - 6, IFP - 8, ACDP - 1, TA - 1, COPE - 1, APC - 1 and INDEPENDENT - 1).

_________________

1. NOTICE CONVENING THE MEETING

The Acting City Manager read the Notice convening the meeting as per the statutory

requirement

2. OPENING

The Speaker declared the meeting open and thereafter extended a warm welcome to

the Mayor, Deputy Mayor, Chief Whip; Members of the Executive Committee;

Honourable Councillors; Amakhosi present, City Manager; representatives

from Legal Services and Compliance, Media; Distinguished Guests and Members of

the Administration.

3. NATIONAL ANTHEM

At the request of the Speaker the meeting stood to sing the National Anthem of the

African Union and the National Anthem of South Africa.

4. OPPORTUNITY FOR PRAYER/MEDITATION

The Speaker requested the Council to pray for peace and tolerance and remember

those who had passed on, especially the late Councillor NP Sibiya who passed away

tragically and the wife of Mr. Willies Mchunu, Provincial ANC Deputy Chairperson

and MEC for Transport, Community Safety and Liaison, who passed away after

an illness.

He extended deepest condolences to the families of the late Councillor Sibiya and

MEC Mchunu.



5. OFFICIAL ANNOUNCEMENTS

The Speaker advised that he would deal with items 5 and 6 of the Order of

Procedure, relative to official announcements and his report, concurrently and

emphasized that the Rules of Order would be applied stringently in order to avoid

any disruptions. He then reminded Councillors to sign the Attendance Register which

was being circulated, advising that failure to do so would result in them being

reflected in the Minutes as having been absent from the meeting. Councillors were

requested to notify the Officials on duty if they wanted to leave the meeting for any

reason. However, Councillors were also advised that in terms of the Rules,

no Councillor should be allowed to leave or enter the meeting when voting was in

progress.

He congratulated all Councillors who celebrated their birthdays in the month of

April.

In view of translation purposes, Councillors were requested to talk slowly and clearly

during the proceedings.

Councillors were requested to switch off their microphones after speaking as the

sound system would mal-function if microphones were left on. Councillors were

reminded and encouraged to wear their name badges when attending Council

meetings and to dress appropriately to uphold the dignity of the Council.

In view of disruptions being experienced during the proceedings as a result of cell

phones, Councillors were requested to switch them off or activate silent mode once

the meeting commenced.

The Speaker thereafter advised that for the month of April 2016, the following ten

Councillors had held Community report back meetings and had submitted reports to

the Office of the Speaker:-

Councillors B Dlamini (Ward 46), BS Dludla (Ward 102), NR Dlamini

(Ward 85), MS Nyawose (Ward 79), SM Mchunu (Ward 9), BA Chili

(Ward 3), JL Mbongwa (Ward 24), PS Sishange (PR Councillor),

T Magubane (Ward 98) and SH Lubhede (Ward 37).

It was advised that the issues discussed at the above-said meetings pertained to

service delivery, school building, arts and culture, water and sanitation and housing.

In respect of Ward Committee functionality, the Speaker advised that ten Ward

Committees had met and had submitted evidence of such meetings to his Office.

He advised that the holding of so few meetings was unsatisfactory and urged all ward

Committees to have regular meetings making the point that with effect from 1st May,

those Ward Committees that don’t meet would not receive their stipends.

The Speaker indicated that on 2016-04-25, SALGA, in partnership with Old Mutual

conducted a financial management programme for all Councillors. The programme

covered areas of financial management, pension pay out options and investments.

It was noted that Councillors that had attended found the session useful.



In concluding the Speaker reported that he had received correspondence from

SALGA in respect of the Councillors Pension Fund. It was noted that the 2014/15

Audited Benefit Statements would be issued by June 2016 and the 2015/2016

Audited Statements would be issued by December 2016. Further, all concerns

regarding the Pension Fund had been raised with SALGA, COGTA and the National

Minister of Finance.

6. APPLICATIONS FOR LEAVE OF ABSENCE

RESOLVED:

The following Councillors and Amakhosi be granted leave of absence as indicated:-

COUNCILLORS

Councillor M Abraham : 2016-05-04 (Personal Commitments)

Councillor H Biyela : 2016-05-03 to 04 (Indisposed)

Councillor M Darasath : 2016-05-04 (Indisposed)

Councillor R Gokool : 2016-05-04 (Personal Commitments)

Councillor D Govender : 2016-05-04 (Indisposed)

Councillor S Govender : 2016-05-03 to 05 (Indisposed)

Councillor M Gumede : 2016-05-04 (Personal Commitments)

Councillor SN Gumede : 2016-05-03 to 04 (Indisposed)

Councillor BM Gwala : 2016-05-04 to 06 (Indisposed)

Councillor NB Iyir : Request to leave at 12:00

Councillor K Kikini : 2016-05-04 (Indisposed)

Councillor SH Lubhede : 2016-05-03 to 05 (Indisposed)

Councillor RD Macpherson : 2016-05-04 (Personal Commitments)

Councillor BA Mkhize : 2016-05-04 (Indisposed)

Councillor MM Mkhize : 2016-05-04 (Personal Commitments)

Councillor DF Mncwabe : 2016-05-04 to 05 (Indisposed)

Councillor AG Mthembu : 2016-05-04 to 09 (Personal Commitments)

Councillor NE Mthembu : 2016-05-04 (Indisposed)

Councillor S Ndlovu : 2016-05-03 to 06 (Personal Commitments)

Councillor SPG Ngcobo : 2016-05-04 to 06 (Indisposed)

Councillor M Nojiyeza : 2016-05-04 to 05 (Indisposed)

Councillor JJ Pienaar : 2016-05-03 to 04 (Indisposed)

Councillor P Pillay : 2016-05-04 (Personal Commitments)

Councillor ZR Sokhabase : 2016-05-03 to 09 (Indisposed)

Councillor WM Thring : 2016-05-04 (Personal Commitments)

Councillor P Zungu : 2016-05-04 (Indisposed)

AMAKHOSI

Inkosi PP Luthuli : 2016-05-04 (Personal Commitments)

Inkosi DZ Mkhize : 2016-05-04 (Personal Commitments)

Inkosi RF Mthembu : 2016-05-04 (Personal Commitments)

Inkosi EB Shozi : 2016-05-04 (Personal Commitments)



7. CONFIRMATION OF MINUTES: Meeting held 2016-03-31

Councillor WJM Burne referred to item 1.3 on page 3004 of the Minutes, relative to

Catalytic Project Update and Recommendations : Durban Iconic Tower and advised

that the Minutes thereon was incorrect as the Chief Whip had initially moved that the

item be deferred. He thereafter moved that the item be withdrawn. The minutes

reflected that the item had been referred back to the Executive Committee for further

consideration.

Some Councillors advised that the Minutes were correct as the Chief Whip had

submitted a written request, in terms of Rule of Order 20 (1) (c) for the item to be

Referred Back.

Following debate and after the Deputy Head : Legal and Compliance advised that the

Minutes should be a true reflection of the meeting and that the Council could decide

on whether or not to confirm the Minutes pending resolution of the item in question,

it was

RESOLVED:

That, with the exception of item 1.3 on page 3004 of the Minutes, relative to

Catalytic Project Update and Recommendations : Durban Iconic Tower, the Minutes

of the meeting of the Council held on 2016-03-31, as circulated, and taken as read,

be and they are hereby confirmed, it being recorded that the Speaker would study the

transcript of the item in question and provide a ruling thereon at the next meeting of

the Council.

8. QUESTIONS IN TERMS OF SECTION 27 OF THE RULES OF ORDER

The following Questions in terms of Section 27 of the Rules of Order were

submitted:-

8.1 Questions submitted by Councillor S Naidoo: Illegal Occupation of Low Cost House

(221/8/4/1):

City Integrity and Investigations Case Ref: INV 036/07/2015 refers to the illegal

occupation of a council-owned low cost home in Tongaat by a senior official of the

Municipality. The report was finalized and released to the respective Heads of

Department and the City Manager on the 27th February 2016, with recommendations;

which “recommendations become due for implementation as soon as the report is

issued” according to CIIU.

Have the respective Heads of Department and the City Manager read the report

and taken the necessary steps to implement the recommendations in the report?

If not, why?

The Acting City Manager advised that the matter was receiving attention and the

Head : Legal Services and Compliance had been requested to assist and advice.

Further the matter was sub-judice.

__________________

His Worship the Mayor, Councillor JS Nxumalo presented the First Report of

the Executive Committee.



FIRST REPORT OF THE EXECUTIVE COMMITTEE (Meeting held on Tuesday, 2016-04-19)

PRESENT : Executive Committee Members JS Nxumalo (Mayor and Chairperson),

NF Shabalala (Deputy Mayor), JN Cele, HU De Boer, SN Gumede,

ZRT Gumede, ZM Mncwango, BR Mtshali, MS Nkosi and F Peer.

_____________

1. REPORT OF THE HUMAN SETTLEMENTS AND INFRASTRUCTURE

COMMITTEE: MEETING HELD ON 2016-04-05

(Page R1)

1.1 Nomination of eThekwini Municipality by KZN COGTA to Participate in COGTA

EPWP Waste Management Programme (4/3/5/1):

(Page 23: Human Settlements and Infrastructure Committee - Agenda 2016-04-05)

The Executive Committee has been advised that reservations have been raised at the

Human Settlements and Infrastructure Committee meeting regarding the wages of

the Expanded Public Works Programme (EPWP) not being market-related or aligned

to a minimum wage. It was stated that the matter has been approved subject to the

Department of Co-operative Governance and Traditional Affairs (GOGTA) being

invited to give a presentation to the Committee.

Thereafter,

COMMITTEE RECOMMENDS:

1.1.1 That the eThekwini Municipality participate on the COGTA EPWP Waste

Management Programme as requested by the KwaZulu-Natal Department of

Co-operative Governance and Traditional Affairs.

1.1.2 That the KwaZulu-Natal Department of Co-operative Governance and Traditional

Affairs be accommodated to present the programme during the month of

February 2016.

ADOPTED.

1.2 Proposed Public Private Partnership: Operation of New Wastewater Works for

Umdloti and Umkomaas and Upgrade of Tongaat WWTW WS 2015/098

(23/1/11/2/1/2):

(Page 25 : Human Settlements and Infrastructure Committee - Agenda 2016-04-05)

The Executive Committee noted that the Democratic Alliance was not in support of

the recommendations on the basis that they would discuss the matter with the Party

Caucus in the first instance and the


1.2.1 That the City Manager be hereby authorised to notify National and KwaZulu-Natal

Provincial Treasury of its intent to initiate processes in terms of the Municipal Public



Private Partnership (PPP) Regulations, to assess the suitability of a PPP for the

Operation and Maintenance of the new Wastewater Treatment Works for Umdloti

and Umkomaas and the Upgrade of Tongaat Waste Water Treatment Works, which

processes could entail conducting a feasibility study and to register said projects with

the National Treasury PPP Unit.

1.2.2 That the Head: Water and Sanitation be authorised to appoint, if necessary, a suitably

qualified internal Project Officer in terms of Section 7 of the Municipal Public

Private Partnership Regulations and appoint a Transaction Advisor to undertake a

feasibility study.

1.2.3 That the Head: Water and Sanitation be authorised to apply to the Project

Development Facility (PDF) of National Treasury for funding to defray expenses of

the project.

1.2.4 That the findings and recommendations of the feasibility study carried out by the

Transaction Advisor be presented to the Council.

1.2.5 That the Head: Water and Sanitation be authorised to take any other action necessary

and desirable in order to effect this resolution for the Council to be provided with all

relevant information In relation to the provision of said Municipal Services.

1.2.6 That the decision on designing and procuring the contract will be made based on the

report of the Transaction Advisor.

1.2.7 That the report is only intended to appoint the Transaction Advisor to carry out the

feasibility study and subsequently make the necessary recommendations.

Vote No.: Y6225 R1 754 800.00 (Provided in 2015/16 Capital Programme)

R8 000 000.00 (Provided in 2016/17 Forward Capital

Programme)

FC No.: 33/C

ADOPTED.

1.3 Review of Sundry Water Tariffs for 2016/2017: WS2016/013 (7/6/1/2):

(Page: Human Settlements and Infrastructure Committee - Agenda 2016-04-05)


the recommendations.

Thereafter


1.3.1 That Council resolves in terms of Section 75(a) of the Local Government Municipal

Systems Act 2000 (Act 32 of 2000) that with effect from 2016-07-01, the tariff set

out in Annexure “A” of the report WS2016/013 of the Head: Water and Sanitation

dated 2016-01-25 be levied with effect from 2016-07-01, in respect of the Supply of

Sundry Water Services.

1.3.2 That subject to the adoption of .1 above, the City Manager be directed to comply

with the provisions of Section 75(a) (3) and (4) of the Local Government Municipal

Systems Act 2000 (Act 32 of 2000).



As some Councillors were not in support of the above-mentioned tariff increase,

the aforesaid recommendations of the Executive Committee were put to the

vote. With 153 Councillors present, 115 Councillors (ANC – 91, MF – 5,

NFP - 6, IFP – 8, ACDP – 1, TA – 1, COPE – 1, APC – 1 and IND – 1) voted in

favour and 38 DA Councillors voted against.

The above-recommendations of the Executive Committee were, by the majority

vote, ADOPTED.

1.4 Proposed Sale of Proposed Portion [A] of Erf 29 and Erf 209 both of Phoenix

Industrial Park: Aberdare Drive, Phoenix (17/2/1/2/3):



1.4.1 That the eThekwini Municipality declares in terms of 14(2)(a) and (b) of the

Municipal Finance Management Act 56 of 2003 that:-

1.4.1.1 The properties described as portion [A] of Erf 29 and Erf 209 both of Phoenix

Industrial Park, Aberdare Drive, Phoenix are not required for providing minimum

level of basic Municipal Services; and

1.4.1.2 The open market value of the properties is currently assessed at a value of

R7 100 000.00 (Seven Million One Hundred Thousand Rand), exclusive of VAT,

and that the economic and community values have been considered.

1.4.2 That in terms of Section 40(2)(b)(i) of the Supply Chain Management Policy, read in

conjunction with Regulation 7 of the Municipal Assets Transfer Regulations,

Proposed Portion [A] of Erf 29 and Erf 209 both of Phoenix Industrial Park,

Aberdare Drive, in extent approximately 2.0158Ha as depicted on Plan No.

SH 9664A be sold in freehold by private treaty to Phoenix Industrial Park Lot

Owners Association (Registration Number 80/08824/08) at a price of R7 100 000.00

(Seven Million One Hundred Thousand Rand), exclusive of VAT, such purchase

price reflecting the current market value of the land as assessed by a registered

Valuer.

1.4.3 That proposed Portion [A] of Erf 29 and Erf 209 both of Phoenix Industrial Park are

subject to numerous services and therefore a Sewer and Drain, Watermain and

Electric Cable Servitude must be registered over the entire area to be alienated. This

condition will be incorporated into the Sale Agreement and registered as servitudes

against the Title Deeds of the affected properties.

1.4.4 That in the event of objections being lodged to the proposed disposal of Proposed

Portion [A] of Erf 29 and Erf 209, both of Phoenix Industrial Park, in extent

approximately 2.0158Ha as depicted on Plan No. SH 9664A, the matter be referred

for Resolution in terms of Section 50 of the Supply Chain Management Policy

headed “Resolution of Disputes Objections, Complaints and Queries.

1.4.5 That authority be granted to the Bid Adjudication Committee to consider the report

to deviate from the procurement process in terms of Section 36(i)(a)(v) of the Supply

Chain Management Regulations in order to formally sell Proposed Portion [A] of Erf

29 and Erf 209 both of Phoenix Industrial Park, in extent approximately 2.0158Ha as

depicted on Plan No. SH 9664A, by private treaty to Phoenix Industrial Park Lot

Owners Association (Registration Number 80/08824/08).



1.4.6 That in the event of the sale not being finalized within 6 (six) months from the date

of Council authority being granted, a report be submitted by the Head: Real Estate to

the Bid Adjudication Committee to review the purchase price in line with the current

market value of the property where there has been a change in the market value.

1.4.7 That the registration of a Sewer, Watermain and Electrical Cable Servitude shall be

done simultaneously with the transfer.

1.4.8 That subject to the adoption of .1 to .7 above, and the approval of the Bid

Adjudication Committee, the Head: Real Estate Unit be authorized to sign all

documents necessary to conclude the agreements.

ADOPTED.

1.5 Proposed Registration of Aerial Bridge Servitude and Creation of a Bridge Support

Servitudes Over Municipal Road: Portion of Remainder Of Erf 181 Verulam

(21/7/5):



1.5.1 That the eThekwini Municipality declares in terms of Section 14(2)(a) of the


1.5.1.1 That the portion described as Erf 181 Verulam is not required for the provision of

minimum level of basic Municipal Services; and

1.5.1.2 The clearance has been received from the Human Settlements Department stating

that the portion of a road area is not required for housing purposes as reflected on

Annexure C of the report dated 2015-07-30 (an updated Technical Clearance has

been requested).

1.5.1.3 The fair market value of the affected Portion of the Remainder of Erf 181 Verulam is

currently assessed at a value of R73 000.00 (Seventy Three Thousand Rand),

exclusive of VAT, and that the economic and community values have been

considered.


conjunction with Regulation 7 of the Municipal Assets Transfer Regulations, a

Portion of a road area described as remainder of Erf 181 Verulam, in extent

approximately 213m2, as depicted on Plan No. SJ 4671/10A be closed and an Aerial

Bridge Servitude rights be granted to Dineam Trade (Pty) Ltd at a compensation

amount of R73 000.00 (Seventy Three Thousand Rand), exclusive of VAT, such

compensation reflecting the current market value of the land as assessed by a

registered Valuer.

1.5.3 That approval be given subject to the proposed development being in line with the

proposed re-alignment of Ireland Street. This condition will be incorporated into the

Sale Agreement.

1.5.4 That an aerial bridge servitude extending from 6.04m above ground level to 7.34m

must be registered in favour of Dineam Trade (Pty) Ltd.



1.5.5 That a column supporting the bridge is close to the municipal sewer, the top of its

base must be below the invert of the pipe.

1.5.6 That the Bridge column support servitude, the approximate positions as depicted on

the plan Annexure A, must be registered over the land in favour of Dineam Trade

(Pty) Ltd.

1.5.7 That in terms of Section 211 of Ordinance 25 of 1974, a portion of the road area

described as remainder of Erf 181 Verulam, in extent approximately 213m2,

as depicted on Plan No. SJ 4671/10A, be closed subject to all costs in connection

therewith being borne by Dineam Trade (Pty) Ltd, whether the application for

deproclamation is successful or not, and in this regard a deposit of R12 000.00

(Twelve Thousand Rand) is to be lodged with the City Treasurer to cover the

estimated costs of survey and deproclamation.

1.5.8 That in the event of objections being lodged to the proposed closure and alienation of

a portion of a remainder of Erf 181 Verulam, in extent approximately 213m2, as

depicted on Plan No. SJ 4671/10A, when it is statutorily advertised, the matter be

referred to the Member of the Executive Council (MEC) responsible for

Co-operative Governance & Traditional Affairs for consent.



Chain Management Regulations in order to formally close and alienate a portion of a

remainder of Erf 181 Verulam, in extent approximately 213m2, as depicted on Plan

No. SJ 4671/10A, by private treaty to Dineam Trade (Pty) Ltd.

1.5.10 That in the event of objections lodged to the proposed closure and disposal of a

portion of a remainder of Erf 181 Verulam, in extent approximately 213m2, as

depicted on Plan No. SJ 4671/10A, when it is statutorily advertised, the matter be

referred to the City Manager for a decision in terms of the section of the Supply

Chain Management Policy headed “Resolution of Disputes, Objections, Complaints

and Queries” for final decision.

1.5.11 That in the event of the alienation not being finalised within 6 (six) months from the

date of Council authority being granted, a report be submitted by the Head: Real

Estate to the Bid Adjudication Committee to review the purchase price in line with

the current market value of the property where there has been a change in the market

value.


Adjudication Committee, the Head: Real Estate Unit be authorised to sign all


REFERENCE BACK

In terms of Rule of Order 20(1)(c), Councillor WL Mapena, seconded by

Councillor NJ Makhanya-Sibiya, moved as a procedural motion that the

above-mentioned recommendations be REFERRED BACK to the Executive

Committee and the Human Settlements and Infrastructure Committee for

further consideration of recommendation 1.5.7 pertaining to closure of a road.



CARRIED

The above-mentioned motion to Refer Back was CARRIED.

Whereafter, it was

RESOLVED:

That the recommendations of the Executive Committee, in respect of the item

entitled Proposed Registration of Aerial Bridge Servitude and Creation of a

Bridge Support Servitude Over Municipal Road: Portion of Remainder Of Erf

181 Verulam, be referred back to the Executive Committee and the Human

Settlements and Infrastructure Committee for further consideration of

paragraph 1.5.7 thereof, pertaining to road closure.

1.6 Review on Tariffs 2016/17: Human Settlements Administration (7/6/1/2):




Caucus in the first instance.


1.6.1 That the Council of eThekwini Municipality resolve in terms of Section 75(a) of the

Local Government Municipal Systems Act of 2000 (Act 32 of 2000), the tariffs

relating to Human Settlements Administration as set out in the attached Annexure

‘A’, of the report of the Head: Human Settlements Unit dated 2016-02-29,

be approved, and implemented with effect from 2016-07-01.


with the provisions of Section 75(a) of the Local Government Municipal Systems

Act of 2000 (Act 32 of 2000) as follows:-

1.6.2.1 To display a copy of this resolution and the said tariff of charges conspicuously:-

(a) On the City Hall Notice Board, and

(b) At such other places within the Municipality as the City Manager may

determine,

1.6.2.2 To seek to convey the information referred to in the said notice to the public on East

Cost and Ukhozi Radio Stations.

1.6.2.3 To send a copy of the notice to the KZN Member of the Executive Council (MEC)

responsible for Co-operative Governance and Traditional Affairs.

1.6.2.4 To publish in the Ezasegagasini Metro a notice in the following format:-



ETHEKWINI MUNICIPALITY

Notice is hereby given that:-

(a) A resolution of the kind contemplated in section 75 A (2) of the Local

Government: Municipal Systems Act 2000 (Act 32 of 2000) was passed by

the Municipal Council on………………………………

(b) A copy of the said resolution and annexed tariff of charges is available for

inspection at:-

(i) City Hall, Pixley kaIsaka Seme (West) Street, Durban

(ii) ………………………………………..etc

(c) The effective date for the implementation of the said tariff of charges is

2016-07-01

………………………………..

CITY MANAGER

ETHEKWINI MUNICIPALITY

Date…………………………….







vote, ADOPTED.

1.7 Proposed Alienation and Consolidation of Land: Road Reserve Proposed Erf [A] and

Erf 1410 Both of KwaMashu L to the Salim Munshi Family Trust (Nyala Road

KwaMashu L) (17/2/1/2/3):



1.7.1 That the eThekwini Municipality declares in terms of 14(2)(a) and (b) of the


1.7.1.1 That the portion of properties described as Erf [A] and Erf 1410 both of KwaMashu

L are not required for providing minimum level of basic Municipal Services; and

1.7.1.2 The current market value of the property is currently assessed at a value of

R930 000.00 (Nine Hundred and Thirty Thousand Rand), exclusive of VAT.

1.7.1.3 That clearance has been received from the Human Settlements Unit stating that the

property is not required for housing purposes as reflected on Annexure D of the

report dated 2015-10-21 (an updated Land Clearance has been requested).




conjunction with Regulation 7 of the Municipal Assets Transfer Regulations, the

properties described as proposed Erf [A] and Erf 1410 both of KwaMashu L in

extent approximately 389m2 and 1929m2 respectively, Registration Division FU in

the Durban Entity, Province f KwaZulu-Natal as depicted on Plan No. 1114/1997

and SJ 4686/6C be sold in Freehold by private treaty to the SalimMunshi Family

Trust (Trust Number 1T5/2003) at a price of R930 000.00 (Nine Hundred and Thirty

Thousand Rand only) exclusive of VAT, such purchase price reflecting the current

market value of the land as assessed by a registered Valuer.

1.7.3 That an encroachment levy of 10% per annum from the date of occupation to date of

transfer due to the existing development by the Trust over Erf 1410 KwaMashu L be

paid by the SalimMunshi Family Trust.



Chain Management Regulations in order to formally sell Erf [A] and Erf 1410 both

of KwaMashu L, as depicted on Plan No. SJ 4686/6C to the SalimMunshi Family

Trust, Trust Number 1T5/2003.

1.7.5 That in terms of Section 211 of Ordinance 25 of 1974, the road areas depicted on

Plan No. SJ 4686/6C, are to be permanently closed subject to all costs in connection

therewith being borne by SalimMunshi Family Trust, Trust Number 1T5/2003

whether the application for deproclamation is successful or not, and in this regard a

deposit of R12 000.00 (Twelve Thousand Rand only) is to be lodged with the City

Treasurer to cover the estimated costs of survey and deproclamation.

1.7.6 That the rezoning of proposed Erf [A] of KwaMashu L from Existing Street purposes

to Mixed Use purposes shall be undertaken by and at the cost of the Purchaser.

1.7.7 That in the event of objections being lodged to the proposed deproclamation of

proposed Portion Erf [A] of KwaMashu L, when it is statutorily advertised, the

matter be referred to the Member of the Executive Council (MEC) responsible for

Co-operative Governance & Traditional Affairs for consent.

1.7.8 That in the event of objections being lodged to the proposed sale of Portion Erf [A]

and Erf 1410 both of KwaMashu L, the matter be referred for resolution in terms of

Section 50 of the Supply Chain Management Policy headed “Resolution of Disputes,

Objections, Complaints and Queries”;

1.7.9 That in the event of the sale not being finalised within 6 (six) months from the date

of Council authority being granted, a report be submitted by the Head: Real Estate to

the Bid Adjudication Committee to review the purchase price in line with the current

market value of the property where there has been a change in the market value.


Adjudication Committee, the Head: Real Estate Unit be authorised to sign all


ADOPTED.



1.8 Review of Domestic Refuse Removal User Charge Tariffs for 2016/2017

(SW2016/003) (7/6/1/2):




Caucus in the first instance,



Systems Act of 2000 (Act 32 of 2000), that the tariffs set out in Annexure ‘A’ of the

report SW2016/003 of the Head: Cleansing and Solid Waste dated 2016-01-19,

be levied with effect from 2016-07-01 in respect of the supply of Domestic Refuse

Removal Services.


with the provisions of Section 75(a)(3) and (4) of the Local Government Municipal

Systems Act of 2000 (Act 32 of 2000).







vote, ADOPTED.

1.9 Sewage Disposal User Charge Tariffs for 2016/2017: WS2016/008) (7/6/1/2):






1.9.1 That Council resolves in terms of Section 75(A) of the Local Government Municipal

Systems Act 2000 (Act 32 of 2000) that the tariff set out in Annexure “A” of the

report WS2016/008 of the Head: Water and Sanitation dated 2016-03-08, be levied

with effect from 2016-07-01, in respect of the Sewage Disposal Services to

consumers.


with the provisions of Section 75(a)(3) and (4) of the Local Government Municipal

Systems Act 2000 (Act 32 of 2000).







vote, ADOPTED.



1.10 Potable Water Tariffs for 2016/2017 (WS2016/036) (7/6/1/2):

(Page 538: Human Settlements and Infrastructure Committee - Agenda 2016-04-05)






Systems Act 2000 (Act 32 of 2000) that the tariff set out in Annexure “A” of the

report WS2016/036 of the Head: Water and Sanitation dated 2016-02-22, be levied

with effect from 2016-07-01, in respect of the supply of water to consumers.

1.10.2 That in order to accommodate the water challenges pertaining to the prevailing

drought conditions, the Tariffs for Water Consumption contain a provision for

drought tariff surcharge of 15% to apply in the event of the Municipality determining

that water conservation measures must be introduced, or being obliged to introduce

such measures in terms of legislation.

1.10.3 That subject to the adoption of .1 and .2 above, the City Manager be directed to

comply with the provisions of Section 75(a)(3) and (4) of the Local Government

Municipal Systems Act 2000 (Act 32 of 2000).







vote, ADOPTED.

1.11 Request for Funding in Response to Court Order (22/8/4/1):

(Page L1: Human Settlements and Infrastructure Committee - Agenda 2016-04-05)


1.11.1 That the construction of 10 temporary informal structures at an estimated cost of

R400 000 (Four Hundred Thousand Rand) in Emaos in compliance with the Court

Order dated 15 February 2016, be approved.

1.11.2 That subject to the adoption of .1 above, Council approves an adjustment to the

capital budget for the sum of R400 000 (Four Hundred Thousand Rand) from savings

to be identified by the Chief Financial Officer.

1.11.3 That the required funding to be sourced immediately within the total approved

budget and adjustment budget be done to cater for the expenditure.

1.11.4 That the City accepts the donation of R100 000 (One Hundred Thousand Rand) from

the Mahogany Ridge Property owners free of any encumbrances which will partially

offset the cost of constructing informal structure and the balance will be met by

Council.

ADOPTED.



1.12 Application to Sell Various Portions of Land to KwaZulu-Natal Department of

Human Settlements for Resettlement of Inanda Displaced Trader Groups

(1702010203):

(Page 49 of the Human Settlements and Infrastructure Agenda dated 2016-03-01)


1.12.1 That the Municipality declares in terms of Section 14 (6) of the Municipal Finance

Management Act 56 of 2003 read together with Regulation 20 of the MFMA Asset

Transfer Regulations that Erf 798 Trenance manor, Portion 1 of Erf 1 Redfern,

Erven74-77 and 85-87 Lenham and a Portion of the Remainder F Lot Sykes

No.15658 be transferred to the KwaZulu-Natal Department of Human Settlements in

the amount of R30.00 (Thirty Rand) per square metre in terms of existing Displaced

Trader Programme.

1.12.2 That a suitably worded condition in favour of the Municipality be included as a

restriction in title in respect of all the sale agreements and that this condition is to be

carried forward in title when transfer takes place from the Department to the various

displaced trader groups.

1.12.3 That all costs of survey are to be for the account of the KZN Department of Housing.

1.12.4 That the Head: Real Estate be authorized to sign all documents necessary to conclude

the various agreements.

ADOPTED.

2. REPORT OF THE COMMUNITY AND EMERGENCY SERVICES


(Page R9)

2.1 One Nation Cup: Germany 2016(13/2/1/1/2):

(Page 26: Community and Emergency Services Committee - Agenda 2016-04-07)

The Executive Committee requested that the budget to fund 2 additional Councillors

who will travel with the Squad be circulated to the members of the Committee and

that the Euro be used as the appropriate currency. Thereafter, it was


2.1.1 That TEAM ETHEKWINI be authorized to participate in the One Nations Cup

Tournament to be held in Germany from 30 May 2016 to 04 June 2016, the departure

date being 28 May 2016 and the return date being 05 June 2016.

2.1.2 That authority be granted for a delegation of 24 people to be sent to the tournament

comprising 16 participants, 3 technical team members, 2 Councillors and

3 Administrative members.

2.1.3 That subject to .1 and .2 above, subsistence and travelling allowances for all support

members as per Council policy, be approved as follows:-



DESCRIPTION AMOUNT

1. Flights and Insurance x 19 people @ R 16 000 R 304 000, 00

2. Team Preparation Expenses i.e. Selection, training, friendly games,

camps, transport, nutritionist, snacks, water and expert at HPC x 4

months @ R1 000, 00 per athlete x 25 athletes

R100 000, 00

3. Team uniform @ R2 500, 00 x 19

R47 500, 00

4. Visas x 19 at R1 200, 00

R22 800, 00

5. Administrative support Staff expenses:

Travel, visa and insurance @ R18 000, 00

Accommodation @ R 2 000, 00 p/n x 7 nights @ R14 000

Uniform @ R2 500, 00

R18 000, 00 + R14 000, 00 + R2 500, 00 = R34 500, 00

R34 500, 00

TOTAL ESTIMATED COST TO COUNCIL R508 800, 00

2.1.4 That it be recorded that in view of, inter alia, the fluctuating Rand, against the Euro

revised budget will be submitted to the Executive Committee.

Vote No.: 30010.10563.00005; R508 800, 00, F.C. No.: 31/064

MOTION TO AMEND

In an endeavour to curtail expenditure and in terms of Rule of Order 20(4),

Councillor SV Asbury, seconded by Councillor S Ryley, moved as a procedural

motion that the above-mentioned recommendations of the Executive Committee

be amended in 2.1.2 thereof, by the deletion of words and figures “2 Councillors

and 3 Administrative members” to read as follows:-

“2.1.2 That authority be granted for a delegation of 19 people to be sent to the

tournament comprising 16 participants and 3 technical team members”

NOT CARRIED

As not all Councillors were in support of the above-mentioned amendment, the

matter was put to the vote. With 157 Councillors present 37 Councillors

(DA - 36 and ACDP – 1) voted in favour and 98 Councillors (ANC- 96, TA – 1

and INDEPENDENT – 1) voted against. 22 Councillors (MF – 5, NFP – 6,

IFP - 9, COPE – 1 and APC – 1) abstained from voting.

The Motion to Amend was, by the majority vote, NOT CARRIED.

Discussion thereafter reverted to the substantive motion. It was advised that

although an amount of R508 800 had been submitted for approval, such amount

was insufficient due to the currency being unsustainable. Therefore in terms of

recommendation 2.1.4 above it was advised that due to the fluctuation of the

currency, an additional amount of R150 000 was required to supplement the

flights and clothing.



As not all Councillors were in agreement with the aforesaid and the

above-mentioned recommendations, the matter was put to the vote. With 153

Councillors present 95 Councillors (ANC – 92, TA – 1, COPE – 1 and

INDEPENDENT – 1) voted in favour and 58 Councillors (DA – 38, MF – 4,

NFP – 5, IFP – 9, ACDP – 1 and APC – 1) abstained from voting. There were no

Councillors who voted against the recommendation.

It was thereafter, by the majority vote,

RESOLVED:

2.1.1 That TEAM ETHEKWINI be authorized to participate in the One Nations Cup

Tournament to be held in Germany from 30 May 2016 to 04 June 2016,

the departure date being 28 May 2016 and the return date being 05 June 2016.

2.1.2 That authority be granted for a delegation of 24 people to be sent to the

tournament comprising 16 participants, 3 technical team members,

2 Councillors and 3 Administrative members.

2.1.3 That subject to .1 and .2 above, subsistence and travelling allowances for all

support members as per Council policy, be approved as follows:-

DESCRIPTION AMOUNT

1. Flights and Insurance x 19 people @ R 16 000 R 304 000, 00

2. Team Preparation Expenses i.e. Selection, training, friendly

games, camps, transport, nutritionist, snacks, water and expert

at HPC x 4 months @ R1 000, 00 per athlete x 25 athletes

R100 000, 00

3. Team uniform @ R2 500, 00 x 19

R47 500, 00

4. Visas x 19 at R1 200, 00

R22 800, 00

5.

6.

Administrative support Staff expenses:

Travel, visa and insurance @ R18 000, 00

Accommodation @ R 2 000, 00 p/n x 7 nights @ R14 000

Uniform @ R2 500, 00

R18 000, 00 + R14 000, 00 + R2 500, 00 = R34 500, 00

Contingency Amount (fluctuation of currency, etc)

R34 500, 00

R150 000,00

TOTAL ESTIMATED COST TO COUNCIL R658 800, 00

Votes : 30010.10563.00005; R508 800, 00 and 30010.10563.00004; R150 000,00;

F.C. No.: 31/064



2.2 Disruption of Fire Service Delivery : Folweni Fire Station (2/9/1/1/2):

(: Community and Emergency Services Committee - Agenda 2016-04-07)


2.2.1 That it be noted that as the situation in Folweni is life threatening for Fire Fighters to

respond to emergencies, fire service delivery is accordingly temporarily suspended.

2.2.2 That it be noted that a substantial loss has been suffered by the Municipality on

damaged and stolen assets which will be quantified once all information is obtained

and verified.

2.2.3 That it be noted that the Fire and Emergency Service Unit will resume delivery

immediately after it has been confirmed by the law enforcement and intelligence

agencies that violence has ended or reduced to tolerable life safety levels.

2.2.4 That it be noted that Fire Management has taken this decision to protect employees

and to prevent potential industrial relations conflict that may be caused by this

unfortunate situation.

2.2.5 That a Comprehensive Report regarding cost analysis of the total amount that the

refurbishments of Municipal Property/Infrastructure demolished during various

Service Delivery Protests was costing the Municipality, be compiled and submitted

to the Executive Committee.

2.2.6 That the above report should indicate the type of demolished Municipal

Property/Infrastructure and the actions that had been taken by the SAPS against the

perpetrators per different protects.

Recommendations 2.2.1, 2.2.2, 2.2.3 and 2.2.4 NOTED and Recommendations

2.2.5 and 2.2.6 ADOPTED.

2.3 Amendment to Service Level Agreement PHC Services (30/1/1/1):


The Community and Emergency Services Committee considered a report by the City

Manager dated 2016-03-02 in the above regard, the purpose of which was to appraise

Council of a change in the funding allocation of the 2015/16 Primary Health

Care Grant.


2.3.1 That the amendment of the KZN Department of Health financial provision to

eThekwini Health Unit be approved as follows:-

From the previously reported and council approved:-

PHC Grant 15/16 R75 000 000, 00 For compensation of employees

2.3.2 To the current request:-

PHC Conditional 15/16 R70 000 000, 00 For compensation of employees

PHC Conditional 15/16 R 5 000 000, 00 For purchase of essential clinic

equipment



2.3.3 That approval be granted to the City Manager to reflect the above as an adjustment as

per Section 28 (g) of the Municipal Finance Management Act.

2.3.4 That it be noted that the impact of this change on the Municipal Health Budget be

reflected as follows:-

a) The KZN Department of Health grant for the remuneration of employees be

adjusted from R75 000 000, 00 (Seventy Five Million Rand only) to

R70 000 000, 00 (Seventy Million Rand only).

b) The KZN Department of Health grant for the purchase of Clinic Capital

Equipment be adjusted from R0 (nought) to R5 000 000, 00 (Five Million

Rand only).

c) The budget of R5 000 000, 00 (Five Million Rand only) be reflected under

Operating Budget as contribution to Capital and the entry will be done post

the acquisition of assets.

d) The adjustment of the Operating Budget would reflect a deficit of

R5 000 000, 00 (Five Million Rand only) on the Unit’s Operating Budget.

2.3.5 That project authority be granted for the purchase of medical equipment as per

schedule attached to the report of the City Manager dated 2016-03-02.

ADOPTED.

2.4 Spatial Development Framework (SDF) Review 2016/2017 (21/5/1):



That the 2016/2017 Draft Spatial Development (SDF) Review, as contained in the

report of the City Manager dated 2016-03-03, be noted.

NOTED.

3. REPORT OF THE FINANCE AND PROCUREMENT COMMITTEE MEETING

HELD ON 2016-04-14

(Page R13)

3.1 Report on Investments (7/11/4):

(Page 18: Finance and Procurement Committee - Agenda 2016-04-14)


That the report on investments of the eThekwini Municipality as at 2016-02-29,

prepared and submitted by the City Manager as per his report dated 2016-03-12 and

as per the requirements of the Municipal Cash Management and Investment

Regulations of the Municipal Finance Management Act, 2003, be noted.

NOTED.



3.2 Budget Statement Report for the Month Ended 29 February 2016 (7/1/4):



That the Budget Statement Report for the month ended 2016-02-29, submitted by the

City Manager as per his report dated 2016-02-11, in compliance with Section 71 of

the Municipal Finance Management Act and in terms of Government Notice 32141

dated 17 April 2009, relating to the “Local Government: Municipal Finance

Management Act 2003, be noted.

NOTED.

3.3 Budget Statement Report for the Month Ended 31 March 2016 (7/1/4):

(Page L3 and attached as Annexure A: Finance and Procurement

Committee - Agenda 2016-04-14)


That the Budget Statement report for the period ended 2016-03-31, submitted by the

City Manager as per his report dated 2016-04-13, in compliance with Section 71 of

the Municipal Finance Management Act and in terms of Government Notice 32141

dated 17 April 2009, relating to the “Local Government: Municipal Finance

Management Act 2003, be noted.

NOTED.

3.4 Cost Containment Measures: Municipal Finance Management Act (MFMA)

Circular No. 82 (7/1/32):

(Page L2 and attached as Annexure B: Finance and Procurement



3.4.1 That in an effort to address the impact of the country’s economic challenges and the

need to contain costs, the report submitted by the City Manager dated 2016-04-04 in

compliance with Circular No. 82 of the Municipal Finance Management Act,

be noted.

3.4.2 That an assessment of the impact the Circular mentioned in .1 above has on the

budgets and operations of the Municipality be conducted by the Deputy City

Manager : Finance and be reported to the Finance and Procurement Committee.

3.4.3 That the said report and Circular No. 82 of the MFMA be considered with the

2016/17 MTREF (Multi-year budgets).

Recommendation 3.4.1 NOTED and Recommendations 3.4.2 and 3.4.3

ADOPTED.



3.5 Project Authority for the Proposed Acquisition of a Supply Chain Management

(SCM) IT System (10/2/2):

(Page 195 and attached as Annexure C: Finance and Procurement


With Councillors A Beetge, RJ Crouch, D Ganesh, S Hoosen, RD Macpherson,

AR Mitchell and J Singh of the Democratic Alliance abstaining at the Finance and

Procurement Committee,


3.5.1 That the request for Project Authority for the proposed acquisition of a Supply Chain

Management IT System, be approved

3.5.2 That subject to the adoption of .1 above, funding be provided as per the table below:-

Financial Requirements:

Capital Operating Total Capital

& Operating

Fin. Year Amount Remarks Amount Remarks Amount

2015/2016 R10 000 000.00 To be provided

from capital

savings

R2 000 000.00 To be

provided

from

operating

savings

R12 000 000.00

2016/2017 R10 000 000.00 To be provided

in budget

R11 000 000.00

To be

provided

in budget

R21 000 000. 00

R11 000 000.00 R21 000 000.00

2017/2018 R10 000 000.00

Total

Projected

Expenditure

(Excl. VAT)

R30 000 000.00 R24 000 000. 00 R54 000 000.00

VAT @ 14% R4 200 000.00 R3 360 000.00 R7 560 000. 00

Total (incl.

VAT)

R34 200 000.00 R27 360 000.00 R61 560 000.00

ADOPTED.

3.6 Report on Awards made by the City for the Month of February 2016 (9/1/3):



3.6.1 That the monthly report of the City Manager dated 2016-03-17, relative to awards

made by the City for the month of February 2016, as presented, be noted.

3.6.2 That it be noted that where the information is available for wards and registration

numbers, it is included in the report, as information used to compile the report is

taken from submissions made by the Units.



3.6.3 That the City Manager reserves the right to investigate the awards with a view to

taking disciplinary, criminal and recovery actions where willful and negligent

violation of Supply Chain Management Policies and Municipal Finance Management

Act provisions are observed.

3.6.4 That the City Manager shall table a report to the Committee relative to the

disciplinary, criminal and recovery actions taken, it being noted that the

City Manager can only respond when the reports are available.

Recommendations 3.6.1, 3.6.2 and 3.6.3 NOTED and Recommendation 3.6.4

ADOPTED.

4. REPORT OF THE ECONOMIC DEVELOPMENT AND PLANNING


(Page R168)

4.1 Durban Film Mart Programme (20/2/3):

(Page 1 : Economic Development and Planning Committee - Agenda 2016-04-15)


4.1.1 That the Head : Economic Development and Investment Promotion be duly

authorised to continue supporting the Durban FilmMart Programme for the

development, growth and competitiveness of the sector.

4.1.2 That subject to the approval of .1 above, the City Manager be authorised to conclude

a Memorandum of Agreement with the University of KwaZulu-Natal to give effect

to the above.

4.1.3 That subject to the approval of .1 and .2 above, the Head : Economic Development

and Investment promotion be duly authorised, in accordance with the Memorandum

of Agreement, to disburse the funds to the Durban International Film Festival of the

University of KwaZulu-Natal amounting to R1 700 000.00 (One Million Seven

Hundred Thousand Rand), (excl. VAT) for the 2016/2017 financial year;

R1 700 000.00, (One Million Seven Hundred Thousand Rand) (excl. VAT) for the

2017/2018 financial year; and R1 700 000. 00, (One Million Seven Hundred

Thousand Rand) (excl. VAT) for the 2018/2019 financial year, in terms of

Section 67 of the Municipal Finance Management Act, and in accordance with the

Memorandum of Agreement.

4.1.4 That the Head : Economic Development and Investment Promotion be authorised to

report progress on this initiative on an annual basis.

Vote Number Amount Year

26101.12360 R1, 700,000.00 excl VAT Provided 2016/17



FC No.: 18/50

ADOPTED.



4.2 Isipingo Local Area Plan (LAP), Functional Area Plan (FAP), and Draft Scheme

Review (21/5/1):



That the final consolidated Isipingo Local Area Plan, Functional Area Plan and Draft

Scheme Review, as contained in the report of the Acting Head: Development

Planning, Environment and Management, dated 01 March 2016, be approved.

ADOPTED.

4.3 Edamane Development Programme (20/1/6/1):



4.3.1 That the Head: Economic Development and Investment Promotion be duly

authorised to proceed with participation in the Edamane Development programme

(EDP) for the development, growth and competitiveness of the sector.

4.3.2 That subject to the approval of .1 above, the City Manager be authorised to conclude

a Memorandum of Agreement to give effect to the above.

4.3.3 That subject to the approval of .1 and .2 above, the Head : Economic Development

and Investment be duly authorised, in accordance with the Memorandum of

Agreement, to disburse the funds to the Edamane Development programme

amounting to R1 943 000.00 (One Million Nine Hundred and Forty Three Thousand

Rand) (excl. VAT) for the 2015/16 financial year, R2 945 173.00 (Two Million Nine

Hundred and Forty Five Thousand One Hundred and Seventy Three Rand)

(excl VAT) for 2016/17 and R1 500 000.00 (One Million Five Hundred Thousand

Rand) (excl. VAT) for 2017/18 in terms of Section 67 of the Municipal Finance

Management Act, and in accordance with the Memorandum of Agreement.

4.3.4 That the Head : Economic Development and investment promotion be authorised to

report progress on this initiative on an annual basis.

Vote No. Amount Year

26102.091959 R1 943 000 (excl. VAT) 2015/16

26102.091959 R2 945 173 (excl. VAT) 2016/17

26102.091959 R1 500 000(excl. VAT) 2017/18

FC No.: 18/55

ADOPTED.

4.4 Inanda-Mtshebeni Facilitation of Private Sector Development: Reconfiguration and

Construction of Municipal Service Road Erf 505 Piezangs River No. 805 (25/4/8/1):



4.4.1 That the Head : Real Estate be authorised to deviate from the supply chain

Regulations and negotiate the acquisition of a temporary and a permanent

“right-of-way” servitude, covering a period of 3-5 years, over the portion of Erf 505

of the farm Piezang Revier No. 805 as depicted in the hand plan SJ 4718/9 utilising

Section 36 (1)(a)(ii) of the municipal Supply Chain Regulations;



4.4.2 That subject to the adoption of .1 above and the approval by the Bid Adjudication

Committee pursuant to successful negotiations, the Head : real Estate be authorised

to sign the relevant agreements and all documentation necessary to effect

transfer/registration of the said servitude right to the Municipality.

4.4.3 That the City Manager record the reasons for any deviations and report it to the next

meeting of the Council and include it as a note to the annual financial statements in

terms of Section 36(2) of the Supply Management Regulations.

4.4.4 That in the event of negotiations being unsuccessful, the Head : Real Estate be

authorised to expropriate a temporary “right-of-way” servitude, covering a period of

5 years over the portion of Erf 505 of the farm Piezang Revier No. 805 as depicted in

the hand plan. SJ4718/9 and to sign all documents necessary to give effect to the

expropriation.

4.4.5 That subject to the adoption of .1 and .4 above, the City Manager be authorised to

enter into a Memorandum of Agreement whereby the Municipality secures a “public

service road” built to municipal standards or higher, over the portion of Erf 505 of

the farm Piezang Revier No. 805 as depicted in the hand plan SJ 4718/9; and the

Municipality reimburses the developer/owner, Universal Plus Trading 348 (Pty) Ltd,

to the value of R1 017 302.00 (One Million Seventeen Thousand Three Hundred and

Two Rand) (excl VAT), which is deemed equivalent to the cost the Municipality

would have incurred in constructing the “public service road” itself.

Financial details:

Project No. S1107 R837 302 excl. VAT provided 2016/17

Opex Vote R180 000excl. VAT provided 2015/16

FC No.: 18/CA53

ADOPTED.

4.5 Tertiary Institutions : Energy Efficiency Project (27/1/2/R):



That the Energy Office be authorised to incur expenditure of R200 000.00 for an

electrical assessment and business plans on Mangosuthu University of Technology

facilities, (including “accredited” private residences), R200 000.00 for an electrical

assessment and business plans on Durban University of Technology facilities

(including “accredited” private residences) and R200 000 for an awareness campaign

for all universities

Vote No. Amount Activity

31601.04720 R200 000.00 Electrical assessment and business plans for Mangosuthu

University of Technology

31601.04720 R200 000.00 Electrical assessment and business plans for University of

KwaZulu-Natal

31601.07859 R200 000.00 Electrical assessment and business plans for Durban University

of Technology

31601.09300 R200 000.00 Awareness campaigns for all universities

FC No.: 03/88

ADOPTED.



5. QUARTERLY REPORT OF THE AUDIT COMMITTEE FOR THE FIRST AND

SECOND QUARTER 2015/16 (2/10/1/1)

(Page 38)

The Executive Committee received the Audit Committee Report presented by

Ms L Mthembu, the Chairperson of the Audit Committee. The Committee was taken

through the report contained on page 38 of the EXCO agenda and the recurring

issues were noted by the Committee as well as progress in areas like Revenue

Management Services was noted.

Amongst other issues; the issues listed below were noted from the report and

discussed:-

(a) Stores and Inventory Management: It was stated that the loss of stock from

stores especially Metro Police Uniform could be related to improper record

keeping such as lack of monitoring of stock movement which made it

difficult to determine root causes.

(b) Metro Police - Vehicle Pound: Lack of Proper Fleet Management of the

public vehicles kept in the Municipal Pound and advised that proper

management and controls should be executed.

(c) Water Loss: The Committee noted that the issue of water loss had been

discussed at length with the Accounting Officer and is an ongoing item on

the Audit Committee agenda with Management having undertaken to submit

an action plan including financial consequences to the Audit Committee

Meeting on 27 May 2016.

(d) Estimated Billing Electricity: It was stated the Accounting Officer would

need to intervene and resolve prolonged billing estimates.

(e) Appointment of ICC Board Members: On conflict of interest the

Municipality had done well in appointing people with requisite skills

however the problem arose in appointing those employed in competitive

businesses. A request had been made to Management to address the matter

seriously.

(f) Establishment of a Disciplinary Board: Implementation of regulations was

being delayed due to the delayed appointment of a Disciplinary Board.

It was stated that one of the issues was homogenous implementation of

Human Resources policies and this matter had been brought to the attention

of the Audit Committee by the Accounting Officer.

(g) Supply Chain Management - End to End Review: issues were being closely

monitored and next report will indicate the positives arising from the work

undertaken thereof. The need for contract management to be centralized in

order to effectively manage the finances of the City.

h) The EPWP is in receipt of government grants however the Municipality

would need to ensure that its own funds are regulated and in sync with that

of government. That aspect was currently being addressed between Internal

Audit and Management.

(i) Estimated Billing Process: The issue of billing estimates being far from

billing issues would need to be incorporated into the budget, taking into



account that if it was not managed and controlled properly it could result in

a crisis. It was noted that Management was currently addressing the matter

with appropriate mitigating strategies in place.

(j) City Integrity and Investigation Unit (CIIU): It was stated the CIIU should

be funded in order to address the backlog. Secondly, failure of Line

Departments to implement recommendations from CIIU was noted as one of

the issues that required to be addressed.

The City Manager acknowledged the comments from the Committee and confirmed

that certain processes were already underway to address some of the findings.

Thereafter;


5.1 That the Audit Committee Report for the First and Second Quarters from October 2015

to December 2015, respectively, submitted in terms of Section 166 (2) of the Municipal

Finance Management Act No. 56 of 2003, to advise Council on the activities of the

Audit Committee and the results of its quarterly reviews of the systems of internal

control; risk management; financial management; performance and financial reporting;

organizational performance management and evaluation; internal audit function and

outcomes; fraud and corruption matters brought to the attention of the Committee, be

noted.

5.2 That the City Manager facilitates the process of getting relevant Units to address the

findings of the Audit Committee and also take into account the comments made by the

Executive Committee as recorded in points (a) to (j) above and thereafter submit to the

Executive Committee a comprehensive report on the Municipality’s interventions to

address the following findings identified, for effective monitoring and accountability

thereon:-

(a) Clean Audit

(b) Significant and material reduction of irregular expenditure

(c) Revenue Management System (RMS)

(d) ICT Governance

(e) Inventory of Applications Systems

(f) Estimated Billing Processes

(g) Performance Management

(h) Preparation of Interim Annual Financial Statements

(i) Supplier Performance and Blacklisting Processes

(j) Establishment of a Disciplinary Board (DB)

(k) Expanded Public Works Programme (EPWP)

(l) Stores and Inventory Management

(m) Supply Management – End to end audit Review

(n) Metro Police – Vehicle Pounds

(o) City Integrity and Investigations Unit (CIIU)

(p) Resolutions of Outstanding Audit Findings

(q) Medical Negligence

(r) Litigation Exposure

(s) Climate Change Impacts for the Municipality

(t) Climate Change Strategy

(u) Water Crisis/Drought

(v) Auditor General (AGSA)

(w) Risk Management Reporting



(x) Appointment of New Board Members : Inkosi Albert Luthuli ICC

(y) Institutional Arrangement between DMTP and SAAMBR

(z) ICC Shareholder Compact and Memorandum of Incorporation

ADOPTED.

6. BACK TO BASICS: QUARTERLY FINANCIAL MANAGEMENT

ASSESSMENT REPORT FOR QUARTER 2 ENDING 31 DECEMBER 2015

(2/3/2/1/2 & 11/1/2)

(Page 60)


That the eThekwini Municipality Back to Basics report for the second quarter ended

31 December 2015 for the 2015/16 financial year, submitted in compliance with the

requirements of the Provincial Department of Co-operative Governance and

Traditional Affairs, be noted.

NOTED.

7. PROPOSED NEW ETHEKWINI MUNICIPALITY REPEAL BY-LAW, 2016

(1/1/3/1/R)

(Page 80)


7.1 That the eThekwini Municipality Repeal By-law, 2016 be approved and published

for comment in Ezasegagasini Metro, Isolezwe, The Mercury Newspaper and the

City Hall Notice board for a period not less than 10 days to allow the public an

opportunity to make representations with regards to the proposed By-law; and

7.2 That should no substantive objections and representations be received from the

public, the By-law be sent back to the Executive Committee and Council for final

approval and thereafter for the By-law to be promptly sent to Ezasegagasini Metro

and the Provincial Gazette for final publication, with the By-law taking effect on a

date as prescribed therein.

ADOPTED.

8. COMMENTS ON NATIONAL POLLUTION PREVENTION PLANS

REGULATIONS AND THE DECLARATION OF GREENHOUSE GASES AS

PRIORITY AIR POLLUTANTS (1/1/2/2/R & 30/2/4/2/1/4)

(Page 98)


8.1 That the National Environmental Management comments relating to Air Quality Act,

2004 (Act No.39 of 2004): Declaration of Greenhouse Gases as Priority Air

Pollutants and National Pollution Prevention Plans Regulations: Government Gazette

No. 39678, Notice No. 39578 of 2016, dated 08 January 2016, attached in annexure

A of the report of the Deputy Head: Legal and Compliance dated 2016-02-29,

be noted and be submitted to all Support Committees for information purposes.



8.2 That subsequent to .1 above the Head: Legal Services and Compliance be authorized

to submit the comments to the National Department of Environmental Affairs.

Recommendation 8.1 NOTED and Recommendation 8.2 ADOPTED.

9. COMMENTS ON REVISION OF PRICING STRATEGY FOR WATER USE IN

TERMS OF SECTION 56(1) OF THE NATIONAL WATER ACT, 1998 (23/1/7)

(Page 112)


9.1 That the National Department of Water and Sanitation comments relating to National

Water Act, 1998(Act No.36 of 1998): Revision of the pricing strategy for water use

in terms of Section 56(1) of the National Water Act, 1998: Government Gazette

No. 1154 of 2015, dated 13 November 2015, attached in annexure A of the report of

the Deputy Head: Legal and Compliance dated 2016-02-29, be noted and be

submitted to all Support Committees for information purposes.

9.2 That subsequent to .1 above the Head: Legal Services and Compliance be authorized

to submit the comments to the National Department of Environmental Affairs.

Recommendation 9.1 NOTED and Recommendation 9.2 ADOPTED.

10. APPROVAL FOR USE OF CITY HALL AND WAIVING OF VENUE HIRE FEES

FOR WE DESIGN CONFERENCE: 22 APRIL 2016 (17/2/2/6/1)

(Page 279)


That the eThekwini Municipality supports the hosting of the WE DESIGN

Conference at the City Hall and that the venue hire fee be waived, and will benefit

the City in terms of stimulating the tourism industry, media coverage and economic

gain for the region by drawing visitors from beyond the Metro Zone, more

specifically by hosting the event at the City Hall, SAIA KZN, the WE DESIGN

Conference and event stakeholders are encouraging involvement of a spending

public in the CBD, whilst promoting greater accessibility and connectivity.

Financial Implications:

City Hall R53 215.00

ADOPTED.

11. EMERGENCY TRANSFORMER UPGRADE AND BUILDING CERTIFICATE

OF COMPLIANCE: 75 DR LANGALIBALELE DUBE STREET (21/12/2/1/R)

(Page 289)


11.1 That due to the emergency, authority be granted for the upgrade of the transformer

and issue of building certificate of Compliance at 75 Dr Langalibalele Dube Street as

contained in the technical assessment report dated 16 March 2016 and marked as

Annexure A.



11.2 That subject to the adoption of .1 above, authority be granted to the Head:

Engineering to proceed with the necessary work to commence the project.

11.3 That subject to the adoption of .1 and .2 above, authority be granted to the Head:

Engineering to use capital savings in amount of approximately R4.2 Million in the

2015/2016 financial year and any shortfalls or delays be funded through an

Adjustment Budget in the 2016/2017 financial year.

ADOPTED.

JS NXUMALO

CHAIRPERSON

___________________

(His Worship the Mayor, Councillor JS Nxumalo presented the Second Report

of the Executive Committee)

___________________

SECOND REPORT OF THE EXECUTIVE COMMITTEE (Meeting held on Tuesday, 2016-04-26)


NF Shabalala (Deputy Mayor), JN Cele, HU De Boer, SN Gumede,

ZRT Gumede, ZM Mncwango, BR Mtshali and MS Nkosi.

ABSENT : Executive Committee Members NF Shabalala (Deputy Mayor - Municipal

Business) and F Peer (Leave).

_____________

1. REPORT OF THE GOVERNANCE AND HUMAN RESOURCES COMMITTEE:

MEETING HELD ON 2016-04-22

(Page R1)

1.1 Report on Labour Relations Amendment Act Implications: Payment of Benefits to

Fixed Term Contract Employees (4/3/5/1):

(Page 69: Governance and Human Resources Committee Agenda - 2016-04-22)


That in view of the legal requirement to pay benefits to qualifying

551 (Five Hundred and Fifty One) employees in terms of the Labour Relations

Amendment Act No. 6 of 2014, the qualifying Fixed-Term Contract employees be

paid normal Municipality benefits with effect from 01 April 2015, at a cost

of approximately R23 million.




The cost of the payment of these additional benefits to the qualifying employees is

approximately R23 million, including medical aid which not all the employees will

choose to utilize.

Vote: Various, to be funded in the adjustment budget.

FC No.: 14/14

ADOPTED.

1.2 Request to Rent Parking Bays in Umlazi, Mega City (17/2/2/5/1):

(Page 606: Governance and Human Resources Committee - Agenda 2016-04-22)


1.2.1 That the report by the Head: Community Participation and Action Support dated

2016-02-08 relative to the request to rent five (5) Parking Bays in Umlazi Mega City

to be used by Community Participation and Action Support Staff for a period of three

(3) years, be approved.

1.2.2 That subject to the adoption of .1 above, authority be granted to the Head:

Community Participation and Action Support to incur parking cost at R970.00

(Nine Hundred and Seventy Rand) per month for 5 parking bays at R194.00 (One

Hundred and Ninety Four Rand) per parking bay and categorised as follows:-

1.2.2.1 Year 1 - Total of R13 204.00 (Thirteen Thousand Two Hundred and Four Rand),

including deposit and administration fee.

1.2.2.2 Year 2 - Total of R12 597.12 (Twelve Thousand Five Hundred and Ninety Seven

Rand Twelve Cents).

1.2.2.3 Year 3 - Total of R13 605.00 (Thirteen Thousand Six Hundred and Five Rand).

The escalation is 8% per annum. Below is the breakdown for costs to be incurred in

2015/2016:-

Item Number of bays Year Amount Vote No.

Deposit 1 R1 150.00

Admin Fee 1 R 390.00

Parking Fee 5 1 R11 664.00

Total R13 204.12 32302.09960

MOTION TO AMEND

In terms of Rule of Order 20(4), Councillor S Zwane, seconded by Councillor

WL Mapena, moved as a procedural motion that the above-mentioned

recommendations of the Executive Committee be amended by the addition of a

further five parking bays for the usage by Councillors who have Offices within

the building.

In that regard the Acting City Manager clarified that an amendment to the

recommendations for a further five parking bays for the usage of Councillors

had been raised at the Governance and Human Resources Committee and such

amendment had been agreed to thereat.



On that basis the above-mentioned Motion to Amend by Councillor S Zwane

was NOT CONSIDERED.

As some Councillors were not in support of the above-mentioned

recommendations of the Executive Committee, as per the amendment, the

matter was put to the vote. With 146 Councillors present, 108 Councillors

(ANC – 85, MF – 5, NFP – 6, IFP – 8, ACDP – 1, TA – 1, COPE – 1 and

INDEPENDENT – 1) voted in favour and 38 Democratic Alliance Councillors

voted against. There were no abstentions recorded.

It was therefore, by the majority vote,

RESOLVED:

1.2.1 That the request to rent five (5) Parking Bays in Umlazi Mega City for a period

of three (3) years, submitted by the Head: Community Participation and Action

Support in his report dated 2016-02-08, and subsequently amended at the

Governance and Human Resources Committee, by the addition of a further five

(5) Parking Bays, to a total of ten (10) Parking Bays, for use by Officials and

Councillors, be approved.

1.2.2 That subject to the adoption of .1 above, authority be granted to the Head:

Community Participation and Action Support to incur parking cost at R970.00

(Nine Hundred and Seventy Rand) per month for ten (10) parking bays at

R194.00 (One Hundred and Ninety Four Rand) per parking bay and

categorised as follows:-

1.2.2.1 Year 1 - Total of R26 018.00 (Twenty Six Thousand and Eighteen Rand),

including deposit and administration fee.

1.2.2.2 Year 2 - Total of R25 194.00 (Twenty Five Thousand One Hundred and Ninety

Four Rand).

1.2.2.3 Year 3 - Total of R27 210.00 (Twenty Seven Thousand Two Hundred and Ten

Rand).

The escalation is 8% per annum. Below is the breakdown for costs to be

incurred in 2015/2016:-

Item Number of bays Year Amount Vote No.

Deposit 1 R 2 300.00

Admin Fee 1 R 390.00

Parking Fee 10 1 R23328.00

Total R26 018.00 32302.09960

1.3 Councillors Assisted Education Policy (3/5/12):

(Page 607: Governance and Human Resources Committee - Agenda 2016-04-22)

The Executive Committee Member De Boer recorded his abstention on this matter

on the basis that Councillors should fund their own education. It being noted that the

Councillors Assisted Education Policy is in line with the City's objectives to

capacitate leadership,




1.3.1 That the report by the Head: eThekwini Municipal Academy dated 2016-04-06

relative to the Councillors Assisted Education Policy, be approved.

1.3.2 That subject to adoption of .1 above, authority be granted to the Head: eThekwini

Municipal Academy to implement the Councillors Assisted Education Policy as

contained in his report dated 2016-04-06.

1.3.3 That, given the end of Councillors term of office, the fees for Councillors who are

currently studying in 2016 be paid for by Council.

REFERENCE BACK

In terms of Rule of Order 20(1)(c), Councillor ZM Mncwango, seconded by

Councillor HU De Boer, moved as a procedural motion that the

above-mentioned recommendations of the Executive Committee be REFERRED

BACK to that Committee to enable further deliberations to be undertaken and

input from all Councillors to be obtained.

NOT CARRIED

As some members were not in support of the above-mentioned motion to refer

back on the basis that the issue had been considered by the Governance and

Human Resources Committee in November 2015 and consideration thereof had

had been deferred to enable the matter to be considered by the various

Caucuses in the first instance. Further it was advised, inter-alia, that there was

no requirement for internal policies to undergo a public consultation process.

The matter was therefore put to the vote. With 152 Councillors present,

44 Councillors (DA – 38 and NFP – 6) voted in favour and 100 Councillors

(ANC - 91, MF – 5, ACDP – 1, COPE – 1, APC - 1 and INDEPENDENT - 1)

voted against. 8 IFP Councillors abstained from voting.

The motion to refer back was NOT CARRIED.

Discussion thereafter reverted to the substantive motion and as some

Councillors were not in support thereof, the matter was put to the vote. With

154 Councillors present, 115 Councillors (ANC - 93, MF – 4, NFP – 5, IFP – 8,

ACDP – 1, TA – 1, COPE – 1, APC - 1 and INDEPENDENT - 1) voted in favour

and 39 DA Councillors voted against. There were no abstentions recorded.

The above recommendations of the Executive Committee were, by the majority

vote, ADOPTED.

2. NOTING OF RULE OF ORDER 28: REQUEST FOR FINANCIAL ASSISTANCE

TOWARDS THE BURIAL OF THE LATE COUNCILLOR NTOMBIZODWA

PRINCESS SIBIYA (3/5/15)

(Page 7)

Condolences were once again extended for the loss of Councillor NP Sibiya.

Thereafter, the importance of reviewing the Civic Funeral Policy was reiterated in

order to achieve certainty and consistency in the manner in which to allocate

financial assistance in the event of the loss of a Councillor.



It was acknowledged that raising the issue of the policy in the midst of family

bereavement is insensitive, hence, the urgent need to finalise policy review.

Confirmation was then given that the review process has commenced and that draft

policy would be submitted for consideration by the relevant Council structures until

submitted for final adoption at Council level.


That, in line with the requirements of the Civic Funeral Policy, the approval given by

His Worship the Mayor, in terms of Rule of Order 28, to allocate an amount of

R100 000.00 (One Hundred Thousand Rand) for the burial of the late eThekwini

Municipal Councillor Ntombizodwa Princess Sibiya who served as a PR Councillor

deployed in Ward 66; a member of eThekwini Council from June 2009 and;

contributed significantly in community development within eThekwini Municipality,

be noted.

(Vote: 32123.05156; R100 000.00)

It having being noted that the Civic Funeral Policy was in the process of being

reviewed, the above-mentioned recommendation of the Executive Committee

was NOTED.

3. BACK TO BASICS REPORT FOR THE MONTH ENDED 31 MARCH 2016

(2/3/2/1/2)

(Page 9)

With the Back to Basics report also monitoring the filling of positions of Section 56

Managers, it was requested to finalise the appointment of 3 incumbents to fill vacant

positions in this regard. It was then confirmed that 1 position will be filled and that

the other 2 positions will be re-advertised. On the issue of service delivery, the

attention was drawn to an urgent need to fix water leak at KwaMashu Community

Residential Unit which is causing excessive water loss. This was noted.


That the Back-to-Basics report outlining progress by the eThekwini Municipality in

achieving its performance indicators during the month ended 31 March 2016,

compiled as per the requirement in terms of Circular No. 47 of 2014 from the

Department of Co-operative Governance and Traditional Affairs, with a view to

analysing the state of local governance and make informed assessment to support and

intervene where required, be noted.

NOTED.

4. PROVINCIAL BACK TO BASICS REPORT FOR QUARTER 3 OF 2015/16

(2/3/2/1/2 & 11/1/2)

(Page 26)


That the eThekwini Municipality Back to Basics report for the third quarter of the

2015/16 financial year, submitted in compliance with Circular No. 3 of 2016 from



the Provincial Department of Co-operative Governance and Traditional Affairs, and

for use to measure progress of the Municipality against the five pillars of the Back to

Basics programme, the main functions and mandate of the Municipality to allocate

appropriate score in this regard, be noted.

NOTED.

5. LEASE OF LAND: HOY PARK MANAGEMENT (PTY) LTD: MASABALALA

YENGWA AVENUE/SMISO NKWANYANA ROAD/JACKO JACKSON DRIVE

(17/2/1/2/5)

(Page 38)

In line with the Council resolution of 28 October 2015, the Accounting Officer has

conducted a public participation process for a period of 30 days, in terms of

Regulation 34(3)(b) and Regulation 35 of the Municipal Asset Transfer Regulations,

in respect of granting a right of use of the capital assets described as Rem of Erf 1;

Erf 11577; Rem of Erf 11578; and Erf 11579, all of Durban, for the development of

a Sports Academy.

Confirmation was given that the Municipality has achieved all compliance

requirements necessary for the development of the Sports Academy. That both

Provincial and National Treasury have no objections to the Sports Academy provided

all necessary processes have been complied with as per the relevant Regulations.

With regard to the objections received from the existing occupants and their

supporters, mention was made that the Municipality has acted in the best interest of

sports development within the City to handle issues relating to the Sports Academy.

The Democratic Alliance dissented on this matter on the basis that a correct process

has not been followed to deal with the objections from the existing occupants and

suggested the establishment of a dedicated Task Team for this purpose.

With the other parties being in agreement that all necessary processes have been

complied with and noting the report given on illegal activities currently being

conducted by some of the occupants and the non-payment of rent since 2010,


That notwithstanding the objections lodged, the eThekwini Municipal Council

resolution dated 2014-10-30, relative to the granting of a right to use the capital

assets described as Rem of Erf 1; Erf 11577; Rem of Erf 11578 and; Erf 11579, all of

Durban, to Hoy Park Management (Pty) Ltd for the development of a Sports

Academy, be reaffirmed.

As some Councillors were not in support of the above recommendations of the

Executive Committee, the matter was put to the vote. With 153 Councillors

present, 115 Councillors (ANC - 93, MF – 4, NFP – 5, IFP – 8, ACDP – 1,

TA - 1, COPE – 1, APC - 1 and INDEPENDENT - 1) voted in favour and

38 DA Councillors voted against. There were no abstentions recorded.

The above recommendations of the Executive Committee were, by the majority

vote, ADOPTED.



6. RENEWAL OF THE MEMORANDUM OF UNDERSTANDING BETWEEN

ETHEKWINI MUNICIPALITY AND KWAZULU-NATAL DEPARTMENT OF

EDUCATION (12/8/1)

(Page 82)

The Executive Committee supported the renewal of the Memorandum of

Understanding (MOU) with the Department of Education. For effective assessment

of the benefits associated therewith, it was agreed that a report outlining

achievements in terms of the past MOU be submitted to the Executive Committee.

On this basis,


6.1 That authority be granted for the City Manager to facilitate the renewal of a

Memorandum of Understanding (MOU) between eThekwini Municipality and

KwaZulu-Natal Department of Education to improve information sharing; skills

exchange; and service delivery within the province and the South Africa at large,

with the MOU to commence upon the last signature by any of the parties.

6.2 That the MOU be reviewable every 3 (Three) years or a period earlier if a need

arises, it being noted that either party may terminate the MOU by giving a written

notice of 6 (Six) Calendar months and with steps being taken to ensure that the

termination does not affect any prior obligations, project or activity already

in progress.

ADOPTED.

7. MEMORANDUM OF UNDERSTANDING BETWEEN ETHEKWINI

MUNICIPALITY AND EMNAMBITHI LADYSMITH MUNICIPALITY (12/8/1/1)

(Page 98)

In noting that eThekwini Municipality has sister Cities relations at an international

level, it was considered important to extend this and strengthen governance at a local

level. The signing of a Memorandum of Understanding with Emnambithi Ladysmith

Municipality was therefore supported.


7.1 That authority be granted for the City Manager to facilitate entering and signing of a

Memorandum of Understanding (MOU) between the eThekwini Municipality and

the Emnambithi Ladysmith Municipality to take effect upon the date of last signature

by any of the parties and the MOU to last for the duration of 5 (Five) years, unless

otherwise agreed to in writing by the parties, with the areas of co-operation to

include but not limited to the following:-

(i) Basic Service Delivery and Infrastructure;

(ii) Local Economic Development and Tourism;

(iii) Municipal Transformation and Institutional Development;

(iv) Municipal Financial Viability;

(v) Good Governance and Community Participation;

(vi) Best Practice;

(vii) Customer Care; and

(viii) Strategic Planning.

7.2 That the MOU be extended by written agreement between the parties and that any

party may terminate this by giving 3 (Three) months written notice without being



liable for costs and/or damages incurred by the other party as a result of the said

termination.

ADOPTED.

JS NXUMALO

CHAIRPERSON ___________________

(His Worship the Mayor, Councillor JS Nxumalo presented the Third Report of

the Executive Committee) ___________________

THIRD REPORT OF THE EXECUTIVE COMMITTEE (Special Meeting held on Wednesday, 2016-05-04)


NF Shabalala (Deputy Mayor), JN Cele, HU De Boer, ZRT Gumede,

ZM Mncwango, BR Mtshali, MS Nkosi and F Peer.

ABSENT : Executive Committee Member SN Gumede (Leave).

_____________

1. REQUEST FOR AUTHORITY FOR HIS WORSHIP THE MAYOR TO

PARTICIPATE IN THE UNITED CITIES FOR LOCAL GOVERNMENT

COMMITTEE MEETINGS, 25-28 MAY 2016, KAZAN, RUSSIA

(Page 1)

The United Cities and Local Government (UCLG) is the umbrella organization of all

local governments in the world and the only recognized voice of cities, towns and

local government associations. EThekwini Municipality plays a critical role in this

structure with His Worship the Mayor being the Co-Chair of the UCLG Urban

Strategic Planning Committee and the member of the decision-making Finance

Committee which has political oversight over the financial management of the

UCLG. Senior officials of eThekwini also drive certain activities of the UCLG and

will provide progress reports in the forthcoming UCLG Committee meetings.

Given the significance of the UCLG Committee meetings the participation of

eThekwini Municipality is of utmost importance, therefore,


1.1 That authority be granted for His Worship the Mayor, Councillor James Nxumalo or

His nominee to participate in the United Cities for Local Government (UCLG)

Committee Meetings on 25 to 28 May 2016 at Kazan in Russia, to make contribution

in his capacity as the Co-Chair of the Urban Strategic Planning Committee and the

member of the UCLG Finance Committee.



1.2 That, it be noted the Head: Intergovernmental Relations is attending the UCLG

Committee meetings to provide content and logistical support for His Worship the

Mayor in preparation for Habitat 3.

1.3 That, it be noted the Chief Strategy Officer is attending to provide input at the Urban

Strategic Planning (USP) Committee.

1.4 That, it be noted the Senior Manager: MILE is attending to provide an update at the

UCLG USP meeting on the City to City Learning agenda, and continue to champion

this work on behalf of the USP Committee, it being recorded that flight and

accommodation costs will be borne by the UCLG since the Senior Manager: MILE

has been tasked by UCLG to facilitate the process.


NAME FLIGHTS ACCOMM

ODATION

VISA S & T VOTE NUMBER

His Worship the

Mayor

R18 000.00 R7 500.00 R1 200.00 As per policy 32111.11960

Head:

Intergovernment

al Relations

R18 000.00 R7 500.00 R1 200.00 As per policy 12749.11900

Chief Strategy

Officer

R18 000.00 R7 500.00 R1 200.00 As per policy 30020.11960

Official 1

(MILE)

Covered by

UCLG

Covered by

UCLG

R1 200.00 As per policy 12810.11960

Recommendation 1.1 ADOPTED and Recommendations 1.2, 1.3 and 1.4

NOTED.

2. REQUEST TO AUTHORISE FUNDING AND PARTICIPATION OF WARWICK

TRADITIONAL HERB TRADERS MARKET IN VENICE BIENNALE

EXHIBITION, 25 MAY-27 NOVEMBER 2016, VENICE, ITALY (35/1/1/4)

(Page 6)

The Committee shared a unanimous view that tangible benefits should be seen as a

result of the forthcoming exhibition to uplift the Traditional Herb business

economically. Also, that the City should derive return on its investment by having

right to utilize exhibition designs. With the assistance of the Head: Legal and

Compliance recommendation 2.1 has been amended to protect the interest of both the

Traditional Herb business and the City.


2.1 That Council approves financial commitment in the amount of R450 000.00

(Four Hundred and Fifty Thousand Rand), excluding VAT, to be given to Design

Workshop SA for the development of Exhibition on the eThekwini Municipality

Herb Traders Market at the 2016 Venice Biennale in Italy, subject to the following:

2.1.1 The ownership of the model and video footage will vest in the Municipality.

2.1.2 The interest of the Herb Traders be protected.



2.2 That subject to the approval of .1 above, the City Manager be authorized to conclude

a Memorandum of Agreement with Design Workshop SA to give effect to .1 above.

2.3 That subject to the approval of .1 and .2 above, the eThekwini Municipality be duly

authorized, in accordance with the Memorandum of Agreement, to disburse funds to

Design Workshop SA.

Vote No.: 15522.05940 R250 000.00 FC No.: 34/293

Vote No.: 47111.09300 R200 000.00 FC No.: 47/014

ADOPTED.

3. SERVICE DELIVERY AND BUDGET IMPLEMENTATION PLAN AS AT

31 MARCH 2016 (2/10/1/1/9)

(Page 6)


3.1 That, in terms of Circular No. 13 of the Municipal Finance Management Act, the

Service Delivery and Budget Implementation Plan Report for the quarter ended

31 March 2016, which reflects the overall performance achievement of 76% by the

City, be adopted.

3.2 That the Service Delivery and Budget Implementation Plan Report be submitted to

the respective Support Committees for effective oversight.

ADOPTED.

JS NXUMALO

CHAIRPERSON

_____________________

FIRST REPORT OF THE ETHICS COMMITTEE

(Special meeting held on 2016-04-21)

PRESENT : Councillors WL Mapena (Chairperson), NL Graham, TJ Gumede, S Hoosen,

MQ Magwaza, LM Mhlong -Ntaka, DF Mncwabe, VOO Qulo and PS Sishange.

______________

PROGRESS REPORT : ALLEGED MISCONDUCT BY DEMOCRATIC ALLIANCE COUNCILLORS DURING COUNCIL ON 1ST OCTOBER 2014, AT DURBAN, CITY HALL (3/5/1)

1. INTRODUCTION

“The men who does not rejoice in noble actions is not even good, since no one would

call a man just who did not enjoy acting justly.” Nicomachean Ethics, Aristotle.

It is therefore imperative that as Councillors we act in a noble way. It is also

important that we act in a just way. In acting in a noble and just manner will result in

us upholding the dignity and integrity of the office we represent as Councillors.



“In your life's blueprint you must have as the basic principle the determination to

achieve excellence in your various fields of endeavor.” Martin Luther King Jr.

2. BACKGROUND

2.1 On 2015-02-25, Council, by majority vote, adopted the following recommendations

of the Ethics Committee:-

“2.1 That Council grants authority to the firm of Attorneys duly appointed to

proceed with the case of the Inkatha Freedom Party (IFP) to investigate the

alleged breach of the Code of Conduct of the Democratic Alliance (DA).

2.2 That Council grants authority for the required Supply Chain Management

process to unfold in respect of .1 above.

2.3 That it be noted that the appointed firm of Attorneys will submit its report

on their findings to the Ethics Committee for submission to Council.

2.4 That the matter involving the alleged breach of the Code of Conduct by the

Democratic Alliance be concluded within a period of three months.”

3. HEARINGS

3.1 A Disciplinary Enquiry in respect of the Alleged Misconduct by Democratic Alliance

Councillors during Council on 1st October 2014 at Durban, City Hall proceeded on

2015-10-22. A ‘Request for further Particulars’ was subsequently tabled by Advocate

N Lange (representing the Democratic Alliance Councillors) thereby drawing the

Committee’s attention to certain documents from the bundle previously distributed,

was not in her possession and for the acquiring of same. The meeting was taken

through the respective Points in Limine during which it was established there were

numerous matters which needed to be attended to.

3.2 Having afforded both the Parties an opportunity to present their cases, the

Chairperson ruled that it was unsatisfactory that the matter did not proceed, however

given the extent of the ‘Request for further Particulars’, in particular, the Points in

Limine, it was felt that more time was required for the Parties to respond to matters.

He submitted that the above Enquiry was not in a position to be finalised, hence was

inappropriate at this stage to express any firm or final conclusions. He nevertheless

expressed the view that the said matter was rather disconcerting as it was unable to

proceed given the fact that there was a Point in Limine which appeared to be relying

on Council having instructed the Parties to conclude the Inquiry within a three (3)

month period. In noting that there was a previous adjournment in the instance of

Council, it was felt that this adjournment of Hearing was at the instance of

Councillors, hence was inclined at that level to grant the adjournment of Inquiry.

3.3 Accordingly, the above Inquiry was postponed sine die to allow for the Parties to

agree on a timeframe with a view to having the said matter concluded. Furthermore,

the Parties was to reach consensus by preparing written submissions, it being noted

that subject to the finalisation of the aforementioned submissions, the said matter be

set down to enable a further hearing.

3.4 During the month of February 2016, a ‘Request for further Particulars’ had been

received from the Democratic Alliance Councillors Attorneys advising that it was not

possible for the Democratic Alliance Councillors to identify the specific Act or

Conduct during which the Municipality proposed to investigate at the Disciplinary



Enquiry and for the said Councillors to prepare for the Disciplinary Enquiry. It had

been requested that the Municipality make available copies of documents that were

omitted from the bundle of documents during which accompanied the Applicant’s

Notice of Set Down. On 2016-02-12, the requested information was made available

to the Democratic Alliance Councillors Attorneys’, hence a further extension of time

was required by the above Attorneys to prepare their Points in Limine.

3.5 On 2016-02-29, a Ruling had been received from the Chairperson. In his submission,

he ruled that the debate concerning the materiality and timing of the ‘Request for

further Particulars’ had been overtaken by time. Furthermore, he indicated that the

debate which ensued consisted of interrogatories/request for admissions whereas the

remaining matters constituted that of a request for documents. On that basis, he was

disinclined to order the delivery of further Particulars. He indicated that from the

documents submitted to him, most matters had been responded to by the respective

Parties.

3.6 In commenting on the first Point in Limine relating to insufficient Notice, he ruled

that such had been overtaken by subsequent events, hence was not necessary to issue

any ruling regarding this matter.

3.7 Regarding the second Point in Limine, he ruled that such had been directed at the

competence of the Ethics Committee to pursue the charges beyond the timeline

recommended by full Council. Therefore, the charge against the Democratic Alliance

Councillors could not depend upon the timeline set by full Council for its validity.

He confirmed that such would arise ex lege. He further submitted that the authority

of the Ethics Committee could not be determined by reference to time limits unless

such limitation had been imposed by Law. He nevertheless advised that the

Regulatory Legislation did not impose a limitation. In this regard, he further ruled

that the hearing could not be terminated solely as the Ethics Committee did not bring

the proceedings to an end within the three month period.

3.8 With regard to the third and last Point in Limine, he indicated that such was not

properly speaking a preliminary issue which was capable of limiting or terminating

the proceedings, hence felt that there was something inherent about a “Point in

Limine”. On that basis, he made no ruling in relation to this issue.

3.9 He further ruled that the said matter must be brought to finality within the next few

weeks and the Parties concerned were requested to finalise all questions relating to

the Request and supply of particularity. He requested the Parties to set the said matter

down for hearing within a period of 14 days after the expiry of the period mentioned

herein.

3.10 An Inquiry in respect of the Alleged Misconduct by Democratic Alliance Councillors

during Council on 1st October 2014 at Durban, City Hall, re-convened on the 7th and

8th of April 2016 respectively. Having commenced with the leading of evidence with

the Speaker and in view of time constraints to continue with the hearing, the meeting

noted that a period of two (2) days was insufficient to conclude the above matter.

A proposal was raised that a period of four (4) days be set aside to finalise the said

hearing. The meeting was thereafter adjourned to 2016-04-08 whereby the Parties

present indicated their unavailability for the month of May 2016 to continue with

proceedings. Accordingly, it was agreed by majority present, that the said hearings

be adjourned to the 27th, 28th and 29th of June respectively.

On that basis,




3.10.1 That given the request by the Democratic Alliance Councillors to postpone the said

hearings to the 27th, 28th & 29th of June 2016, Council rectifies the decision of the

Ethics Committee as adopted on 2015-02-25.

3.10.2 That in light of 3.10.1 above, authority be granted to the appointed firm of Attorneys,

A.P. Shangase & Associates on behalf of the Ethics Committee to continue with the

aforementioned hearing involving the Alleged Misconduct by Democratic Alliance

Councillors during Council on 1st October 2014 at Durban, City Hall, until such time

finality had been attained.

3.10.3 That should the matter relative to the Alleged Misconduct by Democratic Alliance

Councillors during Council on 1st October 2014 at Durban, City Hall, be not

concluded within the current term of Office, the said matter be re-submitted to the

newly elected Council for consideration.

4. APPROVAL OF THE FIRST REPORT OF THE ETHICS COMMITTEE:

MEETING HELD ON 2016-04-19


That the Report of the Ethics Committee relative to the Alleged Misconduct by

Democratic Alliance Councillors during Council on 1st October 2014 at Durban,

City Hall, be adopted and a copy thereof, be submitted to the MEC for Co-operative

Governance and Traditional Affairs for information.

WL MAPENA

CHAIRPERSON

In view of the imminent Local Government Elections and, following a response

by the Head : Legal Services and Compliance to the question raised by

Councillor WL Mapena that matters could not be carried over to the newly

elected Council for consideration, but would need to be finalised by this

Council’s term of Office, the recommendations contained in the First Report of

the Ethics Committee were withdrawn and referred back to that Committee.

___________________



SECOND REPORT OF THE ETHICS COMMITTEE

(Special meeting held on 2016-04-21)

PRESENT : Councillors WL Mapena (Chairperson) NL Graham, TJ Gumede, S Hoosen,

MQ Magwaza, LM Mhlongo-Ntaka, DF Mncwabe, VOO Qulo and PS Sishange.

_____________

AUDITOR-GENERAL, 2013/2014 ANNUAL REPORT : FINDINGS AND RECOMMENDATIONS IN RESPECT OF:- (a) ALLEGED FAILURE TO OBTAIN A REQUISITE CONSENT TO CONDUCT

BUSINESS : COUNCILLOR S NAIDOO : INV174/03/2015 (3/5/1) AND; (b) ALLEGED FAILURE TO DECLARE A CLOSE FAMILY MEMBER HAVING

INTEREST WITH THE MUNICIPALITY : COUNCILLOR P MFEKA: INV233/04/2015 (3/5/1)

Hearing in respect of Councillor S Naidoo for the alleged breach in conducting business with

an Organ of State.

1. INTRODUCTION

“And there are three dimensions of any complete life to which we can fitly give the

words of this text: length, breadth, and height. Now the length of life as we shall use

it here is the inward concern for one’s own welfare. In other words, it is that inward

concern that causes one to push forward, to achieve his own goals and ambitions.

The breadth of life as we shall use it here is the outward concern for the welfare of

others. And the height of life is the upward reach for God. Now you got to have all

three of these to have a complete life.” Martin Luther King Jr, 09 April, 1967.

I would apply this “three dimensions of any complete life” concept to leadership. I

am of the view that there should be three dimensions to leadership conduct or

behavior: Moral, Ethical and Integrity. Leaders should espouse to have the moral

courage to distinguish between what is good and what is not good. Leaders should at

all-times strive to uphold ethical conduct and leaders should exude qualities of being

honest and having strong value principles.

“Virtue, then, being of two kinds, intellectual and moral, intellectual virtue in the

main owes both its birth and its growth to teaching (for which reason it requires

experience and time), while moral virtue comes about as a result of habit.” Aristotle,

Nicomachean Ethics, Book 2

2. BACKGROUND

On 2015-02-12, the Municipal Public Accounts Committee (MPAC) received a list

of audit findings from the 2013/2014 Auditor-General’s Report in relation to possible

non-compliance for the conducting business with an Organ of State and the failure to

complete, sign and submit Declaration of Interest forms to declare their interest and

connection in Suppliers of other State Institutions.

On 2016-03-03, the Ethics Committee received a report from the Speaker relating to

the possible non-compliance of the Code by Councillor S Naidoo. The Ethics



Committee therefore resolved to conduct its hearings on 2016-04-19 in dealing with

the alleged non-compliance of the Code of Conduct for Councillors.

3. HEARINGS

The Hearing was held pursuant to Schedule 1, Section 6(4) of the Local

Government : Municipal Systems Act 32 of 2000.

The Ethics Committee wishes to record that at the outset, it applied the principles of

natural justice that espouses the values that:-

(a) There is a formal procedure;

(b) There is a just and fair procedure;

(c) The presumption of innocent until proven guilty; and

(d) The principle of audi alteram partem rule;

(e) The right to appeal.

4. ALLEGED FAILURE TO OBTAIN A REQUISITE CONSENT TO CONDUCT BUSINESS : COUNCILLOR S NAIDOO

4.1 Breach One

Lighthouse Procurement Service CC, a Close Corporation of which Councillor

Naidoo is member of, allegedly conducted business with KwaDukuza Municipality

during the 2013/2014 financial year to the value of R20 000 (Twenty Thousand

Rand) per annum is in contravention of Schedule 1, Section 6(4) of the Local


4.1.1 Plea on Breach by Councillor Sadaishum Naidoo

In plea to the allegations that he allegedly conducted business with an Organ of State,

Councillor Naidoo pleaded NOT GUILTY.

Legislation

Municipal Systems Act 32 of 2000

Schedule 1, Section 6(4)(a) of the Local Government : Municipal Systems Act 32 of

2000 stipulates that:-

“Except with the prior consent of the Municipal Council, a Councillor may not -

(a) be a party to or beneficiary under a contract for -

(i) the provision of goods and services to the Municipality; or

(ii) the performance of any work otherwise than as a Councillor for the

Municipality.”

Schedule 1, Section 6(4)(b) of the Local Government : Municipal Systems Act 32 of

2000 stipulates that:-

“Except with the prior consent of the Municipal Council, a Councillor may not -

(b) obtain a financial interest in any business of the Municipality; or



4.1.2 Evidence in support of Plea

In support of plea of not guilty, Councillor Sadaishum Naidoo informed the meeting

that he did declare his Company at the beginning of the term of Office. He clarified

that his Company was established prior to him becoming a Councillor, he owned

50% of shares in the said Company and was a member of the Company. He further

clarified that his spouse also owned 50% of shares in the Company. Regarding

financial benefit, he submitted that he received an amount of R20 000 (Twenty

Thousand Rand) monthly from the company called Cargo Dynamics. However, he

advised that although funds were due to him monthly, he was not in receipt of such.

4.1.3 Factors taken into consideration in taking the matter forward

During proceedings, it became apparent that the evidence before the Committee was

inconclusive as the information provided was incomplete and needed to be revisited.

The Evidence Leader drew the Committee’s attention to the omissions contained in

the supporting documents. She informed the meeting that it was not feasible to

continue with the said proceedings without requisite information. In order to allow

for a fair process of hearing to Councillor Naidoo and to enable her to make

appropriate recommendations to the Committee, she requested that the hearing be

adjourned indefinitely.

Having noted the oversight of information by the City Integrity & Investigations

Unit, the Evidence Leader then requested that the said matter to be adjourned.

Accordingly,


4.1.3.1 That the hearing involving the alleged failure to obtain a requisite consent to conduct

business with KwaDukuza Municipality by Councillor S Naidoo, be adjourned

indefinitely to enable the Ethics Committee to acquire further evidence on the said

matter.

4.1.3.2 That Council grants authority to the Head : City Integrity & Investigations Unit to

obtain further information relating to the alleged failure to obtain requisite consent to

conduct business with KwaDukuza Municipality by Councillor S Naidoo.

_____________

ALLEGED FAILURE TO DECLARE A CLOSE FAMILY MEMBER HAVING INTEREST WITH THE MUNICIPALITY : COUNCILLOR PATRICK MFEKA

Hearing in respect of Councillor P Mfeka for the alleged breach in having failed to declare a

Close Family Member having interest with the Municipality.

1. INTRODUCTION

“And there are three dimensions of any complete life to which we can fitly give the

words of this text: length, breadth, and height. Now the length of life as we shall use

it here is the inward concern for one’s own welfare. In other words, it is that inward



concern that causes one to push forward, to achieve his own goals and ambitions.

The breath of life as we shall use it here is the outward concern for the welfare of

others. And the height of life is the upward reach for God. Now you got to have all

three of these to have a complete life.” Martin Luther King Jr, 09 April, 1967.

I would apply this “three dimensions of any complete life” concept to leadership.

I am of the view that there should be three dimensions to leadership conduct or

behavior: Moral, Ethical and Integrity. Leaders should espouse to have the moral

courage to distinguish between what is good and what is not good. Leaders should at

all-times strive to uphold ethical conduct and leaders should exude qualities of being

honest and having strong value principles.

“Virtue, then, being of two kinds, intellectual and moral, intellectual virtue in the

main owes both its birth and its growth to teaching (for which reason it requires

experience and time), while moral virtue comes about as a result of habit.” Aristotle,

Nicomachean Ethics, Book 2

2. BACKGROUND

Arising from 2013/2014 Auditor-General’s Report, it was established that there was

non-compliance of the Code by Councillors for failure to submit declarations for

which their close family members had an interest in.

Council will recall that the above matter served before the Blacklisting Committee

on 2016-02-11 wherein it was resolved “that relevant processes to blacklist

Councillor Mfeka for failure to declare a close family member having interest with

the Municipality unfold and that relevant information be cascaded to the respective

financial systems/website listing of Blacklisting Entities and onward transmission to

National Treasury.”

In noting that the Ethics Committee is tasked with the responsibility to hear and

adjudicate on matters relating to Councillors in breach of the Code of Conduct, the

above matter did not appear before the Ethics Committee in the first instance to

allow for an Enquiry to be made and to report to Council on its findings.

In view of the Blacklisting Committee’s decision to proceed with the blacklisting of

Councillor Mfeka, Council granted authority on 2016-02-25 for the said matter to be

held in abeyance until such time the Ethics Committee had considered the alleged

breach involving Councillor Mfeka and to report back to Council within a period of

three (3) months from the adoption of the Ethics Committee Report.

On 2016-03-03, the Ethics Committee received a report from the Speaker relating to

the alleged breach for failure to declare a close family member having interest with

the Municipality by Councillor P Mfeka. Accordingly, the Ethics Committee

resolved to conduct an Enquiry relating to Councillor Mfeka’s matter on 2016-04-19,

to rule on the matter and to make appropriate recommendations to Council based on

its findings.



3. HEARINGS

The Hearing was held pursuant to Schedule 1, Section 5(2)(a)(i) and (ii) of the Local


The Ethics Committee wishes to record that at the outset, it applied the principles of

natural justice that espouses the values that:-

(a) There is a formal procedure;

(b) There is a just and fair procedure;

(c) The presumption of innocent until proven guilty; and

(d) The principle of audi alteram partem rule;

(e) The right to appeal.

4. ALLEGATIONS IN RESPECT OF COUNCILLOR PATRICK MFEKA

4.1 Breach One

It is alleged that Councillor Patrick Mfeka failed to disclose his spouse’s business

dealings with the Municipality. His spouse, Mrs Ignatia Nonhlanhla Ngubane, being

a sole member of Nzungwane Trading cc, engaged in business with the Municipality

during the 2013/2014 financial year and had derived financial benefits. Accordingly,

it was established that Councillor Mfeka and his spouse were members of the same

household.

4.1.1 Plea on Breach by Councillor Patrick Mfeka

In plea to the allegations that he failed to disclose his spouse’s business dealings with

the Municipality, Councillor P Mfeka pleaded NOT GUILTY.

Legislation

Municipal Systems Act 32 of 2000

Schedule 1 of the Code of Conduct for Councillors and Schedule 5(2) of the Local

Government : Municipal Systems Act 32 of 2000 stipulates that:-

“A Councillor who, or whose spouse, partner, business associate or close

family member, acquired or stands to acquire any direct benefit from any

contract concluded with the Municipality, must disclose full particulars of the

benefit of which the Councillor is aware at the first meeting of the Municipal

Council at which it is possible for the Councillor to make the disclosure.”

4.1.2 Submission by Councillor P Mfeka

Councillor Mfeka informed the Committee that he declared his personal interests

with the Municipality in 2011, however did not have any business dealings with the

Municipality at that point in time and was unaware of any business dealings that his

spouse had with the Municipality. The Councillor indicated to the Committee that his

name had been announced from a report at a Council meeting indicating that he was

one of the Councillors who was implicated in doing business with the Municipality.

He stated that had he been aware of his spouse having business dealings with the

Municipality, he would have declared. He mentioned that he did not peruse his

spouse’s business dealings as he was unaware of such. However, he only became



aware that his spouse had business dealings with the Municipality when his name

was read out at the Council meeting.

He submitted that upon enquiry from his spouse regarding her business dealings with

the Municipality, she informed him that she had declared her business and thereafter

afforded him an opportunity to peruse her documents. He further submitted that his

spouse had declared that she had a relative in the employ of the Municipality. He

also provided the Committee with a copy of the aforesaid Supply Chain Management

declaration form.

4.1.3 The Presence of Aggravating Factors

4.1.3.1 The Councillor holds an Office that requires trust, honesty and accountability.

4.1.3.2 Councillors are expected to be custodians of the Rules and Regulations of Council.

4.1.3.3 It was submitted that the offence committed by Councillor Mfeka is a serious

transgression or violation of the Councillors Code of Conduct.

4.1.3.4 Schedule 1 of the Code provides that a Councillor must at all times act in the best

interest of Council in such a way that the credibility and integrity of the Municipality

is not compromised. However, in this regard, there was no compliance of the Code

by Councillor Mfeka.

4.1.3.5 In considering whether there were any previous findings against the Councillor in

relation to the non-disclosure of business interests with the Municipality, it was noted

that this was the first appearance of Councillor Mfeka to the Ethics Committee.

4.1.3.6 Schedule 5(2) of the Local Government : Municipal Systems Act requires

Councillors to disclose full particulars of the benefit of which the Councillor is aware

at the first meeting of the Municipal Council at which it is possible for the Councillor

to make the disclosure. However, in this regard, Councillor Mfeka failed to declare

his spouse’s Company and financial interest in Nzungwane Trading cc, which is in

contravention of the Code of Conduct and compromises the credibility and integrity

of the Local Government : Municipal Systems Act.

4.1.3.7 Having noted Councillor Mfeka’s plea of not guilty to the above charge, it was

submitted that he did not show any remorse for his conduct in terms of the Code.

4.1.4 The Presence of Mitigating Factors

Councillor Mfeka reiterated that he was unaware of the business dealings of his

spouse. He submitted that in light of his spouse having her private business, he did

not have authority to explore further on her business dealings. He nonetheless

indicated that he would accept any sanction from the Ethics Committee because he

respects the Committee.



4.2 Factors taken into consideration in deciding an appropriate Sanction

In deciding an appropriate Sanction relating to Councillor Mfeka’s matter, the Ethics

Committee took into consideration the following factors:-

4.2.1 Councillor Mfeka was unaware of his spouse’s business dealings with the

Municipality. He only became aware of such misconduct when he was informed at a

Council meeting.

.2.2 The Committee took into consideration that given the nature of investigations

conducted by the City Integrity & Investigations Unit, Councillor Mfeka was not

afforded an opportunity to present his case, hence his unawareness of the alleged

misconduct.

4.2.3 The Committee during its deliberations also took into account that the Law did not

restrict spouses of Councillors from transacting with the Municipality, however

stated that should there be an awareness of such, the necessary disclosures should be

made.

4.2.4 The Committee also took into consideration that Councillor Mfeka was able to

provide supporting documents to confirm that his spouse had declared her business

dealings with the Municipality. A further factor was taken into account that although

the Councillor did not disclose his spouse’s business dealings with the Municipality,

the Committee did not view the allegation to be serious as the necessary proof of

evidence were made available to support his case.

4.2.5 Therefore, having considered the balance of probabilities, the Committee accepted

the evidence provided by Councillor Mfeka and found him to be not guilty.

4.3 Sanction

In terms of Local Government : Municipal Systems Act 32 of 2000 (Schedule 1)

Section 14(2), should the Council or a special Committee finds that a Councillor has

breached a provision of this Code, the Council may:-

(a) issue a formal warning to a Councillor;

(b) reprimand a Councillor;

(c) request the MEC for Local Government in the Province to suspend a

Councillor for a period;

(d) fine a Councillor; and

(e) request the MEC to remove a Councillor from Office.

4.4 Right to Appeal

Schedule 1, Section 14(3)(a) of the Local Government : Municipal Systems act 32 of

2000 stipulate that:

“(3)(a) Any Councillor who has been warned, reprimanded or fined in terms of

paragraph (a), (b) or (d) above, may within 14 days of having been notified

of the decision of Council appeal to the MEC for Co-operative Governance

and Traditional Affairs (COGTA) in writing, setting out the reasons on

which the appeal is based.

(b) A copy of the appeal must be provided to Council.



(d) The MEC for Co-operative Governance and Traditional Affairs (COGTA)

may, after having considered the appeal, confirm, set aside or vary the

decision of the Council and inform the Councillor and the Council of the

outcome of the appeal.”

It should be noted that Councillors Graham and Hoosen did not support the verdict of

not guilty. Therefore, with majority consensus in the above matter,


4.4.1 That in terms of Section 5(2) of the Local Government : Municipal Systems Act 32

of 2000, Councillor Patrick Mfeka is NOT GUILTY.

4.4.2 That given the findings and recommendations of the Ethics Committee in relation to

the alleged breach for failure to declare a close family Member having interest with

the Municipality by Councillor Patrick Mfeka, Council grants authority for the

Blacklisting Committee to review its decision to blacklist the Councillor.

5. APPROVAL OF THE ETHICS COMMITTEE REPORT : MEETING HELD ON

2016-04-21


That the Report of the Ethics Committee relative to the Alleged Failure to obtain a

requisite consent to conduct business by Councillor Sadaishum Naidoo and the

Alleged failure to declare a close family member having interest with the

Municipality by Councillor Patrick Mfeka, be adopted and a copy thereof, be

submitted to the MEC for Co-operative Governance and Traditional Affairs for

information.

WL MAPENA

CHAIRPERSON

In view of the imminent Local Government Elections and, following a response

by the Head : Legal Services and Compliance to the question raised by

Councillor WL Mapena that matters could not be carried over to the newly

elected Council for consideration, but would need to be finalised by this

Council’s term of Office, the recommendations contained in the Second Report

of the Ethics Committee were withdrawn and referred back to that Committee.

_______________



REPORT OF COMMITTEE DECISIONS

Decisions of Committees reflected below have been reported to Council by way of circulating

minutes of such Committees to each Member of the Council:-

1. EThekwini AIDS Council (EAC)

Meeting held on : 2016-02-17

2. EXECUTIVE COMMITTEE

Meetings held on : 2016-03-23

: 2016-03-30

: 2016-03-31

3. FINANCE AND PROCUREMENT COMMITTEE


: 2016-03-17

4. HUMAN SETTLEMENTS AND INFRASTRUCTURE COMMITTEE


5. HUMAN RESOURCES DEVELOPMENT SUB-COMMITTEE: TREASURY AND

OFFICE OF THE CITY MANAGER


: 2016-03-03

6. LOCAL LABOUR FORUM: Electricity Unit


7. TOWN PLANNING SUB-COMMITTEE


NOTED. _______________

ITEMS FOR NOTING

The Items For Noting, as reflected on pages 27 to 29 of the Agenda, were NOTED.

__________________

The meeting terminated at 15:30.

CONFIRMED AT THE MEETING OF THE ETHEKWINI COUNCIL ON 2016-05-25

SPEAKER

OF eThekwini Council - Durban Minutes and...Catalytic Project Update and Recommendations : Durban...

Documents

Transcript of OF eThekwini Council - Durban Minutes and...Catalytic Project Update and Recommendations : Durban...