Approved WRDA Report

2012/13

2012/13

ANNUAL REPORT

1 2012/13 Annual report

CORPORATE PROFILE

The West Rand Development Agency (WRDA) was established through Council Resolution and

in terms of the new Companies Act of 2008; the organisation is a State Owned Company (SOC

Ltd) with effect from 1 May 2011. The WRDA is a Municipal Owned Entity (MOE), and in terms

of its most current Service Delivery Agreement (2008) it is established and controlled by the

West Rand District Municipality (WRDM), although the four local municipalities within the district

have committed themselves to full support of the WRDA. The WRDA is regulated by the

Municipal Systems Act (Act 32 of 2000) and the Municipal Finance Management Act (Act 56 of

2003).

The WRDA was created as a focused response to the challenges faced by West Rand region

municipalities in fulfilling their developmental local government role; and to be the economic

development agency for the West Rand region. It was established for „the express and sole

purpose of assisting the Municipality to achieve global standards of economic growth and

development for all within the area of jurisdiction of the WRDM‟. To this end, the WRDA

undertakes to act at all times in accordance with the Integrated Development Plans (IDP)

adopted by the West Rand Municipalities.

Board of Directors

Simon Mohapi Chairperson

Christa Venter Deputy Chairperson

Maxwell Ramagaga

Zanele Mazibuko

Dumisani Ndlovu

Queeneth Nkosi

Modibe Ramodibe

Deborah Don-Pierrot

Teboho Sejake


Ex-Officio Board Members (Shareholder Representatives)

Executive Management

Company Secretary

The company does not have a company secretary

Auditors

Auditor General of South Africa

Bankers

Standard Bank of South Africa (Pty) Ltd

Business Address Postal Address

22 Stubbs Street PO Box 109

Randfontein Randfontein

1760 1760

Cllr Elvis Mpithikezi MMC LED

Zeblon Mphaphuli WRDM LED Manager

Sipho Mhlongo Chief Executive Officer


Table of Contents EXECUTIVE SUMMARY .................................................................................................................................. 5

CHAIRPERSON’S STATEMENT ........................................................................................................................ 6

CHIEF EXECUTIVE OFFICER’S REPORT ........................................................................................................... 8

1 STRATEGIC OVERVIEW ............................................................................................................................. 10

Mandate of the West Rand Development Agency ................................................................................. 10

Vision Statement ..................................................................................................................................... 10

Mission Statement .................................................................................................................................. 10

2012/13 Strategic Goals and Objectives ................................................................................................. 11

Corporate Values .................................................................................................................................... 11

Revisions to Strategic Goals and Objectives ........................................................................................... 12

Legislative and Policy context ................................................................................................................. 13

West Rand District Profile ...................................................................................................................... 15

2 CORPORATE GOVERNANCE ...................................................................................................................... 18

Shareholder Governance Relationship ................................................................................................... 18

Board establishment and composition ................................................................................................... 18

Board Committees .................................................................................................................................. 19

Board Responsibilities and Duties ........................................................................................................... 20

Board Meetings ....................................................................................................................................... 21

Board Committee Meetings .................................................................................................................... 22

Corporate Code of Conduct .................................................................................................................... 22

Interest in contracts and related party transactions .............................................................................. 22

Internal Control ....................................................................................................................................... 23

Risk Management ................................................................................................................................... 23

Sustainability ........................................................................................................................................... 24

Approved policies and Guidelines ........................................................................................................... 25

Board Committee Reports ...................................................................................................................... 25

Audit, Finance and Risk Committee Report ........................................................................................ 26

Human Resources and Remuneration Committee Report ................................................................. 28

Projects and Tender Committee Report ............................................................................................. 29


3 PERFORMANCE ........................................................................................................................................ 30

Key highlights .......................................................................................................................................... 30

Operational highlights ............................................................................................................................. 32

Project highlights .................................................................................................................................... 33

Donaldson Dam ................................................................................................................................... 33

Katlego Cultural Facility ...................................................................................................................... 35

Plastics Recycling ................................................................................................................................ 36

Investment Facilitation ........................................................................................................................... 38

Partnerships ............................................................................................................................................ 39

Reporting ................................................................................................................................................. 40

4 ORGANIZATIONAL DEVELOPMENT .......................................................................................................... 41

Staff establishment ................................................................................................................................. 41

Current Organizational Structure ............................................................................................................ 41

Recommended Organizational Structure ............................................................................................... 42

Sick Leave taken ...................................................................................................................................... 42

5 PERFORMANCE SCHEDULE (SDBIP) .......................................................................................................... 43

Strategic Goal 1 ....................................................................................................................................... 43

Strategic Goal 2 ....................................................................................................................................... 44

Strategic Goal 3 ....................................................................................................................................... 45

Strategic Goal 4 ....................................................................................................................................... 48

Strategic Goal 5 ....................................................................................................................................... 52

ANNUAL FINANCIAL STATEMENTS ......................................................................................................... Part 2

AUDITOR-GENERALS REPORT ................................................................................................................ Part 3

GENERAL INFORMATION ............................................................................................................................ XX


EXECUTIVE SUMMARY

The 2012/2013 Annual Report was compiled in accordance with the requirement of the

Municipal Finance Management Act 56 of 2003 (MFMA) and Company‟s Act.1973.The purpose

of this report is to provide feedback:

• On activities of the municipal entity

• To provide a report on performance, and

• To promote accountability to the community for the decisions made from July 2012 – June

2013

This Annual Report includes:

• • Municipal Entity‟s annual performance report

• • Annual Financial Statements of the municipal entity;

• • The Auditor General‟s report on municipal entity performance

The report has been compiled to adhere to the main reporting areas as set out by the guiding

regulations indicated above. It conforms to standard practice for companies and also follows the

sequencing as prescribed by treasury guidelines for annual reports.

It must be noted that the treasury template provided to municipalities for annual reports for

2012/13 financial year has not been utilized in the format provided owing to the nature and

format of information at the Agency‟s disposal. Due care has been taken to ensure that the

report reflects as much as possible the information required as in the treasury template.

In terms of the processes prescribed by the MFMA Section 127(1), the Accounting Officer of a

municipal entity must, within six (6) months after the end of a financial year, or on such earlier

date as may be agreed between the entity and its parent municipality submit the entity‟s annual

report for that financial year to the municipal manager of the entity‟s parent municipality


CHAIRPERSONS’ STATEMENT

In its first year, this board has demonstrated an incredible amount of knowledge and expertise in

responding to the challenges of the organization and benefitted the organization greatly through

their collective experience in providing strategic direction and oversight to the management of

the Agency. The challenge of operating in a highly regulated and complex environment has not

deterred nor discouraged the required contribution of the board to advance the organization.

Let me highlight just two of the challenges that impact on delivery capability and organizational

effectiveness. Human and financial resources and certainly these need attention. The limited

human resource capacity continues to impede the provision of the full range of services that

must be rendered by the Agency whose functions require professionals to perform them. The

Agency‟s management is under enormous pressure to make things happen and still comply with

proper businesses practices to keep the organization going. Undoubtedly, it must be said that it

is through the support of the shareholders that key functions are taking place on an outsourced

basis to the district municipality.

The 2012/13 year saw the exit of both the Interim Board and the Acting CEO as they were

replaced by this board as well as our appointment of the CEO. This follows the principle

decision that was taken by the shareholders for the WRDA to continue operating as the

developmental arm of the West Rand District. The able leadership they gave to the WRDA

during the period of uncertainty deserves a special mention in this report

During this financial year, best practice in corporate governance was demonstrated. The Board

met as scheduled and as required but importantly, demonstrated commitment and the will to

achieve by going an extra mile with meetings exceeding the prescribed requirements. All the

Committees including HR & Remunerations and the Tender & Projects worked tirelessly in

giving shape to the Agency and the Audit, Finance and Risk Committee performed their duties

diligently both in terms of adhering to financial reporting and risk management processes.

Furthermore, during April and May 2013, the Board and Management Team of the WRDA

convened to conduct a thorough strategic review, looking at progress and performance to date.

During this period, a sincere conversation took place with the shareholders in which

expectations and reprioritisation of the Agency‟s mandate was set out. This culminated in the

development of a redefined Strategic Plan as well as a 3 year Business plan. In so doing, the

WRDA considered both successes and challenges experienced in delivery against its strategic

intent and reflected extensively on its alignment to the national, provincial and local priorities


reflected in the Growth and Development Strategy (GDS), the Medium Term Strategic

Framework (MTSF) and the National Development Plan (NDP) with particular focus on the

Outcome of “Decent employment through inclusive economic growth.”

In this regard, the Strategic Plan and aligned Business Plan of the WRDA reflects an intent to

contribute substantively as the economic development agent for the West Rand area by

stimulating, facilitating, implementing and supporting economic development and job creation

projects and initiatives. This intent will be supported through the leveraging and mobilisation of

partnerships with both the public and private sectors for the roll-out of sustainable and

integrated economic infrastructure and development interventions. Strategic relationships will

form a critical component of the degree to which the WRDA will fulfill its mandate. In light of our

new business model, it is imperative that we work actively with all spheres of government, as

well as with many partners from the private sector and developmental funding community.

The re-emergence of the WRDA is significant for the future of the West Rand, particularly

because the Agency has the ability to change the face of the region. We are cognisant of the

role that we need to play in enabling a multiplier effect in the region‟s growth and development.

We are also confident in our ability to achieve this due to the unwavering support expressed by

our shareholders.

As indicated earlier, this has been a year of critical review and moving forward, we are willing to

work hard and smart. The WRDA looks forward to becoming an integral part of delivery in the

West Rand District through piloting ground breaking concepts that define the region‟s rightful

place as the origins of all things evolutionary and catalytic for human nature.

I would like to take this opportunity to express the WRDA Board‟s commitment to support the

organisation as it continues to concentrate on excellent service delivery to our region and its

people through the performance focus and intent outlined in the redefined Strategic Plan for the

period 2013/14 – 2017/18. In this regard, the WRDA is confident that it will enhance its

capability and capacity and will continue with its ongoing efforts to improve its governance

systems and service delivery outcomes in the FY2013/14 period.

Also, I would like to thank the Executive Mayors of the West Rand for their support both through

consistent encouragement and exceptional strategic guidance. We look forward to a close

working relationship with the Executive Mayors and West Rand Municipalities as we strive to

better the lives of our people. In addition, the commitment and support from the MMC Local


Economic Development has enabled the board to gear up to the work on hand that must be

undertaken.

I am grateful to each non-executive director that serves on the Board for their time and valuable

input. We thank the selfless effort of the WRDA management and staff under the able

stewardship of the CEO towards making this report possible

Lastly, I can report the following in terms of my responsibilities as Chairperson, that I have:

Provided overall leadership to the board without limiting the principle of collective

responsibility for the board

Strived to ensure an efficient organization and good conduct of the board

Engaged in processes to monitor the board through an agreed framework

Facilitated board discussions to ensure that the core issues facing the Agency are

addressed, however it has been a struggle to convene all shareholders to discuss possible

sollutions

Always ensured that all the boards directors are briefed on issues arising due to the intimate

detail management shares with me on challenges and matters arising from strategic

engagements

Made sure that I facilitate the effective contribution and on going development of directors,

with one of the exercises undertaken during the strategic planning session of the Agency, in

which directors were schooled on government frameworks and planning processes

Promoted consultative and respectful relations amongst board members and between the

board and management

Ensured that I chair all the Board meetings to lead by example and inspire the board.

Laslty let me indicate that this annual report is a true reflection of the WRDA for the financial

year ending 30 June 2013 given all that has transpired in the course of the 2012/13 financial

year..

CHAIRPERSON OF THE BOARD


CHIEF EXECUTIVE OFFICER’S REPORT

The year under review has provided the Agency with the opportunity to begin afresh, relooking

at the manner of doing business. A fresh approach to doing business is instigated in fulfillment

of the mandate conferred by the shareholders. There is an emphasis by shareholders on the

requirement to have a vehicle driving economic development in the West Rand, given that the

region is awash with developmental opportunities that are across municipal boundaries. That

being the case, the challenges are complex, whereby there is still a struggle to identify the

catalytic interventions that will make a meaningful difference in the economy of this region,

without sacrificing the character of the West Rand as the origins of humanity.

Having joined the Agency in the latter part of the financial year, it was through the assistance of

the outgoing Acting CEO, Mr Mphaphuli, that one acquired a good grasp of the challenges,

areas of need and low hanging fruit. Interestingly it has been a flurry of activity trying to respond

to compliance requirements and engaging with key stakeholders to get things going.

The dire shortage of professional staff has created an adverse effect on the overall performance

of the entity although one must appreciate the support that the agency is receiving from the

parent municipality in performing some of its functions. This includes technical financial

management support and operational support on some of the projects. The resourcing

challenge has been caused largely by the attrition of financial support from the shareholder

owing to fiscus constraints. In order to remedy this a process has been agreed to reverse back

into the WRDA budget the allocations for approved posts. Furthermore an opportunity has been

provided by the IDC to provide resources to recruit project related personnel on the funds from

the commitment provided.

In terms of current operational areas, there have been gains and not so gains with regards to

planned targets. The search for a developmental partner for Donaldson Dam had to be called

off as there were no serious contenders based on the poor quality of responses received.

However this has created an opportunity to view a broader developmental objective on the

required tourism infrastructure to support enterprise development in this sector. Also this broad

view approach spread on to the Plastics project, in which the WRDA needs to focus on

incubating entrants to the plastic manufacturing industry. This particular project has also

amplified the need to adopt a private sector style approach to conducting business so that the

procurement challenges which have been experienced in the project do not repeat themselves.

To put in context, production at the factory stopped due to a critical infrastructure not being

replaced in time. On the other hand delays can help, as in the Katlego Cultural Facility project

by making it possible to review the institutional model that had created a stalemate for years.

Today a solution is in hand to take the project forward that is supported in principle by all the

project partners.

From April to May 2013, the Agency through the board deliberated on strategic issues and the

focus has been on what actions are required to accelerate economic growth and development in

the West Rand. Based on interactions with the District and Local Municipal leadership, the

Agency has revisited its value proposition and furthermore a revised 5 year strategy, 3 year

business plan have been developed.


In terms of service delivery outcomes for the 2013/14 Financial Year the agency will focus on

cover 3 areas, namely:

Focused support to targeted sectors resulting in equitable economic development and

inclusive growth such as the agri-sector/green sectors and possibly transport sector

Strategic economic development interventions supporting employment-led growth and

development looking into economic infrastructure to support industrial development such

as incubator facilities for the plastic sector

An enabling environment for trade and investment into the region by ensuring that there

is efficiency of service to investors and businesses alike and setting up access portals

and networks.

For each area outlined the Agency will be delivering on programmes to realize the objectives

listed therein. Of emphasis will be the mobilization of key economic stakeholders in the region to

involve them in implementation programmes and importantly to build on synergies.

Although the Agency has had its fair share of challenges in the past which are well document in

various reports including the Auditor Generals findings as well as in the detail on performance of

this report. I implore all past and present stakeholders to take another look at the new

developments that are being driven by the Agency. The turnaround strategies described in the

performance section of this report reflect the remedies that have been approved by the board

for implementation by management. In a nutshell the challenges will be addressed by ensuring

that the WRDA focuses on rollout of projects rather than to try and manage redundant projects

for revenue generation. Other avenues for revenue will be looked on the basis of mobilizing

resources and funding to execute projects. The WRDA will not try and compete with the private

sector and beneficiaries it is mandated to develop.

The signs are clear that the will be an enhanced presence of the agency in the region and

deeper involvement in project conceptualization and rollout. Economic stakeholders should

begin to view the WRDA as their developmental partner for activities they conduct in the West

Rand and participate in the engagement platforms that the agency will create.

I would like to thank the WRDA Chairman whose wise counsel in tandem with the valued

counsel of the WRDA Board has enabled me to adjust to this complex and demanding

environment given the limited resources and challenges facing the WRDA. I would also like to

reiterate the gratitude of the Chairman expressed to the Political Executive of the West Rand for

the support provided. Last but not least, I thank the staff at the agency for keeping up with the

demands I have placed on them and the effort they have put in getting the job done.

CHIEF EXECUTIVE OFFICER


1 STRATEGIC OVERVIEW

The Mandate of the West Rand Development Agency.

The West Rand Development Agency (WRDA) was established through Council Resolution and

registered as a private company with limited liability (Pty Ltd) in February 2005. It is a Municipal

Owned Entity (MOE), and in terms of its 2008 Service Delivery Agreement it is established and

controlled by the West Rand District Municipality (WRDM), although the four local municipalities

within the district have committed themselves to full support of the WRDA. The WRDA is

regulated by the Municipal Systems Act (Act 32 of 2000) and the Municipal Finance

Management Act (Act 56 of 2003). In terms of the new Companies Act of 2008, the organisation

is now deemed to be a State Owned Company (SOC Ltd) as of 1 May 2011.

The primary role of the WRDA is to act as the economic development agent for the West Rand

in so far as to stimulate, facilitate, implement and support economic development and job

creation projects and initiatives that will contribute to regional economic development. In its

functioning, it will therefore serve as an extension of the LED responsibilities of the WRDM and

the local municipalities in the West Rand District.

In line with national and international trends, the WRDA will have the explicit task of developing

the unique opportunities in the West Rand (the so-called “pockets of excellence”) that will

ensure economic sustainability and competitiveness. In so doing, the WRDA will focus on the

visible implementation of economic projects that will have a significant level of impact on the

economy and socio-economic and spatial environment of the West Rand.

The WRDA adopted a vision and mission that reflects the commitment of a wide variety of

stakeholders in the region to the support of a network aimed at fostering economic development

and employment creation, hence the vision and mission states:

VISION STATEMENT

“Enabling competitive regional economic development”.

MISSION STATEMENT

To provide economic development facilitation services towards sustainable economic growth for

the benefit of communities within the West Rand

Acknowledged as an important agency by the Executive Mayor of the WRDM, the WRDA

Service Delivery Agreement further outlines the primary mandate of the WRDA as follows:


To monitor and implement key strategic economic development projects in WRDM's area of

jurisdiction;

To act as the economic development agent for the West Rand area and to stimulate,

facilitate, implement and support economic development and job creation projects and

initiatives that will contribute to regional socio-economic development;

To develop the unique opportunities in the West Rand that will ensure economic

sustainability and competitiveness; and

To focus on the visible implementation of economic projects that will significantly impact the

regional economy and foster socio-economic and spatial development in the region.

2012/13 Strategic Goals and Objectives

STRATEGIC GOALS OBJECTIVES

To mobilise resources for economic development projects / programmes through partnerships

Leveraging funds Attracting expertise / skills (egg. programme / project

management) Assets mobilisation (land, infrastructure availability)

To provide trade and investment promotion support in the region

Investment promotion (marketing, facilitation, after care)

Trade promotion (access to markets, domestic, international)

To provide programme / project management support services

Project planning management (project identification, project scoping, project feasibility)

Project implementation management (tendering, contractor management, project marketing, project handover)

To ensure internal business excellence

Business management / leadership

◦ Strategic positioning

◦ Business performance management

◦ Stakeholder relations management / communication Resource management

◦ Human resource management

◦ Financial management

◦ ICT management

◦ Infrastructure / facilities management

◦ Information / knowledge management

Values

Collaboration (partnering / consultative / participative)

Integrity (accountable / transparency / honesty / ethical / trustworthy / reliable)

Proactive (flexible / innovative / creative / adaptable / visionary)

Client focused (delivery orientated / accessible / results oriented / make things happen /

solution oriented)

Passionate (dedicated / motivated / committed / enthusiastic)

Decisive (assertive / confident / self-assured)


Revisions to Strategic Goals and Objectives

During the course of the financial year, a strategic review was undertaken by the Board of

Directors in conjunction with shareholder municipalities of the West Rand. The strategic goals of

the West Rand Development Agency have now been derived from an analysis of the

environment, key risks and challenges and strategic issues that the organisation should

address; and are aligned to national, provincial and regional / district strategic priorities and

outcomes, and the policy environment outlined below.

In supporting the focus of the Gauteng Department of Economic Development, the WRDA

supports National Outcome and Provincial Outcome 4 - as a proactive contributor to the

development of “decent employment through inclusive economic growth” in Gauteng.

In this context, the West Rand Development Agency‟s overarching strategic intent is to “act as

the economic development agency for the West Rand region, with a proactive focus to

stimulate, facilitate, implement and support economic development and job creation

projects and initiatives that will contribute to visible regional socio-economic and spatial

development”.

Towards the attainment of its aim, five strategic goals have been developed in order to enable

the WRDA to effectively focus and prioritise its options in delivering on its mandate and

responding to the above strategic priorities. The approach sought to ensure that the strategic

goals are both reactive to the environment and development priorities and also proactive in

setting the desired future state.

The strategic goals are framed as statements that describe the outcome expected as a result of

WRDA intervention to 2017/18, and are now as follows:

BALANCED STRATEGY

PERSPECTIVE WRDA STRATEGIC GOAL STRATEGIC OBJECTIVES

SHAREHOLDER VALUE 1. Focused support to targeted sectors

resulting in equitable economic

development and inclusive growth

Market and business intelligence to support

decision making

Support the inclusiveness of stakeholders in

planning and beneficiation.

Programmes and interventions towards

knowledge and labour intensive sectors

conceptualised.

2. Strategic economic development

interventions supporting

employment-led growth and

development

A set of prioritised projects based on impact

criteria is translated into bankable business

plans.

Targeted strategic economic infrastructure

projects implemented.

External funding and partnership

opportunities secured.


BALANCED STRATEGY

PERSPECTIVE WRDA STRATEGIC GOAL STRATEGIC OBJECTIVES

CUSTOMER

DEVELOPMENT

3. An enabling environment for trade

and investment into the region.

Enterprise development and initiatives to

address barriers to entry.

Packaged services to support business

functioning.

Targeted export promotion and export

readiness in targeted sectors.

Viable foreign and local investment directly

facilitated.

Positioning the West Rand as a preferred

trade and investment destination

INTERNAL PROCESSES

& ORGANISATION

EFFECTIVENESS

4. Public accountability, high

standards of corporate governance

and efficient resource utilisation.

Financial accountability and compliance to all

prescribed regulations and guidelines.

Enhanced business and operational

processes.

Enhanced information and knowledge

management systems - integrated with those

of shareholder.

Compliance reflected through Internal and

External Audits.

LEARNING AND

GROWTH

5. High performance in an enabling

business environment.

An optimal WRDA design which is

capacitated to support the strategy.

Effective Performance Management and

Development of staff.

Enhanced organisational performance

through the provision of effective support

services.

Legislative and Policy Context

The WRDA was established for „the express and sole purpose of assisting the Municipality to

achieve global standards of economic growth and development for all within the area of

jurisdiction of the WRDM‟. To this end, the WRDA acts at all times in accordance with the

legislative frameworks and policy guidelines developed by the 3 spheres of government.

Furthermore its activities are intended to support the Integrated Development Plans (IDP)

adopted by the West Rand Municipalities.

With this broad context in mind, it is then important to consider the characteristics and policy

environment of the West Rand as a District Municipality with its Local Municipalities. There are a

number of Acts, policies, strategies which provide a context to the work of the WRDA.


RELEVANT LEGISLATION AND POLICY FRAMEWORKS

NATIONAL LEVEL

Constitution of the Republic of South Africa, Act 108 of 1996

Companies Act, 71 of 2008, as amended

King Codes of Good Governance

Municipal Finance Management Act 56 of 2003, as amended

Municipal Systems Act 32 of 2000, as amended

The Millennium Development Goals (MDGs)

The National Development Plan (2012)

The National Industrial Policy Action Plan (IPAP2) (2010)

The Developmental New Growth Path (2008)

The Medium Term Strategic Framework (MTSF) for government, 2009-14

The Outcomes Based approach (2010)

PROVINCIAL LEVEL

The Gauteng City Region (GCR) perspective (2008)

Gauteng Vision 2055

The Gauteng Employment, Growth and Development Strategy (GEGDS) (2010)

Gauteng Spatial Development Framework

Gauteng Industrial Policy Framework (GIPF)

Gauteng Green Economy Strategy

The Gauteng Local Economic Development Framework (2009)

Gauteng Rural Development Strategy

Gauteng Cooperatives Development Strategy

LOCAL LEVEL

The West Rand Growth and Development Strategy

The West Rand District Municipality Integrated Development Plan (2012)

and

The aligned Integrated Development Plans of the four Local Municipalities

The West Rand Green Economy Strategy (Green IQ)

The West Rand Tourism Strategy for the MCLM and District Managed Area

The West Rand Marketing and Investment Strategy

West Rand District Spatial Development Framework


As stipulated in the SDA of 2008, the WRDA is compelled to work within the framework and

limitations of the GDS of the WRDM and the IDP of the WRDM. By association, the work of the

WRDA is also informed by the IDP‟s of the four Local Municipalities. The six strategic priorities

of the GDS of the WRDM are outlined in the figure below.

The Six Strategic Priorities of the GDS of the WRDM

West Rand District Profile The West Rand district Municipality (WRDM) is situated in the western part of the Gauteng Province (GP), bordering the North West Province. The WRDM covers approximately 2,442.4 km² in extent consists of four local municipalities as follows:

Merafong City Local Municipality, covering a total area of 1630.57 km², Mogale City Local Municipality, covering a total area of 1120 km², Randfontein Local Municipality, covering a total area of 442.4 km², Westonaria Local Municipality, covering a total area of 637.6 km², and The Cradle of Humankind World Heritage Site (under management of the Gauteng

Tourism Authority), covering a total area of 242.4 km².


The WRDM, with 7% of Gauteng‟s population, contributes a relatively small 5.2% to the

economy of the Gauteng province. It has, as its neighbouring municipalities the City of Joburg

Metropolitan Municipality; City of Tshwane Metropolitan Municipality; Bojanala Platinum District

Municipality; Sedibeng District Municipality and Dr. Kenneth Kaunda District Municipality. The

basic demographic information of the West Rand is summarised in the table below:

Characteristic Mogale City Merafong Randfontein Westonaria WRDM

Population 362 420 (44.1%)

197 521 (24.1%)

149 286 (18.2%)

111 768 (13.6%)

820 994 (100%)

Average household size (members)

3.7 3.4 3.3 4.0 3.8

Economically active population (EAP)

259 918 143 278 104 848 81 927 589 970

Employed as % of EAP 51.8% 46.5% 49.1% 49.5% 49.7%

*Unemployed as % of EAP

48.2% 53.5% 50.9% 50.5% 50.3%

Source: Statistics South Africa, 2011

The spatial structure of the district is predominantly rural. The main areas of economic activity in

the West Rand District are Krugersdorp, Randfontein and Westonaria. The dominant land uses

include residential, mining and agriculture. This being said, the West Rand District is the next

developmental area for the Gauteng region, with a natural progression towards the district and

the district being able to develop in any direction.

Historically, Gauteng (and the West Rand) has been built on the Gold industry. Mines, mining

houses and the related industries thrive in this province. There are approximately 159 mines –

of which 44 of them gold mines - in Gauteng that together produce a quarter of South Africa's

total mineral production. Most of the mining is for gold - 80% of Gauteng's output.

One of the most important aquifers in South Africa is the dolomitic aquifer of the West Rand and

Far West Rand area. Due to the anthropogenic influences from both mining and industrial

sources, this aquifer is increasingly under threat of becoming a vast unexploitable reserve of no

use as a groundwater resource. The gold-bearing reefs contain an array of minerals such as

native gold, uranium oxides, traces of platinum and an array of sulphide minerals with pyrite

being the most abundant. Most of the mines have produced uranium as well as gold.

Gold mining is the principle economic activity in the West Rand and Far West Rand regions.

This industry is the basis of the economy and socio-economic development of the region. Gold

mining on the West Wits Line contains of the biggest and richest mines in the entire

Witwatersrand basin. Unfortunately, associated with all the economic and social benefits arising

from gold mining there are several negative impacts on the environment.


The below figures provide a perspective on the size of the economy of the WRDM and the Local

Municipalities. As stated earlier the WRDM contributes 5.2% to the Gauteng economy and

Mogale City accounts for more than half of the economy of the WRDM. Westonaria is the

smallest of the local municipalities in economic terms.

*Source: Demacon

Concluding comment

Mining as stated earlier, is still- and will be for many years to come- an important economic

sector of the District in terms of both production and employment. Agriculture is an important but

under-developed sector. It is however a sector in which the GPG is investing as part of its rollout

of agricultural hubs. Its proximity to the largest consumer markets for perishable goods in South

Africa (City of Tshwane and City of Joburg), agriculture (and agro-processing) has the potential

of developing into a significant competitive advantage for the West Rand.

A further comparative advantage of the WRDM is tourism, with a number of well renowned sites

such as the Cradle of Humankind World Heritage site within its borders. These attractions can

contribute to the increase of the regions share of international and domestic tourism arrivals and

capitalise on the resultant opportunity for economic growth.

The West Rand is relatively well connected to other regions, municipalities and districts via road

and rail networks and corridors. The Lanseria airport also ensures excellent accessibility for

manufacturing, agro-processing and distribution. The airport is also one of a number of

significant development nodes in the region. The West Rand has the opportunity to become the

future blueprint for urban growth models that emphasize sustainable development.


2 CORPORATE GOVERNANCE

Shareholder Governance Relationship

To re-iterate once more, the WRDA was established through Council Resolution and registered

as a private company with limited liability (Pty Ltd) in February 2005. It is a Municipal Owned

Entity (MOE), and in terms of its 2008 Service Delivery Agreement it is established and

controlled by the West Rand District Municipality (WRDM), although the four local municipalities

within the district have committed themselves to full support of the WRDA. The commitment will

be in the form of annual contributions to the operational costs of the Agency. The expected

return on investment from these contributions is increased capital stock investment that will lead

to an increase revenue base, job opportunities for local people and better social cohesion for

communities in the respective municipalities. Importantly West Rand municipalities will be able

to increase service delivery output as they will have the means due to increased revenues to

deliver through increased capacity and the ability to procure the required goods to provide

service to citizens.

The WRDA is established as State Owned Company and is not a Municipal Department,

Specialised Service Delivery Unit or Trading Entity, and is equally not established as a Not for

Profit Company (previously Section 21). The relationship framework and how the WRDA

interacts with shareholders is represented below:

WRDM Municipal Manager

WRDA CEO

WRDA

Board of Directors

District Executive Mayor

Sectio

n 8

0

LE

D

Co

mm

ittee

Sectio

n 8

0

Fin

an

ce

Co

mm

ittee

LED Manager

West Rand District Municipality

Council

WRDM CFO

Westonaria LM

Merafong LM

Randfontein LM

Mogale City LM

WRDA GOVERNANCE AND REPORTING RELATIONSHIP

MMC LED *Ex

* MMC LED AND LED MANAGER are Ex Officio on the WRDA Board of Directors


Board establishment and Composition

Shareholder commitment to ensure proper corporate governance was evidenced in the

appointment of the board of directors and through the provision of critical support functions for

the Agency, although the ideal is still to be achieved. August 2012 saw the resignation of the

Interim Board of the Agency, these were largely officials from West Rand municipalities who

were assigned to assist the Agency during the transition period. They are listed below

NAME DESIGNATION GENDER MUNICIPALITY

Thabo Ndlovu Chairperson Male Westonaria

R Mokebe Ordinary Board Member Female Mogale City

Thys Wienekus Ordinary Board Member Male Merafong

Ivan Mashego Ordinary Board Member Male Randfontein

The Board was appointed on the 6th August 2012 by the Executive Mayor as per the Municipal

Systems Act 32 of 2000 [ss93 (e)]. It comprises of 9 independent directors, including the

Chairperson with varied and extensive experience in their respective professional fields. The

directors‟ appointments are based on their ability to contribute appropriate skills and time

required to guide the operations and development of the agency. The period of appointment is

36 months and will be reviewed by the shareholder at the end of term, including an annual

assessment of board performance. The table below lists the board members.

NAME DESIGNATION GENDER PROFESSION

Simon Moeketsi Mohapi Non- Executive Chairperson Male Financial

Advisor

Christa Petronella Venter Non-Executive Deputy Chairperson Female Environmental

Strategist

Dipapiso Maxwell Ramagaga Non-Executive Director Male Accountant

Yolanda Deborah Christelle

Don-Pierrot Non-Executive Director Female Auditor

Nathaniel Modibe Ramodibe Non-Executive Director Male Industrial

Psychologist

Teboho Michael Sejake Non-Executive Director Male Social

scientist

Nelson Dumisani Ndlovu Non-Executive Director Male Agriculturist

Queeneth Ntombikayise Nkosi Non-Executive Director Female Auditor

Zanele Mazibuko

Non-Executive Director Female

Political

scientist

Board Committees

The board exercised its discretion on the governance structure required and some of the board

committees were merged as there were synergies for effectiveness of board operations.

Importantly this approach was to maintain costs of board operations at a minimal level given the

budgetary challenges of the agency. Through the assessment process the critical


subcommittees that were deemed necessary and further comply with statutory requirements

were established, namely the following:

Finance, Audit and Risk

Human Resource and Remuneration

Tender and Projects

Board members were subsequently assigned to capacitate the subcommittees and undertook to

develop the Terms of Reference and subcommittee charters, which were adopted by the board

in May 2013.

COMMITTEE COMPOSITION

Finance Audit and Risk Management Maxwell Ramagaga – Chairperson

Modibe Ramodibe Queeneth Nkosi Teboho Sejake Debbie Don-Pierrot

Human Resources and Remuneration committee.

Christa Venter - Chairperson Queeneth Nkosi Dumi Ndlovu Zanele Mazibuko Modibe Ramodibe

Tender and Projects committee.

Teboho Sejake - Chairperson Dumi Ndlovu Christa Venter Zanele Mazibuko Debbie Don-Pierrot Maxwell Ramagaga

Committee representation by board members

QN – Queeneth Nkosi, TS – Teboho Sejake, DM – Dumi Ndlovu, CV – Christa Venter, ZM – Zanele Mazibuko, DDP

– Debbie Don-Pierrot, MR – Modibe Ramodibe, MDR – Maxwell Dipapiso Ramagaga

Board Responsibilities and Duties The Board of Directors of the agency subscribes to the letter and spirit of good corporate

governance expressed in King Code III and the Code of Conduct for Directors referred to in

section 93L of the Municipal Systems Act, 2000 (as amended). The Board recognizes the need

to conduct the affairs of the municipal entity with integrity to ensure increased public confidence

COMMITTEE BOARD MEMBER

SM QN TS DN CV ZM DDP MR MDR No. MEMBERS

Finance Audit & Risk 5

HR & Remuneration 5

Tender & Projects 6


and the confidence of its parent municipality. It is the policy of the Board to actively review and

enhance the entity‟s systems of control and governance to ensure that the entity is managed

ethically and within prudently determined risk parameters.

The board operates within a unitary structure that provides for interaction among all board

members in the decision-making process on strategy, planning, performance, allocation of

resources, business ethics and communication to stakeholders.

The board ensured that immediately after appointment, it embarks on a process to assess the

state of the agency and to review the governance structures of the agency that were previously

established. The governance structures in the form of committees, assist the board in

discharging its duties through a system of delegations. However the board has the ultimate

responsibility for the oversight, management and strategic direction of the agency.

Accountability to the shareholder remains paramount in board decisions.

The duties of the WRDA Board are to:

Provide effective, transparent, accountable and coherent oversight of the WRDA‟s affairs;

Ensure that the WRDA complies with all applicable legislation, the Service Delivery

Agreement and the various shareholder policy directives issued by its parent municipality,

from time to time;

Deal with the parent municipality in good faith and communicates openly and promptly on all

pertinent matters requiring the attention of its shareholder;

Determine and develops strategies that set out the purpose, and values in accordance with

the shareholder mandate and strategic documents such as the IDP;

Review and approve financial objectives including significant capital allocations and

expenditure as determined by the parent municipality; and

Consider and ensure that the entity‟s size, diversity and skills make up are efficient to

ensure that the entity is able to achieve its strategic objectives.

Board Meetings:

6 board meetings were held during 2012/2013 financial year. The board schedule of meetings is

once a quarter (four times per year). Two special board meetings were held, i.e. an urgent

board meeting on 07 December 2012 to approve the appointment of the CEO and another one

on 18 January 2013 to approve the Mid-Term Budget. The board also undertook a full day

excursion to the project sites of the agency on the 26th March 2013 to assess firsthand the state

and operations of the projects.


BOARD MEETING ATTENDANCE APOLOGY

03 October 2012 Ordinary board meeting 100% None

06 November 2012 Ordinary Board Meeting 100% None

07 December 2012 Urgent Board Meeting

(Appointment of CEO)

100% None

18 January 2013 Special Board Meeting

(Mid-Term Budget)

100% None

06 March 2013 Ordinary Board Meeting 88% Ms Christa Venter

26 March 2013 Board excursion and

projects review

100% None

14 June 2013 Ordinary Board Meeting 88% Ms Debbie Don Perriot

Board Committee Meetings

The Board committees commenced with their respective duties from quarter 2 onwards, given

that the first Board meeting took place during the month of October. This was necessitated by

the fact that after appointed the board had to familiarize itself with relevant and pertinent

information on the Agency and it functions as they still undergoing induction during the first

quarter. Furthermore Board members were assigned to their respective committees during this

first Board meeting.

COMMITTEE ATTENDANCE APOLOGY

Finance, Audit and Risk Committee

20 November 2012 100%

23 January 2013 100%

13 February 2013 100%

29 May 2013 60% Mr Teboho Sejake Ms Queeneth Nkosi

HR & Remuneration Committee

18 October 2012 100%

13 February 2013 80% Ms Zanele Mazibuko

29 May 2013 100%

Tender and Projects Committee

19 November 2012 100%

13 February 2013 100%

29 May 2013 80% Mr Teboho Sejake

Corporate Code of Conduct

The board is committed to:

The highest standards of integrity and behaviour in all its dealings with its stakeholders and

society at large;

Carrying on business through fair commercial and competitive practices;

Eliminating discrimination and enabling employees to realize their potential through

continuous training and development of their skills;


Being responsible toward environmental and social issues; and

Ensuring that each of its directors declare any direct or indirect personal or business interest

that might adversely affect such director in the proper performance of his/her stewardship of

the entity

Interest in contracts and related party transactions

Board members disclose and/or declare their private business interests periodically as required

by the Declaration of Interest and Confidentiality Policy. In addition, they are required to declare

their interest on any agenda item at every Board meeting. A register of interests is maintained

by the Company.

Full disclosure of transactions with related parties is set out in a note to the financial statements.

Similarly, when engaged in business dealings on behalf of the WRDA, employees are expected

to avoid activities that might give rise to conflicts of interest. Employees are also expected to act

in the exclusive interests of the WRDA. Procedures have been put in place to deal with conflicts

of interest where these arise in the course of employees‟ daily activities.

Internal control

The Board has the ultimate responsibility for establishing a framework for internal controls,

including an appropriate procurement and provisioning system. These controls focus on critical

risk areas identified by operational risk management, confirmed by executive management and

endorsed by the WRDM internal auditors.

The controls are designed to provide cost-effective assurance that assets are safeguarded and

that liabilities and working capital are efficiently managed. Organisational policies, procedures,

structure and Delegations of Authority provide direction, accountability and segregation of

responsibilities. Management and the WRDM internal auditors closely monitor the controls and

the actions that are taken to correct deficiencies as they are identified.

Risk Management

Risk management is about identifying and assessing key risks, designing and implementing

strategies and processes by which those risks can be managed, and continually reviewing


processes to ensure that risks identified have been mitigated to a level that is acceptable to the

relevant stakeholders. In accordance with this philosophy, the WRDA has recently employed an

approach that incorporates all these principles through the guidance of the AFR committee. By

establishing and adopting this set model, the WRDA has ensured that a consistent and logical

approach to risk management will be applied.

The AFR committee has assessed the register of strategic risks as compiled by the external

auditors and have reviewed it on the basis of the impact it might have on the business.

The risks in the schedule below have been identified and listed in the register of strategic risks.

Processes initiated to address them, however not all could be fully addressed owing to limited

financial and human resource capacity in the WRDA:

Strategic Risks

Strategic Risks identified 2012/13

1 No company secretary to support and guide the activities of the board in order to align strategic objective, stakeholder requirements and legislative compliance.

8 No insurance for Board & Management Indemnity Cover

2 Tax status of WRDA not finalised 9 Inability to access funding over and above those obtained from the WRDM

3 Skills development levies not paid over 10 Potential negative perception of the WRDA performance by stakeholders

4 Inadequate procedures surrounding revenue collection

11 Inadequate branding

5 No fraud prevention plan in place 12 No support systems

6 Lack of backup in case of CEO resignation not in place.

13 Non-compliance with regards to various MFMA and SCM regulations with regards to the supply chain

7 Non-compliance with MFMA reporting deadlines and statutory requirements

14 Status of Plastic Recycling Business not finalised

Sustainability

The Board and management take responsibility for ensuring the implementation of sustainability

(economic, social and environmental) to all business practices. The WRDA aspires to a

compliance approach, which endorses the following principles and commitments:

High standards of integrity and fair dealings in the conduct of the WRDA‟s business


Compliance with both the letter and the spirit of the law

Accountability to the Shareholder and other stakeholders such as regulators, clients,

employees and the business community at large

Commitment to the duty of care, skill and diligence

Embracing the principles of integrity, transparency and accountability

Approved policies and guidelines

Level of application Policy and/or Guideline

Board WRDA Board Charter

Audit, Finance, and Risk Management Charter

Human Resources & Remuneration Charter

Tender and Projects Charter

Management and Staff Delegations of Authority

Conflict of Interest Policy

Code of Conduct

Investment Policy

SCM Policy

Remuneration Policy

Leave Policy

Skills Development Policy

Board Committee Reports

The directors of the West Rand Development Agency regard corporate governance as

fundamental to the success of the business and are fully committed to good governance so that

the Company has a set of predictable processes, customs, policies, laws, regulations and

institutional practices to which it adheres and which affect the manner in which it is directed,

controlled and managed.


WRDA ensures that its processes and practices are reviewed and benchmarked on an ongoing

basis to ensure compliance with legal obligations and those funds are employed in an

economic, efficient and effective manner. Compliance, not only with the letter, but also the spirit

of relevant governance codes and the law, remains a priority for the organization.

The reports from the Board Committees are listed in the following order:

Audit, Finance and Risk Committee

Human Resource and Remuneration Committee

Projects and Tender Committee

Audit, Finance and Risk Committee Report

We are pleased to present our report for the financial year ended 30 June 2013.

Audit committee attendance

The audit committee consists of the members listed hereunder and should meet 4 times per

annum as per its approved terms of reference. During the current year 4 meetings were held.

Audit committee responsibility

The audit committee reports that it has complied with its responsibilities arising from section

166(2)(a) of the MFMA. The audit committee also reports that it has adopted appropriate formal

terms of reference as its audit committee charter, has regulated its affairs in compliance with

this charter and has discharged all its responsibilities as contained therein.

The effectiveness of internal control

The system of internal controls applied by the entity over financial and risk management is

effective, efficient and transparent. In line with the MFMA and the King III Report on Corporate

Governance requirements, Internal Audit provides the audit committee and management with

assurance that the internal controls are appropriate and effective. This is achieved by means of

the risk management process, as well as the identification of corrective actions and suggested

enhancements to the controls and processes.

From the various reports of the Internal Auditors, the Audit Report on the annual financial

statements, and the management report of the Auditor-General South Africa, it was noted that

no matters were reported that indicate any material deficiencies in the system of internal control

or any deviations therefrom.


Accordingly, we can report that the system of internal control over financial reporting for the

period under review was efficient and effective. The quality of in year management and

monthly/quarterly reports submitted in terms of the MFMA and the Division of Revenue Act.

The audit committee is satisfied with the content and quality of monthly and quarterly reports

prepared and issued by the board of the entity during the year under review..

Evaluation of annual financial statements

The audit committee has:

reviewed and discussed the audited annual financial statements to be included in the

annual report, with the Auditor-General and the board;

reviewed the Auditor-General of South Africa's management report and management‟s

response thereto;

reviewed changes in accounting policies and practices (delete if not applicable);

reviewed the entities compliance with legal and regulatory provisions;

reviewed significant adjustments resulting from the audit.

The audit committee concur with and accept the Auditor-General of South Africa's report the

annual financial statements, and are of the opinion that the audited annual financial statements

should be accepted and read together with the report of the Auditor-General of South Africa.

Internal audit

The audit committee is satisfied that the internal audit function is operating effectively and that it

has addressed the risks pertinent to the entity and its audits.

Auditor-General of South Africa

The audit committee has met with the Auditor-General of South Africa to ensure that there are

no unresolved issues.

Chairperson of the Audit, Finance And Risk Committee


Human Resources and Remuneration Committee Report

The Human Resources Committee are established by the West Rand Development Agency

(WRDA) Board in order to assist the board to fulfill the human resources management functions

and responsibilities in accordance with prescribed legislation and corporate governance

principles. The primary objective of the Human Resources and Remuneration Committee is to

assist the Board in discharging effective human resources management by reviewing the

effectiveness of the WRDA‟s human resources management systems, practices and

procedures, and providing recommendations for improvement, and also ensuring compliance to

legislation.

Roles And Responsibilities.

Human Resource and Remuneration Committee duties

The duties are:

Development, revision of the human resources management strategy and recommend

for approval by the Board of Directors.

Oversee the human resources function within the WRDA, ensuring that it is fit for its

purpose and helping to strengthen and develop it.

Oversee and monitor the implementation of human resources policies and procedures.

Establish and regularly review a set of human resource indicators.

Ensure that human resource perspective is represented throughout the strategy and

policy frameworks of the WRDA.

Report to the Board of Directors any material changes to the human resources risk

profile of the WRDA.

Ensure effective implementation of skills development programmes in line with human

resource development strategy.

Ensure equalities in employment and promote diversity.

Oversee, develop and monitor recruitment and retention strategies.

Identify and secure resources to support the development of human resources. Review

the human resources management policy and recommend for approval by the Board of

Directors.

Evaluate the effectiveness of the implementation of the human resources management

policies.

Provide proper and timely reports to the Board of Directors on the state of human

resources management, together with aspects requiring improvement accompanied by

the Committee‟s recommendations to address such issues.

We report that we have adopted appropriate formal terms of reference in our charter. We

further report that we have conducted our affairs in compliance with this charter although there

were limitations due to financial constraints of the entity.

Chairperson of the Human Resources and Remuneration Committee


Projects and Tender Committee Report

The primary objective of the Committee is to assist the board in discharging effective

management of projects and effectiveness of the WRDA‟s project and procurement

management systems, practices and procedures, and providing recommendations for

improvement, and also ensuring compliance in relation to supply chain management and other

relevant legislations.

Our duties are:

• Development, revision of project management and procurement strategy and

policies and recommend for approval by the Board of directors.

• Oversee and monitor the implementation of project and supply chain

management policies and procedures.

• Establish and regularly review a set of project indicators.

• Report to the Board of directors any material changes to projects.

• Ensure effective implementation of projects and supply chain management

policies and procedures.

• Identify and secure resources to support projects.

• Provide proper and timely reports to the Board of directors on the state of

projects and supply chain management, together with aspects requiring

improvement accompanied by the Committee‟s recommendations to address

such issues.

We report that we have adopted appropriate formal terms of reference in our charter. We

further report that we have conducted our affairs in compliance with this charter and the supply

chain policy of the WRDA

Chairperson of the Tender and Projects Committee


3 PERFORMANCE

Key highlights

The agency has fairly managed to keep operational despite the immense challenges it has

faces. The commitment by the shareholder has ensured that there is constant support in critical

operational areas for the agency to continue being a going concern. Furthermore, there was a

measure of normalisation that was created by the Ex-interim board and the acting CEO, with

regards to regularizing the planning and setting of performance objectives of the agency as

required by the MFMA.

During the tenure of the Interim board, the agencies 5 year strategic plan, and SDBIP were

developed for the 2012-13 financial year compared to the 2011-12 financial year, given that the

planning focus of the former were to keep operations active and this is evident in the key

performance areas of the SDBIP.

The main achievement during this reporting period was the normalization of the leadership of

the agency in terms of the appointment of the board in August 2012 and subsequent

appointment of the CEO in March 2013. The board appointments were concluded after a

lengthy and thorough process that was initiated in the previous financial year. This process

besides being in compliance with the Companies Act, was informed by the Turnaround strategy

developed by the Ex-interim board.

Secondly the board undertook an intensive strategic review of the agency and its mandated

functions in conjunction with the shareholder, in a well-attended strategic planning session. The

strategic planning planning process resulted in redefining the mission and objectives of the

agencies and resulted in a refreshed 5 year strategic plan, 3 year business plan and SDBIP for

the 2013-14 financial year and is much in alignment with the requirements set out by the

treasury requirements.

Besides the above, there was a concerted effort on the part of the board and management to

review and where necessary develop guiding policies for corporate governance and operation

processes. The board and committee charters were developed as well as a risk register, which

identified critical areas for intervention. Review of other operational policies was initiated,

especially in terms of the delegations of authority, Supply Chain, Human Resources

Management. In addition the board issued the directive for the development of absent

operational policies such as the IT, communications, Revenue management that are specifically


customized for agency operations because the previously the default position was to utilize

WRDM policies. Finalization and adoption of some these will be in the coming financial year,

owing for the need to ensure that they are properly benchmarked against best practice from

similar organizations.

As stated earlier, the agency is faced with numerous challenges which have been highlighted in

various reports over the past and current financial year. The most pressing of these challenges

identified is in terms of the institutional arrangements, the lack of human and financial capacity.

A number of these challenges have been known to the agency and others identified through the

risk register as well as the audit report from the Auditor General. Although all issues are being

attended to, not all were managed to be addressed in this financial year given the current

constraints and limited time to implement solutions.

The strategy planning session of the agency highlighted that amendments are required to be

undertaken to the classification and ownership of the WRDA. Essentially the agency represents

the entire region and is therefore owned by all the municipalities of the West Rand as

shareholders. An assessment has been done and the following have to be addressed:

Promulgation/or approving By-Law for establishment of the WRDA by District and Local

Municipalities. This is required for the proper enablement of the WRDA as per regulation

and treasury guidelines

Amendment to the share capital and issuing of ordinary shares to all shareholders. This will

also address the ownership aspects of the agency that have created a challenge

Registration and listing of the agency with National treasury as a State Owned Company

(SOC) as per requirement with MFMA and CIPC

Projects ring fencing and clarification on the institutional arrangement with regard to the

current 3 projects in the agencies books. Besides Kathlego Facility, Donaldson Dam and

Plastics are grey areas which need to be verified with the assistance of commercial lawyers

and the district legal unit.

Following the conclusion of the Strategic Planning process and development of the

Business Plan, the Service Delivery Agreement (SDA) has to be concluded with the

shareholders. The current SDA is outdated and needs review.


Operational highlights

Assessments were undertaken on a number of areas that were observed in the operational

environment of the agency and corrective measures were identified to be instituted.

Management processes have been strengthened in terms of a number of operational areas

which were previously identified in audit and performance reports of the agency as follows:

Weekly management meetings have been implemented and regularized since April 2013,

this has improved information flow within the agency and has assisted in the proactive

identification of project related risks;

A registry establishment exercise has been initiated to improve document control for head

office and agency projects. This will assist in improving the agencies compliance with the

records management requirements as stipulated in the Records Management Act.

Furthermore a process to review all files with the intention to take stock and list properly all

files and contents within was started. The exercise has already yielded early results as there

were volumes of similar documents in differently marked files. The duplicate documents will

be archived as per requirements of the Act and also in line with disaster recovery practices

to archive records offsite. In addition the proper document management will improve issues

of access to information as prescribed by the PAIA.

The financial management aspects of the agency have been identified as a crucial area for

intervention. In this financial year, there was migration from the BIQ to Munsoft financial

management system by the WRDM and by extension the agency as well. Therefore

capacity to handle the financial management function of the agency has been prioritized.

The IT and communication Infrastructure requirements have been specified in terms of the

systems and support measures required by the WRDA. The IT plan will be used for the roll

out in the agency and project sites. Furthermore in trying to manage costs, a single

communication interface will be implemented that connects the project sites to head office

for better management and reduced costs for communication.


Project highlights

The WRDA currently consists of three projects, namely, Plastic Recycling Centre in Westonaria

and the Mohlakeng Buy Back Centre; Donaldson Dam Resort and the Katlego Cultural Facility.

All three of the projects are, in their current form, unsustainable and are under significant

financial strain. Decisions have been taken on a turnaround or exit strategy for each project, and

of particular importance is to ensure the facilities are adequately funded and maintained and are

fit-for-purpose.

Donaldson Dam

The Donaldson Dam Resort is a municipal recreation facility that was provided on a goodwill

basis by the mines in the area in 1953. Previously the facility was under the umbrella of the

Western Regional Council Services (WRCS) It consists of portion 29 Gemspost 288 IQ (116.5

hectares) and portion 1 Nelshoogte (7.4 hectares) for total of 123.9 hectares. In terms of

approved land use, the property is zoned as an enclosed leisure area. (Surface Rights Permit

No 41/1963), besides the resort, 3900 sqm is zoned for restaurant and fresh produce

market. (Mining Rights Act 1967, Grant No 6.70)

Donaldson Dam is located in the Westonaria Local Municipality. Bekkersdal and Mohlakeng

townships in the Southern and the Western side border the Dam. The other sides of the Dam

are covered by farming and agricultural activities council. Further the unfenced portion of

Donaldson Dam, where the gliding airstrip is located has been invaded by squatters, which is

the southern side of the facility. Donaldson Dam is supplied by water from the surrounding

mines. Currently the Dam is divided into two portions referred to as the bottom lake and the top

lake. A wall divides the two lakes. The bottom lake is currently in use by non-members who

pays an entrance fee to catch and release Carp.

Over the past years and including this financial year, there have been attempts to rejuvenate the

facility by attracting an investor/developer to refurbish and operate Donaldson Dam. This

process has largely been unsuccessful. The latest round undertaken, the technical evaluation

for the tender issued for the refurbishment of Donaldson Dam was completed, and the results of

the technical evaluation were not positive given the quality of proposals received. Given these

outcomes, the process was terminated and a different approach will be taken in the coming

financial year, to rather instigate redevelopment incrementally and apply a multi concessionary

model to crowd in interested enterprises in the leisure and tourism industry.


An assessment of the state of infrastructure at Donaldson dam was conducted, and the

assessment report has provided basic estimates on the cost to bring the facility to a decent

operating level. As is the facility is in a shocking state of dilapidation. The major concern is the

breach of the perimeter fencing which has been considerably scavenged in some sectors,

posing liability risks for the agency. Furthermore a number of buildings that were previously in

place have to be rebuilt and refurbished.

There are a number of gaps in compliance issues that have to be addressed at the facility,

notably the issue of safety and environmental management. Solutions to these are being

investigated and may involve other relevant parties/District Divisions with the capability to

support the agency in relation to the compliance gaps identified.

The controls implemented at the facility have been identified for enhancement to ensure that

shortcomings that were identified by the audit report are not repeated. A solution has been

identified to automate entry and provide real-time revenue reconciliation as well as surveillance

of the gate post. Implementation will be effected in the coming financial year

The tariffs and admissions policy of the facility will be reviewed, firstly to comply with

requirements of the MFMA in terms of publicizing the tariff structure and secondly, with regards

to admissions to allow for restrictions to be applied to patrons entering and leaving the facility.

This is necessitated by the fact that the management has been made aware by the public that

some patrons are entering with firearms, which are prohibited and that there has been theft of

fish specimen by some anglers.

There are number of considerations that have to be taken into account in terms of the work that

is required to turn the fortunes of the facility. These need to be viewed from a total solution

perspective as they have a bearing on the involvement of the agency with the facility.

Demand for leisure activities to be explored in respect of the types of leisure activities to be

engaged in. Reconfiguration of specifications must be structured so as to improve the

prospects of possible partnerships to the benefit of the community. Whether it be with fishing

and sporting associations to host regular events and to bring on board the disadvantaged

community to participate in these sporting codes. Furthermore given the history of the facility

with the mines in the area a possible avenue for worker recreation clubs can be arranged to

be rooted the facility as well as worker outings. This can provide a considerable revenue

base for the facility


Environmental Management of the surrounds, the wetlands and waterways will be crucial.

There are two sources of contamination which must be actively managed. Ecoli bacterial

contaminated water (from raw sewerage) flows from Mohlakeng and the Flip Human

Sewerage processing plant into the dams. (Both Municipal responsibilities which must be

addressed). The heavy metals from the mines which has contaminated the sediment with

uranium. The above contamination poses a serious health risk which impacts on the dam‟s

feasibility and increases the risk profile of the WRDA, in relation to the Water Act.

Encroaching urbanization to be addressed, if the population surrounding the facilities are not

accommodated in some way the perceived outlook will be that it‟s a play pen for the more

privileged and it will be vandalized even more. This will as alluded earlier put off any

potentially interested parties to want to be involved with redevelopment of the facility

There are considerations which have been adopted by management on proposals which will

provide redevelopment direction for the facility and to lead to higher patronage. There are

sources identified in which funding can be raised for some of the proposals especially from

National and Provincial Government given the focus on tourism infrastructure and

environmental management. Furthermore the unbundled approach to multi-concessioning

commercial opportunities may be enticing for developers wary of taking the huge risk associated

with taking on the entire development.

Katlego Cultural Facility

The project Katlego Cultural Facility (KCF) Project is located within the Cradle of Humankind,

world Heritage Site (COHWHS) at the Rhino and Lion Nature Reserve (RLNR) on land that was

donated to the West Rand District Municipality (WRDM) by the RLNR. The exact size of the

donated land is 3.4590 Hectares, comprising of portion 68 of the farm Kromdraai 520 JQ.

The KCF is a venture jointly initiated by the RLNR and WRDM as part of their on-going Local

Economic Development initiative and will contribute to the establishment of a self-sustaining

SMME tourism business next to the RLNR.

An infrastructure assessment of the Katlego Cultural Facility (KCF) has been undertaken and

there are some service utilities which are not present at the facility. The estimated costs to

extend those utilities to the facilities to the site of the facility have been calculated. Due to phase


1 of the facility having been constructed a while back, there is a need to undertake maintenance

work to bring it close to operational readiness.

The institutional arrangements for the KCF special purpose vehicle were not finalized this

financial year and a process has been mapped with RLNR to develop a two tiered institutional

model, that will separate the property holding and operations, the former will involve the WRDM

and RLNR as shareholders. The institutional model and operational model will be finalized and

implemented in the 2013-14 financial year.

Enquiries have been received from parties interested in utilising the facility for commercial

operations and they have been duly registered to be invited once the facility is ready for market.

The probability will be to offer the use of the facility on a concessionary basis and the final

model to be applied will require the approval of all stakeholders involved in the facility, including

the community beneficiaries that will be integral to the management and operations of the

facility.

Plastics Recycling

The plastic recycling initiative was setup to gain access in the recycling, supply and distribution

of plastics. The objective of the project is to address the imbalances of the past and is meant to

encourage empowerment of historically disadvantaged communities. The aims are to contribute

to the following goals of WRDM:

to improve the District‟s waste management services and the District‟s environmental

sustainability,

to reduce unemployment and poverty, and

To further facilitate economic empowerment of its people.

The project produces plastic refuse bags through the processing of waste plastics. The process

entails the sorting of plastics into various types and grades, washed and fed into a granulator,

producing fine granules. The granules are fed into an extruder, which produces plastic pellets.

The pellets are fed into a processing machine, where the pellets are melted, filmed, rolled and

cut into bags.


The plant is supplied by registered waste picker cooperatives. When fully productive, registered

waste collection companies / co-operatives will provide plastic material to the factory. The

project in its current form has created 14 permanent and 10 casual jobs. Communities from

Bekkersdal, Simunye, Mohlakeng and Westonaria collect plastic bags which are then sold to the

plant

Previously the Plastics Recycling Factory (RRF) and the Buy Back Center (BBC) were

considered separate projects, however these facilities should be considered as one system as

is the case internationally. As part of the turnaround to improve the value proposition of these

projects, they will now be considered as a Municipal Environmental Recycling Cluster (MERC).

The RRF security requirements have been reviewed since the theft of the electrical cabling and

a remote security solution has been approved for implemented as well as surveillance

equipment linked to a security control room.

The process of procuring the electrical cabling has been initiated and District Supply Chain

Management is assisting the agency in this regard. However delays have been encountered

because the service providers that responded to the bulletin are apparently not in compliance.

The Supply Chain Management Office has acted to resolve this challenge and to fast track

procurement of the required cabling as this delay is affecting productivity of the factory.

The BBC construction in Mohlakeng is bedevilled with many challenges and a thorough review

has been undertaken and issues for remedy have been identified. The institutional as well as

project management challenges will be rectified as relevant parties involved have been engaged

and solutions have been identified. The remedies will call for some of the current arrangements

to be curtailed to expedite completion of the BBC within a reasonable cost frame. Unfortunately

given the form of contractual arrangement (turnkey contract), the agency cannot intervene

unless if to rescind the contract based on proper evidence of lack of delivery and/or changes to

scope of work with the current service provider.

The intent behind the project was well meaning, however the manner in which it was structured

has created most of the challenges experienced. The project has to be successfully turned

around to rebuild the credibility of the agency as a project implementor as well to place the

agency at the forefront of Green IQ, a key programme of the WRDM.

In light of this it is important to review the agencies involvement in the project and the outcomes

which is intended. It is very clear that the agencies involvement in this project was to be catalytic


in nature and lead to the emergence of viable recycling sector and associated industries in the

region. The following proposal is therefore to be considered in terms of the agencies

involvement that would be underpinned the basis of providing interventions in three areas –

Sector support – this is to differentiate the level of intervention in order to ensure that macro

issues are addressed. Therefore in this regard the project should be redefined rather as a

programme i.e. a Municipal Recycling Cluster (MERC) as stated earlier. In this instance two

sectors are being support being the recycling and plastics sector

Enterprise development – to ensure economic transformation and emergence of SMME and

Cooperatives. The agency will be to transform the current Plastics Factory into an incubator

for plastics related industries. The opportunity exists to develop a base of suppliers that can

be inducted into government and private (mines) procurement programmes. Furthermore

other implementation support partners can be roped on board to assist with the operations

of the incubator and to provide on-site incubation support.

Economic Infrastructure – it is noted that productive infrastructure is in short supply to

support emerging enterprises. Therefore the MERC will be providing an intervention is this

area of ensuring that productive economic infrastructure is provided.

The turnaround is within the reach of the agency and furthermore this will provide an opportunity

to focus on sector and enterprise development. There are funds identified at national institutions

that will be applied for, in order to expand the scope project dependent on the overall sector

strategy and business model presented.

Investment Facilitation

This function of the agency for this financial year was largely demand driven and the provision

of this service was driven through enquiries received or referred by other departments in the

municipalities and provincial departments. This situation of reacting and not being proactive was

largely to the capacity limitations in the agency and lack of budget to undertake investment

promotion activities. Furthermore the operational priorities were on normalization of operations

and developing turnaround solutions for the agencies current projects. None the less, there was

investment facilitation activities described below:


Croplands Pty Ltd, a local subsidiary of an Australian based farming implements

manufacturer and assembler approached the agency with a view of establishing its South

African plant in the West Rand. They were assisted with identifying possible locations for

their factory and wit access to the municipalities of Westonaria and Randfontein.

MIA Musical Instruments, a local startup company, enquired on establishing its base of

operations in the West Rand. The company has received commitments from the Department

of Trade and Industry and a majority of their output is destined for export markets. The

company as part of its model will be developing fabrication skills targeting youth. The

agency facilitated access for the company with the municipality of Randfontein for facilities.

Genan Africa Pty Ltd, a local subsidiary of Danish based recycling solutions company,

approached the agency to enquire on possible land availability and incentive support. The

company intends establishing a tyre recycling facility. The agency identified land parcels and

facilitated visits to sites in Westonaria and Mogale City municipalities.

Msibi Holdings, a local company with Canadian technology partners, approached the

agency with the view of establishing a tyre recycling depot and pyrolysis plant. The company

was facilitated with access to Westonaria Local Municipality.

Partnerships

The agency has continued to engage with various potential partners in the implementation of its

mandate. There have been various engagements with public and private sector organisations to

explore mutually beneficial projects. In this financial year discussions took place with the

following organisations:

Siyafunda, a non-governmental organization focusing on IT skills development

Chamdor Training Facilities, a non-governmental skills training facility

Gauteng Department of Economic development – Green Economy Programme Office

The Gauteng Growth and Development Agency

In terms of the GGDA, it has prioritised the establishment of the Gauteng Investment Centre

(GIC) as one its implementation programmes for trade and investment promotion. The GIC has

been conceptualised as a one-stop shop for investor engagements and aftercare services.

During the month of March, the GGDA engaged the WRDA with the intention to seek

participation of the West Rand region in the GIC. The model for the GIC is to create a marketing


presence of all Gauteng regions at the region and furthermore to have GIC satellites in the

regions set up as part of the expanded roll out. . A draft MoU which covers all issues of

cooperation has been drafted by the agency and submitted to the GGDA for their consideration.

It will be finalized for adoption and implementation in the next financial year as it is awaiting

review from the GGDA legal department.

Reporting

2012/13 budget adjustment.

The WRDA budget adjustment was done, approved by the board and submitted to the

WRDM.

Mid-year budget 2012/13 and performance assessment (MFMA section 88).

Completed and approved by the board and submitted to the WRDM.

MFMA section 87 monthly reports.

All 12 twelve monthly reports were compiled and submitted by WRDM on behalf of the

agency to the WRDM since the resignation of the agency‟s bookkeeper in 2012.

Section 80 LED reports

All 12 monthly reports were compiled and submitted by the WRDA to the LED Unit of the

WRDM.


4 ORGANISATIONAL DEVELOPMENT

Staff Establishment

The most critical challenge currently facing the WRDA is capacity in terms of financial and

human resources as well as establishment design flaws. These have been identified and a

process is underway for 2013/14 to address these problems with the shareholders, which are all

municipalities in West Rand.

5 staff members are in the employ of the WRDA; namely:

Chief Executive Officer.

Personal Assistant.

Administrative Officer.

Project Assistant.

Cleaner.

The WRDM has seconded a senior manager to assist the Plastics Project

Current organizational structure

As stated earlier in this document, a strategic review took place and within the context of the

WRDA strategic and tactical framework the following figure reflects the recommended reporting

level 1 and 2 functional design believed to be most appropriately matched to ensuring delivery

of the strategy, as from 2013/14:

CEO

Project Management

Project Management

Finance and administration

Board of Directors

Bookkeeper

Receptionist

Management Accounting

Research and

Information

Enterprise Development

Investment & Trade

promotion

Project Management

Company Secretary

Internal Audit

Personal Assistant


LED

Departments

SHAREHOLDER

(District and Local

Municipalities)

CITY MANAGERS

Audit and Risk Committee

HR and REMCO Committee

Project and Procurement

Committee

Oversight, Leadership and Control of Internal Audit Services and coordination of JRAS Services in order to provide the Board with the assurance that JCPZ is a well governed and compliant organisation.

Oversight, Management and Control of Board and Committee support and administrative services and the provision of Legal advice and support to ensure the effective functioning of the Board.

Company Secretary

Internal Audit

CHIEF EXECUTIVE OFFICER

WEST RAND DEVELOPMENT AGENCY

WRDA Board

• Business Integration and Optimisation and ICT

• Marketing and communications

• Human Capital Management and Development

• Performance Management and Development

• Administration Services

Organisational Effectiveness and Corporate Support

• Budgeting and Master Budget Management

• Financial Accounting

• Supply Chain Management and targeted procurement (targeted groups)

• Contract Management

Financial Management and Control

• Supplier development and export readiness

• Export promotion and initiatives to reduce the cost of trading

• Foreign and local investment facilitation

• Support to business establishment and functioning

• External commercial funding and partnerships

Trade and Investment Promotion

• Integrated Business Services

• Targeted sector support interventions and incentives

• Identification and packaging of development opportunities

Sector Support

Recommended WRDA Reporting Level 1 and 2 Structure

Oversight, Management and Control of strategic support to the CEO and his team to achieve the strategic objectives of WRDA by focussing on:• Research and Knowledge Management• Integrated Business Planning, Performance

Monitoring and Reporting, • Risk and Compliance Management• Service Delivery Monitoring and TQM• IGR

Business Intelligence,Monitoring & Evaluation

and Assurance

• Implement strategic infrastructure interventions

• Project Planning, Oversight and Management

• A Centre of Excellence, providing capacity and competence in project management

Infrastructure Project Facilitation

Sick leave taken

It can be noted from the table above that days absent due to sick leave is minimal in the

Agency. This is due to dedication of staff as they do perform their duties even when they are not

well.

Number of days and Cost of Sick Leave (excluding injuries on duty)

Salary band Total sick leave

Proportion of sick leave without medical

certification

Employees using sick

leave

Total employees in post*

*Average sick leave per

Employees

Estimated cost

Days % No. No. Days R'

Lower skilled (Level 15-13) 12 1% 1 1 3.00 2839

Skilled (Level 13-11) 7 4% 1 1 1.75 3052

Highly skilled Production (Level 11-8)

5 0% 1 1 1.25 2784

Highly skilled Supervision (Level 8-6)

1 1% 1 1 0.25 1114

Senior Management (Level 6-3)

0 0% 0 0 0.00 0

MM and S57 3-1 0 0% 0 0 0.00 0

Total 25 1% 4 4 6.25 9788

5 PERFORMANCE SCHEDULES (SDBIP)

Strategic Goal 1: To mobilize resources for economic development projects/ programmes through partnerships

Strategic

objective/

KPA

Performance

Indicator Baseline

Portfolio of

Evidence

Annual

Target

Annual

Actual

1st

Quarter 2nd

Quarter 3rd

Quarter 4th

Quarter Explanation of

variance

Improvement Plan

Planned Actual Planned Actual Planned Actual Planned Actual

Leveraging

Funds

Project

Funding

Targeted

R3

million

Funds

transferred

R10

million 0 R10m 0

IDC commitment

to fund the agency

projects not

released due to

critical miles not

being met, i.e. an

independent

financial system

Milestones set by IDC

will be achieved by

establishing

Independence of the

agencies financial

management

Attracting

expertise

Attracting

project

expertise /

skills

New

Appointment

of skilled

Project

Manager

1 0 1 0

No budget

available

Staff establishment

concluded in budget plan

submitted subject to

approval by shareholder

Asset

mobilization

Assets

mobilization 2

Proof of new

assets

acquired

2 0 2 0

No capital budget

approved

Budget plan submitted

includes capital budget


Strategic Goal 2: To provide trade & investment promotion support in the region.

Strategic

objective/

KPA

Performance

Indicator Baseline

Portfolio

of

Evidence

Annual

Target Actual

1st

Quarter 2nd

Quarter 3rd

Quarter 4rd


variance

Improvement Plan


Investment

promotion

Rand Value

of new

investments

planned

New 20m 0 10m 0 10m 0

Commitment was

received for

project supported

by agency

(agriyouth) to

tune of R30

million but funding

will be going

directly to project

management

company -

COAAC

Agency will

become co-

signatory for future

project funding

raised depending

on institutional

model agreed

No. of new

investment

planned to be

facilitated

New

No. of

new

investment

plans

4 4 2 2 2 2

Trade

Promotion

No. of

Exporters

development

planned

New

No. of

new

developm

ent plans

2 0 1 0 1 0

Lack of resources

- no database of

identified

enterprises ready

for export

development

Develop database

of export ready

companies residing

in the West Rand

and registration

portal

Rand value of

exporters

planned

New

Rand

value of

amount

facilitated

5m 0 5m 0

No exporters

assisted due to

lack of capacity in

agency

Establish

partnership with

provincial agency

to support function

for exporter

assistance

Exporters

planned to be

exposed to

new markets

versus

actual(%)

New

No. of

exporters

exposed

to new

markets

2 0 2 0

No exporters

assisted due to

lack of capacity in

agency

Establish

partnership with

provincial agency

to support function

for exporter

assistance


Strategic Goal 3: Projects management support services

Strategic

objective/ KPA

Performance

Indicator Baseline

Portfolio of

Evidence

Annual

Target Actual

1st

Quarter 2nd

Quarter 3rd

Quarter 4rd


variance

Improvement Plan


Project

planning

management

No of New

project

opportunities

identified

New New project

plans 4 2 0 0 1 1 1 1 2 0

Reconfiguration

of existing

projects

Donaldson Dam

and Plastics

Factory and BBC

into regional

Municipal

Environment

Recycling Cluster

- created new

project

opportunities

Strategic review of

the agency has

highlighted area of

focus for project

development to be

aligned with

WRDM GDS,

Green IQ and

Tourism strategies

No. of

Project

scoped

New Project plans 3 3 1 1 2 2

No of Project

feasibility

assessment

planned

New

Project

feasibility

plans

2 2 1 1 1 1

Project

Implementation

management

% Project

deliverables

completion

New

Stage of

project

completion

report

100% 0 100% 0

Not completed

due to contractor

failing to perform

based on cost

escalations

Review of contract

with contractor and

addressing project

requirements to

keep cost down

Project

budget

variance(%)

New

Project

Expenditure

report

8% 0 8% 0

Project cost has

escalated due to

onerous

conditions for

land availability

on Mohlakeng

BBC by

Randfontein LM

Review of land

availability

conditions and

involve

Randfontein LM as

partner as opposed

to Landlord

Project

objectives

met(%)

New Project report 80% 0 80% 0

Not met due to

stoppage by

contractor and

dispute on project

budget

escalations

Review contract

with contractor on

delivery milestones

and terminate as

advised by

technical support

project manager



Strategic

objective/ KPA

Performance

Indicator Baseline

Portfolio of

Evidence

Annual

Target Actual

1st

Quarter 2nd

Quarter 3rd

Quarter 4rd


variance

Improvement Plan


Post project

implementati

on support

facilitation

New Project report 100% 0 100% 0

Project not

completed due to

contractor failing

and escalated

costs

Review contract

and include

Randfontein as

partner

No of

Machines

delivered

7 Delivery

notes 7 7 4 4 3 3

Plastic

Recycling Plant

Installation of

ICT hardware New

Installation

report 100% 50% 50% 0% 50% 50%

Review of model

has changed total

installation

requirements to

50%.

Assets will now be

by WRDA

Finalization of

the

Institutional

arrangements

(%)

New Signed

agreements 100% 0 100 0

Model reviewed

and incubator will

be established

instead

Incubator model to

be developed for

plastics industries

in next fin year

Operationaliz

ation of the

machines (%)

New Progress

report 100% 10% 20% 10% 20% 0 60% 0

Lack of electricity

at factory has

delayed

operationalisation

Procurement and

installation of

electrical cabling

Revenue

generated

from sales of

refuse bags

30,000

Revenue

collection

report

400,00

0 0 50, 000 0 100, 000 0 250,000 0

Lack of electricity

at factory has

delayed

production

therefore no

revenue could be

generated

Procurement and

installation of

electrical cabling

Donaldson

Dam

Revenue

generated

from rental &

entrances

171,000

Revenue

collection

report

180,00

0

275,025.

68 45,000 54,787 45, 000

113,

037 45, 000

46,

541.68 60,660 60,660

Improved controls

led to

improvement of

collections, as

previous

caretaker was

expelled.

Appointment

of the

developer

New Appointment

letter 1 0 1 0

Poor tender

proposals were

received that

were not meeting

the requirements,

therefore the

tender had to be

cancelled



Strategic

objective/ KPA

Performance

Indicator Baseline

Portfolio of

Evidence

Annual

Target Actual

1st

Quarter 2nd

Quarter 3rd

Quarter 4rd


variance

Improvement Plan


Buy Back

Center

%

Construction

of the

building

completed

New Project report 100% 0 100% 0 100% 0

Not completed

due to contractor

failing to perform

based on cost

escalations

Review of contract

with contractor and

addressing project

requirements to

keep cost down

No of jobs

created New

Job creation

report 5 20 5 20

More labour

intensive methods

were used and

community was

utilized as part of

EPWP campaign.

Finalization of

the

Institutional

arrangements

(%)

New

Institutional

arrangement

report

100% 0 1 0

Institutional model

not properly

defined thereby

impacting on

arrangements

with key

stakeholders ie

Randfontein and

users

Review of land

availability

conditions and

involve

Randfontein LM as

partner as opposed

to Landlord

Katlego

Cultural

Facility

Appointment

of the

operator

New Appointment

letter 1 0 1 0

Differences with

project partners

stalled process to

appoint operator

Model of project

institutional

arrangements to be

reviewed to

minimize difference


Strategic Goal 4: To ensure business excellence within the WRDA

Strategic

objective/

KPA

Performance

Indicator Baseline

Portfolio of

Evidence

Annual

Target Actual

1st

Quarter 2nd

Quarter 3rd

Quarter 4rd


variance

Improvement Plan


Business

management

Organisation

structures

functionality

(%)

New Functionality

report 100 40% 100% 40%

Staff complement

largely support

staff, one

seconded from

WRDM viz a viz

approved

structure

Budget plan

submitted to

WRDM includes

staff establishment

costs

Performance

against

reviewed

SLAs (%)

New Performance

report 80% 0 80% 0

SLA was not

updated with

shareholders

Submission of 3

year business plan

and SDBIP in order

for SLA to be

drafted

No of MOU

/agreements

/SLAs

2

Singed

agreements/

MOUs/SLAs

4 0 2 0 2 0

Engagements

took place with

stakeholders,

Chamdor, GGDA,

Siyafunda but

agreements only

in draft

Finalize draft

agreements and

signoff in next

financial year

New

stakeholders

forum

established

2 Stakeholders

forum reports 2 0 1 0 1 0

Unable to

implement due to

changed strategic

priorities

Key sector

stakeholders to be

identified and

Sector groups

formed in coming

year

No of clean

audit action

plan

1 Audit action

plan 1 1 1 1

Business

targets

met(%)

New Business

target report 80% 0 80% 0

No business

targets defined on

APR

Project operational

targets will be set

for each project

Audit issues

addressed

(%)

90% Audit action

plan report 100% 80% 100% 80%

Due to capacity

challenge not all

actions could not

be undertaken

Audit plan actions

will be managed

monthly with

support of WRDM

internal audit



Strategic

objective/

KPA

Performance

Indicator Baseline

Portfolio of

Evidence

Annual

Target Actual

1st

Quarter 2nd

Quarter 3rd

Quarter 4rd


variance

Improvement Plan


Approved&

budgeted

positions

filled on a

new structure

(%)

New

Report on

positions

filled

100% 100% 100% 100%

No of skills

development

plans

New

skills

development

plan

1 0 1 0

No skills plan To be developed in

line with redefined

operations of

agency

Grievances/

disputes

lodged

versus

attended to

(%)

New Grievance/dis

putes report 100% -. 100% -

No grievances

and disputes

received.

Employment

equity targets

met(%)

New Employment

equity report 80% 0 80% 0

No equity targets

defined or

planned

Equity target will be

addressed in

Business plan

Performance

review

frequency(n)

4

HR Sub-

committee

performance

report

4 0 1 0 1 0 1 0 1 0

No performance

agreements in

place due

absence of

performance

management

policy

Development of

Performance Policy

to be included in

HR policy. Proper

job functions for

staff to enable

performance

agreements to be

in place

No. of Mid-

term report

submitted to

the board(n)

1 Minutes of

the board 1 1 1 1

Financial

Management

Capital

budget

variance (%)

New Financial

report 8% 0% 8% 0%

No capital budget

was approved



Strategic

objective/

KPA

Performance

Indicator Baseline

Portfolio of

Evidence

Annual

Target Actual

1st

Quarter 2nd

Quarter 3rd

Quarter 4rd


variance

Improvement Plan


Operational

budget

variance (%)

New Financial

report 8 8% 8%

Budget

allocations not

optimized to

areas required

and virements

were requested

but limited to 8%

due to WRDM

virement policy

Budget plan

submitted to

WRDM with all

required item

allocations

motivated

Products

required

versus

procured

within agreed

upon time

(%)

New

Annual

Procurement

report

80% 0 80% 0

No procurement

plan in place but

required

procurement took

place in cost

centres

Procurement/dema

nd forecast to be

developed for next

financial year

No. of Sec 87

reports

submitted to

shareholder(n

)

12 Section 87

reports 12 12 3 3 3 3 3 3 3 3

No. of

adjustment

budget

submitted to

the board(n)

1 Adjustment

budget 1 1 1 1

ICT

Management ICT plan 1 1 1 1 1

Infrastructure

management

No of Assets

registered 1 Asset register 1 1 1 1

Review of

Assets 2 Assets report 2 0 1 0 100% 0

Access to

munsoft not

available during

Q2 therefore

assets report

could not be

generated, for Q4

manual report

generated

Access to munsoft

to be established



Strategic

objective/

KPA

Performance

Indicator Baseline

Portfolio of

Evidence

Annual

Target Actual

1st

Quarter 2nd

Quarter 3rd

Quarter 4rd


variance

Improvement Plan


information

management

Website

updated 1 Update report 2 1 1 0 1 1

Change over from

BiQ to Munsoft

resulted in the

VPN being

blocked

Establish own

domain in order to

minimise VPN

dependence


Strategic goal 5 :To ensure Good Corporate Governance

Strategic

objective/

KPA

Performance

Indicator Baseline

Portfolio of

Evidence

Annual

Target Actual

1st

Quarter 2nd

Quarter 3rd

Quarter 4rd


variance

Improvement Plan


Good

Corporate

Governance

Appointment

of new board

members

4 Appointment

letters.advert 9 9 9 9

Appointment

of the CEO 1

Appointment

Letter 1 1 1 1

No of board

meetings 4

Board

minutes 4 4 1 1 1 1 1 1 1 1

No of Board

packs 4 Board pack 4 4 1 1 1 1 1 1 1 1

No of sub-

committee

meetings

New

Signed

register &

report/minute

s

9 6 3 3 3 3 3 3

New Board only

appointed in

August.

Committees

established from

Q2.

No of sub

committee

packs

New

Sub

committee

packs

9 6 3 3 3 3 3 3

New Board only

appointed in

August.

Committees

established from

Q2.

No of

strategic

plans

1 strat plan

report 1 1 1 0 1

No of audit

committee

reports

New

Audit

committee

reports/minut

es

4 3 1 1 1 1 1 1

New Board only

appointed in

August.

Committees

established from

Q2.

No of Risk

management

workshop

New Workshop

report 1 1 1 0 1

The Risk

Workshop took

place on 14 June

2013. delay due

to finalizsation of

agency strategic

and annual plan

No of Project

&

Procurement

Committee

reports

New

Project &

procurement

committee

report/minute

s

4 3 1 1 1 1 1 1

New Board only

appointed in

August.

Committees

established from

Q2.


Strategic goal 5 :To ensure Good Corporate Governance

Strategic

objective/

KPA

Performance

Indicator Baseline

Portfolio of

Evidence

Annual

Target Actual

1st

Quarter 2nd

Quarter 3rd

Quarter 4rd


variance

Improvement Plan


No of HR &

Remuneratio

n committee

reports

New

HR &

remuneration

committee

reports/minut

es

4 3 1 1 1 1 1 1

New Board only

appointed in

August.

Committees

established from

Q2.

Approved WRDA Report

Documents

Transcript of Approved WRDA Report