example.com · households with access to sanitation 82.23 % 78.63 % 79.14 % 79.21 % 722,029...

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Annexure A: City of Tshwane Detailed Performance

report on the implementation of the IDP and SDBIP

Quarter 4 of FY 2016/17 and Interim Annual Performance Results

Organisational Performance 7/10/17 MFMA s52 report and interim

MSA s 46 report

ANNEXURE A14

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Contents

1 PURPOSE................................................................................................................................ 5

2 STRATEGIC OUTCOMES ON THE IDP .................................................................................. 5

3 LIMITATIONS AND REPORTING REQUIREMENTS ............................................................... 5

3.1 REPORTING REQUIREMENTS ....................................................................................... 5

3.2 LIMITATIONS.................................................................................................................... 5

4 PERFORMANCE AGAINST SERVICE DELIVERY TARGETS IDP AND SDBIP ..................... 6

4.1 INTERIM ANNUAL PERFORMANCE RESULTS ON THE IDP TARGETS ....................... 6

4.2 PERFORMANCE ON THE SDBIP TARGETS ................................................................... 9

4.2.1 QUARTER 4 SDBIP PERFORMANCE SUMMARY.................................................... 9

4.2.2 INTERIM ANNUAL PERFORMANCE RESULTS ON THE SDBIP ........................... 10

4.2.3 DETAILED PROGRESS AGAINST THE SDBIP SCORECARD ............................... 11

4.2.4 REASONS FOR UNDERPERFORMANCE AND CORRECTIVE MEASURES ......... 18

5 SERVICE DELIVERY CHALLENGES .................................................................................... 20

6 FEEDBACK FROM DEPARTMENTAL BUSENESS PLAN REPORTS .................................. 21

6.1 OFFICE OF THE CITY MANAGER ................................................................................. 21

6.2 OFFICE OF THE EXECUTIVE MAYOR .......................................................................... 21

6.3 GROUP COMMUNICATION AND MARKETING ............................................................. 22

6.4 CITY STRATEGY AND ORGANISATIONAL PERFORMANCE ...................................... 22

6.5 METRO POLICE ............................................................................................................. 22

6.6 EMERGENCY MANAGEMENT SERVICES .................................................................... 22

6.7 OFFICE OF THE SPEAKER ........................................................................................... 23

6.8 GROUP HUMAN CAPITAL MANAGEMENT ................................................................... 23

6.9 ECONOMIC DEVELOPMENT AND SPATIAL PLANNING .............................................. 23

6.10 HEALTH .......................................................................................................................... 26

6.11 COMMUNITY & SOCIAL DEVELOPMENT SERVICES .................................................. 26

6.12 HOUSING & HUMAN SETTLEMENT .............................................................................. 26

6.13 UTILITY SERVICES ........................................................................................................ 27

6.14 REGIONAL OPERATIONS & COORDINATION .............................................................. 27

7 PERFORMANCE OF MUNICIPAL ENTITIES ........................................................................ 29

7.1 BACKGROUND .............................................................................................................. 29

7.2 PERFORMANCE OF MUNICIPAL ENTITIES ................................................................. 29

7.2.1 TEDA ....................................................................................................................... 33

7.2.2 HCT ......................................................................................................................... 35

7.2.3 SWA ......................................................................................................................... 39

8 PPERFORMANCE ON THE CAPITAL PROJECTS ............................................................... 40

8.1 ANALYSIS PER DEPARTMENT OR CLUSTER ............................................................. 44

8.1.1 CITY MANAGER ...................................................................................................... 44

8.1.3 COMMUNITY & SOCIAL DEVELOPMENT SERVICES ........................................... 44

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8.1.4 COMMUNITY SAFETY ............................................................................................ 47

8.1.5 ECONOMIC DEVELOPMENT & SPATIAL PLANNING ............................................ 48

8.1.6 ENVIRONMENT & AGRICULTURE ......................................................................... 50

8.1.7 GROUP FINANCIAL SERVICES.............................................................................. 51

8.1.8 GROUP PROPERTY ............................................................................................... 51

8.1.9 HEALTH ................................................................................................................... 52

8.1.10 HOUSING & HUMAN SETTLEMENT ....................................................................... 53

8.1.11 REGIONAL OPERATIONS & COORDINATION ....................................................... 58

8.1.12 ROADS & TRANSPORT .......................................................................................... 59

8.1.13 SHARED SERVICES ............................................................................................... 65

8.1.14 UTILITY SERVICES ................................................................................................. 68

9 CONCLUSION AND RECOMMENDATIONS ......................................................................... 75

APPENDIX A: CAPITAL PROJECTS FUNDS TRANSFERS DUE TO ADUSTMENTS ................. 76

List of tables

Table 1: Interim annual performance on the IDP targets for the 2016/17 financial year ................... 6

Table 2: Quarter 4 and interim annual performance against the SDBIP targets for the 2016/17

financial year ................................................................................................................................. 11

Table 3: Corrective measures for non-achieved SDBIP targets ..................................................... 18

Table 4: Service disruptions .......................................................................................................... 20

Table 5: Cable theft ....................................................................................................................... 21

Table 6: Service Delivery highlights for the ROC ........................................................................... 27

Table 7: Summary of performance for municipal entities ............................................................... 29

Table 8: Challenges, highlights and governance issues ................................................................ 30

Table 9: Tshwane Economic Development Agency (TEDA) .......................................................... 34

Table 10: Housing Company Tshwane (HCT) achieved KPIs ........................................................ 35

Table 11: Housing Company Tshwane (HCT) not-achieved KPIs .................................................. 36

Table 12: Sandspruit Works Association (SWA) ............................................................................ 39

Table 13: Reasons for underperformance and corrective measures - SWA ................................... 40

Table 14: Capital projects performance ......................................................................................... 42

Table 15: City Manager Q4 Performance ...................................................................................... 44

Table 16: Community & Social Development Services Q4 Performance Achieved Projects .......... 45

Table 17: Completed projects for Sport & Recreation, Arts & Culture ............................................ 46

Table 18: Community & Social Development Services Q4 Performance Non-Achieved Projects .. 46

Table 19: Community Services Q4 Performance Achieved Projects .............................................. 48

Table 20: Economic Development & Spatial Planning Q4 Performance Non-Achieved Projects ... 49

Table 21: Environment & Agriculture Q4 Performance Achieved Projects ..................................... 50

Table 22: Environment & Agriculture Q4 Performance Non-Achieved Projects ............................. 51

Table 23: Group Financial Services Q4 Performance Reports not submitted ................................ 51

Table 24: Group Property Q4 Performance Non-Achieved Projects .............................................. 52

Table 25: Health Q4 Performance Non-Achieved Projects ............................................................ 53

Table 26: Housing & Human Settlement Q4 Performance of Projects Achieved Projects .............. 54

Table 27: Housing & Human Settlement Q4 Performance of Projects Non-Achieved Projects ...... 57

Table 28: TRT projects reporting as per annual performance report .............................................. 59

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Table 29: TRT non-achieved projects and corrective measures .................................................... 60

Table 30: Roads & Transport Q4 Performance of Projects Achieved Targets ................................ 61

Table 31: Roads & Transport Q4 Performance of Projects ............................................................ 65

Table 32: Shared Services Q4 Performance of Projects Achieved Targets ................................... 66

Table 33: Shared Services Q4 Performance of Projects Not Achieved .......................................... 66

Table 34: Water & Sanitation Q4 Performance of Projects Achieved Targets ................................ 69

Table 35: Shared Services Q4 Performance of Projects Not Achieved .......................................... 72

Table 36: Funds in ......................................................................................................................... 76

Table 37: Funds out ...................................................................................................................... 80

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1 PURPOSE

The purpose of the report is to report to Council:

1. Fourth quarter progress against the adjusted SDBIP targets, in terms of section 52(d) of the Municipal

Finance Management Act (MFMA);

2. Fourth quarter progress on municipal entities business plan targets;

3. Interim annual performance results on the IDP and SDBIP in terms of section 46 of the Municipal

Systems Act.

The report is based on targets set in the adjusted SDBIP as approved by Council in February 2017, targets

approved in municipal entities business plans and their adjustments, and targets in the IDP reviewed due to

the adjusted SDBIP and MTREF in February 2017.

2 STRATEGIC OUTCOMES ON THE IDP

The report addresses the outcome of “promoting good governance and active citizenry”.

3 LIMITATIONS AND REPORTING REQUIREMENTS

3.1 REPORTING REQUIREMENTS

It is a requirement that all departments implement sound controls as per their systems descriptions linked to

the individual indicators on the scorecards. Should processes change due to organisational changes, the

systems descriptions are required to be updated accordingly.

Further, senior management (heads of departments) are required to implement detailed multi-level review

processes within departments to ensure that results reported are internally verified and tested. Reports for the

fourth quarter were due on the 7th of July. All reported results were required to be accompanied by listings, for

purposes of verification and audit, all non-performance to be explained with reasons for non-performance, and

accompanied by corrective measures.

3.2 LIMITATIONS

The report contains progress information on the SDBIP as reported by management in the four quarters of the

financial year, based on the original approved SDBIP and the adjusted SDBIP. Performance information for

the first two quarters were audited by Internal Audit, and a process of verification was undertaken by the CSOP

department, to test the reliability of the reported information against listings and evidence.

Work is currently underway to further test through 100% testing all reported results, to ensure reliable reported

results in the Annual Performance Report (APR).

The need for re-testing is necessitated by numerous factors including:

implementation of early cut-off dates by relevant departments, in order to ensure timeous end of

quarter reporting;

in certain instances human error due to insufficient time for internal reviews of reported results; and

the dependencies on project processes to finalise results, e.g. completion of snags before invoices

are paid, and final completion certificates are received.

The information here-in is therefore not final, as verification and audit work continues. Where information had

been confirmed for the first two quarters, this is reflected in the reporting on the scorecards.

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Internal combined assurance processes will make the necessary updates before all information is finalised for

final audit at financial year end. Therefore, information presented in individual quarterly reports may not

necessarily tally 100% with that presented in the final Annual Performance Report (APR).

Due to shifts in the organisation from January 2017 based on the implementation of a newly approved macro

structure, which in some cases resulted in merged departments, split departments, and splitting of functions,

there are numerous impacts on the performance reporting processes, that are being risk managed through

assurance processes, to ensure qualitative and reliable reporting.

4 PERFORMANCE AGAINST SERVICE DELIVERY TARGETS IDP AND SDBIP

This section of the report –

reports progress on the annual IDP (outcome level) targets; and

provides progress on the adjusted SDBIP (output level) targets.

4.1 INTERIM ANNUAL PERFORMANCE RESULTS ON THE IDP TARGETS

The IDP scorecard contains 23 annual targets at an outcome level, of which one was not applicable for FY

2016/171.

Most of the IDP indicators are driven by specific SDBIP level outputs. Where this is the case, columns (h) and

(i) on the table below reflect the interim annual SDBIP target and the SDBIP results for FY 2016/17

respectively. The interim annual performance results indicate the following:

12 of 22 applicable targets are reported achieved to date (54.5% achievement);

6 targets are not achieved. However, it must be noted that verification processes are still underway

pertaining the EPWP results, and these have a time-lag in reporting (27.3% non-achievement).

4 targets are not reported:

o Due to historical underperformance, there is a likelihood that the non-revenue energy target

will not be achieved for FY 2016/17.

o 1 target awaits the AG report for FY 2016/17 to be reported on in the annual report;

o The interim financial performance results will be reported in the quarter 4 finance report, and

interim results will be taken into the annual performance report of the city for purposes of

AGSA submission. This indicator will however be audited by the AGSA through the AFS

audit.

Legend:

Items highlighted in red indicate that the IDP target has not been achieved.

Items highlighted in green indicate that the IDP target has been achieved.

Table 1: Interim annual performance on the IDP targets for the 2016/17 financial year

IDP Outcomes 2016/17 SDBIP output level

Performance area

Indicator 5 Year Target

Baseline (15/16 audited results)

Target 2016/17

Actual 2016/17

Actual from 2011 FY - to date

Target Actual

a b c d e f g h i

Water security

Percentage of households in formal areas

87.09 % 81.24 % 81.97 % 81.98 % 747,249 households

6,700 hh 6,690 hh

1 Indicator on employee satisfaction survey: the surveys are done every two years.

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Performance area



Target 2016/17

Actual 2016/17


Target Actual

a b c d e f g h i

with access to water (metered connections)

Sustainable waste management

Percentage of formalised areas with access to weekly waste removal services

100.0 % 100.0 % 100.00 %

101.48 2,387 formalised areas

2,352 areas

2,387 areas

Water security

Percentage of households with access to sanitation

82.23 % 78.63 % 79.14 % 79.21 % 722,029 households

4,700 hh 5,256 hh

Energy security

Percentage of formal households with access to electricity

86.45 % 80.43 % 81.46 % 80.74 % 736,011 households

10,450 hh

2,781 hh

Sustainable human settlement

Percentage of required municipal storm water drainage network provided

209.70 km

37.76 % 38.55 % 38.61 % 687.35 km 4.19 km 15.13 km


Percentage of roads provided to the required standard (km)

192.00 km

23.10 % 24.08 % 24.17 % 733.76 km 30 km 32.58 km

Transit oriented development

Percentage of completed TRT bus way lanes constructed

100.0 % 17.72 km

52.05 % 0.0 % 17.7 km 0.65 km 0.00 km


Percentage of informal settlements with access to rudimentary water services

100 % 100.00 %

100.00 %

102.12 % 133 informal settlements

130 informal settlements



Percentage of informal settlements with access to rudimentary sanitation services

100.00 %

58.00 % 100.00 %

118.36 % 64 informal settlements




Nr. of informal settlements formalised

10 5 0 0 5 informal settlements


Economic transformation

Nr of new work opportunities

125,500 152,697 21,500 15,602 168,299 21,500 15,602

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Performance area



Target 2016/17

Actual 2016/17


Target Actual

a b c d e f g h i

facilitated by the city

Sector support and investment attraction

Rand value of investment attracted to the city (annual)

R'b 13.0 Rb12.54

R'b 2.2 R'b 2,579,000,000

R’b1,509,7000,000

R'b 2,200,000

R'b 2.579,000000

Economic transformation

Support through mentorship/training of the Tshepo 10 000 cooperative

1,342 607 245 289 896 245 cooperatives

289 cooperatives

Healthy living

Percentage achievement of the child health index

100.0 % 100.00 %

100.00 %

100.00 % 100.0 % 100.0 % 100.0 %

Indigent and vulnerable support

Number of indigent households supported by the city through its social packages

20,000 new indigent households

110,863 total indigent households




4,000 new indigent households

(3,283) new indigent households

Safe city Percentage of reduction in safety incidents(Fire, rescue and specialised humanitarian incidents) (annual)

5.0 % 33.62% 1.0 % 23.9 % 13,551 incidents

10,414 incidents

Safe city Percentage of increase in interventions to root out crime and related incidents (annual)

5.0 % 3 706 1.00 % 47.25 % 2 764 4 070

Revenue maximisation and financial Management

Unqualified Audit Opinion achieved (Annual)

Unqualified Audit Opinion



Not yet applicable

Unqualified Opinion on an annual basis

Unqualified audit opinion

Not yet applicable


Percentage of financial targets met (regulated targets=cost coverage, debt coverage and % service debtors to revenue)

100.0 % 66.67% 100.00 %

Not yet reported, awaiting finalisation of CFO report

66.67% 100.0 % Not yet reported- awaiting finalisation of CFO report

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Performance area



Target 2016/17

Actual 2016/17


Target Actual

a b c d e f g h i


Percentage of average of annual non-revenue energy (NRE)(Annual)

10.0 % 19.28 % 19.00 % Not reported

annual increase in non-revenue energy ending on 19.28% in 2015/16

19.0 % Not reported


Percentage reduction in non-revenue water (NRW) from 28.2% to 26.0% (2.2% annual reduction)

2.25 % 23.83 % 26.00 % 27.80 % Increase in non-revenue water from 23,83% to 27.80 %

26.00 % 27.80 %

Institutional efficiency

Percentage of employee satisfaction rating

62.0 % 60.0 % NA as this is measured every two years

Civic education programme

Percentage of ward committees established and operational

100% of elected ward committees

NA Initiation of process for the election of ward committees

Process of establishing ward committees is underway

NA NA NA

4.2 PERFORMANCE ON THE SDBIP TARGETS

The adjusted SDBIP has 39 output level targets for FY 2016/172, 12 of these targets are annual targets and

are reported in the last quarter of the financial year. The SDBIP performance assessment for Q4 is based on

reported figures by the departments, and is not yet audited. Interim annual results are indicated, which in some

cases contain verified and audited results up to the end of quarter 2.

4.2.1 QUARTER 4 SDBIP PERFORMANCE SUMMARY

Of the 39 targets on the SDBIP, all had targets for quarter 4. Reported results indicate that –

23 planned targets for quarter 4 were achieved in quarter 4 (58.9% achievement);

8 planned quarter 4 targets were not achieved in quarter 4(20.5% under-achievement)

7 targets were not reported on; and

1 cannot yet be reported on as the audit by the AG only takes place between September-November

2017.

Of the non-reported targets, the following three KPIs were not reported on due to a time lag between financial

and non-financial reporting. They will be reported in the finance report for Q4 to Council, and the interim results

will be incorporated into the APR to be submitted to the AG. These results remain interim until the audit of the

Annual Financial Statements are completed, and the final audit results are reflected in the Annual Report of

the City. The three indicators are:

2 Council approved the adjusted SDBIP in February 2017

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Percentage of service debtors to revenue

Percentage of debt coverage

Cost coverage ratio

Of the eight (8) apparently non-achieved targets in quarter 4, the following must be noted:

EPWP results lag until verification is complete. Hence the APR will have final verified results, as they

are dependent on the verification of capital projects.

Certain targets were achieved earlier in the year, prior to the fourth quarter as follows:

o households provided with a sanitation service;

o roads provided in proclaimed areas to the full level of service; and

o digital platforms for citizens to interact with the city.

4.2.2 INTERIM ANNUAL PERFORMANCE RESULTS ON THE SDBIP Of the reported results, taking into consideration certain audit and verification results, the interim annual

performance results in terms of s46 of the MSA are as follows:

24 of 39 targets appear to have been achieved (61,5%);

10 targets appear to be non-achieved (25,6%);

4 targets are not reported on; and

1 target requires the AGSA audit report to be finalised.

4.2.2.1 INTERIM ANNUAL RESULTS: SUMMARY OF ACHIEVEMENTS AND NON-

ACHIEVEMENTS

Targets not achieved in terms of interim financial year end performance results are:

5,150 households provided with full water connection on a target of 5,200;

2,271 new electricity connections provided on a target of 2,550;

2,138 completed houses electrified to eradicate backlog on a target of 7,900;

114 informal settlements provided with waste removal on a target of 130;

27,80% non-revenue water on a target of 26%;

0.0km of TRT lanes on a target of 0.65km;

0 informal settlements formalised on a target of 5;

15,602 new work opportunities created on a target of 21,500;

1,311 new indigents registered on a target of 6,000; and

89% adherence to the approved EE plan on a target of 100%.

As at mid-year non-revenue electricity was at 22,2%, although the department has not reported in quarter 4

for year end results to be reflected accurately.

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4.2.3 DETAILED PROGRESS AGAINST THE SDBIP SCORECARD

Detailed progress on the SDBIP indicators and targets for quarter 3 are reported in the following table.

Legend:

Achieved targets and KPIs showing positive progress against zero or no target are highlighted in green.

Non achieved targets are highlighted in red.

Mid-year verification results refer to verification work done by CSOP and Internal Audit. This is still being re-tested through additional audits to confirm and

reconcile annual performance results,

Table 2: Quarter 4 and interim annual performance against the SDBIP targets for the 2016/17 financial year

ID Department

Key performance indicator

Prior Year results – 2015/16

Reported to Council

Interim Mid-year verification results post reporting

Not yet audited Interim annual performance

Target Audited result (AGSA)

Q1-Q3 Target YTD

Q1 -Q3 Reported

Q4 Target Q4 Reported Actual

Annual Target

Actual Audited & Reported YTD

1.1.2.1 Regional Operations & Coordination

Number of informal settlements with access to rudimentary water services

124 128 130 132 133 130 134 130 132

1.1.2.2 Utility Services (Water and Sanitation)

Number of households provided with a full water meter connection

4,360 4,502 3,360 679 1,502 1,840 2,969 5,200 5,150

1.1.2.2a Housing and Human Settlement

Number of serviced stands provided with water reticulation (Housing and Human

NA NA 0 0 0 1,500 1,540 1,500 1,540

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ID Department



Reported to Council




Q1-Q3 Target YTD

Q1 -Q3 Reported


Annual Target


Settlements Dept)


Number of households provided with a sanitation service (Utility Services Dept.)

1,874 2,370 400 1 067 1 042 1 400 218 1 800 2 327

1.1.2.3a Housing and Human Settlement

Number of serviced stands provided with sewer reticulation (Housing and Human Settlements Dept)

NA NA 0 0 0 2 900 2 929 2 900 2 929

1.1.2.4 Utility Services (Energy and Electricity)

Number of new electricity connections provided (New Connections)

2,400 2,421 1 850 391 1 231 700 747 2 550 2271

1.1.2.4c Housing and Human Settlement

Number of houses built

NA NA 0 0 0 765 918 765 918


Number of completed houses electrified to eradicate backlog (electrification)

4,200 3,056 5 200 534 1 040 2 700 881 7 900 2138


Number of informal settlements with access to rudimentary

45 59 54 64 64 54 65 54 64

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ID Department



Reported to Council




Q1-Q3 Target YTD

Q1 -Q3 Reported


Annual Target


sanitation services


Number of informal settlements provided with weekly minimal waste removal services

124 134 130 122 130 138 130 114


Number of areas provided with weekly kerbside waste removal

701,852hh 436,021hh 2415 2 329 2 338 2 352 2388 2 352 2373


% reduction in non-revenue water from 28.2% to 26.0% (2.2% annual reduction)

25.06% 23.83% 27.10 %

27.50 % 27.40 % 26.00 % 27.80 % 26.00 % 27.80 %


% average of annual non-revenue energy (Annual)

10% 19.28% 19% not reported

22.2 % 19.0 % not reported 19.0 % 22.2% based on mid-year information

1.4.1.1 Roads and Transport

Km of TRT bus lanes constructed

5,65km 2,96km 0.00 km

0.00 km 0.65 km 0.00 km 0.65 km 0.00 km


Total length of roads in the proclaimed areas provided to the full level of service (km)

25km 37,863km 4.6 8.92 19.838 km 8.06 km 3.82 km 30.00 km 32.580 km


Total length of storm water drainage system in the proclaimed areas provided to

32km 36,464km 4.19 0.97 km 13.80 km 0.00 km 0.35 km 14.00 km 15.13 km

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ID Department



Reported to Council




Q1-Q3 Target YTD

Q1 -Q3 Reported


Annual Target


the full level of service (km)


Number of informal settlements formalised

5 6 0 0 0 5 not reported 5 0

2.1.1.1 Economic Development and Spatial Planning

Number of new work opportunities facilitated by the City

60,000 30,369 10,000

1,029 13,851 11,500 722 21,500 15,602


Rand value of investment attracted to the City

R’b2 R’b2,25 R'b 0.0

R'b 0.0 R'b 0.0 R'b 2 200 000 000.0

R'b 2 579 000 000.0

R'b 2 200 000 000.0

R'b 2 579 000 000.0


Support through mentorship/training to the Tshepo 10 000 cooperatives

240 cooperatives

282 cooperatives

180 75 148 65 66 245 289


Enterprises supported by the City through business development support programmes

4,500 5,138 200 55 119 60 110 260 284

2.6.1.3 City Manager Support Office

Unqualified audit opinion achieved (Annual)



0 Unqualified Audit Opinion



3.1.1.2 Health % of City of Tshwane PHC

100% 100% 100.0 %

100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %

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ID Department



Reported to Council




Q1-Q3 Target YTD

Q1 -Q3 Reported


Annual Target


fixed clinics implementing PMTCT programme

3.1.2.1 Health % of City of Tshwane PHC fixed clinics providing immunisation coverage for children under 1yr of age

85% 64,464% 100.0 %

100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %

3.1.2.3 Health % of City of Tshwane PHC fixed clinics providing HIV testing facilities for pregnant women

91% 98,845% 100.0 %

100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %

3.2.1.1 Health Number of new households registered in the City's indigent register

6,000 3,054 193 1,118 6,000 6,000 1,311

3.2.1.2 Health Number of indigent households exited from the indigent register

2,000 2,681 1 407 3 187 2 000 2 000 4 594

3.4.1.1.1

Community Safety (Emergency Services)

Number of fire incidents reported and responded to

4,687 3,691 3 360 513 2 376 1 280 1 113 4 640 4 002

3.4.1.1.3

Community Safety (Emergency Services )

Number of specialised and humanitarian

1,029 444 765 179 279 254 106 1 019 564

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ID Department



Reported to Council




Q1-Q3 Target YTD

Q1 -Q3 Reported


Annual Target


incidents reported and responded to

3.4.1.2 Community Safety (Metro Police Services)

Number of road policing operations / interventions executed in order to comply with the road safety plan (road policing)

732 1,344 573 384 806 191 412 764 1 602

3.4.1.2.1

Community Safety (Emergency Services )

Number of rescue incidents reported and responded to

7,972 5,457 5 919 1 294 3 152 1 973 1 402 7 892 5 848


Number of crime prevention operations / interventions executed to contribute to a reduction of crime throughout Tshwane

1,440 1,800 1 143 435 937 381 420 1 524 1 792


Number of by-law policing operations / interventions executed to contribute to a reduction in by-law transgressions

468 562 357 161 346 119 169 476 676

5.1.1.1 Group Financial Services

% service debtors to revenue

25% 16,32%

(CoT)

25.50 %

25.00 % 25.00 %

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ID Department



Reported to Council




Q1-Q3 Target YTD

Q1 -Q3 Reported


Annual Target


16,86% (Group)


% debt coverage 15% 35,44%

(CoT)

35,35% (Group)

11.25 %

15.00 % 15.00 %


Cost coverage ratio

1% 0,50%

(CoT)*

0,51% (Group) *

0.75 %

1.00 % 1.00 %

6.1.1.2 Group Human Capital Management

% of employees appointed as per the approved EE plan (Annual)

100% 62% Annual Measure

100% adherence to approved EE plan (Annual Target)

89% 100% adherence to approved EE plan (Annual Target)

89%

6.3.1.1 City Manager Support Office

Number of digital platforms utilized to allow citizens to interact with the City

NA NA 0 2 3 1 0 1 5

6.3.1.2 Office of the Speaker

Number of engagement sessions held with traditional councils/leaders

NA NA 3 4 9 1 2 4 15

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4.2.4 REASONS FOR UNDERPERFORMANCE AND CORRECTIVE MEASURES

The table below provides reasons for underperformance and corrective measures for SDBIP indicators.

Table 3: Corrective measures for non-achieved SDBIP targets

IDP Focus

area (KPA)

Non-achieved targets

for quarter 4


year to date

Reasons for

underperformance

Corrective measures

Basic services

provision

Q4 target achieved 5,150 of 5 200

households were

provided with full water

meter connections.

There was an under-

performance of 20

connections.

Not provided by the

KPI owner

Not provided by the

KPI owner

Q4 target achieved 2,271 of 2,550 new

electricity connections

were provided. There

was an under-

performance of 279

connections.

The project is application driven and is dependent on paid applications received from potential consumers.

Not provided by the

KPI owner

881 of 2,400

completed houses

were electrified to

eradicate backlogs.

There was an under-

performance of 2,166

connections.

2,138 of 7,900

completed houses

were electrified to

eradicate backlogs.

There was an under-

performance of 5,762.

The following Township Networks were commissioned , seven Minisubstation zones with capacity to connect 600 beneficiaries at Mahube Ext 15 and nine minisubstation zones with capacity to connect 765 beneficiaries at Nellmaphius Ext. 24

Increase the capacity of contractors in order to meet the number of pre-paid meters connections monthly

Q4 target achieved An average of 114 of

the estimated 130

informal settlements

received weekly waste

removal services.

There was an under-

performance of 16.

Not provided by the

KPI owner

Not provided by the

KPI owner

2,329 of the estimated

2,446 formal areas

received waste

removal services

An average of 2,387 of

the planned 2,415

formal areas were

provided with weekly

kerbside waste

removal year to date.

Listings revised Not provided by the

KPI owner

Roads,

transport and

mobility

0.0km of TRT lanes on a target of 0.65km

0.0km of TRT lanes on a target of 0.65km

Project (Line 1A-WP4B) delayed due to the process of obtaining the permit for demolishing the Fritz Dwelling which fell within the road reserve. PHRA-G issued the permit to demolish the Fritz Dwelling only on the 24 March 2017. The project is currently at 54% with completion expected by end of August 2017.

Demolishing permit

obtained on 24 March

2017. Demolishment

completed.

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19

IDP Focus

area (KPA)


for quarter 4


year to date

Reasons for

underperformance

Corrective measures

Project (Line 1A-WP4B) delayed due to the process of obtaining the permit for demolishing the Fritz Dwelling which fell within the road reserve. PHRA-G issued the permit to demolish the Fritz Dwelling only on the 24 March 2017. The project is currently at 54% with completion expected by end of August 2017.

Upgrading and

development

of informal

settlements

0 informal settlements formalised on a target of 5.

0 informal settlements formalised on a target of 5.

Not provided by the

KPI owner

Not provided by the

KPI owner

Job intensive

economy

722 of 11,500 new

work opportunities

were created.

15,602 of 21,500 new

work opportunities

were created.

June 2017 verified

information not yet

included

Including the verified

information for June

2017

Social

Services

1,311 of 6,000 new

households registered

in the City's indigent

register

Insufficient human capacity. Insufficient budget

allocated for the

Indigent Programme

The proposed micro structure has been submitted. A proposed budget

has been submitted for

2017/18 FY.

Awaiting Council

approval on both

submissions.

Financial and

governance

Non-revenue water

stood at 27,8% as

compared to the target

of 26%

Non-revenue water

stood at 27,8% as

compared to the target

of 26%

The non-availability of

the required funding

and resources impacts

negatively on the

implementation of the

revised Water

Conservation and

Water Demand

Management

(WC/WDM) Strategy.

This inter alia includes

capital funding for the

pipe replacement

programme and Opex

funding for plumbing

teams to improve on

the norms and

standards for leak

repairs, thereby

reducing physical

losses in the

reticulation networks.

Successful implementation of water loss reduction initiatives is hugely dependent on the availability of funding as well as human resources. It must be emphasized that the water and sanitation division is not the only responsible party when it comes to water losses. The Regions, where approximately 80% of the losses occur through water leaks and pipe bursts, remains critical in playing a positive role in reducing the water losses. Additional maintenance teams must be appointed and these maintenance teams will require adequate fleet and other equipment to perform their duties effectively.

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20

IDP Focus

area (KPA)


for quarter 4


year to date

Reasons for

underperformance

Corrective measures

Continued

organisational

development,

transformation

and innovation

89% adherence to the approved EE plan on a target of 100%

89% adherence to the approved EE plan on a target of 100%

Non-adherence to EE targets by Departments. High rate of unfilled vacancies

High turnover rate

Positions to be filled should be informed by EE Plan. Improve the rate in filling of vacancies which is at a slow pace. Conduct workforce

analysis to determine

high turnover.

5 SERVICE DELIVERY CHALLENGES The regions reported the following service delivery challenges for all the quarters of 2016-17FY-

Ageing electrical infrastructure within the regions

Vandalism of Council property due to shortage and, in some instances, lack of security personnel and/or proper security systems (e.g. CCTV cameras that are monitored 24/7)

Theft of Council property (e.g. cable theft)

Illegal land occupation

Illegal electricity connections

Illegal dumping

Illegal advertising

Illegal hawkers and taxi ranks

The table below provides information on service disruptions that took place during quarter 4.

Table 4: Service disruptions

Region(s) Details on service disruptions

1 Waste collection was disrupted on 8 May 2017 and 14 June 2017 by the sub-contractor (Moipone). The major service delivery disruptions for quarter 4 of the financial year 2016/17 for Energy and Electricity was as follows: -8th April 21017: Ward 94 Soshanguve block FF due to a power failure. -16th May 2017: Block T Soshanguve in ward 25 due to a power failure. -15th June 2017: Soshanguve South Ext 8 due to a power failure.

2 We responded to 2908 power outages experienced in Quarter 4, 100% responded to within the Norms and Standards timeframes.

3 -Vat Alles March to Tshwane House -Samwu hand memorandum to Mayor -Taxi owner and driver march -“Zuma Must Fall” march from political parties -Service provider close Speakers of Office due to non-payment -Meter Reader Officials close BKS due to contract agreement -Waste management not collecting dustbins

4 -Service Delivery interrupted 15 June 2017 due to national Taxi strike. Service disrupted, because staff were unable to get to work. -Water Interruption due to a scheduled maintenance of Brakfontein Resevoir on 29 May 2017. - Water interruption due to the scheduled maintenance and the upgrading of the water supply from Apies Rd, to Theron and Venter Road on 11 April 2017 in Monavoni.

5 -On the 17th of May 2017 Refilwe Township experienced prolonged power outage which took four to five days. This was because Eskom was doing upgrade work on the MV line that was feeding Refilwe. The City was not informed about this outage and this had a detrimental impact on service delivery and customer satisfaction

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21

-Waste management service providers, staged a tools down on 20 March 2017. This resulted in waste collection disruption. However, backlogs created have been addressed and service is back on schedule -Frequent water supply disruption in the Kameeldrift area due to shortage in supply from Magalies water. -The disruption is caused by continuous removal of land invaders and in response they block roads. The challenge cannot be resolved by the section. -Planned maintenance is usually interrupted by various communities as they demand employment and subcontracting which appointed contractors cannot provide. Ongoing service delivery interruption by local business forums is also a challenge.

6 Total of 191 service disruptions were reported for quarter 4

7 Planned water supply interruption on 27 June 2017 – Repair due to a bulk pipeline at Zithobeni reservoir.

Cable theft continues to negatively-affect the City's budget (cost of replacing the stolen cables), and service delivery throughout the city. The table below lists specific cable theft incidents that took place during quarter four. Table 5: Cable theft

Region(s) Details on cable theft

1 Theft and vandalism of electrical infrastructure is still ongoing and that is affecting Regional service delivery negatively. It causes inconvenience and unnecessary repair cost and insurance claims.

2 Currently the greatest risk area is rural areas in Rooiwal, Waterval and Bonaccord / Onderstepoort Area. The approximate amount spent range between R600 000 and R800 000 per month, over the quarter.

3 71 Concentric Conductors Stolen and 7 Medium Voltage Copper cable thefts.

4 205 thefts recorded; 181 repaired and 24 in progress.

5 MV and LV Cables estimated at around R 28 000 was stolen in the fourth quarter in region 5, both in the rural and urban lines. Cases have been opened with SAPS and claims submitted to the claims department.

6 A total of 7 cable theft claims with the value of R408 000 has been reported for quarter 4

7 Streetlights cables vandalized or stolen at the following areas: Clinic Section F at Ekangala

Divine church at Ekangala

Masakhane Section F at Ekangala

Rethabiseng Entrance

6 FEEDBACK FROM DEPARTMENTAL BUSENESS PLAN REPORTS

6.1 OFFICE OF THE CITY MANAGER All Public Protector Cases and Promotion of Access to Information Act requests have been monitored and

tracked to ensure provision of responses within the applicable time. The OCM Stakeholder Division facilitated

and coordinated an engagement between City of Tshwane, Tshwane Business Forum and Klerksoord

Business Stakeholders. The office has conducted the following workshops:

Combatting the drivers of Xenophobic Violence held at Farm Inn, Pretoria;

Democratic Awareness workshop for Refugees and Asylum Seekers held at TLMA;

Democratic Awareness workshop for Refugees and Asylum Seekers (National Refugees Day) held at

Joliveti House, Visagie Street.

6.2 OFFICE OF THE EXECUTIVE MAYOR

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22

The African Capital Cities Sustainability Forum (ACCSF) creates a platform for the convergence of Mayors

from African Capital Cities and their senior officials to discuss and identify key opportunities and threats posed

to their cities’ growth, sustainability and wellbeing. It is also aimed at sharpening a sustainable development

focus among continental role-players to strengthen our contributions in relevant and significant national, pan-

African and international dialogues and institutions.

This was the third iteration of ACCSF and it took place in conjunction with the Sustainability Week Conference

hosted by the City of Tshwane. The ACCSF was held on the first of the three days (13 June) and the

Sustainability Week seminars took place on 14 and 15 June 2017. A Sustainability Exhibition was held for the

duration of ACCSF and Sustainability Week. Technical Tours were also organized for the Mayors showcasing

sustainability projects/development in the City.

6.3 GROUP COMMUNICATION AND MARKETING The department has developed the new identity for Wonderboom airport. Re-branding of the customer care

walk-in centres city wide is completed. The department has also exceeded revenue collection for the 3rd year.

6.4 CITY STRATEGY AND ORGANISATIONAL PERFORMANCE The department succeeded to get a credible pro-poor IDP on the table based on an affordable balanced

budget. IGR incorporated into CSOP in May 2017. Subsequently, Management Meetings held in 11 May 2017,

the second Management meeting and first staff meeting held on 19 June 2017. The SDBIP was developed

and signed off by EM before being tabled at Council for noting.

6.5 METRO POLICE Take a girl child to work:

The Tshwane Metro Police hosted five girls coordinated by the Communication Section. The girls were taken

to the Social crime offices where they met with Director Nkuna and he demonstrated to them how to handle

yourself in a riot situation and the reasons why they use the protective clothing. The girls were also shown the

different vehicles for different units the Nyala, dog unit cars and the equestrian trailers.

The girls had an opportunity to meet with Deputy Chief Dhlamini who was very informative and coached them

not only on how to become Metro Police officers but also on how to behave themselves in society and how the

decisions that they make as a young girls will impact in their future. The Employee Wellness Section educated

the girls about the role and responsibilities of their unit and its importance in an organisation.

The event was a success and the girls had more knowledge about the Metro Police. The girls expressed how

they would love to pursue a career in the Metro Police. The girls also received corporate gifts from the Tshwane

Metro Police.

6.6 EMERGENCY MANAGEMENT SERVICES During Q4 of 2016-17 financial year, Fire Safety Officers visited the National Key Points, stores, places of

entertainment, industrial and hotels for assessment. During Q4 of 2016-17 financial year, Fire Safety Officers

visited the National Key Points, stores, places of entertainment, industrial and hotels for assessment.

Fire Safety forms part of the approval of new developments and buildings which do not comply with the deemed

to satisfy rules of SANS 10400, the Application of the National Building Regulations through rational designed

by a fire consultant to comply with deemed to satisfy rules. 63 Rational Design submissions were evaluated

during Q4 of 2016-17 financial year and nine applications for township establishment were received.

Fire Safety Section have six customer surveys done on assessment requests received from the community.

The feedback during customer survey indicates a general satisfaction on the assessments which were done.

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23

Disaster Management Centre responded to fifteen localized disaster incidents such as structural fire, shack

fire and house fire during Q4 of 2016-2017 financial year.

House fire at Kameeldrift on 30 May 2017

6.7 OFFICE OF THE SPEAKER 2017/18 IDP Community Consultative Meetings 05 April 2017: Mobilized communities to attend the public

participation meetings by developing flyers.

Mayoral Public meeting in Region 1 City Rock Sports Ground, Winterveldt 08 April 2017: Mobilized

communities to attend the meeting by developing a flyer.

Speaker’s Prophetic Prayer Day Sammy Marks Council Chamber 24 April 2017: Mobilized communities to

attend the prayer day by developing invitation letters and a flyer and provided branding.

Ward Committee By-law Public Consultative meeting at Es’kia Mphahlele Library Hall 06 May 2017: Mobilized

communities to attend the public participation meetings by developing flyers, newspaper adverts and posters.

Provided branding.

Homelessness and Special Needs Schools Policies Public Participation, 24 June 2017 at Sammy Marks

Banquet Hall: Mobilized communities to attend the public participation meeting by developing flyers, posters

and newspaper adverts. Uploaded the policies on public website. Provided branding.

Tshwane Youth Empowerment Summit, 27 June 2017 at Fountains Valley: Mobilized youth by developing a

flyer and poster.

Skills Development Session Region 2 (GDARD), 27 June 2017 at Temba Indoor Sports Complex: Facilitated

the session by organizing preparatory meetings and developing flyers and programme.

6.8 GROUP HUMAN CAPITAL MANAGEMENT Centralised Disciplinary Cases Services allows for fairness and consistency in dealing with discipline in the

City. Disciplinary Cases Unit email address is being utilised by all City Departments and the Division has

noted that departments are referring more matters than was done in the previous years.

6.9 ECONOMIC DEVELOPMENT AND SPATIAL PLANNING Tshepo 10 000: A total of eight co-operatives applied to participate in the biofuel incubation programme. It is a three year programme and includes coaching and mentoring in crop production, production of edible vegetable oil and also biodiesel production. The incubation programme is funded through the Small Enterprise Development Agency (SEDA) technology programme.

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Launch of the Babelegi Industrial Park:

The minister of Trade and Industry, Dr Rob Davies, launched the first phase of the revitalisation of the Babelegi

Industrial Park on 30 May 2017. The first phase of the revitalisation of the industrial parks focuses on security

upgrades, such as fencing, the control room, the guard houses, the swing gates, the pedestrian gates, a new

boom gate and high mast lighting upgrade and maintenance. He was joined by the acting Gauteng Premier,

Ms Barbara Creecy, the Premier of the North West, Mr Supra Mahumapelo, the acting Chief Executive Officer

of the North West Development Corporation, Mr Mike Mthimuye and the City of Tshwane Member of the

Mayoral Committee (MMC): Economic Development and Spatial Planning, Councillor Randall Williams.

R42 million was spent on the revitalisation of industrial parks, which is aimed at accelerating economic

development in the Region, by attracting business investments to locate in Babelegi. It is also aimed at

supporting job creation in the manufacturing and related sectors. The Babelegi Industrial Park is managed by

the North West Development Corporation (NWDC) and it has 261 units which are available for leasing; 188 of

the units are occupied by firms operating in textiles, engineering, construction, light manufacturing,

warehousing and distribution houses.

Above: The minister of Trade and Industry, Dr Rob Davies (centre), cutting the ribbon at the launch of the Babelegi Industrial Park. He is joined by the acting Gauteng Premier, Ms Barbara Creecy, the Premier of the North West, Mr Supra Mahumapelo, Councillor Randall Williams and the Director General of the Department of Trade and Industry, Mr Lionel October. Below: Councillor Randall Williams and Councillor Selata Nkwane, the Chairperson of the Oversight Committee: Economic Development and Spatial Planning, looking at socks that Sarah Maouko packed at the Jupiter socks factory.

Business Process Outsourcing (BPO) industry stakeholder engagement session: A successful BPO industry stakeholder engagement session was held on 9 May 2017. The session was aimed at fostering closer interaction with all key stakeholders, understanding the challenges and opportunities facing the industry and possible ways of unlocking them and enabling the City to create a more conducive investor-friendly environment, sharing and updating the industry on the City’s initiatives and anchor projects in the sector and engaging the industry on the development of a suitable management and operating model for the Tshwane BPO Park. The event was attended by key industry champions, the City’s administrative and political leaders, BPO operators, skills development agencies/companies, Tshwane based call centre managers/operators and employment agencies.

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25

Above: Councillor Randall Williams addressing stakeholders at the BPO industry stakeholder engagement

session and below: stakeholders attending the session.

Built Environment and Enforcement

There has been some improvements in terms of the numbers of applications approved between the first two

quarters. In quarter one, 2713 building applications were approved and in quarter two, 2920 building

applications were approved, indicating 2% growth. Quarter 3 saw the approval of 2,121 plans, and receipts of

2,242 new plan applications. There were 2376 building plan were approved and received 3237 of the new

applications, a 1% growth for quarter 4.

City Development

The Municipal planning tribunal and Municipal appeals tribunal has been established and implemented.

City Planning

The Draft CIF and the draft 2017/2018 BEPP has been approved by Council in March 2017, as part of the

tables IDP and budget.

Spatial Planning has implemented the guideline document for the compilation of Land Use Scheme related

documents for all development applications in terms of Section 12(3) of the City if Tshwane Land Use

Management By-law 2016.

Geomatics surveying has managed to process 95% of the engineering surveying projects the only outstanding

is the planning and setting out of control network for town survey marks throughout the city a two year project

focus working with National Geo-spatial Information (NGI), a component of Department of Rural Development

and Land Reform (DRDLR).

17 reports served before the Local Geographical Names Committee, resulting in the approval of 6 reports by

Council in January 2017. Remainder of reports were recommended to Council for approval, which would result

in a total of 459 new street names.

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26

15 reports served before the Local Geographical Names Committee during April to June 2017. 9 reports were

approved by Council during the same period. All of these reports were for the population for the Geographical

Names bank (394 Names).

5 reports will serve before Council on the 29th June 2017. Currently there are 2818 approved names on the

Geographical Names Bank.

A project was initiated to audit the capturing of approved land use rights for Consent Use and Permission

applications. According to the database 4827 such applications have been approved since 2000. A total of

831 of these approvals have been audited and it was found that 62 of the approvals have not been linked onto

Arg Gis. The latter has since been linked. This project is ongoing.

6.10 HEALTH The Health Department took part in the national measles immunization and flu campaigns and conducted a

successful campaign with a provisional coverage rate of 91% coverage for measles immunisation. 14,700

people falling within the target group of high risk people have been vaccinated against flu.

The Tuberculosis coverage rate was reported a 91% which was above the national target of 90%.

During the healthy living initiative awareness, conducted on the 6 June 2017 at MA Automotive, Rosslyn. 111

people were reached with information on healthy life styles that include: less alcohol intake, no drug abuse,

regular exercise, increasing water intake, treatment compliance for those taking chronic medication to reduce

the occurrence of complication.

80 received influenza vaccines, 98 had HIV testing and TB screened by Zakheni NGO. 102 had STI screening,

105 blood pressure and blood glucose screening.

6.11 COMMUNITY & SOCIAL DEVELOPMENT SERVICES Implementation of Training for Youth People under the National Youth Service Programme with the Tshwane

Leadership and Management Academy (TLMA).

Increased support for intervention to support Military Veterans: Skills Development for Military Veterans in

Entrepreneurships, Computer Skills amongst others. Allocation of Housing to Military Veterans.

Hosting of awareness programmes for people living with disabilities, i.e. (1) Albinism and (2) Down Syndrome

(3) Special Schools Outreach Programme at the beginning of the academic term.

Establishment of Regional Forum for all Military Veterans Associations in Tshwane to ensure improved

consultations and the coordination of the COT Policy on the operationalization of the Military Veterans Act.

Coordination with various youth Empowerment with National Youth Development Agency, University of South

Africa, and other local youth organisations.

6.12 HOUSING & HUMAN SETTLEMENT Waste Water Treatwent Works (WWTW) completed at Refilwe Manor.

Completion of 40m Kaalplaas Spruit bridge crossing in Thorntreeview.

Completion of 13,964 km of roads (Soshanguve Ext 5, Soshanguve Ext 13, Thorntreview Soshsnguve A,

Soshanguve South Ext 6), Winterveld, Zithobeni 8 & 9.

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27

Installation of 1540 stands (water reticulation) in Winterveld, Kopanong, ZIthobeni Heights, Zithobeni 8 & 9,

Rama City, Mabopane Ext 1.

Installation of 2929 stands (sewer reticulation) in Winterveld, Kopanong, Zithobeni 8 & 9, Rama City,

Mabopane Ext 1.

Completion of 918 top structures in Refilwe Manor, Fort West Ext 4 & 5, Olievenhoutbosch Ext 60, Kudube

unit 9 and Mamelodi Ext 5.

The Department worked with two Social Housing Institutions (SHIs) with a target to facilitate 500 units.

Between both of them a total of 807 has been achieved. 182 units were achieved through the Gauteng

Partnership Funds (GPF) Entrepreneur Empowerment Property Fund (EEPF). EEPF is an incubator

programme designed to promote participation of previously disadvantaged owned companies in the affordable

rental property market. The programme is for 100% historical disadvantaged owned individuals (HDIs) owned

companies that provide rental for or delayed ownership schemes to households with income of less than R15

000. Yeast City Housing delivered 625 units.

6.13 UTILITY SERVICES Replacement of water network of in Soshanguve Block AA and F

The purpose of this project was to replace the most critical sections of the existing water reticulation that has

deteriorated to such an extent that it has become unserviceable.

Replacement of the existing AC pipes with 110 mm diameter and 200mm diameter uPVC pipe, Length of 4500

m of pipeline. The replacement included all valves, communication pipes and water meters where it was

required. All paving, concrete and road surfaces damaged during construction states has also been

repaired.4500 m of pipeline.

To complete the project, it took a period of eight months, it commenced on 02 June 2016 and ended on 17

March 2017. The contract value was R 10 824 938.86 (Inclusive of Vat), the primary Ward benefited from the

project is ward 29 in region. The appointed contractor was Solmix, with seven subcontractors and fifty three

local laboures employed.

6.14 REGIONAL OPERATIONS & COORDINATION Service delivery highlights for the ROC are presented in the table below:

Table 6: Service Delivery highlights for the ROC

Region(s) Highlights

1 Soshanguve SS Ext. 1 low cost housing allocation for the brown field project: Twelve (12) out of two hundred (200) low cost houses were successfully allocated to the approved beneficiaries on this quarter. Soshanguve South Ext. 7 low cost housing allocation for the brown field project: One hundred and two (102) out of two hundred (200) low cost houses were successfully allocated to the approved beneficiaries on this quarter.

2 On the 26 March 2017 Hammanskraaal Sport Complex hosted a Kasi ride mayoral event which consisted of cycling, fun run/walk, roller skating and aerobics. The event was aimed at encouraging the community to be active and utilize less costly mode of sustainable transport in bicycles, on and above all it encouraged people to leave a healthy lifestyle. MMC for Sport and Recreation together with the ward 49 councilor and Region 2 RED graced the event gave much needed motivation talk.

3 The following income was generated at SRAC Facilities for Quarter 4: Sport and Recreation – R200,539.60 and for the FY (R1,057,172.18) Arts and Culture – R67,577.70 and for the FY (R197,708.15) Libraries – R59,370.20 and for the FY (R309,402.67)

4 Library programmes aimed at empowering young people were conducted at various libraries (e.g. Pierre van Ryneveld Christian Academy Grade 2 learners visited Pierre van Ryneveld library) during youth month in region 4.

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5 Region 5 held a Public Consultation on Customer Complaints and Complements at the Refilwe Community Hall.

6 The launch of new projects for the Region will assist in addressing some of the backlogs in the Region.

7 988 beneficiaries have already completed the Housing Subsidy Scheme Forms and 681 have been approved from Zithobeni Ext 9.

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7 PERFORMANCE OF MUNICIPAL ENTITIES

7.1 BACKGROUND

Municipal entities are separate legal entities headed by a board of directors and utilised by a municipality

to deliver services to its community and must perform per service delivery agreements and performance

objectives set by the Municipality.

The city has 3 municipal entities that are responsible to deliver certain services to its community and are

accountable to the municipality. These three entities under the leadership of the Chief Operations Officer,

perform according to service delivery agreements and performance objectives as set by the municipality.

Namely:

1. Housing Company Tshwane (HCT)

2. Sandspruit Works Association (SWA)

3. Tshwane Economic Development Agency (TEDA)

7.2 PERFORMANCE OF MUNICIPAL ENTITIES

The municipal entities are required to report on their performance against their business plans. At the end

of quarter 80.55% were reported achieved by entities against their planned targets. These are as yet

unaudited results.

The municipal entities have reported the following performance for Quarter 4 2016/17 FY: The detailed

reports of the entities and the assessment of their reports by the share-holder unit are attached in the

annexure to this report.

Table 7: Summary of performance for municipal entities

Entity Nr of targets for the year

Nr of targets applicable for Q4

Targets achieved for Q4

Targets achieved YTD

Targets not achieved YTD

Status YTD

TEDA 13 11 11 13 0 The Entity has 13 KPIs for the FY and has recorded 100% achievement on all the KPI applicable for the FY. 100% achievement recorded

Housing Company Tshwane

17 16 11 11 6 65% achievement

Sandspruit Works Association

10 9 7 8 2 80% achievement

Total 40 36 (90%) 29

(80.55%) 32 (80%) 8 (20%)

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Table 8: Challenges, highlights and governance issues

Category Entity Discussion C

halle

nges

HCT Objections from the community for the Timberland Social Housing.

Delays in Chantelle as the occupant is reluctant to move from the building.

Challenges at Townlands as a result of contractor poor performance.

SWA Implementing debt collection and credit control measures could not be executed adequately in that some accounts such as government, indigents and queries are omitted.

Service providers were faced with intimidation from community when rendering services.

Meter readers are also intimidated, and meters are not accessible in other areas as well as inaccurate registration of indigents.

TEDA The risks of interdependencies is critical in the success of the Entity and the

Office of Shareholder Unit should play an important role to manage and

reduce it.

The continuing litigation against the company pertaining to the legal dispute brought by Scatterlings, a company previously appointed by the company to deliver the Tshwane International Trade and Infrastructure Investment Conference (TITIIC).

Hig

hlig

hts

HCT None

SWA SWA employees, assets, liabilities, rights and obligation as well as operations have been transferred to the City of Tshwane as at 30 June 2017 in line with the Council resolution of 27 October 2016 to disestablish the entity.

Entity embarked in the upgrade of Waste Water Treatment Works in Temba to improve quality of the treated effluent and installation of electrical cable from the Main Works to Inlet Works has been completed.

Successfully conducted customer outreach at MAWIGA in conjunction with Ward Councilors and Community Leader with a view of addressing consumers concerns regarding billing issues as well as water and sanitation matters.

TEDA TEDA through its facilitation role of the Tshwane Freight Terminal and

Logistics hub has facilitated an investment commitment amounting to R1.2

billion. The investment is expected to create 80 temporary jobs during

construction and 400 permanent jobs in the first three years of operation.

The collaboration between the DTI and TEDA on the Global Exporter Passport

Programme (GEPP) has resulted in 390 companies having been trained on

export interventions in Tshwane.

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Category Entity Discussion

Two trade missions in the month of June 2017 were undertaken.

The first mission was to the Netherlands focusing on Agro-

processing where seven (7) Multi Sectoral Tshwane Based

companies were selected to undergo the mission.

The second trade mission was to the Paris Air Show where TEDA

held various meetings with over 15 companies and have received

positive leads.

Govern

ance M

atters

HCT The board held 2 meetings during the quarter under review.

The entity has 2 Auditor General Findings that are in progress to be

addressed. HCT to resolve the findings before the submission of 2016/17

Annual Performance Report to AG by 31 August 2017 to avoid repeat finding

in the next financial year.

SWA 5 board meetings were held during the quarter under review owing to disestablishment processes.

The entity has 25 Auditor General's (AG) findings, 24 have been successfully resolved except for 1 that is still in progress. This finding is to be resolved before the submission of 2016/17 Annual Performance Report to AG by 31 August 2017 to avoid repeat finding in the next financial year.

Two 2 disciplinary hearing were recorded and 1 has been finalised during the quarter under review and 1 is still outstanding. The outstanding hearing will be conducted by Utility Services Department.

4 injury on duty incidents were recorded.

TEDA Board and Committee meetings were held during the period under review.

90% of the business units have their own operational risk registers that

includes the response strategies to all risks that are above the acceptable

threshold level.

Conducted meetings with Heads of Business Units to document the progress

on the action plans related to Strategic Risk.


Challe

nges

HCT Objections from the community for the Timberland Social Housing.

Delays in Chantelle as the occupant is reluctant to move from the building.

Challenges at Townlands as a result of contractor poor performance.

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32


SWA Implementing debt collection and credit control measures could not be executed adequately in that some accounts such as government, indigents and queries are omitted.

Service providers were faced with intimidation from community when rendering services.

Meter readers are also intimidated, and meters are not accessible in other areas as well as inaccurate registration of indigents.

TEDA The risks of interdependencies is critical in the success of the Entity and the

Office of Shareholder Unit should play an important role to manage and

reduce it.

The continuing litigation against the company pertaining to the legal dispute brought by Scatterlings, a company previously appointed by the company to deliver the Tshwane International Trade and Infrastructure Investment Conference (TITIIC).

Hig

hlig

hts

HCT None

SWA SWA employees, assets, liabilities, rights and obligation as well as operations have been transferred to the City of Tshwane as at 30 June 2017 in line with the Council resolution of 27 October 2016 to disestablish the entity.

Entity embarked in the upgrade of Waste Water Treatment Works in Temba to improve quality of the treated effluent and installation of electrical cable from the Main Works to Inlet Works has been completed.

Successfully conducted customer outreach at MAWIGA in conjunction with Ward Councilors and Community Leader with a view of addressing consumers concerns regarding billing issues as well as water and sanitation matters.

TEDA TEDA through its facilitation role of the Tshwane Freight Terminal and

Logistics hub has facilitated an investment commitment amounting to R1.2

billion. The investment is expected to create 80 temporary jobs during

construction and 400 permanent jobs in the first three years of operation.

The collaboration between the DTI and TEDA on the Global Exporter Passport

Programme (GEPP) has resulted in 390 companies having been trained on

export interventions in Tshwane.

Two trade missions in the month of June 2017 were undertaken.

The first mission was to the Netherlands focusing on Agro-

processing where seven (7) Multi Sectoral Tshwane Based

companies were selected to undergo the mission.

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The second trade mission was to the Paris Air Show where TEDA

held various meetings with over 15 companies and have received

positive leads.

Govern

ance M

atters

HCT The board held 2 meetings during the quarter under review.

The entity has 2 Auditor General Findings that are in progress to be

addressed. HCT to resolve the findings before the submission of 2016/17

Annual Performance Report to AG by 31 August 2017 to avoid repeat finding

in the next financial year.

SWA 5 board meetings were held during the quarter under review owing to disestablishment processes.

The entity has 25 Auditor General's (AG) findings, 24 have been successfully resolved except for 1 that is still in progress. This finding is to be resolved before the submission of 2016/17 Annual Performance Report to AG by 31 August 2017 to avoid repeat finding in the next financial year.

Two 2 disciplinary hearing were recorded and 1 has been finalised during the quarter under review and 1 is still outstanding. The outstanding hearing will be conducted by Utility Services Department.

4 injury on duty incidents were recorded.

TEDA Board and Committee meetings were held during the period under review.

90% of the business units have their own operational risk registers that

includes the response strategies to all risks that are above the acceptable

threshold level.

Conducted meetings with Heads of Business Units to document the progress

on the action plans related to Strategic Risk.

7.2.1 TEDA

In total the entity has 13 targets for the year, and 5 of them have annual targets. During fourth quarter

reporting, 100% achievement was recorded for the 11 KPIs that were applicable. In the entire FY the entity

achieved 100% on all its 13 KPIs.

7.2.1.1 Scorecard as reported by TEDA

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Table 9: Tshwane Economic Development Agency (TEDA)


Annual target Q4 target Q4 actual Actual YTD Assessment of performance reported at end of Q4

Number of trade and investment reports produced

3 0 0 3 No target for Q4 but the target for the FY achieved

Number of capacity building initiatives held for SMME export readiness

2 1 1 3 Target for Q4 achieved and overall target for the FY exceeded

Number of trade and investment missions participated in

3 1 2 4 Target for Q4 and FY exceeded

Rand value of investment attracted to the City by TEDA

1 000 000 000 1 000 000 00 1 200 000 000 1 200 000 000 Target for the FY exceeded through the commitment of R1.2b investment

No of income earning opportunities facilitated by TEDA

300 300 400 400 Target for the FY exceeded

Infrastructure feasibility study for the Hub produced

Infrastructure feasibility study for the Hub

N/A N/A Infrastructure feasibility study for the Hub completed

No target for Q4 but target for the FY achieved

Preliminary Design of the Hub produced

Preliminary Design of the Hub

Preliminary design of the Hub signed-off

Preliminary design report completed

Preliminary design report completed

Target for Q4

and FY

achieved

Project feasibility study facilitated

Quarterly project reports

Project reports Quarterly project reports produced and signed off

Quarterly project reports produced and signed off

Target for Q4

and FY

achieved

Preparation work on refurbishment completed

Project implementation preparatory work (e.g. EIA, Designs and Permits)

Statutory approvals (EIA and PHRAG permit)

Application documents of EIA opinion and PHRAG permit submitted

Statutory approvals received

Target for Q4 and FY achieved

Pre-feasibility study produced

Pre-feasibility study of the Hub

Pre-feasibility study developed

The pre-feasibility of the study is completed

The pre-feasibility of the study report is completed

Target for Q4

and FY

achieved

Feasibility study produced

Feasibility study of the Tshwane agro-processing hub bioenergy facility

High level detailed feasibility study developed

High level detailed feasibility study report completed

High level detailed feasibility study report completed

Target for Q4 and FY achieved

Number of exhibitions and trade shows participated in

4 3 3 6 Target for Q4 achieved and the overall FY target exceeded

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Annual target Q4 target Q4 actual Actual YTD Assessment of performance reported at end of Q4

% of strategic risks monitored against the approved strategic risk register

100% 100% 100% 100% Target for Q4 and FY achieved

7.2.2 HCT The Housing Company Tshwane is a municipal entity under the Housing and Human Settlement department

and is responsible for the development and management of social housing and other forms of institutional

housing in and around Tshwane. The entity recorded a 65% achievement of their total targets for Q4.

7.2.2.1 Scorecard as reported by HCT

Table 10: Housing Company Tshwane (HCT) achieved KPIs

Key Performance Indicator

Q4 Target Actual YTD actual Management comments

Entity annual strategic review and approval.

N/A N/A Reviewed and approved

Target level achieved

95% of all units occupied

95% (Eloff) 98% 98% Target level achieved


90% (Clarina) 96% 96% Target level achieved


95% (Silwerkroon) 97% 97% Target level achieved

90% of complaints resolved within approved timeframes

90% 100% 100% Target level achieved

7% Rental collection rate of billed units above baseline of 94%

2.5% 6% 4.7 Target level achieved

4% Rental collection rate of billed units above baseline of 90%

2% 8.28% 8.71% Target level achieved

Liquidity ratio of 1:1

Liquidity ratio of 1:1 Liquidity ratio of 1:1,2

Liquidity ratio of 1:1,2 Target level achieved

31% of total expenditure spent on procurement from BEE & SMME’s

31% 114% 45% Target level achieved

Review of Internal Governance Structure and processes

Policy review and approval i.e. Supply Chain, Delegations of Authority, Human

Policies reviewed and approved - Performance Management

Policies reviewed and approved – Supply Chain, Delegation of Authority, Performance


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Key Performance Indicator

Q4 Target Actual YTD actual Management comments

Resources, Marketing & Communication, Management , Financial and Internal control

policy, Petty cash policy, Rent collection policy, Cell phone and data Policy, Bad debts Write -off Policy, Code of Conduct, Code of Ethics Policy, Training and Development Policy, Arrears and Bedtors Policies and Procedures, Anti-Corruption and Anti -Fraud Policy

Management policy ,Petty cash policy, Rent collection policy, Cell phone and data Policy ,Bad debts Write -off Policy, Code of Conduct, Code of Ethics Policy, Training and Development Policy ,Arrears and debtors Policies and Procedures, Anti-Corruption and Anti -Fraud Policy, Marketing and Communication Policy, Employee Rent Discount Policy, Travel & Subsistence Policy, Property Development Policy, Financial & Internal Control Policies and Procedures, Asset Management Policy, Leave Management Policy, Risk Management Policy

120 rental units transferred from COT to HCT

N/A N/A 120 rental units were transferred from COT to HCT effective 01 July 2016


The table below presents not achieved indicators for HCT.

Table 11: Housing Company Tshwane (HCT) not-achieved KPIs


Q4 Target Q4 Actual YDT Actual Reason for non-achievement

Mitigation measures

Detailed Designs completed in Timberlands

Detailed

planning and

designs, 100%

Completed

Detailed design at 90% completed


There were objections on the development of Timberland Social Housing. These objections caused some delays in the progress for the detailed design.

Awaiting hearing date to resolve the objections

Bulk infrastructure provision completed in Sunnyside

Bulk infrastructure provision completed

Bulk infrastructure provision is not completed


The BAC recommended that the tender should be re-advertised due to high costs (See attached BAC report).

Professional team is currently looking for alternative building technologies in order to reduce the high costs

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Mitigation measures

Internal reticulation completed in Chantelle X39

Internal reticulation 100% completed

Internal reticulation at 35% completed

Internal reticulation at 35% completed

Delayed due to the person occupying the building on site which should be demolished to make ways for the contractor.

Legal advice is sought from Attorneys to evict the person. The contractor has been instructed to re-schedule the portion of works to a later stage while the matter is been resolved.

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Mitigation measures

% of Levies collection of billed units above baseline

4% -30.45% -30.45% Tenants allocated at Clarina do not go through the normal HCT processes of affordability assessments. Their allocation is as per the court ruling. A majority of the residents are unemployed and of those who are employed, some do not earn enough to even pay the Levied amount.

Continuous engagements with the Residents sub-Committee, working with them to drive through the massage of complying with their obligation to pay the Levies. Re –education about Levy payments and the consequences of non- payment. A Junior credit controller has been appointed to engage the residents and facilitate payment arrangements. Furthermore, the residents who are employed and are intentionally defaulting on their payments are handed over to the Lawyers for eviction. In the new financial year 2017/2018, the report will be tabled to Council rescind the Clarina Court order to enforce rental payments on residents.

100 units completed in Townlands

100 units completed

49 completed at foundation level in block A1, F2 and 3H

49 completed at foundation level in block A1, F2 and 3H

Contractor’s non performance

Contractor to be put on terms starting July 2017 and applying penalties. Cession will be applied and a nominated sub-contractor will be appointed to assist expediting the process

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Mitigation measures

Budget management and implementation (90% of the annual budget spent)

25% 155% 57% The delay in the tender process for both Chantelle X39 and Sunnyside has impacted the budget spending

Procurement plan to be submitted to the Supply Chain Management in the beginning of the FY

7.2.3 SWA

The principal activity of the SWA entity is to develop, prepare, install and maintain water and sanitation

services as well as related services to these areas. It also fulfils the complete operational, financial,

marketing, human resource and legal functions. The entity provides water and sanitation services in the

northern region of Tshwane and thus has the function of a water services provider in terms of the Water

Services Act, 1997 (Act 108 of 1997). The entity has made strides by showing improvement in its

performance, with an achievement of 80% of its overall targets YTD for quarter 4.

7.2.3.1 Scorecard as reported by SWA

Table 12: Sandspruit Works Association (SWA)


Annual target

Q4 target Q4 actual Actual YTD Assessment of performance reported as at Quarter 4

Implement the Reviewed Approved Organisational structure

100% N/A N/A 0 The KPI was cancelled during the adjustment period.

SCM compliance in terms of Regulation 12 and 36 of the SCM regulations

100% 100% 100% 100% Target achieved

Compliance with Section 33, Section 16 of Companies Act 71 of 2008 and Board governance documents

100% N/A (only done in the 1st quarter)

N/A (only done in the 1st quarter)

100% Target achieved

Financial Compliance in terms s87 (11) of the MFMA annually


Achieve Revenue collections of 75% Annually

80% 65% 53.85% 53.85% Target not achieved

100% of Mitigation Strategies monitored against Approved Risk Register


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Annual target

Q4 target Q4 actual Actual YTD Assessment of performance reported as at Quarter 4

Outsourcing 40 % job opportunities to SMMEs (30%) and Co-operatives (10%) annually

40% 10% 72.8% 179.67% Target achieved

Branding 100% N/A N/A N/A The KPI was cancelled during the adjustment period.

Stakeholder meetings per ward to discuss community concerns

40 10 16 54 Target achieved

Achieve an annual target of 19.5% Non-Revenue Water

19.5% 19.5% 34.23% 34.23% Target not achieved

IT Compliance in terms of COBIT, KINH III & ITIL

100% 50% 100% 121.29 Target achieved

Reduce the number of registered indigents who consume excess of the allocated basic water consumption

45% 445 1369

Target achieved

Table 13: Reasons for underperformance and corrective measures - SWA

Targets not being met at year end

Reasons for the target not being met Mitigation measures

Achieve an Annual Target of 20% Non-revenue Water

Target not achieved due to aging infrastructure, though repairs were done on 50% bulk metres it yielded no results, the outstanding bulk metres will be handed to City’s Bulk Metre Department for auctioning.

The Utility Service department should note that this target has never been achieved by the entity, therefore it would require revision to ensure its achievement.

Achieve Revenue

collections of 75%

Annually

Target not met owing to the culture of non-payment by consumers, the accounts handed excluded government accounts as well indigent accounts and accounts with queries.

Adequate control measures to be implemented and the customer education would be beneficial to ensure improved debt collection.

8 PPERFORMANCE ON THE CAPITAL PROJECTS The total budget of 2016-17 capital projects approved by the City of Tshwane, inclusive of sub-projects in

programmes, after budget adjustment amount to R4,524,586,409.00.

There were 196 approved capital projects on the IDP and MTREF. At the end of quarter one 29% of

planned milestones were realized, and at the end of quarter two, 21.6% of planned milestones were

achieved. During budget adjustment, the City approved 236 projects including sub-projects in

programmes. The non-financial achievement at the end of quarter three is 39% which is 91 projects out of

236 that achieved their planned quarter 3 milestones.

However, the results of the quarter 4 analysis at the end of June 2017 shows that the quarter 3 total

number of projects were over stated and the verified total projects of the City including sub-projects in

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programme is 224. In quarter three numerous projects in the Finance and Utility Services departments

were treated separately due to various funding sources. These have now been reconciled by CSOP.

The table below provides a summary of performance by department on the capital projects as at 7 July

2017. These results may change due to year-end processes. The source of the financial information on

the table below is Finance department budget office as at 7 July 20173.

3 Extracted from SAP – Engela Theunissen

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Table 14: Capital projects performance

Department Non-financial Financial

Q3

Total

projects

Q4

Total

Projects

Projects that

achieved

planned

milestones

Projects that

did not

achieve

planned

milestones

%

milestone

achieved

Not

Reported

Budget (R) Expenditure (R) %

expenditure

City

Manager

4 4 2 2 50% 0 58,500,000.00 54,538,825.00 100.07%

Community

and Social

Development

Services

14 14 8 6 57% 0 134,678,229.00 108,782,202.03 80.77%

Community

Safety

3 3 3 0 100% 0 41,000,000.00 40,892,424.76 99.74%

Economic

Development

and Spatial

Planning

5 5 1 4 20% 0 101,654,200.00 47,537,897.76 46.76%

Environment

and

Agriculture

Management

9 9 7 2 77.7% 0 38,500,000.00 38,131,864.42 99,04%

Group

Financial

Services

5 4 0 - - 4 108,500,000.00 50,030,961.00 46.1%

Group

Property

Management

2 2 0 2 0% 0 22,000,000.00 - 0%

Health 4 4 2 2 50% 0 22,200,000.00 14,031,486.00 63.20%

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Department Non-financial Financial

Q3

Total

projects

Q4

Total

Projects

Projects that

achieved

planned

milestones

Projects that

did not

achieve

planned

milestones

%

milestone

achieved

Not

Reported

Budget (R) Expenditure (R) %

expenditure

Housing and

Human

Settlement

33 33 17 16 51.5% 0 569,704,001.00 545,128,118.00 95.68%

Regional

Operations

and

Coordination

1 1 - - - 1 3,000,000.00 2,832,193.00 94.4%

Roads and

Transport

53 53 425 115 47.16% 17 1,229,535,229.00 1,158,304,749.00 94.2%

Shared

Services

9 9 6 3 66.6% 0 184,700,000.00 177,663,299.00 96.2%

Utility

Services -

water &

sanitation

94

47 14 32 29.78% 1 526,854,571.00 498,363,546.00 94.6%

Utility

Services -

energy &

electricity

36 0 0 0% 36 1,483,760,179.00 500,399,529.00 33.73%

236 224 85 80 37.9% 59 4,524,586,409.00 3,236,637,094.97 71.53%

4 TRT did not submit an excel detailed progress report. This information is as per the C1 report which is an exception report, therefore CSOP is unable to confirm at this stage the list of 10 projects and their specific expenditure. Internal Audit is requested to audit this. 5 Corrective measures contained on the TRT projects is as per the C1 report submitted by TRT.

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Overall 37.9% of projects achieved their planned milestones, with 59 of 224 projects not reporting

progress. This correlates to 71,53% expenditure to date. To date R1,287,949,314.03 is unspent. Various

reasons were provided for the under-performance to date, including poor planning, delays in SCM during

the financial year, under-performing service providers and delays due to third parties (approvals from

other organs of State, late delivery of material and community disruptions).

8.1 ANALYSIS PER DEPARTMENT OR CLUSTER

8.1.1 CITY MANAGER The department’s projects consist of insurance replacements and the Neighbourhood Development

Partnership Grant of Tsosoloso Programme. The insurance replacements projects failed to achieve the

planned milestones due to departments not procuring using Insurance system as they were not linked.

The Tsosoloso programme achieved 5km and 6km paving walk ways at Brazzaville along Maude street

and Silverton along Waltloo Road and Petroleum Road respectively.

Table 15: City Manager Q4 Performance

Project Name Annual Delivery Target

YTD Progress against Annual Target

Annual Target Achieved Yes/No

Adjusted Budget 2016-17 (R)

YTD Expenditure 2016-17 (R)

9.712449.1.001 Insurance replacements (CTMM Contribution)

Replacement of Capital Assets for which the claims were settled by the Insurers

The actual replacements reported done not clear on the report

No 5,000,000 2,377,825

9.712450.1.001 Insurance replacements

Replacement of Vehicles

The actual replacements reported done not clear on the report

No 5,000,000.00 3,661,002.00

9.712533.1.001 Brazzaville Walkways

Completion of sidewalks

100% paving complete

Yes 24,250,000.00 22,737,844.00

9.712533.1.001 Watloo Walkways

Construction of sidewalks completed


Yes 24,250,000.00 25,762,154.00

8.1.3 COMMUNITY & SOCIAL DEVELOPMENT SERVICES

The cluster is a combination of Social Services, Sport & Recreation and Arts & Culture. The cluster has

14 projects and 8 projects achieved planned quarter 4 milestones.

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Table 16: Community & Social Development Services Q4 Performance Achieved Projects

Department Project Name YTD Progress against Annual Target

Project Future for next MTREF



Community and Social Development Services: SRAC

9.711432.2.015 Olievenhoutbosch multi-purpose sport facility

Project completed.

CAPS - requested funds for future phases.

14,225,367 14,210,992


9.711439.1.015 Solomon Mahlangu Freedom Square - Cultural Centre

Project completed. Payment of consultant fees.

CAPS submission of future budget requirements.

1,589,837 1,589,815


9.712260.1.015 Lotus Gardens multi-purpose sport facility

Progress at 95%. Challenges experienced on the capacity of the contractor. Practical completion by mid July 2017.


8,000,000 7,516,991


9.712773.1.013 Capital Moveable's

Delivery of books, purchasing of IT equipment and library furniture completed.

Ongoing annual library grant.

6,978,229 6,020,828


9.712883.1.015 Upgrading of Zithobeni Sport Stadium


No action required.

1,491,516 1,166,150


9.712941.1.015 Greening of Sports Fields

Project completed.

Ongoing Greening Programme.

11,086,363 11,080,796


9.712910.1.015 New Ga-Rankuwa library

Progress at 90%. Roof completed and currently busy with finishes. Anticipated date of opening targeted for mid July 2017

No action required.

18,670,351.00 9,936,346


9.712936.1.015 Cullinan Library Park

Project completed. IT connection in process.

2,190,951.00 2,190,949

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Table 17: Completed projects for Sport & Recreation, Arts & Culture

The Community and Social Development department failed to achieve milestones on 6 projects mainly

due to budget limitations. The department indicates requests were sent to the Provincial department for

additional funding to complete the remaining scope of the work. The non-achieved projects are listed on

the table below.

Table 18: Community & Social Development Services Q4 Performance Non-Achieved Projects

Department Project Name Reasons Annual Target not achieved



Department report on Project Future for next MTREF (Projects not achieved 2016-17)

Comments from CSOP

Community and Social Development Services: Social

9.712681.1.015 Multipurpose Development Centre next to Phomolong Clinic

Tender cancelled. Implementation of project to be put on hold due to budget limitations

7,700,000 2,678,362 Advised the Community and Social Development Department to make means to spend the allocation.

An investigation to be conducted to determine whether the project is cancelled or the budget will be rolled over for implementation. The office of the COO to monitor the risk


9.712948.1.017 Social Development centre in Hammanskraal

Budget exhausted to complete planned scope. Letter sent to Provincial Social Development to address funding shortfall

14,000,000 13,999,861 CoT wrote to Provincial Social Development to address funding shortfall

The office of the COO to follow up with the Provincial Department for the request on additional funds to monitor the risk of “white elephant” projects

Project Name Location (Region &

Ward)

Date of final

completion

Date of official

opening

Completion

certificates

submitted for

audit (Yes/No)

Greening of Sport

fields - Rethabiseng

Ward 103, Region 7 6 June 2017 To be determined Yes

Olievenhoutbosch

multi-purpose sport

facility

Ward 77, Region 4 17 October 2017 To be determined Yes

Lotus Gardens multi-

purpose sport facility


New Ga-Rankuwa

Library


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Department report on Project Future for next MTREF (Projects not achieved 2016-17)

Comments from CSOP


9.712954.1.017 Social Development centre in Winterveldt





9.712955.1.017 Social Development centre in Mabopane





9.712915.1.015 Upgrading of Caledonian Stadium

Project scope revised and annual target not revised. The 2016-17 achieved scope is concept designs.

21,000,000 10,785,016 MTREF budget allocation for 2017-18.

An investigation to be conducted to determine whether the budget is approved and monitor the office of COO to monitor future plans


9.712916.1.015 Upgrade Refilwe Stadium

Previous tender of contractor cancelled and existing consultant team appointment to be extended and EAC approval required.

745,615 606,095 MTREF budget allocation for 2017-18.

An investigation to be conducted to determine whether the budget is approved and the office of COO to monitor future plans

8.1.4 COMMUNITY SAFETY

The cluster is the combination of Emergency Services and TMPD Tshwane Metro Police Department. It

has 3 projects and all planned targets were achieved.

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Table 19: Community Services Q4 Performance Achieved Projects


Project Future plans for next MTREF

Adjusted Budget 2016-17

YTD Expenditure 2016-17

Community Safety: Emergency Services

9.711455.1.015 Renovation & Upgrading of Facilities

Additional air-conditioning installations completed

No action required

6,000,000 5,903,080.00

Community Safety: Emergency Services

9.712587.1.015 Emergency Services Tools and Equipment

Pieter Delport control room console installations completed

No action required

5,000,000 4,992,236.60

Community Safety: TMPD

9.712500.1.015 Sub-project: Fire-arms

Procurement of 1250 X 9mm pistols. 10 X Speed Law Enforcement Camera with accessories 5 X Digital SLR Cameras with accessories 8 X Cardio Stationary Rowing Machines 12 X Cardio Stationary Exercise Bicycles 17 X Cardio Stationary Striders/Glyders 275 X i7 Desktop PC complete with screen 73 X i7 Laptop 42 X PC Screens 6 X Colour Printers 88 X Mono Printers (Black) 18 X Ethernet Network Data Switch 3 X Digital Video Recorder 10 X Multi 9mm Workstation Fire Arm Safes 14 X Gymnasium Incline Benches 15 X Gymnasium Flat Benches 10 X IT Barcode Scanners

Procurement of Policing equipment as identified during the strategic sessions.

30,000,000 29,997,108

8.1.5 ECONOMIC DEVELOPMENT & SPATIAL PLANNING The cluster has a total of 5 projects and 3 projects recorded a zero expenditure at the end of the quarter.

The reasons for under-performance ranges from under-performing consultants, delays in the SCM

process during the financial year and poor planning and project management.

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Table 20: Economic Development & Spatial Planning Q4 Performance Non-Achieved Projects




Department report on Project Future plans for next MTREF (Projects not achieved 2016-17)

Comments from CSOP

Economic Development and Spatial Planning

9.712977.1.015 Business Process Outsourcing (BPO) Park Construction

Suspension of the services of the consultant. The Contractor has issued a notification of delay, siting that, given the unavailability of sign-off by the professional team on pre-concrete and underground services, they will be unable to proceed with the work.

50,000,000 43,537,898 An amount of R50 million has been budgeted in 2017/18 for this project.

An investigation to be conducted to determine whether the budget is approved and the office of COO to monitor future plans


9.712985.1.015 Brick Making Facility

The project declared as a saving on the basis that neither a feasibility study nor a business plan was developed

4,000,000 0 None An investigation to be conducted to determine whether the project is cancelled or the budget will be rolled over for implementation. The office of the GSO to monitor the risk


9.712988.1.015 Informal Trade Market (Inner City)

Delays in the project since the beginning of the 2016/17 financial year.

7,400,000 0 An amount of R6,9 million has been budgeted in 2017/18 for this project.

The annual target was to complete upper floor of Marabastad centre Barolak but annual achievement is appointment letter for contractor. The office of the GSO to monitor the risk during implementation

Economic Development and Spatial

9.713023.1.021 Inner City Regeneration

A decision for the re-allocation of

36,254,200 0 Reprioritisation to take place in 2017/18.

This is a new project that received

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Comments from CSOP

Planning: City Planning

the funding was not established

funding during budget adjustment. To assess whether feasibility study or business plan exists for the project.

8.1.6 ENVIRONMENT & AGRICULTURE The department has 9 projects and achieved 7 projects in quarter 4.

Table 21: Environment & Agriculture Q4 Performance Achieved Projects




Environment and Agriculture Management

9.711562.1.015 Atmospheric Pollution Monitoring Network

All instruments were delivered awaiting installations

3,000,000.00 2,942,078.65


9.712092.1.015 240 Litre Containers

4244 x green bins delivered

16,000,000.00 15,991,370.00


9.712808.1.015 Development of Klipkruisfontein Cemetery

Project Completed

400,000.00 400,000.00


9.712809.1.015 Development of Tshwane North Cemetery

The upfront payment to Eskom has recently been effected.

1,250,000.00 1,220,503.02


9.712868.1.015 Upgrading of the market trading system

Project Completed

5,500,000.00 5,406,473.47


9.712964.1.015 Refurbishment of landfill sites

Project Completed

5,000,000.00 4,830,976.28


9.712983.1.015 Extension of Garankuwa Cemetery

Project Completed

1,200,000.00 1,199,729.00

Two projects failed to achieve planned targets as indicated below.

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Table 22: Environment & Agriculture Q4 Performance Non-Achieved Projects





Comments from CSOP


9.710276 .1.015 Upgrading and Extension of Market Facilities

Delivery delayed at harbour

5,500,000 5,498,480 Plans not recorded

The custodian department must be clarified as this appears in Economic development as well.


9.713024.1.015 Upgrade infrastructure Nature Reserves

Not specified 650,000 642,254 Funds were reprioritized to another key priority project in the Department

The progress not reported. It is unclear where the funds were spent. The office of the COO to provide guidance.

8.1.7 GROUP FINANCIAL SERVICES The department did not submit the quarter 4 progress report. The financial analysis indicates that 46%

expenditure was achieved. This is under-performance, the project of BPC and SCOA recorded a zero

expenditure and corporate capital movables received additional funding during budget adjustment but the

funds were not spent.

Table 23: Group Financial Services Q4 Performance Reports not submitted

Department Project Name Adjusted Budget 2016-17 (R)


Group Financial Services 9.712444.1.001 Buildings & Equipment

10,000,000 7,542,417

Group Financial Services 9.712444.1.015 Buildings & Equipment (security at the stores)

30,000,000 0

Group Financial Services 9.712961.1.015 BPC and SCOA

30,000,000 19,253,508

Group Financial Services 9.712978.1.015 Automation of supply chain

18,500,000 8,577,227

Group Financial Services 9.712989.1.007 Corporate capital movables

10,000,000 7,542,417

8.1.8 GROUP PROPERTY Group Property did not achieve the 2 projects that were planned for the financial year. The department

submitted an incomplete report hence a detailed analysis could not be achieved.

64

52

Table 24: Group Property Q4 Performance Non-Achieved Projects





Comments from CSOP

Group Property Management

9.712743.1.015 Replacement/Modernisation of all the lifts within various council buildings (City Wide)

Tender non-responsive

2,000,000 0 Re-Advertisement

An investigation to be conducted to determine whether the budget is approved and the office of GSO to monitor future plans


9.712960.1.015 City Hall Renovations

Department not informed about its progress. No handover was done from the EM'S office

20,000,000 0 Not identified The office of the GSO to facilitate the project transfer and monitor the risk.

8.1.9 HEALTH The total number of projects is 4 and the department achieved 2 projects; namely the construction of new

clinic in Doornpoort and the upgrading and extension of Zithobeni clinic. The department recorded that

both projects were completed and there are no future plans on both projects.

Table: Health Q4 Performance Achieved Projects




Health 9.710075.1.015 New clinic in Doornpoort Project completed 661,714.00 622,885.85

Health 9.712683.1.015 Upgrade and extension of Zithobeni Clinic Project completed 3,158,657.00 2,812,956.00

2 Projects were delayed due to removal of illegal occupants and slow progress of the contractor

respectively.

65

53

Table 25: Health Q4 Performance Non-Achieved Projects





Comments from CSOP

Health 9.712278.1.015 Upgrading of Clinic Dispensaries

Project was delayed due to removal of illegal occupants

11,341,343 5,566,696 Not reported The full asset was planned to be delivered but only earthworks done. The office of the COO to follow up on the roll over to 2017-18 and monitor the risk

Health 9.712684.1.015 Refurbishment of Rayton Clinic

Project delayed due to late appointment of contractor

7,038,286 5,029,661 Not reported The annual target was earthworks and start with brick work. Progress reported is earthworks. The future plans not indicated. The office of the COO to follow up on the roll over to 2017-18 and to monitor the risk of “white elephant” projects

8.1.10 HOUSING & HUMAN SETTLEMENT

The financial analysis of the department is as follows:

Department Project Name Project Number Adjusted Budget

(R)

YTD Expenditure

2016-17

(R)

Housing and

Human

Settlement

Project Linked

Housing - Water

Provision

9.710863.2.005 132,451,551.00 122,674,553.00

66

54

Department Project Name Project Number Adjusted Budget

(R)

YTD Expenditure

2016-17

(R)

Housing and

Human

Settlement

Sewerage - Low Cost

Housing

9.710864.2.005 146,437,500.00 141,925,554.00

Housing and

Human

Settlement

Roads & Stormwater -

Low Cost Housing -

Project Linked

Housing

9.710865.2.005 197,127,207.00 191,366,380.00

Housing and

Human

Settlement

Roads & Stormwater -

Low Cost Housing -

Project Linked

Housing

9.710865.2.015 32,000,000.00 29,335,608.00

Housing and

Human

Settlement

Land acquisitions

(Region 7, 5 and 4)

9.710868.2.005.A 31,428,993.00 30,970,000.00

Housing and

Human

Settlement

Development of

Saulsville hostels

9.711712.2.005 10,000,000.00 9,928,559.94

Housing and

Human

Settlement

Development of

Mamelodi hostels

9.711713.1.005 10,000,000.00 9,928,559.94

Housing and

Human

Settlement

Townlands,

Marabastad

9.713003.1.005 10,258,750.00 8,998,903.51

The total projects for Housing & Human settlement including sub-projects in programmes is 33

and 17 projects achieved planned quarter 4 milestones and annual targets. The projects that did

not achieve the planned targets is due to delays in WULA approvals, under-performing service

providers, budget constraints, late appointment of contractors and delays in township

establishment process.

Table 26: Housing & Human Settlement Q4 Performance of Projects Achieved Projects

Department Project Name Annual Delivery

Target

YTD

Progress

against

Annual

Target

Department report

on Project Future

plans for next

MTREF

(Projects not

achieved 2016-17)

Reasons

Annual Target

not achieved

Housing and

Human

Settlement

9.710863.2.005

Water Rama City

Installation of

water services

(300 stands)

280 stand

connections

R21 000 000.00

budgeted for the

2017/18 financial

year

Target achieved

67

55


Target

YTD

Progress

against

Annual

Target

Department report

on Project Future

plans for next

MTREF

(Projects not

achieved 2016-17)

Reasons

Annual Target

not achieved

Housing and

Human

Settlement

9.710863.2. 005.D

Water Kopanong

phase 2

Construction of

water (315 stands)

690 stand

connections

Target achieved

Housing and

Human

Settlement

9.710863.2. 005.L

Water Winterveldt

completion of

water network

170 stand

connections

R25 000 000.00

budgeted for the

2017/18 financial

year

Target achieved

Housing and

Human

Settlement

9.710863.2. 005.L

Water Refilwe

Manor (Waste

Water Treatment

Works)

Construction of

WWTW

Upgraded

WWTW

None Target achieved

Housing and

Human

Settlement

9.710863.2. 005.L

Water Refilwe

Manor Reservoir

Construction of

Reservoir

None,

construction

still in

progress,

multi-year

progress.

R42 000 000.00

budgeted for the

2017/18 financial

year.

Target achieved

Housing and

Human

Settlement

9.710863.2. 005.M

Water Zithobeni

8&9

Construction of

water and sewer

reticulation, bulk

water and sewer

line (100 stands

connections)

210 stand

connections

R5 500 000.00

budgeted for the

2017/18 financial

year.

Target achieved

Housing and

Human

Settlement

9.710864.2.005

Sewer Rama City

Completion of

laying of pipes in

Rama City

280 stand

connections

R21 000 000.00

budgeted for the

2017/18 financial

year

Target achieved

Housing and

Human

Settlement

9.710864.2. 005.D

Sewer Kopanong

Ext 1

Completion of

sewer reticulation

690 stand

connections

Target achieved

Housing and

Human

Settlement

9.710864.2. 005.H

Sewer Zithobeni

Heights

Completion of

laying of pipes at

Zithobeni Heights

1152 stand

connections

Target achieved

Housing and

Human

Settlement

9.710864.2.005.

Sewer Winterveldt

Upgrading of

sewer network

119 stand

connections

R25 000 000.00

budgeted for the

2017/18 financial

year

Target achieved

68

56


Target

YTD

Progress

against

Annual

Target

Department report

on Project Future

plans for next

MTREF

(Projects not

achieved 2016-17)

Reasons

Annual Target

not achieved

Housing and

Human

Settlement

9.710864.2. 005.N

Refilwe Manor Ext

9 - 2 x pump

stations

Upgrading of

Water Waste

Treatment Works

(WWTW)

None,

construction

still in

progress,

multi-year

project.

R22 000 000.00

budgeted for the

2017/18 financial

year.

Target achieved

Housing and

Human

Settlement

9.710864.2. 005.O

Sewer Kudube unit

9

Construction of

10ML water

reservoir & two

sewer pump

stations.

Sewer

reticulation

line completed

R40 000 000.00

budgeted for the

2017/18 financial

year.

Target achieved

Housing and

Human

Settlement

9.710865.2.005.

Roads &

Stormwater

Winterveldt

Construction of

2.19km of roads

2.624 km R43 000 000.00

budgeted for the

2017/18 financial

year.

Target achieved

Housing and

Human

Settlement

9.710865.2. 005.B

Roads &

Stormwater

Thorntreeview

Construction

1.9Km roads, 40m

bridge crossing

(roadlink)

2.5 km roads

& 40m bridge

crossing

R50 000 000.00

budgeted for the

2017/18 financial

year.

Target achieved

Housing and

Human

Settlement

9.710865.2. 005.I

Roads &

Stormwater

Soshanguve X5

Construction of

phase 1: 3,825 km

of roads and

stormwater

systems.

3.825 km R72 000 000.00

budgeted for the

2017/18 financial

year.

Target achieved

Housing and

Human

Settlement

9.710865.2. 005.K

Roads &

Stormwater

Soshanguve X13

Completion of

construction of

Roads in

Soshanguve X13

3 km R32 000 000.00

budgeted for the

2017/18 financial

year.

Target achieved

Housing and

Human

Settlement

9.710865.2. 005.L

Roads &

Stormwater

Zithobeni Ext 8&9

Completion of

stormwater

drainage in

Zithobeni Ext 8&9

5.5 km Target achieved

69

57

Table 27: Housing & Human Settlement Q4 Performance of Projects Non-Achieved Projects

Department Project Name Reasons Annual Target

not achieved

Department report

on Project Future

plans for next

MTREF

(Projects not

achieved 2016-17)

CSOP

COMMENTS

Housing and

Human

Settlement

9.710863.2.005 Water

Sunnyside

Project has been put on

hold.

To assess whether

it will continue in

the outer MTREF

Housing and

Human

Settlement

9.710863.2. 005.C

Water Mabopane Ext

1

Allocated budget has

been exhausted.

R26 000 000.00

budgeted for the

2017/18 financial

year

Noted

Housing and

Human

Settlement

9.710863.2. 005.L

Water Chantel x39

Project delayed by

township establishment

processes

R4 691 297.00

budgeted for the

2017/18 financial

year

Noted

Housing and

Human

Settlement

9.710863.2. 005.L

Water Fortwest 4&5

Outstanding WULA

approval from the

Department of Water and

Sanitation and allocated

budget for the 2016/17

financial year exhausted.

R25 000 000.00

budgeted for the

2017/18 financial

year

Noted

Housing and

Human

Settlement

9.710863.2. 005.L

Water Zithobeni

Heights

Late appointment of

contractor

R42 000 000.00

budgeted for the

2017/18 financial

year

Noted

Housing and

Human

Settlement

9.710864.2.005

Sewer Sunnyside

Project has been put on

hold.

To assess whether

it will continue in

the outer MTREF

Housing and

Human

Settlement

9.710864.2.005.

Sewer Chantel x39

Project delayed by

township establishment

processes

R7 175 471.00

budgeted for the

2017/18 financial

year.

Noted

Housing and

Human

Settlement

9.710864.2. 005.C

Sewer Mabopane Ext

1


been exhausted.

R26 000 000.00

budgeted for the

2017/18 financial

year

Noted

Housing and

Human

Settlement

9.710864.2. 005.L

Sewer Fortwest 4&5

Outstanding WULA

approval from the

Department of Water and

Sanitation and allocated

budget for the 2016/17

financial year exhausted.

To assess whether

it will continue in

the outer MTREF

70

58

Department Project Name Reasons Annual Target

not achieved

Department report

on Project Future

plans for next

MTREF

(Projects not

achieved 2016-17)

CSOP

COMMENTS

Housing and

Human

Settlement

9.710864.2. 005.M

Sewer Zithobeni 8&9

Contractor suspended

work on site due to

outstanding roads

invoice

R5 500 000.00

budgeted for the

2017/18 financial

year.

Noted

Housing and

Human

Settlement

9.710865.2. 005.H

Roads & Stormwater

Fortwest 4&5


been exhausted.

R40 000 000.00

budgeted for the

2017/18 financial

year.

Noted

Housing and

Human

Settlement

9.710865.2. 005.J

Roads & Stormwater

Soshanguve X12

Dispute between the

contractor and Engineer

regarding the work done.

R26 422 432.00

budgeted for the

2017/18 financial

year

Noted

Housing and

Human

Settlement

9.710868.2. 005.A

Land acquisitions

(Region 7, 5 and 4)

Progress report not

submitted

The office of the

COO to facilitate

the submission of

the progress report

for annual report

purpose

Housing and

Human

Settlement

9.711712.2.005

Development of

Saulsville hostels

Consultant still busy with

urban development

framework.

R10 000 000.00

budgeted for the

2017/18 financial

year.

Noted

Housing and

Human

Settlement

9.711713.1.005

Development of

Mamelodi hostels

Consultant still busy with

urban development

framework.

R10 000 000.00

budgeted for the

2017/18 financial

year.

Noted

Housing and

Human

Settlement

9.713003.1.005

Townlands,

Marabastad

Contractor behind

schedule, unable to

reach target of 100 units

by end June 2017.

To assess whether

the funds roll over

was submitted

8.1.11 REGIONAL OPERATIONS & COORDINATION

The department has one project, i.e. JoJo Tanks - Re Aga Tshwane. A progress report was not

submitted for quarter 4. The allocated budget is R3 million and expenditure recorded is R2,8

million.

71

59

8.1.12 ROADS & TRANSPORT

The overall performance of the department is summarized as follows:

Department Total projects

Projects Achieved

Projects Not Achieved

Projects Not Reported

Budget (R) Expenditure (R)

Roads & Transport

38 15 6 17 1,229,535,229.00 1,158,304,749.00

TRT 15 Refer to table below

Total 53 15 6

Tshwane Rapid Transport did not submit the capital project report in the format required,

however, did submit an annual performance report with certain information. The information

contained here-in is extracted from that annual performance report, and may not fully reflect all

the sub-projects.

Table 28: TRT projects reporting as per annual performance report

Capital Projects: Seven largest in 2016/17

No Project Name

and detail

Start

Date

End Date Total Value (VAT

Incl.)

Ward

affected

Works

completed

1 Construction of

Line 1A: CBD to

Rainbow

Junction Section

1A-4B (Rainbow

Junction Bypass

road)

May-16 August-17 R113, 346, 050.00 96 No

2 Line 2B: Atterbury Rd (btw Louis Avenue Rd to January Masilela Rd)

May-16 Dec-17 R173,278,484.00 46 No

3 Line 2C - Watloo

Rd (btw Simon

Vermooten &

Denneboom

Station)

Jan-17 Feb-18 R92,471,797.94 38, 43,

86

No

4 Belle Ombre

CNG Bus Depot

– Civil Works

Mar-16 Jul-17 R58,486,018.50 58 No

72

60

Capital Projects: Seven largest in 2016/17

No Project Name

and detail

Start

Date

End Date Total Value (VAT

Incl.)

Ward

affected

Works

completed

5 Belle Ombre CNG Bus Depot – Building Works

Feb-16 Jul-17 R89,128,468.38 58 No

6 NMT Facilities Line 2A (Park Street)

Apr-16 Jul-17 R33,279,615.32 81,92 No

7 Tender for the Design, Build, Installation, Operation and Maintenance of an Automated Fare Collection System

01 June

2014

01-Dec-

20176

R955 203 270.00

Table 29: TRT non-achieved projects and corrective measures

6 Department indicated in their report that this was 2027. It has been adjusted, but does require verification.

IDP project

nr 712591

Reasons for non-achieved milestone

Corrective measures to be implemented

Date of implementation

Responsible official

Construction of Line 2B (WP3) - Atterbury Rd between Lois Ave and January Masilela

64% completion of construction of structural Works. Works are approximately 5 weeks behind programme due to Contractor’s performance and cash flow problems.

The Contractor has appointed a sub-contractor to assist with the completion of the structural concrete works. This has resulted in an improvement on the rate of progress which will continue to be monitored.

Expected completion date is End-December 2017.

Likano Pitso

Construction of Belle Ombre CNG Bus Depot: Bulk Earth Works

100% Completion. Bulk Earth Works completed. Delays due to the appointment of the CNG and Diesel equipment supply.

No need for a corrective measure as the all appointments has been done.

End Sep 2017. Sphelele Dlamini

Construction of Belle Ombre CNG Bus Depot: Civil Works

94% Completion. Contractor behind due to cash flow issues affecting purchasing of concrete.

Weekly monitoring on planned progress vs actual progress has been implemented.

End July 2017. Sphelele Dlamini

Construction of Belle Ombre CNG Bus Depot: Building Works

90% Completion. Additional work was given to the Contractor, changing the Scope of Works therefore the percentage. Contractor is on programme per the revised programme.

No need for a corrective measure as the Contractor is on programme and expected completion is end May 2017.

End July 2017. Sphelele Dlamini

Construction of Line 1A: CBD to Rainbow

55% Completion. Contractor behind due to the process of obtaining

Constant contact with PHRA-G to speed up the process.

Demolishing permit obtained on 24 March

Sphelele Dlamini

73

61

The table below contains Roads and Transport projects that achieved targets.

Table 30: Roads & Transport Q4 Performance of Projects Achieved Targets


Target

YTD

Progress

against

Annual

Target

Department

report on

Project Future

plans for next

MTREF

(Projects not

achieved 2016-

17)

Adjusted

Budget (R)

YTD

Expenditure

2016-17 (R)

Roads and

Transport

9.710115.1.015

Contributions:

Services for

Township

Development

Payment of

contributions to

Ptn 1 of erf 2

Verwoerdburgstad

and Hondsrivier

508 JR: and

Portion 379 and

378 of the farm

Olievenhoutbosch

389-JR

100% Amount of R

678 337.87

need to be paid

to Developer of

Boardwalk x 18

in 2017/2018

6,967,621.00 6,967,620.99

Roads and

Transport

9.711164.2.005

Block W -

Stormwater

Drainage

(Soshanguve)

Design Review The detail

design

review has

been

completed.

Construction

stage

805,376.00 804,105.37

Roads and

Transport

9.712220.1.005.

A

Soshanguve

Block BB North

West (A)

Road = 1.6km,

Sidewalks =

0.84km; Speed

humps = 10No.

and Road signs =

10No. completed.

Project

completed.

Road =

1.68km,

Sidewalks

= 2.694km;

Speed

humps =

25No. and

Road signs

= 12No.

completed.

Project

completed.

Project

completed

0

11,999,956.40

Roads and

Transport

9.712220.1.005.

E

Soshanguve

Block BB North

East (E)

Sidewalks =

0.6km completed.

Project completed

Sidewalks

= 1.578km

completed.

Project

completed.

Project

completed

0

3,637,033.71

Junction Section 1A-4B (Rainbow Junction Bypass road)

the permit for demolishing the Fritz Dwelling which fell within the road reserve.

2017. Demolishment completed.

74

62


Target

YTD

Progress

against

Annual

Target

Department

report on

Project Future

plans for next

MTREF

(Projects not

achieved 2016-

17)

Adjusted

Budget (R)

YTD

Expenditure

2016-17 (R)

Roads and

Transport

9.712220.1.005.F

Soshanguve

Block GG North

West (F)

Road = 1.042km;

Sidewalks =

0.5km; Speed

humps = 6No.

and Road signs =

6No. completed

Road =

1.042km;

Stormwater

= 0.16km;

Sidewalks

= 2.401km;

Speed

humps =

16No. and

Road signs

= 14No.

completed.

Project

completed.

Project

completed

0

8,485,192.53

Roads and

Transport

9.712220.1.005.

G Soshanguve

Block GG Central

North (G)

Sidewalks =

0.3km. Speed

humps = 10No.

and Road signs =

10No.

Road =

0.069km;

Sidewalks

= 2.546km;

Speed

humps =

23No. and

Road signs

= 31No.

completed.

Project

completed.

Project

completed

0

5,824,171.31

Roads and

Transport

9.712220.1.005.

H Soshanguve

Blocks GG, LL &

NN North (H)

Road = 4.535km,

Sidewalks =

1.9km; Speed

humps = 15No.

and Road signs =

15No. completed

Roads =

5.843km,

Stormwater

= 0.551km;

Sidewalks

= 2.810km;

Speed

humps =

45No. and

Road signs

= 45No.

Completed.

Snaglist

underway.

None

0

27,548,540.88

Roads and

Transport

9.712220.1.005.I

Soshanguve

Block NN North

Central (I)

Sidewalks 2.1km;

Speed humps = 5;

No. and Road

signs = 5

completed

Road =

0.525km,

Stormwater

= 0.525km;

Sidewalks

= 5.30km;

Project

completed

0

14,728,492.15

75

63


Target

YTD

Progress

against

Annual

Target

Department

report on

Project Future

plans for next

MTREF

(Projects not

achieved 2016-

17)

Adjusted

Budget (R)

YTD

Expenditure

2016-17 (R)

Speed

humps =

24No. and

Road signs

= 44No.

completed.

Project

completed.

Roads and

Transport

9.712220.1.005.J

Soshanguve

Block NN Central

(J)

Snag list Project

completed

Project

completed

0

1,280,752.29

Roads and

Transport

9.712220.1.005.

M Soshanguve

Block IA East (M)

Road = 1.75km

completed; Speed

humps = 5No.

and Road signs =

5No. completed

Road =

1.750km;

Sidewalks

= 0.30km;

Speed

humps =

13No. and

Road signs

= 63No.

completed.

Project

completed.

Project

completed

0

4,474,408.28

Roads and

Transport

9.712220.1.005.

N Soshanguve

Block IA West

(N)

Stormwater

.36km; Road =

3.1km, Sidewalks

= 1.0km; Speed

humps = 5; No.

and Road signs =

5No. completed

Roads =

3.10km,

Stormwater

= 0.37km;

Sidewalks

= 3.842km;

Speed

humps =

22No. and

Road signs

= 44No.

completed.

Project

completed.

Project

completed

0

24,499,998.70

Roads and

Transport

9.712220.1.005.

P Soshanguve

Block GG East

Area 1 (P)

Roads = 3.4km

completed;

Sidewalks =

2.2km; Speed

humps = 10No.

Roads =

3.50km;

Sidewalks

= 1.50km;

Speed

humps =

20No. and

Project

completed

0

16,280,955.24

76

64


Target

YTD

Progress

against

Annual

Target

Department

report on

Project Future

plans for next

MTREF

(Projects not

achieved 2016-

17)

Adjusted

Budget (R)

YTD

Expenditure

2016-17 (R)

and Road signs =

10No. completed

Road signs

= 44No.

completed.

Project

completed.

Roads and

Transport

9.712220.1.005.

Q Soshanguve

Block GG East

Area 2 (Q)

Road = 1.044km,

Sidewalks =

2.0km; Speed

humps = 5No.

and Road signs =

5No. completed

Road =

1.445km;

Sidewalks

= 3.22km;

Speed

humps =

34No. and

Road signs

= 63No.

completed.

Project

completed.

Project

completed

0

13,473,061.42

Roads and

Transport

9.712220.1.005.

S Soshanguve

Block BB Central

(S)

Stormwater 1.1km

- Road =

1.229km,

Sidewalks =

0.6km; Speed

humps = 4No.

and Road signs =

6No. completed

Roads =

3.229km;

Stormwater

= 1.465km;

Sidewalks

= 1.482km;

Speed

humps =

30No. and

Road signs

= 51No.

completed.

Project

completed.

Project

completed

0

23,893,761.64

Roads and

Transport

9.712895.1.015

Upgrading of

Road from gravel

to tar in Ekangala

Ward 11 & 12

Design Review 100%

complete

Construction to

commence in

2018/2019

Financial year

150,000.00 1,500.00

The 6 projects were behind schedule due to disputes, community disruptions and slow progress

of contractors. Two (2) projects reported zero expenditure.

77

65

Table 31: Roads & Transport Q4 Performance of Projects


Adjusted Budget



CSOP COMMENTS

Roads and Transport

9.710657.2.015 Mabopane Station Modal Interchange

The contractor could not start with any work per his program before the integrity of the existing work were properly investigated and actions decided on.

29,097,344 29,096,482 Scope of work for 2016/17 financial year will be in cooperated on 2017/18 final year and the construction program will be adjusted accordingly

Noted

Roads and Transport

9.710220.2.015Rehabilitation of Stormwater Systems & Sidewalks

Company no longer exists and no longer registered.

5,525,100 0 Court order will be paid once the company exists and e procurement registered.

The office of COO to advise on way forward

Roads and Transport

9.712220.1.005.C Soshanguve Block BB Central South (C)

Slow progress of the contractor.

0 3,995,559 Snag list outstanding

The office of COO to monitor final hand over

Roads and Transport

9.712220.1.005.K Soshanguve Block NN South (K)


0 3,592,547 Reduction of scope

Noted

Roads and Transport

9.712220.1.005.L Soshanguve Block BB East (L)

Community disruptions

0 17,930,373 Balance of the scope to be completed in the 2017/18 financial year

Noted

Roads and Transport

9.712947.1.015 Improvement of dirt road leading to Clover hill club, Bronkhorstspruit dam

Reasons not provided 2,500,000 0 No budget allocated in the 2018/2019 financial year

Noted

8.1.13 SHARED SERVICES

The department has 9 projects and 6 achieved the planned milestones. 3 Projects were delayed

due to delivery and approvals.

78

66

Table 32: Shared Services Q4 Performance of Projects Achieved Targets

Department Project Name Annual Delivery Target



Adjusted Budget (R)


Shared Services - GICT

9.710200.1.01 Upgrade of IT Networks

Procurement and migration of network equipment

Procured network equipment

None submitted

10,000,000 8,981,437


9.710268.1.015 Computer Equipment Deployment - End user computer hardware equipment

Procurement of desk top equipment as per request

Equipment was deployed per user requests

None submitted

15,500,000 14,995,473


9.710344.1.015 Implementation of Storage Area Network

Upgrading of Storage Area Network at Tshwane Wide

Server and storage procured

None submitted

10,000,000 10,000,000


9.712554.1.015 E-Initiative Supporting the Smart City

One business process automated

Investor portal Competed

None submitted

20,000,000 19,345,728


9.712981.1.010 Smart Connect

Training and support on Smart Connect system

Project closed

None submitted

200,000 200,000


9.713005.1.015 Tshwane House IT Infrastructure

Procurement of data centre infrastructure and commissioning

Datacentre infrastructure procurement complete

None submitted

85,713,288 85,713,287

Table 33: Shared Services Q4 Performance of Projects Not Achieved


Adjusted Budget (R)



CSOP COMMENTS


9.712969.1.015 Credit Control Solution

Delays in the delivery of hardware

8,286,712 8,286,712 Development and testing of the solution is completed successfully.

Noted

79

67


Adjusted Budget (R)



CSOP COMMENTS

The solution is at the pre-production area.


9.710213.1.015 One Integrated Transaction Processing System


25,000,000 24,576,760 Waiting for hardware

Noted

Shared Services - GHC

9.712953.1.020 Tshwane Leadership and Management Academy (City Wide)

Delays in approving Q-files and tender documents from SCM office

10,000,000 5,563,902.00 Waiting for hardware

Noted

80

68

8.1.14 UTILITY SERVICES

The cluster consists of Energy & Electricity and Water & Sanitation. The total projects were

reconciled to 86. The analysis of Energy & Electricity non-financial milestones was not done due

to failure to submit the progress report.

A Utility Services: Energy & Electricity The financial analysis of Energy & Electricity is as follows:

Department Project Name Project Number Adjusted Budget (R)


Utility Services - Energy & Electricity

Upgrading/ Strengthening of Existing Network Schemes

9.710005.1.016 4,000,000 3,636,872


Payments to Townships for Reticulated Towns (City Wide)

9.710006.1.016 3,500,000 3,393,197


Electricity for All 9.710178.2.005 142,664,750 141,611,002


Electricity for All 9.710178.2.006 40,000,000 39,698,082


Communication Upgrade: Optical Fibre net

9.710325.1.005 8,000,000 7,573,611



9.710325.1.016 5,000,000 4,891,007


Strengthening 11kV Cable network

9.710480.1.015 10,000,000 9,813,363


Strengthening 11kV Overhead Network

9.710481.1.015 10,000,000 9,317,308

Utility Services Energy & Electricity

Substations 9.710484.1.005 4,000,000 3,993,683


Tshwane Public Lighting Programme

9.710556.2.005 45,000,000 43,774,390

Utility Services -

Tshwane Public Lighting Program

9.710556.2.016 15,000,000 14,273,752

81

69

Department Project Name Project Number Adjusted Budget (R)


Energy & Electricity


Pre-paid Electricity Meters

9.711862.1.005 17,000,000 16,994,148



9.711862.1.015 36,995,429 11,898,813


Replacement of Obsolete and non-functional Equipment

9.712006.1.016 4,000,000 3,518,754


New Bulk Infrastructure (USDG)

9.712279.1.005 26,000,000 26,000,000


New Bulk Electricity Infrastructure

9.712279.1.015 133,100,000 131,826,599


New Connections 9.712483.1.016 22,000,000 21,099,655


Replacement of Obsolete Protection and Testing Instruments

9.712861.1.016 1,500,000 1,085,294


Substation Peripheral Equipment Programme

9.712906.1.016 6,000,000 6,000,000


AMVI Infrastructure (Smart Meter Project)

9.713020.1.001 950,000,000 0

B Utility Services: Water & Sanitation The department achieved 14 projects out of 47 and 1 project was not reported, i.e. the Water

Conservation and Demand Management (Installation of water meter)

Table 34: Water & Sanitation Q4 Performance of Projects Achieved Targets

Department Project

Name

Project

Number

Annual Delivery

Target

YTD Progress

against Annual

Target

Adjusted

Budget

YTD

Expendit

ure 2016-

17

Utility

Services:

Township

Water

Services

Developers:

9.710022.1

.001.

T.2.02S

Developers enter

into service

agreements with the

CoT for each new

Payment to

Developers R5

000 000.

5,000,000 5,000,000

82

70

Department Project

Name

Project

Number

Annual Delivery

Target

YTD Progress

against Annual

Target

Adjusted

Budget

YTD

Expendit

ure 2016-

17

Water &

Sanitation

Tshwane

Contribution

s (City Wide)

township. In some

cases, the CoT

requires upsizing or

new services that

will require

repayment for

additional capacity

created in this way.

Utility

Services:

Water &

Sanitation

Lengthening

of Network

& Supply

Pipelines

9.710023.1

.016.W.7.G

AR

400m water pipeline

(upgrade)

A total 1336m of

water pipes have

been installed till

28 June 2017

1,000,000 999,966

Utility

Services:

Water &

Sanitation

Replacemen

t of Worn

Out Network

Pipes

9.710026.1

.015.S

5965m Water

reticulation pipes

Upgraded

A total 7679m of

water pipes have

been installed till

28 June 2017

15,000,00

0

14,943,41

1

Utility

Services:

Water &

Sanitation

Replacemen

t of Worn

Out Network

Pipes

9.710026.1

.016

5965m Water

reticulation pipes

Upgraded

A total 7679m of

water pipes have

been installed till

28 June 2017

1,000,000 999,797

Utility

Services:

Water &

Sanitation

Mabopane

water

reticulation

and bulk

pipeline

9.710878.2

.005

Completion of

Mabopane water

reticulation and bulk

pipeline

Project completed 6,970,107 0

Utility

Services:

Water &

Sanitation

(710878EK)

Ekangala

Block A

sewer

reticulation

and toilets

9.710878.2

.005.

Installation of 33

000m of pipe and

912 toilets

structures.

The contractor

completed the

defects

corrections for all

the sections.

6,128,308 0

Utility

Services:

Water &

Sanitation

Garsfontein

pipe

reinforceme

nt

9.711335.1

. 015.E. N

Completion of all tie-

ins and completion

of project.

Project has been

completed

3,092,674 0

Utility

Services:

Water &

Sanitation

Information

Managemen

t system

(upgrading

of Ibis

software)

(Water

demand

managemen

t) (City wide)

9.711542.1

.

68% The

Development a new

Maintenance

Management

System

Development

practically

completed

9,000,000 8,999,998

83

71

Department Project

Name

Project

Number

Annual Delivery

Target

YTD Progress

against Annual

Target

Adjusted

Budget

YTD

Expendit

ure 2016-

17

Utility

Services:

Water &

Sanitation

Installation

of telemetry,

bulk meters

and control

equipment

at reservoirs

(City Wide)

9.712534.1

.015

Installation of data

loggers for flow

control valve

chambers

Completed 5,000,000 0

Utility

Services:

Water &

Sanitation

Soshanguve

South Ext 1

(Plot 67) -

398 housing

units - water

provision

9.712970.1

.005

Installation of sewer

pipeline, manholes

and house

connections

The pipe

installation is 83%

complete. A total

of 292 water

connection were

completed.

2,303,011 0

Utility

Services:

Water &

Sanitation

Soshanguve

South Ext 1

(Plot 67) -

398 housing

units - sewer

provision

9.712970.1

.005


pipeline, manholes

and house

connections

Blasting is 100%

completed, 70

manholes

completed,

internal 250Ø bulk

sewer pipe

installation is at

96%, 160Ø

Network is at 80%

and external bulk

sewer upgrades is

at 0%. Total

physical progress

is at 43%

2,543,585 0

Utility

Services:

Water &

Sanitation

Atteridgevill

e Ext 19 -

Water

network

9.712970.1

.005


pipeline, manholes

& house

connections and

testing of pipeline

Testing of

pipeline(110Ø)

=733.8m, laying

of 20mm HDPE

pipes to connect

to the Toilet and

Yard Taps from

the water meters=

1272.5m

15,000,00

0

0

Utility

Services:

Water &

Sanitation

Atteridgevill

e Ext 19 -

Sewerage

network

9.712970.1

.005


pipeline, manholes

and house

connections

Air Testing of

pipeline=3135.09

m, CCTV

Inspection=5630.

3m

26,000,00

0

0

Utility

Services:

Water &

Sanitation

Nellmapius

Ext 24 -

Outfall

sewer

pipeline for

2 640

stands

9.712970.1

.005

Bulk water supply

pipeline

Completed all the

outstanding toilet

top structures.

1,400,000 0

84

72

Department Project

Name

Project

Number

Annual Delivery

Target

YTD Progress

against Annual

Target

Adjusted

Budget

YTD

Expendit

ure 2016-

17

Utility

Services:

Water &

Sanitation

Mamelodi

Ext 11 -

Upgrading

of bulk water

supply

pipeline

9.712970.1

.005

Complete all the

entire scope of

works.

completed the

entire scope of

works.

1,767,717 0

A total of 33 projects did not achieve planned milestones. The department did not report on

future plans for project that did not perform. The projects are sub-projects within different

programmes hence the budget and expenditure is not stated.

Table 35: Shared Services Q4 Performance of Projects Not Achieved

Department Project Name Project Number Reasons Annual Target not

achieved

Utility Services:

Water &

Sanitation

(710411A1) Sunderland

Ridges new 30ML BNR

9.710411.1.015. The project has been put on

hold as there is no budget

allocated in 2017/18 FY

Utility Services:

Water &

Sanitation

(710411F) Baviaanspoort

waste water treatment

works

9.710411.1.016. The approved budget for the

project for the 3 years on the

MTREF is only about R53

million, while the estimated

project budget is about R530

million. Other options should

be explored as the project has

no sufficient budget.

Utility Services:

Water &

Sanitation

(710411I) Temba/Babelegi

WWTW

Upgrade/Extension

9.710411.1.016. Delays due to the insurance

claim for the theft of cables on

site.

Utility Services:

Water &

Sanitation

(710878E) Soshanguve

DD bulk water pipeline

(emergency pipeline to

Stinkwater)

9.710878.2.005 Slow progress by contractor

Utility Services:

Water &

Sanitation

(710878RM) Ramotse-

Marokolong waterborne

sanitation

9.710878.2.005 The design process cannot

commence due to the delay by

the unavailability of approved

General Layout Plans.

Utility Services:

Water &

Sanitation

(710878T) Temba Water

Purification Plant

Extension

9.710878.2.005 The contractor is behind

schedule

85

73


achieved

Utility Services:

Water &

Sanitation

(710878Z) Garankuwa

water bulk pipeline

9.710878.2.005 Cash-flow and community

challenges

Utility Services:

Water &

Sanitation

(710878T) Temba Water

Purification Plant

Extension

9.710878.2.015 The contractor is behind

schedule

Utility Services:

Water &

Sanitation

Upgrade of the Moreleta

Bulk Water Pipeline

9.711335.1.015 The project has been

postponed to the 2017/18

financial year due to the issues

that were encountered with

panel appointments.

Utility Services:

Water &

Sanitation

(711335P) Heights Iscor

Feeder

9.711335.1.015.3.P.C5A Delays in the final approval of

designs by department

Utility Services:

Water &

Sanitation

(711335D) Bulk Water

Pipeline Wonderboom

9.711335.1. 015.N Delays experienced in

manufacturing and coating of

fittings.

Utility Services:

Water &

Sanitation

(712124) Establishment of

Water Distribution Depots

9.712124.1 The appointment of the

contractor was delayed due to

cancellation of the consultant

appointment

Utility Services:

Water &

Sanitation

(712534J) New Klipgat

Reservoir

9.712534.1.001.S.J.C2A Disruptions from local sub-

contractors delayed progress

on site

Utility Services:

Water &

Sanitation

(712534D) Mooikloof

Reservoir

9.712534.1.015.E.D.C4A Project on hold due to

insufficient budget in the next

financial year.

Utility Services:

Water &

Sanitation

(712534U) Grootfontein

Water Reservoir, tower

and pipework

9.712534.1.015.E.U.C4A The tender process is on hold

due to the unavailability of

funding for the project in the

next coming 3 years.

Utility Services:

Water &

Sanitation

(712534A) Annlin

Reservoir Extension

9.712534.1.015.N.A.O4B Slow progress by contractor

Utility Services:

Water &

Sanitation

(712534W) 9.712534.1.015. N.W.17N Delays were encountered due

to the lengthy process of

appointing the contractor

through regulation 32

86

74


achieved

Utility Services:

Water &

Sanitation

(712534C) Doornkloof

Reservoir

9.712534.1.015.S.C.C3A 'Revision of tender document

and role mapping/ e-

procurement delayed the

progress.

Utility Services:

Water &

Sanitation

Midas - 580 housing units -

water provision

9.712970.1.005 Project allocation could not be

done due National Treasury

directive and an instruction has

been given to the consultant to

prepare a tender document for

a normal tender process.

Utility Services:

Water &

Sanitation

Midas - 580 housing units -

sewer provision

9.712970.1.005 Project allocation could not be

done due National Treasury

directive and an instruction has

been given to the consultant to

prepare a tender document for


Utility Services:

Water &

Sanitation

Kudube Unit 8 - 1784

Housing Units - Water

Provision

9.712970.1.005 Late appointment of the

contractor caused the delay in

terms of establishing site and

commencing with work on site.

Utility Services:

Water &

Sanitation

Hammanskraal Ext 10 -

2767 Housing Units -

Water Provision

9.712970.1.005 There was a delay with regards

to the design route for the Bulk

Sewer

Utility Services:

Water &

Sanitation

Hammanskraal Ext 10 -


Sewer Provision

9.712970.1.005 There was a delay with regards

to the design route for the Bulk

Sewer

Utility Services:

Water &

Sanitation

Hammanskraal Ext 2

Stand 3505 - 61 Housing

Units - Water Provision

9.712970.1.005 This project cannot proceed

due to a directive from National

Treasury to appoint through

open tender and no provision

is made for budget in the

2017/18 financial year.

Utility Services:

Water &

Sanitation

Hammanskraal Ext 2

Stand 3505 - 61 Housing

Units - Sewer Provision







Utility Services:

Water &

Sanitation

Atteridgeville Ext 16 - Bulk

water plus outfall sewer to

service future stands







87

75


achieved

Utility Services:

Water &

Sanitation

Kameeldrift 174 & 175 -

356 Housing Units - Sewer

Provision

9.712970.1.005 The consultant has delayed in

finalizing the overall service

design for the project.

Utility Services:

Water &

Sanitation

Kameeldrift 174 & 175 -


Water Provision

9.712970.1.005 The consultant has delayed in

finalizing the overall service

design for the project

Utility Services:

Water &

Sanitation

Mahube Valley Ext 15 -

Sewer provision for 2 353

stands

9.712970.1.005 The layout has not been

approved and housing still

needs to relocate the people.

Utility Services:

Water &

Sanitation

Mahube Valley Ext 15 -

Water provision for 2 353

stands

9.712970.1.005 The layout has not been

approved and housing still

needs to relocate the people.

Utility Services:

Water &

Sanitation

Mamelodi Ext 11 (Mahube

Valley) - Sewerage

network line for 1 859

stands

9.712970.1.005 The appointment through

panels was stopped by

National Treasury which

affected the appointment of the

contractor.

Utility Services:

Water &

Sanitation

Mamelodi Ext 11 (Mahube

Valley) - Water network

link for 1 859 stands

9.712970.1.005 The appointment through

panels was stopped by

National Treasury which

affected the appointment of the

contractor.

9 CONCLUSION AND RECOMMENDATIONS

The report presents un-audited performance results as reported by the departments and entities for quarter

4. The report is recommended to be submitted to Council, and to be audited by Internal Audit.

88

76

APPENDIX A: CAPITAL PROJECTS FUNDS TRANSFERS DUE TO ADUSTMENTS

Detailed Budget Funds Transfer: Funds -In

Table 36: Funds in

N

o

Department Project Name WBS Level 3 Original

Budget

2016/17

Funds In Adjusted

Budget

2016/17

1 Community &

Social

Development

Services:

Social

Development

Social

Development

centre in

Mabopane

9.712955.1.01

7

7,000,000

6,000,000

13,000,000

2 Community &

Social

Development

Services:

Social

Development

Social

Development

centre in

Hammanskraal

9.712948.1.01

7

7,000,000

7,000,000

14,000,000

3 Community &

Social

Development

Services:

Social

Development

Social

Development

centre in

Winterveldt

9.712954.1.01

7

7,000,000

7,000,000

14,000,000

4 Community &

Social

Development

Services:

Sports and

Recreation

Capital Funded

from Operating

9.712773.1.01

3

5,283,600

1,694,629

6,978,229

5 Community &

Social

Development

Services:

Sports and

Recreation

Solomon

Mahlangu

Freedom

Square -

Cultural Centre

9.711439.1.01

5

-

1,813,637

1,813,637

6 Community &

Social

Development

Services:

Sports and

Recreation

Cullinan Library

Park

9.712936.1.01

5

-

3,400,000

3,400,000

89

77

N

o


Budget

2016/17

Funds In Adjusted

Budget

2016/17

7 Community &

Social

Development

Services:

Sports and

Recreation

Upgrading of

Zithobeni Sport

Stadium

9.712883.1.01

5

-

3,700,000

3,700,000

8 Economic

Development

& Spatial

Planning: City

Planning &

Development

Inner City

Regeneration

9.713023.1.02

1

-

36,254,200

36,254,200

9 Environment &

Agriculture

Management

Upgrade

infrastructure

Nature

Reserves

9.713024.1.01

5

-

650,000

650,000

10 Group

Financial

Services

Corporate

Capital

Movables

9.712989.1.00

7

5,000,000

13,500,000

18,500,000

11 Health New clinic in

Doornpoort

9.710075.1.01

5

-

661,714

661,714

12 Housing &

Human

Settlement

Roads and

Stormwater -

Low Cost

Housing -

Project Linked

Housing

9.710865.2.00

5

193,739,20

7

3,388,000

197,127,207

13 Housing &

Human

Settlement

Project Linked

Housing -

Water Provision

9.710863.2.00

5

128,909,83

1

4,000,000

132,909,831

14 Housing &

Human

Settlement

Roads and

Stormwater -

Low Cost

Housing -

Project Linked

Housing

9.710865.2.01

5

-

32,000,000

32,000,000

15 Regional

Operations

and

Coordination

Jojo Tanks - Re

Aga Tshwane

9.713021.1.00

5

-

3,000,000

3,000,000

90

78

N

o


Budget

2016/17

Funds In Adjusted

Budget

2016/17

16 Roads &

Transport

Flooding

Backlogs:

Mamelodi,

Eersterust &

Pta Eastern

Area

9.712223.1.00

5

-

55,000

55,000

17 Roads &

Transport

Contributions:

Services for

Township

Development

9.710115.1.01

5

6,437,061

530,560

6,967,621

18 Roads &

Transport

Separation

Airside/Landsid

e movements

9.711953.2.01

5

5,000,000

2,000,000

7,000,000

19 Roads &

Transport

Improvement of

dirt road leading

to Clover hill

club

9.712947.1.01

5

-

2,500,000

2,500,000

20 Roads &

Transport

Rehabilitation of

Stormwater

Systems &

Sidewalks

9.710220.2.01

5

-

5,525,100

5,525,100

21 Roads &

Transport

Spoorview - Re

Aga Tshwane

9.713022.1.00

5

-

20,000,000

20,000,000

22 Roads &

Transport

Internal Roads:

Northern Areas

9.711863.2.01

5

12,915,683

30,000,000

42,915,683

23 Shared

Services:

Group

Information &

Communicatio

n Technology

IT infrastructure

-Tshwane

House

9.713005.1.01

5

29,000,000

56,713,288

85,713,288

24 Utility

Services:

Energy &

Electricity

Communication

Upgrade:

Optical Fibre

Net

9.710325.1.00

5

-

8,000,000

8,000,000

25 Utility

Services:

Energy &

Electricity

Pre-paid

Electricity

Meters

9.711862.1.01

5

-

11,900,000

11,900,000

91

79

N

o


Budget

2016/17

Funds In Adjusted

Budget

2016/17

26 Utility

Services:

Energy &

Electricity

Pre-paid

Electricity

Meters

9.711862.1.00

5

-

17,000,000

17,000,000

27 Utility

Services:

Water &

Sanitation

Establishment

of Water

Distribution

Depots

9.712124.1.01

5

2,000,000

2,000,000

4,000,000

28 Utility

Services:

Water &

Sanitation

Reduction

Water Losses:

Water Networks

9.711542.1.01

6

5,000,000

4,000,000

9,000,000

29 Utility

Services:

Water &

Sanitation

Refurbishing of

Water Networks

and Backlog

Eradication

9.710878.2.01

6

-

6,182,300

6,182,300

30 Utility

Services:

Water &

Sanitation

Water

Conservation

and Demand

Management

(Installation of

water meters

Steve

9.712896.1.00

5

-

10,000,000

10,000,000

31 Utility

Services:

Water &

Sanitation

Replacement

and Upgrading:

Redundant Bulk

Pipeline

Infrastructure

9.711335.1.01

5

5,500,000

12,350,000

17,850,000

32 Utility

Services:

Water &

Sanitation

Refurbishing of

Water Networks

and Backlog

Eradication

9.710878.2.01

5

10,000,000

35,100,000

45,100,000

33 Utility

Services:

Water &

Sanitation

Refurbishing of

Water Networks

and Backlog

Eradication

9.710878.2.00

5

213,000,00

0

56,000,000

269,000,000

Total

642,785,38

2

403,918,42

8

1,046,703,81

0

Detailed Budget Funds Transfer: Fund -Out

92

80

Table 37: Funds out

N

o Department Project Name

WBS Level

3

Original

Budget

2016/17

Funds Out

Adjusted

Budget

2016/17

1

Utility

Services:

Water &

Sanitation

RE - AGA - Tshwane 9.712970.1.

005

191,450,00

0

89,000,000

102,450,00

0

2

Roads &

Transport

Flooding Backlogs:

Sosh & Winterveldt

Area

9.712220.1.

015

114,652,61

5

38,555,660

76,096,955

3

Utility

Services:

Water &

Sanitation

Replacement,

Upgrade, Construct

Wwtw Facilities

9.710411.1.

015

33,000,000

32,350,000

650,000

4

Community

& Social

Developmen

t Services:

Sports and

Recreation

Redevelopment of

Caledonian

9.712915.1.

015

50,000,000

29,000,000

21,000,000

5 Roads &

Transport

Mabopane Station

Modal Interchange

9.710657.2.

005

54,097,344

25,000,000

29,097,344

6

Shared

Services:

Group

Information

&

Communicat

ion

Technology

Upgrade of IT

Networks

9.710200.1.

015

30,000,000

20,000,000

10,000,000

7

Shared

Services:

Group

Information

&

Communicat

ion

Technology

Disaster Recovery

System Storage

9.712950.1.

015

20,000,000

20,000,000

-

8

Utility

Services:

Water &

Sanitation

Reservoir Extensions 9.712534.1.

015

66,000,000

17,100,000

48,900,000

93

81

N


WBS Level

3

Original

Budget

2016/17

Funds Out

Adjusted

Budget

2016/17

9 Roads &

Transport

Upgrading of

Garsfontein road

9.712956.1.

018

12,071,107

12,071,107

-

1

0

Shared

Services:

Group

Information

&

Communicat

ion

Technology

Credit Control Solution 9.712969.1.

015

20,000,000

11,713,288

8,286,712

1

1

Utility

Services:

Water &

Sanitation

Replacement,

Upgrade, Construct

Wwtw Facilities

9.710411.1.

016

22,000,000

10,182,300

11,817,700

1

2

Community

& Social

Developmen

t Services:

Sports and

Recreation

Greening Sportfields 9.712941.1.

015

20,000,000

8,913,637

11,086,363

1

3

Housing &

Human

Settlement

Sewerage - Low Cost

Housing

9.710864.2.

005

153,437,50

0

7,000,000

146,437,50

0

1

4

Utility

Services:

Energy &

Electricity

New Bulk Electricity

Infrastructure

9.712279.1.

015

140,000,00

0

6,900,000

133,100,00

0

1

5

Community

& Social

Developmen

t Services:

Sports and

Recreation

Upgrade Refilwe

Stadium

9.712916.1.

015

10,000,000

5,000,000

5,000,000

1

6

Shared

Services:

Group

Information

&

Communicat

ion

Technology

Implementation of

Storage Area Network

9.710344.1.

015

15,000,000

5,000,000

10,000,000

94

82

N


WBS Level

3

Original

Budget

2016/17

Funds Out

Adjusted

Budget

2016/17

1

7 Group

Property

Replacement/Moderni

zation of all the Lifts

within various Council

Buildings

9.712743.1.

015

5,000,000

3,000,000

2,000,000

1

8 Roads &

Transport

Main terminal Building,

carousel and other

mechanical baggage

handling equipment

maintenance

9.712891.1.

015

2,000,000

2,000,000

-

1

9 Health

Replacement of

Rayton Clinic

9.712684.1.

015

7,700,000

661,714

7,038,286

2

0

Environment

&

Agriculture

Managemen

t

Development and

Upgrading of Existing

Cemeteries

9.712498.1.

015

650,000

650,000

-

2

1

Housing &

Human

Settlement

Project Linked

Housing - Acquisition

of Land

9.710868.2.

005

31,358,713

388,000

30,970,713

2

2 Roads &

Transport

Flooding Backlogs:

Sosh & Winterveldt

Area

9.712220.1.

005

220,488,28

4

55,000

220,433,28

4

Total

1,218,905,5

63

344,540,70

6

874,364,85

7

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SANDSPRUIT WORKS ASSOCIATION

FOURTH QUARTER PERFORMANCE REPORT

APRIL 2017 – JUNE 2017 FOR

FINANCIAL YEAR 2016 / 17

SIGN OFF

CHIEF EXECUTIVE OFFICER

___________________________________

DOCUMENT DATE

ANNEXURE B 96

2 | P a g e

Table of Contents

1. EXECUTIVE SUMMARY........................................................................................................................................................................... 3

2. PERFORMANCE AGAINST THE ENTITY BUSINESS PLAN ........................................................................................................... 5

2.1 SUMMARY OF PROGRESS AGAINST ENTITY BUSINESS PLAN TARGETS ............................................................................................... 5

3. PERFORMANCE ON OTHER STRATEGIC MATTERS ................................................................................................................... 14

3.1 REDUCING NON-REVENUE WATER FROM 20% TO 19.5% WITH A 0.5% REDUCTION IN TOTAL WATER LOSSES .............................. 14

3.2 PROVIDING FREE BASIC SERVICES TO INDIGENT HOUSEHOLDS (WATER) ............................................ Error! Bookmark not defined.

3.3 STRATEGIC PROJECTS (OPERATIONS) ................................................................................................................................................ 14

3.4 WASTE WATER TREATMENT PLANTS................................................................................................................................................. 14

4. OVERALL HIGHLIGHTS AND CHALLENGES .................................................................................................................................. 15

4.1 HIGHLIGHTS ....................................................................................................................................................................................... 15

Operations and Maintenance ..................................................................................................................................................................... 15

ICT Department ........................................................................................................................................................................................... 15

Marketing and Communication ..................................................................................................................... Error! Bookmark not defined.

4.2 CHALLENGES ...................................................................................................................................................................................... 17

5. DEPENDENCIES AND CROSS CUTTING ISSUES .......................................................................................................................... 19

6. OPERATION CLEAN AUDIT ................................................................................................................................................................. 20

7. GOVERNANCE ........................................................................................................................................................................................ 21

7.1 COMPOSITION OF SWA BOARD MEMBERS .......................................................................................... Error! Bookmark not defined.

7.2 BOARD COMMITTEES AND NUMBER OF MEETINGS ............................................................................ Error! Bookmark not defined.

8. HUMAN RESOURCE MANAGEMENT ................................................................................................................................................ 26

8.1 DIRECTORS REMUNERATION AND SENIOR MANAGERS (01 JULY-31 AUGUST 2016) ........................................................................ 26

8.2 HUMAN RESOURCES MANAGEMENT ADMINISTRATION .................................................................................................................. 26

8.3 EMPLOYEE RELATIONS ...................................................................................................................................................................... 27

8.4 PROGRESS ON ORGANIZATIONAL DESIGN ........................................................................................... Error! Bookmark not defined.

8.5 TRAINING AND DEVELOPMENT ............................................................................................................ Error! Bookmark not defined.

9. RISK MANAGEMENT AND INTERNAL CONTROLS ....................................................................................................................... 29

10. SUPPLY CHAIN MANAGEMENT .................................................................................................................................................... 30

10.1 DEVIATION REPORT JULY 2016 - SEPTEMBER 2016 SCM: REGULATION 36(2) OF THE SCM REGULATIONS ...................................... 33

10.2 SCM COMPLIANCE IN TERMS OF SCM REGULATIONS (SCMR) 12 ..................................................................................................... 34

11. CONCLUSION AND RECOMMENDATIONS ................................................................................................................................. 35

ANNEXURE A: FINANCIAL PERFORMANCE ............................................................................................................................................ 37

STATEMENT OF FINANCIAL POSITION AS AT ................................................................................................................................................... 37

REVENUE BY SOURCE AT DATE ........................................................................................................................................................................ 37

CASHFLOW STATEMENT AT DATE ....................................................................................................................... Error! Bookmark not defined.

ANNEXURE B: MUNICIPAL ENTITIES BUSINESS PLAN 2016/17 ........................................................................................................ 39

SANDSPRUIT WORKS ASSOCIATION ................................................................................................................................................................. 39

2016/17 APPROVED BUSINESS PLAN ............................................................................................................................................................... 39

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1. EXECUTIVE SUMMARY

SWA’s performance for the period under review is set against the adjusted 2016/17 business plan and

the implementation of the approved Debt Collection Strategy as well as the background of the 27th

October 2016 Council resolution of disestablishing SWA. In the period under review SWA has 9

indicators out of 12 as the other 3 were no longer relevant to SWA business as the result of

disestablishment. The indicators that have not been achieved are 2 and 7 have been achieved.

Debt collection strategy and credit control.

The Debt Collection Strategy has not yet yielded the required results because revenue collection is still

averaging between R7.5 million and R9 million monthly and the target of 75% this quarter has not been

achieved. A total of 3802 accounts have been handed over to over 19 of the 28 collecting agents that

have been appointed by the City. The accounts handed over exclude government accounts, indigent’s

accounts and all accounts with queries

Credit control

The service provider is forever intimidated by the community when doing credit control action hence on

improvement on collection rate. A total of 274 business accounts had their service supply disconnected

while 1450 households had their services restricted for none payment.

Meter reading

Meter Reading is done by the CoT permanent meter readers as from January 2017 because the contract

of the service provider was not renewed again. The meter readers have experienced some challenges:

Meters that are buried and were not reported previously by the service provider.

New meter that are on the field and not on the reading books.

Meters that are inside the premises.

Intimidation in some areas.

Indigent Register.

Indigents that are not properly registered are being investigated by the CoT forensic team to determine

the legitimacy of being on the register, and those found to be not eligible are being deregistered.

Accounts where businesses are conducted e.g. Taverns, crèche’s, and mini brick manufacturing

factories.

Deceased account holders still on the register.

Working account holders earning more than the indigent income threshold.

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4 | P a g e

Account numbers where the name and identity number differs.

Accounts with indigent status approved more than seven years ago.

Accounts where change of ownership had occurred.

The major challenge still remains with those indigents who are consuming in excess of the allowed 12 kl

of water per month. The target of installing 446 of the water restrictors to those indigents who are

consuming in excess of the 12kl of water per month has been achieved.

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2. PERFORMANCE AGAINST THE ENTITY BUSINESS PLAN

2.1 SUMMARY OF PROGRESS AGAINST ENTITY BUSINESS PLAN TARGETS

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Strategic Objective Department

Division

Key Performance

Area

2016/17

Target

Baseline Budget FY 2015/16 R`000

Quarter 1 Quarter 2 Quarter 3 Quarter 4

April May June

Promote Sustainable Service

Infrastructure and Human

Settlement Management

Operations

Achieve an annual

target of 19.5% Non-

Revenue Water

19.5% 20%

Target 19.5%

Actual: 76.13%

Target:

19.5%

Actual:

20.95%

Target: 20%

Actual: 35.86%

Target: 20%

40 000

Target: 20%

Actual:

25.36%

Target: 20%

Actual:

31.04%

Target: 20% Estimate 46.3%

Actual 34.23%

Not Achieved

Promote Shared Economic

Growth and Job Creation

Finance Outsourcing 40 % job

opportunities to

SMME’s (30%)and

Co-operatives (10%)

annually

40% Target 40%

Target: 10%

Actual:18%

Target: 10%

Actual:

67.74%

Target: 10%

Actual:

21.13%%

Target: 10%

3 000 Actual :

100%

18.40% 100%

Total : 72.8% Achieved

Ensure Sustainable, Safer

City and Integrated Social

Development

Operations Reduce the number

of registered

indigents who

consume in excess of

the allocated basic

water consumption

(12kl)

The WMD’s were

replaced by water

restrictions

45% New

Indicator

Target 45%

Actual:

Target: 45%

Actual:

22.39%

Target: 445

Actual: 0

Target: 445

5 000

Actual:

1369

Actual:

0

Actual:

0

Total : 1369

Achieved

Promote Governance and Finance Financial Compliance 100% 100% Target: 19.5% Target: 100% 760

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Active Citizenry in terms s87 (11) of

the MFMA annually

Target: 100%

Actual:100%

Target: 100%

Actual: 100%

Actual: 20.95% Actual: 100% Target:

100%

Target:

100%

Actual: 100%

Achieved

Promote Governance and

Active Citizenry

Finance SCM Compliance in

terms of Regulation

12 and 36 of the

SCM regulations 100% 100%

Target: 100%

Actual: 100%

Target: 100%

Actual: 100%

Target: 100%

Actual: 100%

Target: 100%

760

Actual 100% Actual 100% Actual 100%

Total : 100%

Achieved


Active Citizenry

Risk

100% of Mitigation

Strategies monitored

against Approved

Risk Register

100% New KPI Target: 100%

Actual: 100%

Target: 100%

Actual: 100%

Target: 100%

Actual: 100%

Target: 100%

800 Actual 100% Actual 100% Actual 100%

Actual: 100% Achieved


Active Citizenry

Marketing

Branding

100% New KPI Consult

Stakeholders

Consult

Stakeholders

Cancelled

Cancelled Cancelled Cancelled

0


Active Citizenry

Marketing

Stakeholder

meetings per ward to

discuss community

concerns (currently

MAWIGA have 10

wards)

40 31

Target: 10

Actual: 10

Target: 10

Actual: 10

Target: 10

Actual: 18

Target: 10

600

Actual: 5 Actual: 7 Actual: 4

Total: 16

Achieved

Improve Financial

Sustainability

Finance Achieve Revenue

collections of 75%

Annually

80% 75%

Target: 80%

Actual:69.37%

Target: 80%

Actual:

51.04%

Target: 80%

Actual: 54%

Target: 65%

222 728

Actual:

39.73%

Actual: 67.97%

Actual:

Total:

Not Achieved

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Continued organizational

Development,

Transformation and

Innovation

Human

Resource

Implement the

Reviewed Approved

Organizational

structure

100% New KPI

Target: 25%

Actual: 0

Target: 25%

Actual: 0

Cancelled Cancelled Cancelled Cancelled

0


Active Citizenry

Company

Secretary

Compliance with

Section 33, Section

16 of Companies Act

71 of 2008 and Board

governance

documents.

1 New KPI

Target; 100%

Actual: 100%

Target: 100%

Actual: 100%

Only done in

the 1st quarter

Only done in

the 1st quarter

Only done in

the 1st

quarter

Only done in

the 1st

quarter

700

Promote

Governance and

Active Citizenry

IT Compliance in

terms COBIT,

KINGIII & ITIL.

100% New KPI

Target: 100%

Actual:100%

Target:

100% Actual:

65.16%

Target: 50%

Actual: 98.7%

Target: 50%

700

Actual:

100%

Actual:

100%

Actual:

100%

Total: 100%

Achieved

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STATEMENT OF FINANCIAL PERFORMANCE

The Financial Performance Report for Sandspruit Works Association for the period ended 30 June 2017.

Works Association - Table F2 Monthly Budget Statement - Financial Performance (revenue and expenditure) – M08 May 2017

Description

Monthly actual

YearTD actual

YearTD budget

YTD variance

YTD variance

Full Year Forecast

R thousands

%

Revenue By Source

Service charges - water revenue 7 417 123,880 179,632 (55,752) -31% 179,632

Service charges - sanitation revenue 2 814 47,982 54,820 (6,838) -12.5% 54,820

Interest earned - external investments 72 375 1,000 (625) -62.4% 1,000

Interest earned - outstanding debtors 5 191 63,180 80,870 12,310 24.28% 50,870

Transfers recognised – operational 7 052 271,547 172,940 98,607 57.% 172,940

Other revenue 19 263 28,622 (28,360) -99.1% 28,623

Total Revenue (excluding capital transfers and contributions) 22,564 507,227 487,884 19,343 8.2% 487,884

Expenditure By Type

Employee related costs 7,942 97,256 90,025 7,232 8.% 90,025

Remuneration of Directors 155 1,019 1,080 (61) -5.7% 1,080

Debt impairment 9,269 142,194 56,762 85,432 150.5% 56,762

Collection Cost 124 976 2,836 (2,154) -68.8% –

Depreciation & asset impairment 154 1,888 3130 1,888 #DIV/0! 3,130

Finance charges – – – – –

Bulk purchases 21,838 225,367 208,873 17,943 8.4% 207,873

Other materials 251 2,980 10,980 (8,030) -73.1% 10,980

Contracted services 2,628 21,651 46,612 (24,961) -53.6% 46,612

Transfers and grants – – – – –

Other expenditure 1,430 18,820 71,422 (56,602) -73.6% 71,422

Total Expenditure 43,790 512,121 487,884 24,237 5.6% 487,884

Surplus/(Deficit) (21,226) (4,894) 382 ( 4,483) 4178.0% –

Surplus/(Deficit) before taxation (21,226) (4,894) 382 (4,893) 4178.0% –

Surplus/(Deficit) for the year (21,226) (4,894) 382 (4,893) –

REVENUE BY SOURCE:

The above table indicates the total operating revenue of R 507 million compared to budget amount of R 488 million. The total revenue surplus for the period ending 30 June 2017 is R 19 million. This surplus is attributed to revenue from service charges and other revenue that is under budget by R55 and R 28 million respectively, and debtors’ interest and transfers recognized operational

grant that is over budget by R 12 and R 99 million respectively.

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EXPENDITURE BY TYPE:

The total expenditure for the period is R 512 million compared to a budget of R 488 million, resulting in over expenditure of R 240M which is attributed mainly to the following: Debt Impairment – R 85 million above budget due to declining collection levels. Underspending of R 89.5M on contracted services, other materials and related expenses as

a result of cash constraints resulting from poor collection levels. Bulk water purchases are R 18 million rand over budget. Employee costs which exceed the budget by R7m and R2m underspending on collection

costs. The entity still continues to be heavily dependent on the Operational Grant Transfers from the parent municipality. The entity posted a deficit of R 4,8 million rand for period ended 30 June 2017.

STATEMENT OF FINANCIAL POSITION

Vote Description

2015/16 Current Year 2016/17

Audited Outcome

Original Budget

Adjusted Budget

YearTD actual

Full Year Forecast

R thousands

ASSETS

Current assets

Cash 12,510 17,786 18,710 7,399 18,710

Consumer debtors 15,875 13,456 13,456 51,406 13,456

Other debtors 19,963 55,000 55,000 577,371 55,000

Current portion of long-term receivables – – –

–

Inventory 3,478 3,826 3,826 3,424 3,826

Total current assets 51,827 90,068 90,992 639,601 90,992

Non current assets

Property, plant and equipment 22,116 15,494 15,494 4,725 15,494

Intangible – 5,000 5,000 40 5,000

Total non current assets 22,116 20,494 20,494 4,765 20,494

TOTAL ASSETS 73,943 110,562 111,486 644,366 111,486

LIABILITIES

Current liabilities

Consumer deposits 3,700 4,000 4,000 3,962 4,000

Trade and other payables 60,730 83,780 83,780 613,907 83,780

Provisions – 7,000 7,000 9,715 7,000

Total current liabilities 64,430 94,780 94,780 627,584 94,780

Non current liabilities

TOTAL LIABILITIES 64,430 94,780 94,780 627,584 94,780

NET ASSETS 9,513 15,782 16,706 16,782 16,706

COMMUNITY WEALTH/EQUITY

Accumulated Surplus/(Deficit) 9,513 15,782 16,706 3,349 16,706

TOTAL COMMUNITY WEALTH/EQUITY 9,513 15,782 16,706 3,349 16,706

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The statement of financial position was favorable as at 30 June 2017. The accumulated surplus was R 16.8 million. The total assets for SWA were R 644 million versus total liabilities of R 628 million. The total assets comprise of current assets of R 640 million and non-current assets of R 4.7 million. The total liabilities comprise only of current liabilities totaling R 628 million. The current assets exceed current liabilities by R 12.m. The current ratio of SWA is stable at 1.00:1.00, which means that SWA will be able to meet its current liabilities when they become due. The City of Tshwane still remains the major creditor for SWA with at least 97% of the total creditors owed to the City.

Sandspruit Works Association - Aged creditors - June 2017

Detail

Current Year 2016/17

0 - 30 Days

31 - 60 Days

61 - 90 Days

91 - 120 Days

121 - 150 Days

151 - 180 Days

181 Days - 1 Year

Over 1 Year

TotalOver 365 days

R thousands

Creditors Age Analysis By Customer Type

Bulk Electricity

Bulk Water 21,838 18,690 18,690 21,731 20,868 22,390 23,974 452,307 600,489

PAYE deductions

–

VAT (output less input)

–

Pensions / Retirement deductions

–

Loan repayments

–

Trade Creditors

Auditor General

–

Other

–

Total By Customer Type 21,838 18,690 18,690 21,731 20,868 22,390 23,974 452,307 600,489

DEBT COLLECTION AND CREDIT CONTROL

DEBT COLLECTION

COLLECTION AGENT Mastre file

# ACCT RAND VALUE

TS LEGAL SERVICES 200 R 10,588,884.38

MAHARAJ ATTORNEYS 200 R 7,944,254.06

KR INC 200 R 6,316,570.50

MBN INC 200 R 7,691,247.84

BASCOL 200 R 5,838,246.45

MOHALE INC 200 R 5,968,770.30

VELILE TINTO & ASSOCIATION 200 R 7,302,560.92

BBT GROUP 200 R 6,712,632.56

MEDACO REVENUE SOLUTION 200 R 6,270,109.15

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NOKO MAIMELA 200 R 6,124,649.22

KEKEREILI GROUP 200 R 6,255,154.73

CONFIRM DIRECT CALL CENTRE 200 R 5,879,604.93

MATLAWWENG MAGOLEGO 200 R 5,594,308.30

REVCO 200 R 6,519,197.75

NTLOEDIBE ATTORNEYS 200 R 4,936,413.46

TRIFECTA CAPITAL COLLECTION 200 R 6,033,097.79

MAFETSA ATTOURNEYS 201 R 4,526,309.04

MBD KOIKANYA JOINT 201 R 6,439,155.00

KVW LEGAL 200 R 5,852,584.34

TOTAL 3802 R 122,793,750.72

As at 30 June 2017 3802 accounts have been handed over to 19 of the 28 collection agents that are appointed by CoT. These accounts exclude government accounts and indigent accounts.

Credit Control

Number issued Value issued Collected

Disconnections 136

R 2,246,369.96

R 705,235.81

Restrictions 1,366 R14,617,949.28 R 105,222.29

Analysis as of 30 June 2017

Total

0 - 30 days

31 - 60 days

61 - 90 days

91 - 120 days

121 - 150 days

151 - 180 days

181 - over 1 year

Organs of state

15,769,222.60

1,242,920.97 444,785.61 783,395.54 447,355.73 615,021.86 994,738.57

11,241,004.32

Commercial

8,956,979.96

1,047,192.88 629,004.17 542,817.57 531,677.47 362,645.81 209,859.37

5,633,782.69

Households

842,278,292.34

15,701,385.19

16,611,502.86

16,169,317.42

14,876,563.73

14,740,175.30

13,935,886.15

750,243,461.69

Table 1: Summary of performance against the business plan

Total Nr of targets for the financial year

Number of targets for the quarter

Nr of targets not achieved for the quarter

Nr of targets achieved for the quarter

Nr of targets cancelled for the financial year

Nr of targets not achieved year to date

Nr of targets achieved year to date

12 9

Two KPA’s were cancelled due to Disestablishment process

2 7 2 2 8

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Table 2: Business plan targets not achieved

KPA Indicator nr Reason for

non-

achievement

Corrective

measures

implemented

to date

Planned corrective

measures to be

implemented

Responsible

official for

corrective

measure

Due date

Achieve an annual target of 20% Non-Revenue Water

1 Improvement on repairing some of the bulk meters has been done in this quarter but the improvement has not completely assisted in reduction of non-revenue as required.

50% of the bulk meters have been addressed.

All the outstanding bulk meters will be handed over to CoT bulk Meter department for auctioning.

Acting Director BWS

30 September 2017

Achieve Revenue collections of 75% Annually.

9 Measures implemented are inadequate to create a culture of a paying customer.

Continuous implementation of credit control policies together with the debt collection strategy.

Implementation of Debt collection strategy and monitoring thereof to be done.

Revenue Manager and CFO

30 September 2017

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3. PERFORMANCE ON OTHER STRATEGIC MATTERS

3.1 REDUCING NON-REVENUE WATER FROM 20% TO 19.5% WITH A 0.5% REDUCTION IN

TOTAL WATER LOSSES

June figures are still estimated but only waiting for final values from Revenue Department.

3.2 STRATEGIC PROJECTS (OPERATIONS)

The Ga-Rankuwa West Reservoir’s progress is on 99% and it has not been commissioned due

to the unsuccessful tie-in connection to Rand water supply, the commissioning is re-scheduled

for the 12th July 2017.

The Ga-Rankuwa East Reservoir’s progress is on 99% and only the tie-in is outstanding

between SWA chamber and Rand 2. The project will be commissioned once the tie-in is

completed.

The CoT has made 100% progress to date in the installation of a bulk supply pipeline from

55ML to Mabopane Reservoir, but has not been commissioned yet. The second phase of the

project has started and is at 10% to date.

3.3 STRATEGIC PROJECTS: WASTE WATER TREATMENT WORKS (WWTW)

Temba WWTW is under upgrade, being extended by an additional 20 ML/ day, which will make

the Treatment Works to have a total treatment capacity of 32.5 ML/day. This will improve the

quality of the treated effluent. The electrical contractor has completed installing electrical cable

from Main Works to Inlet Works.

The civil contractor is arranging the change over from the old raw sewage pipeline to the newly

installed pipeline within the next six (6) weeks. This will pave way for the commissioning of the

new Inlet Works.

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4. OVERALL HIGHLIGHTS AND CHALLENGES

4.1 HIGHLIGHTS

REVENUE DEPARTMENT

a) Progress to date:

5580 Final Demand notices amounting to R115 637 674.00 were issued in the period under

review.

ICT DEPARTMENT

The service reporting from an ITIL perspective assist the entity in providing information to both the IT and

the business in order for informed decisions to be made. During the months of April 2017 - June 2017, the

IT Department received a total of 156 incidents and all were resolved. Out of 156, 1 was a test in the

month of April, which implies that valid incidents were 155.

The City of Tshwane is in the process of assisting SWA with the Disaster Recovery platform.

The Data Migration project has commenced on 24 May 2017. Data scoping was scheduled from 29 May

2017 to 02 June 2017 and it has been completed. The appointed Service Provider is currently busy with

the data migration of employees and that of revenue separately.

MARKERTING AND COMMUNICATION

CUSTOMER RELATIONS

OUTREACH PROGRAMME(GAZEBO SERVICES)

In a way of bringing service to the door-step of MAWIGA customers, Gazebo Service were successfully

implemented from May 2017. All Wards in MAWIGA were visited, with the involvement of Ward Councilors

and community leaders, to address billing issues and any other water and sanitation related issues.

Departments such as Revenue, OPS, IT and Marketing dept. participated in the initiative, to ensure a

success. Reported queries such as, incorrect billing, estimations, late distribution of bills and no bills were

recorded. Meter related queries were also received and were logged for the attention of OPS dept. Where

urgent meter leakages are reported, they are addressed on the spot to reduce water losses.

Customers appreciated the initiative, as some of the community members are unable to visit SWA offices

during the week due to different commitments and reasons.

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The service have been ongoing from May until end of June 2017, taking place on Fridays and Saturdays

until all areas in respective Wards of MAWIGA are visited. Communities were informed on the initiative

through pamphlets, Councilors, community reps and through different Radio Stations.

SWA is also intending to meet and engage other unknown formed community based organizations on the

ground and address their concerns.

Customer Education SWA, Marketing and Communications has commenced with creating awareness and

education on Policies of the Municipality as implemented in MAWIGA. All Ward Councilors including

community leaders have been invited to attend the workshop. The initiative will assist in minimizing

intimidations and aggression on the ground by the very community members, as they will be informed on

all processes and procedures of policies such as Credit Control, Indigent and Exit Indigent Policies.

Garankuwa, Mabopane and Winterveldt community leaders have been workshopped by the end of June

2017.

Stakeholder Management

Fourteen (14) stakeholder meetings (4 Community meetings and 10 Stakeholder forums engagements)

were attended to address community concerns in most wards in MAWIGA. The following issues were

raised:

Inconsistent billing

Meter leakages and long outstanding sewerage blockages

Informal areas requesting meter installations

Some areas in MAWIGA demanding that outstanding debts be written off

Requesting that yearly rebates be implemented in MAWIGA

Request Education and Awareness on the City’s policies

SWA has started with the process of correcting inconsistent billing since March 2017, going forward. It

was anticipated that the exercise will be completed by the end of June 2017 but due to budgetary

constraints and complexity of some of the problems, that was not achieved. CoT will take over the

remainder of the exercise for correcting the billing by first relocating those water meters that are inside the

yards outside. Communities were encouraged to ensure that they report all inconsistencies for correction,

promptly.

The City has also assisted SWA with the provision of 300 meters to expedite the addressing of long

outstanding meter leakages. Sewerage blockages are referred to the Region 1 as soon as they are

reported.

Engagements with Ward based community Forums

SWA held stakeholder forum meetings to address community concerns, with the following ward based

organizations:

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• Zone 14 community reps

• Ward 12 Committee and Ward Councilor

• Ward 24 Committee and Ward Councilor

• Kopanong Development Forum

• Rapid response committee representing all wards in MAWIGA

• Tshwane North Outreach NGO from Winter veldt

• Sanco Mabopane

• Church fraternal representing Mabopane and Winter veldt Churches

• Church fraternal representing Ga Rankuwa Churches

• NGO Mabopane

Their main concerns were as stipulated above, long outstanding meter leakages and sewerage blockages,

which are receiving attention as indicated.

WATER INTERRUPTION

There were 5 water pipes burst in Mabopane and 4 in Garankuwa which caused water interruptions. Only

2 pipes burst in Winterveldt took place. Water interruption normally takes place for a day or less and all

relevant stakeholders are informed promptly through the relevant media platforms.

COMMUNICATIONS

All Water and Sanitation communications is done internally and externally as per Communications Policy,

as the need arises.

4.2 CHALLENGES

Table: Challenges

Challenges Interventions implemented Assistance required

1 Under recovery of sales from

customers which continue to threaten

the financial sustainability of the entity.

The credit control measures are

continuously being implemented to

improve the situation.

The CoT intervened and is currently

assisting SWA with data cleansing,

billing, revenue collection and

meter reading.

2 Sewerage blockages are not being

attended on time.

Only 30% of the job cards issued are

attended to by the service provider, this

matter on poor service delivery by the

service provider has been escalated to

region 1 for intervention.

The CoT to uplift their current

service on sanitation to MAWIGA

areas.

3 WWTW is experiencing repeated cable

theft and vandalism, which resulted in

SWA entered into a transversal contract

with the CoT for the provision of security.

Security to be increased at WWTW.

Monthly meetings between WWTW,

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the breakdown of treatment processes

and the discharge of non-compliant

effluent into the water courses.

SWA also entered into transversal

contracts for electrical, mechanical and

inlet works maintenance, Most of repairs

have started on 29 May 2017 & in

progress.

ELECTRICITY & TMPD, are taking

place to strategize security matters

CoT Metro Police to assist in

patrolling WWTW, improve security.

4 Babelegi and Sandspruit WWTW were

operated by a private contractor. SWA

took over the operation of these

Treatment Works in April 2016. There

are no permanent personnel to operate

and maintain these Works.

CoT approved the filling of vacant funded

positions at Klipgat and Temba. These

positions will augment staff compliment

at Babelegi and Sandspruit WWTW. The

positions were advertised on 19.05.2017,

with closing date of 01.06.2017.

Interviews have been concluded and successful candidates will be given their appointment letters.

5 Data migration process delayed Weekly meetings scheduled to manage the project.

Fast track the process of data migration to be able to ensure the smooth transition of customer accounts from SWA to CoT and the billing process.

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5. DEPENDENCIES AND CROSS CUTTING ISSUES

Table: Dependencies and Cross Cutting Issues

Challenges Interventions implemented Dependency Support

1 Systems not integrated

and outdated.

Engagements are made with the CoT to migrate all

system related data onto the SAP system.

Awaiting the project plan on how the

activities will be conducted from the

CoT as soon as possible as the entity

is struggling, e.g. customer queries

are not well captured and attended to

effectively, and revenue collection is

not yielding results anticipated due to

data not being adequate.

MARKETING AND COMMUNICATION

SWA still receives high volume of meter leakages and sewer blockages and is unable to address those queries within the stipulated service standards. A tender to address meter queries was cancelled due to unwinding of SWA as per the Council Resolution of the 27th October 2016. CoT have assisted SWA by allowing the Entity to get both domestic and bulk water meters directly from CoT Stores.

OPERATIONS

Sewerage queries are continually attended by the appointed service provider but are still not addressed on time as some of the blockages require a sewer jet, which the procurement process for it delays most of the time. Also the employees of the service provider are constantly on a go-slow as they are demanding that they must be permanently absorbed in the CoT organizational structure.

WASTE WATER TREATEMENT WORKS

The WWTW is still experiencing repeated cable theft, burglary and vandalism, which resulted in the breakdown of treatment processes and the discharge of non-compliant effluent into the water streams. Because of such non-compliance, the National Department of Water and Sanitation has issued predirective and directives in terms of section 19 (3) of National Water Act No. 36 of 1998, for failure to take reasonable measures to prevent pollution from occurring from Rietgat, Klipgat and Sandspruit WWTW.

Maintenance Implementation Plan was developed to improve the conditions at Waste Water Treatment Works and address issues raised in the predirective and directives from the Department of Water and Sanitation.

The CoT has sourced maintenance contractors to address outstanding and non-procured maintenance to conduct maintenance works at the five (5) SWA WWTW’s.

The shortage of personnel is another contributing factor to non-compliance of WWTW. A request was submitted to CoT for approval to fill the vacant funded positions at Klipgat and Temba WWTW, which approval was granted.

SWA HR department has internally advertised posts on the 19 May 2017, to fill critical vacant positions at WWTW. This exercise will improve one aspect of compliance related to the minimum requirement of personnel to operate and maintain WWTWs.

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6. OPERATION CLEAN AUDIT

Description 2014/15 2015/16 Status

Audit Opinion Unqualified Unqualified

Number of Findings 31 25

Resolved 31 24

In Progress 0 1

Not Implemented 0 0

Repeat Findings 20 7

Table: Evidence

Evidence for the quarter submitted with report (Yes/ No)

Entity evidence files updated, centralized and verified in the department (Yes/ No)

If no, indicate corrective measure

Entity project files for the quarter compiled, centralized and verified (Yes/No)

If no indicate corrective measure

Yes Yes N/A Yes N/A

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7. GOVERNANCE

7.1 BOARD COMPOSITION

Ms Zandile Kabini (Chairperson of Board)

Mr Lucky Bokaba (Non-Executive Member)

Mr Victor Maboka (Non-Executive Member)

Adv. Billy Maboka (Non-Executive Member)

Mr Zwe Ndlala (Non-Executive Member)

Ms Bongiwe Zwedala (Acting Executive Member)

*# Mr Lucky Bokaba was retired on 30 November 2016

*# Mr Victor Maboka was retired on 30 November 2016

7.2 4th Quarter Board Meeting:

Name Position

Regular Board Meeting

Special Board Meeting

APC#

Governance Risk and Finance

Special Governance Risk and Finance

Operations

Social and Ethics

HR and Remco

AGM 2015-16 05 August

MMC Special Meeting

Chairperson's Quarterly Meeting

Total

Z Kabini Chairperson

5

3

2

0

0 0

0

0

1

1

0

12

CV Maboka

Non-Executive Director

2

2

0

2

1

2

2

0

1

0

0

12

LN Bokaba


2

2

0

0

0

2

2

2

1

1

0

12

AZ Ndlala Non-Executive Director

5

2

0

2

1

2

0

2

1

1

0

16

Adv B Malatji


5

2

0

2

1

0

2

2

1

0

0

15

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7.3 CHALLENGES

Challenges Interventions Implemented Status

Capacity in the Office of the Company Secretary

The Board approved the appointment of the Assistant Company Secretary and 2 interns in order to fill the capacity gap. The appointments are in process.

One EPWP beneficiary was appointed from January 2016 until 31 December 2016, and the position of Assistant Company Secretary was advertised hence the recruitment process was put on hold due to the unwinding process.

Appointment of the Chief Executive Officer

The appointment of the Chief Executive Officer is very critical in order to provide effective strategic leadership for the implementation of the SWA strategy and business plan, as well as organizational control and efficient management of the organization’s resources, including the entity’s sustainability. The appointment of the CEO is in process.

The Board of Directors shortlisted the candidates on 24 March 2016 however the appointment was put on hold by CoT and the CoT seconded Ms Bongiwe Zwedala to act as SWA Chief Executive Officer from 16 August 2016 to date.

Rejection of SWA MoI by CIPC based on non-compliance of the MFMA requirements (MoE).

Evidence lodged in midyear

The Company Secretary sought an advice from Shareholder Unit whereby the matter was escalated for legal advice (CoT).

The legal unit of CoT advised that it will be a difficult exercise to deregister SWA as a SOC and re-register it in terms of the requirements of MFMA. However, this was also affected by the unwinding of SWA resolution by Council. SWA will therefore carry its business as a SOC until it’s been deregistered through the unwinding process.

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7.4 ACHIEVEMENTS BOARD AND SUBCOMMITTEES

QUARTER GRF HR-REMCO SOCIAL AND ETHICS OPERATIONS

Jul-Sep 15 Monitoring the implementation of the approved policies in 2015 including the debt collection strategy.

Monitoring the implementation of the HR policies approved in 2015 especially the Performance Development Policy.

Monitoring the implementation of the approved policies in 2015 and managing the ethical conduct of management.

Monitoring the implementation of the policies and strategies approved in 2015 in order to achieve the green drop status.

Oct-Dec 15 The Board Subcommittee were disestablished due to the retirement of 2 Board Members by the Shareholder that led SWA to be left with only 3 Board members.

The Board Subcommittee were disestablished due to the retirement of 2 Board Members by the Shareholder that led SWA to be left with only 3 Board members.



Jan-Mar 16 Apr-June 16

Council Resolution 27 October 2016 Background

A. The City has the duty in terms of the Constitution of the Republic and the Local Government: Municipal Systems Act 32 of 2000 (“the Systems Act”) to ensure that municipal services, including the supply of water services, are provided to the local communities in a financially and environmentally sustainable manner and that services provided are economic, efficient and effective.

B. SWA is a municipal entity as envisaged in the Systems Act and is also wholly controlled by the City. Its main object is to develop, prepare, install and maintain water and sanitation services and related services to the benefit of the community to promote the management of water, sanitation and road services for communal benefit within certain parts of the City’s jurisdiction.

C. On 10 March 2011, the City and SWA concluded a Service Delivery Agreement in terms of which the City appointed SWA to provide water service for and on behalf of the City in the areas of Mabopane, Ga-Rankuwa, Winterveldt and surrounding areas for a period of 5 (five) years in terms of the Water Services Act No. 108 of 1997.

D. The Service Delivery Agreement terminated on 09 March 2016 and in terms of this Agreement, upon termination of the Agreement, amongst others:

i. All employees of SWA shall be transferred to the City or any entity determined by the City with the retention of all benefits and on the same terms and conditions of service as they were during their employment at SWA;

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ii. Any plan, manual, database, inventory, survey, financial or other record, and all information compiled by SWA in terms of the Agreement shall be the property

of the City; and

iii. SWA shall return to the City all Water Infrastructure and assets required for the performance of water services as well as all information pertaining to such water services.

E. In order to attain its constitutional mandate as set out above and given the termination of the Service Delivery Agreement, on 27 October 2016, the City’s Council resolved to unwind and disestablish SWA in accordance with the Systems Act with the effect that all of SWA’s employees, assets, liabilities, rights and obligations will be transferred from SWA to the City on or before 30 June 2017.

F. Pursuant to the Council’s resolution referred to above, on 07 April 2017 SWA’s board of directors passed a resolution to transfer all of SWA’s employees, assets, liabilities, rights and obligations will be transferred from SWA to the City on or before 30 June 2017.

7.5 DIRECTOR’S REMUNERATION

Entity’s remuneration policy

The remuneration of Non-Executive Directors’ is determined by the City of Tshwane Metropolitan Municipality (CTMM) through its Remuneration Policies. The Remuneration Policy is intended to guide Municipal Entities (ME) of the City of Tshwane in the recruitment, retention and motivation of a consistently high performing human resource, thereby contributing to the achievement of the short and long term objectives of the MEs.

Year to date

Directors Jul Aug- Aug-Retainer 2015-16

Sep Oct Nov Dec Jan Feb Mar Apr May June June-Retainer 2016-17

Total (Year to date)

Ms Zandile Kabini

0 53440 53000 0 21376 18704 0 32064 0 0 32064 0 21376 53 000 285 024

Mr Lucky Bokaba

26720 32064 27000 0 40080 10688 0 0 0 0 0 0 0 0 136 552

Mr Victor Maboka

26720 42752 27000 0 40080 5344 0 0 0 0 0 0 0 0 141 896

Adv. Billy Malatji

26720 40080 27000 0 32064 5344 0 13360 0 0 21376 0 13360 27000 206 304

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Directors Jul Aug- Aug-Retainer 2015-16

Sep Oct Nov Dec Jan Feb Mar Apr May June June-Retainer 2016-17

Total (Year to date)

Mr Zwe Ndlala

26720 29392 27000 0 40080 10688 0 24048 0 0 21376 0 13360 27000 219 664

Total 106880 197728 161000 34736 173680 18704 0 69472 0 0 74 816 0 48096 107000 R989 440

7.6 ANNUAL GENERAL MEETING 2016-17

The Annual General Meeting for 2016-17 financial year did not take place in May 2017 as per the Board calendar. The Shareholder advised that the Annual General Meeting of SWA be put on hold. The Retainer fee for 2016-17 will therefore be paid to the Board members in June 2017 due to the fact that SWA will not be able to pay the Board after 30 June 2017. This is due to the term of office of the Board ending by 30 June 2017. The Shareholder will have no choice but to authorize the payment of the Board Retainer fee for 2016-17 financial year that was supposed to be approved at the Annual General meeting of May 2017.

7.7 ANNUAL RETURN 2016-17

The Annual Return for 2016-17 financial year was complied with on 28 June 2017. (Proof attached as Annexure A).

Section 5: Company Secretarial Function

The Office of the Company Secretary plays a vital role in providing guidance on every aspect of running the organisation to ensure that the company operates within and abides by the rules and regulations. This unit ensures that the organisation complies with all legislation and statutory requirements, support the members of the board, support executive, shareholder engagements and coordinate the board stakeholder events.

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8. HUMAN RESOURCE MANAGEMENT

8.1 DIRECTORS REMUNERATION AND SENIOR MANAGERS (01 JULY-31 AUGUST 2016)

8.2 HUMAN RESOURCES MANAGEMENT ADMINISTRATION

Table: Headcount

DEPARTMENT NUMBER OF POSTS ON APPROVED ESTABLISHMENT

NUMBER OF POSTS FILLED

EPWP/ TEMPORARY

TOTAL NO OF VACANT POSITIONS

CEO’S OFFICE 6 4 0 2 OPERATIONS AND MAINTANANCE 92 85 0 7 MARKETING AND COMMUNICATIONS 34 26 0 8 LEGAL SERVICES 4 3 0 1 FINANCE 78 70 0 8 HRM 12 5 2 7 ICT 3 3 0 0 RISK 7 5 0 2 WASTE WATER TREATMENT PLANTS 67 42 16 25 TOTAL 303 243 18 60

Table: Reasons why staff left the entity

Termination Type Number

Retirement 01 Resignation 01 Death 00 Contract Expired 00 Dismissal-misconduct 00 Dismissal-inefficiency 00 Discharge due to ill health 00 Dismissal-operational changes 00 Other 00 Total 02

Company Contributions

Names

Basic

Salary

Vehicle

Allowance

Cellphone

Allowance

Medical

contribution

Retirement

Fund

Contributions

Risk

Benefits

Housing

Bond

/Allowance UIF SDL

Spouse

Cover

Acting

Allowance

Expense

Allowance

Leave

Paid

Out

Prorata

Annual

Bonus Total

A.G Singo (HR Manager) 147,930.00 57,846.00 3,348.00 16,167.90 18,165.81 12,219.03 13,489.32 446.16 2,153.78 798.81 - - - - 272,564.81

S Baronian(Operations Manager) 152,442.00 57,846.00 3,348.00 19,584.60 18,719.88 12,591.72 11,310.21 446.16 2,207.65 823.20 - - - - 279,319.42

G.J Modise (Marketing Manager) 147,930.00 57,846.00 3,348.00 17,572.80 18,165.81 12,219.03 7,884.51 446.16 2,111.78 798.81 - - - - 268,322.90

L.M Dichaba (Risk Manager) 147,930.00 57,846.00 3,348.00 16,167.90 18,165.81 12,219.03 7,115.34 446.16 2,090.04 798.81 - - - - 266,127.09

SF Mathibela (ICT Manager) 145,755.00 57,846.00 3,348.00 17,572.80 17,898.72 12,041.85 13,287.66 446.16 2,278.68 787.23 - - - - 271,262.10

EG Molefe (Company Secretary) 120,648.00 50,496.00 3,003.00 5,411.70 14,815.56 9,965.52 7,113.00 446.16 1,669.22 - - - - - 213,568.16

Z Zwedala (Acting CEO) - - - - - - - 148.72 200.00 - 20,000.01 4,541.04 - - 24,889.77

AT Phiri (Acting CFO) - - - - - - - 80.89 80.89 - 8,088.30 10,001.10 - - 18,251.18

Total 862,635.00 339,726.00 19,743.00 92,477.70 105,931.59 71,256.18 60,200.04 2,906.57 12,792.04 4,006.86 28,088.31 14,542.14 - - 1,614,305.43

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Table: Injury on duty

Nature of injury on duty Number

Required basic medical attention only 04 Temporary Total Disablement 00 Permanent Disablement 00 Fatal Disablement 00 Total 04

8.3 EMPLOYEE RELATIONS

Table: Collective Agreements Concluded

Subject Matter Date

None

Table 11 Disciplinary Action

Disciplinary Action

Male Female Total

Total African Coloured Indian White African Coloured Indian White

1 0 0 1 0 0 0 0 2

Table: Misconduct and disciplinary hearings finalized

Outcomes of Disciplinary Hearing

Number Total

TOTAL 0 1

Table: Types of Misconduct addressed at disciplinary hearing

Type of misconduct Number Total

Absence without leave 0 0 Abscondment 0 0 Failed to follow the correct supply chain management process

1 1

Financial misconduct 0 0 TOTAL 0 0

Table: Grievance logged

Number of grievances addressed Number

Number of grievance resolved 0 Number of grievance not resolved 0 Total number of grievances lodged 0

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Table: Disputes logged

Number of dispute addressed Number

Number of disputes Upheld 0 Number of disputes Dismissed 0 Number of disputes in progress 2 Number of disputes withdrawn 0 Total number of disputes lodged 0

Table: Strike actions

Strike Actions

-

Total number of person working days lost 0 Total cost(R’000) of working days lost R0.00 Amount (R’000) recovered as a result of no work no pay R0.00

Table: Precautionary suspensions

Precautionary Suspensions

-

Number of people suspended 0 Number of people whose suspension exceeded 30 days 0 Average number of days suspended 0 Cost (R0’000) of suspensions R0.00

.

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9. RISK MANAGEMENT AND INTERNAL CONTROLS

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Strategic Risk

Root Cause

IR RR Management Action Plan Action Owner Time Frame Q4 Progress Evidence

Strategic Objective – Promote Sustainable Service Infrastructure and Human Settlement Management

1. Failure to continuously and consistently supply of quality water and sanitation services

*Dependency on Randwater to supply bulk water *No Capital expenditure allocation (CAPEX) *No mandate to execute CAPEX within area of supply *Aging infrastructure *Current infrastructure unable to meet the demand due to growing population. * Shortage of national water resource * Unclear roles and responsibility on the sewer collection (sanitation services) between CoT and SWA C

riti

cal

Cri

tica

l

1. Upgrade WMS system to assist in the identification of maintenance including leakages

1.Operations Manager

1. 31.03.17

Cancelled due to Disestablishment

Council Resolution dated 27 October 2016

2. SWA to provide input on CAPEX budget for the 2017/18 financial year.

2. CFO

2. 31.12.16

Completed in Q1

3. Engage CoT in order to clarify the roles and responsibility of SWA in terms of Sanitation Services

3. Operations Manager

3. 31.12.16

Cancelled due to Disestablishment process


Strategic Objective – Improve Financial Sustainability

2. Threat to going concern

*Declining collection levels *Poor data integrity *Mandate is limited to unsustainable areas of supply (Mabopane, Wintervelt & Ga-Rankuwa) * Failure of the CoT to pay operational grant timely *Continuous dependency on CoT operational losses funding due to the following: a. Inability to shift costs to customer due to fact that tariff are uniformed and determined at the parent municipal level b. Inadequate cross subsidisation amongst customers due to growing levels of registered indigents * Illegal connections and non-revenue water *High maintenance costs due to aging infrastructure *Fraud, theft and corruption

Cri

tica

l

Hig

h

1. Participate in the CoT transversal contract for debt collectors.

1. CFO

1. 30 September 2016

1. 19 Debt collectors have been appointed through the CoT transversal contract

Debt Collectors contract

2. Procure IT solution to improve revenue management.

2. IT Manager

2. 30 June 2017

2. Cancelled due to Disestablishment process


3. Conduct the data cleansing exercise.

3. Revenue Manager

3. 30 June 2017

3. Data cleansing project is 95

completed and the remaining

data is now collected as the

meter readers are reading and

thus updated in the system.

Forms available and information also captured in the system

4. Engage CoT to pay operational grant timely.

4. CFO

4. Quarterly

4. CoT has been engaged by the ACFO

4- Letter to CoT

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Strategic Risk

Root Cause


3. Inadequate human capital capacity to deliver on the strategy

*Structure not aligned to operations *Functions overlapping *Lack of Retention and Recruitment Strategy

Cri

tica

l

Hig

h

1. HR Manager

1. 31 December 2016

1. Cancelled due to Disestablishment process and

1- Council Resolution dated 27 October 2016

2. HR Manager

2. 30 June 2017 2. WWTW critical positions have been advertised on the 19 May 2017

2- Advert

Strategic Objective – Promote Governance and Active Citizenry

4. IT Infrastructure not supporting the operations of the organisation

*Internal processes not aligned to changes in technology *Legacy system *Unreliable system **Failure of Information Technology systems *Over-reliance on third party service provider C

riti

cal

Hig

h

1. Procure the IT solution to improve SWA IT infrastructure.

ICT Manager 1. 30 June 2017 1. Cancelled due to Disestablishment process


Strategic Objective – Promote sustainable service infrastructure and human settlement management

5. Non reduction of unaccounted water

*Illegal connections (by-passing) *Leaking meters on RDP and new developments *Delay in handing over new development (future connections) to ODI & delay in meter installations at the new development , Dept. of Housing not reporting handing over of houses to SWA areas to SWA directly * Overflow of reservoirs *Inaccurate meter reading and billing *Fire hydrants are not locked and as a results the community and contractors are drawing water from the water fire hydrants *Wintervelt peri-uburn area not metered due to houses inside plots not formalised

Cri

tica

l

Hig

h

1. Inspections to be made on new developments (mainly RDP as it is the main contributor of water loss)

1.Project Coordinator

1. Quarterly

1. Inspections on RDP houses that do not have meters has been conducted

1- List of inspections made

2. Establish relationship with Housing Company Tshwane (for new connections) and CoT Housing and human settlement department during the planning phase


2. 31 March 2017

2. Cancelled due to disestablishment process

2- Council Resolution dated 27 October 2016

3. Study to investigate illegal connections on areas where our network runs through other municipalities (Appointing consultants

3. Operations Manager

3. 31 March 2017

3.Cancelled due to disestablishment

3- N/A

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Strategic Risk

Root Cause


4. Relocation of meters from inside the yard to outside yard


4. 30 June 2017

4.Relocation of meters is a CAPEX project which will be done by CoT. The activity will be conducted by CoT after the disestablishment process.

4- N/A

5. Conduct study on Water Conservation and Demand Management


5. 30 June 2017 5. Cancelled due to disestablishment process

5- N/A

Strategic Objective – Promote Sustainable Service Infrastructure and Human Settlement Management

6. Failure to continuously comply with the effluent quality standard

*Aging infrastructure *Theft of assets and vandalism to infrastructure *Lack of security systems *Insufficient funds for operational maintenance *Lack of skilled personnel as per legal requirements (regulation 17 of water services act)

Cri

tica

l

Hig

h

Implement the preventative maintenance plan 2. Implement the following measures to improve security at WWTW: a) Monthly monitoring of the securing contract b) Participate in a CoT transversal security contract for electronic security 3. Capacitate the WWTP in terms of regulation 17 Water Service Act requirements

1. Acting Manager: WWTP

1. Quarterly

1. Introduction of scheduled preventative maintenance for equipment’s has commenced

1- Maintenance schedules

2. Asset Manager/Risk Manager

1. (a) Monthly

2 (a) Performance monitoring of security was monitored internally and meeting was held with the service provider to discuss the performance of the contract.

2- Security compliance checklist

Risk Manager

(b)31 December 2016

Due to delay in finalizing the CoT new tender, the Council has approved the extension of the current contract. The contract has been extended and will cease when the disestablishment process ends or when the CoT contract is finalized, whichever comes first.

(b) N/A

3.Acting Manager: WWTP

3. 30 June 2017 3. WWTW critical positions have been advertised on the 19 May 2017

3 Advert

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10. SUPPLY CHAIN MANAGEMENT

10.1 DEVIATION REPORT APRIL 2017 – JUNE 2017 SCM: REGULATION 36(2) OF THE SCM REGULATIONS

SCM REPORTING : SCM REGULATION 36(2):

NO

DATE DEPARTMENT/BUSINESS UNIT

ORDER NO

SERVICE PROVIDER

ITEM DESCRIPTION

AMOUNT REASON FOR DEVIATION

B-BBEE LEVEL CONTRIBUTOR

SMME

CONTROL MEARSURE

PROGRESS ON STATUS UP TO DATE

COMMENTS/REMARKS

April -June 2017

1 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

R 0.00

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10.2 SCM COMPLIANCE IN TERMS OF SCM REGULATIONS (SCMR) 12

SCM REPORTING Q3: REGULATION 6(3)

Apr-17

DATE OF ORDER

ORDER NO COMPANY NAME DESCRIPTION OF SERVICE/QUOTE/TENDER AMOUNT B-BBEE SMME TSHEPO 10 000

07/04/2017 9087

Kabelo & Kopano Cleaning Sewerage Projects

Supply and delivery of operations material: Adaptors, washer rubber and coupling R189 618.90

EME/Level 1 Yes, very small

N/A, National Treasury CSD

24/04/2017 9088

Gola ka Kitso

Supply and delivery of operations material: shovel round nose, hacksaw frame, adaptors, fire hydrant R196 946.40

EME/Level 1

Yes Micro


May-17

03/05/207 9094 A Kutumela CC

Supply, delivery and installation of Mesh fence and Tools and Cleaning Equipment at SWA stores R 32 125.20 Level 3

Yes, medium


04/05/2017 9089-9091 Malaka Pipes

Supply and delivery of operations material: Galvanised elbow, nipple and plugs, red bush, galvanised socket, PVC, cutting disk, polly pipe and couplings R 199 348.88 EME/Level 1 N/A


04/05/2017 9092 Ndzaka Transportation (Pty) Ltd

Removal of safes from central city to SWA Regional Office R 13 100 EME/Level 1

Yes, medium


03/05/207 9094 A Kutumela CC

Supply, delivery and installation of Mesh fence and Tools and Cleaning Equipment at SWA stores R 32 125.20 Level 3

Yes, medium


Jun-17

R 631 139.38

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11. CONCLUSION AND RECOMMENDATIONS130

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Taking to account the council resolution dated 27th October 2017 to disestablish SWA, SWA will continue

with the endeavors of debt collection and service delivery until the official handover of SWA to Cot.

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ANNEXURE A: FINANCIAL PERFORMANCE

STATEMENT OF FINANCIAL POSITION AS AT 31 MAY 2017

Works Association - Table F2 Monthly Budget Statement - Financial Performance (revenue and expenditure) – M08 May 2017

Description

Monthly actual

YearTD actual

YearTD budget

YTD variance

YTD variance

Full Year Forecast

R thousands

%

Revenue By Source

Service charges - water revenue 10,692 116,463 163,025 (46,562) -28.6% 179,632

Service charges - sanitation revenue 4,305 45,168 49,752 (4,584) -9.2% 54,820

Interest earned - external investments 61 303 929 (626) -67.4% 1,000

Interest earned - outstanding debtors 5,779 57,990 47,238 10,752 22.8% 50,870

Transfers recognised - operational 21,983 264,496 160,591 103,905 64.7% 172,940

Other revenue 54 244 26,579 (26,335) -99.1% 28,623

Total Revenue (excluding capital transfers and contributions) 42,874 484,663 448,112 36,551 8.2% 487,884

Expenditure By Type

Employee related costs 7,639 89,315 82,879 6,435 7.8% 90,025

Remuneration of Directors – 864 1,025 (161) -15.7% 1,080

Debt impairment 15,340 132,925 54,275 78,650 144.9% 56,762

Collection Cost – 852 2,836 (1,984) -70.0% –

Depreciation & asset impairment 155 1,734 – 1,734 #DIV/0! 3,130

Finance charges – – – – –

Bulk purchases 18,503 203,529 190,929 12,600 6.6% 207,873

Other materials 178 2,699 9,873 (7,174) -72.7% 10,980

Contracted services 2,497 19,023 41,935 (22,912) -54.6% 46,612

Transfers and grants – – – – –

Other expenditure 1,145 17,390 63,978 (46,588) -72.8% 71,422

Total Expenditure 45,458 468,331 447,731 20,600 4.6% 487,884

Surplus/(Deficit) (2,584) 16,332 382 15,950 4178.0% –

Surplus/(Deficit) before taxation (2,584) 16,332 382 15,950 4178.0% –

Surplus/(Deficit) for the year (2,584) 16,332 382 15,950 –

EXPENDITURE BY TYPE AS AT 31 MAY 2017

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Vote Description

2015/16 Current Year 2016/17

Audited Outcome

Original Budget

Adjusted Budget

YearTD actual

Full Year Forecast

R thousands

ASSETS

Current assets

Cash 12,510 17,786 18,710 17,271 18,710

Consumer debtors 15,875 13,456 13,456 30,200 13,456

Other debtors 19,963 55,000 55,000 566,251 55,000

Current portion of long-term receivables – – –

–

Inventory 3,478 3,826 3,826 3,556 3,826

Total current assets 51,827 90,068 90,992 617,278 90,992

Non current assets

Property, plant and equipment 22,116 15,494 15,494 4,878 15,494

Intangible – 5,000 5,000 41 5,000

Total non current assets 22,116 20,494 20,494 4,919 20,494

TOTAL ASSETS 73,943 110,562 111,486 622,198 111,486

LIABILITIES

Current liabilities

Consumer deposits 3,700 4,000 4,000 3,962 4,000

Trade and other payables 60,730 83,780 83,780 589,401 83,780

Provisions – 7,000 7,000 9,364 7,000

Total current liabilities 64,430 94,780 94,780 602,727 94,780

Non current liabilities

TOTAL LIABILITIES 64,430 94,780 94,780 602,727 94,780

NET ASSETS 9,513 15,782 16,706 19,471 16,706

COMMUNITY WEALTH/EQUITY

Accumulated Surplus/(Deficit) 9,513 15,782 16,706 19,471 16,706

TOTAL COMMUNITY WEALTH/EQUITY 9,513 15,782 16,706 19,471 16,706

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ANNEXURE B: MUNICIPAL ENTITIES BUSINESS PLAN 2016/17

SANDSPRUIT WORKS ASSOCIATION

2016/17 APPROVED ADJUSTED BUSINESS PLAN

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TSHWANE ECONOMIC DEVELOPMENT AGENCY

4th QUARTER REPORT

(April - June 2017)

SIGN OFF

CHIEF FINANCIAL OFFICER

Mr. Thami Mkhwanazi

CHIEF EXECUTIVE OFFICER

Mr. Solly Mogaladi

DATE

ANNEXURE C135

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TABLE OF CONTENTS

Contents

CONTENTS ...................................................................................................................................................................................... 2

1 EXECUTIVE SUMMARY ......................................................................................................................................................... 3

2 PERFORMANCE AGAINST THE ENTITY BUSINESS PLAN ............................................................................................ 4

3 PERFORMANCE AGAINST THE CORPORATE SDBIP .................................................................................................. 5

4. FINANCIAL PERFOMANCE ............................................................................................................................................... 7

5. GOVERNANCE ...................................................................................................................................................................... 8

5.2 BOARD AND COMMITTEES ........................................................................................................................................................... 8

INDICATED IN THE TABLE BELOW ARE THE BOARD AND COMMITTEE MEETINGS HELD DURING THE PERIOD UNDER REVIEW.

ATTENDANCE AT MEETINGS HELD DURING THE QUARTER UNDER REVIEW WAS AS FOLLOWS: ....................................................... 8

5.3 DIRECTORS REMUNERATION ........................................................................................................................................................ 9

5.4 RISK MANAGEMENT AND INTERNAL CONTROLS .......................................................................................................... 10

5.5 LITIGATIONS ....................................................................................................................................................................................... 10

6. HUMAN RESOURCES ........................................................................................................................................................ 10

7. DEPENDENCIES AND CROSS CUTTING ISSUES ....................................................................................................... 13

8. OPERATION CLEAN AUDIT ............................................................................................................................................. 13

AOPO- OBJECTIVE PLANNED NOT INCLUDED IN THE APR ................................................................................................................ 16

9 CONCLUSION AND RECOMMENDATIONS ................................................................................................................... 17

ANNEXURE A: EXTRACT OF ENTITY’S BUSINESS PLAN REPORT FROM QPR .......................................................... 17

ANNEXURE B: STATEMENT OF FINANCIAL POSITION AND PERFORMANCE ........................................................ 18

ANNEXURE C: RISK REGISTER ................................................................................................................................................ 21

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1 EXECUTIVE SUMMARY

This 4th quarter report has been prepared against Council approved TEDA 2016/17

business plan and adjusted scorecard. The 2016/17 scorecard was adjusted and

approved by Council in April 2017 as three Strategic Objectives (SO) had to be removed.

The three SO’s had no quarterly targets and therefore no link between the business plan

and performance reporting. Furthermore, the SO’s were related to income generating

assets belonging to the City.

The adjusted scorecard had 13 KPI’s for the year and 11 KPI’s were applicable in quarter

4. The entity achieved 100% of the targeted performance in the period under review.

Performance highlights for the quarter are as follows:

The entity through its facilitation role of the Tshwane Freight Terminal and Logistics

hub has facilitated an investment commitment amounting to R1.2 billion. The

investment is expected to create 80 temporary jobs during construction and 400

permanent jobs in the first three years of operation. The investment contributes

directly towards the City of Tshwane’s SDBIP KPI’s which are rand value of investment

attracted to the city by TEDA and number of income-earning opportunities

facilitated by TEDA.

A high level feasibility study for the Tshwane Agro-processing hub bio-energy facility

as well as a pre-feasibility study of the Clothing and Textile hub have been

completed.

Export capacity building workshop was held on 26 June 2017 whereby 65 Companies

attended the workshop. The collaboration between the DTI and TEDA on the Global

Exporter Passport Programme (GEPP) has resulted in 390 companies having been

trained on export interventions in Tshwane alone. Some of the presenters on the

Export Capacity Building Workshop included ECIC, Standard Bank, Trade Invest SA,

EMIA, etc.

Two trade missions in the month of June 2017 were undertaken. The first mission was

to the Netherlands focusing on Agro-processing where seven (7) Multi Sectoral

Tshwane Based companies were selected to undergo the mission. Companies had

one on one meetings with Netherlands based companies for positive leads and

investment opportunities.

The second trade mission was to the Paris Air Show. The delegation was led by MMC

for Economic Development and Spatial Planning and consisted of Aerosud, Denel,

Electro-thread, AAT Composites, Dalif and IDC. The Paris Air show was attended by

world leading aerospace manufacturers of components and Original Equipment

Manufacturers (OEMs) like Boeing, Airbus, Safran and Martin Lockheed. TEDA held

various meetings with over 15 companies and have received positive leads and is

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currently in discussions with some of the companies for follow up discussions and

possible follow up visit to South Africa.

2 PERFORMANCE AGAINST THE ENTITY BUSINESS PLAN

2.1 SUMMARY OF PROGRESS AGAINST THE ENTITY BUSINESS PLAN TARGETS

Table 1: Summary of performance against the business plan Total Nr of

targets for the

financial year

Number of

targets for the

quarter

Nr of targets

not achieved

for the quarter

Nr of targets

achieved for

the quarter

Nr of targets

not achieved

year to date

Nr or targets

achieved

year to date

13 11 - 11 - 11

Table 2: Business plan targets not achieved KPA Indicator nr Reason for

non-

achievement

Corrective

measures

implemented

to date

Planned

corrective

measures to

be

implemented

Responsible

official for

corrective

measure

Due date

N/A

Table 3: Business plan targets achieved Output Indicator 4th Quarter Target 4th Quarter Actual

Export development

and promotion

services provided.

Number of capacity

building initiatives

held for SMME export

readiness.

1 1

Trade and investment

missions undertaken.

Number of trade and

investment missions

participated in.

1 2

Investment attracted.

Rand value of

investment attracted

to the City by TEDA.

R1b R1.2b investment

commitment.

Facilitate economic

growth that is labour

absorptive

Numberof income

earning opportunities

facilitated by TEDA.

300 400 jobs to be

created.

Tshwane Agro-

processing Hub.

Preliminary design of

the Hub produced.

Preliminary design of

the Hub signed off.

Preliminary design

report completed

and signed-off.

Tshwane intermodal

Freight Terminal and

logistics Hub.

Development

facilitation. Project reports.

Project progress

report produced.

Revitalisation of inner

city and designated

areas.

Preparation work on

refurbishment

completed.

Statutory approval

(EIA and PHRA-G

permit).

Application

documents of EIA

opinion and PHRA-G

permit.

Clothing and Textile

Hub.

Pre-feasibility study

produced.


developed


report completed

Tshwane Agro-

processing hub bio

energy facility.

Feasibility study

produced.

High level detailed

feasibility study

produced.

High level detailed

feasibility study report

completed.

City’s increased Number of exhibitions 3 Actual achievement

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Output Indicator 4th Quarter Target 4th Quarter Actual

competitiveness. and trade shows

participated in.

as at end of quarter 3

was 7 exhibitions.

Approved quarterly

risk control matrix.

% of strategic risks

monitored against the

approved strategic

risk register.

100% 100%

3 PERFORMANCE AGAINST THE CORPORATE SDBIP

3.1 PERFORMANCE AGAINST THE SDBIP TARGETS

TEDA’s contribution to SDBIP targets is now measured at the entity’s level and has been reported

accordingly in the entity’s Business Plan.

Table 4: Summary of performance against the SDBIP targets Total Nr of

targets for the

financial year

Number of

targets for the

quarter

Nr of targets

not achieved

for the quarter

Nr of targets

achieved for

the quarter

Nr of targets

not achieved

year to date

Nr or targets

achieved

year to date

N/A

Table 5: SDBIP targets not achieved KPA Indicator

nr

Reason for

non-

achievement

Corrective

measures

implemented

to date

Planned

corrective

measures to be

implemented

Responsible

official for

corrective

measure

Due

date

N/A

3.2 SUMMARY OF PROGRESS ON PROJECTS

TEDA did not have Capital Projects in the current financial year.

Table 6: Summary of projects Total nr of

Projects

Nr of projects

that achieved

planned non-

financial

milestones for

the quarter

Nr of projects that

did not achieve

planned non-

financial

milestones for the

quarter

Nr of projects that

achieved planned

non-financial

milestones year to

date

Nr of projects that

did not achieve

planned non-

financial

milestones year

to date

N/A N/A N/A N/A N/A

Table 7: Non achieved milestone targets on projects and corrective measures

IDP project

nr

Corrective

measures

implemented for

non-achieved

milestone

Corrective

measures to be

implemented

Date of

implementation

Responsible

official

N/A N/A N/A N/A N/A

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4. FINANCIAL PERFOMANCE

PLEASE REFER TO ANNEXURE B.

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5. GOVERNANCE

5.1 BOARD COMPOSITION

Table 8: TEDA Board of Directors

Board Member

Capacity:

Executive / Non-

Executive Race Gender Board Committee Membership

Prof. DL Mosoma

(Chairperson) Non-Executive African Male Social & Ethics

Bahula-Ermias, RS

(Retired 30 June 2017) Non-Executive African Female Finance & Risk

Projects

Gouvelis, H Non-Executive White Male Remuneration

Projects

Mpungose, ZG Non-Executive African Female Trade & Investments

Remunerations

Mpyane, CR (Retired

30 June 2017) Non-Executive African Male Projects

Trade & Investments

Mzizi, SP Non-Executive African Female Projects

Finance & Risk

Sibanda, FK Non-Executive African Male Remuneration

Trade & Investments

Singh, N Non-Executive Indian Female Finance & Risk

Social & Ethics

Thubakagale, JL Non-Executive African Male Finance & Risk

Remunerations

Yates, M Non-Executive White Male Projects

Trade & Investments

5.2 BOARD AND COMMITTEES

Indicated in the table below are the Board and Committee meetings held during the period under review. Attendance at meetings held during the quarter under review was as follows:

Table 9: Board and committee meetings for the quarter and year to date.

Meetings Board REMCO Projects Trade &

Investment

Fin, Risk &

Governance

Social &

Ethics

AGM

Total

Board Members

Mosoma LD (chairperson) 2 - - - - - 1 3

Bahula-Ermias RS 1 - 1 ˗ 1 -

- 3

Gouvelis H 1 ˗ 1 - - ˗

1 3

Mpungose ZG 2 - - 1 - - 3

Mpyane CR 2 - 1 ˗ ˗ ˗ 1 4

Mzizi SP 2 - 1 - 1 - 1 5

Sibanda FK 1 ˗ - - ˗ ˗ 1 2

Singh N 2 ˗ ˗ ˗ 2 - 1 5

Thubakgale JL 2 - ˗ ˗ 2 - 1 5

Yates MW 2 - 1 1 ˗ ˗ 1 4

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5.3 DIRECTORS REMUNERATION

Table10: of TEDA Board remuneration for the quarter

No Surname Initials Year to date

1 Mosoma LD (chairperson) ZG R 66 704.20

2 Bahula-Ermias RS RS R 17 140.00

3 Gouvelis H H R 53 563.10

4 Mpungose ZG LD R 62 133.10

5 Mpyane CR C R 51 849.10

6 Mzizi SP SP R 53 563.10

7 Sibanda FK FK R 29 594.10

8 Singh N N R 53 563.10

9 Thubakgale JL JL R 48 421.10

10 Yates MW MW R 68 989.10

Table 11: Executive remuneration for the quarter

No Name Designation

Total cost to

company per

annum

Total cost to

company:

Monthly before

all deductions

Total cost to

company: before all

deductions for quarter

1 Solly Mogaladi Chief Executive Officer 1 910 265.72 159 188.81 477 566.43

2 Boledi Seopela

Executive Manager:

Corporate Services 1 574 892.84 131 241.07 393 723.21

3 Karin Liebenberg

Executive Manager:

Investment Promotion &

Funding 1 201 963.68 100 163.64 300 490.92

4 Lebogang Mahaye Company Secretary 1 312 410.48 109 367.54 328 102.62

5 Mogau Leshilo

Executive Manager:

Projects Portfolio

Management 1 364 583.12 113 715.26 341 145.78

6 Sello Sefuthi

Executive Manager:

Strategy Performance &

Monitoring 1 166 000.04 97 166.67 291 500.01

7 Thami Mkhwanazi Chief Financial Officer 1 557 100.00 129 758.33 389 275.00

Total 8 176 950.16 681 412.51 2 044 237.54

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5.4 RISK MANAGEMENT AND INTERNAL CONTROLS

Risk Management Division is responsible for the facilitation of risk management processes

with the entity. Strategic and operational risks have been conducted to ensure that risks

which may impede the organization to fully implement its mandate are managed and

reduced to an acceptable level. The following were the activities which took place in Q4.

5.4.1 Strategic risk register

The updated Strategic Risk Control Matrix for Q4 highlights the movements in terms of how

the Entity has implemented the agreed action plans to manage risks identified. Risk

Management Division conducted meetings with Heads of Business Units to document the

progress on the action plans.

5.4.2 Operational Risks

Risk Management Division is currently in the process of reviewing operational risk registers

for all the Business Units. Currently 90% of the business units have their own operational risk

registers that includes the response strategies to all risks that are above the acceptable

threshold level.

5.4.3 Challenges

The risks of interdependencies become critical in the success of the Entity, the Office of

Shareholder Unit should play an important role to ensure that the risks of

interdependencies are managed and reduced. There is little movement on the risk

relating to the implementation of the Financial Sustainability Model as a result of

interdependencies and non-implementation of the SDA by the City.

5.5 LITIGATIONS

The continuing litigation against the company pertains to the legal dispute brought by

Scatterlings, a company previously appointed by the company to deliver the Tshwane

International Trade and Infrastructure Investment Conference (TITIIC).

6. HUMAN RESOURCES

6.1 RECRUITMENT

Recruitment processes for vacancies were put on hold. The following resignation occurred

in Q4: Events Coordinator.

Table 12: Number of approved positions filled and vacant

Business Units Approved Posts as per

the structure

No of filled posts Vacant posts

Office of the CEO 7 4 3

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Company Secretary 3 3 0

CFO 8 6 2

Corporate Services 13 9 4

Asset Management 6 0 6

Investment Promotion

& Funding 10 7 3

Internal Audit 2 0 2

Risk and Compliance 1 0 1

Projects Portfolio 10 3 7

Total 60 32 28

6.2 SKILLS DEVELOPMENT

In the period under review, the following skills development interventions were attended

as per the approved 2016/17 Skills Development Plan:

Strategic Leadership Programme;

Finance for Non-Financial Managers;

Strategic Human Resources Management, Recruitment and Selection Masterclass;

Job evaluation and analysis;

ITIL Version 3 foundation;

US119350: Apply accounting principles & procedures in preparation of reports &

decision making; and

US 119331: Conduct working capital management activities in accordance with

sound financial management policy.

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6.3 MINIMUM COMPETENCIES FOR FINANCIAL OFFICIAL

Only one (1) employee on Senior Management level was enrolled with University of

Pretoria to complete modules that were not included in the initial MFMP course

catalogue. The following courses were successfully completed in Q4:

Conduct Supply Chain Performance to South African Municipal Environment; and

Approaches to mapping Municipal Income expenditure

6.4 RECOGNITION FOR PRIOR LEARNING (RPL) FOR EXECUTIVE MANAGEMENT LEVEL

Executives are currently enrolled with Proactive College to complete the Municipal

Finance Management Programme (MFMP) through the RPL process. The following unit

standards were submitted to Assessment & RPL College for moderation:

US116342: Applying approaches to managing municipal income and expenditure

within a multi-year framework

US116362: Manage a municipality’s assets and liabilities

US116358: Contribute to the strategic planning process in a South African

municipality

US116361: Interpret South African legislation and policy affecting municipal financial

management.

6.5 EMPLOYEE WELLNESS PROGRAMME (EAP)

The following EAP Interventions were implemented in Q4:

Stress management session

6.6 PERFORMANCE MANAGEMENT

Quarter 4 appraisals are scheduled for the first month of the new financial year that is,

July 2017. There was 100% compliance during quarter 3 review period

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7. DEPENDENCIES AND CROSS CUTTING ISSUES

There are on-going relationships between the City’s Departments and TEDA.

8. OPERATION CLEAN AUDIT

Table 3: Evidence Evidence for the quarter

submitted with report

(Yes/ No)

Entity evidence files updated,

centralised and verified in the

department (Yes/ No)

If no, indicate

corrective measure

Entity project files for the

quarter compiled, centralised

and verified (Yes/No)

If no indicate corrective

measure

Yes N/A N/A

CLASSIFICATION NUMBER OF FINDINGS REPEAT FINDINGS NO OF FINDINGS

RESOLVED

NO OF FINDINGS

NOT YET RESOLVED

Annexure A: Matters affecting the audit report 1 1 1 0

Annexure B: Other important matters 3 0 2 1

Annexure C: Administrative matters 3 0 3 0

TOTAL 7 1 6 1

Table 4: OPCA controls and interventions Number Finding Recommendations by the

Auditor General

Background Action plan Responsible

person

Due date Progress

ANNEXURE A: MATTERS AFFECTING THE AUDITOR’S REPORT

1.

Expenditure

management –

Failure to prevent the

incurrence of fruitless

expenditure.

Paragraph 20 of the

audit report on

expenditure

management:

Reasonable steps

Management should

implement measures to

avoid recurrence of the

errors made

Consider training officials

involved in the finance

division who work with tax

related matters.

Total fruitless

expenditure: R424,

272.

1. R382, 449 of the

fruitless expenditure

relates to interest

incurred and paid in

the 2015/16 financial

year. This was due to

a Voluntary Disclosure

A forensic

investigation to be

performed on the

fruitless expenditure

to assist in finalising

the corrective

measure i.e.

Recovery/write off.

Staff training by an

accredited training

Chief Financial

Officer Immediate

A forensic

investigation was

concluded by CoT;

and subsequently

presented to the

TEDA Board of

Directors where it

was recommended

that the fruitless

expenditure be

written off in line

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Number Finding Recommendations by the

Auditor General


person

Due date Progress

were not taken to

prevent fruitless and

wasteful expenditure

as required by section

95(d) of the MFMA.

Paragraph 22 of the

audit report on

leadership:

The accounting

officer did not

exercise adequate

oversight over

compliance with laws

and regulations and

the implementation

of adequate internal

controls.

Paragraph 23 of the

audit report on

financial

performance

management:

Management did not

adequately monitor

the department‘s

compliance with laws

and regulations

relating to

expenditure.

Programme on VAT

the entity embarked

on in the 2014/15

financial year.

2. R14, 067 relates to

PAYE understatement

penalty due to the VIP

system not agreeing

with EMP201.

3. R27, 746 relates to

SARS VAT 201

understatement

penalty due to a

previously not

claimed invoice from

the CSIR.

provider on VAT and

PAYE related

matters.

Appointment of the

vacant senior

manager finance

position will also assist

with reviews of

expenditures.

with the

recommendations

from the

investigation report.

A municipal budget

and reporting

regulations 75 (2)

(a) certificate has

been forwarded to

the Executive Mayor

for noting.

Staff is registered

with UNISA for a VAT

course.

Senior Manager

position was

advertised and

shortlisted, but a

moratorium was

imposed which has

delayed the

appointment.

ANNEXURE B: OTHER IMPORTANT MATTERS

2.

Taxation - Wear &

Tear calculated using

the incorrect rates

Management should

perform adequate

independent reviews of

the financial statements

and ensure that all

transaction have been

recorded in accordance

to the relevant laws and

regulations.

This is an isolated error

that was picked up in

the tax asset register

whereby an incorrect

wear and tear write

off rate for lease hold

improvements, had

been inserted, thus

understating the wear

and tear allowance

No further action

required as this was

an isolated error that

was corrected.

Chief Financial

Officer

Immediate No further action


corrected.

148

15 | P a g e


Auditor General


person

Due date Progress

Prepare journals to

correct the misstatements

in the financial

statements.

claimed in the tax

calculation. This error

was corrected in the

final AFS.

3.

Taxation - Incorrect

prior year adjustment

disclosure

Management should

perform adequate

independent reviews of

the financial

statements so as

to ensure that all

transactions are

accurately recorded.

This was also an

isolated error where a

prior year adjustment

journal was reversed

in error whilst fixing the

deferred tax. This was

also adjusted.

No further action


an isolated error that

was corrected.

Chief Financial

Officer Immediate

No further action


corrected.

4.

Security

management

Management can

remediate a number of

patch related issues by

phasing out legacy

systems, and procuring

new hardware and

software in critical areas.

In addition, expired

software and hardware

licenses as well as vendor

specific contracts should

be renewed to mitigate

repeated issues

This finding emanates

from the fact that

TEDA’s IT platform is

hosted by the COT,

therefore the finding

was raised at the COT

and thus copied to

TEDA’s management

report. This finding has

a dependency on the

COT’s action plan.

Patching procedure

will be reviewed to

include application

owners.

Ongoing monitoring

of patching

schedule on a

monthly basis.

Consultation with the

various business

application owners is

underway to address

the storage and

backup

requirements.

To acquire the Forti-

Analyzer or similar

tool.

Pending budget

availability.

The Disaster

Recovery Plan will be

reviewed to include

the City’s firewalls.

Corporate

Services

By end of

Financial Year

30 June 2017

TEDA is currently

using CoT’s ICT

infrastructure

therefore, all IT

security

management is

done by CoT and

there is

memorandum of

understanding

between TEDA and

COT.

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16 | P a g e


Auditor General


person

Due date Progress

ANNEXURE C: ADMINISTRATIVE MATTERS

5. AOPO- Objective

planned not included

in the APR

Management should

report all planned

objectives in the annual

report, reasons for any

variances or non-

achievements should be

disclosed in the annual

report.

This finding was as a

result of the non-

inclusion of Objective

5 in the APR due to

the fact that this

objective had no KPI’s

in the period under

audit as per the

approved business

plan, the auditors

insisted that this be

included in the APR,

this was included in

the APR.

Therefore there will

be no action on this

item as it is already

fixed.

Executive:

Strategy and

Performance

Monitoring



corrected during

the audit.

6. IT – User access

process and

procedure in draft

format

The Accounting Officer

should approve the

procedure document to

ensure that it is a final

document that entity

may apply.

This procedure

document was

approved after 30

June 2016. This was

due to the fact that

the entity was still

awaiting the

procurement and

implementation of

SAP as a financial

system.

There is no further

action required as

the document has

been approved.

Corporate

Services


required as the

document was

approved.

7. SCM - VAT vendor

suppliers listed as non-

VAT vendors

Senior Management

personnel should review

supplier records to ensure

that correct information

has been kept

This was an isolated

administrative error in

the SCM vendor

database with 200

vendors, this was the

only one that was

incorrectly classified

as a non-vendor, the

vat treatment in the

accounts was correct.

This was also fixed in

the VAT vendor status

column. No further

action required.

Senior Manager:

SCM


required as the error

was fixed.

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17 | P a g e

9 CONCLUSION AND RECOMMENDATIONS

In the quarter under review, TEDA achieved all KPIs and their related targets were met.

The City of Tshwane embarked on a review on the future of its entities in the current financial year including TEDA, this review was concluded this

quarter. The City resolved not disestablish TEDA. However, sufficient measures will be put in place to monitor and evaluate the operations of the

entities over the next twelve months, after which a re-evaluation of the mandate will be considered.

The Entity also held it’s AGM on the 30 June 2017, whereby 2 non-executive directors were retired.

The business plan for 2017/18 was approved by the COT council in the quarter under review.

Recommendations

The entity continue to operate without an operating system pending the City’s implementation plan to roll out MSCOA compliant SAP to entities.

This means that TEDA is not MSCOA compliant as at 30 June 2017. TEDA will continue to engage COT on prioritizing implementation of MSCOA

compliant SAP.

The review of the entity’s service delivery agreement as well as its mandate in the next financial year, would ensure that the issues surrounding

the entity’s direction and financial sustainability are resolved.

ANNEXURE A: EXTRACT OF ENTITY’S BUSINESS PLAN REPORT FROM QPR

151

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ANNEXURE B: STATEMENT OF FINANCIAL POSITION AND PERFORMANCE

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Tshwane Economic Development Agency - Table F2 Monthly Budget Statement - Financial Performance (revenue and expenditure) - M12 June

2015/16 Current Year 2016/17

Audited

Outcome

Original

Budget

Adjusted

Budget

Monthly

actual

YearTD

actual

YearTD

budget

YTD

variance

YTD

variance

Full Year

Forecast

R thousands %

Revenue By Source

Property rates – – – – – – – –

Property rates - penalties & collection charges – – – – – – – –

Serv ice charges - electricity rev enue – – – – – – – –

Serv ice charges - w ater rev enue – – – – – – – –

Serv ice charges - sanitation rev enue – – – – – – – –

Serv ice charges - refuse rev enue – – – – – – – –

Serv ice charges - other – – – – – – – –

Rental of facilities and equipment – – – – – – – –

Interest earned - ex ternal inv estments 518 194 194 40 412 194 218 112.7% 194

Interest earned - outstanding debtors – – – – – – – –

Div idends receiv ed – – – – – – – –

Fines – – – – – – – –

Licences and permits – – – – – – – –

Agency serv ices – 9,299 – – – – – –

Transfers recognised - operational 56,008 54,150 58,178 – 58,166 58,178 (12) 0.0% 58,178

Other rev enue 3,997 988 2,389 – 2,444 2,389 55 2.3% 2,389

Gains on disposal of PPE – – – – – – – –

Total Revenue (excluding capital transfers and

contributions) 60,523 64,631 60,761 40 61,022 60,761 261 0.4% 60,761

Expenditure By Type

Employ ee related costs 29,103 32,430 32,376 2,248 30,568 32,376 (1,808) -5.6% 32,376

Remuneration of Directors 1,786 1,989 1,800 96 1,114 1,800 (686) -38.1% 1,800

Debt impairment 18 – – – – – – –

Depreciation & asset impairment – – 2,000 127 2,151 2,000 151 7.5% 2,000

Finance charges 50 60 55 5 58 55 3 4.7% 55

Bulk purchases – – – – – – – –

Other materials – – – – – – – –

Contracted serv ices 1,053 1,500 374 60 561 374 187 50.1% 374

Transfers and grants – – – – – – – –

Other ex penditure 28,838 28,152 23,616 2,437 16,833 23,616 (6,783) -28.7% 23,616

Loss on disposal of PPE 15 – 40 – – 40 (40) -100.0% 40

Total Expenditure 60,864 64,131 60,261 4,973 51,284 60,261 (8,977) -14.9% 60,261

Surplus/(Deficit) (341) 500 500 (4,933) 9,738 500 9,238 1847.6% 500

Transfers recognised - capital – – – – – 3,918 (3,918) -100.0% –

Contributions recognised - capital – – – – – – – –

Contributed assets – – – – – – – –

Surplus/(Deficit) before taxation (341) 500 500 (4,933) 9,738 4,418 5,320 120.4% 500

Tax ation 23 500 500 342 492 500,000.00 (8) -1.6% 500

Surplus/(Deficit) for the year (364) – – (5,275) 9,246 3,918 5,328 –

Description

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Tshwane Economic Development Agency - Table F5 Monthly Budget Statement - Cash Flows - M12 June

2015/16 Current Year 2016/17

Audited

Outcome

Original

Budget

Adjusted

Budget

Monthly

actual

YearTD

actual

YearTD

budget

YTD

variance

YTD

variance

Full Year

Forecast

R thousands %

CASH FLOW FROM OPERATING ACTIVITIES

Receipts

Property rates, penalties & collection charges – – – – – – – –

Serv ice charges – – – – – – – –

Other rev enue 3,652 3,183 2,389 40 1,722 2,389 (667) -27.9% 2,389

Gov ernment - operating 54,150 54,150 58,178 – 57,972 58,178 (206) -0.4% 58,178

Gov ernment - capital – – – – – – – –

Interest 508 194 194 – 303 194 109 56.2% 194

Div idends – – – – – – – –

Payments

Suppliers and employ ees (61,369) (50,237) (55,246) (8,463) (56,860) (55,246) (1,614) 2.9% (55,246)

Finance charges (49) (77) (55) (5) (62) (55) (7) 13.6% (55)

Div idends paid – – – – – – – –

Transfers and Grants – – – – – – – –

NET CASH FROM/(USED) OPERATING ACTIVITIES (3,108) 7,213 5,460 (8,427) 3,074 5,460 858 15.7% 5,460

CASH FLOWS FROM INVESTING ACTIVITIES

Receipts

Proceeds on disposal of PPE – – – – – – – –

Decrease (Increase) in non-current debtors – – – – – – – –

Decrease (increase) other non-current receiv ables – – – – – – – –

Decrease (increase) in non-current inv estments – – – – – – – –

Payments

Capital assets (477) (682) (1,944) (191) (1,984) (1,944) (40) 2.1% (1,944)

NET CASH FROM/(USED) INVESTING ACTIVITIES (477) (682) (1,944) (191) (1,984) (1,944) 40 -2.1% (1,944)

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts

Short term loans – – – – – – – –

Borrow ing long term/refinancing – – – – – – – –

Increase (decrease) in consumer deposits – – – – – – – –

Payments

Repay ment of borrow ing – – – – – – – –

NET CASH FROM/(USED) FINANCING ACTIVITIES – – – – – – – –

NET INCREASE/ (DECREASE) IN CASH HELD (3,585) 6,531 3,517 (8,618) 1,091 3,517 (2,426) -69.0% 3,517

Cash/cash equiv alents at the y ear begin: 9,902 4,167 4,167 6,316 6,316 4,167 4,167

Cash/cash equiv alents at the y ear end: 6,317 10,698 7,684 (2,302) 7,407 7,684 (277) -3.6% 7,684

Description

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21 | P a g e

ANNEXURE C: RISK REGISTER

Strategic Risk Root Cause IR RR Management Action Plan Action Owner Time Frame Q4 Progress Evidence

1. ailure to attract investments

1. Changes in government policies (i.e. relating to macroeconomic policies, tax regime )

2. Unfavourable Global Economic climate

3. Inadequate resources necessary for investment attraction

Cri

tica

l

Med

ium

1. To increase marketing of CoT investment opportunities e.g. projects and incentives from the policy framework

2.To undertake both inbound and outbound trade missions to attract investments and identifying foreign markets

3.To target investors for particular sectors (investor targeting) using both country and company analyses and investment seminar

4. Increased lead generation, facilitation and follow-up, company visitations as part of investment expansion and after care.

5. Information sharing on investing in CoT (assistance with business permits, access to opportunities, skills availability, etc.)

Executive Trade and

Investment

30 June 2017

Participating at various trade shows to promote opportunities in the Aerospace, Automotive, Agricultural Sector.Working with South African Netherlands Chamber to host Dutch companies on 30 March 2017.

Staged an exhibition at the Inagural Tshwane Economic Summit held in February 2017.

Produced publication in support of the Aerospace Sector and other sector including agro processing. These publication were distributed at various trade shows and exhibitions TEDA participated in. These include the Paris Airshow and Netherlands Outbound mission in June.

Undertook a trade mission to Cameroon with Wesgro. Three companies from Tshwane assisted.

Targeting investors in the logistics and Renewable energy by hosting Indonesian delegation and facilitating investment in the renewable energy. TEDA is working to convert these leads.

Have facilitated a discussion between an industrial part and a Dutch Company planning to establish a Malt House in South Africa. Awaiting feedback from the Dutch Company.

Report Pictures, Email

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22 | P a g e


2. Inability to implement the financial sustainability model

1. Non fulfilment of SDA undertakings

2. Failure to generate alternative/ own revenue streams

Cri

tica

l

Hig

h

1. Review of the SDA towards securing CoT support to TEDA

2. Continued mobilisation of funding from external partners

Executive PPM and Asset Management

30 June 2017 Financial sustainability model recognizes other revenue streams such management fees of City of Tshwane Capital Projects as well as property management. These revenue streams have dependencies from the City of Tshwane to realise its obligation as stated in the SDA. No progress has been made regarding the allocation of project or assets from City to TEDA.

Strategic Objective – To identify, design, develop and manage projects with strategic economic and social benefits for the greater Tshwane community

3. Delays in implementation of projects

1. Lack of project oversight and monitoring

2. Failure to adequately manage risks related to interdependencies

Cri

tica

l

LO

W

1. Establishment of project oversight committees to monitor progress on projects in which TEDA is involved

2. Development of SLAs and Project Charters for business plan linked projects

Executive PPM 1. 30 June 2017 All projects are monitored and formal committees have been established and operating. The Tshwane Agro-processing project uses a Project Iniation Document (PID) entered into by GIFA, TEDA and DEC. The Tshwane Freight Terminal and Logistics Hub Project also has a monitoring committee (Technical Commiittee) which operates as a monitoring and oversight structure.

All controls and monitoring mechanism are maintained.

Project charter for the Groenkloof Nature Reserve Chalet project is used as an initial document defining the project.

PID Attached

ToR for Technical Committee acttached

Project Charter attached

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23 | P a g e


Strategic Objective – To promote Tshwane as a viable investment destination through the implementation of an integrated Marketing and Communication.

4. Inadequate marketing of the CoT as an investment destination.

1. Limited marketing and communication strategies

2. Limited investment opportunities available for marketing.

Cri

tica

l

ME

DIU

M

1. To implement various marketing and communications strategies (digital marketing, regular postings on the web etc.)

2. Development of biannual investment bulletins

Executive : marketing and Comms

Executive : Trade & Investment

30 June 2017 Participating at various trade shows to promote opportunities in the Aerospace, Automotive, Agricultural Sector.Working with South African Netherlands Chamber to host Dutch companies on 30 March 2017.

Staged an exhibition at the Inagural Tshwane Economic Summit held in February 2017.

Produced and distributed brochures on various sectors of the economy during exhibitions and trade shows.

Reports, copies of publications, emails, pictures.

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24 | P a g e


Strategic Objective – Promote To establish and build TEDA as a strong and effective organisation in the context of good governance best practice

5. Inadequate compliance with governance framework

1. Lack of understanding of full scope of governance.

2. Limited compliance with governance protocols

HIG

H

LO

W

1. Monitoring of OPCA action plan to address identified weaknesses.

2. Compilation of a full list of compliance indicators, norms and standards against all applicable legislative and regulatory framework.

Company Secretary

Office of the CEO

30 June 2017

OPCA resolutions are monitored to ensure compliance.

Legislative and Corporate Governance Checklist is compiled and submitted to FinRisk and Board quarterly.

Approved Q3 and Q4 Legislative and Corporate Governance Checklist

Revised Q4 Legislative and Corporate Governance Checklist. To be presented at the next FinRisk and Board meetings.

OPCA Attendance registers.

Attendance Register for King IV training

Revised Q4 Legislative and Corporate Governance Checklist.

158

INITIATOR: Fikile Rasmeni (1182)

GROUP LEGAL & SECRETARIAT SERVICES DEPARTMENT 4TH QUARTER ASSESSMENT REPORT: HOUSING COMPANY TSHWANE (HCT)

1. PURPOSE

The purpose of this report is to present the assessment of Q4 Quarterlyperformance Report of the Housing Company Tshwane (HCT) for the periodApril to June 2017.

2. STRATEGIC OBJECTIVES

2.1 PROVIDE SUSTAINABLE SERVICE INFRASTRUCTURE AND HUMANSETTLEMENT MANAGEMENT.

2.2 PROMOTE GOOD GOVERNANCE AND ACTIVE CITIZENRY.

3. BACKGROUND

The Shareholder Operations Unit is concerned with reviewing, monitoring and“overseeing” the affairs, practices, activities, behaviour and conduct of municipal-owned entities (MOEs) to ensure the City of Tshwane that the business of MOEs isbeing conducted in a manner expected in accordance with commercial legislativeand other prescribed or agreed conventions.

The unit is poised to assist the institution and its MOEs to comply with applicablelegislation by providing regular advice and reports on compliance and recommendingremedial action where required. The Division regulates the functions of MOEs andco-ordinates these with prevailing political imperatives, whilst ensuring alignment withdepartmental SDBIPs.

In terms of Section 87 of the MFMA, municipal entities are required to submit to theparent municipality on a quarterly basis against the approved budget as well as theapproved business plan. This report seeks to provide assessment of the submitted3rd quarter report by the entity and also provide recommendations based on theassessment.

The Performance Report for Quarter 3 of HCT is attached hereto as Annexure A

4. DISCUSSION

OVERALL BUSINESS PERFORMANCE

During the quarter under review HCT has appointed the contractor for the construction of Townland Social Housing and forty nine units were completed; thirty five percent of reticulation services has been completed for the Chantelle Social Housing development, and ninety percent of Timberland Social Housing detailed design has

ANNEXURE D 159

also been completed. However, the entity has challenges from Timberland Social Housing as there were objections from the community, there are delays in Chantelle as the occupant is reluctant to move from the building. There has also been challenges at Townlands as a result of contractor poor performance, however, the entity is instituting penalties in this regard. PERFORMANCE AGAINST THE SDBIP AND THE SCORECARD

In terms of the entity’s performance scorecard, the entity has 15 key performance indicators for the current financial year. Twelve targets are relevant for Quarter 3 for the quarter. Seven targets have been achieved and exceeded and five targets have not been achieved.

Summary of Business Plan Targets

Q4 Annual Target 16 17 Achieved (Unaudited results)

11 11

Not Achieved 5 5

Below is the summary of targets that have not been achieved for the quarter under review: 100 Units Completed in Townlands: not met due to contractor non-performance,

as a result penalties to be instituted against the contractor as from July 2017; the nominated sub-contractor to be appointed to expedite progress;

Detailed Designs Completed in Timberland: not achieved due to community objections, entity awaiting objection hearing date;

Bulk infrastructure Completed in Sunnyside: not met due to as result of the BAC recommendation that the tender be re-advertised. Entity had indicated in quarter 3 that it would be moved to 2017/18 financial year, as per the revised business plan;

Internal Reticulation Completed in Chantelle X39: not met due to reluctance of the building occupant to vacate, entity is currently seeking legal advice for eviction;

Management Budget Process of the Entity in Accordance with Regulatory Frameworks: not met due to supply chain tender process delays.

FINANCIAL PERFORMANCE

REVENUE Total revenue for the 4th quarter of this financial year was R36, 4 million against budgeted revenue of R36, 8 million which is below the budgeted by R400 000. Rental revenue for the quarter was R5, 4 million which is more than the budgeted rental

160

revenue of R5, 2 million, which exceeded the budgeted by R200 000. The increase in the interest earned from outstanding debtors of R136 000 against the budgeted amount of R76 000. Other revenue has increased by R127 000 this is as a result of the defaulting tenants. The Grant transferred to the entity amounting to R30, 6 million was R800 000 below the budgeted amount of R31, 4 million.

EXPENDITURE The total expenditure for the quarter is R24, 7 million, which is below the budgeted amount of R27, 6 million resulting in a shortfall of R2, 9 million. Contracted services of R8, 8 million is above the budgeted amount of R3 million resulting in an excess of R5, 8 million owing to the delays in the procurement processes (pre-construction phase) of Townlands. Employee related cost is R8 million, which is below budgeted amount of R12 million resulting in a shortfall of R4 million. The remuneration of directors of is R1, 3 million is below the budgeted amount of R1, 4 million resulting in a shortfall of R100 000. This is due to the decrease in the number of board meetings. Other expenditure has a short fall of R4, 5 million against the budgeted amount of R9, 8 million, this is mainly due to cancellation of tenders, which were not responsive in terms of pricing levels. There has been an increase in the expenditure of contracted services, is mainly due to an increase in the scope of work at Townlands wherein Social Housing units were increased from 475 to 1,200 a deviation report has been submitted to the board for approval. SOLVENCY Total assets for the quarter under review was recorded at R152 million and the total liabilities is R79, 8 million and a solvency ratio of 1.906:1 against the standard norm of 2:1. The entity is able to meet is long-term liabilities as its total assets exceeds its total liabilities by R72, 2 million. LIQUIDITY The entity’s current assets for the quarter under review are R92, 8 and the current liabilities are R78, 2 resulting in the current ratio of 1.186:1 against the standard norm of 1:1. HCT is solvent and is able to meet its short-term liabilities as its current assets exceeds its current liabilities by R14, 6 million. GOVERNANCE RELATED MATTERS There are no matters that require Shareholder interventions as the board of HCT is stable. The board held 2 meetings during the quarter under review Council of the City of Tshwane re-appointed the current board for a period of three months, that is from 01 July to 30 September 2017, with the exception of two members which were retired as at 30 June 2017, namely Ms D. Masilela and Advocate E.M. Mphahlele. The entity’s Annual General Meeting (AGM) will be held on the 28th July 2017.

The entity has 2 Auditor General Findings that are in progress to be addressed. HCT should resolve these finding before the submission of 2016/17 Annual Performance Report to AG by 31 August 2017 to avoid repeat finding in the next financial year.

161

ICT GOVERNANCE Entity has not reported ICT challenges, however, the City has to assist the entity in ensuring that it is mSCOA compliant. HUMAN RESOURCE GOVERNANCE

The position of the Chief Executive Officer (CEO), is vacant due to his resignation in February 2017; The Acting CEO has resigned 30 June 2017 due workload of Acting

Group Head: Human Settlements and CEO: HCT. However, the

The City has seconded a person to HCT to assist in the Supply Chain Management area as the position of Senior Supply Chain Manager is vacant. Improvement in the SCM function is expected in the coming quarters as there is a resource. RISK GOVERNANCE

Structure & Progress this Quarter

Strategic Risk Register & Reporting

Governance Risk Gab

The Company’s Board and the Sub-Committees are responsible for the overall risk management.

Risks identified are escalated to the Board.

Vacant key critical positions, i.e. CEO and CFO, which may have impact in the entity’s stability.

Poor contract management exists within the entity.

Supply Management related risks that have an impact in the implementation of projects as some KPIs had to be moved to the 2017/18 business plan.

Recommendation:

Entity should ensure that there is success planning in place to avoid vacant critical positions for a long time.

Adequate contract management could not be overemphasised in that it has negative

impact on the service delivery of social housing, which could result in unnecessary service delivery protests.

CONCLUSION

The purpose of this report was to present a quarterly review of Housing Company

162

Tshwane (HCT) for the 4th quarter of the 2016/17 financial year i.e. 01 April 2017 to 30 June 2017. The report assessed the matters pertaining to (i) performance; (ii) financials; and (iii) governance related aspects for the period under review.

RECOMMENDATION

1. That cognisance be taken of the content of the review of HCT Q4.

2. Filling of key and critical positions, i.e. CEO, CFO and Senior Supply Chain Manager to ensure stability at HCT as they have impact on the smooth running of the entity and service delivery.

163

Department

Project Name

Project Number

Project objective

Region

Work done in April 2017

Work done in May 2017

Adjusted Milestone Jun 2017

Work done in June 2017

Reason not completed/ over achieved

Mitigation plan

Annual Delivery Target



Project Future plans for next MTREF (Projects not achieved 2016-17)

Adjusted Budget

Reasons Annual Target not achieved

City Manager

Insurance replacements (CTMM Contribution)

9.712449.1.001


City Wide

Capital Assets replaced


Replacement of Capital Assets Q4: Replacement of capital assets for which the claims were settled.


Procurement of an asset stolen / damaged is the responsibility of the Department, where the loss occurred, after the claim was settled. Departments could not Procure using Insurance Projects as they were not linked. Departmental Creators and Approvers had first to be linked to Insuranc

Reinstatement be regarded as emergency replacement. Budget be made available in order for service delivery not to be hampered. Relevant department proceed with the procurement process and the award of the tender in the financial year in


47.63% (Actuals + Commitments included in calculation)

No Reinstatement be regarded as emergency replacement. Budget be made available in order for service delivery not to be hampered. Relevant department proceed with the procurement process and the award of the tender in the financial year in

5,000,000

Procurement of an asset stolen / damaged is the responsibility of the Department, where the loss occurred, after the claim was settled. Departments could not Procure using Insurance

ANNEXURE E 164

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


e Projects by E-Procurement Developers. Procurement further halted by all Project Managers except SED's, ED's and RED's being removed as Approvers. Removal was reversed as it was only applicable to Cost Centres and not Projects (WBS)

which the claim was settled.

which the claim was settled.

Projects as they were not linked.

165

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


City Manager

Insurance replacements

9.712450.1.001


City Wide

Vehicles replaced

None Replacement of Vehicles Q4: Replacement of Vehicles, for claims approved, by Corporate and Shared Services Department after the Tender has been awarded.

Vehicles replaced

Procurement of vehicles stollen / written-off is the responsibility of Corporate and Shared Serices Department (Coroprate Fleet). Departments could not Procure using Insurance Projects as they were not linked. Departmental Creators and Approvers had first to be linked to Insurance Projects

Reinstatement be regarded as emergency replacements.Budget be made available in order for service delivery not to be hampered. Corporate and Shared Services Department must proceed with the procurement process after the tender


83, 34% (Actuals + Commitments included in calculation)

No Reinstatement be regarded as emergency replacements.Budget be made available in order for service delivery not to be hampered. Corporate and Shared Services Department must proceed with the procurement process after the tender

5,000,000.00

Procurement of vehicles stollen / written-off is the responsibility of Corporate and Shared Serices Department (Coroprate Fleet). Departments could not Procure using Insurance Proje

166

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


by E-Procurement Developers.Procurement further halted by all Project Managers except SED's, ED's and RED's being removed as Approvers. Removal was reversed as it was only applicable to Cost Centres and not Projects (WBS)

was awarded in the same financial year.

was awarded in the same financial year.

cts as they were not linked

City Manager

Brazzaville Walkways

9.712533.1.001

Construction of sidewalks

Region 3

100% kerbing / 80% paving


Q4: Completion / Project closeout. 5Km 3meter wide walkways


None

None Completion of sidewalks


Yes

None 24,250,000.00

Target achieved

167

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


City Manager

Waltloo Walkways

9.712533.1.001

Construction of sidewalks

Region 6



Q4 Completion / Project closeout. 6Km, 3 meter wide walkways


None

None Construction of sidewalks completed


Yes

None 24,250,000.00

Target achieved


Multipurpose Development Centre next to Phomolong Clinic

9.712681.1.015

To construct a development centre in each region, in compliance with relevant legislation

Region 3


Tender cancelled. Implementation of project put on hold due to budget limitations.

Q4 Construction: Complete Earthworks, Framework, Reinforcement, Precast Concrete for Administration Building, Early Childhood Development Centre, Adult Community Centre, Hall, Guard Hut, Standby Generator. Start with masonry.


• Funds allocated not spent

• Advised the Community and Social Development Department to make means to spend the allocation.

Construction: Complete Earthworks, Framework, Reinforcement, Precast Concrete for Administration Building, Early Childhood Development Centre, Adult Community Centre, Hall, Guard Hut,

Project on hold

Yes

Advised the Community and Social Development Department to make means to spend the allocation.

7,700,000.00


168

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


Standby Generator. Start with masonry.


Social Development centre in Hammanskraal

9.712948.1.017

Sustainable Communities with Clean, Healthy and Safe Environmental and Integrated Social Services

Region 2

Overall construction progress - 43%, External works -29%, Boundary wall - 5% and installation of electric conduits on the refuse yard.

Overall construction progress - 43%, External works -29%, Boundary wall - 5% and installation of electric conduits on the refuse yard.

Q4 Construction: Complete Roof covering and ceiling for Administration Building, Early Childhood Development Centre, Adult Community Centre, Guard Hut, Standby Generator . Start with partitions.

Superstructure Brickwork -100%, external works 25%, Plumbing and Electrical 80%

Budget exhausted and unable to service current claims

CoT wrote to Provincial Social Development to address funding shortfall

Construction: Roof covering and ceiling for Administration Building, Early Childhood Development Centre, Adult Community Centre, Hall, Guard Hut, Standby Generator completed. In progres

Not achieved.

No CoT wrote to Provincial Social Development to address funding shortfall

14,000,000.00

Budget exhuasted to complete planned scope. Letter sent to Provincial Social Development to address funding shortfall

169

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


s partitions.


Social Development center in Winterveldt

9.712954.1.017

To have a development centre

Region 1

Superstructure Brickwork -98%, Plastering -89%, Plumbing 2nd Fix - 88%, Electrical and Mechanical 2nd Fix -86%, Trusses - 76%, Roof Covering - 76%, Plasteri

Superstructure Brickwork -98%, Plastering -89%, Plumbing 2nd Fix - 88%, Electrical and Mechanical 2nd Fix -86%, Trusses - 76%, Roof Covering - 76%, Plastering - 89% and Ceiling - 5%

Q4 Construction: Complete Roof covering and ceiling for Administration Building, Early Childhood Development Centre, Adult Community Centre, Guard Hut, Standby Generator . Start with partitions.

Superstructure Brickwork -98%, Plastering -89%, Plumbing 2nd Fix - 88%, Electrical and Mechanical 2nd Fix -86%, Trusses - 76%, Roof Covering - 76%, Plastering - 89% and Ceiling - 5%



Construction: Roof covering and ceiling for Administration Building, Early Childhood Development Centre, Adult Community Centre, Hall, Guard Hut, Standby Generator

Not achieved.


14,000,000.00


170

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


ng - 89% and Ceiling - 5%

completed. In progress partitions.


Social Development centre in Mabopane

9.712955.1.017

To have a development centre

Region 1

Kerbing to parking – 95%, Brickwork to foundations – 100%, Preparations for floors and concrete to floors – 95%, Brickworks to walls – 80%, Parameter fence to ERF 70%, Paving to walkways -

Kerbing to parking – 95%, Brickwork to foundations – 100% , Preparations for floors and concrete to floors – 95%, Brickworks to walls – 80%, Parameter fence to ERF 70%, Paving to walkways - 80% and Paving to Access Road Parking-85%

Q4Construction: Complete Roof covering and ceiling for Administration Building, Early Childhood Development Centre, Adult Community Centre, Guard Hut, Standby Generator . Start with partitions.

Foundation cast Surface bed cast, Brick work to foundation 100% , Brickworks to main building 85 %,Parameter fence 95%,Paving to parking and access road 95%, Access road to institution 30%



Construction: Roof covering and ceiling for Administration Building, Early Childhood Development Centre, Adult Community Centre, Hall, Guard Hut, Standby Generator completed. In progress Not

achieved.


13,000,000.00


171

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


80% and Paving to Access Road Parking-85%

partitions.


Olievenhoutbosch multi-purpose sport facility

9.711432.2.015

Completion of the existing multi-purpose sport facility

Region 4

Project completed.

Project completed.

Q4: Project complete

Project completed.

Project completed.

None required.

Completion of the existing multi-purpose sport facility

Project completed.

Yes

CAPS - requested funds for future phases.

14,225,367.00

Target achieved


Solomon Mahlangu Freedom Square - Cultural Centre

9.711439.1.015

Establishment of a heritage and cultural facility - heritage square

Region 6

Project previously completed. Submission of consultant fees.


Q4 Project completed. Final payment to consultants


N/a None required.

Project completion


Yes


1,589,837.00

Target achieved

172

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget



Lotus Gardens multi-purpose sport facility

9.712260.1.015

Construction of multi-purpose sport facility

Region 3

General progress at 60%. Re-furbishment of ablutions in process. Upgrading of 2 practise fields commenced with re-grassing and upgrade of irrigation system in process. Completion projected end March 2017.

Progress at 75%. Challenges experienced on the capacity of the contractor.


Progress at 95%. Challenges experienced on the capacity of the contractor. Practical completion by mid July 2017.

Project completion by end June 2017.

None required.

Completion of the existing multi-purpose sport facility. (Ablutions and spectator stands)

Project completion by mid July 2017.

Yes


8,000,000.00

Target achieved

173

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget



Capital Moveable's

9.712773.1.013

Purchasing of library books, furniture and IT equipment

Region 3

New book selection completed. Corporate tender for ITC equipment in place. Library furniture tender approved and appointment letter awaited.

New book selection completed. Corporate tender for ITC equipment in place. Library furniture tender approved and appointment letter awaited.

Q4 Procurement of library books, IT equipment and furniture,

Delivery of books, purchasing of IT equipment and library furniture completed.

N/a Request roll over of grant funds remaining from VAT rebaits.

Procurement of library books, IT equipment and furniture,

Annual target achieved.

Yes

Ongoing annual library grant.

6,978,229.00

Target achieved


Upgrading of Zithobeni Sport Stadium

9.712883.1.015

Upgrading of existing Sport Stadiums

Region 7

Project previously completed. Submission of consultant fees.


Q4 Project completed. Retention payment to contractor and consultant fees


N/a None required.

Project completion


Yes

Not required.

1,491,516.00

Target achieved

174

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget



Greening of Sports Fields

9.712941.1.015

Greening of Sports fields

City Wide

Project completed.

Project completed.

Q4 Construction of clubhouse and change rooms - roofing. Completion of grass pitch.

Project completed.

N/a None required.

Ground works, fencing and construction of clubhouse and change rooms - roofing Annual

target achieved.

Yes

Ongoing Greening Programme.

11,086,363.00

Target achieved


New Ga-Rankuwa library

9.712910.1.015

Increase access to libraries

Region 1

General progress at 65%. Excavations for foundations done. Platform completed. Sub-base for parking area completed. Water connec

Progress at 80%. Roof completed . Curently busy with finishes. Anticipated date of opening targeted for the Mid July 2017

Q4 Project completed

Progress at 90%. Roof completed . Curently busy with finishes. Anticipated date of opening targeted for the Mid July 2017

Slow progress by contractor due to late payments and community uproars.

Practical completion of project by end June 2017.

Establishment of a new community library


Yes

Not required.

18,670,351.00

Target achieved

175

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


tion in place. Brickwork completed up to roof level. Commence with roof structure. Completion end June 2016.


Upgrading of Caledonian Stadium

9.712915.1.015

Upgrading of the Caledonian Stadium to proper PSL standards and preservation of heritage aspects.

Region 3

Concept development completed. Survying and assesment of site done. High level estimate done. Detail design

Concept development completed. Detail design completed. Draft tender (BoQ) at 95%.

Q4New project plan to be developed. Details will be made available as soon as it is completed and approved.

Concept development completed. Detail design completed. Draft tender (BoQ) at 95%.

Detail designs completed and held up completion of tender document.

All designs completed. Submitted to Quantity Surveyor for final costing and bill of quantities.

Upgrading of the Caledonian Stadium: refurbishment of existing clubhouse, change rooms, pavilions and parking areas.


Yes

Yes. MTREF budget alocation for 2017-18.

21,000,000.00

Project scope revised and annual target not revised. The 2016-17 achieved scop

176

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


completed. Draft tender in process.

New skating park. Preservation of heritage structures and new museum.

e is concept designs.


Upgrade Refilwe Stadium

9.712916.1.015

Upgrading of existing Sport Stadiums

Region 5

Previous appointment cancelled and new tender compiled for advertising. Appointment of new contractor delayed.

Previous appointment cancelled. Extention of appointment of consultants was submitted to EAC and report refered back to provide additional information.

Q4 Excavations and foundations for main pavilion.

Previous appointment cancelled. Extention of appointment of consultants was submitted to EAC and report refered back to provide additional information.

Existing consultant team appointment to be extended and EAC approval required.

Sumbission of report to the next EAC meeting.

Upgrading of existing Sport Stadium

Not achieved.

No Yes. MTREF budget alocation for 2017-18.

745,615.00

Previous tender of contractor cancelled and existing consultant team appointment to be extended and EAC approval required.

177

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget



Cullinan Library Park

9.712936.1.015

Construction of library park with additional indoor and outdoor sport facilities

Region 5

Project completed. Installation of IT connection.

Project completed. Commenced with IT connectivity.

Q4 Project completed. Final payment to contractor

Project completed. IT connection in process.

N/a None required.

Project completion


Yes

Not required.

2,190,951.00

Target achieved

Community Safety

Renovation & Upgrading Of Facilities

9.711455.1.015

With this project the upgrading and renovation will bring the facilities to a standard that will be low in maintenance cost and better working conditions for all staff

Region 2

Board quote Q77-2016/17 for standby generator evaluated and awarded. Purchase orders processed for additional aircons. Board quote Q06-2016/1

Standby generator commissioned at Silvertone Station and not Rayton Station. The standby generator at Silverton broke down and could not be repaired and had to be replaced.

Q4 Payment of contractor for services rendered.

Additional aircon installations completed

None None With this project the upgrading and renovation will bring the facilities to a standard that will be low in maintenance cost and better working conditions for all staff

Annual project milestone reached. Due to unforeseen circumstances some re-prioritization had to be implemented to accommodate additional needs.

Yes

Project achieved

6,000,000.00

Target achieved

178

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


7 evaluated and awarded.

Community Safety

Emergency Services Tools and Equipment

9.712587.1.015

Obtain tools and equipment needed for daily operations. To ensure good governance. Financial management to ensure financial viability.

Region 3

Purchase order processed for three TETRA mobile radios. Purchase order processed for twelve clusters at Pieter Delport Control room.

Service provider Installing consoles at Pieter Delport Centre.

Q4 Delivery and payment of goods received.

Pieter Delport control room console installations completed

None None Obtain tools and equipment needed for daily operations. To ensure good governance. Financial management to ensure financial viability.

Annual milestone target reached.

Yes

Project achieved

5,000,000.00

Target achieved

Community Safety

Sub-project: Fire-arms

9.712500.1.015

Procurement of Metro Police equipment to capacitate Metro Police officers

Region 3

Procurement of equipment as identified during Strategic

Procurement of equipment as identified during Strategic session See

Q4 Project complete for 2016/17 Financial Year

Procurement of equipment as identified during Strategic session See

Communication from Nontando Qomoyi from the office of the CFO dated

None Procurement of an estimated 2000 x 9mm pistols and

Procurement of 1250 X 9mm pistols. 10 X Speed Law Enforcement

YES

Procurement of Policing equipment as identified during the strategi

30,000,000.00

Target achieved

179

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


to perform their duties as law enforcement officers to protect the residents of Tshwane

session See CAPEX performance presentation

CAPEX performance presentation

CAPEX performance presentation

08/11/2016: • No capital movables allocation was made to TMPD for 2016/17 financial year • However, R30 million was approved for the purchase of policing equipment and not firearms only. Funding can be used to procure all/any policing equipment in line with the

approximately 700 Shotguns

Camera with accessories 5 X Digital SLR Cameras with accessories 8 X Cardio Stationary Rowing Machines 12 X Cardio Stationary Exercise Bicycles 17 X Cardio Stationary Striders/Glyders 275 X i7 Desktop PC complete with screen 73 X i7 Laptop 42 X PC Screens

g sessions.

180

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


department’s Ward Based Deployment Strategy. • WBS’s to be broken down to specify exact items procured and update CaPS accordingly

6 X Colour Printers 88 X Mono Printers (Black) 18 X Ethernet Network Data Switch 3 X Digital Video Recorder 10 X Multi 9mm Workstation Fire Arm Safes 14 X Gymnasium Incline Benches 15 X Gymnasium Flat Benches 10 X IT Barcode Scanners

181

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget



Tshwane Packaging Facility

9.712974.1.015

The objectives of the project is to: (i) raise the productivity and quality of products; (ii) enhance the value added of the targeted products through processing and packaging; and (iii) improve producers’ access to more lucrative markets.

Region 7

% progress to date: External envelope: 100%; Internal divisions: 100%; Floor finishes: 80%; Wall finishes: 80%; Structural frame: 100%; Roof: 100%; Ceiling: 100%; Installation of electricity: 20%; and Plumbing: 20%.

Overall construction progress: 70%; External envelope: 100%; Internal divisions: 100%; Floor finishes: 80%; Wall finishes: 80%; Structural frame: 100%; Roof: 100%; Ceiling: 100%; Installation of electricity: 30%; Plumbing: 30%; Plastering: 80% and Painting: 80%.

Q4: Installation of equipment Mentorship and capacity building

Overall construction progress: 100%. External envelope: 100%; Internal divisions: 100%; Floor finishes: 100%; Wall finishes: 100%; Structural frame: 100%; Roof: 100%; Ceiling: 100%; Installation of electricity: 100%; Plumbing: 100%; Plastering: 100%; Installation of equipment: 100% and

NA NA The objectives of the project is to: (i) raise the productivity and quality of products; (ii) enhance the value added of the targeted products through processing and packaging; and (iii) improve producers’ access to more lucrative

Overall construction progress: 100%. External envelope: 100%; Internal divisions: 100%; Floor finishes: 100%; Wall finishes: 100%; Structural frame: 100%; Roof: 100%; Ceiling: 100%; Installation of electricity: 100%; Plumbing: 100%; Plastering: 100%; Installation of equipment: 100% and

Yes

NA 4,000,000

Target achieved

182

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


Painting: 100%.

markets.

Painting: 100%.


Business Process Outsourcing (BPO) Park Construction

9.712977.1.015

Job Creation, Investment Attraction, Skills, SMME and Infrastructure development

Region 2

Overall progress on programme = 14%. Building 1: Overall: 8%; First floor: 3%. Building 2: Overall: 11%; Ground floor: 98%; First floor: 28%. External works: Bulk services: 86%. Overall

Progress as at 16 May 2017 was reported as follows: Building 2: Vertical elements Gr-1st 95%; Vertical elements 1st-2nd 30%; Brickwork Gr-1st 90%; Slab 1st floor 50%; Building 1: Foundations 95%; Vertical elements

Q4: NA Progress as at 13 June 2017, was reported as follows: Building 1: Ground – 1st: Foundations 99% Surface bed 40% Vertical elements 75% Plumbing 1st fix 20% Electrical 1st fix 20% Internal staircase

As a result of the suspended services of the professional team, work has been progressing slowly and the Contractor will eventually stop. Should work be stopped, it will result in the following additional costs: - Disestabl

NA Bulk Services Installations (continued) Roads, parking Landscaping Finishes Facades Building Trades and finishes; Facades

Progress as at 13 June 2017, was reported as follows: Building 1: Ground – 1st: Foundations 99% Surface bed 40% Vertical elements 75% Plumbing 1st fix 20% Electrical 1st fix 20% Internal staircase

No An amount of R50 million has been budgeted in 2017/18 for this project.

50,000,000

Suspension of the services of the consultant. The Contractor has issued a notification of delay, siting that, given the unavailability of sign-off by

183

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


external (excluding paving): 44%.

Gr-1st 80%; Vertical elements 1st-2nd 5%; Brickwork Gr-1st 90%; Slab 1st floor 30%. External works: Sewer line 80%; Sewer MH 10%; Storm water line 80%; Storm water MH 10%. The professional team has as of 8 May 2017 suspended their services on site, due to the outstanding

5% External staircase 5% 1st floor – 2nd floor: Slab 30% Vertical elements 5% Formwork to slab 50% Plumbing 1st fix 5% Electrical 1st fix 5% Building 2: Ground floor: Foundations 100% Surface bed 80% Vertical elements 95% Plumbing 1st fix 20%

ishment costs; - Re-establishment costs; - Waiting costs; - Professional fees; and - Legal costs, etc. The Contractor has also, as a result, issued a notification of delay, siting that, given the unavailability of sign-off by the professional team on pre-concrete and underground

5% External staircase 5% 1st floor – 2nd floor: Slab 30% Vertical elements 5% Formwork to slab 50% Plumbing 1st fix 5% Electrical 1st fix 5% Building 2: Ground floor: Foundations 100% Surface bed 80% Vertical elements 95% Plumbing 1st fix 20%

the professional team on pre-concrete and underground services, they will be unable to proceed with the work.

184

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


approval of building plans, meaning that the Contractor will no longer have daily supervision and will not receive any due information/quality check.

Electrical 1st fix 20% Internal staircase 5% External staircase 5% 1st floor – 2nd floor: Slab 40% Vertical elements 20% Formwork to slab 75% Plumbing 1st fix 5% Electrical 1st fix 5% External works: Sewer 75% Stormwater 75% Water 15% Fire 0%

services, they will be unable to proceed with the mentioned trades. The notice further indicated that in terms of Clause 32.5.5 of the Joint Building Contracts Committee (JBCC) contract, an expense and loss claim against the above will be submitted, once the full extent can be determin

Electrical 1st fix 20% Internal staircase 5% External staircase 5% 1st floor – 2nd floor: Slab 40% Vertical elements 20% Formwork to slab 75% Plumbing 1st fix 5% Electrical 1st fix 5% External works: Sewer 75% Stormwater 75% Water 15% Fire 0%

185

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


Electrical 20% (Generators on site) (95 CORE cable from existing mini-sub to proposed RMU on site) Parking area 15% The Division, with the assistance of the Council for Scientific and Industrial Research (CSIR), revised the layout plans as recommended by the acting Governance and Support

ed. Massive delays in the processing of payments of the Contractor were experienced, due to interdependencies and new payment processes. This might also result in legal and financial implications for the City.

Electrical 20% (Generators on site) (95 CORE cable from existing mini-sub to proposed RMU on site) Parking area 15% The Division, with the assistance of the Council for Scientific and Industrial Research (CSIR), revised the layout plans as recommended by the acting Governance and Support

186

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


Officer and the amended plans/drawings were approved by the Roads and Transport Department. Upon submission to the Building Control office, an additional letter (“Section 32 letter”) was requested, in order to obtain approval. According to the acting Group Head: Economic Development and Spatial Planning,

Officer and the amended plans/drawings were approved by the Roads and Transport Department. Upon submission to the Building Control office, an additional letter (“Section 32 letter”) was requested, in order to obtain approval. According to the acting Group Head: Economic Development and Spatial Planning,

187

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


the letter cannot be issued, as the land/property does not belong to the City yet. The effect of this continuing situation will result in site closure, non-expenditure and non-attainment of the set targets (jobs, skills development and capex spend on local SMMEs). The Division has also

the letter cannot be issued, as the land/property does not belong to the City yet. The effect of this continuing situation will result in site closure, non-expenditure and non-attainment of the set targets (jobs, skills development and capex spend on local SMMEs). The Division has also

188

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


been struggling to spend accordingly, due to interdependencies. The new systems put in place by Group Financial Services, have resulted in massive payment delays to the Contractor.

been struggling to spend accordingly, due to interdependencies. The new systems put in place by Group Financial Services, have resulted in massive payment delays to the Contractor.


Brick Making Facility

9.712985.1.015

Stimulate participation of youth in mainstream economy, economic growth and reduce youth

Region 3

The MMC: Economic Development and Spatial Planning has signed a letter, seeking approval for

The MMC: Economic Development and Spatial Planning has signed a letter, seeking approval for the project to be

Q4 Completed construction work and installed machinery


The project will no longer be implemented in the current financial year.

NA Technical training for beneficiaries - concrete mixing and brick


No None 4,000,000

The project declared as a saving on the basis that neither a feasibility

189

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


unemployment

the project to be declared as a savings, on the basis that neither a feasibility study nor a business plan was developed for this project.

declared as a savings, on the basis that neither a feasibility study nor a business plan was developed for this project.



study nor a business plan was developed


Informal Trade Market (Inner City)

9.712988.1.015

Provide economic infrastructure to informal traders

Region 3

Specifications submitted to Supply Chain Management; briefing meeting scheduled for May 2017. A letter was

Briefing of Contractors conducted.

Q4 Completion of ground and first floors: reinforced concrete footings, columns, bases, floors, brickwork and electrical, mechanical, carpentry and plumbing installation

Evaluation of panel Contractor conducted; appointment conducted and letter of recommendation submitted for signature.


None Construction at Marabastad centre Barolak (complete first upper floor construction)

Evaluation of panel Contractor conducted; appointment conducted and letter of recommendation submitted for signature.

No An amount of R6,9 million has been budgeted in 2017/18 for this project.

7,400,000


190

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


sent out on 19 April 2017, regarding the use of panel service providers by Departments. A guideline was provided that indicated that construction projects were excluded from the scope of routine panels and that no new requests to use the panels

191

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


for construction projects, would be processed.


Inner City Regeneration

9.713023.1.021

Regeneration of Tshwane CBD and surroundings

Region 3

Budget: R36 254 200 (85% capex portion ICD grant received March 2017). 1st proposal - R8 million to be allocated for informal trader shelters to Economic

None None A decision for the re-allocation of the funding was not established

None None, ICD funding not spent

Reprioritisation to take place in 2017/18.

None No Reprioritisation to take place in 2017/18.

36,254,200

A decision for the re-allocation of the funding was not established

192

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


Development - R27 million to Dairy mall ‘Gautrans’ project 2nd proposal -To contribute the R36 million to the Housing Company Tshwane (HCT) towards the Marabastad Inner city social housing project (Townlands)

193

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget



Upgrading And Extension Of Market Facilities

9.710276 .1.015

Upgrading And Extension Of Market Facilities

Region 3

Two screw compressors installed at the upper cold rooms. Two chillers ordered and shipped. Expected arrival in June 2017.


Q4 Plastered walls on western side of Hall A

Two screw compressors installed at the upper cold rooms. Two imported chillers arrived and intalled.

completed

None Completed BAC cold room and installed chiller and compressor


Yes

5,500,000.00

Delivery delayed at harbour


Atmospheric Pollution Monitoring Network

9.711562.1.015

Procure air quality monitoring analysers

Region 3

No data recovery report received from the Service Provider

No data recovery report received from the Service Provider

Q4 CO and O3 Rosslyn station.

90% of data recovery, report received from the Service Provider

completed

None Procure air quality monitoring analysers

All instruments were delivered awaiting installations

Yes

3,000,000.00

Target achieved

Environment and Agriculture Man

240 Litre Containers

9.712092.1.015

Roll out of 240l bins

City Wide

In this month of April 2017, 1028 bins were distribu

In this month of May 2017, 1338 bins were distributed to

Q4: Distribute remaining bins as the need arises

In this month of June 2017, 1229 bins were distributed to

completed

None Procure and distribute 30 000 bins

4244 x green bins delivered

Yes

16,000,000.00

Target achieved

194

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


agement

ted to households. Therefore the total to date is 11 201 bins distributed to households

households Therefore the total to date is 12539 bins distributed to households

households Therefore the total to date is 12768 bins distributed to households The target of 10000 for this financial year has therefore been reached


Development of Klipkruisfontein Cemetery

9.712808.1.015

Development of Cemetery

Region 1

Supply and Delivery of Mobile office Data connection. Electricity connection. Work done: Comple

Planned: Supply and Delivery of Mobile office Data connection. Electricity connection. Work done: Complete

Q4 Project completed.

Planned: Supply and Delivery of Mobile office Data connection. Electricity connection. Work done: Complete

completed

None Complete construction of internal roads, sign off, payment.

Completed

Yes

400,000.00

Target achieved

195

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


ted Purchase Order for Fibre installation created

d

d


Development of Tshwane North Cemetery

9.712809.1.015

Planned: Electricity connection Beautification, Data Connection, Purchase of servitude. Work Done: Fast track implementation of all the deliverables in the last

Planned: Electricity connection Beautification, Data Connection, Purchase of servitude. Work Done: Fast track implementation of all the deliverables in the last quarter

None No, the upfront payment to Eskom has recently been effected.

electicity supply from Eskom

in talks with eskom…

No, the upfront payment to Eskom has recently been effected.

No 1,250,000.00

Target achieved

196

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


quarter


Upgrading of the market trading system

9.712868.1.015

Upgrading of the market trading system

Region 3

PlannedCommence with test packs and process development. Commence to purchase hardware Work done: 95% complete. Requisitions created for hardware and additional modules for the

System 100% developed. User Acceptance Testing to commence on 19 June 2017. Report on additional modules for the new sales system approved by the EAC. In process to install a WiFi System for the new sales system

Q4: Complete and implement sales system, project completed

System 100% developed. User Acceptance Testing to commence on 19 June 2017. Report on additional modules for the new sales system approved by the EAC. In process to install a WiFi System for the new sales system

completed

None Complete and implement sales system

Completed

Yes

5,500,000.00

Target achieved

197

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


new sales system. Report for the additional modules to be finalised with the City Manager. GICT confirmed that a tender was approved to supply hardware. Tender to be utilised for the R2.6m to procure additional hardware in Q3.

198

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget



Refurbishment of landfill sites

9.712964.1.015

Planned: Finalization of transaction with CoT Group Legal Services Work done: Finalized/Completed Payments in process

Planned: Finalization of transaction with CoT Group Legal Services Work done: Finalized/Completed Payments in process

Q4: Installation of weighbridge at Bronkhorstspruit landfill site

Title deed received from Deeds office (Acquisition of Bronkhorstspruit

completed

None Completed

Yes

5,000,000.00

Target achieved


Extension of Garankuwa Cemetery

9.712983.1.015

Extension of Cemetery

Region 1

Planned: Completing Installation of Concrete Palisade Fence Work done: Purchase

Completing installation of Concrete Palisade Fence


Completed installation of Concrete Palisade Fence

Completed

None Construction of disabled ablution facilities and guard house

Completed

Yes

1,200,000.00

Target achieved

199

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


Order created and Service Provider to resume with the works on 03 April 2017.


Upgrade infrastructure Nature Reserves

9.713024.1

.015

Upgrade security at Klapperkop Nature Reserve

Region 3

None Security upgrades Klapperkop Nature Reserve

No

Funds were reprioritized to other key priority project in the Department

650,000.00

Funds were reprioritized to other key priority project in the Department

Group Financial Services

Buildings & Equipment

9.712444.1.001

Upgrading of buildings

City Wide


Modification of Council chambers in Sammy marks into a custom

20,000,000

Report not submitted

200

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


er care center


Buildings & Equipment (security at the stores)

9.712444.1.015

Improved security at stores

City Wide

Q4 Improved security at stores

Replacement of doors and installation of burglar bars

10,000,000



BPC and SCOA

9.712961.1.015

Comply with regulation changes

Region 3

Closed. Configuration of software according to SCOA requirements

30,000,000



Automation of supply chain

9.712978.1.015

Elimination of SCM risks

City Wide

Q4 support and maintenance phase 2 go live

Elimination of SCM risks

30,000,000



Corporate capital movables

9.712989.1.007

Procurement of movable assets

City Wide

Q4 Procurement of furniture

Procurement of movable assets

18,500,000


201

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget



Replacement/Modernisation of all the lifts within various council buildings(City Wide)

9.712743.1.015

For public and employees to be able to access all CoT owned buildings, and to adhere to OHS standards.

Region 1

Q4 Complete existing installations and technical specs for outstanding lift installations

Complete existing installations and technical specs for outstanding lift installations

Tender non responsive

No

Re-Advertisement

2,000,000

Tender non responsive


City Hall Renovations

9.712960.1.015

Renovation of City Hall

Region 3

Q4Continuation of project depended on availability of additional funding.

ICT installation. Security Installation. Office Building Work.

Department not informed about its progress. No handover was done from the EM'S office

Not identified

20,000,000

Official handover not done from City Planning

Health

New clinic in Doornpoort

9.710075.1.015

Purchase Order already created.

Contractor on site, work in progress

Q4 Project Completed

Project completed

None None

Project completed

Yes

N/A

661,714.00

Target achieved

202

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


Health

Upgrading Of Clinic Dispensaries

9.712278.1.015

Ensure Sustainable, Safer Cities and Integrated Social Development

Region 6

Contractor appointed on the 18th April 2017

Site handover: 08 May 2017, Clearing of site and setting out has started.

Q4 Construction: Continue with Earthworks/ Concrete/framework/reinforcement, Precast Concrete

Earthworks underway

None None Construction of clinic dispensaries completed. Site handed back. Assets delivered.

Busy with earthworks

Yes N/A

11,341,343.00

Project was delayed due to removal of illegal occupants

Health

Upgrade and extension of Zithobeni Clinic

9.712683.1.015

Purchase Order already created.

Contractor on site, work in progress

Q4 Project Completed

Project completed

None None

Project completed

Yes N/A

3,158,657.00

Target achieved

Health

Refurbishment of Rayton Clinic

9.712684.1.015

To develop health services infrastructure, Primary Health Care clinic, in compliance with relevant legislation

Region 5

Awaiting Executive Adjudication Committee meeting

Waiting for Approval from the City Manager

Q4: Construction: Start with Earthworks

Earthworks underway

None None Construction: Earthworks completed. Start with masonry

Busy with earthworks

Yes N/A

7,038,286.00

Project delayed due to late appointment of contractor

203

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


Housing and Human Settlement

Water Rama City

9.710863.2.005

Construction of water reticulation

Region 1

Excavation, bedding, pipe laying, blanket and backfilling. % achieved for April 2017: 6%. Overall % achieved: 12%.

Excavation, bedding and pipe laying in progress. % achieved for My 2017: 18%. Overall % achieved: 37%.

Q4:Testing and inspections.

280 stand connections. % achieved in June 2017: 18%. Overall % achieved: 55%

None None Installation of water services (300 stands)

280 stand connections

Yes

R21 000 000.00 budgeted for the 2017/18 financial year

-

Target achieved


Water Sunnyside

9.710863.2.005

Water infrastructure

Region 3

Procurement process commenced, however all bids were way above the estimated project cost.

None Q4: None None The project did't pass project financial viability because of design cost estimation for the project which is above SHRA prescribed rates.

Project has been put on hold.

Completion of laying of pipes in Sunnyside

None No

0


204

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget



Water Mabopane Ext 1

9.710863.2.005.C


Region 1

None. % achieved for April 2017: 0%. Overall % achieved: 15%.

190 water connections. % achieved for May 2017: 1%. Overall % achieved: 45%.

Q4: The budget allocated for water & sewer reticulation has been exhausted which will affect completion of the project.

None. % achieved for June 2017: 0%. Overall % achieved: 45%.

Allocated budget has been exhausted.

The contractor has reduced pace on site to ensure that the are no community unrests.

Construction of water reticulation (646 stands)


No R26 000 000.00 budgeted for the 2017/18 financial year

0



Water Kopanong phase 2

9.710863.2.005.D


Region 1

Excavation, bedding and laying of pipe. % achieved for April 2017: 4%. Overall % achieved: 92%.

620 water connection. % achieved for May 2017: 5%. Overall % achieved: 93%.

Q4: Completion, inspection, practical completion and handover

70 stands connections. % achieved for June 2017: 6.5%. Overall % achieved: 99.5%.

The contractor is busy with final testing and remedial works on the main lines and commissioning of the reservoir so that the system can start to work.

Practical completion certificate will be issued on 14 July 2017.

Construction of water (315 stands)


Yes

0

Target achieved

Housing and Human Settl

Water Chantel x39

9.710863.2.005.L

Development of Chantel X39 water network

Region 1

None, the construction of the units is planne

None Q4: Completion, inspection, practical completion and handover.

None. Project is still at planning stage, township establishment

City Legal Department preparing POA.

completion of water network

None No R4 691 297.00 budgeted for the 2017/18

0

Project delayed by township estab

205

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


ement

d for 2017/18 financial year.

processes.

financial year

lishment processes


Water Fortwest 4&5

9.710863.2.005.L

Construction of water network

Region 3


None. % achieved for May 2017: 0%. Overall % achievexd: 99%.



Outstanding WULA approval from the Department of Water and Sanitation and allocated budget for the 2016/17 financial year exhausted.

HDA has been requested to unblock the challenges with the Department of Water and Sanitation.


None No R25 000 000.00 budgeted for the 2017/18 financial year

0


206

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget



Water Winterveldt

9.710863.2.005.L

Water infrastructure Winterveldt

Region 1

Excavation and pipe laying in progress. % achieved for April 2017: 15%. Overall % achieved: 60%.

Excavation and pipe laying in progress. % achieved for May 2017: 15%. Overall % achieved: 75%.

Q4:Laying of pipes

170 stands connections. % achieved for June 2017: 25%. Overall % achieved: 100%.

Area is densely populated and the extent of obstructions and existing structures is vast.

Ongoing intensive consultation with residents and local community structures.



Yes


0

Target achieved


Water Zithobeni Heights

9.710863.2.005.L

Water infrastructure; Zithobeni Heights

Region 7

None. % achieved for April 2017: 0%. 16% for both Northern side and southern side.

None. % achieved for May 2017: 0%. Overall % achievexd: 16%.

Q4:Laying of pipes


None None completion of water network


0

Late appointment of contractor


Water Refilwe Manor (Waste Water

9.710863.2.005.L

Water Infrastructure: Refilwe WWTW

Region 5

Waiting for final completion certifica

None, waiting for final completion certificati

Q4:Laying of pipes

None, waiting for final completion certificati

None None Construction of WWTW

Upgraded WWTW

Yes

None

0

Target achieved

207

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


ement

Treatment Works)

tion. % achieved for April 2017: 1%. Overall % achieved: 99%.

on. % achieved for May 2017: 0%. Overall % achieved: 99%.

on. % achieved for June 2017: 0%. Overall % achieved: 99%.


Water Refilwe Manor Resevoir

9.710863.2.005.L

Water infrastructure: Resevoir

Region 5

Revised reservoir drawings finalised and reinforcing still ordered and delivered to revised specifications. % achieved for April 2017: 0%. Overalll % achieved: 28%.

Shutters for reservoir walls first cast, construction of valve chamber/control room, excavation of trench for feeder and delivery pipes, construction of staircases from parking. . shaping of reservoir floor area.%

Q4:Laying of pipes

Shutters first cast and excavation for feeder on the southern part. % achieved for June 2017: 2%. Overall % achieved: 36%.

No allowance was made in the bill of quantities for electrical connection to the reservoir.

Variation order has been submitted by the contractor, waiting for the approval of the variation order.

Construction of Reservoir

None, construction still in progress, multi-year progress.

Yes

R42 000 000.00 budgeted for the 2017/18 financial year.

0

Target achieved

208

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


achieved for May 2017: 8%.


Water Zithobeni 8&9

9.710863.2.005.M

Construction of water and sewer reticulation, bulk water and sewer line

Region 7


None. % achieved for May 2017: 0%. Overall % achieved: 81%.

Q4: Allocated budget has been exhausted.

210 stand connections . % achieved for June 2017: 1%. Overall % achieved: 81%.

None None Construction of water and sewer reticulation, bulk water and sewer line (100 stands connections)


Yes


0

Target achieved


Sewer Rama City

9.710864.2.005

Sewer reticulation

Region 1

Excavation, bedding , blanket and backfilling. % achieved for April 2017: 6%.

Excavation, bedding and pipe laying in progress. % achieved for May 2017: 18%. Overall %


280 houses connections. % achieved for June 2017: 18%. Overall % achieved: 37%.

None None Completion of laying of pipes in Rama City


Yes


-

Target achieved

209

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


Overall % achieved: 12%.

achieved: 37%.


Sewer Sunnyside

9.710864.2.005


Region 3

Procurement process commenced, however all bids were way above the estimated project cost.

None Q4: Completion, inspection, practical completion and handover

None The project did't pass project financial viability because of design cost estimation for the project which is above SHRA prescribed rates.


Completion of laying of pipes in Sunnyside

None No

0



Sewer Chantel x39

9.710864.2.005.

Development of Chantel X39

Region 1

None, the construction of the units is planned for 2017/18 financial year.

None, the construction of the units is planned for 2017/18 financial year.


None Project is still at planning stage, township establishment processes.

City Legal Department preparing POA.

Completion, inspection, practical completion and handover

None No R7 175 471.00 budgeted for the 2017/18 financial year.

0

Project delayed by township establishment processes

210

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget



Sewer Winterveldt

9.710864.2.005.

Sewege provision

Region 1

Excavation and pipelaying in progress. % achieved for April 2017: 15%. Overall % achieved: 60%.

Excavation and pipe laying in progress. % achieved for May 2017: 15%. Overall % achieved: 75%.

Q4: Project completed

119 stand connections. % achieved for June 2017: 25%. Overall % achieved: 100%.

Area is densely populated and the extent of obstructions and existing structures is vast.

Intensive consultation with residents and local community structures.

Upgrading of sewer network


Yes


0

Target achieved


Sewer Mabopane Ext 1

9.710864.2.005.C

Sewer reticulation

Region 1


464 connections. % achieved for May 2017: 1%. Overall % achieved: 45%.


464 stand connections. % achieved for June 2017: 1%. Overall % achieved: 45%.


The contractor has reduced pace on site to avoid the risk of community unrests.

Completion of sewer reticulation


No R26 000 000.00 budgeted for the 2017/18 financial year

0



Sewer Kopanong Ext 1

9.710864.2.005.D

Sewer reticulation

Region 1

Construction of sewer house connections. %

620 water connection. % achieved for May 2017: 5%. Overall %


70 stand connections. % achieved for June 2017: 5%. Overall %

The contractor is busy with final testing and remedial works on the main

Practical completion certificate will be issued

Completion of sewer reticulation


Yes

0

Target achieved

211

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


achieved for April 2017: 4%. Overall % achieved: 92%.

achieved: 93%.

achieved: 99%.

lines and commissioning of the reservoir so that the system can start to work.

on 14 July 2017.


Sewer Zithobeni Heights

9.710864.2.005.H

Sewer infrastructure

Region 7

The contractor is busy blasting the rock on site and dumping the stockpiles at a dumping site. % achi.eved for April 2017: 0%. Overall % achieved: 94%.

1137 connections. % achieved for May 2017: 5%. Overall % achieved: 99%.


15 stand connections. % achieved for June 2017: 0.5%. Overall % achieved: 99.5%.

Contractor is busy with snagging.

None Completion of laying of pipes in Zithobeni Heights


Yes

0

Target achieved

212

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget



Sewer Fortwest 4&5

9.710864.2.005.L

Construction of water network

Region 3






Application has been assessed however the contractor must re-submit the engineering designs as requested by Water and Sanitation Department. Budget provision has been set aside for the 2017/18 financial year.

Completion, inspection, practical completion and handover

None No

0


213

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget



Sewer Zithobeni 8&9

9.710864.2.005.M


Region 7




224 stand connections completed. % achieved for June 2017: 0%. Overall % achieved: 81%.

None None Completion of laying of pipes in Zithobeni Ext 8&9


No R5 500 000.00 budgeted for the 2017/18 financial year.

0

Contractor suspended work on site due to outstanding roads invoice


Refilwe Manor Ext 9 - 2 x pump stations

9.710864.2.005.N

Upgrading of Sewer infrastructure

Region 5

Repair leaking sand trap, 255mm scour pipe from emergency tank to wet well installed. % achieved for April 2017: 1%. Overall %

Stripping & erecting shutters for emergency tank concrete walls, cleaning of concrete surfaces & reinforcing bar, leak test of emergency tank. % achieved

Q4: None Compacted filling around sand trap. % achieved for June 2017: 3%. Overall % achieved: 55%.

No allowance was made in the bill of quantities for electrical connection to the pump stations.

Variation order has been submitted by the contractor, waiting for the approval of the variation order.

Upgrading of Water Waste Treatment Works (WWTW)

None, construction still in progress, multi-year project.

Yes


0

Target achieved

214

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


achieved: 53%.

for May 2017: 2%. Overall % achieved: 55%.


Sewer Kudube unit 9

9.710864.2.005.O

Construction of water infrastructure and sewer infrastructure

Region 5



Q4: Continue with concrete works.


Contractor still has to connect sewer reticulation to the bulk line, which is currently under construction.

Sewer line will be connected once current bulk line is completed.

Construction of 10ML water reservoir & two sewer pump stations.

Sewer reticulation line completed

Yes


0

Target achieved


Roads & Stormwater Winterveldt

9.710865.2.005.

Construction of roads and stormwater

Region 1

Box cutting, road bed preparation, construction of layer works. % achieved for April 2017: 75%. Overall %

Box cutting, road bed preparation, construction of layer works. % achieved for May 2017: 34%. Overalll % achieved: 90%.


2.624 km roads and 1.795 km stormwater completed.

None None Construction of 2.19km of roads

2.624 km Yes


-

Target achieved

215

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


achieved: 83%.


Roads & Stormwater Thorntreeview

9.710865.2.005.B


Region 1

None, roads construction and bridge crossing completed. % achieved for April 2017: 0%. Overall % achieved: 100%.

None, roads construction and bridge crossing completed. % achieved for May 2017: 0%. Overall % achieved: 100%.


None None None Construction 1.9Km roads, 40m bridge crossing (roadlink)

2.5 km roads & 40m bridge crossing

Yes


0

Target achieved


Roads & Stormwater Fortwest 4&5

9.710865.2.005.H

Construction of roads

Region 3

Construction of stormwater pipe, roadbed and subbase. % achieved for


Q4: Phase 1 completed

None. % achieved for June 2017: 0%. Overall % achieved: 40%

Allocated budget for the 2016/17 financial year has been exhausted.

Budget provision provided in the 2017/18 financial year.

Phase 1 completed

None No R40 000 000.00 budgeted for the 2017/18 financial year.

0


216

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


April 2017: 7%. Overall % achieved: 40%.


Roads & Stormwater Soshanguve X5

9.710865.2.005.I


Region 1

Preparing for conducting practical completion certification. % achieved for April 2017: 5%. Overall % achieved: 95%.

3.485 km of roads completed. % achieved for May 2017: 4%. Overall % achieved: 99%.


0.34 km constructed in June 2017.

Project is practically completed.

Contractor busy addressing the snags.

Construcion of phase 1: 3,825 km of roads and stormwater systems.

3.825 km Yes


0

Target achieved



9.710865.2.005.J

Construction of Roads

Region 1

None. % achieved for April 2017: 0%. Oversall % achiave

None. % achieved for May 2017: 0%. Oversall % achieved: 69,5%.


None. % achieved for June 2017: 0%.

Dispute between the contractor and Engineer regarding the work done .

Assessment has been done and accepted by both parties.

Completion of construction of Roads in Soshanguve X12


0

Dispute between the contractor and Engineer

217

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


d: 69,5%.

regarding the work done .



9.710865.2.005.K


Region 1

Construction of kerbs and subbase layer. % achieved for April 2017: 1%. Overall % achieved: 79%.

The contractor on site is currently finalising the surface over a stretch of 3000m. % achieved for May 2017: 1%. Overall % achieved: 80%.


3 km of roads completed.



Completion of construction of Roads in Soshanguve X13

3 km Yes


0

Target achieved


Roads & Stormwater Zithobeni Ext 8&9

9.710865.2.005.L


Region 7




5.5 km of roads completed.



Completion of stormwater drainage in Zithobeni Ext 8&9

5.5 km Yes

0

Target achieved

218

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget



Land acquisitions (Region 7, 5 and 4)

9.710868.2.005.A

Acquisition of land for housing development

Region 4

None None Q4: Project completed

None None None Acquisition of land

None None

31,428,993.00

Progress report not submitted


Development of Saulsville hostels

9.711712.2.005

Development of social housing

Region 6




None Consultant still busy with urban development framework.


Approval of designs

None None


10,000,000.00

Consultant still busy with urban development framework.


Development of Mamelodi hostels

9.711713.1.005

Development of social housing

Region 6




None Consultant still busy with urban development framework.


Final approval of designs

None None


10,000,000.00

Consultant still busy with urban development framework.


Townlands, Marabastad

9.713003.1.005


Region 3

None. Installation of infrastructure service

Site establishment.

Q4: Completion, inspection, practical completion

Construction of platforms.

Contractor behind schedule, unable to reach

The client is exploring implementing

Completion of laying of pipes in

None No

10,258,750.00

Contractor behind sche

219

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


ement

s and platforms underway..

and handover

target of 100 units by end June 2017.

penalties.

Marabastad

dule, unable to reach target of 100 units by end June 2017.

Regional Operations and Coordination

Jojo Tanks - Re Aga Tshwane

9.713021.1.005

None

3,000,000.00


Roads and Transport

Contributions: Services For Township Development

9.710115.1.015

City Wide

Q4: payment of contributions to Ptn 1 of erf 2 Verwoerdburgstad and Hondsrivier 508 JR:

Payment of contributions to Ptn 1 of erf 2 Verwoerdburgstad and Hondsrivier 508 JR: and Portion 379

100% Yes

Amount of R 678 337.87 need to be paid to Developer of Boardwalk x 18 in 2017/2018

6,967,621.00

Target achieved

220

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


and 378 of the farm Olievenhoutbosch 389-JR

Roads and Transport

Rehabilitation Of Stormwater Systems & Sidewalks

9.710220.2.015

City Wide

None No work planned

Q4: Payment of court order

Court order not paid


Funds will be transferred to the perfoming projects.

Payment of court order

Court order not paid

NO Court order will be paid once the company exists and e procurement registered.

5,525,100.00


Roads and Transport

(710657) Mabopane Station Modal Interchange

9.710657.2.015

Provide modal transfer facilities

Region 1

Site Establishment, Hoarding around the Site, Tacky survey, Testing and Quality Assurance of existing

Fencing clear VU 200m, 20% stormwater manholes, 5% brickwork of hawkers stalls, 5% Administration building, 10% paving

Q4 Drainage and erosion protection (1000m3 2.0m x 2.0m x 0.3m Gabions), Pavement layers, and completion of 20 food stalls

30% stormwater manholes, 30% sewer manholes, 20% sewer pipes, 25% brickwork hawkers stalls, 5% administration building,

The contractor could not start with any work according to his program before the integrity of the existing work were properly

Construction program to be adjusted

Construction of 2033m² block paving. Water reticulation(725). Electrical work installations, construction of 2 traffic circles

Site Establishment, Hoarding around the Site, Tacky survey, Testing and Quality Assurance of existing layer works. 200m

NO Scope of work for 2016/17 financial year will be in cooperated on 2017/18 final year and the construction progra

29,097,344.00

The contractor could not start with any work according to his program before the integr

221

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


layer works.

(relocation of informal traders), 40% of electrical sleeves, 5% demolition of stub columns

35% paving ( relocation of informal traders), 40% electrical sleeves, 20% demolition of existing stub columns

investigated and actions decided on.

at Buitekant street and 56 food stalls

clear VU Fencing, 30% stormwater manholes, 30% sewer manholes, 20% sewer pipes, 25% brickwork hawkers stalls, 5% administration building, 35% paving ( relocation of informal traders), 40% electrical sleeves, 20% demolition of existing stub columns

m will be adjusted accordingly

ity of the existing work were properly investigated and actions decided on.

222

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


Roads and Transport

(711164) Block W - Stormwater Drainage (Soshanguve)

9.711164.2.005

Provide access roads and appurtenant stormwater drainage as part of the stormwater system

Region 1

No work done.

No work done.

Q4 Road = 0.5km and Stormwater = 1.2km completed

No work done.

The budget has been transferred to other projects

None Design Review

The detail design review has been completed.

Yes

Constuctioon stage

805,376.00

Target achieved

Roads and Transport

Doubling Of Simon Vermooten

9.711800.1.002

Region 6

Q4: Expropriation on Portion 253 Equestria Ext 61. Expropriation on Portion 2, Samcor Park Township. Expropriation of Erf 42, Willow Park Manor, Extension

• Expropriation on Portion 253 Equestria Ext 61 • Expropriation on Portion 2, Samcor Park Township • Expropriation of Erf 42,

1,567,296.00


223

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


Willow Park Manor, Extension

Roads and Transport

(711863) Internal Roads: Northern Areas

9.711863.2.005

To reduce road and stormwater backlogs in these areas

Region 1

Q4 busy preparing 4.5km Pavement layers

6.4 km of Stormwater and preparing 4.5km Pavement layers

48,749,601.00

Roads and Transport

Internal Roads: Northern Areas

9.711863.2.015

Q4 Busy Preparing 4km of pavement Layers

4km of pavement Layers

42,915,683.00

Roads and Transport

Separation: Airside/Landside: Required legislative compliance with Civil Aviation Regulations, and the National Aviation Security Program (NASP)

9.711953.2.001

To enhance legislative compliance requirements

Region 2

Q4 Complete installation of access point canopies, fencing, paving, security/screening equipment, upgrade of permit office

Complete installation of access point canopies, fencing, paving, security/screening equipment, upgrad

7,000,000.00

224

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


e of permit office

Roads and Transport

Flooding Backlogs: Sosh & Winterveldt Area

9.712220.1.005

239,488,284.00

Roads and Transport

Flooding Backlogs: Sosh & Winterveldt Area

9.712220.1.015

76,096,955.00

Roads and Transport

Soshanguve Block BB North West (A)

9.712220.1.005.A

Address roads and stormwater backlogs

Region 1

Snaglist

Snaglist Q4 Project completed

Project completed

Project completed

Project completed

Road = 1.6km, Sidewalks = 0.84km; Speed humps = 10No. and Road signs = 10No. completed. Project completed.

Road = 1.68km, Sidewalks = 2.694km; Speed humps = 25No. and Road signs = 12No. completed. Project completed.

Yes

Project completed

-

Target achieved

225

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


Roads and Transport

Soshanguve Block BB Central South (C)

9.712220.1.005.C


Region 1

Sidewalks = 0.50km and Speedhumps = 12No. completed

Sidewalks = 0.10km and Roadsigns = 12No. completed


Snaglist Slow progress of the contractor. Certificate of practical completion has been issued on10 May 2017.

Contractor has been put under terms

Stormwater .103km Road = 0.3km, Sidewalks = 0.3km; Speed humps = 10No. and Road signs = 14No. completed

Road = 0.457km, Sidewalks = 2.10km; Speed humps = 12No. and Road signs = 12No. Completed. Snaglist underway.

No Snaglist outstanding

-


Roads and Transport

Soshanguve Block BB North East (E)

9.712220.1.005.E


Region 1

Project completed

Project completed


Project completed

Project completed

Project completed

Sidewalks = 0.6km completed. Project completed

Sidewalks = 1.578km completed. Project completed.

Yes

Project completed

-

Target achieved

Roads and Transport

Soshanguve Block GG North West (F)

9.712220.1.005.F


Region 1

Project completed

Project completed


Project completed

Project completed

Project completed

Road = 1.042km; Sidewalks = 0.5km; Speed humps = 6No. and Road signs =

Road = 1.042km; Stormwater = 0.16km; Sidewalks = 2.401km; Speed humps = 16No. and Road

Yes

Project completed

-

Target achieved

226

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


6No. completed

signs = 14No. completed. Project completed.

Roads and Transport

Soshanguve Block GG Central North (G)

9.712220.1.005.G


Region 1

Project completed

Project completed


Project completed

Project completed

Project completed

Sidewalks = 0.3km. Speed humps = 10No. and Road signs = 10No.

Road = 0.069km; Sidewalks = 2.546km; Speed humps = 23No. and Road signs = 31No. completed. Project completed.

Yes

Project completed

-

Target achieved

Roads and Transport

Soshanguve Blocks GG, LL & NN North (H)

9.712220.1.005.H


Region 1

Roads = 1.378km; sidewalks = 0.274km; Speedhumps = 5No. And Roadsigns = 10No. completed

Road = 0.001km; sidewalks = 0.265km; Speedhumps = 5No. And Roadsigns = 22No. completed

Q4 Road = 1.294km, Sidewalks = 1.9km; Speed humps = 20No. and Road signs = 40No. completed

Stormwater = 0.002km; sidewalks = 1.010km; Speedhumps = 2No. And Roadsigns = 13No. completed

None None Road = 4.535km, Sidewalks = 1.9km; Speed humps = 15No. and Road signs = 15No. completed

Roads = 5.843km, Stormwater = 0.551km; Sidewalks = 2.810km; Speed humps = 45No. and Road signs = 45No. Completed. Snaglist

Yes

None

-

Target achieved

227

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


underway.

Roads and Transport

Soshanguve Block NN North Central (I)

9.712220.1.005.I


Region 1

Project completed

Project completed


Project completed

Project completed

Project completed

Sidewalks 2.1km; Speed humps = 5; No. and Road signs = 5 completed

Road = 0.525km, Stormwater = 0.525km; Sidewalks = 5.30km; Speed humps = 24No. and Road signs = 44No. completed. Project completed.

Yes

Project completed

-

Target achieved

Roads and Transport

Soshanguve Block NN Central (J)

9.712220.1.005.J


Region 1

Project completed

Project completed


Project completed

Project completed

Project completed

Snag list

Project completed

Yes

Project completed

-

Target achieved

Roads and Transport

Soshanguve Block NN South (K)

9.712220.1.005.K


Region 1

Sidewalk preparations

Sidewalk preparations


Sidewalk = 0.80km completed

Slow progress of the contractor. Certificate of practical

Contractor has been put under terms

Sidewalks = 2.2km; Speed humps = 5; No. and

Road = 0.519km, Sidewalks = 0.80km and Speed humps =

No Reduction of scope

-


228

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


completion has been issued on 05 June 2017.

Road signs = 5 completed

11No. completed. Snaglist underway.

Roads and Transport

Soshanguve Block BB East (L)

9.712220.1.005.L


Region 1

Roads = 0.382km completed

Layerworks

Q4 Road = 4.1km, Stormwater = 0.154km, Sidewalks = 3.7km; Speed humps = 30No. and Road signs = 30No. completed

Layerworks and laying of kerbs.


Engage the community through the Project Steering Committee (PSC) meetings

Stormwater .504km - Road = 2km, Sidewalks = 1.6km; Speed humps = 5No. and Road signs = 10No. completed

Road = 3.340km and stormwater = 0.230km completed.

No Balance of the scope to be completed in the 2017/18 financial year

-


Roads and Transport

Soshanguve Block IA East (M)

9.712220.1.005.M


Region 1

Project completed

Project completed

Q4Project completed

Project completed

Project completed

Project completed

Road = 1.75km completed; Speed humps = 5No. and Road signs = 5No.

Road = 1.750km; Sidewalks = 0.30km; Speed humps = 13No. and Road signs = 63No. completed. Project

Yes

Project completed

-

Target achieved

229

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


completed

completed.

Roads and Transport

Soshanguve Block IA West (N)

9.712220.1.005.N


Region 1

Stormwater = 0.35km and sidewalks = 0.40km completed

Project completed


Project completed

Project completed

Project completed

Stormwater .36km; Road = 3.1km, Sidewalks = 1.0km; Speed humps = 5; No. and Road signs = 5No. completed

Roads = 3.10km, Stormwater = 0.37km; Sidewalks = 3.842km; Speed humps = 22No. and Road signs = 44No. completed. Project completed.

Yes

Project completed

-

Target achieved

Roads and Transport

Soshanguve Block LL South (O)

9.712220.1.005.O


Region 1

Q4: Roads = 1.575km Sidewalks = 1.6km; Speed humps = 10No. and Road signs = 20No

Stormwater = .09km; Road = 4.575km, Sidewalks = 1km; Speed humps = 5; No. and Road signs =

-


230

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


5No. completed

Roads and Transport

Soshanguve Block GG East Area 1 (P)

9.712220.1.005.P


Region 1

Project completed

Project completed


Project completed

Project completed

Project completed

Roads = 3.4km completed; Sidewalks = 2.2km; Speed humps = 10No. and Road signs = 10No. completed

Roads = 3.50km; Sidewalks = 1.50km; Speed humps = 20No. and Road signs = 44No. completed. Project completed.

Yes

Project completed

-

Target achieved

Roads and Transport

Soshanguve Block GG East Area 2 (Q)

9.712220.1.005.Q


Region 1

Project completed

Project completed


Project completed

Project completed

Project completed

Road = 1.044km, Sidewalks = 2.0km; Speed humps = 5No. and Road signs = 5No. completed

Road = 1.445km; Sidewalks = 3.22km; Speed humps = 34No. and Road signs = 63No. completed. Project completed.

Yes

Project completed

-

Target achieved

231

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


Roads and Transport

Soshanguve Block GG Central (R)

9.712220.1.005.R


Region 1

Q4: Roads = 1.2km Sidewalks = 2.2km; Speed humps = 10No. and Road signs = 20No

Road = 1km and Stormwater = 2.127km completed

-


Roads and Transport

Soshanguve Block BB Central (S)

9.712220.1.005.S


Region 1

Project completed

Project completed

Q4: Road = 0.829km, Speed humps = 5No. and Road signs = 6No. completed

Project completed

Project completed

Project completed

Stormwater 1.1km - Road = 1.229km, Sidewalks = 0.6km; Speed humps = 4No. and Road signs = 6No. completed

Roads = 3.229km; Stormwater = 1.465km; Sidewalks = 1.482km; Speed humps = 30No. and Road signs = 51No. completed. Project completed.

Yes

Project completed

-

Target achieved

Roads and Transport

Flooding Backlogs: Mabopane Area

9.712221.1.015

Q4: None Design Review

1,100,000.00


Roads and Transport

(712506) Flooding backlog: Network 5A, Matenteng

9.712506.1.015

Roads to reduce backlogs

Region 2

Q4: 1000 m of Stormwater

0

285,000.00


232

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


Roads and Transport

Upgrade and replacement of all runway and taxiway lights, Papi lights, apron lights, security and lighting system to meet legislative compliance

9.712884.1.001

Improvement on runway to meet legislative compliance requirements

Region 2

Q4: Complete ground lighting replacements

Ground lighting replacements completed

2,500,000.00


Roads and Transport

Upgrading of Road from gravel to tar in Ekangala Ward 11 & 12

9.712895.1.015

Region 7

Q4: Design review

Design Review

100% complete

Yes

Construction to commence in 2018/2019 Financial year

150,000.00

Target achieved

Roads and Transport

Improvement of dirt road leading to Clover hill club, Bronkhorstspruit dam

9.712947.1.015

Region 7

Q4: Designs of approximately 2.3 km of roads and Stormwater and a 10m bridge

Designs of approximately 2.3 km of roads and Stormwater

0% Complete

No No budget allocated in the 2018/2019 financial year

2,500,000.00

Reasons not provided

233

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


and a 10m bridge

Roads and Transport

Construct improved security accesses to restricted maintenance areas with CCTV system and upgraded control room to meet CAA compliance requirements

9.712998.1.015

Improved security accesses to restricted maintenance

Region 2

Q4: Complete installation of person intruder identification system, CCTV installation and upgrade of control room according to available budget

Complete installation of person intruder identification system, CCTV installation and upgrade of control room according to available budget

6,500,000.00


Roads and Transport

Elevator/escalator for main terminal building

9.713000.1.015

Improved access at main building

Region 2

Q4: Continue with construction and installation

Access options for installation of an elevator for the main terminal building

2,000,000.00


234

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


(construction partially completed)

Roads and Transport

Fire sprinklers and smoke detectors in the main terminal building required to meet legislative compliance requirements

9.713002.1.015

Improved fire safety equipment to meet legislative compliance requirements

Region 2

Q4: Complete installation of fire detection system

Complete installation of fire detection system

1,500,000.00


Roads and Transport

Provision, upgrade and replacement of security fences/gates, fence lighting, alarm and related systems/equipment

9.713004.1.015

Improvement on security to meet legislative compliance requirements

Region 2

Q4: Completed fourth phase installation of fences/gates, fence lighting and equipment

Completed fourth phase installation of fences/gates, fence lighting and equipment

2,000,000.00


235

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


Roads and Transport

Rainbow Junction and Rehabilitation of the Apies River

9.712920.1.015

City Wide

Q4: Payment of Expropriation of land

Payment of Expropriation of land

3,354,265.00


Roads and Transport

Spoorview - Re Aga Tshwane

9.713022.1.005

Contruction of Roads

Region 1

Q4: None Road designs

1,000,000.00


Roads and Transport

CBD and Surrounding Areas (TRT)

9.712591.1.002

748,432,704.00

Roads and Transport

Construction of Line 1A: CBD to Rainbow Junction Section 1A-4B (Rainbow Junction Bypass road)

9.712591.1.002.AA

Improved public transport facilities

Region 2

Q4: 80% Completion of Roads and Ancillary works

80% Completion of Roads and Ancillary works

-


Roads and Transport

Line 2B: Atterbury Rd (btw Lois Avenue and January Masilela)

9.712591.1.002.AC


Region 6



-


236

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


Roads and Transport

BRT Line 2C - Watloo Rd (btw Simon Vermooten & Denneboom Station)

9.712591.1.002.C


region 6



-


Roads and Transport

Belle Ombre CNG Bus Depot: Building Works

9.712591.1.002.J


Region 3

Q4: Project completed and Snags 100% complete

Project completed and Snags 100% complete

-


Roads and Transport

Belle Ombre CNG Bus Depot: Civil Works

9.712591.1.002.L


Region 2


Project completed

-


Roads and Transport

NMT Facilities Line 2A (Park Street)

9.712591.1.002.O


Region 3


Project completed

-


Roads and Transport

The Design, Supply, Installation, Operation and Maintenance of an automated fare

9.712591.1.002.P


city wide

Q4: On going Operations on Line 1A, 2A and TBS

On going Operations on Line 1A, 2A and TBS

-


237

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


Collection (AFC) System

Roads and Transport

Design, supply and install of APTMS system

9.712591.1.002.Q


city wide

Q4: On going system maintenance Operational support

On going system maintenance Operational support

-


Roads and Transport

Belle Ombre CNG Bus Depot -Bulk Earthworks

9.712591.1.002


Region 3

Q4: None Project completed

-


Roads and Transport

Kopanong Intermodal Facility-West of the City

9.712591.1.002


Region 2

Q4: 100% overall completion of the Intermodal Facility

100% overall completion of Kopanong Intermodal Facility

-


Roads and Transport

Design and Construction of Hatfield Taxi Facility

9.712591.1.002


Region 3

Q4: 100% overall completion of the Taxi Facility

100% overall completion of the Taxi Facility

-


238

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


Roads and Transport

Design and Construction of Menlyn Overpass

9.712591.1.002


Region 6

Q4: 40% overall completion

40% overall completion

-


Roads and Transport

Design of Line 3-CBD to Atteridgeville

9.712591.1.002


Region 3

Q4: Tender Documentation finalised

Tender Documentation finalised

-


Roads and Transport

Design of Wonderboom Intermodal Facility-Permanent Phase 1

9.712591.1.002


Region 2

Q4: None 100% Completion of the Intermodal Facility (Phase 1)

-


Roads and Transport - TRT

Design of Wonderboom Intermodal Facility-Permanent Phase 2

9.712591.1.002


Region 2

Q4: Site Establishment, and construction kickoff

Site Establishment, and construction kickoff

-



Upgrade of IT Networks

9.710200.1.015

Enhancement of network services

City Wide

No work was done for the period

No work was done for the period

5 network sites upgraded

Network equipment ordered for various buildings requirement

Not applicable

none Procurement and migration of network equipment

Procured network equipment

Yes

10,000,000

Target achieved

239

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget



One Integrated Transaction Processing System

9.710213.1.015

One Integrated Transaction Processing System

Region 3

Development on SAP solution is completed

UAT for SAP e-recruitment system

Q4 Integrate city's transactional legacy systems into SAP

Development and testing of the solution is completed succesfully the solution is at the pre production area.

Not applicable

none Integrate city's transactional legacy systems into SAP

Development and testing of the e-Recruitment solution is completed succesfully the solution is at the pre production area.

No Waiting for hardware

25,000,000



Computer Equipment Deployment - End user computer hardware equipment

9.710268.1.015

Procurement of desk top equipment

Region 3

Deployment of desktop Equipment




Not applicable

none Procurement of desk top equipment as per request

Equipment was deployed according to user requests

Yes

15,500,000

Target achieved


Implementation Of Storage Area Network

9.710344.1.015

Enhance storage capacity

Region 3

Regulation 32 was submitted for approval

Regulation 32 was submitted for approval

Q4 Operational and sizing review underway

Server and storage equipment purchased and delivered

Not applicable

none Upgrading of Storage Area Network at Tshwane Wide

Server and storage procured

Yes

10,000,000

Target achieved

Shared Services -

E-Initiative Supporting the Smart City

9.712554.1.015

E-initiative supporting the Smart

Region 3

Developed functional

Investment Facilitation System

Q4 1 business process automated.

UAT completed

Not applicable

none One business process

Investor portal Competed

Yes

20,000,000

Target achieved

240

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


GICT

City at City Wide

specifications for investment facilitation system developed

developed

automated


Credit Control Solution

9.712969.1.015

Deliver Credit Control module

City Wide

Meter reading solution completed

UAT for Meter reading was completed.

Q4 Integrate city's transactional legacy systems into SAP


Not applicable

none Integrate city's transactional legacy systems into SAP


No Waiting for hardware

8,286,712



Smart Connect

9.712981.1.010

Service Improvement

Region 3

Project closed

Project closed

No activity Q4: Project complete

Project closed

Training and support on Smart Connect system

Yes

200,000 Target achieved

Shared Services -

Tshwane House IT Infrastructure

9.713005.1.015

Provide ICT services to

City Wide

Regulation 32 was submitt

Regulation 32 was submitted

Q4 Commissioning and closure

Network, Server and storage equipmen

Not applicable

Procurement of data centre infrastr

Datacentre infrastrucrure procurem

Yes

85,713,288

Target achieved

241

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


GICT

Tshwane House

ed for approval

for approval

t purchased and delivered

ucture and commissioning

ent complete

Shared Services - GHC

Tshwane Leadership and Management Academy (City Wide)

9.712953.1.020

To execute technical training which is in accordance with the set standards. Therefore the necessary machinery needs to be available

City Wide

Power pipe cutter as well as spot welding machine were purchased.

2 x Ford Ranger Bakkies, Pre-wired fault finder and Chain drive modules were purchased.

Q4 Procurement of technical machinery and tooling equipment: Needs still to be prioritise in order of importance.

1 x Ford Figo 1.6 sedan and Upgrade of Men's and Women's ablutions were purchased and completed respectively

Underspending is due to delays of approving Q-files and tender documents from SCM office. Not all the Q-files have been advertised and approved as expected and none of the tenders that we submitted have been approved for the division to proceed

Unspent funding from the LGSETA Grant will be rolled-over to 2017/2018

Procurement of technical machinery and tooling equipment: Needs still to be prioritise in order of importance.

3 x vehicles ( 2 x Ford Ranger Bakkies & 1 x Ford Figo 1.6 sedan), Upgrade of Men's and Women's ablutions, Pre-wired fault finder, Electrical Pipe threader, Power pipe cutter, Petrol engine on stand, Gear driven pedestal and Chain drive modules

No The technical machinery of technical training purposes will be purchased during 2017/2018

10,000,000

Delays in approving Q-files and tender documents from SCM office

242

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


with spending funds. There are commitments that will be finalized before the end of the financial year elapses.

as well as spot welding machine were purchased.


Upgrading/ Strengthening of Existing Network Schemes

9.710005.1.016

Upgrading and Strengthening of the existing Electrical Network. Application Driven.

City Wide

Q4: Process 100% of applications received

Process customers paid application to upgrade and strengthen the existing network (application Driven)

4,000,000


Utility Services - Energy &

Payments to Townships for Reticulated Towns

9.710006.1.016

Supply external infrastructure for new township

City Wide

Q4: Project complete for 2016/17 Financial Year

Supply external infrastructure for new townshi

3,500,000


243

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


Electricity

(City Wide)

developments as per application.

p developments as per application.

Electr

icity

for All

9.710178.2.

005

142,664,750

Programme

Electr

icity

for All

9.710178.2.

006

40,000,000

Programme


710178 (005) Electricity for All - Region 1

9.710178.2.005.D

Upgrading of electricy network

Region 1

Construction of the electricity network backbone structure with 100 connections Q4: Construction on the electricity network backbone structure with 900 connections

Construction on the electricity network backbone structure with 4061 connections

-




9.710178.2.005.E


Region 5

Construction of the electricity network backbone structure with 300 connections Q4:

Construction on the electricity network backbone structur

-


244

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


Construction of the electricity network backbone structure with 440 connections

e with 500 connections



9.710178.2.005.F


Region 6

Construction of the electricity network backbone structure Q4: Construction of the electricity network backbone structure with 1400 connections


-




9.710178.2.005.G


Region 7

Q4: Construction of the electricity network backbone structure and commissioning with 1023 connections


-


245

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget




9.710178.2.006


City Wide

Complete installation of building roof and equipment support structures. Receive delivery of equipment Q4: Complete installation of support structures and building

Construction of the network backbone structure completion of the platform.

-




9.710178.2.006


City Wide


Funds will be transferred during adjustment however the targets for this projects are moved to other regions

-


Utility Services - Ener


9.710178.2.006


City Wide


Completion of 1490 connections

-


246

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


gy & Electricity



9.710178.2.006


City Wide



-




9.710178.2.006


City Wide



-


247

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget




9.710178.2.006


City Wide


Completion and energizing the network with 90 connections

-




9.710178.2.006


City Wide



-




9.710325.1.005

Upgrading of the existing fibre optic and network expansion

City Wide

Q4: Installation of optical fibre and load testing equipment

To install 25km of optical fibre, installation of Microwave equipment, Substat

8,000,000


248

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


ions Load Testing Devices



9.710325.1.016

Upgrading of the existing fibre optic and network expansion

City Wide

Finalise outstanding Installation for the Comms System, Scada upgrade, FOX Interface Cards Q4: Installation of 25km Optical Fibre Cables and Communication System.

To install 25km of optical fibre, installation of Microwave equipment, Substations Load Testing Devices

5,000,000



Strengthening 11kV Cable network

9.710480.1.015

Strengthening of the 11kv cable network to address additional capacity for new developments

2; 3; 5

Install 2km of cable Q4: Install 6,5km of cable

To install of 6,5km of 11kV cables

10,000,000


249

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget



Strengthening 11kV Overhead Network

9.710481.1.015

Upgrading of 11kV Overhead

Region 3

Install 2km of line Q4: Install 3.5km of line

Upgrading of 11kV Overhead as per identification of needs. This total will contribute to the yearly target of 8km.

10,000,000



Substations

9.710484.1.005

Construct additional substations to address electricity needs

1 & 6

N/A Q4: Close out of all projects, finalize all outstanding payments

To complete 3x new satellite substations

4,000,000



Tshwane Public Lighting Programme

9.710556.2.005

Installation of new Streetlights and high masts in Tshwane

City Wide

Construction of the Network Backbone infrastructure, 200 Streetlights and 3 High masts Q4: 700 Streetlights

To install 1700 streetlights and 25 high masts

45,000,000


250

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


and 18 High masts


Tshwane Public Lighting Program

9.710556.2.016

Installation of new Streetlights and high masts in Tshwane

City Wide

Construction of the Network Backbone infrastructure, 200 Streetlights and 2 High masts Q4: 400 Streetlights and 10 High masts

To install 400 streetlights and 10 high masts

15,000,000




9.711862.1.005

Receive and pay order (100% of requested prepaid meters installed)

Project completed Q4: Receive and pay order (100% of requested prepaid meters installed)

17,000,000




9.711862.1.015

Receive and pay order (100% of requested prepaid meters

Project completed Q4: Receive and pay order (100% of requested prepaid meters installed)

36,995,429


251

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


installed)


Replacement of Obsolete And non functional Equipment

9.712006.1.016

Replacement of obsolete and non functional equipment

Region 3

Q4: Milestone not submitted

Replacement of Non-Functional Equipment at All 7 ward and regions

4,000,000



New Bulk Infrastructure (USDG)

9.712279.1.005

Q4: No activity

26,000,000

Programme


New Bulk

Electricity

Infrastructur

e

9.712279.1

.015

133,100,000

Programme

252

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget



Eldonraigne 132/11kv substation (3 x 40MVA Power Transformers)

9.712279.1.015

Upgrading of substation

Region 4

Delivery, Installation and commissioning of transformers Q4: Installation and commissioning of transformers

Installation and commissioning of transformers

-



Kentron 132/11kv Substation refurbishment

9.712279.1.015


Region 4

None Q4: Project completed

Substation building construction and substation equipment

-



Monavoni Power Line Servitude

9.712279.1.015

Acquisition of land for power land

Region 4


Payment for land for the power line servitude

-



Mamelodi-3 132/11kv substation (2 x 40MVA Power

9.712279.1.015


Region 5

Installation and commissioning of power transformers Q4: Delivery, installation

Installation and commissioning of power

-


253

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


Electricity

Transformers)

and commissioning of power transformers

transformers


Eldoraigne 132/11kv Substation

9.712279.1.015.1.E


Region 4

Commission line feeder bay and existing 20MVA transformer Q4: Commissioning and testing including commissioning of existing 20 MVA transformers

Commission line feeder bay and new transformer

-



Hatherley 132/11KV substation

9.712279.1.015.1.G


Region 6

String the Wildebees - Elland lines Q4: Complete the stringing of the Wildebees - Hatherley/Elland lines

Test and commission of the power line

-



Soshanguve JJ 132/11KV Substation

9.712279.1.015.1.J

Upgrade of substation

Region 1

Construction of Building and delivery of Steel and equipment Q4: Complete installation of

Complete installation of support structures and building

-


254

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


Electricity

support structures and building


Monavoni 132/11KV Substation

9.712279.1.015.1.M


Region 4

Commission line feeder bay and existing 20MVA transformer Q4: Commissioning and testing including commissioning of existing 20 MVA transformers

Installation of 132kv equipment

-



Mamelodi-3 132/11KW Substation

9.712279.1.015.1.M


Region 6

Q4: Commission of the substation

Substation hand over

-



New Connections

9.712483.1.016

Installations of new electricity connections

Region 3

To achieve 200 Residential connections as well as 20 non residential connections for the month

To achieve a yearly target of 2295 Residential connections as

22,000,000


255

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


Q4: To achieve 465 Residential connections as well as 55 non residential connections connections for the month

well as 205 non residential connections.


Replacement of Obsolete Protection and Testing Instruments

9.712861.1.016

To provide quality services and infrastructure, in respect of obsolete instruments being replaced/refurbished

City Wide

Project close up Q4: Receive and pay order (100% of obsolete equipment Replaced according to the 2015/1615 action-plan)

Purchase testing equipment

1,500,000



Substation Peripheral Equipment Programme

9.712906.1.016

City Wide

Installation and commissioning of 20 Power Quality sites and server configuration and commissioning Q4:

To procure, install and commission Power Quality Monitoring System which

6,000,000


256

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


Installation, commissioning of 100 Power Quality sites

monitors 130 sites connected to the control centre


AMVI Infrastructure (Smart Meter Project)

9.713020.1

.001

Installation of smart meters to improve revenue collection

City Wide


Acquire the front and back end system that is used for the Security of Revenue Project from the Service Provider in terms of the Interim Services and Termination Agreement.

950,000,000


257

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


Utility Services: Water & Sanitation

(710022) Township Water Services Developers: Tshwane Contributions (City Wide)

9.710022.1.001.T.2.02S

Developers enter into service agreements with the CoT for each new township. In some cases the CoT requires upsizing or new services that will require repayment for additional capacity created in this way.

Region 5

none 2.2km of 355mm and 400mm diameter water pipe

Q4: Project measured according to the % expenditure for contributions towards township developments. Estimated at 30% expenditure for June 2017 - with a total expenditure of 70% in Qtr4.

Payment to Developers R5 000 000.

None None Developers enter into service agreements with the CoT for each new township. In some cases the CoT requires upsizing or new services that will require repayment for additional capacity created in this way.

Payment to Developers R5 000 000.

Yes

5,000,000

Target achieved

258

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget



(710023) Lengthening Of Network & Supply Pipelines

9.710023.1.016.W.7.GAR

The purpose of this project is to extend pipelines to areas where water connections are required, or areas without any pipe in the street reserve available to connect to. Pipes are also laid to areas where the water supply has become insufficient and the

Region 1

600m of water pipes were installed in Ga-Rankuwa for April 2017

Water pipes were installed in Ga-Rankuwa for May 2017 but was booked under 710026 since both IDP's are utilised for this project.

Site cleaning Q4: 300m water pipeline (upgrade)

36 m of water pipe has been installed for June 2017

The project were funding from 710023 and 710026, therefore more pipes have been installed than what was projected.

Penalties have been issued for late completion of the work.

400m water pipeline (upgrade)

A total 1336m of water pipes have been installed till 28 June 2017

Yes

1,000,000

Target achieved

259

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


problem can be solved by extending the supply pipe to the affected area.


(710026) Replacement Of Worn Out Network Pipes

9.710026.1.015.S

The purpose of this project is to replace sections of the existing water reticulation that has deteriorated to such an extend that it has become unserviceable.

City Wide

923m of water pipes were installed in Clubview and Hennopspark for April 2017

882m of water pipes were installed in Clubview and Hennopspark and 500m of water pipes were installed in Ga-Rankuwa for May 2017

550m water pipeline (upgrade) Q4: 1460m Water Reticulation pipes Upgraded

1372 m of water pipe has been installed for June 2017

The Ga-Rankuwa project was also funding from 710026, if those extra pipes that have been installed are added to 710026

No mitigations required

5965m Water Reticulation pipes Upgraded

A total 7679m of water pipes have been installed till 28 June 2017

Yes

R284 080 is a saving.

15,000,000

Target achieved

Utility Services: Wat

(710026) Replacement Of Worn Out

9.710026.1.016

The purpose of this project is to

City Wide

923m of water pipes were

882m of water pipes were installed

550m water pipeline (upgrade) Q4: 1460m Water

1372 m of water pipe has been installed

The Ga-Rankuwa project was also funding

none 5965m Water Reticulation pipes

A total 7679m of water pipes have

Yes

R284 080 is a saving.

1,000,000

Target achieved

260

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


er & Sanitation

Network Pipes

replace sections of the existing water reticulation that has deteriorated to such an extend that it has become unserviceable.

installed in Clubview and Hennopspark for April 2017

in Clubview and Hennopspark and 500m of water pipes were installed in Ga-Rankuwa for May 2017

Reticulation pipes Upgraded

for June 2017

from 710026, if those extra pipes that have been installed are added to 710026

Upgraded

been installed till 28 June 2017


Replacement, Upgrade, Construct Wwtw Facilities

9.710411.1.015

650,000


Replacement, Upgrade, Construct Wwtw Facilities

9.710411.1.016

11,817,700

261

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget



(710411A1) Sunderland RidgesWWTW new 30ML BNR

9.710411.1.015.

Bulk water supply

Region 4

Tender closure and administration compliance

'Finalize specification

Appointment of consultants Q4: Administration compliance, Technical Evaluation and appointment of consultant

Specification and TAR prepared

The project has been put on hold as there is no budget allocated in 2017/18 FY

Budget need to be allocated for both urgent upgrade work and construction of 50 Ml/d Module 6 to reduce pressure on the existing work and to accommodate future development

It is projected that 20% of the overall Civil structures, the Mechanical and Electrical works will be completed in this period. With an 80% expenditure in Qtr4.

Specification and TAR prepared

No

0

The project has been put on hold as there is no budget allocated in 2017/18 FY


(710411F) Baviaanspoort waste water treatment works

9.710411.1.016.

Upgrading of the Baviaanspoort to the required 66ML Capacity

Region 6

15% Design Stage 15% WULA Application 20% Repair work to existing module

'15% Design Stage '20% WULA Application

15% Design Stage 20% WULA Application 30% Repair work to existing module Q4: 90% Design Stage 70% WULA Application

3% Design Stage '10% WULA Application

The approved budget for the project for the 3 years on the MTREF is only about R53

Sufficient budget should be made available.

90% Design Stage completed and 70% WULA application completed. and complet

98% Design Stage 50% WULA Application

yes

0

T

262

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


90% Repair work to existing module

million, while the estimated project budget is about R530 million. Other options has to be explored as the project has no sufficient budget.

ion of repair work to existing module


(710411I) Temba/Babelegi WWTW Upgrade/Extension

9.710411.1.016.

Cable damages -insurance claim

Insurance paid and cables replaced. Civil and Mechanical contractor instructed to return on site to complete their remaining scope of work.

Q4: Cable damages -insurance claim

Insurance paid and cables replaced. Civil and Mechanical contractor on site completing their remaining scope of work.

Delays are experienced by the EOH contractor with the insurance claim for the theft of cables on site. The contractor was instructed to provide feedback on their

The contractor was instructed to provide feedback on their insurance claim. All the other contractors are instructed to be visible on site in

Insurance paid and cables replaced. Civil and Mechanical contractor planing to go back on site to complete their remaining scope of work.

Yes

0

Delays due to the insurance claim for the theft of cables on site.

263

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


insurance claim.

preparation of testing and commisioning.


Refurbishing of Water Networks and Backlog Eradication

9.710878.2.005

13,101,

442


Refurbishing of Water Networks and Backlog Eradication

9.710878.2.015

13,800,

000


(710878C) Mabopane water reticulation and bulk pipeline

9.710878.2.005

Upgrading of a feeder bulk pipeline and construction of Valve Chambers linking the 3 reservoi

Region 1

Construction work complete

Buzaphi Kagom JV completed with their works, pipe installed and tested. Kamo is still onsite completei

Project completed Q4: Project Hand-over

Project completed

Cash-flow and community challenges experienced by Kamo construction is the cause of delays on site.

The contractor is advised to concider ceding the remaining works to a capable

Completion of Mabopane water reticulation and bulk pipeline

Project completed

Yes

6,970,1

07

Target achieved

264

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


rs Mabopane Main, Mabopane and Mabopane Central

ng their scope.

The contractor is advised to concider paying all outstanding subcontractors' invoices and cede the remaining works to a capable contractor.

contractor.


(710878E) Soshanguve DD bulk water pipeline (emergency pipeline to Stinkwater)

9.710878.2.005

Installation of bulk supply pipeline for Soshanguce Dd Reservoir to Stinkwater Extension 2-8

Region 2

90% construction of chambers complete

78% of chambers constructed 100% pipes installed 0% pipe tested

Q4: Construction work complete

80% project completed

Contractor's poor performance has led to the project not being completed on the due cmpletion date of 26 June 2017. A nominated sub-contractor to be

The department to ensure that contractor with suitable experience and csahflow are appointed. Constant meeting with all

Installation of 1.4 km of bulk water pipeline

80% project completed against 100% testing of pipleine

Yes

n/a 18,300,

000

Slow progress by contractor

265

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


appointed to complete the project. A meeting between contractor and sub-contracor to take place on 3 July 2017 to discuss way forward.

community stakeholders to prevent possible disruptions before they occur.


(710878RM) Ramotse-Marokolong waterborne sanitation

9.710878.2.005

Installation of waterborne sanitation services Ramotse and Marokolong

Region 2

The appointment of the Professional Service Provider(Consulting Engineers) has been completed.

None Q4: Perusal and correction of the Preliminary Design Report.

Appointment of Professional Service Provider(Consultants)

The design phase of the project cannot commence due to the unavailability of the approved lay-out plans

The availing of the approved lay-out plans must be accelerated Housing Department.

Approval of inception report

Appointment of Professional Service Provider(Consultants)

Yes

0

The design process cannot commence due to the delay by the inavailability of approved Gene

266

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


ral Layout Plans.


(710878T) Temba Water Purification Plant Extension

9.710878.2.005

The extension and upgrading of the Temba Water Purification Plant to improve water quality and to provide adequate water supply capacity to facilitate the backlog eradication in the Northern areas of Tshwane and the

Region 2

Apron Slabs completed at the Decanter Building, at the Settling tanks brickwork was completed and installations of baffle plates. At the DAF 50% of installation of pipework was achieved.

The structural of the inlet tower was completed only mechanical is outstanding. At Kudube Dam all concrete walls were completed and at the raw water pump station the brickwork is also completed.

3% testing of civil structures, electrical and Mechanical Equipment Q4: 98% overall completion

The structural of the inlet tower was completed only mechanical work is outstanding. At Kudube Dam all concrete walls were completed and at the raw water pump station the brickwork is also completed.

The contractor is behind schedule and the program has been revised for him to catch up.

Liquid air service provider has to be appointed without any further delays.



Yes

237,519

,944

The contractor is behind schedule

267

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


Greater Temba area. Upgrading of the Temba Purification plant from 60Ml/day to 120Ml/day


(710878Z) Garankuwa water bulk pipeline

9.710878.2.005

All pipes installed and tested. Outstanding fittings delivered onsite.

All pipes installed and tested. Outstanding fittings delivered onsite. Rand water and 2 reservoir connections in planning.



Cash-flow and community challenges by both contractors were the cause of delays on site. Both contractors ceded the remaining works which resulted in progress on site.

Rand Water and ODI Water were invited to a meeting to discuss and plan the switch over process.


Yes

4,543,6

09

Cash-flow and community challenges

268

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget



(710878EK) Ekangala Block A sewer reticulation and toilets

9.710878.2.005.

Construction of Sewer Lines and toilets

Region 7

Project completed.

Project completed.

Appointment of contractor Q4: Project completion, appointment of consultant and contractor.

The contractor completed the defects corrections for all the sections.

The final CCTV is still being done, therefore practical completion could not be issued.

The project will only complete in the next financial year.

Installation of 33 000m of pipe and 912 toilets structures.

The contractor completed the defects corrections for all the sections.

Yes

6,128,3

08

Target achieved


(710878EK) Ekangala Block A sewer reticulation and toilets

9.710878.2.015

Construction of Sewer Lines and toilets

Region 7

The cleaning and CCTv for section 8 and 9

The CCTV and cleaning is 100% complete

Q4: Appointment of contractor

Project has been completed

no variance

none Installation of 33 000m of pipe and 912 toilets structures.

Yes

2,659,0

01



9.710878.2.015

The extension and upgrading of the Temba Water Purification Plant to improve water quality and to provide adequate water

Region 2

Apron Slabs completed at the Decanter Building, at the Settling tanks brickwork was completed and installations of

The structural of the inlet tower was completed only mechanical is outstanding. At Kudube Dam all concrete walls were complete

Q4: 2% testing of civil structures and Mechanical Equipment's

The structural of the inlet tower was completed only mechanical work is outstanding. At Kudube Dam all concrete walls were complete


Liquid air service provider has to be appointed without any further delays.



Yes

28,640,

999

The contractor is behind schedule

269

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


supply capacity to facilitate the backlog eradication in the Northern areas of Tshwane and the Greater Temba area. Upgrading of the Temba Purification plant from 60Ml/day to 120Ml/day

baffle plates. At the DAF 50% of installation of pipework was achieved.

d and at the raw water pump station the brickwork is also completed.

d and at the raw water pump station the brickwork is also completed.



9.710878.2.016

The extension and upgrading of the Temba Water Purificat

Region 2

Apron Slabs completed at the Decanter Building, at

The structural of the inlet tower was completed only mechanic

Q4: 2% testing of civil structures and Mechanical Equipment's

The structural of the inlet tower was completed only mechanic

The contractor is behind schedule and the program has been revised

Liquid air service provider has to be appointed without


The contractor is behind schedule and the program has been revised

Yes

11,182,

300

270

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


ion Plant to improve water quality and to provide adequate water supply capacity to facilitate the backlog eradication in the Northern areas of Tshwane and the Greater Temba area. Upgrading of the Temba Purification plant from 60Ml/day to 120Ml/day

the Settling tanks brickwork was completed and installations of baffle plates. At the DAF 50% of installation of pipework was achieved.

al is outstanding. At Kudube Dam all concrete walls were completed and at the raw water pump station the brickwork is also completed.

al work is outstanding. At Kudube Dam all concrete walls were completed and at the raw water pump station the brickwork is also completed.

for him to catch up.

any further delays.

for him to catch up.

271

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget



Replacement and Upgrading: Redundant Bulk Pipeline Infrastructure

9.711335.1.015

0


Upgrade of the Moreleta Bulk Water Pipeline

9.711335.1.015

The upgrading and repair of the feeder main Valve Chamber and related pipework

Region 6

None None 600m water pipe installation Q4: None

none The project has been postpone to the 2017/18 financial year due to the issues that were encountered with panel appointments.

'The project has been postpone to the 2017/18 financial year due to the issues that were encountered with panel appointments.


Yes


2,600,000


272

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget



(711335P) Heights Iscor Feeder

9.711335.1.015.3.P.C5A

The upgrading and repair of the Iscor feeder main Valve Chamber and related pipework

Region 3

Design Development Report

Provisional approval of the detail design

Tender closed Q4: Table tender to BSC, Tender advertised & tender closed

Provisional approval of the detail design

Awaiting for final approval of the detail design by the department.

Daily follow-ups with the Department (Bulk Water) for the approval of the detail design.

Tabling of tender completed

Awaiting for final approval of the detail design by the department.

No

0

Delays in the final approval of designs by department


(711335N) Garsfontein pipe reinforcement

9.711335.1.015.E.N

Tie-ins at Waverly, Parkmore, Genl. Louis Botha avenue and Rubenstein.

Region 6

Project completion

Project complete

Q4: Project Complete

The project has been completed

None None Completion of all tie-ins and completion of project.

Project has been completed

Yes

None 3,092,6

74

Target achieved


(711335D) Bulk Water Pipeline Wonderboom

9.711335.1.015.N

Installation of Wonderboom/Rooiwal Bulk Water Supply pipeline

Region 2

3%progress

4% progress

Q4: Project Complete

8% complete

Although the contractor has allocated sufficient resources to the project, the delays were

'The supplier has delivered most of the fittings, so the project will progress as

Complete installing 30 m length pipeline;100% Installation installation of fittings;

Overall project is 96% complete with Pipeline Installation is 95% (1000 bends) complete, Fittings is

No. target was 100%

9,833,0

00

Delays experienced in manufacturing and coating of

273

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


experienced in manufacturing and coating of fittings.

planned.

100% testing

60% complete, Cleaning of pipelines – 90% complete, Testing is planning phase, Concrete work – 50%

fittings.


(711542) Information Management system (upgrading of Ibis software) (Water demand management) (City wide)

9.711542.1.

The Development a new Maintenance Management System

City Wide

3% Development of Software

6% Development of Software for May 2017

5% Development of Software Q4: 20% development

Development practically completed

The development is practically completed, with a few items that still needs to be tested by CoT personnel.

Depot personnel will need to run the new system together with the old system in order to test all the required outputs.

68% The Development a new Maintenance Management System

Development practically completed

Yes

9,000,0

00

Target achieved

Utility Services: Water & Sani

(712124) Establishment of Water Distribution Depots

9.712124.1

Establishment of Water Distribution Depots

City Wide

The BPJ memo for allocation the project through

The BPJ memo for allocation the project through CB90/2014 has


None The project will be done under OPEX from now on

none Completion of Water Distribution Depots

none no

none 4,000,0

00

The appointment of the contractor was

274

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


tation

CB90/2014 has been submitted for approval

been submitted for approval

therefore the water depot is handling it.

delayed due to cancellation of the consultant appointment


Reservoir

Extensions

9.712534.1

.015

1,100,0

01


(712534J) New Klipgat Reservoir

9.712534.1.001.S.J.C2A

New reservoir

Region 1

The contractor is busy with the 8th of 9 lifts of the reservoir.

Lift 8 of 9 lifts was completed after a month of delay, at lift 9 the inside shutters have been completed and the steel fixing complete

Defect liability period Q4: Defects Liability

70% overall progress, all lifts have been completed and the shatters have been removed. The contractor is busy with

Delays were due to the Contarctor being very slow due to the disturbance from the Local Emerging Contractors which resulted

Meeting was convened between the stakeholders and issues were resolved, now the Contractor

Completion of new Klipgat Reservoir

70% overall progress, all lifts have been completed and the shatters have been removed. The contractor is busy with

no

11,430,

489

Disruptions from local sub-contractors delayed progress on site

275

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


d all around.

scaffolding for the roof structure and steel fixing for the remaining columns. The floor has been fixed and it has passed specifications.

in the floor slab of the reservoir not meeting the COT specifications and was rejected.

needs to follow the program.

scaffolding for the roof structure and steel fixing for the remaining columns. The floor has been fixed and it has passed specifications.


(712534E) Installation of telemetry, bulk meters and control equipment at reservoirs (City Wide)

9.712534.1.015

Upgrading of reservoirs

City Wide

Control Room installations

Reservoir Systems installed

Installation of data loggers Q4: Installation of data loggers for flow control valve chambers

No variance

none Installation of data loggers for flow control valve chambers

Completed

Yes

none 5,000,0

00

Target achieved


(712534D) Mooikloof Reservoir

9.712534.1.015.E.D.C4A

The construction of a 15Ml/day reservoir.

Region 6

Project onhold due to insufficient budget in the next

Project onhold due to insufficient budget in the next financial year.

Bulk earthworks 30% Q4: Site Establishment, and construction kickoff

'Project onhold due to insufficient budget in the next financial year.

No variance

none Site Establishment, and construction kickoff

'Project onhold due to insufficient budget in the next financial year.

No

0

'Project onhold due to insufficient budget in

276

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


financial year.

the next financial year.


(712534U) Grootfontein Water Reservoir, tower and pipework

9.712534.1.015.E.U.C4A

New reservoir

Region 6

None None Q4: Tender award

Tender Advertisment Request and Bid Specification complete and captured on e-procurement.

The tender process is on hold due to the unavailability of funding for the project in the next coming 3 years.

The project should be allocated budget in the coming next financial years.

Contractor's Site Establishment and 50% earth works

Tender Advertisment Request and Bid Specification complete and captured on e-procurement.

no

0

The tender process is on hold due to the unavailability of funding for the project in the next coming 3 years.


(712534A) Annlin Reservoir Extension

9.712534.1.015.N.A.O4B

Expansion of Reservoir

Region 2

4%progress

4% progress


3% progress

The contractor's rate of progress is very slow, the project has been put on penalties

Overall project is 95% complete: Landscaping is 80% complete,

Completion of reservoir

A specialist contractor was subcontracted by the main contractor to repair and

No

8,369,5

12

Slow progress by contractor

277

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


Fencing 100% complete, Mass Earthworks 100% complete, Construction (Water Reticulation and Water mains) 99% complete, Testing (Water Reticulation and Water mains 100% complete, Gravel Pavement Layers 100% complete Guardrails 100%

install the reservoir bandage

278

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


complete, False work, Formwork and Concrete finish 95% (Connection box) complete, Steel Reinforcement for Structures 100% complete, Concrete 95% (Connection box) complete, Concrete Reservoirs (Sundry Works) 100% complete, Building

279

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


Work90% (connection box – BPT door)Nominated Sub-Contractors 80% (Ritz) complete


(712534W)

9.712534.1.015.N.W.17N

New Reservoir and Water Tower

Region 1

Project has no funding in the 2017/18 FY and therefore is on hold.

None 30% completion of repair work to reservoir and steel tank. Q4: 100% completion of repair work to reservoir and steel tank.

No physical work on site. However, the Memo requesting project allocation is now at SCM awaiting them to allocate the project to one of the service providers from Housing Panel.

There was a delay with indetifying the correct panel to use for the project. Delays were encountered due to the lengthy process of appointing the contractor through regulatio

Sufficient budget should be made available in 2017/18 for the project to be completed. SCM to fast track the project allocation process.

Installation of water pipeline, valve chambers, house connections, water meters and yard taps

There was a delay with indetifying the correct panel to use for the project. Delays were encountered due to the lengthy process of appointing the contractor through regulation

no

228,895

Delays were encountered due to the lengthy process of appointing the contractor through regulation 32

280

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


n 32, the department has now opted to utilize the recently approved panel of contractors from Housing Department for the finishing of the outstanding works. The PBJ is now at SCM awaiting them to allocate the project to one of the service providers from Housing Panel.

32, the department has now opted to utilize the recently approved panel of contractors from Housing Department for the finishing of the outstanding works. The PBJ is now at SCM awaiting them to allocate the project to one of the service providers from Housing Panel.

281

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget



(712534C) Doornkloof Reservoir

9.712534.1.015.S.C.C3A

New reservoir

Region 4

The tender was advertised on 18 April 2017.

Tender Evaluation

5% Reservoir Construction Q4: 8% Reservoir Construction

'Tender Evaluation

'Revision of tender document and role mapping/ e-procurement delayed the progress.

Non expenditure of R 1 100 000 will be transeferred to project : 712534A Annlin reservoir extension.

8% Reservoir Construction

Tender evaluation

no

0

'Revision of tender document and role mapping/ e-procurement delayed the progress.


Water

Conservatio

n and

Demand

Managemen

t

(Installation

of water

meters

Steve

9.712896.1

.005

17,000,

000


Utility Services: Water & Sani

RE - AGA -

Tshwane

9.712970.1

.005

11,257,

346

Programme

282

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


tation


Midas - 580 housing units - water provision

9.712970.1.005

Formalisation : Provision of Water and Sanitation services

Region 1

Project specification and detail designs completed and approved.


Installation of water pipeline, valve chambers, house connections, water meters and yard taps Q4: Site establishment, installation of water pipeline, valve chambers, house connections, water meters and yard taps


Project allocation could not be done due National Treasury directive and an instruction has been given to the consultant to prepare a tender documents, for a normal tender process.

Constant communication with community leaders in briefing them with all the construction processes.

Installation of sewer pipeline, manholes and house connections


no

275,507

Project allocation could not be done due National Treasury directive and an instruction has been given to the consultant to prepare a tender documents, for

283

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget




Midas - 580 housing units - sewer provision

9.712970.1.005


Region 1



installation of sewer pipeline, manholes and house connections Q4: Site establishment, installation of water pipeline, valve chambers, house connections, water meters and yard taps


Project allocation could not be done due National Treasury directive and an instruction has been given to the consultant to prepare a tender documents, for a normal tender process.




no

646,600

Project allocation could not be done due National Treasury directive and an instruction has been given to the consultant to prepare a tender docu

284

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


ments, for a normal tender process.


Soshanguve South Ext 1 (Plot 67) - 398 housing units - water provision

9.712970.1.005


Region 1

Testing of pipeline

The overall progress is at 79% complete


The overall progress is at 79% complete

The project has experienced various community disruptions. The matter of community disruption will be excalated to the MMC

The matter of community disruption will be excalated to the MMC


The pipe installation is 83% complete. A total of 292 water connection were completed.

Yes

2,303,0

11

Target achieved


Soshanguve South Ext 1 (Plot 67) - 398 housing units - sewer provision

9.712970.1.005


Region 2

Project completed

160m sewer pipe installed, 5 main holes completed


160m sewer pipe installed, 10 main holes completed

The project has experienced various community disruptions and hard rock

The matter of community disruption will be excalated to


Blasting is 100% completed, 70 manholes completed, internal 250Ø bulk sewer pipe

Yes

2,543,5

85

Target achieved

285

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


conditions. The matter of community disruption will be excalated to the MMC

the MMC

installation is at 96%, 160Ø Network is at 80% and external bulk sewer upgrades is at 0%. Total physical progress is at 43%


Kudube Unit 8 - 1784 Housing Units - Water Provision

9.712970.1.005


Region 2

Site establishment, setting out. Installation of water pipeline, valve chambers, house connections, water meters and yard taps

Site establishment. Sourcing of labours, subcontractors and 1200m of 315 diameter installed.

Q4: Installation of water pipeline, valve chambers, house connections, water meters and yard taps

Site establishment. Sourcing of labours, subcontractors and 2300m of 110mm, 1400m of 160mm and 1160m of 315mm diameter installed.

Late appointment of the contractor caused the delay in terms of establishing site and commencing with work on site.



Site establishment. Sourcing of labours, subcontractors and 2300m of 110mm, 1400m of 160mm and 1160m of 315mm diameter installed.

Yes

10,595,

400

Late appointment of the contractor caused the delay in terms of establishing site and commencing with

286

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


work on site.


Hammanskraal Ext 10 - 2767 Housing Units - Water Provision

9.712970.1.005


Region 2

Preliminary Design Report


installation of water pipeline, valve chambers, house connections, water meters and yard taps Q4: Site establishment, installation of water pipeline, valve chambers, house connections, water meters and yard taps


There was a delay with regards to the design route for the Bulk Sewer. The CoT and the consultant agreed on the meeting held on 24 May 2017 to proceed with the existing design route. The consultant is finalising the detail designs currently at 80%

No impact on allocated budget. Furthermore the project will be co-funded by Housing and Human Settlement together with Water and Sanitation.



Yes

544,408

There was a delay with regards to the design route for the Bulk Sewer

287

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


complete.


Hammanskraal Ext 10 - 2767 Housing Units - Sewer Provision

9.712970.1.005


Region 2





There was a delay with regards to the design route for the Bulk Sewer. The CoT and the consultant agreed on the meeting held on 24 May 2017 to proceed with the existing design route. The consultant is finalising the detail designs currently at 80%

No impact on allocated budget. Furthermore the project will be co-funded by Housing and Human Settlement together with Water and Sanitation.



Yes

1,094,4

45

There was a delay with regards to the design route for the Bulk Sewer

288

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


complete.


Hammanskraal Ext 2 Stand 3505 - 61 Housing Units - Water Provision

9.712970.1.005


Region 2

Appointment of a Service Provider (Contractor )


installation of water pipeline, valve chambers, house connections, water meters and yard taps Q4: Site establishment, installation of water pipeline, valve chambers, house connections, water meters and yard taps

Tender Document is complete, and the TAR was circulated for signatures.

This project cannot proceed due to a directive from National Treasury and no provision is made for budget in the 2017/18 financial year.

A contractor will be appointed by following the conventional open tender procedure. Tender Document is complete, and the TAR was circulated for signatures due by 30 June 2017.



Yes

99,444

This project cannot proceed due to a directive from National Treasury to appoint through open tender and no provision is made for budget in the 2017/

289

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


18 financial year.


Hammanskraal Ext 2 Stand 3505 - 61 Housing Units - Sewer Provision

9.712970.1.005


Region 3 & 4






A contractor will be appointed by following the conventional open tender procedure. Tender Document is complete, and the TAR was circulated for signatures due by 30 June 2017.

Installation of water and sewer pipeline


Yes

71,861


290

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


18 financial year.


Atteridgeville Ext 16 - Bulk water plus outfall sewer to service future stands

9.712970.1.005


Region 3

Site establishment, installation of water and sewer pipeline, manholes Q4: Installation of water and sewer pipeline, manholes



Constant communication with community leaders and local emerging contractors in briefing them with all the construction processes.

Installation of water pipeline, valve chambers, house connections, water meters, yard taps and testing of pipeline


Yes

480,000


291

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


18 financial year.


Atteridgeville Ext 19 - Water network

9.712970.1.005


Region 3

Practical Completion and Handover

Testing of pipeline(110Ø)=733.8m, Laying of 20mm HDPE pipes to connect to the Toilet and Yard Taps from the water meters= 1272.5m

Q4: Project Completed


The contractor is currently waiting for fittings to be delivered.

The toilet structures and toilet systems will done when the stands are handed over to the beneficiaries

Installation of sewer pipeline, manholes & house connections and testing of pipeline


Yes

15,000,

000

Target achieved


Atteridgeville Ext 19 - Sewerage network

9.712970.1.005


Region 5

Practical Completion and Handover

Air Testing of pipeline=3135.09m,CCTV Inspection=5630.3m

Q4: Project Completed


Most of the toilet structures were vandalized and it was resolved that the toilet structures and toilet systems will done

The contractor will be put on terms to complete the project



Yes

26,000,

000

Target achieved

292

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


when the stands are handed over to the beneficiaries


Kameeldrift 174 & 175 - 356 Housing Units - Sewer Provision

9.712970.1.005


Region 5

Preliminary report



Preliminary report approved

Preliminary report was had to be revised to comply with planning specification

A follow up will be made with the consultant to fast track completion of planning documents



No

140,000

The consultant has delayed in finalizing the overall service design for the project.


Kameeldrift 174 & 175 - 1000 Housing Units - Water Provision

9.712970.1.005


Region 6

Preliminary report


installation of water pipeline, valve chambers, house connections, water meters and yard taps Q4: Site establishmen


preliminary report was had to be revised to comply with planning specification

A follow up will be made with the consultant to fast track completion of plannin



no 318,160

The consultant has delayed in finalizing the overall servic

293

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


t, installation of water pipeline, valve chambers, house connections, water meters and yard taps

g documents

e design for the project


Mahube Valley Ext 15 - Sewer provision for 2 353 stands

9.712970.1.005


Region 6

No progress

No progress

Installation of sewer pipeline, manholes and house connections Q4: Site establishment, installation of water pipeline, valve chambers, house connections, water meters and yard taps

No progress

The layout has not been approved and housing still needs to relocate the people.

The sewer project does not have a budget in the 2017/18 fy. Therefore, the project will only be done in the financial year where budget is allocated.


none No Request funds in the MTREF.

6,000

The layout has not been approved and housing still needs to relocate the people.

Utility Services: Wat

Mahube Valley Ext 15 - Water provision

9.712970.1.005

Formalisation : Provision of Water

Region 6

No progress

No progress

installation of water pipeline, valve chambers,

No progress

The layout has not been approved

The project does not have a

Installation of sewer pipeline,

none No Request funds in the MTREF. 0

The layout has not been

294

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


er & Sanitation

for 2 353 stands

and Sanitation services

house connections, water meters and yard taps Q4: Site establishment, installation of water pipeline, valve chambers, house connections, water meters and yard taps

and housing still needs to relocate the people.

budget in the 2017/18 fy. Therefore, the project will only be done in the financial year where budget is allocated.

manholes and house connections

approved and housing still needs to relocate the people.


Mamelodi Ext 11 (Mahube Valley) - Sewerage network line for 1 859 stands

9.712970.1.005


Region 6

none none Installation of sewer pipeline, manholes and house connections Q4: Site establishment, installation of water pipeline, valve chambers, house connections, water meters and yard taps

No progress

The appointment through panels was stopped by National Treasury which affected the appointment of the contractor.

Request funds in the MTREF.


None No

Request more funds 0

The appointment through panels was stopped by National Treasury which affected the appointment of

295

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


the contractor.


Mamelodi Ext 11 (Mahube Valley) - Water network link for 1 859 stands

9.712970.1.005


Region 6

none none Installation of water pipeline, valve chambers, house connections, water meters and yard taps Q4: Site establishment, installation of water pipeline, valve chambers, house connections, water meters and yard taps

No progress


Request funds in the MTREF.

Completion of outfall sewer pipeline

none no

requast more funds

3,343,106



Nellmapius Ext 24 - Outfall sewer pipeline for 2 640 stands

9.712970.1.005


Region 6

none The pipe installation is 100% and the toilet top structures are 99.9%

Q4: None Completed all the oustanding toilet top structures.

no variance

none Bulk water supply pipeline

Completed all the oustanding toilet top structures.

Yes

1,400,0

00

Target achieved

296

Department

Project Name

Project Number

Project objective

Region






Mitigation plan





Adjusted Budget


completed.


Mamelodi Ext 11 - Upgrading of bulk water supply pipeline

9.712970.1.005


none The last tie-in was completed.

Q4: None Completed all the works and issued practical completion and completion certificate.

no variance

none Complete all the entire scope of works.

completed the entire scope of works.

yes

1,767,7

17

Target achieved

297

ANNUAL REPORT 2016/17

SIGN - OFF DATE SIGNATURE

Acting Chief Executive Officer (Amolemo G. Mothoagae)

ANNEXURE F 298

Table of Contents GLOSSARY OF TERMS ..................................................................................... Error! Bookmark not defined.

ACRONYMS ................................................................................................................................................... 5

PURPOSE ........................................................................................................ Error! Bookmark not defined.

CHAPTER 1 FOREWORD OF THE CEO AND EXECUTIVE SUMMARY............................................................... 6

1.1 FOREWORD OF THE CEO ............................................................................................................... 6

1.2 EXECUTIVE SUMMARY .................................................................................................................. 9

CHAPTER 2 GOVERNANCE ..................................................................................................................... 14

2.1 CORPORATE GOVERNANCE......................................................................................................... 14

2.2 LEGISLATIVE BACKGROUND PRESCRIBING THE FUNCTIONS OF THE ENTITY ............................. 15

2.2.1 FUNCTIONING OF THE BOARD AGAINST THE WORK PLAN ................................................ 16

2.2.1.1 PROJECTS COMMITTEE ....................................................................................................... 16

2.2.1.2 RISK MANAGEMENT AND INTERNAL CONTROLS ................................................................ 16

2.2.1.3 ENTITY’S SUPPLY CHAIN PROCESSES AND PROCEDURES .................................................... 21

CHAPTER 3 SERVICE DELIVERY PERFORMANCE .......................................................................................... 24

3.1 PERFORMANCE AGAINST SCORECARD FOR THE HOUSING COMPANY TSHWANE FOR 2016/1724

3.1.1 Performance Overview ....................................................................................................... 25

3.1.2 Performance Assessment (Scorecards) ............................................................................... 29

3.1.3 Performance Improvement Measures ................................................................................ 30

CHAPTER 4 ORGANISATIONAL DEVELOPMENT PERFORMANCE ........................................................... 31

4.1 THE HCT ORGANOGRAM AND STAFF COMPONENT ................................................................... 31

4.2 MANAGING THE ENTITY’S WORKFORCE ..................................................................................... 32

4.2.1 Totals on injuries, sicknesses, suspensions, capacity building, employee expenditure, skills

development and training ..................................................................... Error! Bookmark not defined.

4.2.2 Employee expenditure ........................................................................................................ 32

4.2.3 THE HCT’S employee totals, vacancies turnover ................................................................ 32

4.2.4 EEA report on (Female positions, people with disabilities, ................................................ 32

4.2.5 No of approved positions, filled and vacancies .................................................................. 32

4.2.6 Highlights, challenges and interventions ............................................................................ 33

4.3 THE HCT’S TURN AROUND STRATEGY ON RECRUITMENT .......................................................... 33

4.4 DISCLOSURES.............................................................................................................................. 34

299

4.1.1 Disclosures concerning THE HCT ......................................................................................... 34

In order to ensure good governance practices, the entity is required to make financial disclosures.

Therefore; this section should discloses the remuneration packages of the entity’s executives for the

2016/17 financial year. ....................................................................................................................... 34

4.5 REMUNERATION AND ETHICS COMMITTEE ................................................................................ 34

4.6 DIRECTOR’S REMUNERATION ..................................................................................................... 34

4.6.1 Housing Company Tshwane Board of Directors ...................................................................... 34

4.7 HTC BOARD COMMITTEE MEETINGS 2016/17 FINANCIAL YEAR ................................................ 35

4.7.1 Board Committee Meetings 2016/17 Financial Year ........................................................... 35

4.8 MANAGEMENT OF LEAVE ........................................................................................................... 36

4.9 HUMAN RESOURCES .................................................................................................................. 36

5 FINANCIAL PERFORMANCE ................................................................................................................. 38

5.1 ENTITY’S FINANCIAL PERFORMANCE .......................................................................................... 38

5.2 SUMMARY OF THE ENTITY’S MTREF RESULTS FOR 2016/17 FY ................................................. 39

5.3 INTRODUCTION TO SPENDING AGAINST CAPITAL AND OPERATIONAL BUDGET ....................... 40

5.3.1 Capital budget ..................................................................................................................... 40

5.3.2 Operating budget ................................................................................................................ 41

5.3.4 Staff vs Contracted Services Expenditure ........................................................................... 41

5.4 REVENUE ..................................................................................................................................... 42

5.5 ASSETS ......................................................................................................................................... 43

5.6 EVENTS & INTERNATIONAL TRIPS ............................................................................................... 43

CHAPTER 6 AUDIT MATTERS .................................................................................................................. 38

6.1 INTERNAL AUDIT ......................................................................................................................... 44

6.1.1 Findings for FY 2015/16 ...................................................................................................... 44

6.1.2 Finding for FY 2016/17 ........................................................................................................ 44

6.2 AUDITOR GENERAL ..................................................................................................................... 49

6.2.1 Response to AG findings for FY 2015/16 ............................................................................ 50

APPENDICES ................................................................................................................................................ 54

National Treasury Circular 63: Appendices ................................................................................................. 54

CONCLUSION ............................................................................................................................................... 54

300

List Tables Table 1: Board of Directors ................................................................................................................................... 15

Table 2: HCT’s supply chain committees and functions ....................................................................................... 22

Table 3: HCT’s Bid Adjudication Committee Structure and non-compliance with the requirements .................. 23

Table 5: Table: THE HCT Board of Directors .......................................................................................................... 34

Table 6: Table: THE HCT Board Committee Meetings .......................................................................................... 35

Table 7: Human Resources Head count per unit .................................................................................................. 35

Table 8: Training and Development ...................................................................................................................... 35

Table 9: Leave Records ......................................................................................................................................... 36

Table 10: Staff movements ................................................................................................................................... 36

Table 11: Employee totals, vacancies and turnover ............................................................................................. 36

Table 12: Budget expenditure............................................................................................................................... 40

Table 13: Capital Projects expenditure ................................................................................................................. 40

Table 14: Opex budget per group ......................................................................................................................... 41

Table 15: Staff vs. Contracted Services Expenditure ............................................................................................ 41

Table 16: Table: Economic Activity (Not applicable the entity) ............................................................................ 43

301

ACRONYMS

Abbreviation Full Name

ARC Audit and Risk Committee

BBBEE Broad Based Black Economic Empowerment Act

BEE Black Economic Empowerment

CEO Chief Executive Officer

Constitution Constitution of the Republic of South Africa

CoT City of Tshwane

CSI Corporate Social Investment

EE Employment Equity

EEA Employment Equity Act

THE HCT Housing Company Tshwane

HDI Historically Disadvantaged Individuals

IDP Integrated Development Plan

LRA Labor Relations Act

MFMA Municipal Finance Management Act

MSA Municipal Systems Act, 2000 (Act No. of 2000)

NDHS National Department of Human Settlements

OHSA Occupational Health and Safety Act

SCM Supply Change Management

SDA Service Delivery Agreement

SDBIP Service Delivery and Budget Implementation Plan

SHRA Social Housing Regulatory Authority

SLA Service Level Agreement

302

CHAPTER 1 FOREWORD OF THE CEO AND EXECUTIVE SUMMARY

1.1 FOREWORD OF THE CEO

General Performance

HCT has seen a generally commendable improvement in the performance of it’s operations in the period under

review. Although capacity constraints still remain a challenge, the entity has made remarkable improvement in

the implementation of its catalytic projects. The Townlands project has broken ground and currently under

implementation. Timberlands is at advanced planning stage and will finalise the detailed designs in the new

financial year. Chantelle Extension 39 is also under implementation with internal reticulation of infrastructure.

Although it advanced to procurement stage, the Sunnyside project could not proceed with implementation due

to financial non-viability. There are three other Social Housing projects in the pipeline which are under the

planning by CoT Department of Housing and Human Settlements that will be handed over to HCT for

construction upon completion of planning. As much as there is remarkable improvement in HCT’s performance,

HCT has not achieved during the year under review

Operations

HCT is continuously and systematically improving its operations in terms of policies, procedures, processes and

systems were developed or reviewed. A diagnosis of operational weakness was done and an operations

turnaround plan crafted. It is being implemented on an on-going basis. The existing procurement bottlenecks

were unblocked by strengthened the supply chain management unit, which included revision of the Supply

Chain Management Policy and appointing a Senior Supply Chain Officer. The Senior Supply Chain Officer

unfortunately resigned from his post in March 2017. However this gap has been closed by capacity deployed

from the City. Vacancy rate unfortunately increased during the third and fourth due to uncertainty on the future

of the entity. HCT has maintained 90% compliance to its turnaround times when dealing with complaints. A

collection rate varies from one building to the other, with all other buildings having achieved rental collection of

not more than 4.7%, except for Clarina. HCT is managing Clarina building on behalf of the City to house ex-

Schubart Park tenants in its court order obligation to provide short term alternative accommodation. The entity

has commenced with proper implementation of its debt collections mechanisms and non-paying tenants have

been handed over to debt collectors. Legal capacity has also been insourced to bring eviction orders where

applicable. Tenant Management has been improved through regular tenant meetings and a tenant newsletter.

In its efforts to improve property management standards in the stock managed by the HCT, a decision was

taken to upgrade cleaning and security staff into permanent staff. This was also to bring certainty in the

organization. The Council resolution to transfer affordable rental stock from the Coty to HCT is slowly but surely

being implemented. Only one out of the 3 planned buildings were transferred to HCT during the period under

review. This was due to violent resistance by tenants in the other targeted buildings. A total of 120 self-sufficient

elderly (SSEs) rental units to the HCT for management and the rest 284 SSEs will be managed by HCT

303

effective in 2017/18 financial year. HCT is improving in functions such as marketing of units, take-on of clients,

rental collection, and management of client relationship and terminating of the lease agreements.

HCT has prioritized compliance with MFMA, Municipal Systems Act, Social Housing Act and Rental Housing

Act. Cost-to-ratio is still high but once more rental units are added, this will begin to decline. Although declined,

effort is made to preferably procure from black businesses in line with our strategic objective of developing BEE

SMME’s.

HCT continues to engage with other Social Housing Institutions and benchmarking against them in improving of

its operations efficiencies. Social Housing in South Africa has been fraught with uncertainties pertaining to

income bands and Reconstruction Capital Grant (RCG) quantum. The economic climate also has an impact on

our tenants and cost of doing business. However, the Minister of Human Settlements recently approved the

increase of the income bands and the RCG. HCT will be able to traverse this climate and continue its growth

path.

Units under Management

HCT owns an affordable rental property, Eloff (95 units), manages a transitional accommodation property,

Clarina Estate (160 units) on behalf of the CoT and took over 120 self-sufficient elderly units from CoT during

the 2016/17 financial year. The entity strives to adhere to best practices of property management.

Risk Assessment

HCT adopted the Enterprise Risk Management (ERM) Strategy and Policy of the Shareholder CoT. A risk

register is updated annually, an action plan to address the risks developed and quarterly reports on the action

plan presented to the Finance, Risk and Ethics Committee before it is approved by HCT Board. HCT endeavors

to embed risk in all its operations. Employees are made aware of how to identify, monitor and mitigate risk in

their functional area of work.

Previous Financial Years Audit

HCT has been able, through MLAP, to address clear the audit findings and has reduced them by 50% from 26

in 2014/15 to 13 in 2015/16. 11 of these findings have been resolved and resolution of the other 2 is on-going.

This represents improvement and indication of the seriousness with which HCT treats the AG report.

The Year Ahead

In the light of the recent resolution by the shareholder that HCT will not be discontinued and will remain a going

concern, the HCT will prioritise the implementation of the following turnaround strategies:

Appointment of a new Board of Directors;

Filling of critical vacant positions;

Development of affordable rental housing strategy;

304

Implementation of performance management;

Upscaling of the delivery of social housing stock;

Increasing its property portfolio, in order to achieve a degree of financial sustainability; and

Improving collection of revenue rate in buildings that are currently experiencing low collection rate.

I would like to thank HCT Board of Directors for their ethical stewardship. A special thanks to the former

CEO, Mr. Anthony Ngcezula who resigned in February 2017 for playing a key role in the efforts to turn-

around HCT. Moreover, I would also like to convey gratitude to the management and staff of HCT who

continue to play a key role in the growth of HCT. Lastly, I would like to thank the shareholder for its

commitment to HCT continuous improvement.

Ms Amolemo G. Mothoagae Date: July 2017

Chief Executive Officer (Acting): HCT

305

1.2 EXECUTIVE SUMMARY

1.2.1 Background of the entity HCT was established as a section 21 company by the CoT to implement the City of Tshwane’s institutional/social housing programme as per the Housing Act, No 107 of 1997. The Housing Company Tshwane (HCT) is a municipal owned entity. The City of Tshwane (COT), its sole shareholder, established The HCT to develop and manage social housing, which is recognised as a pivotal tool in restructuring the city. The value proposition of The HCT is its ability to offer the CoT a flexible and efficient mechanism of accessing the social housing development opportunities that exist as result of the human settlements policy framework that has been developed in South Africa. The HCT also represents the platform that ensures the City stays focused on its agenda to offer accommodation to poorer communities who have been historically marginalised from the inner-city precinct’s and business development districts that have grown within the city. This document outlines the planning that will guide the growth and development trajectory of HCT over the financial year (2016/2017). It analyses the strategic context within which The HCT operates and articulates a strategic focus that is aligned to perform on its mandate and recognises the opportunities that currently exists toward making HCT the leading social housing institution in the CoT. In order to understand the overall objectives of the entity and to assess its ability to deliver on its promises, a vision, mission and the organizational structure of the entity needs to be understood. How are we organized? HCT is governed by an independent board of non-executive and executive directors, in terms of the Companies Act of 2008 (as amended), and related legislation such as Municipal Systems Act, Municipal Finance Management Act and Treasury Regulations. The company is bound by the City’s approved “reporting framework for municipal entities”, the Service Delivery Agreement (hereinafter referred to as “SDA”) concluded between HCT and CoT, and also abides by industry-specific legal and regulatory frameworks (e.g. the compliance and reporting regime of the Social Housing Regulatory Authority). HCT’s constitutional-statutory-regulatory framework for planning, operation and compliance is also defined by the applicable City of Tshwane by-laws, judgments of the High Court, the Supreme Court of Appeal, and the Constitutional Court insofar as they relate to social housing.

306

1.2.2 Functions of the entity and environmental overview

1.2.3 Summary of financial operating results The overall financial performance for the financial year period resulted into an accumulated surplus of R38

million. This was attributed to the capital grant expenditure on Townlands project for the development of

1,200 Social Housing units. Below is the graphical presentation of operating results:

307

1.2.3.1 Operating revenue

Recorded variances from the budget were from revenue categories such as rental revenue, operational grant,

interest income, and other revenue and capital grant transfers. The variances can be explained as follows:

1.2.3.2 Rental income

For the financial period under review, the Company realized revenue of R5, 5 million as compared to the

budgeted amount of R5, 2 million. The variance is as a result of improved vacancy rate on buildings under

management, the budgeted vacancy rate was 5% and the entity has reduced it to 2%. The performance will be

maintained.

1.2.3.3 Operational grant

The Company recognized an operational grant of R30, 6 million as compared to the budgeted amount of R31,

5 million. The variance was attributed to certain tenders that were cancelled as they were not responsive in

terms of pricing. The grant is recognized once the entity has fulfilled the mandate as per the Service Delivery

Agreement between the City and the entity. The variance amounts to R912, 272.00. To mitigate cancellation

of tenders, proper costing and bench-marking exercise will be done once specifications are drafted and

completed.

-

20,000,000.00

40,000,000.00

60,000,000.00

80,000,000.00

100,000,000.00

120,000,000.00

Inco

me

Exp

end

itu

re

Surp

lus

Origional Budget

Actual

Variance

308

1.2.3.4 Interest Income

For the period under review, the Company earned interest income of R136, 000.00 as compared to the

budgeted figure of R76, 000.00. The variance of R60, 000.00 is attributed to interest charged to Clarina tenants

on outstanding levies payment. Clarina building is the complex transferred to Housing Company Tshwane by

the City. The complex is utilized to provide alternative accommodation to ex-Schubart Park residents. The

residents are charged levies of R566 per month for services offered by the entity i.e. security and cleaning. The

collection rate at Clarina building is very poor. As a mitigation strategy towards non-payment of levies,

residents have been handed over to Legal Service Providers for collection. In the new financial year

2017/2018, the report will be tabled to Council to rescind the Clarina Court order and introduce rental

payments.

1.2.3.5 Other Income

The Company realized revenue of R208, 000.00 as compared to the budget figure of R82, 000.00. The variance

of R126, 000.00 was as a result of a sale of tender documents for the advertised tenders. In the future, the

entity will include the sale of tender documents as a revenue stream.

1.2.3.6 Capital Grant Transfers The Company realized capital grant revenue of R27 million as compared to the budget figure of R70 million.

The variance of R43 million was as a result of non-performance on projects. However, most of these projects

did not perform due to various reasons.

Timberlands projects were put on hold due to objections from the community on the development of

Timberland Social Housing. These objections caused some delays in the completion of detailed design.

There has been a delay in the completion of internal reticulation for Chantelle project as the existing building

could not be demolished due to the current occupant refusing to vacate the building. Legal advice is sought

from Attorneys to evict the person. The contractor has been instructed to re-schedule the portion of works to

a later stage whilst the matter is been resolved.

On the Sunnyside project, the BAC recommended that the tender be re-advertised due to high cost and the

professional team is currently looking for alternative building technologies in order to reduce the high cost.

1.2.3.7 Operating expenses

1.2.3.7.1 Expenditure

Major expenditure variances were recorded from broad expenditure categories such as employee related

costs, remuneration of directors, finance charges, contracted services and other expenditures.

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1.2.3.7.2 Employee related costs The Company has spent R8 million as compared to the budgeted figure of R12 million. The variance of R4

million is due to the resignation of the CEO at the end of February 2017 and unfilled vacant positions as a

result of moratorium from City on the filling of vacant positions and the review process of entities. The review

process has now been finalised and the City has taken a decision to keep the HCT. The process to fill the

vacant positions will thus commence in the new financial year.

1.2.3.7.3 Remuneration Of Directors The Company has spent R1, 3 million on Directors’ remuneration as compared to the budgeted amount of R1,

4 million. Directors’ remuneration is lower than the budgeted amount due to a reduction in the number of

board and committee meetings hence the variance of R100, 000. Budget management will be maintained.

1.2.3.7.4 Debt Impairment The provision for debt impairment is higher as a result of Clarina tenants who are not paying their levies.

Tenants allocated at Clarina did not go through the normal HCT processes of affordability assessments as the

city needed to abide by a Court ruling to find alternative accommodation to ex-Schubart Park residents. A

majority of the residents are unemployed and of those who are employed some, do not earn enough to even

pay the levied amount hence the variance of R157 000.00. As a mitigation strategy towards non-payment of

levies, residents have been handed over to Legal Service Providers for collection. In the new financial year

2017/2018, the report will be tabled to Council rescind the Clarina Court order to enforce rental payments of

these residents.

1.2.3.7.5 Depreciation

For the period under review, the entity has recorded depreciation of R215, 000.00 as compared to the budget

amount of R376, 000.00. The variance of R161, 000.00 is as a result of reviewed useful life of assets.

1.2.3.7.6 Finance Charges

For the period under review, the entity has paid R 285, 000.00 as compared to the budgeted amount of R284,

000.00 in finance charges with the variance of R1, 000.00. This relates to the loan with National Housing

Finance Corporation (NHFC).

1.2.3.7.7 Contracted Services

The Company has spent R8, 8 million on contracted services as compared to the budgeted amount of R3

million. The variance of R5, 8 million was due to scope of work for pre-construction phase of Townlands

project whose size was increased from 475 Social Housing units to 1,200 Social Housing units. A mitigation

strategy was implemented by taking deviation report to the board for approval.

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1.2.3.7.8 Other Expenditures

The Company has spent R5,3 million on other expenditures as compared to the budgeted amount of R9,8

million. The variance of R4, 5 million was as a result of tenders being cancelled for not being responsive in

terms of pricing and less expenditure on maintenance of properties under management. To mitigate on

cancellation of tenders and less maintenance expenditure, proper costing and bench-marking exercise will be

performed once specifications are drafted and completed and property maintenance plan will be

implemented as per the budget.

CHAPTER 2 GOVERNANCE

2.1 CORPORATE GOVERNANCE The Board of Directors and Executives recognises and are committed to the principles of openness, integrity and accountability advocated by the King III Code on Corporate Governance. Through this process, shareholders and other stakeholders may derive assurance that the entity is being ethically managed according to prudently determined risk parameters in compliance with generally accepted corporate practices. By and large, the entity has complied with the Code in all respect during the year under review.

The Board of Directors has incorporated the City of Tshwane’s Corporate Governance Protocol (the Protocol) in its Board Charter, which inter alia regulates its relationship with the City of Tshwane as its sole member and parent Municipality. The Protocol is premised on the principles enunciated in the King Report for Corporate Governance for South Africa 2002 (“King III report”). The Board of Directors is committed to good corporate governance and ethics and has steadfastly consolidated its position in respect of adherence to the King III code on Corporate Governance. On-going steps are taken to align practices with the Code’s recommendations and the Board continually reviews progress to monitor and ensure improvement of Corporate Governance. During the year under review the HCT finalized its risk management reviews as well as reporting and compliance assessments in terms of the Companies Act and the Municipal Finance Management Act (MFMA). Company Policies and Operational Procedures were duly developed and some reviewed and approved for implementation by management. However, limited human resources continued to undermine the Company’s ability to comply with inter alia certain provisions of the Companies Act and the Municipal Finance Management Act (MFMA) in some areas.

311

Table 1: Board of Directors

Board Member Capacity: Executive/ Non-Executive

Race Gender Board Committee Membership

Mr. T.S Phetla Board

Chairperson

Black Male None

Adv. E.M Mphahlele Board

Member

Black Male Development & Projects Committee and Human

Resources & Remuneration Committee

Adv S.T Kholong Board

Member

Black Male Finance, Risk and Social Ethics Committee and

Development & Projects Committee

Adv A. Singh Board

Member

Indian Male Development & Projects Committee

Dr. W. Rowland Board

Member

White Male Human Resources & Remuneration Committee

Dr. M. Matlou Board

Member

Black Male Human Resources & Remuneration Committee and

Finance, Risk and Social Ethics Committee

Ms D.M Masilela Board

Member

Black Female Finance, Risk and Social Ethics Committee

2.2 LEGISLATIVE BACKGROUND PRESCRIBING THE FUNCTIONS OF THE ENTITY

The entity is governed by the following legislative prescripts and policies:

The Constitution of the Republic of South Africa (Act 108 of 1996) Section 26 & 29

The National Housing Act (Act 107 of 1997)

The Rental Housing Act (Act 50 of 1999)

The National Housing Code of 2009

The White Paper: New Housing Policy and Strategy for South Africa

The Social Housing Act (Act 16 of 2008)

The Comprehensive Plan for the Creation of Sustainable Human Settlements (BNG)

Prevention of Illegal Evictions and Unlawful Occupation of Land Act (Act 19 of 1998) (PIE)

312

The Municipal Structures Act (Act 33 of 2000)

The Municipal Systems Act (Act of 32 of 2000)

The Municipal Finance Management Act (Act 56 of 2003)

2.2.1 Functioning Of the Board against the Work Plan

2.2.1.1 Development and Projects Committee

The function of the committee is to:

Fulfill the functions of Bid Adjudication Committee, responsible for the Evaluation/Adjudication of

procurement of Bids/Tenders/Proposals for the procurement of goods and services in excess of R 200

000.00 in accordance with the frameworks for Supply Chain Management Framework and Treasury

Regulations issued in terms of Municipal Finance Management Act 56 of 2003.

Monitor the adherence to the internal control procedures, compliance plans and bid deliverables.

Development and monitoring of projects approved by the Board for the purposes of ensuring that the

Board fulfils its mandate and achieves its strategic goals and objectives set in its strategic plan and service

level agreements with its shareholders.

2.2.1.2 Risk management and internal controls

Effective risk management is integral to the Company’s objective of consistently adding value to the business.

Management is continuously developing and enhancing its risk and control procedures to improve the

mechanisms for identifying and monitoring risks.

Operating risk is the potential for loss to occur through a breakdown in control information, business

processes and compliance systems. Key policies and procedures which are in place to manage operating risk

involve segregation of duties, transaction authorization, supervision, monitoring and financial and managerial

reporting.

In order to meet its responsibility with respect to providing reliable financial information, the entity maintains

financial and operational systems of internal controls. These controls are designed to provide reasonable

assurance that transaction are concluded in accordance with management authority, that the assets are

adequately protected against material loss or unauthorized acquisition, use or disposal and that transactions

are properly authorized and recorded.

313

The system includes a documented organization structure, division of responsibility, established policies and

procedures, including a Code of Ethics to foster a strong ethical climate, which is communicated to the parent

Municipality. It also includes the careful selection, training and development of people.

Internal auditors monitor the operation of the internal control systems and report findings and

recommendations to management and the board of directors. Corrective actions are taken to address control

deficiencies and other opportunities for improving the system as they are defined.

The board, operating through the audit and performance committee of the City of Tshwane, provides

oversight of the financial reporting process and internal control systems. There are inherent limitations in the

effectiveness of any system of internal control, including the possibility of human error and the circumvention

or overriding of controls.

The City of Tshwane appointed a single Audit and Performance Committee servicing all City of Tshwane

departments and Municipal Entities during 2016/17.

The City of Tshwane’s Internal Audit Department has a specific mandate and independently appraises the

adequacy and effectiveness of the Company’s systems, financial internal controls and accounting records,

reporting its findings to local and divisional management and the auditor-general as well as the audit

committee.

The Internal Audit coverage plan is based on risk assessment performed at each operating unit. The coverage

plan is updated annually, based on the risk assessment and results of the audit work performed. This ensures

that the audit coverage is focused on and identifies areas of high risk.

The City of Tshwane’s Internal Audit department reports regularly to the Audit and Performance Committee.

The Auditor General is invited to all meetings of the Audit and Performance Committee.

The role of the Audit and Performance Committee is to assist the Boards of Municipal Entities by performing

an objective and independent review of the functioning of the organizations’ finance and accounting control

314

mechanisms. It exercises its functions through close liaison and communication with corporate management

as well as the internal and external auditors.

The Finance & Risk Committee operates in accordance with a written charter authorized by the City of

Tshwane as well as the other Entities of the Municipality, and provides assistance to the board with regards to:

a. Ensuring compliance with applicable legislation and the requirements of regulatory authorities;

b. matters relating to financial accounting, accounting policies, reporting and disclosures;

c. internal and external audit policy;

d. activities, scope, adequacy and effectiveness of the Internal Audit function and audit plans;

e. review/ approval of external audit plans, findings, problems, reports and fees;

f. compliance with the Code of Corporate Governance and Conduct; and

g. Compliance with Code of Ethics.

The Finance & Risk committee carried its responsibilities in terms of the charter during the year under review.

No changes to the charter were adopted during the year under review. Management has reviewed the

financial statements with the audit committee and the audit committee has reviewed them without

management or the external auditors being present.

The Finance & Risk committee considered the annual financial statements of the entity to be a fair

presentation of its financial position on 30 June 2017 and of the results of its operations, changes in equity

and cash flow (where applicable) for the period ended and thus in accordance with GRAP and the Companies

Act requirements.

315

RISK REGISTER

No Strategic and Business Objectives

Date Risk Identified

Risk Description Root Cause Consequence

1 Provide new Social Housing units on a sustainable basis

08-Jul-16 Inability to provide Social Housing units and affordable housing units

1. Delays in obtaining approved plans and designs from the relevant authorities.

2. Inadequate funding. 3. Lack of Capacity in Supply Chain/Procurement of

Professional Teams and Main Contracts.

1. Non accreditation from Social Housing Regulatory Authority (SHRA).

2. Poor service delivery. 3. Reputational damage.

2 Promote effective and efficient management of THE HCT and Social Housing Portfolio

08-Jul-16 Non-compliance with MFMA, Social Housing Act and Rental Housing Act

1. Non-adherence to Financial Procedures and Processes.

2. Non-adherence to Supply Chain Policy. 3. Non-existence of Finance and Supply Chain

templates 4. Critical Finance Posts not filled. 5. Non-adherence to Tenant and Property

Management Processes, Procedures and Good Practices.

6. Lack of knowledge and competence in rental and Social Housing by middle and senior managers.

1. Adverse audit opinions 2. Loss of accreditation from SHRA.

3 Strive for Financial sustainability by 2019

08-Jul-16 Inadequate levies and rental revenue.

1. Delay in construction of Social Housing projects in order to increase number of Greenfields units.

2. Delay in transfer of rental stock from CoT to THE HCT in order to increase number of Brownfield’s units

3. Poor levies collection by THE HCT because of low levies payment rate by Clarina residents.

1. Over-reliance on CoT Operational Grant.

2. Non-achievement of breakeven point.

4 Promote sound governance 08-Jul-16 Lack of IT governance 1. The HCT Board has not been responsible for IT Governance as required by Chapter 5 of King III.

1) Noncompliance to relevant Regulations, Acts and Codes of

316

No Impact Likelihood Inherent Risk

Existing Control Control Type

Perceived Control effectiveness

Residual Risk

1 Severe/Catastrophic 5 Almost Certain

5 Critical 25 1. Property development policy. SLA with developers.

2. Service Delivery Agreement with CoT. Detailed designs

3. Conditional accreditation on level 2 has been granted by SHRA.

4. Funding secured for 100 units for 2016/17 Financial year.

5. Supply Chain Policy 6. SDA with CoT.

Preventative Good 0.30 Low 8

2 Severe/Catastrophic 5 Likely 4 Critical 20 1. Finance Policies and Processes 2. Supply Chain Policy 3. Tenant Management Policy, Processes and

Procedures 4. Organizational Performance Management

System 5. Quarterly Compliance Checklist

Detective Satisfactory 0.50 Medium 10


5 Critical 25 1. Service Level Agreements with Project Teams.

2. Council Resolution for transfer of Silverkroons (units), Ou/Nuwe Stalshoogte (units) and Bosmanshuis (units).

3. Rent Collection Policy. 4. Arrears Management Policy. 5. Rental Housing Tribunal.

Corrective Weak 0.70 High 18


5 Critical 25 1. Quarterly ICT Governance report. 2. Quarterly Compliance Checklist.

Preventative Satisfactory 0.50 High 13

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2.2.1.3 Entity’s Supply Chain Processes and Procedures During the current financial 2016/2017, the entity developed the new Supply Chain Policy that is aligned

with the provisions of the MFMA and the National Treasury: Municipal Supply Chain Management

Regulations, 2005 and the policy was approved by the Board. The entity’s SCM policy provides for the

exclusion of awards to persons in the service of the state subject to the exemptions and regulations

issued by National Treasury from time to time. The entity has started implementing bidding processes

with separate Bid Specification, Bid Evaluation and Bid Adjudication Committees having been set up.

To capacitate Supply Chain Management, the HCT employed a Senior Supply Chain Officer in quarter 1

who unfortunately resigned in March 2017. There is a need for a Supply Chain Manager to manage and

oversee that the Bid Committees are well functions and efficient.

The Board has ensured that the Procurement Policy embraced the objectives of Broad-Based Black

Economic Empowerment (B-BBEE) and the CEO, as the Accounting Officer of the Company, was tasked

as the custodian for effective implementation. The Capital projects implemented during this period

served as valuable foundations for ensuring community participation in the HCT’s BEE programmes.

This process will be enhanced and the Company will continue to be sensitive to the financial constraints

facing emerging black owned businesses.

The entity has made a number of quotations-based awards for property maintenance and management

projects that the entity undertakes from time to time. The HCT is committed to the development of BEE

and SMME’s. No unsolicited bids were made by the Company in the period under review.

In instances where there are deviations from the Supply Chain processes, irregular, wasteful and

fruitless expenditure, management report these to the board and consequence management is

undertaken where money will be recovered from responsible employees.

318

Table 2: HTC’s supply chain committees and functions

Supply Chain Management Committees:

Guidelines Functions and purpose of the

Committee

No of Meetings targeted

Actual Reasons Intervention

/ Action Taken

Bid Specification Committee (BSC).

Municipal Finance Management Act, Board Terms of Reference

Consideration and approval of the project’s scope of works for upcoming tender/bid.

5 Consideration of bid specification for: 1. Tender for Development of a Social Housing

Scheme on ERF 708 & 709 in Sunnyside. 2. Tender for Development of a Social Housing

Scheme at Townlands in Marabastad. 3. Tender for Installation of the internal Civil

Services: Water, Sewer and Storm water in Chantelle.

4. Hiring of the Copier Machines. 5. Provision for Geotechnical Investigation for

the Development of a Social Housing Scheme at Townlands in Marabastad.

All 5 Bids specifications were considered and approved.

None.

Bid Evaluation Committee (BEC).


Receive tenders from bid specification Committee and Evaluate tenders according to the criteria determined by the BSC

5 Evaluation of Bids: 1. Tender for Development of a Social Housing

Scheme on ERF 708 & 709 in Sunnyside. 2. Tender for Development of a Social Housing





All 5 Bids were evaluated according to the criteria specified in the tender document.

None.

Bid Adjudication Committee (BAC).


Considers the evaluation report from the Bid evaluation committee and make awards.

5 4 Bids were awarded namely: 1. Tender for Development of a Social Housing





1 Bid was not awarded as a result that the bids received were higher than the estimated cost, the BAC then resolved that the bid be referred back to BSC for the review of specification and be re-advertised. Name of the bid: 1. Tender for Development of a Social Housing Scheme on ERF 708 & 709 in Sunnyside.

None.

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Table 3: HTC’S Bid Adjudication Committee Structure and non-compliance with the requirements

Supply Chain Management procurement threshold and delegations (Table 10) Value of Purchase

Procurement method and requirements

Delegated Authority

Oversight role Procurement requirements defaults

Reasons Intervention/ Action Taken

0 to R2,000 Petty cash (One quotation)

Accounting Officer Senior Finance Officer None. None. None.

R2 0001 to R10 000 Three quotations system Accounting Officer Senior Finance Officer R 5,182.58

R 3,118.01

R 9,945.36

R 7,313.00

Non-compliance • Is was emergencies

whereby it was impractical to follow the procurement processes

Approved by the CEO and board

R10,000 to R30 000 Three quotations system Accounting Officer Senior Finance Officer R 11003.23

R 16,500.00

Non-compliance • Is was emergencies whereby it was impractical to follow the procurement processes


R30 001 to R200 000 Three quotations system (80/20 Point system)

Accounting Officer Senior Finance Officer R 51,509.99

R 53,709.96

Non-compliance • The service provider is a sole supplier/ it was impractical to follow the procurement processes


Tenders above R200 000 to R10 million and long term contracts

Competitive Bidding (Advertised for 14 days in the website, notice board and 3 Newspapers). (90/10 Point system)

Accounting Officer Accounting Officer None. None. None.

Tenders above R10 million Competitive Bidding (Advertised for 30 days in the website, notice board and 3 Newspapers).

Accounting Officer Accounting Officer None. None. None.

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CHAPTER 3 SERVICE DELIVERY PERFORMANCE

INTRODUCTION

The HCT’s performance rating has improved compared to the previous period in 2015/2016 in terms of

meeting some pre-determined objectives of the entity. Even though some of the performance objective

could not be achieved by the entity, The HCT for the first time since its inception, have appointed a main

contractor for the construction of one of its Greenfield projects.

3.1 PERFORMANCE AGAINST SCORECARD FOR THE HOUSING COMPANY

TSHWANE FOR 2016/17

The HCT has appointed a contractor for the construction of Townlands Social Housing. The contractor

has managed to deliver 49 completed foundations compared to the target of 100 units. The entity has

also managed to appoint the contractor to provide internal civil services reticulation for the

development of Chantelle Social Housing and the progress was at 35% completion. The detailed design

for Timberland Social Housing is at 90% completion.

The entity faced challenges which contributed to its non-performance. The objections received on the

Timberland Social Housing Development, the delays caused by the person who occupied the land in

Chantelle and the poor performance of the contractor in Townlands.

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3.1.1 PERFORMANCE OVERVIEW

Department Key performance

indicator Project Name Q4 Target Q4 Actual Annual Target Actual

Comments on work done / Reasons for non-performance

Mitigation plan

Property Development (Construction of Social Housing Units)


Townlands 100 Units completed

49 completed foundations in block A1, F2 and 3H (see item 9 of the attached report).


49 completed foundations in block A1, F2 and 3H (see item 9 of the attached report).

Contractor's non-performance Not achieved

Contractor to be put on terms starting July 2017 and applying penalties. Cession will be applied and a nominated sub-contractor will be appointed to assist expediting progress

Detailed Designs completed in Timberland

Timberlands Detailed designs 100% complete


Detailed Designs completed in Timberland


Objections on the development. Not achieved

Awaiting hearing date to resolve the objections


Sunnyside Erf 708 and 709

Bulk Infrastructure provision completed




The BAC recommended that the tender should be re-advertised due to high cost. Not achieved

The professional team is currently looking for alternative building technologies in order to reduce the high cost.


Chantelle X39 Internal reticulation 100% completed

Internal reticulation at 35% completion.


Internal reticulation at 35% completion.

Delayed due to the person occupying the building on site which should be demolished to make ways for the contractor. Not achieved

Legal advice is sought from Attorneys to evict the person. The contractor has been instructed to re-schedule the portion of works to a later stage while the matter is been resolved.

Property Management (Management of Housing Stock)

Number of CoT's transferred to THE HCT for management(brownfields

Ellofsdal( Silwerkroon)

N/A N/A 120 rental units transferred from CoT to THE HCT

120 rental units were transferred from CoT to THE HCT effective on the 1st of July 2016

Performance will be sustained Achieved

N/A

Occupancy level in units under management

Eloff 95% 97% 95% 98%


N/A

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Mitigation plan

Clarina 90% 97% 90% 96%


N/A

Silwerkroon 95% 98% 95% 97%


N/A

Turnaround in resolving tenant complaints

Eloff , Clarina and Silwerkroon

90% 100% 90% of the complaints resolved within the approved timeframes

100% Performance will be sustained Achieved

N/A

Finance (Financial Management)

Development of BEE SMME’s

31% 114% 31% of total expenditure spent on procurement from BEE & SMME’s

45% Performance will be sustained Achieved

Manage budget processes of the entity in accordance with regulatory frameworks

25% 155% Budget management and implementation: 90% of Budget spent

57% The delay in the tender process for both Chantelle X39 and Sunnyside has impacted the budget spending. Not achieved

Procurement plan must be submitted to the Supply Chain Department in the beginning of the new financial year

Rental collection rate of billed units above baseline

Eloff 2.5% 6% 2.5% Rental collection rate of billed units above baseline of 94%

4.7% Performance will be sustained Achieved

N/A

% of Levies collection of billed units above baseline

Clarina 4% -30.50% 4% of Levies collection of billed units above baseline of 46%

-23.9% Tenants allocated at Clarina do not go through the normal HCT processes of affordability assessments. Their allocation is as per the court ruling. A majority of the residents are unemployed and of

In the new financial year 2017/2018, the report will be tabled to Council to rescind the Clarina Court order to enforce rental payments on residents.

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Mitigation plan

those who are employed, some do not earn enough to even pay the Levied amount. Continuous engagements with the Residents sub-Committee, working with them to drive through the massage of complying with their obligation to pay the Levies. Re –education about Levy payments and the consequences of non- payment. A Junior credit controller has been appointed to engage the residents and facilitate payment arrangements. Furthermore, the residents who are employed and are intentionally defaulting on their payments are handed over to the Lawyers for eviction Not achieved

Rental collection rate of billed units above baseline

Silwerkroon 2% 8.28% 2% Rental collection rate of billed units above baseline of 90%

8.71% Performance will be sustained Achieved

N/A

Maintaining entity asset liquidity to an acceptable level

Liquidity ratio of 1.1

Liquidity ratio of 1:1,2

Achieving Liquidity Ratio of 1:1 Liquidity ratio of

1:1,2


N/A

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Mitigation plan

Governance

Review of Internal

Governance

Structures and

Processes.

Entity annual

strategic review

and approval

N/A N/A Review

Reviewed and approved


N/A

Policy review and approval

Review

Policies reviewed

and approved -

Performance

Management

policy, Petty cash

policy, Rent

collection policy

Cell phone and

data Policy, Bad

debts Write -off

Policy, Code of

Conduct, Code of

Ethics Policy,,

Training and

Development

Policy, Arrears and

Debtors Policies

and Procedures,

Anti-Corruption

and Anti -Fraud

Policy

Policy review and

approval i.e.

Supply Chain,

Delegations of

Authority, Human

Resources,

Marketing &

Communication,

Management ,

Financial and

Internal control

Policies reviewed

and approved –

Supply Chain,

Delegation of

Authority,

Performance

Management policy

,Petty cash policy,

Rent collection

policy, Cell phone

and data Policy ,Bad

debts Write -off

Policy, Code of

Conduct, Code of

Ethics Policy,

Training and

Development Policy

,Arrears and debtors

Policies and

Procedures, Anti-

Corruption and Anti -

Fraud Policy,

Marketing and

Communication

Policy, Employee

Rent Discount Policy,

Travel & Subsistence

Policy, Property

Development Policy,

Financial & Internal

Control Policies and

Procedures, Asset

Management Policy,


N/A

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Mitigation plan

Leave Management

Policy, Risk

Management Policy

3.1.2 PERFORMANCE ASSESSMENT (SCORECARDS)

Annual Targets Actual Reasons for non-achievement Corrective measures

100 units completed in Townlands 49 completed foundations

Contractors poor performance Appointment of sub-contractor and sign a cession with the main contractor.

Charge penalties to the main contractor.

Detailed design 100% completed for Timberland

Detailed design 90% completed

Delays cause by the objections on the development Objections referred to tribunal and a waiting for a hearing date.

Internal civil services reticulation for Chantelle

Internal reticulation at 35% completion

Delays due the person occupying the building on site which should be demolished to make ways for the contractor

Legal advice sought from Attorneys and the person has been given a 60 days’ notice to vacate the site.

The contractor has been instructed to re-schedule the portion of the work to a later stage.

Provision of Bulk infrastructure completed for Sunnyside

None The BAC recommended that the tender should be re-advertised due to high cost.

The professional team is looking for alternative technologies in order to reduce the high costs.

Budget management and implementation: 90% of Budget spent

57% The delay in the tender process for both Chantelle X39 and Sunnyside has impacted the budget spending.

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3.1.3 PERFORMANCE IMPROVEMENT MEASURES

Develop a rental strategy

Implementation of current policies and procedures

Introduction of a performance management mechanisms

Appointment of key personnel

Improvement of levy collection at Clarina by appointing a debt collection agent and handing over to legal firms for possible evictions

327

CHAPTER 4 ORGANISATIONAL DEVELOPMENT PERFORMANCE

4.1 THE HCT ORGANOGRAM AND STAFF COMPONENT

Human Settlements

(COT)

HCT Board

Chief Executive Officer

Chief Financial Officer

(2015/16)

Finance Manager

Bookkeeper

Accounts Clerk

Supply Chain Officer

Chief Operating Officer (2015/16)

Compliance Officer

Human Resource

Officer

Office Assistant/Receptio

nist

Marketing Officer

Property Manager

Leasing Officer

Maintenance Officer

Caretaker Caretaker General Worker

Building Manager (2015/1)

Property Development

Manager

Project Co-ordinator (2015/16)

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4.2 MANAGING THE ENTITY’S WORKFORCE

4.2.1 Employee expenditure

FY

2012/2013

FY

2013/2014

FY

2014/2015

FY

2015/2016

FY

2016/2017

Total Salary Cost (inclusive of directors

remuneration) R 4,098,771 R 4,914,447 R 4,689,811 R 8,247,740.29 8,003,656.19

4.2.2 THE HCT’S employee totals, vacancies turnover

Employee total 2016/2017 Vacancies 2016/2017 Turnover 2016/2017

37 4 2

4.2.4 EEA report on (Female positions, people with disabilities

Employment Equity figures

African Coloured Indian White Total

Male 16 1

17

Female 19

1 20

Total 35 1

1 37

Actual % 97.3% 2.5% 0% 2.5% 90%

Target % 86.05% 4.65% 4.65% 4.65% 100%

Gap 2 1 2 1 6

Target Total 37 2 2 2 43

Change Totals

Staff Levels:

Senior Management 4 1 0 0 5

4.2.5 No of approved positions & filled vacancies

No of positions

approved

No of positions as per the amended

structure not approved by the board,

the positions were included in the

adjustment budget

Filled positions Vacancies

22 55 37 18

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4.2.6 Highlights, challenges and interventions.

4.2.6.1Highlights:

The Townlands project and Chantelle x39 projects obtained capital grant funding for the implementation of

the Social Housing Units. The development of 1200 units in Townlands has commenced. The contractor has

been appointed and the projects has received the Restructuring Grant & Institutional Subsidy approval.

Infrastructure Upgrade for the Chantelle x39 has commenced. The contractor has been appointed to install

internal reticulation.

The transfer of 284 self-sufficient was successfully completed and the lease agreements signed.

Due to the Improved reporting to the SHRA, the entity consequently received 2 years’ conditional

accreditation with the SHRA.

4.2.6.2 Challenges:

The high Electricity & Water tariffs at the Eloff Complex, which is due to the building being zoned as

Business Premises. This places an unfair financial strain and burden on the Tenants. The COO has for several

months been engaging the City, to change the Electricity tariffs to mainly residential zoning.

Management Structure that is not capacitated, there are key positions in the Entity that have not been field.

Reliance on CoT Grants- Financial constraints experienced poses a great challenge in the implementation of

new stock.

Poor company marketing & branding- The entity has developed a negative reputation due to previous experience.

Operational Inefficiencies- Poor implementation & management of policies & procedures

4.2.6.3 Interventions:

Filling of key positions

The CEO will further intervene with both City Planning and Finance Department in this regard regarding.

Introduction of performance management mechanisms.

4.3 THE HCT’S TURN AROUND STRATEGY ON RECRUITMENT

The entity took a decision to implement a phased human capacitation approach. Firstly a decision was taken to upgrade contractual posts to permanent posts to create certainty and skills retention. The 2nd phase was to undertake a proper skills gap analysis that led to the revision of the entire organizational structure which the Board approved in May 2017. The Shareholder placed a moratorium on the filling of all vacant posts pending the review of the entities. The review

has been concluded and recommended that HCT continues to function as a going concern and approved by Council

on 29 June 201. Preparations for the recruitment processes will now commence for the following critical and vacant

posts, in line with the organizational structure approved by the Board and Council, as part of the HCT’s 2017/18

Business Plan.

Chief Executive Officer

Chief Financial Officer

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Supply Chain Manager

Marketing and Communications Manager

Accountant

Clerk of Works

Housing Officers

PA to CFO

4.4 DISCLOSURES

4.1.1 Disclosures concerning THE HCT

In order to ensure good governance practices, the entity is required to make financial disclosures. Therefore; this

section should disclose the remuneration packages of the entity’s executives for the 2016/17 financial year. 4.5 REMUNERATION AND HUMAN RESOURCES COMMITTEE

4.6 DIRECTOR’S REMUNERATION

4.6.1 HCT’s Board of Directors

Table 4: Table: THE HCT Board of Directors

Name Designation Q1 Meeting

Fee

Q2 Meeting

Fee Q3 Meeting Fee

Q4 Meeting

Fee Total

Mr T.S Phetla Chairperson 47,833.60 54,774.98 51,531.42 69,239.58 223,379.58

Dr M. Matlou Non-Executive 52,728.56 47,203.24 39,583.30 35,896.66 175,411.76

Dr W Rowland Non- Executive 47,110.94 37,784.92 22,619.20 39,790.46 147,305.52

Dr A.J Singh Non-Executive 43,757.42 41,090.40 34,621.59 52,468.94 171,938.35

Adv. T.S Kholong Non-Executive 39,684.94 54,761.50 54,730.34 62,365.95 211,542.73

a. Providing the Board with the assurance that management and employees are fairly rewarded for their individual contributions to Housing Company Tshwane’s Performance;

b. Assessing the remuneration strategy of The HCT by determining the incentive remuneration structures in both the short and long term in accordance with trends in local and international markets;

c. Monitoring and development, alignment, satisfaction and productivity of the Company’s employees in order to ensure competitive excellence; and

d. Review and make recommendation to the Board regarding the total remuneration of the CEO and other senior managers.

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Adv. E.M

Mphahlele

Non-Executive 59,163.45 31,691.34 37,143.58 66,759.82 194,758.19

Ms D Masilela Non-Executive 42,956.34 58,925.48 65,220.68 34,937.20 202,039.70

Total 333,235.25 326,231.86 305,450.11 361,458.61 1,326,375.83

4.7 HTC BOARD & COMMITTEE MEETINGS 2016/17 FINANCIAL YEAR

4.7.1 Board & Committee Meetings 2016/17 Financial Year Table 5: Table: THE HCT Board Committee Meetings

Name of Board Member

Finance and Risk Committee

Development & Projects Committee

REMCO Board TOTAL Challenges Comments

T. Phetla ( Chairperson)

- - - 8 8

The unpredictable & forever changing reporting times of the City made it difficult to stick to the scheduled meeting calendar

More cooperation between the City ( Shareholder Operations Unit) APC Secretariat and relevant departments in order to report and comply effectively

A. Signh 5 8 13

S. Kholong 7 5 7 19

W. Rowland 6 7 13

D. Masilela 6 8 14

E. Mphahlele 5 5 7 17

M. Matlou 6 5 5 16

Table 6: Human Resources Head count per unit

Units Units Nr posts Nr of filled posts Nr of vacancies Vacancies %

Chief Executive Officer 1 0 1

Office of the Chief Executive Officer 5 4 1

Office of Chief Finance Officer 8 4 4

Office of the Chief Operations Officer 6 3 3

Office of the Property Development Manager 2 1 1

Office of the Property Manager 24 22 3

Office of the Client Service Manager 8 3 5

TOTALS 55 37 18

Table 7: Training and Development

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Company Name Degree or diploma Male Female Total

A C I W A C I W

Classic Seminars CC. Training x 1

Wits School of Governance

Training x 1

Unisa Training- Basic Project Management

X 1

Nosa Training- Samtrac x 2

Classic Seminars CC Training- MS Projects X 2

4.8 MANAGEMENT OF LEAVE Table 8: Leave Records

Types of leave

2016/17

Days Description Total Sick Leave

On special and sick leave (medical certificate provided, death

certificate and study leave info)

Sick 118 43 118

Vacation 740 0 740

Study 26 13 26

Special 0 0 0

Family responsibility 28 16 28

4.9 HUMAN RESOURCES Table 9: Staff movements

Staff movements African Coloured Indian Whites

Male Female Male Female Male Female Male Female

Appointments 1

Resignations 2

Suspension

Sick leave 60 47 8 3

Table 10: Employee totals, vacancies and turnover

Position Status Plan

Chief Executive Officer Vacant – CEO has resigned at the end of February 2017

Acting CEO in place. To be filled in 17/18.

Personal Assistant to CEO Filled N/A

Chief Finance Officer Vacant Strategic position. To be filled in 17/18

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PA to CFO Vacant To be filled in 17/18

Property Development Manager

Filled N/A

Project Support Officer Filled (30 March 2017) N/A

Chief Operations Officer Filled N/A

PA to COO Filled N/A

Supply Chain Officer Vacant Resigned after 6months. Position upgraded to Manager in the new structure. To be filled in 17/18

Finance Manager Filled N/A

Bookkeeper Filled N/A

Accounts Clerk Filled N/A

Human Resource Support Officer

Filled N/A

Property Manager Filled N/A

Client Service and Office Supervisor

Vacant To be filled in 18/19

Maintenance Officer Filled (Internal Staff deployment) N/A

Housing Supervisor 1 Filled (Internal Staff deployment) N/A



Security Guard Supervisor Filled N/A

Security Guards x11 Filled N/A

Security Guards x6 Vacant (new) To be filled in 17/18

General Workers x6 Filled N/A

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5 FINANCIAL PERFORMANCE

5.1 ENTITY’S FINANCIAL PERFORMANCE

5.1.1 Revenue

The entity posted revenue of R 63 million for the financial year 2016/2017, an increase of 118% (2016: R24 million)

as compared to the previous financial year. The increase is attributable mainly to Silwerkroon building that was

transferred to the entity by the City in the current financial year and utilizing more operational grant from the City

for the management of buildings under its control as well construction of Townlands project. The operation grant

from the City remains significantly high and contributes up to 92% of the total revenue, this being an increase of

190% as compared to the previous financial year. The revenue earned from interest income is R136, 262, an

increase of 43% (2016: R 94,644) due to an increase on interest charged on defaulting tenants. The collection rate

has improved at both Eloff (101%) and Silwerkroon (100%) but declined at Clarina building (23.92%).

5.1.2 Results of Operations

Operational costs decreased by 3, 6% as compared to the previous financial year to R24, 7 million (2016: R 25, 6

million). The key operational costs that contributed to the decrease were mainly employee costs, directors’

remuneration, depreciation and other expenditures. Employee costs were lower by 9% as compared to the previous

financial year due to the resignation of the CEO at the end of February 2017 and unfilled positions as a result of

moratorium from City on the filling of vacant positions and the review process of entities. Directors’ remuneration

General Workers x2 Vacant (new) To be filled 17/18

Office Cleaner Filled N/A

Company Secretary Filled N/A

Community Development Officer

Vacant N/A

Marketing and Communication Manager

Vacant Strategic position. To be filled in 17/18

Office Assistant Filled (Internal Staff deployment) N/A

Supply Chain Manager Vacant Critical positions. To be filled 17/18

Information and Communications Technology (ICT) specialist (not in structure)

The HCT is currently utilizing the City’s ICT infrastructure and resources

In future a permanent post must be created to oversee the ICT requirements of the entity.

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was 10% lower as compared to the previous financial due to a reduction in the number of board and committee

meetings. Depreciation decreased by 5% as a result of reviewed useful life of assets.

Finance charges on the National Housing Finance Corporation (NHFC) decreased by 15% due to reduction in the

capital portion of the loan. Contracted services increased by 21% due to scope of work that has been increased for

pre-construction phase of Townlands project from 475 Social Housing units to 1,200 Social Housing units. Other

expenditures decreased by 37% due less maintenance expenditure on properties under management.

Capital expenditure increased by 100% due construction of Townlands project. In terms of the target, the entity was

supposed to have delivered 100 Social Housing units but only 49 foundations were completed due to contractor’s

non-performance. The remedial action has been implemented whereby the contractor will be put on terms starting

July 2017 and applying penalties. Cession will be applied and a nominated sub-contractor will be appointed to assist

expediting progress. The entity has also received Restructuring Capital Grant (RCG) from SHRA for the construction

of 767 units by the end of 2017/2018 but the money is not yet released pending financial closure.

The entity posted a surplus of R 38 million for the period under review, against a deficit of R 2 million in the

previous financial year.

5.1.3 Cash Flow

The entity has received operational and capital grant to the value of R82 million from the City. The collection rate at

Silwerkroon building is very good sitting at 8.71% above the targeted collection rate of 92%.

The entity ended the financial year in a favourable cash position with cash on hand being R 39, 4million (2016: R 14,

1 million). The cash position of the entity has increased due to capital grant contribution from the parent

Municipality. The entity is waiting for 10% of the grant contribution from SHRA for the construction of Townlands

project.

5.1.4 Statement of Financial Position

The financial position reflects that the entity is capable of meeting its financial obligations given that the total assets

exceed total liabilities by R 72 million. This is a reflection that the Company could be not be plunged into insolvency

as long as it receives the necessary support from the shareholder. Current assets exceed current liabilities by R 13

million which indicates that the entity is liquid. The current ratio is currently 1:1, 2 versus standard norm of 1:1.

5.2 SUMMARY OF THE ENTITY’S MTREF RESULTS FOR 2016/17 FY

Budget Summary

The entity must provide summary of capital and operational expenditure for housing related services provided by the entity, as per the following tables:

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Table 11: Budget expenditure

Budget Items 2015/16

Budgeted

2015/16

expenditure

2016/17

Budgeted

Actual expenditure

2016/17

Operating expenditure 595,303.70 1,115,187.00 1,151,250.00 388,741.64

General expenditure 27,805,573.00 16,688,555.00 14,118,381.13 15,460,950.18

Capital expenditure 14,000,000.00 13,753,812.00 74,596,457.00 30,085,628.23

Salaries and Wages 10,103,203.00 8,996,240.00 13,576,148.90 9,328,968.09

Totals 52,504,079.70 40,553,794.00 103,442,237.03 55,264,288.14

NB: Operating expenditure relates to all expenses incurred in the procurement of any capital items other that the service delivery Capex. This includes amongst others, furniture, computer equipment and others.

NB: General expenditure relates to all expenses incurred by the entity to enable functioning.

5.3 INTRODUCTION TO SPENDING AGAINST CAPITAL AND OPERATIONAL BUDGET

5.3.1 Capital budget

The Board and the Council approved the budget of R76 million for the implementation of Townlands, Sunnyside,

Timberlands and Chantelle projects during the financial year 2016/2017. However, most of these projects did not

perform due to various reasons. The Timberlands project was put on hold due to objections from the community

on the development of Timberland Social Housing. These objections caused some delays in the completion of

detailed design.

There has been a delay in the completion of internal reticulation for Chantelle project as a result of the person

occupying the building on site which should be demolished to make ways for the contractor. Legal advice is sought

from Attorneys to evict the person. The contractor has been instructed to re-schedule the portion of works to a

later stage while the matter is been resolved. On Sunnyside project, the BAC recommended that the tender be re-

advertised due to high cost and the professional team is currently looking for alternative building technologies in

order to reduce the high cost.

Table 12: Capital Projects expenditure

Project Name

Project Number Source of Funding Budget 2016/17 Expenditure 2016/17

Townlands SHRA - 12,561,500 GDHS – 11,000,000 COT – 10,258,750 THE HCT – 6,133,814

39,954,064.00

30,085,628.23

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Sunnyside COT 6,000,000.00

Chantelle COT

19,375,000.00

Timberlands

THE HCT

10,760,291.00

TOTAL

76,089,355.00 30,085,628.23

5.3.2 Operating budget

Table 13: Opex budget per group

Description 2016/17

Approved Budget

2016/17

Expenditure

Employee related costs 13,576,148.90 9,328,968.09

Debt impairment 571,233.00 728,665.45

Depreciation 376,024.00 214,697.83

Finance charges 284,029.47 285,026.64

Bulk Purchases

Other materials

Contracted services 3,072,503.27 8,888,321.69

Transfer & grants

Other expenditure 9,814,591.39 5,344,238.57

Loss on disposal of PPE

TOTAL EXPENDITURE 27,694,530.03 24,789,918.27

5.3.3 Staff vs. Contracted Services Expenditure

The table below shows the human resource expenditure in terms of staff and contracted services.

Table 14: Staff vs. Contracted Services Expenditure

DESCRIPTION 2015/16

Expenditure

2016/17

Approved Budget

2016/17

Expenditure

Salaries And Wages 7,404,989.00 12,094,370.97 8,003,656.19

Contracted Services 7,328,752.00 3,072,503.27 8,888,321.69

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TOTALS 14,733,741.00 15,166,874.24 16,891,977.88

5.4 REVENUE Planned target 2016/17 : 36,867,008

Actual 2016/17 : 36,394,015

5.4.1 Rental Income

For the financial period under review, the Company realized revenue of R5, 5 million as compared to the budgeted

amount of R5, 2 million. The variance is as a result of improved vacancy rate on buildings under management, the

budgeted vacancy rate was 5% and the entity has reduced it to 2%. The performance will be maintained.

5.4.2 Operational Grant

The Company recognized an operational grant of R30, 6 million as compared to the budgeted amount of R31, 5

million. The variance was attributed to certain tenders that were cancelled due to not been responsive in terms of

pricing. The grant is recognized once the entity has fulfilled the mandate as per the Service Delivery Agreement

between the City and the entity. The variance amounts to R912, 272. To mitigate cancellation of tenders, proper

costing and bench-marking exercise will be performed once specifications are drafted and completed.

5.4.3 Interest Income

For the period under review, the Company earned interest income of R136 thousands as compared to the budgeted

figure of R76 thousands. The variance of R60 thousands is attributed to interest charged to Clarina tenants on

outstanding levies payment. Clarina building is the complex transferred to Housing Company Tshwane by the City.

The complex is utilized to provide alternative accommodation to ex-Schubart Park residents.

The residents are charged levies of R566 per month for services offered by the entity i.e. security and cleaning. The

collection rate at Clarina building is very poor. As a mitigation strategy towards non-payment of levies, residents

have been handed over to Legal Service Providers for collection. In the new financial year 2017/2018, the report will

be tabled to Council rescind the Clarina Court order to enforce rental payments on residents.

5.4.4 Other Income

The Company realized revenue of R208 thousand as compared to the budget figure of R82 thousand. The variance

of R126 thousand was as a result of a sale of tender documents for the advertised tenders. In order to mitigate this,

the entity will do a proper budgeting taking into account the sale of tender documents.

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5.5 ASSETS

The fixed asset register is kept and maintained to safeguard the fixed assets of Housing Company Tshwane and to ensure the effective use of the existing resources. The asset register contain different categories of assets and they are as follows: a. Investment Property (Eloff building) - R13,500,000 b. Office Equipment - R123,682 c. Furniture and Fitting - R501,943 d. Computer Equipment - R429,174 e. Other Assets - R1,285,500 f. Intangible assets - R16,276 g. Motor vehicle - R177,096 h. Building under construction (Townlands) - R43,839,440

Total value of the assets excluding depreciation is - R59, 873,111. To ensure the reliability of the information on the asset register, management maintains a fixed asset identification system for easy reference to the fixed assets register. The practice of tagging or coding is used to accomplish the following goals: a. Provide accurate method of identifying individual assets; b. control the location of all physical assets; and c. Assist in maintaining fixed asset.

Tags or codes are assigned in chronological order as assets are acquired. To ensure the completeness and correctness of assets on the fixed asset register, all assets are physically verified as the end of the quarter and the resultant report is submitted to management declaring that all assets listed are on hand and are in a useful working condition.

5.6 EVENTS & INTERNATIONAL TRIPS The entity did not have any events and international trips for the 2016/17 financial year Table 15: Table: Economic Activity (Not applicable the entity)

Economic Activity by Sector R’ 000

Sector 2015/16 2016/17 Challenges Comments

Marketing N/A N/A N/A N/A Wholesale and retail trade

N/A N/A N/A N/A

Travel and subsistence N/A N/A N/A N/A Total N/A N/A N/A N/A

T3.11.2

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CHAPTER 6 AUDIT MATTERS

6.1 INTERNAL AUDIT

6.1.1 Findings for FY 2015/16

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6.1.2 Finding for FY 2016/17

346

6.2 AUDITOR GENERAL

6.2.1 Response to AG findings for FY 2015/16

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APPENDICES

National Treasury Circular 63: Appendices

The entity is required to complete the circular 63 Appendices below:

Appendix I Municipal Entity/Service Provider Performance Schedule

Please provide Top 4 priority indicators as articulated in the IDP

Name of Entity & Purpose

(i)

(a)Service Indicators

(b) Service Targets

(ii)

2014/15 2015/16 2016/17

Target Actual Target

*Previous Year

(v)

*Current Year

(vi)

(vii)

*Current Year

(viii)

Current Year

(ix)

Following Year

(x)

CONCLUSION

The HCT is well on its way to being a social housing institution of choice in Tshwane. There’s improvement towards closing down number of finding….

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