Questions and Replies

Reply:

The following response was provided by the Gauteng Department of Cooperative Governance Human Settlements and Traditional Affairs:

(a) The last inspection was conducted in the previous financial year.

(b) The inspection was conducted by Rod Rankine.

(c) The above mentioned tower is in Sunnyridge and gives supply to all higher laying area in the vicinity. During the assessment of structural defects of Primrose reservoir to allow for repairs, the structural Engineer also gave comments after inspections. The structural engineer confirmed that the tower still has remaining useful life and that there must be structural repairs to improve conditions.

(d) Ekurhuleni Metro Municipality through the quantum leap project intended to increase the storage capacity of most of water reservoirs. It planned that another water tower be built adjacent to the existing tower with greater volumes and retention periods. Consultants have been appointed for the design of critical reservoirs including Sunnyridge and upon completion the Metro will go on tender for the appointment of contractor.

(e) It is projected that the cost for repairs could be 45% of building new water tower, but the Municipality will still have challenges of capacity.

 

Reply:

The following response was provided by the Gauteng Department of Cooperative Governance Human Settlements and Traditional Affairs:

1. (a) The Ekurhuleni Metro Municipality installed the new generator at the Windsor Pump Station on 21 July 2017 and it was commission on 22 July 2017.

     (b) The cost of the new generator is R1 313 304 excluding VAT.

2. The budget for the new generator was R1 500 000.

Reply:

The Gauteng Department of Cooperative Governance Human Settlements and Traditional Affairs provided the response in this regard:

1. The Ekurhuleni Metro Municipality is currently in the process of appointing a service provider who will conduct the assessment.

2. Best practice dictates that a pavement management system be updated at least every 3 years.

Reply:

The Gauteng Department of Cooperative Governance Human Settlements and Traditional Affairs provided the response in this regard:

#	AREAS AFFECTED	NUMBER OF POWER OUTAGES PER FINANCIAL YEAR
		(aa) 2015-2016	(bb) 2016-2017
a	Marlands	4	21
2	Sunnyridge	19	20
3	Both Areas Affected at the same time (upstream substation trip)	18	9

Summary for 2015/2016

Marlands areas affected by power outages 22 times (4+18=22)

Sunnyridge areas affected by power outages 37 times (19+18=37)

Summary for 2016/2017

Marlands areas affected by power outages 30 times (21+9=30)

Sunnyridge areas affected by power outages 29 times (20+9=29)

Therefore, Marlands areas were affected 52 times in 24 months while Sunnyridge areas were affected 66 times in the same period. It must however be noted that not all customers were always affected at the same time. The customers were only affected as-and-when the circuit feeding them faulted which differed in frequency.

2. (a)

#	Financial Year	CAUSE OF POWER OUTAGES
		Equipment Failure	Operational Causes	3rd Party Cause	Eskom	TOTAL
1	2015/2016	22	12	6	1	41
2	2016/2017	33	8	8	1	50
3	TOTAL	55	20	14	2	91

• Equipment Failure refer to mainly medium voltage cable faults and switchgear failure
• Operational Causes refer to overload caused by limited number of available cables during repairs and failure of protection equipment.
• 3rd Party Causes refer to cable theft and damages by contractors
• Eskom refer to power outages imposed by Eskom network.

(b) Average hours for power restorations = 6 hours. The shortest power outage took around 0.25 hours and the longest around 41.5 hours.

(c) The power outages randomly happens across all days and hours.

(3) (a)

(i) The main substation (Germiston North Intake Substation) supplying the areas is being upgraded at the moment. The project started in January 2017 and is expected to run until the end of 2018. The substation is being completely upgraded with new transformers and switchgear. In addition to the upgrading of the main substation, the Municipality has identified ageing and frequently failing equipment (mainly medium voltage underground cables) to be refurbished this financial year. Tenders for underground cables (supply and install) are in place. Material already ordered in July 2017 and projects expected to run from October 2017 to June 2018.

(ii) Upgrading of main substation started in January 2017 and is expected to run until the end of 2018. Refurbishment of ageing and frequently failing medium voltage underground cables expected to run from October 2017 to June 2018.

(b) The upgrading of the main substation (Germiston North Intake Substation) is projected at R120 million. The refurbishment of ageing and frequently failing equipment (medium voltage underground cables) for the area is projected at R25 million for the 2017/2018 financial year.

(c) The upgrading of the main substation (Germiston North Intake Substation) is budgeted at R120 million. The refurbishment of ageing and frequently failing equipment (medium voltage underground cables) for the area is budgeted at R25 million for the 2017/2018 financial year.

 

Reply:

1(a)(b)(c)(d)2

There are 12 councillors which are still not paid by the Department, the reasons varies to tax related challenges, inactive tax numbers, incorrect tax numbers and deceased former councillors. Therefore, the councillors and the families of the deceased councillors need to visit SARS offices to solve these tax problems. The Municipalities which are affected are, Moretele, Cederberg, Mahikeng, Theewaterskloof, Ekurhuleni, Westrand, Mamusa, Randfontein, Amahlathi, Ngwathe, Modimolle, City of Cape Town and Greater Tubatse.

The councillors will be paid immediately upon resolving their tax challenges with SARS and submit a proof thereof.

Majority of the councillors received the gratuity outcome letters indicating how the gratuity amount was calculated, the gross amount due, the tax amount deducted and the net amount paid to the councillor.

 

Reply:

Department of Cooperative Governance:

1. (a)The Department of Cooperative Governance paid out employees a total amount of R 3 321 403 in bonuses and (b) the detailed breakdown of the bonuses paid out to each employee on each salary level in the 2016/17 financial year is as follows:

Salary Level	Total number of employees who received bonuses	Total Amount
3	14	R 72 116
4	3	R 31 187
5	9	R 54 590
6	43	R 394 645
7	15	R 200 947
8	18	R 258 563
9	21	R 302 037
10	1	R 33 081
11	43	R 1 128 968
12	10	R 388 101
13	7	R 274 055
14	9	R 409 946
15	1	R 58 556
16	0	R 0
Total	193	R 3 321 403

2. The total estimated amount that will be paid out in bonuses to employees in the Department is R 4 133 229 and (b) the detailed breakdown of the bonuses that will be paid out to each employee in each salary level in 2017-18 financial year is as follows:

Salary Level	Total number of employees who received bonuses	Total Amount
3	20	R 105 848
4	2	R 17 873
5	11	R 120 862
6	37	R 397 318
7	14	R 199 052
8	17	R 248 754
9	31	R 530 571
10	1	R 22 581
11	46	R 1 619 911
12	10	R 464 251
13	6	R 294 457
14	2	R 111 751
15	0	R 0
16	0	R 0
Total	197	R 4 133 229

 

Department of Traditional Affairs:

1. The Department of Traditional Affairs is in the process of finalising performance assessments for 2016/17 performance cycle and there were no performance bonus payments paid to the officials for the above mentioned performance cycle
2. The department’s approach on performance is based on prior expenditure. However, in this case, there are no transactions recorded yet.

Reply:

(1) (a) (i) The local state of disasters declared by municipalities due to water shortages caused by drought during the past three municipal financial years, that have been reported to my department, are listed in a table below. All the other states of disasters during the indicated period were provincial states of disasters, declared by respective provinces.

For the past three municipal financial years:

Provinces and Municipalities	Financial Year
Eastern Cape Province Joe Gqabi District Municipality	2014/15 (January 2014)
Western Cape Province Central Karoo (Prince Albert) Eden District (Knysna, Bitou, Oudtshoorn) Cape Winelands (Witzenburg)	2015/2016 (November 2015)

(ii) Since 01 July 2017, the following municipalities were declared a local state of disaster:

Provinces and Municipalities	Period
Eastern Cape Province Sarah Baartman District Municipality Nelson Mandela District Municipality Amathole District Municipality	August 2017 August 2017 September 2017

(b) The dates for the (i) declarations and (ii) gazettes are as follows:

Provinces and Municipalities	(b) dates for the (i) declarations and (ii) gazettes
Eastern Cape Province Joe Gqabi District Municipality	30 January 2014, GN3115 - 6 EC 2014
Western Cape Province Central Karoo (Prince Albert) Eden District (Knysna, Bitou, Oudtshorn) Cape Winelands (Witzenburg)	25 November 2015, GN632-365 WC 2015
Provinces and Municipalities	(b) dates for the (i) declarations and (ii) gazettes
Eastern Cape Province Sarah Baartman District Municipality Nelson Mandela Metro Municipality Amathole District Municipality	11 August 2017, LAN3893-118 EC2017 14 August 2017, GN13895-19 EC2017 04 September 2017, GN3908-180 EC2017

(c) Where applicable, the department performs the following roles:

• Conducts assessments and classification of disasters as per section 23 of the Disaster Management Act (Act No. 57 of 2002);
• Facilitates the provision of technical support and guidance through the Municipal Infrastructure Support Agent (MISA);
• Coordinates the funding allocation to address the situation; and
• Monitors the implementation of intervention measures as per the Division of Revenue Act and applicable grant conditions.

(d) The amounts spent on addressing drought and water shortages in all the municipalities that were declared a state of disaster were provided through reprioritisation process by affected municipalities, Provincial Treasuries as well as relevant provincial and national government departments. The bulk of the funds that were made available by the provincial and national spheres of government were for implementation of drought intervention measures with regard to declared provincial state of disasters. With regard to the recent state of disasters declared by Amathole, Sarah Baartman District Municipalities and Nelson Mandela Metro Municipality respectively, there are no amounts allocated by the department and spent so far, as the process for the drought assessments and disaster classification are underway.

The bulk of the funds that were made available by the provincial and national spheres of government were for implementation of drought intervention measures with regard to declared provincial state of disasters. However, it should be noted that the indicated municipalities also benefitted from the funding that was allocated due to the declaration of a provincial state of disaster as a result of drought, since they were incorporated within the provincial declarations.

2. (a) The relevant national departments contributed funding to assist the affected provinces whereby the municipalities that declared a local state of disaster also benefitted. The details below are as per the reports from sector departments as well as where my department facilitated funding:

Table 1: Funding facilitated by different national sector departments to address the drought situation

Province that benefitted	National department that facilitated and contributed funding	Amount and source of funding	Financial year	Type of Assistance
Eastern Cape	COGTA through National Treasury	R29 million Contingency Reserve	2016/17	Provision and transportation of livestock feed for agriculture sector
	Department of Agriculture, Forestry and Fisheries (DAFF)	R37.4 million Reprioritization from the Comprehensive Agricultural Support Programme (CASP)	2015/16	Provision and transportation of livestock feed
	COGTA through National Treasury	R8.6 million Contingency Reserve	2016/17	Water tankering and storage for human consumption
	Department of Water and Sanitation (DWS)	R4.9 million Reprioritisation from existing programmes	2015/16	Water tankering and storage for human consumption
Total Amount - EC : R79.9 million
Western Cape	COGTA through National Treasury	R12 million Contingency Reserve	2016/17	Provision and transportation of livestock feed for agriculture sector
	Department of Agriculture, Forestry and Fisheries	R6 million Reprioritization from the Comprehensive Agricultural Support Programme (CASP)	2015/16	Provision and transportation of livestock feed Inputs costs to small grain
	COGTA through National Treasury	R8.6 million Contingency Reserve	2016/17	Water tankering and storage for human consumption for the water sector
	Department of Water and Sanitation	R8 million Reprioritisation from existing programmes	2015/16	Drilling of boreholes for human consumption
Total Amount – WC : R34.6 million

(b) The following provinces reprioritised within their internal resources to address the impacts of drought. The details below on Table 2 are as per the reports received from the sector departments in the provinces:

Table 2: Funding facilitated by different provincial sector departments to address the drought situation.

Province that made contribution	Amount contributed and source of funding	Financial year	Type of Assistance
EASTERN CAPE PROVINCE
Eastern Cape	R95 million Equitable share	2016/17	Livestock feeds, refurbishment and drilling of boreholes (Agriculture Sector)
	R5.9 million Equitable share	2015/16	Provision and transportation of livestock feed Inputs costs to small grain (Agriculture Sector)
	About R200 million Equitable share	2015/16	Water infrastructure for human consumption (Water Sector)
Total Amount – EC : R 300.9 million
WESTERN CAPE PROVINCE
Western Cape	R40.9 million   CASP, Equitable share & AgriSA donations	2016/17	Provision and transportation of livestock feed Inputs costs to small grain
	R5.1 million Equitable share	2015/16	Provision and transportation of livestock feed Inputs costs to small grain
Total Amount – WC : R46 million

Reply:

.The itemised details and expenditure are as follows
(a) Chairperson of National House of Traditional Leaders (NHTL) Kgosi PP Maubane (b) Family member(s) Chairperson of NHTL (c) Deputy Chairperson of NHTL Inkosi SE Mahlangu (d) family member(s) Deputy Chairperson of NHTL	(i) Itemised expenditure for security services in each of the past five financial years 2012/13 R 995,006.00   2013/2014 R 564,672.00 2014/2015 R 564,672.00 2015/2016 R 1 120,392.00 2016/17 R 1 120,392.00	(ii) Itemised expenditure since 1 April 2017   R 599,409.72

Reply:

The following response was provided by the Gauteng Department of Cooperative Governance Human Settlements and Traditional Affairs:

1. Lease agreement is in place, there has been billing since January 2017.
2. Current Rental: R11 700.00 pm (10% escalation).
3. Lease period: 9 years and 11 months.
4. SASSA took occupation of the building from the 9th May 2017.
5. SASSA is currently painting the building internally, and they are in the process of branding the building outside.

 

Reply:

(a)(b)(i)(ii)(aa)(aaa)(bbb)(bb)(cc)

Neither the Department nor the entities reporting to him funds any institution of research and development domestically and internationally. The Department procures goods and services through Supply Chain Management processes.

Reply:

(a) No, the department has not applied for disaster funding to repair the Eastleigh solute channel since no funding request was submitted by the Gauteng Province on behalf of the affected municipality.

(b) and (c) Not applicable

Reply:

According to the information received Ekurhuleni Metropolitan Municipality:

1. Yes, the Ekurhuleni Metropolitan Municipality submitted the information referred to in the Honourable MP’s question. The amounts spent on payment of overtime for officials are as follows:

(a) 2013/14 financial year: R 480 253 281.

(b) 2014/15 financial year: R 525 510 443.

(c) 2015/16 financial year: R 679 379 677.

(d) 2016/17 financial year: R 778 017 645.

2. There was no instruction given by the Auditor-General.

Reply:

(a)(aa)(aaa)(bbb)(ccc)

The Department has not conducted any business with the specified companies (Annexure A) for the past five financial years and since April 2017.

(b)(c)(i)(ii)

The Supply Chain Management processes relating to Provincial Departments of Cooperative Governance and Traditional Affairs, local and/or district municipalities falls under National Treasury.

Reply:

(a) Section 56 (2) (b) of the Disaster Management Act (Act 57 of 2002) places the onus for the rehabilitation and reconstruction of infrastructure on the organ of state responsible for maintaining such infrastructure. The Eastleigh solute channel belongs to Ekurhuleni Metropolitan Municipality and therefore the responsibility for the repairs lies with the municipality. The Department of Cooperative Governance referred the matter to the municipality through the Gauteng Department of Cooperative Governance Province and a response is as follows:

The actual date for the repair of the channel is not available. The municipality indicates that specialist consultants were appointed to undertake investigations on the stability of the structures, the actual repair work that require to be undertaken and the designs for remedial measures including the costing for the repair work. It is indicated that the appointed specialist consultants were issued with instructions to proceed with work on 04 July 2017 and completed the assigned work on 31 August 2017.

(b) According to the municipality, the estimated cost received from the consultants after investigations and preliminary designs for the repair works amounts to R111.5 million.

(c) According to the municipality, the date for the completion of the repair work is not available since the repair work has not started as the municipality is currently studying the report and recommendations from specialist consultants.

Reply:

The Eastleigh solute channel infrastructure referred to belongs to the Ekurhuleni Metropolitan Municipality and therefore the question was referred to the municipality through the Gauteng Provincial Department of Cooperative Governance and Traditional Affairs. A response received from the municipality is as follows: the routine maintenance on the channel and other similar infrastructure was conducted prior to the floods of 9 November 2016; however, a specific date is not available. (b) The actual amount utilised solely for the maintenance of the Eastleigh channel has not been indicated. The municipality indicated that an amount of R3.4 million was utilised for the maintenance of the Eastleigh channel and other similar infrastructure in the Edenvale area.

 

Reply:

1. (a)(b)(i)(ii)(iii)(iv)

The Department issued an open tender and/or requested quotations in terms of the Government Procurement processes and delegated authority for the appointment of the following companies to prepare plans, documents, reports and strategies since December 2015.

No	FQ / Tender Number	Description	Awarded Company	Amount Awarded
1.	CoGTA (T) 03/2015	APPOINTMENT OF A SERVICE PROVIDER TO DEVELOP AND IMPLEMENT WEB BASED ENTERPRISE ARCHITECTURE TOOLSET FOR THE DEPARTMNET OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS.	KPMG	R 6 719 912.00
No	FQ / Tender Number	Description	Awarded Company	Amount Awarded
2.	CoGTA (T) 01/2016	APPOINTMENT OF A SERVICE PROVIDER FOR THE REVIEW AND ENHANCEMENT OF A SIMPLIFIED REVENUE PLAN MODEL FOR CUSTOMISATION AND IMPLEMENTATION IN SELECTED MUNICIPALITIES.	UBUNTU BUSINESS ADVISORY AND CONSULTING (PTY) LTD, NKONKE TRADING 1004 CC, BIGEN AFRICA SERVICES (PTY) LTD, DATA WORLD (PTY) LTD, DUCHARME CONSULTING – COASTAL (PTY) LTD, KAGISO TRUST CONSULTANCY PTY LTD, BONAKUDE CONSULTING (PTY) LTD	Rate per Hour Project Manager – R 1600.00 Team Leader – R 1 200.00 Project Manager – R 1000.00
3.	CoGTA (T) 02/2016	APPOINTMENT OF A SERVICE PROVIDER FOR THE DEVELOPMENT OF AN INTEGRATED PROPERTY AND CONSUMER DATABASE TO BE USED BY MUNICIPALITIES IN CREDIT CONTROL, DEBT COLLECTION AND INDIGENT MANAGEMENT.	GISCOE PTY LTD	R 8 899 880.00
4.	CoGTA (T) 03/2016	APPOINTMENT OF A SERVICE PROVIDER TO DEVELOP PROTOTYPE (MINIMUM STAFFING REQUIREMENTS) STAFF ESTABLISHMENTS ACCORDING TO DIFFERENT FUNCTIONS AND POWERS OF DIFFERENT CATEGORIES OF MUNICIPALITIES	DELOITTE CONSULTING (PTY) LTD	R 9 525 319.20
5.	CoGTA (T) 04/2016	THE APPOINTMENT OF A SERVICE PROVIDER TO STRENGTHEN THE INTERNAL CONTROLS ENVIRONMENT BASED ON A BUSINESS PROCESS MAPPING AND RE-ENGINEERING EXCERCISE WHERE NECESSARY FOR THE DEPARTMENT OF COOPERATIVE GOVERNANCE OVER A PERIOD OF 24 MONTHS	SIZWENSALUBAGOBODO	R 2 844 072.00
6.	CoGTA (T) 13/2016	APPOINTMENT OF A SERVICE PROVIDER TO DEVELOP AND ROLL OUT TRAINING PROGRAMME ON THE LOCAL GOVERNMENT ANTI-CORRUPTION STRATEGY AND THE MUNICIPAL INTEGRITY MANAGEMENT FRAMEWORK.	THE ETHICS INSTITUTE NPC	R 1 235 720.10
7.	FQ 09/2016	APPOINTMENT OF A SERVICE PROVIDER FOR THE DESIGN, LAYOUT AND PRINTING OF COGTA ANNUAL REPORT 2015/16 FINANCIAL YEAR	OUTPUT COMMUNICATIONS	R 300 518.82
8.	FQ 119/2016	APPOINTMENT OF A SERVICE PROVIDER FOR THE DESIGN, LAYOUT, EDITING AND PRINTING OF COGTA ANNUAL PERFORMANCE PLAN 2017/18 FINANCIAL YEAR	BLACK MOON	R 126 843.53

2. These plans, documents, reports and /or strategies have been implemented by the Department in line with the terms and conditions as well as timeframes for each contract.

Reply:

We have since requested this information from the Premier’s office and are making continuous follow-ups. The information will be submitted to the Hon Member as soon as it becomes available.

Reply:

We have since requested this information from the Ekurhuleni Metropolitan Municipality and are making continuous follow-ups. The information will be submitted to the Hon Member as soon as it becomes available.

Reply:

This question should be redirected to the Ministry of Transport, as the competent authority.

Reply:

According to the information received from Ekurhuleni Metropolitan Municipality:

(a). At the moment, there is no one building a generator for the Windsor pump station, however, a feasibility study for extension of the pump station has been completed, installation of one pump and a generator.

(b). Total cost is estimated at R 4, 500, 000

(c). April 2018/2019 metro financial year due to budget allocation, should savings be available in 2017/ 2018 financial year then the project will be brought forward.

(d). End of April 2019

Reply:

(a)(b)(i)(ii)(iii)(iv)

Neither the Department nor the entities reporting to the Ministry of Cooperative Governance and Traditional Affairs appointed transaction advisors for tenders in the period 01 January 2012 to 31 December 2016.

Reply:

This matter is sub judice.

Reply:

(a)(b)(i)(ii)(aa)(bb)(cc)(dd)(ee)(ff)

The Department and its Entities did not procure any services from and/or made any payments to Bell Pottinger or any other public relations firms, as the services were not required by the Department.

Reply:

(a) LOFTUS VERSVELD STADIUM

The Loftus Versveld Stadium is privately owned and managed by the Blue Bulls Rugby Union.

(b) FREE STATE STADIUM

(i) (aa) and (bb) Number of events held in 2014, 2015, 2016

2014	2015	2016
EVENT	NUMBER	EVENT	NUMBER	EVENT	NUMBER
PSL Soccer Matches	9	PSL Soccer Matches	12	PSL Soccer Matches	1
CHAN Soccer Tournament	1	Rugby Matches	13	Rugby Matches	21
Rugby Matches	8	Macufe Cup	1	Other	2
Macufe Cup	1	Other	5
Other	1
Events Total	20	Events Total	31	Events Total	24

(ii) Average Operational costs of Stadium per match 

2014	R174 959.97
2015	R188 956.76
2016	R204 073.30

(iii) REVENUE GENARATION

As per the agreement with Mangaung Metropolitan Municipality no fees have been charged for rental of soccer or government events. This means that only operational costs has been paid and we have no record of income generated or the hosting of events. 

Looking at the situation as explained above an event does not make any money and merely costs money.

(iv) MAINTENANCE COSTS

The yearly maintenance budget for the Stadium is currently R6 million. Currently the Free State Rugby Union is responsible for the maintenance, insurance and upkeep of the Stadium.

(v) OPERATIONAL STATUS OF THE STADIUM

The stadium is used for various events, but since the maintenance and insurance of the stadium is taken care by the Free State Rugby Union, the stadium is mainly used for rugby matches as indicated by the number of rugby games played from 2014-12016.

(c) PETER MOKABA STADIUM

The information was provided by the City of Polokwane.

(i) Number of events held in 2015, 2016, 2017

2015	2016	2017
BOWL	NON BOWL	BOWL	NON BOWL	BOWL	NON BOWL
23 PSL matches	129 Events hosted	20 PSL matches	88 Events hosted	25 PSL matches	144 Events hosted
3 CUP matches		7 CUP matches		5 CUP matches
1 National Team Match		2 political rallies		2 National Team matches
1 Super Rugby Warm Up Match		1 Super Rugby Warm Up Match
2 political events		1 Comrades Qualifier Marathon
1 Gospel concert
Total 31 major events		Total 31 major events		Total 32 major events

(ii) Total operational costs in 2015, 2016, 2017

2015	2016	2017
OPERATIONS	OPERATIONS	OPERATIONS
Standby operations: R352 500.00 Team appearance fees (x2 teams): R8mil TOTAL : R8,35mil	Standby operations: R388 500.00 Team appearance fees (x1 team): R4,5mil TOTAL : R8,88mil	Standby operations: 415 000.00 Team appearance fees (x2 teams):R8mil TOTAL : R8,41 mil

(iii) Revenue in 2015, 2016, 2017

2014/15	2015/16	2016/17
R 5 170 616.20	R6 506 604.82	R5 434 088.35

(iv) Maintenance costs in 2015, 2016, 2017

2014/15	2015/16	2016/17
R10 821 453.58	R14 976 803.00	R11 605 709.96

(v) The stadium is still well maintained using internal staff who are experienced in management and operations of the stadium, making it possible to host a variety of events, large and small. It continues to operate with limited resources but since 2010 has attracted a significant number of major events and activities, has been an anchor to some PSL clubs, Kaizer Chiefs, Supersport United, Free State Stars as well as permanent home ground for Polokwane City, Baroka FC and Black Leopards. The municipality is finalizing a model of commercialization that would assist the stadium to enhance revenue and move towards self-sustainability.

(d) MOSES MABHIDA STADIUM

Information provided by Ethekwini Metropolitan Municipality

(i) (aa) and (bb) Number of events held in 2015, 2016, 2017

2015	2016	2017
BOWL	NONBOWL	BOWL	NONBOWL	BOWL	NONBOWL
24	351	20	316	20	262
PSL football matches, cup finals, international football matches, concerts, political events, church services.	Meetings, conferences, cocktail parties, dinners, fashion shows, music festivals, cycle races, triathlons, walks/ runs, TV shows, corporate family days, teambuilding etc.	PSL football matches, cup finals, international football matches, concerts, political events, church services.	Meetings, conferences, cocktail parties, dinners, fashion shows, music festivals, cycle races, triathlons, walks/ runs, TV shows, corporate family days, teambuilding etc.	PSL football matches, cup finals, international football matches, concerts, political events, church services.	Meetings, conferences, cocktail parties, dinners, fashion shows, music festivals, cycle races, triathlons, walks/ runs, TV shows, corporate family days, teambuilding etc.

(ii) Total operational costs in 2015, 2016, 2017

2014/2015	2015/2016	2016/2017
R92 198 807	R95 460 957	R52 817 974 (to May 17)

(iii) Revenue in 2015, 2016, 2017

2014/15	2015/16	2016/17
R70 797 989	R76 366 895	R103 639 346 (to May 17)

(iv) Maintenance costs in 2015, 2016, 2017

2014/15	2015/16	2016/17
R3 785 165	R 5 927 168	R4 081 279 (to May 17)

(v) Over time Moses Mabhida Stadium has built up an excellent reputation with a range of promoters and event organisers who love working with the stadium and city team. The city of Durban, KZN provincial government (along with KZN Tourism and Durban Tourism) and the stadium have secured a vibrant mix of major events over time eg Top Gear Festival, SA v India cricket match, PSL football fixtures, AFCON, international football fixtures eg Manchester United, Manchester City, Liverpool Legends, SA A v French Barbarians rugby match and a variety of concerts and music festivals for the stadium and People’s Park.

Other events hosted by this multi-purpose stadium include International U19 football tournament, Amashova and Tour Durban cycle races, triathlon, marathons, Jump City, Nitro Circus Live, Red Bull Unlocked skateboarding, craft beer festival, Shisanyama festival, Fact Durban Rocks, East Coats Radio Durban Day and Big Walk, I Heart Market, political rallies, church concerts and services, memorial services. Many of these events are hosted at the stadium on an annual basis some for more than 5 years now.

Usage is from three main sources as this stadium which is different in that it has a retail area and tourist attractions plus an adjacent park with kid’s playground and café which operate 7 days a week. This creates revenue streams as follows:
1. Bowl events in the stadium

2. Non-bowl events in other stadium venues and People’s Park

3. Retail tenant rental income and attractions income (SkyCar, Stadium Tours, Adventure Walk).

The stadium has a permanent staff compliment of 141 people in the following departments: Finance, Procurement, HR, Operations (Maintenance, Assets, Landscaping, Safety and Security) and Commercial (Retail, Marketing, Event Services). On event days we draft in temporary staff for cleaning, security and hospitality and create almost 10 000 job opportunities per annum.

Reply:

(a) ELLIS PARK STADIUM

Emirates Airline Park, previously known as Ellis Park Stadium is managed by Ellis Park Stadium (Pty) Ltd.

(i) The total number of events held at Emirates Airline Park in the past three financial years were as follows.

Financial year	2014/15	2015/16	2016/17
Number of events	170	145	111

(ii) The following events were held at Emirates Airline Park in the past three financial years:

Event	2014/15	2015/16	2016/17
Soccer	1	0	0
Music concerts	4	1	0
Political	3	2	3
Religious	38	19	12
Rugby	22	19	17
Campaigns/Conference	36	30	16
Functions	19	20	13
Film shoots	8	8	8
Athletics & recreation	7	1	1
Karate	2	2	2
Netball	0	0	3
Training courses	30	42	36
Basketball NBA	0	1	0

(iii) The total operational cost per financial year was as follows:

Financial year	2014/15	2015/16	2016/17
Total cost	R 47 351 212	R 52 213 358	R 30 515 640

(iv) The total revenue generated was as follows:

Financial year	2014/15	2015/16	2016/17
Total revenue	R 53 266 418	R 58 165 202	R 38 338 870

(v) The total cost for maintenance was as follows:

Financial year	2014/15	2015/16	2016/17
Maintenance cost	R 4 672 380	R 3 970 533	R 5 785 617

(vi) The Stadium is still operational under the management of Ellis Park Stadium (Pty) Ltd on a 99 year lease from the City of Johannesburg.

(b) ROYAL BAFOKENG STADIUM

The Royal Bafokeng Stadium is owned and managed by the Royal Bafokeng Administration.

(c) NELSON MANDELA BAY STADIUM

The information was provided by the Nelson Mandela Bay Metropolitan Municipality.

(i) Number of events held in 2013/14, 2014/15, 2015/16

2013/14	2014/15	2015/16
BOWL	NON BOWL	BOWL	NON BOWL	BOWL	NON BOWL
18	125	31	119	29	65

(ii) Total operational costs in 2013/14, 2014/15, 2015/16

 

2013/14	2014/15	2015/16
R98,941,086 excl. VAT	R106,095,846 excl. VAT	R149,742,834 excl. VAT

(iii) Revenue in 2013/14, 2014/15, 2015/16

2013/14	2014/15	2015/16
R46,901,674 excl. VAT	R42,111,565 excl. VAT	R50,931,696 excl. VAT

(iv) Maintenance costs in 2013/14, 2014/15, 2015/16

2013/14	2014/15	2015/16
R7,002,047 excl. VAT	R7,790,066 excl. VAT	R11,156,683 excl. VAT

(v) The current status is that the Mandela Bay Development Agency as an entity and agent of the Nelson Mandela Bay Municipality took over the management and operations of the Nelson Mandela Bay Stadium effective 1 January 2017 in line with a resolution from the NMBM Council. The majority of the staff employed by Access Facilities (the previous stadium operator) were employed by the MBDA on fixed-term contracts and a new Stadium Manager was appointed in May 2017.

To date a total of 31 bowl and 77 non- bowl events have taken place.

The Southern Kings Super Rugby franchise is based at the Stadium as is Chippa United who play in the PLS soccer league.(c

(d) FNB STADIUM

(i) (aa) The total number of events held at FNB Stadium in the past three financial years are as follows.

Financial year	2014/15	2015/16	2016/17
Number of events	32	34	33

(bb) The following events were held at FNB Stadium in the past three financial years:

Event	2014/15	2015/16	2016/17
Soccer	24	17	24
Music	4	4	3
Political	1	0	0
Religious	0	2	4
Walk	2	1	2
Campaigns/Conference	1	9	0
Wedding	0	1	0

(ii) The total operational cost per financial year was as follows:

Financial year	2014/15	2015/16	2016/17
Total cost	R157 752 356	R132 777 584	R110 164 005

(iii) (The total revenue generated was as follows:

Financial year	2014/15	2015/16	2016/17
Total revenue	R169 613 767	R122 318 701	R137 610 267

(iv) The total cost for maintenance was as follows:

Financial year	2014/15	2015/16	2016/17
Maintenance cost	R3 640 732	R3 654 122	R5 160 638

(v) The FNB Stadium is still operational under the management of Stadium Management South Africa, National Stadium South African and the City of Johannesburg.

Reply:

The following information was provided by the municipalities in question:

1.(a) Bela-Bela local municipality is not renting any property from any private person or company or current or former political office bearers.

(b) Lephalale local municipality does not rent any property from any private person or company or current or former political office bearers.

(c) Thabazimbi local municipality is currently renting offices from private companies. One political office bearer is the estate agent of those companies and he is getting commission directly from those companies.

(d) LIM 368 (Modimolle/Mookgophong local municipalities) is not renting any property from any private person or company or current or former political office bearers.

(2) (a) Bela-Bela local municipality does lease property to private persons, municipal staff and companies. (b) It does not lease any property to current or former political office bearers.

(b) Lephalale local municipality is currently leasing offices in the Thusong Centres they have built, one company is occupying offices in Mokuruanyane Thusong Centre. (b) It does not lease any property to current or former political office bearers.

(a) and (b) No. Thabazimbi local municipality is not leasing any of its properties.

(a) and (b) LIM 368 (Modimolle/Mookgophong local municipalities) is leasing its properties as follows:

PROPERTY NAME	LESSEE	SIZE
Portion 1 Nylstroom Town and Townlands	MTN
Camp E4	Sethako Agriculture Projects	1 ha
Camp System B2 - B4 C1 – C5 K	Modimolle Cooperative Limited	225ha 252ha        783ha 306ha
Erf P6532	Kopanong Creche	1 825m²
Erf V84	Mabaleng Creche
Erf P6853	Lerato Day Care Centre
Erf P7308	Agape Edu Care
Erf P5021	ABC Creche
Erf P4440	Thusanang Creche
Erf P3965	Bophelong Creche
A portion of land bordered by Jeppe Street to the north	Nylstene	1 939
Nelson Mandela Drive to the east, the railway line to the south and the ESCOM power line to the west
A portion of the Farm Nylstroom Town and Townlands 419KR	Alma Endurance Club	8.5809ha
Remaining extent of the farm Nylstroom Town and Townlands	Ant Business Ventures	4248.0746
Camp System B	W L Botes	225ha
Camp 2	M L Malan	40ha
Camp J	C C Laurens	257ha
Camp A	D Beukes	350ha
A portion of Camp System E	Bokamoso Development Project	1ha
Erf P503	Victim Support Centre
Erf 3 Sediba Street	Phagameng HIV/AIDS
A portion of Erf 2	Modimolle Job Creation

Room 12:  Beehive Centre	Childline Limpopo
Camp E4	A Re Hudisaneng Agricultural Primary Cooperative Ltd	2.5ha
A portion of land adjacent to the hostel and sport grounds	Ayitzvumbeni Project	1ha
Office 2 of Erf P503	Modimolle Entrepreneurs
Office 1 of Erf P503	People opposing women and child abuse
Office 3 of Erf P503	Phagameng Youth and Environmental Club

CAMP SYSTEMS (GRAZING)

NAME	SIZE	OWNER	LESSEE
Camp System J	257ha	Modimolle Local Municipality	C C Laurens
Camp 1	12 ha	Modimolle Local Municipality	D M Mokhutswane
Camp 2	40 ha	Modimolle Local Municipality	M L Makau
Camp 4	31 ha	Modimolle Local Municipality	J Pretorius
Camp D5	39 ha	Modimolle Local Municipality	J Pretorius
Camp B2-B4	225 ha	Modimolle Local Municipality	Modimolle Cooperatives
Camp C1 – C5	252 ha	Modimolle Local Municipality
Camp K	306 ha	Modimolle Local Municipality
Camp 3	24 ha	Modimolle Local Municipality	PJJ van der Schyff
Camp B	225 ha	Modimolle Local Municipality	W L Botes
Camp C1, C2, C3, C4, C5	252 ha	Modimolle Local Municipality	G C Moll
Camp A	350 ha	Modimolle Local Municipality	Daleen  Beukes
Camp 5	1 ha	Modimolle Local Municipality	L S Lekala
Camp E4	2 ha	Modimolle Local Municipality	M D Josias
Camp 1 & B1	300 ha	Modimolle Local Municipality	R Honeycomb

Reply:

The following information was provided by the municipalities in question:

(1) (a) No. Bela Bela local municipality has not sold any building or vacant land in the past five financial years.

(b) No. Lephalale local municipality did not sell (i) any building or (ii) vacant land in the past five years

(c) Yes. Thabazimbi local municipality sold a vacant stand to a church. Appropriate procedures were followed.

(d) LIM 368 (Modimolle/Mookgophong local municipalities) has not sold any building or vacant land in the past five financial years.

 

(2) (a) Yes. Bela Bela local municipality has properties to rent (refer to Annexure A).

(b) No. Lephalale local municipality does not have any property to rent or sell.

(c) No. Thabazimbi local municipality does not have any property to rent or sell.

(d) No. LIM 368 (Modimolle/Mookgophong local municipalities) does not have any property to rent or sell.

Annexure “A”

PROPERTY NAME	LESSEE	SIZE
Portion 1 Nylstroom Town and Townlands	MTN
Camp E4	Sethako Agriculture Projects	1 ha
Camp System B2 - B4 C1 – C5 K	Modimolle Cooperative Limited	225ha 252ha        783ha 306ha
Erf P6532	Kopanong Creche	1 825m²
Erf V84	Mabaleng Creche
Erf P6853	Lerato Day Care Centre
Erf P7308	Agape Edu Care
Erf P5021	ABC Creche
Erf P4440	Thusanang Creche
Erf P3965	Bophelong Creche
A portion of land bordered by Jeppe Street to the north	Nylstene	1 939
Nelson Mandela Drive to the east, the railway line to the south and the ESCOM power line to the west
A portion of the Farm Nylstroom Town and Townlands 419KR	Alma Endurance Club	8.5809ha
Remaining extent of the farm Nylstroom Town and Townlands	Ant Business Ventures	4248.0746
Camp System B	W L Botes	225ha
Camp 2	M L Malan	40ha
Camp J	C C Laurens	257ha
Camp A	D Beukes	350ha
A portion of Camp System E	Bokamoso Development Project	1ha
Erf P503	Victim Support Centre
Erf 3 Sediba Street	Phagameng HIV/AIDS
A portion of Erf 2	Modimolle Job Creation

Room 12:  Beehive Centre	Childline Limpopo
Camp E4	A Re Hudisaneng Agricultural Primary Cooperative Ltd	2.5ha
A portion of land adjacent to the hostel and sport grounds	Ayitzvumbeni Project	1ha
Office 2 of Erf P503	Modimolle Entrepreneurs
Office 1 of Erf P503	People opposing women and child abuse
Office 3 of Erf P503	Phagameng Youth and Environmental Club

CAMP SYSTEMS (GRAZING)

NAME	SIZE	OWNER	LESSEE
Camp System J	257ha	Modimolle Local Municipality	C C Laurens
Camp 1	12 ha	Modimolle Local Municipality	D M Mokhutswane
Camp 2	40 ha	Modimolle Local Municipality	M L Makau
Camp 4	31 ha	Modimolle Local Municipality	J Pretorius
Camp D5	39 ha	Modimolle Local Municipality	J Pretorius
Camp B2-B4	225 ha	Modimolle Local Municipality	Modimolle Cooperatives
Camp C1 – C5	252 ha	Modimolle Local Municipality
Camp K	306 ha	Modimolle Local Municipality
Camp 3	24 ha	Modimolle Local Municipality	PJJ van der Schyff
Camp B	225 ha	Modimolle Local Municipality	W L Botes
Camp C1, C2, C3, C4, C5	252 ha	Modimolle Local Municipality	G C Moll
Camp A	350 ha	Modimolle Local Municipality	Daleen  Beukes
Camp 5	1 ha	Modimolle Local Municipality	L S Lekala
Camp E4	2 ha	Modimolle Local Municipality	M D Josias
Camp 1 & B1	300 ha	Modimolle Local Municipality	R Honeycomb

Reply:

The response below is based on an input provided by the Department of Cooperative Governance and Traditional Affairs in the Eastern Cape Province.

1. Councillor Bhelekazi Mabandla last attended council business on 31 August 2016 and on 27 September 2016 she submitted notice of her resignation.

In a letter dated 6 March 2017, from the Speaker of the Municipality to the MEC for local government in the Province, the MEC is informed of the council resolution of 28 February 2017 to remove Councillor Mabandla from municipal council.

On 12 April 2017, the MEC for local government in the province requested Councillor Mabandla for her views on this matter. On 2 May 2017 the councillor, through her attorneys, confirmed that she had resigned from the council on 27 September 2016.

2. No.

On 19 June 2017 the MEC for local government in the province requested the Municipality to declare a vacancy within 14 days of receipt of his letter and to call for by-elections after consulting the Electoral Commission.

3. No remuneration was paid to the councillor after 28 February 2017.

 

Reply:

(a) (i)(ii)(iii)(aa)(aaa)(bbb)(bb)(aaa)(bbb)

The Department of Cooperative Governance has not awarded any contracts or agreement to a government employee in the 2014/15, 2015/16 and 2016/17 financial years. Only one official Ms K Mosimege, a Deputy Director from Information and Database Management Uni, declared and obtained approval to work as an Online and Face-to-Face Tutor at the University of South Africa to the total amount of approximately R5000.00 per month, in 2014/15, 2015/16, and 2016/17 financial years.

(b) (i)(ii)(iii)(aa)(aaa)(bbb)(bb)(aaa)(bbb)None of the staff members from his Entities were awarded contracts or agreements to conduct business with any state entity in the 2014/15, 2015/16, and 2016/17 financial years.

Reply:

1. (a) (b) (i) (ii)

The Minister of CoGTA is not aware of any adjustments undertaken by MECs in their provinces, in respect to the powers and functions of municipalities, since his appointment in December 2015.

In terms of Section 85 of the Local Government: Municipal structures Act No 117 of 1998, the MEC for local government in a province may, subject to the other provisions, adjust the division of functions and powers between a district and a local municipality as set out in section 84 (1) or (2), by allocating, within a prescribed policy framework, any of those functions or powers vested in the local municipality, to the district municipality; or in the district municipality (excluding a function or power referred to in section 84 (1) (a), (b), (c), (d), (i), (o) or (p), to the local municipality.

Here, it must be noted that the MEC has no legal obligation to consult the Minister on the adjustment of powers and functions of a municipality his/her province. Section 85 of the Local Government: Municipal Structures Act No 117 of 1998, empowers the MEC of Local Government to adjust functions and powers of municipalities without any legal requirements for the MEC to consult the Minister.

(2) In terms of Section 85 (5) of the Municipal Structures Act, in the event that the MEC disagrees with the MDB on the capacity of the municipality to receive the function, and refuses to adjust the division, contrary to the assessment of the MDB, the MEC must then furnish reasons to the relevant municipalities and the Minister, before finalising a proposed adjustment.

Therefore, the Minister will only be aware of the MDB assessment that is informing an adjustment, if there is a disagreement between the MEC and MDB on the matter.

Reply:

The information was provided by the Gauteng Provincial Department of Cooperative Governance and Traditional Affairs:

(1)

(a) (i) Shuma company

(ii) Shuma company

(b) On 25 January 2017.

(c) The Municipality appointed the company.

(d) Shuma was paid as follows:

• Basic Environmental Impact Assessment (EIA) is R 84 214.08.
• Traffic Impact Assessment (TIA) is R129 519.03.

2. Yes, report will be furnished to the Honourable Member in due course.

Reply:

The information was provided by the Gauteng Provincial Department of Cooperative Governance and Traditional Affairs:

(a) The site notices indicate 30 days, the opportunity to participate in the EIA was announced in April 2017 in the following ways:

• Newspaper advertisement placed in the Kempton Express on Thursday, 13 April 2017 inviting Interested and affected parties to register with, and submit their comments to the service provider (refer to the attached proof of newspaper advert).
• Site notices informing the surrounding communities and immediately adjacent landowners of the proposed development. The service provider placed site notices within the boundaries of the study area on 19 April 2017. Refer to the attached site notices.

(b) This is an error, as the latest date was supposed to be the 10 May 2017. This will be corrected and communicated in the public meetings.

(c) The Draft Basic Assessment Report (DBAR) would be made available for public review as stipulated in the EIA Regulations 2014 and the report will be out for public review and comment for a 30-day commenting period. The commenting period is envisaged to commence on Monday, 23 May 2017 to Friday, 23 June 2017 (end of business day). Registered interested and affected parties would be sent written notification on the availability of the DBAR through faxes, emails depending on the mode of correspondence they wished to be notified.

(d) This is an error and it will be corrected on the Draft Basic Assessment Report and further adverts.

Reply:

The information was provided by the Gauteng Provincial Department of Cooperative Governance and Traditional Affairs:

1. The Human Settlements Department has identified a need for a mixed development which includes residential and educational facilities (School). The Department is still negotiating with Provincial Government for the land and currently the Human Settlements Department are at a phase where proposals are only being done and circulated for comments. Once positive comments are received from the Provincial Government and Authorities to use the land, the town planning process will be finalised.

2. The ownership still vests with the Provincial Government.

Reply:

SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION (SALGA)

1. (a) The South African Local Government Association (SALGA) has a board in place.

(b) Not applicable

(i) (aa) 1 December 2016

(bb) 30 November 2021

(ii) (aa) 31 members

(bb) 13 female members

2. (a)(b) Not applicable

SOUTH AFRICAN CITIES NETWORK (SACN)

1. (a) The South African Cities Network does have a board in place

 (i) (aa) each board member was appointed at varying times.

Appointment dates

May 2012

August 2004

July 2013

October 2007

April 2011

April 2011

April 2011

December 2011

May 2016

June 2016

May 2012

March 2016

March 2014

January 2012

(bb) the term of all board members will lapse in August 2017 and

(ii) (aa) 14 board members and

(bb) 2 female members.

2. (a)(b)Not applicable

MUNICIPAL DEMARCATION BOARD (MDB)

1.(a) The Municipal Demarcation Board has a board in place

(b) Not applicable

2.(aa) All board members were appointed on 20 February 2014;

(bb) The term of the current board will lapse on 19 February 2019;

1. (aa) 9 board members;

(bb) 5 female members.

(2) (a)(b)Not applicable.

COMMISSION FOR THE PROMOTION AND PROTECTION OF THE RIGHTS OF CULTURAL, RELIGIOUS AND LINGUISTIC COMMUNITIES (CRL COMMISSION)

1. (a) The CRL Commission has a board in place

(b) Not applicable

(i) (aa) All commissioners were appointed from March 2014

(bb) The term of the commission will lapse in March 2019

(ii) (aa) 12 commissioners

(bb) 6 female commissioners

2. (a)(b) Not applicable

Reply:

The information was provided by the Municipal Manager of the Greater Tzaneen Local Municipality (LM):

On 16 November 2016 an incident occurred whereby an official of the Greater Tzaneen LM was electrocuted and died whilst on duty. Three team members of the deceased witnessed the accident and immediately notified the office. An official of the OHS Office was the first to respond to the scene and followed due procedure to secure the scene of the accident. All relevant stakeholders were called on the scene, namely, Paramedics, the Police and Pathology.

    (a) Not applicable.

    (b) The case was reported to the Department of Labour by the first official to respond to the incident scene (Event No. 980065).

    (c) The fatality was investigated internally and an incident investigation meeting was further held with the Director: Electrical Engineering Services, the Superintendent and the three officials who witnessed the incident.

A preliminary investigation meeting was held with an Inspector from the Department of Labour. The Municipality is currently waiting for the Department of Labour to conduct further investigations. Incident investigation is ongoing until the Department of Labour brings the matter to finality.

Reply:

The details are as per table below.

Designation	(a) Minister DES van Rooyen	(b1) Deputy Minister Obed Bapela	(b2) Deputy Minister Andries Nel	(c1) Chairperson of National House of Traditional Leaders (NHTL)	(c2) Deputy Chairperson of NHTL
(i) Himself	No	No	No	Yes	Yes
(ii) Immediate family member	No	No	No	Yes	Yes
(iii) Any of their staff members	No	No	No	No	No
(aa) Reasons	Not Applicable	Not Applicable	Not Applicable	24/7 Security services at official residence owned by DPW.	24/7 Security services at official residence owned by DPW
(bb) From which department‘s budget?	Not Applicable	Not Applicable	Not Applicable	Department of Cooperative Governance. Services are part of DCoG’s Head Office guarding services contract.	Department of Cooperative Governance. Services are part of DCoG’s Head Office guarding services contract.
(cc) Relevant details	None	None	None	24/7 Security services provided at house number 11 Anselia Street Waterkloof occupied by Chairperson of NHTL Kgosi PP Maubane and family	24/7 Security services provided at house number 12 Anselia Street Waterkloof occupied by Deputy Chairperson of NHTL Inkosi SE Mahlangu and family.

Reply:

1 (a) & (b). Yes, Section 4 of the Electricity Regulation Act, 2006 (Act No. 4 of 2006) provides for the National Electricity Regulator of South Africa (NERSA) to issue licences for generation, transmission or distribution facility and the import or export of electricity to be involved in the trading. Rules as determined by the Regulator specify that anyone owning and operating an electricity distribution facility requires a license from the Regulator.

2 Yes, NERSA as the statutory body that oversees the electricity market, has issued a distribution metering code and a transmission code [grid code] which contains the regulations that require compliance with NRS 057. NERSA has declared compliance with NRS 057/SANS 474 to be a licence condition for all licensees and is therefore a mandatory requirement for the municipalities.

3 No, all electricity suppliers such as municipalities and Eskom must make use of certified equipment which is compliant with the relevant standards used in the metering installation and supply. NRS 057 and SANS 474 set compulsory certification for meters and all the municipalitieis should adhere to such. In terms of calibration standards, new or replacerment components of meters shall be individually calibrated by an accredited calibration laboratory before the installation. Each model of meter shall also be tested to prove that it complies with the relevant standard and accuracy class.

Reply:

a) GREEN POINT STADIUM

The information was provided by the Provincial Department of Local Government in the Western Cape.

(i) (aa) Number of events held over the past three financial years:

	July 2013 – June 2014	July 2014 – June 2015	July 2015 – June 2016
TOTAL	104	118	117

(bb) What events were held over the past three financial years:

	July 2013 – June 2014	July 2014 – June 2015	July 2015 – June 2016
Concerts	3	7	2
Film Shoots	42	30	39
Sporting Events	27	34	34
Religious Events	0	2	3
Corporate Events	32	45	39
TOTAL	104	118	117

(ii) Total operational costs in 2013/14, 2014/15, 2015/16. This expenditure is recovered from the event organisers.

 

	2013 – 2014	Total R	2014 – 2015	Total R	2015 – 2016	Total R
Concerts	3	R1,867,060	7	R3512,211	2	R1,047,834
Film Shoots	42	R271,171	30	R489,115	39	R203,480
Sporting Events	27	R120,775	34	R2,698,085	34	R6,346,455
Religious Events	0	0	2	R688,580	3	R1,298,492
Corporate Events	32	R516,802	45	R1,065,230	39	R779,960
TOTAL	104	R2,775,808	118	R8,453,221	117	R9,676,221

(ii) Revenue in 2013/14, 2014/15, 2015/16

	2013 – 2014	Total R	2014 – 2015	Total R	2015 – 2016	Total R
Concerts	3	R3,578,252	7	R5,421,051	2	R123,022
Film Shoots	42	R1,229,604	30	R1,433,825	39	R789,539
Sporting Events	27	R2,295,849	34	R5,510,302	34	R9,798,168
Religious Events	0	0	2	R1,022,785	3	R2,132,795
Corporate Events	32	R1,375,792	45	R2,459,238	39	R1,103,524
TOTAL	104	R8,479,497	118	R15,847,200	117	R13,947,048

(iv) Maintenance costs in 2013/14, 2014/15, 2015/16

The information requested is not recorded per event.

(v) The Stadium is fully operational and the intention is to establish a Municipal Entity which will become operational on 1 February 2018.

(b) MBOMBELA STADIUM

The City of Mbombela Local Municipality was contacted to provide a response to the above with particular reference to the Mbombela Stadium.

The response from the Municipality to the above-mentioned questions regarding the Mbombela Stadium is as follows:

(i) Number of events held

March 2014 – Feb 2015

Inside Bowl – Sport Events

• 21 Football
• 13 Rugby

Non- sport events

• 196 Events (Ranging from small meetings with no income or costs to large events attended by 55 000 persons)

March 2015-Feb 2016

Inside Bowl- Sport Events

• 19 Football
• 8 Rugby

Non- sport events (Small meetings, conference etc)

• 232 Events (Ranging from small meetings with no income or costs to large events attended by 55 000 persons)

March 2016-Feb 2017

Inside Bowl – Sport Events:

• 10 Football Matches
• 11 Rugby Matches

Non- sport events (Small meetings, conference etc)

• 223 Events ((Ranging from small meetings with no income or costs to large events attended by 55 000 persons)

(ii) Total operational costs

2014/15	2015/16	2016/17
R13,219,496.81	R9,232,754.21	R6,189,906.69

(iii) Revenue

2014/15	2015/16	2016/17
R14,194,076.22	R10,268,543.99	R 9,188,502.25

(iv) Maintenance costs

2014/15	2015/16	2016/17
R15,278,337.57	R13,481,344.75	R9,899,012.22

(v) The facility is being managed by a private operator in close cooperation with the City of Mbombela. The operator is responsible for the daily management of the facility and receives a monthly management fee from the municipality. The City is kept informed of the activities at the Stadium. Events are hosted on a self- sustaining basis. Small non- profitable events are being cross subsidised by the income from large profitable events. The facility is being managed with a strong focus on community accessibility and not only on a commercial basis. Much less activities would be hosted if profit was the only consideration. In addition to commercial activities the facility is being used on a daily basis by the local marathon, cycling, junior wrestling, local football clubs etc.

It is ideal to have football and rugby anchor tenants at the stadium as a platform to sell hospitality suites, advertising, naming rights etc.

The Steval Pumas, being a Rugby Team participating in the Premier Division of the Currie Cup Competition is based at the Stadium. The team plays all its Currie Cup home matches at the stadium. Four International Rugby matches have been hosted at the stadium since 2010 and the stadium has been included in the 2023 Rugby World Cup Bid Document that will be submitted to the IRB on 1 June 2017.

The previous football anchor tenant at the stadium namely Mpumalanga Black Aces FC was sold and the club has been relocated to Cape Town and is playing under a new name, Cape Town City FC. SuperSport United FC has entered into a three-year agreement with the City of Mbombela and Mbombela Stadium to play their top home matches as well as cup games at the Mbombela Stadium.

Annual provision is made on the municipality`s budget for the maintenance of the facility.

Reply:

The information was provided by the Gauteng Provincial Department of Cooperative Governance Traditional Affairs.

1.

(a) (i) Very poor – 0%

(ii) Poor – 2%

(iii) Fair – 12%

Good – 40%

Very good – 46%

(b) (i) Very poor – 0

(ii) Poor – 164 km

(iii) Fair – 984 km

Good – 3200 km

Very good – 3852 km

(c) The assessment was conducted in 2012.

(2)

(a) (i) The rand value is R11.25 billion.

(ii) The distance in kilometres in respect of the backlog or resurfacing and rehabilitation of roads is 2 500km.

(b) A total amount of R325 million has been allocated in the current budget.

Reply:

The Minister cannot express an opinion on the exercise of an authority that has been directly given by Parliament to municipalities and communities nor can he seek to influence the municipalities and communities not to exercise their prerogative. Municipalities and interested communities have the prerogative to establish SRAs provided they do so in accordance with the provisions of section 22 of the Municipal Property Rates Act. To that end, the Department can provide advisory support to municipalities where required on the interpretation of the provisions as well as with respect to any implementation challenges associated with those provisions that municipalities may require guidance with.

Reply:

(a)(b)(i)(ii)(aa)(bb)(cc)(dd)(ee)(ff)

The Department and the Entities reporting to the Minister did not procure any services from and/or made any payments to the Decolonisation Foundation.

Reply:

(1) Listed below are municipalities with payment arrangements, however these municipalities have defaulted at some point. These key defaulting municipalities’ combined contribution to overdue municipal debt is 87%.

Table 1: Municipalities with valid payment arrangements, as at 31 January 2017

See the link: http://pmg-assets.s3-website-eu-west-1.amazonaws.com/RNW87Table-170605.pdf

(2)(a) Section 139(5) states that if a municipality, in financial crisis, breaches its obligation to provide basic services or admits that it is unable to meet its financial commitments, the relevant provincial executive authority must impose a financial recovery plan. The Minister can only intervene in terms of Section 139(7) if the provincial executive authority cannot adequately exercise its power to perform the functions referred to in sub-sections 4 or 5. The national executive authority must then intervene.

National and provincial government is obligated, in terms of Section 154 of the Constitution, to support and strengthen the capacity of municipalities in managing their own affairs and exercising their own power to carry out functions. In holding municipalities accountable, CoGTA as part of the Inter-Ministerial Task Team on Eskom debt, has been in discussion with Premiers, MECs and Mayors. The Department has had engagements with various stakeholders to resolve the issue of Eskom debt. The following agreements were reached:

• Eskom proposed to reduce the current interest rate charged to municipalities that are in arrears from 5% to prime plus 2,5%.
• Eskom will review charging interest after 15 days as opposed to 30 days, in terms of the PFMA.
• Eskom has agreed to allocate the payments by municipalities first toward the principal debt before the interest.
• The majority of municipalities have been assisted to enter into payment agreements. In August 2016, only 24 municipalities had agreements in place. However, as at January 2017, it has increased to 54.
• The Inter-Ministerial Task Team is in the process of resolving the legislative matters on electricity reticulation between Eskom and municipalities.

(3) Based on Eskom’s interaction with municipalities and the Inter-Ministerial Task team (DPE/CoGTA/NT) during 2016, the following common challenges were identified as contributing to the municipalities not honouring their financial obligations with Eskom:

i) Financial

• Cross-subsidisation of electricity revenue for other municipal services.
• Electricity tariff setting is not cost-reflective.
• Some municipalities are grant-dependent.
• Notified Maximum Demand (NMD) penalties and interest on arrears makes it difficult to decrease the principal debt.

ii) Technical

• Eskom charges a high penalty when municipalities exceed the NMD.
• Theft and losses of electricity equates to as much as 50% of purchases in some municipalities.
• A maintenance backlog in infrastructure results in high technical losses.

iii) Legislative Framework

• Municipalities are unable to effect credit control measures in Eskom-supplied areas of electricity supply.

Reply:

(a)(i) The Department of Cooperative Governance and Traditional Affairs

did not undertake directly.

(aa) any drilling and/ or installation of boreholes

(bb) any refurbishment of boreholes

(cc) any equipping of boreholes.

(ii) According to the information received from the municipalities,

(aa) drilled and/ or installed 33 boreholes

(bb) refurbished 3 boreholes

(cc) equipped no borehole.

Only Mpumalanga and Northern Cape reported information on boreholes completed as indicated in the table below. All other provinces had not completed any work on boreholes since November 2016.

Province	Municipality	a. How many boreholes
		ii (aa). Drilled	ii (bb). Refurbished	ii (cc). equipped
Mpumalanga	Govan Mbeki LM	24	0	0
	Lekwa LM	6	0	0
Northern Cape	Ga-Segonyana	3	2	0
	Gamagara	0	1	0
TOTAL		33	3	0

Reference: A detailed list is attached in Annexure A.

(b): (aa) drilling and/ or installation of 33 borehole amounts R 6593 564.21

(bb) refurbishment of 3 boreholes amounts R 299 850.00

(cc) as there was no equipping of boreholes, no cost incurred.

Reference: A detailed list is attached in Annexure A.

(c): Expenditure were funded from MIG of the Department of Cooperative Governance and MWIG of the Department of Water and Sanitation

The details of funding are as given hereunder

(aa) drilling and/ or installation costs of total R 6 593 564.21, MIG provided total R 6 057 499,21 (Mpumalanga got R 6 057 499.21 and Northern Cape got R 264 390.00). MWIG provided the rest R 536 065.00 which went to Northern Cape alone.

(bb) refurbishment costs of total R 299 850.00 was provided by MWIG and Northern Cape got all of it.

(cc) No cost was incurred.

Reference: A detailed list is attached in Annexure A.

(d): The companies to which the contracts were awarded to were:

1. M/s Sandmix Construction and Development and M/s Asdu Trading got the contracts for Mpumalanga municipalities and
2. M/s Kimopax/ Gobora Drilling AB Pumps Contractors gt the contrats of Northern Cape municipalities

Reference: A detailed list is attached in Annexure A.

(e): The boreholes location details are given in Annexure A.

Reply:

The following information was received from the Provincial Department of Co-operative Governance, Human Settlements, and Traditional Affairs (CoGHSTA) in Limpopo.

a) and b)

(i) Bela-Bela Local Municipality is owed by the following departments:

Departments	Amount	Payment received in March 2017
National Public Works	R202,130.42	R0.00
Provincial Public Works, Roads and Infrastructure	0.00	R0.00
Agriculture	R14,206.00	R0.00
Education	R1,463,428.37	R500 000.00
Rural Development and Land Reform	R0.00	R0.00
TOTAL:	R1 679 764.79	R500 000.00

c) The above amounts are owed since 2011.

d) The reason for non-payment is that there are government properties that are built on communal land and some properties are not registered.

e) In the last Debt Verification session held with Bela-Bela Local Municipality, the Departments owing indicated that they will pay some of the outstanding debt by 31 March 2017. Only the Department of Education honoured the commitment to pay and an amount of R500 000.00 was paid by 31 March 2017.

The National Department of Co-operative Governance (DCoG) was able to collect information from the following local municipalities:

• Lephalale Local Municipality
• Lim 368 (i.e. former Modimolle and Mookgophong Local Municipalities)
• Thabazimbi Local Municipality

a) and b)

(ii) Lephalale Local Municipality is owed the amounts reflected on the link below by the following departments:

https://pmg.org.za/files/RNW626Table-170522.pdf

c) The above amounts have been owed for more than 150 days.

d) The municipality has not provided the reasons for non-payment.

e) Information regarding when the amounts will be paid has not been submitted.

a) and b)

(iii) Lim 368 (i.e. Modimolle and Mookgophong LMs) is owed by the following departments (see link below):

https://pmg.org.za/files/RNW626Department-170522.pdf

c) The above amounts have been owed for more than a year (1yr).

d) The municipality has not provided any reasons for non-payment.

e) Information regarding when the amounts will be paid has not been submitted.

a) and b)

(iv) Thabazimbi LM is owed by the following departments:see link below

https://pmg.org.za/files/RNW626ThabazimbiLM-170522.pdf

c) Some of the amounts have been outstanding since March 2008.

d) The municipality has not provided the reasons for non-payment.

e) Information regarding when the amounts will be paid has not been submitted.

Reply:

1. As at 15 December 2016, information at our disposal indicates that 7 municipalities have established 49 Special Rating Areas (SRAs) between them in terms of section 22 of the Local Government: Municipal Property Rates Act, Act 6 of 2004 (“the Act”). The 7 municipalities are Breede Valley, City of Cape Town, eThekwini, KwaDukuza, Mossel Bay, Stellenbosch, and Nelson Mandela Metro.

2. Taking into account that the establishment of SRAs is a voluntary arrangement, we are not in a position to provide an independent authoritative view because we have not undertaken an assessment of whether the 49 SRAs that have been established by the 7 municipalities have achieved the objectives for which they were voluntarily established for.

Section 22(2) of the Act requires a municipality to consult and “obtain the consent of the majority of the members of the local community in the proposed special rating area who will be liable for paying the additional rate”. Accordingly, it is reasonable to conclude that if the majority of the affected members of the community are of the view that the SRA is not achieving its objectives, they can call for its dissolution. In this regard, the policies of all 7 municipalities provide for the municipality to dissolve the SRA upon written application by the majority of the owners of rateable properties within the SRA.

The establishment of SRAs is normally initiated by property owners (and not by municipalities) who make proposals to municipalities and these are established for a fixed period, which is ordinarily not more than five years, but their geographic boundaries and life spans can be amended by the municipality after consultations with the affected property owners if the majority are in favour of such amendment.

3. Following from (2) above, we are not in a position to answer this question at this point in time.

 

 

Reply:

According to the information received from Mpumalanga Provincial Department of Cooperative Governance and Traditional Affairs:

(a) The annual total remuneration package payable to the municipal manager of Emalahleni Local Municipality, Mr. T van Vuuren, is R1 242 967.

(b) The annual travel allowance paid to Mr. van Vuuren is R757 260

Reply:

In October 2016, the Department received correspondence from the Honourable Kevin Mileham, MP. The correspondence was with regard to a forensic report commissioned within the Bela Bela municipality by KPMG. The Honourable Member was requesting a copy of the forensic report for purposes of review and distribution to the Bela Bela Councillors.

According to the Honourable Member, the forensic report was finalised in May 2016. The report is alleged to be available at the Internal Audit department for Councillors to view although they are not allowed to take copies.

Following the request from Parliament, on 04 November 2016, the Department prepared a correspondence requesting the municipality to submit a copy of such a report with a view to assess the report and advise accordingly. The correspondence to the municipality was approved from the Acting Director-General’s office.

On 11 November 2016, the Department received a correspondence from the municipality as a response. The municipality indicated that Council processes are still underway to ensure that the recommendations emanating from the forensic report are implemented. In this regard, they requested to be granted space and time to finalise internal processes before releasing a copy of the report.

 

During its special meeting on the 15th September 2016, the Municipal Council, resolved, amongst others that:

• the report on investigation into various allegations of irregularities in the municipality be noted;
• legal advice sought with regard to the processing of the recommendations of the report to ensure that Council is insulated from any potential litigation;
• all the recommendations of the report which may necessarily not need legal opinion be implemented and subsequently referred to MPAC for processing and reporting to Council;
• the outcomes of the legal opinion on the recommendations of the forensic report be referred to MPAC for further processing and reporting to Council;
• the Manager for Planning and Economic Development, as the designated Acting Municipal Manager during the forensic investigation period, be authorised to handle all the processes of the report until its conclusion in accordance with Council’s Oversight and Governance Structures as outlined above.

 

Reply:

The information requested by the Hon Member is not readily available within the Department, however, we have requested the office of the Premier in KwaZulu-Natal to assist and will submit to you as soon as it becomes available.

Reply:

Based on the response provided by the provincial Gauteng Cogta, Ekurhuleni Metropolitan Municipality (EMM) opted to provide a similar response to the one that was initially forwarded to the province. As a result, Gauteng Cogta requested national DCoG to use the initial response forwarded by Ekurhuleni. Below is an outline of the initial reply from Ekurhuleni metro:

Ekurhuleni Metropolitan Municipality does not enforce court orders. It is the responsibility of sheriffs of the court to enforce and implement court orders. Ekurhuleni also stated that in regard to court orders relating to evictions on illegally occupied land and contravention of by-laws, for instance, sheriffs of the court are agents responsible for enforcement of these court orders.

Moreover, according to Ekurhuleni, the liquor licenses are issued by Gauteng Provincial Liquor Board, which assumes responsibility over the existence or not of a shebeen or liquor outlet. In other words, Ekurhuleni does not have authority nor form part of processes undertaken by the Liquor Board to oversee existing shebeens and other liquor outlets. Therefore, Ekurhuleni maintains that it is not its responsibility to close down illegal shebeens in keeping with court orders.

Reply:

The response below were provided by the two municipalities:

Yes, investigations have been launched with regard to the financial mismanagement by the (a) Sekhukhune District Municipality and (b) Elias Motsoaledi Local Municipality in Limpopo. The Special Investigating Unit (SIU) has been mandated to investigate the allegations, as contemplated in Section 2(2) of the SIU Act, in respect of the affairs of (a) the Greater Sekhukhune District Municipality and (b) the Elias Motsoaledi Local Municipality as authorized by Proclamation R59 of 2016 published in Government Gazette No. 40348 dated 14 October 2016.

(i) The terms of reference are published in Government Gazette No. 40348 dated 14 October 2016 (Annexure A).

(ii) The Department is still engaging with the SIU regarding the anticipated finalisation date of the investigation.