JOE GQABI DISTRICT MUNICIPALITY PROFILE 1 TABLE OF CONTENTS 1. 1.1 1.2 1.3 1.4 2. 2.1 2.2 2.3 2.4 2.5 2.6 3. 4. 4.1 4.1.1 4.1.2 4.1.3 5. 6. 7. EXECUTIVE SUMMARY INTRODUCTION Overview Municipalities within the District Political and Administrative Leadership and Seat of District Political Representation SERVICE DELIVERY Household Infrastructure Sanitation Water Electricity Refuse Removal Service Provider AUDIT OPINIONS STATE OF LOCAL GOVERNMENT ASSESSMENT Overview of findings on assessment in the Municipality Governance Financial Management and Viability Service Delivery INFRASTRUCTURE PRIORITIES IN TERMS OF THE MUNICIPAL TURN-AROUND STRATEGY MIG PROJECTS VULNERABILITY CLASSIFICATION 2 3 4 4 5 5 7 7 7 7 7 8 8 8 8 9 9 9 9 9 9 10 12 EXECUTIVE SUMMARY Joe Gqabi District Municipality (formerly Ukhahlamba) is overwhelming rural. Land issues include access to land and the limited land that can sustain intensive farming. There are four local municipalities within the district. The government is the largest employer in the district and social grants are an important component of household incomes. Water and sanitation backlogs are still prevalent. The district has low access to infrastructure, with levels of improvement from 37% in 2000 to 46% in 2009. This was mainly driven by an increase in access to electricity, as well as some improvement in access to hygienic toilets and piped water. While 35% of households do still not have access to clean water, 20% were still without toilets in 2009. The audit opinions for the District Municipality and three of the four local municipalities have improved over time, although only one local achieved a financially unqualified opinion with findings in 2009/10. The State of Local Government Assessment found challenges in addressing basic service backlogs. The provision of water in rural areas remains a priority, with problems with water supply dams due to drought. In terms of its Municipal Turn-Around Strategy the District identified the need to increase capacity and funding for water and sanitation, including upgrading of bulk infrastructure and funding for operations and maintenance. The provision of FBS also needed to be overhauled, with a lack of personnel and indigent registers. Only one of the four local municipalities in the Joe Gqabi District has been classified in the category of most vulnerable by DCoG in terms of functionality, socio-economic profile and backlog status. This profile confirms that infrastructure prioritisation in Joe Qgabi District should focus on water and sanitation, with both capacity and funding needs to be addressed. 3 1. INTRODUCTION 1.1 Overview1 Joe Gqabi District Municipality is made up of four local municipalities. Aliwal North, with a population of 40 000, and on the N6 between Queenstown and Bloemfontein, is the main commercial and tourism centre. Smaller urban service centres include Steynsburg, Burgersdorp, Barkly East, Lady Grey, Sterkspruit and Maclear. The climate is harsh: large temperature fluctuations, unseasonable frost and cold, and relatively low rainfall mean only less sensitive crops can be grown. Winters are milder in Elundini, where it is more suitable for crop cultivation. The southern Drakensberg lies in the eastern part of the district and the land becomes flatter towards the west. The steep mountain slopes are used for grazing. The Orange River is the most important source of water in the district. The Gariep Dam is the largest in South Africa and, together with the Fish River Scheme, is a major source of water for irrigation. Many places in Senqu and Elundini have a high groundwater development potential. Joe Gqabi District is overwhelming rural. The municipalities in the wetter eastern part of the district are mountainous and have communal land as well as commercial farming. The municipalities in the west of the district are flat with Karoo type vegetation and consist mainly of commercial agriculture, which drives the economy, with extensive farming of sheep and cattle. Subsistence and emerging farmers are to be found in the communal land areas. Land reform and emerging farmers are critical to a new agrarian economy. Access to land is still a challenge in the district. There are only 233 hectares of high potential arable land in Joe Gqabi District. With limited rain-fed arable land for crop production, irrigation schemes and stock farming play a significant role in agriculture. Intensive farming only occurs in areas where water and infrastructure are available. The limited land which can sustain intensive farming, and land which has been identified as having a high agricultural potential, should be reserved for farming in order to enhance food security and therefore economic welfare. It is important that other land uses not expand into these areas. There is some forestry in the Maclear-Ugie area and a large timber processing plant is being built at Ugie. There is little agricultural processing in the district. Tourism is growing, although its impact so far has been small. Unique tourist attractions in the district include the only ski resort in South Africa, the largest dam in the country, and hot springs. The government is the largest employer in Joe Gqabi, and social grants are a very important component of household incomes. The informal sector is relatively small and mainly concerns the sale of food and household goods. There are processes underway in the district to develop women, youth and the disabled. HIV prevalence among Source: Gaffney’s, November 2009: Local Government in South Africa 2009-2011, Official Yearbook: p 582 - 584 1 4 pregnant women is over 25% and there are numerous initiatives to curb its spread and effects on communities. Educational levels have improved but there is still a lack of tertiary and technical learning facilities in the district. Housing and crime remain serious social issues. Water and sanitation backlogs are still prevalent in the district. Road access is another critical issue and the roads need constant maintenance and repair. 1.2 Municipalities within the Joe Gqabi District The details of the four local municipalities within the District are tabled below: Table 1: Statistics of the Joe Gqabi District and Local Municipalities Municipalities within the District Joe Gqabi District (formally Ukhahlamba) Municipality Elundini Local Municipality Area (km²) in 2009 Area (km2) after 2011 Local Govt Elections & % change Population No. of Households Poverty Rate 25,662 67 25 662 67 - 301 305 88,241 71.17% 5 064 53 5 064 53 - 120 804 34,740 77.62% 6,91108 4,35765 7,329.42 8 911 05 4,35765 7,32942 - 23,166 41,065 115,469 8,019 11,181 34,301 78.65% 53.27% 75.14% Gariep Local Municipality Maletswai Local Municipality Senqu Local Municipality Political and Administrative Leadership and Seat of District2 1.3 Political Leadership: Executive Mayor: Mr Zibonele Dumzela Administrative Leadership: Municipal Manager: Mr Zolile Williams The head office of the District is located in Barkly East. 1.4 Political representation3 Table 2: Local Government Election 2006 / Provincial and National Elections 2009 comparison: Leading Parties in the Elections 1st 2nd 3rd 4th Local Government Elections 2006 Party Party Votes Ward Votes and % and % ANC DA UDM PAC75,765 Other Totals 75,765 4,928 3,514 1,540 264 86,011 88.1% 5.7% 4.1% 1.8% 0.3% 100% 72,896 4,600 1,900 1,938 3,134 84,468 86.3% 5.4% 2.2% 2.3% 3.7% 100% Councillor Seats Party Seats % ANC DA UDM 21 2 23 91.3% 8.7% Totals 46 100% Provincial Elections 2009 Party Votes and % National Elections 2009 Party Votes and % ANC COPE UDM DA Other ANC COPE UDM DA Other 86,865 11,070 4,783 3,187 4,022 109,927 2 Source: Joe Gqabi DM; August 2011 3 UPDATE Aug’09: DC40 seats - ANC(90%) 9 seats, DA(10%) 1 seat, Total 10 DC40 seats 5 79.0% 10.1% 4.4% 2.9% 3.7% 100% 91,238 11,145 4,955 3,199 3,809 114,346 79.8% 9.7% 4.3% 2.8% 3.3% 100% Figure 1: 2011 Local Government Election results and seat allocations: e The ANC is the leading party in terms of proportional DC40 Seats in Joe Gqabi, with 9 of 10 seats. 6 2. SERVICE DELIVERY4 2.1 Joe Gqabi District Municipality Household Infrastructure Household Infrastructure Overview EC - DC14 Joe Gqabi District Municipality 0.80 0.70 0.60 0.50 Index 0.40 0.30 0.20 EC - DC14… 0.10 0.00 19961997199819992000200120022003200420052006200720082009 Source: IHS Global Insight Regional eXplorer version Joe Gqabi district has the fourth lowest access to infrastructure amongst districts in the province. An overview of household access to infrastructure in the district shows an improvement from a low level of 37% in 2000 to 46% in 2009. The main contributor to the increase in access is electricity infrastructure. 2.2 Sanitation With regard to access to sanitation, the district municipality’s household access to hygienic toilets went up from 22% in 2001 to 56% in 2009. The improvement in access to sanitation in general in the municipality is mainly due to the increase in the use of pit latrines with ventilation. About 20% of the households were still without toilets by 2009. 2.3 Water There are lower levels of access to clean water in the district. Access to piped water above RDP level increased from 39% to 50% from 1996 to 2009. Similarly, there has been an increase as well in access to piped water below RDP level and more than 20% of households are now getting this service. More than 35% of the households do not have access to clean water. 4 Sources: IHS Global Insight Regional eXplorer version 574 and Municipal Demarcation Board, 2008: National Report on Local Government Capacity, District and Local Municipalities, MDB Capacity Assessment, 2007/2008. 7 2.4 Electricity The increase in electricity connections is the biggest infrastructure achievement in the municipality. In 1996, household access to electricity connections was at a lower level of 28%. Access has, however, increased over the years reaching 58% by 2009. 2.5 Refuse removal There has been a slight increase in access to formal refuse removal service from 1996 to 2009 in the Municipality. Access has gone up from 18% in 1996 to 27% in 2009. Personal refuse removal also went up over the years and in 2009 it had reached 60%. The district is rural and the low levels of formal refuse removal must be taken in the context of low settlement densities, where on-site disposal or backyard burning of waste is sometimes appropriate. 2.6 Service provider Joe Gqabi district does not have authority and does not perform the electricity reticulation function. The district, however, has authority and performs potable water and sanitation functions. The district has no authority but is also performing the refuse removal, refuse dumps and solid waste disposal function and has some capacity for these functions. 3. AUDIT OPINIONS Table 3: Audit Opinions of the District and Local Municipalities Municipality Joe Gqabi DM Elundini LM Gariep LM Maletswai LM Senqu LM Audit Opinion 2005/6 Disclaimer Disclaimer Disclaimer Disclaimer Disclaimer Audit Opinion 2006/7 Disclaimer Disclaimer Adverse Adverse Qualified Audit Opinion 2007/8 Adverse Qualified Disclaimer Adverse Qualified Audit Opinion 2008/9 Adverse Qualified Disclaimer Disclaimer Financially unqualified with findings Audit Opinion 2009/10 Qualified Qualified Qualified Disclaimer Financially unqualified with findings Source: Auditor-General 2009 and 2011, see www.agsa.co.za Significant improvement in audit results of Senqu local municipality were registered in 2008/9 and 2009/10. This was against a backdrop of poor audit results in 2005/6, 2006/7 and 2007/8. Those of Joe Gqabi district municipality indicates a poor state of management of resources, since despite obtaining a qualified audit outcome in 2009/10, in the last four financial years it was awarded two disclaimers and two adverse audit results. 8 4. STATE OF LOCAL GOVERNMENT ASSESSMENT 4.1 Overview of findings on assessment in the municipality 4.1.1 Governance District wide forums such as a Speakers Forum and Mayors forum were established. The municipality requires assistance with regard to its rules of order. The Speaker and Chief Whip require capacitating on their respective roles and responsibilities. There is no sound working relationship between the municipality and the CDWs deployed in local municipalities. 4.1.2 Financial Management and Viability Almost 94% of the municipality’s income is in the form of grants. The municipality has a poor record of audit opinions during the previous five (5) financial years. From 2003/4 to 2005/6 the municipality received disclaimers, an adverse opinion in 2006/7 and a qualified opinion in 2007/8. The financial system currently in use in the municipality is posing challenges. A financial bailout in the amount of R20 million was received from the provincial Department of Local Government and Traditional Affairs. 4.1.3 Service Delivery Additional MIG funding is required to address backlogs in respect of water, sanitation, electricity and roads. The municipality is currently focussed on a plan to provide water in the rural areas. The Mount Fletcher water treatment plant requires electricity. Although rural communities are provided with free basic water, huge backlogs still exist. The district municipality is assisting local municipalities to update their indigent registers. Challenges were experienced with the water supply dams in Gariep, Senqu and James Town, which were empty at the time of the assessment. 5. INFRASTRUCTURE PRIORITIES IN TERMS OF THE MUNICIPAL TURNAROUND STRATEGY The Joe Gqabi District Municipality identified a number of priorities for infrastructure delivery in the Joe Gqabi Turn-Around Strategy. These relate to water, sanitation and access to free basic services. Table 4: Infrastructure delivery in terms of the MTAS Challenges Access to water and sanitation Access to Free Basic Services Supply chain is under staffed and this results in supply chain processes being too lengthy and delay the implementation processes Lack of an FBS unit and dedicated personnel Inaccurate Indigent register. Struggling with cleansing and 9 Municipal funding needs to be increased verification of Indigent data. Bulk infrastructure is in need for upgrade and refurbishment Municipal Actions Appoint more people to capacitate supply chain the section Municipality is looking at other avenues to access funding including O & M Other support and interventions Communities are not yet aware of FBS. Meanwhile the FBS unit is not established, ISD officials are currently dealing with the management of FBS. Investigating other avenues of sourcing funding DM is also planning to fine tune their organogram to cater for FBS personnel. ISD officials are currently conducting FBS awareness raising campaigns in communities. National Treasury should review and streamline SCM processes in order to accelerate service delivery More funds will be requested from National Treasury to deal with both Free Basic Water and Free Basic Sanitation backlogs. There is a need for a strategy on how to access unspent infrastructure funds from National Treasury All FBW & FBSan challenges will be forwarded for the attention of the Provincial Service Delivery Improvement Task Team led by DWA . Assistance required to access the Regional BIG from DWA. 6. MIG Projects Table 5: MIG projects Municipality Project name Joe Gqabi DM Gariep: Steynsburg - Proposed Orange Fish Tunnel Pumping Scheme Mt Fletcher Bulk Water Supply Scheme Phase 2 Senqu: Barkly East Bucket Eradication Phase 2 Ukhahlamba DM: Upgrading of Sterkspruit Water Treatment Works Registered MIG funds Total actual expenditure in the 2010/11 financial year Project status (Registered/design/te nder/construction) Project category (e.g. water, sanitation, PMU) R 70,995,547.00 R 9,029,081.67 Construction Water R 201,249,374.00 R 25,917,355.37 Construction Water R 3,128,963.96 R 2,781,608.82 Construction Sanitation R 48,265,951.00 R 21,316,618.42 Construction Water 10 Elundini LM Maletswai LM Senqu LM Ukhahlamba: Elundini - Ugie Water Infrastructure for the Town Aliwal North Area 13 Bulk Sewer - Phase 2 Lady Grey Bulk Water Upgrade Ugie Bulk Sanitation Infrastructure Planning Studies 'Eluding Rural Areas Steynsburg Bucket Eradication Phase 3 Bucket Eradication & Sanitation in Khwezi-Naledi, Lady Grey Aliwal North Treatment Plant Refurbishment Phase 3b, 4, 5 Jamestown Bucket Eradication and Sanitation - Phase 2 Elundini Rural Water Programme Mahanyaneng Access Road Ntabelanga Access roads Lehana Access Road Renovation of Maclear town hall T83 Matugulo via Tsikarong access road Mount Fletcher Access roads Moroga to Sophonia Mangoloanang East Access Rehabilitation of ugie streets Renovation of Mount Fletcher town hall PMU Jamestown Cemetery Hospital access road Dukathole phase 2 taxi route The Upgrading of Roads in Wards 7,8,9 and 12 Phase 2 Upgrading of Roads and Stormwater Drainage Wards R 19,735,578.00 R 1,718,488.13 Construction Water R 5,342,890.36 R 5,363,105.54 Construction Sanitation R 25,450,044.00 R 9,028,610.63 Construction Water R 49,104,611.00 R 2,088,080.64 Construction Sanitation R 2,500,000.00 R 248,771.02 Construction Water R 24,108,039.00 R 344,838.95 Design & Tender Sanitation R 12,147,288.00 R 1,165,985.20 Design & Tender Sanitation R 13,694,047.74 R 3,786,464.25 Design & Tender Water R 38,550,081.76 R 849,150.06 Design & Tender Sanitation R 182,117,245.00 R 42,628,289.29 Design & Tender Sanitation R 3,700,000.00 R 2,361,778.40 Completed Roads & s/water R 792,000.00 R 153,147.03 Completed Roads & s/water R 4,741,297.62 R 2,537,349.30 Completed Roads & s/water R 1,900,000.00 R 1,380,258.82 Completed Building R 7,671,144.00 R 3,649,639.35 Construction Roads & s/water R 1,827,250.00 R 11,995,374.20 R 705,445.95 R 4,683,337.41 Construction Construction Roads & s/water Roads & s/water R 6,473,303.50 R 1,980,297.60 Construction Roads & s/water R 10,915,072.78 R 108,569.15 Design & Tender Roads & s/water R 1,170,968.00 R 365,423.04 Completed No status Building PMU R770104.2 R770104.2 Construction Cemeteries R4692828.43 R3644526.19 Construction Roads & s/water R4500000 R4500000 Construction Roads & s/water R 14,500,000.00 R 9,173,464.96 Construction Roads & s/water R 12,000,000.00 R 7,554,719.32 Construction Roads & s/water 11 1,2,&3 Phase 1 Senqu Lm:Mogesi School Bus Route, Sterkspruit Construction of new Solid Waste Site Sterkspruit Taxi Rank and Hawker Facility Project Management Unit Source: All MIG projects, 2011 June R 4,083,024.76 R 1,041,534.14 Completed R 2,736,000.00 R 128,192.24 Design & Tender Roads & s/water Solid waste disposal site R 5,000,000.00 R 307,800.00 Design & Tender Roads & s/water No status PMU In accordance with the legislation, Joe Gqabi, Elundini, Senqu and Maletswai submitted their 2011 June MIG projects reports. Except for Senqu, these reports were without the signature of the accounting officer which is necessary for accuracy and their credibility. Additionally, Senqu and Maletswai failed to report on the state of affairs in their Project Management Units. In Joe Gqabi MIG projects are about water and sanitation of which most are at a construction phase. Roads and water in Elundini are the main projects. Elundini has a number of projects that have been completed. In Maletswai there are few MIG projects and all of them are under construction. There are six MIG projects in Senqu of which four are about roads and water. Only one project has been completed in Senqu. 7. VULNERABILITY CLASSIFICATION The DCoG Municipal Spatial Classification System was designed to develop municipal profiles according to spatial location, based upon results from indicator sets on functionality, socio-economic profile and backlog status. Its purpose is to inform a differentiated approach to municipalities. The four municipal classifications developed by DCoG are: Class 1: Most vulnerable (57 local municipalities) Class 2: Second most vulnerable (58 local municipalities) Class 3: Second highest performing (58 local municipalities) Class 4: Highest performing (58 local municipalities) The four local municipalities in the Joe Gqabi District can be classified as follow: Table 6: Vulnerability Classification Local Municipality Elundini Gariep Maletswai Senqu Classification Most vulnerable Second most highly performing Second most highly performing Second most vulnerable 12 From this table it is evident that only one of the four local municipalities in the Joe Gqabi District fall into the most vulnerable category. 13
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