Posted by: Kevin Mileham | January 23, 2012

Another year, another shocking audit…

From a press statement issued by Cllr. Kevin Mileham on behalf of the DA’s Buffalo City Caucus on 23/1/2012:

Reacting to the Auditor-General’s report on Buffalo City’s annual financial statements for 2010/11 released last week, the Democratic Alliance has again condemned the municipality’s lack of urgency in implementing good governance practices.

DA Chief Whip, Cllr. Kevin Mileham, noted that the Auditor-General had issued an adverse opinion on the metro’s finances for the 2010/11 financial year, following disclaimed opinions in 2008/09 and 2009/10. An adverse opinion is worse than a disclaimed opinion as it means that the Auditor-General believes that the financial statements of the municipality contain material misstatements, while a disclaimed opinion arises when the AG is unable to form an opinion on the statements as a result of lack of evidence.

Mileham pointed out that the issues raised in previous audit reports had, for the most part, remained unaddressed. “The Democratic Alliance has, on numerous occasions, advised the municipality of the problems inherent in its current supply chain management function, and has in fact raised a motion in council in this regard,” he said. “The irregular expenditure of R349,3 million in the 2009/10 financial year is testament to the municipality’s unwillingness to take bold steps to rectify the problem, including making the tender process more transparent and open to public scrutiny.”

According to Mileham, the poor quality of the municipality’s annual financial statements can be attributed to:

  • A lack of understanding of the accounting requirements;
  • Insufficient skill levels to manage the accounting function properly;
  • A lack of supervision, monitoring and review of daily activities, resulting in underlying information that is inaccurate or not readily available;
  • A lack of supervision and review during the preparation of the annual financial statements; and
  • An inappropriate attitude towards accounting discipline in the municipality.

The report highlighted ongoing inventory problems, incorrect billing, and inadequate/inaccurate record keeping. A number of performance, legislative and operational issues were also emphasised as areas requiring attention.

“Good governance demands stringent control of the finances of the city,” said Mileham. “Buffalo City has been a rudderless ship for too long – the positions of City Manager, Chief Financial Officer and the heads other critical directorates must be filled as a matter of urgency, disciplinary action must be taken against those who have contravened the law and regulations, and processes implemented to ensure that there are no opportunities to waste citizens’ rates and taxes.”

The DA has indicated that it will submit further motions and questions to council regarding the state of the city’s finances and the steps being taken to address them.

Posted by: Kevin Mileham | September 29, 2011

Buffalo City finances – the nightmare continues…

From a press statement issued by Cllr. Kevin Mileham on behalf of the DA’s Buffalo City Caucus on 28/9/2011:

The Democratic Alliance has expressed its outrage over the preliminary financial results submitted by BCM to National Treasury at the end of the financial year in June. According to these figures, Buffalo City underspent on conditional grants by some 20%, underspent on capital expenditure generally by approximately 47%, and incurred irregular expenditure of R197 million.

In addition, according to documentation available from the National Treasury, the city only collected some 91.2% of its (adjusted) budgeted operating revenue, while spending 92.4% of its budgeted operating expenditure. In rand terms, actual revenue amounted to R2.719 billion, while actual expenditure was R3.01 billion. The municipality is therefore running at an operating deficit of R291 million, the third such deficit in consecutive years. The over-expenditure related primarily to bulk purchases (such as electricity and water) and employee costs – both running at nearly 102% of adjusted budget.

Cllr. Kevin Mileham, the DA’s spokesperson for finance in the municipality said that poor financial controls and a lack of capacity were a large part of the problem. “We have had an acting Chief Financial Officer several years now, and, as yet, no steps have been taken to appoint someone permanently to the position,” said Mileham. “This is contrary to the amended Municipal Systems Act, which provides for a person to serve in an acting capacity for no more than 3 months. The problem is replicated throughout the organizational structure of the municipality.” Mileham pointed out that, according to internal municipal reports recently tabled in Council, the city’s debt was growing at more than R9 million per month. “The hole we are in is just getting deeper,” he said.

Mileham indicated that consecutive deficits for 3 or more financial years could be sufficient to trigger a provincial intervention in terms of s138 of the Municipal Finance Management Act. The Democratic Alliance has repeatedly called for greater transparency and accountability in Buffalo City’s finance department, and in particular in the supply chain management function. “Nobody takes responsibility,” said Mileham. “Everyone from the City Manager down blames someone else for the poor performance.”

Posted by: Kevin Mileham | September 28, 2011

To be, or not to be? (Acting, that is!)

There are times, in Council, when it feels like we are part of some elaborate Hollywood movie. Apart from the lavishly over-catered functions, there are the lawsuits, the fraud and corruption, the prima-donnas and the tension. But the real problem is all the actors.

In Buffalo City Metro Municipality, many of our senior management have been in “acting” positions for years. The acting Chief Financial Officer, Mr. Vernon Pillay, has been starring in this role for over two years, since Brian Shepherd left in 2009. The acting Municipal Manager, Mr. Andile Fani was appointed in 2010, and his permanent replacement has still not been identified. The new Municipal Systems Act amendment provides that “[a] person appointed in [such a role] may not be appointed to act for a period that exceeds three months”. This is almost never adhered to. Worse still, in some cases, they are “acting” because the permanent employee is suspended, facing disciplinary action, which is often months or even years in finalising.

The issue is that persons “acting” as directors are generally “acting” in roles well above their pay grade. They lack the qualifications and/or experience to be permanently appointed to such positions, and therefore frequently underperform. This has significant consequences for a municipality facing the service delivery challenges that Buffalo City does. In particular, it means that the decisions made are often questionable or subject to challenge on the grounds that they have been improperly thought through.

One final issue to consider is that these “acting” directors of our multi-billion rand organization are paid an acting allowance equal to the difference between their normal pay grade and that of the role they are fulfilling. When one considers that these  employees have been responsible for the huge amounts of irregular, unauthorised and/or fruitless and wasteful expenditure (R197 million in the last financial year!) within the municipality, we have to ask: Is it worth it?

Posted by: Kevin Mileham | September 6, 2011

100 Days – A report on Buffalo City as a metro

The following press statement was released on 5 September 2011 by the Democratic Alliance’s Buffalo City Caucus:

In our capacity as the official opposition in the Buffalo City Metropolitan Municipal Council, the Democratic Alliance (DA) has compiled a report focusing on the first 100 days of office.

This report provides an overview of the ANC’s governance since the local government elections on 18 May 2011. It also highlights the positive impact that the DA has made during the same period.

Council Meetings

The ANC’s current schedule of council meetings on a quarterly basis is counterproductive to service delivery. For example, the delay in the approval of development and planning issues seriously slows down economic development and job creation.

The DA has proposed that Council convene bi-monthly meetings. More frequent Council meetings will significantly improve debate, service delivery and oversight of the municipality’s administration.

To date, BCMM has not responded to our proposition.

Council Standing Committee Portfolios

To date, not one Portfolio Committee has convened. The composition of said committees was finalized in late June. The DA has written to the Speaker enquiring when committee work will commence, and are left wondering how decisions are being made in the absence of regular meetings.

Allocation of Councillors to Committees, Boards and Other Roles

On several occasions, the Mayor and/or the Speaker has unilaterally appointed DA councillors to committees, hospital boards and the like, without consulting the DA caucus leadership. Recently Executive Mayor Zukiswa Ncita instructed a DA councilor to report to, and attend a board meeting for the Frere Hospital without discussing the matter with either the councillor concerned or the DA caucus leader. The Democratic Alliance objects strongly to this practice, as we are best placed to determine the suitability of a particular councillor for a specific role. We have written to both the Speaker and the Mayor in this regard, and will continue to demand the right to select our own representatives to committees, boards etc.

Corruption & Maladministration

The delayed interrogation and response to the controversial Ernst & Young report, which investigated corruption and mismanagement in the previous Council’s term of office has left a dark cloud hanging over the heads of a number of officials and ANC councillors.

The Democratic Alliance was instrumental in ensuring that the MEC for Local Government returned the report to Council, and has played a leading role in bringing those accountable to book. We anticipate releasing a comprehensive statement on this matter in the very near future.

The poor controls (especially in Supply Chain Management) highlighted by the Oversight Committee and the Audit Committee have been confirmed by the latest Auditor-General’s report.

The DA has submitted motions to the Speaker for debate at the next Council meeting calling for a thorough review of both the Supply Chain Management policy and the operation of the Supply Chain Unit. Transparency of the tender process is a critical element in the success of this Unit and the DA will call for such during the debate.

Service Delivery Issues

Despite Council’s approval of the annual Budget and Integrated Development Plan at the end of May, it comes as something of a shock when senior municipal officials advise that there are no funds available for pothole repairs. On investigation by the DA, it appears that this is an excuse to avoid having to address the countless problems caused by the recent rains.

DA councillors are currently inspecting the state of roads, ward by ward and are assessing the needs for repairs to roads, stormwater drainage, sidewalks, street signage and road markings.

Refuse remains a major issue, both from a collection and general cleanliness perspective. The Democratic Alliance is concerned that Buffalo City must rate as one of the dirtiest in South Africa. In addition, our landfill management leaves much to be desired. The Roundhill and Stoneydrift landfill sites have both caught fire recently, causing distress and health problems for nearby residents. Poor refuse collection/street cleaning has also resulted in a number of stormwater drains becoming blocked during the heavy downpours experienced in June and July. This has had catastrophic consequences for residents, particularly those in informal settlements.

The DA proposed that council should consider outsourcing this function to private contractors. The proposal was met with antipathy from the ruling party, who stated that outsourcing is not the policy of the ANC.

The maintenance and ongoing improvement of public facilities and open spaces is another area in which Buffalo City is short changing its residents. The degree of infrastructural decay is affecting all segments of our society. The DA has initiated an audit of parks, clinics, cemeteries, libraries, sports facilities and other public amenities to determine their status and needs, and to identify priorities requiring urgent attention and remedy.

Economic Development and Tourism

The abrupt termination of funding for Tourism Buffalo City (TBC) has far-reaching consequences. The DA has requested an urgent Special Council Meeting for the Executive Mayor to present her proposals for filling this void. Tourism is part of the economic lifeblood for the region, and a failure to address this issue will negatively impact on our economy for years to come.

The DA proposes that a properly funded, well-run public-private partnership between the municipality and tourism roleplayers be established as a matter of urgency to promote the region and coordinate conferences, events, sports tourism under one umbrella.

Appointment of Municipal Officials

In stark contrast to most other municipalities, Buffalo City has been decidedly slow in filling critical gaps in its organizational structure. At this point, a large number of senior officials are operating in an “acting” capacity, with no certainty as to their long term prospects. The failure to appoint permanent senior managers has an enormous impact on service delivery. The Democratic Alliance has grave concerns about the delays, and has written to the Speaker and the Mayor to enquire when the posts will be advertised and/or filled. To date, no response has been forthcoming.

In addition, the lack of certainty has resulted in a great deal of fluidity in the organization, and staff members appear to change roles on a daily basis. The municipality has failed to provide all councilors with a proper directory and organizational chart of various departments’ directors and general managers, despite repeated requests. This has seriously hampered enquiries, complaints and suggestions by the public and councillors.

Acting Municipal Manager’s Security Detail

Mr. Andile Fani was deployed to BCMM as the acting municipal manager by the Department of Cooperative Government and Traditional Affairs without a proper performance contract, or clarity as to where the funding for the deployment would be sourced. Mr. Fani’s commendable attitude towards corruption has allegedly resulted in threats being made against him and his family, thereby requiring a sizeable (and costly!) security detail. No threat analysis or other tangible proof of risk has been presented to either the current or previous Council. The DA has written a letter enquiring about the cost of this security detail, without a response to date.

Establishment of Ward Committees

The demarcation of wards and the date of the election were known well in advance. It is therefore completely unacceptable that no provision was made for the establishment of new ward committees immediately after the elections. This means that the city is still without ward committees. Buffalo City Municipality hopes to have these established by the end of October. This has reduced the public’s participation in the governance of our city to that of mere bystanders.

Since the induction of the new council, the DA has been instrumental in influencing the terms of reference for the establishment and operation of ward committees, to ensure fairness, representation and good governance.

Metro Law Enforcement

The establishment of Buffalo City as a metropolitan municipality has not resulted in the amalgamation of City Traffic and Law Enforcement into an integrated entity (e.g. Metropolitan Police). This has resulted in a failure to enforce by-laws and a lack of 24 hour law enforcement/ control. The allocation of resources to this vital function appears to be misdirected and lacks proper planning and forethought.

The Democratic Alliance has previously questioned the mandate of BCM law enforcement, and the efficient use of manpower. More recently, questions have been raised over the purchase of BMWs for traffic and other law enforcement functions, and it appears that style has taken precedence over function and value for money.

Political Friction

Political tension in Ward 10, Egoli, between DA Ward Councillor Irene Brauns and the ANC’s ex-councillor Antonio Carels persists, and the ANC’s failure to intervene and bring its members to order appears to lack political will. Mr. Carels continues to foment tension in this ward. The DA has written various letters to the ANC Whip and the Chief Whip of council without any concrete results or feedback.

Public Participation

The 2011/12 council IDP & Budget road shows were conducted in a very unprofessional manner, as timeframes were extremely tight and, as a result, no real meaningful input was received from the broader public. The DA believes that the role of public participation in government cannot be underestimated, and that strong, vibrant societies are created when government and the people work together in partnership. Independent civil society must be appreciated as they work for best-practice governance, social justice and environmental protection in the City of Buffalo City. The DA will be calling for a comprehensive roll-out plan for public participation prior to the next Budget and IDP process commencing.

Preparedness for Industrial Action

It is clear that the lack of proper planning during the recent strike action rendered the municipality unable to deliver essential services. In particular, the city was awash with refuse, and collections were sporadic. The collection of business refuse was an issue of major concern, and many organizations reported that their refuse was not collected for almost two weeks. Additionally, in King Williamstown, striking workers allegedly shut off water mains leaving much of the town dry. No security personnel were on hand to prevent looting, rioting, sabotage or other actions on the part of striking workers.

The DA will be investigating the city’s contingency plans to ensure that we are better prepared for future strike action. A specific area of concern is the municipality’s failure to engage third party contractors to deliver the services it was unable to provide.

Conduct of Municipal Workers during Recent Strike Action

The trashing of Buffalo City, burning of tyres and general lawlessness of the South African Municipal Workers Union members without any form of accountability is the type of behaviour that hardens attitudes against their demands. Instead of demonstrating why they deserve the increases, SAMWU’s members resort to violence and looting (as evidenced in the City of Cape Town) to pressurize municipalities into surrender.

The Democratic Alliance has, through its national spokesperson on labour issues, Ian Ollis MP, proposed that unions and union leaders be held responsible for any damage, injury and illegal acts proved to have been committed by their members while on strike.

It is time the unions and their members learned that they are employed at the employer’s pleasure. The right to strike does not imply the right to destroy property or intimidate and assault those who do not share their views.

The DA respects the rights of workers, but such respect is a two-way street, and we cannot, under any circumstances, condone the behavior of union officials and striking workers.

In Conclusion

The ANC has become apathetic to the point of paralysis in responding to the needs of the citizens of Buffalo City. Our metro readiness was shambolic, and the situation, three months later, is little better. The Democratic Alliance has repeatedly shown that it has the interests of all the people of Buffalo City at heart, and has demonstrated that it has the capacity to govern better.

In light of the above, we call on the African National Congress in Buffalo City to explain publicly, fully and fairly, how they intend to improve the lives of our people.

Posted by: Kevin Mileham | September 1, 2011

Who’s the Boss?

The local government elections have come and gone, and we are no closer to knowing who actually runs Buffalo City on a day-to-day basis. In terms of the Municipal Systems Act (as amended and gazetted on 5 July 2011), no person may be appointed as an acting municipal manager or act in a position reporting directly to the municipal manager for a period of longer than 3 months. The Buffalo City Council, against the advice of the Democratic Alliance, re-appointed Andile Fani (who has, admittedly, been the best man for the job in recent times!) for a period of up to 6 months at the end of July!

As far as we have been able to determine, no adverts have been placed calling for applicants for either the municipal manager’s position, or for those of his direct reports. This is also contrary the Municipal Systems Act, which requires that these posts be advertised nationally.

Various audits and forensic investigations have raised serious question marks over the heads of a number of the incumbents, and also over the role certain former councillors and members of the mayoral committee played in the administration. If proven,the fallout (both political and legal) could be enormous. At this time, we await the presentation of the final recommendations of the Ernst  & Young forensic investigation into alleged tender irregularities during the term of Dr. Zitha as acting municipal manager.

The DA has been asking since June for a detailed organizational chart of the top management of the municipality. We are advised that we cannot be provided with this because of the “fluidity” of the positions and the lack of permanent appointments. What is particularly concerning, however, is the fact that even the structure of the organization seems to be in a state of flux. One would have anticipated that, as part of its preparation for its new status as a metropolitan municipality, BCM would have a comprehensive plan for staffing and structuring itself. This does not appear to be the case…

The Democratic Alliance has submitted written questions to the Speaker on this issue, for response at the next council meeting. Until then, your guess is as good as mine…

Sir,

The trashing of Buffalo City, burning of tyres and general lawlessness of the South African Municipal Workers Union members without any form of accountability is the type of behaviour that hardens attitudes against their demands. Instead of demonstrating why they deserve the increases, SAMWU’s members resort to violence and looting (as evidenced in the City of Cape Town) to pressurize municipalities into surrender. The Democratic Alliance has, through its national spokesperson on labour issues, Ian Ollis MP, proposed that unions and union leaders be held responsible for any damage, injury and illegal acts proved to have been committed by their members while on strike.

But the problem is deeper than this. Every local municipality in South Africa forms part of SALGA, the South African Local Government Association, who act as the employer body in collective bargaining with the union. What that means, is that SALGA negotiates a single wage agreement on behalf of every municipality regardless of the affordability thereof. This inflationary pressure forces poorer municipalities to implement higher rates and tariffs, simply to meet the demands of an increasingly unproductive workforce.

It is time the unions and their members learned that they are employed at the employer’s pleasure. The right to strike does not imply the right to destroy property or intimidate and assault those who do not share their views. The DA respects the rights of workers, but such respect is a two-way street, and we cannot, under any circumstances, condone the behaviour of union officials and striking workers.

Cllr. Kevin Mileham

DA Chief Whip

Buffalo City

Posted by: Kevin Mileham | February 17, 2011

Race war? Not if I can help it!

I’ve been shocked and disappointed over the past few days to observe my fellow citizens devolve to racial stereotyping and unpleasant epithets  about each other. I’m not limiting this comment to any particular racial group either: I’ve heard black persons speak about driving the white cockroaches into the sea or chopping them up with pangas, and whites refer to the murdering baboons they live amongst and threatening to reach for their guns.

The really sad part about this is that these people regard each other as radical extremists, but don’t see this failing in themselves, and don’t consider that the vast majority of the population are decent, law-abiding citizens who actively seek a positive outcome for their country. Let me make it very clear: we need to put aside our differences, and work towards a future where our country is prosperous, where all our people live in a land of peace and opportunity, unless we want the bloodshed and hatred, the rape and plunder to continue.

We need to hold our elected representatives to account, and where they fail, vote them out of office. We need to educate and uplift each other – only in this way, will our country grow strong and healthy.

 

Madam Speaker, Honourable Mayor, Fellow Councillors, Citizens of Ndlambe,

It is with great sadness that we find ourselves a year down the line, and a year deeper in trouble. At last year’s budget vote, the Democratic Alliance highlighted the problem areas in the proposed budget, and yet, many of the same issues arise in this year’s document. There can be no doubt that Ndlambe municipality is on the verge of bankruptcy. The Oversight Report on the Annual Report presented to Council at the end of March painted a damning picture of municipal mismanagement, confirming exactly what the Democratic Alliance has been warning of for the past 4 years: a rapidly deteriorating financial crisis which the ANC leadership repeatedly denies exists.

Madam Speaker, during the budget votes last year and the year before that, I noted that the initial budget to be tabled in Council 90 days prior to the start of the new financial year should be substantially compliant with all requirements of the MFMA, and should be a realistic budget, capable of being seriously considered by Council for adoption at that point. In fact, regulation 14(1)b of General Notice 393 echoes this almost word for word. The draft budget tabled on at the end of March, failed substantially in this regard, in that it proposed a deficit of some R8 million.

On a similar note, last year I highlighted the shortcomings of the municipality in terms of legislative and regulatory compliance. This year, we have done little better. Specific issues of concern include:

  • The absence of a funding and reserves policy, as required by regulation 8 of General Notice 393 of 2009.
  • The failure of the municipality to ensure that all funds are fully cash backed, as required by regulation 12(1) of General Notice 393 of 2009.
  • The failure of the municipality to prepare and report on the SDBIP, as required by s53 of the MFMA.

I am aware that the Director: Finance has undertaken to ensure that these issues are rectified during the forthcoming financial year. Frankly, Madam Speaker, I am appalled that they have not been rectified as part of this year’s budget process!

In the 2008/2009 budget, the rates increase was 12%. In 2009/2010, it was 11%. Admittedly, these increases were based on the old property valuations, but the revised valuations (despite a drop in the rate in the rand year on year) have resulted in an effective 38% cumulative increase in the amount residents actually pay in cold, hard cash, over a period of just 3 years! That means that, in just 3 years, the cost of living in Ndlambe (excluding service charge increases) under the ANC’s mismanagement has risen by 38%!

And what services do our residents and ratepayers receive for this? Sewerage flowing into our once pristine rivers; roads that are a danger to vehicles, drivers and pedestrians; refuse that isn’t collected and water that is undrinkable – amongst the worst in the country according to the Blue Drop report – when we have water at all! We have uncooperative staff, who appear to do very little for the fat salaries that they earn, and when we ask that they be disciplined, nothing is done, because “it is an internal matter”.

How much longer, Madam Speaker, can the ANC expect the goose that lays the golden egg to continue doing so, without that goose at least receiving some scraps from the table? How much longer can ratepayers be expected to continue forking out for lavish stays at the R13000 per night Sandton Sun, before they cry “Enough!” and move elsewhere? How much longer can the retired person, living on a fixed income, continue to pay the increases I have indicated? How much longer before the struggling businesses in Campbell Street pack up and relocate to a more conducive business environment, where costs are contained and services delivered?

Last year, the DA rejected the budget, and yet the ruling party saw fit to pass it. As an aside, Madam Speaker, I have to ask: “When is the “ruling” party planning on learning how to govern?” Leaders are servants, not rulers. Whatever happened to “the people shall govern”? Kings are rulers, dictators are rulers. Elected representatives and officials in the state apparatus in a democratic state are public servants, not rulers.

Turning to the budget in detail, Madam Speaker, a number of serious concerns have been identified. Some are noted in the budget document (page 19), through the process of public participation. Sadly, however, the concerns and criticisms noted therein have NOT been addressed.

The first point I must note is that although we spent a day workshopping the budget with the municipal officials – and I am very pleased to report that through the detailed analysis the Democratic Alliance provided, we managed to shave R 3.68 million off the expenditure – I still only received my final budget yesterday. Madam Speaker, that is insufficient time for anyone to properly review the material.

Secondly, we acknowledge that we have, at last, received the organograms depicting the organizational structure we have been requesting for some time. These do not, however, meet our requirements for budgetary purposes. We need to be able to clearly identify the positions that are vacant, and also those new positions proposed. We need to interrogate the cost implications of each and every position. This will enable Council to apply its mind as to the necessity of the positions.

Madam Speaker, we are in dire financial straits. According to table A1, the Employee Costs of the municipality have leapt from R59 million to R67 million – an increase of R8 million or 14.2%! The only reasons that our salaries bill comes in at 32.2% of the total operating budget, is the inclusion of the grant income and expenditure, and the exclusion of councillor allowances. Otherwise, it would be much higher! Madam Speaker, the time has come for the municipality to review its hiring practices, staff structures and operational practices and to determine whether it could be better served by entering into public-private partnerships with service providers to deliver the services we seem unable to do ourselves. A good starting point in this regard might be refuse collection. The City of Johannesburg has for a number of years utilized the services of Pikitup – a successful PPP – to render all of its refuse collection, waste management and street cleaning needs, and this model could easily be replicated locally.

There is a very valid and reasonable concern that Ndlambe’s senior officials and councillors are out of touch with the working class. One only has to look at the salaries and wages the S57 employees and the councillors are taking home to see this. Madam Speaker, one cannot contradict the fact that our directors are earning double the salaries of the next level post. This is an untenable situation! We question whether the citizens of Ndlambe are getting value for money from these overpaid and underperforming tenderpreneurs. Madam Speaker, the Democratic Alliance proposes that an across the board decrease of 10% be applied to the gross salaries of S57 employees and councillors, and that no increase be applied at the next salary determination. We further propose that no performance bonuses be awarded for this financial year.

Contrary to legislation, municipal by-laws and national treasury regulations, there is evidence that certain officials and their immediate families have participated by way of shareholdings and interests in companies and /or organisations supplying goods and services to the municipality. We are aware that a forensic audit, compiled by Price Waterhouse Coopers, covering many of these issues is already in the public domain, and, allegedly, it damns senior staff, councillors and municipal systems. We question when this document is going to be presented to Council?

Revenue collection remains a major problem, and has for the past nine years. Despite promises of action and solutions, year after year the problem persists. In fact, our problem has grown: National and Provincial Departments are consistently in arrears – at last check to the amount of some R2 million. Normal debtors – the residents and businesses of Ndlambe, on whom the municipality relies – stand at some R84 million, with over the majority being outstanding for over 30 days. Unless and until we regularly collect the full amount owed to us on a monthly basis, we are going backwards.

The problem is exacerbated by the fact that the mayor fails in his legally obligated duties to submit quarterly financial reports to the Council on the implementation of the budget and the financial state of affairs of the municipality. This is something I have personally requested on no fewer than 6 occasions in Council. Madam Speaker, I am tired of excuses. The citizens of Ndlambe are tired of excuses. When will the mayor report?

Although I could continue ad nauseam, I want to highlight one final item. It has come to our attention that senior officials of this municipality are abusing the municipal Travel and Subsistence Policy. This is in direct contravention of both Council resolution and an undertaking by the mayor that the municipality would be cutting back on extravagant expenditure. Madam Speaker, I refer specifically to Ms. Mali’s overnight stay at the Sandton Sun at a cost of some R13 000. How much longer are the ANC going to protect this woman? Madam Speaker, the Democratic Alliance proposes that an immediate moratorium on all travel and subsistence to workshops and conferences be put in place for the foreseeable future. We cannot continue jetsetting our way around the country, while Ndlambe suffers at home.

We must start cutting our coat according to our cloth. We propose that the budget starting point should not be expense-based, but rather revenue-based. In other words, determine how much income the municipality has available, and prioritise expenditure accordingly, rather than trying to increase revenue to make up for projected over expenditures. We submit that an increase of 7.5% would be far more acceptable than the 13% currently mooted, and that this would make a reasonable starting point from which an expenditure budget could be developed.

In conclusion, Madam Speaker, let me state categorically that the Democratic Alliance rejects this budget, not for the sake of being contrary, but for the good of all the people of Ndlambe.

The Democratic Alliance therefore proposes, as a substantive motion, the following:

  1. That the organogram provided be updated to show filled posts, vacant budgeted posts, vacant unbudgeted posts, proposed new posts and the total cost to company of each post
  2. That Council urgently consider the organogram to determine the necessity of these posts and whether retrenchment is an option.
  3. That the filling of all vacant posts be frozen for the forthcoming financial year, and that no new posts be created for and during the same time frame.
  4. The Price Waterhouse Coopers forensic audit be presented at a Special Council Meeting for consideration and action.
  5. That S57 employee salaries and executive committee allowances be cut by 10% of the gross cost to the municipality, and the allowances of ordinary councillors be cut by 5% of the gross cost to the municipality.
  6. That no performance bonuses be awarded this year.
  7. That the mayor provide a written explanation to Council, copied to the MEC for Local Government and Traditional Affairs and the National Treasury, as to why he has repeatedly failed to submit quarterly financial reports to Council as required by S52(d) of the MFMA despite repeated requests for this information from the DA.
  8. That all travel and subsistence to workshops and conferences be suspended for the forthcoming financial year.
  9. That SALGA be approached to differentiate between metro municipalities and other local municipalities when handling salary negotiations with municipal unions.
  10. That the rates increase be limited to no more than 7.5%, and that the budgeted expenditure be amended accordingly.
Posted by: Kevin Mileham | May 28, 2010

ANC rocked in crucial by-elections

By AZIZ HARTLEY, JASON WARNER, ANEEZ SALIE and QUNTON MTYALA

IN a watershed night in South African politics, the DA trounced the ANC in two of its strongholds – Gugulethu and Caledon – gaining two wards where there was not a single white voter and the majority were blacks, not coloureds.

In Ward 44 in parts of Gugulethu and Heideveld, where the DA received 21.6 percent of the vote in the last election in 2006, the party received 60.5 last night.

And in Ward 12 in Caledon’s Theewaterskloof municipality, where the DA received only 6.6 percent in 2006, the party garnered more than 60 percent. Ward 44′s previous incumbent, Nombulelo Ntoko, was shot dead by her boyfriend on April 8.

In Theewaterskloof’s Ward 12, the ANC councillor was removed for breaching the Councillors’ Code of Conduct by missing five successive council meetings without excuses or reasons.

ANC provincial co-ordinator, Duma Ndleleni, congratulated the DA on its victory and said his party had been confident of retaining the ward.

“Yes, it belonged to us. I think our campaigning was wrong. We did not work sufficient work in the ward,” he said.

The DA proportional representative and mayoral committee member for housing, Shehaam Sims, who defeated ANC candidate Zubeka Mnotoza in Gulugethu, said her victory meant hard work for the DA.

“We need to go into Gugulethu and show what the DA can do,” an ecstatic Sims said shortly after results became known last night.

DA leader Helen Zille said: “This result has gone way beyond our expectations. From the previous election of 21.6 percent to 60.5 percent is a massive difference. We’ve trippled our Gugulethu voters.

“We are growing and that is the most important thing. We are growing in all communities. People say the DA is a white party. In this ward, there is not a single white voter.”

Zille said that, while the Ward 44 win was spectacular, more spectacular was the DA’s demolition of the ANC in yesterday’s Ward 12 by-election in Theewaterskloof.

Here the DA’s candidate, Catherine Booysen, beat the ANC’s Nokwana Roro in a ward that was the ANC’s strongest in the Overberg.

Zille said that in 2006 the DA received 26.1 percent of the vote and the ANC 71 percent. Yesterday, the DA received about 60 percent in an area where the majority of the population was black.

Booysen, a former ANC and later a Cope member, joined the DA in October.

“There was so much corruption and chommie chommie (buddy buddy) in the ANC. I decided that was not for me or where I want to be politically. I was with Cope for a year, but it was very frustrating. I could see Cope’s failure coming.”

“They were not that different from the ANC. In the DA, I’ve found there is teamwork and a support system. The networking is excellent and everything is well organised. There is respect for colleagues and party leaders.”

A community worker, Booysen studied nursing at UWC and in 2008 founded a substance abuse project to help the young in her community. She is now working on a project against domestic violence.

Zille said: “The DA continues to grow across South Africa, with more and more South Africans turning out to vote DA for the first time. In contrast, the ANC continues on its path of steady decline.”

The Independent Electoral Commission is expected to verify the results today.

In Heideveld, ANC supporters arrived just before polling closed. For a few tense minutes, ANC supporters toyi-toyied in one lane of the road and DA supporters in the other. Earlier, DA members served a dish of akni to voters as they arrived which was only about 7pm. “We waited for 7de Laan to finish.”

Courtesy of www.iol.co.za

Posted by: Kevin Mileham | May 26, 2010

Clowns to the Left of me, Jokers to the Right…

Last night I watched several television programmes that made me wonder about this crazy country we live in.

Image courtesy of iol.co.za

The first was the E-TV  7pm news, where images of the ANCYL dominated the headlines, as usual for all the wrong reasons. This time, it was to do with the toilets of Khayalitsha. Yes, THOSE toilets. The ANCYL first complained in November 2009 that the DA was racist in providing toilets without walls (despite that being what the community had agreed to) and then, when the DA-led City of Cape Town attempted to rectify this problem by providing prefabricated toilet structures, promptly destroyed them, saying only concrete structures were acceptable to the community. The residents whose toilets were being enclosed didn’t agree – and had not even been consulted by the ANCYL – it was simply a case of the majority opinion of a bunch of thugs that this was unacceptable behaviour on the part of the city.

The second programme was SABC3′s Special Assignment, which took a look at the state of the right wing of South African politics, following the death of AWB leader Eugene Terreblanche. Apparently, the AWB and Suidlanders (an extreme right wing organisation that preaches the teachings of Siener van Rensburg – that a “Night of the Long Knives” genocide is imminent for white South Africans) are receiving a massive influx of recruits.

The last programme was ETV’s 3rd Degree, which looked at racism from a white perspective (in particular, at the funeral of Eugene Terreblanche, and on the campus of the University of the Free State).

What was particularly worrying about all the attention given to these Left and Right wing radicals (and, yes, racists) is that no-one in the media was paying any attention to the middle of the road, common sense approach. I realise that extremism is newsworthy, but surely someone can see the value in promoting good governance, sound policies and a higher standard of public morality. I’m not talking about puritanism here, just basic respect for each other, for property and for procedure.

A while ago, students at Naphakade Secondary School near Malmesbury burned down 3 prefabricated classrooms in protest … over lack of classrooms. The destruction of the toilets yesterday is just more of the mindless violence and vandalism that seems to run roughshod over common sense. In the 3rd Degree programme, a black cameraman was punched in the face simply for being in the vicinity of right wing AWB members. Has South Africa lost its collective mind (assuming, of course, it ever had one)?

Now, more than ever, we must reconnect with the spirit of Madiba and Tutu in the mid 1990s, we must rekindle the hope of the Rainbow Nation. We need to embrace ubuntu and reject those who would drag us back in to barbarism. For, make no mistake, the barbarians are clawing at the gates, from the Left and the Right.

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