ALFRED NZO
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
6
7
7
7
7
8
8
8
8
9
9
9
9
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10
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EXECUTIVE SUMMARY
Alfred Nzo District Municipality is the poorest district in the Eastern Cape, with high
levels of poverty and unemployment. The district is predominantly rural with subsistence
agriculture and a lack of infrastructure. There are two local municipalities within the
district, Matatiele and Umzimvubu. The district has the second lowest access to
infrastructure in the Eastern Cape, with levels of 14% in 1996 which improved to 42% in
2008. This was mainly driven by an increase in access to electricity, a function that is
not performed by the District Municipality. There are still low levels of access to clean
water and hygienic toilets.
The audit opinions for the District Municipality remain poor, although the local
municipalities have improved over time. The State of Local Government Assessment
found poor governance and a dysfunctional municipal structure in the district. The
district was not performing well in terms of financial management, while service delivery
was also viewed as poor. Two important service delivery challenges identified were the
need to replace old infrastructure and the lack of capacity in the District which leads to
failure in implementation of water and sanitation projects.
In terms of its Municipal Turn-Around Strategy the District identified access to water as
its infrastructure priority, with the need to appoint skilled personnel to perform the
function.
Both the local municipalities in the Alfred Nzo District have been classified as 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 Alfred Nzo District should focus
on access to clean water, that the appropriate skills should be in place to ensure project
execution and that there should be an alignment between MTAS priorities and
infrastructure projects.
3
1.
INTRODUCTION
1.1
Overview1
Alfred Nzo District Municipality borders on Lesotho in the north of the Eastern Cape and
includes the local municipalities of Matatiele and Umzimvubu. It consists of a high
plateau extending up to the Drakensberg, with a central plateau to the south. Rainfall
deceases away from the mountains.
The district is the poorest in the Eastern Cape and is characterised by unemployment
and a lack of employment opportunities; low income levels; low education levels (55%
are considered literate); low business growth with poor markets for local products; and
problems in accessing finance by small businesses.
The district is predominantly rural and most agriculture is at subsistence level.
Agricultural input costs are high and land claims are affecting development. There is
nevertheless potential to develop the local economy through agriculture (cattle, goats,
sheep; crops such as sorghum, maize, lucerne, vegetables, tropical fruit and nuts,
pineapples and chicory), tourism (arts and crafts, scenery, wildlife, wetlands and cultural
heritage), fishing (in the dams and rivers) and forestry. There is a need to provide
technical support to local agricultural initiatives.
The economy is declining, in part because the lack of infrastructure deters potential
investors. The main contributors to the district GDP are the public sector (education,
health and public services) at 68% and agriculture and forestry at 11%. Many
households are dependent on state pensions.
Many residents are employed in the informal sector, often in the trading of fruit and
vegetables. Others run small scale informal businesses such as beauty salons and
spaza shops. These people lack financial support and training. Most households in the
district own livestock, and many have arable land. All these activities generate some
wealth and income which is not included in official statistics.
The current migration of people to urban areas has resulted in informal settlements on
vacant land in and around towns. In some cases invasion of prime land has also
occurred. This is placing pressure on urban infrastructure. Over half the inhabitants are
supplied with water to RDP standards: 45% rely on public stand pipes and 42% rely on
undeveloped natural sources. Only 15% of the population has RDP standard sanitation.
Infant mortality is high, with diarrhea one of the main causes of death. This is
exacerbated by backlogs in the provision of service infrastructure and inadequate social
infrastructure: lack of water and poor sanitation result in poor hygiene.
The condition of gravel roads in the district is improving. Land ownership has long been
a problem in the provision of housing. Environmental problems include soil erosion and
Source: Gaffney’s, November 2009: Local Government in South Africa 2009 – 2011, Official Yearbook:
p 471 – 473.
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4
extreme climatic conditions which in summer can cause floods, violent thunderstorms,
hailstorms and tornadoes; and in winter, snowfalls.
The district is relatively well endowed with indigenous forests. Some medicinal plant
collection takes place, mainly by local people with a thorough knowledge of the area.
Bird life is abundant in the forests, and also in the mist belt of Umzimkulu. Indigenous
forests are threatened by adjacent forest plantations whose operations often destroy the
undergrowth. There are wetlands in the Ntsikeni and Ongeluksnek areas. The wetlands
in Ntsikeni are in a protected area, and in a good condition.
Heritage sites are largely undocumented, and consist mainly of rock art and historical
buildings. No declared sites exist, but many buildings in Mt Ayliff and Umzimkulu qualify
to be heritage sites. Rock art sites have automatic heritage status, but none is actively
protected or conserved.
1.2
Municipalities within the Alfred Nzo District
The details of the two local municipalities within the District are tabled below:
Table 1: Statistics of the Alfred Nzo District and Local Municipalities
Municipalities
within the District
Alfred Nzo
District
municipality
Matatiele Local
Municipality
Umzimvubu
Local
Municipality
1.3
Area
(km2)
in 2009
Area (km2) after
Population No. of
Poverty
2011
House
Rate
Local Govt
holds
Elections
& % change
6,858.78 6,929.54 1.03%
468,423
99,674 86.52%
4,352.31 4,352.31
2,506.47 2,577.23
2.82%
252,842
52,966
97.79%
215,580
46,708
75.25%
Political and Administrative Leadership and Seat of District2
Political Leadership: Executive Mayor: Ms EN Diko
Administrative Leadership: Municipal Manager: Mr M Moyo
The head office of the District is located in Mount Ayliff.
2
Source: Alfred Nzo DM; August 2011
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1.4
Political representation3
Table 2: Local Government Election 2006 / Provincial and National Elections 2009
comparison:
Leading
Parties in
the
Elections
1st
Local Government Elections 2006
Party
Party Votes and
Ward Votes and %
%
ANC
76,914
82.2%
77,126
83.0%
ANC
23
92.0%
2nd
UDM
DA
PAC
Other
4,265
847
536
11,049
93,611
4.6%
0.9%
0.6%
11.8%
100%
3,792
851
724
10,453
92,946
4.1%
0.9%
0.8%
11.2%
100%
UDM
2
8.0%
25
100%
3rd
4th
Totals
Councillor Seats
Party
Seats
Provincial Elections 2009
Party
Votes and %
National Elections 2009
Party
Votes and %
ANC
100,035
82.7%
ANC
106,485
COPE
UDM
DA
Other
9,361
4,054
1,594
5,922
120,966
7.7%
3.4%
1.3%
4.9%
100%
COPE
UDM
DA
Other
9,306
4,104
1,221
3,315
124,431
%
OTHER
Figure 1: 2011 Local Government Election results and seat allocations:
The ANC is the leading party in terms of proportional DC40 Seats in Alfred Nzo, with 13
of 16 seats.
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UPDATE Aug’09: DC40 seats - ANC(90%) 9 seats, UDM(10%) 1 seat, Total 10 DC40 seats
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85.6
%
7.5%
3.3%
1.0%
2.7%
100
%
2.
SERVICE DELIVERY4
2.1
Alfred Nzo District Municipality Household Infrastructure
Household Infrastructure Overview
EC - DC44 Alfred Nzo District Municipality
0.90
0.80
0.70
0.60
Index
0.50
0.40
0.30
EC - DC44…
0.20
0.10
0.00
1996199719981999200020012002200320042005200620072008
Source: IHS Global Insight Regional eXplorer version
Alfred Nzo has the second 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 14% in 1996 to 42% in 2008. 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 has gone up from 11% in 1996 to 31% in 2001. 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 which was at 23% and pit latrines which was more
than 50% by 2008.
2.3
Water
There are low levels of access to clean water in the district. Access to piped water
above RDP level increased from a low level of only 18% to 40% from 1996 to 2008.
Similarly, there has been an increase as well in access to piped water below RDP level
and about 15% of households are now getting this service. More than half the
households do not have access to clean water.
4
Sources: IHS Global Insight Regional eXplorer version 459; CoGTA, 2009: Basic Services Publication, Comparative
Information on Basic Services, 2009 and Municipal Demarcation Board, 2008: National Report on Local
Government Capacity, District and Local Municipalities, MDB Capacity Assessment, 2007/2008.
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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 low level of
7%. Access has, however, increased over the years reaching 54% by 2008.
2.5
Refuse removal
There has been a slight increase in access to formal refuse removal service from 1996
to 2008 in the Municipality. Access has gone up from 2% in 1996 to 6% in 2008.
Personal refuse removal also went up over the years reaching 90% in 2008. The
increase in personal removal increased the number of households without this service.
2.6
Service provider
Alfred Nzo 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 and is not performing the refuse
removal, refuse dumps and solid waste disposal function.
3.
AUDIT OPINIONS
Table 3: Audit Opinions of the District and Local Municipalities
Municipality
Alfred Nzo DM
Audit
Opinion
2005/6
Disclaimer
Audit
Opinion
2006/7
Adverse
Matatiele LM
Disclaimer
Qualification
Audit
Opinion
2007/8
Disclaimer
Unqualified
(with other
matters)
Umzimvubu LM
Disclaimer
Disclaimer
Disclaimer
Source: Auditor-General 2009 and 2011, see. www.agsa.co.za
Audit
Opinion
2008/9
Adverse
Financially
unqualified
with findings
Adverse
Audit
Opinion
2009/10
Audit not
finalised at
legislated
date
Financially
unqualified
with findings
Qualified
The audit opinions for Matatiele and Umzimvubu local municipalities have shown
improvement over the past five years, especially in the case of Matatiele. In contrast, in
the case of Alfred Nzo district municipality poor audit results is an area that still needs to
be improved.
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4.
State of Local Government Assessments
4.1
Overview of findings on assessment in the municipality
4.1.1 Governance
The Department of Local Government and Traditional Affairs has intervened in terms of
section 139(1) (b) of the Constitution in the Alfred Nzo District Municipality. The State of
Local Government Assessment in the District in 2009 found poor governance and a
completely dysfunctional municipal structure. There was a lack of commitment by
section 57 managers in discharging their responsibilities and functions. There was an
absence of a working culture and a Performance Management System in the
municipality. The council of the municipality was completely dysfunctional, with political
interference in the administrative functions within the district municipality.
4.1.2 Financial Management and Viability
The municipality is not performing well in terms of financial management. The
municipality received a disclaimer in the previous financial year. The reasons for the
disclaimer are gross mismanagement and unaccounted funds, particularly MIG. An
amount of R36 Million for MIG was diverted to pay salaries. Equitable share allocations
in particular have been mismanaged. No performance measure is in place to monitor
the performance of municipal officials and risk management plans are not currently in
place. The municipal internal audit unit only consists of one official. The municipality has
only recently adopted policies on Supply Chain Management, Asset Management, Debt
and Credit Control.
4.1.3 Service Delivery
Service delivery is poor in all competencies of the Alfred Nzo District, namely the
provision of water, sanitation and electricity. The infrastructure is old and needs to be
refurbished and rehabilitated. The cost of doing this is very high and the municipality
lacks sufficient funds in this regard. There is a lack of capacity within the district which
leads to failure in implementation of water and sanitation projects. There is also a lack
of personnel to do the operation and maintenance of infrastructure. DWAF has
complained to the municipality about the water quality within the municipality. A
challenge faced by the municipality is that the dams are dry and there are no trucks to
deliver water to communities.
The municipality has been receiving monies for the indigent, however there is no
indigent register and the funds were not used for the intended purpose. There is no
progress in the provision of RDP houses and those that have been built are of a poor
quality. There is a lack of co-ordination amongst sector departments which has a
negative impact on the provision of services e.g. building of hospitals and schools by
departments without considering the provision of water and electricity. There is also a
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backlog in service delivery caused by a loss of assets and increased liability due to the
re-demarcation of Mzimkhulu into KZN.
5.
INFRASTRUCTURE PRIORITIES IN TERMS OF THE MUNICIPAL TURNAROUND STRATEGY
On infrastructure development and municipal services, the Alfred Nzo District
Municipality has identified access to water as the priority action in terms of its MTAS.
The challenges identified, include:
 Lack of reliable project information(statistics of households)
 Shortage of skilled personnel for Operations and Maintenance and capital
projects.
 Vacancies in the Water Services Provision
The action required by the municipality identified in the MTAS, include:
 Advertising of critical posts and filling of positions
6.
MIG PROJECTS
Table 4: Alfred Nzo District MIG projects
Municipality
Project name
Matatiele LM
Greater Maluti:
Rehabilitation of
Roads and
Stormwater
Phase 1
Maluti Civic
Centre
Malubaluba
Access Road
Moliko Access
Road
Chibini Access
Road & Bridge
Hillside-Manzi
Access Road &
Bridge Phase 2
Nkosana Bridge
Diaho Great
Place Access
Road
Felleng Access
Road
Mahlabathini
Lugada Access
Road , Brigde
Greater
Registered MIG
funds
Total actual
expenditure in the
2010/11 financial
year
Project status
(Registered/design/
tender/constructio
n)
Project category
(e.g. water,
sanitation, PMU)
R 6,951,817.00
R 3,653,625.13
Construction
R 4,176,662.00
R 0.00
Construction
Roads & s/water
Multi purpose
community halls
R 3,375,000.00
R 1,927,124.44
Construction
Roads & s/water
R 2,250,000.00
R 1,590,215.95
Construction
Roads & s/water
R 4,525,000.00
R 2,077,140.88
Construction
Roads & s/water
R 4,110,100.00
R 2,800,000.00
R 0.00
R 0.00
Retention
Retention
Roads & s/water
Roads & s/water
R 3,825,000.00
R 2,691,375.72
Construction
Roads & s/water
R 2,050,000.00
R 551,746.32
Design & Tender
Roads & s/water
R 4,255,001.00
R 6,951,817.00
R 3,451,487.81
R 1,549,132.37
Construction
Design & Tender
Roads & s/water
Roads & s/water
10
Umzimvubu
LM
Matatiele:
Rehabilitation of
Roads and
Stormwater
Phase 1
Greater
Cedarville:
Rehabilitation of
Roads and
Stormwater
Phase 1
Rolweni MultiPurpose Centre
Fubane Access
Road
Ramafole
Access Road
PMU
Establishment
funds
Moqhobi Acces
Road
Rantshiki
Access Road
Khoapa Access
Road
Sehlabeng
Access Road
NgcwenganeEsifolweni
Access Road
BerdivalleMahlehleng
Access Road
Tshita-Mabua
Access Road
Ntlabeni Access
Road & Bridge
Mbuqe Manxiweni
Access Road
PhuthiniSylussville
Access Road
(Phase 2)
Mvuzi - Mtshazi
Access Road
Environment
Consultance
Surfacing of Mt
Frere Streets Phase 1
Surfacing of Mt
Frere Streets Phase 2
Surfacing of Mt
Ayliff Streets Phase 2
Mpola Access
Road
Gubhuzi Access
R 6,951,817.00
R 3,649,161.24
Construction
R 1,510,491.00
R 0.00
Retention
Roads & s/water
Multi purpose
community halls
R 4,275,000.00
R 72,232.16
Retention
Roads & s/water
R 2,700,000.00
R 0.00
Retention
Roads & s/water
R 524,853.22
No status
PMU
R 4,500,000.00
R 1,988,727.49
Design & Tender
Roads & s/water
R 4,500,000.00
R 365,589.62
Design & Tender
Roads & s/water
R 5,550,000.00
R 521,977.50
Design & Tender
Roads & s/water
R 3,750,000.00
R 448,875.00
No status
Roads & s/water
R 4,325,000.00
R 673,866.98
No status
Roads & s/water
R 5,850,000.00
R 351,000.00
No status
Roads & s/water
R 3,750,000.00
R 386,073.74
No status
Roads & s/water
R 5,200,000.00
R 1,137,985.70
Completed
Roads & s/water
R 3,054,345.00
R 566,236.82
Completed
Roads & s/water
R 2,280,355.29
R 1,350,992.63
Completed
Roads & s/water
R 2,838,600.00
R 338,392.03
Completed
Roads & s/water
R 1,196,949.95
R 1,044,168.69
Registered
PMU
R 13,320,000.00
R 13,971,079.75
Construction
Roads & s/water
R 15,823,810.00
R 6,400,403.64
Construction
Roads & s/water
R 15,766,200.00
R 15,619,558.15
Construction
Roads & s/water
R 1,600,000.00
R 1,900,000.00
R 546,640.12
R 309,265.02
Completed
Completed
Roads & s/water
Roads & s/water
11
Road (Phase 1)
Luxwesa Saphukanduku
Access Road &
Bridge
R 4,700,000.00
Source: All MIG projects, 2011 June
R 75,000.01
Completed
Roads & s/water
Matatiele and Umzimvubu local municipalities, both located in Alfred Nzo district
municipality, have reported on their MIG projects. Only five projects – Project
Management Unit Establishment Funds, Sehlabeng Access Road, NgcwenganeEsifolweni Access Road, Berdvalle-Mahlahleng Access Road and Tshita-Mabua Access
Road – in Matatiele have not been reported on in June 2011. As stated in the 2010/11
monthly non-financial report on MIG, Matatiele and Umzimvubu 2011 June reports were
not signed by the accounting officers as required. In both Matatiele and Umzimvubu
most projects are about roads and water. Matatiele has completed most of its projects.
In Umzimvubu some projects have been completed while others are still to be designed
and tendered.
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 two local municipalities in the Alfred Nzo District can be classified as follow:
Table 5: Vulnerability Classification
Local Municipality
Matatiele
Umzimvubu
Classification
Most vulnerable
Most vulnerable
From this table it is evident that both local municipalities in the Alfred Nzo District fall
into the most vulnerable category.
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