O.R. TAMBO
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
6
6
7
7
7
7
8
8
8
8
9
9
9
9
9
10
11
12
EXECUTIVE SUMMARY
O.R. Tambo District Municipality is a predominantly rural district in the Eastern Cape,
with low levels of education and high out-migration by men. The agricultural potential of
the region remains largely untapped, with government as the most important contributor
to the local economy and the biggest employer. There are seven local municipalities
within the district. Most of the existing water and sanitation infrastructure is not
functioning properly and refurbishment and maintenance is a priority.
The district has the lowest access to infrastructure in the Eastern Cape, with levels of
14% in 1996 which improved to 36% in 2008. This was mainly driven by an increase in
access to electricity, a function that is not performed by the District Municipality. More
than half of the population does not have access to potable water, and 35% of
households are without toilets.
The audit opinions for the District Municipality and most of the local municipalities
remain poor, although two local municipalities have achieved financially unqualified
opinions with findings in 2009/10. The State of Local Government Assessment found
governance challenges on section 57 manager level in the district. In terms of service
delivery it was found that several water sources within the district are drying up and this
increases the number of households that lack access to water. Maintenance issues
included water stoppages due to repeated electricity outages and frequent sewerage
leakages.
In terms of its Municipal Turn-Around Strategy the District identified challenges within
the local municipalities which include the need to strengthen technical services, the
improvement of refuse removal functions, the poor IGR relations between the district
and some of the locals, as well as the need to review the allocation of powers and
functions between the District and the locals.
Six of the seven local municipalities in the O.R. Tambo 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 O.R. Tambo District should focus
on access to clean water and sanitation. Operations and maintenance is a critical area
that should be attended to, while the division of powers and functions between the
district and locals, especially in terms of the provision of water and sanitation may
require review.
3
1.
INTRODUCTION
1.1
Overview1
O.R. Tambo District Municipality (ORTDM) lies in the east of the Eastern Cape and
consists of seven local municipalities. O.R. Tambo District is characterised by rolling
hills, broken by rivers, stretching from the mountains in the north to the coast in the
south. The Wild Coast is notable for its marine bio-diversity and has been recognised as
one of the WWF’s global eco-regions.
The N2 runs through the district from Mthatha to Cape Town and Durban. The R61 runs
parallel to the coast, providing access to Buffalo City and Kokstad. Generally, the road
network is in a poor condition. The rail link between Mthatha and East London is to be
upgraded and extended to Langeni to facilitate the export of timber from the region.
Unemployment is high, as are dependency ratios; and many households are dependent
on state pensions.
The O.R. Tambo District is predominantly rural, with most of the population
concentrated in the west, around Mthatha, the main town and administrative centre.
Homesteads are dispersed along ridges and in the valleys on flat land. Migration has
contributed to the growth of Mthatha and the main service centres of Bizana, Lusikisiki
and Port St Johns. Most industrial and commercial activity is located in Mthatha in
Vulindlela and Zamukulungisa. The Walter Sisulu University is situated at Mthatha, and
there is also an FET college. However, educational levels are low, with a high level of
illiteracy.
The largest contributor to the local economy, and the biggest employer, is government
and the provision of community services. Trade, finance and agriculture also make
significant contributions. Transport, mining and construction have been showing some
growth, while manufacturing is stagnating. Only the agriculture and forestry sector has
shown a sustained growth in employment. The Department of Agriculture, Forestry and
Fishery (DAFF) manages most of the indigenous forests. Most commercial forests are
on state owned land. Those managed by Singisi Forests Products are subject to a land
claim. There is some sand mining and quarrying.
Men leave the district in search of work, resulting in female headed households. Almost
half the population is younger than 15, which creates a need for educational facilities
and skills development. More people are finding employment in the informal sector.
The agricultural potential of ORTDM remains largely untapped. Agricultural activity is
predominantly subsistence farming on communal land. There is potential for
commercial-scale, irrigated agricultural projects. The system of communal tenure
presents management challenges.
Source: Gaffney’s, November 2009: Local Government in South Africa 2009 – 2011, Official Yearbook:
p 557 - 561.
1
4
Tourism has been identified as a growth sector. The district is committed to addressing
bottlenecks to tourism development such as branding, infrastructure and institutional
capacity. The Wild Coast also presents opportunities for the local people in marine and
aquaculture. The unspoilt natural beauty along the Wild Coast, as well as the cultural
and historical heritage can all be exploited.
The district realises that land and spatial planning must be improved if the full potential
in forestry and agriculture is to be realised, if housing is to be provided, and if social
cohesion is to be achieved. Critical issues include the resolution of land claims,
improvement in land use planning, ensuring security of land tenure and making land
available for development
Although the rivers carry fresh water down to the sea, over half of the population do not
have access to potable water. Most of the existing water and sanitation infrastructure is
not functioning properly and refurbishment and maintenance is a priority.
1.2
Municipalities within the O. R. Tambo District
The main towns and service centres are Mthatha, Bizana, Lusikisiki and Port St Johns.
The details of the seven local municipalities within the District is tabled below:
Table 1: Statistics of the OR Tambo District and Local Municipalities
Municipalities
within the
District
Area
(km2)
in 2009
OR Tambo
District
Municipality
Ingquza Hill
Local
Municipality
King Sabata
Dalindyebo
Local
Municipality
Mbizana Local
Municipality
Mhlontlo Local
Municipality
Ntabankulu
Local
Municipality
Nyandeni
Local
Municipality
Port St Johns
Local
Municipality
13,491.11
Area (km2) after
2011 Local Govt
Elections & %
change
15,897.18 17.83%
Population
No. of
House
holds
Poverty
Rate
1,819,596
347,932
75.16%
2476.83
2,476.83
-
273,387
47,587
76.99%
3,027.37
3,027.37
-
434,651
91,245
63.83%
2,416.72
2,416.72
-
273,333
47,299
79.75%
2,826.09
2,826.09
-
231,708
48,719
73.39%
1,455.72
1,384.96
-4.86%
138,126
27,292
80.08%
2,474.01
2,474.01
-
307,083
55,550
75.59%
1,291.20
1,291.20
161,308
30,241
76.49%
-
5
1.3
Political and Administrative Leadership and Seat of District2
Political Leadership: Executive Mayor: Mr J D Myolwa
Administrative Leadership: Acting Municipal Manager: Mr TT Nogaga
The head office of the District is located in Mthatha.
1.4
Political representation3
Table 2: Local Government Election 2006 / Provincial & National Elections 2009
comparison:
Leading
Parties in
the
Elections
1st
2nd
3rd
4th
Local Government Elections 2006
Part
Party Votes and %
Ward Votes and %
y
ANC
UDM
IFP
PAC
Othe
r
Totals
335,930
39,328
4,776
4,028
2,227
87.0%
10.2%
1.2%
1.0%
0.6%
318,385
36,778
3,868
3,685
17,850
83,7%
9,7%
1,0%
1,0%
4,7%
386,289
100%
380,566
100%
Councillor Seats
Party
Seats
ANC
UDM
ID
APC
OTHER
Provincial Elections 2009
Party
Votes and %
National Elections 2009
Party
Votes and %
ANC
COPE
UDM
DA
Other
ANC
COPE
UDM
DA
Other
%
51
5
1
1
87.9%
8.6%
1.7%
1.7%
58
100%
395,853
50,336
49,032
2,057
11,357
77.8%
9.9%
9.6%
0.4%
2.2%
508,635
100%
412,540
51,123
47,902
2,551
10,588
78.6%
9.7%
9.1%
0.5%
2.0%
524,704
100%
Figure 1: 2011 Local Government Election results and seat allocations:
The ANC is the leading party in terms of proportional DC40 Seats in OR Tambo, with 20
of 24 seats.
2
Source: OR Tambo DM; August 2011
UPDATE Aug’09: DC40 seats - ANC (88%) 21 seats, UDM (8%) 2 seats, ID (4%) 1 seat, Total 24 DC40
seats.
3
6
2.
SERVICE DELIVERY4
2.1
O.R. Tambo District Municipality Household Infrastructure
Household Infrastructure Overview
EC - DC15 O.R.Tambo District Municipality
Index
0.90
0.80
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.00
EC - DC15…
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Source: IHS Global Insight Regional eXplorer version
O.R Tambo has the 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 36% 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 27% 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 17% by 2008. About 35% of the
households are still without toilets.
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 15% to 29% 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.
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 low level of
9%. Access has, however, increased over the years reaching 48% 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 6% in 1996 to 7% in 2008.
Personal refuse removal also went up over the years from 60% in 1996 to 70% in 2008.
The increase in personal removal increased the number of households without this
service.
2.6
Service provider
O.R. Tambo 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 to do
so.
3.
AUDIT OPINIONS
Table 3: Audit Opinions of the District and Local Municipalities
Municipality
O.R. Tambo
District
KingSabata
Dalindyebo
LM
Mbizana LM
Mhlontlo LM
Ntabankulu
LM
Nyandeni LM
Port St
Johns LM
Qaukeni LM
Audit
Opinion
2005/6
Disclaimer
Audit
Opinion
2006/7
Disclaimer
Audit
Opinion
2007/8
Disclaimer
Audit
Opinion
2008/9
Qualified
Audit
Opinion
2009/10
Qualified
Disclaimer
Disclaimer
Disclaimer
Qualified
Disclaimer
Disclaimer
Disclaimer
Disclaimer
Disclaimer
Disclaimer
Disclaimer
Disclaimer
Disclaimer
Disclaimer
Disclaimer
Disclaimer
Disclaimer
Disclaimer
Disclaimer
Adverse
Disclaimer
Disclaimer
Qualification
Qualified
Approval for
contracting out
obtained on 29
February 2008
Disclaimer
Disclaimer
Qualified
Qualified
Financially
unqualified
with findings
Financially
unqualified
with findings
Disclaimer
Audit
outstanding
Source: Auditor-General 2009 and 2011, see www.agsa.co.za
8
Adverse
Qualified
In 2009/10 only Nyandeni and Port St Johns local municipalities obtained financially
unqualified audit opinions. In Mbizana and Mhlontlo local municipalities from 2005/6 to
2009/10 audit outcomes have not improved beyond disclaimers.
4.
STATE OF LOCAL GOVERNMENT ASSESSMENT
4.1
Overview of findings on assessment in the municipality
4.1.1 Governance
Section 57 managers of this district require training in some areas. Serious challenges
were observed on the areas of people management and in the monitoring of
performance. The district’s communication strategy is not effective thus there are no
proper channels of engaging with communities. The participation of traditional
leadership in municipal council is limited for the reason that the process of promulgating
legislation is not yet completed. The district needs to develop practical tools and
systems to strengthen the area of monitoring and evaluation. The municipality has
realized a need to develop awareness campaigns so as to curb service delivery
protests. Since CDWs exist at Ward level and account at provincial level no
communication or reporting is done at the district level this nonetheless is problematic
as most government programmes fall through in terms of publicity because of this gap.
It is therefore necessary to redefine CDW’s reporting and accountability channels so as
to enhance community participation and awareness of government programmes.
A challenge of staff shortage believed to lead to the missing of targets was observed in
this district however the recruitment process is currently underway to address this
situation. The district requires assistance regarding intergovernmental relations (IGR).
Councillors received training on Project Management, Computer programmes, oversight
role and other developmental programmes. Nevertheless they still need to be exposed
and trained to enhance their oversight capacity.
4.1.2 Financial Management and Viability
The district has for a number of years received qualified audit opinions and disclaimers.
A financial management action plan to turn around institutional finances so as to receive
positive audit opinions is in place. Various strategies such as debt collection strategy,
revenue raising plan, and supply chain management policy are in place. The asset
register still needs to be finalised. As a result of non appearance of some consumers
names on the data base hence not billed, the district missed its target for revenue
collection for financial year 2008/09. Payment of creditors has improved as service
providers now receive their payments within 30 days. An Audit Committee was
established by the district.
4.1.3 Service Delivery
Provision of water is still a challenge in the district however an effort was made by the
municipality to intensify the supply of water through the development of a Rapid
Response Strategy. Several water sources within the district are drying up and this
9
increases the number of households that lack access to water. Sanitation is another
challenge facing the district. Sanitation backlog in this municipality is 262 450 and the
reality is the district will not meet 2010 national target nor the 2014 universal target.
Water stoppages are always experienced and they result from repeated electricity
outages. Frequent sewerage leakages have been experienced and are a consequence
of lack of maintenance.
The district has not fully aligned its IDP with the budget however some improvements
have been realized in this area. Various stakeholders partake in the IDP review process
but most local municipalities do not participate. The level of participation by sector
departments is still a concern as few do participate while other departments send low
ranking officials that would not add value to the process. In an attempt to ensure optimal
participation of sector departments in the IDP review process the provincial Department
of Local Government and Traditional Affairs (DLGTA) in collaboration with OTP and
Provincial Treasury established an IGR Provincial Sector coordination forum.
5.
INFRASTRUCTURE PRIORITIES OF THE MUNICIPAL TURN-AROUND
STRATEGY
The O.R. Tambo District Municipality identified a number of challenges for infrastructure
delivery per municipality in the Municipal Turn-Around Strategy and sessions with local
municipalities.
Table 4: Infrastructure delivery in terms of the MTAS
Mbizana LM
Challenges
Lack of a
waste
management
plan
Shortage of
personnel at
Technical
Services
Roads
infrastructure
Electrification
programme
Refuse
removal
Ntabankulu Ingquza Hill
LM
LM
Uncertainty
about
responsibility
on water
provision
Electrification
programme
needs to be
demarcated
The
municipality
has no
statistics on
how electricity
is distributed
The refuse
removal and
disposal sites
function
needs to be
revised
Landfill sites
are
unlicensed
DWAF,
Province and
the
10
King
Sabata
Dalindyebo
LM
No formal
IGR
structure
between the
Local
Municipality
and the
District
Mhlonto LM
The refuse
removal unit
is
understaffed
The
Municipality is
not satisfied
with the
services being
rendered by
OR Tambo DM
There are
no by-laws
on solid
waste
There is no
good working
relationship
between
Mhlontlo and
OR Tambo
District
Municipality
The powers
and functions
allocated to
OR Tambo
Department of
Environmental
Affairs need
to speed up
the process
should be
reallocated to
Mhlontlo Local
Municipality
Equitable
Share should
shift from using
an equity
formula to take
into account
the real
needs/backlogs
of the
municipality
The
Department of
Local
Government &
Traditional
Affairs and
Department of
Environmental
Affairs prolongs
the
implementation
of projects
An awareness
campaign
regarding the
enforcement
of by-laws is
needed
There is no
updated
indigent
register
6.
MIG PROJECTS
Table 5: MIG projects
Municipality
Project name
Mbizana LM
PMU
Ntshamathe
A/R
Gcinisizwe A/R
Mbabazo A/R
Khananda A/R
Luthulini A/R
Nkantolo A/R
Majazi A/R
Ntinga A/R
Dotye A/R
Mgwede A/R
Nomlacu A/R
Registered MIG
funds
Total expenditure in
the 2010/11 financial
year on MIG funds
Project status
(Registered/desi
gn/tender/const
ruction)
Project
category
(e.g.
water,
sanitation,
PMU)
R 36,778.70
No status
PMU
R 608,427.50
R 3,786,250.00
R 314,525.00
R 308,295.00
R 576,405.00
R 1,260,050.00
R 437,850.00
R 5,130,000.00
R 2,997,655.00
R 5,130,000.00
R 218,925.00
R 554,317.12
R 1,910,155.60
R 228,188.58
R 135,099.69
R 543,728.42
R 1,250,265.15
R 112,611.89
R 4,171,006.68
R 1,651,780.61
R 1,453,294.61
R 208,963.71
Design & Tender
Design & Tender
Design & Tender
Design & Tender
Design & Tender
Design & Tender
Design & Tender
Design & Tender
Design & Tender
Design & Tender
Design & Tender
Ward 11 C/H
R 3,306,250.00
R 1,203,615.27
Design & Tender
Ward 23 C/H
R 3,306,250.00
R 616,276.11
Design & Tender
Roads & s/water
Roads & s/water
Roads & s/water
Roads & s/water
Roads & s/water
Roads & s/water
Roads & s/water
Roads & s/water
Roads & s/water
Roads & s/water
Roads & s/water
Multi purpose
community halls
Multi purpose
community halls
11
Bizana Alphalt
Mpunzi Drift
A/R
Bholorhweni
A/R
Ntamonde A/R
Cabane to
Crestu A/R
Lucwaba A/R
Tsawane A/R
Swana A/R
Sidanga A/R
Didi A/R
Costa to
Khathula
Mahaha A/R
Baleni Phase 2
Ntabankulu
LM
R 1,948,625.00
R 250,374.82
Design & Tender
Roads & s/water
R 2,450,550.04
R 912,058.20
Construction
Roads & s/water
R 1,601,047.58
R 1,675,748.95
R 284,288.88
R 103,910.17
Completed
Completed
Roads & s/water
Roads & s/water
R 720,055.85
R 1,696,072.08
R 2,750,000.00
R 3,088,568.00
R 5,500,920.00
R 3,015,515.00
R 430,992.23
R 987,823.36
R 878,105.47
R 112,807.67
R 1,603,220.53
R 0.00
Design & Tender
Construction
Completed
Completed
Construction
Completed
Roads & s/water
Roads & s/water
Roads & s/water
Roads & s/water
Roads & s/water
Roads & s/water
R 1,247,010.55
R 2,750,000.00
R 500,000.00
R 0.00
R 159,997.36
R 412,898.90
Completed
Construction
Completed
R 1,358,091.53
No status
R 958,928.10
No status
Roads & s/water
Roads & s/water
Roads & s/water
Multi purpose
community halls
Multi purpose
community halls
Meje C. Hall
Mbuthweni
C.H
Clean & Green
Phase 2
R 3,000,000.00
R 962,385.09
registered
Ntabankulu
Streetlighting
R 1,443,000.00
R 763,196.15
registered
Ntabankulu
Streetlighting
R 1,443,000.00
R 763,196.15
registered
R 763,196.15
Construction
Clean & Green
street /
community
lighting
street /
community
lighting
street /
community
lighting
R 871,143.24
Construction
Roads & s/water
Ntabankulu
Streetlighting
R 1,443,000.00
Construction of
Ibisa-Fort
donald Access
Road
R 3,737,785.00
Source: All MIG projects, 2011 June
Both Mbizana and Ntabankulu submitted their June 2011 monthly reports on MIG
projects. These reports have not been signed by the accounting officer as required by
legislation. The three MIG projects – Project Management Unit, Meje C. Hall and
Mbuthweni C. H. – in Mbizana were not reported on in June 2011. In Mbizana most
projects are about roads and water and most of the projects are still to be designed and
tendered. Of the five projects in Ntabankulu three are about street lighting and only one
is about roads and water.
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)
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Class 4: Highest performing (58 local municipalities)
The seven local municipalities in the O.R. Tambo District can be classified as follow:
Table 6: Vulnerability Classification
Local Municipality
Ingquza Hill (
Qaukeni)
King Sabata
Dalindyebo
Mbizana
Mhlonto
Ntabankulu
Nyandeni
Port St Johns
Classification
Most vulnerable
Second most
vulnerable
Most vulnerable
Most vulnerable
Most vulnerable
Most vulnerable
Most vulnerable
From this table it is evident that six of the seven local municipalities in the O.R. Tambo
District fall into the most vulnerable category.
13