Emfuleni Municipality The Tipping Point Financial Recovery Plan Implementation Business Sector Briefing Meeting Lead Administrator: Gilberto ...
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Emfuleni Municipality The Tipping Point
Financial Recovery Plan Implementation
Business Sector Briefing
Meeting
Date 19 January 2021 Lead Administrator: Gilberto Martins
▪ “It is extremely disheartening to realise that the lives of the people of the area are
being affected negatively as a result of lack of both political will and
administrative inclination to serve the people of the area. The situation requires a
re-imagined approach to reverse the effects years of an ineffective
municipality,” said Ms Faith Muthambi, the Chairperson of the committee.
▪ Ms Faith Muthambi, the Chairperson of the Committee (Cogta) - Parliament, Friday, 16 October 2020
2
TABLE OF CONTENTS
● Why are we here?
● Operating Framework
● Emfuleni - It’s Citizens
● The Administrators Team Members
● The Tipping Point - The 3 Laws
● This Intervention - What it is NOT !
● This Intervention - What it is !
● The Tipping Point - Emfuleni Framework
● The “tool” to fix the challenges
● The target
● Discussions
3
TABLE OF CONTENTS 4
The playing field ! Understanding the Complexities - ● There are 45 functional Ward Committees in the Municipality. ● Ward Committees have been established to encourage participation by the community and to inform Council decisions. ● These committees seek to foster effective communication between Council and the community. ● The Municipal Council comprises 90 councilors, 45 of which are Ward Councilors and 45 are Proportional Representatives (PR) Councilors. ● The Councilors at Emfuleni participate in decision making 5 and represent the local constituencies in Council. 5
Why are we here ?
South Africa Constitution (1996)
(S139) Provincial intervention in local government :
(1) When a municipality cannot or does not fulfil an executive obligation in terms of the
Constitution or legislation , the relevant provincial executive may intervene by taking any
appropriate steps to ensure fulfilment of that obligation, including:
a)Issuing a directive to the Municipality Council , describing the extent of the failure to fulfil
its obligations and stating any steps required to meet its obligation
b)Assuming responsibility for the relevant obligation in that municipality to the
extent necessary to –
i.Maintain essential national standards or meet established minimum standards for
the rendering of a service;
ii.Prevent that Municipal Council from taking unreasonable action that is prejudicial
to the interests of another municipality or to the province as a whole; or
iii.Maintain economic unity
c)Dissolving the Municipal Council and appointing an administrator until a newly elected
Municipal Council has been declared elected, if exceptional circumstance warrant such
step. 6
Operating Framework
Local Government Municipal Finance Management Act & Regulations
Key - Example
⚫ Section 142 to 146 (Financial Recovery Plan)
Local Government Municipal Systems Act & Regulations
Key- Example
⚫ Section 67 - Human Resource Development
⚫ Section 106 Non Performance and Maladministration
Other operational legislation
⚫ BBBEE
⚫ SCM
⚫ Unsolicited Proposal Management
7 7EMFULENI
- It’s Citizens
61 % of the Population is made up of young persons under the age of 35 years.
Less than 10 % of the residents have a post matric qualification and only 40 %
are employed.
Source: Stats SA Community Survey 2016
8Where are we
Non delivery of
mandate -
Service
deleivery
negative impact
9 9Expectations - A better life! 10 10
The Administration Team ■ The Administrators Team : Section 139 (1) (b) Three Focus Areas ■ Lead Administrator ○ Mr Gilberto Martins ■ Financial Management ○ Mr Kgaugelo Mahlaba ○ Ms Rianda Kruger ■ Supply Chain Management ○ Ms Atirilo Hlongwane ○ Mr Lesedi Mere ■ Service Delivery 11 ○ Mr Silas Zimu
Observing the past to prepare for the future!
• Malicious compliance
• No consequent management – internal and external service
providers
• Limited Human capacity and skills
• Non functional Project Management Unit - Project current status
,Under expenditure
• Contract management not adequate (note not contactor
performance)
• No “Just in time information”, no integrated reporting
methodology
• IDP become irrelevant for service delivery
• No consequent for cancellation / removing projects or criteria
for implement
• No report action? IDP feedback to communities, Monthly project
reports
• No project progress integration to financial payment review
12• Types of construction contract used ? Effective management 12
?2020/21 Budget
Operational Budget
Due to low collections during the COVID-19 period, the
collection rate was adjusted downward to 71.82% from
75.49% of the budget approved on 30 June 2020;
A consumer qualifying for indigent support must receive
the subsidies as determined annually during the
preparation of the municipality's budget.
13The Tipping Point
A three laws “point plan”
The Law of the Few
A focus on basic service delivery to citizens ,hinged on
reputational management and effective
communication.
The Law of the Stickiness Factor
A focus on leveraging stakeholder management
process / business continuity, to enhance service
delivery.
The Law of the Power of Context
A strategy that addresses the immediate (FRP) to
short term (sustainable management)This Intervention - What it is not!
● A quick fix solution;
● Strategic turnaround theories
● Shotgun intervention promise and programs;
● A talk shop of impossibile delivery targets - Empty
promises;
● The silver bullet to every problem;
● A forever time frame for results;
● A endless budget delivery framework;
● An individual plan - Lead Administrators;
● A government go it alone implementation FRP;
15This Intervention - What it is! ● A prioritised key focus areas approach - ● Leading sectors that will result in a positive impact on the citizens of Emfuleni; ● Practical immediate implementation solution; ● A cash budget management system ● Reputational damage re dress ● Confidence builder to Emfuleni citizens ● A collective responsibility - Collective ownership ● A committed administrators team ● A performance management official approach 16
The Tipping Point - The Framework
● Dealing with an “epidemic”
● Fix the broken window pane “concept”
● IMPACT OBJECTIVE - Small enough to
be done immediately, (within current
constraints ) Small enough for change to
be seen,(on the ground intervention ) Big
enough for the Citizens to feel the change,
(Impact - Better life) Reputational damage
addressed (Mandate delivery in place)
17The Tipping Point -
Fix the broken Window Pane
The Epidemic Three Key Focus Areas
The Window Frame (1)Financial Management (2)Supply Chain (3)Service Delivery
Management
The Window Panes Creditors - Weekly Procurement Plan - Grant and
Payments (Cash Budget) Forward projection / IDP Subsidized 100%
expenditure
Debtors collection Committee effectiveness Sewerage
(Specification, Evaluation, Main outfall sewer
“ How little things Adjudication) Refuse Collection /
Illegal Dumping
can make a big Cost Containment Contract Management Roads / Potholes
difference” Water / Electricity
Malcom Gladwell Revenue Generation Unsolicited proposals Capital Project
Enhancement Management
Auditor General Findings Ward operational
model
Call Centre Implementation Catalytic
Investment Prj
182020/21 Budget
Operational Budget
★ WARD BASED - Interconnected intervention programs roll out for all
required intervention both service delivery, revenue collection and other
ELM functionalities;
★ Workstream operational methodology to include all stakeholder,
monitoring and progress reporting through administrators (not by
administrators), for Council reporting and feedback by councillor to
respective Wards and part of ELM Communication Strategy;
★ Ongoing corrective action implemented in response to findings.
(Reports)
192020/21 Approved Budget
A special adjustments budget was approved by Council on 14 October 2020.
202020/21 Budget
Grants & Subsidies
212020/21 Budget
Capital Budget
22PRIORITY CATALYTIC
PROJECTS/INVESTMENTS
1 2 3 4 5 6 7
The Vaal AB-Inbev Premier Agri- Maritime Proposed Integrate
River Investme Foods: Industriali Industrial d Skills
City- The nt Project Snow zation Hubs in Develop
Vaal 21 Isanti Flake (Agri Sebokeng ment
Game and Parks) & Partners
changer Project Vanderbijl hip
Jordan park Project
23Underspending = Failed Delivery
Resulting from POOR Planning
24Administrators Target
100%
90%
Focus
80%
Interventio
70% n Area
60%
Mandate
% 50%
40%
30%
20%
10%
Year Low 2016/2017 2017/2018
Impact on2018/2019
Communities 2019/2020 High 2020/2021
Community Beneficiaries
25 25Service Delivery is not a
perfect science !
26 2627 27
Thank You
“one machine can do the work of fifty ordinary men OR
women. No machine can do the work of one
Extraordinary man OR women.”
Thomas Edison
CONTACT DETAILS : GILBERTO MARTINS
E MAIL: gilbertomartins928@gmail.com
Cell: 082 902 9977
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