Speaker of Council: Madam Nomadlozi Greta Hlongwane, Chief Whip of Council: Cllr. Thembile Nquba, Members of the Mayoral Committee Councillors, The Municipal Manager: Mr. Sam Shabalala and members of the Senior Management Team and officials of the municipality, Members of the community, The business fraternity, Distinguished guests, Our special international guests from Eindhoven, Friends from the media, Ladies and gentlemen

Salutations

The last time on the 7th December 2010 when we met as Council was at a time when we bade each other farewell to be united with friends and families to celebrate the festive season.

It was a sad moment to be separated from each other yet our Maker knew that we shall be re-united as we so do today.

I bring you warm and sincere greetings on behalf of my family, the Mayoral Committee and the senior management team amidst the pouring clouds of our horizon. I wish you a successful new season fraught with prosperity and good health

To our international guests, your partnership with us confirms our commitment to build a world devoid of exploitation and poverty. It confirms South Africa’s commitment towards international peace and solidarity. I wish you a pleasant stay and your work will immensely contribute towards building a better Emfuleni.

Floods

Madam Speaker, it was in that last sitting that we spoke about the blessings of the Rain Queen Modjadji and the devastating consequences thereof.

With damages estimated to be millions of rands, the intervention by the National Department of Public Works to fix potholes and built bridges is a step forward in re-building the massive damage.

This can best be summarized by saying that the Vaal has been devastated to a point where the cost of repair is massive. These rains are an act of nature beyond the control of humankind.

We welcome the commitment by the Provincial Department of Roads and Transport to re-build Boiketlong zone six and zone 13 Sebokeng roads and storm-water network.

We should ensure that our resources are dedicated towards the cutting of grass, fixing of potholes and traffic lights. The Municipal Manager has embarked on a special programme to ensure that these are addressed.

We salute the Rapid Response Team, Metsi-a-Lekoa personnel and our Public Safety Division under the leadership of the Deputy Municipal Manager, Mr. Lucky Kamolane for saving precious human life during the floods.

Our special gratitude to Messrs. Kheswa, Ntombela, Mofomme and Hlubi for spending sleepless nights rescuing our communities from the raging floods. We also thank their families for their selflessness.

I wish to pay special gratitude to the leadership of Nedbank for their contribution towards the flood victims.

We call upon the business fraternity to partner with us as part of a caring community.

We welcome the commitment of the Municipal Infrastructure Grant by the National Treasury for the rehabilitation of Vereeniging as part of the urban renewal centre.

We welcome the call by the African National Congress Lekgotla to strengthen relations between Sedibeng and Emfuleni.

Inter-governmental relations remain an effective weapon for integrated planning and coordinated service delivery.

This is line with vision 2014 as part of our turnaround strategy.

The Development Bank of South Africa’s resource centre is a step towards effective and efficient governance and administration.

This centre is a one stop service for all government departments where information is available.

This information includes service delivery approach, audit, policies, by-laws and financial administration.

Through a click of a button, information relating to all spheres of government, best practices and legislation is available at no cost.  This puts an end to the fact finding missions.

In recognition of those whom performed well in the matric exams, I wish to announce that on the 28th of January 2011 we will be honouring best learners, educators and schools. Two bursaries in the amount of R 20 000 will be awarded to the best performing students.

I congratulate our parents and school governing bodies and all those who made us proud by contributing to the national pass aggregate by 11%.

Boipatong, the Home of Champions, as MMC Mabandla Ronyuza calls it, has  Bongani Gideon Buthelezi as the International Boxing Organization (IBO) champion.

He successfully defended his title against Hekkie Budler at the Emperors Palace yesterday. He has indeed made us proud. Let us rally behind our champions to make Boipatong a home of champions and Emfuleni a place of more champions.

Let us wish our national cricket team the Proteas a successful campaign in the forthcoming Cricket World Cup. Do not freeze. Make us proud.

Amended Integrated Development Plan

In terms of section 34 of the Local Government Municipal Systems Act 32 of 2000 “a municipal council must review its IDP annually in accordance with an assessment of its performance measurements in terms of section 41; and the extent that changing circumstances so demand; and may amend its IDP in accordance with a prescribed process”.

The changing demands are influenced by our desire to achieve a clean audit as part of “Operation Clean Audit”.

Ours is to ensure that progress thus far made since the attainment of a qualified remain irreversible.

This amendment addresses queries of the Auditor-General:

• On the absence of the Key Performance Indictors as outlined by the Local Government: Municipal Planning and performance management Regulations of 2001;
• The Service delivery and budget implementation plan especially on the key performance areas; and
• Asset register.

It is common practice that budget adjustments are done annually, which ultimately affected the IDP and resulted to it not being aligned to the adjusted budget.

In this instance the IDP exclusively outlines the capital projects and the operational plan will be incorporated into the service delivery and budget implementation plans.

The IDP is a product of community consultation and thus based upon community aspirations and expectations. This process should therefore be communicated to communities in terms of sections 2A and 2B of the Municipal Systems Act.

Madam Speaker, I withdraw the initial document on the amended IDP and replace it with an amended one.

Service delivery and Budget Implementation Plans

The Mid-Year Performance Assessment Report has been submitted to me in terms of section 72 of the Municipal Finance Management Act 56 of 2000.

This report has been further submitted to the National Treasury and the Provincial Treasury on the 25th January 2011 as required by legislation. One of the queries raised by the Auditor-General was the failure to submit the Service delivery and budget implementation. This had an effect of our audit.

However, I must indicate that these were duly submitted to the Auditor-General.

Adjustment budget 2010/11

This budget is tabled before this house Madam Speaker in terms of section 28 of the Municipal Finance Management Act.

Income

The adjustment budget puts revenue at R3,187 billion. This represents an increase of 0,1% (R4 million) from the original annual budget.

These additional allocations are as follows:

• Landfill sites   : R  2.195.126
• Prepaid electricity  : R  7,094,317
• Municipal Infrastructure Grant : R14,928.000
• Municipal Infrastructure Grant : R80 622,496
• Regional Sewer Scheme  : R  9,644,292
• Traffic fines   : R  2,235,000

Revenue collection has been mitigated through the collection of outstanding debt over short term and long term periods. This will be done through  correctly billing, delivery of accurate account on time and the collection of revenue on due date.

This process will result in accurate accounts, more collection of revenue and satisfaction of customer needs and financial viability of the municipality.

Expenditure

Adjustment budget allocation expenditure allocation is R3,187 billion. This increase represents a net effect of the increases and the decreases of expenditure votes.

Expenditure in terms of section 78 of the Municipal Finance Management Act was re-aligned with the cash flow of the municipality.

These increases and decreases are as follows:

Operational increases

Bulk electricity purchases : R38,000.000
Lease charges   : R20,322,340
Bulk water purchases  : R34,706,926

Operational decreases

Repairs and maintenance  : R36,174,759
Salaries and allowances  : R11,560.788
Special projects  : R26,311,050
Collection costs  : R  1,200,000
Audit fees   : R  1,000,000

The adjustment budget has been balanced through the reduction of provision for bad debts totalling R29 million and for approval of business plans in the amount of R80,6 million as part of the Municipal Infrastructure Grant for the re-aligned roads and storm water project which were previously funded by the municipality.

This revision process has undergone extensive and intensive consultation internally and constitutes a fair representation of all municipal clusters and their respective priorities.

Capital Grants

• Total grant budget increased by a net R98,5 million. The increase is due to roll overs from the previous financial year being accounted for now, elimination from the budget funds where there is no indication that funds will be received and additional grant funds received. The table above summarises the details.
• The MIG funded projects have been re-aligned to include previously ELM funded roads and storm water projects approved by CoGTA.

Own funded projects

• ELM funded projects have been reduced by R78,154 million. The reduction is mainly due to the re-alignment of projects previously funded by ELM as well as reallocations to fund the roll overs from the previous year uncompleted projects and/or projects that have not commenced to date due to the cash flow of the municipality and other delays.

Circular 54 of the Treasury regulations

Circular 54 of the Treasury provides possible guidelines within which to frame public-service delivery priorities and targets, together with the 12 outcomes as adopted by cabinet on the 10 January 2010.

The year 2011 marks the end of the five year period of local government since the last elections. With the elections mooted between the periods 2 March and 2 June 2011 this gives rise to compliance implications on the annual budget, the municipal property rates act (electricity, water, property rates, tariffs and taxes).

Revenue enhancement

To ensure the efficiency and correctness of our billing system we have appointed Deloitte and Touche as a transaction advisor on the billing system. 

This further led to the appointment of Motla Consulting on disconnecting those who do not pay for their services.

Those who default on their services are warned that as at February they will be disconnected. We call upon communities and businesses to start paying now or face the consequences of being disconnected.

50% debt write-off

This write-off is in terms of the Principles and Policy on Recoverable Debt and Writing-off of Irrecoverable Debt. In terms of this policy a client can apply for full settlement off an arrears account and qualify for write off of interest, penalty charges and 50% on the principal debt.

This-write off amounts to R80 891.78 for the month of December 2010.

These amounts are not reconcilable with the loss of revenue owing to non-payment of services. This calls for the intensification of the Revenue Enhancement Strategy.

Once more we urge our communities to pay for their services in order for the municipality to render a professional service and to speed service delivery optimally.

January 8 statement

During the 99th Anniversary of the African National Congress, President Jacob Zuma made a firm commitment to change the face of local government. He re-affirmed the commitment of the ruling party towards quality services and a better life.

As part of our international relations, I am proud to announce that we met with the management of Kaizer Chiefs to advance our cause of building a sporting region as part of our relations with PSV Eindhoven and the Eindhoven Municipality.

This partnership will lead towards building a Football Academy, sport development, talent identification and nurturing. This will lead to the full utilization of the George Thabe and Izak Steyl Stadiums, improvement of sport facilities. A Memorandum of   Understanding will be signed in February to concretize this partnership.

A game between PSV Eindhoven and Kaizer Chiefs will be held at George Thabe or  Netherlands as part of the exchange programme.

On the 12 February 2011, I wish to announce that the Evaton Fire Station will be official opened and handed over to communities. This service will ensure that our response to emergencies is within the reach and that life, limb and property are saved.

The MEC for Sport, Arts and Recreation is in the province as part of sport development. MMC Mike Muir and other stakeholders are in a planning meeting to develop strategies on how to speed sport development and to ensure rehabilitation of our sport facilities.

On the 31st January, together with the Provincial Housing Department and Sedibeng District Municipality we will be handing houses to their rightful beneficiaries. Indeed Madam Speaker, this is a confirmation of our conviction that there shall be housing, security and comfort.

As we enter this year on its 28th day, let us share the grief of those who lost their beloved ones during and after the festive season. Let us pay homage to the late regional commander of the fire, Rocky Senoamadi. Our condolences go to his family, friends and colleagues.

May his soul rest in peace.

Local government elections

The 5th and 6th February 2011 provides an opportunity for residents to register for the forthcoming local government elections.

As we approach the end of the five year term of local government, let us continue to serve our people with determination. Let us ensure that we embark on a campaign to encourage our residents, young people in particular, to register on the 5 th and 6th February 2011.

This is the only opportunity to vote in the important elections that determine the future and wellbeing of our communities.

As I conclude Madam Speaker, this Council has not had an opportunity to bid farewell to the former Budget Manager, Mr P Motaung who has left the municipality to seek greener pastures.

Let me pay tribute and express our appreciation for the sterling work he has done on budgetary matters and other responsibilities entrusted upon him. Let us wish him well for a better future.

We wish Tata Nelson Mandela a speedy recovery.

I present to this august house Madam Speaker an amended Integrated Development Plan for the 2010/11 financial year, an adjustment budget for 2010/11 in terms of 28 of the Municipal Finance Management Act 56 of 2003 and the Service Delivery and Budget Implementation Plans and other Mayoral Committee items.

Ngiyabonga.

“You Belong-We Care”