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ANNUAL REPORT 

2013/ 2014 




eThekwini Municipality 
P.O.Box 1014 
Durban 
4000 


Contact Details 

Email: Gonie.Dorasamv@clurban.gov.za 
Website: www.durban.gov.za 






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CONTENTS 

Page No. 


Volume One 





Contents Page 


1 

Preface 


3 

Acronyms 


4 




Chapter One 

Mayor's Message 

7 


Municipal Manager's Overview 

10 




Chapter Two 

Governance 

14 

2.1 

Introduction to Governance 

14 

2.2 

Political Governance 

14 

2.3 

Administrative Governance 

17 

2.4 

Performance, Monitoring and Evaluation 

26 




Chapter Three 

Service Delivery Performance 

103 

3.1 

Introduction 

103 

3.2 

Water Provision 

103 

3.3 

Waste Water (Sanitation) Provision 

107 

3.4 

Electricity Provision 

109 

3.5 

Waste Management 

112 

3.6 

Flousing 

118 

3.7 

Roads 

126 

3.8 

Transport 

129 

3.9 

Stormwater Drainage 

133 

3.10 

Local Economic Development (including Tourism and Markets) 

145 

3.11 

Security and Safety 

175 

3.12 

Disaster Management 

178 

3.13 

Fire and Emergency Services 

186 

3.14 

Development Planning, Environment and Management Unit 

189 

3.15 

Parks, Recreation and Culture 

203 

3.16 

eThekwini Flealth Unit 

216 




Chapter Four 

Organisational Development Performance 

228 

4.1 

Introduction 

228 

4.2 

Employees 

229 

4.3 

Managing the Municipal Workforce 

232 

4.4 

Capacitating the Municipal Workforce 

234 

4.5 

Occupational Flealth 

234 




Chapter Five 

Financial Performance 

239 

5.1 

Introduction 

239 

5.2 

Statements of Financial Performance 

240 


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5.3 

Grants 

244 

5.4 

Asset Management 

250 

5.5 

Performance Indicators and Benchmarks 

253 

5.6 

Financial Ratios 

257 

5.7 

Spending against Capital Budget 

265 

5.8 

Sources of Finance 

266 

5.9 

Basic Service and Infrastructure Backlogs - Overview 

270 

5.10 

Cash Flow Management and Investments 

272 

5. 11 

Borrowings and Investments 

275 

5.12 

Supply Chain Management 

277 

5. 13 

Generally Recognised Accounting Practices (GRAP) 

278 




Chapter Six 

Auditor General's Report and Management Response 

279 

6. 1 

Report of the Auditor General 

280 

6. 2 

Management Responses 

285 





Appendices 


A 

PR/Ward Councillors 

291 

B 

Committees (other than Exco) and purposes of meetings 

306 

C 

Disclosures of Financial Interest 

309 

D 

Audit and Risk Committee Report 

313 

E 

Capital Budget by Cluster 

325 

F 

Conditional Grants (excluding MIG) 

328 

G 

Capital Programme by Major Projects 

331 

H 

Capital Expenditure 

338 

1 

Revenue Collection Performance by vote 

342 

J 

Revenue Collection Performance by source 

343 

K 

Declaration of Loans and Grants by Municipality 2010/11 

344 

L 

Municipal/Entity Functions 

347 





Volume Two 






EThekwini Municipality and its Municipal Entities Consolidated Annual 

Financial Statements 2012/13 

351 


Volume Three 



Durban Marine Theme Park (Pty) Ltd. Annual Report incl. Annual Financial 
Statements 

465 


Volume Four 



Inkosi Albert Luthuli ICC (Pty) Ltd. Annual Report incl. Annual Financial 
Statements 

579 


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Preface 


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Section 121 (1) of the Local Government: Municipal Finance Management Act 56 of 2003 (MFMA) 
stipulates that: "Every municipality and municipal entity must for each financial year prepare an 
annual report in accordance with its guidelines." 

The purpose of the annual report is to: 

(a) Provide a record of the activities of the eThekwini Council during the financial year 2013/2014; 

(b) Provide a report on performance against the budget of the eThekwini Council for the financial year 
2013/2014; and 

(c) Promote accountability to the local community for the decisions made throughout the year by the 
Municipality. 


According to the MFMA, this Report should include: 

(a) The annual financial statements of the Municipality, and consolidated annual financial statements, 
submitted to the Auditor-General for audit in terms of section 126 (1) of the MFMA 

(b) The Auditor-General's audit report in terms of section 126 (3) of the MFMA and in accordance with 
s45 (b) of the MSA; on the financial statements in (a) above; 

(c) The annual performance report of the Municipality as prepared by the eThekwini Municipality in 
terms of section 45 (b) of the Local Government: Municipal Systems Act 32 of 2000 (MSA); 

(d) An assessment of the arrears on municipal taxes and service charges; 

(e) An assessment of the Municipality's performance against the measurable performance objectives 
referred to in Section 17 (3) (b) of the MFMA for revenue collection from each revenue source and for 
each vote in the Municipality's approved budget for the financial year 2013/2014; 

(f) Corrective action taken in response to issues raised in the audit reports referred to in paragraphs 
(b) and (d); and 

(g) Recommendations of the Municipality's Audit Committee. 


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ACRONYMS 


ABM 

Area-Based Management 

ABET 

Adult Basic Education and Training 

AFCON 

Africa Cup of Nations 

AQMP 

Air Quality Managment Plan 

ARVs 

Anti-retrovirals 

BPM 

Business Process Management 

BR&E 

Business Retention and Expansion 

BRICS 

Brazil, Russia, India, China and South Africa 

BSU 

Business Support Unit 

CBD 

Central Business District 

CCTV 

Closed Circuit Television 

CDM 

Clean Development Mechanism 

CE 

City Enterprises 

CIFAL 

Relates to the French term, translated: International training centre for local 
Authorities 

CM/MM 

City Manager/Municipal Manager 

CMP 

Coastal Management Plan 

COE 

Centre of Expertise 

COGTA 

Department of Co-operative Governance and T raditional Affairs 

CRA 

Contingent Reserve Arrangement 

CSW 

Cleansing and Solid Waste 

DAEA 

Department of Agriculture and Environmental Affairs 

DCM 

Deputy City Manager 

DEAT 

Department of Environmental Affairs and Tourism 

DH (ENV) 

Deputy Flead: Environmental Management 

DFO 

Durban Film Office 

DPLG 

Department of Provincial and Local Government 

DTI 

Department of Trade and Industry 

DTP 

Dube Trade Port 

ECOD 

Economic Development and Planning Committee 

EDPP 

Economic Development Programmes Departments 

EDU 

Economic Development Unit 

EE 

Employment Equity 

EESMP/DMOSS 

eThekwini Environmental Services Management Plan/ 

Durban Metropolitan Open Space System 

EIA 

Environmental Impact Assessment 

EMA 

eThekwini Municipal Area 

EMD 

Environmental Management Department 

EMS 

Environmental Management System 

ETA 

eThekwini Transport Authority 

ETM 

eThekwini Municipality 

EPWP 

Expanded Public Works Programme 

ETA 

eThekwini Transport Authority 

EXCO 

Executive Committee 

ESW 

eThekwini Solid Waste 

EWS 

eThekwini Water Services 


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GDP 

Gross Domestic Product 

GIRO 

Geographic Information and Policy Office 

GIS 

Geographic Information System 

HHLD/HH 

Household 

HIV/AIDS 

Human Immunodeficiency Virus Infection/Acquired Immunodeficiency 

Syndrome 


HR 

Human resources 

ICC 

International Convention Centre 

ICT 

Information and Communication Technology 

IDP 

Integrated Development Plan 

lEP 

Informal Economy Policy 

IMESA 

Institution of Municipal Engineering of Southern Africa 

IPU 

Investment Promotion Unit 

IRPTN 

Integrated Rapid Public Transport Network 

IT 

Information Technology 

JDMC 

Joint Development Management Committee 

KPIs 

Key Performance Indicators 

LAP 

Local Area Plan 

LED 

Local Economic Development 

MFMA 

Local Government: Municipal Finance Management Act 56 of 2003 

MIG 

Municipal Infrastructure Grant 

MILE 

Municipal Institute of Learning 

MOA 

Memorandum of Agreement 

MPRA 

Local Government: Municipal Property Rates Act 6 of 2004 

MSA 

Local Government: Municipal Systems Act 32 of 2000 

MTEF 

Medium term expenditure framework 

NBR 

National Building Regulations 

NCOP 

National Council of Provinces 

NDP 

Nodal Development Plan 

NEPAD 

New Partnership for Africa's Development 

NGO 

Non-government Organisation 

NLTA 

National Land Transport Act 

NPA 

National Ports Authority 

NRW 

Non-Revenue Water 

PDIs 

Previously Disadvantaged Individuals 

(P)INK 

(Phoenix), Inanda, Ntuzuma and KwaMashu area 

PIP 

Phoenix Industrial Park 

PMS 

Performance Monitoring System 

PMTCT 

Prevention of mother to child transmission 

PMU 

Project Management Unit 

PR 

Proportional Representation 

QOL 

Quality of Life 

QLS 

Quality Living Standards 

RIMMS 

Roads, Infrastructure Maintenance Management System 


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ROD 

Record of Decision 

SACN 

South African Cities Network 

SAPI 

South African Planning Institute 

SAPREF 

South African Petroleum Refineries 

SCI 

Sustainable Cities Initiative 

SCM 

Supply Chain Management 

SDB 

South Durban Basin 

SDBIP 

Service Delivery and Budget Implementation Plan 

SD&CE 

Sustainable Development and City Enterprises (Council committee) 

SDP 

Spatial Development Plan 

SDF 

Spatial Development Framework 

SEDA 

Small Enterprise Development Agency 

SETA 

Sectoral Education Training Authority 

SHIs 

Social Flousing Institutions 

SLA 

Service level agreement 

SMMEs 

Small, Micro and Medium Enterprises 

SPU 

Special Projects Unit 

UNFCCC 

United Nations Framework Convention on Climate Change 

VCI 

Visual conditions index 

WAN 

Wireless Area Network 

WSP 

Workplace Skills Plan 


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7 

CHAPTER 1 MESSAGE FROM YOUR MAYOR 

Mayor: Councillor James Nxumalo 



Dear eThekwini Municipality Stakeholder, 

A year ago when I was writing my address I was thinking fondly of Madiba and wishing that he would 
recover from his illness and return home to spend his twilight years with his family. It was not to be 
as this true servant leader was called to a deserved rest in December leaving a void impossible to fill. 
In my life and including my role as Mayor, I have always tried to model myself to be like Tata Madiba. 
I need not say how difficult a mission it is for anyone to try to emulate this personage so abundantly 
blessed with the powers of living the highest values humanely possible. The comfort for me though 
has been the realisation that while I may not be equally blessed, I have the opportunity to evolve to 
an extent to emulate this greatest leader of our time. 

The most important lesson I learned from Dr. Nelson Rolihlahia Mandela is servant leadership. As a 
perfect servant leader he offered an inclusive vision, listened carefully to others, persuaded through 
reason and had the power to heal divisions and build community. I have made this call previously 
where I appealed to all employees and politicians to consider themselves as servant leaders if we are 
to achieve our vision of becoming Africa's most caring and liveable city. Our communities and our 
country need servant leadership more than ever. 

This Annual Report is a record of much of what we as eThekwini Municipality have achieved in the 
2013/2014 financial year. The achievements highlighted are commendable, but I know we can do 
better and more. The serious economic recession, unemployment and poverty is a huge challenge 
and in order to do better we need more servant leaders. The appeal for servant leaders is not only 
from eThekwini Municipality alone, but from the private sector too, as their contribution to 
employment creation and poverty alleviation cannot be more emphasized. 

The transition to democracy has now reached twenty years and despite all its challenges eThekwini 
can claim it has made it a better place for all. In spite of the huge influx into the City due to 
urbanisation and its impact of increasing the housing backlogs, eThekwini has produced new homes 
for 171 337 families. Over the twenty years, it has won numerous awards as a leading Metro in the 
provision of housing. Having transitioned with an existing backlog with the advent of the new 
dispensation the problem was exacerbated by the mushrooming of numerous informal settlements. 
People in search of a better life and economic opportunities naturally got attracted to the eThekwini 
Municipality but the lack of employment and proper accommodation has fostered the mushrooming 
of informal settlements. Those living in the informal settlements have a right to basic services, thus 


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forcing eThekwini to provide interim water and electricity services to these settlements. This has no 
doubt placed added pressure on the Municipality's normal service delivery agenda. 

The focus of our economic growth strategy is to create sustainable livelihoods. Many permanent and 
temporary jobs have been created via our service delivery projects. The interventions our Economic 
Development Unit has initiated, as detailed in chapter three of this Annual Report, bears testimony to 
our commitment to job creation and poverty eradication. 

Readers of my address in the last Annual Report will recall my reference to the "Clean My City" 
campaign launched in March last year. This has involved clean-up operations, identification of 
maintenance challenges, by-law enforcement as well as an education drive to change and influence 
the attitudes of people. This intervention has been a coordinated approach involving all Municipal 
departments as well as other stakeholders such as the community, business, Non-Governmental 
Organisations, police as well as national and provincial government departments. If we are to achieve 
our vision to be Africa's most caring and liveable city, then this campaign needs to succeed. 

The City Manager chairs a weekly feedback meeting on Monday mornings and though the campaign 
is progressing as planned with a marked difference in the City's condition, it is evident that there is 
still a long way to go if we are to succeed. We want to work together with different partners to change 
public attitudes and garner public support for the vision of the City. We want to move into the future 
as a united force. I want to reiterate what I said at the launch of the campaign, "We want to involve 
the community in this campaign. People must understand that it is not only the responsibility of 
people hired by the Municipality to clean, but everyone has an obligation to maintain their 
environment." 

One of the biggest challenges I consider under my watch is the threat of corruption and its impact on 
service delivery. EThekwini Municipality has partnered with the KwaZulu-Natal Office of the Premier 
in the launch of the "I do right campaign". The campaign is to raise awareness about corruption, fraud, 
maladministration and human rights violations as well as educate the public on where and how to 
report any of these incidences of the above both at the provincial level and at the local municipal level. 
We have adopted a zero tolerance against fraud and corruption and anyone with knowledge of fraud 
and corruption are encouraged to report same to our City Integrity and Investigations Unit on 0800 
202020 (toll free) or email ombuds@durban.gov.za. 

The confidence I have in the future sustainability of our Municipality has increased tenfold with the 
recent prestigious international award won by our Water and Sanitation Unit. The 2014 Stockholm 
Industry Water Award, received by eThekwini Municipality, is a first for any municipality in the world 
and I trust that such an achievement should also infuse much confidence in our many stakeholders. 
This is only one example of the cutting edge innovation our Municipality is capable of and also reflects 
the kind of thought leaders, we have been blessed with. It is fitting that the former Head: Water and 
Sanitation, Mr. Neil Macleod received the award just prior to his retirement in August 2014. I thank 
him for his dedication and am pleased that his services will not be lost to the industry. 

The financial year past has been good and the last twenty years has been moderately successful 
against the odds faced post democratisation. I know we can do better and that is why I appeal to both 
officials and politicians to double their efforts and let us make our beautiful City Africa's most caring 
and liveable city. 


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In conclusion, I must thank all the dedicated staff and Councillors who have contributed to a great 
2013/2014 financial year. Sincere thanks also to the residents and businesses for their support and 
loyalty to our Municipality without which we would fail to maintain a collection rate that makes us 
one of the best financially viable Municipalities. 


Councillor James Nxumalo. 
Mayor: eThekwini Municipality 


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MUNICIPAL MANAGER'S OVERVIEW 



Contact details for the City Manager are as 
follows: City Hall 
Dr Pixley KaSeme Street 
P.O. Box 1014, 

Durban 4000 

Tel. +27 31 311 1100 

Fax. +27 313112170 


Email: metroceo(5)durban.gov.za 


The 2013/2014 financial year will be remembered sadly as it was the year in which the world bid a 
final farewell to our internationally acclaimed Father of our Nation, Mr. Nelson Mandela. On a positive 
note it was also the year our country celebrated the first twenty years of democracy, during which 
development focussed equitably, irrespective of race creed or colour. The Municipality has come a 
long way with many advances, but the challenge to undo the damage caused by the erstwhile system 
needs a lot more than twenty years to fix. The progress made in our particular Municipality is 
encouraging given the commitment from both political and administrative officials. My overview is 
structured in keeping with the trend towards integrated reporting with emphasis on our strategy, 
performance, risks and challenges and the sustainability of the organisation. 

The way in which we aim to achieve our vision of becoming Africa's most caring and liveable city is by 
focussing on six priority areas viz. a safe city, an accessible city, an environmentally sustainable city, a 
city creating sustainable livelihoods, a socially cohesive city, and a financially sustainable city. The six 
focus areas have been translated into an eight point plan which is detailed in our Integrated 
Development Plan (IDP) and interested stakeholders are encouraged to familiarise themselves by 
studying this document which is easily accessible on our website www.durban.gov.za . The 
implementation of all eight plans is tracked through the Service Delivery Budget Implementation Plan 
(SDBIP). The SDBIP serves as a management tool as well as in year reporting to the respective oversight 
committees. The plans are: 

Plan 1: Develop and sustain our spatial, natural and built environment: The goal of this plan is to 
lead, direct and manage the spatial, built and natural environment to ensure the sustainable and 
integrated growth and development of our Municipality for the benefit of all its citizens. 

Plan 2: Developing a prosperous, diverse economy and employment creation: This plan aims to 
develop the economic wealth of the eThekwini Region for the material well-being of all its citizens. 

Plan 3: Creating a quality living environment: This plan is to promote access to equitable, appropriate 
and sustainable levels of infrastructure, community services, and to facilitate access to housing. 


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Plan 4: Fostering a socially equitable environment: The plan is to promote and create a safe, healthy 
and secure environment. 

Plan 5: Creating a platform for growth, empowerment and skills development; This plan aims to 
establish eThekwini as a learning city which results in a skilled workforce as well as an empowered 
citizenry. 

Plan 6: Embracing our cultural diversity, arts and heritage: The objective is to stimulate creativity 
cross culturally which leads to social cohesion and economic empowerment. 

Plan 7: Good governance and responsive local government: The goal is to ensure a strong, caring and 
democratic institution to promote and support a consultative and participatory local government. 

Plan 8; Financially accountable and sustainable city; This plan strives to maximise the Municipality's 
financial resources to ensure long-term financial viability and sustainability. 

Performance 

Two critical key performance indicators of any Municipality's performance is revenue collection and 
expenditure. Of all the South African Metros, eThekwini has performed best in revenue collection 
with a rate of 104.84 %. This was followed by Tshwane (97.3%) and Mangaung (81.6%). In terms of 
expenditure eThekwini was again furthest ahead (97.6%), followed by Johannesburg and Tshwane 
(both marginally behind at 96.9%), and Mangaung again lowest, spending the lowest portion of its 
adjusted budget (84.7%). (Source-Municipal IQ Briefing 01 Sept 14 No. 530) 

The capital expenditure of approximately R 4.201 million as at 30 June 2014, represents approximately 
89% spend on the adjusted budgeted amount. The projects and programmes on which the capital 
budget was spent is set out in the body of this Annual Report under the relevant units' reporting. 

The current long term credit rating of AA-received by the City is the highest given to a municipality in 
South Africa and places eThekwini in a favourable position should it find the need to borrow. 

Readers of my previous overviews would recall the emphasis I placed on the reduction of irregular 
expenditure. This close scrutiny of irregular expenditure has paid off as evidenced by the drastic 
reduction from R782.5million when I first joined eThekwini in January 2012 to 334 million in the 
2013/2014 financial year, resulting in a 57.3% reduction. This is a giant step towards achieving the 
ultimate target of receiving a clean audit. 

Ethekwini's search for excellence in service delivery is best illustrated in its latest prestigious winning 
of the Stockholm Industry Water Award for 2014. In its citation, the Stockholm Industry Water Award 
(SIWA) jury states "eThekwini has championed the approach to provide sufficient water to sustain 
human life, as expressed in the South African constitution, now embedded in nationai poiicy. The 
methods used and results achieved by eThekwini Water and Sanitation serve as a steriing example for 
the many communities woridwide facing similar challenges." 

The SIWA press release goes on to say "In addition to successfully providing basic services to a large 
and diverse population, eThekwini Water and Sanitation is at the forefront of exploring technical and 
social solutions. One example is a mini hydro-power project: instead of using pressure reducing valves 
in pipes running down steep hillsides, the company is installing mini turbines using the excess pressure 
to generate electricity for the city's low tension grid. The eThekwini municipality is also pioneering 
solutions to convert urban wastewater challenges to agricultural opportunities as well as harvesting 
rainwater. 

The combined result is one of the most progressive utilities in the world. The open approach to 
experimenting and piloting new solutions across both technical and social aspects of service delivery 


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has made eThekwini a forerunner in the world of utility-run services. One partner comments that 
"leaders at eThekwini have already been betting on new and risky approaches to test innovations that 
wili ultimateiy have a long term benefit for the population, most municipaiities refrain from exploring 
ideas out of the box, focusing on business as usuai." 

The above commendation from an independent international source is a reflection of the world class 
level of service that the eThekwini Municipality has received credit for and of which it is proud. 

One of the best ways to monitor the performance on service delivery is a close scrutiny of the capital 
expenditure. As the Accounting Officer of the City, I chair a weekly capital expenditure meeting where 
reasons for under expenditure, delays and issues of contract management is deliberated upon with 
relevant officials. I believe this focus has been the main reason why eThekwini Municipality is the 
front runner amongst Metros in the capital expenditure year on year. 

This Annual Report is for the departments to report on their performance for the 2013/2014 financial 
year and I trust that the readers will appreciate the information supplied by the Departments and 
Entities in the chapters and Annexures that follow. 

Challenges 

The water loss in distribution for the year averaged 39,2% and this is a concern as there has been a 
deterioration from the previous year, which showed a loss of 37. 3%. Electricity loss in distribution is 
6.11 %, in spite of interventions and additional costs. 

The current funding model for provision of houses is based on the Municipality bridge-financing the 
housing projects and being reimbursed thereafter by the Human Settlements Department and clearly 
higher project costs make the sustainability of this kind of a funding model difficult to sustain. 
Infrastructure and service delivery backlogs are increasing continuously due mainly to rural migration 
into the urban areas. 

As with the rest of the country the economic outlook and inflation are having a huge impact on the 
livelihood of our citizens and in turn the Municipality. The Municipality has very little control on cost 
escalations on bulk purchases of electricity from Eskom and water from Umgeni Water. In order to 
sustain itself the Municipality has no option but to pass the costs onto already hard hit consumers. 
The reintegration of Durban Transport in the City is also proving to be a difficult challenge. 

Sustainability 

The sustainability of any Municipality is very much dependent on the political maturity of the 
organization. Much of the advances achieved by the Municipality can be attributed to the robust and 
yet mature debates in the various Committees resulting in objective decision making in the political 
realm. The decisions are then translated into effective service delivery by dedicated officials whose 
responsibility it is to effect implementation. 

Our revenue collection rate of 104.84 % supersedes every other Municipality in South Africa and our 
cash holding is a healthy 109 days against a National Treasury benchmark of 90 days. As indicated 
earlier our credit rating of AA minus is the best given to a Municipality and borrowing at competitive 
rates will be easy should the need arise. 

The Municipality has introduced a Conflict of Interest working group which makes recommendations 
to a newly constituted Blacklisting Committee whose responsibility it is to blacklist enterprises that do 
business with the Municipality illegally or proven to have performed below accepted standards. This 
intervention is also assisting with stemming the level of irregular expenditure. 

Certain non-core functions and services that were historically provided by our Municipality but which. 


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in terms of the constitution, now fall under the responsibility of National or Provincial Authorities are 
still being provided by the Municipality. These functions include the provision of Health Services, 
Libraries, Museums, and Housing. The reduction or non-payment of subsidies for these services 
require the Municipality to use some of its own resources to make up the shortfall. The sustainability 
of providing these services will depend on financial support from Provincial and to a larger extent 
National Government. It is pleasing to note that in order to address their constitutional mandate, the 
Provincial Department of Arts and Culture has indicated that the phasing in of specific funding 
allocations will continue in respect of the library service (subsidy towards staffing costs). Regarding 
the Health Service, the on-going engagement with Province has yielded some positive results in that 
the level of subsidy is increasing annually towards this function. Despite the grants received, the 
funding is insufficient and poses a strain on the Municipality to meet unfunded mandates. 

The operating budget increased from R24 billion to R24.7 billion (2.9%). This below inflation increase 
was achieved by the introduction of austerity measures. Some examples are the drastic reduction in 
overtime and consultant costs, rationalisation of vacant posts, limiting overseas travel, use of 
economy class and review of security costs, etc. Salaries and Allowances of the total Operating 
Expenditure has remained steady at 27.1 %. 

Initiatives to reduce the water loss are continuing and based on the intervention plan established, a 
system of performance monitoring and reporting for each of the identified interventions has been 
established. The municipality has also implemented the water amnesty project whereby citizens using 
water illegally could come clean and disclose their illegal water connections. Every possible measure 
will be taken to curb the water loss as this has an impact on the setting of an affordable water tariff. 
The effectiveness of the measures put into place will be reviewed on an on-going basis. 

Electricity theft continues to be a huge problem. A mass operation is being embarked on to crack 
down on illegal connections in partnership with the Metro Police, private security and the South 
African Police Services. Operations are carried out in targeted areas after investigations are conducted 
by sweep teams that checks electricity meters in properties. 

To make sure that illegal connections are eradicated in the targeted areas, operations are carried out 
at least once a week. Other interventions include optimal network configuration, effective network 
maintenance and network loading, and installation of anti-theft technologies at substations. 

The uncertainty surrounding the running of the municipal bus service has been resolved with the 
council approving the establishment of a municipal entity to run the Durban Transport Service. This 
is considered to be the best option as it would cost less and offer greater control, governance and 
insight to the municipality. 

In conclusion, my sincere thanks to the Mayor, politicians, staff and various stakeholders who have all 
contributed to making this a successful year. 


Mr Sibusiso Sithole 


City Manager; eThekwini Municipality 



14 

CHAPTER TWO - GOVERNANCE 

2.1 INTRODUCTION TO GOVERNANCE 

The Municipality continuously strives to uphold the values of good governance as espoused by the 
King III report. The proof of its seriousness can best be judged on how it has dealt with issues of ethics, 
corruption and the priority given to risk management. We boast a robust Audit Committee in place 
which meets regularly and errant officials are often called to account. The Municipal Public Accounts 
Committee (MPAC) complements the Audit Committee and ensures accountability by playing an 
additional oversight role. 

The Municipality views the reduction of irregular expenditure as a very high priority. Whilst the 
irregular expenditure may appear to be very high at R334 million it is important to note that R296 
million related to a Section 36 contract which was deemed as irregular even though the Municipality 
received full value for such expenditure. The irregular expenditure will reduce to R38 million if the 
Section 36 contract is excluded. Stringent measures have been implemented to drastically reduce 
utilisation of Section 36 contracts and consequently reduce the risk of possible irregular expenditure. 

In the spirit of our Constitution the Municipality ensures regular public participation with prime 
examples being the extensive budget hearings and the wide distribution of the Annual Reports for 
public comments . 

2.2 POLITICAL GOVERNANCE 

The Council operates on an Executive Committee System. 

Section 80 Committees 


The following Support Committees have been established in terms of Section 80 of the Municipal 
Structures Act to assist the Executive Committee:- 

a) Community & Emergency Services Committee 

b) Economic Development & Planning Committee 

c) Finance & Procurement Committee 

d) Governance and & Human Resources Committee 

e) Human Settlements & Infrastructure Committee 

Each of the Support Committees deliberates on matters that fall within its specific terms of reference 
and makes recommendations to the Executive Committee for approval or where necessary for 
endorsement by the Executive Committee for final approval by the full Council. 

Any matter that has financial implications has to be signed off by the Chief Financial Officer before it 
is approved. The Executive Committee has wide ranging delegations with the exception of the powers 
provided to Council in terms of Section 160 (2) of the Constitution of the Republic of South Africa, 
1996. The Executive Committee makes recommendations for approval by Council on such matters. 



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Section 79 Committees 


In addition Council has established the following Committees in terms of Section 79 of the Municipal 
Structures Act:- 

a) AIDS Committee 

b) Municipal Public Accounts Committee 

c) Speaker's Committee 

The AIDS Committee is responsible for providing leadership, building consensus around HIV and AIDS 
policy and strategy matters, promoting intersectoral collaboration and overseeing the 
implementation and review of the National Strategic Plan on HIV and AIDS and Sexually Transmitted 
Diseases at a local level. The Committee considers and reports to the Executive Committee on (a) The 
incidence of persons infected and affected by HIV and AIDS within the Municipal area and (b) 
Strategies for a comprehensive Municipal response to HIV and AIDS. 

The Municipal Public Accounts Committee which is made up of non-executive Councillors ensures that 
the administration, municipal agencies and entities are held accountable for their management of 
municipal funds and assets, and to ensure the efficient and effective utilization of council resources. 
The Committee also considers the Annual Report and makes recommendations to the Council on the 
Annual Report, by submission of an oversight report. The Committee's oversight report is published 
separately in accordance with the Municipal Finance Management Act. 

The Speaker's Committee assists the Speaker with his statutory duties, including the statutory duty 
assigned to the Speaker to ensure the proper conduct of council meetings. 

Statutory Committees 

The following Statutory Committees have been established:- 

a) Appeals Committee 

b) Civilian Oversight Committee 

c) Ethics Committee 

The Appeals Committee which is established in terms of section 62 (4) (c) (II) of the Municipal Systems 
Act hears appeals against decisions taken by a political structure or political office bearer of the 
municipality, in terms of a power or duty delegated or sub-delegated by a delegating authority to the 
political office bearer or political structure. 

The Civilian Oversight Committee performs the function of civilian supervision of the municipal police 
service by promoting accountability and transparency in the municipal police service; monitoring the 
implementation of policy and directives; and evaluating the function of the municipal police service 
and reporting to the municipal council or City Manager thereon. 

The Ethics Committee has been established by Council to ensure compliance with the Code of 
Conduct, as set out in Schedule 1 of the Local Government: Municipal Systems Act 32 of 2000, in the 
Municipal Council and Council Committees. It investigates and identifies findings on any alleged 
breaches of the Code and makes appropriate recommendations to the Council. 



16 


Administrative Committees 


The Council has also established administrative committees as follows:- 

a) Performance Audit Committee 

b) Bid Specification Committee 

c) Bid Evaluation Committee 

d) Bid Adjudication Committee 

e) Risk Committee 

The Performance Audit Committee is established in terms of Section 166 of the Municipal Finance 
Management Act. It is an independent external committee, which provides an oversight function over 
the financial management and performance of the Municipality. 

The Municipal Supply Chain Management Regulations require a committee system for competitive 
bids, consisting of a Bid Specification, a Bid Evaluation and a Bid Adjudication Committee. 

i) The Bid Specification Committee compiles the specifications for all goods or services 
procured by the municipality or municipal entity. 

ii) The Bid Evaluation Committee evaluates bids in accordance with the specifications for a 
specific procurement; and the points system set out in terms of paragraph 27 (2) (f) of the 
SCM Policy and as prescribed in terms of the Preferential Procurement Policy Framework 
Act. 

iii) The Bid Adjudication Committee considers reports and recommendations of the bid 
evaluation committee; and either makes a final award or a recommendation to the 
Accounting Officer to make the final award; or makes another recommendation to the 
Accounting Officer on how to proceed with the relevant procurement. 

The Risk Committee assists the City Manager and Council to fulfil their risk management and control 
responsibilities in accordance with prescribed legislation and corporate governance principles. 


2.2.1 POLITICAL STRUCTURE 

MAYOR : Councillor James Sikhosiphi Nxumalo 

DEPUTY MAYOR : Councillor Nomvuzo Francisca Shabalala 

SPEAKER : Councillor Loganathan Naidoo 

CHIEF WHIP Councillor Stanley Zamokwakhe Xulu 

1. Councillor James Sikhosiphi Nxumalo (Chairperson) (ANC) 

EXECUTIVE COMMITTEE 

2. Councillor Nomvuzo Francisca Shabalala (Deputy Chairperson) (ANC) 

3. Councillor Joice Nondumiso Cele (ANC) 

4. Councillor Heinz Ulrik de Boer (DA) 

5. Councillor Sibusiso Nigel Gumede (ANC) 

6. Councillor Zandile Ruth Thelma Gumede (ANC) 

7. Councillor Zwakele Maxwell Mncwango (DA) 

8. Councillor Fawzia Peer (ANC) 

9. Councillor Bongiwe Rose Mtshali (NFP) 

10. Councillor Patrick Pillay (MF) 

11. Councillor Loganathan Naidoo (Ex-Officio) (ANC) 

12. Councillor Stanley Zamokwakhe Xulu (Ex-Officio) (ANC) 

EThekwini Municipality comprises a total of 205 Councillors of which 103 are Ward Councillors and 
the other 102 are Proportional Representative (PR) Councillors. Council continues to operate on an 
Executive Committee System. With regard to Ward Councillors there are 87 male Councillors and 16 
female Councillors. In respect of PR Councillors there are 52 male Councillors and 50 female 



17 

Councillors. There are a total of 139 male Councillors and 66 female Councillors in the eThekwini 
Municipality. 

Political Parties are represented on Council as follows:- 


PARTY NAME 

WARD SEATS 

PR LIST SEATS 

TOTAL 

African Christian Democratic Party 

0 

2 

2 

African National Congress 

79 

48 

127 

Azanian People's Convention 

0 

1 

1 

Congress of the People 

0 

1 

1 

Democratic Alliance 

19 

26 

45 

Inkatha Freedom Party 

1 

8 

9 

Minority Front 

3 

5 

8 

National Freedom Party 

0 

10 

10 

Truly Alliance 

0 

1 

1 

Independent 

1 

0 

1 

TOTAL SEATS 

103 

102 

205 


Note: Appendix A lists Councillors. 

Appendix B sets out committees and committee purposes. 


2.3 ADMINISTRATIVE GOVERNANCE 

The Municipal Manager, as the accounting officer of the Municipality, provides guidance to political 
structures, political office bearers, and officials of the Municipality and the entities which is under the 
sole control of the Municipality. 

There are seven Deputy City Managers (DCMs) who report to the City Manager. Each DCM is 
responsible for a Cluster (thematic area) as reflected on the organogram below. The Units within the 
clusters are managed by their respective Heads who report to the DCM's. In addition to the DCM's, 
the following five offices viz. City Manager's Operations Office, Office of Strategic Management, 
Internal Audit and Risk, Information Management, and City Integrity and Investigations all report 
directly to the City Manager. 

The City Manager, DCMs and those offices reporting directly to the City Manager meet weekly as a 
DCM's Forum to discuss issues such as service delivery and other strategic municipal related issues. 
Currently three DCM posts are vacant as reflected on the organogram below. 


17 




APPROVED: EXCO-18/03/2014 


18 


CITY OF ETHEKWINI 

APPROVED HIGH-LEVELSTRUCTURE 



1 


2.3.1 INTEGRATED DEVELOPMENT PLAN (IDP) 

The 2013-14 Review of the Municipal IDP was adopted by Council on the 29 May 2013 together with 
the 2013/14 Medium Term Revenue and Expenditure Framework. In developing the IDP and the 
Budget, the Municipality embarked on an extensive process to engage with internal and external 
stakeholders to elicit comments which fed into the compilation of the 2013/2014 IDP Review. The IDP 
is the strategic driver for development and implementation in the Municipality. The IDP aligns the 
Municipality's development objectives, budget and performance monitoring framework. Strategic 
development policies at an International, National and Provincial level, e.g. the Millennium 
Development Goals, National Planning Commission and the Provincial Growth and Development 
Strategy respectively, have informed the development of the 2013/14 IDP. 

The 2030 Vision, in line with the Long Term Development Framework, provides the strategic direction 
for the IDP development goals and strategy. The identified priorities and focal areas were presented 
to the public through an extensive public participation process which involved staff from Budget, IDP 
and Performance Monitoring and Evaluation Units. Comments raised during the public interaction 
process were used to update and amend the 2013/14 IDP. 

The 2013/14 IDP was rated as one of the top I DP's amongst the 61 KZN municipalities by the MEC. The 
municipality also received an award from the MEC of COGTA for having one of the Top Ten IDPs for 
six consecutive years and awarded the MEC Municipal Excellence Award for the Best Implemented 
IDP for 3 consecutive years. 

2.3.2 ETHEKWINI MUNICIPALITY AUDIT AND RISK ASSURANCE SERVICES 

EThekwini Municipality Audit and Risk Assurance Services (herein after referred to as EMARAS), is 
an independent, objective assurance and consulting activity designed to add value and improve 
EThekwini Municipality's operations and assist the organisation accomplish its objectives by bringing 
a systematic, disciplined approach to evaluate and improve the effectiveness of governance, risk 
management, and control processes. The Chief Audit Executive, reports functionally to the Audit 
Committee and Administratively to City Manager. EMARAS is established in accordance with the 
requirements of the Municipal Finance Management Act (MFMA) No. 56 of 2003, the Municipal 
Systems Act No 32 of 2000, and espoused the King III Report on Corporate Governance. 


18 


19 

The vision of EMARAS is to make a discernible contribution to the achievement of eThekwini 
Municipality's strategic goals in ensuring that by 2030 eThekwini Municipality will enjoy the reputation 
of being Africa's most caring and liveable city where all citizens live in harmony. 

The Council is ultimately responsible for the total risk appetite; enterprise-wide as well as forming 
its own opinion on the effectiveness of the process, and overseeing the establishment of effective 
systems of internal financial controls, general Computer Controls and Compliance with laws and 
regulations. In order to reduce the level of residual risk and provide reasonable assurance that the 
Municipality's financial and non-financial objectives are achieved, EMARAS engages the City 
Manager and Deputy City Managers and reports to the Audit Committee for the City's Executive 
Management accountability and responsibility. 

RISK-BASED AUDITING 


It is the responsibility of Council, and the City Manager to undertake a risk assessment of the business 
of Council, establish and maintain an environment that fosters business ethics, risk management, 
control and governance. 

EMARAS applies a qualitative risk-based internal audit approach; premised on experience and founded 
on a detailed knowledge of the business of each auditable entity under review. This approach focuses 
primarily on evaluating the extent to which management has been successful in identifying critical 
inherent risks and implementing adequate and cost effective internal controls to manage these risks. 
The internal audit approach recognises the establishment of the macro/micro risk environment of 
Council, enterprise wide, taking into account portfolio view of risk (e.g. clusters; entities, 
departments). 

In pursuit of our primary mission to support the enhancement of the Corporate Governance ethos of 
eThekwini, EMARAS emphasizes value-adding through the application of high-level risk assurance and 
advisory services to areas of material risk. 

The internal audit coverage includes a high-level focus, which relates to the following, to the extent 
considered appropriate: 

• Independently identifying the risk profile of the auditee environment, and reviewing the processes 
and procedures in place to assist management to promptly identify new risks, or changes to 
existing risks; 

• Evaluating the extent to which management have identified their inherent risks, as well as the 
adequacy and cost-effectiveness of internal controls which management has implemented to 
manage these risks, in all of the significant financial and operational processes of the organisation; 

• Facilitating good practice in managing risks by evaluating compliance with relevant legislation, as 
well as with the various procedures, policies and regulations implemented by management to 
ensure that the internal control environment functions effectively on an on-going basis; 

• Reviewing which processes/systems/units within the organisation provide value-for-money, by 
evaluating the efficiency, economy and effectiveness of operational and managerial processes and 
procedures, and identifying areas of waste and inefficiency; 

• Providing recommendations for improvements in all of the above aspects; and 

• Deterring fraud through identifying and/or investigating incidents of known or suspected fraud. It 
is management's responsibility to prevent and detect fraud; EMARAS assists through its audit 
effort to guide management on the weaknesses of internal controls. 

The EMARAS model is premised on the knowledge of the Entire Enterprise and its Organisational 
Model driving the Business of EThekwini Municipality; taking into accounts COUNCIL MANDATE; 
regulatory and its Risk Universe to arrive at the AUDIT UNIVERSE. 


19 



SCOPE OF WORK 


20 


Based on the Audit Universe determined on Council Risk and Regulatory Universe Enterprise wide; 
EMARAS Focus Areas in the 2013/14 our achievement is reflected in table below. The additional 44 
audits conducted emanated from a request from oversight bodies such as the Audit Committee and 
Municipal Public Accounts Committee and / or executive management. Under the current year the 
unit has made a discernible effort to contribute to the strategic objective of a clean and accountable 
organisation; despite Capacity challenges; in certain areas. 


Audits Planned 

for the year 

Audits 

Completed 

the Year 

Percentage 

for achieved 

Additional audits 

Percentage 

230 

204 

89% 

44 

108% 


The Audit Focus areas for 2014/15 have significantly increased as we undertook an intensive and 
robust process to ensure a complete audit universe. The following, amongst others, was considered: 

• The strategic risk register for the City and its Entities 

• Prior year internal and external audit findings 

• Audit hotspots as identified by the profession 

• Issues as highlighted by SALGA and COGTA 
The Municipality's MACRO risk context 

Accordingly, our plan includes audits with the following focus: 

• Financial 

• Supply Chain Management 

• Operational Audits 

• Predetermined objectives / performance information management and reporting 

• Information, Communications and Technology 

• Compliance audits 

• Forensic/proactive Auditing inclusive of data analytics 

• Audit in the Built Environment starting at a reasonable scale and progressively ramping 
coverage base of programs and projects spend. 

The multi-year new resource plan is being implemented as agreed with the Audit Committee and City 
Manager, and good progress has been made. EMARAS will by 2015/16 have sufficient audit capacity 
to make a discernible impact in contributing to Council Vision and cultivating Good Corporate 
Governance. 

COMBINED ASSURANCE AND CONTINUOUS DIRECTOR DEVELOPMENT 

In line with the Council and City Managers Commitment, EMARAS has deployed phase 1, of integrated 
Assurance which focuses its attention on continuous audit monitoring and reporting regularly; with a 
view to ensure speedy resolution of Audit Queries both Internal Audit and conseguently Auditor 
General; with a total focus towards achievement of Clean Administrative Governance as a focal Audit 
Mandate. 

The Governance of risk is functioning effectively in pursuit of integrated assurance and re-definition of 
risk response roles, and co-ordination of audit effort deploying principles of Combined Assurance, and 
roles of risk in effective management of residual risk levels - Council wide. 


20 







Continuous Audit Logs (CAL) 


21 


In light of CAEs' concerns regarding the burden of compliance efforts, the scarcity of resources, and 
the need to maintain momentum on audit annual coverage plan, a combined strategy of continuous 
audit logs was introduced. Continuous Audit log encompasses the processes that all audit reported 
items are recorded in an integrated approach, where management / business take responsibility to 
ensure that the reported items are actually resolved in a reasonable period. On material bases, 
presentations are conducted to Executive's where rankings in terms of unresolved reported matters 
are highlighted. 

The unit completes a continuous audit log of all previously reported findings issued by both Internal 
and External Audit, tracking the progress towards resolution thereof. These are also reported to our 
Audit Committee on a quarterly basis. Progress of issues reported to EXCO is tracked in the same 
manner. This approach keeps management on their toes to put measures in place to ensure that the 
policies, procedures, and business processes are operating effectively. 

Management's use of continuous audit log procedures will satisfy the demands for assurance that 
control procedures are effective and that the information produced for decision-making is both 
relevant and reliable. 


Continuous Director Development Program 

EMARAS the 30*'^ July 2014 hosted a breakfast session seminar as part of a series of seminars which 
aims to cultivate the culture of good governance amongst pertinent stakeholders. The series also 
looks at new tools and approaches around supporting good governance, sharing best practices and 
implementable resolutions in ensuring clean administration and good governance in service delivery. 

The City Manager in his opening address mentioned the need for upholding the principles of good 
governance. He hoped that through the seminar the tone was set for a new way of doing business, 
and that the powerful and dynamic speakers would inspire all participants to build on the new 
foundation. 


The Honorable Councilor James Nxumalo in his Mayoral address welcomed all participants to the 
seminar, noting the timing of the learning event which coincided with the call from the President to 
heed corporate governance and improve service delivery. 



Advocate Ansie Ramalho Chief Executive Officer, Institute of 
Directors in Southern Africa mentioned overarching principles such 
as responsibility, accountability, fairness, transparency, discipline, 
independence and sustainability - all of which hinge on the first 
principle of responsibility. For effective governance, she argued that 
we needed to deal with the challenge of understanding what the distinctive roles of role players are, 
and ensuring that an effective independent oversight is played, and that there are synergies between 
the governance structures. The Audit Committee, she suggested was well positioned to play the role 
of connector between the various structures. 


Dr. Claudelle von Eck, CEO, Institute of Internal Auditors South 
Africa began her presentation by complimenting the leadership 
team for introducing an important conversation and urged that the 
seminar series continues. 


EMARAS is currently planning a second seminar which will include a wider audience as per the call by 
the Mayor. The Mayor indicated that these seminars will benefit the entire community of Councilors 
within the Municipality. The City Manager also recommended that these types of seminars be 
attended by various unit heads. The second session is planned to take place around the end of October 
/ early November. 


21 


22 


EThekwini Municipality Audit and Risk Assurance Services (EMARAS), as a practicing Internal Audit 
have adopted and subscribe to the IIA's International Standards for Professional Practice of Internal 
Auditing (Standards) and the Code of Ethics, and consequently committed to the Batho Principles. 
Therefore, Internal Audit given the onerous requirements both regulatory and best practice, protects 
as the Guardian of Governance and assist Council and the Audit Committee to hold accountable the 
stewardship (Executive Leadership) of council. 


2.3.3. CITY INTEGRITY AND INVESTIGATIONS 

The Municipality has an independent City Integrity and Investigations Unit, which is responsible for 
implementing its Fraud and Anti-Corruption policy. It deals with all cases of fraud and corruption 
reported internally or by external sources. It manages a hotline that receives information 
anonymously. 




Financial Year 
2012/2013 

Current Financial Year 
2013/2014 

1 

Number of cases received 

184 

283 

2 

Number of cases carried forward from prior 
year 

0 

125 

3 

Number of cases completed during that financial 
year 

59 

55 


Cases carried forward from prior year 
completed 


50 


Total cases completed in current year 

59 

105 

4 

TOTAL Matters currently under investigation as 
at 30 June 

125 

303 

5 

Number of dismissals emanating from 
Investigations 


9 

6 

Number of resignations emanating from 
investigations 


5 

7 

Number of arrests 


11 

8 

Criminal cases opened 


19 

9 

Number of entities blacklisted 


74 


2.3.4. COMMUNICATIONS 

The Communications Unit's mission is to promote co-operative governance, build civic pride, and 
connect stakeholder groups with the eThekwini Municipality through strategic communications and 
marketing, thus raising the brand profile of the Municipality and positioning it as a dynamic, 
responsive government, with a person-centered vision and service delivery ethos. 

During the 2013-14 financial year period, key priorities of the Unit were achieved, and day-to-day 
functions, such as marketing the municipality, producing publications, media liaison and maintaining 
the website, were carried out according to plan. 


22 


23 


Major highlights included: 

Developing and implementing the 20 Years of Democracy communication strategy, compiling 
the 20 Years of Democracy booklet to highlight the Municipality's service delivery milestones 
and hosting a series of celebrations by organising the Freedom Flame tour in collaboration 
with the Provincial Department of Co-operative Governance and Traditional Affairs and other 
Municipal departments; 

Disseminating information through a variety of communication tools, including the website, 
social media, Ezasegagasini Metro newspaper, the Workplace magazine, audio CDs and tapes, 
print and electronic media in order to communicate the Municipality's programmes; 
Developing and implementing the Municipality's Clean My City programme, which was 
launched in March by Mayor Cllr James Nxumalo. The Unit organised a massive education 
drive to educate residents about their responsibility to keep the City clean. Other stakeholders 
that were targeted include schools, street traders and business. The key issues the 
Municipality is tackling through this multi-disciplinary campaign includes by-law 
infringements, derelict buildings, litter, pollution and social ills; 

Publicity of the budget consultation process which saw the leadership and officials travel far 
and wide across the spectrum of the Municipality started off in the West region. As part of 
the budget consultation process with residents and other stakeholders in the eThekwini 
Municipality, Mayor Cllr James Nxumalo and members of the Executive Committee (EXCO) 
visited various regions across the Metro to identify the needs of the community and 
accelerate service delivery in the 2014/15 financial year. 

In communicating Municipal programmes, the Unit disseminated information through a 
variety of communication tools, including: the website, social media, Ezasegagasini Metro 
newspaper, the Workplace magazine, audio CDs and tapes, print and electronic media 
Generating 533 news releases to publicise information on Municipal decisions and 
programmes. The Unit also dealt with 407 media enquiries ranging from requests for 
comment, to requests for information on cases where complaints had gone to the media. The 
volume of media coverage achieved was noticeably immense; much of it was from the 
regional/provincial print media. 

Co-ordinating 11 media conferences to brief the media on Business fair. Festive Season 
Management Committee, Budget, Cornubia, Cato Crest, Tongaat Mall, Water Shortage, 
Grammy Award-winning Ladysmith Black Mambazo, Water Pipeline vandalism. Cutting Edge, 
Top Gear, Durban Under 19 international football tournament. 

Produced daily media monitoring reports which are circulated to senior management to 
inform them about media coverage on the Municipality and their Units. 


23 



24 


The chart below shows media coverage in the period under review and breakdown of the tone. 



The web is the Municipality's main online communication tool. During the period under 
review, there were some approximately five million hits on the municipality's homepage 
during 2013/14. Usage statistic increased from 1 359, 594 page views in the previous reporting 
period to 4 711, 415. Prominent posting included Committee minutes. Committee decisions. 
Budget, Annual report, IDP, Tenders, news and statements, publications, statements, 
Ezasegagasini Metro and announcements. 

During the reporting period, the department printed 24 editions of Ezasegagasini Metro in 
isiZulu and English, with a total print of 9.6 million copies. In addition to being produced as 
newsprint, Ezasegagasini Metro is made available online and CDs and tapes. 

Advertorials promoting the City programmes on the following niche publications: Green 
journal. Service leadership, KZN Top business. Service delivery. Business in Durban, 
Opportunity, Sawubona, Grazia, Play magazine, KZN Industrial & Business News and Earth, 
Pan African Parliament and Achiever. 

The department produced a four-page supplement in the following topics: 2014-15 Draft 
Budget, 20 Years of Democracy, E-recruitment, PRC Month, Top Gear, Transport Month, 
Business Fair, Sustainable Living Exhibition and Festive Season Plan. 

Coordinated monthly talk shows on Ukhozi FM, Lotus FM and Gagasi FM. Additional air time 
was bought from community radio stations. 

2.3.5. SIZAKALA CENTRES (REGIONAL CENTRES) 

According to studies by the CISR (2008) and the Rural ABM (2010), on access modeling and provision 
of basic services in the rural areas of the eThekwini Municipal areas: 

• Some areas in the South (Umlazi South, Folweni and Magabheni), the North 
(UMzinyathi/Qadi, parts of Inanda, Newlands and Overport), and the West (Malvern 
and Kwanyuswa) are unserved. 

• The service packages offered, particularly in rural centres are not aligned to the 
required standard and baseline service levels for basic Sizakala Centre i.e. Municipal 
services such as electricity, water, rates, etc., enquiries, services, facility bookings and 
information are not available in these centres. 

In response to these findings, a dual phased programme of developing new centres for the un-served 
areas and alignment of services in rural areas was initiated. The first phase for the establishment of 
Centres as outlined in Table. 1 by 2014/15 and 2015/16 was approved by the EXCO and is awaiting 
capital funding. Processes are in place for the alignment of services with the needs of the rural 
residents. 


24 


Table New Centres 


25 


Centre Centre capacity 


KwaNyuswa 

2 

100 000 

Magabheni 

98 

100 000 

Qadi 

3 

100 000 

KwaMnyandu 

76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 

86, 87, 88 and 89 

500 000 

Ohiange 

44, 45, 53, 54, 55, 56 and 57 

100 000 

Folweni 

97 

100 000 

Malvern 

63 

100 000 


2.3.6. COMMUNITY PARTICIPATION 

The Unit trained Ward Committees on the Skills Programme that is in line with National Qualification 
on NQF2. Community Mobilisers were also trained on minute-taking to enable them to provide them 
administrative support to Ward Committees for their effective functioning. One hundred staff 
members were also trained on Community Based Planning Implementation tools in preparation for 
the development of Ward Based Plans. Soup kitchens were increased from eighteen to thirty six sites 
to feed the needy. Support in a form of loud hailing, venue bookings, fruits, pamphlets distribution, 
poster erection, etc was given to Councillors in their outreach programmes. Programmes to assist 
vulnerable groups such as the aged, youth, children, women and the disabled were also implemented. 
Fifty seven NGO's and NPO's were assisted through Grant in Aid Programme. EThekwini Strategic 
Integrated Projects Engagement Forum was established. 

2.3.7. MUNICIPAL INSTITUTE OF LEARNING (MILE) 

The Municipal Institute of Learning (MILE) is a knowledge management initiative of the eThekwini 
Municipality that will position Durban as a learning city. Its programmes aim to enhance the capacity 
of local government practitioners across South Africa and the African continent. Its mandate also 
includes providing municipal technical support to selected municipalities, collaborating with local 
universities and fostering strategic national and international learning partnerships. 

During the past financial year (2013/2014) MILE has hosted four Management Seminars, two 
Councillor Seminars, seven Master Classes, six peer learning exchanges, one major international 
learning exchange, three internal Communities of Practice, two Built Environment Seminar in 
partnership with Durban's tertiary institutions, the city's second eThekwini-University Research 
Symposium, and has hosted an unprecedented ten Municipal Technical Support initiatives for internal 
eThekwini Municipality departments, local municipalities as well as African countries such as Namibia 
and Malawi. 

Some of the highlights included the Public Spaces International Learning Exchange and the eThekwini 
University Research Symposium. 


25 



26 


The Municipality in partnership United Cities and Local Governments, UN Habitat and the Department 
of Cooperative Governance and Traditional Affairs hosted an international learning exchange on 
public spaces that challenges the way open public spaces are planned and utilised. About 200 
municipal practitioners from cities around the world gathered to share knowledge and experience and 
to learn how to creatively make urban public spaces more people centred and vibrant. 

Thirty research papers were presented at the City's second research symposium, hosted by MILE in 
partnership with the Durban University of Technology (DUT). The event was fully supported by the 
Mangosuthu University of Technology (MUT), University of KwaZulu-Natal (UKZN) and the National 
Research Foundation (NRF). Over 280 academics and city officials attended the event with the 
overarching theme being 'Towards Sustainable Livelihoods' which allowed for a range of research 
inputs and opportunities to reflect on issues and challenges facing eThekwini's urban as well as the 
expansive rural and traditional areas. 

The MILE success story is due to its approach of strategically partnering with key funders and agencies 
that fund their programs. No additional costs to the ratepayer base are incurred for flights, 
accommodation, etc. for any of its capacity enhancement programs. For more information, please 
visit our website at www.mile.org.za . 


2.4. PERFORMANCE MONITORING AND EVALUATION 

The Performance Monitoring and Evaluation Unit is responsible for the continuous monitoring, and 
periodic measurement as well as review of the performance of the organisation. This is done by 
measuring and monitoring the implementation of the IDP and the Strategy of the Organisation; in 
order to ensure an enabling environment that will allow staff and the organisation to perform at its 
highest level. The Performance Monitoring and Evaluation Unit, reports on the municipality's 
implementation of its strategies, as detailed in its IDP via the Organisational Scorecard and the Service 
Delivery and Budget Implementation Plan (SDBIP) reports, which detail the targets and actual 
achievements for each quarter. 

The Scorecard is audited quarterly by Internal Audit and is presented to the Audit Committee, where 
Senior Management is required to address the concerns raised by the committee. Audits of 
Predetermined Key Performance Indicators (KPIs) linked to the Strategic Focus Areas (SFAs) in the IDP 
are also done periodically by the Internal Audit Unit. The Service Delivery and Budget Implementation 
Plan (SDBIP) is the operational tool used to determine whether project targets for the various 
programmes which are linked to the Organisational Scorecard, are achieved. The Organisational 
Performance Information is set out in the Organisational Performance Scorecard. 


PERFORMANCE 

The Key Performance Indicator of the Unit on the Organisational scorecard is the achievement of an 
unqualified audit report on performance information. 

Continuous monitoring and evaluation of the legislated performance information for the organisation 
and its entities, is undertaken. The KPI Definition Project was implemented during the year, with the 
aim of collecting detailed information on the Key Performance Indicators on the Organisational 
Scorecard. This provided an opportunity for the PME Unit to gain greater understanding of all KPIs on 
the scorecard, and for the KPI Owners to convey challenges and anticipated risks to the PME Unit, in 
order to enhance their understanding of their operating environments. Further, project plans were 
requested from the projects and sub-project managers. These project plans assisted in understanding 
the targets which have been set for the SDBIP projects, and provide information on the activities that 
would need to be embarked on in order to meet the targets set. This assists the PME Unit in evaluating 


26 


'll 

the performance of the project managers on specific projects and in evaluating the evidence provided 
upon quarterly reporting. Great emphasis was placed on ensuring a link between the Scorecard and 
the Service Delivery Budget Implementation Plan. Cross cutting projects have also been included on 
the organisational scorecard. 

The Individual Performance Management Section ensured that all Senior Managerment Performance 
plans and assessments were received and submitted to relevant Provincial and National departments. 
Further, the Unit ensured the submission of Disclosures of Interest by all staff, as well as managed the 
process of gift registers for all gifts received by all staff. 

The Unit is also responsible for compiling the Municipality's Annual Report. The 2013 /2014 financial 
year saw the completion of the 2012/2013 Annual Report. This resulted in the achievement of 100% 
of all tasks involved in this Annual Report process. The report was completed and posted on the 
website for public access and viewing. The oversight report prepared by the Municipal Public 
Accounts Committee of the Municipality recommended that Council approve the Annual Report of 
the eThekwini Municipality for the 2012/2013 Financial Year without reservations, which was duly 
done. 

The Unit has also seen the need to monitor and evaluate identified operational areas of municipal 
service delivery, and continuous review and enhancement of developed applications. Although these 
have not resulted in 100% achievement rate of the planned tasks for the 2013/2014 financial year, 
due to several challenges. the Unit has embarked on evaluation projects to ascertain the problems in 
this regard so as to come up with workable solutions to ensure effective and efficient operations of 
these projects. 

CHALLENGES 

The achievement of effective and efficient service delivery relies on collaborative efforts between 
different Units and departments within the organisation and the citizenry within our jurisdiction. A 
number of interventions have been made to ensure that this is effective. A number of adverts have 
been placed on different newspapers inviting the public to comment on the Annual Report. However, 
minimal response is received from the public. This calls for the need to develop more effective public 
participation strategies. It also places a challenge on the public to be more active in the issues 
affecting their well being. 

Electronic systems have been put in place in order to ensure efficient quarterly reporting by the 
different stakeholders. There exists a need to continuously maintain and upgrade the system to ensure 
timeous reporting by all stakeholders. However, there is a lack of resources. The Performance 
Monitoring and Evaluation Unit continues to engage in discussions to ensure improvements in this 
regard. 

The Unit is working on legislated dates, in terms of the scorecard and SDBIP reporting. There has been 
lack of support from line management in ensuring timeous quarterly capture on their SDBIP projects, 
and KPIs on the Scorecard. This has proven to be a huge challenge as it negatively impacts on the 
success rate figures on the Scorecard and SDBIP. However, continued efforts are being made to 
ameliorate this situation. 

SUSTAINABILITY 

The Performance Monitoring and Evaluation Unit has placed more emphasis on Performance 
Evaluations. This is so as to source more meaningful information on the performance of the 
organisation. Information on challenges and areas of improvement will be identified during these 
evaluations. This will assist in providing meaningful information during strategic planning and in the 
formulation of reasonable legislative measures to ameliorate any prevailing challenges which would 
negatively impact on the achievement of efficient service delivery. 


27 



28 

The Unit has adopted the Municipal Performance Assessment Tool in order to 'provide holistic, 
integrated information, on the institutional performance of municipalities, and provide a 
comprehensive and robust evidence base for providing tailored support and/ or intervention 
measures to municipalities in a coordinated and differentiated manner.'^ 

Further, quarterly feedback session are held with different stakeholders involved in the Performance 
Monitoring and Evaluation process, in order to strengthen relations and highlight their Unit or 
Departmental performance during the specific quarters of the financial year. 

The 2013 / 2014 Performance Scorecard is attached below. 


'The Department of Performance Monitoring and Evaluation.Municipal Assessment Tool. Trail Version 1.3 


28 




30 



eThekwini Municipality 

Organisational Performance Scorecard 

2013/2014 

SCORECARD REPORT AS AT 30 June 2014 


SUMMARY OFPLANS 


Plan number 

Total number of 

KPIs 

KPIs 

achieved 

KPIs achieved within 
tolerance 

KPIs not achieved 

Achievement rate (%) 
with tolerance 

Achievement rate (%) 
without tolerance 


© 

© 

@ 



1 

8 

5 

2 

1 

87.50% 

62.50% 

2 

12 

5 

3 

4 

66.67% 

41.67% 

3 

32 

17 

4 

11 

65.63% 

53.13% 

4 

21 

17 

1 

3 

85.71% 

80.95% 

5 

24 

14 

0 

10 

58.33% 

58.33% 

6 

7 

6 

0 

1 

85.71% 

85.71% 

7 

13 

7 

2 

4 

69.23% 

53.85% 

8 

17 

15 

1 

1 

94.12% 

88.24% 


134 

86 

13 

35 

73.88% 

64.18% 


Tolerence: Approved by council to be 5 % and calculated using variances. The Tolerence Variance therefore is the difference between the Target and the Actual 
expressed as a percentage. 

* KPI Variance percentages are calculated as follows: ((Target value-Actual Value)/Target Value)*100 

* Variance percentages are only indicated and calculated for targets that were not achieved. 

* Variance percentages are also calculated for those targets which are expressed as a percentage, but where the target is less than 100% 


Plan name 

Total number of KPIs 

KPIs achieved 

KPIs not 

achieved 

Achievement rate (%) 
with tolerance 

Ushaka Marine World 

36 

24 

11 

66.67% 

ICC 

16 

15 

1 

93.75% 


*The detailed scorecard for Ushaka Marine World and the International Convention Centre can be found in the annual reports of the respective entities. 


29 






31 


Plan 1 :Develop and Sustain our Spatial, Natural and Built Environment 


Plan Owner: Musa Mbhele 


Index 

KPI Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year Target 
2016/2017 

Annual Target 
2013/2014 

Quarter 4 
Actual as at 

June 

2013/2014 

Actual 

June 

2013/20 

14 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken 
to Improve 
Performance 

1.1 

Develop, 
update and 
review 

Planning tools 
for managing 
land use and 
development 

100% 

% 

SDF/SDP 

Annual review 

SDF&SDP 

annual review 
complete - 
100% 

100 

100 

© 




1.2 

% of Building 
Plans finalised 

within 
statutory 
timeframes - 
30 days for 
applications 
less than 

500m2 and 60 
days for 
applications 
greater than 
500m2 

97% 

% 

100% of all 
building 
applications 
meet statutory 
timeframes 

100% of all 

applications 

finalised 

within 
statutory 
timeframe of 

30 days for 
applications 
less than 

500m2 and 60 
days for 
applications 
greater than 
500m2 

100.00 

100.00 

© 




1.3 

Production of 

the Annual 

State of 
Biodiversity 
(SOB) Report 

100% 

% 

Produce SOB 
Report 

Produce SOB 
Report -100% 

100.00 

100.00 

© 





30 


32 


Plan 1 :Develop and Sustain our Spatial, Natural and Built Environment 


Plan Owner: Musa Mbhele 


Index 

KPI Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year Target 
2016/2017 

Annual Target 
2013/2014 

Quarter 4 
Actual as at 

June 

2013/2014 

Actual 

June 

2013/20 

14 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken 
to Improve 
Performance 

1.4 

Implement a 

Municipal 

Climate 

Protection 

Programme 

100% 

% 

Development 
of a strategic 
implementatio 
n plan for the 
adaptation 
component of 
the Durban 

Climate 

Change 

Strategy. 

Develop the 
Durban 

Climate 

Change 

Strategy - 
100% 

100.00 

100.00 

© 




1.5 

Percentage of 
referred 
(stage 2) NBR 
(National 
Building Regs) 
and 

PDA(Planning 
and Dev AppI) 
cases, 
prosecuted 
within 21 days 

No 

baseline 

% 

100% of cases 
prosecuted 
within 14 days 

100% of cases 
prosecuted 
within 21 days 

100.00 

100.00 

© 





31 


33 


Plan 1 :Develop and Sustain our Spatial, Natural and Built Environment 


Plan Owner: Musa Mbhele 


Index 

KPI Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year Target 
2016/2017 

Annual Target 
2013/2014 

Quarter 4 
Actual as at 

June 

2013/2014 

Actual 

June 

2013/20 

14 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken 
to Improve 
Performance 

1.6 

Implement 
projects to 
enhance 

control over 
signage and 
advertising. 

92.20% 

% 

100% 

100% 

implementatio 
n of SDBIP 
projects 

100.00 

95.00 

© 

Achieved 

-5% 

variance 

Non 

appointment of 
a service 
provider for taxi 
rank branding. 

Advertising 
of bus 

shelter 

tender and 
Appointment 
of service 
provider for 
Taxi rank 
branding 

1.7 

Implement 
projects to 
enhance 

service 

delivery 

within 

building 

Inspectorate. 

100% 

% 

100% 

100% 

implementatio 
n of SDBIP 
projects 

100.00 

99.60 

© 

Achieved 

- 0.4% 

variance 

Consequential 
vacancies not 
filled - shortage 
of staff -This is 
ongoing 

We are 
continuously 
in a process 
of 

recruitment 


32 


34 


Plan 1 :Develop and Sustain our Spatial, Natural and Built Environment 


Plan Owner: Musa Mbhele 


Index 

KPI Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year Target 
2016/2017 

Annual Target 
2013/2014 

Quarter 4 
Actual as at 

June 

2013/2014 

Actual 

June 

2013/20 

14 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken 
to Improve 
Performance 

1.8 

Compliance 

with the 

Integrated 

Coastal 

Management 

Act 2009 - 

Municipality 

Coastal 

Management 

Programme 

New KPI 

- No 

Baseline. 

% 

100 

Municipal 

Coastal 

programme 
lodged with 

MEC for 
approval: A 
single 

document for 
municipal 
committee 
approval - 
100% 

80% 

80% 

@ 

Not 

achieved 

20% 

variance 

Atatus 

update:Timeline 
s to be revised as 

in the last 10 
days the 

National Coastal 
Management 
Programme has 
been published 
for comments 
there is likely to 
be a delay in the 
implementation 
of this until the 

second half of 
this fin year as 
the responsible 
person is now 
Acting Head of 
Engineering 



33 


35 


Plan 2 :Developing a Prosperous, Diverse Economy and Employment Creation 


Plan Owner: Musa Mbhele 


Index 

KPI Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as 
at June 
2013/2014 

Actual 

June 

2013/20 

14 

Indicator 

Achieved 
within 5% 
tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

2.1 

Lobbying and 
Provision of 
Strategic 

Support to the 
City Leadership 
as outlined via 

the various 
projects in the 
SDBIPfor 
2013/14 

New 

KPI- No 

Baseline 

% 

An 

Implementa 
ble Economic 

Framework 

Plan for the 
City 

100% 

Achieveme 

nt of 4 

SDBIP 

Targets 

during 

2013/14 

100 

92.50 

© 

Not 

achieved - 

7.5% 

variance 

Outstanding issues 
still to be discussed 

and finalised with 
Province; 2 Tenders 
received when 

advertised the first 

time. These were 

evaluated and 

rendered non- 
responsive. Bid 
Evaluation 
approved this and a 
New Bid Spec 
report has been 
generated for re 
advertisement; 

To schedule further 

discussions with 

KZN Provincial 
Government; Re 
advertisement will 
take place across 
some national 
newspapers and 
not limited to 

eThekwini so that 
we can target a 
wider group of 
firms for this 
contract; 

2.2 

Provision of 

Economic 
Intelligence 
and a Strategic 
Economic 

Framework as 

outlined in the 
SDBIP 2013/14 

New 

KPI- No 

Baseline 

% 

An efficient 

and user- 

friendly 

economic 

database for 

the 

Municipality 
and public 

100% 

Achieveme 

nt of 18 

SDBIP 

Targets 

during 

2013/14 

100 

99.55 

© 

Achieved 

- 0.45% 

variance 

Difficulty in 
obtaining data 
from various 

sources both in 
internally and with 
private sector 

As some of the 
data from private 
sector was 
sensitive in nature, 
meetings to be 
held to agree on 
what info may be 
utilized 


34 


36 


Plan 2 :Developing a Prosperous, Diverse Economy and Employment Creation 


Plan Owner: Musa Mbhele 


Index 

KPI Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as 
at June 
2013/2014 

Actual 

June 

2013/20 

14 

Indicator 

Achieved 
within 5% 
tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

2.3 

Special- 

Purpose 

Vehicle to 
support, 
market and 
promote the 
local film- and 
digital media 
Industry 
through the 
implementatio 
n of 6 projects 
as outlined in 

the SDBIP for 
2013/14 

New 

KPI- No 

Baseline 

% 

Completion 
of 100% of 
the projects 
as outlined 

in the SDBIP 

100% 

Achieveme 

nt of 6 

SDBIP 

Targets 

during 

2013/2014 

100 

98.33 

© 

Achieved 

- 1.67% 

variance 

Delays in 

implementing pre- 
production phase 
of programme in 

Q4 due to ongoing 

stakeholder 

engagements. 

Stakeholder 
engagements now 
finalised, 
agreements in 
place, pre- 
production to 
commence in Q1 

14 15 

2.4 

The number of 
jobs created 
through 
municipality's 
local economic 
development 
initiatives 
including 
capital projects 

12247 - 

amende 

d 

Baseline 

Number 

81916 

15095 

15096 

(Targets 

calculated 

using 

budgeted 

capital 

spend. 

Rounding 

difference 

on targets) 

17270 

© 


Due to a dramatic 
increase in capital 
spend in Quarter 4. 
This increase in 
spend was from 
just over R1 billion 
in Quarter 3 to 
over R2 billion in 
Quarter 4. 



35 


37 


Plan 2 :Developing a Prosperous, Diverse Economy and Employment Creation 


Plan Owner: Musa Mbhele 


Index 

KPI Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as 
at June 
2013/2014 

Actual 

June 

2013/20 

14 

Indicator 

Achieved 
within 5% 
tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

2.5 

Special- 

Purpose 

Vehicle to drive 

Durban 

Investment 

Facilitation and 

Promotion to 

local and 
foreign 

Business 
through the 
implementatio 
n of a set of 
projects as 
outlined in the 

SDBIPfor 

2013/14 

New 

KPI- No 

Baseline 

% 

100% 

Achievement 

of the 

Projects 
outlined in 

theSDBIP 

100% 

Achieveme 

nt of 16 

SDBIP 

Targets 

during 

2013/14 

95 

(Annual 
target of 
100% 

means 

100% of 
targets in 
SDBIP are 

achieved. 

The 

average 
target of 
all related 

SDBIP 
projects 
for Q4 is 
95%) 

95% 

© 





36 


38 


Plan 2 :Developing a Prosperous, Diverse Economy and Employment Creation 


Plan Owner: Musa Mbhele 


Index 

KPI Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as 
at June 
2013/2014 

Actual 

June 

2013/20 

14 

Indicator 

Achieved 
within 5% 
tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

2.6 

Facilitating 

Nodal 

Development 
through the 
implementatio 
n of specific 
capital projects 
in the 

eThekwini 

Municipal 

region 

New 

KPI- No 

Baseline 

% 

Completion 
of 100% of 
the projects 
as outlined 

in the SDBIP 

100% 

achieveme 

nt of the 

SDBIP 

Targets 

during 

2013/14 

100 

86.20 

© 

Not 

achieved - 

13.80% 

variance 

Contract 

cancellation; Target 
incorrectly reflecting 
as 100%, was always 
programmed to only 
be complete in 

14/15; Changes to 
design required by 
DOT, required a 
retender process; 

Delay due to 
opposition lodged by 
property owner for 
servitude 

registration; delay in 
receiving consensus 
dates from 
community groups 
for the final 
presentation to 
community; Stage 3 
detailed designs not 
finliased for 

Polokwane Transit 
Camp; NDPG 
withdrew funds to 

relocate Roads 

Depot, in order for 
land to be vacant . 

SCM to appoint 
qualified and 
experienced 
contractors; Get 

DOT approval 
before going to 
tender; Ensuring 
realistic annual 
targets are set in 
the first instance; 
Continuous Follow- 
ups undertaken- 
dates have been 

received for end 

July 2014; 

Finalising design 
and build terms of 
reference; report 
to ECOD requesting 
funds in the MTERF 

etc 


37 


39 


Plan 2 :Developing a Prosperous, Diverse Economy and Employment Creation 


Plan Owner: Musa Mbhele 


Index 

KPI Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as 
at June 
2013/2014 

Actual 

June 

2013/20 

14 

Indicator 

Achieved 
within 5% 
tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

2.7 

Implement a 
set of key 
Strategic 

Projects for 

2013 and 

Beyond in the 
eThekwini 
Municipal 
region as 
outlined in the 

SDBIPfor 

2013/14 

New 

KPI- No 

Baseline 

% 

Realisation 

of 

sustainable 

benefits 

from 

Strategic 
Projects in 
selected 

areas in the 
City 

100% 

Achieveme 

nt of 8 

SDBIP 

Targets 

during 

2013/14 

100 

74.13 

© 

Not 

achieved - 

25.87% 

variance 

Contract price 
lower than 
estimate, No 
identified project. 

Improved 

estimating, 

Identified projects 
will be undertaken 

in the next financial 

year. 

2.8 

An increase in 

the number of 

SMMEs 
exposed to 
various 

markets in the 

main-stream 
economy both 
local and 

national as 

outlined in the 

SDBIPfor 

2013/14 

New 

KPI- No 

Baseline 

% 

An increased 

number of 

SMMEs 
capacitated 
and exposed 
to various 

markets in 

the local and 

national 

economy 

100% 

Achieveme 

nt of 16 

SDBIP 

Targets 

during 

2013/2014 

100 

100.00 

© 





38 


40 


Plan 2 :Developing a Prosperous, Diverse Economy and Employment Creation 


Plan Owner: Musa Mbhele 


Index 

KPI Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as 
at June 
2013/2014 

Actual 

June 

2013/20 

14 

Indicator 

Achieved 
within 5% 
tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

2.9 

Managing the 
Informal 
Economy by 
providing an 
enabling 
platform for 
the local 

informal sector 
by 

implementing a 
set of 

operational and 
management 
initiatives as 

outlined in the 

SDBIPfor 

2013/14 

New 

KPI- No 

Baseline 

% 

An efficient, 
enabling 
platform for 
the Informal 
Economy to 
function in 

the 

municipal 

region 

100% 

Achieveme 

nt of 1 

SDBIP 

Target 

during 

2013/14 

100 

100.00 

© 





39 


41 


Plan 2 :Developing a Prosperous, Diverse Economy and Employment Creation 


Plan Owner: Musa Mbhele 


Index 

KPI Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as 
at June 
2013/2014 

Actual 

June 

2013/20 

14 

Indicator 

Achieved 
within 5% 
tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

2.10 

Support the 
Tourism Sector 
through the 
creation of 
global 
awareness, 
partnership- 
building and an 
increase of 
spending and 
visitor numbers 

in the 

eThekwini 
Municipal 
region, as 
outlined in the 

SDBIPfor 

2013/14 

New 

KPI- No 

Baseline 

% 

100% 

Achievement 

of identified 
projects in 
the tourism 

and related 

sectors as 

outlined in 

theSDBIP 

100% 

Achieveme 

nt of 5 

SDBIP 

Targets 

during 

2013/2014 

100 

100.00 

© 





40 


42 


Plan 2 :Developing a Prosperous, Diverse Economy and Employment Creation 


Plan Owner: Musa Mbhele 


Index 

KPI Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as 
at June 
2013/2014 

Actual 

June 

2013/20 

14 

Indicator 

Achieved 
within 5% 
tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

2.11 

Support and 
Grow the Fresh 

Produce 

Industry by 
providing an 
enabling 
platform for 
businesses in 

the Fresh 

Produce sector 

as outlined in 

the SDBIP for 
2013/14 

New 

KPI- No 

Baseline 

% 

An efficient, 
enabling 
platform for 
businesses in 

the Fresh 

Produce 

industry 

100% 

Achieveme 

nt of 11 

SDBIP 

Targets 

during 

2013/14 

100 

92.67 

© 

Not 

achieved - 

7.33% 

variance 

Project did not 
commence due to 

the contractor 
withdrawing his 
services subsequent 
to the SCM process 
being finalised and 
letter of award being 
issued; Six market 
agents, collectively as 
a group withdrew 
from market 
managements' 
consultative meeting 
citing lack of 
readiness and 
demanding a 
prepared draft. 

Process stalled i.e. in 
terms of obtaining a 
legal opinion, and the 
subsequent signing- 
off of the said SOP; 
Delayed infra red 
testing report 
identified 

unanticipated repairs 
to the Ripening 

rooms. 

Project has been 
retained to be 

carried in the 
2014/2015 
financial year; 
Consultative 
meeting with 
stakeholders, the 
six market agents, 
to be immediately 
re-scheduled, with 
a draft presented 
prior to the 
engagement/consu 
Itative process; The 
repairs to the 
rooms were fully 
effected during 

May and June 14. 

The rooms are now 
at an acceptable 
level to commence 
handover process. 


41 


43 


Plan 2 :Developing a Prosperous, Diverse Economy and Employment Creation 


Plan Owner: Musa Mbhele 


Index 

KPI Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as 
at June 
2013/2014 

Actual 

June 

2013/20 

14 

Indicator 

Achieved 
within 5% 
tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

2.12 

Stimulate key 
sectors that 
promote 
economic 
growth and 
create jobs 
through 
providing 
support for 
prioritized 
sectors in the 

eThekwini 

Municipal 

region 

New 

KPI- No 

Baseline 

% 

Industrial 

Developmen 

t Programme 

to achieve a 

synergistic 

relationship 

between 

local 

economic 
development 
and the 

identified 

sectors 

100% 

Achieveme 

nt of 19 

SDBIP 

Targets 

during 

2013/14 

100 

98.64 

© 

Achieved 

- 1.36% 

variance 

The building plans 
were at the 

Planning 

Department for 
Smooths before 
approval. This has 
seriously 

compromised the 
Planned rollout of 
this project by 
6months; The is a 
delays in signing of 
committee report 
by City 

Management; 

The request for 
urgency on this 
plans approval 
came from HOD 
Planning to 

Planning 

Department 
through DH 

Projects 

discussions. 

Nothing further can 
be done; Once the 
report is signed 
only then the 
project can take 
off; 


42 


44 



Plan 3 :Creating a Quality Living Environment 


Plan Owner: Sibusiso Sit 

hole 

Index 

KPI 

Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/201 

4 

Quarter 4 
Target as 
at June 
2013/201 

4 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

3.1 

The percentage 
of households 

with access to a 

basic level of 
electricity 

69.07 

% 

71.41 

70.67 

70.67 

70.95 

© 


Target achieved 

Electrification of 

Informal 

Settlements 

3.2 

The percentage 
of households 

with access to a 

basic level of 

Solid Waste 

100.00 

% 

100.00 

100 

100 

100.00 

© 




3.3 

The percentage 
of households 

with access to a 

basic level of 

Water 

92.44 

% 

93.17 

92.93 

92.93 

92.71 

© 

Achieved 

- 0.23% 

variance 

Informal 

Settlements: 

Water Field 
surveys of 
representative 
areas are showing 
that many 
households 

identified in the 

GIS as 'not 

serviced' have an 
illegal connection. 

This is sensitive 

issue which links 
closely with "non 
revenue water ", 
but one which is 
not readily resolved 
via an 'engineering 
intervention ' 

alone. Political and 
Social support is 
required. 

Due to be discussed 

at the DCMs Forum 

and raised with the 

Chairman of the 

relevant 

Committee 


43 


45 



Plan 3 :Creating a Quality Living Environment 


Plan Owner: Sibusiso Sit 

hole 

Index 

KPI 

Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/201 

4 

Quarter 4 
Target as 
at June 
2013/201 

4 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

3.4 

The percentage 
of households 

with access to a 

basic level of 

Sanitation 

76.92 

% 

85.83 

80.66 

80.66 

80.73 

© 


Target for 
provision of 
communal 

ablution blocks 

met. 


3.5 

The percentage 
of estimated 
indigent 

households with 

access to free 

basic services: 
Electricity 

17.11 

% 

17.389 

15.685 

15.685 

14.480 

@ 

Not 

achieved - 

7.68% 

variance 

Possible winter 

coldness is 
forcing Indigents 
to purchase more 
electricity and 
being excluded 
from FBE 

Created new FBE 
pamphlets to 
attempt to 
increase the 
understanding of 
FBE 

3.6 

100% of 

estimated 

indigent 

households with 

access to a 

refuse removal 

service once a 

week. 

100 

% 

100 

100.00 

100 

100.00 

/• 




3.7 

The percentage 
of estimated 
indigent 

households with 

access to free 

87.75 

% 

88.91 

88.51 

88.51 

88.16 

© 

Achieved 

0.40% 

variance 

Informal 

Settlements: 

Water. Field 
surveys of 
representative 
areas are showing 

This is sensitive 

issue which links 
closely with "non 
revenue water ", 
but one which is 
not readily resolved 


44 


46 



Plan 3 :Creating a Quality Living Environment 


Plan Owner: Sibusiso Sit 

hole 

Index 

KPI 

Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/201 

4 

Quarter 4 
Target as 
at June 
2013/201 

4 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 


basic services: 

Water 









that many 
households 

identified in the 

GIS as 'not 

serviced' have an 
illegal connection. 

via an 'engineering 
intervention ' 

alone. Political and 
Social support is 
required. 

Due to be discussed 

at the DCMs Forum 

and raised with the 

Chairman of the 

relevant 

Committee 

3.8 

The percentage 
of estimated 
indigent 

households with 

access to free 

basic services: 

Sanitation 

54.31 

% 

68.61 

60.31 

60.31 

60.42 

© 


Target for 
provision of 
communal 

ablution blocks 

met. 



45 


47 




Plan 3 :Creating a Quality Living Environment 










Plan Owner: Sibusiso Sit 

hole 









Index 

KPI 

Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/201 

4 

Quarter 4 
Target as 
at June 
2013/201 

4 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

3.9 

The number of 

consumer units 
provided with 
access to a FREE 

basic level of 
SANITATION by 
means of a UD 
toilet, an 
existing VIP or, 
for informal 
settlements, by 
means of a 
toilet/ablution 
block within 

200m 

8991 

Number 

92 275 

35 351 

35351 

35977.00 

© 


Target for 
provision of 
communal 

ablution blocks 

met. 


3.10 

The number of 

consumer units 
provided with 
access to a FREE 

basic level of 
potable WATER 
either by means 
of an indiv hh 
yard supply 
(ground tank or 
metered flow 

2060 

Number 

8902 

4578 

4578 

2539.00 

@ 

Not 

achieved - 

44.53% 

variance 

Informal 

Settlements: 

Water. Field 
surveys of 
representative 
areas are showing 
that many 
households 

identified in the 

GIS as 'not 

This is sensitive 

issue which links 
closely with "non 
revenue water ", 
but one which is 
not readily resolved 
via an 'engineering 
intervention ' 

alone. Political and 
Social support is 
required. 


46 


48 



Plan 3 :Creating a Quality Living Environment 


Plan Owner: Sibusiso Sit 

hole 

Index 

KPI 

Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/201 

4 

Quarter 4 
Target as 
at June 
2013/201 

4 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 


limiter 

connected to a 
yard tap) or, for 
informal 
settlements, by 
a standpipe 
within 200m 









serviced' have an 
illegal connection. 

Due to be discussed 

at the DCMs Forum 

and raised with the 

Chairman of the 

relevant 

Committee 

3.11 

The number of 

consumer units 
provided with 
new prepaid 
ELECTRICITY 

connections 
captured 
including 
housing and 
rural consumer 

units 

9986.00 

Number 

40000 

12300 

12300 

14770.00 

© 


Demand Driven; 
Dependant upon 
customer 
payment, hence 

over- 

achievement. 



47 


49 



Plan 3 :Creating a Quality Living Environment 


Plan Owner: Sibusiso Sit 

hole 

Index 

KPI 

Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/201 

4 

Quarter 4 
Target as 
at June 
2013/201 

4 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

3.12 

The number of 

consumer units 
provided with 

new 

conventional 

ELECTRICITY 

connections 

captured. 

1069 

Number 

5000 

700 

700 

813.00 

© 


Demand driven; 
Connections 
dependant upon 
customers 
meeting 
requirements, 
hence over- 
achievement. 


3.13 

The % of 

additional 

consumer units 

(completed by 

private 

developers) 

provided with a 

once/week, 

kerb-side 

REFUSE removal 

service. 

362 year 
to date 

% 

100% 

100% 

100 % 

100.00 

© 


In the Northern 
Region there is a 
Metro Housing 
complex that has 
been built with 

426 units, hence 
the target has 
been over 

achieved. 


3.14 

The km of 

unsurfaced 

ROAD converted 

to surfaced. 

7.10 

Number 

55.3 

11 

11 

11.60 

© 





48 


50 



Plan 3 :Creating a Quality Living Environment 


Plan Owner: Sibusiso Sit 

hole 

Index 

KPI 

Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/201 

4 

Quarter 4 
Target as 
at June 
2013/201 

4 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

3.15 

The number of 

consumer units 
collecting FREE 
basic 

ELECTRICITY 

(65kWh/month). 

85 698 

Number 

102 500 

92 500 

92500 

85374.00 

@ 

Not 

achieved - 

7.70% 

variance 

Several, Possible 
cause is extreme 
cold is forcing 
customers to buy 
more electricity 
excluding them 
from FBE 

Created new FBE 
pamphlets to 
attempt to 
increase the 
understanding of 
FBE 

3.16 

The number of 
new fully 
subsidized 

HOUSES 

constructed. 

4181 

Number 

32000 

7300 

7300 

6809 

@ 

Not 

achieved - 

6.73% 

variance 

Delays in the 
timely 

construction of 

slabs and 
engineering 
services. Lack of 
alignment and 
prioritisation of 
bulks for North 

and West areas. 

Engineering 
services has been 
included as part 
of HSSDBIPfor 
14/15 fin yr. 
Ongoing meetings 
for prioritisation 
of bulks 

3.17 

The % of non- 
revenue water 

loss. 

37.30 

% 

28.0 

35 

35 

39.20 

@ 

Not 

achieved - 

12% 

variance 

Illegal 

connections 

continue to be a 
problem 
(estimated at 40 
000). 

Refer to end of 
plan 3 scorecard 


49 


51 




Plan 3 :Creating a Quality Living Environment 










Plan Owner: Sibusiso Sit 

hole 









Index 

KPI 

Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/201 

4 

Quarter 4 
Target as 
at June 
2013/201 

4 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

3.18 

Electricity losses 
(technical and 
non-technical) 
as a % of 
electricity sales. 

5.85 

% 

6 

6 

6 

6.11 

@ 


Losses due to 

technical losses 
when transferring 
energy from one 
point to another 
and non technical 
e.g. damaged 
meters, illegal 
recalibration of 
meters, etc.KPI 
should reflect as a 
% of electricity 
purchased and 
not electricity 
sold. This will be 

corrected in th 

new year. 

Refer to end of 
plan 3 scorecard 

3.19 

WASTE 

RECYCLED as a 

% of total waste 
disposed at 
municipal land 
fill sites. 

7.90 

% 

20 

9 

9 

7.60% 

@ 

Not 

achieved 

15.56% 

variance 

Delays in 
expanding the 
Orange bag 
programme to 
the Townships & 
the delay in the 
introduction of 

bottle & can 

collection. This is 

Expanding the 
Orange bag 
programme to 
the Townships & 
the introduction 

of bottle & can 

collection is now 
planned to be 
launched in 2015. 


50 


52 



Plan 3 :Creating a Quality Living Environment 


Plan Owner: Sibusiso Sit 

hole 

Index 

KPI 

Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/201 

4 

Quarter 4 
Target as 
at June 
2013/201 

4 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 











now planned to 
be launched in 

2015. 


3.20 

Phase 1 of 
Integrated Rapid 
Public Transport 
Network (IRPTN) 

10.00 

% 

Operational 
Implementa 
tion of 

Phase 1 

100 

100 

95.13 

© 

Achieved 

- 4.87 

variance 

Due to the delays 
in the 

appointment of 
the contractor. 

TBC 

3.21 

Undertake 
projects to 
develop an 
integrated asset 
management 
plan 

75 

% 

100% 

achievemen 

tof SDBIP 
projects 

100% 

achievem 

ent of 

SDBIP 

projects 

76.67 
(Annual 
target - 

means 

100% of 
targets in 
SDBIP 

are 

achieved 

. 100% 

of SDBIP 
targets 
for Q4 is 
76.67%) 

76.67 

© 





51 


53 




Plan 3 :Creating a Quality Living Environment 










Plan Owner; Sibusiso Sit 

hole 









Index 

KPI 

Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/201 

4 

Quarter 4 
Target as 
at June 
2013/201 

4 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve Performance 

3.22 

Create an 

integrated 

human 

settlements plan 

100 

% 

100% 

achievemen 

tof SDBIP 
projects 

Social 

facility 

pre- 

implemen 

tation 

plan 

Phase 3 
develope 
d - 100% 

100 

50.00 

@ 

Not 

achieved - 

50% 

variance 

Site mtgs to 
confirm locations 

of rural nodes 

were not held. 

Site mtgs with 

DCM Gumede 

were set & 
postponed 4 
times due to 

elections and 

other DCM 

commitments 

Due to the DCM's busy 
schedule and other 
priorities that arise, 
co-ordinating the 
meeting has been a 
challenge. We have 
however, requested a 
new date for the 
meeting. This has 
been provided and the 
meeting will take 
place in the new 
financial year 

3.23 

Develop an 
integrated 

Freight and 
Logistics 

Strategic 
Framework and 

Plan 

New KPI 

- No 

baseline 

% 

Developed 
integrated 
Freight and 
Logistics 
Framework 

and Plan 

100% of 
plan 

complete 

d 

100 

84.00 

@ 

Not 

achieved - 

16% 

variance 

Task 4 Integrated 

Strategic 

Framework 

required 

extensive 

consultation and 
approval at every 
level of 
government 
(including 

Transnet 

Parastatal and 

theSIP2 

Project is rapidly 
reaching conclusion 
and will be completed 
in entirety by latest 
mid-August 2014. 
Project team is 
working overtime (at 
no additional cost) to 
meet the target 
completion date and 
make up the time lost. 
Weekly progress and 
workshop meetings 


53 


54 


Plan 3 :Creating a Quality Living Environment 


Plan Owner: Sibusiso Sit 

hole 

Index 

KPI Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/201 

4 

Quarter 4 
Target as 
at June 
2013/201 

4 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 











Infrastructure 

Coordination 
Committee). 
Consultation and 
approval was 
sought from 
private sector 
freight and 
logistics users and 
operations. This 
added 

unforeseen 

delays. 

Furthermore, 

comments 

received from 
various key 
stakeholders 
required a few 
major 

amendments also 
adding to delays. 

progress and 
workshop 
meetings are 
being held to 
minimise further 
delays and ensure 
the project is 
aligning with the 
ultimate 
objectives. 


53 


55 




Plan 3 :Creating a Quality Living Environment 










Plan Owner: Sibusiso Sit 

hole 









Index 

KPI 

Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/201 

4 

Quarter 4 
Target as 
at June 
2013/201 

4 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

3.24 

Upgrade & 
refurbishment 
of pre-1994 
housing units. 

New KPI 

- No 

baseline 

Number 

10600 

1700 

1700 

664.00 

@ 

Not 

achieved - 

60.94% 

variance 

The planning was 
for the HSDG 
funding to be 
tranched in Jan 

2013 but DoHS 
granted approval 
of project to July 
2013. Delays in 
procuring service 
providers as a 
result of the 
complexity and 
the magnitude of 
tenders that 
came out( +- 100 
SP). Noticeable 
poor 

performance of 

SP's in some 

areas. 

Award of 

contracts 
approved by Bid 
Evaluation 

Committee on 23 
September 2013 
for R293 areas 

and 7 October 

2013 for Ex-Own 

affairs. The 
program is 
expected to pick 
up delivery in 
financial yrs to 

come. 

3.25 

Sale of rental 

stock. 

558 

Number 

2400 

1500 

1500 

917.00 

@ 

Not 

achieved - 

38.87% 

variance 

Original 
projection was 

700. Due to mid 
year performance 
this was adjusted 
to 1500, 

More staff 

recruited to 
improve sales. A 
report will be 
submitted to 

Council to extend 


54 


56 


Plan 3 :Creating a Quality Living Environment 


Plan Owner: Sibusiso Sit 

hole 

Index 

KPI Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/201 

4 

Quarter 4 
Target as 
at June 
2013/201 

4 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 











however, the 
underachievemen 

t was as a result 
of the following 
factors: 
reluctance by 
tenants to 
purchase their 
units; illegal 
occupations cut 
off date was Dec 
2010, no sanction 
for post 

invasions/illegal 
occupations; 
difficulties in 
identifying 
unregistered 
properties in 

R293 areas; land 
registered in 
name of 3rd 
parties; and 
double 
registrations. 

cut off date for 
illegal occupants. 
Strong social 
support required 
when evictions 
are being 
conducted. 

WINDEED has 
been engaged to 
identify 
unregistered 
properties in 

R293 areas. 


55 


57 



Plan 3 :Creating a Quality Living Environment 


Plan Owner: Sibusiso Sit 

hole 

Index 

KPI 

Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/201 

4 

Quarter 4 
Target as 
at June 
2013/201 

4 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

3.26 

An updated 
proxy indigent 
register 

New KPI 

- No 

Baseline. 

% 

100% 

100% 

100 

100.00 

© 




3.27 

Updated Built 
Environment 

Performance 

Plan 

New KPI 

- No 

Baseline. 

Yes/No 

100% 

100% 

100 

100.00 

© 




3.28 

The number of 
properties 
below the 

eThekwini 

defined level of 
service provided 
with 

STORMWATER 

solutions. 

New KPI 

- No 

Baseline. 

Number 

2200 

440 

440 

475.00 

© 


Target exceeded 
due to additional 
budget provided 
for Emergency 
Work. 


3.29 

The number of 

km of SIDEWALK 

constructed. 

New KPI 

- No 

Baseline. 

Number 

200 

40 

40 

51.20 

© 


(a) completion of 
carry over 
projects from 
2012/13 financial 
year (b) 
completion of 
additional 

sidewalks for ETA 
using their 
funding 



56 


58 



Plan 3 :Creating a Quality Living Environment 


Plan Owner: Sibusiso Sit 

hole 

Index 

KPI 

Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/201 

4 

Quarter 4 
Target as 
at June 
2013/201 

4 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

3.30 

The number of 

PUBLIC 

TRANSPORT 

RANKS 

constructed. 

New KPI 

- No 

Baseline. 

Number 

10 

2 

2 

1.00 

@ 

Not 

achieved - 

50% 

variance 

Due to the delays 
in the 

appointment of 
the contractor. 

Although there 
was a delay in 
the contractor 
appointment, 
the target refers 
to work that will 
be done over 2 
years and not 
just the current 
year. The target 
was not 
corrected at 

MTA but will be 
corrected in the 
new financial 
year. 

3.31 

Public Transport 
Services. No. of 

passengers 
using accessible 
scheduled public 
transport 
services. 

New KPI 

- No 

Baseline. 

Number 

117 128 

80 000 

80000 

96399.00 

© 


The Service is 
increasing 
drastically, as 
passengers 

numbers are 
increasing every 
month. 



57 


59 



Plan 3 :Creating a Quality Living Environment 


Plan Owner: Sibusiso Sit 

hole 

Index 

KPI 

Name 

Baseline 

30 June 

2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/201 

4 

Quarter 4 
Target as 
at June 
2013/201 

4 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

3.32 

Public Transport 
Services. No. of 

passengers 
using scheduled 
public transport 
services. 

New KPI 

- No 

Baseline. 

Number 

38 066 600 

26 000 

000 

26000000 

29507020 

© 


The Unit actually 
achieved more 

than the 

estimated 
passenger figures. 
The Service is 
increasing 
drastically, as 
passengers 

numbers are 
increasing every 
month. 



58 


3.17 Measure to improve 


60 


Department has employed more inspectors but political and social support will be essential. The 
following action plans have been developed to address the matter: 

• The Municipality will be changing the accounting treatment of water supplied to informal 
settlements: In line with other cities, all water supplied to informal settlements will not be regarded 
as water loss. 

• Everyone who needs to be metered will be logged onto the system. 

• Turnaround time to attend to water leaks on properties will be improved: There are still complaints 
that the Municipality is not responding expeditiously to water leaks. To address this we are looking at 
a team that will fix and charge consumers to repair leaks, pipes, replace washers, etc. We are flagging 
accounts with increased consumption and officials will be visiting those customers. 

• Zonal water loss analysis (2/3 000 households) to be undertaken: Meters are currently in place on a 
reservoir basis. However, there is a need for an analysis for each zone to be able to plan interventions 
in terms of the specifics of the zone concerned. 

• The Municipality will begin a process of blacklisting contractors found to be causing sabotage to get 
work. There are also concerns that the same leaks are being repaired several times. In addition, the 
same contractor is used to do the work. These cases will be investigated. 

• Strategy around schools: We need to develop a schedule to shutdown water supply to schools after 
hours. 


3.18 Measures to improve 

Monthly meetings to address the issue are being held. 

An action plan to address the issue is as follows: 

• A cost-benefit analysis is being done in order to introduce monthly meter reading, as well as pre- 
paid meters or smart metering. 

• A proactive asset management plan for the replacement of meters is being developed. 

• The Municipality is developing a system of ensuring that all disconnection orders are implemented 
on the same day. This is being monitored closely through a statistical report. 

• Our officials will conduct inspections to ensure that every meter is attached to a property. 


59 




62 


Plan 4 iFostering a Socially Equitable Environment 


Plan Owner: Dr Musa Gumede 


Index 

KPI Name 

Baseline 

30 June 

2013 

Unit 

Of 

Measu 

re 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as at 
June 

2013/2014 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 
tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

4.1 

Implementatio 
n of 

programmes 
and projects 
to ensure 
compliance 
with National 

Road traffic 

Act and 

Municipal 

Bylaws 

New KPI - 

No 

Baseline 

% 

100% 

implementat 
ion of 
projects in 
the SDBIP 

100% 

implementat 
ion of 7 
Projects 
identified in 

the SDBIP 

100 

90.18 

@ 

Not 

achieved - 

9.82% 

variance 

Delays in part of 
the subprojects 
related to tender 
process and non 
appointment of 
contractors 

Meeting with 
architecture to 

seek solutions 

to the issues at 

hand and roll 

over of funds - 

as this relates to 

PRJ 8- the other 

7 projects have 
been 

implemented 

4.2 

Value of 
property 
destroyed by 
fire per RIOOO 
of rateable 

value 

New KPI - 

No 

Baseline 

Numb 

er 

0.85 

0.95 

0.95 

0.93 

© 





60 


63 


Plan 4 :Fostering a Socially Equitable Environment 


Plan Owner; Dr Musa Gumede 


Index 

KPI Name 

Baseline 

30 June 

2013 

Unit 

Of 

Measu 

re 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as at 
June 

2013/2014 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

4.3 

Percentage of 
HIV positive 
pregnant 

women 

eligible for 
treatment 

started on 

ARVs in 

facilities 

providing 

ARVs 

87% 

% 

95% 

90% 

90 

98.80% 

© 


All patients that 
are not contra- 
indicated for 

treatment are 

started on 
treatment as per 
national policy. 

The increase of 
the KPI target to 
95% at mid term 

was discussed but 

not effected on 

paper. 

To conduct 
quality 

assurance audit 

to determine 

where and who 
is not adhering 
to policy 
requirements. 


61 


64 


Plan 4 :Fostering a Socially Equitable Environment 


Plan Owner; Dr Musa Gumede 


Index 

KPI Name 

Baseline 

30 June 

2013 

Unit 

Of 

Measu 

re 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as at 
June 

2013/2014 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

4.4 

Number of Air 
Quality 

Stations 

0 

Numb 

er 

5 

2 

2 

4.00 

© 


First station is a 
carrying over from 
previous year - 
finalised in 13/14 

FY. 2"^ air station 
planned and 
completed in 

2013/14 FY. The 
third and fourth 

stations were 
purchased using 
the adjusted capital 
project funding for 
health when it 

become clear that 

there would be 
under expenditure 
in clinic 

refurbishment due 
to delays at support 
services points 
outside of health. 



62 


65 


Plan 4 :Fostering a Socially Equitable Environment 


Plan Owner; Dr Musa Gumede 


Index 

KPI Name 

Baseline 

30 June 

2013 

Unit 

Of 

Measu 

re 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as at 
June 

2013/2014 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

4.5 

Loss of life 

from fire and 

other 

emergencies 
per 100000 
population 
served 

1.92 

Numb 

er 

1 

1.04 

1.04 

1.74 

@ 

There 

seems to 

be a 

problem 
in that 
the 5 year 
target 
should 

show a 

5% 

reduction 

in the 

index 

over the 5 

year 
period 
equating 
to a 1% 

reduction 

per year. 

Hence if 

the 

baseline 
figure is 
1.92 a 1% 

reduction 

would 




63 


66 


Plan 4 :Fostering a Socially Equitable Environment 


Plan Owner; Dr Musa Gumede 


Index 

KPI Name 

Baseline 

30 June 

2013 

Unit 

Of 

Measu 

re 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as at 
June 

2013/2014 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 










result in a 

13-14 
target of 
1.90 and 

not 1.04 

as 

published 



4.6 

No. of projects 
implemented 
in relation to 
the Social, 
Situational, 
Crime 

Prevention 
strategies and 
urban safety 
management 
of the built 

environment 
throughout 
the EMA 

New KPI - 

No 

Baseline. 

Numb 

er 

130 

206 

206 

339.00 

© 





64 


67 


Plan 4 :Fostering a Socially Equitable Environment 


Plan Owner; Dr Musa Gumede 


Index 

KPI Name 

Baseline 

30 June 

2013 

Unit 

Of 

Measu 

re 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as at 
June 

2013/2014 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

4.7 

Develop a 

City-wide 

disaster 

management 

plan (Level 2) 

addressing 

internal and 

external 

requirements 

New KPI - 

No 

Baseline 

% 

City-wide 
disaster 
management 
plan (Level 2) 

90.63 

90.625 

90.19 

© 

Achieved 

- 0.4% 

variance 

The under- 
achievement is 

due to camera 
units not being 
installed as a 

result of time 
delays 

experienced in 
the transition of 
the appointment 
of a new service 
provider in terms 
of the SCM 

Tender Processes. 

Purchase 

Orders have 
been generated 
for the Service 

Provider to 
proceed with 
the 

installation/s. CC 
TV project 

4.8 

Ensure the 
safety and 
security of 
municipal 
councillors, 
officials and 
municipal 
assets 

New KPI - 

No 

Baseline. 

% 

100% 

Implementat 
ion of the 

SDBIP 

75% 

Implementat 
ion of 

Projects 
linked to the 

SDBIP 

75 

75 

© 





65 


68 


Plan 4 :Fostering a Socially Equitable Environment 


Plan Owner; Dr Musa Gumede 


Index 

KPI Name 

Baseline 

30 June 

2013 

Unit 

Of 

Measu 

re 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as at 
June 

2013/2014 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

4.9 

Percentage 
children aged 
12-59 

months 

immunised 

with Vitamin A 

58% 

% 

80% 

65% 

65 

77.50 

© 


Health Unit 

conducted 

outreach 
campaigns to 
reach parents and 
children of this 

age group. 


4.10 

Number of 

clinics due for 
upgrade with 
health unit 
having 
submitted all 

due 

documentatio 

n within the 
first quarter of 
the financial 

year 

0 

Numb 

er 

30 

5 

5 

5.00 

© 





66 


69 


Plan 4 :Fostering a Socially Equitable Environment 


Plan Owner; Dr Musa Gumede 


Index 

KPI Name 

Baseline 

30 June 

2013 

Unit 

Of 

Measu 

re 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as at 
June 

2013/2014 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

4.11 

Percentage of 
Health issues 
arising from 

war room 

structure 

addressed in 

functional war 

rooms 

New KPI - 

No 

Baseline. 

% 

80% 

80% 

80 

93.50 

© 



Deputy Heads 
to engage with 
monthly war 
room reports 
and improve 
supervision of 

OSS 

interventions at 

war room 


67 


70 


Plan 4 :Fostering a Socially Equitable Environment 


Plan Owner; Dr Musa Gumede 


Index 

KPI Name 

Baseline 

30 June 

2013 

Unit 

Of 

Measu 

re 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as at 
June 

2013/2014 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

4.12 

Number of 
projects sites 
with 

implementatio 
n of rodent 

reduction 

programme 

New KPI - 

No 

Baseline. 

Numb 

er 

7 

3 

3 

3.00 

© 


This is a 5 stage 
annual 

programme. This 
is a new 
programme in 
new sites, and 
the project under 
calculated the 

time frame 
required to show 
a decline in 

rodent 

population once 
poisoning has 
been effected. 

The programme 
now in stage 5, 
which is the final 
stage of 
programme 
implementation. 



68 


71 


Plan 4 :Fostering a Socially Equitable Environment 


Plan Owner; Dr Musa Gumede 


Index 

KPI Name 

Baseline 

30 June 

2013 

Unit 

Of 

Measu 

re 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as at 
June 

2013/2014 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

4.13 

% of newTB 
positive 
patients 
converting 
from TB 

bacteria 
positive to 
negative 

New KPI - 

No 

Baseline. 

% 

85 

77 

77 

81.70 

© 


Decentralisation of 

electronic TB 
register to facilities 
has supported real 
time reporting and 
follow up of 
patients through 
facility based 
patient report 
generation. Has 
allowed for early 
identification of 
problem patient 
and through a 
partnership with 
data capturers and 
CCGs these patients 
have followed up to 
take treatment 
accordingly. 



69 


72 


Plan 4 :Fostering a Socially Equitable Environment 


Plan Owner; Dr Musa Gumede 


Index 

KPI Name 

Baseline 

30 June 

2013 

Unit 

Of 

Measu 

re 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as at 
June 

2013/2014 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

4.14 

Number of 

persons 

initiated on 

ARVs 

New KPI - 

No 

Baseline. 

Numb 

er 

30 000 

20 000 

20000 

33720 

© 


The unit has 

increased the 
provider initiated 
HIV testing rate 
to persons visiting 
the clinic. 

Therefore HIV 
positive eligible 
persons who 
would have been 
missed through 
the patient 
initiated 
voluntary 
requests are 
found earlier 
through the 
health provider 
initiated 

mechanism. 



70 


73 


Plan 4 :Fostering a Socially Equitable Environment 


Plan Owner; Dr Musa Gumede 


Index 

KPI Name 

Baseline 

30 June 

2013 

Unit 

Of 

Measu 

re 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as at 
June 

2013/2014 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

4.15 

Number of 

ward based 

PHC outreach 

teams 

established 

and 

implementing 
PHC outreach 

services 

New KPI - 

No 

Baseline. 

Numb 

er 

15 

3 

3 

3.00 

© 


Project team 
appointed to 
commission 

services and 
mobilise requisite 

resources. 

This will be 
directly 
supervised by 
the Head of 

health 

4.16 

Number of 

Environmental 
Health By-law 
and Legislative 

non 

compliance 
notices served 

New KPI - 

No 

Baseline. 

Numb 

er 

1000 

200 

200 

1345.00 

© 


High number of 
over grown 

vacant land 
(OGVL) notices 
sent out this 
during this 
period. Going 
forward the KPI in 

will focus 
exclusively on 
unsatisfactory 
environmental 
health conditions, 
excluding 
overgrown vacant 
land. 

The unit will 
clarify definition 
going forward 
to exclude 

OGVL. 


71 


74 


Plan 4 :Fostering a Socially Equitable Environment 


Plan Owner; Dr Musa Gumede 


Index 

KPI Name 

Baseline 

30 June 

2013 

Unit 

Of 

Measu 

re 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as at 
June 

2013/2014 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

4.17 

Number of 

Prosecutions 

initiated for 

non 

compliance 

with 

environmental 
health by-laws 
and legislation 

New KPI - 

No 

Baseline. 

Numb 

er 

400 

100 

100 

217.00 

© 


The clean my city 
campaign has 
resulted in the 
health unit having 
to spend two 
days per week 
focussing on the 
Central Business 

District with the 
specific intent of 
enforcement for 
non compliance 
to city by-laws. In 
addition the 

health unit 

revived the law 

enforcement 
capabilities within 
the unit including 
support systems 
for the 

enforcement 

operations. 



72 


75 


Plan 4 :Fostering a Socially Equitable Environment 


Plan Owner; Dr Musa Gumede 


Index 

KPI Name 

Baseline 

30 June 

2013 

Unit 

Of 

Measu 

re 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as at 
June 

2013/2014 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

4.18 

Number of 
men prepared 
and referred 

for MMC 

New KPI - 

No 

Baseline. 

Numb 

er 

50 000 

10 000 

10000 

10681 

© 


The health unit 

conducted an 

outreach in 

schools to recruit 
boys for male 
medical 

circumcision. 


4.19 

% schools 
benefitting 
from the 
school feeding 
scheme 

programme 
inspected for 
compliance 
with food 
safety related 
legislation 

New KPI - 

No 

Baseline. 

% 

100% 

100% 

100 

69.50 


Not 

achieved - 

30% 

variance 

Poor supervision 
of environmental 

health services 

Close 

supervision by 
deputy heads of 
sub district and 

effective 

performance 

management. 


73 


76 


Plan 4 :Fostering a Socially Equitable Environment 


Plan Owner; Dr Musa Gumede 


Index 

KPI Name 

Baseline 

30 June 

2013 

Unit 

Of 

Measu 

re 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as at 
June 

2013/2014 

Actual 

June 

2013/201 

4 

Indicate 

r 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

4.20 

Reduction in 

the number of 

contravention 

s in terms of 
the Security 
Management 
Framework 

New KPI - 

No 

Baseline. 

Numb 

er 

0 

45 

45 

12.88 

© 


Over - Weekly 
Monitoring of 
Companies, 
Contracts 
reflecting 
penalties, 
Additional 
inspections from 
other divisions 

and overtime. 


4.21 

Existence of a 
multi-year 
National Core 

Standard 

compliance 

plan. 

New KPI - 

No 

Baseline. 

Numb 

er 

1 Multi-Year 

National 

Core 

Standard 

compliance 

plan 

1 Multi-Year 

National 

Core 

Standard 

compliance 

plan 

1 

1.00 

© 


Audit plan 
complete. Audit 
of all fixed 

facilities to be 

conducted in 

April. 



74 


77 


Plan 5 ;Creating a Platform for Growth, Empowerment and Skills Development 


Plan Owner: Dumisile Nene 


Index 

KPI Name 

Baseline 30 

June 2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as 
at June 
2013/2014 

Actual as 

at June 
2013/2014 

Indicator 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

5.1 

% 

implementation 
of the Work 

Place Skills Plan 

70 

% 

100 

75 

75 

65% 

© 

Not 

achieved - 

13% 

variance 



5.2 

Compilation 
and submission 

of the 

Workplace Skills 
Plan by 30 June 

New KPI 

Baseline to 

be 

determined 

% 

100 

100 

100 

100 

© 




5.3 

The percentage 
of a 

Municipality's 
budget actual 
spent on 
implementing 
its workplace 
skills plan 

0.26 

% 

1% of payroll 

1% of payroll 

1 

1.3% 

© 





75 


78 


5.4 

Promote talent 
management 
and succession 
planning by 
implementation 
of an approved 
TM framework 

New KPI - 

baseline to 

be 

determined 

% 

Approved 
succession 
plans for all 
critical and 

scare skills 

within the 
organisation 
and fully 
implemente 
d TM process 

Implementat 
ion of the 
approved TM 
framework - 

100% 

100 

80.00 

@ 

Not 

Achieved 

-20% 

Variance 

Under 

performance 
in creating 

an 

integrated 

HR System, 
Partially due 
to the 

migration of 
the server to 

the more 

stable P- 

Series. Lots 

of time 

spent on 

successful 
migration 
process, 
integration 
was delayed, 
awaiting the 
release of 

version 13 

which will 

address our 

integration 

needs. 

One on one 
meetings with 
Heads have 

been held and 

theTM 

requirements 

explained. 

Dates secured 

from some 

clusters for 

reviews. 

Identified 
alignment 
between TM 

and Skills and 

involvement 

of TM team in 

Skills Unit 
strategic 
meetings will 
ensure that 

this item is 

attended to. 

5.5 

Number of 

activities 

established to 
promote the 

47 

Number 

130 

26 

26 

26.00 

© 





76 


79 


Plan 5 :Creating a Platform for Growth, Empowerment and Skills Development 


Plan Owner: Dumisile Nene 


Index 

KPI Name 

Baseline 30 

June 2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as 
at June 
2013/2014 

Actual as 

at June 
2013/2014 

Indicator 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 


city as a centre 
for learning 












77 


80 


Plan 5 :Creating a Platform for Growth, Empowerment and Skills Development 


Plan Owner: Dumisile Nene 


Index 

KPI Name 

Baseline 30 

June 2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as 
at June 
2013/2014 

Actual as 

at June 
2013/2014 

Indicator 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

5.6 

Develop and 
Implement HR 
projects: 
IjPerception 
Study, 2)HR 
System, 3)E- 
recruitment 

91% of 4 

project 

implemented 

% 

100% 

implementat 
ion of 

identified 

projects 

100% 

implementat 
ion of the 4 
projects 

100 

85.39 

@ 

Not 

Achieved 

- 9.61% 

Variance 

Under 

performance 
in creating 

an 

integrated 

HR System, 
Partially due 
to the 

migration of 
the server to 

the more 

stable P- 

Series. Lots 

of time 
spent on 

successful 
migration 
process, 
integration 
was delayed, 
awaiting the 
release of 

version 13 

which will 

address our 

integration 

needs. 

Regular 
meetings have 
been 

scheduled to 

ensure that 
the systems 
meet business 
requirements 
and that the 
alignment 
process will 
yield the 
desired 

results. The 

more stable 
server being 
implemented 
will ensure the 
development 
and testing of 
new modules 
at a greater 
pace resulting 
in us being 
able to meet 
our targets by 
Q4. 


78 


81 


Plan 5 :Creating a Platform for Growth, Empowerment and Skills Development 


Plan Owner: Dumisile Nene 


Index 

KPI Name 

Baseline 30 

June 2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as 
at June 
2013/2014 

Actual as 

at June 
2013/2014 

Indicator 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 


The number of people from employment equity target groups employed in 
the three highest levels of management in compliance with a municipality's 
approved employment equity plan: 







5.7 

AFRICAN TOP 

African Top 
=52 

Number 

64 

African Top 
=64 

64 

50.00 

@ 

Not 

Achieved 

-21.87% 

Variance 

Proposed 

EE 

Committee 

in terms of 

institutiona 

1 review 

will look at 
possible 
ways at 
addressing 
this 

condition 

Consultation is 
taking place 

5.8 

AFRICAN 

SENIOR 

102 

Number 

131 

African 

Senior=131 

131 

104.00 

@ 

Not 

Achieved 

-20.61% 

Variance 

Consultation is 
taking place 

5.9 

AFRICAN 

MIDDLE 

305 

Number 

372 

African 

Middle=372 

372 

327.00 

@ 

Not 

Achieved 

-12.09% 

Variance 

EE 

programme 

s is under 

discussion 

Consultation is 
taking place. A 
proposed EE 
committee in 

terms of 

institutional 

review will 

look at 

possible ways 
at addressing 
this condition 


79 


82 


Plan 5 :Creating a Platform for Growth, Empowerment and Skills Development 


Plan Owner: Dumisile Nene 


Index 

KPI Name 

Baseline 30 

June 2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as 
at June 
2013/2014 

Actual as 

at June 
2013/2014 

Indicator 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

5.10 

COLOURED TOP 

4 

Number 

2 

Coloured 

Top=2 

2 

5.00 

© 


EE 

programme 

s is under 

discussion 

A proposed EE 
committee will 

look at the 
possible ways 
at addressing 
this condition 

5.11 

COLOURED 

SENIOR 

12 

Number 

6 

Coloured 

Senior=6 

6 

11.00 

© 


EE 

programme 

s is under 

discussion 

A proposed EE 
committee will 

look at the 
possible ways 
at addressing 
this condition 

5.12 

COLOURED 

MIDDLE 

25 

Number 

15 

Coloured 

Middle=15 

15 

30.00 

© 


EE 

programme 

s is under 

discussion 

A proposed EE 
committee will 

look at the 
possible ways 
at addressing 
this condition 

5.13 

INDIAN TOP 

29 

Number 

23 

Indian 

Top=23 

23 

28.00 

© 


EE 

programme 

s is under 

discussion 

A proposed EE 
committee will 

look at the 
possible ways 
at addressing 
this condition 


80 


83 


Plan 5 :Creating a Platform for Growth, Empowerment and Skills Development 


Plan Owner: Dumisile Nene 


Index 

KPI Name 

Baseline 30 

June 2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as 
at June 
2013/2014 

Actual as 

at June 
2013/2014 

Indicator 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

5.14 

INDIAN SENIOR 

114 

Number 

96 

Indian 

Senior=96 

96 

120.00 

© 


EE 

programme 

s is under 

discussion 

A proposed EE 
committee will 

look at the 
possible ways 
at addressing 
this condition 

5.15 

INDIAN MIDDLE 

252 

Number 

201 

Indian 

Middle=201 

201 

259.00 

© 


EE 

programme 

s is under 

discussion 


5.16 

FEMALE TOP 

20 

Number 

34 

Female 

Top=34 

34 

21.00 

@ 

Not 

Achieved 

-38.23% 

Variance 

A proposed 
EE 

committee 

in terms of 

institutiona 

1 review 

will look at 
possible 
ways of 
addressing 
this 

condition 

Consultation is 
taking place 


81 


84 


Plan 5 :Creating a Platform for Growth, Empowerment and Skills Development 


Plan Owner: Dumisile Nene 


Index 

KPI Name 

Baseline 30 

June 2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as 
at June 
2013/2014 

Actual as 

at June 
2013/2014 

Indicator 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

5.17 

FEMALE SENIOR 

85 

Number 

100 

Female 

Senior= 100 

100 

36.00 

@ 

Not 

Achieved 

-64% 

Variance 

A proposed 
EE 

committee 

in terms of 

institutiona 

1 review 

will look at 
ways at 
addressing 
this 

conditions 

Consultation is 
taking place 

5.18 

FEMALE 

MIDDLE 

125 

Number 

275 

Female 

Middle=275 

275 

260.00 

@ 

Not 

Achieved 

-5.45% 

Variance 

Consultation is 
taking place. 

5.19 

Provide 

comprehensive 
health and 
safety 

programmes as 
per the SDBIP 

125 

Number 

51440 

10288 

10288 

10415.00 

© 




5.20 

Reduce the 
Disabling Injury 
Frequency Rate 
(DIFR) on an 
annual basis 

0.79 

Ratio 

Decrease 

Disabling 

Injury 
Frequency 
Rate (DIFR) 
to 1,50 

To reduce 

DIFR to 2.25 

2.25 

0.93 

© 


Effective 

preventative 

programmes 

such as 
safety 
inspections, 
risk 

assessments 

, audits and 
training 



82 


85 


Plan 5 :Creating a Platform for Growth, Empowerment and Skills Development 


Plan Owner: Dumisile Nene 


Index 

KPI Name 

Baseline 30 

June 2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as 
at June 
2013/2014 

Actual as 

at June 
2013/2014 

Indicator 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

5.21 

Addressing the 
low level of 
youth and adult 
language and 
numeracy skills 

100 

% 

Increase in 
youth and 
adult literacy 

100% 

achievement 

of SDBIP 
targets 

100 

100.00 

© 




5.22 

Encouraging 
and supporting 
cooperatives, 
small 

enterprises, 
worker 
initiated, NGO 
and community 
training 
initiatives 

100 

% 

100% 

achievement 

of SDBIP 
targets 

100% 

achievement 

of SDBIP 
targets 

100 

100.00 

© 




5.23 

Increasing 
public sector 
capacity for 
improved 
service delivery 
and supporting 
the building of a 
developmental 
state 

65 

% 

100% 

implementat 
ion of SDBIP 
targets 

100% 

achievement 

of SDBIP 
targets 

100 

87.50 

© 

Not 

Achieved 

-12.5% 

Variance 

3 months 

was lost. In 
implement 
ation -50% 

as a result 

of national 

elections 
taking 
place in 

May and 
due to 

other 

Implementatio 
n plan was 
reviewed and 
training period 
extension was 
granted. 


83 


86 


Plan 5 :Creating a Platform for Growth, Empowerment and Skills Development 


Plan Owner: Dumisile Nene 


Index 

KPI Name 

Baseline 30 

June 2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/2014 

Quarter 4 
Target as 
at June 
2013/2014 

Actual as 

at June 
2013/2014 

Indicator 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 











unforeseen 

activities 
building up 
to elections 


5.24 

Building career 
and vocational 
guidance 

100 

% 

100% 

achievement 

of SDBIP 
targets 

100% 

achievement 

of SDBIP 
targets 

100 

100.00 

© 





84 


87 


Plan 6 :Embracing our Cultural Diversity, Arts and Heritage 
Plan Owner: Dr Musa Gumede 


Index 

KPI Name 

Baseline as 

at 30 June 

2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/20 

14 

Quarter 4 
Target as 
at June 
2013/2014 

Quart 
er 4 

Actual 

Indicator 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

6.1 

Number of 
opportunities 
reflecting the extent 
of access to arts, 
culture, sports, 
recreation and 
heritage 

361 

Number 

1125 

opportunitie 

s 

248 

225 (Q4 
target per 
approved 
MTAis 

248. This 

was not 
updated in 
error) 

457.00 

© 




6.2 

Number of socio- 
cultural 
empowerment 
initiatives. 

165 

Number 

835 

initiatives 

49 

47 (Q4 
target per 
approved 
MTA is 49. 

This was 
not updated 
in error) 

145.00 

© 




6.3 

Development of 
Master-plan linked 
to Cultural Precincts 

within the EMA" 
(Phase 1) 

New KPI - 

No 

Baseline. 

% 

Cultural 

Precincts 

Master Plan 
in place 
(100% 
completion 
of 4 phases) 

100% 

Complet 

ion of 

Concept 

note/Fe 

asibility 

100 

100.00 

© 





85 


88 


Plan 6 :Embracing our Cultural Diversity, Arts and Heritage 
Plan Owner: Dr Musa Gumede 


Index 

KPI Name 

Baseline as 

at 30 June 

2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/20 

14 

Quarter 4 
Target as 
at June 
2013/2014 

Quart 
er 4 

Actual 

Indicator 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

6.4 

Execution of 

Heritage 

programmes 

New KPI - 

No 

Baseline. 

Number 

195 

Programmes 

55 

Program 

mes 

39 (Q4 
target per 
approved 
MTA is 55. 

This was 

not 

updated in 
error) 

55.00 

© 




6.5 

Progress made 
towards effective 
management and 
compliance with 
legislative 
requirements to 
support effective 
green environment 
management. 

90% 

% 

100% 

100% 

100 

100.00 

© 




6.6 

Implementation of 

Sporting 

opportunities 

New KPI - 

No 

Baseline. 

Number 

325 

65 

65 

65.00 

© 





86 


89 


Plan 6 :Embracing our Cultural Diversity, Arts and Heritage 
Plan Owner: Dr Musa Gumede 


Index 

KPI Name 

Baseline as 

at 30 June 

2013 

Unit Of 

Measure 

5 Year 

Target 

2016/2017 

Annual 

Target 

2013/20 

14 

Quarter 4 
Target as 
at June 
2013/2014 

Quart 
er 4 

Actual 

Indicator 

Achieved 
within 5% 

tolerance 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

6.7 

Implementation of 
Cultural and Natural 
Heritage project for 
infrastructure 
development and 
asset management. 

New KPI - 

No 

Baseline. 

% 

100% 

100% 

100 

90.00 

@ 

Not 

achieved - 

10% 

variance 

Evaluation of 

tenders for 

Architects & 
disbursements, 
bid evaluation 
and appointment 

A new tender 

was submitted 
in May 


87 


90 


Plan 7 :Good Governance and Responsive Local Government 


Plan Owner: Sipho Cele 


Index 

KPI Name 

Baseline 

as at 30 

June 

2013 

Unit Of 

Measur 

e 

5 Year 
Target 
2016/201 

7 

Annual 

Target 

2013/201 

4 

Quarter 4 
Target as 
at June 
2013/2014 

Quarter 4 
Actual 

June 

2013/2014 

Indicate 

r 

Achieve 
d within 

5% 

toleranc 

e 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

7.1 

Number of 

international 
agreements and 
projects, events 
and protocol 
projects and 
intergovernmental 
agreements and 
projects that 
enhance 

Municipal service 
delivery. 

328 

Number 

435 

190 

190 

186.00 

© 

Achieve 

d - 

2.11% 

variance 

All events could not 
be completed 
because budget 
exhausted. Funds 

from IGR events 
budget were used 
for Mandela 

Memorial 

Met with the 

Flead of Dept to 
ensure that 
budget is strictly 
adhered to. 

7.2 

Customer 

satisfaction based 

on the Sizakala 
Survey 

92.4% 

% 

88% 

satisfactio 

n 

85% 

satisfactio 

n 

85 

91.14 

© 


Increased 

satisfaction due to 

a more intensified 
training 
programme for 
staff and the 
regular meetings to 
improve overall 
performance. 

Filling of vacant 
senior 

management 
positions have also 
enhanced stability 



88 


91 


Plan 7 :Good Governance and Responsive Local Government 


Plan Owner: Sipho Cele 


Index 

KPI Name 

Baseline 

as at 30 

June 

2013 

Unit Of 

Measur 

e 

5 Year 
Target 
2016/201 

7 

Annual 

Target 

2013/201 

4 

Quarter 4 
Target as 
at June 
2013/2014 

Quarter 4 
Actual 

June 

2013/2014 

Indicate 

r 

Achieve 
d within 

5% 

toleranc 

e 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

7.3 

Number of 

interventions to 

encourage 
effective public 
participation in 
Council activities 

Baseline 

unit of 

measure 

changed 

Number 

693 

693 

693 

877 

© 


Meeting of ward 
committees was 

called to sensitise 
them of the impact 
of none 
attendance; 
Additional 
temporary staff 
were hired; the 
unit was 
responding to 
some of the 

incidents as 
identified per 
wards; IDP and 
Budget Hearings 
were also held with 

Business Chamber 



89 


92 


Plan 7 :Good Governance and Responsive Local Government 


Plan Owner: Sipho Cele 


Index 

KPI Name 

Baseline 

as at 30 

June 

2013 

Unit Of 

Measur 

e 

5 Year 
Target 
2016/201 

7 

Annual 

Target 

2013/201 

4 

Quarter 4 
Target as 
at June 
2013/2014 

Quarter 4 
Actual 

June 

2013/2014 

Indicate 

r 

Achieve 
d within 

5% 

toleranc 

e 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

lA 

No. of 

communication 

tools maintained 
and developed in 
line with the 
Adopted 
Communication 
Strategy and 

Policy in order to 
provide facilities 
for the 

Municipality to 
communicate 
internally and 
externally 

8 

Number 

12 

Communi 

cation 

tools 

maintaine 

d 

10 

Communi 

cation 

tools 

maintaine 

d and 
developm 
ent of 1 

tool 

10 

9.00 

@ 

Not 

achieve 

d - 10% 

variance 

The tenth 

communication 
tool, workplace 
magazine, is being 
revamped 

Revamp process 
is underway and 
will be finalised 
during the first 
quarter 2014/15 


90 


93 


Plan 7 :Good Governance and Responsive Local Government 


Plan Owner: Sipho Cele 


Index 

KPI Name 

Baseline 

as at 30 

June 

2013 

Unit Of 

Measur 

e 

5 Year 
Target 
2016/201 

7 

Annual 

Target 

2013/201 

4 

Quarter 4 
Target as 
at June 
2013/2014 

Quarter 4 
Actual 

June 

2013/2014 

Indicate 

r 

Achieve 
d within 

5% 

toleranc 

e 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

7.5 

(a) Number of 
workshops 
conducted to 
promote staff 
awareness of the 
systems and 
mechanisms 

available to 

combat 
corruption and 
unethical 

behaviour and the 

extent to which 
the systems are 
effective 

New KPI - 

no 

baseline 

Number 

70 

60 

60 

67.00 

© 


We are initiating a 
very robust 
campaign on anti- 
fraud and 
corruption 
programmes, this 
might result in 
increased number 
of workshops done. 



91 


94 


Plan 7 :Good Governance and Responsive Local Government 


Plan Owner: Sipho Cele 


Index 

KPI Name 

Baseline 

as at 30 

June 

2013 

Unit Of 

Measur 

e 

5 Year 
Target 
2016/201 

7 

Annual 

Target 

2013/201 

4 

Quarter 4 
Target as 
at June 
2013/2014 

Quarter 4 
Actual 

June 

2013/2014 

Indicate 

r 

Achieve 
d within 

5% 

toleranc 

e 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

7.6 

Percentage of 
forensic 

investigations and 
ombuds cases 
finalized during 
the quarter, 
within the 

standard of 4 
months, to ensure 
an effective 
investigative, 
auditing and 
ombuds service 

60% 

% 

80% of 

complaint 

s (current 

financial 

year) 

finalised 

within set 

standards 

60% of 

complaint 

s (current 

financial 

year) 

finalised 

within set 

standards 

60 

42.50 

@ 

Not 

achieve 

d- 

29.17% 

variance 

Most investigators 
were on Certified 

Fraud Examiners 
(CFE) Training. 

We have 

introduced a 
close monitoring 
programme of 
performance. The 
Chief Officer: 
Investigations has 

one on one 

meetings with all 
investigators to 
monitor 
performance. 

7.7 

Number of 

activities in 
implementation of 
ERM in the 
municipality and 
its entities 

100% 

Number 

325 

69 

69 

87.00 

© 


Enhancements 
were necessary to 
implement new 
reporting strategy 
in 2014/15 year / It 
became necessary 
to have additional 
financial key risk 
indicators for all 
top 10 risks. 



92 


95 


Plan 7 :Good Governance and Responsive Local Government 


Plan Owner: Sipho Cele 


Index 

KPI Name 

Baseline 

as at 30 

June 

2013 

Unit Of 

Measur 

e 

5 Year 
Target 
2016/201 

7 

Annual 

Target 

2013/201 

4 

Quarter 4 
Target as 
at June 
2013/2014 

Quarter 4 
Actual 

June 

2013/2014 

Indicate 

r 

Achieve 
d within 

5% 

toleranc 

e 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

7.8 

Percentage of 
audit projects 
undertaken as per 
approved audit 
plan to determine 
the adequacy of 
internal controls 
designed to 
mitigate against 
identified risks 

148 

(90% as 

KPI name 
changed 
to %) 

% 

100% 

100% 

100 

108.00 

© 


44 additional audits 
(19%) were 
undertaken at the 
request of 

Oversight 
Committees and 

Executive 

Management 


7.9 

Unqualified audit 
in terms of 
performance 
information 

100% 

% 

Unqualifi 
ed - 100% 

Unqualifi 
ed - 100% 

100 

100.00 

© 




7.10 

Interventions 

introduced to 
improve 
productivity, 
efficiency and 
effectiveness 

within the 
municipality 

190 

Number 

88 

Interventi 

ons 

84 

Interventi 

ons 

84 

102.00 

© 


Better re- 
engineering of 
work allowing the 
creation of teams 
under team leader; 
re-engineering 
training and work- 
study training 



93 


96 


Plan 7 :Good Governance and Responsive Local Government 


Plan Owner: Sipho Cele 


Index 

KPI Name 

Baseline 

as at 30 

June 

2013 

Unit Of 

Measur 

e 

5 Year 
Target 
2016/201 

7 

Annual 

Target 

2013/201 

4 

Quarter 4 
Target as 
at June 
2013/2014 

Quarter 4 
Actual 

June 

2013/2014 

Indicate 

r 

Achieve 
d within 

5% 

toleranc 

e 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

7.11 

Implementation of 
IT initiatives to 
improve 
efficiencies, 
effectiveness & 
accountability and 
eliminate wastage 
of resources 

79% 

% 

100% 
implemen 
tation of 

all 

projects 
in the ICT 
strategy 
that have 
a 5 year 
or less life 

span 

Implemen 
tation of 

75% of all 

projects 

contained 

in the 

business 

plan 

100 
(Annual 
target of 
75% means 

75% of the 

overall 

business 
plan targets 

are 

complete. 

When 

these 
projects are 
detailed in 
the SBDIP, 
the average 
target is 
100%, 
hence Q4 
target = 
100%) 

93% 

@ 

Not 

achieve 

d - 7% 

variance 

One subproject 
(COBIT 5 
adaptation) was 
not completed due 
to resource 
constraints; 2 
subprojects were 
not completed - 
one delayed due to 
SCM delays and the 
other delivery of 
equipment 
happened late and 
were also delays 
due to Telkom; 

Delay on one of the 
subprojects due to 
an appeal on the 
award; 4 
subprojects were 
not completed due 
to various - a 
separate report for 
each available as 
part of the 
evidence. 

Project will be 
completed as part 
of theCGICT 
project; Projects 
still to be 
completed; Will 
await the appeal 
process; 
Improvement 
measures to be 
part of the 
separate reports 
on each project 


94 


7.12 

Implementation of 

100% 

% 

70% 

100% 


identified 



implemen 

implemen 


systems, policies, 



tation of 

tation of 


events and 



7 

5 


services to 



identified 

identified 


promote the 
interface between 
Council, the 
Administration 
and the Citizenry. 



projects 

projects 


97 


100 


@ 

Not 

The policy has not 

To follow-up on 

achieve 

been adopted as yet , 

policy approval. 


d - 16% 

Ineffective part - 

The City Stars 


variance 

poor minute taking 

Awards event for 


skills of the Ward 

2014/2015 will use 



Committee 

old process whilst 



Secretariat 

awaiting for 



(Community 

approval of the 



Mobilisers) ongoing 

Rewards and 



coaching and 

Recognition Policy; 



mentoring has been 

Continuous 



difficult as the staff 

interaction with the 



members concerned 

Cluster 



report to the 

Management. 



Community 

Improve the 



Participation & 

efficiency of Ward 



Action Support and 

Committees re - 



have not been 

clarification of roles 



submitting minutes 

and responsibilities 



directly to the Ward 

of the stakeholders 



Committee Branch. 

providing support 



The Branch has 

to Ward 



therefore not been 

Committees and 



interacting directly 

the revision of the 



with the authors of 

Ward Committee 



the minutes. 

Process Flow. 


95 


98 


Plan 7 :Good Governance and Responsive Local Government 


Plan Owner: Sipho Cele 


Index 

KPI Name 

Baseline 

as at 30 

June 

2013 

Unit Of 

Measur 

e 

5 Year 
Target 
2016/201 

7 

Annual 

Target 

2013/201 

4 

Quarter 4 
Target as 
at June 
2013/2014 

Quarter 4 
Actual 

June 

2013/2014 

Indicate 

r 

Achieve 
d within 

5% 

toleranc 

e 

Reason For 

Variance 

Steps Taken to 

Improve 

Performance 

7.13 

(b) Number of 
workshops 
conducted to 
promote public 
awareness of the 
systems and 
mechanisms 

available to 

combat 
corruption and 
unethical 

behaviour and the 

extent to which 
the systems are 
effective 

New KPI - 

No 

Baseline. 

Number 

70 

60 

60 

57.00 

© 

Achieve 

d - 5% 

variance 

There were fewer 
opportunities to 
present at public 
meetings as a 
result of elections 
during May. 

We have plan for 
workshops to be 
conducted and 

we will ensure 

that we do not 

deviate from the 
plan. 


96 


99 



Plan 8 :Financially Accountable and Sustainable City 



Plan Owner: Krish Kumar 


Index 

KPI Name 

Baseline as 

at 30 June 

2013 

Unit Of 

Measur 

e 

5 Year 
Target 
2016/20 
17 

Annual 

Target 

2013/2014 

Quarter 4 
Target as at 
June 

2013/2014 

Actual 

June 

2013/20 

14 

Indicator 

Achieved 
within 5% 
tolerance 

Reason For 

Variance 

Steps Taken 
to Improve 
Performanc 

e 

8.1 

The 

percentage of 
the 

municipality's 
capital budget 
actually spent 
on capital 
projects in 
terms of the 
municipality's 
integrated 
development 
plan 

81% 

% 

100 

90 

90 

89.00 

© 

Achieved 

- 1.11% 

variance 

The under 
spending is 
mainly due to 
savings being 
declared by 

Water on the 

Western 

Aqueduct project 
as a result of 
heritage issues 
and delay in 
approval of 

Water Use 

Licence and late 
start up. In 
addition, there 
were also savings 
from ETA due to 
delays on the 

IRPTN funded 
projects. 

However, all the 
savings are 
committed as 

SCM processes 
were completed 

All savings 
declared are 

committed 

as the SCM 

processes 

were 

completed 
during the 
year. The 
savings will 
be used in 
2014/15 


97 


100 



Plan 8 :Financially Accountable and Sustainable City 



Plan Owner: Krish Kumar 


Index 

KPI Name 

Baseline as 

at 30 June 

2013 

Unit Of 

Measur 

e 

5 Year 
Target 
2016/20 
17 

Annual 

Target 

2013/2014 

Quarter 4 
Target as at 
June 

2013/2014 

Actual 

June 

2013/20 

14 

Indicator 

Achieved 
within 5% 
tolerance 

Reason For 

Variance 

Steps Taken 
to Improve 
Performanc 

e 











during the year. 

The spending will 
on these projects 
occur in 2014-15 
year. Although 
the spending is 
89.28%, the 
overall spending 
including housing 
top structure is 
108.97% if 
compared to the 
originally 
approved budget. 
The top structure 
was reclassified 
at year-end in 
terms of the 
accounting 
requirements. 
Hence, the 
spending is 
reflected as 

89.28% instead of 

108.97%. 



98 


101 



Plan 8 :Financially Accountable and Sustainable City 



Plan Owner: Krish Kumar 


Index 

KPI Name 

Baseline as 

at 30 June 

2013 

Unit Of 

Measur 

e 

5 Year 
Target 
2016/20 
17 

Annual 

Target 

2013/2014 

Quarter 4 
Target as at 
June 

2013/2014 

Actual 

June 

2013/20 

14 

Indicator 

Achieved 
within 5% 
tolerance 

Reason For 

Variance 

Steps Taken 
to Improve 
Performanc 

e 

8.2 

Issue 2 

Supplementar 
y Rolls per 
year thereby 
exceeding the 
MPRA 

requirement 
of issuing 1 
supplementar 
y roll per year 

6 

Supplemen 
tary Rolls 

Number 

2 

Supple 

mentary 

Rolls 

2 

Supplementa 
ry Rolls 

2 

5.00 

© 


Over- 
achievement is a 
consequence of 
backdating of 
entries into the 

2008 GV where 
this is applicable 
ito Sec78 (4) of 
the Act. This 
practice is likely 
to cease with 

next 

Supplementary 

release. 

N/A 

8.3 

Optimal 
availability of 
fleet vehicles 
(excluding 
buses) 

95.70% 

% 

90.00 

90.00 

90 

95.00 

© 


The actual for Q4 is 
95%, which is which 
is achieved due to 
effort employed at 
monitoring and 
managing the turn 
around time for 

vehicles at 
workshops. 

Meetings with the 
workshop 
managers are held 
every Friday. 



99 


102 



Plan 8 :Financially Accountable and Sustainable City 



Plan Owner: Krish Kumar 


Index 

KPI Name 

Baseline as 

at 30 June 

2013 

Unit Of 

Measur 

e 

5 Year 
Target 
2016/20 
17 

Annual 

Target 

2013/2014 

Quarter 4 
Target as at 
June 

2013/2014 

Actual 

June 

2013/20 

14 

Indicator 

Achieved 
within 5% 
tolerance 

Reason For 

Variance 

Steps Taken 
to Improve 
Performanc 

e 

8.4 

Optimal 
availability of 
bus fleet 

94.60% 

% 

90.00 

90.00 

90 

95.00 

© 


The actual for Q4 is 
95%, which is 
achieved due to 
effort employed at 
monitoring and 
managing the turn 
around time for 

buses at 
workshops. 

Meetings with the 
bus manufacturers 
are held every 

Friday morning. 


8.5 

Outstanding 

Service 

Debtors to 

Revenue 

28.14% 

% 

38.00 

38.00 

38 

26.2 

© 




8.6 

Debt Coverage 
Ratio (No. of 
times) 

12.35 

Number 

of Times 

15 

11 

11 

11.10 

© 




8.7 

Cost Coverage 
Ratio (No. of 
Times) 

4.10 

Number 

of Times 

2 

2 

2 

4.70 

© 




8.8 

Gearing Ratio 
(Debt to 
Revenue) 

40.60 

% 

40 

45 

45 

39.00 

© 


Over-achieving as 
loan of R1.5bn 
only received at 
year end 



100 


103 



Plan 8 :Financially Accountable and Sustainable City 



Plan Owner: Krish Kumar 


Index 

KPI Name 

Baseline as 

at 30 June 

2013 

Unit Of 

Measur 

e 

5 Year 
Target 
2016/20 
17 

Annual 

Target 

2013/2014 

Quarter 4 
Target as at 
June 

2013/2014 

Actual 

June 

2013/20 

14 

Indicator 

Achieved 
within 5% 
tolerance 

Reason For 

Variance 

Steps Taken 
to Improve 
Performanc 

e 

8.9 

Report from 
Auditor 

General 

Unqualified 

audit 

report 

% 

Unqualif 

ied 

audit 

report 

Unqualified 
audit report - 
100% 

100 

100 

© 




8.10 

Aligning SCM 
Processes to 

ISO 9001: Gap 
analysis; 
assessment & 

verification 
report; and 
publicity to be 
done 

85 

% 

100 

100% - 1. 
Complete 
plan; 2. 
Undertake 
workshops; 

3. Review 
results; 4. 
Implement 
recommenda 
tions; 5. 
Produce final 
report; and 

6. Publicity 

100 

45.00 

@ 

Not 

achieved 

55% 

variance 

Delays in 
obtaining CIPS 
report 

Creation of 

multiple 

work 

streams to 
speed up 
process 

8.11 

Implementatio 
n of a Web- 

enabled 

Procurement 
System (JDE 

SSS) for both 
stock and non- 
stock items 

30 

% 

100 

100% 

implementat 
ion of the 
system for 
stock and 

non-stock 

items 

100 

100 

© 





101 


104 



Plan 8 :Financially Accountable and Sustainable City 



Plan Owner: Krish Kumar 


Index 

KPI Name 

Baseline as 

at 30 June 

2013 

Unit Of 

Measur 

e 

5 Year 
Target 
2016/20 
17 

Annual 

Target 

2013/2014 

Quarter 4 
Target as at 
June 

2013/2014 

Actual 

June 

2013/20 

14 

Indicator 

Achieved 
within 5% 
tolerance 

Reason For 

Variance 

Steps Taken 
to Improve 
Performanc 

e 

8.12 

Maintain an 

overall 

payment rate 
of Cash over 
Monthly 
billing at 95% 

103.41 

% 

95 

93.75 

93.75 

104.84 

© 


Stringent credit 
control and debt 

collection 

measures 

undertaken. Also 

used in service 

trainees to follow 
up on debts that 
are less than 90 
days outstanding. 


8.13 

(a) Monitoring 
and reporting 

on 

organisational 
procurement 
plans for top 

150 Capital 
Budget line 
items 

New KPI - 

No 

Baseline. 

% 

100% 

100% 

100 

100.00 

© 




8.14 

Undertake 

cluster asset 

management 

initiatives 

New KPI - 

No 

Baseline. 

% 

100% 

Completed 

asset 

maintenance 

and 

verification 

exercises. - 

100% 

100 

100.00 

© 





102 


105 



Plan 8 :Financially Accountable and Sustainable City 



Plan Owner: Krish Kumar 


Index 

KPI Name 

Baseline as 

at 30 June 

2013 

Unit Of 

Measur 

e 

5 Year 
Target 
2016/20 
17 

Annual 

Target 

2013/2014 

Quarter 4 
Target as at 
June 

2013/2014 

Actual 

June 

2013/20 

14 

Indicator 

Achieved 
within 5% 
tolerance 

Reason For 

Variance 

Steps Taken 
to Improve 
Performanc 

e 

8.15 

Implementatio 
n of the 

Durban Energy 
Office 

programmes 

100% 

% 

100% 

100% 

implementat 
ion of 

programmes 

100 

100.00 

© 




8.16 

Implementatio 
n of the INK 

IBM 

programme 

50% 

% 

100% 

100% 

implementat 
ion of all 
projects 

100 

100.00 

© 




8.17 

(b) Percentage 
implementatio 
n of 

procurement 
plan and 
monitoring 
thereof for 

SCM managed 
contracts 

New KPI - 

No 

Baseline. 

% 

100% 

100% 

100 

100.00 

© 





103 


106 

CHAPTER THREE - SERVICE DELIVERY PERFORMANCE 

3.1 INTRODUCTION 

A good indicator of the level and success of service delivery is the capital spend of an organization and in 
this regard eThekwini Municipality has proven to be a front runner for many years including this 2013/2014 
reporting year. That service delivery is one of the City's highest priority is evidenced by our City Manager's 
decision to personally chair the weekly service delivery and the top 150 capital project meetings. The 
capital expenditure was a whopping R4.201 billion and expressed as a percentage is 89% of the adjusted 
2013/2014 capital udget. 

3.2 WATER PROVISION 

Water and sanitation services are provided to domestic consumers, institutions, businesses and industries. 
The capacity to provide these services effectively and efficiently is a critical component in the delivery of 
sustainable basic services, for the improvement of a healthy living environment and in the support of 
economic development. 

With this in mind, an achievable and worthwhile goal, almost always requires considerable effort and 
commitment. At eThekwini a good indication of keeping to these milestones of delivering, quality, efficient 
services can be found in the status of the Blue and Green Drop Annual Reports. The reports culminate in all 
departments in our organisation working together as a team towards sustaining and achieving a common 
goal, which is the attainment of service delivery excellence. The water is of a very high quality and therefore 
the City is one of the few cities in the world where it's safe to drink water from the tap (achievement of 
Blue Drop Status). 

Non-Revenue Water (NRW) 

The Non-Revenue Water (NRW) Reduction Program enjoyed mixed results in the 2013/14 financial year. 
The losses in a typical metropolitan water network will rise by approximately 2% per annum, due to 
systematic attrition and the natural rate of rise of leakage. The continuation of long awaited large scale 
NRW programme that was delayed for 18 months due to an appeal process finally commenced in January 
2014. The Department has recognized the risks associated with the SCM processes and has taken steps to 
avoid this happening in the future. 

The volume of NRW deteriorated by 1.9% to 39.20% for the financial year. The largest contributors to this 
situation are the aging infrastructure, illegal connections and vandalism. The outlook for 2013/14 however, 
is positive as the various NRW initiatives are now gaining momentum again. 

The following interventions have been instituted to reach a 2013/2014 target of 37.0%. 

• Lower supply pressure standards from a maximum of 900kpa to 600kpa as well as lower the minimum 
supply pressure from 300kpa to 250kpa. 

• Implement these standards to reduce the average zone pressure from 52m to 42m. 

• Improvements to the Custody Transfer Meters (where water to the value of approximately R 1, 1 billion 
is purchased annually) to international best practice standards. 

• Conduct active leak detection to 4000km of the network. 

• Install meter to all sprinkler and fire connections. 

• Implement the Debt Relief and Amnesty Programme. 

• Actively prosecute consumers found with illegal connections. 

• Replace domestic and non-domestic meters in line with the Asset Management Plan. 

• Improve internal processes to ensure that every consumer is metered, the meter is read and the 
consumer is billed. 

Some of the strategic directions and programmes that eThekwini Water and Sanitation Unit (EWS) is 
currently implementing, are to make use of hydraulic modelling software, real time monitoring of the trunk 


104 I P a g e 



main network and ultimately the reticulatioiVmetwork, documentation of the standard operating 
procedures, job scheduling software to improve efficiencies, electronic capturing of pipeline fault data and 
analysis of the same to provide guidance to the pipe replacement programme and thereby maximise the 
achievable benefits, and participation in the National Municipal Benchmarking Initiative. 

The Department participated in its first DWS "No-Drop" Certification that evaluates key business areas 
(institutional, social, technical and legal proficiency) to help improve the current level of water losses and 
NRW in municipalities. Although official results have not been released, it is believed that the score given 
will be above 80% (Good Status - Improve where gaps identified to move to Excellent) 

The Centre of Expertise (COE) programme in maturing and piloting new technologies and processes and is 
already disseminating results and experiences to other Metros. A component of the COE programme also 
focuses on staff training based on the 'Train the Trainer' concept and this will help up-skill the staff at EWS. 

The above will assist EWS fulfil its mandate efficiently in order to provide world class services to the 
residents of the municipality. 


Year 

NRW Volume 
(kl/day) 

NRW by 

Volume % 

2011/2012 

308 122 

35.4 

2012/2013 

325 024 

36.9 

2013/2014 

358 777 

39.20 


Table 3.2.1 Loss of revenue due to water loss 


Table 3.2.2 Water Service Delivery Levels 

Households 

Households 

Households 

Households 

Description 

2010/2011 

2011/2012 

2012/2013 

2013/2014 

Actual No 

Actual No 

Actual No 

Actual No 

Water: (above min level) 





Piped water inside dwelling (standard water 
connection) 

596,511 

613,548 

613,548 

613,548 

Piped water inside yard (but not in dwelling) 
supplied 

43,881 

45,520 

45,909 

47,473 

Using public tap (within 200m from dwelling) 
supplied 

211,999 

213,382 

214,957 

215,932 

Other water supply (within 200m) 





Minimum Service Level and Above sub-total 

852,391 

872,450 

874,414 

876,953 

Minimum Service Level and Above Percentage 

93.4% 

92.23% 

94,45% 

92,71% 


105 I P a g e 





Table 3.2.3 Water Service Deliverv Levels 

lUO 

Households 

Households 

Households 

Households 

Descriotion 

2010/2011 

2011/2012 

2012/2013 

2013/2014 

Actual No 

Actual No 

Actual No 

Actual No 

Water: (below min level) 





Below Minimum Service Level sub-total 

60,067 

73460 

71,496 

68,957 

Below Minimum Service Level 

Percentage 

6.6% 

7.7% 

7.56% 

7.3% 

Total (backlog) * 

60,067 

73460 

71,496 

68,957 

Total number of units 

912,458 

945910 

945,910 

945,910 

* - Includes informal settlements 





Households - Water Service Delivery Levels 
below the minimum 

Households 

Households 

Households 

Households 

Description 

Actual No 

Actual No 

Actual No 

Actual No 

Formal Settlements 

495,018 

519435 

519,435 

519,435 

Informal Settlements/Backyard 

Shacks/Rural 

417,440 

426475 

426,475 

426,475 

Total households 

912,458 

945910 

945,910 

945,910 

Households below minimum service level 

60,067 

73460 

71,496 

68,957 

Proportion of Informal households below 
minimum service level 

14.4% 

17.22% 

16.76% 

19,62% 


The three largest water capital projects were: 

Western Aqueduct 

This aqueduct is vital to significantly increase the capacity of the bulk water supply to the western and 
northern areas of eThekwini. Phase 1 has been completed at a cost of some R 150 m. 

Phase 2 from Inchanga to Ntuzuma Reservoir N5 has been unbundled into separate contracts in accordance 
with fiscal year budget allocations. Construction has commenced on the: 

• Inchanga to Alverstone Nek steel pipeline section at a cost of R 120m, with estimated 
completion April 2015 

• Alverstone Nek to Ashley Drive steel pipeline section at a cost of R 150m, with estimated 
completion April 2015. 

• Ashley Drive to Ntuzuma Reservoir 5 steel pipeline section at a cost of R 370m, with an 
estimated completion April 2017. 

• Ashley Drive Break Pressure Tank at a cost of R 50m with an estimated completion June 
2015. 


106 I P a g e 




109 


Table 3.2.4 Water Service Policy Objectives taken from IDP 

Objectives 

Outline Service Targets 

2010/2011 

2011/2012 

2012/2013 

2013/20 

14 

Indicators 

Actual 

Actual 


Actual 

Service 0bjective(2009/2010 Actual now records delivery which for the first 
time is based on the revised count of consumer units (totalling 912458 CUs) 
as conducted on the 2007 photography and now to be adopted by all service 
units as the total eThekwini Customer Base) 




Backlog 

The backlog of the number of consumer units 
provided with access to a free basic level of potable 
water either by means of on indiv. Hh yard supply 
(ground tank or metered flow limiter connected to a 
yard tap) or, for informal settlements, by a 
standpipe within 200m) 

60,067 

73460 

71,496 

68,957 

Delivery 
of free 
basic 

water 

The number of consumer units provided with access 
to free basic level of potable water either by means 
of an indiv. Hh yard supply (ground tank or metered 
flow limiter connected to a yard tap) or, for informal 
settlements, by a standpipe within 200m) 

255,880 

347033 

348,997 

351,536 

Free 

Services 

The total number of consumer units with a metered 
full or semi pressure water supply receiving free 
potable water (I.e. consumer units using 9kl or less 
of potable water per month) 

110,665 

146549 

168,277 

168,277 


Northern Aqueduct 

In order to provide the necessary capacity increase in the north, several phases of new construction, as well 
as augmentation of existing pipelines will be required. In addition, existing bottlenecks will be augmented 
as well as new pipelines to ultimately provide a full ring-main system in the north. 

The first phase of the Northern Aqueduct project from Phoenix Reservoir 2 to 
Waterloo/Umhianga/Blackburn Reservoir was awarded in November 2013 at a cost of R 160 million with 
completion scheduled for June 2015. The second phase from Phoenix Reservoir 2 to Duffs Rd will be 
awarded early in the 2014/15 financial year. 

Waterloss 

This is an ongoing project aimed at reducing the water losses in eThekwini. It carries a three year budget 
of R 185 million. Pressure management, replacement of aging infrastructure, leak detection and the 
installation of more accurate metering are some of the methods being applied. There are no variations 
anticipated. 


107 I P a g e 




no 

3.3 WASTE WATER (SANITATION) PROVISION 
INTRODUCTION 

EWS is not only responsible for the provision of drinking water, but also for the collection and treatment of 
wastewater produced by the City. A vast infrastructure network of sewers, waste water pump stations and 
wastewater treatment works is employed to achieve this. EWS has also identified the need to provide 
services to the rural areas by providing environmentally friendly and innovative ways of sanitation disposal, 
as well as providing community ablution blocks within informal settlements. This ensures that all people 
from all walks of life have access to at least the basic level of service. 


Table 3.3.2 Waste Water (Sanitation) Service Policy Objectives taken from IDP 


Objectives 

Outline Service Targets 

2010/2011 

2011/2012 

2012/2013 

2013/2014 

Indicators 

Actual 

Actual 

Actual 

Actual 

Service Objective (2009/2010 Actual now records delivery which for the first time is based on the revised count 
of consumer units (totalling 912458 CUs) as conducted on the 2007 survey and now to be adopted by all service 
units as the total eThekwini Customer Base) 

Delivery of 
free basic 
sanitation 

The number of consumer units provided 
with access to free basic level of sanitation 
either by means of a UD toilet, an existing 
VIP or, for informal settlements, by a 
toilet/ablution block within 200m 

166,982 

162167 

170,476 

171,453 

Backlog 

The backlog of the number of consumer 
units with access to a FREE basic level of 
SANITATION by means of UD toilet, an 
existing VIP or, for informal settlements, 
by a toilet/ablution block within 200m 

209847 

226557 

218,248 

182,271 

Free Services 

The number of consumer units with access 
to a Municipal sewage disposal system 
receiving free sanitation (that is, 
consumer units with a metered, full or 
semi- pressure water supply using 9KI or 
less of potable water per month) 

Volume 

based 

sewage 
disposal 
charges 
introduced 
from 1 July 
2010 

Volume 

based 

sewage 
disposal 
charges 
introduced 
from 1 July 
2010 

149,776 

149,776 


108 I P a g e 




Ill 


Table 3.3.1 Sanitation Service Delivery Levels 

Description 

2010/2011 

2011/2012 

2012/2013 

2013/2014 

Actual No 

Actual No 

Actual No 

Actual No 

Sanitation/sewerape: (above minimum level) 





Flush toilet (connected to sewerage) 

498,341 

449,661 

449,661 

449,661 

Flush toilet (with septic tank or package plant) 

37,288 

107,525 

107,525 

107,525 

Urine Diversion (UD) 

92,301 

79,049 

80,083 

81,335 

Pit toilet (ventilated) 

40,000 

35,000 

35,000 

35,000 

Other toilet provisions (above minimum service level) 
(ablution blocks) 

34,681 

48,118 

55,393 

90,118 

Total households above minimum level 

702,611 

719,353 

727,662 

763,639 

Sanitation Backlog 

209,847 

226,557 

218,248 

182,271 

*Total number of households including informal 
settlements 

912,458 

945,910 

945,910 

945,910 

Percentage below minimum level 

23% 

23.95% 

23.07% 

19.27% 






Percentage above minimum level 

77% 

76.05% 

76.92% 

80.73% 


3.4 ELECTRICITY PROVISION 
INTRODUCTION 

Electricity services are provided to more than 700000 customers within the city and surrounding areas. The 
aim of the Unit is to provide electrical services to all sectors of the community and provide energy solutions 
that promote business growth and enhanced economic stimulation. Over the years the electrical network 
has been progressively expanded to cater for growth and new connections. The statistics below provide an 
indication of customer development within the various sectors, for the past 5 years. 


Total Use 

of 

Electricity 
by Sector 

USE - MWh 



Business 

Street 

lighting 

Industrial 

Residential 

Credit 

Residential 

Prepaid 

Unaccountable 
Electricity losses 

2009/2010 

2,614,548 

41,853 

4,669,853 

2,826,464 

774,715 

5.20% 

2010/2011 

2,921,756 

41,786 

4,582,864 

2,500,569 

789,574 

5.50% 

2011/2012 

2,723,356 


4,666,663 

2,495,936 

826,397 

5.80% 

2012/2013 

2,367,758 


4,781,979 

2,680,118 

819,810 

5.85% 

2013/2014 

2,263,456 


4,688,943 

2,644,042 

840,892 

6.11% 



Consumption has been adjusted as a result of account estimations 


Re-adjusted as a result of onsite quantification of street lighting 


Consumption has been adjusted as a result of account estimations 


109 I P a g e 



112 


Household Electricity Connections 


400000 

350000 

300000 

250000 

200000 

150000 

100000 

50000 

0 



2008/20092009/20102010/20112011/20122012/20132013/2014 


■ Electricity - Conventional 

■ Electricity - Prepaid 


Electricity Service Delivery Levels 

Households 

Description 

2009/2010 

2010/2011 

2011/2012 

2012/2013 

2013/2014 

No. 

Actual 

No. 

Actual 

No. 

Actual 

No. 

Actual 

No. 

Actual 

Total number of households that 
have electricity 

616948 

630021 

627900 

653340 

671123 


Households 


2011/20 

2012/1 

2013/14 

Description 

12 

3 


Actual 

Actual 

Actual 


No. 

No. 

No. 

Total households 




Total households 

945910 

945910 

945910 

Households not receiving Electricity 

318010 

292570 

274787 

Proportion of households without electricity 

33.6% 

30.9% 

29% 


110 I P a g e 










113 


eThekwini Key Performance 
Indicators 

Baseline 

12/13 

Annual 

target 

13/14 

5 Year 
target 

Means of 
Verification 

Measures 

taken to 
improve 
performance 

Status as 

at 30 June 

2014 

The backlog of ELECTRICITY 
connections to consumer units 
(includes housing backlog and un- 
served rural consumer units) 

290393 

280448 

276448 

Actual 

Households 

connected 
captured in Ellipse 

Housing delivery 
dependent 

274 787 

The number of consumer units 
provided with new prepaid 
ELECTRICITY connections 

captured, including housing and 
rural consumer units 

9986 

12300 

40000 

Actual 

connections 

recorded on the 
Ellipse 

Housing delivery 
dependent 

14770 

The number of consumer units 
provided with new conventional 
ELECTRICITY connections 

1069 

700 

5000 

Actual 

Connections 
Captured in Ellipse 

Housing delivery 
dependent 

813 


Performance overall 

The close of the 2013/2014 financial year was action packed for the Unit, as during this time the Unit was 
forced to deal with rotational load shedding in order to stabilise the electricity grid. Load shedding not only 
brings about inconvenience to customers; it also contributes negatively to the economy and places severe 
pressure on utilities as they now operate in an abnormal network condition. Despite the difficulties and 
shortages of power, the Unit was able to continue with its service delivery obligations to the citizens of 
Durban. 

The National Energy Regulator of South Africa (NERSA) allowed Eskom an average tariff increase of 8% for 
the year under review. In line with this, eThekwini Electricity was able to implement an average tariff 
increase of 5.5 %. Due to these increases, the annual increase for electricity purchases increased to R 6.3 
billion and our income grew to R 9.6 billion, leaving an approximate budget of R 3.3 billion to fund the 
operating expenses. 

An overall decrease in consumption was seen when compared to 2013/2014. This can be contributed to 
the economic slowdown of South Africa. 

Our electrical loss figures are estimated to be in the region of 6.11 %, this lies well in the norm which ranges 
from 5.6 % to 12 %. These losses are attributed to technical and non-technical losses, for which mitigation 
programmes have been implemented to assess and reduce these losses. The 'Electrification of Rural and 
Informal Settlements' programme is in full effect and in an increase of new prepaid customer connections 
has already been observed. This will hopefully result in a reduction of our non-technical losses. 

EThekwini Electricity currently has 2278 employees, which serve the 723 593 customers in eThekwini. The 
Unit's staff receives continuous training through our Work Skill Portal (WSP) to ensure all our staff is 
adequately prepared and competent in performing their duties in a professional and dignified manner. 

In summary, despite the many challenges faced by the Municipality, strategic leadership is the key success 
factor in steering the Unit in the provision of a reliable and effective energy service to its customers. 


Ill I P a g e 
































114 


3.5. Waste Management 

DSW had another momentous year comprising of both successes and challenges. One of the highlights was 
the construction of the Lovu Landfill Site which has been finally completed and was officially launched on 
the 5*^ June 2014. In addition, the DSW Engineering team won the SAICE Branch Award for Excellence in 
Civil Engineering for the year 2014. 

The short term objectives for the year have been achieved and the Unit is well placed to achieve its long 
term objectives. DSW is once again proud to report a betterment against budget of R67 m for the year 
under review. This was achieved through stringent cost control, delays in appointing new contractors for 
the Hostels and new areas and higher income generated. Strong competition from private enterprise 
continues to challenge DSW's market share in the waste industry. Despite these challenges the Department 
exceeded its budgeted income target by R6.4m benefiting significantly from increased landfill revenue due 
to the closure of Wasteman's BulBul Road site. All current backlogs were cleared and 100% service delivery 
was achieved by the Unit. 

MAJOR DEVELOPMENTS: 

SERVICE DELIVERY: 

A once a week refuse removal service is provided to households, both formal and informal. All backlogs 
were cleared based on the current analysis to previously non-serviced areas. New dwellings/informal 
settlements are continually identified and creates a moving target which will be addressed in the new year. 
All major streets are cleaned on a daily basis and the CBD streets are swept 3 x day. High pressure washing 
of streets and pavements takes place at night, particularly in all hot spot areas within the city. Freeways 
and national roads within EMA are cleaned with Mechanical Sweepers on a planned schedule. DSW has 
engaged 405 Community Based Contractors (previously 372) and 23 Major contractors to provide domestic 
refuse collection and litter picking in their contracted areas. The annual total spend on the Township 

Contractors amounts to R94 017 084 generating employment for 1215 people within the community. 


Table 3.5.1 Solid Waste Service Delivery Level 


Description 





Households 

2009/2010 

2010/2011 

2011/2012 

2012/2013 

2013/2014 

Actual No. 

Actual No. 

Actual No. 

Actual No. 

Actual No 

Solid Waste Removal: (Minimum 






level) 

Removed at least once a week 

1433914 

1594161 

1670392 

945910 

945 910 

Solid Waste Removal: (Below 
minimum level) 






No rubbish disposal 

Nil 

Nil 

Nil 

Nil 

Nil 

Total number of households 

1433914 

1594161 

1670392 

945910 

945 910 

Breakdown: 






Formal Settlements - households 

903562 

907174 

945910 

524582 

524 581 

Informal Settlements -households 

530352 

686987 

724482 

421328 

421 329 


The figures are based on the new audited scorecard outcome. 


112 I P a g e 




115 


MAJOR CAPITAL PROJECTS 


Major developments during the year include the Electron Road Transfer Station, which is now planned to 
be commissioned in September 2014. 


LOVU LANDFILL SITE: INFRASTRUCTURE DEVELOPMENT AND CELL 

PROJECT OVERVIEW 

The construction of the Lovu Landfill Site has been finally completed at a cost of R22m and was officially 
launched on the June 2014. Although the official opening took place on the 5*^ June 2014 the site opened 
for service on the 1^* July 2014. The site has a footprint of some 52 hectares with a buffer zone of some 190 
hectares. The license for this site will be strictly for the disposal of general waste only. The site is designed 
to accept some 400 tons/day. 



113 I P a g e 


116 


RECYCLING: 


In total DSW have 22 recycling centres that are strategically located allowing easy access to the public. 
Approximately 7.6 % of all waste is being recycled. The three major achievements were the opening of the 
KwaMashu Buy - Back Centre, the establishment of the Hammarsdale Ecological Centre and the Launch of 
the 3'''* Edition Family Edu- Self Booklet. 

LANDFILL GAS PROJECT 

HIGHLIGHTS & ACHIEVEMENTS 


• Hectic Nine 9 is a daily, live magazine show for teens that is broadcast weekdays on SABC 2 at 
4pm. Boasting in excess of 2 million viewers per day. Hectic Nine-9 is SABC 2's flagship youth show. 
DSW was invited to be part of their content for the week of 26**^- 30**^ August. Hectic- Nine -9 
explored what happens to refuse after it is collected by refuse trucks and the recycling that takes 
place at Mariannhill Landfill Site. This was done with the hope of encouraging the viewers to 
become aware of their environment and keeping it clean. 

• On 11 November 2013 the Impumelelo Panel from Cape Town visited the North Coast Road Buy 
Back Centre. The focus was on the Orange Bag Project and DSW Recycling Intiatives. 

• During the year under review our education programme made great strides with 175 broadcasts 
being made. We have scheduled slots on Radio Hindvani and Radio Al Ansaar and regular interviews 
on Vibe FM and Inanda FM. There are many ad hoc interviews on other community radio stations 
in KZN.The free coverage received equates to approximately R1.7m. The value of each broadcast 
is approximately R1500 per minute equating to R22500 per session. 


• In June 2013 DSW Engineering team won the City Stars Innovation Award for the Landfill Gas to 
Electricity Project. 

• In July 2014 DSW Engineering team won the SAICE Branch Award for Excellence in Civil Engineering. 

• Lovu Landfill Site Launch- The construction of the Lovu Landfill Site has been finally completed at a 
cost ofR22m and was officially launched on the 5*^ June 2014. Although the official opening took 
place on the 5**^ June 2014 the site opened for service on the 1^* July 2014. The site has a footprint 
of some 52 hectares with a buffer zone of some 190 hectares. The license for this site will be 
strictly for the disposal of general waste only. The site is designed to accept some 400 tons/day. 


114 I P a g e 




SPECIAL EVENTS: 


Managing Special Events within the municipality has taken on new proportions with a massive 
increase in the number of events/conventions staged within eThekwini area, forcing the unit to increase its 
capacity to successfully manage these events. Some of the major events were: 

• Clean-up Blitz: The project was launched by the Mayor on 2 May 2013. The areas that are tackled 
are collectively identified through various mechanisms, including observations, walk about and 
reporting by members of the public. Once an area has been identified the task team visits the area 
and identify issues to be dealt with. The cleaning and maintenance campaign take place every 
Thursdays and Fridays. The Units / Departments tackles different aspects of their respective 
functions within the identified area in an integrated manner. These will range from planning related 
issues to waste management, to potholes, to lights, buildings and illegal dumping. The objective of 
the campaign is about cleaning and maintaining our city in an integrated manner. 



• SA Clean-up Week: During National SA Clean-up Month 2013, major projects were undertaken 
within the different districts/wards. A very important trend is being noted, less emphasis is being 
spent on Clean-up Campaigns and more projects are geared towards awareness creation. A total 
of 77 projects have been involved in awareness drives and projects were involved in Clean-up 
Campaigns. There was 49 646 volunteers that participated in the programme and 8383 bags 
collected. 

• The Association of Clean Community Trust together with the DSW hosted its Annual General 
Meeting and Awards Ceremony on the 18 June 2014. DSW being a major sponsor of the Trust 
recognized stakeholders for their continued support and contribution towards a healthy 
environment. Businesses, individuals, community organisations and Educational Institutions were 
recognised and awarded for their good work. 


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TRAINING: 



DSW offers various training programmes to government departments both locally and internationally. The 
training focuses on all aspects of waste management involving management of landfills, operations, 
consulting with customers, education and waste minimisation and administration. DSW together with The 
eThekwini Municipality's Municipal Institute of Learning (MILE) partnered to host a three day training 
Master Class on Solid Waste Management. The department hosted over 75delegates. Training was 
provided to the Tanzanian Delegation and various municipalities such as Mandela Bay, Port Shepstone 
Municipality etc. 



EDUCATIONAL PROGRAMMES 


Some of the major highlights on the Education & Waste Minimisation sector include: 

• Educational workshops and training programmes were held for various institutions during the year. 
Waste Minimisation Presentations were conducted to the following municipalities, including, 
Umsunduzi, Zululand, Hibiscus Coast, Umzinyathi and Umzumbe. 

• Reading Promotion Competition- This competition was initiated by DSW South and South libraries 
in 2012 since then the programme was rolled out in the INK Area. The aim of this Competition is to 
promote learning through creativity and innovation on best practices of waste management 
strategies, whilst libraries instill the love of reading to learners. Our achievement is Waste 
Management and Mimisation education in schools. 

• The landfill site tours programme has been running for 10 years and is a great success. During the 
period of review 38 landfill site tours were conducted with 2099 learners and adults having visited 
the Mariannhill Landfill conservancy site. 

• Madiba Day- In honor of Madiba assistance was given to a family in Umlazi. The day was spent 
spring cleaning and painting the family's dilapidated house. The team also planted the vegetable 
garden. The objective was to uplift the home. Staff set a minimum financial contribution payable 


116 I P a g e 


by each staff member. In addition to th-rs-sfaff managed to secure sponsorships for groceries, paint, 
seeds, clothing and tools for the family. 

• Hammarsdale Eco Centre- The period under review saw a significant development in the use of the 
centre. A sound management structure has been put in place and the format of visits has been 
developed. The centre held a number of Teacher Workshops and trained a total of 30 teachers. The 
School visits started to increase during the latter part of the second term. To date, about 340 
learners have come through the programme in the period under review. The response has been 
very positive from those who attended. 

• Recycling Day/ Edu-Self Launch- on the 20*^ September 2013 DSW celebrated Recycling Day and 
launched the family Edition of Edu-Self. The event was held at Queensburgh Civic Centre and 
received over 50 guests. Communications was present on the day to cover the vent. The Edu-Self 
will be distributed to 1 million residents within eThekwini 2014. 


Strategic & New Developments 



2012/13 

2013/14 

Numbers of Trade Customers 

15549 

15 419 

Numbers of Industrial customers 

936 

882 

Number of landfill Customers 

17131 

20 522 

Number of garden Customers 

4917 

4753 

Number of Blue Bags sold 

143649 

143 649 

Number of Orange Bags distributed 

997020 

997020 

Total Value of income 

R232m 

R247.2m 

Number of Community Based Contractors 

405 

405 

Number of Major Contractors 

23 

23 

Number of Staff employed 

2018 

2018 

Total Value of Contracts 

R172.4 

R172.4m 

Number of Formal households serviced 

524582 

524 582 

Number of informal households serviced 

421328 

421328 

Number of External Training (MILE Program - 
Solid Waste Master Class) 

1 

2 

Number of awards received 

2 

2 

Number of staff attended WSP Training 

838 

869 


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120 



2012/13 

2013/14 

Number of Staff Awarded Assisted education 
training 

58 

47 

Total Cost of Staff Training 

R167550 

R710 492.48 

Total % of Recycled waste 

7.9% 

7.6% 

Number of schools programmes 

1648 

1840 

Number of education programmes 

121420 

123470 

Number of clean up campaigns 

540 

560 

Total volumes of waste landfilled 

1 466 037 tons 

1, 429, 686 tons 

Number of volunteers /community members 
attended 

49646 

49646 

Number of waste types declassified 

9 

Existing 2 currently under 
review according legislation 


3.6 HUMAN SETTLEMENTS 


INTRODUCTION 

In the 2013/14 financial year the Human Settlements Unit (HSU) faced a number of challenges with respect 
to limited bulk water infrastructure in the Northern and Western regions, however the two new aqueducts 
which are under construction in these regions will assist in increasing delivery in these regions. The HSU 
delivered 6809 new subsidized houses and transferred 917 rental units to tenants. In October 2013 
eThekwini gained level two accreditation, which brings with it the opportunity to develop more capacity 
and improve on delivery. 

In the 2013/14 financial year, significant effort has gone into developing systems and putting in place 
structures that will promote accelerated delivery going forward. The Unit has also been engaging with the 
Provincial and National Departments of Human Settlements in preparation for the Executive Assignment of 
the Human Settlements function from the Province. Administratively, the current challenges are limited 
office space and the need to increase capacity within the Unit. 

The HSU was presented with a number of National and Provincial Govan Mbeki Human Settlements awards, 
including for Cornubia as the Best Priority Project; Namibia Stop 8 as the Best Enhanced Peoples Housing 
Process Project and 1^* Runner-up as the Best Accredited Municipality for Level 2 - Category A. 

Informal settlement upgrade 

The upgrading and development of informal settlements is a major component of this programme, and 
informal settlements are in most instances being upgraded in-situ to avoid the social dislocation which 
occurs when these settlements are uprooted and relocated in more distant locales. The objective is to 
upgrade informal settlements where they are currently located and to achieve this, higher density housing 
options are being implemented^ so as to minimise disruption to communities, to improve overall urban 
efficiencies, and to enhance livelihoods. 


^ Infrastructure provision occupies space, which by implication means less space for housing. If densities do 
not increase to offset this loss of space, then there is a need to re-locate some families to other housing 
projects. 


118 I P a g e 




Certain settlements, however, are located in hararaous areas such as flood plains and in areas of unstable 
geology, and in these instances relocations are necessary. This is dependent on land acquisition, which has 
to go through a statutory process which may result in time delays. 

The housing programme provides an opportunity for associated services such as water, electricity, road 
access, storm water control, sanitation, social facility access, and road naming to be delivered in an 
integrated manner. All housing projects are assessed at the feasibility stage to ascertain the potential for 
development and ensure planning is in line with the City's Spatial Development Plan (SDP). Further, detailed 
planning is undertaken for the purposes of packaging and planning projects for implementation. See figure 
below for housing delivery for the period 1994-2014. 



Figurel: Houses constructed 1994-2013 /14 

With a view to improving Fluman Settlements which are implemented using the Fluman Settlements 
Development Grant (FISDG), Council is implementing improved and innovative ways of providing housing 
that is better suited to the needs of the inhabitants. Innovative new housing forms and urban design 
solutions are being implemented with the objectives of promoting densification, social cohesion, and a more 
sustainable urban form. In terms of the eThekwini Built Environment Performance Plan and the Flousing 
Sector Plan, the cost of addressing the backlog (currently estimated to be approximately 400,000) in housing 
is in the order of R 54 billion. At current delivery and funding levels, this backlog will still not be eradicated 
by the year 2050. 

Approximately 28% of the Municipality's total population of approximately 3.5 million reside in informal 
settlements. Whilst the Municipality can pride itself on a successful and large scale mass housing delivery 
programme, not all settlements can be provided with full services and low income housing in the short term 
due to funding, bulk services availability, and other constraints. Informal settlement residents face a range 
of basic challenges such as access to adequate sanitation, clean and safe energy, and roads. Recurrent shack 
fires are also a constant risk. As a result, a pro-active and broad based programme aimed at providing a 
range of basic interim services to a number of prioritized informal settlements within the Municipality has 
been developed with a view to addressing these basic health and safety issues. The prioritized informal 
settlements are those which are in the Municipality's Flousing Plan but which cannot be provided with full 
services and housing in the short term. The interim services programme will provide a mix of the basic 
interim services which include standpipes, communal ablution blocks, a basic road network and footpaths 
with associated storm water controls, electricity connections, refuse removal, and interventions for fire 
prevention. 

The intention is to deliver rapidly to as many settlements as possible, instead of providing a high level of 
service to only a small number of selected settlements. It is hoped that this programme can be rolled out 
fairly rapidly over a period of approximately five years, but this is subject to the availability of sufficient 
funding and enabling policies. 


119 I P a g e 



The Interim Services programme also looks at-wreader planning issues with the intention of ensuring key 
social facilities such as fire and police stations, clinics, schools, sport fields and community halls are more 
effectively provided. In addition, a sustainable livelihoods programme has been developed where a process 
of participative livelihoods engagement is being planned. The sustainable livelihoods approach strives to 
build stronger community responsibility and 'self-help' as well as to facilitate a better relationship between 
the urban poor and the Municipality. 

The top three priorities are the upgrading/relocation of informal settlements, the transfer of rental stock, 
and the promotion of housing in restructuring zones/mixed use, income areas. 

Limited housing subsidies, increasing development costs, the lack of densification subsidies, as well as long 
processes of project and contract approval are causing the programme to slow down in comparison to 
previous years (see chart and table below),but delivery is now on the upturn, as illustrated by figure 2 
below. 



2009\10 2010\11 2011\12 2012\13 2013\14 


Figure 2: Houses constructed per annum 


Table 3.6.1. : Targets and Deliverv 2010/11 to 2013/14 

Indicators 

Service 

Targets 

2010/2011 

2011/2012 

2012/2013 

2013/14 

Target 

Actual 

Target 

Actual 

Target 

Actual 

Target 

Actual 

Housing Delivery 
(Units) 

New 

houses 

construct 

ed 

8,500 

4,752 

5,000 

3,389 

7,200 

4,181 

7,200 

6809 

Housing - backlog. (Based on 
2007 dwelling count until 2011, 
thereafter 2011 dwelling count 
used. No growth rate factored 
in.) 

355,99 

3 

359,60 

9 

408,271 

408 39 

4 

401 194 

404 192 

396,992 

397,369 

Sale of Rental Stock 

1,000 

1,601 

600 

461 

700 

558 

1500 

917 

New Family Units 

50 

80 

50 

69 

75 

104 

100 

48 

etc. 










120 I P a g e 


123 


The municipality faces a number of challenges in addition to those mentioned above; these are summarized 
in the table below. 


Challenges 

Plans to Overcome Challenges 

Limited available, developable land and adverse 
geo-technical and topographical conditions, e.g. 
steep land, and unstable soils. 

KZN DoHS has requested an increase in the subsidy to 
National DoHS to address these challenges. 

Land invasions once land acquisition commences; 
with intention to jump the queue. 

Socio-political and community issues, e.g. vested 
interests and NIMBY 

Develop more partnerships with communities 

Legislated process, including EIA, planning approvals 
and SCM processes are time consuming 

Procurement schedule linked to budgets, and pipeline of 
projects for MTMTEF 

Need to increase project management capacity 

Discussions with Province for funding and transfer of staff 

Bulk infrastructure in the North and South regions is 
limited and restricts the delivery of houses 

Two major bulk water projects, the northern and western 
aqueducts are under construction and will alleviate the 
situation. 


Land invasion continues to be a major obstacle to housing delivery. The housing programme is constrained 
by the shortage of available, well-located land and competing priorities for this land. Land invaders risk 
their lives when they construct informal dwellings on hazardous land, for example on flood plains and under 
electricity pylons, and environmentally sensitive land has also been affected. Mayor James Nxumalo said 
"Eradicating informal settlements requires a joint effort from all stakeholders and members of the public 
are encouraged to report to authorities when they see people invading land and / or municipal property". 

Rental and social housing 

There is a need for the Municipality to provide some rental accommodation through Social Housing 
Institutions (SHIs) to cater for low income residents who cannot afford market-related rentals. However, 
the Municipality has certain rental stock which, simply stated, creates a liability to the Municipality. In order 
to reduce the financial burden of administering this housing, much of it is being transferred to current 
occupants utilising the Enhanced Extended Discount Benefit Scheme. A further objective of this transfer of 
stock is to create security of tenure for long standing tenants. Prior to transfer, the units are upgraded and 
provided with individual water and electricity meters where necessary. A number of hostels have 
undergone substantial maintenance and rehabilitation work with a view to making them more suited to 
the needs of occupants. The hostels, historically, catered for single male labourers and currently need to 
serve the needs of families, therefore conversion to family units is taking place, with 48 family units being 


121 I P a g e 



constructed in 2013/14. In addition, we have-rwirt a new block in all ten hostels coupled with routine 
maintenance.. It has been a challenge to maintain a consistent rent collection within the hostels due to 
socio-political dynamics that exist. The unit intends to overcome this in a number of ways, namely: engaging 
ward councillors, ward committees, other political formations and other council departments to improve 
the delivery of services to the hostels. Further than this we will embark on a massive campaign to educate 
the tenants about payment of services. 

Social Housing refers to a rental housing option for low to moderate income persons at a scale and built- 
form that requires institutional management by Social Housing Associations. This is provided by social 
housing institutions in partnership with the Municipality. Priority is given to projects in designated 
restructuring zones and strategically located mixed-use areas. Affordable housing is provided by private 
developers on land that the Municipality makes available to meet the objectives of providing housing for 
those who can access a housing loan. Social and affordable housing are effective in accomplishing the 
Municipality's housing objectives of spatial restructuring and economic generation and will contribute to 
economic empowerment, non-racialism and physical and social integration, with 716 units being 
constructed in 2013/14. 


Promoting an Integrated Approach to Human Settlements 

Cornubia is an example of the promotion of integrated Human Settlements. It is the largest phased mega- 
infrastructure Greenfields project in the Province and is a National Priority Project that is Cabinet endorsed. 
It is extremely well located and will provide a range of housing opportunities targeted across various income 
brackets and will cater for low income, affordable housing, social housing, community residential units, and 
high income market which will be developed by the private sector. Thousands of construction jobs are being 
created, and thousands of permanent jobs will be created in the industrial and commercial zones. 

The Pilot Phase - Phase lA consisting of 482 units was completed in the 2013/2014 financial year and 
beneficiaries have been relocated from various informal settlements within the Municipality. Civil 
infrastructure construction for 2186 sites in Phase IB commenced in November 2013. 

Economic opportunities are presently being provided predominantly by the private sector, together with 
industrial/commercial land under the noise zone to be developed by the Municipality as part of Phase 2 of 
the development. The civil infrastructure for 80 ha of light industry in Phase 1 has been completed and land 
has been sold off to end-users, with 2 factories completed and operational. Industrial zones are in close 
proximity and within walking distance to residential areas. Commercial zones will provide the residents with 
their shopping needs in the form of small scale shopping malls and other retail outlets. 

The resident's social needs have been extensively interrogated and schools, clinics, police stations, 
community halls, and sports fields have been planned in a manner that the facilities are clustered and 
shared between users. The design for the first social cluster in Phase 1 has been finalised and this will consist 
of 2 primary schools, one secondary school and a multi-purpose hall. The detailed design of the first primary 
school, as well as the hall, has been completed. 

Public transport is prioritised and an Integrated Rapid Transport Network (IRPTN) route is planned to 
traverse the site and to integrate the surrounding communities. The project has been identified as part of 
the national Strategic Integrated Project (SIP) 2. 

The Cornubia Project received the 2014 National Govan Mbeki Human Settlements Award for being the 
Best Priority Project. 


122 I P a g e 



125 



ii r "! ■ il "< ■■ s r a 'I " s IT n "i “ 1 17 n V4 ■■ ■#= 




I President JG Zuma opened the Cornubia integrated 
human settlement on 6 April 2014. The official 
opening marks a major milestone in a project which 
is planned to create 28 000 housing opportunities. 
43 000 permanent and 387 000 construction jobs 
will be created over the 15 to 20 year development 
period. 

Cornubia Phase lA, officially opened by President JG Zuma on 6 April 2014 



Another initiative of note has been the Sao Paulo- Durban Mentorship Projects. As a result of an MOD 
signed between the World Association of Major Metropolises (Metropolis), the United Cities and Local 
Governments (UCLG), eThekwini Municipality and the City of Sao Paulo, the initiative titled "Mentoring on 
Upgrading Informal Settlements" or more commonly referred to as the "Sao Paulo-Durban Mentorship 
Project" was approved by Metropolis for a period of just over 3 years - from mid 2011 until the end of Dec 
2014. Since Sao Paulo has a longer history and good success stories in delivering at scale and integrated 
settlements, the project will see eThekwini being "mentored" by the City of Sao Paulo over the medium to 
longer term with financial assistance from Metropolis. 

The main goal of the project is for eThekwini to learn from Sao Paulo's experiences of servicing and 
upgrading of informal settlements with a focus on creating new policy through a pilot study. Welbedagt 
East was selected as a pilot project as it met the criteria of being an upgrade project, which provided 
opportunities for densification and creative urban design that could inspire a range of housing typologies, 
public facilities, urban open space and income earning opportunities. 

The expected results are that eThekwini Municipality would be able to accelerate its informal settlement 
and upgrading programmes by adopting new and innovative, integrated, sustainable planning, participatory 
and financing approaches for informal settlements. The intention is to share experiences with other cities 
via the Municipal Institute for Learning (MILE) programme which is a partner with the UCLG Urban Strategic 

123 I P a g e 




Planning Commission, which in turn will work-wth Metropolis to disseminate these learning's and help 
improve the quality of human settlements internationally. Based on the Welbedagt East lessons learnt and 
products achieved, this initiative can be rolled out to other housing projects in eThekwini. 

Key lessons learnt by eThekwini in this partnership have been instrumental in establishing the various work 
streams of the Welbedagt East learning project. Monthly project coordination meetings have been held 
comprising several municipal departments including the academic partner, UNISA Bright Site. The 
coordination meetings provide a unique opportunity for a number of municipal stakeholders to interact 
with each other in achieving project objectives which with otherwise never or very rarely occur on other 
housing projects. The coordination meetings are also critical as a programme is adhered to and feedback is 
provided on budget spend and how additional funding can be sourced to implement the various projects 
identified. 

Some of the projects that have been implemented or being planned include: 

• Establishment of a Social Hub. 

• Construction of the social work offices. 

• Provision of play lot equipment. 

• Development of a sports field. 

• Road improvements, including upgrading of a key intersection as well as implementation of various 
road safety measures to benefit primary school children. 

• Construction of substantially more housing units utilizing innovative housing typologies. 

• Implementation of aquaponics projects as part of a Local Economic Development (LED) initiative. 

• Development of environmental programmes in partnership with communities. 

• Implementation of various social development and educational programmes - such as a careers 
day for school children, establishment of sports clubs, HIV and Aids counseling, and teenage 
support. 



Social Work Offices Under Construction 



Proposed Social Hub 


124 I P a g e 


127 


Contribution to socio-economic development 


eThekwini continues to empower women contractors. Two of the City's major housing projects - 
Kingsburgh West and Umlazi infill - have been awarded to female contractors: Motheo Construction group 
and Zikhulise Cleaning, Maintenance and Transport. Substantial contracts have been signed with female- 
led suppliers of construction materials (AKRT Investments); female subcontractors are also working on the 
R293 rectification project and running Social Housing projects in the City. 




Kingsburgh West 

Mayor James Nxumalo hands over a house to a disabled beneficiary in Inkanyezi 

The Human Settlements Unit has been able to assist some of the City's most vulnerable people. Disabled 
beneficiaries and those living in the most critical situations have been prioritized to receive free housing 
through the Operation SukumaSakhe programme. Homes for the disabled are specially constructed with 
the unique needs of the beneficiary in mind. 


125 I P a g e 


128 



The Freedom Flame tours Flammonds Farm Flousing project, 
where 1800 houses have been delivered to qualifying 
beneficiaries 


The HSU received the following Provincial Govan Mbeki Human Settlements Awards. 


• First place in the Best Informal Settlements Upgrade category for the Umlazi infill Part 5- Trophy 
and Certificate 

• First place for Best Social Housing Project Category for Lakehaven Phase 1-Trophy and Certificate; 

• First place for Best Priority Category for the Cornubia Human Settlements Project -Trophy and 
Certificate; 

• Second position in the Best Community Residential Category for the Klaarwater Hostels-Certificate 
and 

• Second place for the Best Informal Settlement Upgrade Category for the Lamontville-Certificate 


3.7 ENGINEERING SERVICES 

INTRODUCTION 

The Engineering Unit is mandated to provide engineering, buildings and built environmental infrastructure, 
surveying and land information. The Unit consists of an Executive team comprising several support staff 
dealing with strategic issues such as IDMS, Coastal Management, Presidential lead projects and 
infrastructure coordination and seven line departments. 

Roads and Stormwater Maintenance;_Responsible for the daily repairs and maintenance of the tarred and 
gravel municipal road network and sidewalks, as well as the storm-water systems of pipes, open drains and 
canals. 

Coastal, Stormwater and Catchment Management:_Responsible for the design and construction of new 
stormwater drainage and coastal engineering infrastructure as well as determination of flood lines and 
associated development controls within flood plains. 

Roads Provision:_Responsible for the design and construction of road and bridge infrastructure, operating 
the pavement management system and managing the materials testing and geotechnical laboratory. 

Surveying and Land Information: Responsible for Cadastral, Engineering and Sectional Title surveying, 

facilitation of land acquisition for new projects, customised GIS maps, plans and document microfilming as 
well as providing the public with cadastral information and plans. 


126 I P a g e 




129 


Development Engineering: An in-house consultancy dealing with the design and project management of 
new projects for council departments, particularly the provision of housing via the Housing Unit. Regulates 
the standards of municipal engineering services and oversees the quality control of this infrastructure when 
undertaken by private developers. 

Architecture: Responsible for integrated architectural project and maintenance services to all Council 
buildings as well as initiating, facilitating, managing and delivering strategic and catalytic architectural 
projects. 

Infrastructure management^ Responsible for the coordination of the Council's Contractor Development 
scheme, co-ordination of the Infrastructural Asset Management Programme of the City as well as 
programme management of the Municipal Infrastructure Grant (MIG) and Expanded Public Works 
Programme (EPWP). 


Roads and Storm water Maintenance 


3.7.1 ROADS 
INTRODUCTION 

The road network represents a major investment that has been built progressively over a period of time. It 
is a highly visible asset that supports the local economy from a functional perspective in terms of both 
mobility and access. It is by far the single most valuable asset that the council owns with a replacement 
value in excess of RllO billion. 

Routine maintenance 

Routine maintenance is defined as the day-to-day operational activities to keep the asset operating. 

It may consist of planned maintenance activities, but is generally reactive work of a corrective nature that 
is carried out in response to reported problems or defects (e.g. Potholes). Such work is undertaken for the 
purpose of restoring service as well as for mitigating the adverse effect of failure over time. 

Most of the work undertaken by the department is undertaken in response to reported problems, but a 
number of fixed interval initiatives have been implemented for the purpose of ensuring the reliability of 
certain infrastructure. 

Rehabilitation (Preventative Maintenance) 

Through its Pavement Management System the surfaced network undergoes a detailed inspection every 
two years, the data from which generates the rehabilitation programme. The inspection done in 2013 
informs the rehabilitation programme for the 2014/15 and 2015/16 financial years. 

The rehabilitation can range from seals to full reconstruction depending upon the condition of the particular 
road. Extensive use is made of recycling the old road pavement material where this is milled out. The 
Municipality has been at the forefront nationally in promoting new technologies, including Warm Mix 
Asphalt (with less emissions and considerable energy and safety advantages) and High Modulus Asphalt. 

New and Upgraded Roads 

Work ranges from provision of sidewalks, upgrading gravel to surfaced roads, through to freeway/arterial 
road projects. Implementation of major roads projects are informed through the Transport Authority's 
Integrated Transport Plan. 


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Gravel Road Infrastructure 


130 



Total gravel roads (km) 

Gravel roads upgraded to 
surfaced (km) 

Gravel roads graded / 
maintained (Km) 

2010/2011 

1352 

7.5 

1345 

2011/2012 

1345 

12.3 

1333 

2012/2013 

1333 

7.1 

1325 

2013/2014 

1325 

11.6 

1314 


Surfaced Road Infrastructure 



Total surfaced roads 
(km) 

New surfaced roads (lane 
km) 

Existing surfaced roads 
re-surfaced (lane km) 

2010/2011 

5829 

9.6 

515.1 

2011/2012 

6252 

9.3 

273.8 

2012/2013 

6761 

11.5 

334 

2013/2014 

6762 

1.3 

315 


Road Rehabilitation costs 



Road Service Policy Objectives taken from IDP 

Service Objectives 

Outline Service Targets 

2012/2013 

2013/2014 

Service Indicators 


Target 

Actual 

Target 

Actual 

Development of 

municipal roads as 
required 

Upgrading of un-surfaced 
roads to Surfaced 

2.3 km 

7.1 km 

11 km 

11.6 km 


Looking Ahead 

The current road rehabilitation budget allocation was sufficient to keep the overall condition of the 
Municipality's surfaced road network at the 'good' level. The Visual Condition Index (VCI) is currently 79. 
Although the increasing use of recycled materials should help to contain costs, the challenge to keep the 
budget allocation in line with the rising costs of road rehabilitation remains. The erratic supply of bitumen 
continues to be a problem and this has resulted in significant increases in the bitumen price. 

The limited funding to address the upgrade of the formal un-surfaced network to a surfaced standard 
means it is going to take a considerable period of time (80+ years) at the current funding levels. In view of 
this eThekwini Municipality has launched a programme to surface low volume roads at a reduced cost of 
Rlmillion/km versus R6million/km required to surface high volume rural roads. Subject to funding it is 

128 I P a g e 



anticipated surfacing 40 to 60km per annum aHHese low volume roads in rural areas which should start 
to make significant inroads into the un-surfaced roads backlog. 

The Zibambele Programme 



3.8. EThekwini Transport Authority 
Introduction 

The year 2013/14 saw the unveiling of the new name for the City's transport system the IRPTN, which is 
now known as the Go! Durban. Durban joins a number of other cities around the world that use the IRPTN 
systems, such as Curitiba, Singapore and Bogota. Part of the objective of the ETA is to promote transport 
that is universally accessible to the citizens of eThekwini. Go! Durban is identified as one of the key pillars 
that are integral to the stimulation of economic growth now and in the future. 

Initially, citizens will see the development of high quality public transport linkages between Bridge City, 
Durban Central, Pinetown, Umlazi and Umhianga. The aim is to provide seamless transfers across all 
transport modes, by creating ease of access at stations and precincts and by using electronic ticketing and 
providing passenger safety and security. 

Currently the City is busy with the construction of the right of way (ROW) or Bus way between Bridge City 
and Pinetown, which is referred to as Corridor C3 of the network, and is part of phase 1 of the project. We 
are aiming to complete this section by the end of 2015 to be ready for operation early in 2016. 

About the ETA 

Our Vision 

The organisation's vision is to provide and manage a world class transport system with a public transport 


129 I P a g e 



focus, providing high levels of mobility and acee^lbility for the movement of people and goods in a safe, 
sustainable and affordable manner. 

This Vision guides the organisation's activities and enables the setting of relevant and realistic objectives. 
It is aligned to the eThekwini Metropolitan Municipality's vision that: 

"By 2030, eThekwini Municipality will be Africa's most caring and liveable City". 

Our Governance 

The eThekwini Transport Authority (ETA), in accordance with the National Land Transport Act, is governed 
and controlled by a Governing Body that consists entirely of Councillors, which is tasked with steering the 
strategic direction of the organisation. The Mayor is the Chairperson of the Governing Body and there are 
four other appointed Councillors. 

In addition, the Municipal Manager and the Head of the Transport Authority, Mr T Manyathi, sit in at 
Governing Body meetings, but do not have voting powers. The Governing Body elects its own Chairperson 
and Deputy Chairperson from among its members. The Chairperson chairs meetings, and the Deputy 
Chairperson does so in his or her absence. Decisions are made on the basis of one vote per member, with 
the presiding member having the casting vote; the quorum for meetings is two members. 

The ETA Governing Body delegates the day-to- day management of the ETA to the Head of the ETA. The 
eta's core business is managed by the Deputy Heads of the Executive Leadership Team. The Leadership 
Team is led by and reports to the Head of the ETA. 

Management Structure of the ETA 

The Head: Transport Authority of the eThekwini Municipality serves as the Head of the ETA. His role is to 
advance the purpose and objectives of the ETA as specified in the Founding Agreement and in applicable 
legislation, to manage and direct the Transport Executive, and to carry out the instructions of the Governing 
Body. 


The Transport Authority is equipped with a broad range of functions such as regulation of market entry, 
contracting of subsidised services, strategic planning of the transport network expansion, transport 
infrastructure delivery and traffic management. 

Our Programmes 

Our programmes are informed by: 

1) The Integrated Development Plan (IDP) with its three pillars: 

• Plan 2: Economic Development and Job Creation (Developing a logistic plan. City Port Partnership, 
Dube Tradeport implementation strategy); 

• Plan 3: Quality Living Environment (Address Service Backlog, Infrastructure asset management and 
implementation of an effective Public Transport Plan for the City); and 

• Plan 4: Safe, Healthy and Secure Environment (safe from crime in public transport, safe while 
travelling on the road). 

2) National and Provincial Policy and Legislation 

• Provincial Growth and Development Strategy 

• National Public Transport Strategy Action Plan 

• National Land Transport and Traffic Acts. 

Strategic Partnerships 

Key partnerships have been formed with our internal and external stakeholders. 

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133 


These stakeholders participate in our business at different degrees, some to a lesser extent and others in 
our daily business operations. 

The Unit depends on the co-operation of all its partners in order for it to operate efficiently and effectively. 
A good relationship has been established with the following external partners: 

»» National Department of Transport 
»» KwaZulu-Natal Department of Transport 
»» PRASA 
»» SANRAL 

Our partnership with our stakeholders is evident in the work that has been achieved by the Transport 
Authority to date. 

The Transport Authority consists of three Departments namely; 

STRATEGIC TRANSPORT PLANNING 

The Strategic Transport Planning Department consists of three Branches, namely: 

Transport Planning, Public Transport Planning and Road Safety. It is responsible for overall planning of the 
land transport within eThekwini Municipal Area. This includes: traffic modelling and forecasting for the 
entire eThekwini Municipality, freight planning, performing an advisory role on transport policy; 
establishing and maintaining a passenger transport information system, rail planning and planning for 
modal interchanges; and preparing and co-ordinating the implementation of the Road Safety Plan. 


ROAD SYSTEM MANAGEMENT 

This Department is made up of three Branches, namely: Urban Traffic Control, Traffic Engineering and 
Traffic Operations. The Department is responsible for: deploying ITS solutions to assist with the 
management of traffic flows and information dissemination; scrutinizing and commenting on all building 
plans and development application in respect of traffic matters, including access management and road 
geometric standards; and managing all road markings, road traffic information and directional signage as 
well as street name boards, and the installation and maintenance of street furniture including parking meter 
systems, guardrails, bollards, etc. 

PUBLIC TRANSPORT 

The Department has three Branches, namely: Public Transport Services, Public Transport, Infrastructure 
and Public Transport Coordination. This Department is responsible for: the planning and design of Public 
Transport Services, management and delivery of Public Transport Services, awarding and monitoring of 
Service Contracts, integrated ticketing and fare management system; allocation of bus, taxi ranks and stops; 
maintenance of bus and taxi ranks; rationalisation of public transport ranks; Liaison and co-ordination 
between Departments and other Units; and liaison with rail, bus, minibus-taxi and metered taxi operators. 

OUR 2013/2014 HIGHLIGHTS 

29.6 million passengers used the City's scheduled Public Transport Service. 

96 000 commuters used the City's scheduled accessible Public Transport Service. 


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134 


Go! Durban 

Commencement of the Construction of the Right of Way (ROW) on Corridor C3 (Bridge City to Pinetown). 
MUVO SMARTCARD ROLL-OUT 

The full roll-out of the Muvo card to all commuters on the Durban Transport and Mynah bus has been 
completed. 

MUVO SMARTCARD ISSUED 

86 000 Muvo Smart Cards were issued to commuters. 

ROAD SAFETY 

Completion of the 2012-2016 Road Safety Plan. 

PEDESTRIAN SIDEWALKS 

Sidewalks to the value of R18.5 million constructed in support of NMT and Road Safety Programmes. 
NON-MOTORISED TRANSPORT 
Development of the NMT Plan for the City. 

PUBLIC TRANSPORT FACILITIES 

Two taxi ranks were planned, one fully constructed and the other to be completed in 2015. 
MEMORANDUM OF UNDERSTANDING 

A memorandum of understanding was signed with the Minibus Taxi Industry 
TOP GEAR 

Infrastructure delivery for the Top Gear Festival. 

MUNICIPAL BUSES SERVICES DATA 


Municipal Bus Services Data Standard Buses 


DETAILS 

2009/2010 

2010/2011 

2011/2012 

2012/2013 

2013/2014 


Actual 

Actual 

Actual 

Actual 

Actual 

1 

Passenger Journeys 

10480157 

23 862 068 

23 055 288 

22 314451 

26 793 327 

2 

Seats availablefor all Journeys 

16 289 220 

29 011 440 

29 276 220 

29 233 500 

29 595 900 

3 

Average unused Bus Capacity for all Journeys 

36% 

18% 

21% 

24% 

9% 

4 

Size of bus fleetatyear end 

495 

487 

487 

487 

487 

5 

Average no of buses of the road at any onetime 

30 

25 

20 

15 

20 

6 

Proportion of the fleet off the road atany one time 

6% 

5% 

4% 

3% 

4% 

7 

No of bus journey scheduled 

271 487 

483 524 

487 937 

487 225 

493 265 

8 

No of bus journeys cancelled 

4 360 

16400 

13 247 

13 802 

13 088 

m 

Proportion of journeys cancelled 

2% 

3% 

3% 

3% 

3% 


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MUNICIPAL Bul ^^ICES DATA MYNAH BUSES 



DETAILS 

2009/2010 

201072011 

201172012 

2012/2013 

2013/2014 

Actual 

Actual 

Actual 

Actual 

Actual 

1 

Passenger Journeys 

1 061 736 

1431602 

1787423 

1 781 255 

1728699 

2 

Seats availablefor all Journeys 

1181760 

1631860 

1964184 

1943187 

1975656 

3 

Average unused Bus Capacity for all Journeys 

10% 

12% 

9% 

8% 

13% 

4 

Size of bus fleet at year end 

21 

21 

21 

21 

21 

5 

Average no of buses of the road at any onetime 

0 

0 

0 

0 

0 

6 

Proporti on of the fl eet of the roa datanyonetime 

0% 

0% 

0% 

0% 

0% 

7 

No of bus journey scheduled 

59 088 

81593 

81841 

80 966 

82 319 

8 

No of bus Journeys cancelled 

551 

3101 

1480 

1675 

3 589 

9 

Proportion of journeys cancelled 

1% 

4% 

2% 

2% 

4% 


3.9 COASTAL, STORMWATER & CATCHMENT MANAGEMENT 
INTRODUCTION 


The primary aim of the department is the effective management of stormwater and coastal infrastructure. 

The Department is focussed on ensuring improvement of all stormwater systems to the same level of 
service for all citizens within the eThekwini borders, ensuring a coastline which is properly managed and 
maintained and ensuring that the flood risks to houses, industrial and commercial properties are managed. 

• CATCHMENT MANAGEMENT 

Flood lines have been developed for almost all of the rivers within the city. Residents whose properties 
were affected by these floodlines have been issued with letters indicating the extent of expected flooding 
on their properties. 



Figure 1 - GIS depiction of Flood Plain mapping in KwaMashu 

A large amount of erosion protection has been installed where properties and infrastructure were being 
threatened and this work has been done using local labour where feasible, 


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136 



Figure 2- 


Erosion protection for a house in Umlazi L section 



Figure 3- Erosion protection for house in Umlazi L section completed 

As part of the Council's Municipal Adaptation Plan we are in the process of recalculating the flood lines 
using the predicted impacts o-f climate change. We are also in the process of developing master drainage 
plans for the major catchment areas and these are to inform the process of identifying mitigation measures 
for new and existing developments within the catchment areas. The Catchment Management section is 
also involved with educating people on the role of wetlands and flood plains in maintaining water quality 
and flood levels. 


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137 



Figure 4 - Awareness raising at a school in Wyebank 



Figure 5 - Water quality monitoring with schools 



Figure 6 - School clean-up program for streams 


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Table 3.9.1. Stormwater Infrastructure Installed By Department (kilometers) 



Total stormwater measures 

Stormwater measures maintained 

2009/2010 

3394.764 

3394.764 

2010/2011 

4316.119 

4316.119 

2011/2012 

3738.078 

3738.078 

2012/2013 

3529.481 

3529.481 

2013/2014 

4003.000 

4003.000 


The above is the length extracted from our GIS database and reflects the known assets only. EThekwini 
Municipality is still in the process of finding and mapping all our stormwater systems as part of the asset 
management exercise. The above figures refer to the infrastructure that has been installed by the 
stormwater department only and do not include stormwater infrastructure that has been installed by roads 
or housing departments. The details of these installations are only made available in the ensuing years after 
construction. 


Number of properties below the eThekwini defined service level provided with STORM WATER solutions per annum. 

Outline Service Targets 

2010/2011 

2011/2012 

2012/2013 

2013/2014 


Target 

Actual 

Target 

Actual 

Target 

Actual 

Target 

Actual 

The number of properties below the 
eThekwini defined level of service 
provided with STORM WATER solutions 
per annum. 

218 

1048 

220 

999 

400 

606 

440 

475 


The asset management program which has been ongoing for the last seven years is beginning to provide 
the benefits in the form of identifying system deficiencies, providing accurate records which mean faster 
response times, a cleaner system which means fewer blockages and therefore less damage to property. 
The program also establishes the condition of the system and the expected remaining life which is crucial 
for planning budget requirements. 

The year was affected by a number of severe unexpected storms which resulted in a number of emergency 
projects requiring the upgrade of storm water systems. The integrated approach of the department and 
the use of computer modeling techniques have resulted in more holistic solutions being found and 
implemented. The additional work has resulted in the targets for the department being well exceeded 
because of the increase in budget provision for the emergency work. 

• COASTAL ENGINEERING 
Disaster Management 

The Department has, as part of its function and for assistance in the sphere of Disaster Management, 
looked at various methods to minimise the risk to Human life. Infrastructure and Special Services. 

Hence, the purchase of Flood Early Warning System software called FEWS. The systems aim to interpret 
atmospheric events and predict the impacts of such events. A primary example would be the prediction of 
flood events based on anticipated precipitation. Familiarisation of this program has started and will 
continue for the remainder of the year with a pilot project initialised in the following term. 


136 I P a g e 





Integrated Coastal Management Act 

In response to the Integrated Coastal Management Act, the Department has identified and collated on a 
Geographical Information System (GIS) database of approximately 600 beach accesses (including boat 
launching, vehicle accesses as well as informal and formal pedestrian accesses).The Department is now in 
the process of assessing and rationalizing these accesses. Also in response to the ICM Act, the Department 
has created a Coastal Structures GIS database, including Piers, Outfalls, Ablutions and changing facilities. 

Bay of Plenty Reconstruction 

The Bay of Plenty Pier, constructed in 1982, has exceeded its design life. Large storms that produced high 
wave energy in March 2007 and June 2011 significantly eroded the sea bed (Figure 1) and resulted in the 
pier moving. Many of the seaward piles have reached their ultimate limit state and have failed in 
compression. (Figure 2 & 3). It has become exceedingly probable that any further storm events will cause 
the old structure to fail further. 

In order to stabilise the structure the seaward 70m of the existing structure is to be removed and replaced 
with a new wider concrete deck. The design incorporates caisson piles to be used in the construction of 
the wider deck. The new piles will be found at a deeper depth than the original piles to ensure that the 
structure remains stable when scour periodically occurs. 

This project will include maintenance of the pier, rock levels, using environmentally friendly geotextile 
bags to re-instate the low level semi-permeable groyneunction of the pier. It is anticipated that the rip 
currents will improve the surfing. 

This project will include maintenance of the pier, rock levels, using environmentally friendly geotextile 
bags to re-instate the low level semi-permeable groyneunction of the pier. It is anticipated that the rip 
currents will improve the surfing. 

Figure 1: Scour on the south seaward end of Bay of Plenty Pier due to large swell events and high energy 
winter waves. 



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Figure 2: Failure of piles in compression due to raking as a result of scour. 



Figure 3: Severely deteriorated pile in failure 


Sea Attack 

Coastal flooding at the Winkelspruit lifesavers club caused the dune embankment and slipway to wash 
away. (Figure 4). Repair work was required to reinstate the slipway and other infrastructure to ensure 
that the lifeguards can effectively perform their duty of saving lives. Figure 4 below shows the extent of 
damage to the slipway. 


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Figure 4: Collapsed Slipway, Winkelspruit, Lifesavers Building 


The slipway, pedestrian access staircases and dune embankment have been reinstated. The slipway will 
be protected via the use of Geotextile Sand Containers (GSC) (Figure 5). GSC's will also be used to stabilise 
the dunes at the front of the building. The dunes will be reinstated and rehabilitated with dune vegetation 
as a part of this remedial work. 



Figure 5: Remedial Work at Winkelspruit, Lifesavers Building 


Umhianga Pier Award 

The Umhianga Pier was voted among the top 10 Most Beautiful piers in the World by CNN. Quote: This pier 
isn't just a place to grab a great photo -- it's an extension of an underground culvert that helps disperse 
excess storm water from the land into the ocean. The distinctive whale bone structure won the South 
African Institute of Civil Engineering (Durban) award as well as the Institute of Municipal Engineering 
National Award for Outstanding Civil Engineering Structure. 


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Figure 6: Umhianga Pier: Voted among the 10 most beautiful piers in the world by CNN. 
• STORMWATER ENGINEERING: 

Bellair Road Stream Rehabilitation 


The area in question was the road embankment to Bellair Road, Cato Manor, which is adjacent to the 
BellairStream which forms part of the Major Umbilo River Catchment. 

The failure of the stream embankment due to scour at the toe of the embankment had caused the wash 
away of the road infrastructure, sewer, stormwater, water mains and electricity cables. 

The continued rains had highlighted the potential further loss of the road network as well as further damage 
to major electricity supply due to electricity outages and cable theft. There was a loss of one lane (south 
bound) at a major road intersection causing traffic congestion and danger to road users and pedestrians. 

The wash-away and road 'cavity' was approximately 50m wide by 7m deep along the stream / road 
embankment. The wash-away also extended down to the existing stream where the risk of further erosion 
was apparent. 

A gabion mass gravity retaining wall was designed and constructed and the slipped embankment reinstated 
andre-vegetated. Also included was the rehabilitation of the adjoining road, sidewalk and specially 
designed fencing. 

The gabion structure is up to 7m in high places and the total volume of stone placed was approximately 
2500 m^ Works started in June 2013 and practical completion was reached in October 2013. 



Fig 1 -Bellair Stream: Erosion of Road Embankment 


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143 



Fig 2 -Bellair Road Gabion Embankment 



Fig 3 - Local Labor Constructing Gabion Retaining Wall 

Chipstead Avenue - Emergency Stormwater Pipeline and Embankment Rehabilitation 

Chipstead Avenue is in Fynniands, Bluff. 

The failure of the roadway and embankment was due to the bursting of the Asbestos cement, water main 
that is located on Chipstead Avenue. A section of the existing Chipstead Avenue had to be closed off to 
traffic due to the roadway being washed away down the bluff slopes. The wash away was aproximatelylSm 
wide and approximately 25m deep. The burst scoured a pathway down the unstable bluff slopes and 
washed the dune sand onto the Transnet Railway lines at the toe of the slopes. This resulted in the closure 
of theTransnet rail lines. Buses had to be brought in to ferry the commuters to the next appropriate station 
until the railway lines had been cleared of the silt deposits. 


141 I P a g e 


Due to the extensive scour and the highly erodillf ^oils, there was a requirement to commence emergency 
work to minimize further damages. A rigid retaining wall structure was not viable because of potential dune 
movement. A flexible structure known as Green Terramesh coupled with reinforced earth was decided 
upon. The front face of the Green Terramesh was filled with topsoil and compost to encourage vegetation 
growth. While the roadway was being attended to the damaged storm water pipeline and a section of the 
water main was replaced. The challenge was that the access was dangerous due to the steep slopes, and 
working with heavy plant was extremely difficult. Special accesses had to be cut and sheet piled in order to 
have access to the lower section of the steep slope to create a safe working platform. The embankment 
was rehabilitated with indigenous vegetation and guard rails and fencing was installed for safety and to 
prevent illegal dumping of rubble down the slope. 

This project commenced in May 2014and was completed in July 2014. 



Fig 1 -Chipstead Avanue - Locality Skech 



Fig 2 -Chipstead Road - Prior to Reinstatement 


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Figure 3 - Chipstead Road - Post Construction 

CONSTRUCTION OF A CULVERT MPANGELE ROAD PHASE 2 

This project is situated in Kwa-Mashu Township North of Durban. The project entails the upgrading of the 
existing Culvert under Malandela Road. This Culvert will alleviate any further flooding and give much 
needed relief to the community of Kwa-Mashu as well as being lengthened relative to the old culvert in 
order to accommodate the widening of the road to meet the requirements of the IRPTN. See locality plan 
below. The project consists of a new reinforced concrete cast in-situ double box culvert 22 m in length with 
each cell measuring 2.5m in height and 4.5m wide. This replaces the old culvert which was a four cell brick 
walled culvert with concrete base and deck which was in a very poor structural state as well as being prone 
to blockages. The project began in February this year and completion date is expected to be December 
2014.This project created many employment opportunities for the immediate community. 



Figure 1: Locality plan^ 


3 www.google.com 


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Figure 2: Old Culvert 



Figure 3: New Culvert under Construction 

In addition to the above high profile projects more than 600 contracts each valued under R30 000 to 
address minor repairs and improvements were awarded, as well as a total of 113 contracts (24 major and 
89 minor contracts) for more substantial works. 


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147 


3.10 LOCAL ECONOMIC DEVELOPMENT (INCLUDING TOURISM AND MARKET PLACES) 

Preamble 

The 2013/14 financial year was challenging for the eThekwini Municipality on levels: the lag effects from 
the recent global financial crisis five years ago is still being felt as the Eurozone is our major trading partner 
as well as our main tourism market; the protracted strikes in the mining and metal industries impacted 
significantly on the manufacturing sector - the second largest in the country; unspectacular GDP and 
employment growth and delays by national government on major catalytic projects in the greater Durban 
area, the completion of which are key to achieving the socio-economic objectives of the Economic 
Development Plan for the city. 

However, despite the introduction of severe fiscal austerity measures, the City has been able to resiliently 
withstand these impacts and remains the best-run and financially strongest local government in Africa! The 
city was given a credit rating of AA+ by international credit agencies. Of the five main economies, only 
Johannesburg (2.75%) had a higher GDP growth rate than eThekwini (2.6%) and was much higher than the 
national rate of 1.89% during 2013. 

The city is still the largest domestic tourism destination in the country due largely to its event-led tourism 
to attract both business and pleasure tourists. The successful hosting of the 3'''^ Top Gear has prompted the 
city to bid for the event for a further 3 years. The South Africa Sports Minister recently pledged his support 
to Durban's bid for the 2022 Commonwealth Games. The city was identified as best suited to host a multi- 
sport event without excessive expense, with much of the required infrastructure already in place. 



The prospects for the domestic economy will still depend on growth in the rest of the world, which could 
boost demand for South African exports. The recent increase in national unemployment in the first and 

second quarters of 2013 places a greater burden on the demand for jobs. With Durban being the second 
most significant manufacturing region in the country, the uncertainty over the mining policies is affecting 
the growth potential of this sector. While manufacturing benefited from a quickening in global growth in 
the second half of 2013 and coupled with the weaker rand, the competitive edge provided by the weak 
rand is likely to be short-lived because of rising input costs. 


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148 



Introduction 

The broader economic development function falls under the auspices of the Economic Development and 
Planning Committee (ECOD) in the eThekwini Municipality and is chaired by Councillor Nomvuzo Shabalala. 
The activities are guided by Plan 2 ('Developing a prosperous, diverse economy and employment creation') 
of the municipality's Integrated Development Plan (IDP) with the goal 'To develop the economic wealth of 
the eThekwini region for the material well-being of all Its citizens' and the outcome being 'Strong economic 
growth, sustainable job creation and poverty alleviation'. 

Policies affecting economic development are guided by those emanating from the three spheres of 
government and are encapsulated in the IDP and the Economic Development and Job-Creation Strategy 
2013-2018 from which significant local economic activities are conceived and realised. Economic 
development thinking is also influenced by global initiatives such as the Millennium Development Goals, 
and others that are relevant to the goals of Plan 2. 

The Economic Development and Investment Promotion Unit, the Strategic Project's Unit, the Business 
Support, Markets and Tourism Unit, as well as the other appropriate entities are all mandated to execute 
plan 2 of the IDP. The specific focus areas strive to address the economic injustices of the past, enhance 
the existing significant competitive assets in the City and ensure the region is resilient in its attempts to 
constantly absorb the shocks and stresses to social, economic, technical systems and infrastructure arising 
out of climate changes, energy scarcity and population changes. 


Globally, the past four years has been dominated by issues relating to high unemployment, the euro zone 
sovereign debt crisis and fiscal austerity measures, all of which have had negative impacts on South Africa's 
job targets as set out in the National Development Plan (NDP) 2011. The New Growth Path (2010) intends 
to reduce unemployment from 25% to 15% through the creation of 5 million jobs by 2020 while the National 
Development Plan 2011, is aiming to do the same from 2021 to 2030, by providing an additional 6 million 
jobs. 

In the 2013 State of the Nation Address it was reaffirmed that the NDP would be the government's driving 
strategy by reinforcing infrastructure as a key intervention in addition to the five priorities of education, 
health, combating crime, creating decent employment opportunities and rural development and land 
reform. 


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149 


STATE OF THE ECONOMY 2013 2014 


Locally, the eThekwini economy grew by 2.6% between 2012 and 2013 (GDP was recorded at R217, 7 billion 
in 2013, in constant, 2005 prices). The main sectors contributing to this growth were manufacturing, 
finance, trade and transport and community services as is reflected in the pie chart below. 



The local economy grew over the period 1996-2013 at an average annual rate of 3.8% and total employment 
for 2013 was approximately 1,2 million (including informal employment), with a growth rate of 1.1% over 
the previous year. 

The tourism sector is hailed as the platinum sector in Durban and during the period under review, there 
were many events that helped support this claim. In addition, the National Geographic partnership which 
was implemented during 2012/13 commenced the first phase with the launch of the Historical Durban 
Documentary on 1^* May 2013. This, together with the 60-second vignette which features an advertorial 
on Durban and the digital website was viewed by over 360 million people across 260 countries for the next 
few months. 

Durban was the proud host of Tourism Indaba 2013 - for two years in a row. Tourism Indaba has also won 
the award for Africa's best travel and tourism show from the Association of World T ravel Awards. Last year 
the event attracted 10,793 delegates and about 13,000 visitors are expected for 2013. 

In September 2013, the Durban ICC also hosted the International Association of Women Police Training 
Conference, and a number of major medical events before the end of the year. The medical events in the 
2013 calendar included the 11'*^ Congress of The World Federation of Societies of Intensive and Critical Care 
Medicine, the 6**^ Multilateral Initiative on Malaria Pan African Conference and the African Organisation for 
Research and Training in Cancer Conference. These high-profile medical conferences benefit the city not 
only by their economic impact but also through the knowledge transfer, which takes place at these events 
and the legacy which they leave behind. The 2013 Business Fair and International Conference on SMMEs 
also took place during the last week of September 2013 at the Durban Exhibition Centre. 

In addition to these events, the Centre has also secured a number of impressive international events for 
Durban in the coming years. These events include the Congress of the International Union of Architects in 


147 I P a g e 


August 2014 which has brought 5,000 delegatJs^d the 14'*^ World Forestry Congress in 2015 which will 
attract a further 8,000 delegates. Also scheduled for 2015 is the world's largest aviation exhibition, the 
World Routes Development Forum that will bring in 3,000 delegates and 350 Airlines. The 21^* Baptist World 
Congress will also take place in 2015 and is expected to attract 10,000 visitors to the City. The Durban ICC 
was chosen to host the International Aids Congress in 2016 which is expected to bring 20,000 delegates to 
the City. 

Major investment activity in eThekwini includes the Afrox location to Cornubia where they will be investing 
R500m to relocate its Durban operations to a centralized site at the new Cornubia Industrial and Business 
Estate. A major factor that influenced this investment is the planned redevelopment of the Port of Durban's 
infrastructure, especially at Maydon Wharf where Afrox has been conducting its industrial and medical gas 
filling activities for many years. Other successfully concluded foreign direct investment manufacturing 
projects secured and now operational include, SRF Flexipak& MSSL Global (two separate Indian-based 
multinationals investing in excess of R600m each). There is a definite increase in foreign investor activity 
in Durban, and this has also been confirmed by the UN World Investment Report, 2013. 

On the local economy, the City has placed several significant strategies and initiatives that will leverage 
maximum local benefit for the eThekwini region, following the President's State of the Nation Address and 
National Budget speech. The City's Economic Growth andJob-Creation Strategy 2013-2018 reflects some of 
the major infrastructural developments planned for Durban, such as the Port expansion, Dig-Out Port, the 
proposed Special Economic Zone at Dube Trade Port, Cornubia and the SIP 2 Durban-Free-State-Gauteng 
Corridor. The EThekwini Industrial Strategy is presently being crafted and is expected to exploit optimal 
benefits for the local region, arising out of the national infrastructure budget. The graph below confirms 
eThekwini as the second most significant manufacturing region in the country. 


Share of Primary, Secondary and Tertiary contribution 2013 
(RIOOO, Constant 2005 Prices) 


250.000. 000 

200.000. 000 

150.000. 000 

100.000. 000 
50,000,000 

0 

_ 




^ ^ ^ ^ 

Cape Town 

Ethekwini 

Johannesbur 

g 

Nelson 
Mandela Bay 

Tshwane 

■ Primary sector 

1,586,396 

2,526,130 

4,638,321 

206,591 

1,879,628 

■ Secondary sector 

42,931,635 

53,100,928 

67,728,193 

16,256,930 

36,664,302 

■ Tertiary sector 

158,944,537 

139,714,932 

230,146,098 

41,219,463 

140,716,397 



148 I P a g e 



151 

Dube Trade Port is planning to develop an aerotropolis or airport city which is based upon the notion of 
airports being drivers of growth. The initiative is being developed to cater for various land uses that 
internationally have been shown to be in high demand in proximity to an international airport. The aim of 
this is to attract foreign direct investment in manufacturing, logistics, commercial, industrial, transport and 
tourist sectors. 

PROGRAMMES AND PROJECTS FOR PLAN 2 

The programmes and projects affecting economic development and job creation for Plan 2 of the City's 
Integrated Development Plan (I DP) are outlined in further detail: 

STRATEGIC FOCUS AREA (SFA): SUPPORT AND GROW THE ECONOMY 


The Plan 2 vision is underpinned by this significant focus area and is also endorsed by the National Growth 
Path (2010) that calls for local governments to play an active role in responding to job drivers such as 
investment into the development of energy, transport, water, communications infrastructure and housing. 
This SFA aims to gear up resources of local government and strategic partners to deliver on the NGP 2010 
drivers. A key feature of this SFA is to package policy and specific project engagement strategies with key 
partners to unlock development. In order to achieve this, the municipality is required to undertake 
economic research and provide the necessary intelligence to these discussions. 



The key actions in this SFA include unblocking developments; support for strategic projects; approvals for 
catalytic investments; funding for projects and more importantly, progress on initiatives highlighted by key 
partners as strategic interventions in the local economy. Another key responsibility of the municipality will 
be to actively and transparently promote investment that is packaged or positioned for implementation. As 
part of this role, the eThekwini Municipality has actively marketed the region and its investments in order 
to secure partnerships for delivery and funding of projects. The critical success factor, however, is that of 
open and transparent decision-making, as well as common project planning for catalytic infrastructure 
projects. The City Investment Marketing and Promotion programme will be driven by the municipal 
entities. Urban Renewal Unit, Durban Tourism, the Durban Investment Promotion Agency and key partners 
such as the Durban Chamber of Commerce and Industry, Trade and Investment KwaZulu-Natal, as well as 
various sector development entities established through partnerships with the three spheres of 
government. 


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PROGRAMME 2.1: LOBBYING AND PROVIDINC^^^ATEGIC SUPPORT 


In order to move from a situation of stagnating slow growth to one with a marked change in the way that 
the city conducts its business, requires effort from strong economic leadership. In essence, the city requires 
a set of influential teams of professionals whose power is derived from a variety of sources. Leadership 
coalitions should include senior officials, politicians, professionals and people with specific expertise. 
Leadership coalitions also provide greater accountability within the political caucuses to assist in unlocking 
these strategic executive decisions on key flagship projects such as port development; strategic land parcels 
that are positioned for development, sector specific projects, new economic sectors and key infrastructure 
platforms. It is further proposed that leadership coalitions be extended to business sector and business 
coalitions. 

This programme is focused on a set of key project actions and decision-making support mechanisms to take 
the municipality from a situation of uncertainty to one where resource allocation can be confirmed and 
directed towards flagship investments that are able to provide a step-change in economic growth. In the 
last five years, several projects have reached a political and implementation impasse where there exist 
project limitations in moving into implementation phases. Additional projects include: Investigating the 
establishment of an Economic Advisory Council with key role-players to actively monitor progress on 
projects and to unlock decisions; investigating and providing the appropriate systems and structures 
needed for better project management and facilitation of opportunities; and facilitating decisions on 
catalytic projects. 

These decisions include: the initiation of the Environmental Impact Assessment for the Port Expansion; Sale 
and Use of the Durban International Airport site owned by ACSA; the redevelopment of Clairwood and the 
Back of Port area; an Intermodal Park to support Port Expansion; investigating the establishment of a 
Special Economic Zone; future of strategic land parcels such as Block AK, the Centrum Site, Natal Command; 
lobbying for a National Broadcasting Centre; the location and establishment of an Automotive Supplier 
Park. Some of these strategic economic interventions are indicated in the map below. 

Key features of this programme include alignment with institutional drivers outlined by the NGP (2010) 
such as more constructive and collaborative relations amongst state, business, and labour. In terms of 
specific initiatives by the eThekwini Municipality, this programme sets out specific attention required on 
key partnership projects with Transnet; PRASA; Public Works; the DTI; and ensuring on-going dialogue with 
Cabinet. 

The 2013/14 financial year was significant for the City from the perspective of economic development. In 
November 2013 the City launched the Economic Development and Job Creation Strategy, which is aimed 
at providing overall direction in addressing the persistent challenges of poverty, unemployment and 
inequality. The main thrust of the strategy deals with building stronger economic leadership; directing city 
infrastructure towards economic development and gearing private sector investment. This is supported by 
a number of other strategies that seek to increase the pace of transformation; tackle urban renewal and 
strengthen key economic sectors. The strategy calls for a 'step change' in the approach to economic 
development and a key part of this is making the city more investor friendly. 

As part of this strategy the PSIR department developed the Investment Dashboard, which seeks to 
document all major investment projects planned and identify challenges for the realization of those that 
meet the City's objectives. There has been some success in securing key investments, particularly around 
the Dube Trade Port. However, in general while significant gains for economic development have been 
made within City planning processes from an advocacy perspective, very little tangible developments have 
been realized. This is largely due to infrastructure constraints and regulatory challenges. Developers 
continue to identify the high cost of development within the city as a challenge as well as the lengthy lead 
times required before development is realized. The Strategic Infrastructure Programme 2 (SIP2), which 
includes the development of the Dig out Port, has made some headway in co-ordinating the planning largely 
around logistics infrastructure in the Durban to Gauteng corridor. However, this too remains largely in the 
planning stage. In general, infrastructure constraints as well as regulatory matters and misalignment 


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between government departments remain al-<rallenge. The key objective for 2014-15 will be the 
implementation of strategies identified in the Economic Development and Job creation Strategy. 



Dube Tradeport 


Umhianga New Town 

Cornubia 

INK ABM 

Strategic Projects 

for 20 1 1 & beyond 

Creative Industries Precinct 

Beachfront Upgrade 

ICC Expansion 

Point Redevelopment 

Port Expansion 

Dig-Out Port 

South Durban Basin ABM 

Durban • Gauteng Corridor 

Cato Manor ABM 

Umlazi Township Regeneration 

Revitalize Hammarsdale/Cato Ridge 




Strategic Economic 
Interventions 


Figure 31: Strategic Economic Interventions 
POLICY, STRATEGY, INFORMATION AND RESEARCH (PSIRl 

The Policy Strategy Research and Information (PSIR) arm of the Economic Development and Investment 
Promotion Unit is tasked with providing economic intelligence to the city and to conduct research, policy 
and strategy that advances the economic agenda. The department has developed an Economic 
Development and Job-Creation Strategy 2013-2018 and was approved by the Council during November 
2013. Presently the PSIR Dept, is compiling a comprehensive Economic Plan to implement the various 
actions recommended from the Strategy. 

The Key initiatives during 2013/14 inciuded: 

PROGRAMME 2.2: PROVIDING ECONOMIC INTELLIGENCE 

Economic Development and Growth in EThekwini (EDGE) - this entails the compilation of a set of 
publications to provide quarterly updates on a range of global; national; provincial and local economic 
issues. The 4 publications produced during 2013/14 consisted of quarterly economic information as well 
as research papers on key issues such as the Port Expansion; manufacturing; youth unemployment; skills 
shortages; BRICS and its implications for Durban; Investment in Africa and implications for Durban. In 


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addition, it also included seminars on key topift^hat included a feature on 20 years of democracy in 
eThekwini, the SMME and manufacturing sectors. 



Sector Research and Strategy initiatives included the Innovation Strategy; Green Industries Implementation 
Plan and the Tourism Sector Strategy. A study was also undertaken focusing on the role of sport at a grass- 
roots level, in promoting economic development. 

The City has a Memorandum of Agreement with the University of KwaZulu-Natal, Durban and has through 
the Economic Development Unit, to undertake a manufacturing survey in the region. The pilot survey was 
recently completed in July 2013. The main survey commenced during August 2013 and will be completed 
in 2015. This is a repeat of the survey done during 2001/02 that examined constraints to manufacturing 
growth in the micro-economy. 

The department completed the State of the Economy presentation 2012/13 based on the indicators 
provided by Global Insight. There is a six-month lag for the new data each year and the department is soon 
to compile a review for the period 2013-2014. The review will again highlight key indicators, trends and 
challenges impacting on the local economy. 



The Unit also undertakes impact studies of key catalytic developments in the region. A cost benefit analysis 
and macro-economic impact study is one such exercise and has been commissioned for the Cornubia 
development, the results of which will be available during September 2014. 


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Job Monitoring: the department developed a s-ystern of monitoring jobs in the eThekwini economy as well 
as jobs created through the Municipality. This system was structured in a way that makes it possible to 
enable better reporting of job trends in the local economy. 

Investment Risk: when a lack of private sector investment was identified as a priority one risk in the 
Municipality's risk register, the department developed an action plan to address this and currently co- 
ordinates the actions related to this. The department, through the draft Economic Development Strategy 
and later, the work on the risk register introduced the concept of a review of the Best Practice City 
Commission which was initially undertaken in 1999. 



The department is also responsible for economic aspects of the IDP; SDBIP; Scorecard; Risk Register; 
Economic Annual and Monthly Reports; etc. 

Numerous requests for information are also received from other departments; investors; business; etc. 
which the department provides. In addition, the department participated and made input on city planning 
processes; key projects; provincial and national forums. 

Investment Dashboard: the concept of an investment dashboard was introduced in 2012. The project 
attempts to identify key investment projects and track their progress with the aim of alerting the Deputy 
City Managers' (DCMs') Forum and Council on a quarterly basis of any delays hampering specific projects. 
The work thus far was presented during August to the City Manager and other members comprising the 
city leadership and was well received. 


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156 


Investment Dashboard 



Investment Dashboard 



Special Economic Zones (SEZs): Following the successful seminar and workshop on SEZs during 2012 and 
the KwaZulu-Natal Province's plans to include 2 SEZs for the eThekwini region, further work will be done in 
2014/15 in this key area. 



Industrial Land Study - this initiative was conceptualized and aims to address and bring an informed 
response to the challenges related to the shortage of industrial land. A draft Industrial Development 
Strategy was also developed, in order to specifically identify industrial sectors requiring support and the 
nature of support to be provided. However, this will only be taken forward once the economic strategy has 
been adopted by Council. 


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157 

Investment Promotion Policy: This Policy is now finalized and awaiting approval by the Economic 
Development and Planning Cluster Deputy City Manager. 


PROGRAMME 2.3: STIMULATE KEY SECTORS THAT PROMOTE ECONOMIC GROWTH AND CREATE JOBS 
THROUGH PROVIDING SUPPORT FOR PRIORITISED SECTORS 


TABLE 3.2 FINAL 2013/14 ACCUMULATIVE INDICATIVE FTE JOBS 

Quarter 

No. of Projects 

Expenditure (Rmil) 

Direct FTE Jobs 

Q1 

827 

812.13 

4639 

Q2 

883 

2105.96 

8970 

Q3 

1750 

3189.20 

12906 

Q4 

1830 

5,318.340 

17270 


This programme leverages off the local manufacturing base comprising clothing, textiles, furniture, 
automotive, chemicals and maritime and logistics industries. The approach followed is to support co- 
funding initiatives by private and public sectors such as industry clusters, joint action groups and export 
councils recognized by all spheres of government and contained within the National Industrial Policy 
framework. 

The programme is also aimed at protecting threatened sectors; harness opportunities from labour intensive 
growth sectors and upgrade capital intensive sectors in line with national industrial policy framework and 
incentives programmes. It is also aligned to Customised Sector Programmes adopted by the DTI; the KZN 
Industrial Strategy and Spatial Economic Development Strategy; and local sector strategies in order to 
derive maximum support for local sectors. 

The programme has funded and provided other support to the foliowing dusters and other initiatives: 

Clothing and Textiles 

The KwaZulu-Natal Clothing and Textiles Cluster assisted a number of member firms to access funding 
through the Competitiveness Improvement Programme of the DTI which has resulted in significant 
efficiency impacts through skills and technology upgrades. 

Furniture 

One programme focused on Furniture Business Skills for emerging entrepreneurs and another on training 
established manufacturers in the principles of world class manufacturing methods. 

Durban Chemicals 

The Africa Series workshops focused on specific African countries to explore opportunities for firms to 
establish themselves. The cluster has successfully hosted workshops in Nigeria and Kenya, providing 
member firms an overview of the economic, political and risk profile of these countries, together with 
challenges and opportunities. The Manufacturing Competitiveness Enhancement Programme Cluster 
Application assists memberfirms with the application process and have successfully leveraged funding from 
the DTI Incentives Programme and in so doing promoted competiveness and job retention in the industry. 
Firm level benchmarking has been successfully completed at member firms which resulted in 
manufacturing intervention support, electricity efficiency, waste management and inventory control. 


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158 


Durban Automotive 

The National Localisation Indaba was held in June 2014 together with the Cluster Annual General Meeting 
(AGM). The core focus of the indaba was to drive localisation across the value chain, providing improved 
access to sector and firm-level growth opportunities, growing employment, global technology affiliations 
and local innovation. 

Fashion Hub 

The aim of the Fashion Hub is to contribute to the inner city revitalisation in partnership with the DTI, DAC, 
KZNDEDT and TIKZN. It provides incubator units, access to work space, machinery, expertise and 
technology at nominal to young and emerging designers. 


PINK Furniture Incubator 

This incubator is aimed at providing manufacturing support in the Phoenix, Inanda, Ntuzuma and Kwa- 
Mashu areas. It focuses on furniture manufacturers and provides access to machinery and technology. 
Training and market access are key aspects of the in-house programmes. The project has been through the 
design, planning and approval phase and the incubator will be completed by 2015. 

Lamontville Multi-Media Centre 

Career box training was conducted for 9 learners free of charge due to the community development aspect 
of the programme. There were 19 students who graduated from an ICT phase 1 course during March 2014 
and 14 were short-listed for phase 2. The Centre hosted a Youth Day celebration on 14*^ June 2014. 

KZN Fashion Council 

The Fashion council has increased its database to now service 700 designers and value-chain members 
across KZN. The Cluster has successfully implemented a capacity building programme for designers. These 
designers have been showcased at South Africa's premier Fashion Week and are making a big impact. One 
designer won the Lufthansa Young Designers competition, while 3 young designers are supplying Edgars 
and another has become a successful exporter - all in the space of one year. The Fashion Council has key 
relationships with the DTI, National Fashion Council, TIKZN, KZNDEDT as well as significant industry players 
in order to optimise and leverage benefits for the local fashion industry. 

EThekwini Maritime Cluster 

The Cluster held its AGM on 18**^ June 2014. Partnerships with the DCCI, Transnet and the DTI have created 
a major breakthrough initiative relating to the Maritime Supplier Incubator Programme, which was 
completed in June 2014 and will enrol about 12 suppliers in its first year. The Cluster was also responsible 
for hosting the BBBEE Compliance Support via workshops which has led to the Enhancement of the 
Maritime Sector Knowledge and Awareness initiative. 

The International Labour Organisation (ILO) has shown keen interest in partnering with the Cluster for 
training and other support services in the fisheries sector, for the development of social entrepreneurs and 
a wider group of women entrepreneurs. Within this Cluster 4 maritime economists have also been placed 
under the Graduate Placement Programme. 

EThekwini Waste Materials Recovery Industry Development Cluster 

The Cluster has successfully secured a contribution from the Green Fund for the development of the 
Hammarsdale Waste Beneficiation Centre and the services of a professional team. The CEB project has 
built 10 demo structures and trained 132 people to date. The Cluster also facilitated the establishment of 
Ukewanje in the E-Waste businesses. 

The Cluster established partnerships with Siyanda Recycling and Rainbow Chickens. The Use-lt website has 
been upgraded and a new service provider has been appointed. 

Durban Green Corridor 


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The Durban Green Corridor in involved with the+erabilitation of rivers and other associated green corridors 
and promotes leisure and eco-tourism all of which helps to drive local economic development. To date the 
Corridor has created 171 full time equivalent jobs and is at present busy building infrastructure and capacity 
at 7 UMngeni Valley and at 6 INK ABM sites. 

Waste Value Chain Analysis of the Recycling Streams in EThekwini 

This initiative examines the status quo of cardboard, paper, glass, building waste, e-waste, tyres, cans and 
plastic recycling in eThekwini across their respective value chains to determine practical and relevant 
interventions that will enhance the management and recycling of waste as well as support the formal and 
informal waste/recycling sector. The supply chain processes have been completed during 2014 and a 
service provider has been appointed for this task. A Steering Committee with relevant stakeholders has 
been formalised. 

Edamame Development Programme 

The work set at the Edamane research farm has, to date created 149 temporary jobs. A total of 34 emerging 
farmers were trained on institutional capacity building, farm planning, basic financial literacy and the 
establishment of cooperatives. Four large cooperatives were engaged resulting in the harvesting of 6 tons 
of produce. 

AIVP Ports and Cities Conference 2014 

The Municipality secured the bid to host the AIVP Ports and Cities Conference 2014 in Durban. This 
Conference will give international recognition to the Port of Durban. 

It is clear that the nine Clusters are targeting industries that employ a significant proportion of total 
provincial employment. There are approximately 300,000 people formally employed, or about 25% of the 
KZN Provincial total of 1.14 million formal jobs overall, in industries directly relevant to the Clusters 
described. There's also an indication that the performance of many firms has improved as a direct result 
of participation in the Clusters and many additional firms have benefitted indirectly through the backward 
and forward linkages with Cluster member firms. 

Over and above the Cluster approach, there are at least 3 other complementary ones which can 
meaningfully impact on job creation and where KZN Provincial Government and eThekwini Metro need to 
prioritise, with support from the Clusters, in order to accelerate job creation: 

a) The provision of dedicated infrastructure facilities which meet the needs of the priority clusters is another 
complementary approach which can accelerate cluster competitiveness and economic growth. 

b) Improvements to the overall business environment in terms of service delivery cost effectiveness, 
reliability and quality esp. as it impacts on input costs (water, energy, waste, transport logistics). 

c) Red tape reduction in terms of decision-making processes and time-frames as well as improvements to 
regulations which are negatively impacting on cluster competitiveness. 

PROGRAME 2.4: SPECIAL-PURPOSE VEHICLE TO SUPPORT TO SUPPORT, MARKET AND PROMOTE THE 
LOCAL FILM- AND DIGITAL MEDIA INDUSTRY 

The Durban Film Office (DFO) is a Special Purpose Vehicle of the eThekwini Municipality, launched in 2003 
and is mandated to position Durban as a globally competitive film city with a view to boosting tourism, job 
creation and the development of core skills and SMME's. Various initiatives relating to marketing and 
communication, outreach programmes and collaborative projects have been planned by the office. 

The DFO's 2013/2014 activities focused on development initiatives that aim to promote the establishment 
of a motion picture and media hub in Durban that will expedite the development of local producers, the 
attraction of national and international funding bodies for critical skills training, and the creation of 
products for local and international consumption. 

The key outputs of these projects will ensure capacity building and skills development of local producers, 
directors and screenwriters, increased export quality products from the continent and ultimately position 


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the city of Durban as a centre of excellence fo^fPiy financing, sales, distribution and marketing of motion 
picture and new media products. As part of this vision, one of the key focus's over the next three years is 
to identify opportunities to increase the City's market share in terms of the rapidly growing digital 
innovations in the motion picture sector. 

Programme implementation includes: 


Durban FilmMart Programme 

Established in 2009, the Durban FilmMart aims to create partnerships and further the development and 
production of African film content. This initiative is a joint venture between the Durban Film Office and the 
Durban International Film Festival, South Africa's largest and longest-running film festival and a flagship 
project of the Centre for Creative Arts, University of KwaZulu-Natal. 

This collaboration brings to Africa growth, recognition and the opportunity to develop strategic 
relationships between film financiers and African filmmakers. In its 5*^ year, the Durban FilmMart continues 
to raise the visibility of African cinema, stimulate production, and facilitate project collaboration between 
African film-makers. Over the past five years, the Durban FilmMart has worked with a total of 74 projects 
in development from all over Africa, and together with partner markets, festivals and funding organizations, 
has provided many of these projects assistance in accessing the global markets through developing industry 
networks and enabling projects to experience opportunities at partner markets and festivals. Many of these 
projects have gone to screen at various international film festivals around the globe, including the Durban 
International Film Festival. 



The annual four day programme consists of a number of strands including; 

The Finance Forum: Provides filmmakers the opportunity to meet with international film financiers, sales 
agents and distributors on a one-to-one basis over a two day period. 

The African Pitch: A full day of pitching to a panel of funders, co-producers and broadcasters. 

Master classes: Presented by leading experts in the film industry, the aim of the master classes is to 

develop African producers' industry knowledge and professional skills so that they 
can compete more effectively locally and internationally, and to provide a greater 
understanding of what is expected in packaging and pitching projects for the global 
marketplace. 

Transmedia Lab: Focuses on working across traditional media boundaries by using a combined 

implementation of media platforms. 


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Africa in Focus: 


A range of seminars aIrfa-’-panel discussions featuring local and international 
filmmakers and industry experts with a special focus on African issues and initiatives. 


Durban FilmMart 2014: Fast Facts and Key Statistics 

• Durban International Film Festival, managed by the Centre for Creative Arts, University of KwaZulu- 
Natal, is the longest running and largest film festival in Africa, presenting over 250 film screenings over 
10 days annually, across 9 Screening Venues and hosts over 700 Industry Guests and 5000 Film Lovers 
with an estimated 30000 cinema tickets sold. In 2014 the festival also presented a programme of youth- 
orientated films for more than 4000 students from schools in the region, who were provided with 
transportation to Suncoast Cincentre's Supernova Theatre. 

• The Durban FilmMart established in 2009 celebrated its 5*^ edition in 2014, has become the most widely 
recognised African Film Co-production Market on the continent, hosting over 450 industry professionals, 
35 Industry Seminars, and facilitating over 900 official business meetings between local filmmakers and 
producers, financiers and distributors from around the world annually. 

Durban FilmMart Marketing and Media 

The Festival and Market employ robust media campaigns annually. Media rollout includes print, broadcast, 

online, social media and outdoor advertising: 

• Monthly newsletter to over 3000 industry professionals. 

• Weekly countdown mail shot leading up to the commencement of DFM. 

• Electronic Dailies produced by international print media partner Variety and distributed to Variety's 
International data base. 

• Daily Electronic Dailies produced by local print media partner. The Callsheet, and distributed to 
local and African data base. 

• Daily live broadcast of programme activities, interviews etc. from the Elangeni Flotel, on DSTV. 


Durban FilmMart 

Estimate A.V.E Rand value 

Estimate PR Rand value 

Print coverage 

661377.8 

1984133.4 

Online coverage 

3988182.18 

11964546.54 

Broadcast coverage 

181641.66 

544924.98 

Total media coverage 

4,831,201.64 

14,493,604.92 


Micro Film and Development Programme 

The first phase of this support programme was implemented during 2012/13, in the form of monthly 
market workshops for emerging filmmakers. The second phase is currently underway, and will see the 
development and production of 9 local emerging made for TV Films in 2014/15. 

The programme aims to support the production of local content in order to stimulate the economic and 
commercial capacity of the local film industry, and has been designed to recognize the different stages of 
professional development of local film-makers and provide support for emerging talent to gain production 
experience in order to access national and international support and funding. The programme will be 
combined with a professional support and mentoring process to minimize risk, facilitate knowledge, skills 
transfer; and maximize success rates. The micro film programme offers a programme to develop local 
content that is cost-effective, practical, realistic and commercially viable. 


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Producers Lab SMME Incubator in Partnership^^ SmartXchange 

The Producers Lab aims to provide structured training and up-skilling specifically aimed at mid-level career 
professionals in order to support and promote more commercially-oriented film-making practices, and to 
develop film professionals and content which are competitive at a local and global level. The incubator 
programme is run in partnership with and is hosted at the Smartxchange Technology and Innovation 
Incubation Hub. Through this partnership producers are given access to subsidized office space and various 
business training programs. In addition, producers are provided access to professional producer skills 
development and project development support. 

KZN Music Cluster 

The KwaZulu-Natal United Music Industry Association (KUMISA) is a programme of the Department of 
Economic Development (DED), KZN in partnership with eThekwini Municipality for the purpose of 
furthering the economic development of the music sector. 2013/14 saw the finalization of funding support 
for the cluster from the City and the Province; the nomination and election of the new board and the 
revision of the KUMISA business strategy for the next few years. 2014/15 will see the implementation of 
the revised strategy. 

PROGRAMME 2.5: INVESTMENT FACILITATION AND PROMOTION 

Taking its lead from the international and South African prioritisation of fixed capital investment promotion 
and facilitation, this programme revolves around interventions to attract new foreign direct investment, 
whilst retaining and expanding larger domestic business investment. The core outcomes will be a higher 
Durban investment profile, job retention, job growth, and new revenues for government to use in 
accelerating core infrastructure and service delivery. In addition, the programme aims to offer new 
empowerment opportunities, bring in newer Green Economy business technologies and processes, and 
contribute towards growing export-led development. The 4 main investment promotion and facilitation 
projects that give effect to these Strategic Goals, plus the KwaZulu-Natal Investment Strategy are namely: 

• Durban Investment Promotion and marketing; 

• Existing local Key Investor Aftercare plans and mechanisms, including the business retention and 
expansion (BR&E) program; 

• Foreign investor attraction and facilitation support; 

• New Investment Development. 

The other aim of this programme is to institutionalize a set of pro-development responses for private sector 
fixed investment in the region. The main focus areas include investigating the application of various 
business-friendly tools such as Flagship Project rates rebates; the support for declaration of special 
economic zones; urban development zones; urban improvement precincts; special rated building typologies 
such as green buildings; access to national incentives; access to indirect incentives such as sector support 
and business support programmes; access to marketing support provided through DTI/TISA and locally 
accessed partnerships with Trade and Investment KZN. Other initiatives involve facilitating types of Joint 
Operations Committees (JOCs) in priority business and rural nodes; and promoting, plus facilitating an 
ongoing dialogue and Project specific partnership with local organized business structures. 

Durban Investment Promotion aims to leverage maximum economic benefits from domestic and foreign 
investment, especially in the BBBEE & rural or township contexts. Specific attention and support is provided 
to developers in ensuring a smooth development application process involving commenting and feedback 
from line functions. One of the main goals of the programme is to also support an integrated, multifaceted 
brand identity for the city which can be further adopted as the future vision for the City. In addition, best 
practice structures and optimized delivery have been and will continue to be revisited to ensure 
productivity, value for money and efficient business participation. 


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To this end, the Municipality is currently reviewing the first Best Practice City Commission (BPCC) and in 
addition - plans to assess the existing institutional mechanisms promoting and facilitating investment, with 
particular emphasis on the roles of the eThekwini Municipality. The study will be expected to inform the 
City leadership and officials about the current and new obstacles to investment in the Municipal area, and 
respond with a suite of recommendations and an implementation plan. 

During the period under review the Business Retention and Expansion (BR&E) Programme was reviewed 
and a revised strategy was implemented. The Phoenix Industrial Park Lot Owners Association (PIPLOA), in 
partnership with the Durban Chamber of Commerce and Industry (DCCI), BR&E core Program steps were 
completed in 2013/14. Local PIPLOA Action Team Investor support is on-going and key clients were 
targeted by sectors for high-level engagements. Further across the City, the revised Business Engagement 
Strategy and Key Client Action Plan was activated and the City Leadership began calling on several key 
investors such as lllovo, Tsogo Sun, etc. These will continue into the new financial year and beyond - most 
of which have already yielded significant new investment opportunities in the region. 



Although the department is short-staffed, it has played a key role in engaging with organized business 
structures, viz. the DCCI, the KwaZulu-Natal Growth Coalition, the Institute of Directors, and the various 
Industrial Clusters (such as the Durban Automotive Cluster, Durban Chemical Cluster, etc.). The Dept, 
recently concluded and operationalized the strategic Memorandum of Agreement with the DCCI to 
formalize and better plan for shared business agendas around Durban Investment Promotion plus other 
economic interventions. This will be activated and extended into the new financial year. 

Foreign direct investment attraction and support is on-going as per the refreshed Foreign Investment 
Targeting Strategy and Action Plan. Support is provided to inbound foreign Investor delegations from Korea, 
various African countries, Japan, Germany, UK, USA, China, India, Poland and Reunion, amongst others. 
Outbound Missions have been organised to Germany, Poland and Switzerland. 

In the Green Economy, significant impacts have been made in partnership with the Energy Office utilising 
the joint KSEF (KZN Sustainable Energy Forum) platform with over 500 businesses becoming Members. The 
Forum took decisions in partnership with Council to further formalise the structure into a public-private 
partnership (PPP) Cluster NewCo. Additionally, new ocean current renewable energy partnership projects 
have been formed with a USA-SA Investment Consortia, with demo units expected to be installed under sea 
this forthcoming year. 

Investment promotion and marketing initiatives were undertaken. In addition, business and investment 
events were supported and in some cases co-ordinated. In/Outbound Missions and 
exhibitions/conferences were supported and in some cases co-ordinated. Print Advertisement plus 
Electronic media channels have been used to increase awareness of the City and specific opportunities for 


161 I P a g e 


Investment. The Marketing Strategy is lnvestof9ocused and targeted, and is increasingly making use of 
electronic media and social networking capabilities. 

Lastly, the New Investment Development activities helped to connect larger Investors and their projects or 
businesses to smaller, BBBEE Partners. In addition, more rural investment partnerships and linkages were 
formed. Successful introductions were delivered for LIV Village Business, Busiswa Group, Toyota SA, City 
Couriers Group, Ingabadi Group, Bella and Boo Frozen Yoghurt, and Flying Arrow amongst others. 

PROGRAMME 2.6: FACILITATING NODAL DEVELOPMENT 

This programme fast-tracks the development rights for projects that meet multiple goals for economic 
development and social integration. These projects are based on New Urbanism principles that aim to 
reverse the effects of the Apartheid city, but creating all-inclusive live, work and play environments within 
a racially segregated municipal area. The key tenets of this programme are that of inclusive settlements 
and sustainable residential densities alongside mixed-use business activities and recreational uses. 

Projects include Cornubia, Bridge City, Northern Urban Development Corridor (NUDC), N3 Corridor and N2 
Corridor. In terms of regional development, focus will be on the Cato Ridge-Mkambathini region through 
to Pietermaritzburg as well as the Umswati-KwaXImba region. Further north, areas such as Verulam and 
Tongaat share regional economic linkages with Ndwedwe and the KwaDakuza municipality. The Southern 
Municipal region has strong linkages with the Vulamehio and Umdoni municipalities in terms of agriculture, 
rural communities and coastal tourism linkages. This project seeks to promote regional collaboration with 
neighbouring municipalities in sharing infrastructure to support growth of these underdeveloped areas. 
Furthermore, these regional corridors are priority corridors of the Provincial Spatial Economic Development 
Strategy and dedicated attention is required to unlock these economic regions. In the Outer West, the main 
emphasis will be on unlocking the Durban-Pietermaritzburg N3 freight and port support corridor and in the 
north the effort will be around unlocking airfreight opportunities. In the South, effort will be on revitalizing 
coastal opportunities and identifying manufacturing synergies in both municipalities. 

Land Reform and in the pilot phase to unlock rural nodes and opportunity corridors which may hold 
potential. 

STRATEGIC TOWNSHIP DEVELOPMENTS 

1. KwaMashu 

The Station Traders contract is underway in order to better accommodate the herbal traders that will be 
affected by PRASA's Station Upgrade programme. The contract is scheduled to be complete by March 2015. 

At the KwaMashu Town Centre, Ithala Finance and Development Corporation is finalising cost benefit 
analysis in order to ascertain the viability of revitalizing the KwaMashu Checkers centre, provide parking 
facilities for the proposed park and ride facilities and parking facilities that ensure that the KwaMashu Town 
Centre, including Princess Magogo functions optimally. 

The construction of the KwaMashu Furniture Incubator, by Furntech, is progressing well; and once complete 
at least 20 SME's will be producing world-class furniture for sale to the local residents and the SADC as a 
whole. 

A 'needs assessment' is being undertaken to ascertain the most appropriate area for a government 
customer services centre at Bridge City. Further to this. Bridge City requires commitment from eThekwini 
with regards the underpass; that will connect KwaMashu and Phoenix Industrial Park a lot better. This 
project is commonly known as the Bridge City Half Diamond interchange. 

2. Clermont 

Clermont is receiving a lot of attention in order to establish a Town Centre, by creating a link road at Zazi 
Street, ensuring that 12*^ street better connects Zazi Street and the P577. Whilst there were delays in 
acquiring properties for this purpose, consultative process is underway with regards the Clermont Town 


162 I P a g e 



Centre project. The electricity sub-station, taxi+anS, public realm, swimming pool. Sugar Ray Xulu stadium 
have all already been built and upgraded at a cost of approximately R60 million. 


3. Mpumalanga 

The Mpumalanga Mall in Mpumalanga Township was launched and is operational. The Hammarsdale 
industrial area is being marketed to promote industrial services. In addition, Kelly Road is being upgraded 
for street trading facilities, in as much as Shezi Road is being upgraded to have better connectivity between 
the Mpumalanga Mall and the "old" Boxer Store node. 

4. Umlazi 

Umlazi has two corridors, the M30 and the M35, and numerous nodes along those corridors. Presently 
Projects are focused on the V-section node (Max and surrounds) and the D-section node (KwaMnyandu) to 
get the greatest amount of impact. For the V-section a precinct plan, traffic impact assessment and traffic 
road layout is being finalised, so as to have supporting infrastructure that supports local economic 
development in the area. 

At D-section the King Zwelithini Stadium and surrounding areas have received public realm upgrades. The 
KwaMnyandu Shopping Centre opened its doors to the public on 04 June 2014 and additional public sector 
investment is earmarked in the 2014/15 financial year in order to improve the functionality of the node. 

TOWN CENTRE RENEWALS 

Tongaat, Verulam and Isipingo have received favourable public realm upgrades that have changed the 
complexion of the town centre and revitalized the socio-economic activity taking place. 

The partnership with the TongaatHulett to construct the Blackburn link road at Cornubia is being 
implemented and will contribute towards unlocking the industrial park at the major mixed-use residential- 
commercial development at Cornubia in order to promote employment. 

TOURISM NODES 

Economic Development Projects have earmarked the Westbrook, Umhianga, Warner, Umkhomazi and 
Umgababa beaches in order to promote domestic tourism and assist local communities access recreational 
and retail facilities within walking distance. 

SECTOR SUPPORT 

Economic Development Projects is supporting the formulation of a socio-economic framework for Warwick 
that has resulted in a comprehensive Job Opportunities Centre and non-motorised pedestrian links that 
better engage the Warwick community, with the proposed PRASA station upgrade and any future 
developments in the area. 

PROGRAMME 2.7: SUPPORT AND GROW THE FRESH PRODUCE INDUSTRY 

The Durban Fresh Produce Market facilitates the distribution of Fresh Produce. Commercial farmers, small 
and emerging farmers are dependent on the Bulk Fresh Produce Market in order to sell their fresh produce. 
This platform creates business opportunities for big, small and emerging businesses, inclusive of informal 
traders from where they can purchase their fresh produce. Businesses involved in the wholesale and retail 
distribution of fresh produce are also dependant on the Bulk Market. In addition, businesses other than 
those involved in wholesale and retail distribution (e.g. processing, entities, etc) are also dependant on the 
Bulk Market. The Bulk Market contributes extensively towards both creating and sustaining jobs in the fresh 
produce sector. 

The Durban Fresh Produce Market has the distinction of being the biggest distributor of fresh produce in 
KwaZulu-Natal and the third largest Market in South Africa. It has emerged as one of the leaders in the 
fresh produce industry, confirming the importance and necessity of the Municipal Market as an effective 
Marketing mechanism to the producer and an accessible source of a wide variety of quality produce to the 
buyer. 


163 I P a g e 



166 

The continued and growing support for Durban Market by producers (throughout the country) and buyers 
has been exceptional and evident in the record turnover of approximately Rl,2 billion rand for the first time 
despite the increased pressure on the Market from other emerging marketing options. 

This is largely achieved through the continued good relationship with role-players in the industry by 
Management and Market Agents and the effective service offered by Market personnel. The recent 
appointment of a Manager: Marketing has enabled the market to focus more effectively on promoting the 
market. Durban Market has in the last few years undertaken substantial upgrading and development of its 
facilities to ensure that the facilities remain up-to-date and commensurate if not superior to that of the 
other major markets within the country. An initiative in this regard which is also a proto-type for the country 
is the auto-safe device. The project was implemented jointly with the City's current banking service 
provider. The auto safe enables buyers to deposit cash directly into their buying account, thus reducing 
time spent on the market. The pilot project was implemented initially and has now proven to be very 
popular amongst informal buyers, especially those that frequent the market in the early hours of the 
morning, whilst the cashiers are still closed. 

The annual profit for the financial year amounted to R 21, 9 million. The profit realized is after spending a 
sum of R 6m towards maintenance related expenditure as the need to maintain the facilities to an 
acceptable standard is of paramount importance. 

The Durban Fresh Produce Market continues to strive to be the best Fresh Produce Distribution Centre in 
South Africa. 

PROGRAMME 2.8: SMME DEVELOPMENT AND THE INFORMAL ECONOMY 
1. Business Support 

Small businesses are vital contributors to the health of the economy and offer a diversity of opportunity in 
our Society. The Small Business Support Unit creates an enabling environment to help people to earn a 
living and rise out of poverty and in turn, over time they create jobs as well as empower other individuals 
and the communities in which they live. Moreover, it encompasses access to finance, entrepreneurial skill 
development, enabling the start-up of small businesses to providing business skills development through 
training, mentoring, coaching. It offers operational assistance to small, black-owned enterprises, which is 
also a core component of the SA Government's BBBEE strategy and globally recognised as an effective way 
of reducing poverty. 

Through this Unit a platform is created for women-owned and youth-owned enterprises to develop into 
sustainable businesses. There is also a platform created for sector programme such as construction, tourism 
development, arts and crafts and the ICT sectors. Access to markets are facilitated through the Exhibitions 
and Fairs as well as a Business Linkages Programme, however, there is room for more opportunities through 
preferential procurement policies. Research and the development of policies and strategies are critical to 
the growth of small businesses and further to the Government's proposed strategy of partnerships; the 
Unit develops strategic partnerships for the purposes of engaging the private sector for both their resources 
and expertise in the development of SMMEs. 

These programmes assist in the delivery under the third strategic pillar of the PSEDS, specifically broadening 
participation in the economy. The program also provides assistance in the establishment of retail business 
and the financing of Local Business Service Centres (LBSCs). It also provides business support to the 
construction and ICT sectors. It also strives to forge links with the Durban Chamber of Commerce and 
Industry in an attempt to establish strategic partnerships and promote access to finance for entrepreneurs. 
This Unit seeks to provide and maintain existing infrastructure that act as means of support for 
entrepreneurs. It also ensures the enforcement of the relevant municipal market by-laws and market policy. 


164 I P a g e 



Informal Trade 


167 


The Unit also facilitates the management of the informal trading sector, especially street trading which is a 
demanding task involving demarcation of trading areas, issuing of permits, organising traders into area 
committees that feed into a citywide forum, and on-going collection of rentals. Coupled with this, is the 
necessary enforcement of regulations and by-laws in conjunction with the Metropolitan Police, as well as 
negotiations and dispute resolution where the interests of residents, traders and the formal economy come 
into conflict. 

There is fully-serviced infrastructure for informal traders provided to date valued at approximately R250m 
for services such as structures, ablution facilities, storages, access to water and services, etc. 

EThekwini was the first City to adopt the Informal Economy Policy and established 16 retail markets, 15 
containers Parks, 10 flea-markets throughout the region. The unit registered 45,572 vendors in the informal 
economy sector on the computerized Revenue Management System (RMS) generating roughly R36, 6m in 
monthly revenue. 

There were capacity building programs for informal workers, e.g. financial literacy with close on 5000 
traders benefiting, business management skills training for 2000, 1000 vendors attended food safety 
training and 3000 traders received loans through the Standard Bank Thuthuka Fund, trained 1000 
machinists. 

The informal trade team facilitated the establishment of the Informal Economy Stakeholder Forum, which 
is a leadership structure allowing stakeholders to engage in dialogue on strategic issues affecting the 
informal economy, comprising formal business representatives, trader organizations and committees, 
various municipal departments, enforcement agencies, councillors and provincial departments of economic 
development officials for the advancement of the informal sector. 

Strategic Partnerships 

The unit entered into several strategic partnerships. 

Strategies and Policies 

• The Access to Finance Strategy has been developed and the unit signed MOU's with 7 Financial 
Institutions. 

• Markets Policy was approved. 

• Community Tourism Strategy was finalized 

• SMME Impact Assessment Study was finalized 

• Compilation of the Enterprise Development Strategy has commenced 

Access to Finance 

An amount of RlOm in loans was secured from ABSA for the emerging and informal businesses. In 
2013/14 we engaged NYDA, NEF, SEFA, Enablis and SARS to assist our SMMEs with non-financial 
support. 

Access to Information 

The unit held several empowerment workshops with the objective of giving relevant business support 
to emerging entrepreneurs and existing business owners. 

• 125 BEE Workshops 

• The unit held 10 empowerment workshops in the following areas: 
Makhutha, Magaba, Mkomaas, Matata, Flazelemere, Maphephetheni, Cato Crest, Chesterville, 
Mzinyathi and Ntshongweni 

• The unit also held 3 Business Indaba's in the following areas: Pinetown, Mega City in Umlazi and 
Bridge City in KwaMashu. 


165 I P a g e 



• Durban Business Fair Gala Dinner was arrernded by 750 guests and sponsored by Transnet. The fair 
received over R2, 3m worth of sponsorship and received 14,000 visitors. The fair hosted businesses 
from the Sister Cities and was visited by international Mayors from Bulawayo, Zimbabwe and L'e 
Port, Reunion Island. The programme was given a makeover and rebranded, and in 2011 a new 
name and logo for the fair was in place. 

Support to Enterprises 

Various training programmes were coordinated by the unit and it benefited over 7400 people in 
various industries in order to improve their skills. 


DURBAN FASHION FAIR 

Objective: exposure to international fashion culture, fashion business sustainability, enhancement through 
innovation and creativity, lifestyles, market trends, exposure to international fashion trade fairs, 
technical skills enhancement through fashion houses internships 




David Ttale 


FASHION SHOW SCHEDULE 


Freddy Oesignz 
St Luke 
Emerald Gold 


DFF Collective 
(Past Interns) 

Africa Collections #1 
Alfalfa 
She by Bena 
Abrantie The gentlemen 

ThulaSindi 

African Collection #2 
Brertda Quin 
Charity Nyirongo & 
Clemas 


African Collection #3 
Black Pepper 
Shadow by Sidumtso 
Rebelkxjs Klothing 
Sibu Msimang 
AmosEDC 
Tribal Skin 


Massimo Crtvelli 
(Milan) 


CSquared 


sedom .. 

jetlrekwini 






BLURRED LINE 

10:00* I POPupShop | SERVICINGTHE 
12K)0 Open each day from 10^10 HYBRID CUSTOMER 

' by Dion Chang 


Palse 


Enr>ergin8 Designer 
Collections 


Nguni Shades 
Amreuby by Odyssues 


WHO. WHAT, WHEN. 
WHY AND HOW S/S 
2015 

by Nicola Cooper 
(T rends Presentation) 


Karen Monk-Klijnstra 


Terrence Bray 
Colleen Eitzen 


Kathrin Kidger 
Zarth 


Tilt Mcna'in' teaMiZWb 


166 I P a g e 




169 


Access to Markets 

The unit facilitated various market opportunities locally, nationally and internationally and these 
benefited over 800 businesses: 




Support for Sectors 
Women Empowerment Programme 

Is seeking to address gender inequity in a quantifiable manner, and to strengthen some of the 
transformation initiatives already introduced by government, i.e. women's inclusion in terms of programme 
participation and representation and, most importantly, in terms of resource allocation. This will help 
ensure fair and gender-sensitive resource allocation and pave the way for women's entry into economic 
activities previously reserved and currently heavily dominated by males. 


167 I P a g e 



170 




Tourism 

The role of Durban Tourism is to promote the city as a premium lifestyle destination locally and 
internationally. The key drivers that form the strategic focus of increasing tourism to the city, beyond the 
traditional seasonal holidaymakers that Durban has relied on in the past, are sport, events and MICE 
(Meetings, Incentives, Conferences/Conventions and Exhibitions). These key drivers are essential in 
transforming the image of the city from that of a local beach resort destination into an all-year-round, high 
profile, internationally-recognized and competitive destination. 

Durban Tourism utilizes the opportunities offered by international events, conferences, meetings and 
incentive programmes to market the city as a diverse and varied cosmopolitan location with a melting pot 
of activities from which to choose. 

Many of the key cultural and historical places of significance are in historically disadvantaged areas and 
require management and tourism training to nurture a new culture of tourism through the EPWP 
programmes such as Working for Tourism. 


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■ 1000 Hills R1 30,000 

■ Durban West R225,000 

■ Sodurba R 225,000 


■ Claremont R600,000 ■ Durban R225,000 

■ Inanda / Kwa Mashu R600,000 ■ Sapphire Coast R1 50,000 

■ Umlazi R600,000 ■ Umhlanga Coastline R22 5,000 


The role of the City to: 

•Hold monthly meetings with their Community Tourism Organisations (CTO's) 

•Ensure that their CTO's are fully representative of all tourism stakeholders in their community 
•To provide a fully operational, equipped and staffed tourism office for the CTO and hand it over 
tothe CTO to manage 

•Provide 50 % of the operating funds for the CTO 

EThekwini Support for Community Tourism Organisations (CTO's) 

• Institutional support, ensuring they are properly constituted and registered as legal entities, 
representing all tourism related stakeholders in their respective areas. 

Ohiange Interpretation Centre 



169 I P a g e 








Sapphire Coast Achievements 




PROGRAMME 2.10: SUPPORT THE TOURISM SECTOR 

After 20 years, a more visible Durban has made a spectacular comeback boasting major development, 
transformation and positive strides in the leisure and business tourism industry. The city recently received 
massive recognition after CNN voted Durban as one of the world's top 10 underrated cities. The city was 
praised as liveable, a wealth of creative hubs, championed by locals and worth more than a quick stop 
before heading elsewhere. 


170 I P a g e 







In addition, Master Card Global Destination City Index has predicted Durban with its important and busy 
seaport, will be the year's fastest growing city in Africa and would be the second fastest growing tourism 
city of the 132 cities surveyed worldwide. 

Durban Tourism promotes the city as a premium lifestyle destination locally and internationally. The key 
drivers that form the strategic focus of increasing tourism to the city, beyond the traditional seasonal 
holidaymakers that Durban has relied on in the past, are sport, events and MICE (Meetings, Incentives, 
Conferences/Conventions and Exhibitions). These key drivers are essential in transforming the image of 
the city from that of a local beach resort destination into an all-year-round, high profile, internationally- 
recognized and competitive destination. In so doing, we need to project the image of Durban as a lifestyle 
destination that meets the requirements of modern consumers, be they international or pan-African 
tourists, business travellers, conference attendees or holidaymakers from within the borders of Southern 
Africa. 

Durban Tourism uses the opportunities offered by international events, conferences, meetings and 
incentive programmes to market the city as a diverse and varied cosmopolitan location with a melting pot 
of activities from which to choose.The aim is to have firstly a sustainable schedule of sporting events, 
general events and publicity campaigns, and a steady flow of Meetings, Conferences/conventions and 
Exhibitions in the city. The programme also aims to package incentives for prolonged and value added tours 
that further promotes the city. Another key focus of this programme is to ensure that current and future 
tourism investments such as facilities, infrastructure and services are maintained at international standards 
of consumption. Key maintenance projects include supporting the beaches, parks, people-mover system, 
the ICC, Moses Mabhida, UShaka Marine and other iconic facilities provided by the city. 



171 I P a g e 





This programme aims to establish a single rurafTOurism development champion that will initially focus on 
nature, cultural, heritage and adventure tourism products in areas such as Inanda, 1000 Hills, KwaXimba, 
Hazelmere, Umgababa/Umnini, and other rural areas where tourism opportunities exist. As part of the 
programme, the focus will be on establishing, public-private and community partnerships in 
operationalising tourism products, services and maintaining infrastructure and facilities. These routes need 
to be given priority in order to create sustainable opportunities for a wider section of society and in so doing 
add to the tourism interest in cultural and social history. It is essential that all people in the Municipality 
are made aware of the importance of tourism. 

The City has taken a strategic decision to broaden the tourism footprint for the eThekwini region, which 
historically marketed the city as a beach destination, by unlocking the rich cultural, historical and heritage 
experiences included in Inanda, Umlazi and Claremont. For the 2013/14 financial year the Inanda heritage 
route continued to be widely promoted. 

The Durban Tourism's Visitor marketing Strategy was launched during 2013 - this aligns itself to the KZN 
Provincial and National Tourism Strategies. This Strategy constitutes the driving force in mobilizing the 
quantum and quality of visitors to the city and has transformed Durban Tourism into a visitor-focused 
organization that orchestrates the city's marketing needs to attract talent, businesses, investment and 
tourists. It has also cited its top four core markets as the United Kingdom, Germany, United States and the 
Netherlands. The domestic market is still Gauteng. The visitor number is projected to increase from 3.5 
million in 2013 to 5 million in 2020 of which one million will be international visitors. This will mean an 
economic spin off of RlO-billion in 2020 for the city and job creation of approximately 74,000 in 2020. 

Our international marketing campaigns included the partnership with National Geographic in which a sixty 
second vignette was produced and televised on the National Geographic global television network 2800 
times. A one hour documentary in partnership with Cape Town Tourism was produced and launched in 
London in April 2013 by the Deputy Mayor of Durban. The event was attended by travel agents, tour 
operators and travel media personnel from Europe. The documentary was broadcast in 160 countries and 
with a viewership in excess of 350 million in 16 languages. Work has commenced on the second 
documentary which will be launched in 2015. 



The City hosted six African Cup of Nations Soccer matches during January/February 2013.These games 
provided a great opportunity for Durban to promote and showcase our tourism experiences and world class 
infrastructure to the world through Eurosport Television, the exclusive broadcast partner of AFCON. Durban 
partnership with Eurosport TV included a total of 210 thirty second TV adverts of Durban before, during 
and after the games with interviews of some of the fans. They also televised some of the footage of 
Durban's tourism assets such as uShaka, ICC, Gateway Shopping mall and the Inanda Heritage Route. 
Eurospot TV reaches 130 million viewers in 59 countries which include many of our international source 
tourism markets. 


172 I P a g e 



PROGRAMME 2.11: URBAN RENEWAL 


175 


The Urban Renewal Unit identifies appropriate projects that would support this programme. Some of these 
include the Kings Park Sports Precinct and Victoria Embankment projects. Some of the major threats to 
investment and upgrades in the Durban inner city include: lack of parking; unsafe pedestrian environments; 
unsatisfactory public realm maintenance; illegal building occupancies; general blight at the Back of beach 
areas; uneven public investment and high crime rates amongst other issues. This programme is aimed at 
packaging and unlocking strategic catalytic projects that have a ripple effect on derelict quarters of the 
inner city and thereby stimulating interest in investment through property (block) value appreciation. The 
intention is locating strategically key investments to act as multipliers on surrounding land uses and sub 
precincts. The main goal is to attract high impact investors into the inner city in order to stimulate further 
investment in different quarters of the CBD to act as regenerators of these precincts. 

Since inception of this Unit in 2006, the focus of its attention has been the overall project management of 
the 2010 World Cup and its various supporting programmes. More recently the Unit has continued with the 
upgrading of the Central Beachfront and development of operating maintenance initiatives for landscaping, 
electrical infrastructure and security along the entire Central Beachfront. The Unit has also continued to 
fulfil an oversight role at the Moses Mabhida Stadium in respect of the Caretaker Operator, Capital projects 
and operating expenditure controls. 

In addition to the above, the Unit has continued to build on its close linkage to the eThekwini Transport 
Authority in providing project management and implementation support in the roll-out of cycle lanes as a 
component the ETA's Non-motorised Transport initiative and also the infrastructure works for the 
successful hosting of the Top Gear Festival. 


As this Unit is responsible for packaging, unlocking and implementing catalytic projects, the focus going 
forward will in all likelihood be in the redevelopment of Kingspark sporting precinct, back-of-beach areas 
and other catalytic projects within the Municipality. 



PROGRAME 2.12: DEVELOP AN INTEGRATED FREIGHT AND LOGISTICS STRATEGIC FRAMEWORK AND 
PLAN 

The Integrated Transport Plan (ITP): 2010-2015 documents the municipality's transport policy, strategy and 
implementation projects. One of the goals for transport in eThekwini, amongst others, is to develop an 
efficient and integrated freight transport system that will ensure regional economic stability. The region's 

173 I P a g e 


transportation system requires the optimum intention of the different modes of transport that includes 
road, rail, aviation, maritime and pipeline with the appropriate modal balances. 


To this end and in line with legislative provisions, the eThekwini Transport Authority (ETA) is in the process 
of developing an Integrated Freight and Logistics Strategic Framework and Action Plan for the entire 
eThekwini Municipal area. This plan will focus on resolving current and future freight and logistics 
requirements and challenges for the municipal area. The plan crucially supports industry requirements and 
how each mode connects with the broader economy of South Africa and the world, while still ensuring 
efficiency and ease of doing business within the municipal area. 

The elements of the Integrated Freight and Logistics Plan will comprise: a thorough Status Quo Analysis of 
freight and logistics sectors in the city; a strategic framework that would guide the future development and 
strategy around future freight development; and an implementation plan that will incorporate 
interventions that will address the following: 

Infrastructure; 

Operational; 

Regulations and enforcement; 

Communication, networking and ICT 

The formulation and implementation of this plan will involve a number of stakeholders and agencies in 
government and the private sector. It is anticipated that much of the work will also revolve around trying 
to secure a commitment on the implementation of the various elements of the plan from relevant agencies. 

Economic and labour indicators for 2013/14 


Economic Employment by broad Sectors 

Sector 

2013/2014 

Agriculture 

25,350 

Mining 

2,981 

Manufacturing 

186,612 

Electricity 

4,060 

Construction 

68,168 

Trade 

183,332 

Transport 

70,869 

Finance 

187,985 

Community services 

194,249 

Flouseholds 

1,022,818 


Gross Value Added broad Sectors, 

Constant 2005 Prices (RIOOO) 

Sector 

2013/2014 

Agriculture 

2,226,435 

Mining 

299,695 

Manufacturing 

42,733,325 

Electricity 

3,929,426 

Construction 

6,438,177 

Trade 

32,928,028 

Transport 

30,783,792 

Finance 

43,488,741 

Community services 

32,514,990 


174 I P a g e 





3.11 SECURITY AND SAFETY 
INTRODUCTION 


177 


2013/2014 has proved to be a difficult period for policing in South Africa especially with regard to police 
action in Marikana-LonMine strike. This has brought local and international focus on police use offeree and 
their ability to handle both violent and non-violent protests. To this end, the Durban Metropolitan Police 
Service has trained more than 220 police constables on crowd control in conjunction with SAPS and other 
Metro's. Similar to other municipalities, the Durban Metropolitan Police Service has been plagued by a 
number of protest marches, service delivery protests and demonstrations. 

Demonstrations by Taxi industry due to police enforcement of the National Road Traffic Act and City Bylaws, 
together with striking disgruntled employees, both within the Police and other departments remains a 
challenge for Police management and the City. 

Other challenges confronting the department are suicides, post-traumatic stress and complaints of sexual 
harassment. In addition to the usual skills development conducted the Department also conducted special 
training on sexual harassment and post-traumatic stress, in an effort to empower staff and reduce stress 
and factors that would interfere with good working relations between the sexes. 

Police management remains committed to fulfilling its legislated responsibility in terms of traffic, bylaws 
and crime prevention and continues to work in close collaboration with other Council departments; 
relevant Provincial and National components and community based organisations to meet needs of 
communities and achieving the vision of a safe and secure City. 

Highlights of 2013/2014 

• The police together with other stakeholders embarked on a successful project to clear Whoonga 
park of drug addicts and reduce criminality in and around that area and deter criminals from using 
our underground waste water tunnels as an escape route after committing crimes in various parts 
of the city. 

• The police department is a major role player in the Mayor's clean- up campaign in providing security 
to other departments and identifying transgressions within the City. 

• "Child- in-Traffic" programmes and other safety talks related to crime are given in the schools as 
noted in the image below. Tours were also arranged for a number of scholars to Durban key sites, 
like Ushaka, Moses Mabida, ICC and the Beach promenade 



Crime 

A feasibility study was conducted to ascertain the ability to implement the Domestic Violence Act. This 
stemmed from a National instruction and a change in the Act to include the large Metropolitan police 
services as enforcers of the Domestic Violence Act. 

A pilot project will be commenced in one of the Durban south areas in 2014/2015. 


175 I P a g e 



Whilst the reduction in crime is noted, there afe «ill areas of concern within the Municipality, for which 
Durban Metropolitan Police Service together with other stakeholders and role players have prioritised. 
These relate in the main to common law offences such as murders, robberies, hijacking, theft of and out of 
motor vehicles and housebreaking. 

Statutory offences such as drunken driving and drug related crimes are also of a serious concern and 
statistics reveal an increase in arrests for these two crimes. 

Drunken driving and other driver related behaviour are major contributors to accidents resulting in serious 
injuries and death. Whilst a number of road blocks are held each year, there is a serious constraint in 
sentencing of drunken drivers due to the backlog in blood analysis. The department is currently exploring 
other avenues together with Justice Department to speed up processing of prosecutions of drunken drivers. 

Number of Arrests Drunken drivers = 3049 

Arrest in terms of Drug Act: 205 

Traffic 


Road works and defective trucks continue to be the two major contributory factors to traffic congestion 
during peak periods. Traffic congestion around Umgeni road and N2 will be reduced once the road works 
are completed. Whilst the daily deployment of police members to the area has helped to ease the 
congestion slightly, the problem will be eliminated when the road works are completed. The issue with 
trucks, however, is still a major concern and the daily breakdown of trucks and accidents involving trucks is 
receiving attention. 

Total number of charges of Defective vehicles for 2013/2014 = 161830 
Total number of vehicles suspended: 2798 

Traffic updates are given three (3) times a day to Ukhozi FM, East Coast Radio, Vuma FM, Radio Imbokodo, 
IzwiLomzansi Radio, Igagasi FM, Flindi Vani Radio, Radio Al Ansaar, Lotus FM and weekly to SABC TV, Gareth 
for Traffic Net, Robin for SABC in general, E TV. 

Fines Processing and Drivers Test Centre 

A new tender calling for proposals relating to technology to assist officers on the ground is still in progress 
and likely to be finalised within 2014/2015 financial year. The tender will include, inter alia: 

• Technology to issue charges electronically, and which can be processed online, 

• Mobile automatic number plate recognition systems fitted into police vehicles, to assist in 
identifying motorists with outstanding fines, whilst travelling within the city, rather than rely on 
stationary roadblocks, 

• Additional enforcement technology for deployment across the city 

The income generated in the 2013/2014 financial year by the Traffic Fine Unit is R183m, Vehicle Licensing 
(RIO, 7m) and the Driver License Test centres (R25m). The challenges facing these entities are the waiting 
period for driver's tests, especially heavy duty and infrastructure. The waiting periods for learner and driver 
tests within these facilities have been maintained and still shorter than other centres in the Province. It 
should also be noted that in order to improve service availability to the residents of eThekwini these 
facilities are now open two weekends a month (Saturday and Sunday). 

Bylaws 

Police Management is responsible for coordinating and monitoring the City's Integrated Bylaw enforcement 
plan with a target completion date in 2015. This is part of a city wide initiative to clear Crime and Grime in 
the central business districts and ensure greater compliance to City Bylaws 


176 I P a g e 



The need for a common set of Bylaws for the City^^still a pressing concern and a challenge to enforcement. 
The Legal Unit has made significant strides in finalising this issue and it is still anticipated that a new set of 
bylaws will be available for implementation in 2014/2015. 


Table 3.11.1 Metropolitan Police Service, Statistics of Annual Charges of Traffic, Bylaws and Crime 


/^65642 


/ 169978 \ 

\ ■ Traffic 


■ Bylaws 


/ ■Crime 


608696 / 


The number of police in the field on an average day has reduced by a further 49 as a result of resignations, 
deaths, dismissals, medical boarding and pension .Vacant posts have not been filled for the last 3 years and 
no new recruiting has occurred in this time. This presents a serious challenge in providing an efficient service 
and supervision of members on the field. service and supervision of members on the field. 


Table 3.11.1 Metropolitan Police Service Data 

Details 

2009/1 

0 

2010/11 

2011/1 

2 


2012/2013 

2013/2014 

Actual 

No. 

Target 

No. 

Actual 

No. 

Target 

No. 

Actual 

No. 

Target 

No 

Actual 

No. 

Target 

No. 

Actual 

No. 

1 

Number of By- 
Law 

Infringements 

attended 

250513 

278348 

161502 

177652 

272957 

815007 

traffic 

and 
bylaws 
as per 

SDBIP 

841300 

traffic 

and 

bylaws 

733806 

78033 

5 

2 

Number of 

Police officers 

in the field on 
an average day 

520 

1009 

851 

1009 

792 

922 

799 

757 

743 

3 

Number of 
police officers 
on duty on an 
average day 

620 

1109 

906 

1109 

941 

1071 

1009 

923 

895 


177 I P a g e 


180 


3.12. DISASTER MANAGEMENT 

The Disaster Management and Emergency Control Unit was established as a new unit in January 2011 and 
provides, across the entire municipal area on a 24/7 basis, emergency services in terms of call taking and 
dispatching for all emergency situations for Fire, Metro Police, etc., CCTV crime surveillance and traffic 
monitoring as well as disaster management operations and programs and risk assessment and reduction 
programs. 

The Unit also provides support for the business plans of various municipal departments by providing 
strategic guidance, planning, executing and carrying responsibility for quality management pertaining to 
projects in terms of project outputs, scope, time, quality and cost with reference to implementing 
technologies to move the municipality to a stable and improved networking, electronic and 
communications infrastructure catering for the upliftment of the citizens. 

The Unit consists of: 

1. Disaster Management; 

2. Emergency Mobilising and Communication Centre (EMACC) 

3. CCTV Control Room; 

4. Technical and Specialised Services; 

5. Administration 

3.12.1. DISASTER MANAGEMENT DEPARTMENT 

The Disaster Management function is mandated by way of the Disaster Management Act 57 of 2002 and 
the National and Local Disaster Management Frameworks, the latter reflecting four Key Performance Areas 
[KPAs] and three Performance Enablers [PEsj. These KPAs and PEs form the basis of all disaster management 
programmes, with Risk reduction being the primary goal. 

3.12.1.1 Municipal Disaster Management Centre [MDMC] 

The Disaster Operations Centre [DOC] becomes operational during disasters, serious emergency incidents, 
major exercises, and during major events. It is the platform from which coordinated operations are run. 
The DOC has a network infrastructure which facilitates linkage and integration of CCTV, communications, 
incident log and other spatial and non spatial data and can display this onto a video wall board. The Centre 
co-ordinates operations on international, national, regional and local events on an ongoing basis. 

The Disaster Management Department is continually hosting national and international delegations who 
visit our centre in order to network with our staff and benchmark their needs against what we have. 



MUNICIPAL DISASTER OPERATIONAL CENTRE 


178 I P a g e 



1 


MUNICIPAL DISASTER OPERATIONAL CENTRE 

3.12.1.2 SDBIP projects linked with THE IDP 

The following programmes were undertaken during the past financial year and achieved the targets 
indicated. Further explanation on the projects is explained below. 

Risk Assessment 

A disaster risk assessment is a process to determine the nature and extent of risk by analysing potential 
hazards and evaluating existing conditions of vulnerability that could pose a potential threat, or cause harm 
to people, property, livelihoods and the environment on which they depend. Risk assessments are based 
on the technical features of hazards, such as their location, intensity, frequency, probability and an analysis 
of the physical, social, economic and environmental dimensions of vulnerability and the coping capabilities 
pertinent to the risk scenarios. 

The Disaster Management and Emergency Control Unit has commenced with a comprehensive city wide 
risk assessment study. An external service provider has been awarded the contract to undertake the risk 
assessment. The risk assessment process will be conducted using a staged approach, commencing with the 
collation of spatial and non spatial data and the analysis thereof. The information generated will affect all 
Council Clusters and will address developmental initiatives, risk reduction strategies, and how 
vulnerabilities are classified, categorised and prioritised. The outcome of the study must inform all risk 
reduction initiatives implemented by all Departments in the Council. 

One of the objectives of the Risk Assessment is to identify the most vulnerable communities, invariably 
those in informal settlements and in close proximity to Major Hazardous Installations. The intention is to 
reduce risk exposure through appropriate programmes. The assessment is sub-divided into a High-Risk city- 
wide study and a concentrated South Durban Basis focus. 

Establishment of an Advisory Forum 

The establishment an Advisory Forum at Metropolitan Council level is optional. Nevertheless, the eThekwini 
Municipality has elected to implement this structure as an advisory and consultative body in order to draw 
in community and professional representation. The Forum will aid the City to identify priorities and give 
input on risk reduction initiatives. The information generated will affect all Council Clusters and will address 
developmental initiatives, risk reduction strategies, and how vulnerabilities are classified, categorised and 
prioritised. The Forum with three Technical Task Teams has been ratified by EXCO and meets quarterly 
under the Chairmanship of the City Manager. A two-pronged approach was implemented; the first enlisted 
an internal component of officials and the second approach is to invite participation from other 
Government sectors, academic institutions, NGOs and the general public. 

Corporate Disaster Management Plan 

The Corporate Disaster Management Plan has been developed and approved by the DM Advisory Forum 
and ratified by EXCO for implementation. The Plan is reviewed annually. The purpose of the Plan is to 

179 I P a g e 



MOBILE CARAVAN AT DISASTER SCENE 



outline policy and procedures for both the pro- aCTrTO disaster prevention and the reactive disaster response 
and recovery phases of the disaster management continuum. It focuses on facilitating multi-agency and 
multi-jurisdictional coordination, with emphasis on emerging crisis or novel events. The Plan provides the 
broad framework within which the disaster management planning requirements of the Act will be 
implemented by various departments of Council. It establishes the directives for risk reduction initiatives 
and the strategic incident management protocols in the event of a disaster occurring or threatening to 
occur. 

Volunteer Programme 

Ward-based Disaster Management components have been established in forty five percent of the one 
hundred and three Wards in the Municipality. Volunteers are trained in disciplines such as First Aid, Home- 
based care, trauma counselling and fire fighting. The programme assists in risk awareness, public education, 
skills development, emergency response and community-spirit upliftment. 

In compliance with the Disaster Management Regulations for Volunteers, 300 persons have been medically 
processed and signed up as formal Disaster Management volunteers. Sixty of those have attended a fire 
training course and can be deployed in support of the Brigade if so required. The skills-training afforded to 
these volunteers, facilitates their deployment at events or incidents under the umbrella of Disaster 
Management and related disciplines. 


3.12.1.2 SERVICE STATISTICS FOR DISASTER MANAGEMENT - Response and Relief 


Major Fire Related Incident 
Response 

More than 100 people affected 


Blankets Issued 
Food Packs 
Food Hampers 
Declared Disasters 


5675 

3734 

834 

Nil 


03'''^ August 2013, Redhill Settlement Fire 
22"'' August 2013, New Germany Settlement Fire 
24'^' August 2013, Quarry Rd Settlement Fire 
OS"* November 2013, Kennedy Rd, Settlement Fire 
07'^' April 2104, Sim Place Settlement Fire 
25'*^ April 2014, Burnwood Settlement Fire 
06'*^ June 2014, Kennedy Rd Settlement Fire 

Fire related: Rainstorms: 

226 29 




QUARRY RQAD INFQRMAL SETTLEMENT FIRE INCIDENT 


180 I P a g e 


3.12.2 EMERGENCY MOBILISING AND COMMUNI^^^NS CENTRE (EMACC) 

3.12.2.1 The Background to Operations 

This Branch falls within the Disaster Management and Emergency Control Unit. The branch is situated 
within the Municipal Disaster Management Centre and is the emergency call centre for the City of Durban. 
It is a 24/7 operational centre with a hot standby disaster recovery centre that is situated at the Pinetown 
Fire Station. As such, continuity of service is ensured in any event, this primary facility becomes inoperable, 
as the Pinetown Centre is also a 24/7 dispatch centre. The centre services the city by receiving telephone 
calls from citizens that experience potential life and property threatening emergencies. The emergency 
contact number is 031 361 0000. The calls for assistance are acted upon by the alerting and dispatching of 
municipal ground forces, i.e. Metro Police, Fire Department and Disaster Management, who respond and 
deal with property and life threatening emergencies. 

The strategy of the branch is to ensure that all citizens within the city are able to reach emergency services 
timeously when the need arises as every second during a life and property threatening emergency is vital. 

2.2 EMACC Projects 

The two SDBIP projects that have been embarked on is the educating of vulnerable groups on the service 
provided by the emergency number and business continuity process in the event of Telkom central 
exchange failure. Education programs are achieved through the public participation Masakhane Campaign, 
Disaster Management ward safety programs and also through education programs run by the Fire Safety 
Department at various schools in the City. 

We have to date reached a number of people in various awards, including those deem to be vulnerable 
areas. A business continuity exercise has been concluded and the unit has signed a Service Level Agreement 
with Telkom that talks to reaction in the event of exchange failure. Such agreement guarantees that there 
is no longer going to be a down time on an emergency number. The unit has also produced a business 
continuity Standard Operational Procedure, which all operatives within the unit are familiar with. 

The centre also uses a computer aided call taking and despatch system to log and mobilise resources from 
the emergency services in the City. A project to migrate from the current analogue computer system to a 
web based system has been initiated, which is a three year phase rollout that requires capital injection of 
funds spread over three financial periods. This is a work in progress that involves integration with other 
units that provide c-track and CIS services in the City. The system upgrade is meant to meet high level 
business requirements by different units operating within the safety and security cluster in the City. 

2.3 Statistics for the EMACC Centre 2013/2014. 



July 2013 

August 2013 

September 

2013 

October 2013 

November 

2013 

December 

2013 

January2014 

February 

2014 

March 2014 

April 2014 

May 2014 

June 2014 

Total 

Total Calls 

14481 

16364 

15404 

15085 

12185 

14320 

13077 

13208 

14120 

12981 

14611 

15332 

171168 

Other Service 
Calls 

10208 

11489 

10991 

10879 

8358 

10257 

9302 

9049 

9905 

8914 

9990 

10438 

119780 

Metro Police 

Incidents 

5380 

5816 

5649 

5592 

4947 

6280 

5242 

5123 

5427 

4898 

5059 

4812 

64225 

Metro Fire 

Incidents 

1185 

1772 

1380 

1168 

695 

920 

917 

1002 

967 

1247 

1639 

2249 

15141 


Average calls received for July 2013 - June 2014 : 14 264 

Average other service calls for July 2013 -June 2014 : 9 982 

Average Metro Police incidents for July 2013 -June 2014 : 5 352 

Average Fire Incidents for July 2013 -June 2014 : 1262 


181 I P a g e 




20000 


±M 


15000 

10000 

5000 

0 


i L U I k k L 


III11IIIIII11 




<<« 


^ 


■ Total Calls 

■ Other Service Calls 

■ Metro Police Incidents 

■ Metro Fire Incidents 



EMERGENCY MOBILISING AND COMMUNICATIONS CENTRE LAYOUT 


3.12.3 CCTV OPERATIONS 


Closed circuit television is a mechanism used to monitor through cameras positioned at various areas within 
eThekwini where there are high crime incidents, and urban improvement precinct traffic congestions and 
to ensure that CCTV coverage is used to assist in policing crime. The system is designed to offer reassurance 
to the public and create a sense of security and awareness. CCTV is aimed to deter crime and anti-social 
behaviour within the City. Active surveillance systems which monitor live events provide the advantage of 
being able to detect suspicious activities and facilitating immediate response of law enforcement agencies. 
CCTV provides evidence supporting police and other statutory authorities in the prosecution of criminal 
activities. The ability to review footage has aided many investigations and successful convictions. We 
monitor traffic for the purpose of advising and informing response agencies responsible for traffic 
management and enforcement. It is used widely to monitor all major events in the City and provide a live 
feed to the Disaster Operations Centre to display on the video wall. This has proven to be a critical support 
function to the multi-agency joint operations command teams that have operated at the Disaster 
Operations Centre during such major operations. 



CCTV Control Room Layout 


182 I P a g e 




185 


3.12.3.1 Closed Circuit Television Projects 

Decentralisation has been realised in the past year with control rooms being opened and operational at the 
Beach Front and Pinetown respectively. The Beach Front Control Room is situated at the Boscombe Terrace 
and the Pinetown Control Room is situated at the Pinetown Fire Station. This has allowed CCTV monitoring 
to be done closer to the areas and address problems related to a particular area better. 

3.12.3.2 Partnerships 

Urban Management Zone (UMZ) has partnered with CCTV in monitoring Public Realm. Eight of their 
members have been seconded to the Central Control Room to monitor cameras and radio operations. This 
also will assist in minimising the impact of crime within the City as they have members strategically place 
in hot spot areas. 

• Department of Justice has also come on board and created a specialised court for all CCTV incidents. 
Court 12 has been identified for this purpose. 

CCTV DEPARTMENT PROJECTS 2013/14 



PROJECT 

DESCRIPTION OF PROJECT 

AREA 

STATUS 

1 

INK Camera 

installations 

Installation of 5 cameras in the INK area 
(Bridge City, Nyala Road, Dube Village, KwaNozaza 
and KwaMashu Station) 

INK 

In-progress 

2 

Newlands West 

Camera 

installations 

Installation of two Cameras in Newlands West 
Ward 37 (Riverdene Fligh School and Castlehill) 

Newlands 

West 

In -progress 

3 

Isipingo cameras 

Resuscitation and installation of cameras in Isipingo 
CBD. 

Isipingo 

Assessment of current 

infrastructure 

underway 


3.12.3.3 Crime Analysis 

We don't have crime analyst currently, we use crime statistics from S.A.P.S and our statistics to plan for 
effective operations. A video wall is provided for the centre to keep track of movement of crime within the 
city. We are busy compiling a plan for crime prevention and benchmarking with the best CCTV centres 
nationally. 

3.12.3.4 CCTV Operations Statistics 


July 2013 to June 2014 Stats Analysis 


Crime 

Month 

Prevention 

Apprehensions 

Public Fighting 

Totals 

Robberies 

Preventions 

Assistance 

Apprehensions 

Fighting 

July 

67 

42 

7 

26 

48 

190 

August 

78 

81 

5 

49 

61 

274 

September 

69 

68 

6 

21 

46 

210 

October 

60 

74 

10 

34 

54 

232 

November 

53 

58 

6 

22 

59 

198 

December 

50 

37 

8 

27 

44 

166 

January 

39 

29 

14 

10 

36 

128 

February 

27 

45 

15 

24 

30 

141 

March 

21 

31 

10 

13 

35 

110 

April 

40 

41 

9 

20 

54 

164 

May 

50 

59 

15 

28 

64 

216 

June 

59 

06 

05 

35 

75 

180 


613 

571 

110 

309 

606 

2209 


183 I P a g e 















































































































other incidents 
Traffic -1752 

Public Realm -1342 


186 


3.12.4 TECHNICAL AND SPECIALISED SERVICES 

Technical and Specialised Services have over the years developed into a fully functional, supportive, project 
management with maintenance and advisory structures backing up the various systems and equipment 
purchased, installed and commissioned across the Municipality. 

The overall purpose of the section is to support, maintain, improve and implement technologies to move 
the Municipality into a stable and improved networking, electronic and communications infrastructure for 
CCTV, public address system and other specialised systems, catering for the benefit of the citizens. 

We have systems in place to service our needs and the needs of other departments, consisting of tenders 
listed below. 

1. Public Address System 

2. CCTV Requirements 

3. Specialised cameras / thermal 

4. Systems software (Emergency Services) 

5. Maintenance of IT infrastructure (MDMC) 

3.12.4.1 Income generated from infrastructure 

We have a contract between eThekwini and MTN for leasing space on CCTV poles at a cost of R 5 000 per 
month per site with on-going expansion. Telkom and Vodacom have made similar requests, which are being 
formalised. 

3.12.4.2 Closed Circuit Television (CCTV) and Public Address System Projects 

The department's activities include the planning, assessing, estimating, overseeing and the handover of 
new projects that was undertaken for other units within the municipality. 

Priority was given to strategic projects such as the roll out of CCTV and crime surveillance areas across the 
municipal area. Two new control rooms in Pinetown and Beachfront have been commissioned, with a third 
control room at Ntuzuma in the construction phase. 

The CCTV system has been rolled out to new areas such as Outer West, Isipingo, and PINK (Phoenix, Inanda, 
Ntuzuma and KwaMashu) areas. As part of the rollout, CCTV system for Disaster Management strategic 
areas, meaning national keypoints has been implemented eg. King Shaka International Airport and Engen 
Refinery. 

Some of the priority projects have commenced to other departments, such as a CCTV system dedicated to 
integrate and monitor banking halls for Chatsworth, Phoenix and Florence Mkhize Treasury Building. 

Other CCTV projects that have been completed are as follows:- 

• Water Department - which included the integration of the CCTV from all sites. 

• Electricity - Phoenix Depot. 

• Parks Department, integration of 3 stadiums, excluding Moses Mabhida, has been completed. 

• Parks Department - Redhill Cemetery 

• Supply Chain Management, Springfield disposal yard. Old Fort Road stores 

• Pinetown Civic Centre 

Other new CCTV projects will be undertaken after the consultation process has been finalised. Examples 
of these new undertakings are as follows:- 

• Metro Police HQ, 4 pounds and vehicle testing stations 

• Electricity, all HV and LV sub-stations 


184 I P a g e 



• City Fleet, all bus depots and payment Itio^s 

• City Hall revamp 

• Safer Cities and Security Management - New Buildings 

• Integrating all public spaces eg. shopping malls 

Other new PA system projects will be undertaken after the consultation process has been finalised. 
Examples of these new undertakings are as follows:- 
Safer Cities and Security Management Services 

Treasury 
Winder Street 
MDMC 

Parks Department - Pools 

3.12.4.3 Maintenance Services 

Complete maintenance service in terms of preventive, corrective and refurbishment, maintenance as well 
as medium to long term maintenance planning and management are provided by the technical services 
department. Regular maintenance meetings are held to ensure service levels are achieved. 

Technical and Specialised Services provide complete maintenance services for the eThekwini Municipality 
department, which includes the CCTV crime surveillance and traffic monitoring system. This comprises of 
all field sites and all CCTV control rooms within the municipality and stakeholders. 

Measures have been implemented to improve service delivery to combat vandalism and theft. CCTV 
equipment boxes were re-installed at a greater height to prevent unauthorised access. Installation of alarm 
systems on CCTV sites with monitoring and response from Security Management Services for the all sites 
has been implemented. 



CCTV MOBILE CAMERA 
used in areas where there are no static cameras 


185 I P a g e 


188 

3.13 FIRE AND EMERGENCY SERVICES 

The eThekwini Municipality administers a modern and well equipped emergency services unit that provides 
a range of services aimed at reducing the loss of life, injury, economic and social cost arising from fires and 
other hazards. Fire and emergency services are provided across the entire area of jurisdiction, guided by 
the provisions of the Fire Brigade Services Act 99 of 1987. Emergency services delivered fall into two broad 
categories- Fires and Special services. During the period under review, the service responded to 10 483 
fires and 4498 special services. The majority of special service involved extricating and treating victims of 
road traffic accidents. Sadly, during this period fire claimed the lives of 60 people and resulted in an 
estimated direct property loss of close to R372 million. 

The fire risk profile of the eThekwini Municipal Area includes highly developed central business districts, 
two of the country's largest petroleum refineries, the country's largest petrochemical storage facility, the 
continent's busiest port and many informal settlements, all of which present unique and formidable fire 
prevention and fire fighting challenges. Fire fighting remains an undertaking of heavy manual labour 
requiring high levels of physical strength, tenacity and skill from staff engaged in this activity who have 
always to remain compassionate to persons suffering loss in the face of the human misery fire frequently 
gives rise to. 

The prevention of fire and its attendant undesirable consequences remains a priority for the unit. This is 
accomplished by a range of programmes and activities aimed at preserving life and property against fire. 
Building plan proposals are scrutinized to ensure that these meet the minimum fire safety requirements of 
the National Building Regulations and its corresponding codes of good practice. Buildings and other places 
where the possibility for large loss of life from fire exits are regularly inspected and where conditions are 
found that could hinder escape or promote the spread of fire are found, enforcement orders are issued. 
The Fire Safety Branch's favoured method of engagement with its customers remains educating and 
explaining with enforcement being a last resort. The unit's Fire Safety Branch convenes the city's team 
responsible for evaluating submissions made for the erection or operation of Major Flazard Installations 
within the city. 

The business environment in which emergency services are delivered is dynamic with changes in 
technology, legislation and community priorities all necessitating a flexible yet consistent approach to 
meeting the challenges of a modern fire and emergency service. 

The past year has seen the re-opening of the Cato Ridge fire station, which now provides emergency service 
cover to the rapidly growing industrial developments in the area in addition to the Fredville, Camperdown, 
kwa-Ximba, Inchanga, Botha's Flill and Drummond residential areas and also provides emergency services 
to the national N3 route that provides the link between the port of Durban and the Gauteng area where 
much of the country's GDP is produced. 

Progress in securing the transfer of land has been unavoidably slow and the unit has not been able to 
operationalize its planned fire stations in the Verulam and Umkomaas regions. Flowever, it is envisaged 
that these stations will be established by the end of 2016. The delay in acquiring the land for the two 
mentioned stations, although hampering the extension of emergency services to inadequately provided 
areas of the city has allowed the unit to initiate the equally important maintenance of its existing fixed 
assets by upgrading and repairing its existing fire stations. 

It is intended to open a pilot project fire station in the Folweni area which has been shown to be one of the 
areas currently inadequately provided for in terms of emergency services delivery. 

The second construction phase of the units Training Centre at lllovu has been completed and the third 
development phase is planned for the 2014-2015 financial year. The centre will not only provide for the 
acquisition of the essential technical skill-sets required of a modern emergency service, but will be utilized 
for training of other local authorities who do not have access to facilities of this nature in their areas of 
jurisdiction. It is further intended to present commercial training to commerce and industry that supports 
the organisational mission of the unit which is to reduce the incidence and severity of fires and other 
emergencies that adversely impact on the quality of life of the people of eThekwini. 


186 I P a g e 



The eThekwini Fire and Emergency Services urfiPfias one of the most modern emergency service vehicle 
fleets in the country. This is largely due to adherence to an agreed emergency vehicle replacement 
programme that ensures that the unit is supported by a fleet of emergency service vehicles commensurate 
with the risk it is mandated to protect. 

Sixty-three percent of the sixty fire deaths during the year under review occurred in informal dwellings. 
Research has shown that the rate of development and growth in single room fires results in reliance on 
emergency response with the intention of saving life or property in such occupancies largely ineffective. A 
modified approach to sensitizing vulnerable persons and communities to the ravages of fires in these areas 
through fire safety education is the preferred and more effective method of reducing life and property 
losses. This is an area where more work is needed. The unit is currently undergoing a structural review, 
which it is hoped will lead to a formal and well-researched approach to the delivery of community fire safety 
education which will show a reduction in life loss over the next few years. 

Work is being done with the Council for Scientific and Industrial Research [CSIR] to analyse the unit's 
operational data collected over that past five years from which patterns and trends can be extracted that 
will enable the unit to render services in a more efficient and responsive manner and will further enhance 
medium to long-term strategies for the unit. 

Given the previously stated physical demands placed on operational fire fighters in the delivery of 
emergency services the unit's participation in events that promote health and fitness are encouraged. 
Recently the unit entered the national "Toughest Fire fighter Alive" competition and secured the overall 
team winners award out of eleven competing teams, including an overall third place in the individual male 
event and a second place in the overall female event. The unit has an active football team who has recently 
won the inter-departmental competition in eThekwini and placed second nationally in the annual football 
championship of the Southern African Fire and Emergency Services Institute. 

The unit is working to improve its gender profile and is actively working on initiatives to improve access to 
prospective female applicants who see the fire service as a career. 

The unit wishes to place on record its appreciation for the support and encouragement it receives from the 
city's elected representatives who have shown their commitment to the unit in the past year. 



187 I P a g e 


190 

Damage by fire 

per RIOOO of municipal rateable value 


3.00 

2.00 
1.00 
0.00 


03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 


Seriesl Linear (Seriesl) 


Table 3.13.1 Metropolitan Fire Service Data 

Details 

2012/13 

2013/14 

Total fires attended in the year 

9091 

10 483 

Total of other incidents attended in the year 

5328 

4 498 

Fire fighters in post at year end 

530 

524 

Total fire appliances at year end 

78 

81 

Average number of appliances off the road during 
the year 

104 

90 



Figure 7 Typical Rescue Pumper in Fire and Emergency Service livery - as used in the eThekwini Fire and Emergency Service 



Figure 8 Firefighters tackling a fire in an informal settlement 


188 I P a g e 



191 


3.13 DEVELOPMENT PLANNING, ENVIRONMENT AND MANAGEMENT 
INTRODUCTION 

In broad terms the Unit's function is to lead, direct and manage the use of the built and natural environment 
to ensure the sustainable and integrated growth and development of our Municipality. The Municipality is 
committed to a sustainable development path that strives to balance social, ecological and economic 
priorities. To this end, the Unit comprises three core departments that contribute to the municipality's 
sustainability agenda viz: Development Planning, Development Management, and Environmental Planning 
& Climate Protection and supported by an executive and administrative component. 

STRATEGIC SPATIAL PLANNING SYSTEM 


EThekwini's Land Use Management and Spatial Planning system is based on a suite of plans which are cyclic 
integrated and subject to iterative processes and shows the move from Municipal wide strategic level plans 
to detailed local level plans and land-use schemes as depicted in the figure below: 


c 

o 

■(6 

Q. 

O 

05 

CL 

O 

Z 

3 

CL 


Long Term Development 
Framework 


Integrated Development 
Plan 


Spatial Development 
Framework 

Corporate / Multi Sectoral Strategic 
Approach and Intentions eThekwini 
MunicipaFwide 

Spatial Development 

Plan 

Strategic / Multi Sectoral Planning 
Guidance for regional areas on a 1 0-20 
year horizon 

Local Area Plan 

Development Guidance for geographically 
specific districts and precincts S-10 year 
horizon 

Functional Area Plan 

Development Guidance for geographically 
specific districts and precincts at a more 
local scale on a 3-10 year horizon 

Land Use Schemes 

Environmental and Built Form guidance 
for geographically specific areas 1-5 year 
horizon 


o 

o 

XJ 

O 

•n 

Q) 

S’ 

Q) 

(O 

CQ 

»< 

"O 

o 

o' 

•< 


3 

"D. 

CD 

3 

fp 

ZD 

r*» 

o' 

o 

5* 

o 

cn 


Integrated Suite of Plans 


Through innovation and best practice, the Strategic Spatial Planning system is aimed at achieving spatial 
transformation, economic vitality, environmental integrity, social sustainability (resilience) and responsible 
design whilst responding to the needs of citizens and aligning with national, provincial and local policies. 
This responsibility is to a large extent governed by the Municipal Systems Act (MSA) No 32 of 2000, which 
requires the municipality to prepare a Spatial Development Framework (SDF) as an integral component of 
the Integrated Development Plan (IDP) 

The Strategic Spatial Planning Branch is responsible for preparing the suite of plans that directs growth and 
guides short, medium and long term development priorities, infrastructure planning and city budgets. In 
addition, it serves as the basis for managing land use, long term land uses within a sustainability frame. 


189 I P a g e 



192 


PROJECT 

STATUS 

a) Spatial Development Framework annual review 

Adopted by Council 

b) Spatial Development Plans annual review 

Adopted by Council 

c) lllovo Local Area Plan 

Adopted by Council 

d) Rural Development Strategy 

Currently Underway 

e) Southern Public Transport Corridor Densification 
Framework 

Currently Underway 

f) KwaMashu A Regeneration Project 

Currently Underway 

g) Sustainability Indicators for Spatial Planning & Land Use 
Management 

Project Pended 

h) Mpumulanga LAP 

Currently Underway 


Short overviews of the projects are listed below. The full Council approved reports can be downloaded 
from the Municipal Website: 

http://www.durban.gov.za/Resource Centre/reports/Framework Planning/Pages/default.aspx 

i) Spatial Development Framework 

The eThekwini Municipality's SDF serves as a strategic spatial framework that guides the overall spatial 
distribution of desirable land uses within the Municipality in order to give effect to the vision, goals and 
objectives of the municipal IDP. The Municipality's SDF represents an ultimate (+20 years) plan, and is 
revised annually in line with the IDP 5 year cycles. The SDF must therefore inform key strategic development 
decisions and city wide interventions, especially regarding future growth and development of the 
Municipality and these should resonate with the national and provincial spatial development objectives 
and priorities. 


A new and innovative project was recently initiated by the Strategic Spatial Planning Branch aimed at 
mapping the capital expenditure of the Municipality to assist in evaluating whether the expenditure aligned 
with the goals and objectives of the SDF contained in the Integrated Development Plan (IDP). The project 
involved primarily data capture of city budgets (past and future) 

Numerous lessons have been learned. Some of the challenges included limitations with the data capture - 
not all items are spatially referenced, some line items do not have a geographic location, some extend 
beyond the spatial area of impact, filters and approximations were then needed to map all relevant data all 
of which resulted in only 50% of the budget being mapped. The outcomes are therefore not conclusive, but 
provide a broad indication of the degree of alignment. 

Furthermore, it was extremely difficult to analyse a long term plan against a 3 year budget cycle. The 
conclusion drawn from this is that it is important to encourage a longer term budget cycle. 

Despite the limitations, the work yielded some useful preliminary results and should continue to be refined. 
Additional work includes, the capturing of block sums, the capturing of city maintenance projects, mapping 
of the spatial impact of projects, mapping of intended phasing of projects, capturing provincial and national 
projects located within the Municipality, capturing private sector projects, extending the budget cycle to 
10-20 years, amendments to the template use in the budget capturing process to include a standard format 
to be used by all departments that will provide information on, for example, the spatial location of projects, 
the correct information, the nature of project and its impact, standardizing the names of projects etc. 

This project starts to develop a greater understanding of whether the aims of the SDF are being supported 
by the way in which municipal funds are spent and is intended to be undertaken and refined on an on-going 
basis as a means of monitoring alignment with city spatial priorities. 

ii) Spatial Development Plan (SDP) 2013/14 review 


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Spatial Plans are undertaken for each planning^gion - North, South, Outer West and Central Spatial 
Planning Regions. They are reviewed annually in alignment with the IDP annual review process. The most 
recent SDP's were approved by Council in March 2014. 


iii) lllovo Local Area Plan 

The overall objective of this project is to strategically integrate the social and economic base of the 
southern portion of the eThekwini Municipality to achieve compact urban development and discourage 
sprawling investment far outside of the primary /economic hub (Port of Durban Port). In doing so, this 
project will contribute to social cohesion, and offers alternative job opportunities through the 
introduction of a mixed use zone that will unlock lOOha for an Automotive Supply Park development. 
This development will unlock possible +4000 jobs from civil and building construction. Through this 
development the bulk infrastructure and new road connections will make the development viable and 
benefit the local residents through increase accessibility and access to social and economic facilities. 
The Local Area Plan has been completed and adopted by Council but will be subject to review based on 
the outcomes of detailed environmental studies. 

iv) Rural Development Strategy 

The Rural Development Strategy will provide the overall vision for the rural areas within the eThekwini 
Municipal boundaries. The overall vision will then inform the role of the rural areas and give effect to 
appropriate land uses and service levels. The strategy will also provide Land Use Management 
guidelines to inform the preparation of Rural Schemes in accordance with the Planning and 
Development Act (PDA, 2008) and the Spatial Planning and Land Use Management Act, 2013 (SPLUMA). 
Some of the key issues to be addressed by the project include: a more inclusive engagement process 
with the traditional leaders through a Memorandum of Understanding that will be developed as part 
of the project. The strategy will also encompass issues of protocol in engaging with traditional leaders. 
A spatial framework for the rural areas will also be developed. The project also aims at defining rural 
areas, particularly in eThekwini whilst tackling issues of spatial transformation by ensuring that rural 
areas within the municipality are serviced accordingly. The project is currently underway and it is 
anticipated that this project will be completed in the 14/15 financial year. 

v) Southern Public Transport Corridor Densification Framework 

The preparation and adoption of the City Densification Strategy in May 2013 aimed to guide and inform the 
spatial re-structuring of the metropolitan area. The strategy provides guidelines and norms for locating 
various forms of human settlement density from a strategic point of view, as well as suggests an approach 
to practical and realistic implementation interventions and tools, which inform and guide more specific 
density proposals across the city and within relevant Spatial Plans. The preparation of this City Densification 
Strategy signals the serious intent of the eThekwini Municipality to direct appropriate residential density 
and mix of uses to appropriate locations in order to ensure sustainable resource use and the creation of 
sustainable cities and human settlements. 

The City Densification Strategy (2013) suggests that densities of more than 80 housing units per hectare 
should be promoted in nodes linked to the Southern Public Transport Corridor. This initiative sets out to 
establish whether this level of density can be achieved in the Southern Public Transport Corridor, and how 
this can be achieved. The project is currently underway. 

The South Densification Corridor project replicates the approach adopted previously for the Northern 
Public Transport Corridor (adopted in March 2013). The following Stations were identified as the candidate 
stations for the Northern Public Transport and Land Use Projects: Umgeni Road Station; Temple Station; 
Greenwood Park Station; Redhill station; and Avoca Station. 


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Both densification studies are being undertakel=i^thin the parameters set by the City-wide Densification 
Strategy and are in support of more recent National Treasury requirements to support integrated and 
compact city development and spatial transformation. 


vi) Kwa Mashu A Regeneration Project 


The KwaMashu A area is close to major roads, and not far from areas of economic activity such as 
KwaMashu Town Centre, Bridge City, Phoenix Industrial park and the old North Coast Road activity spine. 

The area has economic, residential densification and public realm upgrading potential due to its highly 
strategic location and accessibility to existing and future public transportation network and services. 

The KwaMashu A Regeneration Plan intends to develop a set of interventions that will drive urban 
regeneration, identify sites to accommodate sustainable densified housing and prepare plans for them as 
well as preparing urban realm plans, a framework land use plan to inform a new scheme and possibly other 
interventions. The project is currently underway. 


vii) Sustainability Indicators for Spatial Planning & Land Use Management 


The eThekwini Municipality is proactively engaging sustainable economic growth and climate change 
challenges through strategic initiatives focused on developing enhanced approaches to planning, 
development, servicing and management of the City. 

This project is a useful conceptual starting point to guide the work that needs to be done by the eThekwini 
Municipality in initiating a process to define local level environmental thresholds that can inform the 
development of a decision making framework to be used in assessing the environmental sustainability of 
the City's Spatial Plans. It was finally agreed that the sustainability indicators study must be pended until 
the Safe Operating Study (SOS) and Strategic Environmental Assessment (SEA) studies are completed as 
these studies will inform the sustainability indicators for spatial planning. This project is pending the 
completion of the SOS and SEA. The SOS Study is currently underway and is formulating indicators which 
will form the basis for the planning study. The end result will be a key input into eThekwini Municipality's 
Strategic Environmental Assessment, which in turn will ensure that we produce a COGTA / SPLUMA 
compliant SDF. 


viii) Mpumulanga LAP 


The Mpumalanga LAP comprises of the following areas: Hammersdale, Mpumalanga Township, 
Camperdown Rural, Georgedale, Mophela, Sankontshe and Ntshongweni. Other adjoining areas of 
influence are Cato Ridge, which is one of the city's priority areas for industrial expansion, and Shongweni 
which has been identified for a regional Town Centre Node, all of which are located on the SIP 2 corridor. 
This plan is required to manage and provide strategic guidance on developments, particularly in areas 
currently not covered by the Town Planning Scheme to achieve sustainable development within the 
Mpumalanga Local Area of the Outer West Planning Region. The aim of the Local Area Plan is to provide a 
strategic framework and clear phasing and implementation plan to manage future development. The 
overall objective of this study is to create a framework plan that integrates socio-economic and land use 
management issues in order to respond to a highly dense, previously disadvantaged and poverty stricken 
township in the Outer West Planning region. Among other issues the Local Area Plan is aimed at informing 
a detail land use scheme and detailed urban design to create a pleasant and conducive township 
environment and built form that promotes economic growth and access to social facilities. Importantly, the 
LAP will consider ways of better integrating Mpumulanga with the surrounding areas of Cato Ridge and 
Keystone (both with potential for industrial expansion) and maximizing its strategic location on the SIP2 
corridor and Public Transport Network to facilitate improved access to jobs and basic needs and to limit the 
need for long travelling distances. 

Due to delays in obtaining additional funding and the lengthy procurement process the consultants were 
only appointed on 30 September 2013 for a 12 month contract ending September 2014. Phases 0-3 have 


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been completed and a Draft Land Use FramewOTk (Phase 4) has been prepared. The project will be 
undertaken within the anticipated 12 month timeframe. 

ix) Facilitation 

In addition to the above, previously approved plans prepared by this branch have significantly contributed 
towards the unlocking of development opportunities in alignment with municipal, provincial and national 
objectives. For example, the Spatial Development Framework was a key informant of the Economic 
Department's Industrial Spatial Strategy, the Fluman Settlements Flousing Plan, the service departments 
Infrastructure Plans and the City's Built Environment Performance Plan: the Umlazi Regeneration Study has 
been used as a basis to inform Prasa station upgrades and ensure integrated residential and commercial 
developments around key rail stations in Umlazi and a collaborative approach to development, the Tongaat 
and Inyaninga Functional Area Plans provide a framework for guiding optimal development adjacent to the 
strategic opportunities related to the projected growth of an Aerotropolis region and the recently declared 
Special Economic Zone/Industrial Development Zone; and, the Cato Ridge Local Area plan provides a 
framework for guiding optimal land use and industrial expansion opportunities associated with the National 
SIP 2 corridor. 

LAND USE MANAGEMENT 

COASTAL MANAGEMENT STRATEGY 

STATE OF BIODIVERSITY 

Enforcement and Prosecution Branch 

The enforcement and Prosecution Branch focuses its efforts on the following areas: 

Enforcement of the National Building Regulations and Standards Act, Planning and Development Act. 

Statistics 



2012 / 2013 

2013/2014 

Summons processed 

5323 

4797 

Summons serves 

4237 

3597 

Warrant of arrest authorized 

330 

290 

Warrant of arrest executed 

194 

183 

Percentage of enforcement and prosecution cases dealt with within 30 days 

3929 

100% 

Number of illegal land use and development cases successfully stopped 

6 

56 

Number of land Use cases Prosecuted 

25 

66 

Number of building non-compliance cases successfully stopped 

1529 

1378 

Number of Building cases prosecuted 

2605 

2504 

Total Cases for the year 

4165 

4002 


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196 

Integrates Customer Services Management (iCSM) 

BUILDING REGULATIONS 

During the financial year (2013/14) 14 284 building applications were received of which 6 980 were new 
(first time) applications. The number of applications approved increased by 16.5% compared to the 
previous year. 

In total the Development Applications Branch processed 14 710 applications in the 12 month period 
compared to 15 604 for the previous financial year. Of the 14 710 applications that were processed, 14 435 
were decided upon within statutory timeframes. This means that 98% of all applications processed by the 
Branch were processed within the prescribed timeframes, with 100% being achieved over the last six 
months. This is an improvement on the previous year. 

Programme: Ensuring the long-term sustainability of the natural resource base 
Project: State of Biodiversity Reporting 

The purpose of Durban's State of Biodiversity report is to track the municipality's performance in terms of 
biodiversity and ecosystem services protection and management. This is one of the ways in which we can 
determine if we are making progress in achieving the city's sustainability objectives specifically relating to 
the protection of biodiversity and the concomitant ecosystem services that it provides to all the citizens of 
Durban. Indicators are used to trend spatial and temporal information on biodiversity ensuring that 
appropriate management interventions can be put into place before natural thresholds are exceeded as 
the loss of biodiversity and related ecosystem services put humanity at increasing risk, e.g. from food and 
water insecurity and extreme events. The State of Biodiversity report is one of the Environmental Planning 
and Climate Protection Department's (EPCPD) most important communication tools, summarizing the work 
that the EPCPD, and our sister branches. Natural Resources and the Natural Science Museum do and can 
be used as a tool to inform decision-making around activities that will impact positively or negatively on the 
city's biodiversity. 


In the 2013/2014 financial year the fifth State of Biodiversity report was 
produced and reported on information relevant to the previous financial 
year (2012/2013). In addition to the key indicators that are reported on 
every year, this report focused on wetlands, one of the most important 
ecosystems to humanity both locally and globally. The reason for this was 
to create awareness and improve understanding of the significance of 
wetland ecosystems, specifically in rapidly urbanising areas such as Durban. 
Some of the key observations from the report were as follows: 

Key observations from the State of Biodiversity report (produced December 2013) 

• Wetlands: In Durban, only one-third of the original extent of wetland habitat is remaining and 
remaining wetland areas are under increasing threat. The loss of wetlands poses a severe threat to 
human well-being as wetlands provide a number of direct and indirect services for free. Wetlands act 
as buffer areas from storms and floods, they remove harmful pollutants from streams and rivers, 
thereby providing clean drinking water, they contain fertile soils for crop production (e.g., Madumbis 
and bananas), they provide building materials (e.g., reeds), and play a role in carbon storage by 
trapping greenhouse gases in soils. 

• Alarming decline of waterbirds in Durban: The Durban Natural Science Museum published a special 
edition of their journal, Novitates, compiling a synthesis of the last 13 years of waterbird counts in 
Durban Bay. Grave concern exists around the overall continuing decline of the waterbird numbers in 
the Durban Bay and the implications thereof. 

• The exciting re-discovery of the Endangered Rondo Silky-Bark (Maytenusabbottii) in Durban's Palmiet 
and Empisini Nature Reserves was reported on. 



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• Land acquisition. In 2013/2014, a total arera^^MO hectares of prime conservation land was acquired 
at a total cost of R4, 505,731.87. The majority of the land acquired contained the Critically Endangered 
KZN Sandstone Sourveld grassland, representing a significant conservation success. 

• Emerging weeds in Durban: The report contained a description of a new emerging weed (non- 
indigenous species that could become invasive) in Durban i.e., the Lollipop Climber (Diplocyclos 
paimatus) that residents were warned to keep a look out for. 

• Communities benefittingfrom biodiversity management: Two uplifting stories of how biodiversity and 
ecosystem protection and management can contribute to human well-being through job creation and 
individual empowerment were also included in the report. 

• Climate Protection: Climate change statistics for Durban were included in the report with a short story 
on Durban's Adaptation Plan, which was featured in the international, Pulitzer Prizewinning 
InsideClimate News as being one of the most comprehensive adaptation plans in the world. 

*Details on each indicator and biodiversity-related stories can be found in the full report. All reports 
(including the most recent) are available electronically and can be downloaded by clicking here. 

Project: Durban Metropolitan Open Space System (D'MOSS) and Systematic Conservation Plan (SCP) 

In 2013/2014 a new iteration of the Systematic Conservation Plan (SCP) was produced. The new SCP 
represented an improvement on the previous output. A new integrated land cover/vegetation map was 
produced for the eThekwini Municipal Area, which addressed a technical flaw identified in the previous 
plan. In addition, a fine-scale historic vegetation map, essential for setting biodiversity targets, was 
produced based on published references, expert opinion, historical photography and environmental CIS 
layers. Specialist workshops were conducted for a range of taxonomic groups in order to update the 
biodiversity features used in the plan. The conservation planning software package Zonation was used to 
determine Critical Biodiversity Areas within the eThekwini Municipality. These outputs were used to create 
a new D'MOSS layer, which is pending approval. A draft Biodiversity Sector Plan, a requirement of the 
Memorandum of Agreement with Ezemvelo KZN Wildlife, was also completed. This Biodiversity Sector Plan 
(BSP) has been developed for the eThekwini Municipality as a precursor to a bioregional plan. The purpose 
of a bioregional plan is to provide a map of biodiversity priorities (identified as Critical Biodiversity Areas'* 
and Ecological Support Areas^) with accompanying land use planning and decision making guidelines, to 
inform land use planning, environmental assessment and authorisations as well as natural resource 
management by a range of sectors whose policies and decisions impact on biodiversity. In the province of 
KwaZulu-Natal, a decision was taken by KZN Wildlife that a Biodiversity Sector Plan must be developed as 
a precursor to a Bioregional Plan. The reason behind this was the identified need for KwaZulu-Natal to 
clearly set out the baseline for the conservation priorities in each of the district and metropolitan 
municipalities, before interacting with the sector plans of other spatial planning agencies. Integrated 
Development Plans and Spatial Development Frameworks (SDFs) as required by Section 48 of National 
Environmental Management: Biodiversity Act (2004) and the Bioregional Plan Guidelines (Department of 
Environmental Affairs and Tourism, 2009). 

Project: Large scale programmes for implementation of biodiversity and climate protection, and for green 
job creation 

Sub Project: Working for Ecosystems 

Implementation of the WFE programme is on-going, and good success was achieved on the ground, 
throughout the year. The key objective of the programme is control of invasive alien plants in key catchment 


''critical Biodiversity Areas are those areas of natural or near-natural features, habitats or landscapes that Include terrestrial, aquatic and marine 
areas that are considered critical for (i) meeting national and provincial biodiversity targets and thresholds (II) safeguarding areas required to 
ensure the persistence and functioning of species and ecosystems, including the delivery of ecosystem services; and/or (iii) conserving 
important locations for biodiversity features or rare species. Conservation of these areas is crucial. In that If these areas are not maintained in a 
natural or near-natural state, biodiversity conservation targets cannot be met. 

^Ecological Support Areas, are those area required to support and sustain the ecological functioning of the critical biodiversity areas. 


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areas, through the involvement and employme!rH?9f local community members. 204 ha of initial, 1074 ha 
of follow-up and 493 ha of maintenance level invasive alien plant control was achieved. An average of 161 
people were employed through the year, with 58% male and 32% female employed. 10 fully black-owned 
small businesses were supported and mentored through this period. Staff training amounted to a total of 
1218 training days. Research within Working for Ecosystems is progressing on two fronts, namely 1) value- 
added industries such as the production of biochar, and 2) sustainable learning pathways linked to 
Expanded Public Works Programmes and other job creation opportunities in order to strengthen green jobs 
development. One challenge met during the year was the rampant illegal sand mining at the Mzinyathi 
Waterfall, and due to increasingly dangerous conditions (workers and visitors to the site were threatened, 
and roads became unstable and unusable), the WEE project at that site was shut down. 


WFE Figs, i.) Biochar experiment and ii) workers undertaking lAP control 


Sub Project: Working on Fire 

A specialist implementing agent was appointed to undertake the Working on Fire programme. This work 
includes the control of invasive alien plants on high priority biodiversity sites, either through manual, 
chemical or mechanical means, as well as through the use of fire.The 2013/2014 year was very successful, 
with targets met in all areas. 23 ha of initial, 103 ha of follow-up and 984 ha of maintenance level invasive 
alien plant control was undertaken, as well as 138 ha of fire control. An average of 60 people (64% male 
and 36% female) were being employed full time through the year, with a total of 12838 person days worked. 
Work has been undertaken on 21 sites; and staff were sent on a total of 20 training courses with a total of 
304 person days of training being achieved. A detailed second component of the veld condition assessment 
was undertaken, which included a fixed point photography component, for visual assessment of work over 
time. Detailed mapping of all site activities has been implemented to allow for the development of 
improved burning and lAP management regimes. 




WoF Figs. i.)Controlled burning of grasslands ii.)ETM WoF team 


Sub Project: Community Reforestation Programme 


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199 

The reforestation projects at Buffelsdraai and Inanda Mountain have continued throughout 2013-2014, and 
both projects have been successful in terms of the targets met. These projects focus on reforestation, 
including primarily the planting of trees, but also some forest management practices such as control of 
invasive alien species. At least 81 permanent jobs, 15 temporary jobs, and 50 contractor jobs have been 
created. A combined total of 742 treepreneurs (community members who grow trees) were supported in 
communities surrounding the Inanda and Buffelsdraai sites. TA total of 189 340 trees have been planted 
during the year.Funding secured from the National Green fund (approx. R36 million) has helped to boost 
the work undertaken on site, including, for example, infrastructure upgrades, acquisition of vehicles, as well 
as the appointment of specialists to undertake the necessary educational programmes, advocacy and 
stewardship interventions as well as research. The research partnership was finalised, and research with 
the University of KwaZulu Natal has already made good progress. 



CRP Figs. i.)Tree planting team in action ii.) Treepreneur with one of her tree seedlings 


Sub Project: Invasive Alien Strategy & Implementation 

The Invasive Alien Species Framework Strategy and Action Plan was updated. Several projects within the 
plan were completed, including: updating the Emerging Weeds document; updating the State of Invasive 
Species document; reprinting of Beautiful but Dangerous posters and flash cards; design, printing and 
distribution of Guideline Documents for invasive alien plant control (both General and for Water Flyacinth). 
Furthermore, ongoing testing and upgrading of the new Emerging Weed Spotter Website was done. lAP 
control training was provided for two other municipal departments. Site audits of selected municipal 
landscaped parks and nurseries, as well as relevant feedback from the previous audits was presented to the 
Parks, Leisure and Cemeteries Department. A generic management plan was developed and submitted to 
the same department. 



IAS Fig. Guideline booklets printed 


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200 


Project: Biodiversity Stewardship 

Biodiversity Stewardship is a new, proactive, intervention that the eThekwini Municipality is introducing. It 
involves strong public-private partnerships that result in good biodiversity management practice and in 
tangible benefits for landowners. In 2012/2013, a task team was set up comprising members of all the 
branches of the Environmental Planning and Climate Protection Department with the aim of engaging in 
meaningful discussion on how to take stewardship forward in the city. In 2013/2014 the task team initiated 
two pilot projects. 

The first pilot aims to form a partnership with the amaQadi community for the formal protection and 
management of Inanda Mountain. Activities so far include (1) a number of site meetings with the local 
traditional authority, (2) two completed grasslands assessments, (3) a fire management workshop and (4) 
planning meetings towards the formation of an Inanda Mountain Conservancy, Fire Protection Association 
and Inanda Mountain Environmental Committee. 

The second pilot aims to proclaim private and public landholdings within the Giba Gorge Environmental 
Precinct (GGEP). This formalised protection will assist the GGEP committee and eThekwini Municipality in 
obtaining funding for the project and will ensure the protection of key threatened ecosystems and species. 
Meetings have been held with all relevant landowners and the required proclamation documents are in the 
process of being reviewed by the landowners' legal representatives. 

Project: Giba Gorge Environmental Precinct (GGEP) 

The Giba Gorge Environmental Precinct Special Rating Area had a successful year in 2013/2014. The work 
team has again been increased to 10 individuals, sourced from BBBEE contractors. Significant initial clearing 
and follow up has been completed within the core forest and grasslands of the Gorge and by June 2014 
over half of the block and fire break burns had been completed. A number of landowners have also reported 
increased sightings of grey duiker, bushbuck and caracal. The local scouts association has used the gorge 
for a number of activities and the general recreational usage (mountain bikers, hikers, birders etc.) is on 
the increase. Poaching events have been reduced through the implementation of weekend patrols. 

Project: Biodiversity impact assessment of development applications. 

A total of 2001 applications were received and assessed by the department during the 2013-2014 financial 
year. All categories of applications received during this reporting period met the scorecard timeframes. 
Enquiries: 8 days average 

Buiiding plans: 7 days average 

Planning appiications: 8 days average 

Environmentai Impact Assessments for private deveiopments: 15 days average 

Sand Mining: 11 days average 


Project: Ensure compliance of municipal infrastructure projects with the Environmental Impact 
Assessment (EIA) regulations. 

Screening of municipal projects for EIA requirements has been undertaken as and when required. In total, 
160 projects were screened during this reporting period and 79 EIA reports were quality checked before 
submission for decision making. Two incidents of non-compliance with EIA legislation were reported during 
this reporting period. 


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201 


Project: Establish an effective compliance and enforcement function to protect key biodiversity and 
ecosystem goods and services. 

Sub-Project: Ensure complaints are handled within specified time frames. 

All complaints received during the reporting period were processed within an average turnaround time of 
4.5 days. 

Sub-Project: Take required enforcement action. 

Enforcement action was taken on a number of cases, 4 cases are still at various stages of administrative 
action while criminal action has commenced for 3 cases. The Biodiversity Enforcement Officers were also 
co-opted by the national Department of Environmental Affairs to partake on a successful sand mining blitz 
operation that resulted in the closure of 2 illegal sand mining operations, forfeiture of a number of machines 
used in the mining and 2 arrests. Two more officials from the Biodiversity Impact Assessment branch 
successfully completed the Environmental Management Inspectorate course in order to strengthen the role 
of biodiversity enforcement. 

Project: Influence City Planning to address environmental sustainability 
Sub-project: Safe Operating Space Study 

The 'Safe Operating Space' study was originally designed as a process to define local level environmental 
thresholds that could inform the development of a decision making framework to be used in assessing the 
environmental sustainability of the city's spatial plans. Through the course of consultation with a number 
of municipal departments in December 2013, it became clear that the project also needed to consider 
economic and social elements. In response to this feedback, the project methodology was reframed and 
the Environmental Planning and Climate Protection Department has been working with a new CSIR team 
for the last 3 months to develop these ideas further. The new methodology is centred around the concept 
of designing, demonstrating and then implementing an integrated indicator system for the eThekwini 
Municipal Area that will help to show progress towards a viable and improved future, including the ability 
to explore the likely outcomes of various development options. The system is based on the concept of a 
'safe space' that is defined by three largely independent axes (Risk, Human Wellbeing and Inclusive Wealth), 
for which lower and upper thresholds can be established. This work will also become a critical input into 
the development of the city's Resilience Strategy as part of the '100 Resilient Cities Programme'. A 
workshop was held in August 2014 to gather from municipal departments a range of possible scenarios that 
capture the major changes and challenges that the city is likely to experience over the next few years. This 
input, along with general feedback on the integrated model, will be used to inform the project development 
process going forward. The project has also been presented to the DCM Forum for input. 

Sub-project: Facilitate the coordination of environmental sectors in the Municipality 

A key role of the Environmental Planning and Climate Protection Department has been in coordinating the 
Municipality's participation in the '100 Resilient Cities Programme'. 

At the end of 2013, Durban was selected as one of the first 33 cities to be included in the Rockefeller 
Foundation's International 100 Resilient Cities Programme (100 RC). The Rockefeller Foundation launched 
the 100 RC Programme to assist cities around the world in building urban resilience in the face of a future 
where stresses (e.g. inequality, unemployment and degradation of the natural environment) and shocks 
(e.g. floods and other disasters) are likely to become more prevalent. With most of the world's population 
now living in cities, building urban resilience is important in helping cities (people, communities, 
infrastructure and ecosystems) to prepare for these challenges so that they can recover effectively to a 
state better prepared to cope with both extreme and chronic events. A key output of the lOORC 
Programme is to develop a 'Resilience Strategy' for Durban. 


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202 

The eThekwini Municipality's Environmental Planning and Climate Protection Department (EPCPD) is 
coordinating the Municipality's involvement in the 100 RC programme, and is being supported by a cross- 
departmental municipal team, as well as a number of external stakeholder groupings. 

Some work has already been undertaken to unpack the concept of resilience within the City's context and 
work has been done to identify some of the key issues for Durban that may need to be considered as part 
of the city's resilience strategy. One of the core components of the lOORC programme is to ensure that 
Durban's Resilience strategy is informed by the perspectives and insights provided by a range of different 
stakeholders. As part of the stakeholder consultation process, the EPCPD commissioned a 'Community 
perspectives snapshot' to gather perspectives from a range of stakeholders (which included members of 
the public and technical experts in Durban) to inform a locally relevant understanding of resilience. This 
was supported by further discussions with the Municipal Technical Team and an Advisory Panel to test and 
expand on some of the early ideas and key themes emerging for Durban's resilience strategy. The outcomes 
from the stakeholder engagement process were also shared with the City leadership for their strategic 
direction and input on the resilience strategy development process. A key idea emerging from this work is 
that understanding urban resilience in Durban will involve weaving a "tapestry" of different perspectives 
and voices to ultimately inform a locally relevant resilience strategy. 

The Resilience Agenda Setting Workshop scheduled for 4**^ September 2014 is a critical milestone for the 
100 RC Programme in Durban and is also the first time that a diverse range of both international and local 
stakeholders will be meeting around the resilience strategy development process. A way forward for 100 
RC Programme in Durban will be to build a common understanding of Durban's resilience story, reach 
agreement on the themes for the resilience strategy, and craft a way forward for the strategy development 
process for Durban. 

Project: Investigate and test environmental sustainability approaches, policies and tools 
Sub-project: The Umhiangane Catchment Climate Adaptation Programme 

The purpose of the uMhIangane Climate Adaptation Project is to explore how a 'business unusual' approach 
that encourages cross-sectoral planning and decision-making, broad stakeholder engagement and a focus 
on the city's natural resources as the base for adaptation, can enhance efforts to manage geographic units 
such as catchments, as key climate change adaptation tools within eThekwini Municipality. Key activities 
that were undertaken during 2013/2014 were as follows: 

• Coordination and regular meetings of the cross-sectoral team involved in the programme 

• Ongoing climate change partnership with Bremen, Germany. This partnership has continued to 
facilitate technical exchange visits focused on the establishment of an advanced water quality 
monitoring station downstream of the Northern Wastewater Treatment works. A number of pilot 
projects were also implemented and were focused on community climate change engagement 
through writing, the establishment of a 'Kinderwilderness' to promote environmental education 
near Inanda Seminary and piloting of an algae filter for water purification. 

Funding from the German Federal Ministry (BMZ) has continued to support wetland rehabilitation, invasive 
alien plant clearing and the establishment of a water quality monitoring station in the uMhIangane 
catchment. The programme was audited for the first time in January 2014 and the feedback has been used 
to enhance the processes and management associated with this international funding. 


Project: Build capacity and support for environmental sustainability issues through communication and 
education 


Sub-project: 'The Campaign' (TOPIC) 

In light of the global environmental, social and economic crisis that currently exists, there is a need for a 
new wave of innovative thinking that will drive the environmental sustainability agenda at a local level. 


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203 


With this in mind, the Environmental Planning and Climate Protection Department developed the TOPIC 
(Together Provoking Innovative Conversations) approach with the purpose of engaging and starting 
'conversations of possibility' focused on integrating environmental sustainability considerations into 
municipal planning. The TOPIC conversations will serve as a basis to engage people in a number of 
different ways and spaces, depending on the issue at hand. Currently, the greatest opportunity to take the 
TOPIC approach forward lies in the context of the '100 Resilient Cities Programme'. 

Sub-project: Broad communication, education and pubiic awareness 

A study to understand the value and the role of community environmental champions in achieving 
community level environmental sustainability was conducted in 2012/2013 and the findings shared with 
affected branches within the Environmental Planning and Climate Protection Department and input was 
obtained. In 2013/2014, the Community Champions Framework document was drafted highlighting key 
work areas which could be used as an avenue to identify and capacitate community champions. The 
Community Champions work has evolved to have a strong 'Stewardship' focus, and this is yielding 
interesting results. As an example, the department has now focused strongly on building working 
relationships with traditional authority leaders as potentially key champions in rural areas. The relationship 
between the department and these leaders through this process has allowed a number of workshops to be 
facilitated, and this has led to significant insights being gained into perceptions around the natural 
environment, medicinal use of invasive alient plants etc. These insights are critical in working to build 
partnerships for ongoing land management and stewardship programmes in rural areas in the Municipality. 

A quarterly departmental newsletter continues to be produced. This focuses on key projects in the 
Environmental Planning and Climate Protection Department, and shares information on useful tools and 
resources for those who are interested and active in the environmental arena. 

Programme: Develop and implement a Municipal Climate Protection Programme 
Project: Implementation of the Durban Adaptation Charter 

The Durban Adaptation Charters (DAC) aims to encourage local governments around the world to prioritise 
adaptation as a key strategy in their response to the challenge of climate change. Hosting the DAC 
secretariat raises eThekwini Municipality's profile globally and confirms our city as a leading figure in the 
global climate change challenge. 

During 2013/14, the DAC was honoured within a number of international meetings with a platform to raise 
awareness of the need for local level adaptation and with the hosting of a number of special signing 
ceremonies. These ceremonies have advanced the number of signatory cities, now in excess of one 
thousand, of the DAC. This was especially the case at ICLEI's Local Climate Solutions for Africa 2013 
Congress, in Dar es Salaam, where over 120 members of the Association of Local Authorities in Tanzania 
(ALAT) committed to implementing the DAC principles in a signing ceremony not unlike the outpouring that 
was experienced during the original signing of the DAC in December 2011. It is no coincidence that both of 
these major signing events, of over 100 commitments, occurred within cities of the Global South, and 
particularly in Africa. We have been reminded, again, with the release of the IPCC's 5**^ Assessment Report, 
of the risk that Africans face in terms of development challenges and the impacts of climate change. 

We are reminded, too, of the importance of partnerships between and among signatory cities and 
implementing agents to affect meaningful climate change action. In this respect, the DAC Secretariat has 
been fortunate to receive strong support from ICLEI - Local Governments for Sustainability, who have 
hosted a number of these signing ceremonies at international meetings arranged by them, the maintenance 
of the DAC website and their continued commitment to partner with Durban for the long term 
implementation of the DAC. Individuals from a number of internationally-based organisations have 
contributed substantially to progress made with the DAC during 2013/14. This includes USAID for their 
generous funding and the ICMA for their assistance with the hosting of the Implementation Guidance 
Workshop and CityLinks exchange visits.There has been substantial expert input from a growing number of 
expert individuals from other organisations within the DAC Steering Committee. 


201 I P a g e 



204 

Project: Durban Climate Change Strategy 

The Durban Climate Change Strategy (DCCS) seeks to combine the currently disparate response measures 
to climate change within the Municipality into a cohesive strategy that promotes cooperation and reduces 
duplicated effort. The strategy will provide an overarching vision that the city and its residents can engage 
with. Currently the strategy is in its final development stage with a final draft being prepared for city 
leadership approval. Through a participatory process, that included communication through various media 

in both English and IsiZulu, an advisory group was formed that helped determine the key themes for the 
strategy. These themes are Water, Sea Level Rise, Health, Biodiversity, Food Security, Transport, Energy 
and Waste Management & Pollution. The Economy and Education and Awareness are considered as cross- 
cutting themes. Currently, an implementation plan is being developed for the DCCS. 

Project: Municipal Adaptation Plans 

Prior to 2012/2013, a set of 47 Municipal Adaptation Plans (MAPs) were drafted for the Water, Health, 
Disaster Management and Environmental sectors. Following a Benefit/Cost analysis that considered the 
benefit to people in terms of the number of people positively impacted, rather than economic 
considerations, these MAPs were distilled into 16 Municipal Adaptation Clusters (MACs). A database was 
established to follow the development of the MACs on an annual basis. The databasing process allows for 
the tracking of progress, assessment of challenges and constraints, noting of unanticipated positive 
outcomes, and synergies with other sectors. 

During the course of 2012/2013 additional projects were identified to be added to the existing pool of MAC 
projects. The most notable of these is the implementation of the Municipal Adaptation Plan Technical Task 
Team (MAPTTT) jointly managed by the EPCPD and the Disaster Management Sector. Because of the strong 
alignment and synergies between climate change adaptation and disaster risk reduction, for both rapid and 
slow onset disasters, it was concluded that the coordination of the MAPTTT would best reside within the 
ambit of the Disaster Management Advisory Forum. In this regard, significant progress has been made 
towards determining how the future environment under climate change will affect organisations and 
communities within eThekwini Municipality. During 2013/14, the MAPTTT was presented to the DMAF, and 
this project is now ongoing. During the 2014/15 financial year, a review of the MAPs will be conducted, and 
they will be integrated into the implementation plan for the DCCS. 

Project: IPCC (Intergovernmental Panel on Climate Change) involvement 

Dr. Debra Roberts has continued to be active in her role as a lead author of the Urban Adaptation chapter 
in the Fifth Assessment Report by the IPCC. The final Working Group II: Impacts, Adaptation and 
Vulnerability report was released in March 2014. She was selected as one of South Africa's Climate Change 
champions by the Mail and Guardian newspaper and was awarded the African Climate Award for her 
contribution to climate change research in Africa. 

Project: UKZN Research Partnership 

The eThekwini Municipality has committed R500, 000.00 per annum to the University of KwaZulu-Natal 
(UKZN) to serve as core funding for research and human capital development in the area of environmental 
management and global environmental change. The programme has now entered its third year of funding. 
The projects agreed upon by the research team are intended to draw a wide range of disciplines together 
to address sustainable management within the KwaZulu-Natal Sandstone Sourveld habitat type, within the 
broad context of global change. 

The programme is jointly managed by the KZN SS Steering Committee, comprised of members from the 
EPCPD and the UKZN. The programme is already making positive knowledge contributions to aid the 
management of the KZN SS, as well as in human capital development. A new phase of the joint research 
programme is being developed to focus on the large scale reforestation programme at Buffelsdraai. 


202 I P a g e 


205 

3.15 Parks, Recreation and Culture 
Introduction 

The Unit is made up of three Departments, namely: Parks, Leisure and Cemeteries, Libraries and Heritage 
and Sports Recreation Development. 

In this regard the Unit report will reflect both statistical information and Highlights of each of the three 
Departments. 

Parks, Leisure & Cemeteries 

The Department conducts its operations across the entire 98 kilometres of the eThekwini Coastline and 
comprises some 19 Divisions within its jurisdiction. These being the 10 Parks District, the Cemeteries, Pools, 
Natural Resources, Special Services, Botanic Gardens, Mechanical Services Division, Stadia & Leisure 
Facilitation as well as the Production & Display Section with 9 Nurseries. The newest Division - Agriculture 
has been re-united with Parks, Leisure & Cemeteries Department in the financial year under review. The 
Agricultural Division incorporates the provision of sustainable farming, including Fish Farming, for the 
Communities. 



Figure 1 Durban's expansive Beachfront under the curatorship of the PLC dept. 



Figure 2 -North Pier extreme low tide 


Statistics for the Department 


COMMUNITY & EMERGENCY STATISTICS 2013/2014 


PARKS LEISURE & CEMETERIES 


FACILITIES 


2012/2013 


2013/2014 


203 I P a g e 




2ee 


NUMBER OF SWIMMING POOLS 


NUMBER OF SOCCER FIELDS 


NUMBER OF CRICKET WICKETS 


NUMBER OF BEACHES 


NUMBER OF HOCKEY FIELDS 


NUMBER OF RUGBY FIELDS 


NUMBER OF BOWLING GREENS 


NUMBER OF NETBALL COURTS 


NUMBER OF VOLLEY BALL COURTS/COMBI-COURTS 


NUMBER OF STADIA 


NUMBER OF COMMUNITY HALLS 


NUMBER OF GOLF COURSES 


NUMBER OF CEMETERIES 


NUMBER OF CREMATORIA 


NUMBER OF DEVELOPED HORTICULTURAL PARKS 


AREA OF DEVELOPED HORTICULTURAL PARKS (ha) 


NUMBER OF NURSERIES (ha) 


NUMBER OF DEVELOPED PLAYGROUND SITES 


TOTAL NUMBER OF RESCUES - BEACHES 


NUMBER OF BURIALS (excluding paupers & indigent) 


NUMBER OF PAUPER BURIALS 


NUMBER OF INDIGENT BURIALS 


NUMBER OF CREMATIONS 


NUMBER OF PUBLIC CONVENIENCES 


NUMBER OF NATURAL RESOURCE AREAS MAINTAINED 


52 


336 


66 


5 


9 


5 


53 


75 


6 


163 


2 


57 


2 


141 


5968.8 


9 


617 


1522 


3668 


205 


1072 


52 


75 


52 


336 


66 


40 


5 


9 


5 


53 


75 


6 


163 


2 


57 


2 


144 


5968.8 


9 


618 


1522 


6767 


453 


213 


1999 


52 


75 


The focus of the Department this financial year has been a three-pronged approach to ensuring the 
maintenance of Service Standards; Fostering the Council adopted Greening Strategy for the City and 
promoting compliance with National Imperatives of fostering Food Security & Sustainable Agricultural 
Development. 

In this regard, the Department has strived to win the 2 prestigious National Awards for the City again, that 
of the Gold in the City Arbor Award Competition as well as the Service Excellence Awards hosted annually 
throughout the Country. EThekwini won the Gold Medal in 2012/2013, and the Silver for its Service Delivery 
ethics in the Premier Excellence awards. 


204 (Page 


The Department succeeded in this achieveme?i^|^nd once again, the City, through its Parks, Leisure & 
Cemeteries Department again won the 2013/2014 City Arbor Award, two years in a row. 


As a result, eThekwini Municipality was again declared South Africa's Greenest Municipality by the 
Adjudication Team this year for the manner in which it has managed the Greening of its Urban Landscape 
through tree planting programs and the care and maintenance of the Green Assets in the City as a whole. 



3 National Arbor Week 


The Greening function in our Country has traditionally focused mainly on Urban Areas with limited attention 
paid to Peri-urban and Township areas. eThekwini Parks, Leisure & Cemeteries Department was noted for 
its extended Greening efforts in Rural Areas particularly along main access roads, all of which contributes 
towards offsetting the City's carbon footprint. 



Figure 4 - Mayor planting trees with the PLC Dept as part of Arbor week 

Towards its goal of planting trees for our Future Citizens to grow old under, the Department planted 17 516 
trees throughout the City, whilst including an educational function to the receiving Community at the same 
time. Below, is the detail of where these trees have been planted over the year in question. The R300 000 
prize received from winning the City Arbor Awards allows the Department to continue with its successful 
Tree planting Strategy to green our City for sustainable development. 


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208 


Trees planted in 2013/2014 


Indigenous Exotics Total 


D1 

12S0 


SO 

1300 

D2 

8S0 


119 

969 

D3 

419 


0 

419 

D4 

3024 


213 

3237 

DS 

S96 


10 

606 

D6 

969 


0 

969 

D7 

SIO 


0 

SIO 

D8 

608 


0 

608 

D9 

4892 


0 

4892 

DIO 

313 


40 

343 

HG 

0 


0 

0 

TOTAL 

13431 


432 

17S16 


A further example of the department striving to support the National Imperative is the very successful 
Buffelsdraai project, mentioned below. 


Buffelsdraai Landfill Site Community 
Reforestation Project 



A flagship carbon sequestration and green jobs 
proJectfortheCitythat has beenchamfjioned 
bythe EnvironmentalPlanning and Climate 
Protection DepartmerTt. 

S rvce rvcept-»r. p-o.-ect has creates a tota of 374.obs 
<24 10 pa"t-t nrNe. 340 te'rpo'a-yl fo* Te-rbe's of 

the su— •ot.rvd ng conr.»run‘t«s. 

"T'e p'o.ect has h gh ghtec the way tHat ratu*a ecosystems 
si,pponana protect hu-mar commun-tes. an^ the way that 
human comvmur tes can suppot. •esto'e anp protect oca 
ecosystems. Ths mutua y suppot ^e "eat-onsh p s one of 
the “easons i^vy th>e concept of Community Ecosystem 
Sases Aoaptat on <CE5A| was proposes fo* Du *^an. CE&A s 
seer as an mponart anp recessa*“j' ejctensor of the 
ejtstng 'Ecosystem Eases Adaptat on' corvcept. 


Figures. Carbon Sequestration Project in conjunction with EPCPD 


Social cohesive integration of Services, both within its own Divisions, the Unit's Department, as well as with 
its Sister City Units, as well as our Sister Cities Partnerships, was encouraged and forged. 

Internal Departmental co-operation can be evidenced in that the Parks, Leisure & Cemeteries Department 
is engaged on a weekly basis through the City Clean -Up Campaigns with all the City's Units as well as its 
own Stream Cleaning campaigns with the involvement of the local Ward Councillors. 


206 I P a g e 


THE Clean My City campaign, championed by etneKwini Mayor James Nxumalo has received a lot of media 
attention in recent weeks as city officials partner with relative stakeholders in an attempt to clean up the 
dirt and grime that tarnishes Durban's tourism profile. Recently, the mayor paid a visit to Albert Park, better 
known as Whoonga Park because of the large numbers of vagrants and drug addicts who have made the 
park their home, and promised to clean it up and rehabilitate its destitute residents. 



Figure 6-WhoongaPark Night 



NightFigure 6b- Whoonga Park by Day 


207 I P a g e 


Residents attack Whoonga Park druggies June 10 2014 at 05:2! 



Figure 7 - Mayor on walkabout in Albert Park maintained by the PLC Dept, and in conjunction with the 
Clean my City Campaign 

After a visit by eThekwini's Executive Committee to Albert Park yesterday, a task team is to be set up to 
deal with Durban's whoonga addicts. Parks, leisure & cemeteries assists on a weekly basis with the clean- 
up of this Park to rehabilitate it back to an acceptable, recreational facility to be proud of. 

Mayor launches campaign to clean up city 

Durban's Mayor James Nxumalo launched a massive clean-up and maintenance campaign on Thursday, 2 
May. The aim of the campaign is to encourage cleanliness within the city centre and other municipal areas. 
The Clean My City Programme will target a number of hotspots that are prone to high levels of filth and 
dilapidation, including the Warwick Junction, Albert Park, Mahatma Gandhi/Point area and Victoria 
Embankment. 


Albert Park Master Plan 



Figure 8 - Albert Park Rejuvenation master Plan 


The Department, with the City, is looking at developing a Master Plan for the Albert Park precinct securing 
funds to upgrade and provide a more holistic approach to this area. 

Other areas that will receive special attention include greater Cato Manor, as well as uMlazi and Isipingo, 
Clermont and Pinetown, Tongaat and Phoenix as well as Inanda, Ntuzuma and KwaMashu (PINK) areas, 
greater Chatsworth, and areas of the greater South. 

Other efforts included the Councillors' and Local Residents in the drive to eradicate one of a growing 
problems being highlighted in the City - that of illegal dumping and waste being left around. 


208 I P a g e 


The Department too hosted a Student from Bfernen as part of its Sister City Twinning Program, for 6 
months at the LIV Village on the North Coast. 



Londtwe Satimburwa (Technician. Projects) with Dr Hans-Peter Weigel ( Senior expert rrom SES Dermany) 










13 


To fiirthor enhance our urtderelanding of the impacts on water quality in the catchment, 
pressure sensors will be installed nt strategic points in the iiMhIangane River and its 
tributaries Dr Hans-Peter Weigel played a significant role in guiding the team to choose 
relevant sites for the pressure sensors. The pressure sensors should give us information 
about the fluctuations ir> the river depth and how these relate to the water quality recorded by 
Uie monitoring station 


cr 

ince early 201 1 Bremen and Durban have been actively engaged in establishing a municipal 
4 development partnership for climate change mitigation and adaptation, and natural resource 

protection based around the uMhIangane Catohmsnl Managsmsnt Project This involves 
activities in the fields of integrated water quality management, sustainable urban development, 
waste water management and sanitation, green space development, conservation of biological 
diversity, environmental education and participation. 


Water quality will be used as a performance indicator in the success of the uMhIangane 
Project Funding for a river water quality monitoring station has been allocated by the Free 
Hanseatic city of Bremen for a real lime river water quality monitoring station As the city 
of Bremen has several similar stations we have modelled our station on their system The 
Senior expert. Or Hans-Peter Weigel, funded by Iho German Senior Expert Services spent 3 
week assisting us with optimising our system Our monitoring station was installed in 
February 2014 at the Northern Wastewater Treatment Works and live water analyses can be 
viewed on the CSIR website. Dr Hans-Peter provided valuable input and guidance that 
highlighted the power and value of the having such a monitoring station. 


During his visit he provided comment on various other projects including the Algae 
Harvesting project also within the uMhIangane catchment. This pilot project funded by BMZ 
is designed to take advantage of the abundant sunlight and high nutrient levels at the weir on 
the river to ctilUire algae on culture trays. The nearby community can use the algae for the 
food garden nearby The community food garden is part of a project by the Economic 
Development Unit of the Municipality 


Furthermore, there is an opportunity for a possible cooperative link between Windhoek, 
Bremen and eThekwini with respect to the remediation of water quality arising from run-off in 
certain contaminated areas. Partnerships of this nature are valuable and enhance the 
technical capacity of the organisation. 


Figure 9- Sister City partnership with Bremen 

A successful Outreach programme was undertaken in the Ntshongweni Area at the InganeYami Children's 
Home this year as part of the Mandela Day initiative wherein the Department identifies a special project, 
which supports its initiative to develop and support initiatives which sustain and build our communities. 
This is the third of such Mandela day events where the Staff gave of their own time, embracing the culture 
of giving back to the Community. 



Figure 10 Mandela day Outreach Programme - InganeYami 

On an International level, the Parks, Leisure & Cemeteries Department sent a Delegation to the Nantes 
Flower show in France, held in May 2014, to showcase the City's Horticulture excellence as well as to learn 
and share technical advances in the field of Horticulture and Arboriculture. 


209 I P a g e 




Figure 11. Nantes New exciting ideas for Play equipment, surfaces and designs 



Figure 12 Nantes - Outdoor Play/Sport Equipment example of blending in with the Environment 

The Parks, Leisure & Cemeteries Department too made preparations for the presenting of a display at the 
World Orchid Show held in Johannesburg in September this year where it won gold for the best orchid of 
its kind on show as well as a further three technically related awards. This shows that the Department has 
a sound knowledge base in the Horticultural field which is accepted and acclaimed at both a national and 
International level. Whilst this is in the new financial year, it should be realized, that it took one (1) year of 
work to prepare and ensure that the relevant plants were in flower for this specific period! 

The Department is initiating its Educational Program in line with the City's initiative to regain Blue Flag 
Status for four (4) of its bathing beaches. The first application has been submitted and preparations are 
under way to ensure that the City can comply with the high standards required. 


210 I P a g e 





Figure 13 BOOSTS to tourism and management of beach water quality are some of the perks linked to the 
international Blue Flag status given to beaches that meet the standards. 

Blue flags on the horizon 

The spin-off from the Blue Flag Status is that it can promote tourism in our city. Five years after dropping 
out, Durban has selected one of its popular beaches to chart its way back into the international Blue Flag 
programme this summer. 

uShaka Beach is one of four eThekwini beaches set to rejoin the programme. The others are eMdIoti tidal, 
eMdIoti main, and uMgababa. Mayor James Nxumalo announced on Thursday that the beaches would 
participate in the pilot phase required by the programme for the 2013/14 season. 

This would be followed next year by Westbrook and uMhIanga main beach, with other eThekwini beaches 
following. 

The Mayor, James Nxumalo said there had been calls by the public, hospitality and business entities and 
the provincial and national government for the eThekwini Municipality to rejoin the programme. 

"To achieve full Blue Flag status the beaches must demonstrate that the pilot beaches have complied with 
ail 33 criteria," the mayor said. 

"Our biggest chaiienge is undoubtediy the state of our water guaiity at our beaches. A criticai review of the 
city's water guaiity resuits has narrowed the potentiai piiot biuefiag beaches to six candidates." 

A highlight for the year, which needs to be recorded, is that fact that the Department, through its 
involvement in the Festive Season Management Committee (FESMAC) reported that although most of the 
beaches were filled to capacity, everything went smoothly with very few incidents. 

From an Aquatic perspective, the Department through its dedicated lifeguards and law enforcement 
officers on the beaches, the respective holiday periods were well managed. 



211 I P a g e 




214 


Figure 14 Durban is among the country's top domestic tourist destinations and last year attracted more 
than 3. 2-million visitors 

Durban enjoyed a bumper festive season with thousands of visitors and locals visiting the city, to usher in 
the New Year. Since Christmas week, more than 3.235 998 people visited the various beaches, 636 rescues 
were carried out and 9 280 people had to be given first aid for different medical reasons. 

Approximately 86 403 armbands were issued to children visiting the beachfront. All separated children 
were reunited with their guardians. Parents are urged to ensure that children are always under adult 
supervision when swimming at the beaches. 

The December/January Management Plan ensured a multidiscipline, integrated and co-ordinated approach 
to managing the holiday season and in December /January 2014, 3,235 998 people visited our Beaches with, 
unfortunately, 3 drowning occurring. 



Figure ISMore than 3.2million holidaymakers flocked to Durban beaches In over the Christmas holidays. 



Figure 16 Lifeguards on Jetski rescue craft 


Budget Highlights 2013/14 

Capital Projects which have been finalized in the year under review include: 

The Construction of a Change room and the provision of Ablution facilities in the Umzinyathi Sports field in 
Ward 3. The cost of this project was R1.565m. The Department is further sourcing funding to complete 
additional parking and pavilion seating in the new financial year. 

Nazareth Sportsfield, in Ward 16, was completed with Palisade fencing, turf and irrigation being 
undertaken to the value of Rl.l million. 

The Laguna Pool project too was completed within the financial year in question at a cost of R1.6 million. 

The Kwamashu G Hall and offices in Ward46, too were completed and will now be positioned as Cultural 
precinct for Libraries & heritage in the coming year. 


212 I P a g e 


Another Capital project was 
of various Bird cages. 


the improvements?n!a§e to the Mitchell Park Zoo. This was mainly an upgrade 


On average some 58 000 Visitors enjoyed the attractions of this facility. The Zoo generated an income of 
under a half million. These Visitors encompass all ages and is a good example of how the Department is 
trying to ensure that all its facilities reach out to include something for all the citizens of the City. It is an 
extremely popular site for birthday and celebrations. It should be noted that Mitchell Park is the 
country's second oldest zoo after the Pretoria National Zoo. 



Figure 17 Admiral, the 100 year old Tortoise at the Zoo 

Three of the existing Swimming Pools are being refurbished to being heated pools which will extend the 
swimming season by far. The pools being upgraded include Bayview Pool, KwaMashu G Pool, as well as 
lighting being extended at the Rochdale Pool. 



Figure 18 MLB International Coaches at Floy Park 

The Floy Park extensions were completed towards the end of October 2013. In November 2013, a Coaching 
Team from the American Baseball Union came out to Durban to hold training session with Coaches 
throughout the Country. Their comments were that the facilities were up to international standards and 
they would be prepared to come again. 


213 I P a g e 


Outdoor Gyms in the Parks is becoming a definiyi^. The Department received a donation of outdoor gym 
equipment for the Rydalvale Park in Phoenix, which was then opened officially by the Honorable Senzo 
Mchunu on 28 September 2013. 



Dear Friends and Fellow South Africans 

You and your families are warmly invited to participate in our 
"Many Cultures One Nation Fesfival" in Phoenix on Saturday 
28 September 2013 as reflected overleaf. This is part of our 
September Heritage Month programme which includes 
celebrating the life of Nelson Mandela. 


The histoiy of our organisation is underpinned by the central pillar of 
unity: uniting all the people of our country. In 1955 we produced the 
Freedom Charter which boldly proclaimed that: "South Africa belongs 
to all who live in it." 


Uniting our people is a continuous task requiring the determined and 
energetic effort of all South Africans. We have much to be proud of. 
We have achieved against tremendous odds. Many challenges still 
remain. Our unity in diversity is a strength that must be used to take 
us into the future. 

The programme will include a colourful multi-cultural parade through 
Phoenix culminating in an exciting programme of music and dance at 
the Rydalvale Sports Ground. We have national, provincial and local 
artists lined up. We have mobilised youth groups, senior citizens, 
religious organisations, sports organisations and NGOs to participate 
ana display their organisation's work and support for our Many 
Cultures One Nation theme. 


The eyes of the nation will be on Phoenix via newspaper and 
television coverage, 


CLAIM YOUR SPACE 
In this historic 


MANY CULTURES ONE NATION FESTIVAL 


Follow us on twitter: @ANCKZN 


Facebook: ANC KWAZULUNATAL 


Ksued Sy: ANCKZN 031 372 2000 


www.anckzn.orft 


Residents are using the gym every day, and the department is looking to roll this out in many of the main 
parks throughout the City. Grasshopper Park in Mariannridge too has such equipment in their newly 
established Park, which was undertaken in collaboration with COGTA. 



Figure 20 Outdoor Gym Bulwer Park 


Local Councillor' s too support this initiative stating : 

"This is a really effective way of spending money to the benefit of the majority of citizens who can't afford 
a gym membership. It's becoming more and more important to promote a healthy lifestyle as we know 
regular exercise reduces the incidence of disease, which decreases the burden on the state to provide 
care," 


214 I P a g e 






217 


Social Responsibility & Community Upliftment Programmes 

The Parks, Leisure & Cemeteries Department has initiated and sustained some 53 Community Gardens 
throughout the City. Providing seedlings, equipment and educating the Community on how to plant in a 
sustainable way to feed their families throughout the City. 

There is a garden outside the City hall - showcasing and displaying the concept of Community gardens for 
all. 

The newly acquired Agricultural Division too has some 86 such projects up and running, which now need to 
be incorporated within the Department and their good work extended. As was stated in the preamble, the 
Agricultural Division includes too a Fisheries - or Agronomist function. This is a new and exciting direction 
which the Parks, Leisure & Cemeteries Department will be pursuing. 



Figure 18 Ppermaculture and Community Garden Projects 

Social Responsibility & Community Upliftment Programmes 

By partnering with LIV Village in the Food Garden network project, the Gardens become a place not just of 
beauty, but a hub for social and community regeneration and for teaching how horticultural and botanic 
knowledge can be used to foster self -sufficiency and eco-literacy and lessen the societal impact of poverty 
and inequality. 

The Mandela Day launch and the on-going collaboration between the Durban Botanic Gardens and LIV 
Village, serves to highlight the Garden's commitment to the following four principles: social cohesion, social 
responsibility, eco-literacy and food sovereignty. 

The Garden will continue to work closely with the LIV Village in ensuring that their gardens flourish and 
provide a steady supply of vegetables and herbs to the mothers and orphans living there. It should be noted 
that on the first follow-up visit to the village, mothers reported that the vegetables and herbs were growing 
well overall. Only one mother reported that her garden was not doing well. It is to be expected that with 
the expertise of the Permaculture Unit, success will prevail in all the gardens. 

In support of its Greening Strategy, the Parks, Leisure & Cemeteries Department, have initiated and 
undertaken ten (10) Stream Cleaning Projects in participation with local Ward Councillors. Some 120 jobs 
have been created through the engagement of local Co-Operatives to man these projects on a sustainable 
basis. 

Other efforts included the Councillors' and Local Residents in the drive to eradicate one of a growing 
problems being highlighted in the City - that of illegal dumping and waste being left around. 


215 I P a g e 


3.16 ETHEKWINI HEALTH UNIT SERVICE DELIV^iV^LATFORM 

South Africa faces a quadruple burden of diseases relating to: 

• The high rate of infectious diseases (HIV, Tuberculosis (TB), respiratory infections, diarrhoeal 
diseases) 

• The high maternal and child mortality rates 

• The increasing prevalence of non- communicable diseases (hypertension, diabetes mellitus, 
cerebrovascular diseases, cancer) 

• The high rate of injuries due to accidents and trauma 


The above factors contribute to the ten leading causes of "life years" lost in the eThekwini Municipality. 

In response to this burden, the government in its strategic plan of 2009-2014 focussed on four outcomes: 

• Increase in life expectancy 

• Reductions in maternal and child mortality rates 

• Combat HIV and AIDs and decrease the burden of morbidity and mortality from TB 

• Strengthen the effectiveness of the health system 


For the reporting period, the health unit of the municipality, set out to implement (within the eThekwini 
Municipal Area) strategies aligned to these four outcomes, working towards the realisation of the South 
African government aspirations. Strategies were implemented in order to mitigate against the prevailing 
health conditions and to keep its population healthy. 

The current curative model of health care is not cost-effective and not sustainable and therefore a longer 
term, economically sustainable community - based model of health care is required. A model that places 
greater emphasis on recognizing the social determinants of ill -health and one that allows for critical 
prevention strategies to improve the overall health of citizens. 

This approach is supported by the National Department of Health (NDoH) and as such a policy document 
entitled re-engineering of primary health care was developed to guide the process. 

The health unit's strategies over the next 2 years will focus on the promotion of healthy living and the 
prevention of ill health in the following areas: 

• Environmental health services to ensure that environmental health risks are minimized. It is a well 
known fact that community risk conditions such as the lack of clean water and sanitation, and 
compromised hygiene practices are more significant than individual risk factors in the spread of 
diseases. One such example is that of diarrhoeal diseases. Hence, the need to place greater emphasis 
on conditions in which people live, work, play and grow old. 

• Implementing services and programmes in line with the national strategy on PHC Re-engineering. 
Special emphasis will be given to school health services, early childhood development (ECD) and 
community outreach primary health care services. 

The purpose of the eThekwini municipal health unit is thus to provide an integrated health service 
encompassing the principles of the primary health care approach and inclusive of clinical, social and 
environmental health services (municipal health services). This is done in an effort to ensure that the 
eThekwini community enjoys an environment which is conducive to health and a good quality of life to 
ensure increased life expectancy. 


216 I P a g e 



Health services in the municipal health unit ar^«>mprised of personal and non personal health care. Non 
personal health care is defined by the National Health Act 61 of 2003 as Municipal Health Services (MHS) 
and pertains to environmental factors external to a person, which may impact negatively on the health and 
the well being of the population. As outlined by the act, MHS is a function of the municipalities. 

The provision of personal health is a function of the national and provincial government. The provision of 
personal health by municipalities is explained in the National Health Act, chapter 5 (District Health System), 
section 32 which outlines how Primary Health Care can be provided by municipalities through a service 
level agreement signed by MEC and the municipality. 

In this context, personal, primary health care in the eThekwini Municipality is provided by both the 
provincial and local spheres of government as follows: 

The service delivery platform within the municipality is therefore outlined as follows: 


Sub- 

Districts/ 

District 


Province 


Municipality 


State Aided 
/ Private, 
Not for 
profit 


Mobiles Satellite 
Teams Clinics 


Clinics 


Contract 

GP's 


Community 
IMCI Points 


Community District 
Health Hospital 

Centre 


NB: Regional and Tertiary Hospitals have not been included in the above table as they do not fall within the 
definition of the District Health Systems. 

PERSONAL PRIMARY HEALTH CARE: 


Annual Total Headcount FY 08/09 to FY 13/14 


N 

U 

M 

B 

E 

R 


3.500.000 

3.000. 000 

2.500.000 

2 . 000 . 000 

1.500.000 

1,000,000 

500,000 

0 


Seriesl 


FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 

. 2,037,554 2,128,731 2,342,999 2,649,653 2,873,115 3,095,581 


217 I P a g e 




























The number of visits to municipal primary heal1ffi4M'e facilities has increased to just over three million with 
the challenge being overcrowding and long waiting times due to the shortage of nursing staff which has 
basically remained static over the past few years. The municipality has embarked on a programme to 
upgrade existing facilities so as to eliminate the chances of infections to both staff and patients and 
minimise congestion in health care facilities. 


Communicable Diseases (Infectious Disease - HIV, TB. Respiratory and Diarrhoeal Diseases) 


HIV Testing FY 08/09 - FY 13/14 

500,000 

N 400,000 

!! 300,000 
M ' 

B 200,000 

E 

R 100,000 

0 

FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 TARGET 



■ HIV Tested 

■ HIV Positive 


FY 

08/09 

09/10 

10/11 

11/12 

12/13 

13/14 

HIV+VE 

37% 

39% 

31% 

22% 

17% 

15% 


The incidence of HIV within the metro is approximately 1.1% with an estimated 40 000 new infections 
annually. The results of the annual antenatal HIV seroprevalence survey revealed that HIV prevalence in 
pregnant women has stabilised at a high rate of approximately 38%. The number of clients tested for HIV 
in municipal clinics has increased over the past few years with about 400 000 HIV tests conducted in 
municipal clinics during the reporting period. The positivity rate in the table above shows that in the earlier 
years HIV tests were mainly conducted in persons with overt signs of the disease. Taking into consideration 
that there is a long period of living with the disease without any signs of illness, the municipal clinics 
embarked on a process of actively seeking out HIV positive patients as outlined in the National 
Government's HIV and AIDS and TB strategic plan 2012- 2016. The output of pro-active testing can be seen 
by the increasing numbers of patients who are initiated (graph below) on ARVs, with 33 720 patients started 
on treatment in the 2013/2014 financial year. The challenge that needs to be urgently addressed by both 
the health system and patients is that of the steadily increasing numbers of defaulters once patients begin 
to feel well. 


218 I P a g e 


221 


Number of persons initiated on ARVs 2010/11 - 2013/14 



Tuberculosis (TB) 

TB is the leading opportunistic infection in HIV positive patients with about two thirds of HIV positive 
persons co-infected with HIV and TB. The incidence of TB remains high in eThekwini, with 1126 / 100 000 
persons with the disease in 2012 and almost double the national average of 687 / 100 000 persons with TB 
disease. 

The focus on TB management has been to reduce the infectious pool by ensuring a cure of persons with TB 
disease. The table below shows that there is steady progress towards the attainment of the national target 
of 85% cure rate and less than 5 % defaulter rate: 


KEY PERFORMANCE INDICATOR 

PERIOD 

ACTUAL 

SMEAR CONVERSION NEW SMEAR 

POSITIVE 

Q4 2010 - Q3 2011 

65.8% 

Q4 2011 - Q3 2012 

75.5% 

Q4 2012 - Q3 2013 

79.3% 

Q4 2013 - 01 2014 

81.1% 

CURE RATE NEW SMEAR POSITIVE 
(National Target 85%) 

01 - Q4 2010 

43.8% 

01 - Q4 2011 

65.2% 

01 - Q4 2012 

75.6% 

01 - 02 2013 

78. 4% 

DEFAULTER RATE NEW SMEAR 

POSITIVE 

(National Target < 5%) 

01 - 04 2010 

10.9% 

01 - 04 2011 

11.4% 

01 - 04 2012 

9.2% 

01 - 02 2013 

7.5% 


219 I P a g e 



Non-Communicable Diseases (Hypertension, wroetes. Cerebrovascular Diseases) 

Research was commissioned by the KwaZulu-Natal Department of Health to profile causes of morbidity in 
patients admitted to public hospitals in 2010 across the province. The study found that cancers, 
hypertension and diabetes were the most common non-communicable diseases; with cervical and breast 
cancer being the most common cancer found in the sample. Of the 7000 patient files that were examined 
by researchers, one third of the research participants were from the EMA. The study also highlighted that 
cancers, cerebrovascular accidents, congestive cardiac failure and renal diseases were responsible for 20% 
of deaths while communicable diseases were responsible for 58% of deaths. These findings were consistent 
with the reports of the office of Statistics SA. 

Non-communicable diseases of which cancer constitutes an important component, is recognised as an 
increasing and worrisome cause of mortality in South Africa and indeed eThekwini. Largely the strategies 
to reduce the epidemic are preventative in nature (for example: the HPV vaccination in young girls) and 
comprise mainly of healthy lifestyle behaviours which include regular exercise, healthy diet and reduced 
psychological and biological stress. The unit will thus focus the forthcoming years on strengthening the 
preventative and health promotion arm of its work to minimise risk factors, thereby contributing towards 
reducing the burden of non-communicable diseases. 

Maternal and Child Health: 


Municipal Clinic Antenatal 1st visit before 20 weeks: FY 08/09 to FY 13/14 



FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 TARGET 


Figure: Antenatal Care first visit to health facilities for the current pregnancy 


HIV positive pregnant women eligible for ARV treatment and provided with ARVs. 


Financial Year 

08/09 

09/10 

10/11 

11/12 

12/13 

13/14 

TARGET 

Antenatal client initiated on AZT 

13% 

57% 

89% 

90% 

9%. 

1% 

< 1% 

Antenatal client initiated on 
HAART expressed as percentage of 
the eligible clients 

0 

0 

81% 

72% 

86% 

98.8 

95% 


220 I P a g e 


HIV and its related opportunistic infections stillTOTTain one of the major contributors to maternal and child 
mortality. Government policy is thus to ensure that all HIV positive pregnant women are provided with 
triple ARV drug therapy (HAART) to mitigate against preventable death of the mother and reduce infection 
rates in children, during childbirth and during breastfeeding period. The table above shows the gradual 
improvement from providing one drug (AZT) to ensuring that pregnant HIV positive women receive the 
requisite effective treatment of HAART, with only those with contra-indications to HAART provided with 
monotherapy of AZT. The provision of HAART to pregnant women has yielded positive results with HIV 
positivity rate in children tested for HIV around six (6) weeks of age reported to be less than 2% in the 
eThekwini Municipal area. 

AVAILABILITY OF MEDICINES AND SUPPLIES 


A baseline assessment in 2011/2012 scored this sub-domain the lowest across all municipal facilities. As a 
strategy, existing resources were rationalised and reassigned, ensuring that each clinic is visited by a 
pharmacist at least once a month to support clinic staff in the correct management of pharmaceutical 
supplies. 

The outcome of this changed approach impacted positively on the availability of medicines and supplies 
and scored the highest out of the six priority areas in the recent assessment. The challenge still remains in 
the area of patient knowledge on the correct utilisation of medication together with the expected side 
effects. 

In the past, patients have been turned away from clinics when a certain quota had been reached. This 
practice is unacceptable and the health unit has reassured patients that they will not be turned away. To 
reduce waiting times and improve congestion at clinics, the health unit will be implementing a system of 
managing stable patients on chronic medication outside of the clinic facility, in venues that are closer to 
the patients' homes. This means that chronic patients will only be required to visit clinics for consultations 
once or twice a year for a comprehensive review and at any other time should they feel the need to. 

INFRASTRUCTURE UPGRADE 


A report on access to health care by the Department of Public Service and Administration highlights the 
areas that health services are most likely to experience demand pressures. These are: 


• Umlazi 

• Southern parts of Chatsworth 

• Kwandengezi 

• Mpumalanga 

• Kwadabeka 

• Westville 

• Inanda 

• Phoenix 


Whilst the unit recognises the need to improve access by opening new clinics in these under serviced areas, 
the finite building project funding available has meant that the focus remains on improving conditions of 
the existing clinics which have ageing and inappropriate infrastructure as well as to deal with compliance 
to standards in relation to infection prevention and control. 

The clinic upgrade programme is outlined as follows: 

• 11 clinics have been completed since FY 2009/2010, the target being 40 

• 5 clinics are currently under construction for upgrade 

• 4 clinics are planned for 2015/16 

• 6 clinics are planned for 2016/17 

• 4 clinics are planned for 2017/18 


221 I P a g e 



224 

In areas identified as underserved, the provincial government together with the municipality are in the 
process of procuring mobile vehicles and park homes as temporary structures to improve access to health 
services. 

Ongoing Professional Development 

In an effort to sustain continued professional development and acknowledge highly commendable 
performance, the clinical component of the health unit held its first professional clinical symposium in 
August 2013. 



ENVIRONMENTAL HEALTH SERVICES (EHSl 

Environmental Health Services (EHS) is the arm of the Health service whose focus is primarily on preventive 
health and to a limited degree on promotive health. 

Environmental health involves anticipation, identification, evaluation, monitoring, promotion, and 
prevention or control of all chemical, biological and aesthetic factors which affect the development, health 
or well-being and survival of a person or community. 

The National Health Act, 2003 (Act 61 of 2003) requires each metro/district municipality to ensure that 
appropriate Municipal Health Services are 'effectively and equitably provided'. 

This function is executed in terms of a constitutional directive to give effect to the Bill of Rights contained 
in Chapter 2 of the Constitution, with specific relevance to section 24: Everyone has the right to an 
environment that is not harmful to their health or well-being; and to have the environment protected for 
the benefit of present and future generations, through reasonable legislative and other measures" 

1. WATER QUALITY MANAGEMENT 

Environmental Health is responsible for monitoring water quality and availability. This function is a 
responsibility which is shared between a number of municipal departments as well as provincial and 
national agencies. In this regard, EH has embarked on the following activities: 


222 I P a g e 



Table 1: Water Samples Analysed 


225 


WATER SAMPLES ANALYSED 

% SATISFACTORY 

% UNSATISFACTORY 

2083 

74% SATISFACTORY 

26% UNSATISFACTORY 


2. FOOD CONTROL 

Food control or food safety is a collection of activities aimed at reducing the risk of food borne illness 
and ensuring that the quality of food offered for sale to consumers is of an acceptable quality. Food 
Safety as a program is hierarchical in nature and ideally covers all sectors of the food production chain 
and this approach is often referred to as from "Farm to Fork". 

In certain parts of the EMA there has been a proliferation of food premises owned and operated by 
foreign nationals. Many of these operations commence without obtaining business licences, plans 
approvals or Certificates of Acceptability. Most of these operations are non-compliant with food 
safety legislation and the products which they sell to consumers pose a risk to consumers. In order to 
address this challenge there has been a major focus within the unit to re-introduce a culture of 
enforcement to ensure compliance. There have been 172 Food safety related prosecutions 
implemented during the reporting year. 

The eThekwini Municipality markets itself as a premier city for events and consequently much focus 
is placed on monitoring "special events" to ensure that food safety related incidents do not cause 
reputational damage to the image that the city. 

3. CONTROL OF THE BUILT ENVIRONMENT 


Environmental Flealth plays an important role in ensuring that the built environment is conducive to health 
and that development happens in a sustainable manner. This aim is achieved through input into various 
planning and approval processes which include, plan submission, township developments. Environmental 
Impact Assessments,) MFII (Major Flazardous Installations) town planning applications, land-use consents, 
business license applications, permits for informal (food) traders. 


TABLE 2: Built Environment Applications processed 


PROCESS 

APPLICATIONS RECEIVED 

SPECIAL CONSENT APPLICATION'S 

118 

BUILDING PLAN'S 

1120 

ElA's 

243 

MHI's 

16 

SCHEDULE TRADE APPLICATIONS (NEW) 

141 

BUSINESS LICENCE APPLICATION'S 

1608 


223 I P a g e 



4. ENVIRONMENTAL POLLUTION CONTROL 


226 


The abovementioned functional activity covers three (3) media being air, noise and land (soil) pollution and 
the control thereof. Information below deals specifically with Air Quality Management. 

1. Air Quality Management (AQM) 

The primary focus of this program is the protection of the air resource so as to ensure pollutants do reach 
levels whether they may impact on human health. It is also important to preserve the resource for future 
generations. 

The City has made significant investments in AQM (Human & Capital) over time. During the period under 
review the following activities are of note 

• Expansion of the monitoring network by an additional 4 stations being, New Germany, Cato Ridge, 
Hambanathi and Amanzimtoti with an estimated cost of RSmillion.The expansion of the network has 
been necessary as the existing network was concentrated in the South Durban Basin with little real time 
monitoring occurring in the rest of the metropolitan area. 

• Review of the city's air quality management plan (AQMP). Associated cost +/- R1.2million. This is a very 
significant project as the AQMP becomes the city's strategic direction for the next 5 year period. The 
review process entails a number of elements, including stakeholder engagement to gauge community's 
perceptions and needs around the air quality management function. 

• Refurbishment of the existing air quality monitoring network by replacing 6 analysers at a cost of 
Rl.Zmillion. 


The Maps below illustrate the unit's active and passive air quality monitoring networks 

Passive monitoring network 



Data< required OC% 


16-30 ug/m 




Stallori Name 


Cowies Hill 

omits 

Hollesley Road 

isipingo 

Paimfield 

Pinetown Civic 

Rtverstde 

South Bluff 

Southerrr Works 

Wentworth 


Alverstone 


Brighton Beach 

Chatsworth 

City Hall 

Cato Manor 


King Edward 


Montclair 


Number 


Station 


Active monitoring network 


224 I P a g e 




CONTINUOUS 
MONrrORING STATIONS 





The networks depicted above monitor various pollutants defined in the National Air Quality Management 
Act as "Priority Pollutants". The results obtained from the monitoring stations are compared to nationally 
determined air quality standards to determine compliance or non-compliance with these standards. 


Discrete Monitoring 

In response to several complaints regarding dust emissions from an industrial operation process, a site visit 
was undertaken by the health unit in August 2013 to assess the extent of the problem. It was then decided 
that a dust fallout sampling survey be conducted. The study report indicates that the dust fallout 
concentrations were significant when compared to the non-residential South African Standard. 


5. DISPOSAL OF THE DEAD 


The National Health Act, 2003, regulates funeral undertakers in the management of human remains, 
according to government notice No.R363 of the 22"'‘ May 2013. 

Environmental Health Practitioners inspected 158 premises during the reporting period in order to ensure 
compliance with R363. 

6. COMPLAINTS MANAGEMENT 


Environmental Health received approximately 2630 complaints from the public in this reporting period. 
The complaints received cover a range of issues relating to the commercial, industrial and residential sector. 
The majority of complaints received and dealt with were concerns around vectors of disease (31%), 
Unhealthy Conditions (15%), Illegal Dumping (11%), Water Seepage (8%) Air Pollution (10%), Noise 
Pollution (7%), Food Establishments (5%), Overgrown Vacant Land (4%), Animal Keeping (3%). 


225 I P a g e 


GRAPH: Percentages of types of complaints r ^:^ed 


COMPLAINT CATEGORIES 


CLINIC 



SKILLS DEVELOPMENT 


The following internal training on key areas of need has been conducted for the eThekwini Health 
Practitioners of the Health Unit: 


CATEGORY OF TRAINING 

NO. OF EH. STAFF ATTENDED 

Law Enforcement 

36 

Introduction To Globally Harmonised System 

12 

Environmental Management Inspectorate 

10 

Understanding ISO 14001 

10 

Building Plans Scrutiny 

34 

Total 

102 


132 Student Nurses from Addington, RK Khan, Prince Mshiyeni hospitals undertook their 1 day practical 
training between 1/07/2013 and 01/06/2014. 

103 EHP Students from Mangosuthu University of Technology, Nelson Mandela University of Technology, 
the Durban University of Technology and University of Swaziland conducted their Work Integrated Learning 
at the Health Unit within the reporting period. 


226 I P a g e 


Health unit officials celebrating World Envirot^i^Stal Health Day 



Key challenges facing the health unit are as follows: 

A significant amount of work still needs to be done to ensure that all the clinics align to the ideal clinic 
framework of the National Department of Health. 

An issue of concern is the low levels of professional nursing staff in clinic facilities compounded by the fact 
that professional nursing skills are highly marketable creating competition in recruitment of this cadre of 
staff. 

To implement a model of health service delivery that places greater emphasis on recognizing the social 
determinants of ill-health and one that allows for critical prevention strategies to improve the overall health 
of citizens. One that influences personal responsibility for self- care and decreased dependence on the 
health system for curative care. 

In terms of the core functions in environmental health, the section has not performed to the required 
standard for the year under review. The work undertaken by the section has mostly been reactive and 
largely in response to the "Clean My City Campaign". The reasons for non performance are attributed 
mainly to a structure that does not lend itself to a centralised professional-specific form for strategic 
direction as well as a profession that is in dire need of refocusing on community needs, together with 
committed management leading the profession and process. The unit continues to advocate on a regular 
basis for the approval of the new structure which will provide centralised strategic professional direction 
for environmental health. 


While the health unit recognises that there are small pockets of excellence this needs to grow and replicate. 
In line with this, the health unit has recruited 35 additional environmental health practitioners and is 
currently in the process of recruiting 70 more environmental health practitioners. 


227 I P a g e 



230 


CHAPTER 4 - ORGANISATIONAL DEVELOPMENT PERFORMANCE 
4.1 INTRODUCTION 

The Corporate & Human Resources Cluster of the eThekwini Municipality consists of the following Units: 

Human Resources, Organisational Development & Change Management, Occupational Health & Safety and 
Skills Development. 

The Human Resources Unit is responsible for recruitment, selection, labour relations management, pay and 
leave administration, staff administration, grading and remuneration, sick leave management, employee 
wellness, rewards and recognition systems, performance management systems, talent management and 
succession planning, scarce skills retention initiatives, policy development & administration and 
organisational diagnostics. 

The Corporate & Human Resources Cluster's functions and responsibilities address many of the IDP 
requirements to ensure effective service delivery and community development. These include raising the 
skills levels and development of employees; improving productivity, efficiency and effectiveness of the 
Municipality; and creating a positive organisational climate throughout the Municipality. 

The Human Resources projects within the IDP for the 2013/2014 financial year include the following: 

Human Resources Information System: 

To date, HR has implemented the modules which cover areas of the Establishment /Organogram, Payroll, 
Health & Safety, Occupational Health, Industrial Relations, Discipline & Grievances, Performance 
Management, Skills, Leave, Employee Self Service, Employment Equity and e-Recruitment. Manager and 
Employee Self Service has further been made available to those employees that are on Outlook. A suite of 
reports are also available to Line Management of which the current WSP report was produced from the 
system. The latest addition has been the Time Management module for Executive employees who now 
have the ability to apply for and authorize leave online, together with the e-mail functionality of approval 
notifications. This module is now being rolled out to various Departments with great success. 

The systems infrastructure was upgraded to the P-Series which results in a more stable, reliable and faster 
system that will be better suited to handle the large staff composition. With the rapid developments taking 
place at HR, we are sure to be experiencing a more efficient and effective system at our fingertips. 

E-Recruitment: 


Siyalalela (Listening Campaign): 

EThekwini Municipality has implemented a range of initiatives and interventions to address the three red 
flag areas identified during the Internal Perception Survey; this included the Siyalalela (Listening Campaign). 
This campaign provides a communication platform for employees and aims to assist in addressing the 
leadership, communications, culture and values issues that were raised in the employee perception survey. 
In keeping with eThekwini Municipality's commitment to address concerns raised by staff, listening sessions 
have been scheduled and held across the Council. This promoted the visibility and access of leadership, and 
allowing the channels of communication to be open between staff and the leadership. Siyalalela is working 
well in the Clusters and Units which have implemented the Listening Campaign as a tool to facilitate such 
two-way communication. 


228 I P a g e 



Performance Management: 


231 


This project was implemented to comply with the requirements of the Municipal Systems Act, (Act no. 32 
of 2000 as amended) in regard to the implementation of a Performance Management System for all 
employees. To date, Performance Management has been rolled-out down to TASK Grade 5; the cumulative 
total number of staff who have attended training workshops from the project's inception is approximately 
13940, with 758 employees all of TASK (5 to 18) trained in the last 12 months. Moreover, eThekwini 
Municipality is being used by other municipalities as a reference point, and has conducted Workshops on 
how to cascade the PM System to employee levels below the executive level, proving itself as a leading 
benchmark for Local Government institutions. In this regard eThekwini Municipality has worked closely 
with SALGA (KZN). In the last year, eThekwini Municipality carried out a benchmarking exercise to establish 
how a team-based PM System can be implemented, in order to accommodate certain sections of 
employees who carry out work as teams/gangs. This is now being implemented. Employees in Task Grades 
5&6 have been included on the system from 1 July 2014. 

Sick Leave Management: 

Sick leave management workshops were held in March & May 2014 with role-players from Human 
Resources (HR), Occupational Health Services (OHS) and Line Management. The objective of these 
workshops was to confirm roles, responsibilities and processes to ensure the successful maintenance and 
sustainability of the sick leave management strategy. The workshops also probed the underlying causes of 
challenges around sick leave management, explored whether or not the SLM strategy was effective or 
whether it needed to be revised and a clear set of solutions with time-frames and responsibilities were 
devised. A multi-pronged and integrated strategy incorporating all elements agreed is in the process of 
being implemented to augment this strategy even further. The in-house sick absenteeism management 
system (SAMS) continues to be effective in the provision of reports on trend analysis and calculation of the 
sick absenteeism rates for Departments, Units, Clusters and the Organisation as a whole. 

Talent Management: 

Steps are being taken to include Talent Management in the business cycle as a business imperative. The 
alignment of all HR processes to include Talent Management is also being undertaken. The effectiveness of 
the TMC's for Clusters & Units will be monitored on an ongoing basis to ensure maximum value. The rollout 
of Phase 2 of the Coaching & Mentoring programme to middle management is being planned. The creation 
of development plans for Human Resources, following the competency assessment project is being done in 
collaboration with Skills Development and Policy & Development Units. Ongoing quarterly Leadership 
Breakfast sessions are held in response to the Internal Perception Surveys & Talent Management outputs 
in collaboration with MILE & the Policy & Development Units. The implementation of "Recognition of Prior 
Learning" as a pilot project for Human Resources Practitioners is being planned, in collaboration with Skills 
Development. 

HR Graduate Training Programme: 

This programme complements our Employment Equity Plan and Talent Management Strategy which 
enhances initiatives aimed to diversify our workplace. One of the challenges is that HR Graduates get 'head 
hunted' by other organisations due to the extensive training they receive as part of this programme at 
eThekwini Municipality. Budgetary constraints also hinder the Council on taking more graduate trainees to 
compensate for this. Other options to ensure the retention of these candidates in the Council are also being 
considered. 

4.2 EMPLOYEES 

The Municipality has embarked on an ongoing extensive campaign to fill its funded critical & vacant posts. 
Every effort is being made to ensure that all funded critical & vacant posts are being filled to optimize 
effective service delivery at all levels. Good progress has been made as is evident in the statistics shown in 


229 I P a g e 



this report. It should be noted however thatmMew of the normal process of natural attrition (labour 
turnover) there will at all times be a certain number of vacancies in the organisation which is unavoidable. 


Table 4.2.1 Employees as at 30th June 2014 (Funded Permanent Posts) 


2013/2014 

Description 

Funded 

Posts 

Employees 

Funded 

Vacancies 

Vacancies 

No. 

No. 

No. 

% 

Water (Water & Sanitation) 

3531 

3040 

491 

13.91% 

Waste Water (Sanitation) 





Electricity 

2766 

2251 

515 

18.62% 

Waste Management (Cleansing & Solid 
Waste) 

2163 

2038 

125 

5.78% 

Housing 

344 

276 

68 

19.77% 

Waste Water (Stormwater Drainage) 
(Engineers Stormwater) 

1572 

1319 

253 

16.10% 

Roads (Engineers Roads) 

244 

208 

36 

14.75% 

Transport (Transport Authority) 

186 

137 

49 

26.34% 

Planning (Planning & Development) 

126 

115 

11 

8.73% 

Local Economic Development (Economic 
Development & Investment Promotion) 

46 

39 

7 

15.22% 

Community & Social Services (Parks, 
Leisure & Cemeteries) 

3592 

3355 

237 

6.60% 

Environmental Protection 

36 

30 

6 

16.67% 

Health 

1410 

1181 

229 

16.24% 

Security and Safety 

3588 

3196 

392 

10.92% 

Sport and Recreation (Sports & 
Development) 

19 

19 

0 

0 

Corporate Policy Offices and Other 
(Corporate & Human Resources, Governance 
& Office of the City Manager) 

5380 

4420 

960 

17.84% 

Totals 

25003 

21624 

3379 

13.51% 


230 I P a g e 




233 


Table 4.2.2 Vacancies as at 30 June 2014. (Funded Permanent Posts) 

Designations 

*Total 

*Vacancies 

*Vacancies 


Approved 

(Total time that 

(as a 


Posts 

vacancies exist 

proportion of 



using fulltime 

total posts in 



equivalents) 

each category) 


No. 

No. 

% 

Municipal Manager 

1 

0 

0 

CFO 

1 

0 

0 

Other 557 Managers (excluding Finance 
Posts) 

6 

2 

33.33% 

Other 557 Managers (Finance posts) 

0 

0 

0 

Police officers 

847 

45 

5.31% 

Firefighters 

523 

102 

19.50% 

5enior management: TK 16-18 (excluding 
Finance Posts) 

345 

58 

16.81% 

5enior management: TK 16-18 (Finance 
posts) 

33 

7 

21.21% 

Highly skilled supervision: TK 11-13 
(excluding Finance posts) 

3259 

566 

17.37% 

Highly skilled supervision: TK 11-13 (Finance 
posts) 

290 

43 

14.83% 

Total 

5305 

823 

15.51% 

Note: * Posts which are established and funded in the approved budget or adjustments budget 

(where changes in employee provision have been made). 




Table 4.2.3 Turn-over Rate 


Details 

Total 

Appointments 
as of 

beginning of 
Financial Year 

Total 

number of 
employees 
who 

occupied 
posts at the 
beginning of 
the year 

Terminations during 
the Financial Year 

Turn-over Rate* 

No. 

No. 

No. 

2008/2009 

2053 

15743 

466 

2.9% 

2009/2010 

2287 

16585 

471 

2.8% 

2010/2011 

2643 

23494 

632 

2.6% 

2011/2012 

1895 

22452 

815 

3.6% 

2012/2103 

2024 

23164 

820 

3.5% 

2013/2014 

2432 

23209 

810 

3.4% 

* Divide the number of employees who have left the organisation within a year, 
by total number of employees who occupied posts at the beginning of the year 



231 I P a g e 





4.3 MANAGING THE MUNICIPAL WORKFcSfll^ 

The Municipal Systems Act of 2000, Section 67 requires municipalities to develop and adopt appropriate 
systems and procedures to ensure fair, efficient, effective, and transparent personnel administration in 
accordance with the Employment Equity Act of 1998. 

Range of policies and management practices 

The Municipality operates with an array of policies which is made available to staff during induction & via 
the intranet. The eThekwini Municipality has made much progress in the development and implementation 
of the required workforce policies and procedures. It is constantly reviewing these to ensure their 
continued applicability and relevancy and developing new policies and procedures where required. 


Table 4.3. HR Policies and Plans 





Name of Policy 

Completed 

% 

Reviewed 

% 

Date adopted by Council or 
comment on failure to adopt 

1 

Affirmative Action 

100% 

100% 

15 August 1994, 12 August 2004 
(as amended) 

2 

Attraction and Retention 

100% 

100% 

lO-Mar-06 

3 

Code of Conduct for employees 

100% 

100% 

19-Sep-Ol 

4 

Delegations, Authorisation & 

Responsibility 

90.00% 

100% 

Being facilitated by Legal 

5 

Disciplinary Code and Procedures 

100% 

100% 

21-Apr-lO 

6 

Essential Services 

100% 

100% 

30 June 1997, 17 Nov 2008 (as 
amended) 

7 

Employee Assistance / Wellness / 
Substance Abuse 

100% 

100% 

29 April 2003, 8 June 2008 (as 
amended) 

8 

Employment Equity 

100% 

100% 

l-Jan-09 

9 

Exit Management 

100% 

100% 

5-Jul-05 

10 

Grievance Procedures 

100% 

100% 

ll-Jul-03 

11 

HIV/Aids 

100% 

100% 

14-Nov-Ol 

12 

Human Resource and Development 

100% 

100% 

4-May-07 

13 

Information Technology 

100% 

100% 

24-Aug-07 

14 

Job Evaluation 

100% 

100% 

l-Sep-02 


232 I P a g e 




255 


Table 4.3. HR Policies and Plans 



Name of Policy 

Completed 

% 

Reviewed 

% 

Date adopted by Council or 
comment on failure to adopt 

15 

Leave 

100% 

100% 

l-Jan-04 

16 

Occupational Health and Safety 

100% 

100% 

Comply with Act 

17 

Official transport to attend Funerals 

100% 

100% 

18/04/2011 

18 

Official Working Hours and Overtime 

100% 

100% 

1 Jan 2004, 1 July 2007 (as 
amended) 

19 

Organisational Rights 

100% 

100% 

25-Apr-05 

20 

Payroll Deductions 

100% 

100% 

8-Apr-04 

21 

Performance Management and 

Development 

100% 

100% 

28-May-09 

22 

Recruitment, Selection and 

Appointments 

100% 

100% 

12-Aug-04 

23 

Remuneration Scales and Allowances 

100% 

100% 

21-Apr-lO 

24 

Sexual Harassment 

100% 

100% 

21-Oct-02 

25 

Skills Development 

100% 

100% 

Comply with Act 

26 

Smoking 

100% 

100% 

16-Jul-Ol 

27 

Scarce Skills 

100% 

100% 


28 

Uniforms and Protective Clothing 

100% 

100% 

3-Jun-91 

29 

AARTO 

90.00% 


Pending National Deployment 

30 

Employee Parking Policy 

100% 

100% 

29-Sep-lO 

31 

Talent Management 

100% 

100% 

15-Sep-lO 

32 

Dress Code Guidelines 

100% 

100% 

2-Aug-lO 


233 I P a g e 






Table 4.3. HR Policies and Plans 



Name of Policy 

Completed 

Reviewed 

Date adopted by Council or 
comment on failure to adopt 



% 

% 


33 

Ex-gracia Compensation for loss of 
Personal effects 

100% 

100% 

2-Aug-lO 

34 

Incapacity Management Policy & 
Procedures / III Health / Injury 

100% 

100% 

25-Apr-06 

35 

Guidelines on Secondment & Transfers 

100% 

100% 

lO-Sep-07 

36 

Re-lmbursive Locomotion Allowance 

Scheme 

100% 

100% 

1999 Scheme 

37 

Notching on Appointment 

100% 

100% 

19-Jul-lO 


4.4 CAPACITATING THE MUNICIPAL WORKFORCE 

The Municipality has several well developed capacity development programmes and systems in place, 
including annual Workplace Skills Plans (WSPs), Learnerships and Apprenticeship schemes, Graduate 
Development Programmes, Talent Management & Succession Planning programme. Assisted Education 
programme. Bursary Schemes and a range of internal short courses. 


4.5 OCCUPATIONAL HEALTH 

Occupational health and safety is the promotion and maintenance of the highest degree of physical, mental 
and social well-being of workers in all occupations by preventing departures from health, controlling risks 
and the adaptation of work to people, and people to their jobs. (ILO / WHO 1950) 

In order to achieve this leadership and visionary role in the local government sphere, the eThekwini 
Municipality has realised that this is possible only through the commitment and wellbeing of their people 
and continues to invest in attracting and retaining high performance staff while maintaining a sustainable 
performance culture. 

Through adhering to its vision and values eThekwini Municipality understands the major health issues 
confronting eThekwini Municipality staff and this has informed and become the core focus of its in-house 
integrated Occupational Health and Safety Programme. 

The purpose of the Occupational Health and Safety Unit is the surveillance of the work environment, 
identification and assessment of health hazards, surveillance of employee health in relation to work, to 
prevent illness, promote the health and psycho-social well-being of employees individually and collectively, 
in accordance with highest professional standards and ethical principles. 

In 2013/14 significant progress was made in Occupational health and Safety in improving safety and health 
of all work areas across the municipality. 

The Occupational Health and Safety Unit conducted several programmes that focused on employee safety 
and health and workplace hygiene, including additional programmes such as the implementation of the 


234 I P a g e 




workplace HIV/ AIDs wellness programme unique to the needs and requirements of eThekwini 

Municipality. 


These integrated programmes provided targeted, customised interventions designed and implemented to 
ensure compliance with health and safety legislation; creation of a safe and health-promoting work 
environment, prevention of accidents and injuries and facilitated effective behaviour change for better 
health and safety within the target worker population. The programmes included comprehensive Health 
Risk Assessments and auditing, risk mitigation. Medical Surveillance of those exposed to occupational & 
environmental stress factors, resilience building and close collaboration with stakeholders. 


In line with the above, the Occupational Health and Safety Unit achieved and exceeded 100% of its SDBIP 
targeted interventions this year. Compliance was achieved in respect of the six performance indicators viz. 
medical surveillance, health risk assessments, HIV counselling and testing programmes, wellness 
programmes, peer educator programmes, safety audits, safety training, safety inspections, and 
comprehensive safety interventions to reduce the Disabling Injury Frequency Rate relevant to Injuries on 
Duty. 


Occupational Health Programme 


20,000 

10,000 

0 




Target 
■ Achieved 


Ten thousand and forty nine (10 049) scheduled risk-based medicals were completed (this included, 
preplacement medicals, periodic medicals, fitness assessments, immunizations and biological monitoring). 
Vaccinations were administered to employees exposed to blood and other biological hazards such as 
tetanus (e.g. Health Care workers. Protection Services and sewerage workers.) depending on their 
individual Occupational Risk Exposure Profiles. 4140 primary health care consultations were completed and 
the main presentations were common colds/upper respiratory tract infections followed by musculoskeletal 
problems and gastrointestinal illnesses. Fifty six (56) planned occupational hygiene surveys were completed 
as per schedule (100% achieved). 


These surveys measure hazards and assess risk in a scientific way, e.g. noise levels, dust levels, chemical 
levels in the air, biological hazards, etc. The main focus areas this year include hazardous biological agents, 
noise surveys in wastewater works. Ergonomics surveys and hazardous chemical surveys at various sites. 


235 I P a g e 





23S 


Ceilings are broken and are not stable, or intact. 
It poses a health risk and may fall anytime, thus 
the potential of causing an injury 


Work and / or leg space was poor due to poor 
space availability and / or poor arrangement of 
desks and other furniture 


Ergonomics survey done in November 2013 in HR Metro Police Headquarters 

One hundred and nine (109) peer educators were trained this year. 45 new peer educators successfully 
completed the initial training as peer educators and 64 peer educators had refresher update training. 


One hundred and twelve (112) Wellness programmes were completed thiyear, exceedingng the target of 
80 per annum. 



Water and Sanitation wellness that took place in April 2014 in two different venues 



City Admin Wellness on the 26*^ March 2014 in City Hall 



Eighty eight (88) HIV counselling and testing campaigns were completed this year, exceeding the annual 
target of 80, 2655 HIV counselling and tests for employees were conducted and 26 occupational needle 
stick related injuries were reported and managed. Most needle tick injuries were referred from the Health 
Unit facilities. In total 105 clinic consultations dealt with needle stick injuries and post exposure prophylaxis. 
There were no occupationally acquired HIV infections contracted this year. 


236 I P a g e 


Daily 'toolbox' meetings are held in all workpla^ across the municipality to constantly remind employees 
of the need for each employee to be health and safety conscious. These meetings are based on a principle 
of personal responsibility with regard to safety where the onus is transferred to the individual to practice a 
high level of safety in the workplace. 


Safety Programme 



In respect of Health and Safety Training; aimed at promoting health and safety and thereby increasing 
productivity -more than 10000 employees were trained, exceeding the target of 7000. Higher demands by 
line management and the Workplace Skills Plans for 2013/2014 resulted in the overachievement. Health 
and Safety courses offered include Health and Safety Induction, Health and Safety Representatives training. 
General Health and Safety Course and Fire awareness training. 

Health and Safety Training of 155 Small Contractors occurred to ensure that small contractors are enabled 
to comply with legislation in particular with Construction Regulation of Occupational Health and Safety Act 
those that are involved in Council construction projects. 

To conduct Health and Safety Inspections, Risk Assessments, Surveys is a pro-active intervention to identify 
hazards in the workplaces. More than 1000 hazard identifications were completed. The main focus areas 
were Trading Services Cluster, Human Settlement and Infrastructure Cluster, Health, Safety and Social 
Services Cluster, City Fleet, Market and City Health. 



As per pictorial presentation it is positively 
noted that the facility has been refurbished to 
accommodate for the increase number of staff. 
However the facility presents indications that 
the workmanship of the facility is questionable. 
Signs of water seepage are present in the new 
facility. 



improvement with regards to the facility. 
Previous drainage problems and Housekeeping 
issues have been eradicated with the 
refurbishment. Management is to be 
commended on the improvements to the 
facility. 


A health and safety inspection that was done in June 2014 at eThekwini Solid Waste Unit, beach and 
point 


237 I P a g e 






240 




Damaged asbestos roof sheeting that need to be 
replaced 


Condition of the showers the employees use on a 
daily basis 




A health and safety audit that was done in June 2014 at Hillcrest Road and Storm Water Depot 

New Health and Safety Committees were established and resurrected in the Real Estate Unit, City Police 
Unit, Cleansing and Solid Waste Unit and Water and Sanitation Unit. 

There has been a decrease in the Disabling Injury Frequency Rate (DIFR) to below 1 (one) this year due to 
the success of proactive programmes such as Health and Safety Inspections, Risk Assessments, Compliance 
Audits, Workplace surveys, effective Health and Safety Committees and Health and Safety Training and 
awareness contributed positively to this achievement. 

As a unit, issues of attracting and retaining scarce skilled staff is on-going with a number of skilled staff 
leaving and the inability to attract new staff. Every effort has been made to increase our ability to attract 
and retain staff which includes motivation for the payment of scarce skills allowances to those categories 
of staff that were found, through market research, to be possessing scarce skills. 

In order to ensure continued improvement in service delivery, the OHS Unit is continuing with an internal 
restructuring process to create an efficient and effective Occupational Health and Safety service for the 
Municipality. 

Synergy is fostered on a continuous basis between Occupational Health and Safety Unit and various 
Employee Health and Wellbeing stakeholders in the municipality such as Human Resources, all Line units' 
management and the Employee Assistance Wellness programme. 

The Injury on Duty process review was completed to ensure that the Injury on Duty reporting process is 
streamlined. 

The Occupational Health and Safety Unit has also implemented an electronic reporting system in 
conjunction with the Information Systems department to enhance efficiency within the unit. 

Overall 2013/14 has been a year of remarkable achievements and will be the foundation for further 
enhanced achievements in the future. 


238 I P a g e 


CHAPTER FIVE - FINANCIAL PERFORMANCE 


241 


5.1. Introduction 

The Annual Financial Statements were completed within the statutory timeframe. 

The Annual Financial statements, Appendix A, include the statement of financial performance, financial 
position and cash flow. These statements are followed by a financial commentary, supplementary 
information, and notes to the financial statements. 

The City has 3.442 million residents and contributes approximately 15% of the national GDP and 60.7% of 
the provincial GDP. Accordingly, the eThekwini Municipality remains the main driver of the KwaZulu-Natal 
economy and a pivotal role player in the South African economy. However, despite more jobs being 
created, unemployment remains a challenge. 

An analysis of the Municipality's financial statements reveals the City's drive to increase capital expenditure 
and maintain stable operating expenditure. In this regard, the City achieved an outstanding 109% capital 
spend, including the spend on housing (Department of Housing funds). This is up by about 20% from the 
previous financial year. It was achieved mainly due to weekly monitoring meetings to check on the progress 
made on the Top 150 capital projects, as well as the drive to implement procurement scheduling. 

Our total spend on procurement increased significantly. Another 85% of this spend is on local companies. 
A number of initiatives were implemented to ensure value for money. One such initiative is the 
benchmarking of the prices of all goods and services and another is the managing the performance of 
service providers and suppliers through service level agreements. We are also looking at SABS standards, 
as well as the ISO 9001 accreditation of our SCM business processes. E-procurement has also been a key 
focus and our quotes management system has helped reduce human interference in procurement under 
R200 000. 

Despite the persistent tough economic conditions and high borrowing rates, the municipality achieved an 
average investment return of 5.993% which is slightly up from the previous financial year. More 
encouragingly, despite the sovereign being downgraded, the City managed to improve its credit rating to 
A1+ for the short-term and AA- for the long-term. This is the best in the municipal sector. A major 
contributing factor was the City's outstanding collection rate of 104.84%. This is also the best in the country 
for Metros. 

Despite the increased capital spend and poor economic climate, the City still managed to achieve very 
strong liquidity. At the financial year end cash and cash equivalents on hand was R6.9 billion. This equates 
to 109 days cash on hand, which is above the National Treasury benchmark. 

Moreover, the City displays robust solvency. The gearing ratio is very moderate at 39%, which is below the 
National Treasury benchmark of 45%. The outlook also looks very favourable as borrowings of only R1 
billion per annum is planned for the next three financial years, subject to the market. This indicates that 
there is still capacity to borrow. 

The Municipality also continued its proud record of always receiving an unqualified audit report since 
inception. 


239 I P a g e 



242 


STATEMENTS OF FINANCIAL PERFORMANCE 

Financial Summary 

R' 000 

Description 

Previous Year 2012/2013 

2012/2013 Variance 

Current Year 2013/2014 

2013/2014Variance 

Original 

Budget 

Adjusted 

Budget 

Actual 

Original 

Budget 

Adjustmen 
ts Budget 

Original 

Budget 

Adjusted 

Budget 

Actual 

Original 

Budget 

Adjustments 

Budget 

Financial Performance 











Property rates 

4 844 103 

4 844 103 

4 918 885 

1.54% 

1.54% 

5 136 991 

5 136 991 

5 298 905 

3.15% 

3.15% 

Service charges 

13 513 490 

13 514 287 

12 467 301 

-7.74% 

-7.75% 

14 216 000 

14 216 000 

13 076 734 

-8.01% 

-8.01% 

Investment revenue 

239 754 

244 707 

416683 

73.80% 

70.28% 

374 237 

376 838 

477 911 

27.7% 

26.82% 

Transfers recognised - 
operational 

2 126 964 

2 192 674 

2 026 005 

-4.75% 

-7.60% 

2 359 637 

2 172 910 

2 191385 

-7.13% 

0.85% 

Other own revenue 

2 937 906 

3 013 646 

319 4113 

8.72% 

5.99% 

3 110 885 

3 117 443 

3 378 579 

8.61% 

8.38% 

Total Revnue 
(excluding capital 
transfers and 
contributions) 

23 662 217 

23 809 417 

23 022 987 

-2.70% 

-3.30% 

25197750 

25020182 

24423514 

-3.07% 

2.38% 

Employee costs 

(6 104 168) 

(6 145 033) 

(6021 630) 

-1.35% 

-2.01% 

(6681 852) 

(6692 368) 

(6893 729) 

3.17% 

3.01% 

Remuneration of 

councilors 

(83 766) 

(88 681) 

(84 713) 

1.13% 

-4.47% 

(104 516) 

(94 841) 

(94 721) 

-9.37% 

-0.13% 

Debt impairment 

(550 000) 

(475 441) 

(1064 847) 

93.61% 

123.9% 

(536 625) 

(536 915) 

(1618 726) 

201.65% 

201.49% 

Depreciation & asset 
impairment 

(1 849 181) 

(1811 505) 

(1695052) 

-8.33% 

-6.43 % 

(1842 045) 

(1794 554) 

(1740 969) 

-5.49% 

-2.99% 

Finance charges 

(1 247 576) 

(1224 309) 

(942081) 

-24.49% 

-23.05% 

(1168 516) 

(1100 623) 

(857 206) 

-26.64% 

-22.12% 

Materials and bulk 
purchases 

(7 858 874) 

(7885 354) 

(7557 474) 

-3.84% 

-4.16% 

(8051 963) 

(8115 175) 

(7839 588) 

-2.64% 

-3.40% 




243 


Transfers and grants 

(174 319) 

(279 303) 

(171574) 

-1.57% 

-38.57% 

(203 713) 

(173 934) 

(166 133) 

-18.45% 

-4.49% 

Other expenditure 

(5883 395) 

(6110 084) 

4 581119 

-22.13% 

-25.02% 

(6386 845) 

(6161336) 

(5 266 448) 

-17.54% 

-14.52% 

Total Expenditure 

(23751279) 

(24019710) 

(22118490) 

-6.87% 

-7.92% 

(24976075) 

(24669746) 

(24477520) 

-1.99% 

-0.78 

Transfers recognised - 
capital 

2 831 077 

1 636 016 

1 631 745 

-42.36% 

-0.26% 

3 183 431 

2 557 281 

2 041 010 

-35.89% 

-20.19% 

Surplus / (Deficit) 

(89062) 

(210293) 

904497 



221675 

350436 

(54006) 



Surplus/(Deficit) after 
capital transfers & 
contributions 

2 742 015 

1 425 723 

2 389 018 

-7.50% 

77.89% 

3 405 106 

2 907 717 

1 987004 

-41.65% 

-31.66% 























Caoital expenditure & 
funds sources 











Capital expenditure 

5 308 715 

4 331 152 

3 494 716 

-34.17% 

-19.31% 

5 466 766 

4 744 652 

4 201662 

-23.14% 

-11.44% 

Transfers recognised - 
capital 

2 831 077 

1636 016 

1 631 745 

-42.36% 

-0.26% 

3 183 431 

2 557 281 

2 041010 

-35.89% 

-20.19% 

Public contributions & 

donations 

55 000 

55 000 


-100.00% 

-100.00% 




0.00% 

0.00% 

Borrowing 

1 500 000 

750 000 


-100.00% 

-100.00% 

1 000 000 

1 500 000 

1 500000 

50.00% 

0.00% 

Internally generated 
funds 

922638 

1 890 136 

1862 971 

101.92% 

-1.44% 

1 283 335 

687 371 

660612 

-48.52% 

-3.89% 

Total sources of 
capital funds 

5 308 715 

4 331 152 

3 494 716 

-34.17% 

-19.31% 

5 466 766 

4 744 652 

4 201622 

-23.14% 

-11.44% 

Financial oosition 











Total current assets 

10 061 804 

10 156 826 

11503 561 

14.33% 

13.26% 

12 612 193 

13 064 991 

13 163816 

4.37% 

0.76% 

Total non-current 

assets 

39 106 205 

38 482 923 

37 430 275 

-4.29% 

-2.74% 

42 024 408 

42 030 442 

39 823426 

-5.24% 

-5.25% 

Total current liabilities 

7 215 541 

7 644 022 

9 270 341 

28.48% 

21.28% 

8 718 510 

8 718 634 

10 695464 

22.68% 

22.67% 



244 


Total non-current 

liabilities 

12 690 466 

12 049 180 

12 133 811 

-4.39% 

0.70% 

12 354 132 

12 854 132 

12 775090 

3.41% 

-0.61% 

Community 

wealth/Equity 

29 262 002 

28 946 547 

27 529 684 

-5.92% 

-4.89% 

33 563 959 

3 522 667 

29 516688 

-12.06% 

-11.95% 












Cash flows 











Cash / cash 
equivalents at the 
beginning of the vear 

3726916 

3726916 

5025483 

34.84% 

38.84% 

4786848 

5286850 

5559709 

16.15% 

5.16% 

Net cash from (used) 
operating 

4 940 054 

4 047 425 

4 215 923 

-14.66% 

4.16% 

5 546 506 

5 203 965 

5 041837 

-9.10% 

-3.12% 

Net cash from (used) 
investing 

(5 320148) 

(4 327 051) 

(2 897 684) 

-45.53% 

-33.03% 

(4 925758) 

(4 746858) 

(4 111416) 

-16.53% 

-13.39% 

Net cash from (used) 
financing 

704 476 

(45 524) 

(784 013) 

-211.29% 

1622.20% 

(101872) 

398 130 

369562 

-462.77% 

-7.18% 

Cash/cash equivalents 
at the year end 

4 051 298 

3 401 766 

5 559 709 

37.23% 

63.44% 

5 305 724 

6 142 087 

6 859692 

29.29% 

11.68% 












Cash backing/surolus 

reconciliation 











Cash and investments 

available 

3 611 112 

3 610 280 

5 559 709 

53.96% 

54.00% 

5 861 255 

6 309 615 

6 859692 

17.03% 

8.72% 

Application of cash 
and investments 

(284 929) 

(1859 875) 

(3404 579) 

1094.89% 

83.05% 

(3317 548) 

(3 315 930) 

(3502 005) 

5.56% 

5.61% 

Balance - surplus 
(shortfall) 

3 326 183 

1 750 405 

2 155 130 

-35.21% 

23.12% 

2 543 707 

2 993 685 

3 357687 

31.99% 

12.16% 












Asset management 











Asset register 
summary (WDV) 

38 715 439 

38 092 157 

36 771410 

-5.02% 

-3.47% 

41 626 346 

41 631 958 

39 225988 

-5.77% 

-5.78% 













245 


Renewal of Existing 
Assets 

1 870 236 

1 878 002 

1 485 447 

-20.57% 

-20.90% 

1794 952 

2 313 906 

2 313906 

28.91% 

0.00% 

Repairs and 
Maintenance 

2 489 703 

2 092 971 

1 780 196 

-28.50% 

-14.94% 

2 840 845 

2 722 614 

2 019123 

-28.93% 

-25.84% 












Free services 











Cost of Free Basic 
Services provided 

940 808 

1 130 808 

1 305 152 

38.73% 

15.42% 

1 188 671 

1 185 442 

1 185522 

-0.26% 

0.01% 

Revenue cost of free 
services provided 

2 185 430 

2 387 430 

2 642 169 

20.90% 

10.67% 

2 774 656 

2 770 267 

2 770314 

-0.16% 

0.00% 

Households below 
minimum service 
level 











Water 

73 

74 

87 

19.18% 

17.57% 

80 

80 

80 

0.00% 

0.00% 

Sanitation/ Sewerage 

219 

283 

212 

-3.20% 

-25.09% 

202 

202 

202 

0.00% 

0.00% 

Energy 

358 

358 

358 

0.00% 

0.00% 

363 

363 

363 

0.00% 

0.00% 

Refuse 









0.00% 

0.00% 












Variances are calculated 

by dividing the difference between actual and 

1 original/adjustments budget by original/adjusted budget. 

Comment 

The deficit for the year of R54 006m, is lower than the R350 436m surplus originally budgeted for resulting in an unfavourable variance of R404 442m (excluding transfers 
and contributions from Capital). 



246 


5.3 GRANTS 


Grant Performance 

R' 000 

Description 

2012/2013 

2012/2013 Variance 

2013/2014 

2013/2014 Variance 

Budget 

Adjustments 

Budget 

Actual 

Original 

Budget 

{%) 

Adjustments 

Budget 

{%) 

Budget 

Adjustments 

Budget 

Actual 

Original 
Budget (%) 

Adjustment 
Budget (%) 












Operating Transfers 
and Grants 











National Government: 

3 808 819 

3 805 819 

3 335 478 

-12% 

-12% 

4 353 130 

4 153 130 

3 930 577 

-10% 

-10% 

Equitable share 

1 769 412 

1 769 412 

1 769 412 

0% 

0% 

1 869 806 

1 869 806 

1 869 806 

0% 

0% 

Urban Settlements 
Development Grant 

1 287 560 

1 287 560 

1 315 929 

2% 

2% 

1 580 999 

1 580 999 

1 580 999 

0% 

0% 

Financial Management 
Grant 

1 500 

1 500 

1500 

0% 

0% 

1 250 

1 250 

1 250 

0% 

0% 

SRSA 

28 923 

28 923 

28 923 

0% 

0% 






Infrastructure Skills 
Development Grant 

25 930 

22 930 

19 773 

-24% 

-14% 

18 500 

18 500 

18 534 

0% 

0% 

PTIF 

595 510 

595 510 

124 328 

-79% 

-79% 

707 366 

507 366 

285 298 

-60% 

-44% 

Vuna Awards 

188 

188 

188 

0% 

0% 



1 035 



National Economic 
Development 

125 

125 

125 

0% 

0% 






Expanded Public 

Works Programme 

42 356 

42 356 

24 471 

-42% 

-42% 

47 381 

47 381 

59 747 

26% 

26% 

Neighborhood 
Development Grant 

10 000 

10 000 

3 514 

-65% 

-65% 

3 

555 

3 555 

4 769 

34% 

34% 

Demand Side 
Management 

31 772 

31772 

31 772 

0% 

0% 

15 000 

15 000 

692 

-95% 

-95% 


244 I P a g e 


Department of 
Environment Affairs 

2 768 

2 768 

2 768 

0% 

0% 

8 250 

8 250 

7 435 

-10% 

-10% 

Special Grant-IGR 

7 775 

7 775 

7 775 

0% 

0% 






National Electrification 
Programme 

5 000 

5 000 

5 000 

0% 

0% 

20 000 

20 000 

20 000 

0% 

0% 

National Research 

Fund 



0 



89 

89 

78 

0% 

0% 

Public Transport 
Network Operations 






71395 

71 395 

71 395 

0% 

0% 

Intergrated City 
Development 






9 539 

9 539 

9 539 

0% 

0% 












Provincial 

Government: 

375 974 

375 974 

270 035 

-28.18% 

-0.28 

364 302 

364 302 

271 781 

-25.40% 

-25% 

Department of 
Economic and 

Activities and Various 

Industries 











Department of Arts 
and Culture : KZN 

77 609 

77 609 

3 360 



158 845 

158 845 

13 084 



Office of the Premier: 

KZN 


_ 









LGSETA 


- 









Grant Accreditation 

4 525 

4 525 

4 584 

1% 

1% 

14 823 

14 823 

939 

-94% 

-94% 

KZNPA Subsidy 

19 453 

19 453 

19 453 

0% 

0% 

4 153 

4 153 

4 153 

0% 

0% 

Provincial Grants & 

Subsidies 

16 717 

16 717 

14 241 

-15% 

-15% 






Municipal Transport 
Authority 

32 

32 

32 

0% 

0% 

_ 

_ 

_ 



Government Health 
Subsidy 

68 957 

68 957 

68 957 

0% 

0% 

97 088 

97 088 

97 088 

0% 

0% 

D.Moss 

289 

289 

289 

0% 

0% 


















245 I P a g e 



District Municipality: 
[insert description] 


District Municipality: 






[insert description] 












Other grant providers: 

53 797 

53 797 

52 236 

-3% 


DBS A 

40 

40 

40 

0% 


Public Contribution 

46 916 

46 916 

46 916 

0% 


LTDF Grant 

73 

73 

73 

0% 


Cifal 

1 690 

1 690 

1 690 

0% 


Acca 

12 

12 

12 

0% 


Developers 

Contribution 

1 546 

1 546 

1 546 

0% 


Royal Netherlands 

271 

271 

271 

0% 


D.Moss 


— 




Leeds 

_ 

_ 

_ 



Reforestation 

0 

0 

- 

-100% 


Metropolitan 


- 




Disaster Fund 

1 500 

1 500 

_ 

-100% 


Biowaste 

430 

430 

7 

-98% 


Danida 

_ 

_ 

_ 

0% 


Dalisu 

48 

48 

48 

0% 


City Managers Fund 


— 











Unesco 


193 


193 


193 


0% 














-3% 

17 885 

17 885 

30 037 

0% 

_ 

_ 

181 

0% 

1 818 

1 818 

21 229 

0% 

_ 

_ 

453 

0% 




0% 




0% 




0% 



156 






_ 

_ 

128 

-100% 

6 999 

6 999 

607 





-100% 

_ 

_ 

544 

-98% 

2 395 

2 395 

112 

0% 

295 

295 

_ 

0% 

_ 

_ 

27 





0% 





246 I P a g e 


Lotto 




0% 

0% 



2 370 



Natural Reserve Fund 

187 

187 

187 

0% 

0% 



713 



Maritime Museum 

Trust Fund 

400 

400 

400 

0% 

0% 






Skills Grant LG Seta 

153 

153 

153 

0% 

0% 



582 



SAASTA 






108 

108 

97 



Public Sponsorship 






_ 

_ 

63 



BMZ: Umhiangane 






1 906 

1906 

2 092 



Dubai Municipality 






84 

84 

84 



Flenvinet 






_ 

_ 

13 














Total Operating 
Transfers and Grants 

4 238 590 


3 657 749 

-13.70% 

0.00% 

4 735 317 


4 232 396 

-11% 

33% 

Variances are calculated 

by dividing the difference between actual anc 

1 original/adjustments budget by the original/adjustments 1 

3udget. 



Comments: 

R820 million of the Department of Transport and Public Transport Infrastructure grant was unspent at the year ended 30 June 2014. 

The reasons for the slower than expected performance can be summarised as follows:- 

• Continuing delays in the finalisation of the site allocation for the Transport Management Centre (TMC) which has delayed progress and spending on the TMC. This 
issue has finally been resolved and tenders for the design and construction of the TMC will be advertised in the 3'''* quarter of 2014/15 financial year, with construction 
expected to start in the 2015/16 financial year. The 2016 operations will be serviced by the existing TMC which has been upgraded for this purpose. 

• Delays in the procurement process to appoint the professional teams for detailed design for C3 and Cl in the 12/13 financial year meant that construction could not 
start as early as planned. All professional teams have now been appointed and are performing to schedule. 

• Delays in the appointment of construction contractors for C3. All contractors, except two, have been appointed and construction on C3 is well underway. 


247 I P a g e 



Grants Received From Sources 0th 

!f^an Division of Revenue Act (DORA) 

Details of Donor 

Actual Grant 
2013/2014 

2013/2014 

Municipal 

Contribution 

Date Grant terminates 

Date 

Municipal 

contribution 

terminates 

Nature and benefit from the grant 

received, include description of any contributions in kind 







Dirco 

80 365 

21 740 

31-Dec-ll 

31-Dec-ll 

The Grant was received from the Department of International 

Relations for the 2011 COP17 that was held in Durban 







Rockerfeller 

Foundation 

1 508 


30-Jun-12 


Project Support Grant for Climate Change Additional Plan 







Mondi Paper 

683 





Dalisu 

26 517 

0 

Terminated. Funds were 

carried over from 
previous year and have 
been fully utilised in 
2013/14. 

N/A 

Utilised for the development of a low cost GIS system. 

Public Sponsorship 

62 797 

Nil 

30-Jun-16 

30-Jun-16 

Air quality Management( Environment Flealth) 

DBSA 

180 580 

N/A 

30/06/2014 

30/06/2014 

Community Education Programs 

SAASTA 

97 042 

0 

Completion of projects 


National Science Week 

Leeds Grant 

127 543 

Nil 

Project Completed 

N/A 

Business support and Leeds City Council has a program around SMME 
development which is called Lion's Den Competition. The grant 
received from Leeds is 30 000 pounds and is paid to local SMME's 
who won the competition. 

LTDF Grants 

452 100 

0 

Terminated. Funds were 

carried over from 
previous year and have 
been fully utilised in 
2013/14. 

N/A 

Used to promote a sustainable city as part of the Sustainable Cities - 
Plus Network project. 


248 I P a g e 


SKILLS GRANT LG 

SETA 

582 100 

0 

N/A 


Grant expenditure was incurred to pay for middle managers training 
on Foundations of Project Management. 

BMZ: Umhlangane 

2092149 

66 100.00 

31-Dec-16 

31-Dec-16 

Restore local biodiversity in the Umhlangane Catchment, monitor and 
report on the effectiveness of ecosystem rehabilitation in 
contributing to ecosystem based adaption, generate income for the 
local population through the creation of job opportunities and ensure 
effective management of a complex , cross sectoral initiative. 

Biowaste 

111 538 

119 700 

30/06/2015 

n/a 

The project aims at developing biotechnological processes for 
converting biodegradable fractions of identified African agricultural 
and industrial waste as well as fractions of municipal and animal solid 
waste into food, feed, value added(nutraceuticals and health care) 
products, biogas and organic based fertilizer. 

Reforestation 

607 292 

9 528 176.05 

03-Mar-16 

03-Mar-16 

The Green Fund was initiated and designed to provide catalytic 
finance to facilitate investment in green initiatives for poverty 
reduction and job creation which would not have been implemented 
without fiscal support.The Green Fund is additional and 
complementary to existing fiscal allocations supporting the 
transitioning of the South African economy to a low carbon,resource 
efficient and climate resilient growth part.These Reforestration 
projects were initiated with the aim of mitigating carbon emissions 
through thre reforestration large tracts of indigenous forests and 
other natural habitats. 

Royal Netherlands 

11 604 164 

N/A 

30/06/2014 

30/06/2014 

Non Revenue water Losses and investigation into Trenchless 
Technology 

Dubai Municipality 

84 244 

N/A 

30/06/2014 

30/06/2014 

Grant received for best practices in saving the environment .Utilised 
for upliftment of Landfill facilities 

LOTTO 

2 370 056 

0 

Completion of projects 


Cato Manor: Queen Thomo Memorial & Landscaping and ancillary 
works. 

Natural Reserve : 
Trust Fund 

713 210 

0 

Completion of projects 


Expenditure of funds: Silverglen , Paradise valley and Virginia bush 
trust. 

Heavinet 

13 234 

Nil 

30-Jun-14 

30-Jun-16 

Air quality Management! Environment Flealth) 


Grantsreceivedhave been spent in accordance with the DORA requirements. 


249 I P a g e 



5.4 ASSET MANAGEMENT 


252 


Since 2004 the council has focused its efforts towards efficient asset management. Asset managers were appointed in strategic areas. Detailed asset registers have been 
updated in partnership with engineers. There has been a focus on accurate conditional assessments of assets & assessment of replacement costs. Asset registers have been 
linked to the GIS system & include photographic imagery.A detailed Asset Management Policy Guideline has been developed and implemented. 


TREATMENT OF THE THREE LARGEST ASSETS ACQUIRED 2013/14 

Asset 1 

Name 

ROADS(Rehab of Griffith Mxeng Highway)*1239237 

Description 

Surfaced Roads 

Asset Type 

Fixed 

Key Staff Involved 

Roads Provision Department:- 

Pavement & Geotechnical Engineering Branch 

Road Rehabilitation Branch 

Staff Responsibilities 

Network level assessment of roads appearing on the asset register are conducted by the Pavement & Geotechnical Engineering 

Branch for implementation by the Roads Rehabilitation Branch. 

Asset Value 


R76.4million 

Capital Implications 

Potential deterioration of road network below acceptable levels of service requiring continuous funding at recommended levels. 

Future Purpose of Asset 

Continued provision of a functional road network at an acceptable level of service. 

Describe Key Issues 

Funding 

Policies in Place to Manager Asset 

Asset Management Plan (Roads) 

Road Handover Policy 


Asset 2 

Name 

ABLUTION BLOCKS IN SITU UPGRADE 

Description 

Ablution facilities 

Asset Type 

Infrastructure asset 

Key Staff Involved 

Operation and Maintenance staff 

Staff Responsibilities 

Operation and Maintenance 

Asset Value 

R208.3million 


250 I P a g e 



253 

Capital Implications 

Budget allocations to keep pace with rising rehabilitation costs on ablution facilities 

Future Purpose of Asset 

Water and sanitation connections to be utilized for upgraded settlement . Then facility to be relocated to another settlement . 

Describe Key Issues 

High operational costs .Lack of resources and funding for 0 & M 

Policies in Place to Manager Asset 

Education programme and Fault Reporting facility in place. Employment of caretakers and maintenance staff . 


Asset 3 

Name 

Ohiange/ Phoenix Link 

Description 

Waste Water Treatment Works 

Asset Type 

Waste Water Treatment Works 

Key Staff Involved 

Operational plus Design staff 

Staff Responsibilities 

Operating plant to meet / better DWA 
effluentrequirements 

Asset Value 





R174.4million 




Capital Implications 

Duplication of existing Ohiange Pump Station, new rising main and trunk sewer to Phoenix WWTW. 

Future Purpose of Asset 

To provide bulk sewer infrastructure to serve the northern ans eastern developments of Cornubia, to transfer excess wastewater 
from Umhianga WWTW to Phoenix WWTW and to reduce load on the Waterloo Pump Station. 

Describe Key Issues 

Maintenance of pump station and pipeline 

Policies in Place to Manager Asset 

Operational Procedures in place . Maintenance is scheduled. Asset upgraded as a result of capacity and legislation as a cost effective 
solution. 


The increased effort in focusing on asset management has assisted the municipality in ensuring that assets are properly maintained & service delivery is enhanced. 


251 I P a g e 


254 


REPAIRS AND MAINTENANCE EXPENDITURE 2013/14 



R' 000 


Original Budget 

Adjustment Budget 

Actual 

Budget 

variance 


2 132 079 

1 745 844 

2 019 123 

16% 







eThekwini spent 116% of it's repairs and maintenance budget during the year under review . On average the city spends between 8% and 10 % of it's operating 
expenditure on repairs and maintenance. 


252 I P a g e 




5.5 Performance Indicators and Benchmarks 


255 


Choose name from list - Supporting Table SA8 Performance indicators and benchmarks 

Description of 
financial indicator 

Basis of calculation 

2012/13 

2013/14 


2014/2015 Medium Term 
Revenue & Expenditure 
Framework 


Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Audited 

Outcome 

Budget 

Year 

2014/15 

Budget Year 
+1 2015/16 

Budget 

Year +2 
2016/17 


Borrowing 

Management 











Borrowing to 

Asset Ratio 

Total Long-Term 
Borrowing/Total Assets 

20.4% 

19.2% 

19.9% 

19.9% 

19.6% 

18.6% 

17.0% 

15.7% 


Credit Rating 


AA 

AA- 

AA- 

AA- 

AA- 

AA- 

AA- 

AA- 


Capital Charges to 

Operating 

Expenditure 

Interest & Principal 

Paid /Operating 
Expenditure 

8.1% 

9.3% 

9.1% 

8.3% 

8.3% 

8.2% 

8.4% 

7.5% 


Borrowed funding 
of 'own' capital 
expenditure 

Borrowing/Capital 
expenditure excl. 
transfers and grants 
and contributions 

0.0% 

43.8% 

68.6% 

63.3% 

69.4% 

42.9% 

38.4% 

33.9% 


Safetv of Caoital 











Debt to Equity 

Loans, Creditors, 
Overdraft & Tax 
Provision/ Funds & 
Reserves 

77.7% 

62.8% 

64% 

67.0% 

79.5% 

61.0% 

55.3% 

50.3% 


Gearing 

Long Term Borrowing/ 
Funds & Reserves 

36.3% 

36.8% 

38.3% 

39.6% 

39% 

35.5% 

31.8% 

28.4% 


Liauiditv 











Current Ratio 

Current assets/current 
liabilities 

1.2 

1.4 

1.5 

1.5 

1.23 

1.4 

1.4 

1.4 


Current Ratio 
adjusted for aged 
debtors 

Current assets less 

debtors > 90 
days/current liabilities 

1.2 

1.4 

1.5 

1.5 

1.23 

1.4 

1.4 

1.4 



253 I P a g e 




Liquidity Ratio 

Monetary 

Assets/Current 

Liabilities 

0.6 

0.7 

0.7 


0.7 

0.7 

0.6 

0.6 


Revenue 

Management 











Annual Debtors 

Collection Rate 
(Payment Level %) 

Last 12 Months 
Receipts/Last 12 Mths 
Billing 

96.2% 

96.7% 

96.7% 

96.7% 

104.84% 

96.8% 

96.6% 

96.6% 


Outstanding 
Debtors to 

Revenue 

Total Outstanding 
Debtors to Annual 

Revenue 

22.0% 

24.7% 

24.8% 

24.2% 

21.3% 

22.5% 

21.7% 

21.0% 


Longstanding 

Debtors 

Recovered 

Debtors > 12 Mths 
Recovered/Total 

Debtors > 12 Months 

Old 










Creditors 

Management 











Creditors System 
Efficiency 

% of Creditors Paid 

Within Terms 
(within'MFMA' s65 
(e)) 

100.0% 

100.0% 

100.0% 

100.0% 

100.0% 

100.0% 

100.0% 

100.0% 


Funding of 
Provisions 












254 I P a g e 





257 


Provisions not 

funded - % 

Unfunded 

Provns./Total 

Provisions 










Other Indicators 











Electricity 

Distribution 

Losses (2) 

% Volume (units 
purchased and 
generated less units 
sold) /units purchased 
and generated 

5.9% 

5.9% 

5.9% 

5.9% 

6.1% 

5.9% 

5.9% 

5.9% 


Water 

Distribution 

Losses (2) 

% Volume (units 
purchased and own 
source less units sold) 
/Total units 
purchased and own 

source 

37.3% 

34.5% 

38.5% 

38.5% 

39.2% 

38.0% 

34.0% 

32.0% 


Employee costs 

Employee costs/(Total 
Revenue - capital 
revenue) 

26.3% 

26.5% 

26.6% 

26.5% 

28.2% 

27.5% 

27.7% 

27.7% 


Remuneration 

Total 

remuneration/(Total 
Revenue - capital 
revenue) 

26.6% 

28.4% 

28.50% 

28.2% 

28.6% 

29.2% 

29.4% 

29.4% 


Repairs & 
Maintenance 

R&M/(Total Revenue 
excluding capital 
revenue) 

7.8% 

11.3% 

10.8% 

12.0% 

8.3% 

11.6% 

11.5% 

11.5% 


Finance charges 
& Depreciation 

FC&D/(Total Revenue 
- capital revenue) 

11.2% 

11.9% 

12.0% 

12.1% 

10.6% 

11.9% 

11.4% 

11.2% 


IDP regulation 
financial viabilitv 
indicators 












255 I P a g e 



i. Debt coverage 

(Total Operating 
Revenue - Operating 
Grants) /Debt service 
payments due within 
financial year) 

12.80 

13.90 

13.90 


11.1 

12.9 

14.7 

15.7 


ii.O/S Service 
Debtors to 

Revenue 

Total outstanding 
service 

debtors/annual 
revenue received for 

services 

39.4% 

30% 

30% 

30.4% 

26.2% 

28.3% 

27.2% 

26.3% 


iii. Cost coverage 

(Available cash + 
Investments) 

/monthly fixed 

operational 

expenditure 

3.6 

3.20 

3.30 

3.3 

4.7 

2.8 

2.4 

2.1 



References 

1. Consumer debtors > 12 months old are excluded from current assets 

2. Only include if services provided by the municipaiity 


256 I P a g e 





5.6 FINANCIAL RATIO BASED ON KEY PERFORMANCE INDIC;i^§^ (based on SA08) 


LIQUIDITY RATIO 



Financial Year 

Liquidity Ratio 

2012 

0.5 

2013 

0.6 

2014 

0.7 


257 I P a g e 



Cost Coverage: It explains how many months expenditure can be covered by the cash and other liquid 
assets available to the Municipality excluding utilisation of grants. 

Whilst the ratio has increased from the prior years, ensuring that it is still above the norm range of 1 
month to 3 months. Existing cash and other cash equivelants can sufficiently cover 4.7 months 
expenditure even if no further cash is recieved as of even date. 


Financial Year 

Cost Coverage Ratio 

2012 

3.4 times 

2013 

3.6 times 

2014 

4.7 times 


258 I P a g e 


262 

Total Outstanding Service Debtors 



Total Outstanding Service Debtors: Measures how much money is still owed by the 
community for water, electricity, waste removal and sanitation compared to how much 
money has been paid for these services. It is calculated by dividing the total outstanding 
debtors by the total annual revenue. A lower score is better. 

This ratio improved from the prior year. The improvement is attributable to active credit 
control and debt collection measures undertaken with collection rates on average being 
in excess of 100%. 


Financial Year 

Ratio 

2012 

39% 

2013 

39% 

2014 

26.2% 


259 I P a g e 



263 — 

Debt Coverage 



Debt Coverage: The number of times debt payments can be accommodated within 
operating revenue (excluding grants). This in turn represents the ease with which 
debt payments can be accommodated by the Municipality. 

Debt coverage reflects a decrease when compared to the previous years indicating 
that the city's ease in repayment of its debt has deteriorated. This decrease is due 
to an increase in loan repayments. 

However, the municipality is still in a good position as its can cover its debt 
repayment over 11.1 times. 


Financial Year 

Debt Coverage Ratio 

2012 

15 times 

2013 

13 times 

2014 

11.1 times 


260 I P a g e 


264 


Creditors System Efficiency 



Creditor System Efficiency - The proportion of creditors paid within terms (i.e. 30 
days). This ratio is calculated by outstanding trade creditors divided by credit 
purchases 

Data used from MBRRSAS 5.4.5 

Ethekwini maintains its policy to pay its creditors within 30 days and accordingly 
the constant 100% payment levels to creditors is maintained in line with the 
MFMA. 


Financial Year 

Creditors efficiency 

2011 

100 

2012 

100 

2013 

100 

2014 

100 


261 I P a g e 


265 


Capital Charges to Operating Expenditure 



2012 


2013 


2014 


Capital Charges to Operating Expenditure ratio is calculated by dividing the sum of capital 
interest and principle paid by the total operating expenditure. 

The ratio of 8% remains at the same level as the previous year and compares favourably 
with the national norms of between 6% to 8%. 


Financial Year 

Ratio 

2012 

6% 

2013 

8% 

2014 

8.3% 


262 I P a g e 


266 


Employee Costs 



Employee cost: Measures what portion of the revenue was spent on paying 
employee costs. It is calculated by dividing the total employee cost by the 
difference between total revenue and capital revenue. 

Employee. related costs as a percentage of operating revenue has increased from 
26.3% on the previous year to 28.2%, which is within the norm of between 
25%-40% . The increment in the ratio is due to changes in conditions of service 
attributable to employees in the current year and filling of vacancies. 


Financial Year 

Employee cost/ 

Revenue(%) 

2012 

29% 

2013 

26.3% 

2014 

28.2% 


263 I P a g e 


267 



Financial Year 

Repairs and maintenance/ 
Operating expenditure(%) 

2012 

8.1% 

2013 

7.8% 

2014 

8.3% 


264 I P a g e 


5.7 SPENDING AGAINST CAPITAL BUDGET 


268 


Introduction 

Capital expenditure relates mainly to construction projects that will have value lasting over many years. Capital 
expenditure is funded from grants, borrowings, and operating expenditures and surpluses. 


Capital Expenditure 2013/14 


30.000 

25.000 

20.000 

c 

_o 

i 15,000 

oe 

10,000 

5,000 

0 



■ 1. Capital Expenditure 

■ operating 


Savings is mainly as a result of a delay in the implementation of IRPTN grant funded projects, a 
number of projects were in the planning phase. 

The capital expenditure of R4.2billion excludes expenditure on Housing top structure. If this housing expenditure is 
included as was the case in the approved budget, the overall percentage spent would be 109% instead of 89% as 
reflected in the Appropriation Statement. 


265 I P a g e 



270 


5.8 SOURCES OF FINANCE 


Details 

2012/2013 

2013/2014 

Actual 

Original Budget (OB) 

Adjustment 

Budget 

Actual 

Adjustment 
to OB 

Variance 

{%) 

Actual to AB 
Variance {%) 

Source of finance 









External loans 

0 

1 000 000 

1 500 000 

1 500 000 

50.00% 

0.00% 


Public contributions 

and donations 

3 356 

0 

0 

0 




Grants and 
subsidies 

1 550 197 

3 183 432 

2 557 281 

2 041 010 

-19.67% 

-20.19% 


Other 

1 909 223 

1 283 335 

687 371 

660 612 

-46.44% 

-3.89% 

Total 


3 462 776 

5 466 767 

4 744 652 

4 201 662 

-13.21% 

-11.44% 

Percentage of finance 









External loans 

0.0% 

18.3% 

31.6% 

35.7% 

72.68% 

12.97% 


Public contributions 
and donations 

0.1% 

0.0% 

0.0% 

0.0% 




Grants and 
subsidies 

44.8% 

58.2% 

53.9% 

48.6% 

-7.39% 

-9.83% 


Other 

55.1% 

23.5% 

14.5% 

15.7% 

-38.3% 

8.28% 

Capital expenditure 









Water and 
sanitation 

783 991 

1 597 630 

1 653 598 

1 805 560 

3.5% 

9.19% 


Electricity 

606 097 

568 798 

570 498 

526 070 

0.30% 

-7.79% 


Housing 

163 125 

789 306 

275 605 

64 684 

-65.08% 

-76.53% 


Roads and storm 

water 

806 406 

1 797 874 

1 359 442 

1 268 279 

-24.39% 

-6.71% 


Other 

1 103 157 

713 159 

885 508 

537 029 

24.17% 

-39.35% 


266 I P a g e 


Total 


3 462 776 

5 466 767 ^ 

4 744 652 

4 201 662 

-13.21% 

-11.44% 

Percentage of 
expenditure 









Water and 

sanitation 

22.6% 

29.2% 

34.9% 

42.9% 

19.52% 

22.92% 


Electricity 

17.5% 

10.4% 

12.0% 

12.5% 

15.38% 

4.17% 


Housing 

4.7% 

14.4% 

5.8% 

1.5% 

-59.72% 

-74.14% 


Roads and storm 

water 

23.3% 

32.9% 

28.7% 

30.3% 

-12.77% 

5.57% 


Other 

31.9% 

13.1% 

18.6% 

12.8% 

41.98% 

-31.18% 










45.7% of funding for capital is from grants & subsidies 

35.8% of funding for capital is from external loans 

18.4% of funding for capital is from internally generated funds 


Capital Expenditure on five largest projects* 

R' 000 

Name of Project 

Current Year 

Variance Current Year 

Original Budget 

Adjustment Budget 

Actual Expenditure 

Original Variance 
{%) 

Adjustment 
variance (%) 

A P3965 

321 193 

294 950 

397 118 

24% 

35% 

B Y6525 

233 000 

251 198 

555 737 

139% 

121% 

C Y6973 

50 000 

94 600 

113 640 

127% 

20% 

D X4764 

190 000 

126 587 

138 648 

-27% 

10% 

E X4625 

244 000 

292 896 

195 880 

-20% 

-33% 

* Projects with the highest capital expenditure in 2013/14 








Name of Project - A 

ROAD REHABILITATION 


267 I P a g e 





Objective of Project 

To preserve and mairft^ifr the road infrastructure at an acceptable level of service, such that the overall 
Visual Conditional Index (VCI) for all the roads in the Municipality is maintained at a value of 70% or greater. 
This is in line with the objectives of the Municipality's road management system as known as (roads) which 
includes that all roads under municipal management are provided and maintained in a condition 
acceptable to the travelling public and at minimum life cycle cost. 

Delays 

Delays relating to limited and at times no supply of asphalt were experienced. Community interference 
resulted into work stoppages. The period of September and to November had excessive rainfall impeding 
rate of construction progress. 

Future Challenges 

The experience indicates that following challenges can be anticipated: (1) Community interference and 
stoppages (2) availability of special material e.g. bitumen (3) unpredictable inclement weather and (4) 
labour unrest and potential strikes. 

Anticipated citizen benefits 

Roads rehabilitated in accordance with an optimized programme will result in improved community access 
at lower cost to the general rate payer. Rehabilitated roads also improve user safety, improves image for 
the Municipality and the surrounding suburbs where the projects are located and also has an indirect 
economic benefit due to reduction of user cost and improved riding quality and access. 



Name of Project - B 

ABLUTION BLOCKS IN SITU UPGRADE 

Objective of Project 

To provide sanitation to informal settlements and eradicate sanitation backlogs 

Delays 

Environmental, land and Community issues 

Future Challenges 

Environmental, land and Community issues 

Anticipated citizen benefits 

Improved quality of life for those living in the informal settlements and a reduction in the associated health 
risks 



Name of Project - C 

KWA MASHUA WWTW 

Objective of Project 

To increase the Works sludge treatment capacity 

Delays 

Record of Decision received three months late from DAEA 

Future Challenges 

New plant required in the future to increase treatment capacity 


268 I P a g e 




Anticipated citizen benefits 

Safe treatment of sev^^and reduced pollution 

Improved quality of life for those living in the informal settlements and a reduction in the associated health 
risks 



Name of Project - D 

NORTHERN AQUEDUCT 

Objective of Project 

To provide water to the Northern Areas 

Delays 

Water Use License and Ward 58 community problems 

Future Challenges 

Water Use License and Ward 58 community problems 

Anticipated citizen benefits 

Potable water supply 



Name of Project - E 

WATER FLAGSHIP PROJECT - WESTERN AQUEDUCT 

Objective of Project 

To provide water to the Western and Northern Areas 

Delays 

Appeals on tenders and court action 

Future Challenges 

Water Use License requirements of DWAF and EIA delays 

Anticipated citizen benefits 

Potable water supply 


COMMENT 

The focus of capital expenditure is linked to asset management .A substantial part of the capital budget is allocated to the rehabilitation of existing infrastructure. This in turn 
ensures enhanced service delivery and results in the extension in the useful life of the asset. 


269 I P a g e 




274 


5.9 BASIC SERVICE AND INFRASTRUCTURE BACKLOGS - OVERVIEW 


Urban Settlement Development Grant (USDG)* Expenditure 2013/2014 on Service backlogs 

R' 000 

Details 

Budget 

Adjustments 

Budget 

Actual 

Variance 

Major conditions applied by donor (continue 
below if necessary) 

Budget 

Adjustments 

Budget 

Infrastructure - Road transport 




% 

% 


Roads, Pavements & Bridges 

40 000 

25 551 

49 649 

24% 

94% 


Storm water 

50 000 

91 177 

66 269 

33% 

-27% 


Infrastructure - Electricity 







Generation 







Transmission & Reticulation 

247 470 

217 450 

141 319 

-43% 

-35% 


Street Lighting 







Infrastructure - Water 







Dams & Reservoirs 

55 700 

15 186 

1 181 

-98% 

-92% 


Water purification 







Reticulation 

265 173 

395 886 

379 883 

43% 

-4% 


Infrastructure - Sanitation 







Reticulation 

592 752 

487 120 

689 215 

16% 

41% 



270 I P a g e 




Sewerage purification 

3 000 

3 600 

3 600 ^ 

^2b% 

0% 


Infrastructure - Other 







Waste Management 

0 

0 

0 




Transportation 







Gas 







Other Specify: 







Other units - Various 

326 904 

345 029 

249 883 

-24% 

-28% 
















Total 

1 580 999 

1 580 999 

1 580 999 

0% 

0% 


* USDG is a government grant programme designed to fund a reduction in service backlogs, mainly: Water; Sanitation; Roads; Electricity. Expenditure on new, upgraded 
and renewed infrastructure is set out in Appendix M; note also the calculation of the variation. Variances are calculated by dividing the difference between actual and 
original/adjustments budget by the original/adjustments budget. 

Comment: 

USDG funding was spent to the extent 100% consistent with the prior year. 


271 I P a g e 




5.10CASH FLOW MANAGEMENT AND INVESTMENTS 


276 


Cash Flow Outcomes 


R'OOO 




Description 

Current year 2012/2013 


Current year 2013/2014 


Original Budget 

Adjusted Budget 

Actual 

Original Budget 

Adjusted Budget 

Actual 

CASH FLOW FROM OPERATING ACTIVITIES 

Receipts 

Ratepayers and other 

20 617 228 

20 683 182 

18 828 491 

21702 892 

23 355 070 

19 216 420 

Government - operating 

2 126 964 

2 266 351 

2 140 176 

2 359 637 

2 447 577 

2 322 027 

Government - capital 

2 831077 

2 886 944 

2 809 306 

3 183 431 

3 581313 

3 103 857 

Interest 

239 754 

339 409 

416 683 

478 095 

577 892 

477 911 

Dividends 

Payments 

Suppliers and employees 

(19 453 074) 

(20 475 497) 

(19 019 386) 

(20 805 321) 

(23 205 539) 

(19 031338) 

Finance charges 

(1 247 576) 

(868 063) 

(942 081) 

(1 168 515) 

(1 191860) 

(857 206) 

Transfers and Grants 

(174 319) 

(183 945) 

(17 266) 

(203 713) 

(202 213) 

(189 834) 

NET CASH FROM/(USED) OPERATING ACTIVITIES 

4 940 054 

4 648 381 

4 215 923 

5 546 506 

5 362 240 

5 041 837 

CASH FLOWS FROM INVESTING ACTIVITIES 

Receipts 

Proceeds on disposal of PPE 

32 021 

32 021 

24 808 

34 231 

34 281 

34 768 

Decrease (Increase) in non-current debtors 

5 718 

(32 000) 


(5 840) 

(5 956) 

- 


272 I P a g e 


Decrease (increase) other non-current receivables 

(49 172) 

/51392 

(22 124) 



65 832 

Decrease (increase) in non-current investments 

- 

(32 741) 


(30 597) 

(32 465) 


Payments 







Capital assets 

(5 308 715) 

(5 316 481) 

(2 900 368) 

(4 923 552) 

(5 218 366) 

(4 212 016) 

NET CASH FROM/(USED) INVESTING ACTIVITIES 

(5 320 148) 

(5 297 809) 

(2 897 684) 

(4 925 758) 

(5 222 506) 

(4 111416) 

CASH FLOWS FROM FINANCING ACTIVITIES 







Receipts 







Short-term loans 







Borrowing long term/refinancing 

1 500 000 

750 000 

8 205 

1 000 000 

1 000 000 

1 509 589 

Increase (decrease) in consumer deposits 

30 790 

30 790 


55 907 

58 702 

- 

Payments 







Repayment of borrowing 

(826 314) 

(826 314) 

(792 218) 

(1 157 779) 

(1021977) 

(1 140 027) 

NET CASH FROM / (USED) FINANCING ACTIVITIES 

704 476 

(45 524) 

(784 013) 

(101 872) 

36 725 

369 562 

NET INCREASE / (DECREASE) IN CASH HELD 

324 382 

(694 952) 

534 226 

518 876 

176 459 

1 299 983 

Cash/cash equivalents at the year begin: 

3 726 917 

3 726 917 

5 025 483 

4 786 847 

5 642 085 

5 559 709 

Cash/cash equivalents at the year end: 

4 051 299 

3 031 965 

5 559 709 

5 305 723 

5 818 544 

6 859 692 

Source: Table A7MTREF 






T5.9.1 


Cash and cash equivalents at year end has increased from the previous year. This is mainly attributable to higher revenue and unspent conditional grants that have been 
rolled over to 2014-15 financial year. 

The number of days cash on hand improved in 2014 from 2013( i.e. 2014- 109 days, 2013- 99 days). The increase in cash will come handy in difficult times, more so as the 
economy's growth prospects are limited. 


273 I P a g e 


278 


5.11B0RR0WING AND INVESTMENTS 
Introduction 
Borrowings 

Borrowings were undertaken in the current financial year. 


Financial Institution 

Loan Amount 

R m 

Fixed Interest Rate 

% 

Duration 

in Years 

DBS A 

1 500 000 000 

9.85% 

15 


The Gearing Ratio (Total Debt: Total Income), a good indicator of the ratio of loans to revenue generated for 
the current and forecast for the next financial years is as follows: 


2013/2014 

2014/2015 

2015/2016 

% 

% 

% 

39% 

35% 

32% 


INVESTMENTS 

2012/13 

2013/14 


30-Jun-13 

30-Jun-14 

% 

% 

Average rate of return on investments 

5.52 

5.99 


274 I P a g e 















279 


BORROWINGS 


Actual Borrowings 2011/12-2013/14 

R' 000 

Instrument 

2011/2012 

2012/2013 

2013/2014 


R'OOO 

R'OOO 

R'OOO 

Municipality 

Long-term loans (annuity / 
reducing balance) 

10 785 825 

9 999 820 

10 369 382 

Long-term loans (non-annuity) 


0 

0 

Local registered stock 

200 

200 

200 

TOTAL 

10 786 025 

10 000 020 

10 369 582 






Borrowings 


10,786,025 


2012 


10,000,020 


2013 


10,369,582 


2014 


Financial Year 

Borrowings 

2012 

10 786 025 

2013 

10 000 020 

2014 

10 369 582 


275 I P a g e 



280 


INVESTMENTS 


Municipal Investments 

R' 000 

Investment* type 

2011/2012 

2012/2013 

2013/2014 

Actual 

Actual 

Actual 

Municipality 

Deposits - Bank 

5 025 483 

5 559 709 

6 859 692 

Sinking Fund 

0 

0 

0 

TOTAL 

5 025 483 

5 559 709 

6 859 692 






8000 

7000 

6000 

5000 

4000 

3000 

2000 

1000 

0 


Investments 




6860 



5560 




5025 





















2012 


2013 


2014 


Financial Year 

Investments(R'M) 

2012 

5025 

2013 

5560 

2014 

6860 


276 I P a g e 



281 


COMMENT ON BORROWING AND INVESTMENTS 
Borrowings 

The municipality in order to fulfill its service delivery mandate will have to borrow Rl, 0 billion in the 
2014/2015 financial year with a duration of 15 years to fund its capital program. South Africa is not 
immune to European Zone economic slowdown and accordingly its GDP forecast has also been revised 
downwards. 

The global and South African economy has changed drastically to what it was six years ago. Previously 
the Municipality could borrow long term loans for 15 years with the spread of 40 to 60 basis points 
over the swap curve. With the volatility in global markets, since the 2008 financial crisis, the spread 
for the same 15 years long term loan has increased to between 120 to 190 basis points. In these 
difficult economic times it will still be in the best interest of the municipality to take advantage of the 
"vanilla loans" from Financial Institutions. 

Investments 

Challenging Economic Times 

The South African economic recovery remains subdued.The economy is expected to grow at 1.5% in 
2014 and inflation is expected to remain within the 3% - 6% target band over the medium term. In the 
prevailing turbulent financial markets, it is likely that the Monetary Policy Committee will increase 
the repo rate in 2015 by 50 basis points in Q1 and Q2. Consequently, the interest earned by the 
eThekwini Municipality for 2015 financial year will approximate R 350 million. 

5.12 SUPPLY CHAIN MANAGEMENT 

Substantial progress made on proactively dealing with the reduction in irregular expenditure through 
screening all companies prior to registration onto the database and audit control checklist for reports 
coming to BEC & BAC. 

Numbers of interventions, including the following, were implemented during the year in order to 
reduce the irregular expenditure: All tenderers were requested to submit signed declaration of 
interest forms. Payments vouchers were reviewed before processing for compliance with SCM. 
Conflict of interest task team was set up to review conflict of interest cases being identified and 
recommend corrective actions. MFMA circular on extension of contracts was communicated to all 
departments to ensure compliance. SCM policy was reviewed and also updated with latest MFMA 
circulars. 

Policy amendments drafted and approved in keeping with the New Preferential Procurement 
Regulations, which came into effect on 7 December 2011. Also commenced with a project to roll-out 
of B-BBEE throughout the Municipality. 

Commenced with an ISO 9001 project within SCM, which will include templates required during the 
SCM and Contract Management process. Other improvement projects include the adoption of 
Category Management as a process, address book consolidation to form a single central supplier 
database, and an electronic quotes management system (QMS) to improve the handling of quotations 
across the Municipality. 


277 I P a g e 



282 


Intergovernmental relationships - fostered good working relationships with SALGA and other 
Metropolitan Municipalities to improve the pace of SCM implementation through knowledge sharing, 
etc. 

5.13 GRAP COMPLIANCE 

GRAP is the acronym for Generally Recognised Accounting Practice and it provides the rules by which 

municipalities are required to maintain their financial accounts. Successful GRAP compliance will 
ensure that municipal accounts are comparable and more informative for the municipality. It will also 
ensure that the municipality is more accountable to its citizens and other stakeholders. Information 
on GRAP compliance is needed to enable National Treasury to assess the pace of progress and consider 
the implications. 

The Municipality is fully GRAP compliant. The current year accounting framework is consistent with 
the previous year. 

The requirements as per the Accounting Standards Board will be the improved Standards of GRAP & 
IGRAPS. IGRAP is the acronym for Improved Generally Recognised Accounting Practice. 

The purpose of improvements is to clarify matters in the existing standards and to ensure consistency 
between all GRAP standards. The Municipality has early adopted Standards of GRAP that have been 
approved but for which the Minister of Finance has not yet determined an effective date. 


278 I P a g e 



283 


CHAPTER 6: 

6.1 Auditor - General Report 2013/14 

6.2 Management Responses 2013/2014 


279 I P a g e 



284 


REPORT OF THE AUDITOR-GENERAL TO THE KWAZULU-NATAL PROVINCIAL 
LEGISLATURE AND THE COUNCIL ON ETHEKWINI MUNICIPALITY 

REPORT ON THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS 


Introduction 


1 . I have audited the consolidated and separate financial statements of the eThekwini Municipality 
and its subsidiaries set out on pages 347 to 452, which comprise the consolidated and separate 
statement of financial position as at 30 June 2014, the consolidated and separate statement of 
financial performance, statement of changes in net assets, the cash flow statement and the 
statement of comparison of budget information with actual information for the year then ended, 
as well as the notes, comprising a summary of significant accounting policies and other 
explanatory information. 


Accounting officer's responsibility for the consolidated and separate financial statements 


2. The accounting officer is responsible for the preparation and fair presentation of these 
consolidated and separate financial statements in accordance with the South African Standards 
of Generally Recognised Accounting Practice (SA Standards of GRAP) and the requirements of the 
Local Government: Municipal Finance Management Act of South Africa, 2003 (Act No. 56 of 2003) 
(MFMA) and the Division of Revenue Act of South Africa, 2013 (Act No. 2 of 2013) (DoRA), and for 
such internal control as the accounting officer determines is necessary to enable the preparation 
of consolidated and separate financial statements that are free from material misstatement, 
whether due to fraud or error. 


Auditor-general's responsibility 


3. My responsibility is to express an opinion on these consolidated and separate financial 
statements based on my audit. I conducted my audit in accordance with the Public Audit Act of 
South Africa, 2004 (Act No. 25 of 2004) (PAA), the general notice issued in terms thereof and 
International Standards on Auditing. Those standards require that I comply with ethical 
requirements, and plan and perform the audit to obtain reasonable assurance about whether the 
consolidated and separate financial statements are free from material misstatement. 

4. An audit involves performing procedures to obtain audit evidence about the amounts and 
disclosures in the consolidated and separate financial statements. The procedures selected 
depend on the auditor's judgement, including the assessment of the risks of material 
misstatement of the consolidated and separate financial statements, whether due to fraud or 
error. In making those risk assessments, the auditor considers internal control relevant to the 
municipality's preparation and fair presentation of the consolidated and separate financial 
statements in order to design audit procedures that are appropriate in the circumstances, but 
not for the purpose of expressing an opinion on the effectiveness of the municipality's internal 
control. An audit also includes evaluating the appropriateness of accounting policies used and 
the reasonableness of accounting estimates made by management, as well as evaluating the 
overall presentation of the consolidated and separate financial statements. 


280 I P a g e 



285 


5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis 
for my audit opinion. 


Opinion 

6. In my opinion, the consolidated and separate financial statements present fairly, in all material 
respects, the financial position of the eThekwini Municipality and its subsidiaries as at 
30 June 2014 and its financial performance and cash flows for the year then ended, in accordance 
with the SA Standards of GRAP and the requirements of the MFMA and DoRA. 


Emphasis of matters 


7. I draw attention to the matters below. My opinion is not modified in respect of these matters. 


Significant uncertainties 

8. As disclosed in note 39 to the financial statements, various legal claims amounting to 

R904, 89 million had been lodged against the municipality. The ultimate outcome of these 
matters cannot presently be determined and no provision for any liability that may result had 
been made in the financial statements. 

Material losses and impairments 


9. As disclosed in note 45 to the financial statements, the municipality has incurred material water 
losses amounting to R602, 6 million (131 021 634 kl). 

10. As disclosed in note 6 to the financial statements, the municipality had raised a provision for bad 
debt impairments of R2, 01 billion (2013: Rl, 99 billion) on consumer debts as the recoverability 
of these amounts were doubtful. 


Material underspending of conditional grant and capital budget 


11 . As disclosed in note 28 to the financial statements, the municipality had materially underspent on 
conditional grants received from the National Department of Transport by R819, 69 million in 
respect of the integrated rapid public transport network (IRPTN). 

12. With reference to note 50 to the financial statements, the municipality had underspent on its 
capital budget by R505, 36 million, as a result of delays experienced in Go Durban Projects and a 
delay in the implementation of IRPTN grant funded projects. 

Additional matters 


13. I draw attention to the matters below. My opinion is not modified in respect of these matters. 


281 I P a g e 



286 


Unaudited supplementary schedules 


14. The supplementary information set out on pages 454 to 460 does not form part of the financial 
statements and is presented as additional information. I have not audited these schedules and, 
accordingly, I do not express an opinion thereon. 

Unaudited disclosure notes 


15. In terms of section 125 (2) (e) of the MFMA the municipality is required to disclose particulars of 
non-compliance with the MFMA. This disclosure requirement did not form part of the audit of the 
financial statements and accordingly, I do not express an opinion thereon. 


REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS 

16. In accordance with the PAA and the general notice issued in terms thereof, I report the following 
findings on the reported performance information against predetermined objectives for selected 
objectives presented in the annual performance report, non-compliance with legislation as well 
as internal control. The objective of my tests was to identify reportable findings as described 
under each subheading but not to gather evidence to express assurance on these matters. 
Accordingly, I do not express an opinion or conclusion on these matters. 


Predetermined objectives 


17. I performed procedures to obtain evidence about the usefulness and reliability of the reported 
performance information for the following selected objectives presented in the annual 
performance report of the municipality for the year ended 30 June 2014: 

• Plan 3 : Creating a quality living environment on pages 44 to 60 

• Plan 8 : Financially accountable and sustainable city on pages 99 to 105 

18. I evaluated the reported performance information against the overall criteria of usefulness and 
reliability. 

1 9. I evaluated the usefulness of the reported performance information to determine whether it was 
presented in accordance with the National Treasury's annual reporting principles and whether 
the reported performance was consistent with the planned objectives. I further performed tests 
to determine whether indicators and targets were well defined, verifiable, specific, measurable, 
time bound and relevant, as required by the National Treasury's Framework for managing 
programme performance information. 

20. I assessed the reliability of the reported performance information to determine whether it was 
valid, accurate and complete. 

21 . I did not raise any material findings on the usefulness and reliability of the reported performance 
information for the selected objectives. 


282 I P a g e 



287 


Additional matters 


22. Although I did not raise material findings on the usefulness and reliability of the reported 
performance information for the selected objectives , I draw attention to the following matters: 

Achievement of planned targets 


23. Refer to the annual performance report on pages 31 to 105 for information on the achievement 
of the planned targets for the year. 

Unaudited supplementary information 


24. The supplementary information set out on pages 106 to 229 does not form part of the annual 
performance report and is presented as additional information. I have not audited these 
schedules and, accordingly, I do not report thereon. 

Compliance with legislation 


25. I performed procedures to obtain evidence that the municipality had complied with applicable 
legislation regarding financial matters, financial management and other related matters. My 
findings on material non-compliance with specific matters in key legislation, as set out in the 
general notice issued in terms of the PAA, are as follows: 

Procurement and contract management 


26. Goods and services of a transaction value above R200 000 were procured without inviting 
competitive bids, as required by regulation 19(a) of the Supply Chain Management (SCM) 
regulations. Deviations were approved by the accounting officer even though it was not 
impractical to invite competitive bids, in contravention of SCM regulation 36(1). 


Budgets 


27. The total unforeseen and unavoidable expenditure incurred exceeded R15 million, which was in 
contravention of the municipal budget and reporting regulation 72. 


Annual financial statements 


28. The financial statements submitted for auditing were not prepared, in all material respects, in 
accordance with the requirements of section 122 of the MFMA. Control deficiencies resulted in 
material misstatements of capital commitments, irregular expenditure and the retirement 
benefit obligation provision that were identified by the auditors and were subsequently corrected, 
resulting in the financial statements receiving an unqualified audit opinion. 


283 I P a g e 



288 


Internal control 

29. I considered internal control relevant to my audit of the financial statements, annual 
performance report and compliance with legislation. The matters reported below are limited to 
the significant internal control deficiencies that resulted in the findings on compliance with 
legislation included in this report. 

Financial management 

30. Inadequate monitoring and oversight of controls relating to contract management, budgets and 
planning have resulted in the municipality deviating from the normal tender process and 
incurring expenditure in excess of prescribed amounts. 

31. There were inadequate processes and monitoring controls over financial transactions and 
disclosure relating to commitments, and the retirement benefit obligation provision. This has 
resulted in the correction of material misstatements that were identified during the audit. 

OTHER REPORTS 

Investigations 

32. Fifty internal investigations relating to alleged procurement fraud, financial misconduct and 
SCM in respect of council employees were finalised during the year. 

33. Three hundred and three internal investigations relating to alleged procurement fraud, SCM 
compliance and financial misconduct by council employees were still in progress at year-end. 



Pietermaritzburg 
15 December 2014 



AUDITOR-GENERAL 


SOUTH AFRICA 


Auditing to build public confidence 


289 


MANAGEMENT RESPONSES TO 2013-14 AUDIT REPORT AS REQUIRED BY SECTION 121(31 (g) OF THE 
MFMA 

EMPHASIS OF MATTER 


1. SIGNIFICANT UNCERTAINTY 

1.1 Legal claims 

Various legal claims amounting to R904,89 million had been lodged against the municipality. 
These legal claims have been disclosed as contingent liabilities in note 39, in the Annual Financial 
Statements because the ultimate outcome of these matters cannot presently be determined. 
The amount of R904,89 million is the value being claimed by the other parties and is therefore 
considered to be prudent. 

2. MATERIAL LOSSES AND IMPAIRMENTS 

2.1 Water loss 

The Non-Revenue Water (NRW) Branch is responsible for monitoring the NRW situation at 
eThekwini Water and Sanitation (EWS) and reporting thereon, providing strategic direction for 
the Unit to reduce losses as well as implementing a number of programmes to reduce losses on 
a wide scale. The primary objective of the NRW reduction activities is to reduce the NRW levels 
to a targeted and sustained value of 25% by volume (420 litres/connection/day total water 
losses) by June 2019. 

Water losses of 131 021 634 kl (2012/2013: 119 966 557 kl) occurred during the year under 
review, which resulted in revenue losses to the municipality. The estimated water losses 
amounting to R602.6m (2012/2013: R513m) were due mainly to illegal connections and 
deteriorating infrastructure. The non-revenue water volume increased from 37.3% in 2012/13 
to 39.4% in 2013/14. Based on a Water Research Commission Report TT512/12, (using 2010 
data), the current South African NRW average is 36.8% whilst the African average is 38.0%. 

An estimated deemed authorized consumption of 31 369 kl/day is being consumed in the 
informal settlements in the eThekwini Municipality and a programme is underway to meter and 
monitor this consumption. The municipality is compensated for this water consumption via the 
Equitable Share. If this volume had been included in the 2013/14 financial year, the reported 
NRW% would be 35.9% and the water losses would be 119 571 949kl. 

In terms of MFMA circular 71 the norm for water losses is between 15% and 30%. The 
Municipality's losses are 9.4% above this norm and this equates to approximately R141.3m. 
However, if the estimated consumption by informal settlements as indicated above is taken into 
account, the losses in excess of the norm would reduce to 5.9% which equates to approximately 
R89.8m. 

In line with the current NRW Business Plan, EWS is implementing a number of water loss 
interventions, the highlights of which for 2013/14 are as follows: 

• During the year 64 Pressure Reducing Valves were installed and 120 installations are 
planned to be done in the 2014/15 year. 

• The Leak Detection and Repair Strategy with a total of 16 Category B plumbers in formal 
and informal areas has proved extremely successful and a total of 15 567 leaks were 
repaired from the 6 716 km of reticulation that were surveyed for leaks. 

• A total of 4 242 connections were regularized and registered in COINS from the sweeps 
being conducted Metro-wide in old eThekwini Housing projects. 


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• In terms of the programme for meter replacement for domestic consumers which are 
more than 20 years old a total of 5 978 out of a target of 9 000 has been achieved. This 
programme was hampered by delays in the meter supply contract as well as plumbing 
resources. 955 ICI (Industrial, Commercial and Institutional) consumer meters older than 
20 years were replaced. In January 2014, a decision was taken to meter all the unmetered 
sprinkler and fire connections and a contract to commence with this work has recently 
commenced. 

• The total number of registered connections increased by 10 421 (2.2%) but the consumer 
sales marginally increased by 906 kl/day. The stagnant sales volume is highlighted as a 
major concern for the Unit and several programmes are being conducted to address this. 
There are now a total of 488 270 registered connections in eThekwini. 

• The success of the NRW programme has been hampered in the 2013/14 financial year due 
to the non-availability of materials and resources but has started to regain the momentum 
lost in the previous years. System attrition is estimated to be 2.1% and this is masking the 
results of the positive achievements. The compliance of the consumers as well as the large 
population migration to peri-urban areas is also highlighted as a concern. A significant 
increase in budget and planned work will be required as per the NRW 2013 Business Plan 
in order to achieve the stated target of 25% NRW by volume by June 2019. 

2.2 Provision for doubtful debts 

The basis of calculation of the doubtful debt provision is consistent with the previous. The major 
portion of the provision is for residential properties in the Ingonyama Trust area and properties 
valued less than R250 000 that qualify for debt relief programme for water. The debt will be 
pursued until it is not feasible to recover and thereafter will be written off. 


3 MATERIAL UNDERSPENDING OF CONDITIONAL GRANT AND CAPITAL BUDGET 
3. 1 Unspen t gran ts 

R820 million of the Department of Transport and Public Transport Infrastructure grant was 
unspent at the year ended 30 June 2014. 

Reasons for underspending: 

The approach by the City to design a comprehensive IRPTN as its public transport solution, 
combined with packaging more than one corridor in each phase of the implementation program 
has proven to be a double-edged sword. While it has enabled the City to: 

• Articulate a comprehensive solution, addressing all the different parts of the City, 

• Determine the level of investment required implement the solution, and possible funding 
shortfalls 

• Create a platform for engaging with different stakeholders and role players, from 
communities, to public transport operators, business community, developers, labor 
organizations, etc. 

• Estimate overall operational costs and possible funding requirements. 

• Promote joint and integrated planning between different city units, and alignment of 
different funding streams 

• Align project delivery with other public entities and government departments to 
accelerate speed of implementation, and generate cost savings: 

> SANRAL:- Cornubia Blvd /N2 Overpass + link to M41/N2 - integration with 
corridor C9 (Bridge City to Umhianga) 


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> KZNDOT Upgrade of the R102/M41 interchange - integration with corridor C9 
and 

> PRASA for the construction of the Bridge City terminal. 

• Re -organise public transport operations throughout the City in advance of infrastructure 
rollout. 

On the downside, it has required the City to spend more time on planning and project 
preparation activities; and has led to under-spending on previous grant allocations. All the 
preparation is now done, all the regulatory processes (environmental impact assessment, water 
use licence, permission to occupy/land acquisition, etc.) cleared, and contractors are now on 
site busy on the construction of C3 (Bridge City to Pinetown). 

Whereas the City has historically performed well in implementation of grant funded projects, 
the performance in the last two years in the implementation of the IRPTN has been slower than 
planned. This has led to under spending on the Public Transport Infrastructure Grant. The 
reasons for the slower than expected performance over and above those stated above can be 
summarised as follows:- 

• Continuing delays in the finalisation of the site allocation for the Transport 
Management Centre (TMC) which has delayed progress and spending on the TMC. 
This issue has finally been resolved and tenders for the design and construction of the 
TMC will be advertised in the 3'^'' quarter of 2014/15 financial year, with construction 
expected to start in the 2015/16 financial year. The 2016 operations will be serviced 
by the existing TMC which has been upgraded for this purpose. 

• Delays in the procurement process to appoint the professional teams for detailed 
design for C3 and Cl in the 12/13 financial year meant that construction could not 
start as early as planned. All professional teams have now been appointed and are 
performing to schedule. 

• Delays in the appointment of construction contractors for C3. All contractors, except 
two, have been appointed and construction on C3 is well underway. 

• Some delays have been incurred in finalising the procurement of the ROW 
construction. Depot and Terminal station due to internal funding discussions between 
the Transport Authority and Finance. 

Remedial actions: 

Remedial actions, which have been taken to minimise the effect of these delays include the 
following:- 

• Going out to tender for construction contracts based on preliminary design, and not 
waiting for the completion of detailed design. 

• Making use of Section 32 of the Supply Chain Management Regulation to access existing 
contracts from other government departments or public entities i.e SANRAL, PRASA and 
KZN DOT. 

• Detailed Design is taking place at the same time with Construction to reduce delays 

• The C3 corridor (Bridge City to Pinetown) has been broken up into 9 contracts to spread 
the work and fast track construction. 


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292 


3.2 Unspent capital budget 


Although the municipality achieved 109% overall capital spent (including housing top structure) 
as per note 50 of the financial statements, there was under-spending on other areas mainly due 
to the following: 

• Delay in implementation of IRPTN grant funded projects as a number of projects were in 
the planning phase. Refer to 4 above for details. 

• Under-expenditure on a New Durban Central City Library is due to the non-award of the 
professional services tenders. Further, an appeal against the non-award was lodged 
following the notification thereof which only permitted the re-tendering process in 
September 2014. 

Initiatives in place to ensure that Capital Spending is 100% of the budget include the following: 

• Departments were requested to prepare Procurement Plans, to ensure that delays as a 
result of SCM challenges are minimized. 

• These Procurement plans are being monitored weekly, by SCM and are reported to the 
City Manager. In addition, the Capital Expenditure is also being monitored weekly by the 
City Manager. Where challenges are noted during monitoring; proposed solutions are 
discussed in the meeting, and implemented thereof. 

• During the year the Departments are requested to identify projects where there are 
savings in order to ensure that they source projects that need funding. 

• Council also monitors the Capital spend through EXCO and Finance and Procurement 
Committee meetings that take place monthly, through MFMA Section 71 reporting. 

• The monitoring will continue to ensure the 100% spend on Capital budget. 


4 REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS 
4.1 Procurement and contract management 

Council revised its supply chain management (SCM) policy with respect to section 36 in 2013 in 
order to improve the controls. In terms of the new policy, the term "emergency" is now clearly 
defined and in addition, the process that is followed in approving section 36 reports has also 
been improved to eliminate abuse. Although SCM Regulation 36 only requires approval by the 
accounting officer, our policy requires that the report should be considered by the BAC before 
it can go to the Accounting officer. 

Furthermore, to ensure that we comply with the SCM principles as per Section 217 of the 
Constitution i.e. fair, equitable, transparent, competitive and cost-effective, in most cases, the 
request for quotation process is followed which involves advertising for 7 days etc. 

The municipality will continue to monitor the use of section 36 and the implementation of 
procurement plans with respect to demand management. 


4.2 Budgets 

Capital Expenditure is being monitored weekly at a Top 150 projects meeting chaired by the City 
Manager and it is also reported through MFMA section 71 reports. Where challenges are noted 
during monitoring; proposed solutions are discussed in the meeting, and implemented thereof. 
Flowever, in future the unforeseen and unavoidable expenditure will be reported at the first 


288 I P a g e 




293 


4.3 ANNUAL FINANCIAL STATEMENTS 

4.3.1 Material misstatements of capital commitments 

Information required on commitments will be automated via the amendments to the design of 
JDE Reports. In addition, an independent verification of contract information will be carried out 
to ensure that the information is captured accurately. 

Furthermore, the format of working papers will be enhanced to reflect detail cross references 
to the BAC reports and contracts. 

4.3.2 Irregular expenditure 

There are various interventions that have been introduced to deal with irregular expenditure. 
These interventions included the following: 

• Central Contract Register; 

• Additional payment control procedures at Accounts Payable Section to ensure that 
payments above R200k are only processed for transactions whose contracts appear on 
the Central Contracts Register; 

• Preparation of monthly expenditure certificates for reporting any irregular, fruitless and 
wasteful expenditure; 

• Referring of all cases where there is any abuse of SCM processes by suppliers or 
contractors to the Blacklisting Committee for blacklisting of entities; 

• Referring any irregular, fruitless and wasteful expenditure cases to Internal Audit and to 
City Integrity and Investigations Unit for further investigations and where necessary, 
disciplinary procedures are instituted; 

• Embarking on ISO 9001 accreditation for all SCM processes; 

• Preparation of Procurement Plans within the municipality and weekly monitoring of Top 
150 budget drivers; and 

• Annual review of SCM policy to ensure compliance with all legislative requirements. 

The abovementioned initiatives should undoubtedly result in the substantial reduction of 
irregular expenditure across the Municipality. 

4.3.3 Retirement benefit obligation provision 

The retirement data will be reviewed and validated before the amounts to be included in the 
financial statements are finalized. In addition, clear parameters and information source will be 
set for the valuation of the Retirement benefit obligation in the appointment of the actuary 

5 FINANCIAL MANAGEMENT 

Processes, policies and monitoring over financial transactions do exist. However, these will be 
enhanced in accordance with the recommendations by the Auditor-General. 


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APPENDICES 


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296 


APPENDIX A 

Ward and PR Councillors 


No. 

Surname 

First Name 

Telephone 

(Cell) 

E-Mail Address 

Ward 

No. 

Gende 

r 

Party 

1 

Abraham 

Michael 

(c) 072 629 

4384 

Michael. Abraham @durban.gov.za 

61 

M 

ANC 

2 

Adam 

Mahomed Faruk 

(c) 083 577 

8648 

AdamMF@durban.gov.za 


M 

PR-TA 

3 

Arunajallam 

Chellappen 

(c) 082 302 

1925 

Chellappen. ArunajallamC@durban.gov.za 
/ chocks@telkomsa.net 

60 

M 

ANC 

4 

Asbury 

Shontel Veronica 

(c) 072 761 

8759 

Asburv SV@durban.gov.za / 
shontel.asburv751@gmail.com 


F 

PR-DA 

5 

Bayeni 

Mduduzi Enock 

(c) 082 719 

3999 

MduduziEnock.Bayeni@durban.gov.za 

99 

M 

ANC 

6 

Beetge 

Andre 

(c) 082 718 

8137 

BeetgeAndre@durban.gov.za / 
andreb@skvtec.co.za 

97 

M 

DA 

7 

Bhanprakash 

Satishrai 

(c) 082 771 

1129 

BhanprakashSatishrai@durban.gov.za / 
nessa.b@vodamail.co.za 


M 

PR-IFP 

8 

Bhengu 

My-Pet Ntombifuthi 

(c) 072 267 

2228 

Ntombifuthi. Bhengu@durban.gov.za 


F 

PR-ANC 

9 

Bhengu 

Mhlabunzima Ronald 

(c) 082 8375 

948 

BhenguMR@durban.gov.za 


M 

PR-IFP 

10 

Biyela 

Hlengiwe Precious 

(c) 079 953 

3614 

Fllengiwe.Biyela@durban.gov.za 


F 

PR-DA 

11 

Burne 

Warren Jerome de Marigny 

(c) 083 326 

6633 

Warren. Burne@durban.gov.za / 
warrenburnecllr@gmail.com 


M 

PR-DA 

12 

Butelezi 

Stanley Sakhephi 

(c) 083 477 

3896 

Sakhephi. Buthelezi@durban.gov.za 

16 

M 

ANC 

13 

Cassimjee 

Ismail 

(c) 076 737 

8629 

Cassimjeelsmail@durban.gov.za / 
ismailcassimjee@gmail.com 

70 

M 

DA 


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297 


No. 

Surname 

First Name 

Telephone 

(Cell) 

E-Mail Address 

Ward 

No. 

Gende 

r 

Party 

14 

Cele 

Hendrick 

(c) 074 790 

9277 

CeleHendrick@durban.gov.za 

67 

M 

ANC 

15 

Cele 

Hlengiwe 

(c) 072 227 

3417 

CeleHlengiwe(5)durban.gov.za 


F 

PR-ANC 

16 

Cele 

Joice Nondumiso 

(c) 083 571 

4877 

Nondumiso. Cele@durban.gov.za 


F 

PR-ANC 

17 

Cele 

Mfanufikile Stanley 

(c) 071 409 

0122 

Mfanufikile. Cele(5)durban.gov.za 


M 

PR-ANC 

18 

Cele 

Nana Tryphina 

(c) 083 242 

9674 

CeleNT(5)durban.gov.za 


F 

PR-ANC 

19 

Chamane 

Nompumelelo Beata 

(c) 071 864 

5454 

Nompumelelo. Chamane(5)durban.gov.za 
/ mpumechamanel(5)mtn. blackberry.com 


F 

PR-ANC 

20 

Chili 

Bonke Armstrong 

(c) 082 339 

4223 

Bonke. Chili(5)durban.gov.za / 
chiliba(5)telkomsa.net 

3 

M 

ANC 

21 

Coen 

Avrille Marcia 

(c) 083 775 

4963 

CoenAM(5)durban.gov.za / 

cira(5)telkomsa.net 


F 

PR-DA 

22 

Collins 

Terence Peter 

(c) 082 492 

1422 

Terence. Collins(5)durban.gov.za / 
teecol(5)mweb.co.za 


M 

PR-DA 

23 

Cotoza 

Ntombizizile Gladys 

(c) 083 543 

9635 

CotozaNG(5)durban.gov.za 


F 

PR-ANC 

24 

Crouch 

Richard John 

(c) 073 418 

6996 

CrouchRJ@durban.gov.za / 
councillor@wardl0.co.za 

10 

M 

DA 

25 

Dasarath 

Madhanlall 

(c) 084 3363942 

madanlall.dasrath(5)durban.gov.za 


M 

PR-MF 

26 

Davis 

Peter 

(c) 082 571 

3323 

DavisPeter(5)durban.gov.za / 
peterdee(5)telkomsa.net 


M 

PR-DA 

27 

De Boer 

Heinz Ulrik 

(c) 083 355 

2343 

DeBoerH(5)durban.gov.za / 
ward35(5)ethekwini.org 

35 

M 

DA 

28 

DIadIa 

Muziwenyanga Amon 

Kumakwabo 

(c) 076 704 

3794 

DladlaMAK(5)durban.gov.za 

82 

M 

ANC 


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298 


No. 

Surname 

First Name 

Telephone 

(Cell) 

E-Mail Address 

Ward 

No. 

Gende 

r 

Party 

29 

DIamini 

Alliam Nkosiphendule 

(c) 082 299 

6599 

DlaminiAN@durban.gov.za 

91 

M 

ANC 

30 

DIamini 

Bongani 

(c) 083 999 

8341 

DlaminiB@durban.gov.za 

46 

M 

ANC 

31 

DIamini 

Conrad Bongimusa 

(c) 083 351 

3474 

DlaminiCB@durban.gov.za 

26 

M 

ANC 

32 

DIamini 

Japhet Mlungisi 

(c) 072 204 

6778 (c)073 

383 7676 

DlaminiJM@durban.gov.za 


M 

PR-ANC 

33 

DIamini 

Ntwenhie Rudden 

(c) 073 919 

6133 

DlaminiNR@durban.gov.za 

85 

M 

ANC 

34 

DIamini 

Sipho 

(c) 083 241 

7161 

DlaminiSip@durban.gov.za / 
smisod(5)gmail.com 

94 

M 

ANC 

35 

DIudIa 

Bongumusa Selby 

(c) 073 642 

0409 

DludlaBS@durban.gov.za 

102 

M 

ANC 

36 

Dube 

Hloniphani Emmanuel 

(c) 073 516 

2554/ (c) 082 
736 6683 

DubeHE@durban.gov.za / 
hlonidube@ovi.com 


M 

PR-NFP 

37 

Du Bois 

Duncan Leslie 

(c) 083 291 

4913 

DuBoisDL@durban.gov.za / 
dubois@eastcoast.co.za 

66 

M 

DA 

38 

Fortein 

Barbara Agnes 

(c) 084 938 

0019 

ForteinBA@durban.gov.za / 
skeef@telkomsa.net 


F 

PR-ANC 

39 

Gaillard 

Denis Colin 

(c) 083 551 

2075 

GaillardC@durban.gov.za 


M 

PR-ANC 

40 

Ganesh 

Deochand 

(c) 084 510 

4682 

GaneshD@durban.gov.za / 
deochandg@gmail.com 

34 

M 

DA 

41 

Gebashe 

Vusi Emmanuel 

(c) 083 891 

5801 

GebasheVE@durban.gov.za 

55 

M 

ANC 

42 

Goge 

Hleziphi Doreen 

(c) 083 498 

1482 

GogeFID@durban.gov.za 


F 

PR-ANC 


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299 


No. 

Surname 

First Name 

Telephone 

(Cell) 

E-Mail Address 

Ward 

No. 

Gende 

r 

Party 

43 

Gokool 

Riona 

(c) 072 786 

2655 

GokoolR@durban.gov.za / 
rionagokool(5)gmail.com 


F 

PR-DA 

44 

Govender 

Dheenadayalan 

(c) 082 929 

4498 

ravi(Snaidoosflorist.co.za 


M 

PR-MF 

45 

Govender 

Ganas 

(c) 073 572 

2896 

ganas.govender8(5)gmail.com 


M 

PR-MF 

46 

Govender 

Sarojini 

(c) 083 502 

1009 

GovenderSarojini(5)durban.gov.za 


F 

PR-ANC 

47 

Graham 

Nicole Lee 

(c) 083 616 

1936 

GrahamNL(5)durban.gov.za / 
nicoleleegraham(5)gmail.com 

33 

F 

DA 

48 

Gumede 

Bongani Thulani 

(c) 082 629 

4981 

GumedeBT(5)durban.gov.za / 
bonganig(5)ikusasalethu.org 

21 

M 

ANC 

49 

Gumede 

Mduduzi Phineas 

(c) 083 957 

5514 

GumedeMP(5)durban.gov.za 

13 

M 

ANC 

50 

Gumede 

Ntombifuthi Clerice 

(c) 083 669 

8733 

GumedeNC(5)durban.gov.za 


F 

PR-IFP 

51 

Gumede 

Sibusiso Nigel 

(c) 083 2746 

961 

GumedeSN(5)durban.gov.za 


M 

PR-ANC 

52 

Gumede 

Thokozile Joyce 

(c) 073 5838 

585 

GumedeTJ(5)durban.gov.za 


F 

PR-IFP 

53 

Gumede 

Vela Cecil 

(c) 082 810 

7355 /(c) 072 

297 2823 

GumedeVC(5)durban.gov.za 


M 

PR-ANC 

54 

Gumede 

Zandile Ruth Thelma 

(c) 083 689 

9394 

GumedeZRT (5)durban.gov.za 

53 

F 

ANC 

55 

Gwala 

Bhungu Mgezeni 

(c) 083 392 

5467 

GwalaBM(5)durban.gov.za 


M 

PR-NFP 

56 

Hansraj 

Shane 

(c) 083 423 

8102 

HansraiShane(5)durban.gov.za / 

hansrair(®absa.co.za 


M 

PR-MF 


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300 


No. 

Surname 

First Name 

Telephone 

(Cell) 

E-Mail Address 

Ward 

No. 

Gende 

r 

Party 

57 

Hlengwa 

Primrose Phumzile 

(c) 083 5947 

293 

HlengwaPP@durban.gov.za 


F 

PR-ANC 

58 

Hlongwa 

Bhekisisa Andreas 

(c) 083 546 

8565 

Bhekisisa. Hlongwa@durban.gov.za 

15 

M 

ANC 

59 

Hoosen 

Sharon 

(c) 078 696 

7289 

ChettvSharon(5)durban.gov.za / 

cllrsharon(5)gmail.com/ 

sharonchettv(3mweb.co.za 


F 

PR-DA 

60 

Hoorzuk 

Diana Gloria 

(c) 083 784 

4208 

Diana. HoorzukDG@durban.gov.za / 
dianahl@mweb.co.za 


F 

PR-ANC 

61 

lyir 

Noorharpersadh Birtharthee 

(c) 083 777 

5248 

lyirNB@durban.gov.za / lyirP@websa.net 


M 

PR-IFP 

62 

Jayanathan 

Soobramoney 

(c) 083 555 

0886 

Soobramoney .Jayanathan@durban.gov.z 
a / lowernorth@kzn.da.org.za 


M 

PR-DA 

63 

Johnson 

Managi 

(c) 082 339 

2789 

JohnsonM@durban.gov.za / 
action. da@mweb. CO. za / 
Jmaggie@telkomsa.net 


F 

PR-DA 

64 

Kalicharan 

Soonilall 

(c) 083 683 

3321 

KalicharanS@durban.gov.za 

90 

M 

MF 

65 

Kaunda 

Sipho Alam 

(c) 073 353 

0901 

Sipho. Kaunda@durban.gov.za 


M 

PR-ANC 

66 

Khawula 

Nhlanhia Goosman 

(c) 078 565 

9628 



M 

PR-NFP 

67 

Khuzwayo 

Lihle Berrington 

(c) 072 288 

4092 

Lihle. Khuzwayo@durban.gov.za 

89 

M 

ANC 

68 

Khuzwayo 

Sduduzo 

(c) 076 531 

1199 

Sduduzo. Khuzwayo@durban.gov.za 

56 

M 

ANC 

69 

Kikine 

Samuel Kikine Bhekuyise 

(c) 071 608 

4127 

KikineSKB@durban.gov.za 


M 

PR-ANC 

70 

Kunju 

Vincent Thulani 

(c) 072 668 

1684 

KunjuVT @durban.gov.za 

57 

M 

ANC 


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301 


No. 

Surname 

First Name 

Telephone 

(Cell) 

E-Mail Address 

Ward 

No. 

Gende 

r 

Party 

71 

Langa 

Christopher Bonginkosi 

(c) 072 102 

5696 

LangaCB@durban.gov.za 


M 

PR-DA 

72 

Langa 

Nomthandazo Patricia 

(c) 083 249 

5489 

LangaNP@durban.gov.za 


F 

PR-ANC 

73 

Lefevre 

Rivaltz Jethro 

(c) 082 770 

4836 

LefevreRJ(5)durban.gov.za / 
ward31(5)ethekwini.org 

31 

M 

DA 

74 

Lindsay 

Jean Dagmar 

(c) 082 550 

4427 

LindsavJD(5)durban.gov.za / 
lindsavid(5)mweb.co.za 


F 

PR-DA 

75 

Lubhede 

Siphiwe Hendrick 

(c) 082 348 

2188/ (c)074 

104 8974 

LubhedeSH(5)durban.gov.za / 
lubhedesh(5)webmail.co.za 

37 

M 

ANC 

76 

Luthuli 

Pearl 

(c) 082 719 

3056 

Pearl. Luthuli@durban.gov.za 


F 

PR-ANC 

77 

Lutyeku 

Velile 

(c) 083 390 

2345 

LutyekuV@durban.gov.za 


M 

PR-ANC 

78 

Mabaso 

Nompumelelo Theodorah 

(c) 083 764 

5079 

Nompumelelo. Mabaso@durban.gov.za 

62 

F 

ANC 

79 

Mabizela 

David Dumsani 

(c) 082 293 

8794 

Dumsani. Mabizela@durban.gov.za 

43 

M 

ANC 

80 

Madlala 

Zimisele 

(c) 073 616 

0788 

Zimisele. Madlala@durban.gov.za 

54 

M 

ANC 

81 

Magubane 

Thami 

(c) 078 930 

3137 

Thami. Magubane@durban.gov.za 

98 

M 

ANC 

82 

Magwaza 

Makhosazana Queeneth 

(c) 072 398 

7742 

Makhosazana. Magwaza@durban.gov.za 


F 

PR-ANC 

83 

Makhanya- 

Sibiya 

Nokuthula Judith 

(c) 083 538 

0199 

Nokuthula. Makhanya- 
Sibiya@durban.gov.za 


F 

PR-ANC 

84 

Mapena 

William Lekgoa 

(c) 083 328 

4958 

William. Mapena@durban.gov.za / 
phoeby@webmail.co.za 


M 

PR-ANC 


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302 


No. 

Surname 

First Name 

Telephone 

(Cell) 

E-Mail Address 

Ward 

No. 

Gende 

r 

Party 

85 

Maphumulo 

Hubane Godfrey 

(c) 083 959 

4509 

Godfrey. Maphumulo@durban.gov.za 

96 

M 

ANC 

86 

Mbongwa 

Jabulisile Loraine 

(c) 071 817 

9560 

Lorraine. Mbongwa@durban.gov.za 

24 

F 

ANC 

87 

Mchunu 

Sithembiso Maria-Goret 

(c) 083 757 

5789 

Sithembiso. Mchunu@durban.gov.za 

9 

F 

ANC 

88 

Mcoyi 

Simingayesonke Wiseman 

(c) 083 356 

1023 

McoviSW(5)durban.gov.za / 
smcovi(3vahoo.com 


M 

PR-NFP 

89 

Mdlalose 

Lucky Pomu 

(c) 082 256 

5398 

Lucky.Mdlalose(5)durban.gov.za / 
lifikile@webmaiLco.za 

41 

M 

ANC 

90 

Meyer 

Lukas Marthinus 

(c) 078 729 

8768 

MeverLM(5)durban.gov.za / 
mevermartinsa(5)gmaiLcom 

27 

M 

DA 

91 

Mfeka 

Patrick 

(c) 083 741 

5374 

MfekaP@durban.gov.za 

14 

M 

ANC 

92 

Mhlanzi 

Dennis Mzwandile 

(c) 076 413 

9333 

Dennis. Mhlanzi@durban.gov.za 


M 

PR-ANC 

93 

Mhlongo 

Sikelela Emmanuel 

(c) 073 3712 

185 



M 

PR-DA 

94 

Mhlongo- 

Ntaka 

Lindiwe Muriel 

(c) 082 6808 

457 

Lindiwe. MhlongoNtaka@durban.gov.za 


F 

PR-ANC 

95 

Mitchell 

Andre Ross 

(c) 084 464 

1650 

Andre. Mitchell@durban.gov.za / 
amitchell@absamail.co.za 

63 

M 

DA 

96 

Mkhize 

Bongumusa Anthony 

(c) 078 121 

5642 / (c) 072 

438 7335 

Bongumusa. Mkhize@durban.gov.za / 
musa.mkhize(5)yahoo.com 

1 

M 

ANC 

97 

Mkhize 

Maxwell Mvikelwa 

(c) 076 143 

2814 

MaxwelLMkhize@durban.gov.za 

2 

M 

ANC 

98 

Mkhize 

Mbuyiseni Percival 

(c) 078 225 

7645 

Mbuyiseni. Mkhize@durban.gov.za 

100 

M 

ANC 


297 I P a g e 




303 


No. 

Surname 

First Name 

Telephone 

(Cell) 

E-Mail Address 

Ward 

No. 

Gende 

r 

Party 

99 

Mkhize 

Nomzamo Irene 

(c) 083 749 

5118 

MkhizeNI@durban.gov.za 

88 

F 

ANC 

100 

Mkhize 

Sibongiseni 

(c) 072 700 

8421 

Sibongiseni. Mkhize@durban.gov.za 

22 

M 

ANC 

101 

Mncwabe 

Divas Fakisono 

(c) 072 127 

4841 

MncwabeDF@durban.gov.za 


M 

PR-NFP 

102 

Mncwango 

Zwakele Maxwell 

(c) 082 862 

0360 

MncwangoZM@durban.gov.za / 
zwakelem@gmaiLcom 


M 

PR-DA 

103 

Mngadi 

Bhekisisa Richard 

(c) 083 506 

1105 

Bhekisisa. Mngadi@durban.gov.za 

29 

M 

ANC 

104 

Mngadi 

Molly 

(c) 083 4220 

059 

MngadiM(5)durban.gov.za / 
mngadi(5)absamaiLco.za 


F 

PR-IFP 

105 

Mngwengwe 

Lucky Nhlanhia 

(c) 084 6222 

353 / (c) 071 
0476 374 

MngwengweLN@durban.gov.za 

6 

M 

ANC 

106 

Mnyandu 

Mathombi Claudia 

(c) 082 592 

7390 

Mathombi.MnyanduMC@durban.gov.za / 
Mathombic@gmaiLcom 

77 

F 

ANC 

107 

Moodley 

Shunmugam Ramsamy 

(c) 084 557 

8777 

MoodleyShunmugamR@durban.gov.za / 
action@mweb.co.za 

48 

M 

ANC 

108 

Morar 

Shamini 

(c) 083 679 

4503 

Shamini. Morar@durban.gov.za / 
nnp@saoLcom 


F 

PR-ANC 

109 

Moyo 

Fanie Themba 

(c) 076 483 

9984 

Fanie. Moyo@durban.gov.za 

7 

M 

ANC 

110 

Mpungose 

Bongani Emmanuel 

(c) 072 424 

0388 

Bongani. Mpungose@durban.gov.za / 
bmpungosel@gmail.com 

92 

M 

IND 

111 

Msani 

Njabulo Eugene 

(c) 072 705 

3783 / (c) 074 
361 2601 

Njabulo. Msani@durban.gov.za 

44 

M 

ANC 

112 

Mshengu 

Selby Nhlanhia Lucky 

(c) 079 502 

5980 

snlmshengu@gmail.com 


M 

PR-DA 


298 I P a g e 




304 


No. 

Surname 

First Name 

Telephone 

(Cell) 

E-Mail Address 

Ward 

No. 

Gende 

r 

Party 

113 

Mthembu 

Angel Genqe 

(c) 076 987 

2641 

Angel. Mthembu@durban.gov.za 


F 

PR-NFP 

114 

Mthembu 

Babayi Absolom 

(c) 083 732 

9625 

MthembuBA@durban.gov.za 


M 

PR-DA 

115 

Mthembu 

Melta Khanyisile 

(c) 073 179 

2625 

MeltaKhanyisile.Mthembu@durban.gov.z 

a 


F 

PR-ANC 

116 

Mthembu 

Nomusa Euna 

(c) 084 624 

3785 

MthembuNE@durban.gov.za 

81 

F 

ANC 

117 

Mthembu 

Octavia Nolubabalo 

(c) 083 368 

6543 

Octavia. Mthembu@durban.gov.za 

74 

F 

ANC 

118 

Mthethwa 

Thabani Mbongiseni 

(c) 076 721 

3708 

MthethwaTM @durban.gov.za 


M 

PR-NFP 

119 

Mthethwa 

Zanele Priscilla 

(c) 072 027 

8474 / (c) 074 
076 3705 

ZaneleP.Mthethwa@durban.gov.za 


F 

PR-NFP 

120 

Mtshali 

Bongiwe Rose 

(c) 072 488 

0585 

MtshaliBR@durban.gov.za 


F 

PR-NFP 

121 

Mtshali 

Themba Solomon 

(c) 073 267 

3245 

Themba. MtshaliTS@durban.gov.za / 
themba.mtshali2@gmail.com 

23 

M 

ANC 

122 

Mulqueeny 

Judaline Iris Mary 

(c) 076 875 

8112 

MulqueenvJ@durban.gov.za / 
iudaline.mulqueenv@gmail.com 


F 

PR-ANC 

123 

Mvubu 

Andreas Bhekumuzi 

(c) 072 773 

7092 / (c) 073 

541 3246 

Andreas. Mvubu@durban.gov.za 

19 

M 

ANC 

124 

Mzobe 

Robert Mshiyeni 

(c) 072 529 

5479 

MzobeRM@durban.gov.za 

76 

M 

ANC 

125 

Naidoo 

Jane 

(c) 078 154 

9193 

Jane.Naidoo@durban.gov.za / 
j.c.windows@telkomsa.net 


F 

PR-IFP 

126 

Naidoo 

Jonathan 

(c) 072 450 

3960 

NaidooJonathan@durban.gov.za / 
jonathann@telkomsa.net 


M 

PR- 

ACDP 


299 I P a g e 




305 


No. 

Surname 

First Name 

Telephone 

(Cell) 

E-Mail Address 

Ward 

No. 

Gende 

r 

Party 

127 

Naidoo 

Loganathan 

(c) 083 272 

4658 

Loganathan. Naidoo@durban.gov.za 


M 

PR-ANC 

128 

Naidoo 

Pragalathan 

(c) 082 889 

0024 

NaidooPragalathan(5)durban.gov.za / 
rockett(5)mivn.co.za 


M 

PR-DA 

129 

Naidoo 

Sadaishum 

(c) 082 650 

4462 

NaidooSadaishum(5)durban.gov.za / 
stevenn(5)intekom.co.za 


M 

PR- 

COPE 

130 

Naidoo 

Selverani Rungiah 

(c) 073 773 

9330 

NaidooSR@durban.gov.za 


F 

PR-DA 

131 

Ncane 

Themba Jacob 

(c) 072 322 

1170 

Themba.Ncane@durban.gov.za 

28 

M 

ANC 

132 

Ndlela 

Ntombi Beatrice 

(c) 073 675 

4836 

Ntombi. Ndlela@durban.gov.za 


F 

PR-ANC 

133 

Ndlovu 

Halalisani Manqoba 

(c) 082 5179326 

halalisanindlovu@gmail.com 


M 

PR-DA 

134 

Ndlovu 

Lydia Nondumiso 

(c) 071 951 

2226 

Nondumiso. Ndlovu@durban.gov.za 

59 

F 

ANC 

135 

Ndlovu 

Sandile 

(c) 072 395 

0333/ (c)078 
473 6385 

Sandile. Ndlovu@durban.gov.za / 
sndlndlovu@yahoo.com 

75 

M 

ANC 

136 

Ndzimbomvu 

Mxolisi Kenneth 

(c) 072 737 

0971 

Mxolisi. Ndzimbomvu@durban.gov.za 

58 

M 

ANC 

137 

Ndzoyiya 

Zanele Sharon 

(c) 083 928 

7229 

NdzoyiyaZS@durban.gov.za 

30 

F 

ANC 

138 

Necobo 

Vincent Sipho 

(c) 079 974 

7670 

NgcoboVS@durban.gov.za 

93 

M 

ANC 

139 

Ngcobo 

Gregory Sikhumbuzo 

(c) 079 633 

9077 

Gregory.Ngcobo@durban.gov.za / 
sikhumbuzo. ngcobo@kzndoe.gov.za 

45 

M 

ANC 

140 

Ngcobo 

Mduduzi Christian 

(c) 073 192 

7790 

Mduduzi. Ngcobo@durban.gov.za / 
ngcobomduduzi@gmail.com 

12 

M 

ANC 


300 I P a g e 




306 


No. 

Surname 

First Name 

Telephone 

(Cell) 

E-Mail Address 

Ward 

No. 

Gende 

r 

Party 

141 

Ngcobo 

Obed Bhekisani 

(c) 083 503 

1871/ (c) 084 
252 9576 

Obed.Ngcobo@durban.gov.za 

25 

M 

ANC 

142 

Ngcobo 

Sindiswa Pretty-Girl 

(c) 072 570 

5819 

NgcoboSPG@durban.gov.za 


F 

PR-ANC 

143 

Ngema 

Dumisani Lucky 

(c) 083 726 

7888 

Dumisani. Ngema@durban.gov.za 

40 

M 

ANC 

144 

Ngema 

Sithembiso 

(c) 072 402 

1244 

NgemaSithembiso(5)durban.gov.za / 
masawuzanetrading(5)vahoo.com 


M 

PR-DA 

145 

Ngiba 

Bonginkosi Siphiwe 

(c) 083 434 

7352 /(c) 072 

234 6555 

NgibaBS@durban.gov.za / 
sonyathi@gmail.com 


M 

PR-APC 

146 

Ngiba 

Mkhipheni Mzimuni 

(c) 083 3391 

368 

Mkhipheni. Ngiba@durban.gov.za 

101 

M 

ANC 

147 

Ngwane 

Bhekisisa Alexius 

(c) 083 722 

1716 

Bhekisisa. Ngwane@durban.gov.za 

42 

M 

ANC 

148 

Ngwazi 

Lindela Artwell 

(c) 078 180 

5986 / (c) 078 

046 5253 

Lindela. Ngwazi@durban.gov.za 


M 

PR-ANC 

149 

Nhlapho 

Sibongile Jeanetty Marcia 

(c) 072 188 

5778 

NhlaphoSJ@durban.gov.za / 
sbon70@webmail.co.za 


F 

PR-ANC 

150 

Nkosi 

Mduduzi Samuel 

(c) 076 1331 

382 

NkosiMS@durban.gov.za 


M 

PR-IFP 

151 

Nofeketa 

Nkululeko Cromwell 

(c) 082 817 

2478 

Nkululeko. Nofeketa@durban.gov.za 


M 

PR-DA 

152 

Nojiyeza 

Mthokozisi 

(c) 078 152 

7339 

NojiyezaM@durban.gov.za 

80 

M 

ANC 

153 

Noyce 

Gillian Margaret 

(c) 082 800 

0943 

NovceG@durban.gov.za / 
gnovce@zamaiLco.za 


F 

PR-DA 


301 I P a g e 




307 


No. 

Surname 

First Name 

Telephone 

(Cell) 

E-Mail Address 

Ward 

No. 

Gende 

r 

Party 

154 

Ntshangase 

Bridget 

(c) 073 132 

1278 

NtshangaseB@durban.gov.za 


F 

PR-ANC 

155 

Ntshangase 

Mary-Jane Mama 

(c) 084 415 

4089 

NtshangaseMJ@durban.gov.za 


F 

PR-ANC 

156 

Nxumalo 

James Sikhosiphi 

(c) 073 490 

9804 

NxumaloJ@durban.gov.za 


M 

PR-ANC 

157 

Nyanisa 

Nelisiwe Nestar 

(c) 083 463 

3044 

Nelisiwe. Nyanisa@durban.gov.za 


F 

PR-ANC 

158 

Nyawose 

Mishack Sithenjwa 

(c) 082 767 

9868 

NyawoseMS@durban.gov.za 

79 

M 

ANC 

159 

Nzama 

Ziphathele Vincent 

(c) 074 519 

6920 

NzamaZV@durban.gov.za 

86 

M 

ANC 

160 

Nzuza 

Theresa Thembi 

(c) 083 682 

6702 

NzuzaTT(5)durban.gov.za / 
nzuza. thembi(5)vahoo. com 


F 

PR-ANC 

161 

Padayachee 

Pragasan 

(c) 082 407 

2797 

Pragasan. Padayachee@durban.gov.za 


M 

PR-MF 

162 

Peer 

Fawzia 

(c) 082 570 

6939 

Fawzia. Peer@durban.gov.za / 
fawziap@global.co.za 


F 

PR-ANC 

163 

Phewa 

Richard Zibani 

(c) 082 934 

5622 

PhewaRZ@durban.gov.za 

103 

M 

ANC 

164 

Phungula 

Bhekithemba Paulus 

(c) 076 535 

7190 

PhungulaBP@durban.gov.za 

84 

M 

ANC 

165 

Pienaar 

Jacob Johannes 

(c) 082 824 

8523 

Jacob. Pienaar@durban.gov.za / 
Councillor@31east.co.za 


M 

PR-ANC 

166 

Pillay 

Danovan 

(c) 084 654 

6969 

tinopillayl@yahoo.com 

49 

M 

DA 

167 

Pillay 

Devaraj Rama 

(c) 078 174 

8914 /(c) 084 

796 5590 


73 

M 

DA 


302 I P a g e 




308 


No. 

Surname 

First Name 

Telephone 

(Cell) 

E-Mail Address 

Ward 

No. 

Gende 

r 

Party 

168 

Pillay 

Kannagamba Rani 

(c) 083 976 

3089 

Kannagamba. Pillay@durban.gov.za / 
krpillay@gmail.com 


F 

PR-DA 

169 

Pillay 

Kavilan Brandon 

(c) 072 203 

7746 

Brandon. Pillay@durban.gov.za 

69 

M 

ANC 

170 

Pillay 

Krishna 

(c) 083 608 

3253 

Krishna. Pillay2@durban.gov.za 
dachatswork@gmail.com 


M 

PR-DA 

171 

Pillay 

Patrick 

(c) 083 797 

9824 

Patrick.Pillay@durban.gov.za / 
patrickpp@mweb.co.za 

51 

M 

MF 

172 

Prinsloo 

Billie Dorothea 

(c) 082 923 

0842 

PrinslooBD@durban.gov.za / 

billie@saol.com 

64 

F 

DA 

173 

Pullan 

Geoffrey Douglas Ayrton 

(c) 083 695 

9190 

Geoffrey.Pullan@durban.gov.za / 
geoffpullan@iafrica.com 


M 

PR-DA 

174 

Quio 

Valelisa Obed Obadiah 

(c) 078 127 

6114 

QuloVOO@durban.gov.za / 

obed.qulo@gmail.com 

11 

M 

ANC 

175 

Ryley 

Shaun 

(c) 083 974 

3500 

ward36@shaunrvley.com 

36 

M 

DA 

176 

Shabalala 

Abegail Nomthandazo 

(c) 073 188 

7759 

ShabalalaAN@durban.gov.za 

87 

F 

ANC 

111 

Shabalala 

Nomvuzo Francisca 

(c) 082 3987 

632 

ShabalalaNF@durban.gov.za 


F 

PR-ANC 

178 

Shange 

Senzangakhona 

(c) 082 791 

1058 

ShangeSenzangakhona@durban.gov.za 

95 

M 

ANC 

179 

Shelembe 

Micheal Themba 

(c) 073 195 

3655 

Micheal. ShelembeMT@durban.gov.za / 
tsshelembe@webmail.co.za 

8 

M 

ANC 

180 

Shembe 

Patience Nomvula 

(c) 073 782 

7358 

Nomvula. Shembe@durban.gov.za 

17 

F 

ANC 

181 

Shozi 

Dennis Mzwamasoka 

(c) 072 7334 

500 

Dennis. Shozi @durban.gov.za 

4 

M 

ANC 


303 I P a g e 


309 


No. 

Surname 

First Name 

Telephone 

(Cell) 

E-Mail Address 

Ward 

No. 

Gende 

r 

Party 

182 

Sibiya 

Mbuyiselwa Ephraim 

(c) 082 724 

9510 /(c) 084 

498 5620 

Mbuyiselwa. Sibiya@durban.gov.za / 
tallmansibiya(5)gmail.com 

38 

M 

ANC 

183 

Sibiya 

Ntombizodwa Princess 

(c) 072 219 

8274 

Ntombizodwa. Sibiya(5)durban.gov.za 


F 

PR-ANC 

184 

Sibiya 

Professor Mbasobheni 

(c) 083 658 

4976 / (c) 082 

760 0471 

Professor.Sibiya@durban.gov.za 

47 

M 

ANC 

185 

Singh 

Davanand 

(c) 084 9000 

196 

Davanand. Singh@durban.gov.za 

50 

M 

MF 

186 

Singh 

Bradley 

(c) 072 372 

5326 

SinghBradley(5)durban.gov.za / 
Zenetta.sanchez@gmail.com 

52 

M 

DA 

187 

Singh 

Eurika Lyndal 

(c) 072 324 

6106 

SinghEL@durban.gov.za 


F 

PR-DA 

188 

Singh 

Jayraj 

(c) 083 560 

2906 

Jayraj. SinghJayraj@durban.gov.za / 
singhjayrajparis@gmail.com 

71 

M 

DA 

189 

Sishange 

Patience Samukelisiwe 

(c) 082 685 

0934 

Patience. Sishange@durban.gov.za / 
lwazinfh@hotmail.com 


F 

PR-ANC 

190 

Snyman 

Aubrey Desmond 

(c) 082 7007 

081 

SnymanAD@durban.gov.za 

68 

M 

DA 

191 

Sokhabase 

Zamazulu Ruth 

(c) 073 092 

9991 

Zamazulu. Sokhabase@durban.gov.za / 
zSokhabase@yahoo.com 


F 

PR-ANC 

192 

Sosibo 

Jacob Bheka 

(c) 073 411 

7744 

Jacob. SosiboJB@durban.gov.za 

5 

M 

ANC 

193 

Sutcliffe 

Bruce Anthony 

(c) 082 822 

6854 

bruce@wardl8.co.za 

18 

M 

DA 

194 

Thring 

Wayne Maxim 

(c) 083 623 

1240 

ThringWM@durban.gov.za / 
wayne@acdpkzn.co.za 


M 

PR- 

ACDP 

195 

Van den Berg 

Jan Christoffel 

(c) 082 372 

2403 

VanDenBergJC@durban.gov.za / 

ward65@ethekwini.org 

65 

M 

DA 


304 I P a g e 


310 


No. 

Surname 

First Name 

Telephone 

(Cell) 

E-Mail Address 

Ward 

No. 

Gende 

r 

Party 

196 

Xhakaza 

Mandlenkosi Boniface 

(c) 082 614 

9337 

Boniface.Xhakaza(5)durban.gov.za / 
njololo(5)gmail.com 

83 

M 

ANC 

197 

Xulu 

Stanley Zamokwakhe 

(c) 083 741 

5189 

Stanley.XuluSZ@durban.gov.za 


M 

PR-ANC 

198 

Young 

Nokuthula Yolenda 

(c) 079 089 

7375 

YoungNY(®durban.gov.za / 
Nokuthulavolendavoung(Sgmail.com 


F 

PR-ANC 

199 

Zenzile 

Sebenzile William 

(c) 073 200 

3984 /(c) 031) 
305 5399 

ZenzileSW(5)durban.gov.za / 

william.zenzile(Sgmail.com 

32 

M 

ANC 

200 

Zondo 

Bongumusa 

(c) 072 242 

1182 

oscar.zondo(5)afmox.linde.com 

39 

M 

IFP 

201 

Zulu 

Muzonjani Zacharia 

(c) 072 981 

1219 

Muzonjani.Zulu(5)durban.gov.za / 
mzoh(5)telkomsa.net 


M 

PR-NFP 

202 

Zuma 

Thandiwe Meltah 

(c) 074 035 

6258 

Thandiwe. Zuma(5)durban.gov.za 

78 

F 

ANC 

203 

Zungu 

Marcus Sifiso 

(c) 082 532 

8125 /(c) 078 

414 5946 

Marcus.Zungu(5)durban.gov.za 

20 

M 

ANC 

204 

Zungu 

Pindiwe 

(c) 072 809 

7379 

Phindiwe.Zungu@durban.gov.za 

72 

F 

ANC 

205 

Zwane 

Mqiniseni Simon 

(c) 082 964 

3348 

Simon. Zwane@durban.gov.za / 
simonzwi(5)mweb.co.za 


M 

PR-ANC 


305 I P a g e 



312 


APPENDIX B 

COMMITTEES (OTHER THAN EXCO) ABD PURPOSE IF MEETING 2013 / 2014 


COMMITTEE NAME 

PURPOSE OF COMMITTEE 

AIDS Council 

Advises the Executive Committee on the incidence of 
persons infected and affected by HIV and AIDS within 
the Municipal area and strategies for a 
comprehensive Municipal response to HIV and AIDS. 

Audit Committee 

Advises the Council, political office bearers, the City 
Manager and Management on matters relating to 
internal financial control and financial audits; 
accounting policies; the adequacy, reliability and 
accuracy of financial reporting and information; 
performance management; effective governance; 
compliance with the Municipal Finance Management 
Act, the Annual Division of Revenue Act and any other 
applicable legislation; and performance evaluation. 

Bid Specification Committee 

Compiles specifications for each public invitation for 
competitive bids, and where authority has been 
sought to invite bids, by the Municipality. 

Bid Evaluation Committee 

Evaluates bids in accordance with the specifications 
for a specific procurement; and the points system set 
out in terms of paragraph 27(2)(f) of the SCM Policy 
and as prescribed in terms of the Preferential 
Procurement Policy Framework Act. 

Bid Adjudication Committee 

Considers reports and recommendations of the bid 
evaluation committee; and either makes a final award 
or a recommendation to the Accounting Officer to 
make the final award; or makes another 
recommendation to the Accounting Officer on how to 
proceed with the relevant procurement. 

Blacklisting Committee 

Bars persons or business entities who engage in 
undesirable or irregular practice/s or who default 
through wilful or negligent conduct from conducting 
business with the municipality. 

Civilian Oversight Committee 

Performs the function of civilian supervision of the 
municipal police service 

Cleansing & Solid Waste Training Committee 

Considers matters concerning the training of staff of 
the Cleansing & Solid Waste Unit. 

Community & Emergency Services Committee 

Considers and makes recommendations to the 

Executive Committee and Council on all matters 
pertaining to Emergency Services, Health, Social 
Services, Safety and Security. 

Consent Review Committee 

Considers applications by Council employees who 
wish to conduct private business provided the 
business is not in conflict with their employment at 
the Municipality. 

Durban Infrastructural Development Trust 

Deals with Trust matters regarding the Point 
Development area. 


306 I P a g e 




313 


COMMITTEE NAME 

PURPOSE OF COMMITTEE 

Economic Development & Planning 

Committee 

Considers reports from the Economic Development & 
Planning Cluster to propose recommendations to the 
Executive Committee. 

Ethics Committee 

It considers, investigates and makes findings on any 
alleged breaches of the Councillors' Code of Conduct 
and makes appropriate recommendations to the 
Council. 

eThekwini Municipality Informal Economy 
Forum 

Considers matters concerning informal trade in the 
Municipality. 

Finance & Procurement Committee 

Considers and makes recommendations to the 

Executive Committee and Council on all financial and 
procurement issues. 

Governance and Fluman Resources Committee 

Considers and makes recommendations to the 

Executive Committee and Council on all matters 
pertaining to the Units in the Governance & 
International Relations and Corporate & Fluman 
Resources Clusters. 

Local Labour Forum: Flealth Unit 

Considers labour matters of the Flealth Unit and 
where necessary makes recommendations to the 
Cluster Local Labour Forum (Community & Emergency 
Services). 

Fluman Resources & Development Sub- 
committee: Governance and Corporate & 
Fluman Resources 

Considers skills development matters of the 
Governance and Corporate & Fluman Resources 
Clusters. 

Fluman Resources & Development Sub- 
committee: Economic Development & 

Planning 

Considers skills development matters of the Economic 
Development & Planning Cluster. 

Fluman Resources & Development Sub- 
committee: Local Labour Forum: Treasury & 
Office of the City Manager 

Considers skills development matters of the Treasury 
Cluster & Units reporting directly to the City Manager. 

Fluman Settlements & Infrastructure 

Committee 

Considers and makes recommendations to the 

Executive Committee and Council on all matters 
pertaining to electricity, engineering, human 
settlements, transport, waste management and water 
& sanitation. 

Local Labour Forum: Governance and 
Corporate & Fluman Resources 

Considers labour matters of the Governance & 
International Relations and Corporate & Fluman 
Resource Clusters. 

Local Labour Forum: Community & Emergency 
Services 

Considers labour matters of the Community & 
Emergency Services Cluster. 

Local Labour Forum: Fluman Settlements & 

Infrastructure 

Considers labour matters of the Trading Services and 
Fluman Settlements, Engineering & Transport 
Authority Clusters. 

Local Labour Forum: Economic Development 
& Planning 

Considers labour matters pertaining to the Economic 
Development & Planning Cluster. 

Local Labour Forum: Treasury & Office of the 
City Manager 

Considers labour matters pertaining to the Treasury 
Cluster & Units reporting directly to the City Manager. 

Mayoral Awards Steering Committee 

Considers all matters concerning the Mayoral Awards 
Programme. 


307 I P a g e 




314 


COMMITTEE NAME 

PURPOSE OF COMMITTEE 



Municipal Public Accounts Committee 

Helps Council to hold the administration, municipal 
agencies and entities accountable for their 
management of municipal funds and assets in order 
to ensure the efficient and effective utilisation of 

Council resources. 

Risk Committee 

Assists the City Manager and Council to fulfil their risk 
management and control responsibilities in 
accordance with prescribed legislation and corporate 
governance principles. 

Senior Citizens Steering Committee 

Considers matters concerning the functions of Senior 
Citizens within the Municipality. 

Speaker's Committee 

Considers issues on the Council Agenda and assists the 
Speaker with his statutory duties, including the 
statutory duty assigned to the Speaker to ensure the 
proper conduct of council meetings. Also considers 
any other issues raised by Party Whips; such as issues 
affecting Councillors' welfare. 

Sports Body Leases : Monitoring and 
Evaluation Committee 

Considers and makes recommendations regarding the 
lease of recreational amenities to sporting bodies, 
clubs, etc. 

Town Planning Sub-Committee 

Considers and makes recommendations to the 
Economic Development & Planning Committee, 
Executive Committee and Council in respect of Town 
Planning issues. 


308 I P a g e 




315 


APPENDIX C: DISCLOSURES OF FINANCIAL INTERESTS 


Period 1 July 2012 to 30 June 2013 

Position 

Name 

Description of Financial interests* 

(Nil / Or details) 

(Executive) 

Mayor 

JS Nxumalo 

1. Pension: Municipal Councillors Pension Fund 

2. Spouses Interest: Ms PB Nxumalo is the director and 50% 
owner of the following company: Bhekimbeko Business 
Enterprise cc 

3. Land & Property: Residential home in Ashley, Pinetown 
(R650 000), co-owner of family home at Gasa Section, 
Fredville-Inchanga (R225 000), co-owner of site at 

Crestholme, (R240 000) 

Members of 

Exco 

NF Shabalala 

1. Pension: Municipal Councillors Pension Fund 

2. Land & Property: Owner of family home in Umlazi & owner 
of family home at Chatsworth. 

3. Foreign Travel: By City Of Libraville, Gabon for signing of 

MOU. 


LNaidoo 

1. Directorship & Partnership in La Mercy Beach Flotel, 
Chelmsford Flotel, Fairbreeze Flotel (Flotels and Liquor 
stores). 

2. Consultancies & Retainership: Jeevie Pillay (wife) private 
social worker 

3. Land & Property: 9 Malcolm Welfare Circle, Westbrook 

Beach (1.4mil) Residential home. 

4. Pension: KZN Municipal Pension Fund 


SZXulu 

1. Pension: Municipal Councillors Pension Fund 

2. Land & Property: Flouse in Umgababa and Land in Danganya 

3. Shares& Financial Interests: Igagasi Foundation (100%) and 
Inkasa Primary Co-Opt (30%) 


F Peer 

1. Shares: Telkom (100), Kumba (100), Al Baraka (20326.97 
units). Oasis Cresent Fund (34925.79) and Mittal Steel (100) 
(on 2006 disclosure only, not appearing on the 2011/2012 
forms) 

2. Directorship & Partnership: Minara Board Member- 
Business Chamber. 

3. Pension: Municipal Councillors Pension Fund 

4. Land & Property: Family home in Westville (Family Trust) 


Z R T Gumede 

1. Property: Phoenix and Amaoti 

2. Pension: Municipal Councillors Pension Fund 


S N Gumede 

1. Pension: Municipal Councillors Pension Fund 

2 . Property: Westville 


309 I P a g e 


316 


Period 1 July 2012 to 30 June 2013 

Position 

Name 

Description of Financial interests* 

(Nil / Or details) 


JN Cele 

1. Directorships and Partnerships in Imqanawe Yama Khosikazi 
Impande 

2. Pension: Municipal Councillors Pension Fund 

3. 


Z M Mncwango 

1. Directorship and Partnership: Igwababa Guest Lodge, Sizwe 
Entertainment and Events, Ngqondo Convenient Centre, 
Ngqondo Electrical and Plumbing Solutions Sazwa Advance 
Driving School 

2. Land: Leased land from Ingonyama Trust (Nongoma) 


H U de Boer 

1. Land and Property: Smallholding in PMB 


B.R.Mtshali 

1. Land & Property: Private house in Sea Cow Lake (R850 000) 


M S Nkozi 

Nil 

Municipal 

Manager 

Sibusiso Sithole 

1. Land & Property: 

Sectional Title Unit 38, Scheme no 69, SS Cressington (R 
360,000), 

Sectional Title Unit 30, Scheme 386, SS Tiloch (260,000), 

Erf 505, Umlazi, (R440, 000), 

Erf 35, Montessel (R 1,340,000), 

Erf 1315, La Lucia, Ext 8 (R 472,500) & Sectional Title Unit 
116, Scheme 758, SS Villa D' Algarve (R 899,000). 

2. Relationship Declaration: 

National Education Co-Ordinating Committee (Not in 
operation), 

Xhuma Development Solutions Cc (Final Deregistration), 
Future Bound Floldings (Pty) Ltd (Final Deregistration), 
Ikusasalethu Farming Venture Cc (Final Deregistration), 
Imilolozelo Logistic Cc(Final Deregistration), 

Reflection Strategy Leadership And Governance Services Cc 
(In Business) 

Deputy 

Municipal 
Manager - Chief 
Financial Officer 

Krish Kumar 

1. Shares: 

Old Mutual (1300), 

Sanlam (460), 

Sasol (100), 

Vodacom (100) 

2. Relationship Declaration: 

IMFO (sec21) 

3. Land & Property: 

133 Siripat Road, Reservoir Flills (Residential) (Value R1200 
000) 


310 I P a g e 


317 


Period 1 July 2012 to 30 June 2013 

Position 

Name 

Description of Financial interests* 

(Nil / Or details) 



Section 9 of 213 Kempton Park (Value R600 000) 

Deputy 

Municipal 
Manager - 
Governance 

Sipho Cele 

1. Land & Property: 

43 Chearsley Rd. Westville (R2000 000), 

285 Hamilton Str. Pretoria (R400 000) 

2. Private Work: Nyelini Enterprise (Taxi) 

Deputy 

Municipal 
Manager - 
Community and 
Emergency 
Services 

Musa Gumede 

1. Shares: 

Yakhisizwe Investment Ltd (+/-5%), (R500000) 

2. Land & Property: 

24 Kelvin Place, Dbn North (+/-2000 SqM) (R2700 000), 

4 Collingham, Umbilo (75 SqM) (R350 000) 

Deputy 

Municipal 
Manager - 
Economic 
Development 

Cecelia Naledi 
Moyo 

1. Shares: 

Circle way trading, 50% Shareholder, Ceiling & Partitioning 
Nkandlane CC,100% Shareholder, Consultancy 

2. Land and Property: 

Residential (1655SqM), (R5.5m) 

3. Directorship: 

Noah (Noah) NGO (Orphans), 

Circle way carpentry (In business but not trading at the 
moment), 

30 Nkandlane Investments consultancy (Not trading) 

Deputy 

Municipal 
Manager - 
Corporate & HR 

Dumisile Nene 

1. Land and Property: 

House-Darnall (1858SqM) (Value R826 000) (Income R51 096), 
Flat-NRB (90.80SqM) (Value R380 000) (Income R28627-20), 

Flat- Shaka's rock (90.80SqM)(Value R900000-00) 

2. Consultancy: Dumiswa Consult. HR &other consulting activities 


311 I P a g e 


APPENDIX D; DISCLOSURES OF FINANCIAL INTERESTS 


REPORT OF THE AUDIT COMMITTEE OF ETHEKWINI MUNICIPALITY AND MUNICIPAL ENTITIES 


The Audit Committee is a committee constituted in terms of sections 166(2) and 166 (6) (b) of the Municipal 
Finance Management Act, 56 of 2003and Section 94 (7) of the Companies Act. 

The Audit Committee is an independent advisory body which must advise the Accounting Officer, the Board of the 
Entity and the management staff of the Municipality and / or Entity. It advises in matters relating to:- 

• Internal financial control; 

• Internal Audit; 

• Risk Management processes; 

• Financial Reporting; 

• Performance Management; 

• Governance; and 

• Compliance with laws and regulations 

• Any other issues referred by the Municipality or its Entities. 


TERMS OF REFERENCE 

The Audit Committee has adopted formal terms of reference, hereafter referred to as the Audit Committee Charter. The 
Charter is presented at a formal meeting, deliberated upon and recommended for final approval by Council. The Audit 
Committee has executed its duties in accordance with these terms of reference during the financial year ended June 
2014. 


COMPOSITION AND MEETINGS 

The Committee consists of the following members:- 



MEETINGS 

ATTENDED 

Members 

Qualifications Appointed 

Main Audit 
Committee 

Performance 

Committee 

Municipal Entities 


Scheduled 

Attended 

Scheduled 

Attended 

Scheduled 

Attended 

Mr Sipho Nzuza 

B.Com, FI Dip 
(Tax) MBA 

27/01/2009 

6 

5 

3 

1 

4 

2 

Mr Peter 

Christianson 

B.Com, CA (SA) 

27/01/2009 

6 

6 

3 

3 

4 

4 

Mr Rohit Desai 

B.Com, MBA, CA 
(SA) 

27/01/2009 

6 

6 

3 

3 

4 

4 

Ms. Lihle Ndlovu 

LLM 

27/01/2009 

(Resigned: 13 
February 
2014) 

6 

3 

3 

2 

4 

2 

Ms Bukekile 
Mashoko 
(Member 
appointed on 08 
March 2013) 

MBA, MSc (Agri. 
Econ) with merit 
BSc 

(Agri. Flonours 

08/03/2013 

(Resigned: 

24/01/2014) 

6 

2 

3 


4 



REPORT OF THE AUDIT COMMITTEE OF ETHEKWINI MUNICIPALITY AND MUNICIPAL ENTITIES 


A separate risk committee as established in the prior year is in operation. The Chairperson of this Committee attends 
the Audit Committee meetings. One member of the Audit Committee, Mr Peter Christianson, has been seconded to 
the Risk Committee. 

The Accounting officer, DCM: Treasury and other Deputy City Managers attend Committee meetings by invitation. 
The External and Internal Auditors, City Integrity and Investigations and Enterprise Risk Management Units have 
unrestricted access to the Audit Committee. The effectiveness of the Audit Committee as a whole and its individual 
members is assessed on an annual basis. 


STATUTORY DUTIES 

In the execution of its statutory duties during the past financial year, the Audit Committee: 

• Believes the appointment of the Auditor General of South Africa (AGSA), complies with the requirements of the 
Local Government: Municipal Finance Management Act of South Africa, 2003 (Act No. 56 of 2003) (MFMA), the 
Division of Revenue Act of South Africa, 2011 (Act No. 6 of 2011) (DoRA), and Public Audit Act of South Africa, 
2004 (Act No. 25 of 2004) (PAA); 

• Determined the fee to be paid to the AGSA, as disclosed in the Annual Financial Statements; 

• Considered management reports submitted by the Municipality and Entities to each meeting of the 
Committee. 

• Reviewed the quality, adequacy, accuracy and reliability of financial information; 

• Reviewed the Annual Report and Financial Statements; 

• Responded to any issues raised by Internal Audit and Auditor General during the year; 

• Reviewed factors impacting on the financial sustainability of both the Municipality and Entities; and 

• Made quarterly submissions to the Executive Committee (EXCO) and Municipal Public Accounts Committee 
(MPAC), on any matters which in the opinion of the Committee needed to be brought to the attention of Council. 


OVERSIGHT OF RISK 

The Audit Committee has: 

• Received assurance from the Risk Committee, Internal Audit, City Integrity and Investigations, Enterprise Risk 
Management, Performance Management, City Treasury and the AGSA and satisfied itself that the following areas 
have been appropriately addressed with respect to the Municipality and the Entities:- 

o Internal financial controls; 
o Compliance requirements; 
o Financial reporting risks; 

o Fraud Risks as it relates to financial reporting; and 
o IT Governance risks 


REPORT OF THE AUDIT COMMITTEE OF ETHEKWINI MUNICIPALITY AND MUNICIPAL ENTITIES 


INTERNAL FINANCIAL CONTROLS 

The Audit Committee has: 

• Reviewed the effectiveness of eThekwini Municipality's systems of Internal Financial Controls and those of the 
Entities, including receiving assurance reports from Management, the Risk Committee, Internal and External Audit; 

• Reviewed significant issues raised by Internal and External Audit processes ; 

• Reviewed policies and procedures adopted for the prevention and detection of fraud; 

• Reviewed significant cases of misconduct or fraud or any other unethical activity by employees of the 
Municipality and of the Entities; 

• Reviewed residual risks arising from ERM risk registers and controls implemented to mitigate risk. 

Based on the processes and assurances obtained, we believe that the internal financial controls are effective other 
than residual concerns raised with respect to 

• The use of Section 36 of the MFMA, although a reduction in value is noted 

• Revenue Management System - the go live date of the 1 June 2014 was not achieved and the systems is still not 
fully operational. 

• The reconciliation of Flousing Debtors with the Provincial Department of Fluman Settlements. 

• The reliance on external consultants to maintain critical computer systems. 

• The increase in the percentage of Non-Revenue Water , coupled with the reducing water levels at certain 
dams. 

• The Integrated Rapid Public Transport Network - The Committee notes that this is a long-term project which 
requires significant grant funding to cover both capital and operational costs to ensure sustainability. 

• The ability of the Municipality's Housing Unit to effectively manage large scale housing projects within 
budget parameters, given the present staff structure and the absence of a Deputy City Manager to 
directly oversee this function. 

• The continuing escalation in the cost of providing a post-retirement medical aid benefit 

STATUTORY COMPLIANCE 

The Audit Committee has: 

Reviewed the effectiveness of the system for monitoring compliance with laws and regulations at both the Municipality 
and Entities. Whilst the Committee is satisfied with the policies and processes implemented, it has recommended the 
establishment of a formal Compliance function within the Municipality and at the ICC. 


PERFORMANCE INFORMATION AND EVALUATION 

The Audit Committee has reviewed performance information provided by both the Municipality and Entities at 
quarterly meetings throughout the year. Whilst the committee is satisfied with the information provided by the 
Entities, it is cognisant of the challenges faced by certain Departments within the Municipality in meeting their Key 
Performance Indicators and has recommended to management that their concerns be addressed, particularly where 
non-achievement of target adversely impacts upon service delivery. 


REPORT OF THE AUDIT COMMITTEE OF ETHEKWINI MUNICIPALITY AND MUNICIPAL ENTITIES 


EXTERNAL AUDIT (AGSA) 

The Audit Committee has: 

• Reviewed the scope of the External Audit to ensure the critical areas within the Municipality and Entities are 
being audited; 

• Reviewed the external auditor's report including issues arising out of the external audit. 

Based on processes followed and assurances received from the AGSA, nothing has come to our attention with 
regard to any matter impacting upon the independence of the External Auditors. 


INTERNAL AUDIT 

The Audit Committee has: 

• Reviewed and approved the Internal Audit Charter; 

• Evaluated the independence, effectiveness and performance of the Internal Audit Unit in the fulfilment of its 
mandate; 

• Reviewed Internal Audit reports, including management responses to issues raised therein; 

• Satisfied itself that the Internal Audit function has the necessary resources, budget and authority within 
Council to enable it to discharge its duties; 

• Noted the appointment of the Chief Audit Executive (Head: Internal Audit). 

• Approved the Internal Audit Plan; and 

• Encouraged co-operation between External and Internal Audit functions. 


APPRECIATION: 

The Audit Committee relies to a great extent on the Head: Internal Audit and his staff for their support and 
assistance, and for this we would like to thank them. 

The Committee would also like to express its gratitude to the Accounting Officer, DCM: Treasury and the AGSA for 
their co-operation and assistance during the year. 



Mr Sipho Nzuza 

Chairperson: EThekwini Municipality Audit Committee 


Date: December 2014 


REPORT OF THE AUDIT COMMITTEE REGARDING USHAKA MARINE WORLD (DMTP) 


The Audit Committee is a committee constituted in terms of sections 166(2) and 166 (6) (b) of the Municipal 
Finance Management Act, 56 of 2003 and Section 94 (7) of the Companies Act. 

The Audit and Risk Committee is an independent advisory body which must advise the board of directors, the 
accounting officer and the management staff of the municipal entity. It advises in matters relating to:- 

• Internal financial control; 

• Internal Audit; 

• Risk Management processes; 

• Financial Reporting; 

• Performance Management; 

• Governance; and 

• Any other issues referred by the Municipality or the Entity. 


TERMS OF REFERENCE 

The Audit Committee has adopted formal terms of reference, herein after referred to as the Audit Committee Charter. 
The Charter is presented at a formal meeting, deliberated upon and recommended for final approval by Council. The 
Audit and Risk Committee has executed its duties in accordance with these terms of reference during the financial 
year ended June 2014. 

COMPOSITION AND MEETINGS 

The Committee consists of the following members: 


Members 

Qualifications 

Appointed 

Resigned 

Entities (UShaka) Audit 
Committee 





Scheduled 

Attended 

Mr Sipho Nzuza 

B.Com, H Dip (Tax) 
MBA 

27/01/2009 

Current Member 

4 

2 

Mr Peter 

Christianson 

B.Com, CA (SA) 

27/01/2009 

Current Member 

4 

4 

Mr Rohit Desai 

B.Com, MBA, CA (SA) 

27/01/2009 

Current Member 

4 

4 

Ms. Lihle Ndlovu 

LLM 

27/01/2009 

13 February 2014 

4 

2 

Ms BukekileMashoko 
(Member appointed 
on 08 March 2013) 

MBA, MSc (Agri. 
Econ] with merit 
BSc (Agri. Honours 

08/03/2013 

24 January 2014 

4 



A separate risk committee as established in the prior year is in operation. The Chairperson of this Committee attends 
the Audit Committee meetings. One member of the Audit Committee, Mr Peter Christianson, has been seconded to 
the Risk Committee. 

The Accounting officer, DCM: Treasury and other Deputy City Managers attend Committee meetings by invitation. 
The External and Internal Auditors, City Integrity and Investigations and Enterprise Risk Management Units have 
unrestricted access to the Audit Committee. The effectiveness of the Audit Committee as a whole and its individual 
members is assessed on an annual basis. 


REPORT OF THE AUDIT COMMITTEE REGARDING USHAKA MARINE WORLD (DMTP) 

STATUTORY DUTIES 

In execution of its statutory duties during the past financial year, the Audit and Risk Committee: 

• Believes the appointment of the Auditor General of South Africa (AGSA), complies with the requirements of 
requirements of the Local Government: Municipal Finance Management Act of South Africa, 2003 (Act No. 56 of 
2003) (MFMA) and the Division of Revenue Act of South Africa, 2011 (Act No. 6 of 2011) (DoRA), and Public Audit 
Act of South Africa, 2004 (Act No. 25 of 2004) (PAA); 

• Determined the fee to be paid to the AGSA, as disclosed in the Annual Financial Statements; 

• Seconded a member of the Audit and Risk Committee to attend the Entity's Board and Finance Committee 
Meetings; 

• Considered management's reports, submitted to each successive meeting of the Audit Committee. 

• Reviewed the quality, adequacy, accuracy and reliability of financial information; 

• Reviewed the Annual Report and Financial Statements; 

• Responded to any issues raised by Internal Audit and Auditor General during the year; 

• Reviewed factors impacting on the financial sustainability of the Entity; and 

• Made submissions to the Executive Committee (Exco) on a quarterly basis of any matters which in the 
opinion of the Audit Committee needed to be brought to the attention of Council. 


OVERSIGHT OF RISK AND GOVERNANCE 

The Audit and Risk Committee has: 

• Received assurance from Internal Audit, Enterprise Risk Management, Performance Management, Treasury and 
the AGSA and satisfied itself that the following areas have been appropriately been addressed, 

o Internal financial controls ; 

o Compliance requirements ; 

o Financial reporting risks; 

o Fraud Risks as it related to financial reporting and ; 
o IT Governance risks 


INTERNAL FINANCIAL CONTROLS 

The Audit Committee has: 

• Reviewed the effectiveness of UShaka's (DMTP's) systems of Internal Financial Controls including receiving 
assurance reports from Management, Internal Audit and External Audit; 

• Reviewed significant issues raised by the Internal and External audit processes; 

• Reviewed policies and procedures adopted for the prevention and detection of fraud; 

• Reviewed significant cases of misconduct or fraud or any other unethical activity by officials within the 
Entity; 

• Reviewed significant legal exposures, and pending cases; and 

• Reviewed residual risks arising from ERM risk registers and controls implemented to mitigate risks. 

Based on the processes and assurances obtained, we believe that the internal financial controls are effective. 


REPORT OF THE AUDIT COMMITTEE REGARDING USHAKA MARINE WORLD (DMTP) 


STATUTORY COMPLIANCE 

The Audit Committee has: 

• Reviewed the effectiveness of the system for monitoring compliance with laws and regulations. 

• Has satisfied itself the policies and processes implemented provide the required assurance. 


PERFORMANCE INFORMATION AND EVALUATION 

The Audit Committee has reviewed performance information provided by the Entity at quarterly meetings 
throughout the year. The committee is satisfied with the information provided by the Entity. 


EXTERNAL AUDIT (AGSA) 

The Audit Committee has: 

• Reviewed the External Audit scope to ensure the critical areas within the Entity are being addressed; 

• Reviewed the external auditors report and noted issues arising out of the audit. 

Based on processes followed and assurances received from the AGSA, nothing has come to our attention with 
regard to any matter concerning the independence of the External Auditors. 


INTERNAL AUDIT 

The Audit Committee has: 

• Reviewed and approved the Internal Audit Charter; 

• Evaluated the independence, effectiveness and performance or the Internal Audit Unit in respect of the 
fulfilment of its mandate; 

• Reviewed Internal Audit reports, including management responses to issues raised therein; 

• Satisfied itself that the Internal Audit function has the necessary resources, budget and authority within 
Council to enable it to discharge its duties; 

• Approved the Internal Audit Plan, and 

• Encouraged cooperation between External and Internal audit functions. 


FINANCE FUNCTION 

The Committee is satisfied with the expertise and adequacy of resources within the Finance function. The Committee 
notes that the Chief Financial Officer was appointed as Acting Chief Executive Officer and Company Secretary with 
effect from 21 August 2013 to 20 January 2014. The Committee notes that this may have impacted on the proper 
functioning of this unit during the period of Acting. The Chief Executive Officer was appointed with effect from 02 
June 2014. The Committee furthermore notes the resignation of the Chief Financial Officer subsequent to year end. 
This position has been filled with the incumbent commencing in January 2015. 


REPORT OF THE AUDIT COMMITTEE REGARDING USHAKA MARINE WORLD (DMTP) 


APPRECIATION: 

The Audit Committee relies to a great extent on the Head: Internal Audit and his staff for their support and 
assistance, and for this we would like to thank them. 

The Committee would also like to express its gratitude to the, Accounting Officer, DCM: Treasury, Chief Executive 
Officer, Chief Financial Officer and the AGSA for their cooperation and assistance during the year. 



Mr Sipho Nzuza 

Chairperson: eThekwini Municipality Audit Committee 
Date: December 2014 


33 


REPORT OF THE AUDIT COMMITTEE REGARDING ALBERT LUTHULI INTERNATIONAL 
CONVENTION CENTRE (DURBAN ICC) 


The Audit Committee is a committee constituted in terms of sections 166(2) and 166 (6) (b) of the 
Municipal Finance Management Act, 56 of 2003 and Section 94 (7) of the Companies Act. 

The Audit and Risk Committee is an independent advisory body which must advise the board of 
directors, the Accounting Officer and the management staff of the municipal entity. It advises in 
matters relating to:- 

• Internal financial control; 

• Internal Audit; 

• Risk Management processes; 

• Financial Reporting; 

• Performance Management; 

• Governance; and 

• Any other issues referred by the Municipality or its Entity. 


TERMS OF REFERENCE 

The Audit Committee has adopted formal terms of reference, herein after referred to as the Audit and 
Risk Committee Charter. The Charter is presented at a formal meeting, deliberated upon and 
recommended for final approval by Council. The Audit and Risk Committee has executed its duties in 
accordance with these terms of reference during the financial year ended June 2014. 


COMPOSITION AND MEETINGS 

The Committee consists of the following members:- 


Members 

Qualifications 

Appointed 

Resigned 

Entities fICC) Audit Committee 





Scheduled 

Attended 

Mr Sipho Nzuza 

B.Com, H Dip (Tax) 
MBA 

27/01/2009 

Current Member 

4 

2 

Mr Peter 

Christianson 

B.Com, CA (SA) 

27/01/2009 

Current Member 

4 

4 

Mr Rohit Desai 

B.Com, MBA, CA (SA) 

27/01/2009 

Current Member 

4 

4 

Ms. Lihle Ndlovu 

LLM 

27/01/2009 

13 February 2014 

4 

2 

Ms Bukekile 

Mashoko 

(Member appointed on 
08 March 2013) 

MBA, MSc [Agri. 
Econ] with merit 
BSc (Agri. Honours 

08/03/2013 

24 January 2014 

4 



A separate risk committee as established in the prior year is in operation. The Chairperson of this 
Committee attends the Audit Committee meetings. One member of the Audit Committee, Mr Peter 
Christianson, has been seconded to the Risk Committee. 


REPORT OF THE AUDIT COMMITTEE REGARDING ALBERT LUTHULI INTERNATIONAL 
CONVENTION CENTRE (DURBAN ICC) 


The Accounting officer, DCM: Treasury and other Deputy City Managers attend Committee meetings by 
invitation. The External and Internal Auditors, City Integrity and Investigations and Enterprise Risk 
Management Units have unrestricted access to the Audit Committee. The effectiveness of the Audit 
Committee as a whole and its individual members is assessed on an annual basis. 


STATUTORY DUTIES 

In execution of its statutory duties during the past financial year, the Audit and Risk Committee: 

• Believes the appointment of the Auditor General of South Africa (AGSA), complies with the 
requirements of requirements of the Local Government: Municipal Finance Management Act of South 
Africa, 2003 (Act No. 56 of 2003) (MFMA) and the Division of Revenue Act of South Africa, 2011 (Act 
No. 6 of 2011) (DoRA), and Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA); 

• Determined the fee to be paid to the AGSA, as disclosed in the Annual Financial Statements; 

• Seconded a member of the Audit and Risk Committee to attend the Entity’s Board Meetings; 

• Considered management's reports, submitted to each successive meeting of the Audit Committee. 

• Reviewed the quality, adequacy, accuracy and reliability of financial information; 

• Reviewed the Annual Report and Financial Statements; 

• Responded to any issues raised by Internal Audit and Auditor General during the year; 

• Reviewed factors impacting on the financial sustainability of the Entity; and 

• Made submissions to the Executive Committee (Exco) on a quarterly basis of any matters which in 
the opinion of the Audit Committee needed to be brought to the attention of Council. 


OVERSIGHT OF RISK AND GOVERNANCE 

The Audit Committee has: 

• Received assurance from Internal Audit, Enterprise Risk Management, Performance Management 
Treasury and the AGSA and satisfied itself that the following areas have been appropriately been 
addressed: 

o Internal financial controls ; 
o Compliance requirements ; 
o Financial reporting risks; 

o Fraud Risks as it related to financial reporting and ; 
o IT Governance risks 


INTERNAL FINANCIAL CONTROLS 

The Audit Committee has: 

• Reviewed the effectiveness of Durban ICC's systems of Internal Financial Controls including 
receiving assurance reports from Management, Internal and External Audit; 

• Reviewed significant issues raised by the Internal and External audit processes ; 


REPORT OF THE AUDIT COMMITTEE REGARDING ALBERT LUTHULI INTERNATIONAL CONVENTION CENTRE (DURBAN 
ICC) 

• Reviewed policies and procedures adopted for the prevention and detection of fraud; 

• Reviewed significant cases of misconduct or fraud or any other unethical activity by officials within the 
Entity; 

• Reviewed significant legal exposures, and pending cases; and 

• Reviewed residual risks arising from ERM risk registers and controls implemented to mitigate risks. 

Based on the processes and assurances obtained, we believe that the internal financial controls are 
effective. 


STATUTORY COMPLIANCE 

The Audit Committee has: 

Reviewed the effectiveness of the system for monitoring compliance with laws and regulations. Whilst the Committee 
is satisfied with the policies and processes implemented at the Entity, it has recommended the establishment of a 
formal Compliance function within the Durban ICC which it is in the process of implementing. 


PERFORMANCE INFORMATION AND EVALUATION 

The Audit Committee has reviewed performance information provided by the Entity at quarterly 
meetings throughout the year. The committee is satisfied with the information provided by the Entity. 


INTERNAL AUDIT 

The Audit Committee has: 

• Reviewed and approved the Internal Audit Charter; 

• Evaluated the independence, effectiveness and performance or the Internal Audit Unit in respect of the 
fulfilment of its mandate; 

• Reviewed Internal Audit reports, including management responses to issues raised therein; 

• Satisfied itself that the Internal Audit function has the necessary resources, budget and authority 
within Council to enable it to discharge its duties; 

• Approved the Internal Audit Plan, and 

• Encouraged cooperation between External and Internal audit functions. 


EXTERNAL AUDIT (AGSA) 

The Audit Committee has: 

• Reviewed the External Audit scope to ensure the critical areas within the Entity are being 
addressed; 

• Reviewed the external auditors report including issues arising out of the external audit. 


REPORT OF THE AUDIT COMMITTEE REGARDING ALBERT LUTHULI INTERNATIONAL CONVENTION CENTRE (DURBAN 
ICC) 

Based on processes followed and assurances received from the AGSA, nothing has come to our 
attention with regard to any matter concerning the independence of the External Auditors. 

FINANCE FUNCTION 

The Committee is satisfied with the expertise and adequacy of resources within the Finance function, as at 
the end of the financial year as the new Finance Director was appointed. The Committee however notes the 
resignation of the Chief Executive Officer at the end of the financial year (4 July 2014). The Operations 
Director is currently acting in the position of CEO. The process to recruit a CEO is underway. 

APPRECIATION: 

The Audit Committee relies to a great extent on the Head: Internal Audit and his staff for their support and 
assistance, and for this we would like to thank them. 

The Committee would also like to express its gratitude to the. Accounting Officer, DCM: Treasury, Chief 
Executive Officer, Chief Financial Officer and the AGSA for their cooperation and assistance during the year. 



Mr Sipho Nzuza 


Chairperson: EThekwini Municipality 


Audit and Risk Committee 


Date: December 2014 


318 


APPENDIX E: CAPITAL BUDGET BY CLUSTER 


eThekwini Municipality 

CAPITAL COMPARATIVES STATEMENT FOR THE PERIOD ENDING 30 JUNE 2014 

SUMMARY BY CLUSTER 


R MILLIONS 


ORIGINAL 

TOTAL 

BUDGET 

2013/2014 

ADJUSTED 

TOTAL 

BUDGET 

2013/2014 

ACTUAL YTD 

% SPENT AGAINST 

ADJUSTED BUDGET 
















Human Settlement and Infrastructure 

4 753.608 

3 859.143 

3 664.593 

94.96 

Health & Social Services 

135.410 

145.369 

71.705 

49.33 

Safety & Security Services 

79.244 

82.602 

50.798 

61.50 

Sustainable Development & City 

Enterprises 

160.157 

160.718 

151.365 

94.18 

Treasury 

110.580 

129.875 

102.966 

79.28 

Governance 

13.500 

19.899 

7.265 

36.51 

Corporate Human Resources 

10.170 

7.580 

4.468 

58.95 

City Manager's Office 

169.477 

301.800 

133.808 

44.34 
















GRAND TOTAL 

5 432.146 

4 706.986 

4 186.970 

88.95 

















312 I P a g e 



320 


APPENDIX F: CONDITIONAL GRANTS (EXCLUDING MIG) 


Conditional Grants: excluding MIG 

R'OOO 

Details 

Budget 

Adjustme 

nts 

Budget 

Actual 

Variance 

Major conditions applied by donor (continue below if necessary) 

Budget 

Adjustments 

Budget 

Neighbourhood 
Development 
Partnership Grant 

3 555 

3 555 

4 769 

34% 

34% 

Approval by the National Treasury of programme and/or project business plans which are in 
alignment to the NDPG's goals. *The receiving officer must submit a milestone payment 
schedule with budgets and time frames for project implementation. * Obtain a council 
resolution striving to achieve measurable outputs 








Public Transport 
Infrastructure and 
Systems Grant 

507 366 

507 366 

285 298 

-44% 

-44% 

The current PTIS grant funds municipal public transport infrastructure and systems in support of 
integrated networks as defined in the Public Transport Strategy and provided for in the National 
Land Transport Act. * The allocation of PTIS funds must be aligned with the Integrated 

Transport Plan and its Integrated Rapid Public Transport Network (IRPTN) components as 
approved by the relevant municipal council. * Cities are repaired to establish dedicated project 
teams with sufficient capacity to implement IRPTN projects. * IRPTN designs must recover all 
direct operating costs of the contracted operators (excluding vehicle capital costs) from fare 
revenue. * Cities are repaired to establish specialist capacity to manage and monitor IRPTN 
system contracts and operations as well as to plan future expansions of the network and this 
must be in place in advance of the first IRPTN operator commencing with service provision to 
the public. 








Expanded Public 

Works Programme 
Incentive 

47 381 

47 381 

59 747 

26% 

26% 

Municipalities must sign a standard incentive agreement with national Department of Public 
Works (NDPW) to agree to comply with the conditions and obligations of the grant. * 
Municipalities must report progress on all projects for which they are claiming the incentive via 
NDPW's EPWP Management Information System (MIS). This includes reporting beneficiary 
information. * Municipalities must maintain beneficiary and payroll records as specified in the 
audit reguirements in the EPWP Incentive manual. * Eligible municipalities must use the EPWP 
incentive grant received for continuing or expanding Job creation programmes 


313 I P a g e 


































321 


Integrated National 
Electrification 
Programme 
(Municipal Grant) 

20 000 

20 000 

20 000 

0% 

0% 

Municipality must contractually undertake to account for the allocated funds on a monthly 
basis by the 10th of every month, ensure that the designs for households' connections projects 
are completed before June of every year in order to allow for construction to start shortly after 
July. And if the external consultant will be used, such consultant must be appointed before the 
end of May, pass all benefits to end - customers', not utilise the fund for any purpose other than 
electrification. 








Electricity Demand 

Side Management 
Grant 

15 000 

15 000 

692 

-95% 

-95% 

Implementation of labour intensive methods in accordance with EPWP guidelines on EDSM 
projects. * Measurements and verification (M&V) system to be done by M&V experts in line 
with Electricity Demand Side Management policy. 

Public Transport 
Network Operations 

71 395 

71 395 

71 395 

0% 

0% 

The grant is use to provide supplementary operational funding to municipalities operating 
approved Integrated rapid Public transport Network/ Integrated Public Transport Network 
services 

Intergrated City 
Development Grant 

9 539 

9 539 

9 539 

0% 

0% 

The grant is used to provide financial incentive for metropolitan municipalities to integrate 
and focus their use of available infrastructure investment and regulatory instruments to achieve 
a more compact urban spatial form. 








Total 

684 638 

684 638 

189 085 





* This includes Neighbourhood Development Partnership Grant, Public Transport Infrastructure and Systems Grant and any other grant excluding Municipal Infrastructure Grant 
(MIG) which is dealt with in the main report, see T5.8.3. Variances are calculated by dividing the difference between actual and original/adjustments budget by the 
original/adjustments budget. 


Where the Budget is Nil against the Actual, the Actual was funded by a Roll-over from the previous year 


314 I P a g e 

























322 


APPENDIX G: CAPITAL PROGRAMMES BY MAJOR PROJECTS 


Capital Programme by Project 2013/14 

R' 000 

Capital Project 

Project No. 

Original 

Budget 

Adjusted 

Budget 

Actual 

Variance (Act- 
Adj) 

% 

Variance (Act - 
OB) 

% 

HOUSING-HOSTELS 







Kwa Mashu 

H7001 

10 000 

33 486 

7 280 

22% 

73% 

SJ Smith 

H7003 

10 000 

17 000 

4 036 

24% 

40% 

Glebelands 

H7002 

10 000 

14102 

5 688 

40% 

57% 








ENGINEERING-ROADS 







Road Rehabilitation 

P3965 

321 193 

294 950 

397 118 

135% 

124% 

Northern Areas Road Upgrades 

P4150 

112 500 

112 500 

10 692 

10% 

10% 

N2 Interchange 

P3528 

43 200 

30 388 

- 

0% 

0% 








STORMWATER 







Rana Road, Isipingo 

P7905 

- 

34 409 

32 892 

96% 

- 

Reconstruction of Durban Bay of Plenty 

P8330 

20 215 

20 215 

19 769 

98% 

98% 

Umgeni River Canalisation 

P2544 

12 600 

12 600 

5194 

41% 

- 








ETHEKWENI TRANSPORT AUTHORITY 







PTIS Blocksum 

P6546 

678 761 

385 801 

226 159 

59% 

33% 

Traffic Calming - Might Order Roads - Various 

P3508 

5 400 

11 200 

9 982 

89% 

185% 

Harry Gwala Road Upgrade 

P8302 

- 

11 000 

309 

3% 









SOLID WASTE 







Electron Road Transfer Station Project 

WEL02 

- 

54 274 

58 862 

108% 


Fleet - Solid Waste 


43 200 

43 200 

43 090 

100% 

100% 

Buffelsdraai Container Gantry & Hardstand Ext. Area 

WBU12 

13 500 

11 000 

1 712 

16% 

13% 









315 I P a g e 


323 


SANITATION 







Ablution Blocks - In Situ Upgrade 

Y6525 

233 000 

251 198 

555 737 

221% 

239% 

Kwa Mashua WWTW 

Y6973 

80 000 

94 600 

113 640 

120% 

142% 

Expansion of Phoenix WTW 

Y6468 

80 000 

74 023 

33 120 

45% 

41% 








WATER 







Water Flagship Project - Western Aqueduct 

X4625 

244 000 

292 896 

195 880 

67% 

80% 

Northern Aquaduct 

X4764 

190 000 

126 587 

138 660 

110% 

73% 

Fleet - Water 


17 100 

67 100 

104 015 

155% 

608% 








ELECTRICTY 







MV/LV New Supply-Central Region 

SD000025 

30 000 

70 000 

51 857 

74% 

173% 

Klaarwater Sub Station 

TM0024 

42 000 

41 950 

6 345 

15% 

15% 

Prepayment Connection Costs -All Areas 

EFA001 

40 000 

40 000 

61 239 

153% 

153% 








COMMUNITY AND EMERGENCY SERVICES - HEALTH 

SAFETY & SOCIAL SERVICES 







LIBRARIES 







New Central Library (Library subsidy ringfenced) 

N1225 

34 000 

34 000 

2 208 

6% 

6% 

New Central Library (Province Grant) 

N1225 

10 000 

10 000 

- 

0% 

0% 








MUSEUMS 







Cato Manor Museum 

N1340 

13 200 

17 459 

2 877 

16% 

22% 








COMMUNITY AND EMERGENCY SERVICES - SAFETY 

AND SECURITY 







FIRE AND EMERGENCY SERVICES 







Specialist Support Vehicles - Fire 

N1112 

2 700 

19 387 

16 964 

88% 

628% 








EMERGENCY CONTROL & DISASTER MGT 







INK initiative CCTV system 

N1714 

9 000 

9 000 

2312 

26% 

26% 









316 I P a g e 



324 


SECURITY MANAGEMENT 







Security management - New facilities 

N1608 

9 972 

9 972 

8 386 

84% 

- 








ECONOMIC DEVELOPMENT & PLANNING 







TOWN CENTRE RENEWAL 







Cornubia Blackburn Link 

S1097 

9 500 

15117 

37 732 

250% 

397% 








URBAN RENEWAL PROJECTS 







Community Development Project 

02015 

11 999 

11 999 

20 518 

171% 

171% 

Innercity Regeneration 

S6001 

- 

11 850 

- 

0% 

#DIV/0! 








FINANCE 







Fleet Replacement & Maintenance 


29 000 

42 800 

43 666 

102% 

151% 

RMS 


40 000 

40 000 

34 012 

85% 

85% 

Building Refurbishment/Upgrade 

C2158 

2 250 

5 550 

3 582 

65% 

159% 








GOVERNANCE & INTERNATIONAL RELATIONS 







Upgrading of Airconditioning 

G1001 

7 200 

7 200 

82 

1% 

1% 

Records Management System Software 

G1004 

2 250 

2 250 

1 282 

57% 

57% 

CPAS Blocksum 


1 800 

1 800 

725 

40% 

40% 








INFORMATION TECHNOLOGY 







Tetra Systems 

01094 

- 

58 346 

- 

0% 

#DIV/0! 

Major System Enhancement 

01082 

22 050 

22 050 

21 113 

96% 

96% 









317 I P a g e 



325 


APPENDIX H: CAPITAL EXPENDITURE 



Capital Expenditure - New Assets Programme* 











R'OOO 

Description 

2012/13 

2013/14 

Planned Capital expenditure 


Actual 

Original 

Budget 

Adjustment 

Budget 

Actual 

Expenditure 

FY+1 

FY+2 

FY + 3 

Capital expenditure by Asset Class 








Infrastructure - Total 

1 447 407 

2 715 555 

2 250 396 

2 133 249 

2 758 101 

2 943 753 

3 005 079 

Infrastructure: Road transport - Total 

278 107 

262 320 

259 467 

266 992 

30 601 

23 805 

24 000 

Roads, Pavements & Bridges 

259 013 

256 470 

253 617 

265 755 

14 401 

23 805 

24 000 


19 094 

5 850 

5 850 

1 237 

16 200 

- 

- 

Storm water 

Infrastructure: Electricity - Total 

283 609 

183 516 

251 835 

286 407 

378 972 

262 161 

270 896 

Generation 



- 





Transmission & Reticulation 

260 054 

177 891 

236 470 

268 311 

369 027 

252 071 

261 296 

Street Lighting 

23 555 

5 625 

15 365 

18 096 

9 945 

10 090 

9 600 

Infrastructure: Water - Total 

179 968 

602 150 

613 691 

591 002 

673 250 

638 000 

660 795 

Dams & Reservoirs 

11 593 

62 400 

43 950 

13 825 

83 280 

36 300 

56 445 

Water purification 



- 

- 




Reticulation 

168 375 

539 750 

569 741 

577 177 

589 970 

601 700 

604 350 

Infrastructure: Sanitation - Total 

357 575 

542 050 

509 349 

693 423 

666 050 

642 700 

646 576 

Reticulation 

357 169 

396 550 

509 349 

673 034 

338 750 

347 850 

467 576 

Sewerage purification 

406 

145 500 

- 

20 389 

327 300 

294 850 

179 000 


318 I P a g e 


326 


Infrastructure: Other - Total 

348 148 

1 125 519 

616 054 

295425 

1 009 228 

1 377 087 

1 402 812 

Waste Management 

90 622 

23 400 

79 833 

88 384 

44 000 

32 850 

58100 

Transportation 

23 598 

952 119 

386 220 

204 795 

835 228 

958 337 

958 812 

Gas 

- 


- 

- 




Other 

233 928 

150 000 

150 000 

2 246 

130 000 

385 900 

385 900 

Community - Total 

45 353 

127 989 

132 318 

35 029 

152 437 

192 396 

410160 

Parks & gardens 

171 


- 

- 




Sportsfields & stadia 



- 


875 

5 638 

- 

Swimming pools 



- 


16 964 

9 000 

7 200 

Community halls 



- 





Libraries 

15 649 

47 600 

47 600 

2 441 

45492 

123 781 

284 720 

Recreational facilities 



3 070 





Fire, safety & emergency 

1 379 


- 

- 

27 469 

16 659 

21 360 

Security and policing 

7 674 

36 477 

36 477 

13 292 




Buses 



- 





Clinics 

12 390 

30 262 

27 262 

16 385 

10 480 

8 000 

17 200 

Museums & Art Galleries 

8 090 

13 200 

17 459 

2 877 

15 800 

4118 

54 080 

Cemeteries 

- 


- 

- 

950 

1 830 

12 000 

Social rental housing 

- 


- 

- 




Other 


450 

450 

34 

34 407 

23 370 

13 600 


Table continued next page 


319 I P a g e 


327 


Table continued from previous page 


Capital Expenditure - New Assets Programme* 







R '000 








Description 

2012/13 

2013/14 

Planned Capital expenditure 


Actual 

Original 

Budget 

Adjustment 

Budget 

Actual 

Expenditure 

FY + 1 

FY + 2 

FY + 3 

Capital expenditure by Asset 

Class 








Heritage assets - Total 

1462 

3 500 

5 700 

5 073 

_ 

_ 

_ 

Buildings 








Other 

1462 

3 500 

5 700 

5 073 












Investment properties - Total 








Housing development 








Other 

- 



_ 

_ 

_ 

_ 









Other assets 

452 693 

790 150 

619 252 

391 190 

989 727 

1 195 384 

1 244 748 

General vehicles 

188 772 

43 200 

156 520 

83 860 

29 600 

49 850 

139 400 

Specialised vehicles 

76 548 

19 800 

30 238 

120 979 

73 024 

111 104 

131 040 

Plant & equipment 

79 354 

36 900 

65 590 

72 898 

150120 

199 744 

113 993 

Computers - 
hardware/equipment 

28 657 

43 371 

48 979 

40 035 

89 260 

95 630 

98 534 

Furniture and other office 
equipment 



_ 

1 410 

77 107 

47 535 

38 951 

Abattoirs 



- 





Markets 

Civic Land and Buildings 

2 431 


5 339 


450 

17 550 

15 840 


320 I P a g e 


328 


Other Buildings 

32 529 

34 182 

89 063 

68 410 

113 646 

30 521 


23 590 


Other Land 

5 957 

1 152 

- 

1 197 






Surplus Assets - (Investment or 
Inventory) 


_ 








Other 

38 445 

611 545 

223 524 

2 401 

456 520 

643 450 


683 400 










Agricultural assets 

- 



- 

- 

- 

- 

List sub-class 








Biological assets 

- 



- 

- 

- 

- 

List sub-class 








Intangibles 

4 784 

- 

282 

4 496 

2 700 

5 150 

7 000 

Computers - software & 
programming 

Other (list sub-class) 

4 784 


282 

4 496 

2 700 

5 150 

7 000 









Total Capital Expenditure on new 

1 951 

3 637 








assets 

699 

194 

3 007 948 

2 569 037 

3 902 965 

4 336 683 

4 666 987 






19 








Specialised vehicles 

76 548 

800 

30 238 

120 979 

73 024 

111 104 

131 040 



Refuse 

68 315 

17 100 

17 100 

104 015 

62 800 

78100 


100 000 


Fire 

8 233 

2 700 

13 138 

16 964 

5 724 

23 004 


19 040 


Conservancy 

Ambulances 

— 


- 

- 

4 500 

10 000 


12 000 


* Note: Information for this table 
may be sourced from MBRR 
(2009: Table SA34a) 









TM.l 


321 I P a g e 


329 


Capital Expenditure - Upgrade/Renewal Programme 

* 






R '000 









2012/13 

2013/14 

Planned Capital expenditure 

Description 

Actual 

Original 

Budget 

Adjustment 

Budget 

Actual 

Expenditure 

FY + 1 

FY + 2 

FY + 3 

Capital expenditure by Asset 

Class 









1 122 

1 310 






Infrastructure - Total 

387 

114 

1 354 337 

1 200 293 

1 210 657 

1 282 539 

1 439 626 

Infrastructure: Road transport - 
Total 

732 822 

526 234 

577 137 

740 285 

658 820 

624 386 

701 142 

Roads, Pavements & Bridges 

709 359 

458 882 

464 644 

555 458 

608 020 

554 084 

590 000 

Storm water 

23 463 

67 352 

112 493 

184 827 

50 800 

70 302 

111 142 

Infrastructure: Electricity - Total 

168 827 

271 900 

206 211 

123 225 

292 427 

393 955 

420 294 

Generation 

- 


- 

- 




Transmission & Reticulation 

166 234 

271 900 

206 211 

123 225 

292 427 

393 955 

420 294 

Street Lighting 

2 593 


- 

- 

- 

- 

- 

Infrastructure: Water - Total 

17 823 

97 280 

90 595 

60 795 

139 500 

115150 

138 000 

Dams & Reservoirs 

8 514 


- 

- 

4 500 

7 200 

7 500 

Water purification 

181 


- 

- 




Reticulation 

9 128 

97 280 

90 595 

60 795 

135 000 

107 950 

130 500 

Infrastructure: Sanitation - Total 

130 379 

228 350 

142 277 

122 827 

25 700 

31 700 

43 000 

Reticulation 

3 085 

94 850 

142 277 

122 827 

16 200 

22 400 

36 000 

Sewerage purification 

127 294 

133 500 

- 

- 

9 500 

9 300 

7 000 

Infrastructure: Other - Total 

72 536 

186 350 

338 117 

153 161 

94 210 

117 348 

137 190 

Waste Management 

13 967 


- 

- 

- 

1 673 

7 000 


322 I P a g e 


330 


Transportation 

8 271 

115 950 

192 212 

84 794 

94 210 

115 675 

130 190 

Gas 

- 

5 400 

5400 

5 392 




Other 

50 298 

65 000 

140 505 

62 975 

- 

- 

- 

Community 

143 609 

91 671 

81 972 

62 566 

120 598 

141 016 

140 079 

Parks & gardens 

5 584 

4 235 

5 473 

16 777 

13 437 

17 100 

20 400 

Sportsfields & stadia 

19 501 

25 420 

24 251 

16 562 

8 519 

9 300 

18 320 

Swimming pools 

4 720 

14 592 

10 000 

4 102 

16 868 

26 861 

8 000 

Community halls 

4 496 

2 163 

4 383 

1 218 

3129 

4 653 

5 679 

Libraries 

10 052 

11989 

13 109 

12 246 

8 970 

10 000 

23 600 

Recreational facilities 

93 573 


- 

- 




Fire, safety & emergency 

- 

32 372 

21 063 

9 199 

18 448 

33 306 

21 280 

Security and policing 

- 


- 

- 




Buses 

- 


- 

- 




Clinics 

- 


- 

- 

16 000 

16 000 

- 

Museums & Art Galleries 

310 

450 

788 

699 

30 270 

21 546 

35 600 

Cemeteries 

5 373 

450 

2 755 

1 763 

2107 

1 800 

4 000 

Social rental housing 

- 


- 

- 




Other 

- 


150 

- 

2 850 

450 

3 200 









Heritage assets 

7 478 

11 250 

- 

1 227 

- 

- 

- 

Buildings 

7 478 

11 250 

- 

1 227 

- 

- 

- 

Other 

- 


- 

- 

- 

- 

- 


Table continued next page 


323 I P a g e 


331 


Table continued from previous 
page 




Capital Expenditure - Upgrade/Renewal Programme* 











R'OOO 


2012/13 

2013/14 

Planned Capital expenditure 

Description 

Actual 

Original 

Budget 

Adjustment 

Budget 

Actual 

Expenditure 

FY + 1 

FY + 2 

FY + 3 

Capital expenditure bv Asset 

Class 








Investment properties 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

Housing development 

Other 








Other assets 

233 330 

376 985 

257 797 

349 678 

474 101 

764 543 

855 665 

General vehicles 

27 139 

29 900 

- 

- 

- 

- 

- 


Specialised vehicles 

44 452 

4 500 

4 500 

36 487 


9 801 

9 530 


Plant & equipment 

24 823 

23 256 

35 370 

29 075 





Computers - 
hardware/equipment 

Furniture and other office 

3 632 

900 

900 

2 319 





equipment 

1 280 

711 

3 269 

1 099 





Abattoirs 

- 


- 

- 

2 430 

- 

- 


Markets 

7 264 

3 420 

3 420 

2 529 





Civic Land and Buildings 

- 


- 

- 





Other Buildings 

54 553 

117 601 

50 231 

93 772 





Other Land 

- 

8 087 

8 087 

73 





Surplus Assets - (Investment or 
Inventory) 

_ 


_ 

_ 

_ 

_ 

_ 



324 I P a g e 


332 


Other 

Agricultural assets 

List sub-class 

Biological assets 

List sub-class 

Intangibles 

Computers - software & 
programming 

Other (list sub-class) 

Total Capital Expenditure on 
renewal of existing assets 

70187 

188 610 

152 021 

184 324 

471 671 

754 742 

846 135 








- 

- 


- 

- 

- 

- 








- 

- 


- 

- 

- 

- 








4 273 

4 932 

4 932 

4 169 

2 700 

5 150 

7 000 

4 273 

4 932 

4 932 

4 169 

2 700 

5 150 

7 000 

1 511 077 

1 794 952 

1 699 038 

1 617 933 

1 808 056 

2 193 248 

2 442 370 









Soecialised vehicles 

Refuse 

Fire 

Conservancy 

Ambulances 

44 452 

4 500 

4 500 

36 487 

- 

- 

- 

44 452 

4 500 

4 500 

36 487 

- 

- 

- 

* Note: Information for this table may be sourced from MBRR (2009: Table SA34b) 


325 I P a g e 


333 


Capital Expenditure - Upgrade/Renewal Programme* 

R'OOO 

Description 

2012/13 

2013/14 

Planned Capital expenditure 

Actual 

Original Budget 

Adjustment 

Budget 

Actual 

Expenditure 

FY + 1 

FY + 2 

FY + 3 

Capital expenditure bv Asset Class 








Infrastructure - Total 

1 122 387 

1 310 114 

1 354 337 

1 200 293 

1 210 657 

1 282 539 

1 439 626 

Infrastructure: Road transport -Total 

732 822 

526 234 

577 137 

740 285 

658 820 

624 386 

701 142 

Roads, Pavements & Bridges 

709 359 

458 882 

464 644 

555 458 

608 020 

554 084 

590 000 

Storm water 

23 463 

67 352 

112 493 

184 827 

50 800 

70 302 

111 142 

Infrastructure: Electricity - Total 

168 827 

271 900 

206 211 

123 225 

292 427 

393 955 

420 294 

Generation 

_ 


— 

— 




Transmission & Reticulation 

166 234 

271 900 

206 211 

123 225 

292 427 

393 955 

420 294 

Street Lighting 

2 593 


- 

- 

- 

- 

- 

Infrastructure: Water - Total 

17 823 

97 280 

90 595 

60 795 

139 500 

115 150 

138 000 

Dams & Reservoirs 

8 514 


- 

- 

4 500 

7 200 

7 500 

Water purification 

181 


- 

- 




Reticulation 

9 128 

97 280 

90 595 

60 795 

135 000 

107 950 

130 500 

Infrastructure: Sanitation - Total 

130 379 

228 350 

142 277 

122 827 

25 700 

31700 

43 000 

Reticulation 

3 085 

94 850 

142 277 

122 827 

16 200 

22 400 

36 000 

Sewerage purification 

127 294 

133 500 

- 

- 

9 500 

9 300 

7 000 

Infrastructure: Other - Total 

72 536 

186 350 

338 117 

153 161 

94 210 

117 348 

137 190 

Waste Management 

13 967 


- 

- 

- 

1673 

7 000 

Transportation 

8 271 

115 950 

192 212 

84 794 

94 210 

115 675 

130 190 

Gas 

_ 

5 400 

5 400 

5 392 




Other 

50 298 

65 000 

140 505 

62 975 

- 

- 

- 










Table continued next page 


326 I P a g e 




Communitv 

143 609 

91 671 


Parks & gardens 

5 584 

4 235 


Sportsfields & stadia 

19 501 

25 420 


Swimming pools 

4 720 

14 592 


Community halls 

4 496 

2 163 


Libraries 

10 052 

11 989 


Recreational facilities 

93 573 



Fire, safety & emergency 


32 372 


Security and policing 

_ 



Buses 

_ 



Clinics 

_ 



Museums & Art Galleries 

310 

450 


Cemeteries 

5 373 

450 


Social rental housing 

_ 



Other 

_ 








Buildings 

Other 


7 478 
7 478 


11 250 
11 250 


34 


81 972 

62 566 

120 598 

141 016 

140 079 

5 473 

16 777 

13 437 

17 100 

20 400 

24 251 

16 562 

8 519 

9 300 

18 320 

10 000 

4 102 

16 868 

26 861 

8 000 

4 383 

1 218 

3 129 

4 653 

5 679 

13 109 

12 246 

8 970 

10 000 

23 600 

- 

- 




21063 

9 199 

18 448 

33 306 

21 280 

— 

— 




— 

— 




— 

— 

16 000 

16 000 

— 

788 

699 

30 270 

21546 

35 600 

2 755 

1763 

2 107 

1800 

4 000 

— 

— 




150 

— 

2 850 

450 

3 200 






- 

1 227 

- 

- 

- 

- 

1 227 

- 

- 

- 

— 

— 

— 

— 

— 


327 I P a g e 



335 


Table continued from previous page 


Capital Expenditure - Upgrade/Renewal Programme* 

R'OOO 

Description 

2012/13 

2013/14 

Planned Capital expenditure 

Actual 

Original Budget 

Adjustment 

Budget 

Actual 

Expenditure 

FY + 1 

FY + 2 

FY + 3 

Capital expenditure bv 








Asset Class 

Investment orooerties 

- 

- 

- 

- 

- 

- 

- 

Housing development 








Other 
















Other assets 

233 330 

376 985 

257 797 

349 678 

474 101 

764 543 

855 665 

General vehicles 

27 139 

29 900 

- 

- 

- 

- 

- 

Specialised vehicles 

44 452 

4 500 

4 500 

36 487 


9 801 

9 530 

Plant & equipment 

24 823 

23 256 

35 370 

29 075 




Computers 

hardware/equipment 

3 632 

900 

900 

2 319 




Furniture and other office 
equipment 

1 280 

711 

3 269 

1099 




Abattoirs 

- 


- 

- 

2 430 

- 

- 

Markets 

7 264 

3 420 

3 420 

2 529 




Civic Land and Buildings 

- 


- 

- 




Other Buildings 

54 553 

117 601 

50 231 

93 772 




Other Land 

- 

8 087 

8 087 

73 




Surplus Assets 

(Investment or Inventory) 

— 


— 

— 

— 

— 

— 

Other 

70 187 

188 610 

152 021 

184 324 

471671 

754 742 

846 135 









Agricultural assets 

- 

- 


- 

- 

- 

- 


328 I P a g e 





!6 














- 

- 

- 

- 













4 169 

2 700 

5 150 

7 000 

4 169 

2 700 

5 150 

7 000 

- 








1 617 933 

1 808 056 

2 193 248 

2 442 370 





36 487 

- 

- 

- 









36 487 

- 

- 

- 







329 I P a g e 




337 


APPENDIX I: REVENUE COLLECTION PERFORMANCE BY VOTE 


Revenue Collection Performance by Vote 

R' 000 

Vote Description 

2012/2013 

Current Year 2013/2014 

2013/14 Variance 

Actual 

Original Budget 

Adjusted 

Budget 

Actual 

Original Budget 

Adjustments Budget 

Vote 1 - Office of the City Manager 

191 915 

165 490 

167 794 

340 599 

106% 

103% 

Vote 2 - Finance 

7 523 409 

8 580 754 

8 163 904 


2% 

8% 

Vote 3 - Governance 

4 703 

5 849 

6 849 

23 593 

303% 

244% 

Vote 4 - Corporate and Fluman 

Resources 

2 184 

29 200 

29 782 

76 947 

164% 

158% 

Vote 5 - Economic development and 
planning 

277 192 

114 931 

190 903 

233 184 

103% 

22% 

Vote 6 - Community and emergency 
services 

170 388 

309 184 

300 307 

175 424 

-43% 

-42% 

Vote 7 - Human settlements and 

infrastructure 

3 038 372 

4 466 882 

4 072 410 

4122 691 

-8% 

1% 

Vote 8 - Electricity 

9 956 700 

10 382 442 

10 538 761 

10 554 315 

2% 

0% 

Vote 9 - Water 

2 982 873 

3 588 648 

3 594 857 

4 068 566 

13% 

13% 

Vote 10 - Formal Housing 

84 860 

332 927 

98 928 

114 183 

-66% 

15% 

Vote 11 - Markets 

70 627 

72 370 

72 370 

78 951 

9% 

9% 

Vote 12 - Alport 

6 065 

7 626 

7 714 

7 345 

-4% 

-5% 

Vote 13 - Chief Albert Luthuli International 

Centre 

165 576 

143 000 

151 200 

163 056 

14% 

8% 

Vote 14 - Ushaka Marine World 

170 880 

181 876 

181 684 

183 926 

1% 

1% 

EThekwini Transport Authority 

5 639 

- 

- 

6 195 



Effingham/Link Road Joint Venture 

3 349 

- 

- 

21477 



Less internal income 




(2 487 740) 



Total Revenue by Vote 

24 654 732 

28 381 179 

27 577 463 

26 464 524 

-7% 

-4% 


Source table A3 MTREF- Revenue per vote page 118 
Refer to page 63 table A4 MTREF 


330 I P a g e 


338 


APPENDIX J: REVENUE COLLECTION BY 
SOURCE 



331 I P a g e 



340 


APPENDIX K: DECLARATION OF LOANS AND GRANTS BY MUNICIPALITY 


APPENDIX K: DECLARATION OF LOANS AND GRANTS BY MUNICIPALITY 

Declaration of Loans and Grants made by the municipality 2013/14 

All Organisation or Person in 
receipt of Loans*/ Grants * 
provided by the municipality 

Nature of project 

Conditions 

attached to 

Funding 

Value 2013/14 

R'OOO 

Total Amount committed 
over previous and future 
years 






African renaissance 

Initiated by the Premier for the purpose of enhancing international co- 
operation with and on the African Continent and to confirm the Republic 
of South Africa's commitment to Africa. 

Nil 

424 

0 

Durban arts Association 

To promote arts with the greater eThekwini area for the benefit of all, as 
envisaged in Plan Six of the IDP 

Council 

Resolution 

336 

2390 

Food Aid program 

Food Aid Program is a feeding scheme that feed poverty stricken 
communities especially in the rural areas and there are 36 Soup Kitchens in 
various wards within Ethekwini. 

Nil 

12 203 

0 

Grant in Aid 

Funeral Assistance to unaffordable members of the Community 

Nil 

165 

0 

Financial assistance for underpriveleged University students 

Nil 

830 

0 

Establishment of LED businesses that will create job opportunities 
for the surrounding community through the construction of an 
overall factory in partnership with Johnsons and the Lungisisa Indlela 
Village . (LIV) 

As per Grant 
agreement 

4 401 

Nil 


332 I P a g e 




341 



Assistance to non profit organizations and bodies to undertake their work 
as defined in their constitution, thereby ultimately improving the quality of 
life of the people of those communities. 

Nil 

4 368 

0 

Grant in Aid- General 

To promote arts with the greater eThekwini area for the benefit of all, as 
envisaged in Plan Six of the IDP 

As per MOA 

5 333 

4010 

Grant-in-Aid: Twilan 

The Council pays for the water, electricity & sewerage charges due by the 
Umhianga Senior Citizens Association (Twilanga Retirement Village). This is 
based on a 99-year long lease agreement between the Council and the 
association. 

The association 

shall use the 

leased land for 
the sole purposes 
of providing 
housing, 
accommodation 

and facilities for 
aged persons. 

900 

Amount paid is based on 
monthly 

consumption(water, 
electricity and sewerage 
charges) 

Natal Philharmonic 

Orchestra 

To promote the development of orchestral and other forms of music 

As per MOA 

7 816 

7 816 

Natal Society of Arts 

To promote the development of orchestral and other forms of music 

Lease Agreement 

107 

172 

Playhouse Company 

Arts as a catalyst for for social cohesion 

As per MOA 

3 803 

3 803 

Point precinct Trust 

To maintain the public land , including the roadways , public open 
spaces , sidewalks and promenades within the Point Precinct. 

Annual grant 
per MOA. 

2 027 

Nil 

SAAMBR- Subsidy 

To manage the day to day operations of the Marine Park component 
of uShaka Marine World including marine research and education. 

Annual grant 
per MOA. 

56 469 

Nil 

Sporting bodies- 
General(Rates) 

Payment of Rates 

As per Lease 

234 

448 


333 I P a g e 



342 


Sporting bodies- 
General(Rent) 

Payment of Rent 

As per Lease 

45 891 

10162 

Stable Theatre 

To promote arts with the greater eThekwini area for the benefit of all, as 
envisaged in Plan Six of the IDP 

As per Lease 

446 

334 

Subsidy Enhanced 

Expenditure 

To promote ownership of houses to the public. This serves as a discount 
when the ownership is being transferred through sale to the public. 

Nil 

3 496 

Nil 

Poverty Alliviation 

This relates to the engagement of emerging co operatives for bush clearing 
. Once they become established there will be considered for inclusion in 
panel of co-operatives to be approved by BAG. 

Nil 

3 187 

Nil 

Sundry Adhoc Grant 

To provide support to organizations and bodies thereby enabling them to 
undertake actions and services to improve the standard of living of the 
communities, resulting in an improvement in the quality of life for those 
communities. These are for individuals and organations as and when 
requestes are received. 

Nil 

162 

Nil 

Tourism: Indaba 

Africas largest travel and trade shows. 

Nil 

15 658 


Trade Point: Durban 

To provide very valuable support to the Unit in promoting emerging 
exporters with market access both to domestic and international 
markets. 

Nil 

1 058 

Nil 

Total 



169 312 


* Loans/ Grants- whether in cash or in kind 


334 I P a g e 




344 


APPENDIX L: MUNICIPAL/ENTITY FUNCTIONS 


Municipal/ Entity Functions 

APPENDIX L 

MUNICIPAL FUNCTIONS 

Function Applicable to 
Municipality (Yes/No)* 

Function 

Applicable to 

Entity (Yes/No) 

Constitution Schedule 4, Part B functions: 



Air pollution 

Yes 

No 

Building regulations 

Yes 

No 

Child care facilities 

No 

No 

Electricity and gas reticulation 

Yes 

No 

Firefighting services 

Yes 

No 

Local tourism 

Yes 

Yes Ushaka/ICC 

Municipal airports 

Yes 

No 

Municipal planning 

Yes 

No 

Municipal health services 

Yes 

No 

Municipal public transport 

Yes 

No 

Municipal public works only in respect of the needs of 
municipalities in the discharge of their responsibilities to 
administer functions specifically assigned to them under 
this Constitution or any other law 

No(Except Extended 
Public Works 

Programme) 

No 

Pontoons, ferries, jetties, piers and harbours, excluding 
the regulation of international and national shipping and 
matters related thereto 

No( Except piers) 

No 

Stormwater management systems in built-up areas 

Yes 

No 

Trading regulations 

Yes 

No 

Water and sanitation services limited to potable water 
supply systems and domestic waste-water and sewage 
disposal systems 

Yes 

No 

Continued next page 


335 I P a g e 




345 


Municipal/ Entity Functions 

MUNICIPAL FUNCTIONS 

Function Applicable to 
Municipality (Yes/No)* 

Function Applicable 
to Entity 

Constitution Schedule 5, Part B functions: 



Beaches and amusement facilities 

Yes 

Yes -Ushaka 

Billboards and display of advertisements in public places 

Yes 

No 

Cemeteries, funeral parlours and crematoria 

Yes 

No 

Cleansing 

Yes 

No 

Control of public nuisances 

Yes 

No 

Control of undertakings that sell liquor to the public 

Yes 

No 

Facilities for the accommodation, care and burial of 
animals 

no 

No 

Fencing and fences 

Yes(municipal) 

No 

Licensing of dogs 

No 

No 

Licensing and control of undertakings that sell food to the 
public 

Yes 

No 

Local amnesties 

Yes 

No 

Local sport facilities 

Yes 

No 

Markets 

Yes 

No 

Municipal abattoirs 

No 

No 

Municipal parks and recreation 

Yes 

No 

Municipal roads 

Yes 

No 

Noise pollution 

Yes 

No 

Pounds 

No 

No 

Public places 

Yes 

No 

Refuse removal, refuse dumps and solid waste disposal 

Yes 

No 

Street trading 

Yes 

No 

Street lighting 

Yes 

No 

Traffic and parking 

Yes 

No 


336 I P a g e 




346 


Volume Two 


EThebwini Municipality and its Municipal 
Entities Annual Consolidated Annual 

Financial Statements 2013/2014 


337 I P a g e 



347 



eThekwini Municipality and its Municipal Entities 
Annual Financial Statements 
for the year ended 30 June, 2014 

Registered Auditors 


338 I P a g e 




348 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

INDEX 


The reports and statements set out below comprise the annual financial statements presented to the Councillors: 


INDEX PAGE 

Statement of Financial Position 3 

Statement of Changes in Net Assets 5 

Statement of Financial Performance 4 

Cash Flow Statement 6 

Appropriation Statement 7-12 

Accounting Policies 13-30 

Notes to the Annual Financial Statements 31 - 104 

Appendixes: 

Appendix A: Segmental analysis of Property, Plant and Equipment 105 

Appendix B: Segmental Statement of Financial Performance 107 

Appendix C: Disclosure of Grants and Subsidies in terms of the Municipal Finance 1 09 

Management Act 

Appendix D: Moses Mabhida Stadium - Statement of Financial Performance 110 

ABBREVIATIONS 


COID 

CRR 

DBSA 

SA GAAP 

GRAP 

GAMAP 

HDF 

IAS 

IMFO 

IPSAS 

MB's 

MEC 


Compensation for Occupational Injuries and Diseases 
Capital Replacement Reserve 
Development Bank of South Africa 

South African Statements of Generally Accepted Accounting Practice 

Generally Recognised Accounting Practice 

Generally Accepted Municipal Accounting Practice 

Flousing Development Fund 

International Accounting Standards 

Institute of Municipal Finance Officers 

International Public Sector Accounting Standards 

Municipal Entities 

Member of the Executive Council 


MFMA Municipal Finance Management Act 

MIG Municipal Infrastructure Grant (Previously CMIP) 


1 





349 


eThekwini Municipality and it’s Municipal Entities 

Annual Financial Statements for the year ended 30 June 2014 


Municipal Manager 


I am responsible for the preparation of these annual financial statements, which are set out on 
pages 3 to 104, in terms of Section 126(1) of the Municipal Finance Management Act, Act 56 of 
2003 and which 1 have signed on behalf of the Municipal!^. 


I certify that the salaries, allowances and benefits of Councillors as disclosed in note 30 of these 
consolidated annual financial statements are within the upper limits of the framework envisaged 
in Section 219 of the Constitution, read with the Remuneration of Public Officer Bearers Act and 
the Minister of Provincial and Local Government’s determination in accordance with this Act. 



Durban 

10 December 2014 


2 


350 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Statement of Financial Position as at June 30, 2014 




Group 

Municipality 

Figures in Rand 

Note(s) 

2014 2013 

Restated* 

2014 2013 

Restated* 


Assets 


Current Assets 


Inventories 

2 

389,622 

284,016 

341,913 

233,332 

Investments 

3 

3,550,000 

4,350,000 

3,550,000 

4,350,000 

Receivables from exchange transactions 

4 

2,576,289 

2,234,786 

2,561,688 

2,222,229 

VAT receivable 

5 

94,464 

22,729 

95,765 

23,312 

Consumer debtors 

6 

2,879,048 

2,924,428 

2,882,059 

2,927,847 

Current Portion of Long - term Receivables 

7 

7,139 

73,183 

7,139 

73,183 

Call Investment Deposits 

8 

2,599,940 

547,900 

2,405,000 

375,000 

Bank balances and cash 

9 

1,067,314 

1,066,519 

996,029 

979,463 



13,163,816 

11,503,561 

12,839,593 

11,184,366 

Non-Current Assets 






Investment property 

10 

328,723 

328,510 

260,958 

258,039 

Property, plant and equipment 

11 

38,113,209 

35,740,887 

37,084,494 

34,668,703 

Intangible assets 

12 

773,544 

692,355 

771,849 

690,605 

Fleritage assets 

13 

10,512 

9,658 

10,512 

9,658 

Investments in Municipal entities 

14 

- 

- 

583,434 

526,324 

Interest in joint ventures 

15 

- 

- 

61,679 

81,596 

Loans to Municipal Entities 

16 

- 

- 

226,590 

72,049 

Investments 

3 

500,000 

500,000 

500,000 

500,000 

Deferred Income 


5,734 

4,899 

- 

- 

Long Term Receivables 

7 

91,704 

153,966 

91,704 

153,966 



39,823,426 

37,430,275 

39,591,220 

36,960,940 

Total Assets 


52,987,242 

48,933,836 

52,430,813 

48,145,306 

LIABILITIES 






Current Liabilities 






External Borrowings 

17 

993,039 

957,999 

992,214 

957,240 

Payables from exchange transactions 

18 

5,733,200 

4,863,737 

5,740,769 

4,871,330 

Consumer deposits 

19 

1,533,178 

1,293,879 

1,511,191 

1,274,512 

Employee benefit obligation 

20 

155,764 

162,850 

155,764 

162,850 

Unspent conditional grants and receipts 

21 

1,328,247 

1,039,265 

1,328,247 

1,039,265 

Provisions 

22 

94,474 

47,901 

89,870 

43,410 

Bank overdraft 

9 

857,562 

904,710 

857,562 

904,710 



10,695,464 

9,270,341 

10,675,617 

9,253,317 


Non-Current Liabilities 


External Borrowings 

17 

9,376,543 

9,042,021 

9,255,502 

8,929,548 

Employee benefit obligation 

20 

2,659,382 

2,725,419 

2,659,382 

2,725,419 

Provisions 

22 

739,165 

366,371 

739,165 

366,371 




12,775,090 

12,133,811 

12,654,049 

12,021,338 

Total Liabilities 


23,470,554 

21,404,152 

23,329,666 

21,274,655 

Net Assets 


29,516,688 

27,529,684 

29,101,147 

26,870,651 

Flousing development fund 

Accumulated surplus 

23 

170,364 

29,346,324 

260,454 

27,269,230 

170,364 

28,930,783 

260,454 

26,610,197 

Total Net Assets 


29,516,688 

27,529,684 

29,101,147 

26,870,651 



See Note 51 & 41 


3 



















351 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


STATEMENT OF FINANCIAL PERFORMANCE 




Group 

Municipality 

Figures in Rand 

Note(s) 

2014 

2013 

2014 

2013 




Restated* 


Restated* 

Revenue 






Revenue from exchange transactions 






Service charges 

24 

13,076,734 

12,467,301 

13,112,696 

12,499,079 

Rental of facilities and equipment 


532,028 

507,383 

437,218 

421,816 

Licences and permits 


41,337 

42,836 

41,337 

42,836 

Reversal of loss on Impairment 


314 

2,649 

314 

2,364 

Other income 

25 

2,375,798 

2,247,960 

2,154,471 

2,046,220 

Reversal of Impairment: Municipal Entities 


- 

- 

211,651 

72,049 

Interest received 

26 

477,911 

416,683 

463,358 

404,181 

Gains on disposal of assets 


17,739 

12,380 

17,666 

12,343 

Fair value adjustments 

34 

196 

20,842 

66 

20,842 

Total revenue from exchange transactions 


16,522,057 

15,718,034 

16,438,777 

15,521,730 

Revenue from non-exchange transactions 






Taxation revenue 






Fines 


248,511 

240,604 

248,511 

240,604 

Property rates 

27 

5,298,905 

4,918,885 

5,308,509 

4,923,532 

Property rates - penalties imposed 


144,180 

69,002 

144,180 

69,002 

Donations - PPE 


706 

2,641 

706 

2,641 

Transfer revenue 






Government grants & subsidies 

28 

4,232,395 

3,657,750 

4,232,396 

3,657,750 

Public contributions and donations 


17,770 

47,816 

15,083 

45,329 

Total revenue from non-exchange transactions 


9,942,467 

8,936,698 

9,949,385 

8,938,858 

Total revenue 


26,464,524 

24,654,732 

26,388,162 

24,460,588 

Expenditure 






Employee related costs 

29 

(6,893,729) 

(6,021,630) 

(6,780,566) 

(5,911,639) 

Remuneration of councillors 

30 

(94,721) 

(84,713) 

(94,721) 

(84,713) 

Amortisation - Intangible assets 


(43,821) 

(42,027) 

(42,891) 

(41,314) 

Loss on Impairment of Investment in Municipal Entity 


- 

- 

- 

(117,689) 

Depreciation - Property, Plant and Equipment 


(1,680,789) 

(1,627,759) 

(1,613,564) 

(1,565,183) 

Impairment Loss - Property, Plant and Equipment 


(11,815) 

(20,734) 

(11,815) 

(20,648) 

Finance costs 

31 

(857,206) 

(942,081) 

(850,203) 

(935,694) 

Debt impairment 


(1,618,726) 

(1,064,847) 

(1,617,118) 

(1,064,769) 

Depreciation - Investment Properties 


(4,544) 

(4,532) 

(1,844) 

(1,756) 

Repairs and maintenance 


(2,019,123) 

(1,780,196) 

(2,004,492) 

(1,768,117) 

Bulk purchases 

32 

(7,839,588) 

(7,557,474) 

(7,839,588) 

(7,557,474) 

Contracted services 


(1,321,665) 

(1,117,702) 

(1,307,607) 

(1,104,519) 

Grants and subsidies paid 

33 

(166,133) 

(171,574) 

(169,000) 

(174,304) 

Flousing - Development Expenditure 


(513) 

(391) 

(513) 

(391) 

Loss on disposal of assets 


(656) 

(5,686) 

(197) 

(4,940) 

Fair value adjustments 

34 

(9,714) 

(1,098) 

(9,714) 

(1,098) 

General Expenses 

35 

(1,914,777) 

(1,676,046) 

(1,828,916) 

(1,596,696) 

Total expenditure 


(24,477,520) 

(22,118,490) 

(24,172,749) 

(21,950,944) 

Operating surplus 


1,987,004 

2,536,242 

2,215,413 

2,509,644 

Share of Income from Joint Venture 

15 

- 

- 

15,083 

1,231 


Surplus for the year 


1,987,004 

2,536,242 

2,230,496 

2,510,875 


* See Note 51 & 41 


4 









352 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


STATEMENT OF CHANGES IN NET ASSETS 



Housing 

Accumulated 

Total net assets 


development 

surplus 


Figures in Rand 

fund 



Group 

Opening balance as previously reported 

Adjustments 

260,454 

25,095,596 

25,356,050 

Prior year adjustments (prior to 2012/13) 

- 

(362,603) 

(362,603) 

Balance at July 01, 2012 as restated* 

Changes in net assets 

260,454 

24,732,993 

24,993,447 

Surplus for the year as previously reported 

- 

2,729,934 

2,729,934 

Total changes 

- 

2,729,934 

2,729,934 

Opening balance as previously reported 

Adjustments 

260,454 

27,462,927 

27,723,381 

Prior year adjustments (2012/13) 

- 

(193,697) 

(193,697) 

Restated* Balance at July 01, 2013 as restated* 

Changes in net assets 

260,454 

27,269,230 

27,529,684 

Surplus for the year 

- 

1,987,004 

1,987,004 

Transfer: Flousing Development Fund 

(90,090) 

90,090 

- 

Total changes 

(90,090) 

2,077,094 

1,987,004 

Balance at June 30, 2014 

170,364 

29,346,324 

29,516,688 

Note(s) 




Municipality 

Opening balance as previously reported 

Adjustments 

260,454 

24,483,984 

24,744,438 

Prior year adjustments (prior to 2012/13) 

- 

(384,656) 

(384,656) 

Balance at July 01, 2012 as restated* 

Changes in net assets 

260,454 

24,099,328 

24,359,782 

Surplus for the year as previously reported 

- 

2,702,931 

2,702,931 

Total changes 

- 

2,702,931 

2,702,931 

Opening balance as previously reported 

Adjustments 

260,454 

26,802,259 

27,062,713 

Prior year adjustments (2012/13) 

- 

(192,062) 

(192,062) 

Restated* Balance at July 01, 2013 as restated* 

Changes in net assets 

260,454 

26,610,197 

26,870,651 

Surplus for the year 

- 

2,230,496 

2,230,496 

Transfer: Flousing Development Fund 

(90,090) 

90,090 

- 

Total changes 

(90,090) 

2,320,586 

2,230,496 

Balance at June 30, 2014 

170,364 

28,930,783 

29,101,147 

Note(s) 


See Note 51 & 41 


5 




















353 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Cash Flow Statement 




Group 

Municipality 

Figures in Rand 

Note(s) 

2014 2013 

Restated* 

2014 2013 

Restated* 


Cash flows from operating activities 
Receipts 


Ratepayers, Government and other 

Interest income 


24,642,304 

477,911 

23,777,973 

416,683 

24,428,432 

463,358 

23,666,955 

404,181 



25,120,215 

24,194,656 

24,891,790 

24,071,136 

Payments 

Employee costs and suppliers 

Finance costs 


(19,221,172) 

(857,206) 

(19,036,652) 

(942,081) 

(19,057,266) 

(850,203) 

(18,890,884) 

(935,694) 



(20,078,378) 

(19,978,733) 

(19,907,469) 

(19,826,578) 

Net cash fiows from operating activities 

36 

5,041,837 

4,215,923 

4,984,321 

4,244,558 


Cash fiows from investing activities 


Purchase of property, plant and equipment 

Proceeds from sale of property, plant and equipment 
Purchase of other intangible assets 

Purchases of heritage assets 

Decrease in Joint Venture Loan account 
(Increase) / decrease in non-current receivables 

11 

11 

12 

13 

15 

(4,086,147) 

34,768 

(125,012) 

(857) 

65,832 

(2,828,210) 

24,808 

(72,009) 

(149) 

(22,124) 

(4,062,058) 

34,685 

(124,137) 

(857) 

35,000 

65,832 

(2,802,448) 

25,057 

(71,303) 

(149) 

(96,464) 

Net cash flows from investing activities 


(4,111,416) 

(2,897,684) 

(4,051,535) 

(2,945,307) 

Cash flows from financing activities 

Proceeds from external borrowings 


1,509,589 

8,205 

1,500,000 

- 

Repayment of external borrowings 


(1,140,027) 

(792,218) 

(1,139,072) 

(792,218) 

Net cash flows from financing activities 


369,562 

(784,013) 

360,928 

(792,218) 

Net increase/(decrease) in cash and cash 


1,299,983 

534,226 

1,293,714 

507,033 

equivalents 

Cash and cash equivalents at the beginning of the year 


5,559,709 

5,025,483 

5,299,753 

4,801,196 

Cash and cash equivalents at the end of the year 

9 

6,859,692 

5,559,709 

6,593,467 

5,308,229 


See Note 51 & 41 


6 

















354 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Appropriation Statement 


Figures in Rand 

Original 

Budget 

Final 

Shifting of 

Virement Final budget Actual 

Unauthorised Variance 

Actual 

Actual 


budget 

adjustments 

adjustments 

funds (i.t.o. 

(i.t.o. council outcome 

expenditure 

outcome 

outcome 



(i.t.o. s28 and budget 

s31 of the 

approved 


as % of 

as % of 



s31 of the 


MFMA) 

policy) 


final 

original 



MFMA) 





budget 

budget 


Group - 2014 


Financial Performance 

Property rates 

5,136 

Service charges 

14,216 

Investment revenue 

374 

Transfers recognised - 
operational 

2,359 

Other own revenue 

3,110 

Total revenue 

25,197 

(excluding capital 
transfers and 


contributions) 



,991 

- 

5,136,991 

,000 

- 

14,216,000 

,237 

2,601 

376,838 

,637 

(186,727) 

2,172,910 

,885 

6,558 

3,117,443 


,750 (177,568) 25,020,182 



5,136,991 

14,216,000 

376,838 

2,172,910 

3,117,443 

25,020,182 


5,298,905 

13,076,734 

477,911 

2,191,385 

3,378,579 

24,423,514 



161,914 

(1,139,266) 

101,073 

18,475 

261,136 

(596,668) 


103 

% 

103 

% 

92 

% 

92 

% 

127 

% 

128 

% 

101 

% 

93 

% 

108 

% 

109 

% 

98 

% 

97 

% 


Employee costs 
Remuneration of 
councillors 
Debt impairment 
Depreciation and asset 
impairment 
Finance charges 
Materials and bulk 
purchases 


(6,681,852) 

(104,516) 

(536,625) 

(1,842,045) 

(1,168,516) 

(8,051,963) 


(10,516) (6,692,368) 

9,675 (94,841) 


(6,692,368) (6,893,729) 

(94,841) (94,721) 


(290) 

47,491 

67,893 

(63,212) 


(536,915) 

(1,794,554) 



(1,100,623) 

(8,115,175) 


(536,915) 

(1,794,554) 

(1,100,623) 

(8,115,175) 


(1,618,726) 

(1,740,969) 

(857,206) 

(7,839,588) 


(201,361) 

103 

% 

103 

% 

120 

100 

% 

91 

% 

(1,081,811) 

301 

% 

302 

% 

53,585 

97 

% 

95 

% 

243,417 

78 

% 

73 

% 

275,587 

97 

% 

97 

% 


Transfers and grants 
Other expenditure 

(203,713) 

(6,386,845) 

29,779 

225,509 

(173,934) 

(6,161,336) 

(173,934) 

(6,161,336) 

(166,133) 

(5,266,448) 

7,801 

894,888 

96 % 

85 % 

82 % 
82 % 

Total expenditure 

(24,976,075) 

306,329 

(24,669,746) 

- (24,669,746) 

(24,477,520) 

192,226 

99 % 

98 % 

Surplus/(Deficit) 

221,675 

128,761 

350,436 

- 

(54,006)^^1 

(404,442) 

(15)% 

(15)% 


7 


355 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Appropriation Statement 


Figures in Rand 

Original 

Budget 

Final 

Shifting of 

Virement Final budget Actual 

Unauthorised Variance 

Actual 

Actual 


budget 

adjustments 

adjustments 

funds (i.t.o. 

(i.t.o. council outcome 

expenditure 

outcome 

outcome 



(i.t.o. s28 and budget 

s31 of the 

approved 


as % of 

as % of 



s31 of the 


MFMA) 

policy) 


final 

original 



MFMA) 





budget 

budget 


Transfers recognised - 
capital 

3,183,431 

(626,150) 

2,557,281 

- 


2,557,281 

2,041,010 


(516,271) 

80 % 

64 % 

Surplus (Deficit) after 
capital transfers and 
contributions 

3,405,106 

(497,389) 

2,907,717 



2,907,717 

1,987,004 


(920,713) 

68 % 

58 % 

Surplus/(Deficit) for the 
year 

3,405,106 

(497,389) 

2,907,717 

" 


2,907,717 

1,987,004 


(920,713) 

68 % 

58 % 


Capital expenditure and funds sources 


Total capital expenditure 

5,466 

Sources of capital 


funds 


Transfers recognised - 

3,183 

capital 


Borrowing 

1,000 

Internally generated 

1,283 

funds 



,766 

(722,114) 

4,744,652 

,431 

(626,150) 

2,557,281 

,000 

500,000 

1,500,000 

,335 

(595,964) 

687,371 


Total sources of capital 5,466,766 (722,114) 4,744,652 

funds 


4,744,652 


4,201,662 


(542,990) 89 % 77 % 



2,557,281 

1,500,000 

687,371 


4,744,652 


2,041,010 

1,500,000 

660,612 


4,201,622 



(516,271) 

80 % 

64 % 

_ 

100 % 

150 % 

(26,759) 

96 % 

51 % 

(543,030) 

89 % 

77 % 


8 


356 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Appropriation Statement 


Figures in Rand 

Original 

Budget 

Final 

Shifting of 

Virement Final budget Actual 

Unauthorised Variance 

Actual 

Actual 


budget 

adjustments 

adjustments 

funds (i.t.o. 

(i.t.o. council outcome 

expenditure 

outcome 

outcome 



(i.t.o. s28 and budget 

s31 of the 

approved 


as % of 

as % of 



s31 of the 


MFMA) 

policy) 


final 

original 



MFMA) 





budget 

budget 


Cash flows 


Net cash from (used) 5,546,506 (342,541) 5,203,965 

operating 

Net cash from (used) (4,925,758) 178,900 (4,746,858) 

investing 

Net cash from (used) (101,872) 500,002 398,130 

financing 


5,203,965 5,041,837 

(4,746,858) (4,111,416) 

398,130 369,562 


(162,128) 97 % 91 % 

635,442 87 % 83 % 

(28,568) 93 % (363)% 

Net increase/(decrease) 518,876 336,361 855,237 

in cash and cash 

equivalents 


855,237 1,299,983 


444,746 152 % 251 % 

Cash and cash 4,786,848 500,002 5,286,850 

equivalents at the 
beginning of the year 


5,286,850 5,559,709 


272,859 105 % 116% 

Cash and cash 5,305,724 836,363 6,142,087 

equivalents at year end 


6,142,087 6,859,692 


717,605 112 % 129% 


9 


357 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Appropriation Statement 


Figures in Rand 

Original 

Budget 

Final 

Shifting of 

Virement Final budget Actual 

Unauthorised Variance 

Actual 

Actual 


budget 

adjustments 

adjustments 

funds (i.t.o. 

(i.t.o. council outcome 

expenditure 

outcome 

outcome 



(i.t.o. s28 and budget 

s31 of the 

approved 


as % of 

as % of 



s31 of the 


MFMA) 

policy) 


final 

original 



MFMA) 





budget 

budget 


Municipality - 2014 


Financial Performance 

Property rates 

5,136 

Service charges 

14,216 

Investment revenue 

366 

Transfers recognised - 
operational 

2,359 

Other own revenue 

2,793 

Total revenue 

24,872 

(excluding capital 
transfers and 


contributions) 



,991 

- 

5,136,991 

,000 

- 

14,216,000 

,870 

(71) 

366,799 

,637 

(186,727) 

2,172,910 

,376 

1,222 

2,794,598 


,874 (185,576) 24,687,298 



5,136,991 

14,216,000 

366,799 

2,172,910 

2,794,598 

24,687,298 


5,308,509 

13,112,696 

463,358 

2,191,386 

3,271,203 

24,347,152 



171,518 

(1,103,304) 

96,559 

18,476 

476,605 

(340,146) 


103 

% 

103 

% 

92 

% 

92 

% 

126 

% 

126 

% 

101 

% 

93 

% 

117 

% 

117 

% 

99 

% 

98 

% 


Employee costs 
Remuneration of 
councillors 
Debt impairment 
Depreciation and asset 
impairment 
Finance charges 
Materials and bulk 
purchases 


(6,572,363) 

(104,516) 

(536,625) 

(1,799,485) 

(1,159,456) 

(8,051,963) 


(2,369) (6,574,732) 
9,675 (94,841) 


(6,574,732) (6,780,566) 

(94,841) (94,721) 


(290) 

49,243 

68,293 

(63,212) 


(536,915) 

(1,750,242) 



(1,091,163) 

(8,115,175) 


(536,915) 

(1,750,242) 

(1,091,163) 

(8,115,175) 


(1,617,118) 

(1,670,114) 

(850,203) 

(7,839,588) 


(205,834) 

103 

% 

103 

% 

120 

100 

% 

91 

% 

(1,080,203) 

301 

% 

301 

% 

80,128 

95 

% 

93 

% 

240,960 

78 

% 

73 

% 

275,587 

97 

% 

97 

% 


Transfers and grants 
Other expenditure 

(203,713) 

(6,189,287) 

29,779 

221,360 

(173,934) 

(5,967,927) 

(173,934) 

(5,967,927) 

(169,000) 

(5,151,439) 

4,934 

816,488 

97 % 

86 % 

83 % 
83 % 

Total expenditure 

(24,617,408) 

312,479 

(24,304,929) 

- (24,304,929) 

(24,172,749) 

132,180 

99 % 

98 % 

Surplus/(Deficit) 

255,466 

126,903 

382,369 

- 

174,403 

(207,966) 

46 % 

68 % 


10 


358 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Appropriation Statement 


Figures in Rand 

Originai 

Budget 

Finai 

Shifting of 

Virement Finai budget Actuai 


budget 

adjustments 

adjustments 

funds (i.t.o. 

(i.t.o. councii outcome 



(i.t.o. s28 and budget 

s31 of the 

approved 



s31 of the 
MFMA) 


MFMA) 

poiicy) 


Unauthorised Variance Actuai Actuai 

expenditure outcome outcome 

as % of as % of 
finai originai 
budget budget 


Transfers recognised - 
capital 

3,183,431 

(626,150) 

2,557,281 

- 


2,557,281 

2,041,010 


(516,271) 

80 % 

64 % 

Surplus (Deficit) after 
capital transfers and 
contributions 

3,438,897 

(499,247) 

2,939,650 



2,939,650 

2,215,413 


(724,237) 

75 % 

64 % 

Share of surplus (deficit) 
of associate 

- 

- 

- 

- 


- 

(15,083) 


(15,083) 

DIV/0 % 

DIV/0 % 

Surplus/(Deficit) for the 
year 

3,438,897 

(499,247) 

2,939,650 

- 


2,939,650 

2,230,496 


(709,154) 

76 % 

65 % 


Capitai expenditure and funds sources 


Total capital expenditure 

5,432 

Sources of capital 


funds 


Transfers recognised - 

3,183 

capital 


Borrowing 

1,000 

Internally generated 

1,248 

funds 


Total sources of capital 
funds 

5,432 


,146 

(725,160) 

4,706,986 

,432 

(626,151) 

2,557,281 

,000 

500,000 

1,500,000 

,714 

(599,009) 

649,705 


,146 (725,160) 4,706,986 


4,706,986 


4,201,662 


(505,324) 89 % 77 % 



2,557,281 

1,500,000 

649,705 


4,706,986 


2,041,010 

1,500,000 

660,612 


4,201,622 



(516,271) 

80 % 

64 % 

_ 

100 % 

150 % 

10,907 

102 % 

53 % 


(505,364) 89 % 77 % 


11 


359 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Appropriation Statement 


Figures in Rand 

Original 

Budget 

Final 

Shifting of 

Virement Final budget Actual 

Unauthorised Variance 

Actual 

Actual 


budget 

adjustments 

adjustments 

funds (i.t.o. 

(i.t.o. council outcome 

expenditure 

outcome 

outcome 



(i.t.o. s28 and budget 

s31 of the 

approved 


as % of 

as % of 



s31 of the 


MFMA) 

policy) 


final 

original 



MFMA) 





budget 

budget 


Cash flows 


Net cash from (used) 5,559,008 (292,206) 5,266,802 

operating 

Net cash from (used) (4,891,137) 181,945 (4,709,192) 

investing 

Net cash from (used) (100,893) 500,000 399,107 

financing 


5,266,802 4,984,321 

(4,709,192) (4,051,535) 

399,107 360,928 

1 

(282,481) 95 % 90% 

657,657 86 % 83 % 

(38,179) 90 % (358)% 

Net increase/(decrease) 566,978 389,739 956,717 

in cash and cash 

equivalents 


956,717 1,293,714 


336,997 135 % 228 % 

Cash and cash 4,637,996 - 4,637,996 

equivalents at the 
beginning of the year 


4,637,996 5,299,753 


661,757 114 % 114% 

Cash and cash 5,204,974 389,739 5,594,713 

equivalents at year end 


5,594,713 6,593,467 


(998,754) 118 % 127% 


Refer to note 50 for details. 


12 


360 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

ACCOUNTING POLICIES 


1. Presentation of Annual Financial Statements 

The annual financial statements have been prepared in accordance with the Standards of Generally Recognised 
Accounting Practice (GRAP), issued by the Accounting Standards Board in accordance with Section 122(3) of the 
Municipal Finance Management Act (Act 56 of 2003). 

These annual financial statements have been prepared on an accrual basis of accounting and are in accordance with 
historical cost convention as the basis of measurement, unless specified otherwise. They are presented in South African 
Rand. 

In the absence of an issued and effective Standard of GRAP, accounting policies for material transactions, events or 
conditions were developed in accordance with paragraphs 8, 10 and 1 1 of GRAP 3 as read with Directive 5. 

Entities are required to apply the Standards of GRAP where the Minister has determined the effective date. The Minister 
has determined the effective date for the following Standards of GRAP: 

GRAP 1 Presentation of Financial Statements 
GRAP 2 Cash Flow Statements 

GRAP 3 Accounting Policies, Changes in Accounting Estimates and Errors 
GRAP 4 the Effects of Changes in Foreign Exchange Rates 
GRAP 5 Borrowing Costs 

GRAP 6 Consolidated and Separate Financial Statements 

GRAP 7 Investments in Associates 

GRAP 8 Investment in Joint Ventures 

GRAP 9 Revenue from Exchange Transactions 

GRAP 10 Financial Reporting in Flyperinflationary Economies 

GRAP 1 1 Construction Contracts 

GRAP 12 Inventories 

GRAP 13 Leases 

GRAP 14 Events after the Reporting Date 
GRAP 16 Investment Properties 
GRAP 17 Property, Plant and Equipment 

GRAP 19 Provisions, Contingent Liabilities and Contingent Assets 

GRAP 21 Impairment of Non-cash-generating Assets 

GRAP 23 Revenue from Non-exchange Transactions (Taxes and Transfers) 

GRAP 24 Presentation of Budget Information in Financial Statements 

GRAP 25 Employee Benefits 

GRAP 26 Impairment of Cash-generating Assets 

GRAP 100 Non-current Assets Field for Sale and Discontinued Operations 

GRAP 101 Agriculture 

GRAP 102 Intangible Assets 

GRAP 103 Fleritage Assets 

GRAP 104 Financial Instruments 


13 





361 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

ACCOUNTING POLICIES 


Directives issued and effective: 

Directive 1: Repeal of Existing Transitional Provisions in, and Consequential Amendments to. Standards of GRAP 
Directive 2: Transitional Provisions for the Adoption of Standards of GRAP by Public Entities, Municipal Entities and 
Constitutional Institutions. 

Directive 3: Transitional Provisions for the Adoption of Standards of GRAP by High Capacity Municipalities. 

Directive 5: Determining the GRAP reporting framework. 

Directive 7: The Application of Deemed Cost on the Adoption of Standards of GRAP 
Interpretations of the Standards of GRAP 

IGRAP 1: Applying the Probability Test on Initial Recognition of Exchange Revenue 

IGRAP 2: Changes in Existing Decommissioning, Restoration and Similar Liabilities 

IGRAP 3: Determining whether an Arrangement contains a Lease 

IGRAP 4: Rights to Interests Arising from Decommissioning, Restoration and Environmental Rehabilitation Funds 
IGRAP 5 : Applying the Restatement Approach under the Standard of GRAP on Financial Reporting in Hyperinflationary 

Economies 

IGRAP 6 : Loyalty Programmes 

IGRAP 7 : The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction 

IGRAP 8 : Agreements for the Construction of Assets from Exchange Transactions 

IGRAP 9 : Distributions of Non-cash Assets to Owners 

IGRAP 10: Assets Received from Customers 

IGRAP 13: Operating Leases - Incentives 

IGRAP 14: Evaluating the Substance of Transactions Involving the Legal Form of a Lease 
IGRAP 15: Revenue - Barter Transactions Involving Advertising Services 

Approved guidelines of Standards of GRAP: 

Guide 1: Guideline on Accounting for Public Private Partnerships 

Effective IFRS's and IFRIC's that are applied considering the provisions in paragraphs .20 to .26 of the Directive: 

IFRS 4 (AC 141) Insurance Contracts 

IFRS 6 (AC 143) Exploration for and Evaluation of Mineral Resources 
IAS 12 (AC 102) Income Taxes 

SIC - 25 (AC 425) Income Taxes - Changes in the Tax Status of an Entity or its Shareholders 
SIC - 29 (AC 429) Service Concession Arrangements - Disclosures 
IFRIC 12 (AC 445) Service Concession Arrangements 

Standards of GRAP that an entity may use to disclose information in its financial statements: 

GRAP 20 Related Party Disclosures 

These accounting policies are consistent with the previous period, except for the changes set out in note 41&51 
Changes in accounting policy. 

1.1 Presentation currency 

These annual financial statements are presented in South African Rand, which is the functional currency of the group. 

1.2 Going concern assumption 

These annual financial statements have been prepared on a going concern basis. 

1.3 Housing development fund 

The Housing Development Fund was established in terms of the Housing Act, (Act No. 107 of 1997). Loans from national 
and provincial government used to finance housing selling schemes undertaken by the Municipality were extinguished on 
1 April 1998 and transferred to a Housing Development Fund. Housing selling schemes, both complete and in progress 
as at 1 April 1998, were also transferred to the Housing Development Fund. In terms of the Housing Act, all proceeds 
from housing developments, which include rental income and sales of houses, must be paid into the Housing 
Development Fund. Monies standing to the credit of the Housing Development Fund can be used only to finance housing 
developments within the municipal area subject to the approval of the Provincial MEC responsible for housing. 


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Annual Financial Statements for the year ended June 30, 2014 

ACCOUNTING POLICIES 


1.4 Retirement Benefits 

1.4.1 Short-term empioyee benefits 

The cost of short-term employee benefits, (those payable within 12 months after the service is rendered, such as paid 
vacation leave and sick leave, bonuses, and non-monetary benefits such as medical care), are recognised in the period in 
which the service is rendered and are not discounted. 

The expected cost of compensated absences is recognised as an expense as the employees render services that 
increase their entitlement or, in the case of non-accumulating absences, when the absence occurs. 

The expected cost of bonus payments is recognised as an expense when there is a legal or constructive obligation to 
make such payments as a result of past performance. 

1.4.2 Defined contribution plans 

The municipality provides retirement benefits for its employees and councillors. Payments to defined contribution 
retirement benefit plans are charged as an expense as they fall due. 

Payments made to industry-managed (or state plans) retirement benefit schemes are dealt with as defined contribution 
plans where the municipality’s obligation under the schemes is equivalent to those arising in a defined contribution 
retirement benefit plan. 

The KZN Municipal Pension Fund is a defined contribution fund. The contributions to fund obligations for the payment of 
retirement benefits are charged against income in the year they become payable. 

The Natal Joint Provident Fund, Multi Linked and South African Local Authority are defined contribution funds. 

The Municipality pays contributions to publicly or privately administered pension insurance plans on a mandatory, 
contractual or voluntary basis. The Municipality has no further payment obligations once the contributions have been paid. 
The contributions are recognized as employee benefit expense when they are due. Prepaid contributions are recognised 
as an asset to the extent that a cash refund or a reduction in the future payments is available. 


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eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

ACCOUNTING POLICIES 


1.4 Retirement Benefits (continued) 

1.4.3 Pension obiigations 

The municipality and its employees contribute to 8 different Pension Funds, of which 2 (Durban Pension Fund and the 
KZN Pension Fund) cater for more than 86% of staff. 

The following are defined benefit funds: 

Durban Pension Fund 
Government Employee's Pension Fund 
SALA 

Natal Joint Municipal Pension Fund - Superannuation 
Natal Joint Municipal Pension Fund - Retirement 

The municipality and its employees contribute to 8 different Pension Funds, of which 2 (Durban Pension Fund and the 
KZN Pension Fund) cater for more than 86% of staff. 

The following are defined benefit funds: 

Durban Pension Fund 
Government Employee's Pension Fund 
SALA 

Natal Joint Municipal Pension Fund - Superannuation 
Natal Joint Municipal Pension Fund - Retirement 

The following are defined contribution funds: 

KZN Pension Fund 
Multi Linked 

The other fund is a Provident Fund administered by Natal Joint Municipal Pension Fund. 

Actuarial valuations are conducted on an interim basis each year with a statutory valuation undertaken every three years. 
Consideration is given to any extent that could impact the Funds up to the end of the reporting period where the interim 
valuation is performed at an earlier date. 

Actuarial gains and losses are recognised in the year that they arise, in the Statement of Financial Performance. 

The schemes are funded through payments to insurance companies or trustee-administered funds, determined by 
periodic actuarial calculations. 

The Municipality has both defined benefit and defined contribution plans. 

A defined benefit plan is a pension plan that defines an amount of pension benefit that an employee will receive on 
retirement, usually dependent on one or more factors such as age, years of service and compensation. 

A defined contribution plan is a pension plan under which the Municipality pays fixed contributions into a separate entity. 
The Municipality has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient 
assets to pay all employees the benefits relating to employee service in the current and prior periods. 

The liability/asset recognized in the statement of financial position in respect of defined benefit pension plans is equal to 
the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets, together 
with adjustments for unrecognized actuarial gains or losses and past service costs. The defined benefit obligation is 
calculated annually by independent actuaries using the projected unit credit method. The present value of the defined 
benefit obligation is determined by discounting the estimated future cash outflows using interest rates, best approximated 
by reference to market yields at the reporting date on government bonds that are denominated in the currency in which 
the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability. 
Past-service costs are recognised immediately in the statement of financial performance . 

Any asset is limited to the net total of the present value of the defined benefit obligation at the reporting date minus the 
fair value at the reporting date of plan assets plus any liability that may arise as a result of a minimum funding 
requirement, and the present value of any economic benefits available in the form of refunds from the plan or reductions 
in future contributions to the plan. 

Durban Marine Theme Park (Proprietory)Limited staff are obliged to be members of the Provident Fund which is governed 
by the Pensions Funds Act of 1956. Contributions are based on a percentage of the payroll and charged to the Statement 
of Financial Performance in the year to which they relate. 

All staff of the I.C.C. Durban (Proprietory) Limited are members of the I.C.C. Pension Fund which is a defined contribution 
fund 


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eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

ACCOUNTING POLICIES 


1.4 Retirement Benefits (continued) 

1 .4.4 Other post-empioyment benefit obiigations 

The municipality provides post-retirement healthcare benefits to their retirees. The entitlement to these benefits is usually 
conditional on the employee remaining in service up to retirement age and the completion of a minimum service period. 
The expected costs of these benefits are accrued over the period of employment using an accounting methodology 
similar to that used for defined benefit pension plans. Actuarial gains and losses arising from experience adjustments, and 
changes in actuarial assumptions, are charged or credited to the statement of financial performance in the year that they 
arise. 

Muiti-Empioyer Retirement Benefit Pians 

The Municipality contributes to Government Employees Pension Fund, Natal Joint Super Annuation and Retirement Funds 
which are Defined Benefit Funds. The municipality's liability in these funds could not be determined owing to the fact that 
the assets are not being allocated to each employer and only one set of financial statements are compiled for each fund 
not per employer. Further details of this plan are included in note 20 

1.5 Significant Judgements 

In preparing the annual financial statements, management is required to make estimates and assumptions that affect the 
amounts represented in the annual financial statements and related disclosures. Use of available information and the 
application of judgement is inherent in the formation of estimates. Actual results in the future could differ from these 
estimates which may be material to the annual financial statements. Significant judgements include: 

Post Retirement Benefits and Muiti-Empioyer Retirement Benefit Pians 

The present value of the post retirement obligation depends on a number of factors that are determined on an actuarial 
basis using a number of assumptions. The assumptions used in determining the net cost (income) include the discount 
rate. Any changes in these assumptions will impact on the carrying amount of post retirement obligations. 

The Municipality determines the appropriate discount rate at the end of each year using the actuarial valuation. This is the 
interest rate that should be used to determine the present value of estimated future cash outflows expected to be required 
to settle the pension obligations. In determining the appropriate discount rate, the Municipality considers the interest rates 
that are best approximated by reference to market yields at the reporting date on government bonds that are denominated 
in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the related 
pension liability 

Other key assumptions for pension obligations are based on current market conditions. Additional information is disclosed 
in Note 20. The Municipality contributes to Natal Joint Super Annuation and Retirement Funds which are Defined Benefit 
Funds . The municipality's liability in these funds could not be determined owing to the fact that the assets are not being 
allocated to each employer and only one set of financial statements are compiled for each fund not per employer. Further 
details of this plan is included in note 20 

Provision for impairment of trade receivabies 

The provision for impairment is measured as the difference between the assets' carrying amount and the present value of 
estimated future cash flow based on past recovery trends. 

Non-cash generating and cash generating Impairment testing 

Management used the fair value less cost to sell to determine the recoverable amount of intangible assets with an 
indefinite useful life and identifying assets that may have been impaired. 

All assets owned/recognised by the municipality are held for the provision of basic services and are considered to be non- 
cash generating assets 


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eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

ACCOUNTING POLICIES 


1.5 Significant Judgements (continued) 

Provisions 

Provisions were raised and management determined an estimate based on the information available. Additional 
disclosure of these estimates of provisions are included in note 22 - Provisions. 

Provisions are measured at the directors' best estimate of the expenditure required to settle the obligation at the reporting 
date, and are discounted to present value where the effect is material. 

A provision is recognised when: 

• the municipality has a present obligation (legal or constructive) as a result of a past event; 

• it is probable that an outflow of resources embodying economic benefits will be required to settle 
the obligation; and 

• a reliable estimate can be made of the amount of the obligation. 


1.6 investment property 
initiai Recognition 

Investment property includes property (land or a building, or part of a building, or both land or buildings held under a 
finance lease) held to earn rentals and/or for capital appreciation, rather than held to meet service delivery objectives, the 
production or supply of goods or services, or the sale of an asset in the ordinary course of operations. 

At initial recognition, the Municipality measures investment property at cost including transaction costs once it meets the 
definition of investment property. However, where an investment property was acquired through a non-exchange 
transaction (i.e. where it acquired the investment property for no or a nominal value), its cost is its fair value as at the date 
of acquisition. 

The cost of self-constructed investment property is the cost at date of completion. 

Derecognition and impairment 

Investment property is derecognised on disposal or when the investment property is permanently withdrawn from use and 
no future economic benefits or service potential are expected from its disposal. Gains or losses arising from the 
retirement or disposal of investment property shall be determined as the difference between the net disposal proceeds 
and the carrying amount of the asset and shall be recognised in the Statement of Financial Performance in the period of 
the retirement or disposal. 

Compensation from third parties for investment property that was impaired, lost or given up shall be recognised in the 
Statement of Financial Performance when the compensation becomes receivable. 

The Municipality tests for impairment where there is an indication that a property may be impaired. An assessment of 
whether there is an indication of possible impairment is done during each reporting period. Where the carrying amount of 
an item of an investment property is greater than the estimated recoverable amount (or recoverable service amount), it is 
written down immediately to its recoverable amount (or recoverable service amount) and an impairment loss is charged to 
the Statement of Financial Performance. 

Costs include costs incurred initially and costs incurred subsequently to add to, or to replace a part of, or service a 
property. If a replacement part is recognised in the carrying amount of the investment property, the carrying amount of the 
replaced part is derecognised. 


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Annual Financial Statements for the year ended June 30, 2014 

ACCOUNTING POLICIES 


1.6 Investment property (continued) 

Subsequent Measurement 

Investment property is measured using the cost model. Under the cost model, investment property is carried at cost less 
any accumulated depreciation and any accumulated impairment losses. Transfers to or from investment property are 
made only when there is a change in use. 

Depreciation 

Depreciation is calculated on the depreciable amount, using the straight-line method over the estimated useful lives of the 
assets. Components of assets that are significant in relation to the whole asset and that have different useful lives are 
depreciated separately. The annual depreciation rates are based on the following estimated average asset lives: 

item Usefui iife 

Property - land indefinite 

Property - buildings 1 0 -80 years 

1.7 Property, piant and equipment 

Property, plant and equipment are tangible non-current assets (including infrastructure assets) that are held for use in the 
production or supply of goods or services, to meet service delivery objectives, rental to others, or for administrative 
purposes, and are expected to be used during more than one period. 

Initial Recognition 

Property, plant and equipment is initially measured at cost. 

Where an asset is acquired for no consideration (i.e. through a non-exchange transaction), its cost is deemed to be equal 
to its fair value as at date of acquisition. 

Subsequent Measurement 

Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses. Land is not 
depreciated as it is deemed to have an indefinate useful life. 


Depreciation and Impairment 


Depreciation is calculated on cost , using the straight- line method over the estimated useful lives of the 
assets. Depreciation is calculated as soon as the asset becomes available for its intended use. When significant 
components of an item of property, plant and equipment have different useful lives, they are accounted for as separate 
items (major components) of property, plant and equipment. 


The annual depreciation rates are based on the following estmated useful lives of items of property, plant and equipment : 


item 

Infrastructure 


Average Estimated usefui iife 


Rivers and Coastal Engineering 

20 - 80 years 

Roads and Motorways 

20 - 80 years 

Economic Development 

20 years 

Traffic Equipment 

10-80 years 

Stormwater Drainage 

20 - 80 years 

Airport Infrastructure 

15-80 years 

Solid Waste 

3 - 30 years 

Water and Sanitation 

20 - 80 years 

Major Substations:Buildings 

30 - 50 years 

Transformers and Related Equipment 

30 - 45 years 

Mains 

30 - 55 years 

Street Lighting 

20 - 30 years 

Conventional and Prepaid Metering 

15-25 years 


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eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

ACCOUNTING POLICIES 


1.7 Property, plant and equipment (continued) 

Community 


Buildings 

20 - 80 years 

Recreational Facilities 

10-80 years 

r property, plant and equipment 


Buildings 

20 - 80 years 

Markets and Informal Markets 

15-30 years 

Fire Engines 

20 years 

Landfill Sites 

3 - 30 years 

Car Parks 

1 5 years 

Fencing 

20 years 

Lifts 

20 years 

Building Improvements and Structures 

3-10 years 

Fleavy and Mobile Plant 

7-10 years 

Furniture and fittings 

2 - 20 years 

Vehicle 

3-11 years 

Bins and containers 

5 years 

Security Systems 

5-15 years 

Office equipment 

5 - 7 years 

Air conditioning 

5-15 years 

Public Address Systems 

1 5 years 

Turnstiles 

1 5 years 

Electrical 

20 years 

Mechanical 

20 years 

Hostels 

20 - 80 years 

Library Books 

5-10 years 

Other items of Plant and Equipment 

3 - 5 years 

Biological Assets 

50 - 85 years 


The residual value, and the useful life and depreciation method of each asset are reviewed at the end of each reporting 
date. If the expectations differ from previous estimates, the change is accounted for as a change in accounting estimate. 

All property, plant and equipment are considered to have a nil residual value 

Items of property, plant and equipment are derecognised when the asset is disposed of or when there are no further 
economic benefits or service potential expected from the use of the asset. The gain or loss arising on the disposal or 
retirement of an item of property, plant and equipment is determined as the difference between the net disposal proceeds 
and the carrying value and is recognised in the Statement of Financial Performance. 

The municipality tests for impairment where there is an indication that an asset may be impaired. An assessment of 
whether there is an indication of possible impairment is done at each reporting period. 

Where the Municipality replaces parts of an asset, it derecognises the part od the asset being replaced and capitalises the 
new component.Subsequent expenditure on an asset is capitalised when it increases the capacity or future economic 
benefits associated with the asset. 

The Municipality has an obligation to rehabilitate its landfill sites in terms of its licence stipulations. Provision is made for 
this obligation in accordance with the Municipality's accounting policy on non-current provisions see Accounting Policy on 
Provisions1.25 


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eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

ACCOUNTING POLICIES 


1.8 Standards, amendments to standards and interpretations issued but not yet effective 

GRAP 18: Segment Reporting - issued March 2005: 

Compliance with this standard would have had an effect on the presentation only. Financial information would have 
been reported by segments. The disclosure of this information will assist users of the financial statements to better 
understand the entity’s past performance and to identify the resources allocated to support the major activities of the 
entity. 

GRAP 20: Related Party Disclosures-issued June 201 1 : 

Compliance with this standard would have had an effect on the presentation only. Related party transactions have 
been disclosed in accordance with IPSAS 20. 

GRAP 105: Transfer of functions between entities under common control - issued November 2010: 

Compliance with this standard will not have an impact on the current financial information as no transactions relating 
to the transfer of functions between entities under common control exists in the current year. 

GRAP 106: Transfer of functions between entities not under common control - issued November 2010: 

Compliance with this standard will not have an impact on the current financial information as no transactions relating 
to the transfer of functions between entities not under common control exists in the current year. 

GRAP 107: Mergers - issued November 2010: 

Compliance with this standard will not have an impact on the current financial information as no transactions relating 
to mergers exists in the current year. 

GRAP32:Service Concession Arrangements:Grantor - Issued August 2013: 

Compliance with this standard will not have an impact on the current financial information as no transactions relating to 
service concession arrangements exist in the current year 

GRAP 108:Statutory Receivables -issued September 2013 

Compliance with this standard would have had an effect on presentation and disclosure only. GRAP 108 requires separate 
disclosure of statutory receivables together with additiional disclosure on measurement basis and criteria. 

1.9 Intangibie assets 

An intangible asset is an identifiable non-monetary asset without physical substance. 

Intangible assets are initially recognised at cost and comprise of software and servitudes 

Computer software is capitalised to computer equipment where it forms an integral part of computer equipment. 

Servitudes are classified as intangible assets. Servitudes are rights that are not amortised as they have an indefinate 
useful life 

Where an intangible asset is acquired by the municipality for no or nominal consideration (i.e. through a non-exchange 
transaction), the cost is deemed to be equal to its fair value at the date of acquisition. 

Expenditure on research (or on the research phase of an internal project) is recognised as an expense when it is incurred. 

An intangible asset arising from development (or from the development phase of an internal project) is recognised 
when: 

• it is technically feasible to complete the asset so that it will be available for use or sale. 

• there is an intention to complete and use or sell it. 

• there is an ability to use or sell it. 

• it will generate probable future economic benefits or service potential. 

• there are available technical, financial and other resources to complete the development and to use or sell the 
asset. 

• the expenditure attributable to the asset during its development can be measured reliably. 


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Annual Financial Statements for the year ended June 30, 2014 

ACCOUNTING POLICIES 


1.9 Intangible assets (continued) 

Intangible assets are carried at cost less any accumulated amortisation and any impairment losses. The cost of an 
intangible asset is amortised over the usful life where that useful life is finite. Where the useful life is indefinate,the 
asset is not amortised but is subject to an annual impairment test. Expenditure on an intangible asset is recognised as 
an expense when it is incurred unless it forms part of the cost of an intangible asset that meets the recognition 
criteria. Residual value of intangible assets is estimated to be nil. 

The amortisation period and the amortisation method for intangible assets are reviewed at each reporting date. 
Amortisation is provided to write down the intangible assets, on a straight line basis, over their useful lives as follows: 

Item Useful life 

Computer software 2 - 20 years 

The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at each 
reporting date and any changes are recognised as a change in accounting estimate in the Statement of Financial 
Performance. The municipality tests intangible assets with finite useful lives for impairment where there is an indication of 
possible impairment,which is done at each reporting date. Where the carrying amount of an item of an intangible asset is 
greater than the estimated recoverable amount ( or recoverable service amount), it is written down immediately to its 
recoverable amount (or recoverable service amount ) and an impairment loss is charged to the Statement of Financial 
Perfomance. 

Intangible assets are derecognised when the asset is disposed or when there are no further economic benefits or service 
potential expected from the use of the asset.The gain or loss arising on the disposal or retirement of an intangible asset is 
determined as the difference between the net proceeds and the carrying value and is recognised in the Statement of 
Financial Performance 

1.10 Heritage assets 

Heritage assets are assets that have a cultural, environmental, historical, natural, scientific, technological or artistic 
significance and are held indefinitely for the benefit of present and future generations. 

initiai Recognition 

A heritage asset that qualifies for recognition as an asset is measured at its cost and any costs directly attributable to 
bringing the heritage asset to the location and condition necessary for it to be capable of operating in the manner 
intended by the Municipality. 

Where a heritage asset is acquired through a non-exchange transaction, its deemed cost is to be measured at its fair 
values as at the date of acquisition. If at Initial recognition, the Municipality cannot reliably measure its cost, the relevant 
and useful information about the heritage asset is disclosed in the notes to the financial statements. 

Subsequent measurement 

Subsequent to initial recognition, heritage assets are measured at cost less accumulated impairment losses ie cost 
model. 

Depreciation and impairment 

Heritage assets are not depreciated but assessed at each reporting date whether there is an indication that it may be 
impaired. 

Derecognition 

Heritage assets are derecognised when the asset is disposed of or when there are no further economic benefits or 
service potential expected from the use or disposal of the asset. The gain or loss arising on the disposal or retirement of a 
heritage asset is recognised in the Statement of Financial Performance. 


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eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

ACCOUNTING POLICIES 


1.11 Investments in Municipal entities 
Group annual financial statements 

The group annual financial statements include those of the municipality and its municipal entities. The revenue and 
expenses of the municipal entities are included from the effective date of acquisition. 

On acquisition the group recognises the municipal entities's identifiable assets, liabilities and contingent liabilities at fair 
value, except for assets classified as held-for-sale, which are recognised at fair value less costs to sell. 

Municipality annual financial statements 

Investments in municipal entities are carried at cost less any accumulated impairment. 

Investments in municipal entities under the ownership control of the Municipality are carried at cost. Separate 
consolidated financial statements are prepared to account for the Municipality’s share of net assets and post acquisition 
results of these investments. 

The municipality assesses at each reporting date whether there is any indication that an investment in municipal entities 
may be impaired. If any such indication exists, the municipality estimates the recoverable amount of the investment in 
municipal entities. 

The recoverable amount of an investment in municipal entities is the higher of its fair value less costs to sell and its value 
in use. 

A reversal of an impairment loss of investments in municipal entities carried at cost is recognised immediately in the 
Statement of Financial Performance. 

1.12 Interest in joint ventures 

Group annual financial statements 

An interest in a joint venture is accounted for using the proportionate consolidation method, except when the asset is 
classified as held-for-sale. Under the proportionate consolidation method the group’s share of each of the assets, 
liabilities, revenue and expenses of the investment is combined line by line with similar items in the group annual 
financial statements. The use of proportionate consolidation is discontinued from the date on which it ceases to have 
joint control over a jointly controlled entity. 

Municipality annual financial statements 

An investment in a joint venture is carried at cost less any accumulated impairment. 

The municipality's share of profits or losses, resulting from operations of the joint venture, is recognised on the accrual 
basis and is capitalised to the cost of the investment. 

The municipality assesses at each reporting date whether there is any indication that an investment in a joint venture may 
be impaired. If any such indication exists, the municipality estimates the recoverable amount of the investment in a joint 
venture. 

The recoverable amount of an investment in a joint venture is the higher of its fair value less costs to sell and its value in 
use. 

A reversal of an impairment loss of investments in a joint venture carried at cost is recognised immediately in the 
Statement of Financial Performance. 

1.13 Financial instruments 

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or a residual 
interest of another entity. 

Initial recognition 

Financial instruments are initially recognised at fair value. In the case of a financial instrument not subsequently measured 
at fair value, transaction costs that are directly attributable to the acquisition or issue of the financial instrument are added 
to the fair value. 

Financial Instruments are categorised according to their nature as either financial instruments at fair value, held at 
amortised cost, or held at cost. The classification depends on the purpose for which the investments were acquired. 
Management determines the classification of its investments at initial recognition and re-evaluates this designation at 
every reporting date. 


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eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

ACCOUNTING POLICIES 


1.13 Financial instruments (continued) 

Subsequent measurement of financial assets and financial liabilities 
Loans to (from) municipal entities 

These include loans to municipal entities and recognised at fair value plus any transaction costs and subsequently 
measured at cost. 

An impairment loss is recognised in the Statement of Financial Performance when there is objective evidence that it is 
impaired. The impairment is measured as the difference between the investment’s carrying amount and the present value 
of estimated future cash flows discounted at the effective interest rate computed at initial recognition. 

Debtors 

Debtors are initially recognised at fair value plus any transaction costs and subsequently measured at amortized cost 
using the effective interest method, less provision for impairment. A provision for impairment of debtors is established 
when there is objective evidence that the municipality will not be able to collect all amounts due according to the original 
terms of the debtors. The amount of the provision is the difference between the asset’s carrying amount and the present 
value of estimated future cash flows, discounted at the effective interest rate. Impairment losses are recognised in the 
Statement of Financial Performance. 

An estimate is made for doubtful debts based on the categorisation of debts and a review of past trends in collection rates 
applied to all outstanding amounts at year-end. Bad debts are written off during the year in which they are identified in the 
Statement of Financial Performance. 

Creditors 

Trade payables are initially measured at fair value plus any transaction costs, and are subsequently measured at 
amortised cost, using the effective interest rate method. 


Cash and cash equivaients 

These are initially and subsequently recorded at fair value. 

For cash flow purposes cash and cash equivalents includes cash on hand, deposits held at call with banks, other short- 
term highly liquid investments, and bank overdrafts. 

Bank overdrafts are recorded based on the facility utilised. Finance charges on bank overdraft are expensed as incurred. 

Borrowings and other financiai iiabiiities 

Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at 
amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in 
the statement of financial performance over the period of the borrowings using the effective interest method. 

Long term borrowings are non-derivative financial loans and the Municipality does not hold financial loans for trading 
purposes. Long term borrowings are utilised solely for funding capital projects and the book value is disclosed at 
amortised cost. 

Other financial liabilities are carried at amortised cost. 

Loans and receivabies 

Loans and receivables are measured initially and subsequently at fair value, gains and losses arising from changes in fair 
value are included in the Statement of Financial Performance for the period. 

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an 
active market and with no intention of trading. They are included in current assets, except for maturities greater than 12 
months after the balance sheet date. These are classified as non-current assets. Loans and receivables are included in 
trade and other receivables in the Statement of Financial Position. 


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eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

ACCOUNTING POLICIES 


1.13 Financial instruments (continued) 

Fixed and Negotiable Deposits 

Fixed and negotiable deposits are non-derivative financial assets with fixed or determinable payments and fixed maturities 
that the municipality will hold to maturity. 

Fixed and negotiable deposits are initially and subsequently measured at fair value which in the case of investments that 
have an original maturity date of less than 12 months equates the cost. Fixed and negotiable deposits held for greater 
than 12 months are fair valued annually and the difference recognised in the statement of financial performance. 

On disposal of Fixed and negotiable deposits, the difference between the net disposal proceeds and the carrying amount 
is charged or credited to the Statement of Financial Performance. 


1.14 Tax 

Deferred tax assets and liabilities 

Deferred Income Tax with respect to Municipal Entities, is provided in full , using the liability method, on temporary 
differences arising between the tax basis of asset and liabilities and their carrying amounts in the financial 
statements. Current tax rates are used to determine deferred income tax. 

A deferred tax asset is recognised to the extent that it is probable that the future taxable profit will be available against 
which temporary differences will be utilised. 

Tax expenses 

The Municipality is exempted from tax in terms of section 10(1)(a) of the Income Tax Act. 

1.15 Long Service Awards 

Provision for long service awards represents the present value of the estimated future cash outflows to be made by the 
Municipality resulting from employee services provided up to Statement of Financial position date. The provision 
comprises amounts that the Municipality has a present obligation to pay resulting from employees services provided up to 
Statement of Financial position date. 

1.16 Leases 

Operating ieases - The Municipaiity as iessor 

Assets leased to third parties under operating leases are included in investment properties and property, plant and 
equipment in the statement of financial position. 

They are depreciated over their expected useful lives on a basis consistent with similar owned investment properties and 
property, plant and equipment. Rental income (net of any incentives given to lessees) is recognised over the lease term. 

Operating ieases - The Municipaiity as iessee 

Leases where the lessor retains substantially all the risks and rewards of ownership are classified as operating leases. 
Payments made under operating leases (net of any incentives received from the lessor) are charged to the statement of 
financial performance on a straight-line basis over the period of the lease. 

1.17 Inventories 
Initial Recognition 

Inventories are initially recognized at cost. Cost generally refers to the purchase price, plus taxes (other than those 
subsequently recovered from the taxing authorities), transport costs and any other costs in bringing the inventories to their 
current location and condition. Where inventory is manufactured, constructed or produced, the cost includes the cost of 
labour, materials and overheads used during the manufacturing process. 


25 





373 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

ACCOUNTING POLICIES 


1.17 Inventories (continued) 

Subsequent Measurement 

Net realisable value is the estimated selling price in the ordinary course of operations. 

When inventories are sold, the carrying amount of those inventories are recognised as an expense in the period in which 
the related revenue is recognised. The amount of any write-down of inventories to net realisable value and all losses of 
inventories are recognised as an expense in the period the write-down or loss occurs. The amount of any reversal of any 
write-down of inventories, arising from an increase in net realisable value, are recognised as a reduction in the amount of 
inventories recognised as an expense in the period in which the reversal occurs. 

Consumable stores, maintenance materials and water stock are valued at the lower of cost and net realisable value. In 
general, the basis of determining cost is the weighted average method. 

Unsold properties are valued at the lower of cost and net realisable value on a weighted average cost basis. Direct costs 
are accumulated for each separately identifiable development. Costs also include a proportion of overhead costs. 
Redundant and slow-moving inventories are identified and written down from cost to net realisable value with regard to 
their estimated economic or realisable values. 

1.18 Impairment of cash-generating assets 

The Municipality classifies all assets held with the primary objective of generating a commercial return as cash generating 
assets. 

The municipality assesses at each reporting date, or more frequently where events or changes in circumstances indicate 
that an asset may be impaired. When such an indication exists, the municipality determines the recoverable amount of 
the asset. 

The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs to sell and its value 
in use. A cash generating unit is the smallest identifiable group of assets held with the primary objective of generating a 
commercial return. 

Impairment loss of a cash-generating unit is allocated to decrease the carrying amount of the assets of the unit on a pro 
rata basis, based on the carrying amount of each asset in the unit. After allocating the impairment loss, the carrying 
amount should be the highest of, its fair value less cost to sell; or value in use; or zero. 

Reversal of an impairment loss for a group of assets / cash-generating unit should be allocated to the cash-generating 
assets of the unit, pro rata with the carrying amount of those assets. 

If the carrying amount of a cash-generating asset exceeds its recoverable amount, it is impaired and is recognised 
immediately in the Statement of Financial Performance. 


26 





374 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

ACCOUNTING POLICIES 


1.19 Impairment of non-cash-generating assets 

Non-cash-generating assets are those assets held by the municipality without an intention of generating a commercial 
return and held primarily for service delivery purposes. The Municipality classifies all assets held with the primary objective 
of generating a commercial return as cash generating assets. 

The municipality will apply its judgment and disclose the criteria used in making such judgment in cases where it’s not 
clear whether the primary objective is to generate a commercial return. The municipality assesses at each reporting date 
whether there is any indication that an asset may be impaired. If any such indication exists, the municipality determines 
the recoverable service amount of the asset. The recoverable service amount is the higher of a non-cash-generating 
asset’s fair value less costs to sell and its value in use. 

If the carrying amount of a non-cash-generating asset exceeds its recoverable service amount, it is impaired and is 
recognised immediately in the Statement of Financial Performance. 

An impairment loss is when the asset’s carrying amount exceeds its recoverable service amount and is recognised in the 
Statement of Financial Performance. 

A reversal of an impairment loss of assets carried at cost less accumulated depreciation or amortisation is recognised 
immediately in the Statement of Financial Performance. The increase in the carrying amount of an asset due to the 
reversal of an impairment loss should not exceed what the carrying amount would have been if no impairment loss had 
been recognised. 

Intangible assets with indefinite useful lives and not yet available for use, are tested for impairment annually, irrespective 
of whether any indication of impairment exists. 

1.20 Grants, Transfers and Donations 

Income received from conditional grants, donations and subsidies is recognised to the extent that the Municipality has 
complied with any of the criteria, conditions or obligations embodied in the agreement. To the extent that the criteria, 
conditions or obligations have not been met, a liability is recognised and funds are invested until utilised. 

Interest earned on the investment is treated in accordance with grant conditions. If it is payable to the funder, it is 
recorded as part of the creditor. If it is the Municipality's interest, it is recognised as interest earned in the Statement of 
Financial Performance. 

Grants and receipts of a revenue nature: Income is transferred as revenue to the Statement of Financial Performance to 
the extent that the criteria, conditions or obligations have been met. 

1.21 Budget Information 

An approved budget is the anticipated revenue and expenditure expected to apply in the annual or multiyear period based 
on current plans and approved by the Municipal Council. The Final Budget is the approved budget adjusted for 
transfers, allocations, supplemental appropriations and other changes applicable to the budget period. The budget has 
been included in the Annual Financial Statements in accordance with the disclosure recommendations determined by 
National Treasury. 

The budget has been included in the Annual Financial Statements in accordance with GRAP 24. The municipality 
presents a comparison of budget and actual amounts as a Statement of comparative and actual information. 

The Appropriation Statement of comparative and actual information has been included in the annual financial statements 
as the recommended disclosure when the annual financial statements and the budget are on the same basis of 
accounting as determined by National Treasury. 

Comparative information is not required. 

1.22 Reiated Parties 

Parties are considered to be related if one party directly or indirectly has the ability to control the other party or exercise 
significant influence over the other party in making financial and operating decisions or is a member of the key 
management of the municipality / entity. Refer note 40 - Related Parties. 


27 





375 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

ACCOUNTING POLICIES 


1.23 Capital Commitments 

A capital commitment is a binding agreement to undertake capital expenditure at some set time in the future which has 
not yet become an actual liability. 


1.24 Post-reporting date events 

Events after the reporting date are those events, both favourable and unfavourable, that occur between the reporting date 
and the date when the financial statements are authorised for issue. 

Two types of events can be identified: 

- those that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date); 

- those that are indicative of conditions that arose after the reporting date (non-adjusting events after the reporting 
date). 

The Municipality will adjust the amounts recognised in the financial statements to reflect adjusting events after the 
reporting date once the event occurred. 

The Municipality will disclose the nature of the event and an estimate of its financial effect or a statement that such 
estimate cannot be made in respect of all material non-adjusting events, where non-disclosure could influence the 
economic decisions of users taken on the basis of the financial statements. 

1.25 Provisions and contingencies 

Provisions are recognised when: 

• the municipality has a present or constructive obligation as a result of a past event; 

• it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; 
and 

• a reliable estimate can be made of the obligation. 

Provisions are reviewed at reporting date and adjusted to reflect the current best estimate. 

Where the effect is material, non-current provisions are discounted to their present value using a prevailing prime rate at 
year end which reflects the market’s current assessment of the time value of money, adjusted for risks specific to the 
liability, if any (for example in the case of obligations for the rehabilitation of land). The municipality uses the prevailing 
prime rate at year end. 

Contingent assets and contingent liabilities are not recognised. Contingencies are disclosed in note 39. 

1.26 Revenue 

Revenue comprises of the consideration received or receivable for the sale of goods and services in the ordinary course 
of the Municipality's activities. Revenue is shown net of value added tax, estimated returns, rebates and discounts and 
after eliminated revenue within departments of the Municipality. 

Revenue from the sale of goods is recognised when all the following conditions have been satisfied: 

• The Municipality has transferred to the buyer the significant risks and rewards of ownership of the goods; 

• The Municipality retains neither continuing managerial involvement to the degree usually associated with ownership nor 
effective control over the goods sold; 

• The amount of revenue can be measured reliably 

• It is probable that the economic benefits associated with the transaction will flow to the Municipality; 

• The costs incurred or to be incurred in respect of the transaction can be measured reliably. 

Revenue is recognised as follows: 


28 





376 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

ACCOUNTING POLICIES 


1.26 Revenue (continued) 

1.26.1 Revenue from exchange transactions 

Exchange transactions are transactions in which one entity receives assets or services, or has liabilities extinguished, and 
directly gives approximately equal value to another entity in exchange. 

Service charges relating to electricity and water are based on consumption. Meters are read on a quarterly basis and are 
recognised as revenue when invoiced. Bulk electricity meters are read monthly. 

Provisional estimates of consumption are made monthly when meter readings have not been performed. The provisional 
estimates of consumption are recognised as revenue when invoiced. Adjustments to provisional estimates of 
consumption are made in the invoicing period in which meters have been read. These adjustments are recognised as 
revenue in the invoicing period. Revenue from the sale of electricity prepaid meter cards are recognised at the point of 
sale. 

Service charges relating to refuse removal are recognised on a monthly basis by applying the approved tariff to each 
property based on category of property and the property value. 

Service charges from sewerage and sanitation are based on water consumption and are levied monthly. 

Interest and rentals are recognised on a time proportion basis. 

Dividends are recognised on the date that the Municipality becomes entitled to receive the dividend. 

Revenue arising from the application of the approved tariff of charges is recognised when the relevant service is rendered 
by applying the relevant gazetted tariff. This includes the issuing of licences and permits. 

Income for agency services is recognised on a monthly basis once the income collected on behalf of agents has been 
quantified. The income recognised is in terms of the agency agreement. 

Finance income from the sale of housing by way of instalment sales agreements or finance leases is recognised on a 
time proportion basis. 

Revenue from the sale of goods is recognised when the risk is passed to the consumer. 

Revenue from public contributions is recognised when all conditions associated with the contribution have been met. 
Where public contributions have been received but the municipality has not met the condition, a liability is recognised. 
Durban Marine Theme Park (Proprietary ) limited recognises revenue from parking fees and sales immediately upon 
receipt. 

All other revenue is recognised as it accrues. 

1.26.2 Revenue from non-exchange transactions 

This refers to transactions where the municipality received revenue from another entity without giving approximately 
equal value in exchange. 

Revenue from property rates is recognised when the legal entitlement to this revenue arises. Collection charges are 
recognised when such amounts are legally enforceable. Penalty interest on unpaid rates is recognised on a time 
proportion basis with reference to the principal amount and the effective interest rate applicable. 

Fines constitute both spot fines and summonses. Revenue from spot fines and summonses is recognised bases on 
management’s best estimate of the probable inflows. 

Donations are recognised on a cash receipt basis or where the donation is in the form of property, plant and 
equipment, at the fair value of the consideration received or receivable. 

Contributed property, plant and equipment is recognised when ownership of the items of property, plant and 
equipment is transferred to the municipality. 

Revenue from the recovery of unauthorised, irregular, fruitless and wasteful expenditure is based on legislated 
procedures, including those set out in the Municipal Finance Management Act (Act No. 56 of 2003) and is recognised 
when the recovery thereof from the responsible councillors or officials is virtually certain. 

1.27 Borrowing costs 

Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are 
capitalised to the cost of that asset unless it is inappropriate to do so. The Municipality ceases the capitalisation of 
borrowing costs when substantially all the activities to prepare the asset for its intended use or sale are complete. It is 
considered inappropriate to capitalise borrowing costs where the link between the funds borrowed and the capital 
asset acquired cannot be adequately established. Borrowing costs incurred other than on qualifying assets are 
recognised as an expense in the Statement of Financial Performance when incurred. 


29 





377 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

ACCOUNTING POLICIES 


1.28 Translation of foreign currencies 
Foreign currency transactions 

Transactions in foreign currencies are initially recorded at the prevailing exchange rate on the dates of the transactions. 
Monetary assets and liabilities denominated in such foreign currencies are retranslated at the rates prevailing at the 
reporting date. Exchange differences are included in the Statement of Financial Performance. 

1.29 Comparatives information 

Where necessary, comparative figures have been reclassified to conform to changes in presentation in the current year. 

1 .27.1 Current year comparatives 

Budgeted amounts have been included in an annexure to these financial statements for the current financial year only. 

1 .27.2 Prior year comparatives 

When the presentation or classification of items in the annual financial statements is amended, prior period comparative 
amounts are restated. The nature and reason for the reclassification is disclosed. Where there has been a change in 
accounting policy in the current year, the adjustment is made retrospectively as far as is practicable, and the prior year 
comparatives are restated accordingly. 

1.30 Unauthorised expenditure 

Unauthorised expenditure is expenditure that has not been budgeted, expenditure that is not in terms of the conditions of 
an allocation received from another sphere of government, municipality or organ of state and expenditure in the form of a 
grant that is not permitted in terms of the Municipal Finance Management Act (Act No. 56 of 2003). Unauthorised 
expenditure is accounted for as an expense in the Statement of Financial Performance. Where unauthorised expenditure 
is not approved, upon the finalisation of an investigation, it is recovered from the responsible person and the amount 
received is accounted for as revenue in the Statement of Financial Performance. 

1.31 Fruitless and wasteful expenditure 

Fruitless and wasteful expenditure is expenditure that was made in vain and would have been avoided had reasonable 
care been exercised. If the expenditure is not condoned by the relevant authority ,upon the finalisation of an investigation, 
it is accounted for as a current asset in the Statement of Financial Position until such time as the expenditure is recovered 
from the responsible person or written off as irrecoverable in the Statement of Financial Performance. 

1.32 Irregular expenditure 

Irregular expenditure is expenditure that is contrary to the Municipal Finance Management Act (Act No. 56 of 2003), the 
Municipal Systems Act (Act No. 32 of 2000), the Public Office Bearers Act (Act No. 20 of 1998) or is in contravention of the 
Municipality’s supply chain management policy. Irregular expenditure excludes unauthorised expenditure. Irregular 
expenditure is accounted for as expenditure in the Statement of Financial Performance. If the expenditure is not 
condoned by the relevant authority ,upon the finalisation of an investigation, it is treated as a current asset until it is 
recovered or written off as irrecoverable in the Statement of Financial Performance. 


30 





378 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


2. Inventories 


Unsold Proprties held for re-sale 

42,381 

44,279 

- 

- 

Food and beverages 

2,001 

2,458 

- 

- 

Consumable stores 

331,311 

223,303 

330,212 

222,512 

Maintenance materials 

36 

65 

36 

65 

Water 

11,665 

10,755 

11,665 

10,755 

Other 

2,228 

3,156 

- 

- 



389,622 

284,016 

341,913 

233,332 

The cost of inventories recognised 
(2013: R1 367.2m). 

as an expense during the period 

in respect of 

water sales 

was R1520 m 

Investments 





Designated at fair value 

Fixed deposit 

4,050,000 

4,850,000 

4,050,000 

4,850,000 


Non-current assets 

Fixed Deposit 

500,000 

500,000 

500,000 

500,000 

Current assets 

Fixed Deposit 

3,550,000 

4,350,000 

3,550,000 

4,350,000 


Investments are non-derivative financial assets and are classified at fair value and are held to maturity. Investments will 
mature within two to four months, therefore cost equates fair value. The Municipality does not hold its investments for 
trading purpose. Management determines the classification of its investments at the time of acquisition and reevaluates 
such declaration on an annual basis. Investments held for less than 12 months are recognised at cost. Investments with 
maturities greater than 12 months are recognised at fair value. 

4. Receivables from exchange transactions 


Provision for Bad debts 

(2,586,854) 

(1,586,555) 

(2,586,854) 

(1,586,555) 

Prepayments 

40,768 

31,353 

37,910 

29,255 

Other Debtors (mainly in respect of sundry 
services and interest on outstanding debt) 

2,553,566 

2,127,550 

2,541,823 

2,117,091 

Debtor - DOFIS 

2,474,940 

1,566,208 

2,474,940 

1,566,208 

Fair value adjustments 

(1,669) 

(1,244) 

(1,669) 

(1,244) 

Accruals 

95,538 

97,474 

95,538 

97,474 


2,576,289 

2,234,786 

2,561,688 

2,222,229 

VAT 





VAT reconciliation 

VAT payable 

(2,046) 

(1,183) 



VAT receivable 

96,510 

23,912 

95,765 

23,312 

Net Vat 

94,464 

22,729 

95,765 

23,312 


Municipality: 

VAT is payable on the receipts basis. Only once payment is received from debtors is VAT paid over to SARS. 


31 











379 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

Notes to the Annual Financial Statements 



Group 


Municipality 

Figures in Rand 

2014 

2013 

2014 

2013 

6. Consumer debtors 





Gross balances 

Rates 

2,100,582 

2,037,367 

2,100,582 

2,037,367 

Electricity 

1,173,232 

1,134,456 

1,173,232 

1,134,456 

Water 

1,241,447 

1,375,753 

1,244,866 

1,379,804 

Refuse 

103,890 

89,656 

103,890 

89,656 

Business service levies 

3,765 

3,765 

3,765 

3,765 

Flousing rental 

55,350 

85,237 

55,350 

85,237 

Waste water 

208,452 

183,069 

208,452 

183,069 

ICC Debtors 

1,291 

2,759 

- 

- 


4,888,009 

4,912,062 

4,890,137 

4,913,354 

Less: Allowance for impairment 

Rates 

(823,622) 

(921,316) 

(823,622) 

(921,316) 

Electricity 

(171,158) 

(179,303) 

(171,158) 

(179,303) 

Water 

(801,232) 

(700,779) 

(801,232) 

(700,779) 

Refuse 

(65,708) 

(51,008) 

(65,708) 

(51,008) 

Business service levies 

(3,765) 

(3,765) 

(3,765) 

(3,765) 

Flousing rental 

(44,182) 

(50,480) 

(44,182) 

(50,480) 

Waste water 

(98,411) 

(78,856) 

(98,411) 

(78,856) 

ICC Debtors 

(883) 

(2,127) 

- 

- 


(2,008,961) 

(1,987,634) 

(2,008,078) 

(1,985,507) 

Net balance 

Rates 

1,276,960 

1,116,051 

1,276,960 

1,116,051 

Electricity 

1,002,074 

955,153 

1,002,074 

955,153 

Water 

440,215 

674,974 

443,634 

679,025 

Refuse 

38,182 

38,648 

38,182 

38,648 

Flousing rental 

11,168 

34,757 

11,168 

34,757 

Waste water 

110,041 

104,213 

110,041 

104,213 

ICC Debtors 

408 

632 

- 

- 


2,879,048 

2,924,428 

2,882,059 

2,927,847 

Included in above is receivables from 
exchange transactions 

Electricity 

1,002,074 

955,153 

1,002,074 

955,153 

Water 

440,215 

674,974 

443,634 

679,025 

Waste water 

110,041 

104,213 

110,041 

104,213 

Refuse 

38,182 

38,648 

38,182 

38,648 

Flousing rental 

11,168 

34,757 

11,168 

34,757 

ICC Debtors 

408 

632 

- 

- 


1,602,088 

1,808,377 

1,605,099 

1,811,796 

Included in above is receivables from non- 
exchange transactions (taxes and transfers) 

Rates 

1,276,960 

1,116,051 

1,276,960 

1,116,051 

Net balance 

2,879,048 

2,924,428 

2,882,059 

2,927,847 


32 
















380 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

Notes to the Annual Financial Statements 




Group 


Municipality 

Figures in Rand 

2014 

2013 

2014 

2013 

6. 

Consumer debtors (continued) 






Rates 

Current (0 -30 days) 

392,308 

310,850 

380,308 

310,850 


31-60 days 

65,263 

71,062 

65,263 

71,062 


61-90 days 

81,033 

58,118 

81,033 

58,118 


91 - 120 days 

28,933 

28,720 

40,933 

28,720 


121 -365 days 

1,387,798 

1,428,855 

1,387,798 

1,428,855 


> 365 days 

145,247 

139,762 

145,247 

139,762 



2,100,582 

2,037,367 

2,100,582 

2,037,367 


Electricity, Water, Solid Waste and Waste 

Water 






Current (0 -30 days) 

1,127,238 

1,098,105 

1,130,657 

1,102,156 


31-60 days 

195,059 

187,599 

195,059 

187,599 


61-90 days 

72,590 

64,713 

72,590 

64,713 


91-120 days 

57,609 

54,993 

57,609 

54,993 


> 365 days 

1,274,525 

1,377,524 

1,274,525 

1,377,524 



2,727,021 

2,782,934 

2,730,440 

2,786,985 


Regional services levies 

> 365 days 

3,765 

3,765 

3,765 

3,765 


Housing rental 

Current (0 -30 days) 

387 

2,572 

387 

2,572 


31-60 days 

1,182 

1,627 

1,182 

1,627 


61-90 days 

1,222 

1,225 

1,222 

1,225 


91-120 days 

1,195 

29,333 

1,195 

29,333 


121 -365 days 

51,364 

50,480 

51,364 

50,480 



55,350 

85,237 

55,350 

85,237 


I.C.C. Debtors 

Current (0 -30 days) 

822 

91 




31-60 days 

61 

- 

- 

- 


61-90 days 

- 

25 

- 

- 


91-120 days 

408 

2,643 

- 

- 



1,291 

2,759 

- 

- 


Reconciliation of allowance for impairment 

Balance at beginning of the year 

(1,987,634) 

(1,928,593) 

(1,985,507) 

(1,925,168) 


Contributions to allowance 

(553,736) 

(245,528) 

(554,980) 

(245,812) 


Debt impairment written off against allowance 

532,409 

186,487 

532,409 

185,473 



(2,008,961) 

(1,987,634) 

(2,008,078) 

(1,985,507) 

7. 

Long-term receivables 






Loan:DIDT 

156,583 

156,583 

156,583 

156,583 


Housing Selling scheme loans 

128,042 

127,333 

128,042 

127,333 


First Metro Housing Loans 

14,114 

15,054 

14,114 

15,054 


Land sales 

1,514 

69,438 

1,514 

69,438 


Education Loans 

17,647 

15,324 

17,647 

15,324 


Debt Impairment: DIDT 

(156,583) 

(156,583) 

(156,583) 

(156,583) 


Debt lmpairment:Housing Selling scheme loans 

(62,474) 

- 

(62,474) 

- 



98,843 

227,149 

98,843 

227,149 


33 








381 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


7. Long-term receivables (continued) 


Less: Current portion transferred to current 
receivables 


Housing Selling scheme loans 

3,337 

2,673 

3,337 

2,673 

First Metro Housing Loans 

1,038 

940 

1,038 

940 

Land sales 

1,514 

69,438 

1,514 

69,438 

Education Loans 

1,250 

132 

1,250 

132 


7,139 

73,183 

7,139 

73,183 

Long-term receivables - Non-current portion 

91,704 

153,966 

91,704 

153,966 

Long-term receivables - Current portion 

7,139 

73,183 

7,139 

73,183 


Education Loans 

These loans relate to students who are studying full-time at Universities in the Engineering disciplines. The cost covers 
tuition fees, books and subsistence. On successful completion of the course the students are, in terms of contractual 
obligations, employed by the Municipality. A pro-rata share of these costs are then written back as operating costs in 
annual instalments equal to the number of years studied. These loans (bursaries) are interest free. 

Sporting Bodies Loans 

These loans attract interest of 11% - 14% (2013 1 1% - 14%) per annum and are repayable over 20 to 50 years. 

Housing selling scheme loans 

Housing loans are granted to qualifying individuals in terms of the provincial administration housing programme. These 
loans attract interest in terms of the State Directives and Guidelines and are repayable over 20 years. 

Housing First Metro loan 

These loans attract interest at a fixed rate of 10% and are repayable over 20 years. 

8. Call investment deposits 

30 Day deposits 2,599,940 547,900 2,405,000 375,000 


9. Cash and cash equivalents 

Refer to note 47 for details on Bank accounts and balances. 


Cash and cash equivalents consist of: 


Cash on hand 

18,967 

6,217 

18,399 

4,493 

Bank balances 

1,048,347 

1,060,302 

977,630 

974,970 

Bank balances and cash 

1,067,314 

1,066,519 

996,029 

979,463 

Bank overdraft 

(857,562) 

(904,710) 

(857,562) 

(904,710) 


209,752 

161,809 

138,467 

74,753 

Call Investment Deposits 

2,599,940 

547,900 

2,405,000 

375,000 

Investments 

4,050,000 

4,850,000 

4,050,000 

4,850,000 


6,859,692 

5,559,709 

6,593,467 

5,299,753 


34 







382 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 





Group 

Municipality 

Figures in Rand 



2014 

2013 

2014 

2013 

10. Investment property 

Group 


2014 



2013 



Cost 

Accumulated 

depreciation 

and 

accumulated 

impairment 

Carrying value 

Cost 

Accumulated 

depreciation 

and 

accumulated 

impairment 

Carrying value 

Revenue Generating 
Non-revenue Generating 

193,264 

200,479 

(65,020) 

128,244 

200,479 

180,248 

208,724 

(60,462) 

119,786 

208,724 

Total 

393,743 

(65,020) 

328,723 

388,972 

(60,462) 

328,510 


Municipality 


2014 



2013 



Cost 

Accumulated 

depreciation 

and 

accumulated 

impairment 

Carrying value 

Cost 

Accumulated 

depreciation 

and 

accumulated 

impairment 

Carrying value 

Revenue Generating 
Non-revenue Generating 

102,554 

200,479 

(42,075) 

60,479 

200,479 

89,258 

208,724 

(39,943) 

49,315 

208,724 

Total 

303,033 

(42,075) 

260,958 

297,982 

(39,943) 

258,039 

Reconciliation of investment property - Group - 2014 





Revenue Generating 
Non-revenue Generating 


Opening 

balance 

119,786 

208,724 

Disposals 

(35) 

(8,245) 

T ransfers 

13,037 

Depreciation 

(4,544) 

Total 

128,244 

200,479 



328,510 

(8,280) 

13,037 

(4,544) 

328,723 

Reconciliation of investment property - Group - 2013 





Revenue Generating 
Non-revenue Generating 



Opening 

balance 

124,346 

209,029 

Disposals 

(28) 

(305) 

Depreciation 

(4,532) 

Total 

119,786 

208,724 




333,375 

(333) 

(4,532) 

328,510 

Reconciliation of investment property - Municipality - 2014 




Revenue Generating 
Non-revenue Generating 


Opening 

balance 

49,315 

208,724 

Disposals 

(29) 

(8,245) 

T ransfers 

13,037 

Depreciation 

(1,844) 

Total 

60,479 

200,479 



258,039 

(8,274) 

13,037 

(1,844) 

260,958 


35 

















383 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 

2013 

2014 

2013 

10. Investment property (continued) 





Reconciliation of investment property - 

Municipality - 2013 





Opening 

Disposals 

Depreciation 

Total 


balance 




Revenue Generating 

51,071 

- 

(1,756) 

49,315 

Non-revenue Generating 

209,029 

(305) 

- 

208,724 


260,100 

(305) 

(1,756) 

258,039 


Municipality 

The fair value of the above properties is R3.3billion (2013 R2.9billion). Investment properties have been valued in 
accordance with current market conditions. 

Group 

Durban Marine Theme Park (Pty) Ltd: Investment property comprises the Village Walk retail shopping mall from which 
rental income is derived. The original cost of this property including land was approximately R69 million. The directors fair 
value thereof is R128 million based on a valuation method of net rental return, capitalised at a fair market rate of return of 
12 %. 


36 









384 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 


Figures in Rand 


1 1 . Property, plant and equipment 


Group 


2014 



2013 



Cost / 
Valuation 

Accumulated Carrying value 
depreciation 
and 

accumulated 

impairment 

Cost / 
Valuation 

Accumulated Carrying value 
depreciation 
and 

accumulated 

impairment 

Buildings 

6,525,009 

(1,165,860) 

5,359,149 

5,587,481 

(1,008,623) 

4,578,858 

Infrastructure 

32,445,700 

(6,700,299) 

25,745,401 

30,004,057 

(5,871,032) 

24,133,025 

Community 

4,686,590 

(739,033) 

3,947,557 

4,615,906 

(616,112) 

3,999,794 

Other property, plant and equipment 

7,049,781 

(4,056,549) 

2,993,232 

6,464,881 

(3,504,676) 

2,960,205 

Flousing Development Fund 

133,211 

(65,341) 

67,870 

133,771 

(64,766) 

69,005 

Total 

50,840,291 

(12,727,082) 

38,113,209 

46,806,096 

(11,065,209) 

35,740,887 


Municipality 


2014 



2013 



Cost / 
Valuation 

Accumulated Carrying value 
depreciation 
and 

accumulated 

impairment 

Cost / 
Valuation 

Accumulated Carrying value 
depreciation 
and 

accumulated 

impairment 

Buildings 

5,185,366 

(781,237) 

4,404,129 

4,250,848 

(670,362) 

3,580,486 

Infrastructure 

32,445,701 

(6,700,299) 

25,745,402 

30,004,058 

(5,871,032) 

24,133,026 

Community 

4,686,590 

(739,033) 

3,947,557 

4,615,906 

(616,112) 

3,999,794 

Other property, plant and equipment 

6,826,879 

(3,907,343) 

2,919,536 

6,265,405 

(3,379,013) 

2,886,392 

Flousing Development Fund 

133,211 

(65,341) 

67,870 

131,091 

(62,086) 

69,005 

Total 

49,277,747 

(12,193,253) 

37,084,494 

45,267,308 

(10,598,605) 

34,668,703 


Reconciliation of property, plant and equipment - Group - 2014 


37 













385 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 


Figures in Rand 


1 1 . Property, plant and equipment (continued) 



Opening 

Additions 

Disposals 

T ransfers 

Work In 

Depreciation 

Impairment 

Total 


balance 




Progress 


loss 


Buildings 

4,578,858 

400,761 

(13) 

(13,726) 

551,047 

(157,778) 

- 

5,359,149 

Infrastructure 

24,133,025 

1,898,832 

(99) 

- 

553,897 

(838,943) 

(1,311) 

25,745,401 

Community 

3,999,794 

38,047 

- 

248 

32,389 

(118,718) 

(4,203) 

3,947,557 

Other property, plant and equipment 

2,960,205 

637,704 

(8,845) 

252 

(26,277) 

(563,820) 

(5,987) 

2,993,232 

Flousing Development Fund 

69,005 

649 

(254) 

- 

- 

(1,530) 

- 

67,870 


35,740,887 

2,975,993 

(9,211) 

(13,226) 

1,111,056 

(1,680,789) 

(11,501) 

38,113,209 

Reconciliation of property, plant and equipment ■ 

■ Group - 2013 









Opening 

Additions 

Disposals 

T ransfers 

Work In 

Depreciation 

Impairment 

Total 


balance 




Progress 


loss 


Buildings 

4,216,615 

349,663 

(630) 

- 

149,975 

(139,198) 

2,433 

4,578,858 

Infrastructure 

23,358,411 

1,661,484 

(657) 

- 

(84,318) 

(797,027) 

(4,868) 

24,133,025 

Community 

4,041,579 

71,392 

(2) 

- 

7,293 

(118,319) 

(2,149) 

3,999,794 

Other property, plant and equipment 

2,885,125 

643,598 

(15,472) 

(16) 

31,477 

(571,006) 

(13,501) 

2,960,205 

Flousing Development Fund 

71,635 

287 

(711) 

3 

- 

(2,209) 

- 

69,005 


34,573,365 

2,726,424 

(17,472) 

(13) 

104,427 

(1,627,759) 

(18,085) 

35,740,887 


38 





386 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 


Figures in Rand 


1 1 . Property, plant and equipment (continued) 


Reconciiiation of property, piant and equipment - Municipaiity - 2014 



Opening 

Additions 

Disposals 

T ransfers 

Work In 

Depreciation 

Impairment 

Total 


balance 




Progress 


loss 


Buildings 

3,580,486 

397,835 

(1) 

(13,726) 

551,167 

(111,632) 

- 

4,404,129 

Infrastructure 

24,133,026 

1,898,832 

(99) 

- 

553,897 

(838,943) 

(1,311) 

25,745,402 

Community 

3,999,794 

38,047 

- 

248 

32,389 

(118,718) 

(4,203) 

3,947,557 

Other property, plant and equipment 

2,886,392 

616,292 

(8,394) 

252 

(26,278) 

(542,741) 

(5,987) 

2,919,536 

Flousing Development Fund 

69,005 

649 

(254) 

- 

- 

(1,530) 

- 

67,870 


34,668,703 

2,951,655 

(8,748) 

(13,226) 

1,111,175 

(1,613,564) 

(11,501) 

37,084,494 

Reconciliation of property, plant and equipment - 

Municipality - 2013 









Opening 

Additions 

Disposals 

T ransfers 

Work In 

Depreciation 

Impairment 

Total 


balance 




Progress 


loss 


Buildings 

3,186,255 

338,135 

(571) 

- 

149,975 

(95,741) 

2,433 

3,580,486 

Infrastructure 

23,358,413 

1,661,483 

(657) 

- 

(84,318) 

(797,027) 

(4,868) 

24,133,026 

Community 

4,041,579 

71,392 

(2) 

- 

7,293 

(118,319) 

(2,149) 

3,999,794 

Other property, plant and equipment 

2,805,967 

629,364 

(14,814) 

(16) 

31,477 

(551,887) 

(13,699) 

2,886,392 

Flousing Development Fund 

71,635 

287 

(711) 

3 

- 

(2,209) 

- 

69,005 


33,463,849 

2,700,661 

(16,755) 

(13) 

104,427 

(1,565,183) 

(18,283) 

34,668,703 


Included in Property, Plant and Equipment above are items that are still in use and that have a historical cost of R363m 
(2013 R333m) but are fully depreciated. This amount is made up as follows: Landfill (Disposal sites) - R269million; PPE 
fully impaired - R94million. 

Durban Marine Theme Park (Proprietary) Limited : At year-end there were 22 assets with an original cost of R257 747 
which were recorded at nil net book value and are still in use. 

ICC Durban (Proprietary) Limited: 3 523 fully depreciated assets are still in use. 


39 







388 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


12. Intangible assets 


Group 


2014 



2013 



Cost / 
Valuation 

Accumulated 

amortisation 

and 

accumulated 

impairment 

Carrying value 

Cost / 
Valuation 

Accumulated 

amortisation 

and 

accumulated 

impairment 

Carrying value 

Servitudes 

Computer software 

48,435 

978,680 

(253,571) 

48,435 

725,109 

48,362 

853,787 

(209,794) 

48,362 

643,993 

Total 

1,027,115 

(253,571) 

773,544 

902,149 

(209,794) 

692,355 


Municipality 


2014 



2013 



Cost / 
Valuation 

Accumulated 

amortisation 

and 

accumulated 

impairment 

Carrying value 

Cost / 
Valuation 

Accumulated 

amortisation 

and 

accumulated 

impairment 

Carrying value 

Servitudes 

Computer software 

48,435 

972,132 

(248,718) 

48,435 

723,414 

48,362 

848,114 

(205,871) 

48,362 

642,243 

Total 

1,020,567 

(248,718) 

771,849 

896,476 

(205,871) 

690,605 


Reconciliation of intangible assets - Group - 2014 



Opening 

balance 

Additions 

Transfers 

Work-in- 

Progress 

Amortisation 

Total 

Servitudes 

48,362 

73 

- 

- 

- 

48,435 

Computer software 

643,993 

90,564 

(2) 

34,375 

(43,821) 

725,109 


692,355 

90,637 

(2) 

34,375 

(43,821) 

773,544 


Reconciliation of intangible assets - Group - 2013 



Opening 

balance 

Additions 

Disposals 

T ransfers 

Work-in- 

Progress 

Amortisation 

Total 

Servitudes 

48,189 

173 

- 

- 

- 

- 

48,362 

Computer software 

614,780 

30,673 

(609) 

13 

41,163 

(42,027) 

643,993 


662,969 

30,846 

(609) 

13 

41,163 

(42,027) 

692,355 


Reconciliation of intangible assets - Municipality - 2014 



Opening 

balance 

Additions 

Transfers 

Work-in- 

Progress 

Amortisation 

Total 

Servitudes 

48,362 

73 

- 

- 

- 

48,435 

Computer software 

642,243 

89,689 

(2) 

34,375 

(42,891) 

723,414 


690,605 

89,762 

(2) 

34,375 

(42,891) 

771,849 


40 




389 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


12. Intangible assets (continued) 

Reconciliation of intangible assets - Municipality - 2013 



Opening 

balance 

Additions 

Disposals 

T ransfers 

Work-in- 

Progress 

Amortisation 

Total 

Servitudes 

48,189 

173 

- 

- 

- 

- 

48,362 

Computer software 

613,023 

29,967 

(609) 

13 

41,163 

(41,314) 

642,243 


661,212 

30,140 

(609) 

13 

41,163 

(41,314) 

690,605 


13. Heritage assets 


Group 


2014 



2013 



Cost / 
Valuation 

Accumulated 

impairment 

losses 

Carrying value 

Cost / 
Valuation 

Accumulated 

impairment 

losses 

Carrying value 

Art Collections, antiquities 
and exhibits 

10,512 

- 

10,512 

9,658 

- 

9,658 


Municipality 


2014 



2013 



Cost / 
Valuation 

Accumulated 

impairment 

losses 

Carrying value 

Cost / 
Valuation 

Accumulated 

impairment 

losses 

Carrying value 

Art Collections, antiquities 
and exhibits 

10,512 

- 

10,512 

9,658 

- 

9,658 


Reconciliation of heritage assets Group - 2014 


Art Collections, antiquities and exhibits 


Opening Additions Disposals 
balance 

9,658 857 (3) 


Total 

10,512 


Reconciliation of heritage assets Group - 2013 


Opening Additions Transfers Total 

balance 

Art Collections, antiquities and exhibits 9,501 149 8 9,658 


Reconciliation of heritage assets Municipality - 2014 


Art Collections, antiquities and exhibits 


Opening Additions Disposals 
balance 

9,658 857 (3) 


Total 

10,512 


Reconciliation of heritage assets Municipality - 2013 


Opening Additions Transfers Total 

balance 

Art Collections, antiquities and exhibits 9,501 149 8 9,658 


41 
















390 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 

2013 

14. Investments in Municipal entities 




Name of company 

ICC Durban (Proprietory)Limited 

Durban Marine Theme Park (State Owned Company)Limited 

% holding % holding 
2014 2013 

100.00 % 100.00 % 
99.80 % 99.80 % 

Carrying 
amount 2014 

1 

872,996 

Carrying 
amount 2013 

1 

872,996 

Impairment of investment in controlled entities 


872,997 

(289,563) 

872,997 

(346,673) 



583,434 

526,324 

At its meeting on 24 June 2014, and taking cognizance of the International Convention Centre and Durban Marine Theme 
Park, the Council's Finance and Procurement Committee confirmed its commitment to ensuring the future financial 
viability of the International Convention Centre and the Durban Marine Theme Park and more specifically to meet any 
funding shortfalls that may compromise their ability to continue trading as a "going concern". 


As at June 30, 2014 



ICC Durban 

Durban 


(Proprietary) 

Marine Theme 


Limited 

Park 

(Proprietary) 

Limited 

Issued Share Capital (R'OOO) 

1 

9,384 

Percentage owned by Council (%) 

100 

99 

Indebtedness of Municipal Entities (R'OOO)- Non Interest Bearing 

226,590 

- 

Electricity Income Received (R'OOO) 

9,351 

18,197 

Water Income Received (R'OOO) 

1,711 

5,143 

Rates Income Received (R'OOO) 

5,370 

4,234 

Refuse Removal (R'OOO) 

618 

936 

Insurance (R'OOO) 

- 

1,421 


As at June 30, 2013 



ICC Durban 

Durban 


(Proprietary) 

Marine Theme 


Limited 

Park 



(Proprietary) 



Limited 

Issued Share Capital (R'OOO) 

1 

9,384 

Percentage owned by Council (%) 

100 

99 

Indebtedness of Municipal Entities (R'OOO)- Non Interest Bearing 

226,590 

- 

Loss on Impairment of Loans 

(154,541) 

- 

Electricity Income Received (R'OOO) 

8,906 

16,807 

Water Income Received (R'OOO) 

1,312 

3,117 

Rates Income Received (R'OOO) 

4,290 

357 

Refuse Removal (R'OOO) 

511 

1,120 

Insurance (R'OOO) 

- 

1,246 


42 











391 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


15. Interest in joint ventures 

Name of company Listed / Carrying Carrying 

Unlisted amount 2014 amount 2013 


Effingham Development 66.74% 61,679 81,596 


This represents a 66.74% investment in Effingham Development (Joint Venture). 



The Effingham Development Joint Venture is a joint venture entered into with Moreland Developments (Pty)Ltd. The joint 
venture was formed with the objective of developing and marketing the serviced sites of the Effingham/ Avoca (Riverhorse 
Valley Business Estate) land and Phoenix South (Bridge City) land. 

Summary of the municipality's interest in the joint venture 



Assets 

Township Property 

Current assets - Debtors 

Current assets - Bank Balances and Cash on hand 

42,381 

14,505 

28,176 

44,279 

11,535 

44,509 

Total Assets 

85,062 

100,323 

Equity and Liabilities 

Members Loan Accounts 

Current liabilities - Creditors 

61,679 

23,383 

81,596 

18,727 

Total Equity and Liabilities 

85,062 

100,323 

Reconciliation of Investment in Joint Venture 

Balance at beginning of year 

Share of Income for the year 

Payment received 

81,596 

15,083 

(35,000) 

80,365 

1,231 

Balance at end of year 

61,679 

81,596 

Loan to Municipal entity 



Controlled entity 



ICC Durban (Proprietary) Limited 

226,590 

226,590 

Impairment of loan to municipal entity 

226,590 

226,590 

(154,541) 

- 

226,590 

72,049 

External Borrowings 



Designated at fair value 

Annuity loan 10,249,915 9,883,830 

Debenture 119,667 116,190 

10,247,716 

9,886,788 

10,369,582 10,000,020 

10,247,716 

9,886,788 


The fair value of all long term loans approximates their book values. 

Refer to Note 53 for more detail on long-term liabilities. 

DBSA Phase 2 and Phase 3 loans of R400million each are separately secured, each by a cession of an acceptable 
revenue stream of R20 million p.a. as security. The DBSA Phase 2 loan of R400million is a floating interest rate 
contract, and in order to mitigate the floating interest rate exposure, the Municipality entered into a fixed interest rate 
swap agreement with Standard Corporate & Merchant Bank. 


43 

















392 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


17. External Borrowings (continued) 

DBSA Phase 5 of R300m is seperately secured by a cession of an acceptable revenue stream of R15 million p.a. as 
security . 

AFD Calyon of R58.7m is seperately secured by a cession of carbon credit income in the event of default or nonpayment. 
The income is estimated to be R2.4m to the year 2015. 

Ushaka:Debentures: 

The unsecured convertible debenture bears interest at a non-compounding rate of 13% per annum. The accrued 
interest is payable at the end of the twelfth year of the issued debenture. The debenture is convertible at the option of 
the holder into ordinary shares of the company at anytime during 12 years from date of issue. Should the holder not 
excercise the option to convert, the debenture is redeemable at the option of either the issuer or the bearer after the 
12 years from date of issue. On redemption the debenture capital is repayable in three equal annual tranches during 
2015, 2016 and 2017. 

All other loans are unsecured. 

The Municipality has budgeted to borrow R1 billion per annum for the next 3 financial years (commencing in 2014/15) in 
order to finance capital expenditure. This practice is consistent with prior years. 

Non-current iiabiiities 


Designated at fair value 

9,376,543 

9,042,021 

9,255,502 

8,929,548 

Current liabilities 

Designated at fair value 

993,039 

957,999 

992,214 

957,240 

18. Payables from exchange transactions 

Trade payables 

2,105,335 

2,232,997 

2,079,800 

2,205,565 

Payments received in advanced - contract in 

44,112 

40,385 

44,112 

40,385 

process 

Income received in advance - D.O.FI.S 

772,213 

879,001 

772,213 

879,001 

Other payables 

1,746,352 

1,001,374 

1,779,456 

1,036,399 

Retentions 

174,342 

166,077 

174,342 

166,077 

Bank deposits not receipted 

453,486 

212,329 

453,486 

212,329 

Staff leave 

417,132 

322,534 

417,132 

322,534 

Deferred Expenditure (Straight-lining of Leases) 

28,879 

26,980 

28,879 

26,980 

Adjustment for fair value 

(8,651) 

(17,940) 

(8,651) 

(17,940) 


5,733,200 

4,863,737 

5,740,769 

4,871,330 

19. Consumer deposits 

I.C.C.: Clients deposits 

21,376 

18,933 

- 

- 

Electricity 

1,054,238 

876,846 

1,055,647 

877,823 

Water 

277,762 

249,180 

277,762 

249,180 

Interest 

177,782 

147,509 

177,782 

147,509 

Ushaka: Rental deposits 

2,020 

1,411 

- 

- 


1,533,178 

1,293,879 

1,511,191 

1,274,512 


Included in eThekwini Municipality's deposits is an accrual of interest at an effective interest rate of 3% per annum (2013: 
3%) which is paid to consumers when deposits are refunded. 


44 











393 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


20. EMPLOYEE BENEFIT OBLIGATIONS 

The amounts recognised in the statement of financiai position are as foiiows: 
Carrying vaiue 


Post - employment medical benefits 

Pension Benefits 

(3,132,817) 

317,671 

(2,867,471) 

(20,798) 

(3,132,817) 

317,671 

(2,867,471) 

(20,798) 


(2,815,146) 

(2,888,269) 

(2,815,146) 

(2,888,269) 

Non-current liabilities 

Current liabilities 

(2,659,382) 

(155,764) 

(2,725,419) 

(162,850) 

(2,659,382) 

(155,764) 

(2,725,419) 

(162,850) 


(2,815,146) 

(2,888,269) 

(2,815,146) 

(2,888,269) 


Actuarial Valuations: 

The actuarial valuations were done by Price Waterhouse Coopers Actuarial Management Solutions, an independent post 
retirement plan administrator and they determined that the retirement plan was in a sound financial position. Assumptions 
applied in the current period are summarised in the reconciliation of the actuarial losses. 

Net Actuarial Gain / (Loss): Post-employment Medical Benefits 


Change in calculation model 

- 

72,778 

- 

72,778 

Change in gross discount rate 

- 

47,787 

- 

47,787 

Change in health care cost inflation assumption 

92,253 

(198,458) 

(92,253) 

(198,458) 

Change in mortality assumption 

- 

295,918 

- 

295,918 

Introduction of ill-health assumption 

- 

221,836 

- 

221,836 

Change in active's percentage married 
assumption 

- 

(73,930) 

- 

(73,930) 

Experience variance and data changes 

(120,563) 

(179,531) 

120,563 

(179,531) 


(28,310) 

186,400 

28,310 

186,400 

Net Actuarial Gain / (Loss): Post-employment Pension Benefits 




Change in economic assumptions 

(107,485) 

(348,861) 

(107,485) 

(348,861) 

Change in demographic assumptions 

- 

286,259 

- 

286,259 

Experience variance and data changes 

45,415 

(25,333) 

45,415 

(25,333) 

Notional pensioners account 

(641,312) 

(324,501) 

(641,312) 

(324,501) 

Trust Account 

- 

(33,069) 

- 

(33,069) 


(703,382) 

(445,505) 

(703,382) 

(445,505) 

Statement of Financial Performance obligation for: 





Contribution to Post-employment medical benefits 

265,346 

127,502 

265,346 

127,502 

Pension Benefits: Contribution to Funds 

(276,078) 

(82,486) 

(276,078) 

(82,486) 

Total, included in employee benefits expense 

(10,732) 

45,016 

(10,732) 

45,016 


45 
















394 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


20. EMPLOYEE BENEFIT OBLIGATIONS (continued) 

Post-Retirement Medicai Aid Pian 

The municipality operates on 5 accredited medical aid schemes, namely Key Health, Hosmed, Bonitas, Samwumed and 
LA Health. Pensioners continue on the option they belonged to on the day of their retirement. 


Movement in the defined benefit obiigation is 
as foiiows: 


Balance at beginning of the year 

Current service cost 

Interest cost 

Actuarial (gains) losses 

Benefit payments 


2,867,471 

127,502 

264,867 

(28,310) 

(98,713) 

2,752,683 

139,153 

252,819 

(186,400) 

(90,784) 

2,867,471 

127,502 

264,867 

(28,310) 

(98,713) 

2,752,683 

139,153 

252,819 

(186,400) 

(90,784) 

Balance at end of year 


3,132,817 

2,867,471 

3,132,817 

2,867,471 

Net expense recognised in the Statement of financial performance 




Current service cost 

Interest cost 

Actuarial (gains) losses 

Benefit payments 


127,502 

264,867 

(28,310) 

(98,713) 

139,153 

252,819 

(186,400) 

(90,784) 

127,502 

264,867 

(28,310) 

(98,713) 

139,153 

252,819 

(186,400) 

(90,784) 

Total, included in employee benefits expense 

265,346 

114,788 

265,346 

114,788 

Trend Information - Disclosure Requirement in terms of GRAP 25 




Present Value of Obligations 

Fair Value of Plan Assets 

30 June 

2010 

(1,892,056) 

1,892,056 

30 June 

2011 

(2,067,082) 

2,067,082 

30 June 

2012 

(2,752,683) 

2,752,683 

30 June 

2013 

(2,867,471) 

2,867,471 

30 June 
2014 

(3,132,817) 

3,132,817 


Experience Adjustments (Actuarial 
Gain/(Loss) before Changes in 
Assumptions) 

In respect of Present Value of 

Obligations 

(151,079) 

13,736 

(162,839) 

(179,531) 

(120,563) 


Disciosure Requirement in terms of GRAP 25 


Health Care cost Inflation 
Central -1% +1% 

Assumption 
8.4% 

Accrued Liability June 30, 2014 3,132,817 2,666,030 3,724,807 

Current Service Cost + Interest Cost 2014/15 452,326 373,526 554,461 


Disclosure Requirement in terms of GRAP 25: 

The employer’s best estimate of contributions expected to be paid to the plan during the annual period beginning after 
the end of reporting period, is RIOl.Omillion. 


46 















395 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


20. EMPLOYEE BENEFIT OBLIGATIONS (continued) 
Key assumptions used 

Assumptions used at the reporting date: 


Discount rates used 

9.50 % 

9.20 % 

9.50 % 

9.20 % 

General increases to medical aid contributions 

8.40 % 

7.90 % 

8.40 % 

7.90 % 

Salary Inflation 

7.40 % 

6.00 % 

7.40 % 

6.00 % 

Expected retirement age 

63 

63 

63 

63 

Proportion continuing membership at retirement 

100.00 % 

100.00 % 

100.00 % 

100.00 % 

Proportion of retiring members who are married 

100.00 % 

100.00 % 

100.00 % 

100.00 % 

Other assumptions: 





Age of spouse - Flusbands 5 years older than wives 





Mortality of in-service members - Mortaility table based on Durban Pension Fund experience 



Mortality of pensioners - a(m) and a(f) ultimate tables plus 0.5% improvement per annum 



(No explicit assumption was made about additional mortality or health care costs due to AIDS). 


Percentage of in-service members withdrawing before retirement: 




Age 20 

7.85 % 

7.85 % 

7.85 % 

7.85 % 

Age 25 

5.67 % 

5.67 % 

5.67 % 

5.67 % 

Age 30 

4.20 % 

4.20 % 

4.20 % 

4.20 % 

Age 35 

3.31 % 

3.31 % 

3.31 % 

3.31 % 

Age 40 

2.23 % 

2.23 % 

2.23 % 

2.23 % 

Age 45 

1.21 % 

1.21 % 

1.21 % 

1.21 % 

Age 50 

0.55 % 

0.55 % 

0.55 % 

0.55 % 

Pension benefits 





The amounts recognised in the Statement of 
Financiai Position were determined as foiiows: 





Present value of funded obligations 

10,832,916 

10,227,913 

10,832,916 

10,227,913 

Present value of the defined benefit obligation- 
partially or wholly funded 

(11,808,164) 

(10,207,115) 

(11,808,164) 

(10,207,115) 

Liability (Surplus) in the Statement of Financial 
Position 

(975,248) 

20,798 

(975,248) 

20,798 

Net expense recognised in the statement of financial performance 




Service cost 

(116,976) 

(120,028) 

(116,976) 

(120,028) 

Interest cost 

(838,262) 

(757,257) 

(838,262) 

(757,257) 

Expected return on assets 

1,056,768 

914,348 

1,056,768 

914,348 

Net actuarial gains / (losses) recognised in the 

788,572 

48,309 

788,572 

48,309 

year 

Change in Par.68 Limit 

(657,577) 

_ 

(657,577) 

_ 

Gains on Settlements 

46,455 

- 

46,455 

- 

Active member expenses 

(2,902) 

(2,886) 

(2,902) 

(2,886) 


276,078 

82,486 

276,078 

82,486 


47 










396 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 

2013 

2014 

2013 

20. EMPLOYEE BENEFIT OBLIGATIONS (continued) 





Movement in the defined benefit obiigation is as foiiows: 





Balance at beginning of the year 

(10,227,913) 

(9,486,188) 

(10,227,913) 

(9,486,188) 

Current service cost 

(116,976) 

(120,028) 

(116,976) 

(120,028) 

Contributions by plan participants 

(23,892) 

(25,800) 

(23,892) 

(25,800) 

Actuarial losses 

(703,382) 

(445,505) 

(703,382) 

(445,505) 

Interest cost 

(838,262) 

(757,257) 

(838,262) 

(757,257) 

Benefit payments 

558,594 

606,865 

558,594 

606,865 

Settlement 

518,915 

- 

518,915 

- 

Balance at end of year 

(10,832,916) 

(10,227,913) 

(10,832,916) 

(10,227,913) 

Movement in the fair value of plan assets is as follows: 





Opening Fair Value of Plan assets 

10,207,115 

9,315,204 

10,207,115 

9,315,204 

Actuarial gains (losses) 

1,491,954 

493,814 

1,491,954 

493,814 

Employer contributions 

62,391 

67,700 

62,391 

67,700 

Employee contributions 

23,892 

25,800 

23,892 

25,800 

Benefit payments 

(558,594) 

(606,865) 

(558,594) 

(606,865) 

Expected return on assets 

1,056,768 

914,348 

1,056,768 

914,348 

Settlement 

(472,460) 

- 

(472,460) 

- 

Active member expenses 

(2,902) 

(2,886) 

(2,902) 

(2,886) 

Balance at end of year 

11,808,164 

10,207,115 

11,808,164 

10,207,115 

Disclosure in terms GRAP 25 





Defined benefit obligation 

(10,832,916) 

(10,227,913) 

(10,832,916) 

(10,227,913) 

Plan assets 

11,808,164 

10,207,115 

11,808,164 

10,207,115 

Funded status (before applying the net asset limit) 

975,248 

(20,798) 

975,248 

(20,798) 

Experience adjustments on plan liabilities 

(595,897) 

(382,903) 

(595,897) 

(382,903) 

Experience adjustments on plan assets 

1,491,954 

493,814 

1,491,954 

493,814 


2,846,553 

69,315 

2,846,553 

69,315 

Key assumptions used 





The principal actuarial assumptions used were as follows: 





Discount rate 

8.70 

8.40 

8.70 

8.40 

Expected return on plan assets 

10.90 

10.60 

10.90 

10.60 

Future salary increases 

7.40 

6.90 

7.40 

6.90 

Future pension increases 

6.40 

5.90 

6.40 

5.90 


48 













397 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


20. EMPLOYEE BENEFIT OBLIGATIONS (continued) 


Examples of mortality rates used were as follows: Active members (All): 


Age 20 

0.13 

% 

0.13 

% 

0.13 

% 

0.13 

% 

Age 25 

0.18 

% 

0.18 

% 

0.18 

% 

0.18 

% 

Age 30 

0.25 

% 

0.25 

% 

0.25 

% 

0.25 

% 

Age 35 

0.37 

% 

0.37 

% 

0.37 

% 

0.37 

% 

Age 40 

0.52 

% 

0.52 

% 

0.52 

% 

0.52 

% 

Age 45 

0.72 

% 

0.72 

% 

0.72 

% 

0.72 

% 

Age 50 

0.99 

% 

0.99 

% 

0.99 

% 

0.99 

% 

Age 55 

1.37 

% 

1.37 

% 

1.37 

% 

1.37 

% 

Age 60 

1.89 

% 

1.89 

% 

1.89 

% 

1.89 

% 


Financial Position of KZN Municipal Pension Fund and Durban Pension Fund: 

All Councillors and employees belong to 1 of 8 retirement funds. The KZN Municipal Pension Fund is a defined 
contribution fund and became operational from 2001-11-01. 


49 







398 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


20. EMPLOYEE BENEFIT OBLIGATIONS (continued) 

The KZN Municipal Pension Fund is a defined contribution fund and became operational on 2001-11-01. It presently has 
a membership of over 18000 employees with a total pension accumulation exceeding R8 billion. 

The Funding Level of the KZN Municipal Pension Fund as at December 2013 was 100.29% a surplus of R22 669 482 
accumulating due to timing differences between processing of transactions and the effective date of the asset manager 
investing and/or disinvesting monies. The tolerance level that would trigger a distribution to members is 100,5%. 

As at 01/01/2014 the total funeral, death, and disability cost as a percentage of payroll for a member with more than 3 
years of service was 3,038%. With Member Record Admin Cost at 0,176% of payroll and Trustee, Printing, Legal, Front 
Office, and Fund Staff costs of 0,194% of total payroll, the member enjoyed a total charge of only 3,408% of payroll. This 
means that 14,592% of a members pensionable salary is deposited into the members pension accumulation out of the 
Employer contribution of 18% and in addition members add their own contribution. The Employee (or member) is allowed 
a variable contribution rate elected every year of either 5%, 7.5%, 9%, 12%. 15%, or 18%. Members who have less than 3 
years of service do not have the same death benefit cover but then their costs for insurance are 1,522% less, a further 
addition to the pension accumulation for this category of members. 

Of the R8b invested only R600m is invested by members choosing the more cautious portfolios. There is some R6b in the 
default Managed portfolio, a fund that returned 20,2% for the year as at 31 March 2014. Another R600m is in the 
Aggressive portfolio. This portfolio has been modified in recent time to include more equity investments both locally, 
offshore, and within the African continent. The Aggressive fund return for the same 12 month period was 23,41%. The 
balance of about R800m is held in the life staging portfolios designed to progressively protect capital for those members 
older than 55. 

The Fund has only 13 pension annuitants as at 13 May 2014 which is disappointing given the attractive fee structure that 
is available relative to the living annuity offerings in the insurance industry. Trustees are concerned that members are 
being drawn to Insurance industry annuities that are heavily invested in commercial and industrial property on the basis 
that these investments have returned high dividends in recent years. The insurance sector is not regulated in terms of 
investment asset class mix whereas the in-house annuity is governed by regulations on prudent investment allocation. 

The trustees and officers of the fund continue to contain investment fees and other fund costs whilst striving to provide 
members with a modern pension arrangement. 

The external auditors of the Fund continue to be satisfied with the running of the KZN Municipal Pension Fund. 

The Financial Services Board also conducted Compliance Audit of the Fund during the year. (The FSB report on their 
audit is still awaited but the Fund is confident that the audit went well). 

The Durban Pension Fund is a defined benefit fund administered by the eThekwini Municipality. The rules of the Fund 
require that the financial condition of the Fund be investigated and reported on by the Fund's actuary annually. 
The interim valuation as at 2014-01-01 revealed that the Fund was 103.7% funded(2013-01-01: 100%). The value of 
assets amounted to R10,9 billion (2013-01-01: R9.9 billion) whist the value of liabilities was determined to be R10,5 billion 
(2013-01-01: R9.9 billion). The active member pool solvency reserve is 64.1% funded (2013-01-01: 0.1%) and the 
pensioner pool solvency reserve is 100% funded (2013-01-01: 54.4%). Members and the employer contribute at the rate 
of 7.5% and 19.68% respectively with a further contribution of 9,57% being funded by the employer surplus account. In 
compliance with the Fund's rules an amount of R62,4 million (2012/13: R67.7 million) was contributed by Council in 
respect of retirement funding during the period under review 

Muiti-Empioyer Retirement Benefit Pians: 


50 







399 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


20. EMPLOYEE BENEFIT OBLIGATIONS (continued) 

Certain members and Council contribute to the Natal Joint Superannuation, Retirement and Provident Funds (NJMP), 
SALA, Multi Linked and GEPF. Employees of eThekwini Municipality make up less than 1% of the total members of the 
NJMPF. eThekwini's liability in these funds could not be determined owing mainly to the assets not being allocated to 
each employer and one set of financials being compiled for each fund and not for each employer. 

Two of the NJMP retirement funds are defined benefit in nature. The third fund is a provident fund which is a defined 
contribution fund. The last actuarial valuations of the 2 Defined Benefit Funds (March 2013) showed both funds to be 
fully funded as regards pensions in payment, but underfunded as regards contributing members - thus the employers are 
paying a surcharge. A primary reason for the surcharge is that salaries have been increased well in excess of inflation 
over the past number of years, which has increased the liabilities of the 2 Defined Benefit Funds. Surcharges were 
updated to 17.5% for Retirement fund and 9.5% for Superannuation Fund and are applicable for 8 years from July 2012 at 
which time it is expected that both funds will be fully funded. The 2013 valuations are still in progress, outcomes will 
only be known by November at the annual AGM of funds. A special additional surcharge is levied individually on 
municipalities where an employee has received a salary increase that is deemed to be excessive in comparison with the 
other municipalities. This has the effect of removing some of the cross-subsidisation between municipalities. Other than 
this, all municipalities are treated in the same manner 

Each of the funds undergoes an actuarial valuation each year in order to monitor its financial condition. If necessary the 
Committee of Management levies a surcharge until the fund is in a sound financial condition, as is currently the case. In 
this way the Committee ensures that the funds are able to afford the promised benefits. 

The asset composition of the Durban Pension Fund is summarised beiow: 


Cash 

10.41 % 

8.70 % 

10.41 % 

8.70 % 

Equity 

29.10 % 

27.76 % 

29.10 % 

27.76 % 

Bonds 

40.59 % 

40.89 % 

40.59 % 

40.89 % 

Property 

3.73 % 

3.88 % 

3.73 % 

3.88 % 

Foreign 

15.38 % 

18.28 % 

15.38 % 

18.28 % 

ether 

0.79 % 

0.49 % 

0.79 % 

0.49 % 


- 

- 

- 

- 

Unspent conditionai grants and receipts 





Unspent conditionai grants and receipts comprises of: 





Unspent conditionai grants and receipts 

Electricity Demand Side Management Grant 

14,308 


14,308 


Department of Co-Gperative Governance and 

Traditional Affairs 

7,006 

9,074 

7,006 

9,074 

Department of Transport and Public Transport 

Infrastructure 

819,688 

597,620 

819,688 

597,620 

Department of Environmental Affairs 

2,242 

1,427 

2,242 

1,427 

Expanded Public Works Incentive Grant 

5,519 

17,885 

5,519 

17,885 

Neighbourhood Development Partnership 

3,181 

4,395 

3,181 

4,395 

Department of Arts and Culture 

236,617 

90,856 

236,617 

90,856 

Vuna Awards 

875 

1,910 

875 

1,910 

Grant Accreditation 

13,884 

- 

13,884 

- 

Department of Fluman Settlements 

107,508 

172,564 

107,508 

172,564 

Lamontville and R293 Trf Deeds/Administration 

1,556 

1,556 

1,556 

1,556 

European Union 

7,456 

8,043 

7,456 

8,043 

Donations and Public Contributions 

58,183 

77,594 

58,183 

77,594 

DAN IDA 

- 

295 

- 

295 

D Moss Interest and Land Sales 

8,073 

8,073 

8,073 

8,073 

Infrastructure Skills grant 

- 

7,234 

- 

7,234 

ether Grants and Subsidies 

42,151 

40,739 

42,151 

40,739 


1,328,247 

1,039,265 

1,328,247 

1,039,265 


51 









400 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

Notes to the Annual Financial Statements 

Group Municipality 

Figures in Rand 2014 2013 2014 2013 

21 . EMPLOYEE BENEFIT OBLIGATIONS (continued) 

These amounts are invested in a ring-fenced investment until utilised. See note 28 for more detail. 


52 







401 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

Notes to the Annual Financial Statements 




Group 

Municipality 

Figures in Rand 


2014 

2013 

2014 

2013 

22. Provisions 






Reconciiiation of provisions - Group - 2014 

Opening 

Additions 

Utilised during 

Interest 

Total 


Balance 


the year 

Charged 


Current 

Clearance of Alien Vegetation 

15,427 

14,906 

(14,454) 


15,879 

Performance bonus 

21,138 

10,514 

(15,496) 

- 

16,156 

Long service awards 

Non-current 

11,336 

51,877 

(774) 

- 

62,439 

Environmental rehabilitation: Landfill sites 

73,220 

2,897 

- 

6,590 

82,707 

Clearance of Alien Vegetation 

30,084 

7,557 

- 

- 

37,641 

Long service awards 

263,067 

355,750 

- 

- 

618,817 


414,272 

443,501 

(30,724) 

6,590 

833,639 

Reconciiiation of provisions - Group - 2013 

Opening 

Additions 

Utilised during 

Interest 

Total 


Balance 


the year 

Charged 


Current 

Clearance of Alien Vegetation 

1 1 ,646 

14,361 

(10,580) 


15,427 

Performance bonus 

18,678 

10,763 

(8,303) 

- 

21,138 

Long service awards 

Non-current 

8,477 

3,358 

(499) 

- 

11,336 

Environmental rehabilitation: Landfill sites 

66,306 

1,278 

- 

5,636 

73,220 

Clearance of Alien Vegetation 

21,900 

8,184 

- 

- 

30,084 

Long service awards 

200,054 

63,013 

- 

- 

263,067 


327,061 

100,957 

(19,382) 

5,636 

414,272 

Reconciiiation of provisions - Municipaiity - 

2014 






Opening 

Additions 

Utilised during 

Interest 

Total 


Balance 


the year 

Charged 


Current 

Clearance of Alien Vegetation 

15,427 

14,906 

(14,454) 


15,879 

Performance bonus 

16,647 

10,401 

(15,496) 

- 

11,552 

Long service awards 

Non-current 

11,336 

51,877 

(774) 

- 

62,439 

Environmental rehabilitation: Landfill sites 

73,220 

2,897 

- 

6,590 

82,707 

Clearance of Alien Vegetation 

30,084 

7,557 

- 

- 

37,641 

Long service awards 

263,067 

355,750 

- 

- 

618,817 


409,781 

443,388 

(30,724) 

6,590 

829,035 

Reconciiiation of provisions - Municipaiity - 

2013 






Opening 

Additions 

Utilised during 

Interest 

Total 


Balance 


the year 

Charged 


Current 

Clearance of Alien Vegetation 

1 1 ,646 

14,361 

(10,580) 


15,427 

Performance bonus 

14,796 

10,154 

(8,303) 

- 

16,647 

Long service awards 

Non-current 

8,477 

3,358 

(499) 

- 

11,336 

Environmental rehabilitation: Landfill sites 

66,306 

1,278 

- 

5,636 

73,220 

Clearance of Alien Vegetation 

21,900 

8,184 

- 

- 

30,084 

Long service awards 

200,054 

63,013 

- 

- 

263,067 


323,179 

100,348 

(19,382) 

5,636 

409,781 


53 














402 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 

2013 

2014 

2013 

22. Provisions (continued) 

Non-current liabilities 

739,165 

366,371 

739,165 

366,371 

Current liabilities 

94,474 

47,901 

89,870 

43,410 


833,639 

414,272 

829,035 

409,781 


Environmental rehabilitation: Landfill sites 

The Landfill Rehabilitation Provision is created for the rehabilitation of the current operational sites at the future estimated 
time of closure. The value of the provision is based on the expected future cost to rehabilitate the various sites discounted 
back to the balance sheet date at the cost of capital, which is currently 9%. The Municipality has an obligation to 
rehabilitate these Landfill sites. The cost of such property includes the initial estimate of the costs of rehabilitating the land 
and restoring the site on which it is located, the obligation for which a municipality incurs as a consequence of having 
used the property during a particular period for landfill purposes. The Municipality estimates the useful lives and makes 
assumptions as to the useful lives of these assets, which influence the provision for future costs. 

The asset is measured using the cost model: 

(a) subject to (b), changes in the liability are added to, or deducted from, the cost of the related asset in the current 
period; 

(b) if a decrease in the liability exceeds the carrying amount of the asset, the excess is recognised immediately in surplus 
or deficit; and 

(c) if the adjustment results in an addition to the cost of an asset, the Municipality considers whether this is an indication 
that the new carrying amount of the asset may not be fully recoverable. If it is such an indication, the asset is tested for 
impairment by estimating its recoverable amount, and any impairment loss is recognised in surplus or deficit. 

The following assumptions were used to calculate the provision: 

(1) Discount rate of 9% (2013: 8.5%); 

(2) Inflation rate of 6.6% (2013: 5.5%); 

(3) Total area expected to be rehabilitated: 800 426 square metres (2013: 800 426 square meters); 

(4) Rate per square metre: R138.75 (2013: R130.16) escalating every year by inflation rate; 

(5) Total area to be rehabilitated can be reconciled to the different sites as follows: 


Bisasar 

360,326 

360,326 

Maranhill 

193,000 

193,000 

Wyebank 

25,000 

25,000 

Shallcross 

29,800 

29,800 

Buffelsdraai 

192,300 

192,300 


Each of the landfill sites have a different lifespan for rehabilitation ranging from 2 years to 58 years and are best estimates 
provided for by the respective landfill site engineers. The useful life for the Bisasar Landfill site has been extended by 3 
years as at 01 July 2012. 

The total rehabilitation can be reconciled as follows: 


Name 

0/ Balance 

Interest 

Additions 

C/ Balance 

Bisasar 

43,116 

3,880 

2,931 

49,927 

Maranhill 

19,518 

1,758 

711 

21,987 

Wyebank 

2,676 

241 

125 

3,042 

Shallcross 

2,849 

256 

75 

3,180 

Buffelsdraai 

5,061 

455 

(945) 

4,571 

Totals 

73,220 

6,590 

2,897 

82,707 


Clearance of Alien Vegetation 


54 












403 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


22. Provisions (continued) 

The clearing of alien vegetation is required in terms of the Conservation of Agricultural Resources Act, 1983 (Act No. 43 
of 1 983). The Municipality has therefore made a provision for its obligation, based on future estimated costs for the next 3 
years. This provision will be reviewed annually to reflect the fair value of the obligation. 

Provision for invasive alien plant control / eradication is based on reliable data for growth rates, infestation rates and 
density. A detailed analysis, based on current costs of alien plant clearing, was undertaken. Input from numerous field 
staff was obtained with regard to the level of infestation of currently managed areas. 

Data used for calculations: 

Municipal owned land within the municipal area: 18 000 Ha 

Municipal owned open space currently managed (prioritised): 2 200 Ha 

Current approximate cost of clearing very high infestations of lAP's: R9 153.00 / Ha 

(2013: R8 483.00 / Ha). 

Performance Bonus 

All employees who are employed in accordance with provisions of section 57 of the Municipal Systems Act are required, 
in terms of their employment contracts, to sign a performance agreement and performance plan in terms of which their 
performance is assessed annually. The criteria in terms of which they are assessed is linked to the I.D.P. 8-point plan. 
Strategic focus areas and key performance indicators are set out in the plan, together with targets and weightings for 
each target. Employees are assessed quarterly and against these targets and a final assessment is conducted at the end 
of the financial year. The performance bonus paid to each employee is dependant on the overall score achieved in this 
assessment and is subject to the approval of the City Manager. 

• Long service awards 

Revised Conditions of Service for employees are currently being negotiated. The interim conditions of service for 
Employees are as follows: 

Long Service Leave will accrue as follows: 


Long Service Leave 

5 Day 

5 Day 

6 Day 

6 Day 


Worker- 

Worker- 

Worker- 

Worker- 


No. of days 

Accum per 

No. of days 

Accum per 


p.a. 

milestone 

p.a. 

milestone 

After 20 years 

2 

25 

3 

30 

After 30 years 

4 

35 

5 

50 

After 40 years 

5 

15 

6 

10 

Maximum Accumulation 

- 

75 

14 

90 


Employees who achieve 25 years service receive a once off cash payment of R500 and upon achievement of 40 years 
service, employees receive a gold wrist watch or a comparable gift. 

Employees who achieve 40 years service will be granted 20 days paid leave (once off) and a scroll duly signed by the 
Mayor in recognition of loyal service rendered to the Council. 

A long Service Allowance will accrue as follows: 

- 2% of monthly salary at 1 5-1 9 years 

-3% of monthly salary at 20-24 years 

-4% of monthly salary at 25-29 years 

-5% of monthly salary at 30-35 years 

-6% of monthly salary at 35 years or more 

The abovementioned is limited to a maximum of R 1081.82 

The provision is an estimate of the long service award based on the monthly salaries rate at 30 June 2014 (2013: 30 June 
2013). It has been assumed that the staff turnover rate will be insignificant based on historical data. A discount rate of 9% 
(2013: 8.5% ) was used based on internal rate of return. 


55 









404 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


22. Provisions (continued) 

Summary of economic assumptions (rates are per annum) and key demographic assumptions 


Municipality 

Figures in Rand 



2014 2013 

Gross discount rate 



8.50% 8.50% 

Salary inflation 



7.40% 6.00% 

Net discount rate 



1 .02% 2.36% 

Number of trading days per year 



252 260 

Assumed retirement age 



63 years for 63 years for 




males and males and 




females females 

- 

Summary of membership data used in the vaiuation 




Current empioyees 

30 June 2014- 

30 June 2014- 

30 June 2013 - 30 June 2013 - 


Males 

Females 

Males Females 

Number of current employees 

16,461 

8,848 

14,215 6,746 

Average age of employees 

41.9 

38.4 

42.5 39.1 

Average years of past service 

11.3 

6.8 

12.6 7.8 

Average annual salary (R) 

154,439 

144,523 

160,791 156,205 


- 

- 

- 

Reconciliation of Defined Benefit Obligation 


Opening Balance 

274,403 

208,531 

Additions 

- 

66,371 

Current Service cost 

9,869 

- 

Interest cost 

8,189 

- 

Change in model 

(307) 

- 

Applying the projected unit credit method 

(142,986) 

- 

Correction of salaries 

(31,967) 

- 

Past service cost 

574,009 

- 

Acturial losses - change in financial assumptions 

15,850 

- 

Acturial gains - change in demographic assumptions 

(9,403) 

- 

Acturial gains - experience variance 

(4,500) 

- 

Cash movements - Benefit payments 

(11,901) 

(499) 


681,256 

274,403 

Pre-retirement mortality (only for 30 June 2014) 



Age 

Males 

Females 

20 

0.13% 

0.13% 

25 

0.18% 

0.18% 

30 

0.25% 

0.25% 

35 

0.37% 

0.37% 

40 

0.52% 

0.52% 

45 

0.72% 

0.72% 

50 

0.99% 

0.99% 

55 

1 .37% 

1 .37% 

60 

1 .89% 

1 .89% 


- 

- 


56 














405 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


22. Provisions (continued) 

Withdrawai assumption (oniy for 30 June 2014) 


Age 



Males 

Females 

20 



7.85% 

7.85% 

25 



5.67% 

5.67% 

30 



4.20% 

4.20% 

35 



3.31% 

3.31% 

40 



2.23% 

2.23% 

45 



1.21% 

1.21% 

50 



0.55% 

0.55% 

55 



0.00% 

0.00% 

60+ 



0.00% 

0.00% 




- 

- 

Housing deveiopment fund 





Accumulated Surplus 

(96,615) 

(6,525) 

(96,615) 

(6,525) 

Loans extinguished by Government on 1 April 

1998 

266,979 

266,979 

266,979 

266,979 


170,364 

260,454 

170,364 

260,454 

The housing deveiopment fund is represented by the foiiowing assets and iiabiiities 



Property, plant and equipment 

67,918 

69,374 

67,918 

69,374 

Housing selling scheme loans 

65,568 

129,584 

65,568 

129,584 

Housing rental Debtors 

11,168 

28,271 

11,168 

28,271 

Housing other Debtors 

247 

328 

247 

328 

Housing inventory 

36 

65 

36 

65 

Investments 

46,892 

50,197 

46,892 

50,197 

Investment properties 

16,446 

16,811 

16,446 

16,811 

Bank and cash 

13,202 

34,981 

13,202 

34,981 

Assets 

221,477 

329,611 

221,477 

329,611 

Long-term liabilities 

244 

306 

244 

306 

Unspent Conditional Grants 

14,063 

39,302 

14,063 

39,302 

Creditors 

16,987 

9,730 

16,987 

9,730 

Government Grant Reserve 

19,819 

19,819 

19,819 

19,819 

Liabiiities 

51,113 

69,157 

51,113 

69,157 

Totai Housing Deveiopment Fund Assets and 
Liabiiities 

170,364 

260,454 

170,364 

260,454 

Service charges 





Sale of electricity 

9,421,541 

9,149,003 

9,449,095 

9,174,721 

Sale of water 

2,295,911 

2,061,896 

2,302,765 

2,066,325 

Solid waste 

470,573 

440,717 

472,127 

442,348 

Sewerage and sanitation charges 

726,846 

661,402 

726,846 

661,402 

Other service charges 

161,863 

154,283 

161,863 

154,283 

Totai service charges 

13,076,734 

12,467,301 

13,112,696 

12,499,079 


57 













406 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

Notes to the Annual Financial Statements 




Group 

Municipality 

Figures in Rand 

2014 

2013 

2014 

2013 

25. 

Other income 






Sundry Income 

540,937 

546,710 

319,610 

344,970 


Fuel Levy 

1,822,833 

1,690,569 

1,822,833 

1,690,569 


Moses Mabhida 

12,028 

10,681 

12,028 

10,681 



2,375,798 

2,247,960 

2,154,471 

2,046,220 


Refer to Appendix D for a Statement of Financial Performance: Moses Mabhida Stadium. 



26. 

Interest revenue 






Interest revenue 

Interest earned - External Investments 

334,874 

303,994 

320,321 

291,492 


Interest earned - Outstanding Debtors 

143,037 

112,689 

143,037 

112,689 



477,911 

416,683 

463,358 

404,181 

27. 

Property rates 






Rates received 






Residential 

1,856,376 

1,728,944 

1,856,376 

1,728,944 


Business / Commercial 

1,694,702 

1,527,325 

1,704,306 

1,531,972 


Unauthorised / Illegal development 

32,610 

17,620 

32,610 

17,620 


Development Phasing 

3,051 

- 

3,051 

- 


Agricultural 

1,680 

4,235 

1,680 

4,235 


Vacant land 

355,272 

320,755 

355,272 

320,755 


Industrial 

1,341,318 

1,304,788 

1,341,318 

1,304,788 


Public Service Infrastructure 

13,896 

15,218 

13,896 

15,218 


Total Assessment Rates 

5,298,905 

4,918,885 

5,308,509 

4,923,532 


Valuations 






Residential 

266,601,096 

263,925,286 

266,601,096 

263,925,286 


Business / Commercial 

89,480,353 

86,615,122 

89,480,353 

86,615,122 


Unauthorised / Illegal development 

539,224 

702,083 

539,224 

702,083 


Agricultural 

2,751,760 

2,436,976 

2,751,760 

2,436,976 


Vacant land 

12,091,994 

11,884,164 

12,091,994 

11,884,164 


Industrial 

45,837,315 

47,274,599 

45,837,315 

47,274,599 


Public Service Infrastructure 

16,121,656 

15,678,604 

16,121,656 

15,678,604 


Development Phasing Line 

148,972 

145,392 

148,972 

145,392 


Total Property Valuations 

433,572,370 

428,662,226 

433,572,370 

428,662,226 


The following are the rate randages that were applied to the valuations in respect of the various categories: Residential - 


R0.00976 (2013: R0.00914); Agriculture - 

R0.00244 (2013: R0.00228); 

Vacant Land - 

R0.04674 (2013: R0.04376); 


Industrial - R0.02856 (2013: R0.02674); 

Business and Commercial - 

R0.02213 (2013 

: R0.02072); 

Public Service 


Infrastructure - R 0.00244 (2013: RO. 00228). All residential property owners are exempt from paying rates on the first 
R120 000 (2013: R120 000) of their property value. Pensioners, child-headed households, disability grantees and the 
medically boarded are exempt from paying rates on the first R400 000 (2013: R400 000) of their property value (inclusive 
of the R120 000 referred to earlier). No rates are levied on the first R30 000 (2013: R30 000) value of vacant land. 


58 













407 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

Notes to the Annual Financial Statements 



Group 


Municipality 

Figures in Rand 

2014 

2013 

2014 

2013 

28. Government grants and subsidies 

Equitable Share 

1,869,806 

1,769,412 

1,869,806 

1,769,412 

Expanded Public Works Programme Incentive 

59,747 

24,471 

59,747 

24,471 

European Union 

587 

380 

587 

380 

Primary Flealth Care Provincial Subsidy 

97,088 

68,957 

97,088 

68,957 

Department of Transport and Public Transport 

285,298 

128,520 

285,298 

128,520 

infrastructure 

Department of Enviromental Affairs 

7,435 

2,768 

7,435 

2,768 

Vuna Awards 

1,036 

188 

1,036 

188 

Demand Side Management 

692 

31,772 

692 

31,772 

Urban Settlement Development Grant 

1,580,999 

1,315,929 

1,580,999 

1,315,929 

Other Grants 

33,701 

67,821 

33,702 

67,821 

Public Contributions 

21,229 

46,916 

21,229 

46,916 

Neighbourhood Development Partnership 

4,769 

3,514 

4,769 

3,514 

Department of Human Settlements 

150,449 

153,030 

150,449 

153,030 

Grant Accreditation 

939 

4,584 

939 

4,584 

Department of Co-Operative Government and 

6,068 

1,793 

6,068 

1,793 

Traditional Affairs 

Metropolitan Transport Authority-Taxi Ranks 

. 

32 

. 

32 

Department of Arts and Culture 

13,084 

17,601 

13,084 

17,601 

Public Transport Network Operations 

71,395 

- 

71,395 

- 

Intergrated City Developement Grant 

9,539 

- 

9,539 

- 

Infrastructure Skills Grant 

18,534 

19,773 

18,534 

19,773 

D Moss Land Sales and Interest 

- 

289 

- 

289 


4,232,395 

3,657,750 

4,232,396 

3,657,750 

Conditional and Unconditional 

Included in above are the following grants and subsidies received: 





Equitable Share 





Current-year receipts 

1,869,806 

1,769,412 

1,869,806 

1,769,412 

Conditions met - transferred to revenue 

(1,869,806) 

(1,769,412) 

(1,869,806) 

(1,769,412 


In terms of the Constitution, this grant is used to subsidise the provision of basic services to indigent community 
members. 

D Moss Interest and Land Sales 


Balance unspent at beginning of year 

8,073 

8,073 

8,073 

8,073 

The above relates to funding for the acquisition of D Moss land. 





Department of Environmental Affairs 

Balance unspent at beginning of year 

1,427 

4,195 

1,427 

4,195 

Current-year receipts 

8,250 

- 

8,250 

- 

Conditions met - transferred to revenue 

(7,435) 

(2,768) 

(7,435) 

(2,768) 


2,242 

1,427 

2,242 

1,427 


Conditions still to be met - remain liabilities (see note 21). 


59 













408 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


28. Government grants and subsidies (continued) 

Funding was obtained from various sources and local industries for the implementation of the South Durban Basin Multi 
Point Plan. The expenditure is incurred over a multi year period based on the rollout of the projects per programme. 
Further funding will be expended based on the outcome of the Air Quality Management Plan which is currently underway. 
This grant is received from Department of Environmental Affairs for the National Greening Programme and the promotion 
of non-motorised transport with the aim of reducing gas emissions. 

Department of Transport and Pubiic Transport infrastructure 


Balance unspent at beginning of year 

597,620 

168,697 

597,620 

168,697 

Current-year receipts 

507,366 

599,702 

507,366 

599,702 

Conditions met - transferred to revenue 

(285,298) 

(128,520) 

(285,298) 

(128,520) 

Grant withheld 

- 

(42,259) 

- 

(42,259) 


819,688 

597,620 

819,688 

597,620 

Conditions still to be met - remain liabilities (see note 21). 





This grant is received from the Department of Transport for the design and construction of the dedicated public transport 

lanes, stations and other related infrastructure as part of the Integrated Rapid Public Transport Network. 


Neighbourhood Partnership Deveiopment 





Balance unspent at beginning of year 

4,395 

- 

4,395 

- 

Current-year receipts 

3,555 

10,000 

3,555 

10,000 

Conditions met - transferred to revenue 

(4,769) 

(3,514) 

(4,769) 

(3,514) 

Grant witheld 

- 

(2,091) 

- 

(2,091) 


3,181 

4,395 

3,181 

4,395 

Conditions still to be met - remain liabilities (see note 21). 





Focus of the grant is to create economic infrastructure in dormitory townships that will attract private sector investment. 

European Union 





Balance unspent at beginning of year 

8,043 

8,405 

8,043 

8,405 

Current-year receipts 

- 

18 

- 

18 

Conditions met - transferred to revenue 

(587) 

(380) 

(587) 

(380) 


7,456 

8,043 

7,456 

8,043 

Conditions still to be met - remain liabilities (see note 21). 





Funds used for Capacity Enhancement/ Knowledge Management in terms of close our report 



Other Grants and Subsidies 





Balance unspent at beginning of year (as 
previously stated) 

40,739 

41,371 

40,739 

41,371 

Prior year adjustments: prior to 2012/13 

- 

(574) 

- 

(574) 

Current-year receipts 

35,113 

67,763 

35,114 

67,763 

Conditions met - transferred to revenue 

(33,701) 

(67,821) 

(33,702) 

(67,821) 


42,151 

40,739 

42,151 

40,739 


Conditions still to be met - remain liabilities (see note 21). 

Other Grants and subsidies were utilised during the year to fund various Council projects. 


60 















409 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

Notes to the Annual Financial Statements 



Group 


Municipality 

Figures in Rand 

2014 

2013 

2014 

2013 

28. Government grants and subsidies (continued) 





Department of Human Settiements 





Balance unspent at beginning of year 

Current-year receipts 

Conditions met - transferred to revenue 

172,564 

85,393 

(150,449) 

143,291 

182,303 

(153,030) 

172,564 

85,393 

(150,449) 

143,291 

182,303 

(153,030) 


107,508 

172,564 

107,508 

172,564 


Conditions still to be met - remain liabilities (see note 21). 

Funding for the administration of Flostels in KwaZulu Natal. 

Lamontville R293 Trf Deeds/ Administration 

Balance unspent at beginning of year 1,556 1,556 1,556 1,556 


Conditions still to be met - remain liabilities (see note 21). 

This grant was used to fund the maintenance of the Lamontville houses as well as the transfer of the R293 township 
houses to the beneficiaries. 

DANiDA 

Balance unspent at beginning of year 295 295 295 295 

Grant Paid back to the Funder (295) - (295) 


295 


295 


Conditions still to be met - remain liabilities (see note 21). 

These funds are used to enhance existing capacity in Urban Environmental Management. This programme prioritizes 
poverty reduction and building institutional capacity for enhanced local level delivery of environmentally sustainable 
services. 

Grant Accreditation 

Balance unspent at beginning of year 
Current-year receipts 
Conditions met - transferred to revenue 

13,884 - 13,884 


14,823 

(939) 


59 

4,525 

(4,584) 


14,823 

(939) 


59 

4,525 

(4,584) 


Conditions still to be met - remain liabilities (see note 21). 


These funds are for the administrative support provided for RDP houses. 

Department of Co-operative Governance and Traditionai Affairs 


Balance unspent at beginning of year 

Current-year receipts 

Conditions met - transferred to revenue 


9,074 

4,000 

(6,068) 


10,867 

(1,793) 


9,074 

4,000 

(6,068) 


10,867 

(1,793) 


7,006 9,074 7,006 9,074 


Conditions still to be met - remain liabilities (see note 21). 

Funds used for the construction of a Factory for Flazelmere Lungisa Indlela Village and to draft a land use management 
scheme for Shongweni Local Area Plan. 


61 














410 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


28. Government grants and subsidies (continued) 
Donations and Pubiic Contributions 


Balance unspent at beginning of year 

Current-year receipts 

Conditions met - transferred to revenue 

Reversal of prior year accrual 

77,594 

1,818 

(21,229) 

125,448 

862 

(46,916) 

(1,800) 

77,594 

1,818 

(21,229) 

125,448 

862 

(46,916) 

(1,800) 


58,183 

77,594 

58,183 

77,594 

Conditions still to be met - remain liabilities (see note 21). 

The grants were received from various organisations to finance various developments. In 

the prior year this includes 

development of Nandi Drive and various roads in Flillcrest. 





Department of Arts & Cuiture 

Balance unspent at beginning of year 

90,856 

5,482 

90,856 

5,482 

Current-year receipts 

158,845 

102,975 

158,845 

102,975 

Conditions met - transferred to revenue 

(13,084) 

(17,601) 

(13,084) 

(17,601) 


236,617 

90,856 

236,617 

90,856 

Conditions still to be met - remain liabilities (see note 21). 

This Grant is for the operating expenditure for libraries and 

museums and capital expenditure for the 

upgrade of the 

Central Library . 





Metropoiitan Transport Authority-Taxi Ranks 

Balance unspent at beginning of year 

- 

32 

- 

32 

Conditions met - transferred to revenue 

- 

(32) 

- 

(32) 


- 

- 

- 

- 

Conditions still to be met - remain liabilities (see note 21). 

Funding from eThekwini Transport fund to contribute towards the upgrading of Taxi Ranks. 



Eiectricity Demand Side Management Grant 

Balance unspent at beginning of year 

- 

35,051 

- 

35,051 

Current-year receipts 

15,000 

- 

15,000 

- 

Conditions met - transferred to revenue 

(692) 

(31,772) 

(692) 

(31,772) 

Grant witheld 

- 

(3,279) 

- 

(3,279) 


14,308 

- 

14,308 

- 

Conditions still to be met - remain liabilities (see note 21). 

The grant was used to finance the gas-to-electricity capital project. 




Infrastructure Skills Grants 

Balance unspent at beginning of year 

7,234 

4,077 

7,234 

4,077 

Current-year receipts 

18,500 

22,930 

18,500 

22,930 

Grant paid back 

(7,200) 

- 

(7,200) 

- 

Conditions met - transferred to revenue 

(18,534) 

(19,773) 

(18,534) 

(19,773) 


- 

7,234 

- 

7,234 


62 















411 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


28. Government grants and subsidies (continued) 


Conditions still to be met - remain liabilities (see note 21). 

Funding to equip Engineering graduates in achieving professional registration in water and waste water related skills. 

Urban Settlements Development Grant 

Current-year receipts 1,580,999 1,315,929 1,580,999 1,315,929 

Conditions met - transferred to revenue (1,580,999) (1,315,929) (1,580,999) (1,315,929) 


Conditions still to be met - remain liabilities (see note 21). 

This grant was utilised for housing densification, water, electricity and sanitation infrastructure, sidewalks, agricultural 
gardens and various town centre renewals. This grant has replaced the former Municipal Infrastructure Grant. 

Expanded Public Works Incentive Grant 

Balance unspent at beginning of year 
Current-year receipts 
Conditions met - transferred to revenue 

5,519 17,885 5,519 17,885 


17,885 

47,381 

(59,747) 


42,356 

(24,471) 


17,885 

47,381 

(59,747) 


42,356 

(24,471) 


Conditions still to be met - remain liabilities (see note 21). 

This grant is received from the National Department of Public Works for creating job opportunities for unemployed 
persons and so allowing them economic participation and resulting in poverty alleviation. 


63 











412 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


28. Government grants and subsidies (continued) 

Vuna Awards 

Balance unspent at beginning of year 1,910 2,098 1,910 2,098 

Conditions met - transferred to revenue (1,035) (188) (1,035) (188) 

875 1,910 875 1,910 


Conditions still to be met - remain liabilities (see note 21). 

The Vuna Awards is an initiative of the Department of Provincial and Local Government, together with its partners in the 
coordination of development in local government, the South African Local Government Association, Development Bank of 
Southern Africa and the National Productivity Institute. The Vuna awards, as the awards are called, reward the 
municipalities that provide communities excellent services and governance. 

Primary Heaith Care Provinciai Subsidy 

Current-year receipts 97,088 68,957 97,088 68,957 

Conditions met - transferred to revenue (97,088) (68,957) (97,088) (68,957) 


Municipality renders health services on behalf of the Provincial Government. This grant has been used exclusively to fund 
clinic services . The conditions of the grant have been met. 

Pubiic Transport Network Operations 

Current-year receipts 71,395 - 71,395 

Conditions met - transferred to revenue (71,395) - (71,395) 


This grant is used to provide supplementary operational funding to municipalities operating approved Integrated Rapid 
Public transport Network/ Integrated Public Transport Network services. 

Intergrated City Deveiopment 

Current-year receipts 9,539 - 9,539 

Conditions met - transferred to revenue (9,539) - (9,539) 


The grant is used to provide financial incentive for metropolitan municipalities to integrate and focus their use of available 
infrastructure investment and regulatory instruments to achieve a more compact urban spatial form. 


64 












413 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

Notes to the Annual Financial Statements 



Group 


Municipality 

Figures in Rand 

2014 

2013 

2014 

2013 

29. Employee related costs 





Employee related costs - Salaries and Wages 

4,230,803 

3,856,638 

4,132,812 

3,763,136 

Medical aid and Pension Benefits 

1,099,720 

1,002,981 

1,099,720 

1,002,981 

UIF 

46,759 

40,974 

35,033 

32,090 

Leave pay provision contribution 

603,811 

182,585 

603,856 

182,157 

Travel, motorcar, accommodation, subsistence 
and other allowances 

279,197 

241,318 

279,197 

241,318 

Overtime payments 

440,478 

442,036 

437,066 

438,708 

Flousing benefits and allowances 

16,715 

17,884 

16,715 

17,884 

Floliday Bonus 

290,544 

273,378 

290,544 

273,378 

Other 

71,133 

64,438 

71,054 

60,589 

Less: Employee costs relating to capitalisation 
and maintenance of PPE 

(185,431) 

(100,602) 

(185,431) 

(100,602) 


6,893,729 

6,021,630 

6,780,566 

5,911,639 

Remuneration of the Municipal Manager - Mr. S. 

Sithole (appointed 03/01/2012) 



Annual Remuneration 

2,221 

2,062 

2,221 

2,062 

Car Allowance 

180 

180 

180 

180 

Performance Bonuse 2012 

82 

- 

82 

- 

Performance Bonus 2013 

176 

- 

176 

- 

Contributions to UIF, Medical and Pension Funds 

28 

24 

28 

24 


2,687 

2,266 

2,687 

2,266 

Remuneration of the Chief Finance Officer - Mr. K. A. Kumar 




Annual Remuneration 

1,227 

1,241 

1,227 

1,241 

Car Allowance 

425 

397 

425 

397 

Market Allowances 

242 

242 

242 

242 

Contributions to UIF, Medical and Pension Funds 

292 

272 

292 

272 

Cellphone Allowance 

18 

18 

18 

18 

Performance Bonus 201 1 

- 

119 

- 

119 

Performance Bonus 2012 

126 

- 

126 

- 

Performance Bonus 2013 

124 

- 

124 

- 

ether Allowances (Subsistence, Leave 
cashing, Backpay) 

146 

34 

146 

34 


2,600 

2,323 

2,600 

2,323 

Safety and Security - Mr. C. B. Mkhize 





Severance Pay 

_ 

261 

_ 

261 

Performance Bonus 201 1 

- 

133 

- 

133 

Performance Bonuses 2012 

140 

- 

140 

- 

Contributions to UIF, Medical and Pension Funds 

- 

6 

- 

6 

Arbitration Award 

- 

388 

- 

388 

Other Allowances (Subsistence, Leave 
cashing, Backpay) 

“ 

226 

“ 

226 


140 

1,014 

140 

1,014 

Contract Expired 30 June 2012. 





Health and Social Services - Dr. M. Gumede 





Annual Remuneration 

1,579 

1,465 

1,579 

1,465 

Car Allowance 

120 

120 

120 

120 


65 















414 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 


Municipality 

Figures in Rand 

2014 

2013 

2014 

2013 

29. Employee related costs (continued) 





Performance Bonus 201 1 

- 

139 

- 

139 

Performance Bonuses 2012 

119 

- 

119 

- 

Performance Bonus 2013 

127 

- 

127 

- 

Contributions to UIF, Medical and Pension Funds 

45 

40 

45 

40 

Cellphone Allowance 

12 

12 

12 

12 

Other Allowances (Subsistence, Leave 
cashing, Backpay) 

60 

11 

60 

11 


2,062 

1,787 

2,062 

1,787 

Governance - Mr. S. O. Cele 





Annual Remuneration 

1,227 

1,241 

1,227 

1,241 

Car Allowance 

425 

397 

425 

397 

Performance Bonus 201 1 

- 

95 

- 

95 

Performance Bonuses 2012 

77 

- 

77 

- 

Performance Bonus 2013 

82 

- 

82 

- 

Contributions to UIF, Medical and Pension Funds 

285 

267 

285 

267 

Market Allowance 

121 

121 

121 

121 

Cellphone Allowance 

12 

12 

12 

12 

Other Allowances (Subsistence, Leave 
cashing, Backpay) 

167 

29 

167 

29 


2,396 

2,162 

2,396 

2,162 

Procurement and Infrastructure - Mr. D. Naidoo 





Performance Bonus 201 1 

_ 

156 

_ 

156 

Performance Bonuses 2012 

130 

- 

130 

- 

Contributions to UIF, Medical and Pension Funds 

- 

34 

- 

34 

Severance Pay 

- 

962 

- 

962 

Other Allowances (Subsistence, Leave 
cashing, Backpay) 

" 

284 

" 

284 


130 

1,436 

130 

1,436 

Resigned:30 June 2012 





Remuneration of the Municipal Manager - Dr. M. Sutcliffe (01/07/2011 -31/12/2011) 



Performance Bonus 201 1 

_ 

254 

_ 

254 

Performance Bonuses 2012 

69 

- 

69 

- 


69 

254 

69 

254 

Corporate and Human Resources - Mrs. D. P. Nene 





Annual Remuneration 

1,449 

609 

1,449 

609 

Car Allowance 

108 

45 

108 

45 

Contributions to UIF, Medical and Pension Funds 

42 

17 

42 

17 

Other Allowances (Subsistence, Leave 
cashing, Backpay) 

122 

“ 

122 

“ 


1,721 

671 

1,721 

671 


Appointed :1 February 2013 

Sustainable Development and City Enterprises - Dr. C. N. Moyo 


66 

















415 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

Notes to the Annual Financial Statements 



Group 


Municipality 

Figures in Rand 

2014 

2013 

2014 

2013 

29. Employee related costs (continued) 





Annual Remuneration 

1,531 

642 

1,531 

642 

Car Allowance 

120 

54 

120 

54 

Contributions to UIF, Medical and Pension Funds 

49 

22 

49 

22 

Cellphone Allowance 

30 

13 

30 

13 

Other Allowances (Subsistence, Leave 
cashing, Backpay) 

1 

9 

1 

9 


1,731 

740 

1,731 

740 

Appointed : 21 January 2013 





i.C.C. - Remuneration of the Chief Executive Officer 





Annual Remuneration 

2,076 

1,760 

- 

- 

i.C.C. - Remuneration of Executive Managers 





Annual Remuneration 

3,855 

3,439 

_ 

_ 

Contributions to UIF, Medical and Pension Funds 

341 

313 

- 

- 


4,196 

3,752 

- 

- 

Durban Marine Theme Park 





Directors Fees 

855 

858 

_ 

_ 

Remuneration-CEO :S Thompson 

977 

1,421 

- 

- 

Remuneration-CEO:CN Khumalo 

140 

- 

- 

- 

Remuneration - CFO:P.VD.Berg 

1,332 

1,078 

- 

- 

Remuneration - C.O.O:P.N.Pillay 

1,229 

993 

- 

- 

Remuneration of Executives 

2,647 

2,333 

- 

- 


7,180 

6,683 

- 

- 

30. Remuneration of counciiiors 





Councillors 

94,721 

84,713 

94,721 

84,713 

Mayor 

1,163 

1,087 

1,163 

1,087 

Deputy Mayor 

939 

872 

939 

872 

Mayoral Commitee Members 

4,732 

4,701 

4,732 

4,701 

Speaker 

1,000 

940 

1,000 

940 

Councillors 

86,130 

76,356 

86,130 

76,356 

Councillors’ pension contribution 

757 

757 

757 

757 

Totai Counciiiors’ Remuneration 

94,721 

84,713 

94,721 

84,713 

in-kind benefits 





The Mayor, Deputy Mayor, Speaker and Mayoral Committee Members are full-time. Each is provided with an office and 

secretarial support at the cost of the Council. 





The Mayor and the Deputy Mayor each have the use of separate Council owned vehicles for official duties. 


The Mayor has three full-time bodyguards. The Deputy Mayor and speaker have two full-time bodyguards. 


The mayoral committee 

The municipality's council is made up of 205 Councillors. 

consists 

of 

12 

members. 


67 















416 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

Notes to the Annual Financial Statements 



Group 


Municipality 


Figures in Rand 

2014 

2013 

2014 2013 

30. Remuneration of councillors (continued) 





Mayor ( 1 ) 

Remuneration Allowances 

697 

665 

697 

665 

Travelling Allowance 

280 

267 

280 

267 

Cellphone Allowance 

41 

39 

41 

39 

Medical Aid 

41 

17 

41 

17 

Pension Fund 

104 

99 

104 

99 


1,163 

1,087 

1,163 

1,087 

Deputy Mayor ( 1 ) 

Remuneration Allowances 

557 

528 

557 

528 

Travelling Allowance 

224 

214 

224 

214 

Cellphone Allowance 

41 

27 

41 

27 

Medical Aid 

33 

23 

33 

23 

Pension Fund 

84 

80 

84 

80 


939 

872 

939 

872 

Speaker ( 1 ) 

Remuneration Allowances 

544 

535 

544 

535 

Travelling Allowance 

286 

276 

286 

276 

Cellphone Allowance 

29 

19 

29 

19 

Medical Aid 

61 

34 

61 

34 

Pension Fund 

80 

76 

80 

76 


1,000 

940 

1,000 

940 

Mayorai Committee Members ( 9 ) 

Remuneration Allowances 

2,972 

2,972 

2,972 

2,972 

Travelling Allowance 

1,150 

1,175 

1,150 

1,175 

Cellphone Allowance 

126 

114 

126 

114 

Medical Aid 

84 

60 

84 

60 

Pension Fund 

400 

380 

400 

380 


4,732 

4,701 

4,732 

4,701 

Counciiiors ( 193 ) 

Remuneration Allowances 

50,207 

43,522 

50,207 

43,522 

Constituency Allowances 

3,943 

3,802 

3,943 

3,802 

Travelling Allowance 

19,531 

18,726 

19,531 

18,726 

Cellphone Allowance 

3,116 

2,379 

3,116 

2,379 

Medical Aid 

3,847 

2,798 

3,847 

2,798 

Pension Fund 

5,486 

5,129 

5,486 

5,129 


86,130 

76,356 

86,130 

76,356 

Traditionai Leaders (18) 

Allowances 

757 

757 

757 

757 

31. Finance costs 





Non-current borrowings 

828,269 

908,838 

818,657 

899,940 

Consumer Deposits 

27,488 

32,572 

27,488 

32,572 

Other interest paid 

1,449 

671 

4,058 

3,182 


857,206 

942,081 

850,203 

935,694 


68 







417 



eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

Notes to the Annual Financial Statements 


33. Grants and subsidies paid 
Other subsidies 

Grant paid: Enhanced Extended Discount Benefit 

Grant Paid:Sporting Organisations 

Grant Paid: South African Association of Marine 

Biology Research 

Grant Paid:Playhouse Company 

Grant Paid:Natal Philharmonic Orchestra 

Grant Paid:Tourism Indaba 

Grant Paid:Trade Point Durban 

Grant Paid:Food Aid Program 

Grants Paid: Other 


34. Fair vaiue adjustments 





Fair value adjustment - Debtors 

(425) 

(1,098) 

(425) 

(1,098) 

Fair value adjustment - Creditors 

(9,289) 

8,845 

(9,289) 

8,845 

Fair value adjustment - Long term receivables 

- 

11,997 

- 

11,997 

Fair value adjustment - PPE 

196 

- 

66 

- 


3,496 

5,471 

3,496 

5,471 

46,125 

46,502 

46,125 

46,502 

56,469 

50,253 

56,469 

50,253 

3,803 

3,587 

3,803 

3,587 

7,816 

7,373 

7,816 

7,373 

15,658 

15,539 

15,658 

15,539 

1,058 

1,206 

1,058 

1,206 

12,203 

10,739 

12,203 

10,739 

19,505 

30,904 

22,372 

33,634 

166,133 

171,574 

169,000 

174,304 










418 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

Notes to the Annual Financial Statements 



Group 


Municipality 

Figures in Rand 

2014 

2013 

2014 

2013 

35. General expenses 





Advertising 

42,780 

19,375 

41,301 

17,053 

Auditors remuneration 

31,709 

28,051 

30,264 

26,578 

Bank charges 

6,728 

5,403 

5,129 

3,998 

Cleaning 

25,954 

18,802 

24,637 

17,364 

Commission paid 

26,551 

21,974 

26,202 

21,765 

Consulting and professional fees 

45,312 

40,140 

40,327 

32,548 

Delivery expenses 

3,505 

3,836 

3,505 

3,836 

Civic Entertainment 

1,023 

10,686 

1,015 

10,685 

Flire 

62,185 

76,835 

62,185 

76,835 

Insurance 

50 

(1,230) 

- 

- 

Community development and training 

11,948 

23,259 

11,948 

23,259 

Conferences and seminars 

2,849 

2,376 

2,849 

2,376 

IT expenses 

37,510 

38,183 

36,915 

37,703 

Lease rentals on operating lease 

51,446 

44,139 

50,060 

42,207 

Marketing 

53,546 

41,457 

38,697 

29,704 

Levies 

4,355 

9,208 

3,361 

7,917 

Magazines, books and periodicals 

9,162 

6,655 

9,114 

6,633 

Medical requisites 

21,492 

20,135 

21,492 

20,135 

Fuel and oil 

249,531 

209,887 

249,436 

209,788 

Postage and courier 

25,082 

25,841 

25,073 

25,836 

Printing and stationery 

36,826 

35,422 

35,596 

34,268 

Promotions 

62,905 

64,558 

62,905 

64,558 

Research costs 

11,210 

9,613 

11,210 

9,613 

Secretarial fees 

55,713 

51,085 

53,148 

48,950 

Subscriptions and membership fees 

15,444 

16,974 

15,234 

16,665 

Telephone and fax 

58,922 

62,530 

57,873 

61,400 

Transport and freight 

68,144 

62,023 

64,708 

59,245 

Training 

91,258 

80,184 

91,111 

80,049 

T ravel - local 

20,563 

35,740 

20,169 

35,243 

Refuse 

23,574 

35,641 

23,574 

29,356 

Title deed search fees 

778 

435 

778 

435 

Stock Adjustments 

6,090 

4,128 

5,667 

3,775 

Sewerage and waste disposal 

49,426 

29,605 

49,426 

29,605 

Refuse Bags 

71,718 

67,795 

71,718 

67,795 

Recycling 

9,313 

7,543 

9,313 

7,543 

Tourism development 

8,326 

6,259 

8,326 

6,259 

Other Sponsorships and Subsidies 

4,198 

5,175 

4,198 

5,175 

Stadium Operational Costs 

50,376 

88,541 

50,376 

88,541 

Urban Improvement Precincts 

21,478 

17,529 

21,478 

17,529 

Safety Equipment 

26,307 

25,725 

26,307 

25,725 

Contribution to the Provision for the Eradication of 

11,142 

582 

11,142 

582 

Alien Vegetation 





Special Events 

166,702 

169,053 

166,702 

169,053 

Venue Decorative expenses 

3,140 

2,735 

3,140 

2,735 

Other expenses 

328,506 

152,159 

281,307 

116,377 


1,914,777 

1,676,046 

1,828,916 

1,596,696 


70 







419 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

Notes to the Annual Financial Statements 




Group 

Municipality 

Figures in Rand 

2014 

2013 

2014 

2013 

36. 

Cash generated from operations 






Surplus 

Adjustments for: 

1,987,004 

2,536,242 

2,230,496 

2,510,875 


Depreciation: PPE 

1,680,789 

1,627,759 

1,613,564 

1,565,183 


Gain on disposal of PPE 

(17,739) 

(12,380) 

(17,666) 

(12,343) 


Loss on sale of PPE 

656 

5,686 

197 

4,940 


Depreciation: Investment Properties 

4,544 

4,532 

1,844 

1,756 


Share of Income from Joint Venture 

- 

- 

(15,083) 

(1,231) 


Fair value adjustments 

9,518 

(19,744) 

9,648 

(11,269) 


Amortisation: Intangible assets 

43,821 

42,027 

42,891 

41,314 


Contribution to provisions 

419,367 

87,211 

419,254 

86,602 


Impairment deficit 

11,815 

20,734 

11,815 

20,648 


Debt impairment 

1,618,726 

1,064,847 

1,617,118 

1,064,769 


Reversal of Impairment 

(314) 

(2,641) 

(314) 

(2,364) 


Movements in retirement benefit assets and 
liabilities 

(73,123) 

(35,398) 

(73,123) 

(35,398) 


Loss on impairment of investment in Municipal 
entity 

- 

- 

(211,651) 

45,640 


Donations received: PPE 

(706) 

(2,649) 

(706) 

(2,641) 


Changes in working capitai: 

Inventories 

(105,606) 

(43,272) 

(108,581) 

2,079 


Receivables from exchange transactions 

(1,344,444) 

(143,172) 

(1,339,548) 

142,595 


Consumer debtors 

(508,356) 

(923,511) 

(509,192) 

(1,039,433) 


Increase in deferred income 

(835) 

1,078 

- 

- 


Payables from exchange transactions 

860,174 

(592,104) 

860,150 

(733,438) 


VAT 

(71,735) 

(1,787) 

(72,453) 

(2,359) 


Unspent conditional grants and receipts 

288,982 

452,185 

288,982 

451,611 


Consumer deposits 

239,299 

150,280 

236,679 

147,022 



5,041,837 

4,215,923 

4,984,321 

4,244,558 

37. 

UTiLiSATiON OF LONG-TERM LiABiLITES RECONCiLiATION 





Long-term liabilities 

10,363,663 

10,002,011 

10,247,716 

9,886,788 


Used to finance property, plant and equipment - 
at cost 

(10,363,663) 

(10,002,011) 

(10,247,716) 

(9,886,788) 



- 

- 

- 

- 


71 









420 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


38. Commitments 

Commitments in respect of capitai expenditure 


Aiready contracted for but not provided for 


• Infrastructure 

4,661,143 

1,348,992 

4,661,143 

1,348,992 

• Community 

15,410 

46,427 

15,410 

46,427 

• Land and Buildings 

235,107 

59,092 

235,107 

59,092 

• Other 

1,806,567 

2,002,102 

1,793,476 

2,002,102 


6,718,227 

3,456,613 

6,705,136 

3,456,613 

Not yet contracted for and authorised by 
accounting officer 

• Infrastructure 

202,781 

554,718 

202,781 

554,718 

• Community 

64,804 

137,167 

64,804 

137,167 

• Land and Buildings 

149,110 

- 

149,110 

- 

• Other 

15,853 

49,000 

15,853 

49,000 


432,548 

740,885 

432,548 

740,885 


Included in the Other Capital Commitments figure for Housing is Housing Agency commitments amounting to R1 
687.6million (2013: R1 969.5million). 

Operating Leases-as Lessor (income) 

Minimum iease payments due 

- within one year 

- in second to fifth year inclusive 

78,653 55,550 


21,613 18,901 

57,040 36,649 


Durban Marine Theme Park Pty (Ltd) :The operating leases relate to rental contracts derived from Ushaka Village 
Walk. The lease agreements were entered into on various dates and will be operational for varying periods, the last 
expiring on 30 June 2020. For the purposes of calculating the lease commitments, options to renew the leases on expiry 
have been ignored. The rental escalation percentage varies from lease to lease, the average being approximately 6%. 

Municipality : Rental Income recognised from operating leases have not been accounted for on the straight-line basis over 
the lease terms for the following reasons: 

Approximately 50% of lease income is short term i.e. the lease is terminable at 1 to 3 months notice; 
Approximately 45% of long term lease income is based on turnover i.e. subjective and not fixed. 
Lease income is recognised as it accrues. The straight-lining of lease income is considered not to provide a fair reflection 
of income from leases. 

Operating leases - as lessee (expenditure) 


Minimum lease payments due 


- within one year 

- in second to fifth year inclusive 

- later than five years 

36,762 

67,202 

4,350 

27,109 

125,184 

9,532 

36,715 

67,198 

4,350 

27,109 

125,184 

9,532 


108,314 

161,825 

108,263 

161,825 

Operating Commitments 





Commitments Payable 

- within one year 

- within two to three years 

- after three years 

1,586,812 

693,137 

18,930 

1,643,921 

653,903 

17,858 

1,585,051 

693,137 

18,930 

1,643,921 

653,903 

17,858 


2,298,879 

2,315,682 

2,297,118 

2,315,682 


72 













421 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


38. Commitments (continued) 


Included above is Operating Commitments for Security Management. The Contract terminates on 31 October 2014. A 
contract has not been entered into for the period thereafter.The three year budget forecasts for Security Management 
costs is R429.6m, R485.1m and R527.9m respectively. 


73 








422 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 


Municipality 

Figures in Rand 

2014 

2013 

2014 2013 

39. Contingencies 

Contracted Disputes 

130,040 

57,929 

130,040 57,929 


Various departments within the municipality have price disputes with certain contractors. 

Self Insurance Reserve 79,067 51,429 79,067 51,429 


Various claims submitted to the Insurance department of the municipality are under dispute. The estimated liability of 
such claims is disclosed. 

Property Rate 3,949 217,115 3,949 217,115 


During the implementation of the Municipal Property Rates Act (MPRA), ratepayers were given the opportunity to object to 
the property valuations used in the computation of their property rates charge. These objections were investigated and 
resolved. Ratepayers that were dissatisfied with the results of the response had the right to lodge an appeal in terms of 
the MPRA. The appeals process has commenced. If the ratepayers are successful in their appeal, the above rates 
revenue recognised for the year will have to be reversed. 

Bank Guarantees 75,354 79,584 75,354 79,584 


These guarantee's are issued in favour of the following: 

- The Member(s), Jeena's Warehouse Close Corporation: R3.6m (Standard Bank) dated 19 May 1999; 

- S.A. Post Office: R76 000 (Standard Bank) dated 14 October 1997; 

- S.A. Post Office: R1.9m (Standard Bank) dated 6 August 1997; 

- ESKOM Holdings: R7 800 (Standard Bank) dated 1 November 2011; 

- Compensation Commissioner: R60.8m(Standard Bank) ; 

-South African Insurance Association: R9m. 


Legal Claims 


904,888 638,908 904,888 638,908 


Various claims submitted to the legal department of the municipality are in the process of being resolved. The estimated 
liability of such claims, should the claimant be successful, is disclosed. 

Legal disputes relate to: 

-Rates dispute: R4.6m; 

-Value of compensation in respect of expropriation of various properties R574.1m 
-Claims for damages - various: R296.2m 
-Various and other minor legal disputes R29.8m 

Municipal Entity-Durban Marine Theme Park 113,748 104,356 113,748 104,356 


A debenture held in Durban Marine Theme Park is convertible at the option of the holder into ordinary shares. Should the 
holder not exercise the option to convert, the debenture is redeemable at the option of either the issuer or the bearer. On 
redemption the debenture capital is repayable in 3 equal capital tranches during 2015, 2016 and 2017. The Municipality 
shall fund this obligation should the Municipal Entity be unable to meet it's obligations in terms of this repayment when it 
falls due. 


74 













423 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


40. Related parties 


Durban Marine Theme Park SOC Limited 
ICC Durban (Pty)Ltd 
Ethekwini Transport Authority 
River Horse Valley Joint Venture. Refer to note 1 5 
Durban Infrastructural Development Trust 
Trustees: 

M. E. Bayeni - Councillor 

N. N.Nyanisa - Councillor 
S.Z.Xulu - Councillor 

J. Balwanth - Council Official 
M.Tembe - Independent 3rd party 
P.N.Ngcobo - Independent 3rd party 

K. Ragunandan - Independent 3rd party 

Related party balances 


Loan accounts - Owing by related parties 

Durban Infrastructural Development Trust 156,583 108,183 

ICC Durban (Proprietary) Limited 226,590 226,590 


383,173 334,773 


Amounts included in Trade Receivable regarding related parties 

I.C.C. Durban (Proprietary) Limited 1,165 1,729 

Durban Marine Theme Park (Proprietary) Limited 2,254 2,322 


3,419 4,051 


Amounts included in Trade Payable regarding related parties 

I.C.C. Durban (Proprietary) Limited 7,164 3,222 

Ethekwini Transport Authority 55,534 54,047 

62,698 57,269 


Relationships 
Municipal Entities 


Joint ventures 

Councillor/Official with significant influence 


Consumer Deposit Paid 

I.C.C. Durban (Proprietary) Limited 1,409 976 

Other Related Party Asset 

I.C.C. Durban (Proprietary) Limited-Sponsorship in Advance 2,695 1,053 

Related party transactions 


Sales to related parties 

I.C.C. Durban (Proprietary) Limited: 


Electricity 

9,351 

8,906 

Water 

1,711 

1,312 

Refuse 

617 

511 

Property Rates 

Durban Marine Theme Park (Proprietary) Limited 

5,370 

4,290 

Electricity 

18,197 

16,807 

Water 

5,143 

3,117 

Waste 

936 

1,120 

Insurance 

1,421 

1,246 

Property Rates 

Riverhorse Valley Joint Venture 

4,234 

357 

Electricity and Water 

6 

5 

Income from Joint Venture 

15,083 

1,231 


75 











424 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

Notes to the Annual Financial Statements 

Group Municipality 

Figures in Rand 2014 2013 2014 2013 


40. Related parties (continued) 


Purchases from reiated parties 

I.C.C. Durban (Proprietary) Limited: 


General Expenses 

27,441 

32,965 

Durban Marine Theme Park (Proprietary) Limited 



General Expenses 

6,738 

3,977 

Ethekwini Transport Authority 



General Expenses 

2,610 

2,512 

Grant-in-Aid 

2,867 

2,730 


41 . Prior year adjustments / Changes in accounting poiicy 

The following adjustments all relate to corrections of prior-year errors with the exception of the adjustments relating to 
traffic fines. The accounting policy in respect of the recognition of traffic fine revenue was changed retrospectively in 
accordance with IGRAP 1. 


Consumer Debtors 


Balance previously reported 

- 

3,028,953 

- 

3,032,372 

Rates adjustments - prior to 2012/13 

- 

(66,602) 

- 

(66,602) 

Rates adjustments - 2012/13 

- 

(44,409) 

- 

(44,409) 

Flousing Rental adjustments - 2012/13 

- 

4,235 

- 

4,235 

Long-term Receivables: adjustment - 2012/13 

- 

2,251 

- 

2,251 


- 

2,924,428 

- 

2,927,847 


Creditors 

Balance previously reported 

Accrual for Membership Fees - prior to 2012/13 

Accrual for Membership Fees - 2012/13 

Accrual for SALGA Fees - 2012/13 

Councillors Allowance Accrual adjustment - 

2012/13 

Wages Accrual adjustment - prior to 2012/13 
Wages Accrual adjustment - 2012/13 
Conditions of Service Backpay accrual - prior to 
2012/13 

Conditions of Service Backpay accrual - 2012/13 

Grant-in-Aid accrual - 2012/13 

GRV Suspense adjustment - 2012/13 

PPE: Flousing adjustment 

PPE: WIP adjustment 

Elimination of Related Party: I.C.C. - 2012/13 


4,722,044 

- 

4,728,581 

422 

- 

422 

6 

- 

6 

2,740 

- 

2,740 

(3,825) 

- 

(3,825) 

(658) 

- 

(658) 

(35) 

- 

(35) 

93,172 

- 

93,172 

29,122 

_ 

29,122 

313 

- 

313 

695 

- 

695 

17,921 

- 

17,921 

2,876 

- 

2,876 

(1,053) 

- 

- 

4,863,740 

- 

4,871,330 


76 










425 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

Notes to the Annual Financial Statements 



Group 


Municipality 

Figures in Rand 

2014 

2013 

2014 

2013 

41 . Prior year adjustments / Changes in accounting poiicy (continued) 




Property, Piant and Equipment 

Balance previously reported 

- 

35,630,832 

- 

34,576,985 

Adjustments (various) - prior to 2012/13 

- 

3,165 

- 

3,165 

Adjustments: Loss on Disposal - 2012/13 

- 

(10,530) 

- 

(10,530) 

Adjustments: Reversal of Capitalised Interest - 

- 

(21,338) 

- 

(21,338) 

2012/13 

Adjustments: General Expenses 

_ 

(276) 

_ 

(276) 

Adjustments: Depreciation - 2012/13 

- 

(31,370) 

- 

(31,370) 

Debtors: Flousing WIP adjustment - 2012/13 

- 

143,326 

- 

143,326 

Creditors: WIP adjustment - 2012/13 

- 

2,876 

- 

2,876 

Creditors: Flousing adjustment - 2012/13 

- 

17,921 

- 

17,921 

Adjustments: Work-in-progress written back to 

- 

(89) 

- 

(89) 

operating expenses - 2012/13 

Adjustments: Work-in-progress written back to 

_ 

(11,788) 

_ 

(11,788) 

operating expenses - prior to 2012/13 

Intangibles adjustments - 2012/13 

_ 

(178) 

_ 

(178) 

I.C.C. - Depreciation adjustment - prior to 2012/13 

- 

(4) 

- 

- 

I.C.C. - Depreciation adjustment - 2012/13 

- 

(4,875) 

- 

- 

Ushaka - Depreciation adjustment - prior to 

- 

20,303 

- 

- 

2012/13 

Ushaka - Depreciation adjustment - 2012/13 

- 

2,916 

- 

- 


- 

35,740,891 

- 

34,668,704 

Investment Property 

Balance previously reported 

- 

328,527 

- 

- 

Ushaka - Depreciation adjustment - prior to 

- 

(1) 

- 

- 

2012/13 

Ushaka - Depreciation adjustment - 2012/13 

- 

(15) 

- 

- 


- 

328,511 

- 

- 

Non-current Liabilities 

Balance previously reported 

- 

9,044,012 

- 

- 

Ushaka - Debenture Interest adjustment - prior to 

- 

(1,705) 

- 

- 

2012/13 

Ushaka - Debenture Interest adjustment - 2012/13 

- 

(285) 

- 

- 


- 

9,042,022 

- 

- 

Intangible Assets 

Balance previously reported 

- 

690,507 

- 

688,861 

Amortisation adjustment - prior to 2012/13 

- 

849 

- 

849 

Amortisation adjustment - 2012/13 

- 

717 

- 

717 

PPE adjustments - 2012/13 

- 

178 

- 

178 

Ushaka - Amortisation adjustment - prior to 

- 

50 

- 

- 

2012/13 

Ushaka - Amortisation adjustment - 2012/13 

- 

54 

- 

- 


- 

692,355 

- 

690,605 


77 














426 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 


Municipality 

Figures in Rand 

2014 

2013 

2014 

2013 

41 . Prior year adjustments / Changes in accounting poiicy (continued) 

Accumuiated Surpius 

Balance previously reported 

27,825,530 


27,186,915 

Intangibles adjustments - prior to 2012/13 

- 

849 

- 

849 

Intangibles adjustments - 2012/13 

- 

717 

- 

717 

PPE adjustments - prior to 2012/13 

- 

3,165 

- 

3,165 

PPE adjustments: Loss on Disposal - 2012/13 

- 

(10,530) 

- 

(10,530) 

PPE adjustments: Reversal of Capitalised Interest 

- 

(21,338) 

- 

(21,338) 

-2012/13 

PPE adjustments: General Expenses 

_ 

(276) 

_ 

(276) 

PPE adjustments: Depreciation 

- 

(31,370) 

- 

(31,370) 

PPE adjustments: Work-in-progress written back 

- 

(89) 

- 

(89) 

to operating expenses - 2012/13 

PPE adjustments: Work-in-progress written back 

_ 

(11,788) 

_ 

(11,788) 

to operating expenses - prior to 2012/13 

Consumer Debtors: Rates adjustments - prior to 

. 

(66,602) 

_ 

(66,602) 

2012/13 

Consumer Debtors: Rates adjustments - 2012/13 

. 

(44,409) 

. 

(44,409) 

Consumer Debtors: Flousing Rental adjustments - 

- 

4,235 

- 

4,235 

2012/13 

Other Debtors: Traffic Fines adjustments - prior to 

. 

(143,847) 

. 

(143,847) 

2012/13 - (change in accounting policy) 

Other Debtors: Traffic Fines adjustments - 

. 

(129) 

. 

(129) 

2012/13 - (change in accounting policy) 

Other Debtors: Staff Cellphone Costs adjustment - 

. 

(1,486) 

. 

(1,486) 

prior to 2012/13 

Other Debtors: Temporary Staff adjustment - 

. 

569 

. 

569 

2012/13 

Other Debtors: Provision for Bad Debts 


(48,400) 


(48,400) 

adjustment - 2012/13 

Creditors: Accrual for Membership Fees - prior to 

. 

(422) 

. 

(422) 

2012/13 

Creditors: Accrual for Membership Fees - 2012/13 


(6) 


(6) 

Creditors: Accrual for SALGA Fees - 2012/13 

- 

(2,740) 

- 

(2,740) 

Creditors: Councillors Allowance Accrual 

- 

3,825 

- 

3,825 

adjustment - 2012/13 

Creditors: Wages Accrual adjustment - prior to 


658 


658 

2012/13 

Creditors: Wages Accrual adjustment - 2012/13 


35 


35 

Creditors: Conditions of Service Backpay accrual - 

- 

(93,172) 

- 

(93,172) 

prior to 2012/13 

Creditors: Conditions of Service Backpay accrual - 


(29,122) 

. 

(29,122) 

2012/13 

Creditors: Grant-in-Aid accrual - 2012/13 


(313) 


(313) 

Creditors: GRV Suspense adjustment - 2012/13 

- 

(695) 

- 

(695) 

Consumer Deposits: Interest adjustment - prior to 

- 

(62,595) 

- 

(62,595) 

2012/13 

Consumer Deposits: Interest adjustment - 

. 

(20,495) 

_ 

(20,495) 

2012/13 

VAT Debtors adjustment - prior to 2012/13 

. 

(3,396) 

_ 

(3,396) 

VAT Creditors adjustment - prior to 2012/13 

- 

(6,600) 

- 

(6,600) 

Unspent Conditional Grants written back to 

- 

574 

- 

574 

revenue - prior to 2012/13 

Long-term Receivables: Fair value adjustment - 


8,475 

. 

8,475 

2012/13 

I.C.C. - PPE Depreciation adjustment - prior to 

. 

(4) 

_ 

. 

2012/13 

I.C.C. - PPE Depreciation adjustment - 2012/13 

- 

(4,875) 

- 

- 


78 







427 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 


Municipality 

Figures in Rand 

2014 

2013 

2014 

2013 

41 . Prior year adjustments / Changes in accounting poiicy (continued) 




Ushaka - Investment Property Depreciation 
adjustment - prior to 2012/13 

" 

(1) 

" 

" 

Ushaka - Investment Property Depreciation 
adjustment - 2012/13 

" 

(15) 

" 

" 

Ushaka - Intangibles Amortisation adjustment - 
prior to 2012/13 

" 

50 

" 

" 

Ushaka - Intangibles Amortisation adjustment - 
2012/13 

- 

54 

- 

- 

Ushaka - PPE Depreciation adjustment - prior to 

2012/13 

- 

20,303 

- 

- 

Ushaka - PPE Depreciation adjustment - 2012/13 

- 

2,916 

- 

- 

Ushaka - Debenture Interest adjustment - prior to 

2012/13 

- 

1,705 

- 

- 

Ushaka - Debenture Interest adjustment - 2012/13 

- 

285 

- 

- 


- 

27,269,230 

- 

26,610,197 

Consumer Deposits 

Balance previously reported 


1,211,766 


1,191,422 

Interest adjustment - prior to 2012/13 

- 

62,595 

- 

62,595 

Interest adjustment - 2012/13 

- 

20,495 

- 

20,495 

Elimination of Related Party: I.C.C. - 2012/13 

- 

(976) 

- 

- 


- 

1,293,880 

- 

1,274,512 

Long-term Receivables 

Balance previously reported 


147,742 


147,742 

Consumer Debtors: adjustment - 2012/13 

- 

(2,251) 

- 

(2,251) 

Fair value adjustment - 2012/13 

- 

8,475 

- 

8,475 


- 

153,966 

- 

153,966 

Other Debtors 

Balance previously reported 


2,573,433 


2,558,846 

Traffic Fines adjustments - prior to 2012/13 - 

- 

(143,847) 

- 

(143,847) 

(change in accounting policy) 

Traffic Fines adjustments - 2012/13 - (change in 
accounting policy) 

- 

(129) 

- 

(129) 

Staff Cellphone Costs adjustment - prior to 

2012/13 

- 

(1,486) 

- 

(1,486) 

Temporary Staff adjustment - 2012/13 

- 

569 

- 

569 

PPE: Flousing WIP adjustment - 2012/13 

- 

(143,326) 

- 

(143,326) 

Provision for Bad Debts adjustment - 2012/13 

- 

(48,400) 

- 

(48,400) 

Elimination of Related Party: I.C.C. (Consumer 

Deposits and Creditors) - 2012/13 

■ 

(2,029) 

■ 

■ 


- 

2,234,785 

- 

2,222,227 

VAT receivable 

Balance previously reported 


32,725 


33,308 

Debtors adjustment - prior to 2012/13 

- 

(3,396) 

- 

(3,396) 

Creditors adjustment - prior to 2012/13 

- 

(6,600) 

- 

(6,600) 


- 

22,729 

- 

23,312 


79 
















428 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

Notes to the Annual Financial Statements 




Group 


Municipality 

Figures in Rand 

2014 

2013 

2014 

2013 

41. 

Prior year adjustments / Changes in accounting poiicy (continued) 





Unspent Conditionai Grants 

Balance previously reported 


1,039,839 


1,039,839 


Grants written back to revenue - prior to 2012/13 

- 

(574) 

- 

(574) 



- 

1,039,265 

- 

1,039,265 


Retirement Benefit Obiigation - Current Liabiiities 

Balance previously reported 


259,944 


259,944 


Re-classification to Non-current Liabilities - 2012/13 

- 

(97,094) 

- 

(97,094) 



- 

162,850 

- 

162,850 


Retirement Benefit Obiigation - Non-current 

Liabiiities 

Balance previously reported 


2,628,325 


2,628,325 


Re-classification from Current Liabilities - 2012/13 

- 

97,094 

- 

97,094 



- 

2,725,419 

- 

2,725,419 

42. 

Additionai disciosure in terms of Municipai Finance Management Act 





Contributions to organised iocai government 






Current year subscription / fee 

10,400 

9,800 

10,400 

9,800 


Amount paid - current year 

(10,400) 

(9,800) 

(10,400) 

(9,800) 



- 

- 

- 

- 


Audit fees 






Opening balance 

30 

104 

_ 

_ 


Current year audit fee 

19,487 

15,606 

18,074 

14,132 


Previous year audit fee 

14,132 

12,357 

14,132 

12,357 


Amount paid - current year 

(19,487) 

(15,680) 

(18,074) 

(14,132) 


Amount paid - previous years 

(14,162) 

(12,357) 

(14,132) 

(12,357) 



- 

30 

- 

- 


PAYE and UIF 






Opening balance 

_ 

368 

_ 

_ 


Current year payroll deductions 

871,797 

777,107 

871,797 

772,051 


Amount paid - current year 

(871,797) 

(777,107) 

(871,797) 

(772,051) 


Amount paid - previous years 

- 

(368) 

- 

- 



- 

- 

- 

- 


80 














429 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


42. Additional disclosure in terms of Municipal Finance Management Act (continued) 
Pension and Medical Aid Deductions 


Opening balance 

821 

700 

- 

- 

Current year subscription / fee 

1,699,686 

1,510,728 

1,684,300 

1,496,472 

Amount paid - current year: Defined Benefit 

Pension Fund 

(273,213) 

(281,824) 

(273,213) 

(281,824) 

Amount paid - current year: Defined Contribution 

Pension Fund 

(768,217) 

(650,088) 

(759,002) 

(641,294) 

Amount paid - current year: Medical Aid 

(657,354) 

(577,995) 

(652,085) 

(573,354) 

Amount paid - previous years: Defined 

Contribution Pension Fund 

(539) 

(475) 

" 

" 

Amount paid - previous years: Medical Aid 

(282) 

(225) 

- 

- 



902 

821 

- 

- 

VAT 





VAT received (paid) for the year 

366,349 

265,363 

366,349 

265,363 

VAT payable 

(10,803) 

(26,151) 

(10,803) 

(13,927) 


355,546 

239,212 

355,546 

251,436 


VAT output payables and VAT input receivables are shown in note 5. 

All VAT returns have been submitted by the due date throughout the year. 


81 











430 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 


Municipality 

Figures in Rand 

2014 2013 


2014 

2013 

42. Additional disclosure in terms of Municipal Finance Management Act (continued) 




Councillors' arrear consumer accounts 





The following Councillors had arrear accounts outstanding for more than 90 days during the financial year ended June 

30, 2014: 





June 30, 2014 



Amount 

outstanding 

Month 




(Rands) 


Councillor Abegail Nomthandazo Shabalala 

- 

- 

6,497 

Jun-14 

Councillor Barbar Fortein 

- 

- 

69 

Apr- 14 

Councillor Bhekisisa Ngwane 

- 

- 

5,792 

Jun-14 

Councillor Conrad DIamini 

- 

- 

3,232 

Feb- 14 

Councillor Danova Pillay 

- 

- 

495 

Jun-14 

Councillor Dennis Shozi 

- 

- 

1,895 

Jun-14 

Councillor Divas Mncwabe 

- 

- 

26 

May-14 

Councillor GS Ngcobo 

- 

- 

548 

Aug-13 

Councillor Flendrick Cele 

- 

- 

12,692 

Jun-14 

Councillor Flubane Maphumulo 

- 

- 

682 

Jun-14 

Councillor James Nxumalo 

- 

- 

3,154 

Apr- 14 

Councillor Japhet DIamini 

- 

- 

1,679 

May-14 

Councillor Joice Cele 

- 

- 

219 

Jun-14 

Councillor Mary Jane Ntshangase 

- 

- 

29 

Sep-13 

Councillor Mduduzi Bayeni 

- 

- 

511 

Jun-14 

Councillor Mduduzi Ngcobo 

- 

- 

622 

Jun-14 

Councillor Mduduzi Nkosi 

- 

- 

4,743 

May-13 

Councillor Melta Mthembu 

- 

- 

565 

Feb- 14 

Councillor Mfanufikile Cele 

- 

- 

293 

Dec- 13 

Councillor Mhlabunzima Bhengu 

- 

- 

715 

Dec- 13 

Councillor MM Ngiba 

- 

- 

3,978 

Oct- 13 

Councillor MK Ndzimbomvu 

- 

- 

31 

Sep-13 

Councillor Muzimenyanga DIadIa 

- 

- 

141 

Jun-14 

Councillor Nelisiwe Nyanisa 

- 

- 

7,009 

Jun-14 

Councillor Ngwazi 

- 

- 

20 

Sep-13 

Councillor Nokuthula Makhanya(Sibiya) 

- 

- 

22 

Nov- 13 

Councillor Nompumelelo Mabaso 

- 

- 

14,106 

Jun-14 

Councillor Octavia Mthembu 

- 

- 

14,865 

Jun-14 

Councillor P Padayachee 

- 

- 

152 

Jun-14 

Councillor Pragalathan Naidoo 

- 

- 

5,352 

Jun-14 

Councillor Professor Sibiya 

- 

- 

362 

Jun-14 

Councillor Sibusiso Gumede 

- 

- 

1,050 

Feb- 14 

Councillor Stanley Buthelezi 

- 

- 

1,853 

Jun-14 

Councillor Themba Ncane 

- 

- 

43 

May-14 

Councillor Theresa Nzuza 

- 

- 

2,524 

Nov- 13 

Councillor Valelisa Quio 

- 

- 

266 

Feb- 14 

Councillor Vusi Gebashe 

- 

- 

63 

May-14 

Councillor ZRT Gumede 

- 

- 

601 

Dec- 13 

Councillor ZS Ndzoyiya 

- 

- 

879 

Jun-14 


- 

- 

97,775 


June 30, 2013 



Amount 

outstanding 

Month 




(Rands) 


Councillor Abegail Nomthandazo Shabalala 

- 

- 

927 

Feb- 13 

Councillor BA Chili 

- 

- 

375 

Jan-13 

Councillor Bhekisisa Ngwane 

- 

- 

1,111 

Aug-12 

Councillor Biyela 

- 

- 

29 

Mar-13 

Councillor Conrad DIamini 

- 

- 

68,601 

Sep-12 


82 









431 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

Notes to the Annual Financial Statements 

Group Municipality 

Figures in Rand 2014 2013 2014 2013 


42. Additional disclosure in terms of Municipal Finance Management Act (continued) 


Counci 

lor Dennis Shozi 

- 

- 

4,800 

Aug-12 

Counci 

lor EF Shabalala 

- 

- 

55 

Jul-12 

Counci 

lor Fanie Moyo 

- 

- 

4,891 

Jul-12 

Counci 

lor GS Ngcobo 

- 

- 

7,079 

Aug-12 

Counci 

lor Flendrick Cele 

- 

- 

3,450 

Aug-12 

Counci 

lor Fllongwa 

- 

- 

63 

Mar-13 

Counci 

lor Flubane Maphumulo 

- 

- 

1,380 

Jul-12 

Counci 

lor Jonathan Naidoo 

- 

- 

38,415 

Dec- 12 

Counci 

lor Mak DIadIa 

- 

- 

226 

Sep-12 

Counci 

lor Mary Jane Ntshangase 

- 

- 

237 

Sep-12 

Counci 

lor Mduduzi Bayeni 

- 

- 

166 

Ju-12 

Counci 

or Mduduzi Gumede 

- 

- 

442 

Sep-12 

Counci 

lor ME Bayeni 

- 

- 

437 

Apr- 13 

Counci 

lor Melta Mthembu 

- 

- 

1,518 

Feb- 13 

Counci 

lor Mhlabunzima Bhengu 

- 

- 

1,414 

Jul-12 

Counci 

lor SJ Nhlapho 

- 

- 

549 

Mar-13 

Counci 

lor PM Sibiya 

- 

- 

480 

Feb- 13 

Counci 

lor MS Cele 

- 

- 

4,003 

Jul-13 

Counci 

lor NE Mthembu 

- 

- 

1,883 

Oct- 12 

Counci 

lor Nelisiwe Nyanisa 

- 

- 

1,680 

Sep-12 

Counci 

lor Ngwazi 

- 

- 

81 

Aug-12 

Counci 

lor Obed Ngcobo 

- 

- 

10,795 

Aug-12 

Counci 

lor P Padayachee 

- 

- 

358 

Sep-12 

Counci 

lor Peter Davis 

- 

- 

4,552 

Jul-12 

Counci 

lor PP Hlengwa 

- 

- 

982 

Sep-12 

Counci 

lor Pragalathan Naidoo 

- 

- 

43,271 

Jun-13 

Counci 

lor S Zungu 

- 

- 

183 

Dec- 12 

Counci 

lor Simingayesonke Mcoyi 

- 

- 

1,230 

Jul-12 

Counci 

lor SS Buthelezi 

- 

- 

142 

Jun-13 

Counci 

lor Themba Ncane 

- 

- 

37,699 

Ju-12 

Counci 

lor Theresa Nzuza 

- 

- 

22,237 

Aug-12 

Counci 

lor Vulo Quio 

- 

- 

339 

Aug-12 

Counci 

lor Vusi Gebashe 

- 

- 

3,420 

Jul-12 

Counci 

lor ZRT Gumede 

- 

- 

1,207 

Jan-13 

Counci 

lor ZS Ndzoyiya 

- 

- 

4,423 

Jan-13 

Counci 

lor NJ Makhanya(Sibiya) 

- 

- 

151 

Apr- 13 

Counci 

lor NF Shabalala 

- 

- 

2,862 

Apr- 13 

Counci 

lor MK Ndzimbomvu 

- 

- 

20 

May-13 

Counci 

lor Marcus Zungu 

- 

- 

23,487 

Mar-13 

Counci 

lor JN Cele 

- 

- 

205 

Feb- 13 

Counci 

lor William Mapena 

- 

- 

31 

Mar- 13 

Counci 

lor Bongani Mpungose 

- 

- 

194 

Feb- 13 

Counci 

lor B DIamini 

- 

- 

6,895 

Mar-13 

Counci 

lor Hleziphi Goge 

- 

- 

100 

Jul-12 

Counci 

lor Dean Macpherson 

- 

- 

449 

Sep-12 



- 

- 

309,524 



43. Comparative figures 

Certain comparative figures have been restated (refer note 41 for details). 


83 






432 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


44. Deviation from suppiy chain management reguiations 

During the year there were contracts awarded of more than R2 000 to various employees of council or people who are 
spouse's, children or parents of people in the service of the municipality amounting to R14.2million (2013: R36.3 million). 
The full details of these awards can be found in note 55. 

Contract awards made in terms of Section 36(1 )(a) (Regulation 36 of SCMR) of the Supply Chain Management Policy 
amounted to R 1.673 billion (2013: R1.896 billion). Included in this amount is an award of R264m through Section 36(1 )(b) 
to a petroleum company. In the previous financial year's the payments to this company were condoned through our 
processes and reported to National Treasury. 

Details of the awards are summarised in the table below: 

Durban Marine Theme Park: Contract awards made in terms of Section 36(1 )(a) (Regulation 36 of SCMR) of the Supply 
Chain Management Policy amounted to R2.046 million. 

ICC (Proprietary) Limited: Contract awards made in terms of Section 36(1 )(a) (Regulation 36 of SCMR) of the Supply 
Chain Management Policy amounted to R752 thousand. 


Categories per SCM reguiations 

SCM 

Number of 

%ofTotai Vaiue (ROOD'S) 

% of Rand 


Reguiation 

Reference 

cases 



Vaiue 

In an emergency 

36(1)(a)(i) 

23 

2.65 % 

124,134 

7.42 % 

If such goods or services are 
produced or available from a single 
provider only 

36(1)(a)(ii) 

40 

4.60 % 

206,800 

12.35 % 

For the acquisition of special works of 
art or historical objects where 
specifications are difficult to compile 

36(1)(a)(iii) 

3 

0.34 % 

630 

0.04 % 

Acquisition of animals for zoos 

36(1)(a)(iv) 

1 

0.12 % 

26 

0.01 % 

In any other exceptional case where it 
is impractical or impossible to follow 
the official procurement processes 

36(1)(a)(v) 

789 

90.79 % 

835,064 

49.91 % 

Minor deviation from the standard 
process 

36(1 )(b) 

13 

1.50 % 

506,547 

30.27 % 



869 


1,673,201 



Included in the amount of R835m above, is an award amounting to R296m through Section 36(1)(a)(v) as disclosed as 
irregular expenditure in note 46. The award has been deemed as irregular. 


84 









433 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


45. Material losses 
Water: 

The Non-Revenue Water (NRW) Branch is responsible for monitoring the NRW situation at eThekwini Water and 
Sanitation (EWS) and reporting thereon, providing strategic direction for the Unit to reduce losses as well as implementing 
a number of programmes to reduce losses on a wide scale. The primary objective of the NRW reduction activities is to 
reduce the NRW levels to a targeted and sustained value of 25% by volume (420 litres/connection/day total water losses) 
by June 2019. 

Water losses of 131 021 634 kl (2012/2013 : 119 966 557 kl) occurred during the year under review, which resulted in 
revenue losses to the municipality. The estimated water losses amounting to R602,6m (2012/2013: R513,0m) were due 
mainly to illegal connections and deteriorating infrastructure. The non-revenue water volume increased from 37.3% in 
2012/13 to 39.2% in 2013/14. Based on a Water Research Commission Report TT512/12, (using 2010 data) the current 
South African NRW average is 36.8% whilst the African average is 38.0%. 

An estimated deemed authorised consumption of 31 369kl/day is being consumed in the informal settlements in the 
eThekwini Municipality and a programme is underway to meter and monitor this consumption. The municipality is 
compensated for this water consumption via the Equitable Share. If this volume had been included in the 2013/14 
financial year, the reported NRW% would be 35,9% and the water losses would be 1 19 571 949 kl. 

In terms of MFMA circular 71 the norm for water losses is between 15% and 30%. The Municipality's losses are 9.4% 
above this norm and this equates to approximately R141.3m. Flowever, if the estimated consumption by informal 
settlements as indicated above is taken into account, the losses in excess of the norm would reduce to 5.9% which 
equates to approximately R89.8m. 

In line with the current NRW Business Plan, EWS is implementing a number of water loss interventions, the highlights of 
which for 2013/14 are as follows: 

1. During the year 64 Pressure Reducing Valves were installed and 120 installations are planned to be done in the 
2014/15 year. 

2. The Leak Detection and Repair Strategy with a total of 16 Category B plumbers in formal and informal areas has 
proved extremely successful and a total of 15567 leaks were repaired from the 6716 km of reticulation that were surveyed 
for leaks. 

3. 4242 connections were regularized and registered in COINS from the sweeps being conducted Metro-wide in old 
eThekwini Flousing projects. 

4. In terms of the programme for meter replacement for domestic consumers which are more than 20 years old a total of 
5978 out of a target of 9000 has been achieved. This programme was hampered by delays in the meter supply contract 
as well as plumbing resources. 955 ICI (Industrial, Commercial and Institutional) consumer meters older than 20 years 
were replaced. In January 2014, a decision was taken to meter all the unmetered sprinkler and fire connections and a 
contract to commence with this work has recently commenced. 

5. The total number of registered connections increased by 10421 (2,2%) and the consumer sales marginally increased 
by 906 kl/day. The stagnant sales volume is highlighted as a major concern for the Unit and several programmes are 
being conducted to address this. There are now a total of 488 270 registered connections in eThekwini. 

The success of the NRW programme has been hampered in the 2013/14 financial year due to the non-availability of 
materials and resources but has started to regain the momentum lost in the previous years. System attrition is estimated 
to be 2.1% and this is masking the results of the positive achievements. The compliance of the consumers as well as the 
large population migration to peri-urban areas is also highlighted as a concern. A significant increase in budget and 
planned work will be required as per the NRW 2013 Business Plan in order to achieve the stated target of 25% NRW by 
volume by June 2019. 


85 







434 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


Electricity: 

Estimated Electricity losses 687 009 986 kWh (2013: 667,412,169 kWh) occurred during the year under review which 
resulted in revenue losses to the municipality. These estimated electricity losses amounted to R 424m 
(2013: R 396m). 

The norm for electricity losses ranges from 5.6% to 12%. The loss incurred by the municipality is 6.11% (2013: 5.85%) 
and is due to a combination of transmission/distribution losses and losses due to illegal connections. In comparison to 
other Metro's, eThekwini Municipality maintains its losses at a lower end of the norm. 

Transmission losses are inevitable, however, the following interventions have been implemented: 

1. Optimal Network Configuration: 

The Planning and Design engineers ensure that all network additions are implemented with correct equipment ratings and 
configuration so as to minimize losses. 

2. Effective Maintenance on Network: 

The unit has adopted a comprehensive maintenance schedule to promote the reliability of the network as well as enhance 
the efficiency of the network. 

3. Efficient Network Loading: 

Power flow into the network is carefully monitored on a 24 hour basis and the correct, most efficient electrical loading 
configuration is adopted. 

Illegal electricity connections are a major contributing factor to non-technical losses. The following interventions have 
been implemented to curb illegal connections: 

1 . Area Sweeps: 

The Revenue protection teams continuously investigate high theft area's to remove all illegal connections. 

2. Employment of security Intelligence Teams: 

Private investigators are deployed to site to try and gather evidence to apprehend suspects. 

3. Installation of anti-theft technologies at substations: 

The employment of this technology deters intruders from entering into substations and carrying out illegal connections. 

4. Theft Hotline: 

A 24 hour hotline has been set up to report acts of theft and illegal connections - once a suspicious activity is reported, 
security will be dispatched immediately to the affected site. 

Bad Debts written off: 

Debt of R533m (2013: 1 85m) was written off during the year. The write-off is in respect of irrecoverable debts which relate 
to rates, services, housing and sundry debts. The Municipality took steps to write-off this debt which is considered 
irrecoverable so that efforts can be focused on debt that can still be recovered. About 51% of the write-off relates to 
Water Debt Relief Programme where customers pay for the current consumption and the debt being written off over a 
period of time. Prescribed Debt relating to acknowledgement of debt agreements for water was written off. 


86 







435 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 


Municipality 

Figures in Rand 

2014 

2013 

2014 

2013 

46. Unauthorised, irregular, fruitless and wasteful expenditure disallowed 




Cases reported during the 2013/14 year are 
included below: 





The irregular expenditure relating to Flousing was 
awarded to contractors / consultants in 
accordance with Council's delegated authority to 
the Flead of Housing dated 1 1/1 1/1997, to enter 
into contracts for housing development in terms of 

National Housing Programs. This expenditure is 
deemed to be irregular as the expenditure was not 
reported to the Accounting Officer for disclosure 


9,669 


9,669 

purposes. 

Parks, Recreation & Culture: Noncompliance with 

S.C.M. 

- 

18,309 

- 

18,309 

Non-compliance with S.C.M. - various: This 
expenditure is deemed to be irregular due to 

Public Tender Process not being adhered to, 
preference points not being applied, variation 
orders not being approved by the relevant 
committee's, tax clearance certificates not being 
received, 3 quotations not being obtained and 
adverts not being adequately advertised. 

331,841 

288,207 

331,841 

288,207 

Awards made to entities whose directors / 

399 

2,675 

399 

2,675 

members / principal shareholders / stakeholders 
were in the service of eThekwini municipality 

Awards made to entities whose directors / 

389 


389 


members / principal shareholders / stakeholders 
were close family members of persons in the 
service of eThekwini municipality 

Awards made entities whose directors / members 

2,149 

1,006 

2,149 

1,006 

/ principal shareholders / stakeholders were in the 
service of other State institutions 

Awards made to entities whose directors / 


3,190 


3,190 

members / principal shareholders / stakeholders 
were in the service of eThekwini municipality as 

Councillors 


1,204 


1,204 

Misappropriation and Embezzlement of Council 

Funds 

- 

1,010 

- 

1,010 

Wasteful Expenditure: Misuse of Council Funds 

- 

1 

- 

1 

I.C.C. Durban (Pty) Ltd. - Non-compliance with 

Supply Chain Management policy 

24,796 

“ 

“ 

“ 

Included in the amount of R331.8m for irregular expenditure above, is an expenditure amounting to R296m that was 

incurred on a contract procured through Section 36(1)(a)(v) 

as disclosed in 

note 44. The award has been deemed as 

irregular. 





Investigations are still in progress regarding 303 other cases (2013: 125). 




Irreguiar expenditure 

Reconciiiation of irreguiar expenditure 

Opening balance 

7,162 

947,223 

7,162 

947,223 

Irregular expenditure current year 

359,574 

325,271 

334,778 

325,271 

Recoveries / Condonements 

(50,050) 

(1,265,332) 

(25,254) 

(1,265,332) 

Irreguiar expenditure awaiting condonement 

316,686 

7,162 

316,686 

7,162 


A number of interventions have been introduced to improve monitoring controls in Supply Chain Management and the bid 
process prior to the awarding of contracts to service providers. 


87 










436 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 

2013 

2014 

2013 

47. Bank balances 





Account number - Bank - Account 

Cash Book 

Bank 

Cash Book 

Bank 


Balance 

Statement 

Balance 

Statement 



balance 


balance 

Description 

June 30, 2014 

June 30, 2014 

June 30, 2013 

June 30, 2013 

050134353 - Standard Bank - Main Expenditure 

78,197 

(96,276) 

76,022 

(62,973) 

050133535 - Standard Bank - Main Expenditure EFT 

193,655 

(619,466) 

- 

(854,810) 

050133969 - Standard Bank - Direct Deposits 

Account 

15,717 

255,422 

14,510 

227,991 

050134116 - Standard Bank - Electronic Deposits 
Account 

50,817 

2,136,261 

50,946 

720,104 

050134132 - Standard Bank - Cashiers Deposit 

Account 

(5,652) 

14,603 

(4,170) 

217,463 

050134140 - Standard Bank - Government Deposit 
Account 

10,062 

135,924 

5,727 

44,985 

050134655 - Standard Bank - Electricity Income 

Account 

1,563 

8,630 

1,757 

6,882 

050134671 - Standard Bank - Electricity Prepaid 

Vendor Deposits 

2,015 

78,865 

6,826 

73,785 

050134469 - Standard Bank - BARS E-Filing Account 

- 

35,266 

- 

1,500 

050134442 - Standard Bank - Dishonoured Cheques 
Account 

(71) 

(313) 

(33) 

605 

050073117 - Standard Bank - Main Expenditure Bank 

- 

(4,804) 

- 

(5,092) 

050133993 - Standard Bank - Direct Debit Collections 
Account 

- 

75,232 

- 

71,910 

050134019 - Standard Bank - Transwitch Account 

- 

95,911 

(4,706) 

82,048 

050134094 - Standard Bank - Agents Deposit 

Account 

15,055 

230,732 

6,226 

112,974 

050134213 - Standard Bank - Metro Police 

- 

5,156 

- 

5,314 

Deposit Account 

050134183 - Standard Bank - Metro Police 


(1) 


763 

Transwitch Deposit Account 

050134248 - Standard Bank - Parks, Recreation 
and Culture Deposit Acc. 

55 

1,255 

1,044 

2,530 

050134264 - Standard Bank - City Engineers 

Account 

176 

5,220 

1,735 

3,920 

050134272 - Standard Bank - Durban Tourism 

- 

128 

58 

427 

Deposit Account 

050134531 - Standard Bank - Central Foreign 

Rand Account 

- 

(116) 

(269,800) 

5,948 

050134574 - Standard Bank - Water Foreign 

Rand Account 

- 

(13) 

- 

(70) 

050134698 - Standard Bank - Electricity Foreign 

Rand Account 

- 

- 

(923) 

(923) 

050134299 - Standard Bank - Virginia Airport 

Account 

- 

764 

- 

2,320 

050134329 - Standard Bank - Department of 

50 

25,125 

- 

270,703 

Flousing Account 

050134450 - Standard Bank - Sundry PAYE 

Account 

367 

367 

291 

291 

050134507 - Standard Bank - Cash Payments 

Account 

6 

(5,319) 

2 

(188) 

050134426 - Standard Bank - Refunds 

8,747 

2,767 

- 

1,529 

Expenditure Account 

050134582 - Standard Bank - Water and 

242 

(1,378) 

1,095 

(219) 

Sanitation Services Expenditure Account 

050133616 - Standard Bank - Water and 

Sanitation Services EFT Account 

(199,891) 

(487,550) 

78 

(293,311) 


88 







437 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 


Municipality 

Figures in Rand 

2014 

2013 

2014 

2013 

47. Bank balances (continued) 

050134701 - Standard Bank - Electricity 

(1,722) 

(1,724) 

(2,996) 

(2,998) 

Expenditure Account 

050133608 - Standard Bank - Electricity EFT 

(639,653) 

(639,653) 

(614,402) 

(614,402) 

050133586 - Standard Bank - Salaries Account 

65,909 

(369,388) 

60,881 

(351,200) 

050134590 - Standard Bank - Durban Fresh 

16,154 

16,015 

17,379 

17,352 

Produce Market Account 

050134515 - Standard Bank - CIFAL Durban 

230 

230 

230 

230 

Account 

050134493 - Standard Bank - General Bank 

502,346 

(862,018) 

302,771 

(108,010) 

Account 

050041827 - Standard Bank - E-Ticketing 


(559) 


296 

Account 

050134434 - Standard Bank - Bank Charges 


(505) 


(186) 

Account 

050134337 - Standard Bank - Moses Mabhida 

1 

10,474 

158,660 

158,660 

Stadium Deposit Account 

050138987 - Standard Bank - Pay at Deposit 

(10,569) 

79,849 

(7,679) 

70,252 

Account 

050137220 - Standard Bank - Consolidated 



267,925 

267,925 

Investment Fund (EFT) 

050154540 - Standard Bank - Syntell Deposit 

(3) 

81 

(1) 

36 

Account 

050189816 - Standard Bank - Reforestation Project 

7,067 

7,311 

807 

900 

Account 

050138782-Standard Bank-Moses Mabhida 

9,198 

(12,540) 



Expenditure Account 






Totais: ETHEKWiNi MUNiCiPALITY 

Bank baiances 

977,630 

3,221,588 

974,970 

2,369,643 

Bank overdraft 

(857,562) 

(3,101,623) 

(904,710) 

(2,294,382) 


The following accounts had nil balances at year end: 

050133608 - Standard Bank - Electricity expenditure; 050041924 - Standard Bank - Vehicle Auctions 
Account; 050134345 - Standard Bank - 2010 SoccerGrant Account; 050137190 - Standard Bank - GIF Account; 
050134159 - Standard Bank - Mayors Relief Account; 050133624 - Standard Bank - Durban Fresh Produce Market EFT 
Account. 


89 










438 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

Notes to the Annual Financial Statements 



Group 


Municipality 

Figures in Rand 

2014 

2013 

2014 

2013 

47. Bank baiances (continued) 





Durban Marine Theme Park (Proprietary) Limited: 

50003530849 Investec Bank- Fixed Deposit 

4,570 

4,570 



50003530849 Investec Bank- Fixed Deposit 

3,844 

3,844 

- 

- 

50006958840-lnvestec Smart Rate Notice 90/0 

4,746 

4,746 

23,088 

23,088 

50005636079 - Investec Bank - Smartrate Account 

21,224 

21,224 

15,624 

15,624 

100027X021905914 - RMB - Account 

- 

- 

38 

38 

050139452 - Standard Bank - Retail Bank Account 

122 

122 

63 

63 

050139495 - Standard Bank - Schools Account 

7 

7 

2 

2 

050139509 - Standard Bank - Main Deposit Account 

1,043 

1,043 

915 

915 

050215280-Standard Bank salary clearing account 

I.C.C. Durban (Proprietary) Limited: 

1,717 

1,717 

- 

- 

50226959 - Standard Bank 

1,467 

1,467 

44 

44 

50881201632- FNB 

2,219 

2,219 

126 

126 

50018949 - Standard Bank 

- 

- 

1 

1 

50138162 - Standard Bank 

200 

200 

320 

320 

50138197 - Standard Bank 

1,385 

1,385 

601 

601 

Effingham Deveiopment Joint Venture: 

Bank Balances 

28,176 

- 

44,510 

- 

Totals: MUNICIPAL ENTITIES 

Bank balances 

70,720 

42,544 

85,332 

40,822 


Totals: GROUP 

Bank balances 

1,048,350 

3,264,132 

1,060,302 

2,410,465 

Bank overdraft 

(857,562) 

(3,101,623) 

(904,710) 

(2,294,382) 


48. Taxation 

No provision has been made for the taxation of municipal entities as they have an assessed loss of R332 327 990 (2013: 
R303 372 1 52 ), which is available for set-off against future taxable income. No deferred tax asset has been raised. 

49. FiNANCiAL iNSTRUMENTS 

Exposure to interest rate, credit risk and liquidity risks arise in the normal course of the municipality's operations. 


90 












439 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


49. FINANCIAL INSTRUMENTS (continued) 

Financial risk management 

The Municipality has exposure to the following risks from its use of Financial Instruments: 

• Liquidity risk 

• Interest rate risk 

• Credit risk 

This note presents information about the Municipality's exposure to each of the above risks and the Municipality's 
objectives, policies and processes for measuring and managing risks. 

Further quantitative disclosures are included throughout these financial statements. 

The Accounting Officer has overall responsibility for the establishment and oversight of the Municipality's risk 
management framework. The Municipality's risk management policies are established to identify and analyse the risks 
faced by the Municipality, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk 
management policies and systems are reviewed regularly to reflect changes to market conditions and the Municipality's 
activities. 

As part of managing the municipality's liquidity risk. Promissory notes have been issued to facilitate the timeous 
repayment of the borrowings. No further terms and conditions are attached to these promissory notes other than the 
normal repayment terms and conditions of the loan repayment. 

The Municipality, through its training and management standards and procedures, aims to develop a disciplined and 
constructive environment in which all employees understand their roles and obligations. 

Fair vaiues versus carrying amounts: 

The fair values of financial assets and liabilities, together with the carrying amounts shown in the balance sheet are as 
follows: 


Carrying amount 


Investments 

4,050,000 

4,850,000 

4,050,000 

4,850,000 

Long-term receivables 

98,843 

227,149 

98,843 

227,149 

Consumer Debtors 

2,879,048 

2,924,428 

2,882,059 

2,927,847 

Debtors 

2,577,958 

2,236,030 

2,563,357 

2,223,473 

Long-term Liabilities 

10,369,582 

10,000,020 

10,247,716 

9,886,788 

Creditors 

5,741,851 

4,881,677 

5,749,420 

4,889,270 


Fair vaiue 


Investments 

4,050,000 

4,850,000 

4,050,000 

4,850,000 

Long-term receivables 

98,843 

227,149 

98,843 

227,149 

Consumer Debtors 

2,879,048 

2,924,428 

2,882,059 

2,927,847 

Debtors 

2,576,289 

2,234,786 

2,561,688 

2,222,229 

Long-term Liabilities 

10,369,582 

10,000,020 

10,247,716 

9,886,788 

Creditors 

5,733,200 

4,863,737 

5,740,769 

4,871,330 


Basis for determining fair vaiue: 

The following summarises the significant methods and assumptions used in estimating the fair values of the Financial 
Instruments reflected in the tables above: 

Debtors and Creditors: 

The fair value of Debtors and Creditors is estimated as the present value of future cash flows, discounted at the market 
rate of interest at the reporting date. 


91 









440 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

Notes to the Annual Financial Statements 

Group Municipality 

Figures in Rand 2014 2013 2014 2013 


49. FINANCIAL INSTRUMENTS (continued) 

Liquidity risk 

Liquidity risk is the risk that the municipality will encounter in raising funds to cover future commitments. The municipality 
manages liquidity risk through an ongoing review of future commitments and credit facilities. Cash flow forecasts are 
prepared and adequate utilised borrowing facilities are monitored. The following are details of the contractual maturities of 
financial liabilities: 

Standard Bank: 

Ethekwini Municipality - Trading Pre Settlement: 

Ethekwini Municipality - Letter of Credit: 

Ethekwini Municipality - Performance guarantee: 

Ethekwini Municipality -Working Capital Facilities 
Ethekwini Municipality - Fleet Management Card: 

I.C.C. Durban - Credit card: 

I.C.C. Durban - Performance guarantee: 

Durban Marine Theme Park - Working Capital 
Durban Marine Theme Park - Fleet Management 

The total of these facilities amount to 


Group 


At June 30, 2014 

Carrying 

Contractual 

12 months or 

More than 12 


Amount 

Cash Flows 

less 

months 

Borrowings 

10,369,582 

10,369,582 

993,039 

9,376,543 

Trade and other payables 

5,733,200 

5,733,200 

5,733,200 

- 

At June 30, 2013 

Carrying 

Contractual 

12 months or 

More than 12 


Amount 

Cash Flows 

less 

months 

Borrowings 

10,000,020 

1,000,020 

957,999 

9,042,021 

Trade and other payables 

4,863,737 

4,863,737 

4,863,737 

- 

Municipality 

At June 30, 2014 

Carrying 

Contractual 

12 months or 

More than 12 


Amount 

Cash Flows 

less 

months 

Borrowings 

10,247,716 

10,247,716 

992,214 

9,255,502 

Trade and other payables 

5,740,769 

5,740,769 

5,740,769 

- 

At June 30, 2013 

Carrying 

Contractual 

12 months or 

More than 12 


Amount 

Cash Flows 

less 

months 

Borrowings 

9,886,788 

9,886,788 

957,240 

8,929,548 

Trade and other payables 

4,871,330 

4,871,330 

4,871,330 

- 


70.000 
1,500 

80.000 
136,411 

15 

228 

550 

9,995 

5 

298,704 


92 







441 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 

49. FiNANCiAL INSTRUMENTS (continued) 



Group 



At June 30, 2014 

Less than 1 Between 1 and 


Investments 

year 3 years 


• Short-term Investments 

3,550,000 


• Long-term Investments 

500,000 


• Call Deposits 

2,405,000 


At June 30, 2013 

Less than 1 Between 1 and 


Investments 

year 3 years 


• Short-term Investments 

4,350,000 


• Long-term Investments 

500,000 


• Call Deposits 

375,000 


Municipality 



At June 30, 2014 

Less than 1 Between 1 and 


Investments 

year 3 years 


• Short-term Investments 

3,550,000 


• Long-term Investments 

500,000 


• Call Deposits 

2,405,000 


At June 30, 2013 

Less than 1 Between 1 and 


Investments 

year 3 years 


• Short-term Investments 

4,350,000 


• Long-term Investments 

500,000 


• Call Deposits 

375,000 



Market risk 

Market risk is the risk that changes in market prices, such as interest rates and commodity prices will affect the eThekwini 
Municipality’s income or the value of its holdings of financial instruments. The objective of market risk management is to 
manage and control market risk exposures within acceptable risk parameters, while optimizing the eThekwini 
Municipality’s service delivery objectives. GRAP 104 requires entities to disclose sensitivity analysis for each type of 
market risk as shown in the sections below. Interest rate risk is the main category of market risk which affects the Group. 


93 







442 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


49. FINANCIAL INSTRUMENTS (continued) 

Interest rate risk 

-1 -0.5 0 0.5 1 

7,292,465 7,915,753 8,539,041 9,162,329 9,785,616 


Fair Value Sensitivity to interest 
rate movement/shift for floating 
rate Investments 


The municipality's policy is to manage interest rate risk so that fluctuations in variable rates do not have a material impact 
on surplus (deficit). All long-term debt is at fixed rates. 

The municipality's income and operating cash are substantially independent of changes in market rates. The municipality 
has no significant interest bearing assets. 

The Municipality entered into a fixed interest rate swap agreement with Standard Corporate & Merchant Bank in order to 
mitigate the floating interest rate exposure of the DBSA phase 2 loan. During the year R9.4million (2013: R12.3million) 
was recognised in surplus as ineffectiveness arising from fair value hedges. 

On the basis of the assumptions in the table above, a 1% change in the interest rate will result in a 19% change in the 
value of the swap. There is a positive relationship between the swap value and interest rates. 

Cash fiow interest rate risk 


Financial instrument 

Borrowings - Floating Rate 
Interest Rate Swap 
Borrowings - Fixed Rate 


Due in less 
than a year 
30,769 
30,769 
961,445 


Due in one to 
four years 
61,538 
61,538 
4,093,106 


Due after four 
years 

5,100,859 


Swap Cash fiow Sensitivity 


Settlement dates 


Current interest Interest rate 
rate movement: -1 


Floating Rate Loan 
Interest rate swap: 31 
March and 30 September 


8.06 % 9,399,566 

8.06 % 8,689 


Interest rate 
movement: - 
0.5 

8,643,974 

8,644 


Interest rate 
movement: 0 

7,888,382 

7,888 


Interest rate 
movement: 0.5 

7,132,790 

7,132 


Interest rate 
movement: 1 

6,377,198 

6,377 


Credit Quaiity investments 

Domestic Bank 


Long Term Long Term Long Term 
Ratings: AA+ Ratings: AA Ratings: AA- 

2 2 1 


Long Term Short Term Short Term 
Ratings: A- Ratings: A1+ Ratings: A1- 

1 5 1 


Counterparty Ciass 


Domestic Banks 


Exposure 

Limits 

11,520,000 


Cash 

Deposits 

2,405,000 


Medium / 
Short term 
Deposits 

3,550,000 


Long term 
Deposits 

500,000 


94 









443 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


49. FINANCIAL INSTRUMENTS (continued) 

Valuation of Financial Instruments 

Availability of observable market prices and model inputs reduces the need for management opinion and estimation. This 
also reduces the uncertainty associated with determination of fair values. Availability of observable market prices and 
inputs varies depending on the products and markets and is prone to changes based on specific events and general 
conditions of financial markets. 

The Fund has an established control framework with respect to the measurement of fair values. This framework includes 
a portfolio valuation function which is independent of front office management and reports to the Funds Risk committee 
which has overall responsibility of significant fair value measurements. Specific controls include: verification of observable 
pricing inputs and re-performance of model valuation; a review and approval process for new models and changes to 
such models; analysis and investigation of significant daily valuation movement and reporting of significant valuation 
issues to the Funds Risk committee. 

The Fund measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in 
the measurements: 

Level 1: Quoted prices (unadjusted) in an active market for an identical instrument. 

Level 2: Valuation techniques based on observable inputs either directly (ie. as prices) or indirectly (ie. derived from 
prices). This category includes instruments valued using: quoted market prices in active markets for similar instruments; 
quoted prices for identical or similar instruments in markets that are considered less than active ; or other valuator 
techniques where all significant inputs are directly or indirectly observable from market data. 

Level 3: Valuation techniques using significant, unobservable inputs. This category includes all instruments where the 
valuation technique includes inputs not based on observable data and the unobservable inputs have a significant effect 
on the instruments valuation. This category includes instruments that are valued based on quoted prices for similar 
instruments for which significant unobservable adjustments or assumptions are required to reflect differences between 
instruments. 

Fair values of financial assets and financial liabilities that are traded in active markets are based on quoted prices or 
dealer price quotations. 

The Fund uses widely recognised valuation models for determining the fair value of common and more simple financial 
instruments, like interest swaps that use only observable market data and require little management, judgement and / or 
estimation. Observable prices and model inputs are usually available in the market for listed debt, exchange traded 
derivatives and simple over the counter derivatives like interest rate swaps. 

The table below analyses financial instruments measured at fair value at the end of the reporting period by the level in the 
fair value hierarchy into which the fair value measurement is categorized: 


30 June 2014: Financiai Assets at Fair Vaiue 

Level 1 

Level 2 

Level 3 

Total 

through profit or ioss 

Investments 


4,050,000 



4,050,000 

Cash on hand 


18,399 

- 

- 

18,399 

Net Bank Balance 


120,068 

- 

- 

120,068 

Call Investment Deposits 


2,405,000 

- 

- 

2,405,000 

Long-term Receivables 


- 

98,843 

- 

98,843 

Consumer Debtors 


- 

2,882,059 

- 

2,882,059 

Debtors 


- 

2,561,688 

- 

2,561,688 

Long-term Liabilities 


- 

10,247,716 

- 

10,247,716 

Creditors 


- 

5,740,769 

- 

5,740,769 



6,593,467 

21,531,075 

- 

28,124,542 

30 June 2013: Financiai Assets at 

Column 

Level 1 

Level 2 

Level 3 

Total 

Fair Vaiue through profit or ioss 

heading 





Investments 

- 

4,850,000 

- 

- 

4,850,000 

Cash on hand 

- 

4,493 

- 

- 

4,493 

Net Bank Balance 

- 

70,260 

- 

- 

70,260 


95 









444 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 

Notes to the Annual Financial Statements 


Group 


Municipality 

Figures in Rand 

2014 

2013 

2014 2013 

49. FINANCIAL INSTRUMENTS (continued) 

Call Investment Deposits 

Long-term Receivables 

Consumer Debtors 

Debtors 

Long-term Liabilities 

Creditors 

375,000 

227,149 

2,927,847 

2,222,229 

9,886,788 

4,871,330 

375,000 

227,149 

2,927,847 

2,222,229 

9,886,788 

4,871,330 








445 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


49. FINANCIAL INSTRUMENTS (continued) 

Credit risk 

Credit risk consists mainly of cash deposits, cash equivalents and trade debtors. The municipality only deposits cash with 
major banks with high quality credit standing and limits exposure to any one counter-party. Trade receivables comprise a 
widespread customer base. The Municipality has no control over the approval of new customers who acquire properties in 
the designated metro area and consequently incur rates, water and electricity debts. The municipality limits this risk 
exposure in the following ways, in addition to its normal credit control and debt management procedures: 

• through the application of section 118(3) of the Municipal Systems Act (MSA), which permits the municipality to 
refuse connection of services whilst any amount remains outstanding from a previous debtor on the same property. 

• a new owner is advised, prior to the issue of a revenue clearance certificate, that any debt remaining from the 
previous owner will be transferred to the new owner, if the previous owner does not settle the outstanding amount. 

• through the consolidation of rates and service accounts, thereby disconnecting services for the non-payment of any 
of the individual debts, in terms of section 102 of the MSA. 

• reviewing the municipality's Credit Control Policy annually to ensure that it is updated for to current practice that 
enhance revenue collection. 

Long term Receivables and Other Debtors are individually evaluated annually at balance sheet date for impairment of 
discounting. 

The maximum credit and interest risk exposure in respect of the relevant financial instrument is as follows: 


Financial instrument 


Consumer Debtors 

Other Debtors 

Cash and Cash Equivalents 

2,879,048 

2,576,289 

6,859,692 

2,924,428 

2,234,786 

5,559,709 

2,882,059 

2,561,688 

6,593,467 

2,927,847 

2,222,229 

5,299,753 

The ageing of trade receivables at the reporting date was as follows: 




Consumer Debtors: 

Gross 

0 - 30 days 

31-120 days 

More than 120 days 

Less: Provision for Bad Debts 

1,508,817 

518,658 

2,860,534 

(2,008,961) 

1,411,643 

471,820 

3,028,599 

(1,987,634) 

1,511,353 

518,658 

2,860,126 

(2,008,078) 

1,415,578 

471,820 

3,025,956 

(1,985,507) 

Net Consumer Debtors 

2,879,048 

2,924,428 

2,882,059 

2,927,847 

Movement in the provision for Bad Debts: 
Consumers 

Balance at beginning of year 

Contribution 

Bad debts written off 

1,987,634 

553,736 

(532,409) 

1,928,593 

244,514 

(185,473) 

1,985,507 

554,980 

(532,409) 

1,925,168 

245,812 

(185,473) 

Balance at year end 

2,008,961 

1,987,634 

2,008,078 

1,985,507 

Movement in the provision for Bad Debts: 

Other 

Balance at beginning of year 

Contribution 

Bad debts written off 

1,586,555 

1,000,833 

(534) 

397,190 

1,189,365 

1,586,555 

1,000,833 

(534) 

397,190 

1,189,365 

Balance at year end 

2,586,854 

1,586,555 

2,586,854 

1,586,555 


97 











446 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


50. Budget disclosure 

Material differences between budget and actual amounts 

Other Own Revenue<budget-the increase is mainly attributable to the change in the basis if revenue recognition of Traffic 
Fines Income, which was as a result of the amendment to IGrap 1 .In prior years Traffic Fine Income was recognised 
based on recovery in accordance with past trends. i.e. only 20% of fines issued were recognised as recoverable. The effect 
of the change to the recognition of the traffic fines revenue is that all fines issued are recognised in revenue. Effective 
enforcement has also resulted in more applications being submitted thus increasing revenue above expections. 


Debt lmpairment>Budget. The increase is attributable to the provision for impairment of outstanding traffic fines i.e (fines 
considered irrecoverable based on past trends) as well as other Debtors (including DOFIS). 
Transfers and Grants<Budget The saving is attributed to fact that there was an anticipation that an additional 18 Soup 
Kitchens would have been operational this year .however this didnot materialise. 

Other Expenditure<Budget ETA-The savings are a results of a delay in appointing the new service provider for buses(i.e 
the disabled) due to an appeal by unsuccessful bidders. 

Transfers Recognised-Capital< Budget The saving is a result of delays in Rehabilitations/Upgrading of R293 and Ex- 
owned Affairs projects. PTIS the implementation plan and 2013/2014 grant appliaction was based on the premise that 
contracts for the right of way construction will be awarded in December 201 3, but unfortunately unexpected delays were 
experienced in Go Durban Projects. 

CAPITAL< Budget Savings is mainly as a result of a delay in the implementation of IRPTN grant funded projects, a 
number of projects were in the planning phase. 

The capital expenditure of R4.2billion excludes expenditure on Housing top structure. If this housing expenditure is 
included as was the case in the approved budget, the overall percentage spent would be 109% instead of 89% as 
reflected in the Appropriation Statement. 

Differences between budget and actuai amounts basis of preparation and presentation 

A comparison of the budget and actual information has been disclosed in the Appropriation Statement and not in 
columnar format as required due to the classification as per budget regulations as prescribed by National Treasury 
differing to the GRAP disclosure requirements. 


98 







447 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended June 30, 2014 


Notes to the Annual Financial Statements 



Group 

Municipality 

Figures in Rand 

2014 2013 

2014 2013 


51. Deviation from IGRAP 1 

Paragraph 13 of IGRAP1 requires that an entity apply amendments to the standard prospectively, however the 
amendment has beeing applied retrospectively. The retrospective application is considered to provided more useful 
information to the users of the financial statements. 

The impact of prospective application had it been applied would have been as follows: 
Net Surplus would have been R12million higher and Accounts Receivable would have been R156million lower than 
currently stated. 

52. Events after the reporting date 

On the 18th of August 2014 ,the Trustees of the Durban Infrastructural Developement Trust resolved to vest all rights of 
the Trust to the Municipality. 


99 







448 


eThekwini Municipality 

Annual Financial Statements for the year ended 30 June 2014 

Notes to the Annual Financial Statements 

Figures in Rand thousand 

NOTE 53A: EXTERNAL LOANS FOR THE YEAR ENDED 30 JUNE 2014 






BALANCE 

RECEIVED 

REDEEMED 

BALANCE 

DESCRIPTION 

% 

LOAN 

DATE 

AT 

DURING 

DURING 

AT 



No. 

REPAYABLE 

30-Jun-13 

THE YEAR 

THE YEAR 

30-Jun-14 





R OOO's 

R OOO's 

R OOO's 

R OOO's 

FRB PN 

Variable 1/58 


30-06-2016 

148 313 


29 856 

118457 

INCAINDWA 

9.52% 1/66 


30-06-2020 

349 782 


65 462 

284 320 

Nedbank Ltd 

8.47% 1/67 


31-03-2021 

619 687 


56 921 

562 766 

DBSA Ph 1 

13.50% PI 


30-09-2017 

344 231 


59 090 

285 141 

DBSA Ph 2 

Variable P2 


31-03-2016 

126 831 


31 768 

95 063 

DBSA Ph 3 

12.90% P3 


30-09-2017 

238 999 


36 664 

202 335 

DBSA Ph 4 

10.40% P4 


30-06-2019 

367 153 


79 626 

287 527 

DBSA Ph 5 

8.90% P5 


30-06-2020 

201 708 


19 926 

181 782 

DBSA Ph 6 

8.75% P6 


30-06-2022 

642 938 


94 218 

548 720 

DBSA Ph 7 

8.30% P7 


02-01-2028 

2 699 647 


240 808 

2 458 839 

DBSA Ph 8 

9.85% P8 


30-06-2029 

0 

1 500 000 

0 

1 500 000 

NEDBANK 7 YRS 

10.09% 1/70 


28-02-2017 

337 837 


72 426 

265 411 

NEDBANK 5 YRS 

9.21% 1/71 


30-04-2015 

230 822 


110218 

120 604 

RMBRIbISYRS 

10.28% 1/72 


30-06-2025 

899 831 


40 778 

859 053 

ABSA 7 YRS 

8.73% 1/73 


29-09-2017 

724 552 


137 888 

586 664 

ABSA15YRS 

10.19% 1/74 


30-06-2026 

936 263 


37114 

899 149 

AFD Calyon 

9.52% 1/68 


31-12-2018 

35 915 


6 545 

29 370 

RMBR1B20YRS 

9.53% 1/75 


30-06-2032 

982 279 


19 766 

962 513 

Total Annuity Loans 




9 886 788 

1 500 000 

1 139 074 

10 247 716 


9 886 rssll 1 500 OOoll 1 139 074|| 10 247 716 


TOTAL EXTERNAL LOANS 






449 


eThekwini Municipality and its Municipal Entities 

Annual Financial Statements for the year ended 30 June 2014 

Notes to the Annual Financial Statements 

Figures in Rand thousand 


53b: EXTERNAL LOANS FOR THE YEAR ENDED 30 JUNE 2013 (Continued) 


Description 

Loan Number 

Interest Rate 

Date Repayable 

Balance at 30/06/13 

Interest Received during the 
year 

Redeemed / (Interest 
Capitalised) during this 
period 

Balance at 30/06/14 



% 


R'OOO 

R'OOO 

R'OOO 

R'OOO 

DURBAN MARiNE THEME PARK: 








LONG TERM LOANS 
















Debenture Stock 


13 


110 274 

9 395 

0 

119 669 









Total Stock Loans 




110 274 

9 395 

0 

119 669 









DBSA- Village Walk 


8.5 


2 958 

0 

-759 

2199 









Total Annuity Loans 




2 958 

0 

-759 

2199 









TOTAL EXTERNAL LOANS (DURBAN MARINE 

THEME PARK) 




113 232 

9 395 

-759 

121 868 









TOTAL EXTERNAL LOANS: ETHEKWINI 
MUNICIPALITY 




9 886 788 

1 500 000 

-1 139 074 

10 247 714 

















GROUP TOTAL: 




10 000 020 

1 509 395 

-1 139 833 

10 369 582 


















101 










































450 


eThekwini Municipality 

Annual Financial Statements for the year ended 30 June 2014 

Notes to the Annual Financial Statements 

Figures in Rand thousand 


Note 54. ANALYSIS OF PROPERTY PLANT AND EQUIPMENT -GROUP 



1 Cost / Revaluation | 

1 Accumulated Depreciations | 



Opening Baiance 

Opening Under 
Construction 

Additions 

Under 

Construction 

Disposais 

Impairments 

Transfers 

Ciosing Balance 

Opening Balance 

Opening 

Impairment 

Additions 

Disposals 

Impairments 

Impairments 

Reversal 

Transfers 

Closing Balance 

Carrying Value 


R'OOO 


R'OOO 

R'OOO 

R'OOO 

R'OOO 

R'OOO 

R'OOO 

R'OOO 

R'OOO 


R'OOO 

R'OOO 

R'OOO 

R'OOO 

R'OOO 

R'OOO 

R'OOO 

Land and Buildings 

Land 

443 123 


60 673 


-212 



503 584 





0 




0 

503 584 

Buiidings 

4 797 746 

478 596 

340 195 

551 047 

-1 027 


-14 209 

6 152 348 

1 071 257 



159 309 

-974 



-483 

1 229 109 

4 923 239 


5 240 869 

478 596 

400 868 

551 047 

-1 239 

0 

-14 209 

6 655 932 

1 071 257 

1 o| 

159 309 

■974 

0 

0 

-483 

1 229109 

5 426 823 

Infrastructure 

















0 


Roads 

9 053 315 

453 861 

538 197 

320 261 




10 365 634 

1 770 135 



324 395 





2 094 530 

8 271 104 

Traffic Equipment & Ranks 

568 012 

266 314 

17 257 

-78 178 




773 405 

202 667 



29 010 





231 677 

541 728 

Stormwater Drainage 

8 504 241 

24 409 

811 427 

-8 456 

-54 



9 331 567 

1 135 817 



1 79 296 

-8 

815 



1 315 920 

8 015 647 

Sewerage Pumps 

546 462 

76 844 

5 375 

-24 789 




603 892 

1 82 728 



20 259 





202 987 

400 905 

Sewerage Mains & Reticuiation 

9 244 

984 037 

9 130 

1 62 294 




1 1 64 705 

4 972 



257 





5 229 

1 1 59 476 

Purification Works 

676 208 

21 843 

22 798 

-1 100 

-2 



719 747 

1 84 907 



65 676 

-1 

4 



250 586 

469 161 

Refuse Sites & Transfer Station 

562 360 

161 727 

49 501 

-102 050 




671 538 

360 811 



16 876 





377 687 

293 851 

Water Mains & Reticuiation 

10 954 

1 245 048 

15 898 

97 749 




1 369 649 

1 090 



1 001 





2 091 

1 367 558 

Water Reservoirs 

388 753 

81 129 

21 669 

140 090 




631 641 

78 587 



7 950 


56 



86 593 

545 048 

Generai infrastructure 

149 398 

17 774 

47 279 

0 




214451 

14 383 



8 267 





22 650 

191 801 

Mains 

2314161 

87 223 

132 462 

4 795 

-1111 



2 537 530 

766 040 


0 

58 760 

-1 064 

2 



823 738 

1 71 3 792 

Major Substations 

2 426 690 

230 332 

137 808 

38 636 

-197 



2 833 269 

646 070 


0 

69 611 

-193 

435 



715 923 

2 117 346 

Pubiic Lighting 

260 973 

22 442 

30 654 

-11 499 




302 570 

85 797 


0 

14014 

0 

0 



99 811 

202 759 

Connections & Switches 

841 110 

31 993 

59 379 

16 144 

-3 722 



944 904 

449 827 


0 

43 571 

-3 722 

0 



489 676 

455 228 


26 311 881 

3 704 976 

1 898 834 

553 897 

-5 086 

0 

0 

32 464 502 

5 883 831 

1 ?l 

838 943 

-4 988 

1 312 

0 

0 

6 719 098 

25 745 404 

Community Assets 

Recreation 

4 031 188 

12 178 

28 267 

4 039 



248 

4 075 920 

487 337 



107 965 


3 113 



598 415 

3 477 505 

Ciinics & Depots 

165 648 

10 980 

2 626 

675 




1 79 929 

30 534 



3 278 


225 



34 037 

145 892 

Cemetries & Crematoria 

22 050 

809 

2 562 

-641 




24 780 

3 699 



421 





4 120 

20 661 

Community Haiis 

101 809 

5 025 

643 

331 




107 808 

27 323 



2012 


443 



29 778 

78 030 

Fire Stations 

61 482 

4 949 

839 

30 374 




97 644 

16 150 



1 259 


737 



18 146 

79 498 

Libraries 

1 1 2 362 

9 703 

330 

9 643 




132 038 

38 171 



2 383 



-314 


40 240 

91 798 

Museums 

23 288 

11 102 

1 062 

-217 




35 235 

4 855 



597 





5 452 

29 783 

Poiice Stations 

43 331 

0 

1 718 

-11 815 




33 234 

6 946 



802 





7 748 

25 486 


4 561 158 

54 746 

38 047 

32 389 

0 

0 

248 

4 686 588 

615015 

1 ?l 

118717 

0 

4518 

-314 

0 

737 936 

3 948 653 

Other Assets 

Airconditioning 

93 631 

365 

8 420 

521 

-70 



102 867 

26 578 



7 111 

-65 

26 



33 650 

69 217 

Security Systems 

1 79 429 


10 795 


-69 



190 155 

97 594 



16 649 

-40 




1 1 4 203 

75 953 

Computer Equipment 

682 739 


62 626 


-8 070 



737 295 

429 690 



1 03 404 

-7 161 

26 



525 959 

21 1 336 

Car Parks & Fencing 

664 738 


28 333 





693 071 

274 444 



39 011 

-1 061 

131 



312 525 

380 546 

Piant & Equipment 

1 582 626 

5 946 

257 522 

-270 

-8 019 


235 

1 838 040 

974 543 



1 28 780 

-7 065 

60 


-16 

1 096 301 

741 739 

Furniture & Fittings 

219 670 


14 131 


-2 291 



231 510 

136 072 



22 370 

-320 

14 



158 136 

73 374 

Markets 

265 875 

2 493 

39 957 

-1 120 




307 205 

73 824 



6 487 

-920 




79 391 

227 814 

Vehicies 

2 680 963 

68 186 

216 448 

-25 408 

-3 784 



2 936 405 

1 481 537 



239 554 

-1 322 

10 231 



1 730 000 

1 206 405 

Fire Engines 

17 034 

3 043 

11 

0 




20 088 

13 688 



454 





14 142 

5 946 


6 386 705 

80 033 

638 243 

■26 277 

-22 303 

0 

235 

7 056 636 

3 507 969 

0 

563 820 

-17 954 

10 488 

0 

-16 

4 064 307 

2 992 329 



















Total 

42 500 613 

4 318 351 

2 975 992 

1 1 1 1 056 


0 

■13 726 

50 863 658 

1 1 078 072 

0 

1 680 789 

-23 916 

16318 

-314 

-499 

12 750 449 

38 113209 



















102 






451 


eThekwini Municipality and its Municipal Entities 
Annual Financial Statements for the year ended 30 June 2014 
Notes to the Annual Financial Statements 
Figures in Rand thousand 


Note 54. ANALYSIS OF PROPERTY PLANT AND EQUIPMENT AS AT 30 JUNE 2014 - MUNICIPALITY 



I Cost / Revaluation 

1 Accumulated Depreciations 



Opening Balance 

Opening Under 
Construction 

Additions 

Under Construction 

Disposals 

Impairments 

Transfers 

Opening Balance 

I Opening 

Impairment 

Additions 

Impairments 

1 Impairments 
Reversal 

Transfers 

Closing Balance 

Carrying Value 


R'OOO 


R'OOO 

R'OOO 

R'OOO 

R'OOO 


R'OOO 

R'OOO 

R'OOO 


R'OOO 

R'OOO 


R'OOO 

R'OOO 

R'OOO 

R'OOO 

Land and Buildings 

Land 

443 123 


60 673 


-212 












0 

503 584 

Buildings 

3 460 901 

478 006 

337 269 

551 167 

-1 015 



-14 209 

732 780 



113 163 




-483 

844 486 

3 967 633 


3 904 0241 

478 006 1 

397 9421 

551 167 1 

-1 2271 

1 9 \ 

-14 209 

732 780 

I 0 

113163 

0 

1 0 

-483 

844 486 

4 471 217 

Infrastructure 

















0 


Roads 

9 053 315 

453 861 

538 197 

320 261 





1 770 137 



324 395 





2 094 532 

8 271 102 

Traffic Equipment & Ranks 

568 012 

266 314 

17 257 

-78 178 





202 667 



29 010 





231 677 

541 728 

Stormwater Drainage 

8 504 241 

24 409 

811 427 

-8 456 

-54 




1 135 817 



179 296 

815 




1 315 920 

8 015 647 

Sewerage Pumps 

546 462 

76 844 

5 375 

-24 789 





182 728 



20 259 





202 987 

400 905 

Sewerage Mains & Reticulation 

9 244 

984 037 

9 130 

162 294 





4 972 



257 





5 229 

1 159 476 

Purification Works 

676 208 

21 843 

22 798 

-1 100 

-2 




184 907 



65 676 

4 




250 586 

469 161 

Refuse Sites & Transfer Station 

562 360 

161 727 

49 501 

-102 050 





360 81 1 



16 876 





377 687 

293 851 

Water Mains & Reticulation 

10 954 

1 245 048 

15 898 

97 749 





1 090 



1 001 





2 091 

1 367 558 

Water Reservoirs 

388 753 

81 129 

21 669 

140 090 





78 587 



7 950 

56 




86 593 

545 048 

General Infrastructure 

149 398 

17 774 

47 279 

0 





14 383 



8 267 





22 650 

191 801 

Mains 

2314161 

87 223 

132 462 

4 795 

-1 111 




766 040 


0 

58 760 

2 




823 738 

1 713 792 

Major Substations 

2 426 690 

230 332 

137 808 

38 636 

-197 




646 070 


0 

69 611 

435 




715 923 

2 117346 

Public Lighting 

260 973 

22 442 

30 654 

-11 499 





85 797 


0 

14014 

0 




99 811 

202 759 

Connections & Switches 

841 110 

31 993 

59 379 

16 144 

-3 722 




449 827 


0 

43 571 

0 




489 676 

455 228 


26 311 8811 

3 704 976 1 

1 898 8341 

553 8971 

•5 086 1 

1 01 

0 

5 883 8331 

I 0 

838 943 

1 312 

1 0 

0 

6 719 100 

25 745 402 

Community Assets 

Recreation 

4 031 188 

12 178 

28 267 

4 039 




248 

487 337 



107 965 

3 113 




598 415 

3 477 505 

Clinics & Depots 

165 648 

10 980 

2 626 

675 





30 534 



3 278 

225 




34 037 

145 892 

Cemetries & Crematoria 

22 050 

809 

2 562 

-641 





3 699 



421 





4 120 

20 661 

Community Halls 

101 809 

5 025 

643 

331 





27 323 



2 012 

443 




29 778 

78 030 

Fire Stations 

61 482 

4 949 

839 

30 374 





16 150 



1 259 

737 




18 146 

79 498 

Libraries 

112 362 

9 703 

330 

9 643 





38 171 



2 383 



-314 


40 240 

91 798 

Museums 

23 288 

11 102 

1 062 

-217 





4 855 



597 





5 452 

29 783 

Police Stations 

43 331 

0 

1 718 

-11 815 





6 946 



802 





7 748 

25 486 


4 561 1581 

54 746 1 

38 0471 

32 3891 

0| 

1 01 

248 

615 0151 

I 0 

118 717 

4 518 

1 -314 

0 

737 936 

3 948 653 

Computer Equipment 

678 015 


61 403 


-8 070 




426 496 



102 513 

26 




521 875 

209 473 

Car Parks & Fencing 

664 738 


28 333 






274 444 



39 011 

131 




312 525 

380 546 

Plant & Equipment 

1 445 776 

5 946 

240 206 

-270 

-7 630 



235 

884 787 



115 982 

60 



-17 

993 747 

690 516 

Furniture & Fittings 

161 805 


11 324 


-2 229 




101 637 



15 094 

14 




116 425 

54 475 

Markets 

265 875 

2 493 

39 957 

-1 120 





73 824 



6 487 





79 391 

227 814 

Vehicles 

2 679 046 

68 186 

216 383 

-25 408 

-3 784 




1 480 795 



239 440 

10 228 




1 729 141 

1 205 282 

Fire Engines 

17 034 

3 043 

11 

0 





13 688 



454 





14 142 

5 946 


6 185 349I 

80 0331 

616 832I 

■26 277 1 

-21 8521 

0| 

235 

3 379 842 

0 

542 741 

10 485 

0 

-17 

3 915 098 

2 919 222 

















Total 

1 1 lU I 


2 951 6551 

1 111 176I 

-28 1651 

01 

-13 726 


0 



-3141 




















103 





452 


eThekwini Municipality 

Annual Financial Statements for the year ended 30 June 2014 

Notes to the Annual Financial Statements 

Figures in Rand thousand 


Note 55: Awards to close family members of person in service of municipality 

The details of total awards (25) to close family members amounting to R1 4 1 94 450 that transacted with the municipality 
is as follows: 


No 

Supplier Name 

Spouse Name 

Employee Name 

Employee Designation 

R'OOO 

1 

NDIMANDE TRADING CC 

NOMKHOSI 

BHEKUMUZI MTHETHWA 

GENERAL ASSISTANT 

21 

2 

MBHEDULE TRADING 
ENTERPRISE 

THOKOZANI PATRICIA 

BONGANI MKHIZE 

VIP PROTECTION GUARD 

2 

3 

VERSEELD & ASSOCIATES 
CC 

SHARLENE 

DONALD JOLLEY 

SENIOR NETWORKS & 
TELECOMMS ANALYST 

43 

4 

WHIZ CONSTRUCTION AND 
MAINTENANCE CC 

KALAVANI 

GANESAN PILLAY 

SUPERVISOR DRIVER 

448 

5 

PHISETH CONSTRUCTION 

CC 

PHILILE MINENHLE 

JACQUES VAN HEERDEN 

CHIEP CIVIL ENGINEERING 
TECHNOLOGIST 

131 

6 

LONG ISLAND TRADING 236 
CC 

JOHN SILUNGU 

LINDIWE DLAMINI 

SENIOR PROPESSIONAL 
NURSE 

4 

7 

ZONE OE HAPPINESS 
TRADING CC 

MZONDENI 

MUSAWENKOSI 

NTOMBIEUTHI MAKHOBA 

PROEESSIONAL NURSE 

27 

8 

BALLITO PLUMBERS CC 

ALISTAIR ARNOLD 
ROWLAND 

RESHMA VANDAYAR 

PRINCIPAL CLERK 

250 

9 

AYLISH TRADING CC 

KENESEN 

TRISHA GOVENDER 

PROPESSIONAL NURSE 

17 

10 

NYANDAYOMKHONTO 
TRADING ENTERPRISE 

GUGU ANGELINE 

ZITHA MCHUNU 

ENVIRONMENTAL HEALTH 
MONITORS 

138 

11 

MGADENI TRADING 
ENTERPRISE CC 

REGINAH NELISIWE 

MOSES DUBAZANE 


59 

12 

NZUNGWANE TRADING 

NGUBANEIGNATIA 

NONHLANHLA 

PATRICK MPEKA 

COUNCILLOR 

330 

13 

GABHISA SERVICES CC 

LUCKY NHLANHLA 

BONGEKILE HLONGWA 

SENIOR PROFESSIONAL 

NURSE 

8218 

14 

IYER URBAN DESIGN STUDIO 

KAMALEN 

DEVOSHINI KONAR 

SENIOR PROFESSIONAL 
PLANNER 

2851 

15 

BHA’S BUILDING 

CONSTRUCTION CC 

THEMBINKOSI WISEMAN 

ANGELINA ZUMA 

CASHIER CLERK 

74 

16 

NHLANZI CONSULTANTS CC 

PHINDA 

PRISCILLA SHEMBE 

SENIOR MANAGER (SAFER 
CITIES) 

153 

17 

MAZIDLEKHAYA PHOTO STUDIO 

NTOKOZO 

THANDEKILE MSANI 

MANAGER {HUMAN 
RESOURCES) 

94 

18 

SILUNON BUSINESS 
ENTERPRISE CC 

NOKUTHULA MARY-ANNE 

JUSTICE DLAMINI 

SENIOR MANAGER (FOOD 
SAFETY) 

84 

19 

SANDILES PLUMBING 

SERVICES CC 

SANDILE SUDNEY 

BUSISIWE NYATHIKAZI 

LIBRARIAN 

281 

20 

ZIZAMELENI SERVICE 

PROVIDER CC 

FAKAZANI EUNICE 

BONKE CHILI 

COUNCILLOR 

113 

21 

QOQO CONTRACTING 

SERVICES CC 

DUMISILE DOREEN DOLLY 

MZOKHONA NGCOBO 

EDUCATION OFFICER 

122 

22 

HOME GIRLS TRADING CC 

NOSIPHO 

JACKSON NZAMA 

PARK SUPERVISOR 

14 

23 

JABULILE ANDSBUSISO 
SUPPLIERS CC 

RICHARD SIBUSISO 

HLENGIWE MALEVU 

SPORT OFFICER 

41 

24 

OTHEKWANE TRADING 
ENTERPRISE CC 

PORTIA 

PRITURED ZWANE 

SUPERVISOR 

38 

25 

UMZACA CONTRACTORS CC 

THULANI CLIFTON 

SUKEPHIZONDI 

SENIOR HUMAN RESOURCES 
OFFICER 

640 


Total value of awards 


14194 


104 






















































































































































454 


eThekwini Municipality and its Municipal Entities 
Annual Financial Statements for the year ended 30 June 201 4 
Notes to the Annual Financial Statements 
Figures in Rand thousand 


APPENDIX A:SEGMENTAL ANALYSIS OF PROPERTY, PLANT AND EQUIPMENT -GROUP 




Accumulated Depreciation 

Carrying Value 

Opening Balance Cost 

Opening Balance Capital 

Under Construction 

Additions 

Disposals 

Transfers 

Closing Balance 

Opening Balance 

Additions 

Disposals 

Impairments 

Impairments Reversal 

Transfers 

Closing Balance 



R’OOO 


R'OOO 

R'OOO 

R'OOO 

R’OOO 

R'OOO 


R'OOO 

R'OOO 

R’OOO 

R’OOO 

R’OOO 

R’OOO 

R’OOO 

Miscellaneous 

28 454 

- 


- 


28 454 

13 

021 

1 672 

- 




14 692 

13 762 

Formal Housing 

128 241 

- 

650 

(1 209) 

11 

127 692 

62 

060 

1 535 

(955) 



5 

62 645 

65 048 

Legal Services 

9 922 

- 

57 

(6) 

266 

10 239 

2 

422 

396 

(6) 

1 


99 

2 912 

7 327 

Real Estates 

84 632 

1 016 

565 

(338) 

132 

89 oil 

20 

075 

2 523 

(278) 

4 


47 

22 372 

66 640 

Health 

193 587 

11 688 

12 547 

(209) 

473 

231 515 

70 

788 

6 494 

(200) 

249 


192 

77 523 

153 992 

Skills Development 

2 964 

- 

251 

(59) 

306 

3 462 

1 

639 

376 

(52) 

- 


36 

1 999 

1 463 

Emergency Control Centre - Admin 

127 509 

- 

3 939 

(50) 

4118 

145 358 

67 

817 

10 474 

(15) 

- 


3168 

81 444 

63 914 

Grant in Aid 

- 

- 

- 

- 


- 


- 

- 

- 

- 



- 

- 

Seourity 

2 004 

2 686 

51 

- 

27 

9 412 


894 

244 

- 

- 


4 

1 142 

8 270 

Metropolitan Police 

83 977 

- 

2 876 

(475) 

(163) 

86 578 

29 

641 

4 033 

(420) 

- 


15 

33 268 

53 310 

Retail Market 

66 976 

150 

1 450 

(4) 

(2) 

68 720 

21 

679 

1 739 

(4) 

- 


2 

23 415 

45 305 

Sanitation 

3 579 085 

1 083 812 

544 281 

(263) 

(68) 

5 484 558 

853 

963 

164 523 

(227) 

69 


(65) 

1 018 263 

4 466 296 

Gas 

112 667 

- 

5 392 

- 


118 059 

17 

781 

4 395 

- 




22177 

95 883 

Airport 

2 211 

- 

600 

(10) 


2 801 


634 

103 

(8) 

- 



729 

2 072 

Housing 

1 206 263 

35 420 

18 752 

(124) 

166 

1 305 745 

256 

135 

42112 

(101) 

- 


43 

298189 

1 007 556 

Market Service 

121 021 

- 

3 731 

(12) 

(19) 

124 721 

27 

889 

3 473 

(11) 



(12) 

31 339 

93 383 

Municipal Information & Policy 

4 541 

- 

193 

- 


4 733 

2 

694 

225 

- 

- 


(2) 

2 917 

1 816 

Ombudsperson & Head : Investigation 

1 129 

- 

289 

(139) 

321 

1 600 


402 

169 

(125) 

- 


15 

462 

1 138 

Offioe Of International & Governance 

610 

- 

141 

- 

(3) 

748 


441 

69 


1 


(9) 

502 

247 

Community Participation 

3 627 

- 

205 

- 


4 502 

2 

924 

225 

- 

- 


(1) 

3147 

1 355 

Office Of Geogr^hic Information 

4191 

- 

225 

(57) 

(42) 

4 317 

1 

618 

317 

(51) 

- 


(42) 

1 842 

2 474 

City Manager’s Offioe 

107 

- 

45 

- 


152 


104 

3 

- 

- 



108 

45 

Strategic Projects 

749122 

- 

20 518 

- 

(13 735) 

755 90S 

77 

120 

32 879 

- 

- 


(509) 

109 489 

646 416 

Office Of The D C M : Susf. Development 

143 

- 

35 

(34) 

(5) 

139 


38 

20 

(28) 

- 


(2) 

27 

112 

Office of the D C M iSust.Proourement 

438 

- 

233 

(28) 

(24) 

618 


166 

67 

(24) 

- 


(11) 

199 

419 

Offioe Of The D C M : Health, Safety 

4 757 

- 

237 

- 

37 

5 031 

1 

687 

380 

- 

- 


22 

2 089 

2 942 

Office Of The D C M : Governance 

12 

- 

- 

- 


12 


11 

0 

- 

- 



12 

0 

Office Of The D C M : Corp & HR 

278 

- 

45 

- 

4 

327 


191 

43 

- 

- 


(25) 

209 

118 

Office Of The D C M : Treasury 

846 

- 

130 

(14) 

(46) 

916 


599 

71 

(12) 

- 


(74) 

585 

331 

Development Planning & Management 

80 659 

770 

5 818 

(241) 

(60) 

86 946 

6 

281 

1 278 

(230) 

- 


(18) 

7 310 

79 635 

Economio Development & Faoilitation 

507 829 

89 359 

59 339 

(246) 

83 

702 996 

58 

680 

19 732 

(229) 

- 


53 

78 236 

624 760 

City Enterprises 

3 435 

- 

70 

(106) 

247 

3 646 

1 

739 

521 

(86) 

- 


56 

2 231 

1 415 

Business Support 

144 098 

1 576 

1 497 

(578) 

(5) 

146 227 

42 

254 

5 396 

(20) 

0 


6 

47 637 

98 590 

Procurement 

13 294 

1 353 

474 

(107) 

174 

13 835 

8 

646 

590 

(92) 

- 


12 

9157 

4 678 

Water 

6 713 859 

1 359 582 

584 939 

(1 169) 

21 608 

8 931 392 

1 116 

516 

172 212 

(876) 

913 


1 409 

1 290175 

7 641 217 

Solid Waste 

1 041 273 

162 208 

242 593 

(3174) 

72 

1 340 440 

747 

002 

66 552 

1 400 

475 


22 

815 451 

524 990 

Engineering 

9 946 385 

1 008 529 

600 011 

(850) 

(70 413) 

11 852 551 

1 996 

371 

342 491 

(757) 

- 


(3 410) 

2 334 694 

9 517 857 

Emergency Services 

286 865 

8 768 

11 910 

(2107) 

(430) 

324 763 

115 

068 

12 257 

(870) 

4 825 


798 

132 079 

192 684 

Parks, Recreation, Cemetries & 

1 762 870 

38 716 

44 642 

(2 037) 

2 542 

1 847 709 

606 

133 

59 903 

(1 694) 

3 635 

(314) 

955 

668 619 

1 179 091 

Governance 

146 909 

56 514 

56 455 

(82) 

2 

208 088 

49 

674 

6 692 

(74) 

- 


(24) 

56 269 

151 820 

Communications 

2 860 

- 

225 

(261) 


2 824 

1 

512 

356 

(236) 

- 


(0) 

1 631 

1 193 

Regional Centres 

108 459 

192 

2191 

(1) 

155 

112 032 

35 

016 

3 062 

(1) 

- 


110 

38186 

73 846 

Human Resources 

14 084 

- 

1 633 

(683) 

961 

17 842 

9 

352 

1 334 

(651) 

- 


269 

10 304 

7 537 

Management Services & Org Development 

855 

- 

74 

(27) 

144 

1 046 


413 

118 

(22) 

- 


33 

542 

504 

Finance 

16 629 

- 

368 

(368) 

51 

16 680 

12 

938 

613 

(333) 

11 


90 

13 319 

3 361 

City Fleet 

972 610 

26 636 

74 025 

(459) 

(114 073) 

940 225 

543 

185 

81 804 

(390) 

230 


(47 855) 

576 974 

363 251 

Office Of Audit 8 Perfomance Management 

1 483 

- 

99 

- 

264 

1 846 


770 

183 

- 

- 


82 

1 035 

811 

Information Technology 

621 586 

- 

46 424 

(337) 

(10 371) 

657 303 

406 

402 

75 211 

(241) 

0 


(6145) 

475 228 

182 075 

Ethekwini Transport Authority 

856100 

132 798 

75 713 

(567) 

164175 

1 448 415 

258 

262 

41 578 

(202) 

- 


51 455 

351 093 

1 097 323 

Ocoupational Health 8 Safety 

3 525 

- 

164 

(94) 

137 

4185 

1 

982 

416 

(87) 

- 


32 

2 343 

1 841 

ASMS 

7 235 

38 098 

39 803 

(21) 

15 

47132 

2 

407 

1 415 

(21) 

- 


(72) 

3 729 

43 403 

Durban Energy Office 

52 367 

226 

292 

(2) 

10 

52 666 

2 

595 

2 725 

(1) 

- 


(394) 

4 925 

47 741 

Durban Transport 

711 353 

- 

251 

(30) 

(1 823) 

709 751 

282 

026 

74144 

(26) 

- 


(1 553) 

354 591 

355 160 

Office Of The D C M : Health 8 Social 

7146 

- 

57 

- 

59 

7 262 

2 

231 

569 

- 

- 


23 

2 823 

4 439 

Income 

31 816 

38 

6 041 

(1 795) 

952 

37 483 

21 

693 

2191 

(1 580) 

1 


261 

22 566 

14917 

Finance and Major Projects 

996 

- 

29 

(0) 

40 

1 065 


625 

120 

(0) 

0 


(0) 

745 

320 

Int Control and Busines Systems 

187 306 

3 555 

4 290 

(355) 

(98) 

191 711 

S3 

573 

7126 

(324) 

- 


330 

60 705 

131 006 

SDB 

11 887 

- 

- 

- 

(1) 

11 886 

1 

636 

281 

- 

- 


17 

1 934 

9 952 

ABM INK 

26 662 

- 

100 

(0) 


26 762 

6 

918 

1 453 

(0) 

3 



8 374 

18 388 

Performance Management 

752 

- 

185 

(35) 

122 

1 024 


398 

121 

(28) 

- 


66 

557 

467 

Risk Management 

4 937 

- 

366 

- 

(20) 

5 805 

4 

838 

1 

- 

- 



4 839 

966 

Ushaka 

646 245 


15 425 

(453) 


661 217 

232 

565 

30 555 





263121 

398 096 

ICC 

892 545 


8 912 

(10) 


901 328 

234 

039 

36 670 





270 709 

630 619 

Moses Mabhida Stadium 

3 335 406 

- 

8 339 

- 


3 343 746 

409 

763 

112 886 

- 

- 



522 649 

2 821 097 

Electricity Service 

6 625 353 

445 404 

465 799 

(9 401) 


7 585 621 

2 267 

250 

239 675 

(9 227) 

1 396 



2 499 093 

5 086 528 

Total 

42 306 985 

4 509 095 

2 975 992 

(28 630) 

(13 725) 

50 860 773 

1 11 075189 1 

1 680 789 

(19 415) 

11 815 

(314) 

(499) 


38113 209 
















105 

































455 


elhekwini Municipality 

Annual Financial Statements for the year ended 30 June 2014 
Figures in Rand thousand 


APPENDIX A:SEGMENTAL ANALYSIS OF PROPERTY. PLANT AND EQUIPMENT 



1 Cost 

1 Accumulated Depreciation 

Carrying Value 

Opening Balance 

Cost 

Opening Balance 
Capital Under 
Construction 

Additions 

Under 

Construction 

Disposals 

Transfers 

Closing Balance 

Opening Balance 

Additions 

Disposals 

Impairments 

Impairments 

Reversal 

Transfers 

Closing Balance 



R'OOO 




R'OOO 

R'OOO 

R'OOO 

R'OOO 

R'OOO 

R'OOO 


R'OOO 

R'OOO 

R'OOO 

R'OOO 

R'OOO 

R'OOO 

R'OOO 

Miscellaneous 

28 

454 


- 



- 


28 454 

13 

021 

1 672 

- 




14 692 

13 762 

Formal Housing 

128 

241 


- 

650 


(1 209) 

11 

127 692 

62 

060 

1 535 

(955) 



5 

62 645 

65 048 

Legai Servioes 

9 

922 


- 

57 


(6) 

266 

10 239 

2 

422 

396 

(6) 

1 


99 

2 912 

7 327 

Reai Estates 

84 

632 

1 

016 

565 

3 005 

(338) 

132 

89 oil 

20 

075 

2 523 

(278) 

4 


47 

22 372 

66 640 

Health 

193 

587 

11 

688 

12 547 

13 427 

(209) 

473 

231 515 

70 

788 

6 494 

(200) 

249 


192 

77 523 

153 992 

Skills Development 

2 

964 


- 

251 


(59) 

306 

3 462 

1 

639 

376 

(52) 

- 


36 

1 999 

1 463 

Emergency Control Centre - Adn 

127 

509 


- 

3 939 

9 842 

(50) 

4 118 

145 358 

67 

817 

10 474 

(15) 

- 


3 168 

81 444 

63 914 

Grant in Aid 


- 


- 

- 


- 


- 


- 

- 

- 

- 



- 

- 

Security 

2 

004 

2 

686 

51 

4 645 

- 

27 

9 412 


894 

244 

- 

- 


4 

1 142 

8 270 

Metropolitan Police 

83 

977 


- 

2 876 

364 

(475) 

(163) 

86 578 

29 

641 

4 033 

(420) 

- 


15 

33 268 

53 310 

Retail Market 

66 

976 


150 

1 450 

150 

(4) 

(2) 

68 720 

21 

679 

1 739 

(4) 

- 


2 

23 415 

45 305 

Sanitation 

3 579 

085 

1 083 

812 

544 281 

277 712 

(263) 

(68) 

5 484 558 

853 

963 

164 523 

(227) 

69 


(65) 

1 018 263 

4 466 296 

Gas 

112 

667 


- 

5 392 


- 


118 059 

17 

781 

4 395 

- 




22 177 

95 883 

Airport 

2 

211 


- 

600 


(10) 


2 801 


634 

103 

(8) 

- 



729 

2 072 

Housing 

1 206 

263 

35 

420 

18 752 

45 267 

(124) 

166 

1 305 745 

256 

135 

42 112 

(101) 

- 


43 

298 189 

1 007 556 

Market Service 

121 

021 


- 

3 731 


(12) 

(19) 

124 721 

27 

889 

3 473 

(11) 



(12) 

31 339 

93 383 

Municipal Information & Policy 

4 

541 


- 

193 


- 


4 733 

2 

694 

225 

- 

- 


(2) 

2 917 

1 816 

Ombudsperson & Head : Investic 

1 

129 


- 

289 


(139) 

321 

1 600 


402 

169 

(125) 

- 


15 

462 

1 138 

Ottice Of International & Governa 


610 


- 

141 


- 

(3) 

748 


441 

69 


1 


(9) 

502 

247 

Community Participation 

3 

627 


- 

205 

670 

- 


4 502 

2 

924 

225 

- 

- 


(1) 

3 147 

1 355 

Ottice Of Geographic Informatior 

4 

191 


- 

225 


(57) 

(42) 

4 317 

1 

618 

317 

(51) 

- 


(42) 

1 842 

2 474 

City Manager's Office 


107 


- 

45 


- 


152 


104 

3 

- 

- 



108 

45 

Strategic Projects 

749 

122 


- 

20 518 


- 

(13 735) 

755 905 

77 

120 

32 879 

- 

- 


(509) 

109 489 

646 416 

Ottice Of The D C M ; Sust. Dev« 


143 


- 

35 


(34) 

(5) 

139 


38 

20 

(28) 

- 


(2) 

27 

112 

Office of the D C M :Sust. Procun 


438 


- 

233 


(28) 

(24) 

618 


166 

67 

(24) 

- 


(11) 

199 

419 

Office Of The D C M ; Health, Sa 

4 

757 


- 

237 


- 

37 

5 031 

1 

687 

380 

- 

- 


22 

2 089 

2 942 

Office Of The D C M ; Governant 


12 


- 

- 


- 


12 


11 

0 

- 

- 



12 

0 

Office Of The D C M ; Corp & HF 


278 


- 

45 


- 

4 

327 


191 

43 

- 

- 


(25) 

209 

118 

Office Of The D C M ; Treasury 


846 


- 

130 


(14) 

(46) 

916 


599 

71 

(12) 

- 


(74) 

585 

331 

Development Planning & Managr 

80 

659 


770 

5818 

- 

(241) 

(60) 

86 946 

6 

281 

1 278 

(230) 

- 


(18) 

7310 

79 635 

Economic Development & Facilit 

507 

829 

89 

359 

59 339 

46 632 

(246) 

83 

702 996 

58 

680 

19 732 

(229) 

- 


53 

78 236 

624 760 

City Enterprises 

3 

435 


- 

70 


(106) 

247 

3 646 

1 

739 

521 

(86) 

- 


56 

2 231 

1 415 

Business Support 

144 

098 

1 

576 

1 497 

(362) 

(578) 

(5) 

146 227 

42 

254 

5 396 

(20) 

0 


6 

47 637 

98 590 

Procurement 

13 

294 

1 

353 

474 

(1 353) 

(107) 

174 

13 835 

8 

646 

590 

(92) 

- 


12 

9 157 

4 678 

Water 

6 713 

859 

1 359 

582 

584 939 

252 573 

(1 169) 

21 608 

8 931 392 

1 116 

516 

172 212 

(876) 

913 


1 409 

1 290 175 

7 641 217 

Solid Waste 

1 041 

273 

162 

208 

242 593 

(102 531) 

(3 174) 

72 

1 340 440 

747 

002 

66 552 

1 398 

475 


22 

815 449 

524 992 

Engineering 

9 946 

385 

1 008 

529 

600 011 

368 889 

(850) 

(70 413) 

11 852 551 

1 996 

374 

342 491 

(757) 

- 


(3 410) 

2 334 697 

9 517 854 

Emergency Services 

286 

865 

8 

768 

11 910 

19 756 

(2 107) 

(430) 

324 763 

115 

068 

12 257 

(870) 

4 825 


798 

132 079 

192 684 

Parks, Recreation, Cemetries & 

1 762 

870 

38 

716 

44 642 

976 

(2 037) 

2 542 

1 847 709 

606 

133 

59 903 

(1 694) 

3 635 

(314) 

955 

668 619 

1 179 091 

Governance 

146 

909 

56 

514 

56 455 

(51 710) 

(82) 

2 

208 088 

49 

674 

6 692 

(74) 

- 


(24) 

56 269 

151 820 

Communications 

2 

860 


- 

225 


(261) 


2 824 

1 

512 

356 

(236) 

- 


(0) 

1 631 

1 193 

Regional Centres 

108 

459 


192 

2 191 

1 036 

(1) 

155 

112 032 

35 

016 

3 062 

(1) 

- 


110 

38 186 

73 846 

Human Resources 

14 

084 


- 

1 633 

1 847 

(683) 

961 

17 842 

9 

352 

1 334 

(651) 

- 


269 

10 304 

7 538 

Management Services & Org De 


855 


- 

74 


(27) 

144 

1 046 


413 

118 

(22) 

- 


33 

542 

504 

Finance 

16 

629 


- 

368 


(368) 

51 

16 680 

12 

938 

613 

(333) 

11 


90 

13319 

3 361 

City Fleet 

972 

610 

26 

636 

74 025 

(18 515) 

(459) 

(114 073) 

940 225 

543 

185 

81 804 

(390) 

230 


(47 856) 

576 973 

363 252 

Ottice Of Audit & Perfomance Mt 

1 

483 


- 

99 


- 

264 

1 846 


770 

183 

- 

- 


82 

1 035 

811 

Information Technology 

621 

586 


- 

46 424 


(337) 

(10 371) 

657 303 

406 

402 

75 211 

(241) 

0 


(6 145) 

475 228 

182 075 

Ethekwini Transport Authority 

856 

100 

132 

798 

75 713 

220 196 

(567) 

164 175 

1 448 415 

258 

262 

41 578 

(202) 

- 


51 455 

351 093 

1 097 323 

Occupational Health & Safety 

3 

525 


- 

164 

454 

(94) 

137 

4 185 

1 

982 

416 

(87) 

- 


32 

2 343 

1 841 

ABMS 

7 

235 

38 

098 

39 803 

(37 997) 

(21) 

15 

47132 

2 

407 

1 415 

(21) 

- 


(72) 

3 729 

43 403 

Durban Energy Office 

52 

367 


226 

292 

(226) 

(2) 

10 

52 666 

2 

595 

2 725 

(1) 

- 


(394) 

4 925 

47 741 

Durban Transport 

711 

353 


- 

251 


(30) 

(1 823) 

709 751 

282 

026 

74 144 

(26) 

- 


(1 553) 

354 591 

355 160 

Ottice Of The D C M ; Health & S 

7 

146 


- 

57 


- 

59 

7 262 

2 

231 

569 

- 

- 


23 

2 823 

4 439 

Income 

31 

816 


38 

6 041 

430 

(1 795) 

952 

37 483 

21 

693 

2 191 

(1 580) 

1 


261 

22 566 

14917 

Finance and Major Projects 


996 


- 

29 


(0) 

40 

1 065 


625 

120 

(0) 

0 


(0) 

745 

320 

Int Control and Busines Systems 

187 

306 

3 

555 

4 290 

(2 987) 

(355) 

(98) 

191 711 

53 

573 

7126 

(324) 

- 


330 

60 705 

131 006 

SDB 

11 

887 


- 

- 


- 

(1) 

11 886 

1 

636 

281 

- 

- 


17 

1 934 

9 952 

ABM INK 

26 

662 


- 

100 


(0) 


26 762 

6 

918 

1 453 

(0) 

3 



8 374 

18 388 

Performance Management 


752 


- 

185 


(35) 

122 

1 024 


398 

121 

(28) 

- 


66 

557 

467 

Risk Management 

4 

937 


- 

366 

521 

- 

(20) 

5 805 

4 

838 

1 

- 

- 



4 839 

966 

Moses Mabhida Stadium 

3 335 

406 


- 

8 339 


- 


3 343 746 

409 

763 

112 886 

- 

- 



522 649 

2 821 097 

Electricity Service 

6 625 

353 

445 

404 

465 799 

58 466 

(9 401) 


7 585 621 

2 267 

250 

239 675 

(9 227) 

1 396 



2 499 093 

5 086 528 

Total 

1 40 768 194 1 

1 4 509 095 1 

2 951 655 

1 111 176 

(28 167) 

(13 725) 


1 10 608 588 1 

1 613 564 

(19 417) 

11 815 

(314) 

(500) 



















106 

































456 


eThekwini Municipality and its Municipal Entities 

APPENDIX B: GROUP : SEGMENTAL STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2014 


2013 

2013 

2013 


2014 

2014 

2014 

Actual 

Actual 

Surplus/ 


Actual 

Actual 

Surplus/ 

Income 

Expenditure 

(Deficit) 


Income 

Expenditure 

(Deficit) 

R’QOQ 

R’QOQ 

R’QOQ 


R’OOO 

R'OOO 

R’OOO 


34 228 

284 808 

(250 580) 

Executive & Council 

32 951 

352 542 

(319 591) 

8 420 232 

2 512 771 

5 907 461 

Finance & Admin 

9 832 390 

3 291 365 

6 541 025 

247 121 

716 958 

(469 837) 

Planning & Development 

245 918 

765 885 

(519 967) 

74189 

337 867 

(263 678) 

Health 

98 288 

380 569 

(282 281) 

75 476 

639 932 

(564 456) 

Community & Social Services 

64 971 

705 187 

(640 216) 

306 528 

724 113 

(417 585) 

Housing 

264 224 

1 582 146 

(1 317 922) 

134 331 

1 176 902 

(1 042 571) 

Public Safety 

266 618 

1 404 571 

(1 137 953) 

98417 

1 128 651 

(1 030 234) 

Sport & Recreation 

92 469 

1 184 602 

(1 092 133) 

2 054 

129 426 

(127 372) 

Environmental Protection 

3 224 

145 024 

(141 800) 

2 445 964 

2 221 571 

224 393 

Waste Management 

2 839 819 

2 409 725 

430 094 

1 079 523 

1 784 355 

(704 832) 

Road Transport 

1 286 595 

2 132 315 

(845 720) 

3 526 936 

3 564 011 

(37 075) 

Water 

4 068 712 

4 157 831 

(89119) 

10 200 547 

8 792 591 

1 407 956 

Electricity 

10 554 315 

9 034 999 

1 519316 

88 232 

164 539 

(76 307) 

Other 

83 371 

183 342 

(99 971) 

171 100 

198 820 

(27 720) 

Durban Marine Theme Park (Pty)Ltd 

183 926 

212 449 

(28 523) 

165 959 

160 665 

5 294 

ICC Durban (Pty)Ltd 

163 056 

167 859 

(4 803) 

5 639 

3 485 

2154 

Ethekwini Transport Authority 

6195 

4710 

1485 

3 349 

2118 

1231 

Effingham/Link Road Joint Venture 

21 477 

6 394 

15 083 

27 079 825 

24 543 583 

2 536 242 

Sub Total 

30 108 519 

28121 515 

1 987 004 


1 (2 261 582) 

(2 261 582) 

0 

Less Inter-Dep charges 

(2 487 740) 

(2 487 740) 



1 24 818 243 

22 282 001 

2 536 242 

Total 

27 620 779 

25 633 775 

1 987 004 1 

L. 1 


107 






457 


eThekwini Municipality and its Municipal Entities 

APPENDIX B: ETHEKWINI MUNICIPALITY : SEGMENTAL STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2014 


2013 

Actual 

Income 

2013 

Actual 

Expenditure 

2013 

Surplus/ 

(Deficit) 


2014 

Actual 

Income 

2014 

Actual 

Expenditure 

2014 

Surplus/ 

(Deficit) 

R'OOO 

R'OOO 

R'OOO 


R'OOO 

R'OOO 

R'OOO 









34 228 

284 808 

(250 580) 

Executive & Council 

32 951 

352 542 

(319 591) 

8 408 624 

2 546 802 

5 861 822 

Finances Admin 

10 044 040 

3 291 364 

6 752 676 

247 121 

716 958 

(469 837) 

Planning & Development 

245 918 

765 885 

(519 967) 

74189 

337 867 

(263 678) 

Health 

98 288 

380 569 

(282 281) 

75 476 

639 932 

(564 456) 

Community & Social Services 

64 971 

705 187 

(640 216) 

306 528 

724 113 

(417 585) 

Housing 

264 224 

1 582 146 

(1 317 922) 

134 331 

1 176 902 

(1 042 571) 

Public Safety 

266 618 

1 404 571 

(1 137 953) 

98 417 

1 128 651 

(1 030 234) 

Sport & Recreation 

92 469 

1 184 602 

(1 092 133) 

2 054 

129 426 

(127 372) 

Environmental Protection 

3 224 

145 024 

(141 800) 

2 445 964 

2 221 571 

224 393 

Waste Management 

2 839 819 

2 409 725 

430 094 

1 079 523 

1 784 355 

(704 832) 

Road Transport 

1 286 595 

2 132 315 

(845 720) 

3 526 936 

3 564 011 

(37 075) 

Water 

4 068 712 

4 157 831 

(89119) 

10 200 547 

8 792 591 

1 407 956 

Electricity 

10 554 315 

9 034 999 

1 519316 

88 232 

164 539 

(76 307) 

Other 

83 371 

183 342 

(99 971) 


26 722170 

24 212 526 

2 509 644 

Sub Total 

29 945 515 

27 730 102 

2 215 413 








1 231 


1 231 

Share of Income from Joint 







Venture 

15 083 


15 083 

(2 261 582) 

(2 261 582) 

0 

Less Inter-Dep charges 

(2 487 740) 

(2 487 740) 

0 


I 24 461 819 

21 950 944 

2 510 875 

Total 

27 472 858 

25 242 362 

2 230 496 1 

1_ 1 


108 







eThekwini Municipality 

Annual Financial Statements for the year ended 30 June 2014 
Figures in Rand thousand 


458 


APPENDIX C : DISCLOSURE OF GRANTS AND SUBSIDIES IN TERMS OF SECTION 123 MFMA,56 OF 2003 


NAME OF GRANT 

NAME OF ORGAN OF STATE OR 
MUNICIPAL ENTITY 

QUARTELY RECEIPTS 

QUARTELY EXPENDITURE 

GRANTS AND SUBSIDIES DEUYED/ WITHHELD 


REASON FOR DELAY 
OF FUNDS 

DID YOUR MUNICIPALITY 
COMPLY WITH THE GRANT 
CONDITIONS IN TERMS OF 
GRANT 

REASON FOR NON 
COMPLIANCE 



Sept 

Dec 

Mar 

Jun 

TOTAL 

Sept 

Dec 

Mar 

Jun 

TOTAL 

Sept 

Dec 

Mar 

Jun 

TOTAL 


Yes/No 




R'OOO 

R'OOO 

R'OOO 

R'OOO 


R'OOO 


R'OOO 

R'OOO 


R'OOO 

R'OOO 

R'OOO 

R'OOO 





Financial Management Grant 

National Treasury 

1 250 




1250 

1250 




1250 







Yes 

N/A 

Integrated Cities Development Grant 

National Treasury 

4 770 

4 769 



9 539 



556 

8 983 

9 539 







Yes 

N/A 

Urban Settlements Grant 

Human Sefflements 

158100 

711450 

711 450 


1 580 999 

231 295 

524 104 

251 893 

573 707 

1 580 999 







Yes 

N/A 

Equitable Share/Subsidy 

National Treasury 

779 086 

623 235 

467 485 


1 869 806 

779 086 

623 235 

467 485 


1 869 806 







Yes 

N/A 

SRSA 

National Treasury 





0 





0 








N/A 

Infrastructure Skills Develoment Grant 

National Treasury 

13 000 


5 500 


18 500 

2 006 

11 220 

2 343 

2 965 

18 534 







Yes 

N/A 

PTIG 

Department of Transport - National 

150 000 


357 366 


507 366 

19 543 

38414 

88 703 

138 638 

285 298 


200 000 



200 000 

Low expenditure 

Yes 

N/A 

PTNOG 

Department of Transport - National 

20 000 

20 000 

31 395 


71 395 

13319 

20 305 

32 757 

5 014 

71 395 









Vuna Awards 

National Treasury 






36 



1 000 

1036 







Yes 

N/A 

National Economic Development 

Department of Economio Development 





0 





0 








N/A 

Neghbourtiood Development Grant 

National Treasury 

3 555 




3 555 

604 

1490 

1 216 

1459 

4 769 






Roll over not approved 

Yes 

N/A 

Expanded Public Works Programme 

Department of Public Works 

18 952 

14 215 

14214 


47 381 

5 449 

11 960 

22 218 

20120 

59 747 







Yes 

N/A 

ESKOM 

Department of Minerals and Energy 


601 



601 












Yes 

N/A 

Demand Side Management Grant 

Department of Minerals and Energy 

422 

14 578 



15 000 



470 

222 

692 







Yes 

N/A 

Trade and Investment 

Department of Trade and Investments 





0 





0 







Yes 

N/A 

National Electrification Programme 

Department of Minerals and Energy 

20 000 




20 000 

13 909 

6 091 



20 000 







Yes 

N/A 

Government Health Subsidy 

KZN Department of Health 



97 088 


97 088 

24 272 

24 272 

24 272 

24 272 

97 088 







Yes 

N/A 

Department of Arts and Culture 

KZN Department of Arts and Culture 

154 980 


3 865 

0 

158 845 

866 


2 081 

8 337 

13 084 







Yes 

N/A 

Department of Environmental Affairs 

Department of Environmental Affairs 



5 256 

2 994 

8 250 

4197 

923 

1034 

1 281 

7 435 







Yes 

N/A 

Grant Accreditation 

Department of Human Settlements 


7316 

7 507 


14823 




939 

939 







Yes 

N/A 

Department of Local Government & Traditional Affairs 

KZN COGTA 


4 000 



4 000 


3 850 


2218 

6 068 







Yes 

N/A 

Department of Human Settlements 

Department of Human Settlements 


1 105 

55 963 

28 326 

85 394 


18 986 

2 044 

129419 

150 449 







Yes 

N/A 

Special Grant : IGR 

KZN Department of Economic Development & 

Tourism 




0 





0 








N/A 

K2NPA Subsidy 

KZN Department of Transport 

1 215 

1 217 

1 389 

331 

4153 

1 191 

1 217 

1 054 

691 

4153 







Yes 

N/A 

Provincial Grants and Subsudles 

Provincial Government Departments 





0 





0 







Yes 

N/A 

NRF 

National Research foundation 





89 




78 

78 







Yes 

N/A 

Disaster Fund 

National Disaster Fund 







351 

192 

1 

543 









Municipal Transport Authority 

KZN Department of Transport 










0 








N/A 

Grand Total 


1 325 330 

1 402 486 

1 758 478 

31 740 

4 518 034 

1 097 023 

1 288 218 

898 318 

919 344 

4 202 902 

0 

200 000 

0 

0 

200 000 
























109 







460 


APPENDIX D : ETHEKWINI MUNICIPALITY : MOSES MABHIDA STADIUM - DETAILED STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2014 


2014 
R'OOO 

REVENUE 


Rental of facilities and equipment 

64 303 

Rent Non Bowl Events 

11 217 

Rent Bowl Events 

36 900 

Rent Shops 

11 343 

Suites & Business Clubs 

4161 

Rent Parking Bays 

682 

Interest earned - external investments 

0 

Interest Received 

I o| 

Government grants and subsidies (Capital) 

0 

Fifa World Cup Stadium 

I 

Other income 

13 739 

Adventure Walk 

51 

Donations PPE 

0 

Mobile Kiosks 

0 

People’s Park 

6 520 

Reversal of loss : PPE 

0 

Skycar 

4 777 

Sponsorships 

1 805 

Stadium Tours 

516 

Sundry Income 

70 

Total operating revenue 

78 042 

EXPENDITURE 


Bad Debts 

228 

Bad Debts Provision 

1 228 1 

Depreciation - Property, Plant and Equipment 

113 129 

Depreciation 

1 1 13 129 1 

Contracted Services 


Management Fees 


Impairments 


Impairments - Property Plant & Equipment 




General expenses 

68 224 

Electricity 

13 391 

Fuel & Oil ; Vehicles 

1 50 

Hire of Temporary Seats 


Refuse Removal 

954 

Stadium Operational Costs 

50 368 

Hire Of City Fleet 

232 

Water 

3 129 

Loss on disposal of property, plant and equipment 


Loss on Disposal of Assets 


Total operating expenditure 

181 581 

DEFICIT FOR THE YEAR 

-103 539 
























461 


VOLUME THREE 


Durban Marine Theme Park (Pty) Ltd. 

Annual Report IncL Annual Financial 
Statements 2013 2014 



462 


Durban Marine Theme Park SOC Limited (RF) 
Trading as 

uShakaMarine World 


ANNUAL REPORT FOR THE PERIOD 30 JUNE 2014 


A. Executive summary, including Performance Report 

B. Sustainability and Human Resource Report 

C. Annual Financial Statements 


(Ethekwini Audit Committee report will be included in AGM version) 



Durban Marine Thenr#P’ark SOC Limited (RF) 

Trading as 

uShaka Marine World 
Annual Report 

A EXECUTIVE SUMMARY 

1 BUSINESS OVERVIEW 

Durban Marine Theme Park (Pty) Ltd, trading as uShaka Marine World, is 
about family entertainment and strives to deliver an unmatched, fun 
experience to all its visitors. It forms an integral part of the overall Durban 
beachfront offering and in so doing, continues to be a major tourist attraction 
for both national and international visitors alike. uShaka remains one of the 
most important attractions to the Durban metro and is the anchor for Durban 
Point. The development of a potential shopping complex, next to Parking B, 
will be a draw card to the park. It consistently ranks as one of the major draw 
cards for people visiting Durban and for the 7• **^ year running, the park has 
been ranked “the coolest, fun destination” in KZN by The Sunday Times 
Generation Next Survey. uShaka Marine World contributes to the longevity 
of the Durban metro by driving economic development and education, in 
addition to being a focal point for recreational and entertainment activities. 


uShaka Marine World’s vision is: 

“To create awareness of conservation, through fun, knowledge and 
adventure” 

The culture of the company revolves around three core areas: 

> Consistently high standards 

> Accountability for actions 

> Passionate about service delivery 


Covering 16 hectares, uShaka Marine World is the largest marine theme 
park in Africa and consists of four distinct divisions: 

• Wet ‘n Wild 

This park consists of water- based slides and rides and is a definite 
attraction for the aquatic enthusiast. The park features exciting slides, the 
highest slide in Africa, a 450-metre Duzi Adventure River, some heated 
slides or rides with heated water, as well as souvenir stores and 
restaurants. Wet ‘n Wild is about ensuring a fun day out in the sun for 
families. This area is the main attraction during peak seasons - 
especially in summer and we usually experience capacity constraints 
during this period. It is mainly due to this reason that only “combo” tickets 
are sold, as this helps with crowd dispersion into less congested areas. 


1 



uShaka f^^me World 
Annual Report 


• Sea World 

The jewel in the crown of uShaka Marine World, is Sea World, which 
boasts not only the largest aquarium in the southern hemisphere, but 
also a 1 200 seated dolphin stadium, a 450 seated seal stadium and the 
“Phantom Ship” comprising a number of restaurants and bars. The 
“Wreck” aquarium is an underground aquarium featuring 5 themed 
shipwrecks and approximately 10 000 creatures. SeaWorld plays a major 
role in positioning the park as an exciting destination with a conservation 
ethos. 

• Village Walk 

Village Walk is a 10 000 sqm outdoor Shopping Centre, anchored by the 
theme park offering and a variety of restaurants including Moyos, Piatto, 
Cargo Hold, Centre Court, Ocean basket and a number of fast food 
outlets. There is a selection of unique craft and fashion outlets that give it 
a sense of identity. The Village Walk Craft Market and the inclusion of 
Dangerous Creatures further distinguish the destination. 

• uShaka Kids World 

uShaka Kids World has been designed with kids under the age of 12 in 
mind; a place where children have the freedom to truly play! Sandwiched 
between Sea World and the Village Walk, uShaka Kids World is a haven 
for young kids and was designed with a host of activities and interactive 
areas with young kids in mind. Boasting Africa’s biggest jungle gym, it 
also has Crabby Beach (giant sandpit), Polly’s Paint Pen (painting 
paradise), and Cast-Aways (show time stage area, with interactive 
mascot shows). The much-anticipated “wet area” called “Splish Splash 
Sprinkler Zone” came on line in December 201 1 and remains a popular 
activity. 


2 FINANCIAL OVERVIEW 

DMTP did not achieved budgeted revenues and financial goals for the year 
however has exceeded EBITDA performance by R3m. Some of the key 
drivers of this success on cost savings has been only replacing posts when 
the business required those heads, i.e. before peak December season. A 
change in culture of expense spending in that only what was needed to 
provide the guest experience was spent and all new initiatives were put on 
hold. 

uShaka had a satisfactory 2013/14 on the footfall front, with total admissions 
of 1 380 976 which represents a decrease of 8% over the previous year. 
This is the first time in 7 years, since 2007, that uShaka has reported a 
decrease in admissions numbers. This can be attributed to mainly macro- 
economic factors resulting from the country’s poor economic results as a 
whole as reported by the Ministry of Finance. Over the current financial year, 
the country saw a downgrade in its credit rating from a BBB status to a BBB 


2 



uShaka World 

Annual Report 

minus status which, according to the ratings agency Standard’s and Poor’s 
is just a notch from junk bond status. This has had a negative effect on 
disposable income. uShaka has also not had any major additions to the park 
in the form of rides or attractions. This has had a negative effect on 
visitation, as guests have not been given a real reason to visit uShaka due to 
a new, addition. On the positive side our BEE scorecard improved from a 
level 6 to a level 4 in this financial year. 

Total revenue for the financial year came in at R 183.8 mil, with Ticketing 
comprising the bulk at 49%. Other contributors were Food and Beverage: 
23%, Rentals from Village Walk; 15% and Merchandising: 4%. Events, 
parking, photographic revenues, sponsorship and sundry revenue made up 
the remaining 9%. Some of the revenue generators posted strong results, 
with Parking grew by 23% and photographic revenues grew by 339 % over 
the previous financial year, this is due to a new service provider coming on 
board 01 December 2013, and opening a new revenue centre in the 
aquarium which has proven popular with guests. The net result of this, 
together with substantial cost savings (mainly on the salaries and utilities 
front), resulted in an EBITDA of R 12.4 mil. 


3 OPERATIONAL OVERVIEW 

Focusing on maintaining and improving footfall is key as this is the major 
contributor to revenue- ticketing was 52% of the revenue in 2013. The 
challenge is to maintain and increase footfall per annum while maintaining a 
balance with the pricing strategy. 

The DMTP board has endorsed a strategy that is both offensive (footfall 
enhancing) and defensive (maintenance orientated, to ensure a balanced 
approach resulting in: 

• the park running at optimal efficiency; 

• maintaining or raising operational standards; and 

• complying with all legislation (including any audit/ risk findings). 

The various operating divisions of the park have driven this strategy actively 
as it enhances both footfall and revenue. These objectives cut across both 
ticketing revenue and the other revenue streams that contribute towards total 
revenue. 

• Repeat visitation 

The annual pass base continued to plateau in the 2013/ 14 financial 
year, which leads to a decision to discontinue a new pass that was 
introduced in the previous year called the “fun pass”. Sales efforts 
were concentrated on the platinum pass with new offerings. The new 
pricing model was introduced in order to maximise on new sales and 
increase the renewal rate. The Kids World Pass was reviewed and 
was re-launched in the 2013/14 financial year. This pass however is 
not popular in the market place. Apart from the focus on the role of 


3 



uShaka f^^me World 
Annual Report 

passes, various other repeat visitation initiatives were introduced and 
will be done in the coming financial year. These include “bounce back” 
vouchers aimed at giving a guest a discount on their next visit. 

• Kids market 

The kids market was revised in the 2013/ 14 financial year to be only 
kids under 12 and not the teen market. As in the past, uShaka Kids 
World provided the thrust into this young segment, augmented by an 
improved birthday offering which proved to be very popular. Events 
such as Halloween, the Largest Easter Egg Hunt in Africa were used 
mainly as a support to this market. Merchandising also played a major 
role in growing this sector by increasing their promotion of the Ocean 
Buddies store in Village Walk built around the concept of “build a 
bear”. 

• Merchandising 

The Department has secured an increase in sales over the last year 
despite the economic climate resulting in a drop in footfall. This has 
been achieved through an increase in the per cap spend. Without any 
major planned initiatives in the new year, this will require meticulous 
cost of controls- Cost of Sales to be held below 47% and labour is to 
be scheduled and managed judiciously. This will be combined with the 
management of stock levels (particularly over valley periods), and 
careful care of stock to avoid loss through damage and theft. 

• Food and Beverage 

The food and beverage department had a challenging year compared 
to the past year with is related to the footfall performance for outlets 
like Wahooz and Fast Food and Vending. 

The Wahooz brand went through a challenging period with its team 
experiencing leadership issues. This has since been resolved at the end of 
May 2014, and the future could not look brighter. Financially Wahooz 
exceeded the targeted Net Profit percentage of 16% by 2%. The option of 
exposing the promenade portion to a slightly more aggressive marketing 
style has helped; this was done at the risk of lowering the prices of a certain 
food and beverage items which in the turn affected the cost of sales 
performance however the end result was achieved. This was bringing in 
more numbers in to the promenade side. The concept to turn Wahooz into a 
central music destination in the promenade area for music lovers especially 
live is still being explored further and the weekends have picked up 
significantly. 

Cargo Hold increased the revenues from tour groups by 98% from last year. 
The fine dining industry has had a difficult year. Financially Ca