PRESENTATION DCOG STRATEGIC PLANNING SESSION STATUS UPDATE LOCAL

PRESENTATION DCOG: STRATEGIC PLANNING SESSION STATUS UPDATE: LOCAL GOVERNMENT TRANSITION PROCESSES 12 JULY 2016 1

21 DAYS TO THE LGE 2

OUTLINE OF THE PRESENTATION 1. BOUNDARY REDETERMINATIONS FINALISED BY THE MDB IN 2013 AND 2015 2. ROLE OF THE PROVINCES 3. STATUS UPDATE: GENERAL OVERVIEW Gauteng (1) o Kwa. Zulu-Natal (7) o Mpumalanga (1) o Free State (1) o North West (1) o Northern Cape (1) o Limpopo o Eastern Cape o (4) 4. STATUS UPDATE: PER DEM (20/1) – Annexure “A” 5. SUPPORT AVAILABLE TO THE CMCs (PROVINCIAL AND MUNICIPAL) 6. DRAFTING OF SECTION 12 NOTICES 7. RECOMMENDATIONS 3

1. BOUNDARY REDETERMINATIONS FINALISED BY THE MDB (2013 AND 2015) 4

BOUNDARY REDETERMINATIONS (2013) - MINOR q During 2013, the MDB confirmed the outer boundaries of municipalities. q 157 cases were published for comments; 10, 000 objections. PROVINCE NO. OF REDETERMINATIONS Eastern Cape 22 Free State 6 Gauteng 1 Kwa. Zulu-Natal Mpumalanga Limpopo 142 minor redeterminations in total. 28 2 7 Northern Cape 21 Western Cape 35 North West 20 5

TOTAL NUMBER OF MUNICIPALITES WITH EFFECT FROM THE 2016 LG ELECTIONS PROVINCE EC FS GT KZN LIM MP NC NW WC TOTAL CAT A 2 1 3 1 0 0 1 8 CAT B 31 (-6) 18 (-1) 6 (-1) 43 (-7) 22 (-3) 17 (-1) 26 (-1) 18 (-1) 24 205 (-21) CAT C 6 4 2 10 5 3 5 44 TOTAL 39 23 11 54 27 20 31 22 30 257 (-21) 6

2. ROLE OF THE PROVINCES 7

ROLE OF THE PROVINCES (OVERSEE PREPARATIONS FOR THE ELECTIONS) q Section 12 of the Structures Act: MECs to establish municipalities The MEC for local government in a province must establish a municipality in each municipal area which the MDB demarcates in the province (by Notice in the Provincial Gazette). q Section 14(5) of the Structures Act: Regulation of effects of establishment of municipality on existing municipalities: measures to facilitate the disestablishment of an existing municipality and the establishment of a new municipality. The MEC must consult the existing municipality before publishing the notice. q Provides for various transformation structures to process issues: § Municipal Technical Change Management Committee § Municipal Political Change Management Committee § Provincial Transformation Committee 8

3. STATUS UPDATE: GENERAL OVERVIEW 9

KEY STATUS OF IMPLEMENTATION OF ACTIVITIES 0 TO 24% 25% TO 49% 50% TO 74% 75% TO 100% COLOUR CODES INDICATING THE PROGRESS MADE IN EACH OF THE KRAs (0 TO 100%) KRAs LEGAL MATTERS ABBREV. LM HUMAN RESOURCES FINANCE TECHNICAL COMMUNI CATIONS INTEGRATED DEVELOPMENT PLANS INSTITUTIONAL MATTERS HRM FIN TECH COM IDP INST q Status update for each DEM is based on reports submitted by the Provinces, and provincial / district engagements attended by the DCo. G. 10

STATUS UPDATE: GENERAL OVERVIEW (2013) 1. GAUTENG DEM / CMC: LM HR FIN. TECH. COM. IDP INSTI. COM. IDP INST. 1. RANDFONTEIN / WESTONARIA (West Rand DM) 2. KWAZULU-NATAL DEM / CMC: 2. VULAMEHLO AND UMDONI (2) (e. Thekwini). 3. HLABISA AND THE BIG 5 FALSE BAY (2) (u. Mkhanyakude DM). 4. UMTSHEZI AND IMBABAZANE (2) (u. Thukela DM). 5. EZINQOLENI AND HIBISCUS COAST (2) (Ugu DM). 6. EMNAMBITHI/LADYSMITH AND INDAKA (2) (u. Thukela DM). 7. KWA SANI AND INGWE (2) (Harry Gwala DM). 8. NTAMBANANA, MTHONJANENI AND UMHLATHUZE (3) (u. Thungulu DM). LM HR FIN. TECH.

STATUS UPDATE: GENERAL OVERVIEW (2015) 1. KWAZULU-NATAL DEM / CMC: 1. MOOI MPOFANA AND UMVOTI (2) (u. Mgungundlovu DM) – minor redetermination. LM HR N/A FIN. N/A 2. MPUMALANGA 2. MBOMBELA AND UMJINDI (2) (Ehlanzeni DM). 3. FREE STATE 3. MANGAUNG AND NALEDI (2) (Xhariep DM). 4. NORTH WEST 4. VENTERSDORP AND TLOKWE (2) (Dr Kenneth Kaunda DM). 5. NORTHERN CAPE 5. MIER AND //KHARA HAIS (2) (ZF Mgcawu DM). TECH. N/A COMM N/A IDP N/A INST. N/A

STATUS UPDATE: GENERAL OVERVIEW 6. STATUS UPDATE: LIMPOPO DEM / CMC: LM HR FIN. TECH. COM. 6. AGANANG, BLOUBERG, MOLEMOLLE AND POLOKWANE (4) (Capricorn). 7. FETAKGOMO AND GREATER TUBATSE (2) (Greater Sekhukhune DM). 8. MODIMOLLE AND MOOKGOPONG (2) (Waterberg DM) 9. MUTALE, THULAMELA, MAKADO AND MUSINA (4) (Vhembe DM). 7. STATUS UPDTATE: EASTERN CAPE 10. GARIEP AND MALETSWAI (2) (Joe Gqabi DM). 11. NXUBA AND NKONKOBE (2) (Amathole DM). 12. INKWANCA, TSOLWANA AND LUKHANJI (3) (Chris Hani DM). 13. IKWEZI, BAVIAANS AND CAMDEBOO (3) (Sarah Baartman DM). IDP INST.

4. STATUS UPDATE: PER DEM (REFER TO ANNEXURE “A”) (20 – FROM 2013 AND 2015) 14

STATUS UPDATE PER DEM (20) q Detailed updates, per DEM, are attached at annexure A. q These updates are based on reports that have been submitted by the Provinces to the MDTC that was held on 28 June 2016. q It is noted that progress has been made by all provinces in all of the identified key focus areas. q However, more needs to be done by the Eastern Cape and Limpopo Provinces to fast-track processes to reach finality. q Some challenges that have been observed / reported: q No dedicated Transformation Manager at Province; q Continuous changing of Chairperson/s at the Province; q CMCs are not meeting regularly (Amathole); q Provinces are unable to timeously submit reports and business plans – lack of cooperation from the CMCs; and q Lack of communication from Provinces (no acknowledgement, feedback / responses). 15

5. SUPPORT AVAILABLE TO THE CMCs 16

SUPPORT AVAILABLE TO THE CMCs q Provinces were requested to provide their schedule of CMC meetings as far back as October 2015 – not all provinces have done so. q DCo. G: q The Provincial B 2 B Coordinators are available to leverage relevant expertise / capacity from the national department, and from the other stakeholders. q NATIONAL TREASURY: q Has issued circulars 78 and 79 of the MFMA; and q MFIP II Advisors available in all the affected municipalities in Eastern Cape and Limpopo. q SALGA: q Participating in the CMCs (local and provincial). q SPECIFIC SUPPORT TO EASTERN CAPE AND LIMPOPO: q The DCo. G convened workshops in EC and Limpopo on 24/25 and 30/31 May 2016, respectively, in each of the provinces. q Dedicated focus was given to: q HR and Finance related matters; q Drafting of Section 12 Notices; and q First meeting of the Council (post the elections). q Follow-up engagements will be held with the two provinces over the next two weeks. 17

6. DRAFTING OF SECTION 12 NOTICES 18

DRAFTING OF SECTION 12 NOTICES (1/3) q The Notice must set out: “(a) the category of municipality that is established; (b) the type of municipality that is established; (c) the boundaries of the municipal area; (d) the name of the municipality; (d. A) in the case of a metropolitan or local municipality, the number of wards in the municipality; and (e) the number of councillors as determined in terms of section 20; (e. A) in the case of a district municipality, the number of councillors, determined in terms of section 23, to(i) proportionally represent parties; (ii) be appointed by each of the local councils within the district municipality to directly represent each local municipality; and (iii) proportionally represent parties from each district management area within that district municipality; (f) which councillors of the municipality (if any) may be designated as full-time in terms of section 18 (4); (h) any provisions of this Act from which the municipality has been exempted in terms of section 91; and 19 (i) any other relevant detail. ”

DRAFTING OF SECTION 12 NOTICES (2/3) q The MEC must, to the Provincial SALGA and the existing municipalities that are affected by the proposed establishment, : q Give written notice; q Consult; and q After consultation, publish particulars of the proposed Notice for public comment. q When boundaries are redetermined, the MEC must repeal, amend or replace the relevant section 12 notice. q 142 minor redeterminations across the country, affecting 20 all provinces (from 1 in GP to 35 in WC).

DRAFTING OF SECTION 12 NOTICES (3/3) PROVINCE PROGRESS Gauteng Section 12 Notice published for public comments. Kwa. Zulu-Natal Section 12 Notice published for public comments. Mpumalanga Section 12 Notice published for public comments. Free State Section 12 Notice published for public comments. North West Section 12 Notice published for public comments. Northern Cape Section 12 Notice published for public comments. Limpopo Section 12 Notice published for public comments. Eastern Cape Section 12 Notice published for public comments.

7. RECOMMENDATIONS 22

RECOMMENDATIONS q It is recommended that: § The meeting notes the contents of the presentation; and § The various line function units and the B 2 B colleagues continue to support the affected municipalities and provinces with the finalisation of the various transition matters (also provide feedback). 23

ANNEXURE A STATUS UPDATE: PER DEM (20) 24

1. GAUTENG: DEM: RANDFONTEIN /WESTONARIA (2) [West Rand DM]. STATUS UPDATE: PER DEM LEGAL HUMAN RESOURCES FINANCE • In terms of the Section 12 Notice all By-Laws of the affected Municipalities remain in force until repealed by new Municipality. • All by-laws were evaluated and priority areas identified for tabling to the new council. • Pro-forma by-laws for the priority areas are currently being reviewed and aligned for the new Rand West City Local municipality - to be tabled to the new council post the LGE. • Policies for the existing municipalities have been reviewed for HR and Finance only. • Other policies have been reviewed and prepared for the merged municipality. • Draft System of Delegations and standing rules of order are finalised. • Development of PAIA manual for the new municipality has been delayed and will be finalised once structure is finalised. • A draft Separation of Powers model was prepared. It will be implemented in a phased approach due to the cost of implementing the model. • Developing a contingency liability register for possible claims against the affected municipalities. • File plans for the two affected municipalities were reviewed and new file plan compiled. • Provincial Archives supported new File Plan. • The compilation of a contingency liability register for claims against the affected municipalities finalised and updated on continuous basis. • The existing staff component for Randfontein completed. • Last organisational structure approved on the 28 th October 2015. The organogram for the new municipality was developed and presented to the LLF. The new organisational structure will presented to council following the LGE 2016. • Both municipalities use PAYDAY. • The formal job-evaluation was conducted and the final outcome results are available on the TASK system. Job Descriptions have been reviewed for all employees in the two local municipalities. • The analysis of the salary costs after placement, budget and other related costs is being undertaken by the HR work stream. The employee cost will increase by 7, 6%. • The placement and migration policy was finalised and presented to the Local Labour Forum. It will be presented to the new council following the local government elections 2016. • The conditions of service for both municipalities were reviewed. • A list of Section 56 managers for the existing municipalities has been finalised. • The new municipality will be graded at 4 (66. 66 points). • The valuation roll for the two municipalities was implemented on the 1 st July 2014 and will remain valid until the 30 th June 2018. • IT Platforms and relevant servers procured by Munsoft and is configured. The process of migration of data and the roll-out plan is underway. • Draft consolidated FAR completed. The FAR are to be updated with year-end adjustments carried out by separate municipalities. • Asset Register compiled. Verification and conditional assessments being conducted. • An analysis of grants received for specific projects was prepared and finalised in February 2016. • An analysis of loans and grants was concluded in March 2016. • The two municipalities will continue with differentiated tariffs during the 2016/17 financial year. • The draft Consolidated Budget and report completed and submitted. • Consolidated AFS is required in 2017. • Both municipalities uses Absa. Meeting with ABSA took place on the 10 th May 2016 account to be activated once final Notice has been issued by the MEC. • An analysis of loans in the two municipalities was concluded in April 2016. Consolidated borrowings amounts to R 17 million for the two entities and these are anticipated to be settled by 2018.

1. GAUTENG: DEM: RANDFONTEIN /WESTONARIA (2) [West Rand DM]. STATUS UPDATE: PER DEM TECHNICAL • COMMUNICATIONS IDP INSTITUTIONAL An analysis of projects per • A communication strategy was • The 2016/17 IDP • A joint council meeting ward has been prepared and will be revised to align process plan was confirmed that was included in the draft with new timelines. prepared and adopted Randfontein would be consolidated IDP. • It will be implemented by the individual head office for the Municipal Managers and supported municipalities. Randwest City Local by the Speaker. • The IDP for the two Municipality. municipalities were Consultative meetings, prepared and sent to led by the Speaker, council in March 2016. were held with • The consolidated IDP communities between has being drafted the 1 st and 30 th of following a joint strategic November 2015. planning workshop in • The Council Chambers April 2016. was identified as • The proposed vision, Randfontein. mission, objectives and outputs for the new municipality was presented at a joint council meeting in April 2016. • The Draft Rand West 2016/17 IDP was tabled in both RLM and WLM Councils in May 2016.

1. KZN: DEM: VULAMEHLO AND UMDONI (2) [e. Thekwini DM]. LEGAL HRM FIN TECH COMM. IDP • HR policies are under review. EThekwini policies would not be affected. • Vulamehlo HR policies are available and will be rationalized with those of Umdoni. Vulamehlo submitted the Budget related policies to Umdoni for rationalization. • The Umdoni and e. Thekwini record management systems will be used. • EThekwini and Umdoni contracts register available. • List of staff and Job Descriptions are available. • Council meeting held for the adoption of the Umdoni LM Revised organogram. • Management will commence with the placement process. • Draft Placement Policy has been developed. • Re-location costs of staff to be determined through the Placement process. • Proposal were made that Vulamehlo will join Umdoni and e. Thekwini with zero leave balances. • Tariff income and • The status quo • Municipal Umdoni's restructuring is on the Manager’s ffice Individual O under control both management and Mayor’s IDP municipalities ave and provision Office. h The (2016/2017) agreed on of electricity Municipality ses was dopted u a retaining their shall remain; an Annual By Council. current tariff i. e. Thekwini Events Calendar structures to be Municipality branding not consolidated and Eskom to applicable 2016/2017. provide Umdoni to retain • Budget process electricity. its current name has been finalized. and logo). • Umdoni approved Traditional its individual and leaders are consolidated invited to the 2016/2017 budgets CMC processes. • Vulamehlo Councillors were workshopped on the consolidated budget on 26 May 2016. • Both Umdoni and Vulamehlo do not have long term contracts. INST. Not applicable as both Umdoni and e. Thekwini will both be absorbing staff.

12. KZN: DEM BIG 5 FALSE BAY /HLABISA(2) [u. Mkhanyakude DM]. LEGAL HRM • Rationalized bylaws and policies have been adopted by both Councils (Po. E File comprising all bylaws and Council Resolution Certificates prepared). • Registry for the storage of municipal files and information was identified by the joint Council on the 09/06/2016 to be at Hlabisa LM. • No transfer of files has occurred as of yet. • All employee contracts have been listed (Personnel Files from both Municipalities) • List of all contracts, i. e. HR & Admin, Finance and Infrastructure Projects to be submitted before • The new organogram has been approved by the Political CMC and both Councils. • Job descriptions referenced to the organogram have been developed. • The Placement Policy has been approved by both Councils (Placement Policy and Council Resolution Certificates). • Placement cost still to be determined. • Staff placement is 99% complete. • Both unicipalities M have submitted salary budgets for staff members. That is reflecting in the Consolidated Budget. • Salary after placement will be done after the job evaluation process. FIN • Both municipalities are to prepare new valuations in July 2017. • Both municipalities agreed to continue using Pastel System and that has been approved by the Technical and Political CMC of the 25 th May 2016. • Billing system will be a component of the Pastel system. • IT Systems has been tabled to both LMs. • Asset register is being updated by both LMs. • Currently there are no long term loans by both LMs • The AFS for both LMs would be prepared in terms TECH COMM. IDP INST. Committed • Communicatio The • The combined Projects for n strategy was consolidated Councils of Big 5 both LMs for approved and IDP was False Bay and 2015/16 adopted by the adopted by Hlabisa resolved consolidated. PCMC. Big 5 False on the • Both Mayors Bay and 09/06/2016 that at the Hlabisa the Head office of combined IDP Municipalitie the new Roadshows n s on the municipality is o the 8 th 13 30/06/2016 Hlabisa at April 2016 at and it will Hlabisa Municipal Hlabisa and then be Offices. Big 5 presented to • The name of the presented the next new municipality their TCMC and is Big 5 Hlabisa committed PCMC. Municipality projects and which was budgets. adopted by the • Traditional Political CMC. Leaders, • The type of the Inkosi new municipality Mdletshe’s will be the representative Collective and Inkosi Executive Type Mdluli Municipality. attended the IDP road shows on the 8 th and 13 t h April 2016.

2. KZN: DEM / UMTSHEZI/IMBABAZANE (2) [u. Thukela DM)]. LEGAL HRM • The by-laws have been rationalized and presented to departmental Task Teams. Some tabled to TCMC and PCMC awaiting adoption by respective councils. • The by-laws and policies are aligned to B 2 B. • The list of Umtshezi and Imbabazane policies has been prepared and are at a draft stage. • Guideline and approval for implementation from Provincial Archives approval for the records management policy, procedure manual and file. • The list of contract held by both merging Municipality has been prepared. • The existing staff component has been prepared and forwarded to COGTA. • Drafting of new organogram for new municipality completed and presented to all merger structures now awaits Council adoption. • Job Evaluation and Re-location costs to be concluded after the approval of the Placement Policy and adoption of the organogram . Should be completed by 30 June 2016 (30 July). • Placement Policy Tabled at Joint Council Meeting on the 11 th May 2016 with some amendments. FIN • Both valuation roll expire on the 30 th June 2017. To be utilized until 30 th June 2018. (Notice 14 (5). • Assets registers of both merging Municipalities are GRAP complaint. • Consolidated list of loans and grants prepared. • Draft annual budget approved by respective councils (public participation processes in progress). • Umtshezi – FNB contract ends 2017 the KZN 237 will move to FNB - there after procurement process will unfold. TECH COMM. IDP INST. The • Communication The • Naming Awaiting priority list strategy is being Individual MEC’s approval is available. integrated service of the proposed Sector Central provider for name for the departmen communication SDF and KZN 237 Local ts has points identified Planning Municipality. been and utilized Scheme. The • The Head Office consulted. during naming individual will be at processes. IDP are in a ESTCOURT and • The milestone draft phase. satellite offices calendars in a Regarding are Loskop, form of detailed the merged Amangwe, GAANT chart organogram, Bhekuzulu, has been COGTA has Hlathikhulu, developed. approved Wembezi, • Traditional the Weenen and Leaders appointment Ntabamhlophe. participation. of the Go. GTA to task service Traditional provider. Affairs. Co. Gta Both to address with municipalitie the Traditional s have Leaders Council. adopted Draft IDPs. New Council to review in September.

2. KZN: DEM: EZINQOLENI / HIBISCUS COAST (2) [Ugu DM)]. LEGAL HRM • Labour related and budget policies were rationalized. • The policies of both municipalities are aligned with the B 2 B. • Combined file plan has been developed with the assistance of the KZN Archives, and Records Management Policy was amended for the new municipality with the assistance of the Provincial Archives. • All current series of files shall be closed and new ones opened on the first day of the new municipality. • Physical records have all been inspected by both municipalities and a plan has been formulated going forward. • Job Descriptions were developed and are ready to be evaluated (31 July 2016). • The organogram was adopted by both municipalities (Jan 2016). • The work-study was conducted and it informed the development of the new organogram. • Job Evaluation process is currently underway (31 Sept 2016). • Placement costs after placement calculated using the Hibiscus Coast Municipality, being the higher graded municipality. • Placement process done. Letters issued to all employees on 13 June 2016 and the objection FIN • Term of valuation rolls valid until 30 June 2017 for both municipalities. • The Valuer was appointed. The Roll is to be delivered on the 31 Jan 2017. • The new municipality will integrates with Munsoft (preferred financial system). • Systems Providers to assist with the consolidation of the IT systems. • Separate GRAP compliant Asset Registers are available, to be consolidated upon merger. • Grant Registers in place and are updated monthly. • The onsolidated C Budget will be tabled at Council TECH COMM. IDP INST. • As per the Contract Register and the Capital Commitm ent Schedules. • Ongoing engageme nts with provincial sector departme nts; e. g. Human Settlemen ts, DOE, DSR, etc. • Both HCM and Ezinqoleni have Communication Strategies in place. • District Communication Forum is the platform used. • Gantt Chart was developed to guide the change management process. • Mayors use the same message when addressing communities. • Separate Budget and IDP Roadshows were held and members of the community were informed about the merger. • Traditional leaders do participate in the process. HCM • The name of the Individu new municipality al IDP has been was approved and adopted gazetted (section by 12) as Ray Council Nkonyeni in May Municipality. 2016. • Head Office to be Ezinqole in Port Shepstone ni • The current Individu Hibiscus Coast al IDP to Municipality's to be be used as adopted Council Chamber by Council on 30 June 2016. Draft Consoli dated IDP to be tabled t a both Councils by 30 June 2016.

2. KZN: DEM: INDAKA / EMNAMBITHI/LADYSMITH (3) [u. Thukela DM]. LEGAL HRM • The by-laws have been rationalized. • Fire Brigade and Nuisance by laws are now at the Public Participation stage in both municipalities, whereof after 30 days public input will be considered by both Council for the eventual gazetting after the merger. • Policies have been rationalised and presented to all CMC structures. • National Archives is still being consulted regarding the File Plan. • List of contracts held by both municipalities has been prepared. • Completed ubject s to the regular updates as a result of resignations, new appointments etc. • The challenge experienced is that some employees were confusing the signing of the Job Descriptions with the Job Evaluation and Placement processes. Engagements are taking place in both LLF’s and the joint workshop is co-ordinated by Emnambithi/Ladys mith. • Organograms approved by Political CMC 0 n 6 June 2016 • The Work-Study process will be conducted after the merger has come into effect. • Placement Policy was adopted on 6 FIN • Rationalisation of Billing System - problem - Circular 80 specific to m. SCOA. • Political CMC agreed that Munsoft should be utilised. • Six months interim Fixed Asset Register has been. • The draft budget adopted as final by the Political CMC on 6 June 2016. • m. SCOA Steering Committees have been formulated for both municipalities. • Consolidated Financial Statements to be done for the financial year ended 30 June 2016. • It is envisaged that all committed projects will be TECH COMM. IDP INST. • The listing • A draft • Draft • Naming of new of Project communication Individual municipality is strategy has IDPs 16/17 awaiting MEC complete. been developed. has been Response on • Central adopted by proposed name communication both approved by point has been councils nd PCMC, and both a identified. submitted to Councils as per • The milestone MEC for submission to calendars are in COGTA in MEC COGTA in developmental March December 2015. stages. 2016 KZN • Ladysmith to be • All mayoral 238 Draft utilised as the speeches IDP/SDF Head Office include 16/17 satellite offices information approved y Indaka offices b about the PCMC and Council merger. Councils of Chambers • Traditional both Ladysmith leaders are Emnambithi/ offices invited to attend Ladysmith all events and Indaka they do attend Municipalitie at times. s. Noticeably Document attending are was then traditional submitted to leaders from MEC Emnambithi COGTA on and those from 31 March Indaka seldom 2016 attend.

2. KZN: DEM /: KWA SANI AND INGWE (2) [Harry Gwala DM]. LEGAL HRM • The By-laws have been onsolidated, c presented to the two Councils and are ready for adoption by the new Council. The By-laws are B 2 B aligned. • The HR and Finance policies have been finalized and are ready to be adopted by the new Council. • The existing archive system at Ingwe LM will be utilized as the new archive system. • Both unicipalities M have disclosed all contracts, extending beyond 30 TH June 2016. • The organogram has been adopted by the current Councils and the PCMC • 199 permanent existing staff. • The work study process and Job Discription’s has been finalised. • The job evaluation process is still underway. • The placement policy has been approved by PCMC and adopted by both Councils on the 31 st. • Grading of new municipality (for Cllr Remuneration) is Graded at 3. • A study is being conducted on the cost and a policy is being developed. FIN • The implementation date for new Valuation Rolls will be 1 July 2017. • The current service provider is working on rationalization of Consolidated IT Systems. • COGTA has assisted with Tariff restructuring project has been completed. • SCOA implementation will start once the rationalization of financial systems have been finalized. • The draft budget has been tabled to PCMC and the relevant Councils • A service provider will be appointed in 2016/17 that will TECH COMM. IDP • Listing of • Agreed • The draft Committe Communicatio reviewed d projects n Strategy. IDP per ward The Harry document is completed. Gwala District currently Municipality is being the central developed. communicatio n point. • The Milestone calendar has been developed DP I and ombined C roadshows have been conducted. INST. • The site of the new office has been identified in Bulwer . The current Ingwe LM will be an interim Head Office. • Dr Nkosazane Dlamini Zuma was proposed. • Kwa. Sani will remain as the satellite office • Council Chamber will be at Ingwe LM

2. KZN: DEM: NTAMBANANA/ MTHONJANENI /UMHLATHUZE (3) [u. Thungulu DM]. LEGAL HRM • The list of consolidated bylaws and policies have been finalised. • u. Mhlathuze – is handling the process of ransfer of archive system to new municipality and they are happy with the progress. • The Ntambanana CFO has confirmed that all contract relating to financial services will expire on the 30 June 3. 2+, with the exeption of the Banking Contract where the banker will be requested to extend the contract until the conclusion of cash transfers split as per the split model proposed by COGTA. • Existing staff component per function per staff member is completed with the exception of u. Mhlathuze. • u. Mhlathuze – Awaiting for the HR CMC resolutions on the exact number of staff to be taken over but a slalary budget was made from the Demarcation Transitional Grant of R 6. 1 million. • u. Mhlathuze – In progress, placement not yet finalised by the placement committee as at 27 May 2016. Awaiting conclusions by the HR CMC. • u. Mhlathuze – In progress. The next job evaluation meeting for NTA FIN • Ntambanana – to send final valuation roll to all the other respective municialities • u. Mhlathuze Term of the GV is 4 years expiring in June 2018. Due Dilligence outstanding • u. Mfolozi – completed (information submitted by KZ 283) • Mthonjaneni – the term of the GV is 4 years expiring on 30 June 2019 • u. Thungulu – completed (information submitted by KZ 283). • Billing during and post elections to be clarified by Co. GTA. TECH COMM. IDP • Committe d projects per ward completed. u. Mhlathuz e – completed (verificatio n of projects); Mthonjane ni – ongoing and u. Thungulu – as per the annexure from KZ 283. • u. Mhlathuze – • u. Mhlathuze underway – to be (outreach adopted in programmes to June 2016 start from end • Mthonjaneni January 2016) – will be • u. Thungulu – adopted District is prior to LG aligned to Elections national theme • u. Thunguu – • u. Mhlathuze – will be Strategy adopted document to be prior to LG shared with Elections other municipalities and execution to be driven by the Communication Task Team comprising of u. Thungulu, u. Mhlathuze, Ntambanana and Mthonjaneni. • Mthonjaneni – to be developed at both municipalities. • u. Thungulu – Council INST. Head Office remain at Mthonjaneni i– name will be retained.

3. MPUMALANGA: DEM /2. MBOMBELA AND UMJINDI (2) [Ehlanzeni DM]. STATUS UPDATE: PER DEM LEGAL HRM FINANCE TECHNICAL • Section 14(5) Notice published. • List of by-laws for both municipalities in place. • By-laws are currently being rationalised to be approved by the new council. • By-laws are being rationalised using B 2 B principles. • Systems in place to transfer archives • Consultation with Provincial Archivist underway to conclude on matters related to the transfer of archives. • All contracts have been listed • Out of court settlement will be considered for cases with little or no prospect of success. • Existing function per staff member compiled • Structure developed, awaiting final approval from PCMC. • Work-study process is currently being developed in consultation with SALGA, expected to be completed at the end of the 2016/17 Financial Year. • Placement policy has been finalised in consultation with organised labour and SALGA • The Placement Policy will be tabled to PCMC on 30 th June 2016 for endorsement • • Terms of valuation rolls process finalised New municipality to develop new evaluation roll within a two year transition period • IT Transition plan developed catering for all IT related matters • Draft business plan submitted to DCo. G contains budget requirements for financial requirements to be catered for. • Both municipalities mandated by PCMC to prepare updated asset register by 2016/06/30. • 40% of MDTG will be used for migrating the two municipalities into a single financial application system for payroll, assets, risk and supply chain. • Bank Account is settled – Existing Contract of Mbombela Local Municipality will be used to open a new primary bank account with ABSA for the new municipality. • Project list developed • MIG and MWIG projects will be merged • Currently running/implemented projects will be monitored • IDP, Finance and Technical Services Task Teams ensuring that projects approved in IDP’s of the two councils for the 2016/17 Financial Year are delivered by the new municipality.

3. MPUMALANGA: DEM /2. MBOMBELA AND UMJINDI (2) [Ehlanzeni DM]. STATUS UPDATE: PER DEM COMMUNICATION IDP INSTITUTIONAL • A Communication Strategy approved on 01/02/2016. • Challenge with sourcing R 3 million to finance the roll out of the strategy • Implementation of strategy to be implemented 100% - Creativity required to mitigate the shortfall in the budgetary requirement shortfall. • Community and Regional SABC radio are used for interviews and phone-in programmes • All information contained in communication strategy with only dates to be revised in line with delayed approval strategy. • All available print media owned by local, district municipalities and province are used for marketing. • The name of the new municipality is the ‘’City of Mbombela Local Municipality’’ – no logo finalised. • IDP and Budget izimbizo are used to communicate the amalgamation to the public, due to lack of funds and the limitation posed by the MDTG • Guidelines approved and contained in section 14(5) notice. • District GIS Manager will work with IT Team to merge the GIS capabilities of the two municipalities • Two IDPs will be consolidated for approval by new council. • The District will assist in financing the consolidation of the two municipalities • Section 12 notices approved to be published • The name of the new municipality will be “City of Mbombela Local Municipality” • Organisational Structure will be tabled to PCMC on 30 June 2016 for endorsement. Final Organisational Structure will be tabled before the two respective councils in special council meetings to be convened at the beginning of July 2016. • The type of municipality is Category “B” Municipality.

4. FREE STATE: DEM: MANGAUNG AND NALEDI (2) Xhariep District Municipality LEGAL HUMAN RESOURCES FINANCE TECHNICAL • Section 14(5) Notice published. • Set of policies and by-laws completed for both municipalities. The set of bylaws will be presented to the new Council to approve the rationalisation/promulgation process. • Compilation of list of files has been completed in Naledi LM. • The complete conversion of the record management system of Naledi LM into the electronic file classification plan of Mangaung MM is underway and this is pre- and post- incorporation work. • Compilation of list of all existing agreements (contracts/MOUs/SLAs) has been completed at Naledi and has been submitted to Mangaung MM. • Lists of both civil and labour cases have been completed for Naledi Local Municipality. The Municipality has two(2) labour cases pending in the Labour Court. • The total number of employees in Naledi is 146( i. e. MM, CFO & Director Corporate Services), 6 Interns & 137 permanent employees). • The job description of each of the 146 employees has been submitted to the Mangaung MM. • A proposed functional structure reflecting the allocation of Naledi LM functions(designations) into the MMM structure finalised. • The Naledi LM structure will be regarded as additional staff establishment (cost centre) and will be “ring-fenced” until the process to approve a new inclusive organogram is commenced with by the new Council. • Physical relocation of personnel is to be avoided to all costs. A list of positions which may possibly be relocated to Head Office(BFN) due to centralised nature of functions is completed. • HR Placement Policy which is a framework for placement is to be approved urgently so as to guide the placement processes. • The current GVRs for Mangaung • The compilation of MM and Naledi LM are valid until projects per ward is 30 June 2017 and 30 June 2019 finalised and there are respectively. fourteen (14) projects • The two merging municipalities which are being have compiled individual budgets implemented in Naledi for the 2016/17 municipal financial LM. year. • A Budget Team comprising of the officials of Treasury, SALGA, COGTA and the two municipalities has been established. • For the financial year ending 30 June 2016 the two municipalities will prepare separate final audited financial statements (AFS). • Reconciliation of grants allocated for each project is finalised. • The tariff list is finalised for NLM and is part of the Municipality’s annual budget input process. • Mangaung MM is m. SCOA pilot. Systems are in place for implementation of the m. SCOA during the new financial year of 2016/17. The Provincial Treasury is currently assisting NLM so that on incorporation the MMM is able to implement m. SCOA compliant budget.

4. FREE STATE: DEM: MANGAUNG AND NALEDI (2) Xhariep District Municipality COMMUNICATION IDP INSTITUTIONAL • The Communication Strategy and • Each Municipality will be adopting its • Section 12 Notices for the re-establishment of draft Action Plan operationalising the reviewed IDP separately while noting Xhariep District Municipality, Mangaung Communication Strategy were the reviewed IDP of the other for the Metropolitan Municipality and Masilonyana completed. 2016/17 financial year. Local Municipality were published on 10 June • Separate information sessions were • The combined IDP will be adopted 2016 for public comments. held on 15 June 2016 with the LLF after the local government elections. • The Head Office will remain the main offices and organised farming community of of the Mangaung MM in Bloemfontein. Naledi LM. • The name of the newly demarcated • The MEC held a public meeting with municipality will remain Mangaung. the community of Naledi LM in • The Council Chambers will remain Bram December 2015 and there are further Fischer Building in Bloemfontein. community engagement meetings planned and which must take place before the elections. • Effective 1 July 2016 until 3 August 2016 the following operational plan will be implemented: ü Radio live reads on the following radio stations: Mosupatsela FM, Motheo FM, OFM (pre-recorded adverts) ü Print adverts on the following newspapers: Dumelang News, The Mail, The Weekly, The Mangaung Issue, Courant, The New Age(National) and Free State News. ü Work is underway for pylons and directional signage.

5. NW: DEM: VENTERSDORP AND TLOKWE (2)[Dr Kenneth Kaunda DM]. LEGAL HUMAN RESOURCES FINANCE TECHNICAL • Section 14(5) Notice published. • A comparative assessment of both Policies and By-Laws was undertaken in both municipalities • The TCMC made final assessment on the 7 th March to ensure alignment to B 2 B • The Consolidated Policies and By-Laws were tabled at the PCMC on 7 th April • The PCMC have noted the consolidated Policies and Bylaws. • The department CATA has been approached to facilitate the process towards the transfer of records/archive systemclear deliverables no later than the 30 th of June 2016. • List of all existing contracts/ agreements of both municipalities has been compiled • A comparative analysis was undertaken for both municipalities and the findings have been submitted to the OD Specialist seconded by dlghs to be incorporated in the compilation of the new organogram as well as the Work Study /Job evaluation process. • Ventersdorp has 231 employees, and Tlokwe has 1200 employees. • Rationalized Placement Policy completed and submitted to PTCMC for discussion on 05 th July 2016. • Finance to determine Retrenchment costs once placement is completed. • Salary after placement to be determined once the organizational structure is adopted by new council. • Negotiation for the amalgamating unicipalities m are on at the SALGBC, a grade will be given at the end of negotiations. • All salaries are aligned with the provisional grade 4, consultation has been done with both municipalities. • Tlokwe and Ventersdorp valuation rolls • The work stream are valid until 2017 and 2018, has assembled a respectively. list of projects per • Supplementary Valuation Roll for both ward and it has Municipalities are compiled half yearly. been filed as part • An amendment to the section 12 notice of the Portfolio of to include valuation roll issues shall be Evidence publicized by 15 July 2016. • Both systems are currently being tested and undergoing m. SCOA compliancy. • Tlokwe is an m. SCOA pilot site and about 90% active, and functioning for Seven(7) months. • The Draft Costed Businessplan has been submitted to COGTA on the 17 th of June 2016. • The asset registers for both municipalities are GRAP compliant. • The MEC made a determination of transferring of assets to the new municipality in the Section 14[5] Notice published on the 13 th of May 2016. • Both Municipalities have a list of projects and specific grant funding. • Tlokwe Local Municipality does not have any loans, however. • The Budget process conducted in line with Circular 78 and MBRR( That both respective municipalities would budget separately but would however prepare a consolidated budget for the amalgamated municipality.

5. NW: DEM: VENTERSDORP AND TLOKWE (2)[Dr Kenneth Kaunda DM]. COMMUNICATION IDP • A communications team has been • The current Councils adopted process established and a communications plans for 2015/16 by end of August calendar/strategy/plan has been developed 2015, which factored in the transitional with COGTA election theme. measures. • The PCMC has activated the • Each Municipality adopted the Revised communications plan I. e. media IDP 2016/17 by 31 March 2016. statements has been released by the MEC • The combined 5 years plan IDP will be and Mayors around the merger. adopted only after the LG elections. • Both municipal logo’s are still being used parallel • Combined Road shows planned for Feb till March 2016 • There are no traditional leadership in the respective municipal areas. • Both municipal logo’s are still being used parallel • The PCMC has activated the communications plan I. e. media statements has been released by the MEC and Mayors around the merger. • The PCMC will have a week long Community Awareness Campaign in covering all the wards of the two municipality during the April and May month. • Funding However remains a concern as Marketing material for the amalgamation has to be in place. • Thus far the only funding received was a financial contribution from the Dr Kenneth Kaunda District Municipality of R 20 000. 00 to assist in the road show of the Political Change Management Committee. INSTITUTIONAL • Section 12 notice published for public comment. • Determination of Head Office, naming and identification of council chambers till under going Political Consultation Process to be concluded on the 8 th of July 2016 • Proposal have been received from both municipalities • These have been escalated to the intervention of the MEC for Local Government and Human Settlement and Provincial Exco for finalisation.

6. NORTHERN CAPE DEM/ MIER AND //KHARA HAIS (2) [ZF Mgcawu DM]. LEGAL HUMAN RESOURCES FINANCE TECHNICAL • Section 14(5) Notice published. • The Process of rationalisation of by-laws and policies to be outsourced. Quotations received. Lists from both municipalities received and reviewed. Coghsta in the process to appoint a service provider to do quality assurance on the review. • Promulgation to be done by new council post the elections. • A meeting with Provincial Archives were held on 22 February 2016 in order that the process can be done according to procedure and protocol. The process will then unfold and will be completed by end of June 2016. The process of transferring the archive system will be completed by end of June 2016. • Lists of both contracts for both municipalities received. • Outstanding Court Cases for both municipalities provision of R 2 million. • The existing staff component and functions per staff is complete. • The new organogram is almost complete. This process was done in-house and both unions are on board. Coghsta in the process to appoint a service provider to do quality assurance on the HR & OD processes this process will be completed by end 15 July 2016. • SALGA is assisting in the Work study process and the JE System of //Khara Hais will be utilised as the software license is paid. • The finalisation of the satellite office functions. The cost is estimated at R 300 000. • Placement Policy is approved to be reviewed for quality assurance purposes. • Re-location cost of staff will be done after placement and satellite office functions has been finalised. • Retrenchment costs not yet finalised. • Finalising Grading of new municipality in process with unions. Process to be finalised by June 2016. • Both municipalities’ valuation rolls • As prioritised during are valid until 2018. the IDP consultations • //Khara Hais in the process of per ward. Projects will Supplementary Roll. Mier indicated be aligned to new a possibility of doing a wards once approved. supplementary to be done. New • In consultation with roll for Mier R 230 008. 00. Cost to sector departments at combine the 2 roll R 69 932. 00. district and provincial • Mier uses Samras. // Khara Hais level to finalise the uses BIQ financial system. The any new projects that new municipality will use BIQ may be planned as a dependant on NT assessment of result of the budgets MSCOA compliance of BIQ. being finalised for //Khara Hais MSCOA pilot site. 2016/17 at provincial • Consolidation of IT Systems is & national level. almost completed. Quotations received. Challenge of ICT connectivity, proposal is that towers be utilised for this purpose. • TGIS is the service provider will complete the assets registers for both municipalities and then combine the lists for the new municipality. • The ZFM District Municipality will go out on tender for the appointment of the Primary Banker. • Both Municipalities have loans outstanding as at June 2015 on the audited AFS.

6. NORTHERN CAPE DEM/ MIER AND //KHARA HAIS (2) [ZF Mgcawu DM]. COMMUNICATION IDP • The Communication strategy is finalised • The IDP’s for both municipalities and the implementation plan approved. has followed the process and is The ZFM district municipality is the central ready for final approval. point of communication. • Combined roadshows was planned for March and April 2016 and this action was completed. • No recognised Traditional Leaders as yet due to the Khoisan Bill not being enacted as yet. However the public participation does include the Traditional Communities in the Mier municipal area. Quotations has been received for the radio and media advertising. • Funding remains a challenge as the MDT Grant will only be available post the 2016 Local Government elections. Both Mier & //Khara Hais is cash strapped at the moment. • A one hour slot is available for the Mayors to speak on Radio Riverside on the amalgamation, This will include a phone in session. A successful Media Briefing on the process of amalgamation, by the MEC and the Mayors of Mier, // Khara Hais and the Executive Mayor of ZFM was held on the 12 May 2016. INSTITUTIONAL • Draft Section 12 notice in place to be published for public comment. • Upington will be the new Head Office. (The buildings of the former //Khara Hais will be utilised). • The process of public participation will unfold in March & April assisted by the Department of Sports Arts & Culture. Mier’s process completed. //Khara Hais programme will run till end April 2016. The new name to be gazetted by end of June 2016 after approval by both councils and the MPTMC. • Rietfontein (Mier) will be the satellite office. There will be 7 pay point offices in the former Mier Municipality. • The Council Chambers will be in Upington. The Council Chambers of //Khara Hais will be utilised.

8. LIMPOPO: LEGAL MATTERS ITEM LEGAL CAPRICORN DM WATERBERG DM SEKHUKHUNE DM VEMBE DM • Revenue collection by-laws rationalised and submitted to COGHSTA Blouberg finalising rationalisation of by-laws and will submit as soon as they are finalised. • All affected municipalities have submitted identified priority policies to COGHSTA. • Rationalized by-laws will have to be approved by new Councils after elections. • Listing of documents is continuing and will be submitted in both hard and soft copies to the receiving municipalities. • A letter will be generated from Aganang municipality informing the Provincial Archives for the intention to dispose documents (destroy or transfer). • List of contracts with financial implications submitted to COGHSTA. • Aganang Municipality to submit a revised list of contracts. • All local municipalities have submitted their bylaws and policies to the task team. The rationalisation process has commenced. • 8 mandatory by-laws have been rationalised. 2 have been submitted to Co. GHSTA for certification. • . Research and Police Directorate within the Department is assisting the district with the rationalisation of the policies. • The process for integrating records management system of the two municipalities is underway. • Awaiting provincial aquavits to provide clarity on records. • A list of all contractual obligations in all municipalities has been submitted. • Revenue collection bylaws have been rationalised namely Property rates; Credit control and debt collection; and tariffs. • The three draft by-laws were duly approved by Political Change Management Committee on the 14 June 2016 • Fourteen policies have been rationalised and approved by the PCMC on the 14 June 2016. • File plan, procedure manual and policy approved by the PCMC on the 14 June 2016. Transfer of records awaiting new council. • List of contracts is in place and audit of SLA’s to be finalised by 30 th June 2016. There are no challenges. • By laws rationalisation Four(4) mandatory by laws for the new municipality LIM 345 done and submitted to COGHSTA. • HR policies were rationalised for the new municipality. • Records Procedure Manual developed. • File Plan for LIM 345 to be developed in consultation with Provincial Archivist. • Listing of documents from transferring municipalities is continuing and will be submitted in both hard and soft copies to the receiving municipalities. • Contracts from transferring unicipalities m are to be identified and consolidated in consultation with COGHSTA.

8. LIMPOPO: HUMAN RESOURCE ITEM HUMAN RESOURCE CAPRICORN DM WATERBERG DM SEKHUKHUNE DM VEMBE DM • The total number of existing staff in Aganang is 114. The transfer will be in terms of section 12 notice, read with the LRA S 197 and circular 78. • Draft Transfer Agreement and Placement Framework available due to be discussed at the TCMC meeting. • A placement framework to guide the placement process has been developed for consideration by the TCMC. • Work study processes and job evaluation will be done by individual municipalities. • Affected municipalities are expected to submit business plans with terms of reference to cover the placement costs. • Aganang has issued a list of salary scales of all the 114 employees to all affected local municipality. The receiving municipalities has catered the salary budget into their budgets . • Staff complement (head count) in all municipalities has been finalised. • Existing function per staff member and job descriptions per staff member has been finalised. • 100% draft organisational structure for the new municipality has been finalised to be presented in the next TCMC meeting for recommendations to the PCMC. • Awaiting the process of job evaluation to put post levels on the draft organogram. • The salary budget for all staff members to be transferred has been finalised. • Draft Placement policy in place. • There are 244 staff in Greater Tubatse and 83 in Fetakgomo municipalities. • Job descriptions in place for all staff in the two municipalities. • The draft organisational structure has been finalised and presented to the TCMC. The draft structure will be tabled to council for approval. • No progress on work study process. • Placement policy approved by Political CMC on the 14 June 2016. • Placement and Relocation and retrenchment costs not yet determined. • Present salary budget of staff members to be placed process completed. • Thulamela and Makhado busy with the review of the organisational structure and will be finalised before the 30 June 2016 • LIM 345 Organogram has been noted and approved by the PCMC on the 20 th April 2016. • Job evaluation and Work study processes and job evaluation will be done by new municipalities. • Placement costs after placement not yet determined. • Draft placement policy for Mutale and Thulamela and Musina and transfer agreements were presented to PCMC on the 08 June 2016 • Relocation cost included on the Business Plan. • SALGA to Categorise the new entity.

8. LIMPOPO: FINANCE ITEM FINANCE CAPRICORN DM WATERBERG DM SEKHUKHUNE DM VEMBE DM • The valuation rolls for all local municipalities are in use from 1 July 2012 to June 2016. • The receiving local municipalities will compile supplementary valuation rolls to incorporate areas from Aganang. • Assessment of systems, network and infrastructure and current contracts in IT conducted • There is no billing system at Aganang, as a result, there is no need for integration. • Attention should be given to termination of the Venus system taking into account legal matters and data migration. • Polokwane will retain SAMRAS. • Assessment was done and since Blouberg and Molemole are utilising the same system consolidation will be done through data cleansing and transfer before deadline. • Valuation rolls for both Modimolle and Mookgophong are ending in June 2017. • The Munsoft system, currently in operation at Modimolle to be regarded as the main financial system for the merging municipalities. • Modimolle and Mookgophong will work together with the Munsoft service provider towards m. SCOA compliance. • Both municipalities are currently updating their asset register. • Draft budgets for the two Municipalities are in place and consolidated Budget is at 30% complete Consolidation to be finalised by Budget 30 June 2016. • Draft tariff structures had been tabled to the two councils for consideration. • The two municipalities have been granted approval to implement the current valuation rolls from 01 July 2016. • The two municipalities have agreed to Evenus system for Finance and VIP for HR & Payroll. • The consolidated asset register will then be finalised by end of June 2016. • Fetakgomo Municipality has no outstanding long term loans. Greater Tubatse has long term loans. • The process for consolidating the tabled budget for the two municipalities has commenced. • Standard bank to be used as primary bank account. • Fetakgomo has submitted the Mscoa implementation plan to council. • Current valuation to be adopted by respective municipality. • All Infrastructure assets registers within Vhembe District have been gathered according to affected municipalities. • After the council sitting resolution of dissolving Mutale all assets should be gathered and be verified before distribution to the receiving Municipality. • Musina have a loan with DBSA and to be settled in 2018 and Mutale to be settled September 2016. • All local municipalities are preparing for m. SCOA compliance but Thulamela is ready as of July 2016. • Budget process and IDP is work in progress.

8. LIMPOPO: TECHNICAL & COMMUNICATION. ITEM CAPRICORN DM WATERBERG DM SEKHUKHUNE DM VEMBE DM TECHNICAL • Based on the equitable share • 3 year capital plan in • The draft IDP and Budgets • No report provided and other grants, the affected place. for 2016/2017 were adopted under this workstream. municipalities will have by the two municipalities and committed projects for the projects have been indicated wards they are receiving. as they affect various wards. COMMUNICATION • The communication strategy is developed and is aiming at outlining communication activities for the wards delimitation processes. • Communications is centralised at the district level through the existing structure of the District Communicators Forum that is chaired by district. • There is a weekly Rapid Response teleconference sessions that are held every Wednesdays and the disestablishment matter is a standing item on the Agenda. • Local municipalities are working within their specific localities and assisted by district in establishing the Local Government Communicators Forums that will enhance and strengthen communications in the affected municipalities – not yet done. • Draft Communication strategy has been developed to be presented to the TCMC. • The main challenge is that the municipalities do not have funding to implement he strategy. t The District is the central communication centre. • Milestone calendar developed and forms part of the communication strategy. • Speech writers to include amalgamation updates. • No progress due to financial constraints. • No Traditional Leaders in the both municipalities. • The communication strategy • Internal communication is in place. is the responsibility of • Traditional leadership has the affected been engaged in the municipalities respective public • Engagements with participations and will further traditional leadership be invited for the joint through IMC sessions. • Print media has been used to make public aware of the process • The Executive Mayor and two local mayors have agreed that during IDP/budget processes, combined road shows be muted. • A special newsletter was issued.

8. LIMPOPO: IDP & INSTITUTIONAL. ITEM CAPRICORN DM • All municipalities have adopted their IDPs. WATERBERG DM SEKHUKHUNE DM VEMBE DM IDP • Submissions were • Fetakgomo Municipality has • made to Corporate Subsubmitted the revised process plan Committee for their for amalgamated IDP on 31 March consideration, a draft is 2016. in place. • Greater Tubatse has not yet • submitted the revised process plan. INSTITUTIONAL • Reported as • The institutional matters • being Not are reported as follows: Applicable. o Head Office: • Modimolle. o Interim name: Modimolle/Mookgoph ong. o Satellite offices: Mabatlane, Roedtan and Alma. • o Council Chambers: Modimolle o Type: Mayoral Exeutive The interim name is Fetakgomo/Greater Tubatse. The Change management subcommittee on communication has been tasked to approach the chairperson of the district Geographic Names Council to commence with the naming process for the new municipality. Satellite offices have been identified in both Fetakgomo and Greater Tubatse. Fetakgomo Apel and Atok Greater Tubatse Praktiseer, Ohrigstad , Mapodile, Praktiseer. • Council Chambers have been identified in Fetakgomo as a short term agreement. Joint meeting with Budget and IDP to finalise LIM 345 IDP and Budget before 09 th June 2016 - Consolidation of IDPs of current IDPs from transferring municipalities done • District Political Change Management Committee to determine LIM 345 Head Office • Interim name of LIM 345 is Hlanganani-Malamulela. Vuwani. • District Political Change Management Committee to determine LIM 345 satellite office. • District Political Change Management Committee to determine LIM 345 to determine Council Chambers.

8. EASTERN CAPE: LEGAL MATTERS ITEM LEGAL AMATHOLE DM CHRIS HANI DM JOE GQABI DM SARAH BAARTMAN DM • Lists completed but various defects identified with Bylaws. New By-laws recommended as current By -laws outdated. • A set of Draft policies in in place, will be submitted for adoption by the new municipal council. • Draft Rules of Order issued by SALGA will be used for the first Council meeting. The new entity will still have to develop its own Rules of Order. • Work still in progress – DSRAC is to assist. Both LM’s use manual system. • Analysis is still being undertaken to be finalised on 19 June 2016. A set of all key Draft By. Laws is in A set of Draft Rules of Order is in place and is awaiting to be adopted by the PCMC but the Draft Rules of Order issued by SALGA will be used for the first Council meeting. • place and is waiting for consideration by the new Council. • A set of Draft policies is in place and is waiting for consideration by the new Council. • Work still in progress – DSRAC is to assist. • Analysis is still being undertaken. • A set of Draft By-Laws is in place and is waiting for consideration by the new Council. • A set of Draft policies is in place and is waiting for consideration by the new Council. • A set of Draft Rules of Order is in place and is waiting to be adopted by the PCMC but the Draft Rules of Order issued by SALGA will be used for the first Council meeting. • Work still in progress – DSRAC is to assist. • List of all contracts is in place; outstanding is the fact that other contracts have not yet been submitted so as to look at their clauses to see which contracts are to be used. • A set of Draft By-Laws is in place and is waiting for consideration by the new Council. • A set of Draft policies is in place and is waiting for consideration by the new Council. • Draft Rules of Order issued by SALGA will be used for the first Council meeting. The new entity will still have to develop its own Rules of Order. • Work still in progress – DSRAC is to assist. • List of all contracts is in place.

8. EASTERN CAPE: HUMAN RESOURCE ITEM HUMAN RESOURCE AMATHOLE DM CHRIS HANI DM JOE GQABI DM SARAH BAARTMAN DM • Total component of permanent employees = 407 filled positions and 97 vacant positions. Nxuba not all staff have functions (20% does have) and Nkonkobe all employees have them. • Job descriptions for current positions are in place. In instances where numbers are not aligned the new entity have to develop new job descriptions. • A draft structure based on what is expected to be the powers and functions of the new entity has been developed. • A list of all Section 56 Managers is in place. • A list of all existing staff component of the three municipalities has been compiled but the site is still scrutinising some contracts • Job descriptions for current positions are in place • A draft functional structure based on what is expected to be the powers and functions of the new entity has been developed • A list of all Section 56 Managers is in place. • A list of all existing staff component of the two municipalities has been compiled an analysis of existing contracts has been completed. • Job descriptions for current positions are in place • A draft functional structure based on what is expected to be the powers and functions of the new entity has been developed • A list of all Section 56 Managers is in place. • A list of all existing staff component of the three municipalities has been compiled an analysis of existing contracts has been completed. • Job descriptions for current positions are in place • A draft functional structure based on what is expected to be the powers and functions of the new entity has been developed • A list of all Section 56 Managers is in place.

8. EASTERN CAPE: FINANCE ITEM FINANCE AMATHOLE DM CHRIS HANI DM JOE GQABI DM SARAH BAARTMAN DM • The published Gazette allows the municipalities to continue to use the current valuation or request for a year’s extension until the new entity develops its new valuation roll for 2019. • Both municipalities are using Venus; Con. Log for electricity; Caseware for AFS and Payday for payroll. • GRAP compliant fixed asset registers are in place. • Different tariffs for the two municipalities are in place and are going to continue being implemented as they are until a new entity takes effect. • The draft budget for the new entity is in place. • List of financial commitments is in place. • The published Gazette allows the municipalities to continue to use the current valuation or request for a year’s extension until the new entity develops its new valuation roll for 2019. • Two municipalities are using Venus but the other one is using Sebata. The new entity will decide on the new one. • The Asset Registers will be consolidated with the support from Treasury and COGTA- EC. • Tariffs to be implemented as they are until a new entity takes effect • List of financial commitments is in place. • The draft budget for the new entity is in place. • Few leases are in place with service providers • The published Gazette allows the municipalities to continue with the current valuation or request for a year’s extension until the new entity develops its new valuation roll for 2019. • Both municipalities signed SCOA implementation agreements with the same Service Provider. • Decided on the same IT System. • Appointed a service provider to assist both municipalities with financial statements. • The draft budget for the new entity is in place. • A service provider has been appointed to harmonise the tariffs. • Long terms service contracts have been identified. • The published Gazette allows the municipalities to continue to use the current valuation or request for a year’s extension until the new entity develops its new valuation roll for 2019. • A recommendation to use Promum Billing System is in place and is waiting for MSCOA compliance status. • A consolidated list of loans and grants has been compiled • Evaluation of tariffs has been done by individual municipalities • The draft budget for the new entity is in place. • Contract registers have been completed with dates of expiry. • No long term loans.

8. EASTERN CAPE: TECHNICAL & COMMUNICATION. ITEM AMATHOLE DM CHRIS HANI DM JOE GQABI DM SARAH BAARTMAN DM TECHNICAL • List of committed projects per • Draft prioritisation • MIG 3 Year Infrastructure • COGTA and National ward is in place. Engagements Matrix is in place. Plan was compiled and Treasury is still to be with sector departments is submitted to Co. GTA. engaged on MIG ongoing. Projects. COMMUNICATION • A communication & Public • A Draft Participation Plan was Communication developed for the entire Strategy in place. amalgamation process and the • Communication naming of the new Municipality. Plan included • Internal and external website, stakeholders were identified. amalgamation • Umhlobo Wenene- interviewed News and Fact ADM Executive Mayor. Sheet. • Forthare FM- interviewed ADM Executive Mayor. • Daily Dispatch adverts issued by both LMs. • Letters to stakeholders were sent by LMs to encourage them to suggest names for new LM. • ADM Speaker and Political Leadership of both LMs held stakeholder meetings on the project • Joe Gqabi DM is currently • A communication & the central communication Public Participation Plan point. was developed for the • Proposed Communication entire amalgamation Unit Organogram has been process and the naming developed. of the new Municipality. • The project was included in • All communication all the speeches of the pertaining to Executive Mayor and LM amalgamation is being Mayors. dealt with by the SBDM. • Combined road shows took place in Oct – November 2015. • New branding LOGO was developed and is waiting for the CMC approval. • Advertising Notices were placed in local newsletters and radio stations for public participation.

8. EASTERN CAPE: IDP &INSTITUTIONAL. ITEM AMATHOLE DM CHRIS HANI DM JOE GQABI DM SARAH BAARTMAN DM IDP • The draft 16/17 IDP has been • IDP Process Plan was • Status of development of • All three municipalities developed and still work in approved. IDP; the combined are currently busy with progress. Draft SDBIP will be • Situational analysis for process plans has been the compilation of their finalised after the adoption of the Enock Mgijima developed. Adopt revised draft IDPs and Budgets IDP and Budget by the Political Municipality was done. IDP before or after 2016 as required in terms of CMC. The draft 16/17 IDP/PMS • Strategic Planning LG Elections – the first MFMA Circular 78. Process Plan has been Session of Technical; phase has been These were be tabled to developed. The draft PMS and Political completed and currently the respective councils at Framework has been developed. Leadership were held busy with the second the end of March 2016. and supported by phase. The PMS policy Co. GTA- EC. and SDBIP has been developed. INSTITUTIONAL • Alice to be the Legislative seat of the new municipality • Fort Beaufort will be the Administrative seat of the new municipality • The name of the new municipality will be Raymond Mhlaba Local Municipality • Adelaide and Middledrift will be the Satellite Offices • Council Chamber will be at Alice • Mr. L. Menze, the Strategic Planning & LED Director was appointed by the MEC. • Komani to be the seat of the new municipality • The name of the new municipality will be Enock Mgijima Local Municipality • Still to identify and finalise • Council Chamber will be in Queenstown • Ms N. Gqiba, the current Lukhanji MM is a appointed. • Burgersdorp to be the • Graaf – Reinet is the seat of the new seat of the Council and municipality. the Head Office. • The name of the new municipality will be Dr. Walter Sisulu Local Beyers Naude Local Municipality. • Aliwal North, Steynsburg, • The current Municipal Venterstad and Manager of Camdeboo Jamestown will be the should serve as the Satellite Offices. interim Municipal • Council Chamber will be Manager. in Burgersdorp. • The current Municipal Manager of Gariep will serve as the interim Municipal Manager