Rustenburg coalition passes pro-poor budget, girds itself for delivery
RUSTENBURG Local Municipality is moving swiftly to implement a number of reforms aimed at promoting stability, operational efficiencies, uprooting maladministration and ensuring positive results in service delivery and clean governance.
The coalition comprising the African National Congress (ANC), Botho Community Movement (BMC) and African Independent Congress (AIC), experienced some teething problems following the local government elections in August last year, but a year on was able to leap over the hurdles and approve the three year budget that is linked to the five year Integrated Development Plan – which is the principal strategic vision of the municipality.
Executive Mayor Mpho Khunou says on the basis of the Medium Term Revenue and Expenditure Framework, which is guided by the IDP, the current year approved budget is R4.6 billion; rising to over R5 billion next year and increasing to R5.2 billion in the outer year.
“This bears testimony to the maturity of leadership amongst the coalition partners and all parties. It is the triumph of open engagement with opposition parties to take the high road in addressing the challenges faced by the people we serve,” Mayor Khunou says.
He lists the endorsement by all parties of the transparency of the process of filling the Municipal Manager’s position, the Chief Financial Officer, Director of Local Human Settlement and Director of Roads and Transport Infrastructure, as another success.
The Council also hit the ground running to re-launch ward committees and new rules and regulations.
“Together we are inculcating a culture of operational transparency. All interviews for senior managers will be open to the public. We have also adopted an open tender system so the public and interested parties could observe and know how a decision was reached,” Mayor Khunou says.
Correct, complete billing, revenue management systems:
Municipal Manager and Chief Financial Officer have embarked on a project with service provider to ensure everyone who must be billed for services is identified, incorporated in the system and that all outstanding and due amounts are collected.
Use of smart technology meters. Within six months Municipality will have rolled out 50, 000 smart meters to mitigate errors in billing.
Auditor General’s Report:
In pursuit of a clean administration and financial integrity a forensic audit was conducted on budgeting and treasury, directorate of infrastructure and technical services, electricity, water and sanitation where it was found that there may have been failures to adhere to proper procedures.
A report will be tabled in September 2017 for appropriate action.
A process to vet all qualifications of senior managers, cascading to supervisors, foremen and lower ranks has been started and will be completed in the next three months.
Due process will be followed on those found to have misrepresented themselves.
Disciplinary board to look at all matters of financial mismanagement and all matters that point to flaunting of Council rules, the constitution and local government legislation.
Local empowerment
Council has increased the threshold for local empowerment for 25% of the value of contract to be sourced from Rustenburg, to 30%.
This is meant to ensure that the people of Rustenburg benefit from projects, through job opportunities, skills transfers and meaningful participation in the local economy.
Modalities are underway to ensure compliance. For example, the construction industry will partner with the Municipality to ensure training and that SMME owners are empowered with the process of Grade Levels.
Indigent Register
The Municipal Manager is seized with processes to update the list of households and community members who are battling with the effects of poverty.
This is to ensure that they are able to access services. The list currently has 4000 beneficiaries, however the number falls far too short of reality.
In the last few years the global mining industry has been on the decline and in Rustenburg this has led to a hemorrhaging of jobs in the sector with some 30 000 people being retrenched.
Meanwhile, Executive Mayor Khunou says efforts to diversify the economy in order to end the area’s over-reliance on mining were bearing fruits.
Mega-projects include:
R4 billion granite beneficiation venture that has reached final stages with a Chinese consortium. Land has been allocated.
R2 billion has been spent in road infrastructure and the integration of all transport modes in the last five years to ensure seamless movement of people, goods and services.
The Municipality is making great progress on a bus rapid transport (BRT) system. Named Yarona ™ - It is Ours in SeTswana – the system will provide the people with safer, faster, affordable, efficient and environmentally friendly public transport service.
It will ensure the seamless movement of large numbers of people to all parts of the city quickly and safely.
Enablers for investment and trade:
A project in partnership with the private sector for bulk electricity supply capable of taking care of a minimum 20 years energy requirement,
Bulk water services in partnership with Magalies Water and Pilanesberg Water to provide an additional 30 mega litres of water per day (30 million litres).
This is over and above upgrades to the Municipality’s own water services trust. Bospoort Water Works facility to be upped from 12 mega litres to 24 mega litres.
The mining sector accounts for 70% of Rustenburg’s economy, and the area still has huge platinum group metals (PGM) reserves, which Cllr. Khunou estimates to have a life span of between 20 -30 years.
Rustenburg is promoting joint ventures between local companies and global investors across the PGM value chain in extraction, refining and beneficiation.”
Beneficiation industry:
A special economic zone (SEZ) is being set up. Land has been allocated. The SEZ has a bevy of incentives including tax concessions, access to business loans and grants and specialised factory shells.
And inter-modal logistics hub is earmarked to support all other sectors of the economy.
This will also feature a ‘Mining Supplier House’ of goods and services.
Spending of a reasonable and agreed upon percentage of profits from mining houses on skills development, enterprise development for SMMEs and on community development projects.
Agri-business growth:
Investment of R 30 million in Phatsima vegetable production project.
Land allocated to construct a fully-fledged Fresh Produce Market.
R30 million investment in the Marikana Agro-hub. This is part of the presidential intervention in Marikana.
Education:
The municipality is collaborating with the mining sector to build a university of technology.
Work is progressing to build a number of Technical Vocational Education and Training (TVET) colleges to boost entrepreneurship, skills for industry.
Considerable investment to embrace 4th Industrial Revolution that brings breakthroughs in computing power, connectivity, artificial intelligence (AI), biotechnology and other innovative technologies.
Tourism:
Platinum Theme Park to be built to give visitors an experience in mining shaft tours and the life of miners.
Due to over subscription of conferencing, convention and entertainment facilities in the area collaborations with industry players are being pursued for such projects to benefit the entire continent.
One stop cultural village exploring the historical interactions of the traditional authorities, communities with settlers and development of tourism routes.
Partnership with Sun City, Pilanesberg Nature Park, and private sector tourism concerns.
Ease of Doing Business and Service Excellence:
Within four months publicise its service standards, deliverables and turn-around times, and treat all customers whether residents, visitors, investors with the same level of professionalism and transparency.
Consequences based performance monitoring and evaluation. Proper skills audit, staff qualification audit and incentive scheme.