Download Minutes : 2017-01-25 - Newcastle Municipality

NEWCASTLE MUNICIPALITY
MINUTES OF THE SPECIAL MEETING OF THE NEWCASTLE
MUNICIPAL COUNCIL HELD IN THE CONFERENCE ROOM,
SHOW HALL, HARDWICK STREET, NEWCASTLE ON
WEDNESDAY, 25 JANUARY 2017 AT 14:00
Special Council : 2017-01-25
NEWCASTLE MUNICIPAL COUNCIL
SPECIAL MEETING : 25 JANUARY 2017
ATTENDANCE REGISTER
PRESENT
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
J
V
L
M
E
T
X
B
F
V
T
A
B
V
N
C
F
N
N
A
R
A
S
N
M
H
T
M
R
M
V
T
R
S
M
P
M
N
B
D
D
C
S
E
S
J
T
C
V
L
V
J
J
N
S
P
F
S
V
D
P
Y
A
K
Y
M
N
P
G
G
V
N
P
S
M
V
P
M
B
S
S
F
E
M
C
R
L
J
M
N
B
M
N Khumalo
Bam
Bosman
Buhali
C Cronje
C Danisa
M Dladla
Dlamini
Gama
Hadebe
Hlabisa
Khoza
Khumalo
Kubeka
Kunene
Liu
Malinga
Majozi
Mbatha
Mbuli
Mdluli
Meiring
Miya
Mnguni
Molefe
Mkhwanazi
Mkhwanazi
Mlangeni
Molelekoa
Mthembu
Mzima
Ndaba
Ndima
Ndlangamandla
Ndlovu
Ndlovu
Ngcobo
Ngcobo
Ngema
Ngema
Ngwenya
Nhlapho
Nhlapho
Nkosi
Nkosi
Nkwanazi
Nzuze
Special Council : 2017-01-25
:
Speaker
(ii)
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor
Councillor Dr
Councillor
Councillor
Councillor
Councillor
Councillor
S
M
D
L
S
G
S
M
J
S
M
N
S
T
E
Shabangu
Shunmugam
P
Sibiya
T
Sikhosane
L
Stein
M B Thwala
M
Thwala
W
Twala
A
Vorster
A
Yende
F
Zikhali
S
Zulu
Z
Zulu
M
Zulu
ABSENT WITH APOLOGY
Councillor
Councillor
Councillor
Councillor
D
D
L
A
X
M
G
N
Dube
Sibilwane
Thwala
Zwane
:
:
:
:
other commitments
other commitments
other commitments
other commitments
ABSENT WITHOUT APOLOGY
Councillor
Councillor
A A
S J
Coka
Zulu
Inkosi
Inkosi
C S
B S
Kubheka
Radebe
:
:
Traditional Leader
Traditional Leader
Van Der Byl
Majola
:
:
Auditor-General
Audit Committee
ALSO IN ATTENDANCE
Mrs
Mr
K
S
OFFICIALS PRESENT
Municipal Manager
Strategic Executive Director : DP&HS
Acting Strategic Executive Director : Corporate Services
Acting Strategic Executive Director : BTO
Acting Strategic Executive Director : Technical Services
Director : Administration
Chief Audit Executive
Manager : Executive Support
Manager : Monitoring and Evaluation
Chief Risk Officer
Acting Senior Administrative Officer
Student
Student
Special Council : 2017-01-25
:
:
:
:
:
:
:
:
:
:
:
:
:
Mr
Ms
Ms
Mr
Mr
Mrs
Ms
Ms
Mrs
Mr
Ms
Ms
Mr
B E
N
N
S
L
D R
S
H
N
W
M
N
N
Mswane
Thusi
Vinkhumbo
Nkosi
Zincume
Molefe
Chenia
Manqele
Ticka-Ragunanan
Ndlela
Mduna
Mahlaba
Mthethwa
Page 1
1:
OPENING
The Speaker officially opened the meeting and welcomed all members to the first Council
meeting of 2017. She informed the Council that the month of January is a back to school
month and appreciated the Mayor for the bursary program to support financially needy
students.
She further welcomed the representatives from the Office of the Auditor-General as well as
the Acting Chairperson of the Audit Committee.
She reminded the councillors of the ward committee inauguration scheduled for 26 January
2017.
2:
APPLICATIONS FOR LEAVE OF ABSENCE : (CS 3/1/4/1)
The meeting was informed that the following councillors had given notice to the effect that it
would not be possible for them to attend the meeting :D X
D M
Dube
Sibilwane
L G
A N
Thwala
Zwane
L G
A N
Thwala
Zwane
RESOLVED
That Councillors
D X
D M
Dube
Sibilwane
SED:CS(A)
R.N. Mdluli
be granted leave of absence from attending the meeting.
2(a) : MAYORAL FOREWORD
RESOLVED
That the Mayor’s foreword for 2015/2016 as attached per
Annexure “A”, be noted.
***
MM
2(b) : AUDITOR-GENERAL’S REPORT
After a presentation by the Office of the Auditor-General, the Speaker gave each party an
opportunity to comment, whereafter
Kim van der Byl of the Office of the Auditor-General acknowledged the responsibility taken
by the Mayor, who only took over in August 2016 and the Accounting Officer who was
appointed in January 2016.
The Municipal Manager assured the Council that all issues raised by the Auditor-General are
on the action plan to be monitored by management and Council on a monthly basis.
Special Council : 2017-01-25
Page 2
The Mayor stressed the importance of using the guidelines provided by Auditor-General’s
report to work towards a clean audit, he informed Council that an investigation will be
conducted on the issue of irregular expenditure and a report submitted to Council. He urged
Council to expedite the filling of senior management positions.
NOTED
2(c) : AUDIT COMMITTEE
The Acting Chairperson of the Audit Committee, Mr. S. Majola presented a report on the
Audit Committee.
NOTED
3:
ANNUAL REPORT : 2015/2016 : (MM 2/1/2)
The Manager : Monitoring and Evaluation presented the non-financial report and the Acting
Chief Financial Officer presented the financial report, whereafter, it was
RESOLVED
(a)
That the Annual Report 2015/2016 as presented,
including all components as specified, be noted;
(b)
that the report by the Auditor-General for the financial
year ended 30 June 2016 be noted;
(c)
that the report of the Audit Committee for the financial
year ended 30 June 2016 be noted;
(d)
that the Annual Report 2015/2016 of the entity uThukela
Water (Pty) Ltd, be noted;
(e)
that the action plan on the report of the Auditor-General
for 2015/16 be noted - with monthly progress reports to be
submitted to Executive Committee, Audit Committee and
Municipal Public Accounts Committee for monitoring
thereof;
(f)
that the Annual Report 2015/16 be advertised for public
consultation and further consideration by the Municipal
Public Accounts Committee through its Oversight Report.
Special Council : 2017-01-25
MM
Page 3
4:
URGENT MATTERS/ ADDITIONAL ITEMS
(i)
Mid-year performance assessment 2014/2015 : (MM 2/1/2)
RESOLVED
(ii)
(a)
That the Mid-Year Performance assessment for the
period ending 31 December 2016, submitted in terms of
section 72 of the Municipal Finance Management Act
(Act 56 of 2003) be noted for onward submission to
National and Provincial Treasury;
(b)
that Directorates re-align the Mid-Year Review to
Monthly Projections of expenditure on the Operational
and Capital budget based on the Mid-year assessed
SDBIP’s and Adjustment Budget as approved by Council
in December 2016;
(c)
that as a key intervention area, monthly capital status
reports be presented to the Executive Committee - after
technical assessment by the Performance Management
Unit - and that a special Executive Committee be
convened for this purpose;
(d)
that the Strategic Executive Directors comply with
monthly reporting & monitoring requirements to ensure
compliance with all targets by using the PMS checklist
compiled for this purpose;
(e)
that internal project management processes be
improved to ensure effective implementation of the
capital program;
(f)
that the gaps identified in terms on non-alignment of
cash flow projections to the budget be corrected by
departments and Budget and Treasury Office in line with
the approved adjustment budget;
(g)
that the progress report on resolving issues in the
Annual Report 2014/2015, be noted;
(h)
that the Mid-Year Budget Review (as presented by the
Chief Financial Officer) and the recommendations
contained therein be approved for preparation of the
adjustment budget for the 2016/2017 financial year and
the revision of the SDBIP’s accordingly.
SED:BTO
E.M. Nkosi
Section 52(d) : Quarterly report on budget implementation : Reporting
standard : Quarter ended 31 December 2016 : (BTO 6/1/1 - 2016/2017)
The Manager: Monitoring and Evaluation presented a report on budget
implementation.
Special Council : 2017-01-25
Page 4
The Municipal Manager acknowledged the issues raised and reported that the
Executive Committee took a decision to address the issues of debt collection in
Madadeni and Osizweni. He, however, mentioned that councillors and officials
owing the municipality should be exemplary and pay their debt.
RESOLVED
(iii)
(a)
That Council notes the monthly budget statement and
any supporting documentation for the period ended 31
December 2016;
(b)
that the Strategic Executive Directors at all times remain
within the financial guidelines of the Municipal Finance
Management Act;
(c)
that the Strategic Executive Directors commit
themselves to maintaining a credible budget target for
revenue and expenditure;
(d)
that the Strategic Executive Directors acknowledge the
significance of the 2016/2017 approved capital budget
as a service delivery barometer.
SED:BTO
E.M. Nkosi
Section 72 : Mid-year budget and performance assessment :
(BTO 6/1/1 - 2016/2017)
RESOLVED
(a)
That the mid-year review for the period ended 31
December 2016, be noted and approved;
(b)
that, based on the variances presented between the
approved budget and actuals for the first half of the year,
an adjustment budget is necessary;
(c)
that, subject to approval of recommendation (b) above,
the Accounting Officer be mandated to prepare and
submit the adjustment budget to Council for
consideration;
(d)
that the Accounting Officer be mandated to submit the
mid-year adjustment assessment report to National and
Provincial Treasuries as required by S72(1)(b) of the
Municipal Finance Management Act, Nº. 56 of 2003;
(e)
that departmental budgetary requirements be dealt with
administratively and addressed in terms of the approved
virement policy;
(f)
that any transfers between votes be dealt with through
an adjustment budget to be submitted in terms of (c)
SED:BTO
Special Council : 2017-01-25
E.M. Nkosi
Page 5
above or be submitted to the Executive Committee is
considered to be urgent.
SED:BTO
E.M. Nkosi
ANNOUNCEMENTS
The Speaker extended an invitation by the MEC for CoGta to all councillors for the launch of the
back to basics to be held on 27 January 2017 in Pietermaritzburg.
CONCLUSION OF MEETING
There being no further business to discuss, the meeting concluded at 16:14.
CONFIRMED
_______
DATE
Special Council : 2017-01-25
_____________
CHAIRPERSON