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2019/20

Annexure A: Quarter 1 Performance Report

ANNEXURE A 12

1

Table of Contents

1 Purpose .......................................................................................................................................... 2

2 Performance on Service Delivery Targets ...................................................................................... 2

2.1 Performance against SDBIP targets ........................................................................................ 2

2.1.1 Background ....................................................................................................................... 2

2.1.2 Quarter 1 SDBIP performance summary ........................................................................... 2

2.1.3 Quarter 1 SDBIP performance per pillar ............................................................................ 9

2.1.4 Quarter 1 SDBIP performance per cluster ......................................................................... 9

2.1.5 Quarter 1 SDBIP performance per department ................................................................. 9

3 Performance of Municipal Entities ................................................................................................ 11

3.1 Summary of Quarter 1 performance for the municipal entities ................................................... 11

CONCLUSION .................................................................................................................................... 11

List of tables

Table 1: Detailed SDBIP scorecard ....................................................................................................... 3

Table 2: Statistical summary of Quarter 1 performance per pillar ......................................................... 9

Table 3: Statistical summary of performance per cluster ...................................................................... 9

Table 4: Statistical summary of Quarter 1 performance per department ............................................... 9

Table 5: Summary of Quarter 1 performance for the municipal entities .............................................. 11

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1 PURPOSE

The purpose is to report to Council the –

1.1 unaudited performance of the City against the approved Service Delivery and Budget Implementation Plan (SDBIP)

targets set for Quarter 1 of the 2019/20 financial year in line with section 52(d) of the Municipal Finance

Management Act, 2003 (Act 56 of 2003) (MFMA); and

1.2 unaudited performance of the Municipal Entities against targets set for the Quarter 1 of the 2019/20 financial year

in line with their approved Business Plans.

2 PERFORMANCE ON SERVICE DELIVERY TARGETS

2.1 Performance against SDBIP targets

2.1.1 Background

The SDBIP for the 2019/20 financial year was approved by Council on 30 May 2019 as part of the 2019/20 Integrated Development Plan (IDP) review.

The approved SDBIP is made up of 33 performance indicators and targets. A total of 24 targets were due for reporting at the end of Quarter 1 of the 2019/20 financial year.

City Strategy and Organisation Performance Management Department is therefore responsible for the planning, monitoring and preparation of performance reports detailing the progression of indicators in achieving their stipulated target as required by legislation.

It should be noted that the aforementioned SDBIP information was not audited as such processes requires additional timeframes which are beyond the legislated period for reporting and therefore cannot be accommodated at this stage of performance reporting.

2.1.2 Quarter 1 SDBIP performance summary

This performance summary is based on the 24 indicators and their corresponding targets in the SDBIP that were due for

reporting at the end of the quarter under review. The performance was recorded as follows:

A total of 16 targets were achieved (from the 24 targets due for reporting at the end of quarter one). This accounts

for 66,67% target achievement while eight targets were not achieved, translating to 33,33% negative variance.

Legend:

Achieved targets and KPIs showing positive progress are highlighted in green.

Non-achieved targets are highlighted in red.

Performance recorded without planned targets for the quarter are highlighted in yellow.

KPIs which do not have targets for the quarter and are therefore not reportable are highlighted in blue

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Table 1: Detailed SDBIP scorecard

Strategic Pillar

Cluster Department Key Performance

Indicator Annual target Q1 Target Q1 Actual Variance Rating

Q1 Reasons for target non-achievement

Q1 Mitigation Plan

Pillar 3: A City that delivers

excellent services and protects the environment

Chief Operating

Office

Utility Services

Department (Water and Sanitation)

Number of households in formal areas with access to water (new metered connections)

10 000 new connections for the year

2200 741 -1459

Delayed by the community - They demand that RDP Houses, roads and Schools be built first before they can allow water meters to be installed. Waiting for Housing MMC to address them.

MMC Housing to address the community with regards to housing, roads, schools and clinic as soon as possible



Chief Operating

Office

Human Settlements

Number of households in formal areas with access to water (new metered connections)

4 332 new connections for the year

- 0 -

N/A. Summary of work in progress is as follows: Excavation, bedding, pipe laying, blanket and backfilling.

N/A. The target will be achieved in Quarter 4 as planned.



Chief Operating

Office

Environmental and

Agricultural Management

Number of formalised areas provided with weekly waste removal services

100% 100% 100% -

N/A N/A



Chief Operating

Office

Utility Services


Number of households with access to sanitation (new sanitation connections)

570 new connections for the year

0 0 -

N/A N/A



Chief Operating

Office

Human Settlements

Number of households with access to sanitation (new sanitation connections)

7032 new connections for the year

- 0 -

N/A. Summary of work in progress is as follows: Excavation, bedding, pipe laying, blanket and backfilling.

N/A. The target will be achieved in Quarter 4 as planned.

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Chief Operating

Office

Utility Services

Department (Electricity

and Energy)

Number of formal households with access to electricity

7100 new connections for the year (EFA 5500

and application

driven 1600)

900 507 -393

Quarterly target for New Electricity Connections provided/ completed in formalised areas realised total of 429 connections (July 163; August 121 & Sept 145) against set target of 300. Number of houses electrified to eradicate backlogs (EFA) reported 78 (71 - EFA for July, 0 for August & 7 Sept 2019) connections energised against quarterly target of 600. EFA under achieved due to unavailability of Construction Tender (Tender USD EE 15 2018/19).

Work will commence and the required performance levels achieved once the construction tender for houses electrified to eradicate backlogs (EFA) is finalised.



Chief Operating

Office

Roads and Transport

Kilometres of required municipal storm water drainage network provided

30 km for the year

1 km 3.986 km 2.986 km

N/A N/A



Chief Operating

Office

Roads and Transport

Kilometres of roads provided to the required standard

30 km for the year

1 km 3.60 km 2.60 km

N/A N/A



Chief Operating

Office

Roads and Transport

Kilometres of completed Tshwane Rapid Transit Bus lanes constructed and Intermodal Facilities

80% overall completion of

the Capital Park Bridges and BRT lane

20% overall completion

of the Capital Park Bridges and

BRT lane

30% overall completion

of the Capital Park

Bridges and BRT lane

10% additional

performance level

achieved compared to

planned target

N/A N/A



Chief Operating

Office

Human Settlements

Kilometres of roads and storm water provided to the required standard

36.5km - 0 -

N/A N/A. The target will be achieved in Quarter 4 as planned.



Chief Operating

Office

Regional Operations

and Coordination

Number of informal settlements with access to rudimentary water services

134 informal settlements


182 informal

settlements 48

N/A N/A

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Chief Operating

Office

Regional Operations

and Coordination

Number of informal settlements with access to rudimentary sanitation services




11

N/A N/A



Chief Operating

Office

Human Settlements

Number of informal settlements formalised

8 - 0 -

N/A N/A. The target will be achieved in Quarter 4 as planned.

Pillar 1: A City that facilitates

economic growth and job

creation

Chief Operating

Office

Community and Social

Development Services

Number of new income-earning opportunities facilitated by the City

27 000 for the year

8000 3959 -4041

The second round registration database is currently taking place in order to increase the capacity of the database to enhance job creation. The figure reported does not include September 2019 information as it will be ready towards the end of October 2019 or beginning of November 2019.

Improved project management and an increase in funding for such projects and other initiatives that create job opportunities are required in order to improve performance for this KPI. Owing to the target being distributed to the various departments in the City, the individual departments needs to be engaged to ascertain the extent of challenges and strategy in improving the employment opportunities by the City.



creation

Governance Support Office

Economic Development and Spatial Planning

Rand value investment attracted to the city (annual)

R2.6 billion for the year

- 0 -

N/A N/A



creation



Number of Co-operatives supported through different development programmes

280 for the year

70 76 6

N/A N/A

Pillar 2: A City that cares for residents and

promotes inclusivity

Chief Operating

Office Health

% of City of Tshwane PHC fixed clinics providing immunisation for children under 1 year of age

100% 100% 100% -

N/A N/A



Chief Operating

Office Health

% of City of Tshwane PHC fixed clinics implementing PMTCT programme

100% 100% 100% -

N/A N/A

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Chief Operating

Office Health

% of City of Tshwane PHC fixed clinics providing HIV testing facilities for pregnant woman

100% 100% 100% -

N/A N/A

Pillar 4: A City that keeps

residents safe

Chief Operating

Office



Number of indigent households supported by the City through its social packages

5 000 additional

households for the year

1500 498 -1002

The implementation of the 2019/20 indigent policy has included the households whose property market value does not exceed R150 000; they are automatically registered as indigent and are reducing our targeted eligible indigent households.

Indigent registration road shows will be implemented to breach the negative variance.


residents safe

Chief Operating

Office



Number of indigent households exited from the indigent register

4 000 households to be exited from

the register

1000 1254 254

N/A N/A


residents safe

Office of the City

Manager

Emergency Services

Percentage of compliance to the required attendance times for structural firefighting incidents

Attend to 75% of structural fires in built-

up areas within 14

minutes or less from time

of call

75% 79.57% 4.57%

N/A N/A


residents safe

Office of the City

Manager

Emergency Services

Percentage of compliance to the required attendance times for dispatched Priority 1 emergency medical incidents

Attend to 65% of Priority 1 dispatched

calls in built-up areas within 15

minutes or less from time

of call

65% 68.42% 3.42%

N/A N/A


residents safe

Office of the City

Manager

Emergency Services

Number of new fire stations constructed to reduce backlog

50% completion of construction of station 21 (Mamelodi)

- 3.24% 3.24%

N/A N/A


residents safe

Office of the City

Manager

Emergency Services

Number of municipal critical infrastructure plans that are in place to deal with impending and actual disasters

6 approved CICPs

1 1 0

N/A N/A

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residents safe

Office of the City

Manager

Tshwane Metro Police

Percentage increase in interventions to root out crime and related incidents (annual)

1% increase on previous year (2 820)

703 823 120

N/A N/A

Pillar 5: A City that is open, honest and responsive

Office of the City

Manager

Office of the City Manager

Unqualified Audit Opinion achieved (annual)

Unqualified Audit Opinion

N/A N/A

N/A N/A


Office of the City

Manager

Group Finance Services

Cost coverage 2 1 0.8 -0.2

The result of this ratio is 0.8 (80% of the CoT target of 1 month). This is a negative result which management has noted and has already put plans in place. A critical factor in this plan is to uplift the City's debtor’s collection levels at 95% as opposed to the current collection level of 79%.

Detailed plan not provided, however a mitigating initiative will be implemented to rectify the low performance levels in order to improve the financial sustainability of the City.


Office of the City

Manager


Debt coverage 15% 15% 19.70% 4.70%

N/A N/A


Office of the City

Manager


Service debtors to revenue

25% 25% 107% -82%

The computation of Services is not correct and this was realised much later after the report was finalised.

This error will be rectified in the next report.


Chief Operating

Office

Utility Services


Percentage reduction of non-revenue water over five years

28% 29.50% 34.10% -4.60%

Real losses account for 80% of the total water losses, while apparent losses account for 20%. The main drivers of real losses in the CoT are: • aged infrastructure and poor response times to repair leaks. • under capacitated in terms budget allocation and human resources

The City is therefore focusing on the reduction of total water losses, without neglecting apparent losses. The following are targeted remedial actions: • To improve turnaround times • To increase budget allocation and increase the capacity in terms of In addition to the above, it should be noted that the performed result is not final as estimates was utilised in the interim until final data could be obtained for the calculation.


Chief Operating

Office

Utility Services

Department (Electricity

and Energy)

Percentage average of annual non-revenue energy

≤19% ≤20.21% 30.00% 9.7900%

The reasons for non-achievement of the planned target are due to the following:

• The process of capturing meters into accounts from the old smart meter project is ongoing and should be finalised by end of November 2019.

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• High number of unmetered accounts from the old smart meter project. • Illegal connections in formal and informal areas. • The sales report has not been finalised to reflect the actual sales for the quarter.

• There is a programme to remove illegal connections that is underway. In addition to the above, it should be noted that the performed result is not final as estimates was utilised in the interim until final data could be obtained for the calculation.



Group Human Capital

Management

Percentage employee satisfaction rating (annual) (not applicable this year)

Not applicable in 2019/20. Department

will be monitoring

action plans based on the

findings of 2018/19 survey

N/A N/A N/A

N/A N/A

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2.1.3 Quarter 1 SDBIP performance per pillar

The table below summarises the performance per pillar for the quarter under review.

Table 2: Statistical summary of Quarter 1 performance per pillar

Assessment

Criteria



creation






residents safe


Total number of

targets 3 3 13 7 7

Number of

targets

applicable for

Q1

2 3 8 6 5

Number of

targets achieved 1 3 6 5 1

Number of

targets not

achieved

1 0 2 1 4

2.1.4 Quarter 1 SDBIP performance per cluster

The table below summarises the cluster performance for the quarter under review.

Table 3: Statistical summary of performance per cluster

Assessment Criteria COO Cluster GSS Cluster CM Cluster

Total number of targets 21 3 9

Number of targets

applicable for Q1 16 1 7

Number of targets

achieved 10 1 5

Number of targets not

achieved 6 0 2

2.1.5 Quarter 1 SDBIP performance per department

Although the City has a total of 23 line function departments, only 13 departments have targets on the corporate scorecard

(SDBIP). The table below summarises the performance recorded by each individual department over the period under

review.

Table 4: Statistical summary of Quarter 1 performance per department

Department Total Number of

Targets for 2019/20FY

Targets Due for

Reporting at end of Q1

Targets Achieved

(Q1)

Targets not Achieved

(Q1)

Office of the City

Manager 1 0 N/A N/A


Development 3 3 1 2

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Department Total Number of

Targets for 2019/20FY

Targets Due for

Reporting at end of Q1

Targets Achieved

(Q1)


(Q1)

Emergency

Management Services 4 3 3 0

Tshwane Metro Police 1 1 1 0

Economic Development

and Spatial Planning 2 1 1 0

Group Finance Services 3 3 1 2

Environmental and

Agricultural

Management

1 1 1 0

Health 3 3 3 0

Human Settlements 4 0 N/A N/A

Regional Operations &

Coordination 2 2 2 0

Roads and Transport 3 3 3 0

Utility Services 5 4 0 4

Group Human Capital

Management 1 0 N/A N/A

Totals 33 24 16 8

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3 PERFORMANCE OF MUNICIPAL ENTITIES

3.1 Summary of Quarter 1 performance for the municipal entities Municipal entities are separate legal entities headed by a Board of Directors delivering certain services to the communities

in Tshwane on behalf of the City. The City has two municipal entities, i.e. Housing Company Tshwane (HCT) and Tshwane

Economic Development Agency (TEDA), which are bound by shareholder agreements to assist the City realise its

development objectives. Therefore, in each financial year, municipal entities develop business plans which are approved by

Council.

This section of the report presents the performance of the municipal entities against their commitments in their business

plans in Quarter 1 of the 2019/20 financial year.

Table 5: Summary of Quarter 1 performance for the municipal entities

Entity Total Number of Targets

for 2019/20 FY

Targets Due for

Reporting at end of Q1 Targets Achieved (Q1)


(Q1)

TEDA 27 16 16 0

Housing Company Tshwane

13 11 6 5

In the 2019/20 financial year, TEDA has a total of 27 targets and 16 were due for reporting at the end of the quarter

under review.

o All 16 targets due for reporting were achieved, translating to 100% target achievement

In the 2019/20 financial year, HCT had a total of 13 targets and 11 were due for reporting at the end of the quarter under

review:

o Of the 11 targets committed to, six were achieved, translating to 54,54% target achievement, and five were not

achieved, translating to 45,45%.

For more details on the statistics above, please refer to Annexure B and C of this report.

CONCLUSION

The City must implement tailored improvement plans based on the areas where performance recorded did not meet the

expectation as per the targets set for the period under review. Each affected line function department and entity must

implement performance improvement plans to mitigate against the root causes of the negative variances/ deficiencies on

targeted performance.

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HCT Q1 PERFORMANCE REPORT

2019-2020

OFFICE OF THE CHIEF EXECUTIVE OFFICER

CHIEF EXECUTIVE OFFICER

Ms. Lufuno Mudau CA (SA)

SIGNATURE: _______________________________

DATE: 04 October 2019

ANNEXURE B 24

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TABLE OF CONTENT

1. EXECUTIVE SUMMARY 3

2. PERFORMANCE AGAINST THE ENTITY’S DEPARTMENTAL BUSINESS PLAN 6

2.1 SUMMARY OF PROGRESS AGAINST ENTITY’S BUSINESS PLAN TARGETS 7

3. PERFORMANCE AGAINST THE CORPORATE SDBIP 14

3.1 PERFORMANCE AGAINST THE SDBIP TARGETS 14

3.2 SUMMARY OF PROGRESS ON PROJECTS 14

4. PERFORMANCE ON THE 180 AND 18 MONTH PROGRAMME 16

5. FINANCIAL PERFORMANCE 16

5.1.1 SUMMARY OF FINANCIAL OPERATION RESULTS 16

5.1.2 OPERATING REVENUE 16

5.1.3 RENTAL INCOME 17

5.1.4 OPERATING GRANT 17

5.1.5 OTHER INCOME 17

5.1.6 CAPITAL GRANT TRANSFERS 17

5.2 OPERATING EXPENSES 17

5.2.1 EXPENDITURES 17

5.2.2 EMPLOYEE RELATED COSTS 18

5.2.3 REMUNERATION OF DIRECTORS 18

5.2.4 DEPRECIATION 18

5.2.5 FINANCE CHARGES 18

5.2.6 CONTRACTED SERVICES 18

5.2.7 OTHER EXPENDITURES 18

5.2.8 OTHER MATERIALS 18

5.3 CASH FLOW 19

5.4 STATEMENT OF FINANCIAL POSITION 19

5.5 IRREGULAR, FRUITLESS AND WASTEFUL EXPENDITURE 19

6. GOVERNANCE 19

6.1 BOARD COMPOSITION 20

6.2 BOARD AND COMMITTEE MEETINGS 20

6.3 DIRECTORS REMUNERATIONS 20

6.4 RISK MANAGEMENT AND INTERNAL CONTROLS 20

6.5 HUMAN RESOURCES 20

6.6 STRATEGIC AND INTERNAL CONTROLS 22

7. DEPENDENCIES AND CROSS CUTTING ISSUES 23

8. OPERATION CLEAN AUDIT 24

9. CONCLUSION AND RECOMMENDATIONS 25

ANNEXURES

ANNEXURE A: STATEMENT OF FINANCIAL POSITION AND FINANCIAL PERFORMANCE 26

ANNEXURE B: RISK REGISTER 34

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EXECUTIVE SUMMARY

Social Housing plays a critical role in South Africa where it caters for low to moderated income

households, who do not qualify for low cost housing, nor are able to obtain financing to purchase new

homes. It is thus able to provide good quality rentals for the missing middle. When successfully

implemented, it becomes a primary instrument to address the spatial indifferences of the past by the

provision of accommodation close to work opportunities, public transport and social facilities.

As a social housing institution HCT is required to register with Social Housing Regulatory Authority

(SHRA); a conditional accreditation was obtained from the SHRA, which will be in place from the period

May 2019 until May 2021.

Project development

The entity currently has two projects under construction, Townlands and Chantelle. The Chantelle x39

project encountered challenges in the late shutting down of the reservoir, which was only done on 27

September 2019 by the City. The late shutdown influenced the project, as it entails bulk water

infrastructure upgrades and the water supply had not yet flowed into the new pipes. The project was

thus 96% completed at the end of quarter 1.

Townlands is experiencing delays due to the slow production of the SMME brickwork. The contractor is

engaging with the project steering committee to take over the works so that the entity can achieve on

its targets. Alternative work will have to be allocated to the community. The appointment of the Phase

2 contractor was concluded unfortunately the successful bidder withdrew from the bid. Management is

in the process of re-tendering the phase two project, which is for the delivery of 491 units. 98 units were

expected to be delivered in Quarter 1 and 0 units were delivered.

Figure 1: Progress on Townlands

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Figure 2: Progress on Chantelle

The entity receives funding from the SHRA for capital projects and gap funding from the City, a notarial

deed is required between the HCT and SHRA as one of the contractual conditions, it is important that

the City’s legal department assists the HCT in fast tracking the process to ensure continued investment

in capital projects by the SHRA.

Property management

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The HCT sustained a 98% occupancy rate for all property under its management. This will continue to

be achieved by ensuring that the turnaround time to allocate new units is completed within a month of

the unit being vacant.

The spend on repairs and maintenance will be improved by the appointment of a panel of service

providers who will be responsible for the supply and delivery of various inventory required for the

maintenance and up keep of the units.

Maintenance complaints were addressed within the turn around time of 48 hours , 99% of the time. This

was because of maintenance staff being insourced.

The strategic turnaround plan of HCT, which was approved by the board in June 2018, included the

transfer of 562 units from the Group Property as per discussions with the City. Of the 562 units, only 215

will transferred for ownership. The entity had discussions with the property management division and a

report will be tabled to council where the 147 units for management will no longer be made available to

the entity but will be kept to assess the best use of these properties by the City to derive maximum

financial performance for it. This affects the project pipeline of the entity and further the projected

revenues that would have been expected from managing these units. 200 units of the 562 have been

identified for sale by the City as per a 2016 council resolution.

Human resources

The entity has appointed a CFO who started on the 1 October 2019. Only one executive position, that of

the COO remains to unfilled. The ruling of the arbitrator relating to the COO matter has been referred to

the labour court for review. The position will only be filled once all legal issues surrounding the post are

resolved.

The interview process of the Human Resource Manager, Program Development Manager and further

the SCM specialist was completed and the encumbents are expected to start in November 2019.

The entity has appointed a service provider to finalize the grading process of the entity, where in which

the placement of permanent staff into the new salary scales will be negotiated with the unions and a

proposal tabled at the board sitting of October 2019.

Financial performance

The entity has an accumulated year to date surplus of R 6, 8 million. The revenue collected for property

under management was lower than expected as 550 units from Nelmapius ext 22 were expected to be

transferred to the entity from province through the City, which has not been done.

There was an under spend of R 3, 9 million in salaries due to vacancies within the structure which is

currently sitting at 51%.

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Overall, the entity achieved six out of its 11 targets in Quarter one, which is mainly due to the low

expenditure of its repairs and maintenance budget, Townlands project and further the collection rate of

levies at Clarina estates.

A panel of service providers for the supply and delivery of inventory will be appointed in Quarter 2 and

further the Townlands contractor will be monitored to ensure that critical areas of the project are not

outsourced which can affect the delivery of the project as indicated above.

1. PERFORMANCE AGAINST THE ENTITY’S DEPARTMENTAL BUSINESS PLAN

In terms of the Social Housing Act, 2008 (Act 16 of 2008), the City of Tshwane Metropolitan Municipality

(CoT), does not qualify to implement social housing. However, the City creates the milieu and facilitates

the environment for the delivery of social housing units. Within that, the social housing grants can thus

only be accessed by accredited social housing institutions. Social housing institutions must adhere to

the general principles laid down in the Housing Act, 1997 (Act 107 of 1997). Moreover, the entity must

comply with Part 1 Section 2 and further subsequent legislation such as the Housing Rental Act, 1999

(Act 60 of 1999). In addition, the act must be read in conjunction with the White Paper on Housing (1994),

the Urban Development Framework (1997) and with the National Housing Code.

The HCT targets are in line with the City’s Strategic Pillars, specifically:

- A City that facilitates economic growth through its contribution to spending at least 40% of its

expenditure on SMME’s and BBBEE qualifying service providers and contractors

- A City that cares for residents and promotes inclusivity through the execution of its mandate, by the

provision of affordable rentals in and around the City through its current rental stock and with its

ongoing greenfield projects

- A City that delivers excellent services and protects the environment, through the maintenance and

refurbishment of property under its management and building a good relationship with tenants

- A City that is open, honest and responsive through ensuring that critical positions be filled to deliver

on its mandate and further managing and monitoring its strategic and operational risks

The entity did not perform as well as expected with only 55% of its Quarter one targets being achieved.

The entity will be filling the position of SCM specialist in November 2019 to drive efficiency within the

SCM division and further the efficient implementation of the HCT approved procurement plan. This will

assist in addressing underspending in operational expenditure.

A CFO was further appointed to drive the strategic financial management of the entity by ensuring that

the entity is financial ratios exceed the norm and a working capital strategy is developed and

implemented.

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The collection rate at Clarina is worsening as tenants continue not to pay their levies and influence each

other. A consistent resolution needs to be met with the City on what will happen with all former Shubert

Park residents who have been placed in various buildings across the City, which includes Clarina

1.1 SUMMARY OF PROGRESS AGAINST ENTITY’S BUSINESS PLAN TARGETS

Table 1: Summary of performance against the business plan

Total No of targets for

the financial

year

Number of targets for the

quarter

No of targets not achieved for the

quarter

No of targets achieved for the quarter

No of targets not achieved year to

date

No or targets achieved year to

date

13 11 5 6 5 6

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Table 2: Business plan targets

Division Focus Area Key Performance

Indicator

2019/20Target Baseline Project Name Quarter 1 Target

Quarter 1 Actual

Management comments

Mitigation plan

Pro

pe

rty D

eve

lopm

en

t

Deliver and provide new affordable rental units

Number of new social housing units developed

450 units 0 Units Townlands 98 Units 0 Units

Not Achieved

The contractor is behind schedule due the slow progress on SMME production. There has also been a delay in the delivery of the Precast slabs. The contractor has allocated all the brickwork to local subcontractors, which is affecting highly on the delivery and the targets. The target will still not be achieved and the contractor indicated that the target would be achieved in December 2019. The appointment for the Phase 2 was awarded, and the successful bidder withdrew.

There are blocks that are due to receive slabs on the 28 August 2019, the contractor has been requested to take over the blocks and complete the brickwork in order to recover on the time lost. A meeting with the PSC is being scheduled to discuss performance of the SMME’s and risk factors affecting the project. Management is in the process of re-advertising phase 2.

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Indicator


Quarter 1 Actual

Management comments

Mitigation plan P

rop

ert

y M

an

age

men

t

Deliver services by developing and managing affordable rental housing in the City of Tshwane.

Occupancy rate as a % of housing units under management

97% 97%

All stock under property management

97% 98%

Achieved

The entity maintains a waiting list of potential tenants who are contacted when a vacancy exists within the properties. They are then verified on TPN to ensure that they have the capacity to pay their rentals

N/A

% of repairs and maintenance budget spent at Entity owned building. Eloff Gebou (95 units)

90% of annual budget

New Eloff Gebou 25% 0.04%

Not Achieved

The performance against budget expenditure is low due to the absence of the panels (supply & delivery of the building materials and Repairs & Maintenance service providers)

1. The procurement process for the panel of the delivery of the building materials and Repairs & Maintenance service providers is underway, and it’s expected to be finalised by end of Q2

2. Issue out a RFQ’s for the 25% of the budget while HCT is finalising the procurement processes of the panels.

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Indicator


Quarter 1 Actual

Management comments

Mitigation plan

% of repairs and maintenance budget spent at buildings managed by the Entity on behalf of the City of Tshwane.

90% of annual budget

60%

All Self-sufficient Elderly Schemes Clarina Estates Norkempak Hercules

25% 0.07%

Not Achieved

The performance against budget expenditure is low due to the absence of panels for the supply and delivery of inventory required for maintenance

1. The procurement process for the panel of the delivery of the building materials and Repairs & Maintenance service providers is underway, and it’s expected to be finalised by end of Q2 2. Issue out a RFQ is for the 25% of the budget while HCT is finalising the procurement processes of the panels.

% of maintenance complaints case files closed within turnaround times

80% 80%

All stock under property management

80% 99%

Achieved

Maintenance complaints are logged and referred to the maintenance supervisor as and when received. These are then addressed within 48 hours of receipt.

N/A

Fin

ance

& S

CM

Revitalize Urban growth/dismantling poverty and inequality

% of goods and services procured from BBBEE compliant entity’s and SMMEs

40% of total expenditure

31% Goods and services

33% 81.89%

Achieved

Capex spending on the BEE & SMME contributed 63.12% hence the over achievement on the budget

N/A

Stabilize service delivery through the development and implementation of an Integrated

Manage budget processes of the entity in accordance

95% of the annual budget spent

90% Budget management

25% 77.28%

Achieved

N/A

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Indicator


Quarter 1 Actual

Management comments

Mitigation plan

Affordable Rental Housing Strategy

with regulatory frameworks

Capex spending contributed 84% and Opex 16% hence the over achievement on the target.

Stabilize processes to ensure increase in rental revenue.

Rental revenue collected as a percentage of amount billed

95% 90% Eloff 95% 98.84%

Achieved

The credit control function of the entity is effective and further all tenants are pre-vetted before being allocated a unit.

N/a

Rental revenue collected as a percentage of amount billed

96% 89%

Silwerkroon, Oosmoot (Villeria), Capital Park, BeterWag (Claremont 50) & Danville S & D and Danville Flats

96% 101.5%

Achieved

The credit control function of the entity is effective and further all tenants are pre-vetted before being allocated a unit.

N/a

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Indicator


Quarter 1 Actual

Management comments

Mitigation plan

Stabilize processes to ensure increase in levies.

Revenue collected as a percentage of amount billed for levies

30% 22% Clarina 30% 9.71%

Not achieved

Clarina tenants did

not go through the

vetting process of the

entity and most of

them are reluctant to

pay as the City is

paying for the other

ex-Schubart Park

tenants residing in

other buildings.

The matters have been

tabled to the housing

tribunal and the Entity

is working with the City

to have these tenants

evicted.

The City will however need to provide alternative accommodation for tenants as per the housing rental act and further provide them sufficient time to find alternative accommodation

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Indicator


Quarter 1 Actual

Management comments

Mitigation plan

Stabilize service delivery through the development and implementation Integrated Affordable Rental Housing Strategy

Liquidity ratio achieved in line with NT norms

2: 1 2.5: 1 Working capital management

2: 1 Liquidity ratio of 1.61:1

Not achieved

The Entity submitted a claim of R 9 million for its operational grant and the cash has not being received, hence the low liquidity ratio. The entity has been utilising its cash reserves from the 18/19 financial year.

Operational and capital grant claim will be submitted in advance going forward.

Go

ve

rnan

ce

Promote effective and efficient management of HCT and Social Housing portfolio

Internal Governance Structures and Processes reviewed and approved

One annual strategic plan, reviewed and approved by the Board

1 Strategic review

N/A N/A N/A N/A

Number of Reviewed and approved policies

10 Policies reviewed and Approved by the Board.

10 Policy Review & approval

N/A N/A N/A N/A

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2. PERFORMANCE AGAINST THE CORPORATE SDBIP

2.1 PERFORMANCE AGAINST THE SDBIP TARGETS

Not Applicable to the entity.

Table 3: Summary of performance against the SDBIP targets

Total No of targets for the financial year

Nr of targets for the quarter

Nr of targets not achieved for the quarter

Nr of targets achieved for the quarter

Nr of targets not achieved year to date

Nr or targets achieved year to date

N/A N/A N/A N/A N/A N/A

2.2 SUMMARY OF PROGRESS ON PROJECTS

The entity had four Capital projects within its 2019/20 business plan. These were:

1. Chantelle x39

2. Townlands

3. Sunnyside Erf 708 and 709

4. Timberlands

The Chantelle bulk infrastructure upgrade project was delayed due to the shut-down of the reservoir in

Chantelle. The connection has been done and the contractor is finalizing the works. The project will be

completed on 31 October and proclamation process will commence. Management is in the process of

preparing the project for construction of the top structure.

Construction for Phase 1 (691 units) in Townlands has been delayed by the slow progress of the SMME.

The contractor has negotiated with the project steering committee to takeover some of the brick work

so that he can accelerate the production. Management has made an award on the Phase 2 (509) and

the successful bidder withdrew. Due the expiry of the tender validity period, management was left with

no choice but to re-tender the project.

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Table 4: Project performance

No Project Name Q1 Target Actual Management comments Mitigation plan

1. Townlands 98 completed units

0

The contractor is behind schedule due the slow progress on SMME production. There has also been a delay in the delivery of the Precast slabs. The contractor has allocated all the brickwork to local subcontractors which is impacting highly on the delivery and the targets. The target will still not be achieved and the contractor indicated that the target would be achieved in December 2019. The appointment for the Phase 2 was awarded, and the successful bidder withdrew.

There are blocks that are due to receive slabs on the 28 August 2019, the contractor has been requested to take over the blocks and complete the brickwork in order to recover on the time lost. A meeting with the PSC is being scheduled to discuss performance of the SMME’s and risk factors affecting the project. Management is in the process of re-advertising phase 2.

2. Timberlands

Professional services Site establishment 3.73% of total scope

Draft Specification document was submitted to Bid Specification Committee and was referred back amendments. The revised document will be presented on the 04th October 2019 and will be advertised once the specifications are approved

The unit mix that was used for the design was not compliant with the Social Housing policy and would compromise the funding application. These had to be updated by the professional agent and incorporated in the revised B.O.Q which has been sent back to sit at BSC.

The design has been revised and the application is 90% complete. The funding application will be completed by the 31st of October and submitted to the SHRA for approval

3. Chantelle X39 Closeout Report 96% Complete

The contractor is behind schedule on the water and roads upgrade. The reservoir connection was done on the 27th September and completed. The project will be completed on the 31st of October 2019.

The dates for the reservoir shut-down has been communicated and the contractor will be installing the new connections. A revised programme has been requested for the road upgrade.

4. Sunnyside Erf 708 and 709

Closeout Report Achieved The file has been received from Ditlou and will be shared with Akhile for the closing of the AUC.

N/A

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3. PERFORMANCE ON THE 180 DAY AND 18 MONTH PROGRAMME

The entity does not have a 180 day and 18 month programme.

Table 5: Summary of performance on the 18 month programme

Programme/ project

Non-achieved targets year to date

Reasons for non-achievement

Corrective measures

Date for corrective measures

Responsible official

N/A N/A N/A N/A N/A N/A

4. FINANCIAL PERFORMANCE

4.1 REVENUE

4.1.1 Summary of financial operating results

The financial performance of the entity for the year (July 2019 - Sep 2019) resulted in an

accumulated surplus of R 6,8 million. This was attributed to the capital grant revenue recognized

on Townlands and Chantelle projects for development of 450 social housing units and upgrading

of bulk infrastructure respectively. Below is the graphical presentation of operating results:

4.1.2 Operating revenue

Recorded variances from the budget were from revenue categories such as rental revenue,

operational grant, interest income, and other revenue and capital grant transfers. The variances

can be explained as follows:

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

Inco

me

Exp

end

itu

re

Surp

lus

Budget

Actual

Variance

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Item Budget Actual Variance

Income 15,138,000 12,178,000 2,960,000

Expenditure 15,117,000 5,362,000 9,755,000

Surplus 21,000 6,816,000 -6,795,000

4.1.3 Rental income

For the period under review, the entity realized revenue of R2, 4million from the rental of stock

as compared to the budgeted amount of R4.7 million. The variance of R2, 3 million is because

of the Nellmapius building that has not been transferred from province. Bulk water and electricity

services are still not completed hence the units currently do not have any services. The provincial

department of housing is further working with the City to complete the installation of water and

electricity services to the units. These units are expected to be transferred to the entity once an

occupation certificate is received. To effect the transfer the entity will have to obtain a council

resolution

4.1.4 Operational grant

For the period under review, the Company recognized an operational grant of R9, 6 million as

per the Council approved budget, however the cash has not yet being received, hence the low

liquidity ratio.

4.1.5 Interest Income

For the period under review, the Company earned interest income of R45, 189 as compared to

the budgeted figure of R58, 737. The entity has subsequently invested excess cash into an

interest bearing account to optimize its cash on hand and gain additional interest

4.1.6 Other Income

The Company realized revenue of R74 150 as compared to the budget figure of R679 412. The

variance of R605 266 was as a result of Nellmapius building that has not been received from

province. The entity budgeted for rates and taxes recoveries on the building.

4.1.7 Capital Grant Transfers

The Company realized capital grant revenue of R28, 4 million as compared to the budget figure

of R50, 5 million. The variance of R22 million was due to the delay on the procurement process

of the contractor for Timberlands project as the unit mix of the units had to be revised to meet

SHRA requirements. The tender for the appointment of a contractor will go out in Quarter 2.

4.2 OPERATING EXPENSES

4.2.1 Expenditure

Major expenditure variances were recorded from broad expenditure categories such as

employee related costs, remuneration of directors, finance charges, contracted services and

other expenditures.

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4.2.2 Employee related costs

The Company has spent R3 million as compared to the budgeted figure of R6, 9 million. The

variance of R3, 9 million was due to the delay in the appointment of vacant positions. The

appointment process has been concluded for the CFO who resumed his role on 1 October

2019.

4.2.3 Remuneration of Directors

The Company has spent R492, 763 on Directors’ remuneration as compared to the budgeted

amount of R503, 699. There were more committee meetings in July and August to approve

Annual Report and Annual Financial Statements for June 2019.

4.2.4 Depreciation

For the period under review, the entity recorded depreciation of R243, 586 as compared to the

budget amount of R302, 135. The variance of R58, 549 was because of non- expenditure on

PPE in the previous financial as the budgeted depreciation was based on additional assets.

4.2.5 Finance Charges

The National Housing Finance Corporation (NHFC) loan has been settled in the previous

financial year and the budgeted amount will be removed during the adjustment budget process.

4.2.6 Contracted Services

The Company has spent R672, 559 on contracted services as compared to the budgeted

amount of R3, 8 million. The variance of R3, 1 million was due to the delay in the procurement

processes for the appointment of service providers for maintenance i.e. plumbing and electrical.

The Bid Specification Committee (BSC) will be finalising the specifications for panel of services

providers on maintenance.

4.2.7 Other Expenditures

The Company has spent R883, 234 on other expenditures as compared to the budgeted amount

of R2, 5 million. The variance of R1, 7 million was as a result of Nellmapius building that has not

been received from province. The entity budgeted for rates and taxes on the building.

4.2.8 Other Materials

The Company has spent R62, 750 on other materials as compared to the budgeted amount of

R1, 01 million. The variance of R947 790 was due to the delay in the procurement processes

for the appointment of service providers for consumables, tools and materials required. The Bid

Specification Committee (BSC) is finalising the specifications for panel of services providers on

Consumables, tools and materials required.

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4.3 CASH FLOW

The entity has submitted the claim for both operational and capital grant from the City to the

value of R90 million. The collection rate on average is at 89.25% as compared to the budgeted

collection rate of 95.5%. The entity ended the first quarter in a favorable cash position with cash

on hand being R48, 7 million.

4.4 STATEMENT OF FINANCIAL POSITION

The financial position reflects that the entity is capable of meeting its financial obligations given

that the total assets exceed total liabilities by R 314 million. This is a reflection that the company

could be not be plunged into insolvency as long as it receives the necessary support from the

shareholder. Current assets exceed current liabilities by R 54 million that indicates that the entity

is liquid. The current ratio is currently 1.61:1 versus standard norm of 2:1.

4.5 IRREGULAR, FRUITLESS AND WASTEFUL EXPENDITURE

The entity has incurred fruitless and wasteful expenditure to the value of R367.23 as a result of

late payment of VAT to SARS. The second fruitless and wasteful expenditure to the value of

R97.83 is as a result of payment made to the wrong Pension Fund and penalties were charged.

The total fruitless and wasteful expenditure amounts to R465.06. The amount will be reported

to the board and the money will be recovered from the responsible official.

5. GOVERNANCE

6.1 BOARD COMPOSITION

The Board meets regularly, at least once quarterly and retains full control over the company. The Board

remains accountable to City of Tshwane Metropolitan Municipality, the sole Shareholder. The Board

provides Quarterly, and Annual Reports on its performance and service delivery to the parent

municipality as prescribed in the SDA, the MFMA and the MSA.

The Board has four committees, namely:

Finance and Risk Committee

Human Resources and Remunerations Committee (REMCO)

Development and Projects Committee

Ethics Committee

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6.2 BOARD AND COMMITTEE MEETING

Board Committee Number of Meetings

Quarter 1 Year to date

Board meeting (normal) 1 1

Board meeting (special) 2 2

Annual General meeting 1 1

Human Resources 1 1

Finance and Risks 2 2

Development & Projects 2 2

Ethics Committee 1 1

Strategic Plan Review 0 0

6.3 DIRECTORS REMUNERATION

None-Executive Director Quarter 1 Year to date

Adv. T.S Kholong 69 125 69 125

Dr E. Monhla 97 763 97 763

Ms. L. Mashao 80 975 80 975

Mr. S. Makhari 80 975 80 975

Ms. H. Mokoena 65 175 65 175

Prof R. Tshaka 45 425 45 425

Mr. T. Maluleka 53 325 53 325

Total 492 763 492 763

6.4 EXECUTIVE AND SENIOR MANAGEMENT REMUNERATION

Executive Director & Senior Management

Position Quarter 1 Year to date

Ms. L Mudau Chief Executive Officer 384 321 384 321

Ms. S. Mhlungu Head: Legal & Company Secretariat 173 289 173 289

Ms. O Nyundu Acting Chief Operations Officer 0 0

Ms. L. Makibinyane Finance Manager 291 840 291 840

Mr. K.W Ramotshela Property Manager 203 341 203 341

Total 1 052 790 1 052 790

6.5 RISK MANAGEMENT AND INTERNAL CONTROLS

The HCTs’ Company Secretary (Cosec) is the entity’s Risk Champion. The incumbent reports on the

performance of the entity against its risk register on a quarterly basis. Risk is further a standing item in

the Executive committee meetings, which happen biweekly.

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The current risk register is aligned to HCT’s 2019/20 Business Plan and identifies risks, which may

have a negative impact on the HCT’s achievement of quarterly targets. Management has a

responsibility to mitigate risk and ensure that they do not realise.

The Risk Register is tabled at the CoT’s Finance and Risk Committee, APC meetings as well as HCT

Board meetings.

Annexure B details the identified strategic risks of the entity for the 2019/20 financial year and further

the progress in addressing these risks in Quarter 1.

No Risk Rating

1 High 2

2 Medium 6

3 Low 1

Total number of strategic risks 9

The major risk contributors are related to human resource capacity. The entity is expecting to fil four

critical vacancies within Quarter 1. Further, a service provider was appointed to perform a skills

development plan for each employee. The entity will invest in the training and development of its staff.

6.6 HUMAN RESOURCES

The entity’s executive management has a significant gap as only one position out of four has been

filled, however progress was being made as the CFO appointment was approved by MAYCO. The

CFO commenced on 1 October 2019. Interviews were held on in September and the recruitment

process is nearing its finalisation. The appointment will be made in the 2nd quarter of the year. The

arbitration process of the Former COO has been finalised. The Board is in the process of negotiating

the results of the ruling. The position will be advertised once the case has been finalised.

Critical vacancies were advertised to capacitate all departments within the entity, which has been

discussed in the above sections.

Table 6: Employee statistics on the approved structure

HOUSING COMPANY TSHWANE

DESIGNATION

Approved Posts

as per the

structure

Posts filled Vacancies Vacancies filled in Q1

Office of Chief Executive Officer 6 3 3 0

Office of Chief Finance Officer 19 5 14 1

Office of the Chief Operations

Officer 79 45 34 0

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HOUSING COMPANY TSHWANE

DESIGNATION

Approved Posts

as per the

structure

Posts filled Vacancies Vacancies filled in Q1

Corporate HR 3 0 0 0

Totals 107 52 55 0

Table 7: Employment Equity statistics

6.7 STRATEGIC AND OPERATIONAL CHALLENGES

On the 22 May 2019, the Mayoral committee resolved that 241 units be transferred to HCT for

management. There has been numerous challenges in taking over the stock. HCT management

together with Group property management are in the process of resolving the challenges and obtaining

all the required documentation for the take-on.

The 550 units at Nellmapius x 22 were illegally invaded and the Provincial Department of Human

Settlements has obtained an eviction order to remove the illegally occupied tenants. Furthermore, the

GDHS have obtained funding to complete the outstanding works in the project. Funding for

Timberlands has been obtained and management is currently busy with the procurement process of

the main contractor.

Current Employment Equity Profile

Occupational Levels Male Female Foreign

Nationals

Total

A C I W A C I W M F

Top management 0 0 0 0 1 0 0 0 0 0 1

Senior management 0 0 0 0 1 0 0 0 0 0 1

Professionally qualified and experienced specialists and mid-management

1 0 0 0 1 0 0 0 0 0 2

Skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents (P8 to P9)

7 0 0 0 3 0 0 0 1 0 11

Semi-skilled and discretionary decision making (P10, to P13)

3 0 0 0 2 0 0 1 0 0 6

Unskilled and defined decision making (P15 to P18 14 0 0 0 17 0 0 0 0 0 31

TOTAL PERMANENT 18 0 0 0 19 0 0 1 1 0 38

TEMPORARY/CONTRACT 7 0 0 0 6 0 0 0 0 0 14

GRAND TOTAL 25 0 0 0 25 0 0 1 1 0 52

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Table 9: Challenges

Challenges Interventions implemented Assistance required

1. Reduced budget allocation for capital projects in 2019/20 financial year.

The entity is planning to obtain funding approval for the Chantelle and Sunnyside project to start construction on the top structure before the end of November 2019.

The entity requires the City to provide Gap funding for these two capital projects during the adjustment budget process.

2. Inter-departmental Relationship

Constant engagements with the CoT departments to build and strengthen the relationship with HCT.

The City should engage with the entity with regards to any decisions that will have a direct impact on the entity. This will ensure that the entity is part of the decision making process. This includes including the entity in the relevant committees

7 DEPENDENCIES AND CROSS-CUTTING ISSUES

Table 10: Dependencies

No Inter-

Departmental

Dependency

Description

Department &

Individuals

Assigned

Responsibility

Departmental

Response

Joint Action (Provide details

on how the dependency will

be managed)

1 Access to suitable land for social housing development/s

Group Property Department of Human Settlement and Housing

In the development of its revenue optimization model the Group property department is assessing the best use for all council owned land and properties. The Department of Housing and Settlements is coordinating Social Housing developmental pipeline.

HCT and CoT’s Department of Housing and Human Settlements are working closely and much more collaboratively than before.

2 Slow approval processes

The CoT’s Service Departments

The CoT’s Service Departments and the HCT have held meetings to establish a working relationship and establish a mechanism of fast tracking approvals.

Providing a programme of works and submit it to the services department. Schedule by-monthly meetings to provide comments and amendments.

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8 OPERATION CLEAN AUDIT

Table 11: Evidence

Evidence for the quarter submitted with report (Yes/ No)

Departmental evidence files updated, centralized and verified in the department (Yes/ No)

If no, indicate corrective measure

Departmental project files for the quarter compiled, centralized and verified (Yes/No)

If no indicate corrective measure

Yes Yes N/A Yes N/A

The table below lists the AGSA findings, which have not been addressed in the previous financial year.

Only 2 out of 10 where not addressed. The 18/19 audit process is under way and the entity has not

received any findings as yet.

Table 12: OPCA controls and interventions

AG audit findings (for the financial year ended 30 June 2018)

AG’s Recommendations

Corrective action implemented in resolving findings from the AG

Responsible Person

Target date

Matters affecting the audit report

1. Invoices not paid within 30 days

Management should monitor and review adherence to controls by officials to ensure that all invoices are paid within 30 days. Invoices should be timeously submitted by user departments, property development to ensure that invoices are paid within 30 days

Management will monitor and review adherence to controls by officials to ensure that all invoices are paid within 30 days

CFO Not Achieved The finding will still occur as a contractors invoice was paid late due to the approval requirements of a variation order submitted against the contract price

Other important matters

2. Critical senior management Vacancies It was noted that the positions of the Chief Executive

Management should ensure that critical senior management positions are filled

The position of CFO was filled on 1 October 2019.

CEO In progress

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AG audit findings (for the financial year ended 30 June 2018)

AG’s Recommendations

Corrective action implemented in resolving findings from the AG

Responsible Person

Target date

Office, Chief Financial Officer and Chief Operating Officer were vacant for more than 12 months.

The COO position is yet to be filled

9 CONCLUSION AND RECOMMENDATIONS

There is a commitment from the Board of directors, the City and the senior management of the HCT to

ensure that it is successful and financially sustainable in the near future. Group property residential

stock has been earmarked to be transferred for management per a Mayoral resolution and is awaiting

council approval. The entity has been engaging with the City relating to the creation of a project pipeline

for the entity specifically looking at catalytic and mega projects which will increase the entity’s rental

stock.

There is significant progress being made in the resolution of findings identified by the AGSA and further

internal audit. These have a positive impact on the audit opinion that will be provided on the financial

performance of the entity.

A stakeholder engagement plan will be drafted to ensure that continuous engagement is made with key

stakeholders who contribute to the entities success and further resolutions taken during these meetings

can be tracked and followed up on.

The entity needs to strengthen its property development capacity to drive performance on projects. It

further has to work more closely with the City for it to assist it in meeting its contractual conditions with

the SHRA in order to obtain access to funding.

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ANNEXURE A: STATEMENT OF FINANCIAL POSITION AND FINANCIAL PERFORMANCE

Section 1: Statement of Financial Performance

Housing Company Tshwane - Table F2 Monthly Budget Statement - Financial Performance (revenue and expenditure) - M01 Sep

Description Ref

2018/19 Current Year

2019/20

Un-Audited Outcome

Original Budget

Monthly actual

Year-TD actual Year-TD budget YTD variance YTD variance Full Year Forecast

R thousands %

Revenue By Source 1 Rental of facilities and

equipment 9 009 19 146 817 2 446 4 786 (2 341) -48,9% 19 146 Interest earned - external

investments 53 40 4 12 10 2 17,9% 40 Interest earned -

outstanding debtors 166 195 11 34 49 (15) -31,4% 195

Transfers and subsidies 36 275 38 452 9 613 9 613 9 613 – 38 452 Other revenue 295 2 718 25 74 679 (605) -89,1% 2 718

Total Revenue (excluding capital transfers and contributions) 45 798 60 550 10 470 12 178 15 138 (2 960) -19,6% 60 550

Expenditure By Type

Employee related costs 9 521 27 657 1 154 3 058 6 914 (3 857) -55,8% 27 657

Remuneration of Directors 1 769 2 015 107 493 504 (11) -2,2% 2 015 Depreciation & asset

impairment 841 1 209 244 244 302 (59) -19,4% 1 209

Finance charges 72 137 – – 34 (34) -100,0% 137

Other materials 410 4 042 21 63 1 011 (948) -93,8% 4 042

Contracted services 3 328 15 234 388 673 3 809 (3 136) -82,3% 15 234

Other expenditure 4 274 10 176 346 833 2 544 (1 711) -67,2% 10 176 Loss on disposal of PPE – – – – – –

Total Expenditure 3 20 214 60 470 2 258 5 362 15 117 (9 755) -64,5% 60 470

Surplus/(Deficit) 25 584 81 8 211 6 815 20 6 795 33709,6% 81

Transfers and subsidies - capital (monetary allocations) (National / Provincial Departmental Agencies, Households, Non- 66 582 202 047 24 161 28 494 50 512 (22 018) -43,6% 202 047

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profit Institutions, Private Enterprises, Public Corporations, Higher Educational Institutions)

Transfers and subsidies - capital (in-kind - all) – – – – – – Surplus/(Deficit) before taxation 92 166 202 128 32 372 35 310 50 532 (15 222) -30,1% 202 128

Taxation – – – – – –

Surplus/(Deficit) for the year 92 166 202 128 32 372 35 310 50 532 (15 222) -30,1% 202 128

Section 2: Statement of Financial Position

Housing Company Tshwane - Table F4 Monthly Budget Statement - Financial Position - M01 Sep

Vote Description

2018/19 Current Year 2019/20

Un-Audited Outcome Original Budget Year-TD actual Full Year Forecast

R thousands

ASSETS

Current assets

Cash 62 360 15 960 48 765 15 960

Consumer debtors 159 1 015 233 1 015

Other debtors 105 120 92 081 120

Current portion of long-term receivables –

Total current assets 62 624 17 094 141 080 17 094

Non -current assets

Property, plant and equipment 226 434 502 569 260 504 502 569

Intangible 460 434 325 434

Other non-current assets –

Total non- current assets 226 894 503 003 260 828 503 003

TOTAL ASSETS 289 518 520 097 401 908 520 097

LIABILITIES

Current liabilities

Consumer deposits 1 002 1 680 973 1 680

Trade and other payables 33 198 1 991 78 758 1 991

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Provisions 6 173 779 7 850 779

Total current liabilities 40 373 4 450 87 581 4 450

Non- current liabilities

Borrowing –

Provisions –

Total non- current liabilities – – – –

TOTAL LIABILITIES 40 373 4 450 87 581 4 450

NET ASSETS 249 145 515 646 314 327 515 646

COMMUNITY WEALTH/EQUITY

Accumulated Surplus/(Deficit) 254 646 506 624 300 982 506 624

Reserves 9 023 9 023 13 346 9 023

Share capital 4 614 –

TOTAL COMMUNITY WEALTH/EQUITY 268 283 515 646 314 327 515 646

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Section 3: Statement of Capital Expenditure

Housing Company Tshwane - Table F3 Monthly Budget Statement - Capital Expenditure - M01 Sep

Description


2010/11

Audited Outcome

Original Budget

Monthly actual

Year-TD actual

Year-TD budget YTD variance YTD variance Full Year Forecast

R thousands %

Capital expenditure by Asset Class/Sub-class

Other assets 87 953 202 197

13 793

28 494 28 670 176

0,6% 202 197

Operational Buildings 119 150 – – 66 66

100,0%

150

Municipal Offices 119 150 – – 66 66

100,0% 150

Housing 87 834 202 047

13 793

28 494 28 604 110

0,4%

202 047

Staff Housing – – – – – – –

Social Housing 87 834 202 047

13 793

28 494 28 604 110

0,4% 202 047

Capital Spares – – – – – – –

Intangible Assets 3 – – – – – –

Servitudes – – – – – – –

Licences and Rights 3 – – – – – – Computer Software and

Applications 3 – – – – –

– – – – – – –

Computer Equipment 75 100 – – 44 44

100,0% 100

Computer Equipment 75 100 – – 44 44

100,0% 100

Furniture and Office Equipment 98 250 –

100 110 10

9,2% 250

Furniture and Office Equipment 98 250 –

100 110 10

9,2% 250

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Total Capital Expenditure 88 130 202 547

13 793

28 594 28 824 230

0,8% 202 547

Funded by:

National Government – – – – – –

Provincial Government – 81 871 – – 11 138 11 138 100,0% 81 871

Parent Municipality 75 649 119 676

13 793

28 494 17 685 (10 809)

-61,1% 119 676 District Municipality – – – – – –

Transfers recognised - capital 75 649 201 547

13 793

28 494 28 824 330 0 201 547

Public contributions & donations – – – – – – Borrowing – – – – – –

Internally generated funds 12 481 500 –

100 – (100)

0,0% 500

Total Capital Funding 88 130 202 047

13 793

28 594 28 824 230 0 202 047

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Section 4: Cash Flow Statement

Housing Company Tshwane - Table F5 Monthly Budget Statement - Cash Flows - M01 Sep

Description


2019/20

Un-Audited Outcome

Original Budget Monthly actual

Year-TD actual

Year-TD budget YTD variance YTD variance Full Year Forecast

R thousands %

CASH FLOW FROM OPERATING ACTIVITIES

Receipts

Other revenue 8 866 22 059 688 2 332 5 515 (3 183) -57,7% –

Government - operating 36 275 38 452 – – 9 613 (9 613) -100,0% –

Government - capital 36 000 202 047 – 17 117 50 512 (33 395) -66,1% –

Interest 41 40 4 12 10 2 17,9% –

Payments

Suppliers and employees (9 458) (57 451)

(1 593) (6 564) (14 363) 7 799 -54,3% –

Finance charges (54) (137)

– – (34) 34 -100,0% –

Dividends paid – – – – –

NET CASH FROM/(USED) OPERATING ACTIVITIES 71 670 205 010

(901) 12 896 51 252 (54 022) -105,4% –

CASH FLOWS FROM INVESTING ACTIVITIES

Receipts

Proceeds on disposal of PPE – – – –

Payments

Capital assets (57 088) (202 547)

– (28 021) (50 637) 22 616 -44,7% –

NET CASH FROM/(USED) INVESTING ACTIVITIES

(57 088) (202 547)

– (28 021) (50 637) (22 616) 44,7% –

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts

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Short term loans – – – –

Payments

Repayment of borrowing (1 559) –

– – – – –

NET CASH FROM/(USED) FINANCING ACTIVITIES

(1 559) –

– – – – –

NET INCREASE/ (DECREASE) IN CASH HELD 13 022 2 462

(901) (15 125) 616 (15 740) -2557,1% –

Cash/cash equivalents at the year begin: 50 884 69 270

49 666 63 890 11 854 52 037 11 854

Cash/cash equivalents at the year- end: 63 906 71 732

48 765 48 765 12 469 36 296 291,1% 11 854

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ANNEXURE B: RISK REGISTER

No Strategic and Business Objectives

Risk Description

Root Cause Consequence Existing Control Management Action plan

Target Date Quarter 1 Progress

1 Strengthen and rebuild an effective and realistic social housing plan for the City of Tshwane

Inability to deliver rental housing units

1. Delays in obtaining approved plans and designs from the relevant authorities. 2. Inadequate funding. 3. Lack of Capacity in relation to Human Resources 4. Poor project management 5. Lack of community consultation and buy-in. 6. Poor planning.

1. Non accreditation from Social Housing Regulatory Authority (SHRA). 2. Poor service delivery. (Community unrest) 3. Reputational damage. 4. Inability to be financially sustainable 5. Closure of the entity (Inability to deliver mandate)

1. Filling of critical vacancies 2. Monthly project reporting to various stakeholders 3. Monthly project steering committee meetings 4. Monthly and quarterly reporting to SHRA 5. Appointment of Community liaison officers on projects 6. Submission of budget requirements and further business plan on an annual and bi annual basis to request funding for capital projects and further operational grants

1. Development of 450 units over the 2019/2020 financial year. 2. Development and monitoring of stakeholder engagement plan to enhance responsiveness of external and internal stakeholders 3. Timely submission of funding application and ensuring compliance with condition precedence 4. Filling of critical vacancies

30-Jun-20 1. 450 UNITS still expected to be delivered in Townlands by 30 June 2020. Project progress report is available to ascertain how much has been delivered to date and further the contractor program is included in the report 2. Stakeholder engagement plan has yet to be developed 3. Funding applications for the three projects (Chantelle, Sunnyside and Timberlands is underway with the SHRA) 4. The position of Program development manager, HR manager and further SCM specialist have gone through interview process and verifications and the incumbents are expected to start in November. Offer letters in the process of being issued

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Risk Description



2 Inability to lease rental units at a fair market value or at all, due to them being in a poor condition

1. Poor maintenance of rental units 2. Lack of budget to effect repairs 3. Poor tenant management

1. Loss of income 2. Reputational damage 3. Litigations

1. Condition assessments of rental properties 2. Development and implementation of maintenance plan 3. Monthly inspections of rental units

1. Fully costed maintenance plan 2. Budget allocations for repairs and maintenance 3. Inspection of units before and after occupation.

30-Jun-20 1. Maintenance plan in existence for 19/20 year 2. Repairs and maintenance budget has been allocated as part of the approved budget of 2019/20 3. This is always performed. An inspection form is attached as part of the request to refund a tenant. If there is damaged caused by the tenant they will not be eligible for a refund. The budget for R&M is however limited and buildings can only be fixed in a phased in approach with urgent matters being prioritized

3 Redesign, reposition, restructure and resource the organization, ensuring that there is competent and solid capacity to manage and execute financial and operational requirements for a

Inability to attract and retain skilled employees

1. Salary packages not competitive. 2. Lack of progression and growth.

1. High staff turnover 2. Lack of stability 3. Low staff morale 4. Inability to manage and execute financial and operational mandate

1. Salary benchmarking and grading

1. Development of a skills development plan 2. Approval and implementation of salary benchmarking and grading system

30-Sep-19 1. A service provider has been appointed to do a skill assessment for the organisation and there after develop a skills development plan for all employees. This is expected to be completed before end of October 2019. The skills assessment phase is done 2. A service provider has been appointed, a placement committee with union representatives has been formed and is meeting, grading implementation plan expected to be tabled at board during Quarter 1 reporting in October 2019.

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Risk Description



4 sustainable HCT.

Lack of a strong corporate identity

1. Lack of capacity in the communication and marketing section 2. Lack of a communication strategy 3. Poor marketing strategy

1. Inability to attract the appropriate target market to fill vacant rental units. 2. Financial viability

1. Approved structure in place 2. Engagement with communications department for creation of corporate identity. 3. Marketing strategy for leasing of rentals

1. Development of corporate identity manual 2. Development of communications strategy 3. Development of website

30-Dec-19 1. CI has not been completed. Capacity challenges. Should still go through SCM process 2. Same applies 3. Same applies

5 Continuously strive to promote and practice sound governance principles and ethics in the execution of the HCT mandate

Ineffective implementation of code of ethics

1. Insufficient awareness of employees’ responsibility with reference to the code of ethics 2. Lack of SOP's to implement code of ethics

1. Financial Loss 2. Increase in fraud and corruption 3. Reputational damage

1. Approved code of conduct in place 2. Social and ethics committee 3. Utilisation of the City Fraud Hotline

1. Development of SOP’s for implementation of the code of ethics. 2. Fraud and corruption awareness sessions

30-Dec-19 1. A service provider has been appointed to review all HR policies including CoC. Should be completed by end of October 2. group audit is leading in the fraud and ethics awareness sessions City wide which includes entity

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Risk Description



6 Poor consequence management

1. Lack of a performance management system 2. Unclear job descriptions and responsibilities 3. Lack of accountability 4. High vacancy rate which impacts responsibility and accountability levels

1. Labor disputes 2. Increase in fraud and corruption 3. Reputational damage 4. Financial Loss 5.Low- staff morale

1. Approved Performance management policy 2. Approved code of conduct policy

1. Approval of job descriptions 2. Filling of critical vacancies 3. Review , approval and implementation of performance management policy

30-Jun-20 1. and 3. The consultant responsible for job grading has reviewed all job descriptions. They will further be reviewing the performance management policy, workshopping it. The Performance agreements are expected to be signed in November 2. Refer to Risk 1

7 Continuously strive to promote and practice sound governance principles and ethics in the execution of the HCT mandate

Non-compliance to laws and regulations

1. Ineffective utilization of the compliance checklist 2. Ineffective implementation of OHS requirements 3. Lack of human resources 4. Lack of awareness of applicable laws and regulations

1. Loss of accreditation 2. Inhabitable buildings 3. Financial loss 4. Litigation 5. Reputational damage 6. Deregistration of the company

1. Compliance checklist 1. Continuous monitoring of compliance checklist 2. Appointment of service providers to conduct OHS risk assessment 3. Filling Critical vacancies 4. Training of staff to keep abreast of new developments within the environment

30-Jun-20 1. Done on a quarterly basis and reported to Board 2. OHS risk assessment still not done 3. Refer to risk 1 4. After development of skills development plan relevant service providers will be sourced to provide training organisationally

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Risk Description



8 Create a client to brand-experience orientation that aims to build relationships with key stakeholders that can support HCT in achieving its objectives.

Inability to identify all key stakeholders within and outside the organization

1. Lack of a stakeholder engagement plan

1. Inability to reach reporting timelines and targets 2. Reputational damage 3. Inability to address stakeholder needs. 4. Missed opportunities of investment within the organisation 5. Project stoppage 6. Community up rise

1. Community Liaison Officers appointed on all greenfield projects 2. SHRA and the CoT are key stakeholder 3. Continuous engagement with identified stakeholders

1. Development of stakeholder engagement plan

30-Jun-20 1. Not yet done

9 Manage risks effectively.

Inability to identify and manage risks

1. Lack of resources 2. Inadequate systems and processes 3. Poor communications 4. Interdependency 5. Inadequate project governance structures 6. Reactive risk management

1. Inability to execute the HCT mandate 2. Inability to meet financial targets 3. Non-compliance to King IV and companies Act 4. Loss of accreditation 5. Project failure.

1. Oversight structures that oversee risk management (Board, Fin Risk, APC) 2. Risk Framework and Policy 3. Support from Group Audit and Risk

1. Development of project risk registers 2. Timely and continuous monitoring and reporting of risk register

Continuous 1. Project risk register, which incorporates all projects not done. 2. In progress

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All committee members and other authorised persons reading this report are reminded that they are doing so in an official capacity and are requested to respect the confidentiality thereof

TEDA 1st Quarter report 2019/20

TSHWANE ECONOMIC DEVELOPMENT AGENCY

1st QUARTER PERFORMANCE REPORT

(July - September 2019)

SIGNOFF

ACTING CHIEF EXECUTIVE OFFICER

Mr. Mogau Leshilo

DATE

ANNEXURE C61


TEDA 1st Quarter report 2019/20 1

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY 2

2. PERFORMANCE AGAINST THE ENTITY BUSINESS PLAN 3

2.1 SUMMARY OF PROGRESS AGAINST THE ENTITY BUSINESS PLAN TARGETS 3

2.2 SUMMARY OF PROGRESS ON PROJECTS 4

3. PERFORMANCE ON OTHER STRATEGIC MATTERS 5

3.1 PROGRAMME 2: DESTINATION MARKETING 5

3.2 PROGRAMME 3: TRADE AND INVESTMENT PROMOTION 6

3.3 PROGRAMME 4: PROJECT PORTFOLIO MANAGEMENT 8

4. FINANCIAL PERFORMANCE 11

5. GOVERNANCE 12

5.1 BOARD COMPOSITION 12

5.2 BOARD AND COMMITTEES 12

5.4 RISK MANAGEMENT AND INTERNAL CONTROLS 13

5.4.1 RISK MANAGEMENT 13

5.4.2 INTERNAL CONTROLS 14

6. HUMAN RESOURCES 18

6.1 HEAD-COUNT & RECRUITMENT 18

6. 2 SKILLS DEVELOPMENT 19

6.3 REMUNERATION EXERCISE 19

6. 4 PERFORMANCE MANAGEMENT 19

6. 5 HUMAN RESOURCES MANAGEMENT POLICY REVIEWS 21

7. DEPENDENCIES AND CROSS-CUTTING ISSUES 22

8. OPERATION CLEAN AUDIT 22

9. CONCLUSION AND RECOMMENDATIONS 28

ANNEXURE A: FINANCIAL PERFORMANCE 29

ANNEXURE B: RISK REGISTER 30

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TEDA1st Quarter Report 2019/20 2

1. EXECUTIVE SUMMARY

The 1st quarter report for the financial year 2019/20 has been prepared against the approved TEDA business

plan. There are 27 Key Performance Indicators (KPIs) approved for the current financial year, 16 of which are

applicable for the first quarter. The entity achieved all 16 KPIs.

The following are the highlights of the 1st quarter report:

The position of Executive Manager: Corporate Services was concluded in the period under review.

All external audit findings were resolved during the audit process with the exception of two (2) internal

audit findings that emanated from the mandate. The mandate has since been reviewed and it is safe

to say that 100% of audit findings have been resolved.

The following five (5) major stakeholder engagements were held in the quarter under review:

o TEDA partnered with the Capital City Business Chamber, Raudev and Old Mutual to host the

Mandela Day programme on 18 July 2019 at Olievenhoutbosch also working together with the

Olievenhoutbosch Business Forum. Another stakeholder that came on board was the Tshwane

South College.

o TEDA and PRASA had engagements on the 25 of July 2019 to work on a collaboration agreement

(draft MoU) to facilitate the development of strategic land parcels of PRASA located in Tshwane.

o A meeting with CAV took place on 2 August 2019 to discuss areas of collaboration. The Trade and

Investment Promotion Unit was also invited to join CAV at a strategic planning session.

o The third installment of the Ambassadors Luncheon took place on 15 August 2019 as part of the

implementation of the MoU with the Southern African Netherlands Chamber of Commerce

(SANEC).

o Tshwane Trade and Investment Summit (TTIS) took place from the 17 – 18 September 2019 as

part of attracting investors into the City of Tshwane. The event was organized in collaboration

with several stakeholders including the GGDA, AIDC, CCBC, Embassies, etc.

TEDA embarked on research activities on new products and market opportunities available. The

following were achieved in quarter 1:

o Project Book prepared for the Tshwane Trade and Investment Summit (TTIS) 2019; and

o Summit Booklet also prepared for the Tshwane Trade and Investment Summit (TTIS) 2019.

TEDA in collaboration with the City of Tshwane ‘s Tourism division participated at the China Incentive

Business Travel Meeting (CIBTM) tradeshow from 28 to 29 August 2019 in Beijing, China. The purpose

of participation at the tradeshow was to promote Tshwane business, events, sports and leisure tourism

offerings as well as the Capital City status of Tshwane.

TEDA hosted the World Association International Technology Research Organisations (WAITRO)

delegates from Germany in September 2019 to discuss matters pertaining to organizing and hosting of

the 1st WAITRO Global Innovation Summit in 2020.

In the period under review, eleven (11) leads with the potential to host meetings, incentives,

exhibitions and investment in Tshwane were qualified.

Engagements continued with the current investors in Tshwane with the aim of encouraging

expansions. This led to four (4) investment projects being attracted to the pipeline.

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Two investment attraction missions were facilitated in the quarter under review; namely: a trade

mission to Botswana Global Expo which took place from the 5 – 9 August 2019 and another mission to

Ghana focusing on plastics and other consumer products.

TEDA embarked on five (5) business support interventions to assist Tshwane based companies in the

period under review. These interventions relate to activities or events undertaken by TEDA to engage

with existing investors with the aim of retaining their investments in the City.

Assistance was provided to five (5) Tshwane companies with the aim of facilitation their plans to

expand their current operations.

As part of capacitating Tshwane based companies, TEDA jointly with the DTI hosted Phase 1 of the

Global Exporter Passport Programme (GEPP) training from the 16-19 July 2019.

The GEPP training was used to prepare companies for the international market through comprehensive

interventions. A total of thirty (30) Tshwane based companies attended the training

As part of promoting exports by Tshwane based companies, 15 companies were assisted with

participation at three (3) exhibitions and trade shows in the period under review.

Progress report on the facilitation for Tshwane Freight and logistics hub was produced.

Progress report on the facilitation of the Armscor development project was produced.

2. PERFORMANCE AGAINST THE ENTITY BUSINESS PLAN

2.1 SUMMARY OF PROGRESS AGAINST THE ENTITY BUSINESS PLAN TARGETS

The tables shown below illustrate the performance of TEDA in the period under review against the strategic

objectives set out in the 2019/2020 Tshwane Economic Development Agency’s Business Plan.

Table 1: Summary of performance against the business plan

Total No of targets for the financial year

Number of targets for the quarter

No of targets not achieved for the

quarter

No of targets achieved for the

quarter

No of targets not achieved year to

date

No or targets achieved year to

date

27 16 0 16 0 16 Table 2: Business plan targets not achieved

Key Performance

Indicator

1st Quarter planned target

Reason for non-achievement

Corrective measures

implemented to date

Planned corrective

measures to be implemented

The responsible official for corrective measure Due date

N/A

64



Table 3: Business plan targets achieved

No Key Performance Indicator 1st Quarter Target

1st Quarter Actual

1 % of critical of positions filled 100% 100%

2 Clean Audit opinion AG achieved for 2018/19 100% of audit findings resolved

100% of audit findings resolved

3 Number of stakeholder engagement held 5 5

4 Number of products and market opportunities researched and developed.

2 2

5 Number of international destination marketing activities implemented e.g. film and tourism

1 1

6 Number of inwards tourism mission coordinated 1 1

7 Number of leads generated through destination marketing activities

2 11

8 Number of investment project attracted into the pipeline

3 4

9 Number of (inward and outward) investment attraction missions facilitated

2 2

10 Number of business support interventions facilitated 5 5

11 Number of companies assisted with expansions solutions

5 5

12 Number of capacity building workshops held for Tshwane companies

1 1

13 Number of Tshwane based companies assisted with export development

10 30

14 Number of companies that participate in exhibition and shows

10 15

15 Number of reports on the facilitation of freight and logistics hub

1 1

16 Number of reports on the facilitation of Armscor development project

1 1

2.2 SUMMARY OF PROGRESS ON PROJECTS

Table 4: Summary of projects

Total no of Projects No of projects that achieved planned

non-financial milestones for the

quarter

No of projects that did not achieve planned

non-financial milestones for the quarter

No of projects that achieved planned non-

financial milestones year to date

No of projects that did not achieve planned

non-financial milestones year to

date

1 1 0 1 0 Table 5: Non achieved milestone targets on projects and corrective measures

IDP project name

Corrective measures implemented for non-

achieved milestone

Corrective measures to be implemented

Date of implementation Responsible official

N/A

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3. PERFORMANCE ON OTHER STRATEGIC MATTERS

The following section provides detailed progress on core programmes.

3.1 PROGRAMME 2: DESTINATION MARKETING

Number of international destination marketing activities implemented

TEDA working with the City of Tshwane ‘s Tourism division participated at the China Incentive Business Travel

Meeting (CIBTM) tradeshow from 28 to 29 August 2019 in Beijing, China. The purpose of participation was

to promote Tshwane business, events, sports and leisure tourism offerings as well as the Capital City status

of Tshwane.

Number of inwards tourism missions coordinated

The unit hosted the World Association International Technology Research Organisations (WAITRO) delegates

from Germany. A site visit to the summit venue CSIR ICC, Dinokeng Game Reserve and workshop with all

stakeholders were planned. The purpose of the workshop is for the WAITRO, the CSIR, and key partners to

discuss in detail all matters pertaining to organizing and hosting of the 1st WAITRO Global Innovation Summit

2020. The discussions were in the form of a workshop between the CSIR and its internal Working Group for

the Summit, key members of the Local Organizing Committee from neighbouring institutions, the

Department of Science and Innovation, and the City of Tshwane Tourism Officials.

In addition, we hosted a city tour for professors attending the UNISA Graduate School of Business Leadership

(SBL) Symposium on the “The Future of the City Centre”. The tour took place on the 10 September 2019 and

covered interests of the visiting delegation, which included the following: key tourism attractions within

CBD; projects in the CBD, trading in the CBD (formal and or informal); housing within CBD; and mobility

projects within CBD.

Number of leads generated through destination marketing activities

The following eleven (11) leads with the potential to host meetings, incentives, exhibitions and investment

in Tshwane were generated through destination marketing activities:

2021 Brics Mathematics and Statistics Conference

Annual Association of Netherlands Travel Agents & Tours Operators (ANVR) annual conference

2020/2021

Anxon Travel

Shenzhen Port China Travel Service Co.Ltd

Shanghai Jinjiang International Travel Co., Ltd

Mileage Group

International China Investment Forum

China Association of Rehabilitation Technology Transformation & Promotion

Asian Local Search and Media Association

Poloair Holidays Shanghai LTD

New Element International Travel

66



3.2 PROGRAMME 3: TRADE AND INVESTMENT PROMOTION

3.2.1 INVESTMENT PROMOTION AND FACILITATION

Rand value of landed investment projects into the City of Tshwane

The annual investment target for the 2019/20 financial year is R1.8 billion. TEDA is working on achieving the

set goal. The following projects are being followed up to reach a committed stage:

Badder Leather: Bader has committed to invest a minimum of R600 million in Rosslyn as part of the

relocation from Garankuwa. The company has purchased the target land and TEDA is assisting with

facilitation services related to planning and utility connections. The investment decision is expected

by the end of October 2019.

Bio2Watt: The company is expected to make a final decision on the expansion of the Bronkhorspruit

bioenergy plant. TEDA is facilitating engagement between Bio2Watt and the Group Head Property

regarding the leasing of land in Sunderland Ridge for another R240 million project for the company.

Number of job opportunities facilitated in Tshwane

There were no jobs facilitated in quarter 1, however, 60 new job opportunities are expected from the Badder

leather projects in the next quarter.

Number of new, quality investment projects attracted into the pipeline

Four (4) new projects were attracted to the investment pipeline:

Sino Trucks – The manufacturer of small trucks is considering an investment location between Tshwane

and eThekwinin. Meetings were held with the company to present Tshwane’s value proposition

especially for supply to the large inland Gauteng and SADC markers.

El-Journey Group – The company is considering a student accommodation investment in Hatfield with

a planned CAPEX of R150 million. TEDAS will be assisting with various facilitation services.

Nirmala Juice – The company is expanding its fruit juice production facilities in Centurion. TEDA is

providing facilitation services related to increased electricity capacity connection with the City.

Coskunoz Holdings – The Turkish company is envisaged to get a Tier 2 supplier contract from Ford

Motor Company in Silverton. The company has engaged TEDA and the DTI regarding facilitation

services for this planned investment which the value is not yet determined.

Number of (inward and outward) investment attraction missions facilitated

The following two (2) foreign missions were undertaken:

A trade mission to the 14th Botswana Global Expo from 6 – 9 August 2019, an annual premier business-

to-business exhibition which is organized and managed by the Botswana Investment and Trade Centre

(BITC). The event took place from 6 – 9 August 2019 under the theme “ Harnessing the power of

emerging markets for economic growth”. The mission included a one-day investment and trade

conference that ran parallel to the exhibition. The initiative afforded 7 Tshwane based companies an

opportunity to discuss business prospects.

A trade mission to Ghana from 23 – 27 September 2019 focusing on plastics and other consumer

products. TEDA led five(5) Tshwane based companies to the trade mission.

67



3.2.2 BUSINESS RETENTION AND EXPANSION

Number of business support interventions facilitated

The following support and expansion solutions were provided to Tshwane companies:

o The mayoral business breakfast hosted by the Executive Mayor of Tshwane, Stevens Mokgalapa, on

the 8 August 2019 held at the Tshwane House.

o Mayoral engagements with the G20 and BRICS Countries on the 14 August 2019 held at the Tshwane

House. The meeting was organized to engage with foreign delegates in preparation for the TTIS 2019.

o The annual Ambassador Luncheon was held on 15 August 2019 at The Venue in Menlyn, Tshwane. The

event was addressed by the Executive Mayor of Tshwane, Stevens Mokgalapa, MMC Isak Pietersen,

the Chairperson of TEDA, Mr. Nils Flaatten and the new Dutch Ambassador to South Africa, HE Han

Peters. Over 120 delegates attended the event, which was held under the theme “Alternative

strategies in farming for sustainable livelihoods and food security”.

o Mayoral engagement with the Business France on the 19 August 2019 at the Council Chambers in

Tshwane House.

o Mayoral Engagement with the Agri-business sector on 21 August 2019 held at Tshwane House. The

event was again addressed by Executive Mayor and by the CEO of TEDA.

o Mayoral Engagement with the Energy sector on 22 August 2019 held at Tshwane House. The event

was addressed by the Executive Mayor and by the CEO of TEDA.

o Mayoral Engagement with the Tourism sector on 22 August 2019 held at Tshwane House. The event

was also addressed by the Executive Mayor and the CEO of TEDA.

o Mayoral Engagement with UK Investors on 12 September 2019 held at the UK High Commissioner

Residence. The event was addressed by the Executive Mayor, MMC Pietersen and a presentation

conducted by TEDA.

Number of companies assisted with expansion solutions In the period under review, a total of nine (9) companies were assisted with expansion solutions:

o Prime Products

o Bio2Watt

o Bader Leather

o The Regency Hotel Group

o QK Meats

o Tata Motors SA

o Marce Group

o Bokamoso Agro-Processing

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3.2.3 EXPORT DEVELOPMENT AND PROMOTION

Number of capacity building workshops held for Tshwane based companies

TEDA in partnership with the DTI provided capacity building training for Tshwane based companies on the

Global Exporter Passport Programme (GEPP) Level 1 training from the 16-19 July 2019.

Number of Tshwane based companies assisted with export development

A total of 30 companies attended the Global Exporter Passport Programme (GEPP) Level 1 training held on

16 - 19 July 2019.

Number of companies participated in exhibitions and trade shows

As part of promoting exports by Tshwane based companies, 15 companies were assisted with participation

at exhibitions and trade shows as follows:

o 3 companies participated at the Aero SA exhibition at Wonderboom Airport from 4 - 6 July 2019;

o 7 companies participated at the Global Expo in Gaborone, Botswana from 6 – 9 August 2019; and

o 5 companies participated at the Ghana Trade Mission from the 23 - 27 September 2019.

3.3 PROGRAMME 4: PROJECT PORTFOLIO MANAGEMENT

3.3.1 DEVELOPMENT FACILITATION

Facilitation of Tshwane Freight and logistic hub

Tshwane (Pyramid South) Freight Terminal and Logistics Hub is a planned development of an intermodal

freight terminal with rail and road facilities in the Pyramid South. The terminal will comprise of the rail yard,

container stacking yard, warehouses, light industrial site, offices, gate operations and high-security

perimeter fence with 24/7 CCTV. The project has progressed beyond the project initiation phase of

formalising the relationship with three agreements been signed off. In the period under review, the following

milestones were achieved:

Signed the project charter for the market and socio-economic study funding agreement with GIFA;

Facilitated the appointment of a service provider for the market and socio-economic study from GIFA

panel; and

Consolidation of Pyramid South Freight Terminal and Logistics Hub report into the Transport Freight

Steering Committee SIP 2 report and representation.

TEDA’s role remains critical on the project coordination, development facilitation and investment

mobilisation in the project.

Facilitation of Armscor development project

TEDA and City of Tshwane Economic Development and Spatial Planning are collaborating to ensure that

Armscor files an application for the Erasmuskloof development project to be awarded the Strategic Urban

Development or Strategic Investment status. The magnitude of the development is strategically based on

job creation, economic growth and equity opportunities in the Tshwane area. Gerotek remains strategic and

requires further work to unpack the property, and both TEDA and Armscor have agreed on to unbundle the

property further.

69



It is envisaged that the commercial close will be realised in 2019/2020 financial year owed to the delays

suffered due to the Armscor’s board decision to review the procurement process of Erasmuskloof properties,

and lack of response to the Gerotek property. In terms of the revised project plans, the project is at the

initiation stage with 95% of the tasks completed. The appointment of the developer will conclude the project

initiation phase.

3.3.2 AREA BASED DEVELOPMENT

Number of precinct plans developed

The Groenkloof Nature Reserve (GNR) precinct plan has progressed to the planning stage of the project life

cycle. TEDA PPM Unit in collaboration with City Planning has completed the process of consolidating C9

inputs for the GNR, and also in the process of drafting the C9 report for the Pretoria West Industrial and

Tshwane Fresh Produce Market precinct plans. The area-based initiative target for the 2019/2020 financial

year is to develop two precinct plans. During quarter 1 of 2019/2020, the following key milestones in the

project initiation have been achieved, namely:

Consolidated the C9 reports inputs from various departments on the GNR precinct plan for Council

approval;

Successfully held an inception meeting for both Wonderboom Airport and Pyramid South precinct

plans;

Developed draft Service Level Agreements (SLAs) for both Wonderboom Airport and Pyramid South

precinct plans;

Completed the status quo for the urban design booklet and project impact map.

The project plans will continue to guide the project planning process and project management tool across

the project life cycle. The PPM Unit has facilitated an engagement session with City Planning and Speaker’s

Office to fast track the public participation process for the GNR, Pretoria West Industrial and Tshwane Fresh

Produce Market precinct plans as there is slow movement. Both Wonderboom Airport and Pyramid South

have fairly progressed well with the completion of the project initiation stages.

Number of packaged developments

The PPM Unit has initiated an engagement session with City Planning to identify precincts that are ready for

TEDA to package in the 2019/20 financial year. The Groenkloof Nature Reserve is amongst the precincts that

have already been identified for packaging.

3.3.3 PROJECT DEVELOPMENT

Number of TEDA projects packaged for the market

Project packaging for the market includes the development of the business case/plan for the projects. The

business case sets the parameters and considerations for the successful implementation of the project. The

projects targeted for packaging are Tshwane Vertical Farming Facility (TVFF) and Tshwane Clothing and

Textile Hub (TCTH). The Terms of Reference (ToR) for both projects is currently been developed to solicit the

professional service of a Transactional Advisor to develop a business plan.

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3.3.4 PROJECT IMPLEMENTATION

Number of projects in implementation: Tshwane Automotive SEZ

The automotive SEZ offers a diversity of appropriate land uses and other economic activities, which spans

over 224 hectares that includes 4 potential development phases:

• Phase 1 & 2 on 81.6 hectares of Tshwane Owned Land for the development of a Supplier Park and

TEDA has submitted township establishment application;

• Phase 3 on 81 hectares of Tshwane Owned Land for the development of mix-use Industrial, Retail and

Residential space;

• Phase 4 on 42 hectares for Mix used, situated on a privately owned land portion. Consultations are

underway with CoT to consider land swap alternatives upon such time that comfort is obtained that

socio-economic objectives are met in Phase 1 to 3 before this phase will be activated.

Budget re-prioritization to be undertaken to give effect to the bulk infrastructure requirements and delivery. The

City of Tshwane will budget and roll out the bulk infrastructure for phase 1 and the DTI and GDED will implement

the top structure/improvements inside the SEZ fence including the SEZ fence. It is evident that the project

requires a committed multi-stakeholder approach. It is also clear that the 1 November 2019 target is critical and

falls within other programs such as the Presidential Investment Summit as well as the Ford Motor Company

expansion rollout.

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4. FINANCIAL PERFORMANCE

PLEASE REFER TO ANNEXURE A

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5. GOVERNANCE

5.1 BOARD COMPOSITION

Table 6: Board Composition

Board Member Capacity: Executive / Non-

Executive

Race Gender Board Committee Membership

Nils Flaatten Non-Executive Director

White Male Chairperson of the Board

Andries Nkome Non-Executive Director

African Male Remunerations and HR Committee (Chair) Social and Ethics Committee Projects and Investment Committee

Faizal Docrat Non-Executive Director

Indian Male Social and Ethics Committee(Chair) Projects and Investment Committee Finance and Risk Committee

Sihle Shange Non-Executive Director

African Male Projects and Investment Committee (Chair) Remunerations and HR Committee Finance and Risk Committee

Solly Mogaladi Executive Director African Male Chief Executive Officer

Zane Mheyamwa Executive Director African Male Chief Financial Officer

Mpho Sedibe Non-Executive Director

African Female Remunerations and HR Committee Projects and Investment Committee Finance and Risk Committee

Nadira Singh Non-Executive Director

Indian Female Finance and Risk Committee (Chair) Social and Ethics Committee Projects and Investment Committee

5.2 BOARD AND COMMITTEES

Indicated in the table below are the Board and committee meetings held during the period under review.

Table 7: Board and committee meetings for the quarter

Board Members

No of meetings

Bo

ard

Fin

ance

&

Ris

k

HR

& R

em

co

Pro

ject

s &

Inve

stm

en

ts

Soci

al &

Eth

ics

AG

M

AP

C

Oth

er*

Nils Flaatten 2 - - - - - - -

Andries Nkome 2 - - - - - - 2

Faizal Docrat 1 2 - - - - - 4

Mpho Sedibe 2 2 - - - - - -

Nadira Singh 2 2 - - - - 2 1

Sihle Shange 2 2 - - - - - -

* Other meetings refer to Sessions with Lawyers, Mentorship, Interview panelists, Workshop.

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5.3 DIRECTORS REMUNERATION Table 8: Non-executive director’s remuneration for the quarter and year to date

Board Members July August September Total

Nils Flaatten 15 000 13 825 - 28 825

Andries Nkome 18 170 - 2 270 20 440

Faizal Docrat 11 360 20 440 6 810 38 610

Mpho Sedibe 17 775 15 800 - 33 575

Nadira Singh 9 875 43 450 - 53 325

Sihle Shange 17 775 15 800 - 33 575

Sub- Total 89 955 109 315 9 080 208 350

Table 9: Executive remuneration for the quarter

Name Designation Total

S Mogaladi Chief Executive Officer R 632 953

K Liebenberg Executive: Investment Promotion and Funding R 398 262

M Leshilo Executive: Project Portfolio Management R 452 145

S Makgatho Company Secretary R 319 500

V Mweli Acting Executive: Investment Promotion and Funding R 399 304

*Z Mheyamwa Chief Financial office R 142 500

TOTAL R 2 344 664

*CFO joined TEDA in September 2019

5.4 RISK MANAGEMENT AND INTERNAL CONTROLS

5.4.1 Risk Management

In terms of Section 95(1)(c)(i) of the Municipal Finance Management Act, 2003 requires that: “The

accounting officer of a municipal entity is responsible for managing the financial administration of the entity,

and must for this purpose take all reasonable steps to ensure –

(c) that the entity has and maintains effective, efficient and transparent systems:

(i) of financial and risk management and internal control”

The Accounting Officer- the CEO, started a process to embed risk culture within the entity’s business model.

To this end, the reports are on a regular basis submitted to the following structures to provide oversight on

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risk management: Audit and Performance Committee, Board of Directors (BoD, Finance and Risk Committee

(FinRisk), and Operational Clean Audit (OPCA).

Risk assessment

Risk review assessments on the operational level were concluded for the entity during the first quarter of

the current 2019/20 financial year. The strategic risk register for the entity is yet to be finalised by

Management.

5.4.2 Internal Controls

In terms of section 165 sub-section (2) of the Municipal Finance Management Act, the internal audit unit of

a municipality or municipal entity must prepare a risk-based audit plan and an internal audit program for

each financial year and advise the Accounting Officer and the audit committee on the implementation

following:

Internal controls;

Risk and risk management;

Performance Management; and

Compliance with this Act, the annual Division of Revenue Act and any other applicable legislation.

Progress on implementation of coverage plan

The following table and graph depict the progress on the planned audit for 2019/2020 as at 30 September 2019

Description Qtr. 1

Jul – Sep 2019

Qtr. 2 Oct-Dec 2019

Qtr. 3 Jan – Mar

2020

Qtr. 4 Apr-Jun 2020

Status of delivering on the approved coverage audit plan

Planned Audit (Target) 1 5 10 15 18

Actual Audit Finalised (Total Target (Planned) / Total actual) 1

Number 4

% 80%

Status Ad-hoc /or Special Requests

Number of ad-hoc /or special requests 1 0

Actual ad-hoc /or special requests

finalised (Total requests / Total actual) 1

Number 0

% 0%

Total on status of both approved coverage audit plan and ad-hoc & special request

Total Target 1 & 2 5

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Description Qtr. 1

Jul – Sep 2019

Qtr. 2 Oct-Dec 2019

Qtr. 3 Jan – Mar

2020

Qtr. 4 Apr-Jun 2020

Actual Finalised (Total Planned Audit / Total actual per coverage plan and ad-hoc/special requests) 1

Number 4

% 80%

Note:

1. Total number of audits per quarter are cumulative on the status of audits per approved coverage audit plan and ad-hoc & special requests

2. The total target number of audits is only for audits per approved coverage plan (2018/19) and exclude ad-hoc and special review requests

3. The total performance percentage is based total planned (Target) after deducting total deferred and transferred audits / total number of audits completed as at the end of

quarter three (3)

Summary status of audits in-progress; not yet started and deferred audits:

Description Qtr. 1

Jul – Sep 2019

Qtr. 2 Oct-Dec 2019

Qtr. 3 Jan – Mar

2020

Qtr. 4 Apr-Jun 2020

Planned Audit (Target) In-progress 1

Not Started 0

Deferred 0

A total of 5 audits were planned for the quarter ended September 2019 of 2019/20 audit cycle and 4 audits were

completed during the quarter of which all 4 are from the currently approved coverage plan (2019/20), representing

80% (4/5x100) of the activity level, which indicates that department has under achieved against the target for quarter.

One audit is still in progress of which is the operational review (Trade & investment strategy).

Below is a summary overall control assessment for audits completed during the quarter:

Audit Focus Areas / Process Areas Overall Controls Assessment

Control Design

Control Implementation

Trend

Annual Financial Statement (2018/19) review Neutral

Continuous Audit Monitoring (IA – Log) (Q1) Neutral

Audit of Performance Information (Q4) of 2018/19 Improved

Annual Report Review and Annual Performance (2018/19) Neutral

- Adequate/Effective - Requires Improvement - Inadequate/Ineffective

Trend = either improving; neutral; deteriorating or N/A= not applicable

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Performance Management

In line with the approved coverage audit plan for the 2019/20 financial year, the audit of performance

information (AOPI) for quarter one (1) of 2019/20 financial year has not yet started and will commence 10 –

15 days after the end of the quarter. Furthermore, the audit is actually planned in quarter two (2).

Municipal Continuous Audit Monitoring

The City of Tshwane has constituted an oversight governance structure called Municipal Continuous Audit

Monitoring (MCAM). MCAM is a structure that is chaired by the City of Tshwane Group Chief Financial

Officer, and all Group Heads including Chief Financial Officers and Chief Executive Officers of entities have

standing invitations. The purpose of the MCAM is to monitor progress made on corrective action taken or to

be taken in response to issues raised in the AG (SA) management letter as well as Internal Audit previous

findings to ensure that those issues are ultimately resolved. Furthermore, the structure focuses on the

performance of risk to deal with emerging and materialised risks in pursuit of clean administration, sound

governance, and sound financial management. The bigger picture is for the City and its Entities to achieve

its mandate of achieving good governance and sound financial administration, with its outcome being

integrated reporting in general and clean audit outcome in particular.

Group Audit & Risk of the city has a role as part of MCAM to validate issues that management purports to

have resolved in order to give reasonable assurance that those issues are indeed resolved /or not.

Below is a summary table and graph of progress made with regard to the implementation of action plans to

address the Internal Audit log for quarter one (1) per management assertions as well as per internal audit

validation:

Summary of Status of Internal Audit findings as at end of June 2019 Summary of Status of Internal Audit findings as at end of September 2019

Total

no. of

IA TEDA

findings

log

Resolved by assertion

In Progress

Repeat IA issues

Unresolved items

Risk Tolerance

Total

no. of

IA TEDA

findings

log

Resolved by assertion

In Progress

Repeat IA issues

Unresolved items

Risk Tolerance

27 22 3 0 2 27 22 3 0 2

82% 11% 7% 82% 11% 7%

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5.5 LITIGATIONS

Six (6) cases were reported in the 2018/19 financial year. Five (5) investigations cases are still underway and

one (1) case has been closed.

Resolved82%

In Progress

11%

Unresolved7%

TEDA status of Internal Audit Log as at June 2019

Resolved82%

In Progress

11%

Unresolved7%

TEDA status of Internal Audit Log as at September 2019

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6. HUMAN RESOURCES

6.1 HEAD-COUNT & RECRUITMENT

The table below presents filled and vacant positions as per the new, approved organizational structure:

6.1.1 RECRUITMENT

Role Nature of position Recruitment Status Comment

Executive Manager: Corporate Services

Fixed Contract Appointment recommendation approved

The candidate accepted the offer with effect from 01 October 2019

Chief Marketing Officer Fixed Contract Screening Advert closed on the 06 September 2019

Executive Manager: Asset Portfolio Management

Fixed Contract Screening Advert closed on the 06 September 2019

Senior Manager: Business Retention and Expansion

Permanent Screening Advert closed on the 06 September 2019

Senior Manager: Area Based Development


Senior Manager: Project Implementation


Business Units Approved Posts as per the structure

No of filled posts

Vacant posts

Office of the CEO 7 4 3

Company Secretary 3 3 0

Office of the CFO (Financial Services)

8 8 0

Corporate Services 13 8 5

Destination Marketing 6 0 6

Trade and Investment Promotion 10 8 2

Internal Audit 2 0 2

Risk and Compliance 1 0 1

Projects Portfolio 10 4 6

Total 60 35 25

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6. 2 SKILLS DEVELOPMENT

6.2.1 MINIMUM COMPETENCIES FOR FINANCIAL OFFICIALS

The National Treasury requires that Finance and Supply Chain Management officials and Senior Managers

complete the minimum competency programme. A mop-up programme was created to assist employees to

compile submissions for outstanding modules related to the MFMA programme.

6.2.2 RECOGNITION FOR PRIOR LEARNING FOR EXECUTIVE MANAGEMENT LEVEL

TEDA executives are required to attain minimum competencies for Senior Managers. Recognition for prior

learning was considered a suitable form of study for executives who also have the responsibility to provide

leadership in their daily roles. Two (2) executives have completed the programme and one (1) executive

submitted during the period under review.

6.2.3 PLANNED TRAINING INTERVENTIONS

Following the finalisation of performance contracting and development of personal development plans for

the financial year 2019/20 a training and implementation plan was developed. The Human Resources unit is

currently in the process of sourcing training with various service providers. The following training

interventions took place in quarter 1.

Competency for development

Course Date Service Provider Delegates

Management Skills Supervisory Management Skills

11-13/09/2019 UP Enterprise 1

Biogas latest trend SABIA National Biogas Conference

14-16/08/2019 SABIA 2

6.3 REMUNERATION EXERCISE

An internal salary parity exercise was conducted to analyse the remuneration patters in TEDA. A

benchmarking exercise was also conducted to compare the TEDA remuneration rate with the external

market. A report was referred to the HR and Remuneration Committee for processing.

6. 4 PERFORMANCE MANAGEMENT

Our Performance Management strategy includes a balanced scorecard, used to measure performance

output towards achieving TEDA strategic objectives. Core Managerial Competencies form part of executives

and management performance contracts. The annual performance reviews for quarter 4 of the 2018/19

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financial year were conducted during the month of July 2019. The performance contracting for the new

performance year cycle 2019/2020 was also finalised. The statistics for the performance evaluations and

contracting is the figures below:

Figure 1: Illustration of Performance review compliance

Hundred percent (100%) compliance was achieved on performance reviews for quarter 4 of the 2018/19

financial year.

Figure 2: Illustration of Performance Scorecard contracting compliance

At the time of concluding 2019/20 Performance Agreements (PAs) including Personal Development Plans,

the headcount was 35. Ninety-seven percent (97%) compliance was achieved on the contracting scorecard.

Three percent (3%) was not completed.

94%

6%

100%

PERFORMANCE REVIEW COMPLIANCE Q4 2018/19

Completed 94% Not Completed 6% Compliance 100%

97%

6%

PERFORMANCE MANAGEMENT SCORE CARDCOMPLIANCE 2019/20

Score card signed: 97%

Not completed 3%

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Figure 3: Illustration of Personal Development Plan compliance

Eighty-five percent (85%) compliance was achieved on contracting PDPs and fifteen percent (15%) of

employees are still to submit PDPs.

6. 5 HUMAN RESOURCES MANAGEMENT POLICY REVIEWS

As part of developing the organisation, the policies are currently being reviewed and aligned with legislation

and the envisaged culture of high performance. To date the following policies were reviewed and are due

for validation by the service provider for compliance with relevant legislation:

• Leave policy

• Talent Acquisition Policy

• Condition of services

• Disciplinary Code and Procedure

85%

15%

PERSONAL DEVELOPMENT PLANCOMPLIANCE 2019/20

PDP submitted: 85%

Not submitted: 15%

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7. DEPENDENCIES AND CROSS-CUTTING ISSUES

Good relationships between City’s Departments and TEDA have been established and are maintained.

8. OPERATION CLEAN AUDIT

Table 10: Evidence

Evidence for the quarter submitted with the report (Yes/ No)

Entity evidence files updated, centralised and verified in the department (Yes/ No)

If no, indicate a corrective measure

Entity project files for the quarter compiled, centralised and verified (Yes/No)

If no indicate a corrective measure

Yes N/A N/A N/A N/A

The table below provides a summary of the Auditor General’s findings raised in the 2017/18 financial period.

Table 11: Action plan based on 2017/18 Auditor-General’s report

Classification Number of findings

Repeat findings Number of findings resolved

Number of findings not yet resolved

Annexure A: Matters affecting the audit report

0 0 0 0

Annexure B: Other important matters 3 0 3 0

Annexure C: Administrative matters 0 0 0 0

TOTAL 3 0 3 0

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Table 12: OPCA controls and interventions

Number Finding Recommendations by the Auditor General

Background Action plan Responsible person

Due date Progress

ANNEXURE B: OTHER IMPORTANT MATTERS

1. Overstatement of Commitments

Audit finding

It was noted that the amount

disclosed in the financial

statements under note no. 33

include some of the contracts

that the entity entered into

during the financial year under

audit which have been paid

before year-end.

Internal control deficiency

Management did not ensure that the commitments schedules are adequately reviewed and contracts settled during the year are excluded from the schedule and financial statements. There was a lack of quality review and reasonableness analysis of the commitments note by management before disclosure in the financial statements. Impact

Misstatement of commitments disclosure note and will result in the adjustments of financial statements. Recommendation

Management should review internal controls relating to

Management comment on audit finding: Management agrees with the audit finding the amount disclosed under Commitments note no. 33 erroneously included an amount that was paid before year-end and resulted in overstatement and as such the commitments and the annual financial statements will be corrected. Management comment on internal control deficiencies Management agrees with internal control deficiencies of ensuring that the commitment schedule is adequately reviewed. The error is an isolated event since the commitment register is maintained on the excel spreadsheet inherently susceptible to minor errors and as such the commitment schedule will be reviewed and approved monthly by two independent officials and the approver being the Senior Manager. Management comment on

the recommendation

No further action required as this was an isolated error that was corrected.

Acting Chief Financial Officer

Immediate No further action required as this was corrected.

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Due date Progress

commitments to ensure that information provided for disclosure in the financial statements is relevant, accurate and reliable.

Management should monitor the contract management unit and obtain a list of all the contracts that the entity has entered into to determine the extent of the entity’s commitments based on all the approved contracts. The commitments register/schedule must be prepared and reviewed on a monthly basis by the SCM or finance manager.

Management should adjust the commitments amount disclosed in the financial statements.

Management will continue to review internal controls relating to commitments to ensure that information provided for disclosure in the financial statements is relevant, accurate and reliable. Contract Management will be enhanced in order to determine the extent of the entity’s commitments based on all the approved contracts. The commitments register/schedule will be prepared and reviewed on a monthly basis by the SCM or Finance Manager.

2. Predetermined objectives – Consistency of objectives

Audit finding

During the usefulness test for the Audit of Predetermined Objectives (AOPO) the following consistency issues were identified: Objective 4: Annual Performance achieved in the annual performance report (APR) is named as “Unqualified audit opinion achieved for 2017/18” and on the Business Plan is stated as “Clean audit

Management comment on audit finding: Management agrees with the finding regarding the consistency in the APR and BP. The KPI reflects the intention to attaining the same outcome as was achieved in the 2016/17 financial year and that is why the planned target as per the business plan refers to “at the end of

No further action required as the finding was corrected.


Immediate No further action required as this was corrected.

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Due date Progress

opinion achieved at end of audit”. This raises the issue of consistency between the APP and the APR and also creates a false impression as the 2017/18 audit is still under review or in process. Internal control deficiency

Performance Management Prepare regular, accurate and complete performance reports that are supported and evidenced by reliable information. Recommendation

Management should ensure that adequate reviews are conducted on the Business Plan and APR to ensure that there is consistency and no non-compliance with Framework for strategic plans and annual performance plans (FSAPP) paragraph 5.3.6

the audit“. Milestones towards these have been the fact that the non-material findings in the 2016/17 audit by AGSA were addressed during the audit. In addition, we have been reporting the fact that the agency has not had UIFW in the various quarterly reports which have been internally audited. Secondly whilst it is acknowledged that the use of different terminology could be read as being inconsistent, conceptually “Clean Audit” refers to “unqualified without repeated findings. The inconsistency discovered between the APR and BP on Strategic Objective 4 was an isolated incidence and management will correct the annual performance achieved on the APR. Management comment on

internal control deficiencies

Management agrees with the internal control deficiencies regarding adequate proper reviews of the BP and APR to eliminate

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Due date Progress

amongst others inconsistencies. Reviews of all completed work is always a primary objective for TEDA. One of the internal controls in place is that of TEDA Exco which strives to ensure that accurate and complete performance reports are evidenced with reliable information. Management comment on

the recommendation

Management agrees with the recommendation. Management will ensure the BP and APR are adequately reviewed for consistency and complies with the Framework for Strategic Plan and Annual Performance Plan.

3. Non-compliance with SARS payment dates

Audit finding

During the audit of expenditure

and employee cost, it was noted

that the entity has incurred

fruitless and wasteful

expenditure due to penalties

charged by SARS. The fruitless

expenditure resulted in non-

compliance with the SARS

requirement for payments to be

Management comment on audit finding Management agrees with the audit finding that the entity has incurred fruitless and wasteful expenditure due to penalties and interest charged by SARS as a result of late payment for the May 2018 PAYE. The late payment is an isolated incidence which was due to changes in the banking platform from

Ensure that SARS payments and returns are processed before the cut of date.


On-going SARS payments and returns as at the reporting date have been processed before the cut of date.

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Due date Progress

made within 7 days after the

end of the month of submission,

the entity submitted and paid 8

days after the end of the month.

Internal control deficiency

Performance management Management did not ensure that there is adequate review processes in place to ensure that SARS payments and submissions are made on time. Management did not provide sufficient oversight controls over legislated timelines for submissions to ensure that they comply with SARS submission dates. Recommendation Management should review internal controls relating to compliance with applicable legislation to ensure that they are effective and compliance with timelines are monitored.

Management should monitor the returns submitted to SARS regularly and ensure that they submit and pay 7 days before the cutoff dates to provide for enough time to correct errors and to ensure compliance.

Standard bank to Absa bank where the batch released for payment did not transmit and clear on time into the SARS system. Management comment on internal control deficiencies Management agrees that the review processes of ensuring that SARS payments and submissions are made on time is not adequate. Management has developed an action plan aimed at ensuring that all statutory payments and submissions are processed timeously to eliminate non-compliance with the income tax act. Management comment on the recommendation Management agrees with the recommendation and measures have been put in place to avoid the occurrence of such nature. Payments to SARS for PAYE will be processed and submitted before the cut-off dates to provide for enough time to correct errors and ensure compliance.

88



9. CONCLUSION AND RECOMMENDATIONS

The 2019/2020 first quarter report indicates that TEDA is on course with regard to the achievement of its

targets. Systems are in place to ensure that the clean audit is maintained for this financial year.

89



ANNEXURE A: FINANCIAL PERFORMANCE

90



ANNEXURE B: RISK REGISTER

91

ANNEXURE: D

PROJECTS REPORTED MILESTONES FOR QUARTER 1

Department Project Name Budget Region Planned Q1 Target Milestone Status Milestone Comment Economic Development and Spatial Planning

(700574) Rosslyn Urban Realm Upgrade and Multi Modal Interchange

R14 000 000,00 Region 1 Construction of 0.100 paving blocks walkways

Completed;In Progress 1.2km construction of base layers for the walkways is complete in preparation for stabilization process according to the structured program of works.;WBS created, Appointment in palce, Commitment created on SAP. 1st payment, certificate in process

Electricity (710005) Upgrading/Strengthening of Existing Network Schemes - City Wide

R7 500 000,00 City Wide Process and supply all connections application received (Application driven)

(blank) (blank)

Electricity (710006) Payments to Townships for Reticulated Towns (City Wide)

R5 000 000,00 City Wide Will complete all applications received.

Not Started This project is application driven. All applications received will be completed. One application received July and completed.

Water and Sanitation

(710023) Lengthening Of Network & Supply Pipelines

R8 000 000,00 City Wide 500m of water pipe installation

In Progress 1 187m of water networks were in stalled in September 2019


(710026) Replacement Of Worn Out Network Pipes

R80 000 000,00 City Wide 2250m of water network replacement

Not Started 7 056m of water networks replaced for the year to date till September 2019. Replacements were done in the following areas: Babelegi, Clubview/Hennopspark, Lynnwood Glen

Roads and Stormwater

(710116) Essential/Unforeseen Stormwater Drainage Problems

R7 000 000,00 City Wide Procurement processes In Progress The Tender is not yet advertised. The process is facilitated by Infrastructure Asset Management. They are currently in the process of approval of the document before the tender can be advertised., for the appointment of

ANNEXURE D92

Department Project Name Budget Region Planned Q1 Target Milestone Status Milestone Comment both the consultant and the contractor service provider.


(710128) Concrete Canal: Sam Malema Road, Winterveldt

R25 000 000,00 Region 1 Completion of Culvert Road Crossings

In Progress;Not Started Construction has not started, appointment letter was received on 23 September 2019. Awaiting signed contract document to arrange for site had over;Construction has not started, as the appointment of contractor has not been approved by BAC;Tender evaluated and report submitted to BAC


(710143) Major Stormwater Sytems Kluipkruisfoitein R9 000 000,00 Region 1

Subbase = 1.076km and Base = 0.6km In Progress

Roads = 0.3km; stormwater = 0.122km and sidewalks = 0.6km completed

Electricity (710178) Electricity for All - Region 4 R2 000 000,00 Region 4

Construction of infrastructure backbone with 0 connections. Delayed;Suspended 0 connections ;7 connections achieved

ICT, Applications & Infrastructure

(710200) Upgrade of IT Networks R20 000 000,00 City Wide

sourcing of price quotation Not Started

Quotes have been received,awaiting rest of the quotes


(710213E) Electronic Document Management System R5 000 000,00

Administrative HQ

Appointment of a service provider Not Started

Development of the tender specification is underway;Tender specification was done and sent for review, re-working on the spec to apply revised changes. ;The tender specification has been completed, a memo to SCM to appoint a service provider has been prepared and submitted to top management for review


(710213M) Mobile Application Development (OITPS) R5 000 000,00

Administrative HQ

Analysis and Blueprint Report Suspended Tender was cancelled.


(710213N) Solution Manager and Single Sign-on R7 000 000,00

Administrative HQ Appointment of supplier Not Started BEC underway


(710213S) Cyber Security R3 000 000,00

Administrative HQ None Completed;In Progress

Awaiting delivery of the Security Operations Centre infrastructure;(blank)

93

Department Project Name Budget Region Planned Q1 Target Milestone Status Milestone Comment


(710223) Rehabilitation Of Bridges R7 000 000,00 Region 3

Briefing of the bidders for the appointment of the contractor In Progress

The Tender is not yet advertised. The process is facilitated by Infrastructure Asset Management. They are currently in the process of approval of the document before the tender can be advertised., for the appointment of both the consultant and the contractor service provider.


(710229T) Traffic Calming And Pedestrian Safety For Tshwane R10 000 000,00 City Wide

Construction of 25 Traffic Safety Measures In Progress

52 Job cards issued to the contractor on 11 September 2019 and construction has started;Safety measures are being evaluated ;Safety measures have been identified and evaluation has been started


(710268) Computer Equipment Deployment - End user computer hardware equipment R10 000 000,00 City Wide

Appointment of service provider Not Started;(blank)

Awaiting appointment letters to be signed by the City Manager.;Awaiting for SCM to advertise to the panel;(blank)


(710276) Upgrading And Extension Of Market Facilities R2 000 000,00 Region 3

Approved TAR and scope of works for appointment of a consulting engineer; Finalize cost estimated for rocker bins and trolleys

Completed;Not Started;Suspended

Decided to put milestone on hold until resources are ;Due to lack of external resources need, the milsestone was suspended;Milestone suspended due to lack of resources from CoT and budget cuts;(blank)

Electricity

(710325) Communication Upgrade: Optical Fibre network R10 000 000,00 City Wide 2,5 Km of 10 km (blank) (blank)


(710344) Implementation Of Storage Area Network R20 000 000,00 City Wide None Not Started

Tender evaluation and appointment to be completed ;(blank)


(710411A) Sunderland Ridge WWTW 50 Ml/d Extension R5 000 000,00 Region 4

Procurement process and tender award Not Started

The tender evaluation is delayed at SCM.

94



(710411D) Ekangala WWTW R5 000 000,00 Region 7


Milestone not achieved. Project specification is still in progress to be submitted before 4 October 2019.


(710411D) Extension of Rooiwal Waste Water Treatment Works R75 000 000,00 Region 2

Modules 1-4: Mechanical and electrical refurbishment of the existing ferric chloride dosing In Progress;Not Started Tender at BEC;(blank)


(710411I) Temba and Babelegi WWTW upgrade of existing infrastucture R20 000 000,00 Region 2

Submission of assessment report of all outstanding works. Not Started

Project specification is completed, submitted for comments and approval


(710609S) Shova Kalula Bicycle Project R10 000 000,00 Region 1

Site hand over, documentation submission, site establishment. Completed The contractor has established site.

Housing and Human Settlement

(710863) Bulk Reservoir - Fortwest X4&5 R20 000 000,00 Region 3

Procurement of a consulting engineer and contractor inclusive of designs In Progress;Not Started

Bid specification in process;No progress;Tender specifications for consulting engineer approved


(710863) Water provision - Hammanskraal West X10 (Bulk water line) R30 000 000,00 Region 2

Excavations, bedding, pipe laying, blanket and back filling In Progress

Setting out, excavations, bedding, pipe laying, blanket and back filling in progress


(710863) Water provision - Rama City (20 ML Reservoir) R25 000 000,00 Region 1

Finalization of procurement plan Delayed;Not Started

Bid specification circulating for approval;No progress;Tender specifications approved for appointment of consulting engineers


(710863) Water provision - Soshanguve MM (80 Stands) R2 000 000,00 Region 2

Procurement process for consulting engineer for design development Delayed;Not Started

Due to the small size of the project, it has been decided that engineering designs should be done internally. A request for designs has been sent to Water and Sanitation for them to develop designs before the department can proceed with the appointment of a contractor.;Due to the small size of the project, it has been decided that engineering

95

Department Project Name Budget Region Planned Q1 Target Milestone Status Milestone Comment designs should be done internally. Water & Sanitation will be requested to assist with developing designs


(710863) Water provision - Winterveldt 20ML Reservoir R30 000 000,00 Region 1

Finalise designs & approvals Delayed

The drilling for foundation investigation has been completed and the test results are yet to be released.


(710863) Water Provision - Winterveldt Bulk water line (5,5 km line) R20 000 000,00 Region 1

Procurement of a consulting engineer and contractor inclusive of design reviews Completed;Suspended

The contractor has been requested to focus on finishing the roads prior to commencing with the bulk water pipeline;The milestone was completed in January 2018.


(710863) Water reticulation - Mamelodi X6 erf 34041 (Phomolong) R9 000 000,00 Region 6

Procurement process for consulting engineer for design development

Delayed;In Progress;Not Started

Design Development will commence once the professional services provider has been appointed. The Department has commenced with the process of drafting the specification;The specification for the appointment of a professional service provider has been approved;The specification of the appointment of a professional services provider is currently underway


(710864) Bulk Sewer - Hammanskraal West X10 R40 000 000,00 Region 2

Excavations, bedding and pipe laying Delayed Shortage of material on site.


(710864) Bulk Sewer Line - Winterveldt R33 000 000,00 Region 1

Procurement process for consulting engineer for design development Completed;Suspended

Contractor was appointed in January 2018;The contractor was requested to focus the resources on completing the roads before commencing with the bulk sewer.


(710864) Sewer provision - New Eersterust X8 (Tswaing) (Pump Stations ) R20 000 000,00 Region 2

Procurement process for consulting engineer for design development Delayed;Not Started

Specifications in progress;Tender specifications in progress;The tender specifications approved

96



(710864) Sewer reticulation - Mamelodi X6 erf 34041 (Phomolong) R12 000 000,00 Region 6

Procurement process for consulting engineer for design development Delayed

The specification has been approved for the appointment of the professional services provider


(710865) Construction of roads & stormwater - Soshanguve ext19 R20 000 000,00 Region 1

Procurement process for consulting engineer and contractor Not Started

A request was prepared and sent to SCM, however it was returned to the Department pending the finalization of the panel appointment;Awaiting the issuing of appointment letters to panel members


(710865) Construction of roads & stormwater - Soshanguve South X12 R40 000 000,00 Region 1

1km of Excavations, bedding and laying of stormwater pipes Delayed;In Progress

Contractor has been progressing slowly on site;(blank)



Excavations, bedding and laying of stormwater pipes In Progress (blank)



Attending to snags for 3km of roads and stormwater. In Progress (blank)


(710865) Construction of roads & stormwater - Thorntree View R15 000 000,00 Region 1

Procurement of consulting engineer & contractor In Progress;Not Started

Specifications for appointment of consulting engineers has been submitted to SCM to advertise ;Turnkey contract expired, a new appointment to be made;(blank)


(710865) Construction of roads & stormwater - Zithobeni Heights (4 Road intersections) R20 000 000,00 Region 7

Procurement of consulting engineers and contractor Not Started

No progress;Tender specifications in progress;The tender specifications in progress

Shared Services (710869) Purchase of Vehicles (City Wide) R40 000 000,00 City Wide

Purchase of City wide vehicles Not Started

Needs analysis is underway to determine the requirements;(blank)

97



(710878K) Sewer reticulation Kudube 5 R10 000 000,00 Region 2


Milestone not achieved. Recently submitted a project specification for comments and approval.


(710902) Rehabilitation Of Roads R17 593 929,00 Region 1 Procurement Processes In Progress

Tender documentation processes as facilitated by Infrustracture Asset Management section is complete. The contractor appointed from their panel of maintenance is in place.


(711164) Upgrading of roads and stormwater systems in Soshanguve Block W: North East R20 000 000,00 Region 1

Site establishment and exposing of 2km of services Suspended

Contractor has submitted the letter of termination. The contractor has been disrupted by some community members numerous times to commence with site establishment. Gunshots have been fired twice within two months preventing the contractor from establishing site offices. The intervention from the Councillor could not assist.


(711164) Upgrading of roads and stormwater systems in Soshanguve Block W: South East R3 000 000,00 Region 1 No work planned Not Started No work planned


(711213) Stormwater Drainage Mahube Valley R3 000 000,00 Region 6 Design review Not Started

Tender document still with COOs office for approval.


(711265) Hartebeest Spruit: Canal Upgrading R1 500 000,00 Region 3

Constructed outlet Structure of Canal Not Started

Construction has not started as the report for the appointment of contractor has not been approved by BAC;Construction has not started, as the report for the appointment of contractor has not been approved yet


(711268) Montana Spruit: Channel Improvements R12 500 000,00 Region 2

Tender Preparation, Tender Advertisement, Tender Evaluation and Appointment of Consultant Not Started

Tender Documentation and TAR for the appointment of Contractor sent to Infrastructure Provision for Evaluation.

98



(711273) Major Stormwater Drainage System: Majaneng R26 000 000,00 Region 2

Construction of 0,15km of stormwater In Progress

0,090km of stormwater completed, construction of 0,2km of Box Culvert Brickwork, Laying of 0,36km of Subsoil drain pipes


(711335) Heights Iscor Feeder R11 500 000,00 Region 3

2960m of water pipes installation Not Started

Backfilling between 400mm and 630mm is at 53%, bedding and pipelaying are 100% completed. Construction of chambers 23%

Sports, Recreation & Infrastructure Development

(711442) Upgrading of museums/historical buildings R5 000 000,00 Region 3

Procurement of civil engineer, feasibility study and, compile scope of work and tender documentation. In Progress;Not Started

Assessment of upgrading work in process by internal architect. ;(blank)

Emergency Services

(711455) Renovation & Upgrading Of Facilities R10 000 000,00 City Wide

Complete detailed designs. Submit bidding documents to SCM to be tabled at BSC. Evaluation of bids and submit to BAC for approval. Completed;Not Started

Completed;Design development drawings completed;Priced documentation completed;Tender documentation compiled

Environmental Management & Parks

(711562) Atmospheric Pollution Monitoring Network R1 500 000,00 Region 1 Planning In Progress

Quotes were submitted to buyers for creation of POs


(711712) Development of Saulsville hostels R15 000 000,00 Region 3

Procurement of contractor Delayed;Not Started Tender specifications in progress


(711713) Development of Mamelodi hostels R10 000 000,00 Region 6

Procurement of contractor

Delayed;In Progress;Not Started

The designs will be developed once the professional services provider has been appointed.;The process of developing the specification for the appointment of a professional services provider has commenced.;The specification had to be re-drafted taking into consideration the requests from residents

99


Electricity

(711862 ) Prepaid Electricity Meters - Conventional R2 000 000,00 City Wide

Installation of conventional meters In Progress WBS delayed due to electronic files

Electricity

(711862 ) Prepaid Electricity Meters - New R16 500 000,00 City Wide

Installation of new prepaid connections In Progress Delayed WBS due to electronic files

Electricity

(711862 ) Prepaid Electricity Meters - Replacement R16 500 000,00 City Wide (blank) (blank)


(711863) Internal Roads Ga-Rankuwa Zone 4 R15 000 000,00 No Intersect Design Review Not Started (blank)


(711863) Internal Roads Mandela Village R3 000 000,00 Region 2

Construction of 1.5 Selected layers In Progress Selected layers=1.5Km, Completed


(711863) Internal Roads: Northern Areas R4 000 000,00 Region 1 Design Review Not Started


Health Services

(712028) Upgrade Workflow System for Health-ERP R7 000 000,00 City Wide

Advertising the tender, evaluation of bidders and adjudication completed. Issuing the letter of appointment to the service provider Completed;Delayed

Evaluation of received bids completed and report to serve at BAC.;None


(712219) Flooding Backlogs: Stinkwater & New Eersterust Area R3 000 000,00 Region 2

Tender preparation, Advertise, Evaluation and appoint a Consultant Not Started

Comments raised by COO’s Office for the appointment of Consultant have been revised.


(712220) Soshanguve Block FF East Area 1 R18 000 000,00 Region 1

Tender evaluation; Obtain BAC approval and appointment letter; Apply for Construction work permit; Not Started

Tender evaluation has been completed in July 2019. Awaiting for appointment letter.


(712220) Soshanguve Block FF East Area 2 R27 000 000,00 Region 1

Tender evaluation; Obtain BAC approval and appointment letter; Apply for Construction work permit; Not Started

Tender evaluation has been completed in July 2019. Awaiting for appointment letter.

100



(712220) Soshanguve Block L Area 2 R5 000 000,00 Region 1

Tender preparation, obtain approval of TAR and advertise tender; Tender evaluation and obtain BAC approval; Apply for Construction work permit; Not Started

Tender document has been completed and submitted to the Office of the COO in July 2019 for approval. Awaiting for approval from the Office of the COO to advertise the tender.


(712220) Soshanguve Block L North R10 000 000,00 Region 1

Tender preparation, obtain approval of TAR and advertise tender; Tender evaluation and obtain BAC approval; Apply for Construction work permit Not Started



(712220) Soshanguve Block L North West Area 1 R10 000 000,00 Region 1 In Progress

Roads = 1.277km; Sidewalks = 0.711km and Speedhumps = 7No completed


(712223) Flooding Backlogs: Mamelodi, Eersterust & Pta Eastern Area: Mamelodi Extension 2 R8 000 000,00 Region 6

Obtain BAC approval and appoint contractor; Site handover and site establishment; Exposing and lowering of services = 0.3km In Progress Stormwater = 0.360km completed


(712223) Flooding Backlogs: Mamelodi, Eersterust & Pta Eastern Area: Mamelodi Extension 4 R16 000 000,00 Region 6

Review designs; Prepare tender document and TAR; Obtain approval of TAR and advertise tender Not Started


Health Services (712278) Phahameng Clinic Dispensaries R9 500 000,00 Region 6

Approval of specification by the office of Chief Operations Officer Delayed

The draft BoQ awaits additional drawings (revisions) before it can be finalised. Briefing held with Architect (new) to assist with takeover of files and revisions.

Group Audit and Risk

(712449) Insurance replacements (CTMM Contribution) R15 000 000,00 City Wide

Replacement of capital assets damaged beyond repair or stolen of which In Progress (blank)

101

Department Project Name Budget Region Planned Q1 Target Milestone Status Milestone Comment the claims were settled and must be reinstated to ensure that service delivery to the City of Tshwane and community is not effected.


(712450) Insurance replacements R10 000 000,00 City Wide

Replacement of vehicles stolen, written off in accidents or hi-jakced for which the claims were settled and must be reinstated to ensure that service delivery to the City of Tshwane and community is not effected. Not Started

Await list of vehicles to be replaced from Corporate Fleet;(blank)


(712502) Traffic Flow Improvement at Intersections R3 000 000,00 City Wide

Preparation and approval of tender documentation In Progress

The tender is not yet advertised. The document is currently in process of approval and signature.


(712503) Flooding backlog: Network 3, Kudube Unit 11 R15 000 000,00 Region 2

Report to serve at BAC, Appointment of Contractor, Submission of Guarantee and Insurance Not Started

Tender evaluation has been completed on the 25 June 2019.


(712507) Flooding backlog: Network 2H, Kudube Unit 7 R3 000 000,00 Region 2

Tender preparation, obtain approval, advertise tender, evaluation and appoint Consultant Not Started

Comments raised by COO’s Office for the appointment of Consultant have been revised.


(712511) Flooding backlog: Network C5, C6, C11 & C13, Atteridgeville R10 000 000,00 Region 3

Design Review and Tender Documentation Not Started



(712513) Flooding Backlogs: Soshanguve South (& Akasia Area): Soshanguve Block TT R5 000 000,00 Region 1

Subbase and base = 0.5km In Progress

Milestone achieved in the previous months. Stormwater = 0.024km completed

102



(712513) Flooding Backlogs: Soshanguve South (& Akasia Area): Soshanguve Block WW R1 000 000,00 Region 1

Subbase = 0.2km and Base = 0.2km In Progress

Milestone achieved and reported under Soshanguve Block TT (9.712513.1.015.A).


(712513) Flooding Backlogs: Soshanguve South (& Akasia Area): Soshanguve South Extension 1 R15 000 000,00 Region 1

Await for the outcome of forensic investigation; Obtain BAC approval; Not Started

Tender evaluation report has served at the BAC on 22 November 2018. The matter was referred for forensic investigations by the CFO. Awaiting for the outcome of forensic investigation.


(712516) Flooding backlog: Network 2D, New Eersterust x 2 R20 000 000,00 Region 2

Report to serve at BAC, Appoint a Contractor and Submission of Guarantees Not Started

Tender evaluation has been completed on the 05 July 2019


(712518) Flooding backlog: Drainage canals along Hans Strydom Dr, Mamelodi x 4 and 5 R12 000 000,00 No Intersect Not Started

Milestone not achieved. The contract of consultant expires in October 2019. The Department busy with new TAR for approval by the COO.


(712523) Flooding backlog: Network 3A, Kudube Unit 9 R14 000 000,00 Region 2

Report to serve at BAC Committee, Appointment of Contractor and Submission of Guarantees Not Started

Tender evaluation has been completed on the 25 June 2019.


(712534) Doornkloof Reservoir R35 000 000,00 Region 4 Construction of roof slab Not Started

80% construction completion The Bulk Services section recommended minor design alterations posing possible extension of time request by the contractor


(712534) Relining/upgrading reservoirs R11 256 321,00 City Wide

Finalisation of contractor appointment and submission of contractual obligations. Not Started

Pla;Preparation of procurement documentation underway. ;(blank)


(712545) Giant Stadium: Buitekant Street R1 500 000,00 Region 1 0 (blank) (blank)

ICT, Applications & Infrastructure (712554A) Safe City R10 000 000,00

Administrative HQ

Appointment of service Provider Not Started

The tender is at the evaluation process, it closed on 13 September 2019

103



(712554S) Automation of waste revenue collection R8 000 000,00

Administrative HQ

Appointment of service provider Not Started

The business requirements document has been signed off, the tender specification has been drafted;(blank)

Emergency Services

(712587) Emergency Services Tools and Equipment R5 000 000,00

Administrative HQ

Bid specifications to be submitted to Supply Chain Management to be tabled at the Bid Spec Committee for the purchasing of Emergency Services Equipment. Advertisement of bids.Bids to be evaluated by BEC Completed

Bid documentation completed;Completed

Integrated Rapid Public Transport Network (IRPTN)

(712591) Atteridgeville Taxi Interchange R10 000 000,00 Region 3

Completion of Detail Designs and tender documentation Not Started Currently procuring the consultant.


(712591) Belle Ombre - Phase 2 (Overflow car park, Electric Fencing etc) R15 000 000,00 Region 3

Appointment of the contractor In Progress

The TAR has been submitted to the Office of The COO.


(712591) BRT Line 2C-January Masilela (btw Atterbury & Lynnwood Rd) R4 000 000,00 Region 6 Project not commenced Not Started Milestone is on track


(712591) Capital Park Railway Bridges (Line 1A - WP6) R68 021 000,00 Region 3

35% overall completion of the Capital Park Railway Bridges (Line 1A - WP6) Delayed Currently at 26% to completion


(712591) Line 2B: Atterbury Rd (btw Lynnwood Rd to Lois Avenue) R12 645 640,00 No Intersect

100% Completion of land expropriation legal process Not Started on track


(712591) Line 2B: Lynnwood Rd (btw Univeristy Rd to Atterbury) R12 838 857,00 Region 3

100% Completion of land expropriation legal progress Not Started On track.

104



(712591) Line 3: CBD to Attridgeville - Section 1 (CBD - Pretoria West) R29 882 653,00 Region 3

100% completion of conceptual designs Not Started

Consultant not yet appointed; milestone at 0%.


(712591) Menlyn Taxi Interchange R25 000 000,00 Region 6

Appointment of the contractor Not Started

Procurement of design consultant is delayed and subsequently delaying the appointment of contractor.


(712591) Planning and Design of BRT Projects R50 000 000,00

Administrative HQ

NONE PROJECT (PMU FEES) Not Started

Project Management Unit not yet appointed.


(712591) The Design, Supply, Installation, Operation and Maintenance of an automated fare Collection (AFC) System R10 000 000,00 City Wide

Completion of AFC Kiosk selling point equipment at Wonderboom Taxi Holding facility In Progress

Selling points will be in a form of a Mobile Kiosk to assist with AFC EMV card sales at the Wonderboom Taxi Holding facility


(712591) Wonderboom Intermodal Facility (Building Works) R43 000 000,00 Region 3

15% overall completion of the building works for Wonderboom Intermodal Facility Delayed;Not Started

Pre-site hand over took place on the 4th of September 2019.;The Contractor is currently awaiting for the Construction permit from the Department of Labour.


(712591) Wonderboom Intermodal Facility (Civil & Bulk Earthworks) R45 000 000,00 Region 2

65% Overall completion of the Menlyn Taxi Interchange Wonderboom Intermodal Facility (Civil & Bulk Earthworks) In Progress

Construction currently at 65% to completion.


(712605) Upgrading of roads and appurtenant stormwater systems in Soshanguve R5 000 000,00 Region 1 Lay 0.3km gabions Not Started Gabions = 0.094km completed


(712611) Mabopane Block B R4 000 000,00 Region 1 Concept and liability (blank) (blank)


(712611) Mabopane Block U R9 000 000,00 Region 1

Construction of 0.4km of stormwater (blank) (blank)

105


Electricity

(712688) Energy Efficiency and Demand Side Management R15 000 000,00 City Wide

EE awareness and Capacity building completed Not Started Delays in finalizing of posters

Group Property Management

(712743) Replacement/ Modernisation of elevators and escalators (City Wide) R4 000 000,00 City Wide CD WET X 1 (blank) (blank)


(712751) Capital Funded from Operating (City Planning & Development) R250 000,00

Administrative HQ

SCM committee processes for acquisition of Bulk filing cabinets an prioritised office equipment In Progress

Tender advertisement signed and resubmitted. Tender advertisement for Tender nr ED11 2019/2020 (Bulk Cabinet) placed 20 September 2019. Site meeting completed 26 September 2019. Tender advertisement in process, closing 9 October 2019

Health Services

(712756) Capital Funded from Operating R725 000,00 City Wide

SCM to evaluate bidders of the tender or quotations from the pane Completed

For Medical Printers: Medical Thermal printers ordered 3 September 2019 . Await delivery that will take 4-5 weeks.


(712760) Capital Moveables R500 000,00

Administrative HQ

Purchasing of furniture and equipment In Progress

QAR submitted to oCOO for approval thereafter to SCM


(712773) Capital Funded from Operating (Capital Moveables) R12 357 000,00 City Wide

Book selection process and needs analysis In Progress

Book selection in process. IT equipment and furniture need assessment in process.

Electricity (712862) Digital Valve Positioners R1 000 000,00 Region 2

Approved tender and placement of purchase order Not Started waiting for BAC

Electricity (712862) LED Digital Display R1 000 000,00 Region 2


Electricity (712862) Oil Burner Spares R1 000 000,00 Region 2 Placing of order for goods In Progress 3 months lead time

Electricity (712862) Oxygen Analysers R1 000 000,00 Region 2


106

Department Project Name Budget Region Planned Q1 Target Milestone Status Milestone Comment Economic Development and Spatial Planning

(712868) Ugrading of the market trading system R1 000 000,00 Region 3

Approve priorities and estimated costs by management Completed;Delayed

Wait for appointment of corporate tender;(blank)

Electricity

(712872) Network Control Centre Reconfiguration R15 000 000,00 Region 3

Supply Chain Process (BEC , BAC and Contract awarding) Not Started Tender specification on TAR stage


(712893) Upgrading of Road from gravel to tar in Zithobeni Ward 102 R10 000 000,00 Region 7 In Progress

Construction of 0,2km of roads, 0,6km kerbing and 1800 square meter sidewalks


(712894) Upgrading of Road from gravel to tar in Ekangala (Ward 103 and 104) R20 000 000,00 Region 7 In Progress;Not Started No work done due to strikes;(blank)


(712895) Upgrading of Road from gravel to tar in Ekangala Ward 105 R5 000 000,00 Region 7 In Progress no work done due community strikes


(712896) Water Conservation and Demand Management R62 938 610,00 City Wide

1800 Water meter installed &11400 meters replaced Delayed

201 Water meters done in September. The new Contractor is not yet appointed and delays are also encountered due to the community disrupting works.

Electricity

(712908) Electricity vending infrastructure R10 000 000,00 City Wide Creation of WBS In Progress WBS delayed due to electronic files


(712915) Upgrading of Caledonian Stadium (Inner City Park) R15 000 000,00 Region 3

Procurement of service provider Delayed

Tender closed in June 2019. SCM delay in adjudication process.


(712916) Upgrade Refilwe Stadium R18 000 000,00 Region 5

site establishment, boundary wall, stormwater, (blank) (blank)


(712944) Upgrading of roads and stormwater systems in Refilwe R1 500 000,00 Region 5

Procurement processes (consultant) In Progress


107



(712945) Upgrading of roads and stormwater systems in Rayton R1 500 000,00 Region 5

Procurement processes for the appointment of the consultant In Progress



(712946) Upgrading of roads and stormwater systems - Phase 1 R1 500 000,00 Region 5 Procurement Processes In Progress



(712950) Disaster Recovery System Storage R10 000 000,00 City Wide Appointment of Supplier Not Started Tender evaluation started

Tswhane Leadership and Management Academy

(712953B) Renovation of Facility R5 000 000,00

Administrative HQ

Complete renovation of ablution block west Delayed

Alterations were done to the building which differs from the plan.


(712953M) Obtain training equipment and tools R3 000 000,00

Administrative HQ

Goods sourcing: Finalisation of the bidding process: Appointment letter issued Delayed

The equipment can only be procured upon completion of the construction of the plumbing workshop.


(712970N) Nelmapius Ext 22 R15 000 000,00 Region 6

1100m of water network installed Not Started Milestone achieved.


(712977) Business Process Outsourcing (BPO) Park Construction R2 989 000,00 Region 2

Finalization of pending dispute/legal issues with the principal agent Delayed

The pending dispute with the principal agent was resolved and the project was reinstated. Remedial works to the structure to be done prior to the continuation of construction works. The contractor has completed 85% of remedial works.


(712983) Extension of Ga-Rankuwa Cemetery R3 000 000,00 Region 1

EIA AND MAYCO APPROVAL Not Started

The Department has submitted the identified site to Group property for approval by the MAYCO.

Electricity

(713009) Digital Trunked Radio Communication (New) R10 000 000,00 City Wide 50km2 In Progress Purchase order issued

Electricity (713010) Infrastructure Fault R10 000 000,00 Region 3

Installation and Programming of Software and equipment's (blank) (blank)

108

Department Project Name Budget Region Planned Q1 Target Milestone Status Milestone Comment Reporting and Dispatch (New)


(713023) Inner City Regeneration: Civic and Northern Gateway Precincts R22 775 250,00 Region 3

Construction of 0.200km of paving block walkways Completed;In Progress

1.2km of layer works complete. Segmented paving works is in progress which follows the completed base layer works as structured on the program of works. ;WBS created, Appointment in place, SAP commitment finalised


(713044) Tshwane North Cemetry R4 000 000,00 Region 1 Specifications Not Started Delayed.

Customer Relations Management

(713049) New Clinic Lusaka R23 436 000,00 Region 6

Supply Chain Management to start with the process of advertising the tender OR inviting quotations from the panel for the appointment a Contractor Delayed

Finalisation of Tender Advertising Request (TAR) is awaiting budget confirmation. Group Head wrote to Chief Financial Officer requesting intervention for outer years budget allocation. Land use rights process has been handed over to Group Property, following a meeting with Ms Nomsa Molako, as per new City arrangements

Emergency Services

(713052) Construction of Emergency Services Station Mamelodi 1 R44 500 000,00 City Wide

Payment of contractor for work done as per project milestones completed. In Progress

Site establishment by contractor was 12 August 2019. Two progress payments were done for August and September 2019

Group Financial Services

(713063) Turnaround of Municipal Water Service - Reduction of Water losses R80 000 000,00 Region 3 pre project planning In Progress;Not Started

Feasibility Study Report in progress. To be completed by end of October 2019;Pilot Project Schedule currently being revised by the PSP;(blank)


(713064) Capital Movables R200 000,00

Administrative HQ

Wbs creation and then sourcing of goods via written and verbal quotation Delayed

creation of wbs's was finalised on 22 Aug 2019. However the department is unable to create requisitions due to errors. ;The work breakdown structures were created and completed on time. The problem emerged when Group financial

109

Department Project Name Budget Region Planned Q1 Target Milestone Status Milestone Comment services did not link the project with the correct cost center therefore resulting in the department being unable to create purchase requisitions. Feedback on the problem was only received on the 30 September 2019



Administrative HQ

Request and finalise office equipment needs Completed

Needs finalised,WBS numbers created,purchase requisitions captured on E-procurement,awaiting proposals from service providers.;Purchase requisitions created on E-procurement and awaiting the creation of purchase orders.;(blank)

Emergency Services

(713081) Construction of a new Emergency Services Station in Klip Kruisfontein R2 000 000,00 Region 1

Bids to be tabled at BEC and BAC, Issue appointment letter Principal Agent to commence with stage 1 project initiation Not Started

Approval required by the Group Head Environment and Agriculture Management to utilize a portion of Erf 3323 Soshanguve South x1. Upon approval, this department will write a rezoning report to Council for approval. Principle Agent to be appointed after the above mentioned tasks has been completed which results in the project being delayed on non-financial mile-stone targets. The appointment of a PA to follow after permission was granted and the rezoning report was approved by Council.


(713082) Purchase of a new Emergency Services Incident Reporting System R5 500 000,00 Region 3

Assessment and scope definition, Development of the Blue print for Safe City and Project closed Not Started

The tender is at the evaluation process;The tender is at the evaluation process.

Emergency Services

(713083) Urban Regeneration of Wonderboom R5 000 000,00 Region 2

Submit bidding document to SCM to tabled at the BSC. Bid to be advertised, Not Started

Project behind schedule. Building plans submitted to be approved first before the bidding process can commence.;Tender document

110

Department Project Name Budget Region Planned Q1 Target Milestone Status Milestone Comment Emergency Services Station

evaluation by BEC and recommended by BAC.

completed. The Emergency Services in process of obtaining Building plan approval. Tender document was completed and will be ready to commence with the procurement process as soon as the approved plan is received.


(713086) Plan Printing Equipment R300 000,00

Administrative HQ

Bid Specification Committee:BSC and Adverticement

Completed;In Progress;Not Started

BEC, BAC completed, Appointment letter received 30 September 2019, in process with SLA drafting;SAL to be drafted and signed before purchase order can be generated;(blank)


(713087) Surveying Equipment: New Technology replacement (Terrestrial Scanners UAV-Drone & Surveying GPS Receivers - Trimble Units) R3 550 250,00 Region 3

Bid documentation:E-Procurement TAR Loading, workflow, SCM Committee Not Started

Tender advertisement request signed, specifciaiton drafted. BSC committee completed. Await advertisement;(blank)


(713091) Upgrade of existing Studios located at Premos R4 000 000,00 Region 3 Appointment of Tender Delayed BAC referred the tender back to BSC


(713092) Installation/Replacement of Aircon Systems R500 000,00 City Wide

SAMMY MARKS X 2 LIFTS AND AKASIA TOWNHALL X 1 Completed;(blank) (blank)


(713094) Upgrade Halala Community Centre R500 000,00 Region 1

Appoint civil engineer, assessment of upgrading work, compile tender documentation Not Started

Assessment of upgrading works by internal architect.

Electricity

(714008) Replacement of obsolete of meter test bench ( Electricity Distribution Loss) R50 000 000,00 Region 1 creation of WBS Not Started

Clarity on the breakdown of the funds required;Clarity required for the breskdown of funds

111


Communications and Marketing


Administrative HQ

Quotations and procurement processes In Progress;Not Started

Purchase order generated;Request for quotes sent out to potential service providers.;(blank)

Emergency Services

(714024) Technical upgrade of the Emergency Operational Centre Phase 2 R1 000 000,00 Region 4

Bidding document to be tabled at the BSC and advertisement of bid. Evaluation of bids and recommendation by the BAC. Completed

Conference room upgrade: Board quote QAR was submitted to SCM 16 July 2019 for advertisement. Quote specification meeting took place on 5 August 2019. Bids were evaluation on 28 August 2019. Approved report was received 20 September 2019 from SCM to link on the E-Procurement system.;Milestone completed;Milestone completed ;Public invitation completed

Emergency Services

(714025) Alterations to the Airport Emergency Services Station R800 000,00 Region 2

Completion of concept designs, detailed designs, completion of bidding documents and submission of bids to SCM Not Started

Contract HHS01 2018/19 was awarded by the BAC on 18 July 2019. Appointment letters were received on 4 September 2019. The Emergency Services drafted a letter to be submitted to Supply Chain Management to commence with the process.


(714036) SAP 4 Hanna R55 000 000,00

Administrative HQ (blank) (blank)

ICT, Applications & Infrastructure (714036) SCOA R15 000 000,00

Administrative HQ (blank) (blank)

Shared Services (714040) Purchase of Waste Trucks R70 000 000,00

Administrative HQ

Purchasing of Waste trucks Not Started

Needs analysis is underway to determine the requirements


(714041) Tshwane House - EPMU offices R15 000 000,00

Administrative HQ

Planning and request quotations for the Epmu offices In Progress

Project plans and designs developed and awaiting approval by the City Strategy and Organisational Performance and Shared Services Departments.;Project plans and designs developed and awaiting approval by the City Strategy and Organisational Performance and Shared Services Departments.

112



(714042) Fencing of Facilities R10 000 000,00 City Wide

Planning of fencing needs and survey. Compile bill of quantities, appoint service provider In Progress

Contractor appointed to install fencing at Pta Art Museum.

Social Development

(714043) Renovation/Upgrading of No.2 Struben Shelter R5 000 000,00 Region 3

Assessment of works, compile bill of quantities, procure service provider. Not Started

Assessment by internal architect done.

Metro Police Services

Sub Project - Policing Equipment (New Recruits) Security R27 067 879,00 City Wide

ICT Equipment: Desktop PC x 32 + Laptop x 17 & Projectors x 7 & Cameras Digital SLR x 7 Delayed;Not Started

Await quotations from service providers in respect to Tetra Communication Equipment & ICT equipment. ;Awaiting approval of TMPD 07-2018/19 (Supply and delivery of various types of firearms)

2.PROJECTS NOT REPORTED MILESTONES FOR QUARTER 1

Department Project Name Budget Region Planned Q1 Target Milestone Status Planned Milestone Comment


Bronkhorstspruit and Rietvlei Water Purification Plant Refurbishment R 6 000 000,00 Region 6

Appointment of a Consultant, Design stage n/a n/a


(710115) Contributions: Services For Township Development R 21 581 650,00 Region 4

Land, new roads and new stormwater n/a n/a

113


Electricity

(710163) Refurbishment of Sub Transmission Electrical Infrastructure R 11 813 721,00 City Wide n/a n/a

Electricity

(710176) Dangerous and obsolete switchgear R 10 000 000,00 City Wide

Full implementation of all projects on site. Manage the contractor and material. Assist with switching requirements. Complete 4 projects for Q1 n/a n/a

Electricity (710178) Electricity for All - Region 1 R 34 922 250,00 Region 1

Construction backbone network infrastructure with 200 connections. n/a n/a


Construction of infrastructure backbone network with 0 connections. n/a n/a


Construction of backbone infrastructure network realising 0 connections. n/a n/a


Construction of backbone infrastructure network with 200 connections. n/a n/a


Construction of network backbone infrastructure with 200 connections. n/a n/a


Construction of infrastructure backbone network with 200 connections. n/a n/a


(710411C) Klipgat WWTW: Refurbishment and Upgrading of existing infrastrature R 29 200 000,00 Region 1

Prelimenary design report and appointment of security service provider n/a n/a

114



(710411F) Baviaanspoort WWTW 40 Ml/d Extension R 40 000 000,00 Region 6

Rectify the supporting embankment of the fencing alongside Module 2 n/a n/a


(710411Y) Upgrading of Water Pump Station (City Wide) R 800 000,00 City Wide n/a n/a

Electricity

(710480) Strengthening 11kV Cable network R 23 000 000,00 City Wide

To deliver a total of 2km of new cable upgrades in Q1 n/a n/a

Electricity

(710481) Strengthening 11kV Overhead Network R 10 000 000,00 City Wide

To achieve a total of 1km overhead network upgrades for Q1 n/a n/a

Electricity (710484) Secondary Substations R 10 000 000,00 City Wide

Place orders for equipment n/a n/a

Electricity

(710556) USDG Funds: Region 1 (Public Lighting) R 26 500 000,00 Region 1

100 Streetlights and 2 Highmast Lights n/a n/a

Electricity


0 Streetlights and 0 Highmast Lights n/a n/a

Electricity


100 Streetlights and 0 Highmast Light n/a n/a

Electricity


Construction of the electricity backbone infrastructure , 100 Streetlights and 0 High,mast Lights n/a n/a

Electricity


Construction of the electricity backbone infrastructure, 0 Streetlights and 0 Highmast Lights n/a n/a

Electricity


Construction of the electricity backbone infrastructure, 0 n/a n/a

115

Department Project Name Budget Region Planned Q1 Target Milestone Status Planned Milestone Comment Streetlights and 0 Highmast Lights

Electricity


Construction of the electricity backbone infrastructure, 0 Streetlights and 0 Highmast Lights n/a n/a


(710863) Bulk water pipeline - Booysens X4 R 35 000 000,00 Region 3

Excavations, bedding, pipe laying and back filling n/a n/a


(710863) Booysens X4 (30ML Reservoir) R 47 100 000,00 Region 3

Reinforcing, formwork and concrete to columns and walls Concrete works n/a n/a


(710863) Bulk water line - Soshanguve South X24 R 5 000 000,00 Region 1 n/a n/a


(710863) Water provision - Kopanong X1 Phase 2 R 10 000 000,00 Region 1

Procurement of design engineer and design development n/a n/a


(710863) Water provision - Olievenhoutbosch x36 - Bulk water line R 20 000 000,00 Region 4

Procurement process for consulting engineer and contractor n/a n/a


(710863) Water provision - Olievenhoutbosch X60 R 11 000 000,00 Region 4

Procurement of a consulting engineer and contractor inclusive of design reviews n/a n/a


(710863) Water provision - Refilwe ext 10 (200 stands) R 10 000 000,00 Region 5



(710863) Water provision - Refilwe X7 - Water Reticulation R 10 000 000,00 Region 5

Procurement process for consulting engineer for design development n/a n/a


(710863) Water provision- Mabopane X12 R 15 000 000,00 Region 1

Procurement process for consulting engineeer for design development n/a n/a

116

Department Project Name Budget Region Planned Q1 Target Milestone Status Planned Milestone Comment Housing and Human Settlement

(710863) Water reticulation - Booysens X4 R 12 000 000,00 Region 3

Excavation,bedding, pipe laying and backfilling n/a n/a


(710863) Water reticulation - Pienaarspoort R 19 000 000,00 Region 5



(710864) Bulk Sewer -Booysens X4 R 20 000 000,00 Region 3

Excavations, bedding and pipe laying n/a n/a


(710864) Sewer reticulation - Refilwe X7 R 12 000 000,00 Region 5 n/a n/a


(710864) Sewer provision - Zithobeni X8 R 20 000 000,00 Region 7

Excavation and foundation n/a n/a


(710864) Sewer provision - Kopanong X1 Phase 2 R 15 000 000,00 Region 1

Procurement of design engineer and design development n/a n/a


(710864) Sewer provision - Kudube unit 9 R 15 000 000,00 Region 2



(710864) Sewer provision - Mabopane X12 R 18 000 000,00 Region 1

Appointment of Consultants n/a n/a


(710864) Sewer provision - Nellmapius X22 -stand 12224 & 12225 R 17 000 000,00 Region 6

Procurement process for consulting engineer for design development n/a n/a


(710864) Sewer reticulation - Pienaarspoort R 38 000 000,00 Region 5



(710864) Sewer reticulation - Soshanguve MM (80 Stands) R 2 100 000,00 Region 2



(710864) Sewer reticulation - Winterveldt R 15 000 000,00 Region 1

Excavation,bedding, pipe laying and backfilling n/a n/a

117



(710865) Construction of roads & stormwater - Mabopane X1 R 70 000 000,00 Region 1

Excavations, bedding and laying of stormwater pipes n/a n/a


(710865) Construction of roads & stormwater - Olievenhoutbosch X60 R 30 000 000,00 Region 4

Procurement of consulting engineers and contractor n/a n/a


(710865) Construction of roads & stormwater - Zithobeni X8&9 R 60 000 000,00 Region 7

Excavations, bedding, laying of stormwater pipes n/a n/a


(710868) Acquisition of Land for the Upgrading of Informal Settlements R - Region 7 n/a n/a


(710878) Ekangala Block A - F sewer reticulation and toilets R 20 000 000,00 Region 7

Review of designs, approval of justification memo, request of quotations and appointment of contractor. n/a n/a


(710878) Ramotse-Marokolong waterborne sanitation R 5 000 000,00 Region 2

Procurement process for Township Planners n/a n/a


(711262) Magriet Monamodi Stormwater System R 3 000 000,00 Region 2

Appointment of consultant and review of designs n/a n/a


(711335) Cathodic protection to all Steel pipes (City wide) R 6 000 000,00 City Wide

Procurement process and tender award n/a n/a


(711921) Bronkhorstbaai: Refurbishment and upgrade of Water Purification Plant R 11 000 000,00 Region 7

BSC, Tender advertising, Tender closing and Evaluation n/a n/a

118


Airport Services

(711953) Separation: Airside/Landside: Required legislative compliance with Civil Aviation Regulations, and the National Aviation Security Program (NASP) R 1 000 000,00 Region 2

Procurement processes: Quotations n/a n/a

Electricity

(712006 ) Replacement of Obsolete And non functional Equipment R 8 000 000,00 City Wide

Delivery and installation planning n/a n/a

Electricity

(712279 ) Bronkhorstspruit 132/11kv substation R 25 000 000,00 Region 7

Construct new substation building to roofing level. Complete paving n/a n/a

Electricity (712279) Iffafi 88/11kV Substation R 5 000 000,00 No Intersect

Prepare tender specifications, drawings and tender documentation n/a n/a

Electricity (712279) Monavoni 132/11KV Substation R 20 000 000,00 Region 4

Complete the construction of outdoor yard equipment and installation of steel support structures n/a n/a

Electricity

(712279) Refurbishment of Kentron 132/11kV Substation R 20 000 000,00 Region 4 Receive tenders n/a n/a

Electricity (712279) Soshanguve - JJ 132KV Power Line R 15 000 000,00 Region 1

Award the tender and issue the appointment letter n/a n/a

Electricity (712279) Soshanguve 132/11KV Substation R 15 000 000,00 Region 2

Tender USD EE 12-2017/18 evaluated, discrepancy on the tender description and wording of the recommendation/resoluti n/a n/a

119

Department Project Name Budget Region Planned Q1 Target Milestone Status Planned Milestone Comment on. BAC report send back to SCM for corrects. No appointment letter.

Electricity

(712279) Wildebees 400/132KV Infeed Station (Eskom Connection Charge - Opex Funded from Capex) R 5 000 000,00 Region 6 n/a n/a

Electricity

(712279) Wildebees 400/132kV, 315MVA Infeed station R 15 000 000,00 Region 6

Expropriate and process payment for the land for the Wildebees Infeed Station n/a n/a


(712368) Centurion CBD Transport Facilities R 10 000 000,00 Region 4 n/a n/a


(712444) Buildings & Equipment (security at the stores) R 20 762 350,00

Administrative HQ site establishment n/a n/a

Electricity (712483 ) New Connections R 25 000 000,00 City Wide

To provide 350 new connections for Q1 n/a n/a


(712506) Flooding backlog: Network 5A, Matenteng R 4 000 000,00 Region 2 Review of Design n/a n/a


(712515) Flooding backlog: Network 2B, Ramotse R 4 000 000,00 Region 2

Appointment of design consultant n/a n/a


(712520) Flooding backlog: Ramotse (Network 1A, 1C & 1F) R 4 000 000,00 Region 2

Appointment of design consultants n/a n/a


(712533) (VPUU) Construction of Skills Centre Mamelodi East R 10 000 000,00 Region 6 n/a n/a


(712533) Tsosoloso Programme - R 4 500 000,00 Region 6 n/a n/a

120

Department Project Name Budget Region Planned Q1 Target Milestone Status Planned Milestone Comment Mamelodi West walkways


(712534) Installation of telemetry, bulk meters and control equipment at reservoirs (City Wide) R 10 000 000,00 City Wide

Installation of pressure transmitters and ordering of Vandal Proof Solar Panels n/a n/a


(712534) New Parkmore LL Reservoir and HL Rerservoir R 20 000 000,00 Region 6

Appointment of contractor and Site Establishment n/a n/a


(712534) Replace reservoir fencing (City Wide) R 8 000 000,00 City Wide

Identification of sites and development of specification n/a n/a


(712534U) Grootfontein Water Reservoir, tower and pipework R 5 000 000,00 Region 6

Tender document and tender drawings review n/a n/a


(712591) Construction of Line 1A: CBD to Rainbow Junction Section 1A-4B (Rainbow Junction Bypass road) R 50 750 000,00 Region 1 n/a n/a


(712591) Denneboom Intermodal facility R 5 000 000,00 Region 6

Appointment of the successful bidder n/a n/a

Tshwane Bus Services

(712591) Extra buses for normal operation R 40 000 000,00 City Wide n/a n/a


(712591) Menlyn Pedestrian Overpass R 2 000 000,00 Region 6 n/a n/a


(712591) RJ to Akasia - Complementary R 17 500 000,00 Region 1 n/a n/a


(712591)Urban traffic control (UTC) system - A Re yeng R 20 000 000,00 City Wide n/a n/a

121

Department Project Name Budget Region Planned Q1 Target Milestone Status Planned Milestone Comment communication backbone and traffic signals

Electricity (712601) Standby Quarters (Revival) R 15 000 000,00 Region 1

Technical Adjudication of the Tender n/a n/a


(712611) Upgrading of Mabopane Roads (red soils) R 4 000 000,00 Region 1 n/a n/a


(712612) Upgrading of Sibande Street, Mamelodi R 3 000 000,00 Region 6 n/a n/a


(712736) Fencing off Spruit Areas City Wide (Ecological Sensitive & Security Purposes) R 2 000 000,00 Region 3 Pre planning n/a n/a


(712750) Capital Movables R 500 000,00

Administrative HQ

Project Plan, Detailed Brief, Develop specifications n/a n/a


(712755) Capital movables R 500 000,00

Administrative HQ supply chain process n/a n/a

Electricity

(712861) Replacement of Obsolete Testing Equipments and Instruments. R 15 000 000,00

Administrative HQ n/a n/a

Electricity (712862) Service Tank R 2 000 000,00 Region 2 n/a n/a

Electricity (712862) Turbine Rotors R 1 000 000,00 Region 2

Project will not take place in 2019/20, funds will be reallocated to another project n/a n/a


(712902) Bronkhorstspruit Informal Traders Market R 2 000 000,00 Region 7

Appointment of service provider n/a n/a


(712920) Rainbow Junction and R 3 000 000,00 Region 2 Concept and liability n/a n/a

122

Department Project Name Budget Region Planned Q1 Target Milestone Status Planned Milestone Comment Rehabilitation of the Apies River


(712923) Capital Funded from Operating R 150 000,00

Administrative HQ

Procurement,delivery and installation of office furniture and equipment n/a n/a

Group Legal & Secretariat Services

(712924) Capital Moveables R 300 000,00

Administrative HQ

Finalizing the requirements and request quotations n/a n/a

Regional Operations & Coordination (ROC)

(712926) Capital Moveables R 1 200 000,00 City Wide

Prioritizing according to available funds and Creating WBS numbers n/a n/a


(712947) Improvement of dirt road leading to Clover hill club, Bronkhorstspruit dam R 3 000 000,00 Region 7

Appointment of design consultant n/a n/a


(712970) Project Tirane R 50 000 000,00



(712971) Cullinan Marketing and Trading Stalls R 2 000 000,00 Region 5

Procurement of a building contractor n/a n/a


(712988) Informal Trade Market(Inner City) R 5 000 000,00 Region 3

Procurement of a building contractor n/a n/a


(713006) Automated Fare Collection (AFC - TBS) R 15 000 000,00 City Wide

Complete installation of AFC Kiosk selling point equipment in Olievenhoutbosch n/a n/a


(713024) Upgrading of Resorts and reserves of security infrastructure R 9 000 000,00 City Wide

Project Plan, Detailed brief, develop specifications n/a n/a


(713040) Furniture and equipment for overnight R 250 000,00 Region 6

Project Plan, Detailed brief, Develop Specifications n/a n/a

123

Department Project Name Budget Region Planned Q1 Target Milestone Status Planned Milestone Comment accommodation at Resorts

Waste Management Services

(713043) Development of waste transfer stations R 9 250 000,00 Region 7

Environmental Impact approval report n/a n/a


(713045) Provision of waste containers R 20 500 000,00 City Wide

This is an application driven project. We supply according to the need of that particular period and the location requesting the containers. Approximately 6000 of 240L waste containers in a quater. n/a n/a


(713046) Upgrade of access control at waste disposal sites R 7 000 000,00 Region 7

Appointment of contractors f n/a n/a


(713084) Lalela Monument R 7 500 000,00 Region 3

Procurement of Building Contractor n/a n/a


(713085) Marabastaad Informal Traders Formalisation R 5 000 000,00 Region 3 n/a n/a


(713089) Rehabilitation of wetlands R 3 000 000,00 Region 4

Tender documentation and approval n/a n/a


(713098) Tshwane Bus Service Building Refurbishment R 3 000 000,00 City Wide

Tender Specification and TAR submitted for approval n/a n/a


(714000) Bus Depot at Ekangala R 15 000 000,00 Region 7 Perform feasibility study n/a n/a

Airport Services

(714003) Provision of noise measuring and reporting equipment to meet legislative requirements R 50 000,00 Region 2

Procurement processes: Quotations n/a n/a

124


Airport Services

(714004) Shotgun for bird and stray animal control (12 bore) R 5 000,00 Region 2 Sourcing quotations n/a n/a

Licensing

(714022) Upgrading of Rayton Licensing Offices R 500 000,00 Region 5 Paving of parking area n/a n/a


(714027) Non-technical electricity losses R 10 000 000,00 City Wide

creation of wbs on a tender in place n/a n/a

Regional Operations & Coordination (ROC) (714039) Bon Accord R 50 000 000,00 Region 2

Planning and SCM Processes n/a n/a

Electricity (9172279) Roslyn Switching Station R - Region 1 n/a n/a


151_00_(712953) Tshwane Leadership and Management Academy (City Wide) R 2 000 000,00 City Wide n/a n/a


886_00_(712221) Flooding Backlogs: Mabopane Area R 20 000 000,00 Region 1 n/a n/a

Group Financial Services Centralised Stores R 3 000 000,00



Development of Parks and Traffic Islands R 2 000 000,00 City Wide

Project Plan, Detailed brief, Develop specifications n/a n/a


Refurbishment of the Magaliesberg Reservoirs R 3 743 679,00 Not Mapped n/a n/a


Upgrade of various Swimming Pools R 1 000 000,00 City Wide

sourcing qoutations on existing tennder and creation PR and PO n/a n/a

125

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