Monthly Archives: June 2011


27.7% electricity hike for Joburg

Johannesburg residents feel they are bearing the brunt of the metro’s inability to collect rates – by being charged exorbitantly for municipal services.

From tomorrow, residents will pay 27.7% more for electricity and 14% more for water. Rates and refuse collection costs will go up by 6.7%.

Johannesburg mayor Parks Tau announced the charges when he tabled a R33bn budget yesterday.

Lee Cahill, a founder of the Joburg Advocacy Group, which works with ratepayers associations in Johannesburg, said she was concerned at the “huge hike in electricity”.

“According to the Northern Federation of Ratepayers, the Provincial Gazette of March 2, 2011 records a revenue collection rate of 56.5% for the City of Johannesburg.

“This huge drop in collection rates has happened since the implementation of Project Phakama, which means the city’s billing crisis is directly affecting its ability to collect revenue.”

The increase is far above the inflation rate of 4.6%.

“Failures in one part of the local government system inevitably have a knock-on impact throughout the system – something that is seldom acknowledged,” Cahill said.

“Not only will this increase have a huge impact on consumers, it will have a direct impact on the country’s inflation targeting, creating a vicious cycle of increases.”

A resident of Northcliff who asked not to be named, said that since she and her husband bought their house at the beginning of last year the municipality had sent them three accounts for their single property.

She said that, for a year, the city had not been able to close two of the accounts but instead, had sent her bills “out of the blue”.

She said city officials have forced her to pay more than R20000 on the three accounts since May last year.

Reacting to news that she will be charged more on her bills, she said: “I don’t understand what it is I am paying for. I don’t see the benefit of paying for my services.”

Cheryl Labuschagne, chairman of the Parkhurst Village Residents’ Association, said “Any increase above the inflation level is a burden.

“I had a look at my own municipal bill for June. Electricity costs constitute almost half of the total bill; water and sanitation about 12.5%.”

She said that, with road tolls, medical-aid scheme contributions and petrol price hikes, her personal-services bill will go up by 30%.

Credit to: Times Live

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Cape Town, Tshwane top municipalities

Cape Town and Tshwane are the country’s two metropolitan municipalities to show improvements in financial management over the previous financial year, Auditor General Terence Nombembe’s report on municipalities reveals.

The Consolidated General Report on the Local Government Audit Outcomes, released in Pretoria on Wednesday, showed that Cape Town was the only metro to obtain a clean audit, while Nelson Mandela Bay, Ekurhurleni, Tshwane and eThekwini all obtained audit reports that were financially unqualified, but with findings.

Cape Town received an unqualified audit report with findings in 2008/09, while Tshwane received a qualified audit report that year.

The Johannesburg metro had not finalised its audit report by January 31 2011.

The findings against most of the metros related to non-compliance with regulatory requirements or unreliable information.

The country’s two newest metros – Buffalo City (East London) and Mangaung (Bloemfontein) – did not fare as well as the more established metros.

Buffalo City deteriorated from having a qualified audited report in 2008/09 to a disclaimer in 2009/10.

The AG highlighted problems with the city’s capital assets, current assets and unauthorised, irregular or wasteful spending.

Mangaung obtained a disclaimer as it had in the previous financial year.

A disclaimer is issued when the auditor could not form an opinion on the financial statements.

This could happen where the entity being audited concealed or failed to provide relevant information, if it was involved in litigation, or if its status as a going concern was threatened.

And in the graph in the AG’s report, there was an almost solid line of red for all the concerns he had, from revenue and expenditure to unauthorised or irregular expenditure.

Only seven municipalities out of the country’s 237 received a clean audit for the 2009/10 financial year.

Credit to: Sapa and News 24

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Fearless Kader Asmal hailed

Kader Asmal was a fearless fighter for freedom and human rights and his death has weakened South Africa’s democracy, political parties and civil organisations said on Wednesday after the ANC veteran’s death in Cape Town.

President Jacob Zuma said Asmal made a “sterling” contribution to the struggle for liberation and sacrificed a lot in his life to ensure the attainment of freedom and democracy.

“He will be remembered for his energy, forthrightness, efficiency and commitment to making this country a better place each day. He will also always be remembered for his passion for human rights for all.”

Asmal, 76, died on Wednesday in Constantiaberg hospital in Cape Town. He was the minister of water affairs and forestry from 1994, a member of the ANC’s national executive committee, and education minister from 1999.

Publicly rebuked

Asmal, although an ANC stalwart, never hesitated to criticise when he believed government was wrong.

He was occasionally publicly rebuked by the ANC after raising concerns about party stances he feared threatened democracy.

ID leader and Cape Town Mayor Patricia de Lille said Asmal had fought for democracy up until the last week of his life.

“Up until the last week of his life, he had been fighting for the rights of South Africans.”

Just  last week he voiced his strong opposition to the protection of information bill, urging all South Africans to reject the bill and warned the ANC that rushing it through parliament would destroy trust in the democratic process.

He said he had hoped the weight of public opposition to the so-called “secrecy bill” would by now have persuaded the relevant ministers and MPs “to take this appalling measure back to the drawing board”.

“Since this has not happened, my conscience will not let my silence be misunderstood. I ask all South Africans to join me in rejecting this measure in its entirety,” he said.

Worse than a farce

In 2009, Asmal described then deputy police minister Fikile Mbalula’s idea of militarising the police service as “craziness” and smacking of “low-level political decision-making”.

“The new administration is referring to the militarisation of the police,” he told the Cape Town Press Club.

“I have this former head of the youth league [Mbalula] who aspires to be secretary general of the ANC. Ha, really, I hope I won’t be alive.

“He said we must militarise the police. We spent days and days in 1991 to get away from the idea of a militarised police force. Extraordinary.

“This is a kind of craziness all of us have to take into account. It is part of that low-level political decision-making without reference to the Cabinet,” he said.

ANCYL leader Julius Malema, “tenderpreneurs”, and the National Youth Development Agency have also been the target of his criticism, with the NYDA being described as worse than a farce.

Intellectual giant

His criticism of government, however, did not deter the ANC from declaring him one of the party’s foremost intellectual giants upon news of his passing.

Spokesperson Jackson Mthembu said Asmal’s “immeasurable contribution in the liberation of South Africa” ensured that the ANC earned respect from the international community.

Tributes have also poured in from all elements of the political sphere, including opposition parties.

DA leader Helen Zille said Asmal represented the best of a generation of struggle heroes.
“Asmal was far more than a politician. He represented the best of a generation of struggle heroes who made unimaginable sacrifices to realise a democratic South Africa.”

Architect of democracy

Former president Thabo Mbeki called Asmal an outstanding fighter for the liberation of South Africa and one of the architects of democracy.

“All of us who knew and worked with him…could always depend on him as a steadfast fighter for the liberation and advancement of the interests of all South Africans,” he said.

IFP leader Mangosuthu Buthelezi described Asmal’s death as weakening democracy in South Africa.

“With his death the Republic has lost one of the most vigilant custodians of our freedom and constitutional order, who never feared to speak up on matters of principle,” he said.

“One of the greatest independent thinking and outspoken minds has left us.”

Robust debates

The SA Communist Party said Asmal loved robust debates and was always in search of new ideas.

“Although we did not always agree with his ideas as the SACP, we respected his intellectual contribution in the task of reconstructing and developing our country,” spokesperson Malesela Maleka said.

Cope co-founder Mbhazima Shilowa was shocked and saddened by Asmal’s death and described him as an icon and a legend.

“Asmal was one of the very few icons and legends who still upheld the founding values and principles of the democratic movement and the liberation struggle.”

Good company

Archbishop Desmond Tutu paid tribute to how Asmal selflessly served the country.

“He served his people and his nation, without a thought of self-enrichment or aggrandisement,” he said.

“He added substance and vigour to whatever he did, from the international anti-apartheid movement, to the negotiations that gave birth to our democratic nation, and later, our Constitution; and from the cabinets in which he served under presidents Mandela and Mbeki, to the generations of academics and students he inspired, from Trinity College in Ireland to the University of the Western Cape.”

Tutu sent his condolences to Asmal’s family saying “if it is any consolation to them in this time of grief, one of the first people Kader will bump into in heaven is Albertina Sisulu. He is in good company”.

Credit to: News 24

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No water, electricity at schools

While the country is fighting an uphill battle to improve basic education, more than 3500 public schools in the country have no electricity, while 2402 have no water supply.

This is according to a school infrastructure report published in May by the Department of Basic Education.

Of the country’s 24793 public schools, 913 have no toilets.

These figures refer to schools that never had these facilities at all, as well as schools where infrastructure was destroyed or not properly maintained.

In KwaZulu-Natal, which – along with the Eastern Cape and the Free State – is one of the worst-off provinces for school infrastructure, 150 students are crammed into one classroom in a school in President Jacob Zuma’s home town, Nkandla.

The Shoba High School in Hlobane in northern KwaZulu-Natal was forced to shut its doors because of a low admission rate due to poor facilities.

Parents said their children did not want to go to a school that was just “one room in the middle of a bush”.

Spokesman for the Department of Basic Education Granville Whittle said the infrastructure backlog will be addressed through the department’s Accelerated Schools Infrastructure Delivery Initiative.

The initiative aims to eradicate the 395 mud schools in the country, which are all in the Eastern Cape, and provide all schools with water, electricity and sanitation by 2014.

The National Treasury has allocated R700m to the department for the 2011/2012 financial year to fund the initiative, said Whittle.

A total of 160 schools in KwaZulu-Natal have no toilets, while 26.6% and 10.6% of its 5931 schools don’t have electricity and water respectively.

In the Eastern Cape 551 of its 5676 schools don’t have toilets, 1152 have no electricity and 1096 have no water.

Credit to: Times Live

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Mayor gives up salary for poor, potholes

Municipal mayors across the country can learn a thing or two from the newly-elected mayor of the uMvoti Municipality in Greytown.

Mayor Philani Godfrey Mavundla has done it again – donating his entire salary of around R700 000 and other perks – towards poverty alleviation projects and for the repair of potholes in the streets of this rural town.

Speaker for the uMvoti municipality Ahmed Sheik confirmed in an interview with The Witness that mayor Mavundla made the announcement to have his salary re-directed towards poverty alleviation projects for the area during the second sitting of the council last week.

Shortly after his election to the position, Mavundla announced that he was not going to require the R600 000 car allowance or the state-of-the-art R450 000 mayoral Land Rover, but will use his own vehicles at his own expense.

Mavundla, who is a well-known businessman in the area, said his plan for the municipality is to run it as a business and has already asked forensic investigations to be carried out against the previous administration.

uMvoti was one of the 19 KZN municipalities that were never won outright by any political party during the elections and had to be co-governed by the ANC and the NFP.

During the first sitting the council decided that the speaker, the mayor and the deputy mayor were going to be full-time councillors, a decision that was criticised by the IFP.

Sheik said it was “encouraging and inspiring” to work with a person of Mavundla’s calibre, who put the interest of the downtrodden people ahead of his own and said he was looking forward to the fruitful five years for the people of uMvoti.

Credit to: News 24 and The Witness

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Power cut-offs loom for Joburg residents

Johannesburg residents face a new threat of electricity cut-offs, for nonpayment of outstanding bills.

This means a moratorium on cut-offs imposed by the city council in March — to allow ratepayers to sort out inaccurate bills issued in the recent billing crisis — has been lifted.

Revenue spokesman Stan Maphologela said yesterday the city was “stepping up its credit control in order to collect outstanding debt”.

“The campaign began on May 1, with the sending of pre-termination notices to all defaulters, mainly companies, corporates, and state departments,” Maphologela said. “The second phase will be undertaken with domestic customers.

“The pre-termination notices were sent since last week. We will continue to cover all defaulters, and the intensity of the campaign will be felt towards the end of next week and month-end,” he said.

“Customers who have applied and qualified for discounts as well as customers who have logged queries, received reference numbers and ensured that the account is flagged, will be excluded from the credit control campaign.”

He said that to date 65000 billing queries had been received, 52000 of which were resolved.

Lee Cahill of the civil rights organisation, Johannesburg Advocacy Group, said the city’s claims of its account resolution rate could not be accurate. “On January 26 the former mayor, Amos Masondo, said there were 80000 inaccurate bills.

“The city later claimed there were ‘only’ 65000 incorrect bills. If we accept all of these figures are accurate, this equates to a resolution rate of about 1000 complaints every working day from January 26 to April 14. By way of comparison, the new National Consumer Commission announced last week it had managed to resolve 60 complaints since it opened on April 1. This is an average of 1.3 disputes a day. ”

Credit to: Business Day

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Municipality spent R2bn on dodgy deals

One of the country’s worst-run municipalities went on a R2bn spending spree, which has been exposed in a series of explosive reports.

Free State premier Ace Magashule knew about suspicious dealings at the Matjhabeng municipality as far back as 2009 – but no action has been taken against any of the implicated officials.

The municipality, which incorporates Welkom, Odendaalsrus, Virginia, Henneman, Allenridge and Ventersburg, spent R1.6bn of its R1.7bn budget on “unaccounted expenditure” and property, according to the latest auditor-general’s report.

In addition, the municipality, according to the AG, wrote off bad debts totalling R1bn in the past four years. The R1.6bn includes R876.3m on property, R258.5m through unaccounted expenditure, R227.8m in debts incorrectly written off and R230.3m on “unauthorised, fruitless and wasteful expenditure”.

Several reports by a forensic company, as well as a commission of inquiry headed by the then co-operative governance MEC Mosebenzi Zwane, show how Matjhabeng – which, according to its website has a population of “more than 500000″ – got itself into such a mess.

They show that, on one occasion, officials tried to destroy documents stashed in wheelie bins, while investigations were under way. Some of the reports are over a year old.

Magashule this week admitted that there were “problems” at Matjhabeng that were reported to him as far back as 2009. However, he said he was never made aware of the full extent. “I didn’t know about these details and these billions.”

One of the men implicated in ripping off public funds is Jaqui Gao. Magashule said he had stopped Gao’s company, Rui Star, from doing business in Matjhabeng because of suspected corruption involving Matjhabeng’s former municipal manager, the late Thabo Pietersen.

The company had up to that point received at least R20m in tenders. “We picked up about Rui Star supplying substandard bricks and supplying (bricks) for Pietersen’s house (in Bloemfontein),” he said.

The reports also detail that:
•    R200000 was paid into the account of ex-mayor Mathabo Leeto’s husband, Lehana, by photocopy company Gestetner after it was awarded an “irregular” R15m tender;
•    R1.5m was approved for renovations to the mayoral house, deemed to be “personal enrichment”; and
•    Former municipal manager Dr Ben Malakoane signed questionable tenders worth R80m – 10 of them in one day, shortly before he resigned to join a company that benefited.

The Zwane report found Malakoane “grossly negligent” and “undermining the rule of law” for signing contracts “without following due process”. The report recommended a “dedicated forensic investigation” into his role in the sale of council land to Pinnacle Point for a R500m shopping mall.

Magashule admitted he was close to Pietersen and Malakoane saying: “They are my comrades.”

Leeto is mayor of the Lejweleputswa district municipality in northwest Free State and has widely been tipped to be promoted by Magashule to an MEC.

Asked if she’d repay the costs of her home renovations, Leeto said “there was neither determination made nor any finding that there was an irregularity on my part”.

Her husband Lehana confirmed that the R200000 was indeed deposited into his bank account but couldn’t explain how. He was unable to prove, as he claimed, that the money had been returned.

Said Magashule: “I think it’s completely unfair if you want to blame me for all of this. I can’t protect anyone. I’m not that powerful.”

Matjhabeng spokesman Modise Mahlatsane said the council was still waiting for the final report from investigating firm Ramathe Fivaz and had never seen Zwane’s report.

Mahlatsane said the council was implementing an “action plan” to deal with the auditor-general’s “queries and recommendations”.

Gao denied any wrongdoing. “People are jealous. I know Pietersen because I used to go to his office to demand (outstanding payments).”

Credit to: Times Live

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New Durban mayor declares war against corruption

Durban’s new mayor on Monday “declared war” against corrupt councillors and officials.

“I declare war against fraud, corruption and maladministration and we will take action against councillors and officials who are found to be doing business with the municipality,” James Nxumalo said at the Durban City Hall on Monday afternoon, after being sworn in as the municipality’s new mayor.

A forensic firm was appointed earlier this year to probe fraud, corruption and maladministration allegations in the municipality. Auditor General Terrence Nombembe’s 2009/10 report indicated R532m had been spent irregularly in the municipality.

Nxumalo said strict measures would be put in place to ensure departments adhered to supply chain management processes. The municipality would also not allow officials to flout tender procedures.

He said he expected employees to work productively and passionately to improve the lives of residents.

The municipality would continue “the great track record of unqualified audits”.

He would convene a two-day workshop in August where the city’s “strategic framework” would be mapped out. Improving the city’s economy, providing jobs and ensuring the costs of public transport, housing and basic services were reduced, would be among subjects to be discussed.

Former deputy mayor Logie Naidoo was voted the municipality’s new speaker on Monday. Executive committee member Nomvuzo Shabalala would fill the vacancy he left.

Naidoo got 134 votes to the beat the Democratic Alliance’s Warwick Chapman, who got 44. The African Christian Democratic Party’s speaker candidate Jonathan Naidoo managed to get three votes.

Speaking after he was sworn in, Naidoo said he would ensure the municipality was a leading council in South Africa.

“I will make sure that this council improves the lives of our people. I will make sure that service delivery is a priority.”

Credit to: News 24 and Sapa

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Info bill will make corruption easier- Samwu

The protection of information bill in its current state will make corruption within government easier, the SA Municipal Workers’ Union (Samwu) said.

“We wholeheartedly endorse the position of our federation, the Congress of SA Trade Unions, in criticising the current state of the protection of information bill,” Samwu spokesperson Tahir Sema said in a statement.

Numerous organisations and individuals have criticised the special committee on the bill, accusing it of trying to rush the proposed legislation through Parliament in its present form.

“We are also alarmed that the ANC parliamentary caucus is using its majority to ensure that no significant improvements and safeguards against abuse of the bill are being taken into consideration,” Sema said.

“If the protection of information bill goes ahead, it will not only enable a whole range of municipal documents to be classified as secret, but will also serve to protect those who are misusing their positions for private and nefarious gain,” he said.

Sema said that once information was classified, anyone found in possession of it would be liable for prosecution.

“In other words, if a municipal employee discovers corruption taking place and seeks to report the matter, they will not only be deemed to have exceeded their powers, but could be dismissed, and if they publicly disclose the documents can be prosecuted [leading to] whistleblowers and concerned citizens [being] criminalised,” he said.

“If this bill is passed in its current form, there are likely to be more service delivery protests, not less. There is likely to be more corruption, not less, and there is likely to be more disenchantment with our democratic society and its institutions.”

Sema said the bill was ill-considered and undermined parts of the country’s Constitution.
“Section 32 of the Constitution states that everyone has the right of access to (a) any information held by the state and (b) any information that is held by another person and that is required for the exercise or protection of any rights.

“Furthermore, Section 16 states that everyone has the right to freedom of expression, which includes freedom of the press and other media,” he said.

“In the interests of our democracy and the freedom of our people to access information and use it to ensure that their rights are protected, this bill must be stopped in its tracks.

“The parliamentary caucus must stop and listen to what civil society is saying, and engage them to find a democratic solution to the challenges they believe the current and inappropriate bill will address.

“Failure to do so will be a serious disservice to the people of this country,” Sema said.

Credit to: News 24 and Sapa

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Pothole problem improves- survey

A survey among 2 000 adults in the Gauteng metropolitan areas showed that a third of people believe the road pothole problem is being reduced, said TNS Research Surveys on Wednesday.

The biggest improvement was noted by Soweto residents – where 40% believed the pothole situation was getting better – and the West Rand, with 43% agreeing, said TNS director Neil Higgs.

In the Vaal Triangle only 12% of people surveyed believed the situation had improved.

In Johannesburg, excluding Soweto, 29% saw an improvement.

The study was conducted in all seven major metropolitan areas in February.

Credit to: News 24

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