eThekwini Municipality - Council Decisions

2014-01-30

Warwick Triangle Development plan on the cards

The multimillion rand Warwick Triangle re-development project has been given the green light by Council and it is set to change the face of the City.

City Manager, Sibusiso Sithole said Warwick Triangle is an important economic hub within the Municipality because commuters converge at the Warwick Triangle using road, rail and taxi transport to and from the City.

He said the development would help ease traffic congestion and improve cleanliness in that part of the City.

Sithole emphasised that the Early Morning Market traders would not be negatively affected by the development.

He said the infrastructure at the market would be refurbished, but the construction of a retail centre, new taxi ranks and ablution facilities formed part of the broader development plan for the area.

For the first phase of the development the Municipality will invest about R112 million in the non-motorised platform and taxi rank.

According to a report presented to Council, Berea Station Mall (Pty) Ltd together with the Passenger Rail Agency of South Africa (PRASA), being the developer for the R500 million train station upgrade, retail and commercial development will ensure that the upgrade project is of acceptable quality and comply with world-class standards.

In 2010 the project was delayed due to the possible and proposed relocation of informal traders at the Early Morning Market.

Deputy Mayor Nomvuzo Shabalala assured Council that an extensive consultation process will take place with all stakeholders to ensure that the development becomes a success.

“We will take all necessary steps to ensure that our stakeholders are part of the development,” she said.

Service delivery targets to be reached due to high capital spending

The eThekwini Municipality is likely to reach its service delivery targets because of an increase in capital expenditure in the first six months of the 2013/14 financial year.

The Council noted the Municipality’s mid-year budget and performance assessment report tabled during a meeting at City Hall yesterday, 29/01/14 which reflects an increase in capital expenditure of 38.8 percent for the first six months, compared to 27.5 percent in the same period last year.

Deputy Mayor Nomvuzo Shabalala applauded all departments for fully utilising the budget to fast-track service delivery.

“The departments have pulled up their socks. We have improved on capital expenditure to 38.8 percent from 27.5 percent last year which is very good,” she said.

According to the report, a high spend of 218 percent is anticipated at the end of the year due to the following:

However, City Manager, Sibusiso Sithole raised concerns over outstanding debt which includes business debt of R654,4 million that is subject to litigation and has been handed over to the Council’s panel of attorneys

Sithole said the amount of R35, 6 million owed over 90 days for Section 21 schools will be recovered from the Education Department.

“Other outstanding debt is related to valuation disputes and that matter is being addressed,” he said.

Decision to be made on the future of the Durban Transport Service

Council has endorsed the decision taken by the City Manager, Sibusiso Sithole in December to pay Durban Bus Service operator, Tansnat, an advance of R8.1 million to avert a disruption to the service.

Sithole had briefed Executive Committee (EXCO) members during the committee meeting on Tuesday, 28/01/14 that the advance payment to Tansnat was to enable the company to pay their staff to ensure a continuity of the bus service.

He said because of the urgency of the matter, it was not possible at the time to obtain approval from EXCO.

Sithole also advised Council that an urgent decision had to be taken on the future of the bus service to ensure that commuters were not affected by operational matters.

Various options have been presented to Council about the future sustainability of the bus service and the funding models the City should adopt to ensure the service runs more efficiently.

In August 2012 Council resolved that the Municipality would take over the full operation of the bus company.

Another option was that the City could either operate the Durban Transport Service as a council unit or as a trading service. The Municipality could also establish a Municipal entity in terms of the Local Government Municipal Systems Act to run the service.

Sithole yesterday said the Municipality had to decide on an option that would be in the best interest for the City’s ratepayers.

“We must speed up the process and make a decision on the ultimate option. Thereafter we must give a report to the Province through the task team, as they will have to give input because they have a say on the subsidy allocation,” said Sithole.

Sithole said the bus service had been briefly disrupted in December because of allegations that Tansnat employees had not been paid on time. Other allegations were that there were diesel supply problems.

He said the operator also claimed that it was owed R50 million by the City since 2010 which was being investigate.

“We are refuting the claim but we are not dismissing them, an independent service provider will do an analysis to determine the veracity of their claim,” said Sithole.

Mayor James Nxumalo said the eThekwini Transport Authority should present a thorough report to Exco on the future of the bus service.

Meanwhile, a report was presented to Council clarifying that an agreement had been signed by Sithole on 24/10/13 of which R18 million of the credit due to Tansnat was paid to the company on condition that they settled the debt they owe the City over a six month period.

Sithole said Tansnat agreed to sign a cession for the payment of R4 million per month to the City.

Claims by Tansnat that they were being over-charged were still being investigated.

New regulations approved relating to the erection of Registration/Election posters

Council approved the recommendation to amend the regulations relating to the erection of registration and election posters throughout the Municipality for the upcoming 2014 National and Provincial elections only.

The refundable fee that political parties are expected to pay if they wish to erect posters has been reduced from R200 to R100 per Party in each Ward.

The number of posters that can be erected is restricted to 800 per Party per Ward to prevent clutter.

City Manager, Sibusiso Sithole told the Executive Committe this week that the South African Local Government Association had requested Municipalities to waive restrictive by-laws, in particular the payment of deposits, pertaining to the display of posters during the election period.

Political parties are permitted to advertise in certain maximum control areas including highways, freeways and the beachfront for the purposes of election only.

The use of outdoor advertising modes such as banners and wall murals is also permitted for the elections.

All posters must be removed within 30 days of the National Elections and 14 days in the event of by-elections.

Sithole warned that failure to comply will result in the Municipality removing the posters and recovering R50 from the party concerned.

The City is optimistic about operation clean audit

The Municipality received an unqualified audit with other matters for the 2012/13 financial year, but is making a decisive break in line with the national requirements and aims to achieve a clean audit outcome in the 2013/14 financial year.

City Manager, Sibusiso Sithole said significant progress has been made by the Municipality to reduce irregular expenditure which was sitting at R1.3 billion in the 2010/11 financial year.

He said irregular expenditure had come down to R782, 5 million in the 2011/12 financial year to R325,54 million in the 2012/13 financial year.

The two Municipal entities, namely the Durban Marine Theme Park and the Inkosi Albert Luthuli International Convention Centre received clean audit reports in the 2012/13 financial year.

Sithole has emphasised that operation clean audit should be viewed as part of the City’s strategic vision of making Durban the most caring and liveable City in the African continent.

“Clean audit must be accompanied by tangible achievements of performance and meeting service delivery targets. There can be no genuine clean audit without service delivery,” said Sithole.

Ends

For more information contact the Municipal Spokesperson, Mr Thabo Mofokeng, on 031 311 4820 or 082 731 7456 or e-mail thabo1.mofokeng@durban.gov.za

Issued by the eThekwini Municipality’s Communications Unit. Contact Gugu Mbonambi on 031 311 4855 or email: gugu.mbonambi@durban.gov.za

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