The Executive Committee (EXCO) has ratified the spending of a budget of up to R1, 095 173 for the launch of the Cornubia Human Settlements project which was held last month (April). EXCO met at City Hall on Tuesday, 20/05/14.

Phase 1A of the project was launched by President Jacob Zuma and more than 10 000 people attended the event. Over 480 families have already been allocated homes in the first phase. Costs for the launch were shared between the National and Provincial Departments of Human Settlements and the Municipality. Due to Council being on recess for the election period, Mayor James Nxumalo signed the Rule of Order authorising the spending. An amount of R1, 904,827 was set aside as contingency to cover unforeseen expenditure that may have been necessary for the function.

City Manager Sibusiso Sithole explained that the full extent of the actual spending will be detailed in a report to be presented to EXCO in due course. “The actual amount spent could be far lesser than the budgeted figure. We will submit a report to EXCO giving the breakdown of the actual costs.”

Speaker Logie Naidoo said the project enjoys the status of being a Presidential Project and its implementation had set high standards for the country. “Everyone is coming to the City to learn how we’ve done it here. Half of the national Cabinet, including the President, attended the launch.”

Extension of contract for KwaXimba housing development

EXCO agreed to the appointment of a contractor to finalise construction of the KwaXimba Rural Human Settlements Project and the amendment of the scope of the contract. Explaining the reasons for the amendment of the contract, City Manager Sithole said eight local contractors were appointed in October 2012 to construct 850 houses, with each contractor allocated 106 top structures. However seven of the contractors had failed to deliver on time and were issued with non-performance letters in August last year. Only one contractor was performing and building houses to the required standards.

“Some of the sites were abandoned for a period of three months and as the Municipality we had to take over the project. The situation in KwaXimba is volatile politically and we are extending the work of the one performing contractor to finish the remaining houses. We have added 275 houses to the existing contract of 106 houses that he has already built.”

The existing budget of R8, 096, 280 has been increased to R33, 591,661. This increase includes the construction of additional 275 houses, NHBRC requirements previously not applicable, site access and security. Sithole said the increases were in line with the current housing subsidy threshold of about R97 000.

Deputy Mayor Nomvuzo Shabalala - who chaired EXCO in the absence of Mayor James Nxumalo who is on an international visit - said the Municipality has been assured by the community that there will be no disruption of the project. She said the continuation of the project was necessary in order to ensure continued stability in the community.

SALGA hails City’s oversight committees

EThekwini Municipality’s Municipal Public Accounts Committee (MPAC) and other oversight committees have been identified and shared as best practices on Section 79 Committees by the South African Local Government Association (SALGA). A report by the SALGA National Governance and Intergovernmental Relations Working Group was noted by EXCO.

The report followed a survey by SALGA to gauge the state of oversight in municipalities and to identify good practices of functionality which could be shared with other municipalities. EThekwini was chosen with Fezile Dabi District Municipality, The Big 5 False Bay Local Municipality and Msunduzi Local Municipality. The report states that eThekwini Municipality has established the following Section 79 oversight committees; Speaker and Party Whips Committee, AIDS Committee and MPAC.

“These committees are fully functional and they have councillors as members and advisory members that have been co-opted based on their expertise and experience…. EThekwini’s section 79 committees Terms of References are stated with clarity and this makes it straightforward for members of the committee, relevant stakeholders and the public to understand, articulate and appreciate the role of section 79 committees.”

Chairperson of Human Settlements and Infrastructure Committee, Cllr Nigel Gumede said; “This is the result of the wonderful work that has been done by officials and councillors which has put us on the map and we are setting an example for everyone. This shows that we are running the City in a manner that is heading us towards a clean audit.”

City wins another award

The Executive Committee was presented with a recognition certificate after being chosen as the Best Innovative District in the 20 years of Freedom Celebrations that were recently held throughout KwaZulu-Natal as part of the Operation Sukuma Sakhe programme. “We are a winning City in terms of the development that we bring for our people. We continue to receive awards in recognition of the effort that we always put in to all aspects of our performance as a local government,” said Deputy Mayor Shabalala.

Mayoral fleet upgraded

EXCO approved the purchase six vehicles to replace the ageing Mayoral Fleet. The current fleet consists of vehicles that have clocked up to 388 000 km and prone to mechanical breakdowns. The vehicles to be replaced include NDM1: BMW 750i (2008 model, 148 000 km); NDM 4: BMW 320i (2008 model, 165 000 km); NDM 5; BMW 320i (2008 model, 141 000 km); NDM Land Cruiser (2001 model, 388 000 km) NDM 9: Toyota Prado (2012 model, accident write off) and BMW 320i (2008 model, 191 000 km).

EXCO praised the Mayor for approving the replacement vehicles with modest pricing and adhering to National Treasury directive for a conservative approach in the purchase of municipal vehicles.

• The BMW 750i (current identical model will cost R1, 101 972) will be replaced with either the BMW 520d at a cost of R498 380 or a Mercedes Benz E200 Elegance at a cost of R542 037;
• The three BMW 320is will be replaced by same models with automatic transmissions at a cost of R353 473 each;
• The Toyota Land Cruiser 200 VX (R980 020) will be replaced with the a Jeep Grand Cherokee 3.6 Overland at a cost of R588 999;
• The Toyota Land Cruiser Prado (R665 487) will be replaced by the Toyota Fortuner 3.0 at a cost of R410 780.

“The Mayor has shown great leadership firstly by following National Treasury regulations and secondly by using vehicles that are much less in value than those that are being used by other Municipalities with less status than eThekwini Metro,” said City Manager Sithole.

Ends

Issued by the Head of Communications, Ms Tozi Mthethwa.

For more information contact Municipal Spokesperson Thabo Mofokeng on 031 311 4820 / 082 731 7456 or email Thabo1.Mofokeng@durban.gov.za.