UMZINYATHI DISTRICT MUNICIPALITY

PROFILE

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TABLE OF CONTENTS

EXECUTIVE SUMMARY 31. INTRODUCTION 41.1 Overview 41.2 Municipalities within the District 51.3 Political and Administrative Leadership and Seat of District 51.4 Political Representation 62. SERVICE DELIVERY 72.1 Household Infrastructure 72.2 Sanitation 72.3 Water 72.4 Electricity 82.5 Refuse Removal 82.6 Service Provider 83. AUDIT OPINIONS 84. STATE OF LOCAL GOVERNMENT ASSESSMENT 94.1 Overview of findings on assessment in the Municipality 94.1.1 Governance 94.1.2 Financial Management and Viability 94.1.3 Service Delivery 105. INFRASTRUCTURE PRIORITIES IN TERMS OF THE MUNICIPAL

TURN-AROUND STRATEGY10

6. MIG PROJECTS 117. VULNERABILITY CLASSIFICATION 13

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EXECUTIVE SUMMARY

Umzinyathi District Municipality is situated in northern KwaZulu-Natal and comprises four local municipalities. Dundee and Greytown are well placed to function as administrative and regional service centres respectively. Historical imbalances have left Msinga and Nquthu municipalities far less developed. They have rural-based subsistence economies with cultural heritage areas that attract some tourists but need to be substantially developed.

More than half of households (55%) earn less than R18 000 per annum, 23% receive no income at all and only 15% of people are employed. There are high rates of illiteracy, with 33% of the population having had no formal education. There are still huge backlogs in access to water, electricity and sanitation.

Unzinyathi District together with Sisonke have the lowest access to infrastructure amongst the districts in the province. An overview of household access to infrastructure in the district shows an improvement from a low level of 28% in 1996 to 40% in 2009. The main contributor to the increase in access is electricity infrastructure. Access to piped water above RDP level increased from a low level of only 28% to 38% from 1996 to 2009.

In 2009/10 all municipalities in the Umzinyathi district, except Nqutu obtained financially unqualified audit outcomes with findings. Between 2005/6 and 2008/9 all audit outcomes for Nqutu were disclaimers, with a qualified opinion in 2009/10.

Umziyathi District was highlighted in the KwaZulu-Natal State of Local Government Assessment as one of 19 municipalities that recorded serious challenges in most of the focus areas, including governance and financial management.

In terms of its Municipal Turn-Around Strategy the Umzinyathi District Municipality identified the need to address serious backlogs in water, sanitation and electricity, as well address the municipal waste situation where sites are full to capacity.

Two of the four local municipalities in the Umzinyathi District have been classified as in the category of most vulnerable by DCoG in terms of functionality, socio-economic profile and backlog status. This profile confirms that infrastructure prioritisation require funding and technical assistance for the implementation of a water and sanitation master plan, an integrated energy plan as well as construction of required waste sites.

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1. INTRODUCTION

1.1 Overview1

Umzinyathi District Municipality is situated in northern KwaZulu-Natal. It lies between the N3 corridor from Durban and Gauteng and the coastal corridor on the east coast.

The main road linkages are the R33 (Dundee to Vryheid), the R68 east from Dundee through Nquthu to Melmoth and the R74 linking Greytown to Stanger. Umzinyathi extends over 8 589.16 km2 and comprises four local municipalities, namely Endumeni, Nquthu, Msinga and Umvoti. The total population is 501 896.

The trade centre Dundee is situated in Endumeni Municipality. The main economic activities are retail, tourism and farming. Dundee is a centre from which tourism based on the cultural heritage of the Zulu Kingdom and battlefields is emphasised and managed to some extent. The main town in Umvoti Municipality is Greytown. It is the agricultural centre of the district and contributes substantially to the economic viability of the district. Dundee and Greytown are well placed to function as administrative and regional service centres respectively.

Dundee has significant infrastructure, private sector investment and administrative support. Greytown faces several development issues, including expansion of the CBD, development of new residential areas and revitalizing industrial zones. Historical imbalances have left Msinga and Nquthu municipalities far less developed. They have rural-based subsistence economies with cultural heritage areas that attract some tourists but need to be substantially developed.

The main towns are Nqutu, Pomeroy and Tugela Ferry. Throughout the district, agriculture is a major contributor to the economy and has significant potential for growth throughout Umzinyathi. The areas around the Tugela and Buffalo rivers have a great deal of potential for irrigated farming.

Mineral deposits found in the district include coal and metal ores. Coal was once mined on a large scale in Endumeni Municipality. The coal-mining industry is undergoing a restructuring process and there is a decline in corporate interest. It now contributes less than 2% to the economy; however, there is an interest in the small-scale regeneration of the coal belt for SMME development.

A small amount of stone quarrying occurs in the district. More than half of households (55%) earn less than R18 000 per annum, 23% receive no income at all and only 15% of people are employed. There are high rates of illiteracy, with 33% of the population having had no formal education. Sixty-nine percent of households do not have basic access to water, 32% have no sanitation facilities and 61% do not have electricity.

1 Source: Gaffney’s, November 2009: Local Government in South Africa 2009 – 2011, Official Yearbook: p 834 - 836.

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Tourism opportunities abound throughout the district but are best utilised in Endumeni Municipality. Significant sites include waterfalls, raptor breeding sites, a yellowwood forest and Paddavlei and Gladstone Vlei. Umzinyathi District Municipality, in conjunction with its northwestern neighbour Amajuba Municipality, is branded as the ‘custodian’ of the ‘Battlefields Region of the Zulu Kingdom’.

In conjunction with the beaches of the south and north coasts and the Big Five game attractions in the east of KwaZulu-Natal, the battlefields of the Zulu Kingdom play a vital role in the economy of the province from a tourism perspective. However, within Umzinyathi, the range of battlefields attractions is not adequately harnessed for creating jobs.

1.2 Local Municipalities in the Umzinyathi District

The details of the four local municipalities within the District is tabled below:

Table 1: Statistics of the Umzinyathi District and Local Municipalities

Municipalities within the District

Area (km2)

in 2009

Area (km2) after 2011Local

Government Elections & %

change

Population

No. ofHouseholds

PovertyRate

Umzinyathi District Municipality

8,589.16 8,589.16 - 501,896 105,840 71.35%

Endumeni Local Municipality

1,610.23 1,610.23 - 55,118 13,926 48.33%

Msinga Local Municipality

2,501.14 2,501.14 - 163,904 32,998 76.76%

Nquthu Local Municipality

1,962.26 1,962.26 - 166,940 32,571 80.88%

Umvoti Local Municipality

2,515.53 2,515.53 - 115,934 26,345 79.42%

1.3 Political and Administrative Leadership and Seat of District2

Political Leadership: Executive Mayor: Rev JM MthethwaAdministrative Leadership: Municipal Manager: Mr SN Dubazana

The head office of the District is located in Dundee.

2 Source: Umzinyathi DM; August 2011

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1.4 Political representation3

Table 2: Local Government Election 2006 / Provincial and National Elections 2009 comparison:

Leading Parties in the Elections

Local Government Elections 2006 Provincial Elections 2009 National Elections 2009Party Party Votes and

%Ward Votes and %

Councillor Seats Party Votes and % Party Votes and %Party Seats %

1st IFP 68,011 68.7% 68,389 69.0% IFP 17 73.9% IFP 68,615 47.7% ANC 70,062 47.9%

2nd ANC 23,315 23.5% 22,920 23.1% ANC 5 21.7% ANC 67,376 46.9% IFP 67,129 45.9%

3rd DA 4,795 4.8% 4,420 4.5% DA 1 4.3% DA 4,200 2.9% DA 4,640 3.2%

4th - - - - - 23 ACDP 618 0.4% ACDP 644 0.4%

Other 2,944 3.0% 3,346 3.4% Other Other 2,939 2.0% Other 3,868 2.6%

Totals 99,065 100% 99,075 100% 143,748 100% 146,343 100%

2011 Local Government Election results and seat allocations:

The ANC is the leading party in terms of proportional DC40 Seats in Umzinyathi, with 11 seats of 25 seats.4

3 UPDATE Aug’09: DC40 seats – IFP (67%) 6 seats, ANC (22%) 2 seats, DA (11%) 1 seat, Total 9 DC40 seats4 Source: Umzinyathi DM; August 2011

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2. SERVICE DELIVERY5

2.1 Umzinyathi District Municipality Household Infrastructure

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 20090.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

Household Infrastructure OverviewKZN - DC24 Umzinyathi District Municipality

KZN - DC24 Umzinyathi...

Inde

x

Source: IHS Global Insight Regional eXplorer version 574

Unzinyathi District together with Sisonke have the lowest access to infrastructure amongst the districts in the province. An overview of household access to infrastructure in the district shows an improvement from a low level of 28% in 1996 to 40% in 2009. The main contributor to the increase in access is electricity infrastructure.

2.2 Sanitation

With regard to access to sanitation, the district municipality’s household access to hygienic toilets has gone up from 23% in 1996 to 47% in 2009. The improvement in access to sanitation in general in the Municipality is mainly due to the increase in the use of pit latrines with ventilation.

2.3 Water

There are low levels of access to clean water in the district. Access to piped water above RDP level increased from a low level of only 28% to 38% from 1996 to 2009. Similarly, there has been an increase as well in access to piped water below RDP level and about 20% of households are now getting this service.

5 Sources: IHS Global Insight Regional eXplorer version 574 and Municipal Demarcation Board, 2008: National Report on Local Government Capacity, District and Local Municipalities, MDB Capacity Assessment, 2007/2008.

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2.4 Electricity

The increase in electricity connections is the biggest infrastructure achievement in the municipality. In 1996, household access to electricity connections was at a low level of 16%. Access has, however, increased over the years reaching 56% by 2009.

2.5 Refuse removal

There has been a slight increase in access to formal refuse removal service from 1996 to 2008 in the Municipality. Access has gone up from 15% in 1996 to 21% in 2009. While this is the case, personal refuse removal went down over the years from 60% in 1996 to 50% in 2009. The high levels of personal refuse removal must be taken in the context of low settlement densities, where on-site disposal or backyard burning of waste is sometimes appropriate.

2.6 Service provider

Umzinyathi district does not have authority and does not perform the electricity reticulation function. The district, however, has authority and performs potable water and sanitation functions. The district has no authority and is not performing the refuse removal, refuse dumps and solid waste disposal function.

3. AUDIT OPINIONS

Table 3: Audit Opinions of the District and Local Municipalities

Municipality Audit Opinion 2005/6

Audit Opinion 2006/7

Audit Opinion 2007/8

Audit Opinion 2008/9

Audit Opinion 2009/10

Umzinyathi DM

Disclaimer Disclaimer Qualified Financially unqualified with findings

Financially unqualified with findings

Endumeni LM

Qualified Adverse Qualified Financially unqualified with findings

Financially unqualified with findings

Msinga LM Financially unqualified with other matters

Qualified Financially unqualified with other matters

Financially unqualified with findings

Financially unqualified with findings

Nquthu LM Disclaimer Disclaimer Disclaimer Disclaimer QualifiedUmvoti LM Financially

unqualified with other matters

Financially unqualified with other matters

Financially unqualified with other matters

Financially unqualified with findings

Financially unqualified with findings

Source: Auditor-General 2009 and 2011, see. www.agsa.co.za

Between 2005/6 and 2009/10 Umvoti secured financially unqualified audit results in each financial year. In the same period Nquthu received disclaimers and one qualified

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audit. Msinga only received a qualified audit outcome once in the period 2005/6 – 2009/10.

4. STATE OF LOCAL GOVERNMENT ASSESSMENT

4.1 Overview of findings on assessment in the municipality

Umzinyathi District Municipality has been identified in the KwaZulu-Natal State of Local Government Assessment as one of 19 municipalities that recorded serious challenges in most of the focus areas and should therefore be prioritised for immediate intervention.

4.1.1 Governance

Umzinyathi District Municipality is one of 17 municipalities in KwaZulu-Natal affected by political instability. The Provincial Report lists a number of causes of political instability including: the lack of understanding and adherence to the roles and responsibilities of political office bearers, interference in council matters from the regional and provincial political structures, a lack of deliberations on matters in council, domination of some councils by politically powerful administrations, power struggles between political office bearers from same party and a lack of communication and public participation frameworks creates environment for uncoordinated interaction with community.

Umzinyathi District Municipality is one of 8 municipalities in KwaZulu-Natal facing serious challenges in the political and administrative interface. According to the Provincial Report the most recorded complaint by stakeholders is the tendency to appoint politically aligned Municipal Managers and Section 57 Managers. Some of the other reasons for a poor relationship between the political and administrative components which negatively affects service delivery are: councillors getting over-ruled by officials; political office bearers interfering in administrative function;, lack of strategic direction on service delivery by council due to poor leadership and focus on political rule in council; and staff forced to show political alliance to ensure job security.

Umzinyathi District Municipality is one of 24 councils that do not seem to perform any oversight function and should be supported to implement the oversight role. The Provincial Report states that the lack of Councillor Oversight has emerged as the single most contributing factor to poor governance and service delivery. A large number of Councillors appear not to appreciate the nature and importance of their oversight role and the administration seem to ignore the need for oversight due to the administrative and accountability implications it will have for them.

4.1.2 Financial Management and Administration

Umzinyathi District Municipality is also one of 30 municipalities in KwaZulu-Natal that are facing serious financial management challenges. The Provincial Report lists some of these concerns, including: poor financial planning, inadequately skilled staff appointed, lack of proper financial controls, poor financial competencies of elected representatives, and unemployment and poverty had a negative effect on credit control

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and income. There is also a general perception that councils are not transparent when it comes to financial policies and activities and that the reason for this is to hide their corrupt practices from the public.

4.1.3 Service Delivery

The Umzinyathi District Municipality and its four local municipalities were not identified as part of the 20 municipalities in KwaZulu-Natal which have serious challenges in this focus area. However the 2007 Community census identified high number of people in the district without access to water (43.4%), sanitation (52.4%) and electricity (64.1%).

5. INFRASTRUCTURE PRIORITIES OF THE MUNICIPAL TURN-AROUND STRATEGY

The Umzinyathi District Municipality identified a number of priorities for basic service delivery in the Umzinyathi Municipal Turn-Around Strategy. There are serious service delivery backlogs in the municipality in terms of all basic services.

Table 4 : Infrastructure delivery in terms of the MTAS

Access to water and sanitation

Operations & maintenance

Access to Electricity

Refuse removal and solid waste disposal

Challenges Current water backlog is 38852 households Current sanitation backlog is 30307 households

Service delivery challenges

Serious service delivery backlogs iro electricity

Current local municipality waste sites are full to capacity

Municipal Actions

Increasing Households connected to water

Increasing households provide with VIPs

Drilling of new boreholes and protection of springs to provide water in areas where there are no water scheme

Undertaking of Section 78 assessment

R 70 m proposed for allocation to uThukela water

Will initiate the formulation of an integrated energy plan

To rehabilitate Glencoe, Nq uthu and Pomeroy

6 sites have been selected and EIA processes are underway

Construction of two regional waste sites

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Other support and interventions

Funding assistance for the implementation of the master plan to the value of R 1,6 billion from DWAF, COGTA, external funders and possible increase of MIG to address backlogs.

Technical and financial assistance will be required from DWAF and COGTA and DBSA.

Technical and financial assistance will be required from DEAT

6. MIG PROJECTS6

Table 5: MIG projects

Municipality Project name MIG funds Actual expenditure in the 2010/11 financial year

Project status (Registered/design/tender/construction)

Project category (e.g. water, sanitation, PMU)

Umzinyathi DM

Kwajama VIP Sanitation (AFA) MIS 3491 R 16,605,734.00 R 1,006,180.53 Construction SanitationUmzinyathi DM Rudimentary

R 39,636,660.00R 8,720,278.66

Construction WaterEndumeni LM

Karel Landman Road and Stormwater R 7,321,356.00 R 6,260,611.59 Construction

Road & Stormwater

Dundee Buffer Strip Roads and Stormwater R 4,303,913.00 R 405,988.20 Construction

Road & Stormwater

Sithembile Phase Two Roads and Stormwater R 6,475,621.00 R 786,952.22 Construction

Road & Stormwater

Karel Landman Road and Stormwater Phase 2 R 6,000,000.00 R 1,068,884.34 Construction

Road & Stormwater

Sithembile Housing Bulk Services R 26,134,342.00 R 9,334,637.82 Construction WaterFeasibility study for Dundee Bulk Water Supply

R 2,780,548.00 R 1,486,310.48 Design & Tender WaterNquthu LM

Qhudeni Community Hall R 1,509,031.39 R 65,612.22 CompletedMulti purpose community halls

Patsoana Mfihlelwane Road & Bridges R 2,077,508.07 R 408,673.69 Construction

Road & Stormwater

Hlathi Mazibuko Road and Bridge R 1,482,718.00 R 313,288.72 Completed

Road & Stormwater

Rehabilitation Of Nquthu Council Chamber R 950,000.00 R 543,130.66 Construction Admin FacilitiesWard 3 Taxi Rank R 1,624,705.40 R 70,982.21 Construction Taxi Ranks

6 According to the June 2011 non-financial report on Municipal Infrastructure Grant, KwaZulu-Natal has not adopted the new format of reporting on MIG projects. As a result, it becomes a challenge to track the implementation of MIG projects in that province.

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Ward 13 Stormwater Protection R 1,179,785.18 R 375,852.24 Completed StormwaterNquthu Paving Project R 2,900,000.00 R 80,654.48 Completed SidewalksVulamehlo Taxi Route and Bridge R 3,648,310.00 R 138,313.87 Completed

Road & Stormwater

Nodweni Section 5 Taxi Route R 1,380,000.00 -R 172,209.13 Completed Taxi RanksNgwebini Bridge and Road R 1,715,700.00 R 63,228.25 Completed

Road & Stormwater

Umthutshane Road and Bridge R 2,445,300.00 R 67,209.80 Construction

Road & Stormwater

Shayamoya Road and Bridge (AFA) MIS 199295 R 1,383,228.85 R 130,048.54 Completed

Road & Stormwater

Nkande Hall (AFA) MIS 190647 R 1,046,577.16 R 456,502.66 Construction

Multi purpose community halls

Machitshane Road R 3,270,184.42 R 181,622.07 ConstructionRoad & Stormwater

Mthutshana Bridge R 1,482,179.24 R 622,779.98 ConstructionRoad & Stormwater

Magogo Road R 4,868,291.96 R 1,216,549.92 ConstructionRoad & Stormwater

Ntandoyomphakathi Roads and Stormwater R 9,201,168.00 R 1,934,119.77 Completed

Road & Stormwater

Dalala Road R 5,809,212.00 R 1,930,072.35 ConstructionRoad & Stormwater

Mpisini Causeway R 1,073,945.00 R 379,147.62 ConstructionRoad & Stormwater

Ndindindi Road R 3,329,999.00 R 2,114,319.23 ConstructionRoad & Stormwater

Hwanqana Road R 3,015,592.00 R 2,389,510.49 ConstructionRoad & Stormwater

Kwanyezi Community Hall R 2,601,152.00 R 663,020.88 Construction

Multi purpose community halls

Ward 13 Road R 8,564,803.94 R 2,606,368.88 ConstructionRoad & Stormwater

Nomalanga Road R 6,936,004.79 R 703,386.40 ConstructionRoad & Stormwater

Luvisi Community Hall R 3,154,000.00 R 187,752.45 Design & TenderMulti purpose community halls

Umvoti LM Enhlalakhle 492 Bus Route R 2,892,692.00 R 489,623.43 Construction

Road & Stormwater

Boskom to Engoje Road / Bridge R 2,512,500.00 R 429,692.22 Completed

Road & Stormwater

Ext of Mhlabathini Road R 3,423,796.00 R 590,013.79 CompletedRoad & Stormwater

Mshayanyoni Road to Hlwimbitha Bridge R 2,859,120.00 R 3,430.95 Construction

Road & Stormwater

Kranskop Internal Roads R 3,750,000.00 R 1,656,106.70 ConstructionRoad & Stormwater

Construction of Paved Sidewalk R 315,000.00 R 9,460.01 Construction SidewalksRehabilitation of Kwasizabantu Road R 2,400,000.00 R 1,611,945.63 Construction

Road & Stormwater

Construction of Lozi Kwasunda Gravel Road R 4,600,000.00 R 3,643,928.93 Construction

Road & Stormwater

New Greytown Traffic Department R 8,292,455.00 R 2,739,796.13 Construction Admin FacilitiesOphathe Water Supply Phase 2 R 35,000,000.00 R 13,575,783.15 Construction WaterMakhabeleni Regional R 46,200,117.00 R 22,977,560.55 Construction Water

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Water Supply Scheme: Phase 4 and 5 and Bulk Upgrade (AFA) MIS 193588Makhabeleni Sanitation Project – Implementation R 23,004,850.00 R 8,622,804.39 Construction SanitationHlimbithwa Sanitation Project

R 13,652,789.00 R 1,045,970.07 Construction SanitationHlimbithwa Makhabeleni Community Water Project

R 676,182.00 R 118,998.08 Design & Tender WaterMsinga LM Msinga Roads 2009

/2010 Project 2 R 15,371,714.59 R 9,544,664.10 ConstructionRoad & Stormwater

Msinga Roads 2010 /2011 Project 3 R 23,872,243.01 R 7,979,426.31 Construction

Road & Stormwater

Pomeroy Sub Regional Scheme Phase 1 R 22,311,268.00 R 37,046.58 Completed WaterNgubukazi Water Supply Scheme Phase 2 R 9,377,214.00 R 58,995.01 Construction WaterMbono Regional Bulk Water Supply Scheme (AFA) MIS 201127 R 100,435,961.44 R 25,792,593.15 Construction WaterKwakopi / Mhlangana VIP Sanitation R 59,851,339.00 R 11,200,497.71 Construction SanitationMuden Regional Bulk Water Supply Scheme R 189,253,289.00 R 3,246,388.34 Construction WaterMuden Sanitation R 43,865,812.00 R 3,621,565.30 Construction SanitationPomeroy Douglas Sanitation R 60,032,243.00 R 10,601,962.27 Construction SanitationMthembu West - Extension R 31,745,056.00 R 841,332.36 Registered WaterMsinga Regional Bulk Water Supply R 525,426.00 R 475,242.57 Design & Tender Water

Source: All MIG projects, 2011 June

As indicated in table 6, most projects in Endumeni, Nquthu and Umvoti are about roads and stormwater. In the case of Msinga there are more water projects than other categories of MIG projects. Most projects in Endumeni and Msinga are at a construction phase, whereas in Nquthu a sizable number has been completed. The June 2011 non-financial report on MIG states that Umzinyathi district and its locals did not submit their MIG reports for the month of June.

7. VULNERABILITY CLASSIFICATION

The DCoG Municipal Spatial Classification System was designed to develop municipal profiles according to spatial location, based upon results from indicator sets on functionality, socio-economic profile and backlog status. Its purpose is to inform a differentiated approach to municipalities.

The four municipal classifications developed by DCoG are:

Class 1: Most vulnerable (57 local municipalities)Class 2: Second most vulnerable (58 local municipalities)Class 3: Second highest performing (58 local municipalities)

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Class 4: Highest performing (58 local municipalities)

The four local municipalities in the Umzinyathi District can be classified as follow:

Table 6: Vulnerability Classification

Local Municipality ClassificationEndumeni Second highest

performingMsinga Most vulnerableNquthu Most vulnerableUmvoti Second most

vulnerable

From this table it is evident that two of the four local municipalities in the Umzinyathi District fall into the most vulnerable category.

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