Sakha iMbombela Turnaround Strategy

1. October 2008 SakhaiMbombela Turnaround Strategy

2. Table of Contents Page Introduction 3 Problem Statement 3 Specific Areas in Need of Immediate Intervention 5 How do we arrive at our envisaged destination 6 - 7 Case for Change 8 Vision 8 Mission 8 Municipal core values 8 Mbombela African Pot 9 The Executive Mayor’s 7 Pillars of the turnaround strategy 10 Areas of focus 11 Getting the basics right 12 Strategic objectives 13 – 15 The Organisational Design Framework 16 Risk Management 17 Roadmap 18 Way forward 19 Log Frame 20 – 24 Institutional Coordination 27 Progress-to-date 28 Prioritisation of projects 29 – 31

3. Introduction • Problem Statement The fact that the Municipality was under administration until 30 September 2008 The lack of a long-term Regional Development Strategy that forms the basis for the medium-term Integrated Development Plan (IDP) and also no capacity to implement the IDP The absence of Institutional arrangements relating to Political Leadership and Management, Corporate Governance Mechanisms outlining roles, responsibilities and accountabilities of the different structures of the organisation Outdated policies and procedures The breakdown in the ability of council to operate normally and exercise it’s primary objectives as outlined in the constitution of the country, the structures act, the municipal finance management act and other related governance and management laws The Municipality does not seem to have succeeded in organizing itself in such a manner to be the key driver of creating globally competitive and attractive economic region Inadequate human resources – i.e. vacancies Lack of clearly defined roles and responsibilities Disjointed nature of coordinating strategies and plans Lack of a focused strategy to mobilise resources nor an effective strategic centre No uniformity in understanding the extent of performance No stakeholder mobilisation strategies Inaccurate information in circulation No community empowerment and participation No 2010 integrated economic development strategies, nor synergy between with IDP’s, the provincial Flagships and Branding initiatives No focused IGR process mobilising government across all spheres

4. Introduction (continued…)‏ Specific areas in need of immediate intervention • Institutional Turnaround strategy • Municipal Governance Improvement - Legislative and regulatory framework - Policy development - Finance - Human resources - Asset management - Debtors control - Budget management and control - Fleet management - IT management - Service delivery • IDP Priority projects implementation • SCM policy review & redevelopment • Human Resource allocation – Mayoral committees & officials • 2010 project resourcing & implementation • Twining partnership improvement • Strategic Corporate Support

5. How do we arrive at envisaged destination?

6. How do we arrive at envisaged destination(continued…)‏ Roadmap to a Better Tomorrow; a Platform for Partnerships and a Foundation for Sustainable and Integrated Community Development Diagnostic • Situational analysis • Institutional appraisal Gap analysis • Institutional review Synthesis • Strategy development Implementation planning • Turnaround strategy Implementation • Change management intervention Tracking • Monitoring and evaluation Embedding • Business processes and systems • 2010 Host city obligations

7. Case for Change Vision - Together in partnership, building a model African City of Excellence. Mission Statement - “A vision-inspired, high performing and learning municipality that excels in development facilitation and sustainable service delivery through Batho Pele and sound corporate governance principles”. Municipal Core Values: “THE PEACE” - T: Transparency - H: Honesty - E: Excellence to Communities - P: Passion - E: Efficiency - A: Accountability - C: Commitment - E: Empathy

8. Case for change (continued…)‏ Mbombela African Pot

9. Case for change (continued…)‏ The Executive Mayor’s 7 Pillars of the Mbombela Turnaround Strategy, Building a Foundation for the Mbombela Local Municipality

10. Case for change (Mbombela Macro-Environment)

11. Case for change (The Municipal Business Model) The Municipal Business Model

12. Case for change (continued…)‏ Human and Community Development Cluster Corporate Governance Cluster Economic Development Cluster • Moral Regeneration Initiatives • Civic Education – peace; democracy and conflict management • HR Development Strategy • Skills Development Strategy and E-learning • Community Development, Empowerment and Participation Strategy • Youth Development Strategy • Integrated Rural Development Strategy • Urban Renewal Strategy • Early Childhood Development Strategy • Social Security & Poverty Alleviation Strategy • National Youth Service and EPWP • Environmental Management Plan • Indigent Policy and Management strategy • Parks & Amenities Management Model • Sports & Recreation Development Strategy • Arts, Culture & Heritage Management Plan • Cross-Border Peace & Friendship Initiatives • Reconciliation & Nation building Initiatives • African Renaissance & Nepad Promotion • Formulating an approach in dealing with Traditional Communities • Legislative and constitutional issues • Municipal objectives • Priorities and programmes • Strategy plans and programmes • Policies and procedures • Highly sustainable service excellence • Highly skilled and motivated and professional workforce • Efficient programme management • Stakeholder development • Thought leadership and responsibility • Functional management – core business; finance; human resources; etc. • Specific challenges – e.g. special programmes management; inter-governmental relations; etc. • Leadership Development Strategy • E-Governance • Integrated Crime Prevention Strategy • Anti-Fraud and Corruption Strategy • 21 Principles/ Attributes of Excellence in Leadership • Strategic relationship between the Municipality and integrated 2010 team • Macro-economic policy development, management and coordination • Local Economic Growth and Development Strategy • Sectoral Development Strategy • Linkage between the IDP and the Maputo Corridor • Strategic relationship between the Municipality and the integrated 2010 team • Land restitution integration into the IDP • Enterprise Development (incl. BBBEE)‏ • Agri-Business • Agricultural Development Strategy • Infrastructure Development • Trade and Investment Promotion • Revenue Generation • Integrated Transport Network Strategy • Aviation Strategy • Public Transport Strategy • Integrated Intelligence Transport Solutions • ICT Plans and Broadband Connectivity • BPO Infrastructure • Local Tourism Development an Marketing Strategy • Destination Marketing • Areas of focus

13. Case for change (continued…)‏ Getting the basics right

14. Case for change (continued…)‏ Objectives Key Performance Areas (KPA’s)‏ To build strong and sustainable governance and institutional structures and arrangements • To continue to enhance an already committed workforce • To enhance our ability to continue with service delivery • To strive to progress Mbombela into a fully integrated, capacitated and performance-driven institution • To ensure that our policies, procedures and systems are fully updated and implemented to enhance institutional support • To strengthen the Supply Chain Management system • To clearly define the roles between the political and the administrative as well as the executive and legislative responsibilities of the institution • To implement a well defined framework for defining roles, responsibilities and accountabilities • To institute a well informed and functioning Performance Measurement/ Management system • To ameliorate the human resources capacity as well as the general management control environments. This should include aspects raised in previous Auditor-General management letters • To development and implement a Human Resource Management strategy that relates to the IDP • To ensure that all vacancies are filled and that the efficiency of the human resources are strengthened • To implement sound legal management and minimise the risk of litigation against council • Strategic objectives

15. Case for change (continued…)‏ Objectives Key Performance Areas (KPA’s)‏ To strengthen the delivery of basic services and ensure sustained infrastructure development • Ineffective Infrastructure Development programme and maintenance plans • Inadequate transport infrastructure • Deteriorating service delivery and infrastructure maintenance services and the inability to meet national and provincial targets To ensure a sound and legally compliant system of Financial Management and viability • Lack of revenue generation, collection and management strategies • Low credit rating impacting negatively on the capacity of the municipality to raise capital • Implementation of the previous GAMAP/ GRAP exceptions – GRAP accounting standards relating to infrastructure assets • The uncertain credit rating of Mbombela To redefine strategic macro-leadership and coordinating structures involving the Local, District, Provincial and National government • Clear vision of what the Municipality wants to achieve on the long term • Mbombela image and branding • History of political instability and infighting which compromised the integrity of the Municipality • The visionary leadership and commitment to co-operative governance by Ehlanzeni District Municipality and the planned new administrative complex • Willingness and readiness by municipalities neighbouring Mbombela to co-operate, collaborate whilst ensuring synergies in the execution of our respective mandates • The Mpumalanga Provincial Government Big 5 flagship projects • The Mpumalanga Provincial branding initiative • Commitment by the Provincial Government to turn Mbombela around

16. Case for change (continued…)‏ Objectives Key Performance Areas (KPA’s)‏ To initiate a strong and sustainable Local/ Regional Economic Development Potential • The inner city regeneration intentions • Gateway to Southern Africa especially Mozambique and Swaziland (regional economic potential)‏ • The twinning arrangements Mpumalanga and Mbombela have both within the continent and internationally • The strong agricultural based economy (in the midst of food security challenges)‏ • African Renaissance, Nepad and SADC Governance and Socio-Economic integration initiatives • The potential growth of the Tourism industry • Good road infrastructure, linking the province with the major centres of the economy both within South Africa and Southern African States • Current economic pressures facing the country (High interest rates and high inflation rates)‏ • Local Economic Development initiatives which do not adequately respond to developmental opportunities and imperatives • Regional economic, political and economic instability adding to more migration into the city. • Poverty and unemployment • The increasing interest rates • The growing cost of living • The impact of Globalisation To formulate a broad over-arching human capital development • High levels of illiteracy as well as the low levels of Grade 12 pass rates • The non-existence of an institution of excellence (Provincial University/ies)‏ • TB, HIV and AIDS and other dreaded diseases • Safety and security

17. Case for change (continued…)‏ The Organizational Design Framework

18. Risk Management • Stakeholder Consultation accordingly (IGR, etc)‏ • Funding requirements mobilization • Skilled personnel employment • Clear communication channels development • Diligent monitoring & evaluation of governance, social development and economic growth • Establish an effective strategic management team

19. Risk Management Risk Possibility Mitigation Responsibility Breakdown in Corporate Governance Structures • Clarifying roles and responsibilities of the Political and Administrative office • Executive Mayor • SMT • PMU Municipality receiving further Disclaimer Reports • Updating of all policies and procedures • Implementation of GAMAP/ GRAP • SMT • PMU • CFO A further diminishing of the human resources capacity Loss of revenue generation capabilities • Capacitation of the Technical Department • MM and CFO • SMT Mbombela missing the Millenium Developmental Goals Implementation of a well-defined Strategy and Vision • Executive Mayor • SMT Loss of 2010 FIFA World Cup Host Status • Compilation of a focused and well-defined Master Plan • Implementation of an Institutional Coordination structure • 2010 Coordination office • SMT • PMU

20. Roadmap on the IDP (continued…)‏ Way Forward

21. Roadmap (continued…)‏ Narrative Summary Objectively Verifiable Indicator Means of Verification Important Assumptions Outcomes Overall Goal: Develop a viable municipality that achieves its obligations to the all stakeholders whilst building a modern African City of Excellence in line with IDP. • Ability of the municipality to achieve its IDP objectives and service delivery priorities. • Strong Human Capital & Community Development, Good governance & Integrated economic & Socio-economic growth High levels of quality service, integrated planning & strategies The political and economic climate remain stable A well governed institution with excellence in all its obligations to all its stakeholders Project Purpose: To enhance the ability of the municipality to improve its operational and service delivery standards • Batho Pele Initiatives • Service excellence programmes • Performance appraisal & incentive • Municipal council & mayoral committees • Provincial & national Imbizo • Programme & Project report • Customer satisfaction surveys The turnaround strategy is implemented in its entirety with adequate budget. Bulk infrastructure developed for various development including the Hazyview & Maputo development Corridor • Log Frame

22. Roadmap (continued…)‏ Narrative Summary Objectively Verifiable Indicator Means of Verification Important Assumptions Outcomes • Activities to Outputs: • Institutional appraisal & Review for good governance & institutional structures and effective policies. • The critical path to ensure integrated development and continuity as the municipality was under administration • Improved communications & governance strategy • Clearly appraised institutional framework and policies within 2 months • Improved institutional framework & organisational structure by September • Operational process review and re-engineering • Appointment of mayoral committee & various additional support structure by the executive mayor in August • Terms of a communications company finalised by end of August • Institutional review report • New organisational Structure • Operational review report Cooperation and support from stakeholders • Governance Policies & organisational Structure adopted and implemented • Critical vacancies filled and mayoral committee appointed • A well informed and functioning Performance Measurement & Management system • Supply Chain Management restructured • Turnaround strategy development & Implementation Planning to ensure that the municipality is restored to being amongst the best performing municipality in SA An integrated municipal turnaround strategy developed, with clear objective, milestones, timeframes and clearly defined responsibilities by 29 August 2008 • Implementation plan document • Roles and responsibilities allocation Political and top management buy-in of the strategy • The turnaround strategy Developed and circulated with key stakeholders including Provincial and national governments

23. Roadmap (continued…)‏ Narrative Summary Objectively Verifiable Indicator Means of Verification Important Assumptions Outcomes • Change management interventions, evaluation & monitoring An effective monitoring & evaluation framework in place by 29 August 2008 • Project & programme implementation reports • Evaluation reports by the executive Mayor As long as there is backing of the strategy by the acting Municipal Manager and other stakeholders • Turnaround projects implemented based on 2010 as a catalyst to the overall goal Enhance the delivery of basic services and infrastructure development initiatives to restore the confidence of the community on the municipality • Improved integrated service delivery systems during mid-term review. • Reduction of service delivery backlogs within six months • Departmental & Cluster reports • Independent & Internal Evaluation reports There is continued political stability • Transport Infrastructure improved • Hazyview Bulk Infrastructure provided • Indigent communities access improved on FBE and water Build a sound and legally compliant Financial Management system with enhanced viability • Capacity building of the finance department and filling of vacant post • Review of the Supply Chain Management • SCM policy review & development • Municipal financial appraisal • Enhanced revenue management systems for improved accountability • Budget finalised & funding secured (Government, DBSA, etc)‏ • Corporate services reports • Sectoral & divisional reports • Financial reports • Credit approval letters secured • Improved Revenue generation capacity and management thereof. • Implementation of energy efficiency initiatives. • Effective Supply Chain division in place with full accountability • Institutional credit rating ascertained and financial status in line with (GAMAP & GRAP)

24. Roadmap (continued…)‏ Narrative Summary Objectively Verifiable Indicator Means of Verification Important Assumptions Outcomes Capacity Building for strategic political leadership and coordinating structures to ensure that they are able to manage change accordingly and effectively • Councillors & top management capacity building by the end of September Corporate services reports • Councillors & various committees trained in governance, Finances and management issues Build a strong and sustainable Local & Regional Economy with the 2010 project as an immediate catalyst to the growth of the economy • Socio-economic study to provide baseline information for adequate planning by end of October • Economic development strategy reviewed by November to include SMME development initiatives • 2010 master plan & implementation plan completed by end of August • 2010 project capacitated & resourced (finance & HR) • Tourism & marketing strategy compiled by end of October • Review the process for the establishment of an Economic Development agency • Twinning partnerships established within the country and the SADC region by end of 2008 • Strategy review report • 2010 monthly reports • Various reports & strategies compiled Provided that there is a common understanding between state organs, parastatals and private sector for mutual development of the regional economy • LED strategy reviewed and aligned to the Turnaround strategy and the 2010 economic growth opportunity • Tourism & communication strategy developed and implemented to stimulate economic growth and municipality re-profiling. • Partnership strengthened with Mozambique, Swaziland and Durban to with projects in Transport and Tourism

25. Roadmap (continued…)‏ Narrative Summary Objectively Verifiable Indicator Means of Verification Important Assumptions Outcomes Formulate a broad over-arching human capital development strategy towards building an African city of excellence based on Ubuntu and reconnecting with the source • The following issues have to be addressed before the end of the 2008/2009 financial year: • Improvement of metric results • Moral regeneration initiatives • Youth Development Strategy • Integrated rural Development Strategy • Urban Renewal Strategy • Social Security & Poverty Alleviation Strategy • National Youth Service (Mbombela Implementation Plan) • EPWP (Mbombela Implementation Plan) • Indigent Policy and Management strategy • Sports & Recreation Development Strategy • Arts, Culture & Heritage Management Plan • International & Cross-Border Peace & Friendship Initiatives A framework developed for the social cluster with an integrated approach on implementation • Community development plans being implemented • Mbombela Economic Development agency being established • Focus group capacity building initiatives established with tangible PPP projects • Urban renewal projects budgeted for in the 2009/2010 budget • Cross broader skills exchange programmes facilitated

26. Institutional Coordination