Page 182 - UGU Dstrct Mun IDP Report '21-22

High Printing and Copying Costs
The municipality is still heavily reliant on paper system for meetings, recording keeping, etc. This is very costly for the municipality there is high level of wastage. Departments not taking responsibility with regards to cost cutting, e.g., printing, copies
Lack of Human Resource Capacity
There is a misplacement of skills in the Budget and Treasury Office. Furthermore, there is a challenge of skills balance within the LED Unit and skills transfer, training, etc is required.
Delegations of authorities of Ugu are not clear
Delegation of authorities ensure efficiency, effectiveness, and accountability. The current delegations of authorities for the municipality are not clear and as a result there is no accountability.
Local Economic Development
Limited Scope of LED
The National LED Framework (2014-2019) as “a process involving the formation of new institutions, the development of alternative industries, the improvement of the capacity of existing employers to produce better products, the transfer of knowledge, the identification of new markets and the nurturing of new firms and enterprises.”
The framework further defines LED as “the process by which public, business and nongovernmental sector partners work collectively to create better conditions for economic growth and employment generation with the objective of building up an economic capacity of a local area to improve its economic future and the quality of life for all.”
The Ugu District Municipality seems to be focusing on the second definition and the task of the first definition are given to the Development Agency. There is a need to clarify the roles and responsibility of both the LED Unit and the Development Agency to ensure that the LED scope is widened.
Duplication of Resources and Efforts between Local and District LED Units
LED is a shared responsibility between all the three spheres of government. The district needs to play a coordinating role amongst the four local to ensure effective and effective use of the limited resources. There has been growing unhealthy competition between the district and the locals in the implementation of LED. This has led to duplication of efforts and uneven implementation of LED across the district which has a negative effect on the community. Furthermore, this hinders the district in playing it coordinative role.
High Levels of poverty, inequality and unemployment
The triple threat challenge is not just an Ugu challenge, but it is nationwide. The South African government as captured in the National Development Plan, is committed to eliminating poverty, inequality and unemployment. The Ugu District Municipality is also committed to eliminating poverty, inequality, and unemployment. The District needs to develop clear strategies and programmes to address the triple threat challenge.
Unfavourable LED Environment
Creating favourable conditions for the growth and development of business enterprises by reducing risk and making it more foreseeable by:
• Increasing confidence levels of the public and private sector investors;
• Unlocking under-utilised resources;
• Reducing the establishment and operating costs of businesses;
• Improving infrastructure; and
• Facilitating the provision of trained labour.
High mortality rates of SMMEs and Cooperatives have been recorded because of unfavourable LED environment. The District and the Local Municipalities needs to explore ways of creating an enabling environment.
Poor Resourcing of LED
LED is often not viewed as a core by the municipality and thus, has been poorly resourced especially financially. Although there has been some improvement over the years there is a long way to go. More awareness campaigns need to be done to give LED the recognition it requires.
Unclear LED Mandate
There is a lack of common understanding of LED and what it should do. Furthermore, the district and its family of local municipalities does not one clear mandate when it comes to LED.
Municipal Financial Viability and Management
Budget management and financial reporting
The norm for Fruitless and Wasteful Expenditure as a percentage of Total Operating Expenditure ratio is 0%. The current Ugu District Municipality ratio is more than 0%. With regards to financial reporting, there is some level of inaccurate reporting. There is a need of Ugu District Municipality to investigate how mSCOA affects budgeting processes and change financial reporting to be in line with mSCOA standards.
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