Steve Tshwete Local Municipality

A shining example of good governance

For the past 20 years, Steve Tshwete Local Municipality (STLM) has been a glaring example of good governance and excellence.

Amidst rampant corruption and the collapse of many municipalities, the municipality is currently ranking well in good governance comparisons, and for the past five years it has been awarded clean audits.

In a recently tabled report by AuditorGeneral (AG) Tsakani Maluleke on the local government audit outcomes for the 2019-20 financial year, STLM is among 27 municipalities out of 257 municipalities across the country that received a clean audit.

The audit focused on four areas, namely the annual financial statements, audit of performance objectives, compliance and internal controls, and was conducted based on the international auditing standards for the year under review.

This report makes STLM the best performing municipality in the implementation of Local Economic Development (LED).

STLM Municipal Manager, Advocate Bheki Khenisa, says that the continuous clean governance is a result of collaboration and teamwork of all members of STLM “whose common thrust is to serve our people and ensure that no one is left behind when it comes to the delivery of all government services”.

He also attributes this success to the municipality’s consistent commitment to accountability, which comprises efficiency, integrity, transparent operations, performance in service delivery and administrative excellence. Adv. Khenisa says that bagging another clean audit manifests that the municipality is on the right track of serving the residents of STLM.

He shares that this achievement is a result of working together with all municipal stakeholders, comprising of council members, staff members, residents and business owners, who all contributed to the success of the municipality.

The Municipal Manager explained that good payment rates by ratepayers and proper internal controls have helped the municipality to render “the highest quality of continued service delivery for the residents of the municipality”.

Conducive environment for business

“We pride ourselves in proper and effective planning, steering, implementation and monitoring capacities. Our structures are effective, and our operations are rational and transparent. For years, the municipality has facilitated a conducive environment for business through good governance and excellent service delivery,” says Adv. Khenisa.

Unlike many South African municipalities facing revenue collection challenges, Adv. Khenisa says STLM has been enjoying a more than 95% payment rate since 2005. This is despite the financial crisis brought about by the Covid-19 pandemic.

He explains that the stable revenue stream has built a financially sound and sustainable municipality well-positioned for thriving business activities for this Category B municipality. This has also contributed to significant improvements in access to services for the municipality’s dwellers.

The municipality is manned by 58 councillors, of whom 29 are ward representatives and 29 proportional representatives, the Executive Mayor is assisted by six members of the Mayoral Committee, the Speaker, the Chief Whip and the Municipal Manager, who heads the administration.

Executive Mayor: Cllr. Diphala Motsepe

Ideal location

Ideally situated less than 150km from Pretoria and 170km from the country’s economic giant Johannesburg, the municipality is home to South Africa’s only stainless steel manufacturer, Columbus Stainless, which provides more than 2 000 job opportunities. It also has strong agricultural components and is situated in South Africa’s maize triangle. The municipality’s economy is abundantly supported by a mining and industrial income base.

Businesses in the area have benefitted immensely from the municipality’s world-class and well-maintained infrastructure and its proximity to economic hubs. The municipality’s location along the N4 makes it possible and convenient for businesses to easily access Mozambique and the port of Richards Bay.

The municipality has intensified its support to businesses by providing excellent service delivery. The businesses in the area enjoy an extensive well-constructed and regularly maintained road network, a landing space that can accommodate small and large aircraft and the highest level of water management, certified with Blue Drop Status. With three Eskom Power Stations located within the municipal area and various mines supplying necessary coal, businesses and residents benefit from a stable electricity supply.

Consistency is key

Adv. Khenisa says the secret to the municipality’s success lies in consistency, “We pride ourselves on consistent administrative excellence and transparent operations. These principles lie at the heart of good governance and sustainability. We are very consistent with good governance to the people we serve. We believe they are the guardians of the public’s interest, and our duty is to provide them with an attractive environment in which to live and work. We also believe in strong partnerships with them as we believe they have various roles and responsibilities to play in the municipality. We see members of the public as an active force in helping design and create effective public services. We ensure that there is appropriate communication to keep them well informed, and we actively involve them in decision-making processes. This demonstrates that their interests are in good hands,” he explains.

Staff development a driving force behind success

Adv. Khenisa reveals that the municipality also puts a lot of value in the development of staff in order to deliver quality services to the residents, “Our staff are service-oriented, and we promote a culture of excellence from the top to lower levels. Everyone is encouraged to set the bar high. We have stringent internal controls, self-assessment tools and monitoring mechanisms, such as performance measures and a code of ethics. We have also adopted a variety of protocols and procedures to minimise the risk of misstepping and to promote the public’s trust and confidence in our governance practices,” he said.

Clean governance spin-offs

The success of the municipality has seen it scooping several kudos, including a Municipality of the Year Award at the Govan Mbeki Human Settlement Awards.

These achievements have attracted strategic partners for the municipality that have, in turn, been beneficial for the residents and local businesses. Recently, STLM, together with the National Empowerment Fund (NEF), set aside R50 million towards the Enterprise and Supplier Development (ESD) Fund to benefit black-owned and managed SMMEs situated in the municipality. The municipality contributed R20 million, with the NEF committing R30 million for qualifying transactions on a 40:60 ratio. The fund will exclusively benefit businesses located in the municipality, have black majority ownership, have black-women participation and are commercially sustainable, among other things.

The municipal area includes Middelburg, Mhluzi, Hendrina, Kwazamokuhle, Rietkuil, Pullenshope, Komati, Presidentsrus, Naledi, Lesedi, Kranspoort, Blinkpan, Koornfontein, Kwamakalane, and Doornkop.

The venture aims to promote SMMEs, township industrialisation and stimulate and diversify economic growth and industries.

“We aim at closing economic gaps that were generated by, amongst others, the Covid-19 pandemic. This initiative will also ensure our vision of becoming the best city in South Africa in service delivery, innovation, good governance and inclusive growth,” said Adv. Khenisa.

Municipal Manager: Bheki Khenisa