2018/2019 has been on all accounts a major milestone and turnaround year for the Nelson Mandela Bay Municipality (NMBM) owned entity, the Mandela Bay Development Agency (MBDA).
“The financial year which started on July 1st in 2018 and ended on June 30th, 2019, the period marked the consolidation and implementation of key strategic interventions that the Board had set out to achieve, it is the culmination of two years of intense refocusing,” said Board Chairperson, Mputumi Phil Goduka.
He said that in 2016, before the appointment of this current Board, the MBDA was already going through a very difficult time with staff morale at an all-time low.
“The issues then have been widely reported on, but suffice to say, this current Board was determined to turn the ship around and place the MBDA on a path of success and improved service delivery outcomes.”
Goduka said that returning the organisation to stability was at the top of the Board’s agenda and this, at the beginning, required a lot more regular interaction with Management and all key staff to build confidence and craft a new vision for the 14-year old entity.
New vision at Mandela Bay Development Agency
“By July 2018, the MBDA had adopted a new vision, mission and strategic objectives, developed collaboratively with all staff and adopted by the Board,” he described.
“A Five-Year Strategic Plan with an Annual Business Plan was approved and put to implementation.
“Integral to this drive was the need to craft a different delivery vehicle in terms of structure, for the MBDA to fulfil the new objectives, it needed to reinvent itself.
“This new organisational structure came into being at the start of the financial year. Most importantly, it was the recognition that for us to excel and elevate service delivery, we needed a lean and strategic management core team with an agile approach to project execution, which became a semi-matrix structure.”
Goduka said that to give effect to approach, a new cloud-based Performance Management System was developed to track and monitor performance real time, result of which are now evident.
Grant funding from NMB
“Another significant take out and major focus area for the MBDA is the need to supplement the grant funding we are receiving from the NMBM. This means that the MBDA must strengthen its capacity and ability to generate additional funding through innovative revenue generating projects and through special projects funding mechanisms,” he described.
“This possibility is already catered for in the current Mandate document of the Agency where the MBDA retains revenues generated through leases and facility rentals, but more can be achieved.
“The non-payment of the quarterly grant funding of the MBDA for the 4th quarter of the 2018/19 financial year, amounting to nearly R28-million negatively affected the MBDA’s ability to meet financial obligations as and when they were due.
“This presented a significant threat to operations and attainment of Performance targets for the period we are reporting on. The non-payment of grant funding extended to the first half of the 2019/2020 financial year. “
Goduka added that the resolution by Council in the first week of December 2019 for the approval of the MBDA Service Delivery Agreement (SDA) means that the grant funding that should have been paid in July 2019 will now be paid in December 2019, six months into the financial year.
“The effects of this delay will soon be realised at mid-term adjustment and no doubt, the delays have the potential to negatively affect the attainment of targets for the 2019/2020 financial year,” he explained.
“In conclusion, the MBDA has wrapped a challenging, but productive year none the less. Considering where we were in July 2018 and the complex transformation we undertook; the Board can be proud of this organisation’s achievements.
“As Board Chairperson and Chief Executive Officer, it gives us great pleasure to announce that through collaboration, commitment and passion for our City, the MBDA is a now a much more fine-tuned, stable and agile institution.”
MBDA Unqualified Audit Outcome
The MBDA has once again obtained an Unqualified Audit Outcome from the Auditor General of South Africa for the 2018/19 period.
“Not only that, the audit outcome is a commendable improvement on 2017/2018 outcomes, which means there were far less matters of emphasis,” Goduka described.
“The leadership of the MBDA appreciates the importance of an unqualified Audit Outcome in terms of the entity’s reputation, cementing the MBDA’s credibility and the opportunities that open for funding.
“To improve audit outcomes whilst improving the achievement of Key Performance Indicator (KPI’s) targets to 69% is even more important for the MBDA.
“We are an entity charged with driving visible and meaningful change in the Bay, so the successful implementation of our mandate is measured against real and tangible outcomes represented by KPI’s.”
Goduka further said that these achievements would not have been possible without the guidance and support of the Shareholder Representatives from the Municipality, dedication and commitment from Board members and the absolute resilience and professionalism from all our MBDA staff working across three sites, Tramways, Uitenhage Science and Technology Centre and Nelson Mandela Bay Stadium.
“The Board also notes the recent resolutions by the NMBM Council for the approval of the MBDA Service Delivery Agreement as well as the extension of the mandate to continue with the management of the Nelson Mandela Bay Stadium,” he noted.
“Finally, we wish all our stakeholders, residents and visitors, a safe and happy festive season and look forward to working well together in 2020 and beyond.”