In an environment where inaction and low rates of expenditure improve chances for positive audit findings, we see many institutions in the public sector returning funds unspent and falling short of service delivery targets while scoring clean audits.
The MBDA (Mandela Bay Development Agency) was not immune to this tendency for many years. The entity would achieve the highest levels of audit outcomes yet fall behind on service delivery targets.
Unqualified audits are in themselves not an indicator of performance but give an account of the level of controls, governance and compliance with applicable laws and regulations.
The established performance framework in local government is the true indicator of service delivery when applied correctly.
Institutions such as the MBDA are required to account for budget allocation against performance targets as agreed to with the parent municipality.
In the case of the MBDA, the parent municipality has a robust system of checks and balances encoded in the service delivery agreement (SDA).
According to the SDA, the entity must provide its institutional scorecard to the Nelson Mandela Bay municipality, as well as the chief executive’s performance agreement, for monitoring.
Through this SDA requirement, the MBDA must, on a quarterly basis, submit performance reports to the municipality until the end of the financial year.
In August, in line with sections 126(2) and 126(3) of the Municipal Finance Management Act, the accounting officer of a municipal entity must prepare the annual financial statements and, within two months after the end of the financial year to which those statements relate, submit the statements to the parent municipality and the auditor-general for auditing.
On August 30, I submitted reports showing historic performance achievements never seen before at the MBDA.
For the first time since establishment, the entity achieved 81% overall performance supported by strong financial performance with capital expenditure at 85%.
To put this into context, the highest recorded KPI performance of the entity is 73% in 2022 with 63% capex.
For context, 18 of the 21 key performance indicators are all classified under economic development while three are financial. The MBDA only missed one, partially achieved two, successfully achieved 11 and overachieved on four.
The only target not achieved related to progress at the Moore Dyke sports complex.
The issues around that project are complex. They involve a dispute between the principal consultant and the main contractor which ultimately led to contract cancellation, leaving the entity to pursue alternative modalities to take this project forward.
We are well on our way to getting Moore Dyke moving again as it forms part of our 2025/2026 business plan.
One of the shining stars in the performance record of the MBDA in the 2024/2025 financial year is the record-breaking revenue generated at the Nelson Mandela Bay Stadium, the R20m far exceeding the R14m target set by the municipality.
To exceed that target, the stadium ensured a bumper calendar of events, major cup semifinals and tournaments, while local and top-flight rugby returned to the Bay.
Besides bowl events, the investment in upgrading event venues has attracted additional non-bowl events, including some of the most memorable G20 events and conferences.
In Kariega, the MBDA-operated Science and Technology Centre has once again proven to be a viable alternative and much-needed resource to support STEMI subjects teaching in the region.
More than 112 programmes were undertaken by the STC.
When you consider that many of the feeder schools which make use of this facility are from previously disadvantaged neighbourhoods, you start to appreciate that thousands of young lives have been impacted by this facility.
The improvement in matric results and general uptick in education outcomes is surely correlated with some of the 112 activities at the STC.
From a legacy perspective, the MBDA has ensured that the precincts it manages are now connected through an extensive fibre network that supports crime-prevention initiatives.
The rollout of hi-tech security initiatives as seen along the Baakens Valley and the stadium precincts go a long way in supporting crime detection and investigations.
Ensuring that the precincts are safe and clean is a primary driver for attracting and retaining business activity in the CBDs.
Though still some way to a perfect solution, the extended cleaning programme around the three precincts is also making a significant contribution to boosting business confidence around the stadium and the two CBDs.
This historic performance of 81% comes on the back of an intentional and robust organisational review programme.
The improvement has been made possible by the attention placed in filling key positions, developing enabling policies and a dedicated focus on project management.
Coupled with capacitation has been the drive on accountability and consequence management without hesitation.
Such bold actions have not gone without opposition, but management’s resolve has ensured that corrective actions are applied consistently across the board.
With all the systems improvements, the MBDA continues to offer an attractive employee value proposition, maintaining low vacancy rates and investing in building a high-performance culture through investment in training and leadership development.
The 81% achievement of 2024/2025 would not have been possible without the support of the board and the dedicated staff at all three offices.
We now look ahead to the AG audit to cement these results and are trusting for improved audit outcomes.
- Anele Qaba is CEO of the MBDA
The Herald
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