ENTITY OF MANGAUNG METROPOLITAN MUNICPALITY …

1 ENTITY OF. MANGAUNG . METROPOLITAN . MUNICPALITY . CENTLEC (SOC) LTD. REG. NO: 2003/011612/30. MID-YEAR PERFORMANCE REPORT. 01 July 2017 to 31 December 2017. Registered name of the public ENTITY CENTLEC (SOC) LTD. Company registration number 2003/011612/30. Country of incorporation and domicile South Africa Nature of business and principal activities Electricity distribution Chief Executive Officer (CEO) Mr. Mgoqi Chief Finance Officer (CFO) Mr. Ramulondi Chief Operations Officer (COO) Mr. Kritzinger Directors Mr. N. Mokhesi (Chairperson). Ms. Myeni (Deputy Chairperson). Mr. Moroka Mr. Choeu Ms. Uwah Mr.

2 Mohale Registered office College Square Telkom Building Bloemfontein 9301. Business address 195 Nelson Mandela Drive College Square Telkom Building Bloemfontein 9301. Postal address Private Bag X14. Brandhof 9324. Contact telephone numbers +27(51) 412 2613. E-mail address Website address Controlling ENTITY MANGAUNG METROPOLITAN Municipality Bankers ABSA. To be a reliable energy utility that enables social and economic upliftment . Page 1 of 71. MID-YEAR PERFORMANCE REPORT. 01 July 2017 to 31 December 2017. Auditors Auditor-General of South Africa Company Secretary Mr. Nkaiseng Attorneys EG Cooper Phatshoane Henney Inc.

3 Motaung Attorneys Mthembu & Mahomed Mhlambi Attorneys Ramothello, Raynard & Tsotetsi Inc. Pedzisai Pion Attorneys To be a reliable energy utility that enables social and economic upliftment . Page 2 of 71. MID-YEAR PERFORMANCE REPORT. 01 July 2017 to 31 December 2017. Table of Contents 1 VISION ..4. 2 3 VALUES ..4. 4 EXECUTIVE SUMMARY ..5. Company Profile ..5. Purpose of the Mid-year performance report ..6. High Level Organisational Political Governance: Board of Duties of directors ..9. Statement of Compliance ..10. Board Committees ..10. Audit and Risk Committee ..10. Finance Committee ..11. Human Resources and Remuneration Committee.

4 12. Social Responsibility and Ethics Committee ..12. Information Technology Governance Committee ..13. Engineering Committee ..13. Mid-Year Performance ..14. Vote / Programme 1: Office Of The Chief Executive Officer ..15. Vote / Programme 3: Human Resource Services ..31. Vote / Programme 4: Vote / Programme 5: Engineering-Wires ..48. Vote / Programme 6: Engineering-Retail ..53. Vote / Programme 7: Compliance & To be a reliable energy utility that enables social and economic upliftment . Page 3 of 71. MID-YEAR PERFORMANCE REPORT. 01 July 2017 to 31 December 2017. 1 VISION. To be a reliable energy utility that enables social and economic upliftment.

5 2 MISSION. To provide optimal service delivery as mandated by the MANGAUNG METROPOLITAN Municipal Council. To strategically manage our operations in an effective, efficient and financially prudent manner, as measured against relevant indicators. To seek the most cost effective and innovative energy solutions in partnership with relevant stakeholders in order to maximise shareholder value. To train, develop, attract and retain a highly skilled workforce and to promote sound relations with organised labour. To ensure a safe and healthy environment for our workforce and the community. To be a socially responsible corporate citizen that is concerned with improving the lives of the community and the environment in which we operate.

6 3 VALUES. To be a reliable energy utility that enables social and economic upliftment . Page 4 of 71. MID-YEAR PERFORMANCE REPORT. 01 July 2017 to 31 December 2017. 4 EXECUTIVE SUMMARY. COMPANY PROFILE. Centlec (State Owned Company) Ltd (Centlec) was established as municipal ENTITY wholly owned by MANGAUNG METROPOLITAN Municipality (MMM) in terms of the Municipal Systems Act, 32 of 2000 and the Companies Act, 71 of 2008. Centlec as the electricity distribution service provider of the MMM, its core function and responsibility is to purchase, distribute and sell electricity within its geographical footprint.

7 The ENTITY is accountable to provide network services to all its customers, which include: Electricity distribution / Energy services;. Construction of electrical networks;. Operation, maintenance and extension of networks; and Metering, pre-payment vending and billing services. To be a reliable energy utility that enables social and economic upliftment . Page 5 of 71. MID-YEAR PERFORMANCE REPORT. 01 July 2017 to 31 December 2017. Purpose of the Mid-year performance report Section 88 (1) the accounting officer of a municipal ENTITY must by 20 January of each year-- (a) assess the performance of the ENTITY during the first half of the financial year taking into account- (i) the monthly statements referred to in section 87 for the first half of the financial year and the targets set in the service delivery, business plan or other agreement with the ENTITY 's parent municipality: and (i i ) the ENTITY 's annual report for the past year and progress on resolving problems identified in the annual report.

8 And (b) submit a report on such assessment to- (i) the board of directors of the ENTITY : and (i i ) the parent municipality of the ENTITY . Centlec (SOC) Ltd presents its mid-year report (1 July 2017 31 December 2017) which is in line with the 2017/18 SDBIP approved by the Council of MANGAUNG METROPOLITAN Municipality (MMM) on the 31st May 2017. This report is divided into the following sections that cover all operational functions of the ENTITY in line with the SDBIP, namely;. The Office of the Chief Executive Officer The Office of the Company Secretary The Human Resource Services Finance Engineering Wires Engineering Retail Compliance & Performance To be a reliable energy utility that enables social and economic upliftment.

9 Page 6 of 71. MID-YEAR PERFORMANCE REPORT. 01 July 2017 to 31 December 2017. High Level Organisational Structure COO. KRITZINGER. CFO. RAMULONDI. CEO. MGOQI. ACTING EM: ENGINEERING WIRES. VACANT. BOARD EM: ENGINEERING. RETAIL. VACANT. COMPANY. SECRETARY. NKAISENG. EM: HR. MOLEFE. To be a reliable energy utility that enables social and economic upliftment . Page 7 of 71. MID-YEAR PERFORMANCE REPORT. 01 July 2017 to 31 December 2017. Political Governance: Board of Directors The Parent Municipality appointed eight (8) Board of Directors on the 1st July 2016 which will serve for three (3) years in office.

10 Two board members resigned on the 31 October 2016 and 16 May 2017 respectively. Currently the Board is left with six (six) members. Initials And Surname Designation Race Gender N. Mokhesi Chairperson African Male Myeni Deputy Chairperson African Female Moroka Non-Executive Director African Male Choeu Non-Executive Director African Male MID-TERM REPORT. 01 JULY 2017 31 DECEMBER 2017. Initials And Surname Designation Race Gender Uwah Non-Executive Director Coloured Female Mohale Non-Executive Director African Male The Board has met regularly and retains full control of the company. The Board remains accountable to MMM (the municipal ENTITY 's sole shareholder) and its stakeholders, the citizens of MANGAUNG and the other areas where electricity is distributed.