Asset Management
 
Moses Maliba
Justice Cele
Thabani Mbele
The rapidly increasing demand for municipal services and the National initiatives for accelerated infrastructure development and maintenance at the local level have increased, and will continue for some time to increase, the scale and value of municipal assets. These assets will require a higher level of expertise and knowledge of asset management and management systems to ensure that the capacity necessary to deliver the required services at the desired standards and efficient levels of costs is achieved. Legislation governing municipalities must ensure improved asset management from an operational and, more importantly, from a financial perspective.

In March 2015 I@ consulting requested the services of ETL (Pty) LTD, through our CEO Mr Moses Maliba, to assist in various asset management assignments which had been secured in different municipalities around South Africa. ETL then had deployed two civil technicians to assist on those projects where I@ Consulting required technical support. Prior to the deployment, the technicians underwent training on various aspects of the Asset Management process, in line with the International Infrastructure Management Manual (IIMM). After the training they were then taken to various sites to conduct assessment of the assets and also verify some of the assets under the supervision of a seasoned Asset Management specialist. The process included conducting site assessments and then capturing the data on the asset register, created by I@ Consulting, which was submitted weekly.
The duties which our technicians were required to perform for I@ were:
• Assess the condition of roads, road furniture and stormwater drainage: When assessing the
   condition of a road they looked at the state of the road; whether it has potholes or cracks or if
   it’s still a new road then we rate it according to a scale were between 1 to 5, 1 being very
   good and 5 being very bad as reflected in Table 1.0.. Pictures and co-ordinates of the road are
   also captured. The technicians also assessed the state of the Road Furniture such as
   road traffic signs, traffic signals, street lights, speed humps, sidewalks etc., where there was
   stormwater infrastructure, a condition assessment was also conducted.
• Assess the condition of water meters: When assessing the condition of water meters the
   technicians checked whether it is still in a good state or if there is any leakage or if the
   visibility of the meter reading is still good then we rate it, take the picture and the co-ordinates.
• Verification of previously assessed assets: While conducting the conditional assessments
   the technicians also revisit assets which were previously assessed in order to verify their
   rating. Should the condition have deteriorated, a new rating is allocated. This ensures that the
   information available to the client is up to date and accurate.
• Data capturing: Post completion of the site work the information gathered is captured onto
   the asset register which also included the uploading of the pictures.
The following Municipalities were assessed as part of the appointment:
The feedback from the client has been positive and ETL has gained significant experience in field of expertise that is becoming more and more important.
The future asset management and financial challenges - including those relating to current value accounting, periodic asset revaluations, alternative depreciation methods, full cost recovery as basis for setting tariffs and fees, capital investment planning and identification of costs of capital and return on investments in municipalities are all important aspects that must be reviewed as reforms are incrementally implemented. The successful implementation of this project is an indication of ETL’s readiness to assist government towards achieving their objectives over the coming years.
• Emfuleni Local Municipality
• Polokwane Municipality
• Buffalo City Metropolitan Municipality
• Thembisile Hani Local Municipality
• Dipaleseng Local Municipality
• Randfontein Municipality
• Mnquma Local Municipality
Oupa Letele
Yolan Naidoo