Madame Speaker
The Premier of KwaZulu-Natal, Honourable Dr. Zweli Mkhize
Members of the Provincial Executive Council
Honourable members of the Provincial Legislature
Amakhosi AseNdlunkulu present
Mayors and councillors of municipalities
Excellencies
Members of the diplomatic corps
Heads of departments
Distinguished guests
Ladies and gentlemen
Senior officials
Members of the media
Citizens of KwaZulu-Natal.
I have the honour to present before this eminent house the budget policy speech for Vote 11, the Department of Cooperative Governance and Traditional Affairs (COGTA). Honourable Chairperson, this budget vote is inspired by our Constitution, which describes us as a nation that is united in diversity.
Ours is a nation that is born from the crucible of sacrifice; a society that has endured so much hardship but looks to the future with so much hope and determination. But more importantly, we are a nation that inspires hope and that has given the world some of the world’s greatest statements. Today we stand tall among the nations of the world, ready to shake the yoke of challenges facing our people and to create a new path of economic prosperity.
Honourable Chairperson, our march to an equal and prosperous society is on the right course. Step by step and brick by brick, the African National Congress-led government is building a new society envisioned by its founding fathers in 1912.
Honourable members, we stand here today in a very important period in the history of our struggle as a nation. It is a year in which we are celebrating the contribution of our forefathers to the creation of a country in which all of us enjoy a gift of human dignity and freedom.
We speak here of the pathfinders of our liberation struggle who, inspired by hope and the nobility of their cause, made the ultimate sacrifice. The centenary of our struggle is indeed an event worth celebrating, for it serves to remind all of us of the journey we have embarked on in order to create a non racial, non sexist, democratic and prosperous society.
We could not have had a better backdrop against which to look at the journey we have traveled over the past 18 years to create a people centred and sustainable system of local governance. Although we have attained our hard-earned freedom and democracy, the after-effects of apartheid still continue to haunt us. His Excellency, President Jacob Zuma, in his State of the Nation Address, quite succinctly identified these ills as the triple challenges which include poverty, inequality and unemployment.
Further, The Honourable Premier bestowed us, in his State of the Province Address, with the mandate to "work together for growth, development and a better future for all". The task of our generation is to continue with our part of the journey, which we have dubbed the "second transition". This constitutes the second phase of our struggle with a clear focus on accelerated social and economic transformation.
Infrastructure Led Growth: CoGTA leading from the front
In today's budget vote, we seek to respond to the injunctions by the President and the Premier to accelerate our government's efforts to create an equal and prosperous society. The generation of our forebears has fulfilled its mission of delivering our emancipation. We cannot betray ours. It is in this sphere of Local Government and Traditional Affairs where the triple ills of poverty, inequality and unemployment manifest themselves in the most glaring manner.
Our President has given the nation a clear directive about the way we are going to conduct development during these economically trying times. The message from the President was again re-affirmed during the State of the Province address by our Premier. In my own understanding, the message simply calls for all of us to accelerate social and economic transformation, using infrastructure led growth as our focal point.
CoGTA, municipalities and institutions of traditional leadership can never be passive when such a call has been made. Local Government has to lead from the front. Indeed, we are fully aware of our responsibility in supporting the national vision, noting that all those projects will be taking place in municipal spaces.
As Morgan and Lynch (2006) put it in the Book titled: "Leading from the front", some of the key practices that need to be the hallmark of ourselves as a ministry and department that leads from the front are to:
- set an inspiring example
- think fast on our feet
- stop making excuses
- take care of our team
- respond without overreacting
- stay cool while dealing with crises
- have the courage to achieve goals.
Indeed, we shall lead from the front.
To this end, we are supporting all our municipalities as they are busy finalising their Integrated Development Plans (IDP) to ensure that key infrastructure and economic development initiatives are clearly accommodated in those IDPs. Entry points for us as local governance sector in realising the implementation of catalytic infrastructure projects of our province.
Durban Dig-out Port: Phase 1: R50bn
Although this initiative will be largely driven by Transnet and other national entities, eThekwini municipality will have a significant role to play. As CoGTA, we are going to ensure that the municipality, together with other relevant provincial authorities, are geared to expedite such an enormous development application. We understand that delays in local government decision-making may invariably affect the project completion date and consequently impede the achievement of our national target.
Inland Port/Hub/Terminals: R2.5 billion+
Municipalities of eThekwini and Mkhambathini will be supported with the implementation of a number of preliminary steps which are required to determine the location, nature and size of the proposed dry inland port. We will need to work as a collective as we know that this exercise requires both hard and soft skills ranging from engineering, transportation to community liaison.
Cornubia: R24 billion
CoGTA will be championing public infrastructure provision during the development of this "new town". We want to see an outcome which shows our citizens being able to work, live and play within a decent area. This development will mark a new dawn in the way we view South African residential landscape.
Dube Trade Aerotropolis: R34.5 billion
Local Economic Development is one of the Key Performance areas of local government. We support the Dube Trade Aerotropolis because we see it as an anchor to the economic growth of our province. Again we will be assisting the municipalities in the vicinity of this Aetropolis with all planning and decision making tools to ensure that there is a speedy delivery of development.
iSimangaliso Wetland Park:
CoGTA has been instrumental in maintaining and promoting a smooth relationship between the Isimangaliso Wetland Park and communities in relation to the Park In Dukuduku alone, we have allocated more than R35-million in the MTEF period and our funding has unlocked an investment of more than R300 million in Public Infrastructure funding.
Vulindlela (Msunduzi) Housing Project: R410 million
CoGTA will be critical in working with the four Amakhosi of Vulindlela and uMsunduzi Municipality. The initiative will require detailed planning for massive infrastructure development. We also anticipate a number of land legal huddles whilst the project unfolds and we will always be alert to address those huddles as they arise. Clearly, Chairperson, Cogta will play an instrumental role in the new growth part for our country. It is local government that will turn these apex projects into tangible and visible deliverables on the ground. It is local government that must facilitate and create the conducive condition for the roll-out of these projects. We are carving ourselves a niche that will help us contribute in changing the KwaZulu-Natal landscape for the better.
These catalytic projects, and many others that we have not mentioned, will help us achieve our vision to re-anchor our municipalities so that they became centres of economic growth. In a highly-competitive global economic environment that we live in today, municipalities should be more that just purveyors of social services such as water and electricity.
They should be engines of economic growth. In this regard, we want all municipalities to use their competitive and comparative economic advantages to stimulate their own local economies. This, therefore, means that local economic development should be at the top of the priorities of all municipalities.
These developments mean a lot for the sustainability of municipalities in terms of revenue and job creation, improved quality of life for all citizens and addressing the backlog in basic services. The more the people are employed; the more they will contribute towards the economic rejuvenation of the area and thus have a multiplier effect in the local economies such as creating jobs and ensuring the sustainability of municipalities.
Reflections of the two years in office: State of KwaZulu-Natal Local Governance
Having nailed to the mast how local government will write its chapter in the national vision of infrastructure led growth, we now turn our focus to other key strategic projects that are the primary focus of this budget. It is proper chairperson that we should begin by giving an account for the implementation of the commitments we made in our previous budget speeches.
Chairperson the Greek Philosopher Heraclitus argues that justice emerges from the strife of the opposites, and Hegel reminds us that growth is only achievable through struggle. The law of nature also teaches us that there can be no birth and growth without birth and growing pain. So the many tensions which we witness in our daily lives are indicative of the fact that a new order is being born and the older one is passing away.
Our system of Local Governance is part of the new order of hope that was brought about by the democratic dispensation. After two and half years in the Department of Cooperative Governance and Traditional Affairs, I think it is appropriate to pause and reflect on where we once were, against where we are now, and where we are headed. We inherited a system of Local Governance fraught with a number of systemic challenges and that was increasingly becoming a source of frustration for its communities. Demonstrations over service delivery were on the upsurge.
Poor compliance and respect for the legislative prescripts governing local government seemed like a dream in some municipalities. Clean Audits were a rarity rather the norm. Indeed, in some of our municipalities the people’s confidence had been eroded and was almost non-existent.
The culture of impunity was reigning supreme. It was a system characterised by divergent approaches to our collective goals between the leadership of our people, particularly democratically elected and traditional leadership. Building on the sound legacy created by my predecessors, we rose to the challenge by adopting a stick and carrot approach.
We isolated the serial offenders, we threw the book at them and this helped in refocusing our municipalities to the key issues of service delivery. To date we are a leading province in posting positive audit-outcomes with five of our municipalities receiving clean audits in the recent audit period. We made a strong endeavour to create a harmonious relationship between the leadership structures of our people so that all can contribute their wisdom and knowledge in improving the lives of the people.
We took a stand against corruption and other ills that sought to undermine the march of our local government system to a system of hope for a better life for all our people. We have put in place a range of structures, policies, and procedures which enhance governance through improved oversight and decision making.
A recent television news item indicated the number of service delivery protests country wide. Our province reflected only three (3) protests for this year which was by far the least in any province. Whilst one (1) service delivery protest is one (1) too many, we feel that this means that we must be doing something right in KwaZulu Natal.
We would like to attribute this to the fact that our municipalities spend their allocated funding on service delivery, do not return unspent funds to the fiscus and that communities are kept informed. These are the achievements often overlooked because they are not as tangible as providing houses and water.
However they have helped in improving the image of Local Government in our province which has necessitated as important a stakeholder as the Auditor-General to shower our province with accolades and recognise our municipalities as the best governed in the country. Of, course this is a collective achievement with stakeholders in the sphere but we still face growth challenges in certain areas.
As we deliver this budget vote, objective measurement will show that we have either met or exceeded our targets. We have through our support interventions, facilitated improvement in the delivery of infrastructure to historically disadvantaged communities.
- For the years preceding 2009, the achieved delivery of water ranged between 25 000 to 28 000 households, per annum. In 2010/11 some 53 000 households were served with water.
- Sanitation delivery jumped from 18 000 households per annum to 44 000 households
- Electricity form 18 000 households to 26 000.
Provincial service delivery picture
- As at 31 March 2012, approximately 83.47% of households in the province have access to potable water. "The journey continues" extrapolating unit costs for household water provision for both bulk and distribution, and given the still existing backlog (approximately 408 000 households), 100% is only achievable by 2021 / 2022 at a cost of R 25.178 billion.
- In respect of sanitation, as at 31 March 2012, 80.36% of households in the Province have a basic sanitation facility. Again, extrapolating unit costs for household basic sanitation, and given the still existing backlog (at least approximately 482 000 households), 100% is only achievable beyond 2020 (± 2023) at a cost of R 4.988 billion.
- In respect of electricity, as at 31 March 2012, 76.69 % of households in the province have access to electricity. Extrapolating unit costs for household electricity provision for both bulk and distribution, and given the still existing backlog (approximately 557 000 households), 100% is only achievable by 2022 at a cost of R9.435 billion.
Municipal Infrastructure Grant (MIG)
Municipalities expended 90,56 % of the 2010/11 allocation of R2,161 billion. This was anticipated due to re-prioritisation associated with local government elections. Improvement in 2011/12 is anticipated.We have facilitated a roll-over of approximately R 136 million of unspent funds, ensuring that these moneys are not lost to service delivery in the province. Intense support is being provided to the municipalities concerned, in utilisation of these funds.
Electricity "islands"
In line with the commitment we made in our previous budget speech, the department has, in collaboration with Eskom and with the Department of Energy, developed a strategy to electrify these "islands" on a priority basis. First priority has been given to those areas which have sufficient bulk capacity in their proximity. Where the bulk capacity is inadequate at present, the provision of additional bulk capacity has been prioritized, before the individual household connections will be addressed.
Funds to the value of R77 million by the Department of Energy and R50 million by Eskom have been committed at present. This project is anticipated to reach completion by 2014. Eskom has already started to increase its network capacity in identified areas to carry the additional load. Our department also chairs the water and energy committees in the province and we are vigorously facilitating redress to this senseless injustice visited on some of our people.
Umzimkhulu
The Umzimkhulu Special Project was initiated In the financial year 2006/07 as part of facilitating the smooth incorporation of uMzimkhulu into KwaZulu-Natal. An amount of R 38 357 000 was transferred to Sisonke District Municipality for the refurbishment of existing infrastructure projects which were no longer beneficial to the community as intended. The allocation was utilized to conduct assessments of the state of infrastructure and its ability to provide sustainable municipal services to communities within the Umzimkhulu municipal area.
The assessments included backlog studies on water sanitation & electricity, groundwater assessments, bucket system eradication, assessment and completion 11 km of rural access road and the completion of Gugwini & Rietvlei water schemes.
In the financial years 2007-2011 a further R151 639 476 was allocated to Sisonke District Municipality to implement newly identified projects from the assessment reports, including new water services offices, refurbishment of 49 water schemes, electricity distribution to rural households and proper planning for the completion of incomplete projects inherited from Alfred Nzo Municipality in Eastern Cape. The new projects were identified by the municipality particularly to support incomplete housing projects without bulk infrastructure inherited from Alfred Nzo Municipality. These are Riverside & Ibisi.
During the same period an amount of R44 997 524.00 was allocated to Umzimkhulu Local Municipality for capacity building and the financial management assistance programme, which included service related operational projects / purchases namely completion of the office building, refuse truck, refuse bins, refuse skips and a skip trailer. Assessment of the CBD requirements was conducted to identify the following projects which were also implemented: Improvement of access roads in the urban area, and the building of a new fire station with vehicles and equipment.
Indeed since incorporation to this province uMzimkhulu has been turned around. The investment that our government has made to date is R178 670 453.51 which equates to 94 % of the total multi-year allocation of R189 996 476.
Massification
R61 million was transferred to twelve municipalities in the 2010/11 financial year. All projects are being implemented by municipalities. The funds are primarily allocated to water projects, as follows:
Eleven (11) bulk water projects, 29 water distribution projects, 5 water and sanitation projects in support of housing development, a rain water harvesting project and 2 water tankering support projects. Approximately 6, 000 households are being provided with water and sanitation through current projects (2010 / 2011, 2011/12 and 2012/13 MTEF). At current funding levels 120 000 citizens (equates to some 26 000 households) will benefit from massification over the current Medium Term Expenditure Framework (MTEF).
Job creation through Infrastructure
Substantial employment opportunities have been created through the Municipal Infrastructure Grant (MIG) and Massification programmes. As at the end June 2011 (2010/11 MIG year) a total of 125 111 employment opportunities were created on MIG projects. This does not imply that these are permanent jobs much of this is temporary employment on construction projects but they go a long way in promoting skills transfer and poverty alleviation. The anticipated job opportunities, subject to year-end verification, in the new financial year, are expected to be approximately 74 106. The massification programme alone has created 3 900 job opportunities in the current financial year.
Special interventions (Umkhanyakude)
Due to lack of technical capacity, hospitals, clinics and schools experienced severe water shortage. Accordingly, intense support is being provided where a special intervention programme is underway.
The following are being addressed :
(a) Borehole refurbishment
(b) Re-instatement / refurbishment of dysfunctional water schemes
(c) Operation and maintenance of water supply
(d) Technical skills
(e) New water infrastructure
(f) Electricity programme
(g) Water tanker repairs
We record the following progress :
- The former CEO of Umgeni Water has been appointed and has been operational since the beginning of January, to provide management capacity for the water business.
- The department facilitated an agreement with Mhlathuze Water, who is providing support. Since the introduction of the intervention strategies, Water is now provided to all the affected hospitals. uMhlathuze water is currently busy on site, with refurbishment of boreholes. Priority is the Ingwavuma area. At least 32 of the 46 boreholes are scheduled for re-furbishment, subject to yield tests to confirm sustainability of the boreholes.
- In terms of the restoration of dysfunctional schemes, approximately 60 water schemes (localized) were identified as dysfunctional in some respect and which require re-instatement refurbishment. Approximately 50% of dysfunctional schemes (30 number) have been restored. The target is 95% by June. The highest priority area is Mpukunyoni (62 000 households) where there is now about 60% water coverage as a result of the restoration programme.
Uthukela
Lack of capacity in the technical department gave rise to sporadic water provision. Evident maladministration and non accountability compromised service delivery. Accordingly: A specific intervention / support programme has been initiated in Uthukela district. (February 2012)
The following "programmes" issues have been identified for priority attention:
(a) Water loss
(b) Re-furbishment / upgrade of the Ezakheni water treat ment works
(c) Water provision: Umtshezi wards 5 & 7
(d) Upgrading of the Wagendrift pump station (on which Umtshezi / Estcort is dependant)
(e) Improvement in MIG performance
(f) System reliability (water) and reliability of supply
Subsequently, two more serious issues have been identified, viz:
- The necessary upgrades to the Spioenkop pipeline, feeding into Emnambithi
- The repairs / refurbishment to the sewer network in Emnambithi / Ladysmith, which has been affecting the Transnet railway line.
We record the following progress:
- Technical expertise for people to deal with Water issues have been deployed
- The new technical director is operational
UThungulu Water Intervention
UThungulu District Municipality experienced problems with the constant supply of water. An amount to the tune of R4.7million was made available by COGTA to assist UThungulu municipality with an interim solution of providing Water Tankers. The areas of Ntambanana, Mbonambi and Nkandla benefitted immensely from this intervention. We are working jointly with the municipalities to find long term solutions to this challenge. The people expect all ANC led local councils to be solution oriented.
Universal Access Planning
The department is investing in the development of Universal Access Plans for each of the 14 Water Service authority areas. These plans will consolidate existing planning and information available from Water Services Development Plans, existing master plans and the DWA reconciliation studies, inter alia. The objectives are a status quo assessment water & sanitation, an updated assessment of service delivery backlogs, an analysis of water demand vs availability and the development of proposals, with costs, for water schemes and source of supply.
Bulk water
A significant investment in bulk water is necessary, if we are to permit universal access and support economic growth, particularly in corridors. In close cooperation with the Department of Water Affairs, the following projects have been prioritised, and efforts are underway to find the required capital:
- Lower Thukela Water Scheme (bulk water ex Tugela river, treatment and transfer south to Ilembe / eThekwini, plus raising of Hazelmere dam (R1,9 billion) (application to Water Affairs)
- Ngagane water treatment works and transfer – augment raw water supply to Dannhauser, Endumeni, Nqutu (R1,2 billion) (application to National Treasury)
- Middledrift water scheme continuation, Nkandla (R500 million)
- Umkhanyakude : Jozini-Ingwavuma bulk water supply (WTW / bulk distribution (R1.35 billion)
- Mooi Umgeni transfer scheme / Springrove Dam (R1,6 billion)
- Hlabisa – Mandlakazi water scheme (R170 million)
- Dundee / Vant’s Drift bulk – Upgrade Vant’s Drift WTW, bulk distribution (R800 million)
- Msinga bulk and secondary bulk (R880 million)
- Construction of Bulwer Dam (R550 million)
- South Coast augmentation, Mahlabashane dam, WTW and bulk pipelines (R251 million)
Although the acceleration in delivery is exciting, the enormity of the task and, in particular, the magnitude of capital injection required in terms of bulk infrastructure remains a key challenge. There is a significant imbalance between backlog eradication targets and funding availability. The reality remains that delivery of services to every household is still only achievable beyond 2020 at a current funding rate. But, no matter how difficult the battle is, we believe it is winnable!
Improving the capacity of Government to fast track service delivery - Strengthening IGR
Chairperson, the challenges of our time requires common consensus among all development players in order to achieve the type of society envision in our Constitution. Intergovernmental coordination is therefore a vital ingredient for us to conquer the triple challenges of poverty, inequality and unemployment. We have since created IGR structures such as the Munimec, where the MEC meets on a quarterly basis with the Mayors of all the 61 municipalities. This Structure is supported by the Technical Munimec which comprises of the HOD COGTA and Municipal Managers, the CFO Forum. We are also strongly promoting the concept of shared services.
These structures are helping our government to function more in an integrated and as a coherent unit. There is a more improved alignment in planning, budgeting and implementation as a result of the existence of these structures. All of us are now single minded in terms of the developmental goals we must collectively pursue.
Operations and maintenance of infrastructure
The condition of municipal infrastructure is a crucial element in our ability to ensure service provision to all communities. Chairperson, the lack of proper maintenance plans for infrastructure by municipalities remains a key cause for concern. Not only will this undermine the progress we have made in investing in community infrastructure to address service delivery backlogs but it is a risk to the health and well-being of communities.
If municipalities do not budget for maintenance, this situation may result in lower service level standards or municipalities having to incur excessive cost to replace/upgrade infrastructure and equipment.
The importance of preventive maintenance of infrastructure cannot be over-emphasised, as failure in this regard can result in municipalities incurring significant expenditure in future to replace assets not well maintained.
We have since introduced a new policy approach where we have made it compulsory for municipalities to develop maintenance plans for every new infrastructure project they are undertaking. We will have intense focus on the implementation of this policy. All projects approved must have a maintenance plan and this is a condition that municipal councils will be persuaded to endorse when they approve infrastructure projects.
Chairperson, while we recognise the achievements we have made through our humble collective effort we are under no illusion about the importance of the work that still needs to be done. We understand clearly that every passing day brings with it new opportunities and challenges; however our philosophy is that "out of much must even come much more".
Promoting good, clean and accountable governance Chairperson it is not only in the area of service delivery where we are making progress but also on matters of governance and financial management. In our days municipalities are able to prepare and table their budgets on time, they submit their annual financial statements to the Office of the Auditor-General on time, and most of them compile their annual financial statements in-house. Clearly we have made enormous strides in reducing the dependency of our municipalities on consultants by emphasising on the importance of internal skills transfer where consultants have been engaged.
This is clear proof that municipalities have significantly turned the corner. But it is not long time ago that the situation looked bleak. Today we look out on stronger and stable local government than few years ago and growing stronger each day.
Section 139 interventions
Honourable members, will recall that when we presented our policy speech in 2011 the municipalities of Indaka, Okhahlamba, uMsunduzi and Umhlabuyalingana were under section 139 intervention. However, owing to the positive turn of events which has culminated in financial stability, service delivery and governance and accountability some of these municipalities, interventions were terminated in uMsunduzi and uMhlabuyalingana. However, we have retained interventions in uKhahlamba and Indaka and significant progress is being recorded on daily basis.
Chairperson we are happy to report that the manner in which uMsunduzi has transformed itself from an image of a municipality in turmoil to an institution of hope and pride for its people, has made a strong case for the exploration of additional metropolitan municipalities in the province. We see this municipality growing every day. We see positive stories.
Recently the municipality moved into top gear in addressing the concerns of its rate payers about the refuse collection within the municipal area, the council has acquired additional resources including new cars, equipment and personnel to respond to the concerns of ratepayers. There are encouraging efforts to deal with the problems in the billing systems including the use of technology and innovation to improve its efficiencies in the manner in which it renders services.
Residence of uMsunduzi we are told receive their accounts via smses! What a breath of fresh air! and I am sure environmental activists will applaud this initiative, a legacy of COP 17. It is thanks to the leadership collective in this municipality and we still expect more.
Progress on the Ethekwini Intervention
It would be remiss of me not to let the public know about the status of the investigation in the eThekwini Municipality following cabinet intervention. Disciplinary action has commenced against 10 councillors and the 123 officials who were implicated in the report. Indeed there now is strong monitoring in the utilisation of section 36 delegations.
The municipality has requested additional time to implement fully the recommendations of the report owing to a number of legal procedures and processes they have to observe including on the side of those who may be subjected to remedial measures.
We have also received various requests for this report in terms of the Promotion of Access to Information Act and will process these. The reason for not releasing the report at this stage is that many parties including outside entities have been implicated in the report, while further investigation may also be required in some instances and this may compromise future investigations.
We want to make a humble plea to the Members of this house to allow the municipality space to implement the report and turn things around in eThekwini. We are very pleased with the progress made under the leadership of Mayor James Nxumalo. We will continue to support and use all the lessons learnt to improve other municipalities within the province.
Fighting Fraud, Corruption and Maladministration
Chairperson, despite concerted efforts to root-out maladministration, fraud and corruption, this cancer continues to rear its ugly head at every turn in our municipalities. We have discovered that supply chain management irregularities are the major causes of irregular, fruitless and wasteful expenditure, with municipalities excessively using regulation procurement delegations reserved only for emergencies without just cause and deviations and variations in terms of regulation 44 which is not procedurally correct.
This has led to approximately R520,6 million in unauthorised expenditure; R2,1 billion in irregular expenditure and R11,7 million in fruitless and wasteful expenditure based on the audit of municipalities. We have strengthened Municipal Scopas and Audit Committees so that they can have the required capacity to investigate this bad financial management practice and take the necessary action in terms of the legislation.
I must be upfront in saying that irregularities in expenditure does not automatically equates to corruption but of course it concerns us because if left unchecked it may be a breeding ground for corrupt elements. Chairperson, owing to the impact of municipal supply chain management units in infrastructure delivery as alluded to earlier on and now weaknesses in municipal finance administration. We are investigating whether it will not be a better option to have a supply chain shared service for Local Government in the province.
Once we have finalised our study we will engage with the provincial finance department, South African Local Government Association (SALGA) and other partners, our purpose is to improve financial management and ensure that more money is directed towards improving service delivery on the ground.
Chairperson while we are making progress in eliminating the scourge of corruption, the reality is that there are individuals who have made it their profession, they spend sleepless nights to perfect their corruption acts so that they can escape our anti-corruption systems. In recent times we have observed an increase in a new scam involving the stealing of municipal cheques.
We are happy that we have succeed in preventing major loss of funds through this scam and that we have arrested suspected syndicates involve. However, we have since discouraged municipal councils from utilising cheques and advised them to facilitate payments via electronic funds transfer. We will work with municipalities to uncover such activities which may include syndicates and ensure disciplinary, civil recovery and criminal action is taken as necessary.
The department has uncovered large scale fraud and corruption in the Uthukela District in the year under review, which has led to five arrests, three employees and two other persons. One of the senior officials has resigned and others are to face disciplinary action. It was found that officials were running their own businesses, contracting with the municipality and syphoning monies from the municipality. One of these officials was running a security company and providing guards to the municipality, and charging for more services than were provided.
A supplier was also defrauding the municipality in conjunction with municipal officials by not supplying goods or over-charging for goods and services provided. Most alarming has been some instances where these senior municipal officials actually deliberately sabotage water service delivery for personal gain.
Despite the existence of the Woodstock Dam in the Uthukela District and sufficient water, municipal officials allegedly prioritised the used of water tankers to deliver water to our people. Indications are that water services were not delivered and that fictitious vehicles were used.
It appears that huge amounts were paid towards the use of 10 000 litre water tankers and upon investigation we discovered that the number plates were those of motor cycles. Preliminary investigations reveal that approximately an amount to the tune of R12 million has been siphoned through this corruption scam in uthukela alone.
This is enough budget to supply a village with sustainable water delivery. This is a severe indictment on us as a society and these unscrupulous perpetrators will not get away with such acts. We are working with law enforcement agencies to expose all these corrupt elements and have them paying for defrauding tax payers money.
Our investigations are comprehensive and the alliances we have built with the SAPS Commercial Crime Unit, its HAWKS unit and Asset Forfeiture will ensure that we are able to deal effectively with such criminals. Whilst we will continue dealing with reported instances for maladministration, fraud and corruption, we will proactively be supporting municipalities to implement mechanisms to mitigate the risk of fraud and corruption. These will include development, adoption and implementation of fraud prevention policies, strategies and plans in municipalities.
Local Government Election
Honourable Members, we indicated in our last year's budget vote that preparation for the country to host peaceful, free, fair and democratic local government election will occupy the major part of the department's work. Indeed Chairperson we undertook massive campaigns to mobilise people to exercise their right to vote. We were also able to support the electoral commission with infrastructure such as water tanks and electricity lamps in many of the voting stations.
After the elections this infrastructure remained the property of the voting stations which in the main were schools and this will go a long way in alleviating the challenge of schools without water and energy which hampers the key priority of quality education.
Chairperson, it is now a matter of posterity that through our campaigns we disprove the myth about people being apathetic about local government elections by recording the highest number of people who registered and casted their votes during 2011 local government election day.
Our work did not end there we also ensured a seamless transition from the previous administration to the new ones. This we did within the stipulated time frames in line with the will of the people. We were fast in responding to challenges and today we have stable local governments that daily discharge its responsibilities effectively to the citizens of the province.
Traditional Council Elections
Another epoch making event that the department undertook in the year under review was the holding of the Traditional Council elections. The elections were a resounding success and for the first time we generated interest on this unique brand of election to society at large. While we recorded improvement in the voter turn-out compared to when the elections were held for the first time, we believe more still need to be done to build this brand of elections as one of the important events in the elections calendar of our country.
This will require more resources from the National fiscus because unlike National and Local Government elections where political parties, the IEC, and many other stakeholders pour in resources to educate people and create awareness. The Department had to be solely responsible for elections including the implementing voter education and awareness within the minimal resources we have.
Nevertheless we believe that the lessons learnt will augur well for the future when these elections are held. We have a proposition that the Electoral Act needs to be amended so that the IEC conduct these elections as part of their electoral work other than the current arrangement where the Electoral Commission is doing it upon request from the department. Despite the challenges experienced we want to thank traditional communities, amaKhosi and the IEC for a job well done.
Tools of Trade for Traditional Leaders
In ensuring the functionality of the Institution of Traditional Leadership, the department purchased two vehicles for the Chairperson and Deputy Chairperson of the KZN Provincial House. As part of the continuous support to Amakhosi on a l eadership programme, computers and 3Gs were purchased and given to them.
These are the tools of trade to assist them in undertaking their research as part of the requirements for the course. The department is also pressing ahead with the programme to build respectable residences (Imizi yezizwe) for traditional communities. To date over 20 residences are at various stages of construction while some have been completed. We were humble to handover uMuzi wesiZwe saKwaKhumalo in Utrecht two weeks ago.
New announcements for 2012/13
Honourable Members, allow me to take you through the targets for the New Financial Year in the main which seek to further support and strengthen our local governance institutions.
The programme of action for 2012/13 is as follows:
- The departure point for this financial year will be to strive to ensure that the IDPs are localizing the National and Provincial priorities by aligning their plans with the National Development Plan, the New Growth Path, the Provincial Growth & Development Strategy and the Provincial Growth & Development Plan
- Supporting District Growth & Development Summits for 10 district municipalities. This process will culminate into the development of simplified IDP's.
- Facilitate the preparation of District Service Delivery Plans (IDPs of the same family of Municipalities to be aggregated to produce a district plan of catalytic projects to inform government spending).
- We will assess all municipalities, adjudicate best practices, and hold municipal excellence awards which will recognise innovation, best practice, and leadership. We will also recognise solid financial management, including the judicious expenditure of all municipalities on the "right things". In this respect we call on the leadership in all municipalities to implement stringent austerity measures to promote expenditure on service delivery matters.
- Support development of Community Service Centres, in line with Cabinet Lekgotla resolutions. The community service centres will function as embryos for the development of new towns. This is in a thrust to bringing services closer to the people especially Home Affairs and South African Social Security Agency (SASSA).
The Community Service Centres will initially be developed around civic nodes and offering government services at different levels. The centres will organically grow and will eventually attract commercial activities that will become the core drivers for the growth of new service and town nodes. This will require private sector to work closely with the government to identify and map out the best location for the community service centres.
Initial focus will be on those areas adversely affected by a lack of such facilities resulting in travelling long distances to get government services. The Department will ensure the coordination of the provision of these facilities as a combined effort with the Dept of Social Development and Department of Public Works. A business plan for the roll out is being finalised. This is in line with the SOPA of 2012.
Schools and Clinics without basic services
Honourable Members, we are still extremely concerned about the number of schools and clinics without basic services. A technical committee has been established to facilitate 100% coverage to these institutions. We have discovered that among the causes of this situation, is the fact that municipal bid committees do not have the appropriate skills to draft technical specifications and evaluate technical tenders; that the postponement of committee meetings have a tremendous impact on project implementation schedules and, furthermore, that the evaluation methodology all but eliminates factors relating to a service provider’s ability to do the job.
Also, the price is the overwhelming factor and the number of contractors who "fold" during implementation due to lack of liquid cash, skills, plant, equipment and adequate "know-how" is too high. We have, in seeking to remedy this situation, decided that the review of national fund allocation policies for infrastructure capital development should be re-visited as a matter of urgency and that 34. "The journey continues"the needs-based allocations to municipalities with sufficient management capacity, needs to be pursued.
Municipal Infrastructure Support Agency
The establishment of Municipal Infrastructure Support Agency (MISA) to enhance municipal capacity is indeed a welcome initiative. This agency will be constituted by various experts in the field of engineering, finance and planning. Its primary task is to drive implementation of programmes as part of the support plan in the 23 targeted municipalities. Municipalities earmarked to benefit from the MISA programme include the following uMhlabuyalingana, Nongoma, Mtubatuba, umzimkhulu, umkhambathini, ukhahlamba, umsunduzi, Mthonjaneni, Mbabazane, uPhongolo, Jozini, Big Five, to mention but a few.
Action support plans have been developed which will focus support to specific areas. This will obviate the "one size fits all", approach to support. Co-ordination between housing developments and infrastructure development, particularly water and sanitation provision, will continue as our key area of focus to ensure that all human settlements plans are adequately co-ordinated with Water Service Authorities, in particular. This will enable Water Service Authorities to include infrastructure developments to support housing development in their planning. A forum between Human Settlements and CoGTA has been set up. This is to ensure co-ordination between housing development and infrastructure development.
Fresh Produce markets and Agri processing FacilitiesThe KZN province has commenced with the process of providing fresh produce markets in line with the Cabinet Resolution. The concept has been finalised and provision of the facilities will be customised to suit the conditions and needs in each district. To date Jozini in Mkhanyakude has completed the construction of a market that will be utilised by farmers in the Makhathini Flats.
This is in line with the Makhathini Master Plan that was adopted by the KwaZulu-Natal Government in 2010. The relevant government departments will continue to work together to develop sustainable fresh produce markets. Farming production plans and the mobilisation of farmers to grow the right product will continue to be the focus in the support systems for the fresh produce markets initiative join intervention.
Investigations have commenced in Ilembe and Uthungulu for the provision of the markets while work is also underway in the Middlerus area for an agri processing facility to process produce from the Middlerus Joint Venture in partnership with ADA and Land Affairs. A budget of R7m each will be provided to support agri processing in Ilembe and the Mooi River Middlerus areas as work is already underway to finalise the detailed planning.
Food for Waste R10 million
To ensure food security among the poor households, the KZN Government will be rolling out the food for waste programme in line with the National Policy on Food for Waste under the Social Sector of the Expanded Public Works Programme (EPWP). This is a model that was adopted from Brazil Curitiba and successfully piloted in the province‘s major cities. The programme beneficiaries will receive food parcels in return for 3 days work per week and the productive work will be focusing on cleaning the rural towns and their main entrances with a close alignment to the small town rehabilitation programme.
This programme is not replacing the municipal responsibility to provide services but it is complimenting the efforts and making sure of the provision of an employment safety net. Unsightly hot spots will be identified for cleaning. In this way government will ensure food security to deserving families who are indigent.
The municipalities will continue playing the role of monitoring the programme and identifying the hot spots that require cleaning. In the process the department will create at least 600 job opportunities in the Province in all the selected sites which are Ubuhlebezwe, Umzimkhulu, Mandeni, Msinga, Mthonjaneni, Durban and Nquthu.
Municipalities will be supported with 100% contribution for the first year roll out and thereafter on a sliding scale depending on the impact of the first year implementation. As per the Cabinet resolution we will lead a clean-up campaign in the CBD of Pietermaritzburg. This programme will also target the hostels in eThekwini.
Disaster management
The province has a renewed focus on disaster management after successfully hosting the COP 17 event. The effects of climatic change are being felt as the province is experiencing a high rate of disaster incidents. Support will continue to be provided to districts to enhance their state of preparedness for any incident. Community awareness programmes will continue to be a priority area and seasonal awareness campaigns will be rolled out. The KZN province will continue to lobby for funding for the rehabilitation of infrastructure damaged through disasters.
Support will be provided to Amajuba, Uthukela and Umkhanyakude to ensure fully fledged disaster management centres are constructed and equipped. A budget of R15 million has been set aside for the support to these priority municipalities based on capacity assessments conducted
A database of disaster management volunteers will be finalised per district and training of these volunteers will be prioritized to intensify the support mechanism in the event of a disaster. The province continues to experience fires resulting in disasters especially in the Zululand and inland areas. At least 17 firefighters have been trained as part of the government efforts to increase the firefighting capacity in the province.
We were excited to preside over their pass-out parade on 16 May 2012 when we hosted our disaster management workshop. At this workshop we were honoured to have the presence and participation of a senior member of the 911 fund in the USA, Dr Stephen Hittman. He assisted our province in undertaking an intense fire fighting apacity assessment in all district municipalities. We have since developed strong relations with the 911 fund so that we can tap into their capacity and knowledge in order to prepare our province against disasters of 911 proportions.
We will during the course of the year sign an with the fund which will help unlock support to this province. In the current year we will be seeing off at least 15 students graduating with an accredited firefighting qualification at the end of March 2012. Job creation through Corridor and Small Town Rehabilitation (R150 million).
1. Job creation through LED initiatives aligned to the sectors identified in the New Growth path will remain a major priority of the department. Through Corridor Development and Small Town Rehabilitation, municipalities will continue to be supported to enhance the infrastructure and sectors that will open up further investment opportunities. Through the revised implementation methodology for the District Growth and development summits, each district is expected to engage all stakeholders and identify high impact catalytic projects that will make a difference in terms of job creation.
The KZN government will play a coordination role in the roll out of these summits. Assistance will be provided to secure funding for the prioritised high impact projects in each district and aligned to the Provincial Spatial Economic Development Strategy (PSEDS). Over and above the 22 nodes currently being supported, a further 7 nodes have been identified in line with the PSEDS. The new nodes prioritised for support in the current year are Nongoma, Ulundi, Danhausser, Mandeni, Nwedwe, Edumbe and Bergville. Municipalities are urged to identify bankable business concepts linked to their economic strengths.
Operation Sukuma Sakhe Chairperson, it is often said that where there is no vision, people perish. I think it is proper at this stage to thank the Premier for his vision which has helped to re-energise the Sukuma Sakhe initiatives in our province. Indeed Sukuma Sakhe is changing people’s lives for the better. Community problems on the ground at ward level are getting resolved faster than before. Recently we were humbled to be joined by private sector organisations who partnered with us under the Sukuma Sakhe programme and helped to make a difference in two of our senior citizens in Ntuzuma and a children’s home.
As CoGTA we are fully behind the success of Sukuma Sakhe. We have since brought on board Community Development Workers. The Community Development Workers (CDW) new defined role on Sukuma Sakhe will be to facilitate and coordinate profiling within wards, ensure efficient administration of the war room including referral and follow up of cases to various service delivery stakeholders. To this end, the department will assist with the development of what is considered to be a model war room, to ensure that service delivery happens at ward level and government is accessible to the people, where they stay.
Capacity Building for Traditional Institutions
Chairperson it is a known fact that for an organisation to be successfully, it must be capacitated. We have embarked on a myriad of programmes aimed at capacitating amakhosi so that they can play a key role on development issues. Twenty two Amakhosi were enrolled at the University of KwaZulu Natal for the Leadership and Governance programme and twenty one graduated from the programme in the previous financial year. For the 2012/13 financial year a total of 30 amakhosi have been enrolled.
The department will focus its energy on empowering the members of the respective Local Houses of Traditional Leaders and Traditional Councils to ensure that service delivery and the ability of the Traditional Institutions to deliver on their mandate is enhanced. We will also capacitate traditional council secretaries in order to ensure that they manage finances in a better way and to ensure efficiency.
This will also ensure that the funds collected through customary contributions are managed well. We will also roll-out the induction programme for the new Traditional Councils. We have since developed a comprehensive induction manual which covers a wide range of areas including administration, development and leadership etc.
Traditional Council by-elections
The department will conduct a second round of elections to accommodate the plus minus 80 traditional communities that, for a variety of reasons, did not participate in the elections that were held on Sunday, 19 February 2012. These elections will have to be held within the first 6 months of the new financial year so as to not disadvantage these communities from service delivery programmes that will be enjoyed by 204 traditional communities with newly-reconstituted and fully functional traditional councils.
Reconstitution of the Local Houses and the Provincial House, the department will also facilitate the reconstitution of Local Houses as well as the Provincial House in line with amendment Framework Act on Traditional Leadership and Governance. The new legislation requires that the term of office of the traditional councils, Local House, Provincial and National House must be aligned.
Amendment to the Traditional Leadership and Governance Act, the department is also going to table, to the Legislature, amendments to the KwaZulu-Natal Traditional Leadership and Governance Act, 5 of 2005 with the aim to bring it in line with the amendments that have been effected to the National Framework Act in 2009, and second to mitigate the challenges that are faced by the Department and the Institution of Traditional Leadership in the Province due to the fact that the Provincial Act require adjustments to align with major events nationally.
This new legislation will also assist in the legal incorporation of the traditional communities and leaders of uMzimkhulu after an extensive research was conducted on the issue both locally and in the colonial office of the British National Archives. I must say Chairperson it was fascinating to observe the amount of our own history that is still held in foreign hands by our former colonial masters.
It has been a challenge for us to access some of this information owing to the fact that every time we needed it we had to beg the authorities and travel abroad. This proved to be a costly exercise indeed. Since our visit we managed to build relations that will facilitate our easy access to this information. We also managed to reach an understanding with the School African Studies at the Oxford University. As part of this understanding the university will provide a student who will conduct research so that this wealth of information about our history may be returned home where it rightfully belongs.
Harmonious relations between traditional leaders and, councillors It is also important to mention that the department successfully hosted the assessment workshop on the state of Traditional Leadership in July 2012 and a Summit on Traditional Leadership and Local Government in December 2012. Both these gatherings assisted the department to assess its programmes so as to ensure that they correctly align with the expectations of the Institution of Traditional Leadership in order to assist it to perform on its mandate of facilitating service delivery working with government and be the custodians of culture and customs in our province. We have commenced in earnest with the implementation of section 81 of the Municipal Structures Act as per the resolutions amakhosi and councillors summit.
Celebrating our Heritage: Installation of Amakhosi
The department will again this year continue to support His Majesty the King in performing his duty of installing amaKhosi as we have done in the past year. Facilitating rural development Working with other stakeholders like traditional councils and Ingonyama Trust Board, we will facilitate utilisation of land in traditional communities for the delivery of National and Provincial poverty eradication projects.
We will work with amakhosi on land utilisation to promote the agrarian revolution and supporting infrastructural services. We will also help develop and process documentation for the granting of formal secured land tenure. Together with the Department of Agriculture and Rural Development, we facilitated that amakhosi be trained on the mechanisation programme so that they can lead the rural development agenda.
Land disputes
Land disputes by nature militate against development and progress where they occur and further create tension between disputants, instability and uncertainty thereby stalling developments in the area. The department, working with communities and Amakhosi will facilitate the resolution of such disputes as a matter of urgency and create conditions conducive for development and provision of services.
It will also continue to assist the Land Claims Commission in resolving land claims lodged by the Traditional Councils by providing information available to the department which may assist the Commission to settle the claims in question without delay and thereby clearing the way for developing the areas. The department is involved in capacity building of the members of the Traditional Councils on an orderly land allocation which would make it easier and less costly to provide basic services to the communities.
The areas in such capacity building include: - that the traditional council may allocate land only in its defined area of jurisdiction. In the allocation of sites, the traditional council should take into cognisance the availability of appropriate services, infrastructure, etc. in the area.
Leading from the front is not going to be easy. As I have elaborated on the plans and the goals for the coming financial year, it is equally important that we implement these plans in order to achieve these goals.
We remain ready to discard those amongst us who still think it is 'cool' to collect your pay-cheque after a month of loafing and simply accumulating S&T. We remain committed, as we have proved it before, that we will not hesitate at throwing a book at a municipality that fails improve even after numerous interventions to remedy its situation. We are neither afraid nor trigger happy. It is our duty to act. We invite everybody, comrades, friends, and members of the opposition parties to put hands on the wheel and strive to keep our province as one of the best.
We may be singing in different in languages, but the melody should, and will be, service delivery, economic development and good governance.
I would like to thank all the Honourble Members, my colleagues in the Executive led by the Honourable Premier for the support you have provided our department, and me in particular, over the past financial year. To all our partners we want to say the calls, emails, smses, reports, complaints, and advices have taken us to where we are today.
In the late Martin Luther King Jnr's words in another place, at a different time, under different circumstances for a different purpose, once said:
"I just want to do God's will. And he's allowed me to go to the mountain. And I've looked over, and I’ve seen the promised land! I may not get there with you, but I want you to know tonight that we as a people will get to the promised land".
Our journey to the promised land continues! Let no one be found wanting!.
