T Makwetla: State of the Province Address

20 February 2009

Madam Speaker and Deputy Speaker of the Mpumalanga Legislature,
Members of the Executive Council (EXCO),
Honourable Members of Parliament and Members of the Mpumalanga
Legislature,
Your Excellencies, Ambassadors, High Commissioners and Members of the
Diplomatic Corps,
Chairperson and Deputy Chairperson of the Provincial House of Traditional
Leaders,
The Acting Provincial Commissioner of South African Police Service (SAPS),
Commissioner Machabi,
The Acting Director-General of the province and Heads of Departments
(HOD),
The Executive Heads of our parastatals and board chairpersons,
Our Honourable Mayors, councillors and leaders of South African Local
Government Association (SALGA),
Our revered traditional leaders, Amakhosi/Magoshi, and our spiritual
leaders,
Struggle icon, Umama uNomazamo Winnie Madikizela-Mandela,
The Treasurer-General of the African National Congress (ANC), Cde Mathews
Phosa,
Ambassadors of the Mpumalanga Heritage, Greening and Tourism Flagship Project,
Gogo Magongo, Mama Esther Mahlangu and Uyanda Mbuli,
Our distinguished guests and all dignitaries present,
Residents of our province Mpumalanga at large,
Compatriots,
Comrades and friends,
Ladies and gentlemen,

Introduction
Today we have jubilantly rendezvoused at the seat of our provincial
administration and in our districts as communities of Mpumalanga, to take stock
of work done in government over the last five years, as our country fervently
prepares yet again to root democracy on our soil by electing afresh, trusted
South Africans to take our country forward.

In 2004, when we assumed duties, our assignment was to create work in order
to fight poverty, as we proceeded to advance and consolidate change which was
ushered in with the establishment of what we today know as the province of
Mpumalanga, fifteen years ago. Part of what this mission entailed is that we
consciously continued to pull down the ethnic walls and racial and social
barriers-of-old, among citizens and communities, and forged a broader
solidarity.

To tackle poverty we needed to mitigate the differences of life of those in
the towns and those in the rural villages of our province, to ensure equitable
access to opportunities government provides, irrespective of where the
individual is, be it in Sikhwahlane or Seabe; Sonheuwel or Pienaar. The desire
for better levels of cohesiveness in our country is indeed a well placed
objective. In this regard, the need to promote a collective memory and
knowledge of who we are as a people, remains an ongoing challenge to buttress
the cohesiveness of our communities. And the place of heritage in that
endeavour cannot be over-emphasised.

Honourable Speaker, on this occasion last year, we made bold our commitment
to tackle the outstanding priorities of our administration as business unusual,
out of our belief that we can always do more.

I am happy to report to this House that our communities can accept this
report without any nagging doubt whether we could not have done more, because
this is about all they could get out of us. What we did not do, was not because
of a lack of will nor desire to make good our resolve, but a function of the
reality of our limitations.

Honourable Members, in the toil of public servants in our province and
government in general to transform South Africa for the better in the
contemporary period, I wish to pay special tribute to the legacy of the former
President of the Republic, President Thabo Mvuyelwa Mbeki, for his inspiration
and force of example of total dedication, self-sacrifice, clarity of purpose
and integrity in the execution of public duties. Over and above this, there can
be no doubt that when the history of the epoch-making breakthrough which
brought an end to conflict in our country and opened vistas for a people's
republic is written, his name will speak volumes of our people's heroism and
love for democracy and social progress.

Madam Speaker, I say this respectfully appreciating the many views South
Africans hold on the record of our former President, hoping and believing that
only time can salvage us from the massive confusion our country has been
plunged into on this matter. This will come to pass, and the truth of the
events of today will one day stand in much bolder relief for us South Africans
to fathom. For now, let patience protect us, "it is the supreme virtue of the
gods, who have nothing but time", as Robert Greene submits.

Everything good will happen – the grass will grow again.

Madam Speaker, before I turn to the courageous work of the last ten months,
may I be indulged to offer unsolicited reflections on the state of our nation,
the country I am privileged to have been born in, and the great people who bore
me.

Returning from my first visit to China recently, I could not but concur with
many South Africans who are worried by the unsatisfactory sense of urgency and
common purpose in many spheres of our public endeavour. Now I can also say I
have seen "the rise of a hungry nation." It is fraught with scary consequences
for complacent nations in the world we live in today.

But, Madam Speaker, China is most importantly an overwhelming inspiration of
cohesion and an immense sense of national purpose. The Chinese people's strong
collective memory of where they come from as a people, viz their heritage and
how it informs the purpose of what they are doing today, and where they want to
see themselves tomorrow, is palpable everywhere you go. When we add their
incredible population statistics to the above strengths, we can begin to
appreciate the phenomenon we are here talking about, their potential and
possibilities. The transformation sweeping through China in the recent years
has lifted more than 400 million people above the poverty line of one United
States (US) dollar a day since reforms began in 1978. Their economy has posted
average annual growth rates of 9,4 percent, the highest of any large economy in
the world. In a country where in 1978 private telephones were unheard of, by
2005 over 350 million people had mobile phones, and over 100 million had access
to internet.

Madam Speaker, maybe to help us comprehend the enormity of what we are
talking about, reference to something that has made us all feel the convulsive
force of a rising China is helpful, viz the disappearance of manhole covers
from our roads, resulting in motorists bursting their car tyres ever so often,
and unsuspecting pedestrians stumbling into holes.

As the British journalist, James Kynge, relates the story, it started during
mid February 2004 when, "slowly at first but with mounting velocity, manhole
covers started to disappear from roads and pavements all over the world. As
Chinese demand drove up the price of scrap metal to record levels, thieves
almost everywhere had the same idea. As darkness fell, they levered up the iron
covers and sold them to local merchants who cut them up and load them onto
ships to China." First, in nearby Taiwan, then Mongolia and soon it was
Chicago, Scotland, Montreal Canada, Kuala Lumpur and of course, Johannesburg
has not escaped this curse.

As Kynge correctly observed, "the events re-shaping China are no longer
merely resonating on foreign shores, but actually changing the way the world
works."

Honourable Members, I have inordinately dedicated time to comment about
China because I believe there can be no better wake-up call to the perilous
syndrome in parts of our national life, of lack of motivation, the culture of
entitlement and greed across all levels of society, which pose a real threat to
the re-making of our country, and the common purpose our struggle bequeathed us
as South Africans.

In spite of being a young country with a glorious legacy of struggle and
pregnant with purpose, we have in several areas a syndrome of schools which are
lacking leadership, important sections of our workers who are disappointingly
selfish and thrive on poor work ethics and are alienated from the product of
their labour; and business individuals who have no regard for integrity and are
bold to pursue naked greed.

These, Madam Speaker, are weaknesses we must mobilise our people to resist
to stay our cause, lest our national project is allowed to cave in.

Madam Speaker, the good news is that in spite of the drag we have sketched
above, our province has again displayed growing capacity to deliver and
accelerate development. Our budget spend has continued to grow such that the
province was for the first time projecting overspending its finances at our
half-year mark.

Economy
Honourable Members, in our address to the First Sitting of the Third Mpumalanga
Democratic Legislature, in 2004, we drew inspiration from the 2004 Manifesto of
the ruling party, the African National Congress (ANC), we said, and I
quote;

"As we enter the second decade of freedom, our main challenge remains
speeding up the creation of work and further strengthening the fight against
poverty. In eradicating poverty and underdevelopment we must as a matter of
course encourage the growth, development and modernisation of our regional
economy, thereby increasing its ability to create jobs in order to provide more
people with incomes."

Over the past five years the provincial economy has grown steadily in line
with the national trends, achieving an average growth of 4,7 percent in gross
domestic product (GDP) per region between 2005 and 2007.

These achievements of the past few years in our regional economy have
occurred against the backdrop of a favourable national economy and global
economic outlook. However, none of us here today can pretend to be ignorant of
the gloomy skies and horizon presented by the likely impacts of the global
financial crisis on the developing world and Africa in particular.

Indeed, these are uncertain and uneasy times for all of us!

Minister Manuel and the National Treasury forecast a GDP growth rate of 1,2
percent for 2009, the lowest our national economy has grown in the past decade,
but improving in 2010 due to various interventions including public
infrastructure spending, lower interest rates, the 2010 World Cup and a
possible recovery in the world economy.

These developments will undoubtedly lower demand for products from our
farms, mines and factories whilst making the achievement of targets in
employment creation and poverty alleviation more difficult.

According to the International Labour Organisation (ILO), we are now facing
a "global jobs crisis" as global unemployment in 2009 could increase by a range
of 18 million to 30 million workers, and more than 50 million if the situation
continues to deteriorate.

The time for finger pointing on the causes and consequences of the global
economic downturn is definitely over. We readily agree with those who have
suggested that the solution will lie in a collective global effort to return
the world economy to a favourable growth path whilst also addressing global
finance governance deficits in order to minimise future susceptibility to
crises.

Madam Speaker, I am happy to announce that in response to this crisis, the
provincial government will, in a few weeks, be hosting together with its social
partners, a provincial stakeholder forum to assess the impact of the global
financial crisis on our province and to explore the appropriate responses to
improve our competitiveness, to minimise job losses, and to mitigate negative
consequences on our communities.

Five year review
Great strides have been made by our province in attracting investment into our
economy. Indeed, many individual businessmen and corporates are realising the
enormous potential that exists in our province. Since 2005, our provincial
parastatal, the Mpumalanga Economic Growth Agency (MEGA) and before the
Mpumalanga Investment Initiative (MII), have facilitated more than R1,2 billion
investment into the province.

Our domestic industrialists have significantly boosted our regional economy
through new investment initiatives as they grow their operations further. Among
others, Anglo Coal, Sappi, Columbus Stainless and York Timbers have invested a
combined total of R11,3 billion in the province between 2004 and 2008 and, in
the process, managing to create close to 5 000 jobs.

To be able to comply with the new legislation regarding fuel specifications,
Sasol launched Project Turbo in 2004, which became operational in 2006. This
project was one of the largest projects ever undertaken by Sasol at that stage
and amounted to an investment of R13 billion. During the construction phase the
project provided employment to 13 000 construction workers and created 400
permanent jobs.

The re-commissioning of three power stations in our province by Eskom is
another important on-going investment project that has presented opportunities
to municipalities in the province. Eskom has invested R85 billion in the Kusile
Power Station, South Africa's cleanest coal-fired power station, situated next
to the Kendal Power Station in Witbank. Kusile is expected to provide a much
needed boost to employment in the area, as at least some 5 000 jobs will be
created during the construction phase.

This massive energy infrastructure project will inject much needed economic
life in the province. We are happy that without prompting, Eskom and the
Department of Public Enterprises (DPE) put in place a plan to ensure that local
spend is optimised in order to trap these billions of rands in the provincial
economy. A joint task team between Eskom and the Department of Economic
Development and Planning has been agreed upon.

In support of the Provincial Growth and Development Strategy (PGDS), we have
also launched a Growth Fund for which we allocated R200 million in this
financial year as seed capital. The Fund Manager and Board of Trustees have
been appointed. We are confident that the aim to attract R1,2 billion from the
private sector for the Growth Fund will be achieved in a short space of time.
Critically, the Growth Fund will enable larger economically viable projects
with long payback or high perceived risks to access commercial finance whilst
contributing to the much needed infrastructure development that will improve
the status of the province as an investment destination. This should not have
come at a better time for business in our province.

Madam Speaker, in our interactions with the business community in the
province, the inadequacy of our road and transport infrastructure has always
been an issue. Over the last five years, we have made substantial investments
towards improving our road infrastructure.

As we indicated in our address to the legislature last year, our efforts to
rehabilitate the provincial coal haulage network grid are in progress.

On 9 December we formally launched the Maputo Development Corridor Flagship
in Nelspruit with the attendance of a strong Mozambique delegation led by the
governor of the Maputo City Province Ms Rosa Manuel da Silva. We announced the
first priority projects and I can today report on progress on some.

We have identified premises for hosting and completed the business plan for
the English Portuguese Language Institute, and are now in advanced negotiations
with various accredited academic providers to roll out language training. The
institute will have a business section for small, medium and micro-enterprises
(SMMEs) interested in starting up translation and interpretation services
tapping into the output of the institute. The initial intake is expected in
June 2009, and we have committed 30 bursaries for the class of 2009.

We have signed a Memorandum of Understanding (MoU) with the Lowveld
Showgrounds Society to begin the civilisation of the showgrounds into a world
class Outdoor Events and Recreational and Cultural Hub, The designs have been
completed and we are undergoing a due diligence process and the various
authorisations from the environmental and municipal authorities. We are certain
that construction will begin by June 2009, with an initial R12 million rand
provincial government contribution. The facility will stage various shows,
exhibitions and cultural events ahead of 2010 and prepare us for the great
football spectacular on African soil.

Whilst there are delays with the construction of the One Stop Border Post
(OSBP) in Komatipoort, we have in partnership with the joint chambers of
Tourism and Business and the Municipality in Nkomazi completed an investment
master plan to take advantage of the public investment in the OSBP. The
provincial government will contribute appropriately through our own savings and
further engagements with national treasury to ensure that the OSBP is indeed
back on track.

Despite this challenge we will begin construction of the Corridor User Call
Centre and Customer Care Facility integrated with the Tourism Information
Centre nearing completion at the border precinct. This facility will support
the general public with public and private services like insurance, customs,
car hire, internet and courier, immigration information, health advice and
South African Revenue Services (SARS) information before travellers reach the
border. Construction will begin by 1 April and the facility will be fully
functional and staffed by August 2009.

The Food Technology Centre and SMME incubator is finally taking off. The
Department of Economic Development and Planning (DEDP) has signed a Memorandum
of Understanding with Tshumisano Technology Trust under the auspices of the
Department of Science and Technology (DST) and the National Research Foundation
(NRF). We have initiated discussions with the Tshwane University of Technology
(TUT) to become our academic partner. Land for the facility has been identified
and negotiations are advancing smoothly.

In our address last year we indicated that we would finalise work on the
scoping of economic opportunities along the Moloto Rail Development Corridor to
ensure that opportunities are fully developed through private and public sector
investments.

I am happy to report that the Moloto Economic Scoping Report has been
finalised and is to be presented to the executive council shortly. During the
course of the year an implementation plan for economic development will be
presented and consultations embarked upon with relevant stakeholders for the
projects to become a reality in the targeted areas.

Employment creation
Madam Speaker, in 2004, we set ourselves a target of creating 100 000 job
opportunities through the Expanded Public Works Programme (EPWP) by 2009.
Today, I am happy to report that 106 159 job opportunities have already been
created; surpassing the target we had set ourselves over this period by over 6
000 jobs. Women, youth and persons with disabilities benefited from EPWP. In
last year's Address we stated our intention to enrol a further 1 000 young
people into this programme in the 2008/09 financial year. I am happy to report
that 1 050 youth enrolled in the National Youth Services (NYS) this year.

We created opportunities for women empowerment through our "Siyatentela"
programme, which by the third quarter of 2008/9 had benefited 1 983 women in
labour intensive road construction and maintenance.

During the past year, the Provincial Tourism Development Strategy was
launched. Ten strategic initiatives have been identified as steps we need to
address the challenges facing tourism in the province. These include, among
others; improving air access, expanding the tourism product offering; upgrading
service skills, and strengthening community involvement and transformation in
the tourism sector.

Madam Speaker, in line with the Provincial Growth and Development Strategy,
we have emphasised the role of agriculture in enhancing food security and
creating much needed jobs, particularly for the rural poor. Most worryingly,
research commissioned by the province shows that this sector's contribution to
the provincial economy has declined since 1996, although it remains the biggest
employer. It remains critical that we implement strategies to improve the
agricultural sector's contribution to economic development, food security and
job creation.

Madam Speaker, agriculture remains one of the key priorities to alleviate
poverty and enhance sustainable livelihoods. Our Masibuyel' Emasimini programme
was initiated to address the challenge of poverty and food insecurity in rural
areas by aggressively tilling the land. Support in the form of tractors, seeds
and fertilizers are provided to the rural poor in order to maximise food
production in poor rural areas of our province. As at the end of December 2008,
a total of R61 million had been spent during the programme's three years of
existence. To date, 30 600 have benefited from the programme.

In 2008/09, we promised to allocate R20 million to initiate a bio-fuels
pilot project on 8 000 hectares of land, with a view to expanding the scale in
the 2009/10 financial year. We have planted 3,042 hectare of soya, maize and
sunflower, 19 tractors purchased for soya production, marketing arrangements
finalised with National Marketing Council.

Madam Speaker, around the world, small enterprises constitute a large and
growing share of employment. During the period of our administration, we
achieved three major milestones with regards to the promotion of small
business; the adoption of a provincial SMME strategy, the successful rolling
out of the Small Enterprise Development Agency (SEDA), and the establishment of
the Mpumalanga Economic Growth Agency (MEGA) replacing the Mpumalanga Economic
Empowerment Corporation (MEEC) and Mpumalanga Investment Initiative (MII).
During the past year alone, 16 657 SMMEs accessed business development support,
and 284 SMMEs were assisted to access financial support.

Honourable Members, the provision of scarce and critical skills remains an
important priority to ensure that the province has requisite skills to drive
accelerated economic growth and service delivery. The implementation of the
'Vul'ematfuba' initiative is intended to enhance the availability of scarce and
critical skills needed in the province, as part of the Accelerated Skills
Growth of South Africa (AsgiSA) national initiative.

Last year, we awarded 91 engineering bursaries to enable students to pursue
qualifications in various engineering fields. The Mpumalanga Regional Training
Trust (MRTT) continues to play a key role in training the unemployed, workers,
out of school youth, the semi-skilled and community based groups at its various
centres. Between 2004 and 2008 Mpumalanga Regional Training Trust (MRTT)
trained 8 315 students, with a placement rate of 54 percent and 44 percent for
males and females respectively. As a province, we need to continue implementing
various measures to develop skills to empower communities and achieve social
and economic transformation objectives. Be that as it may, we could have done
more on this programme. I am happy that facilitation arrangements have been
corrected around this initiative.

In conclusion, I wish to say the future economy of our province looks
exciting. Over the last two years we have been involved quietly in hard work to
acquire two key infrastructure projects, namely government ownership of the
private KMI Airport and the building of an International Convention Centre
(ICC) for the province, and I am happy to announce that negotiations around the
two projects have been concluded and the necessary development plans will
commence. We started our economic sector work on a low institutional and
economic skills base. We must steadily continue to grow our capacity.

Social transformation and service delivery
Over the last five years of the current administration, the major tenets of our
social transformation and development programme focused primarily on fighting
poverty, underdevelopment, social deprivation and growing inequalities
characterising our society.

Pivotal to advancing the vision of a better life for all was our capacity to
accelerate investment in social infrastructure, improving access to housing
along with basic services such as water, decent sanitation and electricity,
improving access to quality education and skills development opportunities,
improving access to the social security net for poor and vulnerable households,
advancing access to comprehensive health care as well as addressing high rates
of crime in our communities.

Alongside efforts to grow the economy in order to fight poverty and
unemployment, providing the safety net in the form of social grants continues
to be critical in government's efforts to alleviate poverty among the poor and
vulnerable sectors of society. For many citizens of Mpumalanga, life has
changed for the better.

In Mpumalanga, the total number of social grants beneficiaries has
exponentially grown by 65 percent from 579 907 in 2004 to 958 229 as at the end
of January 2009. The number of children accessing social grants has grown by 92
percent from 368 500 in 2004 to 707 772 as at the end of January 2009,
attesting to government's commitment to addressing the challenge of income
poverty.

Madam Speaker, last month we launched the Anti-Poverty War Room campaign in
Nkomazi as part of our contribution to tackling poverty in Mpumalanga. This
campaign entails the profiling of most deprived households to identify their
specific needs, accelerate their access to government services and development
opportunities, as well as provide safety nets that would assist in alleviating
poverty among the identified households. The launch of the Anti-Poverty War
Room campaign at Sikhwahlane in Nkomazi represents another qualitatively new
intervention in the evolution of government strategies in the fight against
poverty. Two elements on which the Anti-Poverty War Room campaign rests are,
firstly, the appreciation that to uproot poverty we need to move from the
general to the specific. That is to say, we must address poverty according to
the specific challenges and needs of every homestead or affected family instead
of responding to generic partners of communities as gleaned from statistics. To
deal with the personal circumstances of human beings as statistics may indeed
not be very helpful because human beings with a similar problem may react
differently to the same solution provided. Secondly, the effective eradication
of poverty in many instances, as the pilot has shown, may not require
government to do new things but to get what government is already offering, to
work better. Many of the government programmes do not reach the intended
beneficiaries because at times they are not properly tailored to be effective
on the ground, or because of the way they were conceived, or due to other
handicaps beneficiaries may have. To overcome this, the eradication of poverty
challenges government to work genuinely in a new way.

In the initial pilot phase, we have prioritised six municipalities for the
implementation of the Anti-Poverty War Room campaign. These include Mkhondo,
Albert Luthuli, Thembisile, Dr JS Moroka, Bushbuckridge and Nkomazi
municipalities.

Delivery of basic services
Madam Speaker, the delivery of basic services such as electricity, water,
sanitation, refuse and waste removal is essential in improving the quality of
life and sustainable development for communities. Notwithstanding current
backlogs and challenges, remarkable progress has been made in the delivery of
basic services.

Currently, 583 505 households have access to electricity. A total of 219 375
households have access to free basic electricity. Despite advancements we have
made, the need to address the backlog of 242 059 households who do not have
access to electricity still remains.

As part of improving access to decent sanitation, we are encouraged that the
province was able to eradicate all bucket toilets in all formal areas and
informal settlements. To date, 18 617 bucket toilets were eradicated ahead of
the stipulated national target of December 2007.

We have enhanced the capacity of our municipalities to provide adequate
sanitation so that we address challenges posed by poor sanitation. Last year,
we finalised an assessment of sewerage plants in the province to ascertain the
extent of work that needs to be undertaken to address operations and
maintenance challenges.

This assessment pointed to urgent interventions required to upgrade sewerage
plants to expand their capacity to handle increased volumes resulting from
growth and development in the areas serviced by these sewerage plants. The
assessment also pointed to the challenge of overflowing VIP toilets that
require attention. The executive council allocated an initial amount of R40
million to address the problem of VIP toilets and attend to urgent operations
and maintenance work. To date a total of 57 300 households have been assisted
through this intervention. Currently, various initiatives are in progress in
municipalities to improve the condition of sewerage plants. However, the only
sustainable way forward is for municipalities to acquire the necessary
capacities to perform these mandatory duties assigned to them in law.

Madam Speaker, access to sufficient, safe and affordable water is vital for
human development and poverty eradication. It is a fundamental human right that
constitutes an important measure of the improved quality of life that the
citizens of Mpumalanga enjoy. Admittedly, access to clean and safe water is
critical in minimising negative health impacts such as water-borne diseases
that Mpumalanga has occasionally experienced over the last few years.

As part of the 'Big Five' flagship programmes announced in our 2007 State of
the Province Address, the 'Water for All' flagship was prioritised to ensure
that communities have access to water services infrastructure and clean water
by 2010.

We are encouraged by the progress we are making in reducing water services
backlogs. The accelerated implementation of this flagship has gained the
necessary momentum to enable the incoming administration to take the programme
to new heights.

Madam Speaker, of 945 394 households, 72,7 percent have access to water at
Reconstruction and Development Programme (RDP) level and above. The backlog of
the number of households with inadequate access to water has been reduced to
257 912, constituting 27,3 percent of the households in the province. Of this
amount, 3,5 percent households have no access to infrastructure at all.
Critically, these households are our real urgent priority for the provision of
water infrastructure and services.

Among other high profile projects, the implementation of the Nkomazi
Intervention Plan to the tune of R87 million has commenced to address problems
hampering the delivery of clean water to the impoverished and deprived areas of
Nkomazi. This intervention will benefit 54 081 households this year.

A water treatment plant is currently under construction in Delmas to
alleviate clean water challenges and provide 15 million litres of clean water a
day to affected communities. The plant will be operational by the end of 2009.
The collaboration between the provincial government, Delmas Local Municipality,
Rand Water and the Department of Water Affairs and Forestry (DWAF) will deliver
the construction of a water pipeline valued at R85 million to Delmas from
Bloemendal in Gauteng to provide 25 million litres of water per day to the
Delmas Municipality so that we relieve current water pressures. Construction
will commence in December this year.

Honourable Members, it is an irony that we who have kept a keen eye on
overall challenges of water quality management and control in our
municipalities, and the contamination of our river systems, should today be the
region that is hardest hit by cholera. From the beginning we were never
convinced that the cholera outbreak in the province emanated from outside. The
precious lives we have lost in our communities must serve as a painful reminder
that the provincial flagship projects we have, viz Water-for-All; and the
greening of the province through environmental waste management are not just
nice pastimes, but critical work to achieve a safe and better life for our
communities.

Housing delivery
Madam Speaker, the delivery of housing to the people of the province is not
only about the provision of shelter as a fundamental right, but it also speaks
to government's commitment to the alleviation of asset poverty among the poor
and vulnerable sectors of our society. Between January 2004 and January 2009,
the province built 57 553 housing units, thereby providing shelter and
enhancing the asset base for many poor and vulnerable families.

When we reported in previous addresses to this House, we acknowledged
serious capacity challenges that impeded the effective delivery of our housing
programme. Part of the intervention to enhance institutional capacity for the
delivery of the housing programme entailed the reconstitution of the Department
of Local Government and Housing into two distinct departments. I am happy to
report that this process has been concluded. We have reviewed organisational
structures to make provision for the appointment of additional personnel to
compliment existing capabilities in the Department of Housing (DoH).

Our overall assessment is that our capabilities to accelerate the delivery
of housing have been significantly enhanced by the turnaround interventions we
have implemented in the Department of Housing. In March last year, the backlog
of incomplete houses had been reduced to 16 682 units, significantly less than
the 18 000 units we had projected in our 2008 State of the Province Address.
This year, we are on course to meet our revised target of completing 13 682
housing units. The progress we have made this year puts the province in a
better position to complete all incomplete houses and resume the construction
of new housing projects in the next 2009/10 financial year.

In addition to the accelerated delivery of incomplete houses, we will also
complete 1 131 emergency houses to alleviate the distress and damage caused by
the recent natural disasters that occurred in the province this year. 805 of
these emergency houses are in the Bushbuckridge municipality, an area of our
province that was hard hit by storms.

Honourable Members, the social transformation imperative extends beyond the
provision of shelter to include the need to advance the development of
integrated and de-racialised human settlements and quality housing. The launch
of the provincial Breaking New Ground (BNG) housing programme last year marked
our commitment to the development of socially inclusive settlements which are
intended to reverse the inherited distortions of the apartheid space
economy.

In the State of the Province Address in February last year, we committed to
the construction of 500 units in Thaba Chweu as part of our roll-out of the
Breaking New Ground programme. I am pleased to report that work is already
underway for the construction of 548 housing units in Thaba Chweu. All in all,
our housing programme is now back on track. The bold step we took to address
all unfinished projects across the province will now allow the new
administration to start housing delivery on a clean slate, with improved
management capacities.

Education
Madam Speaker, improved access to quality education remains one of the crucial
levers of social development and progress in any developing society such as
ours. As a basic human right, education is one of the most powerful tools to
develop the human capital that is able to drive high levels of economic growth,
reduce poverty and break inter-generational cycles of poverty.

Notwithstanding challenges that still face us in the provincial education
system, we believe the overall systemic improvements to broaden access to
education constitute significant achievements under the current
administration.

Over the last five years, the province has invested substantial resources to
cater for the increased demand and expansion of opportunities for broadened
access to education. As part of advancing the achievement of the Millennium
Development Goals (MDG) equity targets, this period has seen the increase in
the number of girl children gaining access to education. Although female
enrolments in the system remain slightly less at 49,64%, the overall female
enrolment growth trend is a good indication that Mpumalanga will reach the
equity targets of the Millennium Development Goals by 2010.

Madam Speaker, in the February 2008 State of the Province Address, I
articulated the critical importance of Early Childhood Development (ECD) to
ensure that we provide the necessary learning foundation that will impact
positively on future learning performance and educational attainment of young
children. In this regard, we have made significant progress in expanding access
to early childhood development. The number of learners accessing ECD grew from
18 301 in 2004 to 50 196 in 2008. The number of ECD practitioners doubled from
750 in 2004 to 1 785 in 2008.

Madam Speaker, poverty remains one of the key barriers to accessing
education and development opportunities by the poor households, resulting in
children not attending school because parents cannot afford school fees. As
part of the national effort to address the plight of the poor, the province has
ensured that the 'no fee' schools policy is effectively implemented. To date,
952 schools have been declared 'No Fee' schools, benefiting 420 238
learners.

To mitigate the impact of poverty on poor learners, the implementation of
the school nutrition is benefiting 573 725 learners, representing 40 percent of
the total learner enrolments in the schooling system. This programme will be
extended to all Quintile 1 secondary schools in April this year.

Critically, the challenge facing our education system is ensuring that we
continue to work hard to improve the quality of education and performance of
perennially low-performing schools. This will contribute to enhancing learner
attainment levels across all grades, including matric. Working collaboratively
with the national Department of Education (DoE), it is crucial to strengthen
systems and processes for managing matric examinations so that we prevent the
recurrence of the experience we had at the end of last year's matric
examinations.

In this regard, I would like to apologise to the parents and students whose
results were delayed or may still be outstanding for one reason or another for
failing them in our management of systems and processes, thereby subjecting
them to undue anxiety and inconvenience. The debacle surrounding the delayed
matric results must never be repeated. The managerial and administrative
failures involved at both the provincial and national level have come close to
undermining the integrity of the State. The report of the Ministerial Special
Investigating Team must be properly studied and its recommendations be actioned
without further delay.

Health
Madam Speaker, access to quality comprehensive health care is a critical
measure of progress we have made towards improving the quality of life for the
citizens of the Mpumalanga.

As a province, we have worked hard over the last five years to contribute to
the national effort to meet the health related Millennium Development Goals of
reducing infant mortality and maternal mortality, and reversing the spread of
HIV and AIDS, tuberculosis, and malaria.

Madam Speaker, the fight against the devastating impact of HIV and AIDS is
one of the social development priorities that my administration pursued
relentlessly to ensure that we contain the prevalence of this pandemic.

As part of strengthening our capabilities to drive the implementation of HIV
and AIDS initiatives, last year saw the re-launch of the Provincial AIDS
Council. This was an important commitment to mobilise stakeholder partnerships
and support for the accelerated implementation of the national HIV and AIDS
strategy.

We are encouraged by the progress we have made in ensuring that 157
facilities are providing dual therapy for the Prevention of Mother-to-Child
Transmission. To further expand access to comprehensive care, treatment and
support to those infected with HIV and AIDS, the number of wellness centres
providing access to anti-retroviral (ARV) treatment has increased from zero
when we launched the first six in 2004, to 33 in 2008. As at the end of
December last year, 39 878 patients were accessing anti-retroviral
treatment.

Madam Speaker, we took note of the recently publicised shortage of ARV drugs
threatened to impact negatively on the beneficiaries of our ARV treatment
programme. However, I am pleased to indicate that the information peddled was
not accurate and therefore misleading. Our health department has procedures
through which the exposure of patients because of such shortages is
prevented.

We have always been conscious of the obligation to expand primary health
care facilities to ensure that we are able to reach as many people as possible.
To improve access, we have over the last five years ensured that the number of
primary health care (PHC) facilities has increased from 167 in 2004 to 270 in
2008.

Honourable Members, in the State of the Province Address in February last
year, we acknowledged serious challenges confronting the health sector and
committed that the Department of Health would put in place a multi-pronged
turnaround plan to address identified challenges that impede the effective
delivery of health care services to the people of Mpumalanga. I am pleased to
report to this house that work on the implementation of the key pillars of the
turnaround plan has commenced. Among other things, the plan has begun to
address human resource and organisational design issues to improve efficiencies
and unlock capabilities at different levels of health care delivery system.

As part of this transformation plan, the erstwhile Department of Health and
Social Services has been reconfigured into two separate departments with
distinct mandates and dedicated personnel. An appropriate organisational
structure for the Department of Health has been developed to enhance management
and implementation capacities at different levels of the organisation. Among
other key initiatives, we have ensured that 1 129 health professionals have
been appointed to address shortages in crucial areas of health service
delivery. Quality improvement plans have been developed for our hospitals to
enhance responsiveness, turnaround times and efficiency in our health care
delivery system.

Despite progress that the current administration has made in key areas of
the health care delivery system, there are challenges that still need to be
addressed as part of the ongoing turnaround of the health care system in the
province. Among these is the revitalisation of our health facilities. This work
still requires close monitoring going forward because it lies at the heart of
the consolidation of our health services. The revamped organisational state of
the department will go a long way in addressing this challenge.

Heritage and greening
Madam Speaker, our rich and diverse heritage defines our past as the people of
Mpumalanga and accords us an opportunity to reflect on how we continue to
nurture a shared sense of nationhood and promote social cohesion.

In part, our history and heritage draws on the inspirational narratives of
the struggle for freedom and democracy and the relentless pursuit for creating
a just and caring society. As we tackle the development challenges of our time,
the core values and the legacy of heroism and sacrifice of countless South
Africans who fought for liberation continues to mobilise and inspire our
commitment towards creating a better life for the people of Mpumalanga.

In contributing to preserving and celebrating our history and heritage, the
province erected cenotaphs in honour and recognition of our struggle martyrs
and heroes. The cenotaphs in Nkangala, Ehlanzeni and Gert Sibande are indelible
inscriptions of our history that must inspire future generations to emulate the
values of selfless service to create a better society.

As part of the commemoration of the 50th anniversary of the potato boycott,
we unveiled Gert Sibande's befitting monument in Bethal to salute and honour
the contribution of Gert Sibande and his fellow freedom fighters who organised
this boycott to highlight the appalling and repressive conditions under which
farm labourers worked and lived. In our time, this monument should represent
our collective rejection of the repulsive behaviour of some of the unrepentant
racist farmers who continue to perpetrate abuse against workers on the
farms.

Madam Speaker, to immortalise the legacy of Gert Sibande, the province has
commissioned the musical theatre production based on the life and times of Gert
Sibande. Through this musical theatre production, we have unlocked
opportunities to develop local dance and musical talent, and provided the
necessary platform for the youth of the province to hone their artistic talents
while narrating the story of our liberation heritage. That production, Madam
Speaker, is now at an advanced stage and I have reason to be elated because it
is destined to leave theatre lovers in this country spell-bound.

Madam Speaker, as part of the implementation of the Heritage, Greening
Mpumalanga and Tourism flagship, we are heartened by the progress we have made
in preserving and restoring the province's cultural and natural heritage in a
way that promotes the diversification and expansion of tourism development.
However, I believe this is only the beginning of a long exciting journey for
the province.

Enhancing biodiversity conservation, sustainable development and effective
environmental management practices are essential elements of creating a 'green'
province. The degradation of the environment requires collective commitment
towards improving management systems that reverse the negative consequences of
pollution and unsustainable development practices.

Madam Speaker, initiatives to address environmental management issues
include, among others, the installation of nine air quality monitoring stations
to reduce pollution and meet ambient air quality standards, the promotion of
the cleanest town competition and clean-up campaigns to contribute to the
vision of our 'greening agenda'. I am please to report that the Emalahleni –
Steve Tshwete concentrate on the Highveld, and the national highest air
pollution zone, is now equipped with nine air quality monitoring stations,
thanks to the collaboration between the province and the Department of
Environmental Affairs and Tourism (DEAT) in this endeavour.

Governance
Madam Speaker, the task of creating a caring and just society requires the
existence of strong public institutions that have requisite capabilities to
guide policy development and implementation. These institutions are
characterised by a strong culture of sound governance, transparency and
accountability to the citizens of the province.

When we took office in 2004, we understood one of the important tasks we had
was to make a contribution towards building an organisation that would last. To
build Mpumalanga Provincial Government (MPG) as a public institution whose
continued progress will not dependent on the coming and going of politicians,
but fashioned by the collective and a shared understanding of things that must
be done professionally to improve the lives of citizens for the better,
irrespective of who enjoy the privilege of using blue lamps.

Madam Speaker, we prioritised the need to enhance management and leadership
performance to ensure that province is able to deliver on its development and
service delivery priorities. Following the management skills audit that was
conducted in 2004, the province elevated the implementation of the Accelerated
Capacity Building flagship as part of the 'Big Five' flagship programmes.

Through the Accelerated Capacity Building flagship programme, government
paid particular attention to honing the skills of the management echelons of
government to ensure that managers have requisite leadership and management
skills to perform their jobs. Alongside this, we focused on improving
organisational performance through the effective implementation of performance
management systems, recruitment and retention of appropriately skilled
managers.

To date, 126 senior managers have been afforded the opportunity to attend
the Executive Development Programme that empowers them to enhance their
management and leadership skills. The Executive Coaching Programme has also
been implemented to compliment leadership capacities for selected senior
managers.

Madam Speaker, when we assumed office in 2004, we were cognisant of the need
to enhance organisational capacities of various departments to spend financial
resources to achieve their respective service delivery mandates. Over the last
five years, we have seen sustained improvements in the utilisation of resources
allocated to departments, attesting to our growing capacity to execute our
service delivery responsibilities. For all these achievements I wish to pay
tribute to Members of the Executive Council of our province for their
steadfastness and the single-minded way with which they approached this
challenge.

In spite of the increased constraints to delivery due to both negative
global and domestic factors over the last ten months, our administration has
sustained a growing spending capacity of the province progressively since 2004.
For the first time this financial year, 2008/09, our mid-year expenditure
projections anticipated overspending to the tune of R1,2 billion. These trends
have reliably tracked the volume of work the province has been able to do,
year-on-year.

Despite challenges in local government, our overall assessment confirms that
over the last five years we have experienced significant improvements in the
capacity of local government to effectively deliver services. There also are
indications of improved corporate governance of municipalities in the province.
One of the areas of improvement is the ability of our municipalities to submit
financial statements to the Auditor-General (AG). Improvements in the audit
performance by many of our municipalities are a cause for optimism.

The high level of expenditure in the Municipal Infrastructure Grant (MIG)
suggests increased capacities by municipalities to accelerate the roll-out of
infrastructure projects. On average, the municipalities have spent 90 percent
of the municipal infrastructure grants (MIG) in this financial year. Still and
all, the secret behind the delivery in any municipality is political stability.
Where it is lost, delivery inevitably collapses.

Madam Speaker, strong partnerships between government and traditional
leadership institutions are essential in improving the quality of service
delivery in areas under the jurisdiction of traditional leaders. Over the last
five years, the province has enjoyed a constructive and fruitful relationship
with the institution of traditional leadership in the province. In 2005, we
finalised the Mpumalanga Traditional Leadership and Governance Act and the
Mpumalanga Provincial House and Local Houses of Traditional Leaders Act to
guide the operations and the institutionalisation of traditional leadership. We
have successfully conducted elections to reconstitute 53 out of 59 of our
traditional councils by electing the 40 percent which was to be directly
elected by members of the community. The remaining traditional councils will be
reconstituted once all outstanding issues have been resolved.

I wish to take this opportunity to thank all traditional leaders most
sincerely for their co-operation and congratulate the MEC for a job well
done.

As government, we will continue to provide the necessary support to the
traditional councils to ensure that they are able to function effectively.
Government will ensure that the capacity building programme for traditional
leaders is implemented to enable traditional leaders to perform their tasks
effectively. We will soon take through Cabinet policy that will guide the
provision of resources to traditional leaders, their tools of trade, so to
speak.

Madam Speaker, the negative impact of crime remains one of the serious
threats to social development, progress and realisation of human rights and
freedom. The fight against crime remains a major priority. It requires the
mobilisation of partnerships between law enforcement agencies, business and
communities to bring the perpetrators of crime to justice.

As part of mass mobilisation against crime, the province will continue to
conduct Izimbizo to raise awareness about the role communities should play to
combat the scourge of crime. Community safety forums have been established in
31 prioritised police stations to help combat crime. Volunteers have been
recruited to participate in crime prevention initiatives. Working together, we
can do more to defeat the scourge of crime.

Madam Speaker, over the last five years, we have ensured that our
international relations are strategically targeted to enhance the
implementation of the provincial priorities, including the 'Big Five' flagships
and the 2010 World Cup programme.

Our twinning partnership with the province of Alberta in Canada continues to
strengthen co-operation on programmes of sustainable environmental management.
As part of ongoing capacity building, the Executive Council and District
Executive Mayors undertook a study tour to the province of Alberta in Canada in
2006 to benchmark, learn and share experiences on environmental management
issues with their counterparts and draw lessons for implementation in
Mpumalanga. Lessons learned are currently being implemented by province to
advance our 'greening' agenda.

In promoting the objectives of New Partnership for Africa's Development
(NEPAD) and regional co-operation within the African continent, we have renewed
our Memoranda of Understanding with Maputo Province and the newly formed Maputo
City Province in Mozambique. We also signed a new Memorandum of Understanding
with the Governorate of Ismailia in Egypt. Among others, our co-operation with
these African provinces focuses on strengthening trade and investment,
agriculture, tourism development, culture, as well as the implementation of the
2010 World Cup programme.

We are pleased that with the renewed interest in the Maputo Development
Corridor our co-operation has begun to facilitate the identification of joint
projects between Mpumalanga and Mozambican provinces.

Madam Speaker, the province also renewed the Memorandum of Understanding
with the province of North Rhine Westphalia to strengthen co-operation on the
preparation for the 2010 FIFA Soccer World Cup, good governance, sports and
youth development, economic development as well as health and HIV and AIDS.

The experience of Germany in hosting the World Cup in 2006 has enabled North
Rhine Westphalia to provide our province with invaluable technical expertise in
the preparation for hosting the world cup games in the province. As part of the
Youth Empowerment Scheme through sport programme, 604 educators have been
trained as soccer coaches. The Scouts Mpumalanga and Nangu Thina NRW initiative
has assisted our youth in the province with scout and life skill courses.

Honourable Members, we have continued to strengthen our partnership with the
provinces of Sichuan and Chongqing in the People's Republic of China. We have
renewed our Memoranda of Understanding to pursue collaboration on programmes of
economic development, human resource development and agriculture. Programmes
for implementation have been identified.

Despite progress we have made in enhancing the province's relationship with
the outside world, our overall assessment is that our capacity to derive more
value from international partnerships remains a challenge that requires
attention. Critically, we need to accelerate implementation and improve the
monitoring and implementation of projects emanating from twinning partnerships.
Equally, the co-ordination of municipal international relations programme
should be prioritised to ensure that municipalities align their international
programmes to contribute to existing provincial twinning partnerships.

2010 World Cup programme

Madam Speaker, we are satisfied with progress that Mbombela municipality has
made following the provincial government's intervention last year to assist the
municipality in addressing management challenges that threatened to derail our
preparations for the 2010 World Cup. Our intervention in accordance with the
provisions of Section 139 of the Constitution was managed to its logical
conclusion. On behalf of our administration, I wish to convey our appreciation
to Mr Mpungose, the administrator who was appointed to normalise the
administration of Mbombela for a job well done. We wish the new Mayor of
Mbombela, Clr Lassy Chiwayo well, and hope and trust that, under his
stewardship, the municipality will claw back to its past glory days.

Significant progress has been made in the preparations for the hosting of
the 2010 FIFA World by the province. It is particularly pleasing that the
construction of the stadium is on course, and is due for completion in August
this year, four months ahead of the FIFA stipulated December deadline.

Work on the implementation of the FIFA World Cup related projects to which
government has committed is progressing well in terms of agreed plans.
Notwithstanding challenges in some areas, we are satisfied that there is
satisfactory progress in the implementation of sector plans. Among others, the
Public Transport Operational Plan is in place. Construction has commenced on
the Matsafeni Access Road, the R40 high occupancy vehicle lane, and the P166
and N4 interchange site. The Disaster Management Centre is operational at a
temporary site while the permanent Disaster Management Centre is under
construction. An integrated 2010 Safety and Security Plan has been
developed.

Madam Speaker, let me briefly return to the subject of the awakening of the
oriental dragon of today, or shall we say of the future, and its fascinations,
the People's Republic of China (PRC). It is true that there are many criticisms
from those who study development perspectives, about development the China way.
However, with the content of what constitute development defined and agreed
upon, it is a challenge to find anything that parallels the Chinese phenomenon
in the stakes of rapid accelerated development today.

Honourable Members, the plain truth is that there are many inspirational
things about Chinese. For instance, it is probably understandable for
construction workers not to feel excited about delivering infrastructure that
is privately-owned, no matter how aesthetically exhilarating its design may be.
But building public infrastructure that is expressly intended to showcase your
country to the world, especially when you have never had anything like it
before as a community, must be an exceptional experience.

We were moved by the excitement and enthusiasm of the Chinese about building
one dam for close to eight years, simply from the knowledge that they are
building the biggest dam in the world.

The alienation and apparent indifference evinced by the workforce in some of
our 2010 infrastructure projects is, I believe, to every observer unhealthy and
does not bode well for our country. Whatever it is that makes them not to be
proud and excited about it, must be tackled at its roots. It is my plea that
those from our communities who are involved in building all the infrastructure
we have referred to above, the stadia, the roads etcetera, must consider
building them the Chinese way, with pride and excitement, because it is after
all their property.

Madam Speaker, last year we were privileged to host the Council of Southern
Africa Football Associations (Cosafa) Cup games and the Mpumalanga Premier's
International Football Cup as part of enhancing mass mobilisation and
participation. In the Cosafa games, 13 Southern African countries were hosted
by the province during the period of the Cosafa Cup games, enabling the
province to collaborate with soccer bodies on the continent to promote interest
and mass participation in World Cup related build-up events.

Conclusion
Honourable Members, the story of change and advances made in Mpumalanga over
the last five years we owe to the complimentary leadership role we enjoyed as
the executive from this august body, our provincial legislature. The hard work
by all members, individually and collectively, contributed to the quality of
work the province was able to deliver. I know of many Members, our former Chief
Whip included, who made us earn our salaries, who came to the House evidently
over-prepared when they were dealing with the work of the executive, and made
us not fluff the business of government. May our legislature keep up that
constructive spirit.

Madam Speaker, at the end of the day we are just politicians; the people
whose actions were busy transforming this province is our civil servants at all
levels, in particular our senior managers as headed by our HODs. On behalf of
our executive I wish to convey our appreciation for the good things done,
especially those managers who did not say, "It is far safer to blend in and
nurture the common touch." Who did not go by the Machiavellian dictum, "Think
as you like but behave like others" so that you are not punished for making
them feel inferior.

To our senior managers, the past five years have been a period of tremendous
growth in my personal life, thank you for the free education you shared. Let me
leave you with the edifying words of one of America's best sons and a statesman
of the mid-19th Century, President Abraham Lincoln, "Let us have faith that
right makes might, and in that faith, let us, to the end, dare to do our duty
as we understand it."

To my colleagues in the executive over the last five years; some say people
get the rulers they deserve. Thank you for always believing that our people
deserve better and always seek to give your best in everything you do because
of your respect for where our country comes from. And in so doing seek to
challenge what the celebrated African writer, Chinua Achebe, lamented when he
said the ordinary citizens of Africa are like sane people who find themselves
trapped in a dangerous and rowdy madhouse; "the lunatics may be outnumbered but
they own the place."

Despite challenges and constraints we encountered in meeting the social
developmental outcomes we sought to achieve during this period of our
administration, we are confident that, as a province, we have contributed
immensely to the progressive realisation of fundamental socio-economic rights
that the citizens of Mpumalanga are entitled to enjoy.

The future of our province is pregnant with endless possibilities to further
improve the quality of life of Mpumalanga citizens whilst ensuring that the
province occupies its rightful place in advancing the material prosperity of
our country.

Let us confidently hope that all will yet be well.

I thank you.

Issued by: Mpumalanga Provincial Government
20 February 2009